 Thank you, Larry. I'm going to call to order this special meeting of the capital City Council. And can we start with a roll call, please? In attendance. Here. Here. And I'm going to ask Council Member Bertrand if you'd lead us in the Pledge of Allegiance. Okay. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation, under God, indivisible, in liberty, for all. I always want to say amen. Drives me crazy. Thank you. That was the fast version. Well done. So let's now move on to item number two, addition, solutions to the agenda. We have no changes for the agenda this evening. Any additional materials? Chloe, I should maybe take a pause to let you make an announcement. 61, this meeting is not physically open to the public. Council and staff are meeting via Zoom, and there are several ways for the public to watch and participate. Information on how to join the meeting using Zoom or a landline or mobile phone, along with how to submit public comment during the meeting tonight, is available on our website, cityofcapitola.org, and on the published meeting agenda. The public can also live stream the meeting on our city website or on our YouTube channel. As always, the meeting is also being cablecast live on Charter Communications Cable TV Channel 8 and is being recorded to be rebroadcast on the following Wednesday at 8am and on Saturday following the first rebroadcast at 1pm on Charter Channel 71 and Comcast Channel 25. Our technician this evening is Olivia. Thank you, Olivia, and thank you Mayor Story. Thank you, Chloe, and also thank you, Olivia, for being our technician this evening. So that brings us to oral communication. This is opportunities for members of the public to address the council on items on the consent agenda, which there are none this evening. Mayor Story, you muted yourself. Thank you. I'll repeat myself. And I was saying this is opportunity for oral communications with members of the public would like to address the council on items that are not on tonight's agenda. And I'll ask Larry, do we have any attendees? I don't see any. At this point, we do not have any attendees for the meeting and we have not received an email. Okay. Just in the event also, those who may be listening in on the phone number strike that, well, yeah, you can dial star nine if you want to communicate with the council or if you want to send an email. We can do so at public comment at the I got capital of that. And it appears to be no attendees. So we'll see if anything should come through. Next, we'll move on to staff and city council comments. Are there any staff comment? I don't believe we have any comment for you this evening. Council members. Any comments? Seeing none, I'll move on to the business that and this evening, which is the presentation of the proposed fiscal year. 2020 2223 budget for the city of capital and the capital of successor agency. The recommended action is acting as the city council and the successor agency to receive the proposed budget, provide staff direction and continue budget deliberations for the next budgetary schedule. On May 19, 2022. And I'll ask for a staff report. But before you begin to step report, I just thought maybe in order to kind of break this up a bit. I'm going to ask maybe after the revenue section. Just seeing if there's any public comment on that topic. And then moving on to expenses. And then the special funds portion of the presentation. I just wanted to give the public if there should be any, an opportunity to, you know, comment for too much material presented. So with that, I'll turn it over to Sam. Sure. Thank you. Take a little moment here to knowledge to work of Jim Malberg and higher finance department and putting together the draft budget. And the entire department has always a lot of work going through and figuring out where we are with our numbers for this current year and where we are going to go next year. So really want to commend everybody on a great effort. I know Jim was able to do it. Without working late this last couple of weeks, which was a great good accomplishment. Just as a reminder for everybody, this is the first of the series of four scheduled budget hearings. Very often we don't end up utilizing all of them, but we certainly can. We will also, if needed, we can squirrel in some time if we have time and future agendas during a regular meeting time to talk about budget issues, should we need that. The purpose for this first hearing is really to give an overview of the budget. And then it's an opportunity for council members to ask questions, some of which we may be able to answer right here at the hearing, some of which we would come back at the next budget hearing with a response. If you'd like us to dive into a particular topic, this is a good opportunity to bring that up. Then we could do that at the next future budget hearing as well. And then lastly, if you have any preliminary feedback or guidance, this is also a great opportunity to do so, but you don't have to do it at the first budget meeting. We have other budget hearings down the road to get feedback. So with that, I think I'm prepared to turn it over to Jim. Jim, want to kick us off? Okay. Thank you, Jamie. Good evening, Mayor and council members. I will take a moment to share my screen. Does that look okay, Larry? It looks fantastic. Thank you. Okay, so as Jamie mentioned, this is the first of four, so I'll go ahead and get started on kind of the whole budget overview and then I'll get into some revenues and we'll pause for the public and then expenditures and then pause again for questions at that point. But feel free to stop me at any time because I move through some of these kind of quickly sometimes. So as far as the summary, our economy continues a strong recovery from the pandemic, but we are beginning. It looks like some signs of slowing to that as people return back to their normal kind of activities. We do have estimated about 1.1 million of additional ongoing revenue this year from and when I'm comparing these numbers I'm comparing to our amended budget. With the exception of one spot on TOT where I'll talk about later on. So the 1.1 in addition to the 385,000 of ongoing that we identified at the mid-year last fiscal year takes us up to about 1.4, almost 1.5. Approximately, we have approximately 1.2 million of additional ongoing expenditures. And I'll go through those on some of these later slides, but our net change of unprogrammed ongoing revenues is a reduction of 55,000 down from that 385 in this first proposed draft. We also have three point just under 3.6 million program for the adopted city council goals. And we're doing that utilizing general fund balance that we built up over the last couple of years as well as our fiscal year 2223 measure up funds of 1.1 million going to the war. Our proposed budget you probably noticed is structurally imbalanced by design. So we have 2.6 million of expenditures and excess of revenues, but that was intentional this year. We'll kind of go through that. But even with that, we're still estimating our June 30th 2023. So any fiscal year balance at 1.3 million. And then again, we'll still have the $385,000 that was set aside in their resiliency account during the city council goals. Just a reminder, ongoing first cost and a major threat to city resources. During goal setting, a council allocated an additional 500,000 to the purse contingency reserve that'll take our balance up around 1.5 million. But our unfunded liability as of June 30 2020, which was the last report was 28 million. I expect that to come down a little bit. The members had some really good returns, but they also changed a couple of things. So I'm waiting to see what that number is, but that 28 hopefully will drop $4 or $5 million. We do just remind your heavy reliance on sales and transit occupancy tax. We always point out that these are two volatile revenue sources. However, they seem to, they held up really well during the pandemic, but we still have a heavy reliance on and probably should think about some other diversified revenue sources. Our reserves remain close to the target balances. Just a reminder, contingency is 15% of general fund. We have a little bit over 2 million there. And then our emergency is 10% of general fund, you know, just under 1.5 there. So when I go through these, the city council goals, a lot of those one time expenditures are getting contract services. So if I just kind of in a vacuum looked at what the reserve should be this year, it would be a pretty large increase to what the balances are. But then as those one time expenditures drop off next year, it would come kind of back down. So what we've tried to do is look at our target two years out and kind of spread that allocations from the general fund into the reserves to get to our targets by the end of next fiscal year. 2024. This is just kind of a graph showing where our reserves are. So the bottom is the contingency that kind of lighter purple is the emergency. And then a little bit of the dip where we pulled the $60,000 out for the noble goal for single repairs. We'll build that back up. And then the per contingency, you see the increase there with that deposit 500,000. And then we've added a little bit on the top just so we keep track of the resiliency account going forward. So this is just kind of the summary for the general fund revenues and expenditures by by categories. Again, this the first kind of text in that top circle there is showing that our expenditures are exceeding revenues by about 2.6 million. But we're still ending the year with a budgetary fund balance of 1.3. We also have the resiliency account of 385. So total with kind of what we have for ongoing and what we have in the resiliency account is going to be a little bit over 1.7 is what we're estimating to end fiscal year 2223. This is just kind of a graph the same revenue numbers that room on the other page. I think the takeaway on this is you'll see that we dropped in fiscal year 1920 at the onset of the pandemic and we rebounded pretty quickly. And now we're kind of projecting that we're going to be holding where we are right now for the next couple of years, slight increases, but nothing really moving the garage that much. A couple of the key changes in this year's budget are increases on the revenue side. We're seeing a projecting at 4% increase on property tax, a little over 114,000 that's coming directly from the county assessor's office. A sales tax. We have at the staff level 3% or 459 that's the Bradley Burns. We're pretty close. HDL is a little lower than us this time, but we're still pretty comfortable with this number, but we'll watch it closely. Sales tax, the district taxes. This is just measure. Just under 129,000 about the same percentage increase measure. If we'll see the same increase, but since we have that programed entirely to the work this year, I didn't include on this chart, but it is also our table. It is also increasing by about the same amount. The to team. That's a 5% increase over the amended budget. But we took a look at the numbers and we think we're going to actually ended about 2.1 million this year. So that's just basically taking next year's budget up to the 2.1 that we think we'll see. We are projecting to end out this year. That one, I'll be watching really close to see if as people start returning to normal activities and possibly vacationing further from home. This is being driven by room rates, primarily. So we'll see if room rates start coming down, but we'll keep a pretty close eye on that. Charges for services going up a little over 286,000. The majority of that is recreation returning to kind of unrestricted programming and back to their full operations. There's a few other things in there, but that recreation is the primary driver there. And then there's a few other miscellaneous ins and outs that net out the plus 9,000. A couple of notes on that. So overall general fund revenues are going to increase about 2.6 million. But that includes 1.4 million of the one time grant money coming in this year. Same American rescue plan money. And then a couple of planning grants that are finishing up this fiscal year. Again, TOT kind of had a spoiler there coming in at 2.1 million. That's about 30% over our highest year prior to the pandemic. So that's the one that I just want to see if it holds there, but it's really doing well. Just kind of a reminder, sales tax represents about 55% of general fund revenues. With about two thirds of that coming from our top 25 generators. And we lose any of the top 25. We feel it pretty quick. Property tax again continues 4% growth. That's been pretty consistent for the last three or four years. And I think the county's projecting it to maintain at about that 4% growth rate. And then charges for services returning to pre pandemic levels. Quick charts. So looking at revenues by category. This one is just kind of day lighting or highlighting that about 75% of our revenues come from taxes. And that is broken down. So tax revenues. You'll see about not quite 60% between the Bradley Burns at 43 and the two measure up and the two district taxes. It just under eight that comes in just under 60% of total revenues just from sales tax. And then property tax is at 20% and the to T is starting to catch up to that. A little over 14%. And out of tax revenues. We have our restricted to T that comes in off of that. Off of the to to taxes. So this is doing better. We had originally when I think it was your J. J or K went through. We had thought that the local business groups would be somewhere between 55 and 60. And that the early childhood and youth programs would be in the high 40s, maybe low 50,000. We're with the increase in to T revenue we're seeing some increased revenues there. And I'll talk a little bit more specifically about the early childhood and youth program and a few slides. And I'll pause right there. That's the last of the slides I have on the revenues. If you want to see if anyone has any questions before anyone. Yeah, thank you, Jim. You know, it appears that we there are still no indeed. Larry, you haven't received any emails. I have, I have not received any emails. Okay. Maybe I did. The council members. Any questions concerning the revenues at this time. Yeah, council member breath. Thank you, Mayor story. I think this is in relation to to the revenue. In the budget for proposed budget, we do talk about the mall. And I believe when the conceptual review was brought to us. Three years ago. And we look at what would happen if we broke ground. We were looking at a million dollar loss, annual loss. How are we building that in because there was one slide you showed with the three year projection. And maybe this is that no, it was like a few slides ago, maybe that it looked pretty even. Where are, how are we planning for that and where, where is that? I'm ready for this one. Sure, I'll take a swing at it. So our long range projection right now, we're actually not showing the mall project occurring, not because we don't think it's going to. But for a while, we kept showing it in our long range projection every year and then we just kept pushing it out. So right now it's not showing up in the long range projection, but you're absolutely right. We estimated the impact of mall redevelopment that would take place over a period of two to three years. And estimated the revenue impacts of the city would be in the order of a million dollars. The tentative and, you know, and this would be subject to council approval, but the tentative internal plan has been that that's probably where we would look to utilize the purse trust. Because the purse trust could be used to make specific purse payments in the years that were down, which could offset those revenue impacts. The challenge, of course, this is something Jim and I have spoken about a lot is that, you know, you want to be very sure because it doesn't make sense right to scale the city back for two or three years, conceivably lay people off and then have to rehire. You just have to have a high degree of confidence we would that the project would come to fruition. So that's the tentative internal plan. And it's not without risk, obviously, because, you know, you do see projects that start and don't finish. But would be to utilize the purse trust to help stabilize the revenue stream during mall redevelopment. And how much do we currently have? What page is that on? And I guess I bring this up because I don't remember which meeting it was at that we discussed having it shown on our budget, you know, when we looked at projections. And I just don't want to lose sight of that, especially as we move into how we want to use the, I don't want to say extra money we have. It's the wrong term, but, you know, that this is something that council needs to to make sure we're planning for. I'll leave it to Jim to talk about in our budget when we talk about the first trust, the current balance in the first trust. I think Jim just covered on the previous slide about 1.5 million. Is that correct, Jim? Current balance is about 1 million. Council goal is to make an additional deposit of 500 to take us to the 1.5. It should be in the reserve section on the budget. Yeah. Okay. And it is. And I remember council bringing this up as a priority at our last or not as a part of it. Yeah, or other. Yeah, one of our priorities to shift the money over there, but we didn't talk about that it was going to be just to utilize if the mall broke ground. And I don't know that we've had the conversation and you can remind me, Jamie, if we had, we did or not, whether that was going to be enough. So if we have a million every year and it's going to take several years, it just might not be enough. I just, I'm curious what your thoughts are on that. And I think when we did the analysis, we came to a total impact of around, I think it was just a bit north of a million. If you just seem right, Jim, that was the multi year impact council member Brooks. So I do think that the purse fund right now, if we make this allocation of 500 K should be sufficient to take us through redevelopment of the mall as we anticipated it happening. So that is sort of the internal tentative plan. But like I said, we've never, we haven't taken that to council for adoption as a formal. I will also probably wouldn't recommend adopting a formal plan because, you know, we don't know exactly what the project's going to look like when it's going to happen. But that's been sort of our internal back pocket of what we think we would propose to do if the mall project all of a sudden went into high gear in the near term. We were looking at those kinds of revenue decreases, temporary revenue decreases. And just for clarification, the one one million that you anticipated and lost of revenue that was overall should the project take two to three years. I thought it was an annual loss. That was overall that was cumulative loss. Oh, okay. Yeah, we were phasing in some of the new revenues coming in over time and phasing out so it was a little bit of. Jim, do you want to shed a light on that if you remember. I want to say it was, we were planning on about a two and a half year to three year construction window and that we were like you said just a little bit over a million dollars over that entire timeframe. Okay, and, and one last question Jim, you mentioned that if we did lose though one of our five that they in total bring in a certain amount which was, I don't see it here 38% of some things. And what would that what is 38% and if we would lose that where would where would we go for fun. So, presumably if we lost one we would hopefully get another big sales tax generator in its place. So the example that I would have is orchard supply left and then outdoor supply hardware came in after is kind of made up for that loss. I want to say orchard supply was in our top 10 and outdoor supply hardware is probably getting close to that if they're not already in there. And as if we lost one of the big size, which might be likely in the next couple of years, what would that loss look like, and where would we, it would take time for a new place to come in. Where would we find that revenue or find that money to backfill that loss. It would depend on which of the five the five are pretty different levels from number one to number five is the only different level so losing number one would hurt much more than losing number five. And we have reserves contingency reserves that would probably fill the gap while we made up while we look or waited for another vendor to come in. But I mean, they're they're bigger, bigger operations. So you're right, it would take some time to get somebody in. But I think reserves general fund balance and then we would probably if it was long term have to start looking at some modifications to our expenditures. The way of reference in 2010 we lost several businesses in the top five is not top top 10 of top five got shocks on the dealership. And the way we approached that was we had a limited hit. We actually utilize fund balance. I don't think we actually ended up using reserves, but we restructured sort of city services to cut back just because the timeline of when those businesses would be reoccupied. The time wasn't known. And so we rescaled the city's operation around that pretty pretty dramatically and pretty quickly. So I think that if we did see impacts, particularly those top couple ones that really are very significant revenue sources for the city, we would be talking very quickly about what kind of adjustments we would make the city expenditures. Yeah, I make this point because this is a two year budget proposal. And we're not seeing much change in terms of the big five generators. And because we have a surplus of funds at this point, would it make this make it what, you know, should we be having these conversations of what to save money just in case one of these clothes and I don't know staff. So the question is, I don't know if staff has had this conversation, whether counselors look at this. And I know I should have brought this up in priorities, but now understanding how much it's 38% of the total of our sales tax, that's pretty significant. It is one of the things that keeps me up at night for sure. I would love to be a city that rely mostly on property tax, which is far more stable. I've probably all heard me say that before in the past. So, you know, I do, I would note that we do have $500,000 at this point going into the first trust, which in some senses is a form of contingency and you put the 385 into the resiliency fund. So the city council has directed a significant investment in sort of stability and reserves already. So, you know, I don't want everyone to feel bad about what we've already sort of programmed into the budget is that they're definitely, it's not, we're not spending every dime we've got. We're definitely squirreling a fair amount of money away. But I really appreciate the concern because like I said, it does keep me up at night too. Thank you. And I'll call on you in just a minute, but following up on that question about the sources of sales tax revenues. I was looking at the chart on page 24 of the breakout on page 24 of the draft budget on where it identifies the sources by area. I didn't see listed on sales taxes from internet sales. Do we track that separately? Are we able to do that? So we can get a, maybe a sense of how that's trending. We do track it separately. We haven't reported it in the past. We get our funding allocated from internet sales to the county pool, which is more complicated than we need to go into right now, which includes it's about two thirds internet sales. I think it was one third DMV used motor vehicles, if I remember right, somewhere around there. We can bring that back and show you the trend because it is actually a very interesting trend to look at. And we can even talk more about it at the next budget hearing if you'd like to get some more details. Well, yeah, I would certainly be interested in seeing that. And I think, you know, going to Councilmember Brooks is, you know, point about what are some of the alternatives. I think that that is going to be one for us to kind of watch and track and to see how that's trending. So, so thank you. Yeah, I would be interested in seeing that. And now I'll call on Councilmember Bertrand. He commuted, John. Yeah. So, Mike, you made a comment about some trends are going down a little bit. And I was just wondering if Jim, rather, if you could comment about that and is that reflected in other communities around here? I'm just wondering if it's just us or is there, you know, like you said, coming out of the pandemic. So that's the first question then after you answer that and give us a better understanding. I have a second question. Sure. So it was interesting. We met with Jamie and I met with HDL or sales tax consultants. I think that was earlier this week. Yeah, Monday. And they give us kind of an overview of the state and then the region. And it was interesting to see that our growth in certain areas was far less than in other regions. That's what we were looking at the last quarter of last calendar year. So October or October through December of last year. And other regions are growing much faster. And HDL's take on it was we didn't come down as far as other areas. So we're, we don't have as much to build back up. So other areas are still seeing double digit growth and some other revenues. Well, we're aren't quite seeing that here. And we believe it's because we just didn't fall off that bar when the shelter kind of lifted. They were still in place that they lifted. We had a lot of people come to this area rather than flying and going other places. So it didn't hit us as hard. So our recovery looks lower, I guess. So are we thinking about restaurants in our hotels so people can enjoy the recreation around here? Is that it? We didn't drop as much in those areas. So I'm trying to get an idea was Jerry's did not drop as much. Yeah. Councilmember Trent. So if you remember back in later, it was sort of late fall, late summer 2020 into the winter. So much of the rest of the state was still pretty shut down. And it did not feel that way around Capitola, if you'll recall. There was a lot of folks. There are actually our sales tax consultants mentioned that that's where that's where her daughter was going every weekend. And so when we do the year over year comparison, we always do a year over year comparison. So when we look at this last winter, October, November, December of 2021, we were growing as a region. I think it was like 4% or something, Jim. Yeah. And like a lot of other places around the state were growing at 12. And the reasoning was because it was just so many people were coming to the beach back in 20. And our revenues were surprisingly strong then. Remember, we kept getting surprised last year with how we were doing. So that's a little bit of what Jim's referring to. And then in addition, we haven't really seen direct evidence of the slowdown so far in our revenue stream. When Jim is talking about a slowdown in the economy, it's more based on input from HDL and looking at monitoring sort of nationwide and statewide trends where you may have seen was actually reported from economic contraction last quarter, national level. So, you know, everything is still in flux. But at this point, we haven't seen an actual signal of a slowdown in economic growth in the city. But it seems as a nationwide statewide, there may be some signs of that. Thank you, city manager. So we have an existing hotel above the post office box and excuse me, post office facility. What's that due to come online? I don't know the status, you know, hasn't come to city council. I don't even know if it's in city planning yet, but I heard that they they're moving on the conceptual. And so I'm trying to get an idea how much boost would that be? I don't think it's much, but I'm just trying to get an idea. So if our community development director is on, she could talk about the pending schedule for consideration of the application for the Hill Street Hotel. Katie, if you're on. Yes, can you hear me? So for the Hill Street Hotel, we're hoping to take that forward to planning commission this summer. So either at the July or August meeting of the summer and then from there, they'll develop their building plans. And they've just finished up their sequel analysis. And so we're putting together the whole package and getting it ready for planning commission in July or August. Planning, excuse me. I was wondering how many more rooms, you know, I forgot what the projected room increase was. But I think it was over 50%. But I'm just trying to get an idea. So that could give us an estimate. I'm going to open the plan. I wanted to say it's close to like in the high 40s. Okay. Not 50. Okay. High 40s. That's a rough. I mean, we're not counting rooms. Yeah. And I think ballpark just to get here, sort of give you kind of a frame of reference. I think in the round 40 to 50 rooms, if it performs like other sort of similar hotels, we'd probably be looking at something around 300, three or four. But if it does get final approval from planning, you know, that doesn't mean that it's up and operational. And I presume it probably around a six month period to finalize their building permits and building plans. And then, you know, an 18 month construction cycle. So if it was approved this summer, we're probably looking at two summers out. So the summer 25 would be the best case scenario when something like that would come online. Something I always worry about. I think we all worry about is working with the neighbors. Has that process started? They have they've worked with them. The owner has reached out to the neighbors and has been working with the neighbors right next to the hotel. Great. Good. They've had a few meetings. Okay. Thanks very much. That's the end of my questions. Thank you. Thank you, Council Member Brickran. Saying no other questions or nothing, Council Members. Jim, I just, I did have one question on the detail revenue summary detail on page 14 of the draft budget. And this is the under the internal services fund and transfer from the equipment replacement. This year, it's proposed that it be 105,000. And in the current year, it's 411. And I was just wondering if, well, one, that seems to be a significant drop. I was just wondering where is the, or should that is the new electric street sweeper included in that? I would, I guess that's expecting to be bigger numbers because of that purchase. Sure. So on the equipment fund, we've moved the 300,000, I believe is what Council directed at mid-year into the equipment fund already. I believe, yeah, I think this is, I'm not stealing anyone else's vendor. We've been approved for a grant of up to 250, I believe, which brings our total funding to around 650,000. And that money is in other than the 250, that's on a reimbursement basis. So the funding for the electric sweeper, the city's portion is already in the equipment fund. So the 105 that you're seeing on page 14 is the internal service funds to this year. It will be the police department and recreation for life. Our tower is what we're funding right there. Okay. All right. So we don't have a lot of things scheduled in the next budget year. No, we have, we last year we had two police vehicles. We've taken delivery of one. I haven't seen the second one. I think it will be here soon. We had a three quarter ton truck with a dump bed that I still, if I remember what last time I talked to Steve is still six to nine months out. So we do have that purchase from the year that we're in, but it's already funded. And then again, the street sweepers in there. So yeah, there's a lot of activity if we can get the supply chain to cooperate. And thank you for that. And also I had a question since you brought up our emergency contingency reserves. And just, maybe this is a request for the next presentation. It was a little difficult for me to track what it, you know, what is 10% and what is 15%. I know it's supposed to be against expenditures, but it looks like it's expenditures, less internal service funds and kind of an internal transfers. So I was, I wanted to ask maybe next time when we could see some, maybe some, the actual allocations of what we're taking the bottom line expenditures against those required reserves. Because it seems like we're a little bit behind and I think this may be a closer on on those particular reserves. I have, I have the calculations on pages 108109 of the budget, but I can definitely put the next next hearing go into a little more detail and provide more detail on what the plan is and how we come up with that calculation. Yeah, I see it on page 108109, but it, you know, it says general fund expenditures like excluding transfers and well TFF and LFF. But it doesn't identify what those, what those numbers are. Okay. Yeah, definitely. At the next hearing I'll break that out. So it's much more clear. For sure. Thanks. Thank you. And Councilman with return, did you have your hand up again? No. Okay. Well, I'll turn it back to you, Jim, and you can carry on with your presentation. Thank you. So it's been bit sure. Sorry. Hopefully nobody's getting carsick here. So this is just kind of the overall summary. You saw that on the general fund summary. There's kind of just a review of that slide and put it into a graph. You see a little bit of the increase there for the proposed budget, which a lot of that's driven by the city council goals this year and 3.5 million. Some of the key changes on the personnel. So these are just the main categories within our expenditures now. I have some slides on, especially the personnel a little bit on contract services later on personnel. We're looking at a little over eight hundred eight hundred nine thousand dollar increase. Our notes on that is that it does include 1.8. Point eight is about 1700 hours of a position of new positions. It is returning requesting to return to currently frozen positions. But it also maintains a total between a frozen position and a handful of positions that we have that are partially filled. So there's a lot of moving pieces with personnel right now to get to that 808. That 808 also includes 200,000 per Zway on cost in there. Contract services is going up 500,000. That's primarily driven by city council goals. As I mentioned, some of the things that we're doing here at city hall, the community center, bike and pedestrian safety. Those are contract services. One time expenses. So that's the primary driver there. Training and membership as well as supplies. That's kind of normal annual movement up and down depending on what's going on at the time. Internal service funds, almost a $210,000 increase with over half of that coming just from our insurance premiums going to invasion. They held them down a little bit through the pandemic and utilize the credit luster. So we kind of anticipated an increase. I don't know if we anticipated this much, but we did anticipate an increase there. So to drill down a little bit into some of those items on personnel. The 808, as I mentioned, there's two, a total of two FTEs when you put them all together between one. Three quarter time frozen position and then some partial partially billed positions. In the city manager's office. Community building and PD. I think that's all of them. The increase to the CalPERS UAL again turned 12,000. It was 280 last year, 212 this year. It's based on the last actuarial. It looks like those annual increases are going to start coming down and hopefully leveling off here in the near future. We hear that a lot from PERS and it's been dragging on for years. But I think we're getting to that point where we're starting to see a decrease in the annual addition to that makes sense. As you recall, we did all bargaining groups, negotiated new MLUs last year. All of them agreed to 3% COLA's. And what was actually a little bit less than that, but there was some other things that overall it's 3% COLA as well as step increases. That's about a little over 264,000. The steps I was mentioning to the back last night, the positions that were frozen were primarily primarily from a lot of folks that have been here a while and retired. So now that we're back filling those where they were at the top steps that we weren't seeing as they get an increase in the steps. So a lot of that increases tight to the or about a percent of that increases type of that steps. Additional staffing a little over 332,000. So I mentioned the police officer that was frozen at the onset of the pandemic right now. Council has authorized us to overfill that position. So we can go ahead and fill it in anticipation of a retirement that will be occurring. I believe in early July under the way we sit right now, that position would then become vacant and frozen again. So we're requesting to be able to fill that on a permanent basis going forward on a regular basis. The receptionist was frozen at the onset of the pandemic. That one we kind of looked at the positions that are under filled and the one that's vacant. And if we could take one that kind of helped everybody, this seems to be the one where we could kind of take the whole interacting with customers as they come into the lobby, rather than the doorbells, the phones, the mail and all that stuff right now. It's just kind of a hodge podge whoever's available does it. It would be helpful I think to all if we had the receptionist back. The development services technician. This is a new position in public works. I have some, we'll focus on staffing a little bit later if you have questions on what that is exactly. I think Steve can help out with there. On the 80% or 1700 hours a year of a recreation coordinator, that's a new position in recreation for junior guards and lifeguards. We talked about changing the way we operate our lifeguard program and that's kind of what this is resulting in. That one actually net out to not very much increase by the time we're all done. And Beja I previously mentioned the beach shuttle. We're bringing back the beach shuttle. Last year we only had a budget of 16,000 because it wasn't running much at all if it did. So we're taking that up. That's actually a pretty significant increase. Prior to the pandemic, we were at about $35,000 to $40,000 a year. That's going up significantly and that's reflected there. Our 9-11 JPA, so the call center and 11 call center and we're going to call center for safety up at Della Vega. The operational cost has some pretty big increases this year and this is capitalist portion. Public Works Engineering, something that we have cut at the beginning of the pandemic trying to bring that back. Gas and electric utilities, that's just inflation driving those right there. That's a pretty significant increase across all city facilities of 25,000. The general admin contracts that we have cut at the beginning of the pandemic. Some of that applies to ADA compliance that increases 50 grand. The lifeguard contract, I mentioned that we are changing the way we operate our lifeguard program. So we'll actually be getting rid of the lifeguard contract that we have with Santa Cruz City. Nikki and Jamie can give you specifics on timing on that. The last year we had a budget of 95, that was going to increase to 110 this year and I think another big jump in the next year. So that's why we're kind of changing our model. And then just everything else kind of miscellaneous catch all stuff up and down and inflation comes to about 82,000. So by departments, breaking out expenditures by department, you can see police and public works is about 70%. Public safety, public infrastructure makes sense. And then those that kind of support that and building in recreation and community development, everything makes up the other 30%. When you break it out by categories, public agencies are service industry. So about two thirds of our cost is made up of personnel costs, 21 and a half percent of contract services. And then the remaining, I think that's about 12% or so goes to the other categories of supplies, training grants and internal service charges. You know, I can pause right here for the expenditures because I'm going to get into the staffing and then a couple of multi-year projections if you like. Yeah, thanks, Jim. It looks like there's no attendees. Do you notice any emails? Mayor's story, we don't have any. Okay. Then I'll call on Councilmember Brooks. Thank you, Mayor's story. I just had a question about, I'm actually not sure what it's called. It's our council travel. And I believe we're supposed to bring that back to what it was and I'm not seeing that. No, that is absolutely correct. That was one we missed in this first round. So when I get towards the end, I have kind of my punch list of budget amendments that we need to consider going forward and returning city council travel back up to the 10,000. At the top of that list. Okay. And then for our implicit bias training, as an expenditure, so this is kind of tricky because I would ideally like, I don't know that we actually as a full council have talked about the, how often we were going to have staff participate in implicit bias training. And after some of my own research, it seems that the average is every two years. How are you including that in this particular budget and forecast. So for training and memberships, I don't call out those on the big one on kind of the overview for implicit bias training. I believe we get some money reimbursed from Ambeja. I think dollar wise, it's not a very big ticket item in the grand scheme of overall training and membership citywide. So I don't have it called out. Just the dollars are low. It gets absorbed as we go through. We have a few trainings that we do that are every other year like that that we just kind of program and then as we need them, elections work kind of the same way. You'll see election costs go up. Then they disappear. Then they go back up. So I think this would work kind of the same way. We will build it in on whatever the schedule is that the council decides on. Just make sure. Okay. So I personally would like to be called out in some way so that it doesn't get lost in terms of recurrence and necessity. And then in terms of staffing, I'm looking at council compensation. And I believe it was right when I came on to three years ago when council reviewed our compensation. And I'm wondering if this would be an appropriate time to request the potential increase to get closer to what we just because I believe it was several hundred away from an increase. And I'm wondering if this is appropriate time to request staff bring back that information and how it would affect our expenditure forecast. So I think and Jamie can correct me if I'm wrong here. I think that request should go through the fact and the fact looks at it makes a recommendation back to city council. It keeps a little bit of separation between the council members and and being the only decision maker in your own pay if you will. Go up annually. It just has to go before council each time. I don't believe that you can build in like with our MOUs we have 3% cost of living adjustments. I don't believe we can do that for city council. I think it has to be kind of requested and all that but you are correct. I believe at the time the it could have been raised up to it was between nine hundred and fifty and a thousand dollars a month and I think it. We only moved it from five hundred to six hundred so there was definitely some bandwidth in there. The other rule or law or whatever you want to call it is if we put that to the fact now. And then they make a recommendation and council approves it for increasing it doesn't go into effect until after the next election. So we would if that's the desire of the council to put that in front of the fact I would want to do that relatively quickly. Otherwise you're going to do something and if we don't we're not done by November then it sits for another two years. I'm going to nod and I don't know what kind of council consensus you need but I'll. I speak council member Bertrand giving a thumbs up mayor story. I think the request is maybe going back to that I recall there was a kind of imperative study. And it seems like that's just an information item that could be brought back through the fact. And you can mention that you know this you know request and have the fact look at that study and make a recommendation back to the council. Those are all my questions. Thank you Jim. Oh just what I didn't answer and I don't mean this to be insulting in any ways but changing the city council compensation. A couple of hundred dollars a month in the grand scheme of things is not going to really have that big of an impact on our overall budget. I appreciate that Jim. Thank you. I had. Council member Brown steps away so I'll call on council member Bertrand. Thank you very much. So Jim you mentioned Ambeja. I'm very concerned about the increase in that charge for us and are we looking at that in terms of where the costs are being driven or what the costs are being driven that raises. There's a general rise but you know are we seeing more people tripping over sidewalks or suits or of any other sort or you know so I kind of like you know when you come back to us to give us a rough idea where where the drivers are. Basically I'd like to see it you know looked at a little closer so we have some control over it and then if improvements are needed we can focus. I can. You can come back on that. I don't need an answer right now. Okay. Yeah yeah because it could be a more complete one when Jim works it over. Yeah I think it is there was a thing that you mentioned ABA compliance. I think it's been about two years now. We did a basic city survey. Is this connected with that and we're still chomping away at the various things maybe Steve can answer that. Just trying to get a better idea of that. Council member Bertrand yes that item not necessarily has to do this. We budget that annually to do ADA improvements at either a facility or a street. Sometimes we put it into our project. The last ADA funding was actually went into part of the library project so we'll be looking for ADA improvements to do in the next fiscal year. And you know obviously see parts of that as we spend it but it is an annual allocation we make just to do ADA improvements throughout the city. Okay so my concern is you know I hear all the time about lawyers up and down California bringing suits because of ADA lack of compliance. So the fact that we're working on this does that protect us. I mean there's many things that that study showed but the fact that they're working on things as they've been you know highlighted I guess does that protect us. I just want to understand that. I'm not a lawyer but yeah so we have a transition plan and that's what you're referring to. That identifies all the shortcomings in the city and it does provide protection as long as we are continually working on that. The level of protection I wouldn't have wouldn't want a hazard to get so. Okay but in court it's been recognized that we can't I'm just that maybe Sam could I don't know if Sam's here. I'm trying to understand that because we have so many I saw the report I think it was two boxes. It was huge so I'm trying to understand what kind of liability we have we know it's an older city relatively speaking. So we have tons of things out there so I'm just trying to get a better idea of you know what kind of situation we're in in terms of potential problems. You know we have one city against the city that was before we had our transition plan in place or it wasn't updated we've now updated it. It does provide a level of protection as long as we kind of prove that we're continuing. There's no way we can go out and build it all at the millions and millions of dollars to fix everything city at a given time. So the courts recognize that but again I can't tell you what level of protection. Okay so the courts have recognized it. I suppose it somewhat depends on how egregious the issue is. So if we ignored an egregious issue that clearly needed some attention right away and we put it at the end of the list then maybe that you know since we know it's there. Would it maybe open itself for a suit. Is it something of that sort and does our plan recognize you know the difficulties not necessarily the difficulties but the issues in terms of the hazard to ADA community. It doesn't rank them on severity. No it does not. Right now we use reports for example the clear street project. We went through and looked at all the issues that were brought up along clear street and the intersection and we are fixing those as part of the project. We're using it in that way right now. More than we are scheduling repairs and it does not it does not do any right. Okay so we'll go short. Okay no thanks. So my question is Sam when she comes on regular session is, you know I kind of like some guidance to the city council on that because of the extensive and like I said there may be things that are quite egregious and potentially very dangerous to members of the ADA community. And I mean community like those and whatever and maybe you know it begs to take those right away rather than you know other things that are less dangerous. It's just a concern that I kind of like an answer to. Thank you. Council member to be clear. Are you asking for an agenda item on the people council agenda on that question or. Well, if it rises to the level of a agenda I am fine. I just posted in terms of a question of Sam it if Sam feels that this really needs some attention as an agenda item. Then it should be but you know usually she has a sense of you know what other cities have done and what the law is around the state of California. I just want to know. Yeah she could give you that information or all of us that information all of us right. So why don't we just you know yeah it'll be conveyed to Sam and maybe she could correct something on the question about you know our efforts may impact that level of liability. But on the question of the particular project isn't that that that comes to us in the CIT portion of the budget. I don't understand that. That was the question I wasn't. Okay, sorry. So the thing that comes to me is the ramp on the other side of the the Soquel River right and you know someone fell off of that and you know we knew we were learning compliance at the time. I think it was a wheelchair that fell off and then we had to redo it because the angle wasn't correct. It was quite expensive and you know the person I actually met the person and you know she was rather severely hurt. So I understand you know the whole issue from her perspective but from our perspective that we know ahead of time you know I'm just trying to get a better idea. I just don't want to see the city hit by things now that we have a pretty good inventory of what's out there that needs to be corrected. I think we've got some direction on that question. Let's see. Yeah, Councilmember Brown you didn't I thought I saw your hand up but. I had for a second I had a question about the next slide that had some of the staffing on it I thought I saw that the treasure was still included but I see now on that line item that they stop including the treasure. As a personnel cost when we decided that we no longer needed a treasure so I put my hand down but thank you for noticing that. Yeah and Jim I had one request about. And this is on page 33. And this is on behalf of the art and cultural commission. And notice that we have for expenditures of $58,004 and I know some of that is for staff support. But our is the balance of those expenditures and to particular identified projects and the reason I asked that is because. You know at the last meeting they asked for a modest $1500 to be used to a commemorative the Gonya Festival event. Over the next Labor Day weekend. And I just wanted to see whether all that current money and for the art and books commission was already committed. And and if and if not I mean I think that we could utilize that for you know the $1500 for them for that particular event. But if it is committed then yeah I would need to you know try to maybe see if I could get an additional $1500 of food somehow. On the top of my head I do not know exactly what's committed already. And I'm not sure I can I go ahead. Yeah I'm not aware I haven't seen a list of particular arts projects and so I just attached to them. You can see the breakout of the art and cultural commission budget with the $58,000 of page 75. And then I think Larry is here and you can talk a little bit more deeply about what goes into some of those different line items. The story and council members the the event that you're talking about was not included in the budget. The line items that the things that were included were for the twilight concert. Plain air the movies and if I could remember something else but those those are the main things but decide this event was not included in those numbers. I would like to ask maybe that if they could maybe find a $1500 for that. Remember to the building event it's kind of a joint event among the arts commission. Our museum and the beach festival. So with that I'll turn it back over to you Jim with the staff and unfortunately. Thank you mayor. So this this is just kind of a chart that shows the staffing out there's the elected treasure I hadn't even noticed that was still on there. So what this is showing is kind of the history of what our positions were how we dropped during the pandemic. The two right columns are for this year and I have a proposed authorized which is keeping staffing how it was at the pre pandemic and then adding the additional staffing that I mentioned on the previous slides is how this isn't a proposed budget. A proposed authorized and then in the budget it's funding the ones that I was talking about so it's maintaining the two vacancies those numbers are slightly off. I have our development services tech in building is split a little bit and I just caught when I was looking at this right before the meeting I realized I have an account for him so it's. We have like two and a quarter positions that are either vacant or partially filled and we're proposing to keep it that way. For multi budget year projection so the top part of this with the blue outline is showing what our projections are. With our revenue projections on the key revenue so property tax sales tax to the business license and cannabis and parking property tax I think I've mentioned that. We're holding it about 4% a year for the foreseeable future sales tax we have it at 3% this year 2% and then declining and that's kind of based on what we heard from HDL. TOT again that 5% increase this year is from the amended budget and that's just basically getting us to match what we think our actuals were. I don't have any growth in 24% again probably being this dead horse but that one's making me nervous. But hopefully I think Council Member Bertrand mentioned the hotel coming online so hopefully that does happen in 2025 and we start seeing an uptick there. Business license we're seeing that rebound again back to pre pandemic level so this is kind of how we are traditional what we've seen increase wise. Building permits came up quite a bit during the pandemic so right now we're holding that flat we're seeing really high building permit revenue. Looking at it over a two year period so we think that's going to kind of hold flat right now. The cannabis business tax we're holding flat we have a budget of 360 I think they're going to be really close to that. My side note is that we I believe we are currently conducting an audit on the cannabis business tax they're required to go through an audit annually. So if we anything comes out of that audit that changes the numbers around then we'll amend this going forward. As far as revenues and expenditures and net impact on the budget so for this proposed budget right now as I mentioned we're showing expenditures and excess revenues for 2.6 million. I've got the next four years in the projection balanced out but that's only by an increasing increasing contribution of measure F revenues. And then you'll see in fiscal year 28 measure F ends December 31st of 2027 so in fiscal year 28 we only have half a year of measure F and that's why we see that go structurally out of balance. So we have a little bit of time to address that but don't want to lose sight of that we're using measure F. And what this is kind of showing me is we've talked about this ongoing unspent unprogrammed revenue. But the fact that we're dipping into measure F next year it looks like our expenditures what we know are outpacing our revenue projections so we'll have to keep a close eye on that. Because using measure F to balance using an expiring sales tax made just a tax measure to balance our budget is probably not a good long term solution. So this is just a recap so the new revenues one time revenues the 1.4 million of the grant and then the other 1.1 million or so there of ongoing which includes the 1.1 from this year as well as the 385 from prior year. So this is just putting all of those things on the new expenditures new ongoing expenditures as well as the one time city council goals into one page and the point of those two slides was to get to this slide. So our net change we had started the year with basically $385,000 ongoing revenue that we hadn't programmed all of the changes that we have and at this stage of the proposed budget decrease that by 55,000. So we're projecting at the end of this year 23 based on 23 expenditures that we would have 333,000 of ongoing revenue that hasn't been programmed in this year. But when I talked about this last time at the back and looking at it this morning I think our known contract expenses and known personnel expenses going up in the next couple of years along and personnel including our UAE really looks up most of that 330 future years. I have this slide just to kind of summarize this was the city council goals and all of that I don't necessarily need to go in by item by item by line by for this one. I have it up here just to kind of remember remind everybody of what the 3.5 million is programmed towards. And then when we get later on and we start doing if we need to make any tweaks or or adjustments to this we can come back and reference this list. Yes. I'm I'm Mayor stories. I may address something on here. That's okay. So for council, I just want to let all of you know that I've done a bit of research on the library pot lot. I brought it to you before about wanting to utilize the funding to update it to be what we call it universally designed. I'm after talking to some folks who do this. They actually suggested that there's more room more opportunity at the play structure at Jade Street Park. Currently the top lot already has the fungy stuff and things that are just kind of low hanging fruit to make it accessible. And I think I'm what I'd like to see is that this particular fund instead of going to the library pot lot to be moved to Jade Street Park for for such repairs. So that's what I had Mayor for me. Yeah, go ahead. Yeah, I thank you very much for you that for bringing that up because about once a week or twice a week I go to both lots and you know the one at Jade Street is heavily used relatively speaking. And I think, you know, it would be well received there for more kids. So thanks for making that observation and I totally support that. Thank you, Jim. My question is, can you remind me with the total of funding what how close we are to extending what we were allotted? Was it 4 million? Was it 353 million 500? What was that total? What we're left with right now is projecting about a $1.3 million ending fund balance. So we have about 1.3 million general fund dollars that have not been programmed. And we have the resiliency fund as well. And how will we be seeing what plan. So I have, when I get towards the end, I have some slides on key discussion points. So it includes staffing includes early childhood and then also the fund balance discussion. Great. I just kind of wanted to tee this one up because there are some resources that Council could decide to allocate or move things around on this particular list. So I just kind of put that up there, but we can definitely come back to this list. Thank you. Oh, and there it is key discussion point staffing. So just to kind of review this and I'll pause after this slide and kind of get a feel from what the council, if we want to do each one of these slides individually or come back to them, but we're requesting to return the frozen police officer and that's about $180,000 a year in cost. Again, just a reminder, we're currently authorized to fill the police officer position that's sort of frozen, but we expect that to become vacant again in early July. So we'd like to fill that on a regular basis and not have it become frozen again July 1st or following the retirement. The receptionist position, I kind of mentioned that position does support all the admin departments here in City Hall, kind of, if we have one kind of our biggest thing for our buck type of support there. The development services technician in public works, as well as the approximate 1700 hours of recreation coordinator for lifeguard. That total cost is about 153,000. But again, just last year's lifeguard contract was 95,000 is going up to 110. So that offset some majority of that. There's also some restructuring that Nikki did with her seasonal staffing that she's able to do by having this junior guard coordinator. So it reduces some of the other hours. And actually, I believe it nets out on the lifeguard side that we actually saved money by going to this model. I want to say it's 14 or 15,000, but I think Nikki can speak to that. We're proposing that the two total positions, again, it's one that's vacant and then those other four or five that are partially filled remain the way they are right now. We kind of hold status quo there. We seem to be getting by okay. That savings is about 149,000. And then, again, at mid-year, we do it anyways, but just kind of throw it up there that we can reevaluate staffing at mid-year. So if you would like, Mary, I can pause here and we can discuss the staffing before moving on to the early childhood and youth program plan. Let me just check with Larry and see if there's any emails that have come through. Larry, do you see any email? Mayor Story, I do not have any emails on this. Okay. I want to go ahead and send in. All right. Yes, thank you, Mayor. I was just curious, what is the development service technician in public works? What does that person do? Are they in the field or I'm just trying to get a better idea. I haven't heard of this yet. Certainly. I'm going to defer to our Public Works Director, Steve, and have him ten to give you the background on that. Evening once again, Mayor and Council. So the proposal here is we currently have an environmental projects coordinator in public works and working with Katie in the Community Development Department. We think it's important that we really appoint that position to be a more of environmental sustainability coordinator and that they take on such things as the climate action plan, addressing sea level policy and what we need to do that for sea level rise. We take over the solid waste and recycling from the systems of city manager and I continue doing the stormwater program. So we're kind of reconfiguring that position. There will be probably about 50-50 between community development issues and public works issues and then to fill in the plan checking and encouragement permit issuing and other technical issues that we have in public works that are currently done by that position. We would backfill the acquisition with the new development services acquisition. Okay, got it. So we're getting more of a focus now on environmental and related, let's say, issues. Yeah, I think we generally feel that we need to have new staff to address those issues as we move forward. So there's a lot of issues on it. It's hard to keep up with it. And by dedicating a position there, we think that would benefit the city the most. Okay, thank you very much. All righty. So the next key discussion point is the early childhood youth and program fund. This year we're estimating that the ECYP will get about $61,000 in TOT revenue. In addition, we're estimating that we're going to be starting the year with about a $68,000 fund balance. So that's $129,000 of ECYP funding that is available for those types of programs. Right now, the draft budget, I just placed the ongoing revenue into the community grant funding under the ECYP grants, just as a placeholder so that we don't lose sight of it. I have not done anything with the $68,000. So we're looking for some feedback on is the $61,000 the correct use of that revenue or would the council like to see something different? Do we want to do stuff with the $68,000? We don't necessarily have to decide that tonight, but we can start developing some plans for that. A couple of ideas we've kicked around is youth program scholarships, whether it's after school, junior guards or camp. We could consider a policy. And I just put a 50-50 split as an example. On the other restricted TOT for the local business groups, we split it 50-50 between the chamber and the BIA. So that was as deep a thought as I put into that split percentage. So that was just kind of to get the conversation started. And any other ideas that we don't have then? Maybe to start that conversation, I wanted to ask them, is there a particular reason why we were trying to maintain a fund balance of $68,442? No, it was a combination of things. The biggest one being we're getting much more TOT revenue than we anticipated when we adopted the budget, both last year, fiscal year 2021 as well as 2021-22. So it's kind of built up. And the other thing is we were getting some of the, I believe some of the community development block grant money went for, or if it wasn't this money, it might have been out of the outside of school time was going to one of the grant funding sources that we had was covering some of this. And we could only use one funding source or the other. So that's kind of a perfect storm of things happening to get to that balance. But the goal is to not really carry a balance from year to year is to more get this money out into the community. Okay. Thank you, Mayor Story. I have a question about the scholarships that were provided to students in the LST program. I remember, Nikki, you, we had some challenges with giving out those scholarships because of the restricted dollars. They were restricted to students who were on, they were, they were specific. The county gave us money so that we could provide scholarships. Does that sound familiar, Nikki? Okay. So looking ahead, how have you thought or planned on how those scholarships would look in the coming year or where you would get that funding? Or where are you going to come back to us and ask for that money again? Great. Good evening, Mayor, Council Members. So to address Council Member Burke's question there. So, yeah, there was, for the LST program when we did that funding, there was restrictions. We're no longer in those contracts anymore, so we don't have those restrictions any longer. And moving forward, well, I guess this year, I'll pause and say this year, we have received scholarships from a couple of different organizations that have been our traditional pre-pandemic partners for like our Junior Guard program, our camp program. They're small funds, but they do provide scholarship for those particular programs, restricted program funds. And then for the after-school program, the school district had contributed about $16,000 in order to provide scholarships for that program. And then that's kind of the whole pool of scholarship funds. And moving forward, it would be beneficial to continue to have scholarship resources for our youth programming, but be able to expand that to include all of our youth programming. So right now, if you sign up for a class in recreation, there is no scholarship funding for that particular avenue. We would have to go to the independent contractors and ask them if they're willing to discount for that particular child. So having scholarship funds that would be available for any youth programming within recreation would be desirable. Okay. Thank you, Nikki. I guess to Jim, just to your point of consider the policy, the 50-50 split would be 50 to Parks and Rec, and then the 50 would maintain in the community grants. Yeah, yes. I kind of left that to you. Hello. Okay, okay. I guess I'll just share my thoughts on that. Ideally, it would make sense for the entire fund source to go into Parks and Rec. It seems that that would allow for some better management for budgeting and make things easier. My concern is, though, then that would leave a significant gap in the community grants funding. And so I just don't know what that would look like today. I know that Councilmember Brown and I will be sitting down to talk about the community grants. And based off of the outcomes that we received in the presentation from Optimal Solutions, it did highlight that youth were a critical body that needed some extra resources. So that's just my two cents on I don't know that I could give any specific direction tonight until after we can... I can't until I meet with Councilmember Brown on that subcommittee. And we can bring this back at either the next budget hearing or any of the two after that, or actually we could adopt the budget. This funding is restricted, so we're not doing anything other than ECYP stuff with it and just how we allocate it we could decide later on. And I guess what I didn't ask Nikki is what the timeline for the need of scholarships or anything else since we do have what Mayor Story said of that carryover balance. And what I guess what I would want to know is what's the current need to provide anything right now and to what our normal giving for the community grants looks like for the children's portion of it. So those are two pieces of the puzzle that would be helpful for me to make any decision. Should I go ahead and address that first question there? Yeah, okay. So the, as far as need for this year with this budget will wrap up pretty quickly the school year for after school is mostly covered from what the school district has provided. So looking forward, we have not had any conversations as to whether or not they will plan to contribute again. And also looking forward, the activity that we are getting for our summer camp fellowship is operating within the gifts that have already been received. As well as within our the junior guard in particular has received the substantial fund and but for classes or anything else for the rest of the budget. It would just be based on the actual request. Okay, thanks, Nikki. It's next time you can let us know what other additional projects or programs that you think could benefit having the extra carryover to utilize. Otherwise, it would stay in the community grants and then councilmember Brown and I could and review that but I'm just, I just want to make sure that we're fulfilling or supporting parks and recs as much as possible with the carryover. So any any projects or ideas if you want to bring that next time that'd be great. All right, I would be happy to do that. Thank you. Thank you. On a related question, Jim, about restricted money, 70,000 is your mark for the local business groups. Is there a particular plan or process for Allison that funding. So that funding. When it comes in. I want to say we do it on a quarterly basis. We take a break out the restricted portion of all of the to T and we move. The children funding stays in the fund actually the 50% of the local business group money is moved over into the BIA fund since we do their accounting fund basically their bookkeeping. And then we issue a payment for the other 50% of the local business groups directly to the capitalists. But they get there's the business is get there's based on actual receipts on a quarterly basis. And so that 70,000 is just allocated to the BIA and then to the chamber. Yes, 5050. Okay. And that was, I don't think that was in the ballot measure. I believe that was council direction at the time. The measure was approved. I think if council desired, they could change that allocation. But I would need to, I would need to confirm that I'm pretty sure. Yeah. Can you repeat that? I'm sorry. It went my computer. What was that mayor story that you said? Oh, I was just inquiring that the, that 70,000 of the local business group, you know, half of it goes to the BIA. And half of it goes to the chamber. And that was just, we get reports back from a business group of how that funding is utilized. So we annually, we see the BIA's budget and the city council approved the BIA's project, which they don't really sort of allow this funding versus the other BIA assessments. But they do, the council actually does have the opportunity to approve their overall budget review it. The Chamber of Commerce, we've never done that before. You know, we've given them $30,000 ever since I came to the city. And so they, historically, they have not provided sort of a budget or, you know, proposed uses for the funding. So, and I guess also just to back up with what Director Malberg said, the council has the discretion to allocate the funding to local business groups. And so it could be 6030, past directions from the council was 5050. So that's what we've been going with. But you certainly could come up with another formula if you want. Well, I think, I mean, yeah, I know that previously we've always gave discretionary money to the Chamber. But in my view, this is no longer discretionary money, you know, based upon, you know, the, you know, the TOT increase election. And so, I mean, I just think that, you know, we should probably have better management and control, at least on documentation to see that that money is being used effectively. Particularly, and you know, the Chamber is a, it's a capital of so-called chamber. And I would like to assure then, you know, that our funding is being used for capital of local businesses. So, you know, when you come back, we could have, I would like to see maybe a little bit more analysis about that. And I'm also thinking about, you know, the businesses are going to incur expenses for the park with funding out. And I'm just wondering if, you know, if some of this funding could be utilized for those purposes to help support them in that endeavor. Okay, does any other council members have comments on this particular topic? Seeing none, carry on, Jim. Thank you, Mayor. Oh, hold on. Council members, we're trying. Sorry, Jim. Oh, sorry. Yeah, I'm sorry. I'm glad you brought up that new idea about the park with support. Because, you know, in the last discussion, we were talking about just paying for protections from the automobiles and maybe some dollars and, you know, who would pay for that. And you brought up some points in that regard, too. So I think that's worth the discussion. And I think we all know that some of the businesses are going to be better able or not so able to, you know, make a park let and, you know, carry that expense. So this may be an opportunity to help level the field a little bit and keep our Espinon area vital. Thanks. Okay, go ahead, Jim. Thank you. And then this is the last of my key discussion point slide. So this is on the fund balance that Council Member Brooks was asking about earlier. So we're projecting an ending fund balance. I'll call it a budgetary fund balance, kind of available fund balance of 1.3 million at the end of fiscal year 2223. And that's after using the 3.56 million fund balance for city council goals. So general fund is really healthy right now. Some potential uses, and I have these a little bit out of where I'm reading a little bit out of order. Our historic fund balance target has been about 500,000. So in a normal year, we would sit here and say we have about $800,000 of funding that available for additional items. Some of those things, the work project funding to do the whole project is short about 800,000. Even though we have 150,000 towards the community center repairs, there's the potential that that number can get much larger as we start getting into that building. Potentially $550,000 to $600,000 on top of the 150,000. And then we also have the resiliency account with the 385,000. Staff's recommending right now that we hold on to both the resiliency account, as well as the 1.3 million fund balance for the time being a couple of reasons. The recovery from the pandemic is ongoing. That's making Jamie and I much less nervous now than it did previously, but it is still ongoing and we may see some shifts as people return to different activities. We have a request in with Congressman Danetta to be included in his annual grant request. And we should learn the outcome. I think we find out the next week or two if we're included in the request. And then if they normally notify you if they've been awarded the grant in late August or in September, if they do their budget on time, like their fiscal year is October through September. And then we are in ongoing discussions with the school district about the community center. So that's where some of those, some of those additional community center repairs could potentially come into play with those ongoing discussions. I have one other slide I'm going to jump to and then we can come back for this one. So we do have a couple of draft minor adjustments, budget adjustments that we've listed up here. I've got notes from all of the stuff that we talked about tonight, but some of the things that we're looking at is on the park list. The draft budget right now has no revenue, parking revenue in any of the 27 spaces that are being occupied. At the time I put it together, I wasn't quite sure how that program was going to continue. Now that we know how that's going to move forward after June 1st, and I believe the restaurants need to notify planning by mid-May or so. So hopefully by the next budget hearing we'll have a pretty good idea of which spots are, if any, are returning to parking and which ones will be parklets. And we kind of plan to our parking revenue around that. On the other side, on the expenditure side, there's some additional PD staffing that we'd like to talk about at the next budget hearing. I don't have all the specific details tonight to get into it, but I'll be circling back around with the Chief to get all that pulled together. The city council member training that comes from the Brooks mentioned that I think we have it in at 3,000 right now. It should have been 10, so we'll make that correction. And the homeless shelter cost, we have just under 40,000 in the community grant program that I put in there for our homeless action partnership contribution. I found out that about 31,000 to 32,000 of that can come out of the housing fund, so that'll actually be a reduction on the expenditure side. So probably we'll offset the two items. Well, between the parking revenue and the reduction in the half funding or shifting of the half funding that'll probably offset those other two. What's on the page is probably in that zero. I did want to throw those in there, but we can jump back to the fund balance discussion, if you like. This is the last of the kind of key discussion point slides that I have. We have some questions here, so council member Brown. Thank you. recommendation of reevaluating in the summer or the fall I think that's probably a pretty good idea for now I know we've got a couple more budget meetings to go so we may identify some things along the way that we want to work with this fund balance on. But otherwise I'd say if we get through all of these budget meetings and we still have a fund balance, excuse me, fund balance, then reevaluating at that time is probably the best way to go. I do have a question and I apologize if it was already explained and I missed it or if it's going to be in a future meeting. Or maybe we did this at a mid year and I just forgot but typically we usually have a discussion about our capital improvement projects and like which specific streets we want to do work on and what other you know kind of public work projects are important to us where we want to put the money into those. Will that be a part of this budget process or is that going to be a separate discussion at another time. So we typically do the CIP during the second budget hearing we kind of we have this conversation about fund balance gives Steve a better idea of what kind of funding he's going to see he's got a pretty big list right now. So it's pretty close to me and pulled together but we will definitely be bringing back with the full CIP at the next budget hearing on the 19th. Oh, perfect. Okay, I don't know if you can tell I'm chomping at the bit start the name in the streets that needs more. Okay, cool. Thank you. Thank you mayor story. So I think the only thing I would ask for and then this would be obviously at the discretion. Of the council now that I know a little bit more about the parks and the updating of it and moving the funding to jade street I and because it's larger I and knowing that just to fill there's like the squishy stuff at the cost related to that. I'm requesting that we increase the 150 to 300 since it's a larger space and because we do have a fund balance for the park structure or the area around it. And I'm just wondering if we can do that for for next time as well. And I don't know if I can do that or not. Well, I guess I would ask maybe a staff to come back with some sort of preliminary assessment of what the project was in town and then what the cost would be on it. I guess I feel a little uncomfortable just blindly drawing another 50,000 and and basically committing that or that project. You know, without some sense of, yeah, that that's what is necessary and this is what we get from it. So maybe just again more information back to us on going to that particular question. Jim, I'll just be a little bit more specific. It's the cost I'm referring to further requested for the still of the spongy. I don't know the name of it. Spongy stuff. Yeah, by doing that really takes away from all the other issues of the universal design and things like that. So that's the cost that request I would be making. Okay. Yeah, we can definitely have that conversation in more detail, especially when we're talking to the IP. Yeah, and maybe some more background about universal design. I know I've heard Council Member Brooks mentioned that a couple of times that and I'd have to say I'm not really familiar with what that is. So maybe some education, at least for me and for the other Council members about that. Can I do the presentation? Well, I'm kidding. I'm kidding. I'm kidding. Well, I was going to say it sounds like, you know, a great deal about it. So I'm eager to learn about what that is. Council Member Bertrand. Yeah, just I think that probably escaped you, but I've been reading some emails about this and maybe that got got them also. And so at least two emails on different kinds of park designs, universal design was the term that I remember. So it's probably someone buried in our email. Okay. I look like we're ready to go on with your presentation, Jim. Okay. So actually, this is the last slide I have. So what we're looking for today are recommendations. That's kind of the label there. But what we're looking for is any of the questions, any budget questions that we have. So I've got a good page here of stuff to follow up on any areas for additional details on either anything we talked about tonight or anything we haven't discussed yet. If there's anything else we want to bring back to either the next May 19th or one of the other ones we can do that. The preliminary feedback on those staffing that you see why, why P and general funds we kind of just did that. So I think we're good there. So it's really just any additional questions or requests for additional information outside of what we've already talked about. Council Members have anything. Yeah, Council Member Bertrand. We talked about this when the library was being planned and now that it's built, are we planning any programs with the library? I think Nikki had sort of contemplated doing that for after school kids or the youth. And I'm just wondering if that's progressed, if that hasn't progressed, then, you know, start getting that discussion going. I think that would be important because there's a lot of kids that go there after school. And also other times. I don't know if Nikki wants to jump in or if this is something that's sort of on the back burner at this point. Well, maybe that could be an item we have to bring back to us. Thank you, Mayor. I think that's a good idea. I know we talked about a lot with, you know, the library was in planning and then construction. We're always, we're looking forward to having youth activities there. I know I. Hey, any other Council Members have maybe some final questions. I think, Jim, if we were to maybe have some questions, we can email them to you to include in our next section, budget section. Absolutely. And I get I don't see any other Councilman understand, but there was maybe one overall question that I had about, you know, you're on your presentation about using Measure F funds to kind of balance our budget into the future. And I guess I wanted to ask and just kind of make sure because, you know, the Measure F funds were, you know, approved for specific projects. And I know it included public safety as well. But when we are allocating those funds, are we accounting and tracking them so that we can assure the public that they're being used for the intended purposes? Yeah, actually, I kind of updated it in the last 12 months or so. But I do have a spreadsheet that has tracked from year to year measure of revenues coming in and what they've been extended on. And when the pandemic hits, we kind of, I kind of stopped doing that so I can, I can definitely revive that spreadsheet and get it caught up. Well, I think it's, I mean, and move going into the future when, you know, we're kind of, we're using those funds that, you know, balance the budget. I just think it's important that we be able to be accountable to the public and point to them and show them, yeah, these funds, this amount went to public safety or we're putting more into the war. I know the other people are done. But yeah, I think that that would be important for us to do in retaining the public confidence. Anything else? Any council members have last words? Any staff have last words? I don't think so. I just want to thank council for all the feedback. There's a lot of really good questions and we have some good material to go over next budget hearing. So appreciate all the feedback and questions and we're going to come back in two weeks. We'll see you in one week in a regular meeting, but in two weeks to go back into the budget and hopefully be able to dig into some of these topics more deeply. All right. And yeah, thank you. And council member Tran. I think staff did a great presentation and thank you, Jim and all the other members who answered particular or pointed questions. Appreciate that. It made it much easier for me to ask questions because the topics were well presented. So I appreciate that. Okay. I appreciate that. I do want to thank the department heads and staff also. This year, everybody seemed to get everything to me really quickly and made this process much easier. So I do appreciate it. It's much smoother this year than it's in the last few years. All right. To those, to all the staff in the department heads. Before I do close this out here, I did want to check with Larry make sure that there are no emails from the public. I see that there are no attendees. Mayor's story. We do not have any emails on this. Okay. Hearing that. Thank you, everyone. I will now take us to adjournment. And I will adjourn this meeting until our next regularly scheduled meeting of the capital city council on May 12, 2022 at 7pm. And to then our next special budget session, which will take place on May the 19th, 2022. Thank you everyone. And as I always close, be kind to yourself and be kind to others. Everybody have a good night. And until next time. Bye bye.