[00:00:02]
AND AGAIN, THANK YOU ALL FOR PARTICIPATING IN OUR INAUGURAL [INAUDIBLE] CITIZENS[1. CALL TO ORDER]
OVERSIGHT. I WILL, SINCE WE DON'T HAVE A CHAIR AT THIS POINT I WILL GO INTO ALL THE MEETING TO ORDER AND ASK FOR ROLL CALL.[2. ROLL CALL Committee Members: Daniel Annabi, Marlene Carney, Keny Chang, Ron White and Dave Zystra.]
DANIEL ANNABI. YES, I'M HERE.AND IT'S CARNEY. I SEE THAT I THOUGH THAT WAS WE WILL CORRECT THAT.
YES I'M HERE. VERY GOOD OKAY WE HAVE YOU ALL HERE.
HAVE YOU RECEIVED ANY REQUESTS FOR PUBLIC COMMENT UP TO THIS POINT? WE HAVE NOT RECEIVED ANY REQUESTS FOR PUBLIC COMMENT FOR THIS MEETING.
WE WILL CHECK IN ONE MORE TIME.
LUPE IS MONITORING IT AT HER DESK.
BUT THIS WOULD BE THE OPPORTUNITY FOR PUBLIC COMMENT SHOULD WE HAVE ANY.
OUR FIRST ORDER OF BUSINESS IS FOR YOU ALL TO TAKE THE OATH OF OFFICE.
[a. Oath of Office]
WHICH RATHER THAN DOING IT INDIVIDUALLY I THINK WE CAN DO IT AS A GROUP AND WHENEVER YOU SAY STATE YOUR NAME I'LL SAY STATE YOUR NAME? AND SO I WILL ASK LUPE TO GO AHEAD AND READ THAT OATH OF OFFICE.AND HAVE YOU ALL RECITE IT AFTER HER.
PLEASE ALL FIVE OF YOU RAISE YOUR HAND.
YOU ALL HAVE RECEIVED THE OATH OFFICE THAT WE NOW [INAUDIBLE] CORRECT? OK. YES. REPEAT AFTER ME.
SOLEMNLY SWEAR. SOLEMNLY SWEAR THAT I WILL SUPPORT.
AND DEFEND THE CONSTITUTION OF THE UNITED STATES.
AND THE CONSTITUTION OF THE UNITED STATES.
AND THE CONSTITUTION OF THE STATE OF CALIFORNIA.
AND THE CONSTITUTION OF THE STATE OF CALIFORNIA.
AGAINST ALL ENEMIES. AGAINST ALL ENEMIES.
AND THAT I WILL BEAR TRUE FAITH.
AND THAT I WILL BEAR TRUE FAITH.
TO THE CONSTITUTION OF THE UNITED STATES.
TO THE CONSTITUTION OF THE UNITED STATES. AND THE CONSTITUTION OF THE STATE OF CALIFORNIA. AND THE CONSTITUTION OF THE STATE OF CALIFORNIA.
I TAKE THIS OBLIGATION FREELY.
I TAKE THIS OBLIGATION FREELY.
WITHOUT ANY MENTAL RESERVATION.
WITHOUT ANY MENTAL RESERVATION OR PURPOSE OF EVASION.
WILL. [INAUDIBLE] AND DUTIES UPON WHICH I AM ABOUT TO ENTER. OK.
MEMBER OF THE OVERSIGHT COMMITTEE OF THE CITY OF LAVERNE.
AND WHEN DO YOU NEED THOSE 700'S ACCEPTING OFFICE.
I THINK YOU CAN GET IT BACK TO US BY NEXT WEEK.
ALL RIGHT. I KNOW I ALREADY DONE SOME INTRODUCTIONS OF MARK AND THE TEAM HERE, AND I JUST AGAIN, AS WITH EVERYTHING ELSE WHERE I AM RIGHT NOW, I APOLOGIZE FOR THIS KIND OF DISTANT MEETING. AND THIS BEING OUR FIRST OPPORTUNITY TO ENGAGE WITH YOU ALL.
I WOULD CERTAINLY ASK AND ENCOURAGE AS WE'RE MOVING INTO THIS NEW OPPORTUNITY OF ENGAGEMENT RELATIVE TO THE TAX MEASURE AND THE FUNDING THAT WE'RE RECEIVING.
MY JOB AND OUR ROLE IS TO MAKE SURE WE'RE GIVING YOU THE INFORMATION RELATIVE TO THAT, THAT YOU FEEL CONFIDENT IN THE PROJECTIONS AND THE INFORMATION.
SO CERTAINLY IF THERE'S SOMETHING THAT YOU THINK WOULD BE HELPFUL, WE WOULD ENCOURAGE YOU TO LET US KNOW. WE'RE GOING TO GIVE YOU, WHAT WE THINK IS NECESSARY.
BUT IF THERE ARE OTHER THINGS, DON'T HESITATE TO REACH OUT, WHETHER IT BE TO MARK OR MYSELF OR EVEN CHRISTY AND ASK US.
SO AGAIN AS WE GO THROUGH THIS, YOU'RE CHARGES TO GIVE A GOOD RECOMMENDATION TO THE COUNCIL. AND IN ORDER TO DO THAT, YOU NEED TO HAVE THE INFORMATION THAT YOU FEEL FITS WITHIN THAT. SO I JUST OFFER THAT UP TO YOU AS WE MOVE INTO.
[00:05:01]
THE FIRST ORDER OF BUSINESS IS ELECTION OF A CHAIRPERSON AND A VICE CHAIR.[b. Election of Chairperson and Vice-Chairperson]
SO WITH THAT, I WILL OPEN IT UP TO THE BOARD FOR NOMINATIONS.OKAY. WELL, ARE THERE ANY OBJECTIONS TO THAT MOTION AND SECOND.
WELL DANIEL CONGRATULATIONS, YOU ARE NOW THE CHAIR OF THIS COMMITTEE.
ALL RIGHT. THANK YOU. I'LL HAND THE TORCH OVER TO YOU AT THIS POINT.
[LAUGHTER] OH, WE NEED TO NOW NOMINATE A VICE CHAIR TO SERVE IN A CAPACITY I CAN'T IMAGINE THERE WOULD BE CONFLICT OR [INAUDIBLE] WOULD LIKE TO TAKE THAT.
WOULD ANYBODY LIKE. YOU WANTED A NOMINATION FOR THE VICE CHAIRMAN? PLEASE. MARLENE CARNEY.
I'M JUST PICKING NAMES I DON'T KNOW ANY OF YOU.
OKAY, DO I HAVE ANY OTHER NOMINATIONS? OK. ANY OBJECTIONS TO THAT? OTHERWISE, CAN I GET AN AYE? AYE. SO CONGRATULATIONS, MARLENE.
THANK YOU. CHAIR AND CHAIR, OK? DANIEL, WOULD YOU LIKE TO TAKE IT OR WOULD YOU LIKE ME TO GO THROUGH IT WHATEVER YOUR PREFERENCE IS AS FAR AS MOVING THROUGH THE AGENDA? YEAH, YOU CAN MOVE THROUGH IT. OKAY.
AND YOU AND I CAN KIND OF WORK THROUGH FOR FUTURE MEETINGS AND GO FROM THERE.
[c. Approval of By-Laws (Exhibit A)]
APPROVAL OF THE BYLAWS FOR THIS GROUP.AND THE BYLAWS THAT WERE ESTABLISHED, AT LEAST IN THEIR INITIAL CONTACTS, WERE AN APPENDIX FROM WHEN THE COUNCIL ADOPTED THE SPENDING GUIDELINES FOR THIS COMMITTEE BACK IN DECEMBER. SO WE'VE ATTACHED WHAT THOSE BYLAWS, BASED ON THEIR RECOMMENDATION AND APPROVAL WERE AND I THOUGHT THE FIRST APPROPRIATE STEP WAS TO OUTLINE OVER IS TO AT LEAST GET THOSE TO YOU TO GO THROUGH.
IF NOTHING ELSE TO HAVE EITHER A DISCUSSION OR A QUESTION ON HOW WE FUNCTION OR THINGS THAT MAYBE NEED TO BE ADDED TO CLARIFY.
[INAUDIBLE]. WE CAN MODIFY LATER ON, BUT THEY ARE KIND OF THE INITIAL STEP THAT THE COUNCIL HAS ESTABLISHED.
OR RECOMMENDED CHANGES AT THIS POINT.
GOOD. CAN I AT LEAST A MOTION AND A SECOND AND AN APPROVAL OF THE BYLAWS AS THEY ARE PRESENTED. I WILL MAKE A MOTION THAT WE APPROVE THE CITIZEN OVERSIGHT COMMITTEE BYLAWS AS PRESENTED. I'LL SECOND.
WAS THAT DAVE THAT SAID [INAUDIBLE].
ANY OPPOSITION? ALL THOSE IN FAVOR.
AYE. THANK YOU. OK. WE'RE OFF AND RUNNING.
HERE'S OUR FIRST ORDER OF BUSINESS.
THE SECOND ORDER OF BUSINESS. THE NEXT ITEM WE HAVE, WHICH IS UNDER DISCUSSION, IS THE
[a. Overview of Measure LV Spending Guidelines]
SPENDING GUIDELINES. THAT WAS ALSO IN YOUR PACKET AND THAT WAS THE TWO PAGE OUTLINE.THAT WAS ALSO INCLUDED IN THE APPROVAL OF THE RECOMMENDATION WHEN COUNCIL ADOPTED THIS OR ASKED TO HAVE THIS PUT ON THE AGENDA.
FOR THE BENEFIT OF THIS GROUP AS WELL AS THE PUBLIC.
THESE ARE GUIDELINES THAT WERE ADOPTED BY A RESOLUTION.
THEY WERE NOT INCORPORATED INTO THE TAX MEASURE ITSELF.
AND THAT WAS INTENDED BECAUSE THAT WOULD HAVE MADE IT A SPECIAL TAX, BECAUSE IT HAD A SPECIFIC PURPOSE THAT IT WAS BEING USED FOR [INAUDIBLE] A GENERAL FUND OR A GENERAL TAX.
[00:10:04]
BUT THEN THIS WAS THE INTENT OF HOW THOSE DOLLARS OUGHT TO BE SPENT BY THE COUNCIL.THAT'S WHY IT'S A SEPARATE DOCUMENT, BUT IT IS ALSO PARALLEL TO THE TAX MEASURE ITSELF.
BUT IT IS CERTAINLY THE GUIDANCE THAT THEY ARE GIVING TO YOU IN YOUR [INAUDIBLE] AS TO HOW THEY WISH FOR THESE DOLLAR SPENDING TO BE VETTED AND SPENT.
AND I THINK THE PREDOMINANT DISTINCTION THAT I SEE HERE AS THEY WERE BEING ESTABLISHED IS TIER ONE IS KIND OF THE ABSOLUTE THAT IS THOSE DOLLARS WILL FIRST BE USED FOR THAT AND THEN ANY OPPORTUNITY.
AND I WILL TELL YOU RIGHT OFF THE BAT, THERE WILL NOT BE ANY ADDITIONAL DOLLARS.
[INAUDIBLE] BUT IF THERE ARE EVER OPPORTUNITY FOR ANY ADDITIONAL DOLLARS TO BE SPENT WE WOULD LOOK INTO TIER TWO.
SO THEN THESE ARE THE AREAS THAT TIER TWO THAT YOU SEE LISTED HERE OF WHERE OPPORTUNITIES OF DOLLARS WILL BE SPENT. I WILL EXPLAIN [INAUDIBLE] HOW THIS FITS INTO OUR BUDGET PROCESS, BUT JUST TO UNDERSTAND WHAT THE SPENDING GUIDELINES ARE THAT ARE ESTABLISHED AND THE TWO DISTINCTIONS BETWEEN THE TWO TIERS.
I WOULD EXPECT IN THE FIRST TIER WE WILL GIVE YOU PROJECTIONS.
WE'LL TELL YOU WHAT THE INCREASES ARE LOOKING LIKE AND HOW MUCH WE EXPECT WE'LL USE ON A YEARLY BASIS.
TIER TWO WHEN WE DO BRING SOMETHING FORWARD WE'LL HAVE AN EXPLANATION OF WHERE WE SEE IT FITS INTO ONE OF THESE CATEGORIES.
AND IT WILL BE UP TO THE COMMITTEE THEN TO MAKE A RECOMMENDATION ON WHETHER THAT EXPENDITURE SHOULD BE SPENT OUT OF THESE DOLLARS.
IT'LL BE UP TO THE COUNCIL TO DECIDE,IF YOU SAY NO TO SAY WE NEED THESE DOLLARS ELSEWHERE OR JUST NOT SUPPORT THAT EXPENDITURE ALTOGETHER.
OUT OF OTHER GENERAL FUND DOLLARS.
SO THAT'S HOW IT WILL FIT INTO OUR OVERALL [INAUDIBLE] SO QUESTION ON THE WITH THE COVID 19, DO WE ANTICIPATE ANY REVENUES COMING NOW WILL BE EXCLUSIVELY NECESSARY FOR TIER ONE? WE DON'T EXPECT, WE THINK THE NEED WAS SO GREAT AT TIER ONE THAT WE DON'T EXPECT ACCESS IN TIER TWO. WELL, WE WILL HAVE AND I'LL GET INTO THIS PRELIMINARY BUDGET.
I'LL GIVE YOU A SNAPSHOT OF THE BUDGET THAT I ALREADY THE PRELIMINARY THAT I SHOWED TO COUNCIL. WE WILL NOT BE USING WHAT [INAUDIBLE] ALL THE DOLLARS YOU EXPECT TO GENERATE FOR TIER ONE. BUT OUR PROJECTIONS WILL BE A LOT LOWER THAN AS WE EXPECTED.
SO I DIDN'T FEEL COMFORTABLE WITH TRYING TO EXPEND ANY ADDITIONAL DOLLARS RIGHT NOW, CONSIDERING OUR PROJECTIONS ARE GOING TO BE A LOT LOWER ON TIER TWO IN THIS FIRST YEAR.
I THOUGHT IT WOULD BE BETTER TO JUST DO WHAT WE KNEW WAS REQUIRED AND THEN SET ASIDE THE REST OF THE MONEY AND WE'LL GET THAT MAYBE IN FUTURE YEARS WHEN WE HAVE THE OPPORTUNITY.
AND I'LL EXPLAIN THAT A LITTLE BIT MORE.
BUT THAT'S JUST KIND OF OUR INITIAL THOUGHT.
OK. THANK YOU. AND THIS SALES TAX INCREASE STARTS JULY 1ST, RIGHT? THAT'S CORRECT. COVID'S GOING TO BE OVER BY THEN.
WE'RE GOOD. THE OTHER THING I WOULD POINT YOU TO ON TIER TWO IS THE TRACKING OF THE FUNDS . EVEN THOUGH THIS IS A GENERAL FUND FUND.
THESE ARE GENERAL FUND, FUNDS.
WE WILL BE TRACKING SEPARATELY.
SO, YOU KNOW, OUR SALES TAX FOR GENERAL FUND SALES TAX IS USUALLY OR HAS BEEN ROUGHLY FOUR AND A HALF MILLION DOLLARS.
WE WILL HAVE A SEPARATE LINE THAT TALKS ABOUT MEASURE LB SO YOU WILL SEE WHAT DOLLARS ARE GOING TO BE STRICTLY FOR [INAUDIBLE].
SO IT DOESN'T GET ALL CO-MINGLED INTO OUR OVERALL GENERAL FUND.
BUT I THINK IT'S GOING TO BE IMPORTANT TO IDENTIFY THOSE DOLLARS SO YOU CAN SEE AND TRACK HOW THEY'RE COMING IN AND HOW MUCH WE'RE GETTING.
DOES THAT MAKE SENSE. MAKES SENSE. AND WE DO GET GET FROM THE STATE OUR REMITTANCE.
THIS IS ACTUALLY VIEWED EVEN BY THE STATE, AS DIFFERENT THAN JUST OUR GENERAL SALES TAX, WHICH IS THE ONE PERCENT.
[INAUDIBLE] SO WE WON'T HAVE TO DO A CALCULATION OR IT'LL ACTUALLY SHOW THE SPECIAL TAX IN AND OF ITSELF. AND HOW MUCH IS BEING GENERATED AS A RESULT.
IT'LL BE A FUNCTION OF THE OVERALL SALES TAX.
SO WE WILL BE ABLE TO SHOW THE COMMITTEE THAT AS WE PROGRESS THROUGH THE YEAR.
THE ONLY THING THAT I WILL PUT AN ASTERISK ON THAT IN ITS FIRST YEAR IS I MEAN, I'M NOT
[00:15:01]
SURE HOW THIS IS GOING TO BE REPORTED.BUT AS YOU KNOW, THE STATE HAS GIVEN BUSINESSES A YEAR TO PAY THEIR SALES TAX.
SO WE WON'T REALLY SEE ANY OF THIS MONEY.
SO PROBABLY NEXT YEAR, EVEN THOUGH IT WILL ALL BE OWED TO US, WE WILL NOT BE GENERATING THAT AS FAR AS TRUE DOLLARS.
STOP THERE AND ASK IF THERE ARE ANY QUESTIONS ON THE SPENDING GUIDELINES OR ANYTHING THAT I CAN CLARIFY THAT I HAVE GONE THROUGH OR IF ANYTHING LIKE THIS.
QUICK QUESTION. SO THE COMMITTEE.
I'M SORRY. THE CITY COUNCIL IS GOING TO WANT UPDATES HOW FREQUENTLY? SO [INAUDIBLE] AND WE MAY NEED A COUPLE MORE MEETINGS IN THE EARLY STAGES AND IT'LL BE KIND OF UP TO THE COMMITTEE.
BUT AT A MINIMUM, THE COUNCIL WANTS YOU TO MEET THREE TIMES.
THEY WANT YOU TO MEET AS PART OF THE BUDGET PROCESS, WHICH WE'LL BE DOING NOW.
AS PART OF OUR MIDYEAR, WHICH TYPICALLY HAPPENS IN FEBRUARY.
AND THEN AS PART OF WHEN OUR AUDIT IS DONE ON OUR BOOKS ARE CLOSED SO, AT A MINIMUM, THREE TIMES YOU WILL BE MEETING TO LOOK AT THE DATA.
I WILL TELL YOU, IN THIS CURRENT BUDGET YEAR OR THIS BUDGET YEAR COMING UP, I AM GOING TO BE MEETING A LITTLE BIT MORE REGULARLY WITH COUNCIL JUST BECAUSE OUR PREPARATION IS BASED ON UNKNOWN ASSUMPTIONS.
RIGHT. WE ANTICIPATED WHAT THE EFFECT OF COVID IS GOING TO BE.
SO WE'RE GOING TO GO BACK ON A QUARTERLY BASIS WITH CITY COUNCIL TO SHOW THAT THE REVENUES ARE THIS YEAR, WHICH, AS YOU PUT IT, WE MAY COME BACK TO YOU ALL AS PART OF THAT AS WELL. IN THAT REPORTING TIME, WE CAN SAY, YOU KNOW, WE'VE ALSO SHARED THIS WITH THE OVERSIGHT.[INAUDIBLE].
SO A MINIMUM OF 3 TIMES. ALL RIGHT.
WITH THAT, MR. CHAIR, I WILL WELCOME A MOTION AND A SECOND THE SPENDING GUIDELINES AS THEY EXIST. I PRESENT A MOTION TO APPROVE.
I SECOND. CAN I GET ANY OPPOSITION? CAN I GET AN AYE? AYE.
I AM GOING TO DO A SCREEN SHARE ON THIS NEXT PRESENTATION, BUT I WILL TALK IT THROUGH
[b. Presentation of the preliminary 2020-21 budget overview and the projected 2020- 21 Measure LV sales tax revenues]
JUST FOR THE BENEFIT OF THE GROUP.AND I HAVE SCREWED THIS UP BEFORE SO IF I DO IT AGAIN, I APOLOGIZE BEFORE I GO OVER.
WHAT I'M GOING TO SHARE WITH THE GROUP IS BACK ON MAY 18.
I DID A PRELIMINARY BUDGET WITH THE COUNCIL.
I DO THIS EVERY YEAR SO THEY CAN KIND OF SEE WHERE WE'RE AT WITH OUR UPCOMING YEAR BUDGET, WHERE WE'RE ENDING THIS CURRENT YEAR.
AND THEN THEY GIVE ME THE BLESSING FOR TO MAKE ADJUSTMENTS BEFORE I BRING BACK A FINAL BUDGET. THAT BUDGET WILL GO ON TO THEM ON JUNE 15.
THAT'S TYPICALLY WHAT WE TRY TO, THE PROCESS WE TRY TO FOLLOW EACH YEAR.
SO WHAT I WANTED TO DO IS GET THIS GROUP AT LEAST THE OPPORTUNITY TO SEE WHAT IT IS THAT I'VE SHARED WITH THE COUNCIL UNDERSTAND HOW YOU FIT INTO THE PROCESS OF THE BUDGET.
AND THEN ASK ANY QUESTIONS YOU MIGHT HAVE.
AND WHERE IN THIS YOU'LL SEE WHERE WE SEE PROJECTIONS AS IT RELATES TO THE MEASURE AND THE EFFECTS THAT COVID HAS HAD ON IT.
THAT SOUND GOOD? ANY QUESTIONS BEFORE I JUMP INTO THAT, PLEASE STOP ME AS WE GO THROUGH THIS AND ASK ANY QUESTIONS THAT YOU MIGHT HAVE.
BUT WITH THAT, I WILL PUT THIS UP ON THE SCREEN.
CAN YOU SEE MY DOCUMENT? YES, YES. YES.
SO, THIS WAS JUST THE PRESENTATION.
WE TALK ABOUT ALL OF THERE, LET'S MOVE ON TO THE SECOND PAGE.
SO WHAT YOU'RE SEEING HERE IS THE TIMELINE.
AND I THINK IT'S IMPORTANT FOR THE BENEFIT OF THIS GROUP.
AND IF THIS IS KIND OF REDUNDANT TO SOME OF YOU.
[00:20:03]
I APOLOGIZE FOR OUR BUDGET PROCESS REALLY STARTS BACK IN FEBRUARY.AND THEN THESE ARE ALL THE SETUP THAT WE TAKE AND THE TIMELINE THAT THERE ARE EITHER INPUTS FROM DEPARTMENT HEADS, FINANCE CITY MANAGER'S OFFICE IN THE PREPARATION AND PUTTING TOGETHER THE DOCUMENT THAT IS BROUGHT FORWARD FOR FINAL APPROVAL OF THE COUNCIL.
DOWN HERE. THIS IS A PRELIMINARY STUDY SESSION THAT WAS HELD IN MID-MAY.
AND WHAT I EXPECT TO DO IN FUTURE IS HAVE A BULLET THAT INSERTS THE OVERSIGHT COMMITTEE AND THEIR REVIEW AS IT RELATES.
WE INCLUDED IT IN OUR DOCUMENT WHEN WE WERE DOING OUR TIMELINES.
I JUST WE WEREN'T I DIDN'T KNOW WHEN WE WERE GONNA MEET.
SO I DIDN'T WANT TO INCLUDE IT WHEN I WAS PRESENTING THIS TO COUNCIL.
SO YOU ARE YOU WILL BE INSERTED SOMEWHERE, SOMEWHERE PRIOR TO THIS, PREFERABLY RIGHT AFTER THE PRELIMINARY BUDGET IS REVIEWED BY THE COUNCIL ON A GOING FORWARD BASIS.
I WANT YOU TO UNDERSTAND. MY THINKING ON THAT IS BEFORE I COME INTO THIS GROUP.
I WANT TO GO TO THE COUNCIL AND MAKE SURE THAT THE DIRECTION WE'RE GOING WITH THE BUDGET MAKES SENSE TO THEM AND THAT THEY'RE GENERALLY SUPPORTIVE AND THAT WILL BE CONDITIONED.
I'M GOING TO THE OVERSIGHT COMMITTEE WITH THE USE OF DOLLARS THAT WE EXPECT RELATIVE TO MEASURE LV. AND I PLAN TO DO THAT ON AN ANNUAL BASIS AS IT RELATES TO PREPARATION OF BUDGET. SO BEFORE WE CAN BE CONFIDENT, BEFORE THE BUDGET, THEN YOU SEE THESE LAST THREE STEPS RIGHT HERE. AFTER THE PRELIMINARY BUDGET IS APPROVED, WE COME TO THE OVERSIGHT BOARD, WHICH WOULD BE HERE.
WE THEN HAVE THE DETAILED DOCUMENTS THAT STAFF PUTS TOGETHER.
WE PRESENT THE BUDGET TO COUNCIL, WHICH IS DONE BEFORE JUNE OR EARLY JUNE, DEPENDING ON THE YEAR, AND THEN THE FINAL BUDGET IS ADOPTED.
SO THE OVERSIGHT BOARD WILL GET THEIR INPUT AND HOW THEIR RECOMMENDATION OR THE FINDING OF THEIR RECOMMENDATION PASSED ON TO COUNCIL BEFORE THE BUDGET IS FINALLY ADOPTED.
SO I JUST WANTED TO STOP THERE AND LET YOU KNOW THIS IS THE WAY WE'RE LOOKING AT PROCEDURALLY INSERTING THIS AS IT RELATES TO OUR PROCESS.
SO WHEN I PUT TOGETHER WHEN WE PUT TOGETHER OUR BUDGET FOR THE COUNTRY FOR THE COMING YEAR, WE ALSO TAKE A MOMENT BECAUSE IT'S NOT JUST TWO INDEPENDENT FISCAL YEARS.
THERE'S THE TWO FISCAL YEARS THAT ARE COMING TOGETHER.
AND SO IT'S IMPORTANT TO TAKE A FINAL LOOK PROJECTION OF WHERE WE SEE THE CURRENT YEAR WE'RE IN AND HOW WE'RE GOING TO GET IT.
AND THEN TIE THAT IN TO THE APPROPRIATIONS FOR THE NEXT YEAR.
AND IN THIS SLIDE HERE, WHAT WE WERE EXPLAINING TO COUNCIL IS THE EFFECTS THAT COVID HAS HAD ON OUR FOURTH QUARTER REVENUE.
AND THEN SOME OF THE COUNTERACTING EFFECTS OR, I THINK, MEASURES THAT WE TOOK TO MITIGATE SOME OF THOSE. AND AS YOU WOULD IMAGINE, NO SURPRISE, WE TOOK A PRETTY BIG HIT AS IT RELATED TO FOURTH QUARTER PROJECTIONS FOR ALL THESE AREAS.
THE INSURANCE BILLING WAS NOT RELATED TO COVID, BUT IT ALSO HAD AN EFFECT ON OUR FOURTH QUARTER BECAUSE OF THE WAY WE DID OUR DEPLOYMENT OF OUR AMBULANCE TO CONTRACT OUT.
SO THAT HAD AN EFFECT ON REVENUES.
BUT OTHER THAN THAT, ALL THESE OTHERS WERE SEVERELY DROPPED AS A RESULT OF CANCELING CLASSES, LOSS OF BUSINESS, NOT DOING PARKING SIGNS BECAUSE WE DIDN'T HAVE THE UNIVERSITY OR ANY OF THOSE THINGS AND BUSINESS LICENSE FOR BUSINESSES THAT OTHERWISE WOULD OPERATE.
THE THE ONLY ONE THAT WAS SOMEWHAT INCREASED WAS BUILDING PERMIT REVENUE.
WHEN WE DID OUR MID-YEAR PROJECTION, WE HAD LOST A BIG PROJECT THAT WE THOUGHT WAS GOING TO HAPPEN BY THE END OF THE YEAR.
AND IT DIDN'T. SO WE REDUCED FOR THAT.
WELL, WE HAD A LOT OF PROJECTS THAT SURPRISINGLY, EVEN DURING THE THE RESTRICTIONS BUILDING WAS STILL OCCURRING.
SO WE HAD MORE PROJECTS COME FORWARD THAT WE HAD EXPECTED.
SO OUR BUILDING PERMIT REVENUE DID GO UP.
ON THE OTHER SIDE, EXCUSE ME, ON THE OTHER SIDE, WE THESE ARE THE STEPS THAT WE TOOK AND SHARED WITH COUNCIL TO MITIGATE SOME OF THAT.
AND THAT WAS WE SUSPENDED OR POSTPONE MOST SPENDING THAT WASN'T ESSENTIAL.
MOST WAS COVID RELATED OR SOMETHING THAT WAS A CRITICAL ACTIVITY OR A NECESSITY THAT WE FELT HAD TO BE DONE FOR OPERATION.
WE HAVE POSTPONED MOST OF THOSE ACTIVITIES.
WE ALSO WERE ABLE TO TAKE ADVANTAGE OF SAVINGS AS RELATED POSITIONS THAT STILL REMAIN VACANT. JUST SIMPLY DUE TO RECRUITMENT ISSUES ARE HAVEN'T BEEN FULLY COMPLETED YET.
SO WE HAVE NOT SUSPENDED THE HIRING OF ANY OF THE POSITIONS THAT WE'RE AN ACTIVE
[00:25:01]
RECRUITMENT. SO OR NOR HAVE WE FURLOUGHED ANY EMPLOYEES.SO WITH THAT, THIS IS A LOOK AT OUR END OF THE YEAR PROJECTIONS LOOK LIKE.
OUR OVERALL GLOBAL REVENUES OF GENERAL UNDER ROUGHLY 30 MILLION DOLLARS AND OUR EXPANDED THIRTY THREE POINT FIVE. AND OUR EXPENDITURES ABOUT THIRTY THREE POINT EIGHT.
BUT LEAVING WELL, THAT WAS OUR THAT WAS OUR YEAR PROJECTION.
WE WERE GOING TO BE SHORT ABOUT THREE HUNDRED THOUSAND DOLLARS, BUT WE GET TO THE RESERVE STATUS, WE WERE STILL LOOKING AT POSSIBLY A COUPLE OTHER POTENTIAL EXPENDITURES SO.
THAT'S WHY WE HAVE FIVE HUNDRED THOUSAND.
SO WHEN WE STARTED THE YEAR, WE WERE LOOKING OUT AT TWO HUNDRED THOUSAND DOLLAR USE OF RESERVES. WE'RE ENDING THE YEAR WITH ALL THOSE THINGS THAT YOU SAW ON THE PRIOR PAGE.
LOSS OF REVENUE AND MEASURES TO REDUCE EXPENDITURES, NEEDING TO USE FIVE HUNDRED THOUSAND OUT OF THE RESERVES. NONE OF THAT HAS ANYTHING TO DO WITH MEASURE LV.
I'M JUST GIVING YOU CONTEXT FOR KIND OF WHERE THE BUDGET GETS DONE.
SO LOOKING AT THE RESERVES ARE PROJECTED BALANCE AT THE BEGINNING OF THE YEAR WAS GROWTH WAS TEN POINT NINE MILLION.
THE USE OF RESERVES. WE'RE GOING TO STILL BE AT ABOUT TEN POINT FOUR MILLION WITH THE USE OF THAT 500000, AS IS SUGGESTED AT COUNCIL CONFERRAL.
STOP THERE AND SEE IF THERE ARE ANY OTHER QUESTIONS.
SO THEN AS WE MOVED INTO TWENTY, TWENTY, TWENTY ONE, THAT STARTED TO LOOK AT THE REVENUES.
ONE OF THE THINGS WE THOUGHT WAS HELPFUL WAS TO LOOK AT IT IF WE HAD BUILT A PROJECT OR PROJECTIONS OF PRE-COVID WHAT WE THOUGHT THE NEXT YEAR WOULD LOOK LIKE.
SO THE COLUMN ON THE LEFT REPRESENTS IF WE WERE BUILDING THE BUDGET.
NO COVID. BUT JUST LOOKING AT WHAT DID WE EXPECT OUR REVENUE GROWTH TO BE ABSENT JUST UNDER NORMAL GROWTH. AND AS YOU CAN SEE, THE DIFFERENT AND THEN THE REVISED IS WHAT WE ARE EXPECTING NOW BASED ON WHAT WE REASONABLY PREDICT.
HOW SLOW WE'LL RECOVER IN THIS FIRST YEAR AS IT RELATES TO OUR BUSINESS ACTIVITY, BUILDING PERMITS AND SOME OF THE OTHER EVENTS AS WE COME OUT OF COVID.
AS YOU CAN SEE, SALES TAX BURDENS ARE PRETTY SIGNIFICANT.
BUSINESS LICENSE, WE ARE REDUCING BY ROUGHLY A THIRD JUST IN ANTICIPATION OF LOSING A NUMBER OF BUSINESSES STRUGGLING THAT MAY STRUGGLE TO COME BACK.
JUST BECAUSE WE CUT THE SERVICES WILL NOT.
WE DON'T EXPECT ANY THIS SUMMER, BUT WE'LL GET INTO THE REST OF THE YEAR.
THEY'LL BE SLOWER TO COME BACK.
PARKING. AGAIN, WE DO NOT EXPECT THAT ULV WILL BE WILL BE BACK IN SESSION.
AND THAT'S WHERE WE DRIVE A LOT OF OUR PARKING FEES AND FINES IT AS A RESULT OF STUDENTS NOT PARKING WHERE THEY SHOULD.
BUILDING PERMITS, WE ARE EXPECTING THAT TO SLOW.
AND THEN THE LAST LINE HERE IS MEASURE LV.
AS YOU KNOW, WHEN WE DID OUR PROJECTIONS, IT WAS ROUGHLY THREE POINT ONE WHEN WE WERE ADVANCING THAT MEASURE.
WE THE. AND NOW WE'RE LOOKING AT TWO POINT SEVEN.
AND THAT IS A DIRECT CORRELATION TO THE SALES TAX NUMBER ABOVE.
AND JUST SO YOU UNDERSTAND HOW WE DERIVE THESE PROJECTIONS, WE HAVE A SALES TAX CONSULTANT, HDL.
[INAUDIBLE]. AND SO THEY THEY DO PROJECTIONS.
THEY LOOK AT OUR OUR BODY OF BUSINESSES AND CATEGORIES THERE AND THEY LOOK AT TRENDS AND EFFECTS THAT ARE AFFECTING NOW.
AND THEY HELP BUILD OUR BUDGET PROJECTIONS FOR THE COMING YEAR, AS WELL AS TRACK THE DOLLARS THAT WE HAVE COMING IN JUST TO MAKE SURE WE'RE WE'RE GETTING ALL THE DOLLARS THAT WE SHOULD. SURPRISINGLY, THE STATE MAKES MISTAKES.
AND WE DO NOT GET EVERY DOLLAR THAT IS SUPPOSED TO COME TO US.
THEY HAVE LOOKED AT OUR SALES TAX OVERALL.
THEY'VE ALSO GIVEN US A REVISED ESTIMATE ON OUR SPECIAL TAX ON HOW THOSE DOLLARS WILL GO.
SO AS YOU CAN SEE AT THIS POINT, WE ARE LOOKING FOR THAT TO BE ABOUT FIVE HUNDRED THOUSAND DOLLARS LESS THAN WHAT WE EXPECTED WHEN WE ADVANCE THIS MEASURE.
AND THAT'S ONE OF THE MAIN REASONS, GOING BACK TO YOUR POINT, RON, WHY I AM NOT PROPOSING ANY TIER TWO EXPENDITURES BECAUSE I DON'T FEEL COMFORTABLE GIVEN THE SHORTAGE THAT WE ARE
[00:30:05]
FACING. AND IF YOU GO BACK TO THOSE SPENDING GUIDELINES, AND IT JUST MENTIONED IN TIER TWO, THAT THERE'S GOING TO BE A PROJECTED FIVE, SIX OR A THOUSAND DOLLARS AVAILABLE FOR TIER TWO, IT'S GOING TO BE REDUCED DOWN SIGNIFICANTLY BECAUSE AGAIN, NOW THOSE ARE BASED ON PRELIMINARY NUMBERS BEFORE COVID.SO WHEN WE DO COME BACK AND TALK MORE SPECIFICALLY ABOUT NUMBERS.
THAT PROJECTION IS GOING TO BE REDUCED.
ANY QUESTIONS.OH, AND JUST SO YOU KNOW, OUTSIDE OF THESE REVENUES, YOU KNOW, THERE ARE ANY REVENUES THAT MAKE UP THE GENERAL FUND, IF YOU WILL, GETTING TO THAT 33 MILLION DOLLAR NUMBER. THE OTHER BIG DRIVER IN THAT IS PROPERTY TAXES.
OF ALL THE CATEGORIES OF CITY REVENUES, ABSENT THESE WERE THEY WENT DOWN.
PROPERTY TAX IS THE ONLY ONE THAT WE'RE PROJECTING AN INCREASE BECAUSE WE WERE NOT SEEING THE EFFECTS ON PROPERTY VALUES THE WAY THEY WERE HAVING ON THESE OTHER THINGS.
AND WE WERE NOT GETTING INDICATIONS OR HAD SEEN ANY PROJECTIONS THAT PEOPLE WERE GOING TO BE PAYING. SO WE SEE THAT AS STAYING STABLE.
SO WE WE ANTICIPATED THAT GROWING BUT EVERY OTHER REVENUE IS FLAT.
SO WE DID NOT PREDICT ANY INCREASE IN ANY OF THE OTHER REVENUE CATEGORIES THAT WE HAVE JUST REDUCTIONS HERE AT THE EXCEPTION OF PROPERTY TAX.
AND I WILL TELL YOU, AS IT RELATES TO THE REVENUES, I TOOK REALLY.
I DID TAKE HDL'S NUMBERS FOR SOME OF THESE OTHERS, AND I PUSHED THEM DOWN A LITTLE BIT MORE BECAUSE I WANTED TO MAKE SURE THAT DIFFERENT THAN OTHER YEARS WHERE I'M ASKING THE COUNCIL FOR USE OF THE RESERVES TO BALANCE THE BUDGET.
I KNOW THAT THEY'RE NOT GOING TO GET ANY OF THAT MONEY.
I JUST WANTED TO MAKE SURE THAT OUR RESERVE WAS GOING GONNA BE THE MOST THAT I WOULD EVER EXPECT RATHER THAN IT BEING A QUESTION.
AND THEY UNDERSTOOD THAT AS WE GET TO THE NEXT SLIDE AND SEE WHAT THE QUESTIONS ARE.
SO WE'LL WE'LL GO TO THE STRATEGIES EMPLOYED.
BUT THE FIRST THING I'LL DO IS JUST COME DOWN TO THIS THIS RIGHT HERE.
AND ESSENTIALLY WHAT WE ARE REQUESTING THE INITIAL DEFICIT IS WHEN WE GET ALL THE REQUESTS. AND THEN WE'VE GOT TO LOOK THROUGH THEM AND FIGURE OUT HOW ARE WE GOING TO FUND THESE DIFFERENT THINGS. WHAT'S PRIORITY ONE IS BOTTOM LINE IS IT WAS JUST OVER TWO MILLION DOLLARS. THE PROPOSED BUDGET THAT COUNCIL HAS APPROVED ADVANCING FOR THEIR REVIEW HAS A MILLION DOLLAR DEFICIT.
AND THAT IS SO THAT ANTICIPATES USE OF A MILLION DOLLARS OUT THERE, A TEN POINT FOUR MILLION THAT YOU SAW ABOUT.
THAT ANTICIPATES THAT USE COMING INTO THIS NEXT YEAR.
GOING BACK, THE STRATEGIES THAT WERE EMPLOYED IN THAT WAS WE ESSENTIALLY HELD ALL THE OPERATIONAL REQUESTS AT THE CURRENT YEAR'S BUDGET.
I'M KEEPING TRACK OF WHAT THE REQUESTS FOR ADDITIONAL WERE, BUT THERE WERE ROUGHLY SEVEN HUNDRED THOUSAND DOLLARS IN ADS.
AND THAT'S OUR OPERATIONAL BUDGET IS COMPRISED OF TWO COMPONENTS.
THERE'S PERSONNEL, WHICH IS ALL THE BODIES AND EXPENSES ASSOCIATED TO THAT.
AND THEN THERE'S THE THROUGH OPERATION, WHICH ARE ALL THE THINGS OR CONTRACTORS THAT WE EMPLOY TO SUPPORT WITH THE PERSONNEL THAT ARE HIRED.
IS THAT ABOUT RIGHT? PERSONNEL IS WHAT PERCENT OF OUR OVERALL BUDGET? 75 TO 80 PERCENT.
SO THAT THAT OK, THIS IS ALL AROUND THAT OTHER OPERATIONAL SIDE.
IT DOESN'T HAVE ANYTHING TO DO WITH THE PERSONNEL.
SO I TOOK THAT SEVEN HUNDRED THOUSAND DOLLARS AND SAID, I CAN'T SUPPORT ANY OF IT.
I CAN ONLY GIVE YOU THE APPROPRIATIONS THAT I'VE GIVEN YOU LAST YEAR.
ANY NEW THINGS WE'RE GONNA HAVE TO FIGURE OUT IF WE GET ADDITIONAL REVENUE.
WE WILL REINTRODUCE THE THINGS INTO THE BUDGET.
AND SO THAT'S THE STRATEGY THAT WE'RE GOING TO PLAY WITH COUNCIL AS WE LOOK AT THE BUDGET GOING FORWARD. REVENUES APPROVED.
I WILL PUT SOME OF THESE THINGS BACK IN PLAY.
WE ALSO DEFUNDED ANY VACANT NON SAFETY POSITION.
SO IF I HAVE ANY POSITIONS THAT ARE NOT PUBLIC SAFETY RELATED, I'VE DEFUNDED THEM.
THEY'RE STILL AUTHORIZED POSITIONS FOR ME FOR THE SAKE OF OUR BUDGET.
THERE'S JUST NO MONEY FOR THEM AT THIS POINT.
WHAT WE WILL DO IS, AGAIN, IF WE GET THE REVENUES INCREASE MORE THAN WHAT WE'VE PROJECTED. WE WILL LOOK AT REFUNDING SOME OF THOSE POSITIONS AS WE GET INTO THE YEAR.
BUT THAT WILL ONLY HAPPEN IF THE DOLLARS ARE RETURNED.
[00:35:03]
WE REDUCED FUNDING FOR OTHER POSITIONS TO LESS THAN A FULL YEAR WE NOW, AND THAT'S MOSTLY A SAFETY RELATED POSITIONS.IF WE'RE NOT GOING TO FILL EVERY POSITION JULYFIRST.
SO WE LOOKED AT EVERY POSITION THAT WE ARE ADVANCING THROUGH RECRUITMENT, POLICE OFFICER, FIREFIGHTER, COMMUNICATION OFFICERS.
AND WHEN WILL WE REALISTICALLY GOING TO BE ABLE TO FILL THAT POSITION? AND SO WE TOOK AWAY THE DOLLARS FOR LESS THAN A FULL YEAR OF FUNDING TO MAKE UP THAT GAP.
AND THAT THAT SAVED US ROUGHLY SIX.
AS IT RELATES TO THIS GROUP, WE ANTICIPATED THE ADDED MARKET ADJUSTMENTS, WHICH MEANS THE SALARY INCREASES THAT WERE DUE THAT ARE DUE TO COME SOMETIME BETWEEN NOW AND JULY OR IN DECEMBER TO BE FUNDED FROM MEASURE LV DOLLARS COMING.
AND THAT WILL BE THE STUFF THAT WE WILL BRING TO YOU AT THE NEXT MEETING.
SO YOU CAN LOOK AT IT. I'M NOT ASKING YOU TO MAKE A DECISION ON THAT TODAY.
I DON'T THINK THAT WAS THE RIGHT THING TO DO.
I WANTED TO JUST GIVE CONTEXT FOR YOU OF WHERE WE SIT AT THIS POINT.
BUT THIS THESE BUDGET NUMBERS ANTICIPATE THAT THEY'RE NOT INCLUDED IN THE MILLION DOLLARS. JUST SO YOU UNDERSTAND, I PULLED THAT EXPENSE OUT OF THAT BECAUSE WE'RE STILL PUTTING THE NUMBER TOGETHER. THIS IS EVERYTHING BUT THOSE INCREASES.
THIS DOES INCLUDE IN THIS BUDGET, ANY MERIT INCREASES ANYTHING OUTSIDE OF WHAT WAS SALARY ADJUSTMENT INCREASES DUE TO MARKET AND HEALTH INSURANCE INCREASES THAT WE'RE PUSHING OVER TO MEAUSRE LV THAT DIFFERENCE.
AND THE OTHER THINGS HERE ARE NOT AS SIGNIFICANT.
SIMPLY LET EVERYBODY KNOW AT THE EXCEPTION OF COMMUNITY SERVICES WHERE WE REDUCE MOST OF OUR STAFFING THROUGH DECEMBER, WE HAVE NOT ELIMINATED IT OR REDUCED OUR WORKFORCE IN ANY WAY BECAUSE WE WANTED TO TRY AND MAINTAIN THE LEVEL OF SERVICE THAT WE'VE PROVIDED COMMUNITY. IF WE GET INTO WITH ANOTHER YEAR OF THIS AT THIS LAST 18 OR MORE MONTHS OF RECOVERY, WE MAY HAVE TO TAKE A LOOK AT OUR WORKFORCE.
BUT THE COUNCIL FELT COMFORTABLE IN PUTTING THE NUMBERS OR PUTTING A BUDGET TOGETHER WITH THESE ASSUMPTIONS. AND THEN THE LAST SLIDE HERE, TALKING ABOUT THE REVISED APPROACH, WHICH I SHARED WITH YOU, THAT I'M GOING TO BE BACK TO THE COUNCIL MORE FREQUENTLY OVER THIS NEXT YEAR OF JUST GIVING.
AS MANY OF YOU KNOW, WHEN YOU'RE PREPARING A BUDGET, YOU'RE USING YOUR PAST TO ANTICIPATE YOUR FUTURE. I DON'T KNOW THAT I'VE GOT A GOOD INDICATOR OF THAT.
SO I'M GOING TO COME BACK TO THEM A LITTLE BIT MORE FREQUENTLY AS TO HOW OUR REVENUE GROWTH IS LOOKING AS WE GO AHEAD.
OTHER CONSIDERATIONS WAS I SHARED WITH THEM ABOUT THE TIMING OF RECEIPT OF OUR SALES TAX REVENUE FROM THE STATE.
AND THAT'S A LITTLE BIT OF AN UNKNOWN LIKE I SHARED WITH YOU ALL.
FACT THAT I NEED TO COME THROUGH THE OVERSIGHT OR RELATIVE TO THE APPROVAL OF USE OF MEASURE LV MONEY, POSSIBILITY FOR REIMBURSEMENT OR OTHER LOCAL OTHER AID MONEY COMING FROM STATE, FEDERAL AS WELL AS THE COUNCIL WAS INTERESTED IN WORKING OUTSIDE OF THAT BUSINESS GRANT PROGRAM THAT WE HAVE NOW OF SOME OTHER TYPE OF LOCAL STIMULUS THAT WE WOULD HAVE TO USE OTHER GENERAL FUND RESERVES TO SUPPORT.
WE WOULD COME BACK TO THEM. OK, WITH THAT, I WILL STOP AND I WILL ASK YOU IF THERE'S ANYTHING FOR [INAUDIBLE].
THEN I WILL ASK FOR COMMENT FROM THE COMMITTEE.
[6. STAFF/COMMITTEE COMMUNICATION/INFORMATION/FUTURE AGENDA ITEMS Committee members may ask a question for clarification, make a brief announcement, and make a brief report on his/her own activities, request staff to report back at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda.]
OK. DOES DOES THAT MAKE I MEAN, DOES THAT KIND OF MAKE SENSE AS FAR AS, YOU KNOW, WHERE THE BUDGET IS AT AND HOW THIS COMMITTEE INSERTS WITH THAT? I THINK THAT WAS GOOD TO SEE THE WHOLE THE WHOLE PICTURE.AND THEN WE KNOW WHERE OUR SMALL PART IS OR WHATEVER.
BUT I THINK THAT WAS YOU WERE SUCCESSFUL IN PRESENTING THAT TO US, WHERE WE KIND OF GET AN OVERVIEW OF EVERYTHING THAT GOES ON AS MUCH AS WE CAN, THOUGH.
AND, YOU KNOW, THE TIMING OF WHERE YOU WERE INSERTED, I JUST AGAIN, I THINK THAT'S WHERE IT MAKES SENSE. WHAT I WHAT I DIDN'T WANT TO DO IS GET YOU GUYS THROUGH EARLY IN THE PROCESS AND I'VE GOT TOO FAR DOWN THE ROAD AND THE COUNCIL SAYS.
WELL, I DON'T WANT YOU TO NECESSARILY DO THAT.
I'D RATHER HAVE A PRELIMINARY SENSE FROM THEM AND THEN FROM YOU AND THEN GO BACK FOR FINAL APPROVAL. JUST YOU KNOW, THIS IS THIS IS OUR FIRST TIME THROUGH THIS TYPE OF COMMITTEE. I'M FEELING IT OUT WHERE THE MOST APPROPRIATE PLACE TO PUT IT.
SO I CERTAINLY WELCOME TO YOUR INPUT AS WELL.
BUT IT SEEMS LIKE THAT HAPPENS BEST IN OUR PROCESS AND GIVING THAT OPPORTUNITY.
I THINK WHERE YOU HAVE THIS IS THE RIGHT PLACE.
[00:40:01]
I MEAN, THE CITY COUNCIL IS WAS ELECTED TO SET POLICY WORK.WE'RE JUST AN OVERSIGHT COMMITTEE.
SO I THINK THE COUNCIL'S PLACE IS TO SET POLICY WHICH WOULD PRECEDE ANY OVERSIGHT EFFORT WE HAVE. SO I'M COMFORTABLE WHERE YOU HAVE THIS.
I WOULD ADD THAT I THINK IT'S PERFECT, TOO.
THERE MIGHT BE ANOTHER SPOT WHERE WE WOULD COME IN THE SECOND TIME, DO YOU THINK OR NOT? YOU MADE AFTER THEY APPROVED IT OR, YOU KNOW, YOU NEVER KNOW, I MEAN, IF THERE'S NO DISCUSSION WHERE WE'RE NOT ANTICIPATING THAT, THEY'RE HOPING FOR THAT.
BUT, YOU KNOW, IT SEEMS LIKE THERE MIGHT BE A SECOND TIME WHERE WE.
I MEAN, YOU KNOW, MAYBE A LINE OR TWO DOWN BEFORE THE FINAL.
BEFORE THE FINAL. BUT MAYBE THAT'S NOT OUR ROLE.
WELL, I DON'T KNOW. WELL, I GUESS I'M SORRY, IT'S THE ONLY TIME I SEE WHAT THAT WOULD POSSIBLY HAPPEN. LET'S SAY WE PRESENT TO THE BOARD OF THE COMMITTEE AFTER THE PRELIMINARY BUDGET. AND YOU SAY, YEAH, I NEED SOME MORE INFORMATION BEFORE I'M WILLING TO GO FORWARD WITH WHETHER IT BE TIER ONE APPROVAL OR TIER TWO APPROVAL IF WE GET TO THAT POINT.
SO WE MAY HAVE TO COME BACK TO YOU BEFORE WE GET TO THE COUNCIL.
HOPEFULLY WE GIVE YOU EVERYTHING YOU NEED BECAUSE, YOU KNOW, I I PRESSED UP AGAINST THEIR TIMELINE, BUT THAT'S GONNA BE INCUMBENT UPON US TO MAKE SURE WE'RE GIVING YOU THE INFORMATION THAT YOU NEED.
AND WHAT I WOULD ASK IS, YOU KNOW, AS WE GET INTO THIS THIS FIRST YEAR, IT'S GOING TO BE LIKE I SAID, IT'S GOING TO BE MORE EVIDENT BECAUSE WE'RE ALL IN TIER ONE.
BUT WHEN WE SEND YOU THE PACKET AHEAD OF TIME, WE'RE GIVING YOU THE INFORMATION THAT WE THINK IS NECESSARY FOR YOU TO FEEL COMFORTABLE AND HAVING A DISCUSSION, MAKING A DECISION, WHATEVER THAT MIGHT BE, IF IN THAT YOU LOOK AT IT, SAY, YEAH, THERE'S [INAUDIBLE]. I WOULD ENCOURAGE YOU TO CONTACT US AHEAD OF TIME.
SO MAYBE WE CAN GET THAT ADDITIONAL INFORMATION THAT YOU MAY NEED TO BE ABLE TO UNDERSTAND WHY THIS ADDED MONEY IS BEING ASKED TO BE USED.
SO THAT THAT'S KIND OF THE WAY I SEE THAT WORKING.
BUT IF IT DOESN'T, THEN, YES, WE MAY HAVE TO COME BACK TO YOU BECAUSE WE DIDN'T GET THE APPROVAL BEFORE WE GO TO THE COUNCIL FINAL.
I HAVE. I JUST HAVE A QUICK QUESTION.
DO YOUR PROJECTIONS TAKE INTO CONSIDERATION THE POSSIBILITY OF A RESURGENCE OF THIS VIRUS IN THE FALL AND WINTER AND MAYBE NOT EVERYTHING'S GOING TO BE CLOSED DOWN AGAIN, BUT THERE MAY BE SOME SOME PULLBACK ON ACTIVITY IN SALES TAX.
I CAN TELL YOU IT HAS A VERY SLOW GROWTH OF IT.
AND I DON'T KNOW THAT IT DIDN'T ANTICIPATE A WAVE OF DROP.
I ALSO DON'T THINK IT ANTICIPATED REINTRODUCTION OF BUSINESS THIS QUICKLY.
BUT REALLY TO IF WE COME BACK AND WE'RE BACK WHERE WE ARE RIGHT NOW.
THESE NUMBERS WILL BE REVISED AS A RESULT.
THESE ARE OUR BEST PROJECTIONS BASED ON OUR UNDERSTANDING OF WHAT WE THINK THIS NEXT TWELVE MONTHS.
WHICH IS WHY WE MENTIONED ONE OF THE SLIDES THAT WE'RE GOING BE GOING BACK TO COUNCIL PROBABLY EVERY THREE MONTHS, BECAUSE WHAT WE'RE GOING TO KNOW THREE MONTHS FROM NOW IS DIFFERENT THAN WHAT WE KNOW TODAY ABOUT IF THINGS ARE GETTING BETTER OR POSSIBLY WORSE.
SO WE'RE ONLY PROJECTING WHAT WE THINK WE KNOW RIGHT NOW.
HOPEFULLY IN THE NEXT THREE MONTHS, SIX MONTHS, WE'LL KNOW FOR.
IN A WORSE SITUATION, WHICH MEANS THAT WE HAVE TO COME BACK TO THE COMMITTEE WITH REVISED PROJECTIONS AND HAVE THOSE DISCUSSIONS.
AND THAT'S THE OTHER REASON WHY I DID NOT WANT TO TOUCH THE TIER TWO EXPENDITURES IN THIS FIRST YEAR WHEN I THOUGHT IT WAS TOO MUCH BUT PUT AT YOU TO FIGURE OUT HOW THIS WORKS AND SPEND THOSE DOLLARS. BUT THEN ALSO, GIVEN THE FACT THAT WE ARE IN THIS UNKNOWN, I DIDN'T FEEL COMFORTABLE SAYING, HEY, LET'S SPEND IT, WE'RE GONE.
WELL, WE DON'T KNOW WHEN. SO I'D RATHER ERROR ON THE SIDE OF CAUTION RIGHT NOW.
WE CAN ALWAYS GROW INTO SOME OF THOSE THINGS YEAR TWO, YEAR THREE.
SO THAT'S THE OTHER REASON FOR THAT STRATEGY.
SO SO THAT'S WHY WE'RE WE'RE LOOKING AT COMING BACK TO THE COMMITTEE WITHIN THE NEXT TWO WEEKS WITH ANOTHER MEETING TO HAVE TO GET IN MORE SPECIFICS OF PROJECTIONS, TIER ONE PROJECTIONS, AND THEN HAVE THAT DISCUSSION WITH THE COMMITTEE ON WHAT THOSE NUMBERS LOOK LIKE. AND THEN BACK WILL THAT WILL THEN LEAD INTO THE CITY COUNCIL BUDGET DISCUSSION.
AND THEN WE WE CAN SAY THAT WE'VE HAD THESE DISCUSSIONS WITH THE OVERSIGHT BOARD.
AND THIS IS WHAT WE'RE NOW THIS IS WHAT WE'RE PRESENTING TO THE STATE COUNCIL THAT TALKS ABOUT THESE PROJECTIONS HAVE ALSO BEEN DISCUSSED AND HOPEFULLY APPROVED BY THE
[00:45:07]
[INAUDIBLE]. TO PIGGYBACK ON THAT.SO WHAT WE'RE GOING TO DO IS WE'RE FINISHING THE ESTIMATES FOR WE KNOW WHAT THE PERCENTAGES OF INCREASES ARE OR THE POSITIONS THAT WE HAVE.
AND SO BECAUSE WE HAVE THAT MARKET DATA BACK TO THE BEGINNING OF TWENTY ONE AND WE HAVE.
SO THE SIGNIFICANT PART OF IT IS THE DIFFERENCE.
THE THE LAST ADJUSTMENT WAS THE EQUIVALENT OF BACK TO TWENTY EIGHTEEN.
SO THE GAP IS BETWEEN 2018 AND 2020 WHERE ALL THOSE POSITIONS, WHATEVER MARKET, WHATEVER THEIR MARKET DID. SO NOT EVERY POSITION IS THE ACTUAL POLICE OFFICER WOULD BE DIFFERENT, THAT A FIREFIGHTER WOULD BE DIFFERENT THAN A MAINTENANCE WORKER AND SO ON.
SO WE'RE LOOKING AT EVERY CLASSIFICATION AND WE'RE SEEING WHAT THAT MARKET HAS DONE BETWEEN THAT BETWEEN TWENTY, EIGHTEEN TO TWENTY.
AND THEN WE'RE LOOKING AT WHAT THOSE INCREASES ARE, THOSE AMOUNTS WILL LOOK LIKE ON AN ANNUALIZED BASIS. SO WE'LL BE BRINGING THOSE REPORTS TO YOU.
WE'LL SHOW YOU BEFORE THE POSITION CHANGES ARE.
HERE'S WHAT THIS RESULTS IN AND EACH CATEGORY.
AND THEN HERE'S HOW MUCH WE'RE THEN GOING TO ASK TO BE APPROPRIATED OUT OF THIS MEASURE LV REVENUE.
AND THEN WE'LL GIVE YOU A LITTLE BIT MORE.
WE CAN PROBABLY BRING BACK WHAT HDL HAS RELATIVE TO THESE NUMBERS, YOU CAN KIND OF SEE THE PROJECTIONS IF THEY GO BY DIFFERENT THAN WHAT WE HAVE HERE, WE TAKE TO TWO POINT SEVEN. IS THAT TARGET NUMBER TO WORK OUTCOME.
SO LET ME STOP THERE AND THEN I'LL TALK ABOUT WHAT WE'LL DO AT THE OTHER STATES.
THIS NEXT MEETING. THAT'S WHAT WE WANT THIS NEXT MEETING TO BE IS STRICTLY AROUND THAT TIER ONE AND THOSE PROJECTIONS.
AND LET YOU CHEW ON IT, ASK QUESTIONS, UNDERSTAND IT ALL.
IF YOU WANT HOW THE PROCESS WORKS.
BUT THESE ANNUAL ADJUSTMENTS THAT ARE NOT, BECAUSE I REALLY THINK IT'S IMPORTANT THAT YOU AS A GROUP KNOW WE UNDERSTAND THAT TO KEEP US TO THE MARKET.
BUT WHAT DOES THAT LOOK LIKE? AND SO YOU SHOULD HAVE SOME LEVEL OF UNDERSTANDING WHAT THAT IS, WHAT OUR MARKET SURVEY IS. WHAT IS. WHAT ARE THE CITIES WE LOOKED AT.
NOT THAT WE'LL CHANGE IT. BUT JUST HAVE THAT INFORMATION.
SO THAT'S WHAT I WOULD TAKE THIS NEXT MEETING TO SPEND A LITTLE BIT OF TIME OR YOU ORIENTING YOU TO THOSE PARTS.
THAT SEEM LIKE A GOOD APPROACH? VERY GOOD. YES.
SO WITH THAT, I GUESS I'LL SURVEY THE GROUP TO SEE WHAT WOULD BE AN OPPORTUNITY TO MEET IN SAY TWO WEEKS. I THINK WE'RE ALREADY SCHEDULED FOR THE 15TH.
ACTUALLY, THE 15TH IS WHEN THE COUNCIL MEETS.
I WAS JUST SAYING WE NEED TO MEET BEFORE THE 15TH.
[INAUDIBLE] WE WERE GONNA MEET BEFORE YOU HAVE YOUR MEETING ON THE 15TH, BUT, I'LL WAIT AND HEAR WHAT YOU HAVE TO SAY. NO, I KNOW IT'S I KNOW IT'S WORDED THAT IT COULD THINK WE'RE MEETING RIGHT PRIOR TO THE COUNCIL MEETING, BUT IT'S BASICALLY SOMETIME PRIOR.
YEAH. THANK YOU. THEN WE COULD DO IT SOMETIME THE WEEK OF JUNE 8TH.
AND I WILL DEFER TO THE PREFERENCE OF THE GROUP TRYING TO STAY AWAY FROM WEDNESDAY IF POSSIBLE. I'D LIKE TO EARLIER IN THE WEEK IN CASE WE NEED SOMETHING. YEAH. SO EITHER THE HOW IS THE 8TH OR THE 9TH FOR THE GROUP.
AT THIS TIME? YEAH, YEAH, WE CAN DO THE SAME TIME.
IT ALL WORKS, THOSE TWO DAYS WORK.
ARE YOU ASKING FIRST THING IN THE MORNING? NOT THE 8TH. OK.
I APPRECIATE THAT. WE WILL GET TO THAT CALENDAR AND SCHEDULE AND WILL DO THIS SAME TYPE OF MEETING. SO JUST GIVE YOU A LITTLE BIT OF WHERE IT'S BE THEN THE NEXT STEP OF THIS.
YOU KNOW, THIS IS HOW WE ARE GOING TO DO THE BUDGET AND HOW YOU'RE GOING TO HOW WE'RE FITTING INTO THAT PROCESS.
AND THEN I TALKED ABOUT THIS YEAR, MAYBE DIFFERENT THAT WE MAY JUST COME BACK AND SHARE
[00:50:03]
THE REVENUES WITH YOU OR JUST REPORT THAT OUT TO YOU ON A QUARTERLY BASIS.I WOULD CERTAINLY BE APPROPRIATE, BUT ABSOLUTELY WHAT WE WHEN WE DO OUR [INAUDIBLE] WE HAVE A BETTER IDEA OF WHAT OUR PROJECTIONS LOOKING LIKE [INAUDIBLE], HOW EXPENDITURES ARE, WHAT THE REVENUES WERE LOOKING LIKE.
WE WILL COME BACK IN A MORE SIMPLIFIED THAN BUILDING THE BUDGET, BUT SHARING OF INFORMATION. AND SO YOU'LL SEE A REPORT ON WHAT THOSE WE HAVE PROJECTED, WHAT THE INCREASES WERE GOING TO COST.
MAYBE NOT ALL THE POSITIONS WILL BE FILLED TO THE EXTENT THAT WE THOUGHT SO.
WE MAY NOT SPEND AS MUCH AS WE PROJECTED, BUT WE WILL GIVE YOU KIND OF A PEEK AT WHAT THE END OF THE YEAR COULD LOOK LIKE. AND SO AT THAT POINT, WE WILL JUST LOOK FOR YOUR CONFERENCE, ANSWER QUESTIONS.
GO FROM THERE. BRING THAT ACTION FORWARD TO COUNCIL WHEN THEY GET THEIR MID-YEAR BUDGET REPORT. JUST SAY WE READ THIS HAS BEEN REVIEWED AND, YOU KNOW, SEEMS TO MAKE SENSE WITH WHAT WE HAVE A BREAK WHEN WE GET TO, CAN WE GET THE ACTUAL AUDIT? THAT WILL BE A BETTER DEFINITION.
[INAUDIBLE] SO NOT UNTIL OCTOBER OF THE FOLLOWING YEAR, WHEN WE CLOSE THE BOOKS, WHEN WE GO TO THE AUDITORS AND THEY SAY, YES, HERE ARE YOUR EXPENDITURES, [INAUDIBLE].
THIS IS HOW MUCH YOU ACTUALLY SPENT.
SO THIS IS ACTUALLY HOW MUCH IS LEFT OVER THAT YOU THOUGHT YOU WERE GOING TO SPEND THAT'S GOING TO GO INTO THIS RESOURCE LIKE MEASURE LV.
SO WE WILL GIVE YOU A REPORT AND WE WILL TRACK.
LIKE I SAID AT THE BEGINNING, NOT JUST THE NEW REVENUE COMING YET, BUT ANY UNSPENT REVENUE THAT WE HAD OTHERWISE PROJECTED TO SPEND DURING THE YEAR THAT WE DIDN'T.
SO WE WE ARE TRACKING WHAT THAT ADDITIONAL AMOUNT OF MEAUSRE LV IS.
I DON'T KNOW IF THERE ARE ANY OTHER QUESTIONS FROM THE GROUP OR ANYTHING TO INCLUDE ON THIS NEXT AGENDA THAT YOU WOULD LIKE TO SEE I'VE ALREADY OUTLINED.
I WOULD JUST SAY THANK YOU FOR THE INITIAL MEETING.
I THOUGHT IT WAS WELL ORGANIZED.
AND YOU PROVIDED THE INFORMATION WE NEED TO GET STARTED.
AND I WOULD ASK IF ANY OF YOU IN THE MEANTIME OR IN BETWEEN THE MEETINGS, IF THERE IS SOMETHING ELSE AND JUST WANT TO ALL IS DIRECTLY HAPPY TO HAVE A CONVERSATION WITH YOU AS WELL. I APPRECIATE ALL YOUR TIME.
AND I LOOK FORWARD TO WORKING WITH YOU OVER CERTAINLY THE NEXT YEAR, IF NOT LONGER.
IF WE DO HAVE QUESTIONS. NOT THAT WE WILL BEFORE THIS NEXT MEETING, BUT WE CALL MARK OR CHRISTY. OR DO WE GO TO YOU OR HOW DO YOU WANT US TO? IF YOU WANT TO START OUT WITH MARK IF THEY'RE BUDGET RELATED OR A GENERIC QUESTION.
YOU CAN ME. YOU CAN GO TO EITHER OF THEM AS WELL.
OK. AND I DON'T KNOW IF THEIR WAS YOUR EMAIL.
YOU KNOW, WAS THERE. SO PLEASE FEEL FREE TO REACH OUT.
STAY SAFE. THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.