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plenty of we set aside plenty of time

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for Q&A. So that is on purpose. uh we we

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this to be a a good discussion

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workshopping this this subject and uh of

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course um LRB does have a bunch of you

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know slides and data to to present and

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go over but they also have the

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spreadsheets that back up this data and

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they and uh they can take us through a

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an interactive process too if if you

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want to dive deeper on to any particular

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item that they share with us.

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>> Right. Thank you. I do need to um

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mention we need to excuse council member

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Kilpac. He will not be here today, but

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everyone else is here. All right.

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Lauren Fred, are you ready?

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>> I am ready. Uh will you

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>> welcome.

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>> Will you be able to see my screen if I

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share it?

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» Well, that's a good question.

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We will find out.

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Share.

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>> It's in progress.

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>> Then request.

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Okay. [clears throat and cough]

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Multiple presenters can share.

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All right. Can you see my screen now?

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>> Yes. Yes.

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>> Oh, that's not the that's not the

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>> It should say city of Oram property tax

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discussion. Oh yes, yes.

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>> Yes.

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>> Excellent. Okay. So, um, no budget or

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finance discussion would be complete

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without a discussion of property taxes,

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right? I'm sure you were all thinking

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that. Um, [clears throat] first of all,

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thank you for allowing Fred and I to uh,

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you know, continue to work with the city

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in this capacity. Um, ORM has been a

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client of mine since I was as green as

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grass in this industry, even before I

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started LRB. So, [clears throat] a part

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of my heart and soul is in Orum. And um

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my kids can tell you as I as we drive

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through the city and come to events, I'm

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like, "Oh, we financed that. I financed

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that." [laughter]

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That was every time I meet someone new,

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I'm like, "What city are you from?" And

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I tell, "Oh, we finance the the rec

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center." And people were raving about

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it, by the way. So, [clears throat]

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um uh we love working with you and

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appreciate the opportunity. So,

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um one of the and I want to thank you

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for allowing me I think in Bren's ideal

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world, I would, you know, not be coming

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first with a, you know, hit him out of

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the the shoot with uh a property tax

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discussion, but I have a doctor's

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appointment this afternoon that I really did not want to cancel. And so,

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we've um reorganized things a little bit

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differently. So, [clears throat] um this

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is probably the least fun um uh part of

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the discussion, and that is about

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property taxes. We've had some of this

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discussion before at your retreat. I

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have paired it down. Uh but just want to

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remind everyone uh you know some of the

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things that you need to be cognizant of

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as well as the very unfortunate fact

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that the legislature uh decided in their

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infinite wisdom to make some changes to

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um you know what you have to do if you

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are going to uh seek to raise your

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property taxes. Um, I could pontificate

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for hours about how angry and frustrated

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I am about what they've dreamt up, but

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uh, nonetheless, we all have to comply

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with it. But I'll I'll talk about it

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here a little while later.

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So [clears throat] again, by way of

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reminder, property tax uh process in

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Utah is designed so that you have

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substantially the same dollar revenue

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from year to year, regardless of whether

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or not property value of existing

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structures is going up or down. It's

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designed on a collective basis. So, um

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you [clears throat] know, if a uh you

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know, a neighbor does a big remodel and

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the other one's house partly falls down,

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um [clears throat]

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it really is on a on a global basis of

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the taxable value in the city and the

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tax rate will generally adjust downward

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unless the local government um you

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[clears throat] know takes action as I

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would you know implore you again to uh

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strongly consider even under the new uh

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rules. rules that are that are being

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imposed. Um because the property tax

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rate as shown here uh does not account

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for inflationary increases that you get

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on the expense side. It's like saying,

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"Okay, your allowance in, you know,

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let's see, when was I 10 and buying

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candy? Your allowance in the 1970s is,

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you know, $5." And your allowance today

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is $5. Now, go and buy the same

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fill-in-theblank candy bar, comic book,

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whatever it was. I I couldn't do that

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with $5 today. But that is what our

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property tax structure is um is set up

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to do. I have heard people say that when

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the legislation was initially put in

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place to hold um the revenues level that

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they wanted, you know, they did it so

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that governments would be transparent

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and people would know that you're

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raising the rate. And what has happened

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um with many many cities is what ORM has

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done. they just let the rate fall fall

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um and uh you know except for new

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construction you don't [clears throat]

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really get to capture um um any

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additional revenues. So this graph this

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is ORM city's tax rate from 2016 to

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today.

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What I want you to really think about,

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we'll I'll talk about some of the

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reasons why, is um you know, seeking to

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maintain

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um you know the the rate uh so that you

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can capture some of what you need to uh

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in in terms of inflationary costs.

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So here we go. [clears throat] This

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graph. So again going to go back here.

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This is the property tax rate goes down, down, down because your taxable

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value is going up as new uh new

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construction occurs.

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This graph shows property tax revenues

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increasing. And so you might say, well,

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Lara, rates gone down, but look, we're

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we, you know, we were collecting 10

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million back in 2015 and we're now maybe

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at 11 and change, whatever that is.

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>> [clears throat]

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>> But you've got to remember that you're

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capturing that because of this growth in

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um the growth in revenues is tied to new

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construction. So you do get to capture

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oh you know XYZ business built a new

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office building. You do get to capture

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that when that that tax rate's being set

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because it comes with a need to provide

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additional services. You build a new you

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know someone built a new Walmart. Yay.

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get the the value, but you also get, oh,

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we're going to have to police that for

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shoplifting or whatever calls you have

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to go out there.

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>> So, as a city is nearing or at buildout,

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I know you probably, you know, starting

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to see some um vertical, you know,

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stacked construction, but as you are

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nearing buildout, relying on property

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tax revenue from new growth, it's just

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not sustainable. Again, Fred's going to

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talk to you about sustainability

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planning. And if you're trying to rely

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on um you know new growth, new Woodbury

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developments, new carve lots, whatever,

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it's just not sustainable when you a

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have added expenses when new businesses

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come in and new homes come in and you

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have um um added uh reduced um you know

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total revenues. So I'm going to jump

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back to this one here. My

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beat the horse dead here. Goal is to

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maintain my opinion the goal of cities

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should seek to at least maintain

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increase if and where necessary above

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your you know current certified rate but

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to at least maintain your um current

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certified rate.

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So um again I showed this at your treat.

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I'll do it very quickly here so that you

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can see cities that have gone through uh

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the process to increase their rate. So,

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anything where it's green, a a city has

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gone through a process to increase their

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rate above the the previous year's

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certified rate because unless they've

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had no growth [clears throat]

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um um and no increase in property

200
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values, which that hasn't happened in a

201
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long time, these rates just naturally

202
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fall. like um you know yours down here

203
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in bold and Salem's just they just keep

204
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naturally falling. Um this shows a

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three-year average of [clears throat]

206
00:09:19,519 --> 00:09:23,200
these um selected cities in Utah County.

207
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And um of those that we've selected um

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and granted I will say you know Vineyard

209
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is the the high tax rate in in Utah

210
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County because uh something like 75% of

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their property [clears throat] is in an

212
00:09:37,360 --> 00:09:40,800
RDA. So they're really only capturing

213
00:09:40,800 --> 00:09:44,160
their real full property tax off of, you

214
00:09:44,160 --> 00:09:47,120
know, 25% of of the city and then the

215
00:09:47,120 --> 00:09:50,399
share they get from the RDA. But, you

216
00:09:50,399 --> 00:09:54,160
know, your tax rate is is very very low.

217
00:09:54,160 --> 00:09:56,240
I know that if you seek to raise tax

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rates, people generally come with their

219
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pitchforks and all the anger that they

220
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can muster. And you know, if you choose

221
00:10:03,360 --> 00:10:05,519
to go ahead with that, um, I'm happy to

222
00:10:05,519 --> 00:10:08,720
participate in education of citizens

223
00:10:08,720 --> 00:10:10,399
because I don't think your average

224
00:10:10,399 --> 00:10:12,480
citizen understands this. I think your

225
00:10:12,480 --> 00:10:15,040
average citizen would say, "Well, my

226
00:10:15,040 --> 00:10:17,680
taxes go up every year." And that may

227
00:10:17,680 --> 00:10:20,399
be, but they haven't gone up every year

228
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because of Orum, right? If their house

229
00:10:23,040 --> 00:10:24,560
used to be worth 300 and it's now

230
00:10:24,560 --> 00:10:27,360
worth500 and you used to collect $300

231
00:10:27,360 --> 00:10:29,519
and their house is now worth 500,000,

232
00:10:29,519 --> 00:10:30,959
you're still collecting the same old

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00:10:30,959 --> 00:10:34,160
$300 from them. Um, school district may

234
00:10:34,160 --> 00:10:35,360
have increased. County may have

235
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increased, water district may have

236
00:10:36,720 --> 00:10:39,279
increased. So, their total tax bill may

237
00:10:39,279 --> 00:10:41,839
have increased, but ORM's not getting

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00:10:41,839 --> 00:10:43,920
any of that. [clears throat]

239
00:10:43,920 --> 00:10:46,480
So, had you held So, let's go back here.

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00:10:46,480 --> 00:10:51,440
2019, the tax rate 001260.

241
00:10:51,440 --> 00:10:53,600
Stick with me here. [clears throat]

242
00:10:53,600 --> 00:10:58,320
That was clear back here 9 2019.

243
00:10:58,320 --> 00:11:01,557
Had you maintained that tax rate

244
00:11:01,557 --> 00:11:04,160
[clears throat] just every year readopt

245
00:11:04,160 --> 00:11:06,160
um you know to bring it up to that flat

246
00:11:06,160 --> 00:11:10,000
a flat tax rate the city would be um

247
00:11:10,000 --> 00:11:12,399
collecting5 million more dollars a year

248
00:11:12,399 --> 00:11:14,320
than it is today. [clears throat] So

249
00:11:14,320 --> 00:11:16,560
this is my opinion is like your lost

250
00:11:16,560 --> 00:11:18,880
buying power because things are still

251
00:11:18,880 --> 00:11:22,399
more and more expensive.

252
00:11:22,399 --> 00:11:23,920
Something else you need to think about

253
00:11:23,920 --> 00:11:25,440
in terms of you [clears throat] know

254
00:11:25,440 --> 00:11:28,079
your revenue mix

255
00:11:28,079 --> 00:11:30,000
um as you're thinking about you know

256
00:11:30,000 --> 00:11:34,160
property tax increases is your property

257
00:11:34,160 --> 00:11:37,360
tax revenues as a portion of the whole

258
00:11:37,360 --> 00:11:40,560
of ORM's revenues has continued to

259
00:11:40,560 --> 00:11:42,640
dwindle. It used to be, you know,

260
00:11:42,640 --> 00:11:45,200
rounded, we'll call it 49%, rounded

261
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here, um, oh no, sorry, reading sales

262
00:11:47,279 --> 00:11:50,959
tax. Rounded here, 21%

263
00:11:50,959 --> 00:11:53,120
rounded here. Property taxes now make up

264
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about 17%.

265
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And that decline um in how much property

266
00:12:00,240 --> 00:12:03,519
tax revenues are making up of your total

267
00:12:03,519 --> 00:12:07,440
revenue mix is um important from a

268
00:12:07,440 --> 00:12:09,920
stability perspective. So you think

269
00:12:09,920 --> 00:12:12,720
about you as a government. What can you

270
00:12:12,720 --> 00:12:15,360
control and what can't you control? You

271
00:12:15,360 --> 00:12:18,240
can't control prices of you know goods.

272
00:12:18,240 --> 00:12:21,360
You can't control um you know you can't

273
00:12:21,360 --> 00:12:23,519
make people shop. You can't make them

274
00:12:23,519 --> 00:12:25,680
buy expensive steaks if they want to buy

275
00:12:25,680 --> 00:12:28,560
hot dogs. Um [clears throat]

276
00:12:28,560 --> 00:12:32,320
so this um property tax is kind of the

277
00:12:32,320 --> 00:12:35,040
only thing that you can rely on. It's

278
00:12:35,040 --> 00:12:37,519
what's you know consistent that you can

279
00:12:37,519 --> 00:12:39,839
to a very large degree control because

280
00:12:39,839 --> 00:12:44,480
you can control the rate. So as this the

281
00:12:44,480 --> 00:12:46,320
property tax has declined as a

282
00:12:46,320 --> 00:12:49,839
percentage of your um total it should be

283
00:12:49,839 --> 00:12:52,480
frankly of a concern to you in in terms

284
00:12:52,480 --> 00:12:54,720
of being able to maintain the level of

285
00:12:54,720 --> 00:12:57,120
service that you have provided in the

286
00:12:57,120 --> 00:13:00,240
past. So [clears throat] I will tell you

287
00:13:00,240 --> 00:13:02,800
it is a concern rating agencies and

288
00:13:02,800 --> 00:13:05,360
investors because their first question

289
00:13:05,360 --> 00:13:07,839
when you're this reliant on sales tax

290
00:13:07,839 --> 00:13:11,200
you know 48 49% is what's going to

291
00:13:11,200 --> 00:13:14,160
happen in a recession I mean they all

292
00:13:14,160 --> 00:13:17,360
stress it back to the 0809 you know

293
00:13:17,360 --> 00:13:18,639
whatever they call that wasn't a

294
00:13:18,639 --> 00:13:21,074
recession the almost recession um

295
00:13:21,074 --> 00:13:22,399
[clears throat]

296
00:13:22,399 --> 00:13:27,519
um uh they all you know put that in as their stress case scenario when we go

297
00:13:27,519 --> 00:13:32,000
to get a rating and they know that sales

298
00:13:32,000 --> 00:13:34,639
tax revenues will decline in in a

299
00:13:34,639 --> 00:13:36,959
recession. Um, again, we've talked

300
00:13:36,959 --> 00:13:38,480
about, you know, the city needing to be

301
00:13:38,480 --> 00:13:40,320
mindful of what you can and can't

302
00:13:40,320 --> 00:13:43,120
control and you can control the the

303
00:13:43,120 --> 00:13:46,560
property tax rate.

304
00:13:46,560 --> 00:13:49,360
So, I know because I've, you know, been

305
00:13:49,360 --> 00:13:51,279
in many city council meetings when

306
00:13:51,279 --> 00:13:53,760
they've, you know, wanted to raise taxes

307
00:13:53,760 --> 00:13:55,519
and what do citizens say? Well, cut

308
00:13:55,519 --> 00:13:58,240
expenses, cut expenses. And then we

309
00:13:58,240 --> 00:13:59,839
start saying, "Okay, well, what services

310
00:13:59,839 --> 00:14:01,199
don't you want? Do you want less police?

311
00:14:01,199 --> 00:14:04,399
Do you want less fire?" "No, no, no. We

312
00:14:04,399 --> 00:14:08,720
I'll pick some mow the parks less often

313
00:14:08,720 --> 00:14:12,240
or something like that, right?" So there

314
00:14:12,240 --> 00:14:15,839
is a practical limit to how you can

315
00:14:15,839 --> 00:14:18,240
control expenses

316
00:14:18,240 --> 00:14:21,920
and most everybody kind of conveniently

317
00:14:21,920 --> 00:14:25,680
forgets that most local governments so

318
00:14:25,680 --> 00:14:27,839
this this is true of you of South Jordan

319
00:14:27,839 --> 00:14:31,120
of Ogden whoever most local governments

320
00:14:31,120 --> 00:14:33,760
budgets their general fund budgets about

321
00:14:33,760 --> 00:14:39,360
65 to 75% generally is made up of

322
00:14:39,360 --> 00:14:43,120
salaries ies, wages and benefits.

323
00:14:43,120 --> 00:14:46,880
So you know these idea of cutting you

324
00:14:46,880 --> 00:14:49,279
know of non-s salary items like oh we

325
00:14:49,279 --> 00:14:53,360
will you know not put new light bulbs in

326
00:14:53,360 --> 00:14:55,040
the library or [laughter] whatever right

327
00:14:55,040 --> 00:14:57,760
so it's not a salary we'll really find

328
00:14:57,760 --> 00:15:01,279
ways to save on whatever you know is a

329
00:15:01,279 --> 00:15:04,720
non salary thing chances are they're not

330
00:15:04,720 --> 00:15:06,560
those things are not going to move the

331
00:15:06,560 --> 00:15:08,959
needle much I believe because ORM has

332
00:15:08,959 --> 00:15:12,880
seen that um you know um not very large

333
00:15:12,880 --> 00:15:15,519
increase in your property tax revenues

334
00:15:15,519 --> 00:15:19,199
um an added um you know citizens and

335
00:15:19,199 --> 00:15:22,250
businesses that you need to serve. Um,

336
00:15:22,250 --> 00:15:24,000
[clears throat] I think Gorm's squeezed

337
00:15:24,000 --> 00:15:25,440
about as much blood out of the turnup

338
00:15:25,440 --> 00:15:29,839
historically as it can without cutting

339
00:15:29,839 --> 00:15:31,760
salaries and wages which will have a

340
00:15:31,760 --> 00:15:34,240
direct impact on your service levels

341
00:15:34,240 --> 00:15:36,800
whether that's again police, fire,

342
00:15:36,800 --> 00:15:38,320
crossing guards and I don't know what it

343
00:15:38,320 --> 00:15:40,560
would be but it's when you start talking

344
00:15:40,560 --> 00:15:42,880
about that to citizens of okay are you

345
00:15:42,880 --> 00:15:46,000
okay with you know 10 less officers a

346
00:15:46,000 --> 00:15:47,519
year because great there's a there's a

347
00:15:47,519 --> 00:15:51,199
good cut for us right so you need to be

348
00:15:51,199 --> 00:15:53,360
mindful of if if the push is going to

349
00:15:53,360 --> 00:15:55,279
be, oh, we got to tighten our belt some

350
00:15:55,279 --> 00:15:58,079
more. We got to get more efficient. Um,

351
00:15:58,079 --> 00:16:00,399
that what it's really going to come down

352
00:16:00,399 --> 00:16:02,959
to is what services do you want to cut

353
00:16:02,959 --> 00:16:05,680
staff from?

354
00:16:05,680 --> 00:16:07,360
Um, from [clears throat]

355
00:16:07,360 --> 00:16:11,120
March of 25 to March of 26, um, CPI has

356
00:16:11,120 --> 00:16:13,440
gone up by 3.3%.

357
00:16:13,440 --> 00:16:15,360
Uh, the next release won't occur until

358
00:16:15,360 --> 00:16:18,581
almost the middle of May. Um the

359
00:16:18,581 --> 00:16:20,399
[clears throat] index for energy has

360
00:16:20,399 --> 00:16:22,320
risen as you can all imagine because you

361
00:16:22,320 --> 00:16:26,079
go to the the gas station and buy gas by

362
00:16:26,079 --> 00:16:28,320
uh 10.9%

363
00:16:28,320 --> 00:16:31,680
which was largely driven by this 21.2%

364
00:16:31,680 --> 00:16:34,160
increase in the index for gasoline. And

365
00:16:34,160 --> 00:16:35,839
when you think about that from a city's

366
00:16:35,839 --> 00:16:38,880
perspective, think about every vehicle

367
00:16:38,880 --> 00:16:41,120
that's a city vehicle that is rolling on

368
00:16:41,120 --> 00:16:45,120
your streets. police, fire, roads

369
00:16:45,120 --> 00:16:48,320
maintenance, sweepers, I can, you know,

370
00:16:48,320 --> 00:16:50,959
whatever. Those trucks that vacuum out

371
00:16:50,959 --> 00:16:53,920
the sewers, they all use gas. And this

372
00:16:53,920 --> 00:16:56,240
year, that's going to go up a lot,

373
00:16:56,240 --> 00:16:59,680
right? So, back to, okay, what can we

374
00:16:59,680 --> 00:17:01,920
and can't we control? Can you cut those

375
00:17:01,920 --> 00:17:04,559
costs? Not without cutting services,

376
00:17:04,559 --> 00:17:06,400
right?

377
00:17:06,400 --> 00:17:08,480
um [clears throat] from December of last

378
00:17:08,480 --> 00:17:12,400
year to uh December 24, December 25,

379
00:17:12,400 --> 00:17:15,280
wages increased by 3.4%

380
00:17:15,280 --> 00:17:18,559
which is uh slightly higher than even um

381
00:17:18,559 --> 00:17:20,160
CPI.

382
00:17:20,160 --> 00:17:22,480
I'm going to get on my soap box just a

383
00:17:22,480 --> 00:17:24,079
little bit

384
00:17:24,079 --> 00:17:27,439
related to the state. One of my huge

385
00:17:27,439 --> 00:17:31,039
frustrations um when big brother state

386
00:17:31,039 --> 00:17:33,919
comes in and says, "Oh, you city have to

387
00:17:33,919 --> 00:17:36,000
do your property tax increase this way

388
00:17:36,000 --> 00:17:38,240
because you know we get complaints from

389
00:17:38,240 --> 00:17:39,600
citizens they don't like property

390
00:17:39,600 --> 00:17:41,200
taxes."

391
00:17:41,200 --> 00:17:43,840
Well, the state doesn't have to deal

392
00:17:43,840 --> 00:17:47,520
with what you deal with related to that

393
00:17:47,520 --> 00:17:50,240
falling revenue source. So, two of the

394
00:17:50,240 --> 00:17:53,440
largest revenues to the state are sales

395
00:17:53,440 --> 00:17:56,559
tax, which you benefit from. Think about

396
00:17:56,559 --> 00:17:58,000
poor school districts that don't get

397
00:17:58,000 --> 00:18:00,720
that, right? You at least benefit from

398
00:18:00,720 --> 00:18:04,080
when prices go up, people pay more and

399
00:18:04,080 --> 00:18:06,240
you collect more sales tax until prices

400
00:18:06,240 --> 00:18:08,640
go up too high and they quit shopping.

401
00:18:08,640 --> 00:18:12,000
The state benefits from income taxes,

402
00:18:12,000 --> 00:18:13,840
which should be top of mind for all of

403
00:18:13,840 --> 00:18:15,827
us since they're due tomorrow.

404
00:18:15,827 --> 00:18:16,240
>> [clears throat]

405
00:18:16,240 --> 00:18:19,840
>> So as inflation goes along, so those you

406
00:18:19,840 --> 00:18:23,200
know 3.4% a year and five and nine when

407
00:18:23,200 --> 00:18:25,840
it was really bad, [laughter] right?

408
00:18:25,840 --> 00:18:28,240
What that does is it drives salary

409
00:18:28,240 --> 00:18:29,919
increases.

410
00:18:29,919 --> 00:18:32,640
>> I earn more money. I pay more income

411
00:18:32,640 --> 00:18:36,320
tax. So their revenue streams are a

412
00:18:36,320 --> 00:18:38,720
little bit more directly tied to capture

413
00:18:38,720 --> 00:18:42,080
the benefits, you know, of inflation

414
00:18:42,080 --> 00:18:44,559
where your property tax is not. It

415
00:18:44,559 --> 00:18:47,360
ignores inflation entirely. It's why I

416
00:18:47,360 --> 00:18:50,240
really really hate when they come down

417
00:18:50,240 --> 00:18:52,880
with the you have to do it this way

418
00:18:52,880 --> 00:18:55,120
because they don't do anything like

419
00:18:55,120 --> 00:18:59,760
that. Okay. Off my soap box. Okay. Um

420
00:18:59,760 --> 00:19:01,280
now we'll look at the ability and

421
00:19:01,280 --> 00:19:03,840
willingness to raise revenues um when

422
00:19:03,840 --> 00:19:07,679
necessary except for property tax rates.

423
00:19:07,679 --> 00:19:10,640
All other rates, sales, franchise fees,

424
00:19:10,640 --> 00:19:13,840
everything else that you can um uh you

425
00:19:13,840 --> 00:19:16,480
can control is at the maximum rate. Your

426
00:19:16,480 --> 00:19:18,240
sales tax is at the maximum rate. Your

427
00:19:18,240 --> 00:19:20,640
franchise fee rates at the maximum rate.

428
00:19:20,640 --> 00:19:23,520
So again, you don't have any ability to

429
00:19:23,520 --> 00:19:25,120
say, "Oh, we're just going to put on a

430
00:19:25,120 --> 00:19:26,960
new sales tax. I do some work in

431
00:19:26,960 --> 00:19:29,520
Arizona." And they do have that ability.

432
00:19:29,520 --> 00:19:32,559
And it's sometimes a very wackadoo tax

433
00:19:32,559 --> 00:19:36,080
structure. I mean, they there's like 30

434
00:19:36,080 --> 00:19:37,600
different items and each of them have a

435
00:19:37,600 --> 00:19:39,440
different sales tax. It's really wild. I

436
00:19:39,440 --> 00:19:41,440
don't know how they control it, but in

437
00:19:41,440 --> 00:19:43,840
Utah, you don't have that. So, the only

438
00:19:43,840 --> 00:19:45,919
element that you can really control is

439
00:19:45,919 --> 00:19:49,520
that property tax rate.

440
00:19:49,520 --> 00:19:53,440
>> Okay. So, the recent legislation um uh

441
00:19:53,440 --> 00:19:55,679
is are these two uh House bill and

442
00:19:55,679 --> 00:19:59,120
Senate bills. And [clears throat]

443
00:19:59,120 --> 00:20:01,200
um I've I've put in here again it's not

444
00:20:01,200 --> 00:20:03,520
anything you as um you know city council

445
00:20:03,520 --> 00:20:05,440
will need to go oh we've got to do this

446
00:20:05,440 --> 00:20:08,080
on you know June 22nd. I mean it's

447
00:20:08,080 --> 00:20:11,520
something um your uh you know great

448
00:20:11,520 --> 00:20:14,160
staff and recorder will will take care

449
00:20:14,160 --> 00:20:17,200
of. But if you're going to seek to um

450
00:20:17,200 --> 00:20:20,400
raise a property taxes there um are are

451
00:20:20,400 --> 00:20:22,559
certain deadlines that you have to give

452
00:20:22,559 --> 00:20:24,880
notice to the county auditor and tax

453
00:20:24,880 --> 00:20:28,080
commission. you have to um you know

454
00:20:28,080 --> 00:20:30,159
receive whatever the certified tax rate

455
00:20:30,159 --> 00:20:31,760
is going to be. You know, if you don't

456
00:20:31,760 --> 00:20:34,559
do anything, we don't have that yet. Um

457
00:20:34,559 --> 00:20:36,240
then if you're going to seek to adopt a

458
00:20:36,240 --> 00:20:40,640
new rate, you have to um um put a notice

459
00:20:40,640 --> 00:20:42,720
of hearing out. They put some new

460
00:20:42,720 --> 00:20:45,679
requirements in in that regard. Has to

461
00:20:45,679 --> 00:20:47,760
be at least 10 days after this notice

462
00:20:47,760 --> 00:20:49,360
evaluation.

463
00:20:49,360 --> 00:20:52,374
uh at least 14 days before the hearing,

464
00:20:52,374 --> 00:20:54,159
[clears throat] you have to hold the tax

465
00:20:54,159 --> 00:20:57,679
increase hearing and no other general

466
00:20:57,679 --> 00:20:59,679
business meetings of the city can be

467
00:20:59,679 --> 00:21:01,120
held the same day. So, you can't say,

468
00:21:01,120 --> 00:21:03,840
"Oh, we need to take action on, you

469
00:21:03,840 --> 00:21:06,000
know, fixing whatever at the park."

470
00:21:06,000 --> 00:21:09,280
Nope. You will hold a hearing on taxes.

471
00:21:09,280 --> 00:21:11,840
It has to be at 6:00 p.m. or later. you

472
00:21:11,840 --> 00:21:15,919
have to allow for reasonable um um time

473
00:21:15,919 --> 00:21:18,000
for people to stand up and respond

474
00:21:18,000 --> 00:21:20,159
without limiting them too much because

475
00:21:20,159 --> 00:21:22,720
then they feel like that's unfair.

476
00:21:22,720 --> 00:21:25,360
And you have to do all of that before

477
00:21:25,360 --> 00:21:28,480
September 1st and then within 7 days

478
00:21:28,480 --> 00:21:30,240
after you do adopt a new rate, you have

479
00:21:30,240 --> 00:21:34,080
to notify the the state and the county.

480
00:21:34,080 --> 00:21:36,720
So these requirements down here are some

481
00:21:36,720 --> 00:21:38,480
of the things that I'm [clears throat]

482
00:21:38,480 --> 00:21:40,240
really dialed up about. I won't

483
00:21:40,240 --> 00:21:42,799
quantificate anymore. But you have to

484
00:21:42,799 --> 00:21:44,480
state that you're considering a tax

485
00:21:44,480 --> 00:21:47,360
rate. That doesn't give me any concern.

486
00:21:47,360 --> 00:21:49,679
The approximate dollar amount of the

487
00:21:49,679 --> 00:21:51,520
revenue increase doesn't give me any,

488
00:21:51,520 --> 00:21:54,600
you know, great concern. Um,

489
00:21:54,600 --> 00:21:56,159
[clears throat] percentage public

490
00:21:56,159 --> 00:21:58,400
hearing, and this is the one that I just

491
00:21:58,400 --> 00:22:01,200
want to go berserk over. For each

492
00:22:01,200 --> 00:22:03,120
department of the city whose budget

493
00:22:03,120 --> 00:22:05,080
would be affected by this

494
00:22:05,080 --> 00:22:05,760
[clears throat]

495
00:22:05,760 --> 00:22:07,600
um you have to outline the budget

496
00:22:07,600 --> 00:22:11,039
increase or decrease to the department

497
00:22:11,039 --> 00:22:14,799
and um articulate the operational impact

498
00:22:14,799 --> 00:22:16,960
to the department if the city approves

499
00:22:16,960 --> 00:22:20,080
or does not approve the increase.

500
00:22:20,080 --> 00:22:22,240
So [clears throat] in the olden days in

501
00:22:22,240 --> 00:22:23,760
2025

502
00:22:23,760 --> 00:22:26,320
you could have said we are going to

503
00:22:26,320 --> 00:22:28,559
increase our tax rate by 5% that'll

504
00:22:28,559 --> 00:22:30,640
generate whatever you know dollars are

505
00:22:30,640 --> 00:22:33,440
making up a number half million dollars

506
00:22:33,440 --> 00:22:35,440
and that just you know you hold the

507
00:22:35,440 --> 00:22:38,000
hearings people come complain but you

508
00:22:38,000 --> 00:22:39,760
now have that money um you know if it

509
00:22:39,760 --> 00:22:41,679
gets approved that money will then come

510
00:22:41,679 --> 00:22:43,760
into your general fund without having to

511
00:22:43,760 --> 00:22:46,400
effectively I mean line iteming is a

512
00:22:46,400 --> 00:22:48,400
little bit of an overstretch but it's

513
00:22:48,400 --> 00:22:50,159
almost I mean Brandon's is going to have

514
00:22:50,159 --> 00:22:52,880
to um you know put forth what you're

515
00:22:52,880 --> 00:22:54,205
going to do with this money.

516
00:22:54,205 --> 00:22:55,200
[clears throat] And the state has made

517
00:22:55,200 --> 00:22:57,760
it amply clear that they intend to um

518
00:22:57,760 --> 00:22:59,280
follow up and make sure that that's

519
00:22:59,280 --> 00:23:02,080
reflected in um your [clears throat]

520
00:23:02,080 --> 00:23:04,799
budgets and your your actual um audits

521
00:23:04,799 --> 00:23:07,600
at the end of the year. I think it's

522
00:23:07,600 --> 00:23:09,520
crazy and unfair, but nonetheless,

523
00:23:09,520 --> 00:23:13,039
that's what they're doing. Um uh you

524
00:23:13,039 --> 00:23:16,159
have certain advertising uh requirements

525
00:23:16,159 --> 00:23:17,679
um similar to what we talked about

526
00:23:17,679 --> 00:23:20,000
before. It has to be on your website,

527
00:23:20,000 --> 00:23:23,679
has to be published in utileleals.com.

528
00:23:23,679 --> 00:23:27,360
And I did note that the geo bond rate

529
00:23:27,360 --> 00:23:29,120
will not be will still not be included

530
00:23:29,120 --> 00:23:30,480
in the percentage increase. That seems

531
00:23:30,480 --> 00:23:32,880
to be one one little nice small bone

532
00:23:32,880 --> 00:23:35,919
that they they threw to you.

533
00:23:35,919 --> 00:23:38,159
So, uh, the recent legislation does

534
00:23:38,159 --> 00:23:40,559
require the that you identify the need

535
00:23:40,559 --> 00:23:43,760
and use of those revenues. And um you

536
00:23:43,760 --> 00:23:45,360
know just to bring it home I think the

537
00:23:45,360 --> 00:23:47,120
best practice with the city is to seek

538
00:23:47,120 --> 00:23:49,679
to maintain your current tax rate and

539
00:23:49,679 --> 00:23:52,080
identify how you're going to do that. Uh

540
00:23:52,080 --> 00:23:54,559
they don't really limit it. I I think

541
00:23:54,559 --> 00:23:57,360
you could say no we're going to do is

542
00:23:57,360 --> 00:23:58,799
we're going to identify this to help us

543
00:23:58,799 --> 00:24:02,080
cover for in costes costs of of

544
00:24:02,080 --> 00:24:05,440
inflation on health insurance or

545
00:24:05,440 --> 00:24:08,240
gasoline whatever. The challenge is

546
00:24:08,240 --> 00:24:10,640
then, you know, um, Brandon and your

547
00:24:10,640 --> 00:24:12,880
finance staff have to be able to figure

548
00:24:12,880 --> 00:24:17,760
out how to document that. Um, so

549
00:24:17,760 --> 00:24:20,880
there you go. Any questions related to

550
00:24:20,880 --> 00:24:22,559
taxes specifically? I'll be turning it

551
00:24:22,559 --> 00:24:25,200
over to Fred to really get into the meat

552
00:24:25,200 --> 00:24:27,520
of the financial sustainability plan.

553
00:24:27,520 --> 00:24:29,520
Again, the model is such that um, you

554
00:24:29,520 --> 00:24:31,840
know, he can um, you [clears throat]

555
00:24:31,840 --> 00:24:34,240
know, uh, adjust it. You can do the the

556
00:24:34,240 --> 00:24:36,720
whatifs. what if we, you know, lose 10

557
00:24:36,720 --> 00:24:38,240
police officers? What if we add 10

558
00:24:38,240 --> 00:24:40,320
police officers? Um, you know, within

559
00:24:40,320 --> 00:24:42,559
some limits, uh, he can show you, uh,

560
00:24:42,559 --> 00:24:46,480
how what what those impacts will be.

561
00:24:46,480 --> 00:24:48,159
>> Thank you, council. You have any

562
00:24:48,159 --> 00:24:50,480
questions for Laura about what she's

563
00:24:50,480 --> 00:24:54,870
presented?

564
00:24:54,880 --> 00:24:56,159
» Just are we going to have access to

565
00:24:56,159 --> 00:24:59,840
these documents sometime soon?

566
00:24:59,840 --> 00:25:03,120
So that presentation I already have. So

567
00:25:03,120 --> 00:25:05,200
I can send that out today. That would be

568
00:25:05,200 --> 00:25:06,720
good.

569
00:25:06,720 --> 00:25:13,430
>> Thank you, Laura. boarding.

570
00:25:28,080 --> 00:25:29,279
» Can I ask a question?

571
00:25:29,279 --> 00:25:30,000
>> Yes.

572
00:25:30,000 --> 00:25:31,279
>> Hey, Laura. Yes.

573
00:25:31,279 --> 00:25:32,159
>> Can you hear me?

574
00:25:32,159 --> 00:25:35,520
>> Yep. seen that legislation as it was

575
00:25:35,520 --> 00:25:37,360
going through the different revisions

576
00:25:37,360 --> 00:25:40,159
and we were attending LPC and and they

577
00:25:40,159 --> 00:25:42,880
were viewing those with us. Um there was

578
00:25:42,880 --> 00:25:46,720
conversation about remodeling

579
00:25:46,720 --> 00:25:49,760
being counted as new growth. Did that

580
00:25:49,760 --> 00:25:52,320
end up in the final version? Do you know

581
00:25:52,320 --> 00:25:53,200
anything about that? I

582
00:25:53,200 --> 00:25:54,880
>> I don't know, but I could certainly find

583
00:25:54,880 --> 00:25:56,480
out.

584
00:25:56,480 --> 00:25:58,720
In my opinion, it should have already

585
00:25:58,720 --> 00:26:01,840
been being counted that way. Um, but I

586
00:26:01,840 --> 00:26:04,240
will I will find out. As [clears throat]

587
00:26:04,240 --> 00:26:06,960
as someone who has remodeled my home now

588
00:26:06,960 --> 00:26:10,000
twice, um, you know, time will tell

589
00:26:10,000 --> 00:26:11,440
because I don't have this year's tax

590
00:26:11,440 --> 00:26:15,039
notice yet, but um um, when I remodeled

591
00:26:15,039 --> 00:26:16,880
my house the first time, I mean, I go

592
00:26:16,880 --> 00:26:18,720
through the proper channels, I hire

593
00:26:18,720 --> 00:26:20,559
contractor, we get building permits with

594
00:26:20,559 --> 00:26:23,200
the city, and um, when I [clears throat]

595
00:26:23,200 --> 00:26:25,440
did my first remodel, they didn't pick

596
00:26:25,440 --> 00:26:28,559
up any of it. I mean, they didn't know

597
00:26:28,559 --> 00:26:32,320
whether I had spent $100,000 or 10.

598
00:26:32,320 --> 00:26:35,440
>> So, in our finance conference the other

599
00:26:35,440 --> 00:26:38,720
day, my understanding from that was if

600
00:26:38,720 --> 00:26:42,000
the uh any remodel expands the square

601
00:26:42,000 --> 00:26:43,520
footage

602
00:26:43,520 --> 00:26:47,520
of the home, that would count. If it is

603
00:26:47,520 --> 00:26:50,000
remodeling within the existing square

604
00:26:50,000 --> 00:26:53,840
footage of the structure, it would not.

605
00:26:53,840 --> 00:26:55,840
So where we're at a position where we

606
00:26:55,840 --> 00:26:58,480
will we're seeing revitalization. I mean

607
00:26:58,480 --> 00:27:00,480
quite frankly my whole neighborhood got

608
00:27:00,480 --> 00:27:01,760
new roofs and new sighting from that

609
00:27:01,760 --> 00:27:03,600
hell storm.

610
00:27:03,600 --> 00:27:05,360
>> So is this something that would be

611
00:27:05,360 --> 00:27:07,120
beneficial for us to then approach our

612
00:27:07,120 --> 00:27:08,720
legislators

613
00:27:08,720 --> 00:27:11,200
in order to help our budgeting our piece

614
00:27:11,200 --> 00:27:14,159
of the pie? certainly would as my

615
00:27:14,159 --> 00:27:15,840
understanding of what would count

616
00:27:15,840 --> 00:27:22,400
towards an improvement to the home and obviously change its its value which

617
00:27:22,400 --> 00:27:24,720
again it's all just a change in value

618
00:27:24,720 --> 00:27:27,279
and so that would count as new if we can

619
00:27:27,279 --> 00:27:30,559
get that to count as new growth I think

620
00:27:30,559 --> 00:27:34,080
that is their their logic is that's not

621
00:27:34,080 --> 00:27:37,360
new growth right that's simply keeping

622
00:27:37,360 --> 00:27:41,120
what is already there there so I think

623
00:27:41,120 --> 00:27:43,520
that's their argument and and that would

624
00:27:43,520 --> 00:27:45,520
probably end up being a tough uphill

625
00:27:45,520 --> 00:27:49,200
battle. Um, so I'll be honest, I do sort

626
00:27:49,200 --> 00:27:51,360
of understand what they were saying as

627
00:27:51,360 --> 00:27:52,799
far as obviously if you're adding square

628
00:27:52,799 --> 00:27:59,840
footage to the structure, if you're adding growth to that particular

629
00:27:59,840 --> 00:28:04,559
value. So value in and of itself value

630
00:28:04,559 --> 00:28:07,279
owned above what that base is, right?

631
00:28:07,279 --> 00:28:09,600
because just changing the value doesn't

632
00:28:09,600 --> 00:28:11,520
really that only matters to that one

633
00:28:11,520 --> 00:28:13,760
taxpayer. It doesn't affect us in the

634
00:28:13,760 --> 00:28:15,760
total.

635
00:28:15,760 --> 00:28:19,360
>> So if we I mean to me we should join

636
00:28:19,360 --> 00:28:21,679
with other legacy communities and get

637
00:28:21,679 --> 00:28:24,559
credit as we're built out. You know

638
00:28:24,559 --> 00:28:26,480
maybe we don't want to go up. Maybe

639
00:28:26,480 --> 00:28:28,320
we're where we are and we're happy here

640
00:28:28,320 --> 00:28:30,480
and we will pay for what we have. But as

641
00:28:30,480 --> 00:28:33,679
people improve and keep our community

642
00:28:33,679 --> 00:28:35,200
vibrant,

643
00:28:35,200 --> 00:28:36,960
I would think we would should be

644
00:28:36,960 --> 00:28:39,840
rewarded by that. Um, here's my question

645
00:28:39,840 --> 00:28:41,919
though. When did they change this?

646
00:28:41,919 --> 00:28:43,679
Remind me that the year that we could

647
00:28:43,679 --> 00:28:46,000
have the stable budget that

648
00:28:46,000 --> 00:28:46,720
>> it's been that long.

649
00:28:46,720 --> 00:28:48,720
>> Has it been a really long time?

650
00:28:48,720 --> 00:28:51,600
>> Yeah. Long, long time. They where they

651
00:28:51,600 --> 00:28:54,320
set they fixed so that you had the same

652
00:28:54,320 --> 00:28:56,559
dollar amount of revenue coming in.

653
00:28:56,559 --> 00:28:59,440
That's why your tax rate declines as

654
00:28:59,440 --> 00:29:01,360
total property values increase. So

655
00:29:01,360 --> 00:29:04,240
again, my home goes from, you know,

656
00:29:04,240 --> 00:29:06,960
500,000 to 600,000 just because the

657
00:29:06,960 --> 00:29:10,000
market's gotten better. you, the city,

658
00:29:10,000 --> 00:29:12,480
school district, county, none of you

659
00:29:12,480 --> 00:29:15,600
will get any benefit from me off of that

660
00:29:15,600 --> 00:29:18,720
$100,000 in increased value because what

661
00:29:18,720 --> 00:29:21,600
will happen is the tax rate adjusts down

662
00:29:21,600 --> 00:29:24,000
so that in total you collect the same

663
00:29:24,000 --> 00:29:25,840
dollar amount that you did the previous

664
00:29:25,840 --> 00:29:26,559
year

665
00:29:26,559 --> 00:29:29,039
>> based on the budget we submit. Correct.

666
00:29:29,039 --> 00:29:30,000
Or based

667
00:29:30,000 --> 00:29:31,840
>> we don't submit they they tell us

668
00:29:31,840 --> 00:29:33,679
>> they dictate to you. Yes.

669
00:29:33,679 --> 00:29:35,120
>> The school does the school district

670
00:29:35,120 --> 00:29:38,399
submit a budget? uh school district goes

671
00:29:38,399 --> 00:29:40,080
in and sets

672
00:29:40,080 --> 00:29:42,399
>> the county tells them this is what your

673
00:29:42,399 --> 00:29:44,559
certified tax rate is

674
00:29:44,559 --> 00:29:48,880
>> do you want to go through TNT and change

675
00:29:48,880 --> 00:29:50,720
that certified tax rate

676
00:29:50,720 --> 00:29:51,200
>> okay

677
00:29:51,200 --> 00:29:53,200
>> up or down obviously very rarely goes

678
00:29:53,200 --> 00:29:54,399
down so

679
00:29:54,399 --> 00:29:55,520
>> it's a good time to have that

680
00:29:55,520 --> 00:29:58,399
conversation as the environment in our

681
00:29:58,399 --> 00:30:01,039
cities especially us on the in the foot

682
00:30:01,039 --> 00:30:03,840
of the mountains has changed

683
00:30:03,840 --> 00:30:06,480
>> now we're hell do we have those kind of

684
00:30:06,480 --> 00:30:08,320
conversations with our legislators. This

685
00:30:08,320 --> 00:30:11,520
would be I I get it. It's an uphill

686
00:30:11,520 --> 00:30:13,200
thing, but maybe those convers we should

687
00:30:13,200 --> 00:30:16,399
start those conversations if we want to

688
00:30:16,399 --> 00:30:19,120
be seen as being different right now.

689
00:30:19,120 --> 00:30:22,880
We're not the high growth anymore. We're just not going to get there

690
00:30:22,880 --> 00:30:25,200
because we're built out. And maybe our

691
00:30:25,200 --> 00:30:27,600
state needs to respond

692
00:30:27,600 --> 00:30:29,440
come up with ways to respond to

693
00:30:29,440 --> 00:30:32,640
communities on the um foothills of the

694
00:30:32,640 --> 00:30:34,320
mountains that are the legacy

695
00:30:34,320 --> 00:30:36,240
communities here.

696
00:30:36,240 --> 00:30:38,000
I disagree.

697
00:30:38,000 --> 00:30:42,000
>> Thank you. Okay. Thank you.

698
00:30:42,000 --> 00:30:45,600
>> Comments or questions, council?

699
00:30:45,600 --> 00:30:47,600
>> All right. Turn it over to you.

700
00:30:47,600 --> 00:30:48,880
>> Thank you.

701
00:30:48,880 --> 00:30:51,200
>> Um, one other element to consider as

702
00:30:51,200 --> 00:30:53,440
you're talking about discussions with

703
00:30:53,440 --> 00:30:56,960
legislators, policy makers is uh the

704
00:30:56,960 --> 00:31:01,360
perspective of those policies. So um the

705
00:31:01,360 --> 00:31:03,520
certified tax rate calculation truth and

706
00:31:03,520 --> 00:31:06,080
taxation process is a is a way to do

707
00:31:06,080 --> 00:31:08,320
that to address

708
00:31:08,320 --> 00:31:12,000
um fluctuations and valuations and uh

709
00:31:12,000 --> 00:31:14,000
revenue generation.

710
00:31:14,000 --> 00:31:15,760
But I would argue from the perspective

711
00:31:15,760 --> 00:31:17,679
of the legislature, it's a it's a

712
00:31:17,679 --> 00:31:21,279
proactive or tax protective approach,

713
00:31:21,279 --> 00:31:23,200
meaning you as a legislative body have

714
00:31:23,200 --> 00:31:25,120
to take action versus what you're

715
00:31:25,120 --> 00:31:26,880
describing, which is an automatic

716
00:31:26,880 --> 00:31:28,480
adjustment potentially based on

717
00:31:28,480 --> 00:31:30,720
appreciation of property. So depending

718
00:31:30,720 --> 00:31:32,480
on your perspective, those could be, you

719
00:31:32,480 --> 00:31:34,000
know, those perspectives could be good

720
00:31:34,000 --> 00:31:35,919
or bad, right, on what tool you use

721
00:31:35,919 --> 00:31:39,360
here. But as Lara was describing,

722
00:31:39,360 --> 00:31:41,760
uh there is protection for you as an NC

723
00:31:41,760 --> 00:31:43,840
that you don't lose revenue. you just

724
00:31:43,840 --> 00:31:45,600
don't gain revenue other than new

725
00:31:45,600 --> 00:31:48,880
growth. So you're not going to uh see

726
00:31:48,880 --> 00:31:51,120
the the benefit of appreciation but you

727
00:31:51,120 --> 00:31:54,000
don't suffer appreciation

728
00:31:54,000 --> 00:31:54,399
and

729
00:31:54,399 --> 00:31:56,880
>> well in a way we do because of inflation

730
00:31:56,880 --> 00:31:57,679
that was her point

731
00:31:57,679 --> 00:32:00,159
>> that she

732
00:32:00,159 --> 00:32:02,159
well I I have some slides that will uh

733
00:32:02,159 --> 00:32:03,519
highlight that a little bit more and

734
00:32:03,519 --> 00:32:07,200
then we'll talk about um our purpose

735
00:32:07,200 --> 00:32:08,880
relative to this model. We'll go through

736
00:32:08,880 --> 00:32:10,480
the modeling assumptions that I've baked

737
00:32:10,480 --> 00:32:14,159
into this um and it's a large

738
00:32:14,159 --> 00:32:17,200
spreadsheet um that we bring everything

739
00:32:17,200 --> 00:32:18,720
together relative to revenues and

740
00:32:18,720 --> 00:32:20,880
expenses and I can show you that then

741
00:32:20,880 --> 00:32:22,960
we'll talk about the baseline scenario

742
00:32:22,960 --> 00:32:25,840
and um this is where you know graphs are

743
00:32:25,840 --> 00:32:28,799
a little scary and um this is typically

744
00:32:28,799 --> 00:32:31,440
the outcome when we look at these

745
00:32:31,440 --> 00:32:33,279
factors and the and inflationary

746
00:32:33,279 --> 00:32:35,840
pressures and level of service changes.

747
00:32:35,840 --> 00:32:37,600
Then we'll talk about what tools we have

748
00:32:37,600 --> 00:32:39,840
to use in the context of this model. Uh

749
00:32:39,840 --> 00:32:41,360
and we can play around with those

750
00:32:41,360 --> 00:32:43,519
scenarios if we if you'd like to or if

751
00:32:43,519 --> 00:32:45,200
you want to just talk highle scenarios

752
00:32:45,200 --> 00:32:47,120
that you'd like me to go work through

753
00:32:47,120 --> 00:32:49,039
with staff, we can we can do that as

754
00:32:49,039 --> 00:32:50,799
well.

755
00:32:50,799 --> 00:32:54,480
All righty. Um our our purpose again is

756
00:32:54,480 --> 00:32:56,640
addressing sustainability and how we

757
00:32:56,640 --> 00:32:58,399
evaluate sustainability is from these

758
00:32:58,399 --> 00:33:00,880
three metrics here. We look uh well

759
00:33:00,880 --> 00:33:04,399
sustainability is is um a reflection of

760
00:33:04,399 --> 00:33:08,000
efficiency or uh cost reduction and or

761
00:33:08,000 --> 00:33:11,039
revenue generation. Our model focuses on

762
00:33:11,039 --> 00:33:13,200
this last element which is revenue

763
00:33:13,200 --> 00:33:15,760
generation. But we look to staff

764
00:33:15,760 --> 00:33:17,679
department heads to help us understand

765
00:33:17,679 --> 00:33:19,200
the first two buckets which is

766
00:33:19,200 --> 00:33:20,960
efficiency. how how have we been

767
00:33:20,960 --> 00:33:23,440
efficient in uh the levels of service

768
00:33:23,440 --> 00:33:26,000
and resources that we manage and is

769
00:33:26,000 --> 00:33:28,159
there been any cost reduction or future

770
00:33:28,159 --> 00:33:29,919
cost reduction that we can program into

771
00:33:29,919 --> 00:33:33,200
the model. So uh for instance is we may

772
00:33:33,200 --> 00:33:36,080
receive um input for a specific budget

773
00:33:36,080 --> 00:33:37,600
line item that says we think that cost

774
00:33:37,600 --> 00:33:40,000
could go down over time because of x y

775
00:33:40,000 --> 00:33:42,159
and z and we can program that into the

776
00:33:42,159 --> 00:33:43,760
model

777
00:33:43,760 --> 00:33:46,640
and in this exercise we're always uh

778
00:33:46,640 --> 00:33:51,600
balancing um specificity with uh ease of

779
00:33:51,600 --> 00:33:54,000
administration right so these models can

780
00:33:54,000 --> 00:33:56,320
get very complex and so we have to

781
00:33:56,320 --> 00:33:57,919
balance that and determine what are the

782
00:33:57,919 --> 00:34:00,159
primary drivers in this exercise what

783
00:34:00,159 --> 00:34:02,159
can be assumed away, what do we need to

784
00:34:02,159 --> 00:34:05,200
focus on? Um, so while we have

785
00:34:05,200 --> 00:34:07,200
assumptions and we've programmed a model

786
00:34:07,200 --> 00:34:09,119
that can be manipulated, we could say,

787
00:34:09,119 --> 00:34:10,560
well, we think we need to adjust

788
00:34:10,560 --> 00:34:11,919
something here and we can build that

789
00:34:11,919 --> 00:34:13,520
into the model. So, there's a lot of

790
00:34:13,520 --> 00:34:16,000
flexibility on how we we build this and

791
00:34:16,000 --> 00:34:18,800
what areas we focus on. But again, I

792
00:34:18,800 --> 00:34:20,639
want to highlight that our model when we

793
00:34:20,639 --> 00:34:23,200
look at sustainability,

794
00:34:23,200 --> 00:34:24,960
uh the efficiency and cost reduction

795
00:34:24,960 --> 00:34:27,280
often come to us as inputs or feedback

796
00:34:27,280 --> 00:34:29,359
from staff and then we're manipulating

797
00:34:29,359 --> 00:34:31,040
the model to determine how much revenue

798
00:34:31,040 --> 00:34:33,520
do we need to to uh mitigate any

799
00:34:33,520 --> 00:34:35,520
shortfalls or do we go back to

800
00:34:35,520 --> 00:34:37,280
efficiency and cost reduction and change

801
00:34:37,280 --> 00:34:39,520
the assumptions to get us to where we

802
00:34:39,520 --> 00:34:41,839
need to be.

803
00:34:41,839 --> 00:34:44,000
So, uh this is the process that we go

804
00:34:44,000 --> 00:34:46,639
through. We look at historic budget data

805
00:34:46,639 --> 00:34:48,639
and information that we receive uh from

806
00:34:48,639 --> 00:34:51,520
staff. That is the uh foundation for the

807
00:34:51,520 --> 00:34:53,280
model. We then meet with department

808
00:34:53,280 --> 00:34:56,800
heads to discuss um unfunded needs,

809
00:34:56,800 --> 00:34:59,119
level of service issues,

810
00:34:59,119 --> 00:35:01,599
um changes in those expenditure line

811
00:35:01,599 --> 00:35:03,920
items, trends that may exist and how we

812
00:35:03,920 --> 00:35:06,880
might want to interpret those trends.

813
00:35:06,880 --> 00:35:08,560
That allows us to create a baseline

814
00:35:08,560 --> 00:35:10,640
model that we then go back and review

815
00:35:10,640 --> 00:35:12,000
those assumptions with staff. Say,

816
00:35:12,000 --> 00:35:13,440
"Okay, here's what we thought you said.

817
00:35:13,440 --> 00:35:15,280
is that what you actually said and help

818
00:35:15,280 --> 00:35:17,359
us review all the spreadsheets here in

819
00:35:17,359 --> 00:35:20,160
this in this model. We then recalibrate

820
00:35:20,160 --> 00:35:22,240
the model based on that input and then

821
00:35:22,240 --> 00:35:25,280
we work towards adoption. uh we can also

822
00:35:25,280 --> 00:35:27,040
have a circular equation in this and

823
00:35:27,040 --> 00:35:29,440
that we get to the reccalibration of the

824
00:35:29,440 --> 00:35:30,880
model and we have to go back to staff

825
00:35:30,880 --> 00:35:32,800
say hey this isn't looking like what it

826
00:35:32,800 --> 00:35:35,040
should look like and we get your input

827
00:35:35,040 --> 00:35:38,400
and uh legislative uh directive may say

828
00:35:38,400 --> 00:35:40,000
hey go back to the drawing board you

829
00:35:40,000 --> 00:35:41,680
need to fix all this I don't you know

830
00:35:41,680 --> 00:35:43,200
however you need to do that just fix it

831
00:35:43,200 --> 00:35:46,079
kind of thing so there can be a circular

832
00:35:46,079 --> 00:35:48,560
equation in this it's not um perfectly

833
00:35:48,560 --> 00:35:50,480
linear that once we get to finalization

834
00:35:50,480 --> 00:35:53,839
that it's done um in addition entities

835
00:35:53,839 --> 00:35:56,079
will review this uh on an annual basis

836
00:35:56,079 --> 00:35:58,079
or every couple of years to to make sure

837
00:35:58,079 --> 00:36:00,240
that they're accounting for changes and

838
00:36:00,240 --> 00:36:02,640
assumptions.

839
00:36:02,640 --> 00:36:05,200
All righty. So again, we look at

840
00:36:05,200 --> 00:36:07,200
historic uh we're focused on the general

841
00:36:07,200 --> 00:36:09,680
fund here. This is an exercise that is

842
00:36:09,680 --> 00:36:11,599
similar to when you've evaluated your

843
00:36:11,599 --> 00:36:13,440
utility rates.

844
00:36:13,440 --> 00:36:15,119
essentially determining what our

845
00:36:15,119 --> 00:36:17,280
historic uh general fund revenues and

846
00:36:17,280 --> 00:36:18,720
expenditures look like, what's our

847
00:36:18,720 --> 00:36:21,200
taxable value trends, uh what are our

848
00:36:21,200 --> 00:36:22,800
property tax revenues look like and

849
00:36:22,800 --> 00:36:24,720
other revenues. And then we make

850
00:36:24,720 --> 00:36:26,480
projections with that inflationary

851
00:36:26,480 --> 00:36:28,480
component and say, okay, let's program

852
00:36:28,480 --> 00:36:30,720
inflation rather than looking at a

853
00:36:30,720 --> 00:36:33,440
singular year as it relates to

854
00:36:33,440 --> 00:36:34,880
budgeting. What happens if we push that

855
00:36:34,880 --> 00:36:38,160
out several years and um what does a

856
00:36:38,160 --> 00:36:41,040
trend line look like? As I mentioned, we

857
00:36:41,040 --> 00:36:43,839
also then collect uh new or unfunded

858
00:36:43,839 --> 00:36:46,400
mandates from a department head

859
00:36:46,400 --> 00:36:47,920
perspective. So this is essentially

860
00:36:47,920 --> 00:36:51,359
saying tell us what you need that's over

861
00:36:51,359 --> 00:36:54,079
and above the existing budget line item

862
00:36:54,079 --> 00:36:55,599
expense.

863
00:36:55,599 --> 00:36:58,240
Uh so that may be an addition to an an

864
00:36:58,240 --> 00:37:00,880
existing expenditure line item or it may

865
00:37:00,880 --> 00:37:03,280
be a allgether new expense that doesn't

866
00:37:03,280 --> 00:37:05,680
exist in the budget. We get all of that

867
00:37:05,680 --> 00:37:07,200
from department heads and there's a lot

868
00:37:07,200 --> 00:37:09,280
of again information that goes in the

869
00:37:09,280 --> 00:37:10,800
spreadsheet that we summarize and then

870
00:37:10,800 --> 00:37:13,920
add it to this model. So that's layered

871
00:37:13,920 --> 00:37:17,200
on top of that inflationary variable. So

872
00:37:17,200 --> 00:37:19,200
uh that's another metric that we need to

873
00:37:19,200 --> 00:37:21,359
think about when we talk about

874
00:37:21,359 --> 00:37:24,880
sustainability. Laura really stressed on

875
00:37:24,880 --> 00:37:26,560
uh inflationary pressure, but these

876
00:37:26,560 --> 00:37:28,640
unfunded mandates, level of service

877
00:37:28,640 --> 00:37:31,040
changes are also a pressure point that

878
00:37:31,040 --> 00:37:33,520
is applied uh when you talk about the

879
00:37:33,520 --> 00:37:36,560
general fund and how do we manage that.

880
00:37:36,560 --> 00:37:38,880
Uh so our model pulls that in. We

881
00:37:38,880 --> 00:37:40,720
isolate that as a separate expense line

882
00:37:40,720 --> 00:37:42,240
item so that we can see what that's

883
00:37:42,240 --> 00:37:44,400
doing and we can also turn it off in

884
00:37:44,400 --> 00:37:48,079
total if we need to or want to.

885
00:37:48,079 --> 00:37:51,200
Uh so then we look at uh deficits in the

886
00:37:51,200 --> 00:37:53,359
model saying okay what happens uh when

887
00:37:53,359 --> 00:37:55,440
we apply all of this data the

888
00:37:55,440 --> 00:37:57,440
projections on on revenue and expenses

889
00:37:57,440 --> 00:37:59,920
and our other elements within the budget

890
00:37:59,920 --> 00:38:02,160
and then we go through the decision-m

891
00:38:02,160 --> 00:38:04,000
process. What do we do about it? Go

892
00:38:04,000 --> 00:38:06,160
again going back to the elements of

893
00:38:06,160 --> 00:38:07,839
sustainability. Do we become more

894
00:38:07,839 --> 00:38:10,079
efficient, reduce costs or do we raise

895
00:38:10,079 --> 00:38:12,560
revenue or do we do something a little

896
00:38:12,560 --> 00:38:14,000
bit of all of that? Right? And that's

897
00:38:14,000 --> 00:38:17,119
typically what needs to happen.

898
00:38:17,119 --> 00:38:19,599
All righty. So, uh, we've highlighted

899
00:38:19,599 --> 00:38:22,560
this, um, again, changes in revenue.

900
00:38:22,560 --> 00:38:25,119
We've talked about your issues that as

901
00:38:25,119 --> 00:38:28,000
you become a a builtout community, your

902
00:38:28,000 --> 00:38:30,400
revenue trends might change as you look

903
00:38:30,400 --> 00:38:32,960
to the future. So, the idea of sales tax

904
00:38:32,960 --> 00:38:35,280
revenue continuing to grow at a at a

905
00:38:35,280 --> 00:38:37,200
certain percentage may not be realistic

906
00:38:37,200 --> 00:38:40,000
or may not want to count on that that

907
00:38:40,000 --> 00:38:41,440
revenue line item. So, the the

908
00:38:41,440 --> 00:38:44,160
fluctuations in revenue are an item that

909
00:38:44,160 --> 00:38:46,560
we need to think about. Laura touched on

910
00:38:46,560 --> 00:38:49,839
inflation. Right now we're uh we well we

911
00:38:49,839 --> 00:38:51,680
experienced some high inflation in

912
00:38:51,680 --> 00:38:54,000
previous years that cooled off and then

913
00:38:54,000 --> 00:38:55,760
we're now seeing some inflationary

914
00:38:55,760 --> 00:38:59,359
pressure as a result of uh national um

915
00:38:59,359 --> 00:39:01,040
issues that are affecting some key

916
00:39:01,040 --> 00:39:03,440
metrics of inflation. So that could pick

917
00:39:03,440 --> 00:39:05,359
back up. You can see inflation becoming

918
00:39:05,359 --> 00:39:08,240
more pronounced. Uh the onetime expenses

919
00:39:08,240 --> 00:39:09,920
and then those level of service use

920
00:39:09,920 --> 00:39:11,920
issues are all these elements that we're

921
00:39:11,920 --> 00:39:14,079
feeding into the model. And we talk

922
00:39:14,079 --> 00:39:15,920
about level of service issues. This can

923
00:39:15,920 --> 00:39:19,440
be a positive or a or a debit or a

924
00:39:19,440 --> 00:39:21,280
credit into this model, right? We could

925
00:39:21,280 --> 00:39:23,440
say, hey, we're going to pull back on a

926
00:39:23,440 --> 00:39:24,800
level of service, meaning we don't want

927
00:39:24,800 --> 00:39:27,920
to we don't want to provide a that high

928
00:39:27,920 --> 00:39:29,280
of a level of service, which would

929
00:39:29,280 --> 00:39:31,599
result in an expenditure decrease. Or we

930
00:39:31,599 --> 00:39:33,760
may say we actually want to do more than

931
00:39:33,760 --> 00:39:35,119
what we're providing, in which case

932
00:39:35,119 --> 00:39:37,677
we're adding to that that cost.

933
00:39:37,677 --> 00:39:38,880
[clears throat]

934
00:39:38,880 --> 00:39:41,119
or we they may say when we visited with

935
00:39:41,119 --> 00:39:42,960
staff said if we want to just keep what

936
00:39:42,960 --> 00:39:45,680
we have this is what we think we need

937
00:39:45,680 --> 00:39:48,000
with regards to new or additional

938
00:39:48,000 --> 00:39:52,640
expense. So that's that's that bucket.

939
00:39:52,640 --> 00:39:59,760
All righty. Uh any questions on that? I don't want to keep chugging along

940
00:39:59,760 --> 00:40:01,599
without opportunities to speak to have

941
00:40:01,599 --> 00:40:03,839
dialogue. Any any feedback there? A lot

942
00:40:03,839 --> 00:40:08,160
of it's stuff we've discussed, but

943
00:40:08,160 --> 00:40:10,000
>> thank you.

944
00:40:10,000 --> 00:40:12,000
>> Um, all righty. So, let's start talking

945
00:40:12,000 --> 00:40:13,520
about some of the specifics of this

946
00:40:13,520 --> 00:40:17,200
model. Um, we've used 2019 through 2024

947
00:40:17,200 --> 00:40:19,040
actuals that we've pulled from your

948
00:40:19,040 --> 00:40:21,839
budget documents. So, every year when

949
00:40:21,839 --> 00:40:23,119
Brand is working through the budget

950
00:40:23,119 --> 00:40:25,200
documents, uh, there's information

951
00:40:25,200 --> 00:40:27,119
relative to historic actuals that are

952
00:40:27,119 --> 00:40:29,520
provided as part of that. So, we look

953
00:40:29,520 --> 00:40:31,040
back and get all that information and

954
00:40:31,040 --> 00:40:33,359
bring it into the model. Um in that

955
00:40:33,359 --> 00:40:35,760
process there's obviously changes uh

956
00:40:35,760 --> 00:40:38,240
over time relative to reporting how you

957
00:40:38,240 --> 00:40:39,839
budget the software you use for

958
00:40:39,839 --> 00:40:41,040
budgeting and that creates some

959
00:40:41,040 --> 00:40:43,440
challenges as we aggregate data and put

960
00:40:43,440 --> 00:40:45,680
it into this model. We've done our best

961
00:40:45,680 --> 00:40:47,839
to account for that uh with Brandon's

962
00:40:47,839 --> 00:40:49,520
help say what what should be in this

963
00:40:49,520 --> 00:40:52,000
model as we focus on the general fund

964
00:40:52,000 --> 00:40:54,400
alone. There's there are transfers that

965
00:40:54,400 --> 00:40:56,240
go out of the general fund enterprise

966
00:40:56,240 --> 00:40:58,079
funds that are all providing services.

967
00:40:58,079 --> 00:41:00,400
We're focused on the general fund and

968
00:41:00,400 --> 00:41:02,960
what it provides and pushing everything

969
00:41:02,960 --> 00:41:05,760
else away from the model.

970
00:41:05,760 --> 00:41:08,000
Uh we're bringing in 2025 projected

971
00:41:08,000 --> 00:41:12,079
actuals and our 2026 budget numbers.

972
00:41:12,079 --> 00:41:15,280
Um we then project that to through 2041,

973
00:41:15,280 --> 00:41:17,920
but we focus on uh a 5-year planning

974
00:41:17,920 --> 00:41:19,599
horizon when it comes to actual policy

975
00:41:19,599 --> 00:41:21,680
discussion. And that's really based on

976
00:41:21,680 --> 00:41:24,480
the fact that, you know, as you go uh

977
00:41:24,480 --> 00:41:26,720
farther and farther along in time

978
00:41:26,720 --> 00:41:28,480
relative to our understanding of

979
00:41:28,480 --> 00:41:30,720
assumptions, that gets murkier and

980
00:41:30,720 --> 00:41:32,560
murkier, right? Our crystal ball is just

981
00:41:32,560 --> 00:41:35,200
going to get really foggy um as you get

982
00:41:35,200 --> 00:41:36,960
too far out there. So we don't want to

983
00:41:36,960 --> 00:41:39,040
necessarily make policy decisions based

984
00:41:39,040 --> 00:41:41,040
on those out years. But it does help us

985
00:41:41,040 --> 00:41:43,359
understand trends and say okay for

986
00:41:43,359 --> 00:41:44,880
example if we had a huge capital

987
00:41:44,880 --> 00:41:46,240
investment that was coming into the

988
00:41:46,240 --> 00:41:48,800
tenant we could program that in the

989
00:41:48,800 --> 00:41:51,760
model and see if we want to make any um

990
00:41:51,760 --> 00:41:53,839
uh policy decisions now to help mitigate

991
00:41:53,839 --> 00:41:56,400
that that issue. I'm working with

992
00:41:56,400 --> 00:41:59,680
several uh solid waste utility or solid

993
00:41:59,680 --> 00:42:01,520
waste districts and they have some of

994
00:42:01,520 --> 00:42:04,079
this issue where their closure uh

995
00:42:04,079 --> 00:42:05,440
they're uh the closure of those

996
00:42:05,440 --> 00:42:07,760
facilities are happening in in 2039

997
00:42:07,760 --> 00:42:09,760
2040. So I want to start thinking about

998
00:42:09,760 --> 00:42:12,079
how they plan for that now making

999
00:42:12,079 --> 00:42:14,160
incremental changes rather than huge

1000
00:42:14,160 --> 00:42:18,560
changes when we get to 2035 example.

1001
00:42:18,560 --> 00:42:20,560
So uh the other thing I wanted to

1002
00:42:20,560 --> 00:42:23,520
highlight here is the model is based off

1003
00:42:23,520 --> 00:42:26,000
budgeted figures.

1004
00:42:26,000 --> 00:42:29,200
So in any uh budgeting process

1005
00:42:29,200 --> 00:42:32,319
uh across the state of Utah there is a

1006
00:42:32,319 --> 00:42:36,079
an exercise to ensure that your um to to

1007
00:42:36,079 --> 00:42:37,920
be conservative

1008
00:42:37,920 --> 00:42:40,079
uh we may underp project revenues a

1009
00:42:40,079 --> 00:42:42,240
little bit and overp project expenses a

1010
00:42:42,240 --> 00:42:43,599
little bit right so that when we get to

1011
00:42:43,599 --> 00:42:46,319
reality we don't get into trouble. Well,

1012
00:42:46,319 --> 00:42:48,800
that this model perpetuates that, right?

1013
00:42:48,800 --> 00:42:51,200
We're taking your budgeted figures and

1014
00:42:51,200 --> 00:42:54,000
applying assumptions to those figures

1015
00:42:54,000 --> 00:42:56,400
and then adding all those other uh

1016
00:42:56,400 --> 00:42:58,160
elements that we discussed relative to

1017
00:42:58,160 --> 00:43:01,119
level of service uh inflation

1018
00:43:01,119 --> 00:43:04,000
um and unfunded mandates on top of that.

1019
00:43:04,000 --> 00:43:06,000
So, that's something to think about as

1020
00:43:06,000 --> 00:43:09,200
we talk about uh impacts and uh the

1021
00:43:09,200 --> 00:43:12,720
trends within the general fund.

1022
00:43:12,720 --> 00:43:15,680
In addition, uh we we start with a $25

1023
00:43:15,680 --> 00:43:17,839
million fund balance of this is

1024
00:43:17,839 --> 00:43:19,280
unrestricted funds that we're saying,

1025
00:43:19,280 --> 00:43:25,520
"Hey, this is available to do with what we will relative to dedicate. You

1026
00:43:25,520 --> 00:43:27,359
could dedicate it to operations, which

1027
00:43:27,359 --> 00:43:29,599
we don't typically recommend. You can

1028
00:43:29,599 --> 00:43:32,240
fund capital improvements, whatever.

1029
00:43:32,240 --> 00:43:34,000
It's unrestricted."

1030
00:43:34,000 --> 00:43:35,440
So, that's our starting point. That's

1031
00:43:35,440 --> 00:43:37,280
what we're going to measure against our

1032
00:43:37,280 --> 00:43:40,240
yard stick when we when we look at um

1033
00:43:40,240 --> 00:43:43,920
the trend of our cash at the you know at

1034
00:43:43,920 --> 00:43:46,400
the end of each fiscal year.

1035
00:43:46,400 --> 00:43:48,720
We've also assumed uh that there would

1036
00:43:48,720 --> 00:43:51,040
be a tough administrative contribution.

1037
00:43:51,040 --> 00:43:53,520
Uh we know that's not finalized uh but

1038
00:43:53,520 --> 00:43:55,680
we did make some assumptions relative to

1039
00:43:55,680 --> 00:43:57,280
some revenue that might come into the

1040
00:43:57,280 --> 00:43:59,839
mall relative to that. starting off at

1041
00:43:59,839 --> 00:44:01,839
about 250,000 and then getting up to

1042
00:44:01,839 --> 00:44:05,920
500,000 in year five as that becomes uh

1043
00:44:05,920 --> 00:44:07,680
more refined than then we can make

1044
00:44:07,680 --> 00:44:09,280
assumptions or you can make assumptions.

1045
00:44:09,280 --> 00:44:10,000
>> It's tough.

1046
00:44:10,000 --> 00:44:12,240
>> Oh, sorry. Transportation utility fee.

1047
00:44:12,240 --> 00:44:13,280
>> Okay. Thank you.

1048
00:44:13,280 --> 00:44:16,079
>> So, you've probably noticed uh with the

1049
00:44:16,079 --> 00:44:18,079
legislature that there's been a a

1050
00:44:18,079 --> 00:44:20,640
concentration on this element relative

1051
00:44:20,640 --> 00:44:23,280
to what you can and cannot do. And in

1052
00:44:23,280 --> 00:44:25,440
this legislative session, they they

1053
00:44:25,440 --> 00:44:27,760
clearly articulated what you can do with

1054
00:44:27,760 --> 00:44:30,480
the transportation utility fee and put

1055
00:44:30,480 --> 00:44:33,040
some very detailed uh guardrails on that

1056
00:44:33,040 --> 00:44:36,240
which I think is very beneficial. Um uh

1057
00:44:36,240 --> 00:44:39,040
so so it uh can be used as a resource

1058
00:44:39,040 --> 00:44:41,760
within those parameters. Uh so many

1059
00:44:41,760 --> 00:44:44,400
entities are going through the

1060
00:44:44,400 --> 00:44:46,319
transportation utility fee exercise and

1061
00:44:46,319 --> 00:44:49,119
wanting to establish that fee.

1062
00:44:49,119 --> 00:44:51,040
We're also continuing the transfer

1063
00:44:51,040 --> 00:44:55,680
assumptions relative to um what goes out

1064
00:44:55,680 --> 00:44:58,240
of the general fund. For example, uh

1065
00:44:58,240 --> 00:45:00,400
debt service. We're we're perpetuating

1066
00:45:00,400 --> 00:45:01,760
those transfers and saying, "Hey, yeah,

1067
00:45:01,760 --> 00:45:03,040
the general fund's going to keep doing

1068
00:45:03,040 --> 00:45:06,079
that." Um but we did not uh do an

1069
00:45:06,079 --> 00:45:08,800
analysis of those other funds. So, uh,

1070
00:45:08,800 --> 00:45:11,359
we're perpetuating, uh, existing trends

1071
00:45:11,359 --> 00:45:13,760
and with Brandon's input and and, uh,

1072
00:45:13,760 --> 00:45:16,079
Brandon's input on what we want to

1073
00:45:16,079 --> 00:45:17,839
assume relative to those transfers just

1074
00:45:17,839 --> 00:45:19,040
to make sure that we're accounting for

1075
00:45:19,040 --> 00:45:22,079
that. But you could have, for example,

1076
00:45:22,079 --> 00:45:26,000
an analysis of, uh, sub funds um, that

1077
00:45:26,000 --> 00:45:28,000
say, hey, we need to transfer more out

1078
00:45:28,000 --> 00:45:29,359
of the general fund if we want to keep

1079
00:45:29,359 --> 00:45:31,520
that sustainable. That has not been done

1080
00:45:31,520 --> 00:45:33,839
here. So, we're isolating it to the

1081
00:45:33,839 --> 00:45:35,359
general fund and the services that are

1082
00:45:35,359 --> 00:45:38,000
covered in the general fund.

1083
00:45:38,000 --> 00:45:40,400
And then our target relative to our uh

1084
00:45:40,400 --> 00:45:44,480
fund balances, we're trying to see to um

1085
00:45:44,480 --> 00:45:48,720
achieve 25% of our revenues as our

1086
00:45:48,720 --> 00:45:51,359
target. Whatever we collect in general

1087
00:45:51,359 --> 00:45:54,000
fund revenues, take 25% of that and

1088
00:45:54,000 --> 00:45:55,760
that's what we'd carry over as a fund

1089
00:45:55,760 --> 00:45:58,480
balance which has been reduced. Uh

1090
00:45:58,480 --> 00:46:01,680
previously it was 35% that was paired

1091
00:46:01,680 --> 00:46:03,440
back to say hey no maybe that's a little

1092
00:46:03,440 --> 00:46:05,839
too much. So let's let's look at 25% as

1093
00:46:05,839 --> 00:46:08,319
a as a target there.

1094
00:46:08,319 --> 00:46:10,960
>> Fred, just to clarify, fund unrestricted

1095
00:46:10,960 --> 00:46:13,599
fund balance is part of our rainy day

1096
00:46:13,599 --> 00:46:14,960
funds essentially.

1097
00:46:14,960 --> 00:46:15,359
>> Yep.

1098
00:46:15,359 --> 00:46:17,119
>> Yeah. So again, that's something you

1099
00:46:17,119 --> 00:46:18,640
keep

1100
00:46:18,640 --> 00:46:22,720
uh to um some entities will use it for

1101
00:46:22,720 --> 00:46:25,760
um budgeting stabilization. For example,

1102
00:46:25,760 --> 00:46:28,720
if if we had an event like COVID where

1103
00:46:28,720 --> 00:46:30,640
uh there's substantial challenges

1104
00:46:30,640 --> 00:46:32,480
relative to revenues and expenses, you

1105
00:46:32,480 --> 00:46:34,319
call you you draw on that fund balance

1106
00:46:34,319 --> 00:46:36,400
to get you through that without taking

1107
00:46:36,400 --> 00:46:39,680
dramatic action in in a period of crisis

1108
00:46:39,680 --> 00:46:41,920
or we could have a a substantial capital

1109
00:46:41,920 --> 00:46:43,760
investment that's the general fund needs

1110
00:46:43,760 --> 00:46:46,560
to contribute to and pull from that. But

1111
00:46:46,560 --> 00:46:49,119
we reserve it for those unknowns that

1112
00:46:49,119 --> 00:46:52,240
rainy day fund and and to keep that uh

1113
00:46:52,240 --> 00:46:55,119
keep that in place. Another benefit is

1114
00:46:55,119 --> 00:46:57,839
um that also provides you some uh

1115
00:46:57,839 --> 00:46:59,839
benefit when you go to issue debt and

1116
00:46:59,839 --> 00:47:03,200
you uh speak with rating agencies and um

1117
00:47:03,200 --> 00:47:04,880
those types of entities. They'll look at

1118
00:47:04,880 --> 00:47:07,040
what you have relative to your general

1119
00:47:07,040 --> 00:47:10,160
fund balance say is that a positive or a

1120
00:47:10,160 --> 00:47:12,400
negative? Do you have enough there uh

1121
00:47:12,400 --> 00:47:13,920
relative to what you need? And that

1122
00:47:13,920 --> 00:47:16,240
would influence your your borrowing cost

1123
00:47:16,240 --> 00:47:20,079
if you were to uh utilize um the general

1124
00:47:20,079 --> 00:47:21,520
fund. Now, that's a little different

1125
00:47:21,520 --> 00:47:23,760
because uh you have multiple revenue

1126
00:47:23,760 --> 00:47:25,599
resources within your general fund like

1127
00:47:25,599 --> 00:47:27,680
sales tax revenues versus property tax.

1128
00:47:27,680 --> 00:47:29,920
So, there's a lot of nuance there, but

1129
00:47:29,920 --> 00:47:31,920
that that's also a benefit to that that

1130
00:47:31,920 --> 00:47:33,200
rainy day fund.

1131
00:47:33,200 --> 00:47:35,040
>> And Fred, if I can just clarify for the

1132
00:47:35,040 --> 00:47:37,359
benefit of the council, uh we'll be

1133
00:47:37,359 --> 00:47:38,720
talking a little bit more about

1134
00:47:38,720 --> 00:47:42,560
transportation utility fund and process

1135
00:47:42,560 --> 00:47:45,760
and study. Chris will be talking about

1136
00:47:45,760 --> 00:47:48,079
that a little bit later. That being

1137
00:47:48,079 --> 00:47:51,280
said, um wanted to make sure that you

1138
00:47:51,280 --> 00:47:53,440
were aware that it was included in this

1139
00:47:53,440 --> 00:47:55,040
study

1140
00:47:55,040 --> 00:47:56,960
essentially to show that we we tried to

1141
00:47:56,960 --> 00:47:59,200
think about this as comprehensively as

1142
00:47:59,200 --> 00:48:01,200
possible.

1143
00:48:01,200 --> 00:48:03,040
>> We talked about impact fees earlier. Is

1144
00:48:03,040 --> 00:48:05,359
that included in that as well or is that

1145
00:48:05,359 --> 00:48:08,319
>> the impact fees be addressed here? So

1146
00:48:08,319 --> 00:48:11,839
what we're isolating in this analysis is

1147
00:48:11,839 --> 00:48:14,000
the general fund portion of those

1148
00:48:14,000 --> 00:48:16,000
projects. So, if we had a onetime

1149
00:48:16,000 --> 00:48:18,400
investment that's required, we'd account

1150
00:48:18,400 --> 00:48:20,400
for impact fees. If that was covering

1151
00:48:20,400 --> 00:48:23,280
50% or 80% of the project, let's shave

1152
00:48:23,280 --> 00:48:25,760
off that cost, exclude it, and only

1153
00:48:25,760 --> 00:48:28,640
include the remaining percentage in the

1154
00:48:28,640 --> 00:48:30,640
general fund analysis. So, that's an

1155
00:48:30,640 --> 00:48:32,319
example of something that's isolated.

1156
00:48:32,319 --> 00:48:36,790
So, as an example, Jeff

1157
00:48:36,800 --> 00:48:39,440
expansion of the police station here and

1158
00:48:39,440 --> 00:48:42,079
the and the remodel here. We take

1159
00:48:42,079 --> 00:48:44,800
whatever we can from police impact fees

1160
00:48:44,800 --> 00:48:47,119
to contribute towards it, but obviously

1161
00:48:47,119 --> 00:48:49,040
the bulk of it is covered from our

1162
00:48:49,040 --> 00:48:51,760
general fund revenues. So that's the

1163
00:48:51,760 --> 00:48:54,800
portion that was uh taken into account

1164
00:48:54,800 --> 00:48:58,870
in this study.

1165
00:48:58,880 --> 00:49:01,359
All righty. So here's a lot of numbers.

1166
00:49:01,359 --> 00:49:04,079
Um what this is highlighting is the

1167
00:49:04,079 --> 00:49:06,079
assumptions and how we pull that into

1168
00:49:06,079 --> 00:49:10,079
our model. So um this is showing in our

1169
00:49:10,079 --> 00:49:12,319
model the specific line items that we

1170
00:49:12,319 --> 00:49:15,040
have identified relative to the revenues

1171
00:49:15,040 --> 00:49:16,640
that come into the model and the

1172
00:49:16,640 --> 00:49:19,280
expenses. So the expenses we've

1173
00:49:19,280 --> 00:49:21,920
highlighted down at the bottom here. But

1174
00:49:21,920 --> 00:49:23,599
for the majority of the revenues we're

1175
00:49:23,599 --> 00:49:26,240
assuming uh no growth. We're saying okay

1176
00:49:26,240 --> 00:49:27,520
they're they're not really going to

1177
00:49:27,520 --> 00:49:30,400
grow. Uh we are going to assume some

1178
00:49:30,400 --> 00:49:32,400
growth for example in sales tax revenue.

1179
00:49:32,400 --> 00:49:34,480
If you recall back to Lara's slides and

1180
00:49:34,480 --> 00:49:36,559
I'll show you another slide, that is a

1181
00:49:36,559 --> 00:49:38,720
big chunk of the revenue you receive.

1182
00:49:38,720 --> 00:49:41,599
And so changes in that line item have a

1183
00:49:41,599 --> 00:49:45,040
huge impact and um your your

1184
00:49:45,040 --> 00:49:46,800
sustainabilities.

1185
00:49:46,800 --> 00:49:48,640
What we saw with regards to sales tax

1186
00:49:48,640 --> 00:49:51,440
revenues is historically you've had a

1187
00:49:51,440 --> 00:49:54,960
higher growth here than 3%. But when you

1188
00:49:54,960 --> 00:49:56,640
look at the last two years of actuals,

1189
00:49:56,640 --> 00:49:58,559
you're seeing we're seeing a plateau of

1190
00:49:58,559 --> 00:50:02,000
that where um you could have an instance

1191
00:50:02,000 --> 00:50:03,599
where sales tax revenues are not

1192
00:50:03,599 --> 00:50:06,240
growing. Um even the 3% may be

1193
00:50:06,240 --> 00:50:08,640
aggressive, right? That you get to

1194
00:50:08,640 --> 00:50:12,240
essentially your um your limit the the

1195
00:50:12,240 --> 00:50:15,839
public's limit relative to to buying uh

1196
00:50:15,839 --> 00:50:17,920
spending and you're not going to see as

1197
00:50:17,920 --> 00:50:19,760
much growth there unless there's

1198
00:50:19,760 --> 00:50:21,359
redevelopment, economic development

1199
00:50:21,359 --> 00:50:23,200
changes, those types of things. ask a

1200
00:50:23,200 --> 00:50:24,480
stupid question.

1201
00:50:24,480 --> 00:50:26,400
>> So, food places, food joints,

1202
00:50:26,400 --> 00:50:28,880
restaurants, everything. Do we get sales

1203
00:50:28,880 --> 00:50:32,960
tax or do we get the um tourism whatever

1204
00:50:32,960 --> 00:50:33,760
tax?

1205
00:50:33,760 --> 00:50:36,079
>> You do get sales tax and on some

1206
00:50:36,079 --> 00:50:38,079
businesses you get both. You'd have a a

1207
00:50:38,079 --> 00:50:40,319
tourism tax on top of that.

1208
00:50:40,319 --> 00:50:42,720
>> Um but yes, all of all of your eating

1209
00:50:42,720 --> 00:50:43,599
establishments

1210
00:50:43,599 --> 00:50:45,359
>> that goes in our I guess that I mean

1211
00:50:45,359 --> 00:50:47,040
that goes in our general fund. That's

1212
00:50:47,040 --> 00:50:48,800
>> we do not receive that else. Okay.

1213
00:50:48,800 --> 00:50:52,319
>> You don't receive the the one extra 1%

1214
00:50:52,319 --> 00:50:53,920
restaurant tax.

1215
00:50:53,920 --> 00:50:55,119
>> We don't get that.

1216
00:50:55,119 --> 00:50:55,760
>> Okay. We don't

1217
00:50:55,760 --> 00:50:58,400
>> we do get 1% sales tax, right?

1218
00:50:58,400 --> 00:51:00,880
>> Yes. There's a sales tax portion

1219
00:51:00,880 --> 00:51:03,440
>> that component. We get 1% in our general

1220
00:51:03,440 --> 00:51:06,079
fund and 1% in the

1221
00:51:06,079 --> 00:51:07,440
>> I believe it goes to the county.

1222
00:51:07,440 --> 00:51:07,760
>> Yes.

1223
00:51:07,760 --> 00:51:10,000
>> To the county. And that's the one that

1224
00:51:10,000 --> 00:51:11,839
we don't typically get back when we

1225
00:51:11,839 --> 00:51:12,880
begin.

1226
00:51:12,880 --> 00:51:13,920
>> Correct.

1227
00:51:13,920 --> 00:51:15,680
>> Yes.

1228
00:51:15,680 --> 00:51:17,040
Can you tell us what that you talked

1229
00:51:17,040 --> 00:51:19,359
about that plateau for uh sales tax

1230
00:51:19,359 --> 00:51:20,640
revenue over the last couple of years.

1231
00:51:20,640 --> 00:51:21,760
What does that actually look like? What

1232
00:51:21,760 --> 00:51:23,040
does that mean for us? It means we

1233
00:51:23,040 --> 00:51:25,119
didn't get 7% that means we got 3%. It

1234
00:51:25,119 --> 00:51:26,720
means we got 1%.

1235
00:51:26,720 --> 00:51:27,440
>> So

1236
00:51:27,440 --> 00:51:29,040
>> yeah, let me see what our

1237
00:51:29,040 --> 00:51:30,319
>> I don't need specifics. Just like

1238
00:51:30,319 --> 00:51:31,680
general trend.

1239
00:51:31,680 --> 00:51:33,440
>> One was negative.

1240
00:51:33,440 --> 00:51:34,000
>> You say one.

1241
00:51:34,000 --> 00:51:37,200
>> I don't remember if that was 24 or five.

1242
00:51:37,200 --> 00:51:40,400
Um I want to say it was 24. I mean five

1243
00:51:40,400 --> 00:51:42,000
last year. I want to say it was negative

1244
00:51:42,000 --> 00:51:43,200
last year.

1245
00:51:43,200 --> 00:51:46,480
>> December to December. 24. So 23 actuals

1246
00:51:46,480 --> 00:51:49,599
you were at 32 million and then 24

1247
00:51:49,599 --> 00:51:53,599
actuals you were 300,000 less than. So

1248
00:51:53,599 --> 00:51:58,160
you went from from 2022 23 and 24 you

1249
00:51:58,160 --> 00:52:00,880
hovered around 31.7

1250
00:52:00,880 --> 00:52:05,119
to $32 million. So actually 3 years of

1251
00:52:05,119 --> 00:52:06,800
flat

1252
00:52:06,800 --> 00:52:09,200
um really no growth in sales tax

1253
00:52:09,200 --> 00:52:11,599
revenues. Now, prior to that, so when

1254
00:52:11,599 --> 00:52:13,440
you look at 2019 actuals, you were at

1255
00:52:13,440 --> 00:52:19,359
$22.7 million taxable sales. And so you did grow when you when you went from

1256
00:52:19,359 --> 00:52:23,839
2019 to 2021 and then to 2022, yes, we

1257
00:52:23,839 --> 00:52:26,720
were growing. Then 2022 hits and you did

1258
00:52:26,720 --> 00:52:29,680
not see really any growth in taxable

1259
00:52:29,680 --> 00:52:33,440
sales. uh through 24 actuals and then we

1260
00:52:33,440 --> 00:52:36,240
budgeted to be consistent at about $32

1261
00:52:36,240 --> 00:52:39,200
million in sales tax revenues and and

1262
00:52:39,200 --> 00:52:41,760
the same with uh 26. We just did a

1263
00:52:41,760 --> 00:52:44,640
slight increase in sales tax but really

1264
00:52:44,640 --> 00:52:48,160
no growth. So we're programming 3% to

1265
00:52:48,160 --> 00:52:51,359
the model which could be aggressive. It

1266
00:52:51,359 --> 00:52:54,559
could be that you again plateau and have

1267
00:52:54,559 --> 00:52:58,880
no growth in taxable sales or as 1% you

1268
00:52:58,880 --> 00:53:02,800
know that we see this this grow. Um, so

1269
00:53:02,800 --> 00:53:04,559
what what that highlights again when I

1270
00:53:04,559 --> 00:53:06,400
do these types of studies because

1271
00:53:06,400 --> 00:53:08,640
there's so many moving parts in a

1272
00:53:08,640 --> 00:53:10,240
general fund, so many services that

1273
00:53:10,240 --> 00:53:12,800
you're providing, the key to me is

1274
00:53:12,800 --> 00:53:15,359
identifying where does our risk lie?

1275
00:53:15,359 --> 00:53:18,319
What what factors are we relying on? And

1276
00:53:18,319 --> 00:53:20,319
is there a risk and is it substantial?

1277
00:53:20,319 --> 00:53:22,240
Is it minimal? Do we want to do anything

1278
00:53:22,240 --> 00:53:24,160
about that? Because I'm going to show

1279
00:53:24,160 --> 00:53:26,480
you slides that are really scary, right,

1280
00:53:26,480 --> 00:53:28,079
relative to these benchmarks. But that's

1281
00:53:28,079 --> 00:53:30,319
really intended to help us say what are

1282
00:53:30,319 --> 00:53:32,160
the risks we're trying to mitigate here?

1283
00:53:32,160 --> 00:53:34,240
What are the factors influencing

1284
00:53:34,240 --> 00:53:36,160
sustainability and how do we tackle

1285
00:53:36,160 --> 00:53:37,680
those problems? We're not going to

1286
00:53:37,680 --> 00:53:40,800
tackle everything all at once, but there

1287
00:53:40,800 --> 00:53:43,599
there's action that we can take to help

1288
00:53:43,599 --> 00:53:46,720
create sustainability and reduce risk in

1289
00:53:46,720 --> 00:53:48,800
our model. And that's that's what I how

1290
00:53:48,800 --> 00:53:51,119
I view it. Again, like any investment

1291
00:53:51,119 --> 00:53:54,720
port portfolio, our objective is to say,

1292
00:53:54,720 --> 00:53:57,359
how do we reduce risk and and are what

1293
00:53:57,359 --> 00:53:58,960
are those risk factors and do we want to

1294
00:53:58,960 --> 00:54:01,440
take action? So,

1295
00:54:01,440 --> 00:54:04,160
all righty. Um,

1296
00:54:04,160 --> 00:54:07,200
okay. So, here we've uh again our

1297
00:54:07,200 --> 00:54:08,720
primary assumption has to do with sales

1298
00:54:08,720 --> 00:54:10,559
tax revenues. The other revenues we're

1299
00:54:10,559 --> 00:54:14,079
keeping pretty constant. Um again there

1300
00:54:14,079 --> 00:54:16,559
are fluctuations that we've seen um and

1301
00:54:16,559 --> 00:54:19,280
we can play around with those but

1302
00:54:19,280 --> 00:54:21,599
franchise tax is in a similar boat here

1303
00:54:21,599 --> 00:54:24,160
where um

1304
00:54:24,160 --> 00:54:26,400
you're likely hitting a plateau and

1305
00:54:26,400 --> 00:54:28,240
we're accounting for that in this in

1306
00:54:28,240 --> 00:54:30,640
this instance. Um and then on the

1307
00:54:30,640 --> 00:54:32,640
property tax that that top line item

1308
00:54:32,640 --> 00:54:34,720
where we see where we show new property

1309
00:54:34,720 --> 00:54:37,599
tax revenues that that's not a

1310
00:54:37,599 --> 00:54:40,079
reflection of new growth that's going to

1311
00:54:40,079 --> 00:54:41,839
happen naturally. Right? So our model

1312
00:54:41,839 --> 00:54:45,599
accounts for an assumption within the

1313
00:54:45,599 --> 00:54:48,079
valuation calculation that that assumes

1314
00:54:48,079 --> 00:54:50,559
some new growth. Every year you get a

1315
00:54:50,559 --> 00:54:52,559
little bit of new growth in your uh

1316
00:54:52,559 --> 00:54:55,200
taxable value. What this is saying is

1317
00:54:55,200 --> 00:54:56,880
over and above that are we going to

1318
00:54:56,880 --> 00:54:58,960
assume any increase to our revenue

1319
00:54:58,960 --> 00:55:00,400
generation? Meaning we're going to

1320
00:55:00,400 --> 00:55:02,640
change our certified tax rate to

1321
00:55:02,640 --> 00:55:05,839
generate more revenue than what uh the

1322
00:55:05,839 --> 00:55:07,680
mod or the truth and taxation and

1323
00:55:07,680 --> 00:55:10,160
certified tax rate process would allow.

1324
00:55:10,160 --> 00:55:11,760
That's that line item. So, we're saying

1325
00:55:11,760 --> 00:55:13,599
no, we're the baseline is do nothing

1326
00:55:13,599 --> 00:55:16,079
with property tax except let let it grow

1327
00:55:16,079 --> 00:55:19,119
naturally. Let's uh add some revenue

1328
00:55:19,119 --> 00:55:22,800
with regards to sales tax. Um and then

1329
00:55:22,800 --> 00:55:25,520
now let's start looking at our expenses.

1330
00:55:25,520 --> 00:55:27,920
So down here at the bottom

1331
00:55:27,920 --> 00:55:30,240
uh we've isolated some specific uh

1332
00:55:30,240 --> 00:55:32,559
variables that we wanted to manipulate.

1333
00:55:32,559 --> 00:55:34,880
So for personnel, for example, we're

1334
00:55:34,880 --> 00:55:37,920
applying a 5% inflationary assumption,

1335
00:55:37,920 --> 00:55:41,839
which is higher than the CPI that Laura

1336
00:55:41,839 --> 00:55:44,000
referred to, that hovers around 3 to 3

1337
00:55:44,000 --> 00:55:46,720
and 1.5%. You look at other cost indices

1338
00:55:46,720 --> 00:55:51,440
like a municipal cost index or uh uh um

1339
00:55:51,440 --> 00:55:53,359
construction cost index, those are

1340
00:55:53,359 --> 00:55:55,520
similar. We see about a 3 to three and a

1341
00:55:55,520 --> 00:55:57,760
half. Maybe the construction cost index

1342
00:55:57,760 --> 00:56:00,000
is a little bit higher. Those are

1343
00:56:00,000 --> 00:56:02,240
national trends. uh when you look

1344
00:56:02,240 --> 00:56:04,240
locally your construction cost index can

1345
00:56:04,240 --> 00:56:07,040
be higher than that. Um but here what

1346
00:56:07,040 --> 00:56:09,359
we're saying is we assume that this

1347
00:56:09,359 --> 00:56:11,440
specific specific line item is going to

1348
00:56:11,440 --> 00:56:13,440
grow at a higher rate than general

1349
00:56:13,440 --> 00:56:17,280
inflation which is typical. Uh usually

1350
00:56:17,280 --> 00:56:20,880
personnel um there is higher pressure

1351
00:56:20,880 --> 00:56:22,880
and that's driven by not only salary

1352
00:56:22,880 --> 00:56:25,599
cost but the cost of benefits over time

1353
00:56:25,599 --> 00:56:28,240
that that just gets more costly. There's

1354
00:56:28,240 --> 00:56:31,520
just a lot of pressure there. Um then we

1355
00:56:31,520 --> 00:56:34,000
have assumptions relative to uh public

1356
00:56:34,000 --> 00:56:36,319
safety, our sworn officers. Um this is

1357
00:56:36,319 --> 00:56:38,000
information provided by staff to say hey

1358
00:56:38,000 --> 00:56:39,680
that's going to in order to keep up with

1359
00:56:39,680 --> 00:56:43,839
the market and pressure to retain um

1360
00:56:43,839 --> 00:56:46,160
officers and keep the level of service.

1361
00:56:46,160 --> 00:56:50,000
Uh there's a a need to um have a higher

1362
00:56:50,000 --> 00:56:52,960
growth on that side. This is also fairly

1363
00:56:52,960 --> 00:56:56,319
common. Um I've been in many um meetings

1364
00:56:56,319 --> 00:56:58,880
with entities where one of their primary

1365
00:56:58,880 --> 00:57:01,920
fears is just losing officers um and

1366
00:57:01,920 --> 00:57:04,240
firefighters to other locations

1367
00:57:04,240 --> 00:57:05,839
essentially training them and then

1368
00:57:05,839 --> 00:57:07,200
letting them go somewhere else where

1369
00:57:07,200 --> 00:57:08,799
they get more money. There's just a lot

1370
00:57:08,799 --> 00:57:11,440
of pressure there relative to that uh

1371
00:57:11,440 --> 00:57:13,760
service operation.

1372
00:57:13,760 --> 00:57:16,720
We also had input relative to legal to

1373
00:57:16,720 --> 00:57:18,559
have a little bit higher growth on that

1374
00:57:18,559 --> 00:57:22,559
side. Um uh so you can see here based on

1375
00:57:22,559 --> 00:57:25,520
input uh we're able to isolate specific

1376
00:57:25,520 --> 00:57:27,440
line items and apply an inflationary

1377
00:57:27,440 --> 00:57:30,559
pressure and then generally speaking uh

1378
00:57:30,559 --> 00:57:33,200
outside of those specifics we apply

1379
00:57:33,200 --> 00:57:36,240
again that 3% operational expenditure

1380
00:57:36,240 --> 00:57:38,000
growth. So any line item that wasn't

1381
00:57:38,000 --> 00:57:39,760
specifically identified we apply just

1382
00:57:39,760 --> 00:57:41,920
that general inflationary number and

1383
00:57:41,920 --> 00:57:44,400
grow that. Uh so those are the

1384
00:57:44,400 --> 00:57:47,680
assumptions there uh as it relates to

1385
00:57:47,680 --> 00:57:48,160
this. Yeah.

1386
00:57:48,160 --> 00:57:51,040
>> Just before we move on too far from uh

1387
00:57:51,040 --> 00:57:52,880
revenue assumptions, could you or

1388
00:57:52,880 --> 00:57:56,000
Brandon speak to the utopia rebate uh

1389
00:57:56,000 --> 00:57:59,119
figure uh which is 7% there?

1390
00:57:59,119 --> 00:58:00,640
>> Yes.

1391
00:58:00,640 --> 00:58:02,160
Uh

1392
00:58:02,160 --> 00:58:04,799
I mean I

1393
00:58:04,799 --> 00:58:11,200
>> Yeah. So that uh basically Utopia has grown and captured more of the

1394
00:58:11,200 --> 00:58:13,920
market and their infrastructure is going

1395
00:58:13,920 --> 00:58:17,520
past um essentially all the addresses

1396
00:58:17,520 --> 00:58:21,359
within its member cities now. And so

1397
00:58:21,359 --> 00:58:23,359
that percentage that we assumed in there

1398
00:58:23,359 --> 00:58:25,760
has been based off of conversations with

1399
00:58:25,760 --> 00:58:28,960
Utopia and and really kind of looking at

1400
00:58:28,960 --> 00:58:30,880
the last handful of years they've

1401
00:58:30,880 --> 00:58:34,480
increased what they pay back to the

1402
00:58:34,480 --> 00:58:38,480
city. So the city still pays

1403
00:58:38,480 --> 00:58:42,319
um more towards the UT utopia debt than

1404
00:58:42,319 --> 00:58:45,440
we receive. I think that net negative is

1405
00:58:45,440 --> 00:58:47,599
about roughly around two and a half

1406
00:58:47,599 --> 00:58:49,839
million dollars a year.

1407
00:58:49,839 --> 00:58:52,960
Um, but every indication we get from

1408
00:58:52,960 --> 00:58:55,440
Utopia and Roger Timberman, the director

1409
00:58:55,440 --> 00:58:58,400
there, is that that

1410
00:58:58,400 --> 00:59:00,160
things are looking like they will

1411
00:59:00,160 --> 00:59:03,599
continue to narrow that gap every year

1412
00:59:03,599 --> 00:59:05,839
um until

1413
00:59:05,839 --> 00:59:07,760
well, right now they're saying that they

1414
00:59:07,760 --> 00:59:09,280
think that they'll be able to fully

1415
00:59:09,280 --> 00:59:14,000
cover that uh debt impact by about the

1416
00:59:14,000 --> 00:59:17,359
time that their debt falls off. But

1417
00:59:17,359 --> 00:59:19,520
they're also keeping on their books that

1418
00:59:19,520 --> 00:59:21,839
liability. So they'll continue to pay us

1419
00:59:21,839 --> 00:59:27,270
back uh into the future.

1420
00:59:27,280 --> 00:59:32,319
» The current falls off 2039, right?

1421
00:59:32,319 --> 00:59:32,880
>> And so

1422
00:59:32,880 --> 00:59:34,400
>> 2040.

1423
00:59:34,400 --> 00:59:36,880
>> Okay. 2040 or fiscal 20.

1424
00:59:36,880 --> 00:59:37,200
>> Yes.

1425
00:59:37,200 --> 00:59:38,640
>> Fiscal.

1426
00:59:38,640 --> 00:59:40,480
>> There's a moment in time where the

1427
00:59:40,480 --> 00:59:42,480
amount we pay and the amount we get back

1428
00:59:42,480 --> 00:59:44,240
break even. break even

1429
00:59:44,240 --> 00:59:47,200
>> and then we start receiving more money.

1430
00:59:47,200 --> 00:59:49,280
And about what year do we think that's

1431
00:59:49,280 --> 00:59:53,040
going to be break even?

1432
00:59:53,040 --> 00:59:56,640
>> They say no later than 2040.

1433
00:59:56,640 --> 00:59:58,640
Um, but I've heard I've heard of

1434
00:59:58,640 --> 01:00:02,880
projections as as aggressive as in about

1435
01:00:02,880 --> 01:00:10,960
seven years. So it just depends if their projections are

1436
01:00:10,960 --> 01:00:12,559
aggressive or not and or [clears throat]

1437
01:00:12,559 --> 01:00:14,240
if they just stay on the trend that they

1438
01:00:14,240 --> 01:00:17,359
have been for the last handful of years.

1439
01:00:17,359 --> 01:00:19,839
So with the 7% that we're just putting

1440
01:00:19,839 --> 01:00:21,920
that assumption in the model, but that

1441
01:00:21,920 --> 01:00:24,319
7% is off of two and a half million. Is

1442
01:00:24,319 --> 01:00:25,839
that what you said?

1443
01:00:25,839 --> 01:00:26,720
>> The growth

1444
01:00:26,720 --> 01:00:29,680
>> it's growth what we receive which I

1445
01:00:29,680 --> 01:00:31,920
think we're at about 1 million or 1.1. I

1446
01:00:31,920 --> 01:00:33,359
do have a slide on that in my

1447
01:00:33,359 --> 01:00:34,400
presentation.

1448
01:00:34,400 --> 01:00:35,839
>> I just wanted to get the scale. We're

1449
01:00:35,839 --> 01:00:37,599
talking about less than $100,000.

1450
01:00:37,599 --> 01:00:41,440
>> Yes. Yeah. I show your your um rebate is

1451
01:00:41,440 --> 01:00:44,319
1.1 and then it grows to one and a half

1452
01:00:44,319 --> 01:00:47,520
within the 5year based on that 7%

1453
01:00:47,520 --> 01:00:53,599
increase. Whereas if I look at the um

1454
01:00:53,599 --> 01:00:57,200
see our

1455
01:00:57,200 --> 01:00:59,200
transfer is that would that be the

1456
01:00:59,200 --> 01:01:03,760
offsetting cost utopia pledge transfer

1457
01:01:03,760 --> 01:01:04,559
>> 3.3

1458
01:01:04,559 --> 01:01:07,280
>> yeah it goes up that's

1459
01:01:07,280 --> 01:01:10,880
>> yes yep so we have it at 3.6 in the 26

1460
01:01:10,880 --> 01:01:13,920
and that grows only by 2% so within the

1461
01:01:13,920 --> 01:01:16,079
five years there's

1462
01:01:16,079 --> 01:01:18,480
a small number in the Yes,

1463
01:01:18,480 --> 01:01:20,799
>> percentage looks big, number is not as

1464
01:01:20,799 --> 01:01:21,119
small

1465
01:01:21,119 --> 01:01:23,359
>> and it's nothing but I mean it can it's

1466
01:01:23,359 --> 01:01:26,079
only going to get better hopefully.

1467
01:01:26,079 --> 01:01:28,160
>> Yes. So

1468
01:01:28,160 --> 01:01:30,960
>> yeah, every again because because

1469
01:01:30,960 --> 01:01:33,599
they're going in front of every address

1470
01:01:33,599 --> 01:01:35,920
now where before they weren't, their

1471
01:01:35,920 --> 01:01:39,359
market is bigger and they've been even

1472
01:01:39,359 --> 01:01:42,160
with that increasing their market

1473
01:01:42,160 --> 01:01:44,720
capture from year and they're right at

1474
01:01:44,720 --> 01:01:46,559
about 40%

1475
01:01:46,559 --> 01:01:51,200
of of ORUM residents uh use the Utopia 5

1476
01:01:51,200 --> 01:01:52,160
network.

1477
01:01:52,160 --> 01:01:53,680
>> Sorry to back you up. If there was

1478
01:01:53,680 --> 01:01:55,520
anything else on I did a question.

1479
01:01:55,520 --> 01:01:56,400
>> Yes. Go

1480
01:01:56,400 --> 01:01:58,000
>> just on the senior citizens operational

1481
01:01:58,000 --> 01:02:00,000
expenditure. That's a why is it 10%. Can

1482
01:02:00,000 --> 01:02:01,760
you just help class understand that a

1483
01:02:01,760 --> 01:02:05,510
little bit?

1484
01:02:05,520 --> 01:02:12,710
» My notes. Um,

1485
01:02:12,720 --> 01:02:15,520
» so usually this is just again input from

1486
01:02:15,520 --> 01:02:21,040
staff on um if they felt we needed to

1487
01:02:21,040 --> 01:02:23,680
have more increase than just

1488
01:02:23,680 --> 01:02:25,839
inflationary increase to maintain the

1489
01:02:25,839 --> 01:02:27,520
level of service that is provided. So

1490
01:02:27,520 --> 01:02:29,920
essentially saying we're already too

1491
01:02:29,920 --> 01:02:34,400
skinny and we need more than just 3% in

1492
01:02:34,400 --> 01:02:37,760
our expense growth rate. Uh so that's

1493
01:02:37,760 --> 01:02:39,280
where we would would have applied that

1494
01:02:39,280 --> 01:02:42,240
say hey okay let's program that 10%. So

1495
01:02:42,240 --> 01:02:46,079
our questions to staff would centered on

1496
01:02:46,079 --> 01:02:49,440
um really those buckets of of impact

1497
01:02:49,440 --> 01:02:51,920
saying okay is inflationary pressure

1498
01:02:51,920 --> 01:02:54,160
sufficient for what you're providing?

1499
01:02:54,160 --> 01:02:56,000
And if they said yes then we'd apply the

1500
01:02:56,000 --> 01:02:58,480
3%. if they said no. In this case,

1501
01:02:58,480 --> 01:03:00,480
senior citizens saying saying no, we

1502
01:03:00,480 --> 01:03:02,960
need we need more. We're already too

1503
01:03:02,960 --> 01:03:04,640
skinny and and we think our expenses

1504
01:03:04,640 --> 01:03:06,319
need to grow at a higher rate and that's

1505
01:03:06,319 --> 01:03:07,440
what this represents.

1506
01:03:07,440 --> 01:03:08,640
>> That looks like a big number, but in

1507
01:03:08,640 --> 01:03:09,920
terms of the overall impact on the

1508
01:03:09,920 --> 01:03:11,040
budget, it could be very very small.

1509
01:03:11,040 --> 01:03:13,680
>> Yes. Same same thing. The scale is

1510
01:03:13,680 --> 01:03:14,240
small.

1511
01:03:14,240 --> 01:03:15,599
>> Is that Oh,

1512
01:03:15,599 --> 01:03:19,119
>> well, and I'll but I'll also say that uh

1513
01:03:19,119 --> 01:03:25,440
our senior citizen center is also it's a regional draw. So because it's so

1514
01:03:25,440 --> 01:03:26,880
successful, because we have so much

1515
01:03:26,880 --> 01:03:29,280
programming, we get more people that

1516
01:03:29,280 --> 01:03:33,200
come in. And then we also have um

1517
01:03:33,200 --> 01:03:36,240
internalized the the food preparation

1518
01:03:36,240 --> 01:03:40,720
and most other senior centers don't do that.

1519
01:03:40,720 --> 01:03:43,359
Now, that's a higher level of service.

1520
01:03:43,359 --> 01:03:46,480
Residents get better food. Um but, you

1521
01:03:46,480 --> 01:03:48,079
know, there's there's a cost to that

1522
01:03:48,079 --> 01:03:49,520
operationally.

1523
01:03:49,520 --> 01:03:51,039
>> It might also be reasonable to assume

1524
01:03:51,039 --> 01:03:52,319
that over time we will have more

1525
01:03:52,319 --> 01:03:54,799
seniors.

1526
01:03:54,799 --> 01:03:57,920
bunch of baby boomers coming.

1527
01:03:57,920 --> 01:04:01,039
>> We're all getting up there.

1528
01:04:01,039 --> 01:04:04,400
>> It also might be a factor too of in the

1529
01:04:04,400 --> 01:04:06,720
'9s we built that building. We've done

1530
01:04:06,720 --> 01:04:09,039
pretty good job of maintaining it, but

1531
01:04:09,039 --> 01:04:11,680
we suspect that that'll be one of our

1532
01:04:11,680 --> 01:04:13,359
older buildings that may need some more

1533
01:04:13,359 --> 01:04:15,440
attention relative to other buildings

1534
01:04:15,440 --> 01:04:16,000
moving forward.

1535
01:04:16,000 --> 01:04:17,200
>> And I guess that was going to be my

1536
01:04:17,200 --> 01:04:18,960
question. Is there a syncing fund that

1537
01:04:18,960 --> 01:04:22,319
we're using for um anticipated capital

1538
01:04:22,319 --> 01:04:24,559
expenses through that?

1539
01:04:24,559 --> 01:04:26,880
>> Is that part of it or not? Is that

1540
01:04:26,880 --> 01:04:28,559
purely operations?

1541
01:04:28,559 --> 01:04:31,680
>> Yes, that that 10% is operations.

1542
01:04:31,680 --> 01:04:33,039
>> So no syncing fund. It's not the

1543
01:04:33,039 --> 01:04:33,760
syncing. Okay.

1544
01:04:33,760 --> 01:04:35,920
>> So it's not capital replacement for

1545
01:04:35,920 --> 01:04:38,240
there's just our fund balance which you

1546
01:04:38,240 --> 01:04:39,839
you've seen us come with some budget

1547
01:04:39,839 --> 01:04:41,599
amendments

1548
01:04:41,599 --> 01:04:42,960
killers

1549
01:04:42,960 --> 01:04:44,880
>> porings. Okay. That's right.

1550
01:04:44,880 --> 01:04:45,760
>> So that's not

1551
01:04:45,760 --> 01:04:47,839
>> you that are using some of that. So

1552
01:04:47,839 --> 01:04:49,760
>> and I don't think in our onetime expense

1553
01:04:49,760 --> 01:04:52,480
we have anything related to

1554
01:04:52,480 --> 01:04:55,200
the center. So no

1555
01:04:55,200 --> 01:04:56,240
>> I mean

1556
01:04:56,240 --> 01:04:58,720
>> this ne the next slide it'll talk about

1557
01:04:58,720 --> 01:05:01,760
that but yeah there's no

1558
01:05:01,760 --> 01:05:03,039
>> we have done some significant

1559
01:05:03,039 --> 01:05:03,599
improvements.

1560
01:05:03,599 --> 01:05:10,789
>> We have two years.

1561
01:05:10,799 --> 01:05:13,920
» Any other questions on this slide? So

1562
01:05:13,920 --> 01:05:15,680
the capital expenditure, average annual

1563
01:05:15,680 --> 01:05:17,200
growth, that's really to capture the

1564
01:05:17,200 --> 01:05:19,680
difference between those indices

1565
01:05:19,680 --> 01:05:21,839
relative to operational cost versus

1566
01:05:21,839 --> 01:05:23,839
capital cost. Typically your

1567
01:05:23,839 --> 01:05:26,559
construction cost index is higher. This

1568
01:05:26,559 --> 01:05:29,520
wouldn't reflect um

1569
01:05:29,520 --> 01:05:36,079
again probably from 20 uh 19 to 2023 24

1570
01:05:36,079 --> 01:05:38,880
there was huge inflationary pressure

1571
01:05:38,880 --> 01:05:40,880
relative to

1572
01:05:40,880 --> 01:05:44,000
um construction costs within Utah. So

1573
01:05:44,000 --> 01:05:48,079
this is more of an average. So if we saw

1574
01:05:48,079 --> 01:05:49,839
if if there was a substantial

1575
01:05:49,839 --> 01:05:52,240
inflationary pressure this I'd say hey

1576
01:05:52,240 --> 01:05:53,760
that's something you can think about

1577
01:05:53,760 --> 01:05:56,880
right that up but right now the model is

1578
01:05:56,880 --> 01:05:59,680
intended to cover at least average

1579
01:05:59,680 --> 01:06:02,000
inflationary assumptions and see what

1580
01:06:02,000 --> 01:06:04,160
happens in the model when we again lay

1581
01:06:04,160 --> 01:06:05,599
off each other

1582
01:06:05,599 --> 01:06:07,680
>> and I'm sorry to be that person. You got

1583
01:06:07,680 --> 01:06:08,880
about 20 minutes.

1584
01:06:08,880 --> 01:06:10,000
>> Okay.

1585
01:06:10,000 --> 01:06:11,520
>> Well, stop asking question. [laughter]

1586
01:06:11,520 --> 01:06:14,880
>> No, no, no. We need to ask questions.

1587
01:06:14,880 --> 01:06:17,520
And uh yeah due to the complexity of

1588
01:06:17,520 --> 01:06:19,359
this again the idea here is to get

1589
01:06:19,359 --> 01:06:22,079
feedback and we can iterate on this

1590
01:06:22,079 --> 01:06:24,559
exercise. You know this this model is

1591
01:06:24,559 --> 01:06:27,680
supposed to be lineage. All righty. Uh

1592
01:06:27,680 --> 01:06:30,079
let's let's talk about some of the um

1593
01:06:30,079 --> 01:06:32,640
new or unfunded one-time expenses and

1594
01:06:32,640 --> 01:06:35,440
the operational expenses. Here shows you

1595
01:06:35,440 --> 01:06:37,200
the totals that we're bringing into the

1596
01:06:37,200 --> 01:06:41,119
model. So dollar-wise, you know, for my

1597
01:06:41,119 --> 01:06:43,440
budget, these are huge numbers, right? I

1598
01:06:43,440 --> 01:06:44,640
would love to have this in my bank

1599
01:06:44,640 --> 01:06:47,280
account before a capital project list. I

1600
01:06:47,280 --> 01:06:48,960
mean, we see projects and hundreds of

1601
01:06:48,960 --> 01:06:54,880
millions of dollars, right? So, um but we are including uh one-time

1602
01:06:54,880 --> 01:06:58,640
expenses that the general fund uh is is

1603
01:06:58,640 --> 01:07:01,680
intended to cover in this model. And

1604
01:07:01,680 --> 01:07:04,480
notable projects include uh park uh

1605
01:07:04,480 --> 01:07:07,200
construction, renovations, the fire

1606
01:07:07,200 --> 01:07:09,440
station, as Bren mentioned, there's some

1607
01:07:09,440 --> 01:07:11,680
other uh one-time expenses from other

1608
01:07:11,680 --> 01:07:13,119
departments. public [clears throat]

1609
01:07:13,119 --> 01:07:14,480
safety that we're bringing into the

1610
01:07:14,480 --> 01:07:17,280
analysis. Um these again in the model

1611
01:07:17,280 --> 01:07:19,039
are programmed as a singular occurrence.

1612
01:07:19,039 --> 01:07:22,559
So we're not um we need to try to cover

1613
01:07:22,559 --> 01:07:27,520
these expenses, but we're also using the idea is to potentially use the fund

1614
01:07:27,520 --> 01:07:30,319
balance to help smooth that out. Right?

1615
01:07:30,319 --> 01:07:32,079
the the bigger issue as it relates to

1616
01:07:32,079 --> 01:07:33,599
property taxes and your revenue

1617
01:07:33,599 --> 01:07:35,680
generation is ongoing expenses and

1618
01:07:35,680 --> 01:07:37,839
trying to say what is the new trend

1619
01:07:37,839 --> 01:07:39,599
relative to cost and do we need to

1620
01:07:39,599 --> 01:07:42,240
change our revenue projections to to

1621
01:07:42,240 --> 01:07:44,960
cover that but we do have onetime

1622
01:07:44,960 --> 01:07:47,440
expenses here's an illustration of the

1623
01:07:47,440 --> 01:07:50,480
ongoing expense and this is cumulative

1624
01:07:50,480 --> 01:07:52,559
so what happens with ongoing is once we

1625
01:07:52,559 --> 01:07:54,799
layer it in the model it stays in the

1626
01:07:54,799 --> 01:07:58,160
model and we inflate that while adding

1627
01:07:58,160 --> 01:08:00,400
future years ongoing expense on top of

1628
01:08:00,400 --> 01:08:03,039
that. So that dollar can increase pretty

1629
01:08:03,039 --> 01:08:04,720
quickly which is what you see here when

1630
01:08:04,720 --> 01:08:07,359
we asked from the departments tell us

1631
01:08:07,359 --> 01:08:10,880
everything you know um this is the

1632
01:08:10,880 --> 01:08:13,839
outcome of that we said what FTEES new

1633
01:08:13,839 --> 01:08:15,520
uh full-time equivalent positions would

1634
01:08:15,520 --> 01:08:18,239
you need new uh operational elements

1635
01:08:18,239 --> 01:08:20,960
supplies uh anything relative to your

1636
01:08:20,960 --> 01:08:23,120
budget infusion of additional uh

1637
01:08:23,120 --> 01:08:25,839
operating costs uh into a budget line

1638
01:08:25,839 --> 01:08:27,920
item tell us everything. And so that

1639
01:08:27,920 --> 01:08:30,000
exercise we we spent several weeks back

1640
01:08:30,000 --> 01:08:34,960
and forth uh evaluating that and by 2032

1641
01:08:34,960 --> 01:08:37,679
the cumulative impact of those uh

1642
01:08:37,679 --> 01:08:40,799
requests, level of service uh issues,

1643
01:08:40,799 --> 01:08:43,839
unfunded mandates come to about $6.5

1644
01:08:43,839 --> 01:08:47,359
million. So that's on top of again

1645
01:08:47,359 --> 01:08:49,359
inflation to your base expense that we

1646
01:08:49,359 --> 01:08:53,440
reviewed on that previous slide. those assumptions relative to inflation.

1647
01:08:53,440 --> 01:08:57,199
We're also adding uh up to $6 million in

1648
01:08:57,199 --> 01:08:59,440
2032 and that will continue to grow. So

1649
01:08:59,440 --> 01:09:01,839
the same inflationary pre pressure that

1650
01:09:01,839 --> 01:09:03,920
is applied to your base is applied to

1651
01:09:03,920 --> 01:09:06,000
any new expense that we bring into the

1652
01:09:06,000 --> 01:09:09,279
model. Um so

1653
01:09:09,279 --> 01:09:12,000
while um you know your return on

1654
01:09:12,000 --> 01:09:14,319
investment is is a positive that

1655
01:09:14,319 --> 01:09:16,719
compounding effect is very positive the

1656
01:09:16,719 --> 01:09:18,560
reverse applies as it relates to expense

1657
01:09:18,560 --> 01:09:21,440
and inflation. is compounding and it can

1658
01:09:21,440 --> 01:09:23,279
hurt over time because that continues to

1659
01:09:23,279 --> 01:09:26,799
grow. That further stresses that that

1660
01:09:26,799 --> 01:09:29,440
need to evaluate revenue resources. How

1661
01:09:29,440 --> 01:09:31,920
do we mitigate inflationary pressure?

1662
01:09:31,920 --> 01:09:34,159
Because the compounding effect can be

1663
01:09:34,159 --> 01:09:36,560
very detrimental if left unchecked. We

1664
01:09:36,560 --> 01:09:39,040
get to a point where entities say we

1665
01:09:39,040 --> 01:09:41,600
need a 50% tax increase because of all

1666
01:09:41,600 --> 01:09:44,000
this pressure that we've let fester

1667
01:09:44,000 --> 01:09:47,279
essentially. We we haven't looked at. So

1668
01:09:47,279 --> 01:09:49,679
we we try to avoid that.

1669
01:09:49,679 --> 01:09:51,600
All righty. Laura showed a slide like

1670
01:09:51,600 --> 01:09:53,920
this. We've isolated to just the general

1671
01:09:53,920 --> 01:09:57,440
fund uh relative to budgetary figures.

1672
01:09:57,440 --> 01:09:59,520
This shows less of a decrease on your

1673
01:09:59,520 --> 01:10:02,560
property tax, right? So, um going from

1674
01:10:02,560 --> 01:10:06,400
11% down to 10%. It shows uh an increase

1675
01:10:06,400 --> 01:10:08,320
in reliance on sales tax. So, the

1676
01:10:08,320 --> 01:10:11,199
similar concept here that we're using

1677
01:10:11,199 --> 01:10:13,600
the uh growth in a specific revenue line

1678
01:10:13,600 --> 01:10:16,800
item to support uh expenditure growth.

1679
01:10:16,800 --> 01:10:20,320
So we have to watch that. The the other

1680
01:10:20,320 --> 01:10:22,320
issue here that I just kind of screamed

1681
01:10:22,320 --> 01:10:25,120
to me as I looked at these uh charts is

1682
01:10:25,120 --> 01:10:27,440
again proportionality. I do a lot of

1683
01:10:27,440 --> 01:10:29,520
work in impact fees, cost of service

1684
01:10:29,520 --> 01:10:31,840
studies and proportionality is a big

1685
01:10:31,840 --> 01:10:34,640
component of that. So understanding

1686
01:10:34,640 --> 01:10:36,719
proportionality and this these charts is

1687
01:10:36,719 --> 01:10:40,480
also critical. So here you're relying on

1688
01:10:40,480 --> 01:10:42,719
one stream of revenue or or heavily

1689
01:10:42,719 --> 01:10:44,560
reliant on one stream of revenue that

1690
01:10:44,560 --> 01:10:47,679
sales tax bucket. So again that that

1691
01:10:47,679 --> 01:10:49,280
could cause some concern especially if

1692
01:10:49,280 --> 01:10:52,560
that uh changes over time.

1693
01:10:52,560 --> 01:10:54,560
We also wanted to highlight uh the

1694
01:10:54,560 --> 01:10:56,239
expenditure growth within the general

1695
01:10:56,239 --> 01:10:59,760
fund from 2019 to 2026 showing your

1696
01:10:59,760 --> 01:11:03,760
expenses um plateauing out here. This to

1697
01:11:03,760 --> 01:11:07,440
me is is really focusing on efficiency

1698
01:11:07,440 --> 01:11:09,120
but the other metrics that we've talked

1699
01:11:09,120 --> 01:11:10,880
about that are a little difficult more

1700
01:11:10,880 --> 01:11:13,280
difficult for us to quantify but showing

1701
01:11:13,280 --> 01:11:15,360
that the city is is really trying to

1702
01:11:15,360 --> 01:11:18,480
keep uh those expenses matched to that

1703
01:11:18,480 --> 01:11:20,080
revenue stream and you can see that

1704
01:11:20,080 --> 01:11:21,760
plateauing effect happening on the

1705
01:11:21,760 --> 01:11:24,159
expense side

1706
01:11:24,159 --> 01:11:25,760
depending on your perspective that's it

1707
01:11:25,760 --> 01:11:28,239
can be a positive and negative. um as a

1708
01:11:28,239 --> 01:11:30,239
taxpayer I'd look at that as positive

1709
01:11:30,239 --> 01:11:32,960
right our expenses are are um are being

1710
01:11:32,960 --> 01:11:35,040
controlled from a level of service

1711
01:11:35,040 --> 01:11:37,760
perspective that can be uh concerning

1712
01:11:37,760 --> 01:11:40,000
right um understanding inflation what I

1713
01:11:40,000 --> 01:11:42,480
know I'm I consider myself an informed

1714
01:11:42,480 --> 01:11:44,800
taxpayer I would look at that and say

1715
01:11:44,800 --> 01:11:46,159
well what's happening to our level of

1716
01:11:46,159 --> 01:11:48,719
service right if expense doesn't grow is

1717
01:11:48,719 --> 01:11:50,560
our level of service being compromised

1718
01:11:50,560 --> 01:11:54,560
over time and am I okay with that right

1719
01:11:54,560 --> 01:11:57,040
feel about that

1720
01:11:57,040 --> 01:11:59,199
Uh this is uh to bring this home again

1721
01:11:59,199 --> 01:12:00,800
what Laura spoke to. It's just a

1722
01:12:00,800 --> 01:12:02,560
different way to show this which is your

1723
01:12:02,560 --> 01:12:05,040
buying power. This shows the percentage

1724
01:12:05,040 --> 01:12:08,080
of ORM's uh your tax rate as a

1725
01:12:08,080 --> 01:12:09,760
percentage of the total. So adding up

1726
01:12:09,760 --> 01:12:12,320
every all the other tax levies uh school

1727
01:12:12,320 --> 01:12:15,120
district uh the county uh other

1728
01:12:15,120 --> 01:12:16,640
districts

1729
01:12:16,640 --> 01:12:19,679
in uh 2005. So going back you know

1730
01:12:19,679 --> 01:12:23,040
further in time you uh accounted for 17%

1731
01:12:23,040 --> 01:12:25,679
of the total tax levy. uh and fast

1732
01:12:25,679 --> 01:12:28,480
forward to 2025, you're at 9%. So what

1733
01:12:28,480 --> 01:12:30,480
that suggests is other entities are

1734
01:12:30,480 --> 01:12:33,199
increasing their tax levy uh

1735
01:12:33,199 --> 01:12:35,440
proportionally speaking, whereas you are

1736
01:12:35,440 --> 01:12:38,239
not. So your your buying power is

1737
01:12:38,239 --> 01:12:39,679
another expression of how your buy

1738
01:12:39,679 --> 01:12:42,000
buying power is decreasing relative to

1739
01:12:42,000 --> 01:12:44,159
the property tax. Now that's not saying

1740
01:12:44,159 --> 01:12:45,840
that you're not generating new revenue,

1741
01:12:45,840 --> 01:12:47,440
right? Your sales tax revenues have

1742
01:12:47,440 --> 01:12:49,679
grown, other revenues are growing, but

1743
01:12:49,679 --> 01:12:51,280
it does illustrate what you're relying

1744
01:12:51,280 --> 01:12:53,760
on. you're keeping this constant or or

1745
01:12:53,760 --> 01:12:55,360
reducing buying power and letting other

1746
01:12:55,360 --> 01:12:58,080
areas pick up the slack.

1747
01:12:58,080 --> 01:13:01,120
All righty. Um so here's the scary part.

1748
01:13:01,120 --> 01:13:02,800
We're going to show what happens when we

1749
01:13:02,800 --> 01:13:05,120
bring it all together and track the $25

1750
01:13:05,120 --> 01:13:07,360
million fund balance over time and see

1751
01:13:07,360 --> 01:13:10,400
what happens to that. Um this is no new

1752
01:13:10,400 --> 01:13:13,120
property tax. Let's keep everything on,

1753
01:13:13,120 --> 01:13:15,040
you know, all of our new expense, uh

1754
01:13:15,040 --> 01:13:17,679
onetime expense, operating expense. No

1755
01:13:17,679 --> 01:13:19,600
other tools are being used like bonding

1756
01:13:19,600 --> 01:13:22,480
other than we do have an assumed bond

1757
01:13:22,480 --> 01:13:25,280
payment relative to the uh cremation

1758
01:13:25,280 --> 01:13:27,840
memorial bond payment that's already

1759
01:13:27,840 --> 01:13:29,920
kind of we're assuming it is an existing

1760
01:13:29,920 --> 01:13:33,199
assumption. So we're not adding new

1761
01:13:33,199 --> 01:13:36,080
bonding resources here uh to mitigate

1762
01:13:36,080 --> 01:13:38,480
any funding shortfalls as it relates to

1763
01:13:38,480 --> 01:13:41,199
onetime expenses.

1764
01:13:41,199 --> 01:13:43,760
Um I won't go into this. This is just

1765
01:13:43,760 --> 01:13:45,440
reiterating the assumptions that we're

1766
01:13:45,440 --> 01:13:48,239
pulling into the model relative to the

1767
01:13:48,239 --> 01:13:50,719
revenues and expenses. Uh I'll provide

1768
01:13:50,719 --> 01:13:53,280
this slide deck so you can see these uh

1769
01:13:53,280 --> 01:13:55,679
what it's showing is what the 2019 to

1770
01:13:55,679 --> 01:13:58,640
2024 actual change in those categories

1771
01:13:58,640 --> 01:14:00,400
were compared to what we're assuming. So

1772
01:14:00,400 --> 01:14:02,800
it'll help you see um what those

1773
01:14:02,800 --> 01:14:04,719
assumptions were making relative to

1774
01:14:04,719 --> 01:14:06,400
revenue growth. So that question of

1775
01:14:06,400 --> 01:14:10,239
sales tax 2019 to 2024 you had almost a

1776
01:14:10,239 --> 01:14:13,360
7% growth. we're assuming 3% but if you

1777
01:14:13,360 --> 01:14:14,960
isolate just the last three years of

1778
01:14:14,960 --> 01:14:17,440
actual that's really 0% historic growth.

1779
01:14:17,440 --> 01:14:19,440
So that that's what we have to be

1780
01:14:19,440 --> 01:14:21,040
careful of is it it really depends on

1781
01:14:21,040 --> 01:14:23,360
the window we're looking at relative to

1782
01:14:23,360 --> 01:14:25,280
historic trends. Yes.

1783
01:14:25,280 --> 01:14:26,640
>> And without getting off on too much of a

1784
01:14:26,640 --> 01:14:27,760
tangent, do we have anything to account

1785
01:14:27,760 --> 01:14:29,360
for that drop in those last two years of

1786
01:14:29,360 --> 01:14:32,480
the plateau? Um my thought I can just

1787
01:14:32,480 --> 01:14:36,880
make um a guess but you might have been

1788
01:14:36,880 --> 01:14:40,159
going through a rebound relative to um

1789
01:14:40,159 --> 01:14:43,040
the impacts of COVID to say okay people

1790
01:14:43,040 --> 01:14:45,280
start purchasing more as you've got out

1791
01:14:45,280 --> 01:14:49,199
of that that time and then once that new

1792
01:14:49,199 --> 01:14:52,080
norm is established then you'll say okay

1793
01:14:52,080 --> 01:14:54,000
this this is where I'm comfortable

1794
01:14:54,000 --> 01:14:55,440
spending right how many times I go out

1795
01:14:55,440 --> 01:14:56,400
to eat and yeah

1796
01:14:56,400 --> 01:14:58,000
>> well and I'd be curious too I don't know

1797
01:14:58,000 --> 01:14:59,520
if we can comment on this but vehicle

1798
01:14:59,520 --> 01:15:00,960
sales

1799
01:15:00,960 --> 01:15:03,280
They're they [clears throat] were highly

1800
01:15:03,280 --> 01:15:04,800
inflated

1801
01:15:04,800 --> 01:15:06,880
and are just now starting to be

1802
01:15:06,880 --> 01:15:10,080
realistic. So how many postpone buying a

1803
01:15:10,080 --> 01:15:10,719
car?

1804
01:15:10,719 --> 01:15:11,760
>> Yes. Yeah.

1805
01:15:11,760 --> 01:15:13,679
>> So some of those trends and actual cost

1806
01:15:13,679 --> 01:15:17,120
of of a product would influence this. So

1807
01:15:17,120 --> 01:15:20,960
um in inflation can benefit you on this

1808
01:15:20,960 --> 01:15:22,480
side of your revenue stream, right?

1809
01:15:22,480 --> 01:15:24,080
Because it's a percentage of total

1810
01:15:24,080 --> 01:15:25,840
expense when we look at sales tax

1811
01:15:25,840 --> 01:15:28,480
revenue. 1% of the dollars that go out

1812
01:15:28,480 --> 01:15:31,440
the door. If I have to spend more on the

1813
01:15:31,440 --> 01:15:33,440
basket of good goods and services that

1814
01:15:33,440 --> 01:15:36,159
I'm accustomed to buying, municipalities

1815
01:15:36,159 --> 01:15:37,920
and other taxing entities will get more

1816
01:15:37,920 --> 01:15:40,400
tax revenue. As that inflation cools

1817
01:15:40,400 --> 01:15:42,719
down, then that revenue is going to

1818
01:15:42,719 --> 01:15:44,960
plateau because we're not spending as

1819
01:15:44,960 --> 01:15:47,760
much on the same basket of services that

1820
01:15:47,760 --> 01:15:51,280
we buy. don't uh it can benefit you but

1821
01:15:51,280 --> 01:15:53,679
in this case I would guess it's those

1822
01:15:53,679 --> 01:15:56,400
factors are causing a slowdown other

1823
01:15:56,400 --> 01:15:58,400
factors your economic development if

1824
01:15:58,400 --> 01:16:00,239
you've had growth redevelopment and then

1825
01:16:00,239 --> 01:16:03,520
that stops then you're going to see that

1826
01:16:03,520 --> 01:16:06,480
uh plateau as well where you've reached

1827
01:16:06,480 --> 01:16:10,159
a new norm essentially

1828
01:16:10,159 --> 01:16:13,600
all righty uh again a lot of data here

1829
01:16:13,600 --> 01:16:15,360
uh what this is showing is the

1830
01:16:15,360 --> 01:16:17,679
culmination of those assumptions as it

1831
01:16:17,679 --> 01:16:19,360
relates to your revenues and expenses.

1832
01:16:19,360 --> 01:16:21,440
So, we've summarized the revenues up top

1833
01:16:21,440 --> 01:16:23,679
here. This is taking those assumptions

1834
01:16:23,679 --> 01:16:25,520
and making projections relative to your

1835
01:16:25,520 --> 01:16:26,800
budget and saying what do we think

1836
01:16:26,800 --> 01:16:29,920
revenues will grow to and then what do

1837
01:16:29,920 --> 01:16:32,800
we think our expenses will grow to uh

1838
01:16:32,800 --> 01:16:36,960
based on um all of those assumptions. Uh

1839
01:16:36,960 --> 01:16:41,920
here you can see that the disparity um

1840
01:16:41,920 --> 01:16:43,679
>> what was that

1841
01:16:43,679 --> 01:16:45,600
>> this meeting is being recorded

1842
01:16:45,600 --> 01:16:47,840
>> that I don't know

1843
01:16:47,840 --> 01:16:50,159
>> that's kind of stuck with

1844
01:16:50,159 --> 01:16:52,480
>> you're stuck with it.

1845
01:16:52,480 --> 01:16:56,390
>> Okay.

1846
01:16:56,400 --> 01:17:01,830
» Yes.

1847
01:17:01,840 --> 01:17:05,760
It's gonna be smaller, but uh

1848
01:17:05,760 --> 01:17:08,159
>> Oh, no, no, no, no, no. That that little

1849
01:17:08,159 --> 01:17:11,199
thing has the number. [laughter]

1850
01:17:11,199 --> 01:17:14,239
>> I'll show you in the next slide that

1851
01:17:14,239 --> 01:17:15,360
I'll illustrate.

1852
01:17:15,360 --> 01:17:17,440
>> This was covering some numbers and so

1853
01:17:17,440 --> 01:17:21,120
>> yes. So again what what I look for is

1854
01:17:21,120 --> 01:17:23,120
what's happening in the model and what

1855
01:17:23,120 --> 01:17:26,080
are the factors leading to that because

1856
01:17:26,080 --> 01:17:27,679
there are assumptions in this model and

1857
01:17:27,679 --> 01:17:29,600
assumptions by nature are guesses

1858
01:17:29,600 --> 01:17:31,679
relative to the future and we can change

1859
01:17:31,679 --> 01:17:34,640
those assumptions. It just introduces

1860
01:17:34,640 --> 01:17:36,400
risk into the model. If our assumption

1861
01:17:36,400 --> 01:17:37,600
is conservative and we're not

1862
01:17:37,600 --> 01:17:39,840
comfortable with that be aggressive

1863
01:17:39,840 --> 01:17:45,040
which increases the risk scale right it creates more risk in the model. So

1864
01:17:45,040 --> 01:17:47,280
here because we've made assumptions

1865
01:17:47,280 --> 01:17:49,199
relative to revenue, the growth is a lot

1866
01:17:49,199 --> 01:17:51,600
slower. Whereas our expenses, we've

1867
01:17:51,600 --> 01:17:54,719
included everything and grown those at a

1868
01:17:54,719 --> 01:17:57,040
at what things a little more maybe

1869
01:17:57,040 --> 01:18:00,960
realistic or aggressive growth rate to

1870
01:18:00,960 --> 01:18:03,679
capture uh changes in expenses. So you

1871
01:18:03,679 --> 01:18:05,840
can see the deficit just grows over

1872
01:18:05,840 --> 01:18:09,199
time. we we do not have enough uh buying

1873
01:18:09,199 --> 01:18:12,480
power or revenue growth to handle that

1874
01:18:12,480 --> 01:18:14,400
inflationary pressure and unfunded

1875
01:18:14,400 --> 01:18:16,640
mandates within our proforma and that

1876
01:18:16,640 --> 01:18:19,040
causes this. So if you can go back to

1877
01:18:19,040 --> 01:18:20,480
the last one.

1878
01:18:20,480 --> 01:18:23,040
>> So it's interesting to know so if we got

1879
01:18:23,040 --> 01:18:24,960
to that point you could completely get

1880
01:18:24,960 --> 01:18:26,960
rid of the city manager but you'd still

1881
01:18:26,960 --> 01:18:30,804
be in that debt.

1882
01:18:30,814 --> 01:18:34,149
[laughter]

1883
01:18:34,159 --> 01:18:36,320
That's an important

1884
01:18:36,320 --> 01:18:38,080
on the dollar.

1885
01:18:38,080 --> 01:18:41,360
>> Consider that.

1886
01:18:41,360 --> 01:18:44,480
Um it does highlight though, you know,

1887
01:18:44,480 --> 01:18:47,520
that uh comment does highlight what

1888
01:18:47,520 --> 01:18:50,480
Laura stressed, which is when you start

1889
01:18:50,480 --> 01:18:53,440
talking about issues and the magnitude,

1890
01:18:53,440 --> 01:18:55,600
then you determine okay, if we go back

1891
01:18:55,600 --> 01:18:58,080
to our metrics relative to

1892
01:18:58,080 --> 01:19:00,800
sustainability, efficiency, cost

1893
01:19:00,800 --> 01:19:03,360
reduction and revenue generation.

1894
01:19:03,360 --> 01:19:05,840
There's a lot of service provided here.

1895
01:19:05,840 --> 01:19:07,679
uh you know when you look at the general

1896
01:19:07,679 --> 01:19:09,920
fund and it becomes very challenging to

1897
01:19:09,920 --> 01:19:12,640
say what are we willing to remove from

1898
01:19:12,640 --> 01:19:16,000
this equation or what are we willing to

1899
01:19:16,000 --> 01:19:19,840
um control relative to this equation so

1900
01:19:19,840 --> 01:19:22,320
it's removal of cost the control of that

1901
01:19:22,320 --> 01:19:24,320
cost and then the revenue generation on

1902
01:19:24,320 --> 01:19:26,080
top of that all of that has to be

1903
01:19:26,080 --> 01:19:28,640
considered when we talk sustainability

1904
01:19:28,640 --> 01:19:30,960
but the magnitude is what I focus on

1905
01:19:30,960 --> 01:19:32,719
right is the magnitude of impact is

1906
01:19:32,719 --> 01:19:36,560
pretty substantial um And when I compare

1907
01:19:36,560 --> 01:19:39,440
what you generate from property tax, it

1908
01:19:39,440 --> 01:19:41,280
becomes even more substantial. We're

1909
01:19:41,280 --> 01:19:43,920
generating $7 million in property tax

1910
01:19:43,920 --> 01:19:48,880
revenue relative to a deficit of 25

1911
01:19:48,880 --> 01:19:51,520
million by 2030. That that's a big nut

1912
01:19:51,520 --> 01:19:55,199
to crack there. So, um I'm not saying

1913
01:19:55,199 --> 01:19:56,480
essentially what I what I'm saying is

1914
01:19:56,480 --> 01:19:58,719
this is a a challenging dilemma to be

1915
01:19:58,719 --> 01:20:01,280
in. And so, um understanding it is the

1916
01:20:01,280 --> 01:20:02,880
first step and then determining what do

1917
01:20:02,880 --> 01:20:04,560
we do about it.

1918
01:20:04,560 --> 01:20:08,159
Um this graph highlights two things. Uh

1919
01:20:08,159 --> 01:20:10,400
what I wanted to show was again our fund

1920
01:20:10,400 --> 01:20:12,800
balance. That blue line is is calculated

1921
01:20:12,800 --> 01:20:14,640
based on those numbers above. We

1922
01:20:14,640 --> 01:20:16,960
essentially eat up all of our $25

1923
01:20:16,960 --> 01:20:18,960
million fund balance then go negative.

1924
01:20:18,960 --> 01:20:21,520
We cannot sustain the assumptions that

1925
01:20:21,520 --> 01:20:23,840
we have programmed into the model. But

1926
01:20:23,840 --> 01:20:26,000
then I also included a pink line which

1927
01:20:26,000 --> 01:20:29,840
is I turned off all of our uh one-time

1928
01:20:29,840 --> 01:20:34,480
expense and um new operational needs. So

1929
01:20:34,480 --> 01:20:36,960
this highlights the inflationary

1930
01:20:36,960 --> 01:20:38,800
pressure. The pink line is essentially

1931
01:20:38,800 --> 01:20:42,080
saying if we have slow revenue growth

1932
01:20:42,080 --> 01:20:44,480
and just the inflationary pressure in

1933
01:20:44,480 --> 01:20:47,040
our base expense, we still have a

1934
01:20:47,040 --> 01:20:50,560
problem. So, it helps me understand that

1935
01:20:50,560 --> 01:20:56,640
it's not just level of service issues or trying to quest a Cadillac when all

1936
01:20:56,640 --> 01:20:59,120
we can afford is a Ford, right? There's

1937
01:20:59,120 --> 01:21:00,960
this inflationary pressure that will

1938
01:21:00,960 --> 01:21:03,040
affect you regardless. And so, it's

1939
01:21:03,040 --> 01:21:05,679
controlling that and balancing that. So,

1940
01:21:05,679 --> 01:21:07,520
that gives you an idea of of those two

1941
01:21:07,520 --> 01:21:09,040
scenarios.

1942
01:21:09,040 --> 01:21:10,560
I wanted to bring home I've I've

1943
01:21:10,560 --> 01:21:11,679
highlighted this throughout the

1944
01:21:11,679 --> 01:21:13,520
presentation.

1945
01:21:13,520 --> 01:21:15,360
We focused on we're talking about

1946
01:21:15,360 --> 01:21:16,880
revenue generation. in this model, what

1947
01:21:16,880 --> 01:21:18,480
we do with your property tax rate. How

1948
01:21:18,480 --> 01:21:20,080
do we make assumptions relative to sales

1949
01:21:20,080 --> 01:21:22,320
tax and other revenues? These elements

1950
01:21:22,320 --> 01:21:24,159
are still very important, but it's

1951
01:21:24,159 --> 01:21:26,000
that's a little bit more on your side,

1952
01:21:26,000 --> 01:21:28,320
right? As legislators, how do we manage

1953
01:21:28,320 --> 01:21:29,679
our level of service? What are we

1954
01:21:29,679 --> 01:21:31,440
willing to fund? What are we willing to

1955
01:21:31,440 --> 01:21:33,760
remove from the equation? Those are

1956
01:21:33,760 --> 01:21:35,760
definitely hard uh discussions, but

1957
01:21:35,760 --> 01:21:37,600
something that happens outside of this

1958
01:21:37,600 --> 01:21:39,199
model.

1959
01:21:39,199 --> 01:21:41,040
Um,

1960
01:21:41,040 --> 01:21:43,600
see, we've got three minutes. Uh let's

1961
01:21:43,600 --> 01:21:45,360
go to

1962
01:21:45,360 --> 01:21:48,640
this slide. This was um really a a

1963
01:21:48,640 --> 01:21:50,960
comparative slide that showed um some

1964
01:21:50,960 --> 01:21:53,600
comp communities. Sorry, you can't see

1965
01:21:53,600 --> 01:21:56,480
the ones over there. Logan is the last

1966
01:21:56,480 --> 01:21:57,760
comp here, so there's nothing over

1967
01:21:57,760 --> 01:22:00,880
there. This is our 24, 25, and 26

1968
01:22:00,880 --> 01:22:03,600
budget. Showing where orange stands

1969
01:22:03,600 --> 01:22:06,480
relative to expenses per capita. And

1970
01:22:06,480 --> 01:22:10,239
this is purely a total expense uh

1971
01:22:10,239 --> 01:22:13,600
divided uh by the the population. It

1972
01:22:13,600 --> 01:22:15,440
does not address level of service issues

1973
01:22:15,440 --> 01:22:18,639
between communities. So um comparative

1974
01:22:18,639 --> 01:22:20,159
data can be very challenging because

1975
01:22:20,159 --> 01:22:22,159
every city is different on what is

1976
01:22:22,159 --> 01:22:24,800
provided within the general fund, how uh

1977
01:22:24,800 --> 01:22:27,040
services are funded with other other sub

1978
01:22:27,040 --> 01:22:29,840
funds. But it does give an idea going

1979
01:22:29,840 --> 01:22:32,800
back to the um total expense growth

1980
01:22:32,800 --> 01:22:34,320
within the general fund that I showed in

1981
01:22:34,320 --> 01:22:37,600
the previous slide that ORM over the

1982
01:22:37,600 --> 01:22:41,520
last several years is focusing on those

1983
01:22:41,520 --> 01:22:43,440
other metrics which is cost containment

1984
01:22:43,440 --> 01:22:45,679
and efficiency, right? Because our cost

1985
01:22:45,679 --> 01:22:48,800
per capita here is on the lower end and

1986
01:22:48,800 --> 01:22:50,960
staying pretty constant, right? Relative

1987
01:22:50,960 --> 01:22:55,120
to our population changes. Um so that

1988
01:22:55,120 --> 01:22:56,800
that's an important consideration as we

1989
01:22:56,800 --> 01:22:59,440
look at those other metrics within this

1990
01:22:59,440 --> 01:23:02,880
um sustainability model.

1991
01:23:02,880 --> 01:23:05,360
All righty. Um as we talk about what to

1992
01:23:05,360 --> 01:23:08,159
do next, we look at what levers we can

1993
01:23:08,159 --> 01:23:09,679
push and pull in the model. We can

1994
01:23:09,679 --> 01:23:11,840
obviously address assumptions. If we

1995
01:23:11,840 --> 01:23:13,360
want to again change those assumptions,

1996
01:23:13,360 --> 01:23:15,679
we can do that. We can turn on and off

1997
01:23:15,679 --> 01:23:18,000
expenses relative to those new or

1998
01:23:18,000 --> 01:23:21,600
unfunded expenses. property tax is um

1999
01:23:21,600 --> 01:23:23,360
one of the levers that you can actually

2000
01:23:23,360 --> 01:23:25,280
specifically manipulate in the form of

2001
01:23:25,280 --> 01:23:27,280
the truth and taxation process. So you

2002
01:23:27,280 --> 01:23:31,280
can change that. You can also change um

2003
01:23:31,280 --> 01:23:33,280
the bonding tool that you utilize. So

2004
01:23:33,280 --> 01:23:35,360
you can use that to help mitigate

2005
01:23:35,360 --> 01:23:37,440
one-time expenses.

2006
01:23:37,440 --> 01:23:39,040
The one-time expenses that the general

2007
01:23:39,040 --> 01:23:41,280
fund is covering is not a a huge

2008
01:23:41,280 --> 01:23:43,600
component of this uh relative to a

2009
01:23:43,600 --> 01:23:46,000
bonding perspective, especially relative

2010
01:23:46,000 --> 01:23:50,080
to your total general fund expenses. Um

2011
01:23:50,080 --> 01:23:51,600
and then the other item that you can

2012
01:23:51,600 --> 01:23:53,679
evaluate which the city has done over

2013
01:23:53,679 --> 01:23:55,679
the years which is strategic revenue

2014
01:23:55,679 --> 01:23:57,360
evaluation. It's looking at your charges

2015
01:23:57,360 --> 01:23:59,679
for services for example and saying are

2016
01:23:59,679 --> 01:24:01,199
those where they need to be. Make sure

2017
01:24:01,199 --> 01:24:03,440
that's maximized. You've addressed

2018
01:24:03,440 --> 01:24:05,280
impact fees. That's not directly related

2019
01:24:05,280 --> 01:24:07,360
to general fund but maximizing those

2020
01:24:07,360 --> 01:24:09,600
ensures that there's less pressure on

2021
01:24:09,600 --> 01:24:11,760
the general fund. So that strategic

2022
01:24:11,760 --> 01:24:13,679
evaluation is very beneficial and should

2023
01:24:13,679 --> 01:24:15,360
not be overlooked. It's just not a

2024
01:24:15,360 --> 01:24:17,760
specific lever that we pull in the

2025
01:24:17,760 --> 01:24:20,639
general fund as it relates to revenue.

2026
01:24:20,639 --> 01:24:22,800
And then alternative revenues, we've t

2027
01:24:22,800 --> 01:24:24,159
touched upon that with the

2028
01:24:24,159 --> 01:24:26,639
transportation utility fee. If those

2029
01:24:26,639 --> 01:24:29,600
come up, they can be utilized again to

2030
01:24:29,600 --> 01:24:32,080
help uh alleviate pressure on that

2031
01:24:32,080 --> 01:24:34,560
property tax. Uh so using those

2032
01:24:34,560 --> 01:24:36,880
strategically is very beneficial.

2033
01:24:36,880 --> 01:24:41,199
Ultimately, um you know, we need to look

2034
01:24:41,199 --> 01:24:43,360
at what scenarios you're comfortable

2035
01:24:43,360 --> 01:24:46,400
with. Um you know, are we willing to

2036
01:24:46,400 --> 01:24:48,320
manipulate the property tax and if so,

2037
01:24:48,320 --> 01:24:50,320
to what magnitude and how does that

2038
01:24:50,320 --> 01:24:53,600
influence this um this model? And then

2039
01:24:53,600 --> 01:24:57,520
discussing implementation. So, uh again,

2040
01:24:57,520 --> 01:24:59,360
I'm in the envious position of just

2041
01:24:59,360 --> 01:25:01,679
presenting data. [laughter]

2042
01:25:01,679 --> 01:25:04,159
You're in the challenging position of

2043
01:25:04,159 --> 01:25:05,520
implementation. and you're where the

2044
01:25:05,520 --> 01:25:07,440
rubber hits the road and and taking

2045
01:25:07,440 --> 01:25:08,960
action. But hopefully this gives you an

2046
01:25:08,960 --> 01:25:12,000
idea of of the the issue and then what

2047
01:25:12,000 --> 01:25:14,159
we can do about it. I think it's

2048
01:25:14,159 --> 01:25:16,400
everything and I didn't give you a lot

2049
01:25:16,400 --> 01:25:19,040
of time for questions. Uh so

2050
01:25:19,040 --> 01:25:20,480
>> are you looking for uh are you looking

2051
01:25:20,480 --> 01:25:22,480
for an answer from us today or can you

2052
01:25:22,480 --> 01:25:24,560
go? [clears throat]

2053
01:25:24,560 --> 01:25:26,960
>> Yeah. Yeah, absolutely. Um

2054
01:25:26,960 --> 01:25:28,719
>> not for long. I know I know you need

2055
01:25:28,719 --> 01:25:31,520
time is of the essence. I get that. But

2056
01:25:31,520 --> 01:25:33,360
I'm not prepared after getting booking

2057
01:25:33,360 --> 01:25:36,880
and all that to say let's work that into

2058
01:25:36,880 --> 01:25:38,239
that because

2059
01:25:38,239 --> 01:25:40,000
>> we also need the presentation.

2060
01:25:40,000 --> 01:25:42,400
>> Yes. And we'll also provide um some

2061
01:25:42,400 --> 01:25:43,920
additional information relative to the

2062
01:25:43,920 --> 01:25:44,880
onetime expense.

2063
01:25:44,880 --> 01:25:45,600
>> Very informative

2064
01:25:45,600 --> 01:25:47,920
>> and the uh ongoing expense so you can

2065
01:25:47,920 --> 01:25:50,000
see exactly what is included in the

2066
01:25:50,000 --> 01:25:53,199
model and so it's not just a a total

2067
01:25:53,199 --> 01:25:55,760
number can show details relative to

2068
01:25:55,760 --> 01:25:56,480
that.

2069
01:25:56,480 --> 01:25:58,239
>> This is very very interesting. Thank

2070
01:25:58,239 --> 01:26:00,480
you. So, we'll send out the

2071
01:26:00,480 --> 01:26:04,560
presentations. Um, also, you can, uh,

2072
01:26:04,560 --> 01:26:06,239
you don't have to wait till the next,

2073
01:26:06,239 --> 01:26:08,320
you know, work session to provide

2074
01:26:08,320 --> 01:26:11,760
follow-up questions or requests

2075
01:26:11,760 --> 01:26:14,080
that we could then make back to to Fred.

2076
01:26:14,080 --> 01:26:16,239
We can still, Fred, we can still keep

2077
01:26:16,239 --> 01:26:17,600
you busy. Yes.

2078
01:26:17,600 --> 01:26:20,480
>> Using this model, right? And could we

2079
01:26:20,480 --> 01:26:22,320
even potentially have you come back?

2080
01:26:22,320 --> 01:26:24,480
>> Yes, for sure. Yeah.

2081
01:26:24,480 --> 01:26:26,239
>> What is your expectation on a timeline

2082
01:26:26,239 --> 01:26:28,239
or hope for a timeline on this? I mean

2083
01:26:28,239 --> 01:26:31,120
once we talk about it, review it, what is that point?

2084
01:26:31,120 --> 01:26:35,120
>> I would say let's uh let's review what

2085
01:26:35,120 --> 01:26:39,040
how Brandon is proposing that we we do a

2086
01:26:39,040 --> 01:26:42,000
null implementation of of some of these

2087
01:26:42,000 --> 01:26:43,920
>> the next presentation which is our next

2088
01:26:43,920 --> 01:26:44,480
item.

2089
01:26:44,480 --> 01:26:46,800
>> Oh, so you've got some ideas for them.

2090
01:26:46,800 --> 01:26:49,840
>> It's it's our budget. is just

2091
01:26:49,840 --> 01:26:50,800
got it ready.

2092
01:26:50,800 --> 01:26:52,639
>> I mean, again, you notice that Fred had

2093
01:26:52,639 --> 01:26:59,840
a little bit of he he gave you a very 50,000 foot level uh preview of

2094
01:26:59,840 --> 01:27:01,679
some of what we might propose in the

2095
01:27:01,679 --> 01:27:02,480
budget.

2096
01:27:02,480 --> 01:27:02,800
>> Okay.

2097
01:27:02,800 --> 01:27:04,960
>> And again, it's long-term. Ultimately,

2098
01:27:04,960 --> 01:27:06,080
we deal with the budget on a

2099
01:27:06,080 --> 01:27:10,400
year-by-year basis. So guess I mean we

2100
01:27:10,400 --> 01:27:12,080
could receive feedback from you on an

2101
01:27:12,080 --> 01:27:15,120
ongoing basis with this but ideally we

2102
01:27:15,120 --> 01:27:17,760
at least get more feedback on how we

2103
01:27:17,760 --> 01:27:19,360
apply

2104
01:27:19,360 --> 01:27:21,360
some of this information or or some of

2105
01:27:21,360 --> 01:27:27,679
this uh feedback or or advice from LRV

2106
01:27:27,679 --> 01:27:29,360
for a budget year. We would hope for

2107
01:27:29,360 --> 01:27:32,000
that over the next

2108
01:27:32,000 --> 01:27:34,320
month.

2109
01:27:34,320 --> 01:27:37,040
>> Yeah. And I I think based on our

2110
01:27:37,040 --> 01:27:40,239
analysis, what we believe our objective

2111
01:27:40,239 --> 01:27:43,520
is and conclusion relative to that 50

2112
01:27:43,520 --> 01:27:45,360
foot is

2113
01:27:45,360 --> 01:27:49,360
uh there is a need and um utilizing your

2114
01:27:49,360 --> 01:27:52,400
property tax and uh that process of

2115
01:27:52,400 --> 01:27:54,239
truth and taxation and adjustments of

2116
01:27:54,239 --> 01:27:56,960
the certified tax rate should be

2117
01:27:56,960 --> 01:27:58,800
considered. Right? If if we want to

2118
01:27:58,800 --> 01:28:01,120
address inflation, recognizing the

2119
01:28:01,120 --> 01:28:02,880
limitations of your revenue stream, that

2120
01:28:02,880 --> 01:28:05,360
is where we're seeing a a need.

2121
01:28:05,360 --> 01:28:07,760
Magnitude of that is is really right up

2122
01:28:07,760 --> 01:28:09,840
to you on how aggressive you want to

2123
01:28:09,840 --> 01:28:11,760
address that. But that would be our

2124
01:28:11,760 --> 01:28:14,159
conclusion is we're seeing a need to

2125
01:28:14,159 --> 01:28:16,880
take action. And Fred, even though Lara

2126
01:28:16,880 --> 01:28:18,960
needs to go, are you still staying with

2127
01:28:18,960 --> 01:28:21,520
us here at this meeting in case there's

2128
01:28:21,520 --> 01:28:23,840
something that a connection made between

2129
01:28:23,840 --> 01:28:26,159
Brandon's presentation and and what you

2130
01:28:26,159 --> 01:28:28,239
shared with us, or do you have to uh I

2131
01:28:28,239 --> 01:28:32,560
have about 30 minutes? That's okay.

2132
01:28:32,560 --> 01:28:34,880
>> All right. Thank you. All right,

2133
01:28:34,880 --> 01:28:36,800
council. How are we doing? Do we need a

2134
01:28:36,800 --> 01:28:40,159
five like a literal five minute break?

2135
01:28:40,159 --> 01:28:43,440
>> Three minute break.

2136
01:28:43,440 --> 01:29:07,669
food, whatever.

2137
01:29:07,679 --> 01:29:09,199
» Well, I'm glad you didn't see my eyes

2138
01:29:09,199 --> 01:29:10,800
closed.

2139
01:29:10,800 --> 01:33:14,550
the actual president. They still be on.

2140
01:33:14,560 --> 01:33:17,440
Okay. So, maybe I'll reach.

2141
01:33:17,440 --> 01:33:19,679
>> You don't have until

2142
01:33:19,679 --> 01:33:24,149
5.

2143
01:33:24,159 --> 01:33:28,159
» I hope I only have till like 4

2144
01:33:28,159 --> 01:33:30,960
10 or till five.

2145
01:33:30,960 --> 01:33:35,360
>> What? Oh, Janica's still got a piece.

2146
01:33:35,360 --> 01:33:37,199
>> Be really quick.

2147
01:33:37,199 --> 01:33:39,360
>> Okay.

2148
01:33:39,360 --> 01:33:41,199
>> We did cut 10 minutes from your time.

2149
01:33:41,199 --> 01:33:44,390
>> A piece.

2150
01:33:44,400 --> 01:33:46,480
» We have we have to have five between the

2151
01:33:46,480 --> 01:33:50,870
three of us.

2152
01:33:50,880 --> 01:33:54,950
» Okay.

2153
01:33:54,960 --> 01:34:00,000
So we begin uh our first meeting among

2154
01:34:00,000 --> 01:34:01,920
several that we'll be having in relation

2155
01:34:01,920 --> 01:34:12,800
to our fiscal 27 26 27 uh budget. Uh we first start with um our the revenue

2156
01:34:12,800 --> 01:34:16,000
expectations projections that currently

2157
01:34:16,000 --> 01:34:19,280
um employing in our into our budget.

2158
01:34:19,280 --> 01:34:21,360
Uh that's usually the place that we

2159
01:34:21,360 --> 01:34:24,480
start from and then we try to mirror our

2160
01:34:24,480 --> 01:34:26,800
expenses with those revenues obviously

2161
01:34:26,800 --> 01:34:29,280
because we try to have a a balanced

2162
01:34:29,280 --> 01:34:30,719
budget.

2163
01:34:30,719 --> 01:34:33,760
Um I believe these next few slides I'm

2164
01:34:33,760 --> 01:34:35,600
not going to necessarily go over them in

2165
01:34:35,600 --> 01:34:38,880
depth but I believe um shared them with

2166
01:34:38,880 --> 01:34:41,360
each of you in regarding to one of the

2167
01:34:41,360 --> 01:34:43,440
big things that we are doing this year

2168
01:34:43,440 --> 01:34:48,239
is um separating our public safety

2169
01:34:48,239 --> 01:34:50,159
from our general fund and we are

2170
01:34:50,159 --> 01:34:52,639
creating a what's what's called a

2171
01:34:52,639 --> 01:34:56,560
special revenue fund and the the

2172
01:34:56,560 --> 01:34:59,280
expectation would be that all revenues

2173
01:34:59,280 --> 01:35:02,159
that are direct directly associated with

2174
01:35:02,159 --> 01:35:05,120
public safety would also follow that and

2175
01:35:05,120 --> 01:35:07,040
that we would then go through a process

2176
01:35:07,040 --> 01:35:09,920
of dedicating our entire property

2177
01:35:09,920 --> 01:35:13,360
currently our entire property tax

2178
01:35:13,360 --> 01:35:15,520
through that fund as well. So that all

2179
01:35:15,520 --> 01:35:19,360
property tax dollars are assigned and

2180
01:35:19,360 --> 01:35:21,920
dedicated to the public sa this new

2181
01:35:21,920 --> 01:35:26,320
public safety special revenue fund.

2182
01:35:26,320 --> 01:35:29,360
That's what these discussions here are

2183
01:35:29,360 --> 01:35:31,520
talking about as far as creating that

2184
01:35:31,520 --> 01:35:34,639
special revenue fund. And then we would

2185
01:35:34,639 --> 01:35:38,320
later come to you during that meeting in

2186
01:35:38,320 --> 01:35:40,560
May when we would bring you the tenative

2187
01:35:40,560 --> 01:35:44,320
budget. There would also be a resolution

2188
01:35:44,320 --> 01:35:48,159
that you would then uh pass. I would

2189
01:35:48,159 --> 01:35:50,719
then deliver that resolution to the

2190
01:35:50,719 --> 01:35:53,199
county who would go through the process

2191
01:35:53,199 --> 01:35:57,199
then of changing that property tax name.

2192
01:35:57,199 --> 01:35:59,280
So it would no longer say city of ORM,

2193
01:35:59,280 --> 01:36:03,280
it would say city of Oram public safety.

2194
01:36:03,280 --> 01:36:07,600
Um and they would do that magic within

2195
01:36:07,600 --> 01:36:09,199
their system as far as property tax

2196
01:36:09,199 --> 01:36:13,360
goes. Um just mayor council I think I've

2197
01:36:13,360 --> 01:36:15,280
shared this with most of you but I still

2198
01:36:15,280 --> 01:36:17,120
have a couple left that I need to share

2199
01:36:17,120 --> 01:36:19,280
the details on.

2200
01:36:19,280 --> 01:36:21,760
>> Thank you for clarifying.

2201
01:36:21,760 --> 01:36:23,440
Um

2202
01:36:23,440 --> 01:36:25,120
you can see here the implementation

2203
01:36:25,120 --> 01:36:27,040
timeline that I just mentioned in

2204
01:36:27,040 --> 01:36:29,920
relation to the tenative budget and the

2205
01:36:29,920 --> 01:36:34,239
resolution related to that. Um and then

2206
01:36:34,239 --> 01:36:38,560
later on in the uh June meeting where we

2207
01:36:38,560 --> 01:36:41,040
normally adopt the budget and we would

2208
01:36:41,040 --> 01:36:45,280
adopt the um that property tax change as

2209
01:36:45,280 --> 01:36:50,159
well as that change in the fund um that

2210
01:36:50,159 --> 01:36:53,679
would now exist.

2211
01:36:53,679 --> 01:36:56,480
So, and and here's a just a general look

2212
01:36:56,480 --> 01:36:59,760
as to where that sits in relation to

2213
01:36:59,760 --> 01:37:01,920
those revenue sources that would be

2214
01:37:01,920 --> 01:37:04,800
applied um directly to that new special

2215
01:37:04,800 --> 01:37:06,560
revenue fund.

2216
01:37:06,560 --> 01:37:09,119
Um, I'm giving you an idea of what our

2217
01:37:09,119 --> 01:37:11,360
26 adopted budget, those ob those

2218
01:37:11,360 --> 01:37:13,360
numbers obviously are currently in our

2219
01:37:13,360 --> 01:37:15,760
general fund, but for comparison's sake,

2220
01:37:15,760 --> 01:37:17,280
I wanted to make sure that you were

2221
01:37:17,280 --> 01:37:18,960
aware of what they were within our

2222
01:37:18,960 --> 01:37:20,400
general fund and what they would look

2223
01:37:20,400 --> 01:37:23,600
like um inside that new special revenue

2224
01:37:23,600 --> 01:37:26,790
fund.

2225
01:37:26,800 --> 01:37:30,080
Um besides property taxes, we also have

2226
01:37:30,080 --> 01:37:33,360
fire fire um sources from both Lyndon

2227
01:37:33,360 --> 01:37:37,679
and um Lynon and Vineyard. Um we receive

2228
01:37:37,679 --> 01:37:39,679
ambulance for any ambulance service that

2229
01:37:39,679 --> 01:37:44,159
we've uh those customers who are using

2230
01:37:44,159 --> 01:37:46,719
ambulance service. Um and then the

2231
01:37:46,719 --> 01:37:49,920
various other um energy sources that I

2232
01:37:49,920 --> 01:37:51,600
mentioned that are directly related to

2233
01:37:51,600 --> 01:37:52,719
the work that they do.

2234
01:37:52,719 --> 01:37:56,239
>> Liquor aotment. So we have liquor

2235
01:37:56,239 --> 01:37:57,840
control officers. Okay.

2236
01:37:57,840 --> 01:38:00,159
>> Um and they do work and then we're paid

2237
01:38:00,159 --> 01:38:04,390
through

2238
01:38:04,400 --> 01:38:05,119
» UHP.

2239
01:38:05,119 --> 01:38:07,280
>> Yeah.

2240
01:38:07,280 --> 01:38:07,520
>> Yes.

2241
01:38:07,520 --> 01:38:09,040
>> PBS

2242
01:38:09,040 --> 01:38:10,960
like

2243
01:38:10,960 --> 01:38:12,800
they they do an a lotment every year

2244
01:38:12,800 --> 01:38:14,080
based on

2245
01:38:14,080 --> 01:38:15,679
>> Yeah.

2246
01:38:15,679 --> 01:38:17,520
>> Okay.

2247
01:38:17,520 --> 01:38:20,000
>> Um this is one of the the important

2248
01:38:20,000 --> 01:38:21,920
screens that I want to focus on during

2249
01:38:21,920 --> 01:38:25,679
the meetings. Um, as you see, uh, we

2250
01:38:25,679 --> 01:38:29,600
talked about and Fred gave an idea of

2251
01:38:29,600 --> 01:38:30,960
So, first, Bob, I want to make sure

2252
01:38:30,960 --> 01:38:34,320
everybody understands the disconnection

2253
01:38:34,320 --> 01:38:38,800
between the rate and the revenue.

2254
01:38:38,800 --> 01:38:41,679
You'll notice over time the certified

2255
01:38:41,679 --> 01:38:46,080
tax rate change. This column right here,

2256
01:38:46,080 --> 01:38:48,560
you'll notice all of those changes are

2257
01:38:48,560 --> 01:38:51,600
negative percentages.

2258
01:38:51,600 --> 01:38:54,000
you go to the right as far as revenue

2259
01:38:54,000 --> 01:38:56,800
goes, those are all positive

2260
01:38:56,800 --> 01:38:58,560
percentages.

2261
01:38:58,560 --> 01:39:01,760
So, one does not equate to the other in

2262
01:39:01,760 --> 01:39:04,320
that regard. So, if you'll recall in

2263
01:39:04,320 --> 01:39:06,719
both Lauria and Phil what they were

2264
01:39:06,719 --> 01:39:09,600
Fred, what they were talking about,

2265
01:39:09,600 --> 01:39:12,000
revenue

2266
01:39:12,000 --> 01:39:14,320
stays the same. We are we're in essence

2267
01:39:14,320 --> 01:39:16,400
guaranteed the same amount of revenue

2268
01:39:16,400 --> 01:39:18,719
each year.

2269
01:39:18,719 --> 01:39:20,560
What I have then done is said here's

2270
01:39:20,560 --> 01:39:23,520
what our fiscal 26 was and that's actual

2271
01:39:23,520 --> 01:39:25,760
and then I said well let's just make an

2272
01:39:25,760 --> 01:39:28,480
assumption here in 27. Let's assume

2273
01:39:28,480 --> 01:39:31,119
property tax values

2274
01:39:31,119 --> 01:39:34,080
are stable or maybe even continue to

2275
01:39:34,080 --> 01:39:35,920
increase a little bit. If they increase

2276
01:39:35,920 --> 01:39:39,040
a little bit and our revenue stayed the

2277
01:39:39,040 --> 01:39:42,080
same or in this case I increased it by a

2278
01:39:42,080 --> 01:39:44,719
whopping 32 grand

2279
01:39:44,719 --> 01:39:46,960
which is a half% increase. So that's

2280
01:39:46,960 --> 01:39:49,679
even higher. That would be even a higher

2281
01:39:49,679 --> 01:39:51,679
revenue number than the year before

2282
01:39:51,679 --> 01:39:55,440
which was.3% increase.

2283
01:39:55,440 --> 01:39:58,800
You would produce a another negative

2284
01:39:58,800 --> 01:40:00,960
certified tax rate meaning it would go

2285
01:40:00,960 --> 01:40:03,840
down again.

2286
01:40:03,840 --> 01:40:06,320
We have talked about a property tax

2287
01:40:06,320 --> 01:40:09,760
increase and and in this model I've put

2288
01:40:09,760 --> 01:40:12,320
in just for an example I've added

2289
01:40:12,320 --> 01:40:14,320
$450,000.

2290
01:40:14,320 --> 01:40:18,560
See the difference between the 32,071

2291
01:40:18,560 --> 01:40:20,639
and the 482071

2292
01:40:20,639 --> 01:40:23,199
over here on the right. That equates to

2293
01:40:23,199 --> 01:40:26,719
about a 7% increase. Right? We add the

2294
01:40:26,719 --> 01:40:29,040
what was already there. So that's a 7%

2295
01:40:29,040 --> 01:40:32,800
increase by adding that $450,000.

2296
01:40:32,800 --> 01:40:34,960
And you can see what then that would

2297
01:40:34,960 --> 01:40:37,520
mean over there on this side. What that

2298
01:40:37,520 --> 01:40:41,520
would mean to our certified tax rate.

2299
01:40:41,520 --> 01:40:44,080
To be honest, that's a total guess. All

2300
01:40:44,080 --> 01:40:47,840
I did is say if it went up 7% over on

2301
01:40:47,840 --> 01:40:50,000
the revenue side, I'm going to make an

2302
01:40:50,000 --> 01:40:51,920
assumption that it the certified tax

2303
01:40:51,920 --> 01:40:54,800
rate would go up 7%. That's not going to

2304
01:40:54,800 --> 01:40:57,920
be true. But I just for so you can just

2305
01:40:57,920 --> 01:41:01,119
see it should cause that certified tax

2306
01:41:01,119 --> 01:41:03,280
rate to have a positive increase. It may

2307
01:41:03,280 --> 01:41:08,080
or may not be 7%. because I have no idea

2308
01:41:08,080 --> 01:41:11,199
at this point until June 8th

2309
01:41:11,199 --> 01:41:14,320
what our certified tax rate is and will

2310
01:41:14,320 --> 01:41:17,840
be. But hopefully this gives you some

2311
01:41:17,840 --> 01:41:20,800
idea of how those two things interplay

2312
01:41:20,800 --> 01:41:23,440
with each other.

2313
01:41:23,440 --> 01:41:26,000
And then as uh both Laura and Fred

2314
01:41:26,000 --> 01:41:30,159
mentioned, new tax law would require if

2315
01:41:30,159 --> 01:41:32,719
we were to do a property tax increase

2316
01:41:32,719 --> 01:41:36,480
requires us to provide a property tax uh

2317
01:41:36,480 --> 01:41:38,480
impact statement. If we're going to

2318
01:41:38,480 --> 01:41:40,639
increase, what would we be spending it

2319
01:41:40,639 --> 01:41:43,119
on? And then that's what this bottom

2320
01:41:43,119 --> 01:41:45,440
section down across the bottom is trying

2321
01:41:45,440 --> 01:41:47,600
to relay. We would then in that impact

2322
01:41:47,600 --> 01:41:49,679
statement, we would outline all the

2323
01:41:49,679 --> 01:41:51,760
things that it requires as far as that

2324
01:41:51,760 --> 01:41:54,320
goes and then say here is what we would

2325
01:41:54,320 --> 01:41:57,440
be spending those additional tax dollars

2326
01:41:57,440 --> 01:41:59,920
on.

2327
01:41:59,920 --> 01:42:01,600
And you can see kind of that breakdown

2328
01:42:01,600 --> 01:42:04,320
of h how those two additional officers

2329
01:42:04,320 --> 01:42:06,480
that we would be adding how that would

2330
01:42:06,480 --> 01:42:08,719
play.

2331
01:42:08,719 --> 01:42:11,040
Now, I want to point out, you'll notice

2332
01:42:11,040 --> 01:42:13,040
that the little asterisk down at the

2333
01:42:13,040 --> 01:42:16,960
stars at the bottom on this slide, it

2334
01:42:16,960 --> 01:42:22,080
does not include that 450,000

2335
01:42:22,080 --> 01:42:23,119
because I don't want to make an

2336
01:42:23,119 --> 01:42:25,520
assumption that that's going to happen.

2337
01:42:25,520 --> 01:42:28,080
So, this slide is just trying to be

2338
01:42:28,080 --> 01:42:30,400
representative of if that was to happen,

2339
01:42:30,400 --> 01:42:32,639
what would that kind of look like?

2340
01:42:32,639 --> 01:42:35,040
Brandon, would you would you educate the

2341
01:42:35,040 --> 01:42:38,159
council on the difference between 6.9

2342
01:42:38,159 --> 01:42:40,880
million versus 8.1 million in terms of

2343
01:42:40,880 --> 01:42:43,440
the property tax total revenue?

2344
01:42:43,440 --> 01:42:46,320
>> Okay. So, yeah. So, this so is you may

2345
01:42:46,320 --> 01:42:48,560
or may not know our our certified tax

2346
01:42:48,560 --> 01:42:50,480
rate consists of two elements. City

2347
01:42:50,480 --> 01:42:53,840
operations and our debt general

2348
01:42:53,840 --> 01:42:56,480
obligation debt.

2349
01:42:56,480 --> 01:42:58,159
is always

2350
01:42:58,159 --> 01:43:00,480
covered 100%.

2351
01:43:00,480 --> 01:43:03,119
So no matter what it is, I provide that

2352
01:43:03,119 --> 01:43:05,440
information to the county. The county

2353
01:43:05,440 --> 01:43:08,000
then sets whatever the rate needs to be

2354
01:43:08,000 --> 01:43:10,719
to produce that amount of income in

2355
01:43:10,719 --> 01:43:12,719
order to cover the general obligation

2356
01:43:12,719 --> 01:43:15,760
debt. They then do another calculation

2357
01:43:15,760 --> 01:43:18,239
based on all of the assessments that

2358
01:43:18,239 --> 01:43:21,360
they do in order to produce same

2359
01:43:21,360 --> 01:43:24,159
property tax amount. Well, it's new

2360
01:43:24,159 --> 01:43:26,560
growth, but for lack of a better uh

2361
01:43:26,560 --> 01:43:28,639
we'll just take new growth out of the

2362
01:43:28,639 --> 01:43:31,199
picture, but to produce the same amount,

2363
01:43:31,199 --> 01:43:34,159
what does that new assessed value equate

2364
01:43:34,159 --> 01:43:37,199
to as far as a certified tax rate? And

2365
01:43:37,199 --> 01:43:39,040
in most cases, as you can see, that

2366
01:43:39,040 --> 01:43:41,840
means it's going to go down. So, the

2367
01:43:41,840 --> 01:43:43,760
6.89

2368
01:43:43,760 --> 01:43:45,920
million that I have there is not

2369
01:43:45,920 --> 01:43:48,159
inclusive of all property tax we

2370
01:43:48,159 --> 01:43:50,960
receive, but it is that city operational

2371
01:43:50,960 --> 01:43:53,679
piece. I've excluded the geo bond debt

2372
01:43:53,679 --> 01:43:55,679
because it's irrelevant to be honest to

2373
01:43:55,679 --> 01:43:57,280
this situation and and that's in the

2374
01:43:57,280 --> 01:43:59,679
case not only the revenue piece but also

2375
01:43:59,679 --> 01:44:02,000
on those rates those certified tax rates

2376
01:44:02,000 --> 01:44:05,520
they are only the city operational

2377
01:44:05,520 --> 01:44:07,760
Brandon that's also what we would need

2378
01:44:07,760 --> 01:44:11,360
to share and notice out to the public is

2379
01:44:11,360 --> 01:44:13,679
the percent increase just the

2380
01:44:13,679 --> 01:44:19,920
operational side not operational and

2381
01:44:19,920 --> 01:44:23,040
>> and under even the new legislative law.

2382
01:44:23,040 --> 01:44:25,920
Um, their focus, just so everybody's

2383
01:44:25,920 --> 01:44:29,199
aware, their focus is no longer on the

2384
01:44:29,199 --> 01:44:33,199
rate. Their focus is what dollars are

2385
01:44:33,199 --> 01:44:35,840
you asking for and what are you going to

2386
01:44:35,840 --> 01:44:39,040
spend them on? They also understand the

2387
01:44:39,040 --> 01:44:41,520
rate is really somewhat irrelevant. It

2388
01:44:41,520 --> 01:44:44,080
will just be what it is.

2389
01:44:44,080 --> 01:44:46,960
They want you as a body and us as staff

2390
01:44:46,960 --> 01:44:49,760
to focus on what is it that you have a

2391
01:44:49,760 --> 01:44:53,360
need for additional property taxes. So

2392
01:44:53,360 --> 01:44:55,840
that's what this kind of stresses.

2393
01:44:55,840 --> 01:44:58,000
But before I move on, there any

2394
01:44:58,000 --> 01:45:02,239
questions about this new fund andor

2395
01:45:02,239 --> 01:45:06,149
property tax element?

2396
01:45:06,159 --> 01:45:09,520
» Uh one question is is this a new fund a

2397
01:45:09,520 --> 01:45:11,360
vehicle that is newly available to us or

2398
01:45:11,360 --> 01:45:12,719
has it always been available to us?

2399
01:45:12,719 --> 01:45:17,760
>> No. So the special revenue funds are we have several already that exist

2400
01:45:17,760 --> 01:45:20,560
within the city. Um the the difference

2401
01:45:20,560 --> 01:45:23,679
here is that dedication of the property

2402
01:45:23,679 --> 01:45:27,440
tax to that specific fund. And so if you

2403
01:45:27,440 --> 01:45:29,119
dedicate it to that specific fund,

2404
01:45:29,119 --> 01:45:31,600
obviously we have to account for it as

2405
01:45:31,600 --> 01:45:34,400
such. And so in order to account for it

2406
01:45:34,400 --> 01:45:36,880
has to have its own fund so that it's

2407
01:45:36,880 --> 01:45:39,440
transparent and readily visible that

2408
01:45:39,440 --> 01:45:41,119
those all of those dollars are being

2409
01:45:41,119 --> 01:45:42,639
spent on what you said you were

2410
01:45:42,639 --> 01:45:46,950
dedicating those dollars for.

2411
01:45:46,960 --> 01:45:50,239
Ren, isn't a dedicating property tax

2412
01:45:50,239 --> 01:45:54,000
andor public safety dedicated fund isn't

2413
01:45:54,000 --> 01:45:56,960
that relatively recent

2414
01:45:56,960 --> 01:45:58,813
state legislation over the last handful

2415
01:45:58,813 --> 01:46:00,880
[clears throat] of years or am I

2416
01:46:00,880 --> 01:46:02,719
>> uh yeah, that that may that part the

2417
01:46:02,719 --> 01:46:04,560
dedication of the property tax. I don't

2418
01:46:04,560 --> 01:46:06,800
know that part as far as when that went

2419
01:46:06,800 --> 01:46:09,360
into effect.

2420
01:46:09,360 --> 01:46:10,800
cities I know of that have done it have

2421
01:46:10,800 --> 01:46:14,400
been within the past couple years but

2422
01:46:14,400 --> 01:46:18,639
>> so it at least in implementation

2423
01:46:18,639 --> 01:46:20,639
uh cities have only been doing it within

2424
01:46:20,639 --> 01:46:24,000
the last few years but Jica I'll have

2425
01:46:24,000 --> 01:46:26,639
Jennica do some research on when this

2426
01:46:26,639 --> 01:46:32,149
became a possibility

2427
01:46:32,159 --> 01:46:34,400
just to give you a b hopefully a brief

2428
01:46:34,400 --> 01:46:37,040
timeline idea there's two timelines one

2429
01:46:37,040 --> 01:46:38,719
with a property tax increase and one

2430
01:46:38,719 --> 01:46:41,760
without we'll just

2431
01:46:41,760 --> 01:46:45,440
no property tax increase one slide

2432
01:46:45,440 --> 01:46:49,280
meet on May 12th pass a tenative budget

2433
01:46:49,280 --> 01:46:53,679
meet on June 9th pass an adopted budget

2434
01:46:53,679 --> 01:46:55,920
it's all we do all the proper noticing

2435
01:46:55,920 --> 01:46:58,000
that we're required to do I give some

2436
01:46:58,000 --> 01:47:00,960
presentations you have in between those

2437
01:47:00,960 --> 01:47:03,280
two dates you when I give you that

2438
01:47:03,280 --> 01:47:05,440
tenative budget you have the opportunity

2439
01:47:05,440 --> 01:47:08,560
to ask questions review whatever

2440
01:47:08,560 --> 01:47:10,800
make whatever changes you want to see in

2441
01:47:10,800 --> 01:47:13,280
it. Um, and we would then come forth

2442
01:47:13,280 --> 01:47:15,600
with those changes in that June 9th

2443
01:47:15,600 --> 01:47:19,119
meeting and you would pass um and adopt

2444
01:47:19,119 --> 01:47:21,600
that budget at that time. Relatively

2445
01:47:21,600 --> 01:47:24,560
straightforward.

2446
01:47:24,560 --> 01:47:26,320
You want to do a property tax increase.

2447
01:47:26,320 --> 01:47:29,440
However, um, under the new guidelines

2448
01:47:29,440 --> 01:47:32,480
that May 12th meeting would have various

2449
01:47:32,480 --> 01:47:35,520
conditions related to it. uh have to

2450
01:47:35,520 --> 01:47:38,400
notice on the agenda for that meeting

2451
01:47:38,400 --> 01:47:40,880
has to be a separate agenda item. I have

2452
01:47:40,880 --> 01:47:42,800
to indicate that there's a property tax

2453
01:47:42,800 --> 01:47:44,880
increase included in the tenative

2454
01:47:44,880 --> 01:47:48,320
budget. I have to also state that there

2455
01:47:48,320 --> 01:47:51,280
is a impact statement in that budget

2456
01:47:51,280 --> 01:47:54,560
document as well. And then that's in the

2457
01:47:54,560 --> 01:47:56,239
agenda. And then I actually when we're

2458
01:47:56,239 --> 01:47:57,760
at the meeting, I actually have to say

2459
01:47:57,760 --> 01:48:00,639
that again. Um and yeah,

2460
01:48:00,639 --> 01:48:01,199
>> out loud.

2461
01:48:01,199 --> 01:48:05,280
Uh and so Yeah. So then

2462
01:48:05,280 --> 01:48:07,440
everybody's then put on notice that,

2463
01:48:07,440 --> 01:48:09,440
hey, our budget includes a property, a

2464
01:48:09,440 --> 01:48:11,840
potential proposed property tax

2465
01:48:11,840 --> 01:48:16,159
increase. We then would go to June 9th

2466
01:48:16,159 --> 01:48:18,239
and in that June 9th meeting, assuming

2467
01:48:18,239 --> 01:48:20,400
we want to continue with that uh

2468
01:48:20,400 --> 01:48:23,520
proposed property tax increase, then

2469
01:48:23,520 --> 01:48:25,440
same thing, I have to include those same

2470
01:48:25,440 --> 01:48:28,000
things on the agenda. We also have to

2471
01:48:28,000 --> 01:48:31,440
produce um that that do that impact

2472
01:48:31,440 --> 01:48:33,040
statement which has to stay there. And

2473
01:48:33,040 --> 01:48:34,880
then we have to in that meeting have to

2474
01:48:34,880 --> 01:48:36,880
indicate those four bullet point items

2475
01:48:36,880 --> 01:48:39,199
that are there that we are intending to

2476
01:48:39,199 --> 01:48:41,440
exceed the certified tax rate as given

2477
01:48:41,440 --> 01:48:45,280
to us by the county. We intend to the

2478
01:48:45,280 --> 01:48:47,440
those approximations of what the impact

2479
01:48:47,440 --> 01:48:49,920
of that will be and when we would be

2480
01:48:49,920 --> 01:48:53,840
holding uh the public hearing in

2481
01:48:53,840 --> 01:48:56,639
relation to that property tax increase

2482
01:48:56,639 --> 01:48:59,199
which would be sometime in August as

2483
01:48:59,199 --> 01:49:01,520
determined between us negotiated if you

2484
01:49:01,520 --> 01:49:03,600
will between us and the county.

2485
01:49:03,600 --> 01:49:05,280
>> How does that work if your budget is

2486
01:49:05,280 --> 01:49:06,880
when when do we pass the budget? June

2487
01:49:06,880 --> 01:49:09,440
9th. So, if we were going to do a

2488
01:49:09,440 --> 01:49:11,760
property tax increase, what you would

2489
01:49:11,760 --> 01:49:15,360
actually then be um

2490
01:49:15,360 --> 01:49:18,239
what you would actually be passing is

2491
01:49:18,239 --> 01:49:22,000
what they then call an interim budget.

2492
01:49:22,000 --> 01:49:24,000
And in that interim budget, it would

2493
01:49:24,000 --> 01:49:25,840
exclude you would pass everything

2494
01:49:25,840 --> 01:49:27,920
potentially pass everything else

2495
01:49:27,920 --> 01:49:30,960
>> except for the property tax component

2496
01:49:30,960 --> 01:49:33,520
which has to be separated.

2497
01:49:33,520 --> 01:49:35,440
>> That's what Laura was talking about.

2498
01:49:35,440 --> 01:49:38,800
everything else and you then have to

2499
01:49:38,800 --> 01:49:41,679
obviously not spend any of those dollars

2500
01:49:41,679 --> 01:49:43,920
that that increase is linked to.

2501
01:49:43,920 --> 01:49:46,080
>> So basically public safety would just be

2502
01:49:46,080 --> 01:49:47,360
on hold in those

2503
01:49:47,360 --> 01:49:49,840
>> those two officers or whatever I was

2504
01:49:49,840 --> 01:49:50,400
talking.

2505
01:49:50,400 --> 01:49:50,719
>> Okay.

2506
01:49:50,719 --> 01:49:51,679
>> Correct.

2507
01:49:51,679 --> 01:49:54,239
>> Thank you. And so the then you identify

2508
01:49:54,239 --> 01:49:56,880
that then when you go to the property

2509
01:49:56,880 --> 01:49:58,960
tax increase all you're then really if

2510
01:49:58,960 --> 01:50:00,320
you were to pass go ahead and pass

2511
01:50:00,320 --> 01:50:02,960
everything else then all you're doing at

2512
01:50:02,960 --> 01:50:05,440
that that is passing it saying this is

2513
01:50:05,440 --> 01:50:07,440
what we want to do going forward and

2514
01:50:07,440 --> 01:50:09,760
then once it's passed it's then included

2515
01:50:09,760 --> 01:50:11,600
within our adopted budget at that

2516
01:50:11,600 --> 01:50:12,800
>> if it doesn't pass you have to amend

2517
01:50:12,800 --> 01:50:15,760
your budget. If we if you don't pass it,

2518
01:50:15,760 --> 01:50:18,480
then the interim budget in that meeting

2519
01:50:18,480 --> 01:50:20,000
would then have an ordinance that would

2520
01:50:20,000 --> 01:50:22,960
say the interim budget that we passed

2521
01:50:22,960 --> 01:50:29,830
back in June is now our final budget.

2522
01:50:29,840 --> 01:50:32,320
These are genuinely these are good

2523
01:50:32,320 --> 01:50:36,000
questions and these really are part uh

2524
01:50:36,000 --> 01:50:38,719
essentially not only truth in taxation

2525
01:50:38,719 --> 01:50:40,480
historically but the additional

2526
01:50:40,480 --> 01:50:42,320
constraints added in this last

2527
01:50:42,320 --> 01:50:44,800
legislative session in action.

2528
01:50:44,800 --> 01:50:47,360
>> I'll share from my experience being on

2529
01:50:47,360 --> 01:50:49,679
the council when we did do we had a

2530
01:50:49,679 --> 01:50:53,360
truth in taxation we we didn't have this

2531
01:50:53,360 --> 01:50:55,520
where it gets pulled out. We had to

2532
01:50:55,520 --> 01:50:56,960
approve a tenative budget and the

2533
01:50:56,960 --> 01:50:59,280
tenative budget that we had included the

2534
01:50:59,280 --> 01:51:01,040
tax increase.

2535
01:51:01,040 --> 01:51:04,159
>> And so even though we and then we

2536
01:51:04,159 --> 01:51:06,719
proceeded as though the tax increase

2537
01:51:06,719 --> 01:51:10,560
were in the budget and then at the and

2538
01:51:10,560 --> 01:51:12,000
in August when we had our truth and

2539
01:51:12,000 --> 01:51:15,199
taxation hearing, we the council voted

2540
01:51:15,199 --> 01:51:17,760
to change the percent budget. There was

2541
01:51:17,760 --> 01:51:19,840
a property tax increase, but it wasn't

2542
01:51:19,840 --> 01:51:22,000
as much as what was in the budget. And

2543
01:51:22,000 --> 01:51:25,600
so you had to go back and and fix that.

2544
01:51:25,600 --> 01:51:27,840
>> Correct. You would that in your document

2545
01:51:27,840 --> 01:51:29,760
>> reflect that rather than say pull that

2546
01:51:29,760 --> 01:51:33,600
out. So just it's

2547
01:51:33,600 --> 01:51:36,080
yeah that was just our experience from

2548
01:51:36,080 --> 01:51:36,639
before.

2549
01:51:36,639 --> 01:51:39,440
>> One other fun little item is this

2550
01:51:39,440 --> 01:51:41,599
special note down at the bottom in the

2551
01:51:41,599 --> 01:51:44,080
state legislature. They also now would

2552
01:51:44,080 --> 01:51:46,719
require us in that August public hearing

2553
01:51:46,719 --> 01:51:49,119
to be able to allow people to

2554
01:51:49,119 --> 01:51:51,840
participate in that meeting. while not

2555
01:51:51,840 --> 01:51:53,920
being here. So they have to have either

2556
01:51:53,920 --> 01:51:57,920
audio, video or both capabilities to

2557
01:51:57,920 --> 01:52:01,199
participate in the meeting as well as be

2558
01:52:01,199 --> 01:52:04,639
able to write written commentary

2559
01:52:04,639 --> 01:52:07,840
um through whatever means we can provide

2560
01:52:07,840 --> 01:52:09,599
before the meeting and during the

2561
01:52:09,599 --> 01:52:11,520
meeting.

2562
01:52:11,520 --> 01:52:14,560
So that's a Pete has assured me that he

2563
01:52:14,560 --> 01:52:17,040
can make it happen, but it might be a

2564
01:52:17,040 --> 01:52:19,199
little bit tough on certain elements of

2565
01:52:19,199 --> 01:52:21,280
it. But if that we were going to go that

2566
01:52:21,280 --> 01:52:23,520
route, we would certainly uh get on the

2567
01:52:23,520 --> 01:52:25,679
horse to make sure that that was uh

2568
01:52:25,679 --> 01:52:28,639
going to be meeting that requirement.

2569
01:52:28,639 --> 01:52:30,320
>> Okay.

2570
01:52:30,320 --> 01:52:33,920
Moving on. That then leaves uh the

2571
01:52:33,920 --> 01:52:35,679
remainder of our major general fund

2572
01:52:35,679 --> 01:52:38,239
revenues, which to be honest at this

2573
01:52:38,239 --> 01:52:40,639
point, once you pull out all of that

2574
01:52:40,639 --> 01:52:42,320
other stuff, basically is sales and

2575
01:52:42,320 --> 01:52:45,599
franchise taxes in the general fund.

2576
01:52:45,599 --> 01:52:47,920
Those are the two biggest elements um in

2577
01:52:47,920 --> 01:52:51,760
there. You saw in Fred's um discussion,

2578
01:52:51,760 --> 01:52:54,560
he he used 3%. I'll be honest, we did

2579
01:52:54,560 --> 01:52:57,840
not correlate that. Um, I just put 3% in

2580
01:52:57,840 --> 01:53:00,320
because I went down to our conference

2581
01:53:00,320 --> 01:53:03,199
and the state economist said that what

2582
01:53:03,199 --> 01:53:05,520
the state is using is 4.1 for the

2583
01:53:05,520 --> 01:53:08,159
current year and 3.5

2584
01:53:08,159 --> 01:53:11,360
for fiscal 27. And I said, well, we're

2585
01:53:11,360 --> 01:53:14,159
not quite usually around what the state

2586
01:53:14,159 --> 01:53:15,440
gets because they're much more

2587
01:53:15,440 --> 01:53:19,840
diversified obviously. So I am using 3

2588
01:53:19,840 --> 01:53:23,760
12% for the current year for 26 within a

2589
01:53:23,760 --> 01:53:29,599
3% increase for 27. I will say I it's

2590
01:53:29,599 --> 01:53:31,599
probably slightly more on the aggressive

2591
01:53:31,599 --> 01:53:34,560
side than I might normally have done. Um

2592
01:53:34,560 --> 01:53:36,080
but

2593
01:53:36,080 --> 01:53:37,599
the set is where it is.

2594
01:53:37,599 --> 01:53:38,960
>> But there's nothing that mandates what

2595
01:53:38,960 --> 01:53:40,239
number you use. We can use whatever

2596
01:53:40,239 --> 01:53:41,280
number we want. essentially

2597
01:53:41,280 --> 01:53:43,360
>> you can't whatever we

2598
01:53:43,360 --> 01:53:45,840
>> more aggressive than

2599
01:53:45,840 --> 01:53:47,119
more conservative to match the last

2600
01:53:47,119 --> 01:53:48,239
couple of years.

2601
01:53:48,239 --> 01:53:49,920
>> Yes. You know he mentioned the last

2602
01:53:49,920 --> 01:53:54,159
three years were a 1% growth a negative

2603
01:53:54,159 --> 01:53:57,840
1% growth and last year was a 3% growth.

2604
01:53:57,840 --> 01:53:58,800
So

2605
01:53:58,800 --> 01:54:00,719
>> take your pick which year is this going

2606
01:54:00,719 --> 01:54:02,000
to be say what

2607
01:54:02,000 --> 01:54:04,400
>> 3% would be on the aggressive sighting

2608
01:54:04,400 --> 01:54:05,760
would be this. And

2609
01:54:05,760 --> 01:54:07,520
>> what do you think a more middle of the

2610
01:54:07,520 --> 01:54:10,639
road number would be? Two.

2611
01:54:10,639 --> 01:54:12,639
Thank you.

2612
01:54:12,639 --> 01:54:14,800
>> Um, and as you can see, most of the

2613
01:54:14,800 --> 01:54:18,080
other revenues um are pretty and Fred

2614
01:54:18,080 --> 01:54:19,760
even pointed out there's not a lot of

2615
01:54:19,760 --> 01:54:21,199
growth in those. They're not very big

2616
01:54:21,199 --> 01:54:23,119
dollars, even the ones that do have high

2617
01:54:23,119 --> 01:54:27,360
percentages. Um, so those kind of things

2618
01:54:27,360 --> 01:54:29,520
are and you might notice interest

2619
01:54:29,520 --> 01:54:31,360
earnings are going down. We spent a lot

2620
01:54:31,360 --> 01:54:33,119
of money on a particular building. I

2621
01:54:33,119 --> 01:54:35,280
won't know which won't say which one but

2622
01:54:35,280 --> 01:54:37,599
uh that re really reduces the amount of

2623
01:54:37,599 --> 01:54:39,679
interest earnings that uh the general

2624
01:54:39,679 --> 01:54:42,320
fund receives.

2625
01:54:42,320 --> 01:54:45,760
>> Any questions before I move on?

2626
01:54:45,760 --> 01:54:47,440
>> All right.

2627
01:54:47,440 --> 01:54:50,239
>> Talked about utopia here. Just a slide

2628
01:54:50,239 --> 01:54:52,960
to give you an idea of what the last uh

2629
01:54:52,960 --> 01:54:54,880
five years have been and what we maybe

2630
01:54:54,880 --> 01:54:59,599
we are expecting for fiscal 27. Um

2631
01:54:59,599 --> 01:55:02,239
fiscal 23 was really the year where they

2632
01:55:02,239 --> 01:55:05,599
really started to bump things up uh and

2633
01:55:05,599 --> 01:55:09,840
start producing really a bigger um not

2634
01:55:09,840 --> 01:55:12,400
just matching that 2% that Fred

2635
01:55:12,400 --> 01:55:15,360
mentioned the 2% growth in our payment.

2636
01:55:15,360 --> 01:55:16,639
That [snorts] was the year they really

2637
01:55:16,639 --> 01:55:19,119
bumped it well beyond that that just

2638
01:55:19,119 --> 01:55:23,830
covering that 2%.

2639
01:55:23,840 --> 01:55:27,520
Uh cemetery fees are also general fund

2640
01:55:27,520 --> 01:55:30,480
related. Um and so and people have a

2641
01:55:30,480 --> 01:55:32,719
general interest in cemetery fees. So

2642
01:55:32,719 --> 01:55:34,639
this gives you an idea of what we're

2643
01:55:34,639 --> 01:55:37,760
looking for in relation to uh an

2644
01:55:37,760 --> 01:55:42,229
increase in those fees.

2645
01:55:42,239 --> 01:55:44,239
» When did we look at those last couple

2646
01:55:44,239 --> 01:55:44,639
years?

2647
01:55:44,639 --> 01:55:46,400
>> We look at Yeah, we adjust them every

2648
01:55:46,400 --> 01:55:50,159
year. And

2649
01:55:50,159 --> 01:55:53,280
um so now I'm going to talk about all of

2650
01:55:53,280 --> 01:55:55,280
the other fund, not all of them, but all

2651
01:55:55,280 --> 01:55:57,440
of the other major funds. And before we

2652
01:55:57,440 --> 01:55:59,119
get there, I wanted to before we start

2653
01:55:59,119 --> 01:56:00,639
talking about rates and different things

2654
01:56:00,639 --> 01:56:03,199
in relation to those funds, I just want

2655
01:56:03,199 --> 01:56:05,040
to kind of get and I realize, okay,

2656
01:56:05,040 --> 01:56:06,960
that's pretty tall. It's much smaller on

2657
01:56:06,960 --> 01:56:07,360
here.

2658
01:56:07,360 --> 01:56:08,719
>> I'm good.

2659
01:56:08,719 --> 01:56:12,880
>> So I wanted to give you an idea.

2660
01:56:12,880 --> 01:56:16,400
what is being included in these rates

2661
01:56:16,400 --> 01:56:18,800
that you're going to see for each fund

2662
01:56:18,800 --> 01:56:23,360
and what they look like in total.

2663
01:56:23,360 --> 01:56:26,960
You'll see that all of our rates, which

2664
01:56:26,960 --> 01:56:28,639
we didn't I didn't put it on there, but

2665
01:56:28,639 --> 01:56:31,840
those are all the fiscal 27 proposed

2666
01:56:31,840 --> 01:56:35,040
rates. what that would mean

2667
01:56:35,040 --> 01:56:40,880
comparatively to all the other cities

2668
01:56:40,880 --> 01:56:44,080
current rates for fiscal 26.

2669
01:56:44,080 --> 01:56:46,000
And then out here on this far right

2670
01:56:46,000 --> 01:56:50,320
side, we make an estimate

2671
01:56:50,320 --> 01:56:53,760
of based on some historical past what

2672
01:56:53,760 --> 01:56:56,400
those rates that they might Ours you'll

2673
01:56:56,400 --> 01:56:58,159
notice is the same 140 either way

2674
01:56:58,159 --> 01:57:00,239
because those are our fiscal 27 proposed

2675
01:57:00,239 --> 01:57:02,719
rates. But what would those other cities

2676
01:57:02,719 --> 01:57:05,679
rates look like if they do that normal

2677
01:57:05,679 --> 01:57:07,920
historical average kind of increase to

2678
01:57:07,920 --> 01:57:09,840
their rates? So that we're in essence

2679
01:57:09,840 --> 01:57:11,599
kind of comparing apples to apples as

2680
01:57:11,599 --> 01:57:14,080
best we can.

2681
01:57:14,080 --> 01:57:17,280
That's just related to utilities.

2682
01:57:17,280 --> 01:57:20,239
Um then I just want this includes the

2683
01:57:20,239 --> 01:57:23,520
property tax and this number right here

2684
01:57:23,520 --> 01:57:27,440
does include a property tax increase. It

2685
01:57:27,440 --> 01:57:30,800
would be about a dollar and a4 dollar30

2686
01:57:30,800 --> 01:57:32,320
less

2687
01:57:32,320 --> 01:57:35,360
if you were to not do a property tax

2688
01:57:35,360 --> 01:57:36,400
increase.

2689
01:57:36,400 --> 01:57:40,000
>> Still just above Springville.

2690
01:57:40,000 --> 01:57:43,119
>> Correct. So you would be just right

2691
01:57:43,119 --> 01:57:44,800
around where they're at. Yeah. Just

2692
01:57:44,800 --> 01:57:46,080
barely above normal.

2693
01:57:46,080 --> 01:57:48,159
>> The proposed number is where is compared

2694
01:57:48,159 --> 01:57:50,080
against their existing number.

2695
01:57:50,080 --> 01:57:50,560
>> Okay.

2696
01:57:50,560 --> 01:57:51,920
>> So that's proposed.

2697
01:57:51,920 --> 01:57:52,560
>> A little better.

2698
01:57:52,560 --> 01:57:55,199
>> Yeah. These numbers are all where they

2699
01:57:55,199 --> 01:57:58,560
currently exist. There is no estimation

2700
01:57:58,560 --> 01:58:00,639
included in here if they were to do any

2701
01:58:00,639 --> 01:58:03,920
kind of property tax increase.

2702
01:58:03,920 --> 01:58:05,760
That one we definitely don't know at

2703
01:58:05,760 --> 01:58:07,360
this point which one of those are doing

2704
01:58:07,360 --> 01:58:09,040
anything. But Brandon, I'd like to

2705
01:58:09,040 --> 01:58:12,320
highlight something you said. Uh the

2706
01:58:12,320 --> 01:58:14,639
proposed if we were to do what you're

2707
01:58:14,639 --> 01:58:18,719
proposing, so a $450,000 a year increase

2708
01:58:18,719 --> 01:58:22,159
in total property tax revenue. The

2709
01:58:22,159 --> 01:58:24,800
average impact for sort of an average

2710
01:58:24,800 --> 01:58:28,000
home, we guesstimate about a dollar and

2711
01:58:28,000 --> 01:58:33,510
a quarter per month.

2712
01:58:33,520 --> 01:58:35,440
» That's really close to what what we

2713
01:58:35,440 --> 01:58:39,679
experienced back um what was it 2012

2714
01:58:39,679 --> 01:58:41,199
the $3 million?

2715
01:58:41,199 --> 01:58:43,119
>> Yeah, it was 2012. It was about I

2716
01:58:43,119 --> 01:58:44,080
remember people saying it was like

2717
01:58:44,080 --> 01:58:46,400
getting a a hamburger, a combo.

2718
01:58:46,400 --> 01:58:48,480
>> Yeah. A happy meal. So it was like five

2719
01:58:48,480 --> 01:58:52,159
bucks for for three million. So $1 is

2720
01:58:52,159 --> 01:58:54,800
going to be around 600,000 or so,

2721
01:58:54,800 --> 01:58:57,679
500,000. So it's very similar to what we

2722
01:58:57,679 --> 01:58:59,119
experienced back then.

2723
01:58:59,119 --> 01:59:01,920
>> So about $15 a year.

2724
01:59:01,920 --> 01:59:03,280
>> Yeah. We have to see that's

2725
01:59:03,280 --> 01:59:04,320
>> So But what

2726
01:59:04,320 --> 01:59:05,679
>> average? So

2727
01:59:05,679 --> 01:59:06,880
>> yeah, what average house prices have

2728
01:59:06,880 --> 01:59:08,400
been using?

2729
01:59:08,400 --> 01:59:11,360
>> What what's the house average?

2730
01:59:11,360 --> 01:59:13,440
>> 513. 513.

2731
01:59:13,440 --> 01:59:15,440
>> That has been there for years, right?

2732
01:59:15,440 --> 01:59:17,280
Well, we actually well we increased that

2733
01:59:17,280 --> 01:59:19,360
based on what the county tells us the

2734
01:59:19,360 --> 01:59:20,960
average rate is.

2735
01:59:20,960 --> 01:59:23,119
>> So the county tells us what our average

2736
01:59:23,119 --> 01:59:24,880
>> 7800 we're going to be paying more than

2737
01:59:24,880 --> 01:59:26,080
a happy meal.

2738
01:59:26,080 --> 01:59:26,880
>> Yeah.

2739
01:59:26,880 --> 01:59:28,480
>> Just full disclosure. I just don't want

2740
01:59:28,480 --> 01:59:29,520
to tell

2741
01:59:29,520 --> 01:59:31,440
>> per year. Not that it's going to be bad.

2742
01:59:31,440 --> 01:59:32,480
It's probably

2743
01:59:32,480 --> 01:59:33,840
>> super sized happy.

2744
01:59:33,840 --> 01:59:38,149
>> Super

2745
01:59:38,159 --> 01:59:40,159
stuck on that one. Right. And that's

2746
01:59:40,159 --> 01:59:41,280
interesting to know that it came from

2747
01:59:41,280 --> 01:59:43,119
the county.

2748
01:59:43,119 --> 01:59:44,480
It's never been changed.

2749
01:59:44,480 --> 01:59:46,400
>> Yeah. It will not do you remember?

2750
01:59:46,400 --> 01:59:48,000
>> Yeah. So I get I get those updated

2751
01:59:48,000 --> 01:59:49,440
values from them every year. So that's

2752
01:59:49,440 --> 01:59:52,639
from June 2025. So we would have updated

2753
01:59:52,639 --> 01:59:54,239
>> so countywide average.

2754
01:59:54,239 --> 01:59:55,920
>> This is for ORUM. That's the average

2755
01:59:55,920 --> 01:59:58,239
ORUM um home value.

2756
01:59:58,239 --> 01:59:59,520
>> Yeah.

2757
01:59:59,520 --> 02:00:01,040
>> Tax at the 15.

2758
02:00:01,040 --> 02:00:03,679
>> That's their home value. So you should

2759
02:00:03,679 --> 02:00:05,599
keep that in mind. As we all know the

2760
02:00:05,599 --> 02:00:08,639
county value is significantly lower than

2761
02:00:08,639 --> 02:00:12,159
what your probably real value is, right?

2762
02:00:12,159 --> 02:00:15,199
county assessed values.

2763
02:00:15,199 --> 02:00:16,000
>> What's that?

2764
02:00:16,000 --> 02:00:16,480
>> Average.

2765
02:00:16,480 --> 02:00:18,400
>> Okay. Average.

2766
02:00:18,400 --> 02:00:21,440
>> So, with that setting in mind, as far as

2767
02:00:21,440 --> 02:00:23,199
the rates go,

2768
02:00:23,199 --> 02:00:25,520
>> so here's a breakdown just of revenue

2769
02:00:25,520 --> 02:00:28,800
comparative for each of our major other

2770
02:00:28,800 --> 02:00:32,560
uh funds that we have um for both what

2771
02:00:32,560 --> 02:00:35,679
we put for our 26 budget as compared to

2772
02:00:35,679 --> 02:00:38,800
what our proposed 27 budget um looks

2773
02:00:38,800 --> 02:00:41,679
like currently. Uh these are subject to

2774
02:00:41,679 --> 02:00:43,280
change. I will tell you that. But this

2775
02:00:43,280 --> 02:00:47,119
is where they're at currently. Um we as

2776
02:00:47,119 --> 02:00:50,719
you saw with uh various care taxs, I'm

2777
02:00:50,719 --> 02:00:52,480
slightly being even slightly more

2778
02:00:52,480 --> 02:00:55,280
aggressive um in relation to how much uh

2779
02:00:55,280 --> 02:00:57,679
we get and and I should say that 4.8

2780
02:00:57,679 --> 02:00:59,840
that's a little misleading because the

2781
02:00:59,840 --> 02:01:02,800
3.2 is going to be low.

2782
02:01:02,800 --> 02:01:06,480
>> So same concept. I'm taking that 3.2 and

2783
02:01:06,480 --> 02:01:08,480
I'm saying well it's really not going to

2784
02:01:08,480 --> 02:01:11,760
end up at 3.2. two, it's going to be 3.3

2785
02:01:11,760 --> 02:01:14,159
or 3.25.

2786
02:01:14,159 --> 02:01:17,520
So the 4.8 is slightly misleading in

2787
02:01:17,520 --> 02:01:19,199
that regard because we're comparing

2788
02:01:19,199 --> 02:01:21,119
budget to budget and not what my

2789
02:01:21,119 --> 02:01:24,560
estimated actual is going to be.

2790
02:01:24,560 --> 02:01:26,320
Um

2791
02:01:26,320 --> 02:01:29,599
so you can see most of those have um

2792
02:01:29,599 --> 02:01:31,920
relatively healthy increases and then

2793
02:01:31,920 --> 02:01:33,280
we'll touch on each one of these as we

2794
02:01:33,280 --> 02:01:35,119
go. here. Well, we don't What's the

2795
02:01:35,119 --> 02:01:38,080
yellow point? Pull water. We have a

2796
02:01:38,080 --> 02:01:39,920
proposed You can see the tier rates and

2797
02:01:39,920 --> 02:01:42,000
the associated percentages related to

2798
02:01:42,000 --> 02:01:44,159
each of those tiers and the increases.

2799
02:01:44,159 --> 02:01:46,719
Um the bigger bigger change is down in

2800
02:01:46,719 --> 02:01:48,560
the bottom section under the proposed

2801
02:01:48,560 --> 02:01:51,760
base rate changes. Um as those are

2802
02:01:51,760 --> 02:01:55,440
proposed to be 5 a.5%.

2803
02:01:55,440 --> 02:01:58,000
Um you if you touch back there, you can

2804
02:01:58,000 --> 02:02:01,119
see that total revenue-wise has about a

2805
02:02:01,119 --> 02:02:04,560
5.8% an 8% total increase when uh

2806
02:02:04,560 --> 02:02:09,030
compared to the prior year budget.

2807
02:02:09,040 --> 02:02:12,560
Um also within that water fund, we have

2808
02:02:12,560 --> 02:02:15,679
last year we had a new water source fee

2809
02:02:15,679 --> 02:02:18,880
related to Jordan and Deer Creek. And

2810
02:02:18,880 --> 02:02:21,040
that fee would then be also raised from

2811
02:02:21,040 --> 02:02:25,280
377 to 406. And this year we have a a

2812
02:02:25,280 --> 02:02:28,880
new regulatory fee that we're that we're

2813
02:02:28,880 --> 02:02:32,320
being required to and we are recovering.

2814
02:02:32,320 --> 02:02:34,719
Um and that's at 802 per thousand

2815
02:02:34,719 --> 02:02:36,159
gallons. And you can see the proposed

2816
02:02:36,159 --> 02:02:37,760
revenue that would be associated with

2817
02:02:37,760 --> 02:02:42,470
that regulatory fee

2818
02:02:42,480 --> 02:02:45,440
for sewer. The water reclamation fund.

2819
02:02:45,440 --> 02:02:47,679
uh the current proposal for the base

2820
02:02:47,679 --> 02:02:50,719
rate see while still while a healthy

2821
02:02:50,719 --> 02:02:52,880
increase certainly not to the same level

2822
02:02:52,880 --> 02:02:55,840
as the prior two years um trying to

2823
02:02:55,840 --> 02:02:57,840
again follow along with our current

2824
02:02:57,840 --> 02:02:59,840
master plan

2825
02:02:59,840 --> 02:03:03,360
um and then a volume charge change um

2826
02:03:03,360 --> 02:03:05,199
also I believe associated with that

2827
02:03:05,199 --> 02:03:09,350
master plan

2828
02:03:09,360 --> 02:03:12,080
the master plan includes

2829
02:03:12,080 --> 02:03:15,199
phases of debt to then do projects

2830
02:03:15,199 --> 02:03:18,159
associated with the master plan. So, it

2831
02:03:18,159 --> 02:03:21,280
is it helps us qualify for the debt

2832
02:03:21,280 --> 02:03:23,920
needed to make the improvements

2833
02:03:23,920 --> 02:03:26,320
uh primarily at our wastewater treatment

2834
02:03:26,320 --> 02:03:27,199
plan.

2835
02:03:27,199 --> 02:03:29,760
>> That was $260 million that was adopted

2836
02:03:29,760 --> 02:03:32,080
by the council a couple of years ago in

2837
02:03:32,080 --> 02:03:35,040
2023. So, everything's going to increase

2838
02:03:35,040 --> 02:03:37,599
as you all know. Um so, we are just

2839
02:03:37,599 --> 02:03:39,040
going to be anticipating those

2840
02:03:39,040 --> 02:03:40,880
increases, but we're funding it right

2841
02:03:40,880 --> 02:03:42,080
now. We've coordinated with Lewis

2842
02:03:42,080 --> 02:03:43,679
Roberts and Birmingham, Fred Philpot

2843
02:03:43,679 --> 02:03:46,400
directly to incorporate uh the debt

2844
02:03:46,400 --> 02:03:48,320
portion of that payment for that. That's

2845
02:03:48,320 --> 02:03:50,560
why these increases are in place to pay

2846
02:03:50,560 --> 02:03:53,199
for the debt. We anticip anticipate

2847
02:03:53,199 --> 02:03:55,840
bonding probably the end of this year

2848
02:03:55,840 --> 02:03:59,760
for about $65 million for the water

2849
02:03:59,760 --> 02:04:03,589
reclamation facility

2850
02:04:03,599 --> 02:04:06,159
storm water. Uh you can see the in

2851
02:04:06,159 --> 02:04:07,920
proposed increase there. You can see

2852
02:04:07,920 --> 02:04:09,280
that change is pretty big. But you'll

2853
02:04:09,280 --> 02:04:11,599
recall hopefully you recall we are in

2854
02:04:11,599 --> 02:04:13,599
the midst of trying to deal with

2855
02:04:13,599 --> 02:04:15,760
abandonment of the certain of existing

2856
02:04:15,760 --> 02:04:19,040
canals. Um trying to get this fund to a

2857
02:04:19,040 --> 02:04:22,159
point where we can uh deal with those uh

2858
02:04:22,159 --> 02:04:24,800
conditions as well.

2859
02:04:24,800 --> 02:04:29,040
solid waste. Uh we are basically had

2860
02:04:29,040 --> 02:04:30,800
went through a lot of negotiations with

2861
02:04:30,800 --> 02:04:34,560
waste management and we increase here is

2862
02:04:34,560 --> 02:04:36,400
basically in response to what we've been

2863
02:04:36,400 --> 02:04:38,320
able to negotiate uh with waste

2864
02:04:38,320 --> 02:04:40,719
management and recovering those

2865
02:04:40,719 --> 02:04:43,119
additional costs that that we worked out

2866
02:04:43,119 --> 02:04:45,599
with them.

2867
02:04:45,599 --> 02:04:49,360
street lighting fund. Again, another um

2868
02:04:49,360 --> 02:04:51,360
increase in relation to the street

2869
02:04:51,360 --> 02:04:53,920
lighting uh system and the maintenance

2870
02:04:53,920 --> 02:04:57,270
thereof.

2871
02:04:57,280 --> 02:05:00,800
Um on the recreation side, uh you'll

2872
02:05:00,800 --> 02:05:02,639
notice there were over the last three

2873
02:05:02,639 --> 02:05:04,960
fiscal years, there were zero changes to

2874
02:05:04,960 --> 02:05:08,480
any of the funds shown here. And uh to

2875
02:05:08,480 --> 02:05:10,480
be honest, it's just come time to be

2876
02:05:10,480 --> 02:05:14,080
able to to start uh

2877
02:05:14,080 --> 02:05:16,960
increasing those fees um as necessary.

2878
02:05:16,960 --> 02:05:18,880
You'll notice we still didn't uh

2879
02:05:18,880 --> 02:05:21,520
increase the general annual admissions.

2880
02:05:21,520 --> 02:05:23,679
So kind of potentially trying to get

2881
02:05:23,679 --> 02:05:25,760
those get get people paid by those

2882
02:05:25,760 --> 02:05:30,639
passes uh better deal for you.

2883
02:05:30,639 --> 02:05:34,080
And finally, in in our budget, and soon

2884
02:05:34,080 --> 02:05:36,480
as we're set, we will be delivering to

2885
02:05:36,480 --> 02:05:39,199
you the remaining the a fees and charges

2886
02:05:39,199 --> 02:05:40,960
schedule, which is one of the exhibits

2887
02:05:40,960 --> 02:05:43,360
within our tenative budget, but we will

2888
02:05:43,360 --> 02:05:45,199
hopefully be getting that to you prior

2889
02:05:45,199 --> 02:05:49,679
to um that date. Um I think we're we're

2890
02:05:49,679 --> 02:05:51,119
so we'll work on trying to be able to

2891
02:05:51,119 --> 02:05:52,800
get that to you as soon as possible that

2892
02:05:52,800 --> 02:05:56,719
has a listing of the 20 pages of fees

2893
02:05:56,719 --> 02:05:58,480
and charges that we have within our

2894
02:05:58,480 --> 02:06:00,880
budget. So,

2895
02:06:00,880 --> 02:06:03,280
are there any question? I know we kind

2896
02:06:03,280 --> 02:06:04,880
of rushed, kind of pushed through, but

2897
02:06:04,880 --> 02:06:06,719
that's to give you just kind of a heads

2898
02:06:06,719 --> 02:06:09,119
up as to what you know where we're

2899
02:06:09,119 --> 02:06:11,920
headed and what you're we're intending

2900
02:06:11,920 --> 02:06:14,800
to kind of show you uh come to tenative

2901
02:06:14,800 --> 02:06:15,679
budget.

2902
02:06:15,679 --> 02:06:17,360
>> Will we get these slides also?

2903
02:06:17,360 --> 02:06:20,560
>> Yes. And I Teresa has this this

2904
02:06:20,560 --> 02:06:25,990
presentation.

2905
02:06:26,000 --> 02:06:28,159
» Thanks for the detail you provided.

2906
02:06:28,159 --> 02:06:30,320
appreciate that.

2907
02:06:30,320 --> 02:06:32,159
Given that you presented right after

2908
02:06:32,159 --> 02:06:34,480
Phil [clears throat]

2909
02:06:34,480 --> 02:06:36,960
and Phil showed us some scary charts,

2910
02:06:36,960 --> 02:06:38,239
>> he did.

2911
02:06:38,239 --> 02:06:42,560
>> Uh to what extent does this proposal

2912
02:06:42,560 --> 02:06:45,440
help put us on a more sustainable fiscal

2913
02:06:45,440 --> 02:06:47,599
pathway? I can't quite tell from the

2914
02:06:47,599 --> 02:06:50,079
numbers you presented how much of Phil's

2915
02:06:50,079 --> 02:06:52,239
concerns this resolves and how much of

2916
02:06:52,239 --> 02:06:54,159
it remains unresolved.

2917
02:06:54,159 --> 02:06:57,599
uh it really probably does not resolve

2918
02:06:57,599 --> 02:07:03,040
very many if any ongoing issues. It is

2919
02:07:03,040 --> 02:07:07,760
um our best attempt and to be honest as

2920
02:07:07,760 --> 02:07:09,760
I mentioned with sales taxes being

2921
02:07:09,760 --> 02:07:12,719
significantly more aggressive with

2922
02:07:12,719 --> 02:07:14,800
various elements particularly within

2923
02:07:14,800 --> 02:07:17,599
that general fund elements to try to

2924
02:07:17,599 --> 02:07:19,920
make that come as balanced of a budget

2925
02:07:19,920 --> 02:07:23,119
as we possibly can. You'll recall that

2926
02:07:23,119 --> 02:07:26,079
pink line that he had. It would be

2927
02:07:26,079 --> 02:07:29,040
potentially extending that pink line

2928
02:07:29,040 --> 02:07:33,119
further out than he showed it. So that

2929
02:07:33,119 --> 02:07:36,560
would be what the this budget would in

2930
02:07:36,560 --> 02:07:37,840
reality end up doing.

2931
02:07:37,840 --> 02:07:39,679
>> Doesn't solve anything. It just uh

2932
02:07:39,679 --> 02:07:40,800
buffers a little bit.

2933
02:07:40,800 --> 02:07:41,679
>> Correct.

2934
02:07:41,679 --> 02:07:43,440
>> And I say more specifically for the

2935
02:07:43,440 --> 02:07:44,079
general fund though.

2936
02:07:44,079 --> 02:07:46,159
>> Yeah, that's enterprise funds. We are

2937
02:07:46,159 --> 02:07:47,679
progressively moving forward.

2938
02:07:47,679 --> 02:07:49,920
>> Yes. And I just want to clarify, our

2939
02:07:49,920 --> 02:07:54,000
budget has to be balanced every year,

2940
02:07:54,000 --> 02:07:55,280
>> which is why we're talking about

2941
02:07:55,280 --> 02:07:57,760
potentially modifying the property taxes

2942
02:07:57,760 --> 02:07:59,199
for this year. But you're saying that

2943
02:07:59,199 --> 02:08:00,639
whatever we modify this year, according

2944
02:08:00,639 --> 02:08:02,239
to your proposal, won't necessarily

2945
02:08:02,239 --> 02:08:04,480
solve our long-term issues.

2946
02:08:04,480 --> 02:08:11,830
>> Correct.

2947
02:08:11,840 --> 02:08:15,440
» And Jennica's up next. Other questions?

2948
02:08:15,440 --> 02:08:19,589
>> Chris or Jennica?

2949
02:08:19,599 --> 02:08:27,589
might as well

2950
02:08:27,599 --> 02:08:30,639
is being up there. I also just want to

2951
02:08:30,639 --> 02:08:34,400
say I really appreciate the council's

2952
02:08:34,400 --> 02:08:37,599
willingness and encouragement to engage

2953
02:08:37,599 --> 02:08:40,639
in that long-term general fund

2954
02:08:40,639 --> 02:08:43,040
sustainment

2955
02:08:43,040 --> 02:08:48,159
shows that you do care about um state of

2956
02:08:48,159 --> 02:08:51,199
the city's finances not just in the

2957
02:08:51,199 --> 02:08:54,719
short term but over the long term. Um,

2958
02:08:54,719 --> 02:08:58,239
and like with everything, I think, you

2959
02:08:58,239 --> 02:09:00,719
know, it's another tool we have to use

2960
02:09:00,719 --> 02:09:02,960
to make sure that we're still leading

2961
02:09:02,960 --> 02:09:06,320
with being efficient and effective. Um,

2962
02:09:06,320 --> 02:09:09,679
and and also going after all different

2963
02:09:09,679 --> 02:09:13,199
kinds of revenues. So, we'll we'll still

2964
02:09:13,199 --> 02:09:14,880
do the same things that we've done in

2965
02:09:14,880 --> 02:09:17,840
the past, too, to to cover the gap in

2966
02:09:17,840 --> 02:09:20,639
terms of going after grants and making

2967
02:09:20,639 --> 02:09:23,760
sure that we're uh provide services to

2968
02:09:23,760 --> 02:09:27,840
our neighboring cities that residents on

2969
02:09:27,840 --> 02:09:31,280
subsidizing those that service delivery.

2970
02:09:31,280 --> 02:09:34,960
Um, so anyway, just

2971
02:09:34,960 --> 02:09:38,639
want to make want to make sure that

2972
02:09:38,639 --> 02:09:41,199
know that we as staff appreciate your

2973
02:09:41,199 --> 02:09:44,639
willingness to to look at difficult

2974
02:09:44,639 --> 02:09:48,719
things and and uh I appreciate

2975
02:09:48,719 --> 02:09:56,069
the encouragement to do. You

2976
02:09:56,079 --> 02:09:57,840
» want to talk about getting some tough

2977
02:09:57,840 --> 02:10:01,440
toughness? It's not tough. There's there

2978
02:10:01,440 --> 02:10:03,520
were concerns when this when the when

2979
02:10:03,520 --> 02:10:06,560
Provo City adopted the TU fee

2980
02:10:06,560 --> 02:10:09,599
>> back in 2013 and they they thought about

2981
02:10:09,599 --> 02:10:12,320
changing it to UTF. That'd be utility

2982
02:10:12,320 --> 02:10:14,159
transportation fee because they thought

2983
02:10:14,159 --> 02:10:16,719
tough sounded maybe aggressive or

2984
02:10:16,719 --> 02:10:18,000
something.

2985
02:10:18,000 --> 02:10:19,679
>> In any case,

2986
02:10:19,679 --> 02:10:20,960
>> here's what it is.

2987
02:10:20,960 --> 02:10:23,760
>> So, the transportation utility fee, I'm

2988
02:10:23,760 --> 02:10:24,800
going to give you some historical

2989
02:10:24,800 --> 02:10:26,159
background a little bit. How much time

2990
02:10:26,159 --> 02:10:28,239
do I have? Is it about 10 minutes? You

2991
02:10:28,239 --> 02:10:32,480
think? You have a half hour

2992
02:10:32,480 --> 02:10:37,030
you do

2993
02:10:37,040 --> 02:10:38,960
like 10 minutes you said right?

2994
02:10:38,960 --> 02:10:41,040
>> You all's got to be done at 5.

2995
02:10:41,040 --> 02:10:42,800
>> You want Carrie.

2996
02:10:42,800 --> 02:10:44,400
>> We we only need a few minutes but we

2997
02:10:44,400 --> 02:10:46,719
still have the care tax to talk from 5

2998
02:10:46,719 --> 02:10:48,079
to 5:30.

2999
02:10:48,079 --> 02:10:49,520
>> I think you stop at 5

3000
02:10:49,520 --> 02:10:52,000
>> to 10 minutes.

3001
02:10:52,000 --> 02:10:55,679
>> I did but I got it fixed or changed. So

3002
02:10:55,679 --> 02:10:59,040
>> stop at 5:30. 5:30.

3003
02:10:59,040 --> 02:11:01,280
>> Yeah. So, this this item agenda item has

3004
02:11:01,280 --> 02:11:02,320
till five.

3005
02:11:02,320 --> 02:11:04,320
>> Okay. Well, I'm excited to present to

3006
02:11:04,320 --> 02:11:06,320
you on the tough. So, transportation

3007
02:11:06,320 --> 02:11:08,239
utility fee. Basically, this is a

3008
02:11:08,239 --> 02:11:10,480
funding mechanism that creates so

3009
02:11:10,480 --> 02:11:13,199
long-term sustainability. We're talking

3010
02:11:13,199 --> 02:11:14,960
a lot about sustainability for general

3011
02:11:14,960 --> 02:11:18,320
fund. Historically, uh the streets have

3012
02:11:18,320 --> 02:11:20,000
been maintained through excise tax

3013
02:11:20,000 --> 02:11:21,920
revenues and sales tax revenues. most

3014
02:11:21,920 --> 02:11:25,440
recently Utah Utah County uh sales tax

3015
02:11:25,440 --> 02:11:28,800
transportation portion of that. Um so

3016
02:11:28,800 --> 02:11:31,599
it's it's creating another lever to fall

3017
02:11:31,599 --> 02:11:33,599
if if need be and we feel like we do

3018
02:11:33,599 --> 02:11:38,960
have a need we have a gap funding gap to provide quality roads and surfaces

3019
02:11:38,960 --> 02:11:41,520
for drivers in

3020
02:11:41,520 --> 02:11:43,440
the revenue generated proportionately

3021
02:11:43,440 --> 02:11:45,760
amongst all users of the road. That was

3022
02:11:45,760 --> 02:11:48,480
one of the concerns that was expressed

3023
02:11:48,480 --> 02:11:51,599
uh years ago when

3024
02:11:51,599 --> 02:11:55,119
Libertas um objected to Pleasant Groves

3025
02:11:55,119 --> 02:11:57,679
utility fee. So some history here.

3026
02:11:57,679 --> 02:11:59,360
Probably implemented the the first uh

3027
02:11:59,360 --> 02:12:02,719
TUF in 2013 in the state of Utah. Other

3028
02:12:02,719 --> 02:12:05,040
cities followed a few followed over time

3029
02:12:05,040 --> 02:12:08,719
including Island um and others I'll show

3030
02:12:08,719 --> 02:12:11,040
you on here. Island now Vineyard most

3031
02:12:11,040 --> 02:12:12,880
recently we're proposing it now this

3032
02:12:12,880 --> 02:12:15,760
year. Pleasant Grove American Forks

3033
02:12:15,760 --> 02:12:17,679
considering it this year and so forth.

3034
02:12:17,679 --> 02:12:20,880
In 2020, uh there was an objection to

3035
02:12:20,880 --> 02:12:23,280
Pleasant Grove's tough analysis and fee

3036
02:12:23,280 --> 02:12:26,079
that was implemented and that was

3037
02:12:26,079 --> 02:12:28,079
objected by Libertas. They suspended

3038
02:12:28,079 --> 02:12:32,159
their uh um applying their fees in 2020.

3039
02:12:32,159 --> 02:12:34,639
It went to the Utah Supreme Court and

3040
02:12:34,639 --> 02:12:36,400
then Utah Supreme Court ruled in favor

3041
02:12:36,400 --> 02:12:39,280
of Pleasant Grove in 203 and deemed that

3042
02:12:39,280 --> 02:12:42,639
this is a legal fee to charge. Libertas'

3043
02:12:42,639 --> 02:12:45,199
perspective was that this is a an

3044
02:12:45,199 --> 02:12:48,960
unfounded uh tax of sorts. So and indeed

3045
02:12:48,960 --> 02:12:50,800
they they they

3046
02:12:50,800 --> 02:12:52,159
determined that there was a nexus

3047
02:12:52,159 --> 02:12:53,679
between the fee and the services

3048
02:12:53,679 --> 02:12:56,960
provided. And so that's uh that's since

3049
02:12:56,960 --> 02:13:00,960
been covered by the Utah Supreme Court.

3050
02:13:00,960 --> 02:13:02,719
Since then, the Utah legislature has

3051
02:13:02,719 --> 02:13:05,199
sought to formalize an acceptable plan

3052
02:13:05,199 --> 02:13:07,040
for transportation utility fee

3053
02:13:07,040 --> 02:13:11,840
guidelines. Um in 2024, 25 and 26, they

3054
02:13:11,840 --> 02:13:14,800
went before the legislature. 24 and 25,

3055
02:13:14,800 --> 02:13:17,760
House Bill 367, and then in 25, House

3056
02:13:17,760 --> 02:13:22,079
Bill 34, Senate Bill 310, they all got

3057
02:13:22,079 --> 02:13:24,159
um tabled and they didn't uh get

3058
02:13:24,159 --> 02:13:26,880
accepted in large part because of some

3059
02:13:26,880 --> 02:13:31,360
opposition by the church to uh oppose

3060
02:13:31,360 --> 02:13:34,560
that because primarily for BYU impacts

3061
02:13:34,560 --> 02:13:36,320
and so forth. The impact to them was

3062
02:13:36,320 --> 02:13:38,159
going to be a very large impact like

3063
02:13:38,159 --> 02:13:41,280
this was a tax on them. Um, however,

3064
02:13:41,280 --> 02:13:44,000
there need to be a fee. In 2026, uh, the

3065
02:13:44,000 --> 02:13:46,239
legislation went through and it was very

3066
02:13:46,239 --> 02:13:48,960
successful. And this gives you kind of

3067
02:13:48,960 --> 02:13:50,960
an update of what that is. So, House

3068
02:13:50,960 --> 02:13:53,679
Bill 425, the tough authorization

3069
02:13:53,679 --> 02:13:56,560
authorized a municipality or county to

3070
02:13:56,560 --> 02:13:59,440
impose a transportation utility fee.

3071
02:13:59,440 --> 02:14:03,679
Similar framework uh to 2024 and 2025.

3072
02:14:03,679 --> 02:14:05,920
Um, and some of those concerns back then

3073
02:14:05,920 --> 02:14:07,840
that I I shared with you were regarding

3074
02:14:07,840 --> 02:14:10,400
taxing, not taxing, but applying a fee

3075
02:14:10,400 --> 02:14:16,079
on um, ecclesia or church properties.

3076
02:14:16,079 --> 02:14:18,800
Um, the bill defines a tough as a fee

3077
02:14:18,800 --> 02:14:20,880
imposed to generate revenue to pay for

3078
02:14:20,880 --> 02:14:23,280
costs associated with developing,

3079
02:14:23,280 --> 02:14:25,199
constructing, maintaining, operating,

3080
02:14:25,199 --> 02:14:27,199
repairing, upgrading, or replacing a

3081
02:14:27,199 --> 02:14:29,599
transportation facility.

3082
02:14:29,599 --> 02:14:32,159
It's extremely broad.

3083
02:14:32,159 --> 02:14:36,000
what what Provo uh adopted in 2013 was

3084
02:14:36,000 --> 02:14:39,360
just to address the needs to uh maintain

3085
02:14:39,360 --> 02:14:41,599
what is existing, not to actually build

3086
02:14:41,599 --> 02:14:44,400
something new. And so this is a a

3087
02:14:44,400 --> 02:14:47,599
broadening of what we we're expecting it

3088
02:14:47,599 --> 02:14:51,440
to be. Um there's no language explicitly

3089
02:14:51,440 --> 02:14:53,840
related to exemption of religious or tax

3090
02:14:53,840 --> 02:14:56,320
exempt facilities. However, how they got

3091
02:14:56,320 --> 02:14:59,440
around that they said that um you would

3092
02:14:59,440 --> 02:15:03,599
exclude uh the the least busy

3093
02:15:03,599 --> 02:15:06,800
transportation day of the week. Not for

3094
02:15:06,800 --> 02:15:10,000
a facility, but citywide. So citywide,

3095
02:15:10,000 --> 02:15:12,000
what would you say is the least amount

3096
02:15:12,000 --> 02:15:14,000
of traffic that you would experience?

3097
02:15:14,000 --> 02:15:14,719
>> Sunday. Sunday.

3098
02:15:14,719 --> 02:15:16,480
>> On a Sunday. Therefore, [clears throat]

3099
02:15:16,480 --> 02:15:19,199
any data collected regarding a Sunday is

3100
02:15:19,199 --> 02:15:21,840
eliminated from the study.

3101
02:15:21,840 --> 02:15:24,880
Church like that. So that's how it went

3102
02:15:24,880 --> 02:15:26,400
forth.

3103
02:15:26,400 --> 02:15:27,199
That's how

3104
02:15:27,199 --> 02:15:28,560
>> Chris, if you could just go back real

3105
02:15:28,560 --> 02:15:28,960
quick.

3106
02:15:28,960 --> 02:15:29,760
>> Sure.

3107
02:15:29,760 --> 02:15:31,920
>> In this in my state of the city address,

3108
02:15:31,920 --> 02:15:33,440
you heard me talk about wrestling and

3109
02:15:33,440 --> 02:15:36,480
wrestling even friends and neighbors. I

3110
02:15:36,480 --> 02:15:39,440
may or may not have had to wrestle with

3111
02:15:39,440 --> 02:15:41,840
Senator Brady Grammar over

3112
02:15:41,840 --> 02:15:44,800
transportation utility fund. [laughter]

3113
02:15:44,800 --> 02:15:48,079
>> I'm sure you ribs

3114
02:15:48,079 --> 02:15:49,599
broken.

3115
02:15:49,599 --> 02:15:52,560
No ribs were broken, but some of us were

3116
02:15:52,560 --> 02:15:54,880
humbled.

3117
02:15:54,880 --> 02:15:56,800
>> Some of us,

3118
02:15:56,800 --> 02:16:00,079
>> one of them at least.

3119
02:16:00,079 --> 02:16:01,840
>> Um, the key highlights from this bill,

3120
02:16:01,840 --> 02:16:02,960
I'm going to go ahead and read these

3121
02:16:02,960 --> 02:16:04,880
through. Um, it requires a reasonable

3122
02:16:04,880 --> 02:16:06,560
relationship or an access between the

3123
02:16:06,560 --> 02:16:10,079
fee and the service being provided. So,

3124
02:16:10,079 --> 02:16:11,760
the benefit are created by those who pay

3125
02:16:11,760 --> 02:16:14,560
the fee. Um, it requires a study to show

3126
02:16:14,560 --> 02:16:16,159
that there is a maintenance need and a

3127
02:16:16,159 --> 02:16:18,800
funding gap. Currently, in developing

3128
02:16:18,800 --> 02:16:20,560
the fee, it needs to use methodologies

3129
02:16:20,560 --> 02:16:22,560
based on trip generations, vehicle

3130
02:16:22,560 --> 02:16:24,639
types, traffic counts, and it could

3131
02:16:24,639 --> 02:16:26,000
exclude the day of the week which has

3132
02:16:26,000 --> 02:16:28,880
the lowest traffic count is what I just

3133
02:16:28,880 --> 02:16:31,840
mentioned. It also imposes different

3134
02:16:31,840 --> 02:16:34,240
tough rates, shall impose different

3135
02:16:34,240 --> 02:16:35,599
tough rates for different

3136
02:16:35,599 --> 02:16:38,000
classifications of users, including

3137
02:16:38,000 --> 02:16:40,559
commercial and residential. Right. Um,

3138
02:16:40,559 --> 02:16:42,479
it requires a public hearing before

3139
02:16:42,479 --> 02:16:45,599
imposing the TU. City shall establish a

3140
02:16:45,599 --> 02:16:48,880
transportation fund for all TUF revenue.

3141
02:16:48,880 --> 02:16:50,719
Tough may be imposed only by ordinance

3142
02:16:50,719 --> 02:16:54,080
and it must have an appeals process. Um,

3143
02:16:54,080 --> 02:16:55,920
so the city shall conduct an annual

3144
02:16:55,920 --> 02:16:58,800
review and then TUS expire automatically

3145
02:16:58,800 --> 02:17:00,880
after 10 years. That could be updated

3146
02:17:00,880 --> 02:17:02,479
every year if you choose to. It's just

3147
02:17:02,479 --> 02:17:04,319
uh you have to spend some extra money to

3148
02:17:04,319 --> 02:17:06,240
do something like that. So you might

3149
02:17:06,240 --> 02:17:09,280
ask, well, where are we in this process?

3150
02:17:09,280 --> 02:17:10,800
Everything in yellow shows what we've

3151
02:17:10,800 --> 02:17:12,639
done to date. Everything in green is

3152
02:17:12,639 --> 02:17:14,639
showing um things that are coming

3153
02:17:14,639 --> 02:17:17,599
forward, coming soon based on your input

3154
02:17:17,599 --> 02:17:20,399
and feedback. So there's an industry

3155
02:17:20,399 --> 02:17:22,000
standard for trip generation rates that

3156
02:17:22,000 --> 02:17:25,840
are applied to um to all all of the

3157
02:17:25,840 --> 02:17:27,200
trips that are generating throughout the

3158
02:17:27,200 --> 02:17:29,599
city. That's using what's a document

3159
02:17:29,599 --> 02:17:31,280
that's called the IT trip generation

3160
02:17:31,280 --> 02:17:33,120
manual. Institute of Transportation

3161
02:17:33,120 --> 02:17:34,960
Engineers has developed a trip

3162
02:17:34,960 --> 02:17:36,639
generation

3163
02:17:36,639 --> 02:17:40,639
nationwide uh um um product that's out

3164
02:17:40,639 --> 02:17:44,639
there that helps us as as communities as

3165
02:17:44,639 --> 02:17:46,399
traffic engineers, as civil engineers

3166
02:17:46,399 --> 02:17:48,800
and so forth in determining how much

3167
02:17:48,800 --> 02:17:50,719
traffic is actually being generated

3168
02:17:50,719 --> 02:17:53,120
typically on average over the course of

3169
02:17:53,120 --> 02:17:55,200
a day and then you can apply that

3170
02:17:55,200 --> 02:17:57,439
throughout the course of the year. We

3171
02:17:57,439 --> 02:17:59,599
needed to also uh perform a study and

3172
02:17:59,599 --> 02:18:00,880
show that there's a maintenance need and

3173
02:18:00,880 --> 02:18:03,359
a funding gap. We have and I'll get into

3174
02:18:03,359 --> 02:18:05,760
details on this uh in just a m moment,

3175
02:18:05,760 --> 02:18:08,719
but we have a funding gap we feel as as

3176
02:18:08,719 --> 02:18:12,960
about $4 million for our streets. Um we

3177
02:18:12,960 --> 02:18:15,760
have the excise tax funds that are

3178
02:18:15,760 --> 02:18:19,359
coming in through gas tax, gas sales,

3179
02:18:19,359 --> 02:18:21,359
and then we also have a sales tax for

3180
02:18:21,359 --> 02:18:24,000
Utah County. Those both generate around

3181
02:18:24,000 --> 02:18:27,200
$4 million each. And so we feel like we

3182
02:18:27,200 --> 02:18:29,599
need to be putting or investing about 12

3183
02:18:29,599 --> 02:18:33,599
million in today to be able to uh

3184
02:18:33,599 --> 02:18:36,880
maintain our roads in a in an acceptable

3185
02:18:36,880 --> 02:18:40,479
um surface manner. So

3186
02:18:40,479 --> 02:18:42,319
again I'll get into the details on that.

3187
02:18:42,319 --> 02:18:44,399
You I'm sure you'll question all that.

3188
02:18:44,399 --> 02:18:46,960
>> Is this just for local roads not do

3189
02:18:46,960 --> 02:18:48,160
owned roads? We're talking like state

3190
02:18:48,160 --> 02:18:48,479
street right?

3191
02:18:48,479 --> 02:18:51,120
>> No no not state just you uh warm city

3192
02:18:51,120 --> 02:18:53,519
roads. So Geneva Road, State Street,

3193
02:18:53,519 --> 02:18:56,559
University Parkway and 8th North and

3194
02:18:56,559 --> 02:18:59,040
west of State Street on 16th North are

3195
02:18:59,040 --> 02:19:01,920
all owned, operated, maintained,

3196
02:19:01,920 --> 02:19:04,559
referred, replaced by UD do.

3197
02:19:04,559 --> 02:19:05,840
>> Thank you.

3198
02:19:05,840 --> 02:19:09,040
>> Um, in developing these methodologies,

3199
02:19:09,040 --> 02:19:11,200
we we we already commented on that. So

3200
02:19:11,200 --> 02:19:14,880
we use weekday it trip generation rates.

3201
02:19:14,880 --> 02:19:17,840
Um, and we we hired a metrics. They were

3202
02:19:17,840 --> 02:19:19,439
the first firm to perform a

3203
02:19:19,439 --> 02:19:22,319
transportation utility fee study back in

3204
02:19:22,319 --> 02:19:23,920
2013.

3205
02:19:23,920 --> 02:19:26,399
And so, uh, what they've adopted in

3206
02:19:26,399 --> 02:19:28,399
Provo City has been kind of the model, I

3207
02:19:28,399 --> 02:19:31,280
say, for the entire state. And the

3208
02:19:31,280 --> 02:19:33,519
legislators that were involved in in

3209
02:19:33,519 --> 02:19:35,599
creating this legislation,

3210
02:19:35,599 --> 02:19:37,599
uh, specifically have referred to that,

3211
02:19:37,599 --> 02:19:39,200
referenced that because they feel it is

3212
02:19:39,200 --> 02:19:42,880
very solid. Um, so imposing tough rates,

3213
02:19:42,880 --> 02:19:44,559
we have two residential rates that we'll

3214
02:19:44,559 --> 02:19:46,160
be imposing. That's what we're

3215
02:19:46,160 --> 02:19:48,399
suggesting now. And four non-residential

3216
02:19:48,399 --> 02:19:50,479
rates. That's what Parametric has

3217
02:19:50,479 --> 02:19:52,880
recommended. Um, and then it says to

3218
02:19:52,880 --> 02:19:54,319
require a public hearing. That would be

3219
02:19:54,319 --> 02:19:56,720
coming soon. Pending your approval and

3220
02:19:56,720 --> 02:19:58,080
recommendation to move forward with

3221
02:19:58,080 --> 02:20:00,080
this. We need to create a transportation

3222
02:20:00,080 --> 02:20:01,680
fund. We haven't created that yet.

3223
02:20:01,680 --> 02:20:03,920
That'll come soon. Then we need to uh

3224
02:20:03,920 --> 02:20:05,359
bring forward an ordinance that will

3225
02:20:05,359 --> 02:20:07,920
adopt this. That's coming soon. If you

3226
02:20:07,920 --> 02:20:09,680
choose to move forward and then

3227
02:20:09,680 --> 02:20:11,359
conducting an annual review. So, at the

3228
02:20:11,359 --> 02:20:13,520
end of each year, we need to look at um

3229
02:20:13,520 --> 02:20:15,280
what were we able to do? we have to look

3230
02:20:15,280 --> 02:20:17,600
back a year in review and see were we

3231
02:20:17,600 --> 02:20:20,880
able to um have enough money to to meet

3232
02:20:20,880 --> 02:20:22,160
the needs of the study that we've

3233
02:20:22,160 --> 02:20:24,319
performed and that shows that and

3234
02:20:24,319 --> 02:20:26,720
identified the funding gaps.

3235
02:20:26,720 --> 02:20:28,319
Um we have a document called the state

3236
02:20:28,319 --> 02:20:30,399
of the streets document. It's it's uh

3237
02:20:30,399 --> 02:20:32,479
prepared and modified and updated by our

3238
02:20:32,479 --> 02:20:34,960
streets division um in part in

3239
02:20:34,960 --> 02:20:36,640
conjunction with the engineering uh

3240
02:20:36,640 --> 02:20:39,040
division. Uh the last time we've updated

3241
02:20:39,040 --> 02:20:41,200
this is 2021 and we do this about every

3242
02:20:41,200 --> 02:20:43,120
5 years. So we're we're due for another

3243
02:20:43,120 --> 02:20:45,120
one right now. This street is an ideal

3244
02:20:45,120 --> 02:20:46,319
looking street. It looks pretty brand

3245
02:20:46,319 --> 02:20:48,319
new. It's black. I mean, cracking and so

3246
02:20:48,319 --> 02:20:52,160
forth. It has vibrant uh disparity color

3247
02:20:52,160 --> 02:20:53,600
for the lines and so forth. It looks

3248
02:20:53,600 --> 02:20:55,920
really good. We want to try to maintain

3249
02:20:55,920 --> 02:20:58,319
our streets to that level as best as we

3250
02:20:58,319 --> 02:21:02,160
can. What this graphic shows is if we uh

3251
02:21:02,160 --> 02:21:03,840
don't perform any maintenance on our

3252
02:21:03,840 --> 02:21:06,160
streets, how a local street would

3253
02:21:06,160 --> 02:21:08,080
decline. So what you see in red is a

3254
02:21:08,080 --> 02:21:10,800
local street in green is a collector

3255
02:21:10,800 --> 02:21:13,359
street. Purple here is an arterial

3256
02:21:13,359 --> 02:21:15,200
street. You might ask, well why would a

3257
02:21:15,200 --> 02:21:16,720
local street last longer? Well, you

3258
02:21:16,720 --> 02:21:19,920
don't have um you know WB63

3259
02:21:19,920 --> 02:21:24,399
uh trucks going down that street with heavy loads whereas you have a lot

3260
02:21:24,399 --> 02:21:26,960
of freight and other um goods and

3261
02:21:26,960 --> 02:21:28,640
products that are being transported on

3262
02:21:28,640 --> 02:21:31,439
our arterials. So um the actual amount

3263
02:21:31,439 --> 02:21:35,520
of damage uh that'll occur over the same

3264
02:21:35,520 --> 02:21:37,520
uh it's accelerated about six or seven

3265
02:21:37,520 --> 02:21:40,479
years here from from uh the local to the

3266
02:21:40,479 --> 02:21:42,640
arterial. So they get damaged a lot more

3267
02:21:42,640 --> 02:21:44,399
frequently require more repair and

3268
02:21:44,399 --> 02:21:47,680
replacement and and attention over time.

3269
02:21:47,680 --> 02:21:49,359
So this is what it looks like. Critical

3270
02:21:49,359 --> 02:21:51,520
zone one, we have what's called a

3271
02:21:51,520 --> 02:21:53,280
pavement condition index on the on the

3272
02:21:53,280 --> 02:21:55,920
left. Goes from 0 to 100. 100 means it's

3273
02:21:55,920 --> 02:21:58,720
brand new. It's freshly laid. Um and

3274
02:21:58,720 --> 02:22:00,080
then you come out over here in this line

3275
02:22:00,080 --> 02:22:02,479
for a critical uh right here. Then

3276
02:22:02,479 --> 02:22:04,880
critical zone one. You get to fair poor

3277
02:22:04,880 --> 02:22:07,120
and then failing in this zone right

3278
02:22:07,120 --> 02:22:10,640
here. Um we're looking at perhaps having

3279
02:22:10,640 --> 02:22:13,120
to do an overlay. And then down here

3280
02:22:13,120 --> 02:22:16,319
you've lost your road alto together. You have to do a reconstruct of that

3281
02:22:16,319 --> 02:22:19,680
road. So many you've probably seen a

3282
02:22:19,680 --> 02:22:21,359
road that looks like it's been cracked

3283
02:22:21,359 --> 02:22:23,680
severely that and you have you can

3284
02:22:23,680 --> 02:22:25,359
almost pick a piece of asphalt off the

3285
02:22:25,359 --> 02:22:27,920
road. That's called alligator

3286
02:22:27,920 --> 02:22:30,720
in a stat to that status. So right now

3287
02:22:30,720 --> 02:22:33,120
linen city is working on a road uh 20 or

3288
02:22:33,120 --> 02:22:34,720
2000 north that we have a shared

3289
02:22:34,720 --> 02:22:37,520
agreement on west of state to 1000 west

3290
02:22:37,520 --> 02:22:38,880
when they're traveling. You can go out

3291
02:22:38,880 --> 02:22:40,080
there and you can physically pick out

3292
02:22:40,080 --> 02:22:42,880
chunks of asphalt. The road has failed.

3293
02:22:42,880 --> 02:22:44,479
Can't overlay it. You can't put any more

3294
02:22:44,479 --> 02:22:45,840
lipstick on that. It's not going to make

3295
02:22:45,840 --> 02:22:47,840
it look nice. Might make it look a

3296
02:22:47,840 --> 02:22:49,439
little nice but not not very good. It's

3297
02:22:49,439 --> 02:22:52,240
not going to last. So what we need to do

3298
02:22:52,240 --> 02:22:54,800
is we need to aggressively look at

3299
02:22:54,800 --> 02:22:57,520
having a uh a pavement life cycle

3300
02:22:57,520 --> 02:22:59,600
maintenance plan. And so what we do is

3301
02:22:59,600 --> 02:23:02,160
we do crack sealing, we do slurry seals,

3302
02:23:02,160 --> 02:23:04,640
overlays, and so forth over an extended

3303
02:23:04,640 --> 02:23:07,040
period of time. Every about 7 years or

3304
02:23:07,040 --> 02:23:09,520
so when we do that, it rebounds a little

3305
02:23:09,520 --> 02:23:11,120
bit. We might do some surface treatment

3306
02:23:11,120 --> 02:23:13,040
on it. So we can extend the life out

3307
02:23:13,040 --> 02:23:15,760
farther. This is all referencing a local

3308
02:23:15,760 --> 02:23:19,120
street. This is failure if you don't do

3309
02:23:19,120 --> 02:23:21,280
uh do any of that. But purple represents

3310
02:23:21,280 --> 02:23:24,240
consistent for consistent regular life

3311
02:23:24,240 --> 02:23:26,880
cycle maintenance and in green it

3312
02:23:26,880 --> 02:23:28,479
represents something maybe less

3313
02:23:28,479 --> 02:23:31,120
consistent maybe a little more periodic.

3314
02:23:31,120 --> 02:23:32,640
So our local streets what we've

3315
02:23:32,640 --> 02:23:35,760
determined are most of the our local

3316
02:23:35,760 --> 02:23:38,720
streets are probably 25 to 30 years old

3317
02:23:38,720 --> 02:23:41,840
right now. We have tried to do what you

3318
02:23:41,840 --> 02:23:43,760
show in purple but some of the roads are

3319
02:23:43,760 --> 02:23:46,640
in green. So 25 years you're we're

3320
02:23:46,640 --> 02:23:48,319
starting to approach this area right

3321
02:23:48,319 --> 02:23:52,080
here. We want to keep it up in this zone

3322
02:23:52,080 --> 02:23:53,680
and prevent it from coming down here

3323
02:23:53,680 --> 02:23:55,920
because the the cost to repair or to

3324
02:23:55,920 --> 02:23:58,319
replace a road and reconstruct it is

3325
02:23:58,319 --> 02:24:00,479
five to six, seven, eight times as as

3326
02:24:00,479 --> 02:24:02,399
much as it would be to do your

3327
02:24:02,399 --> 02:24:03,840
preventative maintenance over that same

3328
02:24:03,840 --> 02:24:06,880
period of time. So like with most

3329
02:24:06,880 --> 02:24:08,720
things, you have to spend money perhaps

3330
02:24:08,720 --> 02:24:10,560
or to make money or you have to spend

3331
02:24:10,560 --> 02:24:13,439
money to delay the cost into the future

3332
02:24:13,439 --> 02:24:15,040
as well. And that's what we're

3333
02:24:15,040 --> 02:24:17,040
proposing. In our analysis, we're

3334
02:24:17,040 --> 02:24:19,520
looking at about a $4 million gap. Our

3335
02:24:19,520 --> 02:24:22,399
roads right now are at about age 25 to

3336
02:24:22,399 --> 02:24:25,359
30 in that range. Once you get out from

3337
02:24:25,359 --> 02:24:28,960
25 to 30, we're looking at potentially

3338
02:24:28,960 --> 02:24:30,720
falling below that line. We don't want

3339
02:24:30,720 --> 02:24:32,319
to do that.

3340
02:24:32,319 --> 02:24:35,040
>> Chris, yeah. Would you argue that other

3341
02:24:35,040 --> 02:24:38,080
consideration might be

3342
02:24:38,080 --> 02:24:41,040
that that road being out of commission

3343
02:24:41,040 --> 02:24:47,520
that falls a year significantly longer than just having to

3344
02:24:47,520 --> 02:24:49,359
do that those maintenance elements to

3345
02:24:49,359 --> 02:24:53,600
it? So, so that inconvenience to the

3346
02:24:53,600 --> 02:24:56,160
>> Sure. Absolutely. Reconstructing, you're

3347
02:24:56,160 --> 02:24:57,120
going to take you're going to take the

3348
02:24:57,120 --> 02:24:58,960
road down for an more of an extended

3349
02:24:58,960 --> 02:25:01,040
period of time whereas regular

3350
02:25:01,040 --> 02:25:04,640
maintenance that occurs periodically.

3351
02:25:04,640 --> 02:25:06,640
>> Your's not going to be done. I'm sure

3352
02:25:06,640 --> 02:25:08,240
there's convenience factor in there as

3353
02:25:08,240 --> 02:25:08,640
well.

3354
02:25:08,640 --> 02:25:10,880
>> There's a social cost or a soft cost, a

3355
02:25:10,880 --> 02:25:12,000
quality of life cost,

3356
02:25:12,000 --> 02:25:14,720
>> quality of life cost, so forth.

3357
02:25:14,720 --> 02:25:19,040
Um, so we were asked by this legislation

3358
02:25:19,040 --> 02:25:20,800
to look at different land use

3359
02:25:20,800 --> 02:25:22,080
classifications. Well, you can just

3360
02:25:22,080 --> 02:25:23,520
break it out into two right away. You

3361
02:25:23,520 --> 02:25:25,280
can residential, you got your

3362
02:25:25,280 --> 02:25:26,800
non-residential.

3363
02:25:26,800 --> 02:25:29,840
And we've done an analysis in our city.

3364
02:25:29,840 --> 02:25:31,600
Um, all of our principles generate over

3365
02:25:31,600 --> 02:25:34,399
a million trips a day.

3366
02:25:34,399 --> 02:25:36,560
35% of those trips are associated with

3367
02:25:36,560 --> 02:25:39,439
residential and 65% are associated with

3368
02:25:39,439 --> 02:25:41,520
non-residential.

3369
02:25:41,520 --> 02:25:43,200
If you carve that out a little bit more

3370
02:25:43,200 --> 02:25:45,040
for residential

3371
02:25:45,040 --> 02:25:47,280
of the residential%

3372
02:25:47,280 --> 02:25:51,280
is single family 30 multi-standing

3373
02:25:51,280 --> 02:25:53,200
and as you carve out the non

3374
02:25:53,200 --> 02:25:54,720
non-residential

3375
02:25:54,720 --> 02:25:57,840
by ADT that means annual daily trips

3376
02:25:57,840 --> 02:25:59,760
average daily trips I I should say not

3377
02:25:59,760 --> 02:26:02,160
annual average daily trips you're

3378
02:26:02,160 --> 02:26:06,399
looking at 660,000 total but 74% of

3379
02:26:06,399 --> 02:26:09,120
those are produced by those um

3380
02:26:09,120 --> 02:26:11,120
businesses and so forth that have over

3381
02:26:11,120 --> 02:26:14,880
600 trips a day. Um, and then a much

3382
02:26:14,880 --> 02:26:16,640
smaller percentage by those that maybe

3383
02:26:16,640 --> 02:26:20,080
have 100 ADT or 200 ADT or three or 400

3384
02:26:20,080 --> 02:26:22,640
ADT. You might ask, well, what are those

3385
02:26:22,640 --> 02:26:24,640
facilities? What do they look like?

3386
02:26:24,640 --> 02:26:26,720
Those that are under 180 or small

3387
02:26:26,720 --> 02:26:28,560
office, maybe an insurance agency,

3388
02:26:28,560 --> 02:26:31,120
dental office, small re retail, hair

3389
02:26:31,120 --> 02:26:33,280
salon, and so forth. And then they

3390
02:26:33,280 --> 02:26:36,319
gradually escalate um based on this

3391
02:26:36,319 --> 02:26:38,560
criteria here for trips generated. So

3392
02:26:38,560 --> 02:26:40,160
churches might have something around 1

3393
02:26:40,160 --> 02:26:43,280
to 200, a tire store, a self-s served

3394
02:26:43,280 --> 02:26:45,120
car wash.

3395
02:26:45,120 --> 02:26:46,880
2 to 600, you're looking at a small

3396
02:26:46,880 --> 02:26:49,439
restaurant, maybe assisted living, a

3397
02:26:49,439 --> 02:26:52,399
drive-through car wash, and then over

3398
02:26:52,399 --> 02:26:54,000
600, you're looking at hospitals,

3399
02:26:54,000 --> 02:26:56,080
schools, big box retail, grocery stores,

3400
02:26:56,080 --> 02:26:58,000
gas stations, convenience, convenience

3401
02:26:58,000 --> 02:27:00,240
stores, um large restaurants, and so

3402
02:27:00,240 --> 02:27:04,640
forth. Again, looking back on this, 74%

3403
02:27:04,640 --> 02:27:07,120
falls into this category right here.

3404
02:27:07,120 --> 02:27:08,720
That's where the majority of our damage

3405
02:27:08,720 --> 02:27:11,040
on our streets is coming from from that

3406
02:27:11,040 --> 02:27:19,439
right there. The the axle loads um are they escalate as Tyler knows we've

3407
02:27:19,439 --> 02:27:21,920
done this recently. Um when you have a

3408
02:27:21,920 --> 02:27:24,720
semi, it's one vehicle, but it might

3409
02:27:24,720 --> 02:27:28,000
have the same impact as maybe 500 cars

3410
02:27:28,000 --> 02:27:29,920
would. So it's an equivalent load of

3411
02:27:29,920 --> 02:27:35,520
about 500 cars traveling over that same stretch.

3412
02:27:35,520 --> 02:27:37,359
So what is fair? What's the right thing

3413
02:27:37,359 --> 02:27:40,240
to do? And we break these out. This is a

3414
02:27:40,240 --> 02:27:42,160
total summary of everything al together

3415
02:27:42,160 --> 02:27:44,479
for residential non-residential trips

3416
02:27:44,479 --> 02:27:46,800
generated. They add up to just over 1

3417
02:27:46,800 --> 02:27:48,479
million.

3418
02:27:48,479 --> 02:27:51,120
What we're proposing or suggesting is

3419
02:27:51,120 --> 02:27:53,280
this graphic right here is for $1

3420
02:27:53,280 --> 02:27:56,479
million of revenue. The impact for a

3421
02:27:56,479 --> 02:27:58,800
resident would be about 90 cents a

3422
02:27:58,800 --> 02:28:02,399
month. 31 cents on average for

3423
02:28:02,399 --> 02:28:03,920
non-residential.

3424
02:28:03,920 --> 02:28:06,240
As you break those down out further,

3425
02:28:06,240 --> 02:28:07,760
look at a single family versus

3426
02:28:07,760 --> 02:28:10,319
multifamily, you're looking at a$18 to

3427
02:28:10,319 --> 02:28:14,240
68 for a multifamily unit. And then

3428
02:28:14,240 --> 02:28:17,200
those down here for non-residential,

3429
02:28:17,200 --> 02:28:20,319
they would range anywhere from $2 to

3430
02:28:20,319 --> 02:28:24,800
$142 a month. Again, the $142 a month

3431
02:28:24,800 --> 02:28:30,240
would be for a Walmart or a Costco or uh

3432
02:28:30,240 --> 02:28:32,640
>> Maverick. Large facilities that have a

3433
02:28:32,640 --> 02:28:35,680
lot of traffic generate the most

3434
02:28:35,680 --> 02:28:38,399
negative impact and our roads more

3435
02:28:38,399 --> 02:28:41,600
dramatically than residentials.

3436
02:28:41,600 --> 02:28:43,840
So, this is this is a good reference for

3437
02:28:43,840 --> 02:28:46,720
us to consider moving forward. We're not

3438
02:28:46,720 --> 02:28:48,960
entirely dialed in on our recommendation

3439
02:28:48,960 --> 02:28:52,000
yet. We are in the process of evaluating

3440
02:28:52,000 --> 02:28:53,920
uh Utah Valley University in great

3441
02:28:53,920 --> 02:28:56,880
detail. We're spending some some

3442
02:28:56,880 --> 02:28:58,800
resources there and spending a lot of

3443
02:28:58,800 --> 02:29:01,439
time and money on dialing in what what

3444
02:29:01,439 --> 02:29:03,760
is going on at UVU more dramatically,

3445
02:29:03,760 --> 02:29:05,760
more more specifically, I would say I

3446
02:29:05,760 --> 02:29:07,920
should say. We've hired a firm, I think

3447
02:29:07,920 --> 02:29:09,920
it's Forox that is doing that study

3448
02:29:09,920 --> 02:29:11,680
right now. They're looking at every

3449
02:29:11,680 --> 02:29:14,080
single exit entrance coming in and out

3450
02:29:14,080 --> 02:29:15,840
of campus and they're going to be

3451
02:29:15,840 --> 02:29:17,680
collecting data. So, it's an extensive

3452
02:29:17,680 --> 02:29:19,760
data collection effort that's going to

3453
02:29:19,760 --> 02:29:21,520
take place there to more specifically

3454
02:29:21,520 --> 02:29:23,680
identify what is their impact on the

3455
02:29:23,680 --> 02:29:25,520
city as well. We knew that that was

3456
02:29:25,520 --> 02:29:29,040
going to be uh challenging of sorts

3457
02:29:29,040 --> 02:29:31,120
because BYU campus was also very

3458
02:29:31,120 --> 02:29:32,880
challenging for Provo. We're sensitive

3459
02:29:32,880 --> 02:29:34,880
to that. We're taking some extra time

3460
02:29:34,880 --> 02:29:37,920
and energy and resources to do that. So,

3461
02:29:37,920 --> 02:29:40,880
in a nutshell, $1 million of revenue on

3462
02:29:40,880 --> 02:29:43,680
average for residential um property is

3463
02:29:43,680 --> 02:29:46,000
about 90 cents a month. For

3464
02:29:46,000 --> 02:29:49,520
non-residential is around 31.

3465
02:29:49,520 --> 02:29:50,880
You might ask then I'm going to conclude

3466
02:29:50,880 --> 02:29:52,640
with the next slide. What are other

3467
02:29:52,640 --> 02:29:55,760
cities doing? What have they done?

3468
02:29:55,760 --> 02:29:57,840
Orange proposing if we were to do 4

3469
02:29:57,840 --> 02:29:59,120
million for example, that's just

3470
02:29:59,120 --> 02:30:00,399
something I'm going to throw it out

3471
02:30:00,399 --> 02:30:02,960
there. The 4 million would be 432 a

3472
02:30:02,960 --> 02:30:05,359
month for a single family dwelling in

3473
02:30:05,359 --> 02:30:07,200
Provo. They're going to go from 420 to

3474
02:30:07,200 --> 02:30:10,160
479. Highlands at 1850 and has been for

3475
02:30:10,160 --> 02:30:12,880
years and it's independent. In fact,

3476
02:30:12,880 --> 02:30:15,359
their study, well, they didn't do a

3477
02:30:15,359 --> 02:30:18,560
study. What they did is they applied

3478
02:30:18,560 --> 02:30:20,319
uh the number of parcels that they had

3479
02:30:20,319 --> 02:30:23,200
in their city and they bonded. So, they

3480
02:30:23,200 --> 02:30:25,680
divided that bond amount of x million

3481
02:30:25,680 --> 02:30:27,439
divided by the number of parcels and

3482
02:30:27,439 --> 02:30:29,439
came up with $1,850.

3483
02:30:29,439 --> 02:30:32,800
That is totally um unacceptable in terms

3484
02:30:32,800 --> 02:30:34,880
of how this legislation was adopted. So,

3485
02:30:34,880 --> 02:30:36,800
they're going to have to kick that away

3486
02:30:36,800 --> 02:30:38,640
and then start over with a new official

3487
02:30:38,640 --> 02:30:40,880
study that really looks at more of the

3488
02:30:40,880 --> 02:30:42,479
science of the trips that are being

3489
02:30:42,479 --> 02:30:44,080
generated to make it more equitable and

3490
02:30:44,080 --> 02:30:46,560
fair for everybody in that community.

3491
02:30:46,560 --> 02:30:48,720
Pleasant Grove is at 676 right now.

3492
02:30:48,720 --> 02:30:51,120
They're going to go to 1386. That's what

3493
02:30:51,120 --> 02:30:52,399
they're proposing tonight in their

3494
02:30:52,399 --> 02:30:55,680
council meeting. Mapleton 8, Vineyard

3495
02:30:55,680 --> 02:30:58,800
475 and so forth down.

3496
02:30:58,800 --> 02:31:00,640
>> Ours is the second lowest on this

3497
02:31:00,640 --> 02:31:02,880
compared to Farmington which may be

3498
02:31:02,880 --> 02:31:05,280
going up. We don't know. And that's if

3499
02:31:05,280 --> 02:31:08,319
we were to propose a $4 million um

3500
02:31:08,319 --> 02:31:10,880
increase to our revenues. If we do 2

3501
02:31:10,880 --> 02:31:11,920
million, then it's going to be half

3502
02:31:11,920 --> 02:31:14,560
that. It would be 216. 3 million is

3503
02:31:14,560 --> 02:31:16,720
going to be, you know, 25% of that. So

3504
02:31:16,720 --> 02:31:18,880
for

3505
02:31:18,880 --> 02:31:22,240
you any questions, comments, thoughts? I

3506
02:31:22,240 --> 02:31:23,760
>> have a question. So we don't currently

3507
02:31:23,760 --> 02:31:25,840
have any road bonds, right? But those

3508
02:31:25,840 --> 02:31:27,120
are

3509
02:31:27,120 --> 02:31:31,040
>> No. So, is this in is this something we

3510
02:31:31,040 --> 02:31:33,120
that we would do instead of road bonding

3511
02:31:33,120 --> 02:31:36,000
or

3512
02:31:36,000 --> 02:31:37,200
>> generate revenue? I know in the past

3513
02:31:37,200 --> 02:31:38,479
when we've had robots, we generate

3514
02:31:38,479 --> 02:31:40,479
revenue to do some of these same things.

3515
02:31:40,479 --> 02:31:42,080
>> Not contemplated road bonding,

3516
02:31:42,080 --> 02:31:43,439
>> but no, what I'm saying is is this

3517
02:31:43,439 --> 02:31:45,200
something that's done instead of

3518
02:31:45,200 --> 02:31:46,479
bonding,

3519
02:31:46,479 --> 02:31:50,950
>> right?

3520
02:31:50,960 --> 02:31:53,680
» And it's just an ongoing do we do you

3521
02:31:53,680 --> 02:31:56,000
just approve it once? When do you when

3522
02:31:56,000 --> 02:32:00,080
you want to increase it? You can you can um you can approve it for one

3523
02:32:00,080 --> 02:32:02,000
year, you can approve it for up to 10.

3524
02:32:02,000 --> 02:32:05,200
The study is good for up to 10 years

3525
02:32:05,200 --> 02:32:07,280
>> and you can change it, modify it any

3526
02:32:07,280 --> 02:32:09,920
time in between. And after 10 years, you

3527
02:32:09,920 --> 02:32:11,120
could say we're not doing it anymore.

3528
02:32:11,120 --> 02:32:12,479
After four years, you could say that or

3529
02:32:12,479 --> 02:32:14,160
whatever you wanted to do. It's very

3530
02:32:14,160 --> 02:32:17,190
flexible.

3531
02:32:17,200 --> 02:32:20,000
to go back to something that Chris said

3532
02:32:20,000 --> 02:32:22,000
early on, you have to spend money to

3533
02:32:22,000 --> 02:32:23,760
save money.

3534
02:32:23,760 --> 02:32:25,680
Or in other words, in order to keep up

3535
02:32:25,680 --> 02:32:27,280
with preventative maintenance and

3536
02:32:27,280 --> 02:32:30,160
extending the life of the road and

3537
02:32:30,160 --> 02:32:33,520
prevent five to six times more cost in

3538
02:32:33,520 --> 02:32:36,080
complete reconstruction,

3539
02:32:36,080 --> 02:32:40,640
>> uh our our I guess special opinion that

3540
02:32:40,640 --> 02:32:42,000
we're trying to share with you based off

3541
02:32:42,000 --> 02:32:44,800
of this study with parametrics is that

3542
02:32:44,800 --> 02:32:48,319
it's good to uh uh take a long-term

3543
02:32:48,319 --> 02:32:51,520
approach and and spend, you know, a

3544
02:32:51,520 --> 02:32:55,120
little bit each year And and our our

3545
02:32:55,120 --> 02:32:57,439
thought would be to treat this like we

3546
02:32:57,439 --> 02:32:59,680
do other revenue sources and other

3547
02:32:59,680 --> 02:33:02,640
master plans and studies and update it

3548
02:33:02,640 --> 02:33:05,359
regularly and bring it back to you and

3549
02:33:05,359 --> 02:33:07,040
essentially return and report not only

3550
02:33:07,040 --> 02:33:09,120
on the revenue side but on the expense

3551
02:33:09,120 --> 02:33:11,600
side and show you and the public that

3552
02:33:11,600 --> 02:33:14,720
we're doing what we've promised

3553
02:33:14,720 --> 02:33:16,880
said we're [snorts] going to do. And

3554
02:33:16,880 --> 02:33:18,800
annually we do have to review that and

3555
02:33:18,800 --> 02:33:21,040
ensure that we are we are spending the

3556
02:33:21,040 --> 02:33:22,720
money for those things that are it's

3557
02:33:22,720 --> 02:33:24,800
been designated to spend it on and our

3558
02:33:24,800 --> 02:33:27,359
focus will be local streets. John the

3559
02:33:27,359 --> 02:33:31,040
Provo example of a 14% every three years

3560
02:33:31,040 --> 02:33:32,160
we'll talk about that.

3561
02:33:32,160 --> 02:33:33,439
>> Sure.

3562
02:33:33,439 --> 02:33:34,240
>> Me or you?

3563
02:33:34,240 --> 02:33:36,880
>> No you you talked to Ver he told you

3564
02:33:36,880 --> 02:33:40,880
exactly I didn't just recently

3565
02:33:40,880 --> 02:33:44,240
had council approve a 14% increase every

3566
02:33:44,240 --> 02:33:47,200
year for three years. So you your

3567
02:33:47,200 --> 02:33:49,920
question about is it annual is it you

3568
02:33:49,920 --> 02:33:52,240
can write in how you want it right now

3569
02:33:52,240 --> 02:33:53,439
say we're going to do this for five

3570
02:33:53,439 --> 02:33:55,439
years or three years and have a set rate

3571
02:33:55,439 --> 02:34:00,309
increase with a an annual review.

3572
02:34:00,319 --> 02:34:05,359
» Yeah. So in August they they're going to jump to 479 and then

3573
02:34:05,359 --> 02:34:07,680
another 14% next August and then the

3574
02:34:07,680 --> 02:34:09,680
next one is their plan as well. So

3575
02:34:09,680 --> 02:34:12,000
they'll probably be around 550 in in

3576
02:34:12,000 --> 02:34:12,640
three years.

3577
02:34:12,640 --> 02:34:15,840
>> So was the three-year based on their

3578
02:34:15,840 --> 02:34:21,190
financial.

3579
02:34:21,200 --> 02:34:23,280
» So, is this going to be part of the

3580
02:34:23,280 --> 02:34:25,120
budget like any of the other fee

3581
02:34:25,120 --> 02:34:26,720
schedules? I mean, maybe not this

3582
02:34:26,720 --> 02:34:28,000
initially. It has to be adopted by

3583
02:34:28,000 --> 02:34:30,000
ordinance, it sounds like, but going

3584
02:34:30,000 --> 02:34:32,080
forward, is it just is it part of the

3585
02:34:32,080 --> 02:34:34,080
fee schedules and budgets?

3586
02:34:34,080 --> 02:34:37,439
>> It would end up being

3587
02:34:37,439 --> 02:34:38,800
>> whether or not we can get it in before

3588
02:34:38,800 --> 02:34:42,399
July 1st uh to meet that. It's

3589
02:34:42,399 --> 02:34:45,040
questionable, but we may be able to.

3590
02:34:45,040 --> 02:34:46,560
Yeah. So, if if we're not able to put it

3591
02:34:46,560 --> 02:34:48,800
in the fiscal 27 budget as part of the

3592
02:34:48,800 --> 02:34:51,359
actual budget, we would just come forth

3593
02:34:51,359 --> 02:34:54,000
with a a budget amendment with an

3594
02:34:54,000 --> 02:34:58,479
ordinance and had it at whatever time

3595
02:34:58,479 --> 02:35:01,200
was felt that it was ready

3596
02:35:01,200 --> 02:35:04,000
>> and then in the following depending on

3597
02:35:04,000 --> 02:35:08,000
the timing then it would be included as

3598
02:35:08,000 --> 02:35:10,800
part of the 28.

3599
02:35:10,800 --> 02:35:12,319
But but the process for this is

3600
02:35:12,319 --> 02:35:13,920
different than the truth and taxation

3601
02:35:13,920 --> 02:35:14,560
that we're talking about.

3602
02:35:14,560 --> 02:35:15,840
>> That's right. It's entirely different.

3603
02:35:15,840 --> 02:35:16,399
>> Yes.

3604
02:35:16,399 --> 02:35:17,680
>> Really simpler. It sounds

3605
02:35:17,680 --> 02:35:18,960
>> says that we need to have a public

3606
02:35:18,960 --> 02:35:21,280
hearing.

3607
02:35:21,280 --> 02:35:24,720
>> Um yeah. So with with for example impact

3608
02:35:24,720 --> 02:35:27,840
fees, you need to have a 90-day period.

3609
02:35:27,840 --> 02:35:29,760
This doesn't say that you have to have a

3610
02:35:29,760 --> 02:35:31,680
90-day period, but you do have a a

3611
02:35:31,680 --> 02:35:34,800
public hearing and adoption.

3612
02:35:34,800 --> 02:35:37,359
and we will do some positive outreach to

3613
02:35:37,359 --> 02:35:40,160
the community and and uh making them a

3614
02:35:40,160 --> 02:35:42,560
aware and involved in in that process

3615
02:35:42,560 --> 02:35:44,800
throughout. In Fred's presentation, he

3616
02:35:44,800 --> 02:35:47,200
suggested that there was going to be a

3617
02:35:47,200 --> 02:35:52,000
tough u revenue source. Well, I think

3618
02:35:52,000 --> 02:35:54,640
generally it's around let's say it's 10%

3619
02:35:54,640 --> 02:35:56,800
of this would go to the general fund.

3620
02:35:56,800 --> 02:36:00,640
So, if it were $4 million

3621
02:36:00,640 --> 02:36:03,120
that would be uh carved away and put

3622
02:36:03,120 --> 02:36:06,640
into the general fund, well, be used for

3623
02:36:06,640 --> 02:36:12,309
general fund purposes potentially

3624
02:36:12,319 --> 02:36:16,319
and that could do some offsetting of

3625
02:36:16,319 --> 02:36:22,469
your adjustments on a time.

3626
02:36:22,479 --> 02:36:25,200
Um maybe just an additional highlight

3627
02:36:25,200 --> 02:36:29,680
here with with this comparison, right?

3628
02:36:29,680 --> 02:36:32,800
It's obviously never fun to propose new

3629
02:36:32,800 --> 02:36:35,680
fees or increasing fees. That being

3630
02:36:35,680 --> 02:36:39,760
said, um you know, it's it's not like we

3631
02:36:39,760 --> 02:36:43,439
have doctorred these numbers. This this

3632
02:36:43,439 --> 02:36:47,439
really is has turned out to be you know

3633
02:36:47,439 --> 02:36:49,840
an interesting comparison that the city

3634
02:36:49,840 --> 02:36:53,600
really has done a really good job of you

3635
02:36:53,600 --> 02:36:56,160
know upkeeping and doing as much upkeep

3636
02:36:56,160 --> 02:36:58,960
as much maintenance much preventative uh

3637
02:36:58,960 --> 02:37:00,800
maintenance efforts on our roads as

3638
02:37:00,800 --> 02:37:04,640
possible. Um and and you know in order

3639
02:37:04,640 --> 02:37:07,280
to keep that up um we've got to charge

3640
02:37:07,280 --> 02:37:10,800
something but we're still doing better

3641
02:37:10,800 --> 02:37:12,399
than pretty much everyone else

3642
02:37:12,399 --> 02:37:15,200
especially compared to the total volume

3643
02:37:15,200 --> 02:37:18,160
of local streets that we have within the

3644
02:37:18,160 --> 02:37:19,760
city.

3645
02:37:19,760 --> 02:37:21,680
Please

3646
02:37:21,680 --> 02:37:23,920
uh is it a fair assumption to to say

3647
02:37:23,920 --> 02:37:26,560
that the non-residential

3648
02:37:26,560 --> 02:37:29,920
rates uh are

3649
02:37:29,920 --> 02:37:32,560
similar ratios there with other cities?

3650
02:37:32,560 --> 02:37:34,399
Have you looked into that?

3651
02:37:34,399 --> 02:37:36,160
>> So we have looked into this. Not

3652
02:37:36,160 --> 02:37:38,880
everyone has adopted the same uh

3653
02:37:38,880 --> 02:37:41,120
schedule, you could say. In fact, we

3654
02:37:41,120 --> 02:37:42,640
were having a discussion regarding this

3655
02:37:42,640 --> 02:37:44,880
earlier. It seems too finite. It seems

3656
02:37:44,880 --> 02:37:47,520
too tight. we feel like maybe maybe

3657
02:37:47,520 --> 02:37:50,160
those could be, you know, farther apart.

3658
02:37:50,160 --> 02:37:53,040
Other communities, uh, they don't some

3659
02:37:53,040 --> 02:37:54,880
of them don't do this at all. They have

3660
02:37:54,880 --> 02:37:57,120
a range and an application based on, for

3661
02:37:57,120 --> 02:37:59,359
example, in vineyard, they have a cost

3662
02:37:59,359 --> 02:38:01,920
per square foot. And as we looked at our

3663
02:38:01,920 --> 02:38:03,520
cost comparisons to theirs, something

3664
02:38:03,520 --> 02:38:06,479
that might cost us or a property owner

3665
02:38:06,479 --> 02:38:10,560
about five $500 for $4 million note,

3666
02:38:10,560 --> 02:38:13,280
theirs would be like $7,800 a month,

3667
02:38:13,280 --> 02:38:16,080
something like that. So they've been in

3668
02:38:16,080 --> 02:38:18,000
the newspaper most recently regarding

3669
02:38:18,000 --> 02:38:20,960
how they did theirs or uh and approached

3670
02:38:20,960 --> 02:38:23,120
theirs. Some some have done it more

3671
02:38:23,120 --> 02:38:26,160
finite like this with ADTS, but I'd say

3672
02:38:26,160 --> 02:38:27,520
there's a good portion that have not

3673
02:38:27,520 --> 02:38:29,439
done that and they're going to be

3674
02:38:29,439 --> 02:38:32,160
required to create that nexus for ADTS

3675
02:38:32,160 --> 02:38:34,160
and what the services that's being

3676
02:38:34,160 --> 02:38:37,439
offered. Um not everyone does it like

3677
02:38:37,439 --> 02:38:39,200
this. So this is just Provo actually

3678
02:38:39,200 --> 02:38:41,840
which is a tried and trueue I would say

3679
02:38:41,840 --> 02:38:44,560
methodology that the state legislators

3680
02:38:44,560 --> 02:38:46,399
have looked at specifically in creating

3681
02:38:46,399 --> 02:38:49,359
this legislation. So we kind of modeled

3682
02:38:49,359 --> 02:38:51,840
ours and hired that same uh team team

3683
02:38:51,840 --> 02:38:56,560
that did theirs back 10 13 years ago.

3684
02:38:56,560 --> 02:38:58,080
They're they're similar but they're not

3685
02:38:58,080 --> 02:39:00,080
exactly the same. What I think I'm

3686
02:39:00,080 --> 02:39:01,600
hearing is that some other

3687
02:39:01,600 --> 02:39:03,359
municipalities don't do this at all.

3688
02:39:03,359 --> 02:39:04,560
Some of them used a very different

3689
02:39:04,560 --> 02:39:06,479
methodology and have wildly diverse

3690
02:39:06,479 --> 02:39:07,920
numbers compared to what you presented.

3691
02:39:07,920 --> 02:39:10,080
>> Correct. So if I could I I'll just

3692
02:39:10,080 --> 02:39:14,560
mention Highland. They have no they have no they've disregarded the the

3693
02:39:14,560 --> 02:39:15,840
amount of trips that are going to be

3694
02:39:15,840 --> 02:39:18,080
generated by the individual properties

3695
02:39:18,080 --> 02:39:20,000
altogether. They took a number divided

3696
02:39:20,000 --> 02:39:21,359
it by the number of parcels and said

3697
02:39:21,359 --> 02:39:23,280
everyone's in for the same thing

3698
02:39:23,280 --> 02:39:25,760
regardless. That's not going to pass the

3699
02:39:25,760 --> 02:39:27,920
muster with the state legislature. There

3700
02:39:27,920 --> 02:39:30,399
have to we'll have to redo that. I think

3701
02:39:30,399 --> 02:39:32,560
uh American Fork's doing it. Pleasant

3702
02:39:32,560 --> 02:39:34,000
Grove is going to re there's there are

3703
02:39:34,000 --> 02:39:36,000
several that are out there that have

3704
02:39:36,000 --> 02:39:38,000
something in place that doesn't follow

3705
02:39:38,000 --> 02:39:40,720
the requirements of this bill.

3706
02:39:40,720 --> 02:39:42,880
>> It sounds like the methodology used here

3707
02:39:42,880 --> 02:39:46,319
was um to most closely uh reflect what

3708
02:39:46,319 --> 02:39:48,800
the legislators and what the legislature

3709
02:39:48,800 --> 02:39:50,160
was intending

3710
02:39:50,160 --> 02:39:51,680
>> 100% this bill.

3711
02:39:51,680 --> 02:39:54,080
>> It's true. This is not related to your

3712
02:39:54,080 --> 02:39:56,240
purpose today, but at some point in the

3713
02:39:56,240 --> 02:39:57,760
future,

3714
02:39:57,760 --> 02:40:01,200
uh uh I would love to see

3715
02:40:01,200 --> 02:40:03,280
the age of all of our roads.

3716
02:40:03,280 --> 02:40:04,000
>> Yeah.

3717
02:40:04,000 --> 02:40:06,160
>> Because what I inferred from your

3718
02:40:06,160 --> 02:40:07,520
previous comment is that we have a lot

3719
02:40:07,520 --> 02:40:09,600
of roads that are pretty old and pretty

3720
02:40:09,600 --> 02:40:12,479
old at the same age.

3721
02:40:12,479 --> 02:40:16,399
>> Uh and we want to try to avoid mass

3722
02:40:16,399 --> 02:40:17,120
failures. Right.

3723
02:40:17,120 --> 02:40:20,640
>> Right. I mean, I think mayor asked if we

3724
02:40:20,640 --> 02:40:23,040
were considered bonding. If you had if

3725
02:40:23,040 --> 02:40:25,760
80 if 70% of our street surfaces were

3726
02:40:25,760 --> 02:40:28,080
failing all at once, we'd have to really

3727
02:40:28,080 --> 02:40:30,800
seriously look at doing a bond

3728
02:40:30,800 --> 02:40:33,680
and then probably multiple bonds. But

3729
02:40:33,680 --> 02:40:34,479
that's where

3730
02:40:34,479 --> 02:40:36,479
>> replace bonds. That was my question was

3731
02:40:36,479 --> 02:40:37,600
to replace

3732
02:40:37,600 --> 02:40:40,080
>> bonding. This may help us avoid that

3733
02:40:40,080 --> 02:40:40,880
situation.

3734
02:40:40,880 --> 02:40:44,319
>> Yes. I would say this would hopefully

3735
02:40:44,319 --> 02:40:47,040
prevent the need for a vote.

3736
02:40:47,040 --> 02:40:47,920
>> That that's Yeah.

3737
02:40:47,920 --> 02:40:48,240
>> Yes.

3738
02:40:48,240 --> 02:40:50,560
>> That's that's a better that's better to

3739
02:40:50,560 --> 02:40:51,359
describe. So I think

3740
02:40:51,359 --> 02:40:53,280
>> so we're kind of at a point right now

3741
02:40:53,280 --> 02:40:55,359
tipping point I would say is most of our

3742
02:40:55,359 --> 02:40:57,840
locals are over 25 20 25 years old.

3743
02:40:57,840 --> 02:41:00,319
That's 75% of our asphalt surface in the

3744
02:41:00,319 --> 02:41:02,720
city. And the life there's only a finite

3745
02:41:02,720 --> 02:41:04,479
life on a road surface. We can extend it

3746
02:41:04,479 --> 02:41:06,560
as long as we can with with some tack

3747
02:41:06,560 --> 02:41:08,240
oil and some surface treatments and a

3748
02:41:08,240 --> 02:41:10,080
slurry seal and so forth, but eventually

3749
02:41:10,080 --> 02:41:11,920
we're going to spend more money to do an

3750
02:41:11,920 --> 02:41:14,479
overlay or eventually a reconstruct both

3751
02:41:14,479 --> 02:41:16,080
to prevent it from getting to that

3752
02:41:16,080 --> 02:41:19,760
point. But it is the nature of

3753
02:41:19,760 --> 02:41:24,469
degrading infrastructure.

3754
02:41:24,479 --> 02:41:27,359
Chris, also in terms of council me

3755
02:41:27,359 --> 02:41:30,080
member Mikum's request, I think we I

3756
02:41:30,080 --> 02:41:32,880
think we can readily provide the grades

3757
02:41:32,880 --> 02:41:36,640
that we we go through quite regularly

3758
02:41:36,640 --> 02:41:38,800
and grade all of our streets throughout

3759
02:41:38,800 --> 02:41:41,120
the city. Right. So, and based off of

3760
02:41:41,120 --> 02:41:44,479
that, we can estimate what its life is.

3761
02:41:44,479 --> 02:41:44,960
>> Yes.

3762
02:41:44,960 --> 02:41:47,600
>> Or when it'll need to be

3763
02:41:47,600 --> 02:41:50,080
>> or in the next uh level of maintenance.

3764
02:41:50,080 --> 02:41:51,680
We're updating our state of the streets

3765
02:41:51,680 --> 02:41:53,520
document right now and then that'll have

3766
02:41:53,520 --> 02:41:55,120
the most current information in there

3767
02:41:55,120 --> 02:41:57,520
that I share that with you that's

3768
02:41:57,520 --> 02:41:59,920
available. The 2021 is online right now

3769
02:41:59,920 --> 02:42:02,080
too. If you go to orgov go to public

3770
02:42:02,080 --> 02:42:03,520
works state of the streets that's out

3771
02:42:03,520 --> 02:42:05,520
there as well and I'll share that link

3772
02:42:05,520 --> 02:42:06,720
with you.

3773
02:42:06,720 --> 02:42:09,680
>> Thank you Chris.

3774
02:42:09,680 --> 02:42:12,080
>> Anything else?

3775
02:42:12,080 --> 02:42:18,870
>> Okay. Thank you.

3776
02:42:18,880 --> 02:42:28,230
eggs crisp.

3777
02:42:28,240 --> 02:42:31,920
I'm just going to zoom from here.

3778
02:42:31,920 --> 02:42:33,760
So, while Jennica's setting up, we're

3779
02:42:33,760 --> 02:42:35,120
going to talk about employee

3780
02:42:35,120 --> 02:42:37,680
compensation. And as you heard from

3781
02:42:37,680 --> 02:42:41,359
Fred's presentation, about 65 to 75% of

3782
02:42:41,359 --> 02:42:44,640
the budget issues in personnel cost. And

3783
02:42:44,640 --> 02:42:46,000
so we're going to talk about our

3784
02:42:46,000 --> 02:42:47,520
compensation

3785
02:42:47,520 --> 02:42:49,280
plan for the what we've done in the past

3786
02:42:49,280 --> 02:42:50,720
and what we're planning on doing in the

3787
02:42:50,720 --> 02:42:52,720
future and some of the metrics that

3788
02:42:52,720 --> 02:42:56,319
we've found from sister cities. Um but

3789
02:42:56,319 --> 02:42:58,560
one thing I wanted to mention to you all

3790
02:42:58,560 --> 02:43:00,880
is how much we appreciate as employees

3791
02:43:00,880 --> 02:43:06,240
as a whole of how much you uh appreciate

3792
02:43:06,240 --> 02:43:08,640
the staff and what we do for the city

3793
02:43:08,640 --> 02:43:12,000
and and helping us to pay a fair fair

3794
02:43:12,000 --> 02:43:14,880
wage. so that um we can provide the best

3795
02:43:14,880 --> 02:43:16,479
services that we can to the community.

3796
02:43:16,479 --> 02:43:18,319
So we appreciate you making that one of

3797
02:43:18,319 --> 02:43:20,880
your areas of focus is a skilled and

3798
02:43:20,880 --> 02:43:24,560
talented workforce. Um and as always we

3799
02:43:24,560 --> 02:43:26,640
try and make our current and existing

3800
02:43:26,640 --> 02:43:29,600
employees our number one priority when

3801
02:43:29,600 --> 02:43:31,760
we're compensation before we look at any

3802
02:43:31,760 --> 02:43:34,399
expenditure like that. Some of the

3803
02:43:34,399 --> 02:43:37,200
drivers in the increase to compensation

3804
02:43:37,200 --> 02:43:40,560
uhly has been driven by police and fire

3805
02:43:40,560 --> 02:43:43,760
wages. Um nationwide those wages have

3806
02:43:43,760 --> 02:43:48,000
been increasing skyrocketing paces

3807
02:43:48,000 --> 02:43:49,840
seeing it temper just a little bit but

3808
02:43:49,840 --> 02:43:52,800
they are still outpacing all other

3809
02:43:52,800 --> 02:43:54,399
employee.

3810
02:43:54,399 --> 02:43:56,479
And then also medical insurance. We've

3811
02:43:56,479 --> 02:43:59,680
seen double digit increases insurance

3812
02:43:59,680 --> 02:44:03,520
last few years which most entities and

3813
02:44:03,520 --> 02:44:05,600
public sectors have seen the same. So

3814
02:44:05,600 --> 02:44:08,080
with that I just want you guys to know

3815
02:44:08,080 --> 02:44:10,399
how much time Janica puts into these

3816
02:44:10,399 --> 02:44:14,000
compensation researches. she um does

3817
02:44:14,000 --> 02:44:16,800
such a thorough job in looking at this

3818
02:44:16,800 --> 02:44:20,240
uh at least twice a year and um was very

3819
02:44:20,240 --> 02:44:22,720
thoughtful in uh being fiscally

3820
02:44:22,720 --> 02:44:24,720
responsible in the recommendations that

3821
02:44:24,720 --> 02:44:27,279
we get. So with that, Jim Kev,

3822
02:44:27,279 --> 02:44:29,120
>> thank you. So I'm just going to explain

3823
02:44:29,120 --> 02:44:31,120
a little bit of our process and how we

3824
02:44:31,120 --> 02:44:33,439
determine compensation increases for our

3825
02:44:33,439 --> 02:44:36,080
employees. So, um, like Krie mentioned,

3826
02:44:36,080 --> 02:44:37,279
for the past few years, we've really

3827
02:44:37,279 --> 02:44:38,640
tried to make it a focus that we're

3828
02:44:38,640 --> 02:44:40,319
doing these regular market surveys that

3829
02:44:40,319 --> 02:44:42,160
we're not just waiting for every 5 years

3830
02:44:42,160 --> 02:44:43,600
to see how are we doing compared to

3831
02:44:43,600 --> 02:44:44,960
cities. We're looking at it twice a

3832
02:44:44,960 --> 02:44:47,680
year, every position in the city. So, we

3833
02:44:47,680 --> 02:44:49,279
look at every single position in the

3834
02:44:49,279 --> 02:44:52,000
city and then look at a core group of

3835
02:44:52,000 --> 02:44:53,760
comparable cities and it's really the 10

3836
02:44:53,760 --> 02:44:56,240
largest cities in Utah plus uh Salt Lake

3837
02:44:56,240 --> 02:44:58,319
Utah County, the state, and then for

3838
02:44:58,319 --> 02:44:59,840
public safety, we also have a few

3839
02:44:59,840 --> 02:45:01,760
additional entities we look at. And then

3840
02:45:01,760 --> 02:45:03,920
for positions that may be more unique,

3841
02:45:03,920 --> 02:45:05,520
we can look outside of this group as

3842
02:45:05,520 --> 02:45:07,439
well. But we kind of focus it on this

3843
02:45:07,439 --> 02:45:08,880
because that's really the market that we

3844
02:45:08,880 --> 02:45:11,680
compete in within the state and locally.

3845
02:45:11,680 --> 02:45:14,800
So um we utilize what's called Techna

3846
02:45:14,800 --> 02:45:16,720
and it's a database where all entities

3847
02:45:16,720 --> 02:45:19,520
input their positions as job

3848
02:45:19,520 --> 02:45:22,319
descriptions, uh salary ranges, actual

3849
02:45:22,319 --> 02:45:24,399
pay information. We verify that with

3850
02:45:24,399 --> 02:45:26,399
their budget documents, with their human

3851
02:45:26,399 --> 02:45:28,880
resources departments. Um, make sure

3852
02:45:28,880 --> 02:45:30,720
that they're comparable positions, look

3853
02:45:30,720 --> 02:45:32,240
at their benefits as well. That's part

3854
02:45:32,240 --> 02:45:36,240
of the database. Uh, and then we want to

3855
02:45:36,240 --> 02:45:37,680
make sure each of our positions is

3856
02:45:37,680 --> 02:45:40,319
within market. So, we're really looking

3857
02:45:40,319 --> 02:45:42,000
at it individually. Kind of in the past,

3858
02:45:42,000 --> 02:45:44,000
what was done is kind of just across the

3859
02:45:44,000 --> 02:45:45,439
board. Everyone's getting a certain

3860
02:45:45,439 --> 02:45:47,439
percentage market or a lot of entities

3861
02:45:47,439 --> 02:45:50,319
would be considered a cola increase. Um,

3862
02:45:50,319 --> 02:45:52,640
and then there's a set merit, but we

3863
02:45:52,640 --> 02:45:54,080
really look at individual positions

3864
02:45:54,080 --> 02:45:55,680
because we want to allocate those budget

3865
02:45:55,680 --> 02:45:57,920
dollars to the positions that need them

3866
02:45:57,920 --> 02:46:00,160
most. For example, recent years it's

3867
02:46:00,160 --> 02:46:01,920
been police and fire have had those

3868
02:46:01,920 --> 02:46:04,160
really competitive within the cities and

3869
02:46:04,160 --> 02:46:07,439
statewide, nationwide. So, um, we look

3870
02:46:07,439 --> 02:46:08,880
at that to make sure we're within the

3871
02:46:08,880 --> 02:46:10,399
market and then when there's a position

3872
02:46:10,399 --> 02:46:12,160
that's lagging or we're seeing trends

3873
02:46:12,160 --> 02:46:15,359
that that's increasing, we will

3874
02:46:15,359 --> 02:46:17,680
recommend or consider budget market

3875
02:46:17,680 --> 02:46:19,920
adjustments for that position.

3876
02:46:19,920 --> 02:46:23,439
Um, so this is probably small for you,

3877
02:46:23,439 --> 02:46:25,840
but this is kind of an overview of what

3878
02:46:25,840 --> 02:46:27,359
other cities do. And some of them are

3879
02:46:27,359 --> 02:46:28,960
kind of that traditional. They just give

3880
02:46:28,960 --> 02:46:31,840
everyone kind of the same set increase.

3881
02:46:31,840 --> 02:46:33,840
Some are very variable. I would say most

3882
02:46:33,840 --> 02:46:36,080
of them, even in these percentage

3883
02:46:36,080 --> 02:46:38,399
numbers that may not reflect what they

3884
02:46:38,399 --> 02:46:40,640
did. They may have given more to public

3885
02:46:40,640 --> 02:46:42,240
safety, but this is kind of generally

3886
02:46:42,240 --> 02:46:44,160
what they did this last fiscal year for

3887
02:46:44,160 --> 02:46:45,760
employees. So, we're kind of seeing

3888
02:46:45,760 --> 02:46:48,880
anywhere from 1 to 11% total increases

3889
02:46:48,880 --> 02:46:51,359
among cities. Obviously, that doesn't

3890
02:46:51,359 --> 02:46:53,680
reflect everything because we don't know

3891
02:46:53,680 --> 02:46:55,200
exactly where they were to start with,

3892
02:46:55,200 --> 02:46:56,800
what their strategy is, where they want

3893
02:46:56,800 --> 02:46:58,720
to be in the market, but we're kind of

3894
02:46:58,720 --> 02:47:01,359
seeing that. I mean, wages continue to

3895
02:47:01,359 --> 02:47:03,040
increase significantly. And as we do

3896
02:47:03,040 --> 02:47:04,560
those market studies, we're really able

3897
02:47:04,560 --> 02:47:08,319
to see where that is. So, um, for us,

3898
02:47:08,319 --> 02:47:10,399
again, we kind of were across the board

3899
02:47:10,399 --> 02:47:13,040
based on the market study. So, every

3900
02:47:13,040 --> 02:47:15,520
position in the city is eligible for a

3901
02:47:15,520 --> 02:47:19,439
3% typically uh merit or step increase

3902
02:47:19,439 --> 02:47:20,800
depending on if they're in the STEP

3903
02:47:20,800 --> 02:47:22,880
program or just a regular merit

3904
02:47:22,880 --> 02:47:25,600
employee. And then in addition to that,

3905
02:47:25,600 --> 02:47:27,520
targeted market adjustments were given

3906
02:47:27,520 --> 02:47:30,160
to certain positions. So, for kind of

3907
02:47:30,160 --> 02:47:32,880
our traditional employees, uh certain

3908
02:47:32,880 --> 02:47:35,439
positions had an increase at one point

3909
02:47:35,439 --> 02:47:36,800
or another during the year, other

3910
02:47:36,800 --> 02:47:40,240
positions have not. Uh but in last July

3911
02:47:40,240 --> 02:47:43,359
there was a average for those positions

3912
02:47:43,359 --> 02:47:46,880
outside of sworn police and fire. Um and

3913
02:47:46,880 --> 02:47:48,720
then in March we also made an additional

3914
02:47:48,720 --> 02:47:50,479
adjustment based on an additional market

3915
02:47:50,479 --> 02:47:52,880
study for certain positions. And then

3916
02:47:52,880 --> 02:47:57,040
our sworn police uh we looked at that uh

3917
02:47:57,040 --> 02:47:59,200
kind of after last fiscal year started

3918
02:47:59,200 --> 02:48:01,120
just to see where we're at. And based on

3919
02:48:01,120 --> 02:48:03,439
that there was a larger increase for our

3920
02:48:03,439 --> 02:48:06,160
the majority of our police officers last

3921
02:48:06,160 --> 02:48:08,560
um October. And again, all these

3922
02:48:08,560 --> 02:48:11,200
positions are also eligible for their 3%

3923
02:48:11,200 --> 02:48:14,000
annual merit or step increase. So that's

3924
02:48:14,000 --> 02:48:16,080
where the 10% comes from. And then for

3925
02:48:16,080 --> 02:48:18,800
our fire, there was certain positions

3926
02:48:18,800 --> 02:48:22,080
that received adjustments last July. And

3927
02:48:22,080 --> 02:48:24,479
then again in March, there was an

3928
02:48:24,479 --> 02:48:26,479
additional kind of across the board, but

3929
02:48:26,479 --> 02:48:28,960
targeted by position increase for our

3930
02:48:28,960 --> 02:48:31,040
sworn fire. So ours is kind of

3931
02:48:31,040 --> 02:48:33,760
convoluted as you'll see, but yeah. So,

3932
02:48:33,760 --> 02:48:35,359
this is going to just sound probably not

3933
02:48:35,359 --> 02:48:37,279
too intelligent, but so I'm just looking

3934
02:48:37,279 --> 02:48:39,040
at this and I'm just breaking it down

3935
02:48:39,040 --> 02:48:41,439
super easy, simple, probably shouldn't

3936
02:48:41,439 --> 02:48:45,359
be, but so I'm looking at market.

3937
02:48:45,359 --> 02:48:46,000
Several are

3938
02:48:46,000 --> 02:48:47,680
>> cola

3939
02:48:47,680 --> 02:48:49,439
>> and and then there's a few that are

3940
02:48:49,439 --> 02:48:51,680
market. So, if we're always going out to

3941
02:48:51,680 --> 02:48:54,000
market, are we just making adjustments

3942
02:48:54,000 --> 02:48:59,200
based on other cities cola adjustments?

3943
02:48:59,200 --> 02:49:00,960
Do you see what I'm saying? We're taking

3944
02:49:00,960 --> 02:49:03,200
into they're they're they're doing cola,

3945
02:49:03,200 --> 02:49:03,760
>> right?

3946
02:49:03,760 --> 02:49:06,800
>> And then we're using their merit cola

3947
02:49:06,800 --> 02:49:10,640
combo for our market and then we're

3948
02:49:10,640 --> 02:49:12,560
doing merit on top of that

3949
02:49:12,560 --> 02:49:14,800
>> in addition to that.

3950
02:49:14,800 --> 02:49:16,960
>> Correct. But it's really just ranges

3951
02:49:16,960 --> 02:49:20,479
we're looking at and and they also do

3952
02:49:20,479 --> 02:49:22,399
merit increases on top of their market

3953
02:49:22,399 --> 02:49:23,520
increases.

3954
02:49:23,520 --> 02:49:25,279
>> And then do they decide their cola every

3955
02:49:25,279 --> 02:49:27,359
year or is it based on CPI? How do they

3956
02:49:27,359 --> 02:49:30,160
do their cola? Um I don't think any city

3957
02:49:30,160 --> 02:49:32,240
does actually CPI because I don't think

3958
02:49:32,240 --> 02:49:34,640
any city would actually afford that.

3959
02:49:34,640 --> 02:49:35,120
Okay.

3960
02:49:35,120 --> 02:49:38,560
>> Um they they call it cost of living

3961
02:49:38,560 --> 02:49:40,240
>> whatever they decide. So these are not

3962
02:49:40,240 --> 02:49:42,399
based on any metric or index.

3963
02:49:42,399 --> 02:49:44,000
>> I mean they consider that a lot of them

3964
02:49:44,000 --> 02:49:46,640
say yeah we're we're looking at CPI but

3965
02:49:46,640 --> 02:49:48,240
a lot of times it's just what budget

3966
02:49:48,240 --> 02:49:49,680
availability and some of them are just

3967
02:49:49,680 --> 02:49:51,279
like this is traditionally what we do.

3968
02:49:51,279 --> 02:49:51,680
So

3969
02:49:51,680 --> 02:49:55,359
>> thanks. I would also say another nuance

3970
02:49:55,359 --> 02:49:57,760
that is included though by going and

3971
02:49:57,760 --> 02:50:00,960
looking at market is every city has

3972
02:50:00,960 --> 02:50:04,800
turnover andor promotions too. And so

3973
02:50:04,800 --> 02:50:06,720
when when someone's promoted or when

3974
02:50:06,720 --> 02:50:10,240
someone's hired uh they may negotiate a

3975
02:50:10,240 --> 02:50:11,760
different salary than the person that

3976
02:50:11,760 --> 02:50:14,960
was in their spot beforehand. So so

3977
02:50:14,960 --> 02:50:18,720
looking at uh targeted market increases

3978
02:50:18,720 --> 02:50:21,120
takes that into account as well.

3979
02:50:21,120 --> 02:50:22,640
>> Okay. Plus, we're not playing the game

3980
02:50:22,640 --> 02:50:24,720
we were playing with police back in 2020

3981
02:50:24,720 --> 02:50:26,319
where it was just everybody just trying

3982
02:50:26,319 --> 02:50:28,160
to top everybody else. It just got out

3983
02:50:28,160 --> 02:50:29,279
of control.

3984
02:50:29,279 --> 02:50:31,840
>> I do think there's some of that still,

3985
02:50:31,840 --> 02:50:34,000
but I and Chief, you could probably

3986
02:50:34,000 --> 02:50:36,000
speak to that. I do feel like it's

3987
02:50:36,000 --> 02:50:37,760
plateauing a little bit. It's still

3988
02:50:37,760 --> 02:50:40,479
increasing, but I still kind of plateau.

3989
02:50:40,479 --> 02:50:42,800
>> I think that both cities are filling

3990
02:50:42,800 --> 02:50:45,760
that pinch that we are now. I do think

3991
02:50:45,760 --> 02:50:47,439
we're stabilizing. I think the issue

3992
02:50:47,439 --> 02:50:50,000
that we have more than that is the pool

3993
02:50:50,000 --> 02:50:51,840
of applicants that are interested in

3994
02:50:51,840 --> 02:50:54,560
going into police work that that's

3995
02:50:54,560 --> 02:50:57,120
really limiting the the pool.

3996
02:50:57,120 --> 02:50:59,279
>> Yeah.

3997
02:50:59,279 --> 02:51:00,399
>> And I would say that's also put

3998
02:51:00,399 --> 02:51:02,640
pressures on the wages too to attract

3999
02:51:02,640 --> 02:51:03,840
>> not just the competition with other

4000
02:51:03,840 --> 02:51:06,160
cities but the pool size of the pool of

4001
02:51:06,160 --> 02:51:08,800
applicants in your specific fields.

4002
02:51:08,800 --> 02:51:11,120
>> It's not a there's not one single

4003
02:51:11,120 --> 02:51:14,000
solution. Um I would say pay is part of

4004
02:51:14,000 --> 02:51:18,378
it. I'd say the job is part of it. Um,

4005
02:51:18,378 --> 02:51:18,960
[clears throat]

4006
02:51:18,960 --> 02:51:21,520
so there's a lot of factors that are can

4007
02:51:21,520 --> 02:51:22,800
get difficult and

4008
02:51:22,800 --> 02:51:24,319
>> that was part of what we had tried to

4009
02:51:24,319 --> 02:51:26,640
fight that in 2021 or to push against

4010
02:51:26,640 --> 02:51:28,880
that was our culture, our department

4011
02:51:28,880 --> 02:51:30,000
culture.

4012
02:51:30,000 --> 02:51:31,359
>> Want to come

4013
02:51:31,359 --> 02:51:33,439
>> through

4014
02:51:33,439 --> 02:51:35,520
outstanding that it's still a challenge.

4015
02:51:35,520 --> 02:51:36,960
>> Still very challenging. Okay, good to

4016
02:51:36,960 --> 02:51:39,680
know. I would say one advantage that we

4017
02:51:39,680 --> 02:51:42,720
do have too is our hybrid step program

4018
02:51:42,720 --> 02:51:45,359
where um every three years they have an

4019
02:51:45,359 --> 02:51:48,399
opportunity to get a super bump but we

4020
02:51:48,399 --> 02:51:50,720
also get a higher skilled workforce too

4021
02:51:50,720 --> 02:51:53,439
with that super bump. So we benefit from

4022
02:51:53,439 --> 02:51:54,960
pushing people through the range a

4023
02:51:54,960 --> 02:51:56,880
little bit quicker but we also have

4024
02:51:56,880 --> 02:51:59,760
higher higher trained higher certified

4025
02:51:59,760 --> 02:52:02,000
uh police and fire personnel in the

4026
02:52:02,000 --> 02:52:08,790
which is the ideology we decided.

4027
02:52:08,800 --> 02:52:10,560
All right. And then for this upcoming

4028
02:52:10,560 --> 02:52:12,399
fiscal year, what what we're budgeting

4029
02:52:12,399 --> 02:52:15,840
and planning for um is to conduct an

4030
02:52:15,840 --> 02:52:18,319
additional market study this fall. So

4031
02:52:18,319 --> 02:52:19,840
with just wrapping up recent

4032
02:52:19,840 --> 02:52:21,520
adjustments, we feel that that will be a

4033
02:52:21,520 --> 02:52:22,720
good time that we're going to be able to

4034
02:52:22,720 --> 02:52:24,080
know exactly what other cities do

4035
02:52:24,080 --> 02:52:25,680
because right now as we talk to other

4036
02:52:25,680 --> 02:52:26,960
cities, it's still a guessing game.

4037
02:52:26,960 --> 02:52:28,399
They're like, "Oh, this is what we're

4038
02:52:28,399 --> 02:52:30,640
hoping for, but we don't know what we're

4039
02:52:30,640 --> 02:52:31,680
going to have." So that's going to

4040
02:52:31,680 --> 02:52:33,200
enable us to be able to know exactly

4041
02:52:33,200 --> 02:52:35,200
what they do and allocate those funds

4042
02:52:35,200 --> 02:52:38,080
where they need to be spent uh for those

4043
02:52:38,080 --> 02:52:39,920
positions that need it most. And so we

4044
02:52:39,920 --> 02:52:41,840
plan to kind of do this a similar thing

4045
02:52:41,840 --> 02:52:43,680
where we're implementing targeted market

4046
02:52:43,680 --> 02:52:46,319
adjustments later this calendar year or

4047
02:52:46,319 --> 02:52:48,640
early next calendar year. Uh this will

4048
02:52:48,640 --> 02:52:51,120
also align market increases to positions

4049
02:52:51,120 --> 02:52:53,040
with our health insurance premium

4050
02:52:53,040 --> 02:52:55,760
increases. So if employees are

4051
02:52:55,760 --> 02:52:57,439
experiencing an increase as Krie talked

4052
02:52:57,439 --> 02:52:59,200
about we've seen really large increases

4053
02:52:59,200 --> 02:53:00,640
to our health and dental and some of

4054
02:53:00,640 --> 02:53:03,120
that is shouldered by employees that

4055
02:53:03,120 --> 02:53:05,279
this will align making sure that that's

4056
02:53:05,279 --> 02:53:06,720
part of you know if they have a market

4057
02:53:06,720 --> 02:53:08,880
adjustment that helps soften the blow.

4058
02:53:08,880 --> 02:53:11,920
Um and then funding merit and step

4059
02:53:11,920 --> 02:53:15,040
increases we are able to work within our

4060
02:53:15,040 --> 02:53:16,479
budget to fund those and our career

4061
02:53:16,479 --> 02:53:18,720
ladder increases uh to make sure that

4062
02:53:18,720 --> 02:53:20,399
employees can progress quickly

4063
02:53:20,399 --> 02:53:24,000
throughout their career. So, um, it's,

4064
02:53:24,000 --> 02:53:26,080
yeah, really kind of a similar process

4065
02:53:26,080 --> 02:53:28,240
and it's I think it's a lot more

4066
02:53:28,240 --> 02:53:29,760
responsive than we've been in the past

4067
02:53:29,760 --> 02:53:31,680
and aggressive to make sure that we're

4068
02:53:31,680 --> 02:53:34,000
able to recruit and retain employees.

4069
02:53:34,000 --> 02:53:35,600
So, I just wanted to really quickly

4070
02:53:35,600 --> 02:53:37,120
touch on a few other things that we do

4071
02:53:37,120 --> 02:53:38,880
that we consider as part of compensation

4072
02:53:38,880 --> 02:53:41,120
or the employee experience. So, one big

4073
02:53:41,120 --> 02:53:43,600
thing we've tried to emphasize with this

4074
02:53:43,600 --> 02:53:45,359
focus on doing market studies is being

4075
02:53:45,359 --> 02:53:46,880
really transparent with employees and

4076
02:53:46,880 --> 02:53:48,560
departments. So going around to

4077
02:53:48,560 --> 02:53:49,840
departments, sharing with them, you

4078
02:53:49,840 --> 02:53:51,439
know, this is exactly why we're making

4079
02:53:51,439 --> 02:53:54,080
the changes we're making. They can see

4080
02:53:54,080 --> 02:53:55,680
exactly the cities that we're comparing

4081
02:53:55,680 --> 02:53:57,760
to, what their pay ranges are, what ours

4082
02:53:57,760 --> 02:53:59,359
are, so they know that, you know, we're

4083
02:53:59,359 --> 02:54:01,680
being fair and transparent and can

4084
02:54:01,680 --> 02:54:03,279
understand why we make the changes we

4085
02:54:03,279 --> 02:54:05,600
do. Uh we've really also tried to focus

4086
02:54:05,600 --> 02:54:07,279
on career development for employees. So

4087
02:54:07,279 --> 02:54:09,200
this includes uh trainings for our

4088
02:54:09,200 --> 02:54:11,040
employees and supervisors, the crew

4089
02:54:11,040 --> 02:54:13,359
ladders again, certifications and

4090
02:54:13,359 --> 02:54:15,200
opportunities offered through that and

4091
02:54:15,200 --> 02:54:16,880
then providing tuition reimbursement and

4092
02:54:16,880 --> 02:54:19,840
babble scholarships. Uh making a greater

4093
02:54:19,840 --> 02:54:21,680
effort to solicit and address employee

4094
02:54:21,680 --> 02:54:23,760
feedback through our anonymous Babel box

4095
02:54:23,760 --> 02:54:27,040
and employee surveys. Uh enhancing our

4096
02:54:27,040 --> 02:54:28,960
benefits where we can. So this last year

4097
02:54:28,960 --> 02:54:30,640
there we made improvements to our hybrid

4098
02:54:30,640 --> 02:54:33,200
PTO program and also paid leave benefits

4099
02:54:33,200 --> 02:54:34,560
that were really well received by

4100
02:54:34,560 --> 02:54:36,080
employees. And then one thing we're

4101
02:54:36,080 --> 02:54:38,319
really excited about this upcoming few

4102
02:54:38,319 --> 02:54:40,000
months is the employee health center for

4103
02:54:40,000 --> 02:54:41,920
our employees and their families. So

4104
02:54:41,920 --> 02:54:44,240
that will huge for employees and it's

4105
02:54:44,240 --> 02:54:46,399
not part of you know their take-home pay

4106
02:54:46,399 --> 02:54:49,120
but it's a really significant aspect of

4107
02:54:49,120 --> 02:54:52,080
compensation on well-being as well. So

4108
02:54:52,080 --> 02:54:54,080
um I know that was kind of rapid fire

4109
02:54:54,080 --> 02:54:55,760
and it's a lot of information there is

4110
02:54:55,760 --> 02:54:57,680
it is a very big expense. So any

4111
02:54:57,680 --> 02:55:00,160
questions about the process or what

4112
02:55:00,160 --> 02:55:03,840
we're planning to do?

4113
02:55:03,840 --> 02:55:05,359
You are taking care of our people so

4114
02:55:05,359 --> 02:55:05,600
well.

4115
02:55:05,600 --> 02:55:05,840
>> Yeah,

4116
02:55:05,840 --> 02:55:08,560
>> I'm excited about the well.

4117
02:55:08,560 --> 02:55:10,319
>> Yeah,

4118
02:55:10,319 --> 02:55:17,590
it's great. A great awesome

4119
02:55:17,600 --> 02:55:19,920
job.

4120
02:55:19,920 --> 02:55:21,920
>> Right.

4121
02:55:21,920 --> 02:55:25,920
Is that everybody on this on the next?

4122
02:55:25,920 --> 02:55:28,720
Did we cover? Let's see.

4123
02:55:28,720 --> 02:55:33,600
Brand in chat. Carrie J. Okay.

4124
02:55:33,600 --> 02:55:36,319
anything else, right? On 1.2

4125
02:55:36,319 --> 02:55:38,160
probably just need to say real quick

4126
02:55:38,160 --> 02:55:41,920
concerning Carrie and Jennica as you can

4127
02:55:41,920 --> 02:55:43,760
as you've been able to experience even

4128
02:55:43,760 --> 02:55:47,520
today, it it's hard to take a lot of

4129
02:55:47,520 --> 02:55:51,040
financial data and detail and articulate

4130
02:55:51,040 --> 02:55:54,960
it and share it and um and do it in a

4131
02:55:54,960 --> 02:55:56,720
transparent way where everyone can kind

4132
02:55:56,720 --> 02:56:01,520
of understand and digest it. um how

4133
02:56:01,520 --> 02:56:04,319
Carrie and Jennica uh relay our

4134
02:56:04,319 --> 02:56:07,120
compensation to our employees is second

4135
02:56:07,120 --> 02:56:10,160
to none. And so just want to highlight

4136
02:56:10,160 --> 02:56:13,200
that that really has been a big deal in

4137
02:56:13,200 --> 02:56:16,000
helping us

4138
02:56:16,000 --> 02:56:21,279
improve our employees confidence that you council

4139
02:56:21,279 --> 02:56:24,240
do make us

4140
02:56:24,240 --> 02:56:28,720
critical to what we eat.

4141
02:56:28,720 --> 02:56:31,680
in you. Yes, that's

4142
02:56:31,680 --> 02:56:33,760
sometimes all of that can get mysterious

4143
02:56:33,760 --> 02:56:35,520
when you're a new employee. You have all

4144
02:56:35,520 --> 02:56:38,479
this the steps and the this and the that

4145
02:56:38,479 --> 02:56:40,479
and

4146
02:56:40,479 --> 02:56:43,760
made that very clear. Thank you.

4147
02:56:43,760 --> 02:56:45,920
All right.

4148
02:56:45,920 --> 02:56:48,800
Holy arts and here.

4149
02:56:48,800 --> 02:56:50,560
>> Wow. All right.

4150
02:56:50,560 --> 02:56:53,429
>> Have to go big.

4151
02:56:53,439 --> 02:56:53,840
So

4152
02:56:53,840 --> 02:56:55,279
>> what you gave us?

4153
02:56:55,279 --> 02:56:57,040
>> We h we have this

4154
02:56:57,040 --> 02:56:58,720
>> and we will touch on that in a minute.

4155
02:56:58,720 --> 02:56:59,680
>> Oh, is that different?

4156
02:56:59,680 --> 02:57:03,200
>> So this part if you look at the front

4157
02:57:03,200 --> 02:57:05,520
page

4158
02:57:05,520 --> 02:57:06,160
>> yes

4159
02:57:06,160 --> 02:57:07,200
>> document

4160
02:57:07,200 --> 02:57:07,680
>> yes

4161
02:57:07,680 --> 02:57:08,319
>> front page

4162
02:57:08,319 --> 02:57:11,920
>> front document that will be this.

4163
02:57:11,920 --> 02:57:14,960
They're different. I will explain why.

4164
02:57:14,960 --> 02:57:18,720
So what you see here are our many and

4165
02:57:18,720 --> 02:57:21,120
mid- major grants along with our major

4166
02:57:21,120 --> 02:57:22,720
grants.

4167
02:57:22,720 --> 02:57:25,760
So it's the art side,

4168
02:57:25,760 --> 02:57:27,760
not all of the art side, but the part

4169
02:57:27,760 --> 02:57:31,840
where we um ask for applications from

4170
02:57:31,840 --> 02:57:33,680
our different uh organizations

4171
02:57:33,680 --> 02:57:37,439
throughout uh in county.

4172
02:57:37,439 --> 02:57:40,720
What we use this for is when we have our

4173
02:57:40,720 --> 02:57:43,600
meetings with uh each of the applicants

4174
02:57:43,600 --> 02:57:45,120
uh all of the mid and mid- major

4175
02:57:45,120 --> 02:57:48,880
applicants then we we use this as a

4176
02:57:48,880 --> 02:57:52,640
barometer for helping us determine um

4177
02:57:52,640 --> 02:57:55,600
what they've received in the past who

4178
02:57:55,600 --> 02:57:57,600
has applied in the past and what they

4179
02:57:57,600 --> 02:58:01,439
have been awarded in the past.

4180
02:58:01,439 --> 02:58:04,960
This year we also developed uh with the

4181
02:58:04,960 --> 02:58:07,120
help of our council members here that

4182
02:58:07,120 --> 02:58:10,479
are on leaison to the commission uh a

4183
02:58:10,479 --> 02:58:13,680
matrix which we a were able to use in

4184
02:58:13,680 --> 02:58:16,399
helping us determine um based on the

4185
02:58:16,399 --> 02:58:23,840
commission members where they felt like those dollars should go.

4186
02:58:23,840 --> 02:58:26,880
Um you'll notice down at the bottom

4187
02:58:26,880 --> 02:58:28,880
there on the far right side under the

4188
02:58:28,880 --> 02:58:33,279
proposed award that 143,000 right here

4189
02:58:33,279 --> 02:58:36,960
and comparing that to where we had we

4190
02:58:36,960 --> 02:58:40,399
went I went back over the past five

4191
02:58:40,399 --> 02:58:42,160
years

4192
02:58:42,160 --> 02:58:44,880
and identify you'll find this hard to

4193
02:58:44,880 --> 02:58:46,880
believe I'm sure sometimes we award

4194
02:58:46,880 --> 02:58:49,040
people money and they don't actually

4195
02:58:49,040 --> 02:58:52,720
submit to use it. So we had an

4196
02:58:52,720 --> 02:58:55,920
accumulation of unawward or awarded

4197
02:58:55,920 --> 02:58:58,479
money that was never used. So we decided

4198
02:58:58,479 --> 02:59:00,880
that this would be a great year to use

4199
02:59:00,880 --> 02:59:03,120
those funds because they are still

4200
02:59:03,120 --> 02:59:08,080
related to our uh arts side component.

4201
02:59:08,080 --> 02:59:10,399
So we've so that's why you see an

4202
02:59:10,399 --> 02:59:14,000
increase in that particular element.

4203
02:59:14,000 --> 02:59:19,439
Um, also to note on this particular, uh,

4204
02:59:19,439 --> 02:59:21,439
for uh, summary,

4205
02:59:21,439 --> 02:59:23,840
um, the commission, uh, and I just want

4206
02:59:23,840 --> 02:59:26,960
to point it out because, uh, this

4207
02:59:26,960 --> 02:59:30,479
thousand better together item

4208
02:59:30,479 --> 02:59:33,200
that was not part of the commission's

4209
02:59:33,200 --> 02:59:35,359
original

4210
02:59:35,359 --> 02:59:39,600
uh, proposal sub submission. Um, council

4211
02:59:39,600 --> 02:59:41,600
member Mikum here received some

4212
02:59:41,600 --> 02:59:43,359
additional information. So, I'll I'll

4213
02:59:43,359 --> 02:59:45,439
let him maybe talk about that particular

4214
02:59:45,439 --> 02:59:48,479
element as and as to why we included it

4215
02:59:48,479 --> 02:59:50,479
on this spreadsheet.

4216
02:59:50,479 --> 02:59:51,600
>> So, in other words, they didn't fill out

4217
02:59:51,600 --> 02:59:52,399
an application, but

4218
02:59:52,399 --> 02:59:54,560
>> No, they did. They applied. They were

4219
02:59:54,560 --> 02:59:57,200
not able to come to and do a

4220
02:59:57,200 --> 02:59:59,600
presentation during our meetings for

4221
02:59:59,600 --> 03:00:00,399
presentations.

4222
03:00:00,399 --> 03:00:02,080
>> They provided their information offline.

4223
03:00:02,080 --> 03:00:04,080
>> Okay.

4224
03:00:04,080 --> 03:00:06,960
So, our we had a full proposal, but our

4225
03:00:06,960 --> 03:00:09,359
commission wasn't able to hear them real

4226
03:00:09,359 --> 03:00:12,399
fun. I I we just reached out to the

4227
03:00:12,399 --> 03:00:13,920
commission.

4228
03:00:13,920 --> 03:00:15,520
Uh

4229
03:00:15,520 --> 03:00:16,720
>> I just want to acknowledge Dawson

4230
03:00:16,720 --> 03:00:18,399
Richmond who's here. He's one of the

4231
03:00:18,399 --> 03:00:22,880
members of our care advisory commission

4232
03:00:22,880 --> 03:00:27,830
>> who who helped us with this list.

4233
03:00:27,840 --> 03:00:29,840
» Yeah. Come on up. Thank you.

4234
03:00:29,840 --> 03:00:31,439
>> Back to Dawson. It would be great if if

4235
03:00:31,439 --> 03:00:34,080
maybe Brandon if this is a good time for

4236
03:00:34,080 --> 03:00:35,359
him to just talk a little bit about the

4237
03:00:35,359 --> 03:00:38,240
process of how the commission works to

4238
03:00:38,240 --> 03:00:40,399
come up with these numbers under

4239
03:00:40,399 --> 03:00:42,479
address.

4240
03:00:42,479 --> 03:00:45,840
Uh the commission what we did is we uh

4241
03:00:45,840 --> 03:00:48,080
thanks to Trevor Bell um and his uh

4242
03:00:48,080 --> 03:00:51,279
Excel skills we came up with this matrix

4243
03:00:51,279 --> 03:00:54,160
that helped us with um with the

4244
03:00:54,160 --> 03:00:55,920
decisions. What we did is we all had our

4245
03:00:55,920 --> 03:00:58,640
own spreadsheet. Um, everybody had the

4246
03:00:58,640 --> 03:01:01,680
same had the same copy. Um, we all but

4247
03:01:01,680 --> 03:01:03,840
our copies were all our own individual

4248
03:01:03,840 --> 03:01:05,359
copies. What we would do as we were

4249
03:01:05,359 --> 03:01:07,600
listening to the presentations is we

4250
03:01:07,600 --> 03:01:09,840
would go in and we would uh input the

4251
03:01:09,840 --> 03:01:11,359
amount that we thought that they

4252
03:01:11,359 --> 03:01:14,640
deserved and then um all of our

4253
03:01:14,640 --> 03:01:16,319
spreadsheets at the end collected into

4254
03:01:16,319 --> 03:01:17,920
one spreadsheet that showed all the

4255
03:01:17,920 --> 03:01:20,720
averages um what we had all submitted.

4256
03:01:20,720 --> 03:01:24,560
Um, and with that, then we were able to

4257
03:01:24,560 --> 03:01:25,920
kind of get a gauge for how everybody

4258
03:01:25,920 --> 03:01:27,600
else was feeling. And then we would

4259
03:01:27,600 --> 03:01:29,359
discuss if there was if there was a big

4260
03:01:29,359 --> 03:01:30,640
variance, we could see that somebody had

4261
03:01:30,640 --> 03:01:32,479
submitted maybe 1,000, someone had

4262
03:01:32,479 --> 03:01:34,160
submitted 8,000 for one grant, for

4263
03:01:34,160 --> 03:01:36,319
example. Uh, then we would discuss why

4264
03:01:36,319 --> 03:01:38,080
as why we felt that way, and then we

4265
03:01:38,080 --> 03:01:40,880
would come to a decision as a as a as a

4266
03:01:40,880 --> 03:01:42,880
commission. So, I thought the process

4267
03:01:42,880 --> 03:01:44,720
went pretty well, and it was was good.

4268
03:01:44,720 --> 03:01:49,750
We all we all felt good about all the numbers

4269
03:01:49,760 --> 03:01:53,359
» and so it it keep in mind is not a

4270
03:01:53,359 --> 03:01:57,760
requirement to present at to the

4271
03:01:57,760 --> 03:01:59,279
commission.

4272
03:01:59,279 --> 03:02:02,319
Obviously we highly suggest it. Uh it

4273
03:02:02,319 --> 03:02:04,720
helps the commission members uh

4274
03:02:04,720 --> 03:02:07,600
determine those things when they're like

4275
03:02:07,600 --> 03:02:10,319
especially this year with a matrix. Um

4276
03:02:10,319 --> 03:02:15,279
and so um one of the um ways that

4277
03:02:15,279 --> 03:02:17,120
they're able to then make those judgment

4278
03:02:17,120 --> 03:02:20,080
calls is by having that ability with

4279
03:02:20,080 --> 03:02:22,080
presenter there to be able to ask

4280
03:02:22,080 --> 03:02:24,960
questions or get clarity on on that

4281
03:02:24,960 --> 03:02:28,479
organization. So, um I think that

4282
03:02:28,479 --> 03:02:31,439
particular process was was went really

4283
03:02:31,439 --> 03:02:34,000
well and we really appreciated the

4284
03:02:34,000 --> 03:02:36,960
commentary that um everybody had with

4285
03:02:36,960 --> 03:02:39,120
each other while we were in in those ne

4286
03:02:39,120 --> 03:02:41,040
if we'll call negotiations, those

4287
03:02:41,040 --> 03:02:43,760
discussions. Um because you can see, you

4288
03:02:43,760 --> 03:02:46,640
know, we had $333,000

4289
03:02:46,640 --> 03:02:50,160
in ask and and we were only able to

4290
03:02:50,160 --> 03:02:54,160
award aboutund well award $143,000

4291
03:02:54,160 --> 03:02:57,520
based on the amount of money available.

4292
03:02:57,520 --> 03:03:00,640
Um I mentioned better together. They

4293
03:03:00,640 --> 03:03:02,479
were one of the groups that were not

4294
03:03:02,479 --> 03:03:05,760
able to be at to come present. Um the

4295
03:03:05,760 --> 03:03:09,760
individual who is in does that runs the

4296
03:03:09,760 --> 03:03:12,000
honeybaked ham store.

4297
03:03:12,000 --> 03:03:14,640
and he was preparing for their new grand

4298
03:03:14,640 --> 03:03:15,359
reopening.

4299
03:03:15,359 --> 03:03:18,800
>> That's right. So, he was not able to

4300
03:03:18,800 --> 03:03:23,680
come and uh he then um I don't remember

4301
03:03:23,680 --> 03:03:26,560
if he said did he send the stuff to you,

4302
03:03:26,560 --> 03:03:28,240
council member?

4303
03:03:28,240 --> 03:03:31,200
>> So, he sent some information to show

4304
03:03:31,200 --> 03:03:33,120
when they put it on that you see the

4305
03:03:33,120 --> 03:03:36,720
thousands in the prior year. Um he sent

4306
03:03:36,720 --> 03:03:38,479
some information around that. And so

4307
03:03:38,479 --> 03:03:41,840
then um it was we had a discussion and

4308
03:03:41,840 --> 03:03:49,040
then you know council member Gail and council member Mikum have said you

4309
03:03:49,040 --> 03:03:52,240
know I think I think for $1,000

4310
03:03:52,240 --> 03:03:55,359
we can we can go ahead and add them. Um

4311
03:03:55,359 --> 03:03:57,359
and then I don't know were you able to

4312
03:03:57,359 --> 03:03:58,800
get a hold of any of the council members

4313
03:03:58,800 --> 03:04:00,240
besides

4314
03:04:00,240 --> 03:04:01,840
>> Dawson

4315
03:04:01,840 --> 03:04:04,800
responded.

4316
03:04:04,800 --> 03:04:07,359
>> Yeah. So, so that's why you see them on.

4317
03:04:07,359 --> 03:04:12,319
I just wanted to make sure you knew that was the one uh if you will

4318
03:04:12,319 --> 03:04:15,200
exception to the proposal that came out

4319
03:04:15,200 --> 03:04:18,479
of the the advisory commission.

4320
03:04:18,479 --> 03:04:23,040
Um after those we don't and and we've

4321
03:04:23,040 --> 03:04:24,640
had some discussions about some changes

4322
03:04:24,640 --> 03:04:27,600
that we will look at in next year. Um

4323
03:04:27,600 --> 03:04:31,520
but then we also uh have our major award

4324
03:04:31,520 --> 03:04:33,600
group uh entities that are down there at

4325
03:04:33,600 --> 03:04:36,640
the at the bottom. Um the application

4326
03:04:36,640 --> 03:04:41,040
for SIRA that million71 is based on

4327
03:04:41,040 --> 03:04:44,399
their application and based on a maximum

4328
03:04:44,399 --> 03:04:46,240
of 35%

4329
03:04:46,240 --> 03:04:49,600
in relation to their operational um

4330
03:04:49,600 --> 03:04:51,279
expenditures

4331
03:04:51,279 --> 03:04:55,520
um and the Utah Metropolan Ballet and uh

4332
03:04:55,520 --> 03:04:58,640
to be honest they received $25,000 for a

4333
03:04:58,640 --> 03:04:59,760
long period of time. I haven't had a

4334
03:04:59,760 --> 03:05:01,920
chance to go back and verify how long

4335
03:05:01,920 --> 03:05:04,000
but it's been a long time.

4336
03:05:04,000 --> 03:05:06,800
I mean, I was one of the first um

4337
03:05:06,800 --> 03:05:09,600
citizens on the care commission and

4338
03:05:09,600 --> 03:05:12,000
that's about where it was.

4339
03:05:12,000 --> 03:05:14,399
I was on the Yeah, they did get a

4340
03:05:14,399 --> 03:05:18,560
>> How did we determine as 143 for the

4341
03:05:18,560 --> 03:05:20,800
small I'm sorry. Did you want I I

4342
03:05:20,800 --> 03:05:23,279
interrupted. Okay. On the mini and mid-

4343
03:05:23,279 --> 03:05:25,840
major grants, how did we come up with a

4344
03:05:25,840 --> 03:05:30,960
maximum um 443?

4345
03:05:30,960 --> 03:05:36,000
So, um, we usually try to target in the

4346
03:05:36,000 --> 03:05:41,120
120ish neighborhood in the past. And so,

4347
03:05:41,120 --> 03:05:43,680
based on just the volume that we've been

4348
03:05:43,680 --> 03:05:45,600
re particularly, you can see the last

4349
03:05:45,600 --> 03:05:47,680
couple years in particular,

4350
03:05:47,680 --> 03:05:51,279
>> we felt like what can we do to to push

4351
03:05:51,279 --> 03:05:54,399
that dollar a little bit higher? Um, is

4352
03:05:54,399 --> 03:05:56,160
there a way that we can potentially do

4353
03:05:56,160 --> 03:05:59,520
that? Um, it's usually almost reverse

4354
03:05:59,520 --> 03:06:02,640
engineering. So, if we um kind of go to

4355
03:06:02,640 --> 03:06:04,479
that spreadsheet that was handed out to

4356
03:06:04,479 --> 03:06:07,680
you, you can see all of the um awards

4357
03:06:07,680 --> 03:06:10,640
that were on there.

4358
03:06:10,640 --> 03:06:13,359
Then you come down and then I have to

4359
03:06:13,359 --> 03:06:16,080
back into

4360
03:06:16,080 --> 03:06:19,359
what do I think is my estimate of the

4361
03:06:19,359 --> 03:06:21,520
care dollars that we are going to

4362
03:06:21,520 --> 03:06:23,439
receive.

4363
03:06:23,439 --> 03:06:25,359
>> Then we kind of do a reverse

4364
03:06:25,359 --> 03:06:28,560
engineering. we kind of go, okay, we we

4365
03:06:28,560 --> 03:06:31,760
have SIRA and we've generally always

4366
03:06:31,760 --> 03:06:34,640
awarded them the amount that they have

4367
03:06:34,640 --> 03:06:37,600
applied for. I'm back out the

4368
03:06:37,600 --> 03:06:41,359
Metropolitan Ballet and then these other

4369
03:06:41,359 --> 03:06:44,960
items that come from various requests

4370
03:06:44,960 --> 03:06:48,319
from uh our

4371
03:06:48,319 --> 03:06:51,439
recreation andor uh in this case, you

4372
03:06:51,439 --> 03:06:54,960
know, Bryce and his team. Um and then

4373
03:06:54,960 --> 03:06:58,080
that kind of gives us an idea of how

4374
03:06:58,080 --> 03:07:00,880
much if you will is available,

4375
03:07:00,880 --> 03:07:02,000
>> okay,

4376
03:07:02,000 --> 03:07:06,399
>> for those if we were to adjust that

4377
03:07:06,399 --> 03:07:08,479
we would that heart of downtown item.

4378
03:07:08,479 --> 03:07:11,439
You're going gosh 463 437 that's a

4379
03:07:11,439 --> 03:07:15,040
pretty weird number. It's a plug. So

4380
03:07:15,040 --> 03:07:17,279
basically we've said here's where we

4381
03:07:17,279 --> 03:07:20,560
feel comfortable. What do we have left?

4382
03:07:20,560 --> 03:07:21,920
We'll put that towards heart of

4383
03:07:21,920 --> 03:07:23,920
downtown.

4384
03:07:23,920 --> 03:07:27,134
>> I'm offended at plug. I just wouldn't

4385
03:07:27,134 --> 03:07:28,479
[laughter]

4386
03:07:28,479 --> 03:07:31,600
>> that's his plug. But yeah, that's

4387
03:07:31,600 --> 03:07:33,279
>> the goal is to try to get in around

4388
03:07:33,279 --> 03:07:35,359
500,000 as close, you know, best as we

4389
03:07:35,359 --> 03:07:39,840
can. But that's um you will notice,

4390
03:07:39,840 --> 03:07:42,000
so you might ask, so you'll notice, and

4391
03:07:42,000 --> 03:07:44,640
yes, I I do know how to do math and and

4392
03:07:44,640 --> 03:07:48,000
arts and wreck are supposed to be 50/50.

4393
03:07:48,000 --> 03:07:51,120
You'll notice the 1802

4394
03:07:51,120 --> 03:07:56,319
and wreck is not 1802. So you'll recall

4395
03:07:56,319 --> 03:07:58,319
when I mentioned we had those surplus

4396
03:07:58,319 --> 03:08:00,720
unused funds.

4397
03:08:00,720 --> 03:08:03,439
So that's where that difference comes in

4398
03:08:03,439 --> 03:08:07,040
is we are you those funds uh you will

4399
03:08:07,040 --> 03:08:09,760
surplus and re in our reserves. So

4400
03:08:09,760 --> 03:08:11,840
that's why

4401
03:08:11,840 --> 03:08:13,840
our site is receiving if you will an

4402
03:08:13,840 --> 03:08:15,680
additional 50 is because it never got

4403
03:08:15,680 --> 03:08:17,760
used in the first place. Okay.

4404
03:08:17,760 --> 03:08:19,680
>> So, that's why the

4405
03:08:19,680 --> 03:08:21,680
>> on the co-sponsored groups, what's that

4406
03:08:21,680 --> 03:08:24,560
money for? $2,000. What's that going to

4407
03:08:24,560 --> 03:08:25,040
be used for?

4408
03:08:25,040 --> 03:08:26,319
>> Tyler, do you want to talk about the

4409
03:08:26,319 --> 03:08:26,960
co-sponsor?

4410
03:08:26,960 --> 03:08:29,200
>> So, our co-sponsored sports groups,

4411
03:08:29,200 --> 03:08:31,439
we've got like ORM Youth Baseball and

4412
03:08:31,439 --> 03:08:34,240
soccer and and we invest in capital

4413
03:08:34,240 --> 03:08:35,840
improvements to help improve those

4414
03:08:35,840 --> 03:08:38,960
playing surfaces and increase the

4415
03:08:38,960 --> 03:08:41,200
betterments that they play on. So, in

4416
03:08:41,200 --> 03:08:42,560
the past, we've used some of that money

4417
03:08:42,560 --> 03:08:45,600
to buy like the robot turf painter to

4418
03:08:45,600 --> 03:08:47,680
help give them the crisp perfect lines

4419
03:08:47,680 --> 03:08:49,439
on the fields and things like that. So,

4420
03:08:49,439 --> 03:08:50,800
there's a little bit of money that we

4421
03:08:50,800 --> 03:08:53,680
invest into that program every year. Um,

4422
03:08:53,680 --> 03:08:55,920
and that's

4423
03:08:55,920 --> 03:08:56,880
>> pink.

4424
03:08:56,880 --> 03:09:00,479
>> So, what's our percentage art to wreck?

4425
03:09:00,479 --> 03:09:02,160
>> It's technically 50/50.

4426
03:09:02,160 --> 03:09:03,359
>> 5050.

4427
03:09:03,359 --> 03:09:05,840
>> Okay. This year we're good at 50. It was

4428
03:09:05,840 --> 03:09:07,840
on some years we kind of did

4429
03:09:07,840 --> 03:09:09,760
>> we're going to do 64 million but next

4430
03:09:09,760 --> 03:09:11,840
year we're going to do

4431
03:09:11,840 --> 03:09:13,600
>> to your point. Yeah. So that was where

4432
03:09:13,600 --> 03:09:15,920
we got out maybe you got out of balance

4433
03:09:15,920 --> 03:09:18,720
a little bit and so we had to do that a

4434
03:09:18,720 --> 03:09:21,120
little there is that 50,000 is kind of

4435
03:09:21,120 --> 03:09:23,359
that same concept. It's kind of riding

4436
03:09:23,359 --> 03:09:24,800
that ship a little bit.

4437
03:09:24,800 --> 03:09:33,840
>> Okay. Um so and you can see here are the items that we discussed with um our parks and wreck folks um in relation

4438
03:09:33,840 --> 03:09:37,520
to the rec side of the house. Um you

4439
03:09:37,520 --> 03:09:40,000
know uh Lakeside Park the the program

4440
03:09:40,000 --> 03:09:43,279
down there is pretty small for such a a

4441
03:09:43,279 --> 03:09:46,160
facility that gets used pretty heavily.

4442
03:09:46,160 --> 03:09:48,319
So they want to do some pretty serious

4443
03:09:48,319 --> 03:09:51,920
stuff down in that area. Um we haven't

4444
03:09:51,920 --> 03:09:53,600
determined an exact park. That's why it

4445
03:09:53,600 --> 03:09:55,600
just says park, but you know, we're

4446
03:09:55,600 --> 03:09:59,600
looking at a pup track um in relation to

4447
03:09:59,600 --> 03:10:02,880
one of the our parks in the in the city.

4448
03:10:02,880 --> 03:10:06,000
Um also doing I have no idea what an RC

4449
03:10:06,000 --> 03:10:07,760
crawler and pasture course is other than

4450
03:10:07,760 --> 03:10:10,479
it sounds cool. Uh [laughter] down at

4451
03:10:10,479 --> 03:10:12,880
Springwater Park, that's the one down

4452
03:10:12,880 --> 03:10:14,960
across from the water treatment uh

4453
03:10:14,960 --> 03:10:18,240
plant. Um library gardens, that would be

4454
03:10:18,240 --> 03:10:20,160
the park over here in the middle uh

4455
03:10:20,160 --> 03:10:22,399
between them. and then the Bonavville

4456
03:10:22,399 --> 03:10:25,600
sports court. Um, and a couple of other

4457
03:10:25,600 --> 03:10:27,680
the dog park and rainbow bridge which up

4458
03:10:27,680 --> 03:10:30,640
the canyon as well as um doing some

4459
03:10:30,640 --> 03:10:33,279
stuff to the ORM elementary softball uh

4460
03:10:33,279 --> 03:10:34,960
dugouts

4461
03:10:34,960 --> 03:10:38,160
and that's where care currently is. I

4462
03:10:38,160 --> 03:10:39,359
don't know if either of you have any

4463
03:10:39,359 --> 03:10:44,319
comments you want to make. Um, mayor uh,

4464
03:10:44,319 --> 03:10:47,200
one of I mean our by far our most

4465
03:10:47,200 --> 03:10:49,279
consistent bar is Sarah.

4466
03:10:49,279 --> 03:10:49,680
>> Mhm.

4467
03:10:49,680 --> 03:10:51,359
>> And Adam's here.

4468
03:10:51,359 --> 03:10:52,319
>> Oh,

4469
03:10:52,319 --> 03:10:54,960
>> hi Adam. I am so sorry I didn't see you

4470
03:10:54,960 --> 03:10:56,560
there. [laughter] Welcome.

4471
03:10:56,560 --> 03:10:58,560
>> Hi.

4472
03:10:58,560 --> 03:11:00,800
>> As you know, Sarah has been on a tear a

4473
03:11:00,800 --> 03:11:03,680
lot of great things. Uh, the the

4474
03:11:03,680 --> 03:11:05,359
proposed award for Sarah this year was

4475
03:11:05,359 --> 03:11:07,439
about $120,000 more than last year.

4476
03:11:07,439 --> 03:11:10,240
>> Uhhuh. And so I had reached out to Adam

4477
03:11:10,240 --> 03:11:14,800
just to if he wanted to share um some of

4478
03:11:14,800 --> 03:11:16,880
the

4479
03:11:16,880 --> 03:11:19,120
juices for that increase uh with the

4480
03:11:19,120 --> 03:11:21,359
council while we're

4481
03:11:21,359 --> 03:11:22,399
>> if we have time and if you're

4482
03:11:22,399 --> 03:11:22,800
interested.

4483
03:11:22,800 --> 03:11:25,920
>> Okay. Yeah. Yeah. We've got what is that

4484
03:11:25,920 --> 03:11:29,279
by 13 minutes?

4485
03:11:29,279 --> 03:11:30,720
>> You want to take a few minutes?

4486
03:11:30,720 --> 03:11:32,640
>> Well, what you're Yeah. Thank you. Well,

4487
03:11:32,640 --> 03:11:34,720
what you're really seeing there, as you

4488
03:11:34,720 --> 03:11:40,800
know, we you take the full expenses of of Sierra, for example, you take away

4489
03:11:40,800 --> 03:11:43,040
the non-qualifying expenses and you have

4490
03:11:43,040 --> 03:11:46,000
left qualifying expenses and you can ask

4491
03:11:46,000 --> 03:11:48,399
for 35% of that. So, what that increase

4492
03:11:48,399 --> 03:11:50,800
really is showing you is not necessarily

4493
03:11:50,800 --> 03:11:52,720
going forward, but a true picture of

4494
03:11:52,720 --> 03:11:56,000
expenses from last year. And uh and so,

4495
03:11:56,000 --> 03:12:00,319
and as you look at that year over year, you you see that continually

4496
03:12:00,319 --> 03:12:02,720
that continued growth. And I think many

4497
03:12:02,720 --> 03:12:07,040
of you longtime attendees can can can uh

4498
03:12:07,040 --> 03:12:10,479
talk speak to the the quality how it's

4499
03:12:10,479 --> 03:12:12,160
continued to go up and up and up. The

4500
03:12:12,160 --> 03:12:19,040
number of programs continue to go up and up. Our attendance is growing growing. So you know what that

4501
03:12:19,040 --> 03:12:21,600
really is showing you is is an actual

4502
03:12:21,600 --> 03:12:23,120
expense

4503
03:12:23,120 --> 03:12:26,479
uh that that is in a in a qualifying

4504
03:12:26,479 --> 03:12:30,160
area. um when there has been less money,

4505
03:12:30,160 --> 03:12:33,200
you know, historically, um Sarah has to

4506
03:12:33,200 --> 03:12:36,560
not improve in in facilities and rock

4507
03:12:36,560 --> 03:12:38,319
bricks and mortar as much and put that

4508
03:12:38,319 --> 03:12:40,240
towards programming. When there's been

4509
03:12:40,240 --> 03:12:42,319
more money for programming, we we've

4510
03:12:42,319 --> 03:12:44,319
been able to, you know, at the same rate

4511
03:12:44,319 --> 03:12:46,960
of of increasing and accelerating

4512
03:12:46,960 --> 03:12:50,479
programs and offerings and and quality,

4513
03:12:50,479 --> 03:12:52,319
uh we've been able to make many

4514
03:12:52,319 --> 03:12:55,200
improvements to facility as well. So,

4515
03:12:55,200 --> 03:12:56,720
you know, you're you're look you kind of

4516
03:12:56,720 --> 03:12:58,880
have to look at the whole picture of of

4517
03:12:58,880 --> 03:13:01,439
this airplane taking off. And as as we

4518
03:13:01,439 --> 03:13:03,040
continue to do more, we're going to

4519
03:13:03,040 --> 03:13:05,439
continue to qualify for more and and

4520
03:13:05,439 --> 03:13:06,880
you're going to continue to see the

4521
03:13:06,880 --> 03:13:10,399
programs and you know uh attendance, the

4522
03:13:10,399 --> 03:13:12,399
quality of the programs, the quantity of

4523
03:13:12,399 --> 03:13:14,800
the programs and and so forth. So, I

4524
03:13:14,800 --> 03:13:16,000
think that's what you're really looking

4525
03:13:16,000 --> 03:13:18,720
at in that in that number. uh not

4526
03:13:18,720 --> 03:13:20,240
necessarily a dollar for-doll return

4527
03:13:20,240 --> 03:13:23,279
investment going forward um in that

4528
03:13:23,279 --> 03:13:25,520
difference but in what actually happened

4529
03:13:25,520 --> 03:13:28,160
last year is what is the diff difference

4530
03:13:28,160 --> 03:13:30,479
in that number.

4531
03:13:30,479 --> 03:13:31,920
>> Thank you. I apologize. I didn't even

4532
03:13:31,920 --> 03:13:32,640
see you back there.

4533
03:13:32,640 --> 03:13:33,920
>> Oh, I snuck you in.

4534
03:13:33,920 --> 03:13:34,640
>> You were sneaky.

4535
03:13:34,640 --> 03:13:36,720
>> Can I tell you the questions? Oh,

4536
03:13:36,720 --> 03:13:38,479
>> I just want to make a comment about Adam

4537
03:13:38,479 --> 03:13:40,800
if I could. Something that I just

4538
03:13:40,800 --> 03:13:44,399
learned this year. Um, so Adam does an

4539
03:13:44,399 --> 03:13:46,960
amazing job as we all know at the Sarah,

4540
03:13:46,960 --> 03:13:49,439
but I've also learned that he is very

4541
03:13:49,439 --> 03:13:51,920
kind and helpful in offering his

4542
03:13:51,920 --> 03:13:55,120
experience and resources to a lot of the

4543
03:13:55,120 --> 03:13:56,319
other people that are on

4544
03:13:56,319 --> 03:13:57,520
>> there's a list

4545
03:13:57,520 --> 03:13:59,680
>> and uh for instance our friend at

4546
03:13:59,680 --> 03:14:02,160
Honeybaked Ham, you know, Adam has been

4547
03:14:02,160 --> 03:14:05,120
very helpful in helping him get going.

4548
03:14:05,120 --> 03:14:08,560
And so I I just want to say thanks to

4549
03:14:08,560 --> 03:14:10,560
Adam for not only the great work that

4550
03:14:10,560 --> 03:14:13,200
you do as Sira, but the great work that

4551
03:14:13,200 --> 03:14:15,760
you do in the community at large. Lift

4552
03:14:15,760 --> 03:14:17,760
all of us.

4553
03:14:17,760 --> 03:14:19,680
>> Well, I I've talked to Bren about this.

4554
03:14:19,680 --> 03:14:22,160
I I know I'm not technically a city

4555
03:14:22,160 --> 03:14:24,080
person, but I feel like I wake up every

4556
03:14:24,080 --> 03:14:26,239
day with the same goal and aspirations

4557
03:14:26,239 --> 03:14:28,399
that you all have, and that is make him

4558
03:14:28,399 --> 03:14:31,579
better. And and uh and so, you know,

4559
03:14:31,579 --> 03:14:32,479
[clears throat] that's that's what we

4560
03:14:32,479 --> 03:14:36,640
aim to do. And um you know I I I think

4561
03:14:36,640 --> 03:14:38,960
again those of you that attend regularly

4562
03:14:38,960 --> 03:14:45,600
can can say and and maybe speak to the the number of improvements you've

4563
03:14:45,600 --> 03:14:47,600
seen both in facility and in programs

4564
03:14:47,600 --> 03:14:49,680
and and everything and that's directly

4565
03:14:49,680 --> 03:14:51,520
related to the support you give to

4566
03:14:51,520 --> 03:14:57,600
Sarah. So thank you very much and and we greatly appreciate it.

4567
03:14:57,600 --> 03:14:59,760
>> Well we appreciate what you give to our

4568
03:14:59,760 --> 03:15:01,279
community.

4569
03:15:01,279 --> 03:15:04,399
It's amazing.

4570
03:15:04,399 --> 03:15:06,239
All right. Anything else?

4571
03:15:06,239 --> 03:15:08,479
>> I would be remiss if uh as Dawson

4572
03:15:08,479 --> 03:15:10,560
mentioned, if I didn't uh at least show

4573
03:15:10,560 --> 03:15:12,479
my appreciation for Mr. Bell in the back

4574
03:15:12,479 --> 03:15:15,680
here, uh I I would probably have had

4575
03:15:15,680 --> 03:15:18,239
stones thrown at me or people

4576
03:15:18,239 --> 03:15:20,080
significantly rolling their eyes or

4577
03:15:20,080 --> 03:15:23,439
shaking their head was not for Mr. Bell.

4578
03:15:23,439 --> 03:15:25,840
Uh in especially in our in our meetings

4579
03:15:25,840 --> 03:15:28,000
and all of these, you know, getting

4580
03:15:28,000 --> 03:15:31,200
everything, setting everything up.

4581
03:15:31,200 --> 03:15:33,120
Dawson mentioned the SAP spreadsheets

4582
03:15:33,120 --> 03:15:35,040
and those C matrix and everything like

4583
03:15:35,040 --> 03:15:37,439
that. Um, so I just wanted to publicly

4584
03:15:37,439 --> 03:15:39,279
express my appreciation for everything

4585
03:15:39,279 --> 03:15:42,399
he did in this regard as well.

4586
03:15:42,399 --> 03:15:43,600
>> Can I ask

4587
03:15:43,600 --> 03:15:46,000
>> is ourse applications for these groups

4588
03:15:46,000 --> 03:15:49,760
on our transparency portal?

4589
03:15:49,760 --> 03:15:52,080
>> I don't

4590
03:15:52,080 --> 03:15:54,479
do applicants. So So people can learn

4591
03:15:54,479 --> 03:15:56,080
about I think some of these I'd like to

4592
03:15:56,080 --> 03:15:58,080
find out what they're doing and go to

4593
03:15:58,080 --> 03:15:59,840
their events.

4594
03:15:59,840 --> 03:16:01,279
So do they have websites or

4595
03:16:01,279 --> 03:16:02,399
>> I don't even I don't know what the

4596
03:16:02,399 --> 03:16:04,479
transparenc

4597
03:16:04,479 --> 03:16:05,520
I don't know what that means.

4598
03:16:05,520 --> 03:16:15,510
>> We can't talk about the transparency

4599
03:16:15,520 --> 03:16:17,279
» maybe after telling you about that. You

4600
03:16:17,279 --> 03:16:20,630
have to wrestle.

4601
03:16:20,640 --> 03:16:22,160
» Do you think Pete we could advertise

4602
03:16:22,160 --> 03:16:24,720
some of these on social media? Yeah. So

4603
03:16:24,720 --> 03:16:29,190
the arts council uh

4604
03:16:29,200 --> 03:16:32,479
So, if everybody if all of you are okay

4605
03:16:32,479 --> 03:16:35,279
with the um this proposal, then what

4606
03:16:35,279 --> 03:16:37,439
would happen is in our April 28th

4607
03:16:37,439 --> 03:16:39,600
council meeting, we would be then coming

4608
03:16:39,600 --> 03:16:42,560
forth uh basically somewhat reiterate

4609
03:16:42,560 --> 03:16:44,080
showing this exhibit that you just

4610
03:16:44,080 --> 03:16:46,479
received. Um and then you would pass an

4611
03:16:46,479 --> 03:16:49,600
ordinance that makes that makes it part

4612
03:16:49,600 --> 03:16:51,680
of that ordinance uh approval.

4613
03:16:51,680 --> 03:16:53,359
>> Council, if you have any questions or

4614
03:16:53,359 --> 03:16:55,760
anything on that, I contact you.

4615
03:16:55,760 --> 03:16:58,399
>> Yeah, Trevor or myself. either one.

4616
03:16:58,399 --> 03:17:01,279
>> And thank you.

4617
03:17:01,279 --> 03:17:03,279
>> Well, especially thanks to our advisory

4618
03:17:03,279 --> 03:17:04,560
commission. I thought they knocked out.

4619
03:17:04,560 --> 03:17:06,000
>> Thank you. Yes. And your commission.

4620
03:17:06,000 --> 03:17:10,080
It's It's not easy allocating money when

4621
03:17:10,080 --> 03:17:11,920
there's so many more. There's so much

4622
03:17:11,920 --> 03:17:14,560
more need than money available.

4623
03:17:14,560 --> 03:17:16,239
>> For sure. We we wish we could have g

4624
03:17:16,239 --> 03:17:18,640
everybody 100%, but fortunately, it just

4625
03:17:18,640 --> 03:17:20,720
wasn't realistic. But it was it was a

4626
03:17:20,720 --> 03:17:22,399
lot of experience for sure.

4627
03:17:22,399 --> 03:17:23,920
>> Let me just say one more thing before I

4628
03:17:23,920 --> 03:17:25,680
get in my car and take myself for not

4629
03:17:25,680 --> 03:17:27,279
saying it. And I'm sure you've heard

4630
03:17:27,279 --> 03:17:28,960
this with all the many and mid- majors

4631
03:17:28,960 --> 03:17:31,200
as well. I mean, if we do nothing

4632
03:17:31,200 --> 03:17:34,720
different and add one more program, just

4633
03:17:34,720 --> 03:17:36,479
like you've heard for the last how many

4634
03:17:36,479 --> 03:17:39,600
hours, costs are going up dramatically

4635
03:17:39,600 --> 03:17:42,319
and and and it and we've definitely seen

4636
03:17:42,319 --> 03:17:44,239
that in our and it's [clears throat]

4637
03:17:44,239 --> 03:17:45,920
hard to even get an entry- level person

4638
03:17:45,920 --> 03:17:48,160
when In and Out's paying $17 an hour to

4639
03:17:48,160 --> 03:17:49,600
flip the burgers,

4640
03:17:49,600 --> 03:17:51,279
>> you know. So, I mean it anyway, it's

4641
03:17:51,279 --> 03:17:57,040
just it's it's a really tough climate to keep things going at the at the same

4642
03:17:57,040 --> 03:17:58,960
rate. So, anyway, I I think you you

4643
03:17:58,960 --> 03:18:00,080
probably have heard that on many

4644
03:18:00,080 --> 03:18:02,000
occasions, but

4645
03:18:02,000 --> 03:18:04,560
>> I think every agenda item had some some

4646
03:18:04,560 --> 03:18:07,600
iteration of that today. Yes. No, it's

4647
03:18:07,600 --> 03:18:09,760
good to note that in the arts

4648
03:18:09,760 --> 03:18:12,080
>> and and I we don't have any salaries or

4649
03:18:12,080 --> 03:18:14,319
anything in in care. We do have

4650
03:18:14,319 --> 03:18:15,920
independent contractor fees which is

4651
03:18:15,920 --> 03:18:18,319
like concerts and and those kind of fees

4652
03:18:18,319 --> 03:18:20,880
but but I mean even those rates are

4653
03:18:20,880 --> 03:18:22,560
nothing like they were 10 years ago for

4654
03:18:22,560 --> 03:18:24,319
example.

4655
03:18:24,319 --> 03:18:24,960
So

4656
03:18:24,960 --> 03:18:27,680
>> all right is there anything else is that

4657
03:18:27,680 --> 03:18:28,640
I

4658
03:18:28,640 --> 03:18:31,200
>> All right. So I guess do we need a

4659
03:18:31,200 --> 03:18:32,880
motion to adjourn our work session or

4660
03:18:32,880 --> 03:18:34,319
can we just go?

4661
03:18:34,319 --> 03:18:36,560
>> Yeah, you can need a motion.

4662
03:18:36,560 --> 03:18:41,830
>> Normally we just leave. [laughter]

4663
03:18:41,840 --> 03:18:44,000
Okay. seconds.

4664
03:18:44,000 --> 03:18:46,377
>> I was just gonna leave to bug Steve, but

4665
03:18:46,377 --> 03:18:48,790
[laughter]

4666
03:18:48,800 --> 03:18:54,630
» yes, we are ajourned.

4667
03:18:54,640 --> 03:18:57,439
» Okay. Give a stink eye to whoever says

4668
03:18:57,439 --> 03:18:59,200
no. [laughter]

4669
03:18:59,200 --> 03:19:03,920
I vote. All those in favor?