City Council Special Meeting · Monday, October 22, 2018 · City Council Digest

2. PUBLIC HEARING

Proposed 2019 Budget: Levy and Revenue Sources AB 7611

Conduct Public Hearing · packet pp.3–15

Topics: Budget

Open packet at p.3 ↗

Staff report:

City Council / Tola Marts, Council President:

1746 segments .txt ↗

0:13 ↗ good evening and welcome to the council

0:16 ↗ committee work session for Monday

0:18 ↗ October 22nd this is the first of the

0:21 ↗ much-discussed long anticipated excited

0:24 ↗ budget 2019

0:27 ↗ budget deliberation conversations we

0:30 ↗ have three hours scheduled for this

0:32 ↗ evening we will be taking public comment

0:35 ↗ but because this is all sort of one big

0:38 ↗ presentation I am gonna take public

0:40 ↗ comment at the end so that's when that's

0:44 ↗ when we will be taking public comment

0:45 ↗ this evening so with that I am going to

0:48 ↗ turn it over to City Administrator moon

0:50 ↗ thank you happy to be here tonight was

0:54 ↗ so excited about talking about revenue

0:56 ↗ that I just jumped in on roofs public

0:59 ↗ hearing earlier to get right to the big

1:02 ↗ stuff we have two presentations that

1:05 ↗ we're gonna walk through tonight the

1:08 ↗ first is just to give some background on

1:13 ↗ council responsibilities are intense on

1:15 ↗ what we're going to present set the set

1:18 ↗ the table so to speak this is our

1:21 ↗ high-level schedule this is the schedule

1:24 ↗ that was presented in the budget and

1:25 ↗ brief document which is posted online

1:28 ↗ remind council that are more detailed

1:30 ↗ schedule was given to you on October 1st

1:34 ↗ and it attempts to lay out topics and

1:38 ↗ tentative if anticipated way for each

1:41 ↗ evening so you have a little bit more of

1:43 ↗ that information our ultimate goal is of

1:48 ↗ course we need to adopt the budget by

1:51 ↗ December 31st I also wanted to point out

1:54 ↗ on this slide that on November 5th where

1:58 ↗ it says first public hearing on

1:59 ↗ preliminary budget that we also

2:02 ↗ anticipate will include a moment in time

2:05 ↗ where we bring forward the salary

2:08 ↗ ordinance which will describe the

2:10 ↗ classifications and salary ranges and

2:13 ↗ we'd anticipate perhaps taking adoption

2:16 ↗ on that at the same date as the final

2:19 ↗ budget December 3rd

2:24 ↗ so a state law describes what we need to

2:28 ↗ give to you in the public in terms of a

2:31 ↗ budget on the revenue side we need to

2:33 ↗ provide actuals from the prior complete

2:36 ↗ year

2:37 ↗ that's 2017 we need to provide year an

2:40 ↗ estimate for the current year we're in

2:42 ↗ estimate for 2019 what we're

2:45 ↗ anticipating for revenues and we need to

2:47 ↗ more specifically include the ad valorem

2:50 ↗ and we reported on that earlier this

2:53 ↗ evening and also the unencumbered fund

2:56 ↗ balance on the expenditure side we are

3:01 ↗ required by state law to give you totals

3:04 ↗ for each fund and every department

3:05 ↗ within each fund and that data is to

3:09 ↗ include again actuals revised adopted

3:13 ↗ budget for the current year and the

3:15 ↗ proposed 2019 budget I mentioned we also

3:21 ↗ have to give you the salary or range of

3:24 ↗ costs for each classification and a

3:28 ↗ budget message which the mayor delivered

3:31 ↗ on last week

3:39 ↗ [Applause]

3:40 ↗ your key Birds that's gonna get me all

3:43 ↗ night long

3:44 ↗ state law also describes the final

3:48 ↗ budget as final form budget and that

3:51 ↗ style of budget needs to show the

3:53 ↗ estimated revenue and appropriations for

3:56 ↗ each separate fund and the aggregate

3:59 ↗ total the total city budget it includes

4:02 ↗ all funds and then at a high level it

4:05 ↗ describes the authority of the council

4:07 ↗ as being to approve the total amount

4:11 ↗ appropriated for each fund and that

4:13 ↗ that's what constitutes approved

4:15 ↗ expenditures and that's with regard

4:18 ↗ without regard to the individual items

4:20 ↗ that are within and so that's the

4:22 ↗ language that we're we often talk about

4:24 ↗ when we say that you have authority at

4:26 ↗ the fun level another term that we use

4:32 ↗ often yes I'm sorry to interrupt could

4:34 ↗ you please go back so the total amount

4:38 ↗ appropriated for each fund constitutes

4:39 ↗ the approved expenditures without regard

4:42 ↗ to the individual items contained

4:43 ↗ therein I want to make sure I understand

4:49 ↗ the intent of that comment I've always

4:51 ↗ viewed this as as there's really

4:54 ↗ multiple components to the budget of

4:56 ↗ course there is what you talked about

4:57 ↗ here in the appropriations per fund then

5:00 ↗ and of course we caná-- summarize that

5:02 ↗ in one page yes but our budget documents

5:04 ↗ are 190 pages correct and there is a lot

5:07 ↗ of background information but there's

5:09 ↗ also there's also there's workplane

5:10 ↗ information just staffing information

5:12 ↗ there are capital projects in there and

5:16 ↗ outside of the fund balance

5:17 ↗ appropriations I've always viewed all of

5:21 ↗ these other elements and many that I

5:22 ↗ didn't mention as as as as policy budget

5:28 ↗ policy and and so though there's a

5:33 ↗ technicality that we only approve an

5:35 ↗ appropriation at the fun level but in

5:38 ↗ essence though we are also adopting

5:40 ↗ quite a bit of policy absolutely

5:41 ↗ absolutely and and again this is just

5:45 ↗ what the state law says in this section

5:47 ↗ on the budget there are other

5:49 ↗ that require you to to actually approve

5:51 ↗ of different kinds of expenditures you

5:55 ↗ know land transactions those sorts of

5:57 ↗ things so there's other state laws of

5:58 ↗ reference individual Authority and

6:01 ↗ appropriations so this was overly

6:05 ↗ simplified and having said that yes we

6:07 ↗ still provide you with a whole lot more

6:09 ↗ information because we know in order to

6:11 ↗ make good decisions in the macro you

6:14 ↗ need to also understand the bits and

6:16 ↗ pieces that comprise the whole and it

6:20 ↗ sets direction for the city and our

6:22 ↗ delivery of services absolutely

6:26 ↗ so a couple terms if we talk about a

6:30 ↗ balanced budget there's a couple ways

6:32 ↗ state defines this term per state law

6:36 ↗ it's when appropriations are limited to

6:39 ↗ the total estimated revenues including

6:42 ↗ the unencumbered fund balance so it says

6:45 ↗ you may use savings from prior years and

6:49 ↗ if you do it still constitutes a

6:52 ↗ balanced budget however what we aim to

6:55 ↗ develop every year is what we would call

6:57 ↗ a structurally balanced budget and that

7:00 ↗ is also defined in state statute and

7:02 ↗ it's when all of our ongoing expenses

7:05 ↗ are met by recurring revenues so we

7:07 ↗ don't rely on fund balance still we have

7:12 ↗ opportunities to use fund balance for

7:14 ↗ one-time appropriations and that is an

7:19 ↗ absolutely fine way to fund many

7:21 ↗ one-time items and state law says you

7:28 ↗ should conduct a couple hearings three

7:30 ↗ hearings actually and establish our

7:32 ↗ property rate prove those salary ranges

7:35 ↗ and classifications and adopt that final

7:37 ↗ form budget however because it is policy

7:43 ↗ based as well we have desired actions

7:46 ↗ that we usually take you through every

7:48 ↗ budget season these are the desired

7:50 ↗ actions from the point of view of mayor

7:53 ↗ and city administration so the first is

7:56 ↗ we like to review in depth estimated

7:58 ↗ revenues this

8:00 ↗ plans for the funds and departments we

8:03 ↗ like to highlight the major changes

8:06 ↗ because we looked at every little detail

8:08 ↗ the budget there's changes in multiple

8:11 ↗ places and we have a policy question in

8:15 ↗ front of you in this budget and that's

8:16 ↗ what the operational model should be for

8:19 ↗ the senior center going forward we're

8:21 ↗ going to talk about that in a later

8:22 ↗ budget work session as well as the 2019

8:27 ↗ capital projects we have some unfunded

8:28 ↗ projects we have some projects that are

8:30 ↗ planned for year one in our CIP which

8:33 ↗ will now be 2019 and the mayor and I

8:38 ↗ have recommended an increase to the

8:39 ↗ Hart's Housing Trust Fund contribution

8:42 ↗ and I had said during budget

8:43 ↗ deliberations we'd come back to that and

8:45 ↗ have that conversation some other

8:49 ↗ desired actions are to review the work

8:51 ↗ plan we're going to cover items that are

8:53 ↗ in it and some items that were left out

8:55 ↗ this year we had a confined budget we

9:00 ↗ had a limited amount of new revenue and

9:01 ↗ that worst us to make some decisions

9:06 ↗ about which projects we would pursue

9:09 ↗ they're also asking to present the

9:13 ↗ staffing needs that we have and asking

9:16 ↗ for your support for our staffing

9:18 ↗ recommendations we're looking to review

9:21 ↗ the city gives funding that's Community

9:24 ↗ Fund Human Services grants some other

9:28 ↗ other ways in which we contribute to

9:30 ↗ local nonprofits in particular and

9:34 ↗ asking you to approve those

9:36 ↗ recommendations we will discuss the

9:40 ↗ possible use of general fund fund

9:42 ↗ balance and this budget did not utilize

9:45 ↗ any and we'll talk a little bit at the

9:48 ↗ end about our 2019 plan to analyze some

9:53 ↗ of the design of our funds move forward

9:56 ↗ on more cost allocation and move funds

10:00 ↗ in the direction of greater

10:01 ↗ sustainability so overall this is our

10:08 ↗ plan for the presentations going forward

10:10 ↗ we're going to spend time on revenues

10:12 ↗ we're going to review fund into

10:14 ↗ Herman totals and I highlight the big

10:16 ↗ things in the budget we're gonna talk

10:19 ↗ about the mayor's people and tools

10:21 ↗ strategy which was the framework for our

10:23 ↗ budget development and talk about 2019

10:26 ↗ let's plan and how that fits with our

10:29 ↗ long-range planning model and those

10:33 ↗ areas that it appears are going to need

10:35 ↗ more attention going forward into the

10:38 ↗ next year so that's first presentation

10:49 ↗ we're moving to the second one any

10:53 ↗ questions so far

10:54 ↗ they're questions

11:01 ↗ should be a folder on the desktop okay

11:13 ↗ so the second presentation that we're

11:16 ↗ gonna make tonight is more meaty in

11:20 ↗ terms of turning our attention to

11:22 ↗ numbers and nope which one do I do close

11:29 ↗ master view where's that uh oops back

11:35 ↗ live master over on the right hand side

11:37 ↗ there's a red there nope okay good

11:42 ↗ thanks Lisa

11:51 ↗ thank you okay and as Christina gets

11:57 ↗ seated and the first thing that we're

11:59 ↗ gonna do is talk a little bit about

12:01 ↗ what's new and different this year in

12:04 ↗ terms of our process and budget formats

12:07 ↗ so I'm going to turn it over to

12:09 ↗ Christina eller I'm Christina eller one

12:17 ↗ of the financial operations managers I

12:20 ↗ wanted to take a moment to walk you

12:22 ↗ through what the budget process has look

12:25 ↗ like Moon's going to look like this is a

12:27 ↗ multi-step multi-year journey to improve

12:31 ↗ the budget process we are looking at

12:35 ↗ setting up a process with best practices

12:39 ↗ policies and procedures that contribute

12:42 ↗ to improve our government management

12:45 ↗ part of that has included the department

12:47 ↗ restructure which has aligned our

12:51 ↗ accounting division the revenue division

12:54 ↗ and budgeting division to better align

12:57 ↗ with some of those services to enhance

13:00 ↗ and utilize our expertise and it will

13:05 ↗ allow us to better align with the

13:07 ↗ strategic plan as that comes to

13:09 ↗ completion

13:10 ↗ early next year we've also implemented

13:13 ↗ new software that's included the

13:16 ↗ financial system and also in progress is

13:18 ↗ our new budget development system West

13:21 ↗ ouka and that will allow us in time to

13:26 ↗ also align with our strategic plan and

13:27 ↗ we'll be able to tie some of these new

13:30 ↗ strategic initiatives along with the

13:35 ↗ plan part of best practices has allowed

13:40 ↗ us the opportunity opportunity to

13:44 ↗ restructure our chart of accounts this

13:46 ↗ has been a two-fold process what we

13:49 ↗ started a few years ago with

13:51 ↗ restructuring from a long account to a

13:54 ↗ short account I believe that we went

13:57 ↗ from 10

13:58 ↗ and accounts down to three we still in

14:02 ↗ this last year went through another

14:04 ↗ restructuring and that was to align with

14:07 ↗ our reporting that is regulated by bars

14:11 ↗ our state mandate that allows us to it's

14:18 ↗ better reporting and we've been able to

14:21 ↗ follow the federal and state

14:22 ↗ requirements for cost allocation setting

14:26 ↗ up for cost allocation and the accrual

14:30 ↗ method of accounting was established

14:34 ↗ three or four years ago we went from

14:36 ↗ cash basis to accrual basis this new

14:43 ↗ format in finance has given us the

14:46 ↗ opportunity to have better perspective

14:52 ↗ with long range planning to work more

14:54 ↗ with the Finance Committee ad hoc

14:56 ↗ committee long range planning it's been

15:01 ↗ it allowed us time to comply with fiscal

15:03 ↗ policy allow more interdepartmental

15:06 ↗ collaboration and will allow us more

15:10 ↗ engagement with with the departments but

15:13 ↗ also with the community we've been able

15:16 ↗ to adopt a five-year CIP and including

15:20 ↗ the first two years in a biennial budget

15:22 ↗ that's allowed us in this off year to do

15:25 ↗ the chart of accounts and do some of

15:27 ↗ that extra work we were able to work

15:32 ↗ with IT to fund the IT this is the new

15:37 ↗ internal server and internal service

15:39 ↗ it's a new internal service fund for IT

15:41 ↗ and develop the cost allocation plan and

15:44 ↗ we'll further that development through

15:46 ↗ we'll talk about it later in the

15:48 ↗ workshops but with fleet and refined

15:52 ↗ some of those allocations with other

15:53 ↗ other areas part of what you'll see in

15:58 ↗ this new process is a new document our

16:02 ↗ previous historical documents have been

16:06 ↗ very manual and

16:08 ↗ although useful and we want to

16:10 ↗ contribute and continue some of those

16:12 ↗ informative pieces we're looking to use

16:15 ↗ the the system have the departments

16:19 ↗ utilize the system get the information

16:21 ↗ out to them faster help with management

16:25 ↗ decisions executive decisions and get

16:27 ↗ that turnaround time a little faster and

16:29 ↗ a little more deliberate a little more

16:31 ↗ strategic in many ways so you'll see

16:35 ↗ some of our standardization has included

16:37 ↗ terminology we're talking about the

16:40 ↗ preliminary budget which has had

16:42 ↗ different forms and terms in the past

16:44 ↗ like draft or proposed we've tried to

16:47 ↗ simplify it it may not look like it's

16:49 ↗ simplified but it is it's also allowing

16:54 ↗ us as we go through this process we will

16:57 ↗ have the opportunity to have what's

17:00 ↗ called open book it's more interactive

17:02 ↗ its outward facing and you can engage

17:07 ↗ different levels of the community

17:09 ↗ different levels of the organization so

17:11 ↗ we're looking forward to that it also

17:13 ↗ has a component of performance metrics

17:15 ↗ performance management we're looking

17:18 ↗ forward to that component and getting

17:20 ↗ that in but you know as part of our

17:21 ↗ normal city of Issaquah process it's

17:27 ↗ giving us a different level of

17:29 ↗ organizational reporting and feedback

17:31 ↗ and it's giving us a process for review

17:35 ↗ and part of that is here with counsel

17:39 ↗ and the workshops and being being able

17:43 ↗ to provide different levels of

17:45 ↗ information to you so we look forward to

17:51 ↗ this process and

17:56 ↗ questions so far remember winter Stein I

18:02 ↗ may be ahead of the game so I'm sure

18:04 ↗ you'll tell me if I am at what point are

18:05 ↗ you going to explain

18:10 ↗ I'll use the multi org summary structure

18:17 ↗ that's in the book preliminary budget

18:19 ↗ document so reading we can talk about

18:21 ↗ that a little bit would you like to do

18:22 ↗ that that is part of was the long

18:27 ↗ account went to a short account which is

18:30 ↗ the org code it's basically I don't want

18:33 ↗ to call it a costing center but it is an

18:35 ↗ organizational component it there can be

18:40 ↗ several organization codes in a

18:43 ↗ department amar it's it's the difference

18:48 ↗ between some our departments and some

18:49 ↗ our funds themselves but it is based on

18:54 ↗ funds there at that okay so the org

19:01 ↗ summary is is will align and help align

19:05 ↗ with a strategic plan so they should be

19:08 ↗ standalone okay no I think I might know

19:13 ↗ enough to understand that you change the

19:15 ↗ chart of accounts the we have a cost

19:17 ↗ Center and it sounds like you have a org

19:19 ↗ component as well maybe that's another

19:20 ↗ segment or not maybe it's within that

19:23 ↗ how it so but this is now what's

19:25 ↗ reflected in this reporting I can see

19:26 ↗ that you've done the budget using that

19:28 ↗ new structure yeah we don't even need to

19:30 ↗ compare it against its we can't it's you

19:33 ↗ can't and it go back and see the same

19:37 ↗ level of information now into you know

19:41 ↗ year-over-year comparison so I'm not

19:44 ↗ asking that you make that possible but

19:46 ↗ but I do we'll need as we go through

19:51 ↗ this some help on help because last few

19:55 ↗ years is the basis that we have and with

19:58 ↗ this new structure and the way this data

20:00 ↗ is now broken out

20:01 ↗ we can't go we don't have a ready

20:04 ↗ comparison to previous years at all

20:06 ↗ this level I leave you have something

20:11 ↗ pretty close so instead of looking at

20:13 ↗ the pages that are marked org

20:16 ↗ multiple org summary is a lovely

20:19 ↗ descriptive header that cuesta chi gave

20:21 ↗ us you can instead look at the budget

20:26 ↗ expenditure Harrison summary which is

20:29 ↗ organized in the same fashion that we

20:31 ↗ have done before so you can look at city

20:34 ↗ clerk city facilities there are if you

20:38 ↗ go back further than 2017 actuals that

20:43 ↗ we gave you then yes that will be a

20:44 ↗ little bit more complicated and I'll

20:46 ↗ give you an example of that we've

20:49 ↗ renamed some functions in order to get

20:53 ↗ them into sort of these cost allocation

20:55 ↗ buckets but we can help show you a map

21:00 ↗ for that but we've given you at least

21:02 ↗ the ability to compare the 2018 budget

21:05 ↗ and the 2017 actuals with what's

21:08 ↗ proposed for 2019 okay so thank you so

21:10 ↗ that's starting on page five titled the

21:12 ↗ budget expenditure comparison summary

21:14 ↗ and correct and and since you brought

21:16 ↗ that up

21:17 ↗ city of the V I don't know what you're

21:21 ↗ going to call these departments slash

21:23 ↗ funds but within these city facilities

21:26 ↗ I'm going to list a couple of them off

21:28 ↗ here and I can give them to you via

21:29 ↗ email city facilities non-departmental

21:34 ↗ emergency management streets and special

21:38 ↗ revenue funds debt service capital

21:40 ↗ projects internal service those don't

21:43 ↗ map back to last year correct that's

21:47 ↗ where you have different titles whether

21:49 ↗ they combine some groups and some pieces

21:52 ↗ emergency management for example was a

21:54 ↗ division or indirect Public Works ops

21:56 ↗ okay so so that that's the kind of help

22:00 ↗ I'm going to ask okay if you've I

22:02 ↗ recognize that there was some

22:03 ↗ reorganization restructure recoding that

22:05 ↗ was done we're seeing it all in the new

22:07 ↗ structure but I need even at this

22:09 ↗ summary level starting on page five

22:11 ↗ right but as I tried to go back and I

22:13 ↗ just pulled up last year's budget

22:15 ↗ document yes many those organizations

22:17 ↗ are there but this is clearly is a blend

22:19 ↗ of

22:19 ↗ as Christine mentioned some funds and

22:22 ↗ some departments sure so what we could

22:25 ↗ do is we could give you that we could

22:27 ↗ map these new units to where they were

22:31 ↗ budgeted before what may be more

22:33 ↗ difficult for us is to take past year's

22:37 ↗ budgets and then break them into these

22:39 ↗ new parts and and I know that's very

22:42 ↗ difficult to do when you've recoded

22:44 ↗ Thanks so I'm mapping at this point is

22:47 ↗ all I would ask for great thank you

22:51 ↗ other questions right now thank you

22:56 ↗ please proceed

22:57 ↗ all right so tonight we're gonna focus

22:59 ↗ on the general fund this is a year-end

23:04 ↗ kind of snapshot showing what we have is

23:07 ↗ the originally adopted budget and we

23:10 ↗ brought forward a budget amendment

23:12 ↗ amendment in August and that and then we

23:16 ↗ asked departments to estimate where

23:17 ↗ they're going to be at your end

23:19 ↗ I will tell you that is their best guess

23:21 ↗ we have some departments that do an

23:23 ↗ excellent job at that guesswork and we

23:26 ↗ have others that were growing their

23:28 ↗ sophistication and helping to create

23:31 ↗ those year-end estimates I tell you that

23:34 ↗ because we we then utilize a snapshot

23:38 ↗ like that to look at fund balance and

23:42 ↗ fund balances it changes every day it's

23:47 ↗ wholly dependent on what we are

23:49 ↗ receiving in revenue and what we're

23:51 ↗ expending and that does change over time

23:54 ↗ so right now in this budget we are

23:58 ↗ forecasting that our revenues are going

24:02 ↗ to be better than expected and budgeted

24:05 ↗ by 2.3 1 million dollars and our

24:08 ↗ expenditures are going to be less than

24:11 ↗ what we expected by four point four four

24:14 ↗ million dollars I will tell you that

24:19 ↗ four point four four is eight and a half

24:22 ↗ percent on top of the is eight and a

24:25 ↗ half percent of what the amended budget

24:27 ↗ was for expenditures that's a fairly

24:30 ↗ high return to fund balance

24:32 ↗ in my book and again still a product of

24:36 ↗ where departments believe they're going

24:39 ↗ to end the year I expect that will

24:41 ↗ change some can't say which way positive

24:45 ↗ or negatively but we are going to go

24:50 ↗ through an effort that's coming here to

24:52 ↗ again get better at doing those

24:54 ↗ estimations but also at looking at our

24:58 ↗ expenditures throughout the year so that

25:00 ↗ we're better able to understand what we

25:04 ↗ may need to bring back to you in a

25:05 ↗ budget amendment and what we may not

25:07 ↗ need to and there were things in the

25:09 ↗ August amendment that we held back

25:11 ↗ because we could clearly see that we had

25:14 ↗ the capacity to fund those things and so

25:17 ↗ they weren't part of the budget

25:18 ↗ amendments we're making progress if you

25:22 ↗ look at the bottom chart there we

25:25 ↗ started the year we I'm sorry in August

25:31 ↗ during the retreat we had estimated the

25:35 ↗ ending fund balance for 2018 to be

25:38 ↗ sixteen point seven million dollars if

25:40 ↗ you add on top of that the return to

25:42 ↗ fund balance that we're anticipating now

25:45 ↗ that would give us a beginning fund

25:48 ↗ balance for 2019 of twenty-three point

25:51 ↗ four six million dollars that is a multi

25:55 ↗ unbalanced I'm sorry

26:09 ↗ just to be clear that's kind of like a

26:12 ↗ positive name so the four point five

26:14 ↗ percent is an increase over expected

26:16 ↗ revenue and this eight point five

26:18 ↗ percent is a decrease in expenditures of

26:21 ↗ what was expected right yes so they're

26:26 ↗ both looking like positive numbers but

26:27 ↗ they're kind of in a sense it's two

26:29 ↗ different ends of the spectrum right

26:30 ↗ correct it's actually the it's taking in

26:34 ↗ the case of the four point four four

26:38 ↗ it's taking the 52 million dollars that

26:41 ↗ was amended budget and it's saying what

26:44 ↗ percent spend that is returning to fun

26:48 ↗ bounds and that's that's the eight point

26:51 ↗ five right so we spent eight point five

26:52 ↗ percent less than anticipated less we

26:55 ↗ got more revenue four point five percent

26:57 ↗ more than anticipated so that's where

26:59 ↗ that six million dollars got to be a

27:01 ↗ pretty big number because we're adding

27:03 ↗ those together that's all I'm just

27:04 ↗ trying to say so it doesn't look like

27:05 ↗ they're both pluses are both minuses

27:07 ↗ right no they don't balance each other

27:09 ↗ out

27:09 ↗ they actually crack to each other

27:11 ↗ correct that's why the two point three

27:13 ↗ and a four point four add up to six

27:14 ↗ point seven five correct

27:15 ↗ great thank you just clarify yeah we're

27:19 ↗ gonna spend more time in a subsequent

27:22 ↗ presentation on actually next Monday

27:24 ↗ talking about the return to fund balance

27:26 ↗ and we're gonna break that down for you

27:28 ↗ a little bit more on the expenditure

27:30 ↗ side what I can say about that two point

27:32 ↗ three one return to fund balance on the

27:34 ↗ revenue side it's largely from two

27:37 ↗ places its property tax so increased

27:39 ↗ valuations new construction additional

27:43 ↗ value in there for additional tax that's

27:45 ↗ coming to the city and sales and use tax

27:49 ↗ so higher than expected sales and use

27:53 ↗ tax revenue a little lesser extent

27:56 ↗ coming from utility tax and building

27:58 ↗ permanence this is just my graphic to

28:05 ↗ illustrate that fund balance does change

28:07 ↗ over time I wanted to give you just an

28:12 ↗ example of this at the end of the budget

28:15 ↗ season in 2016 as we were adopting the

28:18 ↗ 2017 budget our beginning fund balance

28:21 ↗ was 15 million dollars a year from that

28:24 ↗ point we came back together and we're

28:26 ↗ ready to adopt the 2018 budget and at

28:29 ↗ that point we projected the 2017 ending

28:32 ↗ fund balance 1.5 million dollars higher

28:35 ↗ we had the retreat in August and we

28:39 ↗ looked at 2017 actual fund balance and

28:42 ↗ it was 18 million dollars

28:44 ↗ and and so on and so this is just meant

28:47 ↗ to illustrate that fund balance is on

28:51 ↗ the move

28:52 ↗ it's unmoving I think a good directions

28:54 ↗ going up that's it shows the health of

28:58 ↗ the city and our local economy but it's

29:04 ↗ a snapshot in time it changes every time

29:06 ↗ we take a look at it and do that math to

29:08 ↗ look at expenditures and revenues so

29:15 ↗ here's just a little bit more of that

29:18 ↗ general fund return to fund balance

29:20 ↗ broken down we look at the increased

29:23 ↗ revenue I spoke about this already

29:25 ↗ property tax sales and use one other

29:29 ↗ pieces I didn't mentioned earlier was

29:31 ↗ unanticipated grant revenue I think this

29:34 ↗ was the result of a parks capital

29:37 ↗ project that I believe probably was

29:42 ↗ anticipated but not fully recorded

29:45 ↗ within the budget at the time of

29:46 ↗ adoption and so we were off by that and

29:50 ↗ then on the under expenditures you can

29:54 ↗ see that half of that came from position

29:58 ↗ vacancies or as we filled positions if

30:03 ↗ we hired a less experienced more junior

30:07 ↗ person into a position where we had a

30:09 ↗ retirement of a more senior person they

30:11 ↗ may have started on the our pay scale at

30:13 ↗ a at a lower place we also had

30:17 ↗ professional services in our budget that

30:20 ↗ we under expended that sometimes is

30:23 ↗ because we got bids that were less we

30:26 ↗ were able to do the project for less

30:28 ↗ than we had thought or we didn't

30:31 ↗ complete a project and that project

30:35 ↗ either got done in-house or we may be

30:39 ↗ asking for it to be reappropriation 2019

30:42 ↗ and we'll we'll talk about those

30:43 ↗ projects in the next budget meeting I

30:46 ↗ think comes from a raise so can I just

30:49 ↗ get some clarification I don't need it

30:50 ↗ tonight but at some point I can find the

30:52 ↗ property tax change I can find the

30:53 ↗ retail sales

30:55 ↗ tax change I'm having a difficult time

30:56 ↗ in the detail finding the unanticipated

30:58 ↗ grant revenue and just like to be able

31:00 ↗ to understand where that's coming from

31:02 ↗ that would be very helpful thank you

31:03 ↗ absolutely next I'm sorry another

31:10 ↗ question from County Council deputy

31:12 ↗ president patisserie thank you

31:15 ↗ I just with the retail sales and use tax

31:18 ↗ just having that be a little bit

31:20 ↗ unexpected did you say that was sort of

31:22 ↗ on the use tax side of things was there

31:26 ↗ I was just wandering through it was any

31:28 ↗ more information and we can examine that

31:32 ↗ and see if we can get better detail I

31:34 ↗ just have it is the whole category okay

31:36 ↗ thank you

31:39 ↗ it's procedure thank you okay so this is

31:43 ↗ a breakdown of the entire budget by by

31:46 ↗ fund sort of the same same information

31:49 ↗ we've talked about with general fund and

31:53 ↗ you can see the amended budget for each

31:57 ↗ funds take water at the top there where

32:00 ↗ we're projecting to end the year that's

32:03 ↗ the variance and then on the right hand

32:06 ↗ side you can see bfb is beginning fund

32:09 ↗ balance so you can see where we started

32:12 ↗ with the fun at the beginning of this

32:14 ↗ budget year and then the projected

32:18 ↗ increase or decrease to that fund

32:20 ↗ balance based on revenues and

32:23 ↗ expenditures throughout the year and

32:25 ↗ also based on where we actually began

32:30 ↗ 2018 year and fund balance as opposed to

32:33 ↗ maybe just the adopted anticipated start

32:37 ↗ of fund balance for that fund and then

32:40 ↗ you can see how that results in the 2019

32:43 ↗ beginning fund balance which is shown in

32:46 ↗ your preliminary budget times I'm never

32:50 ↗ ray so just picking on water for just a

32:52 ↗ second so if I'm reading this correctly

32:54 ↗ and I'm not saying that I am we had one

32:58 ↗ point seven five seven million dollars

33:00 ↗ more in revenue than we anticipated and

33:02 ↗ we had

33:03 ↗ expenditures of $30,000 more than we

33:06 ↗ anticipated how did we end up with a

33:08 ↗ negative in projected increase or

33:11 ↗ decrease I would think we'd have a

33:12 ↗ positive yes again this is I think what

33:17 ↗ we probably should have given you is the

33:19 ↗ revised beginning fund balance for 2018

33:22 ↗ I think that's the difference that

33:24 ↗ perhaps that twelve million dollars was

33:26 ↗ the beginning fund balance where we were

33:29 ↗ when we adopted the budget and where

33:31 ↗ we're actually at now in the anticipated

33:34 ↗ fund balance for that fund then you

33:39 ↗ bring in those budget variances from

33:41 ↗ revenue and expenditures and you arrive

33:42 ↗ at the if you could just make the math

33:54 ↗ foot for me somehow weekly so we can

33:56 ↗ work on that sure and I appreciate this

34:00 ↗ new format in terms of where the

34:03 ↗ information is located and and I maybe

34:05 ↗ my fellow council members would disagree

34:07 ↗ but I personally would be easier if if

34:12 ↗ increases in a fund positive to fund is

34:15 ↗ positive and negative to fund is got

34:17 ↗ parentheses of it just charity okay

34:20 ↗ really really good yeah I think the the

34:23 ↗ big takeaway is that column on that for

34:25 ↗ our left of the amended budget it would

34:27 ↗ probably be helpful for us to show you

34:29 ↗ what the original adopted was because

34:32 ↗ that's that's a piece that's kind of

34:34 ↗ missing at this point of the story okay

34:38 ↗ and then we've also given you the big

34:43 ↗ macro views on these funds as well

34:46 ↗ street operating which is largely funded

34:48 ↗ through general fund type revenue

34:51 ↗ sources and a couple more utility funds

34:53 ↗ here sewer and stormwater you will see

34:58 ↗ and some of these funds where we have an

35:02 ↗ anticipated decrease to the fund balance

35:06 ↗ will be coming back to those funds in

35:09 ↗ your work session in Nova

35:11 ↗ to talk about what that means

35:15 ↗ long term some of these funds all the

35:19 ↗ sewer and stormwater for example on this

35:22 ↗ page are mixed operating in capital

35:25 ↗ funds now you'll recall we combined

35:27 ↗ those last year and so in some cases

35:30 ↗ we're taking from fund balance in order

35:33 ↗ to pre-fund projects on the capital side

35:35 ↗ yeah I would be particularly interested

35:38 ↗ when we have that conversation to

35:39 ↗ understand to what extent we've been

35:41 ↗ unable to execute our capital spend the

35:44 ↗ way that that we hope to and what's

35:46 ↗ going on with that and how it might look

35:48 ↗ different in 2019 questions all right

35:54 ↗ I'm moving from looking in the rearview

35:56 ↗ mirror I'm looking forward to 2019

36:00 ↗ mayor's budget focus at the start of the

36:04 ↗ budget was for us as staff to ensure

36:08 ↗ that we could maintain service levels

36:12 ↗ and quality of service and the direction

36:16 ↗ was to limit new requests and the reason

36:18 ↗ for that is because we're undertaking

36:22 ↗ strategic plan right at this moment and

36:24 ↗ we want to have that framework in mind

36:27 ↗ before we start major initiatives new

36:31 ↗ programs or service areas and so she she

36:35 ↗ said this is a maintenance budget this

36:37 ↗ is sort of a roll forward budget let's

36:39 ↗ do what we're doing and let's do it as

36:41 ↗ well as we can in 2019 but let's not

36:43 ↗ take on major new things

36:45 ↗ having said that mayor also became aware

36:49 ↗ of needs needs in terms of additional

36:52 ↗ staffing and additional resources for

36:56 ↗ staff so she called it her people in

36:59 ↗ tools focus and we'll talk more about

37:01 ↗ that particularly next workshop but that

37:05 ↗ was the framework that staff members

37:08 ↗ used as we developed the budget we

37:12 ↗ wanted to talk to you just a little bit

37:14 ↗ about the tool or the people side of

37:18 ↗ this framework and we wanted to share a

37:21 ↗ little staffing history with you this is

37:25 ↗ the reason why departments asked for

37:29 ↗ certain number of positions and why the

37:32 ↗ mayor chose to include some new staffing

37:34 ↗ in her proposed budget this is only

37:37 ↗ meant to illustrate history it's not

37:40 ↗ meant to describe what should have been

37:44 ↗ or what could have been and so

37:47 ↗ illustrative only the trend line versus

37:53 ↗ actual graph displays both the

37:55 ↗ authorized FTE numbers for city staff

37:58 ↗ and a projection based on historical

38:01 ↗ data authorized up T's does not equate

38:07 ↗ to the number that you might see in a

38:10 ↗ budget we've taken a look and tried to

38:13 ↗ combine in past years limited term

38:17 ↗ employees so LTS with FTEs and you'll

38:21 ↗ recall only a couple years ago we

38:22 ↗ started breaking out LTS from FTEs in a

38:26 ↗ way that you could track both pools

38:31 ↗ historical data we took from city's

38:34 ↗ budget documents 2005 to 2018 and that

38:39 ↗ contained into some FTE data as far back

38:42 ↗ as 1996 and you can go back and verify

38:46 ↗ what really happened in each of those

38:48 ↗ years

38:48 ↗ this is budget data not actuals so the

38:53 ↗ numbers from 1996 to 2009 were used to

38:57 ↗ create a pre recession trend line where

39:00 ↗ FTE growth averaged 3.6 percent a year

39:03 ↗ over that 14-year span he then projected

39:07 ↗ out that trend line until 2019

39:10 ↗ that's the dashed blue line to depict

39:13 ↗ what the FTE population could have been

39:17 ↗ without the Great Recession without

39:19 ↗ without without you know lots of caveats

39:21 ↗ there right actual FTE data from 2009 to

39:25 ↗ 2010 is shown in red and it shows F T's

39:29 ↗ that were authorized in nature's budget

39:31 ↗ with an additional data point for what's

39:34 ↗ proposed in 2019

39:37 ↗ so then I had if you look at those two

39:43 ↗ trend lines had staffing trend continued

39:47 ↗ post recession and that growth and staff

39:51 ↗ would have been 26% during that time

39:55 ↗ instead you can see that we responded to

39:59 ↗ the Great Recession by reducing staff

40:02 ↗ and have largely kept those staffing

40:05 ↗ levels constant until just recently as

40:08 ↗ we added back some positions and we are

40:10 ↗ now roughly at where we were at that

40:12 ↗ recession comes remember right so I know

40:16 ↗ you said this and I just missed it so

40:17 ↗ lt's or limited term positions we're not

40:20 ↗ putting in this this calculation so some

40:24 ↗ there's some level of staffing above the

40:26 ↗ red line that is reflects the term limit

40:30 ↗ folk right let me let me explain that a

40:32 ↗ little bit differently better hopefully

40:35 ↗ lt's have been included in the most

40:39 ↗ recent years from let's say 2012 ish

40:46 ↗ i believe we may not have LTS broken out

40:50 ↗ in a way that was easy for us to pull

40:53 ↗ that data having said that we have gone

40:55 ↗ back and we've looked at some budget

40:59 ↗ data that shows that it would have been

41:01 ↗ only a handful of positions so we didn't

41:04 ↗ have in 2000 let's say an extra 200

41:09 ↗ LTE's it would have just would have been

41:11 ↗ a small number it would not have changed

41:13 ↗ this trendline significantly don't

41:16 ↗ remember winters time thank you

41:18 ↗ this chart is interesting that it may

41:21 ↗ tell a lot of different stories one way

41:24 ↗ to understand the data a little bit

41:26 ↗ better would be if we could see this

41:31 ↗ data by Department reason because I

41:36 ↗ think but if my memory serves me

41:42 ↗ not all departments have scaled with

41:46 ↗ city growth like others have for example

41:50 ↗ I know for a fact that parks have stayed

41:51 ↗ really flat for a long time has for a

41:53 ↗ uni easy to look at parks and saying how

41:56 ↗ are you keeping up with all these new

41:58 ↗ properties that you have but other areas

42:00 ↗ we've created new ones and we've done

42:02 ↗ some shifting around but someone like

42:04 ↗ but police has been one where we have

42:06 ↗ incrementally have been adding resources

42:08 ↗ over time so this is an aggregate story

42:12 ↗ about headcount yep

42:14 ↗ but I think the the story about our

42:17 ↗ ability to scale our services to meet a

42:20 ↗ growing community and where we're maybe

42:22 ↗ falling behind and where we're maybe are

42:24 ↗ up to date is more clear when we look at

42:27 ↗ the department level sure and that's an

42:30 ↗ excellent point it will also say as you

42:33 ↗ mentioned we've added different

42:34 ↗ divisions we've added different programs

42:37 ↗ we've consolidated staff in different

42:39 ↗ ways we've moved them across department

42:42 ↗ lines as we've moved programmatic areas

42:44 ↗ from one department to another that

42:47 ↗ analysis is complex to get to apples to

42:51 ↗ apples so that you could see those

42:53 ↗ changes there are departments where it's

42:55 ↗ easier Police Department is very very

42:57 ↗ easy to look at historically and I think

43:01 ↗ you make an excellent point of having

43:03 ↗ just been selective about which

43:05 ↗ departments we have added staff to in

43:07 ↗ which departments we have maybe

43:09 ↗ contracted and and you're right that's

43:12 ↗ not up on this slide this was just meant

43:14 ↗ to illustrate a total thank you for that

43:20 ↗ but just so you know that that whereas I

43:24 ↗ find this data interesting as one of the

43:29 ↗ council members I look at that and say

43:30 ↗ but I think the story lies elsewhere

43:33 ↗ because I know things happen with DSD

43:36 ↗ things happen with Public Works

43:37 ↗ engineering and there's stories behind

43:40 ↗ all of those and so what this doesn't do

43:45 ↗ for me and I don't know I don't know if

43:46 ↗ this was the intent or not but it's like

43:49 ↗ hey we've been very conservative there

43:51 ↗ has been growth we haven't kept pace

43:53 ↗ from a staffing perspective

43:56 ↗ I'm not saying you were intended this or

43:59 ↗ not but it you know it's like okay

44:00 ↗ here's kind of a we're setting things up

44:03 ↗ for the ask that's in here I don't know

44:05 ↗ but for me the better story is when we

44:09 ↗ look at the department level so I'm not

44:11 ↗ this the only thing that I would add to

44:14 ↗ that is I'm I'm not aware and I have

44:18 ↗ shorter tenure than you do but I'm not

44:21 ↗ aware of departments that we have

44:23 ↗ stopped doing are certain major services

44:28 ↗ that we have stopped providing either I

44:31 ↗ hear your point and if at some point as

44:34 ↗ we do make that ask if there's a need to

44:36 ↗ look at apples to apples staffing growth

44:40 ↗ in a particular department or service

44:42 ↗ area we can we can talk about providing

44:44 ↗ that information we can go back I was

44:51 ↗ remembering so the other thing that

44:53 ↗ strikes me and this will just skew the

44:55 ↗ numbers but did you factor out a site

44:57 ↗ fire and rescue when we ended our fire

45:00 ↗ department because we actually did in

45:01 ↗ our fire department so and you see a dip

45:08 ↗ in 99 that's correct

45:10 ↗ yeah so I just want to make sure that we

45:13 ↗ accounted for that too absolutely other

45:16 ↗ questions right now all right thank you

45:20 ↗ so next we're just gonna overlay that on

45:25 ↗ on population as well and masoor story

45:31 ↗ here in terms of population has grown 40

45:35 ↗ percent since that that same moment in

45:38 ↗ time in the last decade and again

45:41 ↗ staffing level has stayed roughly the

45:45 ↗ same again this is just meant to

45:49 ↗ illustrate that the trends on staffing

45:54 ↗ against population growth and how that

46:01 ↗ that ratio has not kept pace with

46:06 ↗ population growth over that time but

46:08 ↗ we can look at it at service levels and

46:10 ↗ and toxic talk about units of service

46:12 ↗ that were attempting to deliver in each

46:14 ↗ group

46:21 ↗ all right so departments are feeling

46:26 ↗ that it's more difficult each year to

46:30 ↗ keep up with service demands and that

46:33 ↗ resulted in for all the years of my

46:37 ↗ tenure here quite a few asks in the

46:41 ↗ budget development process this year we

46:43 ↗ had nearly or approximately 30 positions

46:48 ↗ new positions that were requested during

46:50 ↗ budget development we have significantly

46:53 ↗ reduced that and what's shown in your

46:55 ↗ preliminary budget those totaled nearly

46:58 ↗ five million dollars of cost that is not

47:02 ↗ what we ended up in the preliminary

47:05 ↗ budget we're going to cover that in

47:06 ↗ greater detail next Monday on the tools

47:11 ↗ side of the people and tools framework

47:14 ↗ for the budget there were 50 projects

47:17 ↗ that were submitted these are all

47:19 ↗ technology-based projects we certainly

47:22 ↗ had other small equipment fleet requests

47:25 ↗ as well and we reduced that so we

47:29 ↗ started with a budget ask of over a

47:32 ↗ million dollars and we are only able to

47:35 ↗ afford a fraction of that and we'll talk

47:37 ↗ more about that on the 29th as well so

47:45 ↗ as we look to build the budget we do go

47:50 ↗ back and take a look at what our

47:51 ↗ long-term financial forecasts had to say

47:54 ↗ about where we thought we would be in

47:56 ↗ 2019 and this slide illustrates that the

48:02 ↗ baseline scenario that we utilized in

48:05 ↗ August for our financial retreat had

48:08 ↗ estimated the total general fund revenue

48:12 ↗ at fifty two point six million dollars

48:15 ↗ and a use of fund balance

48:18 ↗ as you can see from the preliminary

48:22 ↗ budget were pretty close to what that

48:23 ↗ financial forecast had estimated but

48:27 ↗ between the different categories are

48:28 ↗ slight differences and then we are not

48:31 ↗ utilizing any fund balance in this

48:33 ↗ preliminary budget on the expenditure

48:40 ↗ side again a pretty similar picture

48:43 ↗ baseline scenario had us at fifty two

48:47 ↗ point eight million dollars and

48:49 ↗ preliminary has this just a shade under

48:52 ↗ that again a little bit of deviation in

48:55 ↗ categories in particular some of our

48:59 ↗ transfer categories like Street and

49:02 ↗ capital projects are up and our other

49:08 ↗ operating is the bulk of the budget it's

49:11 ↗ all the staffing its supplies its

49:13 ↗ services dollars this is the way that we

49:17 ↗ showed it in the baseline scenario to

49:19 ↗ model it and so that's the way is shown

49:21 ↗ here we will be showing you the budget

49:23 ↗ in greater detail and in different ways

49:24 ↗ as we go forward other transfers in case

49:29 ↗ you're wondering includes transfers to

49:32 ↗ the sustainability fund unemployment

49:35 ↗ fund and water utility fund for the Main

49:40 ↗ Street tax program

49:47 ↗ the other thing that we do is we develop

49:49 ↗ the budget is we look back to our

49:51 ↗ financial management policies and we do

49:54 ↗ a little check to make sure that our

49:56 ↗ proposed budget is meeting those policy

49:59 ↗ targets or that we're identifying places

50:03 ↗ where we are going to need to spend more

50:06 ↗ time and effort to get in line with

50:08 ↗ those policy targets so these are the

50:10 ↗ big ones general fund balance target

50:13 ↗ policy is that we have 15 to 20 percent

50:16 ↗ of our expenditures and we are

50:20 ↗ significantly over that as projected now

50:24 ↗ you also have a financial management

50:27 ↗ policy that our ongoing expenditures are

50:30 ↗ funded by ongoing revenues and we've

50:32 ↗ done that by not using fund balance in

50:35 ↗ this preliminary budget next we have a

50:39 ↗ goal around debt that we limited to one

50:42 ↗ point five percent of the city's total

50:44 ↗ assessed value and at the end of the

50:48 ↗ last year and this is data that was

50:51 ↗ presented to you at the financial

50:53 ↗ retreat city had about eight million

50:55 ↗ dollars of outstanding council Manek

50:57 ↗ debt that's non voted debt and so

51:01 ↗ therefore we have still 144 million

51:04 ↗ dollars available in Cal sematic debt

51:07 ↗ capacity having said that that's not

51:10 ↗ necessarily sustainable not something

51:13 ↗ that we can afford but we're meeting

51:14 ↗ that target very easily and then we put

51:17 ↗ one up here to be transparent about the

51:21 ↗ fact that we do have some work to get in

51:23 ↗ line with our financial management

51:25 ↗ policies particularly as they relate to

51:27 ↗ internal service funds the policy says

51:31 ↗ that we shall have a reserve target but

51:34 ↗ staff has not brought forward a

51:37 ↗ suggestion for what those reserve

51:39 ↗ targets should be and Council has not

51:41 ↗ adopted a reserve level for those

51:44 ↗ internal service funds in order to do

51:48 ↗ that we also have some operating budget

51:51 ↗ work to do in order to establish what

51:53 ↗ capital replacement plans are going to

51:55 ↗ look like and a few of these funds we

51:57 ↗ give two examples here or the overall

52:00 ↗ struck

52:00 ↗ the fund or the cost allocation cost

52:03 ↗ accounting between funds that sets up

52:06 ↗ the structure for those funds so we have

52:07 ↗ a bunch of work to do better budgeting

52:12 ↗ in some of our smaller funds and in

52:16 ↗ particular those funds that help us to

52:19 ↗ keep our infrastructure going so I have

52:22 ↗ a question around that so as I look at

52:25 ↗ this a lot of this I think is great in

52:28 ↗ terms of the kinds of things that we

52:30 ↗ want to look at year over the the thing

52:33 ↗ that is maybe missing or not missing I'm

52:36 ↗ not sure when you talk about capital

52:38 ↗ replacement I think I mean you mentioned

52:41 ↗ IT and fleet I think back to former

52:45 ↗ accounts remember share who was always

52:47 ↗ talked about you know our our drain our

52:52 ↗ drained play services right and the fact

52:56 ↗ that at some point they're gonna have to

52:57 ↗ be replaced and the mechanism you know

53:00 ↗ yep to drive towards a goal of being

53:02 ↗ able to say you know we are you know

53:06 ↗ depreciating these assets by a certain

53:09 ↗ amount each year and understanding where

53:10 ↗ that is and that's the only piece of

53:12 ↗ this that I think as a as a dashboard of

53:14 ↗ wellness I that's the piece I feel like

53:16 ↗ is missing so when you talk about

53:17 ↗ capital depreciation you're talking

53:19 ↗ about some very specific smaller fun

53:20 ↗ things but I think there's also a

53:22 ↗ conversation about things that are in

53:25 ↗ the general fund or in some of the

53:27 ↗ larger funds you agree sure and I think

53:31 ↗ you're talking about the turf

53:32 ↗ replacement that type of a large ongoing

53:39 ↗ things that were wonderful that we put

53:41 ↗ in but that we don't presently budget

53:43 ↗ their replacements right right and so

53:46 ↗ some of those were tackling through our

53:47 ↗ capital budget others I'll explain these

53:51 ↗ two a little bit better detail for

53:55 ↗ example both IT in fleet cost

53:59 ↗ allocations right now their budgets are

54:01 ↗ built around the operating expenses for

54:08 ↗ the next year so we look at

54:12 ↗ in eyeties case what's the operating

54:15 ↗ budget for our IT staff and for the

54:18 ↗ repairs and maintenance work that we may

54:20 ↗ need to do and the special projects for

54:22 ↗ that year but if we look at PC

54:26 ↗ replacement we have not fully built out

54:29 ↗ a replacement plan that then adds an

54:32 ↗ increment to every year's budget in

54:34 ↗ order to make sure that we're keeping up

54:37 ↗ with the replacement schedule we have

54:41 ↗ periodically over the last few years put

54:44 ↗ a chunk of cash into the budget in order

54:46 ↗ to get caught up on replacements or to

54:50 ↗ begin a fund but we we have an every

54:54 ↗ year put aside the the right increment

54:57 ↗ of money that we need to keep on pace

54:59 ↗ with that the same is true with fleet

55:01 ↗ replacement we have not done a robust

55:04 ↗ replacement plan and where we're dealing

55:07 ↗ with replacements on a annual basis

55:10 ↗ you know what's due that year and can we

55:13 ↗ afford it this year any other questions

55:17 ↗ right now

55:23 ↗ okay we also wanted to take a look at

55:28 ↗ revenue overtime

55:31 ↗ this is revenue per capita in 2018

55:34 ↗ dollars the source of this data is the

55:38 ↗ annual financial statement from each

55:40 ↗ year from 2003 to 2006 teen and for 2017

55:46 ↗ through 2019 data we use information

55:50 ↗ from budget since we don't have

55:51 ↗ certified annual reports yet for those

55:55 ↗ years we provide this in the aggregate

56:01 ↗ as opposed to individual department

56:03 ↗ totals because we think that's that's a

56:07 ↗ it's a simplified way to look at it to

56:11 ↗ produce this actual curve we took the

56:13 ↗ the revenue in each of those years and

56:16 ↗ converted it to 2018 dollars we did that

56:19 ↗ using the Consumer Price Index from

56:24 ↗ Bureau of Labor Statistics for Seattle

56:27 ↗ and we used the August 2018 CPI let's

56:35 ↗ see what else so while our total

56:39 ↗ revenues have grown over time the our

56:44 ↗ population has also changed and that's

56:47 ↗ what causes this curve to peak around

56:50 ↗ 2004 when there were only about fifteen

56:53 ↗ thousand five hundred people in Issaquah

56:55 ↗ and today there are over 37,000 however

57:00 ↗ one important takeaway from this graph

57:03 ↗ is that the revenues per capita have

57:06 ↗ been relatively flat from 2010 to 2013

57:12 ↗ 19 projection uses the the budget data

57:15 ↗ that we have in the preliminary budget

57:17 ↗ but also factors in a 2.2 percent

57:20 ↗ increase in inflation and a 3 percent

57:24 ↗ growth in population that's what we've

57:27 ↗ averaged over the last six years so

57:31 ↗ there have been significant revenue

57:32 ↗ impacts statewide

57:34 ↗ since 1999 some examples of that have

57:37 ↗ been an initial repeal of the motor

57:40 ↗ vehicle excise tax property tax

57:43 ↗ limitation and of course the Great

57:46 ↗ Recession City property tax collection

57:48 ↗ has been below the rate of inflation

57:51 ↗ city has not added a new significant

57:55 ↗ revenue source during that time period

57:58 ↗ either although we have made adjustments

58:00 ↗ of course to find and fee structures we

58:04 ↗ had an increase in a B&O tax rate and

58:08 ↗ we've certainly had special bond levies

58:11 ↗ for example question

58:16 ↗ that's very interesting what revenues

58:22 ↗ are you talking about

58:24 ↗ I believe these are total revenues but

58:29 ↗ not from the enterprise funds don't

58:32 ↗ believe so total general fund just

58:38 ↗ general fund mm-hmm

58:45 ↗ okay likewise expenditure per capita

58:49 ↗ here same methodology that I explained

58:52 ↗ earlier spend ensures have a similar

58:55 ↗ drop from the early peak around 2004

58:58 ↗ when our population growth took off but

59:03 ↗ our spending

59:05 ↗ stayed relatively flat proportionally

59:08 ↗ from 2010 to 2013 this curve and

59:20 ↗ expenditure management has always been a

59:22 ↗ priority of this city but those

59:27 ↗ macroeconomic conditions and a need to

59:30 ↗ provide services for a growing

59:32 ↗ population and the fact that we are

59:36 ↗ service organizations so a huge chunk of

59:39 ↗ our budget is related to personnel costs

59:42 ↗ and we all know those haven't stayed

59:45 ↗ flat particularly when you look at the

59:47 ↗ cost of providing health benefits so

59:50 ↗ city governments just like ours are

59:53 ↗ always challenged with expenditures that

59:55 ↗ grow faster than revenues and in

59:58 ↗ Washington state municipalities like its

1:00:00 ↗ acquire particularly dependent on

1:00:02 ↗ economic development to drive increase

1:00:06 ↗ in revenue that therefore can support

1:00:08 ↗ increased need on the expenditure side

1:00:11 ↗ remember right so it really would be

1:00:13 ↗ helpful for me and again noting tonight

1:00:16 ↗ but if you give me the actual numbers

1:00:17 ↗ the table of the numbers inside of the

1:00:19 ↗ chart that would be super helpful okay

1:00:22 ↗ thank you don't remember we just diner

1:00:25 ↗ then comes going on tonight or

1:00:26 ↗ councilmember hunt and then comes under

1:00:28 ↗ winter's day on 2017 you mentioned that

1:00:31 ↗ that one is from the budget it's not the

1:00:33 ↗ actual right is it just 2018 okay 2017

1:00:41 ↗ because it was it's not certified yet in

1:00:44 ↗ our Kaffir financial report okay so if

1:00:47 ↗ even though it's not certified and we we

1:00:50 ↗ know for 2018 for example that the

1:00:52 ↗ difference in the revenue is going

1:00:53 ↗ there's going to be some

1:00:54 ↗ difference in the revenue versus what

1:00:56 ↗ was budgeted because 2017 it would be

1:00:59 ↗ good to know what it what it is although

1:01:03 ↗ it's not certified to get a sense for

1:01:04 ↗ how much that varies for the budgeted

1:01:06 ↗ this is the actual sure interest at two

1:01:11 ↗ comments first both this slide in the

1:01:16 ↗ previous one I think those are amazing

1:01:21 ↗ curves actually the fact that the

1:01:23 ↗ per-capita numbers could stay flat and

1:01:26 ↗ my second comment is it's not

1:01:30 ↗ coincidental that's when the

1:01:32 ↗ longest-tenured members of this council

1:01:33 ↗ actually started serving the last

1:01:41 ↗ clearly clearly you can see it before an

1:01:43 ↗ enacting right then we just put them

1:01:49 ↗ together because they look nice together

1:01:52 ↗ yes I like to comment on this a couple

1:01:55 ↗ things first of all I completely agree

1:01:56 ↗ come from Blair weirdness tine suppose

1:01:58 ↗ I'm the one who asked for these numbers

1:01:59 ↗ but this really does when people ask you

1:02:03 ↗ know are you just spending as much money

1:02:05 ↗ as you know government they just want to

1:02:07 ↗ spend all of our money well no you know

1:02:09 ↗ we provide services and over time those

1:02:12 ↗ services in real dollars as we scale the

1:02:14 ↗ organization have have you know been

1:02:17 ↗ flat for sometimes the second thing is

1:02:19 ↗ that of course that there's no hockey

1:02:21 ↗ stick for 2018 2019 and that this

1:02:24 ↗ maintenance budget that the mayor has

1:02:26 ↗ submitted is in fact you know it tells

1:02:29 ↗ that story here and then I want to

1:02:33 ↗ mention that an important factor is that

1:02:37 ↗ by by defining real dollars on CPI it

1:02:42 ↗ also sort of takes out the the benefit

1:02:46 ↗ that the community has seen by increased

1:02:48 ↗ housing prices now there is a CPI is not

1:02:51 ↗ driven off of housing prices right so if

1:02:53 ↗ we if we were doing this on the back of

1:02:55 ↗ the increase in housing value then we

1:02:59 ↗ would see this number trending up right

1:03:01 ↗ this is this is real by making it on

1:03:04 ↗ di and then the final thing that that I

1:03:07 ↗ really like about this is there's only

1:03:09 ↗ really one year where expenditures

1:03:13 ↗ exceed revenues right generally speaking

1:03:16 ↗ we've been able to you know keep

1:03:19 ↗ expenditures at or below revenue and

1:03:22 ↗ that one year was you know in the midst

1:03:24 ↗ is we were as we were diving into the

1:03:26 ↗ the Great Recession so I I really like

1:03:30 ↗ the fiscal restraint that this that this

1:03:32 ↗ chart shows that was that was before I

1:03:36 ↗ was on council other other questions see

1:03:46 ↗ a quizzical look anything no all right

1:03:49 ↗ okay and then we wanted to give you just

1:03:52 ↗ the big picture look on the general fund

1:03:55 ↗ this is the revenue side or what we've

1:03:58 ↗ referred to as resources often this is

1:04:01 ↗ the same pie chart that which was in the

1:04:03 ↗ budget in brief you can see it's a big

1:04:06 ↗ slice of purple up there that comes from

1:04:10 ↗ taxes next largest increment is from

1:04:14 ↗ charges for service charges for service

1:04:16 ↗ are you can think of that as the user

1:04:21 ↗ fees that participants or users of

1:04:25 ↗ different services pay directly for

1:04:27 ↗ those services and and I'm gonna take

1:04:35 ↗ that biggest slice of pie that's taxes

1:04:38 ↗ we're going to break that out a little

1:04:41 ↗ bit

1:04:41 ↗ Ruth talked about this in her

1:04:44 ↗ presentation as well you can see the our

1:04:48 ↗ biggest portion of taxes is coming from

1:04:52 ↗ sales and use which that's opposed with

1:04:57 ↗ local and regional and even national

1:05:01 ↗ economic conditions

1:05:08 ↗ it's a quick question

1:05:10 ↗ so do we find I mean I just don't know

1:05:12 ↗ historically that property taxes are

1:05:14 ↗ more stable and retail sales and use

1:05:16 ↗ more volatile or they both fairly

1:05:18 ↗ volatile both fairly stable I mean those

1:05:21 ↗ mean that makes up the lion's share of

1:05:23 ↗ the plan I I can't speak historically

1:05:27 ↗ for this community I can say my

1:05:31 ↗ experience elsewhere is that property

1:05:34 ↗ tax is considered a stable source for

1:05:36 ↗ sales and uses less so I asked how we

1:05:41 ↗ made a hundred and ten thousand dollars

1:05:43 ↗ off gambling it's a really good question

1:05:49 ↗ there's revenue share that's based on

1:05:53 ↗ what yeah sound like scratch tickets yes

1:05:58 ↗ Kristi is telling me pull tabs and

1:06:00 ↗ scratch games like lottery receipts yeah

1:06:04 ↗ that must be a lot of there must be a

1:06:06 ↗ lot more of that than I realized all

1:06:09 ↗ right thank you lastly we wanted to show

1:06:15 ↗ you the same sort of pie for expenditure

1:06:18 ↗ side of the general fund you can see

1:06:22 ↗ salary and wages is the biggest slice of

1:06:26 ↗ the pie I'm having the management

1:06:30 ↗ analysts do a little bit of research on

1:06:32 ↗ this I actually was quite surprised to

1:06:33 ↗ see this below 50%

1:06:36 ↗ and so I'm posing some questions about

1:06:39 ↗ whether why that's whether or not that's

1:06:41 ↗ the norm for similar municipalities it's

1:06:45 ↗ lower than then I've experienced I think

1:06:48 ↗ in part if you look at combining other

1:06:51 ↗ personnel maybe a chunk from services

1:06:54 ↗ where we're contracting out instead we

1:06:57 ↗ get closer to a number that I would have

1:07:00 ↗ expected helped understand a few these

1:07:05 ↗ labels services is professional services

1:07:08 ↗ so again contractual services it

1:07:12 ↗ includes our legal budget it includes

1:07:15 ↗ some of our communications

1:07:17 ↗ insurance and utilities payments from

1:07:22 ↗ the general fund supplies its office

1:07:25 ↗ supplies small tools and equipment

1:07:28 ↗ computer hardware and software a cost

1:07:32 ↗ allocation right now we have to cost

1:07:34 ↗ allocations that's IT and fleet

1:07:37 ↗ intergovernmental is our funding a fire

1:07:40 ↗ marshal position King County shoreline

1:07:43 ↗ Patrol Eastside Fire Rescue Arch workers

1:07:49 ↗ compensation Services election costs a

1:07:51 ↗ whole bucket of many small things other

1:07:54 ↗ operating costs includes travel rentals

1:07:59 ↗ and leases repairs and maintenance

1:08:01 ↗ scholarships and grants training

1:08:03 ↗ registration dues and subscriptions and

1:08:06 ↗ then other personnel is over time and

1:08:10 ↗ part time non regular wages so our

1:08:14 ↗ part-time staff

1:08:23 ↗ again a different way of looking at it

1:08:27 ↗ looking at our preliminary budget and

1:08:30 ↗ you'll see us use we're still not using

1:08:33 ↗ the right lingo everywhere will say

1:08:34 ↗ propose sometimes some preliminary other

1:08:36 ↗ times I mean the same thing so the

1:08:40 ↗ preliminary budget versus 2018 adopted

1:08:44 ↗ and I'm stressing that charges for

1:08:50 ↗ service taxes and transfers we are

1:08:54 ↗ projecting an increase or have built

1:08:58 ↗ into the budget an increase in revenue

1:09:00 ↗ but intergovernmental licenses and

1:09:03 ↗ permits we are projecting to be down

1:09:06 ↗ some budget to budget and here the in

1:09:11 ↗ taxes as we talked about that's mainly

1:09:14 ↗ coming from sales and use and a little

1:09:16 ↗ bit from business and occupancy charges

1:09:20 ↗ and services that increase is mainly

1:09:23 ↗ from plan check review services and

1:09:26 ↗ recreation fees so you can finish the

1:09:30 ↗ slide ok we're projecting a slight

1:09:35 ↗ decrease as you've seen on your revenue

1:09:38 ↗ summary in building permits it's a

1:09:41 ↗ conservative estimate we tend to be

1:09:42 ↗ conservative in that category because

1:09:45 ↗ sometimes permits come in earlier than

1:09:47 ↗ expected sometimes they come in later

1:09:49 ↗ and so that's really about timing and

1:09:53 ↗ but we we do analysis every year to look

1:09:56 ↗ at what's in the pipeline and try to

1:09:58 ↗ judge what permits they're going to

1:10:01 ↗ apply for what that will result in terms

1:10:04 ↗ of permit revenue and what's the timing

1:10:06 ↗ on all of that we're we're in a

1:10:10 ↗ particularly challenging time a good

1:10:13 ↗ time to try to project revenue but it is

1:10:16 ↗ challenging because this is a period of

1:10:18 ↗ unprecedented growth but we do see some

1:10:23 ↗ slight signs that

1:10:24 ↗ some things are slowing down and so we

1:10:28 ↗ do tend to be conservative prudent on

1:10:31 ↗ estimating our revenues have somewhat

1:10:36 ↗ understand

1:10:36 ↗ thank you since you came back to revenue

1:10:38 ↗ and I was one slide slow Cristina

1:10:40 ↗ whomever is driving could you go back to

1:10:42 ↗ slides thank you this this was the taxes

1:10:48 ↗ one okay that's fine

1:10:50 ↗ earlier this evening we had a public

1:10:52 ↗ hearing on revenue sources and I've

1:10:55 ↗ always found that a little bit

1:10:56 ↗ misleading so I just want to say this

1:10:59 ↗ publicly you can look at that you can

1:11:01 ↗ see we have components that are property

1:11:03 ↗ tax there's a component on sales tax

1:11:04 ↗ there's component being another big one

1:11:06 ↗ on business and occupation tax there are

1:11:09 ↗ other ways that we get for criminal

1:11:11 ↗ justice utility rates that that are

1:11:15 ↗ added to our bills for our utilities

1:11:16 ↗ like phone for example there's many

1:11:20 ↗ different ways that we as a city can

1:11:22 ↗ impact the numbers and the site the

1:11:24 ↗ slices of each of these pies but the

1:11:26 ↗ only question in front of us in this

1:11:28 ↗ budget season at all is the levy rate

1:11:31 ↗ that the city charges for property taxes

1:11:33 ↗ that's it right because I just want that

1:11:36 ↗ should be a very I mean the public

1:11:38 ↗ hearing was titled revenue sources right

1:11:40 ↗ and and and that's I don't know if it's

1:11:46 ↗ intended to cover all the potential

1:11:48 ↗ changes we could have as I can look at

1:11:50 ↗ there's many ways that we could affect

1:11:52 ↗ revenue but the only one we're

1:11:53 ↗ addressing is a potential 1% in property

1:11:57 ↗ tax that's correct

1:11:58 ↗ haven't we so I'm trying to remember in

1:12:01 ↗ pre there are years that we have looked

1:12:02 ↗ at being out but that wasn't part of the

1:12:05 ↗ budget process that was separate from

1:12:06 ↗ the budget or was that part of the

1:12:08 ↗ budget so some years it's been part

1:12:10 ↗ sometimes it's been separate there's no

1:12:14 ↗ rhyme or reason we can do it either way

1:12:17 ↗ other years in addition to you mentioned

1:12:20 ↗ bno as an example we have offered

1:12:24 ↗ suggestions to change

1:12:27 ↗ not on this slide I'll show you this

1:12:28 ↗ slide some new policy and therefore new

1:12:34 ↗ rate structures and fines and fees so we

1:12:40 ↗ have presented those options and the in

1:12:42 ↗ the past this particular budget we don't

1:12:47 ↗ have those recommendations in front of

1:12:49 ↗ you we lay out in the in the IMC there's

1:12:52 ↗ different rules governing these

1:12:54 ↗ different sources and the time at which

1:12:56 ↗ you can present recommendations to make

1:12:59 ↗ changes so we're choosing this here the

1:13:03 ↗ administration is choosing to make that

1:13:04 ↗ 1% recommendation and choosing not to

1:13:06 ↗ suggest to change in Vienna correct at

1:13:09 ↗ this point in the year I will also say

1:13:12 ↗ just be fully transparent that the mayor

1:13:16 ↗ has some level of authority as well to

1:13:19 ↗ make some adjustments on rates for

1:13:24 ↗ example I think if you look at rec fees

1:13:27 ↗ she has the ability to adjust

1:13:29 ↗ non-resident rates up to a certain

1:13:33 ↗ percent increase so it depends on the

1:13:37 ↗ revenue source so if we really give in a

1:13:39 ↗ jam you know those pool fees okay as an

1:13:43 ↗ example

1:13:44 ↗ thank you for that explanation sure

1:13:46 ↗ other questions right now okay okay so

1:13:52 ↗ that leads to the punchline you have one

1:13:59 ↗ question on this one why are

1:14:00 ↗ intergovernmental revenues down so

1:14:04 ↗ significantly in 2019 s preliminary

1:14:07 ↗ budget I in part they're due

1:14:12 ↗ they're down due to state law changing

1:14:15 ↗ on the streamline sales tax that's the

1:14:21 ↗ biggest chunk great things did we get

1:14:25 ↗ was there disadvantage rule change does

1:14:28 ↗ it disadvantageous rule change

1:14:30 ↗ yes I think cities lobbyists had spoken

1:14:34 ↗ about that Doug levy over the course of

1:14:36 ↗ the legislative session it's a it's a

1:14:38 ↗ multi-year

1:14:39 ↗ faizon plan to reduce our revenue and I

1:14:46 ↗ can get you more information about how

1:14:48 ↗ much is expected each year I think I

1:14:52 ↗ think this is the second to last year of

1:14:55 ↗ that reduction if I recall correctly so

1:15:01 ↗ that does lead us to punchline here

1:15:04 ↗ and this sets up the conversation for

1:15:07 ↗ our next budget work session where we

1:15:10 ↗ will talk in greater depth about the

1:15:12 ↗ expenditure side of the general fund

1:15:15 ↗ that 1.7 million dollars of new revenue

1:15:19 ↗ is the amount that we had to work with

1:15:21 ↗ in the budget

1:15:23 ↗ so after departments came and presented

1:15:27 ↗ their 30 new staffing positions and

1:15:30 ↗ their five million dollars of IT

1:15:32 ↗ requests we then had to turn back to

1:15:36 ↗ them and say ok and we have 1.7 million

1:15:40 ↗ dollars of ongoing recurring revenue

1:15:45 ↗ that can support any new adds to the

1:15:48 ↗ budget and this year we worked very very

1:15:52 ↗ hard to get expenditures in line with

1:15:55 ↗ that revenue forecast so 1.7 million

1:15:58 ↗ dollars is not a lot for the the needs

1:16:03 ↗ that I think we were trying to meet this

1:16:04 ↗ year questions

1:16:12 ↗ right that's it I thought it would be on

1:16:15 ↗ the quick side

1:16:17 ↗ I don't think next Monday will be quite

1:16:19 ↗ as fast hopefully you'll hear from other

1:16:22 ↗ people besides me next week I feel bad

1:16:26 ↗ that members of the public left maybe

1:16:27 ↗ only 15 or 20 minutes before how they

1:16:29 ↗ stayed a little longer they could have

1:16:31 ↗ overcome it but oh well

1:16:36 ↗ alright well thank you very much do you

1:16:38 ↗ want to talk a little bit of give us a

1:16:40 ↗ little bit of a heads up for the next

1:16:41 ↗ one

1:16:42 ↗ sure so we will be spending more time

1:16:44 ↗ talking about expenditures we will be

1:16:48 ↗ covering the new staffing requests you

1:16:53 ↗ pull that up real quick take a look at

1:16:55 ↗ that first page the 29th

1:16:58 ↗ oh yeah the calendar will work that

1:17:00 ↗ annotated one so we'll be talking about

1:17:03 ↗ that that the biggest changes on the

1:17:06 ↗ expenditure sites will talk about

1:17:08 ↗ staffing costs

1:17:09 ↗ well there were very limited number of

1:17:13 ↗ regulatory changes that dictated

1:17:17 ↗ additions to the budget so we won't have

1:17:21 ↗ much to report on that front we're past

1:17:23 ↗ years we have we will be also down one

1:17:29 ↗ more 29th

1:17:33 ↗ we're gonna cover Department work plans

1:17:35 ↗ so you'll get a sense of what we put in

1:17:37 ↗ the budget in particular where we're

1:17:41 ↗ we've also included professional

1:17:43 ↗ services in order to support those tasks

1:17:46 ↗ we're gonna cover some of the things

1:17:48 ↗ that weren't included in the base budget

1:17:50 ↗ we're going to maybe talk a little bit

1:17:52 ↗ about if those are high priorities for

1:17:55 ↗ council and community ways that we could

1:17:57 ↗ do some of those by utilization and fund

1:18:01 ↗ balance and we will start to scratch the

1:18:03 ↗ service I believe on capital projects

1:18:06 ↗ and debt assumptions I expect that

1:18:08 ↗ conversation and carry over to the next

1:18:11 ↗ work session because we have some

1:18:13 ↗ significant gaps in our capital planning

1:18:17 ↗ comes up every winters time yeah one

1:18:20 ↗ comment one one question my comment is

1:18:22 ↗ there's a lot to like in this

1:18:24 ↗ budget as proposed and I do appreciate

1:18:27 ↗ the very clear policy objective of

1:18:31 ↗ making sure that our ongoing

1:18:33 ↗ expenditures are covered by ongoing

1:18:35 ↗ revenues and then to deliver something

1:18:38 ↗ that meets that objective that makes

1:18:42 ↗ things a lot easier and so I'm pleased

1:18:46 ↗ with that my question is and you started

1:18:49 ↗ to address it Emily right here at the

1:18:51 ↗ end and I feel like I should know the

1:18:53 ↗ answer to this so it's a little bit

1:18:55 ↗ revealing a little bit embarrassing I

1:18:57 ↗ guess we start by saying at the state

1:19:01 ↗ level we know they do an operational

1:19:02 ↗ budget and completely separate they do a

1:19:03 ↗ capital budget and ours are rather

1:19:05 ↗ weaved in between it seems that we have

1:19:09 ↗ a capital plan that has projects

1:19:12 ↗ expenditures timelines and revenue

1:19:15 ↗ sources but then it's every year I think

1:19:17 ↗ within our this operational budget that

1:19:21 ↗ we take a slice out part of the what we

1:19:24 ↗ call this operational budget there's a

1:19:26 ↗ slice of it as oh by the way this is the

1:19:28 ↗ part that's going to implement this

1:19:30 ↗ year's capital plan right and and I

1:19:34 ↗ guess I just I guess I do understand it

1:19:37 ↗ my ass then would be would be that the

1:19:40 ↗ more clear that delineation could be

1:19:43 ↗ made the better it would be great to be

1:19:46 ↗ able to if I could say clearly like okay

1:19:50 ↗ so in front of us right now is the

1:19:52 ↗ question of approval for a capital plan

1:19:56 ↗ for this part of our for the 2019

1:20:00 ↗ whatever that is now even if there's

1:20:03 ↗ some carryover from 2018 or whatever I

1:20:05 ↗ can say in front of us here's a part

1:20:07 ↗ that's for capital for 2019 and I can

1:20:10 ↗ then open up that capital budget book at

1:20:12 ↗ any time and say this is what we're

1:20:14 ↗ talking about funding unless there may

1:20:16 ↗ be some changes of course but but that I

1:20:18 ↗ guess so that's my as much as anything

1:20:20 ↗ because I know historically we've taken

1:20:23 ↗ capital and we will see those plans

1:20:26 ↗ would at a department level for example

1:20:28 ↗ or there might be and then streets might

1:20:30 ↗ be off by itself and some other things

1:20:32 ↗ but it was never been easy to see all of

1:20:35 ↗ capital

1:20:36 ↗ one place I think with the capital plan

1:20:39 ↗ that we have with seeing the funding

1:20:43 ↗ part that we work on right now it should

1:20:46 ↗ be hopefully should be just very easy to

1:20:48 ↗ line things up and say here's the

1:20:50 ↗ question in front of us for funding to

1:20:52 ↗ do this part of our capital plan yeah so

1:20:54 ↗ I think it's easy to see the picture I

1:20:57 ↗ think it will be a much more difficult

1:20:59 ↗ conversation to have about how we're

1:21:06 ↗ going to proceed with the capital plan

1:21:07 ↗ for 2019 so let me give you an example

1:21:10 ↗ when we adopted the capital improvement

1:21:13 ↗ plan there were three projects shown in

1:21:18 ↗ 2019 which at that point was year 2 of

1:21:21 ↗ the plan that were unfunded in whole or

1:21:24 ↗ in part

1:21:25 ↗ so those projects have not technically

1:21:29 ↗ been included in this proposed budget

1:21:31 ↗ because they were unfunded and then just

1:21:34 ↗ that added a layer of complexity so an

1:21:37 ↗ idea of why I think it's gonna take a

1:21:38 ↗ couple meetings at least and why we I'm

1:21:41 ↗ gonna suggest we may even have to extend

1:21:45 ↗ the conversation on the capital

1:21:46 ↗ component of the budget beyond budgeted

1:21:49 ↗ option perhaps is because we've also had

1:21:53 ↗ things have happened between now and

1:21:55 ↗ adoption of the capital budget so for

1:21:58 ↗ example we have a project where we had

1:22:02 ↗ anticipated it would be fully funded

1:22:04 ↗ maybe but that was dependent upon

1:22:09 ↗ getting a grant a grant that we did not

1:22:11 ↗ get so now that gets added to the

1:22:14 ↗ unfunded list and the work plan in that

1:22:18 ↗ implementing Department included you

1:22:23 ↗ know work on that project and so we need

1:22:25 ↗ to decide are we gonna are we gonna

1:22:27 ↗ allocate to that and also both in terms

1:22:30 ↗ of dollars in staff time and and to what

1:22:34 ↗ end because we didn't receive the grant

1:22:36 ↗ that really enables that whole next

1:22:38 ↗ phase of that project to go so it I'm

1:22:40 ↗ sharing this only because where I said

1:22:42 ↗ it it looks fairly complex and it's

1:22:46 ↗ seems like we could probably get bogged

1:22:50 ↗ down in a conversation about how to go

1:22:52 ↗ about funding capital some of those gaps

1:22:53 ↗ are quite large and may not be able to

1:22:58 ↗ be satisfied through a single funding

1:23:01 ↗ source or a funding source that would

1:23:04 ↗ not require voter approval for example

1:23:08 ↗ thank you

1:23:09 ↗ we did have the financial retreat right

1:23:13 ↗ so the picture of having a capital plan

1:23:17 ↗ that's not fully funded is not news to

1:23:19 ↗ anybody so I didn't so my dad for not

1:23:21 ↗ saying that earlier I certainly I

1:23:23 ↗ recognize I know that with this

1:23:25 ↗ operational budget word there are not

1:23:27 ↗ going to be capped they're not going to

1:23:28 ↗ be capital dollars in this budget to do

1:23:32 ↗ everything that we had adopted in our

1:23:36 ↗ capital plan and I but I did try to slip

1:23:38 ↗ in there and changes because I know

1:23:39 ↗ change is happening but that so aside

1:23:45 ↗ from this exercise we're going through

1:23:48 ↗ now I am anticipating and I don't think

1:23:52 ↗ this is news at all that there will be

1:23:54 ↗ another stream in which we do make a

1:23:58 ↗ decision or not about another funding

1:24:01 ↗ source to cover the known gap for at

1:24:05 ↗ least for just for transportation

1:24:07 ↗ projects so so I know that so I don't

1:24:11 ↗ expect those there to be revenue to line

1:24:13 ↗ up for every all the anticipated

1:24:16 ↗ expenditures and I do expect there to be

1:24:18 ↗ potential changes I'll leave it up for

1:24:19 ↗ you to how to package and deliver that

1:24:21 ↗ but but i but it would be good this is a

1:24:23 ↗ good marker and a good place at which to

1:24:25 ↗ have a nice summary of the capital

1:24:28 ↗ picture yes there are planned projects

1:24:30 ↗ there's expenditures there are things

1:24:31 ↗ relative to budget that they've already

1:24:33 ↗ done and then here's the revenue we have

1:24:34 ↗ in this budget and here's our maybe our

1:24:37 ↗ updated forecast of what the gap would

1:24:39 ↗ be that would be very helpful

1:24:45 ↗ sorry thank you for that what you're

1:24:47 ↗ saying come to member Ramos yes thank

1:24:50 ↗ you so just kind of clear it in clarity

1:24:53 ↗ in other words so positions that we

1:24:57 ↗ approve like the slashers such as

1:24:59 ↗ additional police officers and so forth

1:25:00 ↗ those are all included in this base

1:25:03 ↗ budget if you have a preliminary budget

1:25:05 ↗ and with all those changes then where's

1:25:09 ↗ the 1.7 million in additional revenue

1:25:11 ↗ that that then we're gonna see when you

1:25:14 ↗ bring it is additional things mainly to

1:25:17 ↗ the operating budget additional

1:25:18 ↗ positions you talked about staffing

1:25:20 ↗ average tools those people tools thing

1:25:22 ↗ are going to come into this 1.7 million

1:25:24 ↗ all right and then to lead off on that

1:25:27 ↗ and then we're gonna look at that

1:25:28 ↗ capital side because that's these those

1:25:30 ↗ are the ongoing costs and revenue and

1:25:33 ↗ then looking at ending fund balance or

1:25:36 ↗ other ways to fund some of those capital

1:25:38 ↗ things that we talked about such as

1:25:40 ↗ things that might have gotten unfunded

1:25:42 ↗ place if we may got grants who didn't

1:25:44 ↗ expect whatever all those pictures into

1:25:45 ↗ the capital side will be digging into

1:25:47 ↗ another side of that not including the

1:25:50 ↗ 1.7 because that's more towards the

1:25:52 ↗ operational tools and people side

1:25:53 ↗ correct correct yes Clara from recurring

1:25:57 ↗ yeah other comments questions a couple

1:26:01 ↗ things first off thank you and your

1:26:04 ↗ staff this is a good start there's a lot

1:26:06 ↗ of new faces involved in the budget this

1:26:08 ↗ year and it's just one person's opinion

1:26:12 ↗ that it's going very smoothly given all

1:26:14 ↗ the other new people involved in the

1:26:16 ↗ budget but of course see how these go I

1:26:19 ↗ also want to mention that our next

1:26:22 ↗ meeting for the council is tomorrow

1:26:24 ↗ we've got a council Committee of the

1:26:26 ↗ Whole meeting at 6:30 p.m. here in

1:26:28 ↗ Council Chambers it's not projected to

1:26:31 ↗ be a super long meeting but you never

1:26:34 ↗ know till it ain't over till it's over

1:26:38 ↗ thank you the only thing that you

1:26:41 ↗ trigger a memory for me I had hoped as

1:26:47 ↗ we were kind of talking about new format

1:26:50 ↗ and new process and multi-year

1:26:53 ↗ multi-step improvements that we're

1:26:56 ↗ undertaking part part of how we are

1:26:59 ↗ going to get better at this each year is

1:27:02 ↗ of course getting this feedback from all

1:27:04 ↗ of you about what you would like to see

1:27:06 ↗ how you would like to see it or

1:27:09 ↗ councilmember Ray had offered previously

1:27:12 ↗ a couple of suggestions on report

1:27:15 ↗ formatting any of that will take and as

1:27:20 ↗ we're able to implement them we shall

1:27:23 ↗ thank you that we are adjourned

1:27:26 ↗ Thanks

1:27:31 ↗ you

1:27:41 ↗ you

Approved minutes

Extracted from the next meeting's packet, where this meeting's minutes were approved as a consent-calendar attachment.

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Attendance

Council / Members (7)

Mariah Bettise

Stacy Goodman

Victoria Hunt

Tola Marts

Bill Ramos

Chris Reh

Paul Winterstein

Staff (3)

Mary Lou Pauly, Mayor

Emily Moon, City Administrator

Tisha Gieser, Deputy City Clerk