 The meeting is now live John is veteran member did you want to facilitate? Sure, no problem, and thank you for the for the email and Usually I can never hit the link and make it work I always have to put in the ID number that which slows things down a little bit so I will call that this meeting of the long-term financial policy and on a subcommittee to order and Madam Secretary, could you Indicate how individuals can participate during public comment at each agenda item the item is presented The chair will ask for subcommittee members comments and then open it up for public comment The host in the zoom will be lowering all hands until public comment is open for the agenda item Once the chair has called for public comment The chair will announce for the public to raise their hand if they wish to speak on the specific agenda item If you are calling in to listen to the meeting audibly you can dial nine to raise your hand the host will then call on the public Who have raised their hands? Public comment will be limited to three minutes in a timer will appear on the screen for the subcommittee members and public to see Once all live public comments have been heard the meeting post will read email submitted If you provide a live public comment on an agenda item, but also submitted an email your email comment will not be read during the meeting Additionally, there is one public comment period on today's agenda to speak on on agenda matters, which is item two This is the time when any person may address the subcommittee on matters not listed on this agenda And also we need to do the roll call Yes, thank you madam secretary. I appreciate that chair Rogers member Schwedhelm Yeah, member Sawyer here Let the order reflect that all subcommittee members are present with the exception of chair Rogers Thank you very much. And at this point we will take public comment on items not on the agenda Do we have any any hands raised or any other? Request to comment we receive no emails and I see no hands raised. Thank you very much. Then we'll continue on to Item three which is the Proval of minutes any changes to the minutes that you noticed Council member look good to me. All right. They did to me as well. Thank you. So we'll then we will move on to item 4.1 and The our chief financial officer Ellen Alton, can you Introduce the item, please. Sure This item is our Fiscal our general fund budget performance update through the third quarter and Veronica Connor who is our budget and financial analysis manager has got run through the The slides excellent. Thank you very much. All right. Thank you, Alan Yes, my name is Veronica Connor of the budget and financial analysis manager And I know I might be a new face at the subcommittee meeting But I assure you I've been watching many of them and I've helped Alan out with these quarterly updates in the past So I will be running through these numbers with you today a next slide, please and welcome aboard. Thank you very much So we're going to take a look at our third quarter general fund revenues and our third quarter general fund expenditures We will put those together and try to see where we might land At June 30th, 2022 in the general fund At that point, I will turn it over to Alan and he's going to give you an update on our parking enterprise fund And we'll be happy to answer any questions and next slide And next slide, please So to start out with our adopted budget of revenues and the general fund We've shown you this pie chart before and I always like to start the presentation out with this just to kind of give a visual reminder That when we're talking about general fund revenues, it's really sales tax and property taxes Those are the big chunks that we're looking at. So we like to pay the most attention to those It's 53% of our overall adopted budget And when we try to see where we get a land for year end, it really is contingent on the performance of these two large categories So when we came and talked to you back at second quarter, we were recommending to appropriate additional revenue, which we did at council back in February So when this adopted budget was put together, it was last spring. It was in the height of the pandemic There was a lot of uncertainty and our numbers were just far too conservative. So back in February, as you probably recall We appropriated an additional six million in sales tax, an additional one and a half million in property tax and two million in rptt And next slide, please Veronica, could you do me a favor and go back to the the pie chart just for a moment and explain the because the other taxes Are higher than the property taxes. Could you explain the other taxes for those that might be watching? Sure. So other taxes is primarily the biggest chunk in there is the vlf swap And that comes with our property taxes That also contains our cannabis business tax and our transient occupancy tax and then there's a bunch of other smaller objects in there Great. Thank you very much. Sure Okay So this is our year to date performance as of march 31st 2022 So that first column there operating revenues this shows all of those major revenue categories that we just saw on the pie chart on the previous slide The second column our adopted budget. This is what we adopted about 178 million dollars back in june And then the mid-year changes The first one property taxes as I mentioned We appropriated additional revenue because we found our adopted budget was just far too conservative same with sales taxes We appropriated an additional six million And other taxes that two million was rptt So charges for services, you'll notice a reduction of revenue there that took place because our water billing function that is in We used to be in the finance department. We moved over to water mid-year So we used to have that operate within the general fund and we actually collected revenue from the water department into the general fund To pay for it. But when we moved that out to the enterprise fund, we also had to then reduce our revenue as well So although we have a reduction in revenue. There was also reduction in expenditure. So it was a net zero to the general fund The final budget moving over to the right is just the sum of those first two columns So that totals up to be about 186 million dollars is what we are hoping to collect by year end And then in year-to-date actuals That shows where we are as of march 31st 2022 So that bottom line which shows that we're at about 65.68 percent Um Well, some might expect that to be closer to 75 percent looking at three quarters in We obviously have some timing considerations. So we'll kind of talk through those as we go So property taxes are top line at 55 percent. This one we've discussed before we get a big installment in December and another installment in april. So as of march 31st It's right where we expect it to be at 55 percent And we have seen our amount come in for april and we do get us one smaller extra piece in june An accrual that occurs at year end and we are expecting to be right at about 100 of our budget just no more no less Sales taxes at 60.77 percent. This is also collected on a two month lag So we don't expect this to be quite at 75 percent. There will be an accrual at year end And also looking projecting out where we're going to be this one is also trending right about exactly where we think It is that um six million dollar mid-year change turned to be turned out to be Just about exactly what we needed to really meet our target Um uut is right on trend other taxes Even though that one looks low, it's actually coming in a bit high We collect the vlf swap and the same timing as our property taxes. So we're going to get a big significant amount in in april So in other taxes, we also have cannabis industry taxes. I mentioned and that one's coming in a little low So that one's been sort of up and down over the years and we don't think we're going to hit our mark on that one But we also have tot which is coming in high Thanks to the short-term rental fee that we've been seeing in the last few months That one is going to offset any losses in cannabis industry tax. So as a whole We do expect that other taxes category to exceed budget by the end of the year Um moving down to licenses and permits. This one is obviously already exceeded budget This is your building permit fees and encroachment permit fees which are coming in pretty high So we obviously will be seeing more of these in the coming months And same with charges for services. This one's coming in high as well. Thanks to We have building plan review fees and planning permit fees and engineering fees So it's really those pet revenues that are driving those two categories and bringing in our revenues above budget And our governmental is at 91 but we don't expect that to exceed budget That's a timing thing where we get payments early on in the year for our roseland and roseland payments and Pavement maintenance is the other one So then fines and forfeitures is one that we expect will not be it will not actually hit our budgeted amount This is mostly parking violation revenue and we don't see that quite being what we were hoping it to be So we might come up a few hundred thousand dollars short in that one And then finally transfers in these are predictable amounts that we know we expect to say 100 of these by the end of the year No more no less So let's go to the next slide, please So this kind of summarizes the projections of what we were just discussing So property tax sales tax and new ut We don't expect to be over or under budget just right about on target Other taxes we think we're going to come in just a little bit ahead of budget Thanks to tot coming in high but cannabis coming in low Licenses and permits and charges for services are mainly driven by pet revenues, which are going to be exceeding budget And then finally fines and forfeitures is going to be coming in low So overall we're looking at about 2.6 million dollars ahead of budget for our year-end projection And yeah, any sorry you're you're muted muted. Sorry. I'm going to interrupt you just for a second Mr. Schwedhelm, if you have any questions as we go along I'm a big fan of doing it as we go Given the nature of this information gathering So if you if you see something that that you want to question on any one one of these slides just you know jump to it You're timing John. Thank you Veronica for this information. So we had been talking about it I know this is only third quarter, but let's say this is fourth quarter. We had that number so without 2.6 million be Then up to council. Where do we want to distribute that extra revenue into which bucket whether it's pay down or purrs unfunded liability We talked about infrastructure. We talked about vehicles. Is this the figure that if again, it was fourth quarter we'd be discussing Unfortunately, no. So this shows us coming in ahead of budget for revenue We'll put this together with expenditures and a few slides ahead of the game. So We did even with revenue budgets being what they are we were did pass a deficit So, you know, we're looking better than a deficit, but we aren't quite two and a half million dollars in the black yet so Okay, just one half of the equation. But yeah, we'll we'll see that in a couple coming slides I'm taking the rosy half optimistic cap. Thanks. Thanks, Tom Are there any other questions on revenue before we move into expenditures? I think we're good Okay, okay. So the next slide and next slide, please So general fund expenditures another pie chart to give you a visual The general fund as we know is very people heavy. We have police. We have fire. We have administration So this pie chart shows that blue wedge and the orange wedge are all salaries and benefits They equal about 79 of our total general fund budget Services and supplies this covers anything from overhead to professional services, which is about 38.7 million and then we have a tiny little sliver of capital outlay that we adopt with our annual budget So when we talk about an annual budget and we are looking at our year-to-date spending It's it kind of varies for how we approach services and supplies and salaries and benefits As you know, we adopt a budget in June and we start spending our expenditures in July And we want to get as close to our adopted expenditures as we can without exceeding them If we exceed budget, we have to come back to council and appropriate more, which we don't want to do So by design this adopted budget will have turned back. It's just how it works Um services and supplies if we were to show you year-to-date spending It doesn't mean a whole lot at this point because we know that come June departments will do everything they can to spend what they have they will encumber they will You know go out and buy what they can they will roll contracts over So what we do is we assume that at year end about 98 of all those services and supplies and capital outlay will be expended Salaries and benefits which are obviously the majority of the general fund budget here are a little more easy to predict because we have a payroll schedule And since that's the largest chunk of what we're looking at we can dive into that a little deeper So we could move the next slide, please So salaries and benefits for fiscal year 21 22 We did come and appropriate an additional 7.7 million in salaries and benefits back in February and that was due to our labor negotiations There was a signing bonus and there were colas And we also appropriated about one and a half million for fires overtime budget, which we felt was grossly unbudgeted so When we consider that there is actually still One more cost of living increase that has to take place towards the end of the year So as of March 31st, we have not even seen all of our cost of living adjustments There was one more that was going to take place in April So we had to factor that into our projections of where we think salaries and benefits may land So the other final consideration is that we do budget a vacancy credit When we do our budgeting we budget every position For their full salaries and full benefits, but we know it's impossible to have every position always filled So we've always put about 1.5 million of a negative amount in our budget to offset those Or to account for those vacancies This year, we know that that's not enough Recruitments and hiring has been a very challenging Thing for all departments across the board. So we just know that We're going to see more turn back than one and a half million for vacancies Veronica on those positions Do you do it at top step or entry level step? So when we budget positions anything that is filled we budgeted at what they are what level they're at plus There's a step built in for if they're due for a merit increase or if they're due for a cost of living increase So it's pretty accurate for anything that's vacant We budget I believe if it's a range position, but it doesn't have actual steps We budgeted at the low range assuming that if we were to bring someone in they'd be at the low end But if it's a step position, we do it up the mid step Great. Thank you Or the could you go back to the prior slide just for a second? Yeah Good for me. Um, so on the services and supplies, you know What what you mentioned was there there tends to be near the end of the the budget period a fair amount of purchasing etc For these services and supplies, you know So that the community understands that this is not just wasteful spending could you explain how they what the How the departments decide on what how to Expend the unused budget near the end of the year Sure, so if We're approaching the end of the year for example in our budget season right now We're constantly hearing from departments things they need that if it's anything that's one time in nature We encourage them to look at their services and supplies budget for the current year And estimate are you going to have unspent appropriations try to purchase it now anything that you might need For the next fiscal year anything that maybe you needed for this year, but you couldn't get to it's yeah, it's certainly not Just spending with you know just spending just to spend but Yeah, they are looking at things to encumber that they can put into contracts or professional services are really one of the larger items Professional and outside services that have contracts in place that if we budget a certain amount in this year And we need them to encumber that amount before the year rolls over so a lot of that goes into contracts I appreciate that it's it's almost kind of a cleanup of expenses Near the end of the year and it's important for the community to know that because it's there's there are Those that feel that but just just get used up because they need to be used up and in our case We try to be very very careful and in in those expenditures and make sure that they're that they are reasonable and affordable and so that's absolutely that's why I asked the question I appreciate the clarification and I know some organizations operate on a A system where your budget one year equals what you spent the previous year We don't do that. So it's not the type of thing where Spend to inflate your budget so that we can match it for the next year It's just you know, you will get the same amount, but we do look back to see what's reasonable for sure I appreciate that. Thank you So we're on slide 10. Yeah, we can move on to the next slide. Thank you So this is projecting out our salary and benefits expenditures for the rest of the year The blue wedge shows our year-to-date expenditures of 105 million The orange wedge shows what we expect is going to be spent in q4 of about 38 million And then we think we're gonna come on under budget at about 4.3 million by the end of the year And this will be our salaries and benefits turn back So what might affect this would be any retirements? Sometimes we have retirements within the general fund that have significant payouts of vacation time If we have somebody that's been with the city for years and years If recruitments were suddenly to take a great turn and all of our vacancies were filled That might eat into this turn back a bit as well And then finally towards the end of the year we do see what we call salary savings budget revisions This is at the city manager's discretion and we don't see a lot of it But sometimes if the department has salary and benefits turn back They might ask the city manager for permission to use some of these unspent appropriations To hire a contractor to do this role if they're having difficulty recruiting or to Put those expenditures towards recruitment or advertising to fill that position So that's something else that might affect this 4.3 million dollar figure But I mean at the end of the day all things considered that 4.3 million dollar figure is not going to differ wildly It's not going to be half that it's not going to be double that it's going to be somewhere in that ballpark I'm going to go to the next slide So putting everything together for a year-end projection for June 30th, 2022 We're looking at recurring revenues and transfers in of about 188 million Are operating expenditures and transfers out of about 187 million And we're looking at a total surplus of about 750 000 So this isn't huge, but considering that we passed an operating deficit of about 8 million dollars. We're doing pretty good So it's it's a better view So we do expect as we discussed before to hit 100 of transfers in and transfers out Revenues are coming in ahead of schedule, which is closing that deficit Expenditures returning back more salaries and benefits than anticipated. So that's helping that deficit out as well And that's it for my third quarter update. So if anyone else has any questions I'm happy to answer it before I turn it over to Alan to talk about parking Thanks Veronica. Tom any questions at this point? Yeah, I do have one I I know talking about the recruitment challenge and I'm seeing what is going on in a variety of different job functions Where they're actually doing uh sign on bonuses and things like that If the city were to go into that direction to try to recruit additional staff Is does that require council uh feedback or interaction or is that at a staff level decision? I believe as long as we would have the budget for it It would be a staff level decision if we you know, we obviously we have unspent appropriations and salaries and benefits So that would be a totally appropriate use to be able to say we didn't spend x amount during the year Can we use this as a signing bonus if it becomes something that's more Structured into our annual budget going forward. We would definitely need to take that into consideration with building our annual budget And that would be something council would be a part of Yeah, and that's what I would I would hope that You know, the staff are the ones closest to this and there are some And I just know from a police department perspective where they used to attract 500 applicants I think this last one they got 88, you know, and it's like and if other Agencies are doing that. I'm guessing Departments are looking at other strategies to try to fill some of those vacancies. So thank you for that. Yeah, no problem Thanks, Veronica. Good presentation I'm going to move to public comment. Um, so Madam secretary, do you need to reiterate the instructions for the community if they want to weigh in on on 4.1 Hey, John, we may want to wait until I think we have like two or three more slides just on the parking side Oh, I'm sorry. Yeah, and we can catch all those and that way we can have comments for all of them should be Sounds good. I appreciate that. Thank you Let's see here. So, um, what I wanted to do is well, uh, yeah, what I wanted to do is to provide Just a quick update through the third quarter Where we are with the parking enterprise. It's something that we're You know, we're challenged there right now in that we have Had lower revenues We've over the last couple of years as a result of not only COVID impacting The the fund itself With less people in the downtown Parking so less revenue coming in We've also We were trying to help out the businesses in the downtown by waiving a number of fees So over the last Definitely last year and and into this year. We are running deficits that has an impact on the fund So what I wanted to do was to give a an overview here Uh, this will also be part of the discussion we'll have on In may 10th at the uh, at the budget study session Uh, it's parking as a part of of finance. I'll I'll be talking about this then So I wanted to give a an update here to this committee as Prior to that so next slide, please So, uh, just hit right into the nitty gritty here This is uh, this is the fund forecast Uh, that we've started developing for Uh for this and I'll I'll give you Uh, it's it's very high level, but I'll I'll talk about some of the assumptions that we have so Uh, the first two columns. This is the the current year adopted budget and the Uh, and then the proposed budget for fiscal year 22 23 As you can see in both years we do we are running a deficit And then going into the forecast years Oh, I should take a step back. So this is the operating revenues that we have in there are are Include the fee waivers that that we have in place. So, uh, at least for fiscal year 21 22, however for 22 23 We are The the fee waivers go away at the end of Of june. We are not proposing to extend those So we built back in some of the revenue that we know we can count on coming back And that typically have to do with garage revenue attended garage. So basically pulling The parking tickets or to go into the garages One of the things that we are doing though is we are working with with the dao and they have mentioned that ways that we can try to Encourage more parking for the garages And one of the ways that we could do that would be to be consistent Through all of our different garages, especially as it relates to the first hour free. So right now two of our garages Offer first hour free And that was pre-covid So going post coded what we are proposing to do Is to have all of our garages First hour free that will provide the businesses And and the dao themselves Uh some consistency and permanence so that they can have that as a part of their advertising and bringing people in Here are some places apart their first hour free Our hope is is that while that hurts us a little bit in revenue Hopefully we'll be able to get more Uh a revenue as a result of it and and right now at this point We uh, we want to try whatever we can in order to Help the businesses downtown, but also to hopefully spur parking usage And and generate that revenue the $200,000 of non-operating revenue that is made up of of interest and Because it's an enterprise fund the investment Of that fund it's it's within there. It's part of our overall portfolio But there is allocated revenue that comes from interest and gain and loss on on investment That amount wildly goes up and down from year to year. It's very difficult to predict It's not something that I would use as a basis on which to build a budget However, it is revenue that comes in and based off of past revenue amounts From that $200,000 seems to be a reasonable club to have in there. So that's just plugged throughout the the the forecast And then our transfers in this is really the money that's coming in from the general fund that helps pay for the parking enforcement operation and on the general fund actually receives all of the parking fine revenue But in turn it pays the parking fund to actually do that enforcement For operating expenditures, this is salary benefits and And services and supplies The increase from fiscal year 21 22 to 22 23 is largely a result of the mou increases that were that were passed so it's the uh So that's what what what those? are Our transfers out is for That's largely to go to the dao as part of of the parking part of Of that business assessment district So with that if you add all those up We get to a deficit and then below the line I put our projects Which are both our o&m and cip projects are They're they're really there's not a lot of distinction between the two those projects are mainly to to do maintenance on our garage and slots parking meters To to that We do have a asset management plan. We try to Budget for that when when available And that is what you're seeing there. So this is uh, it's pursuant to that to that plan And then whatever the updated numbers are for that And then i'll talk a little bit more about that going forward in and where we are from strategy sampling so We are anticipating ending the year fiscal year 22 at 5.9 million dollars of reserves uh, and And then drawing down on those reserves again for the 22 23 budget Going into the forecast the 4.8 million dollars of revenue What I did was I went back to five years of of pre-covid Revenue took an average of that We've done a lot of different things over that time In in some some years we expanded our parking hours. We reduced those we've kind of Done a number of different things. So I just basically took an average and sort of Took away the high ends and the low ends and it gives us Looking for a target from which we can hopefully Uh, you know gauge where we need to be in order to be able to operate in the fund again, we have the same plug for the The non-returning revenue and then the transfers in And the transfers in because they are tied to staff largely, uh, I put the same uh Benefit and salary assumptions that we would have for our operating expenses into that because I figure it's about a one for one. So I wanted to make sure that I covered that in that For operating expenditures, we do know that there's going to be a COLA increase in fiscal year 23 24. So that's included in there plus we have increases for Purrs and other benefit costs that are that are put in there And uh in these mirror what our long-range Financial forecasts that we're doing for the general fund. So what I tried to do was take what we're doing for the general fund And mirror that for this because the overlying assumptions are the same Especially for the known cost that we have and so those costs are are escalated as we go through the the four paths Uh transfers out I I remain I I left that constant. I I figure that it's going to be around 120 121 thousand that's that's about what it's been in the past Uh for uh to send money to the gao. So I figured out the pretty constant And what we get is we were able to operate Uh from just a pure operating stand stand for for a few years assuming that we are meeting our uh the revenue amounts And uh, we could continue to go but it does go on a downhill basis. So We're really looking at that 25 26 year where we get pretty close to the bottom And in terms of projects Um What we're doing now at the staff level is to try to identify within our asset management plan what we can push off Or or really what's critical If we have to do something right now Then then you know, we can do it but what it's going to do it's going to impact our bottom line Uh of our reserves. So ideally I think From 23 24 and going on while I'm showing project amounts here Most likely what I'm going to need to do Is push off anything non essential to out years Um and in order to Uh maintain reserves because we're at the point where our reserves are just Going off a cliff and I can't afford to do projects So it will also probably require us to go out and and and Do some structural analyses of our especially of our garages To make sure that we aren't deferring anything that is more of a health safety issue We want to make sure that those we do and we find money to do that but overall What we have that i'm not really You know, we're still trying to formulate at the staff level Where we go with this because We're we're headed in a bad area. We're hoping that that revenues will will We'll go up to a point where it not only supports operations but also supports doing projects I am looking uh at the potential of of uh financing projects to you know preserve cash And be able to get our projects done if we can afford to do that We'll have to look at creative ways of Of coming up to adding new revenues These are all things that we're looking at In order to Try to maintain the operation Uh, and then I I assume at some point Uh, we'll come back to the council or probably this committee Uh As well before going to council And talk about really what our long-term strategic options are For the enterprise but right now Um, we've taken a hit over the last couple of years it reserves Uh, we're hoping that that that, uh With things opening back up that revenues will come back But i'm really worried that that even if they come back to average that it's not Uh enough to sustain operations in the long term without either increasing revenues or Uh decreasing expenditures or a combination of the two Uh next slide please Alan before we go to the next one. I just had a quick question Transfers out you said to the dao Is that different than the funding that that I believe the city provides to the chamber for Doing managing events in the square. What what's that 121 k go? So there is, um, I think there's a couple of different things to play There is some stuff that goes to the to the chamber, but there is a, uh Uh, there is a a benefit district that the downtown part of the general fund does pay money into that This is specifically the parking funds Uh contribution to that and it goes for uh, I do think that it does Pay for some of the things going on in the stairs in the square, but it's also for Uh general beautification and and there's maintenance work that's done in there And so it's it's all that but what you're seeing is the specific bill that is tied to parking because Of of our presence in the downtown. Great. Thanks for that clarification Alan before you go to the next slide. Um, I'm curious This is maybe a slightly off off point, but are we promoting are we well promoting? The one hour free or do you have because as far as I know you have to get right up to the ticket spitter And then it It's it tells you that you're going to have one hour free I may be totally off base with that that may just be a memory that I have but Um, if we're going to be offering it and we could use if it just takes a fair amount of some some paint in uh in a fairly high point size Saying one hour free now admittedly it goes it goes against The generation of of resources But if we're going to offer it we should promote it. So I'm wondering if to your knowledge is that in the plan So it will be in the plan and we have talked with uh with cadence Uh at the dao about specifically that And so what we've committed to is to working with them to try to figure out ways To not only better promote the parking that's there and some of this doing one hour free would be part of that um But also the to to any anything else that we can do Relative not only the businesses and the events but also the parking options that are there. So I imagine that we'll be working with brahisa on that as well and uh, but definitely we we Both Chad headway who's the the new Chad head speaking who's the new parking manager We've both met with cadence and uh committed that are Working with them to try to find Creative solutions to make all of this work together. And so that's that's kind of where we are And and we talked specifically about advertising. So we will we are working on that I appreciate that and it's it's that's good news. Thank you Welcome So yeah next slide please So this just kind of tells you where we are with the reserves You saw that on the forecast slide, but this just gives your standard thing. I do want to point out one one item So there was the sale of lot two which is about 1.3 million dollars which uh ordinarily would go into the reserves and it is in there right now We have received those funds and they are in the reserves However, I I I think and and I apologize, but I I need to work a little closer with our attorney's office on Exactly how that that sale agreement was structured In that there may be something that triggers us to need to use that money towards that lot should something happen there in the future so What i'm looking to do is kind of pulling that aside That that's money in there and hopefully that that that ends up Uh being a part of our reserves, but I can't spend it So, uh, I think I need to assign it in there just in case In case something gets triggered later where I need to do that towards lot two, but um Those are uh, those are things I need to I need to iron out with the attorney's office of exactly what Our liability is without Would you remind me of what lot two is is that that little one off of um east street? It's the one that's right across from macy's As I point and you don't know where I'm pointing, but It's over right across from the mall. Um, it is a small kind of But I think it uh, yeah just right across from macy's in the mall. That's that's how I best know it Okay, I just I'm just curious because I don't I don't know them by number. I know the I know them by street Yeah, and I think I And I think I I have the wrong I I can't even recall the street that's Not a problem. I'll I'm sure I I'm sure I've seen it. Thank you Yeah, you talking the raw street lot Alan. I think yep, that's it raw I I oh, I didn't have the confidence to pull the trigger on that one. I'm here to help Yeah, I wasn't go I wasn't finding it. So yeah, I appreciate that. Thank thanks Tom and and before we Go to public comment. There is one thing I do want to kind of add on to what what Veronica talked about and Tom your question about the year end And what surplus so yes Anything that we would have in the general fund that that in that surplus mode that Uh, uh, those are true one-time items that could be used to for true one-time project Um, we will know that more towards the end of Uh, September, October So the idea is that that's when we would come back and say here's the amount that we have to work with And whether it goes into buckets or whether it goes into a specific thing and I can talk a little bit more about The bucket issue is on the next agenda item, but um, we're but that that's that's kind of the rough timeline of where we are with that Okay, and just with that, I know it's not on the agenda, but Do we have the 115 trust or do you we still need to get Talk about it right right right after this. Okay. Thanks So with that, uh, if you have any other questions that that That ends our tag team report Thanks, Alan. So I'm not seeing any other questions popping up with the um Those on On the screen it madam secretary. Do we have any comments from the from the public on this item? No emails were received Thank you very much and no and no raised hands There are no raised hands. Okay. Thank you very much. Let's let's we'll just go ahead and move on then Alan and just for a little housekeeping, um, I have a hard stop pretty much at 545 so, um, you're you're gonna you're gonna absolutely need that Excellent, thank you very much. Just want to give you a heads up. Thank you. Uh, so the the next item on the agenda Um, is an update on where we are with the fiscal policy so, uh on may 10th we will have an item at council to adopt the section 115 trust and include initial deposits into that trust And what I can give you at a very high level. So we're looking at Uh, we're we're actually going to do two trust accounts So one for the city general fund pension and one for Santa Rosa water pension costs So we talked with them. We Gave an overview to the their the bpu's budget committee for budget The full bpu and study sessions. So they're aware of moving forward. Uh, we plan on doing an initial deposit of 10 million dollars of the fiscal Stability general fund Funds held in reserve And then Water is doing 4.4 million out of their reserves that'll go in in Beginning in fiscal year Uh 24 25 We will our our Existing pension obligation bonds will be retired And so we are going to redirect the funds that we would spend annually towards That debt service To contribute to the fund So what that means is that on the general fund side is about 2.6 million dollars On the water fund side. I think it's about 700,000 So what you will have in doing that Is that we'll have an initial deposit and then an ongoing contribution With absolutely no increase to the budget and you'll be able to Start building the funds up there. We believe that by by going at that clip um Probably around 10 years. We should hit our goal of On the on the general fund side of About three point or 34 million dollars Which is uh is a Right now Right now a high year Year payment of not only our ual, but also our normal cop So that's that's the total purse Thing there. So that was our initial goal is to hit that and then Uh based on the analysis that that we've done that right around that same time period We're going to be inching pretty close to 100 funded status That that'll be Looking at we'll have to do an actuarial evaluation of the section 115 but with that in conjunction with the our normal cal purse account we should be Uh very closed if not at that 100 funded. So we're getting that was our next goal and then The the idea is to continue through that process to continue funding it and to get to where uh That actually becomes a true pension stabilization fund um That that will allow us to see uh increases going out in the future to be able to use those resources to pay cal purse and uh and not adversely affect the general fund and the same would be the case with water and uh And we'll just continue chipping away at that ual uh And there we go So that's coming. That's exciting. That'll be there on may 10th as a report item. Uh, it will go there and we'll also have Uh, uh, somebody from pfm who's going to be running the trust. They will be there in case calpher has any questions from them The next thing that we talked about was the capital replacement items and Specifically as they related to the fire department because that was the largest Chump that we had to deal with Uh, the the majority of the in fact None of the fire vehicles the large apparatus they had was in the capital replacement fund So we have figured out a way budgetarily to handle that So again, we we do need to use some of the fiscal stability funds about 3.3 million dollars And uh, we'll we'll have to have an item I I think we're Veronica's and I are still talking on whether We can have that as called out separately But as part of the budget item going uh on june 21st Or if I need to do a a specific standalone staff report for that But um, the idea would be is that we will uh that catches up the fire department within the equipment replacement fund And then beginning in 23 24 So they'll be a part of that fund just like every other department that has equipment there it will it will mean a About a little over a million dollars of additional annual expense In the general fund at that but that is part of our long range forecast as we're going there So we've already included that as part of it and the nice thing about that is that it means that um That those two items We can handle budgetarily and not have to use the bucket of surplus funds And what's good about that is because the third item that we talked about was deferred maintenance And whether that is infrastructure for facilities or infrastructure in in the public And that is going to be a big nut to craft to be perfectly honest. So to be able to and I know that I have talked about getting policies for all three of those things going in in place by june 30th I am going to need to push that one off into the summer as we start going through and evaluating Uh, what could should be funded and prioritizing them from a health uh in safety standpoint to a uh critical need of a facility such as a craft down the middle of the public safety building or HVAC system replacement roofs all of that Uh, it's becoming a more daunting task than what I originally envisioned And we just simply at the staff level need more time to be able to to go through that That uh that evaluation process and find that at the same time Just as i'm working with uh our municipal advisors on what we can possibly do with uh infrastructure funding relative to the parking district and that we're also looking at what we can do in terms of infrastructure projects in general and how we can preserve cash by issuing debt We have a very clean debt sheet as it relates to especially the general fund and This may be the opportunity for us to be able to to do that. We know that we have a uh a fire station we need to build down As we relocate station eight We have those types of projects that we're out there and we need to figure out ways To fund those and move those forward while preserving cash so um And I think the two of those things are gonna they're going to intersect in some areas So we need a little bit more time to figure out where they do intersect And what makes sense to be to more cash fund And so that that's where we are with with all those those programs Tell them any questions Any questions just thank you. Alan. This is um music to my ears. You know, I like that. We actually we've identified a path moving forward to You know, right in our financial ship. So thank you so much for all your efforts on that. I'm really appreciative You're welcome took the words right out of my mouth. I I just you know at every opportunity into the future when when Identifying these strategies to future councils it's going to be really important to reiterate on our, you know on as often as necessary to um Make them understand the importance of following the strategies because they will pay off in the long run and those Obligations that we that we are under now Will ultimately if if they are if they hold strong to the strategies will fall away and it's just really um I'm so pleased to see these strategies that even even though that you're not complete with your Infrastructure that's that is a major piece of work. And I understand that and as as Tom and the rest of the council I'm sure as well. So, you know, keep up the good work. Um, it's I just really love seeing it in in print So at this point, um, madam secretary, do we have any comments from the public at all? in any type of device No, we do not All right, excellent. So, um That being said, I think, um, we are Pretty close to adjournment unless there's any other any other comments from you, Tom or or Alan Or Veronica If not, um, all right, thank you. And thank you, um, madam city manager for for listening in as well This is an important conversation. Look forward to the next meeting and thank you very much. Um, all involved and we will, um Until next time Thank you