City Council - Special Meeting

I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Roll call on Declaration of Conflicts of Interest. Council Member Abram. Here and none. Council Member Bixle. Here and none. Vice Mayor Moniz.

Not here. Council Member Phillips. Not here. And Mayor Buble.

Here and none. All right, we have a quorum. Approval of agenda as posted or amended.

So moved. Second.

Motion is second. Call the roll, please.

Council Member Abram. Yes. Council Member Bixle.

Yes.

Mayor Budweiser.

Yes. Passes on a 3-0. All right. This is public participation. It is limited to the items on the agenda, which we're going to hear a lot about now. So does anybody want to speak before we start the budget? Okay. We'll close public comment and get to it. Fiscal workshop here. GOOD MORNING, DIRECTOR MARINO.

GOOD MORNING, MAYOR AND COUNCIL MEMBERS. WE HAVE A TWO-HOUR WINDOW, BUT WE'RE GOING THROUGH A LOT OF INFORMATION. PLEASE DON'T BE AFRAID TO STOP ME AT ANY POINT IF YOU'D LIKE TO DISCUSS SOME THINGS FURTHER. THERE WILL BE SOME BREAKS IN BETWEEN THE OVERALLS JUST TO GET SOME DIRECTION AND CONVERSATION ABOUT THE OVERALL CONVERSATION. JUST KIND OF OVERALL UNDERSTANDING WHAT A WORKSHOP ONLY IN GENERAL TAKES. There's formal direction. You can give direction, but we're not really adopting anything today. So there are some topics that can be moved around, adjusted, discussed, even bring back for further discussion, but you're not formally approving anything today. The adoption of the budget is when that actually occurs. So depending on how today goes, that may be in the next council meeting, just depending on how much information we need to come back, or maybe there will be some follow-up that you'd like to see as well. So we'll go ahead and get into it. JUST OVERVIEW. SO WE GOT QUITE A FEW ITEMS, LIKE I SAID, TO GO THROUGH. WE'RE TALKING ABOUT THE GENERAL FUND, DO OUR STANDARD PRESENTATION OF FIVE-YEAR LOOKOUT, JUST KIND OF GET AN OVERCAST OF FINANCIAL FORESEE OF WHAT THE OVERALL FINANCIALS LOOK LIKE, SALES TAX, PROPOSED AUGMENTATIONS, RESERVES. WE'LL LOOK AT OTHER MAJOR FUNDS AS WELL, SUCH AS THE GENERAL FUND CAPITAL RESERVE, WHICH IS ALLOCATED SOMETIME BACK FROM OUR GENERAL FUND RESERVES. MEASURE A GENERAL, ARPA, AND THE SEWELL AND WATER FUND. THERE'S ALSO BEEN SOME REQUESTS TO DISCUSS SOME THINGS WITH THE DOWNTOWN ASSOCIATION. WE'LL GET INTO A LITTLE BIT MORE MEAT WHEN WE GET TO THAT ITEM. AND THEN ALSO THE ROSE PROGRAM. AS YOU CAN SEE, THESE ARE THE BIG FUNDS OVERALL. SO ROSE PROGRAM OBVIOUSLY A BIG TICKET ITEM THAT WE'D LIKE TO DISCUSS. SO WE'LL HAVE A FORECAST OF WHAT THAT LOOKS LIKE TOO AS WELL. SO LET'S GO AHEAD AND GET INTO IT. GENERAL FUND. So this is one of the bigger items that we go through for the general fund. We are presenting a balanced budget, revenues exceeding expenditures by just over $100,000. So thank God, again, we have gotten to a place where we've been able to balance our budget. We know that some years are healthier than others. I mean, we've talked about sales tax during our mid-year presentations, things like that, but we're happy to present a balanced budget overall today. So looking at your five-year look-out, we put some escalators in there. We have our sales pack projections that come out. We use those numbers in there, but we always put escalators at 3% on labor. We put about 5% on M&Os, operations and maintenance, just to cover the overall. The good thing about the general fund, it doesn't have a lot of capital moving in there. It's a lot more just operational costs. Just kind of put it into mind-sight. Employees, our staffing, is really about over 60% over the overall budget. So that's what makes up a lot of your overall activities. And those are really just services, right? Public safety, all the things that roll into the general fund and those activities that we get to the future. So you can look at the overall forecast. I know it's a little difficult to read, but there is a blue line in there. So your revenues, expenditures stay pretty consistent and flat overall. You do see some small growth, but you're overall showing a balanced projection, which is a good thing, again. Sales tax, again, we'll get to a little bit more meat of the numbers overall. Traditionally, you see a little more separation between the two. Again, just using those escalators that we discussed, and just the sales projections, you are seeing them kind of coming together a little bit. Again, traditionally, I've seen those yield actually pull apart. Sales tax is a moving target. We talk about it constantly through the year, and we keep updating it through the budget cycle to what are new projections that we get on a quarterly basis. So, again, happy to present an overall balanced budget. If you look through the five-year forecast, you overall see a balanced budget with a small dip in 28, 29, but you're going to come back out of the remaining years. Again, there's a lot of things that are going to impact this. New FTEs that get approved, overall cost of, let's say, fuel, like today's date, that impact your overall budget, the overall market itself, interest factors. Those all come together into these conversations. This is why I prefer a one-year adoption over two years. Some cities really do it two years. They like it. I think you're just doing it twice anyways because you have to end up updating all your information numbers. So those numbers have got to be updated and really brought current. Sales tax. So sales tax, all those charts, a little misleading in the sense of the way it's only making very small growth factors, less than 3% for the majority of the years. So you are seeing increases, but not to the substantial of the threes and the fours we've seen in the past. So that's what is a little concerning of the factor for sales tax. It's always concerning if you're, I'd like to be at least 3% to try and keep up with an inflation factor overall because you know that our labor is always going to go up. You have MOU increases potentially. Pension is always going to go up. Insurance is constantly going up and all the other factors overhead that go into that market. So you need to keep on your sales status because this is one of your greatest drivers in the general fund as far as how we fund our overall services. I'm talking fast. Don't interrupt her. Yeah, I had to breathe sometimes. I know you want me to go fast. So going into a little more information, these are the recommended augmentations that are proposed. So let's talk about the augmentation process itself. Kind of a multiple-prong approach in how we look at the whole thing. You can see the one that's currently proposed and the information is there. A lot of it that you're seeing as far as when you have A budget like ours are one-time expenditures or things that are really needed in the sense to keep operationals going forward. A good example of that is the elections. We're budgeting an additional $62,000. Well, we have another election cycle. We have to fund that process of what it all looks like. Timekeeping system, a good example of that, too, as well. Something we've been moving forward to be able to make sure we're in compliance. This is actually a great project overall, I believe, because it really gets us to where we need to be for people clocking in and doing more efficiently timekeeping overall. It's also come up in our audits as far as discussion, when they're trying to see timecards and how the overall flow works, so that'll help that process, too, as well. Another one that was actually pointed out last night was the contract with the county for FIU services. Again, Chief was able to negotiate a better rate overall. This has actually been going on as far as a discussion factor for some time. There's discussions about full FTE going into that program from the city and a larger contract overall, but Chief did a great job at actually negotiating that down and helping to save some funds with bringing the service back. Our continuum is better off. So you do see my operational stuff for the fire stations and some other stuff that are going on. Again, just some small overall items that kind of come together for the general fund. These all total up about $666,000. So you can see how these augmentations add up really quick overall. In your big packet, you're all going to see the full augmentation sheet itself. Obviously, we can't bring that all in. Let me just give you an example of what that looks like. Yeah. You should have got me touch screen. Let me blow up a little bit bigger. I really want to show his bottom line overall.

So you have different funds in here overall, but the general fund, not proposed, is $1.8 million.

So that kind of gives you the meat of where the augmentations start. So there's different ways to start the augmentation process as far as requests. You can say give me your top three, you can say give me this, you can do it in this factor, don't exceed this. My preference in the process overall is to tell directors, give me the whole thing that you need. And there's a reason for that. Yes, we know off the bat we can't fund it all, but it's also good for the information to go out to the public and to council saying, these are services that the departments believe they need. Well, we come to the overall and say, okay, what does our overall framework look like and where are we going? So I'll blow up a little larger. Well, that's too big. Let's cut it to the side a little bit. So you can see you have a lot of staffing requests in there going through the process. You see some part-time labor. But, I mean, labor obviously is always one of the things you kind of hold off on because those are continuous expenditures. When you have a budget such as ours, you do try to pull back a little bit or take in some things that we do we can pull in. There's always a number that we're working into when we come to this overall augmentation and looking at the totality of the whole thing. Obviously, again, $1.8 million is just not feasible. But it does give the information out to the public, like I said, as far as what's being requested and what they believe they need. Cities run pretty lean overall. All cities do. It's pretty traditional. We do the best we can with what we have, and we actually are happy just to be able to move forward and bring in staffing as we can. So just making these requests, again, gives a little more transparency of what potentially staffing should look like or could look like. But, again, the bottom line of the overall general fund is most of this has to get picked up, and it just can't. I mean, picking up multiple bodies year after year after year is traditional, you know, a couple bodies in the sense of the way, but you're not going to pick up five, ten. And that was a big conversation when we talked about the fire, right, of how we need to be able to pick up a certain amount of bodies and get a part of the time over that fire truck to come. So everybody's shifting and moving around is how we get things done. Again, a lot of this is staffing overall. There are some other funds in here, like IT and things of that nature. Total requests that are not proposed for the general funds are $2.3 million overall. Again, large overall number that just... Not feasible, but at least it gives the information. We go through the exercise. Council can redirect some of these proposed and non-proposed. Again, the full totality of the list is in the packet itself for the public to see if they'd like to see that. It is a lot of information, so it's hard for us to put it on these slides because even this, just blowing it up, is really difficult overall. So you can go to the meat of this overall spreadsheet. So you can see a good chunk of it's actually going to be salaries and benefits for positions that are being requested overall. Go back to the PowerPoint now. RESERVES. THIS IS ALWAYS A CONVERSATION WE LIKE TO HAVE DURING THIS PROCESS. YOU CAN SEE THE OVERALL RESERVE FOR THE GENERAL FUND IS PRETTY CLOSE TO 50% OVERALL OF WHAT OUR CURRENT ADOPTED BUDGET, PROPOSED BUDGET IS GOING TO BE FOR NEXT FISCAL YEAR. THESE RESERVES OVERALL HAVE A POLICY AROUND THEM AND CAN BE UTILIZED IN A CERTAIN FACTION, BUT THEY DO FOLLOW THAT POLICY OVERALL. Reserves are traditionally only used for, one, economic downturn, to make sure we hold on to what we've got. Two, being able to cover large expenditures that may be in the foresight, whether that's a capital project or what that may be. The policy is really structured around one-time expenditures to be able to make sure that you hold on to those reserves. So our policy dictates that we hold 22.5% overall in our policy itself to be able to hold on. And again, we're well over that at this point in time. So it's a great conversation to have and make sure that we understand the information is there. Last night you heard from the financial people, and they told you that our reserve is about $80 million or so. That's because within the financial statements, you're actually bringing in Measure A, cannabis, all those other funds, actually get rolled up into the general fund. So just the general fund itself is this number right here. Is there any questions regarding this?

ISAAC, YOU JUST MENTIONED, YOU JUST ALLUDED TO A CONVERSATION. ARE YOU, IS THIS A TIME TO HAVE THAT CONVERSATION?

YES, THIS IS OPEN DIALOGUE.

YOU KNOW, WE ARE VERY FORTUNATE TO HAVE RESERVES THAT WE DO AND WE Under your direction and leadership, we had the general reserve policy to have 22.5% and make it very clear how that's going to go. But I am concerned to see 50% there. That extra 25% is money that we've taken in that we don't have a clear goal to the public on what we're going to do with it. So I would really like to see an item come back in a general session for us to hear projects, um, hear options. Um, you know, things that come to mind is we need to buy land for another fire station at some point. Maybe we can't, you know, commit to the full build out, but some of that future planning, um, you know, I also, one of the things that we can do with a, with our reserve is to set aside some money for when our pension liability, um, balloons, because that is always a looming, you know, debt. Um, so I would really like to see more, uh, MORE ROBUST DISCUSSION SPECIFICALLY ABOUT THE SURPLUS RESERVE.

ISAAC, ROUGHLY WHAT IS IN NUMBERS, WHAT IS 25% OF THE RESERVE? HOW MUCH IS THAT?

25%?

OR 50% ACTUALLY BECAUSE SHE'S SAYING TAKE DOWN 25%.

SO THE OVERALL ADOPTIVE BUDGET IS ABOUT 67 MILLION, 68. SO HALF OF THAT, 30-SOMETHING. OKAY. MAYBE ABOUT 50% OVERALL. THANK YOU. SO WE'RE ABOUT 36. SO AGAIN, JUST KIND OF FACTOR DOWN FROM THERE. SO LET'S SAY 25% OF ABOUT 15. So, yeah. I mean, one good positive note of having this surplus in a sensible way is investments are good, right? So we are making that money work for us. Yes, we can do potentially some capital projects. We also have an unforeseen economy that you've got to deal with. So, yeah, it's part of a larger conversation we definitely would have. I just want to make sure that the public knows that that money is going to invest and we are going to return that money. So it is semi-working for us in that sense of the way, too, as well. Right? But that's for all our funds, not just the general fund, too, as well.

I mean, just in piggybacking on what she's talking about, I mean, yeah, it's nice to show that the public, the money is not just sitting in a pool doing nothing. But as a taxpayer, I like my extra money sitting in my pool doing something for me. So, I mean, we just have to keep that in mind.

Definitely.

Yeah, this will kind of lead into the pension conversation as well. So pension overall, we've had obviously growth. You're going to see growth in our pension liabilities every year. So for this fiscal year, we're budgeting $11.4 million just for our overall pension, which is an increase of 14% from the prior year at 9.9%. Interesting fact is when you go through the years and you look at the new amortization schedules, you do see it come up, but it actually drops back down. So in the future year, in 27, 28, you actually see a drop of 2.6%. The year after that, you see a spike of 9%. I don't calculate this stuff, they do. but after that you go into next year after that you have a less than one percent point nine percent overall uh less than our point six percent and then a negative three point one percent and the year after that and that's 31 32. so you see pension reform actually kicking in overall um with here within the city itself um we're about 60 percent pepra now so we're really starting to fill those overall bike and pension this thing That's still a large number, though, right? And you always expect it to go up. You don't know if PERS is going to take a loss. The good thing is they have been taking gains, you know, or at least have been benching for the last couple of years. It helps us overall. It's the program itself. It's really the parts that doesn't get more. But you have to see these numbers start to drop in the future years, and then we'll kind of see what the next years look like as we keep looking at projections and as they go forward. So, yes, pension programs work. They do help us stabilize the overall program. The best thing we can do is make sure that PERS is doing what it needs to do, making sure they're making their investments and hitting those best marks so that we can keep our numbers down and not spiking so much. You're always going to get a spike. It's always going to go up because salaries go up. Salaries go up, pension goes up, right?

Isaac, can I just get you to, can I ask you to repeat? So it's the, the, the unfunded accrued liability from last year to this year went up 14%.

Okay.

And you know, so that's the annual payment, correct? The annual payment. Yeah. And for anybody in the public who's following along and, and help me if I, if I misstate this, but that 11 million, we just have to absorb into our, this year's budget, right? That is correct. So line by line, you can see in every different department how much they have to kick in from our revenues didn't go up 14%. So, again, you know, as part of a larger conversation about the reserve balance, if we, you know, with your crystal ball is always the best predictor of what you could have done in the past, right? But, you know, having... paying down those things ahead of time or having a different mechanism, we could have used some of that 11 million to go to some of those salaries or those other projects. So I really think it's a worthwhile discussion.

to talk about how we can even that out year over year good to hear that the following year is down but then nine percent again is not uh doesn't sound good it is a substantial number yes that is correct again these numbers do have them flow and they get recalculated every year um so these are numbers we have to deal with for this current cycle and the projects that we're trying to get They're interesting numbers overall to go from that percentage and come down to a negative number and then they come back up and then to actually be almost flatlined overall from a growth factor. But again, that's just the way the pension program works. They have ramps up and downs. It's not like they just amortize the number overall. They have a crazy calculation of how the whole thing goes. They ramp up the fires and come back down. So that's why you're seeing some minor spikes in a sense of the way. So the overall system itself, again, it's more about stabilization than the pension program itself. And, yes, funding it can help bring that number down in reliability. They can go back into services as well. That is about it. SO OVERALL IN THE GENERAL FUND ITSELF, JUST KIND OF GOING A LITTLE BIT BACKWARDS, AGAIN, WE HAVE A BALANCED BUDGET OVERALL. THERE ARE SOME THINGS THAT WE DID TO MAKE SURE. WE CALLED OUT WITHIN THE STAFF REPORT THERE ARE SOME ORGANIZATIONAL CHANGES AND THINGS LIKE THAT, MORE JUST TRYING TO RESTRUCTURE A COUPLE OF DEPARTMENTS OVERALL. ONE OF THE ONES THAT I CALLED OUT WAS ENGINEERING. Engineering, we reduced three positions. These are positions that really haven't been filled for like five years. So they're currently being funded by professional services overall. So the service is not lacking, it's just not brought in-house. I think a lot of it's coming down to difficulty to fund these types of positions. Surveyors are very hard to find. But again, we're able to outsource that currently. So it was very different when they were outside the general fund, when they were in their own fund by themselves, similar to like an enterprise fund. If they didn't drive revenue from that individual body, there was no expense incurred either. Well, in the general fund, that expense has to be funded overall, whether that's by sales tax or not. So just because you don't fill the position doesn't mean you don't incur the cost overall because you have to budget for it. So this will actually eliminate that and make sure with no lack of service they're going to be overall impacted. So the general fund itself, again, happy to propose that we have a balanced overall budget.

I'd like to go back to the augmentations.

Is there any particular augmentation that this council would like to discuss? Or the methodology and the process that you'd like to get into a little bit more? Perfect. So we just talked about capital reserves. So a couple years ago, we allocated $2.2 million into a capital program. The fire department is requesting a capital project to be funded. This is the first time we're actually looking to go to that fund. It's really because of the size of the project overall. It is for Station 33. They currently have an asphalt. And it's really breaking down. They have sinkholes in it now. Obviously, you know that these fire trucks are very heavy. They rip up that asphalt. They're looking to rip that all out completely and actually do concrete across the whole back. So it'll really clean up that overall fire state in itself. and give it a better useful life. I want to say it was like 30 years, 30, 40 year useful life by going with full concrete. Within the bid that we received, they talked about some in between as far as asphalt and concrete. But again, looking at the overall useful life, it was better to go with a full concrete proposed project. So this is currently an augmentation that's in there. Again, this is the first time we've actually gone to this fund and looked at those dollars. It really comes down to the overall size of the project and as far as the cost factor overall. We did try to look at other potential funding sources, maybe ARPA. There is some dollars left there. But given the construction timeline, it will be real tight. But we'll get into ARPA in a little bit. Is there any questions regarding this project? No. So again, this is proposed, and you'll see it in the draft budget. Measure A general. Measure A general overall, we did not make any cuts in positions. We are looking to do another transfer of $2 million for both fire and police. This goes into their vehicle and equipment programs. This overall, again, was done last year. This is going into reserves to be able to get it done. The one thing I do caution in the future years, we won't be able to keep doing this forever. Right? Overall, we have an overall balanced budget in Measure A, but this is continuing to go within the reserves and we can't just keep going this way. So this actually concerns me a little bit. Tried to see if we can bring that back into the general fund, but just with the overall sales tax and the nature of expenditures, it just wasn't feasible overall. So one thing about equipment reserve programs, especially when it comes to public safety, What ends up happening is you end up having a dilapidated fleet overall, and then you end up having to go look for debt to go pick it back up and finance the program overall because the vehicle expense is more than it actually is to keep doing things. So you actually have to go to another funding source and take that on and start a different type of program just to keep up. We've been lucky to be able to build our reserves and our equipment programs and make sure we stay in hold. We've come a long way in both the fire and the police department as far as what their vehicles look like. We can attest to that with the new trucks that we've been getting for fire recently. Is there any questions regarding this transfer?

This is going to sound like a vague question, but, you know, you said that you are concerned about, you know, the trajectory of having to pull reserves into the general Measure A.

The concern is the program, not necessarily Measure A itself, but the program itself going forward.

Does that make sense? Per capital?

Per capital.

Okay. You know, like what we did. three weeks ago or whatnot for shifting some of the roads funding back into public safety. Do you feel like that is a potential viable path to slim down on the roads to bolster up the needs here?

Potentially could in the future budget, what you overall look like as part of that actual conversation, looking to bring those bodies back into the general fund at some point. And that could give it relief overall. So, again, it goes back to sales tax. Because when you're working off sales tax overall, you're not getting a large price per se unless we get another Amazon, right? So you work with that number and what you got because you look at your flow overall and how it comes out to see what you can manage through the years and how it goes. The biggest thing in measure A general, though, is bodies. So it's constantly going up. IT'S NOT LIKE SOME OF YOUR OTHER PROGRAMS WHERE IT'S PRETTY FLAT FOR EXPENDITURES OR JUST DOING ONE-TIME CAPITAL PROJECTS. IT'S FUNDING QUITE A BIT OF BODIES, JUST OVER 30 BODIES, RIGHT? SO THOSE NUMBERS GROW. THOSE SALARIES INCREASE. SO WE TRY TO MAKE SURE THAT KEEPS UP WITH YOUR SALES TAX NUMBER IN GENERAL.

OKAY, YOU'RE DONE?

NO. PATIENT.

I'M TEASING YOU.

WE'RE GOING FAST. DON'T WORRY.

YOU ARE.

Again, stop me at any time. We are proposing another augmentation. This is for the animal control site as well as the jungle control. They're actually coming up over our estimates. If you do remember, we'd actually allocated $1.2 million in additional $150 just recently. We knew this number was going to have to be requested overall. That 150 actually was a great help overall because there's other things they can do with that number too, but because these codes come in higher than they proposed originally or estimated, they're making an additional request coming from the ARPA. So let's talk about ARPA in general. We have until December 31st of this calendar year to be able to utilize these funds. Finance has developed a plan, in a sense, of the way. We will be talking to directors to see what else they can do with it, as well as council. This will take a good chunk out of it, right? There's about just over 600K. So this is a good number overall. But we also have to plan for the future to make sure nothing is going to be left on the table. SO ONE THING WE PROPOSED AND DISCUSSED IS TAKING A CAPITAL PROJECT THAT'S ALREADY BEEN FUNDED AND WE SHIP THOSE EXPENDITURES INTO ARPA TO COVER ANY EXPENDITURES THAT ARE LEFT OVER AS OF DECEMBER 31ST. A GREAT EXAMPLE WOULD BE THAT PURCHASE OF THE FIRE TRUCK. ALTHOUGH THAT CAME OUT OF THE EQUIPMENT PROGRAM, WE CAN SHIP THOSE EXPENDITURES AND RELIEVE THAT PROGRAM AND BRING IT BACK INTO ARPA TO MAKE SURE THAT WE'RE NOT LEAVING ANY DOLLARS ON THE TABLE AGAIN. So the biggest thing that's really coming out of there to make sure we compensate for is the trash stabilization, right? The stabilization program, which we did. It ends, but that number fluctuates. So we could be budgeting for a number, and we could be off slightly or over. So we just need to compensate for those overall fluctuations overall. Now, we're not going to be off a million dollars, but we'll be off. So we won't know that number because it's done off the billing cycles to know what that overall totality is going to look like. So really just coming up with a game plan. Again, we don't want to leave money on the table, but we also want to have conversations about how we can spend this money too as well.

So when you say off, are you implying over or could they be under as well?

There will be some relief overall. They will bring this number slightly up, maybe a couple hundred K at the most. But yes, there will be some fluctuation.

And then the station 33, we could use that as well because that would be about between the two that would fulfill it all?

The only concern I have for Station 33 is the timeline that they're projecting. So, yeah, it's just that it's only the 31st one. But it's still available. We can still do the same thing overall. We just have to have another game plan saying, okay, you could use ARPA. But if you come to a timeline and you're not in construction or close to being done, we've got to shift you out of there. So that's the risk in that sense of the way. So council could shift it to ARPA to relieve that difference overall and then have an understanding if we can't get that project done in a timely manner, close to December 1st, we need to shift and move. Maybe that goes back into the capital program at that time. So that can be part of the conversation. Any other questions regarding ARPA?

No, I mean, I obviously agree with you that don't leave money on the table. And, you know, with my views on the ARPA funds, it's, you know, we should be using it for those big infrastructure projects that only get more expensive over time. So if, you know, if the fire truck is the fastest way that we can get that out, then I think that that makes sense. I would like to see it used as quickly as possible so we get the full bang for it.

Yeah, given the dollar amount that's still sitting there, we obviously can't do a large overall project. So it's more about the timeline than anything else. I mean, we could start having equipment requests that are easy to purchase. One of the conversations I had with PD is how fast can you get a vehicle, right? Even those numbers, those timelines have been pushed out, so that's not the best fit overall. But, I mean, again, kind of make sure that we talk to departments to see what's out there and what we can do. I can guarantee you I can hand this money to Chris right now, and he can spend it on sidewalks. So, yes.

Just going back to the, I'll call it the parking lot behind Stage 33. You're saying that you don't think we can get that done between now and the end of the year?

With the projections I looked at as far as the capital project, it is shovel-ready. Getting it out to bid and getting it completed, it was like a nine-week project just to get it constructed overall. So it would be pretty tight. I mean, if we could – I don't want to speak for engineering, but we could get it in there and shift it here and see what it looks like overall to make sure they can hit that benchmark. I just caution them against that. They need to make sure. And I know they're pushing really hard on PD's projects, too, as well, from an ARPA perspective, to get those done in a timely manner. So it'd have to be a better conversation with them overall. Because, remember, we don't adopt this until 7-1. or we can't start that budget, so that means they can't even start until July to utilize these funding sources. So that's a little bit difficult, too, as well.

Going back to just, you know, throwing things at the wall of what these funds could be used for, aren't there some augmentations? Maybe it's in small equipment. I don't have that part right in front of me. But for new Lucas devices, right? Yeah. Or, you know, there's not been, I think, a council-wide, like, yes, we want to move to ALS, but I'm curious if there's equipment and things that we can, you know, get ready.

So a lot of the equipment that's actually being funded now for their monitors at the N.A. Church, they'll compensate for that? Is that correct? Yeah.

With our current law?

So, Chief, what about our breathing apparatuses? When are they timing out? But we wouldn't order them in advance because it starts the time on it, yeah?

Yeah.

if we wanted to go thank you if we wanted to go a little more aggressive and be one year ahead of the timeline and then we're hitting exactly that 10-year expiration excuse me 15-year expiration Life cycle, we could move it to this year. We could do that for sure.

So going back to a conversation we had about the three firefighters, I'm still a little leery that that actually covered all of their equipment too because they have to have personalized equipment. So when we put that money in, the 3% from roads, DID THAT TRULY COVER THAT OR IS THIS SOMETHING WE COULD USE FOR THEM?

ANY EQUIPMENT THAT WAS PROPOSED FOR THOSE THREE BODIES IS GOING TO BE GOBBLED UP IN THE GENERAL FUND OVERALL BUDGET OR THE EQUIPMENT PROGRAM. YOU CAN SEE HOW WE'RE COMING TOGETHER WITH SMALL PROJECTS THAT ARE KIND OF CAPITAL IN NATURE. So if you can give direction as they look at some of these projects and bring forward something to that nature that's currently not being funded.

Those flight packs actually are being funded, though, through the public safety program.

That's correct. There would be actually a total of seven units, one for each engine, one for the – one for the truck, one for our reserve, and one as a spare when the other ones need maintenance. Yeah, I forget. I have it. I can pull it up for you in just one moment.

So it might be helpful for us as a full council to see like three or four options when you bring it, just so that like, okay, this could be done in this time. So that we can make a collective agreement.

We can definitely look at the augmentations that are not currently proposed and look how we can shift some of those one-time expenditures and get that taken care of. So you see the seven cardiac monitors and seven chest compressive units, $103,000 going into the Fund 116 overall. So it is being proposed.

It's already done. Yes, I understand that. And when you bring it back, I would like, to have some analysis on, like, okay, if we can relieve the pressure in this one fund, the small equipment fund, like, what does that allow us to do? Because I appreciate that this is, it is funded in this budget, but if we can, you know, take care of it in another funding source, then what else can that get us? And, you know, small equipment, yeah, if not a big infrastructure project, because that takes too long, if small equipment, we can get it and spend it expeditiously, that would support that as well.

Great. Yeah, that'll be an easy conversation to have with the directors and see what's still sitting out there, and how we can shift some of these one-time expenditures, equipment itself, to pick up that number overall.

That's normal.

And Council Member Dixell, our current models are LifePak 15s, and the upgraded would be LifePak 35s. Oh, they're fancy.

Commodore?

Yeah.

I love it.

So going back to the presentation. Again, please stop me. I'm going too fast.

Right.

Public safety. Our public safety building? It's their HVAC, or not HVAC, but their temper control system? Yeah. Yeah, we knew that project was going to be pretty expensive overall. Again, we had some early estimates of what it looked like when we started this process, and now we're coming to fruition with those numbers that are really starting to look like. I mean, it has to be done down to a bidding environment. It is a capital project and things of that nature. Yeah. No. No, it's not. It's a well-needed project overall. They've had nothing but issues as far as the system as a totality. You have one season where the AC doesn't work and one season where the AC doesn't work. I mean, I think they can all attest to the issues they've had at that facility. So this is actually going to be a great help for them overall just to be able to do it. So it does say police, but obviously this helps fire too as well because they're in the same building. It's just PD's actually been managing the project overall. MOVING INTO THE WATER AND SEWER FUND, SO WE'RE LOOKING AT REVENUES PROJECTED AT 29.7 MILLION FOR THE SEWER FUND ITSELF AND 34.8 MILLION IN EXPENDITURES. THE MAIN THING TO TALK ABOUT WITH THIS OVERALL FUND IS WE DO HAVE A RATE CASE IN PLACE, RIGHT? SO WE DO HAVE EXPENDITING REVENUES THAT ARE COMING IN EACH YEAR. WE'RE TOWARDS THE MIDDLE OF THE OVERALL RATE CASE. But there is projected to be able to issue debt to take on some capital projects within this fund. So yes, you see that you have an upside down overall budget. But it's because during the fiscal year, we're going to have a conversation about issues and debt to take on some of these bigger projects. Again, this is the sewer fund, not the water fund overall. So it has to have nothing to do with meters. It has to do with infrastructure at the site itself. But you do see, again, an upside-down budget because that debt has been proposed to help with the overall rate case and those capital projects. So the capital projects are budgeted, but they're on hold until we can actually do the rate or bring in the debt structure to be able to get it done. So we're having those conversations of what the overall trajectory looks like for a debt issuance. As you know, we can issue debt, but we need to spend it in three years, okay? So right now we're coming together and see what can we get done and how can we get it done. Same like any other project, we've got to make the money flow with the projects itself. So you can't just throw a random number out there and say, this is what I want to get done. You have to forecast it all the way through to make sure we get our projects done in a timely manner. So again, yes, your numbers look like your revenues are less than your expenditures, but we're projecting that because we need to issue that to be able to take on some of these capital projects.

Any questions?

Water Fund. So the Water Fund itself, again, same thing, $28.9 million in revenues, 39.7 overall in expenditures. I know that's scary. I mean, a large part of this is going to be the cattle project that was just approved for issuance last night. Again, the project hasn't been funded, fully funded, but the project is in here to get it done. I will say that going into the fiscal year, we will have the reserves be able to hook this up, but we'll have conversations about what the overall fund looks like. The best way I can press this is that this was phase one. Obviously, there's other infrastructure needs to be done in the future, but those are part of future conversations on what the fund itself is doing and rate studies that go along with those overall. We haven't had a rate study completed for some time now, the Water Fund. whereas the sewer fund actually had one not too long ago. So just conversations we have in the future with what the overall enterprise fund does. What happens if you don't address these overall rate studies on every five-year cycle? You start ending up with a bigger number, which we've seen in the past, right? So it's making sure that we continue to have those overall conversations. Is there any questions regarding that?

You said that the gap is going to be filled with reserves and the debt issuance is only sewer, not for water.

Correct. There's no revenue stream as far as the rate case. They can stabilize the debt issuance. You can do a small loan program as well, let's say $5 million, $10 million, or whatever that may be. You may be able to pick that issue and stuff, but nothing bigger than that. I would say five at the most, to be honest. So it's better off just to get your rates in place and do what you really need to do because there's infrastructure needs that you need to have outside of this. This is just part of it. You have well rehabs, containers you've got to deal with, things of that nature. Any other questions? Sewer and water augmentations. So you do have quite a bit there in here. I mean, you can see that 410 is the sewer fund. 420 is your water fund. So different positions are actually being requested. Not a grand thing overall. There is a capital facilities infrastructure project. That 410, that is, again, the sewer project itself. That's the start of a larger capital project, not the whole totality of the overall project. So overall, there will be more that needs to be done, again, but we need the additional revenue from a debt issue to be able to keep that going. Is there any questions on these? So we have two more topics to go through. This one will be up for discussion overall. A request has come down from the Turlock Downtown Property Owners Association, as well as a joint project with the chambers to assist with three of their projects that they have. of the projects is basically they're requesting for us to compensate for costs for issuance of permits and things of that nature so there's the independence day parade the independence day car show and the festival and fireworks one thing i want to stress again this is not an actionary item this is up for discussion only the adoption of the budget is actually what makes this occur if the discussion is to actually look at this overall You have to identify funding sources, things of that nature. But when it comes to things like this, you have to make findings. You can't just hand money out in the sense of the way. We need to make sure that it's not a gift of public funds. So we make sure that we make findings that this is the best interest of the city and the community to be able to do things of this nature. But you can see some of these projects are pretty large overall. So we'll kind of look at the detail of what these look like and what the request is. So the first project, you can see pretty much common trend overall. Public safety is going to be one of the biggest factors of the overall request. So public or police support, just now for $9,000. You see city maintenance staff, 6,600. Traffic control rentals, that's equipment that's going to be rented. Public noticing, other fees that go along with that overall. So we'll come back to this, which is the VAL 3, and then come back for a conversation. Independent state car show, again, police support, $3,200. City maintenance staff, $2,800. This is probably the smaller of the projects that will all be requested, so you can see the miscellaneous fees that go along with it. The last one that's been requested for discussion is the festival and fireworks show. This is the bigger of the three. I mean, you can see the police support. It's 16, almost $17,000, with 18 personnel projected to be there for that time frame. So it's a large overall festival and fireworks show program itself, which needs additional support. So city maintenance staff as well, as well as, again, traffic control devices and notifications and permits and things of that nature. So at this point, I'd like to go backwards, just have an open conversation with the city, and I believe there's people here, representatives, that if you have any questions about the program or why this request is coming forward today, I'm sure they can be happy to answer any questions.

Director Romero, I have a question for you. I know that there is some historical precedent for the city covering these costs for some events in the past. Do you have Any information you can share on previous years?

I don't have the history on what's been discussed in the future as far as being budgeted in a sense of the way. So I don't really have the historical on this request. This request was brought to my attention. This is the appropriate format in which to have it and it was dialogue with council.

As the historian technically here, We've not ever done the explosives. We've always done the public safety, the volunteers, the trash pickup, things of that nature. It was usually always covered by the chamber and donors, but we're also talking about the 250th celebration, which is a once in our lifetime, right? So I'm not sure. It's not specific to that, but food for thought.

Can we go back to this question?

Can you go back to the slide that had the fireworks and what our costs were? It's all city.

It's all city staff. City staff, okay. Yeah, we're not funding fireworks or things of that nature. I'm not sure what's proposed in the program itself, but this is all city cost. So there's no other costs over and above what they'd be charged for for our city services.

Do you guys want to make a point of clarification? And bring Starbucks for us.

I would have absolutely brought you Starbucks, but I'm pretty sure just a plain black coffee. So I don't know if you're a Starbucks plain black coffee. Allie Jeffrey, on behalf of the chamber, for those who don't know. So as mentioned, you guys have always covered the parade in the car show because the car show runs concurrent with the market. So the streets are already closed and there's already stopping. Allocated to that this is a one-time offer for the festival and fireworks and we put in a request because we were asked to Because we said hey how much is it to close the road on solder quest because it would be safer overall if we could close that one road for traffic control where people are entering and exiting from the free festival to the Parking lot we've covered all other costs This is the last hurdle left is figuring out how to close that road and any perimeter security We have hired over 40 people to be inside the festival providing security. So this is a what the city feels is appropriate for outside and to be able to come in if there was an emergency. We have covered all the fire marshal costs, all the other costs, all the insurance costs, all the other things other than what the city felt was appropriate when we put in that special event request. We came back and said, is it mandatory or is it optional and to what degree? And we never really heard back. But we're hoping that you could in kind respond. part of it or all of it if it's within the means of the city to provide this free public event that the community has been asking for back for decades because it's the 250th year we are not making a reoccurring request we're making a one-time request for a one-time festival because this year we really didn't have estimates to be able to say, hey, if we ever decided to do this again, we'll be able to fundraise differently or do it differently. This expense, like they said, just covers the traffic control setup, the officers that the police department and fire department feel are appropriate to be there, and to close the perimeter outside of the fairgrounds. We have met all the requirements for inside the fairgrounds, for the state fire marshal, for all the other things.

Did I miss anything there, Travis? I'm going to jump off and just

YOU'RE LOOKING SNAZZY.

TRAVIS REGALO, EXECUTIVE DIRECTOR OF THE TDPOA. I JUST WANTED TO ACTUALLY ADDRESS IT ON 4TH OF JULY, BUT I DO ACTUALLY WANT TO TALK ABOUT CHRISTMAS. WE HAVE A BEAUTIFUL CHRISTMAS DISPLAY THAT WE HAVE IN TURTLE LOCK. I'VE ALWAYS BEEN PROUD OF OUR DISPLAY. I SAID WE LEAD IT. BUT AS I'M SURE CITY STAFF CAN ATTEST THAT THE AMOUNT OF STAFF AND YOU GUYS GOING THROUGH THE BUDGET, YOU SEE HOW EXPENSIVE IT IS TO DO STAFFING HOURS TO RUN THESE ORGANIZATIONS IN THE CITIES AND ESPECIALLY EVENTS LIKE THIS. THIS IS ONE OF THE RARE OPPORTUNITIES WHERE YOU GUYS GET A PARTNER WITH ORGANIZATIONS IN THE COMMUNITY. IT'S TAKING THAT STAFFING TIME OFF, YOU KNOW, THAT PRESSURE OFF OF YOUR STAFF, AND WE GET A LITTLE BIT MORE BANG FOR OUR BUCK. I WOULD BET TO SAY THAT THE CHRISTMAS EVENT IS PROBABLY IN THE HALF A MILLION DOLLAR RANGE BY THE TIME EVERYTHING IS SAID AND DONE. I COULD BE WAY OFF, BUT I'M SURE THERE'S EXPERTS HERE THAT CAN TELL YOU. This one right here in total cost, I think we raised, I think our expenses are about, on our bare minimum side is about $80,000 plus this. So we're in the $120,000 range to do three events, not just one, three events. WITH, YEAH, THAT'S NOT INCLUDING THE STAFF EXPENSE BECAUSE WE ABSORB IT INTO OUR ORGANIZATIONS. SO I DO THINK IT'S A WIN-WIN THERE. I WANT TO KIND OF POINT THAT OUT THAT IT IS THINGS. AND IF YOU GUYS THROUGHOUT THE YEAR, YOU KNOW, TALK TO YOUR CONSTITUENTS AND, YOU KNOW, WE RAN INTO THIS ISSUE WHEN WE WERE GOING THROUGH SPONSORSHIPS, WHAT THEY ARE EXPECTING THAT THE CITY ALREADY PROVIDES, IT'S ONE OF THOSE THINGS THAT COMES UP, YOU KNOW, HEY, I DON'T REALLY WANT TO SPONSOR THIS BECAUSE I FEEL LIKE IT'S SOMETHING THE CITY SHOULD PROVIDE. And that's not what I'm trying to get at here or there. I'm just saying it's the community coming together to make sure that it does happen. I'd love to say that, well, I am going to say that this is the 250th year anniversary of America. And that's why we are trying to do the above and beyond. We raised the money to do that in. And like Ali said, this is the last hurdle that we just want to make sure that we have a safe and fun festival that really showcases 250 years of America. um what i was going to lead into that is i'd love to say that this is the only time that i'd ask for this type of event um i just don't want to promise that because as the people come to us we just try to make things happen for the community and bring it forth to you obviously we'd love to be able to fundraise and do all those things in the future and that's that's going forward into the future um but i do think that this is a win-win situation um and we had came forward with the city to negotiate these costs and bring them down to as least expensive as we can, being that we shortened our parade route for the Friday, July 3rd thing. So we're not going to be ending into the fairgrounds. We'll be ending at Broadway, which was a huge expense. That was crossing Olive. So we sat with city staff and diligently went through the items to see how we can bring down the budget and still have a wonderful event. So I just want to point that out.

Sure, Travis. Can you clarify? I'm sure it's on the slides, but I didn't catch it. What are the dates of the events? Are any of them happening concurrently, or are they all three separate days and separate timespan?

Yes. So I want to go ahead. Historically, since COVID, we've gone the weekend before 4th of July, just kind of help with budget restraints and all those other things that go along with it and allowing people to enjoy the holiday with their family and the community and their own plans. We have been hearing from the service groups and a lot of the other, you know, as we get feedback, that they wanted it on the actual holiday. So this year being 250 years, we put it on the actual holiday. It worked out perfectly because it was a Friday and a Saturday. And the other thing that we did was so Friday, July 3rd at 630 will be the parade kickoff. And then we'll do the parade. And then the chamber is hosting a festival at the fairgrounds. The fireworks show, it kind of depends on sunset. So, you know, we're telling people 9 o'clock, but realistically it's probably going to be about 930 because, you know, it's got to be dark enough to light off the fireworks. But the festival will be open for entertainments and families to enjoy themselves. And then Saturday will be the car show and market. We have a huge market on the 4th of July historically, and it's wonderful, beautiful downtown. Come enjoy it. We did also, because I'm going to answer this question because I know when it went on to Turlock Journal, there was a lot of feedback of why is it on July 3rd and not the 4th? And we are trying to make everybody happy, but it is also important to remember that Friday is the kickoff for the weekend. We still want families to be able to go and celebrate and go on the 4th and be with whatever their other alternatives may be. And we are partnering with a lot of service groups in the city of Turlock to make this event happen. I think almost all of the major ones are sponsoring the event because they want to see it happen. But they sell fireworks to the community. And so we don't want to hinder those legal fireworks sales that do so much more throughout the year for those service clubs. So this is a win-win. The community gets a fireworks show. We get to come together. We get those nice, beautiful bangs and a big festival in the fairgrounds. And people still get to go home on Saturday and have their block parties and their families come together to support the local service clubs and have a reason to buy actual fireworks.

So we thought it was a win-win all the way around. So, Travis, the fair opens pretty close to that too, so you guys are giving them a little leeway, I'm guessing?

Yes, so thank you for bringing that up too because it is, and I think that's part of the budget constraints here because the staffing has to go right into the fair. For those who come, parking is $10 at the fair, and I believe that's what you're leading into. is parking is $10 in the west parking lot. That's where the soccer fields are at the fairgrounds. There are routes. It is free entry into the festival. So if you can walk in or park and park and ride or any of those, it is free entry into the festival. But the fairgrounds is offering four $4 off coupons for the fair admittance. So essentially if you pay that $10, you're going to get $16 back if you go to the fair. So you'll make money. And the reason is because they have to staff the parking area Lions Club comes out and does the parking, so they staff the parking for the festival, and then you get your money back, and it's a win-win for everybody. Again, we have met with all service groups to try to make this a community event, and it seems like Allie has some questions. I'm going to ask.

We're like a tandem.

I don't know if you guys know this, but every meeting we've taken together since this very first started, so we work in tandem the whole time. One of the things we heard loud and clear from the police department was, please don't be concurrent. So his parade starts at 630. Our concert doesn't start until 7.30 with the theory that if you're going to skip one or the other, you'll be okay. So you shouldn't have a problem. Their parade's not very long. 7.30, the concert starts. It goes until 9 or 9.30 when the fireworks go off. We are not doing anything after the fireworks. We're encouraging people to leave before 10 because we want the neighborhood to be quiet again if we can at all possibly. But we're saying 1030 just to be safe because people are people and it takes a while to load up your kids and your blankets. It's concert rules so they can't bring outside stuff in so it should be pretty quick to get them back out. And then we have a buffer there hopefully so that everybody can end before it goes into holiday pay. That was our goal too. Part of the reason we're on the 3rd. is it reduces the number of holiday pay hours for the police department, for all the different people, because the fourth is the actual holiday pay day for the most part. And so that, hopefully, we can be completely done with the bulk of our activities before we hit double-time holiday pay, or triple-time, or whatever the cities are. I don't know. All of our chamber staff and all of the downtown staff and boards agreed to come in and work on the holiday days for free. Or not for free. Our staff get paid. But our volunteer teams all agreed to come in on that holiday weekend to give the community what it asked for without having to do concurrent at the same time events. Also, because I don't think I covered it a second ago, we brought in 35 paid security professionals to be inside the fairgrounds, which is more than they used at the Cat Country listener appreciation concerts, so it'll be extra safe in addition to whatever city staffing feels is appropriate.

Any other questions that we might... Friday night. That actually just reminds me of one last thing, just to talk about how committed we are. I just want to touch a quick story on we had secured a contract for fireworks that we knew was going to be 250 years of America. We wanted to celebrate Interlock. And in March, we had that company tell us that they lost an operator and they were not going to be able to do the show. And we were on, it was just one of those hurdles where it was like, oh, no. So I literally called every firework company in America, seeing what it would cost to get something to happen. And everyone was booked out, as you can tell, for that 4th of July weekend. They were saying, if you do it the weekend before, we can do something. But that's not what we wanted to do, what we had advertised. And so in order to make this happen, I actually had to sign up myself and five other people to go through these classes to get our certifications for the Pyro Technicians Company. We worked something out with the Pyro Company, Pyro Spectacular, which is one of America's largest companies. And they're going to provide, they have somebody who is coming out of retirement to do this show, who's still active in the shows, but as far as being an operator. And our trained staff, because we've been doing firework shows I mean, at least two or three a week to get up to the do two years of training in six months. We'll be helping them out to do it. So we're committed to making sure that this happens. So I just wanted to state that, you know, the community is coming together to make sure this happens. We'd love the city to help us reach that last jump, that last get some turnouts from the chief.

All right.

Um, I director Marina, what funds are you proposing would on this, this overall project or program, whatever you want to shepherd, probably TOT fund.

Um, it's the best fit, you know, in terms of money is spent to help with overall programs and special events. We have our program and that's basically where those numbers, those come from too, as well. So it kind of fits with an overall model. Um, the budget itself can take this kind of impact overall. I don't know where council wants to go with this. I mean, one thing to stress is that people like to call these waivers. There's not waivers. There's a direct cost impact. There's a lot of bodies that go along with that, so we do have to budget accordingly for those. These are estimates, too, as well. So, yeah.

Is there any other questions?

I just want to maybe ask, and maybe there's a way to put it in there for tracking purposes in the future. You know, I'm interested in, like, how Turlock can recoup their funds to make these, you know, we want to be a destination city and not just a commuter city. And a way that we do these events and making sure that when people come to the Valley for the 4th of July to visit their families, that they're not going to spend their money in Modesto or stay in Modesto or stay in Merced or Atwater or go to these other shows, but that they stay in Turlock at the hotels and that when they go to these shows, they're spending gas monies and they're staying the weekend here and they're going out and eating locally in Turlock and not these other cities. So I would wonder, is there a way to track that? I know that they have ways to estimate the incomes of doing these, but is there a way to actually maybe – track that to take a guess of you know if we invest these dollars in these type of events moving forward you know do they pay themselves off can they pay themselves is there a way to come to the table to make sure that we're you know working with the community on our end to make sure that they are paying for themselves and they're an investment and not just you know an expense

Yes, there are services you can hire to do this fiscal impact and what these programs look like and what the returns are. It's kind of difficult to narrow it really down. What you look at is your sales tax numbers for that period in time and see what came out and compare that to what you've done historically to see what any increases are. Those are assumptions, too, as well, because it's got everything in the kitchen sink in there. It's not just all the restaurants. It's just not all this. It's not all that. You've got to really pull those numbers apart a little bit to get to that data. Probably one of the bigger ones to look at is really going to be your TOT, right? Your jump in TOTs will drive what that looks like, too, as well.

Of course. We did ask our hotels to track with a code so we can see if people are staying. Because I think it's probably local families going. But just in case it's not, we would like to know for the future. We did ask them to track.

We're trying. Are you getting public comment?

Yeah. I would just like to say I'm really appreciative of you guys being here and all the work that you've done on this. Having grown up here and remembering the fireworks, I know that when that period of time that they've been gone, that's been a thing that people really want to have regularly. Personally, before this gets approved in the budget, I would like to know what supplemental costs we've what costs we've incurred for these types of events. I understand that this is three events, this is a really big event, but, you know, just to sort of have that paper trail so when, you know, if this is something that is going to continue that we kind of know where the costs are going. But I agree that TOT has, the Tourism Fund has ample reserves to take this on for this year. And, you know, I think that this is, These are good events. You do great partnership with all the different organizations, and I think the city should be a partner in this.

Moving on. We can't vote, so.

That's correct.

Thank you.

So, again, we'll bring this back for adoption and have further conversations on it. But, again, today, just conversation, direction in some sense of the way, but we're not formally approving anything today.

Okay? Okay.

NOT FOR THE FUN STUFF. ROADS PROGRAM. SO TRADITIONALLY WHAT WE DO IS OUR FIVE-YEAR LOOKOUT FOR THE ROADS PROGRAM AND HOW THESE REVENUE STREAMS AND EVERYTHING COME TOGETHER. SO WITHIN THE BUDGET PROPOSED FOR FISCAL YEAR 26-27, WE HAVE $2.9 MILLION GOING TO DESIGN WORK, 37.6 GOING TO CONSTRUCTION, AND 5.8 GOING TO CONSTRUCTION MANAGEMENT, WHICH IS A TOTAL OF $46.4 MILLION. We're using multiple funding sources outside of what we've done in the past. A large part of this overall jump is really going to be from the gear road. Gear road's going to be a major project overall for us to take on, and it does come to fruition next fiscal year to start actually chewing up. I think it actually has some costs already going through to this fiscal year, too, as well. SO MEASURE A ROADS PROGRAM IS PICKING UP A GOOD PIECE OF IT OVERALL. THE BOND PROCEEDS IS WHERE WE REALLY NEED TO SPEND THESE MONEYS DOWN FOR THIS FISCAL YEAR. MEASURE L IS GOING TO BE A COMPONENT OVERALL, WHICH IS TRADITIONAL. WE ARE LOOKING, THERE IS SOME SIGNALIZATION ON GEAR ROAD 2 AS WELL. SO WE'RE ACTUALLY LOOKING, IF YOU REMEMBER, MEASURE A HAS DIFFERENT COMPONENTS. PART OF IT IS FOR STREETS, PART OF IT IS FOR TRAFFIC MANAGEMENT, PART OF IT IS FOR PROTECTION TRAILS, THINGS OF THAT NATURE. WE'RE ACTUALLY PULLING INTO TWO COMPONENTS AND PULLING IN THE SIGNALIZATION USING THAT FUNDING SOURCE FOR MEASURE L. SB 1 is actually your first time for this fiscal year to bring into the fold. We're using it for the maintenance program overall. We budget at least $1.5 million or close to that for slurry seals or just crack seals to make sure that we have an overall robust program just for maintenance as well. Because you can't just reconstruct everything. You have to make sure that you keep up with your maintenance overall. There is some grant funding coming in, too. That's all going to Gear Road, though. okay and we are going to have a conversation about new debt issuance we are overall on track of what our projections will look like in the future but you can see from this chart we will need to do another issuance next fiscal year proposing around 40 million dollars overall to help us carry through some of these projects um the way we structure this overall program we're going hard heavy and fast and getting a lot really done fast which is a great thing but you can't run that hard and keep issuing debt over and over and over again The overall theme is to get some stuff done as soon as you can because, one, you save money. Cost goes up. So the more you can get it out, the more you can get it done. It's not that simplistic. Please don't make me think it is because getting qualified contractors and professionals to be able to do this kind of work gets more difficult, you know, as the work gets bigger overall. Just to kind of fit into the magnitude of what our project's like, on average, $8 to $10 million. That's just the construction part. You throw another 20% on top of that for design and construction management. You can see how these numbers start to grow and get big. It does help us looking for continuing to go through grants and things of that nature, but it is projected that we'll need another issuance this fiscal year. So if you're looking at the overall chart, you do see how the formulas all work out as far as reserves and the debt issuance. Proceeds is yellow, I guess we call it. Overall, it's a new issue. It's around $40 million overall to be able to get us up. But then you start seeing us start to taper down from the program and how it looks, potentially looking at the third tranche of issuance. This has always been the conversation about how many issuance we're going to do and what it all looks like. Again, it's me and Fred sitting down and saying, okay, what's what and where's it all coming to fruition? So we're still training on track as far as what to propose. We've been running this program for quite a while now. So you're starting to see the tail end of it, but we still have quite a few years left of overall what this is going to look like. Original projections, we're looking at about $30 million of actual construction and design work and all that every year. So you are seeing a spike, but again, that's because of Gear Road. It's a big, major overall project, and it's going to shoot those proceeds that we currently have. But to continue forward with future projects, we'll need to look at that issuance for next fiscal year.

Any questions?

Question. Um, the staff report says that, you know, the, the, the trunk, the tranches of bond proceeds that we have, you expect them to be expended in, you know, this first calendar year, right? Um, And I'm aware that there's some, like, technical, financial thing, arbitrage, right?

Yep, that's correct.

Will we meet those markers? We will.

Okay. Yeah. So the main thing I suggest to Fred is we need to get these proceeds taken care of, or at least to a small amount, so that we can do another issuance. You don't want to be sitting on $5 million, $10 million, or whatever that number is, and then going to look more debt. It doesn't tell a very good story overall if you can't spend the money. So we've had that conversation about making sure we go through these proceeds to make sure we get it done. We have quite a bit budgeted for this fiscal year. It's really just shifted and moving into next fiscal year overall, but they will get spent, and they need to get spent within that three-year marker so we don't have overtrage. And just to explain overtrage, When you issue debt, you're not supposed to make more interest on that money that you currently actually pay. There are factors where you can hold on to that money, and some of them are basically spending within an appropriate period of time, so you're not holding it. Basically, what happens in the future or in the past is people would issue debt, cities would use it as a revenue stream, hold on to the interest, and then pay that back down, but they also got themselves in trouble, right, because the market would drop or whatever it may be, so it actually backfired on them, and that's where arbitrage came into play, and they put in new laws in place.

Any other questions?

Again, we're going to have future conversations, especially when we start coming up to the instruments. Fred's always doing his presentations annually, so we'll talk about a little more depth into the projects themselves and what they overall look like.

No. Eminent domain. Show all that money.

He just tells me the numbers. Fred, we're very interested in how we kind of work this project together. It's always shifting and moving. Every week we're having conversations because something gets slowed down for whatever reason, whatever that may be, and something else has to take its place. right here wrote great conversation as far as it's all in phases and then how the phases are gonna shift and move to as well now so it's just really managing to have a good conversation with the departments and Fred's to make sure that we stay on track fiscally and from a project perspective That concludes my presentation.

I got done in a little over an hour.

So I just kind of fit it over the magnitude of the overall budget itself. Obviously, we're not looking at everything, right? We have a total of about 76 funds now in play. Some of these come from special revenues that are going to be special projects, so we don't really go to really more depth than that because I would be here for three hours, for sure, easy. We've done that before to some degree and a lot of information, it really just, it starts getting lost in translation when you start talking about so much information because you're constantly just driving through it trying to get through the whole thing and answer questions and things of that nature. So we try to focus on the major funds, specifically the general fund and the enterprise funds as well to make sure that you understand what their health programs look like and what they're going to be doing to the future. Any questions?

Nadine didn't get a talk.

She just liked being on camera.

I have a comment at this point. Thank you to the staff for making this public forum to have the time to really talk about this because Um, you know, I think we did something like this three years ago, but it was in the middle of a council meeting and, you know, it's, it's choppy when we're trying to deal with a lot of different topics all at once. Um, so thank you for that. I also just wanted to kind of put in a plug for the budget process and communicating that with our public, um, was one of the things that was pointed out in our communication strategic plan. And so I would just like to request that we take this opportunity in this budget cycle to, you know, I think a one pager is probably too much too short, but you know, we, we have all this great information out there for the public and it's, even though when we try to really narrow it down, it's still a lot. And if you don't know what these funds are and you don't know what these revenues are, you need a lot of background to understand how all of this is working. So I would like to see a condensed Reader's Digest thing that goes out to the public to start the ball rolling of the communication that we provide. And please not just on the website. Because I know that's on the website too.

So you're thinking like each of the departments' social media maybe?

Whatever channels that we have. And I'm hoping that with our new website we'll eventually get newsletter blasts and things like that. But let's start the tradition of that, this budget cycle.

I do say that we started posting social media information that the workshop was coming, not really the meat of overall the workshop itself, but we even got that out faster than we even put the information out to the public just to make sure, hey, it's coming. It's coming. Be aware of it. So definitely we can take that into consideration. I mean, the budget process itself is always evolving, right? So this feedback is already helpful for me as well. So thank you. Is it a living document? It's a living document. Thank you. Mr. Hampton's words. Yep, because at mid-year they try to change it.

All right. Thank you all. I appreciate everybody, and we will have a full dialogue when we have the next meeting. Is that right? The next meeting. All right, which is the 9th of June? Does that sound right? Sounds right. Yes. All right. We'll see you then. We are in adjournment. Thank you.