City Council - Regular Meeting

they're using, what websites are they going to that anyone can access. In part of your investigation, you reported on an Alpha School student who wrote on a feedback form, "We are not computers or algorithms. We are people who don't like being watched through their computers." Yeah. Alpha School is constantly seeking feedback from students. And this is a kid aware that they're being watched and not liking it and being also worked very hard to complete all these exercises in a way that, you know, makes them feel like a machine.

You also reviewed documents that showed that the company was training its own AI by scraping data from a variety of other online courses without permission. Talk about that. In order for Alpha School to generate all these lesson plans with AI, they need a bunch of training data. And Alpha School doesn't talk about where it gets this information. But what I saw in internal documentation is that they very aggressively go after data that's available on the internet from other online learning platforms. People might be familiar with Khan Academy. That's a popular online learning platform. I should note Khan Academy is free, but reusing the material for a commercial purpose violates their terms of service. There are some ongoing legal cases about whether this qualifies as stealing, but is certainly something that they're doing without permission.

Well, let me ask you, the principal and driving force behind Alpha School, Joe Liamat, said in a podcast interview last year that all education content is obsolete. Every textbook, every lesson plan, every test. And yet your reporting has found that they are scraping that educational content to form what they are calling original AI. How do you square that circle? It is a textbook Silicon Valley philosophy, pardon the pun, the belief that say a AI video generator can make all of Hollywood obsolete while ignoring the fact that it is trained on every movie ever made. It is a selfserving view of the world from the executive of an AI company. You want to plunder existing human work without paying artists, without paying teachers, without paying programmers and offer the same product without any labor costs. Is that possible in the future? I am personally skeptical of that as someone who reports about AI. But it is a self-serving belief that will make a few people extremely rich. it doesn't necessarily mean that it's true or ethically okay to do.

So tell us what was the push back you got from the company? How did they defend themselves from your investigation? They did not I did not get any response from Alpha School. I managed to get a hold of one of their PR people. I sent them a list that included every claim that is made in the article and they just chose not to respond. I've never heard from them. Emanuel Mberg is a reporter with 404 Media. Thank you so much for your reporting and for speaking with us. Thank you for having me.

South Korea is celebrating the reunion of its most famous musical act BTS. Fans welcomed the K-pop group back at a massive free concert in Soul over the weekend. NPR's Anthony Cune reports. BTS's seven members performed on a stage in front of a former royal palace in the heart of the capital. Band member J Hope addressed the crowd in English.

Okay, guys. I can't believe the seven of us are all standing together on this stage today. Wow. Thank you for waiting for me. After a nearly decadel long rise to stardom, the band took a break in 2022 to perform mandatory military service and do solo projects. 42-year-old fan Jang Inja says the reunion marks the start of a new chapter for BTS. When the group BTS first came out, they were like babies before they went into the military. They were like people who were half complete. After their discharge, they're coming out with a more solid influence as men. So, I'm looking forward to it a lot.

More than 10,000 police and city officials controlled crowds and manned downtown security checkpoints. Crowd estimates ranged from 40,000 to 104,000, far lower than predicted. The day before the concert, BTS dropped a new album called Adid, also the name of a beloved Korean folk song. world.

Visiting Boston resident Lee Cal talked about maturing with BTS and about the new album.

I'm 23, 24 now. So, I'm still listening to BTS. So, I think they're making music for people like our age now. And mature wise, I don't know really how to describe it honestly. It's not like butter. The new album has less pop and R&B and several darker, cooler rap influence tunes like 2.0, a song that announces the new phase of BTS's career. Despite all the Korean culture displays, the concert was made for global media, directed by Britain Hamish Hamilton, who masterminded the Super Bowl halftime show and streamed on Netflix. Next month, BTS will set out on a 34 city world tour that will last into next spring. Anthony Cune, NPR News, Soul. It's here and now. I'm Chief Advancement Officer Sally Walker. Radio IQ has concluded the spring drive and with your help, we surpassed the goal of $375,000 and welcomed more than 250 new members. To all who chose to transform their Y public radio into a gift this week and all who have given in the past, thank you so much for your support. With your help, we'll be here in the weeks to come and with sustaining support hopefully well into the future. Thank you for listening and for your support.

On the next Fresh Air, actor Riz Ahmed on his new prime video series Bait. He plays a British Pakistani actor auditioning to be the next James Bond. He's also a writer and creator on the series. And he stars in a new film adaptation of Shakespeare's Hamlet. He'll tell us why he believes the most famous speech in the English language has been misunderstood for centuries. Join us. That's Fresh Air. Monday through Thursday at 2 PM on Radio IQ.

Funding for Here and Now comes from the listeners of WBUR Boston and from Math Works, creator of mat lab and simuling software for technical computing and modelbased design. Math works accelerating the pace of discovery in engineering and science. Learn more at mathworks.com. and Lumis Sales. For 100 years, committed to helping investors achieve their financial objectives, combining in-house research and risk management to create tailored investment strategies for every client. Learn more at lumisales.com. It's here and now for eager tourists in Washington DC. And for locals, it's cherry blossom season. The pink and white blossoms are already visible on many of the thousands of trees planted along Washington's Tidal Basin along the Jefferson Memorial. The National Park says peak bloom should be next week. It's magical. One of the most photographed scenes of the year in DC, an Instagram moment that predates Instagram by a century. Japan gave the US more than 3,000 cherry blossom trees in 1912, many of which are still standing. And Japan is gifting 250 more trees to celebrate America's 250th birthday. President Trump says the new trees will be planted around the Washington Monument.

We know that child care is expensive. In many parts of the country, it's more expensive than a mortgage, rent, or college tuition. It's also in short supply. New York City's mayor Sran Mandani has gotten a lot of attention for promising universal daycare. NPR's Jennifer Leen reports that his pledge is part of a larger trend to help parents with this enormous expense. In Queens, New York, Manancy Mia feeds her six-w week old baby while we talk. She had planned to return soon to her job as a home health aid, but I've called places up to six miles from here and they don't have any space for babies. So, it's an indefinite wait.

She's the sole earner as a single parent and qualifies for a child care subsidy. So, being out of work longer is tough. I can't even think of what that means financially right now cuz I still have bills to pay. New York Mayor Zoron Donnie's goal is child care for all from 6 weeks and up. But to start, the plan is to expand a free preschool program to include 2-year-olds. When he announced that in January, Governor Kathy Hokll said the state will pick up the tab. We're taking the unprecedented step to not just commit for the 2027 budget, which I'm working on right now, but also the following year as well to show you we're in this for the long haul.

That's on top of billions to expand child care statewide. But will lawmakers keep the money coming? That's the key question for a growing number of places, says Elliot Haskell with the independent think tank Capita.

Can child care funding, much like funding for our public schools, be set aside, or is it going to constantly just be budget cycle battle, which is going to get rough. He says the pandemic's mass disruption of child care made clear how much local economies rely on it. And that's boosted public investment, not just in blue states, but also red ones like Texas and Montana. Several have created trust funds for a permanent stream of money. Notably, New Mexico is tapping its oil and gas revenues with an ambitious goal of free child care for all. Other states have passed targeted tax hikes like Vermont where businesses struggled to find workers.

They passed a small payroll tax, 0.44%, most of it's paid for by the employers. And interestingly, you actually had employers in Vermont basically asking the state legislature to tax them because they were having such a terrible time. In Cincinnati, working mom Rebecca Dixon faces that brutal calculation. Child care wait lists were so long when her son was born. She just kept working remotely. She's managed for more than a year, but it's really hard and she's decided to stop for a while.

Just from a financial standpoint, if we do put him into a daycare, I'm essentially working to pay for that daycare. And for us, it doesn't make sense. In January, Pricey San Francisco announced it will expand free or subsidized child care to families who make up to $310,000. It's tapping a commercial real estate tax. Other places use taxes on gambling, cannabis, or tobacco. But none of that revenue is guaranteed.

One of the reasons why the tobacco tax funds are kind of waning because people stop smoking. Patty Cole is with the childhood development nonprofit 0ero to3. She thinks eventually the federal government will be the only solution for steady funding to serve children everywhere. But the growing patchwork of programs can help the country get there.

It's really hopeful that we have these kind of pioneers and hopefully they're going to work through some of the thorny problems so that when we get the rest of the country there, we have lessons learned that we can point to. One of the biggest thorny problems, raising pay for providers who make poverty wages. Tara Gardner heads the daycare council of New York and says it's tough enough to keep people, let alone recruit the many more needed to scale up.

Our centers often find themselves training staff who will then transition to New York City public schools because the pay is higher, the year is shorter, and the benefits are better. And that leaves parents like Manancy Migel in Queens stuck. She's glad about the new push for universal care, but wishes it had happened sooner. Jennifer Lutton, NPR News. And speaking of high prices, we're also working on a story about utility costs. We want to hear from you if you're struggling with your power bills.

If you cranked up the heat to get through record-breaking cold this winter or you're dealing with unusually hot days now, go to here andow.org/energy. org/energybills and tell us what it's like for your household. That's here and now.org/energybills. We may use your comments on the show. Here and now is a production of NPR and WBUR. I'm Indira Lakshman in Boston and I'm Peter Odow in Phoenix. It's here and now Funding for Here and Now comes from the listeners of WVUR Boston and the Museum of Science Boston, where the whole family can discover indoor lightning storms, journey through the human body, and meet a 65 millionyear-old triceratops. Visit mos.org to learn more. I'm business manager Wendy Warren. RadioIQ has concluded the spring drive and with your help, we surpassed the goal of $375,000 and welcomed more than 250 new members. To all that gave this week or last year after the government recession, and to all that have given in the past, thank you so much for your support. With your help, we'll be here in the weeks to come and with sustaining support hopefully well into the future. Thank you for listening and for your support. Connect with Radio IQ on Facebook, Instagram, and LinkedIn. And we'll keep you up todate on the latest ticket giveaways, special programming, and more. You can also visit us and stream live at radioiq.org. You're listening to Radio IQ on WVTF Rono, WRIQ Charles City Richmond, WBTU Charlottesville, WVTW Charlottesville,

WVTR Marian, WISE FMYS, WQIQ Spennsylvania, WIQR Lexington, WHC Emory, HD3 of Wurv Richmond, and on 92.5 Richmond and 94.9 Fredericksburg. RadioIQ, a listener supported community service of Virginia Tech, on your smart speaker and online at radioiq.org. Fresh Air with Terry Gross is underwritten by the Davis H. Elliot Company, providing energy delivery services to utility and government partners since 1946. The Davis H. Elliott Company from WHY in Philadelphia. This is Fresh Air. I'm Tanya Mosley. Today, award-winning actor Riz Ahmed with two new projects in his new prime video series Bait. He plays a British Pakistani actor whose audition to play James Bond sends his life into a spiral. And his new adaptation of Shakespeare's Hamlet is set in a modern South Asian community in London. We talk about how much bait comes directly from his own experiences. Like that time a supermarket clerk accused him of trying to steal. And we get into a back and forth and I'm so frustrated. At one point I go, "Dude, I'm not shocked to think. I'm a Star Wars man." and they go, "Okay, this person is definitely crazy and uh you're banned. You're never coming back here."

Ahmed also talks about his new take on the most famous line in Shakespeare, to be or not to be, and why he believes it's been misunderstood for centuries. First news live from NPR News, I'm Laxmi Singh. New York's LaGuardia Airport may be reopening at least one runway this hour following last night's deadly collision. Two pilots were killed when their Air Canada Regional jet out of Montreal collided into a firetruck during landing. Local authorities say about 40 passengers and crew members were taken to area hospitals, some with serious injuries. The region's Port Authority Chief, Katherine Garcia, says the firetruck was responding to a separate incident aboard a United Airlines flight when

Good afternoon and welcome to our city council recessed session for March 23rd, 2026, 2:00 p.m. City Council meetings will be televised live and replayed on RVTV channel 3 on Thursdays at 7 p.m. and Saturdays from 10:00 a.m. 5:00 p.m. and video streamed through YouTube live at youtube.comva. Council meetings are offered with closed captioning for the deaf or heart of hearing. So, it's uh my pleasure to welcome you all today as we look forward to um hearing from our city manager and the team on the proposed fiscal year 2627 recommended budget. This time, I'll ask our clerk, Miss McCoy, to please call the role. Miss Powers here.

Mr. Hagen, here. Miss Sanchez Jones, Vice Mayor Maguire, Mr. Nash here, Mr. Volison here, Mayor Cobb here, and a quorum is present. So, at this time, I'll invite uh Miss Turner and her team to present the fiscal year 2627 recommended budget. And as you do so, I want to thank you and your team again for uh your extraordinary work on getting us to this point today.

Thank you so much. um and mayor um and vice mayor in his absence and city council member. We are pleased to present the FY2027 recommended budget. This budget briefing and presentation of the recommended budget will focus on providing a number of things. Number one, um a general overview um of how we got here. um revenue highlights and the expenditure highlights, capital improvement program. We'll do a closing summary. Um we'll talk about the remaining budget timeline and we'll be happy to answer any questions that you may have. The budget planning process started in early fall with the budget team doing the preliminary work followed by the department and division managers working on budget shortfalls. Uh financial planning budget retreat that we had with you all in November. Uh the public uh budget briefings in January, February, and March. Individual meetings with council members. budget committee meetings during the day, at night, on the weekends. Um, as I said in prior briefings, each budget development cycle presents its own set of challenges, and this one was no different. We have done the necessary work to balance the budget after starting with a gap of 18.9 million based on projected incremental revenue, departmental requests, and inflationary cost increases. Working with our financial adviserss, we have also made the difficult decisions on revisions to the capital improvement program to mitigate the amount of incremental debt service funding that is required. Next slide. As first discussed again in November at

our financial planning budget retreat and referenced in subsequent budget briefings, the budget was developed during a time of economic uncertainty. A budget cycle of projected revenue growth that is less than moderate compared to prior years. Additional future economic uncertainty given the sunset of the meals tax increase. Financial resources not sufficient to address budget priorities and the need to address programmatic expectations due to limited financial resources. Next slide. This slide may look familiar as it was first shared during the city council's budget retreat in November. This line graph developed by PFM Consulting Group as part of a comprehensive financial analysis of the city's um comprehensive financial analysis shows progressed projected revenue and expenditure growth. The analysis projected that revenue growth would pro be primarily impacted by slowing property tax revenue growth impacted by moderate assessed value increases. Again, the sunset of meals tax increase, adding additional pressure to the budget. The line graph also shows that expenditure growth will exceed revenue growth, necessitating that we take the required steps to close the gap. This is exactly what happened during the development of the FY2027 budget. As we worked on developing and balancing the budget, we were mindful of the strategic vision and investment priorities. Vision to build a community defined by pride, opportunity, and share success. One that

attracts talent, inspires innovation, and prioritizes long-term sustainability. Goal to become a model city of the future where creativity drives progress, nature, and innovation coexists, and every neighborhood flourishes. Beginning July 1st, 2026, the city will focus on five newly implemented strategic priorities. Civic stewardship and infrastructure, community and economic vitality, community safety, health, healthy and sustainable communities, and education. These priorities will serve as the framework that guides decision- making, resource allocation and service delivery across city operations. Next slide. The general the proposed general fund budget totals 421.5 million which represents an increase of 13.775 million or 3.37% of the FY2026 budget or current year. This budget represents the challenges we are anticipating as we move into FY2027 as well as the choices we are recommending based on projected revenues. The recommended budget focuses on maintaining essential services, increase in funding to Rono City Public Schools, recognizing our employees through an increase in compensation. All of this is given the less than moderate revenue growth and identified expenditure needs. Our budget balancing strategy focused on

funding only those budget requests that are necessary which is primarily inflationary costs, compensation and non-discretionary costs. Also identifying reductions to our base budget. continuing to proactively and aggressively manage hiring and lastly revising the capital improvement program to align incremental debt service with our financial reality. At this time I would like to turn the presentation over to Mr. Keki who serves as our budget manager.

Welcome Mr. Keki. Thank you, Miss Turner. Good afternoon, mayor and members of city council. So, before we get started, um I do want to thank Miss Turner and the budget team for the work that we've done so far. We do have a lot to cover today, but the what we'll start with is the revenue highlights. So I would like to paint the picture of how we started at 18.9, we got down to 5.1 on March 2nd and where we are today with the proposed budget. So starting off with our revenue highlights, if you recall from January 20th, uh we presented a 12.83 833 million in revenue growth total and we carried that forward for March 2nd where we looked at some revenue considerations real estate we also looked at some trends based on the G48 best practice but also looking at what PFM had already provided so in the general property taxes after going back we've readjusted some of the revenues we've picked up approximately 194,000 so if you look at the slide side, we're looking at a $9.62 million increase, which is approximately 5.32%. And looking at the real estate, we're still look using the same assumption that Mr. Bratton presented in January, which is a 6.55 tax assessment growth. While that is an increase, you will see on the next couple slides that the tax assessment has been decreasing year-over-year, which is why we have to adjust, as Miss Turner has already mentioned, our expectations going into fiscal year 27. We also made some downward adjustments to our personal property um due to fiscal year 2425 decreasing in actual collections. So currently the budget that you see reflected there with the 644,000

is reflected of fiscal year 25 budget. We also made some adjustment to our district taxes after looking um at the uh real estate as well for the Williamson and downtown district and that is because it underperformed when compared to where we were in the budget. So again adjusting those expectations and using the modeling that PFM had already provided. So moving on to other local taxes. This is where we are highlighting some of the consumption taxes. On the last briefing on March 2nd, we talked about the sales tax. As you know, we did not pick up as much as we thought we would over the Christmas as well as the Black Friday November. And that is the same um economic factor we've used and also looking at other localities in Virginia that are seeing the same thing. Prepared food and beverage in looking at some of our delinquent and current our projection is to downward adjust by 2.3 million. And again based on our GeFor best practice we're using a conservative approach going into fiscal year 27. As you know what's happening um with the disposable income right now, the economic pressures that the residents and community are currently facing, there's no way to predict consumer behavior, whereas you can really look at the current fiscal year to really tell what's going on. So going into fiscal year 27 right now, we're playing it month by month as we go into a midyear and then we can make some reasonable adjustments. transient occupancy. Uh Miss Harris has been presenting some assessments in terms of what we're reporting monthtomonth. We've picked up approximately 300,000. So we felt the need to make an adjustment in our transit as you can see 98,000 which is a which is a slight increase from last year in fiscal year 26. We also made some adjustment in our

business licenses 176,000. However, we do have some downward adjustments as you can see in our current electric through the A and we're leaving the communications tax flat to a $2.72 million decrease. I also do want to highlight that in January um and in March, we had a $4 million downward adjustment. So, we did pick up approximately 1.3 million from the March 2nd to today. So, we're moving on to a general property and other local taxes combined. If you recall from March 2nd, we highlighted that we benefited from a $62 million growth from fiscal year 21 to fiscal year 25. We invested in compensation 35.9 million and education in 24.1 million. With that said, you can see the chart is showing you that taxes are cyclical in nature. Uh we started off with the 8.28 million and all the way to 22.83 from fiscal year 23 to 24. But if you look at 26 to 27, that's a $6.9 million growth. And again, if you look at the last two slides we just presented, that's 9.6 and the downward adjustment in of the local for that 6.9. And as you can see in that bullet point, the 6.9 million is the lowest we've had in the last six years. So again, going back to our PFM presentation we had in November, this is representative of where we're going in the next four to five years. So in the real estate tax assessment, I mentioned the calendar year 6.55%. However, you can see that we did average approximately 8.85% 85% between calendar year 22 and 25. While again mentioned

that it is growing, it is starting to grow at a slower rate and again making sure that we adjust that on the expenditure side because what we can control is expenditures. We cannot control any revenue growth into intergovernmental revenue. We're looking at a $6.8 million increase which is 7.21%. We're still carrying the same assumptions we had from January 20th and March, which is your vot, which is street maintenance at 1.5 million. Social services revenue, we have downward adjusted our initial $5 million increase to 4 million. This is due to some of the programs we're not anticipating or receiving as we go into fiscal year 27. We're still carrying on 1.3 million in the compport um adjustments. As you know, that has been passed. So this is in addition to the 599 funding for the police department bringing our total to 6.8 million and again with 7.21%. So this brings us to the 13.75 million that Miss Turner had referenced. As you can see 4 million will be allocated to social services and 1.5 to street maintenance and 8.23 to all other revenues. So I do want you to you know visualize that 8.2 because in March it was only 6.2 million and this will cover your RCPS funding all other expenditures as well as compensation. So the next couple of slides that 8.2 million will be divided in those categories so that you could see how we've closed the gap from that 18.9 to where we are today. So in starting off with our RCPS funding. So this chart shows you the line graph basically of how much funding

we've provided towards education. So we started off at 82 million in fiscal year 21 and currently our increase is 1.156 million bringing us to 108. If you recall again referencing back to March 2nd and January 20th, the increase was 751,000. However, after increasing general property taxes and other local taxes, that allocation has increased, bringing us to 108. And just to reference the general property and other local that I referenced in the last couple of slides from the 62 million that we've benefited from from fiscal year 21 to 25 you could see that 24.1 has been increased for towards education and that is referenced again by from 82 million to 106 106.9 that we had when we level funded last fiscal year. So, moving on to the fund balance discussion. So, we wanted to highlight the ongoing discussions that uh we've been having internally, but also with city council members. At the end of fiscal year 24, RCPS had a general fund unassigned fund balance of 22.9. And for those of you that are not aware, fund balance is essentially a reserve for future spending. It could either be assigned to projects or unassigned. Additionally, our CPS capital projects fund balance total 26.2. So, we're looking at approximately 49 million in a fund balance. And city council approved RCPS to retain 10.3 of that surplus for the current fiscal year 26 balancing. Additionally, from the capital projects fund balance, city council approved allocating

17.9 to various RCPS projects as well as 2.1 million for the learning colleges. So that leaves an adjusted total of approximately 18.7 million that city council and RCPS will have discussions on what to do moving forward. So just to take a pause, if you recall, I mentioned we had 8.2 2 million that we had for all other revenues. So we've already deducted 1.15 for the RCPS funding. So the next slides you'll see what we are allocating towards the general fund for all other operations. Starting off with fiscal year 27 compensation that is 5.2 million. Initially this package was an $8 million increase and we'll recognize some of the adjustments that we've made on the base budget in order to balance the budget. So we are proposing a 2% base pay increase instead of a three. We're still moving the public safety to the next phase on the step pay plan which is an average of about 2.2% on as they move to the next step. We're continuing funding for non-discretionary items. Your retirement contribution rate increasing from 21.1 to 22.02%. Medical and dental increase. vacancy savings. Again, if you recall March 2nd, we referenced that when M. Turner arrived, we had vacancy savings at six and a half million. So that is essentially at that time 100 to 115 positions that would have been frozen in order to balance the budget. So as we move on to fiscal year 27, we've already reduced it by half a million in 26 and this million would decrease it to an additional to 1 million to a 5 million. We also have a 27th pay period which is

scheduled for July of 2028 um which occurs every 8 to 10 years. So moving on to other funded expenditures starting off with our contractual fees for professional services and this funding is approximately $2 million. So, we're allocating 2 million to, for example, your jail and medical food contract through the sheriff's office, partially funding fleet fuel cost, marathon health contract for employee health services, fire EMS training center lease agreement increase, which we've frozen positions in order to fund the juvenile detention center, city share, which is increasing by approximately 350,000. So we took out debt for the structural repairs and such as HVAC as well as the compensation for the staff. Technology maintenance contracts such as your body cameras have also increased and we've added more for this fiscal year. We've also allocated partially for overtime and temporary wages and this is primarily going to public safety about 500,000. Again, if you recall, when we increased the meals tax by $2 million last year, we added that to the base for overtime and temporary wages. So, we currently spend approximately 10.4 million um on overtime and temporary wages, and 43% of that is public safety. So, all other department requests, we're prioritizing the need-based requests based on what we have to do going into fiscal year 27. general services, utility costs increase. This is primarily all facilities management, police vet services to supplement those services that are not covered by the RCACP. So for example, RCACP, the city shares

increasing by 450,000. That is 69% of all the animals in the shelter belong to the city. solid waste tipping fees, trash compact to lease, risk management insurance premiums. Also looking at the Riverdale contract as well as the history partners um performance agreements that we have through the economic development Bergland Center operating subsidy as well as the debt service increase. So before moving on to the items that are not funded again we started off with 8.2 million 5.2 is allocated to compensation 2 million will be allocated to all other expenditures and 2.1 million approximately your contractual fees for professional services. And I think it is also important to note that when we went into the items that are not funded again we started off with 18.9 so the total requests were 31 million that we had to filter through. So some of these examples will highlight some of the need that we have to have going into fiscal year 27 but we cannot fund. So we do have a strategy that I'll cover in the next couple slides. So starting off with personnel requests. Uh initially the request was 4.3 million. We're currently funding 396. One of the positions will be assistant common attorney and this is due to the body camera um to attorney ratio that we have to have. However, we can only accommodate one position and the total request was for three. So, the recommendation not to fund the four million impact the following departments. As you can see, we still have common attorney on the list, but also social services. They also have a state recommendation for CPS employees, benefits program specialists, family

services. However, we do not have enough funding to accommodate that increase. libraries. Um we do have an unfunded positions for armed security and this is due to our managed hiring strategy that will utilize temporary wages. Fire EMS captain that would have taken care of the drug lockers. However, again due to funding constraints that is one of the positions that are not funded. We also have a parks and recreation. Initially they do have a master plan for the Eureka opening. However, due to the current constraints and funding, we can only accommodate one of the positions, which is a facilities manager. So, moving moving on to the strategy that we will use as we go into fiscal year 27 and navigate some of the challenges that we're facing. So, we'll implement a managed hiring. So we initially looked at all the positions that we have current and vacant and we selected 29 positions that would be unfunded worth approximately 2.4 million. Departments that are impacted will be your police, your fire, your sheriff, your libraries, your parks and recreation, general services as well as your engineering. While we are unfunding for the public safety, we understand that is essential services which is why we have to utilize the managed hiring moving forward to ensure that they have the necessary um personnel to provide the programs and services. The fiscal year 27 laps budget that I referenced in the prior slides was 6 and a half and now it's going to 5 million. And those positions are approximately 80 to 95 positions that have to be frozen in order to balance the budget. And after accounting for the 5 million

laps and the 2.4 million of the positions that are unfunded, we will utilize the managed hiring of the remaining positions to accommodate your overtime, your temporary wages, your fleet fuel costs that have been increasing in the prime in the last couple of months. Some of the items that are not funded under public safety, we're looking at 830,000 for your police, which is your overtime and temporary wages. While 830 is not funded, if you recall in the last slides, we highlighted 500,000 has been added to public safety. So, we're partially adding it in order to get to the desired budget that we need for that public safety, overtime, and temporary wages. sheriff's office is the increase um for the VRS multiplier to match surrounding localities. Initially, it will cost us 347,000 in the first year. However, that is supposed to increase year after year and currently the funding constraints will not allow us to move forward with it. Fire EMS, we also have the overtime and temporary wages and paramedic classes. And the last but not least, the 197,000 for pistol optics. And currently, um, Chief Booth's main objectives is to ensure that we do have body cameras, which is why we've made sure to add that to the base moving forward for fiscal year 27. Under infrastructure, we're looking at facilities program 833,000 and that is looking at more of your internal building maintenance. Moving forward, we're prioritizing the line of credit that we took out in fiscal year 26 through the mills tax increase, the 25 million to address the major deferred maintenance issues. Fleet management program, we're looking at that fleet fuel cost that I highlighted and again we'll use the

managed hiring to ensure that we do have sufficient funding as we move forward. special events to support the increased staffing needed for special events. Currently, our street maintenance crew is having to work on both sides to ensure that those are covered, but currently we do not have the sufficient funding to add more staff. Automated container replacement approximately 20,000 and currently we have approximately 36,000 um solid waste cans that are out of warranty. And because of funding constraints, with the current base budget, we would only be able to replace 364. So under parks, recreation, and cultural, we're looking at 55,000 that is not funded, and that includes your youth summer employment program that is previously partnered with the Greater Ron Workforce Board. Al also we have 20,000 on the park management for contracting services and that is looking at the BL brick layering that we would have contracted out for the walkway and highway park. So before going into the base budget reductions again painting the picture that we started at 18.9 million and in March 2nd we were 5.1 million out of balance and I've highlighted some of the items that are not funded. We're funding 5.2 2 million in compensation, 1.15 for the RCPS funding. We're looking at an additional 4 million for all other requests which are technology maintenance contract to contractual obligations that we have to do. So moving on to our base budget reductions. So we looked within the $47 million budget that we have and identified 5.6 million to unfund. Again, not by choice, but by need because we

have to carry some of these services that we've already pre-aggreed to in prior years. So, for example, we have one-time funding contingency 1.1 million. Typically, we have a contingency fund for break fix items that we have to do. However, we're reallocating that for the debt service increase. And Miss Kaitron will cover more on that um in the next couple slides. We're also reducing our risk management reserve by 550,000 which would be the second year we're reducing that transfer that we initially budget 466,000 in fire EMS positions. If you recall the training center lease is increasing so we had to freeze approximately four positions in order to fund for that increase. The GRTC subsidy 292,000. This is to accommodate the director of transit position but also a 5% operating reduction in the base facilities upgrades 150,000. If you recall I highlighted the main goal is to look at that deferred maintenance list and utilize the 25 million line of credit. So anything internal repairs we will not be able to do moving forward. Libraries program activities 105,000. So typically we would be getting ready for the summer reading program, community outreach festivals. Due to that reduction um that would not be offered for fiscal year 2027. Under youth development 104,000. So initially we would have under youth development the Eureka opening and the afterchool program if funding was available. However, due to funding constraints, we are proposing to close the Grandon site and utilize Preston and Eureka moving forward. And last but not least, environmental

management about 62,000. This is allocated to encampment costs. Again, due to funding constraints, we would have to utilize funding within the managed hiring approach as we move into fiscal year 27. So with that, I'd like to invite Miss Katron to cover the capital improvement program. Thank you, Mr. Kaki. So the capital improvement program or the CIP is the city's five-year plan for investing in various infrastructure. The CIP outlines what the city needs to build, maintain, and replace, the associated cost, and how those investments will be funded. While the plan spans for five years, only the first year is formally adopted as part of the annual budget. The recommended CIP for fiscal years 2027 through 2031 focuses primarily on projects with existing commitments, contractual obligations, as well as investments necessary to maintain the city's current infrastructure and continue the citywide improvement program. These include ongoing fundings for roads, curbs, gutters, sidewalks, traffic signals, controls, fleet replacement, and technology improvements. The plan also continues to allocate 5 million of debt capacity annually to support the Reno City public schools along with 1.5 million each year to help with the capital needs at the Burgland

Center. It should be noted that while the Burgland Center is intended to function as a self-supporting enterprise fund, the city does subsidize by paying for its annual debt service. It's also important to note in fiscal years 2030 and 2031, uh, it does not yet include funding for the extens extensive maintenance and rehab needed at the adult detention center. The scope and associated cost are still being reviewed to determine how best to move forward with addressing those needs. So let's turn to the funding sources. The CIP is funded primarily through the issuance of debt supplemented by cash contributions and a limited amount of available grant funding. Of the approximately 120 million in planned project cost over the next five years, the city anticipates around 11 million will be funded through grants for the two bridge replacement projects, 29 million using cash and 80 million through the issuance of debt. As we have discussed in prior budget briefings, the city will also need to convert three bond anticipation notes or bands into long-term financing during this period. The first of these totaling 57.5 million is scheduled to term out in fiscal year 2027. As a result, the total debt issuance in fiscal year 2027 is projected to be approximately 79 million, nearly three times the city's typical

annual debt service amount. The remaining bands, the 2023 10.1 million related to the EDA for economic development authority Riverdale project as well as the $25 million ban line of credit issued in 2025 to address the backlog of deferred maintenance needs across the city. And as a reminder, bands are commonly used as a financing tool in municipalities to allow projects to get started more quickly. During the development of the 2025 2026 budget, council was advised that it might be necessary to reassess the CIP due to concerns regarding the city's budget capacity to support future incremental debt service. This concern was revisited during the November budget work session. Following further analysis, it was determined that the level of debt service associated with the original CIP plan exceeded what the city could responsibly sustain. And in response to that, staff work closely with the city's financial advisor, Davenport, to evaluate available options and to develop a more sustainable path forward. One that better aligns the capital plan with the city's long-term financial capacity. As a result of that, several projects have been removed from the recommended CIP in order to reduce the planned debt issuance over the next five years. by $50.4 million. The projects for move include fire station number two, which now carries an

updated estimated cost of $12 million, the Belmont Branch Library expansion, and several parks and recreation projects that have been identified in the master plan. We recognize that scaling back and delaying projects present challenges and creates uncertainty as to when these projects will be reprogrammed back into the CIP. However, this was a very prudent step that allows the city to take a more strategic multi-year approach to align the CIP with manage with manageable debt service levels. To illustrate the impact of these adjustments to the CIP, the graph reflects how the removal of 50.4 million in debt finance projects affects planned debt issuance over the next five years. The red line represents the original CIP without any adjustments while the green line reflects the recommended CIP. Although debt issuance in fiscal year 2027 remains significant at approximately 79 million, it is lower than it would have been under the original CIP. Focusing on the green line, debt issuance levels are expected to decline from fiscal year 2028 to fiscal year 2030 before slightly again increasing in fiscal year 2031 due to the termout of the $25 million ban that was discussed on a previous slide. And building on that, this slide shows how planned debt service translates into

incremental debt service within the city's operating budget. The graph highlights what is considered the most viable option moving forward, represented by the green line. Under this approach, again, approximately 50.4 4 million in debt funding projects were removed which in turn reduces the overall amount of debt required. In addition, this option also includes the restructuring of a portion of the city's existing debt, shifting some debt service currently scheduled in fiscal years 27 and 28 to fiscal years 32 and beyond. As shown, the green line represents the most affordable option over the next five years with an expected increase in the incremental debt service of 6.5 million and aligns most closely with our available budget capacity and is significantly less in terms of additional general fund dollars needed compared to the alternative options also shown. And finally, as we conclude the CI portion of the presentation, I would like to briefly review the fiscal year 27 through 31 CIP for the enterprise funds, storm water, parking, and the Burgland Center. As you are aware, enterprise funds are intended to be self-supporting, generating revenue through fees and charges that cover both our operating and our capital needs. the storm water utility fund. $3 million in debt is typically issued each year with any excess cash generated from operations directed towards capital projects. The parking fund does not currently rely on debt um and instead uses available

cash and their positive net position to address capital needs as they arise. And both the storm water and parking funds do pay for their own debt service. And last, as mentioned earlier, the city allocates to the Burgland Center 1.5 million in debt each year for capital improvements. Although again, the city subsidizes the Burgland Center as we pay for their debt service. And with that, I turn the budget budget presentation back over to Miss Turner.

Thank you, Miss Kin. Mayor, Vice Mayor, and members of city council, I am pleased to recommend a balanced budget of 421.5 million. Balancing the budget required very difficult decisions this year. Again, the budget was developed with current and future economic uncertainty, less than moderate revenue growth, meals tax sunset adds to future uncertainty, financial resources not sufficient to address all priorities. Adjustments in our programmatic expectation. I'm going to turn it over to Mr. Kaki to go over our budget timeline. Afterwards, we I'll be available to answer any questions that you may have.

So, in looking at the budget timeline, just to give you a recap of where we started, as Mr. Turner has already introduced you know in January we had briefings March as well as where we are today but in November 8th we had a very important presentation which was PFM and they highlighted a 3.5% growth in expenditures with the revenue at 2.9. Currently we're proposing a budget of 13.751 million which is a 3.37% increase. So that projection again was based on a 10-year look back and also looking at some of the economic factors. We moved on to January 20th. We gave you a preliminary balancing status, $18.9 million out of balance. We received 31 million in requests. We had 12.833 million in revenue growth that we had projected, the lowest we've had in the last 5 years. We then moved on to our February briefings. 5.1 million out of balance in March, but also we highlighted the need that we have. So our $5.1 million budget was our need needsbased budget. From that where we are today on March 23rd, we're proposing a budget that looks at 8.2 million for all other operating expenditures. 5.2 million is allocated to compensation. 1.15 is allocated to RCPS and I do want to emphasize that RCPS funding has not decreased in the incremental growth that we provided as you saw on the chart. Additionally, 4 million to all other requests contractual fees for professional services technology maintenance contracts which is contractually obligated to carry on moving forward. And we made 5.6 6 million in base budget reductions.

So, we do have two community meetings, April 9th and April 16th, where the public will have the opportunity to ask any questions regarding revenues, expenditures, capital, as well as external agencies. We'll have a public hearing on April 23rd, 7 o'clock, a budget study on May 4th, and our adoption on May 11th. With that, I will open it up for any questions and thank you for your time.

Thank you, Mr. Caseki, Miss Kaitron, Manager Turner. Thank you for your hard work on this and your presentation today. I'm going to turn to my colleagues to see what questions we may have. I'll start down with you.

Thank you. So, on can you back to page 22? So under the risk management the um insurance do I understand this that you're reducing that you're cutting that? No, these are under the funded. So that is we're in we're we're increasing those premiums based on the I believe it's like two to three% typically every year. Then on So what's the difference on that? And then I guess I'm confused on page 30 the risk management reserve that's being reduced.

Yes. So typically we budget for um a riskmanagement reserve similar to what we do with our payroll acral. However, due to funding constraints, we wait usually until mid year so that we can identify what's happening with our expenditures and revenues. So right now the um bud the balance will be a million dollars. It started off at 2.4 four, but we've decreased it two years in a row pending surplus that we do have if we do have it at the end of the year. That's where we do our self insurance. Correct.

Correct. Yes. on page 25. Um, the approximately 80 to 95 positions that are freezing. Is that part of the 29? I guess I'm just real concerned.

So, those are two Yeah, two different categories. The 80 to 95 will be the laps that we have to make moving forward in 27. But we initially unfunded 29 specific positions in order to accommodate the 2% but also due to funding constraints didn't have enough revenue. We had to look within our personnel because compensation is 172 million of our operating which is the largest expense that we do carry.

And if I can add um Mr. Mayor if it's okay. Um so the the 5 million that we have um in our budget to balance our budget is for vacancy savings and while that is not abnormal to have I mean GFOA states that that's that's an abnormous kind of best practice it's the amount that we have 5 million for our size budget is way too high. So basically, in order for us to remain at a balanced budget, I have to maintain at least um with the five million, it goes down to about 90 positions that have to be vacant at all times. And so added to that, we needed additional positions. And so when we met with our all of our departments, we identified 29 specific positions. So the 90 positions can be floating but we have 29 positions that we have unfunded for this year. We haven't gone done away with the positions but they will not be filled for FY27.

And then again on page 30 environmental management um can you tell me like specifically what that will be? Is that so waste management trash not getting picked up or

Yeah, that is under the uh public works. So, it's really 62,000 from the encampment costs. So, because encampment cost cleanup um is not a consistent um expense that we carry. Something that we looked into was look within the base budget and then if we do um if we are in a situation where we pick up more operating expenses which is why we're initiating the managed hiring um in terms of covering some of these expenses and wreck like our mowing season. So that is something that Go ahead.

So that that that definitely could um be a part of it. Um right now on mowings um we do uh it's every 14 days. We do every 14 days. Um should we because of staffing have to go to um a 28 day is something that will obviously advertise but it just depends on staffing levels. And the only reason why I'm asking these questions is because I do remember yes

um we will get a lot of complaints because under code enforcement they go out and mow a private citizens property. I'm going to tell you what they're going to say to council's going to get a lot of complaints about you don't follow your own procedures so you're billing me. So I would just be cautious of how we might handle that going forward. You may have to do a little bit of lenience on that going forward to just be fair. It's kind of like, you know, we tell our kids don't do drugs and don't drink and we do it. So, you know, start with that going forward.

It's true. No, I understand. My kids remind me, well, you did that when you were uh I think that's all of my questions. Thank you, Miss Powers. Mr. Um so uh my first question is um looking at f fuel costs and things like that obviously uh things have changed in the past weeks. Um what do we do in the situation that uh you know all these costs start to go up uh on us?

So um again it goes back to manage hiring. Um, our compensation is the largest part of our budget. It's 172 million. That is the largest part of our budget. So, if we have non-discretionary um items that we have to pay for, I'm going to have to look at look at it from a compensation standpoint for staffing. So, the good thing and the bad thing is that we do have a high vacancy rate rate because um it's difficult um in some of our positions to hire because of salary. Um we're not at a point where we need to lay staff off, but we certainly when I said when you know as I spoke with all of you when we did our two and twos, we're going to have to manage this budget. We don't have a lot of wiggle room or flexibility. We're absolutely going to have to manage this budget every single month and which may require us to shift every single month. And

the other question is for Miss Kron. Let me find my question is about the bond anticipation notes. We have uh you know as you said before bond anticipation notes are not a bad practice but one of the things that you have to do is make sure that they're being paid for in advance. So my question to you is why is there such a huge amount of bond anticipation notes coming to us? That's $57 million worth of our our debt service.

Yeah. So the 57 million is comprised of partial amount of the 2024 approved CIP projects and a portion of the fiscal year 2025 CIP projects. So while the debt with CIP was approved to be issued with staff turnover that didn't happen. So when it came time the projects needed to start right they had been approved. So fast forward we have to basically have a larger than normal bond issuance to cover all of those projects. So with that being said, what we should have done is also set aside more money for debt service for future debt service in anticipation of having to to uh permanent finance those bands.

That wasn't done and that was not done. That was not done. Yes. Thank you. All the questions. Any questions? Yes. Okay. Vice Mayor, any questions? Sir, thank you.

Can you help me wrap my head around? We keep saying um that we have low lower growth than expected and I know as we're looking at our real estate tax increases, the valuations, those went up about six and a half or to 7%. What would the ideal um average annual increase be? Because my understanding was it would roughly keep pace with inflation. So like two 3% would be what you would a community would ideally expect by their average annual real estate increase,

right? So, if ours is going up 7% next year, and it went up tremendously the past few years before that, I guess what I'm struggling with is it sort of feels like we're insinuating that we want these big high property value bills to our residents because we've seen a huge increase in real estate income. And so for it to go back down to 7%. That's still high. But we're saying, well, it's low. It's low. That's not what we would like. So we want it to be really high and we want our residents to have these really high real estate tax bills. I I don't think so. So I don't really understand where we're getting that narrative that it's low to moderate growth when the real estate I mean a lot of us are scratching our heads wondering where did all of that money go over the last like so many years, you know, when so much came in. So 7% doesn't seem like low to me. And then we also know that the um prepared meals tax data from last year showed that other than December, it was above the year before the year prior. So that's not that didn't go down overall either. So where is the low to moderate coming from that narrative?

Right. Your your um assessment,

right? And if you're looking at this is a I guess the perfect illustration of where we are. The one thing about revenue it's cyclical in nature. So it comes and goes and if you have ongoing costs like a 35 million in compensation and 24 in education that puts a burden when um the revenue decreases. So we run into an issue where we have expenditures outpacing revenues. That's the I guess the simple answer because right now inflation when it went up costs went up and we have to maintain that same level of service and that's where we're running into this situation at that 6.9 where we can't keep up with the fuel cost, the overtime, the temporary wages because compensation has gone up on the base but also you have education that we've been funding handsomely in the last four to five years. So that shifts our priority as we go into fiscal year 27. And I think PFM's report narrates that perfectly because if we hadn't made the adjustments we made last year, um I'm not sure if you follow other localities, but they're doing the exact same thing that we did last year. So this will be growing pains going into fiscal year 31. Part of it is we did defer a lot of maintenance and we're playing catchup with the meals tax. But I I I do say I don't make any promises. As long as we keep the same staff that we have moving forward, we'll be able to predict some of these issues that we have.

Thank you. So where would we be if we the increase in real estate valuations over the last few years was somewhat unexpected. I don't think that folks saw that coming. So preparing our budgets in the years prior to that, we weren't banking on all of that money coming in. Correct. So we got this huge increase in money, right, that came in. What would have happened? Where would we be if that hadn't happened?

So essentially, um in in our case, what happened was um we put a lot into staff compensation and we put a lot into staff compensation because staff was wolffully underpaid. And so we're we're looking at reoccurring costs that becomes my base budget. As an example, my base budget this year, my my budget this year 407 becomes my base budget for next year. So I started off at 407. Any increases on anything, whether it's compensation, whether it's fuel costs, utilities increase in medical, all of that has to come from growth. If it doesn't come from growth, that means I now have to look at my base budget and make cuts. And so if if it was less than 6.9, that means I would have to make more cuts. So it it is, you know, m Mr. Gazaki um you know, said it, you know, quite well. If we can control how we spend, we cannot control the revenue. And so every single year we have to look at where we are as as a base budget versus what is our growth and if we don't have growth we know that we have contraction and we're now going to have to look at our base budget and make those changes appropriately. So the reoccurring costs which are staff salaries and compensation both for us and the schools because we had a $62 million growth over the last five years which is significant for for a community our size. It is 35.6 of that did go to compensation and 24 of that went to schools. And so if if we continue for our revenue to continue to go down, we're going to have to continue to make cuts.

Is that Miss Turner then does it do we have to set the number the you said the base budget from the year before automatically becomes the base budget for the next year? It is that a requirement? That's how we have to do it. Well, those are my reoccurring costs today. And so if if we need to make changes, then I have to make it from that 407.

Well, I appreciate that. I'm not a financial expert, but I said last time that we talked about this, it just feels to me like we have we do not have a revenue problem so much as we have spending problems and accountability problems. And some of what we heard from Miss Catron about failure to take out, you know, loans that were supposed to be taken out. Um we're looking at the scenario that we're in. Um, and again, we had record amounts of cash coming in and we're still in the situation that we're in. So, to me, it I just, you know, it doesn't really make sense. I do have a couple of other questions I'd like to move on to, though. Could you give us, Miss Katrone, um, you mentioned that we need to be mindful of the adult detention center. Um, but we didn't hear, do you have an estimated cost for that and a a timeline for when we might need to be thinking about paying that,

coming up with that money? Well, for the extensive maintenance and rehab. So, a meeting with engineering staff a few weeks ago, um, a minimum estimate is about 58 to 59 million. 58 59. Okay. And when would we need to start factoring that into our thinking and planning for I I think there are some further discussions that are going on right now um as to how we would manage and move forward with

So we're working with the sheriff's office to kind of explore different options. I will say the estimate that um Miss Katron just gave you is just an estimate because there's some criteria that if you um do too much into the jail then it has to meet new standards. So certain of those items might trigger that point to where then you have to do even more to the facility. So just be aware that that number may go up if it hits that criteria. But we are exploring various options and trying to solidify that number and meeting with the sheriff's office in order to see what that trigger point might be. And so once we prepare that, we'll kind of be able to present all the different options that we explored with that facility.

Okay, thank you for that. Um, one other question about the CIP. Um, can are we able to leave items in the CIP and zero them out such that if funding changes and we have to do adjustments or more money comes in or we're able to access grants or public private partnerships that we would be able to come back and have these projects not lose their place in line. Are we talking about removing them outright or leaving them in but zeroing them out?

No, they're they're in the the CIP. Um, we have we have a list of all the different um items that we have taken out and we'll make once once we're able to start putting items back in, we'll bring that back to council and council will make the determination on which items go back into the CIP. The plan would be then to take them out versus leaving them in at with the zero. Yeah. So, we we've taken them out of the the five years or they're still on the list to be included to do capital improvement. So council may have to if financial situations change, we would then have to debate amongst ourselves about where to put them back in or would they automatically go back in in the order that they were in? Would that be a council decision?

It would be a council decision. So I will I will bring them back to you um and I would I would make a recommendation, but ultimately it is council decision because it's a part of the budget. Okay, I got that. I'd rather we not take them out if possible just to leave them in there to show what our priorities are for our community and that we don't lose sight on the things that we have promised or said that we would like to do. Um, one other question on the CIP I believe and that was that I saw that the parks and wreck funding was zeroed out after FY27 that would have been on page. Can you tell me about why it doesn't continue?

Are you referencing this? I'm looking for the page. You said it's on page 27. Page 20 32. Yeah. So, the the 1.2 that was left in the CIP for park maintenance. Again, the only items that we're keeping in there are items that we had a previous commitment for, we have current obligations for and anything where we were we will try to maintain the existing infrastructure. So that is the purpose of the 1.5 million sitting for park maintenance.

So down on that line item though, park maintenance 1.2 for 28 29 303 31, we want the plan is to not have that money budgeted for park maintenance. Am I understanding that correctly? Yes. Um it is again it's just the 1.2 for the fiscal year 27. And so again as we recalibrate and look at our CIP each year, I mean it is very possible that funding and dollars become set aside um and be placed back into the CIP for those infrastructures.

Well, thank you. I think that's the last question I had. I would also agree with Councilwoman Powers that I think, you know, there are generally I've shared with you you all my frustration in the past about it feels to me like we disproportionately cut parks and recreation and we've done that again and again and again over the years. We chronically underfund it. It's a huge part of our not just quality of life and what makes us special and why people move here, but it's also a huge part of our economic development. And I think that we just don't uh you know, we talk the talk, but we don't always walk the walk. And um so I think that it's really problematic that so many of our parks and rec projects are being zeroed out. And then just to hear that our grass may not be mowed. You know, right now the 14-day schedule, um I think we average getting it to it about every 17 days or something like that because you got to figure people call out. It rains, you don't get to it. And you know, by that point, the park is pretty much unusable for people that don't, you know, can't go into the park. So, at 28 days, I would imagine that most of our parks are just going to be unusable for the public. Um, so I um I hope that we can uh as council look at some of what we've been presented and I thank you for your work. Um I'm going to have a really hard time supporting some of this as it is. Thank you very much. Um, the saner, I understand you're going to not uh freeze 80 some positions or not hire not fund 80 some positions.

Yeah. So, we have about um 80 to 95 positions um in u the 5 million vacancy. Then we have an additional 29 specific positions that we're freezing. So, it's a little over 100 position. Will you be able to let us know which departments will be affected? Yeah, we have that. Um, can you go to that side?

We have police, fire, EMS, and sheriff, libraries, parks, recreation, general services, and engineering. And my other question was about the public safety overtime. If we're not hiring those extra uh police officers or firefighters, we're going to we're going to need some money on overtime. So where would the money come from?

So the positions um particularly for um fire and um not necessarily fires have been um at 100% for some time but police um they have had a significant vacancy for some time. Um and again that that goes back to manage hiring. So public safety is absolutely a number one concern and so should we need to hire additional staff we shift in other areas because we'll have to. And I know one of the things that we have done is we have invested a lot of our public safety. Yeah. Maybe the public doesn't know that. Yes, we have. We've invested a tremendous amount in our public safety. Thank you.

Um not so much question comments. Uh first off, thank you all. Um, I know this stuff. Budgeting is not easy work uh by any stretch of the imagination, much less when you have seven different minds that control um somewhat all of it. So, thank you all. Um I do have one slight concern just moving forward because you know this one um while there aren't everything that I agree with uh in here uh one of the concerns I'll have going forward is that if we're in the same situation we are next this one next year about concerns about what we do because we've only cut so much and at what point do we talk about everybody's favorite conversation which is taxes. Um, so just something to be concerned about.

So, thank you all. Thank you. Thank you, Mr. Hagen. Just to ask, I know people ask me from time to time, and I don't know the answer to this. Um, can people volunteer, you know, like companies that do landscaping and mowing, can they volunteer to help mow the city's parks? Because I've had people ask me if that can happen. And so, you know, when we talk about partnerships, um, is that something that we could work on for the coming year?

So, I I will defer to our city attorney. Um, but, you know, as a city manager, I I would I would welcome help, but it just depends on um I know we'd have to have some form of agreement with them in order to do that. So, know what they said is they'd like, you know, they would do it and they put those little plaques in the park that says mowing provided by you know, somebody's landscaping. So, we do have that program like we do um I think it's the trail volunteers. We have anou with them and they have insurance and they kind of follow our rules and so yes, we allow them onto our parks to do the trail maintenance. So, if there was some group out there that wanted to do that,

I think that'd be something great we ought to look into. Um, and the only other thing I would just remind people going forward, um, thank you guys for what y'all worked on. I know this has been very hard on the entire staff, um, on our community and you know, I really do know that we can get through this as we sit down and work together professionals, uh, the managed hiring. Um, but what people really need to also remind them like what Mr. Hagen was just saying going forward as we look at the programs on the CIP that we've put off uh the Belmont library at $7.3 million that will just increase as the years go on that we have to do this and these are important things that we need to do. So, we we have to be mindful of this. And I just urge the community. Um, let's pull together, guys, and sit down and let's not be fussing and screaming at each other, but let's be professionals and work this out because we can get there. You do have seven people up here that truly care about our education, our schools, our children, our parks. We care. But it's just like your house. If you get a cut in your revenues and your revenues don't come in and your expenses go up, what do you do? A lot of people go get a second job. So, it's sort of like the same thing. So, I just urge everybody to let's please work together. And I thank you city staff very much for what you do.

I do have just one comment to make with regards to mowing. I know Miss Turner already mentioned, but it is not in the not funded. it's currently funded, but those are some of the programs we're looking at. As you um as council look at the proposed budget, sometimes it changed. Last year we proposed a budget, but it shifted by adopted. So, those are some of the programs we would look at if it comes to May 11th and the budget changes. Any other follow-up questions? Mr. Hagen, one of the things I did want to emphasize real quick, proposed budget. So, there is still public comment period um all that.

So yeah, so attend if you can and tell us what we're doing right or wrong. Um preferably what we're doing right. Mr. Sanchez Jones, Mr. Is it possible to look into um having the adult detention uh residents be volunteers to alone at the parks? Yeah, we can look into that. I know there are some um Yes, they do. I think that would be part of the trustee program which we would have to consult with the sheriff on. I know we don't. Yeah. Yeah.

Mr. Bison, I just wanted to um thank the staff. Um it's been a tough couple of years when it comes to our budget. Um and being here for three years, I've seen how the budgets have changed from previous administrations to now. And I'm really heartened by what's going on. Um I think that yes, Evelyn is absolutely right. Like we have to all band together to make make sure we fix this because ultimately the city is in this and so we all as a city have to get out of it. Um, but we I know that everybody on this dis is committed to this city, loves this city, and I know that we're always trying to make sure that we're doing economic development and things that we can to expand our revenues and bring more people here to the Reno Valley. So, I just want to thank you all for your hard work. It is going to be a tough time, but uh let's work together and get there.

Thank you. Any others? Well, I just have a couple things I want to touch on and I appreciate everyone's questions. I think they they convey our both our gratitude and our concern and some of the touch points for us as we move forward. Um I'm the longest serving council member up here, eight years and um we've been through some extraordinary times. Um I thought COVID was challenging, but this feels like a whole another level. Um, and it's a whole another level because of uncertainty across the board. I mean, that we're still waiting to hear. The state hasn't adopted a budget yet. So, we don't know what that's going to look like. And that has a direct impact on the schools, but it has an impact on us as well. Federal government, you wake up every day and you wonder what what's what's going to be played with today in terms of funding. Um, so so that's also a challenge and and that just reflects the overall uncertainty. I think we're all very concerned about a holistic budget and um and an equitable budget um as we're looking at different departments. I think um you know I share some of the concerns about some of the adjustments and reductions we're having to make uh particularly for quality of life uh areas, but I also think about our essential service areas and how those could be impacted. Um, a couple of questions I have. Um, we we've talked about managed hiring and and Miss Turner and Mr. Cassi, you you highlighted that the the more um the budget monitoring that's going to be taking place, kind of the guard rails that we like to put in place to make sure we're staying on track. Could you talk a little bit about what that will look like and what it already looks like? Because I know it's already in place, but can you talk for the public especially just describe some of what that looks like?

Yep. So, we have a budget committee um and it consists of um members from our um management and budget office as well as human resources. Um my staff um we meet um regularly, maybe two and three times a week right now, but we're certainly will be meeting on a weekly basis. But also, Mr. Keki and his team um all of them have individual departments that they manage and so they work with the departments the department directors and the financial staff and every month they go through their finances with them. Um that is something that's relatively new that's been implemented that they work with them on to ensure that they're within the confines of their budget. They understand what they need to do and we make shifts um as needed. That's going to continue. Um, and from a budget committee perspective, M. Mr. Caseeki and his team will certainly bring to the budget committee, um, if there's if he's seeing or his team is seeing that there are some, um, outliers that we need to address um, sooner than later, we will have to address those and right now we'll address those through um, compensation and through um, staffing.

Thank you. Um the second question is we've talked some about the challenges of rising costs and managing those from fuel to uh managed hiring to just compensation. One of the reasons we've made $35 million investment in compensation is to be competitive with localities and we're still not in some fields. I mean we we make offers to people and they say oh I need you know 60,000 more than you can offer. So that's some of the reality that we're facing. uh which is why this continued investment in our employees and and these compensation levels is critical um to having a healthy and healthy city. Um we continue to um though we've had to make some adjustments uh related to the schools, we continue to fund them at a a really good and healthy level. I think all of us here would like to see that increased, but we're we're in the reality that we're in. Um I know a lot of questions have come up about the the fund balance. Um it is state code that fund balances are returned to the locality at every year for 15 years. Um we basically had a relationship. It was not formalized in writing but we allowed the schools to to keep that fund balance to utilize as they saw fit. But there was always the uh inclination that if the city needed some of that funding back uh we could receive it because it's state law. Um, last year was the first year, uh, actually the end of last year was the first year we've asked for that funding back so that we could analyze that based on what our needs are. So, um, I I just want I I need the public to hear that. Um, and we're not taking something back. Um, that that funding has always been intended to be returned to the locality and then reappropriated. Um, but it reflects the generosity and the investment we've had in the schools.

It also addressed the concerns we've had about deferred maintenance that have been far too long addressed. And to the point that the vice mayor made, particularly with our park assets, one of the realities that we have to wrestle with is if we defer maintenance on things, whether it's grounds or buildings or equipment, then that cost just goes up. and that list of deferred maintenance items goes up uh to the point that that we can't function uh in a way that we need to function. So it's we have to strike that balance of what we're able to do and and which services we want to prioritize. Um, so I I wanted to to remind us that as we're as we're looking at the CIP, as we're making decisions now to uh make course corrections to pay down that debt, the sooner we can pay down that debt, the sooner we can add some of those projects back in, right?

And they they don't disappear. They remain on our priority list. But as the vice mayor said, there we may not it may be a zero line item in the CIP, but they remain on our priority list. And I would hope that um that the as soon as we can pay down some of that debt, we can rep prioritize some of these projects. And we may we are considering what that um that fund balance could go toward. Um some of that could potentially be parks and wrecks. Some of that could be uh deferred maintenance. Um you know, we've already designated some of it back to the schools. So, you know, it's why we stay in conversation with them about what their priorities are. Um, I think the last question I had was and and it's really just more of a reflection. Um, when we talk about growth, there are so many factors that tie into this. Um, I' I've had some interesting conversations with citizens in the city lately. had one citizen come up to me recently and say, "You know, y'all just need to raise taxes. That's the best way to get revenue." And I said, "Well, I hear you. Um, and I also hear the burden that a lot of our taxpayers feel right now. Um, I met with the mayor of Charlottesville over the weekend and they're a much smaller budget than we are, uh, a smaller city size, so their budget's about half of ours. they're dealing with some of the same challenges we are uh in terms of revenue growth and they have a much lower tax rate than we do in terms of real estate. Um so if we raise anything um it's both that balance of it it can potentially generate revenue but it can also increase the burden. And so when we think about our population and pe wanting to retain a affordable cost of living that's the balance that we have to think about. Um,

and it's not just the burden potentially on property owners and and people who live here. It's it's the burden on businesses um and and how they're they're, you know, striving to to succeed in the world that we're living in right now. Um, but we're limited on how we can generate revenue. Um, it's real estate tax, it's personal property tax, it's sales tax that and that's solely based on how people are spending money uh across the city. uh transient occupancy tax. How many how often are people traveling? Are they reducing travel costs? So, that's going to be reflected and I think we've seen some of that reflected here. And again, I go back to what where I started at the beginning, the things that we're uncertain about. Um, on the state level, there are conversations, and I I don't know if this bill was passed this year or not, but a study to potentially end the car tax or personal property tax. If that goes away without being supplemented by the state, $30 million gone. And that means we have to find $30 million to reduce. Now, I hope that the general assembly will be smarter than that and work with localities to find ways to supplement that or replace that if they do phase it out, but I can tell you a lot of localities are concerned about that. Uh because that that is a source of revenue. That's that's a big chunk of our our budget. So, we have limitations. Um but the biggest opportunities for growth are related to how do we grow our tax base? Um you know, we think about billions of dollars. I I Mr. Bratton brought to us I I can't remember the exact figure of taxexempt properties in the city, whether that's because they're governmentowned or because they're nonprofits that have gotten tax exemption. That's in the millions of

dollars. So, that's not income that comes in through the real estate tax. Um, but we we're looking for ways to grow the tax base, which means bringing in more businesses, which means looking at land opportunities, investments. we're landlocked. We don't have a lot of options in that regard. Um, so it's I say all of this to say it's very multifaceted and we're all thinking about this and we're trying to find the best way forward. So I want to thank my colleagues for their hard work on this. I want to thank the city manager and the budget u management and finance team for all of your hard work. I I know I've not sat in on all of the meetings, but I know you've been here over a lot of weekends and that doesn't go unnoticed. Um, and now it's it's our budget essentially. Um, so we have the opportunity to hear from you all, the public. Um, I want to reiterate the dates that were shared and have been shared uh every step of the way in our process. We have two comm community actually two community meetings coming up. One on April 9th at 6:30 p.m. at Williamson Sunro Library and one on uh April 16th at South Rono United Methodist Church also at 6:30 p.m. April 23rd we have a public hearing that will be held here in the council chambers. Um this will be not only on the proposed budget but also tax rates. So, it's an opportunity. There will be multiple public hearings as a part of that that you'll have an opportunity to to come and speak about. Um, on May 4th, council will have our final um budget study, and that's an opportunity for us to bring back what we're hearing from constituents, what we've been thinking about, any adjustments that we may want to have

considered. And then on May 11th, we will do our formal budget adoption. And hopefully we'll have some clarification uh on the state budget by then. They have a special session on April 23rd. We'll see how long it takes them to sort all that out. Um so we will have some answers by then and uh on a federal level, I think that's just going to be an uncertainty for a while, but we'll keep doing the best that we can. So uh thank you all for your presence today. Um, and that concludes our budget presentation. We have one item of new business for a walk-on closed meeting, and it's a communication from my office to convene in a closed meeting to discuss our council's code of conduct and ethics, which is something we adopted last year and we continue to do work on. Um, and I need a motion and a second. So moved.

Second. All right. Thank you, Council Members Vol and Powers. Madame Clerk, will you please call the RO? Powers. Yes. Okay. Mr. Hagen. Hi. Miss Sanchez Jones. Vice Mayor Maguire. Hi. Mr. Nash. Hi. Mr. Vonson. Hi. Mayor Cobb. Hi. And the motion is adopted. So, we will recess now for our closed meeting. And once that's done, we will come out and certify our closed meeting. And um our next meeting will be Monday as a council will be Monday, April 6th at 9:00 a.m.