Good evening everyone and welcome. I
call the October 27th special city
council meeting to order. Council member
Martz will not be joining us tonight. He
has an excused absence. This is a
special meeting of the city council to
discuss the 202526
midbian budget adjustment. However, due
to a terrible incident that late last
week, I have asked our police chief to
come to tonight to answer some of the
questions we've been getting about the
city's role in federal immigration
enforcement in Isiqua. And after the
chief's remarks, we'll move into public
comments. So, come on up, Chief Schwan.
Okay. And she's aware.
Council
members and our community, considering
recent news and events, I want to
address directly any concerns or fears
regarding a squat police department
position on the immigration status of
our residents.
Let me very let me be very clear. The
squat police department is here to serve
you regardless of immigration status.
Our policies are not changing. Our
department follows Washington state law
on this matter. Immigration law and
enforcement are the responsibility of
the federal government, not local
police.
The Isiqua Police Department remains
fully committed to serving and
protecting all our members of the
community regardless of immigration
status with fairness, respect, and
integrity. When our officers interact
with residents or visitors, we do not
ask about immigration status.
If someone is arrested, we do not
contact ICE to inform them that any
undocumented person is in custody. And
when someone is released, we provide no
information beyond what is already
publicly available.
If you ever see an incident that seems
suspicious, I urge you to call 911 or
our non-emergency line at 425-837-32000
and press option three to get our
dispatch directly.
from a safe distance. You may take
photos, record, and provide us with the
information such as license plate
numbers, any other information that you
can document and we can re um follow up
on. Our officers are happy to respond,
verify whether individuals claiming to
be federal agents are legitimate, and
ensure that children or others at the
scene are safe.
However, it's important to understand
that local police cannot interfere with
federal agents performing lawful duties.
Doing so could subject to our own
officers to arrest.
That said, if any officer witnesses an
altercation or sees someone in danger,
they are sworn to act and will intervene
to protect life. And that means
everybody's life. For any incidences of
suspected ICE activity in Isiqua,
including the recent incident at the
preschool that drew public attention, I
encourage witnesses to call 911. Our
officers will respond to verify
identities, ensure the safety of
everyone involved.
Following the incident, both the mayor
and I worked quickly to gather and share
accurate information with the family and
the community. We communicated directly
with witnesses and organizations that
provide resources to immigrant families
in Isiqua and also responded directly to
messages from residents who reached out
with questions and concerns.
I've also offered to host an online
forum and community for community
members who wish to learn more about
their rights and how to respond in
situations like this.
I'm open to some questions and thank you
for your time to allow me to address the
group.
>> Yes, Chief, thank you for coming in.
It's an important moment in our
community for sure. So, I thank you for
taking the time to address uh the
council and the audience we have here
tonight. I'm very grateful for our
police department's dedication to
protecting all members of our community,
regardless of immigration status.
Throughout my service as mayor, it was
extremely important to me that we
cultivate and nurture an inclusivity and
inclusive community. One where everyone
feels safe, supported, and valued. The
deportations, including the one that
took place last week in Isqua, are
absolutely horrifying. I'm outraged by
these actions, but as a mayor, I also
owe you the facts. For months now, I've
been working behind the scenes to
understand what we can do as a community
and connect community members with the
resources they need now more than ever.
If you have concerns about your
immigration status or the possibility of
deportation for you or someone you know,
several local organizations may be able
to help. I encourage you to know your
rights and take advantage of many local
resources. is just recently website uh
page that you can visit at
isiquawwah.gov/immigration
resources.
In addition, I understand that there are
urgent needs in our community for
additional resources, especially for
those directly impacted. In response,
tonight I'm recommending that the city
council approve a budget amendment to
allocate up to $50,000 in additional
grant funding to support immigration
services. Our extremely dedicated and
connected human services commission can
best decide how to allocate these
resources locally before December 31st.
And lastly, if there's anyone in the
community with questions, me directly at
mayoriswah.gov.
I'm here to help.
Is here to
Thank you. One
Is it kind of choppy?
>> Yeah.
>> Okay, let's do that.
As part of our special evening, a
special c uh city council meeting this
evening, we are also taking public
comments and so members of the public
may address council at this time in
person or virtually. Those who signed up
in advance to make con comments will be
called on first. And if you're joining
us virtually and would like to make
comments, please raise your virtual hand
or send the host a chat message. If
you've joined by computer or smartphone,
look for the hang icon. And if you're in
the room, please come up to the podium
in the center. There's a button on the
console that you can press to get the
red light on. Then we'll all be able to
hear you. Clerk, has anyone signed up to
speak for general audience comments or
indicated a desire to speak this
evening?
>> Yes.
>> Great. Thank you. So if you are making
comments, you're invited to address the
council regarding matters that are
directly related to Isiqua's programs,
projects, services, or events. Comments
related to polit political campaigns are
not permitted. Please direct comments to
the whole council and not individuals.
And while this is not a question and
answer session, we will contact you to
follow up if needed. When recognized,
unmute your microphone or if you're in
the room, please step up to the lectern.
State your name and address or
relationship to the city. Speak clearly
and pause frequently. And please try to
limit your comments to 5 minutes. If
you're attending virtually and you do
not respond after your name or phone
number is called or your connection is
lost, the meeting will still need to
proceed. You're encouraged to rejoin if
able. Personal attacks, obscene
language, derogatory remarks, and
disruptive behavior will not be
permitted. Public comments, written and
verbal, are important aspect of the
public process, and the city takes
comments seriously. We thank all those
that have come tonight to take time to
address the council. City clerk, can you
please identify the first person who
signed up to speak? Yes, we have 12
speakers tonight. For the sake of time,
I'm going to call up two names. If
you're the second name called, if you
could maybe just stand over to the side
so you're ready when it's your turn so
we can move a little more efficiently.
So the first speaker is James Markart
followed by Rick Shuel or Shewell.
Um first before uh saying anything, I'd
like to thank the council for u the
statements that's made. Um I came here
basically to recount everything that you
guys just said and this makes me feel
glad that the council is thinking about
this and listening to the chatter behind
me. It sounds like I'm not the only one
that's going to be talking about this
tonight. Um, but in regards to what
happened last week, um, as awful as this
was, um, I' I'd like to continue talking
about this, but I'm not here to talk
about how immigration enforcement is
handled in this country. Um, and I know
this was not Isiqua police um, in the
videos that we've seen of what was what
happened. Uh, but I'm here to ask a very
specific question that I think everyone
in our community uh should be thinking
about, should be asking themselves uh
when thinking about what happened last
week. Was what happened yet another
incident of illegal federal use of
public camera systems? On October 17th,
new cameras were activated along Newport
Way to help with drivers speeding in
front of our schools. Less than a week
later, along the route these cameras
were placed, the mother, who is now
separated from her children, was
followed and taken.
There have been documented incidents
with federal agents where federal agents
have illegally access public cameras uh
in Washington state. While I know that
most of these camera systems have dealt
with the Flock brand camera systems, I
strongly doubt this is the only place
where these attempts are happening.
I'd like to ask that the city ensure the
safety of its residents by making sure
our public cameras are not being used
outside of their intended purposes. We
can keep Isiqua residents safe without
contributing to incidents like what
happened last week. Thank you.
>> Thank you very much, James. Um, city
clerk, who's next on the signup list?
>> Next, we have Rick Shewell, followed by
Kristen Lana Balman.
Mayor Paulanne, members of the city
council, my name is Rick Shu. I live at
35 Mount Olympus Drive Southwest. I'm
the pastor of Faith United Methodist
Church serving the communities of Isiqua
and Seamish. I'm here today with clergy
colleagues representing faith
communities in Isiqua and we have four
points of concern that we are hearing
from our community.
First,
we are afraid. I need to let you know
that I am afraid right now. I'm not
afraid of public speaking. I do that
just about every week. And if you don't
have a church or a pastor, I'd love to
have you join faith any Sunday.
>> I'm a Methodist. We don't waste an
opportunity.
No, I am afraid of being judged by the
color of my skin. 20 years ago this
month, when I was 21 years old, I was
beaten up and jailed by a police officer
for an outstanding littering ticket. As
I was being processed, I asked the
intake officer, who could tell that I
had been hurt, if this type of force was
normal for such a small offense. And he
told me with a little bit of remorse in
his voice, that this happened because I
wasn't white. It was the first time that
I felt the sting of an institutionalized
racism. Trust was broken. I thought that
I was safe in my community, and I never
thought that my skin color was enough to
put me in real danger.
I became afraid and I'm afraid today.
My friends and I represent more stories
of fear than we can tell. We cannot tell
those stories because there is no trust.
We know the stories of people taken by
armed men in unmarked cars to
destinations we do not know about. We
have lost a sense of due process. We
have lost the sense of law. We've been
told that people are not being
disappeared here. We've been told that
there are resources available, but we
have no trust that we can access those
resources safely. Am I safe to give my
address here when it's streamed? Am I
safe to speak? Am I safe when I go out
those doors?
The fear is real. Our city and our
community cannot thrive when there is
such fear and we need your help.
Secondly,
this Sunday there is a day of the dead
celebration at the community center in
Isqua. Will you help protect this
celebration and its participants? It is
a day of joy, a day of reunion with lost
ones. It is a day to celebrate the power
of love and life over the power of
death. And I invite you and I invite
everyone to be present to experience the
joy and the richness of this
celebration. protect the joy in our
community.
We need your presence, your solidarity,
and we need your support. [snorts] Your
presence makes a difference. Your
presence can provide safety and can be
the step to restoring trust and
overcoming fear with joy. Please show
up. I'll invite my colleagues to share
our next points. Thank you very much.
>> Thank you. Uh Kristen Lana.
>> Good evening, council members, mayor,
everybody here in the room. I so much
appreciate the opportunity to speak. My
name is Christine Luana Balman. I live
in Isukqua on Front Street and my church
is Our Savior Lutheran Church also on
Front Street.
I looked a little bit on the web page
because I've never been here at council
before. I don't live here for very long,
so I'm pretty new. And I was actually
impressed when the human services
element was formulated in the
comprehensive plan of the city. The city
decided to support and facilitate the
community's basic human needs for food,
clothing, shelter, primary health,
mental health, dental care, and
protection from abuse and neglect. And
the city is doing much to fulfill these
needs of community members. And I want
to thank you for that.
It is clear to me from the documents you
publish and the nonprofits you support
that you have a high awareness of the
community needs and the areas which call
for improvement like mental health
services, housing continuum, culture
pacific services and child care.
Nobody could have known when you
formulated this plan many years ago that
today Isiqua residents need protection
from unlawful arrests by unidentified
uniformed persons in unmarked cars who
we usually call ICE but nobody really
knows as they don't identify themselves.
It might be more to the point to call
them secret police. Now that is a
phenomenon I am familiar with. I hold
two nationalities. I'm American and
German. And I lived on the island of
West Berlin when the wall was still
standing.
I was there as a university student. And
my roommate Cena, she was actually
arrested by the Stazzi, the ministerium
for Ministry for State Security, the
secret police of communist Germany.
She was arrested during a trip to East
Berlin, a day trip. We still don't know
for sure why she was arrested.
But we do know that she spent four weeks
in an East Berlin jail.
I mean, I found out after maybe a week
when her family was notified by West
Berlin government officials uh that
their daughter had been arrested.
I just knew that she didn't come home,
that she didn't come to classes, that,
you know, she was just gone. I had no
idea what had happened to her.
That happened in the 1980s.
So today we learn about the Stazzy rule
of terror in museums and we read about
it in books. But here in the United
States of America, a similar story is
unfolding
right now, right here in front of our
eyes. Unidentified ICE officers are
arresting people right and left on the
streets, in courouses, in schools, at
work, at home. They're taking people of
all ages and health conditions. people
who are citizens or green card holders
or undocumented, it doesn't seem to
matter. The only thing which seems to
matter is that their skin is brown
enough to be identified as Hispanic by
the arresting officer.
Given this unanticipated change in
circumstances in our country and our
city, other needs than those previously
identified in city plans are rapidly
emerging. the need for legal
representation,
the need for basic and visible
solidarity,
the need for temporary parents.
We representatives of local faith
communities are grateful to hear that
you have dedicated $50,000 for
immigration services. And we ask that
you continue to set funds apart for this
purpose and maybe even start a rapid
response fund as other I believe other
East Site cities have done because the
money will be needed quick and it will
be needed in unusual ways and I myself
as a pastor know that it I mean even at
church there's a administrative process
to get funds to flow. I only have one
fund, the pastor's fund, where I can
take money and use, you know, at my own
discretion. And I believe something like
that is what you need, of course, to be
used for the right purposes, but um
please discuss it and talk about it and
make funds available. Thank you so much
for allowing me to speak. I do not take
it for granted.
>> Thank you, Kristen, Lana. Next up, Jen.
And after that, Ken Conigmark.
>> Okay.
>> Hello. Thank you for this opportunity.
My name is Jen Hegedorn and I'm the
pastor at Spirit of Peace United Church
of Christ here in Isiqua. And I stand
with my clergy colleagues and our
congregations and so many people of
conscience who are deeply, deeply
concerned about what unfolded last week
and what is continuing to unfold. You've
heard parts one and two. I'd like to
offer our third and final piece, which
is a plea. A plea to protect the
children.
I live just minutes away from the
Learning Nest preschool. I have a
toddler. I cannot imagine having to kiss
him and hug him and tell him I love him
and say goodbye, not knowing when I'd
get to hold him again.
But so many parents not only have to
imagine this, they have to prepare for
this. As we speak right here in
Isiziqua, parents are making photo
copies of their Americanborn children's
birth certificates and they're tucking
them into their little backpacks in case
they need to prove citizenship.
As we speak, parents are making safety
plans in case they don't make it to
school pickup. and no one knows what's
happened to them. As we speak, they are
deciding whether to send their child to
walk to school alone or to walk with
them, not knowing which is the greater
risk.
I have a congregant who works at Isakqua
Valley Elementary, which is just down
the street from the preschool. And the
day after ICE took our neighbor, she
told me that many of the students just
didn't come to school. They didn't show
up. I hope that you all have watched the
video from the rain cam. I imagine that
you have. The words that haunt me are
the one of the last things the ice agent
says um before leaving. He says, "Rain
check."
Rain check. As in, "I'm coming back for
you." This is what a man with a gun and
a vest says while standing outside of a
preschool just minutes from here. Rain
check.
ICE enforcement and deportations did not
begin with the current administration.
We all know this. But the tactics have
never been more violent physically and
psychologically.
Sensitive locations, churches,
hospitals, schools used to be offlimits,
but now nothing is off limits and no one
is off limits. as citizens are picked up
because of the color of their skin.
Assumed like the ICE agent standing on
that preschool porch assumed the teacher
who came to the door because of the
color of her skin was in his words
illegal.
And that means that a relatively
handsoff response. Refusing to cooperate
with ICE, not asking about immigration
status, connecting to resources. This is
all important. But in this unprecedented
time, it is not enough to protect our
neighbors.
I don't think any of us can fully
comprehend the impact that this is
having on children in our community. I
have a masters in public health from the
University of Washington. And so what I
can tell you is that data proves again
and again and again that experiences of
trauma known in the literature as
adverse childhood experiences aces
have longtime negative impacts on
children health well-being and even
opportunities into adulthood. The
reverberations of this will show up in
the public health data and research in
the lives and stories of so many in the
decades to come. And we cannot say that
we didn't know it was happening. Every
morning, children are walking to school
in the dark, afraid and alone. They're
walking right by that preschool and on
countless streets in our community. As
Christian clergy, I believe our
scripture when it says that what I do to
the least of these, I do to God. At a as
a resident of Isiziqua, I want to know
what my city council will do to protect
them. There are always limits. I know
there are limits on what we can do. Each
of us, I know that many of you are just
as appalled as I am. And I know you
can't unilaterally stop ICE. But we can,
each of us, build layers of protection
around the most vulnerable.
City council members, how can you work
with Isiqua School District to ensure
that all of our children truly have
access equal access to education?
Because with ICE roaming the streets,
they do not. How can you ensure that
their path to school is safe? And how
can you make it more difficult more
difficult for ICE to be in our community
operating in secret because they are
here. They have been here. They are here
now and they have promised to return.
Thank you.
>> Thank you, Jen. That little beep is the
end of five minutes, but you can also
see that when you're up as a speaker as
well. Um, thanks for sharing all of that
information and hopefully we'll be able
to provide some answers to the questions
that you asked as well. Ken,
>> evening. I get to follow three
preachers. I'm going to continue
preaching because this is a moral and
spiritual issue we're faced with. It's
more than just city. It's more than just
politics. It's right and justice. I'm a
West Point graduate who served this
country for 26 years in the uniform
while swearing an oath to defend the
Constitution against all enemies,
foreign and domestic. And I'm appalled
to watch our Constitution get shredded
nowadays and our rights taken away.
And I am thousands of other Isiqua
residents as well as millions across
America are now labeled as Antifa
terrorists, as the enemy within, as
someone to be arrested and put in jail.
What is wrong with this country? There's
something seriously wrong.
I didn't join a Hate America rally. I
joined a love America rally along with
people from nursing homes in wheelchairs
all who care deeply about the wrongness
that's happening in this country.
What has happened and where are we
headed may be the bigger question. We're
on a direct path to authoritarianism.
We have lost our moral moral and
spiritual compass and descended into a
darkness that must be stopped in isqua.
It's heart-wrenching that in my town at
a preschool of all places, a mother was
stripped of her child and hauled to
detention by a modern-day Gestapo. An
agent wearing an automatic weapon across
his chest at the door of a preschool.
Those kids and those teachers were
traumatized for life by that. Is this
what we want?
I know of other Isiqua volunteers who
have to walk children to school back and
forth each day because their parents are
afraid to be seen in public and cannot
go out with their own children.
What have we become? Did we not learn
anything from the terrible history of
slavery, Native American genocide,
Japanese American internment, and the
civil rights movement? These are fellow
humans, not aliens and invaders. And we
must stand up now and call out the
tragic wrongness of all of this. This is
not who we are. We all must join forces
to loudly, boldly proclaim, "Not in my
town." I urge the city to enact all
options to take the strongest stand
against ICE. To educate our community
about what their legal rights are and
what the limitations are on federal
agents. Most importantly, take a strong
public stand for what is right and
loudly and boldly proclaim, "We don't
want this here. Not in Isiqua, not in my
town, not in my country, not in my
world." Thank you.
>> Thank you, Ken. And thank you for your
service as well. Uh, next up, city
clerk.
>> We have Corby Castler followed by Anne
Fletcher.
Good evening, Madame Mayor, council
members, and audience. Um, I've been
here a couple times. I'm Corby Castler.
I'm the executive director of the
Downtown Isqua Association, and I sent
you a letter earlier this afternoon, but
I wanted to make a couple of points
about that letter. Um, the city's cuts
to DIA's funding were much deeper than
the 12% across other nonprofits. Please
reconsider.
Investing in DIA comes with a huge ROI.
And for those of you who don't know, DIA
is the downtown ISco Association.
[snorts] Investing in DIA comes with a
huge ROI. Through the tax credit
incentive program, your investment is 25
cents on the dollar. More important,
those monies stay here. The Main Street
program keeps the tax revenue within
your own community rather than having it
sent back to Olympia.
We ask that you review our request to
make the city council contribution of
120,000 of what essentially is 30,000 on
the general fund given the main street
tax credit incentive program. So for
$120,000 investment really the bottom
line on your general fund is $30,000.
We have an opportunity and a simple
choice. Nowhere else will you get that
kind of ROI. And I really ask that you
really consider the amount of funding
given to DIA. and I thank you for your
attention to this. Thank you so much.
>> Thank you, Corby. City clerk.
>> Yes, we have Annne Fletcher followed by
David Kappler.
Good evening.
It's hard to speak after all of this.
Um, and I have a different subject, but
I am going to go ahead. Um,
I already sent comments to um the
council, written comments, and I'm not
going to go over those. Um, they still
stand. I have a few new uh comments that
I want to make about Metrolex.
Um, first of all, since uh the meeting
on the 29th, uh I have learned a lot
from reading this book called What If We
Get It Right? Visions of Climate
Futures. It's a really great book and I
wish I could buy you all a copy. Maybe I
will. Um and I'd like to just read you a
part of it because
um I just think we need to keep our
perspective. There's so much going on,
but we still need to remember um this
in this book. You'll find no sugar
coating or downplaying of scientific
projections or of the speed and scope of
change required in order to bur the
future where we have a chance to
flourish.
You also won't find wallowing.
We are learning lessons and looking
forward.
Fundamentally changing how we interact
with nature
and with each other certainly will not
be easy.
This transformation
will be messy.
It will require new ideas and
technologies
and ancient ones.
But we can do hard things.
Onward to the glorious mess. The only
way out is through.
After reading that book and I'm
continuing to read it, it's very
positive. It's very realistic. And I
probably am going to come to some future
meetings and read you more paragraphs to
keep it in your mind.
I did learn also at the previous meeting
that many council members at that time
were in favor of finding a way to retain
Metroflex um in the two in 2026.
um and that the city could disengage
from a contract uh if uh if if if they
were given proper notice
and that there could be other sources of
funding to um make the $57,000 extra for
Metroflex in 27 2026.
A significant portion of Metroflex users
are connecting with our transit centers
and business areas and that is really
good for both climate and economic
vitality.
A lowincome housing building in our area
without [clears throat] transit is a big
users of Metroflex and how can we extend
that to others that need it? Youth use
Metroflex to get home from
community-based afterchool services that
are outside the school activity bus
schedule.
And many of our immigrants have used
Metroflex to help them with the uh
getting getting driver's licenses so
they can eventually drive or other
services to integrate into our
community.
Um the cost uh of a trip as presented in
the data last time is no more than an
Uber or a lift and over half the trips
are shared by one or more rider.
If we renew our contract with Metroflex,
they will promote it with our community
and that along with additional community
support will help build our writership
and the cost effectiveness of the
program.
So, at the joint King County uh King
County Library, City of Isiqua
sustainability town hall on October
15th, climate and equity were really
important topics.
So despite our tough budget, what could
be a more deserving example of these two
concepts than retaining Metrlex? Thank
you. Thank you, Anne. Next up, Mr.
Kappler.
>> Good evening, David Kappler. Um I was
amazed at the uh number of people here
and uh the shocking uh topic that uh
they spoke so well to and um but I'm
here originally for Metroflex
not um on in on this other issue. Um in
I'm asking you a little imagination
here. Think of a map of Isiziqua in your
mind and uh start get a red crayon out
and uh color in all the parts of
Isiziqua where transit or walking works
to get people to necessary services.
And um there's going to be still a lot
of white area on that map. Now, some of
those wide areas will be the most
expensive houses in Isiziqua that are
the tops of Talis, tops of um Isizua
Highlands or or top of Squawk Mountain
here. But there's going to be a lot of
people that um don't have the service,
the ability to get to the services that
they need, whether for food, health,
employment, or whatever. Some of those
people are older and and that live in
some of those um areas too that I
mentioned that um maybe do have more
finances and that kind of thing but uh
need some kind of help to get to uh
those services, the medical appointments
and the like. So I just encourage you to
um um restore the money for the
Metroflex program. Thank you.
>> Thank you, city clerk.
>> Next we have a spinner followed by Pat
Martin. Alicia,
do you want to speak tonight? Alicia's
passing. Followed by
Pat Martin. Pat, would you like to speak
>> in the room?
>> I can take it.
>> Uh, we have to sign up.
>> It's okay. We are Martin.
>> Oh, okay.
>> And I was thinking of something I would
like to say. Very short.
>> You have to push it to make it red.
>> She'll come and help. No problem. Seven
years old
>> and you all know everything I don't
know. Okay. But here's something you
need. You need to get you as well as
need to speak louder for me so I can
hear what you've got to say. Okay.
[laughter]
And maybe this could be moved over there
so we can see your faces too. I don't
know. But what I why I got up when you
called Pat Martin was because we don't
have a newspaper anymore in this town.
And that's where I would find the
information about what happened on
Friday. And that's where I would expect
people to write in with their opinions
and not have to come out here at night.
We don't drive at night metro. That'd be
good for us. Uh some transportation. Um
so I would like um the mayor, the
council uh to and I and when I got your
last email, excuse me, ma'am, but I
didn't you know it was all full of a
bunch of other things and then your
messages were in between that I got
yesterday. No, we know that Chris
Hayes's book says we have to catch
people's attention. Send out a clear,
spaced, larger font, interesting,
attention getting email. Let us know
what happens with ICE. Let us know what
we do, what I will you believe, and what
and the phone number that the police
person gave. If you think I could get
that that fast, I could barely hear her.
Okay, we need help with that. Let's see
what we can mark it. Put some flyers.
Well done. Copy it off. Put it in the
library for folks. See what you can do
to get the word out clearly. Okay.
>> Thank you, Pat.
>> Mhm.
>> City clerk. Next up,
>> uh, the next name I have is a little
hard for me to read. Starts with an L.
First name. Second name starts with a K.
Maybe Lesie. Maybe someone who doesn't
want to speak.
And after that, I have Mary and Claire.
Would
you like to make comments?
>> Excuse me.
>> Would you like to make public comment?
>> Yes.
>> My name is Mary and Claire. I live here
in uh I'm a new resident in Isiqua and
I've taken quite an interest in uh what
has been going on here. and um the
incident that happened that so many
people are talking about tonight about
the immigrant that was uh carried off
and her child left behind. I feel real
strongly about that as I've worked with
immigrants for many years when I was in
Seattle and I did not understand what
the officer said about
they are protecting and finding out who
is ICE and I wanted to ask the question
how are the police going about
identifying who's ICE if they don't wear
any kind of identification other than
their camo outfit and their guns.
some with masks and some are not masked.
So, how how are the police maybe I
missed it, maybe I haven't heard, but
how are the police doing uh any
identification of the so-called ICE
agents that are milling about and or I
would say marauding in Isiqua.
>> Thank you.
>> Is there an answer to that?
>> I'm going to have some closing comments
and I'll make sure I answer that
question as best I can.
>> Thanks very much.
>> Thank you, ma'am. Next on the list, city
clerk.
>> So, I have the one name I'm unsure
about, which looks like possibly Lesie.
Other than that, no one has signed up to
speak. We do have about 10 members of
the public with us virtually, but at
this point, none of them have uh raised
their hand.
>> So, I will look around the room as well.
Is there anyone who's here? Come on up
to the microphone and just identify
yourself. That would be great.
>> Good evening. Thank you. I arrived a
little late. My name is Julie Carr. I
live in the Sycamore neighborhood on
Southeast Sycamore Lean. Um, I'm very
grateful for the opportunity to speak.
It's one of the great privileges that we
can any of us come forward. So, thank
you. I wanted to comment on the two main
topics as I see for this meeting
tonight. Um, I do want to say that I
support every way we can increase safety
for our immigrant community members. I
know the Isiqua government has different
jurisdiction
and a different role than the federal
government. Still, I look to you all and
to all of us here tonight
to creatively and courageously do what
we can to make sure children are not
separated from their parents because of
ICE arrests. I want our neighbors here
in Isiqua, not in ICE detention in
Tacoma
or El Salvador, Guantanamo Bay, where
wherever. And I also came with the same
question as a previous speaker about
hearing recent um reporting that um
license plate footage was being um
accessed by ICE. And I would like to
know whether that has happened, is
happening or could happen here in Isqua.
Um I also am deeply um interested in the
Metroflex program and I want to voice my
support for continuing with that. Um
reducing greenhouse gases and traffic
congestion uh is something I I really
want is to continue to prioritize.
Metroflex is easy. It's affordable and
um for those who live here, it's so
innovative and it doesn't have the
stigma of the big buses. Uh I really
think it's something we should build on
and and give more time to. It's used by
those with transportation challenges and
that's really critical. Um this past
winter my parents were unable to use
their car because of some medical
issues. They're in their early 80s. they
live in Isiqua and having Metroflex as
an option for them was amazing. So, I
just want you to know it's really
important. I hope we can keep it going.
Thank you.
>> Thank you, Julia. Is there anyone else
in the room this evening that would like
to make comments? And I'll check with
city clerk. Is there anyone else online?
>> Yes.
>> Great. Thanks,
>> Tara. I'm going to make you a panelist
now.
You should now have the option to unmute
and can choose to turn your video on.
Can you hear me now?
Thumbs up. Anybody?
Um, fantastic. Uh, thank you. Um, just
because nobody else online um was going
to speak, I thought I should say
something. Thank you everyone for being
here tonight. Thank you for allowing us
the space to um to uh voice our concerns
and thank you to everyone who came out
physically and um showed the presence in
concern for all of these issues with our
community. Um I try not to meddle in
city affairs because I know it's a hard
job and
um and so but this was really alarming
to me. I'm a mother. Um, my son went to
to school at Ispaw High School. Um, this
community is incredible and I'm so
grateful to get to be a part of it. Um,
that being said, um, I think I think
about um, one of like my modern heroes
is Tim Schneider who wrote the book on
um,
I can't remember it's like on
authoritarity or on on dictatorship. Um,
but one of the things he always says in
his lectures is don't comply in advance.
And
when I hear when I'm looking for a
strong statement by leadership,
um, and it's and I don't hear it, then
then it's not reassuring. Um, ICS is
unidentified.
They are racial profiling. They are
carving anyone who attempts to hold them
accountable. I think our um the second
speaker tonight talked about her
roommate disappearing.
You know, if if I don't know if any of
us have ever just, you know, maybe had a
bad weekend or something and spent a day
in the slammer.
If you've ever just happened to be in a
facility where you realize that you
can't leave, it's frightening.
The thought of this mother sitting in a
place where she doesn't know what is
happening, where she does not have legal
representation, where she doesn't know
what's what happened to her kid after
she left, um, keeps me up at night
because it can happen to any of us. And
if we don't think that, that is not what
history shows us. Um, our laws matter
too in our state. We are a state. We are
a we are a a federation.
We do not agree with these laws. We They
are They are unclear. The federal laws
are unclear. They're being rewritten. Um
they are still pending. We have an
attorney general. We have a governor. We
have lots of resources. We are a very
intelligent community, which is
something I really love.
I and I don't hear this collective
cohesive,
you know, siding with the people instead
of siding with the people who are
snatching our neighbors off of the
street.
I promise you, if I saw a woman
screaming on the street, I'm not going
to I it's not about a badge.
She's a woman. That's a man. These
tactics are un inhumane
and they will leave the scars that we
heard about tonight. So I'm asking as we
go forward, I mean they are staying in
our community at one of the hotels in
downtown.
They are ICE is among us. They don't
just show they're here every single day
looking for more of our neighbors and we
need to take that very seriously.
Um,
and so I encourage anyone and everyone
to um
to just uh ponder on those words and
everything else we've heard tonight and
think about how we re revisit
the the tactics we've been taking now
and rethink what we are going to be
doing in the future to make our
neighbors safe because this is not going
to decelerate. It is not if we comply it
will not get better. That's not how this
works. So, thank you. Thank you for
letting me speak and thank you for for
your time tonight.
>> Thank you very much, Tara. City clerk,
is there anyone else indicating a desire
to speak?
>> No. Looking around the room, is there
anyone else who would like to address
tonight before I do some summary
comments? Well, I want to thank
everybody who came tonight. This is a
extremely traumatizing time in the
community, and you can hear it in
people's voices. You can hear it in the
language that they use in comparisons to
Nazi Germany and disappearing.
ICE has been in Isiqua since the
President Trump decided that that's what
they are going to do across the country
in order to create terror not only
amongst those that are undocumented but
amongst all community members. Um this
is a really difficult time. I have a
concern with um none of the language
that any of our folks chose to stay
tonight to say how strongly you feel
about this. I think the bigger concern
is some of the language that has been
used by local electeds has given the
impression that we do not have to comply
with um the the laws that we have. All
of my officers have sworn to obey the
law. So they there are no options for
them to start to do different things to
start to fight back against ICE. Their
message is clear. call 911 and let us
know if there are if there is parked
vehicles that are of concern to you that
we can run the license plates on. If you
see activity that's concerning, if it is
really a kidnapping or a disappearance,
not done by ICE, that is a criminal
invest invest uh action that we can
investigate. So, I want to make sure
that we're telling everybody the same
thing. Please call 911. Uh you do not
have to engage. I'm sorry, Tara, but I
would be horrified if you did engage and
were hurt or people around you were
hurt. So, we are not encouraging
residents and community members to get
between somebody that is attempting to
be detained and yourself. I'm not sure
that um that message is getting out
there enough, but we really want you to
call us. I did hear about the distrust
in police services from one of the
ministers that came tonight. He's had an
absolutely abominable experience
himself. This is a time we have to build
up the trust between the resources we do
have, which is our local police
department. The information out there
that has um given the impression that
they don't care, they're cooperating, or
they could do more, is false and
harmful. It is leading people to believe
that if ICE shows up at a school, police
officers can go on and stop a child from
being removed from the school. and it's
not true. So sometimes as mayor you're
trying to find the things and give the
information to the community that they
that can be done and sometimes you're in
this horrible position of saying this is
where the country is at this moment and
it's terrifying and my local police
department cannot do anything different
than what they're currently doing. The
governor is aware of the situation. I
talked with Senator Murray's staff as
well. They are all wanting to tell you
the same message. This is bad. This is
terrible. Call 911. At least the police
department may be able to find details
and information about detention,
verification of whether or not they're
really ICE officers, cuz believe me,
somebody is going to pretend to be an
ICE officer and kidnap somebody. That is
a crime we can investigate. But I just
want you to know that the council, the
mayor, the administration feel awful
about this and want you to have the
facts. And I heard tonight so many
people saying, "What's your action plan?
What are the police going to do
differently?" And I'm going to tell you,
there isn't anything they can do
differently. Hang on one second, please.
We're done. We're done with public
comments. So, there were some questions
today about flop cameras. There were
questions about speed cameras. And I
know that these are with our chief right
now for to get an understanding of
whether any of our data was compromised,
if any of our data was used to help them
find a resident in Isiqua. and we will
get you that information and we will
publicize it with a little more bold
lettering and more succinct messaging
because I hear that you want to hear the
facts but quickly. You want the
information, you want to be able to see
it and you want to hear about it. So
there is questions that I heard about um
uh deportations and um also wanted to uh
reiterate that we do have local agencies
here that provide refugee and immigrant
services and the messaging has been send
them a donation through a website,
volunteer to walk kids to school, to run
errands for people, um provide support
to the agencies that are providing
support directly to immigrants and
refugees. So, it's going to be
disappointing when I come out and the
governor and the, you know, federal
congress uh senators say there isn't
anything we can do until the federal
laws change. This is the state of the
land and it is awful. It is just awful.
I am sorry to have to tell you that that
we will continue on and take any
suggestions you have, answer any of the
questions that you have, but the
community needs to step up and help with
those services that are here and
continue to call 911 every time you see
something that is dangerous. Every time
you have a concern, we have been getting
photos of cars. We have been looking up
the license plates to verify if they're
government vehicles or not. We have not
ever been able to verify a government
vehicle yet from one of those calls, but
we take every single one that calls in
ever since the laws changed in January.
So, um, some of the other items, I know
this is going to be a topic for a while.
We'll be putting out more information as
we get it. It has taken over 3 to four
days even to get all the facts sorted
out as best that we know. So, we will
continue to send information out on
this. And as far as condemnation, we
will condemn it as loudly as everybody
else and so will the federal governments
and so will your governor. Condemnation
is important for the community to hear.
I just wanted to let you know on terms
of the side of action. I we are in a
really terrible position.
Um the other folks who came tonight came
to talk about the original special
business meeting which was on the
budget. We heard about Metroflex. We
also heard a request for local
newspapers again. Um, we heard from one
of our nonprofits about funding in the
budget. We heard from folks about
climate action and making sure we stay
true to our ideals of that. Um,
and I'm not sure if I've missed
everything or I think I I've captured
it. So, I want to thank you for coming
tonight. We are going to take a fivem
minute recess uh before we start with
our budget information because we know
many people here were primarily
interested in this um
horrible incident with the mom at the
daycare and the child. So we'll take a
5minute recess. I'll make myself and
deputy city administrator Andrea
available if you have some questions of
other things that we need to follow up
on. That'd be great. So starting at uh
7:25 we're going to take a fivem minute
break. Thanks.
Tim, I think we're ready to go back on
camera.
>> We are back from our recess and we are
one council member down. The
>> you get him. Okay, [laughter]
give us another minute or two. We need
to get council member Joe.
Yo Joe,
maybe what I will do is just do some
introduction. Um, so in closing uh
audience comments again, I just want to
make sure that the community knows that
they can write to their city council at
any time at city councilwah.gov.
And as we move into the agenda item for
this evening, uh, ID 1922, this is the
202526
midbian budget adjustment. The city
council considered the budget
adjustments at their October 13th
committee of the whole meeting and most
recently at the October 20th council
meeting. The deliberations will continue
tonight. And um, Director Garcia, if you
want to come up, we'll just have you get
ready. So, when Council Member Joe is
here, we'll kick it off. So, we'll have
a few minutes.
Oh, okay. An update. He has uh another
commitment that he has to do right now
and so he will not be joining us for
this part of the presentation. Kristen,
you're on.
>> All right. Thank you, mayor, and good
evening, council. So, as the mayor
mentioned, this is in followup to um a
couple meetings that we had on our
midbanium adjustments. council had asked
for additional information to be brought
forward and that's what I'm here to
cover with you tonight. So, first um I'm
going to do a historical review of our
general fund unrestricted fund balance
looking back to 2020. How has that been
performing over time? Also going to have
some continued discussion on the
proposed amendments that we've discussed
in the the previous two meetings. And
then there's a couple new um policy
items that we want to talk about um in
relation to our general fund reserve
requirement policy and then an idea
about establishing an audit committee.
So no action will be asked uh for count
from council tonight. Uh we're just
seeking council input on the final
adjustments to be brought forward um in
on November 17th and we're also seeking
input on the two policy items. So, some
of the items I want council to think
about as I'm going through the
presentations are um I'm going to be
revisiting some of the budget
adjustments that we've talked about
previously. Are there any items that we
want to add? Are there any items that we
don't want removed? If if I'm presenting
something that we've removed from um the
adjustments, what is our target for
closing the fund balance gap? Is that a
10% 12%? Do we need to get all the way
up to the 15% by the end of the bianium?
And then are there any other areas in
the budget that we might need to focus
on as to reach our target percentage? So
just some questions to think about as we
uh continue our discussion. So I want to
start out the presentation with a
historical review of how our fund
balance has been performing um since
2020. So our um and again this is a just
a general overview and then I'm going to
walk through each of the years in the
next couple of slides. So, our
unrestricted fund balance has decreased
uh 53% between 2020 and 2024.
Uh our ongoing revenue hasn't been
keeping pace with our ongoing expenses.
Um the city through the budget adoption
process and the budget amendment process
has made one-time um one-time and
ongoing investments that did reduce fund
balance. And then there was some sizable
restricted revenue in the general fund
um making it a little bit less
transparent to see how our ongoing
revenue expenditures have been
performing over time. And then the
percent of of fund balance was
calculated on total expenditures meaning
restricted and unrestricted which as
expenditures increased then the
percentage needed for the unrestricted
fund balance would also increase.
So this is just a representation of what
the actual fund um general fund
performance has been over time. So in
2020 our revenue was 50 million. Uh we
did see an uptick in 2021 and 2022 both
from restricted revenue u primarily ARPA
and affordable housing and from
unrestricted revenue. In 2023, uh,
revenue started to slow down and then
revenue in 2024 was 63 million. So, if
we compare our 2020 revenue at 50
million to our 2024 revenue at 63
million, we have 12.5 million in revenue
in 2024 than we had in 2020. Now,
comparing our expenditures in 2020 to
2024, our expenditures increased by 21.5
million. Now, that does include both
unrestricted and restricted revenue, but
that's what I'm talking about when we're
starting to see that our ongoing revenue
isn't quite keeping pace with our
ongoing expenditures. And then our 2020
fund balance was 20 million and and then
in 2024, it was reduced down to 9
million or about 14% of expenditures.
So now I want to walk through um kind of
a little bit more in detail yearbyear on
uh what um actual performance has been.
So starting with the 2021 adopted
budget, we did expect a draw down of our
fund balance. So we did budget for a
draw down of our fund balance.
Subsequent to that, our forecast came
out and showed that the big four revenue
was outperforming our expectations. Um
at this time we also started uh
receiving some restricted revenues. Our
unrestricted fund balance increased by
about three million. So it actually
outperformed budget outperformed our
forecast. Um and that was due to revenue
increases in the Borg for revenue and we
had some under spends on the personnel
side. So our unrestricted fund balance
ended up outperforming both our budget
and forecast. So our fund balance was
increasing.
So again, this is just a 2020 or 2020
and 2021 comparison of what our actual
performance was. So in 2021, our
revenues are 65 million as compared to
50 million in 2020. So again, that
increase is because of both restricted
and unrestricted revenue increases. Our
expenses are 53 million in 2021 as
compared to 46 million in 2020. A lot of
that spending uh was the restricted
revenue. And then our unrestrict
unrestricted fund balance increased from
20 million to 2020 or 22 million and
stayed at that 43% of expenditures. And
again that was because of the big four
revenue increase and the underspend um
in personnel.
So now looking at our 2021 and 2022
actual comparison, our 2022 adopted
budget continued to show a decline in
our fund balance through 2026.
Subsequent to that, our updated forecast
once again showed that our revenue was
outperforming our budget and then an
intentional spendown of our fund balance
happened to pay down a portion of our
2019 bonds in [snorts] 2022.
So in 2022, you can see the uptick in
revenue from 65 million to 67 million.
You also see an uptick in expenditures
both in restricted and the payown of the
debt on the 2019 bonds. So, our
unrestricted fund balance went down
again because we um intentionally paid
down the debt. So, the unrestricted fund
balance went um from 43% to 33%. Um that
was again because the intentional
spendown of the debt, but also um now
you'll see how the increase in
expenditures are affecting our
percentage of fund balance. So, the 64
million was an increase of the 53
million 2021. So as expenditures
increase, the amount required for our
fund balance also increases. And so
that's when we'll talk about later that
we want to um make a policy suggestion
to make sure that we're comparing our
unrestricted um fund balance to
unrestricted expenditures instead of
calculating it on the total because as
those expenditures go up the the more
required in fund balance.
Okay. So now a comparison of 2022 to
2023 actuals. So again, our adopted
budget is still having um showing
concerns of long-term sustainability.
Um but now the forecast is starting to
show that signs that that the sales tax
is slowing down and now revenues are
starting to underperform the forecast.
So the forecast um does show a
significant drop in the percentage of
unrestricted fund balance as compared to
the previous year's forecast. So the
actual fund balance decreased um from
planned spending. Um that's the point in
time where we're starting to restore
staffing levels um from the pandemic
cuts and then made some one-time
investments through the budget and um
budget amendment process.
So looking at revenue, it is down
between 2022 and 2023. That is a
combination of both restricted and
unrestricted revenue. Um expenditures
are up in 2023. Uh we're starting to
spend down our ARPA funding. Uh we're
ending the compensated absences and
planned spending of unrestricted fund
balance. So you can see between 2022 and
2023, our unrestricted ending fund
balance went from 21 million down to 14
million or uh 20%.
So now moving forward to 2023 and 2024
actuals. Uh we're continued spending
down a fund balance. Uh we are making
investments to continue to deliver more
programs and services. Um now though
we've added the ongoing 2023
expenditures when we were storing um
staffing positions and making other
investments. And in 2024 we had the
effects of the balm cyclone. And so the
further uh the fund balance further
reduced by the end of 2024.
So here you'll see that now in 2024 ARPA
is fully spent. And although our revenue
increased from 61 million to 63 million,
you can see um that our expenditures in
2024 was 67 million. Revenues were 63
million. So our expenditures were more
than our revenue. So, our fund balance
declined again from 2023 at 14 million
down to 9 million or 14% in 2024.
So, now I just kind of want to recap
what all of that means. Um, so we
started coming out of the pandemic to uh
build conservative budgets. Coming out
of the pandemic, there was still a lot
lot of uncertainty in the economy. Our
budgets um consistently forecasted a
decline in fund balance. However, in
2021 and 2022, there was an uptick in
revenue um exceeding the budget and
exceeding the forecast combined with an
underst spend in our expenditures. So
that was increasing fund balance in
those years. In 2023, then we started
seeing a slowdown in revenue and then
forecasts were adjusted down and then at
the same time we started to make
one-time and and ongoing investments to
spend down a fund balance. And then we
get to 2024, we have the bond cyclone
impacts to both 2024 and 2025. In 25, we
did have a planned uh spend down and
fund balance. And then the one time and
on ongoing um over the course of the
last few years has spent down the fund
balance. And now we're getting to a
point where even though 2026 is balanced
in terms of ongoing revenue
expenditures, the differential isn't
enough to add back and build up the fund
balance.
Okay. So that was the historical recap.
So now what I want to do is council had
a so council had asked for a historical
look back to show kind of what the fund
balance has been doing over time. Um
council also asked to bring back um what
adjustments could be made to restore our
2026 percentage to the 15%. If you
recall, our original forecast when we
bought brought the budget adjustments
forward was projecting we'd been down to
7%. So that's what I'm going to move
into now for the next part of the
presentation.
Um so our adjusted forecast, which
you'll see in a couple slides. So
there's a couple slides in between um
what I'll talk about now and then I'll
show you the numerical example of how
we're getting there. Um but our adjusted
forecast reflects ending fund balance in
2025 of 9% and 10%. So that did move a
couple of percentage points up from our
original midbian presentation. Um the
proposed adjustments um I did itemize
those. Um they'll be they are reflected
in the forecast and and you'll see those
in a couple slides. Um I did want to
talk about Metroflex. Um there's been a
couple of questions on that and it has
been a a big part of discussions. Um so
in the original adopted budget uh we
budgeted 120,000 for Metroflex. Um I
know there's been some council
discussions about how we want to handle
that in in the midbanium adjustments. So
what you'll see um being brought forward
um reflected and and it's just for
discussion purposes. It's not an
official recommendation, but just for
discussion purposes that we removed the
120,000 from the 2026 budget with the
thought that perhaps we could maybe fund
it um through the TBD fund. And um
you'll see a slide later where I have a
forecast of the TDBD fund so you can see
what the fund balance look like and if
that's something that you want to
entertain. But that's definitely a
question that we'll need to answer
throughout this process on uh what we
want to budget for that. Um also want to
make note that we've had conversations
previously about emergency management
fourth of July and World Cup. Nothing is
currently included in the adopted budget
nor in the midbanium adjustments. So
we'll need to um answer that question.
And then the percentage of unrestricted
fund balance is calculated for the
purposes of the 25 and 26 forecast on
unrestricted expenditures only. So we we
didn't want to do it as we historically
did on total expenditures. We wanted to
try to separate that again as a
mechanism to try to get closer to the
15%.
Um, another item that we hadn't talked
about, but I felt like I u wanted to be
transparent and make note of it is we
did have um about 9.6 million in
proceeds from sales of property. That
money is currently sitting in the
general fund. That has been excluded
from any of the fund balance numbers um
that you're seeing tonight and have seen
previously. um considered that
restricted revenue and so I don't want
to over complicate things but just know
that money is in there and it's not
reflected in these fund balances. And
then another item um under spends we've
as I've talked about previously we've
historically had under spends in the
budget meaning we haven't spent all of
our planned expenditures um resulting in
increased fund balance. So for purposes
of the forecast we didn't anticipate any
under spends. That's not what we um have
been forecasting or seeing from the
departments with one exception. We had
budgeted um for a cola for
non-represented staff. The CPI came in
less than that. So we know that will be
an underspend. So we did reflect it in
our 2026 uh forecast which you'll see in
a little bit. Okay. So this is a summary
of our budget adjustments uh what I
called new spending in our general fund.
So, if we recall in our previous
presentation, we had some previously
approved um adjustments, meaning those
were one-time things that came before
council. They were already approved. We
just need to officially codify it in our
budget amendment. We [snorts] also had
some budget corrections that were not
new spending, but that were moving
budgets that were approved in one fund,
and we just need to move it to the other
fund. So, what this represents is things
that affect the general fund because
that's um primarily what we're talking
about that don't have any sources of
funding with a couple of se exceptions
that I want to talk about. Um so the
30,000 for electric monitoring devices
for the defendants that will actually be
funded by the administrative office of
the court. So that does have a funding
source. So if we remove that item from
the budget adjustments, we remove the
related revenue. So that has a net zero
effect um to the budget. Um there has
been a couple questions on the ARPA fund
closeout. So I do want to talk about
that. We have fully spent ARPA. So that
technically isn't new spending. I just
didn't have another way to categorize it
um within the budget adjustments. But we
have fully spent ARPA. What that means
is we had spent money in the capital
projects fund on a project. That project
came in under what we thought we were
going to spend. So now we had this
$12,000 that we needed to apply in order
to close out the ARPA fundings. So we
just want to move those expenses that
were in the capital project fund to the
general fund um to audit costs which is
an allowable cost and now we can fully
close out ARPA um and we'll be done with
that. So that isn't new spending just
reallocating budget. The other item
that's had a couple questions that I
wanted to talk about are the two um
additional park positions. One of those
would be a maintenance position that
would be funded by the King County levy.
Um, that is a restricted revenue source.
It can only be used for new park
maintenance or park capital items. So,
we can't supplant with like existing
staff or existing items and that will be
funded for a six-year period. The second
position is a uh parks recreation
coordinator. So the idea is that that
position would be focused on bringing
new events in, generating more revenue,
which would offset the cost of the
position.
At the same time, we could reduce some
of our part-time costs, allocate what
was already approved in the budget to
help fund the other portion of that
position. So that that would have a no
net effect um on the budget as well. So
everything else that I haven't talked
about was kind of on the table, if you
will. um to try to make adjustments to
get us back up to the 15%.
>> Hey Kristen, it's okay for questions
now.
>> Of course.
>> Thanks, Council President.
>> Just a quick one on the
>> Thank you. Okay. um on the um King
County parks levy portion. Um you've put
this on a slide with general fund, but
is that are we considering it a
restricted
fund?
>> Um the King County levy technically is a
restricted revenue source. Yes.
>> Okay. So, we're considering expenditures
on that also restricted as well.
>> Correct.
>> Okay. Thanks.
>> Yes. Good question.
Okay for Oh, okay. Mayor,
>> that'd be great, Kristen. Thanks.
>> Okay, thank you.
Okay. So, now that I've kind of outlined
all the other adjustments that are kind
of on the table for consideration,
um this is a proposal that you'll you'll
see numerically in a couple of slides on
um what we tried to adjust to get back
up to the 15%. So, the leave payouts,
we're proposing to take those out of the
adjustments um and absorb those into our
operating uh budgets, hopefully offset
by underspend in other areas. Now, we
know we do have a cola under spend. So,
um that should cover a portion of that.
Uh use the streets fund balance to cover
LED lighting, copper theft, and bomb
cyclone costs. So, what that means is in
the original budget amendments, we had
money going from the general fund to the
streets fund. Then those costs are
actually captured in the streets fund.
So, what we're proposing is removing the
transfer from the general fund and just
having the streets fund um cover those
costs. and they do have um fund balance
to cover that.
And then the affordable housing study uh
removing that that was 150,000 and then
removing the pickerine barn generator
and server relocation.
So those are the expenditure items that
we're planning to and again these these
haven't been approved yet. Um these were
adjustments that were being brought
forward to spend in the next bianium.
So, we're just um indicating that we
would remove those um from the proposed
adjustments. The next item um should say
Oh,
>> do you want to uh the director to finish
the slide or
>> do you want to just finish this slide
and then we'll go to council member
Hall?
>> Absolutely. Yes. Um the next item should
be uh use of public safety sales tax in
2026. I made a typo. It says 25, but um
our uh public safety sales tax doesn't
come online until next year. Um so what
this means is we're proposing to use the
revenue generated from the public safety
sales tax for these items which would
cover um the increased cost of public
defense would cover current existing
costs of salary and benefits and um
money toward the current fleet cost
allocation. So that would be shown as a
revenue ad in the budget adjustments.
>> Thank you Kristen. Council member Hall.
Thank you and thank you very much for
your detailed quick responses to my
email of questions uh earlier today. So
I just want to be really clear though
about so the affordable housing study
you said 150k is that how much we had
budgeted previously for that
>> that's the dollar amount that was
brought forward as a budget adjustment.
>> Okay. And so that would have been two
things right implementing the eco
northwest recommendations and updating
our housing strategy work plan. Is that
how we understand that?
Yes.
>> Yes.
>> Okay.
>> Those are those are one and the same.
>> I just wanted clarity clarity there.
Okay. I I just want to be really clear
because those are not I think to council
one and the same. So this item would is
that right? I mean we've talked
independently about these things being
very different at previous council
conversations. So I just wanted to make
sure that that 150,000
would cover the staff work necessary to
do both those two things. That was my
understanding that it was both of those
things.
>> Okay. I appreciate that clarity.
>> Yes. And thank you for asking that
question. Yes.
>> Okay. I
will continue on. So these are
additional items um for consideration.
Again, Metrflex there has been that has
been reflected as a possible reduction
to the general fund. I think what's up
for um question is whether we want to
keep that in. Do we want to remove it?
Do we want to consider using TBD? Um at
what level, if we do want to fund it, at
what level do we want to fund it? Um
again, emergency management, do we want
to use the TBD? Um do we want to add
that to the general fund? Um how do we
want to handle that in the budget
adjustments as well as the Fourth of
July and the World Cup? Um add to budget
adjustments. uh what funding source
general fund I know in the previous
conversations um we kind of talked about
maybe is that a lodging tax fund. So
again other than metrlex none of those
items have been reflected in the budget
adjustments. So that will be an area
that I I will need guidance on how we
move move forward with um the next round
of um draft adjustments.
Okay. So, I put this in there because I
had alluded that the TBD fund might be a
source for a couple of these items. So,
I just wanted to give council
perspective on what that looked like.
So, I want to start at the top at the
2025 beginning fund balance. I did use
the actual, so the 1.244 million. I
wanted to use the actual fund balance
because it was actually lower than what
was budgeted and so I didn't want the
rest of the forecast to be overstated.
Um, other than that number, all of the
rest of it is what is actually included
in the 2025 and 2026 budget and then
what we have in the CIP going forward.
Um, so in 2027, uh, we plan to issue
some bonds for the Northwest Smamish uh,
road improvement project. And then
you'll see kind of at the bottom that
we're anticipating paying some debt
service on that. Another thing that I uh
want to note that
these are just estimated numbers.
Obviously uh we don't know what the full
cost of the projects will be until we go
out for bid. Um so any decisions that
you make now to use the TBD fund balance
could impact future projects. Um we'll
also start building our new banial
budget next year. likely we'll be
updating our CIP. So there might be
other transportation priorities that
haven't been captured here yet. So I
just want full disclosure that if we if
we do decide to use it now in the budget
uh adjustments for this bianium um even
though fund balance looks looks healthy,
we don't know what those future costs on
the projects that we already have
identified uh will look like. So that
was the purpose of this slide just to
give some context.
And then here's where I'm providing the
detailed um review of the preliminary
forecast in column one for 2025 versus
the updated forecast. So that's where
you see middle of the page uh where
we're removing the general fund um
transfer the street operations and we're
removing the retirement cash outs that
we talked about. And then in the updated
forecast on the very right hand side, um
we're removing um those items to show
you that we've got to 9% in 2025 and up
to 10% in 2026. So just a numerical
representation of what we're proposing
to change in the adjustments. And then
at the top um you'll see kind of the top
middle where we're reflecting the public
safety sales tax revenue of the 262,000
which will cover the increase in public
defense costs and then the 800,000 which
will help support existing costs for um
personnel and fleet.
>> Kristen, can we take a question?
>> We can. Yes,
>> President.
>> Thank you. Just trying to understand
this. I understand the idea of like
Metroflex that was in the budget you're
showing there in the updated forecast as
a negative because you're pulling it out
and moving it to another fund.
Can you
>> go ahead city deputy city administrator?
Uh, I believe what Kristen is showing is
not moving it to another fund, but to
help get to that 10%, we've removed the
funding for 2026.
>> Yes. So, we have the opportunity to talk
about that being in TBD, etc. Correct.
>> But that was something that was in our
adopted budget. That's correct.
>> For something else like the Pickering
Bard emergency generator, that wasn't in
our previous budget.
>> No. No. So the number so if we go from
in the 2026 updated forecast column if
you go down to the unrestricted the 67
million257 number
>> so that includes the adopted budget plus
all of the original amendments that we
had talked about previously. So now what
I'm doing is backing out
>> okay got it
>> some of those items. So they include
some of the ones that you previously
approved already. Um they also include
the park positions that were already
funded. So so that's how does that um
help clarify a little bit
>> toward that idea. If some of those are
in restricted funds, are you also
adjusting the restricted expenditures?
>> Um
yes, for purposes of the restricted, I
believe that's only really representing
affordable housing at this point.
>> Okay. Um,
>> but there's things like this park
expenditures and public safety.
>> Yes, there's there's still some more
work to do in terms of pulling out
restricted. Um, I would have to
understand the dollar amount of the King
County levy. It might not be as material
as like the ARPA or the affordable
housing. Um, that doesn't mean that
we're not tracking it at that level, but
enough to separate it another fund, it
might not warrant that. So, we're we're
still doing that analysis. We wanted to
start with the affordable housing
because that was definitely significant.
>> Okay. And on the public safety sales
tax, you have that under unrestricted
revenue,
but
>> that should be that would be restricted.
Technically, it's actually going to be
its own separate fund.
>> Yeah, exactly what I was going to say.
So you're representing that there as
revenue rather than pulling those things
out of [snorts] expenditures.
>> I for simplicity otherwise we would have
had to shown another slide with the
public safety sales. So we would
actually be pulling expenditures out of
the unrestricted to show the offset in
revenue. So we would have had to have a
whole another representation. So for
simplicity purposes, this will be
offsetting expenditures and those would
all move to a separate fund. Revenue and
expense.
>> Yeah. I'm just trying to think about it.
If we're calculating the percentage of
unrestricted expenditures, those are
technically areas that we are lowering
from
our adopted budget.
>> Yes.
They would be. Yes.
>> Okay. So, can we get an update then of
this slide because that obviously
changes the calculation.
>> So, you want to re just so I'm clear,
you want us to remove from the 67
million the 800,000 that we would apply
the public safety sales tax and move
that to restricted. So, we're
recalculating
>> that and the 262,000.
>> Yes. Okay.
>> Yeah.
>> No, that act that would actually be
correct.
>> Okay. Thanks.
>> Yes. Yeah, we can do that.
>> Um, deputy city administrator, the
Pickering Barn, um, suggested capital
improvements. Is that something that
came out of the bomb cyclone
>> or prior to?
>> It is something that we identified as a
need prior to the bomb cyclone.
Certainly, uh, when we have such natural
disasters, it highlights our need and
desire to build resiliency across our
response infrastructure. Um, so that
that was raised again during the bomb
cycle and that this is a need, but we've
identified that need prior.
>> That's great. Thanks.
>> Uh, Council Member Rejang, um, a couple
things. So, is the amount of money from
sale of properties that we're um,
holding for facilities. Is that in a
totally separate account at this point?
>> No, it's currently within the general
fund, but it's not represented in these
fund balances here at all. Um, we had
been talking about using that money for
the capital facilities for renovations
on IPD and the new city hall. So, I
didn't want to over complicate having
that in here, but it technically is in
the general fund and it would make our
unrestricted fund balance not 6.8
million in 2020. It'd be 9.5 million.
So, again, I I wanted to keep it out of
here so we didn't complicate the
restricted versus unrestricted any more
than it is already.
I guess you know to the points about
should we have separate accounts for
these types of restricted funds. Do you
think that like should we consider
moving that to its own separate account
for
>> I would suggest that we probably move it
to the capital facilities fund because
that appears to be what we're going to
intend to use that money for. So
>> okay
>> that that would be my suggestion to not
have it in the general fund. It should
be in the capital projects fund.
>> Okay. And then on the parks thing. So my
understanding was that Isiqua's
allocation from the parks levy was like
400,000 per year. So do you think that
rises to the level where it should have
its own separate fund?
>> I think that's probably too small
administratively. Um on a the accounting
side it would require a lot of work to
have a a fund of that size. It would
Yeah. And and the auditor's best
practices we should have just as many
funds as as necessary. So I need to try
to balance, you know, audit best
practices to what does it make sense for
us to be able to understand our
financial data and something that's in
the multi-millions that rises to a level
that I think we need better
transparency. Additionally, the
affordable housing does require annual
reporting. So anything that requires
annual reporting, I think it's a lot
more efficient to track that separately.
whereas the King County levy to my
knowledge, excuse me, [clears throat]
doesn't require any annual reporting.
>> Okay, great. Thank you. Super helpful.
>> Thanks, director, if you want to
continue.
>> Okay, thank you.
>> Oh, sorry, we have one more question.
Deputy Council President. Yes,
>> I'm sorry. Um, so, um,
we heard tonight from a number of people
who thought that or at least have the
impression that we are removing Metrolex
and not funding it. And what I heard
from you is that instead we're thinking
we're taking the funds for Metroflex out
of the TBD. Is that correct?
>> That is a question that's on the table
for discussion tonight and okay
>> um that's an area that I would need
direction on how council wants that
reflected in the budget adjustments. So,
as an example, if council chooses to
fund that through the TBD, what that
would mean is I would do um I would
include that in the budget adjustments
as a TBD expenditure and not um and
remove it from the general fund. So,
you'd see a removal in the general fund
and then an add to the TBD fund. Just
logistically, that's how it would be
reflected.
>> Okay. I wanted to be sure that I heard
that correctly because when reading
through the packet and also hearing from
folks in the audience tonight, it uh I
did not see that. I I thought it was
being proposed to completely remove it
from the budget. So, I think we need to
be really clear about exactly what our
plans are for Metroflex and we can talk
about that under deliberation. So,
>> yes, absolutely.
>> I think you're good, director. Okay.
Thank you so much.
>> Okay. Okay, so that kind of concludes
the proposal for the adjustments. Now I
just want to talk about some of the the
policy items that I had alluded to
earlier. So this is a proposal for
language in the financial management
policies just to clean up the reserve
requirement. As I noted, um it's been a
historical practice to calculate the
unrestricted fund balance as a a
percentage of total expenditures. And so
what I would propose is that we just
clean that language up and make sure
that we're only calculating it on
unrestricted. So we're kind of matching
apples to apples. Um in the policy
language, it uses the term I want to
point I want to point out and just in
case there's a question, um we use the
term unassigned. That's an an accounting
term. We kind of internally have been
using restricted versus unrestricted. Um
they mean the same thing. Um unassigned
and unrestricted are the same thing. Um,
I also think we should include in there
a measurement date. So, what that means
is a specific point in time where we're
measuring for compliance to make sure
number one that we're consistent and
we're um staying on track. So, what I
would propose is because we adopt a
bianial budget using the official
measurement date the second year of the
bianium. So when the bianium ends we'll
look at our actual performance and then
do the calculation and measure that
against our policy. We'll still we'll
still measure it during our forecast.
We're still measuring in our budget. I'm
just meaning for the official
measurement date um based on actual
performance and if we're hitting the
target or not.
And then the second item is a a newer
item. Um just the idea about
establishing an audit committee and we
have some proposed functions that we
thought the audit committee would do. Um
that would be I think we're proposing a
council um committee um reviewing the
year uh financial performance and
compliance with policy. So just what I
talked about in the previous policy. So
we would get to that measurement date.
um we would bring that forward to the
committee and let them know whether we
hit the target or if we didn't and how
we want to address that. And then the
committee would participate in the
annual audit process. So attending the
entrance conferences, the exit
conferences, being available to the
auditors, which I know you all are
already available to the auditors, but
it'll just be more intentional. um
having access to them to conduct the
risk assessments and then if you have
any concerns with them then now you have
direct access to communicate that to the
auditors and then anytime that we want
to do updates to the financial
management policies we can talk to the
committee about what that looks like
before it comes to the full council
and then these are some items that I had
brought forward um I just wanted to
remind council just of some of the work
that we're continuing to do so again we
have planned on one of 2026 Six, moving
the affordable housing dollars out of
the general fund. It will be in its own
fund. We've also established the
structure of the public safety sales tax
fund. So when we start receiving those
revenues, they will automatically go
into a new fund. They will not be in the
general fund. We're also performing a
reconciliation of our capital projects
fund to identify any undesated sources
of funding. So, it's historically been
our practice when we budget, if we're
budgeting for projects using REIT money
or mitigation money or general fund
money, we tr make those transfers at the
beginning of the year based on what's
budget. Um, but we haven't um had a
practice of doing ongoing
reconciliations. So, I just want to see
um if there's any projects that maybe
that didn't happen or maybe had grant
funding that we had tended to use other
sources of funding. So there might be
sources of funding that can be uh
refunded either to the general fund or
the rate or mitigation. So we're we're
performing that analysis now. We're
going back to 2021 to perform that
reconciliation. And then I'll let
council know um as soon as I have the
results of that and then continuing
researching funding options for the IPD
renovations and the new city hall. And
we'll be coming back to council early
2026 with some funding options. And we
got some great feedback from we had
those discussions earlier.
And then again I think I shared this
with council but just a reminder then
for the next bianium uh we certainly
want to continue our operational
balancing of ongoing activity. I think
we'll likely have some good discussions
about the fund balance percentage and
how we want to get there as we start
developing that budget. Um always
consider how our one-time budget
additions either one time or ongoing.
how is that impacting not only the
current fund balance but how is that
impacting um future fund balance and
then update our long range financial
plan.
So in terms of timing and next steps we
have two more meetings planned to
continue discussing our midbanium
adjustments. We have our next meeting on
November 10th. So this is where I'd be
seeking council input um on what to
bring back to you November 10th for that
continued discussion. And then November
17th, I believe, is the date that we're
going to continue our public hearing. If
you remember, um, last Monday, we had
the public hearing. We kept that public
hearing open. We'll continue that public
hearing on the 17th, and then, uh,
council will be asked to adopt a budget
ordinance.
So, now is the point in time where I'm
happy to answer any additional
questions, but I would, um, love council
input on what my next step will be.
>> Thank you, director. And also, you've
been with us how long?
>> Um, I I'll be hitting four months, I
think, next week.
>> Shocking. Shocking that you were able to
do that research back that far to tell
this the narrative. That's really quite
exceptional work. So, I want uh council
to look at the questions that are there
and maybe start to jot some notes down
um because these are what will be going
around the table and getting you all to
if you have comments on any of these
bullet points, please provide them and
we'll go with questions first. And I
think it's council member Ray followed
by Council uh Deputy Council President
D. Michelle.
>> Uh thanks. Can we talk just for a brief
second about the last bullet on your um
budget items for consideration, the
Fourth of July World Cup? Um and
particularly what are the restrictions
or considerations relative to the
lodging tax? I mean, I know that um
there is a whole entity that makes
recommendations, but um are what the
ELTAC does recommendations um for our um
approval or do we have um voice? So,
tell me about what we can and can't do
with the lodging tax.
>> So, I can speak generally. Um I don't
know isqua specific pro uh process but
lodging tax can be used for the
promotion of tourism um marketing or
marketing facilities. Um state law does
require that there's a committee that
reviews applications and again I don't
know is specific timing on those
applications but there would be an
application process and then the
committee would um make some funding
recommendations.
>> Deputy city administrator.
>> Good evening. Uh yes, Director Garcia is
correct. Um generally, uh state law
prohibits and guides the use of these
funds um on certain types of
expenditures. So for a Fourth of July
event, for example, that's focused on
Isiqua community celebrations of the
Fourth of July, they likely would not be
eligible for ELTAC funds. Um if we had
events that were more targeting folks
from 50 plus miles away outside of the
county, etc. and encouraging hotel
stays. Those are eligible expenses. So,
in part, it depends on what are we
planning to do with these funds, but it
does make it difficult for us to use
Fourth of July funds um these funds,
ELTAC funds for the Fourth of July and
be compliant with state law. World Cup.
Um, that would that would depend and we
could ask uh we could ask the ELTAC the
lodging tax advisory committee to
consider opening up funding for uh World
Cup promotions and events.
>> Council member Ray, a couple of World
Cup updates. Um, local subscribers of
Fox News, which Fox News Fox Sports,
which will be carrying the games live,
does not require any sort of licensing
fee. And so it's avail it will be
available everywhere. It is available
now in town at restaurants and sports
bars. And there are some local groups
already wanting to come to Eltech
through Visit Isisqua for promotional
activities during that time that would
bring folks into town. So I think you're
going to find that you are going to be
potentially oversubscribed.
>> Yeah, I'm not surprised. And then I
wasn't even sure we'd be eligible. That
was kind of why I I asked the question
was to get that out on the table because
I don't want us kind of kicking around
the idea of that if that's not even
viable. And it I agree with over
subscription. I agree with not being
viable and I agree we're not really
necessarily a decision maker. We're just
another petitioner for the for the
funds.
>> Um so
that third bullet looks more like a
general fund hit to me.
>> Okay.
>> That was where I was going.
>> Got it. uh deputy council president dem
Michelle.
>> So this so I'm following up I had
exactly that question but uh a lot of
the World Cup from what I understand is
going to be a little bit beyond our
control. If for example we have big
crowds coming uh I would presume that
we're going to need more um law
enforcement. We're going to need
security. Uh we're going to need other
things. uh how are we I mean there's
going to be expenses whether we put it
into organizing World Cup or whether
people just come we're going to have
some expenses there. So I'm wondering uh
are we acknowledging the increased need
for for example for security and law
enforcement uh and other personnel if we
have huge crowds coming to Isiqua uh or
lots of people coming to stay here is
that reflected in our budget somewhere?
Andrea, do you want to generally u talk
to that?
>> Thank you, mayor. Um, we are we are
preparing for World Cup and increased uh
folks traveling through Isiqua,
increased stays at our hotels, etc. Um,
there's no major events planned at this
point in Isiqua city limits. Uh, but um,
yes, we acknowledge that this will
require a bit more overtime for our
police. We do budget generally for
overtime, noting that there's always um
there's always some events or need for
it here and there. So, I think
operationally we are preparing for the
event and acknowledge that there will be
more overtime for our police force.
>> Thank you, Council Member Hall.
>> Um I have five more questions. I'm
sorry. Okay. So, I hope that's okay and
but feel free to bounce between others
um if that's So, the first two are
requests for specific numbers like how
much something was would cost and I
didn't think of it when I was emailing
you earlier. So, if you need time to
figure that out and then at our next
touch present that that's fine too. So
the first one was I had noticed I
flipped through the banial budget again
earlier today and the one of the things
that we had budgeted to start doing in
26 was um not updating the human
services strategic plan but um starting
to do the engagement work that we needed
to do to set up in 27 the update to the
human services strategic plan. Do we
know how much we budgeted for that? And
and that's just maybe something we can
look into. Um so I'll just move on from
that. Um the second request then based
on um the clarity that we've received
about the affordable housing study being
kind of incorporated of those two
different actions. Do we know how much
and this might require director Dolly
Wall to you is do we have a sense of
what the proportion of that 150k would
be for staff time to implement the eco
northwest recommendations and to have
conversations here with council as
opposed to updating the housing strategy
work plan. Um
>> I guess I'll take that one and get back
to you as well.
>> Yeah. So perfect. I appreciate that. Um
the other ones are kind of more broad um
use of of money questions. So the first
one was I had noticed for emergency oh
it's this slide for emergency management
um it says use of TBD funds. So is that
specific would that be specific
strategic transportation investments
around emergency management that
we would be doing there?
>> Uh what that specifically refers to and
I think that we've talked with council
about this somewhat in the past uh is
signs for emergency management. So, some
of the things we identified is uh the
desire to communicate with travelers. We
talk about evacuation routes and
evacuation times that we could use a few
more signs to provide realtime
uh information with folks who are using
the roads. It's also possible that we
could use those signs for other
transportation information in
non-emergency times. And so because it
would be transportation related um and
emergency management related, we could
we could use transportation benefit
district funds if it's transportation
related,
>> right? Dual purposes. Okay.
Um the next question I have is about the
change to the um financial policy
language.
>> Um and this is just kind of piggybacking
off of council member Jen over email had
asked about impact to potential impact
to bond rating. Is there any value, and
you can just say, "Zack, no, this is
stupid." Um, [laughter]
is there any value in not updating to
call out unassigned in our financial
policies until we've reached our target?
>> I think as we're calculating right now,
it's actually hurting the percentage
because right now we're calculating on
total expenditures including restricted
and unrestricted. So my intent was to
try to get away where the percentage
would improve with our policy.
>> Okay. So you you've thought through all
these things. Yeah. Okay. That's
>> and it's a good question, council
member. I think
>> I think one thing that besides using an
ending fund balance during an emergency
is that there is always fluctuation in
it depending on when different invoices
for services or major contracts come. So
it does move through the year and I
think you want to be careful to still
allow that. Yeah, that's a good point.
Um, okay, I appreciate that. Then, um,
the last question was what you had said
at the top of the meeting. So, you had
had a a potential, um, proposal for
nonprofit or funding for nonprofits. Is
there
>> any more information that could be
shared on that or is that something the
administration needs input from council
on tonight?
>> Do I do good of the order for that or?
>> Uh, well, also for discussion during
regular business tonight is really
anything pertaining to the budget. So,
what the mayor had um proposed at the
beginning of the meeting and her remarks
for the additional $50,000 in funding
for human services grants that would be
focused on immigration services. That is
part of your considerations tonight. So,
we would like feedback within uh this
this conversation question
>> uh this evening. So, we have Metroflex
emergency management 4th of July, but
also a new item of additional funding.
$50,000 is what the mayor has proposed
for uh uh to add to our human services
grants focused on im immigration
services.
>> Thank you.
>> Thanks. I think council president's
next.
>> Thank you. Um let's see two questions.
Um council member Jen, I think you had
pulled up some data about how much the
King County parks levy uh suggested that
would be about 400,000. What we're
proposing here is
265,000,
but one's going to be covered by
uh additional revenue from events. So,
can you talk me through how whether
we're leaving money on the table or
whether we're allocating that to
anything else?
>> Um, I don't know if we're allocating it.
Um, Director Watling just indicated to
me that the increase would be designated
for the parks maintenance position. Um,
I don't know what the additional uh,
revenue at this time. I would have to
get back to you on that.
>> Okay. Yeah, I would be interested to
know about that because obviously if we
have money coming our way um, being able
to program that within the requirements
>> is a good idea.
>> Yes.
>> Versus not. Um
let's see. Um can you provide us as you
did with the TBD fund um a similar for
the fleet fund? Um one of the proposals
here is to take 300,000 out of the
public safety sales tax um and put it to
the fleet fund. and I just want to
figure out if that's, you know, where we
are on that fund and um whether or not
it's growing, decreasing, etc.
Um and then another question on the
proposed financial policy language. You
note a measurement date of 1231 of the
second year. Um I'm trying to figure out
how we would utilize that. Are you
proposing that as something that we
would look back at and say, did we
achieve that or not? Because I think the
way that we've used the financial policy
15% undesated fund balance idea is when
we are planning our budget and figuring
out if we are within policy metrics. So
then is the idea that we would use it
when we're developing a two-year budget
to look at that end of the second year.
is the idea we would use it in the
middle of a two-year budget when we're
looking at that second year. Can you
talk through
>> the I we would do both. So, as we're
developing the banial budget, we would
definitely want to consider that our
we're budgeting to meet that targeted
percentage. What the policy would be
then is measuring our performance
against the budget. So, how we actually
end the bianium versus what we budgeted.
So, if we budget at 15%. But then at the
end of the benium we actually came in at
10% I think that's valuable information
that we we need to know. So I think
having in the policy that we have a
dedicated time where we're actually
measuring that performance. So we would
do both. We would actually continue to
measure it when we do our quarterly
forecasts just to see okay we're we're
forecasting Q2 what we're going to do
through the end of the year. We could
continue to do all of that. I think it's
there's just value in having a
consistent point in time that we're
measuring our actual performance against
our forecast and against our budget.
>> I'm trying to understand when that would
be almost a forcing function on council
to make adjustments to come into
compliance with the financial policy.
So for so for example um we we will be
in the second year of the bianium in
2026. So if we adopt this policy we will
do a formal evaluation of what our
um performances against policy that will
then inform how we're going to develop
our next banial budget. Because if we're
underperforming now we need to have some
policy discussions about what kind of
services we want to provide. if we want
to generate more revenue. So it's
intended to really inform policy for
future if that makes sense.
>> Okay. I guess I'm again if we adopted
this as is say today and then we're
going to adopt the midbian budget
adjustments
does that force our hand to say that we
have to be in compliance of the 15%.
>> I don't I don't think so. No.
>> Okay. No.
>> Thank you.
Thanks, director. Um, I was going to go
to council member Jen and I'm looking at
council member Joe as well. If you both
want to have any questions before we do
round two, it's great. I'm seeing a no
from council member Joe. Council member
Jen. Um, great. So, I have a quick
question on the uh TBD fund. So, um I'm
curious what the assumptions are for the
Northwest Seamish Road Bonds like term
and interest rate and then do I'm
curious if you have a guess on you know
what the error bars could be like. Could
it actually be like 1.6 six or 1.7
million per year or
>> um I don't have those numbers okay
>> with me that was included in the
assumptions those weren't new
assumptions that we had brought forward
so I would have to go back and see what
those original assumptions were
>> okay
>> council member Jang if I may um these
numbers that you see for the TBD funds
projected out to future years with both
expenses and with revenues are estimates
and so while it's the best information
we have today. So many other factors
come into play that are going to affect
these numbers and could uh provide uh a
significant difference to the numbers
that we see today. For example, the cost
estimates for this project were made
before tariff policy was changed and
tariffs are that policy is still in flux
and can have a heavy bearing. In fact,
we've already seen it have heavy uh
effects on some of our capital projects.
And so we know that as we get closer to
these projects, we continue to update
those cost estimates with the best
available information. So the numbers
that you see there, it's an estimate,
also an estimate on our revenues. It
could be that changes to the economy,
this is a sales tax revenue source,
which means it's a bit more volatile as
far as city revenues go. Uh so while the
TBD
ending fund balance shows $3 to $4
million, we expect that to be very
different uh when we get to future
years, just knowing that costs likely
will increase. Um could be the cost of
the project increases as we get closer
and finalized design, etc. So um it's
the best information we have today, but
we know it's going to change.
>> Cool. Thank you.
Um, keep going.
>> Yeah, I guess my other things were
comments, so I'll hold them to later.
>> Oh, great. Okay. Um, Deputy Council
President, do you have your microphone
up? There we go.
>> Yeah. Just another question on the on
the 4th of July. If it's not in our
budget, I'm going to presume that uh the
city is not going to play any role in
the 250th
anniversary
of the 4th of July. And if that if
that's incorrect, please correct me. Um,
uh, do we have a plan, uh, if we're not
going to expend funds or have the city
take take charge of that event, do we
have other alternative plans for the 4th
of July? Because the 250th anniversary
is sort of a special date. So,
>> is there anyone on the council working
on [laughter] that committee, Council
Member Ray?
>> Well, let me let me say this about that.
>> Okay. Oh,
>> um, it's the semi-quincentennial, just
to get that out there first. Um, yeah, I
mean, the city is working, uh,
diligently and actively on putting
together plans for a multi-event
celebration in the city. It would be
optimal if there was some city funding
available to support some of these
activities, but there's also going to be
some um soliciting of local locals and
fundraising to help support these
activities, too. So, um it's a it's a
public private partnership from my
perspective, but there's there's all
sorts of fun stuff that's being um kind
of um kicked around and uh thought about
and aimed at different uh different
audiences and different age groups and
different ethnicities and really
embracing that welcoming multi-
cultural multiaceted city that we are.
>> Thank you for your work on all of that,
Council Member Ray. It's great. Um,
additional questions.
Okay, I'm not seeing any at this time.
Um, we can move into comments. I just
want to remind everybody that there is
no final action tonight. We're just
looking for direction. And I'm assuming
there'll be two kinds of comments.
General comments about the budget
process itself as well as if you can
provide answers to the the three
questions that Kristen has proposed and
has put up on the screen. So, we can
start going around the table with
general comments or we can start going
around the table answering the
questions. Whatever your preference is.
Uh, Council Member Jen, Council Member
Hall. Um, great. Well, thank you so
much, Director Garcia, for putting all
this together. This is amazing. Um I
guess my overarching comment is that you
know looking at that slide where you
showed the total you know fund balance
unrestricted revenues versus
unrestricted expenditures even after
removing all the things that we you know
that we have been proposed we're still
running a deficit from unrestricted
revenues versus expenditures. I think
it's like, you know, the unrestricted
expenditures are going to be 150k higher
than unrestricted revenues. And given
that we have to be running, if we're
ever going to get back up to, you know,
15%
uh of fund balance, we're going to have
to run surpluses in one way or another.
And so I think that concerns me. I think
in terms of you know the target for
closing fund balance gap this bianium I
think for me it's more just like are if
we continue what we're doing now are we
going to be on the right track and given
that you know our unrest you know just
given where we are with limitations on
raising revenue and all that we're not
quite there so it makes me feel a little
bit um uncomfortable just because you
know I think at least for me personally
I think the absolute latest that I would
want us to get to of that 15% is the end
of the next benium which is 2028 and so
I would you know if we spread if we look
and okay we spread that amount over like
three years what is the amount that we
need to get to by the end of next year
so that we can you know kind of linearly
go in 26 and 27 or I guess it would be
27 and 28 um cuz I think you know the
more I I don't want to like keep kicking
the can down the road and risk having
our uh bond rating lowered which could
be really bad. Um, council member Jen,
I'm going to take that as a question as
well because I think there is a
financial strategy that the director has
done and it was not to make you make the
leap all at once just because of the
amount of cuts that you would have to
do. Plus, there are things that the
council wants to consider adding and
those mean more cuts. So I think um if
uh the director could provide for the
council sort of the overall strategy of
why she selected the level and maybe
there's a quick answer tonight. I don't
know but that's a that's a good
question. Okay.
>> Yeah. The overall strategy I was trying
to focus on
not looking at cutting current services.
My strategy was just looking at what had
been brought forward to add to the
budget and start there. Um, knowing that
we've been in a fund balance decline for
the past 5 years, I think it would be a
huge step to try to rectify that by the
end of the next year. Um, that's one of
the reasons why I want to start updating
the financial plan because I think these
questions will be answered and we can
develop um, a longer term strategy to
get to the 15% by the next bianium and
that that update to the financial plan
will show how we'll we'll do that.
>> Okay. And I will go to the deputy city
minister next, but I just wanted to add
for those that have been serving through
multiple terms. Um, for me, this is my
12th year. We've seen this coming. This
is the structural deficit. This is when
you are spending more than you're
bringing in and your tools are no longer
there to change things. So, it's a
painful time and not great answers of
what we can do. Deputy City
Administrator.
>> Thank you, Mayor. I think I just really
wanted to underscore what you just said,
which is we anticipate this to be a
difficult budget process ahead of us uh
as we address the structural deficit uh
as we get back to that 15%. Um, so I
think while we have some strategies to
do that, we look forward to your
feedback tonight and future discussions
with council in 27 as we create the 2728
budget. And we do anticipate uh some
more expenditure cuts and for it to be
difficult process.
>> So council member Jang um along with
your comment, if you had more general
comments, great. Did you want to go
through your feedback to them on the
proposed three questions as well?
Yeah, I think um I guess you know in
terms of the final adjustments, I think
if everyone else agrees that we
shouldn't look into funding into cutting
current services at all, then that's
probably fine. But I would be curious to
see if there's any other areas we might
consider cutting current services. Um
you know, just as another option that's
on the table. Um, and then I'm
supportive of the proposed update to the
reserve policy as well as the proposal
to establish the audit committee uh,
audit committee and I would be
interested in joining.
>> I was just going to say, are you putting
your hand up?
>> Yes, you are. Okay, that is great. Thank
you, Council Member Joe.
[laughter]
>> Great introduction. Thank you.
>> Thank you, director, for all of your
hard work this evening. Appreciate that.
um just to answer a few of the
questions. Uh we used to have a a budget
committee that that would meet once a
month and uh they always put the new guy
on there. So I was on there in 2000 I
think it was a very exciting committee
to be on because you get to look at all
the different categories, the different
columns and see where you are with
things. So, I think it's a good idea to
have that um reinstalled as a way for us
to monitor where the budget is going and
then to have um some people that have
been tagged with the knowledge and
tagged with the burden or uh honor of
going to the audit committee meeting as
well uh to um to give their um feedback
and they really would have a good
understanding what's going on with that.
Um, I do believe the proposed update to
the reserve policy is is solid. It's a
good idea for us to kind of hammer that
down a little bit more. I like the
language in there that is more um, you
know, we shall um, the the general fund
may never fall below 15 of operating
expenditures unless authorized by city
council. Um, seems to be uh, very little
room for us to wiggle around. And I
think that's a good idea because we want
to make sure that we are um staying true
to ourselves on that particular uh topic
along the way. Um I don't have any other
items that I would like to add. I
understand it's a tough budget year. Um
the um target that I would see for the
closing fund balance to gap um would be
more of a progressive one perhaps to go
maybe 12% this year with the goal of
going 15 in the next budget. Um I I just
don't want us to um put that fund
balance up really high while at the same
time having to to cut a lot of programs
that we might want to might want to
keep. But I'll leave that to my
colleagues to consider as they go
forward as well. But overall, thank you
so much for your hard work on this and I
can't believe you've only been with
you've only been with us for four
months. Thank you.
>> It's pretty amazing. Thank you, Council
Member Joe, Council Member Hall.
>> Yeah, thanks. Uh, so I'll just go down
the list. So, items to add. Um, I would
definitely support um the proposal you
mentioned earlier about increasing human
services grant funding for local
nonprofits, uh, supporting our immigrant
community. So, I'm sure we'll have more
conversation about um that at future
meetings. Um items to avoid removing. Um
I'll start with Metroflex first. I am
happy I was really concerned about what
the outlook potentially of the
transportation benefit district kind of
fund um forecast would look like. I am
happy to see well I'll just say it's
much healthier than I thought with the
caveats that were put in place earlier
and and especially even with the
assumptions of um dedicating uh debt
service to pay down um bonding for
Northwest Samish Road and kind of some
of the other general expenditures that
were in there. Of course it being one of
the other major things that we were
[clears throat and cough]
um planning for that fund um since its
inception. Um so u personally I would
feel comfortable using um this fund but
I think there are three distinct
discussions here that I want to get into
with regard to TBD and um keep wanting
to say multiflex instead of metrlex
metrlex.
>> One I think is um for council comfort
level of using TBD on metrlex. Second is
how we use TBD funding best or
strategically in uh the future
recognizing like was said earlier costs
are going to shift tariffs I hadn't even
thought about until you and I had spoke
about this and then also just the
everchanging landscape of cost of
materials and labor um over time and
then also our as a council our
priorities have kind of changed in the
transportation space too lately um we've
had a much more active renewed
conversation around north South
transportation and what we what can we
really do to address what the community
tells us time and time again is number
one. Um we've heard in committee that we
want to be quicker on uh IT
implementation and how can we deploy
these technologies quicker. We have a
lot of large capital projects that are
huge priorities. Northwest Samish road
that dang retaining wall you know lots
of things right. So while I think TBD
funding makes sense for Metroflex for
right now, I think council should have
that broader discussion about future
priorities and kind of strategic
direction of the fund uh in the future
and then make sure we also um learn from
our mistake, make sure we allocate staff
resources too uh in the budget to be
able to have that discussion and I think
it's going to be very timely next year
with CIP coming up anyways. So those are
kind of two distinct conversations. The
third one then kind of goes back to
100%.
>> So how when you say add resources, are
you wanting to add that reser resource
to this adjustment so that the staff is
on board for next year for those
conversations because if you don't add
it, they still won't be here.
>> No, but perhaps it'll make more sense
when I finish my comments because I
think some of this starts with us kind
of setting the strategic tone of as a
council having policy discuss.
>> It's not a specific ask.
>> Yeah. And maybe I'll put a pin in that
and come back to it at the end too
because that's I think a a good point
that we want to make sure we don't lose.
So I think kind of the third distinct
thing here is going back to our last
meeting around goals and outcomes for um
Metrolex in particular. Um and so my
suggestion would be and maybe this gets
folded into that scope of work what you
had just mentioned before having staff
in place to have um um uh details on
proposals and stuff like that. I would
suggest maybe mobility and
infrastructure they have a few touches
in the new year to take a swing first at
updating okay what specific problem are
we trying to solve with uh with the
program. Um what does success look like
spec specifically and then what are the
full range of alternatives that are
available to us? Um so by the time this
new contract ends we know whether or not
one we've achieved what we want to
achieve and then number two if not we
have a clear idea of what to try next.
>> So let me go to deputy city
administrator for a second. Does that
require staff resources in 2026?
>> Uh, yes.
>> Anyway, let's put a pin in it again.
>> Yeah. Well, let's Yeah, let's put a pin
in that and tease out what would require
staff resources, too, because I think
maybe like the what are the alternatives
certainly would require um staff
resources, but I think maybe saying
what's what do we want success to look
like as a policy level? what problem are
we trying to solve at a policy level?
Those are things I think council and
committee can
>> still likely a policy conversation that
is not allocated in the current work
plan unless there's a body. So I think I
think that's worth sussing out, but
let's go through all of your points.
>> Yeah. Okay. Um
All right. Well, anyway, so those are
kind of the three things in my head for
Metroflex. Okay. using it now. Let's
think about how to use those funds
strategically in the future and also
goals and outcomes around um metrlex. Um
the next thing on my mind to avoid
removing um and we're going to wait on
more information so um this isn't a full
fully formed thought yet, but is the eco
northwest implementation. So, this was a
top priority of the council at our
retreat this summer. Um, which I think
was like the first time that council and
you had interactions around budget and
stuff like that too, going back to that
meeting. And then we just recently had
the community planning and development
kind of rep prioritization of their
current work plan discussion too. And
this also rose as a top priority there.
Um, so that's why I asked about kind of
the breakdown between
the housing strategy work plan and
implementation of this. So, I look
forward to seeing that number at our
next budget touch. Um, so we can at
least consider what it would look like
to include that. Of course, that's also
going to be a trade-off discussion. So,
I'll just acknowledge that as well. Um,
so those are the items on my mind for
avoid removing for target for closing uh
the fund balance gap. Um, I kind of
agree. I don't think it's realistic to
hit the 15% mark by the end of this
bienium. Um, supportive of maybe seeing
as close as we can get to that 12%
target. I don't necessarily know what
the delta is between where we are and
12% in terms of real dollars though. Um
so I but but I think recognizing it's
going to take some time. We've
identified a problem midbenium with how
we accounted for restricted and
unrestricted. Um and I think we need a
ramp going into the next banium. It
sounds like that's kind of the plan that
you're already thinking through right
now and what some of the other council
members are are supporting. So that's
certainly where my mind is right now,
especially because I feel as if staff
has gone through the exercise of trying
to find cost saving cost savings here at
the city of Isqua in several budgets now
over the years. And so um we are already
running kind of comparatively lean um
areas of focus to target for reaching um
the target. Um this is kind of difficult
u for me to be able to say oh you should
look here to find cost savings. I think
um my mind my instinct is to say avoid
as best as possible cuts or cost savings
to public safety and human services just
given the kind of scale of the moment
that we're in right now. Um and
potentially look at what are our
one-time capital costs. Um you had
mentioned capital underspend. These
kinds of things that maybe we could
identify that um can help us save money
in general fund. Um, and then the last
thing was just new financial policy
language. I think that looks good to me.
I was also thinking about, well, if
we're going to stand up a new committee,
um, does it make sense to have other
things within the charter of that
committee? I like us all to be in the
weeds on the kind of budget discussions
though. But perhaps I'll just throw it
to the administration. If you think
there's a particular need that should
show up in a committee um, in addition
to audit, maybe that's something the
council considers as well. But
otherwise, I think that language looks
good. And those are my comments.
>> Great. Council member Ray,
>> oh, so much to say. Um,
we've been really fortunate in the
recent past be in a period of revenue
growth. Um, and that's over and we are
seeing uh sales tax flatten out and we
are clearly seeing the structural
deficit that we knew would happen with
property tax. And so we have difficult
difficult times ahead. And I say this
because I don't think it is smart to
say, "Well, let's just ease back into
getting to the 15%." Because you'll
never get there. I guarantee you will
never get there in the current uh
financial situation you were in. Um um
you are going to have declining revenues
relative to your expenses. Just no new
services, no new anything just because
that your ability to keep up with
inflation is uh upside down. So,
you can kick the can as long as you want
to kick the can, but at some point it's
going to be zero. Um, and so you got to
say, what am I not going to do? And
we're not good at that. Matter of fact,
we're really bad at that. So, we're
going to have to figure out how to say
no to stuff. So, we've been able to
leverage some uh one-time kind of tax
increases. So, we're leveraging TBD. I
think if we're going to include uh
continue Metroflex, it needs to be a TD
TBD initiative, but not at the expense
of not doing the the transportation
related work that we have committed to
such as South Lake Seamish,
um not its
>> and a number of other initiatives. Um we
have an opportunity with the public
safety uh sales tax and I'll just you
know put it out there. it that money is
fungeible. And so what we're going to do
is displace um some general fund
expenditures with uh revenue from that
source and that will keep our general
fund afloat for a little bit longer, but
it's a one-time thing. So it's it's um
it's really time for discipline. And
when we wrote the last update, the last
couple of updates to the financial
policy, um I was saying uh 15 was too
low of a a target. 15 is too low of a
target. And if you read the language, it
says the target is 15 to 20 with a floor
of 15, not a oh somewhere around that.
And that's by design to focus on being
disciplined about not spending money
that you don't have because these are
really risky and uncertain times. And
that 15% oh what is it? Seven is our
shock absorber. That's what helps us,
you know, deal with the ups and downs in
these uncertain times. And I'm very
concerned that if we like, oh, you know,
I'm just going to take from my reserve
fund at home because I want to go on
that really great uh vacation or I I
need to do something that's at all
discretionary. Um, that's kind of bad
management at my personal funds. Um, and
then I'm going to need a new washer and
I'm not going to be able to afford the
new washer and it's it's not a
non-discretionary thing. So, um, I worry
about that a lot. Do you have a request
in there? Would you like to see what
kind of cuts would come to get to 15%.
>> I would love to see what kind of cuts
would come to get to 15% um at the
midbian. That would be my my desire, but
definitely by the end of the bienium
that we know how we're going to get to
15 by the end of the bienium to get in
compliance with the policy. And just a
question for um deputy administrator and
finance director. Is that information
that we have available for them prior to
their next meeting where they could see
what um cut round two cuts would look
like in order to get to 15% faster.
>> Uh Mayor Pauly, we seek direction from
council this evening about um where they
would like us to target. And so based we
don't have that information today. We're
looking for direction from council. Is
10% is it 12? Is it
>> okay
>> 15? My microphone's kind of cut cutting
out.
>> They're being weird tonight for sure.
The microphone.
>> So, so I think we seek direction from
full counsel about um what they would
like to see us work towards and come
back to council for a proposal. So, if
majority of council directs us and says
we want you to get to the 15%, we will
come back prepared with that
information. But you also, if you get
that information tonight, want the
council to provide direction on where
they want to make the cuts.
>> That would be very helpful. Where they
want the cuts also is helpful, as
council member Hall mentioned earlier,
where not to touch for cuts. So, we're
looking for council priorities tonight
in areas to maintain funding or to
decrease funding.
>> Okay,
>> great.
>> So, let me respond to that because I
think that uh Council Member Hall is
spot on. it's easier and it's more
appropriate actually talk about what
your priorities are not what your dep
priorities are. So in terms of of from
my perspective the areas I would not um
want us to cut deeply into is is public
safety and or um um transportation.
Those are the two things that the public
says are most important to them. So
that's where I would say um sustain that
and everything else is fair game.
>> Okay. Thank you. And you have more
questions here, too.
>> No, I Oh, I do have more questions. Uh,
no, I talked well I talked about the
reserve policy. I think the language is
fine. I think I'm okay with doing
measurement at the end of the bienium,
not at the mid bienium point. Um I just
think that we make a commitment to a
number, we stick to that number and I
think um
you know we had a ad hoc financial
management committee back in the day and
that you know that was the successor to
the committee that uh council member Joe
talked about and that was a group that
got together on an as needed basis and
that might not be a bad thing for
>> for the council to consider going into
the next uh into the next year. Thank
you for that suggestion.
Um, Deputy Council President.
>> Okay, everybody pay attention. Deputy
Council President is speaking now.
>> Um, all right. So, I'm going to start uh
instead of being overall, I'm just going
to start on um on the areas where I'm
most concerned so I can get those
thoughts out of my head and then we'll
talk about some of the bigger picture.
So, um I definitely want to talk about
the $50,000 proposal, which I very much
appreciate, uh that would go to support,
uh organizations that are helping our
immigrant community. Um I would like to
see that fasttracked as much as
possible. Um we know that the emergency
is here. Let's call it an emergency
because it is for those families that
are um experiencing this. And not only
that, but as we saw through the
testimony uh tonight, uh it affects the
wider community as well. This is not
just focused on those families. This is
a community emergency. And we heard the
passion tonight and um we know from all
the emails we received and and other
conversations that this is really
important and needs to be addressed
soon, sooner than later. I do appreciate
the idea that we need to follow a
process and that there are multiple
organizations that can help on this. So
that yes needs to be um worked through
but whatever we can do to fasttrack this
so that we get the money into the hands
of the people that need it as soon as
possible I would really appreciate. So
>> you did have some good conversation I
think with the B city administrator
about that today.
>> Yes.
>> Yes.
>> Yes. I did. I I had a suggestion for how
we might do that. All right. So, do you
want me to discuss that or not?
>> You can discuss that now. Sure.
>> Oh, okay. [laughter] Well, I and then uh
our lawyer weighed in and said we
couldn't do it that way. I was hoping
that maybe we could take lawyers. I know
lawyers.
>> I was hoping that maybe we could take a
vote tonight, not specifically on what
we were going to do, but giving
permission to go forward, but we can't
even, according to our lawyer, we can't
even do that. Rachel, we really
appreciate you. [laughter] Thank you so
much.
But uh if we can fasttrack it, let's
let's do it. Okay. So that that is one
item. Um I'm very happy to hear and
again uh I think there was some
miscommunication. There were several of
us up at Providence Point earlier this
morning. They were very concerned about
Metroflex
um and thinking that it was being zeroed
out of this budget when that is not the
case. So, uh, I think we need to do some
communications and let people know. Uh,
we're moving out of the general fund and
we're thinking about taking it over and
taking out TBD. So, um,
>> I and I think you're going to have to
make that as your budget, you know, when
you're doing your budget and then we can
message because right now it's not in
the budget,
>> right?
>> And so, we we need you to provide that
direction, approve the budget, then we
can mess this job.
>> Okay. Uh again talking to uh um again at
Providence Point this morning, our
seniors, our disabled people, uh people
of low income and our immigrant
community are all using this. It's
serving a portion of our population that
really really needs transportation
services. Um and I think we need to be
aware of that. I also wanted to add
something that I forgot to talk about at
my last report on the regional transit
committee. I did mention that Metro is
planning to do an analysis of Metroflex
in 2026 and that of course will be
looking at services that they might
cancel. But the other part of it is they
are looking at turning some of those
metrlex routes into permanently funded
routes. And so uh part of what we need
to be looking at, I believe some one of
the other council members mentioned this
is strategic use of our transportation
funds to make sure that we're
communicating that the service is
available. um seeing if we can boost the
writership all of that because um there
is going to be this major review of
Metroflex and I think we want to make a
really strong case that this community
needs Metroflex.
So those are the the two items that are
really on top of my top of my head. Um,
I I am comfortable with this taking two
years to get to the 15%. But I have to
say that I agree with the other council
members that when you look at the amount
of funds that are in that undesated
funds, I mean, the bomb cyclone took
$3.6 million.
And if we were to have some emergency
like that anytime soon, we would really
be in trouble. So, we want to be working
toward I I mean, I'd love to see us at
12%.
At the end of, you know, at the uh for
the next I'm sorry, for the next half of
the bianium and then we make sure we hit
15% two years from now. So, so I I don't
want us to stay at 9% for sure. I think
we should be working toward getting at
least halfway there and then achieve the
goal the next time around. Um, I am
totally in favor of the audit committee.
I agree with council member Hall. All of
us should be involved in the budget
process. [laughter]
So, I don't want three council members
doing the budget. I want us all to be
involved in that. But um I have attended
almost every one of the audit report
meetings and uh I think it's really
important for us to understand what the
state auditors are telling us about the
the um uh fiscal responsibility that we
have and where we can make improvements
and the overall look from an outside
organization is really important. So I
would really uh support the idea of an
audit committee. I don't think it needs
to meet every month, but uh quarterly
perhaps, but um I think it's a great
idea for us to do that. Um and then I I
do I think the proposed update to the
reserve policy is is just fine. So, um
is there I mean there's so much to
comment on here. Did I forget anything?
I I think you hit all of the questions.
And again, I know it's uncomfortable,
but if we are going to find additional
cuts, do you have any areas that
>> Yeah, I think I brought this up last
time. I would love to have the history
of the pavement management program, one
of my very favorite funds, and I'm
looking to see if possibly we can find
some savings there. So, uh that is my
suggestion for at least something that
we should look at.
>> We can definitely find information.
Okay,
>> great.
>> Council President,
>> thank you. Let's see. Going through
this. Um, I think my big concept on this
is it's better to have the information.
It's better to take action on it than to
not know. I don't want to
overcorrect
something that I think when we do a few
calculations we're going to be on a much
better trajectory on. Um I do think we
need to have a future conversation about
how we can be a more productive city.
Um, and I mean that in phrase of like if
we look at our big four revenue areas,
there are certain things obviously like
property tax that we are limited by
state. Um
but there's other things like sales tax
where
when we are able to add businesses and
invest in business that can be more
productive and effective in the economy,
we actually see a return on that. And so
one of the things I'd really like us to
do is have a sense of
what can we do to push the needle on
revenues so that we don't sit in a
scarcity mindset continually
um with the idea that there is nothing
that we can do. Um so that that would be
the one of the big picture things that
comes to mind for me. Um, as far as this
situation, any items to add? Um,
Metrolex, um, I feel really comfortable
with the information from the
transportation benefit district fund
balance to use that for 2026. Um, and
then, uh,
I think we are probably fine to have a
policy conversation with council without
the need of an additional staff on what
are our goals for that program. How do
we feel about utilizing that within the
TBD as something as a part of our next
bienium budget?
>> Council President, I want Deputy City
Administrator to weigh in on that
because I the people who resource the
meeting say they need resources. So, I
think if we're going to have those
conversations and the recommendation is
that we need more resources, then I
think that needs to be part of the
budget discussion as well.
>> Uh, thank you, Mayor Paulie. I think for
a policy discussion and to facilitate a
policy discussion with council on goals
of Metroflex, I think that's something
that the administration feels
comfortable we can do with the resources
we have. I think it's what comes out of
that discussion and the expectations
from council how we um need to then
evaluate the program or evaluate
alternatives and what direction comes
from that. we may need it. I I would
anticipate needing additional resources
um for the followup and looking at
>> the proposal then so it's clear for
everybody would be to have policy
conversations only and stop work until
they go through the next budget cycle
planning for the next ban where they
could add resources to do the work
>> unless council wants to add resources
midcycle which um is they certainly have
the ability to do that.
>> Thank you. That's great clarification.
Yeah. And I think with that policy
conversation as we are going through
that we may figure out you know is this
something that we directionally want to
do or are we going to take that six
month out you know what what are the
goals that we have for the program are
we able to achieve them um etc. But if
we need more data on that, um, I think
we could at that point look at staff or
consultants. But I think it's pretty
important to me that we continue the
Metrolex program so that we can continue
to build wrership. Um, I still strongly
believe that we need to change out um
the map boundaries and that can make it
an even more productive um contract with
that. Um the $50,000 for immigration
funding um I feel a real urgency on
that. I think we have a very clear
understanding
that
how do I put this? When we were facing
the
pandemic and housing crisis, um we went
with the organizations that we knew were
on the ground that had capacity to
provide services. We did not necessarily
go to a commission to evaluate that for
a month or so before giving that money
out. Um I I feel pretty strongly that we
know the organizations on the ground and
that I trust our administration to make
those decisions so that we can get that
out quickly. Um
>> let me get clarification on that.
Uh, is it possible, and maybe it's a
Rachel question, for council to provide
direction that says that the mayor just
does the review and issues checks? Is
that something? No, I'm getting a no.
I'm getting a no.
>> But it's $50,000. Isn't that under the
mayor's ability to sign and execute a
contract?
>> Come on up.
Rachel's in the spotlight. it is. So,
while the council can't give direction
on it tonight, the mayor could certainly
do what the mayor is authorized to do
under her signing authority and let
everyone know about it later.
>> Yeah.
>> At this point in time, we have not
received any requests or any information
about any of our agencies. So there is
some work that needs to be done to
assess the need and the capabil like who
is already on contract that we can do it
with. We don't have time to negotiate a
new contract and get it signed. So um I
just think we need to maybe have some
more clarity over with um our lawyer and
with the administration about how to
speed it up because I just don't know
that we have landed on the plane landed
that plane yet.
>> Deputy say administrator.
Uh, Madame Mayor, if I may, um, in, uh,
working with the parks and community
services staff today, and there's a park
board meeting at this time, otherwise,
director Jeff Watling, uh, would be
joining us, but we were trying to
examine how we could uh, deploy more
resources to organizations that support
immigrant families in Isiqua the
quickest we possibly could, certainly
within the confines of city policy and
uh, state law and um and so we believe
we have a a quick path though it would
um include working with the human
services commission but uh that we could
look at the contracts that we have amend
the contracts that we have versus um
organize new contracts and so um so
that's that's our proposal at this point
to try to deploy those resources as
quick as we possibly can. Thanks.
>> Okay. I'm I'm just going to push back on
the idea that this needs to go to a
commission. I I appreciate professional
advice from staff. Um I think we heard
from the community that they would like
us to take action. We know a particular
group on the ground that is providing
these resources is cashstrapped.
So, I will just put my strong idea out
there that this we should not get in the
way of getting that money out into the
community and getting that done. Um,
moving on. Uh, any other items to add?
Um, I think the Eco Northwest report and
the implementation on that is really
important. I am willing to sacrifice the
housing strategy work plan portion of
that and so I agree with Council Member
Hall. I'd like to break down on that and
see what we can do in order to just be
able to implement the Eco Northwest um
stuff.
Um any areas that should not be removed?
Uh you've done a great job scrubbing,
pulling, you know, all of that. So, uh,
the only feedback I have there is on the
Eco Northwest portion of that and then
moving the Metrlex into TBD
um target for closing the fund
uh balance gap this bienium. I I'm
aiming toward I think 12% but from my
point of view it's more about a
trajectory on that. Um, and so I agree
with the idea of being able to close the
gap in two years is probably good. Um,
I'm not a math person, but I did do a
back of the napkin calculation. Just
moving the public safety sales tax stuff
um, out of unrestricted expenditures and
that on my calculation gets us to 11.7%.
So I think I feel pretty comfortable we
can move in that direction just by
getting our math right. Um, that being
said, I am absolutely willing to do a
scrub of existing services to find a h
100red or 200 or $300,000 or delay a
capital improvement project that would
provide opportunities to get there
faster. I think the goal is to get there
in like a two-year period from my
perspective. And so
that should be um one of the focuses
toward that end. Um the public safety
sales tax um right now what we are
showing for 2026 is programming for
um
1.062
million out of the 2.2 million. And so
I'd like a better understanding of what
the rest of that was cuz my initial
understanding was only 750,000
to um savings for facilities. If that
has been changed, let me know. But it
seems like there's an additional
$250,000
there that isn't
allocated. We had designated about 150
for other capital needs that isn't
currently identified, but we wanted to
have a placeholder in case there were
some priorities that came up, but only
750,000 has been truly identified for
public facilities.
Okay. Um I think I think council should
have a clear conversation about the
public safety sales tax and what we want
to use it for for 2026.
rather than
necessarily
peacemailing it as we are um right now.
So, I would like to have that
conversation with council
um
toward that point. Um I'd like to look
at our fleet fund balance. I'm willing
to consider whether that 300,000 should
come out of the public safety sales tax
or from fleet fund balance. So that's um
a question for me. Um looking through
some of the other notes that I took. Um
revenues from sale of properties. I
would really prefer to keep that in the
general fund for flexibility in the case
of emergencies or something like that.
if we pull it out into another fund and
put it as a designated thing that that
just I I remember um Beth Basley, our
one of our previous finance directors,
always wanted us to have the flexibility
with our funds and I think that is one
that just
scares me from moving it out. But I
guess if we are if we spend that money
at some point it'll be gone. But that's
my thoughts there. um 4th of July. Since
there is currently no specific ask, I
don't feel ready to allocate funds and
so I would leave that off of this
proposed budget at this point. Um World
Cup, I would like to hear about the
ELTAC options. Um and then I would ask
the council and maybe the administration
to look at um additional operation costs
from safety and police and all of those
things. Could those could we consider
that those could be covered by
additional sales tax revenue from the
additional people that would come into
town? You know, as as an idea, we are
not currently programming or
anticipating an increase in sales tax
revenue.
So, should we not go ahead and in
anticipate an increase in um operational
expenditures? I think those might play
out well together.
Um and then finally I will just mention
construction sales tax. Um I think
having that conversation about
how much of that is programming and
going into our ongoing expenditures is
important. And so I'd like to understand
how we are utilizing that in 2026.
Um how much of that is ongoing versus
one time. um just so that we have
awareness and if anything's there are
one time I might suggest
um pushing those off and delaying them
and utilizing that to increase our
ending fund balance um because as we are
looking at revenues in revenues out
anything that is ongoing and stable
needs to be for ongoing and stable
expenses and in a case like this when we
have a lower fund balance. Delaying or
um pushing out projects that are from
revenue sources that can be in the
general fund should be one of our
priorities.
>> Thank you, Council President. Um well,
Kristen, thank you. Wonderful, wonderful
job. Deputy City Administrator and
Rachel, the bad girl over in the corner.
Thank you for all of your stuff. Oh,
yeah. Um so we will um do a second round
if there are a couple more comments and
clarifications and then we'll wrap it
up. Council member Hall and Council
Member Jen and Council Member Hall.
Yeah, I guess um I would want to
reiterate that I would like to see what
cuts would be needed to get to that 15%
by the end of 2026.
that that doesn't necessarily mean we
have to adopt that, but I would like to
see, you know, both what would it take
to get to 12% and what would it take to
get to 15% so that we can have both
options totally on the table.
>> Um, I think in terms of where we should
make cuts, I I this is more of like a
revenue thing, but did we ever decide
that we were going to raise the jail
rates to get full cost recovery?
Sorry, that's a question.
>> It's kind of a question, but she can
answer.
We have made adjustments to the jail
rates to get closer to cost recovery. I
don't believe that we are fully there at
this point. So, we still are needing to
um evaluate that as part and we
anticipate doing that as part of the
2728 budget process.
>> Okay. Because we need time to work with
our partners who use our jail services
and alert them of any cost increases.
>> Yeah. Yeah. because that's definitely an
area where I mean we are really not in a
position to be able to be subsidizing
other cities use our facilities.
>> Um I'm also curious. So I a couple weeks
back when we first started talking about
this I went through the budget and one
thing that stuck out to me is that we're
spending like $2 million a year on
software and through my work with
nonprofits and through my work you know
we've successfully renegotiated software
contracts because the marginal cost to
them of providing it is not that high.
Um, so I'm wondering if trying to just,
you know, squeeze our vendors a little
bit on that is something we've
considered.
>> Thank you for the suggestion.
>> Um, and then in terms of Metrolex, I
think, you know, putting it into the TBD
sales tax for next year is fine. Um, I
also think, um, there's a King County
report about, you know, it's like their
cost whatever service analysis or
whatever. they have very specific
criteria of how they evaluate metrlex of
what what makes it you know what
criteria it has to meet to get to be a
fully funded one. So I think we should
definitely understand that understand
where we are relative to that and see if
it's actually realistic for us to ever
get to a fully funded metrlex uh by
metro or not. Um, one thing I've also
noticed, uh, because I went on a whole
rabbit hole of the King County budget,
but they actually in the King County
metro budget for, uh, because their
bienium is offset from ours, it's 27 26
to 27, they have a line item in there
for, um, helping fund a shuttle system
within Seattle. And so I think if that's
something that we discuss and is that
you know something we want to move
towards we need to get it on their radar
before they do the next their next
budget in 2028. And that's one of the
options that I'd like to consider when
we have this um bigger uh greater uh
council discussion. Um, and then you
know in terms of the additional funding
for immigration resources, I think just
compared to the whole size of our
deficit, I mean it's like it's three
million and this 50,000 is such a drop
in the bucket compared to that and it is
such a critical need in our community
right now. So I'm fully in support of
whatever we need to do to get that into
the community as quickly as possible.
And even, you know, at a personal level,
like I'm thinking, you know, what can I
do to support that more in my personal
life cuz, you know, yeah, thank you for
that last comment because that's been
part of our message as well is that we
are encouraging folks to donate to
agencies that they know. We are
encouraging folks to reach out to
certain individuals at these agencies
that are willing to take on volunteers.
and we're encouraging folks to come out
for the Day of the Dead, which is a a
celebration that's going to be happening
a week Sunday at our community center um
hosted by one of our local partners. And
the more people that show up there, the
more the communities that feel
threatened will feel like we're all here
for them. So, thank you for mentioning
that personal commitment. Much
appreciated. I think it's Council Member
Hall and then Council Member Joe.
>> Well, I had two clarifying questions
just for staff. Do you feel like you
have good direction from council about
what to do with
>> with Metroflex funding in particular
because because and and you now you've
talked about TBD so now four of us had
mentioned that but before that only
three so I just wanted to
>> make sure
>> I I believe we do. Thank you.
>> Okay cool. And then the other thing is
um there's been a lot of asks tonight
for information
scenarios for getting to 15 by the end
of this year scenarios are getting for
15 by the end of next year or 12% and
then in two years or three years getting
to 15%. Does the staff do does council
need another touch? Do we need another
special meeting or do we feel like the
schedule of next steps we have is enough
time?
>> The people who schedule the meetings are
looking at each other.
>> I think to to respond to that, Council
Member Hall, um we're going to do our
best effort to give you all the
information you need by the next
meeting. That said, if council needs
more time, has more questions, we have
it available. So we want to do the
midbyenium adjustment by the end of the
year. So if we need to have another
meeting following November 10th, we can
always do that and talk about the
budget. So we do have a little bit of
time. That said, I think we're going to
push forward and provide you uh the best
information we can produce in two quick
weeks and um and then see if we need to
add additional meetings after that.
>> Great questions, Council Member Joe.
>> Thank you. Um, as chair of the ELTAC
committee, I just thought I would um,
jump in a little bit on the comments
made about ELTAC. Um, at our next
meeting in November, we'll be going over
the application that we put together.
And those applications will be due
January 31st. And they're primarily for
um, local businesses and nonprofits that
want to um, seek initiatives or do
initiatives that'll bring in people from
over 50 miles away. Um, we provide help
for marketing operations and activities
to increase the tourism. Um, so it's a
little bit I' I've been going through
the rules and it's a little bit strange
because technically the city would have
to apply to ELTAC for a grant.
>> Correct.
>> But the council is the one that approves
the grants. So, um if you I think if you
just put a piece of paper together and
said council wants money uh for World
Cup and gave it to us, then we would
probably um have to put it through the
committee to approve, but then you would
approve the final allocation. So, um
it's a little bit of a round circle, but
uh it is possible. But as council member
Ray pointed out, uh it will probably be
overprescribed in terms of the number of
organizations that apply for normal
funding money, which is only $50,000
during the year and then you'll be
stacking World Cup requests on top of
that. So,
it will be difficult to get funding for
the city from that source of funds. So,
just wanted to clarify that for
>> everyone that was talking about. Thank
you.
>> Um, so we're sort of in a second round
wrap-up. Are there any other council
members who would like to speak again?
>> Seeing head nods. No. Um, and uh, the
city deputy city administrator would
like to speak.
>> Go ahead.
>> Uh, well, first I just want to correct
an earlier statement that I made. The
next time we discuss the budget with
council is on November 17th. Thank you
to Clerk Geyser for correcting me on
that. her mind is a little more sharp
about council meetings than mine at this
late hour. Um, so November 17th is the
next time we return. Uh, we're going to
do our best, like I said, to provide the
information as requested by council.
Thank you so much for the discussion and
the direction this evening. Uh, really
appreciate the discussion.
>> That's great. And director, you have uh
you've heard gotten a ton of feedback
tonight, but pretty clear in what the
council expectations are.
>> Yes, thank you. I appreciate the
feedback.
>> That is great. Well, thank you for that
discussion. Super robust. Uh, budgets
are difficult and we're in a difficult
time. So, thanks for that. The next item
on the agenda this evening is good of
the order. Does anybody have anything
for good of the order?
>> Council president.
>> Thank you. Um after hearing from the
community and council members, um deputy
council president and I have um put
together a statement um from the council
um that we would like council members to
review. It should be in your email. And
so my understanding is we cannot adopt
anything tonight because of the way that
the meeting was structured. Um, but we
would like to get
feedback,
>> feedback, a sense of is this the
direction you would like to move forward
with being able to make a statement both
condemning um the inclusion of um this
in our community and talking to ways
that um our police is not involved with
this. Um and also that we are looking to
uh
make some changes. So, Deputy Council
President, did you have
>> Excuse me.
>> Sorry.
>> Deputy Council President, this feels
like a committee of the whole meeting.
It's a special council meeting. Deputy
Council President,
>> I I'm just going to suggest that the
council president read the statement out
loud so that the public can hear it. I
think it's important that we have it on
the record tonight. Uh even though we're
not going to be voting on it, I I think
it's still something very important. So,
I would turn it back to the council
president to read it out loud.
>> That sounds great, council president.
Thank you. Um, the Isiakiqua community
was rocked when a mother delivering her
child to an Isqua preschool was taken
into custody by Immigration Customs
Enforcement, ICE. Council members have
received numerous heart heartfelt emails
expressing concern, outrage, fear, and
empathy for this young family that is
now torn apart. Although we do not yet
know the exact details of the mother's
circumstances, the Isiqua Council can
affirm the following. Every person,
citizen and non non-citizen,
community member, uh, no matter their
immigration status, deserves the
constitutional right to due process
under the law, including the right to be
treated with dignity, protection from
illegal searches and seizures, the right
to legal counsel, and the right to have
their case heard by an impartial judge.
Every person has the right to know their
accusers, beginning with the
identification of the arresting
officers, identification of the agency
the officers represent, individual badge
numbers, and uncovered faces.
Every person has the right to access
education, worship, the justice system,
and health care without fear of
abduction. Schools, churches, courts,
and hospitals should be off limits to
ICE activity as they have been under
previous presidential administrations.
And no person should be targeted for
arrest based solely on the color of
their skin, the language they speak, the
religion they practice, or their
immigration status. These are
fundamental American principles
confirmed over two centuries by American
courts and the American people.
The Isiqua City Council commends the
Isiqua Police Department, IPD, and Chief
Schwan for abiding by the Keep
Washington Working Act, which prohibits
local police from enforcing federal
immigration laws, and for IPD's
proactive efforts to protect Isiqua
residents from hate crimes,
inappropriate federal use of automated
license plate reading cameras, and
harmful actions by those who seek to
divide us.
We share the pain and sorrow of this
moment with our entire community. The
Esqua City Council pledges to work with
county, state, and federal elected
officials to promote justice, establish
further human rights protections, and
provide resources for all. We call on
these same elected officials to enact
protections called out here, which
cannot be legislated at the local level.
Isiqua faces an uncertain and
challenging future, but Isiqua residents
have demonstrated through two recent
crises that we are resilient and
innovative people. By upholding our
values and working together, we believe
that Isiqua can and will continue to be
a safe, healthy, and welcoming community
for all.
>> Thank you.
>> Thank you, Council President. And that
does provide the public with the
opportunity before seeing a council
package to understand what you would be
voting on next time. Is there any other
items for good of the order? Uh, council
member Hall.
>> Well, just a question then. Since some
of that does intersect with potentially
our legislative agenda, is this
something we'll consider um as part of
that process too?
>> It's interesting. The governor's office
so far has not found a way to be able to
change the protections within the state
from the federal uh changes that have
happened and it's been difficult for
them to figure out what kind of
statement to make to the community. The
keeping Washington working is great. Uh
but the senator Senator Patty Murray
staff that I spoke to today also said
the work needs to be done at the federal
level and currently the federal level is
not functioning in many many ways.
>> Completely agree. There are some things
in particular in this letter that the
state is currently working on like the
ALPR like things like that at the
legislative level. And so I was just
thinking maybe we bring Shel into the
conversation. She would have a good lay
of the land.
>> Absolutely. Sounds great.
>> But you're absolutely right. there are
things that no matter what would be much
better if if happen.
>> And I I want to make sure our community
members are knowing the the the defects
and defaults that we have in our current
federal criminal justice system and that
as much as community members, myself and
others would love to say it's we're
going to make it safer for kids to go to
school, we need to be able to deliver on
that if we're going to say it. And right
now the tools that are out there and the
language that is out there is not
helpful. So, I just want to make sure
that the community understands that
you've done everything you need can do
and advocacy is going to be a part of
your work and we'll see where this all
comes out. Council President,
>> thank you. I think it's important to
recognize that not all things can be
solved and addressed within a government
context. Um, we have lots of limitations
and so, uh, there may be opportunities
for community members, as has been
stated earlier, to organize ways to walk
kids to school,
>> to be there at the end of school when
kids are being released and stay around
a little bit longer as a protective
force to attend events that are of
cultural significance and understand,
you know,
my ability to exist in that situation as
someone presenting as I do who is not
going to be targeted um by immigration
enforcement and so use that privilege
and opportunity. Um I would encourage
anyone who is looking for those um to
reach out. Many of us know some of the
organizations that are doing that work
that could use additional helping hands
and additional funds um and a community
coming around and support them is
is a very important um next step as as
we look at whether or not people feel
comfortable and welcome within our
community.
>> That is the other side of the coin.
Thank you for reinforcing that the
community here is so strong, is so
generous, and is so concerned and has
opportunities to participate. That's a
message that we just need to keep
echoing out there. Is there any other
items for good of the order?
Seeing none, we are adjourned at 9:35.
Thanks for all your comments tonight.