Finance Committee - Regular Meeting

Hey, Robert. Yeah. Yep. Alright, Sean. Ron? Good afternoon,

and welcome to the Monday, 04/20/2026 meeting of the finance committee of the event.

It's the

council. I call the order at 04:30, and we have all three of the council member members of the finance committee in attendance. Have an agenda that was set out ahead of the meeting. I would like to make a motion.

I'd like to make a motion to approve the agenda. Second.

It's been moved and seconded to approve the agenda as published. All in favor, say aye. Aye. We have an agenda for tonight. Sean, do we

have anybody signed up for public comment this evening?

We have a nobody signed

up in in council chamber for public comment, and nobody signed up online

for public comment. Okay. How about the minutes from the March 16 meeting?

Oh, I would love to move to approve the minutes from the March 16 meeting. Second.

Right. All in favor of approving the March 16 meeting minutes as published, say aye. Aye. Great. We have a set of minutes approved. That brings us right up to the business. We're gonna start showing us the budget cost allocation spot.

The cost allocations are a way to administratively distribute fairly So the one thing that people need to realize is that for the indirect acceleration, you're looking at the last completed year's data. Mhmm. And so, for example, normally, parts that they need to send send you each year. But for some reason, this year, they were predicted. That cost will be recognized as a cost allocation until.

So some of the fluctuations that people see are actually going back to two years. It's wider.

I'm gonna say that happens a lot. Yeah. And departments is and as we put the budgets together, again, financing does direct cost allocation. Partners will see that more fluctuate. And they'll say, why didn't you add anything this this this year? And I don't know. It's two years ago. Like, you guys these, and so that's why the indirect cost is up across the board for departments. So I would say, you know, during the budget process, I meet with apartments, probably one of the most common questions I get in the financing gets is around the fluctuation of the indirect cost.

So two questions on that. Like, if I understand why it needs to be that delayed.

How did budget like,

how does that help a budget manager plan what their budget is? And is that really meeting the intended purpose of you're not exactly recruit recouping funds at the time of service the way you would if you were at this I don't know. It seems so delayed. It is it is delayed, but, you know, he started a budget process in May. And so we don't even have.

And then, again, we're we're already starting to decide. You have to utilize the actual to recruit those costs. It it is in some ways, it's actually kind of a nice thing because you can have a a large spike. You do a on your average. I think?

I guess. Like, you're averaging. So there's a smoothing factor, so you shouldn't see too much of the engineering are your costs. And so, like, the numbers I have are for 2024, but we had allocated out for each department, and so there are many different factors. Everybody's.

You know I mean? Maybe you're gonna

say this in a another slide, but the only reason this is really important is we have lots of different funds. Right? So we don't just have a general fund with utilities. Utilities, okay, it's paid in utility rates because their fair share of indirects. So parks, every department has some share of these indirects that gets factored in our general fund budget, utility rates, parts fees, all those things take indirect costs to account as part of development budget. All feedback in front of the three models.

So this is just an example. There's a little administrative cost of 17,800,000. We utilize factors such as FTE, number of agenda items for council, the gold request, number of unions for HR and recruitments, and for IT devices. And so from that, that cost gets allocated out. That doesn't mean that all we can allocate out a 100%. So there are some some funds that we determine can't support the cost. So so the general fund has to absorb those. So, like, housing and homeless are hard. They we don't have the flexibility to add that in there because it's, you know,

I I am wondering. I I I was just getting some other downtown rental rates.

And so $52.40 well, if it

was a thousand foot space, that'd be

$4,300 a month.

And so I just does that mean? Is that including utilities? Does it include us budgeting for replacement of the city hall?

Where are we at?

So the number includes security services and the and all we do. And the other maintenance, painting, all of those things. And then there is a capital deployment and then also debt

service. A debt service on signal. Yeah.

Yeah. That's kind of a good one.

I I just I I think this is for me, this is a helpful setup as we start talking about department budgets and the costs. Think about the way that the shared administrative services and maintenance are the cost is shared.

And I think it's a also, let's say, you know, this process is audited every year for them to be a solid method to account for these costs. So that's always something good to know that this isn't something that is going on on methodology that's starting through. Review our indirect rate.

And then the federal case is that when we have a federal grant, we're allowed to do a certain amount of indirect charges as part of what we're asking for the reimbursement or how we're spending those.

Yeah. Right now, we just do the. Wanted to use our plan and get it and the.

So the de minimis is that there's sort of a prescribed message that says, this percentage,

you can just charge, and you have to do additional documentation for the online? Yeah. The other thing too is you'll remember that one of things that we have tried to work on with indirects is. Yes. So for for years, we just addressed it at year end. We'd say, oh, what? We got downside year end. We got $3 dollars up over. Let's say the first money on top, but it don't compare. And back to Mike's predecessor, you know, we've been working to say, that's really not investing.

So how do we bake into the indirect costs the the capital piece at a better rate so we're not happy to do that? We started down that path. So all the departments, general fund departments, saw a pretty substantial lift in their indirects last couple of years as we added that to spend so that we're not relying on one time money to fill the budget that is more sustainable. So that's just a one change that we made in indirects. It's part of that SPS study, and we asked them to help us make sure we're accounting for that. So that's something

Thank you, Jonah. I I really appreciate these other spotlights, and you're welcome to chime in if either they need to be different or it's obvious or not.

Excellent. Okay. That's good. Yes. That's great. Cool.

We're we're going to pivot to a a nice segue into building some maintenance,

which is just right.

And we have open for instruction, Mark Russell. Please do. Thanks, Mark.

Also have patient, but that really feeds into our.

This should help tie it all together.

So we started this process, updating our facility submission assessment and full launch completion plan in January 2024 that took about a year to get that RFP out and get our scope ready. This is about. This is the fourth time we've done facility conditions in a bit. So we're pretty well versed in the side of things. That FDA really is gonna inform us excuse the frogginess in the throat.

So but this is our first time with a plant. So I'll move into that a little bit later. So I wanna hit the observed efficiencies for FCA because that So it's really critical to make sure that we're we're highlighting the FDA.

Then we go after natural gas. Slide.

And so here is the high level overview of the 15 facilities at our of

our

facility condition assessment. And as I said earlier, are focused on. It's, again, important to state what the inherent efficiencies are, because when that asset is constituted for life and is recommended to be replaced, that's when we move to Wi Fi. Some basic examples of that. Hot water tanks last ten, fifteen years. Split units or furnaces, fifteen years. The cost saves 20. Steer doors last twenty years.

Extended.

Then

I'll get yeah. So it's fine. The asset condition score on the right, green is good. Yellow is fair. Orange is poor. Red is So we say critical in stating that. That doesn't mean that the facility is a backer straight. That means that they need significant investments very soon to keep up with this life cycle. The Olympia Center is one that I want to highlight today, and I'm gonna do a little bit more of a. So let me just.

What is the building? So

I have questions about so turning to point out. Did interesting. So the main thing is 551 and are low in scoring. Although, you know, both of them have recent recent years have been operating solar panel systems. Did that not did that not help with the scoring of this?

So we can put in solar that can help us reduce energy costs. But the panels and the wiring in the building, of a sudden, they could still be substandard. So they don't improve that. And because there weren't solar panels before, they will now in subsequent building condition assessments, they'll look at the solar panels. If those solar panels start to get that applied, you'll start to see those.

Alright.

So next slide, Kim.

So this is just another way to look at the facilities in a shorter time frame. We were looking at a six year process, and now we are process. So everything you see listed, again, if we if we replace every all the observed deficiencies that match useful life, this is to replace. So, again, like, what So this is just a different way to look at it. It's year by year, and we have a six year six year projection, thirty

year. Thirty year. I don't know. Sixteen year. About 28,000,000. Somewhere in there. It's yeah. But that's not

what this slide's about. I apologize. It does show a thirty year cost projection just as part of the assessment. It won't show it.

So one question I kinda had throughout this,

and this might be a question. Timberland library. Long term for that billing, like, should is that are you calculating that in? Or what

Yeah. I think part of why we started having the conversation with Timna about space is because we we observed efficiencies in the build and the cost continue to to maintain right now. So this idea of working with Timna on space is can we get in this a different way and then cut down the amount of money that we use for the library for the long term? So that's really what's why we're having this conversation. And I think the library also is part of the conversation. They they acknowledge the efficiencies of the building, how much worth it. So it seems it's into it. And they kind of feel like the replacement, they're kinda outgrowing that within that space. It might make sense to look at their their alternatives. So that's all of those things together that are really driving that conversation on.

They have it in their back. Like you wanna Okay. Yeah.

You know, orange and yellow. Yeah. So, like, I noticed, don't

pay attention to the details of that. So so keeping the same theme of that six year outlook, this is really something I wanna highlight as far as a new tool looking at at at McKinsey. So can't see up there, but if you you look at the red upper left corner, those are critical assets. Those are assets

I

guess it's it's kind of a personal landing question. It's that if something is down here in the green, how does it ever rise to being a capital project?

So moving on to the Olympia Center, this is just a snapshot of some of the at the Olympia Center. And so this this facility is four years old. I'm gonna connect the dots here here in May. We talk about electrification and how those facilities are. This is the last slide focused on the soil condition assessment.

And this is an example of clinical data center of critical assets that are a really fast release for life in the next five years. So the assets shown in this are elevator upgrades, h three, sear replacement, 100 meters is more functionality. Total five year cost for the elevator center is $3,400,000. We have completed some of the interior doors that are working on now. The total ten year cost for this facility is 6,100,000, and it can go out thirty years. And the first one on the side is $40,000,000. Thirty years just for.

I wanna highlight that because it

had some things in the critical box that you really want. Moving on XBA. I'm gonna move into the.

Just ask, with this Olympus Center also being the lowest conditioned reading on on your chart facilities,

How do you

how many it falls on us? Where does the conversation happen about end of life or gutting or use it or what? I mean, when they're when you reach a point where we're unlikely to bring it back into the green. So I guess that's true for the green

and center for that. It's also right.

Yeah. How do you think we how do how do we navigate that that space between having a really long list of correct overpairs needed and deciding if they

did this to go different? So

Yeah. That's definitely a collaborative approach.

Does your team do the sort of analysis about the the energy and weatherworthiness, the shell of the building, the ADA, I mean, like, the things that as as current building technology has marched along. Does that does that assessment happen also in these condition assessments about whether they still meet current needs and safety requirements? Looks like I understand that, really, you're focused on maintaining the inventory that we have. And so at some place in collaboration with your knowledge and the policy decisions we make, you have to think about our do do ADA upgrades in a building elevator in Big West. Is that is that conceivable, or is that or is that I mean, at what point does that become just a must have for us?

And just on this conversation, and I think you all know this, it's also a lost time to make decision out longer. I mean, if you were talking about the maintenance center, it's been long past its useful life. Right? But by just by necessity of where we are with budgets, it's it's hard. We've got multiple millions of dollars in snow. So so we ended up putting money in, but then we do get to a point which we got through. And Here's what I would say. Okay. We've got an apartment plan, which is why we started out this type of the road and new ways to get us to a different place with maintenance. Along the board, we grew out of all of our own mistakes and it has to slide.

Okay. So I don't think there's a perfect answer there. I think, you know, Eli and his team do a really good job trying to keep me and be far down where we are. And then, you know, Mark is really, you know, the one that comes to me and say, hey. I really think we're at a place where we really just aren't having we're putting good money over bad.

We really need to have a different conversation with the council about a longer term. So I don't think there's a perfect answer, but we definitely see it coming. We kinda kinda know when it's time to have a conversation. Certainly, as we look at Columbia Center and we start to see it, right, and we start to see kind of investment. I think that's why we had a conversation about two, three years ago with former director Simmons about what if when we did the aquatic center, we looked at a different way to get our recreation facility, and

So now we're transitioning to our electrification and decarbonization plan. So what what does that mean, and why are we talking about that today? Decarbonization is a process of limiting human cost into another greenhouse gas Electrification is really focused on removing fossil fuels, not using gas,

and.

So this is done at facilities primarily by more being focused. First is we wanna maximize the use of our facilities in the equipment while past the rest of life, and we have done a very good job of that in some cases. Second is to improve energy efficiency. We wanna focus on how we use energy in a lower amount as possible, although it could be after conditioning, natural gas, electricity is

a challenge.

Third is converting away from natural gas to electricity that enables long term 100% power. The fourth is transition of how you receive that electricity from PSE. And in this case, whether it's on-site or off-site, you're utilizing. It's really I'll say fourteen years from now, I can establish a 2030 target 59% UL 2018 ish policy. That's why we're doing this work, and that's what we can change to what we see on them when we're successful.

I

suppose that you're not seeing this diagram. It's called a safety diagram. I thought was a very interesting way to show some data. So all of our facilities are shown on the left, and as well to the right, how they are using the right. Overall, we have 44% of renewable electricity that includes that green direct or on-site solar. 26% is mixed fossil fuel, some of industry do call us power.

Overall, we're using 30% of

all of our energy at least in zones with natural gas, and we need all of that. So one of the examples, if you can look at this slide, is city hall. 90% of the total energy use is renewable electricity on-site or green direct. So and most of that comes from that green direct comes from wind farm. We also have 25 kilowatts on-site solar panels on our roof installed in 2013.

That would be included. The gray that you see on city hall on the bottom is that's less than 10% of our energy use. That is all natural gas. So so that's a work on the solar transition from grade theory. If you wanted a second example that stood out to me personally, it's the Washington Center for Performing Arts.

It's third from the bottom. It's hard to read. We have no solar panels in this facility. There's no green interact So big picture, the same task is converting green. Are you ready to green?

The electricity pie chart on the left is showing infrastructure. That is by running our. Is all already using your. We put this in here. So the same concept with the electricity on the left is our green direct portion of the pie chart.

That gray, that nonrenewable, which we're calling that big source electricity, is really our focus. The fossil fuel pie chart on the right shows a huge reduction by fleet utilizing renewable diesel. So we wanted to be something we're really excited about. Tom will be sharing a little bit more about that in our next presentation. You can see the fossil fuel used in fleet and natural gas are facility soft, significant efforts to lower CO2 emissions on grade two grade.

So

I promised we'd talk about the Olympia Center a little bit more. So here's a proposed project. So we have HVAC mechanical and electrical assets that are past their life cycle replacement at the same time, to electrify these assets, it would cost an additional 3.7. Oh, I wanted to make sure. That would be to eliminate that natural gas in the facility. So a total plan on the budget to do all this work, it's gonna cost us $7,300,000

to. And

There's use of this target. So. That's not it was just a note that we do have

some investments to do there.

So decarbonization cost by building. So shown as ship is at full cost, just over $36,000,000 for all the facility electrification investment. So we're we're targeting that '24. Think that it also includes 4% escalation or inflation. And as you can see, our top three facilities, Olympia Center is is staggering at $8,500,000, highlighting a chunk of that upfront.

Second is obviously City Hall at $6,200,000. That's a redesign of HVAC. So when we look at it, so the emission is actually not replacing 95. And then the third is

the maintenance center. Think we're at that. Alright.

Let's go to fund the revenue. So our how much money do we have in Fund 335? That's our facility. Here's a high level breakdown shown on the slide. Typical annual revenue into this fund over the past five years is averaging $1,800,000. We updated this today as we included $1,000,000 into city hall. That's So we updated this slide to $3,000,000, and there's a breakdown of where those funds are coming from. E and O tax generates approximately $700,000 a year. City hall rent is approximately $1,000,000 a year. This is from March.

Meeting center rent is generating approximately $400,000 a year. General fund transfers traditionally is transfer on another $700,000 a year, and we also have some investment earnings that generate. The bottom line is highlighting our fund balance for March. It's approximately 500. Last slide of the day is our breakdown of our funding needs that combines that together.

So I'm using thirteen year funding needs to to mirror that. That's. So our SCA replacing assets like in time is coming up to $61,000,000 and that. Funding projections for that on average of $4,700,000 annually. The building electrification and decarbonization roadmap total is $36,600,000. That's $8,000,000 annually. Total funding projection over the next thirteen years for for $97,600,000, and that average is 7 and

a half million dollars annually.

So leaving an annual discrepancy or deficit of $5,400,000, that takes into account that 5,000,000 we have in the bank and so our revenue goes to the account. So that's that's our subject now. I have a I'm gonna say it's

a related question, but a question. So as we look

towards electrification and the cost associated with that, are we how do we account for it and budget, but, like, energy cost changes would be associated with those recognizing that, you know, for some of us, our electric bills are going up faster and other things. How are we seeing that?

Yeah. So every year as part of doing the budget, you know, we take into account both what we're getting from before. That is factored into everybody's budget. So we general fund everybody. It's factored into our budget. So we take it into account. But I would you know, season of raise raise, we factor into our budgets. So part of this work is if we can for example, solar on buildings increase our reliance on outside electricity return and save us money on the building operating rates. So it's kind of two pieces to this whole. One is there's our ability to address climate.

And two is if we did all this electrification tomorrow, if you might have all the money in the world tomorrow, all this work that, they're I don't know how to what it is. I don't know. But you probably don't know either, but there's a significant amount amount of, say, actual cost year over year that would help with our. I I think that's where you were going, but if I missed it

It was where it was partially where I was going. The other place is just again, let's let's say next year, we match. We have no like, let's let's electrify the one piece. The energy usage next year is just gonna be different than this year, but not a different solar. Like, I yeah. Yeah. I mean, I I know for what we use, we obviously can recognize year over year, but, I mean, when we're fully changing from, like, a chunk of natural gas to a chunk of electricity, like, budgeted for that.

It is a it is a bit more complicated. The good news is we have histories. I mean, the finance team has histories and utilities, buildings, and places. And so we can look at averages and say, okay. How much of that and most of us get a bill that shows us financial graph versus time electrical. So we can most of time take those and say, okay. We got rid of natural gas. Our electricity use may go up. Right?

And what do

we think that impacts in terms of what we're going down? Yeah.

No. Thank you. I'm not pushing that, but I

mean, you're in some kind of hitting on my head is that you're So so this is a new software that we have called. It is just a way to filter assets. So this is a six year observed efficiency that you're looking at. Upper left is the red. Those are more granular assets, things that we're not seeing in the facilities.

And as you move to the bottom right, the green, you can filter them by priority. So highest on the upper left, medium stuff, yellow in the middle. And then green, it's more aesthetic and less risk of only using.

Yeah. So I guess my my biggest question is, I know that a lot of the assets are being replaced as they as they need myself and assets. Right? Washington Center having an HVAC, for example, But I'm I'm curious about how much of it is in tracking the grants, their funding grants upgrades, something becomes available that may be further down the list, but it's just perfect opportunity. Does that help?

You have to rearrange the deck a lot. We've been good. Cool. Do you so mostly state grants, you know, sending isn't the current situation. I don't know.

The last couple were Yeah. The worst. Yeah. PSE also has I've a slide here. I'm all over it. They have.

Something. Everyone I'm admiring this slide.

This initial question conversation we had about is there an energy cost savings to be had, or is it more expensive? In my experience, it can screen other folks who function sometimes as an energy services contractor and sort of take control of this piece of the facility maintenance in exchange for taking the difference in energy savings. Right? And in that sort of a model, they wouldn't be looking at how to switch a light furnace or hot water system for natural gas to electric, but they'd be wondering if window coverings, bare ceiling of a building, window replacement I allow them to use a less energy consuming heating appliance. And so, I mean, that's the only way that heat pumps make any sense is if you have a more efficient building.

It's the same making building isn't isn't gonna save you money by sorts of heat. So I'm wondering how do we I mean, both wanna respect it. You have specific appliances that get to the end of life, and you you gotta do something with that fixed. But there's also window coverings, big just ventilation fans. There's sort of passive passive attempts, and there's also air sealing.

And there's but there's other approaches to reduce the amount of calories of of heat energy that that need to be pumped into a building. Is is that something that the history is helping us with? And I I realized this is, like, way down the weeds. Can you just briefly speak to how do we actually decarbonize and reduce the energy consumption of these buildings through this process rather than just solution for natural gas? I I I'm just gonna offer the most radical proposal I saw along these lines was the armory in Ontario, Oregon.

And so there's another similar energy services stock that could redo it. And part of the plan was that the admin staff needed to wear a thick sweater in the rear time and needed to sleep less in the summertime. And it wasn't popular, but it was considerable in two cities.

Well, I mean,

I mean, to some extent, when

you build an energy efficient building, a city hall, We focused on an. Right? And windows aren't necessarily as resilient in controlling temperature as a wall and such. Right. So we make a decision to do that. We didn't have to have a conversation with staff that said, hey. We're really gonna have lots of natural light. The reality is it's gonna be difficult to maintain and assist the temperature across the globe for everybody. So we did, like I said, you may you know, some of you and everybody has different tolerances to temperature. So some people may need a sweater during the day.

Others won't. Right? And some people may want a space heater. And then if you do that, they have specifications for what you do with a space heater and what you cannot do with a space heater. So that is part of some of the planning we have to do even in the most energy. Some things like light are trade offs for other things. I don't know if you had you wanna add to that. But

and and the carrier taking and and where we put these limited investments going right now.

And can I just say one more thing? I think it's probably set out to you, like, if they create I saw this information the first time. There's a significant delta in electrification. Right? 5,400,000 to do that. Mhmm. And and I don't have to tell you how to report that. And we all say, oh, let's let's just find that tomorrow. I'll start doing this work.

How

do we start to get there?

How much so do you feel like that's a little bit of a moving target when you think about buildings like the library or the maintenance center or, like, somewhere in there, there's gonna be these places where it's like, okay. This whole thing comes off that list because we're not gonna make an investment entirely building. It could be electrified and more efficient and all of the things. Yeah.

Certainly. I mean, we, you know, if we got to a place of making decisions over voters to some some. And, certainly, all those things that are there come off that list because we take care of a lot of them with the. Same thing if we move the library out somewhere else, and that really. Yeah. You're a 100%. What Eli is saying is the world stays as it is today. Our downside. Right? But that that doesn't it's hard for them to make assumptions. I agree. I understand. I'm probably gonna make some decisions.

Also have a we're we're banking on that. That center part of

the great full charge that

we were looking at for the electricity, essentially, is the assumption for all of our climate work has been that PSC will decommission the coal and the natural gas feeder plants, and and they'll be all on the way we produce electricity,

and then that will transfer

to our benefit in how we do our accounting of our our climate impacts. And that that is also a little bit

more volatile right now. Yeah.

Federal administration's been trying to remove those requirements from them.

So Yeah. No. That's that's something else that we're

banking on. We have very little control over whether is very cold.

I guess, one last thought, and this is, I guess, kind of side note about about location too. Right? We're talking about where buildings are. It's also very important. There's a famous example. EPA headquarter office was in Kansas City. And then in the early months, they moved it outside of Kansas City to a beautiful e building. They found that the amount of carbon pollution went on because everyone had to drive to the building, even if it's more efficient. And so, like, we're talking about the library and other things. It's always important for it to be essential as as possible for people because there's that effect.

You know, it it's nice for us to meet our needs, but it's also a negative impact. Everyone has to try to weigh out the rating.

Mike, thank you. Thank your team for the work, both the analysis and the. Yeah. It's really helpful.

Mark, are you getting? Oh, hi, mate. Hi, Steve. Yeah.

So

with me here at the table is Tom Jeffers, our deputy from the. And Jaime.

Well, good afternoon. Thank you for the opportunity to be here to share with you our findings. My name like Mark mentioned, my name is John Jeffers, deputy director of. And with me is Heidi Makashi, leading operations supervisor. And we're here to talk about free electrification and EV charging, what it means for the city of Olympia, and how we're approaching it in a practical and thoughtful way.

This work is about our community, reducing emissions, improving air quality, and making smart long term investment in how we operate as the city. It's about balancing environmental responsibility with fiscal stewardship and ensuring that any transition we make is reliable, cost effective, and aligned with our operational needs. Next slide, please. Today, we're gonna walk you through a few key things. First, we introduce our project team and talk about the purpose behind this work.

Then we'll give you a clear overview of where our lithium is today with heat electrification. From there, we'll share what we found around public charging, and we see the best opportunities moving forward. We also cut on funding opportunities, and that can help make the transition more achievable. And through all of this, we'll show you how we're approaching electrification in a practical way, how we identify the right vehicles, planning smart charging strategies, and taking steps that we could bring measurable benefits of acidity, both now and into the future. Next slide.

And the next one. And first, I'd like to apologize to a few folks on the project community's family. I both get that fixed. And I'll start with the purpose of this project. We'll focus on giving the city clear practical guidance on how to move forward with electrifying our our fleet.

Isn't about sort of vehicles. It's about doing it in a way that's support Olympiast long term sustainability goals and meaningful, and this is our operational carbon footprint. So the journey began in 2024 with the development of a request for qualifications. Qualifications. We then moved to a selection process, which is our consultant, followed by an in-depth evaluation phase, which ultimately resulted in the final report.

This has been a collaborative effort being partnered with DKS Associates led by Gubair Antal, Mike Ussom, and Danti, who brings strong experience in electrification and strategy. On the city side, this work has been supported by our team, myself, Jaime, Eli, with additional support from doctor Graf. She has been tremendous support during this project. Next slide. And on the next one.

So I want to briefly highlight why electrifying the city of one of your fleet is such an important step. First is reduces emission. Switching from gas to electric vehicles reduces c o two and other greenhouse gases. That help us reach our goal of cutting community wide emission by 45% by 2030 and getting to net zero for city operation by 2040. One thing that I'm really proud of this guy is he transitioning our all of our heavy duty vehicles from traditional diesel to renewable renewable diesel.

And by doing this, we have made meaningful progress. In 2025, we were able to reduce greenhouse gas emissions from the city fleet, excluding excluding fire, by about 49% compared to our 2019 baseline, which it was about 2,200 metric tons. Yes. Second is improved air quality. Third, it aligned with renewable and clean energy initiatives.

Finally, it modernizes the fleet. This aligns with our Olympian twenty forty five plan, support regulations, and show that Citi is taking a leadership role in sustainability. In short, electrifying the fleet is a simple, magical way to reduce emission if it would help and.

Renewable diesel is an interim. You help me understand? The renewable

diesel is is just produced in a different way, and it's just used mostly waste products. Different manufacturers produce it different ways, but the general consensus is this used bottles used out of that used waste is supposed to be used to produce this. Let's say, reduces carbon emissions by about 75% for non food manufacturing. They tried to they they say 75%, but they probably 25% for the carbon technology and all all of those things kinda break back.

Is that something that we need to maintain our own, like, infrastructure or, know, trucks? Right.

They are they are able to drop in a few. So we just create another thing. Business. Our new island, but it is a drop in deal. We didn't have to change anything. Benefits of the reduction in emissions. Great. Great. Zero infrastructure. So.

And I'd like to add an operator if they need to go to. I don't know how true that is, but they they need to take care with us that we will.

Okay. And looks like we

moved to the next slide. K. So now I'm gonna make it over and show you what we have here.

I have myself here in the the operations. So just real quickly, I have go over the fleet composition. So we have about 340 pieces of equipment spread out to 17 facilities. Out of that, 238 were identified as suitable for electrification. From that, we already have 35 electric vehicles, mostly light duty and one sort of medium duty electric vehicle.

The majority of our fleet,

as you can see, is light duty vehicles, which is a f one fifty and below, so f one fifty pickup trucks, sedans, and SUVs. For our fleet utilization or pricing practices, currently, our policy is. That is based on, like, availability of vehicles, funds, all kinds of things. We do have a separate thing, lots of ownership. The ED versus a carbon black antigen falls within that 10%.

And then for the traditional one with that, then we go to the meeting even though overall cost is within that. If it's more than that, then, doing it, not doing it. Carbon mitigation. We do a carbon mitigation for exemption. So all exemptions here for for exemptions vehicles that are that we can say not to be in zero emission.

With that, the the funds are have to understand that they would be paying a medication So it varies from 842. Those funds would be used for charging infrastructure. Pretty low right now. So that's gonna play a part down the road and we'll go to add more infrastructure. Okay.

Funds those funds would be available for that. And our average lifespan for our. Also, policies, currently, there's a lot of factors that go into that, whether it's mileage, fuel cost, parts, labor, or the year. So we have have have to wait those every year. As far as cost per month.

Some of the recommendations from our consultant were to align the replacement for our utilization. So with that, it would be low use vehicles to consider consolidating or or the. Then the life of low mounted vehicles, same flexible with easy supply and pricing on the. And brought in OE brands brought in iPS being and the last. Is there the more there the more human error rate happen as the plug in only benefits if the battery is charged.

So for whatever reason they don't charge, it's gonna run off of yeah. Then conventional hybrid would be better choice. Yeah. Plug in hybrid. Manufacturers also is a brand.

So those manufacturers, does help with getting there sooner, but overall cost may vary. It's always best practice for us. We standardize our food. That keeps our I just wanted to highlight something Jaime talked about. Let me go back a slide.

The the carbon mitigation fee funds. Right? And this is a this is a very deliberate change that we made to our policy right now, right, as we consider vehicles. So so if I need to get a new vehicle and I don't feel like I can like to buy for whatever reason, I gotta go to the fleet review community, and they're gonna look at it. They're gonna tell them whether they agree or not. Right? They disagree with me, but I'm getting. If they agree with me, it it may be the technology isn't where it needs to be. It could be a cost item. It could be a number of things. Maybe it's not mass produced, so we'd have to order one. It could be five years to get it. Right? And that doesn't work for our operation. Whatever the reason is.

But if we stay if I stay with a non EV, then I am also then having to pay a mitigation fee into the fund so that we start building capacity to build infrastructure. So if we continue to expand our electric, we have money set aside to build infrastructure that pays to maintain it. So I just wanna really it's an innovative way to do things. I I just wanna highlight this because this is really great work by this team to say, okay. If if we have to stay status quo, we have to do something to start setting money aside to invest this.

Sure. So that's the way they have come up with this. It's taken an adjustment for all the departments because, obviously, this hits your budget if and you're having to account for it if if you're getting hit with that fee, whether you're general fund or utility, you're having to address it. So I just wanna highlight it because you did a good job of talking about it, but I really wanna praise it as a really innovative way that this team has gotten at this and really worked really well with all the departments to educate everyone about what this is and what it means to our.

I mean, this also got a question.

We have as we think about the different types of manufacturers and all that, do you have staff mechanics, or do we contract out for maintenance? Or No. The other maintenance, I I

So with with that, we would be putting money into or investing into their training for their equipment. Think we can broaden our factors, and we also look at the expansion of our diagnostic software, especially for So So that's just for specified. So not the entire, you know, what they have for them. But we didn't pick up the works. Yeah.

We're gonna just have a

little conversation. We'll get back to your your slides. Ahead.

So I I have a couple questions. So related to this, so I'm aware if you buy an EV as an individual, there's tax incentives and all of that. As you're buying I'm assuming every services, other things, contracting. I'm curious. Is there is the state, like, fleet pricing is lower?

They their price, the the cooperatives thing. Okay. Generally, we are we use different cooperatives, so we are gonna be in contact. They already get the lowest price. I think where your where your question kind of wouldn't help.

Answer your question is that in the previous years, if we purchased a vehicle or the registered owner for that year, the following tax season, we would be able to buy for every person or a refund for the incentive of that. If we lease the people, we do not get that incentive. That attach process, and we can just Yes. I figured I I would ask. Because it's one big and set as that.

And I guess my other question is, you know, I I thought about this because of energy transit. We're trying to more secure hydrogen at the resource in the area. It's a big conversation. I thought about the idea of using the leads from lot of hydrogen and other things. Right? And I and I I bring this up because usually hydrogen is seen as something for larger than that EDs struggle with. Right? Your with bigger construction or even our heaviest duty vehicles. Is there any conversations in your world around this? Okay.

So we've looked at hydrogen as natural gas. A lot of it is we don't have some of the compressed natural gas are dedicated areas. The other thing is not. And it's, again, they're not as common in vehicle. So in this heavy duty vehicle, it's a lot less or a lot more than.

And, like, any any heavy duty vehicle, you're going you have to match up two different manufacturers. One manufacturer chassis. So the internal tab, the wheels, the frame, and then the body gets manufactured by some gas. So we don't always have the same manufacturer support there. Equipment.

So for example, our ASLs, our automated cellular refuse trucks, our out of our bodies and have a GNH I'm sorry. A auto cars chassis. GNH is the one. So but our front nodes are different. They are currently capable chassis and a high.

A lot of that varies. So we would have to make sure that they match up

That's that's where it is a little bit harder for us to match up, see, and, again, do ourselves.

That But the biggest our biggest constraint is infrastructure and space to have all of that. Everything can be the same with maintenance facility that you see transit and then we upgraded, all the building stuff. Mentioned training earlier,

They exempt from this conversation? They're not they're

not exempt from this. They're just not fully there yet. We do eventually want to move to that. We did we do have currently a few hybrids, however, over the past life cycle of those hybrids, they had more. My things due to the nature of the operation, where I needed to get somewhere quickly, stopping, going.

So there was a lot of issues transitioning from the heat from the electric to the thermal combustion engine and and a lot of electrical issues software. So for a regular administrative part, perfectly fine. Emergency services. So we try try to keep those on the road as much as possible.

Are there any smaller efficiency measures like a policy on idling or or the engines have automatically cut out the red light. Yeah. I mean, are are those kinds of incremental improvements to make in the?

Just out of So the

show me

was really cool. Mustangs.

The EVs are are very nice. So, yes, the the problem with them currently is the amount of capacity that those vehicles have to have on radio, radar, all of that. The way it and and the the that's there, that's that's the biggest issue. We would love to do that. Yeah.

Yeah. Rightsizing recommendations. So our consultant looked at some of our equipment, and we also are looking at retention. Right? So the most critical, mission critical equipment, trucks, power trucks, emergency vehicles, those are kind of the ones that we wanna obtain.

We don't it wouldn't necessarily be moving to the right away or just not an MLB. So, again, it's it's technology changes that we we need to. You need and specialized equipment, again, also is something that we retain contain even though they have full miles. And then some stuff to consider for removal or consolidation, as I mentioned earlier, transitioning some departments that have similar vehicles that can reduce and potentially use cool cars versus having a dedicated vehicle in their department. So consolidating some of those to reduce that and anything that's kind of low miles that currently used in being able to do that with.

Recommendations, so out of 340, retention is about 326 instead of putting it out of the 14 vehicles. They recommended and saw for utilization. Some of those are. So they wouldn't necessarily consider them to be decommissioned or reduced. The ones that we do have, we have we are looking at the emissions from those to consolidate those low really low usage or convert them to something So so that's that vehicle.

Some other vehicles there. The van for probation is an example where we had just purchased it. It was. When probation went away with court, we looked across our food to see if it could be used in the department. How was response?

A old band that was already past its life cycle and then it given to them. So we were able to replace that plan Yes. Transfer that vehicle to them versus personal. Market rating, electric vehicles. So in this, breaks down into categories like medium duty, duty, light duty being the trucks and below, medium duty being trucks like f two fifties, obviously, f five fifties.

The heavy duty being more of our five yard gun trucks, refuse trucks, four lock trucks, that's for fire apparatuses, and off road equipment, building forklifts, backrooms, backrooms, So these costs are are kind of an average what's out there currently. Some of these, like I said, in the light duty, it's a lot easier to transition those light duty vehicles. They are very comparable. The cost difference between an electric vehicle and a ICE vehicle is pretty comparable, and the total cost of ownership is usually more leads more towards EVs. So if you want to make it when we start going into the medium duty and heavy duty, there are options, but they are limited currently.

And some of those factors are that are limiting us are either for batteries, payload, or the type of equipment it is. So truck platform trucks platform trucks, we currently have one media beauty truck that we purchased this year. It is a waste research vehicle. It's a car delivery. So they go out.

They deliver the residential parts. So that's that was a huge plus for us. It was one of the only trucks that we were able to do, but we we gave it a shot, and it's been working pretty well. The downside to those types of vehicles is the one. So being a platform truck is fine.

It's it's like has, like, fourteen, sixteen foot body. So it makes it good for them to deliver parts. Doesn't work as well for adding a service. We got a service body to it. The way it's way too long, so we have a lot of that space in the back that's not even being able to cost or sometimes twice as much as a conventional vehicle.

And the car analysis and cost comparisons may may be double the total possible. Again, as technology increases, batteries get smaller, that's been a bit important for you to use them in more departments. Any questions on this side? Recommended charging infrastructure. So our consultant looked at our vehicles, our facilities, and gave us a estimated charging infrastructure that we would need.

Overall, we would need 63 chargers. With those 63 chargers, the majority of them being level two, so 34 of them is what's recommended. We currently have seven. Well, they're they are just level two chargers, and this will similar to the one that I've seen. But does not include the level one chargers.

They recommend 11 DC slow chargers, which is basically a level two with a little bit more capacity to to charge the per kilowatt. Right? So and then we move on to the DC fast charging. There's a 50 kilowatt and a 150 kilowatt. And just to kind of give you an example of the differences is the 50 kilowatt will charge your vehicle from 20% to 80% in about an hour.

Yeah. 150 kilowatt would charge a vehicle from 20% to 80% in about twenty minutes. So but then but then is your vehicle has to have a capacity to receive that in. It doesn't it's still only charged with the capacity. Gonna change the battery to the home.

So those are the recommendations. With that, it's gonna be about $7,500,000 to install infrastructure. That's chargers, materials. And $1. Can you guys talk little bit about I see the new for 63, and I think about the payment center space constraints you already have there. That all I'm assuming that also plays into this. It's not just money. It's where where we put them all. Right. So part of part of that is is that if we use if we got the electric, They have to have.

And they would have to be low. And the time that it's gonna take, even though it'll charge a sedan, won't charge that. Does create little bit of infrastructure designed that has to do with that. That if we got there today. And the $7,500,000, that's money today.

So as as the as we move along with it, the cost may for down. We've seen the.

And then I wanna add that most of our facility do not have a do not have enough electrical source

that's

something that I I also had a part of interested in transit conversations, and he was a consultant set in with PSC. And I think it's a it's a time we sort of pivot that those costs to purchase the vehicles are considerable, but they're nothing compared to the fuel cost or the energy cost over the lifetime of the vehicle. And so if we imagine ourselves that these are appliances like laptops and phones, and you just you go through them. What you're really doing is paying monthly for the the use. But I I I think this bigger question for me is to negotiate with PSC about becoming a much larger customer, And then their capacity and their willingness to create I mean, we had all the large institutions just in Burstin County electrified.

It would be a dramatic change in in the electricity demand for the county. Mhmm. And so I just just for me, that's the way I think about it is that if we switch all of the fuel contracts we've had on electricity, and we can't just pay the retail rate for that crisis. Yeah. I'm intrigued with that. Yes. That is some of the things that

we look at is that there are some cost savings in switching to electricity, but that means that, yes, our fuel cost will go down, but our, like, cost will go up. And some of that transition is transition to yes. We look at the cost savings on the fuel side, but the electricity, we're shipping that cost into the data. Alright. All those factors.

Do you expand the ricket train program?

It holds the fire truck. Holds the. I

just have a power.

Like Place my schedule. So with the recommendations, we would be looking at identifying the years acquisition targets currently with our current plan. We have them planned out our transition to the PD coincide with our life cycle. Do defer sometimes based on availability, maintenance cost, or vehicles exceeding what the department had available. So that's also a factor.

So it's not the the vehicle isn't available, but it might be that the funds are not available. So that we we try to factor that in and see how we can make up those differences. Brings finance into into the mix and Brainpower. Yeah. Material cost will increase the c m.

They increase again as well. So yes. So that when we talk about for replacement cycles, they defer anything. We run into that with any possible more of next year. So we're trying to at its life cycle, which is what we have projected.

We'll try to keep it there. Extending that life cycle has benefits, but it also has downsides and maintenance costs increasing availability of parts and issue. So that creates more. So there's multiple factors that go along with that, and we do our analysis of that. And.

Also, in existing and system aided regulations, some of them change quite often. The clean fuel standard,

the electrification

of vehicles, the demand that they put on manufacturers, develop more EV versus aero question engine, those play a big factor in our replacement just because they they may vary year to year. So availability of any specific type of maybe marker as we move along our replacements. And then as I mentioned before, the EV market availability, EVs available in the market currently. They're making big strides in increasing the battery capacities in a lot of different types of vehicles and having a a broader range of vehicles. So I look forward to seeing when that comes out, but that also changes pricing.

And now we talk about money. The right foundation is a phased approach to electrification. It granted in what we have actually seen in our. So the phase one would run from 2028 to 2030. On paper, that looks very aggressive.

Looks like we have 41 vehicle transition. But based on our historical transition rate, we wanna be realistic about it. And typically, we have been transitioned about five to eight by two medium duty vehicles per year. So in 2025, we exceeded that, and we transitioned 10 vehicles to EVs, which is a great sign. And looking ahead, we anticipate about five to seven vehicles in '26 to '27.

So with that, when we carry that trend forward, we estimate about 24 vehicles will realistically be transitioned during phase one starting in 2028. And we think that that's achievable, especially with technology contained to improve, and hopefully, that's something an incentive begin to return. That's a measured data driven approach carries into phase two and three. And by the time we've reached phase three, the focus shifts to heavy duty and emergency response vehicles, areas where the technology is still evolving, but moving in the right direction. So the cost of transition, 220 vehicles to EV is about $26,000,000 money today by you.

63 charger, as Jaime mentioned before, is about 7 and a half million.

Thank you, Tom. Yes. Do do you have an idea of how much why is

don't how much more expensive this is in doing engine

$8,600,000. As you can see, we put the debt there. But we're looking at twenty twenty forty five. Right? So it's a long a little bit long way from here from now.

A front load is about $500,000. The EV version of that is an exact drug. It's $1,000,000. Over the life of the total cost of ownership for the ICE vehicle is about $800,000. For the EV, it's about 1,300,000. So even though EV gets better than the that 10% period that we try to use for replacement, but it's not there. And that's

And that's what you were saying earlier that sedans, SUVs, and, like, trucks are already mass produced, so

we can get that within 10%. And they're an

easy decision. That's a more difficult decision because that cost more than half $1,000,000. Right.

And we're looking at the total cost. So we have that life cycle of that. So for public charging, we also have consultant look at some public charging. We we narrowed it down to about 13 locations, some of them being parks, parking lots, sitting on parking lots, and the Timberland regional library. With that, we would be looking at installing 29 charge stations with 49 plus.

And, again, that was oh, it's okay. Oh. I don't if you're done better at first.

If I get this, it's just in case again. Yes.

So with the chargers that that is level one or I'm sorry. Level two single ports, dual ports, and some PC charging. And some of the areas that we looked at specifically for ports is some areas that are closer to multifamily residences where they may not have the capacity to install a charger at their housing area. So having a charger that's accessible in the park would help make the transition for them to the the year so they know they nearby. It was the parking lot.

They're a stay home where, essentially, doesn't go shopping and charge their car while they're down down. I I just have two thoughts. Medium thoughts. Something. It's it's not that copper problem? I just I just it happens all over. Like, it's just an app on set signal. It's camera. They're hiding everywhere else. Happens anywhere else.

If you ever have to take any. Yeah. To even the the big wires as dangerous as that is. Do we have any thoughts about, like, deterring that? Like, that's typically, that means that what is in that area.

Lighting helps. Mhmm. But it helps a little bit to deter In shared cost or charging infrastructure does I think it's a little bit more of a facility switching, but it's in my experience that our facilities were to maintain those chargers.

Cost of the

chargers, probably the actual hardware, charger, or cable is a lot lower than the installation. Yeah. Like, charger, power station, console for 5 to $3,000. Okay. I agree because national but the national standards are changing, I said.

So that is a. You just because it's too heavy. You're logging yourself. It's not the. So here, it's like again, it's and you can have someone who's looking for a bunch of copper. It's right there. Right? I mean, risky, but it happens all the time. And, you know, and I think my other my other concern is is the replacement schedule. Right. Right. I've seen the chargers even have them out. By the use on fifth, there was some PSC chargers that got sold six months ago, and then where they cut the wires. Have. Sometimes they take a long time.

Availability.

So now we're gonna talk about funding opportunities. So we want to quickly highlight the funding and incentives available to support our fleet electrification efforts. First, the city has already been successful in securing some grants. Through the Volkswagen settlement program, we received funding that will reimburse up to 75% of vehicle replacement to replace

We with the funding, some of our our vehicles aren't old enough. This particular vehicle happened with the right at the right at the end. So we we did apply for a grant with department of. We we were awarded the grant. We're actually waiting on the grant.

Okay? We can I know it's a for approval? But, yes, so that vehicle is about $400,000 for electric vehicle. 470. The grant would pay up to 75% of that and the charging the charging station.

So if we can't order the vehicle until we sign the agreement. So we're we're just going to that agreement. But that is one of our medium to heavy vehicles that are feasible or So

it's not a matching claim. And we're gonna get reimbursed about $360 a month. So it's pretty good. Pretty pretty cool. We also receive funding for EV charging through the Charge Where You Are program, which helps cover up to about 80% of level two in charge of cost.

At the state level, Washington still offers a self tax exemption for electric vehicles, which applies to the first $20,000 of the vehicle cost. That said, for government governmental fleets, the impact is somewhat limited since we already have certain kinds of entities. There are also other funding sources out there, like the federal and state programs for infrastructure and green vehicles, but those tend to be very competitive and not guaranteed. Other opportunities for us is to reduce energy. Their up and go electric program provides significant incentives for both fleet and public charging.

In some cases, they can cover a large portion or even after a 100% of the installation cost, especially for project that serve the public or underserved communities. Overall, there is funding available. It's just not enough to cover for everything we need. So we need to be very strategic layering grants, utility incentives, and city funding to move this forward. Next slide, please.

Well, we're at the end. And in closing, this is basic base step, but also a meaningful one. Work out the clear path forward that's grounded in policy backed by data and supported by strong partners. As we move ahead, we're focused on keeping things practical, cost effective, and aligned with some priorities. When we look at the bigger picture, this is really about taking care of our community, reducing emissions, improving air quality, and doing our part to move forward, being responsible and thoughtful work. Again, thank you for giving us the opportunity to be here.

Any other last questions? Appreciation. Yes. Thank you for taking this on

and and having been a steward of our fleet regardless of the fuel tax. I appreciate that pretty much. Yeah.

Well, I appreciate it. I think it's very excited about when he's able to convert something, and we have the Mustangs. We're on a kind of a world tour. Taking me included taking people for rides, and they should launch it, but we're in the corner. So I would not just to buy That is last minute business.

Do you want reports updates in the energy burn meeting? We have one that we thought we could update you on tonight. You won't take a lot of time tonight. It's kinda like I talked about this today. So as you know, last time we were here, I talked to you about things that I track.

So since we've had that conversation, the financing is continuing to work about what are our outward facing support they can use to kinda track our progress. Now some of it will take some training and some navigation that we're working on. We thought we'd show you what that looks like because Mike is gonna and I are gonna bring this. We want the financing agency first and the new tracking tool. So with that, as an intro, I'll turn it over to Mike.

Yeah. Thank you. We're really excited about this. This and I'm proud of the team. They work very hard on developing this. This is the monthly financial report in a more interactive way for you, us, and the public to have access to this. So we'll get it posted on the website. I have the opportunity today to even show it off to a couple of citizens who follow our financial activity closely. They were pleased with it. During the budget development process, both Joe and I, and I'm sure Jay, probably some of you were approached, could lamenting the fact that citizens used to have this tool through a product called OpenGov.

We transitioned to new finances, and it was able to do that. This was developed by the finance team using Microsoft Power BI. So, you know, it's great savings and costs, and I think I'm just so proud of being in it. Something we're really excited about. I'm gonna give you a brief overview this evening.

So as David said, do you see ahead of council? But next week, at regular council meeting, we will roll it out for you, all council, all the way to see. So this really has a great feature where you land here on the summary page. We welcome you to it. It has some features where you can go into notes. So if Sean kind of changes the view on this, you'll see that we're explaining some of the things here. For those that wanna dive a bit deeper into this, you know, what do we mean by green?

What do we mean by yellow? What are we tracking here?

It's that kind of overall view of the operating budget, but you can get some information from that. It's pretty flexible for us to add some things. So if as folks are digging into this, we maybe think we haven't clarified it quite the right way, we can certainly consider that. But it needs explanation sometimes because if you just look at our revenue flow, like, now, it might not look all that great. That $17,000,000 of our revenue comes from property tax.

Well, we know that after that hasn't been received as of March. And I should mention, this is our financial report as of March. So it's kinda nice to have the rollers out. We're quarter over year through the fiscal, so it's a nice measure. But we can add notes on that.

The next cap over is what we call the watch list, and these are items that we specifically target and go over in the past. Really just with Jay, we're going to be presenting this out not only to you but to the executive team. Everyone really has their eyes on this more among the financial report. But these are the items we're tracking specifically, and we say the city manager will ask us, but we're all watching this time carefully because they're those areas that we know are some cramped point. So over time for our public safety, police and fire.

The really looking at some of our court costs, the basic life support for that, the jail costs, those items that we know we put some emphasis on in the budget development. We know that if something's not tracking right, these are areas that, in particular, we wanna maintain communication, Jay and I and the finance team. And then with you, do we need to make some changes once that so kind of have that revenue needs, but then the watch list. Then we highlighted at the bottom some of the bigger funds. So the the general fund is the first cabinets there, and it really I like this.

I think community members who wanna dig in are really gonna love it. You can highlight so if if Sean shows you up in the revenue piece and in taxes, you can drill into this more and see where we're at as of March with the different types of capsules. And so, granted, not everyone's gonna wanna go into this detail, but we wanna avail to those who do. This is about being open and transparent. So, again, I'm just really pleased with the team because they did a great job in delivering on this.

You know, you can drill into more sales tax. Maybe, Sean, you can show them. And and this is where we're gonna create a video It's going to populate and post it on our website how to do this, but he can show you by month kind of where it's at out there. So if you just maybe wanted to see, let's say, at February, where was it? Where was it trending?

Show the folks how to click on that and also see this. So we won't produce a static 70 plus page PDF document financial report anymore. It'll be this. You can still see months. We'll add two of each month to be able to allow all of us to look at it, but I think it's going to be pretty darn popular with everyone. Maybe we can show also up at the top, you can or pardon me. The button that shows other funds, and then up at the top, you'll be able to choose them. Any fund that you might want to look at that the city of Olympia have.

So Take a private leap up.

Leap anything out. We've highlighted at the bottom, maybe the ones that are more we think of the most general fund, the development fund, and some of that. But this is what we'll be rolling out formally in council. We're gonna make it available as we have customarily after the finance community meeting. So, yeah, the the stores, you know, soft opening. We're gonna do a soft rollout of the finance report. But, again, a lot of work went into this. It's something that our community really wanted, and we've delivered on it. Now will there be some requests for things that it doesn't do? Probably.

We'll keep working on it. Power BI, it it it's not. And so we'll we'll continue the development.

But that's

just a quick Okay. And

I'll point out, Sean, like, if you go back to the summary page, you know, some of it and Mike and I talked, we're gonna have to put some videos together and some things to explain to our degree how to use this because you might look at expenses and go, oh, you're in the red, so you got a problem. The reality is, and you know this, some of our expenses are front loaded. We pay our our liability insurance from some upfront for the year. Right? It's not paid out over twelve months.

So we have some bigger expenses like this in the first quarter of year. So what we'll probably see as the year goes on is you'll see those things out a bit, but it will be you know, if if you truly think of things as green, yellow, red, you see red, like, oh, sit down right now. So we'll need to make sure that we're we have a good explanation that goes with all this, which is where the notes are gonna come in handy.

And the other thing too

is what I hope it does for the counsel themselves is is now you're seeing the things that we are seeing and we're tracking real time. So as we get into our one on ones and you move through the year and if you're looking at this, you have questions. Right? And allows you to ask those questions out of us. So I'm really excited about this. When you think about this, the folks we've also done with PDV, that rolling out, the level of transparency that we're putting out in the community in terms of the information we have for our performance is really starting to ramp up and improve. And that's just a lot of gratitude really right here for this team. It was a lot of work.

I I wanna thank the budget team that I've shown. All of them worked really hard on this at a time. They're developing budget document, getting all of that together. So it was a great

product. So thank you all for your hard work contact.

The other update I have, something that's not as recognized as maybe the budget, but ever as much important, is the annual comprehensive financial report, which I just wanna tell you is nearing completion. That again, a lot of finance staff contribute to it. The development of it is led by finance manager, She they're finalizing the numbers this week. They're gonna turn it over to the final analysis on medical management, description of things. We have been contacted by the state auditor's office that kicks off that process.

Also, we have a preconference with the next, really planning conference next week to talk about what they're going to look at. People out of federal civil life. We have grant money that constitute that, and then they'll do the financial audit, which is of this whole report that we're preparing to make sure is what the city is reporting to it. Right? So that'll come we'll invite you. At

least

the chairman, all of you are welcome to the preconference, entrance conference. Sorry. That's ongoing. All the other things that that happens, we'll be talking more about it.

And and as as the conversation goes on,

I mean, Kaffer is often right? It's the The former term.

Not. Yeah. It used

to be called comprehensive annuals.

Is that Kaffer? Yeah.

Yeah. Kaffer ACTFR was is. The one.

No. Annual

comprehensive. It

is. In some language. Okay. Sorry.

But

so it's called ACTFR. Alright. Thank you. This is it's it's I mean, it's both like, Jay's watch list are the primary questions I've had along with I saw Sean with the.

Those the those

are the things that that that will answer questions for me if I'm long way. Yeah. But I I also think in a moment when trust in government is being tested even more, that our going out of our way, being transparent and say it was really honestly not playing any kind of games. And just to clarify, on the entrance and exit audit audit in in the interviews prior for each of each of those the entire council's invited. I I just happened to be the one who said, yeah.

I'd like to sit to that. But but and that might that might happen to be chair of the committee, but but it it is an invitation that will come to everybody on the council. And just as with your other regional planning council and city transit,

you're welcome to sit in as many

audit conferences. Well, anyways, it's it's a point of pride. Right? That our long record of not having is a is a real point of pride internally, and and maybe tools like this help to share a little bit and and build some confidence. It's not just us having ourselves in the back. It's you know, I I think those independent audits

do verify that

everything was as say it is, but it's that's not easily communicated even across staff. Exactly. Like, I don't even shout it out or not. Yeah. Yeah. So these both this and the priority based budgeting tool, I I think

you're gonna change the game. There's probably two. Yeah. And on on not just a priority based budgeting because Jenny has a communication strategy for that, but on this finance tool too, we'll have a communication strategy in the South launch in more volume. So as Mike said, we're kinda soft launching it between now and next Tuesday, and then we'll put some tools together for the community so that they can know how to use this this tool.

And just so you know, when April ends,

That's.

He would spend eight hours a month manually updating the the static word document. And so if if anything, you did it or more for it to come in that Word document, you don't have to create it. You have to update it every month. Now we export it from work there, branch system. I hit refresh. And now all that time that needs to be spent building it can be spent analyzing it and understanding it down more. So it really is, you know, using our tools and technologies to be able to improve our ability to do good work. I'm looking for Sean and Owen starting. There is

some videos. Yes. I understand. Too.

Yes.

I guess it for us.

Any reports you think are good or the order?

Anyway, thank you both for your good questions, and I I understand that, you know, attending every entrance of exit conference isn't necessarily something that we'll all do, but but I I just appreciate you engaging here and questions you're asking. I'm just excited as we go into this year's you know, we will be focusing more on the next year's budget starting with next month. And I I feel like we're in really good shape as a team, and with the tools we have, face whatever the numbers tell us. Thank you. Well, let me see

if this will tell me what time it is. No. We're getting on time. 06:54.

And 06:54 with no other business before us, we will adjourn until we meet again at

the same time next month.

Thank you, mister Darren. It's again