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[1. Call to Order of the Edmond City Council Meeting.]
I DUNNO IF IT'S ON.JUST BANG THE GAVEL REAL HARD.
YOU THERE? GOOD AFTERNOON EVERYONE.
I'D LIKE TO WELCOME YOU ALL TO OUR SPECIAL MEETING TODAY, WHERE WE'RE GONNA LOOK AT SALES TAX, SALES TAX AND ECONOMIC OUTLOOK, DE CART RECOMMENDATIONS, FINANCIAL OUTLOOK, CITY COUNCIL BUDGET, MUNICIPAL COURT BUDGET, ADMINISTRATIVE SUPPORT SERVICES, DEPARTMENT BUDGETS AND USES OF ONE-TIME FUNDING TODAY.
[2. Presentation and Discussion of City of Edmond Sales Tax and Economic Outlook Report by Dr. Russell Evans.]
HONORABLE CITY MANAGER.UM, BACK IN THE SPRING, WE'VE BEEN LOOKING AT OUR BUDGET AND PREPARING, NOT JUST FOR THIS COMING YEAR TO, TO LOOK OUT A FEW YEARS AHEAD.
WE REACHED OUT TO SOME OF OUR NEIGHBORING CITIES TO SEE HOW THEY FORECAST REVENUE PROJECTIONS, AND THEY TALKED ABOUT THIS INDIVIDUAL NAMED RUSSELL EVANS.
SO WE REACHED OUT TO MR. EVANS AND ASKED IF HE COULD COME TALK TO US.
AND THEN ULTIMATELY WE CAME TO COUNSEL AND SAID WE'D LIKE TO, UH, ENTERTAIN, UH, HIM TO TAKE THIS FIRST YEAR LOOKING AT REVENUE FORECAST FOR THE CITY OF EDMOND.
WE'RE GONNA INVITE MR. EVANS UP HERE TO DISCUSS WHAT HE HAS FOUND IN SOME OF HIS RECOMMENDATIONS OR, OR PRECAUTIONS OR OUTLOOKS.
OKAY, WELL FIRST OF ALL, THANK YOU FOR THE INVITATION.
I REALLY, UH, I APPRECIATE THE OPPORTUNITY TO COME AND, AND SHARE A FEW THOUGHTS ON THE ECONOMY, UH, WHAT WE SEE HAPPENING NATIONALLY AND, AND MAYBE HERE IN, UH, IN OKLAHOMA AND MAYBE, AND THEN A LITTLE BIT ON, UH, HOW IT IMPACTS, UH, EDMOND IN PARTICULAR.
UM, AGAIN, I I VERY MUCH APPRECIATE THE INVITATION.
WE JUST ACKNOWLEDGE, YOU KNOW, WE, WE WORK WITH SEVERAL CITIES AND PROVIDING THIS SORT OF, UH, SERVICE AS SORT OF COMMENTARY ON ECONOMIC CONDITIONS.
AND I JUST WANNA EMPHASIZE THAT REALLY WE VIEW OUR ROLE NOT AS, UM, ENDORSING OR, OR ADVOCATING FOR POLICY OR PROPOSITIONS, BUT MORE IN JUST TRYING TO FEED INFORMATION INTO THE DECISION MAKING PROCESS.
AND SO, HOPEFULLY, YOU KNOW, WHAT YOU THINK ABOUT TODAY, MAYBE THE CORRECT LENS TO SEE THIS THROUGH IS TO SEE IT AS A CONVERSATION AND COMMENTARY, A LITTLE BIT OF DATA.
IT MAY HELP INFORM A DECISION MAKING PROCESS, REALLY NOT MEANT TO, UH, OVERWRITE A DECISION MAKING PROCESS SO MUCH AS JUST INFORM AND COMPLIMENTARY TO IT.
SO LET ME START WITH, UH, LEMME START WITH JUST, UH, WHERE WE ARE NATIONALLY.
AND SO THE WORD THAT WE'RE GONNA HEAR NATIONALLY RIGHT NOW IS A SOFT LANDING.
THE FEDERAL RESERVE IS TRYING TO ORCHESTRATE A SOFT LANDING.
WE'RE GONNA HEAR THE WORD SOFT LANDING OVER AND OVER AND OVER AGAIN.
AND WE THINK ABOUT AN ELEMENT OF A SOFT LANDING.
A SOFT LANDING HAS TO BE HARD ENOUGH THAT IT STRESSES THE SOURCES OF INFLATION, CONSUMER MARKETS AND LABOR MARKETS WITHOUT BEING SO HARD THAT IT CAUSES A RECESSION.
AND SO THIS IS THE TRICKY BALANCE THAT THE FEDERAL RESERVE IS TRYING TO, UH, TRYING TO TAILOR RIGHT NOW, IS HOW DO WE STRESS ECONOMIC CONDITIONS JUST ENOUGH? HOW DO WE STRESS CONSUMERS JUST ENOUGH THAT IT REALLY CURTAILS SOME OF THEIR SPINNING PATTERNS THAT ARE GENERATING INFLATIONARY PRESSURES? HOW DO WE STRESS LABOR MARKETS JUST ENOUGH SO THAT IT DISCOURAGES SOME OF THE WAGE INFLATIONARY PRESSURES WITHOUT CAUSING, UH, AN OUTRIGHT RECESSION? AND SO AS YOU ORDER 2024, YOU'RE GONNA HEAR LOTS OF COMMENTARY ABOUT, UH, ABOUT A SOFT LANDING.
AND HERE'S HOW A SOFT LANDING IS PROGRESSING SO FAR.
WHEN YOU LOOK AT HOUSEHOLD BALANCE SHEETS, AND YOU KIND OF LOOK AT THE, THE BLUE LINE THERE ON BOTTOM, THESE ARE DELINQUENCY RATES ON CREDIT CARDS.
YOU GOTTA REMEMBER THAT HOUSEHOLDS RIGHT NOW ARE WALKING AROUND WITH ABOUT 1.1, $1.2 TRILLION IN CREDIT CARD DEBT AT AN AVERAGE INTEREST RATE OF ABOUT 22.5%.
AND DELINQUENCY RATES ON THOSE CREDIT CARDS ARE ABOUT 3.1 UH, PERCENT RIGHT NOW.
AND WHEN YOU LOOK AT THAT BLUE LINE, THAT TRAJECTORY OF THE BLUE LINE IS WHAT'S CONCERNING, RIGHT? IT'S, IT'S HOW RAPID DELINQUENCY RATES HAVE INCREASED.
WE'RE REALLY SEEING DELINQUENCY RATES REALLY BEGAN AT REGIONAL BANK ISSUED CREDIT CARDS AND HAVE NOW SPREAD TO A BIG BANK ISSUED CREDIT CARDS.
WE SEE DELINQUENCY RATES RISING ON AUTO LOANS, BUT THE DELINQUENCY RATE THAT YOU SEE AT 3.1% IS ACTUALLY SORT OF IN THE RANGE OF WHAT MIGHT BE CONSIDERED NORMAL IN NORMAL USUAL ECONOMIC CONDITIONS.
AND SO IT'S NOT THE LEVEL OF THE THREE, IT'S NOT THE DELINQUENCY RATE ITSELF THAT'S CONCERNING.
IT'S THE TRAJECTORY WITH WHICH IT WENT FROM SIGNIFICANTLY BELOW NORMAL BACK TO NORMAL OVER VERY COMPRESSED TIMEFRAME.
THERE'S BEEN A REPORT OUT JUST, UH, THIS WEEK OR END OF LAST WEEK.
UM, IT LOOKS LIKE THE RATE AT WHICH DELINQUENCIES ARE INCREASING IS SLOWING DOWN A LITTLE BIT.
SO I THINK THAT'S GENERAL, GENERALLY GOOD NEWS.
BUT, UH, THE POINT OF THIS, THIS FIRST SLIDE IS THAT HOUSEHOLD BALANCE SHEETS ARE VERY, UH, STRESSED RIGHT NOW.
STRESS TO THE POINT OF ANY UN UH, UNEXPECTED INCREASE IN UNEMPLOYMENT, ANY FURTHER STRESSES, HOUSEHOLD BALANCE SHEETS, REALLY GONNA CURTAIL, CONSTRAINED, UH, CONSUMER BEHAVIOR.
AND YOU SEE THAT IN RETAIL SALES.
AND SO RETAIL SALES ARE BEGINNING TO NORMALIZE.
UH, WE KEEP SEEING A COUPLE MONTHS OF, OF SOFTER RETAIL SALES ACTIVITY.
AND THEN YOU'LL GET, LIKE IN THE END OF LAST YEAR, 23, YOU SORT OF GET THIS, THIS BOUNCE BACK YEAR.
AND IN THE SUMMER OF 23, AND THEN AGAIN IN THE FALL OF 23, AND THEN AGAIN IN THE HOLIDAYS, YOU OF 23, WE KEPT TELLING OURSELVES, OKAY, THIS IS THE LAST HURRAH OF THE US CONSUMER.
THIS IS THE CONSUMER SAYING, OKAY, THIS IS THE LAST THING, THIS IS THE LAST LITTLE BIT THAT I CAN CONSUME, REALLY EXTENDING THEMSELVES AS, AS FAR AS THEY CAN GO.
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SALES, UH, NORMALIZING.AND SO YOU DO GET INDICATIONS THAT THE US CONSUMER IS, UH, IS BEGINNING TO FILL THE PINCH OF POLICY, AND THAT THOSE CONSUMPTION PATTERNS ARE BEGINNING TO SOFTEN FROM THE EXAGGERATED LEVELS THAT THEY WERE, UH, DURING THE PANDEMIC.
AND YOU LOOK AT THE LABOR MARKET AND THE, THE BLUE LINE THERE ON TOP SHOWS THE RATE AT WHICH PEOPLE ARE WILLING TO QUIT THEIR JOBS.
IN THE MIDDLE OF THE PANDEMIC, PEOPLE WERE REALLY RETHINKING LIFE.
THEY WERE RETHINKING ATTACHMENTS TO THEIR EMPLOYER.
THEY WERE RETHINKING, UH, THE RATE AT WHICH, THE PACE AT WHICH THEY WERE GOING THROUGH THE END OF THEIR WORKING LIVES.
AND YOU HAD WHAT WE CALL THE GREAT RESIGNATION, RIGHT? THIS REALLY INCREASE IN PEOPLE SEPARATING THEMSELVES FROM THEIR JOBS AND THAT GREAT RESIGNATION PERIOD HAS PASSED.
AND SO YOU LOOK AT THE BLUE LINE ON TOP NOW, AND YOU CAN SEE THE RATE AT WHICH PEOPLE ARE WILLING TO, UH, LEAVE THEIR JOBS REALLY, UH, COMING DOWN.
THE RATE AT WHICH SOMEBODY'S WILLING TO LEAVE A JOB REALLY HAS A LOT TO DO WITH THE EXPECTED DURATION OF FINDING A NEW JOB.
AND SO AS, UH, AS THE DURATION TO FIND A NEW JOB GOES UP, THE RATE AT WHICH I'M WILLING TO LEAVE MY JOB GOES DOWN.
YOU ALSO SEE THE NUMBER OF JOB OPENINGS FOR UNEMPLOYED PERSON COMING DOWN TO MORE REASONABLE LEVELS, ALL OF WHICH SUGGEST THAT THE LABOR MARKET IS COOLING AS WELL.
SO THE HEADLINE, UH, THE HEADLINE, UH, ECONOMIC DATA, UH, THE UNEMPLOYMENT RATE STILL, UH, LOOKS, UH, LOW BY HISTORICAL MEASURES, BUT THERE'S LOTS OF INDICATIONS THAT THE, THAT THE LABOR MARKET, UH, THAT THE LABOR MARKET IS COOLING.
AND SO WHERE DOES THAT LEAVE YOU THEN START THINKING ABOUT SORT OF NATIONALLY, WHERE ARE YOU? YOU'RE AT THIS, YOU GOT THIS POINT IN TIME RIGHT NOW WHERE THE ECONOMIC DATA'S COMING IN, IN JUST THE LAST FOUR TO SIX WEEKS.
I WOULD SAY THE ECONOMIC DATA'S COMING IN.
I FAST FORWARDED JUST A COUPLE SLIDES HERE IN THE INTEREST OF TIME, BUT THE ECONOMIC DATA'S COMING IN A LITTLE WEAKER THAN ANTICIPATED, BUT INFLATION NUMBERS ARE COMING IN A LITTLE STRONGER THAN ANTICIPATED.
AND SO THIS PUTS THE FEDERAL RESERVE IN A DIFFICULT SITUATION.
THEY ARE TRYING TO CREATE ENOUGH STRESS IN THE ECONOMY TO BEND SOME FUNDAMENTAL BEHAVIORS TO MAKE US A LITTLE LESS WILLING TO GO AND SPEND AND TO MAKE US A LITTLE LESS WILLING TO GO AND HIRE OR TO BID UP WAGES AS WE SEEK FOR EMPLOYEES.
AND SO THEY'RE TRYING TO COOL THE CONSUMER MARKET AND TRYING TO CON AND COOL THE LABOR MARKET.
AND THE DATA THAT'S COMING IN SUGGESTS THAT THOSE MARKETS FUNDAMENTALLY ECONOMIC ACTIVITY IS SOFTENING AND SOFTENING A LITTLE QUICKER THAN THEY WOULD HAVE ANTICIPATED.
BUT AT THE SAME TIME, INFL INFLATION NUMBERS ARE COMING IN A LITTLE HOTTER THAN ANTICIPATED, SUGGEST THAT INFLATION IS A LITTLE MORE PERSISTENT THAN THEY WOULD'VE WANTED.
AND SO IT PUTS THE FEDERAL RESERVE IN THIS DIFFICULT POSITION OF TRYING TO FIGURE OUT WHERE DO WE GO WITH POLICY? ARE WE IN A POSITION WHERE WE CAN SORT OF TAKE THE CONSTRAINTS OFF A LITTLE BIT AND LOOSEN THE ECONOMIC CONSTRAINTS SORT OF BEFORE RECESSION HAPPENS, BEFORE WE HAVE WEAKER ECONOMIC CONDITIONS DEVELOP? BUT WE REALLY CAN'T DO THAT UNTIL WE'RE CERTAIN THAT WE HAVE INFLATION UNDER CONTROL.
AND SO JUST IN THE LAST, THE, THESE SLIDES ARE A LITTLE OLD, BUT JUST IN THE LAST FOUR OR SIX WEEKS, WE'VE SEEN THIS, THIS NARRATIVE DEVELOP.
AND SO WHEN YOU LOOK AT, THESE ARE TWO DIFFERENT, THESE ARE NOT OUR EXPECTATIONS, THESE ARE TWO DIFFERENT NATIONAL BODY EXPECTATIONS OF, UH, WHEN WE MIGHT SEE INTEREST RATE CUTS.
AND WE WENT FROM EXPECTING FOUR OR FIVE INTEREST RATE CUTS BEGINNING IN THE FIRST HALF OF 2024.
AND YOU SORT OF SEE THESE, THESE CHARTS HERE, AND YOU CAN SEE THAT THE NATIONAL ASSOCIATION FOR BUSINESS ECONOMICS EXPECTED ABOUT THREE CUTS BEGINNING, REALLY IN THE SECOND HALF OF THE YEAR.
AND IF YOU LOOK AT WHERE WE'RE AT NOW, THE EXPECTATION NOW IS MAYBE TWO CUTS, AND THOSE TWO CUTS COMING AT THE END OF THIS YEAR, AND MAYBE TWO INTEREST RATES CUTS BECOME JUST, JUST ONE CUT.
AND SO YOU'RE IN A SITUATION AS, AS YOU, IF YOU THINK ABOUT GOING INTO YOUR NEXT FISCAL YEAR, YOU'RE IN A SITUATION WHERE YOU ARE FACING NATIONALLY AND LOCALLY ECONOMIC ACTIVITY THAT'S WEAKENING JUST A LITTLE BIT NON RECESSIONARY, BUT ECONOMIC ACTIVITY IS WEAKENING.
AND THE FEDERAL RESERVE, THE PRINCIPAL POLICY MAKER IN CHARGE OF BEING ABLE TO INFLUENCE E ECONOMIC CONDITIONS, BEING IN A POSITION WHERE THEY CAN'T REALLY EASE ECONOMIC CONDITIONS, THEY CAN'T REALLY, UH, STIMULATE A LITTLE BIT OF ECONOMIC ACTIVITY BY CUTTING INTEREST RATES UNTIL THEY'RE CONVINCED THAT INFLATION IS UNDER CONTROL.
AND SO YOU HAVE THE HAWKS AND THE DOVES ON THE FEDERAL RESERVE POLICYMAKING BOARD RIGHT NOW.
EVERYBODY'S IN AGREEMENT THAT WE'RE KIND OF IN A WAIT AND SEE MODE, REGARDLESS OF WHICH WAY YOU'RE LEANING IN YOUR INDIVIDUAL VOTE.
THESE MEMBERS, THESE 19 MEMBERS ARE ALL SORT OF IN A WAIT AND SEE MODE TO SEE WHERE THE NEXT DATA POINTS COME IN.
BUT THIS IS KIND OF A WAY TO MAYBE THINK THE, AGAIN, THESE ARE SOME NATIONAL, RESPECTED NATIONAL GROUPS.
YOU CAN THINK ABOUT WHERE DO WE SEE THE US ECONOMY GOING? WE SEE IT SLOWING THROUGH 2024, SO MAYBE ONE TO 1.5% GROWTH IN 2024, THE UNEMPLOYMENT RATE COMING UP JUST A LITTLE BIT.
AND SO SOME NATIONAL GROUPS, THE KIND OF THE MOST RESPECTED NATIONAL GROUPS, SO UNEMPLOYMENT RATE COMES UP, BUT NOT, NOT TREMENDOUSLY.
SO NOT LIKE YOU WOULD SEE IN A RECESSION.
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REALLY FORECASTING A RECESSION YET.THE FEDERAL FUNDS RATE IS THE ONE THAT'S REALLY CHANGED THE MOST TO THINKING, OKAY, WELL MAYBE IN THE BACK HALF, IN THE THIRD AND FOURTH QUARTER OF THIS YEAR, MAYBE YOU GET TWO INTEREST RATE CUTS, BUT PROBABLY NOT UNTIL SEPTEMBER, MAYBE SEPTEMBER AND DECEMBER MEETINGS, YOU'RE PROBABLY HAVING TO WAIT A LITTLE BIT BEFORE YOU SEE ANY INTEREST RATE REPRIEVE.
WE'LL GET SOME INFLATION READINGS JUST THIS WEEK IN THE DATA, CORE INFLATION COMING DOWN SLOWLY, BUT SORT OF MOVING BACK TOWARDS THAT 2% TARGET.
SO THAT'S THE NATIONAL BACKDROP THAT YOU FIND YOURSELF IN ECONOMIC CONDITIONS THAT ARE NON RECESSIONARY, BUT WEAKENING, BUT WEAKENING AT A PACE THAT'S NOT REALLY MOVING INFLATION BACK TO 2%, LEAVING POLICY MAKERS IN A BIT OF A BIND AS TO WHEN THEY CAN MOVE AND BEGIN TO EASE INTEREST RATES, UH, JUST A LITTLE BIT.
SO LET'S TRANSITION AND MAYBE TALK A LITTLE BIT ABOUT, UH, WHAT'S HAPPENING MORE, UH, MORE LOCALLY.
UM, AND AGAIN, I'M GONNA SKIP OVER A FEW SLIDES IN YOUR PACKETS, SO AS YOU CAN SORT OF LOOK AT ALL THE SLIDES HERE.
BUT IN THE INTEREST OF TIME, UM, I WANNA MENTION ONE THING THAT, UH, I WANNA TALK ABOUT.
IF YOU LOOK AT THIS MAP OF THE UNITED STATES, THAT'S EVERY MAJOR CITY, EVERY MAJOR METROPOLITAN AREA IN THE UNITED STATES, THAT'S EVERY MSA METROPOLITAN STATISTICAL AREA IN THE UNITED STATES.
AND WHEN YOU LOOK AT THIS MAP EVERYWHERE, YOU SEE THE, THE NAVY BLUE, LET ME START WITH THE YELLOW.
EVERYWHERE YOU SEE SORT OF THAT MUSTARD, YELLOW AND THE ORANGE, THOSE ARE METROPOLITAN AREAS THAT OVER THE LAST 20 YEARS HAVE EITHER LOST POPULATION OR ARE GROWING AT ALMOST NO POPULATION GROWTH.
VERY, VERY SLOW POPULATION GROWTH.
ON THE OTHER HAND, EVERYWHERE YOU SEE THE NAVY BLUE AND THE TEAL, THOSE ARE METROPOLITAN AREAS THAT ARE GROWING POPULATION WISE, EXPERIENCING POPULATION GROWTH.
THAT IS TRANSFORMATIVE POPULATION GROWTH.
AT EVERY GENERATION, A GENERATION A HALF IS DOUBLING THE POPULATION INSIDE THOSE METRO AREAS.
AND WHEN YOU LOOK AT THAT, WHEN YOU LOOK AT THE MAP, WHAT YOU SEE IS, UH, YOU SEE THESE AREAS THAT ARE PREDOMINANTLY IN THE SOUTH AND THE WEST, IN THESE NAVY BLUE, UH, AND THESE TILL CENTERS EXPERIENCING THE FASTEST, UH, POPULATION GROWTH.
SO PEOPLE IN ECONOMIC ACTIVITY ARE GENERALLY MOVING SOUTH AND WEST, AND AS THEY MOVE SOUTH AND WEST, THEY ARE GENERALLY LOOKING FOR URBAN CENTERS THAT OFFER AN AMENITY COMPLEX THAT COMPLIMENTS WHAT THEY'RE TRYING TO ACCOMPLISH IN LIFE.
AND WE ALWAYS THINK, WE OFTEN THINK ABOUT AMENITIES AS BEING TRANSPORTATION, RECREATION, EDUCATION, SORT OF THE THREE PILLARS OF A CITY'S AMENITY BASKET, TRANSPORTATION, EDUCATION, RECREATION.
AND SO YOU SORT OF THINK ABOUT LIKE THE, THE, THE HOW PEOPLE ARE MOVING ACROSS THE UNITED STATES.
THERE'S KIND OF THIS MYTH THAT IN A FLAT WORLD WHERE PEOPLE IN ECONOMIC ACTIVITY ARE MOBILE, THAT I SHOULD END UP WITH AN EA DISPERSION, AN EVEN DISPERSION OF PEOPLE IN ECONOMIC ACTIVITY ACROSS THE MAP.
WHAT I END UP WITH, SAME WITH THE POCKETS OF PEOPLE IN ECONOMIC ACTIVITY AND AREAS THAT ARE REALLY MISSING, UH, PEOPLE IN ECONOMIC ACTIVITY.
AND WHEN YOU LOOK ACROSS, UH, WHEN YOU LOOK ACROSS THOSE METROPOLITAN AREAS, YOU KNOW, THE, THE, THE WAY I ALWAYS EXPLAIN, ALWAYS SAY, WELL, IF I'M TALLER THAN YOU AND I'M GROWING FASTER THAN YOU, THEN I'M JUST GETTING MORE TALLER THAN YOU.
AND WHEN YOU LOOK AT THAT MAP, WHAT YOU HAVE TO REMIND YOURSELF IS THAT YOU HAVE AREAS ON THAT MAP THAT ARE BIGGER METROPOLITAN AREAS, RIGHT? DALLAS IS BIGGER THAN OKLAHOMA CITY, AND DALLAS IS GROWING FASTER THAN OKLAHOMA CITY.
SO DALLAS IS JUST GETTING MORE BIGGER THAN THE OKLAHOMA CITY METRO AREA.
OKLAHOMA'S BIGGER THAN KANSAS POPULATION WISE, AND OKLAHOMA'S GROWING FASTER THAN KANSAS.
OKLAHOMA'S POPULATION IS JUST GETTING MORE BIGGER RELATIVE TO KANSAS.
AND SO YOU SORT OF THINK THESE ARE LONG RUN FORCES OF GEOGRAPHY.
AND SO YOU SORT OF THINK ABOUT, IF YOU THINK ABOUT YOUR LONG RUN, YOU CAN THINK ABOUT THESE FORCES OF GEOGRAPHY RESHAPING THE MAP OF ECONOMIC ACTIVITY AROUND YOU.
WHEN YOU LOOK INSIDE OKLAHOMA, UH, OKLAHOMA IS NOT PARTICULARLY URBANIZED WHEN YOU LOOK AT THE, I WOULD JUST FOCUS ON THE GREEN LINE ON THE BOTTOM, THE METRO POPULATION SHARE.
THIS IS THE SHARE OF THE OKLAHOMA POPULATION INSIDE THE COUNTIES THAT MAKE UP THE OKLAHOMA CITY, MSA, THE COUNTIES THAT MAKE UP THE TULSA MSA IN COMANCHE COUNTY, WHICH IS LAWTON.
AND SO IT'S 16 OR 17 OF OUR 77 COUNTIES ARE REPRESENTED HERE.
AND THESE 16 COUNTIES OUT OF THE 77, THEY NOW ACCOUNT FOR 67.8% OF THE STATE'S POPULATION.
AND SO JUST THOSE COUNTIES INSIDE THE OKLAHOMA CITY AND THE TULSA MSA AND COMANCHE COUNTY MAKE UP 67.8% OF THE STATE'S POPULATION.
THE REST OF THE STATE, UH, HAS THE REMAINDER OF THE POPULATION.
AS PEOPLE MOVE SOUTH AND WEST, THEY'RE, THEY'RE MOVING INTO THESE, UH, THESE POCKETS OF, UH, URBAN AMENITIES.
AND WHAT THIS MEANS FOR OKLAHOMA AND FOR A CITY LIKE EDMOND, IS THAT OKLAHOMA IS ACTUALLY MUCH LESS URBANIZED THAN OUR SURROUNDING STATES.
SO THESE PATTERNS OF URBANIZATION ARE, ARE REALLY NEW TO OKLAHOMA.
WE'RE MUCH LESS URBANIZED THAN TEXAS OR COLORADO OR LOUISIANA, OR EVEN TENNESSEE OR
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MISSOURI.AND SO THESE PATTERNS OF URBANIZATION, OKLAHOMA, ARE RELATIVELY NEW TO US.
AND SO EDMOND CONTINUES TO FIND ITSELF INSIDE A, A FAST-GROWING METROPOLITAN AREA ALONG THE I 35 CORRIDOR, AND B, TO FIND ITSELF IN AN, IN A STATE THAT IS EARLY IN ITS URBANIZATION PROCESS AS PEOPLE IN ECONOMIC ACTIVITY LOOK FOR CITIES AND AREAS WITHIN CITIES, UH, TO LOCATE IN AND LIVE.
UM, BEFORE WE TURN TO EDMOND PARTICULAR, THE LAST THING I'LL JUST SAY IS EDMOND ALSO FINDS ITSELF IN AN MSA, THE OKLAHOMA CITY.
MSA IS A LITTLE YOUNGER ON AVERAGE THAN THE NATIONAL, UH, THE DISTRIBUTION, THE AGE DISTRIBUTION NATIONALLY.
AND SO THAT'S MAYBE A FAVORABLE FINDING FOR THE MSA, UH, PARTICULARLY AS YOU THINK ABOUT, YOU KNOW, LABOR SUPPLY AND LABOR POOL.
THESE GRAY BARS KIND OF REPRESENT OUR PRIME WORKING AGED YEAR, PRIME WORKING AGED INDIVIDUALS.
WELL, THE GENERATION RIGHT BEHIND THEM, THE OKLAHOMA CITY MSA IS SORT OF SKEWS YOUNGER, WHICH MEANS WE HAVE, UH, TOMORROW'S WORKFORCE KIND OF IN OUR BACK POCKET IF WE CAN JUST FIND A WAY TO TRAIN THEM AND RETAIN THEM HERE IN THE MSA.
FOR PLACES LIKE EDMOND LOOKING TO GROW AND LOOKING TO GROW, UH, YOU KNOW, MAYBE A A A A COMMERCE BASE, WE HAVE IN THE MSA, UH, A LATENT POOL OF TOMORROW'S LABOR SUPPLY AVAILABLE.
SO THAT'S SORT OF THE, THE, THE BIG PICTURE BACKDROP, RIGHT? SO START WITH THE NATIONAL CONVERSATION.
ECONOMIC CONDITIONS ARE WEAKENING, BUT NOT ENOUGH TO REALLY BRING INFLATION TO WHERE THE POLICYMAKERS NEED IT.
POLICYMAKERS IN A BIND TRYING TO FIGURE OUT WHEN AND HOW MUCH CAN WE CUT INTEREST RATES.
OKLAHOMA, AT THE OKLAHOMA LEVEL, WE'RE EARLY IN OUR URBANIZATION, WE'RE ON THIS I 35 CORRIDOR, PEOPLE ARE MOVING SOUTH AND WEST, AND THEY'RE LOOKING FOR THESE, THESE, THESE URBAN POCKETS, UH, UH, THAT OFFER THESE, THESE AMENITIES.
AND SO ZOOMING IN THEN ON MOND AND LOOKING AT A FEW, UH, A FEW ADMIN REALITIES, UH, THINGS THAT, THAT MAY BE SELF-EVIDENT TO THOSE WHO HAVE BEEN IN AND AROUND EDMOND FOR A LONG TIME.
I'VE, I'VE LIVED IN EDMOND FOR MANY, MANY YEARS.
UM, BUT, UH, BUT NONETHELESS, MAYBE SOME OF THESE THINGS STOOD OUT TO US AS WE BEGAN TO THINK ABOUT YOUR SALES TAX IN PARTICULAR.
SO EDWIN SKEWS TOWARDS THE, UH, HIGH INCOME, UH, TOWARDS THE HIGH INCOME, UM, ADJUSTING FOR INFLATION.
MEDIAN HOUSEHOLD INCOME HAS GROWN FROM 2010 TO 2022, FROM ABOUT 90,000 TO ABOUT A HUNDRED, $3,000 IS OUR MEDIAN HOUSEHOLD INCOME, UH, INSIDE EDMOND.
AND YOU CAN SEE THAT IT'S SKEWED JUST A LITTLE BIT THAT WAY.
UH, IN THE LAST, UH, IN THE LAST 10 YEARS, UM, THE SHARE OF OWNER OCCUPIED HOUSING UNITS HAS INCREASED FROM ABOUT 69% OWNER OCCUPIED HOUSING IN 2010 TO ABOUT 73% OWNER OCCUPIED, UH, IN 20, UH, IN 2022.
UM, AND I'LL, I'LL, I'LL LEAVE IT AT THAT, SOME ADDITIONAL COMMENTS, BUT WE'LL, WE'LL LEAVE IT THERE FOR NOW.
WHEN YOU LOOK AT, UH, EDMOND WORKFORCE, THIS IS, THIS WAS INTERESTING TO US AS WELL.
THE TOP BAR LOOKS AT STARTS FROM PERSPECTIVE OF KIND OF A CENSUS OF PEOPLE WHO WORK THE JOBS IN EDMOND, PEOPLE WHO WORK IN EDMOND.
AND WHEN YOU LOOK AT PEOPLE WHO, UH, ARE EMPLOYED THAT WORK IN EDMOND, BUT LIVE OUTSIDE, IT'S ABOUT THREE FOURTHS NOW, FROM 2004, 2021, ABOUT THREE FOURTHS OF THE JOBS THAT ARE FILLED INSIDE EDMOND ARE FILLED WITH PEOPLE WHO DON'T LIVE IN EDMOND.
THEY'RE COMMUTING IN TO GO TO WORK, RIGHT? AND SO IF YOU LOOK AT PEOPLE WHO WORK IN EDMOND, ABOUT 75% WORK IN EDMOND, BUT LIVE OUTSIDE OF EDMOND, ABOUT 25% LIVE AND WORK IN EDMOND.
ON THE OTHER HAND, IF YOU LOOK AT PEOPLE WHO LIVE IN EDMOND, IF YOU START FROM THAT PERSPECTIVE, A CENSUS OF PEOPLE WHO LIVE IN EDMOND, ABOUT 75% OF THOSE PEOPLE LIVE IN EDMOND, BUT ARE EMPLOYED OUTSIDE OF EDMOND.
THEY GET UP AND THEY DRIVE TO WORK EVERY MORNING.
AND ABOUT 25% OF THE PEOPLE WHO LIVE IN EDMOND WORK IN EDMOND.
SO THERE'S KIND OF, THERE'S KIND OF TWO POPULATION BASES FOR YOU TO THINK ABOUT, RIGHT? YOU HAVE A POPULATION THAT LIVES HERE, SPENDS HERE, RECREATES HERE, NIGHTS AND WEEKENDS, BUT DRIVES EVERY DAY TO GO TO WORK.
AND YOU HAVE ANOTHER POPULATION THAT DOESN'T LIVE HERE, BUT COMES IN AND MAYBE SPENDS A BIG CHUNK OF THE WORK WEEK OR THEIR WORK WEEK HERE IN, IN, IN EDMOND EVERY DAY, WHICH I THINK ALSO CREATES SOME INTERESTING, MAYBE CHALLENGES, BUT ALSO SOME INTERESTING OPPORTUNITIES.
YOU THINK ABOUT THIS, THESE SORT OF, THESE DUAL POPULATIONS THAT COME, UH, IN AND OUT OF EDMOND EDMOND JOBS ARE HEAVILY CONCENTRATED IN SERVICE SECTORS WITH, UH, SECTORS LIKE RETAIL TRADE, EDUCATIONAL SERVICES, ACCOMMODATION, FOOD SERVICES, AND HEALTH SERVICES COMBINED TO ACCOUNT FOR ABOUT, UH, 56% OF ALL JOBS.
SO, UM, AND SO TEND TO BE, UH, JOBS TEND TO BE SERVICES CENTRIC HERE, UH, IN EDMOND, WHEN YOU LOOK AT THE INFLATION ADJUSTED SALES TAX BASE, I THINK THIS IS, UH, AS WE THOUGHT ABOUT LONG RUN, UH, THINKING ABOUT YOUR LONG RUN, TRYING TO ESTABLISH OUR BASELINE THOUGHT.
'CAUSE ANYTIME, WELL, LET ME FINISH THIS THOUGHT AND THEN I'LL TELL YOU ABOUT YOUR SHORT RUN FORECAST ADMIN POPULATION CHANGE.
HERE'S YOUR POPULATION GROWTH GOING BACK 2010 TO 11.
AND SO YOU CAN SORT OF SEE THESE IN THE, UH, SORT OF, UH, END OF THE FIRST DECADE STARTED OF THE SECOND DECADE.
UM, 1.5%, TWO POINT A HALF PERCENT, 1.8% POPULATION GROWTH.
BUT IT'S REALLY SLOWED IN HERE TO ONE POINT A HALF, 0.7 AND ONE.
SO POPULATION GROWTH INTO SEEMS TO BE SLOWING.
AND WHEN YOU LOOK AT THAT POPULATION GROWTH SLOWING A LITTLE BIT, YOU CAN ALSO LOOK AT THE INFLATION
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ADJUSTED SALES TAX BASE PER PERSON AND PER HOUSEHOLD UNIT.AND SO WE CAN TAKE YOUR, YOUR SALES TAX AND, AND BACK OUT INTO THE AMOUNT OF TAXABLE ACTIVITY THAT WAS, THAT'S GENERATED THERE AND COMPARE IT ON A PER PERSON AND PER HOUSEHOLD UNIT.
AND A PER HOUSEHOLD UNIT HERE, IT'S ABOUT $60,000 OF TAXABLE ACTIVITY.
SO EACH HOUSEHOLD IS GENERATED ABOUT $60,000 WORTH OF TAXABLE SALES TAXABLE ACTIVITY IN 2010.
IT'S ABOUT 63, APPROACHING 64,000 IN 2022, BUT NOT A LOT OF CHANGE BETWEEN 2016 AND 2022.
SAME THING, UH, REAL, UH, INFLATION ADJUSTED, UH, UM, UH, SALES TAX BASE PER PERSON.
I THINK FOR US, THIS LEADS US TO A CONCLUSION WHERE WE'RE SORT OF ANCHORING OUR THOUGHT PROCESS.
WE'RE BRAND NEW TO YOUR DATA AND WE'RE BRAND NEW TO TRY TO MATCHING MODELS THAT MATCH ECONOMIC REALITIES TO YOUR REALITY.
AND, AND SO, BUT AS WE LOOK AT THIS, WE'RE SORT OF THINKING THAT IN THE, IN THE LONG RUN, EDMOND'S LONG RUN INFLATION ADJUSTED SALES TAX BASE IS GROWING AT ABOUT 1.6% PER YEAR, THE RATE OF HOUSEHOLD GROWTH.
AND SO 1.6% PER YEAR PLUS THE RATE OF INFLATION, WHICH TELLS US IN A NORMAL ECONOMIC YEAR, ABSENT ANY SHORT RUN CYCLE, SHORT RUN EXAGGERATIONS, EITHER POSITIVE OR NEGATIVE, RIGHT? ANY SHORT RUN WE'RE REALLY IN A BOOM PERIOD OR WE'RE IN A RECESSION PERIOD.
THIS SORT OF A LONG RUN MIDDLE LINE TREND MIGHT BE SOMEWHERE AROUND THREE AND A HALF PERCENT PER YEAR.
1.6% ON HOUSEHOLD GROWTH PLUS INFLATION ON NOMINAL GROWTH OF A SALES TAX BASE MIGHT BE A WAY THAT WE WOULD, A LINE THAT WE INITIAL LINE WE WOULD DRAW IN THE SAND AS WE BEGIN TO SORT OF DIVE IN AND LOOK AT, UM, LOOK AT, UH, EDMOND'S FISCAL SITUATION.
AND SO LEMME JUST END WITH THIS.
I THINK THIS IS, UH, YOU KNOW, GIVEN THAT, THAT THIS IS A, UH, SALES TAX, UH, BUDGET WORKSHOP.
AND SO, UH, WHAT WE DID IS WE STARTED BY, AND AGAIN, I JUST WANT TO CAVEAT THIS WITH, WITH FORECASTING, ANY TIME SERIES DATA IS VERY DIFFICULT.
FORECASTING, UH, SALES TAX REVENUES CHALLENGING IN AND OF ITSELF, BUT THEN FORECASTING FOR THE FIRST TIME AND THEN COMING TO PRESENT IS PARTICULARLY RIGHT, ANXIETY INDUCING.
WE'VE BEEN DOING THIS WITH OKLAHOMA CITY SINCE ABOUT 2009 OR 2010, AND YOU KIND OF GET A SENSE OF THE RIGHT MODEL SPECIFICATION THAT MATCHES THE, THE REALITY THAT'S GENERATING THE DATA IN OKLAHOMA CITY, BUT TO SORT OF HAVE ONE PASS AT IT AND NOT HAVE THE BENEFIT OF LEARNING FROM, FROM SOME CYCLES.
UM, I WOULD JUST, UH, UH, I THINK THERE'S VALUE IN THIS CONVERSATION, BUT I ALSO WOULD, UH, TREAT WITH JUST A LITTLE BIT OF, UH, A LITTLE BIT OF A CAVEAT.
SO WE BREAK IT UP INTO, INTO THESE SECTORS, RETAIL, HOTEL AND RESTAURANT AND OTHER, UH, RETAIL AND HOTEL, UM, UH, UH, RETAIL AND HOTEL RESTAURANTS REPRESENTS ABOUT 76% OF TAXABLE ACTIVITY IN EDMOND.
FOR WHAT IT'S WORTH, IT'S ABOUT 66% OF TAXABLE ACTIVITY IN OKLAHOMA CITY.
SO YOU'RE A LITTLE MORE RELIANT ON THOSE PRIMARY SALES TAX SECTORS THAN AS OKLAHOMA CITY.
BUT WE TOOK THE BASIC MODELS, THE SPECIFICATION WE RUN FOR OKLAHOMA CITY, UH, AND CREATED A DATA SET FOR REDMOND THAT SORT OF MATCHED THOSE MODEL SPECIFICATIONS AND RAN IT THROUGH THAT.
AGAIN, I WANT TO EMPHASIZE IT JUST TAKES TIME AND EXPERIENCE TO MATCH A MODEL SPECIFICATION TO THE DATA GENERATING ECONOMIC REALITY.
AND SO THIS IS A, THIS IS A LEARNING BY DOING EXERCISE FOR US.
AND SO WE WENT, WE WENT THROUGH THAT, THE INITIAL EXPECTATION YOU SEE DOWN HERE.
SO WE DID THIS, THIS, THE RUN IS A COUPLE MONTHS OLD NOW.
SO YOU'VE HAD A COUPLE OF SALES TAX CHECKS SINCE OUR FIRST RUN.
I THINK WE, I THINK WE DID THIS RIGHT BEFORE YOU GOT YOUR APRIL CHECK.
SO I THINK WE HAD DATA THROUGH THE MARCH CHECK, UH, BUT NO APRIL OR MAY CHECK.
AND THE INITIAL RUN HAD FISCAL YEAR 24 ENDING SOMEWHERE AROUND 0.4%.
AND SO PRETTY MUCH A FLAT FISCAL YEAR, 24 AND FISCAL YEAR 25 HAD GROWTH OF 2.7199999999999998%, BUT WITH ALMOST ALL OF THAT GROWTH COMING IN THE SECOND HALF OF THE YEAR, WHICH MAKES IT INCREDIBLY WORRISOME TO SORT OF, TO, THAT'S NOT GROWTH THAT YOU WOULD WANT TO, TO TAKE TO THE BANK AT THIS STAGE, GIVEN THE ECONOMIC UNCERTAINTIES THAT WE LAID OUT EARLY IN THE PRESENTATION.
AND GIVEN THAT THE MODEL ASSUMES THAT ALMOST ALL OF THIS GROWTH COMES IN THE SECOND HALF OF THE YEAR AFTER A REALLY ROUGH START TO THE FIRST HALF OF THE FISCAL YEAR.
BUT THIS IS SORT OF WHERE, WHERE THE NUMBERS, UH, WHERE THE, THE NUMBERS ON THE FIRST PASS CAME OUT IS A RELATIVELY FLAT FISCAL YEAR 24.
AND AGAIN, AT THE TIME THAT WE HAD THIS DATA, YOU WERE STILL MISSING YOUR APRIL, MAY, AND JUNE CHECK.
AND SO WE HAD, WE HAD, WE WERE MISSING THE LAST QUARTER OF YOUR FISCAL YEAR, BUT WE HAD IT SORT OF ENDING SOMEWHERE FLAT AND THEN A PRETTY DECENT MODEL SPECIFICATION FOR 2025 COMING AT 2.7%.
BUT AGAIN, ALL OF THAT GROWTH COMING IN THE SECOND HALF OF THE YEAR, SO VERY WORRISOME START TO THE YEAR, AND THEN MAYBE SOME GROWTH ON THE BACK HALF OF THE YEAR IF THE FEDERAL RESERVE CAN IN FACT ACHIEVE THE SOFT LANDING THAT WE TALKED ABOUT AT THE BEGINNING, THAT THEY'RE TRYING TO NAVIGATE, UH, VERY CAREFULLY, A LOT OF IFS.
SO THAT'S THE, THAT'S THE, THE PRESENTATION.
I'D BE HAPPY TO, TO VISIT FOR A MOMENT AND, AND TAKE A QUESTION OR TWO OR, OR, BUT AGAIN, JUST WE'RE, WE'RE JUST TRYING TO FEED INFORMATION INTO A
[00:25:01]
DECISION MAKING PROCESS, NOT WANTING TO OVERWRITE ANYBODY'S EXPECTATIONS.UH, JUST TRYING TO, TO FACILITATE.
COUNSEL, QUESTIONS AFTER YOU THINK ABOUT IT FOR A SECOND? 'CAUSE DR. EVANS, IS THERE A PARTICULAR INDUSTRY? SO FOR EXAMPLE, YOU KNOW, I SEE A LOT OF OUR FOOD INDUSTRY, UH, SEEMS TO BE HAVING A ROUGH LAST NINE TO 12 MONTHS IN PARTICULAR, AND SOME TURNOVER AND SOME THINGS.
WHEN YOU LOOK AT A SALES DEPENDENT, UH, A CITY LIKE OURS, ARE THERE CERTAIN SECTORS WITHIN IT THAT ARE STRONGER OR, OR WEAKER THAT YOU'RE SEEING IN THE DATA AS FAR AS WHERE THE SALES TAX IS COMING FROM OR WHAT CITIES ARE INCENTIVIZING OR INVESTING IN? YEAH, I THINK, I THINK THAT'S A, THAT'S A GREAT QUESTION.
I THINK WHAT YOU'RE SEEING FOR THE MOST PART ACROSS THE EMPLOYMENT DATA, TRANSLATING INTO SOME OF THE SALES TAX DATA IS STILL THAT IT'S LEISURE AND HOSPITALITY SECTOR IN ITS HEALTHCARE.
THAT'S WHERE ALL THE JOBS ARE.
UM, AND SO YOU'RE SEEING A LOT OF THE JOBS STILL GOING INTO THOSE SECTORS.
AND I THINK THE LEISURE AND HOSPITALITY HAS ABOUT, UM, RIGHT SIZED ITSELF FROM THE REALLY DISRUPTION THAT CAME THROUGH THE PANDEMIC.
AND SO I THINK YOU'RE SEEING ON THE, LIKE ON THE FOOD SIDE LEISURE AND HOSPITALITY SIDE, OBVIOUSLY YOU SEE SOME STRENGTH THERE, BUT I THINK THAT STRENGTH IS, IS WANING JUST A LITTLE BIT.
ON THE OTHER HAND, WHEN YOU THINK ABOUT LIKE, WHERE ARE THE SALES TAX DOLLARS BEING GENERATED, UM, YOU KNOW, I THINK THE, THE, THE, THE BEST DATA FOR A CITY STILL COMES DOWN TO LOOKING AT SOME INDIVIDUAL REMITTERS, RIGHT? SO I DON'T GET TO SEE REMITTER LEVEL.
I'M SORRY, WHAT WAS THAT LAST PART YOU SAID? INDIVIDUAL REMITTERS.
AND SO I DON'T GET TO SEE INDIVIDUAL REMITTER LEVEL DATA, UM, BUT I KNOW IN, LIKE, IN THE, THE OTHER CITIES THAT WE WORK WITH OFTEN WE'LL LOOK AT INDIVIDUAL, LIKE A SPECIFIC STORE OR A SPECIFIC COMPANY, AND WE SORT OF LOOK AT THEIR INDIVIDUAL REMITTER AND WE REALLY, I CAN'T, I'M NOT PRIVY TO SEE IT, BUT A LOT OF TIMES YOU CAN KIND OF GET A SENSE FOR WHERE YOUR OVERALL SALES TAX COLLECTIONS ARE GOING.
BUT YOU HAVE A COUPLE BELLWETHER, UH, REMITTERS, SO I DON'T KNOW WHO YOUR BELLWETHER REMITTERS ARE, AND I DON'T REALLY KNOW WHAT, YOU KNOW, WHAT SECTORS IN TERMS OF SALES TAX ACTIVITY, UM, YOU KNOW, WOULD BE THE, YOU KNOW, I DON'T, I DON'T REALLY HAVE RECOMMENDATIONS ON, ON AREAS I WOULD LOOK TO LOOK FOR.
ANY QUESTIONS, COMMENTS? YES, SIR.
MR. EVANS, CAN YOU TALK ABOUT, YOU, YOU'VE DONE SOME WORK WITH OKLAHOMA CITY AND MAYBE SOME OTHER CITIES.
YOU'RE, YOU'RE SHOWING LIKE AT 2.72 HERE.
WHAT, WHAT DO YOU SEE ACROSS THE METRO? WHAT SOME OF THE OTHER CITIES ARE? YEAH, I MEAN, I DON'T, I DON'T THINK OKLAHOMA CITY WOULD MIND ME SAY, I THINK OKLAHOMA CITY, THEY'VE BUILT A BUDGET AROUND ONE POINT A HALF PERCENT GROWTH FOR FISCAL YEAR 25, WHICH IS KIND OF PUSHING THE UPPER END OF WHERE THEIR MODELS WE'RE AT.
AND THEN, SO WE'RE KIND OF PUSHED A LITTLE BIT.
UM, BUT THEY HAVE A BUNCH OF, UM, I THINK YOU GUYS CALL 'EM VACANCY SAVINGS, RIGHT? THEY HAVE A BUNCH OF BUILT-IN SAVINGS ALREADY IN THE BUDGET.
AND SO THEY'RE SORT OF BUILT FOR 2025 A BUDGET AROUND, I WOULD SAY FLAT-ISH GROWTH ON PAPER, IT LOOKS LIKE A ONE AND A HALF PERCENT GROWTH, BUT THEY'VE GOT SOME SAVINGS BUILT INTO THAT, UM, THAT IF THE NUMBER DOESN'T MATERIALIZE, THEY HAVE SOME EASY STEPS THEY CAN TAKE TO, TO NOT HAVE TO REALLY TAKE, UM, UH, SIGNIFICANT CHANGES.
AND SO THAT'S WHAT WE SEE IN OKLAHOMA CITY.
AND, AND YOU KNOW, I I, AND I'M GLAD YOU ASKED THAT QUESTION, MAYBE WORKING WITH OKLAHOMA CITY FOR SO MANY YEARS ACROSS DIFFERENT ADMINISTRATIONS, WHAT I REALLY SEE OUR ROLE IS DOING IS REALLY TRYING TO HELP CITIES MANAGE THEIR BUDGET, MISS, RIGHT? YOU KNOW, YOU'RE GONNA MISS, YOU KNOW, THE FORECAST IS GONNA MISS AND, YOU KNOW, THE BUDGET'S GONNA MISS.
AND SO THE CHALLENGE IS HOW DO YOU MANAGE YOUR, HOW DO YOU MANAGE YOUR MISSES? AND SO WE'VE, WE'VE REALLY BEEN, I THINK OKLAHOMA CITY'S A GOOD EXAMPLE OF SAYING, OKAY, WELL WE'RE GONNA BUILD A BUDGET HERE, BUT WE'RE GONNA HAVE SOME THINGS IN OUR BACK POCKET AND WE'RE GONNA BE ABLE TO MANAGE WHATEVER THE MISSES WE'LL BE ABLE TO MANAGE THAT MISS.
AND THROUGH SOME, THROUGH SOME UNEXPECTED, YOU KNOW, SHIFTS IN ECONOMIC CONDITIONS, WE'VE ALWAYS BEEN ABLE TO SORT OF MANAGE THOSE MISSES A LITTLE BIT.
AND SO I THINK, YOU KNOW, AS YOU THINK ABOUT WHERE THIS INFORMATION FEEDS IN, AGAIN, YEAR 2.72 IS ON THE HIGH END, UM, AND ALL OF THAT, ALL OF THAT GROWTH ACCORDING TO THE MODEL IS IN THE SECOND HALF OF THE FISCAL YEAR.
UM, AND SO IT WOULD BE, UH, UM, UH, IT WOULD BE AWFULLY, I DUNNO WHAT THE RIGHT WORD IS, UH, TO SORT OF, TO SORT OF PRESS THAT A LITTLE BIT AND SORT OF HOPEFULLY THAT THAT GROWTH MATERIALIZES SO THAT YOU CAN, UH, YOU KNOW, BACK FULL OF BUDGET A LITTLE BIT.
UM, BUT I ALSO THINK IT'S ABOUT BUDGETING, USING THIS INFORMATION TO BUDGET IN A WAY THAT HELPS YOU GET MANAGEABLE MISSES.
'CAUSE YOU KNOW YOU'RE GONNA MISS GOING IN, EVERYBODY'S GONNA MISS EVERY YEAR.
IT'S ALL ABOUT MANAGING THE MISS.
WELL, AGAIN, THANK YOU SO MUCH.
I REALLY APPRECIATE THE INFORMATION.
[3. Presentation and Discussion of Fiscal Year 2024-25 Nonprofit Organization Requests as Recommended by the Community Agency Review Commission (CARC).]
[00:30:09]
SO NEXT WE'RE GONNA HAVE THE PRESENTATION AND DISCUSSION OF THE FISCAL YEAR 2024 NONPROFIT ORGANIZATIONS REQUEST AS RECOMMENDED BY THE COMMUNITY AGENCY REVIEW COMMISSION.UM, I'M NICK CHRISTY BATTERSON.
I'M THE STAFF LIAISON FOR THE COMMUNITY AGENCY REVIEW COMMISSION CLARK.
UM, I HAVE SEVERAL MEMBERS OF THE CLARK COMMISSION HERE AS WELL TO ANSWER ANY QUESTIONS, UM, THAT YOU MIGHT HAVE AS WE GO THROUGH THIS PRESENTATION.
UM, JUST A LITTLE BIT REMINDER OF WHO WE ARE.
UM, WE WERE, UM, OR THE AGENCY, THE COMMISSION, UM, WAS ESTABLISHED IN 1984 AND HAS HAD SEVERAL ORDINANCES UPDATES.
THE MOST RECENT ONE WAS IN DECEMBER OF 2023.
WE ARE A NINE MEMBER COMMITTEE.
UM, AND THEIR JOB IS TO REVIEW ANNUAL REQUESTS FROM COMMUNITY AND, UH, SOCIAL AGENCIES TO DETERMINE THE ACCOUNTABILITY OF THOSE AGENCIES AND THEN REPORT THE RECOMMENDATIONS TO YOU.
WE OPENED APPLICATIONS BACK AT THE END OF JANUARY FOR 30 DAYS, UM, LOCAL AGENCIES.
WE HAD OVER 21, UM, AGENCIES APPLY FOR FUNDING.
UM, WE THEN HELD OUR, UH, PUBLIC HEARING ON FEBRUARY 22ND.
AND, UM, THAT SAME EVENING AFTER PRESENTATIONS OF THOSE AGENCIES, THE, UH, COMMISSION, UM, REVIEWED AND MADE RECOMMENDATIONS THAT YOU'LL SEE HERE IN A FEW MINUTES ON WHAT, UH, FUNDING SHOULD BE ALLOCATED.
UM, AND THEN THAT MEMO WAS, UM, DISTRIBUTED TO CITY MANAGEMENT.
AND, UM, AND THEN WE'RE HERE TODAY.
KEY RECOMMENDATIONS FROM KARK.
UM, THE AWARDS ARE BASED ON 3% OF OUR SALES TAX COLLECTED FROM A PREVIOUS YEAR.
10% IS RESERVED FOR ADMINISTRATION COST TO MONITOR THEIR PROGRAM.
FUNDING IS USED FOR SOLELY FOR PROGRAMMING ONLY WITH A FEW EXCEPTIONS AND ELIGIBLE EXPENSES, OUR SALARIES, UH, BENEFITS, RENT, MORTGAGES, ET CETERA.
AND MOST CAPITAL IMPROVEMENTS.
UM, SERVICES MUST BE PROVIDED WITHIN THE CITY OF EDMOND.
AND RECOMMENDATIONS SHOULD CORRESPOND TO CITY COUNCIL'S STRATEGIC GOALS.
THIS IS ALL SET IN THE ORDINANCE, UH, CHANGES.
BACK IN DECEMBER, WE HAD 11 SOCIAL AGENCIES, UH, NO NEW AGENCIES WITH THE EXCEPTION OF ONE, AND I'LL TALK ABOUT THAT ONE IN JUST A FEW MINUTES.
UM, BUT EDMOND PUBLIC SCHOOL FOUNDATION, EDMOND FAMILY COUNSELING HOPE CENTER, EDMOND MOBILE MEALS MINISTRIES OF JESUS, PROJECT 66, FOSTERING SWEET DREAMS, TURNING POINT MINISTRIES, UR SPECIAL LILYFIELD AND PEACEFUL FAMILY SOLUTIONS.
OUR COMMUNITY ENRICHMENT WE'RE FINE.
ARTS INSTITUTE, EDMOND MUSEUM, EDMOND HISTORIC PRESERVATION TRUST, EDMUND ROUNDUP CLUB.
DISABLED SPORTS WERE THE ENDEAVOR GAMES.
YMCA COMMUNITY SUPPORT CHARACTER COUNCIL OF EDMUND, OKLAHOMA BAPTIST, BAPTIST HOME, AND EDMUND SOCCER CLUB.
HISTORICALLY TOP SOCCER, WHICH IS A NONPROFIT ORGANIZATION THAT RUNS WITHIN EDMOND SOCCER CLUB, IS USUALLY THE ONE THAT, UM, APPLIES FOR FUNDING THIS YEAR.
HOWEVER, IT WAS THE EDMOND SOCCER CLUB THAT CAME FORWARD AND NOT THE TOP SOCCER PROGRAM.
SO THAT WAS THE ANOMALY OF THIS YEAR.
OF THE 21 REQUESTS, IT WAS A LITTLE OVER $1.4 MILLION IN FUNDING REQUESTS.
UM, I'M NOT GONNA READ THROUGH ALL OF THEM THAT YOU'VE HAD IT IN YOUR PACKET.
UM, EDMOND MOBILE MEALS WAS THE ONLY SOCIAL AGENCY TO RE, UH, REQUEST ADDITIONAL FUNDING OR HIGHER FUNDING THAN THEY'VE HAD PREVIOUSLY.
AS YOU CAN SEE, THE REQUESTS WERE 817,500, AND THE CART COMMISSION CHOSE TO FUND 703,950 COMMUNITY ENRICHMENT.
UM, THERE WERE SEVERAL THAT ASKED FOR, UM, MORE FUNDING THAN THEY HAD IN PREVIOUS YEARS.
UM, HISTORICAL MUSEUM, THE EDMOND ROUNDUP CLUB COUNCIL CHARACTER OF, UH, EDMOND AND EDMOND SOCCER CLUB, UH, TOTAL REQUEST WAS 656,500 AND RECOMMENDATIONS FOR 550,500.
AGAIN, TOTAL APPLICANT FUNDING REQUESTS WAS 1.4, A LITTLE OVER 1.4 MILLION.
UM, BUT TOTAL RECOMMENDATION FROM MCCARRICK, UM, IS 1,254,450.
SO WE CAN GO BACK TO INDIVIDUALS IF THERE'S ANY QUESTIONS ON THE INDIVIDUAL REQUESTS, IF THERE'S ANY QUESTIONS ON THAT.
I JUST HAVE ONE QUESTION RIGHT NOW.
WITH THE 21 THERE, THAT THAT'S NOT AN INCREASE FROM LAST YEAR WITH 21 THAT NO, NO, NO.
THERE WAS 21 AGENCIES LAST YEAR.
THERE'S NO NEW THIS YEAR, WITH THE EXCEPTION OF EDMUND SOCCER CLUB JUST SWITCHED TO WAS APPLYING.
SO WE'VE HAD NO NEW AGENCIES THIS YEAR.
COUNSEL, YOU HAVE ANY QUESTIONS SO FAR? I DO.
MISS BATTER, UH, FOSTERING SWEET DREAMS FOUNDATION.
UH, THEY, THEY WENT FROM 20 TO 10.
[00:35:01]
UM, I CAN, KATHY LYNCH THE CHAIR, UH, CAN COME UP.UM, I DO KNOW FOR FOSTERING SWEET DREAMS, UM, THEY SERVE MORE THAN JUST OKLAHOMA COUNTY AND MORE THAN JUST EDMOND.
ONE OF THE THINGS THAT THEY, WE'VE ASKED OR REQUESTED SINCE THIS ED, THIS MONEY IS OUR SALES TAX DOLLARS, THAT THE DOLLARS BE SPENT INSIDE EDMOND CITY LIMITS.
THEY COULD NOT ACCOUNT FOR HOW MUCH OF THEIR DOLLARS COULD BE SPENT IN EDMOND CITY LIMITS, BUT I DON'T KNOW IF KATHY WANTS TO ADD ANYTHING MORE ONTO THAT.
THAT WAS PRIMARILY THEIR CONCERN, THEIR COMMENT ON THAT ONE.
AND I WANNA LET YOU KNOW, THE COMMISSION DELIBERATED FOR FOUR HOURS ON THESE AGENCIES.
UM, EACH ONE WAS INDIVIDUALLY, UM, DISCUSSED AND, UM, DISCUSSED LONG ON EACH OF THEM, AND EVERYTHING WAS TAKEN INTO CONSIDERATION WHEN THEY MADE THE RECOMMENDATIONS.
DO YOU MIND IF I ADD A COUPLE OF COMMENTS? GO, COME RIGHT AHEAD.
FIRST OF ALL, I WANTED TO SAY THANK YOU FOR YEAH, FOR, FOR, FOR THIS GOING THROUGH THIS PROCESS.
'CAUSE WE, IT'S, WE KNOW IT'S NOT EASY.
WELL, UM, ON BEHALF OF ALL OF THE COMMISSION MEMBERS, I, I'D LIKE TO EXPRESS OUR APPRECIATION FOR HAVING THE PRIVILEGE OF BEING INVOLVED IN THIS EFFORT.
UM, I HAVE BEEN INVOLVED SINCE, I THINK 2010 WAS THE, THE FIRST YEAR, SO ABOUT 14 YEARS.
AND, UM, I, I ALSO WANTED TO THANK, UH, THE COUNCIL FOR ADDING, UH, NEW MEMBERS TO THE COMMISSION.
UH, WE WERE DOWN, I THINK, TO ABOUT THREE LAST YEAR.
AND, UM, THIS IS A MUCH, UH, MORE DIFFICULT JOB WITH JUST THREE PEOPLE
UM, BUT WE HAD, I BELIEVE FOUR NEW MEMBERS ADDED THIS YEAR.
THEY ASKED GREAT QUESTIONS AND BROUGHT A VERY DIVERSE PERSPECTIVE.
SO I WOULD SAY THAT THIS WAS PROBABLY THE MOST IN DEPTH AND, UM, LIVELY DISCUSSION THAT WE'VE HAD ABOUT EACH OF THE AGENCIES, UM, IN A LONG TIME.
SO THE NEW MEMBERS CONTRIBUTED TO THAT.
UM, I'D ALSO SAY THAT, UH, THE AMOUNT THAT WE RECOMMENDED WAS THE MAXIMUM AMOUNT THAT WAS AVAILABLE TO US.
WE DIDN'T LEAVE ANYTHING ON THE TABLE.
I BELIEVE THAT'S THE FIRST TIME SINCE I'VE BEEN INVOLVED, THAT WE'VE SPENT, THAT WE'VE SPENT, THAT WE'VE RECOMMENDED SPENDING THE, THE MAXIMUM THAT THE COMMISSION HAS AVAILABLE TO ALLOCATE.
AND EVEN WITH THAT, IT WAS SIGNIFICANTLY LESS THAN THE TOTAL THAT OUR APPLICANTS REQUESTED THIS YEAR.
THAT IS ALSO THE FIRST TIME THAT THAT HAS HAPPENED.
WE'VE NEVER HAD SUCH A SIGNIFICANT DIFFERENCE BETWEEN WHAT APPLICANTS HAVE REQUESTED AND WHAT WE'VE BEEN ABLE TO GRANT.
SO THIS YEAR WAS A VERY DIFFICULT YEAR, UM, BECAUSE WE HAD TO TAKE EACH, UM, EACH ORGANIZATION AND THEIR REQUESTS AND, AND WE HAD TO SAY, SOME OF YOU ARE NOT GOING TO GET WHAT YOU'VE REQUESTED.
AND ON TOP OF THAT, SOME OF YOU MAY NOT GET THE FUNDING THAT YOU GOT LAST YEAR.
IT MAY, IT MAY HAVE TO BE DECREASED.
AND SO WE, WE LOOKED AT EACH ORGANIZATION, WE LOOKED AT, UM, THE ADDITIONAL GUIDANCE THAT WAS, UH, PROVIDED IN THE, UM, UH, THE, UH, RULES, OH, IN THE ORDINANCE.
THE ORDINANCE, THAT'S THE WORD I WAS LOOKING FOR IN THE ORDINANCE THAT WAS PASSED IN DECEMBER.
THERE WAS SOME NEW GUIDANCE FOR US.
SO WE TRIED TO STICK TO THE THINGS THAT, UM, THE COUNCIL HAD SAID WERE MOST IMPORTANT.
UM, WE TRIED TO PAY ATTENTION TO THINGS THAT MIGHT CREATE A DEPENDENCY ON THIS FUNDING.
AND, UM, WE, WE TRIED TO, UM, MAKE, MAKE EVEN MORE RECOMMENDATIONS THAN WE HAVE IN THE PAST, UM, TO ASK AGENCIES TO, UM, DEVELOP THEIR ABILITY TO RAISE FUNDING OUTSIDE OF CITY OF EDMOND GRANTS.
THERE ARE A NUMBER OF, OF THE ORGANIZATIONS THAT ARE HIGHLY DEPENDENT UPON THIS FUNDING.
AND AS WE CAN SEE, UM, THIS FUNDING MAY NOT BE AVAILABLE TO THEM EVERY YEAR.
AND SO WE REALLY NEED THEM ALL TO BE DEVELOPING, UM, FULLY DEVELOPING OTHER MECHANISMS FOR RAISING FUNDS.
NOW, HAVING SAID THAT, WE, UM, WE, WE FELT LIKE WE GOT TO, UM, A PLACE THAT BEST REPRESENTED, UM, WHAT WE HAD AVAILABLE, UM, AND THE COMMISSION'S PREFERENCES.
AND SO THAT'S WHAT WE'VE PRESENTED TO YOU.
I WOULD SAY WE LOVE EVERY AGENCY THAT IS INCLUDED IN THIS LIST.
AND I, I HAVE, FOR THOSE OF YOU WHO'VE HAD TO LISTEN TO ME FOR A NUMBER OF YEARS,
AND, UM, THIS IS ONE OF THE FEW CITIES THAT TAKES A SMALL PORTION OF ITS SALES TAX REVENUE, AND INVESTS
[00:40:01]
IN GRASSROOTS EFFORTS LED BY THE CITIZENS OF EDMOND.IT'S A VERY IMPORTANT PROGRAM.
UM, OUR, OUR CITY IS, UH, SEEN LESS AS A, UH, MAYBE HAS LESS BUREAUCRATIC TONES WHEN PEOPLE KNOW THAT WE DON'T JUST INVEST IN GOVERNMENT SERVICES.
WE INVEST IN THE PEOPLE OF EDMOND WHO ARE DOING GOOD THINGS IN EDMOND TOO.
SO I THINK IT'S A, UM, UH, PEOPLE THAT I HAVE TALKED TO IN OTHER COMMUNITIES, UM, THINK THAT THIS IS A PRETTY AMAZING THING THAT WE DO.
IT'S IT, AND THEY LOOK UPON US VERY POSITIVELY.
SO I, I HOPE THAT, UM, EVEN THOUGH I THINK THAT I HAVE, I'VE TERMED OUT THIS YEAR, I THINK I ROLL OFF THE COMMISSION THIS YEAR, I, I HOPE THAT ALL OF YOU WILL CONTINUE TO ADVOCATE FOR THE WORK OF THIS COMMISSION AND FOR IT TO CONTINUE TO BE A CITIZEN, UH, LED EFFORT.
UM, THERE IS A LOT OF EFFORT THAT'S PUT IN BY THE, THE PEOPLE WHO VOLUNTEER FOR THIS COMMISSION TO TRY TO MAKE THE BEST RECOMMENDATIONS THAT WE CAN.
SO THAT, THAT'S KIND OF WHERE WE, WHERE WE ENDED UP THIS YEAR.
I'D, I'D BE HAPPY TO ANSWER ANY ADDITIONAL, SPECIFIC QUESTIONS THAT YOU MIGHT HAVE.
I JUST HAVE A, UH, FROM THE PROCESS WE WENT THROUGH LAST YEAR, AND THEN WE CAME OUT WITH NEW GUIDANCE, UM, DID THE GUIDANCE HELP OR, OR, OR, OR, OR HURT THE, THE DECISION MAKING THIS YEAR? DID IT, DID IT GIVE ANY CLARITY? MM-HMM.
UM, I THINK LAST YEAR IN OUR, OUR LETTER, UM, WE HAD INCLUDED SOME RECOMMENDATIONS, UH, OF POTENTIAL GUIDANCE THAT COULD BE HELPFUL TO US.
AND YOU GUYS CAME THROUGH ON THAT, UM, IN DECEMBER.
AND SO I THINK IT WAS HELPFUL.
I'M NOT A MATHEMATICIAN, BUT THIS IS, UM, DIFFERENT NUMBERS FROM WHAT WAS REQUESTED.
AND SO, UM, I KNOW THAT WE ALL PROBABLY HAVE BEEN RECEIVING, UH, PHONE CALLS OR EMAILS OF, OF CONCERNS OR HAPPINESS OR JOY, BUT ANY OTHER QUESTIONS, CONCERNS ABOUT THE CAR AS IT IS PRESENTED TODAY? SO I THINK, UM, IT'D BE HARD TO FIGURE OUT A LONG, A LONG TERM SOLUTION BETWEEN NOW AND WHEN WE HAVE TO APPROVE THE BUDGET WITHIN A MONTH.
BUT WHEN I LOOK AT CARC, FIRST OF ALL, ECHO, EVERYTHING.
PROBABLY THE BEST PART OF BEING ON CITY COUNCIL NOW IS THE ABILITY TO GET IN AND VOLUNTEER AND GET TO KNOW THESE WONDERFUL NONPROFITS, COMMUNITY LEADERS AND, UH, VOLUNTEERS.
IT'S JUST, JUST OVERWHELMINGLY JUST POSITIVE TO BE A PART OF IT.
I THINK OUR COMMITMENT TO HELPING AND SUPPORTING THOSE, AS I LOOK AT IT, YOU KNOW, THERE'S, THERE'S TWO OR THREE ORGANIZATIONS WITHIN CLARK THAT HAVE BEEN GENERALLY FUNDED THROUGH CLARK, WHO, FOR A LACK OF A BETTER TERM, HAVE BEEN, UM, UM, LIKE THEY'RE A PART OF EDMOND IN A WAY THAT DIFFERENT, A DIFFERENT ONES ARE.
AND IT'S HARD WHEN YOU'RE, I I, YOU KNOW, I ATTENDED THE HEARING.
I'VE TALKED TO MANY OF YOU GUYS, AND IT'S TOUGH WHEN, YOU KNOW, YOU'RE LOOKING AT, WELL, SHOULD I DO THIS FOR A MUSEUM? OR THIS KID GETS A FOSTERED.
I MEAN, WHO WANTS TO MAKE
SO IT LOOKS LIKE THE TOTAL GAP IN REQUESTED FUNDING FROM THESE FINAL ORGANIZATIONS VERSUS WHAT WE'RE ABLE TO OFFER IS 219,500.
UM, I REALLY APPRECIATE THE CLARKS COMMITTEE AND THEIR DILIGENCE IN GOING THROUGH THE VOLUMINOUS DOCUMENTS, WHICH I'VE LOOKED AT, WHICH TAKE A LONG TIME TO, TO THUMB THROUGH.
UM, AND SO SOME OF THOSE REDUCTIONS I DEFINITELY AGREE WITH THAT I THINK ARE, WELL, WELL THOUGHT OUT, UH, FOR SOME OF 'EM.
AND THAT, UH, SOME OF THOSE, UH, TURN TO THESE SORT OF, UH, LONGSTANDING ADMIN CENTERED, UM, CREATED ORGANIZATIONS THAT HAVE A DIFFERENT RELATIONSHIP THAN SAY, A, A SPECIFIC SOCIAL NONPROFIT.
YOU KNOW, I KIND OF LOOK AT, UH, THREE DIFFERENT BUCKETS THAT WE COULD POTENTIALLY LOOK AT, UM, IF OTHERS, AS I DO WANT TO HELP FULLY FUND SOME OF THOSE REQUESTS, ONE OF THOSE COULD BE CI CITY COUNCIL HAS A HUNDRED THOUSAND CONSTITUENCY THAT WE HAVEN'T TAPPED INTO YET.
THAT'LL SORT OF ROLL, NOT EVEN ROLL OVER.
I THINK IT EXPIRES AT THE, YOU KNOW, WITH THE ADOPTION OF A NEW BUDGET, WHICH WOULD BE A HUNDRED THOUSAND ARPA FUNDS.
I'M NOT A HUNDRED PERCENT SURE WHERE THAT, WHERE THAT LANDS, BECAUSE I KNOW CITY MANAGERS TALKED ABOUT SOME POTENTIAL DIFFERENT APPLICATIONS OR SOME THINGS, BUT I KNOW WE HAVE TO COMMIT SOME OF THOSE FUNDS.
AND THEN THE COUNCIL, PREVIOUS TO ME JOINING OBVIOUSLY MADE A POLICY
[00:45:01]
DECISION, WHICH I SUPPORT, UH, TO, UM, IDENTIFY WHAT WE WERE GETTING ON OUR MARIJUANA TAX, USE THOSE FOR A PUBLIC HEALTH BENEFIT IN SOME WAY, SHAPE OR FORM.AND AGAIN, AS THE MERRILL POINT OUT, THAT'S NOT LIKE THERE'S NEW MONEY CREATED OUT OF THIN AIR.
UH, BUT THERE WAS A DESIRE AS THIS REVENUE DIRECTLY TIED TO MARIJUANA USE CAME INTO OUR CITY WITH VARIOUS IMPACTS, UH, THAT WE LOOK AT APPLYING IT IN SOME WAY, SHAPE, OR FORM.
UM, SO I WOULD BE OPEN TO A CONVERSATION OF, YOU KNOW, PUTTING OUR TOE IN THE WATER WITH SOME MARIJUANA, BUT KNOWING OUR FISCAL SITUATION, UH, MAYBE USING THAT IN A, IN A SMALL WAY, DEFINITELY LOOKING AT OUR CITY COUNCIL CONTINGENCY, UNDERSTANDING BETTER FROM MAYBE THE OTHER PRESENTATIONS OF THE DAY WHERE THE ARPA LANDS, IF THERE'S SOMETHING THERE.
AND THEN WITH SOME OF THESE, BEING ABLE TO GO THROUGH AND IDENTIFY, UM, PARTICULAR ONES THAT, UM, THAT, THAT WE MIGHT HAVE OTHER AREAS OF CITY FUNDING OR THAT WE WANNA SUPPORT.
AND THEN OTHER ONES THAT WE GENERALLY THINK, UH, YEAH, NEED TO BE REDUCED AT LEAST FOR THIS YEAR OR NEED TO ROLL OFF AT SOME POINT.
UH, SO THOSE ARE SOME QUESTIONS AND SOME COMMENTS AND SOME IDEAS, BUT I'M OPEN OBVIOUSLY TO THE MAYOR AND EVERYONE ON COUNCIL'S, UH, INPUT AND DISCUSSION TO FIGURE OUT HOW WE CAN GET THERE IF THAT'S WHERE PEOPLE WANT TO GO.
ONE, UH, UH, WHEN WE TAKE INTO CONSIDERATION WHAT THE CART COMMITTEE'S DONE, AND THEY COME UP WITH A RECOMMENDATION, AND, AND, AND I WANNA REEMPHASIZE TO THE CART COMMITTEE, WHATEVER DECISION THAT IS MADE UP HERE IS NOT TAKING YOUR DECISION.
LIKE, OKAY, THIS IS THESE FIVE, UM, INDIVIDUALS UP HERE, UM, WILL MOVE THINGS AROUND, UM, FOR THE BETTERMENT OF THE CITY.
SO WE'RE NOT, THERE'S NOTHING LIGHTED THERE.
UM, SO COUNCIL MEMBER S WHEN YOU TALK ABOUT, LET'S JUST START AT THE BOTTOM, GOING UP THE MARIJUANA TAX THERE, IT'S, THAT MONEY'S ALREADY IN OUR BUDGET, AND SO MOVING ANY HIGHLIGHTED MARIJUANA TAX MONEY OUT OF THE BUDGET AND MOVING IT OVER TO ANOTHER POCKET, IT'S, WE'RE ALREADY SPENDING THAT MONEY.
SO TO ME, UH, THAT'S NOT A, A VIABLE, UH, IF WE, IF WE, WE WANT, IF, IF THERE WAS A SUPPLEMENTAL THERE.
UM, I DON'T KNOW ABOUT WHERE WE ARE ON ARPA.
I KNOW WE'VE, WE'VE HAD A LOT OF DISCUSSION ABOUT ARPA, UM, IF, IF IT'S POSSIBLE OR NOT.
BUT THEN THE OTHER THING IS OUR CONTINGENCY FUND, I THOUGHT WE HAD 85,000 LEFT IN OUR CONTINGENCY FUND.
UM, BUT MAYBE MY MATH IS WRONG.
YOU TALKING CITY COUNCIL FUND? YES.
WE'LL GET CHRISTIE, I'M TALKING THE TWO BEHIND YOU.
I THINK WE HAVE USED A LITTLE BIT.
YEAH, I THOUGHT WE HAD USED A LITTLE BIT OF IT.
THERE MIGHT BE, I I DON'T RECALL, BUT THAT DOESN'T MEAN THAT, I MEAN, BUT STILL THERE WAS, IT'S STILL MM-HMM,
UM, THERE'S SOMEWHERE BETWEEN, WE CAN, BETWEEN PROBABLY A HUNDRED AND SO 80 AND A HUNDRED.
THE, THE QUESTION IS, YOU KNOW, TO CONTINUE THE CONVERSATION WITH THE COUNCIL IS, UM, WE'VE RELEASED, HEARD FROM ONE COUNCIL PERSON THAT THERE'S A DESIRE TO, I DON'T KNOW, FULLY FUND EVERYONE OR JUST, UH, OR TAKE A CERTAIN PERCENTAGE AND, AND BEEF UP SOME OF THEM TO, UH, WHATEVER THEY, BUT I KNOW, I REMEMBER SORT OF LAST YEAR'S CONVERSATION, IT WAS DEFINITELY MORE LIVELIER.
PEOPLE WERE COMING OUT OF THE SHOOT READY TO GIVE THEIR OPINION.
SO MAYOR, DID YOU WANT THIS DECISION FROM US TODAY? WELL, IT DIDN'T HAVE, I DON'T THINK IT, IT HAS TO BE TODAY, BUT I JUST THINK IT, YOU NEED TO, WE NEED TO THINK ABOUT IT.
UM, WELL, WHERE DO WE WANT TO GO? BECAUSE THE OTHER THING IS THAT I THINK WE NEED TO THINK ABOUT IS THE SAME TIME NEXT YEAR, WE'RE GONNA PROBABLY GO THROUGH THE SAME SCENARIO WHERE WE JUST HEARD FROM, UH, A FINANCIAL ANALYST FOR US THAT, YOU KNOW, SALES TAX OR OUR REVENUE GENERATORS ARE GOING DOWN, UH, THAT THE NEEDS OF THE, OUR SOCIAL AGENCIES AND OUR COMMUNITY ENRICHMENT AGENCIES, THOSE NEEDS ARE GOING UP.
AND THAT'S WHY I ASKED THE QUESTION ABOUT, THERE WAS JUST 21 BECAUSE I, I, I BECAME AWARE OF ANOTHER NONPROFIT THAT JUST CAME TO EDMOND THIS PAST WEEK OR SO, AND I'M LIKE, WELL PROBABLY SEE THEIR NAME COMING IN AS AN APPLICATION FOR IT.
UM, SO WELL, IT, IT, AND I FEEL A LITTLE BIT LIKE DEJA VU A LITTLE BIT, BUT, UM, FROM A YEAR AGO, I,
[00:50:01]
I MEAN, I, I THINK SOME OF THE, WELL, WE'VE GOT SOME SHORT, A SHORT TERM ISSUE, IS THIS DONE AND FINISHED, OR ARE WE GOING TO LOOK AT MAYBE THE CONTINGENCY FUND FOR THE COUNCIL TO TOP OFF OR ADD TWO, ONE OR MORE OF THESE? UM, BUT THEN I, I, YOU KNOW, I LOOK AT THAT WE'RE NOT SUPPOSED TO BE FUNDING, UM, SALARIES, BENEFITS, OPERATIONS, AND I, I THINK SOME OF THESE REQUESTS INCLUDE THOSE KINDS OF MATTERS, AND THAT COULD BE AN ISSUE.SO I THINK THERE NEEDS TO BE SERIOUS CONVERSATION WITH THOSE ORGANIZATIONS THAT THEY FIND, YOU KNOW, OTHER SOURCES, UM, OF FUNDING FOR THOSE TYPES OF MATTERS.
IF CARC ISN'T GONNA BE FUNDING THOSE, OR WE'RE GONNA JUST HAVE THIS SAME ISSUE EVERY YEAR.
UM, SO I THINK, I THINK WE NEED TO FIGURE THAT OUT.
UM, SO, BUT YOU KNOW, THERE ARE SOME ORGANIZATIONS IN HERE THAT I THINK RIGHT OR WRONG ARE COUNTING ON THESE FUNDS, AND WE NEED TO GIVE ENOUGH LEAD TIME IF THIS IS THE DIRECTION KARK IS GONNA GO, AND THESE ORGANIZATIONS ARE ALL GONNA BE FUNDED FROM THE CITY OUT OF KARK, WE'RE GONNA FIGURE THAT OUT.
SO, I MEAN, I, I'M I, ON THE MARIJUANA THING, I THINK THE INTENTION OF THE ORDINANCE WAS TO FUND HEALTH RELATED THINGS.
UM, I UNDERSTAND THAT WE SORT OF, IT'S ALL SORT OF EARMARKED OR SOMETHING ALREADY.
UM, I THINK WE CAN LOOK AT MAYBE THE COUNCIL'S CONTINGENCY FUND FOR A LITTLE BIT OF THIS, BUT I, I'M JUST GONNA SAY, I DON'T THINK, I DON'T THINK WE, WE CAN'T FUND THE 200 AND WHATEVER SHORTFALL AND, AND I THINK THERE WERE WELL THOUGHT OUT DECISIONS ON SOME OF THE REQUESTS THAT WERE NOT FUNDED, THOUGH.
I THINK THERE MIGHT BE A COUPLE THAT WE LOOK TO THE CONTINGENCY FUND.
SO THAT'S, BUT WHAT IT'S WORTH, THAT'S WHERE I AM.
BUT, BUT I DON'T WANT TO JUST KEEP DOING THIS EACH YEAR WHERE WE HAVE THIS SHORTFALL AND, AND, AND ORGANIZATIONS ARE, YOU KNOW, WONDERING HOW THEY'RE GONNA MAKE IT THE NEXT YEAR, BUT THEY'RE ASKING FOR FUNDS TO DO THE THINGS THAT THE CARC IS NOT GOING TO FUND.
SO WE'VE GOT TO BE HONEST AND CLEAR ABOUT THAT AND FIGURE OUT WHAT WE'RE GONNA DO.
UM, I ALSO AGREE WITH THE FACT THAT THERE'S SOME ENTITIES HERE WHO, UM, ARE RELYING ON THIS MONEY.
UM, AND LIKE YOU SAID, FOR BETTER OR FOR WORSE, THEY'RE RELYING ON IT AND HAD SOME AND CUTS.
AND, AND I DON'T BLAME THE CART FOR THAT AT ALL.
THEY WERE GIVEN X AMOUNT OF DOLLARS, RIGHT.
THEY SPENT THE ENTIRE, THE AMOUNT.
SO, UM, YOU CAN ONLY SPEND WHAT YOU HAVE.
IT'S NOT LIKE YOU CAN SAY, SO WE, WE WENT A LITTLE OVER AND, AND I A HUNDRED PERCENT GET THAT.
UM, HOWEVER, LIKE YOU SAID, I DO THINK WE'RE GONNA, IT WOULD BE A WISE DECISION TO USE SOME OF THE CONTINGENCY MONEY TO AT LEAST HELP SOME OF THOSE ENTITIES OUT THAT ARE RELYING ON IT AND, UH, PLAN FOR THOSE TWO.
AND, AND I THINK WE'RE GONNA HAVE TO BE HONEST WITH THOSE ORGANIZATIONS THAT THEY'RE GONNA HAVE TO START FINDING SOME OTHER FUNDING WITH A FLAT BUDGET.
WE'RE WE'RE, I MEAN, WE DON'T HAVE ENOUGH MONEY TO DO ALL THE THINGS, THINGS WE NEED TO DO IN THIS CITY.
AND IT'S NOT THAT WE, I THINK AS, AS KATHY PUT, IT'S NOT THAT WE DON'T BELIEVE IN THE MISSION AND VISION AND THE, THE VALUE OF WHAT THESE FOLKS ARE DOING, BUT WE HAVE A LIMITED POT OF MONEY, UM, TO SHARE.
I THINK THIS IS ONE OF THE BEST PARTS OF OUR CITY.
UM, AS LONG AS I'M HERE, THIS WILL NEVER GO AWAY.
NOT THAT I HAVE THAT MUCH SAY SO, BUT THIS IS, THIS IS AN AMAZING PART OF THE CITY, AND THAT'S WHAT COMMUNITIES SHOULD TAKE CARE OF THEIR COMMUNITIES, WHICH IS THEIR PEOPLE.
BUT THAT UP TO 3% IS UP TO 3%.
AND THAT'S ALL, THAT'S ALL THERE'S AND 3% OF A SMALLER NUMBER.
AND WE ARE WORKING ON A FLAT BUDGET.
HOPEFULLY, HOPEFULLY IT'S NOT WHAT, SO DO WE WANT MANAGING OUR LOSSES? SO ON THE, ON THE INCOME SIDE, SO WE HAVE THE CITY COUNCIL CONTINGENCY, WHICH WE'LL FIND OUT IF THAT'S SOMEWHERE BETWEEN 80 OR A HUNDRED.
AS FAR AS WHAT MIGHT HASN'T BEEN SPENT ON THE MARIJUANA STUFF.
MY UNDERSTANDING IS BASED ON THE CITY COUNCIL.
I WASN'T ON CITY COUNCIL, BUT I WATCHED IT AND THEN FOLLOWED UP WITH JOSH.
AND THEN I WAS HERE WHEN WE GOT THE REPORT FROM KATHY.
I MEAN, I UNDERSTAND THAT IT'S BEING USED FOR, UM, YOU KNOW, DAY-TO-DAY OPERATIONS OR JUST GENERAL REVENUE FUND, BUT THAT'S NOT THE POLICY THAT THIS COUNCIL SET.
SO WE HAVE MARIJUANA TAX THAT CAME TO OUR CITY.
GOOD, BAD, OR INDIFFERENT FOR PEOPLE THAT HAVE OPINIONS ABOUT WHAT THAT
[00:55:01]
REPRESENTS, THERE'S SOME CASCADING IMPACT TO THAT.SO I DON'T THINK THE START IS THAT WE PULL BACK THAT VOTE OR THAT CONVERSATION AND SAY, WELL, IT JUST GOES IN THE GENERAL REVENUE FUND.
I THINK IT STARTS IN PUBLIC HEALTH AND WELFARE.
AND THEN IF WE HAVE SOME SORT OF OTHER EMERGENCY THAT IS RIGHT IN FRONT OF US THAT WE NEED TO ADDRESS, THEN IT GOES THE OTHER WAY.
BUT I THINK THE POLICY DECISION'S ALREADY BEEN MADE.
I THINK WHAT IS LEFT IS WHAT IT'S GONNA BE SPENT ON AS FAR AS PUBLIC HEALTH BENEFIT.
WE, THIS COUNCIL HAS THE ABILITY TO YES.
WE, WE ISSUED AN ORDINANCE THAT WE'VE DONE IT BEFORE WHERE WE'VE CHANGED ORDINANCES THAT WERE ISSUED IN IN THE PAST BASED ON THE, THE, UH, LAY OF THE LAND OF THE, OF THE CITY COUNCIL.
SO, BUT THE THING IS, IS THAT WE, WE DO HAVE A LIMITED AMOUNT OF FUNDS.
UH, EVERYONE IS, HAS BEEN ASKED TO LOOK FLAT.
AND SO THIS IS THE REALITY OF THIS YEAR.
KATHY, YOU'LL GET WITH US TO TELL US WHAT THAT AMOUNT IS AT SOME POINT IN TIME.
I'M SORRY, YOU'LL GET WITH US TO TELL US WHAT THE REMAINING BALANCE IS ON THE CONTINGENCY.
SO THE A HUNDRED K WOULD BE FROM, I MEAN, I CAN UNDERSTAND THE DISCUSSION WHERE WE CHANGE A POLICY OR CHANGE AN ORDINANCE, BUT TO BUILD A BUDGET, I'M JUST GONNA WORK OFF THE ORDINANCE THAT WE HAVE NOW, WHICH SAYS THAT WE ARE UTILIZING MARIJUANA, UH, TAX FOR PUBLIC HEALTH BENEFIT.
THE LATEST NUMBERS THAT WE HAVE FROM FINANCE ARE THAT IT'LL GENERATE 480,000 OF WHICH POLICE GETS 176.
FIRE GETS 144, WHICH MEANS THE GENERAL REVENUE FUND ON THAT WOULD BE A HUNDRED FIFTY NINE, THREE HUNDRED SIXTY, GIVE OR TAKE.
BUT UNLESS WE HAVE ANOTHER VOTER DISCUSSION, I WOULD PUT IT IN THE BUDGET THAT IT HAS TO BE USED FOR A PUBLIC HEALTH BENEFIT AS THE CURRENT ORDINANCE READS, NOT THE REVERSE OF DOING IT UNLESS WE HAVE ANOTHER VOTE ON IT.
I MEAN, I HEAR WHAT YOU'RE SAYING, BUT A HUNDRED AND, I MEAN, CERTAINLY 159,000 OF OUR CURRENT BUDGET GOES TOWARDS HEALTH AND WELLNESS.
AND SO WE COULD SAY THERE IT IS.
I MEAN, DO YOU KNOW WHAT I MEAN? UM, YEAH.
I MEAN, BECAUSE WE'RE TAKING IT FROM, I MEAN, DO YOU KNOW WHAT I'M, DO YOU KNOW WHAT I'M SAYING? WELL, WE'VE GOT A PIE, AND I'M SURE WE ALREADY HAVE HEALTH AND WELLNESS THINGS.
UM, AND SO WE SAY THAT 159 IS GOING THERE.
IT'S NOT CRAIG, THAT'S THE THING.
IT'S, IT'S, IT'S GOING TO COME IF WE, IF WE MOVE A HUNDRED, 159 OUT OF THE GENERAL BUDGET, WE'VE GOTTA GO SOMEWHERE ELSE TO GET THE HUNDRED 59.
'CAUSE IT, IT NEEDS TO GO BACK INTO THE GENERAL BUDGET TO KEEP THE OTHER THINGS GOING.
SO, AND SOME OF THESE, I MEAN, I THINK GOING BACK TO THE FLAT BUDGET IDEA, I THINK, AND I THOUGHT I'D PRINTED OFF SOME NOTES OF, BUT I MEAN, SOME OF THESE ARE INCREASED REQUEST AMOUNT.
SO I THINK WE CAN'T JUST GO, OH, WE DIDN'T FUND ALL THE REQUESTS.
BUT I MEAN, IF WE'RE LOOKING AT DEPARTMENTS NOT HAVING INCREASES, THEN I THINK, YOU KNOW WHAT I'M SAYING? SO IF ONE ORGANIZATION REQUESTED A HUNDRED THOUSAND AND LAST YEAR THEY DID 90 AND WE FUNDED IT 80, DO, DO YOU KNOW WHAT I MEAN? MAYBE WE USE SOME OF THE CONTINGENCY TO DO THE 10, BUT WE'RE NOT UPPING IT.
UNDERSTAND WHAT YOU'RE SAYING.
I'D HAVE TO, I DON'T, YEAH, I MEAN, WE COULD, OBVIOUSLY CHRISTIE COULD PROVIDE US AN UPDATE BEFORE WE PASS THE BUDGET OF LIKE, YOU KNOW, ANY OF THAT HAD LIKE A PERCENT KIND OF INCREASE.
I KNOW THERE WERE SOME THAT HAD SMALL IN INCREASES ON THAT.
UM, BUT, UH, YEAH, I THINK SO THERE'S A LONGER TERM AND A SHORT TERM.
THE LONGER TERM IS OBVIOUSLY THE CONVERSATION ABOUT AROUND PROBABLY TWO OR THREE ENTITIES.
WHETHER THEY SHOULD HAVE BEEN CLARK OR SHOULD HAVE A LINE ITEM SOMEWHERE ELSE.
UM, AS I GO THROUGH THESE, YOU KNOW, I SEE THE MUSEUM, THE DELTA'S 45,000 I DEFINITELY SUPPORT AND HAVE JUST BEEN BLOWN AWAY BY ALL THAT THEY'VE BEEN DOING.
JUST, JUST COUNCILMAN WARD ONE TALKING HERE, BUT TURNING POINT, POINT, THAT'S IN MY DISTRICT.
SO AS MUCH AS WE CARE ABOUT, AND ALL OF US DO ABOUT DIFFERENT LEVELS OF ATTAINABLE HOUSING, IT'S THE ONE REPRESENTATION OF AN ACTUAL NEIGHBORHOOD THAT IS BUILT ON THE PRINCIPLE OF ECONOMIC EDUCATION AND PEOPLE HELPING WITH THEIR NEIGHBORS TO BUILD IT.
I THINK THE HANGUP THERE WAS, FROM THE FEEDBACK THAT I GOT, IS YOU'RE ONLY BUILDING ONE HOME AT A TIME.
UM, I DO KNOW THAT, I THINK IT'S ON OUR AGENDA FOR LATER TODAY.
WE DID JUST RECEIVE SOME ADDITIONAL, UH, FEDERAL RELIEF DOLLARS FOR RENT ASSISTANCE.
SO I COULD ARGUE THAT WE HAVE, I THINK IT'S CLOSE TO HALF A MILLION.
I'M GONNA GET THE EXACT NUMBER WRONG OF ADDITIONAL RENT ASSURANCE ASSISTANCE COMING.
SO WE COULD SAY THAT COULD TAKE CARE OF THAT CLASS
[01:00:01]
OF FOLKS THAT NEED THAT ASSISTANCE WITH THE FACT THAT WE HAVE A EXTREMELY WELL BUILT RUN.I, I JUST PERSONALLY SEE VALUE IN THAT, THE UCO ENDEAVOR GAMES.
UM, I DO KNOW THAT LIKE, VISIT EDMOND DOES SUPPORT THEM WITH $5,000.
UM, I, I KNOW, YOU KNOW, I DON'T WANT TO SPOOK THEM AS FAR AS BUDGET AND STUFF, BUT I THINK, YOU KNOW, US GIVING 20 THROUGH CLARK, I THINK WE COULD GO BACK TO VISIT EDMUND AND HAVE A CONVERSATION ABOUT, UH, US BRINGING OURS DOWN AND THEN BRINGING UP SOME, WHATEVER THAT LOOKS LIKE.
UM, UH, AND THEN YOU ARE SPECIAL WHO I'VE BEEN INVOLVED WITH.
I HAD A CONVERSATION WITH THEIR EXECUTIVE DIRECTOR AND I, I THINK, UM, UH, I WOULD SUPPORT THEIR, THEIR ADDITIONAL, UH, FUNDING AS WELL TO MATCH LAST YEAR, BUT NOT AN INCREASE.
UM, SO THERE'S A COUPLE ONES THERE.
I, I MEAN, I DO AGREE WITH, YOU KNOW, ON THE SOCCER ONE, I, I TOTALLY GET IT ON THE YMCA ONE.
I GOT SOME ADDITIONAL INFORMATION.
SO DEFINITELY THERE'S BEEN SOME, UH, CUTS MADE, WHICH, YOU KNOW, I, I AGREE WITH.
BUT AT SOME POINT WE GOTTA ROLL UP OUR SLEEVES AND I DON'T KNOW WHERE WE WANT TO DO IT, BUT WE'RE GONNA HAVE TO IDENTIFY POTENTIAL PRIORITIES THAT WE HAVE, AND THEN POTENTIAL SOURCES OF, OF MONEY.
AND THEN WE JUST, I GUESS WE JUST GOTTA VOTE, YOU KNOW, AS FAR AS AT SOME, YOU KNOW, THIS ONE OR AT LEAST THE FINAL BUDGET.
SO I GUESS WE NEED TO DEVELOP A WAY FORWARD HERE.
I MEAN, FOR THIS ITEM HERE THAT, UM, WE HAVE THE REQUESTED AMOUNT, WE HAVE THE RECOMMENDATIONS.
WE, WE HA WE HAVE THE DATA THAT SHOWS WHY THESE RECOMMENDATIONS WERE GIVEN.
IS THERE ANY OTHER ADDITIONAL INFORMATION THAT WE NEED TO GO OFF AND REVIEW, PONDER ON BEFORE I WOULD SAY COUNCIL COMES BACK WITH THEIR ITEMS THAT THEY, UH, UM, AGENCIES THEY WANT TO CHANGE OR NOT CHANGE, OR I THINK COUNCILMAN MEMBER MUG MENTIONED MAYBE WHAT THEY, UM, RECEIVED LAST YEAR.
DIDN'T THAT WHAT YOU ASKED FOR? THAT'S A GOOD POINT.
COULD YOU PLEASE REPEAT, PLEASE? UM, I SAID, I THINK COUNCILWOMAN MUG MENTIONED KNOWING POSSIBLY WHAT THEY RECEIVED LAST YEAR VERSUS WHAT THEIR ASK WAS THIS YEAR.
ON THE SOCIAL AGENCIES, THE ONLY ONE THAT DIDN'T ASK FOR WHAT THEY RE SO EVAN MOBILE MILLS ASKED FOR AN INCREASE.
EVERYBODY ELSE ASKED FOR THE SAME AMOUNT THEY GOT LAST YEAR.
WELL THEN, AND, AND YOU FULLY FUNDED LAST YEAR.
ON THE COMMUNITY AGENCIES, IT'S, IT'S, THERE'S SOME THAT ASK FOR AN INCREASE.
UM, AND THERE ARE SOME THAT DID NOT E NOT GET EVEN WHAT THEY ASKED FOR LAST YEAR, THEY WERE REDUCED EVEN FOR PAST WHAT THEY RECEIVED LAST YEAR.
AND IF I COULD, I, THE, THE $10,000 SHORT ON FOSTERING SWEET DRINK, THESE ARE KIDS THAT ARE FROM ABUSIVE SITUATIONS.
I MEAN, THEY OUGHT TO HAVE A BLANKET OF THEIR OWN.
AND I DON'T KNOW WHAT WE GOTTA DO TO FIND $10,000 TO MEET THAT REQUEST, BUT I'D SURE LIKE TO LOOK AT THAT.
WELL, THAT'S WHY WE NEED TO COME UP WITH, I MEAN, 'CAUSE I CAN COME UP WITH A SCENARIO FOR EVERYONE, EVERY ONE OF THEM.
AND SO WE, AND SO THE QUESTION IS TWOFOLD.
ARE WE GOING TO TAKE EACH ONE INDIVIDUALLY AND GO THROUGH IT LIKE WE DID LAST YEAR? AND, AND, AND THEN WE, WE, WE ASK THE CITY MANAGER TO GO FIND THE, THE DELTA? OR ARE WE GOING TO LOOK AT EACH ONE, UH, MAKE SURE THAT, UH, SALARIES AND THOSE TYPE OF ENHANCEMENTS AREN'T IN THERE.
RECONFIRM AND BEING, AND THEN GO BACK THROUGH THE SCENARIO OF THAT, OF, OF, OF THE DIFFERENCE.
BECAUSE IF ONLY ONE AGENCY HAS ASKED FOR AN ACTUAL INCREASE OVER LAST YEAR, UH, WELL, I THOUGHT YOU WAS SAYING ONLY ONE IN THE SOCIAL.
I CAN IF YOU WANT TO HEAR 'EM REAL QUICK.
SO, UM, HISTORICAL MUSEUM, UH, ADMIN MUSEUM ASKED FOR AN INCREASE.
UM, AND THEY DID NOT, WAS NOT RECOMMENDED.
THEIR, WHAT THEY RECEIVED LAST YEAR, THEY RE THEY ASKED FOR AND RECEIVED LAST YEAR, 307,000, THE PRESERVATION TRUST, UM, ASKED AND RECEIVED 30,000 LAST YEAR.
I BELIEVE THEY'RE RECOMMENDED FOR 25 THIS YEAR.
LET ME GO BACK SO YOU CAN SEE THOSE ON THE COMMUNITY.
UM, THE NEXT ONE IS Y-M-C-Y-M-Y-M-C-A COMMUNITY SUPPORT THEY ASKED FOR AND RECEIVED 15,000 LAST YEAR.
THIS YEAR THEY RECOMMENDED 10,000.
[01:05:01]
AND DO, AND DO WE KNOW ON THAT? MY UNDERSTANDING, IT'S FOR LIKE WHAT THEY WOULD CALL LIKE A CHECKOFF PROGRAM SO THAT, YOU KNOW, A KID WHO DOESN'T OR WOULDN'T HAVE THE MEANS TO PLAY SPORTS COULD BE PUT ON A TEAM OR WHATEVER.SO, LIKE, MY FAMILY IS A MEMBER OF THE Y MM-HMM.
DOES THE Y HAVE A PROGRAM WHERE WE WOULD OPT INTO THAT AND BE ASKED TO DO IT AUTOMATICALLY? I, I'M NOT A HUNDRED PERCENT SURE, BUT I KNOW I CAN ASK AND FIND OUT BECAUSE THAT, I MEAN, IN THAT CASE, IT'S LIKE, YOU KNOW, HEY, THE, THE CITY MIGHT BE A LITTLE BIT FAT ON, FLAT ON SALES TAX, BUT MY FAMILY, AND I'M SURE A LOT OF OTHER EDMOND FAMILIES, IF THEY KNEW THAT THERE WAS WHITE KIDS THAT NEEDED A TEAM TO PLAY ON, WOULD SAY, YEAH, LET'S DONATE TO EXTRA BUCKS A MONTH.
OR, YOU KNOW, FIVE EXTRA BUCKS A MONTH, OR, YOU KNOW, WHATEVER THE, THE SUGGESTED DONATION AMOUNT IS.
SO YEAH, I CAN, I CAN REACH OUT TO THE EXECUTIVE DIRECTOR IF YOU'D LIKE.
THIS YEAR THEY ASKED FOR 320,000, BUT THEY WERE RECOMMENDED 275.
CHARACTER COUNSEL OF EDMOND LAST YEAR, THEY RECEIVED 6,000.
THEY ASKED FOR 8,000 THIS YEAR.
THEY RE UH, RECOMMENDED 3000 ON ON THAT ONE.
DO YOU KNOW, UM, BECAUSE I THINK I WENT BACK TO THEIR DOCUMENTS AND I WAS HERE WHEN THEY PRESENTED.
ARE WE THE ONLY FUNDER OF THAT? IT SEEMED LIKE WE MIGHT HAVE BEEN.
AND I THINK THE REQUESTED INCREASE WAS FOR SCHOLARSHIPS THAT THEY WERE OKAY.
I MEAN, A NEW PRO, I, THEY WERE INCREASING THEIR, WE'RE GONNA SAY THAT'S FINE.
BUT THAT'S ONE, FOR EXAMPLE, THAT I THINK HAS A GOOD MISSION, BUT IT'S COMPLETELY FUNDED BY THE CITY.
UM, HANDING OUT SCHOLARSHIPS FOR THE, A GREAT MISSION, BUT WOULD BE ONE THAT I'D WANNA LOOK AT FURTHER TO, UM, TO, TO SEE IF WE CAN CONTINUE FUNDING 'EM OR NOT.
'CAUSE WE'RE THEIR SOLE FUNDER, UM, EDMONDS SOCCER CLUB.
UM, LIKE WE, LIKE SAID EARLIER, IT WAS TOP SOCCER THAT WAS AWARDED THE FUNDING LAST YEAR.
UM, THEY WERE, THEY RECEIVED 5,000 LAST YEAR.
UM, EDMONDS SOCCER CLUB ASKED FOR 41,000.
UM, THIS YEAR THEY WERE RECOMMENDED ZERO.
AND THEN OKLAHOMA BAPTIST HOMES, UM, HISTORICALLY HAS ASKED FOR AND RECEIVED 7,500 FOR THEIR CHRISTMAS PAGEANT.
BUT THEY TOTALLY CHANGED WHAT THEY ASKED FOR THIS YEAR.
UM, THEY DIDN'T ASK FOR AN INCREASE.
IT WAS JUST A DIFFERENT, UM, THEY WERE ASKING TO COVER OPERATIONS COSTS, LIKE UTILITIES AND SUCH.
UM, AND THEY WERE RECOMMENDED FUNDING OF 2,500.
SO THERE'S FIVE ORGAN SIX ORGANIZATIONS THAT ASKED, DID NOT RECEIVE WHAT EVEN WHAT THEY REQUESTED LAST YEAR.
SO WE HAVE A LITTLE BIT MORE TIME FOR BUDGET COUNSEL.
UM, UNLESS YOU'RE READY TO MAKE A A FINE TUNING ON THIS, I'VE FIGURED THAT WE'VE TO BRING IT BACK AND OR TALK ABOUT IT.
FINALIZE THE BUDGET TO GO FORWARD.
I WANT TO ASK JARED, MAYBE WE HAVE TO POST THE PROPOSED BUDGET BY WHEN? FIVE, UH, FIVE BUSINESS DAY? WELL, NO, JUST FIVE DAYS BEFORE THE PUBLIC HEARING.
UM, I NEED TO GET THE BUDGET TO CORY SO THAT IT CAN BE POSTED AT THAT POINT IN TIME BY NEXT THURSDAY, FIVE CALENDAR DAYS, OR FIVE, UH, FIVE CALENDAR DAYS, I BELIEVE.
BUT WE HAVE A LEAD TIME ON THE NEWSPAPER TOO.
UH, THAT, I MEAN, BUT AGAIN, IT'S JUST THE PROPOSED BUDGET AT THAT TIME.
SO IT'S NOT THAT COUNCIL CAN'T MAKE REVISIONS AFTER.
IT JUST TRYING TO PUT A PARAMETER AS FAR AS A CALENDAR AROUND.
SO WE HAVE, I THINK LATER ON THE AGENDA, IT'S ALTERNATE SOURCES OF FUNDING.
DOES THAT INCLUDE ARPA? UH, THE DOLLARS? IT DOES NOT.
SO DO WE KNOW IF FOR WHAT AT THIS TIME WE HAVE COMMITTED TO THAT? WE, MY UNDERSTANDING IS WE HAVE ABOUT 2 MILLION THAT'S UNALLOCATED AT THIS POINT.
I KNOW THAT, I KNOW THERE'VE BEEN SOME INTERNAL DISCUSSIONS, I THINK, OF PEOPLE OBVIOUSLY HAVING PROJECTS OR THINGS THEY WANTED TO DO.
BUT IS THIS, SEEMS LIKE MOST OF THESE WOULD MEET AN ARPA NEED IF WE WANTED TO USE SOME OF THAT.
I'M, YOU KNOW, I'M NOT, I DON'T HAVE A LAW DEGREE.
SO, SO SOME OF THEM WOULD, UH, WITHOUT A QUESTION, WITHOUT A DOUBT.
UM, SOME OF THE AFFORDABLE HOUSING, MENTAL HEALTH, ET CETERA.
THERE IS A PARAMETER, UH, ON THE FINAL RULE OF PROVIDING FUNDING TO NONPROFITS BECAUSE THEY WERE ONE OF THE AGENTS OR ORGANIZATIONS THAT WERE AFFECTED DURING COVID OR DUR DURING THAT TIME PERIOD.
UM, BUT WE WOULD HAVE TO LOOK AT THE ONES THAT YOU WOULD WANNA FUND FULLY TO SEE IF THEY MET THE, MET THOSE PARAMETERS.
SO I THINK THAT WOULD MERIT A DISCUSSION.
'CAUSE WE ULTIMATELY, THE COUNCIL NEED TO DECIDE WHERE AND WHEN TO SPEND THOSE DOLLARS TO THE BEST BENEFIT OF THE CITY.
AND THEN I THINK, UM, THERE'S PROBABLY SOME DISAGREEMENT ON THE DIOCESE IN REGARDS TO MARIJUANA
[01:10:01]
TAX.IS IT, LIKE, DO WE SAY THERE'S SOMETHING ALREADY HAPPENING THAT'S USING FOR PUBLIC HEALTH AND, AND WE JUST SAY THAT'S WHERE THE $150,000 IS ALREADY GOING? DO WE SAY IT'S SOMETHING NEW? IN MY OPINION, MARIJUANA IS NEW MONEY BECAUSE IT EXISTS, BECAUSE MARIJUANA NOW EXISTS AS FAR AS THE SALES THING.
AND SO AS A CITY, WE'VE MADE A PUBLIC A COMMITMENT TO PUBLIC HEALTH, BUT OBVIOUSLY WE HAVE FIVE DIFFERENT PEOPLE AND WE'RE GONNA HAVE FIVE DIFFERENT OPINIONS.
AND SO I WOULD BE OPEN TO STICKING A TOE INTO THAT, UM, TO, TO, TO DO SOME PART OF THIS IN THERE.
BUT OBVIOUSLY WE NEED TO BE, UH, HAVE A DISCUSSION AS TO WHERE THAT FITS IN THE BUDGET THAT WE PASS IN JUNE, AND IF IT INCLUDES BEING ABLE TO ASSIST ANY OF THESE ORGANIZATIONS THAT ARE ON THIS, UH, CLARK LIST.
SO WHAT ARE THE DATES THAT WE HAVE TO HAVE SOMETHING POSTED BY REFRESH PROPOSED THE 22ND? JUST VERIFY REAL QUICK.
I MEAN, IT'S KIND OF A CONTINGENCY FUND, YOU KNOW, I MEAN, I THINK IF THERE'S DIFFERENT WAYS WE CAN KIND OF TRANSITION AND MEET THE NEEDS.
AND THEN, AND THEN WE REALLY DO NEED TO FIGURE OUT ON SOME OF THESE ORGANIZATIONS WHO ARE FUNDING, YOU KNOW, OPERATIONS, UTILITIES, SALARIES FROM THESE MONIES THAT WE, WE DON'T WANT PEOPLE COUNTING ON THESE MONIES BECAUSE AGAIN, WHAT IF SALES TAX GOES DOWN? WHAT IF, YOU KNOW, WE HAVE AN EMERGENCY IN THE CITY.
WE, WE WANNA SUPPLEMENT AND ASSIST THESE ORGANIZATIONS, BUT NOT BE THEIR SOLE SOURCE OF FUNDING AND NOT BE FUNDING OPERATIONS.
SO LONG AND SHORT TERM ISSUES.
SO WE'VE RECEIVED THE INFORMATION, AND CORRECT ME IF I'M WRONG, OR WAS I DREAMING THAT WE, OF THE ORGANIZATIONS THAT HAVE, THAT WE ARE FUNDING SALARIES OR THAT, THAT THEY WANT SALARIES FUNDED.
WE HAVE A FEW ORGANIZATIONS THAT WE SUPPORT THEM 100%.
SO THAT IT'S OPERATIONS AND PROGRAMMING.
COUNSEL, WHAT DO YOU WANT? WHAT DO I MEAN? I, I MEAN, WE WANNA GIVE THESE ORGANIZATION ORGANIZATIONS CLARITY AND LEAD TIME TO SAY, LOOK, YOU CANNOT COUNT ON THIS FOR NEXT YEAR.
OR TRANSITION THAT DEPENDENCE AWAY, OR, YOU KNOW, SO IS THAT WHAT WE DO IS I DON'T, WE, WE, WE CREATE A, A A A, A NEW SCENARIO.
LIKE IN DECEMBER OF LAST YEAR, WE CAME UP WITH NEW GUIDANCE.
THIS YEAR WE GUIDANCE IS THAT WE, WELL, I DON'T, I FEEL LIKE THE GUIDANCE IS THERE, BUT I DON'T, I STILL DON'T FEEL LIKE THE ORGANIZATION'S NECESSARILY UNDERSTOOD.
WELL, AND WE ALSO TALKED ABOUT A COUPLE OF ENTITIES BEING MOVED OUT, POTENTIALLY MOVED OUT OF CAR AND HAVING LINE ITEMS. YEAH.
AND SO WE GOT THIS, BUT IT DIDN'T HAPPEN.
SO NOW WE'RE KIND OF PLAYING CATCH UP.
SO WE JUST PROBABLY NEED TO, WE NOT, PROBABLY, WE NEED TO MAKE SURE THAT HAPPENS.
DO WE NEED TO HAVE THAT ADDITIONAL CONVERSATION ABOUT, UH, UH, CORRECT.
THE COUNCIL LAST YEAR HAD THE, UH,
WE, WE MADE A DECISION NOT TO, TO, TO ADDRESS IT, BUT TO BRING THAT BACK FORWARD AND SAY, ARE THERE, UH, SOME AGENCIES THAT WE WOULD WANT TO HAVE FURTHER DISCUSSIONS ABOUT BRINGING 'EM INTO THE, UH, GENERAL BUDGET LIGHT ITEM? MM-HMM.
IT'S JUST, I KNOW IT'S IMPORTANT TO ALL OF US.
I WOULD, IF COUNSEL WANTED ME TO, I MEAN, I'D VOLUNTEER TO, TO SORT OF HELP LEAD, LEAD THAT EFFORT TO GET BACK WITH CLARK FIGURE OUT, SO THAT WE CAN HAVE SOME CLARITY, UH, WITH, WITH THE WHOLE GOAL OF THAT.
WE HAVE A RECOMMENDATION FAR BEFORE THIS TIME NEXT YEAR IN REGARDS TO, UM, WHO CAR FUNDS.
LIKE WHAT, LIKE DO GO BACK, JUST LIKE THE MAYOR SAID, DO WE ANOTHER LINE GENERAL BUDGET ITEM? WHERE MIGHT THAT COME FROM? I'M HAPPY TO VOLUNTEER AND DO THAT IF THAT'S WHAT'S DESIRED.
BUT IF WE WANNA GO ANOTHER ROUTE, I MEAN, I GUESS IN THE NEXT TWO WEEKS WE GOTTA FIGURE OUT ARE WE APPROVING THIS RECOMMENDATION? ARE WE DOING SOMETHING ELSE? AND THEN LIKE, NOT KICKING THE CAN DOWN THE ROAD.
THAT'S WHAT I'M TALKING ABOUT.
BUT ACTUALLY IN THE NEXT MONTH OR TWO MONTH, MAYBE FIGURING THAT ISSUE OUT AND,
[01:15:01]
YOU KNOW, 'CAUSE I MEAN, WE DID CHANGE THE, THE, THE ORDINANCE ON THIS IS THE CRITERIA.I THINK THAT CRITERIA WAS COMMUNICATED TO THE ORGANIZATIONS.
IT WAS, THIS HAS BEEN COMMUNICATED THE LAST TWO TIMES.
UM, THAT THERE WAS CHANGES COMING DOWN.
AND THEN WE HAD THE, UM, DISCUSSION OF IT IN DECEMBER.
SO THEY WERE AWARE IT WAS ALSO POSTED RIGHT.
WITH THEIR APPLICATION OF WHAT THE REQUIREMENTS WERE AND WHAT THINGS WERE NOT GONNA BE FUNDED GOING FORWARD.
SO THAT WAS ALL AVAILABLE TO THEM AND COMMUNICATED TO THEM.
I I ALSO, WHEN I SENT THE EMAIL OUT TO OUR AGENCIES, I COMMUNICATED THAT, THAT THERE HAD BEEN CHANGES.
AND THEN WE, I MEAN, WE HAVE TO DECIDE WHAT DOES NOT BELONG IN CLARK AND PUT IT SOMEWHERE ELSE.
AND THAT HAS BEEN CLARK'S RECOMMENDATION AS WELL.
SO I THINK WE HAVE GOOD POLICIES ABOUT WHAT'S BEING FUNDED.
WE JUST HAVE SOME ORGANIZATIONS THAT ARE STILL RELYING UPON CLARK A HUNDRED PERCENT FOR THEIR FUNDING AND OR FOR ITEMS THAT ARE NOT TO BE FUNDED BY CLARK.
SO AGAIN, WE GOT SHORT TERM AND WE GOT MEDIUM TERM.
SO, SO COUNSEL, WHAT DO YOU WANNA DO ON THE SHORT TERM? 'CAUSE SO WE CAN, I MEAN, I, I WANNA GET CLARITY ON OUR ARPA DOLLARS IF AND WHAT MIGHT BE AVAILABLE.
CITY COUNCIL'S DESIRE TO SPEND ANY, OR ALLOCATE ANY OF OUR A HUNDRED THOUSAND CONTINGENCY THAT'LL EXPIRE AS THIS BUDGET IN A COUPLE WEEKS.
HOW DO WE WANT TO, UM, UH, INTERPRET THE POLICY THAT COUNCIL PASSED? WHAT, WHAT MEETS THE THRESHOLD OF, OF, UM, PUBLIC HEALTH BENEFIT? SO FOR, SO THAT WE CAN BE, BE IN COMPLIANCE BY THE 22ND WITH COUNCIL, BE IN FAVOR OF, UH, POSTING AS PRESENTED, AND THEN MAKE, UH, MODIFICATIONS ON THE BUDGET HEARING.
AND DOABLE, I GUESS FOR THE RECORD OR WHAT HAVE YOU.
UM, I'M COMFORTABLE USING OUR COUNCIL CONTINGENCY, ESPECIALLY GIVEN WHERE WE ARE IN THE, IN THE FISCAL YEAR ON SOME OF THESE ITEMS. I AGREE.
SO THEN I THINK YOU WERE, I'M HEARING, OH, AND I DIDN'T LOOK THIS WAY.
ARE YOU, IS THIS SIDE OF THE COUNCIL AMENABLE? SO THEN THAT WE WOULD, SO WE CAN MEET OUR FINANCIAL AND LEGAL OBLIGATIONS TO POST THAT BUDGET, BECAUSE LIKE CORY SAID, IT'S PROPOSED.
I THAT WORD WAS COMING OUT PROPOSED? NO, I'M SORRY.
BUT THEN WE WOULD HAVE THIS ADDITIONAL INFORMATION COME TO US, AND THEN ON THE BUDGET HEARING THAT WE HAVE, WE WILL FINALIZE IT AND THEN ANY REVISIONS CAN BE MADE, BUT WE WILL BE IN COMPLIANCE WITH, UM, THE RULES AND REGULATIONS THAT WE ARE.
AND THEN THAT'S THE SHORT TERM.
AND THEN WE STILL GOTTA FIGURE OUT THE LONG TERM, WHICH IS NOT SOMETHING TO, TO POSSIBLY HAVE FOR ANOTHER MEETING.
OR WE CAN TAKE COUNCIL MEMBER, UH, UH, ROBIN'S, UH, SUGGESTION.
COREY, CAN YOU REMIND ME WHEN THE BUDGET HEARING IS 28TH? 28TH, 20? UH, YES.
THE 28TH IS, UH, THE, GOT IT PROPOSED OPEN THE PUBLIC BUDGET HEARING, AND THEN I BELIEVE TENTATIVELY WE HAVE THE BUDGET ADOPTION FOR THE FIRST FULL MEETING, REAL REGULAR MEETING IN JUNE.
AND THAT MEETING STARTS AT TWO O'CLOCK, THE BUDGET HEARING THE 28TH? YEAH.
APPARENTLY I WANNA KEEP IN THIS PAST YEAR.
UM, IT'S TOTAL FISCAL YEAR FOR 20 24, 25.
I'M TRYING TO SLOW TIME DOWN APPARENTLY, SO I APOLOGIZE FOR THAT.
AND, AND ON THE LONG TERM, WE, WE, WE, WE CAN'T BE SITTING UP HERE AGAIN LIKE THIS NEXT YEAR.
WE GOTTA, WE GOTTA FIGURE THIS OUT, BUT IT JUST SHOWS THAT THE NEED OF OUR COMMUNITY IS, IS THERE.
AND THAT'S WHY, IT'S, WHY IT'S SUCH A DIFFICULT, OKAY.
[4. Presentation and Discussion of Fiscal Year 2024-25 Financial Outlook.]
THANK YOU.UH, GOOD AFTERNOON, MR. MAYOR AND MEMBERS OF COUNCIL.
I'M THE BUDGET SENIOR MANAGER FOR THE CITY OF EDMOND.
UM, TODAY I'M BRINGING YOU, UH, QUITE A BIT.
[01:20:01]
I'LL TRY TO GO FAST SO THAT WE DON'T GO RUN OVER AND TAKE UP TOO MUCH OF YOUR TIME.BUT, UH, THE FIRST THING THAT I'D LIKE TO ADDRESS IS EDMOND'S 24 25 FINANCIAL OUTLOOK.
SO NOT JUST THIS NEXT YEAR, BUT THE YEARS AFTER THAT.
AND PRIMARILY THE, UH, 1% DROPPING OFF IN 26 27.
THIS IS SOMETHING THAT WE'VE KEPT AN EYE ON AND WOULD LIKE TO BRING TO YOUR ATTENTION IN A, UH, MORE NUMBERS AND GRAPHICAL DEPICTION.
SO THIS IS A LOOK AT THE GENERAL FUND WITHOUT THE 1 CENT TAX RENEWAL AND WITH THE 1 CENT TAX RENEWAL, UH, THE GREEN LINE IS YOUR EXPENSES.
THE BLUE LINE IS YOUR REVENUES.
UH, YOU CAN SEE THAT WITH THE REVENUE GROWTH SHOWN ON THE RIGHT SIDE, UH, 0.5% FOR THIS NEXT YEAR, 1% FOR THE YEAR AFTER THAT, AND THEN BACK UP TO 2%.
AND THEN WITH EXPENSE, UH, INFLATION RATE OF 3%.
UH, JUST ECHOING MORE SO WHAT THE FED HAS BEEN SAYING, OUR INFLATION IS CURRENTLY AT, UH, JUST KEEPING THAT STRAIGHT, UM, WITHOUT THE 1%, WE'RE LOOKING AT A VERY LARGE FUNDING GAP.
IF THAT TAX IS NOT RENEWED, THE, THE TOTAL, UM, FUNDING NEED AMOUNTS TO ABOUT TO 72.1 MILLION FROM FISCAL YEAR 26, 27 TO 28, 29.
UH, THE PROJECTED RESERVE BALANCE UP TO THAT POINT IN TIME IS $19 MILLION.
SO THERE'S A LARGE GAP IN THERE THAT WE WOULDN'T BE ABLE TO CO COVER WITH OUR CURRENT RESERVES THAT WE HAVE BANKED.
UM, WITH THE ONE, UH, 1 CENT TAX RENEWAL, WE WOULD STILL DIP INTO OUR RESERVES ABOUT 27, 28, AND 28, 29.
THAT AMOUNT IS ONLY ABOUT $5 MILLION FOR THOSE TWO YEARS COMBINED.
SO NOT AS MUCH OF A, AN ISSUE, BUT STILL AN ISSUE.
SOMETHING THAT WE WILL NEED TO TAKE INTO CONSIDERATION IN, IN FUTURE YEARS.
NEXT IS ITS EFFECT ON POLICE, UH, POLICE'S, FINANCIALS IN PARTICULAR.
UM, THIS IS THE EXACT SAME THING.
THE EXPENSE IS YOUR GREEN, YOUR REVENUE IS, UH, YOUR FORECASTED REVENUE.
UH, YOUR BLUE IS YOUR FORECASTED REVENUE.
AND THEN THE GRAY IS THAT FUNDING GAP.
UM, LESS OF AN IMPACT, BUT STILL AN IMPACT ON POLICE AND FIRE.
THIS IS, UH, PRIMARILY DUE TO THE PERCENTAGE OF JOURNAL FUND REVENUE THAT DOES GET TRANSFERRED OVER TO POLICE AND FIRE EVERY YEAR.
UH, WITH THIS, UH, THE PROJECTED RESERVE FOR POLICE, UH, OVER THOSE YEARS DROPS DOWN TO, UH, 5.3 IF, UM, IF THE, UH, WITH RENEWAL AND 4 MILLION, UH, WITHOUT THE RENEWAL, UH, ON THE BOTTOM, THIS JUST REPRESENTS YOUR, UH, PERCENT RESERVE.
SO SIMILARLY TO THE 10% RESERVE FOR THE GENERAL FUND, THAT JUST KIND OF BREAKS THAT DOWN INTO THOSE SAME PARAMETERS, WHICH WOULD MEAN THAT AT THE END OF, UH, 28, 29, WE WOULD BE AT ABOUT ROUGHLY 12 OR 15% OF RESERVES.
POLICE AND FIRE HAVE, UH, STATED IN THE PAST THAT THEY WOULD PREFER TO STAY AROUND 30% AS THE RECOMMENDED, UH, RESERVE LEVEL FOR GOVERNMENT ENTITIES FROM, UH, ONE OF OUR, UH, CONSULTANTS, CRAWFORD AND ASSOCIATES.
OUR, UH, INTERNAL AUDITORS HAVE RECOMMENDED IN THE PAST, UM, SAME DEPICTION FOR FIRE.
UM, AGAIN, IT'S NOT AS MUCH OF A, AN IMPACT ON THESE TWO, BUT IT DOES STILL IMPACT THEIR FUNDS IN TOTAL.
THEY ARE PLANNING ON, ON SPENDING DOWN A LOT OF THEIR RESERVES BECAUSE THEY HAVE BANKED QUITE A BIT, UM, WHICH IS ABSOLUTELY NATURAL FOR THEIR TYPE OF, UH, TAX SPECIFICALLY.
BUT IT WILL EAT AWAY AT THEIR RESERVES AT A FASTER RATE THAN WHAT WE HAD ANTICIPATED.
AND THEN SAME THING FOR, FOR FIRE.
THIS WOULD LEAVE THEM WITH 5 MILLION IF IT WAS RENEWED AND 2.5 MILLION IF NOT RENEWED.
AND, UH, IN PERCENTAGES THAT WOULD BE 8% WITHOUT RENEWAL AND 15% WITH THE RENEWAL.
SO THE OVERARCHING, UH, THEME OF ALL OF THESE SLIDES THOUGH, IS PRIMARILY THE 1% IS GOING TO END UP BEING A VERY LARGE TOPIC GOING INTO
[01:25:01]
THE 26, 27 BUDGET.BUT WE DON'T WANT TO BRING THAT UP AS A MAJOR CONCERN IN THE 26, 27 BUDGET.
AND WE WANT TO BRING THIS UP TO EVERYONE BEFORE THAT HAPPENS SO THAT WE'RE AWARE OF IT WELL IN ADVANCE OF ANYTHING THAT MIGHT HAPPEN.
AND ALSO TO SHOW THAT EVEN WITHOUT THAT, THAT RENEWAL, WE STILL HAVE A FUNDING GAP IN THE GENERAL FUND IN FIRE POLICE.
VIRTUALLY EVERYTHING THAT IS NOT, UM, A DIRECT FEE REVENUE SUCH AS UTILITIES, UM, GENERAL FUND DOESN'T REALLY HAVE AS MUCH AVAILABILITY TO INCREASE ITS REVENUE, ESPECIALLY IF WE ARE FORECASTING A DECREASE IN OUR, OUR, UH, OUR ECONOMY IN THE NEXT FEW YEARS.
THAT'S GONNA GET TOUGHER AND TOUGHER AS WE GO ON.
SO, UH, HATE TO BE THE BEARER OF BAD NEWS, BUT, UM, WHICH IS GOING TO DECREASE OUR CAR AS WELL.
IT'LL, IT'LL DECREASE EVERYTHING.
THE MORE THIS GOES DOWN, THE LESS MONEY YOU'RE GONNA HAVE FOR, UM, FOR REALLY YOUR, YOUR CAR ENDEAVORS OR REALLY ANYTHING.
UM, YOUR QUALITY OF LIFE MEASURES WON'T HAVE ENOUGH, WON'T HAVE AS MUCH MONEY.
IT WON'T HAVE AS MUCH MONEY FOR, UH, FOR STREETS AND ROADS, FOR ANY ASPECT OF WHAT THE CITY OF EDMUND REALLY DOES.
SPECIFICALLY IN TERMS OF THE GENERAL FUND.
THE GENERAL FUND IS YOUR EASILY, EASILY USED MONEY.
IT, IT CAN BE USED FOR PRACTICALLY ANYTHING.
THERE'S NOT AS MUCH RESTRICTIONS ON THE GENERAL FUND.
IT'S NOT TIED TO RATE PAYERS OR ANYTHING ALONG THOSE LINES.
AND IT ALSO HAS A FEW FINES SPECIFICALLY RELATED TO CITY SERVICES.
BUT YOUR LARGEST REVENUE STREAM WITHIN THE GENERAL FUND IS SALES TAX, WHICH IS UNFORTUNATELY VERY VOLATILE.
UM, IT CAN TURN ON A DIME IN, YOU KNOW, A MATTER OF MONTHS.
UM, BUT AS WE'RE LOOKING AT THIS AND TRYING TO BE AS, AS CONSERVATIVE, BUT, UM, REALISTIC AS POSSIBLE, WE TRY TO BRING THIS UP TO YOU BEFORE WE REALLY GET TO A, A DANGEROUS POINT.
UM, IF ANYBODY HAS ANY QUESTIONS ON THE FINANCIAL FORECAST, I CAN ADDRESS THOSE OR CAN CONTINUE.
Y YEAH, JARED, IF YOU GO BACK TO THAT ONE, I TALKED ABOUT THE PROJECTED GROWTH.
I MEAN, WE'RE, WE'RE, WE'RE BEING VERY CONSERVATIVE, HOPEFULLY, LIKE MR. VIN SAID IS, WE'RE OFF AND HOPEFULLY IT MEANS REVENUE COMES BETTER AND THAN EXPECTED.
AND IT MAYBE INFLATION SHRINKS A LITTLE BIT.
WE'RE JUST TRYING TO, THIS, THESE ARE THE NUMBERS WE HAVE TODAY, BUT HOPEFULLY EVERYBODY GOES OUT AND SHOPS, SHOPS LOCALLY AND SPENDS AS MUCH AS THEY HAVE.
ONE THING I'D LIKE TO ADD TO THAT IS THAT WE, EVERYTHING, YOU GOT ONE, ONE THING I WOULD LIKE TO POINT OUT WITH WITH THIS IS, UM, SO THE BUDGETED PERCENT INCREASE FOR THIS FISCAL YEAR FOR 2324 WAS 2%.
UM, WHICH WAS A STILL A CONSERVATIVE ESTIMATE FOR THIS YEAR GOING INTO THIS YEAR EVEN.
'CAUSE WE WERE SEEING NINE PERCENTS AND SOME CRAZY INCREASES OVER THE YEARS.
SO 2% SEEMED VERY CONSERVATIVE AT THE TIME, BUT NOW WE'RE SITTING AT A OVERALL 0.25.
SO IT'S HALF OF THE, THE PERCENT GROWTH THAT WE'RE PROJECTING FOR NEXT YEAR.
WE'RE STILL, WE'RE ALREADY PROJECTING A DOUBLE IN OUR GROWTH FOR NEXT YEAR THAN WE'RE CURRENTLY SEEING IN THIS FISCAL YEAR.
THAT'S JUST SHOWS THE IMPORTANCE OF, OF BEING CONSERVATIVE.
AND JUST LIKE DR. EVANS SAID, THERE'S WITH BUDGETING, YOU, YOU KNOW, YOU'RE GONNA MISS.
BUT THE THING IS, IS WHAT'S MOST IMPORTANT IS TO MAKE SURE THAT YOU'RE NOT MISSING BY SO MUCH THAT YOU'RE HAVING TO REDUCE SERVICES, THAT YOU'RE HAVING TO LOOK INTO THE BUDGET AND MAKE CUTS INTO SOME THINGS THAT COULD REALLY HELP INDIVIDUALS IN THE CITY.
[5. Presentation and Discussion of Fiscal Year 2024-25 City Council, Municipal Court, and Administrative Support Service Departmental Budgets.]
NEXT UP, IF THERE'S NO MORE QUESTIONS ON THE FORECAST, IS THE INDIVIDUAL DEPARTMENT BUDGETS.UM, I'M GONNA TRY TO GO QUICK ON THESE 'CAUSE I KNOW IT'S JUST A BUNCH OF NUMBERS AND IT VERY LITTLE BIT OF INFORMATION.
SO, UH, YOUR BUDGET CITY COUNCIL'S BUDGET, UH, IS IN THE GENERAL FUND.
IT IS FUNDED BY SALES TAX, UH, OVERALL DECREASE, UH, DRIVEN BY DECREASES IN INTERNAL ALLOCATIONS.
THIS IS PRIMARILY YOUR, UH, UH, ADMINISTRATIVE SUPPORT SERVICES, UH, ALLOCATION, WHICH WE'LL GET TO THAT HERE IN A LITTLE BIT.
AND, UH, WHAT THAT TRULY IS, IS JUST YOUR EXPENSE
[01:30:01]
FOR OTHER DEPARTMENTS PROVIDING SERVICES FOR THIS INTERNAL DEPARTMENT.AND I'LL GO A LITTLE BIT FURTHER INTO THAT WHEN WE GET THERE.
UH, THE INCREASED, UH, INCREASED ITEMS WERE SPECIFICALLY RELATED TO CITY COUNCIL AND, UH, TAX ELECTION COSTS WITH THERE BEING, UH, TWO IN THIS NEXT GIVEN YEAR THAT WILL INCREASE YOUR, UH, YOUR ELECTION COSTS, UH, FOR THIS BUDGET IN NEXT YEAR.
UH, MUNICIPAL COURT, UH, OVERALL INCREASED, IT INCREASED DUE TO, UM, THERE WAS A LOT OF SCHEDULING, UH, SCHEDULED COMPUTER REPLACEMENTS, ADDITIONAL, ADDITIONAL NEW TECHNOLOGY FOR THE MOVE TO THE NEW FACILITY IN THE, UH, BEGINNING OF NEXT CALENDAR YEAR.
UH, TWO ADDITIONAL POSITIONS, A BAILIFF AND A CLERK.
UH, I FORGET THE TECHNICAL TITLE, BUT, UM, THAT IS TWO THE TWO POSITIONS.
AND THEN THERE'S ADDITIONAL INCREASE, UH, IN THEIR TRANSFERS TO TRANSFER ALLOCATIONS.
UH, ADMINISTRATIVE SUPPORT SERVICES, UH, GENERAL GOVERNMENT.
SO THIS IS KIND OF THE OVERARCHING, UM, FUND COLLECTION OF, OF WHAT ALL OF, UH, ADMIN SUPPORT SERVICES IS.
YOU CAN SEE THE TRANSFERS AT THE BOTTOM ARE NEGATIVES.
THAT'S BECAUSE THAT IS ACTUALLY A RECONCILIATION OF WHAT THE TOTAL TRANSFER IN OF THE FUNDING FOR THESE DEPARTMENTS IS.
SO THERE'S NOT A LOT THAT'S INDIVIDUALLY BUDGETED WITHIN THIS, THIS FUND OUTSIDE OF THAT RECONCILIATION.
IT'S PRIMARILY KIND OF A RECONCILIATORY AND KIND OF MISCELLANEOUS DEPARTMENT IN A WAY.
UM, THE BIGGEST INCREASE IN THIS, UH, OUTSIDE OF RECONCILIATION WAS THE, UH, BUILDING RENT AND THEN ALSO THE TRANSFER ALLOCATIONS.
UH, THE ALLOCATIONS DID GO UP.
UH, THIS IS BASED OFF OF ACTUAL SPENDING FROM FISCAL YEAR 23, WHICH WOULD'VE BEEN OUR LAST FISCAL YEAR THAT WE ENDED.
UH, CITY CLERK'S BUDGET, UM, INCREASED DUE TO PERSONNEL COSTS AND TRANSFERRED ALLOCATIONS.
UH, NOT A WHOLE LOT CHANGED WITH THIS DEPARTMENT ON THE INCREASE SIDE.
UH, BUT REALLY THE INCREASE WAS PRIMARILY DRIVEN BY THAT ALLOCATION.
NOT NECESSARILY A WHOLE LOT OF CHANGES WITHIN THE DEPARTMENT.
UM, THEN CITY MANAGER'S BUDGETS, UH, INCREASED DUE TO ADDITIONAL ADDITION OF NEW BUILDING PERSONNEL.
ONE FULL-TIME, ONE PART-TIME POSITION.
AND THEN, UH, INCREASE OF THOSE TRANSFERRED ALLOCATIONS.
IF YOU CAN'T TELL, A COMMON THEME WITHIN MOST OF THESE DEPARTMENTS IS THE INCREASE OF THESE TRANSFERRED ALLOCATIONS.
THE MORE DEPARTMENTS RELY ON, UM, OTHER DEPARTMENTS WITHIN THE INTERNAL SERVICE.
INTERNAL SERVICES MEANS THAT THEY'RE GOING TO PAY MORE MONEY, UH, BACK TO OTHER DEPARTMENTS.
AND EVEN THE DEPARTMENTS THAT RECEIVE FUNDS IN THAT MANNER ALSO HAVE TO PAY OUT THOSE FUNDS AS WELL.
SO, ADDITIONAL SOFTWARE, ANYTHING LIKE THAT, NEW COMPUTERS, ALL THAT INCREASES.
BUT THERE IS A SIGNIFICANT LAG TIME ON THAT INCREASE.
UH, FACILITY MAINTENANCE AND, UH, JANITOR SERVICES, UH, DECREASE WAS PRIMARILY DUE TO RESCHEDULING ROOF REPLACEMENTS.
WE HAD THREE BUDGETED FOR THIS NEXT, NEXT FISCAL YEAR.
UM, BUT THE REALITY OF GETTING THOSE ROOFS ACTUALLY REPLACED OVER THE NEXT FISCAL YEAR WAS, UM, UNLIKELY.
SO WE BETTER SCHEDULED THAT OUT.
SO WE'RE NOT PUTTING ALL OF THAT ENCUMBRANCE OR ALL OF THAT, THAT FUNDING POTENTIALLY IN THIS NEXT, UM, NEXT YEAR.
IT'S REALLY PART OF THAT RIGHT SIZING OF THE BUDGET THAT WE HAD TALKED ABOUT, UH, EARLIER IN OUR, OUR MARCH, UH, BUDGET KICKOFF WORKSHOP MARKETING, UM, INCREASED DUE TO, AGAIN, THE TRANSFER ALLOCATIONS.
UH, SOME OF THESE WERE FAIRLY SIGNIFICANT.
UM, THIS IS ONE OF THEM THAT ALMOST WENT UP DOUBLE.
UM, AGAIN, IT'S ALL TIED TO USE OF OTHER DEPARTMENTS, OTHER INTERNAL DEPARTMENTS.
UH, INFORMATION TECHNOLOGY, THIS IS A BIG ONE.
UM, INFORMATION TECHNOLOGY SERVES SERVICES.
EVERY SINGLE DEPARTMENT THAT WE HAVE, WE RELY ON THEM FOR ALL OF OUR COMPUTER EQUIPMENT, OUR SOFTWARE, ANYTHING THAT HAS TO DO WITH TECHNOLOGY, THEY ARE OUR GO-TO.
AND UNFORTUNATELY THAT DOES INCREASE THEIR BUDGET ON A YEAR TO YEAR BASIS BECAUSE THINGS JUST GO HIGHER AND HIGHER.
[01:35:01]
EVERYTHING GETS MORE EXPENSIVE, JUST AS YOU PROBABLY HAVE SEEN WITH CELL PHONES AND ANY OTHER TECHNOLOGY EQUIPMENT THAT YOU PURCHASE IN YOUR OWN HOUSEHOLD.UH, THE SAME KIND OF THING HAPPENS TO, TO THE CITY.
SO, UH, SOME OF THE BIGGER INCREASES.
THE ADDITION OF THREE ADDITIONAL PERSONNEL, UH, TWO POSITION RECLASSIFICATIONS, ADDITION OF CITYWIDE SOFTWARE NEEDS AND SLIGHTLY HIGHER TRANSFER ALLOCATIONS.
UH, LEGAL SERVICES, UH, THIS ONE INCREASES WERE PRIMARILY DUE TO ONE ADDITIONAL POSITION, UH, HIGHER OUTSIDE COUNSEL, BILLING RATES, AND ALSO THE TRANSFER ALLOCATIONS.
UH, YOU'VE ALREADY SEEN A FEW OF THESE, BUT I JUST WANTED TO REITERATE THAT ALL OF THIS IS PART OF THAT.
ADMINISTRATIVE SUPPORT SERVICES, THOSE GROUPING OF DEPARTMENTS THAT, UM, PRIMARILY SERVICE DEPARTMENTS WITHIN THE CITY.
UH, THEIR INCREASES WERE PRIMARILY DUE TO THE ADDITION OF TWO ADDITIONAL POSITIONS AND TRANSFERRED ALLOCATIONS.
UH, WAREHOUSE, A DECREASE DUE TO RIGHT SIZING OF DEPARTMENTAL BUDGET AND TRANSFERRED ALLOCATIONS.
UH, CENTRAL COMMUNICATION, UH, INCREASE DUE TO TRANSFERRED ALLOCATIONS.
UM, IT'S PRIMARILY, UH, WELL IT IS EXCEPT FOR A VERY TINY PERCENT FUNDED BY PUBLIC SAFETY BECAUSE OF THE NATURE OF WHAT THEY DO.
IT IS THEIR INCREASE WAS SPECIFICALLY TIED TO, UH, SCHEDULED COMPUTER REPLACEMENTS AND TRANSFERRED ALLOCATIONS.
SO THE MORE CAPITAL SIDE OF ENGINEERING'S BUDGET, WHICH YOU'VE ALREADY HEARD ABOUT BEFORE AS WELL.
BUT, UH, THEY HAVE AN ADDITIONAL FOUR POSITIONS, UH, IN THIS BUDGET.
UH, POSITION RESTRUCTURING AND RE-CLASSIFICATION, UH, SCHEDULED COMPUTER REPLACEMENTS AND HIGHER TRANSFERRED ALLOCATIONS AS WELL.
UH, THEIR ENGINEERING INSPECTION SIDE OF THINGS, WHICH IS MORE FEES AND CAPITAL FUNDED, UH, INCREASED DUE TO ADDITION OF ONE POSITION.
UH, ADDITIONAL TRAINING IN TRAVEL NEEDS AND TRANSFERRED ALLOCATIONS.
FINANCE, UH, DECREASED DUE TO DEPARTMENT'S RIGHT SIZING OF ACTUAL EXPENSES AND TRANSFERRED ALLOCATIONS.
HUMAN RESOURCES INCREASED DUE TO, UH, TRANSFERRED ALLOCATIONS.
PRIMARILY ALL ALLOCATIONS OF UKG SOFTWARE, UH, THAT THEY ACQUIRED LAST YEAR THAT IS HITTING THIS YEAR.
UH, AND THEN UCS UTILITY CUSTOMER SERVICE, UH, THAT IS PRIMARILY FUNDED BY UTILITIES, UH, BY WATER WASTEWATER.
THE REST OF THE UTILITIES INCREASED DUE TO SCHEDULED COMPUTER REPLACEMENT, UH, INTERNAL INTEREST PAID ON UTILITY TO UTILITY DEPARTMENTS AND TRANSFERRED ALLOCATIONS.
UM, DOES ANYBODY HAVE ANY QUESTIONS ON ANY OF THE INDIVIDUAL BUDGETS? DID I GET MY NUMBERS CORRECT? 5, 7, 8, 12 NEW POSITIONS? YES.
UM, WITHIN THIS, YEAH, I THINK IT'S LIKE 12 OR 13, SOMETHING LIKE THAT.
UM, SO I REMEMBER BEFORE A LONG TIME AGO, IT, IT WOULD, WHEN WE, WHEN THERE WAS A REQUEST FOR A NEW ALLOCATION OF, OF A, OF A SLOT PERSON AT TE THAT PERSON THAT THAT REQUEST HAD TO GO THROUGH A ATOR AND IT, IT, IT WAS ALMOST AN ACT OF IT GUIDE TO GET NEW POSITION.
AND, AND, AND SO NOW I'M, I'M ASSUMING THIS IS SIMILAR TO THAT SAME PROCESS, BUT THIS IS JUST SHOWING THE NEED THAT WE HAVING AS OUR COMMUNITY HAS EXPANDED TO FROM THESE POSITIONS ARE PRIMARILY GROWTH RELATED.
THEY, THEY'RE RELATED TO PRO PROVIDING BETTER SERVICE, MOST OF THESE POSITIONS.
UM, SO FOR INSTANCE, WITH ENGINEERING'S POSITIONS THAT A LOT OF WHAT THEIRS IS RELATED TO IS WE'RE BEING ASKED TO DO MORE IN CAPITAL AND MORE WITH THE FUNDS THAT WE HAVE AND THEIRS ARE SPECIFICALLY TIED TO, TO THAT GROWTH.
UH, EVEN IT, I MEAN THEIR, THEIR POSITIONS ARE TO
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BETTER HELP THE DEPARTMENTS, UH, DO THEIR JOBS ON A REGULAR BASIS.UM, ALL THESE POSITIONS REALLY ARE IN SOME FORM OR FASHION RELATED TO GROWTH AND THE NEED THAT WE'VE GOT TO, YOU KNOW, MATCH WHAT THE COMMUNITY'S EXPECTATION AND, AND ALSO WHAT, UM, WHAT WE HAVE TO, TO DO TO KEEP AND MAINTAIN OUR SERVICES AT THE LEVEL THAT, UM, THAT COUNSEL AND THE CITIZENS EXPECT.
[6. Presentation and Discussion of Potential Uses for Approximately $10.3 Million in Available One-Time Funding.]
AND PROBABLY THE PART OF THIS PRESENTATION Y'ALL ARE LOOKING FORWARD TO MOST, UM, THE OTHER BUDGET CONSIDERATIONS PRIMARILY, UH, CONSIDERATION OF TOTAL AVAILABLE ONE TIME OVER 10% GENERAL FUND RESERVES OF 10.3, ALMOST 10.4 MILLION.UM, THERE ARE, GENERALLY SPEAKING TWO OPTIONS.
EITHER BANK THOSE RESERVES, UH, FOR FUTURE YEARS OR, UM, SELECT CERTAIN, UH, ONE TO TIME USES FOR THOSE FUNDS.
SO BASICALLY WHAT THIS IS, IS IT IS OVER THE 10% POLICY LEVEL THAT WE HAVE ESTABLISHED THAT WE'D LIKE TO KEEP WITH GENERAL FUND RESERVES.
WE HAVE THIS ADDITIONAL $10.3 MILLION THAT IF YOU SO WISH, UH, BY ANY MEANS WE CAN INCORPORATE INTO THE BUDGET AND FIGURE SOMETHING OUT WITH THAT.
UM, WE SET FORTH A FEW, UH, POTENTIAL OPTIONS.
WE HAD MENTIONED A FEW OF THESE IN THE BUDGET KICKOFF, PRIMARILY PELICAN BAY IMPROVEMENTS AND THEN STREET MAINTENANCE FUNDING.
BOTH OF THOSE OPTIONS ARE ROUGHLY TWO, ROUGHLY $5 MILLION.
UH, PELICAN BAY WOULD EXCEED THAT TOTAL AMOUNT OF MONEY, BUT WE DO HAVE SOME CAPITAL FUNDS, UH, CURRENTLY PLUGGED IN FOR THE REMAINDER OF WHAT THAT WOULD BE.
UM, OR AT LEAST CLOSE TO THAT REMAINDER, UH, STREET MAINTENANCE FUNDING OF $5 MILLION.
THAT WOULD EFFECTIVELY DOUBLE WHAT WE HAVE CURRENTLY BUDGETED FOR STREET MAINTENANCE, UM, FOR THIS NEXT FISCAL YEAR.
YOU MEAN BRINGING IT, I THINK IT'S AT FOUR AND CHANGE RIGHT NOW? YEAH.
SO BRING IT FROM FOUR AND CHANGE TO FIVE OR BRING IT FROM TO 10 TO 10.
YES, WE HAVE, WE CURRENTLY HAVE 5 MILLION PROGRAMMED IN.
AND THEN OF COURSE THE ADDITIONAL, UH, CLARK FUNDING IF YOU SO WISH.
AND THEN ANY OTHER, UM, COUNCIL PRIORITIES OR CITIZEN PRIORITIES THAT YOU MAY KNOW OF OR HAVE IN YOUR BACK POCKET THAT YOU, THAT COUNCIL WOULD LIKE TO ADDRESS? UH, THIS FUND, THESE FUNDS AND REALLY EVERY, THE FUNDS THAT THE CITY HAS IS UP TO COUNCIL'S DISCRETION.
AND THIS IS, UM, THIS IS JUST A POT THAT YOU HAVE TO, TO DO WITH BY THE WAY.
I WAS JUST GONNA ASK A QUESTION, BUT GO AHEAD SIR.
I, UH, DOES THAT $10 MILLION, DOES THAT INCLUDE THE 1.8 UH, FROM WASTE? IT DOES NOT.
SO INCLUDING THAT, THAT WOULD BE AN ADDITIONAL, UH, I MEAN YOU'D HAVE ROUGHLY $12 MILLION TO DO WITH AT THAT POINT.
AND THEN I WILL CONTINUE ON THIS UNLESS CONVERSATION.
UH, ANOTHER SIDE OF THIS THAT WE WANTED TO ADDRESS WAS THE DRAINAGE FEES, WELL SOLID WASTE RESERVE THAT YOU JUST MENTIONED.
UH, ONE OF THE THINGS THAT WE WANTED TO ADDRESS THERE WAS I THINK SOME MISCONCEPTIONS ON SOME SLIDES THAT HAD BEEN PRESENTED BEFORE.
THERE'S TOTAL STATED NEEDS WITH THE CONTRACT OR 17.2 MILLION AND THEIR AVAILABLE RESERVE WAS 11.7, WHICH LEFT 5.4 OR 5.5, UM, REMAINING THAT THEY WOULD NEED TO MEET THOSE STATED NEEDS WITHOUT THE CONTRACT.
UH, THE STATED NEEDS WOULD COME TO 9.8 OR CLOSE TO 9.9, WHICH WOULD LEAVE THE 1.8 THAT COUNCILMAN ROBBINS REFERENCED.
AND THEN DRAINAGE UTILITY FEES.
SO ONE THING THAT WAS BROUGHT UP PREVIOUSLY WAS, UM, POTENTIAL INCREASE OF THE DRAINAGE UTILITY FEES.
UH, THESE ARE SOME POTENTIAL, UM, NEEDS AND PROJECTS THAT DRAINAGE NEEDS TO GET TAKEN CARE OF AND WOULD BE ADDRESSED BY ANY KIND OF, UH, DRAINAGE UTILITY FEE INCREASE.
UM, MAPPING GIS OF CURRENT ASSETS,
[01:45:02]
UH, CHISHOLM CREEK FLOOD STUDY INFRASTRUCTURE AND REDEVELOP REDEVELOPING AREAS, REHABILITATION OF AGING INFRASTRUCTURE, ABATING, FLOOD PRONE, UH, FLOOD PRONE PROPERTIES, EXPECTED STATE AND FEDERAL REGULATIONS.UM, ALL OF THESE COME TO THE ONE TIME EXPENSES ON THESE ITEMS COME TO $46 MILLION.
AND THEN THE STATED, UM, REOCCURRING EXPENSE OF SOME OF THESE ITEMS, AND I CAN READ THESE OFF, UM, IS ABOUT FIVE, UH, $3.5 MILLION PER YEAR.
SO THE ONE TIME PROJECTS, UM, OR AT LEAST THE ONES SPECIFICALLY STATED AS ONE TIME, THE GIS UH, MAPPING OF CURRENT OF THE CURRENT SYSTEM IS TWO TO 3 MILLION CHISHOLM CREEK FLOOD STUDIES ABOUT, UH, TWO TO 3 MILLION.
INFRASTRUCTURE IN REDEVELOPING AREAS IS ABOUT 40 MILLION.
UH, REHABILITATION OF AGING INFRASTRUCTURE, UH, WOULD COST ABOUT 2 MILLION A YEAR.
UM, ABATING FLOOD PRONE PROPERTIES IS ABOUT HALF A MILLION A YEAR.
AND THEN THE, UH, THE ADDITIONAL FUNDS REQUIRED TO MEET, UM, EXPECTED STATE AND FEDERAL REGULATIONS WOULD ADD AN ADDITIONAL MILLION YEAR MILLION DOLLARS A YEAR IN EXPENSE.
AND JUST TO, UH, COVER THAT, THE ACTUAL DRAINAGE UTILITY FEES, CURRENT FEES, UH, ARE $3 FOR RESIDENTIAL SINGLE FAMILY, UH, ONE 50 RESIDENTIAL MULTIFAMILY, AND THEN COMMERCIAL PER ESU OR EQUIVALENT SERVICE UNITS OF $3.
UH, THE PROPOSED INCREASE, AND THIS IS NOT BRINGING IT FORWARD AS AT THIS TIME, UH, FOR APPROVAL, BUT JUST WHAT HAS BEEN STATED WAS OR RECOMMENDED WAS THAT $9, UH, FLAT, UM, THAT WOULD ROUGHLY BY ROUGHLY GENERATE AN ADDITIONAL ALMOST $4 MILLION IN REVENUE IF, UH, OUR CURRENT REVENUE STREAMS STAY AS, AS THEY CURRENTLY ARE FOR STORMWATER OR DRAINAGE.
IT WAS ONE OF THE THINGS WE'VE SEEN IN, IN, UH, STORMWATER MEETINGS IS THAT OUR, UH, DRAINAGE FEE IS, IS NOT ADEQUATE TO MEET IT, THE DEMAND AND MORE AND MORE, UH, PRESSURES BEING PUT ON STORMWATER.
UH, AS WE, AS YOU'VE UH, LISTED HERE IN SOME OF THESE ITEMS, UH, ANY REDEVELOPMENT OR, UH, OR JUST THE, YOUR NEIGHBOR CHANGING WHAT THEY HAVE IN THEIR BACKYARD CHANGES THE FLOW OF WATER IN TOWN.
AND, AND, AND PEOPLE, SOME PEOPLE DON'T REALIZE THAT YEP.
THAT THAT SHED OR THAT ABOVEGROUND POOL THERE HAS CHANGED, CHANGED THE FLOW.
YEAH, I MEAN I'D SAY THE ONE THING ON COUNCIL THAT'S HAS SURPRISED ME IN MY FIRST YEAR IS, UH, JUST THE NUMBER OF CALLS I GET AROUND WASTEWATER, STORM WATER, POTENTIAL FLOODING, POOLING ISSUES, OLD CODE THAT NOW HAS BEEN UPDATED THAT WOULDN'T BE ALLOWED UNDER OUR CURRENT SYSTEM AND ALL THOSE THINGS.
SO IF I DO PUBLIC MATH, WHICH FOR ME IS SCARY, UM, IF, UH, INCREASE TO NINE WOULD BRING A SIX, THEN THAT WOULD EQUATE TO OUR $3.
UH, I THINK ONE OF THE CHALLENGES IS, AND IT HAS TO DO, UM, I LOVE THAT SCOTT HAS BROUGHT UP OTHER FEES AND WE'RE COMMITTED TO LOOKING AT 'EM MORE OFTEN.
'CAUSE THEN I THINK WE JUST PUT OURSELVES IN A PICKLE JAR, WHICH IS, SHOOT, IT'S BEEN, YOU KNOW, IT'S 2024.
IT HASN'T BEEN SINCE 2007 SINCE ANYONE BROUGHT THIS UP FOR A VOTE OR A DISCUSSION.
SO WE'RE KIND OF WAY BEHIND ON THE WHEEL.
SO AS FAR AS THIS GOES, UM, COULD THIS BE A PART OF OUR CURRENT BUDGET? I'M NOT SAYING I'M COMFORTABLE WITH NINE, BUT IS IT, OR DO WE, LIKE, COULD WE DO IT AS A PART OF OUR NEW BUDGET, COME UP WITH SOME NUMBER THAT WE'RE COMFORTABLE WITH OR SOME RECOGNITION? YEAH, WE'D LIKE SOME DIRECTION TO HOW TO PROCEED.
WE, WE THINK IT'S READY TO DO SOMETHING.
OBVIOUSLY WE'D LIKE TO HAVE SOME COUNCIL DISCUSSION.
IS THAT APPROPRIATE? IS THE $9 THAN THE AMOUNT OR DO YOU WANT TO STAGGER THAT OVER A COUPLE YEARS? MAYBE IT'S 3 6 9.
WE'RE JUST, I THINK IT'S WORTH TO A POINT WHERE WE'VE HAD ENOUGH DISCUSSION, SHARED IT, BELIEVE IT.
RANDY, DID WE GO TO DIRT COMMITTEE ON THIS AS WELL? UH, WE HAVE NOT BECAUSE IT'S PAID BY RAY PARIS.
SO YEAH, ULTIMATELY THIS, THIS WORKSHOP IS A LOT OF WHAT WE'RE BRINGING TO YOU IS, IS JUST FOR GUIDANCE AS TO WHAT YOU WOULD MAYBE POTENTIALLY LIKE TO SEE FUTURE.
I MEAN, THIS ISN'T THE BUDGET HEARING, BUT UM, YOU KNOW, THE MORE
[01:50:01]
COMMENTS YOU MAY MAKE, THE MORE WE CAN KIND OF TAILOR EVERYTHING FOR THE BUDGET HEARING AND THEN ALSO FOR ADOPTION TO MATCH YOUR PRIORITIES AND WHAT Y'ALL ARE WANTING TO DO WITH THIS, THIS NEXT YEAR'S BUDGET WITH WHAT WE CURRENTLY HAVE AVAILABLE.SO FOR INSTANCE, IF WE WANT TO, IF COUNSEL SAID LET'S MOVE FORWARD WITH WHATEVER LEVEL, THEN IDEALLY, IF THAT WAS THE DETERMINATION TODAY, THEN WE COULD GO BACK TO OUR BUDGET AND SAY, HEY, IF WE ARE GONNA PROJECT AN ADDITIONAL MILLION AND A HALF NEXT YEAR, THEN WE'D BUDGET PROJECTS FOR THE ADDITIONAL MILLION AND A HALF TO, TO START THE WORK ON.
I MEAN THE NEED IS DEFINITELY THERE.
I, MY CHALLENGE WOULD BE, YOU KNOW, YOU GO TO RATE PAYER TO SAY, HEY, SET THREE ON THERE, WE'RE GONNA CHANGE IT TO A NINE.
I MEAN, EVERYONE'S UNDER PRESSURE.
I'M, I'M UNDER MORE THE MINDSET OF COMING UP WITH SOME AMOUNT.
BUT THEN WHAT I WOULD LIKE TO DO IS, YOU KNOW, EVERY YEAR PUT IN A QUARTER 50 CENTS OR SOMETHING OVER A PERIOD OF TIME SO THERE'S A GRADUAL UPTICK OR OVER SOME PERIOD OF TIME SO IT CAN BE ABSORBED.
UM, THAT'S JUST MY PERSONAL PREFERENCE.
UH, SO, BUT I, I DEFINITELY THINK WE NEED TO HAVE THE CONVERSATION AND NOT KICK THE CAN DOWN THE ROAD.
'CAUSE 2007 TO NOW HAS GOTTEN US TO A SPOT WHERE WE JUST, THE NUMBER OF DEFER PROJECTS FOR RESIDENTS THAT NEED SOME THINGS TO ASSIST WITH SOME OF THEIR FLOODING IS PRETTY, IS PRETTY OVERWHELMING.
WELL, AND THAT GAP IS ONLY GONNA GET BIGGER IS EVERY, EVERY MEETING.
SO IS THAT POSSIBLE? LIKE, IS IT, DO WE NEED, I'M JUST MR. MAYOR, CITY MANAGER, I'M JUST TRYING TO THINK OF IF WE DO, IF WE COLLECTIVELY AGREE THAT SOMETHING NEEDS TO BE DONE, WE MIGHT DISAGREE IN THE NUMBER OR PERCENT INCREASE OR HOWEVER WE DO IT, BUT IS IT POSSIBLE TO BE IN A SPOT WHERE WE CAN DO IT WITH EVERYTHING THAT WE HAVE ON OUR PLATE FOR THIS BUDGET? HONESTLY, UM, I'M CURRENTLY WORKING ON A DRAINAGE MODEL AS IT IS.
UM, I CAN BRING UP SOME DI DIFFERENT OPTIONS, DIFFERENT SCENARIOS OF WHAT THAT MAY LOOK LIKE IT WITH DRAINAGE DEPARTMENT TO PUT TOGETHER WHAT ESSENTIALLY WHAT COULD BE DONE, WHAT WOULD BE, UH, A JUST POTENTIAL OPTIONS, WHAT'S REASONABLE, RATIONAL, AND NOT A, UM, I MEAN, MAYBE THEY DO COME BACK WITH 9% BECAUSE MANY OF THE OTHER COMMUNITIES IN OKLAHOMA ARE JUMPING TO EVEN HIGHER THAN THIS NINE OR NOT 9%, $9 JUMPING TO HIGHER THAN $9.
BUT WE CAN BRING YOU SOME OPTIONS FOR, UH, THE, UH, BUDGET HEARING.
I MEAN, THAT'S COMPLETELY DOABLE.
SO PART OF THAT SCENARIO IS ALSO BRING, BRINGING BACK THE OPTIONS IS ALSO THAT BE USED TO HELP, UH, EDUCATE THE COMMUNITY OF THE NEED.
JUST NOT SAYING THAT WE, WE HAVEN'T TOUCHED THIS FE SINCE 2007, BUT THE HELP EDUCATE TO SHOW WHERE THOSE, UH, DOLLARS ARE GONNA GO, WHAT'S NEEDED, UH, BECAUSE WE ARE HAVING ISSUES ON, IT'S JUST NOT ONE SIDE OF TOWN OR THE EAST SIDE OF WEST, IT'S, IT'S THE ENTIRE COMMUNITY.
UH, WE'RE HAVING DRAINAGE AND THEN WE'RE ALSO SEEING A, A LARGER REQUEST OF, UH, THERE'S LAND THAT'S ACTUALLY IN THE FLOOD AND WE ARE GETTING CREATIVE ON HOW TO USE THIS FLOOD LAND NOW.
AND SO THAT, THAT ALL ADDS TO, TO, TO THE STRESS THAT'S BEING PUT ON OUR, OUR STORM WATER.
SO I LIKE THE IDEA OF OF, OF COMING UP WITH THE EXAMPLES, FIGURING OUT A MODEL TO INCREASE OVER TIME AND, UM, HELP EDUCATE THE COMMUNITY.
THEN ALSO THE HELP WITH THE REST OF THE, UH, STAFF WITH THE, WITH THEIR PLANNING AS, AS MORE DEVELOPMENT COMES INTO TOWN AND, AND HOW IS THAT'S GOING TO AFFECT US.
SO, SO WE CAN MAKE, WE CAN MAKE THAT PART OF OUR, OUR BUDGET WORKSHOP.
OUR NOT BUDGET WORKSHOP, OUR BUDGET HEARING, HEARING, PUBLIC HEARING ABOUT OPTIONS TO CONSIDER.
'CAUSE ONE OF THE GOALS IS WE, WE DON'T WANT TO IDEALLY IS NOT TO PROVE A BUDGET.
AND THEN YOU HAVE THESE RATES THAT KIND OF RIPPLE THROUGH THE YEAR AND YOU'RE CONSIDERING 'EM OFF BUDGET CYCLE BECAUSE THEN WE'RE NOT HAVING THE OPPORTUNITY TO SAY IF, FOR EXAMPLE, THE CITY COUNCIL SIZE TO DO A RATE INCREASE OR WHATEVER, I CAN'T REALLY BUDGET FOR ACTUAL PROJECTS UNTIL THE FOLLOWING YEAR.
VERSUS IF WE THINK WE'RE GONNA DO SOMETHING, THEN WE CAN PUT START TO PUT SOME PROJECTS OR EFFORTS INTO THE BUDGET FOR THIS YEAR.
SO WE'LL COME BACK LOOKING AT KEITH, KEITH'S, KEITH'S GOT SOME WORK WITH, WITH JARED TO START CLAIMS THE SCENARIOS.
MR. CITY MANAGER, ARE WE GONNA HAVE THE UH, UH, THE INFORMATION ON PELICAN BAY? I THINK IT MIGHT BE TODAY.
THAT WAY WE CAN MAKE THAT DECISION IF THAT'S SOMETHING WE WANT OUT.
YEAH, I I'D LOVE TO SAY FIVE MILLION'S GONNA BE IT, BUT IT'S NOT THE PELICAN'S GOT A BIG G
[01:55:01]
WE'RE TRYING TO DO WITH THAT DISCRETIONARY ONE TIME AND, AND WE JUST CALL IT ONE TIME 'CAUSE IT WON'T BE THERE NEXT YEAR.BUT BECAUSE WE WERE ABLE TO FIND THIS, BECAUSE WE REALLY SCRUBBED OUR BUDGETS THIS YEAR, WE REALLY WENT TO WHAT'S THE ACTUALS YOU SPENT LAST YEAR VERSUS WHAT YOU PROJECT NEXT YEAR.
YOU KNOW, SOMETIMES WE'RE OVER AMBITIOUS, WE CAN DO THREE ROOF REPAIRS WHEN REALLY YOU CAN'T EVEN GET THREE ROOF REPAIRS THROUGH OUR, OUR PROCESS.
SO IT'S NOT LIKE, HEY, THERE'S GONNA BE 10.3 NEXT YEAR.
NOW IF SALES TAX SUCCEEDS, THERE MAY BE SOME, BUT THERE'S AN OPPORTUNITY MAYBE TO DO ONE TIME, YOU KNOW, SOME OF THOSE THINGS WE'RE, WE'RE COMING TO THE END FOR EXAMPLE OF CIP DOLLARS BECAUSE OUR C P'S GONNA DROP OFF.
IT'S NOT GONNA BE ENOUGH TO DO A PELICAN BAY ALL LOAN BY CIP DOLLARS.
SO AS AN OPPORTUNITY TO DO ONE TIME DISCRETIONARY FUNDING TO, TO SOFTEN THAT IMPACT.
ALRIGHT, SO WHAT DO WE HAVE HERE? PRESENTATION AND DISCUSSION OF POTENTIAL.
THAT WAS ALREADY, THAT WAS IT.
WELL, BUT IT HURTS IN A GOOD WAY BECAUSE WE HAVE OPPORTUNITY AGAIN TO MAKE SOME DECISIONS ON THE HEALTH AND GROWTH OF OUR COMMUNITY AS IT GO FORWARD.
AND I TOOK A PICTURE THIS AFTERNOON, THERE WAS THREE CRANES IN THE AIR OVER HERE.
AND I CHALLENGE YOU TO GO TO OTHER COMMUNITIES AROUND OKLAHOMA TO FIND AT ONE JOB SITE WHERE THEY HAVE THREE CRANES, LET ALONE THE OTHER CRANES THAT ARE UP DEVELOPING.
SO WE'RE A GROWING COMMUNITY AND THESE ARE, THESE ARE GOOD HEADACHES TO HAVE.
AND, UM, I APPRECIATE THAT, APPRECIATE ALL THE INFORMATION AND ALL THE HARD WORK.
UM, LOOKS LIKE OUR WORKSHOP'S GONNA GET IS GONNA BE VERY INTENSE IN, IN A COUPLE WEEKS.
UM, ANY OTHER QUESTIONS, COMMENTS FROM COUNSEL? WELL, STAFF, ONCE AGAIN, THANK YOU FOR ALL YOUR HARD WORK AND THE, THE CHANGES THAT WE'RE MAKING AS WE MOVE FORWARD AS A COMMUNITY.
UH, YOU, AS YOU ALL KNOW, YOU ARE AN INTEGRAL PART OF THAT, UH, EACH AND EVERY DAY.
WITHOUT YOU, WE DON'T DO ANYTHING.
SO HAVING SAID THAT, I'LL CONCLUDE THIS WORKSHOP.