[00:00:03]
[1. Call to Order.]
UH, WE HAVE A SPECIAL WORKSHOP TODAY.I'M LOOKING FOR MY AGENDA CAN'T, RIGHT? FOR THE FISCAL YEAR 20 24, 25 BUDGET KICKOFF WORKSHOP.
UM, WE'RE STARTING AT THREE 30 TODAY BECAUSE WE HAVE A LOT OF GREAT INFORMATION.
UH, I WOULD ASSUME OUR CITY MANAGER WANTS TO START US OFF FIRST.
WE WERE DOWN AT THE LEGISLATURE JUST A FEW MINUTES AGO, AND APPRECIATE THE TIME YOU TAKE TO DO THAT.
UH, WANT TO INTRODUCE JARED, WHO'S OUR BUDGET, UH, DIRECTOR WHO'S GONNA SPEND A FEW MINUTES TALKING WITH US ABOUT, I'LL CALL IT THE CURRENT STATE OF EDMOND'S BUDGET.
THIS IS THE KICKOFF FOR OUR EFFORT, SO WE WANT TO PROVIDE A HIGH OVERVIEW OF WHERE WE ARE AND WHERE WE INTEND TO GO WITH THAT, JARED, THANKS.
ALRIGHT, FIRST SLIDE, JUST, UH, IS A BRIEF REPRESENTATION OF WHAT WE'LL BE TALKING ABOUT TODAY.
UH, GET CLOSER TO MIC, PLEASE.
[2. Welcome and Update from City Staff on Fiscal Year 2024-25 Budget Process. ]
WE'LL BE TALKING ABOUT THE, UH, BUDGET PROCESS, UH, ECONOMIC OUTLOOK, REVENUE PROJECTIONS, AND OBLIGATIONS.SO THIS YEAR YOU'LL SEE, UM, SIX DIFFERENT BUDGET WORKSHOPS.
THIS ONE BEING THE FIRST, UH, BUDGET KICKOFF, UM, WILL ALSO COVER CAPITAL PROJECTS, PUBLIC SAFETY BUILDING, UH, BUILDING SAFETY PLANNING, ENGINEERING, UTILITIES, PUBLIC WORKS, SOLID WASTE, ADMINISTRATIVE SERVICES.
AND THEN AT THE VERY END, THE BUDGET, UH, THE BUDGET HEARING WHERE WE WILL PRESENT THE BUDGET TO YOU, UM, IN ITS PROPOSED FORM BEFORE ADOPTION.
SOME OF THE, UH, PROCEDURAL OR PROCESS CHANGES THAT WE'VE MADE TO THE BUDGET THIS YEAR.
UH, THE FIRST ONE WOULD BE, UM, UH, USING A BASE BUDGET, WHICH IS BASICALLY JUST THE CITY'S BUDGET AS ACTUAL, UH, WHAT WE'RE, WHAT WE'VE BEEN SPENDING HISTORICALLY OVER THE PAST FEW YEARS.
INSTEAD OF, UH, GOING AT THIS FROM JUST THROWING NUMBERS AT A WALL, WE'RE STARTING WITH A, A STARTING POINT AND MOVING FROM THAT THERE FORWARD.
THE SECOND ITEM IS WE'RE GOING TO, UM, ENHANCE THE PERFORMANCE MEASUREMENTS WITHIN THE BUDGET.
UH, WE'RE GONNA MOVE TO MORE OF A QUANTITATIVE, QUANTITATIVE METRICS, WHICH, UM, GENERALLY HELP MANAGEMENT TELL EXACTLY HOW DEPARTMENTS ARE DOING AND WHERE THEY MAY NEED HELP, WHERE THEY NEED, MAY NEED ADDITIONAL RESOURCES THROUGH, UH, THROUGH THE AID OF THESE QUANTITATIVE METRICS.
SO, CURRENT STATUS OF SALES AND USE TAX COLLECTIONS.
UH, AS YOU CAN SEE, UM, OUR CURRENT SALES TAX IS DOWN BY 0.3%.
OUR USE TAX IS UP BY 5.21%, AND IN TOTAL, UH, WE ARE SITTING AT A, AN OVERALL GROWTH OF 0.48%.
UM, THE LEFT SHOWS THE SPLIT OF THESE TO THE GENERAL FUND PARKS, 2000 CIP TWO, 2000 CIP, POLICE AND FIRE.
AND THEN, OF COURSE, UH, WHAT THE PORTION IS FOR USE TAX.
THIS IS OUR, OUR PROJECTION FOR THIS CURRENT YEAR WHERE WE'RE GONNA END.
THIS ALSO SHOWS THE GROWTH, UH, HISTORIC GROWTH OVER THE LAST 10 YEARS.
UM, AS YOU CAN SEE, WE'VE KIND OF, WE DIPPED DOWN IN 2017, WENT BACK UP, UH, IN 18 AND 19, AND THEN KIND OF SLOWLY GOT BACK UP AND WE'RE STARTING TO FALL AGAIN IN OUR OVERALL GROWTH.
OUR CURRENT ECONOMIC CONDITION, UH, INFLATION RATE IS AT 3.09%, UM, WHICH IS DOWN FROM 3.35% LAST MONTH, AND DOWN FROM 6.14, 6.41 LAST YEAR.
UM, THIS IS IMPORTANT, IMPORTANT BECAUSE THAT DECREASES OUR BUYING POWER.
UH, THE HIGHER INFLATION IS THE MORE WE'RE GONNA HAVE TO SPEND ON NORMAL EVERYDAY THINGS, JUST LIKE YOU WOULD IN YOUR OWN PERSONAL BUDGET.
[00:05:01]
A LOT OF THINGS TO A CITY'S BUDGET AND REALLY MAKES IT TO WHERE WE CAN'T DO AS MUCH WITH THE MONEY THAT, THAT WE'RE BRINGING IN.UM, ALSO CURRENT FEDERAL UNEMPLOYMENT RATE IS 3.7, AND THEN CURRENT OKLAHOMA UNEMPLOYMENT RATE IS 3.5.
SO WE'RE DOING A LITTLE BIT BETTER THAN THAT IN THE NATIONAL AVERAGE, BUT, UM, GENERALLY WE MAY SEE THIS, UH, CHANGE HERE WITHIN THE NEXT YEAR.
I'LL GET TO THAT HERE IN A FEW SLIDES.
UH, ADDITIONALLY, UH, BUILDING PERMIT STATS, UH, FOR YEAR TO DATE TODAY, UM, AS YOU CAN TELL FROM THIS POINT LAST YEAR, WE ARE DOWN IN VALUATION PERMITS AND REVENUE.
UM, LUCKILY THE REVENUE PORTION ISN'T DOWN NEARLY AS MUCH AS THE VALUATION, WHICH THE VALUATION IS NOT EXACTLY, UM, UH, IT'S REALLY JUST KIND OF A NUMBER THAT IS GIVEN BY THE DEVELOPERS.
BUT, UH, REALLY WHAT YOU WANT TO TAKE A LOOK AT MORE SO IS THE NUMBER OF PERMITS, SPECIFICALLY THE TYPES OF PERMITS, UH, RESIDENTIAL VERSUS COMMERCIAL, UH, CAN INDICATE SPEC, ESPECIALLY FOR A CITY SUCH AS EDMOND.
IF RESIDENTIAL PERMITS ARE FALLING, YOU'RE SEEING LESS RESIDENTIAL ROOFTOPS GOING IN, AND AS YOU CAN TELL, THAT'S GOING DOWN AT A MUCH FASTER RATE THAN, UM, THAN THE COMMERCIAL RATES PERMITS.
[3. Update from City Staff on Economic Outlook. ]
ON THE ECONOMIC ASSUMPTIONS THAT WE'RE USING FOR THIS YEAR, THIS IS A GRAPH THAT YOU'VE PROBABLY, WELL, ACTUALLY THIS KEEPS JUMPING AROUND ON ME.Y'ALL PROBABLY SEEN THIS SLIDE BEFORE, UH, WHEN CHRIS GANDER OR ANYBODY ELSE HAS COME UP AND TALKED TO YOU ABOUT, UH, HOW THE MARKET IS CURRENTLY DOING.
THIS IS THE TEN TWO, UH, INVERSION CHART.
BASICALLY WHAT THIS MEANS IS USUALLY WHENEVER THERE'S A TEN TWO INVERSION, SO WHENEVER THE, UH, TWO YEAR, UM, TREASURY, UH, TREASURY BOND YIELD DROPS IS, UH, I'M SORRY, IS HIGHER THAN THE 10 YEAR TREASURY BOND, USUALLY THAT INDICATES THAT THERE'S GOING TO BE RECESSION IN THE NEAR FUTURE.
AS YOU CAN TELL ON THIS, EVERY TIME THAT THERE'S BEEN A DROP, THERE'S A LITTLE GRAY POINT THAT INDICATES A RECESSION BACK IN JUNE OF 2022.
THAT WAS THE FIRST TIME THAT WE HAD THIS TEN TWO INVERSION.
SO AT SOME POINT, WE ARE GOING TO MOST LIKELY GO THROUGH SOME FORM OF A RECESSION.
THIS IS THE FEDERAL FUNDS RATE.
SO WHEN, UH, THE FOMC DECIDES TO CUT RATES, UH, THEY'VE BEEN RAISING RATES FOR QUITE A WHILE NOW, BUT WHENEVER THEY START TO CUT RATES, USUALLY THAT MEANS SOME FORM OF A RECESSION AS WELL.
WE HAVE TWO SEPARATE INDICATORS SHOWING THAT WE'RE MOST LIKELY GONNA GO INTO SOME FORM OF A RECESSION HERE SOON.
UM, THAT'S JUST KIND OF WHAT THIS IS INDICATING.
THIS PIECE OF INFORMATION, UH, WAS PUT TOGETHER BY, UH, TWO PROFESSORS AT OKLAHOMA STATE UNIVERSITY CENTER OF APPLIED ECONOMIC RESEARCH.
UM, THE BIG TAKEAWAY ON THIS, UH, I KNOW THERE'S A LOT OF INFORMATION ON THIS SLIDE, AND YOU CAN CRUISE THAT INFORMATION AT YOUR LEISURE, BUT THE BIG TAKEAWAY ON THIS IS THAT, UM, MOST ECONOMISTS ARE LOOKING AT A SLIGHT DECLINE IN THE US ECONOMY, AND THESE SPECIFIC ECONOMISTS BELIEVE THAT THE EFFECT WILL BE, UM, WILL HIT OKLAHOMA, BUT IT WON'T COMPLETELY LAST.
WE'LL SEE A DIP, AND THEN WE'LL LEVEL EVENTUALLY.
UH, THAT'S PRETTY MUCH WHAT WE'RE, WHAT WE'RE LOOKING AT FOR OUR NEXT YEAR'S BUDGET.
WE'RE LOOKING AT SALES TAX, THE REST OF OUR ECONOMY DIPPING DOWN AND THEN HITTING A LEVEL POINT.
SO WHAT THIS REALLY MEANS IS A RECESSION THAT'S NOT EXACTLY, UM, ALL THAT IMPACTFUL, BUT REALLY JUST KIND OF KEEPS EVERYTHING THE SAME AND STATIC.
[4. Discussion of Revenue Projections and Obligations for Fiscal Year 2024-25.]
FOR THE REVENUE PROJECTIONS, THIS IS JUST THE TAX DISTRIBUTION AS IT STANDS AT THE MOMENT.UH, 63% OF ALL TAXES GO TO THE GENERAL FUND, 28% CAPITAL PROJECT FUNDS, AND THEN 9% TO SPECIAL REVENUE FUNDS.
THE REVENUE ASSUMPTIONS THAT WE'VE BEEN, UH, WORKING OFF OF THIS CURRENT YEAR IS USING THAT 4.5%
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GROWTH AS OPPOSED TO THE 2% THAT WE HAD INCLUDED IN THIS CURRENT YEAR'S BUDGET LAST YEAR.UH, WE'RE KNOCKING THAT BACK DOWN TO WHAT WE'RE CURRENTLY SEEING, WHICH IS THE 0.45% GROWTH, AND THEN WE'RE PLUGGING IN A 0.5% GROWTH FOR NEXT YEAR.
SO ULTIMATELY, THAT WOULD BE A 0.95% GROWTH FROM 2000 OR FROM LAST FISCAL YEAR.
AND THEN ADDITIONALLY, UM, OUR OTHER GOVERNMENT SOURCES REVENUES ARE COMING IN ABOUT 0.8%.
CURRENTLY WE'RE KEEPING THAT FLAT, AND THEN ENTERPRISE FUNDS WILL DO THEIR OWN, CONSIDERING THAT DOESN'T TRACK THE SAME WAY THAT OUR REVENUES, OUR TAX REVENUES AND OTHER FUNDS COME IN.
SO WE STILL HAVE 72 FUNDS REPORTED, SIX DIVISIONS, GENERAL FUNDS, SPECIAL REVENUES, CAPITAL UTILITY FUNDS, OTHER ENTERPRISE FUNDS AND INTERNAL SERVICE FUNDS.
UM, WITH THOSE, THE SPECIFIC PARAMETERS THAT WE'RE USING THIS YEAR IS TO STILL MAINTAIN THE 10% UNRESTRICTED GENERAL FUND BALANCE, UM, MAX OF 4 MILLION IN SUPPLEMENTAL FUNDING FROM EDMUND PUBLIC WORKS AUTHORITY.
AND THEN, UM, EXPENDITURES DECREASE DUE TO, UH, RIGHT SIZING OF DEPARTMENT'S.
THIS IS WHAT I WAS TALKING ABOUT PREVIOUSLY.
INSTEAD OF BUDGETING AT A HIGHER RATE, WE'RE LOOKING AT WHAT WE'VE SPENT HISTORICALLY AND TRYING TO USE THAT TO SEE WHAT WE'RE GOING TO DO IN FUTURE YEARS.
THAT WORKS FOR A LOT OF DIFFERENT, UH, ACCOUNTS.
KIND OF THE, THE MORE BASIC ACCOUNTS.
HOWEVER, WE WILL STILL HAVE ADDITIONAL, UH, ITEMS INCLUDED IN THERE FOR DEPARTMENT REQUESTS, ALL OF THAT TYPE OF THING.
BUT THE DEPARTMENTS ARE WORKING OFF OF WHAT THEY'VE BEEN SPENDING HISTORICALLY OVER THE LAST SIX YEARS.
THE EXPENSE GOALS THAT WE'RE TRYING TO REACH FOR THIS CURRENT YEAR, UH, WOULD BE A CUMULATIVE DIRECT, DIRECT COST.
UM, SO THE DIRECT COST IS SPECIFICALLY WHAT THE DEPARTMENTS ARE SPENDING WITHIN THEIR OWN BUDGETS.
UH, THAT'S TAKING OUT TRANSFERS AND THAT TYPE OF THING.
USUALLY THE TRANSFERS ARE MOSTLY FROM THE INTERNAL SERVICE FUNDS, BUT THIS IS PURELY WHAT THE DEPARTMENTS ARE SPENDING.
UH, WE ARE SETTING THAT AS A NOT TO EXCEED 430 MILLION.
NOW, UM, WHAT THIS, IF YOU LOOK SPECIFICALLY AT THE GENERAL FUND, THIS WOULD AMOUNT TO ABOUT $25 MILLION.
THAT'S $5 MILLION OVER WHAT WE HAD PREVIOUSLY BUDGETED FOR THIS CURRENT YEAR.
UH, THE REASON FOR THIS IS WE'RE TRYING TO GET BACK TO THAT 10%, WHICH WE HAD ADDITIONAL FUNDS OVER THE 10% THAT WE'RE TRYING TO PUT TOWARDS SOME OF OUR ADDITIONAL GOALS THAT WE'VE MENTIONED BELOW $5 MILLION EXTRA, UH, FOR ROAD MAINTENANCE AND TO IDENTIFY ONE TIME CAPITAL PROJECT IN THE AMOUNT OF THREE TO $5 MILLION RANGE.
UH, THAT'S PRIMARILY WHAT WE'RE FOCUSING ON, UH, WITH THE 430 MILLION.
JUST TO GIVE YOU SOME PERSPECTIVE, LAST YEAR'S DIRECT COST EXPENSE WAS 428.5 MILLION.
UH, THIS CURRENT BUDGET YEAR, UH, OUR DIRECT COST IS 40, UH, 487.5 MILLION.
HOWEVER, 81.4 MILLION OF THAT WAS, UH, INCLUDING THE ISSUANCE OF THE, UH, CITY, CITY CENTER AND YMCA SLASH LIBRARY FUNDS.
UH, ALSO OTHER EXTERNAL OBLIGATIONS.
WE STILL HAVE THE 3% TO CLARK OF PRIOR YEAR JOURNAL FUND SALES AND USE TAX COLLECTIONS.
UH, WE ALSO ARE GOING TO MAKE SURE THAT WE MEET FUNDING REQUESTS OF PARKS TRUST, EVAC, EDMUND GUTHRIE REGIONAL AIRPORT.
ALL THIS, UH, IS ESTIMATED TO COME TO ROUGHLY $2 MILLION.
I KNOW THAT WAS SUPER BORING AND A LOT OF NUMBERS AND WHATNOT, BUT, UM, DO Y'ALL HAVE ANY QUESTIONS, COMMENTS? IS THERE ANYTHING THAT Y'ALL WOULD SPECIFICALLY LIKE TO KNOW ABOUT THE WAY THAT WE'RE APPROACHING BUDGET THIS YEAR? SO ARE YOU THINKING THERE'S GONNA BE A RECESSION, BUT BASICALLY IT'S GONNA BE A SOFT LANDING FOR THE RECESSION? YES.
HIS NAME ISN'T, HE'S NOT THE FED, BUT WE'RE GONNA DO OUR BEST TO, TO GIVE US A SOFT LANDING BECAUSE IT'S RIGHT.
HOWEVER, WITH THAT, WHAT WE'RE REALLY TRYING TO DO WITH THIS BUDGET HERE BY KEEPING EVERYTHING FLAT, FLAT, MM-HMM,
[00:15:01]
THEY ARE AT THE MOMENT SO THAT IF WE DO HAVE A RECESSION, WE'RE NOT DIPPING BELOW, UH, ON ANY SERVICES.WE'RE STILL PROVIDING EVERYTHING THAT WE HAVE IN THE PAST.
UH, ACTUALLY ADDING A LITTLE BIT TO THAT TO MEET THE DEMANDS OF, UM, CERTAIN AREAS WITH THE ADDITIONAL ROAD MAINTENANCE.
UM, SO REALLY WHAT WE'RE TRYING TO DO IS JUST KEEP EVERYTHING FLAT, BUT KEEP SERVICE WHERE IT IS AND THEN TRY TO DO A FEW KEY INITIATIVES WHERE WE CAN.
NOW WITH ALL OF THIS, ONE THING THAT WE'RE, WE'RE ALSO GOING TO BE CLOSELY WATCHING IS, UH, SALES TAX THROUGH THE REST OF THIS YEAR.
WE'VE HAD FOUR OUT OF THE FIVE OF OUR LARGEST SALES, SALES AND USE TAX MONTHS COME IN.
WE STILL HAVE ONE LEFT TO GO, WHICH IS MAY.
UM, AND DEPENDING ON HOW SALES AND USE TAX GOES BETWEEN NOW AND WHEN WE PRESENT THE PROPOSED BUDGET, WE'RE GONNA KEEP LOOKING AT THIS AND WE'RE NOT JUST GONNA SIT THERE AND SAY, THIS IS OUR FINAL WE WE'RE GONNA DO.
BUT AS THE ECONOMY KIND OF EVOLVES AND, UM, TIME PASSES, WE'RE GONNA KEEP DOING OUR ANALYSIS TO MAKE SURE THAT WE'RE, WE'RE REACTING TO EVERYTHING THAT WE CAN AS IT COMES UP.
UM, ANOTHER THING THAT I DID NOT MENTION ON MY SLIDES IS THAT WE DO PLAN ON DOING A MID-YEAR BUDGET AMENDMENT, UH, NEXT YEAR, SO THAT IF, UH, THE ECONOMY DOES GO DOWN FURTHER OR IF THE, IF WE HAVE ADDITIONAL FUNDS IN ANY SPECIFIC, UH, AREAS THAT WE CAN MEET DEPARTMENT'S NEEDS, UH, THERE'S A LOT OF REQUESTS THIS YEAR THAT WE MAY NOT BE ABLE TO ACCOMMODATE, UM, JUST BECAUSE WE'RE TRYING TO KEEP OUR BUDGET FLAT.
BUT WE DO WANT TO GIVE THE OPPORTUNITY TO COME BACK MIDYEAR AND HELP THE DEPARTMENTS OUT WHERE THEY MAY BE, BECAUSE THERE'S ALWAYS THINGS THAT WILL POP UP NO MATTER WHAT THROUGHOUT THE, THROUGHOUT THE YEAR.
SO, AND WITH THE, UM, I'VE ASKED THIS QUESTION EVERY YEAR, WE JUST DON'T KNOW WHY OUR OUTSIDE OF A SIGNIFICANT WEATHER EVENT, WHY OUR CELL TAX EBBS AND FLOWS SO MUCH, ESPECIALLY IN THE REGION.
I MEAN, SALES TAX, IF YOU CAN FIND OUT WHY YOUR SALES TAX IS GOING UP AND DOWN, THEN, I MEAN, YOU'VE GOT A GREAT CAREER AHEAD OF YOU IN MULTIPLE DIFFERENT AREAS.
MAINLY CONSULTING, BECAUSE THERE'S REALLY NO RHYME OR REASON TO IT.
IT JUST FLUCTUATES WITH THE ECONOMY AND THERE REALLY IS NO WAY TO PIN THAT DOWN.
YOU CAN DO ALL THE FORECASTING YOU WANT TO, BUT ULTIMATELY SALES AND USE TAX IS COMPLETELY DEPENDENT ON THE, UM, ON THE BUYER.
SO IF PEOPLE ARE WANTING TO SPEND MONEY, THEY, YOUR SALES TAX WILL GO UP.
UM, BUT IF NOT, UNFORTUNATELY IN SPECIFICALLY A RECESSION, THAT SPENDING USUALLY DOES GO DOWN.
IF I CAN ADD, WE, WHILE THERE IS SOMEWHAT OF A, A BEST CASE, THERE'S A CONSULTANT COMES IN AND SAYS CERTAIN THINGS, IT'S ALWAYS MARKETS OPERATING ON THEIR OWN, WE ARE GONNA EXPLORE, UM, THERE'S A COUPLE OF CITIES WITHIN THE METRO THAT, THAT HAVE A FIRM THAT THEY UTILIZE TO HELP IN THEIR ECONOMIC FORECASTING, UH, THAT GETS INVOLVED WITH THE CITY AS FAR AS DETERMINING WHAT TO PROJECT ON THEIR BUDGETS.
WE'RE PROBABLY GONNA EXPLORE ENGAGING, UH, A CONSULTANT AT, AT LEAST AT AN INITIAL LEVEL TO BEGIN TO, TO DIVE DEEPER INTO OUR NUMBERS.
WHEN I SAY NUMBERS, NOT NECESSARILY BUDGET NUMBERS, BUT, UM, SALES AND USE TAX, WHERE'S IT COMING FROM? WHERE'S IT GOING? WE KNOW RIGHT, WRONG OR DIFFERENT THAT WE, WE LEAK A LOT OF SALES TAX TO OUR, OUR NEIGHBORING JURISDICTIONS.
UM, UH, AND THEY'RE ALSO GONNA LOOK AT OUR BUILDING TRENDS.
UH, AS WELL AS THE GENERAL MACRO, UH, WHAT WE'RE SEEING IN OKLAHOMA OVERALL.
SO, UM, IT'S OFTEN USED BY OKLAHOMA CITY AND NORMAN AND OTHER CITIES TO USE THAT OUTSIDE CONSULTING TO PROVIDE AN ADDITIONAL EXTERNAL INVESTIGATION THAT BUTCHER LOCAL ECONOMY.
EVAN'S A LITTLE UNIQUE BECAUSE WE'RE, WE'RE LARGELY A RESIDENTIAL BASED COMMUNITY.
WE DON'T HAVE A LOT OF MANUFACTURE INDUSTRIAL USES.
SHOPPING IS ONE OF THE MAJOR INDUSTRIES, BUT PEOPLE SHOP WHERE THEY SHOP, THEY DON'T NECESSARILY, UH, KNOW WHERE THE BOUNDARIES OF A CITY ARE.
SO, YOU KNOW, THAT'S ONE OF THE EFFORTS THAT WE'VE TALKED ABOUT IS BUY LOCALLY, SHOP LOCALLY, IS KEEP THOSE DOLLARS HERE WITHIN ADMIN.
SO WE'RE GONNA PROBABLY ENGAGE SOMEBODY, IT, IT, WE WON'T, WE'LL START THAT PROCESS THIS YEAR.
WE PROBABLY WON'T HAVE A FULL EFFORT THROUGH THIS YEAR, BUT MAYBE IN THE COMING YEARS TO, TO GET SOME MORE EXPERTISE AS WE START TO FORECAST YES.
[00:20:01]
THING JARED KIND OF MENTIONED, BUT ONE OF THE ASPECTS IF WE SET A GOAL AND WE HAVE AS A CITY TO HAVE A 10% GENERAL RESERVE ACROSS THE CITY IS THERE'S NOT, THERE'S, THERE'S NOT NECESSARILY A NEED WITHIN EACH DEPARTMENT TO CREATE THEIR OWN RESERVE, KIND OF DOUBLING UP.SO WE'RE, WE'RE TRYING TO FIND AS WE GO THROUGH WITH DEPARTMENTS, WHAT ARE YOU ACTUALLY SPENDING PER YEAR VERSUS WHAT YOU MAY ACTUALLY BUDGET? ARE THERE OPPORTUNITIES TO FIND SOME SAVINGS? AND IF WE CAN ACCUMULATE THOSE SAVINGS, WE MAY ABLE TO DO OTHER THINGS THAT PRESENTLY WE MAY THINK WE HAVE TO GO FOR CIP FUNDING OR DIFFERENT THINGS LIKE THAT.
SO WE'RE GONNA TRY AND CREATE A LEANER BUDGET THAT TENDS TO WHAT WE'RE ACTUALLY SPENDING NOT BUILDING ON OUR OWN SAFETY NETS WITHIN EACH DEPARTMENT.
UM, ONE WOULD BE IS, YOU KNOW, BUDGET FORECASTING.
YOU KNOW, WE'VE BEEN A CITY THAT'S BEEN 30,000, 40,000, WE'RE ON OUR WAY TO A HUNDRED THOUSAND.
WE'VE GOT GROWING, UM, NEEDS AND COMPLEXITIES.
AND TYPICALLY AS THINGS GROW IN ANY ORGANIZATION, WHETHER IT BE MUNICIPAL OR EVEN PRIVATE SECTOR, YOU JUST KIND OF LAYER THINGS ON HOW ARE WE AS FAR AS KIND OF A UNIFIED, UM, REPORTING SYSTEM AS FAR AS A BURSAR SYSTEM THAT SHOWS US, ARE YOU ABLE RIGHT NOW TO LIKE, PULL UP A DASHBOARD AND SEE CASH FLOW IN AND OUT FROM THE VARIOUS DEPARTMENTS? OR HOW DID, EXPLAIN TO ME HOW THAT PROCESS GOES NOW AS FAR AS YOUR WORLD.
SO WE HAVE, UM, WE HAVE FINANCIAL REPORTING WITHIN FE AND OTHER FINANCE ENTERPRISE, WHICH, WHICH IS OUR, UH, PRODUCT FROM CENTRAL SQUARE.
IT'S OUR MAIN FINANCIAL SOFTWARE.
UM, HOWEVER WE ARE RIGHT NOW, A LOT OF WHAT I'M DOING IS PULLING FROM THAT AND USING MY OWN CUSTOM BUILT DASHBOARDS AND REPORTS.
HOWEVER, UH, ONE OF THE THINGS THAT I AM DOING RIGHT NOW IS WE'RE WORKING THROUGH THE PROCESS OF GETTING A BUDGET SOFTWARE THAT WOULD BE ABLE TO MORE, UM, INTRICATELY SHOW THOSE DIFFERENCES.
SOME OF OUR, OUR SOFTWARES SHOW A LITTLE BIT, UH, AS IT STANDS RIGHT NOW, BUT IN TERMS OF FORECASTING SPECIFICALLY, THE, THE SOFTWARE THAT WE ARE CURRENTLY UNDER CONTRACT NEGOTIATION WITH WOULD BE ABLE TO SHOW US A LITTLE BIT MORE.
UM, BUT AT THE MOMENT IT'S REALLY JUST KIND OF SPREADSHEETS AND PRETTY BASIC REPORTS, UH, P AND L REPORTS AND ALL OF THAT.
'CAUSE I'M TRYING TO GET IT, AND CONGRATULATIONS BY THE WAY.
LIKE THAT'S, SOMEONE TOLD ME HOW TO DO SPREADSHEETS THE WAY YOU JUST DESCRIBED, I'D BE UNDERNEATH THE DESK CRYING.
SO I'M GLAD THAT YOU'RE, YOU'RE CRANKING IT OUT.
SO IF WE LOOK TOWARDS MAYBE BEING 120, 125,000 PEOPLE YES.
YOU KNOW, AT SOME POINT, OR I'M NOT BY ANY MEANS THIS IS, UH, BUT IF LIKE, SAY YOU WERE NO LONGER WITH THIS, YOU KNOW, THE ORGANIZATION, THE POSITION THAT YOU ARE HAVING SOMEBODY WHO'S, YOU KNOW, CREATING THEIR OWN FORMULAS AND SPREADSHEETS.
SO AT SOME POINT I THINK COUNCIL WILL HAVE TO MAKE A CAPITAL DECISION IN REGARDS TO SOMETHING PRETTY SIGNIFICANT.
MY CHALLENGE IS I COULD GET 20 SOFTWARE COMPANIES UP HERE THAT WOULD ALL SELL ME THE WORLD AND DAZZLE IT AND SHOW US ALL THE, YOU KNOW, THE CLOUD WHIZ BANK STUFF THEY COULD DO.
THEN COMES THE IMPLEMENTATION PART OF IT AND WE CREATE AN ICEBERG WHERE WE'RE TRYING TO CREATE SOMETHING THAT WORKS ON TOP, BUT WE HAVE ALL THIS MAINTENANCE ON THE BOTTOM AND THEN WE GOTTA CONNECT THINGS.
UM, SO I'M JUST TRYING TO GET A SENSE FOR, UM, AT SOME POINT WE'LL HAVE TO PULL THAT TRIGGER.
I DON'T KNOW IF THOSE CONVERSATIONS ARE HAPPENING AND AT WHAT POINT WE'LL HAVE TO PUT DOWN THE CAPITAL TO, TO DECIDE ON THAT.
A TENTATIVE DATE, UM, HAS BEEN SET FOR THE LAST MEETING IN APRIL TO BRING YOU THE CONTRACT WITH QUESTA.
UH, THAT IS THE, UH, SPECIFIC SOFTWARE THAT WE SELECTED THROUGH OUR FEE PROCESS.
UM, QUESTA HAS A LOT OF VERY INTRICATE AND COMPLEX, UH, MODULES THAT IT USES TO FORECAST.
IT HAS, BUT IT ALSO, IT HAS A OPERATING A CAPITAL, UM, PERSONNEL REPORTING, AND I KNOW I'M MISSING SOMETHING ELSE, BUT THEN A, UH, WHAT'S CALLED THE OPEN BOOK, WHICH IS A OUTSIDE, IT'S KIND OF A TRANSPARENCY PORTAL WHERE YOU CAN PUT THE BUDGET OR ANYTHING REALLY THAT YOU WANT TO OUT ONLINE.
BUT, UM, THAT SOFTWARE CURRENTLY FIRST, FIRST YEAR IS GOING TO BE ROUGHLY $200,000.
UH, HALF OF THAT IS, UH, PROFESSIONAL SERVICES.
THE OTHER HALF IS THE, UH, LICENSING AGREEMENT WITH THE SOFTWARE ITSELF.
THAT'S HOW MUCH IT WOULD BE EVERY YEAR AFTER THAT.
UM, IT, IT IS EXACTLY THE SOFTWARE THAT YOU WERE MENTIONING.
I'VE USED, UH, THESE TYPES OF SOFTWARES IN MY LAST JOB, I ACTUALLY HELPED IMPLEMENT ONE OF THESE SOFTWARES IN MY LAST JOB AND I'M GONNA IMPLEMENT THIS ONE AS WELL, SO THAT ONCE WE HAVE THIS SET FORTH,
[00:25:01]
IT WILL GIVE NOT ONLY PEOPLE LIKE MYSELF AND SCOTT, THE ABILITY TO GO OUT THERE, BUT YOURSELF AND ANYBODY IN THE PUBLIC WILL BE ABLE TO ACCESS OUR BUDGET, SEE EXACTLY WHAT'S GOING ON IN A MORE INTRICATE LEVEL.SO TO THAT POINT, FOR DECISION MAKERS LIKE YOURSELF YES.
UH, SO THE POLICY, BUT THEN POTENTIALLY, YOU KNOW, THE CITIZEN COULD GO THERE AND SAY, YOU KNOW, WHAT ARE WE SPENDING ON PARKS? OR WHAT IS THIS? YOU KNOW, WHATEVER KIND OF THE BIG, THE BIG OVERVIEW IS.
SO LOOK FORWARD TO THAT PRESENTATION.
I THINK THAT'S SOMETHING THAT WE'LL HAVE TO ENGAGE ON.
SO I'M GLAD THAT WE'RE ALREADY HAVING THOSE CONVERSATIONS.
ANYTHING ELSE NOW TO THAT, I GUESS THAT POINT, UM, FINANCE COMMITTEE, JARED HAS COME TO FINANCE COMMITTEE SEVERAL TIMES TALKING ABOUT THE SOFTWARE THEY'RE LOOKING AT IN THAT PROCESS.
ONE, ONE OF THE INTERESTING PIECES OF THAT SOFTWARE IS AS MUCH AS IT'S INTERNAL LOOKING, IT IS HEAVY ON EXTERNAL.
SO YOU CAN RUN SURVEY CONSIDERATIONS.
LIKE IF YOU WANTED TO RUN A SCENARIO AND PUT IT OUT THERE TO THE PUBLIC AND SAY, JARED, HELP ME OUT IF YOU HAVE $10 AND YOU CAN SPEND IT ON THESE DIFFERENT THINGS.
AND YOU CAN, THIS SURVEY COULD BE HOW WOULD YOU SPEND IT? AND THEY COULD GO THROUGH INDIVIDUALLY SAY, I WANNA SPEND $4 HERE, $3 THERE, OR WHATEVER, AND, AND CREATE A BALANCE BUDGET.
BUT ALSO COULD SAY, IF YOU WANT RAISE THE LEVEL OF SERVICE MM-HMM.
SO IT'S AN EXTERNAL FACING, SO ALLOWS COUNCIL MEMBERS TO SEE, TO START, I'LL CALL IT DOING ROAD SHOWS ABOUT BUDGETING TO OUR COMMUNITY TO SAY WHAT ARE THE CRITICAL ISSUES FOR YOU MIGHT BE DIFFERENT TO BEING, DEPENDING ON WHICH WARD YOU'RE IN.
IF AN OLDER, MORE ESTABLISHED WARD, IT MAY BE, HEY, WE WANT MORE DOLLAR SPENT ON EXISTING PARKS VERSUS WARD TWO MAY BE HAY, ROADS AND STREETS.
'CAUSE IT'S JUST TWO LANE ROADS.
AND IF Y'ALL WANNA SEE A, AN EXAMPLE OF THAT, UM, AT YOUR OWN LEISURE, UH, BALANCING ACT IS THE SPECIFIC SIDE OF THINGS THAT WE'LL BE DOING THAT FUNCTION.
AND THEY DO HAVE A REALLY COOL DEMO SITE, UM, ON THEIR WEBSITE THAT YOU CAN GO TAKE A LOOK AT AND IT KIND OF SHOWS EXACTLY WHAT THE CITY MANAGER IS, IS TALKING ABOUT.
THAT WAS, THAT WAS EVERYTHING.
SO WHAT THE REAL ISSUE, WELL NOT THE ISSUE, BUT FROM THE DISCUSSION OR LACK OF, OR IS THAT THIS IS GONNA BE A LEAN BUDGET COMING UP.
AND SO WE'RE UP HERE GONNA HAVE TO TAKE THAT INTO CONSIDERATION AS WE LOOK FORECASTING FOR THE NEXT YEAR, WHAT WE WANT, WHAT WE DON'T WANT TO DO, WHAT, WHAT, WHAT'S NECESSARY, ET CETERA.
IT'S GONNA BE A LOT OF CONVERSATION, UM, COMING UP AND, AND IT'S JUST THE WAY LIFE IS.
SO, BUT YOU KNOW WHAT, WE WILL, I'M GLAD WE'RE BEING PROACTIVE WITH OUR DISCUSSIONS, OUR CONVERSATIONS AND UH, WE'LL, WE'LL GET THROUGH IT AS A CITY LIKE WE'VE ALWAYS DONE.
IS THERE ANYTHING ELSE THAT WE NEED TO DISCUSS ON THIS WORKSHOP, SIR? SO SCOTT, YOU WERE MENTIONING THAT, UM, SO WE HAVE A 10% RESERVE IS THE IDENTIFIED FOR THE CITY, KIND OF LIKE CITYWIDE, CORRECT? CORRECT.
AND THEN WHAT YOU WERE SAYING IS THAT SOMETIMES, AND I WOULD DO THIS TO YOU, IF I WAS LEADING A DEPARTMENT, I WOULD SAY MY, BUT THEN MY RESERVE WITHIN THAT IS X.
SO YOU'RE TRYING TO SAY YOU'RE GONNA LOOK AT DEPARTMENT BY DEPARTMENT TO SEE IF THAT'S CAPTURED WITHIN THE TOTAL INSTEAD OF A TOTAL PLUS.
IS THAT, DO I UNDERSTAND THAT? UH, A LITTLE BIT.
SO ESSENTIALLY THE CITY HAS IT, AND JARED, YOU'RE WE'RE WELCOME TO CHIME IN ON THE CITY HAS SET A GOAL TO HAVE 10% RESERVES, UH, THAT THE CITY CAN DRAW ON, LET'S SAY THE NEXT ICE STORM OR SOMETHING COMES THAT WE HAVE SET ASIDE.
OUR AUDITORS ARE, OUR FINANCIAL ADVISORS SAY THAT'S PER, THAT'S KIND OF THE MINIMUM.
THEY SUGGEST, THEY THINK SOMETIMES TO BE HIGHER IN SOME DIFFERENT CITIES.
BUT TO HAVE 10% SET ASIDE, I'LL CALL IT FOR RAINY DAY EVENTS.
UH, AND, AND SO WE KNOW WHAT THAT NUMBER IS.
WHAT WE'RE DOING NOW IS GOING THROUGH EACH DEPARTMENT AND IF LET'S SAY THE LAST FIVE YEARS, DEPARTMENT X HAS REALLY ONLY SPENT 80% OF THEIR BUDGET, SO LET'S JUST SAY $10 AND, BUT THEY'RE ONLY ON AVERAGE YEAR SENDING $8, IS THERE, IS THERE A BENEFIT FOR US TO PULLING THAT $2 BACK
[00:30:01]
TO ALLOW US TO DO OTHER THINGS, UH, WITHOUT HAVING TO IMPACT OUR OVERALL 10% GENERAL FUND? SO IT'S SOMEWHAT LIKE I GOT A 10% GENERAL FUND, UH, RESERVE.AND THEN SOME DEPARTMENTS ARE CREATING THEIR OWN BECAUSE OF THEY'RE NOT SPENDING IT EVERY YEAR AN ADDITIONAL SAVINGS ACCOUNT.
SO ON THE REPORTING, IF YOU HAVE A DEPARTMENT THAT SAYS, HEY, WE WE'RE GONNA NEED TO BUILD X OR Y OR CREATE WHATEVER, UPGRADE, WHATEVER IT IS, AND LET'S COME UP WITH A NUMBER JUST OUTTA THE BLUE, SAY IT'S COST $5 MILLION TO DO WHATEVER THAT IS, THAT DEPARTMENT MIGHT GO AND START, YOU KNOW, SCROLLING AWAY.
THE NUTS NEEDED TO BE ABLE TO DO THAT.
UM, SINCE LAST YEAR, YOU KNOW, IT WAS PRETTY QUICK AS FAR AS LIKE BUDGET.
YOU GET SWORN IN IN MAY, YOU'RE VOTING IN THE 1ST OF JUNE ON A BUDGET.
DO WE HAVE LIKE A UNIFIED, SO LIKE WHEN WE GET THE BUDGET BACK THIS YEAR AND IT'S BROKEN BY BY DEPARTMENT, CAN WE AS ON CITY COUNCIL CLEARLY SEE LIKE, LIKE, LIKE IT WAS HARD, LIKE FOR SOME OF IT, IT WAS KIND OF HARD TO FIND THE LIKE, OH, THIS IS CASH THAT IS GOING TO SOME TYPE OF PURPOSE THAT'S BEEN DETERMINED BY THE DEPARTMENT, BUT MAYBE NOT COUNCIL.
UM, WE BREAK OUT OUR RESERVES, OUR FUND BALANCES SPECIFICALLY INTO DIFFERENT PORTIONS.
UM, USUALLY THAT'S ALLOCATED UNALLOCATED AND WE'LL SPECIFY OUT EXACTLY WHAT THAT IS DESIGNATED FOR.
UM, NOT EXACTLY PER PROJECT OR ANYTHING ALONG THOSE LINES, BUT WITHIN THE BUDGET.
AND I CAN HAVE THIS FOR THE, THE BUDGET HEARING AS WELL AS OUR, OUR FUND BALANCE CALCULATION, WHICH IS SHOWING, UM, AVAILABLE CASH SPECIFICALLY WHEN WE TALK ABOUT FUND BALANCE AND RESERVES, WHENEVER WE BRING THAT TO YOU AT A BUDGETARY BASIS, WE WERE TALKING ABOUT SPECIFICALLY AVAILABLE CASH WITH ALL OF THOSE OTHER, UM, ASSIGNMENTS TAKEN OUT.
UM, BUT WE CAN, WE CAN BREAK OUT ALL OF THE ASSIGNED AND KIND OF TELL YOU WHAT THOSE ARE AND, AND WHATNOT.
DOES THAT HELPFUL? LIKE, SO FOR, I'LL GIVE YOU LIKE A REAL WORLD EXAMPLE OF LIKE SAY DEPARTMENT SAYS WE WANNA BUILD X AND IT MIGHT BE A VERY NOBLE GOOD PURPOSE AND IT MIGHT VERY WELL NEED TO GET DONE AND IT MIGHT END UP SAVING US MONEY AND IT MIGHT EVEN BE BENEFICIAL AND HELPFUL.
THEN WE MIGHT GET PELICAN BAY WHO ALL OF A SUDDEN WE GOT KIDS AND FAMILIES, IT'S COMPLETELY FULL AND IT'S LEAKING AND WE DON'T HAVE IDENTIFIED FUNDS.
AND SO THE ABILITY TO GO IN THERE AND BE LIKE, OKAY, WELL THIS IS ACTUALLY DOLLARS THAT ARE, THAT, THAT HAVE BEEN EARMARKED FOR SAID PURPOSE.
AND THOUGH IT'S A GREAT PURPOSE WITHIN THAT DEPARTMENT AND WOULD EVEN HELP THAT DEPARTMENT MEET SPECIFIC GOALS AND WEIGH AGAINST THE OVERALL SORT OF PUBLIC PRIORITIES, WE NEED TO BE ABLE TO SHIFT THIS, YOU KNOW, QUARTER OF A MILLION DOLLARS OVER TO THAT PROJECT.
SO I JUST, LAST TIME AND I WAS TOTALLY NEW TO THE PROCESS, IT WAS A LITTLE HARD TO IDENTIFY KIND OF WHERE THOSE WERE AT IN EACH DEPARTMENT THAT WERE MORE, UM, UH, LESS DIRECTED BY COUNCIL AND MORE JUST GOOD PLANNING I GUESS, IF THAT SENSE.
WELL, ONE OF THE DIFFICULTIES, UM, SPECIFICALLY WITH THE GENERAL FUND IS THAT WE, WE LOOK AT THE JOURNAL FUND IS ONE BIG GIANT POT IN A WAY.
AND THE RESERVES, THAT 10% IS FOR THAT POT OF DEPARTMENTS OR THAT GROUPING.
UM, IT'S A LITTLE BIT MORE EASY TO SEE THOSE NUMBERS WHENEVER YOU GET INTO SPECIAL REVENUES AND ENTERPRISE FUNDS OR THE INTERNAL, WELL REALLY NOT THE INTERNAL SERVICE FUNDS.
THEY REALLY SHOULDN'T HAVE FUND BALANCE.
UM, BUT WE CAN BREAK THAT OUT ROUGHLY AS TO WHAT IS, WHAT SHOULD BE ALLOCATED DOWN.
THE ONLY THING IS, IS WHENEVER YOU START USING FUND BALANCE, YOU'RE NOT TAKING IT AWAY.
YOU'RE NOT, UM, FOCUSING THAT ON ANY GIVEN DEPARTMENT OR TAKING IT AWAY FROM THEIR, THEIR SPECIFIC POT OF MONEY.
UM, THAT'S USUALLY BECAUSE WHENEVER YOU HAVE TO DIP INTO ANY KIND OF, UM, RESTRICTED RESERVE FOR THE GENERAL FUND, IT'S, IT'S USUALLY NOT PROJECT RELATED.
IT'S USUALLY EMERGENCY RELATED IN ANY GIVEN REASON.
UM, ANY GIVEN PURPOSE? UH, I DON'T KNOW IF I'M QUITE NO, THAT'S GOOD ANSWER YOUR QUESTION, BUT I, I'M, YEAH, I'M JUST CURIOUS ON THAT.
AND DO WE HAVE ANYTHING OUTSIDE OF THE HOSPITAL PHONE THAT YOU'RE AWARE OF THAT BY THE WILL OF THE PEOPLE COULD BE LIKE TAPPED OR SAY WE WANNA DO X PROJECT? THAT'S THE ONLY ONE I'VE EVER FOUND THAT IT'S SET ASIDE FOR SPECIFIC PURPOSE UNLESS THE CORPUS IS DECIDED BY THE PEOPLE THAT THEY WANT TO DO SOMETHING THAT THEY VOTE ON.
ANYTHING ELSE LIKE THAT THAT YOU KNOW OF? NOT THAT I'M AWARE OF.
UM, KATHY, ARE YOU AWARE OF ANY JUST THAT PARK? YEAH, WE ALSO HAVE THE FER PARK.
I WAS, I WAS HOPING THEY'D BE NUTS SMART, BUT I DIDN'T
[00:35:01]
THINK THERE WOULD BE.SO JARED, UM, AT THE BUDGET WORKSHOP, I THINK LAST YEAR, IT'S HARD TO BELIEVE, BUT UM, I THINK COUNCILMAN ROBBINS AND I WERE ASKING SPECIFICALLY FOR, 'CAUSE THERE IS, YES, WE WANT THE OVERALL GENERAL FUND, UM, UH, SAVINGS ACCOUNT, SO TO SPEAK, RESERVE FUND, BUT THERE ARE INDIVIDUAL DEPARTMENTS THAT HAVE PLUS THAT.
AND UM, AND, AND I KNOW WE'VE ASKED FOR THAT INFORMATION AND SO AS WHAT I'M HEARING YOU DESCRIBE IS WE'RE GOING TO HAVE THAT INFORMATION.
I DON'T THINK I QUITE, I'D HAVE TO GO BACK AND SEE EXACTLY WHAT WAS INDIVIDUAL DEPARTMENTS HAVE SOME RESERVE FUNDS AND THAT IS OVER AND ABOVE THE 10% SAVINGS ACCOUNT FOR THE GENERAL FUND.
AND WE HAVE BEEN ASKING TO SEE WHO HAS FUNDS IN RESERVE THAT THEY HAVE NOT SPENT THE $2 OUT OF THE $10 THAT THEY'RE PUTTING OVER HERE.
LIKE, AND I THINK TO COUNCILMAN RUM, WE NEED TO KNOW LIKE, IS IT A RESTRICTED USE, IS IT NOT, IS BY DEPARTMENT, HOW MUCH IS THERE? UM, AND IT SOUNDS LIKE FROM WHAT, WHAT THE CITY MANAGER HAS SAID AND FROM ONE ONE OF THOSE SLIDES WE'RE, WE'RE TRYING TO GET OUR HANDS AROUND SOME OF THAT SO THAT WE CAN, THAT'S WHERE THAT TEAM, I DON'T KNOW WHERE IT WAS.
YOU KNOW WHAT I'M TALKING ABOUT.
MM-HMM
SO THAT'S WHERE, YOU KNOW, I'M SITTING HERE THINKING ABOUT THAT AND LISTENING TO YOU TALK AND I'M LIKE, WE ASKED FOR THAT A YEAR AGO AND I THINK I ASKED FOR IT BEFORE THAT.
SO, UM, I'M HEARING SOME MORE.
I KNOW YOU'VE BEEN DOING A LOT OF WORK, BUT I JUST KIND OF WANNA SAY IT AGAIN.
I WANT TO KNOW BY DEPARTMENT WHAT IS IN RESERVE AND IF IT IS RESTRICTED OR NOT RESTRICTED.
UM, BECAUSE I THINK WE'VE GOT TO LOOK AT THE OVERALL WHOLE, I THINK TO, TO COUNCILMAN ROBIN'S POINT, YOU KNOW, SOME OF THESE FUNDS MAYBE NEED TO BE REDIRECTED FOR A DIFFERENT PURPOSE, ESPECIALLY GIVEN A LIEN BUDGET YEAR.
AND YOU ALSO IN THAT POINT, I WOULD SAY YOU WOULD NEED TO UNDERSTAND WHY THAT DEPARTMENT DOES HAVE A RESERVE.
NO MATTER HOW LARGE OR SMALL IT IS.
UM, WHAT IS THERE, WHY IN THE, IN THE, IN THE BUSINESS MODEL ASPECT? MM-HMM.
SOME OF THE DEPARTMENTS COULD BE TO, UH, PURCHASE VEHICLES WHEN THEY CAN INSTEAD OF WHEN THEY'RE AVAILABLE, RATHER THAN WAITING FOR WHEN THEY NEED THEM, SINCE IT'S SO HARD TO PURCHASE THINGS NOWADAYS.
SO I MEAN, THAT'S COMPLETELY UNDERSTANDABLE TO HAVE THAT RESERVED FOR THAT, BUT CORRECT.
KNOWING WHAT THEY'RE, FOR THEIR WISES.
WE SHOULD BE ABLE TO ACCOMPLISH THAT THIS YEAR.
I ASKED FOR THAT IN AN EMAIL JUST NOW, BUT 15 MINUTES BEFORE THAT WAS REQUESTED.
SO IF YOU, WHEN COULD YOU GET THAT TO US FOR NEXT YEAR'S BUDGET? THAT I'D HAVE TO GO BACK AND LOOK AND SEE WHAT, WHERE WE ARE WITH EVERYTHING.
UM, I DON'T WANNA GIVE YOU A, A TIMEFRAME NOW AND HAVE TO GO BACK ON THAT.
UM, NEXT YEAR'S BUDGET WE'RE, ONCE WE GET THROUGH THE MAJORITY OF THE MEETINGS, WE'LL HAVE A BETTER GRASP.
BUT I MEAN, RIGHT NOW THERE'S RESERVE FUNDS FOR THE DEPARTMENTS AND WE WANNA KNOW WELL HOW MUCH AND FOR WHAT PURPOSE IF THEY'RE RESTRICTED, NOT RESTRICTED AND, BUT NOT, YEAH.
I MEAN, IT'S NOT RELATED TO NEXT YEAR'S BUDGET NECESSARILY THOUGH.
I THINK WE ALL NEED THAT INFORMATION TO GO INTO THE BUDGET SEASON.
A LITTLE CLARIFICATION, ARE YOU TALKING ABOUT LIKE SOLID WASTE AND THOSE YEAH.
'CAUSE THERE, YOU KNOW, THERE IS THE, THE SHEET IN EACH BUDGET BOOK THAT DOES SHOW THOSE, BUT YOU WANNA KNOW WHAT'S RESTRICTED.
IS THAT REALLY WHAT YOU'RE ASKING? 'CAUSE WE DO HAVE THE FUND BALANCES.
I WANNA KNOW THE FUND BALANCES FOR DEPARTMENTS AND WHAT THEY'RE FOR IF THEY'RE RESTRICTED OR NOT RESTRICTED.
UM, BECAUSE THERE IS I THINK SOME, I DON'T KNOW IF YOU CALLED THEM ACORN HOARDING OR WHATEVER, YOU KNOW WHAT I MEAN? MM-HMM.
UM, AND, AND, AND I, AND I'M A LITTLE BIT FRUSTRATED JUST BECAUSE I HAVE ASKED FOR THIS AT LEAST TWICE BEFORE.
WELL, BECAUSE, AND IT SEEMS TO JUST SORT OF GET SORT OF IGNORED.
I KNOW THAT'S BEEN A QUESTION FOR A COUPLE YEARS AND, AND THAT DOES STAND ON ITS OWN AND WE, WE CERTAINLY DO NEED TO SPLIT THAT OUT.
WE MORE LIKE DESIGNATED RESTRICTED THE DIFFERENT TYPES.
PLANNING ON THE OTHER HAND IS IN GENERAL FUND, SO IT DOES NOT HAVE ITS OWN.
ARE YOU THINKING LIKE THAT OR IS IT MORE THE ONES THAT WE KNOW? WE
[00:40:01]
DID HAVE, YOU KNOW, A TRUE FUND BALANCE THAT FOLLOW THAT DEPARTMENT, YOU KNOW WHAT I MEAN? YEAH.I MEAN THERE ARE DEPARTMENTS THAT HAVE RESERVE FUNDS, SO IT'S OKAY.
SO YOU ARE REALLY WANTING TO KNOW, WE NEED TO HAVE THAT SPLIT OUT, EACH ONE OF THOSE SPLIT OUT AND WHAT IT'S USED FOR.
HOW MUCH TOTAL, HOW MUCH IS RESTRICTED FOR WHAT PURPOSE, HOW MUCH IS NOT.
AND YEAH, I MEAN I THINK SO, SO YOU'RE AND CITY MANAGER, YOU'RE FOLLOWING ME, RIGHT? YEAH.
SO WHAT, SO FOR EXAMPLE, HEY OUR EDMOND ELECTRIC, THEY HAVE THEIR OWN RESERVE FUND.
HEY, SOLID WASTE WATER, WASTE WATER, MM-HMM.
THOSE SPECIAL OR ENTERPRISE FUNDS, RIGHT? FOR SOME OF OUR PROJECTS GENERAL FUND, THERE'S GONNA BE THE GENERAL 10% FUND BALANCE, WHAT WE'RE TALK WHAT YOU'RE TALKING ABOUT.
SORRY, I DON'T MEAN TO POINT NO, PLEASE.
UH, IS FINDING THOSE ACORNS, BRINGING THOSE FORWARD AND SAYING, HEY, ARE WE GOING TO DISTRIBUTE THOSE DIFFERENTLY THAN WHAT WE HAD IN THE PAST? AM AM I FOLLOWING YOU CORRECTLY? MM-HMM.
ALL I'M GONNA SAY, KEEP SAYING UNDERSTAND THE WHY, BECAUSE I DON'T WANT THAT TO BE LOST IN UNDERSTANDING WHY SOME OF THE DEPARTMENTS FROM THEIR RISK MANAGEMENT OR WHATEVER IT IS, RIGHT? MM-HMM.
UH, WELL 'CAUSE BUT I MEAN AGAIN, GENERAL FUND WIDE AND, AND THE CRAWFORD AND ASSOCIATES AND THE OTHER GROUPS THAT COME INTO FINANCE COMMITTEE, I MEAN, WE DO NEED TO HAVE A CERTAIN AMOUNT SET ASIDE IN CASE WE HAVE SOME SORT OF DISASTER.
UM, BUT I THINK HISTORICALLY IN ADDITION TO THAT, PEOPLE HAVE, INDIVIDUAL DEPARTMENTS HAVE HAD OTHER RESERVE THAT ARE SOMETIMES FOR THE SAME PURPOSE AS WHAT THE RESERVES FOR THE GENERAL FUND ARE.
UM, AND SO GETTING OUR ARMS AROUND THAT ON THE SOFTWARE PIECE, I THINK THAT'S GONNA BE A HUGE YEAH.
SO IF WE'RE ABLE TO PULL SOMETHING UP, THE CHALLENGE THAT I SEE ON THAT IS IF IT COMES UP AND WE LOOK AT IT IN APRIL, THE LAST, AND I WASN'T HERE FOR THIS, BUT 2021, I KNOW COUNCIL, UM, AUTHORIZED AND PAID FOR THE LICENSING AND, AND THE IT, UM, UH, DASHBOARD ON THE UTILITY SERVICES SIDE FOR THAT DASHBOARD.
UH, I'VE BEEN TOLD IT'LL BE Q1 WHEN THAT'LL COME ONLINE, BUT I WON'T BE ABLE TO SUPPORT ANOTHER SOFTWARE, BIG PACKAGE APPLICATION UNTIL THE FIRST ONE THAT WAS PAID FOR IS LIKE WORKING AND UP.
AND SO, UM, THAT ONE AS MY UNDERSTANDING WAS APPROVED BY A ACCOUNTS ON 2021 AND WE'RE STILL LOOKING TO GO LIVE THREE YEARS LATER.
SO WE'LL HAVE TO FIGURE OUT WHAT LESSONS WE LEARNED FROM THAT OR WHAT IT SYSTEMS WE NEED TO ADDRESS OR DO WHATEVER.
SO THAT WAY WE CAN, BEFORE WE EMBARK ON ANOTHER, UM, BIG ASK FOR A SOFTWARE UNIFICATION PACKAGE.
UM, TO THE, THE RESERVES AND THE RESTRICTED, UNRESTRICTED, ALL OF THAT, UM, SHOULD BE ABLE TO GET YOU SOMETHING AS OF 6 30, 23 SURE.
UM, WE ALREADY HAVE OUR, OUR FUND BALANCE ANALYSIS.
BASICALLY ONCE THROUGH THE AUDIT PROCESS WE, THEY ACCOUNTING GOES THROUGH AND GETS THE FUND BALANCE FOR EVERY SINGLE FUND.
UM, THEN ONCE THEY DO THEIR WORK, UM, I TAKE IT OR ANOTHER ANALYST WILL TAKE IT AND WE WORK THROUGH SEPARATING EVERYTHING OUT AND GETTING IT TO A CASH BASIS ON THE FUNDS SO THAT YOU ACTUALLY SEE THOSE RESERVES.
AND THAT'S WHAT WE USE IN OUR MODELING, IN OUR SPREADSHEETS.
SO I SHOULD I, I'LL BE ABLE TO SHOW YOU THAT AND SEND THAT OUT TO YOU, UM, TO SPECIFICALLY LINE, LINE OUT WHAT THE DESIGNATIONS ARE.
SOME OF THOSE I MIGHT HAVE TO REACH OUT TO DEPARTMENTS AND GET THAT INFORMATION, BUT ULTIMATELY I SHOULD BE ABLE TO GET SOMETHING TO YOU.
THAT IS AS OF THE END OF LAST FISCAL YEAR.
THE REASON WHY IT'S A LITTLE BIT TRICKIER TO GET AS OF RIGHT NOW IS THAT IT TAKES A LOT OF, UM, THERE'S A LOT OF GUESSWORK THAT GOES INTO NAILING DOWN THE EXACT NUMBER OF, OF WHAT WE HAVE AVAILABLE BECAUSE OBVIOUSLY WE STILL HAVE SEVERAL MONTHS LEFT IN THIS BUDGET YEAR.
SO WE DON'T KNOW WHAT OF THE BUDGET WILL BE SPENT AND WHAT WILL NOT BE SPENT.
WE CAN GIVE YOU A, A ROUGH DRAFT OR WHERE WE EXPECT TO BE, BUT UM, I WOULDN'T BE ABLE TO GET YOU ANYTHING REALLY FIRM UNTIL ROUGHLY THE END OF APRIL WHENEVER IT COMES TO WHERE WE STAND AT THAT POINT IN TIME.
AT LEAST IF WE KNOW END OF THE LAST PHYSICAL YEAR.
WHAT WAS IN THE RESERVE IN WHAT DEPARTMENT FOR WHAT PURPOSES AND UM, YEAH.
SO WHEN ARE YOU GONNA GET THAT? I, END OF APRIL, SORRY, END OF THIS WEEK.
UH, FOR AS OF THE END OF LAST FISCAL YEAR,
[00:45:03]
I MEAN IT'S RELEVANT I THINK AS WE LOOK AT BUDGET AND ALLOCATIONS AND ESPECIALLY IF THERE ARE REQUESTS, UM, BUDGET REQUESTS FOR DIFFERENT DEPARTMENTS AND WE KNOW THAT THERE ARE SOME FUNDS IN RESERVE THAT COULD BE PUT TOWARDS THAT PURPOSE.AND THROUGH THE PAST YEARS THAT HAS, THEY'VE USED THEIR RESERVES.
SOME OF THESE ACCOUNTS HAVE SOMETIMES MM-HMM.
SO, AND SOMETIMES THERE'S ASKS AND THERE'S RESERVES THERE.
AND TO THE MAYOR'S POINT, EVERYTHING AS FAR AS THE WHY, THAT'S SUPER IMPORTANT.
AND THEN THERE'S ALWAYS A DOMINO EFFECT.
SO FOR EXAMPLE, IF WE SAY, MAN, WE HAVE A LOT OF NEEDS AND SO WE WANNA FULLY FUND CLARK, WELL WE KNOW IN DOING THAT, THAT MIGHT IMPACT SOMETHING ELSE.
OR I MIGHT SAY, YOU KNOW, AS I TALKED TO LIKE HOW DO WE, YOU KNOW, RECRUIT AND, AND RETAIN THE GREATEST EMPLOYEES AND CONTINUE TO ADD ON THESE BENEFITS.
SO WE SHRUNK THE, THE PAY SCALES, WE DID THE MATERNITY AND PATERNITY LEAVE AND THE FOSTER CARE LEAVE.
WHAT IF WE LOOKED AT DOING, YOU KNOW, CHILDCARE CREDIT OR A CENTER OR SOMETHING, IT WAS LIKE, THAT MIGHT, I MIGHT THINK THAT'S THE BIGGEST THING SINCE, YOU KNOW, SLICED BREAD OR SOMETHING.
BUT COMPARED TO EVERYTHING ELSE, I MIGHT HAVE TO SAY, UH, NO, IT'S, WE ACTUALLY HAVE A CAPITAL NEED HERE OR WE HAVE SOMETHING THERE OR, SO IT HELPS US DECIDE TOO.
AND IT JUST MIGHT RING ME IN A LITTLE BIT ON SOME OF THE IDEAS THAT I HAVE, KNOWING WHAT ALL'S OUT THERE.
CAN I CALL THIS WORKSHOP COMPLETE? WE'RE GONNA HAVE A WORKSHOP FROM NOW FOR THE NEXT EIGHT WEEKS.
SO DO WE THINK THEY'RE GONNA ALL START AT THIS TIME, THREE 30 OR JUST DEPENDS ON BASICALLY THE, THE, THE SUBJECT MATTER.
IF IT'S SOMETHING DIFFERENT, WE'LL LET YOU KNOW.
HAVING SAID THAT, THANK YOU ALLALL THIS WORKSHOP'S OVER.