City Council - workshop

It's 4 p.m. on September 1st, 2026. Let's start the IOC meeting. Hello, everyone. The first item is the USG update. Yes, again. Welcome. Yes. Hello, Eden. Hello, it's been a while. Summer. We successfully ran the Dongan Scott student dormitory project.

We were able to provide a dormitory for about 40 students. We will continue to promote this project and expand it in the future. In addition, a loan guide will be released, but we changed the name to Rate My Land Road. I hope more people will participate. In addition, we not only provide statistics, but also organize them by house owner so that students can find information more easily. And we will cooperate with the university to hold a weekly church housing event. It will be held on October 21. Then more students will be able to rent responsibly, and one of our sustainability directors is working on creating a bus stop in Iowa City that is more sustainable. During the summer, there were a lot more plans, but I only told you what was going on in the city. If you want to know more details, please let me know anytime. I'll do that later. And today, the USG, the U.S. Congress, rescheduled again, so please look forward to it. We're also working on selecting new senators. Thank you. Yes, thank you. Welcome back. The second case is an explanation of the will.

Since there is no special question, we will move on to the third case information data. We will start with the data on August 29th. And there is also a data on August 27th. View. I received an IP6 memo from the secretary-general. There is a meeting schedule proposal for us. Well, I don't think there's a problem or a problem that stands out right now. Depending on how the special budget meeting schedule is set, it becomes difficult to confirm the lecture schedule for the next semester. It's usually confirmed in September or October. So, as of now, it's not a situation where I can ask for a schedule adjustment, but I wanted to let you know in advance that there may be variables that I can't control as the schedule gets closer. Of course, you can definitely know a few months ago. And I saw a large-scale budget meeting being discussed on the day of January on several Saturdays, and I think it would be good for that long day not to overlap on Saturday. I know that it is difficult for staff to have a meeting on Saturday, but I think it is necessary and it will be a good opportunity for me to avoid various schedule conflicts.

By the way, it seems to be considering the dates between 23rd Saturday and 30th Saturday. Oh, it wasn't 23rd Saturday.

If you're okay with it, I'd like it to be 23rd or 30th. It would be nice if it was two Saturdays. How about other days in between? Yes, I'm sorry. I misunderstood. Yes, the most important budget-related meeting is Saturday. Mr. Mayor, we saw that the document house on August 29th was mentioned. We made a mistake. It had to be on August 20th. Is there anyone who wants to discuss the case at the document house on August 20th? Yes, there is. Is there anything that has been discussed? Yes. 토요일이 좋을 것 같습니다. 제가 참석할 수 없다는 뜻은 아닙니다. 예산 관련 회의를 평일에 진행할 수 있다면 고려해 보겠습니다. On Saturday, of course, you can attend and the staff can be with you, but I would like to have a chance to have a meeting on weekdays. Yes, if I don't go on a business trip, I can be willing to participate in all the schedules you mentioned above. But I don't think I'll be able to know the exact schedule for the next month or two. I'm the same. Maybe you're in the same situation. All right. Can we decide on Saturday? Or you can set a Saturday and make a reservation for Monday. First, set both dates and look at the situation. I think it will help the employees. Especially on Saturdays, there are many people who have business trips or other schedules. It would be better to set a preferred Saturday in advance. I suggest January 23rd or January 30th.

I'm okay with January 30th. Yes, I'm okay.

I can do it on Saturday or Monday. Monday is a little harder, but I think I can do it anyway because I have enough time. There's no day that I prefer between the 23rd and the 30th. Me too. If you know the calculation process and can start a little earlier, if the date is not set, I think the 23rd will be a little better, but it's okay one day. Yes, it's okay one day. Please get it right somehow.

I can't do it on the 23rd. You can't do it on the 23rd? Okay, then.

What about the 30th?

The 30th?

Yes, January 2nd. Then, do you make a reservation again on the 20th, 25th, Monday, and 30th, Saturday? That's what you think, right?

So in the end... Yes, it's okay. Then it's time for the 25th. Yes. Is there anyone else? Yes. I'll have to wait a little longer. Yes. Yes. I don't know. Let's plan for the 30th. Let's check it again around December. I'll ask if it's better to change it to the 25th. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. For those of you who haven't read it yet, let me explain. As the Act was amended, we are changing it according to the Act, which required a multidimensional solution for specific use changes. I think this is also in line with our strategic plan and the discussion on housing accessibility. However, you can decide on a simple multiple choice for the new rule, and you don't need a super multiple choice. Yes, that's right. It was 75%, but it's 60%. Six out of seven, right? Now all you have to do is agree on six out of seven? Yes, you just need to agree on a simple multiple choice according to the rule. Yes. In general, I don't like super multiple choices except for extremely rare exceptions. I think it's un-democratic for a minority to ignore the majority and make decisions. So I... I generally agree with your opinion. Oh, I'm sorry. Say it. Oh, I'm sorry. Um, I have something to ask you later. Do you have any recommendations on how to distinguish between various types of district settings? I think a lot of people here are empathizing with the housing problem. So, if you think about comparing the use changes for high density development and the use changes for industrial use, Um, yes. Because this is a regional regulation, we think we have a considerable amount of rights. Yes, if we want to deal with it differently. Another thing I want to say is that if you want to discuss and debate this topic more deeply, it would be good to have a workshop-like time. It was also in the meeting materials. So I think it's appropriate to raise this topic. If the seven members have to express their thoughts in seven different ways, I think the workshop would be the best. Yes, it's okay to discuss it later. I don't think it's urgent enough to put it in the next meeting. Yes, good. We'll discuss it at the next meeting. Good. Yes, we can prepare background information that will be helpful to the employees. For example, recent cases of forced voting. Please let me know if you have any other things that come to mind before the meeting is held. I will include it in the background information. Yes, that's good. Yes, that's good. Do you have any other questions? Yes, I'll tell you in 20 minutes.

It wasn't a 27-day meeting. Yes, it's a 27-day meeting now.

Yes. First, I will tell you about public housing.

Yes, there are still 1,355 people on the list of 8 major reporters in Section. However, there is a question about the 730 years of public housing. I may be confused, so please tell me again. We said that all public housing will already be provided to Section 8, that is, to those who have a voucher. What is the reason why there is still a public housing waiting list?

Mr. Trey, would you come over here? The question is about the list of public housing waiters.

I wonder how to select a public housing resident. I want to know how to select. As you know, remember that you applied for a public housing voucher. You said you could let people with vouchers move into public houses and continue to receive vouchers even after moving. Can you explain what that is again? There are currently public houses, but there has not been a change yet.

We did not submit a relocation application. So the public housing waiting list is operated as before. First, the person who submitted the application will move in according to the size of the bedroom. This method remains until the relocation is completed and the tenant protection voucher is received. It's not that stage yet. Yes, I haven't received a voucher yet. Yes, I thought so too. I thought I would have already received it. Why not yet? I wonder if this problem has been solved. It's a complicated process of relocation. I'm working with a consultant, but I have to get environmental impact assessment, I have to get emotional assessment, and I have to prepare various documents. So I'm going to apply for HOD Sanha Special Delivery Center SAC in November. We don't have a housing construction board, we have to pass the board of directors at the city council, and we have to hold a council of residents. There are many stages to go through. The last stage is to pass the board of directors, and then you can apply. You have to wait and see how long it takes to review and approve at HOD. For your information, this process is carried out in two stages. The first stage is to convert to a small-scale public housing. In other words, section 8 of the 44th generation. It is a plan to convert it into an affordable housing supply program and provide affordable housing to our non-profit organizations. Then, it will be less than 50 dollars to adjust the price to 75. In short, we will submit the second application letter to relocate the rest and sell 1,000 units. This will be carried out at this stage. It's not that stage yet, but we're working towards that goal. Yes, public housing will now be operated as usual. Yes, I got it. That's what I wanted. All right. Do you have any other opinions? Let's move on to the budget discussion and financial preparation policy review of the next year. Thank you for calling. Mr. Mayor, before I hand it over to Nicole, I'll start first.

We are holding a workshop to discuss the budget priority ranking that will come around this year. At the meeting, I talked about the uncertainty of the asset tax reform and what changes will be made in the future, and it must have sounded like repeating the same words for more than 10 years. But now the situation has changed. The asset tax reform plan was adopted in May this year. I will explain in detail the contents of the reform plan and the impact it has on financial prospects, but I would like to add a few basic things before the discussion. To put it simply, we will not be able to maintain the organizational management that we have built over decades with the new government. Therefore, all programs and services supported by the general fund will not be sustainable in the same way as they are now. Nicole will explain the reason in detail. Calculation is not that difficult. Therefore, the key is not whether it will affect us, but how quickly it will affect us. And I would like to tell you a few important things when considering the change and its adaptation. First, we must continue to keep financial stability at the top. This reform bill does not need to damage our financial stability and should not be damaged. We must continue the tradition of a financially stable organization to protect the next generation of IOs and citizens. Second, I do not see this as a crisis. This is largely due to our financial stability. I think this is the task of strategic planning. In the future, we will have to make a lot of difficult decisions when it comes to prioritizing the priority of external investment in market services and local communities. We need to focus on strategic planning to prioritize what we need to preserve, strengthen, and protect in the future. The last thing I want to say is that this budget problem may be different from the other budget problems we faced in the past or the problems you experienced in other organizations. It's not a time-limited problem like the economic downturn or the pandemic. It's not a reasonable reason to say that the economic downturn or the pandemic will change the situation like the high inflation period. In other words, they're going to go back to a kind of average state. But that's not what we're seeing here. We're looking at a structural change in local government finances. So this is a transition period that we need to take care of. This will change the shape of the local government, and there is no hope that it will return to the state it has been for decades. Therefore, if we accept this challenge as it is, we will be able to maintain our strong position. We can still provide quality service as an organization with high performance. However, As long as it maintains the current situation and responds manually every year, financial stability will be weakened. And, The various services currently provided will not meet expectations in all areas. Therefore, this will be a long journey. Once again, this is not a crisis. This is not a difficult decision that must be made within 6 to 12 months. But we have to start this journey now. And The reason we're here tonight is education. It's important for all of you to understand what this means, at least for now. As Nicole said, there are many processes and variables. But once you understand this, I think you'll be able to recognize the challenge. Then I'll hand over the microphone to Nicole, who will present today.

Hello, Mr. and Mrs. Mayor. Today's presentation contains a lot of content. It's divided into four parts. If you have any questions between each part, please let me know anytime. If you have any questions in the middle of the presentation, please let me know. The content is vast. Well, it contains a lot of technical content, but let's take a brief look at the impact of the current tax rate phenomenon and the main content and budget of the new tax law. Next, we will discuss the 10-year outlook for the general fund, the way to ease financial burden, and the 10-year outlook for the transportation fund. Lastly, I would like to talk about the general fund balance and settlement policy. First, let's take a look at the income tax for the current fiscal year, the fiscal year of 2027, and the tax surcharge for each item. As you may have heard a lot, the property tax accounts for 70% of the income and interest of the general fund, and the interest rate accounts for 70-76% of the general fund. In other words, the dependence on the property tax and the interest rate is very high. Therefore, It will have a significant impact on the general fund tax and transportation tax as the property tax law is implemented. There will be the biggest change in this area, and the flexibility in the budget operation will be greatly reduced. First of all, as I said, the general fund tax is affected. In the case of the fiscal year of 2028 and the fiscal year of 2029, the upper limit is set to 102% of the previous year's income, except for the new construction evaluation. The important thing here is that if the housing evaluation is changed due to re-evaluation, it is not included. This applies only to newly built buildings or newly built buildings that have been approved by the housing authority. It does not simply include the increase in evaluation. And since the year 2030, the amount of 102% or less than 810% of the previous year's evaluation will be determined. I don't expect 812 to be a problem for us. In the year 2030, it is expected to maintain a much lower level than that, and it does not seem to go back up to 813. Also, this new building evaluation is not reflected in the TIF, tax-added finance, or the companies that are delayed in the tax aspect. For example, if there is a real estate that receives a tax cut and the new building evaluation is 10 million dollars, and only 75% of it is cut, that 75% is not included in the new evaluation and is accumulated in the existing evaluation. Therefore, the general tax will not be able to receive an additional amount for the new rate. Is it always like that?

There is no time limit, is it always like that? Yes, that will never happen. With the new rate.

All right. The traffic tax is much more strictly limited.

There is a limit of 102% and no new rate is excluded. So there is a 2% limit. It can only increase that much. Also, let me tell you about the fund-raising policy that applies from the annual budget of 2028. The fund-raising policy cannot exceed 35% of the party's annual budget. However, the AAA rating city is an exception. Therefore, an exception is applied in the year of 2028, which maintains the current rating. Now let's look at the calculation process. This is the fun part. On the left, there is the 2027 fiscal year figure. It has been halved, but this is the current year's overtax rate and the current tax surcharge rate, and this has also been halved to the second place. So, if you divide the overtax rate into 1,000 and multiply the surcharge rate, you get the tax revenue. This is the general tax revenue and public transportation tax revenue of the 2027 fiscal year. Now, if we move on to the year of 2028, the evaluation will be divided into two parts. The existing evaluation is based on the year of 2027, but it will change because the rollback and rollback are changed. Generally, in a year without evaluation adjustment, it increases by about 2%. Therefore, the number will be changed. Again, this is not referred to as a new evaluation, but a change in the rollback. And there will be a part where a new evaluation will be reflected. Therefore, the total rating increase rate will be about 3.5% to 3.52%. Of course, this is not a guess, but a rough estimate. The exact rating for the year of 2028 has not been confirmed yet. I don't think we'll be able to get that number by the beginning of January. Therefore, in order to check the final number of the year of 2028, we have to wait a few more months, but we will estimate the expected situation based on the information known so far. In the case of a general property tax, this amount is 102% and the upper limit is set. In other words, 102% of this amount. You don't need to calculate, but you do need to. This is because you have to divide this evaluation by 1000 and multiply the tax rate. The tax rate is 818, and if you multiply it by half, it is 818. Therefore, the new tax rate is 818. If you divide the new rating by 1,000 and multiply the tax rate, 290 will come out. The total property tax is $ 30,980, and the tax rate is about 2.75%. As you can see, we are looking at a loss of about 0.75%. As I said, the public transportation tax is much more serious, but the total tax is limited to 101 and it does not receive any benefits according to the new evaluation tax. Likewise, you have to calculate the rate at which you can get the maximum amount based on the total evaluation tax, but if this rate is lowered, it is actually about 0.93, but it is a half-raised value. 1.99 is a half-raised error and should actually be 2%. It's about the increase in public transportation tax. Do you understand? All right. Now let's move on to other property tax-related laws. The multi-generation housing evaluation was a bit confusing. Before the 2013 bill, the interest rate of 100% of multi-generation homes was applied. After the 2013 bill, the interest rate of general homes began to drop gradually. Currently, multi-generation homes are receiving 44% of tax-advantaged benefits, just like single-family homes. However, when a new bill is passed, the tax-advantaged rate of 3% of single-family homes will be applied in the year of 2028, and 6% will be added from the year of 2029. The problem is that this exemption rate is fixed at 102%. Because a new evaluation method is not applied, it simply increases the tax burden. For multi-generation homes, more tax burden is removed, and for single-family homes, tax burden is reduced, but there is no benefit to general tax or transportation tax. The same is true for housing owners' tax and exemption benefits. Currently, as of the end of the year 2027, The $4,850 tax credit, which the main government burdened, is now gone. The amount of about $840,000 was burdened by the main government. Yes, they are going to completely eliminate the tax credit for home ownership and create a new home ownership tax-free system, which will cover 10% of the value of the tax. At least $5,500 to up to $20,000. This will bring about $2.5 million in tax-free effect. And from the year 2029, the amount will be adjusted every year according to the consumer price index, CPI, that is, inflation. Therefore, the only item that increases according to the CPI in this law is the exemption amount. There is also a tax pension system for commercial and industrial sectors. This system was implemented in two versions. One was about 1.5 million dollars in size, which was implemented according to the law changed from 100% to 90% of the tax rate in the industry and industrial sector in 2013. However, since 2023, the main government has gradually abolished the system. Therefore, the year of the 2026 resolution was the last year to receive tax refunds. And in the 22nd bill, for commercial and industrial real estate, the first $150,000 was changed to be taxed according to the fall in real estate value. So I was trying to complement that part. But that part is gone, which is about $750,000. Now then, I will explain in more detail what is related to the tax on home ownership. I'm sorry, but...

It is difficult to understand exactly what the tax on home ownership is and what it means. Is there anyone who does not receive taxes at all if they receive $ 20,000 in the Constitution of 2022? Is it before the price drop? Or after the price drop?

After the price drop and 10% interest rate. It's $20,000.

Yes, sir. I don't think that's the case.

I'm sorry. Now I understand my misunderstanding.

I was thinking about the tax rate. No, I'm sorry. The tax rate is not the actual tax rate. Yes. And you'll be able to understand that better in the next example. Oh, I'm sorry. It's okay.

This year's house tax return method is the same as the following. The tax calculation method that will be paid in September and March is this. First, calculate the evaluation amount. For example, if it is $300,000, the rollback is halved here and multiplied by 45. Then the tax evaluation amount will be $130,000. If you multiply the tax rate of the city by this amount and divide it by 1,000, you will get a total tax that should be paid in the city. It's a little over $2,000. Then, we subtract the rent from the owner of the house, which is 4,850 divided by 1,000 and multiplied by the rent, which is about $75. Therefore, the resident pays $2,008 and receives $2,083 because he or she preserves the rent from the owner. Would you like to go back to the previous slide? Yes, please.

No, just one more. Right here.

Here's the next slide. I'm sorry. Here.

So that we can compare them side by side. Yes, this is the current situation. Again, it is still the same method even after the asset tax reform. This is the method of multiplying the tax return on the assessment. The tax return on the assessment method does not change. In other words, the tax assessment is $135. Here's the difference. Housing owner exemption is 10% of the tax assessment. So it's $13.5. The tax assessment changes to $12.15. If the tax rate is multiplied by the interest rate of $12.15 and divided by 1000, the final tax rate will be $18.75. In other words, about $134 is reduced. This is the amount that the residents pay for the tax return. If you compare the amount that was paid in the city before and the amount that is paid now, there is a difference of about $200. There are 11,200 households in our city. Therefore, if you multiply $200 in this amount, the tax return effect of a total of $2.5 million appears. While calculating, I will explain in more detail.

From now on, the interest rate will be lowered due to the upper line explained in the slide at the front of the recall. So, this is not the only difference in the first quarter, but the gap between the taxes paid by taxpayers and the current system will be greater and greater as interest rates are forced to drop for a few years in the future.

Yes, there will definitely be a return on interest. Then, before looking at the general financial prospects, do you have any questions about the bill itself? Yes, as Jeff said, many processes have been used to create a 10-year prospect for the future. What will happen in the next 10 years? I won't explain one by one, but if you look at the numbers, I think I can explain it more easily. However, I added a slide in preparation for you to re-watch the presentation later. These are new approaches. We'll take a closer look in a moment. The most important thing to look at in a moment is that the income of the property tax is steadily increasing. This is the core of this prediction. Unfortunately, it doesn't make sense to use any process because of the 2% upper limit line. The key is how much new evaluation is generated, and the only way to grow more than 2% is through that new evaluation. To explain in more detail, if you look at the new construction evaluation for the past 10 years, the 10-year average is about 60.4 million dollars. The 5-year average is about 46.6 million dollars. You will see in a moment, but to balance in 2036, you need an average of about $150 million. And secondly, these numbers are the numbers before considering the benefits of the TIF, tax credit, finance, and tax. If these benefits are applied, the numbers will decrease, but we do not know the exact size yet. One more thing I want to clarify. In the annual budget announcement, the architect shows the evaluation amount,

It's about $150 million to $200 million on average. The really important difference here is that this is an overtax rate. When comparing two similar charts, it's not just an issued construction cost, but an overtax rate. Recall. This clearly means that urban construction and growth are increasing tremendously.

You said you could balance the budget in 2036, but did you consider that the cost of service will increase as the city becomes much larger? No, let me tell you right away. This is based on the budget for 2036. As a result, the expenditure will increase and the budget balance will not match.

Oh, I'm sorry. Then, based on the actual numbers of 2025, I will show you a new year's prediction. These 26 predictions are expected to be quite close to the actual numbers. It's not the final number yet. And then, if you start long-term predictions, you can see that there is a gap. We predicted 10 years, but we didn't want to put all the 15-year numbers in. I thought there were too many numbers on the table. So, in order to meet the 10-year period, there is a part that goes directly from 2021 or 2031 to 2036. Again, the tax is the largest part. All of this was calculated based on modeling based on past data and the expected numbers in the future. Other city taxes, that is, hotel, motel tax, public facility franchise tax, and gas and electricity tax are almost unchanged. The growth rate is very low. This is what you can see in this table. And this prediction is not the best scenario, but I would like to tell you that it is quite far from the worst scenario. It's conservative, but it's not as conservative as the budget. As Jeff said, there are a lot of possibilities, and there are some parts that we don't know what will happen in the future. I tried to operate conservatively, but in some cases, I wonder if I was a little too optimistic. For example, the use of funds and real estate is like that. This is our investment income. The interest rate has maintained a high level, and we have benefited from it. A year ago, I expected that the interest rate would not be as high as it is now, but it has been maintained almost the same even after a year. But I think the interest rate will start to fall someday. I don't know when it will be, but I'm using a lot of facility deposit money to run the Shilip Park swimming pool, so the amount of cash will decrease. Since the interest rate will also fall, it is difficult to predict at what speed the investment profits will decrease. Ah, and I will omit the part related to Inho. This amount is mostly construction-related budget. 75% is composed of construction and inspection fees, which is very variable. In 2017, it was canceled from $2.7 million to $3.5 million, but in 2015, it fell to $1.8 million. Therefore, the range of change is very large. The government-level cooperation budget is mostly police-related federal subsidies. The government's lack of budget was included in the item. However, this will be reduced in the future. In addition, it is included in the account of the 28 contract-related budgets related to firefighters, libraries, and animal shelters. The fee and service usage fee is mostly the admission fee of the recreation program. And 25% is the plan review fee. The other costs are mostly administrative costs. The general fund is responsible for most of the city's administrative functions. The financial department, the city administration office, the HR department, and the corporate fund, Sanhasudo, Woosucheori, Meripji Management, etc. pay a certain amount of money to the general fund in all departments. Most of these costs are included in this item. For other financial income, there is a loan situation and asset purchase loan. The transfer of operating funds is almost all of the employee welfare tax. The employee welfare tax itself is included as an employee welfare tax fund, and the part that is transferred as a general fund is displayed in the item. The reason why this item is large is because it can be transferred to a certain fund such as a facility settlement fund or a regional social response settlement fund from a general fund. The interest rate is reflected in the interest rate. Please check it again. Would you like to? Yes, please. I'll explain why this item is called a guitar and why this item is the second largest of all the income items.

Would you like to use the microphone? Oh, yes. Thank you. Oh, I'm sorry. What I want to tell you is that the $7 million is the second highest income item, and we call this a guitar. I don't know.

I don't know why it was included here in the first place, or if it's a management fee request, so it doesn't belong to another standard crime. How about categorizing it separately as a management fee request? It was always just marked here. Yes, I don't know.

Second, it seems to be classified like this because it is a high-income item. Usually, other items refer to items that occur unexpectedly, but this is an item that occurs every year. I don't know.

Next, let's take a look at the expenditure. This time, I won't explain each item in detail, but I'll take a look at it step by step. As I said, the amount is the biggest cost of human rights. Well, this figure is based on the average growth rate of 3.53% for the past 10 years. Most of them are income-related, but health insurance is also included. If the income is affected, the IPRS and MFP RSI are also affected. The growth rate of the service sector is 4.14%, which is also an average of 10 years. Except for the ARPA public financial management law. Because of the revenue replacement cost included in the ARPA, the growth rate may have exceeded 5%, except for this. This is not normal operation. The growth rate of the subsidiary sector is 4.96%, which is also an average of 10 years. The capital project is based on capital improvement plans. There are all the funds from the general budget and the facility settlement fund. In the 26th item, you can check the transfer with the Regional Social Response Settlement Fund. The general tax is used for MPOJC and airport support. The transfer is separate with the facility master plan. The internal fund loan situation is paid according to the internal loan contract related to the land. Public transportation-related expenses are generated from public transportation taxes. In other words, all incoming public transportation taxes go out. The amount of money that is deposited as a cheap housing fund and other deposits are public transportation-related public facility franchise fees. In 2026, this fee was not completed, so it increased in 2027. Now, if you look at the income and expenditure graph, there is a rapid increase in 2026. This is because of the use of facility deposit. Until now, we have used $13,000,000 at the Shilip Park swimming pool and $3,250,000 at the police facility. This graph shows the expenditure rate for income, and it is expected that there will be a deficit of $ 8.9 million in 2036. This is about 8.2% of the budget. From a different point of view, this shows the estimated balance of the unregistered fund and the rate of expenditure. Generally, it was based on the estimated income and interest rate of the budget, but because of the new law, it should be based on the rate of expenditure, so we will change it now. As you can see, it's okay to go down to 28% and 29%, and then it goes down rapidly. This part is about 9%, which is equivalent to a monthly expenditure. It's about 9.4 million dollars, but at this point, there may be a problem with the cash flow. The property tax is taxed in October and April, and you have to endure until October, when the next lease comes in with the current balance in June. The next tax is between $8 million and $12 million, and if you want to hold out for a few months, you need money. Therefore, at this point, there may be a problem with the cash flow. However, as Jeff said, it is not a crisis that we need to respond to right now. However, if we start a change, we can break the increase tax so that this situation does not occur in 2036. Please go back to the slide for a moment. Thank you. Yes. I will tell you a few possible options. I didn't list all the options. And it will be difficult to see a big effect with just one of them. You will have to combine several options. First, through service payment, you can calculate the current permission and service usage rate. For example, the loan permit, the recreation program, and the program or service that has not been paid in advance so far can be paid in advance. You can pay in advance for fire, library programs, etc. You can also pay about 3% of the public facility franchise fee. This is about $3 million. Again, this is an income that is almost unchanged, so it will be somewhat imported, but it will not be able to catch up with the increase in expenses. This can also affect the level of bonds. In the current situation, we have some flexibility to increase our revenue. However, the more revenue we use, the less flexibility we have. For example, we can use lost revenue to replace programs or services that are currently supported by general funds. Also, you can increase your employee welfare compensation as much as possible. Currently, you can earn an additional $1.7 million, which is about 34.5 cents more than the current amount. This can also affect the tax grade. And reducing expenses. In other words, you need to consider canceling or changing public services. Can you explain some of the details? Can you explain why this affects the tax grade?

It's because the flexibility will decrease.

If you can make more profits, it is considered a good thing. However, if you use all these revenue sources, the flexibility to respond to the problem is limited.

Also, we still don't know the exact trend of loss, profit, and loss. I think there was a story that the budget was made conservatively, I hope so. Yes, of course, I hope there will be good results, but I don't know how much the difference will affect if there are more losses of about 2 million dollars than expected.

What about the loss of revenue itself?

I don't remember the exact range, but I think it was about 14 million dollars to 16 million dollars, and we estimated 14 million dollars as a budget. So if we reach the upper limit, it will be close to 16 million dollars. Of course, there is some flexibility, The content stated in the voting paper must also be in line. Therefore, some of the money must be invested in infrastructure partnerships. It is expected that it will be used more in cheap housing partnership businesses that are funded through general funds.

Do you have any other questions about general funds before moving on to transportation? Yes, likewise, some income or household was used, and we will take a closer look at this. This part is a little different from the general fund. Because the main income is the annual operating subsidy. Therefore, we classify and manage the following items according to this subsidy. Through this, we can check whether there is enough fat matching funds and how all financial situations are tracked. Most of the other income is investment income. The parking fee and parking permit fee are also included here. In addition, there is other income for small businesses. The local matching fund includes the initial support fund of the state government of hundreds of thousands of dollars, the state government's operating support fund of about 800,000 dollars, and about 70 dollars for the 282 fund for University Heights Traffic Service. This includes Cote Street rent. For businesses using Cote Street transportation services, the annual support is about $19,000. The largest amount of local matching funds is about $4,000,000 in transportation tax. And there is a little budget for disabled transportation services, which will be used or estimated in the year of 2028. As I said before, the annual operating subsidy is their main source of income. We were able to operate without using all the subsidies. So you can see the numbers going up and down. We have used COVID-19 relief funds, and all of these funds have now been collected. And we have endured as much as possible to save some of the operating funds and reduce the subsidy. The extra operating subsidy will be granted in the fiscal year of 2029, and then it will return to a normal level. And the public business franchise tax was not properly taxed in the fiscal year of 2026, but it is expected to be taxed by about $ 1 million in the fiscal year of 2027. The operating cost increased by 5%. The actual 8-year average increase was about 5.8%, which is higher than this. The repair cost of the engine has definitely increased. So, we hope that the cost will decrease when a new bus is introduced. However, it will take years to purchase a new bus, so we are considering a way to rent a bus during that period. And we are allocating the necessary funds during that period as bus prepayments to support matching funds to purchase a new bus. Just like the general fund, the budget will be maintained until 2031, and there will be a 5-year break until 2036. In the year of retirement in 2036, the situation looks better because there are only 4.8 million dollars of deficiencies, but this is 27.7% of the budget. Therefore, it is expected that it will have a much greater impact than the general fund and that the impact will appear much faster. By 2028, it is expected to get better, but after that, it will decrease dramatically. Income is almost unchanged. Therefore, there are many ways to consider, and some of them are the same as what you saw in the general fund. So unfortunately, it can only be used in one place, and it cannot be used in both places. However, it is the same as the current parking fee and the time and land service fee and the bus fee. Again, there is a public facility franchise fee. It is about 1.9% of the lost funds. This is the cost of the magnetic program, in addition to the loss of funds and already used. And once again, there are changes in public services. Do you have any questions about public transportation?

Do you know that other regions, such as Coralville and Eojeomyeon University are also experiencing similar difficulties in public transportation? Other local governments know that it is not their responsibility, but can other local governments also feel the same pressure as we do due to the reform of the new system? I don't know much about the university's campus bus system funding method, but I don't think it's based on the tax. Therefore, I don't think they will be under the same pressure as we do. Suddenly, there is one thought that comes to mind, and I don't expect anyone here to know the answer, We've been discussing regional public transportation for years. Will it help solve this problem? Or will it worsen it? I'll tell you again. Right now, no one can know the answer. In the process of continuing this discussion, I think this might affect how much effort we need to make. It's just my opinion. Yes, the relevant legislation is... The local tax on regional public transportation. It contains the content of taxing new construction projects. Therefore, there may be some advantages, but the larger the public transportation system, the more value it can create. For example, I think it would be better if the value of the regional society that grows like North Liberty or Tiffin contributes to the public transportation system. There will still be a lot of restrictions, but I think it will be better than it is now. Are you currently eligible for local public transportation based on your population? Are you still not satisfied with that standard? Yes, not yet, but it will get closer soon.

Nicole, let's ask about other types of taxes. It was mentioned that the post-employment pension can be used to preserve these financial deficiencies, but are there any other pensions that have not been used or considered yet? Of course, you've thought about it, but I'd like to know more about it. I don't think so. Because most of the special taxes are gone.

I don't think there are any other taxes that would be helpful to the general fund or public transportation.

Have you spent almost all the illegal tax?

Yes, I have spent almost all the illegal tax. However, that part will be reviewed every year, but as of now, it has almost reached the limit of the illegal compensation fund.

One of the solutions presented in one of the slides seems to be taxing 0.34%. Are you only taxing once until 2020? Or are you taxing every year?

Yes, it's possible. By the way, can you tell me about the deposit before that? Yes.

Before we talk about the deposit, I'm curious if you have any plans to review other deposits under the assumption that there are no other types of deposits. Um, I grew up in Iowa and main Cedar Falls, where I make $40 million a year. Of course, that money is not used as a profit, but it is a profit from public facilities. It is a huge burden for the city to promote projects such as public banks, public transportation, and public facilities. It is also worth considering to leave the role of the private sector to the public sector to increase profits. Rather than simply assuming that income growth is impossible, I am interested in discussions and discussions to analyze the cost-effectiveness of such businesses. Well, I don't know. We have already thoroughly reviewed the provision of communication services. We probably submitted a report to the Senate in 2017 or 2018, and I think we can find and share the analysis data. And this local society has a history of voting on electricity companies about 25 years ago. In addition, I don't know if there are other options, but I think we need to open up all possibilities and review them every year as we go through this situation. In particular, in the case of large businesses, if it is judged that this can save lives or give a big blow to us through investigation, I think it is better to start early even if it is a 5-year journey. Yes, good.

Now, let's talk about the fund-raising policy. I will explain the four main items, that is, the fund-raising, emergency fund, facility fund, and the regional social response fund. First of all, let me tell you about the fund-raising. The current policy is on page 253 of the budget. If you are bored, you can look at the budget. Currently, the U.S. fund-raising policy maintains the operating fund fund-raising at the end of the fiscal year to the level where it can ensure sufficient cash flow throughout the fiscal year. And the non-standard fund balance of the general fund should not fall below 25% of the total income and interest rate, and the upper limit should be 35%. Therefore, what I suggest in this budget is to maintain the first policy as it is, but the second is not to lower the non-standard fund balance of the general fund from the year of 2028 to 30% of the total expenditure, and to raise the upper limit of the current fiscal year to 35%. As I said before, 35% of the expense is according to the law. The reason why it was changed from 25% to 30% is because it previously included both income and previous expenses. The expense category does not include previous expenses, but as you know, previous expenses mean operating-related expenses such as airport, MPOJC, and affordable housing. Therefore, 35% of the loan cannot cover all operating expenses. Therefore, the minimum standard was set to 30%. I will not explain all the items of the current policy in detail about the emergency fund. The change is only a slight modification of the existing policy text. It is more clear to define the items that are related to natural disasters or other disaster response. Previously, it was stated that it was to ease the change in income tax revenue, but now that part will be deleted. Therefore, it means to prepare for a sudden change in income from the main government or the federal government. And I added the word sudden. In fact, the facility reserve fund is It's an emergency reserve fund, and there's an infrastructure-related item in it. What we realized was that this part of the policy was not separately divided. So we... Through this definition, we will reduce the need for cars by providing funds to replace, rebuild, or support modernization of city-owned facilities, ensure safe, healthy, and approachable work spaces for civil servants, and separately distinguish the parts to improve the efficiency and capacity of city-owned services. And the Regional Social Response Preventive Fund provides financial resources to help provide improved public safety services to the regional society through partnerships with municipal management or other government agencies or non-governmental organizations. From here, it gets a little messy. In accordance with the current policy, the city must maintain an emergency reserve fund of the same amount as the state government's compensation for commercial and industrial real estate tax replacement for the amount exceeding 35%, which is the limit of the emergency reserve fund. It won't exist because it's a deposit. In addition, after retirement and retirement, it is about 46 million dollars. Therefore, I think it is realistically impossible to achieve that goal. So there will be a lot of changes. This document explains these situations a little more clearly, and some of them are about the actual operation method, but there are some parts that have not been clearly defined. The amount exceeding 35% of the general fund's unauthorized deposit is classified as one of the emergency preparation funds, facility preparation funds, or regional social response preparation funds. The city will try to maintain the emergency fund to 8 to 16% of the actual spending in recent years. This is about 1 to 2 months of spending. When the emergency fund goal is achieved, at least 90% of the amount exceeding 35% will be distributed as facility funds, and the remaining 10% will be distributed to emergency funds and regional social assistance funds. It's a pretty big amount. I'll explain step by step how it actually works. I think it's easy to understand when you look at the numbers. The current estimated value is a very approximate figure. There's not much left of the 2028 fiscal year budget, and there's no additional budget request or change in any department. If you look at the approximate figure, it is expected to exceed $6 million, which is the 35% of the budget target. Based on this amount, the target amount of the emergency fund will be between 5.6 million dollars and 11.2 million dollars. The current emergency fund balance is 5.1 million dollars. I will explain how to distribute the excess 6 million dollars. First, send 7.9 million dollars, which is the amount of the current target amount, to the emergency fund, and the remaining 90% to the facility fund. Therefore, the amount of money sent from $6,000,000 to the emergency fund and the 90% of the facility fund, that is, about $4.9 million, will remain. The remaining 10%, that is, about $552,000, will be distributed as emergency reserve funds and regional social assistance reserve funds. In the end, it will be in the same form as the following. First, $479 is a emergency reserve fund, then $490 is a facility management fee, and the remaining $552 is distributed as one of the emergency reserve funds or regional social assistance reserve funds. Do you have any questions? This is also a flow that simply shows this operation method. Yes, that's right. Yes, that's right. I'll tell you again, but this is an approximate number. There will be more accurate numbers when the budget is announced, but this is the approximate frame. Yes. The distribution process is the same as the following. This is the time to do this after this.

It's not very simple, but I like it. Yes, that's right. Thank you.

This is the last slide. This is the impact and direction of Moody's credit rating. It's about the expected changes. First of all, Moody's has an evaluation table that gives you a score based on four crimes. If you look at the score table, our grade is AA2, which is technically two levels below AAA. So it's AAA, AA1, and AA2. We were able to get a triple-A grade because of other essential factors. 30% of that score comes from economic-related areas. The resident income is A, the total value per person is AA, and the economic growth rate is also A. This is also due to the large student population, but it is known that some numbers tend to be artificially lowered when considering the student population in the evaluation process. The remaining 30% is financial results. The balance of the allowance is 20%, and the flexibility ratio is 10%. The reason we were able to maintain the AAA grade is that we received a high grade in these two categories. I will explain the two items in detail in a moment. Next is the institutional 70%, which is the AA grade. This is related to the profitability I mentioned earlier. Because it is related to the regulations of the main government, I think the possibility of this evaluation to be lowered is high. The tax-related law can affect the score as the rate of impact is limited. Also, the fact that the funds we are currently using have decreased is part of profitability flexibility. This can affect the institutional framework. The last item is 30% leverage ratio. The long-term bond ratio is AA grade. The fixed cost ratio is AAA grade because the bond size is small. However, as the number of fire extinguishing facilities and natural gas large-scale projects increases, there may be a change in the fixed cost ratio. Can you explain the fixed cost ratio in an easy-to-understand manner?

The key is... It is the net profit per share. If you look at the cost-benefit ratio for the year 2025,

In particular, it is a very good level compared to the average ratio of 65.8% of AAA-class cities. However, the ratio of IOWA's AAA-class cities is 103.6%. The other two cities in IOWA are West Des Moines and Cedar Falls, and these cities are in a similar institutional frame due to the government's regulation. Also, IOWA is more similar to IOWA's AAA-class cities with a low overall economic growth rate of 1 person per resident income and a low overall economic growth rate. However, we expect that the ratio will drop to about 86% through the main capital investment plan, CIP project. As mentioned earlier, we are using the facility settlement fund for the construction of the Shilip Park swimming pool, and we will also use the settlement fund for the construction of public transportation and equipment facilities that will be built in the future, as well as sewerage and regeneration natural gas, RNG, and digestive project. And the mobility ratio was very high at 131% in 2015. It was much higher than 93%, which is the median value of AAA-ranked cities. Iowa and other cities are slightly higher than 127.6%, but it is expected to fall to about 99% in the future. Therefore, it will still maintain the AAA grade in this category, but it will not be as powerful as before. This can definitely affect the score in the future.

I wonder if you have made various predictions about the mobility for the next 10 years, considering various factors such as pressure and, for example, a decrease in sales. Based on this information or prediction, what impact can it have on liquidity? I would appreciate it if you could explain in detail how much the sales reduction is and how much the ratio is, but I would appreciate it if you could explain what is the relationship between sales reduction and liquidity. The liquidity and the cash flow are not the same, but there is a very close relationship. Therefore, if the cash flow decreases, the liquidity will also decrease considerably. Do you have any other questions?

There's a lot to explain. Can we think of the future as an important turning point in 2029, 2020, and 2030? If you look at this chart, especially the public transportation-related chart, considering the one-hour scale mentioned by the city manager, is it appropriate to interpret that the public transportation problem is beginning to emerge in the current budget as it is?

Public transportation budget seems to have to be reviewed again in 2028. It may be too late in 2029. There is still room for general funds, but as you can see in the graph, it will continue to rise once the trend begins. Therefore, it is important to make the trend slow as soon as possible. As Jeff said, it is not a crisis where you have to buy 10 million dollars right away. There is room for progressive change. Thank you.

I don't think you have any more questions, but I will continue the discussion at the Senate. Of course, we just discussed a few prospects, but we can discuss what priority is in the upcoming budget discussion of the next year. As I said before, priority. We sincerely thank the city employees for presenting such comprehensive and specific figures. We also thank you for thinking that you have focused on the things we can do very well. In addition to the content presented in the city, I would like to point out that this crisis was manipulated by Demoin for us. If you look at other cities where I used to live, cities that were reviewing budget prospects have experienced great confusion. I lived in a bug in the Illinois area, and a large factory that employed about a third of the townspeople suddenly closed and left. So it was a big blow. There was also a serious problem like bubble collapse. But this is not the case. If you look at the services we currently provide, the reason why real estate prices are rising is because people want to move here. It's a good place to live. However, Despite everything being done properly, it is a pity that we have to discuss how to continuously improve the service in a week run by reasonable and healthy people. Shouldn't that kind of discussion be made? So I wanted to tell you that city employees are not involved in political issues. Some of us are involved in political issues beyond the scope of our jobs, but if we do not make a difference in the backroom, we will have to choose another way. Of course, it is not a way for city employees to interfere, but I would like to suggest another way to improve this situation for everyone watching our broadcast. Of course, I think our local residents are excellent, but for change, we need a perspective beyond our region. Because, as you know, this is happening in a situation where we cannot control it. Our city employees and the city council have done a lot of good things and positive things for years. Nevertheless, this situation is being forced on us. I wanted to express my complaints about this situation, and I wanted to let the citizens know that this is not due to some kind of wrong management. In fact, it is the opposite. If this situation hadn't continued for decades, we might have been in a much more serious crisis. Based on my experience of talking to city administrators since 2016 and 2017, I would like to say that in the city, I don't know what it will look like, but I knew that there was a high possibility of confusion, so I made a plan in advance. Therefore, we are not suddenly in this situation one day, but we are deeply grateful for the fact that we were able to secure flexibility and leisure funds as we do now through careful budget arrangement, very detailed budget management and settlement funds. I wanted to let you know this.

In my opinion, these measures seem to have been a kind of desert. One of the things I wrote down is a problem that the House of Representatives will have to think about more and more in the future. At the same time, IOWA City can only grow through new value creation by maintaining the characteristics, personality, and the elements that make people want to move here, enjoy, and work. Then, what is the new value creation? How can I develop this in a way that is essential to the city and helps the city landscape? In my opinion, it is something we must do. So far, we have focused on various competitive, common, and classified priority ranks. Of course. But this problem is pushed from the priority ranks, and it is also understandable. However, considering that the current method cannot provide essential services and the way to solve the problem in a situation where there is an increase in revenue is a new evaluation method, it seems to be a much more important discussion topic in the next few years. I don't have any other more in-depth opinions, but it's a shame that the City Council did not actively address the problem. There are employees who have a wide network of very capable and experienced employees who can communicate with developers and think about how to solve this problem. However, I think we need to continue to maintain our city and discuss whether we can provide all the services and benefits we want. Since local governments are already using it, we need to consider how to use it as another tool that we haven't used yet. Yes, I think we need to go back to predicting what is needed to completely eliminate the gap rather than reducing the gap. If growth is the only option, we really need to know the cost of growth. If you think about the conversations I had with former mayor John Thomas, the cost of city expansion is that cost. When we consider the cost of service expansion in the process of growth, we must prevent the gap from getting bigger. And Jeff, thank you for considering this question from a strategic planning point of view. Rather than simply listing everything in the soon-to-be strategic planning process, I think that we have more responsibility to discuss deeper and deeper in order to first define the ranking and define the core service. I am thinking a lot about the expansion of the housing development business. It seems that the amount of investment required to make it as successful as we want is considerable. It is a new field that we have not experienced before in the government. In other words, we are entering a new area. So, I think we need a clear discussion on what the core service is, how to define it, and how to set a priority. To add one more thing, I fully agree with what you said about the strategy plan.

I am very carefully approaching the impact on the value and local society we pursue. In particular, if there is a budget discussion on raising the value of the local society and creating opportunities, what other opportunities are not used in my opinion? There are systems such as TIF, tax credit, finance, and opportunity areas. Are there any other methods that we haven't used yet? What I would like to say to our employees and fellow consultants is that if there are other ways that can help us grow, we would be happy to review them in the next budget meeting. I'm sorry. I wasn't trying to cut you off. Oh, it's all over now. Yes, thank you for bringing up the TIF story. There's a question I forgot and couldn't ask earlier. If I understood correctly. Due to the legal system, there's a strong restriction on using TIF in the city. It's about getting rid of some of the advantages that TIF could have brought you. Is that right? Yes, that's right. The TIF and tax exemption system have been used nationwide. How should I say it? There must be ways to re-organize the TIF agreement by applying a new evaluation. The way the law works is a bit ambiguous, so it's hard to explain, but if a new evaluation is applied in the first year, it is referred to as new growth, From the perspective of the city, the first year. N does not provide any incentive, and you can get benefits by providing incentives in order from the second year to the tenth year. However, historically, it was common to receive the funds needed for development as a gift when using the TIF or tax aspect. Because that was the time when there was a difficulty in the cash flow. So the development companies wanted to receive all the funds as a gift. But the main government has now created a structure to encourage cities to provide incentives in the future. This is where the difference occurs. We have never signed a TIF contract or a tax-free contract. It is known that there are no cases in any other city, including Iowa, where incentives are not provided for the first year. However, many cities are now reviewing that part, changing the TIF policy, adjusting the tax-related schedule, and considering how to provide incentives in order from the second year to the contract period without providing incentives at all to achieve new growth in the first year. Yes, thank you. It's interesting.

Is there anything else that is disadvantageous to developers other than what you just said? It is a great disadvantage that developers want to receive incentives in the early stages to secure project funds.

Generally, projects that are not business-based are in the early stages, so they want to receive incentives as soon as possible. As you said, before this law was passed, many cities and city unions in Iowa tried to fix it. They thought this law was too bad. Yes, this was a problem that everyone expected, and it is a difficulty that everyone is going through now. As a member of the City Alliance, I tried to suggest a way to reflect the new evaluation when the real estate is completed according to the schedule or TIF schedule. For example, if there is a four-year schedule, the new building is included in the fifth year. In other words, even if the building has been built and operated for five years, the new building will be reflected in the evaluation later. However, such a claim was not accepted by DIMOIN. This is the direction I'm heading in the future. I agree that the core service must seriously discuss what it is and organize the low priority areas through the process of strategic planning. However, I think that our top priority task right now is to solve this problem while setting political goals or lobbying goals every year during the legislative session. We should not make such plans, but we need to establish a foundation to build an effective new tax system for IOWA. It's terrible to think about the impact of this growth hazard and the future trend or trend. In particular, I think it will be a bigger blow to small cities. The small cities around Iowa have no income at all, so they will be in a disastrous situation. It will be helpful for us to figure out who are in this situation and how much they are suffering. We often consider regional cooperation with major cities. Seedle's Feeds Yes.

Last week, I heard that Mr. Dimoin will have to pay $12 million in a few months. So, yes, small towns will close, and some of them will no longer exist, but Mr. Dimoin will have to pay a huge budget in a few months.

Everyone knows that all cities, especially small cities, are going to be hit hard. That's why we think it's going to be easy to solve. Everyone hates the registration system, so we have to convince people. As I said before, we need to create a healthy and reasonable situation.

Yes, this is not just a matter of Johnson County. Yes.

And the people who throw away this movement are from small cities that have been hit hard.

I'm sorry. I just came up with a few thoughts. The TIF and tax-related changes can be a partial mechanism to solve such problems as a tool that we will use with the pre-payment loan tonight. But I have a question. Could you please calm down and think the other way around? I remember the conversations we had while implementing the main asset tax reform in 2013. In the budget announcement at the time of the progressive transition to that reform, I remember saying that I would be in a really serious situation in the year 2025. Jeff, can I ask you what comes to mind right now? At that time, I wonder if some situations interfered and made us in a better situation, and if there is a possibility that such a situation will happen again in the future. Please note that ARPA and ROST are no longer subject to discussion. However, thanks to the 2013 bill, the city was able to really face a real growth from 2015 to 2019.

If you look at the construction status, there was a crane in the sky, and a lot of regional development was achieved, so we were able to overcome the difficulties caused by tax reform during that period. However, to be clear, the organization had a lot of influence. Comparing 2013 and the present, there was no budget crisis, but the number of employees was completely reduced. So, since 2013, or perhaps before that, the number of employees has remained the same. In the meantime, the population of our region has increased by 8,000 to 10,000 people, which is the size of two small villages. However, most departments and employees have not experienced an increase in the number of people or resources required for work. So it had a significant impact on the organization, but I think the external crisis could be eased to some extent.

Work smarter than working harder. There is an old business lesson, but in the end, it means that children should be used as much as possible with the resources given. As you know, Oh, then you can hire more people. There are no more companies that say that. Including government agencies, no more companies think that way. Of course, I've seen some experiments to avoid recruitment. I don't think that kind of job will ever come back. That's a really sad part of it. Anyway, I applaud the employees. Um...

Let me tell you again about the priority of consultants. It is important to seek a way to create a source of income while creating creative ideas and having a good impact on the local community. Yes, and I'm going to look at what can be done and what they look like. Yes, and what I didn't know for sure was that Preliminary budget policy For example, regarding the proposal, what direction are you looking forward to from the meeting? Did you want us to tell you that part today? In fact, we are asking you to include that policy in the next budget. So, it is a budget that will be decided in April next year and the meeting will start in January. We are suggesting the direction to move forward, and the article you saw today will be included in the employee proposal. Therefore, if there is anything different from that direction, please let me know in advance. However, yes, and if you have any minor corrections, I think you can adjust it in the budget review process. I think there has been a lot of development, especially as we were able to build Medicaid and Medicaid, in connection with Iowa City's regional social response. This is a very important change. They were able to raise $1 million a year through service. Therefore, I think we will soon be able to figure out how much financial size is needed in the city. However, I didn't want to make a hasty decision before I could properly understand this situation. What I was trying to say is that the only definitive decision the Senate has made regarding the preliminary budget is the transfer of funds. $162,000 has been transferred to the regional social assistance reserve fund. The assembly will have the right to use the funds at any time right now. You don't have to wait until the next budget change period. Depending on the reserve fund policy, it will be decided how much money will be deposited in the fund when a deposit is made. And of course, there are also lost funds and other possible funds. Yes, but... If you think about the overall amount of money that goes out of Iowa City, I think that's mostly private profit. Like some of the examples I've told you, if we can incorporate ourselves and make that profit not for a specific individual but for our local community, and circulate within it, I think that can be the solution to this problem. So, yes. I would like to ask if there are any specific budget-related matters that you would like to discuss at the demonstration. We all have strategic opportunities to gather and discuss. At least. I will wait for that opportunity. Yes, in my opinion, I think there will be quite a lot of discussion about what the priority ranking is right now. I agree.

I think it will take half a day to carefully consider the priority ranking. In particular, there was a specific point about the public transportation situation and the soon-to-close crisis, so it's like pulling out a knife from a rock. It's a difficult situation, but I think I'm really curious about how to maintain a fair and free way even in difficult situations. Because this has been the biggest help to the local community, and because the most people have accepted it positively. So I want to put this part first. Of course, we need to talk about what this should look like and whether it is possible. I know too. I'm not saying that everything is possible, Let's focus on this and have a deep discussion. And I know I'm talking about all of us. Yes. Yes. Yes. Related.

How much effort do we need to understand how the system works and what financial impact it has when we increase the size of the local transportation tax? That's what I don't understand. while maintaining the public transportation tax? Or are you giving up one of the two? This is the topic I've been talking about while I was at the demonstration. I always felt like we weren't big enough yet, so we didn't reach our goals. But I want to know how close we are, what we can do to balance, and whether it's actually important. Will it actually help to implement fair and free public transportation? Yes, to put it simply, to lower the population standard. And, Not only IOWA City, but also other regional societies need political will. Coralville, North Liberty, Tiffin, etc. No matter how you define the area, the entire regional society must set up a new government institution. This institution will play the role of the board of directors to manage the services provided by deciding tax surpluses, etc. Therefore, the local societies must declare their willingness to participate, and some of them must give up control of public transportation. In the past, the local community was able to exert influence, but the final decision on the level of service was made by a new institution. I thought this was a solution for the future, but I think you know well about the local public transportation authorities. The relevant laws are a little different. In fact, the service cost is estimated to increase by more than 2% in evaluation rate. That's right. Yes, that's right. All right. If that happens, it's going to be a little more difficult for us, but I think it's going to be about 2.5% to 3% a year. But I don't know how the participation of other regional societies will affect the future.

Yes, yes. As you said, it is important to maintain the service fair and free, so we will continue to discuss. It is important to maintain all services without reducing or overstating the service. It's not like a fire or police service that's being extended right now, but how can we find a solution at the same time by providing the same service as now?

If there is nothing more to discuss about the case No. 4, we will move on to the report of the 5th case, the press release of the committee and the subcommittee. No. All right. Let's finish the business meeting. We will be back for the official meeting at 6 p.m.

Né?