Mar 04, 2025 City Council

>> THAT CONCLUDES OUR PRESENTATION.

HOPEFULLY, YOU WILL SEE THE VALUE IN WORLD BIPOLAR DAY AND HOW DOWNTOWN WILL SERVE AS THE PERFECT VENUE FOR THIS EVENT.

THANK YOU VERY MUCH FOR YOUR TIME.

ARE THERE ANY OTHER PUBLIC COMMENTS? ARE THERE ANY COMMENTS FROM THE MEMBERS, MAYOR, PRO TEM?

>> THANK YOU. [APPLAUSE]

>> THANK YOU WITH THAT.

>> I SUPPORT THIS IT'S A GREAT IDEA.

ALL THIS INFORMATION THAT WAS SPILLED ONTO US, IT MEANS A LOT, AND IT'S REALLY IMPORTANT FOR THE WHOLE COMMITTEE.

>> THANK YOU, MA'AM MARTINEZ.

>> FIRST OF ALL, I REALLY RESPECT YOUR GUYS' PASSION FOR THIS.

THAT'S AWESOME TO SEE. IT MOTIVATES ME.

THIS IS A GREAT IDEA. IT'S A GREAT EVENT.

I'M GLAD YOU GUYS ARE TAKING IT BY THE HORNS AND TAKING THIS TASK ON, AND I LOOK FORWARD TO ATTENDING AND IT BEING A BIG SUCCESS.

>> WELL, THIS IS A VERY IMPORTANT EVENT FOR OUR COMMUNITY.

>> MIGUEL RAYA.

WE KNOW THAT AFTER COVID 19, MENTAL ILLNESS JUST WENT OFF THE ROOF.

BELIEVE IT OR NOT, I WAS READING SOME STATISTICS, 44 MILLION PEOPLE GET DIAGNOSED YEARLY WITH SOME MENTAL ILLNESS.

BUT ONLY HALF OF THEM GO TO THE DOCTOR TO GET GET HELP.

[00:40:03]

BECAUSE THERE'S A DISCRIMINATION OR STIGMA ATTACHED TO IT.

IN THIS EVENT HERE, HOPEFULLY, IT'S GOING TO BRING AWARENESS AND EDUCATION TO THE COMMUNITY AND REDUCE THE DISCRIMINATION IN STIGMA BEHIND THE MENTAL HEALTH ISSUE.

GREAT WELL PLANNED ACTIVITIES THROUGHOUT THE DAY.

I WAS LOOKING AT THE REPORT.

YOU GUYS PUT IN A LOT OF WORK, CONGRATULATIONS.

>> THANK YOU. MEMBER REYNA.

I'M SURE YOU HAVE A THING OR TWO.

>> I WON'T TAKE A LOT OF TIME HAVE DONE A GREAT JOB EXPLAINING THE PROJECT.

I DO WANT TO ADD THAT I DID TAKE THE TIME TO VISIT EVERY SINGLE MEMBER OF THE BUSINESS COMMUNITY DOWNTOWN, THE ONES THAT WILL BE AFFECTED BY THIS EVENT AND ALL EXCEPT ONE.

WE'RE VERY INTERESTED IN PARTICIPATING.

THEY'RE GOING TO BE ON THE SIDEWALK, EXCEPT FOR THE ONE THAT WAS COMPLAINING ABOUT THE FACT THAT WE'RE HAVING AN EVENT.

I THINK THAT IT'S A GOOD THING FOR WASCO, AND IT'S GOING TO BE A BEAUTIFUL, BIG EVENT.

IT'S GOING TO BE FUN. I HOPE TO SEE EVERYONE THERE. THAT'S IT.

>> AWESOME.

>> THERE'S DEFINITELY PASSION BEHIND IT.

I THINK IT'S WELL THOUGHT OUT.

I READ THE REPORT, IT'S VERY WELL PUT TOGETHER.

YOU GUYS HAVE BEEN THINKING OF EVERYTHING REALLY.

WHENEVER WE'RE BEING PRESENTED A PROPOSAL IN THE FUTURE, THIS IS WHAT I'M EXPECTING.

SOMETHING THAT'S DETAILED THAT HAS A PLAN, HAS A MAP.

THAT'S NOT JUST AN IDEA.

THIS IS AN IDEA, BUT IT HAS A PLAN WITH AN EXECUTION BEHIND IT.

I THINK IT'S THOUGHT OUT.

I THINK ALL I'M HEARING IS SUPPORT.

I THINK FOR THE FUTURE, RIGHT THIS IS SORT OF SETTING THE STANDARD, IN MY OPINION, SORT OF THE WAY THAT THIS IS PLANNED OUT AND THE DETAIL BEHIND IT AND WHATNOT, THAT WE'RE NOT LEAVING SOMETHING TO CHANCE.

WE OBVIOUSLY HAVE A POLICE DEPARTMENT.

WE HAVE THE RESOURCES, AND WE HAVE THE SPACE.

IN THE FUTURE THIS IS EXACTLY I THINK WHAT THIS AREA WAS MADE FOR, WHERE WE WANT TO BE USING IT TO BRING THE COMMUNITY TOGETHER AND WHAT BETTER WAY TO DO IT WITH SOMETHING LIKE THIS.

WE'RE EDUCATING THE COMMUNITY WHERE THERE'S DEFINITELY A NEED, AND THE PASSION THAT YOU'RE DISPLAYING FOR ART. I LOVE THAT.

YOU WANT PEOPLE THAT ARE PASSIONATE ABOUT IT BECAUSE THEN THAT RUBS OFF.

I MIGHT NOT BE AN ARTIST, BUT MAN, I WANT TO GO TO YOUR CLASS.

[LAUGHTER] I THINK IT'S GREAT.

WITH THAT, I WOULD LIKE TO INTEND A MOTION FOR APPROVAL.

>> MOTION APPROVE.

>> I WILL SECOND. I'M CLEAR.

CAN WE GET THE VOTE BY ROLL CALL.

>> MAYOR MEDINA.

>> COUNCIL MEMBER MARTINEZ.

>> MOTION BY COUNCIL-MEMBER RAYA, SECOND BY MAYOR MEDINA TO APPROVE THE REQUEST FOR CITY SUPPORT ITEMS A THROUGH D IN THE STAFF.

MOTION IS UNANIMOUSLY APPROVED.

>> THANK YOU FOR BEING HERE. MOVING ON TO ITEM NUMBER 14, NEW BUSINESS;

[14.a. Council finds this action not a “project” per Section 15378 of the CEQA Guidelines; Adopt a Resolution Authorizing the City Manager or Designee to Finalize and Execute a Professional Services Agreement with Phoenix Information Systems Group for the collection and processing of City of Wasco parking citations with an annual fee of $5,940.00 subject to the City Manager and City Attorney Review. (Hurlbert]

148, COUNCIL FIND THIS ACTION OUT OF PROJECT FOR SECTION 15378 OF THE SCO GUIDELINES.

ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER OR DESIGNATE TO FINALIZE AND EXECUTE A PROFESSIONAL SERVICE AGREEMENT WITH PHOENIX INFORMATION SYSTEMS GROUP FOR THE COLLECTION AND PROCESSING OF THE CITY OF WASCO PARKING CITATIONS WITH AN ANNUAL FEE OF $5,940, SUBJECT TO THE CITY MANAGER AND CITY ATTORNEY REVIEW. MR. HARBERT.

>> YES, HONORABLE MAYOR AND MEMBERS OF THE COUNCIL.

PHOENIX INFORMATION SYSTEMS IS THE COMPANY THAT PREVIOUSLY HAD HANDLED THE PARKING TICKET FUNCTIONS HERE UNDER THE SHERIFF'S DEPARTMENT.

THAT AGREEMENT LAPSED WITH THE EXIT OF THE SHERIFF'S DEPARTMENT, AND WE'RE LOOKING TO CONTINUE ON.

WE STAFF AT THE PD DID RESEARCH ON THE VARIOUS OPTIONS AVAILABLE.

PHOENIX STILL PROVIDES THE MOST EFFICIENT AND COST EFFECTIVE SOLUTION TO THIS ISSUE.

WE DON'T DO ENOUGH TRAFFIC TICKET BUSINESS TO JUSTIFY BRINGING IT IN HOUSE.

YES, THEY CHARGE A FEE FOR THEIR SERVICE, BUT IT ALLOWS US TO DO OTHER MORE EFFECTIVE WORK WITH OUR MANPOWER AND STAFF RECOMMENDS APPROVAL AND HAPPY TO ANSWER ANY QUESTIONS, KNOWING THAT I HAVE LIEUTENANT MORA AS A BACKUP.

>> THANK YOU, SCOTT. ARE THERE ANY PUBLIC COMMENTS? SAYING NONE. ANY COMMENTS FROM THE MEMBERS, MAYOR PRO TEMP.

[00:45:01]

>> I HAVE NO COMMENT.

>> I HAD ASKED THE QUESTIONS THAT I HAD PREVIOUSLY, SO I DON'T HAVE QUESTIONS. THANK YOU.

>> I DON'T REALLY HAVE ANYTHING TO ADD. I THINK THAT'S A SMART MOVE.

WE DON'T HAVE THE FLOW OR THE NEED FOR IT.

THAT MAKES THE MOST SENSE, WITH THAT, I WOULD LIKE TO TAIN A MOTION FOR APPROVAL.

>> MOVED.

>> I'LL SECOND, MADAM CLERK READ THE ROLL CALL.

>> COUNCIL MEMBER MARTINEZ.

>> MOTION BY COUNCIL MEMBER MARTINEZ, SECONDED BY MAYOR MEDINA TO ADOPT THE RESOLUTION.

MOTION IS UNANIMOUSLY APPROVED.

>> THANK YOU. MOVING ON TO ITEM 14B.

[14.b. Council finds this action not a “project” per Section 15378 of the CEQA Guidelines; Adopt a Resolution approving the mid-year operating budget adjustments totaling $109,448. (Perez Hernandez) ]

COUNCIL FINDS THIS ACTION NOT A PROJECT FOR SECTION 15378 OF THE SQL GUIDELINES, ADOPT THE RESOLUTION APPROVING THE MID YEAR OPERATING BUDGET ADJUSTMENTS TOTALING $109,448.

MR. BEZDEZ.

THAT ISSUE.

>> GIVING MYSELF A 30 MINUTE STOP WATCH.

>> HE IS JOKING.

>> FORTY FIVE MINUTES.

>> FORTY FIVE WILL DO THIS.

>> GOOD EVENING, HONORABLE MAYOR, MEMBERS OF THE CITY COUNCIL.

THIS EVENING WE'LL BE TAKING A HIGH LEVEL OVERVIEW OF OUR BUDGET STATUS, ADJUSTMENTS, AND PROJECTIONS TO MAKE SURE THAT WE ARE IN TUNE WITH OUR BUDGET AND WE DON'T FALL OFF THE RAILS FORECASTING.

>> THERE YOU GO.

>> THIS EVENING, WE ATTEMPT TO ANSWER THREE QUESTIONS THROUGHOUT THE PRESENTATION.

ONE WILL BE WHERE ARE WE AT NOW, WHERE WE HEADED, AND WHERE ARE WE LONG TERM? THOSE ARE THE THREE QUESTIONS THAT I WILL ATTEMPT TO ANSWER THROUGHOUT THE PRESENTATION.

HERE'S A VISUAL REPRESENTATION OF OUR MILESTONES.

SOME WE'VE ACHIEVED.

OTHERS WE'RE JUST ENTERING ON FEBRUARY 13TH.

WE HAVE OUR STRATEGIC PLANNING WORKSHOP HERE IN THE COUNCIL CHAMBERS, AND WE'RE JUST MAKING THIS RIGHT TURN WHERE WE ARE WITH OUR MID YEAR BUDGET.

WE ARE ANTICIPATING PRESENTING TO THE COUNCIL OUR FINANCIAL STATEMENTS ON MARCH 18 AND FOLLOWING THE COMPLETION OF THE FINANCIAL STATEMENTS, BRINGING TO THE COUNCIL OUR BUDGET WORKSHOPS FOR THE GENERAL FUND, AS WELL AS THE ENTERPRISE FUNDS, WHICH WE'LL ATTEMPT TO ADDRESS THE GOALS AND THE DISCUSSIONS THAT WE HAD DURING THE STRATEGIC BUDGET WORKSHOP, WHICH WE'LL BE FOCUSING ON.

HOPEFULLY JUNE, WE ADOPT A OPERATING BUDGET AS WELL AS A CAPITAL IMPROVEMENT PROGRAM BUDGET FOR THE CITY.

LET'S GET STARTED WITH SOME GOOD NEWS.

THE CITY GENERAL FUND IS IN A GOOD FOOTING.

WE HAVE A POLICY WHERE OUR GENERAL FUND SHOULD HAVE A MINIMUM OF 35% OF OUR RESERVES, WE WILL SEE IN THE NEXT SLIDE, THAT WE ARE WELL OVER THAT.

BUT THERE IS ONE THING I DO WANT TO BRING TO THE COUNCIL'S ATTENTION, WHICH WAS ALSO DISCUSSED DURING THE STRATEGIC BUDGET WORKSHOP, WHICH IS THAT HDL, OUR SALES TAX CONSULTANT INFORMED US OF A ADJUSTMENT TO THE FORECAST FOR SALES TAX.

THEY ARE PROJECTING OUR SALES TAX TO COME IN FLAT AT BEST AND WITH THAT, WE TOOK THAT RECOMMENDATION AND INCORPORATED INTO OUR FORECAST FOR REVISED PROPOSED BUDGET THAT WE'RE PRESENTING TO THE COUNCIL.

HERE WE HAVE OUR OVERVIEW OF OUR GENERAL FUND.

WE CAN SEE COLUMN A IS COUNCIL ADOPTED BACK IN JUNE OF 2024, COLUMN B IS OUR PROJECTED BUDGET, THAT PROJECTED BUDGET CARRIES THE VARIANCES.

THOSE VARIANCES ARE INCREASES OR DECREASES ACROSS SEVERAL DEPARTMENTS IN THE GENERAL FUND.

WE WILL COVER THESE REQUESTS AND THE FOLLOWING SLIDES.

[00:50:02]

BUT AS WE CAN SEE, THE NET IMPACT REVENUE INCREASES AS WELL AS OPERATING EXPENSES.

THE NET DIFFERENCE IS 109,000 THAT WE ARE REQUESTING TO INCREASE THE BUDGET ON THE EXPENDITURE SIDE, WHICH WILL COVER SHORTLY.

THIS SLIDE HERE IS THE BACKBONE OF THE GENERAL FUND.

THESE ARE THE TOP 7 REVENUE GENERATORS FOR THE CITY.

WE CAN SEE HERE WE HAVE PROPERTY TAXES IN LIEU OF MOTOR VEHICLES.

WE HAVE OUR MEASURE X, WE HAVE OUR REGULAR SALES TAX, WE HAVE OUR PROPERTY TAXES.

WE HAVE FRANCHISE TAX AS WELL AS OUR OCCUPANCY TAX.

>> IN THE FAR RIGHT COLUMN, AS WE CAN SEE, WE ARE TRENDING ON A POSITIVE FOOTING.

THE THE ONLY TWEAK THAT WE'RE RECOMMENDING IS THE RECOMMENDATION FOR HTL FOR OUR SALES TAX.

ONE THING THAT I DO WANT TO HIGHLIGHT IS IN 2023, 2024, THAT'S LEVER, IT IS THAT YELLOW COLOR.

THAT IS GOING TO PLAY INTO THE NEXT SLIDE.

I JUST WANT TO MAKE SURE YOU GUYS CAN KEEP AN EYE ON THAT BECAUSE THAT IS OUR INTEREST EARNED.

WHAT IS THE INTEREST THAT THE CITY EARNED? NOW, HISTORICALLY, THE CITY HAS TAKEN A CONSERVATIVE APPROACH WHEN IT COMES TO INTEREST.

WE DON'T WANT TO OVER BUDGET AND COME BACK TO THE COUNCIL.

WE OVERBUDGET IT, WE DON'T ANTICIPATE THOSE REVENUES COMING IN FROM OUR INVESTMENTS.

THAT IS WHY WE SEE FROM THE 23/2024 TO THE 24/25 PROJECTION, THERE IS THAT REDUCTION OF ABOUT CLOSE TO $4 MILLION.

THAT IS PRIMARILY THE INTEREST PORTION OF IT.

RATHER TAKING A CONSERVATIVE APPROACH AND COME BACK TO THE COUNCIL, AND WE ACTUALLY GENERATED AN EXCESS OF WHAT WE BUDGETED ORIGINALLY, WHICH ENSURES THAT WE ARE IN LINE AND THAT WE ARE SPENDING WITHIN OUR MEANS.

WE DON'T WANT TO BE RELYING ON THESE REVENUES THAT CAN FLUCTUATE DEPENDING ON HOW THE MARKETS ARE DOING, AND AS WE KNOW, TARIFFS ARE IMPACTING INFLATION, AND AS THESE CHANGES ARE TAKING PLACE, THE RATES WHEN WE'RE MAKING THESE INVESTMENTS DO FLUCTUATE AS WELL.

THAT IS ONE THING THAT I DO.

I'M EMPHASIZING A LITTLE TOO MUCH, BUT I JUST WANT TO MAKE SURE THE IMPORTANCE OF US TAKING A CONSERVATIVE APPROACH WHEN IT COMES.

>> I HAVE A QUESTION REGARDS THAT.

I WANT TO MAKE SURE I UNDERSTANDING CORRECTLY.

IN 23/24, DID WE TAKE A MORE AGGRESSIVE APPROACH OR IT IS JUST THE INTEREST HAS CHANGED?

>> NO. WHAT HAPPENED IN 22/2023, THE CITY TOOK AN INVESTMENT APPROACH WHERE WE LADDERED OUR INVESTMENTS.

SOME ORGANIZATIONS, SOME AGENCY DECIDES TO PUT ALL OF THEIR MONEY AND THE STATES LEIF, THAT'S THEIR STATE SAVINGS ACCOUNTS.

THE CITY TOOK A DIFFERENT APPROACH.

WE LADDERED OUR INVESTMENT IN CORPORATE BONDS, CDS, TREASURIES, AND WE LADDERED THEM.

WE ACTUALLY CAME TO THE COUNCIL AND WE REQUESTED YOUR SUPPORT TO PARTICIPATE AND CALIFORNIA CLASS, WHICH IS ALSO AN INVESTMENT TOOL, AND WE RECEIVED SUPPORT FROM THE COUNCIL.

THAT SUPPORT IS NOW WE'RE REAPING THOSE BENEFITS.

HOPEFULLY THAT ANSWERS YOUR QUESTION.

>> I DON'T KNOW THAT IT DOES.

I GUESS I'M NOT FULLY UNDERSTANDING RIGHT.

IT'S THE REASON THAT THE INTEREST EARNED ON THE 24/25, JUST BECAUSE WE HAVEN'T GONE THROUGH THE FULL YEAR, IS THAT WHY? I GUESS THE QUESTION IS, ARE WE GOING TO SEE THAT INCREASE OR IS THAT JUST GOING TO STAY WHERE IN THAT GRAPH?

>> NO. RIGHT NOW WHERE IT IS, THAT'S WHAT WE RECEIVED UP TO DECEMBER 31.

ONCE WE REACH THE END OF JUNE, ALL THOSE BARS ARE GOING TO CONTINUE TO GROW.

RIGHT NOW, THIS IS ONLY AN OUTLOOK FROM JULY 1ST TO DECEMBER 31ST.

>> WE CAN ESSENTIALLY EXPECT IT TO GROW?

>> ABSOLUTELY.

>> IF I COULD, THE QUESTION ABOUT THE INTEREST, A COUPLE OF THINGS AFFECTED THAT.

NOT ONLY THE BETTER INVESTMENT STRATEGY BY LADDERING AND USING THESE BETTER YIELDING INVESTMENTS.

BUT ALSO IF YOU RECALL THE AGREEMENTS THAT WE REACHED WITH HIGH SPEED RAIL, THOSE FUNDS HAVE BEEN PUT AWAY INTO INTEREST BEARING MECHANISMS ALSO, TOOLS.

[00:55:02]

THEN, ALSO THE EARMARK THAT WE RECEIVED TOWARD THE POLICE DEPARTMENT FACILITY PROJECT.

>> THAT'S A GROWING INTEREST AS WELL.

>> THOSE ARE GROWING INTEREST AS WELL, AND THEY'RE BEING INVESTED IN THESE MORE AGGRESSIVE TOOLS.

STILL WELL WITHIN OUR GUIDELINES.

AS MR. PEREZ POINTED OUT, THIS IS SOMETHING THAT WAS BROUGHT TO COUNSEL AND DISCUSSED.

PARTICULAR THIS NEW CLASS PRODUCT, C-L-A-S-S, IS SOMETHING THAT'S BEEN ADOPTED STATEWIDE NOW FOR A FEW YEARS, AND IT PROVIDES BETTER RETURNS BY A SIGNIFICANT AMOUNT COMPARED TO THE OTHER DEFAULT INVESTMENTS THAT WE'VE DONE IN THE PAST.

>> AS YOU SWITCH TO THE NEXT SLIDE, I'M STILL NOT UNDERSTANDING.

I UNDERSTAND THIS EARNING OF INTEREST FROM OUR INVESTMENTS ON THAT YELLOW PORTION OF THOSE BARS.

I THINK THAT THAT'S REALLY GOOD, AND IT HAS PERFORMED I GUESS, BEYOND EXPECTATIONS.

IT'S DOING REALLY WELL.

BUT WHEN I LOOK AT THIS CHART, WHAT DOES A RED MEAN? BECAUSE IN THE PREVIOUS ONE, THAT WAS PROPERTY TAXES IN LIEU OF VEHICLE LICENSE FEES.

WHAT ARE WE LOOKING AT HERE? WHY IS THE BAR TO THE EXTREME RIGHT GRAY AND DOES NOT SHOW ANY RED. CAN YOU EXPLAIN THAT?

>> ABSOLUTELY. THE RED BAR INDICATES THE $9.3 MILLION DOLLAR THAT THE CITY SET ASIDE FOR THE DEMOLITION OF THE OLD LABOR CAMP.

THE 24/25 PROJECTION DOESN'T HAVE THE 9.3 MILLION AS WE ARE REACHING THE LAST STAGES OF THE REIMBURSEMENTS FROM HIGH SPEED RAIL.

THAT IS WHY FROM 2020, 2021 TO 2023, 2024, THERE WAS THOSE $9.3 MILLION THAT THE COUNCIL APPROVED TO SET ASIDE FOR THE DEMOLITION IN THE EVENT THAT WE WOULD NOT RECEIVE SOME TYPE OF AGREEMENT WITH THE HIGH SPEED RAIL FOR THE DEMOLITION OF THE OLD LABOR CAMP.

>> HIGH SPEED RAIL DID GIVE US?

>> YES. THEY THEY REIMBURSED US THE FULL COST OF THE DEMOLITION AND CLEARING SO THAT LIABILITY HAS BEEN RETIRED OFF OF THE CITY'S BOOKS.

>> WAS IT 9.1 MILLION THAT WE HAD SET ASIDE AT ONE POINT, HAS IT GONE BACK NOW?

>> TO THE UNASSIGNED POOL, THAT'S WHY IT'S ALL GRAY, CORRECT.

>> THANK YOU. THAT MAKES ME UNDERSTAND THE GRAPH. THANK YOU.

>> GREAT QUESTION.

>> HERE IS THE 109,000 THAT WE DISCUSSED EARLIER.

WHAT IS COMPOSED OF THE 109,000, SO THERE'S A DECREASE AND SALES TAX OF 100,000.

WE HAVE OCCUPANCY TAX OF 10,000.

THAT'S JUST MORE IN LINE AS WE'RE SEEING THE COMPLETION OF THE HIGH SPEED RAIL AND IN THE LODGING AND REVIEWING HISTORICAL OCCUPANCY REVENUES COMING IN AND IT LOOKS LIKE WE MIGHT HAVE OVER BUDGETED BY ABOUT 10,000 BY THE TIME WE REACHED THE END OF THE FISCAL YEAR FOR THE OCCUPANCY TAX.

FOR THE ANIMAL SHELTER, A DECREASE OF 5,000, AND THAT IS PRIMARILY DRIVEN BY OUR PUBLIC WORKS DIRECTOR AND OUR ASSISTANT CITY MANAGER.

THE GRANT WHERE WE HAVE THE FREE PET ADOPTIONS AND THE SPADE AND NEUTERING.

ALL THESE COSTS ARE BEING SUBSIDIZED BY A GRANT.

INITIALLY, WHEN THE BUDGET WAS PUT TOGETHER, WE BUDGETED 15,000.

WELL, I DON'T THINK WE'LL BE SPENDING THAT THE ENTIRE 15,000.

IT'S UNREASONABLE FOR THE CITY TO KEEP THE FULL 15,000 WHEN WE KNOW WE MIGHT NOT REACH THAT MARK.

IT GIVES US A LITTLE BETTER GAUGE OF WHAT OUR END YEAR BALANCE MIGHT LOOK LIKE BY THE END OF JUNE 30TH. MOVING ALONG.

>> I WANT SOME CLARITY ON THIS.

BECAUSE YOU'RE TALKING ABOUT ANIMAL CONTROL.

WE DID GET AND I DON'T REMEMBER THE EXACT NUMBER, IT WAS AT $280,000 FROM THE K SCHOOL OF MEDICINE.

THEN, WE GOT AN ADDITIONAL GRANT THAT WAS OVER $100,000.

>> THAT WAS FOR SHELF FOR [INAUDIBLE]

>> ALL THIS MONEY, WHAT YOU'RE SAYING IS NOT BEING SPENT AT THE RATE THAT WE ARE EXPECTED TO SPEND?

>> NO. THESE ARE DECREASES IN A DIFFERENCE BETWEEN

[01:00:01]

THE PROJECTED BUDGETED REVENUE AMOUNT AND WHAT ACTUALLY CAME IN.

THE BETTER PROJECTION NOW THAT WE'RE HALFWAY THROUGH THE YEAR.

>> THESE ARE JUST ADJUSTMENTS?

>> THIS ARE JUST ADJUSTMENTS.

>> YES. NET OF ALL REVENUES, SOME WENT UP, SOME WENT DOWN.

THE ONES IN PARENTHESES WERE DECREASES VERSES BUDGET PROJECTION, AND THE ONES THAT ARE POSITIVE WERE INCREASES.

A GRANT THAT MAYBE WE DIDN'T KNOW WE WERE GOING TO GET.

>> I DON'T WANT TO GET AHEAD OF OF YOUR PRESENTATION HERE, BUT I DID READ THE REPORT AND I BELIEVE THIS 109,448 IS THE AMOUNT THAT YOU WANT US TO APPROVE, IS THAT?

>> CORRECT. THAT'S THE NET ADJUSTMENT.

>> WHICH IS AN INCREASE OVER WHAT WAS BUDGETED OVERALL.

>> IT'S AN ADDITIONAL APPROPRIATION TOWARD THE ALREADY ADOPTED BUDGET, CORRECT.

>> THANK YOU. THIS HELPS ME UNDERSTAND WHAT WE'RE TALKING.

>> THAT'S GREAT. GREAT QUESTIONS.

MOVING ALONG, WE ALSO HAVE, AS OUR CITY MANAGER MENTIONED FOR A GRANT REVENUE, 145,000.

MOVING TO CODE ENFORCEMENT, WE HAVE BODY WORN CAMERAS, I BELIEVE IT'S TWO OF THEM.

THE REMAINDER IS FOR THE PUBLIC POLICE DEPARTMENT UNDER PROFESSIONAL SERVICES, AND THAT'S 20,000, AND THAT'S FOR BACKGROUND AND PROFESSIONAL SERVICES PROVIDED TO THE POLICE DEPARTMENT.

SOME OVERTIME, WE'RE WORKING WITH THE COUNTY WITH SOME REIMBURSEMENTS.

IT IS TO ENSURE THAT WE ARE GOING TO RECEIVE THE FUNDING, WE NEED TO HAVE A BUDGETED AMOUNT OF THOSE $40,000 CUSHION.

BUT AS SOON AS WE RECEIVE THE REIMBURSEMENTS FROM THE COUNTY, AGAIN, IT'LL BE A NEUTRAL IT WILL BE A WASH.

THE SUPPORT SERVICE THAT OUR OFFICERS PROVIDE OTHER JURISDICTIONS.

THE COUNTY REIMBURSES US FOR THOSE AMOUNTS.

LASTLY, FOR FUEL, IT'S OUR FIRST YEAR OPERATING OUR POLICE DEPARTMENT, AND WITH THE ACTIVITY THAT'S BEEN HAPPENING FOR THE PAST SIX MONTHS, WE ANTICIPATE THAT WE'LL BE UTILIZING ADDITIONAL 67,000 IN FUEL FOR OUR POLICE DEPARTMENT, WHICH RESULTS IN A NET INCREASE TO OUR BUDGET OF 109,000.

THIS IS WHAT MAKES UP THE 109,000 THAT WAS DISCUSSED A LITTLE EARLIER.

I'M MOVING ON TO THE WASTEWATER FUND.

HERE ON THE WASTEWATER FUND, THERE WAS NO REQUEST, NO CHANGES, AND THIS IS GOING TO BE A RECURRING THEME THROUGH WASTEWATER AND SANITATION AS OUR DEPUTY PUBLIC WORKS DIRECTOR CONSTANTLY IS REVIEWING HIS DEPARTMENT BUDGETS, ENSURING THAT IF WE ARE GOING TO BE MAKING A PURCHASE THAT WE HAVE SUFFICIENT REVENUES AND EXPENSES TO COVER THOSE COSTS.

WHICH IS WHY HERE, OUR ADOPTED BUDGET BACK IN JUNE, THERE IS NO PROPOSED UPDATE OR CHANGES TO THE WASTEWATER FUND.

NOW, IF THAT TAKES CARE OF THE VERY FIRST PORTION, AGAIN, WE DO HAVE A RESERVES POLICY FOR THE ENTERPRISE FUNDS, AND THAT'S 35% OF OUR OPERATING COSTS.

WE ARE AT 156%.

WE CAN MEET OUR OPERATING COSTS FOR ROUGHLY THREE MONTHS, WHICH IS THE STANDARD.

>> WELL, ACTUALLY, 156% WOULD BE 18 MONTHS.

>> YES. THE 35%, I WAS REFERRING TO THE 35%, BUT YES.

>> IN A MUCH BETTER POSITION.

>> YES, WE ARE WE'RE IN A GREAT POSITION.

>> I TAKE THAT ANY DAY.

>> DEFINITELY. THE SECOND IMAGE BELOW IS JUST AT THE HALFWAY MARK.

HOW ARE WE DOING WITH OUR YEAR TO DATE REVENUES AND OPERATING COSTS, WHAT WE BUDGETED AND THE PERCENTAGE DIFFERENCE.

WE CAN SEE THAT IT'S SLIGHTLY BELOW 50%, AND THAT'S UNDERSTANDABLE.

THAT OCCURS YEAR OVER YEAR.

IT'S TYPICALLY BECAUSE THE MONTH OF NOVEMBER AND DECEMBER, FAMILIES TRAVEL OUT OF TOWN AND WE SEE A SPIKE IN THE JANUARY, FEBRUARY REVENUES COMING IN WHERE CUSTOMERS MAKE THEIR PAYMENTS FOR THE DECEMBER SO THEY DON'T GET CAPTURED WHEN WE PULL THE DATA.

BUT I JUST WANT TO BRING THAT AND ALSO IT WAS REFERENCED IN THE STAFF REPORT AS WELL.

HERE IS JUST A VISUAL OF OUR RESERVES, WHICH IS WHAT WAS MENTIONED IN THE PRIOR SLIDE OF THE, WHAT WAS IT?

[01:05:02]

WATER FUND. NO DIFFERENT THAN OUR GENERAL FUND.

WE CONTINUE TO HAVE GRADUAL INCREASE IN OUR WASTEWATER RESERVES.

THE RED BAR INDICATES MONEY THAT COULD ONLY BE USED FOR ONE SPECIFIC PURPOSE, AND THOSE ARE THE IMPACT FEES.

IMPACT FEES CANNOT BE FOR MAINTENANCE.

THEY HAVE TO BE USED FOR EXPANSION.

EVEN THOUGH WE HAVE THE SAVINGS, A SLIVER OF THAT TOTAL AMOUNT IS RESERVED FOR EXPANSION PURPOSES.

THAT'S WHAT THE RED BAR IS.

MOVING ON TO THE WATER FUND.

ON THE WATER FUND AGAIN, OUR RESERVE POLICY IS 35%, AND WE CURRENTLY ARE PROJECTING TO END THE FISCAL YEAR AT 311%.

THAT IS A VERY HEALTHY WATER FUND.

BUT LET'S BE MINDFUL, JUST BECAUSE WE HAVE A RESERVE IN THE WATER FUND, ALL IT WOULD TAKE IS FOR ONE WELL TO GO DOWN.

IT'S GOING TO COST US OVER $5,000,000 JUST TO HAVE AN OPERATING WELL.

EVEN THOUGH WE HAVE THE SAFETY NET CUSHION, IT'S SOMETHING THAT WE NEED TO BE MINDFUL OF.

AGAIN, SAME THING OCCURRING IN THE WATER FUND, REVENUES AND OPERATING EXPENSES.

SIMILAR THEME, WE DO HAVE THE RED BARS.

THOSE ARE PRIMARILY IMPACT FEES FOR WATER EXPANSION AND THE GRAY BARS ARE UNASSIGNED THAT CAN BE USED FOR OPERATING AND MAINTENANCE AND PERSONNEL COSTS.

>> I DO HAVE A QUESTION ABOUT THIS BECAUSE OF ALL THE FUNDS WE'RE REVIEWING, THIS IS THE ONLY ONE THAT SHOWS THAT DEFICIT.

I WANTED TO ASK, DO WE KNOW WHAT THE REASON IS FOR THAT DEFICIT? I KNOW THAT WE DID A BUY DOWN TO REDUCE THE RATES FOR OUR RESIDENTS.

BUT THERE COULD BE OTHER FACTORS TOO.

THERE COULD BE PEOPLE ARE NOT SPENDING OR USING AS MUCH WATER AS THEY USED BEFORE.

I WANT TO KNOW WHAT IT IS?

>> IS THE QUESTION REALLY ABOUT A DEFICIT, OR IS IT THE REDUCTION IN THE RESERVES?

>> THEY ARE SLIGHTLY DIFFERENT THINGS.

YES, COUNCIL DID AUTHORIZE A BUYDOWN IN THE RATE INCREASES, AND THAT IS RESPONSIBLE FOR PART OF THE INCREASED EXPENSES AND REDUCED REVENUES.

ALSO, IF YOU RECALL, NOW IT WOULDN'T AFFECT THESE NUMBERS, THIS IS THROUGH THE END OF THE YEAR, BUT WE'LL SEE MORE OF THIS AS WE USE THE RESERVES, FOR EXAMPLE, TO BUILD THE WATER TANK.

THOSE WERE RESERVES THAT ARE AMOUNTS THAT WE THOUGHT WERE COMING FROM THE REVOLVING FUND GRANT THAT WERE CANCELED BY THE STATE AND NOW ARE OUR RESPONSIBILITY TO CARRY FORWARD.

>> WHICH WE HAVE ALREADY ALLOCATED MONEY FOR?

>> RIGHT.

>> GO AHEAD.

>> SO THE REDUCTION IN THE BALANCE, PART OF THAT WAS PLANNED, THE DROP FROM 158-149.

IF THAT'S WHAT YOU'RE TALKING ABOUT.

IF WE GO BACK TO THE PREVIOUS SLIDE, ARE WE LOOKING AT?

>> I'M LOOKING AT THAT DEFICIT OF 150,176.

>> OH, REVENUES VERSUS OPERATING EXPENSES.

SO I THINK IT'S A SIMILAR ANSWER.

PART OF THAT IS TIMING ON REVENUE RECEIPTS VERSUS EXPENSES AND THE TIMING DURING THE COURSE OF THE YEAR, PART OF IT IS THAT WE DID SPEND AT A CERTAIN OPERATING COST WITH PLANNED REVENUES COMING IN BELOW THAT BECAUSE OF THE SUBSIDY.

>> OKAY. AND THERE'S A FURTHER REASON FOR MY QUESTION.

WHEN WE APPROVE THESE WATER RATES, WE ALSO PUT A CLAUSE THAT WILL ALLOW US TO RAISE RATES IF CONSUMPTION OF WATER DECREASE.

BECAUSE WE HAD A CERTAIN EXPECTATION THAT PEOPLE WILL CONTINUE TO USE [OVERLAPPING].

>> ON THE NEXT RATE STUDY IN 218 PROCESS, YES.

WE NO DOUBT WILL READDRESS THAT.

BUT DURING THE CURRENTLY ADOPTED RATE SCHEDULE, WE CANNOT MAKE ADJUSTMENTS FOR ANY REASON.

WE WOULD HAVE TO GO BACK THROUGH THE 218 PROCESS.

>> I APPRECIATE THAT CLARIFICATION BECAUSE I AM CONCERNED THAT IF WE SEE A DEFICIT IN THE FUND THAT WE MAY WANT, AT THAT POINT, TO GO AND ASK OUR RESIDENTS FOR ADDITIONAL FUNDING THROUGH AN INCREASE IN RATE.

BUT THAT WILL NOT OCCUR DURING THIS CYCLE.

[01:10:02]

>> NOT BASED ON THE RESULTS SO FAR, WE'RE ON PLAN WITH THAT RATE.

>> RATE STABILIZATION.

>> ARE WE ON THE FIFTH YEAR OF THAT?

>> WE'RE ON THE FOURTH, WE'RE JUST STARTING FOURTH YEAR, CORRECT?

>> YES.

>> AND THIS WAS PART OF THE JUSTIFICATION FOR THE SOFTWARE THAT WE PURCHASED A COUPLE OF MONTHS AGO, THE WATERWORTH PRODUCT.

WE CAN NOW REAL-TIME, AND WE'RE JUST GETTING TO THE POINT WHERE THE DATA IN THAT SYSTEM IS SUFFICIENT FOR US TO START TO MODEL REAL-TIME.

WHAT HAPPENS IF THE RATES DO THIS, WHAT HAPPENS IF THE COSTS DO THIS, WHAT HAPPENS IF WE BRING A CAPITAL PROJECT SOONER THAN LATER, WHAT HAPPENS TO OUR RESERVES OUT INTO THE FUTURE? WE'RE STARTING TO SEE HOW THAT TOOL IS GOING TO HELP US.

WE ARE WELL AHEAD OF THE NEXT 218 PROCESS.

>> GREAT. YOU'LL BE ABLE TO PROVIDE MORE DETAILED DATA TO US TO ANALYZE.

>> PROBABLY MORE THAN YOU'RE GOING TO WANT.

[LAUGHTER].

>> I WOULDN'T BE TOO SURE ABOUT THAT.

[LAUGHTER] THANK YOU. I APPRECIATE THE INFORMATION.

>> NOW, MOVING ON TO THE SANITATION FUND.

HERE ON THE SANITATION FUND AND SAME THEME, THERE THERE WAS NO REQUEST FROM THE PUBLIC WORKS DEPARTMENT.

THIS WAS A FUND THAT THE CONSULTANTS BROUGHT TO OUR ATTENTION THAT WE NEEDED TO REVIEW THE RATES BECAUSE WE WERE GOING IN A DOWNWARD SPIRAL.

AS WE CAN SEE, AGAIN, OUR POLICY IS TO HAVE 35% SET ASIDE TO KEEP UP WITH OPERATIONS IF NO NEW REVENUES WERE TO COME IN.

WE ARE PROJECTING TO END THE YEAR WITH 100%.

THAT IS VERY, VERY WELL.

AS OUR PUBLIC WORKS DIRECTOR DISCUSSED DURING THE STRATEGIC BUDGET WORKSHOP, THE NUMEROUS APPROACHES THAT THEY'VE BEEN TAKING TO REVIEW THE ROUTES TO BE MORE EFFICIENT, THOSE FUEL COSTS, STAFFING TIME, WEAR AND TEAR ON THE VEHICLES, THE TRUCKS, ALL THAT PLAYS INTO WHAT THE FUND ACTUALLY SPENDS.

I JUST WANT TO BRING IT TO THE COUNCIL.

>> I REMEMBER THAT VIVIDLY, AND I CONGRATULATED OUR PUBLIC WORKS DIRECTOR IN THE PAST, AND I WANT TO EXTEND THAT CONGRATULATIONS AGAIN.

GREAT JOB. THE NUMBERS SHOW IT.

>> ABSOLUTELY.

>> THE SECOND IMAGE BELOW.

AGAIN, JUST AN OVERVIEW OR YEAR-TO-DATE.

THE ONLY DIFFERENCE HERE IS IN THE PREVIOUS SCREENS, I WOULD ONLY SHOW ONE CHART, AND HERE WHAT THE DIFFERENCE IS BETWEEN THE LEFT AND THE RIGHT CHART.

WHY THAT SIGNIFICANT DROP? WE KNOW THAT THE CITY HAS A VERY AGGRESSIVE CIP LIST OF PROJECTS THAT WE HAVE.

NOW, ON THE LEFT-HAND SIDE, IS IF THE CITY WAS TO SPEND $1.7 MILLION IN PROJECTS, WHICH ENCOMPASSES $1 MILLION TOWARDS A NEW PUBLIC WORK CHART THAT WE WOULD NEED TO BE BUILDING AND BE DONE BY JUNE 30TH, THE SANITATION FUND WOULD BE CONTRIBUTING $1 MILLION, AND THE OTHER 700,000 IS THE PURCHASE OF THE SANITATION TRUCKS, WHICH I BELIEVE THEY ARE STILL GETTING BUILT.

THEY'RE ON THEIR WAY.

BUT WE HAVEN'T PAID FOR THOSE. [LAUGHTER]

>> THEY'RE SLOWLY COMING.

>> THEY'RE SLOWLY ON THEIR WAY.

BUT HERE ARE THE TWO SCENARIOS.

ON THE LEFT, WHAT ARE THE SANITATION FUND RESERVES IF WE WERE TO SPEND THE $1.7 MILLION? THE RIGHT IS IF THE CITY DOES NOT COMPLETE THOSE PROJECTS, HOW WOULD THE RESERVES LOOK LIKE? I JUST WANTED TO SEE A COMPARISON BECAUSE IT IS A DRASTIC REDUCTION IN OUR RESERVES.

>> BUT IT'S STILL A VERY HEALTHY RESERVE.

>> ABSOLUTELY. YES, IT IS.

>> EITHER WAY.

>> LASTLY, THERE ARE FOUR KEY TAKEAWAYS: ONE OF THOSE STRONG FISCAL POSITION.

AS MENTIONED AT THE BEGINNING OF THIS PRESENTATION, THE GENERAL FUND IS SITTING ON $29 MILLION, WHICH IS ROUGHLY ABOUT 189%, COMPARED TO THE 35% RESERVE POLICY THAT WE HAVE, WHICH IS VERY HEALTHY.

OUR ECONOMIC RISKS.

WE RECOGNIZE THAT INFLATION, STAGGERING SALES TAX, GROWTH,

[01:15:02]

RISING AND STATE AND MANDATES REQUIRES CONDITIONS CONTINUED FINANCIAL OVERSIGHT, THAT WE MUST CONTINUE FINANCIAL DISCIPLINE, AVOIDING ONE-TIME FUNDS FOR ONGOING EXPENSES, CRITICAL PREVENTING FOR STRUCTURAL DEFICITS.

AGAIN, THIS IS THE CITY INVESTING IN PROJECTS THAT ARE ONGOING, KNOWING THAT WE'RE GOING TO USE ONE-TIME DOLLARS.

THOSE TYPICALLY RESULT IN BUDGET CUTS, BUDGET DEFICITS BECAUSE WE'RE NOT THINKING LONG TERM, HOW ARE WE GOING TO SUSTAIN THIS INITIATIVE, WHICH IS SOMETHING THAT THE CITY HAS ACTIVELY BEEN DOING THROUGHOUT ANY TIME THAT WE HAVE A PROJECT.

HOW ARE WE GOING TO FUND THIS INTO THE FUTURE, NOT FOR THE FIRST TWO YEARS, BUT INTO THE FUTURE? THAT'S SOMETHING THAT THE CITY DOES VERY WELL.

LASTLY, STRATEGIC MONITORING.

CITY STAFF THAT WILL TRACK ECONOMIC TRENDS AND POLICY CHANGES TO ENSURE LONG-TERM PHYSICAL HEALTH.

LASTLY, I JUST WANT TO WRAP THIS UP BY STATING THAT THE HEALTH OF OUR GENERAL FUND AND ENTERPRISE FUNDS, THEY'RE ALL WELL ABOVE 100%, AND THAT SIGNALS THAT THE CITY IS IN A GOOD FINANCIAL FOOTING.

NOW, WITH THAT, WE MUST REMAIN PROACTIVE, DISCIPLINED, AND PREPARE FOR ECONOMIC FLUCTUATIONS.

WITH THAT, I TURN IT OVER TO THE COUNCIL.

>> THANK YOU, MR. PEREZ. ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? SEEING NONE, ANY COMMENTS FROM THE MEMBERS.

MAYOR PRO TEM SALDANA.

>> NO COMMENTS.

>> MEMBER MARTINEZ.

>> OUTSTANDING PRESENTATION, SIR.

IT MADE IT EASY EVEN FOR ME TO FOLLOW ALONG, SO THANK YOU.

>> APPRECIATE THAT.

>> MEMBER RAYA.

>> GOOD JOB. IT WAS GREAT PRESENTATIONS, JUST LIKE VINCENT SAID, WELL EXPLAINED.

WE GOT TO SEE SOME GOOD QUESTIONS ASKED TO CLARIFY STUFF.

WELL DONE. THANK YOU.

>> I DO WANT TO BRING SOMETHING UP THAT IS GERMANE TO WHAT WE'RE TALKING ABOUT, AND YOU DID PUT EMPHASIS ON THE FACT THAT THE OUTFIT THAT WE HIRE IS PROJECTING THAT WE MAY GET LESS TAX FOR THIS FISCAL YEAR, IS THAT ACCURATE?

>> MEMBER REYNA.

>> NO. TO COME IN FLAT.

>> TO COME IN FLAT.

>> AT BEST.

>> I THINK WE NEED TO BE PREPARED FOR IT TO ACTUALLY BE LOWER THAN THE PREVIOUS YEARS.

THE REASON FOR THAT IS BECAUSE THE CLIMATE FOR IMMIGRATION POLICIES IS CHANGING.

I THINK THAT THERE IS FEAR WITHIN THE UNDOCUMENTED COMMUNITY FOR BEING OUT THERE EVEN GOING TO SPEND MONEY THAT IN THE PAST, THEY WERE NOT CONCERNED ABOUT.

I THINK THAT WE WOULD BE IRRESPONSIBLE IF WE DO NOT PAY ATTENTION TO THAT BECAUSE IT WILL AFFECT THE REVENUES THAT WILL BE COMING TO OUR CITY, BEING THAT A VERY LARGE PERCENTAGE OF OUR POPULATION IS HISPANIC, THE LARGEST PERCENTAGE OF IT, AND I COULD NOT TELL YOU WHAT PERCENTAGE OF THAT POPULATION IS UNDOCUMENTED.

BUT THERE'S ALREADY THIS FEAR WITHIN THE COMMUNITY, NOT JUST THIS COMMUNITY, BUT COMMUNITIES THROUGHOUT THE ENTIRE UNITED STATES, WHERE PEOPLE ARE JUST REFUSING TO GO OUT AND BEING OUT THERE DOING WHAT PEOPLE DO, WHICH IS LIVING BECAUSE THERE IS JUST FEAR OF BEING DETAINED.

I THINK WE NEED TO BE VERY KEEN ON THAT AND BE AWARE THAT THIS MIGHT AFFECT OUR REVENUES IN THE LONG RUN.

I THINK IT WILL. SO SOMETHING TO BE MINDFUL OF.

>> DEFINITELY.

>> THANK YOU. THAT'S IT FROM ME.

>> MAYOR MEDINA.

>> I HAVE NO QUESTIONS. GOOD PRESENTATION.

MADE IT EASY TO FOLLOW. THANK YOU, MR. PEREZ.

WITH THAT, I WOULD LIKE TO ENTERTAIN A MOTION FOR APPROVAL.

>> MOVE TO APPROVE, MAYOR.

>> SECOND IT.

>> MADAM CLERK, WE HAVE A FIRST AND A SECOND.

CAN WE GET THE VOTE BY ROLL CALL?

>> MAYOR MEDINA.

>>AYE.

>> MAYOR PRO TEM SALDANA.

>> COUNCIL MEMBER MARTINEZ.