Budget Committee - Regular Meeting

separating the budget. I'm telling everyone to use it or lose it. So, we've got

So, I'd like to call this meeting to order. The budget committee for the 27 budget year. Are there any changes to the agenda? I would like I propose that we add between items five and six you add an agenda item called the budget message. We do need to have a budget message. It is in the the U budget book but it's um you're not allowed to talk about the budget till you have your budget message. I'm that was a motion. Do I have a second motion?

Yes. All those in favor? I I opposed. Okay. So, between five and six, put budget message. Yes, please. Okay. Spencer, were you going to do the introduction? Is that you? Uh, I think I'll get the introduction we get to the actual budget. So, I would say if you want to I think that's a that that's your call. Can I ask who the budget officer is? You are. Okay.

Well, I think I already announced that this is for the budget year 2027, so I think we're good. Uh, this is our first meeting. Uh, has everybody had a chance to look at the minutes? Are there any changes? Can I make one note on that? We sent out a different set of the the minutes that are physically printed underneath your uh books are different than the ones you received in email, but the only difference is that we added uh who voted for what. So, all of the votes were unanimous there. It's the exact same thing. It just says who voted and who wasn't there.

Thanks for that. Any other changes? Can I have a motion for approval? Hold on one thing. Should be April 23rd, 2025. Yeah. Yeah. Those are the those are the minutes. Oh, the agenda says 2026. Yes. Sorry. Oh, I see what you're saying. Oh, yeah. That needs to be um corrected on the agenda. Why? from 25. Yeah, the agenda it says 26. So, do we This is fine, but this is not

on the agenda. It said approval of the 2026 minutes. The one I fixed that. Oh, sorry. Okay, I'll make the motion. Okay, second. We got a motion in the second. All those in favor say I. I. Any opposed? Okay. I'm sorry I did not get that first and second. I'm abstaining from the vote. I haven't had a chance to look at this in advance to see if this actually okay

and then everybody except for Kathy. Okay. Thank you. So next we need to elect a chairperson. Um, I move uh I nominate uh Kathleen McDonald to be chair. I'll second. We have a first and second there. All those in favor? You can see if there's other Oh, are there any others that would like to step up? You might be the one that wants to make a different motion. Just throwing that out there. pick. No.

Anybody else interested? Any other nominations? All those in favor say I. I. Those opposed. Okay. So, now we're going to elect a secretary. I move that Nancy McHune remains as our secretary. I'll second. We have a motion in a second. Any other? All those in favor say I. I. Opposed.

I want to bring up a point of order. Do we not have to take roll call at this meeting? I don't know that we ever have roll call. We have I can show you all the things from last year. I just brought them in myself.

You have to me. Mr. Kyle, would you like to give us the budget message? Well, the budget message is on what page of the document? I don't have it in front of me.

I think Starting on page one through, yes, some said 1 through four. Um, so we've all been provided the budget message with the budget documents. Um and so with that uh the plan for today is to walk through the um what you're being presented which is uh all contained in the budget message with uh additional um information any

you have any highlights to share? That's what the whole presentation is. It's all highlights. So

okay no low lights. Well, there may be some in between lines maybe. I don't know. Um, okay. So, uh, and feel free to stop us at any point. Really, I think the purpose of today, even though I've got a slide that says purpose needs to get warmed up, I guess. Uh so purpose a review the proposed fiscal year 27 budget highlight the major financial drivers in the budget walk through some key policy decisions provide some context for your discussions and set the direction for the budget approval process. So the purpose of today you've been handed a how many page document?

150

150. So, um, the purpose of today's meeting is to introduce it to you so that you have more context when you're reviewing it on your own or anything else that you are going to do um to make sense of it and kind of access the information in there a little bit easier. Okay. Total uh budget snapshot. Yeah. Do you want to move John Demp to the top right? There we go. Okay. The total proposed budget is about $50.5 million. Um, if you recall, we the actual budget number you'll be adopting is much higher than that. This is taking all the transfers out. This is how much we plan on spending. This is a significant increase from last year, but it's only because we've included quite a few capital projects is the main driver of the the changes. um not as much on the operating, but we'll get into those those details.

Do you recall what we were at last year? 40 something million, I think. Yeah. In years past since I've been here, it's it's fluctuated anywhere between about 40 million and about 35 million. So, somewhere in that ballpark, uh depending on the year, but really depends on how many new capital projects we're putting in there. And that's what kind of there's there's two big projects that you'll see in this that drive that uh that cost up by quite a bit. Uh yeah, significant increase in capital activity. And so we're looking at uh a balanced approach between operations and infrastructure.

Every time I hit the zoom cameras, it takes you off being able to All right, click back.

Just sent me the digital version of the We're way ahead like 17 or something. All right, here we go. Department request and we'll get into these details later. So, uh through the process, um each department submits their request for the next year. Um the council did have an opportunity earlier this year to hear from the department heads either at a special meeting we had to go through those. I think some on the budget committee were able to attend. Uh and in one case for public works when it was capital heavy, we did that during a um work session of the city council back in I think February or early March. Um there is no uh increase in the total staffing the total of FTEES which stands for full-time equivalent. So we're not proposing any changes in in the number of employees and our focus is on maintaining the current service levels, addressing our operational needs in managing costs increases. Okay, general fund overview knowing that we have some some to here. This is the primary operating fund of the city. We also have some capital funds and the other major ones are are enterprise funds which are uh business funds is funds that are meant to be um operated like a business and standalone on their on their own accord. That would be like our water and our sewer utilities as well as the convention center. But the general fund is the bulk of the

operating of the city outside of those. Our revenues are mostly stable. The major sources are property taxes which are very stable and uh transient lodging taxes and we'll talk a little bit more about some of the changes coming in that. The key pressure is rising cost versus limited revenue growth. um public safety uh continues to be the largest expense of the city and the you'll see significant increases in public works but it's not on their operation so much as is as it is on the capital and again driven by personnel increases well I just said in infrastructure water and sewer one of the biggest uh city's biggest uh financial challenges so we've been talking about this for for several ers. Uh we have significant deferred maintenance and capital needs in both water and sewer. And we'll get into some of these projects that you'll see are um a lot a lot of leg work has started and uh we've made some good progress in the last year. Thanks a lot in part to Paul Stall, our new public works director. Uh however, current funding limits are not sufficient in the long term. I think we know that and again we'll talk a little bit more about it. Uh so this this year begins our transition toward towards working towards a more long-term solution that includes some planning analysis and uh and some early investments next year but that will continue in future years. Um utility rate strategy. So rate increases are expected in the future. Uh the current budget assumes a moderate increase of 3%. That's the minimum that's needed just to keep up with inflation. Um however, and this you'll see this

more when we get into the capital projects is um we need a a longer term analysis on how we're going to fund our utility projects. And so, um, we have requests or proposals almost ready to go out and already, um, have been in contact with at least one consultant who's done these studies for us in the past. Um, in fact, actually, this is the time to say this. So, um, we'll get to a little bit more on the capital project side, but, um, uh, as we've been saying, we've been trying to make utility rate changes to turn what was we were losing money each year in our utilities to break even or or slightly come out ahead. The idea being that we need to get the capital in there. And so the thought has been for a long time we would do a sewer master plan followed by a water master plan. Those master plans would then inform a list of capital projects that we would do and then we would say okay we've got these projects we need to do over the next 10 years. What is the strategy to pay for them? Usually that strategy is a combination of of user rates possibly debt like issuing bonds. uh it could be grants or other uh forms from other state or federal agencies and things like that. Um and so uh the water master plan or sorry the sewer master plan is already underway. Uh we have um a I'm pretty sure we've awarded that or no we're in negotiations with the top u proposal on the fee structure and um the idea would be once that's back we we could develop it. However, because of Paul's engineering background

he has already identified he believes to be 75 or 80% of the projects that are going to come out of the master plan anyway. So we don't necessarily need to wait for the whole master plan to be done to start planning for what project. So what I anticipate doing is hiring this consultant to say okay look at our all our over all operating costs within water sorry within sewer. here's the capital that we know is coming. Uh propose us a model for how we're going to fund all of this and then that portion that's user rates come back and recommend the user rate portion of that and that we will make those changes once we have that information and then once the sewer mastermind's completed we do an update to the capital projects an update to the the funding model. So, in my mind, we get the bulk of the way there with this this first study and then it's a minor update when the full master plan's done. But basically, we know there's a lot of projects that are unfunded. We know there are other projects we're not aware of yet that are not funded. And so, um let's not um wait longer than than we already have. And so, um, what I see us doing is is getting these, um, recommendations back from the consultants. Um, most likely that will come after this year's budget's already adopted, but it could be it could be this summer, could be this fall. I don't have a timeline when yet, but then we come back to the council and say, do you want to consider these now? Do you want to wait till July 1st next year? Um uh we will cross that bridge when we know what the information is, what what we're what we're dealing with.

Um so that's the sewer master plan. Where do you see then the water master plan? So the the goal has always been to start tackling the water master plan either as soon as the sewer master plan's done or when it's underway and there's less management needed from the staff's perspective. So they have the capacity to do that. And so that'll be a judgment's call, but sewer was first and and water comes second. And I while there are major projects needed in all, there's a lot more needed than sewer. And so that's that's the one we're doing first. So what kinds of things are included in the sewer master?

You'll see. We'll uh we'll we'll get to that. Uh so another big driver of costs uh especially in the personnel costs are uh health insurance. So, health insurance personnel cost largest budget drivers significant increase across departments. Do you want to talk? I can Zach can give you better numbers. You want to describe what we're seeing in insurance and John type in if you want.

Yeah. So John, correct me if I'm wrong here, but um the insure the so John went to the CIS conference within the last few weeks and the the numbers that we got back for insurance are if we need to if we want to keep the plan that we have um we are looking at a 20% increase for health insurance. uh they suggested a um scaled down plan where there's a right now we're on an 8020 um co-pay plan. They want to scale everyone who's got the flexibility to be able to do that down to a 7030 plan um along with some some other scaled down provisions, but uh that would keep them at 13.6% for an increase. So it's not like you're you're not avoiding an increase if you take the scaled down plan. The the issue that we face is that we are contractually obligated uh in the general union at least for a certain plan. Um with the

certain benefit with that correct um with the public safety union we are on the heels of or on the I guess on the front door of um negotiations. So there's maybe slightly more flexibility there, but um but for the general employees, we're looking at 20%. So So the answer to that is the summary is a a 20% increase to keep things the same or 13% increase to have a significant reduction to have a to or reduced benefit. So that's realistically

negotiating a reduced benefit for public safety when everybody else has the other benefit. Well, one note there is that they've got they've got a different a different health plan altogether. So, they they switch to a high deductible plan. Um the rest the other plan is a traditional correct. So, um it's it's kind of an apples to oranges comparison, but um at the same time, I don't want to get into a bidding war where each union says, "Well, they got this, we" and we just go back and forth. And so, we kind of want to treat each as their own independent while at the same time recognizing we're all employees of the city. So, is this insurance that's negotiated through CIS or is this outside of CIS?

CIS. What are the options outside of CIS? There are options. Um, we've not gone down that road. We've maintained presence in the pool for a long time. That would come with other factors that go along with that kind of a

typically when you're less than a 100 employees, you're better to be pulled with the larger pool than to go out on your own. There are times where it may make sense to hire a broker and go out independently, but usually you want to have more because at more than 100 employees, you can start to get details on your claims and the usage, more details than you're allowed because there's more anonymity and so you can negotiate better deals. Now if we know we have a lot of claims in in our system just because we know people um that's also reason not to go the other direction not to go independently because that may end up being more expensive.

So is the 20% of the the amount that everybody that is insured through CIS is going up or does it dependent upon insurance factors that are within the city? So the the the 14% is the number that they announced at the conference to say hey cities counties that are in poolled resources which we are because we're under the 100 employees that basically was the not to exceed 14%. But what they've told us because they know hey in some situations employers have like Zach pointed out contracts that say hey you're going to have this plan then we found out that we can maintain that plan for plans like that for at a 20% increase. So but by and large the message was 14%. However if you want to then you could go that direction. Thank you.

Um so these costs that are personnel so we've built the kind of the personnel model. What will it take us to employ the same number of employees um next year into the model uh um into into the budget. They're not really discretionary especially where we have uh union uh contracts. Although as Zach mentioned the public safety one uh is up and we have those negotiations um scheduled transient lodging tax. So this is where significant work was done um with the legislature uh really in the last two years last session and this session um and the big benefit to us is we are going to see an increase of about $182,000 coming to the city. that is transit lodging taxes that will now be discretionary that we can use within the general fund that previously used to be um uh limited to tourism facilities and tourism promotion. And the good news for our city is because we've funded those part the convention center and the visitor bureau so well um and we've had some excess for their needs is that we can make that change to the general fund without uh affecting the convention center or the visitors bureau budgets. Um that's not the same with other communities where um they will I I anticipate or at least the destination management organizations that there are DMOs largely anticipate cuts in their funding this next year because of legislation as cities choose to spend less on tour tourism promotion and more the focus elsewhere. Um I will say I think the argument we've made and the mayor testified um I think at both the house

and senate committee meetings um what what our focus has been is there are impacts due to tourism uh beyond uh what we're capable of providing for under the current transit lodging tax and so we wanted more flexibility. I don't I would say I think our our position city is this is a good step, but I don't think we're still all the way there. I think we would like to ultimately be able to um affect well use transient lodging taxes for all tourism impacted services. Um and right now I guess the flexibility is there but I don't think the dollars align. Has the did the definition of what is tourism related get broadened at all so that we can use it a little bit more?

No. And I think that was what our county was pushing for when they were lobbying was to change the definition to be tourism impacted services and um the push back was to know keep the definition the same. I think I'm guessing the thinking there was it would be too easy to draw some sort of tie to tourism and then the floodgates are open for anything. And so um what was proposed was 60% going to um general city purposes and 40% going to tourism. And then that was uh negotiated down to a 50/50 split. Uh I know mayor you were at the center of it. Uh, I don't want to put you on the spot. Is there anything you want to add to that?

No, you covered it fine. Um, this, you know, this this project or this change has been going on for years and we finally got it through uh making the adjustment down to 50/50. So, you know, that's not as much of a help to us as it might have been, but at least it's something. And there's, you know, still some things to look at going forward. So, we're happy with it. I don't I don't think the top is done yet. I think Orla thinks it is, but I don't think it is.

I should add to that, and correct me if I'm wrong, mayor, but the 50/50 also applies if it's ever increased. I think there was a push by Ora to say the increase has to be subject to 7030 splits remain 50. When they came back with the 50/50 they said okay that's for anything up until the law passes but anything beyond that's back to 7030 and that was not going to happen whatsoever. The other thing that's nice is that any funds that have been accumulated over the years from transient lodging taxes can now be subject to the 50/50 split and not spent. What's that?

Accumulated and not spent.

Correct. So let's say over the years we've collected a surplus of transient lodging taxes. Let's say we've spent our whole 30% and the 70% we have spent on the visitors bureau the convention center and there's been a remaining amount. Now technically that remaining amount was part of the 70% that was supposed to be for tourism. So you could say of that balance 100% of it was supposed to be set aside for tourism. The way the law says is of that balance 50% can be used for any purposes. And so we we're going to talk a little bit about that through these these budget proceedings. Um we have also looked at it and said um it is better for us to wait to spend any of that until after January 1st. Remind me again how we got there.

Yeah. None of the none of the transfers typically happen till the end of the year. So, um, if we if we go about the the transfer of transient room taxes pre, uh, pre December 31st, we're still subject to the 7030 split because the the legislation doesn't go into effect until January 1st. Given that we we don't transfer anything until the end of the year, we are now covered under the new under the new legislation. And so anything that we transfer at that point can be 50/50.

And I think I would I would add to that that kind of my thoughts have finally caught up with what I was saying um is we wouldn't want to take on any um tourism uh related project. No, not we wouldn't want to take on any of these projects prior to January even if we can because that is going to increase the amount that we have to save for tourism. Is that right? You and I have to talk about that after because I'm I'm having trouble wrapping.

Yeah. Anyways, we figured out that it is in our interest to wait because we want to we want to we right now if we spend money this fall it's subject to the 7030. Oh, let's wait, keep it in the account and come January all of a sudden we have more money. So, if we spend it, we've spent it down and the 50/50 split is different on January 1st because that balance is different. So, we figured out it's better to wait. Are you saying the law doesn't go into effect until January? Correct. Yeah. That's really a long time. It's longer than most laws to take effect. No, thankfully we have we have the available cash flow to be able to float it until that.

So, it's not it's not going to affect us operationally. It's more of a a logistics issue on my end than anything else. The law itself actually goes into effect um 90 days from yesterday when the governor signed it. Uh she took the full length of time before she signed it. The law itself is written so that the change happens July or January 1st. Got it. Law is in effect. It just says you can't do it until January. Or the law will be in effect in 90 days. I guess that's a better way to put it. 89 days. 89 days. Okay.

Just who's counting? Just because it's not So say you have $10 million in savings, right? So you have some Uh so that was seven 70% of the that was accumulated from the 70% side. Yeah. So you get to take 50% of that instead of like 29% which would be

So I think saying that helped clarify my thoughts. Let's say we have $10 million saved up. If we spent a million of that this fall on a tourism project, we now have 9 million to divide up 50/50 in January. If we don't do the project, we now have 10 million to divide up. So, we want a larger balance on January 1st to divide up 50/50 than a lower balance. So, delaying any um projects that that can be delayed uh that would use some of those funds is in our interest.

Okay. So, I think we've talked a little bit about this. our our strategy. We want to align tourism revenue with tourism impacts. Um let let me back let me go actually back one slide going back to something we talked about during the legislation. Um I think our I think we've gone through some different phases of um tourism promotion in our in our community. So at at uh in the early days, we're talking several decades ago, it was let's bring more tourists to seaside. The last I don't know 20 years, John, the focus has been let's bring more tourists to seaside in the shoulder and off seasons. That's where all of our marketing is. And in fact, really that's going back to the 70s too because that's when the convention center was built and that's one of the main purposes is let's let's fill people in the city during this. uh that doesn't go away and we are still marketing especially for those shoulder and and off season but I think it is a tourism management mindset rather than just get more people here and the way I've thought about this is um and some of you who are are are more in the business world you know correct me where I'm saying it wrong but you know it's it's better to keep a customer than to try to gain a new So our focus should be improving the tourist experience while they're here in seaside so they're likely to come back rather than always trying to get just new people but maybe they have a poor experience because our roads are all mangled up or or things like that. I think the other benefit to that is by investing in infrastructure that supports tourist experience, it's

also an investment that benefits our residents. So why not focus some of these these extra funding on a win-win scenario of something for both visitors and our residents? And then I think finding ways to um to show some of those benefits to our residents, things that we we would not otherwise have if it weren't for these transient logic taxes. So maybe when they are sitting in traffic on Highway 101 in August, they can look over at the North 40 Park with a sign that says, you know, constructed with proceeds from transit lodging taxes and they think, you know, okay, I'll sit in traffic in August so that my kids can play baseball in spring or something like that. I don't know, maybe that's maybe that's a pipe dream, but that's kind of the idea is is let's find ways to use it that benefits both. I think another thing about keeping um keeping the customer you have and bringing them back again and again, they become invested in our community as opposed to the oneoff that's here and gone. They have no personal investment in um how how they act in our community, how they treat the amenities in our community. But the people who return and return, they become some like like owners. They they become invested.

Some of them may be Yeah. What do you say? Some some of them. Some of them. Yes. Some of them are not and some of them move here. Some of them aren't happy with proposed fireworks changes. Well, I'd say on that as well, you know, a lot of us are elected that are on this budget committee and that's what our residents want to see is they want to know that we they benefit from tourism, too. So that that helps not just u you know the tourists but it helps us you know stay elected and actually deliver for our constituents. So that's really important to me.

Absolutely. I think I think everyone's understood many of the jobs you know we are a tourist economy and many of the jobs that is a driver. Um but if you're not working in retail or a restaurant or a hotel you know there's a disconnect there. there is we understand there's a benefit but let's give them the benefit they can see and use and I think that will uh help uh on that uh that kind of natural conflict well I would take it even further even if they work in the tourism industry they still expect something else out of it they expect for the city their benefit yeah absolutely

um so u what we have done in this uh in the recommended Ed budget is to um put the investment of new funding into uh streets and parks. So what you'll see is um of the balance that um has been built up in transient lodging Texas that can be spent on anything. Now, what is currently put into the budget is half of that going into parks construction, half of that going into street maintenance. And so, the idea would be to um be able to fund the North 40 park construction with those dollars and then um put the rest to street maintenance. So, the pavement preservation report said we needed about $21 million over 5 years to fully fund our streets and we had like 8 or 9 million at the time or something like that over a 5year period. And so, we would make uh that investment into there and I think you say it gets us closer to 15. Anyways, it gets us a lot closer to what we need to be in order to get our streets up to a condition where in the long run it's going to be cheaper to maintain. And so in addition to that um new ongoing revenue um is this budget proposes that it be put into streets and I will say streets will be a major focus and in fact there's a a multi-prong approach where revenue is coming in from at least four or five different sources to to fund um street projects. Won't the the um building of the parks also qualify for some funding of of the tourism side?

It may and to that extent that we can use it for that. We'd have more money for for streets, right? Um at the same time, what we don't want to do is deplete that to zero and have a major capital expenditure of the convention center, right? The convention center um is dependent on people having a good experience. So, their technology has to be cutting edge. They have to have the things that will have um the the people return.

How are we picking specific projects that we're going to prioritize this? Well, the streets, the parks, I know we have a lot of restrooms that are dilapidated. How are we going through that process of picking? Uh um we have some proposals in here and that's what this budget committee and what the city council can choose that that ultimately that'll be your prioritization.

Um see okay business license revenue proposal. So currently by ordinance 100% of the business license revenue um is transferred to the visitors bureau. From the visitors bureau a portion of that then goes to fund this what the city contributes to the chamber and to the downtown development association and the rest remains to for the operations of the visitors bureau. So I'd say it's about half of their operating revenue comes from business licensing, half comes from transient lodging taxes when in fact 100% of their operations is eligible for transient lodging taxes. So what we're proposing in this budget is that uh we accompany it with an ordinance change that redirects business licensing to the general fund or keeps it in the general fund. and uh allocates more of the transient lodging tax to the visitors bureau to replace uh those business licenses. So their budget doesn't change. All that happens is we're spending that extra about $400,000 in the general fund. So altogether between this and transient lodging taxes, we're looking at about $580,000 that we want to put towards infrastructure, namely streets and other projects. Can I make one note uh on that on that note? Um in your budget book, the revenue from um business licenses is still in vis in the visitors bureau. It can be moved by council resolution to the general fund uh upon the ordinance change and that does not require the budget committee coming back into session to do. So just make a note that that's where it shows in your budget book. I can move it if the if this body wants me to, but um that's where it shows for now.

And that's the recommendation that we would we would encourage. That's a council decision, but we encourage the council to consider that. Isn't the business license revenue variable yeartoyear? It's pretty consistent at this point. Um our with our system getting better, Ry's very diligent about calling around and saying, "Hey, you haven't paid this yet." Um it's been it's been pretty consistently about uh 350 to 375 it looks like. Um but a portion of that's already dedicated to other places.

So you already know how much you want to take out of TLT to go to a visitor bureau. Uh that would replace dollar for dollar. Yeah. Um, the other thing I'd say, and this came up earlier this year when I needed to do a more deeper dive into business licensing, um, because I think the question came up about, um, regulating some of our businesses through the business license. This is kind of for for your information only. I won't take you on the full down the full rabbit hole, but

Oregon law allows us to charge business licenses for two purposes. The purpose is either regulation like we want to regulate this business and one of the ways we can regulate them is through a business license. Uh an example of that may be taxis. That's a common thing for cities. And the other purpose of a business license is for just plain revenue generation. And when you pass the ordinance, it has to specify what you're doing it for. Now, you can specify it's for both. Um, I did go back and look at the ordinance that's currently adopted for business license and it specifically states this is for revenue generation. So, um, that makes sense because we wouldn't be regulating our businesses out of the visitors bureau that if we're going to take the money in to regulate businesses, we would give it to whatever department is going to be charged with regulating, but we don't engage in that um, with the exception of short-term rentals. So there is and that's the one where it's a little bit different and and that will continue as it always has been but for the general business licenses for revenue generation and so um that's that was always its purpose and um and that would continue to be but it would be helping in general fund. Okay. Uh, I don't want to beat a dead horse or a broken street or whatever, but we've talked about these capital investments. We'll get into a little bit more in detail. Um, okay. Well, let's go through some of these budget requests and what is is included. So, we include all the budget requests for you to see. uh because I think it's important that if one of our department heads say this is what I need or this is what I want or whatever their

rationale is that you're aware of that even if I've re not recommended that we include it. Now if I'm recommending if I'm not recommending it to be included in the budget it's not because I don't think it's a valid request. It is everything's about prioritization. So funding one thing means not funding another thing. Um, uh, there's never a world where we just get to fund everything and so I'm only trying to identify what is a priority. Is this in the budget packet? This is not in the budget, but we can email it out to you. And the slides that you just went through, they're not in the budget book either. We get those as well. Yeah.

Thank you.

Um, okay. So, uh, community center, uh, repair parking lot. A lot of this will we came back to what Paul uh he had a work session with city council um maybe six weeks ago or so. Um the project is already underway but there will be some additional costs. We have a flooding issue for whenever it rains like a third of the parking lot unless you have really deep boots on you can't use u the request came from the so uh let me point out I don't know where can or can't stand one over here is included a zero is not included um the community center commission made the request for a um emergency generator for the building we put those costs in there that was not recommended to be funded but again this is just where you guys get to discuss what you want it to be. I am including some uh budgeting software because um we can save a significant amount of tax time and staff time and not need additional staff resources um with that. We can go into more details later. Street light conversion. Um I think Kim's not here. Um uh actually I think it is this next council meeting. So I think this next Monday.

It's on there.

Okay. Yeah. We're have a representative from Pacific Power is going to come and they have some rebate programs where it's in our interest now to um change our street lights from the current um technology to LEDs. uh that will have significant ongoing savings and there are some rebates to get us started and there's a return on our investment of about three years to break even. So, it's kind of a no-brainer to take advantage of that. Pacific Power is encouraging us and we think it's a good deal. Most of the requests, in fact, most of the requests you're going to see are the significant costs are are one-time costs. Can I ask on their presentation, are they by any chance going to bring us some samples of the lights because they've already replaced some of the lights and they're too bright.

Um, I don't know what they're presenting, but um I think if you have questions, send them our way so they can repair it. I know we did um it's Jessica Newh Hall when we did give her a heads up that this is a question. had some discussions or some questions about um dark sky regulations and keep you know so u and I'm sure color and brightness and things will come up.

I the the bigger idea is is at this point is funding for the project in general and at some point whether it's this next meeting or not we can get into specifics of color direction stuff. On that note too, I would be curious. I I don't know that they're replacing the current street lights with the street lights they're proposing. Um, they are they are already the LEDs. Okay. Okay. Well, disregard and on Downing. Okay. On the prom 7th and Prom. Go down 7th Avenue between pro prom and Franklin. Too bright or too dark?

Too bright. Well, there's the prom they've hung a diffuser. So, the first half of the block is black, whereas the dunes and the prom are nicely lit. And we will get into exchanges where one person says it's too dark at my house and the other person says it's shining in my window. So, that'll be a fun process. So, what's the cost to the city now when those lights burn out and they have to replace them and they're replacing them with LEDs? They're doing it all now. I don't know if you know the details. I don't I don't know off hand without looking into it and researching more. But we were also paying the power cost for those lights. I think that's where the savings over time comes in.

Savings was like $7,500 a year or something like that, wasn't it?

I think it was I think they estimated 18,000 a year. Um, so that is the three-year if we've only got a pit put and let's I mean 60 is conservative, right? It may be a touch more or touch less than that. Um, but at an $18,000 estimated savings a year, which again is also their estimate, could be more, could be less. Um, it's a pretty quick payback for a an update to our infrastructure. I mean, I guess my question there is how much of that cost is currently cost that they're bearing that they're switching over responsibility for when if they're switching out lights now when they burn out and they turn them into LEDs and that's their their mode of operation. And this model then shifts a lot of that cost burden onto the city. It's to their benefit to convince the city that this is what we want to do now. Sure. If they're already doing it, where's the mutual benefit?

Because we pay because we pay the monthly power bill. Right. Yeah. But I think she's talking about the cost of the monthly lights.

Right. Right. So the cost of the lights is $60,000 and we save that. So we're not going to if they replace them peace meal, they're not going to be replaced over three years. And so the idea here is that we will see the savings and come out ahead sooner than we would waiting for our peacemail approach, but I'm waiting for the full presentation. I've only had a few email exchanges, so it's it's enough there that we thought, let's put this in the budget. um public safety. Um I will say and you're aware there are some discussions going on about a possible uh countywide dispatch consolidation and so we are holding off on any projects including ones currently funded that would be funding something that would be part of a consolidated dispatch district. Um there isn't anything requested in this year. Um but there is in what was already adopted this year, but we've hit the pause button. I know Zach, you and I just looked at the communications this it's software and we looked at yesterday.

Yeah, there's a there's a new AC unit for the server room which which I know councelor Venker will be thrilled about. Yes, councelor Venker. There are improvements to the server room at the police station and then uh a generator annunciator which I am not a

okay that thank you for that. So uh the last major power outages we've had the police station's generator has failed to kick on and so we've been on like half hour 45 minute battery backups for a dispatch and so um we have had someone working on it. Um there is a budget in here to further add to the generator system so that it doesn't take a manual inspection or a check but basically we are alerted if there is a problem and there's an always ongoing status of that generator. It's probably the most important generator we have at the city. So um patrol laptops. So this goes along with some of the other changes in the CAD software that the police department uses and um there's a broader discussion here. Um there is a there will be a shift on how police work is done a little bit right now and this this does affect affect dispatches as well. right now. Right now, you're a police over. You you pull over someone. All of your communications is is uh back to dispatch. So, you're communicating what you're doing. That would continue. I need you to run this plate. I need this information and whatnot. A lot of and so dispatchers are doing that in addition to dispatching. What will start happening is the officers will be doing a lot more of themselves. And so it's going to decrease a lot of the um dispatching traffic that happens, but the officers will do it a little bit more, which I think is standard and has been the standard practice in most police departments for a long time. But I think um for more of the rural police departments were getting caught up in some of it was dependent on the previous changes. So um we have a significant in uh um budget amount going towards new

laptops uh and these have to be very rugged books. The idea will be each uh police officer will be assigned one. their vehicles will be outfitted so that they can dock their their computer when they're in their patrol vehicle, but when they get back to the station, they can undock it and and they will have a series of docking stations where they can come in, dock their same laptop and and do reports. So, we're going to get away from having a whole uh room full of shared computers. Um and so where the increased is coming now. We will see a reduction in other computers later. Um there was a request for a new ambulance which you can see is very expensive. The one we bought was very high mileage and we got for a screaming deal. Um and it was really kind of a beta test. Let's see what we can do. Um um let's take a soft launch into the ambulance business. Um they've been doing uh double or triple the number of transports than they originally medics thought they would do. Um uh but and so if there is a need for a new ambulance, that being said, um we're not currently recommending we purchase a new one. That would be great if we were jumping both feet in in full-time ambulance service where we had a contract with the county to provide it. who weren't reliant on being back up to medics and we were staffed to do ambulance transport around the clock which we are not. So right now this would be a from a financial standpoint it's hard it would be we wouldn't be able to justify it'd be like buying a really expensive piece of construction

machinery and using it you know once a week whereas a contractor is using it you know 12 hours a day or something like that. They're getting the value out of it. So we'll continue to look at uh the it is still going now. uh it is very high mileage and we will look at if there are other alternatives that's not just a new you know half million plus uh piece of equipment um uh and come back as as those develop. Is it breaking down or what's the it's been in the shop quite a bit. Yeah.

But you know our our agreement with medics is that uh we will respond if we are able to. So there's both a cost consider a revenue consideration and a service level consideration. I think one of the downsides has been well they don't necessarily the owner doesn't necessarily like us running too much because it feels like it's money out of their pockets. At the same time they they have been very short staffed and will often leave our side of the county less staffed because they know that we're the backup and that's we don't think that's an ideal situation either. We think we should be an additional bonus to our community and not the uh you know a second tier or something like that. Uh fire pump tender. This is the uh the new fire truck that was is being purchased through the levy and this is the full payment becomes due. Is that correct?

Correct.

Yep. That this is more of a placeholder for me so that I didn't forget it. Um, this is the the pump vendor that they they ordered a couple years ago. Um, we do need a new lifeguard tower. Um, the one we currently have, I mean, you can imagine what the elements are like. I think they had to weld pieces together to keep it from falling apart last year. They are not cheap. Um this is uh sign they found one significantly cheaper than they originally thought and one of the ways they'll be they'll be purchasing that is um we'll be purchasing it together with Canon Beach. We're the only two communities that provide lifeguard services on the coast. They need a new one as well. And so um we have a purchase order from a vendor to purchase I believe two, one for each community. There's some savings to the the unit we're purchasing and some savings by grouping them together. Did I miss anything there?

PLT funds paid for this? Yes. Good question. So, because I was surprised to see anything from the fire department here because when we had our last meeting, they didn't come and make a presentation and we were told that they had no requests. So, I was surprised now to see four things on the list. is part of this because the pump tender maybe that's money that we already knew we were going to spend so it's not new tender was already approved by the council but we're going to be spending it in this year but the lifeguard tower is new and I think it's just

yeah that that was a a last few weeks item um what they what they thought they were going to have to do the there's another vendor that they found that's down in California, but they had a two two-year waiting list. And so, but you're telling us it's already been ordered. Does that mean that it's going to be here before this current year? We have a purchase order. You have a purchase order. So, is it going to arrive during this fiscal year? No, we can't. Well, we have said we cannot purchase it in this fiscal year. We have to purchase it no earlier than July 1st next year or sorry, July 1st this year.

Correct. So the ambulance um where what was it may just be because we all knew I think this was we're bringing this to your attention. I think there was an understanding there we're not necessarily buying an ambulance this year. That's why you had a zero in front of it. Yeah. Right. Uh and then the I think the you talked to Joey. Yeah. The lifeguard vehicle they they bring those vehicles. They they often times get handme-downs from the from the police station um or from public works

or from public works. They're not necessarily the best vehicles to go down on the beach and the beach is very very hard on them. And so um Chief Daniels wanted a little bit of of budget in case he ran across something that would work down there. If you do come across it, let us know. We'll address it then, but we can put it in the budget. Correct. because they just got a a new F150 that has four-wheel drive. It's an old police vehicle, though.

Public works. Um, so this continues, I think, uh, a theme that I've been kind of um, uh, working under here, and that is I think public work among all of our departments has been the most underfunded in in years and so um trying to get them up to an equipment level that is adequate for work that they do the work that they do and looking at things that make their operations much more efficient to stave off requests for new personnel. So many of the things here are to either u preserve the equipment we have or to provide equipment that helps them do their jobs easier and faster with less work. Um uh so we don't see personnel changes. So I'd rather invest the dollars we we've saved up to do that so we don't so we can forego on costs. So a couple of years ago the city council budgeted how much was it for the storage building? Was it 400,000?

I want to say 300, but

three or 400. So, if you recall, um the goal has been to get our equipment out of the elements. And so, I think it was a pole barn contemplated to go behind public works. We then made the change, I think the right change to move our homeless camp there instead. And so, we're looking at other options. And I think did Paul show this to you in his presentation? So the idea uh an economical idea is and he had some examples of that and we can bring them back if needed is to get you it's a design where you have two conic storage boxes and then you are able to have a roof between them.

So some of them go can be parked inside and some under that. And so um that is um an effective way to get the equipment out of the elements. at a much more economical cost and I think a smaller footprint or we can have multiple of these which means um it'll be easier to site on the property we have possibly on the aldermill sites unless we we sell those but um uh I've continued to push them to work on a site plan master plan the whole public works property before we site anything

um let's get everything master planned so we don't come back later and say oops we put it here and now we need need something So, um, heavy equipment add-ons. This is equipment to go with our our back hoe and other heavy equipment that we have again to make some of the maintenance easier. For example, one of them is a brush cutter that you can put on that will cut a big old wide swath, you know, 12 feet wide uh to do the sides of roads, uh some areas of parks and natural areas. Again, the guys are out with

Right. Yeah. Right now, we contract that out or Yeah. they use weed eaters to do this work.

Again, an investment to cut down in the personnel that we need. um the north dumpster station. So um for those of you familiar with our sewer treatment plant, we have the dog kennels on the north end of the property. Um right next to or in I can't remember. I think it's next to what used to be some sort of um dumping system where it slants down and you can and you can uh deposit track. There's a there's a ramp in there. In any case, uh Paul's plan here is to instead of for our daily trash runs on the prom and downtown, instead of going back to public works every time is that we put the dumping station instead of behind public works, we put one at sewer treatment plant. So, we'll be able to get a lot more done in less time and it's already built for that. It has the required environmental things for protection. That's what it was built for. I told him he can't just replace the dog kennel with what he wants. And so he's also, I think, included in there um a a an updated kennel um that could still be at the same location, but um on a different side of it. And again, I think looking at using a um ConX box with kennels built into the ConX, but he has a better idea for that. Um and I'm supportive of that. Uh the swap loader box, this is just something we the old street sweeper, we've converted that to a swap loader where you can put different um beds on it, for lack of a better word. And this one would have a higher carrying capacity. So for making runs to the dump or other things like that, it's

just less run. So again, trying to reduce the physical manh hours and things that they need to do. Um and the same goes with the truck upgrades. We've made a whole bunch of purchase of trucks. And remember again, what was in the truck upgrade? I know we just looked at this yesterday. Oh gosh. Um that with some of the other there was a budget, a request for an office remodel. It is warranted. We're not recommending it at this time. And there is a request for a trailer for a fuel tanker. We do have one already today. So, a trailer that contains fuel so you can take it out to a site and fuel something. I think the one we have now is a diesel trailer. Correct.

Uh so if we have the backo somewhere, they would like one that's diesel and gas. We said that's good, but it's not it's not uh on the same priority as the other requests. So, the the upgrade to the trucks was um add uh lumber and pipe racks, light systems, generator systems that could better meet uh the fleet needs during emergency repairs of major projects. So, part of that is less runs back to public works for inventory and supplies. They can do more when they're out on the job site. It's safer to carry them that way. Right.

Again, we're just I think we're just trying to get public works where they they needed to be equipped. Convention center. Um the upstairs bathroom needs to be remodeled. It was not part of the original um

remodel of the convention center. And so, um, it's in need of it and we do not have, um, handicap stalls in them. And so, that would be part of the upgrade and we would do it to match the rest of the the convention center. Um, we have a kitchen oven replacement um because the one now if we plug it in and use it, it trips the circuits and we lose power. And then we have a a conveyor dishwasher that's 30 it's is it 27 years old. It says

27 years old. I was going to say if it was original. It's not original to the convention center but it's 27 years old. And so um it's a major cost but um these are all being funded through transient lodging taxes. Visitors bureau. Um so uh one is to um is some funding to make some changes within the department to add some capacity to do some community marketing. Um and then the next three were all recommendations from the tourism advisory committee. Uh so one was to um uh move the or sorry it was to provide accessibility to the north um visitors entry sign. The original request was to build a path to it and working with Paul I think they've come to an updated conclusion. It's better to move the sign than build a path to it to be closer to the existing parking lot.

Um, there's also requests to update the signage by the chevron at the Y intersection there. And I don't know who gave it that name, the Russ Vanderberg archway over Broadway. I think all ideas to explore, but let's do one project at a time and come back to the other ones. I don't think it's supposed to say Russ Vanderberg. No, I don't think so. But um I think it was something for the record, the archway has been discussed for 20 or 30 years that I know of and it's a recommendation from keeps coming back. It just keeps

I will say this, I think at some point it would be great to bring in experts on downtowns and downtown main streets and come up with a master plan for Broadway. And if that included an arch that was incorporated into the overall aesthetic, fantastic. I would hate to do a oneoff in isolation. Well, that's the Main Street USA program, right? But there's also funding through DLCD and their transportation growth management to do a downtown development plan like that. Great. That's great.

Those plan those grants are about to become I mean the pre-application period is open right now. Of course, we have to figure out what's going to happen to any Broadway before you do anything, upper Broadway, lower Broadway.

Okay. And now you're going to start to see where we're at with with water and sewer. So, uh, again, Paul went through this. Um, so I won't go through them in their entirety. Um, water main waterline rehab million dollars. We have one point of connection between our water treatment plant outside to the south end of the city and the city and we had a break in it this year. And so that's a um flaw point in our system. And is that right? There's a zero there. You're not going to do it. We don't have the money to do it. Okay. I wondered why.

We we uh we are we are low. So, um, then there's the pipe bridge that's in our watershed where that's starting to, you know, it won't take much for that to come down. The pipe bridge, it needs to be rebuilt from 850,000. Um, the uh, Avenue U Bridge water line rebuild. So there is a water line going through Avenue Uh that was abandoned. We don't know why some time ago and so that's one less piece of redundancy. Uh, so I would say this, this is where Paul says these are all obvious problems that the master plan's going to identify as projects needed. And so we don't necessarily, they're not necessarily funded, but we can have them on our radar and to look at funding options. We don't need to wait for the consultant to come back and tell us, oh, you need to do these things here. And I guess I'd be very interested in understanding the risk level on not doing a water a main waterline rehab. What are we at risk for? How far are we at risk?

The risk Yeah. The risk the risk is a break in something that's out for a significant amount of time or even is uh can't be repaired and and something else has to be done. I know the water line rehab is to I think basically slip line. So it's a concrete line. They come in with a with a plasting. They pull it in and then the current water line becomes the protection for the new water line. Uh let's see. Till booster station rework 25,000. That is we have a giant booster pump at the cove just to push the water up the hill. It was way overengineered. We're paying 10 times the amount of on on power that we need to with a much smaller thing. And so we make that change. We we'll earn that back. Uh Pier Point valve station rebuild. Um when we had the water line break this a couple months ago, they had to first find that valve, which hadn't been used in a long time, close it, which was very difficult to do. It needs to be rebuilt so that we can more easily work on the line. Um treatment plant SCADA upgrade so we can be reading. So SCADA is so the ability to to remote read and um I'm having reports on the infrastructure replace the water intake access bridge 750,000. That's the one that's got trees growing in it. um pallet jack up at the water treatment plant. They move around a lot of chemicals. Um I don't think they have a power uh jack. They're just doing it by hand. And so just to avoid an injury that will save us there. Um we are

funding that because that's one we actually have funding for. Uh small boring equipment for equipment for water laterals. A lot of this we can do it inhouse and make these improvements rather than contracting out. Uh south water tank upgrades. I think these were things remember this would be at the treatment plant. I don't remember the specifics on that one. There's a lot here. Uh Pierce Point supply water pump station roof. So most of our water comes from the water shed, but when the flows get too low, we pick it right up at Peterson Point. And so we do have a pump station there. So putting a new roof on that um new door at the

Yeah. Was that a is that a zero because the the uh our staff can do the roof rather than us contracting out? No, because we don't have the funds. Okay. All of all of these are zero because we don't have funding for it. Okay. Now, if we refine our numbers and we have more money to do it, but we have we have whittleled down all of our reserves and water and sewer.

Also, as I'm looking at these, a lot of these are perfect targets for grant applications and are we looking at this from the perspective of let's let's know enough about this, write it up so we have a grant ready to go when we there's a grant opportunity. And I think that's part of what the consultant does for us is build the fund. How are you going to pay for this and identifying grant sources? Uh so we have utility rates, grant sources, debt. There's all these different mechanisms and that's where they come and say you're likely able to get this and this and this not this and this. Um, the other thing that before we go down the road of any major major capital projects, my first call is to Melanie at Business Oregon who is our you work with us and say, "Here's the project we want to do before we go out and do things. You know, what are what are the financing options?" Like we had on the North Water Tank where we were able to get a loan from the state. It's a low interest loan with a 50% principal forgiveness. What are the options for that? What are the options for grants? And so before we do any of these, that will be a phone call.

Do we also keep um I can't remember his name at regional solutions updated on she is regional solutions. Oh, did she replace? Well, what's his name? Oregon is part of regional solutions and usually will say go talk to this person or go talk to that person. She She's my point person, if you will. You're talking about um Nate Stice. Nate. Yes. Yes. Melanie will know the details more than Nate will,

right? Nate is overall. The one thing too you all need to remember is that the feds have cut back spending on this kind of stuff significantly, which means the state is losing a lot of funding, too. and it's going to be much more difficult uh less money to fight for. Um Spencer did a great job getting that low cost well I think half of it was a grant right forgiveness.

Yeah. And then you know very cheap interest rate on the other. Um the things I'm hearing around the state a lot of people are trying to get grants and they're just not there. uh water and sewer are still the two that we can hope that will be there because those are really needed, but um you know it's is just not the big pot of money it used to be.

There are also some projects that are great to wait until funding is available. For many grants you may apply several years in a row before you're awarded. There are some where we're not going to want to wait on if they are more critical to our infrastructure. Well, the reality is I think there's a lot of cities in a lot worse financial shape. In fact, I know there are than us and so even if we were to apply, we're probably low on the list because we have a good financial situation. So, I don't know if we should really be counting on

We'll see. What's nice is they don't necessarily look at that. Often times, they'll look at our demographic numbers and whatnot. And one of the reasons we were eligible for the 50% principal forgiveness was based on the characteristics of the community and whatnot. Meaning we don't want to put an added added burden on the rate payers in this situation or something like that. One other thing I was going to say real quick is uh I didn't see the watershed access bridge. I know Paul talked about that. That is replace water intake access bridge. Oh, there it is. At least water intake. The one with the trees growing out of it.

Yeah, that's the trees. Yeah. The other one is the pipe bridge. Oh, so pipe bridge design. I missed the one part is for a design and one part is for a the actual rebuild. Yeah, Kathy. Um, another grant source sometimes is your insurance company. If CIS has risk management types of grants and safety grants, I mean, I know it's the smallest dollar amount on there, but the electric pallet jack might be something that would be available for safety grant funding that they would encourage because they don't want to have to deal with an OSHA claim.

I think the nice thing by identifying these project is we see they seem to trickle in. Hey, we've got this program or we've announcing this and that we're in a position ready to go. It doesn't help when we get an email from League of Oregon Cities or states or CIS or anyone else say, "Hey, we've got grant funding available for this. Apply when we've got an idea of a project." And so the closer we can get to ready to go, the more likely really we can apply, the more likely we are to be approved. Sewer. Um, so, uh, we have a little bit more money that we were able to spend in sewer. Um, the top one, um, is the Marlo pump station rebuild. So, we have a whole bunch of pumps in the city. I think we're all ready getting parts off of eBay or something and so we'd like to rebuild them. So, you know, that's even drying up. Uh also I think the rebuilds will make them more efficient and um less maintenance for our people. Right now we have a whole division within sewer that is the collections divisions. We have the treatment division the collections and the collections is just maintaining our pump stations. Um and we are looking to design things differently so that instead of taking half a day to pull a pump um they can take they can do it in a half hour or 20 minutes. Um and that's where um Paul's uh help comes in. More money for rehab of sewer lines. We treat a lot of water that's um coming in that doesn't need to be uh treated. That is one of our that is the the number one reason why we have violations of our of

our um our permit with the state. If you drive on Wanda, the one place where we have the the overflows is uh the manholes uh of our sewer line on Wahana near Short Short Terrace. And that is um the sewer line that comes down from Sunset Hills goes through basically wetlands and we we are basically draining those wetlands into our sewer system. And so we want to go in there and uh remedy that. I'm guessing it's like a slip line too where we can add things add uh add lining in there that will stop that drain from happening. But we want to stop water, groundwater or rain water from getting into the system and needing to be treated. Not only is that add pipe capacity, pump capacity, but less we have to treat at the sewer.

So doing that, what's happening to the storm water runoff? Where's the development of the storm run water runoff plant to go along with the separating it out of the sewer? Where is it going to go? because there's also ground deterioration happening because there's no storm water runoff plan that is being because it's being absorbed into the this is

uh that's not something we were looking at. I could talk to Paul about. Um the area we're talking about is well I I couldn't tell you. So we're talking about the the east side of Wana. I don't know what that drainage storm drainage looks like. I mean ultimately it's the river. Um, I don't know what happens if we stop draining it, but I'll let the civil engineer tackle that question. There's a wetland back in there, isn't it? And it's for sale. Um,

uh, lift station 3 new generators. One of the things that one of the goals is to get generators on all of our lift stations. So we have 27 lift stations throughout the city to basically get the sewer F1 all the way to the treatment plant during a power outage. Some of them have uh generators. The one on Wahana has a World War II uh trailer generator. Many of them don't smaller ones. And so our staff during a power outage is basically going around with a generator

one at a time to a pump station, hooking up to the generator, pumping it down, then moving to the next one. And again, we'll be much better off with automatic generators and all them sized appropriately. Um the UV system uh likely needs to be replaced. um the clam shells. So he wants to design a standard format for our smaller lift station. So instead of having random sizes and parts, standardize it. So we have the design for that. So a new one goes in, it's exactly the same as the other ones, know exactly how to maintain it and work on it um to the point where we can even have spare ones on the shelves. So a pump goes out. It they pull it out, put the new one in, and go on and they can work on the the pump. bypass ports. This one we are finding it's a smaller amount but right now if we have to work on a lift station they were not designed with bypass ports. So um a bypass port you can open up and work on the lift station uh with a a pump attached that's basically pushing it around. U I don't know how they do it now. I think Paul's told us, but

I think they use the vacuum truck to vacuum

they'll empty it, drive it, deposit it in the next man, which again just not a good use for time. Um, putting in some better Wi-Fi and then cameras, more security. That's the fence as well. The sewer treatment plant need a new flow meter for uh erration baseration basin too. um we don't have so part of it is fixing some of the fence, part of this is extending some fence where it doesn't exist. Uh putting in new gates, an upgrade to the sewer system so more of it can be controlled and monitored remotely. Oh, and this is where he's got the kennel re location. I was thinking it was part of the other one. Um and that will free up space at the sewer treatment plant. Why is kennel relocation considered a wastewater e uh expense? Why? Because isn't the kennel part of um public safety

service of public safety? I think what it is is it's located there and sewer wants to be using some of that and so it's kind of on sewer to move it. um it um we had a major review with our um contractors uh our IT contractors um for our computer equipment. We have many older ones out there that are needing replacement overdue and so they've put together um I think it's it's high this year. Um but we will hopefully it will come down and we're going to get into a better uh computer replacement model. Um, right now we have kind of a hodgepodge of of computers, but we're designing it so we have an entry- level computer, a power user computer, and things like that. And then a regular rotation. And what seems to happen is we'll say, okay, this one needs to be replaced. Oh, but it's still got a little bit of life in it. We'll repurpose it for this over there. And then it is maintaining that older computer longer than it was ever intended to. when we proliferate the number of computers. So, we want to uh I think streamline that a little bit more and when a when a computer is done, we're done with it and we're not going to keep it on life support for a few extra years. Uh and then last one is at the airport uh is the burn project and new wind socks. Um we're not recommending that now. It's a significant cost. Not to say it won't be done, but that would be one that we may look for grant funding or um other sources. And I know uh met with councelor Baker recently who's our

liaison to the airport. And so um she's been working with the airport committee and we are looking at um other um alternatives and options for the airport that when we're ready will come back to the to the city council. Can you go back a slide before you go forward? So on here, the kennel relocation is not funded, but where you had it previously, you said it was. I think I think I would assume it was in the other thing. So it's not funded, right?

So you've got the space is going to be reused for something else is funded, but the actual kennel relocation is not funded. How does that work? So what I would do here was ask ask Paul this is a if you've got if you've got budget available at the end of the year to do it because uh sewer both sewer water and public works streets have um working capital budgets as well as these and so um should he decide that that is an important enough expense that he needs to do it then that could fit into that working capital budget and he could do it with that. So each of them have So by working capital we mean we're not going to we know you're going to have unanticipated capital needs throughout the year. We don't want to go through an approval oneonone for each of these smaller things. You've got this amount of budget to work within capital needs that come up throughout the year. And so um typically they try not to spend it. Uh this would be a case where they can they can do with that.

So is that kind of like contingency? No, it's contingency is different. It's it's uh maybe the I would say it's anticipated unanticipated costs. So, we know that there are going to be unanticipated costs in the year. We don't know what they are, how much they are. We've got some budget set aside for these major operating departments where something comes up, they have a major repair they need to make, they have the budget to there's not a hoop to to jump through or anything like that. And so, um, and so oftent times when a department comes with a request, we'll say, "We're not going to fund it. Find it in your existing budget." Or like $5,500 for a vehicle and fire. Hey, fire, you've got a budget of X million. We think during the course of the year, you can find a way to figure out how to buy a $5,500 truck if you need. We don't need to increase the budget by that amount. if you can't come and talk to us. Um, and then the working capital kind of fits into that. It's made for that. If there's funds available, do it. And so we're not recommending it right now.

Okay. So, but just to clarify, so you it was recommended to fund the moving the dumpsters to the sewer with that funding, which would displace the kennels. So the first half of that could happen and then the second half has to wait to see if there's money at the end of the year. Well, we wouldn't do either until unless both of Yes. Yeah. We're not going to have a no place for the dogs,

especially since we met with the shelter in Warrington. And even if we wanted to, they do not have capacity to service seaside. All right. Um key budget themes maintain current levels of service. address rising operating costs, begin tackling deferred infrastructure, improve alignment of revenue and services, and prepare for long-term financial sustainability. Uh, this is a transition year. I could probably say that every year.

Budget balances uh our budget balances service delivery with future planning. Uh, and the goal is to put us into a more sustainable position. Um, and um, again, your input and deliberation will be crucial. That's what I have. My mouth is dry, so I'm going to take a drink. Um, so this is kind of kind of we turn it over to the committee. I think what would be helpful for Zach and I is what would you like to tackle and be prepared to discuss at your next meeting so we can be prepared and um you can also be prepared what um this is a bit of drinking from the fire hose today so you need to know when's our next meeting

uh April 22nd two weeks two weeks from now two weeks is our next meeting. Is that one issue about the 22nd is that at least some of us are going to be in Pendleton. I thought it was next. I thought that was next week. We have one next Wednesday. I thought that was next week. Okay. Then I got my week's next week. I'm going to leave the morning of the 22nd. So I will not be Most of us are leaving the morning. Yeah. So it's so do we have something? Sorry. So, our next meeting is the 15th, right? And we don't have one on the 22nd. Sorry. Sorry. And your budget

your your mind is full of budget right now. So, for a week from today, sorry. And then we don't meet the week of LLC. Your budget book dates are the ones that are wrong. It has the 22nd. It should have the 15th. It has the 30th. It should have the 29th. Yep. My my fault, mayor. I'll I'll get those fixed. Okay. Well, I just want to make sure. Sorry. You should You should already have those up on the right day in your calendar, right? We should, but this is a public. So, when are we going to finalize the nonprofit grant funding? You guys tell us when you want to have that discussion at the next meeting.

Yes. So that budget is streets and parks. So we can go through that. So um we're not through the budget process. We're not proposing a specific project other than four parks the north. So and we are working with the designers on that with our sub commmittee that we'll bring to the parks committee and then you know make recommendations. So, and the streets is a 20 $1 million fun.

It's 21. I I'll send it out to the committee because you I don't think you were here when we had that. We can I can send you kind of the presentation that the consultant put together uh along with the backing documents that bring you up to speed on that. And so really for the streets, it's like a formula. So, it's not a matter pick this street, pick that street. It's it's input your data and the the model tells you your money is best spent on this list of projects. Basically, that will in we have a score for the city that will increase your overall life like score and that of your streets, the condition of your streets, which will mean that you're you're you're putting up you're avoiding some higher costs. It's I will send something out to the committee that better explains.

I think that report is on the website, isn't it? Probably. Yeah, I'm pretty sure send it out maybe with a link to that, but with some explanation. It would be good. And so what if um you want to challenge anything that you just went over? I don't think challenge is the right word. No, I don't know. This is a um proposal and um I think I think that that's what the whole budget process is for. This is my recommendation, my proposal and there will probably be some tweaks as we as Zach and I get into it that that small thing here or there that we'll probably recommend.

So if there's an item I want to bring back for discussion, I should send you an email. Is that the No, I think I think I think that's what this committee That's the point of the committee meetings is Well, I asked you what how do we choose specific projects and you made it sound like we're going to kind of go through that here at some point. I Yeah, I think I think let's talk about that now. How do you want to do that?

Is there a specific list we could look up aside from North 40 what we're proposing or is it just north 40 and then the streets that need it the most? Is there anything? We don't have uh any other um projects in streets and parks outside of those. Well, no, that's not true. There's smaller parks. Not right now for restrooms. We've done the restroom at Broadway recently. I know you and I we we've talked about that. The ones at the turnaround are in Park. Yeah,

car ride park's been on the list for a while to do this better or the other. Uh, hold on. Let's let's go to councelor Baker. Well, it's the question I was going to ask which kind of is on the same path here. You know the list that we've been working on that you've got in Microsoft forms and we've prioritized. I know a lot of those are policy, but there are things on there that we, you know, set priorities for. Did did you cross reference that list to come up with the recommendations or is that something we should go back and look at again?

I'll go back and check. I think most of those were already accounted for in existing budgets. Meaning we already have existing budgets, capital budgets that are approved. And when the council when the council adopts a or approves a capital project, it's not just for that fiscal year. it's until we close out that project. So, if it's not finished or not started, it continues to stay on to stay on there until it's closed out. And so, uh, I'll go back and cross check. I haven't specifically cross-checked that, but I don't recall anyone specifically that needs to be budgeted where we have a definite plan of what we want to do. you know, for example, I we don't have a budget in here to build a tsunami evacuation structure. That's not where we're at, but um so but I'll go back and see if there are specific projects. So, but it sounds like um a more robust details of capital projects uh both funding availability and proposed projects. um having a discussion of what you want to see in there um uh both for parks and for council mono um facilities. You I know you want to talk about generator.

I do. Yeah. You know that. Yeah. And and that's why just like just like uh to my department heads if I didn't fund everything they wanted don't don't things get funded don't get funded. So if you I anticipate you'll make changes and so uh I think we'll bring that back enough to have a robust discussion about that. Are there other items? So before we even have to have that discussion, could you look and see if that might qualify under tour um uh tourism TLT TLT community center

because a community center will be used in case of a tsunami or in case of a earthquake or in case of a big storm in a in a major event. It will be used to to be a warming center, a cooling center, a feeding center just like what happened in December of 07. I will say this, I can look at it. Okay, there may not be an exact answer because the answer is what risk do we want to take if someone challenges it?

I understand. And I'll say that seems uh of everything we could be doing that would be the largest stretch I think uh uh over other projects we could be doing with uh for example uh a parks project uh would be much um more easy to defend I think I understand but I I'm grasping at straws. Yeah.

And I I think this is the time for where if there are project ideas um uh if you know of them now, bring them up now so we can come prepared. If not, come prepared to discuss ones that you consider or think of between now and the next meeting. So, I think what would be helpful if you sent out this presentation to all the budget committees so they can see what you put zeros and ones on. And then also if we came with projects that we see around town and even if we can't fund them this year, at least they're on our radar because I know the turnaround bathrooms and I know Carr Park restrooms are high on that list. So maybe everyone could take a look around town and add

their input and then if it doesn't get funded this year, at least it's on a list somewhere we can fund it in the future if there's money. Yeah. And I think um there are more possibilities for what you're talking about to even possibly do within the TLT side of those reserves. And so that's what we can look into come back with some more. But that would be this year. I mean even if we have to wait till January that would be in 2027. Correct. Yes. And the prom improvements TLT. Can we get more detail? Is this just another rehab again? Well, which one? Sorry. The prom improvements. What's How much is budgeted there?

924,000. It's a 800,000. Is that on the expenditures or the revenue? Is that transfer in for it? That's the trans That's the Oh gosh, sorry. Uh that's the transfer of budget at year end. So that is a TLT fund. So that is half of the budget at the beginning of the year. And so that is um that the theory would be to reallocate that to either streets or parks. So to what? To either streets or parks.

So the three funds that contain our transit lodging taxes on the tourism side are visitors bureau, convention center, and prom improvement. Capital improvements and maintenance convention center. There's one more. Um, shoot. There's one more. Anything else? These are all good things to be discussing. Anything else? So, um, amongst the crosswalks and and uh processes to prioritize things, are you taking into consideration the comp plan and priorities that are in the comp plan to to prioritize what things are budgeted for in um,

No, we don't have a comp plan yet. We do have a comp plan. We don't have comp plan.

We have a 30-year-old comp plan. I think we will wait until we have a new comp plan and then start building off of that both with our ordinances, with our capital plans, and everything else. But, uh, I don't want to get out ahead of it. It will inform a lot of what we do. So if there are things that you do want to bring up at the next meeting, I will say email Zach and I because the the more informed we can be going into the meeting, the more productive discussion we have. So, the two things that I have for next time that I've heard are more project detail on the expenditures for streets and parks and nonprofit funding.

Anything else? I would say I'd say facilities to that because that's where the generator comes in. Okay. And that's where the bathroom that's parks. Chris,

yeah. Sorry if this was on some of the beginning slides that I didn't see, but one thing that's of interest to me is um what what is funded that is considered base budget and what is funded in what we have for what we're considering expansion. Those are the terms that are that I use, right? You might call them something different, but like do we have a bucket of money and how much is that that is available for expansion projects that we want to fund on top of the base budget? Isn't that how we did?

So I would say my philosophy is that we fund so we start with the basis of the same as last year and then we come with the changes to the budget. Now, some of the things are changes that we have to do like the personnel uh plan and whatnot, the insurance and union contract and things like that. But yeah, let's say we have an extra half million dollars of money. How are we proposing to allocate that? Uh and I think that would be I think uh that would be a good thing for us to talk about. It is allocated in the budget, but let's get very specific on what new money we have and what we are proposing in terms of ongoing commitments because some of these some of the things in this budget are ongoing even if they're not personnel. Some are capital which is a one-time expense and it's either to to use the revenue that we generate next year or to use our reserves. Um I think that's what you're talking about. Is that right, counselor?

Yes. Yes, exactly. Thank you. Isn't that how we did it last year when they were presented and we were able to set some priority of there was a specific amount of money to spend and not everybody

so um so uh and it's a little different this year because I guess a different approach. It's all budgeted. And so the discussion will be um here's how I've here's the new money. Here's how I've recommended it be spent. And if you want to disagree with that, you should and you should discuss it and make the changes. But it's a decision to take the funding from somewhere else to fund something. And again, it's not really taking the money because I'm only recommending it goes there. But I think the mental standpoint is it's not just free money that we're budgeting. It's money that instead of spending it

uh on a street, we're spending it on this or this or that. And so uh that'll be a good discussion to have and I think that'll also be the opportunity that I think that leads into discussions on this committee about other priorities and other projects or other things that you want to do. Anything else? Otherwise, I think we have a we'll have a full meeting agenda for next week. Any other comments? I really was looking forward to two weeks before the next meeting. My fault. Sorry everyone.

Anything else we need to talk about? Hearing nothing. Let's recess this meeting until next Wednesday at 3:00. April 15th. Next day.