City Council Committee of the Whole · Monday, October 30, 2023 · City Council Digest

3. AGENDA ITEMS

2023-2024 Mid-Biennium Budget Adjustment ID 1512

90 min · Robert Hamud, Chief Financial Officer Susie Monsell, Budget Manager · packet pp.5–46

Topics: Budget

▶ Watch from 0:54 Open packet at p.5 ↗

Staff report:

Direction Needed from Council For the October 30, 2023, Committee of the Whole presentation, staff requests Council feedback on the proposed 2023-2024 mid-biennium budget adjustments, as well as any questions the Council may have that staff can answer prior to the next touch point on this item in November.

1791 segments .txt ↗

0:00 ↗ you are ready give us an on air and we

0:03 ↗ will get

0:07 ↗ going welcome everyone I council

0:10 ↗ president Walsh call the October 30th uh

0:12 ↗ special Committee of the whole meeting

0:14 ↗ to order at 6:30 p.m as a reminder we

0:17 ↗ continue to have a remote aspect to our

0:19 ↗ meeting so staff community members and

0:22 ↗ tonight even a council member will be

0:25 ↗ participating remotely via WebEx council

0:28 ↗ member D Michelle is feeling under the

0:30 ↗ weather and is attending

0:33 ↗ virtually okay so you're nodding so I

0:35 ↗ know you can hear us so we're good there

0:38 ↗ um public comment is the first item on

0:40 ↗ our agenda there are multiple public

0:42 ↗ comment opportunities at tonight's

0:44 ↗ meeting there is a general public

0:46 ↗ comment opportunity at the beginning of

0:48 ↗ the meeting or you can make comments

0:50 ↗ after the presentation and Council

0:52 ↗ question and answer period on tonight's

0:54 ↗ agenda items we only have one agenda

0:57 ↗ item tonight which is id51 12 2023 2024

1:02 ↗ midby Anyan budget adjustment just for

1:05 ↗ reference so for public comment uh

1:09 ↗ members of the public May address

1:10 ↗ council at this time in person or

1:13 ↗ virtually those who signed up in advance

1:15 ↗ to make comments will be called on first

1:17 ↗ if you're joining us virtually and would

1:19 ↗ like to make comments please raise your

1:21 ↗ virtual hand if you're on a phone you're

1:23 ↗ going to press star three if you're on a

1:26 ↗ smartphone or computer look for the hand

1:29 ↗ icon or you can send the host a chat

1:32 ↗ message if you're in the room and didn't

1:34 ↗ sign up I'll ask for other speakers

1:36 ↗ before closing this portion of the

1:39 ↗ meeting and so I'm going to wait a

1:41 ↗ moment just to see if anybody wishes to

1:43 ↗ raise their hands virtually I see one in

1:48 ↗ person okay and clerk do we have anybody

1:52 ↗ signed up to speak council president

1:55 ↗ nobody signed up prior to the meeting to

1:56 ↗ speak and we have no virtual attendees

1:58 ↗ at this time f fantastic then you go

2:02 ↗ ahead and come up

2:05 ↗ um and if you'll go ahead and press the

2:08 ↗ button and state your name

2:11 ↗ and there you go did I press the right

2:13 ↗ button thank you for the record my name

2:15 ↗ is Liz Tidman I live in isqua and I'm

2:18 ↗ very grateful for how your process works

2:20 ↗ uh I'm here this evening to learn more

2:22 ↗ about how your how the our budgeting

2:25 ↗ process works and I'm doing that because

2:28 ↗ I think you know I have a concern with

2:29 ↗ uh the budget decision-making process

2:32 ↗ that got us to the current status of SP

2:35 ↗ 025 secured parking for police vehicles

2:39 ↗ because I think we all know that that

2:40 ↗ project got conflated with another

2:43 ↗ project having to do with locks on the

2:46 ↗ jails and it's only my opinion but it is

2:50 ↗ my

2:51 ↗ opinion that calling it SP 025 secured

2:55 ↗ parking for patrol vehicles does not

2:57 ↗ really represent reality and

3:00 ↗ my background in systems I don't

3:02 ↗ understand how it is that a new project

3:04 ↗ can walk in the door and be conflated

3:07 ↗ with that project and still have it

3:11 ↗ represented by the old name and so

3:15 ↗ you're here to make midb any and budget

3:18 ↗ adjustments and so I'm curious if you've

3:21 ↗ got the authority to change the names

3:24 ↗ like that and my the thing I did in

3:27 ↗ technology had a lot to do with data

3:29 ↗ name ging so that later on when you

3:31 ↗ wanted to retrieve information you'd be

3:33 ↗ getting what you thought you were going

3:35 ↗ to get uh in addition I'm going to learn

3:39 ↗ more because I think it's in a meeting

3:41 ↗ like this that good ideas come forward

3:45 ↗ from you folks to be cons that to that

3:49 ↗ later turn into actions at regular City

3:51 ↗ Council meetings so I'm very interested

3:53 ↗ in the process I have a concern about

3:56 ↗ how the process worked on at least one

3:58 ↗ project and so I'm hoping for process

4:01 ↗ Improvement thank

4:03 ↗ you fantastic thanks Liz appreciate that

4:06 ↗ very much um I'll just check in once

4:09 ↗ more with clerk see if there's

4:11 ↗ anybody nope okay fantastic uh as a

4:15 ↗ reminder for anyone uh written comments

4:18 ↗ can be submitted at any time by emailing

4:21 ↗ city council at isqua w.gov and chief I

4:24 ↗ assume you're here for budget stuff not

4:27 ↗ to make a comment fantastic

4:30 ↗ just making sure okay so uh at this

4:35 ↗ point we are going to move on to our

4:38 ↗ agenda item which is ID 1512 2023 2024

4:42 ↗ mid banum budget adjustment presented by

4:45 ↗ Roger or Robert hammood Chief Financial

4:47 ↗ Officer and Susie monel budget manager

4:50 ↗ thank

4:51 ↗ you thank you council president good

4:53 ↗ evening members of the council uh

4:55 ↗ tonight we're presenting the 20232 24

4:58 ↗ mid buing budget adjustments and um

5:01 ↗ before I start I'd like to just thank

5:03 ↗ staff especially my budget manager Susie

5:06 ↗ monel budget analyst Nathan hatia all

5:09 ↗ the department heads including a couple

5:11 ↗ that are here tonight uh with you um to

5:14 ↗ gather this process and again this is

5:16 ↗ the first time we've done a midb anual

5:17 ↗ budget adjustment so it's different than

5:19 ↗ the annual budget process this is a a

5:22 ↗ review again things that we've missed

5:24 ↗ throughout the year things that are

5:25 ↗ upcoming in any changes and assumptions

5:27 ↗ we've had since the passage of the

5:28 ↗ budget a year

5:36 ↗ and so tonight we're going to talk about

5:38 ↗ the budget process the updated revenue

5:40 ↗ forecast proposed expenditure

5:42 ↗ adjustments impact to general fund

5:44 ↗ balance and next

5:48 ↗ steps and so just a a summary on the

5:51 ↗ process and again we adopted the budget

5:53 ↗ approximately a year ago in November

5:55 ↗ 2022 in the nature of the Bal budget

5:58 ↗ we're not required to prepare full

5:59 ↗ budget for the second year of the bium

6:01 ↗ but we're evaluating if adjusts are

6:03 ↗ needed um similar to the statement I

6:05 ↗ just made and again budget staff

6:07 ↗ conducted this work throughout the

6:08 ↗ summer and the fall of

6:09 ↗ 2023 including the full 2324 revenue

6:13 ↗ forecast and administration recommends

6:15 ↗ several adjustments to the 23 and 24

6:17 ↗ budget but again it's a docu things come

6:19 ↗ up next year this is not the only pass

6:22 ↗ that we'll have if if changes are made

6:23 ↗ or adjustments are made but this is the

6:26 ↗ review

6:28 ↗ process so the updated revenue forecast

6:31 ↗ uh the last time we came to you with the

6:33 ↗ revenue forecast was in August we have

6:35 ↗ been monitoring I think you probably

6:37 ↗ mention or remember that we were looking

6:39 ↗ at sales tax sales tax is not performing

6:41 ↗ as strong as it was a year ago we're

6:43 ↗ still seeing that same Trend but it's

6:45 ↗ holding with our projections right now

6:47 ↗ the construction revenues themselves

6:49 ↗ they're about 30% less year-over-year

6:52 ↗ that's that's been consistent month over

6:54 ↗ month and we're seeing a little bit of

6:56 ↗ softening as said with brick and mortar

6:58 ↗ retail it's declined year year over-year

6:59 ↗ uh some of our retailers are still

7:02 ↗ strong but they're strong as far as

7:05 ↗ about the rate of inflation some of the

7:06 ↗ other ones especially the ones that do

7:09 ↗ home decor businesses business related

7:11 ↗ construction related those have dropped

7:13 ↗ a bit the bover revenues so again the

7:16 ↗ grossy receipts uh business license that

7:18 ↗ we receive quarterly from our businesses

7:21 ↗ they've experienced a relatively

7:23 ↗ relative decline some of that is because

7:25 ↗ again of construction activity uh being

7:27 ↗ softer they're all put into the same pot

7:30 ↗ of money so it's um not clear how to

7:33 ↗ break them completely out but again

7:35 ↗ that's that's really the focus we've

7:36 ↗ seen with the decline but there's also

7:38 ↗ been been a decrease in businessto

7:40 ↗ business activity I know I mentioned

7:41 ↗ this last time so just a refresher it's

7:44 ↗ anytime of business purchases equipment

7:46 ↗ or software anything else to be used at

7:47 ↗ the business both in the sales tax and

7:50 ↗ the bno category that has declined

7:52 ↗ year-over-year so we're seeing a little

7:53 ↗ bit softer business climate right now

7:56 ↗ and utility tax and in the flip side to

7:59 ↗ the this is that utility tax and

8:01 ↗ investment interest revenues have

8:02 ↗ increased so it's offset our declines um

8:06 ↗ or projected declines and then there's

8:08 ↗ been an increase in property tax revenue

8:10 ↗ so again the property tax assessment the

8:12 ↗ bills you receive do not match how it's

8:15 ↗ assessed by the state and I know we've

8:17 ↗ gone through um many of the process

8:20 ↗ before when we get the county assess

8:22 ↗ Valu so this year our assess values are

8:23 ↗ actually up slightly from 24 over 23 due

8:27 ↗ to some new newly assessed valuation and

8:29 ↗ some construction within the

8:33 ↗ community and the re revenu so again

8:35 ↗ real estate excise tax revenue this is

8:38 ↗ not part of the general fund but we

8:39 ↗ wanted to call it out because that is

8:41 ↗ obviously a main source of our revenue

8:43 ↗ for transportation projects especially

8:45 ↗ but Public Works projects in general re

8:49 ↗ Revenue projections are about $3 million

8:51 ↗ for

8:52 ↗ 2023 we've lowered the forecast since

8:55 ↗ August to 3.2 million for 2024 and again

8:58 ↗ we are waiting to see a rebound to see

9:00 ↗ if anything happened at the end of the

9:01 ↗ summer with those revenues again they've

9:03 ↗ been pretty flat in the real estate

9:05 ↗ market and also the residential and

9:08 ↗ Commercial markets they slowed over the

9:10 ↗ past year and total transactions for

9:12 ↗ both residential and Commercial are down

9:14 ↗ 36% for the third quarter of 2023 over

9:17 ↗ the previous year so again both those

9:19 ↗ sectors are flat and if you recall I

9:22 ↗ know I mentioned this last time that

9:23 ↗ last year we had um and the year before

9:25 ↗ we had significant commercial

9:27 ↗ transactions in that commercial real

9:28 ↗ estate Market um has been very very slow

9:31 ↗ this year and again we have we also are

9:34 ↗ anticipating no major development

9:35 ↗ projects expected right now at the city

9:37 ↗ starting in 2024 that doesn't mean they

9:39 ↗ won't happen but right now we're not

9:41 ↗ anticipating yes so before you move on

9:44 ↗ just um I have a question on that

9:46 ↗ looking at the attachment B that you had

9:48 ↗ had um in the packet the budget on a

9:51 ↗ page when I look at the

9:54 ↗ reate revenues for 2024 that's listed Ed

9:59 ↗ as 4 million so when you're talking

10:02 ↗ about the $3.2 million projection there

10:05 ↗ is that then added to by transferring in

10:08 ↗ general

10:10 ↗ funds or has that changed since this was

10:14 ↗ pulled together hi sorry Susie budget

10:17 ↗ manager um so the budget on a page

10:21 ↗ update does not include Revenue changes

10:24 ↗ um unless those are going directly

10:25 ↗ towards something like a grant um so if

10:29 ↗ if you also look at the general fund

10:30 ↗ Revenue piece of that it won't match the

10:33 ↗ forecast that we included in the staff

10:35 ↗ report so that's mainly because it's

10:37 ↗ generally best practice not to adjust

10:39 ↗ budgeted revenues uh we forecast it

10:42 ↗ internally for our larger planning

10:43 ↗ processes but for specifically 2024 it's

10:47 ↗ not typically best practice to reduce

10:49 ↗ the revenue uh amount so that 4 million

10:52 ↗ is what was budgeted for re revenues

10:54 ↗ we're now forecasting about 3.2 million

10:57 ↗ but we worked those uh forecasting into

11:01 ↗ as Robert will say in the next bullet

11:02 ↗ point into the capital Improvement plan

11:04 ↗ that we did earlier this year so um

11:07 ↗ that's why it CHS four million still

11:08 ↗ instead of

11:09 ↗ 3.2 but it will be that number okay so

11:13 ↗ then to follow up on that if I'm using

11:16 ↗ that budget on a page to try and

11:20 ↗ understand you know what the income and

11:22 ↗ the outcome is and how that affects the

11:25 ↗ estimated ending fund

11:27 ↗ balance there is a column on there for

11:30 ↗ the proposed midb Anum budget

11:33 ↗ adjustments to expenditures but not to

11:36 ↗ revenue so does that final column still

11:42 ↗ apply and reflect this 3.2 versus 4

11:45 ↗ there should be a column for 2024 midby

11:49 ↗ adjustments Revenue um there were some

11:50 ↗ in other funds as well um so if we were

11:54 ↗ to adjust that Revenue piece that's

11:55 ↗ where it would show um it should be

11:58 ↗ there sorry if it's apologies if it's uh

12:01 ↗ mislabeled it's there it's blank um

12:04 ↗ there's a negative to expenditures of 1.

12:08 ↗ 1446 million yes uh so apologies I

12:12 ↗ thought you said there was no I thought

12:13 ↗ you were saying the column was missing

12:15 ↗ no the column's there but there's no

12:17 ↗ value in the um midb Anum budget

12:20 ↗ adjustments to revenue yeah so if we

12:23 ↗ were to adjust it to the 3.2 million

12:25 ↗ that column would show

12:27 ↗ 800,000 um but generally it's not best

12:30 ↗ practice to reduce revenues in the

12:32 ↗ budget um unless it's directly tied to

12:34 ↗ an expenditure so we can provide a

12:38 ↗ forecast um for Reit that will work in

12:41 ↗ that 3.2 number the one that's currently

12:44 ↗ in the adopted CIP from earlier this

12:45 ↗ year is still um I would say it's still

12:49 ↗ accurate um there may have been

12:50 ↗ adjustments on the margins but I would

12:52 ↗ say that one is still accurate but we

12:53 ↗ can provide an updated one U before the

12:55 ↗ next touch Point yeah I think that would

12:57 ↗ be useful for me because when I'm

12:59 ↗ particularly when I'm looking at Reit

13:01 ↗ I'm seeing 9 million as the 2022

13:05 ↗ estimated ending fund balance and then

13:08 ↗ at the end of 2024 it's showing 4.4

13:12 ↗ million and if it's going to go down

13:13 ↗ another

13:14 ↗ 800,000 then absolutely yeah we can

13:18 ↗ provide that forecast for sure apprciate

13:20 ↗ absolutely uh Deputy council

13:22 ↗ president can you just out of curiosity

13:25 ↗ can you walk us through why it's not

13:27 ↗ best practice to adjust um revenue is it

13:29 ↗ because I mean then you just be making

13:31 ↗ another budget and we just have another

13:33 ↗ annual budget instead of perhaps I just

13:36 ↗ answer my own question in your words

13:38 ↗ here what do you think yeah and

13:40 ↗ generally it's not best practice because

13:42 ↗ revenues are just going to change so

13:43 ↗ much between now and then I mean

13:45 ↗ hopefully not too much from the forecast

13:47 ↗ but um if we were to adjust revenues

13:49 ↗ based on the latest forecast each time

13:51 ↗ we'd be doing a lot of a budget budget

13:53 ↗ amendments just on the revenue side so

13:54 ↗ that's the primary

13:56 ↗ reason and just a side down to that read

13:58 ↗ is the the most volatile Revenue Source

14:00 ↗ we have in the city and so this is our

14:02 ↗ best guess we do not know how the market

14:04 ↗ even the experts don't know how the

14:06 ↗ Market's going to be in 24 so that's

14:07 ↗ part of the the methodology here as far

14:10 ↗ as not that's part of the reason we

14:12 ↗ don't reappropriate or re look at the

14:15 ↗ revenues unless again it's attached to

14:17 ↗ expenditures because they are Vol and

14:19 ↗ even sales tax is volatile of

14:21 ↗ course okay thank

14:24 ↗ you again the next bullet point that

14:26 ↗ Susie alluded to 2 I had a question

14:29 ↗ sorry thank you Barb appreciate it

14:32 ↗ council member D

14:33 ↗ Michelle yeah my I think my question is

14:36 ↗ a a followup with council president

14:38 ↗ walshes and uh um council member U

14:41 ↗ Hall's questions uh because I I had

14:44 ↗ asked a question about the sequence that

14:48 ↗ we're going to go through in terms of

14:50 ↗ the transportation benefit District um

14:53 ↗ discussion about a. 1% sales tax

14:57 ↗ increase um and that I I realize that

15:00 ↗ that is also not going to be reflected

15:02 ↗ in the budget but can you tell me the

15:05 ↗ sequence of events that we will go

15:07 ↗ through in order to look at that and

15:09 ↗ then how would it be incorporated into

15:11 ↗ this new budget uh if if it were to

15:15 ↗ pass yeah so the events as far as did

15:18 ↗ you want the schedule I'm sorry for the

15:21 ↗ TBD well what comes be uh when do we

15:25 ↗ when are we going to be taking that vote

15:28 ↗ and when is doesn't get incorporated

15:29 ↗ into the new budget because it's not

15:31 ↗ reflected in the current uh this current

15:35 ↗ proposal and so but I know that we've

15:38 ↗ got that vote coming up so how does that

15:40 ↗ happen that we put a new Revenue Source

15:43 ↗ in if if we do put a new Revenue Source

15:46 ↗ in how will that happen do we pass this

15:49 ↗ budget and then change it again or uh

15:52 ↗ how does that how does that Susie

15:54 ↗ Susie's nodding her head so I'll let her

15:57 ↗ explain sorry I was getting eager um

16:00 ↗ thank you for that question it's helpful

16:01 ↗ uh context for this process as well so

16:05 ↗ uh the TBD the proposed .1% TBD sales

16:09 ↗ tax will be coming back to Council in

16:12 ↗ November um and then following that

16:15 ↗ first touch Point um well not first but

16:18 ↗ the first this fall touch Point um it

16:20 ↗ will then follow a parallel path with

16:23 ↗ the midb Anum adjustments through the

16:25 ↗ end of the year so they'll both coming

16:26 ↗ be coming back in the same night for PR

16:29 ↗ for a a public hearing and then um

16:32 ↗ proposed adoption for uh it'll come to a

16:35 ↗ vote let me put it that way um at the

16:37 ↗ same December 4th meeting so should the

16:40 ↗ council approve the TBD sales tax we

16:43 ↗ would come back uh it would be effective

16:45 ↗ in April so we would come back in q1 of

16:49 ↗ 2024 uh to put those into the budget

16:52 ↗ both the anticipated revenue and the

16:54 ↗ projects that it would

16:56 ↗ fund okay thank you very very much

16:59 ↗ that's much clearer thank you C

17:02 ↗ administrator uh perhaps um council

17:05 ↗ president members of the council good

17:06 ↗ evening uh perhaps I should have said

17:08 ↗ this as a uh introductory comment uh

17:10 ↗ this is not a new

17:12 ↗ budget all we are doing is in essence

17:14 ↗ proposing amendments and so we have

17:17 ↗ tried you know we've talked internally

17:19 ↗ about the best way to do this in many

17:22 ↗ communities uh it's one presentation

17:25 ↗ we're done and the council adopts it we

17:27 ↗ felt that since this was our first time

17:29 ↗ we needed to take a couple steps back

17:31 ↗ and kind of give you what would be the

17:33 ↗ quote unquote normal uh information that

17:35 ↗ you would get in the budget uh but it's

17:37 ↗ not a budget so U we want to be

17:41 ↗ respectful of your questions of course

17:43 ↗ but we did not look at this is opening

17:45 ↗ everything up and starting again we

17:46 ↗ looked at this as just you know changes

17:49 ↗ we felt were necessary at the mid bium

17:52 ↗ um so hope that your questions and the

17:55 ↗ discussion is within that framework

17:57 ↗ versus this is

18:01 ↗ okay sounds

18:05 ↗ good go to the next slide and know we we

18:07 ↗ talked about this the year-over-year

18:08 ↗ comparison and re and again you can see

18:10 ↗ up down up down up down so it's very

18:13 ↗ cyclical we had a lot of large

18:15 ↗ transactions that's in the blue shade

18:17 ↗ again that's on the commercial side

18:18 ↗ especially but we had some large real

18:19 ↗ EST or residential transactions as well

18:21 ↗ that we have not seen this year so far

18:23 ↗ but again 2024 is a question

18:27 ↗ mark and the proposed expenditure

18:29 ↗ adjustments is the next section Public

18:32 ↗ Safety proposed adjustments and add two

18:35 ↗ Corrections corporals

18:37 ↗ 256,000 at one dispatcher position

18:40 ↗ 114,000 shift the current part-time ptnr

18:43 ↗ evidence Tech to 30-hour part-time

18:45 ↗ regular position install jail

18:48 ↗ cameras and we also added a provision to

18:51 ↗ increase jail medical and transportation

18:53 ↗ this is pretty much a contingency we've

18:56 ↗ had um higher than EXP expected medical

18:59 ↗ and other assistance needed at the jail

19:01 ↗ this year we wanted to make sure that

19:03 ↗ we're at least budgeting accurately next

19:05 ↗ year so we might not need this whole

19:07 ↗ amount but we wanted to put this into to

19:08 ↗ make sure realistically um for

19:15 ↗ 2024 did you have any questions on

19:17 ↗ police we can have the chief answer if

19:19 ↗ you had any questions right now I don't

19:20 ↗ see any at this time thank you thank

19:23 ↗ you Parks Community Services proposed

19:26 ↗ adjustments so eliminating the parks

19:29 ↗ planning and project administrator

19:30 ↗ position and we did speak to to Jeff

19:33 ↗ about this position and they agreed um

19:36 ↗ to reduce this position but also we

19:38 ↗ looked at the summer camp and swim

19:41 ↗ lesson programming and so this is

19:43 ↗ something where there's a demand in the

19:44 ↗ community this would increase that

19:46 ↗ programming but there's a revenue offset

19:48 ↗ the revenue is generated by those

19:49 ↗ program fees so more programs means more

19:51 ↗ Revenue coming in it's a revenue that

19:54 ↗ net is about 71,000

19:56 ↗ Rue any questions on these for

20:04 ↗ Jeff so other proposed adjustments the

20:08 ↗ solid program Solid Waste program

20:10 ↗ analyst this would be a position housed

20:12 ↗ in public works with sustainability

20:14 ↗ funding so this would not come out of

20:15 ↗ the general fund and this would be to

20:17 ↗ address any rology related items and and

20:20 ↗ manage the rology contract with the city

20:23 ↗ so again this expenditure would not hit

20:24 ↗ the general fund shift it also shift

20:27 ↗ Limited term Economic Development

20:29 ↗ coordinator to an ongoing FTE position

20:31 ↗ this is already an existing position in

20:33 ↗ Economic Development and again this

20:35 ↗ would be um from one time to an ongoing

20:38 ↗ expenditure so this is an existing FTE

20:41 ↗ that would just carry on in 24 to 25

20:44 ↗ executive position cost allocation so

20:47 ↗ what we did was we looked holistically

20:48 ↗ at how we charge out um the executive

20:52 ↗ positions because we charge out some of

20:53 ↗ the time for finance and Human Resources

20:56 ↗ as well to different funds so we looked

20:59 ↗ at the amount of time on average spent

21:02 ↗ um not just the general fund but say

21:04 ↗ utilities water sewer Wastewater

21:07 ↗ affordable housing now looked at that

21:08 ↗ position cost allocation and um it's

21:11 ↗ different for some positions for example

21:14 ↗ Andreas Snider's position is more on

21:16 ↗ public works because she's overseeing

21:18 ↗ public works so looking at those charge

21:20 ↗ outs so was about 324,000 savings to the

21:22 ↗ general fund and then um the request

21:25 ↗ from Council for the restore is History

21:28 ↗ Museum the trolley detection equipment

21:30 ↗ that's 30,000 that is in the budget and

21:32 ↗ liability insurance increase and so this

21:35 ↗ is one I know we've had some questions

21:36 ↗ on this our insurance is increasing each

21:39 ↗ year we're part of the wcia insurance

21:41 ↗ pool with the rest of the with many many

21:44 ↗ agencies in the state they're also

21:46 ↗ experiencing these increases it's just

21:48 ↗ the nature of the market you're probably

21:49 ↗ even seeing it with your personal

21:50 ↗ insurance I know my auto insurance just

21:52 ↗ went up for the same reasons explanation

21:54 ↗ about the the climate out there and so

21:56 ↗ we are anticipating an increase annually

21:59 ↗ um a large increase each year going

22:01 ↗ forward so 24 would be the first year

22:03 ↗ but definitely when we talk about next

22:05 ↗ year we're looking at this increase

22:06 ↗ another increase

22:10 ↗ coming we've got a question Deputy

22:12 ↗ council

22:15 ↗ president

22:16 ↗ um quick clarifying question I know I've

22:19 ↗ asked this before um and I've already

22:21 ↗ forgot the answer so the solid waste

22:23 ↗ program analyst remind me is this in

22:26 ↗ place of the position as part of our

22:29 ↗ contract with Recology or is this to

22:32 ↗ manage the contract with Recology on our

22:34 ↗ side so longterm it would manage the

22:37 ↗ yeah going forward it would manage the

22:38 ↗ contract going forward we have a

22:40 ↗ consultant right now we've contracted

22:42 ↗ out to a consultant for some of that

22:43 ↗ Management Services this would be

22:45 ↗ brought in house it be entirely this

22:48 ↗ position but does it replace the

22:50 ↗ position that we negotiated as part of

22:52 ↗ the

22:53 ↗ contract U Deputy council member of the

22:56 ↗ council no the the position position uh

22:58 ↗ at rology remains uh I think you are all

23:01 ↗ aware that we continue to struggle uh

23:04 ↗ with rology and their ability to uh uh

23:07 ↗ operate within the terms of the

23:08 ↗ agreement so we looked at the uh uh

23:12 ↗ resources we were putting toward uh

23:14 ↗ Solid Waste Management so not only the

23:16 ↗ contract uh but other programs and

23:18 ↗ services some of which have been handled

23:20 ↗ by a consultant and the recommendation

23:22 ↗ of the administration is that we

23:24 ↗ consolidate those to a full-time staff

23:27 ↗ member um as I think you recall as the

23:30 ↗ lead for cities evaluation that was done

23:32 ↗ the the one thing that we were dinged on

23:35 ↗ quite honestly was that we were not more

23:37 ↗ aggressive in our day-to-day management

23:40 ↗ of of the source uh uh Source uses of uh

23:45 ↗ of waste I'm term

23:48 ↗ I'm uh the the verion rate the the

23:51 ↗ quality of the materials that were going

23:53 ↗ in uh so again with all those things

23:55 ↗ taken together it's our recommendation

23:57 ↗ that

24:00 ↗ council member

24:03 ↗ hunt uh I had a similar question on that

24:06 ↗ one

24:07 ↗ so um I I understand the need for the

24:11 ↗ position as far as managing the contract

24:14 ↗ but we did have in the Recology contract

24:18 ↗ a full-time waste zero specialist and we

24:20 ↗ also in that contract had increased

24:23 ↗ Outreach to Residents and expanded

24:25 ↗ customer service hours um

24:29 ↗ and so I think my the question would be

24:33 ↗ are we thinking that this position would

24:36 ↗ take on some of th those

24:38 ↗ responsibilities in which case um would

24:41 ↗ there be an opportunity to go back to

24:43 ↗ Recology and discuss the contract

24:48 ↗ terms I I think there are lots of issues

24:51 ↗ uh with the Recology contract uh our

24:54 ↗ recommendation would be we let's go

24:56 ↗ forward uh with this position position

24:58 ↗ and if we see that there's duplication

25:00 ↗ then I think it might very well be

25:01 ↗ appropriate to have a future discussion

25:04 ↗ about that um I think we just been very

25:06 ↗ disappointed uh we've been getting lots

25:08 ↗ of Resident feedback um and uh we're

25:12 ↗ trying to address that best

25:16 ↗ week okay thank

25:19 ↗ you okay thanks I

25:23 ↗ could thank you council member Joe thank

25:25 ↗ you uh with respect to the solid waste

25:27 ↗ program analyst I'll just add that it's

25:30 ↗ very helpful to have an advocate on City

25:34 ↗ staff to work with citizens when they're

25:37 ↗ calling in um it's been my experience

25:40 ↗ that the solid waste

25:41 ↗ providers uh only get their feet held to

25:44 ↗ the fire if there's a city person on our

25:47 ↗ side asking those questions so um the

25:50 ↗ budget expenditure from my point of view

25:53 ↗ is well worth it when we're getting

25:56 ↗ calls from citizens and hey

25:58 ↗ myology um fees went up and they're not

26:02 ↗ picking up my garbage so we got to be on

26:04 ↗ the other side of that as advocate for

26:06 ↗ the assistance make sure that um

26:07 ↗ Recology is being held to do what they

26:10 ↗ said they were going to do in their

26:11 ↗ contract so just a little additional

26:14 ↗ information from the provider

26:17 ↗ side okay

26:20 ↗ thanks these are previously approved

26:22 ↗ adjustments the capital project threw up

26:24 ↗ to the CIP the addition of two

26:27 ↗ Behavioral Health positions and the

26:29 ↗ Metroflex shuttle

26:34 ↗ expense also the public works department

26:37 ↗ positions that were added earlier this

26:38 ↗ year those four positions and then the

26:40 ↗ one-time Public Works Professional

26:46 ↗ Services the

26:48 ↗ 2024 Capital true up 44 projects were

26:52 ↗ adjusted between the adopted budget and

26:53 ↗ the 2429 Capital Improvement plan the 20

26:56 ↗ projects were unchanged

26:58 ↗ three projects were added to the 2429

27:00 ↗ CIP that were anticipated to be funded

27:03 ↗ by the proposed but they're not included

27:04 ↗ in the proposed mid buum adjustments as

27:06 ↗ Susie explained a little

27:14 ↗ bit and so impact to general fund

27:17 ↗ balance I know this is a little bit hard

27:19 ↗ to see it's probably a little easier in

27:21 ↗ your

27:22 ↗ packets but the beginning fund balance I

27:24 ↗ just we're operating again with that

27:27 ↗ unending end excuse me ending

27:30 ↗ undesignated fund balances percentage of

27:32 ↗ expenditures the council policy is

27:33 ↗ between 10 and 15% so we're making

27:37 ↗ adjustments that are within those

27:39 ↗ guidelines you can see with the 2023

27:42 ↗ proposed mid Bal adjustments we started

27:45 ↗ 23 the beginning fund balance 35.3 we

27:48 ↗ would

27:49 ↗ end at about 11% of Undead into fund

27:53 ↗ balance of these 2024 through 2024 the

27:56 ↗ proposed mid Bal adjustments are adopted

27:59 ↗ but this also includes the um decreases

28:03 ↗ in Revenue projections as we talked

28:05 ↗ about a little bit

28:07 ↗ before in 2024 another note we see the

28:10 ↗ arpa expenditures that is the last year

28:12 ↗ of

28:17 ↗ arpa any questions on this

28:25 ↗ slide so the five-year forecast and we

28:27 ↗ showed this before we just adjusted

28:29 ↗ these with the proposed uh adjustments

28:33 ↗ and again this does not include the TBD

28:35 ↗ sales

28:36 ↗ tax as it has not passed yet and you can

28:40 ↗ see now our 2023

28:42 ↗ forecast we've balanced between revenues

28:45 ↗ and

28:46 ↗ expenditures 2024 you can see there's

28:49 ↗ still um expenditures

28:52 ↗ for arpa that's part of that fund

28:55 ↗ balance plus the mid Bal adjustment but

28:57 ↗ again we're still at 11% of fund balance

28:59 ↗ so that's within the council Target and

29:02 ↗ again with that forecast you can see as

29:03 ↗ we've discussed before when you get to

29:06 ↗ 26 and

29:07 ↗ 27 if everything held constant every

29:10 ↗ fixed cost was the same which again it's

29:12 ↗ not because it's just a forecast going

29:14 ↗ five years you are seeing an imbalance

29:16 ↗ and out years between revenues and

29:24 ↗ expenditures any questions on the

29:26 ↗ slide

29:28 ↗ council member

29:30 ↗ thanks we've talked briefly at times

29:33 ↗ about sort of the structural problem

29:36 ↗ with uh property tax and the 1% increase

29:40 ↗ and you know fact that particularly Now

29:42 ↗ with uh inflation well beyond 1% what's

29:47 ↗ what is what's the prognosis from your

29:50 ↗ perspective if we look out five years

29:52 ↗ how bad is it going to be from a uh how

29:56 ↗ big of an impact is proper property tax

29:57 ↗ going to have on our Revenue side of the

30:00 ↗ equation so we are actually not that's a

30:02 ↗ very good question we are not impacted

30:05 ↗ by property tax as much as some other

30:07 ↗ communities because again we have a more

30:09 ↗ we have a broader tax base so you think

30:11 ↗ of sales tax utility tax utility tax

30:14 ↗ especially is a key driver of the

30:15 ↗ increases we're anticipating um into the

30:18 ↗ future and so we are not anticipating a

30:20 ↗ lot large amount of growth in property

30:21 ↗ tax at all even if we got 3% it's just

30:25 ↗ 3% right uh we're not unless unless

30:27 ↗ there's developments so right now we're

30:29 ↗ not assuming any large developments on

30:30 ↗ the horizon but if there were

30:32 ↗ developments or there was newly assessed

30:34 ↗ construction say infill within the city

30:36 ↗ that would impact that number um but

30:39 ↗ again it is not our our number one

30:40 ↗ Revenue source so it's not as we're not

30:42 ↗ as dependent as say a city like samamish

30:45 ↗ or Newcastle that's more dependent on

30:47 ↗ property taxes than we are great

30:54 ↗ thanks and again the forecast also

30:56 ↗ doesn't assume assume an economic downt

30:58 ↗ Beyond 2024 but like I said before it

31:02 ↗ assumes and is just holding revenues and

31:04 ↗ expenditures status quo through those

31:09 ↗ periods and so the next

31:11 ↗ steps the midby city council touch

31:14 ↗ points again tonight the staff

31:16 ↗ presentation of the proposed adjustments

31:18 ↗ November 20th is a regular meeting and

31:20 ↗ that's when the public hearings will be

31:22 ↗ conducted and the 2024 property tax levy

31:25 ↗ so again we not required by law to do a

31:28 ↗ b a annual budget anymore we have the

31:30 ↗ biannual budget but you're still doing

31:32 ↗ property tax every year for the law and

31:35 ↗ December 4th is a regular meeting final

31:37 ↗ Council deliberations and anticipated

31:44 ↗ adoption and that's

31:47 ↗ all excellent okay so we have an

31:51 ↗ opportunity for Council question and

31:53 ↗ answer and then

31:56 ↗ Community uh public comment and then um

31:59 ↗ any kind of deliberation feedback um

32:04 ↗ which we're obviously not taking any

32:06 ↗ action on this tonight um but feedback

32:09 ↗ and uh all of that are important so

32:12 ↗ let's start with any Council

32:18 ↗ questions council member

32:22 ↗ marks there we go uh Mr hammud how what

32:26 ↗ metric trick should we use um to sort of

32:31 ↗ address pracy like if somebody said uh

32:35 ↗ this is a spendthrift budget um and

32:37 ↗ these amendments

32:40 ↗ aren't you know this is my first time

32:43 ↗ doing a midyear um budget so I was used

32:46 ↗ to every year uh taking a look the

32:48 ↗ metric I personally liked was uh real

32:51 ↗ dollars per capita right and saying what

32:53 ↗ what's our expenditure in major areas in

32:55 ↗ real dollars per capita over last 10 15

32:57 ↗ years and that would allow me to see the

32:59 ↗ trend line and see how we are operating

33:01 ↗ how is one to uh apply what test can one

33:04 ↗ apply or or how would

33:07 ↗ you review these if if a resident came

33:09 ↗ up and said you're just you're spending

33:11 ↗ money like it's you know Christmas year

33:13 ↗ round what do you how do you answer

33:16 ↗ that um I think part of that is the

33:19 ↗ performance measures that's been

33:20 ↗ reported to the before as far as

33:22 ↗ tracking the performance of these

33:23 ↗ positions we're actually specifically

33:25 ↗ looking at these new positions we have a

33:27 ↗ new tracking system for these for these

33:29 ↗ opportunities going forward um but also

33:32 ↗ um the efficacy I know I can't really

33:34 ↗ speak for the Departments but we have

33:35 ↗ the chief here and Jeff here that could

33:37 ↗ speak to the the impact that they're

33:40 ↗ projecting and anticipating for those

33:42 ↗ additional positions in this budget

33:46 ↗ amendment perhaps I can elaborate a

33:48 ↗ little bit um we are amending this

33:50 ↗ budget much too much that uh in an ideal

33:54 ↗ circumstance there'd be little nibs

33:56 ↗ around the edges

33:57 ↗ uh the adjustment of the economic

33:59 ↗ development

34:00 ↗ specialist

34:03 ↗ um very little things but there are

34:05 ↗ three components uh to this budget

34:08 ↗ amendment that are unique and different

34:10 ↗ uh and I guess I'll let the council

34:12 ↗ decide how you evaluate that uh the

34:14 ↗ first is we came to you early in the

34:16 ↗ year uh with Public Works changes that

34:18 ↗ we knew that the staffing issues that we

34:21 ↗ were having were significant we knew

34:22 ↗ that the council's priorities for

34:24 ↗ Capital budgeting could not wait till

34:27 ↗ mid year so uh the first part of this is

34:30 ↗ that uh the second part is police uh we

34:33 ↗ are very concerned about the operation

34:34 ↗ of our jail um the we have talked about

34:38 ↗ it here a couple of different times

34:39 ↗ leading up to uh this evening uh but the

34:42 ↗ changes the additional positions you're

34:43 ↗ seeing in the jail are not normal uh

34:46 ↗ they're not something that you would

34:47 ↗ normally see in a midb Anyan budget but

34:49 ↗ we have brought them to you today

34:51 ↗ because of our concern uh about the safe

34:54 ↗ operation of the jail and any future

34:55 ↗ liability uh to the city if we are not

34:58 ↗ operating the jail uh to that level

35:01 ↗ Chief is here and can speak to more

35:04 ↗ specifics on that um the the third issue

35:09 ↗ uh I think is the recreation issue and

35:12 ↗ as I've talked with members of the city

35:13 ↗ council uh broadly about where we are as

35:16 ↗ a city uh I've heard more and more from

35:18 ↗ you concerned about our Recreation

35:20 ↗ program uh why do we have a summer camp

35:22 ↗ uh that if you don't register in the

35:24 ↗ first eight minutes your child does not

35:25 ↗ get Summer Camp uh and so in sharing

35:28 ↗ that with director Watling he said okay

35:30 ↗ that is a challenge that is something

35:32 ↗ that he did not feel comfortable waiting

35:34 ↗ in additional year uh to bring forward

35:36 ↗ to the council and he and his team uh

35:39 ↗ have come forward this evening not only

35:40 ↗ with summer camp but also with pool so

35:42 ↗ we're seeing uh issues you as council

35:44 ↗ members are hearing about it for members

35:46 ↗ of the community uh again not something

35:48 ↗ you would normally see in a midb budget

35:50 ↗ so those three issues I think make this

35:53 ↗ abnormal uh but also I think we need to

35:55 ↗ be flexible enough to be responsive to

35:58 ↗ community needs so there's nothing um

36:01 ↗ you know we're not adding money for

36:02 ↗ travel we're not adding money uh for new

36:05 ↗ office furniture uh so I think as a

36:07 ↗ measure of this midby and budget

36:09 ↗ adjustment it is different it is

36:11 ↗ different than what you might see in

36:12 ↗ other communities but I think in the

36:14 ↗ three areas I've identified um make it

36:17 ↗ justifiable and mayor Paulie feels

36:18 ↗ veryable coming to the council with City

36:21 ↗ administrator thank you very much for

36:23 ↗ that extremely helpful and comprehensive

36:25 ↗ response

36:27 ↗ Council M Ray thank you well you just uh

36:30 ↗ kind of piqued my interest because one

36:32 ↗ of the things we saw in the increase in

36:34 ↗ expenditure for uh Parks and Recreation

36:37 ↗ was an offsetting Revenue Source um do

36:40 ↗ we have a similar kind of offsetting

36:42 ↗ Revenue Source projection for the jail

36:44 ↗ since we're we're going to be investing

36:46 ↗ heavily in it and we do um Outsource or

36:51 ↗ uh provide jail services to a number of

36:53 ↗ other communities um and and kind of

36:55 ↗ what does that look like and how much of

36:57 ↗ these increased costs are we going to be

36:59 ↗ able to offset with increased revenue

37:01 ↗ from um our partner

37:07 ↗ communities oh thank you so yes we do

37:11 ↗ have some updated so we contract with 19

37:14 ↗ different cities and in those cities we

37:16 ↗ have put an increase or budget to advise

37:18 ↗ them there will be a cost increase about

37:21 ↗ 5% I believe is what we put um that

37:23 ↗ we've already U proposed to them in

37:25 ↗ August so they are aware that that is

37:27 ↗ coming that is one um of the differences

37:30 ↗ or pieces that we've put in place as far

37:32 ↗ as the jail goes um another part is that

37:35 ↗ we're also on a regular basis looking

37:36 ↗ for other opportunities within the

37:39 ↗ community we've talked about the

37:41 ↗ possibility of even a traffic school

37:43 ↗ moving forward and so those are

37:45 ↗ different things that we're um coming up

37:46 ↗ with as far as some of those positions

37:50 ↗ but supervisory in the jail is a as a

37:52 ↗ big function that is going to be more

37:54 ↗ necessary with um recent events

38:00 ↗ just let me to follow up with that a

38:01 ↗ little bit so I I I haven't done the

38:03 ↗ math I'm just kind of looking at the

38:04 ↗ numbers here we got about three4 of a

38:06 ↗ million dollars in additional jail

38:08 ↗ funding between the three lines of uh

38:10 ↗ Corrections

38:12 ↗ Corporal cameras and then uh increased

38:15 ↗ jailen mate

38:17 ↗ Transportation how much are we looking

38:19 ↗ at in terms of what's what's five 5%

38:22 ↗ increase translated into uh new

38:25 ↗ dollars I don't have those exact numbers

38:27 ↗ um right in front of me but I understand

38:30 ↗ your concern the one proposed um that

38:32 ↗ was at the bottom was just because of

38:34 ↗ medical cost has Transportation like we

38:36 ↗ had said that's um for facilities and

38:39 ↗ things that we can't um provide here and

38:42 ↗ that's just a small number to where if

38:44 ↗ we didn't have our own jail that would

38:45 ↗ be exorbitantly amount more than what we

38:48 ↗ do now um and so that's one of the

38:50 ↗ biggest pieces of that um when someone

38:52 ↗ has a mental health um issue or concern

38:55 ↗ that we can't hand handle inhouse then

38:57 ↗ we take them to one of the facilities

38:59 ↗ that's larger that can and that's a big

39:02 ↗ part of that and that is the

39:03 ↗ transportation back and forth from that

39:05 ↗ as well and that's just something that's

39:07 ↗ not predictable

39:08 ↗ but but to answer your question I don't

39:11 ↗ have those exact numbers but we can get

39:12 ↗ them for

39:13 ↗ you yeah I mean and I'm I got to tell

39:15 ↗ you I'm really super supportive of all

39:17 ↗ three of these line items I just want to

39:19 ↗ know what our recovery looks like and

39:21 ↗ and I'm really happy that we have a jail

39:23 ↗ and I'm really happy that we can be a

39:24 ↗ regional provider I just don't want to

39:26 ↗ be a reg

39:28 ↗ subsidizing jail services so if we're if

39:31 ↗ we're increasing our cost I'd like to

39:32 ↗ see a commensurate cost to our partners

39:34 ↗ that's all I'm looking for so that

39:36 ↗ numbers be great but more importantly

39:37 ↗ it's the kind of the uh the philosophy

39:40 ↗ of how do we make sure that um we're

39:43 ↗ it's a shared uh shared

39:45 ↗ love and one one of the additional

39:48 ↗ challenges is that Marketplace that we

39:50 ↗ find ourselves in and that we want to

39:52 ↗ make sure uh that we are charging uh

39:56 ↗ Market rates um but there are

39:59 ↗ communities that are beginning to come

40:00 ↗ into the region to undercut us um one of

40:03 ↗ the communities that we currently work

40:05 ↗ with

40:06 ↗ isami correct um and they have entered

40:08 ↗ into an agreement with the city of Sunny

40:11 ↗ Sunny sunnide uh Sunnyside is in Yakama

40:15 ↗ County uh they have contracted to uh

40:18 ↗ have inmates uh travel the two two and a

40:21 ↗ half hours uh from instead of coming to

40:24 ↗ this Jail uh and are look look at Daily

40:27 ↗ rates that are half of what we're

40:29 ↗ charging it's more for longterm like

40:31 ↗ someone that's sentenced um and that

40:33 ↗ used to be something they did before but

40:36 ↗ there's yeah so you get both sides of it

40:38 ↗ and so we're kind of a sweet spot in the

40:40 ↗ middle you have other ones that charge

40:41 ↗ an exorbitant almost the same as the

40:43 ↗ daily rate um I won't name names but

40:46 ↗ there is an agency that charg a booking

40:47 ↗ fee so just to put something someone

40:49 ↗ into that space cost the same date as a

40:52 ↗ doll daily rate so it's double the pay

40:54 ↗ just to put them into the facility and

40:56 ↗ so yes we we're that trying to find that

40:59 ↗ happy medium but also staying within

41:01 ↗ Market range uh and we're right right

41:03 ↗ there in that sweet spot in the middle

41:04 ↗ as it is right now and we do have other

41:06 ↗ people that are also looking to contract

41:08 ↗ with us that is another part that we've

41:10 ↗ given some quotes at that will help also

41:11 ↗ bridge that Gap some I really appreciate

41:14 ↗ it thank

41:19 ↗ you okay looking around we've had some

41:23 ↗ great questions um going to look over

41:26 ↗ for council member D Michelle see if I

41:28 ↗ see anything there no Deputy council

41:31 ↗ president um doesn't need to be

41:33 ↗ comprehensive in any way shape or form

41:35 ↗ and um City administrator kind of

41:37 ↗ touched on this a little bit but I'm

41:38 ↗ just curious this is our first midby um

41:41 ↗ at a high level kind of what are the

41:43 ↗ things that we're learning in going into

41:45 ↗ our retreat in in January or in the

41:47 ↗ coming months will be when we're looking

41:49 ↗ at the next biannual budget I'm sure

41:51 ↗ there'll be a whole review of kind of

41:54 ↗ what we've learned but some what are

41:55 ↗ some of kind of the high High Lev things

41:57 ↗ that we've learned about the bional

41:59 ↗ budget process that are kind of

42:00 ↗ informing next

42:02 ↗ steps i' put that question to council

42:04 ↗ but but part of it is um you know what

42:07 ↗ do we miss what do we miss in that

42:09 ↗ two-year plan and these are like well to

42:13 ↗ City administrator Bob KT's comments

42:15 ↗ about three major things those are the

42:17 ↗ items that we're looking for to try to

42:18 ↗ think ahead but things always happen and

42:20 ↗ so this process is part of what did we

42:22 ↗ miss during the year that we need to we

42:24 ↗ need to bring back to council because

42:26 ↗ again it's two years is a long period of

42:28 ↗ time but also that's the spending plan

42:30 ↗ we're trying to get to the point of

42:32 ↗ instead of looking every year we're

42:34 ↗ looking at the two-year and the fiveyear

42:36 ↗ again two-year being the shorter term

42:38 ↗ fiveyear being the longer term and

42:39 ↗ trying to plan towards that so again

42:41 ↗ also having departments looking at those

42:43 ↗ spending plans for two years and kind of

42:44 ↗ think holistically of not just what they

42:47 ↗ need for the current upcoming year but

42:49 ↗ for the second year so I think those are

42:50 ↗ the things that we're really trying to

42:52 ↗ develop as a habit going forward and

42:54 ↗ lessons learned about you know how you

42:55 ↗ look at your budget a little differently

42:57 ↗ even internally as a department head for

43:00 ↗ a two-year budget compared to a one-year

43:04 ↗ budget council member

43:07 ↗ Joe thank

43:08 ↗ you uh director hammud I wonder if you

43:11 ↗ could um comment a little bit on the

43:13 ↗ arpa expenditures we see

43:16 ↗ 4.7 million in 2023 and 4.1 in

43:21 ↗ 2024 um my concern is um if you are

43:25 ↗ hearing anything about what what we

43:26 ↗ would typically call a fiscal cliff in a

43:29 ↗ sense the federal government has put out

43:31 ↗ this money for cities and local

43:32 ↗ jurisdictions to spend and it's going to

43:34 ↗ run out in 2024 are you seeing any

43:37 ↗ impacts from uh potentially running out

43:40 ↗ of federal funds in this particular

43:43 ↗ bucket so to speak or are there other

43:45 ↗ buckets out there that are going to fill

43:47 ↗ it in or are we going to have um you

43:49 ↗ know a fiscal cliff of some sort or a

43:50 ↗ Slowdown from what you're seeing out

43:52 ↗ there thank yes so council member Joe we

43:55 ↗ as a city vqu mes is an organization

43:58 ↗ that we budgeted shortterm with those

44:00 ↗ funding so they weren't to offset

44:02 ↗ ongoing expenditures some cities did it

44:04 ↗ differently but that's the decision we

44:06 ↗ made here so for us we're not facing a

44:07 ↗ fiscal cliff with that because there

44:09 ↗ were specific projects and specific

44:11 ↗ items that were not going past

44:17 ↗ 2024 um I would also just add we've been

44:20 ↗ really monitoring the federal situation

44:22 ↗ lately um so depending on what happens

44:25 ↗ in Congress over the next period of Time

44:28 ↗ ahead of our next budget we've been

44:30 ↗ keeping very close watch on if there's

44:32 ↗ any talk about that affecting arpa

44:35 ↗ dispersements um for now the primary

44:37 ↗ reason we have those um those

44:40 ↗ expenditures ending in 24 is they have

44:42 ↗ to be tied to a project they need to be

44:44 ↗ encumbered by the end of 24 um there's a

44:47 ↗ real POS but they can still be spent by

44:49 ↗ the end of

44:51 ↗ 26 um so um there's a real possibility

44:55 ↗ that by the end end of you know

44:56 ↗ throughout 25 and 26 we're still going

44:58 ↗ to be expending those last dollars but

45:00 ↗ we've already received our full

45:03 ↗ dispersement I appreciate that comment

45:06 ↗ and um i' also appreciate the general

45:09 ↗ budget rule or standard that we take in

45:12 ↗ the sense when we get grant money or

45:14 ↗ when we get arpa funding from the

45:16 ↗ federal government other Federal funding

45:17 ↗ we don't put it toward a staff position

45:20 ↗ or something that's more permanent but I

45:22 ↗ appreciate the the conservative

45:24 ↗ budgeting that your depart is done thank

45:26 ↗ you thank

45:29 ↗ you okay council member

45:33 ↗ hunt um we have talked previously about

45:36 ↗ the need for the additional uh Parks or

45:39 ↗ the um concerns about the capacity of

45:42 ↗ the parks programs and that they sell

45:43 ↗ out within a few minutes of opening um

45:46 ↗ one other conversation that we've had

45:47 ↗ recently is about the permitting um and

45:51 ↗ the uh meeting our goals on permitting

45:54 ↗ process and the potential for there are

45:56 ↗ being needs of that department to meet

46:00 ↗ the goals that we've set forward and

46:01 ↗ that the community um would would expect

46:05 ↗ and so I'm wondering if that does result

46:08 ↗ in um in a need that impacts the budget

46:13 ↗ um what that would look like and would

46:14 ↗ we would we just make another amendment

46:17 ↗ or what we would foresee as the best way

46:19 ↗ to address

46:21 ↗ that uh thank you council member hunt

46:23 ↗ members of the council uh we have worked

46:25 ↗ close ly with director Dolly wall and

46:27 ↗ her leadership team um at this point we

46:30 ↗ believe we have the appropriate

46:32 ↗ resources we just need to manage those

46:33 ↗ resources

46:35 ↗ better great thank you um and then one

46:38 ↗ other process question um in community

46:41 ↗ comment this this evening there was a

46:43 ↗ question about um tracing the CIP

46:47 ↗ projects through the budget and um we do

46:50 ↗ have a true up step here and a number of

46:53 ↗ projects that are listed as being cheed

46:56 ↗ up and that we had those previous

46:57 ↗ conversations but I'm wondering if you

46:59 ↗ can if um if you could perhaps describe

47:04 ↗ um how that works and how we should

47:06 ↗ think about the CIP which is on a

47:08 ↗ different Cadence than the budget and

47:10 ↗ now we're on a biannual budget and how

47:12 ↗ we how we should think about sequencing

47:14 ↗ those thank

47:16 ↗ you absolutely um really good question

47:20 ↗ as we're in the middle of a midby um and

47:23 ↗ it since it is our first midby we're

47:25 ↗ navigating what it means to do a CIP at

47:27 ↗ the beginning um kind of in the middle

47:29 ↗ after we've already adopted the two-year

47:31 ↗ budget um with that project in

47:33 ↗ particular um it's it's even trickier in

47:36 ↗ that those funds were already budgeted

47:38 ↗ um and they've just been reauthorized

47:40 ↗ into 23 24 um so there is an opportunity

47:45 ↗ should Council wish

47:47 ↗ to adjust names or um those mechanics

47:51 ↗ that is an option during the midby um

47:55 ↗ but generally it's it's a little out of

47:57 ↗ practice for where we are in the process

47:59 ↗ as it is uh more of a 22 expenditure

48:02 ↗ that we reauthorized into 23 24 that's

48:05 ↗ why it's still tied to that

48:09 ↗ project uh right so it's still tied to

48:11 ↗ that project also because it's the same

48:13 ↗ project is that correct correct okay

48:16 ↗ thank

48:18 ↗ you I'm GNA continue on that question so

48:22 ↗ you've included attachment C in the

48:25 ↗ packet which um goes over the 2024

48:28 ↗ Capital project summary and in that I

48:32 ↗ see three columns one for 2024 adopted

48:36 ↗ expenditures one for 2024 CIP

48:39 ↗ expenditures and then a column that says

48:42 ↗ difference between 2024 budget and CIP

48:46 ↗ can you tell me not on an individual

48:49 ↗ project level but like why are there

48:52 ↗ differences between those and how we

48:54 ↗ should interpret them

48:57 ↗ that absolutely um I will try and keep

49:00 ↗ this as high level as possible um

49:02 ↗ generally uh the CIP for when we're

49:05 ↗ doing it now as the during the first

49:08 ↗ year of the bium it gives us the

49:11 ↗ opportunity to adjust in the same way

49:13 ↗ that we would for an annual budget

49:14 ↗ process for capital projects and those

49:16 ↗ could be adjusted for any number of

49:18 ↗ reasons such as new funding availability

49:20 ↗ or in the case of re now less funding

49:22 ↗ availability um they could also be um

49:26 ↗ delayed for example due to outside

49:28 ↗ sources other organizations that we

49:30 ↗ partner with um could also be we have a

49:32 ↗ better estimate for the project that we

49:34 ↗ may have been uh including it in the CIP

49:36 ↗ or even for 2024 based on our best

49:39 ↗ estimate of the information last summer

49:43 ↗ so as we get new information for costing

49:45 ↗ for scoping we try to keep those as up

49:48 ↗ to- dat as possible so the CIP allowed

49:50 ↗ us to forecast out for those next six

49:53 ↗ years um and really paying attention to

49:56 ↗ those first three years in particular

49:58 ↗ since we'll have another bial budget

49:59 ↗ that's based on that CIP um but there

50:02 ↗ will be another opportunity to adjust

50:03 ↗ those projects as needed um as part of

50:06 ↗ next year's budget process for

50:08 ↗ 2526 the CIP is primarily our planning

50:11 ↗ document for well I'm sorry I keep using

50:13 ↗ that phrase when it comes to the CIP but

50:16 ↗ um it it allows us to do that true up

50:18 ↗ but it's always a little bit of a moving

50:20 ↗ Target as those projects move over

50:23 ↗ time okay let me ask

50:26 ↗ just basic level question let's say I

50:30 ↗ see something that had a 2024 adopted

50:35 ↗ expenditure of x amount and then a blank

50:39 ↗ in the 2024 CIP expenditure and then

50:42 ↗ obviously that amount as the negative in

50:45 ↗ the difference does that that either

50:48 ↗ suggests and maybe I'm totally wrong on

50:50 ↗ this that either the project was

50:52 ↗ completed delayed eliminated ated

50:56 ↗ something like that that basically says

50:59 ↗ we're not spending that money in 2024

51:03 ↗ that's correct

51:08 ↗ okay I'm seeing a bunch of heads down

51:10 ↗ looking at that sheet that I was talking

51:13 ↗ about so appreciate

51:16 ↗ that

51:17 ↗ um okay so to continue kind of down this

51:22 ↗ path on the capital projects because if

51:25 ↗ if I was to I appreciated what city

51:28 ↗ administrator Bob kit said about hey

51:31 ↗ these are the three big buckets but

51:33 ↗ those are very much operations buckets

51:37 ↗ um and so I can see how that works out

51:39 ↗ on the memo you know some additional

51:42 ↗ expenditures we found some other areas

51:45 ↗ of money and it all works out to an even

51:48 ↗ what would be the story told about what

51:53 ↗ the proposed changes are to cap capit

51:55 ↗ and it probably sounds like it's a lot

51:57 ↗ more complex of some things here some

52:00 ↗ things there yeah it's very much a

52:03 ↗ project by project so to give you a

52:05 ↗ great example of where uh we had

52:07 ↗ something budgeted for a project and now

52:09 ↗ it's zero for 24 from the CIP a good

52:12 ↗ example of that is a number of

52:13 ↗ stormwater projects where we had a

52:15 ↗ placeholder for implementation of the

52:17 ↗ storm water master plan and then once

52:20 ↗ that was better defined we were then

52:22 ↗ able to split that bucket project out

52:24 ↗ into indiv idual projects so that's a

52:27 ↗ unique example of why there are some new

52:29 ↗ projects um that came out of the CIP

52:31 ↗ that weren't previously in the budget

52:33 ↗ and why we go from a positive to a zero

52:35 ↗ to a negative impact for those

52:37 ↗ particular projects so it's a long

52:40 ↗ winding story of all of these projects

52:41 ↗ kind of intermixed but one piece that I

52:44 ↗ do want to make very uh clear with

52:47 ↗ capital is that sheet is simply um the

52:50 ↗ only items in that sheet are what was in

52:52 ↗ the CIP so the if there were adjustment

52:55 ↗ ments to the project to a project

52:58 ↗ following even the CIP those were called

53:00 ↗ out within the amendment detail there

53:02 ↗ were a couple of I think Transportation

53:03 ↗ projects like that but otherwise

53:05 ↗ everything is implementing what's in the

53:09 ↗ CIP and I'm just going to take a stab at

53:11 ↗ one more question on that this is a midb

53:14 ↗ Anum budget so obviously we don't want

53:16 ↗ to go in there and like Pick and Pull

53:19 ↗ and all of that so what you're saying is

53:23 ↗ the adjustments that you're showing

53:27 ↗ in um the

53:29 ↗ 2024 mid bym adjustment are because

53:34 ↗ either the CIP split or adjusted

53:37 ↗ projects not because the Administration

53:40 ↗ has chosen to remove something that is

53:44 ↗ correct okay

53:47 ↗ fantastic okay sorry I just had a string

53:50 ↗ of questions there um do we have any

53:54 ↗ other questions questions at this time

53:57 ↗ I'll look

53:59 ↗ over council member Ray I wasn't going

54:02 ↗ to do this but I'm going to do it anyway

54:05 ↗ um so when you were talking about

54:06 ↗ revenue and you were talking about bno

54:08 ↗ is off uh Reed is clearly off uh sales

54:11 ↗ tax is off do you have a sense of how

54:15 ↗ much of these declining revenues are um

54:20 ↗ tied to current interest rates and the

54:23 ↗ impact that's having on both economic

54:25 ↗ expansion as well as mortgage rates and

54:29 ↗ um and consequently house home ownership

54:32 ↗ and buys and sells um I'm I'm just

54:35 ↗ trying to superimpose on this you know

54:37 ↗ we don't have Clarity on what's going to

54:39 ↗ happen with interest rates but um but I

54:42 ↗ I want to get your sense of how

54:44 ↗ important you think interest rates are

54:46 ↗ um if they stay high if they come down

54:49 ↗ how will that affect our Revenue a very

54:51 ↗ good question council member R is there

54:53 ↗ a very direct answer for that it's hard

54:55 ↗ to tell because again the housing market

54:58 ↗ if there is a really direct answer

54:59 ↗ you're going to make a lot of money so I

55:00 ↗ just want to be real clear on

55:01 ↗ that no but but as far as the what we've

55:06 ↗ seen with the construction activity in

55:07 ↗ the city how much of that is interest

55:11 ↗ rates but how much of that is the

55:12 ↗ regional economy as well that's a

55:14 ↗ question I mean we've seen some Regional

55:15 ↗ layoffs that might have impacted things

55:17 ↗ a little bit but as far as the the

55:20 ↗ purchasing power of buyers obviously

55:22 ↗ that's more limited so if you're looking

55:23 ↗ at single family residential and even

55:25 ↗ multi family residential that's probably

55:28 ↗ impacted those markets a bit as far as

55:31 ↗ the large commercial

55:32 ↗ transactions I I don't know to be honest

55:34 ↗ I don't know much about the Dynamics the

55:36 ↗ inw workings of those long-term

55:38 ↗ Investments I mean I've heard different

55:40 ↗ things that interest rates you know

55:43 ↗ don't phase you know large commercial

55:47 ↗ transactions if people are investing for

55:48 ↗ the long term so I'm not sure I will say

55:51 ↗ this I mean we came off it's hard to

55:52 ↗ tell because the city of isqua was was

55:55 ↗ building and building and building and

55:56 ↗ then we finally got to a point where we

55:58 ↗ were slowing down in our building for

56:00 ↗ the first time even through 2008 the

56:02 ↗ city still grew the re still grew

56:04 ↗ through 2008 when the rest of the area

56:05 ↗ was was downturned so it's very very

56:08 ↗ hard to correlate everything because I

56:10 ↗ think inflation also has a factor in

56:12 ↗ people's purchasing power when you look

56:13 ↗ at retail as well that even a 5%

56:16 ↗ inflation compared to 1.6% which is the

56:19 ↗ average pre-co could also be impacting

56:21 ↗ people's purchasing power and spending

56:23 ↗ habits as well so so is you know gas

56:26 ↗ that is now below $5 a gallon but for a

56:29 ↗ good part of the summer is at $5 a

56:30 ↗ gallon how much was that impacted so

56:31 ↗ there's there a lot of factors out there

56:33 ↗ as far as the real estate market itself

56:36 ↗ obviously if the average home price is

56:37 ↗ 1.2 million in isqua and the interest

56:40 ↗ rate that you could get on the open

56:41 ↗ market goes from 3% to 6 to 7% obviously

56:45 ↗ that's probably going to disqualify some

56:49 ↗ buyers so it's complex

56:51 ↗ very a thank you Robert

56:58 ↗ okay so at this point I will continue

57:00 ↗ looking and seeing if I've got any other

57:03 ↗ Council

57:05 ↗ questions and I'm not seeing anything

57:09 ↗ there so um I think we have an

57:11 ↗ opportunity for public comment and then

57:15 ↗ we go into um any kind of feedback and

57:19 ↗ so give me one second clerk do we see

57:22 ↗ anybody online that I should make a

57:24 ↗ statement

57:26 ↗ for uh council president that we have no

57:29 ↗ virtual attendees fantastic we do have

57:32 ↗ an attendee in person so Liz you can

57:34 ↗ come to the microphone press the button

57:37 ↗ and an opportunity to talk thank you I'm

57:40 ↗ very grateful for the record I'm Liz tid

57:42 ↗ and I live here in isqua and I'm really

57:45 ↗ glad I came tonight learned a lot

57:49 ↗ and I really

57:51 ↗ appreciated when I heard and I know I'm

57:54 ↗ addressing count I'm trying to be really

57:55 ↗ careful about that I heard somebody that

57:57 ↗ works for the city say something like

58:01 ↗ you know what aren't we seeing because

58:04 ↗ there's like the big three areas that

58:05 ↗ were addressed and and what isn't there

58:08 ↗ and that happens to be one of my

58:10 ↗ favorite ways to analyze anything what

58:11 ↗ are we not seeing and so I would just

58:14 ↗ like to offer what I'm not

58:17 ↗ seeing and I'm not seeing Human Services

58:21 ↗ and I think that you all know I'm very

58:23 ↗ interested in the meals that happen at

58:25 ↗ the Community Hall and I don't recall if

58:29 ↗ any of us in our public comments have

58:31 ↗ shared with you our back of the envelope

58:33 ↗ numbers you know we expect 30 people a

58:36 ↗ day it's more than 30 meals a month so

58:38 ↗ let's say it's a thousand meals a month

58:41 ↗ and I I don't know the fully burdened

58:44 ↗ cost of a meal but the city isn't paying

58:47 ↗ for those meals we who provide them are

58:49 ↗ paying and I'm really concerned about

58:52 ↗ the continuity of those meals and I'm

58:55 ↗ and hearing what's been said about

58:58 ↗ inflation and people's purchasing power

59:01 ↗ when I went to the food bank annual

59:04 ↗ luncheon and and heard some of their

59:06 ↗ statistics um I have a lot of concern

59:09 ↗ about the continuity of meals and

59:11 ↗ healthful food for people in issaqua and

59:15 ↗ I didn't hear I didn't see anything

59:16 ↗ having to do with human services I

59:18 ↗ didn't see anything having to do with

59:21 ↗ continuity of our meals program of just

59:25 ↗ you know a teeny tiny Speck you let us

59:27 ↗ use the hall that's it and a little bit

59:29 ↗ of parking um so what I didn't hear is

59:34 ↗ human services and we know that people's

59:37 ↗ purchasing powers and ability to feed

59:39 ↗ their families is affected by the

59:41 ↗ economy so I'll be looking for something

59:43 ↗ some commentary like that in in some

59:45 ↗ future meeting and thank you I'm very

59:47 ↗ grateful for the opportunity to make

59:49 ↗ public comments and I hope I don't abuse

59:52 ↗ it you definitely

59:55 ↗ don't um I will just take a moment and

59:59 ↗ just say hey this is our first mid by

1:00:02 ↗ enum budget and so it's a little bit

1:00:05 ↗ different of a feel we're not going

1:00:08 ↗ Department by department and looking at

1:00:11 ↗ each of the positions and their revenue

1:00:14 ↗ and their expenditures and understanding

1:00:16 ↗ what the overall makeup in the city and

1:00:19 ↗ so I think it's important to recognize

1:00:21 ↗ that we don't have an opportunity really

1:00:24 ↗ at this point to highlight all of the

1:00:27 ↗ amazing things that we are doing as a

1:00:29 ↗ city including human services including

1:00:32 ↗ our grants

1:00:33 ↗ programs um but it it we are trying to

1:00:38 ↗ streamline and hold to best practices of

1:00:42 ↗ a vium budget as a way to think a little

1:00:48 ↗ bit more long term and so I appreciate

1:00:51 ↗ that so um just turning back to council

1:00:55 ↗ is there any other information that you

1:00:58 ↗ feel like we're going to need in order

1:01:01 ↗ to approach this at our next sessions is

1:01:05 ↗ that I heard you know it would be nice

1:01:08 ↗ to understand what the um potential

1:01:12 ↗ Revenue offsets are for programs such as

1:01:16 ↗ the jail um where we're putting out

1:01:19 ↗ additional expenditures so I think

1:01:21 ↗ that's been heard are there any other

1:01:24 ↗ things that you know any individual is

1:01:26 ↗ looking at and saying I need more

1:01:28 ↗ information on this or this would be

1:01:32 ↗ helpful um council member hunt thank you

1:01:36 ↗ um so we did let the community know when

1:01:39 ↗ we were negotiating the budget with

1:01:40 ↗ Recology that there would be increased

1:01:42 ↗ Outreach for um customers and that we

1:01:45 ↗ would have the zero waste specialist and

1:01:47 ↗ um things that were that in my

1:01:50 ↗ understanding are now proposed to be

1:01:52 ↗ covered by the sustainability position

1:01:54 ↗ and so I think it would be good to look

1:01:56 ↗ at when we did that contract what those

1:01:59 ↗ costs were and what conversations we had

1:02:01 ↗ around those services and make sure that

1:02:05 ↗ we're um make sure that we aren't taking

1:02:07 ↗ on taking on those um things that we

1:02:10 ↗ negotiated in the contract without

1:02:12 ↗ revisiting that contract for for the

1:02:15 ↗ community since the community is paying

1:02:17 ↗ a higher rate now and those were things

1:02:18 ↗ that we said would be provided um I'd

1:02:21 ↗ like more information on

1:02:22 ↗ that and I'll add to that um I may have

1:02:26 ↗ a different understanding or assumption

1:02:30 ↗ about what that position is and so

1:02:32 ↗ getting a clear understanding of what

1:02:35 ↗ that role and responsibility is what

1:02:37 ↗ we'll be handling versus Recology would

1:02:39 ↗ be

1:02:40 ↗ great okay two really

1:02:43 ↗ good sets of information there any

1:02:48 ↗ council member hunt I have one more

1:02:50 ↗ thing um the cameras in the jail for

1:02:54 ↗ example that I believe isn't on our CIP

1:02:57 ↗ true up but there was a project that was

1:03:00 ↗ in our CIP for a later year I believe it

1:03:02 ↗ was 2027 that was that I believe is is

1:03:06 ↗ moved up in the timeline okay I'm

1:03:08 ↗ getting a nod so I think that would be

1:03:10 ↗ helpful just to to make sure that we

1:03:13 ↗ know that we are these are these are

1:03:16 ↗ projects um when they aren't a true up

1:03:19 ↗ project where we've already had the

1:03:20 ↗ conversation but it's already a but it's

1:03:23 ↗ something that's in our plan we're

1:03:24 ↗ changing that timeline um that would be

1:03:27 ↗ good to know and have the project ID I

1:03:29 ↗ always um it's always helpful to know

1:03:32 ↗ when those timelines change and often

1:03:35 ↗ it's changing the other direction but in

1:03:37 ↗ this case it's changing to an earlier

1:03:38 ↗ date I believe and so just so we know

1:03:41 ↗ that that's the project it's now on this

1:03:43 ↗ timeline that'll be

1:03:48 ↗ helpful council member Ray are you

1:03:50 ↗ entertaining kind of General comments

1:03:53 ↗ about where we're we at with the Bal

1:03:55 ↗ budget um well let me throw some out um

1:03:58 ↗ first I really like the banial budget

1:04:01 ↗ versus the annual budget because budgets

1:04:03 ↗ are estimates anyway so they're

1:04:05 ↗ inherently wrong so let's um you know

1:04:07 ↗ let's just make be wrong once um but I

1:04:11 ↗ um I also appreciate that we're learning

1:04:12 ↗ how to do this and we're going to get

1:04:14 ↗ better at it and we'll get more

1:04:15 ↗ comfortable with it so um thank you very

1:04:17 ↗ much great job putting it together um

1:04:20 ↗ and moving us forward um I want to just

1:04:23 ↗ kind of build on a little bit on what I

1:04:25 ↗ was saying earlier about um wanting our

1:04:26 ↗ tax revenues to meet the needs of the

1:04:29 ↗ city and making sure that we are good

1:04:32 ↗ custodians and that we are also good um

1:04:35 ↗ have good business sense and this I

1:04:37 ↗ think goes to uh City administrator Bob

1:04:39 ↗ Kit's um point about we don't want to

1:04:42 ↗ price ourself out of the market but we

1:04:44 ↗ also want to maximize Revenue so it's a

1:04:46 ↗ little I mean I I think we got to find

1:04:48 ↗ that that balance and so I really

1:04:50 ↗ appreciate uh What uh Chief Schwan and

1:04:52 ↗ the uh police department are doing doing

1:04:54 ↗ to make sure that we are getting out

1:04:56 ↗ there but I also want to make sure that

1:04:58 ↗ um we are generating um and offsetting

1:05:02 ↗ our cost in uh a commencer an

1:05:04 ↗ appropriate way um so those are my two

1:05:07 ↗ kind of points and then when I look at

1:05:09 ↗ the future quite honestly I see a great

1:05:12 ↗ deal of uncertainty and that was kind of

1:05:13 ↗ the the the underlying pinnings of my my

1:05:16 ↗ last question there

1:05:18 ↗ and I and this isn't related to the Bal

1:05:21 ↗ budget or anything but I wonder if we

1:05:23 ↗ want to take take a step back from our F

1:05:25 ↗ Financial policies and say is 10 to 15%

1:05:29 ↗ really the ending fund balance that we

1:05:31 ↗ want to have as our Target or do we want

1:05:33 ↗ to put a bigger buffer in there um just

1:05:35 ↗ given these kind of current uncertain

1:05:38 ↗ Economic Times so that's more of a let

1:05:40 ↗ me just throw that out in the pot and

1:05:41 ↗ let you chew on it but um I'm really

1:05:45 ↗ glad we're doing the bin budget it is um

1:05:48 ↗ so much easier than going through the

1:05:50 ↗ whole budget process every year it's

1:05:52 ↗ easier to just to true it up and all of

1:05:54 ↗ the stuff we went through today in these

1:05:56 ↗ three big buckets we'd have been hashing

1:05:58 ↗ that out in a whole budget anyway so

1:06:01 ↗ it's it looks would have been we would

1:06:03 ↗ have been wrestling this stuff anyway

1:06:05 ↗ thank

1:06:09 ↗ you council member

1:06:13 ↗ Mars I share council member raise

1:06:16 ↗ concerns about uh always having an eye

1:06:21 ↗ I'm going to say it a little differently

1:06:22 ↗ uh having an eye on fund balance um but

1:06:26 ↗ I've also seen I've seen so many budgets

1:06:28 ↗ that say you know five or six years from

1:06:31 ↗ now our ending fund balance is going to

1:06:33 ↗ be really cratering and funny enough it

1:06:36 ↗ never happens that way so I'm with you

1:06:38 ↗ in spirit and I see that 11% and I go do

1:06:41 ↗ we do you know I was I was in the room

1:06:44 ↗ when we said 10 to 15% so I'll I will I

1:06:47 ↗ will cop to that but I also feel like if

1:06:50 ↗ I was going to put down money I of

1:06:52 ↗ course I would not bet on Counsel

1:06:53 ↗ Behavior because because that's wrong on

1:06:55 ↗ a whole bunch of legal and ethical

1:06:56 ↗ levels but were I to be a betting person

1:06:59 ↗ um I just don't think we're going to get

1:07:00 ↗ down to 11% but I think I think you're

1:07:02 ↗ right to to to have us keep a fierce eye

1:07:05 ↗ on that because it it really does

1:07:06 ↗ reflect our ability to respond to things

1:07:08 ↗ we also have that additional fund that

1:07:10 ↗ is in there it's not really 11% right

1:07:13 ↗ it's 11% including these liabilities

1:07:15 ↗ that we have and it's a bigger buffer uh

1:07:18 ↗ than when we used to say you know 11% or

1:07:21 ↗ 15% or whatever so I'm I'm with you in

1:07:23 ↗ spirit but I just feel like I've seen

1:07:25 ↗ this so many times where it's like well

1:07:27 ↗ we're fine for the next 3 or four years

1:07:28 ↗ but boy then we're really going to be in

1:07:30 ↗ a jam and we said that you know forgive

1:07:32 ↗ me 14 years ago

1:07:35 ↗ thanks and just to put a pin on that

1:07:37 ↗ Council does not place bets on budgetary

1:07:42 ↗ amounts staff decisions or any of our

1:07:45 ↗ votes just putting that out there uh

1:07:48 ↗ council member D

1:07:52 ↗ Michelle thanks thanks for that that

1:07:54 ↗ clarification so um you ask um if we

1:07:58 ↗ needed any inform more information and

1:08:01 ↗ uh I don't need any more information

1:08:03 ↗ because I just got a good answer to the

1:08:05 ↗ question that I asked about the

1:08:08 ↗ sequencing of the TBD and the uh midby

1:08:12 ↗ adoption but I do wonder if the public

1:08:14 ↗ needs more information so uh and that

1:08:17 ↗ was my concern when I originally asked

1:08:20 ↗ the question because we' got these

1:08:22 ↗ parallel processes going on um and they

1:08:25 ↗ both involve revenue and expenditures

1:08:28 ↗ and I'm just wondering if we can um do a

1:08:33 ↗ little bit better job of explaining to

1:08:34 ↗ the public how these two processes go

1:08:36 ↗ together and how they will meld down

1:08:40 ↗ down the line so that would that's one

1:08:42 ↗ comment other than that question I think

1:08:45 ↗ it's uh I I have I'm I'm very

1:08:48 ↗ appreciative of the work that the staff

1:08:50 ↗ did on this uh midby budget I think uh

1:08:53 ↗ um that it does address some of the big

1:08:56 ↗ concerns we have as a community and that

1:08:58 ↗ we've identified uh and very clearly uh

1:09:01 ↗ now we have responses to those concerns

1:09:03 ↗ so uh overall I'm very happy with uh

1:09:07 ↗ with what's been presented um and um my

1:09:12 ↗ only comment and I really appreciated

1:09:14 ↗ Liz

1:09:15 ↗ tidyman's comments about what's not

1:09:18 ↗ there um and so this is a comment for

1:09:21 ↗ the 2025 because I realized that this is

1:09:24 ↗ is just our adjustment to an existing

1:09:26 ↗ budget but um I didn't see the Arts

1:09:29 ↗ there um and uh again the um parks and

1:09:34 ↗ and Community Services um there's areas

1:09:37 ↗ there where I think um we the community

1:09:41 ↗ expects and uh we need to be looking at

1:09:44 ↗ how we can provide uh more comprehensive

1:09:47 ↗ programs that meet the recreational and

1:09:51 ↗ um social needs of our community so but

1:09:55 ↗ that's a comment for 2025 budget and the

1:09:58 ↗ process that we'll get do uh to get

1:10:01 ↗ there uh overall I'm very happy with uh

1:10:04 ↗ with the presentation so those are my

1:10:07 ↗ comments thank you very

1:10:10 ↗ much and I'll just put an additional ask

1:10:13 ↗ on what council member D Michelle said

1:10:15 ↗ about the TBD and um the budget process

1:10:19 ↗ happening at the same time I think one

1:10:21 ↗ way to that would be help for the public

1:10:24 ↗ to clarify would be to say what happens

1:10:28 ↗ if the TBD does pass and what are the

1:10:31 ↗ steps there what happens if the TBD

1:10:34 ↗ doesn't pass what are the impacts there

1:10:38 ↗ um to show that the budget can live

1:10:42 ↗ independent of the TBD decision um so

1:10:47 ↗ that we know that we don't we're not

1:10:49 ↗ making an assumption on one based on the

1:10:52 ↗ other

1:10:56 ↗ okay um looking around seeing if we've

1:10:59 ↗ got council member

1:11:03 ↗ hunt um so in terms of what we aren't

1:11:07 ↗ seeing um from my perspective these are

1:11:11 ↗ these are um changes that we are making

1:11:14 ↗ because uh there was a need in the case

1:11:17 ↗ of the jail um positions for example um

1:11:21 ↗ so we are addressing a need um um and

1:11:25 ↗ then we've also taken the opportunity to

1:11:27 ↗ reduce um some costs where we realize

1:11:31 ↗ that we don't need them anymore that

1:11:33 ↗ wasn't actually covered very much but

1:11:35 ↗ you know for example we're eliminating

1:11:36 ↗ the limited term Parks planning and

1:11:38 ↗ project administrator position which was

1:11:41 ↗ helping with the arpa um planning and

1:11:44 ↗ which was determined that we don't need

1:11:46 ↗ that anymore um so a lot of programs

1:11:49 ↗ they were budgeted you know our our

1:11:51 ↗ human services staff was in increased we

1:11:54 ↗ have a Motel 6 program um and a

1:11:57 ↗ co-response program all of those things

1:11:59 ↗ were budgeted and so those are

1:12:00 ↗ continuing and I think that's that's

1:12:03 ↗ important to um to mention that and you

1:12:05 ↗ know we also didn't talk about open

1:12:07 ↗ space planning for example or open space

1:12:09 ↗ acquisition funding that's because that

1:12:11 ↗ was in the budget and that will continue

1:12:12 ↗ to be in the budget so these are

1:12:14 ↗ adjustments due to um needs that have

1:12:18 ↗ Arisen um or or changes that we can make

1:12:22 ↗ to save uh to save the community money

1:12:26 ↗ um because those positions are no longer

1:12:28 ↗ needed or those expenses are no longer

1:12:30 ↗ needed um and it doesn't mean that we

1:12:33 ↗ aren't funding lots of other great work

1:12:36 ↗ across the city um I had a couple other

1:12:40 ↗ points one is very happy to see the

1:12:42 ↗ trolley funding there um it's a small

1:12:44 ↗ amount of money but it does make a big

1:12:46 ↗ difference for the planning for the squa

1:12:48 ↗ history museums to know that that is

1:12:50 ↗ something that will be covered by the

1:12:51 ↗ city um and his City equipment and then

1:12:55 ↗ also I'm very glad to see the summer

1:12:57 ↗ camp positions uh that is something that

1:13:00 ↗ I had spoken to earlier with firsthand

1:13:02 ↗ experience that um you know there's a

1:13:04 ↗ real Community benefit there and there's

1:13:08 ↗ a lot of families that would um be able

1:13:10 ↗ to take advantage of that if we could

1:13:12 ↗ increase capacity so I'm very glad that

1:13:13 ↗ we've taken action on that in a timely

1:13:16 ↗ manner um and looking forward to hearing

1:13:19 ↗ stats back about how that increases

1:13:21 ↗ capacity and also great that that's

1:13:23 ↗ actually um bringing in more Revenue

1:13:25 ↗ expected to bring in more Revenue than

1:13:27 ↗ the program costs so a real

1:13:29 ↗ win-win there um so overall I think this

1:13:34 ↗ has been a good a good process the first

1:13:36 ↗ time we we're doing these adjustments um

1:13:40 ↗ and my my one real question which I

1:13:42 ↗ mentioned is is around the need for this

1:13:45 ↗ Solid Waste program analyst we have a

1:13:47 ↗ lot of

1:13:49 ↗ sustainability uh we have a a climate

1:13:52 ↗ action plan a lot of things we want to

1:13:53 ↗ do a lot of things we want to do in the

1:13:55 ↗ sustainability program and um it reads

1:13:58 ↗ to me like a lot of the things that this

1:14:00 ↗ program this position would do were

1:14:03 ↗ meant to be covered in the contract with

1:14:04 ↗ rology so that's the one area where I'd

1:14:06 ↗ like more information other than that I

1:14:08 ↗ think this is um very clear and I um am

1:14:13 ↗ appreciative again of those changes that

1:14:14 ↗ were

1:14:20 ↗ made okay not seeing any any other

1:14:24 ↗ comments so Administration do you have

1:14:27 ↗ what you need to move forward and I was

1:14:31 ↗ going to say just want to read over and

1:14:34 ↗ understand so the next touch point is on

1:14:38 ↗ November

1:14:39 ↗ 20th uh with a regular meeting and the

1:14:42 ↗ public hearings there which that will

1:14:44 ↗ also include the transportation benefit

1:14:46 ↗ District correct public hearing yeah

1:14:50 ↗ okay uh is there anything else you need

1:14:52 ↗ from

1:14:56 ↗ us no thank you okay

1:14:59 ↗ fantastic well I think we are good I'm

1:15:04 ↗ going to look down

1:15:07 ↗ through um looks like we have a section

1:15:11 ↗ for announcements does anybody have

1:15:14 ↗ announcements okay and then at that

1:15:17 ↗ point adjournment so we are now

1:15:20 ↗ adjourned at 7:45 p.m. thank you

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