[1. CALL TO ORDER]
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ALRIGHT, IF WE'LL GET EVERYONE IN THEIR SEATS, WE'LL GO AHEAD AND GET STARTED.BEFORE WE PROCEED, I REQUEST THE INTERPRETER TAKE A MOMENT TO EXPLAIN THE CITY'S INTERPRETATION SERVICES.
WE DO HAVE INTER INTERPRETATION.
THAT WILL BE OFFERED FOR THIS, UH, UH, SPECIAL CITY COUNCIL MEETING.
AND AGAIN, THIS, UH, ANNOUNCEMENT IS FOR OUR SPANISH SPEAKERS.
UH, JUST AS A REMINDER, IF WE COULD SILENCE ALL CELL PHONES OR ANY OTHER DEVICES IN THE CHAMBER, WOULD YOU MIND ALSO, I'M THINKING ABOUT IT.
WITH THAT, I'D LIKE TO CALL THE MEETING TO ORDER A LIVE WEBCAST OF THE CITY MAY BE VIEWED ON THE CITY'S WEBSITE.
AND IF YOU'RE WATCHING VIA, UH, ZOOM, THE SPANISH VERSION OF THE MEETING, INTERPRETER INSTRUCTIONS WILL APPEAR IN THE CHAT BOX AT THE BOTTOM OF YOUR SCREEN.
FOR THOSE WHO PREFER TO SIT IN THE CHAMBER, HEADSETS ARE AVAILABLE TO PROVIDE LIVE SPANISH TRANSLATION, PLEASE SEE TO THE DEPUTY CLERK, CITY CLERK, UH, TO CHECK OUT A HEADSET.
AND THE NOTICE AGENDA AND INFORMATION IS ON THE CITY, UH, WEBSITE.
INFORM MEMBERS OF THE PUBLIC THAT THEY MAY SUBMIT A GENERAL, UH, PUBLIC COMMENT.
AND IN THIS CASE, IT'S A SPECIFIC AGENDA COMMENT.
IT'S ONLY TO WHAT IS ON THE AGENDA TODAY, SINCE IT'S A SPECIAL MEETING IN A NUMBER OF WAYS.
EITHER, UH, IN THE COUNCIL CHAMBER BY SUBMITTING ONE OF THESE SLIPS OR BY PRE-REGISTERING, UH, ON THE CITY'S WEBSITE.
NO LATER THAN TWO HOURS BEFORE THE MEETING FOR ZOOM, OR EMAILING NO LATER THAN FOUR HOURS, UH, BEFORE THE, UH, MEETING.
AND ALL WRITTEN COMMENTS RECEIVED ARE DISTRIBUTED TO THE CITY COUNCIL PRIOR TO THE MEETING AND PUBLISHED ON THE CITY'S WEBSITE IF RECEIVED BY THE DEADLINE.
WITH THAT, CAN WE HAVE ROLL CALL PLEASE? COUNCIL MEMBER MOLINA PRESENT.
MAYOR MORRISON, UH, PRESENT AND VICE MAYOR BUSH IS ABSENT.
ALRIGHT, WITH THAT, IF WE COULD PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE.
RODRIGUEZ, I THINK, I THINK IT'S YOUR TURN.
YOU CAN READY BEGIN ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH STANDS? STANDS.
ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
[5.1 Fiscal Year 2025-2026 Budget Workshop (Part 1 of 2)]
AT THIS POINT WE WILL BE GOING TO, UH, 5.1, THE, UH, STAFF REPORT.WE'RE GONNA HAVE THE STAFF REPORT FIRST, AND THEN WE WILL HAVE PUBLIC COMMENTS.
'CAUSE THE PUBLIC COMMENTS HAVE TO BE TO THAT AGENDA ITEM.
UM, WITH THAT, WHO'S GONNA LEAD US OFF? GO FOR IT.
WELL, UM, WE'RE HERE FOR THE FIRST OF WHAT MIGHT END UP BEING A COUPLE OF BUDGET MEETINGS TONIGHT.
THE, UH, MAIN PURPOSE OF THIS IS A BRIEFING.
IT'S NOT THE DEEP DIVE WHERE YOU WOULD NORMALLY HAVE THE BINDER, AND WE GET IN, YOU KNOW, WE HAVE A LOT OF BACKUP INFORMATION.
UH, WE DO HAVE A LOT OF INFORMATION TO COVER, UH, TONIGHT.
AND, UM, I THINK THE WAY I WOULD CHARACTERIZE IT IS AS WE GO THROUGH IT, UH, FEEL FREE TO ASK QUESTIONS ON SOME OF THE DETAIL.
UM, TOWARDS THE END OF THE PRESENTATION, WE HAVE AN AREA WHERE WE'RE TALKING ABOUT, UM, BOTH REVENUE IDEAS AND EXPENDITURE ITEMS WHERE, UH, WE'RE ALSO TRYING TO SOLICIT MORE IDEAS AND FEEDBACK FROM THE COUNCIL.
SO THAT WOULD BE TOWARDS THE, THE END OF THE PRESENTATION.
UM, I ALWAYS LIKE TO, IN MY PAST WHEN WE'VE HAD BUDGET MEETINGS, I LIKE TO START OFF WITH, UM, JUST SO PEOPLE GET A MAGNITUDE OF, OF WHAT WE'RE TALKING ABOUT, IS, UM, WE'RE A MUNICIPAL CORPORATION, AND I THINK, I DON'T KNOW WHAT THE EXACT NUMBER IS NOW, BUT SOMEWHERE AROUND 642 OTHERS ARE IN CALIFORNIA.
UM, ALL FUNCTION RELATIVELY PRETTY MUCH THE SAME, UH, PROVIDING SERVICES, UH, TO THEIR COMMUNITIES IN, IN OUR SITUATION.
UM, IF YOU LOOK AT THE, THEY CHANGED THE NAME, I THINK IT'S
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A ER OR SOMETHING LIKE THAT.IT USED TO BE CALLED A CER OUR FINANCIAL STATEMENT.
UM, YOU KNOW, WE'RE FOUR, UH, HUNDRED MILLION IN ASSETS.
THAT'S LOOKING AT IT LIKE A MUNICIPAL GOVERNMENT.
IF YOU'RE LOOKING AT IT LIKE A BUSINESS, WE'RE PROBABLY CLOSER TO A BILLION IN VALUE OF, IF YOU CAN USE IT LIKE A BUSINESS.
I WANT, I WANT THAT TO RESONATE WITH YOU BECAUSE THAT IS SOME OF THE THINGS THAT WE'RE GONNA TALK TO YOU ABOUT LATER, IS MOVING US FROM THE TYPICAL MUNICIPAL CORPORATION AND, UH, THOUGHT PROCESS AND MORE IN A BUSINESS THOUGHT PROCESS, ESPECIALLY IN THE USE OF OUR OWN PROPERTY.
UM, AND I THINK THAT'S GONNA BE IMPERATIVE TO HOW WE, UH, RAISE REVENUES AND MANAGE CITY, UH, FUNDS AND ALSO SERVICES IN THE FUTURE.
UM, AND SO THAT, I'D LIKE TO START OFF WITH THAT.
AND THEN ON TOP OF THAT, UM, WE BASICALLY HAVE $151 MILLION IN EXPENDITURES THAT WE MANAGE TOTAL ALL FUNDS.
AND WE'RE DEALING WITH 142 MILLION IN REVENUES TOTAL ALL FUNDS.
THAT'S, THAT'S A SIGNIFICANT ENTERPRISE.
UM, IT'S NOT MATCHED BY ANYBODY IN OUR JURISDICTION.
SO WE'RE THE LARGEST BUSINESS ENTERPRISE, IF YOU THINK OF IT THAT WAY, IN THIS, IN OUR OWN JURISDICTION.
UM, AND WE CAN'T FAIL AT OUR BUSINESS MODEL.
SO I THINK THAT'S, THAT'S AN IMPORTANT THING.
IT'S NOT AN OPTION FOR, UM, OUR 400 EMPLOYEES OR 400 PLUS EMPLOYEES, UH, OUR FAMILY, YOU KNOW, AND FOR THE COMMUNITY.
AND SO INSTEAD OF, UM, WE, WE DON'T HAVE GREAT NEWS TO TALK ABOUT TONIGHT, BUT I WANT TO INSPIRE YOU TO LOOK AT THIS SITUATION AND SAY, THIS IS AN OPPORTUNITY.
IT'S A, IT'S A STOPPING POINT WHERE WE CAN CHECK WHERE WE'RE AT AND LET'S START THINKING ABOUT HOW WE CAN TURN WHAT IS NOT POSITIVE NEWS IN TERMS OF SOME OF OUR, UH, UH, DEFICIT SITUATIONS THAT WE'RE LOOKING AT IN THE FUTURE.
AND WHAT KIND OF ACTIONS ARE GONNA HELP OUR COMMUNITY COME OUT OF THAT.
AND LET'S LOOK AT HOW WE CAN GROW OUR PROGRAMS, EXPAND THINGS.
I KNOW IT'S, IT'S THE FIRST THING PEOPLE THINK IS CUT, CUT, CUT.
BUT IF WE THINK CREATIVELY AND IF WE PLAY THIS OUT RIGHT, I THINK THAT WE CAN COME OUT OF THIS AND BE A STRONGER COMMUNITY AND OFFER A LOT MORE OPPORTUNITIES.
YOU HAVE A LOT OF GOOD GOALS THAT YOU'VE MENTIONED AND I THINK TONIGHT IS TRYING TO FIGURE OUT HOW WE CAN MAKE THOSE COME INTO FRUITION AND, AND, UH, AND START ON A PATH TO MAKE IT HAPPEN.
SO WITH THAT, LET'S START OFF WITH BRUCE, IF YOU CAN WALK US THROUGH AND WE'LL GO FROM THERE.
CITY COUNCIL, RESIDENTS AND STAFF.
UM, TONIGHT'S AGENDA, I REALLY WANNA FOCUS ON THE GENERAL FUND 'CAUSE IT'S OUR LARGEST SINGLE FUND.
IT'S THE ONLY FUND THAT HAS DISCRETIONARY FUNDING SOURCES.
I WANT TO SHOW YOU A LITTLE BIT WHERE WE STAND FOR THIS CURRENT PHYSICAL, PHYSICAL YEAR.
WE HAVE NOT LOOKED AT THE CURRENT PHYSICAL YEAR ACTIVITIES SINCE OUR MID-YEAR, SO I WANNA SHOW YOU WHERE WE STAND WITH THAT.
AND THEN THAT KIND OF LEADS US INTO NEXT YEAR'S, UM, OPERATING BUDGET FOR THE GENERAL FUND.
AND THEN WE'LL HAVE A SHORT PRESENTATION ON THE CIP PROJECTS PROPOSED FOR NEXT YEAR.
SO STARTING OUT FOR THE CURRENT FISCAL YEAR, I HAVE THESE COLUMNS, UM, COLOR CODED.
SO THE CURRENT YEAR IS THERE IN THE BLUE, AND THAT REPRESENTS THE ACTIVITY FROM JULY THROUGH APRIL OF THIS YEAR.
AND TO THE LEFT OF THAT IS THE SAME COMPARISON TIME PERIOD FOR PHYSICAL YEAR 2023 AND 2024.
SO YOU CAN LOOK ACROSS TO THE LEFT AND ACTUALLY COMPARE APPLES TO APPLES, UM, IN COMPARISON OF EACH OF THE VARIOUS REVENUE SOURCES.
THE GREEN COLUMN REPRESENTS THE CURRENT YEAR BUDGET FOR THAT PARTICULAR LINE ITEM.
AND THEN ON THE FAR RATE REPRESENTS HOW MUCH WE'VE ACTUALLY COLLECTED, UM, FOR THAT PARTICULAR LINE ITEM.
SO EXAMPLE, SO FAR FOR THIS YEAR, WE'VE ONLY COLLECTED 58% OF OUR PROPERTY TAX.
UM, THAT SEEMS RELATIVELY LOW, BUT WE WILL RECEIVE OUR, REALLY OUR LAST INSTALLMENT, OUR MAJOR LAST INSTALLMENT OF PROPERTY TAX IN THE MONTH OF MAY.
HOWEVER, WE WILL CONTINUE TO RECEIVE PROPERTY TAX ALL THE WAY THROUGH AUGUST, BUT OUR NEXT LARGEST PORTION WILL BE THROUGH, UM, IN MAY.
SO FAR, IT, IT LOOKS LOW, BUT IT LOOKS LIKE BASED ON, UM, PRIOR TRENDS WE'RE RIGHT ON TARGET TO WHERE WE EXPECT TO BE.
UM, RIGHT NOW WE'VE COLLECTED ALL THE WAY THROUGH FEBRUARY.
IT'S A TWO MONTH DELAY, SO WE STILL HAVE FOUR MORE MONTHS OF REVENUE TO COLLECT FOR SALES TAX.
THOSE TWO REVENUE SOURCES ALONE REPRESENT 79% OF
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OUR TOTAL GENERAL FUND REVENUES.SO IT'S REALLY CRITICAL THAT WE KEEP AN EYE ON THOSE TWO CATEGORIES TO MAKE SURE THAT WE'RE IN LINE.
OVERALL, UM, MOST OF THE REVENUES LOOKS LIKE THEY'RE TRENDING.
UM, AS EXPECTED, THE ONLY ITEM A LITTLE CONCERNED IS DEVELOPMENT, UH, FEES WE WOULD EXPECT TO COLLECT, UM, 314,000 BETWEEN NOW AND THE END OF THE YEAR, SO AT LIKE A MONTH AND A HALF.
SO THAT ONE I'M A LITTLE CONCERNED WE MAY NOT REACH OUR GOAL, BUT THE REST OF THE CATEGORIES, I BELIEVE WILL BE VERY CLOSE.
SO I OVERALL FEEL VERY CONFIDENT ON OUR REVENUES FOR, FOR THIS CURRENT FISCAL YEAR.
LOOKING AT OUR GENERAL FUND EXPENDITURES, HAVE IT BROKEN DOWN HERE BY DEPARTMENT, AGAIN, BROKEN DOWN BY EACH CATEGORY, EACH DEPARTMENT WITH A COMPARISON OF PRIOR YEARS ACTIVITY TO CURRENT YEAR ACTIVITY WE ARE IN, OR THIS REPRESENTS 10 OUT OF 12 MONTHS THAT REPRESENTS ROUGHLY 82% OF THE YEAR IS BEING COMPLETED.
SO KIND OF A GOLD KIND OF A, A ROUND FIGURE.
IT'S NOT KIND A HUNDRED PERCENT ACCURATE, BUT IF YOU LOOK AT THE FAR RIGHT COLUMN, ANY CATEGORY THAT'S 80, 82% OR LESS WOULD IDENTIFY THAT WE'RE, UM, ON TARGET OR NOT.
OVERSPENDING, AS YOU'LL SEE, FIRE IS ACTUALLY ABOVE THAT 83%, IF NOT, UM, A SCIENTIFIC NUMBER.
BUT IT IDENTIFIES KIND OF BALLPARK FIGURE WHERE WE EXPECT TO BE.
UM, THE REASON FIRE IS HIGH IS 'CAUSE WE'VE HAD SIGNIFICANT REIMBURSABLE OVERTIME, UM, EXPENSES THIS YEAR.
AND SO, UM, THAT WHILE IT LOOKS HIGH, THOSE REIMBURSABLE, UM, FIRE OVERTIME IS COMING BACK TO US IN REVENUES.
THIS IS OUR GENERAL FUND EXPENDITURES AS WELL AS BROKEN DOWN BY A CATEGORY OR TYPE, UH, WITH WAGES, UM, OPERATING MAINTENANCE CALLS, CAPITAL INTERNAL SERVICE FUNDS AND TRANSFERS.
SO AGAIN, THE KIND OF THE RULE OF THUMB IS, UM, 82% OR OR LESS WOULD BE IDEAL TO WHERE WE EXPECT TO BE.
UH, THERE'S ONE CAVEAT WITH THAT.
WITH PAYROLL, UM, WAGES AND BENEFITS, WE PAY OUR EMPLOYEES, UM, 26 TIMES A YEAR.
SO THERE'S TWO MONTHS OUTTA THE YEAR THAT ACTUALLY IS, THEY RECEIVE THREE PAYCHECKS.
SO IF YOU KEEP THAT IN MIND, WE'VE ALREADY PAID OUR EMPLOYEES 20 0 26 PAY PERIODS, SO IT HAS 79% OF THE YEAR.
SO OUR, IDEALLY WE SHOULD HAVE CONSUMED ABOUT 79% OF OUR BUDGET.
IT LOOKS LIKE WE CONSUMED 78%, SO WE'RE RIGHT ON TARGET OR JUST SLIGHTLY LESS.
SO OVERALL, UM, AS WE DID THE MID-YEAR ADJUSTMENTS TO OUR, OUR REVENUES AND EXPENDITURES, IT LOOKS LIKE OUR YEAR AND WE'LL BE VERY CLOSE TO UNFORTUNATELY OUR DEFICIT THIS YEAR.
THERE MAY BE, I'M HOPING THERE WILL BE SOME SAVINGS BOTH IN OPERATING MAINTENANCE COST AND A LITTLE BIT IN WAGES AND BENEFITS AS WE DO HAVE SOME VACANT POSITIONS.
BUT AS A STANDS RIGHT NOW, IT LOOKS LIKE REVENUES ARE ON COURSE FOR THIS YEAR AS WELL AS OUR EXPENDITURES.
CAN I, UH, ADD TO THAT? SO WE ARE, WE ARE TAKING OTHER MEASURES, UH, MORE FRUGAL MEASURES CURRENTLY TO TRY TO, UM, GET EVEN CLOSER.
SO I DON'T WANNA MAKE IT SOUND LIKE WE'RE JUST, YOU KNOW, TROTTING AHEAD ON WHAT YOU APPROVED IN OUR BUDGET.
WE'RE ACTUALLY SEEING THE SITUATION AND TRYING TO FIGURE OUT IN THE NEXT TWO MONTHS THE THINGS THAT WE CAN DO TO BRING THINGS IN EVEN CLOSER TO BUDGET.
SO, SO SOME OF OUR HIGHLIGHTS FOR THE CURRENT PROPOSED BUDGET FOR NEXT YEAR IS RIGHT NOW OUR BUDGET FUNDAMENTALLY IS A STATUS QUO BUDGET WITH NO ADDITIONAL STAFFING.
UM, NO NEW PROGRAMS OR SERVICES ARE INCORPORATED WITHIN THE CURRENT BUDGET.
HOWEVER, THERE ARE SOME, UM, UNIQUE ITEMS WITHIN THE BUDGET THIS YEAR.
OUR UNFUNDED LIABILITY FOR CALPERS WILL BE 3 MILLION AS OPPOSED TO 1.5 MILLION FOR THIS CURRENT PHYSICAL YEAR.
SO IT'S GOING UP UNFORTUNATELY.
UM, OUR OVERALL, OUR GENERAL FUND LIABILITY, OR NOT SO MUCH OUR GENERAL FUND, BUT LIABILITY, UM, IN GENERAL FOR OUR INSURANCE, OUR PREMIUMS ARE GOING UP A MILLION DOLLARS COMPARED TO THE CURRENT YEAR.
OUR PRIMARY REASON BEHIND THAT IS BECAUSE AS WE'RE IN THE JPA, AS THE GPA WENT OUT AND SHOPPED FOR INSURANCE COVERAGE, THIS IS AFFECTING ALL OF CALIFORNIA AS THE WILDFIRES, EVEN THOUGH WE DID NOT HAVE 'EM IN OUR CITY WILDFIRES UP AND DOWN THE STATE.
AND AS WELL AS FLOODING HAS A MAJOR IMPACT ON INSURANCE COMPANIES.
SO THEY, IN ORDER TO OFFER PREMIUMS TO THEIR CUSTOMERS, THEY'RE ACTUALLY INCREASING, UM, THEIR PREMIUMS THAT THEY'RE CHARGING US.
SO THAT HAS A SIGNIFICANT IMPACT.
UM, WE DO HAVE A SEPARATE FUND THAT WE TRACK THOSE PREMIUMS AND CLAIMS. HOWEVER, THE GENERAL FUND IS A MAJOR CONTRIBUTOR TO THAT FUND.
SO AS THE COST OF THOSE CLAIMS AS WELL AS OUR INSURANCE PREMIUMS INCREASE, THAT HAS A DIRECT EFFECT ON THE GENERAL FUND.
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SOMETHING THAT WE'RE, UM, PROPOSING NEW FOR NEXT YEAR IS ACTUALLY MOVING CIP PROJECTS OUT OF THE GENERAL FUND AND INTO A SEPARATE FUND.AND THIS WILL ALLOW US TO REALLY TRACK THOSE PROJECTS SEPARATELY AND REALLY HELP TO KEEP THE GENERAL FUND AS TRULY OPERATING COST THAT WE SEE DAY IN AND DAY OUT AS OPPOSED TO CIP PROJECTS, WHICH CAN, UM, TRICKLE OVER SEVERAL OF FISCAL YEARS.
AND IT MAKES THE TIMING OF CASH FLOW A LITTLE CHALLENGING AT TIMES.
AND THEN IN THE CURRENT YEAR BUDGET, RIGHT NOW WE ARE STILL BUDGETING, UM, THE CURRENT POLICY OF A HUNDRED THOUSAND DOLLARS, UM, ALLOCATED TO EACH DISTRICT.
AND THEN, UH, WITH THE ON, WITH THE NEW CANVAS, WITH FACILITIES OPENING UP THIS YEAR, UM, WE EXPECT THAT THAT WILL BE OPEN A FULL 12 YEAR, 12 MONTHS NEXT YEAR.
AND WE'RE OPTIMISTIC THAT WE SHOULD RECEIVE ROUGHLY ABOUT 250,000 FROM EACH STORE.
AND SO THAT'S WHY WE'RE, UM, PROGRAMMING RIGHT NOW A HALF A MILLION DOLLARS OF CANNABIS REVENUE.
AND THEN, UH, AS FAR AS WAGES AND BENEFITS, THERE WERE COLAS THAT WERE OFFERED DURING THE CURRENT PHYSICAL YEAR.
UM, IN PARTICULAR THE, UM, COLAS THAT WERE OFFERED 6% TO F-F-A-M-E-A AND CONFIDENTIAL, THAT WAS ONLY SIX MONTHS OF BUDGETED, UM, INCREASE FOR THE CURRENT PHYSICAL YEAR.
NEXT, NEXT YEAR, WE'LL REPRESENT A FULL 12 MONTHS, UM, INCREASE IN COLA.
SO THAT'S ALSO HAS, UM, AN IMPACT ON THE GENERAL FUND PROPERTY TAX OVER THE LAST SEVEN, SEVERAL YEARS.
GOING BACK TO 2018 HAS BEEN NICE, STEADY GROWTH.
AS YOU CAN SEE, THE BLUE LINE REPRESENTS ACTUAL REVENUES COMING IN.
THE RED LINE REPRESENTS THE TREND LINE, HAS BEEN A NICE STEADY GROWTH ABOUT 6.5% AND WE ARE EXPECTING, UM, ABOUT A 6% GROWTH NEXT YEAR.
SALES TAX OVER THE, SINCE 2018 HAS GROWN ABOUT AN AVERAGE OF ABOUT 3.9% GROWTH OVER THAT TIME.
YOU CAN SEE THERE WAS SOME, UM, IN 2020 IT DIPPED DURING COVID AND THEN IT PICKED UP DURING 22 AND THEN FUTURE YEARS.
RIGHT NOW WE'RE PROJECTING, UM, ALMOST FLAT AND NOT, NOT A SIGNIFICANT GROWTH.
WE'RE ACTUALLY ONLY PRODU PROJECTING A 3% FOR NEXT YEAR.
HERE'S OUR PER PROS GENERAL FUND REVENUES FOR NEXT FISCAL YEAR.
BROKEN OUT BY A CATEGORY PROPERTY TAX TO THE FAR RIGHT, UM, IS IS EXPECTED TO INCREASE 6%.
THE BLUE COLUMN, EXCUSE ME, THE GREEN COLUMN IN THE MIDDLE IS THE PROPOSED BUDGET FOR NEXT FISCAL YEAR.
TO THE LEFT OF THAT IS THE CURRENT YEAR BUDGET FOR THE, FOR 2025.
AND THE TWO COLUMNS TO THE LEFT ARE FULL YEAR ACTIVITIES FOR THOSE PHYSICAL YEARS.
SO LOOK, AGAIN, WE CAN COMPARE 2023 TO 2025 AND 26.
OVERALL, UM, WE'RE SEEING ROUGHLY ONLY A 2% INCREASE IN OUR GENERAL FUND REVENUES.
AGAIN, PROPER TAX AND SALES TAX ARE OUR TWO LARGEST SOURCES OF REVENUE.
THE OTHER CATEGORIES ARE NOT AS SIGNIFICANT IN, IN GENERAL.
UM, THE ONLY THING THAT WE'RE SEEING HERE IS A SLIGHT REDUCTION IN, IN, UM, OTHER REVENUE.
THE PRIMARY ITEM IN WHAT'S SHOWING A, A DEFICIT, OR NOT A DEFICIT, BUT A DECREASE COMPARED TO THE CURRENT YEAR TO NEXT YEAR IS REALLY POLICE, UM, EXCUSE ME, FIRE OVER TIME AS WE COLLECTED ALMOST, UM, A LITTLE OVER A MILLION DOLLARS IN REIMBURSABLE FIRE OVERTIME FOR THE CURRENT FISCAL YEAR.
WE ARE NOT, WE ARE CURRENTLY NOT PROJECTING TO RECEIVE QUITE AS MUCH NEXT YEAR.
UM, IF WE NEED NEED BE AT MID-YEAR, WE CAN MODIFY THOSE NUMBERS.
UM, OUR BREAKDOWN, LET ME BACK UP.
SO ONE OF, ONE OF THE LARGEST CATEGORIES AGAIN, IS OTHER REVENUE.
UM, THERE'S A LOT OF DIFFERENT ITEMS GOING INTO THAT CATEGORY.
THE OTHER CATEGORIES I THINK ARE FAIRLY SELF-EXPLANATORY.
FRANCHISE FEES, BUSINESS LICENSE, THOSE ARE ISOLATED, UM, SOLELY FOR THAT PARTICULAR ITEM.
KIND OF THE OTHER REVENUE IS A LITTLE BIT OF A CATCHALL, HAS VARIOUS ITEMS. SO THE BREAKDOWN WITHIN THE OTHER REVENUES REPRESENTS 1.2 MILLION OF INTEREST INCOME.
WE HAVE SOME REVENUES THAT WE RECEIVE FROM BILLBOARDS AND SALE TOWERS AS WELL AS, UM, 1.4 MILLION FROM REPORT AUTHORITY.
AGAIN, CANNABIS REVENUE IS LUMPED INTO THIS CATEGORY AS WELL AS REIMBURSEMENT FROM THE LOCAL SCHOOL DISTRICT FOR THE SCHOOL RESOURCE OFFICERS.
A TOTAL OF, UM, 6.9 MILLION OF OTHER REVENUES EXPECTED FOR NEXT YEAR.
HERE'S BROKEN DOWN BY DEPARTMENT.
UM, AGAIN, THE KIND OF THE PEACH COLOR, OUR PINK COLOR IN THE MIDDLE IS OUR PROPOSED, OR EXCUSE ME, IS OUR CURRENT YEAR BUDGET TO THE RIGHT AND GREEN IS OUR PROPOSED BUDGET FOR NEXT YEAR.
AND THEN THROUGH THE RIGHT OF THAT REPRESENTS THE DOLLAR VARIANCE BETWEEN THE CURRENT YEAR BUDGET VERSUS NEXT
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YEAR'S BUDGET.AT THE CURRENT GLANCE, THIS LOOKS A LITTLE ODD BECAUSE WE'RE SEEING, UM, SOME CREDITS IN THE VARIOUS DEPARTMENTS.
SO IT LOOKS LIKE THERE'S SAVINGS.
WHAT WE'RE ACTUALLY PROPOSING IS A CHANGE IN OUR METHODOLOGY OF HOW WE HANDLE BOTH OUR PENSION OBLIGATION BONDS AS WELL AS OUR UNFUNDED LIABILITY.
THOSE TOGETHER ARE REALLY THE SAME THING.
UM, HAD WE NOT GONE THROUGH THE PROCESS OF ISSUING THE BONDS HELP PAY DOWN OUR UNFUNDED LIABILITY, THE INVOICE THAT WE RECEIVED FROM CAL PERS WOULD'VE BEEN MUCH LARGER.
AND THE ONLY REASON WE HAVE AN INVOICE FROM CAL PERS RIGHT NOW ON TOP OF OUR POB BOND IS BECAUSE CAL PERS HAD LOST FUNDING DUE TO, UM, THE ECONOMY.
AND SO THE UUAL INVOICE THAT WE RECEIVE FROM THEM IS MORE OF A CATCH UP TO, TO THE EARNINGS THAT THEY DID NOT RECEIVE.
SO RECEIVE LOSSES IN PRIOR YEARS.
THE UAL, BECAUSE IT IS, I USED AIR QUOTES ASSOCIATED WITH LABOR, IT WAS ALWAYS CHARGED TOWARDS LABOR.
HOWEVER, IT'S NOT A DIRECT IMPACT TO THE CURRENT WORKFORCE.
SO THE UAL AND THE POB IS ASSOCIATED TO EMPLOYEES THAT ARE NO LONGER HERE.
SO THAT INFORMATION, I DO NOT RECEIVE AN INVOICE FROM CALPERS THAT'S TELLING ME HOW MANY POLICE OFFICER OR HOW MANY FIREFIGHTERS OR HOW MANY OTHER INDIVIDUALS ARE ASSOCIATED WITH THAT NUMBER.
SO SINCE I CANNOT IDENTIFY WHICH DEPARTMENT IT BELONGS TO, THE MOST APPROPRIATE PLACE IT BELONGS IS IN NON DEPARTMENT BECAUSE THAT IS A DEPARTMENT THAT IS, UM, NOT IDENTIFIED BY ANY OTHER PARTICULAR DEPARTMENTS.
SO HAVING THE UAL PAYMENT, UM, CO-MINGLED WITH VARIOUS DEPARTMENTS REALLY KIND OF SKEWS HOW MUCH IT COSTS TO RUN THOSE DEPARTMENTS.
SO THIS YEAR WE'RE PROPOSING TO MOVE THAT OUT.
AND AS YOU LOOK, AS YOU'LL SEE IN THE ONE COLUMN THERE, THE NON-DEPARTMENTAL IS INCREASING 8.2 MILLION FOR NEXT YEAR.
SO WHAT WE'RE HAVING, OR WHAT YOU'RE SEEING HERE IS ACTUALLY A, A SWITCH FROM THE VARIOUS DEPARTMENTS MOVING IT DOWN TO NON-DEPARTMENTAL AND GOING FORWARD, THOSE PAYMENTS FOR OUR BONDS AS WELL AS OUR UAL PAYMENTS WILL BE CATEGORIZED IN NON-DEPARTMENTAL SINCE NON DEPARTMENT IS A LARGE NUMBER.
UM, ON THE, ON THE PROPOSED BUDGET FOR NEXT YEAR, THIS IS THE BREAKDOWN WITHIN THAT DEPARTMENT.
UM, 2.2 MILLION FOR THE UAL PAYMENT.
THAT IS THE GENERAL FUND PORTION.
OTHER FUNDS HELP TO CONTRIBUTE TOWARDS THAT PAYMENT AS WELL.
BUT THE GENERAL FUND IS THE LARGEST MAJORITY, UM, CONTRIBUTOR.
UM, 4.8 MILLION IS THE POB BOND PAYMENT, AS WELL AS VARIOUS TRANSFERS TO OTHER DEPARTMENTS OR OTHER FUNDS I SHOULD SAY.
UM, AND THEN THAT'S A TOTAL OF 13.4 MILLION FOR THE NON-DEPARTMENTAL CATEGORY.
THE, UM, AGAIN, THIS IS GENERAL FUND EXPENDITURES, UM, BROKEN OUT BY REALLY CATEGORY OR TYPE.
THIS IS REALLY HOW WE SPEND OUR FUNDS.
WE'RE PROPOSING, UM, FOR NEXT YEAR, OUR WAGES WILL INCREASE, UM, ROUGHLY 2.3 MILLION.
THAT IS A, A COMBINATION OF THE COLA INCREASES FOR NEXT YEAR, AS WELL AS, UM, REALLY KIND OF THE SWITCH OF HOW WE MOVE OUR CATEGORIES AROUND THIS YEAR.
UM, THE OTHER ITEM, INTERNAL SERVICE FUND CHARGES THAT DOES SHOW A REDUCTION AT THIS TIME.
ONE OF THE ITEMS THAT WE'VE HAD IN THE PAST IS WE STILL HAVE OUR INSURANCE INTERNAL SERVICE FUND.
AND THAT WAS, THERE WAS A FORMULA THAT WAS CALCULATED, UM, BASED ON HEAD COUNT AND VARIOUS COMPONENTS, AND THAT WOULD BE CHARGED OUT FROM THE GENERAL FUND TO THE INTERNAL SERVICE FUND.
HOWEVER, WHEN THE INSURANCE COMPANY ASKS FOR, UM, DATA FROM US OF HOW THEY WILL GO OUT AND SHOP FOR THE INSURANCE, IT'S BASED ON OUR LABOR COST.
SO WHAT WE'RE PROPOSING IS TO NO LONGER USE THE FORMULA THAT WAS USED BEFORE, BUT USED A FORMULA SIMILAR TO WORKERS' COMP.
SO FOR EVERY DOLLAR THAT AN EMPLOYEE EARNS, UM, THIS INSURANCE PREMIUM WILL BE ASSOCIATED WITH THAT.
AND THE RATIONALE BEHIND THAT IS BECAUSE WHEN WE PROVIDE INSURANCE, EXCUSE ME, WHEN WE PROVIDE DATA FOR OUR NEXT YEAR'S PREMIUM IS A DERIVATIVE BASED ON OUR LABOR.
SO IF OUR LABOR COSTS GO UP, OUR INSURANCE POLICIES, PREMIUMS ALSO WILL GO UP AS A CORRELATION TO OUR LABOR COSTS AND IF OUR LABOR COSTS GO DOWN, AND IN THEORY, OUR INSURANCE PREMIUMS WILL GO DOWN AS WELL.
UM, YES, THERE IS SOME OTHER CORRELATIONS IN
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THAT CALCULATION DUE TO CLAIMS LOSS AND THE OPEN MARKET OF, OF HOW MUCH INSURANCE COSTS, BUT ONE OF THE, THE PRIMARY DERIVATIVE IS ASSOCIATED WITH LABOR COSTS.SO FROM NOW GOING, GOING FORWARD, THE COST OF LABOR WILL REFLECT THAT IN GENERAL INSURANCE THAT WE HAVE TO PAY, UM, TRANSFERS IS, LEMME BACK UP ONE SECOND HERE.
SO TRANSFERS OUT IS A, A LARGE CATEGORY IN THIS, UM, PRESENTATION, ROUGHLY 9.9 MILLION AS COMPARED TO LAST YEAR OF ONLY 2.7.
WHAT IS FALLING UP INTO THAT CATEGORY OF TRANSFERS AGAIN IS THE, FROM THE NON-DEPARTMENTAL TRANSFERRING OUT TO THE PENSION LIABILITY, UM, FUND, AS WELL AS THE TRANSFER TO VARIOUS OTHER DE FUNDS SUCH AS THE LIBRARY OF FUND PARK FUNDS.
AND THEN, UM, A MILLION DOLLAR PROPOSED TRANSFER TO OUR NEW CIP PROJECT FUND.
SOMETHING THAT WE'RE PROPOSING A LITTLE BIT DIFFERENT THAN WHAT WE'VE DONE IN THE PAST.
UM, HISTORICALLY FOR A NUMBER OF YEARS WE'VE ONLY BUDGETED 800,000 FOR POLICE OVER OVERTIME AS WELL AS $800,000 FOR FIRE OVERTIME.
AS YOU CAN SEE, A HISTORY HERE, GOING BACK TO 2021, POLICE OVERTIME AS WELL AS FIRE OVERTIME HAS BEEN SIGNIFICANTLY HIGHER THAN THE 800,000 THAT WAS TRADITIONALLY BUDGETED.
SO RIGHT NOW WE'RE PROPOSING TO BUDGET 1.3 MILLION FOR FIRE OVER TIME, EXCUSE ME, POLICE OVERTIME, AND THEN 1.8 MILLION FOR FIRE OVER TIME.
AND THEN RIGHT NOW HALF MILLION DOLLARS FOR THE FIRE REIMBURSABLE.
WITH THE FIRE REIMBURSABLE, WE DO RECEIVE AN ADDITIONAL 24 CENTS FOR ADMINISTRATIVE FEES FROM THE STATE.
AND SO AS WE WOULD INVOICE THE STATE FOR HALF A MILLION DOLLARS OF POTENTIAL OVERTIME, WE WOULD ACTUALLY RECEIVE 620,000 OF REIMBURSEMENT BECAUSE THERE'S AN OVERHEAD FACTOR THAT'S INCLUDED IN THAT OVERHEAD.
SO AS RE AS OVERTIME INCREASES, WE WOULD ACTUALLY RECEIVE MORE.
AND SO RIGHT NOW TO BE A CONSERVATIVE, UM, IF AT MIDYEAR WE NEED TO INCREASE THE THIS AMOUNT, WE CAN, IT WOULD ALSO, IT WOULD ALWAYS BE A DIRECT CORRELATION AS IN AS THE COST INCREASES PROPORTIONALLY, THE REVENUE WOULD INCREASE AT A RATE OF 24 CENTS PER DOLLAR OF OVERTIME WITHIN THE GENERAL FUND.
UM, I THINK SOMETIMES THIS IS NOT, UM, READILY, UM, VISIBLE TO LOOKING AT THE FINANCIAL STATEMENTS.
ON THE LEFT SIDE, WE HAVE THE VARIOUS FUNDS.
WE HAVE THE LIBRARY FUND, PARK FUNDS, NUTRITION, UM, THE POB FUND AND THEN THE NEWLY CREATED CIP FUND.
FOR EXAMPLE, THE LIBRARY FUND RECEIVES TAX PROCEEDS.
HOWEVER, THE GENERAL FUND HAS TO BACKFILL, UM, TYPICALLY TO SUPPORT THE LIBRARY AS WELL AS BACK BACKFILL TO SUPPORT THE PARK.
UM, IT SUPPORTS THE NUTRITION, SO THERE ARE, THERE IS WITHIN EVERY DEPARTMENT OR WITHIN THE GENERAL FUND SUPPORT FUNDING THAT GOES TO OTHER FUNDS TO SUPPORT THEIR OPERATIONS.
AND THEN TO THE RIGHT, WE ALSO HAVE OUR INTERNAL SERVICE CHARGES.
SO THESE, THESE COSTS WILL ARE CHARGED OUT TO THE GENERAL FUND TO THE VARIOUS DEPARTMENTS FOR BUILDING MAINTENANCE FOR OUR IT DEPARTMENT, FOR VEHICLE REPLACEMENTS AND VEHICLE MAINTENANCE.
FOR EXAMPLE, THE POLICE DEPARTMENT WOULD, WOULD PAY, UM, FOR THEIR PORTION OF FACILITY MAINTENANCE AS WELL AS THEIR PROPORTION OF IT COST AS WELL AS VEHICLE REPLACEMENTS.
SO NOT ONLY DOES THE INDIVIDUAL DEPARTMENT HAVE TO PAY FOR THEIR LABOR, THEIR OWN OPERATING MAINTENANCE COSTS, THEY ALSO WILL HAVE AN INTERNAL SERVICE CHARGE.
I'M JUST TRYING TO, UM, GIVE YOU AN IDEA THAT THERE'S MORE THAN JUST LABOR AND OPERATING COSTS THAT THEY'RE LEAVING THE GENERAL FUND.
SO I HAD MENTIONED EARLIER OUR GENERAL LIABILITY.
UM, WE HAVE A SEPARATE FUND THAT'S CALLED GENERAL LIABILITY AND WORKERS' COMP FUND ON THE PINK COLOR THAT REPRESENTS OUR PREMIUMS AND OUR COST FOR THE CURRENT FISCAL YEAR.
THE BLUE COLUMN REPRESENTS OUR PROPOSED, UM, AND THIS IS COMING FROM A THIRD PARTY.
THEIR INVOICES PROPOSED FOR NEXT YEAR, AND AS YOU CAN SEE, OUR GENERAL LIABILITY PREMIUM, UM, IS GOING UP, UM, A MILLION DOLLARS COMPARED TO LAST YEAR.
WORKERS' COMP IS ONLY INCREASING 52,000.
AND THEN OUR GENERAL LIABILITY AND WORKERS' COMP CLAIMS ARE ONLY PROJECTED TO INCREASE A LITTLE OVER A HUNDRED THOUSAND FOR NEXT YEAR.
SO THE REASON I PUT THIS SLIDE TOGETHER, IT IS A SIGNIFICANT IMPACT BECAUSE ONE OF THE MAJOR FUNDING SOURCES FOR THIS SEPARATE FUND IS THE GENERAL FUND.
THERE ARE OTHER FUNDS THAT HELP CONTRIBUTE TO, TO THIS FUND, BUT THE
[00:30:01]
GENERAL FUND IS A MAIN CONTRIBUTOR OF RESOURCES TO THIS DEPARTMENT.SO AS THIS FUND UNFORTUNATELY MAY GROW, IT WILL HAVE A DIRECT IMPACT ON THE GENERAL FUND INTERNAL SERVICE FUNDS.
SO THESE ARE THE VARIOUS DEPARTMENT OR SEPARATE FUNDS THAT DEPARTMENTS WITHIN THE GENERAL FUND CONTRIBUTE, SUCH AS BUILDING, UM, MAINTENANCE CHARGE, VEHICLE MAINTENANCE, CHARGE IT SERVICE CHARGE.
AS YOU CAN SEE, UM, GENERAL LIABILITY, THE GENERAL FUND IN 2025 CONTRIBUTED 2.2 MILLION TO THE GENERAL LIABILITY SEPARATE FUND.
AND THEN BECAUSE THE COST WITHIN THAT FUND IS INCREASING, UM, NEXT YEAR PROPOSED TO HAVE TO CONTRIBUTE 3.4 MILLION, UM, TO SUPPORT THAT FUND TRANSFER OUT.
THESE ARE FUNDINGS, UM, SOURCES FOR OTHER FUNDS.
THIS ARE, IS A COST TO THE GENERAL FUND TO HELP SUPPORT THE LIBRARY.
AS YOU CAN SEE, THE CURRENT YEAR, UM, SUPPORT WAS 1.4 MILLION.
NEXT YEAR IS PROPOSED TO BE 2.1 MILLION.
AND YOU CAN SEE THE VARIOUS, UM, PARK AND PARK MAINTENANCE HAS, IS INCREASING NUTRITION AS WELL AS OUR RETIREMENT FUND AND, UM, ARE TRANSFERRED OUT AS TO THE, UM, NEW CIP FUND.
SOME OF THE REASONS THE INCREASES, ESPECIALLY IN THE NUTRITION FUND, WE'RE ACTUALLY SERVICING MORE PEOPLE.
SO OUR COSTS WITHIN THAT DEPARTMENT IS INCREASING AND THE, THE GENERAL FUND IS, UM, LEFT TO BACKFILL THOSE COSTS.
THE OTHER INCREASES THAT WE'RE SEEING IN THE LIBRARY FUND AS WELL AS THE PARK MAINTENANCE FUND, UM, THERE'S SOME SWINGS BETWEEN WHAT WAS BUDGETED LAST YEAR, SOMEWHAT UNDER, UNDER BUDGETED THAN WHAT ORIGINALLY WAS ANTICIPATED.
AND THEN WE'RE SEEING THE INCREASE IN WAGES DUE TO THE COALS THAT WERE OFFERED IS ALSO HELPING TO IN DRIVE UP THE COST FOR NEXT FISCAL YEAR.
SO WE HAVE SOMEWHAT OF A UNDER BUDGET IN 25 BECAUSE OF SOME POSITIONS WE'RE NOT FULLY, UM, BUDGETED.
AND THEN IN 26 WHAT WE'RE SEEING, THOSE POSITIONS ARE FULLY BUDGETED AS WELL AS THE COST OF THE COLAS THAT WERE OFFERED.
UM, I HAVE PRESENTED THIS AT MIDYEAR JUST AS A REMINDER OF OUR POTENTIAL LIABILITY COSTS THAT WE ARE GOING TO HAVE TO PAY OVER THE NEXT SEVERAL YEARS.
THESE, THIS INFORMATION IS FROM DATA THAT WAS PROVIDED TO US LAST AUGUST.
I WILL NOT GET NEW INFORMATION UNTIL AUGUST OF THIS YEAR, BUT THIS IS MOST RECENT.
UM, HOPEFULLY THE NEW DATA WILL BE A LITTLE BIT BETTER, UM, BUT I DON'T EXPECT IT TO BE MUCH BETTER.
BUT RIGHT NOW, FOR THE CURRENT FISCAL YEAR, THE GENERAL FUND HAD TO CONTRIBUTE ONE POINT, ALMOST 1.5 MILLION TOWARDS THE UNFUNDED LIABILITY.
THE PROJECTION FOR NEXT YEAR, UM, FROM CATTLE PERS IS LOWER 3 MILLION THAT THE GENERAL FUND WILL HAVE TO CONTRIBUTE.
AND THEN GOING FORWARD IN 27, 28, 29, YOU CAN SEE THE COST OF THE U-A-L-U-A-L IS INCREASING SUBSTANTIALLY.
UM, WITHIN THIS SLIDE WE HAVE THE BUDGET FOR THE MAYOR AS WELL AS FOR EACH, UM, OF THE FOUR DISTRICTS.
THE COLOR CODED AREA IN THE MIDDLE REPRESENTS THE A HUNDRED THOUSAND DOLLARS THAT WAS, UM, IN THE POLICY THAT WAS ADOPTED LAST YEAR.
THE OTHER ITEMS THAT REPRESENTS THE, UM, EACH COUNCIL MEMBER'S STIPEND AS WELL AS THEIR BENEFITS THAT ARE OFFERED, UM, TO EACH DISTRICT.
AND THEN CURRENTLY WE HAVE 22 POSITIONS THAT ARE ON FIELD AT THIS TIME.
NUMEROUS OF ER, NUMEROUS POSITIONS HAVE BEEN VACANT FOR QUITE SOME TIME AND THERE'S VARIOUS REASONS WHY THESE ARE POSITIONS ARE VACANT WITHIN THE POLICE DEPARTMENT DUE TO, UM, THE HISTORICAL ATTRITION THAT THERE'S, UM, CHALLENGES OF HIRING STAFF, THAT WE HAVE QUITE A FEW VACANCIES WITHIN THAT DEPARTMENT.
UM, THE VACANCIES NOT BECAUSE THEY'RE NOT NEEDED, IT IS JUST THERE'S CHALLENGES OF HIRING STAFF AND THEN WITH THE CONTINUOUS TURNOVER AS WELL.
UM, JUST BRIEFLY ABOUT OUR UN FUND, UM, UNASSIGNED FUND BALANCE.
OUR MOST RECENT AUDIT IS THE 23 FY 23 AUDIT.
PER THE, UM, AUDIT REPORT WAS 23 MILLION.
OUR UNAUDITED PRELIMINARY FIGURES FOR FY 25, UM, IS EXPECTED TO INCREASE OUR UNASSIGNED FUND BALANCE, ROUGHLY 1.5 MILLION, BRINGING IT UP TO A TOTAL OF 24.5 MILLION.
WE FACTOR IN THE PROPOSED DEFICIT FOR THE CURRENT FISCAL YEAR.
WE REDUCE IT ROUGHLY 3.3 MILLION, AND THEN OUR PROPOSED DEFICIT FOR THE CURRENT OR THE FUTURE YEAR FOR 2026 OF BEING 8.2 MILLION.
OUR PROJECTED UNASSIGNED FUND BALANCE WOULD ROUGHLY BE, UM, JUST LOYAL UNDER 13 MILLION.
[00:35:03]
I KNOW SIMILAR PRESENTATIONS HAVE PRESENTED HAVE BEEN PRESENTED TO CITY COUNCIL IN THE PAST SHOWING SIMILAR, UM, RESULTS.THIS IS, UM, ASSUMPTION THAT IF, UM, REVENUES DO NOT REALLY INCREASE SIGNIFICANTLY, REALLY KEEPING STATUS QUO OF WHERE WE STAND RIGHT NOW VERSUS, UM, OUR EXPENSES.
IF OUR EXPENSES PRETTY MUCH STAY CONSISTENT, ONLY FACTORING IN THE FUTURE UAL PAYMENT.
THAT'S WHY, UM, THE UAL PAYMENT, THE RED LINE REPRESENTING OUR EXPENSES IS, UM, INCREASING STEADILY BECAUSE OF THE UAL PAYMENT.
AND THEN THE KIND OF THE YELLOWISH BOX REPRESENTS OUR UNFUNDED LIABILITY.
SO IN 2022, THAT'S LI THAT WAS ACTUAL DATA, HISTORICAL DATA FROM THE CAF R UH, THAT REPRESENTS, UM, UNASSIGNED FUND BALANCE ARE ROUGHLY, UH, 19 MILLION.
AND THEN IT INCREASED IN 23 TO, UM, ROUGHLY 22 MILLION OR 23 MILLION.
AND THEN IN 24, WE WE'RE PROPOSING THAT IT WILL BE ROUGHLY 24 MILLION.
AND THEN WITH OUR DEFICITS THAT WE'RE PROJECTED FOR THE CURRENT FISCAL YEAR, AND THEN NEXT YEAR AT THE CURRENT RATE OF, OF EXPENDITURES, UM, WITHOUT ANY NEW SIGNIFICANT REVENUES COMING IN BY 2027, WE WILL HAVE DEPLETED OUR ON A FUND UNASSIGNED FUND BALANCE.
UM, CURRENTLY THIS IS WHERE OUR RESERVES ARE PROJECTED TO BE BY THE END OF 2024.
UM, I SAY 2024, IT'S THE SAME AS 2023 BECAUSE, UM, NO NEW FUNDS HAVE BEEN ADDED TO THESE INDIVIDUAL CATEGORIES OTHER THAN THE INTEREST THAT'S ASSOCIATED THAT WOULD GROW WITHIN THESE PARTICULAR CATEGORIES.
SO OUR OPEP LIABILITY, ACCORDING TO THE CURRENT POLICY, WE ARE TO OBTAIN, MAINTAIN, UM, APPROXIMATELY 80% OF OUR UNFUNDED LIABILITY, OR EXCUSE ME, OUR OPEP LIABILITY WITHIN THAT FUND.
UH, ROUGHLY WE HAVE 3.5 MILLION IN THAT FUND.
UH, WE SHOULD HAVE ROUGHLY TO BE ON TARGET, ROUGHLY 3.8 MILLION.
SO WE'RE SLIGHTLY SHY OF WHERE WE SHOULD BE.
UM, THAT CATEGORY, ACCORDING TO OUR POLICY, SAYS THAT WE SHOULD HAVE TWO YEARS OF UNASSIGNED FUND BALANCE WITHIN THAT CATEGORY.
SO AFTER JULY OF PAYING THE 3 MILLION FOR NEXT FISCAL YEAR, WHICH WE'LL PAY IS 3 MILLION, WE LOOK AHEAD.
UM, WE WOULD, ACCORDING TO THAT POLICY, WE SHOULD HAVE 10 MILLION IN THAT ACCOUNT BECAUSE THAT WOULD REPRESENT THE 2027 AND 2028 UAL PAYMENTS THAT ARE DUE.
UM, RESERVE POLICY STATES THAT WE SHOULD HAVE A MINIMUM OF ROUGHLY 4.5 MILLION OF OUR CURRENT FISCAL YEAR OPERATING EXPENDITURES.
THE TARGET OF THAT WOULD BE ROUGHLY 3.6 MILLION.
OUR ECONOMIC CONTINGENCY POLICY STATES THAT WE SHOULD HAVE 20% OF OUR RESERVES, IT'D BE 20% OF OUR CURRENT OPERATING EXPENDITURES.
SO A TOTAL OF THAT CATEGORY IS ROUGHLY, I THINK IT WAS 16, ONE SECOND, 16.2 MILLION WOULD BE OUR TARGET IN THAT CATEGORY STARTING THE NEW FISCAL YEAR.
AND THEN OUR UNASSIGNED FUND BALANCE, UM, POLICY STATES THAT WE SHOULD HAVE A MINIMUM OF 10% WITHIN THAT CATEGORY WITH THE CURRENT PROPOSED BUDGET OF 81 MILLION, THAT'D BE 8.1 MILLION.
UM, A MINIMUM BALANCE REQUIRED WITHIN THAT CATEGORY.
UM, ONE, ONE QUESTION THAT, UH, 'CAUSE I'M NEW, UM, IS WHAT IS, UH, THE DIRECTION OF, WE HAVE THE POLICY OF HOW TO BANK IT.
THE QUESTION IN MY MIND IS UNDER WHAT CIRCUMSTANCES DO WE USE IT? AND, UH, WE'VE BEEN FOCUSED ON THE UNFUNDED, UH, OR BASICALLY I THINK OF IT AS THE GENERAL FUND RESERVE, THE BIG ONE THAT WE JUST SHOWED YOU ALL THE SLIDES ON.
UM, I DON'T KNOW, UH, BRUCE, IF IT, IF IT INDICATES UNDER WHAT CIRCUMSTANCES CAN YOU USE IT? 'CAUSE YOU USUALLY HAVE A RESERVE FOR SOME PURPOSE.
YOU KNOW, THE, THE, UM, ECONOMIC CONTINGENCY RESERVES ACCORDING TO THE POLICY, POLICY STATES THAT A CATASTROPHIC EVENT WITHIN THE ECONOMY WOULD TRIGGER THE USE OF THOSE FUNDS.
THE FACILITY MAINTENANCE IS DESIGNED FOR ANY MAJOR MAINTENANCE REPAIRS SUCH AS, UM, HVE SYSTEM MAY GO OUT ON, ON, ON CITY HALL BUILDING OR PUBLIC WORKS OR, UM, POLICE DEPARTMENT THAT COULD BE SUBSTANTIAL.
[00:40:01]
THAT ACTUALLY HAPPENED TO ME AT ANOTHER CITY AND WE WERE LOOKING AT AN EASY MILLION DOLLAR REPLACEMENT OF THAT UNIT.SO THAT MONEY IS DESIGNED FOR ANY EMERGENCY EQUIPMENT REPLACEMENT THAT, UM, WOULD BE NEEDED.
THE PENSION TRUST FUND, UH, WOULD BE DESIGNED FOR TO BE USED WHEN WE HAVE SUBSTANTIAL PAYMENTS DUE, FOR EXAMPLE, IN THE PREVIOUS SLIDES OF, OF THE 20, 29, 30 AND 31, THOSE PAYMENTS ARE VERY HIGH UP TO 7 MILLION.
SO IF WE WERE ABLE TO PUT MONEY OUTSIDE NOW INTO THOSE FUND, LET IT EARN INTEREST, THEN WE COULD START PULLING THOSE FUNDS OUT AND HELPING TO SUBSIDIZE THOSE UAL PAYMENTS DURING THOSE YEARS WHERE SUBSTANTIALLY HIGH.
AND THEN THE POLICY BEHIND THE OP E THE IDEA WAS THAT WE WOULD PUT MONEY INTO THE TRUST AND AS THE TRUST WOULD EARN INTEREST, THE INTEREST THAT WOULD BE EARNED COULD BE HELP PAY FOR FUTURE RETIREMENT PAYMENTS OR THE HEALTH INSURANCE.
SO, BUT WE HAVEN'T GOTTEN THAT FAR YET IN THAT PARTICULAR FORM.
SO, UM, NEXT PRESENTATION, WE'LL HAND IT OVER TO OUR PUBLIC WORKS DIRECTOR TO, UM, GIVE A HIGHLIGHT OF OUR PROPOSED CIP PROJECT FOR NEXT FISCAL YEAR.
I JUST WANT TO MAYBE POSE TO OUR CITY MANAGER AND COUNCIL THAT THAT WAS A LOT OF INFORMATION, IMPORTANT INFORMATION THAT REALLY FOCUSED ON, ON OUR OPERATIONS.
NOW WE'RE GONNA TRANSITION TO CAPITAL NEEDS.
DO WE WANT TO CONSIDER, UH, PAUSING AND DIRECTING ANY QUESTIONS ON THE OPERATING OR DO YOU WANT ME TO POWER THROUGH WITH THE CAPITAL NEEDS PRESENTATION? THAT'S KEEP GOING.
UH, SO GOOD EVENING MAYOR, UH, COUNCIL MEMBERS OF THE PUBLIC CITY STAFF, STEVE MANGANELLI, DIRECTOR OF ENGINEERING PUBLIC WORKS.
UM, WE HAVE A FAIRLY COMPREHENSIVE PRESENTATION.
I'LL TRY TO GET THROUGH IT QUICKLY ON OUR CAPITAL IMPROVEMENT PROGRAM.
AND REALLY THE, THE PURPOSE TONIGHT IS TO, FOR THE, THE MAYOR AND COUNCIL AND THE PUBLIC TO UNDERSTAND WHAT IS OUR PROCESS FOR PRIORITIZING AND FUNDING CAPITAL PROJECTS, WHAT ARE OUR NEEDS AND HOW ARE WE DOING WITH MEETING OUR CAPITAL NEEDS? AND THEN ALSO TAKING SOME TIME TO HIGHLIGHT, UM, SOME SIGNATURE PROJECTS THAT ARE IN VARIOUS STAGES OF, OF DELIVERY.
AND THEN, UH, WE ALSO WANT TO TOUCH ON OUR, OUR FLEET, OUR VEHICLE FLEET, WHICH IS CRITICAL FOR ALLOWING OUR STAFF TO PROVIDE THOSE, THOSE KEY SERVICES TO THE COMMUNITY.
SO STARTING WITH THE PURPOSE OF THE CIP, IT'S TO EVALUATE, PRIORITIZE, AND IDENTIFY FUNDING OPTIONS FOR THE REPAIR, REPLACEMENT EXPANSION, THE CITY'S PHYSICAL INFRASTRUCTURE FACILITIES AND PARKS.
IT'S, UH, WE, WE BUDGET BASED AND PLAN, UH, AS A FIVE YEAR BUDGET, BUT IT'S TRULY JUST THE ONE YEAR THAT'S ATTACHED TO THE CITY'S ANNUAL BUDGET THAT WOULD RECEIVE FUNDING.
WE ALSO GO TO OUR PLANNING COMMISSION FOR GENERAL PLAN CONFORMANCE.
UM, AND IN ADDITION, WE'RE GONNA TALK A LITTLE BIT ABOUT, UM, THE CRITERIA AND THE PROCESS FOR ESTABLISHING PROJECTS AS IT RELATES TO OUR ASSETS.
WE HAVE OUR INFRASTRUCTURE, WHICH IS, UM, OUR ROADS, OUR TRAFFIC SIGNALS, OUR OUR STORM DRAIN SYSTEMS, AND THEN OUR PARKS AND FACILITIES.
THE KEY CRITERIA WE LOOK AT, UH, IT STARTS FIRST AND FOREMOST WITH PUBLIC HEALTH AND SAFETY, UM, PROJECTS THAT CAN ENHANCE QUALITY OF LIFE.
WE LOOK AT OUR, OUR FUNDING, UH, THAT'S AVAILABLE AND WE'RE ALWAYS TRYING TO TIE BACK, UM, PARTICULARLY NEW PROJECTS TO, UM, LONG RANGE PLANNING EFFORTS IN THE, IN THE COUNCIL STRATEGIC OBJECTIVES.
UM, ON THE RIGHT, YOU CAN SEE OUR TYPICAL FUNDING SOURCES.
WE'RE VERY AGGRESSIVE AT GETTING AFTER COMPETITIVE GRANTS, AND WE HAVE A VERY GOOD TRACK RECORD OF BRINGING IN MILLIONS OF DOLLARS EACH YEAR TO DO PROJECTS.
WE ALSO RELY ON A PORTION OF OUR STATE GAS TAX FUNDS, LOCAL TRANSNET DOLLARS, UM, OUR SEWER SERVICE FUND FOR SEWER, UH, CAPACITY PROJECTS, AND ALSO OUR DEVELOPMENT IMPACT FEES.
UM, OUR OBJECTIVE IS ALWAYS TO MINIMIZE, UM, THE USE OF GENERAL FUND WHENEVER POSSIBLE.
I BRIEFLY WANT TO GO THROUGH OUR CAPITAL NEEDS, UM, AND WE'VE DONE OUR BEST TO KIND OF CATEGORIZE THESE TO WHAT I WOULD CALL
[00:45:01]
A LOT OF THESE ARE MAJOR MAINTENANCE THAT WE'RE REQUIRED TO DO TO PROVIDE CORE SERVICES TO THE COMMUNITY.SO WE TALK ABOUT OUR PAVEMENT MANAGEMENT, WHICH IS OUR STREET RESURFACING.
UM, WE DID, WE GO THROUGH EVERY SO OFTEN A PROCESS OF IDENTIFYING, UM, BASICALLY DOING A, A PAVEMENT CONDITION ASSESSMENT THAT DETERMINES THE STRUCTURAL INTEGRITY OF OUR ROADS.
UM, THE LAST TIME WE DID THIS WAS ABOUT 10 YEARS AGO.
UH, WE WERE TRACKING RIGHT AROUND A, A SCORE OF 75 OUT OF A HUNDRED CITYWIDE.
UM, WHICH IS GOOD, THAT'S WHERE WE WANT TO BE.
HOWEVER, UM, AS WE ALL KNOW, COSTS HAVE GONE UP SIGNIFICANTLY OVER THE LAST 10 YEARS.
SO WHILE WE WERE, YOU KNOW, DOING ABOUT TWO TO $3 MILLION A YEAR WORTH OF PAVING PROJECTS, IN ORDER TO MAINTAIN THAT SCORE, WE REALISTICALLY NEED TO BE DOING CLOSER TO 5 MILLION.
UM, OUR SEWER REPLACEMENT UPSIZING, WE, WE IDENTIFY THAT THROUGH OUR SEWER SYSTEM MASTER PLAN, UM, WHICH LOOKS AT OUR FLOWS, OUR CAPACITY, UM, ANY UPSIZING NEEDS BASED ON, UH, FUTURE, UM, REDEVELOPMENT TRENDS.
UM, AND WE BUDGET ACCORDINGLY AND PRIORITIZE THOSE PROJECTS.
WE TYPICALLY LOOK AT, UH, TRYING TO DO AN ANNUAL PROJECTS IN THE BALLPARK OF ABOUT $5 MILLION A YEAR.
OUR STORM WATER SYSTEM, THIS IS A TOUGH ONE BECAUSE WE DON'T HAVE, UM, A STEADY SOURCE OF REVENUE FOR THIS.
YOU KNOW, THIS IS, UM, HOW DO WE, UM, MANAGE OUR STORM WATER FLOWS WHEN WE, WHEN WE GET RAIN EVENTS, UM, HOW DO WE, UM, CONVEY THAT STORM WATER AND THEN WITH ALL THE STATE MANDATES ON WATER QUALITY, HOW DO WE TREAT THAT WATER BEFORE IT GETS INTO A WATER BODY SUCH AS PARADISE CREEK OR THE BAY? OUR BUILDINGS, OUR CITY BUILDINGS, WHICH WE REFER TO AS FACILITIES, UM, THEY ARE AGING EVERY YEAR.
UM, YOU KNOW, OUR POLICE DEPARTMENT ACROSS THE STREET, IT LOOKS REALLY NICE FROM THE OUTSIDE, BUT THAT BUILDING'S 40 YEARS OLD NOW AND ALL THE PLUMBING AND INFRASTRUCTURE, YOU KNOW, EVENTUALLY NEEDS TO BE REPLACED.
SO WE HAVE A LOT OF NEEDS AT ALL OF OUR CITY FACILITIES RIGHT NOW.
WE MANAGE APPROXIMATELY, I THINK IT'S 21 BUILDINGS, UM, FOR THE CITY.
AND, YOU KNOW, WHAT WE'RE, WE'RE SHOWING BASED ON THE NEEDS ASSESSMENTS IS WE, WE NEED TO BE SETTING ASIDE ABOUT $2 MILLION A YEAR.
UH, AGAIN, UNFORTUNATELY THERE'S NOT A LOT OF GRANT OPPORTUNITIES FOR MAJOR MAINTENANCE OF BUILDINGS, SO THAT FALLS HEAVILY ON THE GENERAL, GENERAL FUND.
SO HOW DO, HOW DO WE, AGAIN, LOOK AT OPPORTUNITIES FOR O OTHER SOURCES OF REVENUE OR NEW REVENUES TO MAKE SURE WE'RE KEEPING UP WITH OUR MAJOR MAINTENANCE? WE HAVE, UH, FEDERAL AND STATE MANDATES FOR ACCESSIBILITY, AMERICANS DISABILITY ACT COMPLIANCE.
UM, WE DO HAVE SOME OPPORTUNITIES USE OTHER SOURCES OF REVENUE SUCH AS GAS TAX GRANTS, DEVELOPMENT, IMPACT FEES.
UM, WE TRY TO DO ABOUT A MILLION DOLLARS A YEAR AND OVER TIME, THAT WILL, UM, HELP US GET MORE IN COMPLIANCE WITH THE DEFICIENCIES WE'VE IDENTIFIED THROUGH OUR A DA TRANSITION PLAN.
ANOTHER MAJOR CATEGORY IS, IS TRAFFIC SAFETY.
THAT'S, THAT'S FOR DRIVERS, FOR BICYCLISTS, FOR PEDESTRIANS, PEOPLE USING TRANSIT.
UM, THIS IS A CATEGORY WHERE WE'VE ACTUALLY EXCEEDED, YOU KNOW, UM, WHAT WE WOULD DETERMINE TO BE THE MINIMUM, UH, TO, TO HAVE A SUSTAINABLE SYSTEM.
AND THAT'S BECAUSE A LOT OF THE FUNDING RIGHT NOW AND WHICH HAS BEEN FOR THE LAST 10 YEARS IS IN TRANSPORTATION AND ACTIVE TRANSPORTATION PARTICULARLY.
SO WE'RE DOING A GOOD JOB WITH, UM, THESE TYPES OF, OF MOBILITY IMPROVEMENTS THROUGHOUT THE CITY.
UM, AND THEN FINALLY, WHEN WE LOOK AT OUR PARKS, OUR RECREATION AND, AND TRUE QUALITY OF LIFE TYPES OF AMENITIES THAT WE WANT TO OFFER TO OUR, TO OUR RESIDENTS, YOU KNOW, THAT ARE, THAT ARE IN LINE WITH OUR COMMUNITY-BASED PROGRAM NEEDS.
YOU KNOW, OUR COMMUNITY SERVICES DEPARTMENT MANAGES A LOT OF THAT, WHETHER IT'S OUR POOL AND THE CLASSES.
WE OFFER ALL THE PROGRAMS AT OUR REC CENTERS, UM, OUR, OUR FIELD USE FOR THE LITTLE LEAGUES AND, AND OUR MULTIPURPOSE FIELD, WHICH IS, UM, GOING TO GET REDONE, UH, OVER THE SUMMER HERE AGAIN, UM, WE, WE RELY HEAVILY ON GRANTS TO LOOK AT OPPORTUNITIES TO, TO IMPROVE THESE FACILITIES, WHETHER IT'S SOMETHING LIKE A PLAYGROUND ALL THE WAY UP TO A NEW, NEW RECREATIONAL RECREATION CENTER.
WHEN YOU START TO ADD ALL THESE UP, REALLY OUR, OUR TRUE TARGET IF WE ARE TO PROPERLY MAINTAIN OUR SYSTEMS AND, AND ADD NEW PROJECTS AND MORE AMENITIES TO IMPROVE QUALITY OF
[00:50:01]
LIFE FOR OUR RESIDENTS IS ABOUT $20 MILLION A YEAR.UM, YOU KNOW, YOU SAW FROM OUR FINANCE DIRECTOR THAT, UM, THE RECOMMENDATION FROM THE GENERAL FUND INTO OUR CIP FUND FOR, FOR NEXT FISCAL YEAR IS A MILLION DOLLARS.
THAT'S, THAT'S A VERY SMALL PERCENTAGE.
SO HOW DO WE MAKE UP THE OTHER 95%? SO AGAIN, WE, WE ARE VERY HEAVILY RELYING ON GETTING AFTER GRANTS AS WE TRANSITION THE GRANTS.
THESE ARE THE TYPICAL CATEGORIES OF GRANTS WE GET.
AFTER ALL THE WAY FROM, UM, LOCALLY THROUGH SANDAG, FEDERAL AND STATE OPPORTUNITIES, THERE'S ALWAYS NEW FUNDING STREAMS. AND WE DO OUR BEST TO ALIGN THE NEEDS OF THE COMMUNITY WITH THOSE FUNDING STREAMS TO PREPARE COMPETITIVE APPLICATIONS, TO BRING IN NEW REVENUES TO THE CITY TO DO MORE PROJECTS.
SO NOW WE JUST WANT TO GO THROUGH, UM, OUR CURRENT CAPITAL IMPROVEMENT PROGRAM AS FAR AS PROJECTS THAT ARE, UH, FULLY FUNDED AND AT VARIOUS STAGES OF THEIR LIFECYCLE.
SO AS IT RELATES TO FISCAL YEAR 25, UM, WE, UH, WILL BE DELIVERING, WE WILL HAVE DELIVERED ROUGHLY $13 MILLION IN PROJECTS.
UM, WE JUST HAD A BIG RIBBON CUTTING ON EAST, EAST SIDE 8 0 5, UH, THIS PAST, UH, THIS LAST, UH, WEEK.
AND, UM, A LOT OF THESE PROJECTS, UM, HAVE ALREADY BEEN COMPLETED.
MOVING FORWARD, WE HAVE ABOUT $27 MILLION IN PROJECTS THAT ARE CURRENTLY IN CONSTRUCTION, UH, THAT WILL BE COMPLETED MOST OF THESE NEXT YEAR.
AND THEN A VARIETY OF PROJECTS THAT ARE IN DESIGN.
UM, NOTABLY A LOT OF THESE ARE FUNDED THROUGH GRANTS.
WHEN WE LOOK AT THE BAY SHORE BIKEWAY, THAT PROJECT HAS BEEN IN CONCEPTION FOR ALMOST A DECADE.
UM, MULTIPLE SOURCES OF FUNDING, MULTIPLE GRANTS, UM, ALMOST $20 MILLION WORTH OF IMPROVEMENTS TO CLOSE A, A KEY, A CRITICAL GAP IN THE 26 MILE BIKEWAY AROUND SAN DIEGO BAY FOR US HERE IN NATIONAL CITY.
AGAIN, AS WE LOOK AT, UM, PRO THESE PROJECTS AND, AND MANY OF THEM HAVE BEEN FUNDED THROUGH GRANTS, WE'RE ALMOST AT $60 MILLION CURRENTLY OF PROJECTS THAT OUR TEAM WILL BE DELIVERING, YOU KNOW, OVER, OVER THE NEXT, REALISTICALLY ONE TO THREE YEARS.
AGAIN, WE TALKED ABOUT, UH, THE $1 MILLION TRANSFER.
UH, THESE MONIES ARE NEEDED TO CLOSE GAPS IN SOME OF THOSE PROJECTS WE JUST SHOWED YOU.
SO WE DO STILL HAVE SOME SMALL FUNDING GAPS TO DELIVER THOSE PROJECTS.
SO WE'RE ASKING FOR $1 MILLION.
NOTABLY, YOU KNOW, THE LAST FEW FISCAL YEARS THAT GENERAL FUND ASK HAS BEEN RIGHT AROUND $3 MILLION.
SO THIS IS A NOTABLE DECREASE, UH, GIVEN THE STATE OF, UM, YOU KNOW, OUR REVENUES VERSUS EXPENDITURES PROJECTED FOR NEXT YEAR.
SO WE ARE DOING OUR BEST ON THE CAPITAL SIDE TO STILL DELIVER HIGH QUALITY PROJECTS FOR THE COMMUNITY WITH LESS RELIANCE ON THE GENERAL FUND.
NEXT, WE'LL TRANSITION TO OUR FLEET.
UH, JUST A QUICK OVERVIEW OF, UM, YOU KNOW, THE PROGRAM, THE EVALUATION CRITERIA.
UM, YOU KNOW, YEARS AGO WE SET UP A VEHICLE REPLACEMENT FUND.
YOU CAN SEE ON THE SCREEN HOW WE PROGRAM FUNDING FOR THAT.
AND IT'S REALLY A GREAT TOOL BECAUSE IT ALLOWS US TO LOOK AT OUR, YOU KNOW, FIVE TO 10 YEAR PLAN FOR, FOR OUR FLEET BASED ON DEPARTMENTAL NEEDS, THE TYPES OF VEHICLE EQUIPMENT, THEIR USEFUL LIFE, WHICH WE CALL OUR ROTATION SCHEDULE.
AND WE CAN, WE CAN BUDGET IN ADVANCE ACCORDINGLY SO THAT WHEN IT'S TIME TO REPLACE THAT VEHICLE, WHETHER IT'S A A, A POLICE SUV PATROL OR SPECIALTY, UH, EQUIPMENT FOR PUBLIC WORKS, THE MONEY'S THERE AND, AND WE CAN STAY ON SCHEDULE.
UM, FOR THOSE OF YOU WHO YOU KNOW, WHO HAVE BEEN HERE A LONG TIME, IT WASN'T THAT LONG AGO.
UM, YOU PROBABLY GO BACK ABOUT 12 YEARS OR SO.
UM, OUR PUBLIC WORKS CREWS WERE DRIVING AROUND WITH BEAT UP TRUCKS THAT WERE FROM THE 1980S.
AND IF YOU LOOK AT OUR FLEET TODAY, UM, IT'S IMMACULATE.
UH, IT GIVES OUR EMPLOYEES PRIDE AND, AND IT'S, IT'S A GREAT SENSE OF PRIDE FOR THE COMMUNITY THAT WE'VE MADE THESE INVESTMENTS OVER TIME THROUGH SMART FINANCING DECISIONS.
AND WE'LL CONTINUE TO DO THAT AND LOOK FOR OPPORTUNITIES, UM, TO MAKE ADJUSTMENTS, TO CONTINUE TO MEET, MEET THE NEEDS OF OUR EMPLOYEES TO PROVIDE THOSE CRITICAL SERVICES.
UM, NOTABLY WE DO HAVE STATE MANDATES THAT WE HAVE TO FOLLOW TO, TO TRANSITION OUR, OUR FLEET TO,
[00:55:01]
UH, TO ELECTRIC VEHICLES.UM, YOU KNOW, GOVERNOR NEWSOM RECENTLY, UH, SIGNED AN EXECUTIVE ORDER THAT REQUIRES ALL GOVERNMENT FLEETS TO GO TO ZERO EMISSION BY 2035, YOU KNOW, SO WE ARE NOW OFFICIALLY 10 YEARS OUT.
UM, WE DID AS, AS WE, UM, COMMITTED TO, TO COUNCIL COMPLETE OUR FIRST, UM, TAKE AT A EV TRANSITION PLAN SO THAT WE CAN PHASE OVER THE NEXT 10 YEARS HOW WE'RE GOING TO DO THAT.
AND WE ARE, IF YOU COULD SEE HERE ALREADY MAKING GOOD PROGRESS WITH, UM, A LOT OF OUR, OUR NEWER VEHICLES BEING EITHER FULL ELECTRIC OR, OR HYBRID.
AND THEN LASTLY, THIS IS A LITTLE HARD TO READ, BUT THIS IS OUR FUNDING RECOMMENDATION.
UM, IT SHOWS WHETHER WE'RE RECOMMENDING LEASE OR PURCHASE, THE TYPE OF VEHICLE, SOME NOTES ON THE NEED.
UM, AND THEN THE SUMMARY AT, AT THE BOTTOM, AGAIN, WE, WE DO GO THROUGH THIS.
UH, WE WORK VERY CLOSELY WITH EACH DEPARTMENT.
UH, WE LOOK AT OUR ROTATION SCHEDULE AND, AND WORKING WITH OUR MECHANICS AND OUR, AND OUR, UM, EQUIPMENT MAINTENANCE SUPERVISOR.
AND I COULD TELL YOU THESE NUMBERS LOOK LARGE, BUT, UH, WE, WE ALREADY HAVE GONE THROUGH AND SCRUBBED THIS AND POSTPONE WHAT WE CAN.
UM, THE MAIN THING IS TO STAY ON THE ROTATION SCHEDULE, ESPECIALLY FOR PUBLIC SAFETY.
UM, YOU NOTICE HERE, OH, I WANTED TO GO BACK.
YOU NOTICE HERE UNDER FIRE, UM, THEY'RE GOING TO NEED A NEW, UM, AERIAL LADDER TRUCK.
AND INSTEAD OF WAITING UNTIL IT'S TOO LATE BECAUSE OF THE BUILD TIME ON THESE TRUCKS, IT'S ABOUT THREE TO FOUR YEARS TO BUILD A NEW ONE.
WE'RE STARTING TO BUDGET FOR THAT NOW.
SO THAT THREE, FOUR YEARS FROM NOW WHEN THAT FRONTLINE TRUCK, UM, IS NO LONGER, YOU KNOW, UM, HAS REACHED ITS USEFUL LIFE, A BRAND NEW VEHICLE WILL BE DELIVERED AND READY FOR USE TO, TO, SO THAT WE CAN MAINTAIN OPERATIONS.
SO WITH THAT, UM, I'M GOING TO TURN IT BACK OVER TO OUR FINANCE DIRECTOR.
HE HAS A FEW MORE SLIDES BEFORE WE WRAP UP.
DO YOU GUYS HAVE ANY QUESTIONS FOR, UH, STEVE ON THE CAPITAL PROGRAM? OKAY, THANKS.
YEAH, I GUESS THIS IS MY TURN NOW.
SO, UH, YOU KNOW, THE, YOUR STAFF'S BEEN WORKING ON A NUMBER OF IDEAS AND THINGS TO TRY TO BRIDGE THE GAP OF, UM, INCREASING REVENUES FOR AND LOOKING FOR REVENUE OPPORTUNITIES, AS WELL AS TALKING ABOUT SOME EXPENDITURE, UH, THINGS THAT WE CAN, UH, REEVALUATE.
SO, YOU KNOW, ESSENTIALLY, UH, SOME OF THIS IS IDEAS OR THINGS THAT WE'RE WORKING ON.
UH, THERE WAS A DISCUSSION ABOUT THE POSSIBILITY OF EXPLORING A VACANT PROPERTY TAX.
UH, WE DO HAVE VACANT PROPERTIES THAT, UH, HAVE AN IMPACT ON THE CITY, AND WE'RE NOT COLLECTING, YOU KNOW, REVENUES, BUT THEY STILL HAVE IMPACTS ON THE CITY.
UM, WE HAVE, UH, UM, I THINK ON THE SALES TAX ADJUSTMENT, BUT CORRECT ME IF I'M WRONG, I, I THINK WE'RE MAXED OUT ON SALES TAX.
THE STATE'S NOT GONNA, YOU KNOW, WE'RE AT THE CEILING FOR THAT.
UM, BUT IT'S ALL ALSO JUST REALLY WORKING WITH HDL OUR, OUR CONTRACTOR TO MAKE SURE WE'RE COLLECTING, UH, SALES TAX.
AND THAT'S ALWAYS A CHALLENGE, AS WELL AS MAKING SURE THAT SALES THAT ARE HAPPENING IN NATIONAL CITY ARE BEING ATTRIBUTED TO NATIONAL CITY.
SOMETIMES YOU'LL FIND SITUATIONS WHERE, UM, THEY'RE ATTRIBUTED TO OTHER LOCATIONS, AND THAT'S, UH, THAT'S A PROCESS.
IS IT GONNA MAKE A HUGE DIFFERENCE IN, UH, REVENUE INCREASES? NO, BUT IT'S, IT'S REALLY A COMPETENT THING TO KEEP ON TOP OF, UM, TRANSIENT OCCUPANCY AND TAX AND WHETHER OR NOT, UM, YOU KNOW, I THINK RIGHT NOW WE'RE AT 10%,
[01:00:01]
I BELIEVE, UM, YOU KNOW, COMPARED TO OTHER AGENCIES AROUND US, I DON'T KNOW THEM ALL, BUT I KNOW THAT THAT, UM, IS AN AREA WHERE WE COULD LOOK AT, UH, AS AN AVENUE TO ADJUST IF WE WANTED TO, UH, LOOK FOR NEW, UH, UH, REVENUE.UH, WHEN WE LOOK AT FEE AND INSOURCING, UM, AND AGAIN, BECAUSE I'M NEW, I'M ONLY, I ONLY KNOW SOME OF THESE THINGS THAT WE'RE WORKING ON.
I KNOW THAT THERE WAS SOME DISCUSSION OF, UH, OF WORKING ON THE PARKING DISTRICTS AND SHARED PARKING.
UM, WE WANTED TO REVISIT THE FRANCHISE FEES.
THESE ARE ALL THINGS THAT AGENCIES DO PERIODICALLY, AND THEY DEFINITELY DO WHEN THEY HAVE BUDGET ISSUES LIKE WE'RE STARING AT, UM, THERE'S SOME IDEAS ABOUT, UH, MEDICAL TRANSPORT THAT WE'RE LOOKING AT AND EXPLORING, UH, WHETHER IT'S GONNA BE A PARTNERSHIP WITH ANOTHER AGENCY OR THE POSSIBILITY OF, OF LOOKING AT, UM, IF WE'RE GONNA SHIFT CONTRACTORS OR DO IT OURSELVES.
ALL THOSE HAVE IMPACTS, BUT THEY'RE THINGS THAT WE SHOULD BE EXPLORING BECAUSE THE OPPORTUNITIES THERE, UM, ARE SIGNIFICANT ENOUGH TO NOT JUST BE COMFORTABLE WITH WHERE WE'RE AT.
UM, THERE'S RECREATIONAL ACTIVITIES, UH, THAT ARE OUT THERE.
UM, AND AGAIN, THIS IS KIND OF IN THE MINDSET OF, YOU KNOW, TO GET AWAY FROM THE NORMAL TREND OF INCREASED RATES ON YOUR RESIDENTS AND THEN CUT BACK ON PROGRAMMING.
UM, WE'RE TRYING TO, TO TAKE A DIFFERENT APPROACH 'CAUSE WE KNOW THOSE ARE OPTIONS.
UM, AND THAT IS HOW CREATIVE CAN WE BE AT OFFERING OTHER SERVICES THAT MIGHT GENERATE REVENUES AND AT THE SAME TIME MEET OTHER COMMUNITY NEEDS THAT WE CURRENTLY AREN'T.
UH, MEETING THE, UM, AND AGAIN, THE NEW SENIOR CENTER, THERE'S A LOT, THERE'S BEEN A FAIR AMOUNT OF DISCUSSION AND WE WANNA WORK, UH, CLOSELY WITH, UH, COMMUNITY SERVICES STAFF TO TALK ABOUT ALL THE DIFFERENT OPPORTUNITIES THERE.
UM, YOU'VE ALREADY, UH, STARTED ON THE PROCESS OF WHAT WE'RE DEALING WITH, WITH, UH, WELL, WE DID THE SEWER FEES.
SO EVEN THOUGH THAT'S NOT GENERAL FUND THAT IS RECOUPING THE COST OF, OF PROVIDING SERVICES, UH, WE HAVE A STUDY AND A GOOD, IT'S ALREADY BEEN, I THINK THE SECOND DRAFT, UH, THAT LOOKED AT ALL OF OUR SERVICE FEES IN THE CITY.
UM, AND IT'S MY UNDERSTANDING, NOT JUST THE ONES WE CURRENTLY HAVE, BUT AREAS WHERE WE, UH, DON'T HAVE FEES, BUT THERE ARE OPPORTUNITIES TO, TO COLLECT FOR SERVICES WE PROVIDE.
THAT STUDY WE BELIEVE SHOULD BE COMING TO YOU IN THE JUNE TIMEFRAME.
UM, IF NOT, IT WILL BE COMING IN AUGUST, BUT RIGHT NOW IT'S ON TARGET TO COME IN JUNE.
UH, IT'S JUST BEING LOOKED AT, UH, I THINK IT'S THE SECOND OR THIRD TIME.
UM, AND I'VE JUST NOW, UH, HAVE IT WITH ME TO LOOK AT TOO.
SO THAT'S COMING YOUR WAY AND, UM, NOT ASSUMING THAT YOU'RE GONNA APPROVE ALL THE ADJUSTMENTS.
UM, THERE'S A NUMBER OF THINGS THERE THAT HAVE NOT BEEN ADJUSTED IN A LONG TIME.
UM, BUT THE IMPACT OF THE FEES THAT ARE BEING PROPOSED RIGHT NOW, UM, IS A SIGNIFICANT, UH, IMPACT, UH, IN THE FEE AREA OF REVENUE.
THE, UM, AND THE UPDATE ON DEVELOPMENT AND IMPACT FEES ARE ALSO BEING LOOKED AT.
THEY'RE NOT PREPARED TO COME BACK TO YOU PROBABLY TILL, YOU KNOW, THE AUGUST TIMEFRAME.
SO THOSE TWO STUDIES ARE ALREADY IN THE PIPELINE ONE'S COMPLETED, WE'RE JUST REVIEWING IT AT THE STAFF LEVEL.
THE OTHER ONE IS ALMOST COMPLETED, BUT IT HASN'T STARTED ITS CIRCULATION AND STAFF.
UM, WHEN WE TALK ABOUT, UM, AND, AND REALLY WHAT I STARTED THIS MEETING AS, UH, TALKING ABOUT ARE WE GONNA MOVE FROM BEING KIND OF THE TYPICAL MUNICIPAL MODEL OR, UH, MAYBE A FUTURE MUNICIPAL MODEL, UM, OR BUSINESS MODEL.
AND I THINK THIS PARTICULAR AREA, UM, IS THE AREA WHERE THERE WE SERVE THE MOST POTENTIAL.
AND THESE ARE SOME OF THE IDEAS THAT WE'RE LOOKING AT.
UM, MOST OF WHICH YOU'RE ALREADY AWARE OF, YOU KNOW, ADDITIONAL MIXED USE ZONING TO TRY TO GENERATE MORE BUSINESSES COMING TO TOWN, ADDITIONAL HOTEL OPPORTUNITIES.
WE HAVE THE, THE, UM, BAY MARINA THAT'S, THAT'S WHAT I'M CALLING IT.
IT'S OFF OF BAY MARINA PROJECT AND, AND HOW THAT MIGHT BE, UH, A VERY IMPORTANT PROJECT FOR US.
AND WE'RE MOVING ON THAT, UH, FULL SPEED.
WE'RE JUST WAITING ON RIGHT NOW THE TAXING AGENCIES TO GET FEEDBACK AND AS SOON AS WE GET THAT FEEDBACK, THEN WE KNOW WHAT WE'RE DEALING WITH IN TERMS OF, UH, WHAT WE ARE GONNA NEED TO PAY OUT FOR THAT PROPERTY.
AND AGAIN, I KNOW THERE HAS BEEN TALK ABOUT, YOU KNOW, SELLING THE PROPERTY VERSUS, YOU KNOW,
[01:05:01]
UM, US OWNING IT.I THINK, UM, YOU KNOW, WE WILL EXPLORE THAT, BUT I THINK IT'S, UH, PROBABLY FOR A LONG TIME INVESTMENT FOR THE CITY, IT'S PROBABLY BETTER THAT WE OWN IT AND WE FIGURE OUT A MODEL, UM, NOT JUST WITH THAT, BUT WITH THE PROPERTY WE'RE ON RIGHT HERE IN ALL OF OUR OTHER CITY PROPERTIES OF WHERE WE CAN TRY TO MEET THE OBJECTIVES THAT YOU HAVE IN THE COMMUNITY, UH, NOT ONLY FOR HOUSING THAT'S AFFORDABLE AND WHETHER THAT'S, UM, UH, OWNER AFFORDABLE OWNERSHIP HOUSING, BUT ALSO HOW TO FACILITATE OUR FACILITIES.
WE'RE SITTING IN A BUILDING THAT'S, I DON'T EVEN KNOW THE HOW OLD THIS BUILDING IS, BUT IF THE POLICE STATION IS 40, ALMOST 40 YEARS.
THIS HAS GOTTA BE, UH, QUITE A BIT OLDER THAN THAT.
BUT, UM, WE'RE LOOKING AT THE IDEA OF WHERE WE TAKE A SITUATION.
I'LL USE THIS AS AN EXAMPLE, AND I'M REALLY GONNA LOOK TO CARLOS TO MAYBE FILL IN.
BUT IT'S REALLY TAKEN THE MODEL OF WHAT WE'VE ALREADY BEEN SUCCESSFUL WITH, WITH THE HOUSING AUTHORITY, YOU KNOW, AND THE PROJECTS THAT WE'VE DONE THAT BUILT A NUTRITION CENTER THAT'S FUNDING A PORTION OF NUTRITION CENTER, YOU KNOW, THE SENIOR, UM, UH, FACILITY, THE PARK, UH, THAT WAS BUILT FOR WITH THE OTHER, UH, FACILITY IS TO DO THE SAME THING, BUT DO IT IN A MUCH BROADER WAY.
NOT ONLY TO REBUILD FACILITIES OR ADD NEW FACILITIES, PARKS, OR RECREATIONAL ACTIVITIES, BUT ALSO TRY TO DO IT IN SUCH A MATTER THAT IS GONNA INCREASE REVENUES TO SUPPORT PROGRAMS. AND THERE'S A MODEL TO DO THAT.
IT'S FIGURING OUT WHAT YOU NEED TO PUT ON A PROPERTY TO SUPPORT THOSE.
AND I THINK THAT'S SOMETHING THAT, YOU KNOW, WE'VE ALREADY STARTED TALKING ABOUT IT.
WE HAVE THE SIX PROPERTIES THAT ARE OUT THERE, UH, RIGHT NOW THAT ARE ON THE STREET.
WE'RE TRYING TO DO THE, THE HOTEL PROPERTY.
UM, WHAT I WOULD ENCOURAGE YOU AND WHAT WE'RE THINKING ABOUT IS JUST EXPAND THAT MODEL, UM, AND LOOK AT THIS FROM THE STANDPOINT OF WHAT CAN WE START WORKING ON NOW THAT POSSIBLY WE CAN GET DEVELOPED, BUILT, AND IN PLACE IN FOUR TO SIX YEARS, THAT WE'LL BE HITTING THAT OTHER ISSUE THAT WE HAVE FOUR TO SIX YEARS DOWN THE ROAD WHERE REVENUES ARE GONNA BE REALLY IMPORTANT.
SO IN A PERFECT WORLD, UH, WE WOULD'VE DONE THIS.
UH, BUT THERE'S NOT A LOT OF CITIES DOING WHAT WE'RE TALKING ABOUT.
THE THIS IS, THIS IS A MODEL, WHICH, UM, UH, LISTENING TO SOME OF YOUR COMMENTS AND KNOWING THE HISTORY, UM, WE HAD REDEVELOPMENT, BUT REDEVELOPMENT COUNTED ON THE TAX INCREASE THAT WAS THE STATES BEFORE.
AND SO THE STATE HAD THE ABILITY TO PULL IT BACK.
SO I THINK WHAT WE NEED TO LOOK AT IS SOMETHING THAT'S MORE SELF-SUFFICIENT.
HOW CAN WE FUNCTION ALMOST LIKE A DEVELOPER AND INVESTOR IN OUR OWN COMMUNITY THAT WE CONTROL IT WHERE NO ONE CAN PULL IT BACK.
NOW, WE TALKED ABOUT A LOT OF OTHER PROGRAMS WHERE THEY'RE BEING FUNDED BY GRANTS.
UM, WHEN GRANTS ARE CUT OFF, THEN WE'RE BACKED TO ON OUR OWN.
SO I THINK CHANGING OUR MODEL TO LOOK AT OPPORTUNITIES WHERE WE'RE TAKING CARE OF OUR NEEDS, UH, BY BEING CREATIVE.
AND IN THIS CASE, THE, ONE OF THE OPTIONS IS BEING OUR OWN INVESTOR DEVELOPER IN THE COMMUNITY.
AND, UM, THAT WAY WE'RE IN CONTROL OF OUR DESTINY INSTEAD OF A GRANT PROGRAM OR FUNDING FROM THE FEDERAL GOVERNMENT, OR FOR THAT MATTER, EVEN, EVEN OTHER DEVELOPERS.
SO YOU TALK ABOUT THE CONCERN ABOUT DEVELOPERS COMING INTO THE COMMUNITY, WE NEED THAT, BUT WE SHOULD BE AN AGGRESSIVE DEVELOPER TOO, SO WE CAN KEEP THE MONEY IN THE COMMUNITY.
DON'T, YOU KNOW, THERE'S ALWAYS THAT, YOU ALWAYS WANT BUSINESS TO BE WORKING, BUT IN THIS SITUATION, WHAT WE'RE TALKING ABOUT IS IF WE'RE IN THAT POSITION, THEN WE'RE IN BETTER CONTROL.
AND THAT'S NOT JUST WITH BIG DEVELOPMENT, THAT COULD BE WITH SMALL DEVELOPMENT, BUT IT'S JUST A DIFFERENT MENTALITY, I THINK IS WHAT WE'RE TRYING TO GET AT.
WE HAVEN'T FULLY THAT TONIGHT IS TO JUST PUT THE IDEA OUT THERE, SEE IF THERE'S INTEREST.
AND MANY OF THESE THINGS ARE THE SAME WAY.
WE EXPECT YOU TO HAVE A LOT OF QUESTIONS ABOUT 'EM.
UM, BUT WE'RE LOOKING FOR GUIDANCE OF, OKAY, THESE ARE GOOD IDEAS, OR WE CAN'T, YOU KNOW, GIVE US DIRECTION TO CONTINUE TO MOVE ON 'EM, OR THAT DOESN'T SOUND RIGHT TO ME.
UH, OR YOU NEED MORE INFORMATION.
SO WE REALIZED WE CAN DO THESE BULLET POINTS AND I, AND WE CAN SPEAK TO SOME OF THESE ITEMS IN A VERY SHORT WAY, BUT WE CAN PUT A LOT MORE INFORMATION, UH, BEHIND THIS AND BE PREPARED FOR THE NEXT TIME WE MEET AT THE NEXT BUDGET MEETING.
UM, SO I, THAT ENCAPSULATED A LOT OF STUFF ON THERE.
YES, WE CAN DO MORE ADDITIONAL GRANT, UH, REVENUES AND, AND WE WILL, UH, AGGRESSIVELY LOOK AT THAT.
UM, THE CITY LAND SALES AND LEASES REALLY IS COVERED BY WHAT I JUST SAID.
[01:10:01]
UM, WE'RE, WE'RE CLEARLY WORKING WITH THE PORT.UM, I THINK THERE'S OPPORTUNITIES AT THE PORT, NOT JUST IN THE MSA, BUT, UH, YES, THE BALANCE PLAN, UH, THAT'S BEING WORKED ON RIGHT NOW.
UH, I THINK THE PORT'S PORTION OF THE BALANCE PLAN IS BEING TEED UP TO POTENTIALLY BE A COASTAL, UH, IN JULY.
IF THAT GOES THROUGH, THEN, UM, WE'RE KIND OF OFF TO THE RACES, YOU KNOW, SO THAT'S A GOOD, A REALLY GOOD THING.
UM, THE, UH, AND I, I'M JUST KIND OF PITCHING AS I SEE HERE, UM, SPONSORSHIP, UM, OF SERVICES AND ACTIVITIES, UM, THAT'S ALWAYS A SENSITIVE ITEM, YOU KNOW, BECAUSE SPONSORS LIKE TO HAVE THEIR NAMES ON STUFF.
BUT I THINK IF WE CAN DO IT IN A TACTFUL WAY, THERE ARE SOME THINGS OUT THERE THAT, THAT COULD BE REALLY POSITIVE.
WE ALREADY HAVE THE BILLBOARD SIGNAGE, UM, PROGRAM THAT'S UNDERWAY WHEN WE'RE LOOKING AT THAT, UM, AS TO IS THERE OPPORTUNITIES TO EXPAND IT OR JUST TO OPTIMIZE WHAT WE HAVE? AND THEN, UM, WE'RE LOOKING FOR YOUR IDEAS.
SO WE TALKED INTERNALLY ABOUT, UM, A FARMER'S MARKET.
UM, IS THERE A POSSIBILITY TO HAVE A FARMER'S MARKET THAT MAY GENERATE SOME REVENUE OR FOR, AT THE VERY LEAST, BREAK EVEN, BUT AN ITEM THAT BRINGS THE COMMUNITY TOGETHER.
SO AGAIN, WE KNOW THE ENVIRONMENT OF HOW TO REDUCE EXPENDITURES THERE.
THERE'S NOT, YOU KNOW, THERE'S NOT ROCKET SCIENCE BEHIND THAT.
AND WE'RE TIGHTENING RIGHT NOW, AND WE'LL TALK TO YOU IN CLOSE SESSION ABOUT THINGS THAT ARE RELATED TO LABOR.
'CAUSE WE CAN'T TAKE TALK ABOUT THAT RIGHT NOW, UH, 'CAUSE THE POSITION OF BARGAINING.
BUT REALLY I'M ENCOURAGING US TO LOOK AGGRESSIVELY AT THE MORE, I THINK, MORE POSITIVE STANDPOINT.
AND THAT IS WHAT CAN WE PUT IN PLACE, WHAT CAN BE WE CAN BE CREATIVE ABOUT.
UM, IN JAPAN, I NOTICED, I ACTUALLY FLEW IN, FLEW OUT JAPAN WHEN I WAS THERE.
UM, I NEVER, I NEVER THOUGHT ABOUT THIS QUITE THE SAME.
BUT A LOT OF THEIR BUILDINGS AND STREETS, THERE'S BUILDINGS OVER STREETS.
WELL, WE'RE THE BIGGEST PROPERTY OWNER IN TOWN.
UM, WE HAVE A, A LOT OF ASSETS THAT ARE UNDER UTILIZED.
AND THAT'S WHAT I WAS SAYING WHEN WE TALKED ABOUT WE ALMOST HAVE 400, UH, MILLION DOLLARS IN ASSETS THAT'S LOOKING AT THESE ASSETS LIKE OUR TYPICAL MUNICIPAL GOVERNMENT.
IF WE GET MORE CREATIVE, THAT ASSET VALUE IS GONNA BE A LOT MORE VALUABLE TO US.
BUT WE HAVE TO SEE WHAT THE COMMUNITY IS, IS COMFORTABLE WITH.
AND SO WHEN I USED THE, THE IDEA ABOUT, UH, WHAT I SAW IN JAPAN WITH THEM OPTIMIZING THEIR RIGHT OF WAY, UM, THEY HAD THE CLEAR RIGHT OF WAY AND THEY BUILT A DECK OVER IT.
AND IN ONE AREA THEY HAD A PARK THAT WAS COMPLETELY OVER THE ROADWAY, UH, THAT TIED TWO BUILDINGS TOGETHER.
AND IT WAS A PLACE FOR PEOPLE TO RECREATE AS THE TRAFFIC AND PEDESTRIAN ACTIVITY WENT UNDERNEATH AND PEDESTRIAN WAS ON TOP, ANOTHER ONE HAD A FULL ON ANOTHER BUILDING.
SO, UM, WE REALLY NEED TO THINK ABOUT NATIONAL CITY, NOT 2025.
THAT'S THE REALITY OF WHAT WE'RE DOING NOW, BUT WHAT'S NATIONAL CITY GONNA LOOK LIKE IN 2050 WHEN PEOPLE ARE GONNA USE A COMPLETELY POSSIBLY DIFFERENT WAY OF GETTING AROUND? UM, OUR LIVES ARE CHANGING.
SO, UM, A LOT OF THINGS HAPPEN TO CITIES THAT KEEP THEM TIED TO WHERE THEY ARE TODAY.
WHERE THE OPPORTUNITY I THINK FOR US IS LET'S GET AHEAD OF OTHERS AND REALLY THINK ABOUT, YOU KNOW, 20, 30, 40 YEARS AND TO, TO REALLY BE AHEAD OF OTHERS.
WE NEED TO MAKE THOSE DECISIONS NOW.
THERE'S THINGS THAT WE NEED TO DO NOW THAT IS GONNA MAKE A DIFFERENCE IN THIS COMMUNITY.
YOU KNOW, 5, 10, 15 YEARS, UH, OUT.
SO ANYWAY, THAT'S, THAT'S OUR, UH, I DON'T THINK WE HAVE ANY MORE, DO WE? SORRY.
OH, UM, COST SAVING MEASURES, YES.
THESE ARE, UM, LET ME FLIP THE PAGE 'CAUSE I CAN'T SEE THAT FAR.
UM, WE ARE, UM, ANALYZING THE FLEET, UH, IN TERMS OF, DOESN'T MAKE SENSE TO LEASE OR PURCHASE.
UH, WE ARE LOOKING AT TECHNOLOGY.
WE SPEND A LOT OF EFFORT, A LOT OF RESOURCES AND TIME RESPONDING TO, UM, PUBLIC, UH, REQUESTS FOR RECORDS.
AND SO WE'RE LOOKING AT DIFFERENT OPPORTUNITIES AND WE'VE MADE SOME GOOD OPPORTUNITIES OF PUTTING INFORMATION OUT ON OUR WEBSITE SO PEOPLE CAN ACCESS IT.
BUT, UM, THERE'S A LOT OF, THERE'S A LOT OF POTENTIAL THERE THAT CAN HELP US FREE UP STAFF TIME, PROVIDE BETTER SERVICES TO OUR COMMUNITY SO THEY CAN GET THE INFORMATION QUICKLY THAT
[01:15:01]
THEY'RE LOOKING FOR.UM, ENERGY EFFICIENCY, WE'RE, WE HAVE BEEN WORKING ON THAT.
IT'S JUST CONTINUING ON THAT FRONT.
AND THEN OPTIMIZING AND STRATEGIC, UH, POSSIBLY REORGANIZATION OF DEPARTMENTS TO GET US PREPARED FOR NOT ONLY TODAY, BUT WHAT WE'RE LOOKING, UH, FOR IN THE FUTURE.
AND, UM, THEN WE TALKED ABOUT, YOU KNOW, THE NUTRITION CENTER IS A, A HUGELY GREAT PROGRAM, BUT WE'RE PROVIDING A SERVICE THAT GOES WAY BEYOND OUR BORDERS, UH, WAY BEYOND THE COST THAT WE ENVISION, UH, INITIALLY.
AND I THINK WE'RE SUPPORTING THAT BY BRUCE, DO YOU REMEMBER FROM THE GENERAL FUND? I FORGET THE FIGURE.
IT'S LIKE MAYBE THREE, 400,000, 500, 500,000.
AND WE'RE FEEDING PEOPLE, WHICH IS A GREAT THING TO DO.
I JUST, YOU KNOW, I HAVE A HARD TIME THINKING OF MYSELF, OF ABOUT THIS ISSUE BECAUSE I'M LOOKING AT ALL THE OTHER AFFLUENT COMMUNITIES THAT WE HAVE, AND HERE'S OUR COMMUNITY THAT IS REALLY STRAPPED FOR RESOURCES AND WE'RE REALLY DOING A SERVICE THAT IS FAR BEYOND OUR BORDERS.
AND SO IT'S TRYING TO FIGURE OUT EITHER HOW WE CAN GET THE RESOURCES TO CONTINUE THAT BEYOND OUR BORDERS, UM, BUT UH, ALSO, UH, BE ABLE TO MAINTAIN IT.
BUT THE LEVEL THAT IT'S AT NOW IS WAY BEYOND WHAT PEOPLE ANTICIPATED AND IT'S TAXING US.
AND, AND WE NEED TO FIGURE OUT HOW TO DEAL WITH THAT.
SO ANYWAY, THAT, THAT'S WHAT I HAD.
AND, UH, WE'RE OPEN FOR QUESTIONS AND, UH, WE'RE READY TO GO.
I'M GONNA ASK FOR COUNSEL TO KINDA HOLD OUR QUESTIONS AND EVERYTHING.
UH, YOU TAKE SOME NOTES DOWN SO YOU DON'T FORGET 'EM.
[4. PUBLIC COMMENT (Public Comment will be Restricted to Agenda Items Only)]
WE CAN HEAR FROM THE PUBLIC AT THIS STAGE AFTER THAT LONG PRESENTATION.AND, UH, WE DO HAVE A, A GOOD NUMBER OF SPEAKERS.
UH, THE SUBJECT MATTER IS THE BUDGET AS YOU HEARD IT PRESENTED.
SO THAT'S WHAT HAS TO BE SPOKE TO SINCE THIS IS A SPECIAL MEETING.
SO THAT'S THE ONLY TOPIC THAT CAN BE SPOKEN TO AT THIS, AT THIS POINT IN TIME.
SO I'M GONNA BE CALLING UP THREE PEOPLE AT A TIME AND ASK THAT YOU WOULD PLEASE LINE UP HERE IN THE, UH, IN THE MIDDLE AREA SO THAT WE CAN GO AS QUICKLY AS POSSIBLE AND GIVE EVERYONE TWO MINUTES, UH, TO SPEAK.
SO WITH THAT, I'M GONNA GO WITH, UH, IS ADORA LOPEZ TO BE FOLLOWED WHAT BY BEATRIZ, MS. KAYANO, I THINK IT IS.
AND TO BE FOLLOWED BY ANNA MARIA.
LES, WE HAVE TRANSLATION OKAY.
FOR THE, FOR THEM ARE SPEAKING, YES.
UM, I'M A COMMUNITY ORGANIZER HERE IN NATIONAL CITY WITH THE ALLIANCE OF CALIFORNIANS FOR COMMUNITY EMPOWERMENT.
UM, MANY OF OUR MEMBERS LIVE IN KIMBALL AND MORGAN TOWERS APARTMENT COMPLEX, UM, AND RELY UPON THE SERVICES PROVIDED BY THE NUTRITION CENTER, UM, TO BE ABLE TO HAVE HEALTHY LIVES MM-HMM
UM, AS SENIORS, IT BECOMES MORE AND MORE DIFFICULT TO COOK FOR YOURSELF.
UM, AND IT'S ALSO AN IMPORTANT SOCIAL ENVIRONMENT WHERE SENIORS ARE ABLE TO INTERACT WITH ONE ANOTHER AND HAVE A SENSE OF COMMUNITY INSTEAD OF BEING TRAPPED, UM, IN A LITTLE APARTMENT ALL DAY.
UM, SO THAT I JUST AM IN SUPPORT OF NOT CUTTING THE, THE NUTRITION CENTER AND ACTUALLY INSTEAD, UM, THERE'S A NEED TO EXPAND THE SERVICES THERE.
UH, NEXT WE HAVE BEATRIZ TO BE FOLLOWED BY ANNA MARIA TO BE FOLLOWED BY JESSE DE ES NUTRITION.
WAIT, WE'LL GET THE TRANSLATION PLEASE.
WHENEVER YOU'RE READY FOR TRANSLATION.
I LIVE IN KIMBALL TOWER, AND I HAVE BEEN GOING TO THE NUTRITION
[01:20:01]
CENTER EVERY DAY FOR OVER EIGHT YEARS NOW.AND THIS IS A BENEFIT THAT IT, THAT IS NOT JUST FOR ME, BUT I KNOW OF MANY OTHER PEOPLE THAT ALSO BENEFIT FROM THIS.
UM, HUNDREDS OF PEOPLE GO THERE, NOT JUST FROM THE TOWER, BUT FROM OTHER PLACES AS WELL.
THE FOOD IS REALLY, REALLY GOOD.
AND I JUST WANNA ASK YOU TO PLEASE DO WHAT IT TAKES SO THAT WE CONTINUE HAVING THIS NUTRITION CENTER AVAILABLE.
SO THE NEXT WE HAVE, UH, ANNA MARIA, ANNA, ANNA MARIA LES.
AND FOLLOWED BY JESSE DIAZ, FOLLOWED BY LOOKS LIKE MOLINA.
AND IF WE COULD HAVE TRANSLATION PLEASE.
HI, MY NAME IS ANNA MARIA LES.
I ALSO LIVE AT KIMBALL APARTMENTS, AND I ALSO EAT THERE ALMOST EVERY DAY AT THE NUTRITION CENTER.
I THINK THE CHEF IS REALLY GOOD.
AND THERE ARE MANY PEOPLE THAT GO TO THE NUTRITION CENTER TO EAT, NOT ONLY FROM THE CAMPBELL APARTMENTS, BUT ALSO FOR OTHER PLACES.
AND, UM, THERE ARE PEOPLE THAT EAT THERE AND THAT'S THE ONLY MEAL THEY HAVE A DAY.
SO IT WOULD BE REALLY SAD IF YOU HAD TO CUT THE BUDGET FOR THE NUTRITION CENTER.
SO PLEASE, I ASKED YOU NOT TO DO THIS.
NEXT WE HAVE JESSE DIAZ TO BE FOLLOWED BY, UH, MILENA ALVAREZ TO BE FOLLOWED BY JUAN.
[01:25:01]
HERE BEFORE YOU TO TALK ABOUT SUCH AN IMPORTANT TOPIC FOR THE NATIONAL CITY COMMUNITY.AND NOT ONLY FOR OUR COMMUNITY FOR, BUT ALSO AS MANY HAVE ALREADY MENTIONED, FOR PEOPLE THAT COME FROM OTHER PLACES.
THE NUTRITION CENTER FEEDS A LOT OF PEOPLE.
NATIONAL CITY IS GROWING A LOT.
I SEE MORE AND MORE PEOPLE IN THE DOWNTOWN AREA EVERY DAY.
AND I EVEN THINK THAT WE NEED A NEURONUTRITION CENTER OR A BIGGER NUTRITION CENTER.
THIS IS SOMETHING THAT SETS US APART FROM OTHER CITIES, AND I UNFORTUNATELY DON'T HAVE ANY GOOD IDEAS TO GIVE YOU SO THAT YOU DON'T CAUGHT THE BUDGET THERE.
BUT I PLEASE URGE YOU TO DO WHAT IT TAKES SO THAT WE CAN CONTINUE HAVING OUR NUTRITION CENTER.
UH, MILENA, UH, AND THEN, UH, JUANITA, AND THEN, UH, ELIANA DELGADO.
AND IF WE COULD HAVE THE TRANSLATION PLEASE.
I HAVE LIVED AT THE KIMBALL APARTMENTS TOWER FOR FOUR YEARS, AND I THINK THREE MONTHS AFTER, AFTER, UM, STARTING LIVING THERE, I STARTED GOING TO THE NUTRITION CENTER.
AND, UM, I REALLY LIKE IT THERE BECAUSE THE FOOD IS REALLY GOOD.
I USED TO TAKE A PILL BECAUSE I WAS ILL WITH CANCER, AND I'M NOT ASHAMED TO SAY THIS, BUT I HAD TO TAKE THIS PILL BECAUSE IT WOULD HELP ME TO GO TO THE BATHROOM REGULARLY AND GOING TO THE NUTRITION CENTER AND EATING WHAT THEY OFFER THERE, VEGETABLES, FRUITS, AND EVERYTHING HAS HELPED ME A LOT.
EVERYTHING THEY OFFER THERE IS, IS REALLY GOOD.
AND YOU ONLY HAVE TO PAY $3 AND 50 CENTS IF YOU'RE 60 YEARS OR OLDER, OR JUST $1 IF YOU DON'T HAVE ANY MONEY, BECAUSE FOR A LOT OF US, YOU KNOW, WE ALL, WE ALWAYS GET, UH, THE SAME AMOUNT OF MONEY FROM THE SOCIAL SECURITY OR WHATNOT.
AND I THINK THIS IS REALLY, REALLY GOOD.
AND I, AT FIRST I THOUGHT THAT THIS WAS ONLY OFFERED TO THOSE OF US WHO LIVED AT THE TOWER, BUT THEN I FOUND OUT THAT IT'S FOR THE WHOLE COMMUNITY.
AND I REALLY WANT THIS TO CONTINUE BEING THIS WAY.
SO PLEASE DO NOT CUT THE BUDGET FOR THE NUTRITION CENTER.
ALRIGHT, UH, NEXT WE HAVE JUANITA, FOLLOWED BY ELIANA PHILIP FOLLOWED BY LOUISA MCCARTHY.
[01:30:03]
GOOD EVENING MAYOR, VICE MAYOR COUNCIL, AND MEMBERS OF THE PUBLIC.I'M A RECREATION SUPERVISOR WITH COMMUNITY SERVICES.
OUR DEPARTMENT WORKED HARD FOR THE PAST YEAR TO DEVELOP AND PROVIDE MORE PROGRAMS FOR RESIDENTS OF NATIONAL CITY IN THE HOPES THAT WE WERE FINALLY GROWING OUR TEAM WITH APPROVED RECREATION CENTER SUPERVISORS FOR CAMACHO AND CA.
WE WERE FOLLOWING COUNCIL DIRECTION AND WE ADDED CLASSES AT OUR FACILITIES THAT WENT FROM NINE TO 41 CLASSES.
NOW WE FIND OURSELVES DOING TWICE THE WORK WITH EVEN MORE LIMITED RESOURCES.
PART-TIMES ARE RUNNING OUT OF HOURS AND THEY DON'T FEEL SUPPORTED SINCE THEIR, THEIR RECREATION SUPERVISORS ARE SPREAD THIN AND YOUR RECREATION SUPERVISORS ARE RUNNING OUT OF ENERGY AND MOTIVATION.
AND SOON ENOUGH, WE WILL FIND OURSELVES GOING BACK TO LIMITED PROGRAMMING AFFECTING YOUTH AND FAMILIES IN NATIONAL CITY.
WITH THAT BEING SAID, IF WE EVER GET RECREATION CENTER SUPERVISORS APPROVED AND ONBOARDED, THESE NEW POSITIONS CAN FOCUS ON THE DAY-TO-DAY OPERATIONS OF OUR REC CENTERS.
AND YOUR RECREATION SUPERVISORS CAN FOCUS ON APPLYING AND MANAGING GRANTS AT THE FEDERAL AND STATE LEVEL TO HELP FACILITATE MORE PARKS AND RECREATION PROGRAMMING, COLLABORATE WITH OTHER DEPARTMENTS ON GRANTS THAT COULD HELP ENHANCE OUR BUILDINGS AND OTHER AMENITIES IN THE CITY.
OR FOCUS ON UPDATING POLICIES THAT COULD HELP BRING IN REVENUE TO THE CITY WITH FACILITY RENTALS AND FIELD ALLOCATIONS AND SO ON.
IF THE CITY CAN'T MOVE FORWARD WITH THESE POSITIONS, WE WOULD FIND OURSELVES CUTTING PROGRAMS AGAIN AND AFFECTING OUR RESIDENTS QUALITY OF LIFE.
OKAY, NEXT WE GO WITH, UH, ELIANA, UH, DELGADO, FOLLOWED BY LUISA MCCARTHY, FOLLOWED BY, UH, MIKA BLANCO.
COUNCIL MEMBERS, STAFF AND MEMBERS OF THE PUBLIC.
I'M A LONG-TERM NATIONAL CITY RESIDENT AND RECREATION SUPERVISOR FOR THE COMMUNITY SERVICES DEPARTMENT.
I'M HERE AGAIN TODAY TO ASK YOU TO GO THROUGH THE BUDGET WITH A FINE TOOTH COMB.
THINK ABOUT WHY WE ARE ALL HERE.
WE ARE ALL HERE TO SERVE THE NATIONAL CITY COMMUNITY.
IN MY DEPARTMENT, WE HAVE BEEN ABLE TO DO A LOT WITH VERY LITTLE, BUT WE ARE TIRED.
WE CANNOT KEEP MOVE, KEEP PROVIDING THE SAME LEVEL OF SERVICE, AND WE CANNOT IMPROVE OUR SERVICES IF WE DO NOT GET MORE FULL-TIME SUPPORT.
AS JUANITA ELA MENTIONED ON TUESDAY, THERE WERE TWO RESTORATION CENTER SUPERVISOR POSITIONS APPROVED BY THE CITY COUNCIL AT THE JUNE 4TH, 2024 MEETING.
THESE POSITIONS WERE ACTIVELY RECRUITED FOR, BUT THEN WE WERE TOLD THAT THEY WERE NEVER BUDGETED, SO THE HIRING WAS PUT ON PAUSE.
THAT WAS VERY DISAPPOINTING, ESPECIALLY BECAUSE WE LATER FOUND OUT THAT THE NUTRITION CENTER MANAGER POSITION, WHICH WAS NOT APPROVED AT THE, OR EVEN CONSIDERED AT THE JUNE 4TH, 2024 MEETING, WAS GOING TO BE FILLED.
AND JUST ON TUESDAY, THE NEW NUTRITION CENTER MANAGER WAS INTRODUCED DURING THE CITY COUNCIL MEETING.
THE PROCESS SEEMS TO BE BROKEN.
IN SOME CASES THEY MAKE IT HAPPEN, AND IN OTHERS THEY DON'T.
I HOPE YOU ASK THE RIGHT QUESTIONS AND THAT THE BUDGET YOU DO END UP APPROVING GETS DONE.
NEXT WE HAVE LUISA MCCARTHY, FOLLOWED BY MIKA POLANCO, FOLLOWED BY ALICIA MORRISON RE, WASHINGTON, DC THE NATIONAL
[01:35:12]
WE HAVE TRANSLATION, PLEASE,SORRY, I'M THE INTERPRETER, BUT I HAVE BEEN, I'M NOT ASSIGNED ANYMORE AS INTERPRETER.
SORRY, WHAT WAS THAT? MOVE THE ASSISTANCE.
YOU SHOULD ALSO REMOVE THE ASSISTANCE OF THE, OF THE MAYOR BECAUSE THIS ACT AS A EXTENSION OF THE, OF THE MAYOR DOING AGREEMENTS BEHIND THE DOOR AND MAKING SURE WE GET IN AS SPONSORSHIPS.
IF THEIR MAYOR NEEDS, UH, SOMEONE, AN ASSISTANT GOING TO CITIES SUCH AS MEXICO CITY, WASHINGTON, DC AND OTHER EVENTS, ORGANIZATION, NONPROFIT EVENTS DURING THEIR GALA.
IF HE ASSISTANT WANTS TO WEAR TIED DRESSES AND WITH A NON-PROFESSIONAL LOOK REPRESENTING NATIONAL CITY, THEN THERE'S EXPENSES SHOULD COME FROM THE MAJOR MAJORS POCKETS AND NOT FROM THE POCKETS OF THE CITY.
THIS MONEY COULD BE INVESTED IN, IN COMMUNITY SERVICES FOR, FOR THE ELDERLY, FOR THE PUBLIC OFFICE, AND THE EMPLOYEES THAT DESERVE A FAIR COMPENSATION.
ALSO, WE SHOULD MENTION THAT WE NEED A SERIOUS, WE HAVE A BIG SERIOUS DEMAND OF $10,000 FOR THE POLICE DEPARTMENT BECAUSE THEY DIDN'T KNOW HOW TO, HOW TO TREAT PEOPLE WITH DIGNITY AND RESPECT IN ORDER TO HAVE GOOD PEOPLE.
ALSO, THE LEADERS SHOULD HAVE THE BE BE THE GREAT, THE GREATEST ROLE MODELS AND HAVE, AND SHOW HOW TO TREAT OTHERS WITH RESPECT AND DIGNITY.
THIS CONTINUES AND NOW THIS IS WHY WE HAVE A LEGAL, WE WE HAVE TO TAKE THEM TO THE, TO THE COURTS.
THIS IS, PEOPLE SHOULD FOLLOW THE RULES AND DO NOT MISBEHAVE AND DO NOT MISTREAT OTHERS BECAUSE EVERYTHING IS SEEN, EVERYTHING IS HEARD, AND EVERYTHING IS KNOWN.
UH, MIKA POLANCO, FOLLOWED BY ALICIA MORRISON.
GOOD AFTERNOON COUNCIL MEMBERS.
SCOTT, I LOVE THAT PRESENTATION.
I LOVE THE FACT THAT, UM, YOU BROUGHT UP THE MSA SERVICE FEES.
UH, WE NEED, WE DO NEED TO INCREASE AND RENEGOTIATE THAT, THAT, UH, AGREEMENT, UH, RENTING THOSE VACANT LANDS AND HAVING FUTURE INVESTMENTS FOR OUR FUTURE GENERATIONS IS VERY IMPORTANT.
BRINGING OTHER BIG TIME DEVELOPERS INSTEAD OF THE SAME OLD GAS STATIONS DRIVE-THROUGHS AND VAPES, VAPE STORES WOULD BE AWESOME.
UH, BUT NOT AT THE EXPENSE OF OTHERS RATHER THAN, OR HARMING EXISTING COMMUNITIES OR BUSINESSES.
WHEN WE KNOW BETTER, WE DO BETTER.
NATIONAL CITY HAS A LOT OF POTENTIAL TO BECOME SUCH A GREAT CITY.
I DON'T THINK WE CAN WITH THE EXISTING, UH, MAYOR.
I THINK WE NEED A, A NEW, UH, LEADERSHIP, UH, TO HELP US GROW A STRONG ECONOMIC PLAN WITH CLEAR SPECIFIC GOALS AND AMBITION.
UH, WE NEED SOMEBODY THAT WANTS TO GROW THIS CITY.
I THINK WE'RE KIND OF STALE RIGHT NOW.
UM, IF OUR AIM IS TO, UH, INCREASE REVENUES, UH, FOR OUR FUTURE GENERATIONS, AND IF WE WANNA LEAVE THIS CITY BETTER THAN WE FOUND IT, WE NEED TO GET TO A LOT OF WORK.
THE FIRST THING THAT I WOULD DO IS TO DECREASE ALL THE WASTE, SUCH AS, UH, HOW MANY HOURS WERE SPENT ON THAT PROJECT, INCLUDING JOSIE'S AND THE MAYOR'S TIME FROM EACH ONE OF THE STAFF MEMBERS.
HOW MANY HOURS DID THEY PUT INTO THAT PROJECT AND DID WE GET PAID FOR IT? THE OTHER THING IS HOW MUCH MONEY HAS GONE UNNECESSARILY TO LAWSUITS, INCLUDING THE $5,500 YOU JUST SPENT IN MEDIATION WHERE NOTHING WAS RESOLVED.
ALL OF THESE MONEY COULD GO TOWARDS ALL OF THESE SERVICES THAT THESE LADIES JUST TALKED TO US ABOUT.
THEY'RE STRUGGLING TO HAVE FOOD IN THEIR PLATE, AND HERE WE ARE WASTING IT.
THANK YOU VERY MUCH, ALICIA MORRISON.
I REALLY APPRECIATE SCOTT'S, UM, UH, COMMENT ON CREATIVE WAYS OF TRYING TO MAKE THIS BETTER.
AND, AND, YOU KNOW, UM, SO I WAS LOOKING AT SOME OF THE STATISTICS AND IT INDICATED THAT YOU DO ONLY HAVE 58% OF YOUR PROPERTY TAX ACTUAL BUDGETED.
SO ONE OF THE CREATIVE THINGS THAT, THAT I THINK IS WHAT DOES THIS CITY DO FOR OPPORTUNITY FOR HOME OWNERSHIP? RIGHT NOW, YOU
[01:40:01]
GUYS HAVE A 63.8% RENTERS OCCUPIED TO ONLY 30.5%, UH, OWNER OCCUPIED.YOU KNOW, PEOPLE WANT AN OPPORTUNITY FOR EQUITY.
UM, ANOTHER THING IS, IS LIKE, YOU GOTTA THINK ABOUT WHAT IS APPEALING ABOUT MOVING TO NATIONAL CITY.
YOU KNOW, WHAT DOES NATIONAL CITY TO DO TO DRAW PEOPLE IN? BECAUSE YOUR POPULATION HAS GONE DOWN AND EVEN THOUGH IT'S, IT'S, IT HAD AN INCREASE, UM, OF HOUSEHOLD, UH, UH, POPULATION, THAT'S BECAUSE PEOPLE CAN'T AFFORD TO LIVE ON THEIR OWN.
YOU HAVE MULTI-GENERATIONAL HOME HOMES, UH, OCCUPYING.
UM, YOU KNOW, I, I MEAN, YOU KNOW, YOU HAVE FAMILIES THAT MY KIDS ARE ADULT CHILDREN AND THEY LIVE AT HOME WITH US.
YOU KNOW, AND I KNOW THAT PART OF, UM, WHAT'S GOING ON, AND IT'S THE INSTABILITY OF WHAT'S GOING ON WITH THE TARIFFS.
YOU KNOW, YOU HAVE A, A, A VERY SMALL INCREASE IN, IN SALES TAX REVENUE.
AND THAT'S SO UNPREDICTABLE RIGHT NOW WITH WHAT'S GOING ON WITH THE ECONOMY.
AND I'M READING IN THE PAPER THAT, YOU KNOW, WE'RE AT 61% THAT CLOSE TO A RECESSION AND IT'S SO, UH, UNSTABLE.
UH, DO WE HAVE ANYONE, DID WE HAVE ANYONE ON ZOOM? NO, WE DO NOT.
[5.1 Fiscal Year 2025-2026 Budget Workshop (Part 2 of 2)]
FOR EITHER CLARIFICATION QUESTIONS ON, UH, THE PRESENTATION OR, UM, QUESTIONS THEMSELF OR COMMENTS.WELL, I HAVE A THOUSAND QUESTIONS,
FIRST THANK YOU TO ALL OF OUR PUBLIC SPEAKERS.
THANK YOU FOR SHOWING UP AND, UH, GOING THROUGH THIS PRESENTATION WITH US, AND, UM, RECEIVING SO MUCH DETAIL AS FAR AS THE STATE OF THE CITY AND, UH, YOU KNOW, JUST HAVING THIS ABILITY TO BE PREPARED FOR WHAT'S COMING.
THANK YOU VERY MUCH TO STAFF FOR PUTTING THIS TOGETHER.
UH, MR. FOLTZ, THIS IS AMAZING.
THANK YOU FOR ALL OF THIS DETAIL.
I REALLY APPRECIATE ALSO THE TIME THAT YOU SPENT WITH US, UM, BEFORE THIS MEETING AND, AND HAVING US REALLY, YOU KNOW, BE PREPARED TO UNDERSTAND AND RECEIVE THIS INFORMATION.
THANK YOU MR. HO, FOR, UM, EVERYTHING THAT YOU HAVE BROUGHT TO US IN JUST WHAT TWO WEEKS IS, HAS IT BEEN TWO WEEKS AT NOW,
WELL, YOU KNOW, THE, THE EXPERIENCE HERE, IT'S BEEN TWO YEARS NOW, HUH? YEAH, TWO YEARS.
THE EXPERIENCE THAT, THAT WE, THAT, THAT I FEEL VERY CONFIDENT IN RELYING ON, UM, AS WE DO TACKLE THIS FISCAL YEAR THAT WE ARE, UH, COMING UP ON, UM, GIVES ME A LOT OF, UH, A LOT OF, UH, UM, YOU KNOW, UH, IT IT, LIKE YOU SAID IN THE VERY BEGINNING, IT'S NOT A ROSY PICTURE OR I THINK WHAT YOU'RE, WHAT YOU SAID IS, UH, INSPIRE YOU TO LOOK AT THIS SITUATION AS AN OPPORTUNITY.
WHAT A PERFECT SETUP TO THIS, UM, NEWS THAT WE ARE AT A 3.6, I THINK IT WAS MILLION DOLLAR DEFICIT FOR THIS YEAR, UM, AND THEN 8.2 PROJECTED FOR FISCAL YEAR, UH, 26.
RATHER THAN FOCUSING ON THOSE NUMBERS, WE ARE GIVEN THIS OPPORTUNITY TO LOOK AT IT.
WE'RE GIVEN THIS SITUATION TO LOOK AT IT AS AN OPPORTUNITY.
SO, UH, JUST THE, THE, THE MERE RHETORIC THAT YOU HAVE PRESENTED TO US, I THINK, UH, GIVES ME A LOT OF HOPE.
AND I HOPE IT GIVES EVERYBODY ELSE A LOT OF HOPE.
UM, YOU KNOW, THE, THE, IT'S NOT A SECRET.
THE STATE OF THE ECONOMY NATIONWIDE, PROBABLY WORLDWIDE, UM, IS HIGHLY CONCERNING.
AND IT IS NOT UNIQUE TO NATIONAL CITY, BUT WE ARE GOING TO DO OUR BEST WITH WHAT WE HAVE.
UH, AND I, I, I ABSOLUTELY SIGN UP TO DO THAT.
UH, AND DO, YOU KNOW, FOLLOW THE DIRECTION OF FOLKS THAT, THAT KNOW MORE THAN I DO.
UM, YOU KNOW, TAKE INTO ACCOUNT WHAT DECISIONS WE HAVE TO MAKE SO THAT WE CAN, UH, YOU KNOW, GET TO A BETTER PLACE.
AND THAT'S WHAT I, WHAT I'M HOPING TO DO.
AGAIN, I HAVE A THOUSAND QUESTIONS, BUT PERHAPS MAYBE I CAN SIT WITH OUR FINANCE DIRECTOR AND THEN JUST GET A BETTER IDEA BEFORE WE HAVE ANOTHER, UH, PUBLIC MEETING, UH, TO FULLY DIGEST EVERYTHING THAT'S GOING ON.
BUT JUST TO BEGIN REAL QUICK, UM, IF I'M NOT SURE IF WE'RE GONNA GET A CHANCE TO VIEW THE SLIDES AGAIN, BUT, UM, ON THE SLIDE
[01:45:01]
NUMBER THREE, THE GENERAL FUND EXPENDITURES, UH, DIRECTOR FOLTZ, I WANTED TO UNDERSTAND THE LINE ITEM THAT YOU MENTIONED.AGAIN, THESE ARE EXPENDITURES FROM LAST YEAR, JULY TO THIS APRIL.
UM, CURRENTLY THE IN BLUE FOR ADMINISTRATION.
IT SEEMS TO ME LIKE THAT NUMBER HAS REALLY JUMPED TO 6 MILLION.
AND THEN IT'S ACTUALLY GOING TO BALLOON UP TO 8.7 IS WHAT, YOU KNOW, FULL YEAR FOR 25, UH, FISCAL YEAR 2025.
CAN YOU EXPLAIN TO ME SORT OF WHAT ADMINISTRATION, WHY IS THAT NUMBER SO HIGH? WHY HAS IT INCREASED? UM, FROM YEARS PAST? SO IN 23 IT WAS 4.7, AND THEN 5.5 AND 24.
NOW YOU'RE SAYING IT'S, UH, 8.7 ONCE WE REACH THE END OF THIS FISCAL YEAR.
WHY, WHY? OKAY, SO THE ADMINISTRATION MAKES UP THESE DEPARTMENTS AS THE, UH, CITY COUNCIL, CITY CLERK, CITY MANAGER'S, OFFICE, CITY ATTORNEY, UM, HR, FINANCE, AND THEN, UM, YEAH, IT'S JUST SO SIX DEPARTMENTS, THOSE, THOSE WERE THE NUMBERS THAT WERE ADOPTED FOR THIS CURRENT FISCAL YEAR.
AND SO I'M JUST RETRANSLATE WHAT THEY ARE.
I, I DON'T KNOW A LOT OF THE DETAIL COMPARING FROM 24 TO 25, BUT IT'S MOSTLY THE, UM, UM, LABOR COSTS HAVE INCREASED.
AND SO THAT'S, THAT'S ONE OF THE AREA, UM, IN THAT AS WELL, FOR 25 COMPARED TO 24 WAS THE UAL PAYMENT.
AND SO ALSO, UM, THE BOND PAYMENTS ARE IN THERE, WHICH WERE NO, I'M, I WAS GONNA TAKE THAT BACK.
THE, THE BOND PAYMENTS ARE ALSO IN THE 24, ALSO IN THE 25 AS WELL.
BUT THE, THE 24 DID NOT HAVE THE UAL PAYMENT WHERE THE 25 DID.
UH, AND THEN AS WE ARE PROJECTING, AND I KNOW THIS IS PRELIMINARY, RIGHT, THIS IS THE VERY FIRST TIME WE'RE ACTUALLY LOOKING AT NUMBERS FOR 26.
HOW IS THAT NUMBER LOOKING LIKE FOR 26? IS IT GOING TO, AND I KNOW THAT YOU WERE SAYING WE'RE RESTRUCTURING SOME OF OUR, UM, PAYMENTS OR, OR OUR UAL PAYMENTS AND THIS AND THAT, SO THAT, UM, SOME OF THE FUNDS, LIKE, AGAIN, SOME OF THE QUESTIONS I HAVE ON THIS IS TO FULLY UNDERSTAND A LOT OF WHAT YOU JUST SAID REGARDING, UM, YOU KNOW, THE, UH, PENSION OBLIGATION BONDS AND THE UAL, THE NON-DEPARTMENTAL EXPENDITURES, UM, DUE TO SWITCH IN PAYMENT OF BONDS.
A LOT OF THIS, UH, I'M JUST TRYING TO UNDERSTAND, ARE WE EXPECTED TO SEE THAT NUMBER GO MUCH HIGHER AGAIN IN 26 FOR, FOR ADMINISTRATION? MM-HMM
UM, WELL ON, ON THIS SLIDE HERE, WE'RE SHOWING, UM, PROPOSED FOR, IT'S COMPARING 25 TO 26.
SO IT'S GOING UP 230,000 OKAY.
SO IT'LL STAY AT, AT A STEADY OR A LITTLE HIGHER.
BUT IT'S NOT GONNA GO UP 2 MILLION AS YOU SAW BEFORE, BECAUSE IT GOT IT.
STILL, YOU KNOW, IT IS RATHER HIGH COMPARED TO JUST THE PAST TWO YEARS.
AND YOU'RE SAYING THE REASON WHY IS BECAUSE WE PREVIOUSLY HAD APPROVED, UM, A WHOLE LOT MORE IN TERMS OF LABOR COSTS UNDER THAT CATEGORY? YES.
UM, SO IN PRIOR YEARS THERE WAS, UM, ADMINISTRATIVE SERVICES DIRECTOR AND, AND NOW THERE'S AN HR DIRECTOR AND A FINANCE DIRECTOR.
SO THERE'S BEEN POSITIONS THAT HAVE BEEN ADDED TO THOSE FIGURES COMPARED TO 24.
BUT THERE'S MORE, NOT JUST THOSE TWO POSITIONS, I'M SORRY, THERE'S OTHER POSITIONS THAT ADDED TO THIS, NOT JUST, UM, JUST A, JUST A FEW.
OH, YOU'RE SAYING MOSTLY THAT'S THE CAUSE THOSE TWO DIRECTOR POSITIONS.
UM, IS, IS THE, UM, AS I'M SITTING HERE, IS THE INCREASE IN THE, UH, COUNCIL'S BUDGET IN THE ADMINISTRATIVE AREA, OR IS THAT IN A SEPARATE AREA? AREA? IT IS, IT'S IN ADMINISTRATIVE.
SO IN 24, THE COUNCIL DID NOT HAVE THE DISTRICT, UM, ALLOTMENT OF A HUNDRED THOUSAND EACH OR IN 25 IT IS.
UM, ANOTHER BRIEF QUESTION HAS TO DO ON SLIDE NUMBER FIVE, THE BUDGET HIGHLIGHTS, STATUS QUO BUDGET, NO ADDITIONAL STAFFING.
IT'S THE VERY FIRST BULLET POINT.
SORRY, BUDGET HIGHLIGHTS, NO ADDITIONAL STAFFING.
SO CAN YOU EXPLAIN TO ME WHAT THAT MEANS? BECAUSE WE HAVE 22 OPEN POSITIONS THAT ARE APPROVED BUT NOT FILLED? THAT'S CORRECT.
[01:50:01]
IN THE CURRENT YEAR BUDGET, I DON'T HAVE THE EXACT NUMBER WITH ME, BUT THERE'S ROUGHLY, UM, I THINK 390 SOME FULL-TIME POSITIONS.WE DID NOT INCREASE THAT POPULATION.
IT'S THE SAME POPULATION THAT WE'RE BUDGETING FOR NEXT YEAR.
THE ONLY DIFFERENCE IS AS COALS WERE OFFERED TO CERTAIN INDIVIDUALS WITHIN THOSE GROUPS, THAT COST IS INCREASING FOR NEXT YEAR.
BUT AS FAR AS ADDING ADDITIONAL FTES TO OUR ENTIRE POPULATION, OUR ENTIRE WORKFORCE, AS FAR AS FULL-TIME EMPLOYEES, IT HAS NOT INCREASED.
SO THAT NUMBER, YOU SAID 300, WHAT IT WAS IT SIX 60 SOMETHING 396? I'M NOT, LET'S SAY THREE 90.
I CAN'T REMEMBER EXACT NUMBER.
I KNOW, BUT LET'S JUST SAY THREE 90 FOR NOW.
DOES THAT INCLUDE THE 22 POSITIONS THAT ARE NOT FILLED? YES, IT DOES.
SO DOES THAT MEAN WE CAN MOVE FORWARD AND FILL THOSE POSITIONS BECAUSE THEY ARE BUDGETED? THAT'S CORRECT.
IT WOULD JUST BE NOT NO NEW POSITIONS, NO NEW POSITIONS.
SO THERE, SO YOU'RE KIND OF SAYING THERE, UM, YOU KNOW, IT IT, IT'S NOT NECESSARY TO FREEZE STAFFING OR, OR FREEZE HIRING OF THOSE 22 POSITIONS? NO, BECAUSE WE, WE'VE ALREADY ACCOUNTED IT.
I JUST IDENTIFY THAT THOSE POSITIONS HAVE NOT BEEN FILLED.
OF COURSE, IF WE DON'T FILL THOSE POSITIONS, IT WOULD HELP THE NUMBERS, RIGHT? THAT'S CORRECT.
CAN I ADD SOMETHING TO THAT? YEAH.
SO, UM, I'VE GIVEN DIRECTION, UM, BECAUSE OF THE SITUATION THAT, UM, AND IN MANY CASES, THOSE VACANT POSITIONS AREN'T EVEN READY TO FILL.
AND IN THE CASE THAT WE DESCRIBED, UH, ABOUT THE POLICE DEPARTMENT, WE'RE CONSTANTLY IN A SITUATION WHERE THAT, UM, NOT WHERE WE'RE AT FINANCIALLY RIGHT NOW, BUT THIS IS THE SAME PROBLEM THAT'S GOING ON IN MANY CITIES.
IT WOULD BE A GREAT DAY IF EVERYBODY HAD THE CAPABILITY TO FILL THEIR POLICE DEPARTMENT OPEN POSITION.
IT'S JUST REALITY IS THAT THE TURNOVER AND RECRUITING AND EVERYTHING IS A PHENOMENON WHERE WE'VE HAD OPEN POSITIONS LIKE THAT FOR AN EXTENDED PERIOD OF TIME.
UM, BUT RIGHT NOW, UM, ANY POSITION THAT WE'RE LOOKING AT HAS TO COME THROUGH THE CITY MANAGER TO EVALUATE EVEN IF YOU DID APPROVE THE BUDGET.
AND IT'S REASON FOR THAT IS BECAUSE OF THE, THE NATURE OF THE SERIOUSNESS OF THE SITUATION WE'RE IN.
SO WHEN WE'RE IN CLOSED SESSION TALKING ABOUT LABOR STUFF, AND YOU CAN GIMME MORE DIRECTION, AND, BUT THAT'S WHERE WE ARE RIGHT NOW.
UM, AND, UH, WITH THE EXCEPTION OF, THERE'S A FEW THAT, UM, WE DID RECRUIT FOR, OR WE'RE IN THE, RIGHT, IN THE MIDDLE OF THE PROCESS.
THERE'S A COUPLE, UH, CAN YOU GO TO SLIDE 21? THERE'S A COUPLE IN YOUR GUYS' AREAS.
AND, UH, AND WE HAVE, YOU KNOW, WE HAVE A DEPARTMENT, I THINK ONE OR TWO DEPARTMENT HEAD ONE.
SO I, I'M, ARE YOU REFERRING TO SOME OF THESE ON THIS LIST? UM, LET'S SEE.
SO RIGHT NOW THE, UM, UH, LET'S SEE, I THINK WE HAVE THE COMMUNITY SERVICES DIRECTOR POSITION OPEN RIGHT NOW, IF I'M NOT MISTAKEN.
UM, AND THEN, UH, WE'RE ALSO DOING THE HR, UH, DIRECTOR THAT'S OPEN RIGHT NOW.
AND WE, WE HAVE PEOPLE THAT WE'RE DOING THE RECRUITMENT FOR THAT.
UH, BUT AT THE SAME TIME, AND WE'RE STILL MOVING FORWARD, BUT AT THE SAME TIME, THAT'S ONE OF THE CRITICAL NEEDS FOR US TO HAVE THAT CLOSED SESSION.
SO WE CAN TALK ABOUT THE STRATEGICALLY, UM, UH, WELL, I WON'T BELABOR THIS POINT, BUT I DO LOOK FORWARD TO HAVING A STRATEGIC DISCUSSION JUST AS YOU SAID IT, SCOTT, ABOUT THESE CURRENT VACANT POSITIONS THAT ARE ALREADY ACCOUNTED FOR ON OUR BUDGET.
UM, BECAUSE I AM VERY SENSITIVE TO, YOU KNOW, THE NATURE OF NEEDING FOLKS TO COME AND HELP US, YOU KNOW, ALLEVIATE PERHAPS SOME OF THE WORK THAT OUR CURRENT STAFF IS DOING RIGHT NOW, UH, AND FEELING THE BRUNT OF, UM, YOU KNOW, THE AMOUNT OF WORK THAT WE CREATE FOR, FOR OUR STAFF AND, AND, UM, YOU KNOW, HAVING VACANT POSITIONS THAT ARE NOT FILLED FOR ONE REASON OR ANOTHER, UM, WHEN PERHAPS IT WOULD BE STRATEGIC TO FILL THEM VERSUS KEEP THEM UNFILLED.
SO I LOOK FORWARD TO THAT DISCUSSION.
UM, AND LET ME SEE IF I HAVE ANY, OKAY.
I'LL, I'LL END WITH THIS 'CAUSE I DON'T WANNA TAKE UP TOO MUCH TIME, BUT I WILL SCHEDULE MORE TIME WITH YOU, MR. FOLTZ.
UH, UH, SLIDE 24, THE RESERVE BALANCE, UH, SLIDE.
SO THERE'S FIVE FUNDS ON HERE THAT, UM, SUMMARIZE OUR RESERVES.
IS THIS THE, THE, IS, IS THIS ALL OF OUR RESERVES? ARE THERE OTHER RESERVES THAT AREN'T ON THIS SLIDE? THESE ARE THE RESERVES THAT,
[01:55:01]
UM, APPLY TO THE GENERAL FUND.WE HAVE OTHER, THESE APPLY TO THE GENERAL FUND FUNDS.
FOR EXAMPLE, THE GENERAL LIABILITY AND WORKERS' COMP FUND.
THERE'S A SEPARATE POLICY OF HOW MUCH RESERVES SHOULD BE IN THAT FUND AS WELL.
IN CASE OF, YOU KNOW, A LOT OF EXCESS CLAIMS. FOR EXAMPLE, OUR GENERAL LIABILITY WERE, WE'RE LIABLE FOR THE FIRST 250,000 OF A CLAIM, AND WORKERS' COMP WERE LIABLE FOR THE FIRST 500,000 PER CLAIM.
SO THERE'S NEEDS TO BE A RESERVES ESTABLISHED IN THAT, BUT THIS IS ONLY APPLICABLE TO THE GENERAL FUND.
AND OTHER RESERVES WOULDN'T, ARE NOT TO THE GENERAL FUND, THAT'S WHY THEY'RE NOT ON THIS LIST? THAT'S CORRECT.
BUT THIS IS ALL OF THE, THE, THE TOTAL OF FIVE ARE THE ONES THAT WOULD, UM, APPLY TO THE GENERAL FUND.
AND, UM, THE WAY THAT YOU DESCRIBED, YOU KNOW, THE TARGETS FOR EACH OF THESE, IT SOUNDED LIKE TO ME THAT, UH, ALL OF THEM ARE UNDER TARGET EXCEPT FOR THE UNASSIGNED FUND BALANCE.
BUT AS YOU DETAILED A COUPLE OF SLIDES NEXT IS ACTUALLY THAT IS QUICKLY GOING TO BE DEPLETED IF WE, UH, CONTINUE, YOU KNOW, IN THE DIRECTION WE'RE GOING WITHOUT GENERATING SOME TYPE OF REVENUE.
UH, IS THAT CORRECT? THAT'S CORRECT, YES.
SO AGAIN, THE UNASSIGNED FUND BALANCE, RIGHT NOW, THE TOTAL IS 24.5, THE TARGET OF WHICH IS 8.1.
HOWEVER, EVEN THOUGH IT IS A VERY HEALTHY, YOU WOULD SAY IT'S A HEALTHY BALANCE COMPARED TO WHAT OUR TARGET, YOU KNOW, PER OUR MUNICIPAL CODE SAYS IT SHOULD BE AT, DESPITE IT BEING RATHER HEALTHY, IT ACTUALLY WOULD DRY UP VERY QUICKLY, UM, IF, IF, IF, YOU KNOW, UNLESS WE TAKE CERTAIN MEASURES.
UH, I JUST WANNA POINT TO THE FACT THAT WE HAVE RESERVE BALANCES.
WE HAVE RESERVES, RIGHT? WE ARE TRYING OUR BEST TO PREPARE FOR LIKE RAINY DAY, RIGHT? UM, AND, UH, I THINK DESPITE HOW DIFFICULT OR HOW EASY, DESPITE HOW EASY IT MAY FEEL THAT WE CAN DIP INTO THESE RESERVES.
IN FACT, I WOULD PREFER THAT WE MAINTAIN OUR RESERVES, UM, NOT UTILIZE THEM, UH, UNLESS IT TRULY IS A DIRE NEED SITUATION TO UTILIZE RESERVES BECAUSE WE DON'T WANNA END UP IN A WORSE POSITION SIMPLY BECAUSE WE WANNA ALLEVIATE TODAY.
BUT THEN, YOU KNOW, NEXT YEAR OR THE FOLLOWING YEAR OR THE YEAR NEXT, UM, WE WOULD BE, YOU KNOW, UH, IN A WORSE SHAPE.
UH, I DON'T WANNA BE FOOLISH IN HOW WE USE OUR RESERVES.
UM, AND THAT'S, THAT'S ALL I'M SAYING.
UM, I, I WILL END MY QUESTIONS FOR NOW.
LET ME ASK JUST A QUICK QUESTION, THEN I'LL GET TO THE OTHER, UH, COUNCIL MEMBERS.
THE NUMBERS THAT ARE BE, THAT WE'RE LOOKING AT HERE ARE WHAT IS BASICALLY PRESENT BEFORE US NOW, AND THAT WE ARE, THAT WE CAN EXTRAPOLATE OUT INTO THE NEAR FUTURE.
UH, THE, WHEN WE TALKED ABOUT THE, UH, THE AMOUNT AS FAR AS, WHICH IS THE LARGEST PART OF OUR BUDGET, AS FAR AS LIKE SALARIES, THINGS ON THAT LINE, THAT, THAT BASED, THAT DID INCLUDE THE COLAS AND EVERYTHING ELSE.
THAT WAS IN THE 24, THIS LAST YEAR'S BUDGET, THE ONE WE'RE CURRENTLY IN? THAT'S CORRECT.
BUT IT DOES NOT INCLUDE ANYTHING.
'CAUSE I KNOW WE'RE IN LABOR NEGOTIATIONS.
ANYTHING THAT WOULD HAPPEN JULY 1ST, WHICH IS THE BUDGET WE'RE LOOKING AT NOW, CORRECT? CURRENTLY BEFORE IT'S TONIGHT.
SO, SO, SO THAT IS STILL, THAT WOULD STILL BE, THERE'S GONNA BE SOMETHING ADDED ON.
WE JUST DON'T KNOW WHAT THAT'S CORRECT.
THANK YOU, UH, WITH THAT, UH, MEMBER RODRIGUEZ.
UM, JUST OUT OF CURIOSITY, UH, STAYING ON THIS SLIDE, PERCENTAGE WISE, CAN YOU, UM, JUST ENLIGHTEN US ON OUR POLICIES OF EACH OF THOSE RESERVES AND WHAT, WHAT PERCENTAGE OF OUR BUDGET THAT SHOULD BE? OKAY.
UM, IF WE LOOK AT THE ECONOMIC CONTINGENCY RESERVE, OUR POLICIES CURRENTLY SAYS THAT WE SHOULD MAINTAIN 20% OF OUR CURRENT OPERATING, UM, OUR, EXCUSE ME, 20% OF OUR CURRENT OPERATING EXPENDITURES WITHIN THE GENERAL FUND.
SO IF WE, RIGHT NOW, OUR BUDGET IS PROJECTED TO HAVE AN OPERATING EXPENDITURE OF 81 MILLION, 20% OF THAT WOULD BE 16.2 MILLION.
SO AT, AT THIS POINT, WE ARE BELOW THAT TARGET.
UM, IF WE WERE TO REDUCE OUR OPERATING EXPENDITURES DOWN TO 70, YOU KNOW, OBVIOUSLY THAT PERCENT GOES DOWN.
SO, UM, FACILITY MAINTENANCE, OUR POLICY SAYS THAT IT SHOULD MAINTAIN 4.5% OR IDENTIFYING OPERATING EXPENDITURES.
AGAIN, IF WE USE THE CURRENT DATA THAT WE HAVE THAT WE'RE PROJECTING $81 MILLION EXPENDITURES WITHIN THE GENERAL FUND, THAT TARGET WOULD BE 3.8 MILLION FOR, UM,
[02:00:01]
FACILITY MAINTENANCE.UM, RESERVE THE PENSION TRUST FUND, WHICH IS IN A SEPARATE TRUST, AND, UM, IT CAN ONLY BE USED FOR PENSION LIABILITIES.
THE POLICY STATES THAT IT SHOULD HAVE TWO YEARS OF RESERVES.
UNFORTUNATELY, AS OUR, IF WE TURN, LEMME SEE.
IF WE TURN BACK TO, TO THIS PAGE IN JULY, WE WILL PAY THE 2026 UNFUNDED LIABILITY OF 3 MILLION BY POLICY LANGUAGE.
WE SHOULD HAVE TWO FUTURE YEARS IN THAT.
SO THAT WOULD REQUIRE HAVING A RESERVE OF THE 2027 AND THE 2028.
SO WE'RE LOOKING AT $10 MILLION THAT SHOULD BE IN THAT CATEGORY BASED ON THE POLICY.
AND THEN LASTLY, OUR OPEP TRUST.
THE POLICY SAYS THAT WE SHOULD MAINTAIN 80% OF OUR OPEP LIABILITY.
THE MOST RECENT, UM, NUMBERS THAT WE HAVE SAYS THAT BASICALLY THAT FUND IS ABOUT $300,000 SHORT FROM WHERE IT SHOULD BE.
SO, SO THESE ARE PROJECTIONS BASED ON EXPENDITURES AND OUR CURRENT INCOMES.
SO IF WE DO NOTHING, THIS IS THE TRAJECTORY THAT WE'RE TAKING.
SO WE HAVE A COUPLE OF DIFFERENT OPTIONS, UM, RUN A TIGHTER SHIP.
WHICH ARE SOME OF THE SUGGESTIONS THAT WE'RE, UH, ARE BEFORE US, AND FIND WAYS TO GENERATE MORE REVENUE, RIGHT? MM-HMM
SO, UM, I THINK THAT'S, YOU KNOW, WHEN I WAS AN ORGANIZER AT SDOP, WE TALKED ABOUT, UM, UH, BUDGETS BEING REALLY OUR MORAL COMPASS.
WHAT DO WE WANNA INVEST IN? WHAT DO WE WANT TO DO? AND I THINK OUR BUDGET SHOULD BE A REFLECTION OF THAT.
AND I THINK THERE HAS TO BE A SHIFT IN OUR CITY TO MAKE SURE THAT WE CONTINUE TO INVEST, BECAUSE THE NOTION OF CITIES OR GOVERNMENTS IS NOT TO SIMPLY SAVE AS MUCH MONEY AS POSSIBLE AND ACCUMULATE AS MUCH MONEY AS POSSIBLE.
THE PURPOSE IS TO ACTUALLY ASSIST RESIDENTS COMMUNITY THAT PAY OUR TAXES AND CONTINUE TO INVEST IN ADDITIONAL FUTURE INVESTMENTS THAT WILL BRING IN RETURNS.
SO, UM, YOU KNOW, EVERYTHING IS, IS INTERTWINED IN ONE WAY OR ANOTHER.
I HAVE SEEN OVER THE LAST COUPLE YEARS, OUR COMMUNITY SERVICES DEPARTMENT DO EXCEEDINGLY WELL AND HAVE SO MANY STUDENTS.
AND OVER THE LAST TWO BUDGET CYCLES, WE HAVE BUDGETED REC CENTER SUPERVISOR POSITIONS IN ORDER TO PROVIDE MORE SERVICES FOR OUR COMMUNITY, WHICH DESPERATELY NEEDS IT.
AND I AM, UH, DISAPPOINTED TO SAY THE LEAST, THAT WE HAVEN'T HIRED THOSE POSITIONS.
I THINK THEY'RE CRITICAL IN ORDER FOR US TO MAINTAIN THE PROGRAMMING NEEDED FOR OUR KIDS AND OUR FAMILIES.
SO I REALLY LOOK FORWARD TO SOME OF THOSE POSITIONS BEING FILLED.
THEY'RE NOT MANAGEMENT OR DIRECTOR POSITIONS, AND THEY HAVE BEEN ON HOLD FOR ABOUT A YEAR.
SO I, I, I REALLY LOOK FORWARD TO THOSE POSITIONS BEING FILLED.
AGAIN, THINKING OF OUR BUDGET AS A MORAL COMPASS.
THIS IS PROVIDING SERVICES FOR OUR KIDS INSTEAD OF THEM BEING IN TROUBLE OR, OR INSTEAD OF THEM, UM, UH, STEERING OFF THE PATH.
WE WANT TO KEEP THEM ACTIVE, ENGAGED, BUSY, PRODUCTIVE.
AND THAT IS WHAT A LOT OF THIS PROGRAMMING DOES.
AND SO I THINK, I THINK THAT'S CRITICAL FOR US TO CONTINUE TO FOCUS ON.
UM, I'M SO GRATEFUL SOMEBODY BROUGHT HOUSING, MS. MORRISON, I BELIEVE, UH, 'CAUSE HOUSING IS IMPERATIVE TO THE FUTURE OF OUR CITY, AND IT'S DIFFICULT TO, TO DISCONNECT THE CONVERSATION OF HOUSING TO OUR BUDGET.
AND THE REASON I SAY THAT IS BECAUSE, AS MS. MORRISON STATED VERY CLEARLY, WE HAVE HAD AN INCREASE IN UNITS BEING BUILT IN THE CITY, BUT WE'VE ACTUALLY HAD A DECREASE IN POPULATION.
SO, AND, AND A PART OF THAT DECREASE IN POPULATION IS A DECREASE IN STUDENT ENROLLMENT AT OUR NATIONAL SCHOOL DISTRICT OF 12% OVER THE LAST SEVEN YEARS.
SO WHAT DO WE ATTRIBUTE THAT TO? 'CAUSE YOU KNOW, MY, MY KIDS ARE PART OF THE SCHOOL DISTRICT.
I TALK TO PARENTS AND IT, IT'S, IT'S NOT, UM, UH, I THINK FARFETCHED TO KNOW AND REALIZE THAT A LOT OF PARENTS MOVE OUT OF THE AREA BECAUSE IT'S VERY EXPENSIVE.
THEY'RE PRICED OUTTA THE MARKET, THEIR RENTS GO UP EXPONENTIALLY.
AND OFTENTIMES THEY HAVE TO MAKE TOUGH CHOICES OF STAYING IN NATIONAL CITY, RENTING AN APARTMENT, A NEW APARTMENT, OR MOVING TO EL CAJON, MOVING TO EAST COUNTY, OR MOVING TO SAN CIRO, OR MOVING TO TIJUANA, WHICH A LOT OF STUDENTS DO FROM OUR NATIONAL SCHOOL DISTRICT SYSTEM.
BUT THOSE ARE PARENTS THAT USED TO LIVE HERE.
SO IT'S DIFFICULT TO, UM, DISCONNECT THE DIRECTION OF OUR CITY AND THE IMPACTS THAT WE'RE HAVING IN THE COMMUNITY AND THE BUDGET AS A WHOLE.
SO, I, I'M A BIG PROPONENT OF BUILDING WEALTH FOR OUR COMMUNITY.
AND THE ONLY WAY TO DO THAT IS REALLY TO BUILD HOME OWNERSHIP OPPORTUNITIES, WHICH BRINGS US BACK TO ONE OF THE POINTS THAT WAS SUGGESTED EARLIER.
WE NEED TO DO SOMETHING ABOUT OUR EMPTY LOTS.
[02:05:01]
DOING SOMETHING WITH OUR, UM, OWN NATIONAL CITY PROGRAM TO BUILD HOME OWNERSHIP ON CITY PROPERTY, UH, WHERE WE'LL BRING IN ADDITIONAL REVENUE FOR THE CITY.WE'LL BRING HOUSING OPPORTUNITIES FOR NATIONAL CITY FAMILIES TO BE ABLE TO BUY ON CITY PROPERTY.
BUT THERE'S SO MANY LOTS AROUND THE CITY THAT ARE UNDERUTILIZED, THAT ARE EMPTY, THAT ARE BLIGHT TO OUR NEIGHBORHOOD THAT WE MUST BE PROACTIVE IN INVESTING IN.
SO WE, YOU KNOW, UM, WE CAN'T, WE CAN'T JUST, I THINK, HAVE RESERVES SITTING THERE SOMEWHERE.
I THINK WE, WE HAVE TO MAKE SURE THAT WE UTILIZE THEM IN A VERY WISE, STRATEGIC, STRATEGIC MANNER IN ORDER FOR US TO CONTINUE TO INVEST, WHETHER IT'S IN HOUSING OR IN BUSINESS OPPORTUNITIES.
SO, UM, ANOTHER, UH, THING I WAS GONNA MENTION, UM, INVESTING IS ABOUT INVESTING IN OUR COMMUNITY, RIGHT? SO WE, WE HAD FOLKS COME IN TO TALK ABOUT, UM, A TIME THAT HAS BECOME VERY DIFFICULT IN MANY PEOPLE'S LIVES WHERE PRICES ARE INCREASING LEFT AND RIGHT, WHERE BASIC, UM, FOOD PRICES ARE INCREASING LEFT AND RIGHT.
AND I, I VOLUNTEER, UM, NOT AS OFTEN AS SOME PEOPLE WOULD LIKE ME TO, BUT I DO VOLUNTEER AT OUR NUTRITION CENTER.
AND IT'S, IT'S, UH, IT'S SO LOVELY TO SEE OUR COMMUNITY COME TOGETHER.
IT'S BECOME A HUB OF NOT JUST PEOPLE TO GO AND EAT FOOD, ALTHOUGH THAT'S THE PRIMARY REASON.
IT ACTUALLY IS A, A, A VERY, UM, UH, IT'S A MELTING POT OF INDIVIDUALS COMING TOGETHER, HANGING OUT.
THEY LOVE TO HAVE THEIR COFFEE.
UH, BUT IT, FIRST AND FOREMOST, IT PROVIDES FOOD AND NUTRITION TO SENIORS THAT OFTENTIMES HAVE TO JUST MAKE ENDS MEET.
UM, EVERYTHING KEEPS RISING, AND THEIR SOCIAL SECURITY CHECKS DO NOT.
AND, AND, AND SO THEY ARE STRAPPED FOR, UH, UM, UH, FOR CASH AT A TIME WHERE THEY NEED IT THE MOST.
AND I THINK IT WOULD BE A DISSERVICE TO OUR COMMUNITY TO ACTUALLY CUT PROGRAMMING FOR THEM AT A TIME WHERE THEY DESPERATELY NEED IT.
SO I, I THINK THAT'S SOMETHING THAT I CONSTANTLY THINK ABOUT.
UM, I THINK WE NEED TO MAKE SURE THAT WE SUPPORT, UM, UH, FAMILIES BEING TORN APART BY DEPORTATIONS AND DETENTIONS.
IT'S SOMETHING, AGAIN, THAT WE MAY NOT BE EXPERIENCING AT THIS MOMENT, BUT FAMILIES IN OUR COMMUNITY ARE, AND THESE ARE FAMILIES, WHETHER THEY'RE DOCUMENTED OR NOT, THEY PAY TAXES, WHICH PAY ALL OF OUR SALARIES, AND IT'S SOMETHING THAT THEY ARE LIVING THROUGH.
SO I THINK THAT'S IMPORTANT AS WELL.
UM, AND AT THE SAME TIME, I THINK WE NEED TO CONTINUE TO WORK WITH OUR PORT, UH, TO UPDATE OUR MSA AGREEMENT, WHICH IS SOMETHING THAT MY COLLEAGUES HERE HAVE TAKEN A LEAD ON, UH, VERY GRATEFUL AND SUPPORTIVE.
WE NEED TO WORK QUICKER TO BUILD HOTELS IN OUR, IN OUR CITY, UM, AT OUR, UH, WITH OUR NATIONAL CITY BALANCED PLANT AND ON 24TH STREET, THOSE ARE EMPTY LOTS THAT HAVE BEEN THERE FOR 20 YEARS.
THE CITY HAS HAD THEM IN POSSESSION, RIGHT? IT'S, I THINK IT'S TIME TO LIKE REALLY JUST GET TO WORK AND CONTINUE TO INVEST AND MOVE AS QUICKLY AS POSSIBLE SO WE CAN DEVELOP AND AGAIN, BRING IN REVENUE FOR THE CITY, BRING IN JOBS TO THE CITY, RIGHT? SO I THINK WE NEED TO REVAMP OUR ECONOMIC DEVELOPMENT OPPORTUNITIES IN OUR CITY CONNECT BUSINESSES, UM, WITH OUR TEAMS TO PROPERLY AND PROCEDURALLY DEVELOP OUR CITY THE RIGHT WAY WITH INPUT FROM THE COMMUNITY EVERY SINGLE TIME, BECAUSE IT'S SOMETHING THAT I THINK LACKS, BUT THERE'S A LOT OF OPPORTUNITY TO DO.
I THINK THERE'S A LOT OF OPPORTUNITY FOR ADDITIONAL TOT TAXES.
I MEAN, WE MENTIONED EARLIER I OPPORTUNITIES.
UM, TOT IS ONE OF THE LOWEST IN THE COUNTY AT 8%, BUT THERE'S OPPORTUNITY FOR US TO INCREASE THAT, WHICH WOULD INCREASE OUR GENERAL FUND AND SUPPORT OUR WORKERS AND SUPPORT OUR PROGRAMMING THAT WE DESPERATELY NEED.
UM, ADDITIONAL THINGS LIKE VACANT PROPERTY TAXES.
AGAIN, THERE'S SO MANY, UH, VACANT LOTS AROUND THE CITY.
AND IF THAT MEANS THE CITY USING SOME OF OUR RESERVES IN ORDER FOR US TO BE AGGRESSIVE IN DEVELOPMENT AND WITH COMMUNITY INPUT AND, AND MAKE SURE THAT IT'S DONE.
SO IN A PROCEDURAL WAY, I THINK WE MUST, WE MUST DO IT.
UM, I THINK WE MUST LOOK AT READJUSTING OUR NATIONAL CITY BUSINESS LICENSE FEES FOR BUSINESSES THAT ARE MAKING OVER $5 MILLION A YEAR OR SO.
I'M TALKING ABOUT LARGE CORPORATIONS THAT OFTENTIMES PAY THE SAME, UH, NATIONAL CITY BUSINESS LICENSE FEE AS A REGULAR BUSINESS RIGHT DOWN THE STREET, RIGHT? THAT'S MOM AND POP AND OWNER OPERATED.
SO I DON'T THINK IT'S FAIR TO COMPARE WALMART PER SE, AND, YOU KNOW, A JEWELRY STORE INSIDE OF OUR PRICE BREAKERS.
AND SO I THINK, I THINK THAT NEEDS TO BE ADJUSTED.
THAT'S HAPPENED IN OTHER CITIES.
I LOOK FORWARD TO MAYBE LOOKING AT SOME OF THOSE ADJUSTMENTS.
I LOOK FORWARD TO REVISITING THE CANNABIS LICENSE, UM, UH, IN THE COMING YEAR, UM, WHETHER IT'S THE SUMMER FALL, BUT, UH, WE HAVE HAD, UM, JUST ONE OPERATOR OPEN, LIKELY OF A COUPLE OF OTHERS THIS YEAR.
BUT I THINK IT'S, WE, WE CONSTANTLY HAVE TO REVISIT THEM.
AND AS WE LOOK AT MORE ECONOMIC OPPORTUNITIES DOWN THE LINE, WE HAVE TO JUST BE READY AND PREPARED.
[02:10:01]
UM, I ALSO THINK WE HAVE AN OPPORTUNITY TO, UH, FREEZE MANAGEMENT AND DIRECTOR POSITIONS AT THE CITY, BUT ONLY, UM, UM, REOPEN THEM FOR REPLACEMENTS, RIGHT? WHEN SOMEBODY, UM, UH, IS RETIRING OR LEAVING ELSEWHERE, IT'S IMPERATIVE THAT WE FILL THOSE POSITIONS AS SOON AS POSSIBLE.BUT AT THE SAME TIME, JUST, JUST FREEZE MANAGEMENT AND ADDITIONAL DIRECTOR POSITIONS.
AND LASTLY, I'LL SAY THIS, YOU KNOW, UM, OTHER CITIES AROUND US CONTINUE TO GROW, AND IT'S EASY TO SAY CHULA VISTA GROWS BECAUSE THEY HAVE MORE LAND.
BUT CHULA VISTA ALSO REDEVELOPS.
AND, YOU KNOW, OVER THE LAST, UH, 10 YEARS, THEY'VE PUT AT LEAST FOUR INITIATIVES ON THE BALLOT AND CONTINUE TO REINVEST IN THEIR COMMUNITY.
WHETHER IT'S THE GAYLORD PROJECT THAT'S GONNA BRING IN REVENUE FOR DECADES TO COME, OR NOW THEY'RE TALKING ABOUT A HUMONGOUS TENNIS AND SOCCER, UH, COMPLEX SOUTH OF THAT.
AGAIN, IT'S AN INVESTMENT BY THE CITY, UM, OR CONTINUING TO GROW EASTBOUND, WHICH THEY CONTINUE TO DO.
BUT WE NEED TO HAVE THE SAME APPROACH.
WE NEED TO HAVE LIFE TO, TO, TO BE ABLE TO GROW AS A CITY, AND WE NEED TO PUT OUR MONEY WHERE OUR MOUTH IS AND CONTINUE TO ACTIVELY DEVELOP OUR COMMUNITY.
UM, WE CAN'T JUST SIT AROUND AND DO NOTHING.
WHILE WE KNOW OUR RESERVES ARE GOING TO DEPLETE OVER THE NEXT FEW YEARS, WE MUST BE PROACTIVE AND WE MUST BRING IN ADDITIONAL BUSINESS, AND WE MUST BRING IN ADDITIONAL REVENUE.
SO I LOOK FORWARD TO CONTINUE TO MAKE ALL OF THESE ADDITIONAL INVESTMENTS AT THE CITY, AND THEN SOME, BECAUSE WE DON'T HAVE A CHOICE.
AND, UH, I LOOK FORWARD TO WORKING MORE WITH COMMUNITY, WITH OUR LABOR, LABOR GROUPS, INCLUDING OUR CITY WORKERS, OUR, OUR POA, OUR FIREFIGHTERS TO FIND REVENUE SOURCES AND MAKE SURE THAT WE BRING THEM INTO INTERNATIONAL CITY.
UM, AGAIN, IT'S THOSE OTHER COMMUNITIES THAT CONTINUE TO GROW, DO THAT.
EVERYBODY COMES TOGETHER AND THEY FIND A WAY TO BRING IN ADDITIONAL REVENUE IN ORDER FOR THE CITY TO GROW.
SO, UH, I KNOW THAT WAS A VERY LONG COMMENTS, SCOTT.
I TOOK A QI I'M A MAN OF FEW WORDS AS WELL, BUT
UH, BUT, UH, BUT THANK YOU ALL SO MUCH.
THOSE ARE ALL MY COMMENTS, UH, AND SUGGESTIONS.
JUST LIKE WHAT OUR ICM SAID, BUSINESS, YOU HAVE TO PAY MONEY TO MAKE MONEY, AND WE CANNOT LEAD THIS ORGANIZATION WITH FEAR.
WE NEED TO BE ASSERTIVE AND INVEST IN OUR PEOPLE FIRST, SO THEN THEY CAN HELP US.
YOU KNOW, I MEAN, TAKE CARE OF THE NECESSARY SERVICES THAT WE, WE HAVE TO BRING FORTH TO OUR PEOPLE WHO WE PLEDGE TO SERVE.
I UNDERSTAND LOOKING AT ALL THESE PAPERWORKS, THANK YOU, BRUCE, FOR COMING ALL THESE NUMBERS I KNOW FROM YOUR MID, UM, YEAR BUDGET REPORT TO THIS, UM, DRAFT, THERE ARE NUMBERS THAT MOVED, AND THAT'S WHAT THIS PAPERWORK IS.
IT'S A LIVING DOCUMENT THAT WE CAN REASSESS, UM, YOU, UM, AMEND OR LOOK INTO.
UM, YOU NO MEAN OPPORTUNITIES THAT WE CAN, UM, WE CAN MAKE THROUGH THE 12 MONTH PERIOD OF, OF OUR BUSINESS AS A CITY.
YOU KNOW, I MEAN, WE'RE LOOKING AT A 3.3 MILLION PROJECTED, UM, DEFICIT FOR 25.
BUT I AM CONFIDENT THAT WE CAN YOU, I MEAN, GET TO GET TO A, A, UH, A BETTER NUMBER WHEN WE REINVEST INTO OUR COMMUNITY, WE HAVE THE FUNDS TO MAKE IT HAPPEN.
WE HAVE, JUST LIKE WHAT SCOTT SAID, WE HAVE CONTRACTS TO REVISIT.
WE HAVE OPPORTUNITIES TO, UM, TO REVISIT, TO MAKE SURE THAT WE ARE REALLY TAPPING ON THOSE OPPORTUNITIES THAT WE HAVE.
VACANT PROPERTY TAX TS YOU KNOW, I MEAN, UM, FRANCHISE FEES THAT HAS NEVER BEEN REVISITED FOR DECADES.
UM, YOU KNOW, I MEAN OUR, OUR ECONOMIC DEVELOPMENT, UM, YOU KNOW, I MEAN SOME SERVICES THAT, UM, WE ARE ALLOWING THIS, THIS, UH, ORGANIZATIONS TO MAKE THE CITY AS THEIR BANK.
WE NEED TO MAKE SURE THAT WE ARE, YOU KNOW, RELOOKING AT ALL THOSE IN ORDER FOR US TO, TO, UH, BE ABLE TO REDIRECT THOSE FUNDS INTO MAINTAINING AND, AND, UM, YOU KNOW, I MEAN OUR, OUR INFRASTRUCTURE, THEY'RE ONLY ASKING FOR A MILLION IN OUR GENERAL FUND PROJECTED, RIGHT? BUT THIS IS OUR RESOURCES IN ORDER FOR US TO BE ABLE TO DELIVER TO OUR PEOPLE AND WHO TAKES CARE OF IT.
[02:15:01]
PUBLIC WORKS.LAST YEAR WE SAID TWO SUPERVISORS IN COMMUNITY SERVICES, POLICE AND COMMUNITY AND, AND, UM, PUBLIC WORKS.
THOSE ARE THE THREE DEPARTMENTS THAT ARE VERY, NOT THAT, NOT THAT, UH, OTHER DEPARTMENTS ARE NOT IMPORTANT, BUT THESE ARE THE BOOTS ON THE GROUND FIRE.
THEY'RE NOT EVEN ASKING FOR, FOR A LOT THEY HAVE HERE AND THERE THAT WE CAN FIGURE OUT WHEN WE GET TO THE, TO THE ROOM.
BUT THERE ARE A LOT OF OPPORTUNITIES, JUST LIKE WHAT SCOTT SAID THAT HE HAD SAID, AND, AND THE DIRECTORS HAD SEEN THIS, AND I'M SURE THAT, UM, THEY'RE RELAYING ALL THIS INFORMATION TO OUR SCOTT, THIS, THIS PAPERWORK OR THIS, THIS NUMBERS THAT BRUCE HAD PRESENTED WITH THE HELP OF THE FINANCE DEPARTMENT, THANK YOU, UM, HAVE BEEN, HAVE BEEN, UM, WHAT, SINCE JANUARY.
THEY'VE BEEN RELOOKING AT NUMBERS.
THEY'VE BEEN GATHERING ACTUALS BECAUSE WE ASKED FOR ACTUALS BECAUSE WE CANNOT JUST GUESS WHAT'S OUR PROJECTED.
SO, UM, THERE ARE A LOT OF THINGS THAT WE STILL HAVE TO DO.
I KNOW, SCOTT, WE ONLY HAVE 45 DAYS.
WE HAVE TO DELIVER A, A, A GOOD YOU AND BUDGET, UH, THAT'S ACCEPTABLE TO THE FIVE OF US.
UM, BY, BY END OF JUNE OF THIS YEAR, SO, UM, I LOOK FORWARD TO OUR, OUR, UM, MEETING WITH THE, WITH YOU AND THE, THE FIVE OF US, UM, IN ENC CLOSED DOORS.
SO WE CAN, WE CAN REVISIT ALL THESE THINGS THAT WE NEED TO, TO, UM, TAKE CARE OF AND, AND LOOK AT THE NUMBERS.
JUST LIKE I SAID, WE HAVE TO PAY MONEY TO MAKE MONEY.
ALRIGHT, UM, COUPLE OF THINGS.
WE, UM, THERE'S A, A BALANCE BETWEEN PROVIDING SERVICES AND BEING SUSTAINABLE, IN OTHER WORDS, TO BE ABLE TO CONTINUE TO PROVIDE THOSE SERVICES.
AND THAT'S, THAT'S WHAT WE'RE GONNA BE BATTLING WITH HERE OVER THE NEXT COUPLE MONTHS.
IN FACT, THE NEXT SEVERAL YEARS IS FINDING THAT BALANCE SO THAT WE MAKE SURE THAT THE SERVICES THAT WE'RE PROVIDING NOW, ANY INCREASES IN SERVICE OR WHATEVER, THAT WE CAN STILL PROVIDE THOSE SAME SERVICES IN FOUR TO FIVE YEARS FROM NOW, AND CITIES THROUGHOUT OUR REGION ARE FIGHTING THAT BATTLE.
THIS IS NOT A, A NATIONAL CITY THING THROUGHOUT, UH, BE HONEST WITH YOU, THROUGHOUT SOUTHERN CALIFORNIA, AND I'VE TALKED TO PEOPLE IN OTHER, OTHER STATES, THE SAME THING.
THIS IS A BATTLE THAT'S GOING ON AT LOCAL GOVERNMENT LEVEL EVERYWHERE RIGHT NOW.
AND SO I LOOK AT JUST THE, UH, THOSE CALPERS, UH, UAL UH, PROJECTIONS FOR THIS YEAR.
WE, OUR, OUR NUMBER WAS $1.4 MILLION IN FOUR YEARS EACH GOING TO BE GOING UP EACH YEAR.
IN FOUR YEARS, THAT SAME NUMBER IS GONNA BE $7 MILLION.
NOW, THAT'S WITHOUT ANY INCREASE IN WAGES, RIGHT? IF WE INCREASE WAGES, WON'T THOSE NUMBERS GO UP? NOT NECESSARILY, BECAUSE THIS, THIS IS IDENTIFIED FOR THE, THE EMPLOYEES WHO'VE ALREADY RETIRED.
RIGHT NOW, THE ACTIVE EMPLOYEES, THEY PLAY WHAT'S CALLED A NORMAL COST.
AND WE'RE ACTUALLY SEEING A SLIGHT DECREASE BECAUSE OH, GOOD.
AS CLASSIC EMPLOYEES RETIRE, WE HAVE PEPPER, WHICH IS ACTUALLY A LOWER RATE, BUT THAT'S VERY MINIMAL.
BUT WHAT IS HAPPENING IS MORE AND MORE CLASSIC ARE RETIRING.
POTENTIALLY CALPERS CAN, CAN LOSE THEIR INVESTMENTS AND THAT NUMBER COULD INCREASE, UNFORTUNATELY.
BUT, SO RIGHT NOW WE'RE LOOKING AT $7 MILLION INSTEAD OF ONE POINT, ONE POINT, ALMOST ONE, ALMOST 1.4 AND A HALF.
SO THESE NUMBERS ARE GONNA BE GOING UP AS FAR AS EXPENDITURES.
AND INDEED, WE, YOU NEED TO BRING IN SOURCES OF REVENUE.
UM, THE, UH, YOU KNOW, WE, WE LOOK AT THOSE BLOCKS DOWN THERE BY, UH, UH, ON BAY MAR AWAY, UH, DOWN THERE THAT HAVE BEEN SITTING THERE VACANT AND REALIZING WE WERE READY TO PUT IN HOTELS IN THERE IN 2010 UNTIL THE GOVERNOR DID AWAY WITH REDEVELOPMENT AND DID NOT ALLOW FOR PROPERTIES THAT WERE REDEVELOPMENT PROPERTIES.
AND SO IT WAS ONLY RECENTLY THAT THEY FINALLY RELEASED THOSE SO THAT WE COULD EVEN TALK ABOUT 'EM.
WELL, THEN WE HAD TO GO TO COASTAL COMMISSION.
THAT'S TAKEN A NUMBER OF YEARS.
WE FINALLY GOT APPROVAL, AND WE'RE HOPEFUL HERE IN A VERY SHORT TIME TO PUT THOSE OUT, UH, FOR, UH, RF, QS AND RFPS SO THAT HOTELS CAN BE BUILT THERE.
AND 'CAUSE HOTELS ARE A GREAT SOURCE OF REVENUE.
AND, UH, BUT THAT'S, THAT'S TAKEN US 20 YEARS BECAUSE OF ALL THE DIFFERENT REGULATIONS THAT WE HAVE TO GO THROUGH TO GET TO, TO THOSE DEALS.
AND YET THESE, THESE PROJECTIONS ON EXPENDITURES ARE HAPPENING OVERNIGHT.
SO IT'S, ONCE AGAIN, WE, WE GOTTA REALLY DEAL WITH THAT.
BUT, UH, AND S-A-T-O-T IS GREAT BECAUSE UNLIKE
[02:20:01]
SALES TAX, WHERE YOU ONLY GET 1 CENT OUT OF THAT SALES TAX COMES THE LOCAL GOVERNMENT.AND WE ALSO HAVE A DISTRICT TAX THAT ON SOME PURCHASES WE GET AN EXTRA CENT AND THE REST OF IT ALL GOES TO COUNTY AND STATE AND EVERYBODY ELSE UNDER THE SUN IN TOT, UH, WE GET 10% OF EVERY DOLLAR THAT'S, THAT'S SPENT ON THOSE ROOMS. UM, BUT NOW HERE'S A DEAL THAT I KNOW A NUMBER OF CITIES HERE IN THE, IN THE REGION ARE LOOKING AT RIGHT NOW IS WITH TOT WE GET 10%, BUT THAT'S WHAT THE HOTEL GETS.
THE PROBLEM IS THOSE ROOMS ARE BEING RENT RENTED FOR HIGHER AMOUNTS.
'CAUSE THEY'RE GOING THROUGH EXPEDIA AND ALL THESE DIFFERENT COMPANIES.
AND THAT COMPANY GETS 20% OFF THE TOP.
WE'RE NOT GETTING THE TOT ON THAT.
SO THE, THE ROOM IS, IS ACTUALLY BEING RENTED FOR A HIGHER AMOUNT, BUT WE'RE ONLY GETTING THE REDUCED AMOUNT THAT IS FIGURED ON THE TOT.
AND THE CITIES ARE NOW COMING TOGETHER AND SAYING, WAIT A MINUTE, WE SHOULD BE GETTING TOT ON THE TOTAL AMOUNT THAT THE ROOM IS BEING RENTED UP FOR, NOT THE PART THAT THEY'RE DISCOUNTING OUT TO EXPEDIA AND THESE OTHER GROUPS.
SO THAT IS ONE OF THE THINGS THAT LOOKS LIKE IS GONNA BE A COURT BATTLE, WHICH TO TRY TO, UH, TO RECAPTURE SOME OF THAT.
SO ABOUT, THAT'D BE ABOUT A 20% INCREASE RIGHT THERE, JUST IN THE TOT ALONE.
UM, SO, YOU KNOW, THERE'S ALL THIS, BUT WE TAKE A LOOK AT, WE CAN PROVIDE SERVICES AND WE CAN TAKE THE MONEY THAT WE HAVE, BUT IF YOU TOOK A LOOK AT THE NUMBERS HERE, RIGHT NOW, WHAT WE HAVE GOING ON WITHOUT ANY, WITHOUT ANYTHING ELSE, WITHOUT NOT ADDING EXPENDITURES OR NOT ADDING REVENUES, THAT'S NOT SUSTAINABLE.
YOU KNOW, WE'D BE GOOD FOR A COUPLE OF, COUPLE OF YEARS, ABOUT THREE, MAYBE FOUR YEARS, THAT WOULD BE ABOUT IT.
AND THEN THOSE RESERVES ARE GONE AND WHICH IS THE LAST THING YOU WANT TO DO.
UM, WE DID THAT 30 YEARS AGO AND GOT IN TROUBLE.
UM, SO HOW DO, HOW DO WE DEAL WITH THAT? AND THE LAST THING YOU WANNA DO IS JUST SAY, WELL, LET'S JUST START SPENDING MORE MONEY BECAUSE SERVICES ARE GREAT.
LET'S MAKE SURE THAT, THAT WHAT WE'RE DOING IS SUSTAINABLE OVER THE LONG RUN AND NOT JUST FOR A YEAR OR TWO.
AND THEN WE GOTTA DO CUTBACKS LAST THING WE WANNA DO.
SO IT'S, IT'S, ONCE AGAIN, IT'S, IT'S A BALANCING, UH, BALANCING SITUATION.
UM, SO I AGREE IT WAS SET UP AT THE VERY BEGINNING.
THIS ISN'T NECESSARILY A, UH, UM, UH, IT WASN'T ALL POSITIVES, BUT THIS IS, WE'RE NOT ALONE IN THIS.
EVERY CITY I KNOW OF IN THE, THE BIG CITY DIRECTLY TO OUR NORTH IS IN MUCH WORSE SHAPE THAN WE ARE.
AND THEY'RE ALREADY TALKING ABOUT MAKING MAJOR CUTBACKS RIGHT NOW.
AND, UH, UH, AND EVEN THAT, THAT'S NOT GONNA HELP 'EM BALANCE THEIR BUDGET.
UM, SO WE DO HAVE THE OPPORTUNITY, UH, TO DEAL WITH THE BALANCED BUDGET, BUT IT'S WITH MAKING WISE DECISIONS AND NOT JUST, UH, YOU KNOW, THE DAYS WHEN WE COULD JUST DO ANYTHING.
WE WANT CITIES THAT THOSE THOSE DAYS ARE GONE, BUT WE CAN DO THE THINGS WE NEED TO DO AND TO MAKE SURE THAT WE PROVIDE AS MUCH SERVICE AS POSSIBLE.
AND AT THE SAME TIME, BEING ABLE TO BE CONFIDENT THAT WE CAN STILL PROVIDE THOSE SERVICES FOR FIVE, 10 YEARS FROM NOW WHEN PROBABLY NONE OF US WILL BE UP HERE ON THIS DAIS.
AND, YOU KNOW, AND THAT, THAT CAN STILL BE PROVIDED.
UM, SO INDEED THE OPPORTUNITIES FOR, UM, UH, DIFFERENT, UH, MONEY MAKERS ARE, UH, AVAILABLE.
I KNOW WE JUST FINISHED SIGNING THE AGREEMENTS, UH, FOR CARMAX.
SO THAT'S FINALLY GONNA HAPPEN AFTER ALL THESE YEARS THAT WE'VE BEEN DEALING WITH THAT, THAT SITE OVER THERE NEXT TO PLAZA BONITA.
THAT WILL HELP, THAT WILL HELP DEALING WITH SOME OF THESE INCREASES.
HOPEFULLY SOMETHING WILL COME OUT WITH THE PORT ALSO AS WE ARE DEALING WITH THE, UH, MSA AND WITH OTHER PROPOSALS WITH THEM TO GET SOME MORE MONEY COMING IN.
AND THAT WILL HELP WITH SOME OF THESE INCREASES.
BUT WE'RE GONNA BE BATTLING JUST TO KEEP UP WITH THE INCREASES, NOT NECESSARILY HAVING EXTRA MONEY, BUT JUST CATCHING UP WITH THAT, THOSE AREAS.
THAT'S THE DIFFERENCE BETWEEN INCOME AND EXPENDITURES.
THE, UH, UM, AND OF COURSE HOUSING ALWAYS COMES UP.
UH, THE REALITY IS WE, I MEAN, WE'RE THE DENSE CITY IN THE COUNTY ALREADY.
WE'RE DOING A HUGE AMOUNT, WE'RE DOING MORE THAN ANY OTHER CITY IS DOING FOR, UH, LOW INCOME AND FOR DIFFERENT HOUSING PROJECTS.
SENIOR HOUSING, WE DO MORE PERCENTAGE THAN ANY OTHER CITY IN THIS COUNTY.
UH, HOUSING DOES NOT PAY FOR ITSELF.
THE AMOUNT THAT YOU GET OFF OF, OFF OF PROPERTY TAX DOES NOT PAY FOR THE LEVEL OF SERVICES THAT THAT NEW HOUSE TAKES.
AND, AND IF IT'S LOW INCOME, SUCH AS THIS BIG BLUE BUILDING THAT'S RIGHT NEXT DOOR THAT JUST WENT IN, IT PAYS ZERO PROPERTY TAX.
BUT WE STILL PROVIDE SERVICES.
[02:25:01]
WAY OUT OF A DEFICIT BY HOUSING.IN FACT, YOU GO THE OTHER DIRECTION, IT'S GOTTA BE BY BUSINESS.
AND YET THERE'S SO MANY PEOPLE SAYING, WELL, LET'S, LET'S TAKE BUSINESS PROPERTIES AND CONVERT THEM OVER TO HOUSING.
THAT'S GONNA BE THE EXACT OPPOSITE.
SO WE NEED TO BE LOOKING AT BRINGING GOOD BUSINESSES INTO NATIONAL CITY AND BECAUSE THAT'S THE REVENUE, SO THAT WE CAN PROVIDE SERVICES TO OUR BUSINESS COMMUNITY, TO OUR VISITORS, BUT ALSO TO OUR RESIDENTS.
AND A LOT OF TIMES SOME OF THOSE, SOME OF THOSE DEALS, MUCH LIKE THE CARMAX PROJECT SUCH AS THESE, THESE HOTELS THAT TAKES YEARS, SOMETIMES DECADES TO MAKE IT HAPPEN.
SO IT'S NOT JUST A GET TO WORK TYPE OF THING ON LET'S DO IT AND IT'S GONNA HAPPEN RIGHT NOW, BUT IT'S TAKING THE WORK TO MAKE ALL THESE THINGS HAPPEN.
AND WE'VE GOT, WE HAVE THE TWO HOTELS THAT HAVE NOW BEEN APPROVED OVER ON, UH, BAY MARINA WAY, UH, THOSE TWO SITES BY THE COASTAL COMMISSION.
AND WE'RE GOING BEFORE THE COASTAL COMMISSION WITH THE PORT NOW FOR MORE HOTELS DOWN BY THE, UH, BY THE MARINA.
AND WE'LL SEE HOW THAT BATTLE IS.
AND UH, COASTAL COMMISSION IS NOT, NOT AN EASY ONE, BUT AS I SAY, BUT ONCE AGAIN, THAT'S TAKEN YEARS ALSO.
UH, SO THESE THINGS ARE ALL HAPPENING AND, BUT IT, ONCE AGAIN, LET'S TAKE A LOOK AT THE NUMBERS AND MAKE SURE THAT WE'RE SPOT SPENDING THE MONEY WISELY SO THAT INDEED WE HAVE THE SUSTAINABILITY.
AND SO ONCE AGAIN, IT'S A BALANCING ACT, MR. MAYOR.
SO YOU'RE TALKING ABOUT, YOU KNOW, I MEAN RESERVE BALANCE OF, YOU KNOW, BEING CONSERVATIVE AND ALL THAT, AND I UNDERSTAND, BUT LOOKING AT THE RESERVE BALANCES OF JUNE 30, 20, 24, YOU KNOW, I MEAN, WE HAVE RESERVE FOR, FOR THOSE FUNDS, UH, PENSION TRUST, OPE, TRUST, FACILITY MAINTENANCE, ECONOMIC CONTINGENCY.
AND SO OF COURSE WE ARE GONNA BE PRUDENT IN TOUCHING THOSE RESERVES.
BUT IF THERE IS A WAY, BECAUSE RE REALLY RIGHT NOW, WE STILL HAVE TO TAKE CARE OF OUR WORKING, WORKING STAFF.
YOU MEAN OUR WORKING FOR OUR WORKFORCE.
AND SO THERE'S, THAT'S WHERE WE HAVE TO BE CREATIVE IN MAKING SURE THAT WE PROVIDE THEM WITH, WITH AN ACCEPTABLE CONTRACT.
AND THIS IS OUR WORKFORCE, MR. MAYOR.
SO, UM, I, I WOULD LIKE TO, UM, SUPPORT THE, UH, THE DIRECTION OF OUR CITY MANAGER TOWARDS, UM, YOU KNOW, I MEAN THE, HIS APPROVAL OR HIS DIRECTION TO APPROVE ANY, UH, POSITION THAT WILL BE, UM, THAT WILL BE FILLED, UM, BEFORE, BEFORE IT GETS FILLED.
BECAUSE, UM, I WANTED TO SEE THAT DIRECTION FROM, FROM HIM.
AND I WILL, I WOULD LIKE TO SUPPORT THAT MR. CITY MANAGER.
I THINK WE'RE ALL THERE ON THAT.
WE'VE BEEN TELLING THAT SINCE, UH, OCTOBER OF LAST YEAR.
UM, AND THEN I WOULD ALSO LIKE TO, UM, YOU KNOW, I MEAN GET, UH, YOU KNOW, I MEAN GET A REPORT ON WHAT HAPPENED WITH OUR, UM, COUNCIL MEMBER MOLINA, REMEMBER WE ARE, WE ARE, UM, WE ARE A SUBCOMMITTEE FOR THE, UM, PROPERTIES ON THE, THE SIX PARCEL LOTS FOR THAT HOTEL.
I DON'T KNOW WHAT'S HAPPENING THERE RIGHT NOW.
SO, UM, I THINK WE JUST, THE WHERE WE WE'RE WAITING ON THE TAXING AGENCIES, AREN'T WE, DIDN'T WE APPROVE MOVING FORWARD WITH THE RFP PROCESS? AS SOON AS WE GET THE INFORMATION FROM THE TAX AGENCIES, THAT'S THE INFORMATION THAT WE NEEDED, IS IF THAT TAXING, UM, YOU NOMENT AGENCIES, UH, HAVE, UM, WE, WE NEED THAT REPORT FROM OUR CONSULTANTS, UM, MR. CITY MANAGER PLEASE.
AND THEN, UM, THE, UM, THE CONTRACTS ON THOSE FRANCHISE FEES, I WOULD LIKE FOR YOU TO REVISIT THAT VERY, VERY FAST, UM, AS SOON AS POSSIBLE.
AND, UM, AS WELL AS, UM, MAYBE WE WOULD, WE WOULD LIKE ALSO TO LISTEN TO, UM, AN UPDATE ON THE MSA WITH THE PORT WHERE THAT, WHERE ARE WE WITH THAT ONE? UM, AS WELL AS, UM, YOU KNOW, I MEAN THE, THE, THE TOT UM, CONTRACTS WITH THE 12 HOTELS THAT WE HAVE, UM, I WOULD LIKE TO SEE THOSE AS WELL AND SEE, UH, WHAT KIND OF OPPORTUNITIES WE CAN, UM, WE CAN, YOU KNOW, GATHER FROM THOSE.
UM, THOSE ARE THE IMMEDIATE, YOU KNOW, MEAN THINGS THAT I WOULD LIKE TO SEE.
MR. MAYOR, I KNOW THAT WE HAVE, WE ARE RUNNING OUT OF TIME, BUT IF WE CAN PINPOINT THIS, UM, AS SOON AS WE CAN, THEN THAT PROJECTED WILL, UH, WILL BE ADJUSTED.
UH, JUST A FINAL COMMENT, UH, ON THAT REVENUE SLIDE.
REVENUE OPPORTUNITIES THAT WE ARE EXPLORING, UM, THE VERY FIRST ONE THAT WAS PUT ON THERE, I WAS VERY HAPPY TO SEE VACANT PROPERTY TAX.
UM, THIS IS SOMETHING THAT I HAD MENTIONED, UM, SOMETIME AGO AND, AND IT, IT IS SURPRISING TO ME THAT IT ISN'T
[02:30:01]
SOMETHING THAT WE ALREADY HAVE CURRENTLY BECAUSE THAT IF WE'RE TALKING ABOUT REINVESTING INTO OUR COMMUNITY, I THINK THAT IS CERTAINLY ONE, UM, THAT IS, UH, YOU KNOW, FEASIBLE OR, OR, YOU KNOW, ATTAINABLE.BECAUSE IF THERE ARE VACANT PROPERTIES AND THERE ARE PROPERTY OWNERS THAT ARE, YOU JUST, YOU KNOW, HAPPY TO LEAVE THAT SPOT THE WAY IT HAS BEEN FOR 20 PLUS YEARS AND, AND WITH ABSOLUTELY NO INCENTIVE TO DO ANYTHING ABOUT IT, THAT IS A COMPLETE LACK OF INVESTMENT IN OUR COMMUNITY.
SO, UH, HAVING AN INCENTIVE FOR PROPERTY OWNERS TO DO SOMETHING, TO MOVE TO, TO GIVE OTHERS AN OPPORTUNITY TO DEVELOP THAT.
I THINK A VACANT OPPORTUNITY TAX IS, UM, EXACTLY THE RIGHT, UH, ONE OF THE TOOLS THAT CAN BE PUT IN PLACE MM-HMM
TO ENERGIZE OUR COMMUNITY INTO, YOU KNOW, FOR, FOR THOSE AREAS THAT, AND WE ALL, WE, WE DRIVE BY AREAS WE CAN ALL EASILY, UH, CALL OUT, YOU KNOW, AREAS THAT WE HAVE SEEN THROUGHOUT THE YEARS THAT REMAIN VACANT AND, UM, STALE.
SO, UH, I AM A HUGE PROPONENT OF THAT, UH, VACANT PROPERTY TAX AS WELL AS EMPTY STOREFRONTS, UH, ON HIGHLAND.
AGAIN, I CAN PINPOINT TO, TO IMMEDIATELY COME TO MIND THAT CONTINUE TO STAY.
UM, YOU KNOW, THERE ARE STOREFRONTS, THEY, THEY ARE JUST UNIN INVESTS.
I, I MEAN, I DON'T KNOW THE, THE, THE, I DON'T KNOW THE SITUATION FOR WHY IT IS HAPPENING, BUT IF WE HAVE CREATIVE WAYS TO, UH, INCENTIVIZE THOSE PROPERTY OWNERS TO GET ENERGIZED AND GET THOSE STOREFRONTS OPENED AND MOVING AND GENERATING REVENUE AND SALES TAX, UM, THERE'S GOTTA BE WAYS FOR US TO, UH, AGAIN, INVEST IN OUR COMMUNITIES.
AS MANY OF MY COLLEAGUES HAVE SAID, UM, BY HAVING THE PROPERTY OWNERS DO THAT, INVESTING RIGHT, LET'S BE CREATIVE IN THOSE WAYS.
THERE IS A LOT OF OPPORTUNITY IN OUR CITY.
UM, AND AGAIN, WITH THE LIMITED RESOURCES THAT WE AS A CITY HAVE, WE HAVE TO BE VERY CREATIVE ABOUT, UM, INCENTIVIZING PROPERTY OWNERS TO DO THEIR PART AND DO RIGHT BY OUR CITY, BY NATIONAL CITY.
I REMEMBER COUNCIL MEMBER MOLINA, UM, YOU KNOW, I MEAN EXPRESSING THAT, UM, PRIOR TO, AND IN FACT I EVEN POINTED AT 16 AND NASHVILLE CITY BOULEVARD CORNER, HOW COME IT'S STILL VACANT FOREVER AND EVER.
UM, SO YEAH, THERE ARE, UH, THERE ARE CREATIVE WAYS AND UM, AS WELL AS, UM, YOU KNOW, OF COURSE WE'RE NOT GONNA, WE'RE NOT GONNA STAY, YOU KNOW, I MEAN LAX ON, ON GOING, GOING FORWARD AND, UH, SUBMITTING GRANTS OR SEEKING GRANTS FROM, UH, EVERYWHERE, UH, WHERE THERE ARE AVAILABLE.
UM, WE ALSO HAVE TO MAKE SURE THAT WE ARE ACTIVE IN, UH, SEEKING THOSE.
UM, IT'S HIT AND MISS, BUT IF WE'RE NOT AT THE TABLE, WE'RE ON THE MENU.
AND, AND I THINK THAT, UM, AND I THINK THE ILLUSTRATION YOU, YOU MENTIONED ABOUT 16TH AND, AND HIGHLAND OR 16TH AND NASHVILLE CITY BOULEVARD I THINK IS A GREAT ONE.
THAT WAS ONE WHERE WE BENT OVER BACKWARDS FOR A DEVELOPER.
THEY TORE DOWN, UH, THE EXISTING BUSINESSES THAT WERE THERE AND THEY WERE IN SUCH A RUSH AND THEY MADE OUR, WE, WE HAD OUR STAFF JUMP THROUGH HOOPS TO TRY TO GET THEIR DEVELOPMENT READY AND PUT IN A PARKING DISTRICT FOR 'EM AND EVERYTHING ELSE.
AND NOW IT IS SET THERE ALL THIS TIME AND THEY DON'T RETURN OUR CALLS.
UM, SO, UH, THAT MIGHT BE SOMETHING WE MIGHT LOOK INSTEAD OF AS A TAX, BUT LOOKING IN UNDER OUR FEE STRUCTURE BECAUSE ANY OF THOSE THINGS THAT'S DOWN AS A TAX.
YOU HAVE TO GET, YOU HAVE TO GET VOTER APPROVAL.
AND SO, BUT THERE MIGHT BE A CHANCE OF USING MORE OF A FEE STRUCTURE, UH, FOR, UH, FOR VACANT LOTS.
WE'RE GONNA BE CREATING MR. MAYOR AND THE DIRECTORS ARE LISTENING.
OKAY, MR. MAYOR, DO WE HAVE A LAST THOUGHTS HERE? DO WE HAVE ADDITIONAL SCHEDULED, UM, BUDGET HEARINGS? OH, YEAH.
WE DON'T HAVE 'EM SCHEDULED YET, BUT, OKAY.
SO THAT'S ONE OF THE THINGS THAT WE WANTED TO TALK ABOUT TONIGHT, UM, IS HOW DO YOUR, HOW DOES YOUR SCHEDULE LOOK? WE HAVE OUR NORMAL COUNCIL MEETING SCHEDULED MM-HMM
BUT, UM, I THINK TO, UM, IT, IT'D GOOD FOR US TO SEPARATE FROM THE CLOSED SESSION.
IT'D BE GOOD FOR US TO HAVE A, AT LEAST TWO WEEKS, UH, BECAUSE WE'RE TRYING TO PUT TOGETHER THE BINDER AND MM-HMM
YOU KNOW, AND YOU KNOW, YOUR FEEDBACK.
AND THEN HOW DO WE FRAME SOME OF THESE THINGS, PUT MORE MEAT ON THE BONE, SO TO SPEAK, SO YOU CAN START, UH, THINKING ABOUT IT.
UM, AND, UH, SO LOOKING OUT TWO WEEKS, WE HAVE OUR NEXT COUNCIL MEETING,
[02:35:01]
UM, AND I DON'T KNOW IF THERE'S AN APPETITE TO TRY TO DO IT ON THAT SAME WEEK.UH, WE CAN LOOK AT THURSDAY IF, IF THAT WORKS THE 22ND.
IF WE, IF, IF THIS WORKS, UH, FOR EVERYBODY, UH, WE CAN WORK, UM, TRY TO SEE WITH YOUR SCHEDULE AND, AND KEEP IT ON TWO WEEKS FROM, UH, THIS THURSDAY.
DOES ANYONE LOOK AT THEIR CALENDAR? SEE HOW 22ND WORKS? THAT'S A THURSDAY.
THAT'S, THAT'D BE, WE HAVE A, WE HAVE A COUNCIL MEETING ON THE 20TH, AND SO IF WE WAS TO HAVE A SPECIAL MEETING JUST TO DEAL WITH THE BUDGET ON THE 22ND.
I, I DON'T WANT TO TIE IT IN WITH THE COUNCIL MEETING.
I, I WAS GONNA SAY THE SAME THING, MR. MAYOR.
I THINK IT'S IMPORTANT TO HAVE THIS KIND OF ON ITS OWN MM-HMM
UM, THE FIELD IS VERY DIFFERENT, WHICH IS GOOD.
I MEAN, WE'RE JUST TALKING NUMBERS AND WE'RE DISCUSSING, YOU KNOW, PETITIONER REVENUE OPTIONS AND I, I THINK IT'S BETTER TO KEEP IT SEPARATE.
I THINK FOR MAYOR, SORRY, SORRY, SAM, GO AHEAD.
UM, I WOULD LIKE TO EXPAND ON SOME OF THESE IDEAS.
UM, YOU KNOW, THE BUDGET, I, YOU KNOW, WE, WE CAN WHIP THROUGH THE BUDGET.
IT'S REALLY, I THINK WHERE WE'RE AT NOW IS WHEN YOU GET THE BIGGER BUDGET DOCUMENT, YOU'RE GONNA HAVE A LOT OF BACKGROUND MM-HMM
AND, YOU KNOW, YOU WANT TO DO YOUR DIVE ON THAT, AND THAT'S GONNA BE NOT, IT DOESN'T HAVE TO BE FULLY ACCOMPLISHED AT THE NEXT MEETING.
UM, BUT, UH, THERE'S A NUMBER OF THESE THINGS THAT WE REALLY WANT TO FRAME BETTER.
AND, UH, AND ALSO WE HEARD YOUR INPUT SO, YOU KNOW, WE CAN REVISIT A NUMBER OF ITEMS AND, UM, AND LET'S SPEND TIME TALKING ON THAT.
I, I, I'M NOT TRYING TO BE DISMISSIVE TO THE BUDGET PROCESS BECAUSE IT'S GOING, I I DON'T, I'M NOT REALLY WORRIED THAT WE'RE GONNA MEET OUR TIMEFRAME.
UM, I THINK THAT YOU UNDERSTAND THE SITUATION, WE HAVE TO JUST MAKE SOME DECISIONS.
THE TIMEFRAME'S NOT GONNA HELP THAT, IN MY OPINION.
UM, A LITTLE BIT MORE FACTS WILL HELP THAT AND FRAMING IT.
UM, BUT IT'S THESE OTHER THINGS THAT, YOU KNOW, THE CLOCK'S TICKING, SOME OF 'EM ARE GOING RIGHT NOW.
UM, YOU KNOW, WE, WE WANT TO, UH, WE WANNA WORK ON THINGS TOO SIMULTANEOUSLY.
I THINK THAT'S ONE OF THE ISSUES.
UM, AND, AND IT'S NOT AN ISSUE FOR MY COWORKERS.
IT'S AN ISSUE OF HOW WE SEQUENCE THINGS AND UM, AND HOW WE PULL RESOURCES TOGETHER.
AND REALLY THE, UM, THE LOTS THAT WE'RE TALKING ABOUT DOWN ON, UM, BAY, BAY MARINA, UM, WE STILL NEED TO DO ZONING AND WE NEED TO DO ZONING IN THE WHOLE AREA.
THERE'S, THERE'S A NUMBER OF THINGS THAT WE ARE TRYING TO LINE UP AND DO SIMULTANEOUSLY TO DEALING WITH THE, UM, THE TAXING AGENCIES.
UM, WE NEED TO TALK ABOUT AND GET AN AGREEMENT ON WHAT OUR STRATEGY IS ON THAT PROPERTY.
UM, WE'VE TALKED ABOUT WHAT WE WANT ON THE PROPERTY, BUT WE NEED TO TALK ABOUT, AGAIN, WITH THE IDEA OF A, YOU KNOW, DEVELOPER, HOW, HOW WE'RE GONNA APPROACH IT.
UM, AND THOSE, WE NEED TO HAVE SOME TIME IN CLOSE SESSION.
'CAUSE THOSE ARE ALL PROPERTY ISSUES.
UM, AND NOW'S THE TIME TO FRAME THAT STUFF UP BECAUSE, YOU KNOW, WE'RE GETTING THOSE QUESTIONS, UH, ADDED.
SO MR. MAYOR, I'M NOT AVAILABLE ON THE 22ND.
I ADJOURN AT 7:00 PM FOR ONE OF THE AGENCIES.
CAN WE MAYBE TRY TO WORK A CALENDAR AT A YEAH.
KIND OF OFFLINE? IS THAT YEAH, WE CAN DO THAT.
MARCUS IS INCLUDED ON THE CONVERSATION OR SAY, OR POSSIBLY EVEN IF YOU SAID YOU HAVE LIKE A SEVEN O'CLOCK MEETING, WE SEE IF EVERYONE WOULD BE AVAILABLE LIKE HERE, LIKE FOR A FOUR O'CLOCK OR SOMETHING LIKE THAT, OR A THREE O'CLOCK, SOMETHING LIKE THAT LINE.
HUH? I KNOW THAT'S A LITTLE HARD FOR ME.
I WOULD PREFER IF WE COULD MEET 5:00 PM ON, OKAY, MR. MAYOR, THAT THURSDAY I START AT NINE AND, AND AT SEVEN.
SO, UM, YEAH, BUT, BUT UM, THAT 12 IS ALREADY A GO RIGHT? CITY MANAGER? THERE IS, THERE WAS A, UH, MONDAY.
MONDAY, THAT'S SPECIAL MEETING.
OKAY, WELL, WE'LL, WE'LL SURVEY EVERYONE AND SEE WHAT WE CAN COME UP WITH, UH, FOR A DATE AND, UH, UH, WITH ENOUGH, ENOUGH AHEAD TIME SO THAT, YOU KNOW, EVERYONE WILL KNOW ABOUT IT AND EVERYTHING.
AND, AND WE CAN GET THE WORD OUT ON THAT ONE THEN.
WE MAY EXPAND THAT AT, UH, CLOSED SESSION AGENDA, UHHUH.
'CAUSE WE CAN TALK ABOUT SOME OF THE PROPERTY THINGS.
I JUST NEED TO MAKE SURE WE'RE DOING THE NOTICE PROPERLY AND ALL THAT.
THAT'S AND ACCOMPLISH SOME THINGS ALL TIME.
YEAH, SOME TIME WE'VE DONE THIS WEEK.
UH, WITH THAT, UNLESS WE HAVE ANYTHING ELSE, UH, WE WILL ADJOURN THE WORKSHOP.