 Councilmember Harlan. Here. Councilmember Bertrand. Here. Councilmember Bottor. Here. Councilmember Peterson. Here. And Mayor Termini. Here. Please rise and join me in the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation, under God, and indivisible, with liberty and justice for all. Are there any additional materials for this evening? Well, I just want to make sure everybody got the spreadsheet I handed out on the capital. Everyone have their spreadsheet on CIP? Yes. Tonight's meeting, our technician tonight is Lynn Dutton and the meeting can be viewed from the website as well. Thank you, Lynn. Let the camera be kind to me and the rest of the council members and we'll go on to additions and deletions of the agenda. Are there any? Staff has no changes. We'll move on to public comment. Anyone who would like to address the council on items not on this evening's agenda, please step forward. Seeing none, we'll go on to city council and staff comments. Mr. Treasurer, do you have anything to say to us tonight? Yeah, I suppose I do. Since we're talking about the budget, I thought it would be a good time maybe to solicit public comments or suggestions as to how to weather the storm that's ahead of us. So was it last council meeting which I missed, but I thought I heard somebody came up and just mentioned risk and mansions. You know, why don't we turn that into some sort of profit making or deal? And it was like, I don't know if we'd thought about that and I don't know whether it's even practical, but the notion of people, you know, the public and we have a lot of old officials and people have been around here a long time who could come to us and say, you know, here's an idea. Maybe we haven't thought of or here's an efficiency that we did back in the old days or here's a department that we used to do differently because for those in the listening audience who don't appreciate yet what our budget crisis is, that's looming. It has to do with the PERS obligation, right, which is the basically government tensions. So the state has burdened us with a larger share of that obligation more recently and it's going to hit us harder in the next coming year. So I think the numbers are half a million dollars next year and then two million dollars every year thereafter. So that's like 13 percent of our budget, 15 million is what we have. So that's a sizable chunk of money we're going to have to come up with and some creative ideas might be worthwhile. Good news is we did talk to the auditor when we were looking at, you know, selecting different audit agencies and they all said that we were in good shape. At least we were thinking about this. I mean, I know this has been on our radar for a while and we have the emergency funds and we've been, you know, we've been planning for this for a while. But we are not there yet. It's going to continue to be a problem. And, you know, we've got plenty of ideas. But what worries me is that, you know, there's, we're just going to end up doing the obvious things, which is, you know, more taxes, either sales tax or hotel taxes or reducing services, which is either a layoff or eliminating some department. And I know we've talked about cannabis tax, maybe that's our saving grace. But again, the notion of soliciting the public for some input, maybe, maybe we'll get some good ideas out there. Thank you. Thank you. I'm going to address the rest of the staff. Staff, any comments? I just wanted to let the council know that today I received a call from the supporters of the ballot initiative and they expect to be bringing the petitions in end of the week. The rail trail spending capital, spending money. Okay, great. And now council members. Ed. I just wanted to address the treasure. Oh. I mean, I do the wristband. I have no other comments, but just. That's good enough. Just with regard to the wristband, the term that I like to use, which might help you when we start thinking about other uses is when you say the word wristband, think of the word Titanic. And I think that it's best to leave it alone at the bottom of the ocean. Best to leave the wristband in tune. I don't think it's a revenue source ever. I don't think it has a lot of I think that I'm going to go beyond think I think this council, many generations this council has tried to do many things with it and the useful use of it other than possibly if we get it into a park and are able to turn it over to some lessy that wants to take care of the maintenance. Once we get it all done and we go down that road could be possible, but don't be thinking that that's somebody that's going to come to the podium is going to have a miraculous new innovation that hasn't been thought of. Thanks. And times change, but for 30 years, wristband was an albatross of potential profit. I didn't mean to belabor the wristband. I just started the notion of a, you know, a clever idea. Sure. Or even if the public saying, you know, here, here are some efficiencies or, you know, don't touch this. Here's here's our third rail. Don't whatever you do, don't touch our special projects. I mean, if there's the more input we get like that, I think the easy it'll make our decision. And, you know, the subjects are the the activity with the budget is going to go through the financial advisory committee. Right. They're going to come to us first and we're going to have get to call through the ideas and maybe come up with some new ones. But but I as a member of this as the chair of the financial advisory committee would welcome even crazy ideas like like the wristband to at least to evaluate. I read. Kristen. Anything. Jock. We were we were filmed a couple of meetings ago. Did you know who that was? Anybody know about that? He was in the chambers. It was for the footage for the man of the year award. Oh, I'm trying to get some footage of Ed in action. Oh, good. And there was great footage. It was action shots. They're nicely done. Congratulations Ed. Congratulations. Getting man of the year. And I have no comments except next Wednesday, our concert start. So come on down there. Let's go to the consent calendar. There's only one item. The minutes from our last meeting. Approval. Is there a second? Second. All in favor? Aye. Opposed? It's unanimous. Move on to general government public hearings, continued discussion and possible adoption of our next budget. Mr. City Manager. Mr. Mayor, members of the council, I'm just going to give a quick recap sort of a summary of where we're going to go this evening and then our finance director is going to pick up the ball and start running with it. What we're going to do is we're going to just quickly touch on the budget sort of summary that we touched on last meeting. We'll skim through it pretty quickly because I know the council has all seen it. We do have an update then to present about sales tax data and some proposed cuts to bring the budget back into balance. At that point, then we're going to pivot and talk a little bit more about the CIP and the workload within public works. We'll be then focusing on the response to the council questions raised at our last budget hearing. And we will be focusing on some of the items that the Treasurer mentioned during his comments about sort of long term per strategies. And then lastly, we'll be pivoting, I think, to the council actions and the direction staff needs for this evening. So with that, I'll turn it over to Jim for the presentation. Thank you. Good evening, Mayor and Council. So real quickly, just to kind of recap from our last meeting, our local economies remaining relatively stable, but we're starting to see some of our major revenue sources slow down and even decline when we talk about sales tax. Our budgets, our status quo, same as last year, no net new positions, no new revenues and CalPERS still is our major threat on the horizon as far as city resources are concerned. And then again, we're heavily relying on sales tax and now that we're seeing sales tax dip a little bit, it's causing a lot of concern from our side. On the proposed budget, we're estimating an ending fund balance roughly at $931,000 for June of 2019. Contrary to recent articles, our reserve levels are fully funded and remaining intact. The Keptola Library will begin this year. This is our first year of Measure F money and also our first full year of the SB1 Road Maintenance and Rehabilitation Act money. And this is a general fund summary and I'll touch on a couple of these on the next slide, but you'll see here that we're estimating that our ending fund balance for the current fiscal year, here ending in a month, is right around $908,000 and that our balance, our budget is balanced and revenues exceeding expenditures by just slightly under $23,000. So again, on the revenue side, we're seeing sales tax slowing other than property tax. Really all of our revenue sources are really kind of flattening out. Property tax is kind of propping them up a little bit right now. You'll see a decline in charges for services. It was really kind of a spike last year as the State Department of Finance allowed us to get the rest of the money for the risk and loan paid back to the general fund. And then on uses of money and property, the increase there is primarily due to interest rates rising. And actually CalPERS just put one out right before this meeting and we're at a big 180 now, 1.8%. So it's been probably about seven or eight years since we've seen it at that level. On the expenditure side, personnel, the increases are primarily due to the CalPERS cost that the Treasurer mentioned in the UAL specifically. Contract services, as the City Manager mentioned, we did do some reductions from our last meeting in order to get the budget balanced and we'll go over those as well. And the other financing uses, you'll see the big decrease there is really that last year we had a one-time transfer of fund balance over to the library project. This is the graphical picture of that, if you will. And the takeaway on this slide is the last time we showed you this slide, the sales tax had 1% growth annually and you can see we've zeroed that out right now. We won't get the sales tax data for the most recent quarter till probably the end of June and we may come back and revise at that point. But right now we're really not sure exactly what's driving it down. So revisions from our last meeting a couple of weeks ago, as I mentioned, we reduced sales tax revenue projections both in our current fiscal year as well as our proposed budget and plan budget. And in this fiscal year that's a direct hit to our ending fund balance. So last meeting we were just a little bit above a million dollars ending fund balance. Now we're down around 900,000. It also our district sales taxes measures O and F also take a hit on those 48,000 in the current year and then 10 just almost 11,000 in the 1819 and then just under 22,000 in 1920. On the expenditure side, so we reduced contract services by 93,000 and I have there was a list in the agenda packet and I have a slide on that as well. Also we adjusted down on the CalPERS payment. We're planning on making the annual payment in July rather than spreading it out over the full 12 months of the year and we save about three and a half percent by doing it that way. I think this will be the fourth or fifth year in a row that we've done the prepayment. The police department cut $10,000 from their overtime budget and we reduced the measure of expenses just simply to match the measure of revenues. So measure of full 100% of measure of revenues are still programmed to the war of jetty and flume just at $11,000 less than previously. So this is the list that was in your agenda packet with the contract services and I don't want to read each one but we're happy to answer any questions if there's any questions on any of those reductions. I'd like to talk about it but I'll wait till you're finished. Okay, certainly. So I'm going to shift over to Steve right now and he's going to cover the capital projects. You're still driving. All right. At the request of the treasurer and city manager we kind of looked at public works work plan or distribution of administrative time that we spent and we came up with this pie chart that kind of shows how we split out our time. This is what we would hope to achieve and it breaks it up into administration, permits inspections, public assistance, stormwater program, development review and then the two that kind of stick out there are the community projects and the CIP. And the reason we showed it this way with the community projects and the CIP kind of separate is those are really the ones that we can adjust. All the other ones for the most part are pretty stagnant and you're in and you're out basis. We spent 17% of the time administration. That's mainly on my end, managing crews, managing staff, permits and inspections. A lot of that is, you know, building permit, doing the inspections of projects as they're going through and issuing encroachment permits. They're a big one. Danielle in my office spends quite a bit of her time doing that. Public assistance is, you know, calls, emails, people coming to the counter. We all spend a great deal every day doing that. Stormwater program, I kind of want to highlight that. That's, you know, the unfunded state mandate that we reduce stormwater pollution, water that enters the creek in the ocean. And we spend a good chunk of time doing that. It's almost Danielle's, the majority of Danielle's time is doing that. Development review is strictly looking at building permit and planning applications. So that takes us to the community projects and the CIP. So the community projects we want to talk about, these are projects that we end up working on that aren't really scheduled anywhere. Best example is probably Topaz and Jules Street traffic. That's obviously taken a large amount of time over the last year and a half. Village employee permit parking program, which we've implemented, took a large amount of my time in getting it set up. Parking and loading issues along Capitol Avenue. Trees doing issues of our trees and Park Avenue and at the wristband. Creekside access at the railroad. We built that fence. It took several meetings and negotiations with the property owner there to get that taken care of. Perry Park restoration and code enforcement. Those are just examples of projects that kind of pop up that eat away in our time. So this is the same slide that we showed you two before. This is our distribution of labor. Like I said, the administration through the development review kind of stays the same. And as we develop more community projects, we end up taking away from our CIP project. So that's what happens. And the point here is just make us all aware that these community projects while certainly important, we need to be cognizant in the amount of time they take up in the public works department. So this is the handout I gave just before the meeting. This is the top part of the existing projects that we're working on that were funded in previous years. I'm not going to run through them, but you have the list in front of you. You can see it kind of gives the amount of money that was identified for it, how much we spent, where it came from, and how much is left to keep it going. With Kailash on my staff now, we are working on all fronts to try and get these projects completed and feel good about that. These are the projects that have received funding allocations this year. As Jim indicated, there's no general fund allocations to any of the CIP projects this year that's either grant or measure D, RTC measure D, or SB1 funds, or measure F funds. And so that's the allocation of new funding we have coming into the CIP for this year. And one project we haven't talked about is probably the biggest drain of time, and we're not drain of time, but use of time, and money in the city as the library. We will be opening bids on that a week from today. It was delayed as supposed to be today, but we had to delay it to get some attendems out. And early indications are we should be getting some good bids. We anticipate getting six bids on that project. Come back to Jim now. Yes. So at the last hearing, there was a couple of items that the council requested that we follow up on. So the first of those was the community grant program. So the council adopted the improvements to the community grant program in 1617, setting up a two-year grant cycle. And the idea was to separate the budgeting from the allocation of the award. So we do the budgeting in March through June, and then once we have the total amount fixed, then in the April, or I'm sorry, August through September timeframe, then we allocate the money, council allocates the money to the various nonprofits. Staff's proposing that the budget remain at 275,000 for both fiscal year 2018-19 as well as 1920. The second item was the home reuse fund. So the balance in that fund is just a little bit shy of 206,000. Those funds can be used for down payment assistance for first-time home buyers, for health and safety improvements, rehab projects for existing owner-occupied properties, and as well as we can do housing assistance for affordable housing projects within the city. And we can work directly with developers on those. And I'm going to hand it off to Jamie for these next few. So the next question that the council asked about was coming up with some options for the long-term PERS issues. I don't know what the city is going to face. And I think the number one thing I want to stress is that this is the beginning of a dialogue with the council. This is going to be an issue that we're going to be confronting for years to come. I don't expect that we're going to end it tonight. In addition, when we're talking about potential tax measures, our next regular meeting coming up in two weeks, we will have on the regular agenda is discussion of items to direction to staff about what we may want to put on the ballot for the November election. So loosely, you know, we can talk about the PERS options and what we'll do about the increased expenditures. And really there's a couple of different ways to look at it. One is as we can grow revenue and two is as we can cut expenditures. That's at its most basic level. So we've listed out a couple of different ideas here on new taxes or ways to grow revenue. I don't think they'll come as a surprise to anyone identifying the cannabis tax, which is when we spend some time talking about this spring. New hotels, new hotels generally bring in between three and $600,000. Of course, those aren't within the control of the city as the city isn't a developer. And they obviously take time to come to fruition should one come to pass. The TOT each 1% of TOT is about $150,000 a year to the city. And it does require again going to the voters for approval if you were to change our TOT. Obviously, the city is heavily reliant on sales tax. It's a strong revenue stream to the city. Each quarter percent local sales tax is about a million dollars in annual revenue, which is what we see in measure F. Looking long term, frankly, we have identified sort of a weakness in the city is that we are heavily reliant on sales tax and going and increasing our reliance on sales tax when we imagine where sales tax may be in 10 years, whether that's going to be a revenue stream that's going to keep up with inflation. I think that those would be factors that the council would want to take into account. We can take a look at our fee schedule again. I know we went through that. It feels like just the other day, but the fee schedule is obviously an opportunity to take a look at what our actual costs are for services and whether there's more cost recovery we can achieve. Contract services, whether it's looking for opportunities to contract services out. Street sweeping example is one that we've obviously explored. Shared services. We're exploring that with the building department right now with Scotts Valley. And then in other cases, whether it's more cost effective to bring projects in-house. We've been very successful the last several years in doing some CIP type projects with our own staff. We have very capable public work staff and they were able to repair the Hooper stairs and do the upper Esplanade Park project for significantly less than it would have been for contracting with contractors to do that. And then in the long term, you know, it's really dependent on other expenditure reductions coming down to council priorities and what the impacts are to service levels and what the community is willing to accept and what the council is willing to accept. So like I said, it's an ongoing dialogue that's going to evolve over years, I think. And it's going to be refined as we get more revenue information and we see where our taxes actually end up coming in over time. This is touching very quickly on the sort of the big picture work plan items. Steve talked about the CIP projects. Those CIP projects are obviously priorities for the council. Whatever we decide we're going to be putting our money in, those are important projects for the city. In addition, these are sort of the non-CIP type projects the staff has identified as priorities. If the council wishes to amend, add, subtract from this list, certainly that's something we would look for feedback on. If we've gotten it right, that would also be helpful. We've also talked about the general fund balance ending at about $900,000. The FAC has reviewed this and recommended leaving it intact at this point in fund balance to offset potential future budget shortfalls as we struggle with the PERS increases. Other options the council could consider would be transferring some into the PERS trust. It does increase potential rate of return the city could achieve but it really isn't intended as a short-term investment vehicle. It's really investing in the market. Do you attach a dollar to that? Hypothetically, if we put $500,000 into the trust fund, what would we net? What would it gain us? So what it really gains you is the delta between the lay freight, which is 1.8% as the finance director mentioned earlier this evening and then whatever the market does over the intervening time period that you have it in there. The risk, of course, is sort of classic financial advisor advice is don't invest in the stock market if you're expecting to only leave it there for a year or two, right? Because we all know stock markets go up and go down. If your time horizon is 5 to 10 years, obviously being in the market is a much better place to be than be sitting in lay. It really comes down to the time horizon. I think off the top of my head, I wouldn't recommend moving more than about $300,000 out into something like the PERS trust. I think that we're going to want that fund balance because the last two quarters, we've seen sales tax declines and we're projecting a flat sales tax into next year and if we continue to see declines, we potentially would be eating into that fund balance. Would you explain the mechanism of the trust fund simply? Yeah, so the mechanism behind the trust fund, this is a relatively new thing that was authorized by the state several years ago and what it essentially allows us to do is to move money into a third party's hands that's holding it in trust for the city to be used for a specific purpose and in this case it's for PERS costs only. Now, it's quite flexible in the sense that right now our balance in that fund is about $9,000? It'll be a little over $800,000 by the end of the year. A little over $800,000 by the end of the year and we have more than $800,000 a year in PERS expenses in any given year. So, in any given year we could fully deplete the PERS trust to use to pay our PERS bill. Of course, it doesn't pay the bill the year after or the year after, but it can be used for that and our PERS bill every year exceeds the value of the trust at this stage so it's fully liquid in any given year. If we ended up in a position where we had more than $2 or $3 million in there then it would be more than enough to cover one year's PERS bill so it wouldn't be fully liquid in any given year. What was the rate on it in the last 12 months? I would have to look that up. I know they had a down quarter at the beginning of the year. I did see that. Was it as low as the late rate? Over the course of the year I would guess not. It's hard to do. But they did have a down quarter. January through March they did have a down quarter. To think about this, this is a lot like you probably invest in your own 401k back home is the city authorized putting $600,000 this year? $500,000 last year into the PERS trust and so what we've done at a staff level is we've broken that up into individual payments over the course of the year, basically dollar cost averaging rather than taking the $500,000 and transferring it on day one and then watching the stock market decline 30% the next day just like you do with the 401k sort of moving in $100,000 in chunks in time just to avoid the situation where you move it all in and you're betting everything on the market performing well in the very short term. The other option would be to put money into the facilities reserve. Again, that's fully discretionary. There's obviously a lot of deferred maintenance around different city facilities and it certainly could be put to use and could be pulled back into fund balance at any given time. So for this evening there's a couple things. One is you've received the presentation. Two is provide us any direction. Are we headed in the right track? Is this what the council would like to see? Are there changes that we should be making? Are there more questions that we can answer? We do as soon as we get feedback about the community grants whether or not we're going to allow new community grants to grant recipients to apply this year. We're prepared as staff to release the Notice of Funds available to our grant recipients and then determine whether or not we want to hold the June hearing if we need to have a June 6 hearing on the budget or if we're prepared for adoption. So with that, staff is available for questions. Let's go through questions. Stephanie, questions? Well, first I want to do the community groups in July rather than August and September because their budgets all start July 1st and they need the money they need to know what's going on. Well, they need time to apply. Hypothetically, if we gave you direction as far as new grantees tonight you could open up the application process and what do we usually give them? 30 days? By the end of June we have all the applications in and I can get a committee formed I can name them tonight and we can have them in July taken care of. Sound right? Yeah. We might not even have to give them 30 days if it's a shorter form they can do it in a week. They're anxious to get the ball rolling too. I understand. Mayor, council members, they do have other items and we get turn over within those groups so sometimes that takes long. I think 30 days is a fair amount of time for them to in fact we just had a notice today of one of our agency is a new person taking over so when that happens you generally have to add some time so I think there's going to be a number of organizations that can get it done relatively quickly but there's also other ones that don't have the resources to do it that way. At this juncture for clarity perhaps we can get a consensus in the council on whether or not we want to allow any new applicants personally I think that the applicants are there and no one wants to drop out that's fine we can always use that money to give to others but I'm not in favor of opening it any new applicants. Anyone else want to chime in on this? I'm fine with that position. Kristen? Okay so you've received direction we are not going to accept any new applicants we can open the application period and then as soon as it comes back and we close it then I'd like Ed and Kristen to be the subcommittee to see where all the dollars lie in the council in July. Good. Carry on. Okay I have some other questions. Go ahead. On the changes to the contract services I'm just going down the list the first one is United Way $1,000 I think isn't that for the community assessment project that we use every year we participate in? It is. Interestingly enough we discovered when we were going back through this with the fine-tooth comb that we were double budgeting it both in the community grant program and here and so we realize every year we were contributing I think it's actually $2,000 in the community grant program for the community assessment this was frankly a vestigial it was just an old line item that wasn't getting built and wasn't getting used. Okay so we're just eliminating that. So they are still funded and we are still contributing to the community assessment project. I would like to add have full funding for the recycling media it's a Central Coast Tri-County project that I think Monterey County, San Benito County and Santa Cruz I used to be on this committee but I haven't been for a number of years but they pool their money to buy add time on the radio and on television and I haven't seen very many of them but I think it's a good cooperative effort do you want to give us an update on that Larry? I'm sorry which line item? The recycling media and the recycling New Brighton Middle School I think we should add that back into the middle school unless that has been a double line someplace else. The Air Council the New Brighton we tried the last few years to get someone there to run the program and they haven't had that person so that's one of the reasons we took it out this year we just haven't had the response from the middle school the other line I would have to look at to see if we can cut that or not so we get funding from CalRecycle that we use for the Central Coast media recycling as well as other types of recycling if someone steps up from New Brighton you can bring that back to us have you talked to the principal? I have not talked to the principal have him shake the tree and find a teacher to carry on this because that was a good program that we had for years anyway I think that was sort of a contract with the recycling media people and that was our portion was $5,000 down to the Soquel Creek Fish Monitoring why are we reducing that? that was based on the actual contract amount we realized we had a little fund balancer that we could reduce same thing with the Soquel Creek Water Monitoring it was the same those are my only questions on that questions? none? any questions? last week or time we met I was unsure if they were fully funded I just want to make sure one was the sidewalks on park and the other was the wristband you said you were looking into it and you weren't sure are both those projects fully funded or is there still a shortage? I suspect in the wristband we're going to have a funding shortage and then on the sidewalks I think we'll be fine do you want to ballpark the shortage on the wristband? at this point probably about $100,000 we're revising the plans right now trying to tie that down that's why I don't have an exact number but park you think it's going to be okay okay Steve? so on the wristband this is just for the portion of the proposed plan that we're doing right now I think it's the wall so we have many more things like the pool and the bocce cord no this is the full park project except for the fountain I think we're back the fountain we'll use the arena okay great I didn't realize okay alright you haven't gone down the road yet I do have a question so in terms of the grant programs we lost our person who broke grants and CBDG grants the lady that did that so that was an income stream also so what are we doing with that are we reaching out to an agency are we trying to get another person so a couple things Carolyn Flynn is no longer with the city we have contracted with a group Paul Ashby group and they actually ended up preparing the most recent CDBG grant application that we submitted which was the $2.7 million I believe for the Clairs project and then to restart our housing programs that we used our last CDBG grant allocation for I expect that if we are successful with that grant application you can't apply for another CDBG grant until you've expended the prior funds so we're good for a couple of years where we kind of burn through those funds but if the relationship works well the Ashby group has been a real good partner so far and we'll see if the grant application is successful but has been a good partner so far with that process that was the first time we've used them in this capacity they may have helped with some other elements in CDBG in the past but this is I think they've stepped up into a bigger role okay thank you one of the questions that staff is looking for direction on is the fund balance do we have a consensus on leaving it all in the general fund putting any event in the trust fund putting a portion each the finance advisory committee has recommended putting the entire keeping the entire amount in the general fund and not putting any in the trust fund is that accurate okay Ed do you want to comment on that I would be open to putting a little bit of money into the purged trust fund but if the fact is recommended against it I'm okay with that decision the concern I have is a lot of the money the general fund was spent on completing the library which means that a lot of the projects which I could go down the list things like the bathroom in Monterey Park and other too many to name are being put on the back shelf the one concern I have is that we've put quite a bit of money and if that fund is short I would be willing to authorize depleting the general fund by the amount necessary to augment that to make sure that that project can be completed I think although the citizens have kept them waiting for a long time for the library so have they for the completion of the wristband so I would be in favor of depleting that number to fully fund the wristband is this an appropriate time or should we wait Steve until we actually have numbers come in on bids and see how short we really are that would be my recommendation yes would be to wait until we have bids and final pounds I feel good about it that concept if we were not to put money into the purse fund other places and we were to leave it whole then I would go along with that recommendation to wait until as long as we I wanted to bring it out for discussion absolutely and that we don't go to the purse fund and the money is still whole there with the understanding that the other things just the wristband for now we can get greedy on all kinds of other baby steps I think the wristband is a big thing we need to live on Christian do you want to comment on the fund balance I was going to say I think we should go with the fact recommendation to leave all 900,000 in but I am not against the idea of taking the $100,000 and putting that towards wristband either one of those two I am fighting with when the time comes I am not sure how I feel about the purse trust fund it doesn't sound like it is one of the greatest investments it is a good mechanism for the long term I guess that is sort of the take home message on that it is a great mechanism for the long term the question becomes is this something we are going to be tapping into in the next two or three years and if that is the case probably not the right time I am not hearing a lot of love from the finance director and that is always my bell weather I am not going to say anything else on to you Jacques part of the discussion was the liquidity of the money if it went into that fund maybe you comment on that we were very concerned that because of reduced sales tax and all of the various crises that are looming that we should stay as liquid as we can this coming year so that we don't have money tied up and some fund that we can't get too quick I would point out that we have enough money in the trust fund now to fund a single year of purse so anything we put into it we would most surely use next year so it is not like this trust fund is in a locked money way that we can't use for purse which is why it is there but I go along with the will of the council one more comment in conjunction with the library it would be nice to have both projects sort of in sync in terms of risk pin in the library because that is going to be a whole new area just all priorities I realize Stephanie I don't have any strong preference about it I agree with the treasure though I want to have a discussion about the long term financial plan for the city I think it is great to increase the TOT put that on the ballot I think it is great to try to look for other sources but we are not looking at our service for fees we have raised them and raised them and we always used to have them just a reasonable level but I understand we need money but I am not crazy about it I have argued against the $500 fee to appeal something I think some of our fees have gotten too high for the average member of the public but I would like to have a discussion about what we think we are going to do in a couple of years but I like some of the ideas but who knows we will just have to wait and see what that does my comments are thank you very much Jim I see all the department heads here thank you chief for preemptively reducing your overtime budget that is wonderful thanks for being part of the team all the department heads really jumped on this and saved us a lot of money and have always done that are there any questions of any of the department heads I would say don't hold your breath about that one I don't know whether the theater site can actually hold 75 rooms with everything else they are going to do there that would be a massive development so I would say 45 rooms project something like that we will give you 80 rooms on 41st avenue I will trade you trade you a Baltic place for park place then I would like to entertain a motion at this time if it is not too crazy for the adoption of this budget I still move to adopt this budget as a point of clarification we do actually have to bring back the resolutions or some specific resolution understood but we want to tell you where we are so I have a motion to approve the budget is presented and amended is there a second for the discussion may I have a roll call vote please councilmember Harlan councilmember Petrand councilmember Peterson I Mayor Termini anything else to tell us I think the next action would be to cancel the remaining budget hearings that we have on June 6th 6th and 21st and then what we will do at a staff level the June 14th agenda is looking pretty rough so I think we bring back the resolutions for adoption of the successor agency budget and the city's budget on June 28th that's perfect thank you very much great work and final comments from our esteemed council I just want to echo what you said I want to commend the finance director for it makes our job simple when you come I mean obviously if there's not a lot of things to do it makes our job easier so I appreciate all the time and effort from all the department heads including Steve, Katie, every chief so I appreciate that effort so thank you very much anyone else good night staff record that's right