City Council - Regular Meeting

for being here. Today is our first budget hearing of the budget season. Um, I do want to make a quick announcement from our 2027, was it a 2027 amendment 27 with the rules? It was the FY27 FY27 budget hearing rules. Um, please be reminded to members to send any resolutions to our budget analyst, Miss um, Regala Mauricio by 12 PM to be presented. If it's if she gets it after 12:00 p.m., then it'll be moved to our next budget hearing session.

Um, starting out, we have Chief Pson with an overview of CIP finance uh, CIP from the finance division. Oh, sorry. Let's do roll call. Councilwoman Dr. Easter Thomas. Councilwoman Swing Washington present. Councilman Dr. Warren. Chair White present.

Good afternoon chief person.

Good afternoon. Uh thank you for having us. Uh I have with me Jasmine Joiner Marshall who is the manager in charge of CIP for the city of Memphis and she will be helping me as I go through this process to explain things correctly. Uh, with that, I want to thank you again. As I said, Walter Pson, CFO, City of Memphis. And I want to start by saying that uh, I want to remind you all of what the mayor talked about a few weeks ago when he spoke to this body about the budget. And he talked about four budget priorities. Those being thriving neighborhoods, public safety and blight being one, housing being another, workforce and youth development being a third, and culture as an economic driver. And the reason I reference those is because that forms the structure for how the city approached the CIP budget this year. with those priorities in mind. So again, there were many demands on fairly limited CIP dollars, but we wanted to make sure that we targeted these priorities as we approach this with that. The document that is on the screen is actually the operating budget, but I would ask and I believe each of you should have this document which is entitled city of Memphis CIP overview and that will be the document that we will cover during this process.

And I I don't know, you may not have it electronically. If you don't, we can just work with Okay. the paper copies. Okay. Well, page two gives you an overview from FY27 to FY 31 for the capital improvement plan. From that you can see all the money that is expected to be used to address capital improvement needs. Clearly over a billion dollars will be allocated over that period of time to tackle sorely needed improvements within the city's capital infrastructure. This will include not only new developments but improvement. It will include software development. It will include turnout suits for for our public safety personnel. It will include repairs and maintenance. So we are very active in that space. With that we'll go to a divisional breakdown. City engineering being the first element. We can see here we have pretty much all new projects. You can tell by the TBD numbers. Of course HSIP is highway safety improvement plan or project. This is an ongoing project. It is not new to the city, but what this represents is basically seed capital, if you will, for

supporting our federal developments in our highway safety program. We have allocated 150,000 for that. This year, percent for art program. Of course, this is part of our urban arts program. 400,000 is allocated in that space. I won't try to cover each and every one of these lines, but I'll target some of the major items as I go through. Another major area would be the traffic calming devices. This includes the speed humps that you see in and around many of our thorough affairs. The thing to remember about that, that is a very popular program in the city and I think there are over 800 people in Q to benefit from that program. We've allocated an additional million dollars for that. And traffic signal improvements, one being at Union and Lauderdale. There are a variety of intersections that have been viewed this year for that program, but this was one of the ones that was funded for this year. Any questions about engineering? Great. Neighborhood safety. Let me look that up for you and I'll tell you. John Zena, chief of development and infrastructure. Um about a year or so ago, um Councilman Spinosa introduced a resolution that was passed by the council asking the administration to include this uh item in the CIP beginning this year. It essentially is a match to a federal grant for um intersection improvements. The main one being at Lamar Kimble and Pendleton, which is a six-way intersection. Um, we received $13 million from the federal government to address that, but we also got part of that $13 million um

allows us to do demonstration projects at 15, excuse me, 15 other multi-way intersections that are similar in nature to that one. Um, and this three, this $3 million, 1 million per year over the next three years would be the match to that grant. Um and so that that is not only um helping us to secure that grant but also is in fulfillment of the council's resolution from last year.

Um put in the speed humps. Is there a program to make sure that the ones that they've installed that there's regular maintenance? cuz I noticed the one on airways in front of the depot. It has come up and there's one on Barksdale between South Parkway and Lamar that has come up. Is there a regular maintenance program to address that? How often we talking about engineering and director Manny isn't here. Well, I can't answer why why Director Valain is not here, but I will say that my understanding at least as CFO is that there is a maintenance program that's associated with that. Now, I will say this um as I was commuting yesterday to take my child somewhere. I did notice that there were some that were also up on Hollywood, but I think what I remember from discussions around that time frame is that some of these are removed as a result of the ice and snow event we had because when the tertiary roads were plowed, sometimes those were removed as part of that process. So, it may be that they just have not circled back around to address

engineering or the contractors who's responsible for that maintenance for those speeds. Engineering engineering point of a point of information. Madam chair um when the little small ones that aren't wide that are not the big bumps were put down. I recall our engineer telling us these are temporary and they will not last long term. So I think they'll have to be re-replaced in areas we need them unless we're going to put in that big sort of wide concrete one. I think that's the issue. I could be wrong, but I think that's correct based on my memory. Thank you, Madam Chair. Okay. Thank you. We'll make sure engineers are aware of those locations.

Councilwoman Logan, you're recognized. Um, director um is director Manny Bell here. He not here. I haven't seen him yet. No, ma'am. Is he anybody in engineering here? He knows what the he know he knows about, you know, the um the temporary ones and how we got to that point and he mentioned it, but it would be great if he could come back because it seems like we're using more of those now than we are the previous ones. And if they are not there is if they're not as sturdy, then we need to discuss doing something different

cuz I saw one of them that was half on and half off. Well, I was about to say, let's do this. This is what I'm thinking, you all. Um, and this isn't how we've scheduled it, but this is that's what this is what I'm thinking. Um, since Miss um, Mauricio is up here, maybe let's have an analyst to start collecting qu questions and things that come up and after each budget meeting, we'll send out those questions to have so that way we can stay on the budget issues. But I think this is great that discussing the budget issues, it helps us to develop questions that we may have for more insight for other projects. So let's add that to the list um as to and and you can go ahead and articulate the question or the concern so that and so you don't have to answer it now, but we would like a response

by the next budget hearing. Is that good everyone? Okay. So the question is we would like to know who's responsible for the maintenance of the um speed humps after they are installed. Who's responsible and how often do they check in on them? Okay. And I will definitely send you those exact locations that constituents have afforded concerns.

Councilwoman Logan, you're recognized. And I also would like to add um if you could share any that are baked into this budget if you if you could let us know if it's temporary or the permanent ones because the temporary ones are just supposed to be for those um immediate situations that require traffic calming, not for lasting uh speed hump. Correct. Okay. Thank you. Thank you, Chairwoman White. I had just an add to that question Cooper.

Thank you. And I did not see it and I did not see you mention it as well. But the new median with all the flowers and all the woody stuff, I didn't see that in here. Did I overlook that? I want to know what the maintenance and what it's looking like and how much the cost and the bodies we need to make sure that these are maintained. Okay. Okay. and let the um record reflect that Councilwoman Green has joined us, Councilwoman Logan, as well as Councilwoman Cooper Sutton, Councilwoman Dr. Michael call your whole name. Councilwoman just recognized.

Thank you, Chair. Um question. What fiscal year did we complete the traffic safety around the school's development? Was that just a a two fiscal year thing? Was it supposed to be continued? You know what I'm talking about, right? Yes. Okay. Um, good afternoon, Manny Benn with the Division of Engineering. Uh, so that program is actually still but um funded. So, it's under traffic safety development. That's the one where we decided at least the body um allocated some dollars per council district uh to cover any sort of improvements in and around schools within that council district.

Okay. So, how much does the 250,000 what is what all does that get us if it's divided per council district? It it it just it depends on uh what is that of 250? Yeah. Um so it's about 35,000 per council district. So that may include um some speed humps, some some enhanced uh crosswalks and things like that. Okay. So we're folded into that one. Yes. Do you all just make the decision or you wait to get recommendations or

So, uh, when initially incepted, it was council members that, uh, directed us specific schools. Uh, but what we saw over time, however, is there were so much requests that what we do is we actually get, um, schools from each of the council districts, present that to the council members as to what we think the recommendation should be. Okay. Thank you. I just didn't know if we were finished with it or if it rolled into something else. So, thank you. Thank you, chair.

Thank you. Um, and one of the questions that I have, and this probably will be a little bit of an overlap between city engineering as well as public works. I'm really interested in um, and I don't know if this is something that we may need to consider issuing bonds for, and I implore my council members, this is very important. If you go and speak to our constituents, people talk about crime and those things. But the thing that I actually hear about, people don't come to me and say, "What are you doing about crime?" I can tell you in the last month, no less than a hundred people have stopped me and asked me about what are we doing about our streets and potholes. And I just do not see in our budget in terms of CIP or in the future of what our real plan is for paving and potholes. And I understand that it's a stretch and to many it seems like a very minimal thing. It seems like, you know, it's a low priority, but I submit to you all that it is not because it has a fiscal impact on our constituents on a daily basis. So when we start talking about a thriving Memphis, we have to think about how the decisions we make impact them on a daily basis. People's cars are being torn up. People are having to go and get wheel alignments sooner than they should. people are having to replace tires um because of busted because of potholes. Um our streets are just not good. And that means that at some point we're going to have to say that this is a priority and I believe it should be because we can see the dollar impact immediately as it pertains to our constituents. And so at the next one, I would really like to see what it looks like to have a robust plan for paving and for potholes, whether that's going to be CIP, whether that's going to be we need to explore some type of bond issuance. But I think that needs to go right up under number one when we

say thriving neighborhoods. That's what comes to my mind is us making an intentional and robust effort around street paving and potholes. Vice Chair, I to to your point if y'all would skip ahead. Actually, I think the administration heard you uh loud and clear on that. If you go to the public works section, which unfortunately these pages aren't numbered, but several several pages back. There we go. Um you'll look at the very bottom of the page and the start of the next page. Asphalt paving neighborhood is an expense recovery line. Now, historically, we've always had that in the budget, the 6.5, that is the recovery that public works gets. But the administration has been very intentional. If you look at the next two lines, uh that line and then going into the next page, asphalt paving streets group one, $6,750,000 and streets group two also has $6,750,000. So that's $20 million alto together that is dedicated or 195 really. Well, no, 20 actually. I'm doing my math in my head. 20 million that is dedicated paving and in addition, if you look a little bit further down, asphalt plant rehabilitation. So, one of the goals there is the administration wants to start or at least expanding their efforts around asphalt production. Um, we're working to make sure that we have the appropriate air quality licenses to really expand asphalt production so we can produce it at a lower price point and pave more roads. So, I I think that's been heard. Um I I'll defer to the experts over here, but

No, that's fine. And and I'm right and I what I was about to say is I appreciate that. And what I'll do is I'll go back and compare the numbers here to what they were previously. And at some point, I would like to hear kind of what the plan is and how it's going to look different than what we've done and what it is that we should expect in the future. Yes, ma'am. And I didn't mean to interrupt your presentation. No, no, that's fine. No, I think that was a very relevant point. And I'm sorry, Councilwoman Walker.

Thank you, Madam Chair. And this question can be on the list for the followup, but what is the reasoning behind a pothole already has to be reported before a resident can file a claim to be reimbursed for damage to their vehicle? Well, thank you.

Uh, no, thank you, Councilwoman. I'm going step out on a limb here because I'm not an attorney and I'm not going to pretend to be one, but I believe that's part of state law. I think that is a state law that addresses that and that's my understanding from the risk management team that is required to be reported in accordance with state law and and there's a period of time to remedy that. I don't know what the period of days would be before it's then become something that can be compensated. Okay, thank you for that. So, as it relates to the list of questions, can we um get a copy of that? Okay. Thank you. I yield the floor. Thank you, Councilwoman Walker. You can proceed. Chief Person

before she Dr. Warren, you're recognized.

This is just really quick. I think y'all remember the success we had with MLG&W spending all that money and clearing all the trees and all of a sudden the power stayed on. I think this as our chairwoman says is a similar issue and how it's affecting the mental status of people in Memphis. I know when I drive I don't look, you know, at the lines. I'm looking at the holes in the road and I'm driving around them. I mean, I get pulled for drunk driving, I'm going to be okay because I'm not drunk driving. I'm just driving around potholes. And I think that, you know, that's that's a lot of people are doing that. So, we need to think about how we I mean, $20 million, maybe we need $40 million. Maybe we need $60 million. I mean, maybe we need something. I don't know what we do, but that is huge. And I agree with Chairwoman. Thank you.

Thank you, Councilwoman. um chairwoman swearing in Washington and then council want to make sure that we are aggressively um working on grants state federal however to qualify for this and also I see that we have a funding amount but we just want to make sure those projected locations that we are going to address the potholes in the streets so that we can spread the love around the city and make sure we're not concentrating that effort towards one area but making sure that we are being equitable with the dispersements. Thank you.

Thank you, chair. And this may have been said before I got here. Um, but I do want I do hope that this process as we enter into this process that we are able to align. I do know that there's no increase in taxes. So, all the budgets are flat and and I know y'all hear us at this point saying these things are extremely important or these things are really egregious uh violations against the community and so we're saying that and you're saying well the budget is flat. Where where do we meet in the middle in terms of making certain that those priorities and those things that are critical, those things that we hear from the constituents and we've shared all year, last year, all term, the first term, second term that are important? How were you a how did you approach them and bake them into the budget? Just as you showed us about the paving, there are a number of other things that we've talked about and I do know that we can't get everything that everybody wants, but what were the priorities? Because at the state of the city address, I heard housing was the priority. And I know housing is important to everyone, but there were some fundamental things, you know, basic things like potholes and paving and trees and blight and those things that make for a healthy community, a healthy neighborhood. So, how were those and I guess as you all present, you can, you know, let us know that from each division. How were those accounted for in the budget seeing as though it's flat? And I just off the top before we go down this long road, I would like to know that so I'll understand and can can listen to this with that understanding.

Yes, ma'am. And and and thank you for the question. Um, as I mentioned, and I was quoting directly from the mayor's u budget address from a couple of weeks ago, and you named them, um, thriving neighborhoods, housing, workforce, and youth development, and culture as economic driver. And just to be real and just level set this whole thing, we're kind of lapsing into some of the operating presentation, but there were some hard decisions. you know, there were some hard decisions that were made because yes, ma'am, there was no plan to um not in terms of I think the budget went up slightly, but there was no incremental tax request. Um but the plan was to look at each and every division actually even below the division level look at where there were potentials to make savings to make changes to look at the operating structure and to take whatever resources we could glean from that and reinvest those into these categories into these four areas. So it wasn't easy. This was you know I I've been in this role for two and a half years. This was one of the tougher budgets uh just because of that exercise, but I think it was an exercise where we really pulled back the covers, if you will, and took a long hard look at how we could make it efficient, how we could make it better, keeping our eye on these goals. So, as we get into operating, I'll be able to explain a little bit more about that, but that's the overriding theme.

Thank you for that. your back and I'll wait to the operating side budget. Yes, ma'am. You can continue. We're I say we're already a little bit behind schedule. Um it looks like housing and development. Um, okay. So, for housing and development in terms of CIP,

it looks like Okay. Housing and Community Development, Vice Chair. Yeah. So, the big the big ticket item there is the Southwest Twin and the effort around there. Uh, $13.7 million is targeted for Southwest Twin. That's a few pages back. It's Yeah.

Yeah. Unfortunately, we don't have page numbers, but let's see. One, two. Yes, ma'am. We will do so. Seven pages. Yeah, there we go. 13.7 directed toward the Southwest Twin and an additional 11 million coming up in FY28. And then middle income housing has a million allocated for the upcoming fiscal year as well as a half a mill for South City Museum.

Yeah. projected. Which project? When is Southwest Twin expected to be completed?

Yeah. All right. Good afternoon. Ashley Cash, 125 North Maine or 170 North Main, housing community development director. Um so Southwest Twin is uh phase the first phase which is uh which what y'all saw was site grade and when y'all went out there the police precinct is the first uh element to be delivered the anticipated delivery date is uh December 2026 before the end of this year. The library is anticipated to be delivered April of 2027. Um and then there's a fleet maintenance building that will come online uh in between that.

Thank you. And if anyone has any we're going to move from CIP unless there's some any other pressing things you want to say. What I would like for everyone to do is to now that we have the kind of full presentation and it at least has a breakdown. Submit your questions to your analyst and the analyst is going to submit them to um um to Regala so that we can make sure that we have those at the next hearing. And what I'm going to ask um Miss Mauricio to do is is for the next budget hearing to have a a section where we just do questions um or and responses to the questions from the previous one because I think as we go through this questions are going to come up. And and one other thing I would say and this probably would be a director cash thing maybe coupled with a um Chief Zena thing. Um I so the mayor announced um of course priority number two is housing and um announced 10,000 houses and I know that Chief Zena has been working on some inter agency things but just really understanding in the budget where this kind of where the priority is in terms of the funding to be able to back that housing. I know there are many challenges as it pertains to um infrastructure disinvestment, a lot of issues that come up with developers and and those things, but really understanding um is there a plan? If so, what is the plan and how is it being funded um this year or in years to come? May not necessarily be through CIP. I don't know if it's going to be through some future bond issuance. I don't necessarily see it evident in the operating budget. So really understanding what that path forward is for those 10,000 houses. Um and just making sure that the money that we're seeing allocated actually aligns with what we're saying our priorities are. Chief Zena, thank um council members, we

are bringing a presentation to the HCD committee um the first meeting in June, if that would be okay, that um goes over the goal, um what we anticipate uh would be the gap between where we are today and meeting that goal. uh and then strategies across multiple um dimensions including funding and financing to achieve that goal. So we'll be able to answer your questions at that time. Thank you. That'd be after the budget's done.

June 9th Any questions? Yes, you're recognized. How much funding was allocated for this uh for the 10 the mayor's housing project

in the CIP the $1 million that was noted a second ago the middle income housing infrastructure that's just in FY27 as you see the uh ask is for that to go up in subsequent years um so that would be um money that would come through the CIP. Uh since it's CIP, we have to use it to um spend that money on public infrastructure. Um so there are limitations in how that money can be spent, but that's one area. There are also other projects um that are associated with the CIP that the city supports that um delivers housing units. There's the affordable housing trust fund that's in the operating budget. Um there are other funding streams that um are controlled by other component divisions and agencies may not necessarily show up directly in this budget uh but also are are ways that we influence housing construction through funding and financing. Um but if you recall from uh the mayor's uh address, the city is is not um funding all 10,000 housing units. We're creating conditions for the increase of supply of housing uh to a goal of 10,000 units by 2030 through a variety of different factors. Funding and financing is one of them, but regulatory uh and infrastructure support is one. Land availability is another. We have other uh ways that we're supporting that goal.

Okay. And that'll all be in the presentation in June. That's correct. Okay. Thank you. All right, let's move on to the overview of the operating budget.

Okay, we can switch to the original slide show that was on the screen. Okay.

Okay. Um well, thank you again. And I'm Walter Pson, chief financial officer, 125 North Maine. And we're going to begin the operating budget overview. And as I mentioned earlier, and I want to reiterate, I won't rehash the mayor's goals and his objectives for this budget, but we've shared them during CIP. But I do want to touch on several things. one being we're in a difficult financial situation. I want to just make that plain and this is a challenging time not only for us but for for many places. Um second we tried to move from I say ostensibly or at the beginning of this exercise a structural deficit. So essentially by a structural deficit I meant that our expenses outpaced our revenues when we walked into this budget year which created a structural deficit but now we've been able to work to a balanced budget which we're presenting today. And third I want to talk about how we've aligned the investments as well as the savings to meet these objectives. And I think that was part of your question, Councilwoman. We want to make sure that we have that alignment with the limited resources we have. So, we didn't go into this budget in a half-hearted way. We didn't go into it with any kind of blinders on. We went in it I would say we went in with a plan toward making core investments toward making sure that the budget was balanced and making sure that every step we took made sense for the city of Memphis. With that we talked about and I touched on this already. We can go to the next slide.

Again, I want to emphasize, I didn't bring it to you today, but I think many of you that probably kept up with the news saw that New York, I think, recently presented a balanced budget, although they started with a 12 billion structural deficit. Now, I haven't looked at their budget this year, but I'm really interested in seeing that, but cities across the country have faced a similar exercise. Um, inflationary pressures, especially around fuel and petrochemicals, a lot a lot of changes that have occurred throughout. Um we we're we're meeting those challenges. Our federal funds, they've expired. CARES, ARPA, they're things of the past. We're in the last few months of even reporting on our ARPA expenditures. So all of that's that's done. Inflationary pressures. I don't know if many of you drive. I do. Gas prices have been skyrocketing. The city faces the same market that we do as individuals. That fuel cost permeates everything that we do because everything that we do requires some type of transportation or logistics. So if we're moving equipment for traffic signals, if we're bringing in equipment or if we're going out to service somebody, that that fuel cost along with the related costs have driven inflationary pressures to new highs and revenue growth is slowing. I think that you all may recall I believe the budget chair mentioned about state shared revenues. Well, you know, we have state shared revenues. Uh we have avalorum taxes or property taxes. A lot of those areas just are not seeing a lot of growth right now. I mean, they're healthy, but they're just not seeing the growth that we would want to see to keep pace with the rising expense environment. So with that, revenues remain relatively flat

at 1%. Of course, we had certain things and and we talked about a structural imbalance. Here are some elements that made up that structural imbalance and I'll go into more detail. Our pension obligations, our pension obligations. I think I have it. Um I know I have it later in the presentation. Our pension obligations, our health care costs, and our personal expenses. And by that I mean the structural cost of personal expenses. And and just to take a look at that, what that means is if we did nothing else with this budget, these expenses would have organically increased. So if you think about it, if we just stood still and said we're not going to touch a thing, we still had additional costs resulting from these items. And that was a big part of the structural imbalance as we approached this budget. Next slide. So with that, we'll get into the numbers. The starting point for this budget, we had a $32.4 million structural deficit. In the process of going through a huge exercise, and I'll take my hat off to um a consultant that joined us this year and and has provided invaluable service in that regard. We went through over $150 million worth of different scenarios, expense options, revenue options to try to get to a balanced budget. We then turned to investments, things that got us closer to those four main objectives that we talked about. And we finally came out of this process with a nearly $898 million budget, almost 900 million. But it's a balanced budget. And it's a balanced budget based on realistic numbers, realistic performance, not kind of pie in the sky or or made up numbers that fit a certain narrative. So here we go again. 150 million in

potential actions. The budget was reset to reflect our ongoing and sustainable costs. And when you speak to the divisions, you will probably hear this, but each division had separate meetings to talk about and validate and support their assumptions and their arguments. And we talked to divisions quite frankly about making real reductions. These are not reductions that affected service quality. These were reductions that were required to meet the new realities that we face. After those exercises, we then came back to the budget at a very granular level and rebuilt and aligned all the numbers to get to that $898 million number. Operational pressures, touching on them again, overtime and staffing demands. Well, we've been fortunate. You all know that you've been here with me these last couple of years. Overtime has been one of our biggest challenges. We know they're going to be a challenge this year. Legal and professional service costs. We've seen a fairly sizable increase in our legal and professional service costs in recent times. uh everything from our insurance contracts which have gone way much higher than they used to be for a lot of our property and casualty insurance to ongoing legal expenses as people are engaging in a lot of legal challenges here in the city and of course utility and insurance increases. We talked about the structural issues that we've already faced and then of course the new investments because at the end of the day we have to meet the needs of the citizens and the new investments were a mandate for us to do that. Next slide. Our revenue reality.

Our revenue growth remains pretty modest. Um, we did see some benefit in FY26 from state assessed properties. That was one of the things when we came before you, I guess about a week ago and presented the Q3 reports. You probably noticed that we were looking at a a marginal contribution of fund balance. That was a big change from Q2 when we were looking at a possible use of fund balance. That in large part was due to the state assessed properties. But beyond that, pretty much everything else is flat within the Avalorum space or the property tax space. When we looked at state shared revenues, we saw state shared revenues being a challenge and it was a challenge that was driven by state legislation. That legislation essentially will shift a lot of resources from western Tennessee based on population growth to middle and near eastern Tennessee uh because those areas are growing faster than we are. I think the mayor along with other members of the administration made a lot of overtures in Nashville to try to forstall that effort, but as of right now it's our reality. So, we're still facing that. And then we looked at the one-time and non-recurring costs, things like FEMA reimbursements, and we removed them so that we could look at a realistic impact of our revenues. But the bottom line, of course, is that the revenues alone were going to leave us with that structural gap, the 32.4 that we talked about. Next slide. Let's get into the numbers a little bit. So personnel expenses, we see personnel expenses going up about 2%

year-over-year. Uh you see the impact of a lot of those hard nose discussions in our materials and supplies. We see a 5% reduction there. You also see it in our capital outlay program as we really took a look, a firm look at everything that we were doing. Grants and subsidies are up a little bit. Um we see that as a result of quite frankly some of the costs that that that we can't get rid of the structural costs uh that that is in large part related to what we call our pensioners insurance as well as assistance to other parties like mata that we know that we're going to be helping and supporting this year. We see a little bit of a decline in our expense recovery and our expense recovery in this line is bas ma b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b basically state street aid. And so state street aid in part has been trending downward lately and is likely to continue to do so. Service charges we see a marginal increase as well. Uh those service charges are going up organically because that's the cost of doing business. Transfers out again driven by the cost of doing business. A lot of that could not be helped. Switching down to the revenue side of the equation. We look at local taxes. we see a marginal increase uh 3% that's barely keeping pace with inflation but it is good to see as opposed to a reduction state taxes we see kind of more of the same licenses and permits I want to spend a little time on that because we've had a lot of discussions around licenses and permits and the the primary driver there is the auto registration fee and I want to speak to that for some of the parties here we have been working with that I guess for a little over a year now and in the initial onset of the increase I think we were expecting a lot more but the

implementation took some time. I think we were only fully implemented by February of that initial fiscal year. So we took some lumps on that. So this year we came back with the idea being that we were going to recoup and and and recover that. And this year has been better. Uh, I think that year we were we missed by about $10 million, but this year we're trending probably toward 22 to$23 million just simply because we're not seeing the kinds of numbers that we want to see to really load in at the full $27 million number. Fines and forfeitures, that's primarily Did you have a question, council? Okay. And I think I had some questions I think that we asked that we're not trending and what is the why that we're not trending now where we should be.

I think that's an excellent question. I wish I had an excellent answer for you. Um, we watch those numbers. We review those numbers. We get a monthly report from the uh clerk's office and the numbers have improved, councilwoman, but they're not where they would need to be. Essentially, you would want to look at a number around 2.4 million a month on average to get to the numbers that we're projecting. And what we're seeing is, you know, numbers ranging from 1.8, 1.9 up to 2.1, 2.2 on a good month. So, we're just not quite getting there. You know, the the drivers behind it, you could say that they could be just a decline in people applying for auto registration, miss less vehicle sales. I don't know. I I haven't done that next level step finding out what those drivers are, but they could be broad in nature.

Are we going to do the next level steps to find out why why and what those drivers are? Are we going to do that? We can. We've worked with that office to get additional detail and the details they've shown us has shown a year-over-year decline, but again, I'm not able to independently verify those numbers.

Okay? because my colleague had a great idea when she did this and that was to help mata and to implement maybe some dedicated funding from this project and to hear that we're not trending where we need to be and I you know and just doing a deep dive on the why is very concerning to me because it's an increase and that was a huge increase and hearing from my constituents who are older, you know, they didn't expect that because that was there that was a lot of increase happen in that budget taxes along with that. but this was specifically to help matter and that is what my colleague said and then we're not trending and we're not meeting the purpose then I then there's a problem and and that's understood and that's what I said when we actually spoke with the clerk's office and gathered the data they showed year-over-year declines which we found a little disconcerting ourselves and that's why I said beyond that we can't necessarily say whether their numbers are right or wrong we will assume that their numbers are Right. But as to why there would be a year-over-year decline, that's that next level that we haven't been able to independently assess.

Thank you. I think my colleague, Councilwoman Green, you're

Thank you. Just to sort of answer your question. I know that the clerk's office was under an audit because they were seeing similar things on the county side. The county did do that next level dive and found numerous problems. And once the audit was completed, um it took a long time because there was not a CFO in place. So it took them a while to recreate all the numbers. But once that audit was completed, we started seeing an actual uptick in intake in what we were supposed to be receiving at the level we were supposed to be receiving it at. And you know, we just had an election, so hopefully we'll have a little bit more transparency moving forward. But I just I share that with you that on the county side, they experienced the exact same thing. And so they went ahead and did the audit because it is a county office. And once the audit was completed and the numbers were um I guess more aligned, we started actually seeing an increase here in what we were receiving on the city side.

Okay. So hopefully with the new transition or whatever the issues are over there, um hopefully we will see an increase because this was done intentionally and it had a purpose for why we did it and that purpose needs to be fulfilled. That obligation because matter is very important to us and we want to make sure that what Councilwoman Green initiated for, we want to make sure that happens because that's very important and we know the status of where matter is. So, I just wish we had have did a deep dive and audit it just to see.

Well, yes, ma'am. And again, I come back to the fact when I say we didn't go to the next level, the next level was information that was specific to the county that we did not have access to. But I too share your your zeal in seeing those numbers turn around for the city as well. Thank you, chairwoman. Thank you, Councilwoman. Thank I see for our projected income that we are relying on the XAI and of course the correction of the funding that we're getting from the from the tags and all of that. But I just wonder are we including the chamber? Who who's responsible for intentionally bringing new revenue to the city?

Who else responsibility is that? Well, you know, I'd have to say that's a pretty broad question. Um, I'd say that u the chamber is a good start, but I mean, I think that we all can make a case for it. U the work that we do, the work that you all do, especially in leading the city, help to create an environment where new businesses come, new citizens come and the city begins to flourish. Uh the chamber of course is ideally designed around driving additional businesses especially larger business to the city. I think there are other chambers I know some individuals came from some of the other chamber organizations here in the city that are are tailoring specialized programs to create incubator relationships to bring businesses that are already here up to par so that they can generate new revenues as well. So it's it's pretty and of course the mayor he's like kind of the chief ambassador I would say. I mean I know that he spends a lot of time even last week there was a group I think by the name of ACE that was here from both North America and South America and I wasn't at those meetings but I think there were discussions there around what opportunities can come to Memphis. So it it's a broad question. As a council, I'm saying that we need to make that uh a priority to see who's responsible, who's doing what, what are we doing, where are we going, who are we recruiting, how was the progress, what are the next steps, and moving forward, making an intentional effort for that.

I agree. Councilwoman Cooper Logan, you're recognized. I thought you said sister Logan. Sister Logan, too. Councilwoman Logan, you recognized, but I apologize. Um, we we had we asked the chamber and tourism 901 and um several other because they do have a hand in that as well.

Uh if you think about, you know, when you think about places to live, you want to live, there are certain things that you look for and I think those things are important to attracting people. Safe, clean, beautiful. either you don't necessarily always or some groups don't always look for a lot of attractions. You want to make sure it's safe and clean and beautiful. I asked because and even talking with some of the leadership in West Memphis, even the utilities director is responsible for going out

and having conversations. So, we just need to be intentional and come together and everyone understand their assignment so that we can move forward. Councilwoman, uh, Dr. Easter Thomas, you're recognized. Thank you, Chair. Um, Chief Person, thank you for the overview. I know you're still going through it. Um, I'm on Can I go to pages in the general overview in the front of the booklet? Is that okay? If we're still in general overview, can I ask questions? But it's referring to the overview in the book. Doctor, are you referring to the proposed budget book? Yes. Okay. Hold on for a second. I get mine.

Okay. I'm still on topic though. Just letting you know it's not on the screen.

You did. Okay. Um page 11 um for revenues, can you say like what's happening with our sales tax referendum? and why uh last year we got 269 but this upcoming we're budgeting 13 that's something out of our control there some like just what's going on with that cuz I know like our our benefits and our prek come out of that. So

uh yes ma'am so when you look at page 11 and I have I don't know if I introduced my my budget manager Anita Taylor who was joining me she's is assisting me in this effort. So that's a transfer in line doctor. And so essentially the reason we have reduced that transfer in is because that fund has u has been fairly well utilized. By that I mean that we have been doing deficit spending in that fund for several years. Our expensive h have outpaced the revenues and so now we're having to curtail the amount of money that we bring into the general fund from the sales tax referendum fund.

Okay. But the amount that's um already dedicated to um the retirees and prek hasn't changed. No, that that amount has not changed. Okay. It's just something we're transferring into general. Yes, ma'am.

Okay. Okay, that makes sense. Um and then my other question was I know that like you have on the screen, we're counting the 15 variants from XAI investment. Where is the line item um for the community group that gets the percentage of that? And is that number minus that percentage that's already been promised to however the community group is is determining how that goes?

Um yes ma'am. So that community group actually has a separate fund. So what we've done is we set up a separate fund to house the monies that are subject to the ordinance that requires that 25% of all the XAI money goes to community service-based projects and then an additional 1% goes to education and marketing for those projects and that is a separate fund which we can provide for you. Is that on the Is that anywhere? Not in this book or and we're not going to cover it today, but we can provide it for you under separate cover.

Is it counted in the 15? Is there 26% counted in the 15? Uh, no. No, because it's not So that 15 is after, right? It's not going to hit that line. 26. Okay. Right. It it it goes to a separate fund. Okay. That's all I want to know to make sure I'm looking at the numbers. Right. With that in mind, Thank you, Chief First. Thank you, Chair. Thank you.

Um quick um other thing. I know that um chairwoman swearing Washington asked about like revenues and and I think maybe that was kind of more towards kind of like economic development and of course we have edge and chambers and those things but I did make a note um just within our city I guess who is responsible for exploring different ways to create revenue I understand it's kind of in all of our responsibility like for instance Councilwoman Green came up with the you you know, looking at this and increasing it. Do we have kind of like a dedicated person, staff, department that looks into that? Because I know when I got on the council, one of the first things I said is, "Hey, why don't we have tolls?" And then, of course, I learned that there was some statutory barrier to that. You know, of course, we can't legalize marijuana like, you know, that's an option, right?

Um because states are really, you know, benefiting from that and we can't do that. So, I understand there are some barriers, but do we have around or even before budget season or during like a dedicated within the city that look at different places to increase potential revenues? And that's one of my questions. You don't have to answer it today. That's probably not even a you question, but if we could add that to the list, I really do want to know kind of what our efforts are around exploring those potential options. Councilwoman Walker, you're recognized.

Thank you. I'll be brief. And to your um question also, year before last, I asked if we could tax chicken wings because we eat a lot of chicken wings here. So, I get it. And I'm working on some ideas that will work for us legally. Yes. Thank you. I yield the floor. Thank you. Um, so now we're going to move to finance. Okay. Sorry. Were there any other things that you wanted to point out from the operating budget that you wanted to go over?

Just whatever y'all want to talk about, ma'am. Uh,

okay. If if there if there are any other um questions, again, we encourage you to look through, you know, now that you have kind of these comparisons to the budget book, look through it and then submit any questions. Oh, I do have one other other quick question. Same same to what I was asking about do we have a dedicated department person for revenues? I kind of have the same and I I guess to some extent directors do this in terms of auditing their own departments but really determining um you know what's working, what's not and what we need to move around. So when it is time for us to go through and figure out what needs to be cut or what needs to be um built in more in terms of capacity that we're able to make those decisions in a more informed way because we don't particularly get that that's something that you all do but we're ultimately the ones that have to say yay or nay to cuts or or moving money. So it would be helpful to kind of understand that process as to what kind of internal audits are going on to determine that we're getting, you know, the return on investment.

Yes, ma'am. Thank you. Thank you. Dr. Warren, you recognized as we're going through this, perhaps you could get our bond uh people up to explain to us where our debt cliff money is coming in and how we're making how we're seeing that this year. Seeing as the $60 million we're expect we're expecting to see in 26 three years ago, I'm not seeing it. I want to know where it is and how we got rid of it. Well, you know, it's interesting that you mentioned that because uh Deputy Chief Walker is here and he's planning to present that. So, I guess Okay, I'll wait for that. I think with the charity of the chair, we could actually do that

and then move back to finance or, you know, the overall finance budget. I think that might be good because I think a lot of us are wondering, okay, we've been waiting on this debt cliff and it sort of was promised. I just wonder was it all smoke and mirrors when it came to us in the first place or did the economy take it away from us and if so, how? Because I think that's something people would want to know cuz we've been talking about it to people for quite some time and if it's not going to be available, why is it not available and what happened to it? uh might be worthwhile.

Yes, sir. Well, with with deference to the chair, uh if she's willing, then uh I can ask Deputy Chief Walker to come forward with the debt service. I'm willing to wait. Whatever you want. Just with difference to you.

We're at 3:21. Is that Do you mind, Dr. Bourne, if we bring that one back? We're going to bring that one back. Okay. You got it. Okay. And and um Miss Mauricio has added that to the list. All right. This is the one. Okay. All right. With that, we'll start with the divisional discussion around finance. So, we're classified at one point we walked through and classified all the different divisions. We're classified as a medium division. Uh, of course, the large ones are your public safety divisions and then we have very small divisions as well. Um, within finance, you have seven major service centers. Administration, which is what I'm part of, along with some members of the administrative staff. You have financial management, which is essentially our accounting area. City treasurer, and you all have met Deputy Chief Davis. Uh we're glad to have him. He is our new treasurer debt management. Deputy Chief Walker is over debt management. And don't let me neglect to mention that Deputy Chief Jennings is over our accounting area that I just talked about. The Office of Financial and Strategic Planning. You met with her a little bit earlier. That is Miss Joiner Marshall. Uh the budget office. Uh Anita Taylor here that joins me is the head of our budget office and procurement and sourcing. our uh purchasing and sourcing agent who that is a revamped department. We actually took a former department and merged it into our purchasing area to make them much more streamlined and productive. So that has been a success for us this year. Next slide. Here's a

quick look at our authorized compliment. As you can see, we went uh up to 118 during this fiscal year. Uh, of course part of that I want to bring your attention to two areas that are no longer in finance. One being the office of comprehensive planning which reports to de I'm sorry to chief Zena and has been moved to the executive division and equal business and development which is the area that was absorbed into our purchasing area. So with the FY27 request, we're requesting an authorized complement of 99 versus 118. Next slide. So our total budget request for this year has gone down. So for a variety of reasons. One, much like all the other divisions, we subjected ourselves to that same hard-nosed exercise of making sure that the money we were spending and the dollars we were spending were spent efficiently. So we did see some reductions. Additionally, the move of the office of comprehensive planning to executive also saved some resources. Next slide. So, here's a historical budget comparison. So, you look at our finance budget as it compares to our past budgets. You can see our adopted budget for FY26. If you look closer to the right side from at least from my vantage point, you see 10.8 eight in personnel personnel services expenses being reduced to just under 10 for this year with the total amount going from 16125 in total expenditures down to 12697 698 for this year. Uh we see a slight uptick in revenues and that is due in part to rebates that we receive. Next slide please.

This lets you take a look at our historical actuals against those budget numbers. So you can see how we trend against historical actuals. Not much to see there other than what we talked about. Uh next slide. So key budget drivers. The FY27 budget reflects a $4.4 $4 million 26% reduction from FY26 forecast driven by one-time grant fund initiatives and non-reoccurring expenditures. That of course is the structural change where we moved to executive and the I say the supporting material and supply cost that also supported that exercise. What we look at this year is a budget that is aligned with the mayor's priorities. Uh we're looking for focusing on core operations and sticking to our nitting here in finance. Next slide. So in terms of major impact M&S or material and supply budget, we don't have anything that really hits us hard. We don't have any major contracts that we solely rely on that are are dealillers for us. We have some major software packages uh that that we do operate. Oracle being one which is our enterprise system but beyond that we have a pretty diverse portfolio of of investment opportunities. Um one of the things that I did want to bring out is that even though we have looked at really right sizing our budget and making it more efficient, we have not stopped our property tax relief program. We have not stopped the property tax freeze program and we have not stopped our quarterly payment plan. So we are still maintaining and these are our most customerf facing or citizen facing areas within finance and so we're planning on maintaining uh and actually improving our support in those spaces.

Next slide. Performance metrics. These are elements that we use to measure ourselves internally and we take a lot of pride in hitting these metrics. So terms of monthly financial reporting, that's what we use to obviously support the online budget tracker as well as our monthly reporting as well as the quarterly reporting which we provide to you. We're 100% uh with our contract requisition process. You know, we we struggled there, not struggled, but we were at 95% for a few years. We have returned to 100%. uh the budget office uh my my guest here at the table we have hit that mark every year under her tenure and I just want to brag on her a little bit and say we have received back-to-back budget awards from GFOA in that space so that that is a a real credit to the budget area and of course we've maintained uh the city bond rating even in the midst of a lot of financial struggles. Next slide. Enterprise asset management. So our big initiative is around the enterprise asset management space and this is driven primarily out of our new uh purchasing and sourcing department. This is a system that we're planning to use to track all of our assets. Of course the key focus will be around our fleet. I think uh I I'll defer to Chief Adams, but I I want to say we have over 5,000 items in our rolling stock, but with that we unfortunately I learned u just recently that we don't even have all of our basically our ownership certificates in one centralized location, but we're in the process of improving that because once we learned it, we're acting on it. So part of that process will then also involve creating new tracking systems and capabilities so we can track these vehicles in real time that we can perform proactive maintenance efforts that we will have these vehicles

chipped. I mean not only for GPS but for just what they call maximum likelihood failure scenarios for operation parameters how they're operating in and outside of parameters and also for disposal criteria. So if you get to that threshold point where it begins to come cost more to maintain it than to sell those vehicles, then we can start to have a more structured sales and and vehicle maintenance approach. This also goes for a lot of our fixed plant equipment as well, but I think the real bang for our buck will be around our fleet management area. Next slide, please. This outlines the implementation plan for this exercise. So Q1 we'll go through the procurement of the software contract execution and project kickoff. Q2 system configuration and the data integration facilities and fleet and the new domain implementation. By Q3 we're talking about palleting it. So by that we mean we'll probably implement it in one or two divisions to make sure it's operating effectively when we work the kinks out. And then in Q4 we plan on a full enterprise roll out for the system. Next slide. I spoke to a lot of these before, but here's the slide that really drives it home. We're talking about centralizing our citywide asset portfolio, getting all of those certificates in place, making sure all of our property and maintenance records are available. We start having preventive as well as predictive maintenance for a lot of our rolling stock, improved capital improvement planning. So you'll see and you saw in our CIP process a lot of capital acquisition of course is always heavily weighted toward public service but this will give us more informed judgment about some of the other divisions that may not be getting as much attention so that we can be much more judicious about the use there and

then standardized workflows across departments so we won't have these little FFTs where general services may manage vehicles one way but police services manages them another and these systems that we're evaluating also have dashboards so that you and I can look at them in real time and see what our fixed assets look like. Next slide. This is a pictogram that pretty much shows what we've just described. We talk about the current state, disconnected systems, limited visibility going to the future state of a centralized system with real time visibility. And these are projections of operating improvements with a 20 a 55% increase in in task efficiency, reduction in in vehicle inspection time leading to my favorite topic, an improved financial impact, reduced repair costs and improved life life cycle maintenance. Next slide. So I believe this is our final slide. When we talk about challenges and risks in finance, u when we look at what we've done, we're saying that possibly we could look at some challenges based on the exercise in filling critical vacancies. Um but I would say that it would not necessarily be directly related to exercise because some of our critical vacancies we have struggled to fill for some time and it's not based on just achieving efficiencies. is just the market dynamics that we face. Uh reduce part-time staffing flexibility. Typically in the treasury department, that's when we really need our part-time people. But fortunately, as part of this exercise, we figured out a plan to address that. So, we've mitigated that risk for ourselves. And so, we're excited about it. We're going into the treasury season with a new treasurer. And I think that we're going to be doing really well this year. and deferral of underfunding of essential systems. I

don't think we're having a problem there because everything I've seen, we've been able to fund clear gov, which is our budget system. Uh we're working closely with it with the Oracle implementation. So things are really generally going well. I don't think I have any more slides, do I? All right. Well, that's that's it from pure finance perspectives. Count some people in the queue. All right. Thank you so much for your presentation. Council, did you have anything you want to add? When you're I'm sorry. Thank you, Chair. Did you say when you all are expecting to see the some changes or results benefit from the new asset management?

Yes, ma'am. Um could you roll back to that timeline slide for me? Just a little bit more. There we go. 11. There we go. So Q4 is when we're expecting to see the full enterprise roll out with the dashboards and the capital planning integration. Now we start we expect to see a pilot roll out in Q3 but I don't know if you'll see the tangible impact depending on where it's piloted. I don't know exactly which division will be willing to work for us but you know so it might be like you know if it's a smaller division then you know you'll see it but it won't be like something that you can see in an appropriation statement. It may just be more anecdotal. Okay. All right. Councilman Warren,

is now the time we're going to see the debt cliff? When will you plan on presenting that? Yes, sir. I I would invite Deputy Chief Walker to come up and present the uh the debt service fund. Is that part of this presentation? Well, it's a separate fund. Um he he works with me in finance, but debt service is one of the many funds we manage. We manage a lot of funds. No, it's it's it's incorporated in the overall enterprise, but he he presents it separately because he's the debt manager. Oh, okay. All right. Please give us your name and address for the record, and you may proceed.

All right. Andre Walker, WCFO, 125 North Main Street. Okay. We'll start with the debt service fund FY27 budget. Let me Where is this in our book? Yeah, right. You should have received this should be in your book. This one. Thank you. So, point of information. Thank you. And then I will have a separate presentation that you don't have for the uh debt clip. So, is this the 50 million? Just one moment before you proceed. Councilwoman Cooper Sutton.

Okay. I was just want a point of information just I think Dr. Warren has cleared that. We have we were discussing that. Is this the 50 million uh debt cliff? Is this what we're about to talk about? Um yes. First we'll go over the debt service fund and you'll see a portion of the debt cliff presented in the debt service fund FY27 budget. And then we got a separate presentation which will be handed out. It gives a lot of details on how we went from a decrease of $63 million to close to around $35 million. Okay. Thank you. All right. Okay. May proceed. Thank you.

All right. So looking at the debt service fund budget for FY27, we're asking for approval of $165.5 million budget, which includes about $91.3 million in principal payments, about $72.8 million in interest payments, and about $1.3.4 million in payments to various financial service providers. key budget priorities, timely payment of debt service, debt service got to be paid on time every time and then also making sure that we have sufficient funds available for capital expenditures. Going to the next slide. Uh looking at the next to the the far right uh column, the next to the far right um FY26 forecast, we'll see that expenditures are projected to be $351.2 million and revenues are projected at $335.1 million. That's a difference of $16.1 million. So in FY26, we're projecting a use of $16.1 million of committed fund balance. Looking at the revenues, the $335 million, that includes about $2.5 million of use of restricted fund balance. So in total in FY26, we're going to have a use of $18.6 million fund balance. FY27 revenues are projected to be $181.7 million and expenditures $165.5 million. That's a difference of 16.2. So in FY27, revenues would exceed expenditures by 16.2 million. Compare that to the use of

$18.6 million in the current fiscal year. That's a swing of about $35 million. about $34.8 million to be exact. Let's go to the next page. Looking at um FY26 Q3 actuals expenditures total currently $158.3 million whereas an FY26 forecast expenditures total $351.2 million. Majority of that difference is due to the fact that when this table was run, we had not yet paid all of the debt service for the year. We got another about $24 million in principal payments that would be paid and about another $19 million in interest plus the actual numbers does not include the $150 million that was used to pay off commercial paper. Going to the next slide. key factors driving the budget change. So, principal payments are going to decrease by 39.2 million. Interest payments, on the other hand, will increase by about $4.8 million. When you comparing FY27 requests to FY26 adopted budget, if you go by compare the 27 requests to the forecast for 26, interest will increase by about $4 million. explanation of changes. So we in this fiscal year we paid off the 200 the 2015 AGO bonds and the 2014 BGO bonds and those principal payments total $55.9 million. So that's $55.9 million less in principal that we won't pay next year

for those two bonds. However, we did just issue geo bonds 2026 and this will be the first time we make a payment on the 2021 caps that were issued for Accelerate Memphis. Those two account for an increase of about $12.1 million. The slide says um other bond principal payments increase of 3.8. Actually, it will increase by $4.6 million. It's sort of like your mortgage payment. You pay the same, let's say $2,000 every month. Initially 1,500 goes towards interest, 500 go towards principal. Then as you pay more and more principal, your payment stay the same. But more of that payment is allocated to principal and less is allocated to interest. So that's happened with the other bondage. As we pay them off, the principal payment increases and the interest payment decreases. Next slide. performance metrics. Debt service payment got to be paid on time every time. And then also we make sure that we got sufficient funds for CIP expenditures. Doc Ward and Miss Hawkins, they both handled that. They do a good job on that. Let's see. Next slide and then we'll go to the um debt cliff presentation. Challenges and risk interest rate volatility. We've identified about $5.1 million in PV savings potential savings if we refinance for savings the 2018 to 2016 geo bonds. We've also identified a potential $3 million in PV savings if we refinance the 2017 downtown TDZ revenue bonds. Well, we got this thing called this Iraq war going on. Since the war got started, interest rates have increased by 20 to

50 basis points across the board. If they continue to increase, we may not be able to garner these potential savings that we show here. All right. Now, you guys should have this the diminishing debt cliff. All right. Thought we first decide what exactly is the debt cliff. In my opinion, the debt clears if the difference between the debt service that we were going to pay in FY27, compare that to FY26 back in 2021, there that difference was about 20 $63 million. Now, that analysis sounds good, but it's not perfect because it does not consider debt service on um the bonds that we issue for 100 North Main or the debt service that we that we issue for the purchase of the Sherin Hotel project. It does not include shortfall in debt service on the downtown TDZ revenue bonds or the Liberty Park TDZ revenue bonds. It just look at the debt service on the geo bonds when looking at FY27 and comparing it to FY26. We go to the next PL page, you'll see this chart, this graph, and as of June 30, 2020, that service in FY26 was going on GEO bonds was going to be $131 million. that service in 2027 again as of June 30, 2020 on geo bonds was going to be $68 million. That's a decrease of $63 million. That's the debt cliff that you guys were informed about. Well, then we issued accelerate Memphis bonds, the cabs and the sibs.

As of June 30, 2022, debt service in FY26 is now $142 million and debt service in 2027 on the go bonds is now $91 million. So now the debt cliff has decreased from $63 million to $51 million. Now let's go to the next slide. where we did this refunding in 2022 was we had a significant amount of PV savings. I think about $17 million in PV savings from that one transaction. What we did was we frontloaded the PV savings. Most of the savings occurred from 2022 through to 2026 and we have very minimum savings in FY27 througha after debt refunding decreased debt service in 2026 by about just under $6 million. So that means the debt cliff now is going from 161 down to 115 is now $46 million decrease. Then finally, we issued bonds last month, I mean back in March, geo bonds. We had a small amount of debt service in FY26 on those bonds, about a million dollars. But we've got about $11 million in debt service in FY27 thereafter. So that decreased the debt service, the debt cliff even further down to about $36 million. Now, if you re will remember in the other presentation, we had a use of fund balance of about $18.6 million for this fiscal year. And we're going to next year a contribution

of fund balance of about $16.2 million. Those two added up to about 13 mill $35 million. And that gets you close to this $36 million debt cliff or decrease in fund balance. And that $35 million includes not only does it look at the debt service on the geo bonds, shar bonds, um 100 north bane bonds, and also includes the revenue as well. It's all inclusive. That concludes my presentation. I think you're gonna have to take me aside.

I know cuz it sound like you just speaking French. I mean, you know, it's just very quick. The the slides are on opposite sides of the paper, so you're flipping it back and forth. You know, it's it's sort of like I can't keep up with what you were doing. So, I'm sure that it sounds accurate, but I don't get it. My apologies. I want a second to make the presentation and hide someone to print it for me. We we need to get him to come with the cliff notes presentation. But the point is this that we just got 36 million. That's the whole point. Yes, ma'am. The point is we got 36 million. But remember, but

remember part of that 36 is the fact that we're not going to use $19 million of fund balance next year. We're going to use $19 million of fund balance this year, but you know, next year we have a contribution of about $6 million in coming from where where uh revenues. So we let's see actually if I go back to this and then I want to ask you about 100 million is that that ugly building that's sitting down in our downtown is just sitting here that's a horrible mess that we got bonds on. Is that that ugly building? Um that deplorable ugly building. I'm just trying to make sure.

Uh counciloman ask a question. Well, no, no. Walter Pson, CFO, 125 North Main, we we did issue um some some bonds to support 100 North Main, but they were not GEO bonds. They were they were revenue bonds that Well, he just Yeah, I'm I'm just going by what? Yeah, deputy just said. Yes, ma'am. He's right. We did issue bond but but there general obligation bonds are backed by the full faith and credit of but GEO basically revenue bonds have different funding sources and so those are economic development bonds that that support that ugly building right there. Well 100 North Main I will say I saw that sits in the middle of our downtown.

Yes ma'am. Okay. I'm just asking just clarification but we we'll have a I I'll get with you like I did the last time and you explained to me. Yes, ma'am. You made it very simple. Yes, ma'am. But I know where you're going. I heard you when you first drove up. Yes, ma'am. Thank you. All right. All right. Thank you. Anyone else in the queue? You may proceed. Or are you done? Oh, I'm done.

Okay. Perfect. Well, if he's done, we do have a file called other funds and it's really at your discretion as to whether you want us to present those about five or six small funds that that we also manage in finance. I don't know what if time permits. Okay. All right. So other funds are various other funds which we'll walk through really quickly that we manage in in the finance department of course state street aid and we talked about that a little bit earlier that is a fund that we have seen some downward trending but it is backed or funded by gasoline tax revenues received from the state of Tennessee it's the hotel motel fund uh that provides support for sports authority uh for the convention center and for the visitors bureau basically to support tourism. The new Memphis Arena special revenue fund. MLG&W according to special legislation has a pilot that that produces a couple of million dollars for the sports authority in support for the FedEx Forum and that's the new Memphis Arena Fund. the 2019 sales tax referendum fund. The sales tax referendum fund is the fund that was passed to support the restoration of benefits for police and fire in terms of health care in terms of pension restoration and also for paving as well as prek. That's that's the funding source for that. And then there was an original prek special revenue fund. And that fund was established to provide support for prek education. But some of those funds were then in terms of

funding sources were modified. And then finally the unemployment fund which is an internal service fund which we're required to maintain for those employees or former employees that find themselves unemployed. Next slide please. We dropped the headings off of of this particular slide but essentially just trending through we see state taxes and total revenues. you can start to see some of the the downward trending pattern that we referred to uh with the last column and it'll show up better on these other slides. The last column is the FY27 proposed. You see that state taxes are showing 21.3 million in total revenues and the matching expense levels of materials and supplies being the 19549 and the transfer out of 1768300. Next slide please. hotel motel tax. You start to see those columns come back for us. Uh so for hotel motel tax, we're looking at um a little bit of a rebound. Of course, we know coming out of FY25 and FY26, we were still having a little bit of the hangover effect from a downturn in tourism, but you know, a lot of positive winds are moving this way. I think those of you that had a chance to attend Memphis and May festivities, Riverbeat, I think they were well attended and we're starting to see a little bit of an uptick in people coming to the city. So, we're looking at um a little bit stronger, you know, flat to 26, but well, I mean, not the 26 26 forecast, but a little bit of an uptick in proposed local taxes. And we're looking at that against pretty much static expenses, grants and subsidies and transfers out not being materially different from what we're forecasting for this year. Next slide, please. The new Memphis Arena Fund.

This new Memphis Arena Fund is what we referred to earlier. That is a special fund that supports uh FedEx Forum. Pretty much steady as it goes. This is an ordinance-based fund. And so the financing is pretty much the same year after year. A little bit of an uptick proposed for FY27. Next slide. Sales tax referendum. And I think this slide gets to some questions that we were being asked about what was happening to the 135. I think Dr. Easter Thomas, you you asked a question about that in a proposed budget book. This is the fund that funds that. And you start to see that how revenues which are local taxes are kind of flattening out there a little bit. Uh but you see a lot of expenses kind of coming in and and driving a much bigger hit to those funds than revenues generated. And that's why we've been in deficit spending for several for several years for that fund. Next slide please. the prek fund. Last year, I think we uh for this current year, rather, we did commit an additional 1.5 to prek. Uh debt funding for prek has been coming out of the sales tax referendum fund. We have returned that to a $7 million commitment for FY27, not because we don't want to support prek, but just because of the deteriorating condition of the sales tax referendum fund. No, ma'am. There was a special provision in last year's budget where on top of the 7 million, there was an I think a writer to the budget that authorized an additional 1.5 commitment to Yes, ma'am. Yes, ma'am. It was paid out.

Um earlier you me I wanted to go back and ask what the um what the weight would is for the debt service on the debt service fund. I meant to ask why you were here, but I wanted to ask I know you said that we were seeing potential savings, but because of the volatility of the economy that's diminishing. So what is the weight in processing so we won't be affected by that? Like what is it? What why does it take so long a process?

I'll let Deputy Chief Walker speak to that.

All right. So, we um we actually presented the refunding opportunity to Mayor Young uh just last week, I think. He said, "Let's move forward with it." So, we're going to get started on the transaction. It's going to take about 3 months to do the uh GEO refunding. Um we will come before council. We got to get state approval first, then we'll come before council, get council approval. So maybe about in about another month and a half or so we'll be before council moving forward the geo refunding. Um then the TDZ refunding we won't be able to call those bonds until I want to say early September late August. So we'll get started on that transaction later. We got to get state re uh approval for that also. State approval is only good for like 90 days or so. So, we get we'll work first on the GEO refunding. That's when I got about $5 million in savings. And then we'll simultaneously, but not initially. Maybe about a month later, we'll get started on the TDZ refunding. And the reason why the savings could decrease is if interest rates increase. It's just like you're refinancing your mortgage. If you got a 6% mortgage and rates are 4%, you can do, you know, get a lot of savings. But if rates are 5%, you still get some savings, but not as much as you would if you had the 4% rate.

Yes, ma'am. That is correct. You in a war. Yes, ma'am. So, I just wanted to put a pin in that part. Yes, ma'am. Thank you so much. All right. Councilwoman Dr. Easter Thomas, you're recognized. Thank you, chair. Um, chief person, I know you mentioned that the uh state revenue fund last year we committed to 8.5 for prek, but this upcoming FY27 we're committing to seven. Can you explain the reason again?

Yes, ma'am. We uh had a standing commitment of $7 million to the prek support coming out of kind of the trending and and basically the requirements that we had laid forward I believe and I don't remember exactly who but somebody brought forth during the last budget cycle an additional 1.5 and and that was for that fiscal year which is the current fiscal year we're in and so we allocated 8.5 from the sales tax referendum fund. However, we have not moved off of the 7 million. This meeting is being transcribed. We have not moved away from the 7 million um because that has been our

So, we just need an additional resolution as we did last fiscal year. Yes, ma'am. We we would have to operate.

So, if that um Okay. So, saying that the resolution is brought again um or if I bring it again because I brought it last time uh and we all voted on it unanimously. Um to add in that 1.5 million um so that we can ensure prek for the folks who need it. Um would you be able to would that take a large hit for our overall budget? Well, I mean, we would try to fund it as best we could from the sales tax referendum fund, but again, we're doing deficit spending. So, I mean, we would just we would either cover the overage out of sales tax referendum if it showed better than it's showing now

or from the general fund. So, it would be funded. Okay. I I do plan to go ahead and and bring that just to let you know now so it was no surprise. But yeah, I think we do need to um at least maintain it and what we were able to do last year because prek is definitely important. We talking about potholes, but prek is definitely important. Yes, ma'am.

I think that's it for me unless y'all have any additional question. Thank you so much, Chief Person. Any other questions? Nope. Thank you so much, Chief Person. It is now. So, there is a break here, but we're really supposed to start at four. So, we're just going to keep on moving along. Um, now going to executive. We have the seat. Oh, we're just executive then. Okay.

And thank you. Well, before everybody leaves, thank you all so much. Um, from all the other departments that were here, we really appreciate you all taking this time during budget. We appreciate you. You leaving us, Chief Davis? Good to see you. I don't know where he is. If you want to go to libraries, okay, I thought I saw libraries. So, there you go. Where? Okay. Yes. Okay. All right. Yes. Let's go ahead and do libraries. Harris. Director Harris.

Yeah. Derek Harris, we're ready. You may proceed.

Good afternoon. Okay. Thank you. Uh thank you all for having us. Uh we are looking at the FY27 budget which hopefully everyone has the library copy. We do. Okay. Um going through this starting on page two. Uh I again took office in February. Uh one of the first things that I realized was that the library system was very linear. There was a lot of um duplicate duplicate duties being performed. Um there wasn't a true structure and it did appear that there could have been some I don't want to use the word waste but there could have been a little more efficient um fiscal responsibility. So we went in and reorganized uh the entire library system uh based on three clusters. One is operations, one is public services or anything that touches the public. In the middle is all the backbone support. Um we were able to move some positions um internally. In doing so, we were able to create some space on our budget uh to do things such as raise our our part-time sal our part- timerrs from uh 20 hours, which they had been reduced to in FY25, bringing them back up to 28 hours at all branches if they weren't necessary. We also were able to add four more part-time positions uh and have a little surplus to do a couple of other things uh which worked out for us really well. Page three, I compliment has not changed. We're still at 285 positions within the library system. Uh going to page four for an overview. Uh one thing I'd like to point out to the council is that uh if you look at our personnel expenses, they're 73% of our budget. uh that may seem excessive to the normal person looking at an organization, but the library, we are people facing. We are public serviceoriented. We provide a lot

of one-on-one services. Um we have to have humans to um to enact enact those services. So that's why personnel is so top. It's so heavy. Um materials and supplies is 21% which is works for what it is that we do. Uh some of the priorities for this up incoming year uh we are implementing uh for the first time the teen tech summer camps. Uh we've partnered with code crew. I'm sorry hopefully you can hear me now. Uh we've partnered with code crew to offer a tech camp at 10 of our 18 branches uh beginning this summer. uh in the camps will center on lots of different uh digital topics such as digital content creation, uh AI programming, AI literacy, uh also basic programming, and a lot of other gaming, um app design, and a lots of other um activities that they were engaged in. Also, we're looking to expand our link 211 service. Uh as the council may know that right now we have uh four branches that is south uh south uh Gaston and also uh Orange Mound that utilize um social workers uh because we get a lot of calls in 211 from that general area uh and and also Levi I'm sorry that's the fourth one. We get a lot of calls from that corridor on people who need social work services. So, um, someone had the foresight a couple of years ago to hire three social workers within that, um, corridor. So, with our budget for next year, we'll be able to add a fourth social worker that serves those three branches plus Orange Mound as the fourth. And also, uh, with what we do, we have to remain innovative. As you are aware that I believe it's in 2021 and 2022 that the Memphis Public Library has won a national award for its innovation, being the most innovative library in the

United States. And to keep that up, we have lots of things that we have to pay for, not just technology upgrades. We also are very um very uh we look after our aesthetics. So we that's very important to us. Uh and also we have very high rising security and janitorial calls. We have had uh problems with uh after hour security recently, but I do want to thank the uh Memphis Police Department for working with us on those times that we are not there. Going on to um well, I'll just skip page five and page six. All right, going to page seven. Some of our key drivers again as I just talked about um security services roles going into FY26 and we're also looking to expand those security hours uh with our budget for next year. Uh right now our security is there libraries open at 10:00, security is there at 1:00. Um some libraries close at 6:00, some close at 8. So security is there until closing but we want to be able to extend that services throughout uh the entire day. Um, also our janitorial costs continue to rise. Um, the thing is with our janitorial costs, they're a little bit different from the normal organization in that every library branch has a high population of unhoused uh individuals who come in. Um, we welcome them. It's a safe place. We have no issue whatsoever. But, however, it does cause issues because sometimes that is the only access they will have to soap or running water. Um, so we have had things like at Central Branch to where the soap dispenser would get ripped off the wall because uh it would get taken with them or to paper towels and things would have to be replenished a lot quicker than usual. We are working with general services right now on a more permanent solution looking at a redesign of our

bathroom equipment because it is about 25 years old or so. U and it is something that we think that we'll be able to afford uh to do but that's once the architect comes back. But those are things that we do have to address. And also um even though we have some great brand new branches in Olive Branch and Raleigh and Frasier, uh Southwest Twin is about to become online and Parkway Village hopefully within the next couple of years, but the rest of the library branches are aging. Uh they are very old. Most of them built within the 60s, a couple within the 50s. So in order to keep them up uh to standard for our customers, there are a lot of repairs. HVAC alone was in six figures for us this year uh to repair that. But again, we are very thankful for general services uh for assisting us with that and coordinating those efforts. Moving on to page eight. And again, if you have any questions, uh please uh stop me. I will stop. Moving on to page eight. Uh some of our prices uh things that are above 10% on our budget. We've already talked about security uh which was quite extensive. But hopefully uh we'll be able to blackline and take care of that. Also, utilities is something that is above 10% in our budget. Just to point that out on page nine, I would like to point out uh on our performance metrics, these are metrics that we are actually very proud of. The first line is the number of customers who are accessing the assessing accessing the library. Forgive me. Uh if you notice every year since 2022 there's about a 10% gain uh in terms of people who are using the library and that's very important because 2022 is when we were winding down from COVID people were starting to come back out. So we've had a gradual increase in our numbers since then and our projection of FY27 we used about a 10% uh increase in our participants for

us to gauge how much we really needed so that we can function. Uh, also our youth programs is up about 5% uh from last year with some of the programming that I mentioned like with teen tech summer uh and there's a lot of other programs that we're doing that will hopefully get that number above the 5% increase that we had the year before. Adult programs even though from FY25 to FY26 there was not a net change there we are implementing specific programming and we are targeting adults and seniors. Uh for example, we have partnered with hopeworks to provide adult ESL and also highet GED courses uh for free uh for those who are interested. Uh we are right now starting them at four different branches. Uh the plan is to move it to 10, but we're starting at four for this summer. Uh and we are working on uh getting the other six started sometime in FY27. Also, our number of customers accessing link 211 as you see is about a 12% jump from FY25. Now, you do see there was a decline uh in FY22 to 23. 22 was very high because again that was a COVID year. Um, and just as we found out this year when we had the ice storm in January, February, lots of people used 211 to find out simply what's going on and also if they needed assistance, if they had a doctor's appointment and didn't know how to get there or if they needed police services or if they wanted to know when their road would get plowed, they would call 211. There were literally thousands of calls that came in uh within that two week span uh for 211. Uh so those numbers have grown and again with us increasing our social work services uh we expect that number to only grow and I also didn't mention that our 211 uh clerks they also are stationed within libraries as well. So you don't just have to call to get that

help uh from those social workers. They rotate in person uh to those four branches that I mentioned. Uh and finally outreach is something that we're looking to increase as well. There was a zero net change from 25 to 26, but we are increasing our outreach because we realize we have to do a better job of bringing the library and its resources to people even though we have 18 branches all over the city. There are some people within a couple of blocks of the library that have not been in it or really not aware of everything that we offer. So, uh, we are ramping up our outreach activities to not only let people know what the library does, but to actually bring services to those who need it. Page 10, I've already mentioned our expansion of the adult classes. um those specific branches uh because one of you asked during the session uh that we are starting the GED high set ESL classes uh for this summer. It will be at White Haven uh officer Jeffrey Red at Hollywood and also East Shelby. Uh so East Shelby, Hollywood, Officer Jeffrey Red and White Haven starting this summer. Uh again with the plan to continue expanding that going into FY27. uh page 11. I've pretty much mentioned everything there. Um and I think that's all. Well, we've talked about some of the risks um with our patron growth. We have to be careful that we will have about a 10% jump in our patrons every single year, which we've had since 2022. Um, we are working very very diligently on increasing our numbers with tween and teens. That's uh

kids from the ages of 9 to 18. We've talked about some of that programming. There's a lot more. Uh, if you're familiar with our cloud 901 at Central, we are trying to expand that concept uh to other branches as well to have sort of cloud 901 juniors or cloud 901 lights. We're throwing around uh different names for it, but we do want to have that experience uh for tween and teens at all the branches uh as well. Uh we're also kicking off our discover read this summer, which you know, summer reading is another word for that, but we've implemented not just having students to read books or have kids to read books. We've inter we've introduced things such as multiensory learning um to that really helps students who are behind and also those who may be autistic or have some sort of learning disability. Uh we have a team that was trained and they've been training the trainer so that every library will have a person uh who is Orton Gil Gillingham certified to teach in a multiensory manner uh to those who may have a learning disability or who are all behind. So that when we're doing these discover read sessions over the summer and we're also doing our outreach as we go into the fall, we'll have some very skilled people delivering. No, those are librarians and yeah, the librarians went through the training for that and they're training other librarians and I train a trainer model, but I call them teachers when they're there. Okay. And that is all I have for my portion of the FY27 presentation. And I'd like to open this up to any questions that you may have.

Thank you, Director Harris. In the queue, we have Chairwoman Swingen Washington, followed by Councilwoman Logan. I just want to say for the record, you have hit the ground running and I am so impressed. You're doing a great job. We appreciate you and you have our full support. Thank you. I really continue doing what you're doing. Thank you, Councilwoman Logan. Thank you, Chair. And I echo your sentiment as well. We appreciate you and for your vision. I do have a question. We want to see you continue to do well.

And I I heard you mention and I've seen the increase in the um unhoused unchelened homeless population in in our libraries. um what what's in the budget that speaks to accommodating or um and as well as um putting things in place to maintain cleanliness and um because I one time I had sent in a picture of these like they have at Whole Foods where you go and they store things in it, you know, and because I've seen people push cart carts, try to push the carts into the library or bring all of their things in library. So, we want to continue to keep it safe, you know, as well as clean and all of that, but accommodating. So, what is in the budget to accommodate that increase of traffic or visitors rather, I'm sorry.

Okay. Well, the the biggest asset that we have are the librarians themselves. They are well trained with uh the unhoused population. They do understand that sometimes you may be dealing with a little bit of mental instability, but they are all great at deescalating the situation. Uh they have great relationships with whatever security is assigned to their building. Uh so they're able to keep things uh at a very low level uh before they get out of hand and that's our biggest asset. Um, in terms of materials for that, again, there are some thing like central honestly is probably the biggest problem when it comes to unhoused and it's just simply because the building the way it was designed um it's a lot easy it's easier for unhoused to get lost like going to a bathroom and you don't know where they are or and it's not that we have to keep an eye on them but it's an easy way for things to become damaged or missing or or vandalized

uh and that thing. So again, with us with general services partnering with us to come up with a redesign of our bathrooms, again, it's something that we don't want to come to the council looking for uh extra money for. I'm a firm believer that um I I think it's something my dad told me a long time ago, you got everything you need, you just have to look for it. Um so we work within our budget to make sure that whatever improvements are made that we'll stay within that. uh so we don't come to the council asking for you know six figure increases just so that we can fix our bathrooms. Uh so we are looking to do some redesign there. Uh some of our smaller bathroom uh libraries is actually a little bit easier uh because they are smaller. You can keep eyes on what's going on. The bathroom is smaller so you don't have as many people going in at once. Um so I guess it's being cognizant is continual training our personnel the way we have making the changes where we need to. uh at places such as central using the existing budget that we have and those are the changes that we are making for FY27 at least for now.

So you're saying you don't need anything to to um accommodate the increase and the projected increase. You're good. I'm I'm saying I'll take it if you want to give it to me. But just seriously, is there anything in here or have you thought about it? um are you putting pen in the paper so that you won't come have to come in the middle of the year and say hey you know it's more than a notion and we didn't accommodate because I do see we're going to the summertime now and this is a place where you can come is cool has a lot of activity people and things like that because I I know for a fact that

I've seen a lot of um people try to bring in shopping carts and a whole bags and you So I, you know, thinking about them, thinking about the children that are there and other people, every thinking about everyone that's coming. I think there should be a sit down discussion and looking at that and if that increases, we don't want to, you know, come later and say, I need some money. So if you could think about that and come back. Yes, ma'am. All right. Thank you. Thank you. Thank you. Thank you. and I appreciate you support. Councilwoman Walker and then Councilwoman Cooper said, "Oh, okay." Okay.

Thank you. And um I concur with Madame Chair. You're doing a great job and this was a great presentation with respect to the bathroom redesign. Um can we see that before you all sign off on it? I know a lot of things are not some things do need to be changed but we have to keep other things in mind as well as the the the practical use of the bathroom. Um the bathrooms at the relatively new still new um White Haven Banquet Hall

they are not practical and they are not female friendly. And I'll I've made my point on that. And so, um, secondly, and finally, um, I know this is not that budget, but do you care to share anything, um, in regard to the upcoming Levi branch and Parkway Village branches?

Yes, absolutely. Uh, very excited about it. Um, in fact, um, I posted just this Saturday, you know, you get a timeline reminder on your Facebook page. Um, I was a member of the Uplift Westwood CDC, which I've done since 2018. And we were really worked hard to work with the city to try to get that southwest twin redeveloped. And when we did the the groundbreak and I was there, took a picture in front of the sign. It was great. So, fast forward a year later, now I'm the person who is, you know, overseeing the library project at that same site that I was at a year before. Had no idea, did not see that coming. Um, so we are very excited at the fact of u not only bringing a new library to the southwest twin site replacing Levi who has a great population of some very very dedicated patrons who come in um their their senior component alone I mean every single class they're about 30 35 strong that come into that branch. So giving them a bigger, better, more vibrant space is great. But not only that, also being able to offer the public pavilion uh that's going to be there for, you know, any community use and also having a police presence there uh in a beautiful, beautiful property that'll have a walking trails and also that is expandable for any other uh businesses or revenue making entities that the city desire to put in there. So, it's very it's awesome for the community to have this opportunity. Um, it's an influx. It's an investment in Westwood, which Westwood has not seen, uh, in decades. So, um, speaking as a person who advocates for Westwood or have, I'm I'm very excited and very thankful at that project. Uh, Parkway Village, we mentioned, uh, right now we are looking at land to to, uh, break ground for the new Parkway Village uh, branch. CIP dollars are there. They've been dedicated and we are working on securing that land uh so we can get that process started. Um right now we're

looking at some land that's on Night Arnold, not far away or Night Road, not far from uh where it is now, but it should be a nice open area that copies the model that you've been seeing with the more recent newer libraries. Thank you. I yield the floor. Councilwoman Logan, on the uh libraries that are older, I know you mentioned you have several have the wonderful new ones, but the ones that are older, uh is there a plan to do a refresh until you remodel or rebuild or what's the plan for those? Absolutely. Uh before I came on when deputy

particularly Cordo

Yes. Uh before I came online with the library system, deputy director Marzelac u led a process to where they went and assessed every single library where they are, what's needed, what needs to be changed, what needs to be refreshed. Uh and they and came up with an assignment for CIP dollars so that every year branches will be allocated so they can be refreshed. Uh right now we have Gaston Park, we have North Branch and we also have what's u Cherokee um that are about to go through a refresh. We are talking carpets. We're talking furniture, circulation desk, uh shelving, uh pretty extensive amount that is really going to change that library, the vibe and field and also how it looks. Um so yes, every single year uh there is a group of libraries that will get refreshed um to take away some of the aging. Uh some of the things that I mentioned earlier are things that you know aren't addressed with CIP dollars such as HVAC systems and plumbing and those type of things. Uh but we are working on those as they become problems.

So the ones that have HVAC I was that's what I was asking about the HVAC or heating or whatever. Are those those a different priority than the CIP?

Yes, they're a different priority. They come out of our uh general fund. Um like for example this year, you know, again we had some pretty extensive HVAC issues. Uh but we were able to handle them out of our general fund and that's the expectation. The thing is you really can't budget for them. Uh we even looked at a maintenance plan uh with Johnson Control, but it was some ridiculous amount that they wanted uh just for what was it four of our 18 branches I believe. Yeah, it was four of our 18 branches and they wanted you know little over half a million dollars uh just for a maintenance plan. So we just told them we'll just have to pay as we go on those things. So that's where we are

that part the pay as you go because they're aging and we know a lot of some of them are at that point. Do we have something baked into the budget for contingency for those that are older, especially HVAC? Yes, we and he Okay. Oh, I'm sorry, Chief.

So, um, Antonio Adams, chief operating officer, city of Memphis. So, what Director Harris was alluding to is, uh, taken out of the general fund. Some of them are taken some of the dollars were taken out of the general fund for basic maintenance of the buildings but primarily these are handled with general services. So you'll see in general services their deferred maintenance CIP project that's where we typically identify the locations and they take care of the building systems. The interior red redesign and redevelopment and refresh is handled by the divisions and you'll see that in in reflected in upcoming years divisions CIP projects. Okay.

Thank you. Thank you so much. All right. Thank you all.

Have a good one. All right, Chief Adams, we're ready for you for executive All right. Good afternoon, council members. Uh, again, I'm Antonio Adams, chief operating officer for the city of Memphis. I'm here to present the FY27 executive operating budget. Um, if we can advance uh to the first screen. So first screen will provide you a organiz organizational chart of the executive executive division as you see you have the mayor's office but then under those under the mayor you have the chief operating officer communications intergovernmental affairs chief of staff office of youth services joint office of neighborhood safety engagements it's a lot uh community affairs and then chief of development and infrastructure and you'll see the offices that fall uh under those as well.

Now, with this budget, our budget uh just kind of summarizing high level, our budget will increase $3.2 million. primarily those increases. If we can go to page five, those increases will be primarily in uh personnel dollars and that's attributed to one every budget you all see will have the proposed 2% increase in it. So ours has a proposed 2% increase but there is a shift as chief person mentioned in personnel dollars that count that are coming from the office of comprehensive planning. There is um you'll see an increase in um grants and subsidies as well and that's primarily the office of youth services. We are increasing funding there so that we meet the 3,000 uh student capacity. You'll see uh some money in creative arts and culture. You'll see some additional funding in public safety uh initiatives as well. that' be primarily in the um office of the joint office. Now with the increase so with the increase in complement or personnel expenses our complement goes from 142 to 154. That's an additional addition of 12 employees and that was reflected on page three. Now, notwithstanding that increase, that is going to be budget neutral with respect to um it being reduced out of finances

budget and then moving to executive the budget at present the direction of those activities are primarily under uh Chief Zena. So it just makes sense for those those employees to reside specifically under Chief Zena. As I mentioned before, our cost drivers are primarily the um 12 employees. This is a transfer of personnel cost, the increase in grants and subsidies that reflect primarily what the mayor promised during his budget speech, which is the increase in um youth employment from from current mount to 3,000 uh students. There is an increase in our workforce development by way of creative arts and culture. And then there is a modest increase under the public safety initiative as well. So that reflects an overall increase of $3.2 million with the majority of it being neut budget neutral because it's coming from finance. Maybe about half of that $1.5 million is coming from finance to executive. Now that's a highlevel overview of the expenditures of executive. There are some revenues that that are baked in that are offset. That's investment fees. Those those investment fees are coming to executive from finance by way of comprehensive planning. And then of course there's uh revenues that are collected and they have been normalized. At first they were pretty high with respect to MAS, but we're normalizing our donations. And so that's $780,000.

With that being said, I'll open up to questions andor I will invite um youth services, MAS, community affairs, the joint office here to just speak if you have any specific questions about those initiatives. I see those directors here. If y'all want to come forward, you all can just in case. Um uh Councilman Dr. Warren, you're recognized. Yes. Thank you. Thank you, Miss Adams. In the past, we've been funding the GVIP program out of executive. Where is that in this budget? Can you come and can you come and talk about your funding and adequacy or in adequacy thereof? So, let me

particularly how we're funding our interveners.

So, let's just kind of frame the conversation as Miss Williams began. Um the joint office is one that's combined with um the county government and city government. Specifically the predecessor was GVE. Now it is not on one piece. It is being reframed and redirected to be a lot more u one comprehensive but then a lot more effective effective in our community with regard to interveners. Miss Williams will be taking the helm of that operation. she's been running uh it in a deputy capacity, but she'll be moving forward as a director uh of that particular office and the leader of that office. So, I'll turn it over to her now to give you all more of an overview as to what her act planned activities are in FY27

and particularly funding. I I want activities and where your funding is coming from and what you're missing. Yeah. So, as of right now, um our operating budget is just under general funds. Um we do not have any grants or or any type of subsidized funding. However, we are in um talks with with um the state to try to find and identify some funding, but of course, most of that funding that was that we thought was coming was pulled. How much was that? That was $15 million. So, you're down $15 million as we start. Yes. Okay. And what is your budget right now? Um 1 point well no two. Yeah. Yeah. Yeah. 1.26. So

you have a budget of 1.26. Yes. But most of that is personnel and and operational costs that we already have. But in order to fund this, we need $15 more million. I wouldn't I wouldn't necessarily I I wouldn't necessarily say that. I mean there was there was an overall reduction at the state but our impact right now we're trying to ascertain and move forward. Consider this council members and the reason I'm asking this chief is I just want my colleagues on the council to understand that where we had state money for this we don't have state money for this. Yes sir. And in order to make it function we're going to have to figure out where we're going to get money for it. Right. Keep going. Go ahead.

So consider this. when when we walked in in 2024, this was primarily funded by ARPA ARPA and then of course we had some state subsidies as well along with ours. This is going to take a long-term ramp up approach for us to fund this operation. So we cannot replace every grant dollar that we had dollar for dollar. And um again, if we don't do that, what happens to the operations? We'll continue the operations. The mayor is the mayor is dedicated and committed to uh committing to funding and operating this. This is uh again this is the second mayor that actually has instit institutionalized the office. If we're committing to doing it, are these people going to work for half price?

No, sir. Okay. We going to have half the people working? Nope. We'll find a way. We'll find a way. I just cannot commit to you currently with the current dollar. nor can we defund other operations to move this in this in that direction. What can we do to help you with this?

Well, right now the mayor's presented you with a balanced budget and now it is of for you all to debate and maybe talk to the mayor about uh other opportunities, but right now the mayor's provided a balanced budget, one in which is committed to this operation and this effort which is cannot fund it based on the additional subsidies that came from outside of here. Okay. And we've looked there are no federal grants that are doing this.

Not necessarily. We have applied. We we do have grant opportunities in application at at this particular point. We've not been awarded those grants. So, let's not count proposed or potential money before it ever occurs. And so I think we should just have a more intelligent one-on-one conversation as to as as to how we move forward as opposed to looking at I know that people to

our senators at at US senators Blackburn and our other senator I'm blanking on his name Hagerty. I always want to call him hard Hagerty. Um, you know, I I'm wondering where are we as far as the city and talking to those two people. I know people who were the inter interveners have been in Washington meeting with them. Uh, have y'all followed up on that? And what does that look like? I know the mayor does have a cadence with our federal uh delegation and so have you have you asked the mayor?

I have not talked to the mayor. I haven't. So, I mean, I think that that's that would be appropriate to kind of talk to the mayor and get that as well to because again, as our chief executive officer, he does lead those efforts and have led those efforts. I feel very confident in what he's done and how he's had the conversations. How can we help? And that my question was, how do we help with this? Maybe you should talk to the mayor and offer your assistance. Okay. Thank you.

Thank you. I was going to say is that um penelin chief communications officer city of Memphis 125 North Maine. Um, all I was going to say is that we are currently working with those people and uh and Andrew Kippy has been working with state and federal and looking at um opportunities to increase this funding and um it's something that is daily that we're that we're working on. And this

Thank you. I just bringing this up because I was hoping Sam would be in here and we get some reporting on it so people would like want to talk about it in the public, but I think Sam left. So, uh, maybe you going get this later. All right. This is one of the things that we're constantly looking. Okay. Thank you. Um, Chairwoman Swing in Washington. Yes, ma'am. Um, even in the budget neutral status. I know that um the animal services, we were looking at getting some more vehicles and some additional assistance. Yes, ma'am. Um getting stray dogs and as well as having available staff, one or two people on the weekend when there are emergencies that occur. Where are we with that?

All right. We have Miss uh Director Hollenbach here that can kind of speak to what we will do with this budget, the current budget, how we will execute it to meet those uh additional needs and initiatives. Okay. Okay. And you've been doing a fabulous job. I want to say that.

Thank you very much. I appreciate that. Um so we have uh we have focused um in this year's budget for additional animal control officers. Um we will as of July have eight in place. We're lacking two of those positions but in the hiring process for a few more. So and then in FY27 we have we should have the additional officers needed for the field to properly address the different areas. Um, so that and the staffing there would be the, you know, the focus uh for our personnel budget for FY27. For FY27, correct? Okay.

I believe it's four or five additional officers in FY27 that we're looking at and then some other staffing that um we needed to fill. And what about vehicles? The vehicles, I think we have one uh for this year and then there's I think two or three listed for FY27. Okay. um that are needed for for us to get it properly to assist the number of officers we're bringing in. And this additional staffing will be in place for to cover the the weekends properly. Get the evenings and the weekends properly staffed. Okay. Thank you. Councilwoman Logan, followed by Councilwoman Cooper Sutton.

Thank you, Chair. Uh and I have a question for you. So this will be in place starting Janu July one the ramp up in place correct starting July one and until then are you ready for the summer um right so and and what I want to know from you and you don't have to tell us now um because I see you've baked in increase and expansion for this budget but for the next me council meeting or the next meeting or Um what are we going to do between now and July 1? Um as far as staffing with animal control,

handling the um increase of stray dogs and I call them ferocious dogs, you know, mauling kind of dogs and things like that. And the process for us accessing you all after hours, which is a lot of times when they when we see them because we at work right now, we um I'm not at the house seeing the dogs in the neighborhood or overnight. So if you could share that right that part.

So yes, we've we've been in the hiring process for several animal control officers and we've actually just released two that give gives us more hands on the weekends and then we have I believe it's three more finishing out their training that should be in place within the next month. Uh that will be additional coverage um for the weekends and the evenings. Um so I mean we need more staffing across the board. that's why we, you know, need the additional staffing for FY27. But those those hours definitely were a priority of mine coming in. Um because I saw the need as well. And that's why I was saying you don't have to tell you know tell it now, but when you come back a full

Yeah, I can break do a specific breakdown. What you actually need to cover the the those real terrible dogs.

They are a priority. I can assure you. uh those calls are a priority. So um even on the weekends we have standby officers. So it's we are able to address them but I feel like it's we need to be out daily. Um even the weekends we can't be off due to the volume of strays. So I completely agree. But my question to you was you were here so I asked that but my question was I didn't hear where the new division is baked into this budget the newest one um I think the creative entertainment pardon me no the creative the art and the creative um

okay so it would be a service center created under the chief of staff the office of chief of staff and so it just needs to be created in the budget and then we'll report up. Uh if you recall that most of this was actually funded by a grant and so now it is moving forward in its momentum and its effectiveness. So as it moves forward it will share grant funding but there will be some general funding required for this as well. And so we will we will provide you an updated we'll provide you an updated organizational chart that shows where their service center but it will be reporting under the chief of staff. Is it is it its own division?

No ma'am it's not it own division it's own service center. Yes ma'am it will be. So you say you'll update this to to reflect that ma'am. Yes ma'am. Are they included in the budget? Yes ma'am. Yes ma'am. It's it's included. There is roughly about uh $825,000 that's that's going to be added that but it's a part of the $32 million increase. Okay. I just needed to know $825 and you'll bring that back. Okay. Yes, ma'am. Thank you. Thank you, Councilwoman Cooper Sutton.

Thank you, Chair. Um I didn't hear and I don't know if I missed it or not. I know that um since the two years that I've been here, we have been really struggling with a VAT on site and we did discuss and we did talk about recruiting college students or those that were maybe on their way out. So, where are we in that process? And have we made a final decision on what the process will look like or do we have something in place already? because we know the importance of the veterinarian being on staff and that's very important and that's a major missing piece for for for us here in the city. Um, now we do have a veterinarian on staff. Now, he is part-time, but he is on the the veterinarian on record for us. Um, but we have been building up our relief veterinarians, you know, to to give us more options daily. And then we have recently contracted one of the relief veterinarians, part-time veterinarians that could potentially turn into full-time. So, prayers away. we that will come to fruition. But yes, we've been and and also uh partnering with we we're in the middle of a contract with um a staffing veterary service that could give us assistance through you know with with any additional shifts that we have the weekends and we will look to them for once we have our mobile unit in place we'll be able to use them on the weekends for our spay and neuter surgery. So this cost is baked into the budget

for our two. So this is baked into the budget. Correct. So we don't have to worry about additional funding medical I mean everything that we need. So from what I'm hearing, we have potentially two part-time vets. Is that what I'm hearing? Well, we actually have I think four veterinarians that come in and out. Um and then we have one we've signed on recently that could potentially turn into a full-time pet. So we have three right now. Correct. And one potentially fulltime. Correct. Well, I just wanted to know because we stressed that and I know that Chief Adams

and his team was making that a priority. Absolutely. Making sure that we find a veterinarian ma'am for it because it should be a top priority. So, I'm excited to hear that about that. So, and then we're moving forward. I yield. Thank you, Chairwoman.

Thank you. I wanted to All right. So, we got no other members in the queue, I don't think. So I want to going back to kind of my first point about like priorities and then the amount of funding towards them and this would not be a question for today and I probably will take you up on the offer of just maybe speaking to the mayor myself too but when I think about when we start talking about public safety and what role we play in it of course one of our primary um our primary focus is services to constituents and that's why I started off with the potholes and those things but then looking in priorities and we start talking about public safety and what works. We know that this youth services community um community services and I want to remind you all that way back when when I first got on the council we started talking about um I think it was I can't remember the name of the program 365 or something where the it there was a coordination of efforts as it pertained to nonprofits and that's really important. important because we have so many different nonprofits, so many of them overlapping in terms of services in addition to so many seeking out so many of the same funds. I said that to say that I think stabilizing that portion and the role that the city and the county plays in that is huge. So when I look at the allocation of and and when I think back if I recall and I can't remember specifically so I'mma throw this number out here is what I remember. If I'm wrong I may be wrong but I remember I think it was like $3.5 million just for them to kind of do an audit or something to come and see how the program would work. Does anybody remember that the Omaha people they were going to come and do and it was like

three million or something right? What what was the cost? Do you remember that it was going to cost us for them to come?

So, we were they were asking us for $3 million to come and audit to tell us how we could better synchronize our nonprofits. So, when I see that we've allocated $1.2 million to the department that we're dependent on to do this, that seems like not quite funding the department. Um, but I may be wrong. I mean, but I really do want to have that discussion because it's kind of like in this space, if you don't put enough money in it, you're just kind of wasting money and everybody's time. You know what I'm saying? If we're not going to properly fund it to do what it is that we're saying that we want it to do. And when I think about um for instance like director Harris and and and he's not come to me and said any issues with his budget but when I think about what's working and what's going to work those are the kind of initiatives that we need to fund. Of course that still comes after us providing the services that we need to provide. But when we look at it from a public safety lens I continue to say we focus on um police. That's good. We need police. Okay. But also, if we're serious about the priorities, the thriving communities, the the you get to that by housing. You get to that by fixing your streets, you get to that by reducing blight, you get to that by like programs with youth services, community engagement, Jones. And so, I really want us to be realistic about, and I understand we're in a tight budget. I get it. I get it. But also, if we're naming these things as priorities, we have to put the money to be able to fund these initiatives, to be able to see the results that we desire. Otherwise, we're just throwing money up in the air and we're not really solving the the the the problems that we're that we're setting out to solve.

Understood. And we received that. I do encourage the offer to speak with the mayor to understand his comprehensive uh plan and how the rest of the budgets actually meet to that end. Um I think you know one of the things that we can talk about with respect to Jones is the collaborative spirit between the county government and the city government to make ends meet. But I think there's other uh funding activities and other divisions like police that actually support this operation. And what I probably need to do is bring you a better picture of how that goes into this because again I understand that the loss of a grant especially with that type of num uh number attached to it does uh stoke fear. But the one thing that I do have confidence in is the mayor's commitment in funding and ramping this this program up. One of the things we do have to consider is there needs to be a ramp up period with respect to prioritizing and balancing the other expenditures to city uh city services. So I definitely understand your concern.

Thank you. And I would I'm even open to some discussions. I remember at one point there was this pot of money that everybody was talking about really looking in and in and and exploring some um private public um coordination there in terms of funding especially now that we have this gap. I just think it's time for us to get creative and intentional about what it is that we say that we want to see, you know, and and and I get it that we have budget restrictions and restraints, but we also are able to to be intentional and strategic. Even if it's not today, what does it look like next year? What does it look like in year 2, 3, four, and five? And how are we determining our return on investment in these different areas? Or are we just putting some money here to say, "Okay, this money is here and we're really not seeing the results of what we need because we're not adequately adequately adequately funding it." Yeah.

Any other members? Council Logan, you're recognized. And I know at one time and they were together with um you you all split and you took the piece 911 piece and there's another arm to it that's under the police but at one time weren't you all one under GV? So was all two functions but

it was all under GV right and I say that to say and I'm going go ahead and say everything I would say you can speak to it. Yeah, I know at that there's going to be a ask at the state level for um funding to support us once the federal well the federal level once the federal partners leave. So some of that money may you know is there consideration? Have y'all talked to police about some of that may be supporting this area? I didn't know how much collaboration or how much conversation you all have had regarding that because at one point you do the same thing. It's all public safety. So that could, you know, may be an option, but I know y'all used to be the under the same umbrella.

So JVIB used to operate within law enforcement and city government being a buffer for the nonprofits. When you're trying to create a relationship with community and you want to build that trust, they needed that buffer. So GVIP was that buffer so that if we needed to go out with law enforcement, we weren't having street outreach teams do that work um and still try to maintain the trust of the community. What we found is that um we still do of course with 901 piece work together as far as GBRI is concerned but when you think about what the county is doing we're we're targeting highest risk individuals for the city of Memphis intervention um the one to threeyear immediate get a return on investment find the people that are doing the things county is taking more of a preventative approach will we overlap in some ways of course because we're always going to fund the people that we see and that that come to us in need. But we also have to be strategic like what Councilwoman White is saying about we have say for Memphis 365 there's lunch and learns. We're doing capacity building so that organizations when they even bring grants to you all they understand what is being asked of them and how to fill out those applications properly and to speak about what they're doing. We're asking them to collaborate with each other. We have way too many nonprofits to give to everyone. But if we do make strategic collaborations, then henceforth we we're more strategic about our funding. And then you also have more of the the the youth leadership in this where we've hired on the on the county side. They've hired two youth leaders to work in that office as well. So we bring the youth into this space, which is something that we're wanting to ramp up. But all of those conversations are outside of what just street outreach does. And I think sometimes everyone gets caught up in the street outreach portion of what street outreach teams say, but there's an entire ecosystem with about 12 different cog wheels that need to turn to make a

difference for individuals. And it's not just street outreach. So when we say funding, yes, you want to fund street outreach. It's one of those things, but there's crisis prevention training that's needed. CPR, stop the bleed, first aid. We have individuals that sometimes are the first ones on scene before MPD and law enfor I mean uh fire. How do you make sure that they can do the thing that they need to do to keep someone alive in the meantime, right? How do we ramp up all of the pro protective trainings we need about people that are working with youth that have no training, but they're working with you? We have to be more strategic about this. And so the joint office is here from both sides looking at everyone with a with a very tight lens to say, "Hey, how do we make sure we scale you up and not just look at the one thing that everybody sees as the first thing, which is street?"

So, council members, let me make a correction and just let you know that you'll hear this in police's budget, but I was just, you know, brought up to speed on and that's my my fault. I forgot this, but there will be three and a half million dollars identified in violence reduction strategies that's coming out of the visa grant uh from police. So, you'll hear more about that when police comes to you all. But again, maybe what we could do is to to your point uh Councilwoman White to eliminate a lot of the confusion is just say, "Okay, here's what we have in our violent reduction strategies." I know that the mayor touched on this and talked about this during his budget presentation, but again, and I I I miss saying this with you all as well, but it will be an additional $3.5 million just for the violent reduction strategies, and that's coming out of police's budget.

It will be for those same initiatives.

Thank you. Um and you are doing a great job. Thank you so much. We really appreciate you. Um, Councilwoman Cooper Sun, was that yours or Yeah. Yeah. And that was it. And to concur what you said, we started a year ago and we talked about even with our grants giving money to all these different organizations and trying to combine them. Remember, we wanted to do to see because we're just it's almost like we're just spinning our wheels and to the joint um and talking to you and to see what we're doing. And I'm glad to hear that that 3.5 million will be presented to help um alleviate you know some of the finance issues that you're having especially with the opera money and the 15 million but however I think you have under under your umbrella there are different organizations am I right is 901 block one of them you know different organizations heal 901 and all those organizations are under under that umbrella am I correct back. It's

okay. All right. So, hopefully, you know, the summer is approaching us and um we just saw the news um with our teenagers and high school and graduation. And so I would just like to put out there just an idea that we know that graduation is here and we know that these parties are going to happen and we know that they're going to be going on, but maybe we can have preventive groups and organizations knowing where this is happening and maybe deter our children. Just last weekend, I wasn't here this weekend, but a child got shot at an organ at a graduation. We got to start being proactive knowing this is happening, knowing that what behavior that our children are right in right now. But if your organization know that this is happening, we get the permits every every day. We get permits and license or whatever whatever. I don't know if I don't I'm not I'm sure they're not going through the protocol for this. So I'm sure they children. I'm sure they're not. But however, if your organization is in the streets like I'm in the streets, the streets talk and you know what these things are about to happen. But if we can get our organizations and the people there in time to do intervention and maybe prohibit some of this gun violence that's going on, I'm glad there's not two or three or four kids getting killed, but just a child getting killed period is unacceptable. And so maybe you all can think about a project because summer is coming and and and and show up. Just show up and and work with the police. We just we want to save our children and we don't want aggressiveness. We just want them to know that we're there to protect them and we love them. So we got to be more proactive. I hear chairwoman.

Thank you. Um chairwoman,

you want me to Oh, I was going to respond. So, so to to that point, we did start a community mobilization project. It has been only on downtown Bill Street. They they're walking Bill Street, but also one and a half mile radius because we were having Riverbeat. And so, what I've been doing is strategically deploying them where we had the need um based on the events. So, as we ramp up, we've had conversations with leadership about where else we can deploy these these this organization, but it's only one organization and it's only a pilot for a very short time until the end of this fiscal year. So, we're making those efforts so that we can bring to you all the results of those things. Some of the things that they've been able to deescalate without police involvement, some things they've been able to keep people from getting citations, understand their rights and rules and and what they should and should not do. And also just community engagement, letting people know you're out there, you're watching, we're here, you know, from the city. We're trying to make sure that you have what you need and you understand even from traffic flow to where you can and cannot be after a certain time. Um, and youth making sure they understand curfews and all these things. So, we've started on a small scale, but just to that point, we have started those conversations

able to deter from Memphis beat and you had everybody in place. We need to we need to institute those things in our in our communities where it's happening and we need to meet our children where they are so they can understand that we are here and we love them. We don't want anything to happen to them. But we got to be more pro. We're coming into the summer. I mean, we're getting here. And so what we don't want to see is an escalation of our youth killing each other. You all know the gangs. You got the street. You already know where they are. You know what a beef is. We already know that. So, we need to be proactive and they need to know that we know that we see you and we're here to intervene and we're here to help and to get you the resources we need. You know where they are, Tama, y'all in the streets. You hear you hear the noise. So, we need to be more proactive. I know that pallet is in existence and and you know we I know we need money, but this is real time. This is for real and we don't need a lot of killing during this summer for our babies.

Absolutely. I yield again. Thank you. Thank you, chair. And I'm done. Thank you. Um it seemed like Chief Adams you wanted to say something else.

Yes ma'am. So um I did get an additional breakdown of the operational and grant related expenditures and again I can share this with you all uh verbally on the record but then most importantly I think chief person is going to provide this in document form to you all. So the joint office receives $1.2 $2 million um and that is to fund the staff of 911 peace and th those are for outreach, conflict mediation, rapid response and followup uh grant writing, data collection and coordination with the National Institute of uh criminal justice reform. Then there is a $1 million allocation from the safer grant, I mean safer communities grant and that is that supports roughly around 43 organizations delivering prevention, intervention, re-entry, youth engagement and community transformation projects. And then of course uh as I mentioned earlier uh just immediately earlier there's $3.5 million. So in in total sum you have roughly about five 5.7 maybe $6 million towards the effort itself. Um one is in general funding, two is a $1 million grant and then the $3 million is coming from the visa grants as well. So we can again I can pull that back together so that you understand the entire pie in the allocations and their intended uh efforts. But then most importantly, I just wanted to I didn't want this hour to lapse and us not talk about that.

Thank you. All right. Thank you. Um, seeing no other members in the queue, this is what I would say before uh before we Oh, who you Oh. Oh, I thought we did you. Oh, I'm sorry. Um, um, switch chairwoman swearing in Washington. I wanted to ask about um the office of youth services. Yes, ma'am. I thought that was amazing for you all to be able to go from what 15 or 1,800 students to 3,000. 1,800 to 3,000. How are you able to place that many students? Who are some of your community partners?

Yes, ma'am. So, Brian Harris, 315 South Hollywood. So, some of our community partners are large corporations such as Buckman. Uh we have FedEx. Uh you have various hospital sectors who are also business partner. Baptist UT um regional one is a partner then there's also a lot of small businesses so in essence we've taken last year we had 170 business partners now we have 450 so we've been very aggressive about recruiting being in the neighborhoods and selling them on the why they should take interns and so we had a very strong response and Mayor Young's been pushing as well so 450 partners this year how are you able to monitor those children

yes so what we do is uh through technology technology. We're introducing a new app called Mlock. So, in the past, we utilize paper. So, we've alleviate the paper process. We also have depending on how large your site is, we put an employee or a temp employee at the site to help monitor. Uh we do a ton of surveys as well through the employer, the student, and the parent to get data to be able to report back as well through the summer. Did some of your students place for the um barbecue contest this weekend? Yes, ma'am. So, we replaced Did the students cook the food or did the adults? No, the student students cook the food. Uh, they placed third place in steak out of 28 youth teams from all over the country. Yeah, them three. That's awesome. Yes, ma'am.

Congratulations. Thank you. That's awesome. Are they catering? We're looking at that. Yeah. Look, they could get us some extra money. Okay. Fish plates and such. Awesome. That is awesome.

But no, seriously, what I will say before we end, this was a great session today. Um, thank you council members for being so um engaged today. Great questions. What I will say is is that as we move forward and I I I think we're really ripe in this now. This is now our third budget season. I really do want us to start looking at, hey, what are our priorities? What are our issues? And as we look through these budget books, does the allocated dollars meet the need for the spaces that we have and what questions we need to ask to be able to determine that? and also think about what policies that we may need to present as resolutions to ensure that we are being um accountable for the dollars that are being spent for us to monitor and know how um different projects and initiatives are performing and whether or not we're getting uh what it is that we're bargaining for. And I will just end with this last little thing. And again, I think this is just a place where we just have to decide where we land on this. One thing I'll say is I'm curious to know, and you don't have to tell me now, what the county's um budget budgeted for Jones being that that's a joint office. So, I'm really curious to know what their um allocation will be this year as it pertains to that office. But even still, I think we need to fund it. But I will say this, we have to really figure out what role we want to play um in really changing the tide and the direction of this city. Um, of course, we are responsible for services. That's our responsibility. We're not necessarily responsible for nonprofits and and different types of resources and initiatives, but seeing that we have such a great need in this city and one that I haven't heard much about today, for instance, is mental health. Um, and so I really would um challenge the administration to start talking about what does that look like for us to start

lobbying for funds for a true mental health facility? What does it look like for us to start lobbying for funds for something like a boarding school for our youth to be able to be pulled out of these communities and put into a stable environment to be able to get the things that they need. And so us budgeting for today is great. is going to help us make it through the rest of this year, but it's not going to to change the direction that we're going as a city in in in total. So, does that look like new bond issuances? Does that look like tax increases? Oh my gosh, I just said the worst thing in the world. But the reality is is that we are a city that really needs to be funded. The other thing I would challenge the administration to do is to really lean on edge um the chamber and other um organizations that are supposed to be getting in new organizations to start taking trips to Silicon Valley to out there to Seattle in these places that are looking to move. We have a lot to offer here. We don't have income tax. We are a metropolis. We are here and we are open for business. And so I just think it's time for us to start being a little bit more urgent, a little bit more aggressive, and really looking towards the future um and planning in that kind of way. Like we're really serious about leaving Memphis better than we um than than it was when we got in these seats. So that's my little finishing remarks. Thank you so much for all that you all do. All of the directors um and and Chief, thank you so much. Chief Person, we really appreciate you all. um Chief Houston um and just you know I just want us to be aggressive. It's time to be aggressive. We can't maintain the status quo u right now. Steadying the ship is great but it's time for us to start inching towards a new direction.