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[1. Call to Order of the Edmond City Council Meeting.]
CHATTING.I'D LIKE TO CALL THE EDMOND CITY COUNCIL TO ORDER FOR OUR SPECIAL MEETING, THE SECOND FISCAL YEAR, 20 25, 20 26 BUDGET HEARING.
UM, FOR THOSE IN THE AUDIENCE TODAY, PLEASE BE AWARE THERE ARE MEETING MATERIALS AVAILABLE IN THE LOBBY, INCLUDING AGENDAS, MEETING RULES, AND OTHER GENERAL INFORMATION.
ALL OF THOSE MATERIALS ARE, ARE ALSO AVAILABLE ON THE CITY'S WEBSITE@EDMONDOK.GOV.
[2. Public Hearing, pursuant to 11 O.S. § 17-208, on the Proposed Budget and Financial Plan for Fiscal Year 2025-26, containing the General Fund, Special Revenue Funds, Capital Project Funds, Internal Service Funds, Public Works Authority Utility Funds, and Other Enterprise Funds, to include: Presentation and Discussion of the Proposed Budget and Financial Plan for Fiscal Year 2025-26; Receive Public Comments, Recommendations, or Other Information regarding the Proposed Budget and Financial Plan for Fiscal Year 2025-26; Discussion and Consideration of a Purpose Based Budget Format for the Proposed Budget and Financial Plan for Fiscal Year 2025-26; and Discussion and Consideration of Potential Amendments to the Proposed Budget and Financial Plan for Fiscal Year 2025-26.]
AGENDA ITEM TWO IS SPECIAL, IS THE SECOND PUBLIC HEARING ON THE PROPOSED BUDGET AND FINANCIAL PLAN FOR THE FISCAL YEAR 20 25, 20 26.MS. PANIS CITY'S FINANCE DIRECTOR IS RECOGNIZED FOR A PRESENTATION.
REAL QUICK BEFORE SHE JUMPS IN.
UM, I, I WANNA TAKE THE TIME TO THANK KATHY AND HER TEAM.
UH, THEY'VE DONE A LOT OF HARD WORK TO GET US TO THIS POINT.
UH, THIS PROCESS, UH, OFFICIALLY STARTED IN FEBRUARY, BUT STARTS LONG BEFORE THEN.
UH, I ALSO WANNA THANK ROSS, THE CITY TREASURER, AND REALLY, I WANNA THANK ALL THE DIRECTORS WHO WERE TASKED WITH, UH, PROVIDING A FLAT BUDGET AND, UH, MAKING AS MANY REDUCTIONS AS THEY CAN.
SO, UH, THAT'S WHY WE'RE IN A FAIRLY GOOD SPOT NOW, IN MY OPINION, WHERE WE'RE AT.
UH, JUST KIND OF AS A REMINDER ON THE NEXT SLIDE, UH, WE, WE DO HAVE A LIEN BUDGET, LIKE I JUST SPOKE ABOUT.
UH, RIGHT NOW IT'S AT $413 MILLION OF EXPENSES.
THAT'S A REDUCTION OF $40 MILLION FROM LAST YEAR.
UH, WE ARE PROPOSING A HIRING FREEZE FOR ALL POSITIONS EXCEPT FOR PUBLIC SAFETY AND UTILITIES.
UH, ALL OF THIS IS BECAUSE WE, UH, ANTICIPATE ZERO GROWTH IN OUR SALES TAX COMPARED TO LAST YEAR.
UH, THAT'S KIND OF THE TREND WE'RE SEEING, AND WE WILL, UH, TAP OUR RESERVES TO KIND OF MAKE THE, UH, MAKE ENDS MEET AND KEEP OUR SERVICES AT AN ACCEPTABLE LEVEL.
SO, WITH THAT, I'LL TURN IT OVER TO KATHY.
SHE'S THE EXPERT HERE, AND I'LL BE QUIET.
THANK YOU AND GOOD AFTERNOON, UH, MAYOR AND COUNCIL.
WE'VE HAD 1, 2, 3, 4, 5 DIFFERENT TYPES OF WORKSHOPS OR HEARINGS.
THIS IS OUR SECOND PUBLIC HEARING ON THE BUDGET, AND IT'S THE PURPOSES TO ADDRESS QUESTIONS THAT THE COUNSEL HAD LAST TIME.
SO I JUST TRY TO SUMMARIZE THE, THE QUESTIONS THAT YOU HAVE.
AND I DO HAVE SLIDES FOR EACH.
SO WE'LL BE TALKING ABOUT THE $40 MILLION DECREASE IN BUDGETED EXPENSES FROM FISCAL YEAR 25 TO 26.
WE'LL, UH, EXPLAIN THE $22 MILLION IN REVENUE CHARGES DIFFERENCE FROM, UH, 25 TO 26 OR 25 TO WHAT WE THINK WE'RE GOING TO BE AT THE END OF 25.
EXPLANATION OF THE DETAIL OF THE RESERVES THAT WE'RE USING OF 57 MILLION EXP EXPLANATION OF THE DETAIL OF EXPENSES OF 147 MILLION THAT, THAT ARE IN OTHER SERVICES AND CHARGES.
AND EXPLAIN TWO OF THE ITEMS ON THE VERY LAST, UH, AT THE END OF THE LAST DISCUSSION.
WHAT IS INCLUDED IN ECONOMIC INFRASTRUCTURE AND, UM, OTHER ACTIVITIES IN OUR EXPENSES.
THE FIRST ONE WAS OUR, THE QUESTION WAS WHY DID OUR EXPENSES DECREASE BY $40 MILLION FROM 25 TO 26? AND WHAT I'VE DONE, I'LL ACTUALLY GO BACK HERE.
WE HAVE SIX DIFFERENT TYPES OF FUNDS OR GROUPS OF FUNDS.
SO GENERAL REVENUE, SPECIAL REVENUE, UM, CIP, UTILITY, OTHER ENTERPRISE AND INTERNAL SERVICE FUNDS.
SO IN THOSE GROUPS, ALL THOSE SIX GROUPS, EACH ONE OF THE NEXT SLIDES, I'LL SHOW YOU WHAT IT IS, BUT GENERAL FUND WENT DOWN 1.1 MILLION SPECIAL REVENUE FUNDS WENT DOWN 1.1 MILLION, CIP IS THE BIG ONE, AND IT WENT DOWN 54 MILLION.
UH, UTILITIES WENT UP ALMOST 25 MILLION.
OTHER ENTERPRISE FUNDS ALMOST BREAK EVEN, BUT THEY WENT UP A LITTLE BIT AT 344,000 AND INTERNAL SERVICE FUNDS WENT DOWN 9 MILLION.
SO THAT'S WHAT EACH OF THESE SLIDES SHOWS.
SO I'LL JUST KIND OF BE TALKING ABOUT THIS AND I'M GONNA HIT ON THE HIGHLIGHTS OF EACH ONE OF THESE.
AND PLEASE STOP ME IF YOU HAVE QUESTIONS.
WE HAVE STAFF HERE TO ANSWER ANYTHING.
SO ANYTIME YOU HAVE A QUESTION, JUST HOLLER AND WE'LL HAVE SOMEBODY ELSE COME UP IF I CAN'T EXPLAIN IT.
SO BASICALLY ON THESE SLIDES, I'VE JUST REALLY HIT THE CAPITAL OUTLAY.
THIS IS GENERAL FUND AND, UM, BASICALLY STREET AND ALLEY.
SO THAT'S OUR REPAIRS, OUR POTHOLE REPAIRS, AND OUR TRAFFIC LIGHT REPAIRS, THAT TYPE OF THING WENT DOWN FROM 1.2 MILLION LAST THIS YEAR, THIS CURRENT YEAR, WE'RE IN TILL 700,000 NEXT YEAR.
AND THAT'S BECAUSE WE HAVE BEEN USING RESERVES IN THE PAST TO USE THEM UP FOR REPAIRS.
AND THE 700,000 IS WHAT WE ACTUALLY BRING IN, IN OUR VEHICLE TAX
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AND OUR GAS TAX.AND SO WE'VE JUST BUDGETED WHAT WE BRING IN IN REVENUE AND THAT'S WHY IT WENT DOWN.
AND THEN SENIOR CITIZENS CENTER JUST HAD SOME EQUIPMENT THAT THEY BOUGHT LAST YEAR AND THAT DON'T HAVE TO PAY FOR THIS YEAR.
UM, SO THE NEXT ONE IS SPECIAL REVENUE.
THIS IS, UM, WE WENT DOWN 6 MILLION IN CAPITAL OUTLAY.
ONCE AGAIN, THAT'S THE BIGGEST ITEM.
THEY DO HAVE SOME PERSONAL SERVICES HERE, WE'LL DISCUSS A LITTLE BIT LATER.
BUT FOR THEIR CAPITAL OUTLAY, AND THIS IS BUDGET YEAR TO BUDGET YEAR.
SO ARPA IN 25, IN FISCAL YEAR 25 RIGHT NOW, THAT WAS THE LAST YEAR THAT WE COULD ENCUMBER IT.
SO BY 1231 OF 24, WHICH IS TECHNICALLY HALF OF THIS YEAR, WE HAD TO HAVE EVERYTHING ENCUMBERED.
AND THEN WE HAVE TO HAVE IT ALL SPENT BY 12 31 26.
SO THIS 4 MILLION WAS BUDGETED IN FISCAL YEAR 25, AND THEN WE'RE DONE.
SO THAT'S THE END OF OUR ARPA BUDGET.
AND THEN POLICE HAD A TRAINING FACILITY BUDGETED IN, UH, 25, AND THEY DIDN'T, YOU DON'T BUDGET IT TWICE.
SO IF YOU ENCUMBER IT, IT ROLLS OVER.
BUT THAT'S THE BIG DIFFERENCE THERE TOO.
THEY HAD BUDGETED A TRAINING FACILITY AND YOU DON'T WANNA BUDGET IT AGAIN.
SO THAT'S THE, UM, MAKES UP THE MAJORITY OF THE 6 MILLION CIP FUNDS.
UM, EVERYTHING WAS BASICALLY BREAK EVEN BESIDES THE CAPITAL OUTLAY.
AND SO I KNOW THIS ISN'T THE BEST SCHEDULE TO LOOK AT, BUT SOMEONE MADE A BETTER, THAT MUST HAVE BEEN COREY
AND WHAT THIS IS IS, SO THERE'S THE F 54 MILLION.
THE MAJOR DIFFERENCES ARE THE ADMIN, THE LIBRARY.
YMCA WAS BUDGETED IN 25 AND IS STARTED IN 25, SO WE WON'T BUDGET IT AGAIN IN 26.
SO 31.5 MILLION AC CAPLINGER BALL FIELDS ARE ALMOST DONE.
AND SO WE WON'T BUDGET THAT AGAIN, BUT THEY'LL BE DONE THIS YEAR.
MS. PANIS, WAS THAT 30 MILLION OR 31.5? 31 3 5.
OH, IS THAT THE 1.5 IN THERE FROM THE YMCA? YES.
THE, THE CITY'S COMMITMENT REMAINS FIRM AT 30 MILLION.
SO WE WOULD'VE SHOWN THE ONE POINT THE ADDITIONAL FROM THE YMCA IN OUR RESOURCES, AND WE BUDGETED IT.
NEXT HIGHEST ITEM IS KALING OR BALL FIELDS, WHICH ARE NEARING, WELL, I DUNNO, WHAT ARE THEY? PROBABLY HALFWAY THROUGH.
AND THEN, SO WHAT I DID IS I, AS YOU GO DOWN, IT'S ALL IN AS DESCENDING, ASCENDING, WHICHEVER WAY YOU WANNA LOOK AT IT SINCE IT'S A NEGATIVE.
BUT PARK PROJECTS, SO LIKE THE CAPLINGER BALL FIELDS, PELICAN BAY TRAILS, UM, MAINLY TRAILS, ARCADIA LAKE MASTER PLAN, THE TOTAL OF ALL THOSE IS ABOUT 25 MILLION THAT WE BUDGETED IN 25.
THE Y LIBRARY WAS 31.5 MILLION, BUDGETED IN 25, WON'T BUDGET IN 26.
AND THEN THE CITY COMPLEX, WHICH WAS ACTUALLY THE, UH, CITY HALL AND THE PARKING GARAGE TOGETHER, THAT'S ABOUT 950,000.
ONCE AGAIN, IT'LL BE FINISHED VERY SOON.
SO THAT'S 57.6 MILLION OF THE 54 REDUCTION.
AND THEN THE OTHER ITEMS REALLY ARE ALL STREET RELATED STREETS, INTERSECTION, A DA, UM, INTELLIGENT TRAFFIC SYSTEM.
THOSE ALL TOTALED A POSITIVE 3 MILLION.
SO WE'VE INCREASED OUR BUDGET FOR THOSE, AND THAT'S WHAT COMES TO THE 54 MILLION.
ANY QUESTIONS ON THAT OR HELP ME OUT HERE? UM, WHEN, WHEN YOU SAY THAT WE ENCUMBERED THE FUNDS THIS YEAR, SO WE'RE NOT GONNA BUDGET THEM AGAIN.
IF WE ENCUMBERED THE MONEY BY STATE LAW, WHEN DO WE HAVE TO HAVE THOSE BILLS PAID? SO WHAT'S, WHAT HAPPENS? WE DON'T BUDGET THEM IN OUR ORIGINAL BUDGET THE FOLLOWING YEAR, BUT IF THEY'RE ENCUMBERED AND THEY'RE NOT SPENT, ESPECIALLY IN CONSTRUCTION PROJECTS, IT WILL ROLL.
WHEN WE DO OUR ENCUMBRANCE ROLL ON SEPTEMBER 30TH, WE HAVE TO LEAVE OUR BOOKS OPEN, SO TO SPEAK, SO THAT WE CAN GET ALL THOSE WELL, YEAH, I, I UNDERSTAND THAT AT, AT THE STATE LEVEL, YOU ENCUMBER THROUGH JUNE 30TH, AND THEN YOU BASICALLY HAVE UNTIL NOVEMBER 15TH TO PAY YOUR BILLS.
SOMEBODY HERE, MAYBE ANDY, BUT WHAT WE DO IS, SO WE'LL ENCUMBER THE WHOLE 31 MILLION AND THEN WHATEVER'S NOT FINISHED, OR WE HAVEN'T BEEN BILLED FOR.
SO YES, WE'LL PAY OUR BILLS THAT COME IN,
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BUT WE HAVEN'T BEEN BILLED FOR THAT.ENCUMBRANCE WILL ROLL AND IT WILL INCREASE OUR BUDGET THE NEXT YEAR, IF THAT MAKES SENSE.
SO WHEN YOU SEE THE ORIGINAL BUDGET VERSUS THE CURRENT BUDGET, THE CURRENT BUDGET HAS ENCUMBRANCES ROLLED OVER TO IT, AND IT INCREASES.
SO WHAT YOU'RE TELLING ME IS, IS THAT WE'RE GONNA, WE'RE WE'RE GONNA FORCE AN INCREASE IN THE 26TH BUDGET.
BUT KEEP IN MIND TOO, THE WAY IT'S ALL GONNA ROLL OUT, WHEN IT ACTUALLY ENDS UP, IF YOU ENCUMBER SOMETHING OR IF YOU SPEND IT, IT'S NOT GONNA BE IN YOUR RESERVES.
YOU DON'T WELL, I, I UNDERSTAND THAT.
I'M, I'M JUST TRYING TO GET A HANDLE OF HOW WE'RE, WE'RE MOVING THE MONEY.
BECAUSE WHEN YOU ENCUMBER MONEY, YOU SAY YOU'RE GONNA PAY A BILL, RIGHT? AND AT THE STATE LEVEL, WHEN YOU ENCUMBER AGAINST A BUDGET, YOU THEN HAVE UNTIL NOVEMBER 15TH OF THE YEAR TO PAY THAT BILL.
SO YOU BASICALLY GET, YOU KNOW, A LITTLE BIT MORE THAN A QUARTER TO GET 'EM FINISHED OFF.
SO IF THE PROJECT'S NOT COMPLETE, HOW IS THAT HANDLED? YOU WOULD BUDGET MORE MONEY IN, IN THAT NEXT BUDGET YEAR.
YOU WOULDN'T BE SAYING, I'M NOT GONNA BUDGET IT 'CAUSE I'VE ALREADY BUDGETED IT.
YOU'D HAVE TO ADD THAT MONEY BACK INTO YOUR BUDGET SO YOU DON'T ENCUMBER THE WHOLE PROJECT.
NO, THAT, THAT'S A DIFFERENCE.
AND SO THAT'S HOW I'M TRYING TO, I'M, THAT'S WHY I'M TRYING TO FOLLOW THIS, BECAUSE BASICALLY YOU'RE SAYING WE'RE DECREASING THE BUDGET, BUT YOU'RE SAYING, WELL, NO, WE'RE REALLY NOT BECAUSE WE OVERSTATED IT THIS YEAR, AND THEN WE'RE GONNA HAVE TO PUT STICK IT BACK IN NEXT YEAR ANYWAY, IT ROLLS WITH THE ENCUMBRANCE.
SO YEAH, BECAUSE WE ENCUMBER THE ENTIRE PROJECT, IT MIGHT TAKE TWO YEARS.
IT, IT WORKS ON THE BOOKS BECAUSE OF RESERVES.
WELL, I, I RECOGNIZE HOW IT WORKS ON THE ACCOUNTING SIDE, BUT, BUT, BUT WHEN YOU'RE TRYING TO BUILD A BUDGET THAT PEOPLE CAN UNDERSTAND, YOU KNOW, IT'S LIKE, WELL, WE KNOW WE'RE NOT GONNA SPEND THAT MONEY THIS YEAR.
WE'RE REALLY GONNA SPEND IT NEXT YEAR, BUT WE'RE NOT GONNA PUT IT IN NEXT YEAR'S BUDGET.
WE'RE JUST GONNA, WHEN WE'RE READY TO SPEND IT, WE'LL JUST DO A BUDGET AMENDMENT.
WELL, THE ENCUMBRANCE PUTS IT IN THE NEXT YEAR'S BUDGET.
IT JUST ISN'T, WE DON'T ORIGINALLY BUDGET IT AGAIN.
OKAY, SO WHEN WE'RE SETTING THIS YEAR'S BUDGET FOR 26, WE HAVE THE WHOLE PROJECT OF THE Y IN THERE AT 31 MILLION.
AND IT MAY TAKE TWO YEARS TO DO IT.
WELL, WE DON'T WANNA PUT THE 31 OR EVEN 15 IN AGAIN, BECAUSE THAT ENCUMBRANCE IS GOING TO PUT IT IN THERE FOR WHATEVER WE DIDN'T SPEND AND WORK FOR.
BUT ALL I'M, ALL I'M SEEING ON THAT, ON THE LINE FOR THE SECOND LIBRARY AND Y IS 150,000 IN THE FY 26 BUDGET.
RIGHT? AND THAT'S IN ADDITION.
SO HOW MUCH ARE WE NOT GONNA HAVE PAID THAT WE ENCUMBERED IN FY 25? ANY IDEA? ANDY?
I MEAN, IT'S JUST STARTED, SO I'M GONNA SAY SHOOT 30 MILLION, I MEAN 20 MILLION.
WE ANTICIPATE BEING COMPLETED IN EARLY 2026.
WELL, SO, OKAY, MR. MAY WE REALLY NOT SAYING, I MEAN, I, I SEE YOUR ARGUMENT.
IT MAKES SENSE ALSO, I COULD GO BACK AND LOOK AND SAY WE OVER BUDGETED IN THE PRIOR YEAR MM-HMM
IF YOU WANT TO DO IT ON AN ACCRUAL BASIS.
I MEAN, IT'S NOT THAT'S CORRECT.
THAT WE, IT, IT'S JUST WHICH PERIOD WE'RE ALLOCATING IT TOWARD AND, AND NOT THAT WE'RE, I GUESS YOU COULD SAY WE'RE UNDERSTATING NEXT YEAR.
BUT THEN I COULD SAY, WELL, WE OVERSTATED LAST YEAR.
MR. KNIFING MIGHT HAVE SOME LIGHT TO SHED ON THIS AS WELL.
I, I'LL EXPLAIN MY, UM, MY WATER ANALOGY FOR, BECAUSE THESE PROJECTS ARE HUGE.
UM, SO WE CANNOT AWARD THE PROJECT UNLESS WE HAVE FULL FUNDING.
AND SO HOW WE'VE DONE THAT IS HAVE EITHER A LOAN, WHATEVER IT IS.
SO WE'VE EITHER GOT RESERVES OR A LOAN ENCUMBER THE FUNDS, AND THEN WHEN WE SHOW IT IN THE FINANCIALS, WE SHOW ACTUALS EACH YEAR IT GETS SPENT.
BUT WE CANNOT ENCUMBER THE PROJECT UNLESS WE HAVE ALL THE FUNDS AVAILABLE.
WELL, I UNDERSTAND THAT BECAUSE WHEN YOU DO A PROJECT, ONCE YOU SIGN A CONTRACT, YOU HAVE A LEGAL OBLIGATION THAT TELLS YOU HOW LONG THIS IS GONNA TAKE.
YOU SHOULD HAVE A TIMELINE, YOU KNOW WHAT'S GONNA HAPPEN.
AND IF YOU'VE GOT THE FUNDING ALREADY ESTABLISHED, THEN YOU LOOK AT IT AND YOU SAY, HERE'S FY 26, HERE'S HOW MUCH OF IT WE ANTICIPATE DOING AN FY 26, THEREFORE HERE'S HOW MUCH WE'RE GONNA SPEND IN FY 26.
HERE'S HOW MUCH WE'RE GONNA SPEND IN 25.
HERE'S HOW MUCH WE'RE GONNA SPEND IN 27.
YOU CAN PUT THAT INTO YOUR BUDGET.
THE IDEA OF A BUDGET IS TO BE ABLE TO SAY, THIS IS WHAT WE'RE SPENDING.
NOT TO SAY, HERE'S WHERE WE'RE STARTING.
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IT ALL AT THE BEGINNING OF A PROJECT, BUT WE'RE NOT GONNA TALK ABOUT IT IN THE BUDGET UNTIL WE'RE READY TO DO SOMETHING AND THEN DO A BUDGET AMENDMENT.WE NEED TO STOP DOING BUDGET AMENDMENTS EVERY TIME WE TURN AROUND BECAUSE WE'VE GOTTA BE ABLE TO SAY, THIS IS WHAT WE'RE SPENDING.
AND WE'RE NOT DOING THAT RIGHT NOW.
WE'RE LITERALLY FRONT LOADING A PROJECT AND OVERSTATING ONE YEAR, AND THEN WE COME BACK THE NEXT YEAR AND SAY, LOOK, WE DECREASED WHAT WE'VE WE'RE DOING, EVEN THOUGH WE HAVEN'T EVEN SPENT THE MONEY YET.
IF, IF WE'RE GOING IN FRONT OF OUR BOND HOLDERS AND, AND WE'RE SAYING THAT WE DON'T HAVE THIS EXPENSE, BUT WE'VE ACTUALLY GOT ALL THIS EXPENSE AND THEN WE'VE ALSO GOT DEBT SERVICE ASSOCIATED.
ALL THOSE THINGS ARE OFFSETTING THROUGH THE YEARS.
SO I, I WOULD SAY THAT WHEN WE TALK TO, UH, STANDARD POORS OR WHOEVER IT IS, WHEN WE'RE GOING THROUGH OUR FINANCIALS, THEY'VE HAD NOTHING BUT GOOD THINGS TO SAY ABOUT HOW WE'RE REPORTING AND WHAT WE'RE DOING.
BUT, YOU KNOW, WELL THAT'S BECAUSE THEY'RE LOOKING AT IT FROM, FROM THE ACCOUNTING SIDE.
THEY'RE LOOKING, THEY'RE NOT LOOKING AT THE BUDGET PIECE OF IT.
BUDGET IS A DIFFERENT ANIMAL THAN ACCOUNTING.
AND THE STATE OF OKLAHOMA, WHEN YOU TALK ABOUT BONDS AND PROJECTS, THEY MANAGE IT THE WAY I JUST DESCRIBED IT.
WHEN YOU TALK ABOUT A BUDGET, THEY LOOK AT WHAT THEY'RE GOING TO SPEND THIS YEAR AND THEY HAVE ALL THAT MONEY SITTING IN A FUND THAT BACKS IT.
AND THEN THEY SAY, WE'RE GONNA SPEND 10 MILLION THIS YEAR, AND THEN THEY SPEND 8 MILLION, 9 MILLION, WHATEVER IT IS.
IF THEY GO OVER THE 10 MILLION, THEY'VE GOTTA GO BACK AND ASK FOR A BUDGET AMENDMENT AT THAT POINT.
THE IDEA IS TO PUT THE MONEY OUT THERE SO YOU GET AN IDEA OF HOW MUCH YOU'RE SPENDING NOT HAVE TO KEEP COMING BACK TO THIS COUNCIL TO GET A BUDGET AMENDMENT EVERY MONTH BECAUSE WE'RE DOING SOMETHING DIFFERENT SOMEWHERE.
AND I KNOW THIS IS A HUGE STEP FORWARD FOR US, OR IN SOME CASES A HUGE STEP BACKWARDS TO GET BACK TO WHERE BUDGETS WERE NOT A NEARLY AS BIG IN THIS CITY, BUT WE HAVE GOT TO FIGURE OUT HOW WE CAN PAINT A CLEAR PICTURE OF WHAT OUR BUDGET IS.
WE JUST, I'M JUST SAYING THAT WE WOULDN'T HAVE A WAY TO SHOW A CONTRACTOR THAT WE CAN PAY OUR BILL IF WE DID NOT ENCUMBER IT.
SO IF THE ACCOUNTING AND FINANCIAL, YOU KNOW, I GUESS HOW YOU WANT TO SHOW IT, WE WOULD HAVE TO ACTUALLY HAVE THE MONEY AVAILABLE SO THAT, THAT'S WHY IT SHOULDN'T LIKE THIS.
SO YOU'D LIKE TO SEE THOUGH, I, I, I THINK I HEAR WHAT YOU'RE SAYING IS BUDGET, THE EXPENSE SIDE WHEN YOU, IN THE YEAR YOU THINK YOU'RE GONNA SPEND IT.
AND, AND YOU KNOW, WE'VE TALKED ABOUT HAVING A BUDGET REFORM COMMITTEE TO EXPLORE ALL THE THINGS.
'CAUSE WE CAN'T, WE CAN'T CLEAN THIS UP IN, YOU KNOW, THIS BASICALLY THREE MEETINGS THAT WE'VE GOT AS A NEW COUNCIL.
UM, AND WE'VE TALKED ABOUT SITTING DOWN AND LOOKING AT THE WAY THE FUNDS ARE STRUCTURED AND TALKING ABOUT THE WAY WE BUDGET OVERALL.
WE'RE JUST, WE'RE TRYING TO GET TO A POINT WHERE THERE'S FIVE PEOPLE UP HERE THAT ARE COMFORTABLE WITH THE INFORMATION THAT WE'RE BEING PRESENTED.
I THINK IT'S SOMETHING WE'RE GONNA NEED A LITTLE MORE TIME TO UNPACK.
AND YOU AT THE FEDERAL LEVEL TOO, MY EXPERIENCE IS LIKE YOURS, THE, UM, THE OBLIGATION IT'S CALLED IS SEPARATED FROM THE BUDGET AND THE BUDGET COURT OR THE BUDGET ALIGNS MORE TO THE PLANNED EXPENDITURES.
SO THAT'S WHAT I'M USED TO AS WELL.
AND THE BIG THING IS, JUST LIKE YOU SAID, IT MAKES IT HARD TO COMMUNICATE AND UNDERSTAND WHAT'S GOING ON, RIGHT.
'CAUSE THESE BIG NUMBERS ARE MOVING, LIKE WE TALKED ABOUT IN THE LAST MEETING.
SO I THINK THAT'S SOMETHING WE CAN LOOK AT, UM, IN, IN MAYBE NEXT YEAR HOW WE, SO I THINK WE'VE GOT THE INFORMATION.
I KNOW THAT ANYBODY'S YEAH, NO, WHAT YOU TRACKING? YEAH.
WHAT, WHAT YOU AND MATT GAVE US YEAH.
UM, AT THE END OF LAST WEEK IS A HUGE STEP FORWARD BECAUSE IT ALLOWED, IT ALLOWED MYSELF AND I THINK PRESTON AS WELL FOR SURE, TO DIG IN A LITTLE BIT DEEPER TO UNDERSTAND WHAT'S HAPPENING.
AND I THINK WE CAN DEFINITELY REALLY WORK ON REPORTING TOO, IN THE MEANTIME AND, AND REALLY HELP THAT MM-HMM
'CAUSE I, I UNDERSTAND YOU GUYS HAVE TO TALK TO THE PUBLIC AND NONE OF IT'S WRONG.
IT'S JUST THAT IT'S HARD TO COMMUNICATE.
BUT THAT'S THE BIG DIFFERENCE.
IT'S REALLY THE BIG DIFFERENCE OF THE WHOLE 40 MILLION IS THAT, UM, AND SO HERE WE ARE ON UTILITIES AND IF MR. FISHER OR MR. KNIFING WOULD LIKE TO COME UP AND EXPAND, THEY CAN.
BUT I CAN KIND OF TELL YOU IN GENERAL WHAT HAPPENED.
THE CAPITAL OUTLAY WENT UP 12 MILLION AND IT IS ELECTRIC SUBSTATION PROJECTS, WATERWORKS CONSTRUCTION AND, UH, WATER PLANT EXPANSION, MASTER PLAN, AND ANNUAL LINE
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REPLACEMENT DRAINAGE PROJECTS.AND THAT'S THE, THAT'S THE 12 MILLION.
AND THEN THE DEBT SERVICE WENT UP BECAUSE WE HAVE JUST, WE HAVE SOME ADDITIONAL DEBT.
SO OUR NEW ELECTRIC DEBT, THAT'S THE FIRST TIME WE'RE SEEING THAT.
AND THEN WHAT WE HAVE AN OUTSTANDING DEBT IN THE WATER SIDE OF THINGS ARE ALL OF THESE VARIOUS BONDS AND NOTES.
AND WE DRAW DOWN ON THE OWRB NOTES REGULARLY AS WE NEED IT.
AND SO OUR DEBT GOES UP, WHICH CAUSES THE DEBT SERVICE TO GO UP.
UM, OTHER ENTERPRISE, THIS IS THREE FUNDS.
IT'S GOLF, CITI LINK, AND YOUR GO SHOP.
AND SO NOT, NOT ANYTHING REAL EXCITING HERE, BUT UH, THE GOLF COURSE NEEDED A COUPLE MORE MOWERS AND BLOWERS AND CLINK, UH, IS, IS REALLY WATCHING THE REPLACEMENT OF THEIR, UM, THEIR VEHICLES.
SO THAT'S WHAT THAT IS A RESULT OF.
AND THEN INTERNAL SERVICE FUNDS ACTUALLY HAD TO LOOK AT THIS CAPITAL OUTLAY AND INTERNAL SERVICE FUNDS, IT'S MAINLY ALWAYS GOING TO REVOLVE AROUND FLEET.
AND THAT'S THAT WHOLE DEAL WHERE WE PAY IN EVERY MONTH, BUILD OUR RESERVES, AND THEN YOU BUY IT.
SO IT REALLY IS PRETTY MUCH ONE TIME EXPENSES, BUT IT WENT DOWN 9 MILLION MOSTLY BECAUSE OF FIRE AND ALL THE VEHICLES THAT THEY BOUGHT.
SO THEY HAD IN CHIEF A WEAVER, YOU'RE WELCOME TO COME UP AND EXPAND AS WELL.
BUT BASICALLY WE HAD, I THINK A COUPLE BUS BRUSH, PUMPERS, AERIAL LATERAL LADDER APPARATUS, TRIPLE COMBO COMBO, PUMPER, TANKER AND JUST VARIOUS LARGE ITEMS THAT WE BUDGETED FOR.
AND I THINK WE BOUGHT MOST OF THEM IN IN 25.
SO ONCE AGAIN, THIS WAS OUR ORIGINAL BUDGET AND I'LL LET SHIFT CHIEF WEAVER TELL YOU WHERE WE ARE.
COUNSEL, HOW ARE YOU? UH, THESE, THESE, UH, THESE ITEMS HAVE ALREADY BEEN BOUGHT.
THE 6 MILLION THAT WE PUT IN FOR THE, THE FLEET FUND WAS TO UP OUR FLEET FUND.
UH, THESE, THESE RIGS WERE BOUGHT FOR PRETTY MUCH 40 MONTHS AGO BECAUSE THERE'S A LONG WAIT FOR THESE APPARATUS.
UM, BUT WE'VE GOT 'EM ALL FOR ALL HERE IN THE CITY.
WE'VE PRETTY MUCH ALL PAID THE INVOICES EXCEPT WE'VE HELD $7,000 OUT FOR, UH, THE TRIPLE COMBINATION PUMPERS RIGHT NOW BECAUSE THEY'RE GETTING OUTFITTED, UH, TO GO IN SERVICE.
AND THEN THE TANKER WILL BE HERE PRETTY SOON AND THAT'S ABOUT FOUR, 500,000.
BUT EVERYTHING ELSE'S BEEN PAID FOR THE 6 MILLION WAS TO PUT IN OUR FLEET FUND TO, UH, UP OUR FLEET FUND SO WE CAN REPLACE APPARATUS WHEN THEY COME.
SO IT'S KIND OF SITTING THERE WAITING FOR US, BUT OUR APPARATUS IS PRETTY MUCH UP TO DATE AND, UH, WITH A 10 YEAR FRONT LINE.
BUT WE CAN MOVE THOSE BACK IF WE NEED TO TO SAVE FUNDS.
SO ARE THERE ANY QUESTIONS ON ANY OF THE, THE DECREASE OF THE 40 MILLION? DID THAT ALL MAKE SENSE? IT'S MAINLY CAPITAL ALLY FROM CIP.
SO NOW THIS IS, UH, THE VARIANCE FROM THE FISCAL YEAR 25 BUDGET TO ACTUAL WHERE WE THINK WE'RE GONNA END OUR YEAR AT 6 30 25.
AND THIS IS INCOME, SO SORRY, THIS WAS THE ORIGINAL SLIDE I HAD.
AND BASICALLY IT SHOWS AN INCREASE OF WHAT WE BUDGETED IN REVENUE TO WHERE WE ACTUALLY ENDED UP OF ABOUT 30 MILLION.
AND THE QUESTION WAS REGARDING THIS CHARGES FOR SERVICES, WHY DID IT GO UP SO MUCH? SO I WILL HAVE GLEN FISHER AND IF CHRIS WOULD LIKE TO TOO, CHRIS ING COME UP, BUT BASICALLY THIS 125 IN ELECTRIC, THAT WAS ME DOING THAT.
AND I ANNUALIZED, I ANNUALIZED ABOUT MIDDLE OF THE YEAR AND I AM PROBABLY OVER A BIT, BUT, UH, GLEN WILL BE ABLE TO DESCRIBE, HE IS, HI.
HIS TOTAL REVENUE IS LOOKING PRETTY CLOSE ACTUALLY.
SO VERY, PARDON? I'M SORRY, WHAT WAS THAT LAST SENTENCE? SO GLEN CAN TELL YOU WHERE HE REALLY IS IN ALL OF HIS REVENUE, THIS WAS CHARGES FOR SERVICES OVER, UH, ONLY, AND I DID THAT ESTIMATE, I DID THE 1 25 AND IT'S, IT'S A LITTLE HIGH.
SO, UM, GLEN CAN COME UP AND TALK ABOUT WHERE HE REALLY IS.
AND THEN ACTUALLY ALSO ON WATER WE'RE OVER A BIT BECAUSE OF THERE, IT WAS DRY THIS WINTER.
AND SO MORE, MORE WATER WAS USED IN A NUTSHELL.
THE REST OF THESE ACTUALLY NET TO ABOUT $19,000.
AND THEN ALL THE OTHER FUNDS, ALL OF 'EM TOGETHER WERE 266,000 MORE.
SO GLEN, DO YOU WANNA COME TALK A LITTLE BIT JUST SURE.
BEFORE YOU HAND IT OFF REAL QUICK, JUST SO I UNDERSTAND THE PROCESS, THE FY 25 ORIGINAL BUDGET HERE WAS
[00:25:01]
THE NUMBER THAT WAS ESTABLISHED AROUND THIS TIME OF LAST YEAR, RIGHT? RIGHT.THE STARTING NUMBER FOR THE FISCAL YEAR.
JUST LIKE, SO WHEN I LOOKED AT ACTUALS, IT WAS LIKE IN JANUARY, RIGHT.
SO YOU HAVE TO, SO STAFF HAS TO MAKE AN ESTIMATE OF WHERE WE'LL END UP AT THE END OF THE YEAR SO WE CAN START THIS PROCESS, RIGHT? THEY CERTAINLY CAN, RIGHT? YES.
SO THAT'S WHAT THE MIDDLE COLUMN IS, RIGHT? IS WHAT WHAT YOU ALL CAL KIND OF CALCULATED YOU WOULD WHERE WE WOULD END UP AT THE END OF THIS.
THE MONTH OF JUNE, BASICALLY WE, YOU KNOW, WE DO START REALLY IN DECEMBER, JANUARY AND DEPENDING ON, YOU KNOW, WHERE EVERYBODY IS, SOMETIMES UH, FINANCE WILL ENTER THE REVENUE AND SOMETIMES THE DEPARTMENT DOES.
BUT, UM, GLEN'S DONE AN EXCELLENT JOB OF TRACKING WHERE HE IS AND CAN TELL YOU EXACTLY WHERE HE IS RIGHT NOW.
BUT THAT'S JUST PART OF THE PROCESS TO ME.
LIKE WE HAVE TO MAKE A DECISION IN DECEMBER OR WHATEVER WHERE WE THINK WE'RE GONNA END UP WITH THE YEAR SO EVERYBODY COULD START PLANNING AND THINGS SOMETHING THAT'S MORE VOLATILE THAN OTHERS.
SO, AND IT'S AN ISSUE AND YOU KNOW, THINGS LIKE ELECTRIC AND, AND WATER THAT ARE SO LARGE, RIGHT? UM, WE MAY NEED TO REVISIT EXACTLY HOW WE DO THAT AND THE TIMING.
'CAUSE IT IS, IT, IT IS DIFFICULT SIX MONTHS AHEAD OF YEAR, YEAR IN TO EVEN, YOU KNOW, TO KNOW WHERE YOU'RE GONNA BE.
BUT ESPECIALLY WITH WEATHER THAT IMPACTS THINGS.
BUT I'LL TURN IT OVER TO GLEN, BUT THE MIDDLE, SORRY, LAST THING.
THE MIDDLE COLUMN THERE IS OUR CURRENT PROJECTION AS FAR AS WE KNOW RIGHT NOW.
IS THAT TRUE? THAT YES, THAT IS OUR REVISED BUDGET.
SO IT'S NOT, YOU KNOW, ALL IT DOES REALLY, IT AFFECTS RESERVES AT ROLLOVER.
RIGHT? THOSE WILL ALL BE TRUED UP RIGHT AT 12 31 25 WHEN OUR AUDIT IS DONE FOR 6 30, 25.
ANY, ANY OTHER QUESTIONS FOR ME? OKAY.
I'M NOT GOING THERE IN THIS MEETING
SO I KNOW IT LOOKS LIKE A BIG DIFFERENCE BETWEEN, UH, WHAT WE ORIGINALLY BUDGETED AND WHAT OUR ESTIMATE IS.
UH, BEAR IN MIND A BIG DRIVER FOR THAT IS THE $22 MILLION WORTH OF BOND PROCEEDS THAT WE TOOK IN THAT IS BUDGET IN, IN THE 2025 YEAR.
IT'S BOOKED INTO 2025 FISCAL YEAR.
WE DID NOT ACCOUNT FOR THAT IN THE ORIGINAL BUDGET.
SO THAT DROVE IT UP 22 MILLION.
AS FAR AS, UH, BASE RATE REVENUE, UM, WE, UM, ARE BASICALLY ABOUT 1.1 MILLION OVER WHAT WE PROJECTED FOR RESIDENTIAL AND COMMERCIAL REVENUE.
UM, OUR FUEL COST ADJUSTMENT AND OUR PURE AND SIMPLE WIND PROGRAMS WERE ACTUALLY $11 MILLION UNDER WHAT WE BUDGETED.
I BUDGETED $21 MILLION BECAUSE THAT'S DRIVEN BY THE PRICE OF NATURAL GAS.
AND SINCE WE STARTED SIX MONTHS BEFORE THE FISCAL YEAR MM-HMM
WE TRY TO ESTIMATE WHAT GAS PRICES ARE A YEAR, YEAR AND A HALF OUT.
UM, AT THAT TIME IT LOOKED LIKE GAS PRICES ARE GONNA BE HIGHER, WHICH DRIVES UP TO WHOLESALE POWER PRICE IN THE SOUTHWEST POWER, UM, WHOLESALE MARKET.
UM, AND SO I BUDGETED 21 MILLION ASSUMING HIGHER GAS PRICES WE'RE ACTUALLY GONNA COLLECT AROUND, UM, 12 AND A HALF MILLION THIS YEAR.
SO WE'RE, WE'RE OVER BECAUSE OF THE, IN A NUTSHELL, WE'RE OVER BECAUSE OF THE BOND PROCEEDS SHOWING UP AND THAT'S KIND OF OFFSET BY SOME OF THE FUEL COST ADJUSTMENT REVENUE STREAM.
ANY OTHER QUESTIONS? THANK YOU.
ANY OTHER QUESTIONS ON THIS PARTICULAR ITEM? NO.
I'M GONNA MOVE ON TO THE, THE USE OF 57 MILLION IN RESERVES.
AND OUR ORIGINAL SLIDE WAS SHOWING IT'S, IT'S ADDRESSING THIS FIGURE RIGHT HERE.
SO I'LL, I'LL TELL YOU MY APPROACH AND THEN YOU CAN ASK ME IF IT DOESN'T MAKE SENSE.
SO, UM, SO I WANTED TO SHOW THIS IS EVERY GROUP OF FUNDS.
SO OUR SIX GROUPS, THERE'S OUR 57 MILLION AND WHAT EACH, EACH GROUP USE THEIR RESERVES FOR THE AMOUNT.
SO MY APPROACH HERE IS WE WENT INTO RESERVES IN EACH CASE.
SO THIS AGREES TO OUR BUDGETED REVENUE.
THIS AGREES TO OUR BUDGETED EXPENDITURES AND THIS AGREES TO OUR BUDGETED RESERVE USAGE.
SO MY APPROACH HERE IS I'M USING RESERVES FOR EACH ONE OF THESE FUND GROUPS.
AND KEEP IN MIND LIKE THERE'S PROBABLY NINE, YOU KNOW, I DON'T KNOW, 10 FUNDS, 12 FUNDS HERE.
SO THERE'S A LOT OF DIFFERENT FUNDS IN EACH OF THESE GROUPS.
BUT IF I, THE QUESTION WAS HOW MUCH IS BEING USED FOR RECURRING COSTS? AND SO I'LL PUT A DISCLAIMER ON THAT AS WELL.
BUT MY APPROACH WAS SO CAPITAL OUTLAY, WE KNOW THAT THAT'S
[00:30:01]
A ONE-TIME EXPENSE.AND SO IF I PUT, IF I SAY, HEY, I HAD CAPITAL OUTLAY OF THIS AMOUNT AND IT'S GREATER THAN WHAT I USED MY RESERVES FOR, I CONFIDENTLY SAY, WELL, I USED IT FOR CAPITAL OUTLAY THAT I COULD HAVE CHOSEN NOT TO SPEND.
I COULD HAVE JUST NOT SPENT IT AND NOT USED MY RESERVES AT ALL.
BUT WE DID GO AHEAD AND SPIN IT AND WE USED OUR RESERVES.
SO THAT LEFT TWO FUND GROUPS, SPECIAL REVENUE AND OTHER ENTERPRISE THAT ACTUALLY USED MORE RESERVES THAN JUST CAPITAL OUTLAY.
I PROBABLY SHOULD HAVE CALLED THIS JUST OTHER RATHER THAN RECURRING BECAUSE IT DOESN'T NECESSARILY, IN EVERY CASE MEAN THAT IT WAS RECURRING.
AND I'LL SHOW YOU THAT ON THE NEXT SLIDE.
AND I DIDN'T DO A SLIDE ON THIS ONE, BUT THIS IS GOLF CITYLINK AND, UM, YOUR GOV SHOP.
AND I WILL SAY WE TRANSFERRED $500,000 FROM YOUR GOV SHOP RESERVES TO GENERAL FUND TO HELP SUSTAIN ITS UNASSIGNED BALANCE.
IT HAD AMPLE RESERVES AND IT DOES, UH, GENERATE REVENUE EVERY YEAR AND BUILDS ITS RESERVES.
SO THAT WAS ONE THING THAT'S ONE PART OF WHAT'S USED HERE.
THIS ACTUALLY WAS CAPITAL OUTLAY, PROBABLY CITYLINK AND, AND SOME GOLF, BUT GOLF ACTUALLY INCREASED THEIR RESERVES.
AND THEN I KNOW WE BOUGHT A VEHICLE IN, UM, IN CITYLINK.
SO THAT'S REALLY WHAT THE, THAT IS THIS ONE.
SO WHAT I DID HERE, I JUST WANTED TO SHOW THERE'S MY 7.3 USAGE OF RESERVES AND YOU CAN SEE SOME ARE POSITIVE, SOME ARE NEGATIVE, OR WE WE'RE GETTING INTO THE RESERVES.
SO I JUST WANNA TOUCH ON A FEW, UM, ASSET FORFEITURE AND IF ANYONE IN POLICE WOULD LIKE TO COME UP AND EXPLAIN BETTER, THEY ARE WELCOME TO.
BUT BASICALLY AS ASSET FORFEITURE, THEY SEIZE ASSETS, WHATEVER, EITHER SELL THEM OR, YOU KNOW, HAVE CASH OR WHATEVER.
AND THEN THEY USE THAT MONEY TO REPLACE EQUIPMENT OF SOME SORT.
THEY USE IT WITHIN THE DEPARTMENT.
SO IT ACTUALLY DOES BUILD A RESERVE AND THEN THEY'LL USE IT.
SO IT'S NOT RECURRING, BUT IT'S JUST, IT'S USING WHATEVER ENDS UP IN THIS FUND FROM ASSET SEIZURE AND FORFEITURE.
THE AMBULATORY SERVICES FUND, THAT'S OUR A MR CONTRACT.
WE'RE USING 275,000 OF RESERVES, BUT THAT'S INTENTIONAL.
UM, BEFORE YOU ALL TOOK OFFICE, MAYBE YOU MIGHT HAVE BEEN HERE ALREADY, BUT WE, THE COUNCIL DID APPROVE AN A, A NEW CONTRACT WITH A MR TO PROVIDE MORE SERVICES FOR OUR COMMUNITY.
THEY, WE WERE HAVING TO USE MUTUAL AID.
WE DIDN'T HAVE ENOUGH, YOU KNOW, AMBULANCES TO SHOW THAT WOULD SHOW UP TO ACCIDENTS AND THAT KIND OF THING.
SO WE INCREASED OUR SERVICES THAT IS IN PLACE FOR FIVE YEARS.
THEN THE REVENUES FROM THE $3 FEE THAT PEOPLE THAT OPT INTO THAT, UM, OPTION ON OUR UTILITIES, THAT'S WHERE THE REVENUE'S FROM.
WAY BACK WHEN LARRY STEVENS WAS HERE, HE TOLD ME ONE TIME THAT HE DID THE $3 FEE AND LET THE RESERVES BILL BECAUSE THEY DIDN'T WANNA INCREASE THAT FEE.
AND, AND THEY HAVEN'T HAD TO SINCE I'VE BEEN HERE.
AND I DON'T KNOW HOW LONG AGO THEY CHOSE THE $3 FEE, BUT IT HAS COVERED ALL OF THE EXPENSES.
AND THEN, UH, RIGHT AS CHIEF GOODWIN WAS LEAVING THE FIRE DEPARTMENT AND CHIEF WEAVER CAME IN, THEY DID PRESENT THIS PLAN TO JUST GIVE US MORE SERVICE.
SO THAT'S INTENTIONAL, BUT IT WILL BE REEVALUATED.
WE WON'T EVER USE ALL OF THAT RESERVE.
AND PLUS IT'S, IT'S BASICALLY MEANT FOR THAT YOU CAN'T USE IT OTHER PLACES.
UH, POLICE AND FIRE WILL COME BACK TO IN A MINUTE.
THESE OTHERS ARE SMALL, THESE ARE INCREASING.
THESE ARE THE, THESE ARE, YOU KNOW, THE RESTRICTED FUNDS THAT ONLY YOU CAN, YOU CAN ONLY SPEND OPIOID ABATEMENT, GRANT ON HEALTH RELATED THINGS, THAT KIND OF THING.
THE OTHER ONE THAT WAS INTENTIONAL WAS THE HOSPITAL TRUST FUND.
AND YOU MAY BE FAMILIAR, WE HAVE THE HOSPITAL THAT'S AT SECOND AND BRYANT, WE SOLD THAT AND THE CORPUS IS AROUND 7 MILLION AND IT MUST REMAIN INTACT.
AND THE INTEREST THAT WE EARN FROM THAT EVERY YEAR THOUGH, WE WILL MOVE TYPICALLY TO THE REAL PROPERTY FUND.
WE LET IT GROW THERE OR WE LET IT GROW IN THE HOSPITAL, TRUST ONE OR THE OTHER, AND WE MOVE IT TO CAPITAL PROJECTS.
AND SO ONCE AGAIN, WE DID MOVE APPROXIMATELY THIS AMOUNT OVER TO GENERAL FUND TO, TO HELP SUPPORT OUR UNASSIGNED RESERVES.
SO THOSE WERE TWO THINGS THAT WERE INTENTIONAL TO USE THE RESERVES THAT HAD BUILT IN THOSE FUNDS.
SO I'LL MOVE ON TO POLICE AND FIRE HERE.
SO YOU CAN SEE POLICE AND FIRE ARE UNIQUE IN THAT THEIR PERSONNEL COSTS ARE MOST OF THEIR
[00:35:01]
BUDGET, LIKE 80 SOME PERCENT.THEY HAVE SUPPLIES, THEY HAVE CONSULTANTS LIKE EVERYBODY ELSE DOES, AND THEY HAVE SOME CAPITAL OUTLAY, BUT NOT A HUGE AMOUNT.
SO FIRE NEXT YEAR HEAD HAS BUDGETED 3 MILLION FOR CAPITAL PROJECTS POLICE JUST 361,000.
SO ONCE AGAIN, I DID THE SAME THING, TOOK CAPITAL OUTLAY OUT AND THIS IS WHERE I'M COMING TO USE OF RESERVES OF 4.1 MILLION AND 3.868.
LET'S SEE, DO I HAVE, SO SIX, 3.6? IS IT 3.6? I DON'T KNOW.
WE CAN GET A PRINTER PRINTS BIGGER NUMBERS.
AND I, I WAS TRYING LIKE, UGH, I KNOW IT'S SO HARD TO DO THESE SLIDES.
IT TAKES ME LONGER THAN ANYTHING ELSE.
IF WE SAVE ANY MONEY THIS YEAR AT ALL, GET ONE OF THOSE PRINTERS.
SO WHAT I WANTED TO POINT OUT, AND I'LL, AND BOTH CHIEFS CAN COME UP ANY, THEY'LL COME UP HERE IN A MINUTE AND TALK A LITTLE BIT TOO, BUT I DID RUN, UM, OUR BUDGET FOR 26 FOR FIRE AND POLICE.
AND IF YOU LOOK AT ACTUAL IN 24, SO I'M TALKING ABOUT THEIR PERSONNEL SERVICES RIGHT NOW, OR PERSONAL SERVICES, ACTUAL 24 FOR FIRE AND WHERE WE THINK WE'RE GONNA END 26 OR 25.
SO THIS YEAR WE'RE IN RIGHT NOW INCREASED BY 800,000.
WE THINK WE'RE GONNA END AT 24.
SO THE BUDGET WAS 3 MILLION HIGHER THAN WHERE WE THINK WE'RE GONNA END.
SO THAT'S PART OF WHAT'S CAUSING THIS.
'CAUSE WE BUDGET ALL POSITIONS THAT ARE APPROVED.
WE DON'T BUDGET ANY KIND OF VACANCY SAVINGS.
AND IT HAS BEEN PRETTY CONSISTENT.
AND SO IF YOU GO FROM THEN WHAT WE THINK WE'RE GONNA BE AT 25 FOR FIRE AND WHAT WE BUDGETED, IT'S A ALMOST A $5 MILLION INCREASE.
SO THERE'S, THERE'S A QUESTION ON OUR BUDGET AND IT HAS HAPPENED PRETTY CONSISTENTLY.
WE DON'T TEND TO SPEND WHAT WE BUDGET IN POSITIONS IN FIRE AND POLICE.
SO THAT WAS, FIRE POLICE WAS VERY SIMILAR.
UH, 24 ACTUAL TO WHERE WE THINK WE'RE GONNA END THIS YEAR IS UP 1.6 MILLION.
BUT THE BUDGET FOR 25 AND WHERE WE THINK WE'RE GONNA END IS 1.6.
THE BUDGET WAS EVEN HIGHER, SO IT WOULD'VE BEEN A $3 MILLION SPREAD.
SO THAT'S WHAT'S HAPPENING OVER AND OVER.
SO THAT'S JUST SOMETHING TO DISCUSS IF WHEN WE'RE SEEING THIS, THE USAGE OF THIS RESERVE LIKE THIS, IT HASN'T, IT'S BUDGETED POSITIONS AND IF WE TAKE 'EM OUT, WE HAVE TO ADD 'EM BACK IN AT SOME POINT.
AND IT, SO ANYWAY, THAT'S WHAT'S HAPPENING JUST TO TELL YOU THAT'S WHAT'S HAPPENING.
AND ALSO IF YOU TAKE THEIR MATERIALS AND SUPPLIES, LIKE EVERY BIT OF THEIR MATERIALS AND SUPPLIES, IF I TOOK IT OUT, FIRE IS 2.15, SO IT WOULD NOT COVER THAT 4.1 AND WHOOPS, POLICE IS, SORRY, UH, 3.1 OR 3.2 MILLION AND SO STILL WOULDN'T QUITE COVER.
SO IT IS, IT IS BECAUSE OF PERSONAL CHARGES AS FAR AS RECURRING.
SO THAT IS DEFINITELY A GOOD DISCUSSION ITEM.
UM, BUT EVERYTHING THAT'S BEEN APPROVED, AND I BELIEVE IT WAS LAST YEAR, CAROLINE CAN CORRECT ME, BUT WE HAD LIKE 54 POSITIONS AND IT WASN'T ALL FIRE AND POLICE, BUT WE HAD A LOT LAST YEAR THAT WE BUDGETED FOR.
AND POSSIBLY SOME OF THOSE ARE STILL NOT FILLED.
YOU WANNA COME UP AND TALK A LITTLE BIT OR DO YOU GUYS HAVE QUESTIONS? HOW DO YOU WANNA I'LL MAKE MY SOAPBOX STATEMENT HERE.
I'VE BEEN, I'VE BEEN A LITTLE VOCAL ABOUT THIS.
I AND YOU LOVE OUR FIRE AND POLICE.
WE WANNA MAINTAIN THAT FOR OUR CITY.
UM, BUT I, I JUST THINK IT'S DANGEROUS TO BUDGET TO USE RESERVES FOR RECURRING EXPENSES.
I DON'T THINK THAT'S SUSTAINABLE IF WE WANT TO DO IT.
I MEAN I'M JUST, YOU KNOW, WE CAN TALK ABOUT IT, BUT WE JUST NEED TO BE VERY INTENTIONAL IF WE ARE GONNA DO THAT.
AND IT NEEDS TO BE A ONE TIME THING TO ME.
LIKE I DON'T THINK WE CAN, YOU KNOW, YOU WOULDN'T DO THIS WITH YOUR HOME BUDGET, RIGHT? 'CAUSE IT'S NOT SUSTAINABLE.
WE DON'T WANNA RUN OUTTA MONEY.
WE HAVE A FIVE YEAR PROJECTION THAT SAYS WE'RE GONNA CONTINUE TO SPEND THOSE RESERVES IF WE CONTINUE TO BUDGET THE WAY WE'RE BUDGETING AND THE WAY WE HAVE BUDGETED IN THE PAST.
WE DON'T SPEND EVERYTHING WE BUDGET, WE HAVE THE ABILITY TO REDUCE IT THROUGHOUT THE YEAR IF WE NEED TO.
UM, SO I JUST THINK WE NEED TO RECONSIDER HOW WE'RE APPROACHING THIS.
[00:40:01]
ONE THING I FOR, OH, SORRY, ONE THING I FORGOT TO MENTION TOO IS AT THE END OF 26 THOUGH, FIRE STILL IS, HAS $6.8 MILLION IN RESERVE AND POLICE 12 MILLION JUST, OKAY, SO WE'RE NOT JUST 'CAUSE WE CAN THOUGH DOESN'T MEAN WE SHOULD.RIGHT? WELL I, I, I THINK WE NEED TO, AS A CITY, WE NEED, WE NEED, NEED TO TALK ABOUT RESERVES.
AND I DO THIS FROM MY FRIENDS IN ENGLAND WHO GO THROUGH WHAT'S CALLED A FIT FOR PURPOSE EVERY YEAR.
AND THAT MEANS IS THE STRUCTURE AND THE DESIRED OUTCOME FIT FOR THE PURPOSE THAT WE'RE INTENDING.
AND IT'S IMPORTANT TO LOOK AT THAT EVERY, UH, LET ME GIVE YOU AN EXAMPLE.
I COULD SAY ARGUE ACADEMICALLY THAT A 10% RESERVE IS NOT ENOUGH.
IN THE BLACK SALON EVENT, LET'S SAY REVENUES GO DOWN 20%, UH, INVESTMENT INCOME AND INVESTMENTS DROP OFF 30%.
I COULD ALSO ARGUE IF WE'RE SO STRICT ON COMPLIANCE AND REGULATORY END OF IT, THAT WE MIGHT AS WELL NOT HAVE RESERVES.
I MEAN THAT'S OVERSTATED, BUT RESERVES ARE THERE STRATEGICALLY TO BE USED.
I THINK THE GUARDRAIL THAT WE'RE MISSING AND WE NEED TO THINK ABOUT IS, UM, YOU KNOW, IF RESERVES ARE GOING TO BE USED, IF THEY'RE NOT FOR AN EXTRAORDINARY EVENT, THEN IT HAS TO BE ATTACHED TO, THAT HAS TO BE A PLAN OF HOW WE GET BACK TO IF WE TRULY HAVE A 10% DESIRED RESERVE AMOUNT, WHAT'S THE STRATEGIC PLAN TO GET BACK TO THAT? AND HOW LONG DOES THAT TAKE? UM, SO I, I MEAN, TO ME THAT THAT'S THE PIECE THAT'S MISSING.
I LOVE RESERVE, WELL WE CALL 'EM SURPLUS.
I HATE RESERVES 'CAUSE THAT'S CLAIMS, YOU KNOW, BUT, BUT THAT'S IMPORTANT.
IT'S IMPORTANT TO HAVE SURPLUS.
SO THAT, SO THAT WAS AN EXTREME ARGUMENT OF HAVING NONE.
BUT I MEAN, I THINK THEY SHOULD BE, MAYBE I'M NOT AS FAR OVER TO THAT SIDE AS PRESTON, BUT IF, IF WE HAVE TO USE 'EM, AND MAYBE WE HAVE TO USE 'EM FOR OPERATIONS BECAUSE SOMETHING EXTRAORDINARY HAPPENED THAT IMPACTED THAT.
BUT IF WE DO, THERE NEEDS TO BE SOMETHING ATTACHED TO HOW THAT IS CORRECTED TO WHAT WE WOULD CALL RATE ADEQUACY.
HOW DO WE GET BACK TO THAT SURPLUS FIGURE? AND I, I DON'T SEE THAT WE HAVE THAT, THAT'S MY, IT'S NOT MY PROBLEM THAT WE USE RESERVES.
IT'S HOW DO WE BUILD THEM BACK AND WHAT'S THE PLAN TO GET THERE? DOES THAT MAKE SENSE, KATHY? I MEAN I KNOW THAT'S A BIG PICTURE.
WELL, AND I THINK AS, AS WE TALK TOO ABOUT IT, BECAUSE WHAT WE DO SEE ACTUALLY HAPPENING IN, IN REALITY IS THEY AREN'T USING IT.
SO THAT IS SOMETHING DEFINITELY WE NEED TO THINK ABOUT.
HOW DO WE PRESENT THAT? BECAUSE, UM, I MEAN I'M, I'LL JUST USE AN ACADEMY AS, AS AN EXAMPLE.
SO LET'S SAY YOU HAVE NINE PEOPLE OR 10 PEOPLE IN AN ACADEMY, BUT IT TAKES YOU, I DON'T KNOW, NINE MONTHS OR SOMETHING TO TRAIN 'EM A YEAR TO ACTUALLY GET 'EM ON BOARD.
DO YOU GO AHEAD AND HAVE YOUR ACADEMY AND THEN COME BACK LATER AND ASK FOR THE MONEY FOR THEM? OR DO YOU DO IT BEFORE? WELL, LET'S, LET'S GET THE CHIEF UP HERE AND OKAY.
COULD YOU JUST STEP INTO, INTO A GREAT QUESTION.
HOLD ON A SECOND, MR. MERRI, IF YOU WOULD PLEASE.
UH, MS. PANS, IS IT CRAWFORD AND ASSOCIATES? IS THAT, IS THAT THE, THAT'S OUR PERFORMANCE.
THAT'S THE AUDIT FIRM THAT COMPILE, WHAT DO THEY SUGGEST THAT FUND BE? WHAT DO YOU MEAN? LIKE EMPLOYEES? HOW MUCH? YEAH, YOU KNOW, ISN IT LIKE 10, 12, 15 MILLION.
WELL, I'VE NEVER ASKED THAT QUESTION.
WE'VE JUST, I KNOW FROM, SINCE I'VE BEEN HERE, WE BUDGET FOR APPROVED POSITIONS, RIGHT? AND SO OUR BUDGET THIS YEAR IS KIND OF ODD 'CAUSE IT'S SO CONSERVATIVE BECAUSE OUR REVENUE'S DOWN AND WE'RE STILL BUDGETING FOR ALL OF THE APPROVED POSITIONS, BUT WE MAY NOT FILL 'EM.
AND THAT'S KIND OF WHAT WE'RE TALKING ABOUT WITH HIRING FREEZE ON, YOU KNOW, GENERAL FUND.
DO YOU KNOW THAT NUMBER CHIEF? I'M SURE MY FINANCE PARTNER IS GONNA, CAN YOU CORRECT ME IF I'M WRONG? BUT IT'S ALWAYS BEEN MY UNDERSTANDING THAT CRAWFORD AND ASSOCIATES HAS TARGETED 30% RESERVE, UH, BALANCE FOR TO BE THE APPROPRIATE NUMBER, UH, FOR THE POLICE FUND.
SO WHAT WOULD THAT BE? UH, AROUND $10 MILLION.
10 TO 12 IS, WHAT I TYPICALLY TELL PEOPLE IS, IS OUR TARGET, UH, FOR MAINTENANCE.
UH, SO, UH, JD YOUNGER POLICE DEPARTMENT, UH, JUST CAME TO GIVE A FEW COMMENTS AND, AND MAYBE ADDRESS SOME OF THE ISSUES THAT WERE BROUGHT UP.
THE FIRST THING I WOULD LIKE TO ADDRESS, IT'S A VERY SMALL NUMBER, BUT TO ME, VERY IMPORTANT FOR OUR CITIZENS AND FOR COUNSEL TO KNOW HOW WE HANDLE ASSET FORFEITURE FUND.
UH, SPECIFICALLY YOU'LL SEE IT SAYS REVENUE 25,000.
WE ARE NOT PROJECTING TO SEIZE ANY FUNDS.
THAT IS, THAT'S, THAT'S INCOME,
[00:45:01]
THAT'S INTEREST INCOME, UH, BASED ON THE BALANCES OF THOSE FUNDS.SO THE CITY HAS MADE AN INTENTIONAL, UH, DECISION THAT ENFORCEMENT SHOULD NOT FUND GOVERNMENT.
GOVERNMENT SHOULD FUND ENFORCEMENT.
AND WE WANT OUR CITIZENS TO KNOW THAT WE IN NO WAY, SHAPE OR FORM, UH, COUNT ASSET FORFEITURE AS PART OF THE WAY THAT WE FUND THIS GOVERNMENT.
AND SO I JUST WANNA BRING UP THAT YES, WE DO, UH, ATTEND, UH, TO RECEIVE ASSET FORFEITURE FUNDS, UH, AS WE'VE MADE KNOWN BEFORE.
WE PARTICIPATE IN A COUPLE DIFFERENT FEDERAL TASK FORCE ONE WITH THE DRUG ENFORCEMENT ADMINISTRATION, UH, ONE WITH THE FBI.
UH, AND WE ALSO HAVE SOME PART-TIME WITH THE, UH, US MARSHALS FEDERAL TASK FORCE, UH, WHICH TYPICALLY WILL RESULT IN THESE THINGS.
UH, BUT THEY'RE UNPREDICTABLE.
UH, THEY'RE LONG-TERM INVESTIGATIONS.
THEY INVOLVE SEVERAL ENTITIES.
AND SO OUR PERCENTAGE IS, IS UNKNOWN, UNCERTAIN.
UH, I JUST WANT YOU TO KNOW THAT, THAT WE'RE NOT TARGETING PEOPLE OR INDIVIDUALS TRYING TO MAKE INCOME FOR THIS CITY.
UH, BUT MORE IMPORTANTLY WHAT WE'RE TALKING ABOUT ON THE, ON THE PUBLIC SAFETY TAX FUND, I ALSO WANT OUR CITIZENS TO HEAR THAT THE QUESTIONS THAT COUNCIL AND MAYOR ARE ASKING ARE THE SAME QUESTIONS THAT DIRECTORS AND STAFF ARE TALKING ABOUT AS WELL.
UH, WE'RE CONCERNED ABOUT REVENUE AND HOW WE MAINTAIN THE SERVICES THE CITIZENS HAVE, UH, EXPECTED OF US GIVEN, UH, THE REVENUES THAT WE TAKE IN.
AND SO I THINK THIS IS A GREAT DISCUSSION.
UH, I, I'D HOPE NO ONE TAKES OFFENSE AT IT.
I THINK IT'S A GOOD EXERCISE FOR US TO KIND OF GO THROUGH WHAT ARE WE DOING? UH, AND I DON'T THINK IT REALLY EVER GETS OLD.
HEY, WHAT ARE WE DOING? WHERE ARE WE'RE AT? UH, TO THAT POINT, I WOULD SAY MY, MY PERSONAL APPROACH IS LOOKING AT CONTEXT.
AND SO LIKE IF YOU LOOK AT THE LAST SIX YEARS, WE HAD SOME ABNORMALLY HIGH REVENUE YEARS.
AND SO YOU CAN LOOK AT RESERVE FUND OR FUND BALANCE, UH, FOR THE POLICE DEPARTMENT SPECIFICALLY AND SEE THAT TRAJECTORY, UH, WHERE WE HAVE BEEN OVER THE LAST FIVE YEARS, WHICH KIND OF PUT US WHERE WE'RE AT TODAY, WHICH IS A $20 MILLION RESERVE FUND BALANCE.
WELL, IF YOU LOOK AT CRAWFORD AND ASSOCIATES RECOMMENDATION OF A 30% TARGET WILL BE 10 MILLION.
THAT LEAVES YOU ASKING WHY DO YOU HAVE 20 MILLION IN A FUND THAT IS INTENDED TO BE SPENT FOR PUBLIC SAFETY? AND WHAT I WOULD SUBMIT TO YOU IS WE HAVE IT FOR DISCUSSIONS JUST LIKE WE'RE HAVING TODAY, THAT WE UNDERSTAND IT'S A WAVE AND SOME YEARS IT'S UP AND SOME YEARS IT'S DOWN.
AND THAT DOESN'T MEAN IF WE'RE UP 4 MILLION, WE DON'T WORRY ABOUT IT.
AND IF WE'RE DOWN 4 MILLION, WE DON'T WORRY ABOUT IT.
I THINK WE'RE LOOKING FOR TRENDS LIKE WHAT YOU'RE TALKING ABOUT.
AND SO TO ME, FY 26 IS NOT AS MUCH OF A CONCERN AS FY 29.
ALRIGHT? LIKE, WHERE ARE WE HEADED? RIGHT? UM, BECAUSE THAT THREE OR FOUR YEARS GIVES US A CHANCE TO MOVE THE BOAT A LITTLE AT A TIME INSTEAD OF TRYING TO MAKE A HARD RIGHT.
UH, WHICH IS GONNA FLIP THE BOAT OVER.
AND SO I FEEL REALLY COMFORTABLE WHERE WE'RE AT TODAY, GIVEN OUR TREND OF PROJECTIONS, OUR TREND OF FUND USAGE.
UH, DOES THAT MEAN THAT I'M HAPPY THAT WE'RE PROJECTING TO GO FROM 19 TO 12? NO.
UH, DO I UNDERSTAND THAT, THAT FINANCE IS REALLY CONSERVATIVE WITH OUR REVENUE AND OUR EXPENSE PROJECTIONS TO MAKE SURE IF THERE'S ANY SURPRISES, THEY'RE TYPICALLY THE POSITIVE ONES AND NOT THE NEGATIVE ONES.
YES, I, I FEEL REALLY GOOD AND I THINK WE HAVE A GOOD TRACK HISTORY OF THAT.
UH, BUT THAT BEING SAID, EVEN IF WE WERE TO ENCOUNTER THE SCENARIO THAT IS BEING PRESENTED AT THE END OF FY 26, WE'RE STILL ABOVE CRAWFORD AND ASSOCIATES TARGET.
NOW DOES THAT MEAN WE CAN REPLICATE IN 27 WHAT WE DID IN 26, IF THAT ENDS UP BEING THE CASE? WELL, NO, THERE'S GONNA HAVE TO BE SOME HARD DECISIONS, UH, WHICH WOULD BRING ME BACK TO WHERE KATHY ALLUDED TO EARLIER, DIRECT COSTS FOR THE POLICE DEPARTMENT ARE 89% PERSONNEL.
AND SO JUST TO BE CLEAR, IF WE'RE TALKING ABOUT RAINY AND COSTS IT'S PERSONNEL, NOW WHEN YOU FACTOR IN ALLOCATIONS, WHICH IS ANOTHER $7.1 MILLION, UH, YEAH, I COULD TAKE 7.1 MILLION OFF THE TABLE AND WE'D BE JUST FINE.
NOW ALL YOUR OTHER DEPARTMENTS WOULD BE HURTING 'CAUSE THAT'S WHERE THAT MONEY GOES.
SO HR, IT, OTHER ADMIN SERVICES.
UH, SO I, BUT I JUST WANTED TO KNOW AS FAR AS CONTROLLING DIRECT COSTS, VERY SMALL WINDOW THERE.
WE CAN'T TURN OFF ELECTRICITY.
UH, WE HAVE SOME SHORT TERM LEVERS WE COULD PULL.
UH, CURRENTLY WE USE A NINE YEAR, 135,000 MILE TARGET ON OUR VEHICLES.
SOME GO LONGER, SOME GO SHORTER.
UH, BUT THERE'S SOME THINGS THERE.
UH, I THINK THE CITY'S PUT IN PLACE SOME REALLY GOOD, UH, MITIGATION MEASURES IN THE WAY THAT WE FUND WITH OUR LEASE RATE FOR VEHICLES.
UH, SO I KNOW THAT FIRE, I BELIEVE THAT FIRE WILL CONCUR THIS IF WE HAD TWO OR THREE YEARS DOWN THE ROAD WHERE WE REALLY HAD TO, TO DO SOME BELT TIGHTENING.
THERE'S SOME THINGS WE COULD DO WITH EXTENDING LIFE CYCLES OF CERTAIN TECHNOLOGY THINGS.
UH, BUT I JUST WANNA GIVE Y'ALL A LEVEL OF CONFIDENCE THAT WE'RE HAVING THE SAME DISCUSSIONS INTERNALLY THAT YOU'RE HAVING HERE IN THE PUBLIC, UM, THAT WE'RE JUST AS COMMITTED TO YOU TO MAKE SURE THAT WE'LL NEVER PROPOSE A BUDGET THAT SPINS US BELOW WHERE WE THINK IS REASONABLE OR THAT WE CAN SUSTAIN.
UM, AND IF YOU HAVE ANY OTHER QUESTIONS, I'D BE HAPPY TO ADDRESS 'EM.
I I'VE GOT A COUPLE OF COMMENTS
[00:50:01]
AND MAYBE A QUESTION IN HERE.UM, FIRST I WANT TO COMMENT ON WHAT YOU JUST SAID ABOUT THE WAY WE MANAGE OUR FLEET.
UM, I THINK THE WAY WE DO THIS IS INCREDIBLE.
UM, TRUST ME, I TRIED TO FIGURE OUT HOW TO FUND HIGHWAY PATROL CARS FOR SIX YEARS AND IT WAS ALWAYS A BATTLE BECAUSE IT WAS ALWAYS A ONE TIME EXPENDITURE APPROPRIATED BY THE LEGISLATURE AND WE HAD NO MECHANISM TO LITERALLY SET UP THAT SINKING FUND TO REPLACE THOSE VEHICLES.
SO THAT'S AMAZING AND, AND WE SHOULD ALL BE PROUD OF THAT.
UM, AND THAT'S KEITH AND BOB MAKE SURE THAT THEY GET CREDIT FOR IT AND THEIR STAFF FOR WHAT THEY DO THERE.
SO KATHY STARTED TO GO DOWN A PATH, AND I JUST WANNA COME BACK TO IT.
HOW OFTEN DO WE HAVE AN AN ACADEMY? UH, I'LL GIVE YOU AVERAGES.
UH, SO WE STARTED 'EM IN 2009.
WE'RE GONNA RUN OUR 12TH ACADEMY THIS YEAR.
UH, SO I WOULD SAY ON AVERAGE ABOUT EVERY 18 MONTHS, WE'VE GONE AS LONG AS THREE YEARS WITHOUT RUNNING ONE.
AND CURRENTLY WE'RE IN A CYCLE WHERE WE'VE RAN 'EM, THIS WILL BE OUR THIRD AND THREE YEARS.
UH, AND AS I'VE MENTIONED IN THE PREVIOUS, UH, WORKSHOPS, WE'RE GONNA BE IN A PERIOD OF, OF FLUCTUATION OVER THE NEXT TWO YEARS WITH RETIREMENTS AND THINGS.
UH, BUT, BUT ON AVERAGE EVERY 18 MONTHS.
BUT WE'RE IN A CYCLE RIGHT NOW.
AND I, I SAY THAT BECAUSE I LOOK AT THE ACADEMY THE WAY I LOOKED AT IT FOR 10 YEARS WITH STAY.
RIGHT? AND THAT'S A ONE TIME EXPENSE EVERY TIME YOU DO IT, IT'S A ONE TIME EXPENSE.
UM, AND UNFORTUNATELY A LOT OF THAT GETS ROLLED UP INTO WHAT LOOKS LIKE A RECURRING EXPENSE BECAUSE OF THE PAYROLL SIDE OF IT.
UM, SO, YOU KNOW, WHEN THERE ARE THINGS WE CAN DO THAT SHOW THAT IT, IT HELPS US GET CLOSER, RIGHT? AND, YOU KNOW, WE'VE HAD THE CONVERSATIONS ABOUT THE HIRING FREEZE AND THE ONE THING WE DON'T WANNA DO IS SHORTCHANGE POLICE OFFICERS ON THE STREET NO MATTER WHAT.
UM, AND I THINK ALL OF US HAVE BEEN PRETTY ADAMANT ABOUT THAT.
ONE IS THAT, YOU KNOW, YEAH, THERE MIGHT BE SOME ADMINISTRATIVE POSITIONS THAT YOU'RE GONNA HAVE TO DEAL WITH, BUT THAT'S WHAT EVERYONE'S DEALING WITH, RIGHT? BUT WE DON'T WANNA SHORTCHANGE OFFICERS ON THE STREETS, JUST LIKE ON THE FIRE DEPARTMENT SIDE.
WE DON'T WANNA SHORTCHANGE THAT.
UM, SO I I, I THINK IT'S REALLY GOOD DISCUSSION AND I MEAN, I, I THINK IF WE KNOW WHERE WE'RE HEADED, UM, AND WE CAN REALLY GET A BETTER LOOK AT HOW THIS IS PLAYING OUT, UM, I THINK WE CAN PUT TOGETHER A PLAN THAT DOES WHAT ALL OF US ARE TALKING ABOUT.
BECAUSE PART OF THIS IS NOT JUST ON THE POLICE DEPARTMENT, PART OF THIS IS ON THIS COUNCIL AND, AND THE CITIZENS OF EDMOND.
WE'VE GOTTA FIGURE OUT WHAT WE'RE GONNA DO TO INCREASE REVENUE OVERALL.
BECAUSE IF YOU THINK ABOUT WHAT POLICE DEPARTMENT GETS OUT OF THE, THE GENERAL FUND, UM, IF IT KEEPS GOING DOWN, IT MEANS YOU ALL ARE GETTING LESS.
WELL THAT JUST ADDS TO THE PROBLEM WE'RE TALKING ABOUT.
SO, YOU KNOW, IT'S, IT'S NOT ISOLATED TO YOU ALL.
IT'S NOT ISOLATED TO THE FIRE DEPARTMENT.
CHIEF, I, I JUST WANNA SAY, I, I THINK YOUR ANSWERS PROVIDE A LITTLE BIT ABOUT WHAT I WAS TALKING ABOUT.
YOU GUYS AREN'T CONSTANT 10 PERCENT'S NOTHING MAGICAL AND FACT YOUR OVERSHOOTING THAT AND THERE IS, EVEN THOUGH MAYBE HOPEFULLY IT COMES TO FRUITION, THERE'S A PLAN IF WE DO GO OVER THAT, HOW TO GAIN BACK.
AND SO THAT'S, TO ME, THAT'S THE IMPORTANT THINGS THAT EACH AND EVERY DEPARTMENT NEEDS TO STRIVE FOR.
JUST TO CLARIFY WHAT I WAS SAYING A LITTLE BIT, UM, I DON'T HAVE ANY PROBLEM USING RESERVES.
IN FACT, I THINK USING 'EM FOR ONE-OFFS, LIKE, YOU KNOW, FIRE STATION OR WHATEVER, YOU KNOW, YOUR TRAINING FACILITY MAKES TOTAL SENSE EVEN IN, EVEN IN A DOWN YEAR.
IF OUR RESERVES ARE BIT, ARE HIGH, THEN WE COULD DO THAT.
MY CONCERN IS WHEN YOU, WHEN YOUR COST IS 89% PEOPLE AND WE HIRE UP TO A POINT THAT'S ABOVE OUR ANNUAL RECURRING REVENUE, THAT THIS IS JUST NOT SUSTAINABLE.
AND, AND THE DANGER OF IT IS YOU GET A FEW YEARS DOWN THE ROAD AND WE'RE WAY OVERSTAFFED, RIGHT? AND WE DON'T WANNA SEE THAT HAPPEN.
AND SO, UM, I DON'T KNOW, YOU KNOW, LIKE WE CAN, WE CAN PUNT THIS TO NEXT YEAR AND THEN HAVE THE SAME DISCUSSION IF THINGS ARE THE WAY THEY ARE, IF THAT'S AN OPTION.
BUT I DON'T WANNA SEE US STAFF UP TO A POINT THAT'S NOT SUSTAINABLE AT THE EXPENSE OF THOSE EMPLOYEES.
I THINK WE NEED TO HAVE A PLAN THAT ON THE RECURRING SIDE OF OUR REVENUE THAT'S SUSTAINABLE.
THANK YOU CHIEF CHAD WEAVER, REV FIRE, UH, GOING TO THE FIRE DEPARTMENT'S BUDGET.
UH, THIS IS A, THIS IS A YEAR THAT WE WERE OPENING A FIRE STATION, AND SO IT'S A NEW FIRE STATION THAT WE, WE TRADITIONALLY, IT'S COME OUT OF THE CIP FUND.
IT CAME OUTTA RESERVES THIS YEAR, CLOSE TO $8 MILLION WITH F AND E IN THE BUILD AND THE ARCHITECTURAL DESIGN AND IN THE NEW ENGINE THAT CAME OFF OF IT TOO, UH, $830,000 FOR THAT ENGINE BACK 40
[00:55:01]
MONTHS AGO WHEN WE BOUGHT IT.AND THEN THIS YEAR, THE PERSONNEL COST WITH 15 PERSONNEL BEING ADDED TO OUR DEPARTMENT, IT IT IS $1.5 MILLION MORE THIS YEAR.
UM, AND SO THE, THE ONE OFFS, YEAH, I, I UNDERSTAND THAT.
BUT, UM, GOING THROUGH THE EBBS AND FLOWS, AND THIS IS THE TOOL THAT WE USE TO KIND OF WATCH AND FORECAST OUT, AND WE DON'T EVER STAY FULLY STAFFED.
WE TRY TO, WE, WE, WE DO OUR BEST TO, LIKE, WE, WE WERE TRYING TO BE FULLY STAFFED IN DECEMBER, BUT I'M SEEING RETIREMENTS COME IN PROBABLY MAY AND JUNE.
SO WE'RE GONNA HAVE THOSE WHERE PERSONAL COSTS ARE BUDGETED AT THE MAX, AND THEN WE'RE GONNA SEE THOSE SAVINGS A LITTLE BIT HERE AND THERE UNTIL WE CAN GET FULLY STAFFED AGAIN, AND THEN WE'LL HAVE MORE RETIREMENTS.
SO IT, IT IS SOMETHING THAT, YOU KNOW, I, I THINK THE ECONOMY WILL RECOVER AND I CAN SEE OUR, OUR OUR, UH, OUR RESERVES RECOVER AS WELL BECAUSE THERE, YOU KNOW, LOOKING OVER THE LAST FIVE YEARS, LIKE CHIEF YOUNGER SAID THAT THEY, THAT THERE HAS BEEN EBBS AND FLOWS, BUT THIS YEAR IS A, IS A KIND OF A ONE-OFF FOR THE FIRE DEPARTMENT WITH OPENING THE STATION AND ALL THE COSTS THAT GO IN WITH THAT AND CAME IN OUR RESERVES BECAUSE WE, WE WERE SITTING ON OVER $20 MILLION IN RESERVES AND WE NEEDED TO DO SOMETHING TO UP OUR SERVICE WITH THE CITIZENS.
AND THAT WAS SOMETHING THAT WE, WE MADE A DECISION TO DO.
BUT IT LOOKS LIKE WE'RE USING THE RESERVES FOR RECURRING EXPENSES.
RIGHT? AGAIN, BACK TO WHAT I SAID, WELL, WE GOT A GRANT THIS YEAR, A 50 50 ARPA GRANT TO INCREASE THE SERVICES THAT OUR, UH, HAVE A MAINTENANCE BUILDING OUR FIRE TRAINING GROUNDS TO HELP OUR VEHICLE MAINTENANCE AND THE FIRE DEPARTMENT AS WELL.
AND WE'RE TRAINED, HOPEFULLY THAT'LL, THAT'LL HELP US BE ABLE TO GET VEHICLES IN SERVICE, KEEPING 'EM IN SERVICE LONGER AND DO THAT.
AND THIS YEAR WITH THE $1.5 MILLION THAT YOU'RE SEEING AND THE 3 MILLION THAT YOU'RE SEEING FOR THE, UH, CAPITAL, IT, IT IS, IT'S, IT'S, THOSE ARE ONE-OFFS.
THOSE ARE, I HAVE 80% THAT WE CAN CONTROL WITH OUR PERSONNEL COSTS AND WITH THE, UH, PHYSICIANS WE HAVE.
BUT THIS YEAR, JUST LOOKING AT, THERE'S WAYS PROJECTING OUT WITH OUR PERSONNEL COSTS.
IT LOOKS LIKE THIS YEAR WE'LL BE CARRYING ABOUT $2 MILLION OVER INTO NEXT YEAR'S BUDGET 'CAUSE OF PERSONNEL COSTS.
'CAUSE WE WEREN'T FULLY STAFFED AT ALL THIS YEAR.
AND LIKE, LIKE I SAID, THIS, THIS IS A TOOL THAT WE USE TO TRY TO PROJECT OUT.
AND WE, WE DON'T WANT TO USE RESERVES LIKE THAT.
BUT WE SHOULD HAVE 12 MILLION BY THE TIME THE CITY YEAR ENDS IN OUR RESERVES.
AND HOPEFULLY WE CAN BUILD THAT BACK UP ONCE AGAIN.
BUT WE'LL BE WATCHING IT TO MAKE SURE WE CAN, I THINK THIS IS A, A BIG CONVERSATION THAT'S GONNA CONTINUE, UM, OVER THE NEXT YEAR AS WE WORK ON A LOT OF THINGS.
SO, UM, 'CAUSE WE KNOW THAT AT SOME POINT IN TIME WE'RE GONNA HAVE TO BE TALKING ABOUT ANOTHER FIRE STATION EAST OF THE INTERSTATE.
AND WE NEED TO START THINKING ABOUT HOW WE'RE GONNA PAY FOR IT.
SO, AND THAT'S SOMETHING THAT, YOU KNOW, CHIEF GOODMAN WAS VERY, YOU PROJECTED THAT OUT.
WE, WE GOT LAND FOR STATION THREE LAST YEAR AND WE ALSO GOT LAND FOR STATION, A STATION PROJECTED SEVEN AS EAST EDMOND GROWS.
AND SO THOSE, THOSE ARE SOME OTHER THINGS THAT CAME OUT THAT WOULD COST MORE TOMORROW IF WE DIDN'T GET 'EM TODAY.
SO WE'VE HAVE FOR A FEW YEARS TILL THE CALL VOLUME INCREASES IN THAT AREA AND WE CAN JUSTIFY A STATION.
MAYOR, COUNCIL, HAVE ANY MORE QUESTIONS? I THINK WE'RE GOOD FOR NOW.
I'M SURE WE'LL HAVE MORE QUESTIONS, BUT ALRIGHT.
OKAY MAYOR, I'LL BE RIGHT BACK.
KATHY, WE'RE RUNNING SHORT ON TIME HERE SO, OKAY, SO YOU WANT ME FLIP ON THROUGH? ALRIGHT THEN I'LL JUST QUICKLY DO, I DON'T EVEN LIKE SAY MUCH ABOUT IT.
THE 1 47, YOU WANTED MORE DETAIL ABOUT WHAT WAS IN THERE IN A NUTSHELL.
WHOLESALE ELECTRIC PURCHASE WAS 70 MILLION OF IT.
CONTRACT SERVICES WAS ANOTHER 30, SO A HUNDRED MILLION IS RIGHT THERE.
FEES, ELECTRICITY COSTS, AND THEN SO ON.
AND, UM, SO SHOWED THE WHOLE 147 MILLION.
UM, I WAS, I WAS GONNA TALK JUST A LITTLE BIT ABOUT THE CONTRACT SERVICES.
YOU CAN SEE THAT'S $26 MILLION.
AND I'LL QUICKLY JUST LET YOU KNOW, CONTRACT SERVICES HAS SOME, IT, LIKE ALL OF OUR DONATIONS ARE IN THERE.
SO SOMETIMES IT'S THINGS THAT YOU'RE NOT GONNA WANNA CUT
AND, AND AS I WAS LOOKING THROUGH, LILY, MOST THINGS IN THESE CONTRACT SERVICES, UM, ARE A MR CONTRACTS IN THERE.
1.3 MILLION OR 1.3 MILLION AND IT'S JUST IN THESE, SORRY.
AND IT'S IN THESE JUST DIFFERENT PLACES.
BUT THE $10 MILLION OVER HERE IN INTERNAL SERVICE FUNDS THAT MAY, MOST OF THAT IS $5 MILLION IN IT AND IT'S GONNA BE ALL OF OUR SUPPORT, ALL OUR DIFFERENT SOFTWARES.
SO I DIDN'T WANT YOU TO LIKE JUST THINK, OH, WELL MY GOSH, WE'RE SPENDING $10 MILLION IN CONTRACT SERVICES, BUT IT'S BENEFITS CONSULTING IN GROUP INSURANCE, CITY MANAGER IS MOVING EXPENSES AND THAT TYPE TYPE OF THING.
UM, FIELD SERVICES 1.5 MILLION IN WATER LEAKS.
[01:00:01]
OF THINGS LIKE THAT.UM, AND I THINK I HOPEFULLY YOU'VE KIND OF HAD A, A CHANCE TO LOOK OVER THAT IT, WERE THERE ANY QUESTIONS IN CON IN CONTRACT SERVICES OR CONSULTING? WELL YOU SENT ME THAT SPREADSHEET.
I'VE GOT LOTS OF QUESTIONS, BUT WE DON'T HAVE TIME TO GO THROUGH TIME.
THOSE ISSUES TODAY, I THINK WE'RE, WE'RE NOT NECESSARILY USING THAT GROUP CORRECTLY, BUT ONCE AGAIN, IT'S SOMETHING WE CAN WORK ON.
OKAY, WELL I'M GONNA MOVE ON REAL QUICKLY THERE SO YOU CAN HAVE YOUR QUESTIONS.
BUT THIS WAS OUR ORIGINAL SLIDE ON OUR, IN OUR DIRECT COSTS, OUR $413 MILLION PROPOSED BUDGET.
IT WAS JUST PRESENTED A LITTLE BIT DIFFERENTLY.
AND UM, SO THESE ARE KIND OF CATEGORIES, YOU KNOW, IF IT'S A PRINCIPAL IN INTEREST OR PARK AND REC, BUT THE ECONOMIC IN INFRASTRUCTURE AND OTHER ACTIVITIES, YOU HAD A QUESTION ON WHAT THAT WAS.
SO THE ECONOMIC INFRASTRUCTURE IS TIF 500,000 IS BUDGETED AND THAT IS PER AGREEMENT.
THEY'VE MET THEIR, THEIR REQUIREMENTS IN THEIR AGREEMENT AND IT'S A CERTAIN AMOUNT OF TIME AFTER THEY'RE ISSUED THEIR CERTIFICATE OF OCCUPANCY, WE'RE GOING TO PAY THEM 500,000.
SO THAT HAS BEEN ACCOMPLISHED AND SO WE'LL BE PAYING THAT.
AND THEN THE OTHER IS A HOTEL REBATES THAT WE PAY TO, UH, ON THE SHOWBIZ AND THE HILTON, THE OTHER ACTIVITIES, THE REASON IT ENDS UP IN THAT CATEGORY IS IT JUST, IT'S NOT PARK AND REC, IT'S NOT HEALTH AND WELFARE.
AND SO IT ENDS UP IN OTHER, AND SO IT'S JUST THINGS LIKE VISIT ADMIN, THEY HAVE ADVERTISING AND SPONSORSHIPS.
UH, OUR, OUR, UH, DONATIONS ARE THERE, A GRANT IS THERE.
SO IT'S JUST, IT'S THINGS THAT DON'T HAVE ANOTHER HOME IS WHY IT, IT ENDS UP THERE.
SO HOSPITAL SALES TRUST, THAT'S JUST BANK CHARGES.
SO IT'S JUST MISCELLANEOUS THINGS LIKE THAT.
UM, YOU HAVE ANY QUESTIONS ON THAT? OKAY, $20 REAL PROPERTY LOOKS.
I DON'T EVEN KNOW WHAT THAT WAS, BUT I COULD FIND OUT IF YOU
SO, AND THEN, SO OUR NEXT STEPS ARE JUST WHATEVER YOU ALL, YOU KNOW, YOUR PLEASURE IS AS FAR AS THIS BUDGET.
IF, IF WE COULD RECEIVE THOSE REQUESTS, UM, WE'LL GET THOSE UPDATED.
RIGHT NOW OUR BUDGET ADOPTION IS SCHEDULED FOR JUNE 9TH.
UM, WE, WE TECHNICALLY DO HAVE TILL JUNE 23RD AND YOU JUST SO HAPPEN TO HAVE A MEETING THAT DAY.
SO ANYWAY, UM, ANY, ANY CHANGES THAT YOU WANNA MAKE, IF WE CAN UNDERSTAND WHAT THAT IS, WE CAN GET 'EM DONE AND AND GET THE BUDGET FILED.
I'M NOT SURE AND I DON'T KNOW POSSIBLY MADELINE YOU COULD, COULD HELP WITH THIS, BUT IF WE DON'T HAVE A BUDGET JULY 1ST, I'M NOT SURE IF WE CAN SPEND MONEY, SO, RIGHT.
SO, SO WE, SO ANYWAY, THAT'S OUR GOAL RIGHT NOW.
UM, BUT JU JUNE 23RD, OUR DROP DEAD DATE TO GET IT ADOPTED AND THEN, YOU KNOW, SEVEN DAYS LATER OUR YEAR STARTS.
SO, UM, AND THEN WE TRANSMIT IT.
SO I THINK, OKAY, I DON'T HAVE THE OTHER SLIDES.
UM, WE'RE WE, WE'LL JUST HOLD OFF ON THAT.
WE'RE GONNA, I'VE TALKED TO RANDY THIS MORNING, UM, WE'RE GONNA HAVE ANOTHER HEARING.
UM, WHAT DO WE CITE NEXT WEDNESDAY, WEDNESDAY, TOMORROW.
JUNE 4TH AT 8:00 AM UM, BECAUSE WE KNEW WE COULDN'T GET THROUGH ALL THE QUESTIONS.
UM, ONE OF THE THINGS THAT I BROUGHT UP WAS IF WE TOOK THOSE UNFILLED POSITIONS OUT AS FAR AS THE FUNDING GOES, I'M NOT SAYING WE REMOVE AUTHORIZATION, I'M SIMPLY SAYING WE DON'T FUND THEM.
'CAUSE WE'RE HAVING A HIRING FREEZE AND WE TAKE THAT MONEY OUT.
HOW CLOSE DOES THAT GET US TO THE 10% RESERVE WE'VE BEEN TALKING ABOUT, I THINK BEST GENERAL FUND THAT WE'RE TALKING ABOUT.
AND SO THE GENERAL FUND PIECE WAS ONLY AROUND 500,000.
WE NEED 880 FOR EVERY PERCENT.
SO I THINK JUST TAKING THAT OUT ALONE AND EVEN IF WE ADDED IN A LITTLE BIT FROM INTERNAL SERVICE FUNDS, THAT WOULD COME OVER PROBABLY 8.25.
UM, I DID LOOK AT SOME OF THE OTHER THINGS THAT WE'RE SPENDING AND IT, IT DOES REALLY FALL INTO THAT CONTRACT SERVICES.
A LOT OF THAT STUFF'S THERE, BUT IF YOU REALLY LOOK THROUGH IT, THERE'S A LOT THAT'S WOULD BE DIFFICULT TO CUT.
AND SO, UM, IT WOULD PROBABLY HAVE TO BE AN OVERALL, LIKE EVERYBODY CUT YOUR TRAVEL.
I MEAN, YOU KNOW, EVEN OUR TRAVEL AND OUR GENERAL FUND WAS ONLY LIKE 54,000.
SO, UM, THAT'S A DISCUSSION AS FAR AS TO GET TO THE 10%.
BUT IF WE TOOK THEM OUT, I'D LIKE TO KNOW WHAT THAT LOOKS LIKE WHEN WE GET BACK TOGETHER NEXT WEEK.
IF WE, IF A COUPLE OF SCENARIOS, ONE WOULD BE IF WE, IF WE TAKE OUT THAT FUNDING OKAY.
UM, FOR VACANT POSITIONS AND THAT EXCLUDES THAT WOULD EXCLUDE THE POLICE OFFICER, THE FIELD OFFICERS, AS WELL AS FIRE, UM, OUT IN THE FIELD.
[01:05:01]
KEEP THAT IN PLACE.BUT EVERYBODY ELSE, LET'S PULL THAT OUT AND SEE WHERE IT GETS US.
I MEAN IF WE'RE GONNA BE SERIOUS ABOUT THIS, WE ALL NEED TO BE SERIOUS ABOUT IT.
AND IF WE'RE SUPPOSED TO HAVE 10%, WHY ARE WE NOT SHOOTING FOR IT? UM, I, I THINK PERSONALLY, IF THE CLOSER WE CAN GET TO THAT, UM, THE BETTER OFF WE'RE GONNA BE.
I MEAN WE KNOW THAT WE'RE, WE'VE GOT A LOT OF WORK OVER THE NEXT YEAR BECAUSE WE WANNA MAKE THIS A WHOLE LOT EASIER NEXT YEAR.
UM, AND YOU'VE GOT A WHOLE DIFFERENT MINDSET SITTING UP HERE THIS TIME AROUND THAN YOU DID A YEAR AGO.
SO, AND I APPRECIATE EVERYTHING THAT EVERYBODY HAS DONE AND I HAVE HAD NOTHING BUT GREAT INPUT AND, AND IDEAS WHEN I'VE TALKED TO DIFFERENT PEOPLE.
AND HONESTLY, STAFF ACROSS THE WHOLE CITY HAS JUST BEEN SO HELPFUL AND, AND I CAN TELL YOU THAT, YOU KNOW, MATT WILL BE BACK AND HE'LL FINISH CLEANING UP WHAT HE STARTED FOR US TO MAKE IT EASIER TO LOOK AT SOME THINGS.
UM, AND IT REALLY, I, I DON'T KNOW ABOUT PRESTON 'CAUSE I KNOW PRESTON SAW THE SAME SPREADSHEET, BUT IT REALLY HELPED ME DIG IN AND AND THINK ABOUT WHERE THE MONEY IS.
WELL WE'LL BE ABLE TO DEVELOP SOME REPORTING THAT'LL HELP YOU.
WE'RE STILL ON TARGET FOR JUNE 9TH? YES.
ALRIGHT, OTHER COMMENTS, QUESTIONS, ANYTHING ELSE Y'ALL WANNA SEE THAT YOU HAVEN'T ALREADY ASKED FOR? I KNOW THAT KATHY HAS A LIST
MAGGIE, YOU GOT ANYTHING? I'M GOOD.
COUNCILMAN MOORE, YOU GOT ANYTHING ELSE? ALL GOOD? WE'RE GOOD.
WELL AT THIS POINT WE'RE GONNA ASK FOR SOME PUBLIC COMMENTS SO UH, IF THERE'S ANYONE IN THE AUDIENCE FROM THE PUBLIC THAT WOULD LIKE TO COMMENT, PLEASE COME RIGHT ON UP HERE.
BE SURE TO STATE YOUR NAME AND ADDRESS FOR US AND APPRECIATE IT.
ENJOYED THE DISCUSSION AND APPRECIATE THE STAFF OF PULLING ALL IT TOGETHER.
'CAUSE IT'S NOT EASY HAVING DONE THAT BEFORE.
IN MY PREVIOUS WORLD, UM, TAYLOR WILSON, 7, 4, 8 DUNE CIRCLE, EDMOND, OKLAHOMA WOULD HIGHLY SUGGEST YOU GET TO THE 10% AS THE PREVIOUS POLICY OF THE CITY.
IT'S BUILDS RESERVES, IT BUILDS FLEXIBILITY.
YOU CAN ALWAYS ADD, IF REVENUE CHANGES, YOU CAN ALWAYS ADD MONEY BACK IN AND CHANGE THAT.
I WOULD HIGHLY FOLLOW WHAT YOU SAID, MR. MAYOR, RELATIVE TO THE 54 POSITION AT LEAST I HAVEN'T BEEN ABLE TO SEE HOW MANY OF THOSE POSITIONS ARE UNFILLED BECAUSE THOSE ARE BUDGETED DOLLARS THAT HISTORICALLY IN MY OPINION HAVE BEEN USED AS UM, OPPORTUNITIES TO HAVE EXCESS FUNDS AND HAS GROWN RESERVES BUT NOT AS PART OF A STRATEGIC PLAN AS PART OF THE STRATEGY.
AND THAT'S WHAT I WOULD, YOU KNOW, I MENTIONED THIS AT THE CIP IS, IS IS DO A FORMAL RESERVE STUDY IN EVERY AREA.
'CAUSE MY CONTENTION IS, IS THAT WE ARE UNDERSERVED, NOT DEPENDING ON EACH INDIVIDUAL DEPARTMENT, BUT THE GLOBAL IS UNDERSERVED FOR WHAT WE HAVE OWNED AND WHAT, JUST TO MAINTAIN WHAT WE HAVE.
'CAUSE WHEN YOU START LOOKING AT ALL THE ASSETS, THINGS COST A LOT MORE THAN WHAT PEOPLE FULLY LOOK WHEN YOU START PUTTING DOLLARS ON CENTS ON THE AMBULANCE CONTRACT.
SO THAT WAS THE PREVIOUS, UH, CONTRACT.
I JUST, WHAT IT DID, IT WAS A REVENUE OR A MARGIN PRODUCING AREA.
IT'S 300, 300,000 A YEAR BEING USED AND THE RESERVE IS GOING DOWN BY 300,000.
SO THAT WAS A STRATEGIC DECISION, WHICH IS WHAT THIS BODY'S ROLE IS TO MAKE.
BUT JUST MAKE SURE YOU KNEW THAT THAT DECISION WAS BEING MADE WITH THAT STRUCTURE.
ECHO THE FLEET COMMENT, EXCELLENT STRATEGY FINANCIALLY, HOW IT'S WORKING.
BUT IT DOES HIGHLIGHT SOME THINGS LIKE THE FIRE LOOKS LIKE FIRE'S NOT BUYING ANYTHING IN FIVE YEARS OR ENCUMBERING ANYTHING FOR FIVE YEARS.
AND THEN ELECTRIC HAS ZERO IN THEIR STRATEGY AS THEY WORK THROUGH ECHO.
THE 89% AS THE STAFF RATE AS YOUR LARGEST PERCENTAGE OF STAFF GROWS AT THREE TO FIVE, WHICH WE WANT TO BE A HIGHER PAYING WELL COMPENSATED CITY, WHICH WE ARE.
WHEN YOU LOOK AT APPLICATIONS FOR CERTAIN POSITIONS, IT'S MATH WISE, IT'S GONNA OVERRUN ITSELF.
IF WE SIT IN A LOW SALES TAX AND WE ARE GONNA STAY IN A LOWER SALES TAX IS GONNA GROW LESS THAN PROPERTY TAXES.
SO THE SCHOOLS WILL END UP WITH MORE MONEY THAN THE CITY.
STRATEGICALLY FROM A COMMUNITY PERSPECTIVE, ONE QUESTION I DIDN'T SEE THAT I WOULD
[01:10:01]
LIKE TO SEE IS ROADS.ROADS WAS A BIG THING THAT WAS LAST YEAR.
I BELIEVE WE'RE FUNDING LESS FOROUGH ROADS THAN MORE.
AND IF WE DON'T FUND $11 MILLION A YEAR, WE'RE GONNA GO BACKWARDS ON ROADS.
AND THAT'S A KEY IN MY OPINION, OF A CITY INITIATIVE.
SO DOLLARS HAVE TO BE FOUND FOR THAT OR SAID WE'RE NOT GONNA BE ABLE TO DO IT.
AND THEN LASTLY, JUST 'CAUSE I CAN'T BE HERE TONIGHT, THE TRANSIT STUDY LONG RANGE PLAN IS ON THE AGENDA FOR TONIGHT'S MEETING.
I SAW A BEAUTIFUL 26 PAGE, UH, PRESENTATION, NOT ONE WHERE I SEE HOW MUCH IT COSTS.
AND THAT TO ME IS A LITTLE BIT OF A STRATEGY OF, RIGHT.
THESE ARE ALL THINGS THAT ARE NICE TO HAVE BUT NOT TALK TO WHO HAS TO PAY FOR 'EM AND WHAT DOES IT TRULY COST.
ANYONE ELSE? ANY CLOSING REMARKS FROM ANYONE? THANKS AGAIN, STEPH.
PUTTING YOU THROUGH THE RINGER A LITTLE BIT.
THIS WILL BE GREAT, BUT IT'S ALL IN THE INTEREST OF MAKING IT BETTER.
AND WE'LL DO IT ALL AGAIN NEXT WEDNESDAY.
SO WITH THAT, I'M GOING TO CALL THIS MEETING ADJOURNED.
WE NEED A, DO WE NEED A MOTION FOR THAT? I WOULD SUGGEST ONE.
THERE'S A MOTION AND A SECOND.
IS THAT SECOND? WHATEVER IT TAKES.
WELL, IN THAT CASE IT'S A THIRD.