[00:00:01]
>> THANK YOU. I'M CALLING THIS MEETING TO ORDER.
[1) CALL TO ORDER]
MADAM CLERK, WOULD YOU CALL THE ROLL?>> COUNCIL MEMBER GARCIA IS ABSENT.
IF YOU ARE ABLE, PLEASE STAND FOR A FLAG SALUTE, AND REMAIN STANDING FOR A MOMENT OF SILENCE.
YOU MAY BE SEATED. [NOISE] NEW BUSINESS,
[4a. The Preliminary Proposed Annual Operating General Funds and Special Revenue Funds Budget and Preliminary Capital Improvement Project for the Fiscal Year of 2022-2023 (Perez-Hernandez)]
THE PRELIMINARY PROPOSED ANNUAL OPERATING GENERAL FUNDS AND SPECIAL REVENUE FUNDS BUDGET IN PRELIMINARY CAPITAL IMPROVEMENT PROJECTS FOR THE FISCAL YEAR OF 2022/2023.>> I HAVE A QUICK INTRODUCTORY COMMENT, IF THAT'S OKAY, MAYOR.
>> HONORABLE MAYOR AND MEMBERS OF THE COUNCIL, TONIGHT WE WILL BE REVIEWING BOTH THE OPERATING GENERAL FUND BUDGET AND START OF THE CIP REVIEW.
THIS DRAFT IS DRIVEN BY COMMUNITY AND COUNCIL PRIORITIES AND ALSO SPECIFICALLY FROM THE PRIORITIES THAT WERE DEVELOPED IN OUR APRIL WORKSHOP.
THE PROPOSED OPERATING BUDGET IS BALANCED ACTUALLY WITH A SMALL SURPLUS AND AT THE SAME TIME, ACHIEVES THE CONTINUED DELIVERY OF VITAL SERVICES WHILE ADJUSTING TO INCREASING OPERATING COSTS.
IT RETIRES A DECADES-OLD PUBLIC SAFETY PENSION LIABILITY THAT'S BEEN ON THE CITY'S BOOKS FOR DECADES, BACKFILLS A NUMBER OF FROZEN POSITIONS THAT WERE LEFT VACANT DURING THE INITIAL COVID-19 RESPONSE, AND IT INCLUDES THE ADDITION AND RECLASSIFICATION OF STAFF POSITIONS AND RECOGNITION OF WORKLOAD CHANGES OVER THE LAST COUPLE OF YEARS.
THE CAPITAL IMPROVEMENT PROGRAM IS VERY AGGRESSIVE.
YOU WILL SEE OVER 70 ITEMS ON THE CAPITAL IMPROVEMENT PROGRAM.
THESE ARE PREVIOUSLY IDENTIFIED OR ONGOING PROJECTS AS WELL AS NEW PROJECTS.
THEY WILL NOT ALL BE COMPLETED DURING THIS UPCOMING FISCAL YEAR AND SOME OF THEM AREN'T EVEN SCHEDULED TO START DURING THE '22/'23 YEAR.
NONETHELESS, WE'VE TAKEN TO THE PRACTICE OF INCLUDING ANYTHING THAT'S ON OUR RADAR ON THAT CAPITAL IMPROVEMENT PLAN AND ONE OF THE MAJOR ASKS OF THE COUNCIL OVER THE NEXT FEW DAYS IS TO HELP STAFF PRIORITIZE WHICH ONES SHOULD BE AT THE TOP OF THAT LIST AND FOR OTHER REASONS THAT WE'LL DISCUSS WHY WE KEEP THAT MANY PROJECTS ON THE LIST.
THE RESULTS OF THAT IS A SLIGHT USE OF RESERVES IF WE WERE GOING TO COMPLETE THAT ENTIRE LIST DURING THIS FISCAL YEAR.
YOU'LL SEE APPARENTLY CONFLICTING NUMBERS, YOU'LL SEE A DEFICIT ON THE CAPITAL IMPROVEMENT LIST, BUT WITH THE FULL KNOWLEDGE THAT WE'LL NEVER GET THERE DURING THIS COMING YEAR.
MR. PEREZ HERNANDEZ WILL ALSO PRESENT A COLLECTION OF PROPOSED STRATEGIES AND POLICY CONCEPTS THAT WE'LL EXPLORE MORE THOROUGHLY AFTER BUDGET ADOPTION THAT WILL HELP US REACH SOME OF OUR PRIMARY GOALS.
THE CENTRAL OF THAT IS THE PUBLIC SAFETY, HOW WE'RE GOING TO RESPOND TO PUBLIC SAFETY NEEDS HERE IN THE CITY.
ONE FURTHER COMMENT IS THAT AS WE SEE, WE'RE MISSING COUNCIL MEMBER GARCIA TONIGHT.
HE WILL BE WATCHING THE PROCEEDINGS HERE VIA THE LIVE STREAM AND SO WE WANT TO BE AS CLEAR AS POSSIBLE ABOUT WHICH SLIDE WE'RE DISCUSSING WHEN THERE'S A DISCUSSION.
ISRAEL WILL ALSO ANNOUNCE THE SLIDE WE'RE WORKING ON.
THAT WAY, WHEN HE REVIEWS THE LIVE STREAM, HE CAN BE UP TO SPEED AS MUCH AS POSSIBLE.
WE'VE ASKED HIM TO COLLECT HIS QUESTIONS AND COMMENTS AS HE VIEWS IT AND THOSE CAN BE PRESENTED AT TOMORROW'S MEETING. DOES THAT ALL MAKES SENSE?
>> YEAH, IT ALL MAKES SENSE. THANK YOU, MR. HURLBERT.
>> I DO WANT TO TAKE A MOMENT TO ASK THAT I BE GIVEN A HARD COPY, I DON'T KNOW IF ANYBODY WANTS IT, OF THESE ITEMS. I PRINTED SOME OF THEM AT MY HOME, BUT I'D LIKE TO HAVE A HARD COPY BECAUSE IT MAKES IT EASIER FOR ME TO MAKE ANNOUNCEMENTS.
[00:05:05]
>> YOU SHOULD ALL HAVE A COPY OF THE SLIDES.
>> YES. NOT RIGHT NOW, BUT TOMORROW'S MEETING.
>> DO YOU WANT A HARD COPY OR YOU WANT IT IN THE SHARE FILE?
>> IT'S IN THE SHARE FILE ALREADY, BUT THERE'S SO MUCH INFORMATION I WANT TO HAVE IT PRINTED.
>> CAN YOU CLOSE THE POWERPOINT? IT'S OPENING [INAUDIBLE]
>> IF ANYBODY ELSE WANTS A HARD COPY, PLEASE ASK FOR IT AT THIS TIME.
>> [BACKGROUND] I KNOW IT'S IN THE SHARE FILE, BUT I CAN'T EVEN GET INTO THE SHARE FILE.
>> IT'S A LOT OF INFORMATION, A LOT OF PAGES.
I PRINTED SOME OF IT, BUT IT'S NOT ALL OF IT.
>> [INAUDIBLE] [LAUGHTER] TAKE IT AWAY.
>> I WISH I CAN DO THE STAR WARS THEME SONG, BUT NOT QUITE THERE YET.
>> YOU HAVE THE FLOOR, MR. PEREZ HERNANDEZ.
>> HONORABLE MAYOR, MEMBERS OF THE CITY COUNCIL, STAFF, AND ATTENDEES, I WANT TO THANK YOU GUYS FOR THIS EVENING AS IT'S BEEN A COLLABORATIVE [NOISE] EFFORT FOR ALL OF US TO PUT THIS BUDGET TOGETHER.
WITHOUT FURTHER ADO, I CAN KEEP TALKING, BUT I THINK WE WANT TO GO THROUGH THE SLIDES BECAUSE THERE'S A LOT OF INFORMATION TO COVER.
[NOISE] THE TECHNOLOGY IS TOO ADVANCED.
THERE YOU GO. AWESOME. AS THE CITY MANAGER MENTIONED, WE ARE GOING TO BE BREAKING UP THE BUDGET INTO THE GENERAL FUND.
THEN THAT GENERAL FUND IS GOING TO BE BROKEN DOWN INTO SMALLER SLICES; WHICH IS SUPPORT SERVICES LIKE CITY COUNCIL, CITY MANAGER, CITY CLERK THAT THEY PROVIDED A SUPPORT SERVICE TO THE ENTERPRISE FUNDS.
THAT'S GOING TO HAPPEN TONIGHT.
THEN WE'RE ALSO GOING TO SHIFT OVER TO THE SPECIAL REVENUE FUNDS.
SPECIAL REVENUE, THESE ARE FUNDS THAT ARE THERE FOR A SPECIFIC PURPOSE.
THEY'RE NOT FOR GENERAL PURPOSE.
THEY NEED TO BE SPECIFIC IN NATURE AND THAT'S JUST THE STATE REQUIREMENTS.
THEN TOMORROW, ON JUNE 21ST, WE WILL HAVE A FOLLOW-UP FOR COUNCIL AND MAYOR, THEIR FOLLOW-UP QUESTIONS FROM TONIGHT'S FIRST BUDGET WORKSHOP CIRCLE BACK AND WE RESPOND TO THOSE QUESTIONS.
THEN ON THE 22ND, WE WILL FOCUS ON THE ENTERPRISE FUNDS AND THAT'LL MEAN OUR WASTEWATER, OUR WATER, OUR SANITATION, OUR CNG, AND OUR PUBLIC TRANSIT.
ON THE 27TH, CONTINUE TO REVIEW AND POSSIBLE ADOPTION BY THE CITY COUNCIL.
ON APRIL 2ND, THERE WAS A WORKSHOP FOR STRATEGIC PLANNING AND STAFF DEPARTMENTS PRESENTED STRENGTHS, WEAKNESSES, AND CHALLENGES AHEAD OF US.
OUT OF THOSE CONVERSATIONS CAME ABOUT SIX DIFFERENT BUCKETS AND GOALS THAT WERE THE PRIMARY PILLARS THAT WERE THE DRIVING FORCE FOR THE BUDGET FOR THE CIP, AS THE CITY MANAGER MENTIONED, PUBLIC SAFETY AND PAYING DOWN THAT UNFUNDED LIABILITY.
I WOULD LIKE TO JUST QUICKLY HIGHLIGHT THEM.
ENHANCING FINANCIAL STABILITY AND SUSTAINABILITY, ENHANCING AND MODERNIZING FACILITIES, IMPROVING AND MAINTAINING CITY INFRASTRUCTURE, IMPLEMENTING STRATEGIC ECONOMIC DEVELOPMENT, ENHANCING EMPLOYEE DEVELOPMENT AND RETENTION, AND LASTLY, DEFINE AND PRIORITIZE COMMUNITY BUILDING INITIATIVES.
AS WE KNOW, DURING THE LAST BUDGET CYCLE, THERE WAS SOME UNCERTAINTIES BECAUSE THERE WASN'T CLEAR GUIDANCE IN TERMS OF THE PANDEMIC AND HOW IT WAS GOING TO BE AFFECTING
[00:10:01]
THE OVERALL POPULATION EVEN THOUGH THERE WAS ALREADY SOME FORM OF A VACCINE.THERE WAS BOOSTER SHOTS, BUT YET THERE WAS STILL AN IMPACT IN OUR GENERAL FUND REVENUES AND SOME OF OUR RESIDENTS BEING IMPACTED BY THE ABILITY TO PAY FOR A SERVICE PROVIDER FOR UTILITIES, WATER, SEWER, AND TRASH.
AS WE CAN SEE HERE, THE CASES ARE FAR BELOW.
IF YOU LOOK AT THE LEFT-HAND CHART, WE CAN SEE THAT WE HAVE NOT REACHED THE LEVELS WE WERE AT LAST YEAR, AND COMPARE IT TO THE RIGHT-HAND SIDE, WE'RE ALMOST AT ZERO.
CASES PER 100,000 COMPARED TO THE RIGHT-HAND SIDE, WHICH IS MORTALITY RATES.
HOW DOES THAT TRANSLATE TO OUR BUDGET THAT WE'RE SLOWLY TRANSITIONING AWAY FROM THE STATE? BEING MORE RELAXED.
NOW THERE'S NO MORE RESTRICTIONS FOR BUSINESSES.
ALSO, EVEN THOUGH THERE'S A HIGH INFLATION, WE HAVE TO ALSO MAY KNOW WE ALSO HAVE STRONG MARKET REMAINING STRONG IN THE HOUSING SECTOR AND THERE IS A HIGH DEMAND.
WE WILL SEE THAT IN THE FOLLOWING SLIDE BECAUSE AS WE CAN SEE, THERE'S ABOUT 500 JOBS CREATED IN APRIL.
THEN HERE COMES MAY, AND THERE WAS AN ADDITIONAL 390 JOBS THAT WERE CREATED.
THERE ARE 17 MONTHS STRAIGHT THAT THE MARKET HAS SHOWN A GROWTH IN JOBS.
IT DOESN'T MEAN DISPLAY AS IT SHOWS HERE ON THE GRAPH.
FROM 2019 WHEN THE PANDEMIC STARTED, WE CAN SEE THAT ALL THE DIFFERENT ECONOMIC SECTORS ARE LISTED IN A DIFFERENT LINE.
BUT THE MAIN FOCUS IS THE DARK BLACK LINE AND THAT IS THE AVERAGE AND IS HOURLY EMPLOYEES.
HOW DOES THIS TRANSLATE? IT MEANS THAT FROM 2019-2022, HOURLY EMPLOYEES HAVE MORE INCOME IN THEIR POCKETS.
NOW, JUST BECAUSE THEY HAVE MORE INCOME IN THE POCKETS DOES NOT MEAN THAT THERE'S THE SUPPLY.
YOU MIGHT HAVE THE MONEY, BUT THERE IS NOT THAT SUPPLY TO BE ABLE TO PURCHASE THOSE GOODS.
A LOT HAS TO DO WITH FEDERAL GOVERNMENT RESTRICTIONS.
WE'LL COVER THOSE IN A SUBSEQUENT SLIDE.THERE WAS A REPORT THAT THE UCLA ANDERSON FORECAST, AND THEIR FORECAST IS ANTICIPATING SOME FORM OF A RECESSION MIDDLE OF 2023.
THAT ANALYSIS AND FORECAST IS VERY DETAILED.
AS SUCH, TRANSLATED THAT INTO THE BUDGET, HOW WE CAN NAVIGATE THE NEXT 12 MONTHS.
JUST BECAUSE RE-SEEING SPIKES IN THE ECONOMY, NOT MEAN THAT WE CAN START SPENDING RECKLESSLY BECAUSE THE RECESSION IS TO WASCO.
WE CAN SEE A MAJOR IMPACT IN OUR REVENUES.
DO WE WANT TO SCALE UP REALLY FAST AND THEN SCALE BACK? OR DO WE WANT TO BE STRATEGIC AS TO HOW WE INVEST OUR MONEY? HOW DO WE ENHANCE OUR FACILITIES, OUR DEVELOPMENT OF OUR STAFF, AND RETENTION? LIKE IT WAS MENTIONED ON THE SIX PILLARS DURING THIS STRATEGIC WORKSHOP.
WE ARE CURRENTLY VERY SMALL LITTLE NUMBERS.
NUMBER 9, WE'RE ON SLIDE NUMBER.
WE STARTED THE FISCAL YEAR, WHAT THEY BALANCED BUDGET. WHAT THAT MEANT? [NOISE] THE REVENUES THAT WE WERE ANTICIPATING COMING IN AND THE EXPENSES THAT WE WERE PROJECTING TO SPEND DURING THE CURRENT FISCAL YEAR THAT WE'RE IN RIGHT NOW, ARE BALANCED.
THE MONEY COMING IN IS THE SAME AMOUNT OF MONEY THAT IS GOING OUT TO PAY FOR SERVICES.
WE'RE NOT DIPPING INTO OUR SAVINGS ACCOUNT AND HERE, JUST TO MAINTAIN THE SAME LEVEL OF SERVICE FOR A RESONANCE.
THIS IS OUR SECOND YEAR THAT WE SUBMITTED OUR AUDIT ON TIME, WHICH IS A BENCHMARK BY THE GFOA THAT WE NEED TO HAVE AN AUDIT WITHIN THE FIRST SIX MONTHS.
IT'S QUITE A CHALLENGE BECAUSE THAT IN ITSELF, IT'S A DAUNTING TASK TO GET ALL THESE RESOURCES TO SUBMIT IT WITHIN SIX MONTHS BECAUSE WE'RE THE COUNCIL.
[00:15:04]
FOR STAKEHOLDERS, THAT IS VALUABLE INFORMATION.ANYTHING AFTER SIX MONTHS IS NOT REALLY VALUABLE AS TO HOW WE'RE GOING TO MAKE DECISIONS WHEN MIDYEAR BUDGET REVIEW COMES AROUND.
WE GOT NO GENERAL DEBT OBLIGATIONS.
WHAT THAT MEANS IS WE DIDN'T GO OUT TO THE MARKET AND HOLD BONDS OR ANY TYPE OF LENDING.
DURING THE MIDYEAR BUDGET, WE DISCUSSED THAT WHEN YOU DIVIDE UNASSIGNED FUND BALANCE DIVIDED BY CURRENT OPERATING COSTS, OUR TARGET THAT THE COUNCIL APPROVED WAS 35 PERCENT OF OUR OPERATING COSTS WE SHOULD HAVE AS A RESERVE.
I AM EXCITED TO ANNOUNCE THAT WE ARE ACTUALLY AT 68 PERCENT.
WE'RE ABOVE THAT TARGET, WHICH IS GREAT BECAUSE THAT'S MORE THAN SIX MONTHS, A LITTLE OVER SIX MONTHS FOR US TO MAINTAIN OPERATIONS IN THE EVENT THAT THERE IS NO REVENUE COMING IN AND WE HAVE TO KEEP THE LIGHTS ON AND PROVIDING A SERVICE, WE CAN DO SO FOR SIX MONTHS.
>> I DO WANT TO POINT OUT THAT THE REASON WHY THE COUNCIL APPROVE THAT TO 35 PERCENT IS BECAUSE WE WANT IT TO BE ABLE TO OBTAIN A LOAN.
IT WASN'T THE CASE BEFORE, BUT IT'S GOOD TO HEAR THE WORDS 68 PERCENT.
>> ABSOLUTELY. JUST TO HIGHLIGHT THAT, THEY'RE STARTING TO BE A SHIFT WHERE NEIGHBORING CITIES UP AND DOWN THE STATE, THEY'RE STARTING TO INCREASE INSTEAD OF 30 PERCENT, 35, A LITTLE MORE BECAUSE THE COST OF LIVING INCREASES.
WE SHOULD KEEP UP WITH THAT MOMENTUM AS WELL BECAUSE WHAT WE CAN BUY TODAY WITH A DOLLAR DOES NOT MEAN WE CAN BUY THE SAME ITEM TWO-THREE YEARS FROM NOW.
OUR PURCHASING POWER, IT'S THAT MUCH LESS.
FOR THE LABOR HOUSING COMPLEX, AS THE CITY MANAGER WENT OVER AT OUR COUNCIL MEETING IN FEBRUARY, THERE'S AGREEMENTS WITH THE HIGH-SPEED RAIL AND WITH THE RAISED GRANT AND NEGOTIATIONS WITH THE CITY AS TO HOW THE DEMOLITION IS GOING TO COME ABOUT, HOW THE CITY IS GOING TO BE SEEKING GRANT FUNDING TO PAY FOR PORTIONS OF THE DEMOLITION.
IF AT ANY POINT WE CANNOT ATTAIN A GRANT FOR A CERTAIN PHASE OF THE PROJECT.
MY UNDERSTANDING IS THAT HIGH-SPEED RAIL WOULD COME IN AND SAY, OKAY, HERE IS OUT OF THE 9.3 THAT WE'VE SET ASIDE FOR THE CITY OF WASCO.
HERE IT IS. BUT I ALSO WOULD LIKE TO HIGHLIGHT THAT AT THE MOMENT THERE'S STILL NOT AN EXECUTED AGREEMENT.
THE CITY MANAGER IS CURRENTLY WORKING ON THAT.
DUE DILIGENCE IS FOR US TO KEEP THAT ASSIGNED 9.3 AND NOT UNTIL WE HAVE SOMETHING ON PAPER, THEN WE CAN HAVE THAT DISCUSSION.
BUT WE'LL COVER IN A FEW MORE SLIDES.
NOW WE'RE GOING TO FOCUS ON THE GENERAL FUND SUMMARIES.
WE'RE ANTICIPATING $12.9 MILLION WHICH IS SLIDE NUMBER 12 AND GENERAL FUND OPERATIONS AND THE TOP FOUR REVENUES ACCOUNT FOR 60 PERCENT OF THE 12.9 MILLION AND THAT IS OUR SALES TAX, OUR MEASURE X, AND OUR MOTOR VEHICLE AND NEW PROPERTY TAXES AND THE GENERAL PROPERTY TAXES.
THOSE ARE OUR FOUR MAJOR DRIVERS.
EARLIER WE COVERED A LITTLE BIT ABOUT THE PANDEMIC AND HOW HAS THAT IMPACTED US AND SLIDE NUMBER 13 ILLUSTRATES THAT STARTING FROM THE LEFT TO RIGHT IN 2019, AND '20 THE PANDEMIC STARTED IN MARCH, APRIL OF 2020.
WE GENERATED ABOUT $15 MILLION THAT CAME INTO THE CITY IN GENERAL FUND.
HERE COMES 2020, 2021, AND WE SAW ABOUT A 21 PERCENT DECLINE.
THAT'S ABOUT $11 MILLION COMPARED TO THE PRIOR YEAR.
WE'RE ANTICIPATING PROJECTING 12 MILLION BY JUNE 30TH.
[00:20:07]
THAT'S A LITTLE BIT SLIGHTLY HIGHER THAN WHAT IT WAS THE PRIOR YEAR SO IT DOES SHOW THE CURTAILING OF THE STATE BEING A LITTLE BIT MORE RELAXED WITH BUSINESSES OPENING.IT'S REFLECTED IN OUR REVENUES AND WE ARE PROJECTING IT IN OUR SALES TAX CONSULTANTS AGREE THAT WE'RE PROJECTING ABOUT 13 MILLION IN GENERAL FUND REVENUES COMING INTO THE CITY.
IF WE COMPARE THE LEFT-HAND BAR CHART WITH THE RIGHT, WE'RE STILL NOT AT PRE-PANDEMIC LEVELS, BUT WE'RE WORKING OUR WAY THERE.
SLIDE NUMBER 14, I COVERED THIS IN THE PREVIOUS SLIDE, I'LL JUMP AHEAD.
ON THE GENERAL FUND OPERATING COST WHICH IS SLIDE NUMBER 15, WE ANTICIPATE $12.8 MILLION IN OPERATING COST.
THIS DOES NOT MEAN CAPITAL IMPROVEMENT, PERSONNEL COST, REPAIRS AND MAINTENANCE AND SERVICE COSTS, SHOP FACILITY MAINTENANCE AND IT AND AS WE CAN SEE, PUBLIC SAFETY, IT ACCOUNTS FOR 44 PERCENT OF OUR OPERATING COST.
THAT IS A SIGNIFICANT OPERATING COST TO BE OPERATING.
THERE ARE SOME POSITION REQUEST ON SLIDE NUMBER 16 FROM SEVERAL DEPARTMENTS.
FROM LEFT TO RIGHT WE HAVE A STAFF ACCOUNTANT FOR THE FINANCE DEPARTMENT, AN ADMINISTRATIVE ASSISTANT FOR CODE ENFORCEMENT, FACILITY MAINTENANCE.
WE HAVE A PART-TIME TRANSIT DRIVER.
WE HAVE A MECHANIC ONE, AND A STREET MAINTENANCE WORKER.
THE TOTAL LOADED COST IS $499,000, FOR THOSE POSITIONS THAT IN THE PRIOR YEAR WE FROZE AND WE WERE BRINGING THOSE BACK.
AS IT WAS MENTIONED DURING THE PIE CHARTS, NOW WE ARE ON SLIDE NUMBER 18.
THIS IS A BREAK-UP OF WHAT MAKES UP THE 13 MILLION THAT WE ARE ANTICIPATING, WHICH IS A FAR RIGHT COLUMN, THIS '22,'23 BUDGET AND WE'RE ANTICIPATING JUST IN GENERAL PROPERTIES, A LITTLE BIT OVER A MILLION DOLLARS IN OUR PROPERTY TAXES AND IN LIEU OF MOTOR VEHICLES 3.1 MILLION.
IF YOU CAN SEE THERE'S AN ARROW AT THE VERY BOTTOM RIGHT-HAND CORNER AND THAT'S THE $12.9 MILLION THAT WE'RE ANTICIPATING FOR IT TO COME INTO THE CITY.
THAT'S AN IMPORTANT NUMBER FOR US TO HONE IN ON, BECAUSE I'M GOING TO CIRCLE BACK ON THAT NUMBER.
WE SEE THAT VERY FIRST ARROW ON SLIDE NUMBER 19.
WE SEE THAT WE ARE COVERING OPERATING COST AT $12.8 MILLION AND THE PRIOR SLIDE IT WAS 12.9 AND TO COVER OUR OPERATING COST, 4.8 AS THE CITY MANAGER MENTIONED AT THE BEGINNING OF THE WORKSHOP, IT'S A BALANCED BUDGET.
OUR CURRENT REVENUES WILL COVER OUR CURRENT OPERATING COSTS.
IF WE MOVE A LITTLE FURTHER DOWN INTO THE SLIDE, WE CAN SEE THE SECOND ARROW WHERE IT SHOWS A NEGATIVE.
WHAT THAT NEGATIVE REPRESENTS IS THAT WE ARE DIPPING INTO OUR RESERVES IN THE AMOUNT OF $1.7 MILLION.
A NATURAL QUESTION TO ASK IS, WAIT A MINUTE.
I JUST THAT SAID WE HAD A BALANCED BUDGET BUT WE'RE DIPPING IN TO OUR SAVINGS.
HOW'S THAT POSSIBLE? AGAIN, AS THE CITY MANAGER MENTIONED, THAT IS PRIMARILY DRIVEN BY OUR AGGRESSIVE CIP BUDGET AND AS WE'LL COVER IN FUTURE SLIDES.
BUT AS WE ALL KNOW, NOT ALL PROJECTS WILL BE COMPLETED THROUGHOUT THE YEAR.
IN THE GRAND SCHEME OF THINGS THIS IS THE BALANCED BUDGET BY I BELIEVE THE CITY MANAGER.
[00:25:05]
>> I THINK IT'S ALSO IMPORTANT TO REMEMBER THAT.
I DON'T KNOW ANY TIME IN THE RECENT HISTORY WHEN THE OPERATING COST BUDGET WAS ACTUALLY FULLY SPENT EITHER, THE STAFF WAS VERY GOOD ABOUT BEING FRUGAL WITH THEIR BUDGETS.
THE BUDGETS ARE REALISTIC, THEY AREN'T PADDED.
USE IT OR LOSE IT MENTALITY THERE, THEY WERE ACCURATE AS THEY CAN BE AND IT ALWAYS TURNS OUT THAT WE UNDERSTAND THAT DURING THE COURSE OF THE YEAR.
>> THIS IS ALSO STILL DEPENDING ON US MOVING SOME PROJECTS TO THE FOREFRONT IS THAT CORRECT?
>> BECAUSE YOU DON'T ANTICIPATE THE 60 SOME PROJECTS THAT ARE ON THE CIP TO BE COMPLETED AND SO THIS IS JUST SO THAT WE ARE AWARE THAT IF WE WERE TO DO THAT, WE WOULD BE 1.7 [OVERLAPPING]
>> YES, AND I THINK THERE'S A VERY LOW CHANCE OF US ACTUALLY SEEING THAT.
AS AT THE BEGINNING OF THE PRESENTATION, WE TALKED ABOUT THE 68 PERCENT UNASSIGNED FUND BALANCE TO COVER A LITTLE BIT OVER SIX MONTHS OF OUR OPERATING COSTS.
IF WE LOOK AT THE TOP RIGHT HAND SIDE, WE SEE THE 68 PERCENT.
THAT IS ACCOUNTING FOR THE $9.3 MILLION LABOR CAMP.
IF WE WERE TO BE TOLD NO CITY LAW SCHOOL, YOU ARE GOING TO BE THE ONE PAYING FOR THIS.
BUT WE LOOK AT ONCE THE AGREEMENTS ARE SET, ARE IN PLACE AND THERE'S NO LONGER THAT ASSIGNED OBLIGATION FOR THE CITY, WE'RE AT A 140 PERCENT OF UNASSIGNED FUND BALANCE.
I COMMEND THE STAFF BECAUSE IT IS TRUE WHAT THE CITY MANAGER DID SAY.
VERY FRUGAL WHEN IT COMES TO OUR OPERATING EXPENDITURES AND [NOISE] I'M STRETCHING THAT DOLLAR AS MUCH AS POSSIBLE.
>> YOU REFER AT 9.3, BUT THE FIGURE IS 8739800.
IS THERE A REASON FOR THE DISCREPANCY?
>> NO. IF WE LOOK AT THE VERY FAR RIGHT COLUMN AT THE BOTTOM OF PAGE 19, WE SEE THE $8.7 MILLION.
THAT'S THE UNASSIGNED FUND BALANCE.
RIGHT ABOVE THAT IS THE 9.3 THAT IS ASSIGNED FOR THE LABOR CAMP.
THE 8.7 IS MONEY THAT WE HAVE IN OUR SAVINGS ACCOUNT THAT WE CAN USE ON DISCRETIONARY.
THE 9.3 IS WE ARE CLAWING BACK 9.3 AND SETTING IT ASIDE FOR THIS LIABILITY.
ONCE WE HAVE THOSE AGREEMENTS IN PLACE, IT BECOMES THE 80 MILLION BECAUSE THE 9.3 GOES BACK INTO THE BUCKET OF THE 8.7.
>> NOW WE'RE GOING TO SHIFT GEARS AND WE'RE GOING INTO SLIDE NUMBER 22.
WE'RE GOING TO TALK A LITTLE BIT ABOUT THE DEPARTMENTS AND SOME OF THE THE OPERATING BUDGET CHANGES.
WE HAVE FOUR OVERARCHING BUCKETS AND HOW ALL THE DEPARTMENTS FALL WITHIN THEM.
WE HAVE SUPPORT SERVICES, WE HAVE COMMUNITY DEVELOPMENT, PUBLIC SAFETY, AND PUBLIC WORKS.
[NOISE] IN SUPPORT SERVICES, WE HAVE THE CITY COUNCIL, CITY MANAGER, MEASURE X, CITY CLERK, CITY ATTORNEY, FINANCE, HUMAN RESOURCES.
THOSE ARE DEPARTMENTS THAT PROVIDE A SERVICE TO THE ENTERPRISE FUNDS.
WE HAVE COMMUNITY DEVELOPMENT WHERE THERE'S PLANNING, THERE'S CODE ENFORCEMENT, THERE'S BUILDING INSPECTIONS, AND THERE IS ECONOMIC DEVELOPMENT AS WELL.
LASTLY, WE HAVE PUBLIC WORKS, WHICH IS OUR ENGINEERING FOR PROJECT MANAGEMENT IN OUR LLMDS, AND STREETS.
I JUMPED THIS LINE. NOW IS PAGE 24 [NOISE].
FOR PUBLIC SAFETY, WE HAVE [NOISE] THE KERN COUNTY FIRE, KERN COUNTY SHERIFF'S, AND THE ANIMAL CONTROL.
I PUT THOSE BACKWARDS [NOISE].
[00:30:01]
THE SUPPORT SERVICES I'VE MENTIONED EARLIER AND THE DEPARTMENTS THAT PROVIDE THIS SERVICE, A SUPPORT SERVICE, WE HAVE FOR THE CITY COUNCIL, WE HAVE A BUDGET OF 163,000 AND SOME OTHER SIGNIFICANT OPERATING CHANGES IS PROFESSIONAL SERVICES FOR $2,500.THE 2,500 IS FOR TRANSLATION AND ALSO FOR THE ELECTIONS THAT ARE HAPPENING ON TOWARDS NOVEMBER OF THIS CALENDAR YEAR.
FOR MEASURE X, WE HAVE SLIDE NUMBER 27.
HERE'S WHERE A LOT OF THE PROJECTS THAT THE CITY MANAGER MENTIONED ARE BEING COVERED JUST BY MEASURE X.
NOT ENTIRELY 100 PERCENT, THERE'S A PORTION OF THESE ITEMS THAT ARE COVERED BY MEASURE X.
BUT AGAIN, SOME OF THESE PROJECTS ARE NOT GOING TO BE COMPLETED BY JUNE 30TH OF THE FOLLOWING YEAR SO THEY'D BECOME CIP AND THEY ROLLOVER THE FOLLOWING YEAR.
OTHER PROJECTS ARE GOING TO MOVE UP OR DOWN IN THE PRIORITY LIST, DEPENDING ON COUNCIL'S PREFERENCE, WHICH WAS ALSO DISCUSSED DURING THE STRATEGIC GOAL SETTING.
WE ALSO HAVE MEASURE X APPROPRIATIONS, A LITTLE BIT OF THOSE PROJECT DRIVEN.
WE HAVE THE SHERIFF'S CONTRACT, WE HAVE FIRE CONTRACT, THE MAINTENANCE OF EFFORT, FLOCK SAFETY CAMERAS AND NEIGHBORHOOD CAMERA OR A REBATE, STATE BOARD OF EQUALIZATION, FARE BOX RATIO, AND TRAFFIC CALMING MEASURES STUDY AT $60,000.
IN THE CITY MANAGER DEPARTMENT FOR SLIDE NUMBER 29, WE HAVE AN OVERALL BUDGET OF $588,000 AND THERE'S A DECREASE IN COMPUTER HARDWARE AND THAT'S $2,000 [NOISE] AND AN INCREASE IN SALARIES OF 43,000.
THAT'S PRIMARILY DRIVEN BY COLA INCREASES AND SOME RECLASSIFICATIONS AND A LITTLE BIT OF THE HR ANALYST.
THEN WE MOVE ON TO THE CITY CLERK, WHICH IS PAGE 30 OR SLIDE NUMBER 30.
THAT BUDGET IS $201,000 AND SOME SIGNIFICANT OPERATING CHANGES OR SOFTWARE LICENSING OF $8,000.
THAT'S FOR OUR LASERFICHE, WHICH IS OUR SCANNING OF OUR DOCUMENTS.
WE ALSO HAVE DOCUSIGN, ADOBE RAW OR ADOBE READER.
WE ALSO HAVE THE RECORDS RETENTION.
THEN WE ALSO [NOISE] MENTIONED THE 2,500 AS WELL AT THE BOTTOM.
FOR THE CITY ATTORNEY, THERE'S NO SIGNIFICANT OPERATING CHANGES, IT'S $205,000.
MY NUMBER 32 FOR THE FINANCE DEPARTMENT HAS AN OVERALL $443,000 DEPARTMENT BUDGET.
SOME SIGNIFICANT CHANGES OR A DECREASE IN TRAVEL AND TRAINING OF $10,000 AND COMPUTER HARDWARE REDUCTION OF $3,000 AND AN INCREASE FOR THE STAFF ACCOUNTANT OF $19,000, WHICH IS THE SHARE OF THE GENERAL FUND.
THE MAJORITY OF THESE DECREASES ARE AN ATTEMPT TO BALANCE THE BUDGET WHERE CURRENT REVENUE WILL COVER CURRENT OPERATING COSTS.
THAT'S WHERE THOSE DECREASES COME WHERE STAFF WHEN LINE ITEM BY LINE ITEM TO ENSURE THAT YES, WE CAN CONTINUE TO OPERATE THE CITY WITHOUT THE CERTAIN AMOUNT OF FUNDS.
THAT'S WHERE THOSE DECREASES COME FROM.
FOR THE HUMAN RESOURCES, IT'S A 174,000 AND 55,000 OF THAT IS FOR THE HR ANALYST.
WE HAVE PROFESSIONAL SERVICES OF $4,000 AND PHYSICAL WILL BE $3,450.
>> WHAT IS COVERED UNDER PHYSICAL? I'VE READ THAT MORE THAN ONCE? YOU KNOW WHAT'S COVERED UNDER PHYSICALS?
>> OH FOR PHYSICALS IS STAFF GOING TO WHAT IS IT? IRENE OR WHAT IS IT?
[00:35:03]
>> WHEN WE SEND A DOLLAR RAID DRIVER TO GET THEIR PHYSICAL LICENSING ALSO FOR RECRUITMENT WHEN IS IN THE [OVERLAPPING].
>> I GOT. I READ IT AND I COULDN'T MAKE SENSE OF IT, SO NOW I DO. THANK YOU.
>> YOU'RE TALKING ABOUT IRENE SANCHEZ, THE OCCUPATIONAL HEALTH PLACE?
>> THANK YOU. WE HAVE ON OUR IT THERE IS NO SIGNIFICANT OPERATING CHANGE.
THAT IS $314,000 SLIDE NUMBER 34.
FOR FACILITIES MAINTENANCE, IT'S AN OVERALL BUDGET OF $563,000.
THERE'S A DECREASE IN BUILDING REPAIRS OF $18,500 AND INCREASE IN FACILITY MAINTENANCE TECHNICIAN, ROUGHLY $55,000.
>> SHOULD WE BE ASKING QUESTIONS AS THEY COME UP OR SHOULD WE WAIT UNTIL HE GOES THROUGH THE PRESENTATION?
>> I HAVE A FEELING THAT SOME QUESTIONS MIGHT BE ANSWERED AS WE GO.
>> IT MIGHT BE MORE EFFICIENT.
BUT IF THERE'S SOMETHING CRITICAL THAT'S REALLY JUST BUGGING YOU, THEN WE CERTAINLY CAN STOP.
>> NO, I'LL WAIT UNTIL THE END.
>> FOR THE FLEET DEPARTMENT, WE ARE AT 786,000 AND SOME SIGNIFICANT CHANGES IS THE REQUEST FOR A MECHANIC 1 AND TRAINING AND TRAVEL.
SLIDE NUMBER 37 FOR NON DEPARTMENTAL, IT'S $509,000 AND A DECREASE IN MISCELLANEOUS OF 3,700.
THE REASON FOR THAT DECREASE, IT'S BECAUSE WE NEED TO ASSIGN WHAT THE EXPENSE IS GOING TO BE FOR.
MISCELLANEOUS IS LIKE A BLACK HOLE THAT WE NEED TO KNOW WHAT WE'RE GOING TO BE SPENDING ON AND IF WE CANNOT ACCOUNT FOR IT, THEN WE SHOULDN'T HAVE THOSE FUNDS.
>> IT'S A GOOD ACCOUNTING PRACTICE, RIGHT?
>> THEY WENT AWAY WHEREVER WE COULD MAKE IT HAPPEN [LAUGHTER] AS WE WENT THROUGH THE BUDGET.
>> ABSOLUTELY. THERE'S AN INCREASING IN UTILITIES AND UTILITIES FOR OUR ELECTRICITY AND FOR OUR SO-CALLED GAS.
[NOISE] NOW WE'RE GOING TO SHIFT GEARS AND START WITH THE COMMUNITY DEVELOPMENT.
[NOISE] A SIGNIFICANT DECREASE IS THE SENIOR PLANNER.
IT REMAINS FROZEN, TOTALING $107,000.
WE CAN ENCIRCLE BACK AT MIDYEAR WHAT WILL HAPPEN TO THAT POSITION? THERE IS A DECREASE IN COMPUTER HARDWARE FOR $3,000, PHYSICALS, INCREASE OF 3,400, AND THE REQUEST OF AN ADMINISTRATIVE ASSISTANT FOR CODE ENFORCEMENT, PLANNING, A LITTLE BIT OF FINANCE.
THE BUILDING DIVISION, 525,000 AND A MAJOR DECREASE THERE IS $20,000 AND THAT IS WITH THE ONBOARDING OF OUR CHIEF BUILDING INSPECTOR, WHERE ON THE PRIOR YEAR, THERE WAS 20,000 EXTRA JUST TO COVER IN THE EVENT THAT THERE WAS A GAP IN EMPLOYMENT FROM THE RETIREMENT OF OUR CHIEF BUILDING INSPECTOR.
FOR CODE ENFORCEMENT, THERE IS 511,000.
HERE IT SHOWS UP AGAIN, THE ADMINISTRATIVE ASSISTANT, THE PORTION THAT'S ATTRIBUTED TO CODE ENFORCEMENT, THE $18,000, AND AN INCREASE OF 2,500 FOR PROTECTIVE VESTS.
IN ECONOMIC DEVELOPMENT, IT'S $9,000 BUDGET, AND THERE IS NO SIGNIFICANT OPERATING CHANGES.
FOR PUBLIC SAFETY OR FIRE IT IS 937,300, AND THAT IS A CONTRACT INCREASE OF $2,400 AND AS WE'VE DISCUSSED IN THE SUMMER OF LAST YEAR AND PRIOR TO THAT, WITH THE FORMER CITY MANAGER, IT IS THE COUNTY INCREASING THE FIRE CONTRACT, THE SHARE, THE COST SHARING WHERE OVER THE NEXT SEVEN YEARS THERE'S GOING TO BE A SIGNIFICANT INCREASE.
BUT RIGHT NOW IT'S PROJECTED TO BE ABOUT A LITTLE BIT OVER A MILLION DOLLARS BY THE TIME WE REACHED THE SEVENTH YEAR MARK.
[00:40:03]
>> [NOISE] I DO HAVE A QUESTION ABOUT THIS BECAUSE THAT SEEMS MINUSCULE THE INCREASE, 2,400.
THIS NEW CONTRACT WITH THEM, IT'S NOT KICKING IN NOW BECAUSE 2,400 IS NOTHING.
>> THERE IS A FIXED AMOUNT YEAR OVER YEAR AND THIS IS SOMETHING THAT WE DISCUSSED AT A RECENT MEETING ABOUT THE BUDGET ON A YEAR-TO-YEAR BASIS.
THIS LAST YEAR AND THIS YEAR WE'RE PROPOSING AGAIN TO AN ESSENCE OVER BUDGET THIS AT THE FUTURE COST OF THIS FIRE CONTRACT AND TO USE THAT SURPLUS IN THIS PARTICULAR YEAR, THAT MONEY WAS ALLOCATED TO PAY DOWN THAT PUBLIC SAFETY, PENSION LIABILITY.
NEXT YEAR WE'LL TALK ABOUT SOME OF THIS IN ONE OF THE [NOISE] NEXT WORKSHOPS OR TOMORROW NIGHT IS WHAT I ALLUDED TO WITH THESE POLICIES OF STARTING TO MEASURE X SURPLUS MONEY INTO A PUBLIC SAFETY RESTRICTED BALANCE.
IT'S MONEY THAT'S SITTING THERE IN THE BANK JUST RIGHT NEXT DOOR TO THE GENERAL FUND RESERVES BUT WE'VE EARMARKED IT FOR THE PURPOSE OF IMPLEMENTING PUBLIC SAFETY INITIATIVES, WHETHER THAT BE OUR OWN POLICE DEPARTMENT OR IF THERE'S AN OPPORTUNITY TO IMPROVE OUR TARIFFS CONTRACT OR ANYTHING ELSE TO DO WITH VALID USES OF MEASURE X FUND.
FUNDS WE'RE PROPOSING TO DO THAT.
THIS IS ONE METHOD OF DOING THAT, OF ASSUMING THAT WE HAVE THAT FUTURE COST NOW, PAYING THAT BILL, USING THE LEFTOVER TO GET US TOWARD THAT GOAL OF MORE CONTROL OVER OUR PUBLIC SAFETY REALITY AND FUTURE.
>> I THINK THAT WILL HAPPEN SHORTLY AFTER THE ADOPTION OF THIS YEAR'S BUDGET.
WE WILL START TO JUMP INTO THESE POLICY ISSUES THAT DOVETAIL WITH THIS RIGHT AWAY, LIKE THIS SUMMER, OR EARLY FALL.
>> THANK YOU. THE SHERIFF CONTRACT, THERE'S A $4.4 MILLION BUDGET AND THERE'S SOME SIGNIFICANT DECREASES OR SPECIAL EVENTS REDUCTION IN $15,000 SUPPLEMENTAL CONTRACT, 23,000 AND A DECREASE IN THE OVERALL CONTRACT OF 50,000 AND A NATURAL QUESTION WOULD BE, WHY IS THE SHERIFFS CONTRACT DECREASING WHEN IT SHOULD BE GOING THE OTHER WAY? THE SHERIFF'S CONTRACT LAST YEAR, WE BUDGETED FOR BODY CAMERAS AND THAT WAS ABOUT $50,000 THAT WE PAID IN THE PRIOR YEAR AND THEREFORE, WE NO LONGER NEED IT BE ACCOUNTING FOR THAT COST.
THAT'S WHERE THOSE 50,000 COME FROM.
>> FORGIVE ME FOR THE INTERRUPTIONS.
>> THAT LEAVES ANOTHER 38,500 THAT HAS BEEN DECREASED AND I LOOKED AT ALL OF THIS.
I HAVE THEM ALL HIGHLIGHTED ON [NOISE] THE EMAIL THAT YOU SENT.
MY QUESTION IS, WHY? WHY ARE WE HAVING THOSE DECREASES?
>> ON THE SUPPLEMENTAL CONTRACT, THAT IS A MOVING TARGET.
THE WAY THAT THE CONTRACT WAS WRITTEN IS THERE ARE SOME COSTS THAT THE SHERIFFS AREN'T GOING TO PASS ONTO THE CITY THAT THEY CAN'T MEASURE.
FOR EXAMPLE, THE INCIDENT WITH THE SWAT.
>> IN THIS SPECIAL EVENTS IS WE HAD A DECREASE IN THE NUMBER OF SPECIAL EVENTS WHERE WE NEEDED SHERIFF SUPPORT, BICYCLE RODEO WAS DEFERRED.
SOME OF THOSE COSTS HAVE DECREASED BECAUSE WE JUST STARTED DOING AS MANY SPECIAL EVENTS.
>> I UNDERSTAND IT NOW. THESE ARE EVENTS THAT WOULD HAVE HAPPENED ALREADY AND DIDN'T HAPPEN AND SO WE'RE HAVING THOSE SAVINGS BECAUSE WE'RE NOT SPENDING NOTHING?
>> YES. IF I MAY ADD ALSO, THERE WAS A SERGEANT P. MARTINEZ WHEN THERE WAS A BICYCLE PATROLS.
BUT IT ALSO CAME TO LIGHT THAT THERE NEEDS TO BE TWO OFFICERS ON BICYCLE PATROLS, BUT THEN WE ALSO NEED TO HAVE A VEHICLE AS WELL.
IT'S LIKE A TOTAL OF 3-4 OFFICERS.
THAT'S FOR THE SPECIAL EVENTS JUST GOING TO PUT THAT OUT THERE.
>> THOSE WERE THE REASONS FOR THE DECREASES.
[00:45:04]
THIS THING IS NOT HAPPENING.>> FOR ANIMAL SERVICES, $463,000 BUDGET AND A SIGNIFICANT CHANGE WAS INCREASE IN SMALL TOOLS AND EQUIPMENT TOTALING $10,000.
WE'RE MOVING ON TO SLIDE NUMBER 47 AND NOW IT'S PUBLIC WORKS.
PUBLIC WORKS WE HAVE A BUDGET OF $515,000 AND SOME SIGNIFICANT CHANGES ARE 25,000 AND UPDATING THE PYGMY MANAGEMENT SYSTEM AND GRADING AND PLANT CHECK, WHICH IS COST RECOVERED.
FOR THE STREETS, THE ONLY SIGNIFICANT CHANGE IS AN INCREASE OF 3,500 IN FUEL AS WE CAN ALL SEE AT THE PUMP.
SOME STATIONS IS CLIMBED A LITTLE BIT OVER SIX DOLLARS OR EVEN REACHED TO SEVEN DOLLARS.
THAT'S WHERE THAT INCREASE IS COMING FROM.
FOR THE SPECIAL REVENUES, SLIDE NUMBER 50.
HERE'S WHERE EARLIER IT WAS MENTIONED SOME OF THE SPECIAL REVENUES AND WHY THEY NEED TO BE ISOLATED FROM ENTERPRISE OR GENERAL GOVERNMENT REVENUES AND GAS TAXES IS ONE OF THOSE WHERE WE CAN ONLY USE GAS TAX MONIES FOR STREET PROJECTS OR OPERATING COSTS.
IF WE LOOK AT THE BOTTOM RIGHT-HAND CORNER OF THE SCREEN, WE CAN SEE THAT WE ARE PROJECTING TO RECEIVE A TOTAL OF $1.1 MILLION IN GAS TAX MONEY.
FOR THE UPCOMING BUDGET, WE'RE ANTICIPATING RECEIVING $966,000 BY THE END OF JUNE, 2022.
>> THAT PROMPTS A QUESTION IN MY MIND AND THAT IS THAT THERE HAS BEEN TALK ABOUT THE STATE REPEALING THE GAS TAX.
IF THAT OCCURS, WHICH IS UNLIKELY, BUT IF THAT WERE TO OCCUR, THAT REVENUE STREAM WOULD DRY OUT.
I'M I CORRECT IN ASSUMING THAT?
>> I BELIEVE THE WAY THAT PROPOSAL IS CURRENTLY WORDED, YES.
OR THE STATE WOULD HAVE TO BACKFILL THAT FROM SOME OTHER SOURCE.
THE PROPOSAL IS PRIMARILY POLITICAL IN NATURE TO HAVE A PERCEIVED SAVINGS WELL, AN ACTUAL SAVINGS AT THE PUMP, BUT THE MONEY WOULD HAVE TO COME FROM SOMEWHERE ELSE.
WHEN WE TALK ABOUT SACRAMENTO, ANYTHING COULD HAPPEN.
BUT GENERALLY WITH THIS KIND OF SHIFT, IT WOULD I'M FROM ANOTHER SOURCE TO BACKFILL.
>> I KNOW THAT YOU'RE EXPECTING TO RECEIVE THE 2022, $966,000, BUT IS IT WISE TO COUNT ON THAT $1,000,151? MAYBE SOMETHING THAT WE NEED TO BE CONSERVATIVE ABOUT THAT WE MIGHT NOT RECEIVE.
AGAIN, WE DON'T KNOW WHAT THEY'RE GOING TO DO.
IT'S SOMETHING TO BE MINDFUL OF.
>> THAT IS A GREAT QUESTION, MAYOR.
THAT IS SOMETHING THAT WE KEEP A CLOSE EYE ON, ON A MONTHLY BASIS BECAUSE WE RECEIVE THOSE APPORTIONMENT ON A MONTHLY.
EVERY MONTH, WE GET A SMALL LITTLE APPORTIONMENT.
BUT THEN THERE'S ALSO A REPORT THAT COMES OUT AT THE BEGINNING OF A CALENDAR YEAR AND THAT IS WHERE MOST CITIES DO SOME REFINEMENT OF WHAT THOSE REVENUES ARE GOING TO LOOK LIKE.
DID THE STATE UNDER BUDGET WHAT THEY ASSUMED THEY WERE GOING TO RECEIVE OR DO THEY OVER-BUDGET UNDER OR OVER? THAT IS WHEN WE MAKE OUR ADJUSTMENTS, WHEN WE BRING BEFORE THE COUNCIL OUR MIDYEAR BUDGET, THAT'S WHERE WE MAKE THOSE FINE TUNING.
WE KEEP A VERY CLOSE EYE ON OUR GAS TAX MONEY.
IN ADDITION TO THAT, WE ALSO HAVE HAD SEVERAL CONVERSATIONS WITH OUR HDL CONSULTANTS AS HOW SHOULD WE BE DEALING WITH THAT IF THERE IS A POSSIBLE PHASING OUT OF GAS TAX AND HOW WILL THAT BE BACKFIELD? WE ARE VERY VIGILANT WHEN IT COMES TO GAS TAXES BECAUSE IT FUNDS A LOT OF OUR STREET PROJECTS AND THE OPERATIONS AS WELL AS OUR STAFF.
>> MAYBE FROM THAT, OVER $90 BILLION SURPLUS THAT THE GOVERNOR OWES TO CITIES AND OTHERS?
[00:50:02]
>> THAT WOULD BE MY FIRST SUGGESTION. YES.
>> BUT I THINK IT IS AN EXCELLENT QUESTION AND I THINK THE COUNCIL SHOULD KNOW THAT SHOULD WE SEE THAT PROPOSAL MOVED TO PROPOSE LEGISLATION AND APPEAR TO BE GAINING ANY KIND OF TRACTION, WE CAN VERY EARLY IN THIS FISCAL BUDGET YEAR COME BACK TO YOU AND SAY, WE NEED TO MAKE SOME ADJUSTMENTS GOING FORWARD AND WE'LL BE NOT FAR INTO THIS FISCAL YEAR, WE CAN STILL MAKE SOME OF THOSE ADJUSTMENTS.
IT'S EIGHT PERCENT OF OUR ANNUAL NUMBER HERE.
SO [OVERLAPPING] IT'S A SIGNIFICANT AMOUNT, BUT NOT SOMETHING WE COULDN'T DEAL WITH IF WE HAD TO.
>> WE WILL MOVE ON. WHAT ARE SOME OF THE PROJECTS THAT THE GAS TAX IS FUNDING? THEY'RE NOT FUNDING 100 PERCENT OF THE PROJECTS, BUT AS YOU CAN SEE ON THE GREEN HIGHLIGHT, THE TOTAL PROJECT THAT WILL BE PAID OUT OF GAS TAX IN THE NEXT FIVE YEARS, $2.6 MILLION OUT OF SP1 FUNDING.
NOW WE MOVE ON TO THE LIGHTING AND LANDSCAPING.
THOSE FIGURES COME FROM OUR CONSULTANTS.
TO SOME EXTENT, SOME OF THOSE LLMD'S, THEY HAVE A CAP, THERE'S NO CPI INCREASE.
IT'S LIMITED RESOURCES THAT COME IN.
AS YOU SEE, THERE'S A SLIGHT DECREASE, $160,000 WE'RE PROJECTING FOR 22-23 BUDGET.
>> THERE'S ONLY A SELECTED LLND THAT ARE NOT SET UP.
>> SO THEY'RE NOT REALLY A BIG ISSUE.
IT WOULD BE BETTER IF THEY WERE NOT THERE THAT THEY HAD BEEN SET UP ORIGINALLY THE RIGHT WAY, BUT THINGS ARE THE THEY ARE.
THE DECREASE IS BECAUSE OF WHAT? WHAT IS THE REASON FOR THE DECREASE?
>> ALL THE DECREASE? I WOULD HAVE TO CIRCLE BACK ON THAT QUESTION.
BUT ON THAT NOTE, I DO WANT TO HIGHLIGHT THE PUBLIC WORKS DIRECTOR BECAUSE HE IS LOOKING INTO SOME DROUGHT TOLERANT VEGETATION FOR OUR LLMDS.
[LAUGHTER] IT'S ACTUALLY FUNNY.
[LAUGHTER] IF YOU CAN FIGURE OUT HOW VEGETATION CAN PRODUCE SOME LIGHT WILL BE IN GOOD SHAPE. [LAUGHTER]
>> NO. I WAS THINKING OF BUG'S LIFE.
>> WE'VE BEEN WORKING OUR FINANCE DIRECTOR PRETTY HARD.
[LAUGHTER] [OVERLAPPING] NO, HE'S DOING REALLY WELL.
>> I THINK THE POINT THAT IS, IF WE CAN REDUCE THE OVERALL MAINTENANCE AND WATER COSTS AND ENERGY COSTS FOR OUR ESTABLISHED LANDSCAPE PERIODS THAT WILL HELP OVERCOME THAT.
NO NEW LLMDS ARE DONE WITHOUT A CPI FEATURES.
>> MAYBE ALONG WITH THAT, GREENERY THAT CAN PRODUCE LIVE, WE CAN FIND SOME ROCKS THAT CAN PRODUCE WATER.
>> EXACTLY WHAT ALSO I HAD IN MIND.
>> ALSO BEFORE MOVING ON HIGHLITING THE CITY MANAGER BECAUSE SHE WAS ALSO WORKING ON SOME OF THE LNDS AND I HAD COST TO RECOVER SOME OF THOSE COST AS WELL.
JUST ADDITIONAL INFORMATION FOR THE COUNCIL.
>> NOW WE'RE GOING TO TRANSITION INTO A HIGH-SPEED RAIL PROJECTS.
STAFF CONTINUE TO HAVE THIS DISCUSSION AS TO WHETHER THIS SHOULD BE A GENERAL FUND MONEY OR SHOULD IT BE IN ITS OWN BUCKET.
THE CITY CHOOSES TO TREAT IT AS A SPECIAL REVENUE.
BECAUSE ONE, WE ACCOMPLISH TWO THINGS BY MOVING THIS $6.3 MILLION OF PROJECTS THAT THE CITY WOULD BE ABSORBING STARTING THIS FISCAL YEAR.
THAT IS IF WE WERE TO GRAB THE $6.3 MILLION AND DEPOSIT THEM INSIDE THE GENERAL FUND,
[00:55:06]
A NATURAL QUESTION TO ASK IS, ARE UNASSIGNED FUND BALANCE JUST GREW BY $6.3 MILLION OR WE CAN SPEND IT ON ANYTHING AND EVERYTHING.BUT I DON'T THINK THAT'S WISE OF US TO DO.
IN FACT, WE SHOULD PUT THAT MONEY ASIDE AND THIS IS WHERE WE CAN ONLY SPEND THE MONEY ON AND NOTHING ELSE.
WHETHER IT'S GOING TO BE FOR THE FIVE STREET PROJECTS, AS WELL AS THE MAINTENANCE TO MAINTAIN THE HIGH-SPEED RAIL STRIP THAT PASSES THROUGH MOSCOW FOR THE NEXT 15 YEARS.
THAT SHOULD BE ON ITS OWN FREE-STANDING FUND.
>> I AGREE. I THINK IT'S A GREAT IDEA.
>> IT'S EASY TO KEEP TRACK OF IT.
>> WE CERTAINLY RECOMMEND THAT AND ALL OF THE REASONS THAT WERE MENTIONED.
ACCOUNTING IS THE LEAST OF THOSE, JUST THE EASE OF ACCOUNTING.
AGAIN, I BELIEVE THAT IN THIS PARTICULAR CASE, THERE WAS MORE THAN A FAIR AMOUNT OF CONTINGENCY ADDED TO THESE NUMBERS FOR THE HIGH-SPEED RAIL PROJECTS AND I BELIEVE WE CAN GET THEM DONE AT A SAVINGS AND THEN THOSE FUNDS WOULD FREE UP ONCE THEY'RE ALL COMPLETE AND SIGNED OFF.
>> DOES THIS INCLUDE THE PEDESTRIAN UNDERPASS AND THE POST SO AVENUE MAINTENANCE?
>> IT DOES NOT. [OVERLAPPING] IT DOES NOT THOSE ARE SEPARATE FUND AND THEY'LL BE A SINGLE PAYMENT FOR THAT AS WELL.
THAT'S THE NUMBER THAT WE WERE TALKING ABOUT STRETCHING OUT TO 20 YEARS IS THE GOAL FOR RIGHT NOW.
>> BUT DO YOU PLAN TO DO THE SAME, SEPARATE THOSE FUNDS?
>> IN FACT THE DOCUMENT THAT WILL BE EXECUTED IS CALLED A SETTLEMENT AND MAINTENANCE AGREEMENT OR SETTLEMENT AGREEMENT.
I THINK THAT'S THE WISE WAY TO TREAT IT AS IF IT WAS RESTRICTED FUNDS THAT COME IN FOR AS A RESULT OF THIS NEGOTIATION AND THEY'RE SET ASIDE AND WE JUST CHARGED PROJECTS AGAINST THAT AS WE GO.
THEY NEED TO BE DONE AND IF WE DO THEM PRUDENTLY AND FRUGALLY THEN THERE'S NO CLAW-BACK PROVISION IN THESE AGREEMENTS.
>> THAT'S GOOD. IT'S MEANS THEIR PRICE FERNANDEZ ALLUDED TO, THERE'S ONE SYSTEM, THE GENERAL FUND, ANYBODY CAN THINK THAT HEY, BUT MONEY IS THERE, WE CAN SPEND IT. THAT WOULD NOT BE WISE.
>> THAT WOULD NOT. BEFORE MOVING ON TO THE FOLLOWING SLIDE.
AS WE CAN SEE, WE BROKE OUT PROFESSIONAL SERVICES, 500,000.
THAT IS FOR POSSIBLE AGREEMENT WITH AN ENGINEERING FIRM.
THAT IS TO MANAGE THESE FIVE PROJECTS THAT WE'RE GOING TO SEE IN THE FOLLOWING SLIDE.
BECAUSE IT WILL TAKE TWO FULL-TIME ENGINEERS TO DO THE PROJECT MANAGEMENT.
THE CITY NEVER ANTICIPATED ABSORBING AND THAT STILL DOESN'T TAKE AWAY FROM OUR PUBLIC WORKS DIRECTOR AND THE STAFF FOR FINANCE FOR CITY HALL TO REVIEW ALL OF THE RECORDS OR INFORMATION THAT THESE ENGINEERS PROVIDE TO US.
EVEN THOUGH THAT 500,000 IS A CARVING OUT OF THE 6.3.
THAT IS, THERE'S STILL A CITY STAFFING SOME TIME THAT'S GOING TO BE REQUIRED FOR THE REVIEW, BUT I JUST WANTED TO HIGHLIGHT THAT AS WELL.
IN ADDITION TO THE OVER 77 PROJECTS WELL, IT INCLUDES THE 77.
THESE ARE ADDITIONAL PROJECTS THAT WERE NOT INITIALLY IN OUR CURRENT CIP BUDGET.
>> HERE IS A DETAILED BREAKDOWN OF THE FIVE PROJECTS.
WE HAVE 13TH STREET IMPROVEMENTS, 12TH STREET, THE UNDERGRADS, PUZZLE, ALLEY, REHAB, THE J&H 3 SEWER CONNECTIONS 63 CLOSURE AND WE HAVE WELL 13TH, REPLACING WITH WELL NUMBER 9.
THAT'S WHERE THE 6.3 TOTAL AMOUNT COMES FROM.
>> NOW, THE 12TH STREET, WAIT FOR A SECOND.
THE J STREET TO H STREET SEWER CONNECTION THAT IS IN THE CIP, IS THAT CORRECT?
[01:00:05]
>> EACH OF THESE ARE IN THE CIP [OVERLAPPING].
>> WHICH WILL HAVE A MUCH MORE COMPREHENSIVE DISCUSSION OF THEM, BUT EACH OF THESE WILL APPEAR IN THE CIP, BUT IT'LL SHOW THE FUNDING SOURCES BEING FROM THIS SETTLEMENT AGREEMENT.
>> WE MOVE ON TO THE CAPITAL PROJECTS.
>> ON PAGE 58 WE SEE [NOISE] WE HAVE A TOTAL.
IF WE START FROM THE LEFT-HAND SIDE, WE HAVE $103 MILLION WORTH OF PROJECTS FOR THE NEXT FIVE YEARS.
IT'S A VERY AGGRESSIVE CIP AND JUST IN THE UPCOMING YEAR, IT'S $19 MILLION WITH THE PROJECTS, WHICH IS VERY AGGRESSIVE.
I KNOW I CONTINUE TO SAY AGGRESSIVE IN THE CITY MANAGER AS WELL, BUT IT'S WORTH MENTIONING HOW AGGRESSIVE WE ARE WITH THESE PROJECTS. YES, ABSOLUTELY.
>> JUST FOR THIS ACRONYM DON'T MEAN, WHAT DOES CIP STANDARD FOR?
>> A CAPITAL IMPROVEMENT PROGRAM.
ANY OF THESE ACRONYMS STOP US AND GET AN IDEA.
BUT I THINK WE'VE TALKED ABOUT IT BRIEFLY BEFORE, BUT JUST TO REMIND EVERYONE, THERE ARE SOME OF THE GRANT PROGRAMS THAT WE INVESTIGATE WHERE IF YOU DON'T HAVE A PROJECT ON YOUR LIST, YOU'RE EITHER DISQUALIFIED OR YOUR ODDS OF ACHIEVING THAT ARE BEING SELECTED FOR THAT GRANT FOR THEM.
THEY WANT TO KNOW YOU'RE SERIOUS ABOUT THIS PROJECT.
HE DIDN'T MAKE SOMETHING UP JUST TO GET ON THEIR LIST TO TRY TO GRAB THE MONEY.
THAT'S ANOTHER REASON THAT WE HAVE EYES BIGGER THAN STOMACH.
ON THE CIP LIST IS WE WANT TO MAKE SURE THAT THE THINGS WE KNOW ARE OUT THERE EVEN IF THEY'RE AT THE HORIZON RIGHT NOW, THAT WE'RE IN A POSITION TO TAKE ADVANTAGE OF FUNDING OPPORTUNITIES AS THEY COME ALONG, WE CAN ALWAYS MOVE AN ITEM UP THE PRIORITY LIST, SHOULD THERE BE A WAY TO PAY FOR IT PRESENTED.
>> THIS IS WHAT ENTITIES CALLED SHOVEL-READY PROJECTS.
>> THAT'S A BIG PIECE OF IT. YES.
>> THAT'S WHAT THEY'RE LOOKING FOR.
>> THANK YOU FOR THE EXPLANATION. PLEASE PROCEED.
>> THANK YOU. THIS IS JUST A DIFFERENT VIEWPOINT OF THE 103.
NOW, WE HAVE CITY BUILDING AND FACILITIES, PARK IMPROVEMENTS, TREAT TRANSPORTATION ON SLIDE 59, AND WASTEWATER, WATER SANITATION, CNG, AND TRANSIT.
FROM WASTEWATER DOWN THOSE WILL COVER ON WEDNESDAY THAT IT JUST GOES TO SHOW THE TOTAL DOLLAR AMOUNT BY DIVISION AND FUND.
WE CAN GET AT A VERY HIGH LEVEL OVERVIEW OF OUR CIP CAPITAL IMPROVEMENT PROGRAM.
[NOISE] NOW JUST ON THE GENERAL FUND SIDE, HERE ARE SOME OF THE PROJECTS THAT THE GENERAL FUND WILL BE FUNDING.
A FEW MINUTES IT'S HELPFUL TO REVIEW.
>> PAGE 60, AND IT'S A TOTAL OF $11 MILLION AND BY WITHIN FIVE YEARS AND FOR THE UPCOMING YEARS, IT'S ROUGHLY ABOUT 485,000.
JUST THE PROJECTS THAT ARE FUNDED IN FULL OR PARTIAL BY THE GENERAL FUND.
THE ONES THAT ARE PARTIAL ARE THE ONES WITH THE LITTLE ASTERISK ON THURSDAY IN THE END OF THE DESCRIPTION.
>> CAN YOU GO BACK TO SLIDE 58, REAL QUICK QUESTION.
>> THE 103,000 OR 103 MILLION, IS THERE A FIVE-YEAR PROJECTION? HOW COME THE FIVE-YEARS DON'T ADD UP TO 103 MILLION?
>> GO BACK ONE MORE, ONE MORE SLIDE.
>> ISN'T IT OFF BY LIKE 20 MILLION?
ARE THERE OTHER EXPENSES OVER THE PAST YEAR FIVE,
[01:05:04]
THE CARRY-FORWARD COLD, [OVERLAPPING].>> THOSE ARE IN PREVIOUS YEAR, SO WE NEED ANOTHER COLUMN THAT'S CURRENT YEAR OR CARRYOVERS.
[OVERLAPPING] THAT'S THE CARRY-FORWARDS.
>> WHERE IS THIS ONE? [NOISE].
>> FOR GRANTS, IN THE NEXT FIVE YEARS WE HAVE A TOTAL OF TEN MILLION DOLLARS WORTH OF GRANTS THAT WE'VE APPLIED.
FOR THE MAJORITY OF THEM, WE'VE ALREADY RECEIVED AN AWARD LETTER.
WITHOUT GOING INTO THE DETAILS, THE OTHER FIVE MILLION DOLLARS OR THE SEVENTH STREET, WE HAVE THE CENTRAL PART FOR THE 2.1 CENTRAL AVENUE NEIGHBORHOOD PARK.
WE ALSO HAVE SOME VOUCHERS OR SOME OF THE TRANSIT BUS OR A VAN.
THEN WE'RE LOOKING INTO PURCHASING A PUBLIC TRANSIT IN A GRANT WRITING.
THEY'RE VERY AGGRESSIVE WHEN IT COMES TO LOOKING FOR GRANTS AND CHARGING STATIONS AND WHERE ARE WE GOING TO HAVE THIS INFRASTRUCTURE NOT ONLY FOR OUR FLEET BUT ALSO FOR THE PUBLIC.
AS THE STATE AND THE FEDERAL GOVERNMENT ARE MAKING A BIG PUSH TOWARDS ELECTRIC VEHICLES.
THIS YEAR FOR THE NEXT TWO YEARS NOT FIVE YEARS.
>> IT'S A SPAN OF THE FIVE YEARS, BUT AFTER 2024-2025 THERE IS NO GRANTS THOUGH.[OVERLAPPING].
>> ANTICIPATE COMPLETING ALL THE PROJECTS.
>> JUST TO BE CLEAR. WHEN THESE FUNDS WERE AWARDED TO US, THEY HAVE A DEADLINE TO BE COMPLETED.
WHEN THEY APPEAR HERE IN THE 2022-2023 AND 2023-24, MY ASSUMPTION IS THAT THEY NEED TO BE COMPLETED IN THE COLUMN THAT THEY'RE IN, IN ORDER FOR US TO BE ABLE TO RECEIVE THOSE MONIES OR KEEP THOSE MONIES.
>> OKAY. FOR EXAMPLE, THE SEVENTH STREET, THERE'S A TWO-YEAR WINDOW FOR US TO START AND COMPLETE THE PROJECT.
THAT'S WHY THERE'S A PORTION OF THOSE FIVE MILLION IS IN THE UPCOMING FISCAL YEAR AND THE OTHER PORTION WILL BE IN UPCOMING YEAR.
OTHERWISE, WE HAVE TO RETURN THE FUNDING.
FOR THE VOUCHERS AS SOON AS JULY 1ST COMES AROUND, APPELLATE COURTS DIRECTORS WORKING ON SOME OF THOSE PURCHASES AND TO UTILIZE THOSE VOUCHERS.
THAT IS THE END OF THE GENERAL FUND AND SPECIAL REVENUE PRESENTATION.
IF THE COUNCIL HAS ANY QUESTIONS? [OVERLAPPING]
>> THANK YOU. MR. PEREZ HERNANDEZ, WE APPRECIATE YOUR PRESENTATION VERY THOROUGH.
ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? SEEING NONE. MADAM CLERK, DO WE HAVE ANY EMAIL COMMENTS ON THIS ITEMS?
>> WE DO NOT HAVE ANY EMAIL COMMENTS.
>> ANY COMMENTS FROM THE MEMBERS, MAYOR PRO TEM?
>> THANK YOU. I HAVE NO PARTICULAR QUESTION, BUT JUST A CLARIFICATION.
YOU MENTIONED THAT THE GAS TAX CAN ONLY BE USED FOR STREET PROJECTS.
>> IN STREET MAINTENANCE? THAT CAN BE THE STORM DRAINS, SIDEWALK REPAIRS, THINGS THAT ARE IN THE RIGHT-OF-WAY.
>> BUT NOTHING ADMINISTRATIVE OR ANYTHING LIKE THAT, CORRECT?
>> JUST ON THE PERSONNEL COSTS, JUST COVERING THE SALARY OR BENEFITS THAT'S A PIECE OF OPERATIONS.
IT WAS BACK IN THE VERY FRONT OF IT AND I THOUGHT I GOT TO THE END HERE.
I MENTIONED ABOUT THE UNEMPLOYMENT RATE BEING SUCH IN THERE, BUT CREATED 500,000 JOBS.
IS THAT IN THE UNITED STATES OR THE STATE OF CALIFORNIA?
>> THAT'S IN THE UNITED STATES.
THAT'S THE BUREAU LABOR STATISTICS AND THEY PUBLISH THAT ONCE A MONTH.
I CAN PROVIDE THE [OVERLAPPING] SUBJECT.
>> THAT'S OKAY. I JUST WANT TO KNOW WHERE THAT CAME FROM.
[01:10:01]
>> IT'S GOT TO BE A NATIONAL NUMBER BECAUSE WE ARE THAT BIG [LAUGHTER].
>> WE'RE BIG BUT NOT THAT BIG.
>> THANK YOU. MR. LYNCH. MEMBER MARTINEZ?
>> YES. I JUST HAD A QUICK QUESTION BACK ON THE SHERIFF'S BUDGET.
WE DECREASED OUR SUPPLEMENTAL CONTRACT BUDGET BY $23,000.
DOES THAT MEAN THAT THIS YEAR, EVEN WITH ALL THE SUPPLEMENTAL BILLS WE GOT FOR THE COMPASS SITUATION AND ALL THAT.
WE WERE $23,000 UNDER WHAT WE BUDGETED LAST YEAR IS THAT WAY TO DECREASE.
>> WHERE DID THAT NUMBER END UP?
>> NO, THAT ENDED UP AT 43,000.
THAT WAS A NEGOTIATION BETWEEN CITY MANAGER AND AGAIN.
>> BUT THE QUESTION IS ACTUALLY.
>> BASICALLY WITH OUR CAMPUS SITUATION, I'M SURE WHATEVER WE SET ASIDE AS A SUPPLEMENTAL, WE PROBABLY WENT OVER LAST YEAR.
HOW WE CAME AT THE DECREASE IN THE BUDGET IF WE WENT OVER IN THAT CATEGORY THIS YEAR AND THAT'S WHAT I WAS JUST TRYING TO UNDERSTAND.
I KNOW THAT'S A ONETIME THING.
HOPEFULLY IT'S NEVER GOING TO HAPPEN AGAIN IN THE CITY, BUT AM JUST CURIOUS.
>> AS IT WAS MENTIONED, IT'S A MOVING TARGET.
IT'S VERY DIFFICULT TO ANTICIPATE AND HAVE A CRYSTAL BALL.
WHAT ARE THE SUPPLEMENTAL COST? ONE OF THE APPROACHES WE'VE TAKEN IS AS SOON AS SOMETHING THAT'S URGENT THAT COMES ABOUT, WE WOULD COME TO THE COUNCIL AND EVEN BEFORE THAT INVOICE COMES ABOUT, START THAT COMMUNICATION WITH THE COUNTY AND BRING BEFORE THE COUNCIL.
THIS IS WHAT WE ANTICIPATE THE COST IS GOING TO BE FOR THIS TYPE OF SPECIAL SERVICE AND THEN APPROPRIATE THOSE FUNDS AT THAT POINT.
BECAUSE IF WE PUT TOO MUCH, THEN WE'RE JUST LOCKING UP THAT MONEY THAT WE CAN THEREFORE USE FOR OTHER GENERAL GOVERNMENT SERVICES BUT A VERY GOOD QUESTION.
>> BUT IF WE SEEM UNCERTAIN ABOUT THAT ANSWER, I HAVE A MEETING WITH THE SHERIFF LATER THIS WEEK.
THESE ARE SOME OF THE THINGS I HOPE TO HAVE A MUCH MORE CONFIDENCE ANSWER FOR FOLLOWING THAT MEETING.
IT IS A BIT OF A MOVING TARGET AND THEY HAVE A SPREADSHEET THEY USE TO DETERMINE WHERE A CONTRACT AMOUNT IS.
EVEN THOUGH WE HAVE A COPY OF IT, WE DON'T ALWAYS UNDERSTAND HOW IT WORKS.
>> I'LL JUST EXPAND A LITTLE BIT ON THAT.
I KNOW THEIR ABILITY TO ACTUALLY KEEP A GOOD RECORD OF MANY OF THE THINGS THEY DO IS NEARLY IMPOSSIBLE FOR THEM TO DO THAT.
THEY CANNOT PRESENT TO US A CLEAR, WHAT DO YOU CALL IT? ACCOUNTING, WHAT ARE THE HOURS WERE SPENT, THAT THING.
THAT'S THE WAY I UNDERSTAND IT.
>> PART OF IT IS BECAUSE OF THE CIRCUMSTANCES THAT THE DEPARTMENT, THE OFFICE THEMSELVES, THEY FIND THEMSELVES WITH COVERING SHIFTS WITH OVERTIME THAT WEREN'T INTENDED TO BE RUN WITH OVERTIME.
THE COSTS CHANGE WEEKLY WHEN THE SCHEDULES ARE SET UP.
WE'VE TALKED ABOUT THE JUST THE GENERAL CHALLENGES AND KEEPING THEIR POSITIONS FILLED.
THEREFORE, WE HAVE A SITUATION OUT HERE WHERE IF THEY'RE DOWN A DEPUTY OR TWO, THEN THEY HAVE TO BACK FILL THOSE FROM ANOTHER POSITION.
OR THE SERGEANT FILLS THAT SHIFT OR WHATNOT.
THERE ARE STILL COSTS THERE, BUT THE COST OF DELIVERING THAT BODY ON THAT DAY CHANGE.
>> BUT FOR US, IF WE GOT SOMEBODY ON OVER TIME, THAT ACTUALLY SAVES US MONEY BECAUSE WE'RE NOT PAYING THEIR FULL SALARY, LOT OF SALARY PRICE.
BECAUSE WE COVER BASICALLY THE COST FOR THE INSURANCE TO RETIREMENT, ALL THAT STUFF FOR THE DEPUTIES ASSIGNED HERE.
>> BUT THE OVERTIME THEY'RE PAYING COMES OUT IN THIS CALCULATION THAT THEY DO TO SET THESE RATES.
THERE'S A TRUE UP THAT HAPPENS ON A QUARTERLY BASIS.
>> YEAH. I THINK THERE ARE SOME GREATER ISSUES THERE.
YOU MENTIONED THAT THE ABILITY FOR THEM TO KEEP THE NUMBER OF ASSIGNED DEPUTIES WITHIN OUR CITY.
HOW ARE THEY ACCOUNTING FOR THAT? I HAVE NO IDEA AND WHETHER WE ARE EVEN AWARE OF IT OURSELVES. I DON'T KNOW THAT.
I DID PRINT THE INTRODUCTION TO THIS PROGRAM [OVERLAPPING].
>> YEAH, THAT'S MAILED OUT 15 PAGES LONG.
I WENT THROUGH IT AND I HAD SOME QUESTIONS.
SOME OF THEM HAVE BEEN ANSWERED ALREADY.
FOR EXAMPLE, ABOUT THE SHERIFF.
I WAS WONDERING WHY IN THE TIME THAT WE ARE HAVING ISSUES,
[01:15:01]
THAT'S NO SECRET TO ANYONE THAT WE WERE REDUCING THE AMOUNT THAT WE WERE SPENDING ON THE SHERIFF.I WAS WONDERING WHERE THOSE MONIES WERE COMING FROM.
I DO WANT TO POINT OUT SOMETHING THAT IS IMPORTANT THAT WE BE AWARE THAT WE'RE SPENDING ABOUT $500,000, HALF A MILLION DOLLARS, THIS WOULD BE SALARIES AND SEVEN NEW POSITIONS, I BELIEVE. IS THAT CORRECT?
>> THESE ARE NEW AND FROZEN POSITIONS THAT WEREN'T FILLED PRIOR.
>> RIGHT. YOU HAD EIGHT AND YOU HAVE DECIDED TO JUST KEEP ONE FROZEN AND THEN THE OTHER ONES ARE BEING FILLED.
I BELIEVE OUR STAFF DOES A GREAT JOB.
I DO KNOW THOUGH, THAT SOME OF THEM ARE NOT DOING A GREAT JOB.
I'M NOT GOING TO POINT OUT ANYONE IN PARTICULAR.
BUT I WOULD BE CONCERNED IF WE ARE PROVIDING ADDITIONAL PERSONNEL WHERE SOMEBODY IS NOT PERFORMING THEIR JOB.
I WOULD ASK YOU TO LOOK CAREFULLY INTO THAT.
I'M NOT GOING TO PUBLICLY SAY WHO I'M CONCERNED ABOUT.
BUT DEFINITELY IT'S SOMETHING THAT WE NEED TO BE VERY AWARE OF.
THEN I ALSO NOTICE ON THIS CHART, IT REPEATS ITSELF.
SOME OF THEM, I UNDERSTAND COMPUTER HARDWARE FOR FINANCE, THEY'RE NOT SPENDING THE MONEY.
I GUESS THEY DON'T NEED THE COMPUTERS THAT THEY WERE GOING TO BUY OR THEY HAVE ALREADY UP-TO-DATE COMPUTERS.
BUT I ALSO NOTICED THAT CAUGHT MY ATTENTION.
THAT IS SOME OF OUR INSURANCE.
I'M WONDERING HOW THAT IS HAPPENING, THERE'S ALSO SOME ERRORS IN NUMBERS HERE AND I DON'T KNOW WHERE THIS CAME FROM, BUT IF YOU LOOK AT A BUILDING, FOR EXAMPLE, ON THIS CHART, IT SAYS GROUP INSURANCE, 50,300 IT WAS REDUCED TO 8,077.
I THINK IF THE FIGURE ON THE RIGHT IS CORRECT THEN IT WAS REDUCED TO 47,500.
I'M ASSUMING THAT THE FIGURES ON THE RIGHT OF THIS CHART ARE ALL CORRECT, BUT I DON'T KNOW.
>> LET'S SEE IF THE CLERK COULD BRING UP A COPY.
>> THIS ONE RIGHT HERE, BECAUSE WE WILL BE ABLE TO TELL.
>> THIS IS WHAT IT LOOKS LIKE, IT SURE LOOKS LIKE AN EMAIL.
>> I BELIEVE THAT YOU ARE CORRECT, IRENE, THAT THE NUMBER ON THE RIGHT-HAND COLUMN IS CORRECT.
WE RAN ACROSS A COUPLE OF THE COMPARISON NUMBERS WHEN WE'RE DOING OUR REVIEW OVER THE WEEKEND WHERE THEY DIDN'T ADD UP.
LET'S FIND THAT PARTICULAR INSTANCE.
>> JUST FOR THE RECORD, I FIGURED IT OUT.
I FIGURED THAT YOU WOULD NOT BE HAVING A REDUCTION OF $42,223 ON A PARTICULAR GROUP INSURANCE.
BUT NEVERTHELESS, THERE IS A REDUCTION IN THAT ONE AND THERE'S OTHERS THAT HAVE THE SAME DESCRIPTION.
GROUP INSURANCE FROM 41,000-38,500, A PROJECT REDUCTION OF 3,300.
MY QUESTION IS TO YOU, WHY ARE WE HAVING A REDUCTION IN INSURANCE IN THIS PARTICULAR INSTANCE?
>> I BELIEVE THAT THERE WAS A REPORT EARLIER THIS YEAR OR MAYBE LATE LAST YEAR WHEN THE PART OF THE SELF-INSURANCE CO-OP, AND IF OUR EXPERIENCE RATE HAS GONE DOWN, THEN OUR OVERALL RATES FOR SCHEDULED PAYMENTS GO DOWN AS WELL.
THAT'S ONE PART OF THE EXPLANATION I BELIEVE, AND THE OTHER IS THERE MAY HAVE BEEN SHIFTS FROM THE RATIO THAT'S DISTRIBUTED TO THE DIFFERENT DEPARTMENTS.
SOME MAY GO DOWN WHILE THERE'S EITHER REMAIN OR GO UP.
BUT OVERALL, I BELIEVE THERE WAS AN EXPERIENCE RATE ADJUSTMENT DUE TO A LOWER NUMBER OF CLAIMS IN THE PREVIOUS YEAR.
>> BECAUSE SOME OF THESE ARE SIGNIFICANT.
THERE'S ONE HERE FOR $21,700 REDUCTION.
I JUST WANTED TO BE CLEAR AS TO WHY THAT'S HAPPENING.
THAT SEEMS LIKE A HUGE REDUCTION IS GOOD.
IF WE'RE STILL HAVING THE SAME COVERAGE FOR OUR EMPLOYEES, I'M ALL FOR IT, BUT IT'S SOMEHOW WE'RE CUTTING CORNERS AND TRYING TO REDUCE THE PROTECTIONS THAT ARE AFFORDED BY THE INSURANCE AND I WILL NOT BE FOR IT.
I'M NOT SAYING THAT'S WHAT YOU'RE DOING.
>> NO. I CAN TELL YOU FOR SURE THAT IS NOT PART OF THE EQUATION HERE.
[01:20:06]
WE HAVE NOT REDUCED THE COVERAGE LEVELS.THE PLAN GETS RE-BID AND AWARDED ON A REGULAR BASIS.
WE HAVE ADJUSTMENTS, BUT EXPERIENCE RATE WOULD BE THE LARGEST DRIVER.
I THINK WE CAN DO SOME RESEARCH ALSO MAKE SURE THAT THAT'S SPECIFICALLY HEALTH INSURANCE AND IT'S NOT PART OF OUR LIFE.
>> I WOULD LIKE TO ALSO ADD THAT THIS PAST YEAR, IT WAS A LARGE WAVE OF RETIREMENT OF STAFF.
THAT IS A BIG CONTRIBUTOR WHEN IT COMES TO HEALTH INSURANCE AS WELL.
WHERE IF WE WERE TO COMPARE TO LAST YEAR JUST ON OUR RETIREMENT REPORTINGS, ALMOST HALF OF OUR STAFF WAS A CLASSIC ONE TIER MEMBERS THAT THEY WERE WITH THE CITY PRIOR TO 2010 OR 2011.
NOW, THERE'S SIGNIFICANT SHIFT WHERE NOW EVERYONE IS A PEPPER AND IT'S A YOUNGER WORKFORCE.
THAT ALSO PLAYS A BIG ROLE IN CALCULATING OUR COSTS AS WELL.
IF YOU COULD JUST PROVIDE ME WITH SPECIFIC ANSWER ABOUT THAT, THAT WOULD BE GREAT.
>> I'M SURE WE CAN COME UP WITH THAT.
>> THEN THE OTHER ONE THAT CAUGHT MY ATTENTION IS PROFESSIONAL SERVICE.
THERE'S A REDUCTION IN PROFESSIONAL SERVICES IN SEVERAL OF THIS DEPARTMENTS.
I'M LOOKING, FOR EXAMPLE AT SANITATION, THERE IS A REDUCTION OF $25,000 IN PROFESSIONAL SERVICES.
>> I KNOW THAT THOSE WERE LABELED TO PROVIDE A BALANCED BUDGET.
I HOPE THAT WE'RE NOT SHOOTING OURSELVES ON THE FOOT.
IF WE'RE DECIDING THAT WE'RE NOT GOING TO HIRE THOSE PROFESSIONAL SERVICES THAT WE NEED BECAUSE WE DO THAT ALL THE TIME AND I'M CERTAIN WE WOULDN'T DO THAT, BUT IT'S MY JOB TO BRING IT UP.
I JUST WANT TO MAKE SURE THAT THAT'S NOT WHAT'S HAPPENING.
>> YOU ARE CORRECT ME OR THAT IS NOT WHAT IS HAPPENING.
THE REASON FOR THE REDUCTION IS THIS PAST APRIL, THE STAFF BROUGHT BEFORE YOU, THE SANITATION RATES.
A LARGE PORTION OF THAT WAS THE CONSULTANTS, ARE THREE CONSULTING GROUP PROVIDING THE SPECIALIZED SERVICES FOR THE PUBLIC WORKS DEPARTMENT IN FINANCE.
SINCE THAT HAS COME TO AN END, AND I DON'T THINK IT'S PRUNING FOR US TO BUDGET FOR A PROFESSIONAL SERVICE THAT WE WON'T NEED FOR THE NEXT FIVE YEARS.
>> THAT MAKES ABSOLUTE SENSE TO ME.
I DO WANT YOU TO KNOW THERE'S OTHERS THAT ARE LABELED AS SUCH.
THEN WITHOUT GOING THROUGH EACH ONE OF THEM, THERE'S ALSO THE ONE THAT CAUGHT MY ATTENTION IS THE BUILDING REPAIR FOR FACILITIES, A REDUCTION OF $18,500 AND I WAS WONDERING WHY THAT IS.
>> THEIR LABOR REDUCTION TO BALANCE BUDGET.
THAT'S WHAT THE LABEL. IF FLACCID FOR ME.
>> THE REDUCTION ON THAT IS THERE WAS SOME BUDGETING THAT NEEDED TO HAPPEN WHEN THERE IS SOME MAJOR REPAIRS NEEDED TO HAPPEN IN THE FINANCE AND PLANNING BUILDING, AS WELL AS FOR THE SHERIFF'S DEPARTMENT BUILDING.
SINCE IT WAS SOMETHING THAT WAS AN EMERGENCY, WE HAD TO ADDRESS AT THAT POINT IN TIME, SO WE BROUGHT BEFORE THE COUNCIL A REPORT.
THIS IS WHAT THE COST IS, EMERGENCY REPAIRS, ALL OF THE DAMAGE THAT IT CAUSED TO THE INTERIOR STRUCTURE OF THE BUILDING.
THAT'S WHERE THAT REDUCTION COMES FROM.
THE REPAIR HAS BEEN MADE, THE SHINGLES, THE ROOF HAVE BEEN REPAIRED.
>> IT'S ALL TIED BACK TO THESE ROOFING PROBLEMS THAT WE'VE HAD FOR A FEW YEARS AND WERE RESOLVED LAST SUMMER.
>> WELL, IT MAKES PERFECT SENSE.
>> SEE, IT'S GOOD TO ASK QUESTIONS.
>> YES. BUT I THINK WE ALL AGREE THAT THE REDUCTIONS THAT WE'RE SEEING, THEIR PURPOSE WAS NOT TO BALANCE THE BUDGET.
>> BUT THAT'S WHAT THEY'RE [INAUDIBLE]
>> THEIR EFFECT [LAUGHTER] WAS TO HELP BALANCE THE BUDGET.
I DON'T THINK WE CUT BUDGETS IN ANY CASE TO BEYOND WHAT WE DEEMED AS BEING PRUDENT AND THAT IT WASN'T GOING TO RESULT IN A REDUCTION OF QUALITY OR THE QUANTITY OF SERVICE.
IT WAS JUST A RECOGNITION THAT, "HEY,
[01:25:02]
WE [NOISE] BUDGETED TOO MUCH FOR THIS OR THERE'S AN OPPORTUNITY BECAUSE OF THESE KINDS OF TIMING OF THE REPAIRS [NOISE] AND SO FORTH.HEY, WE CAN CUT BACK ON THIS BECAUSE WE DON'T EXPECT THESE ISSUES TO KEEP RECURRING."
DURING THE BUDGET PROCESSORS, THESE BUDGET INSTRUCTIONS THAT ARE SENT OUT TO ALL THE DEPARTMENT HEADS, TO ALL OF THE SUPERVISORS, AND THERE'S A LITTLE SLIVER WITHIN THE INSTRUCTIONS WHERE IF THERE'S ANYTHING OVER $5,000 WHETHER IT'S OPERATING COSTS OR A CAPITAL, YOU NEED TO BREAK THAT NUMBER DOWN FOR ME.
BECAUSE ONE, IT TELLS A STORY FOR THE CITY MANAGER TO REVIEW AND FOR THE DEPARTMENTS, AS WELL AS THEY WERE TASKED WITH GOING BACK AND LOOKING AT EVERY LINE ITEM.
DOES THAT MAKE SENSE? IF YOU CANNOT EXPLAIN TO FINANCE AND CITY MANAGER, WHY IS THAT YOU'RE REQUESTING FOR A $10,000 WHEN THE ITEMS YOU'VE LISTED DON'T ADD UP TO THAT, THEN THAT'S A DISCUSSION THAT WE ALL NEED TO HAVE.
THERE'S SOME DEPARTMENTS THAT THEY'VE GONE TO THE EXTENT THAT ANYTHING OVER A 1,000, THEY WANT TO KEEP AN ITEMIZED LIST FOR THEMSELVES BECAUSE COME MID-YEAR, THEY WANT TO KNOW, DID I SPEND THIS MONEY OR NO, DON'T TOUCH THAT AREA BECAUSE I KNOW I'M GOING TO BE UTILIZING IN THE SECOND HALF OF THE FISCAL YEAR.
I KNOW IT'S A TEDIOUS TASK, BUT WE NEED TO MAKE SURE THAT EVERY DOLLAR IS ACCOUNTED FOR.
>> I AGREE, EXCELLENT ACCOUNTABILITY.
>> THAT DISCUSSION DID HAPPEN.
IT HAPPENED [LAUGHTER] WITH DEPARTMENT HEADS.
I CAN TELL YOU AS A FORMER DEPARTMENT HEAD THAT I FOUND THAT USEFUL BECAUSE I'M IN APRIL OF NEXT YEAR OR FEBRUARY OF NEXT YEAR.
I MAY NOT REMEMBER WHAT MADE UP THAT $4,000 THAT I'VE PUT ON THE BUDGET.
BUT IF I'VE GOT THESE NOTES IN THE BUDGET DEVELOPMENT PROCESS, I CAN REMEMBER AND PROPERLY CHARGE THE THINGS AS THEY COME IN DURING THE COURSE OF THE YEAR.
BECAUSE AS YOU CAN SEE FROM THE LIST AND WITH 77 CAPITAL PROJECTS, IT'S COMPLICATED JUST MAKING SURE THAT EVERYTHING THAT WE'VE BUDGETED [NOISE] AS THE PROJECT AS INVOICES COME IN, MAKE SURE THEY GET BILLED TO THE PROPER PLACE.
HAVING THIS REMINDER, I THINK IT'S GOING TO PAY DIVIDENDS THIS YEAR.
>> THE WORD THAT YOU USE IN THE BEGINNING, AGGRESSIVE?
I WENT THROUGH EACH ONE OF THEM AND THEY'RE ALL WORTH WHILE DOING.
OF COURSE, WE WILL NOT BE ABLE TO DO ALL OF THEM ANYWAY.
>> THE LAST QUESTION THAT I HAD WAS REGARDING PUBLIC SAFETY, BUT I KNOW WE'RE GOING TO BE DISCUSSING THAT FURTHER TOMORROW, I BELIEVE.
YOU ALREADY ALSO GAVE SOME EXPLANATION AS TO SOMETHING YOU HAVE TOLD US BEFORE THAT WE WOULD BE SETTING ASIDE MONEYS.
>> THIS TIES BACK TO THAT MEASURE X STRATEGY AND SOME OF THAT WILL COME DURING THE REMAINDER OF THE WORKSHOPS, AND THEN SOME WE'LL PICK BACK UP AFTER JULY 1ST AND TALK A LITTLE MORE SERIOUSLY ABOUT THE POLICY AS REQUIRED TO DO THAT.
>> THE ONLY THING I DO WANT TO SAY ABOUT THIS, THAT IS A MAJOR PRIORITY FOR US AND WE CAN'T WAIT.
PUBLIC SAFETY IS IN EVERYBODY'S MIND.
IT WAS ON EVERYBODY'S MIND WHEN WE DID OUR GOAL SETTING.
IT WAS AT THE TOP OF EACH BOARD.
>> WE NEED TO MAKE SURE THAT WE ARE MOVING FORWARD WITH THAT IN THAT WEIGHT BECAUSE WAITING CAN BE DETRIMENTAL TO OUR CITY.
I DON'T HAVE ANY COMMENTS OR QUESTIONS.
DOES ANYBODY ELSE HAVE ANY COMMENTS OR QUESTIONS?
>> DOES THAT MEAN WE ARE DONE?
>> I CAN CERTAINLY CIRCLE BACK AND COVER IT AGAIN.
BUT I BELIEVE AT THIS POINT, YES, WE HAVE COVERED THE GENERAL FUND AND THE SPECIAL REVENUE.
BUT JUST TO RECAP, THE GENERAL FUND IS, WE HAVE 68 PERCENT OF OUR UNASSIGNED RESERVES.
IT'S HEALTHY. THAT MEANS WE'RE PHYSICALLY RESPONSIBLE AND WE'RE VERY PRUDENT WITH OUR SPENDING.
TWO, THE WAY THAT WE'RE INVESTING OUR [NOISE] LIQUID CASH AND INTEREST INCOME THAT'S COMING IN, IT'S ALSO A DRIVING FORCE THAT IT'S
[01:30:04]
GEARING TOWARDS THE DISCUSSION THAT THE CITY MANAGER HAD AT THE VERY BEGINNING OF THIS PRESENTATION, WHICH WAS THE PAYING OFF THIS UNFUNDED LIABILITY FOR A PUBLIC SAFETY PLAN THAT WAS BACK IN THE LATE '80S AND IT'S BEEN AN ANCHOR FOR THE CITY EVER SINCE.THERE'S LITTLE THINGS THAT WE'RE DOING TO MOVE IN THAT DIRECTION TOWARDS PUBLIC SAFETY.
WE NEED A GOOD FOUNDATION, AND THAT MEANS CLEAN UP ANY LOOSE ENDS FROM THE PAST AND STARTING FRESH.
>> YEAH. I AGREE WITH YOU AND WITH SCOTT.
I THINK IT'S GREAT THAT YOU'RE DOING THAT.
HE BROUGHT IT TO US NOT TOO LONG AGO AND IT'S CRAZY TO BE PAYING MONEY ON THIS.
I LOOK FORWARD TO THE NEXT ONE.
I DO WANT A HARD COPY OF WHAT YOU EMAILED.
I DON'T KNOW WHO'S GOING TO DO IT.
I THINK EVERYBODY SAID THAT THEY WANTED ONE FOR TOMORROW'S MEETING.
>> I THINK THERE WAS SIX ATTACHMENTS.
>> I DON'T HAVE TO ADD IT RIGHT NOW, BUT IT'S FINE IF YOU CAN PRINT IT OUT, I CAN WAIT [INAUDIBLE] [NOISE]
>> ARE THE COPIES OF THE POWERPOINT THAT YOU RECEIVED TONIGHT, THOSE PAPER COPIES SUFFICIENT?
>> THAT IS FINE. IN FACT, THIS COVERS A LOT OF WHAT'S IN ALL OF THE OTHER PAGES.
IT'S JUST A SIMPLIFIED WAY OF DOING IT.
[NOISE] I ACTUALLY LIKE TO READ ALL THAT STUFF.
[LAUGHTER] I FOUND THAT VERY INTERESTING.
>> JUST AS A REMINDER, WE HAVE A FAIRLY FULL AGENDA FOR OUR REGULAR MEETING TOMORROW NIGHT, BUT WE WILL HAVE A SECTION IN THERE FOR A RECAP.
IF YOU COME UP WITH QUESTIONS THAT YOU HAVE TONIGHT OR TOMORROW DURING THE DAY.
I THINK IF YOU COULD EMAIL THOSE IN TO THE CITY CLERK AND YOU CAN CC ISRAEL AND I, AND WE'LL TRY TO GET THOSE ANSWERED WITHOUT DRAGGING INTO A WHOLE ANOTHER WORKSHOP TOMORROW NIGHT.
BUT I THINK IT'LL BE IMPORTANT FOR ME TO RECAP, MR. GARCIA WILL BE ABLE TO HEAR THE QUESTIONS AND ANSWERS THAT WE HAD TONIGHT.
I'LL GIVE HIM AN OPPORTUNITY TO SUBMIT HIS ADDITIONAL QUESTIONS AS WELL, AND THEN I WILL PRESENT THOSE TOMORROW NIGHT SO EVERYONE HAS AN OPPORTUNITY TO HEAR THOSE.
>> THANK YOU. I APPRECIATE THAT.
THAT'S GREAT. I'M CERTAINLY APPRECIATIVE AS WELL.
WELL, IF THERE ARE NO OTHER QUESTIONS, WE WERE SUPPOSED TO BE HERE UNTIL 9:30, IT'S BARELY 7:00. [LAUGHTER]
>> [OVERLAPPING] SLIGHTLY, GENTLY.
>> THANK YOU EVERYBODY FOR ATTENDING.
THIS MEETING IS ADJOURNED. [NOISE] HOW'S THAT?
>> PERFECT.
* This transcript was compiled from uncorrected Closed Captioning.