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[1. Call to Order.]
SPECIAL CITY COUNCIL MEETING, BUDGET KICKOFF WORKSHOP ON MONDAY, FEBRUARY 9TH, 2026 TO ORDER.[2. Presentation, Discussion, and Consideration of the Following Items Related to the Fiscal Year 2026-27 Budget: Presentation of an Introduction and Background about the Budget. Presentation and Discussion of Economic Outlook, Presented by Dr. Russell Evans, including: Economic Outlook Covering Conditions in the United States, Oklahoma, Oklahoma City, and Edmond. Presentation, Discussion, and Consideration of Proposed Fiscal Year 2026-27 Budget Process and Timeline, including: Discussion and Consideration of a 2026-27 Budget Workshop Schedule; Discussion and Consideration of Topics to be Addressed in Future 2026-27 Budget Workshops; and Discussion and Consideration of Dates for the Completion of the Proposed Budget, Budget Hearing, and Goal Date for Budget Approval. Presentation, Discussion, and Consideration of Fiscal Year 2026-27 Budget Priorities to be Placed on Future Meeting Agendas for Consideration, including: Discussion and Consideration of Budget Priorities to be Placed on Future Meetings for Consideration; and Discussion and Consideration of Directing City Staff to Prepare Necessary Materials for Budget Priorities to be Considered at Future Meetings.]
ON THE AGENDA IS A PRESENTATION, DISCUSSION, AND CONSIDERATION OF THE FOLLOWING ITEMS RELATED TO THE FISCAL YEAR 26, 27 BUDGET.DO Y'ALL WANT ME TO READ ALL THAT
AT THAT POINT THEN, WHO'S KICKING THIS OFF? MR. CITY MANAGER.
IS IT KATHY? IS IT YOU? IT'S YOU.
I'M THE DIRECTOR OF FINANCE FOR THE CITY OF EDMOND.
AND, UM, I'LL BE KICKING THIS OFF, SO LET ME GET TO THE NEXT PAGE.
SO, WE'LL JUST, THE, THE PURPOSE OF THIS MEETING REALLY IS TO REALLY GET YOU GUYS YOUR THOUGHTS, AND IF YOU COULD GIVE ME ANY GUIDANCE, I'D APPRECIATE IT.
UM, BUT REALLY IT'S JUST TO KIND OF GATHER, UM, WHAT YOUR EXPECTATIONS ARE AND, UM, AS WE MOVE FORWARD WITH ALL OF OUR BUDGETS, OUR INDIVIDUAL BUDGETS, WE'LL WORK ALL THESE EXPECTATIONS INTO IT.
WE ARE CURRENTLY IN THE, UM, HAVING ALL OF OUR BUDGET MEETINGS WITH ALL OF OUR VARIOUS DEPARTMENTS.
THEY'RE GOING VERY WELL AS FAR AS I'M CONCERNED.
YOU MIGHT WANNA ASK SOME OF THE OTHER DEPARTMENT HEADS, BUT, UM, BUT WE'RE, WE'RE WORKING THROUGH IT.
WE SHOULD HAVE, UH, THOSE FINISHED BY THE END OF FEBRUARY.
UM, BASICALLY JUST TO GIVE EVERYBODY IN THE PUBLIC AND COUNCIL A LITTLE BIT OF BACKGROUND ON WHAT WE DO EACH YEAR.
OUR FISCAL YEAR END IS JUNE 30TH FOR BOTH FINANCIALS AND OUR BUDGET.
UM, BASICALLY THE BUDGET'S GOING TO COVER TWO DIFFERENT TYPES OF ACTIVITIES.
THEY'RE GOVERNMENTAL AND BUSINESS TYPE, BUSINESS TYPE ARE THINGS THAT GENERATE FROM FEE INCOME AND GOVERNMENTAL THINGS.
GENERALLY, THEIR FUNDS ARE, ARE THEIR REVENUES CREATED THROUGH TAXES, CHARGES FOR SERVICES, GRANTS, THAT TYPE OF THING.
SO AGAIN, WE RECENTLY PASSED, OR THE ADMIN VOTERS PASSED 1% GENERAL FUND SALES TAX THAT EXPIRES IN MARCH OF 2027.
AND WE ALSO, UH, PASSED A CAPITAL IMPROVEMENT PROJECT SALES TAX OF 0.5% THAT ALSO EXPIRES IN MARCH OF 2027.
SO THIS EXTENDS BOTH OF THOSE TAXES FOR 10 YEARS TILL MARCH OF 2037.
AND THE COLLECTIONS WILL BE EFFECTIVE APRIL 1ST FOR BOTH OF THOSE, THE, THOSE TWO TAXES GENERATED SALES TAX OF APPRO APPROXIMATELY 35 MILLION BETWEEN THE TWO OF THEM.
SO APRIL 1ST, ONE THING THAT THE CAPITAL IMPROVEMENT PROJECTS TAX WILL BE USED IN DEDICATED FOR ROADS AND REPAIRS TO ROADS.
SO EFFECTIVE APRIL 1ST, THAT'S WHEN WE'LL START, UH, KEEPING ALL OF THAT REVENUE SO THAT YOU'LL, AND WE'LL DESIGNATE IT SEPARATELY SO YOU'LL KNOW EXACTLY HOW MUCH WE'RE BRINGING IN THAT IS DEDICATED STRICTLY TO ROADS.
UM, ONE THING TOO THAT WE MIGHT POINT OUT TOO IS THAT EDMOND IS THE LOWEST SALES TAX RATE OF ANY OF OUR PEER CITIES WITH THIS GRAPH SHOWN ABOVE THE HIGHEST BEING PIEDMONT, WHICH IS AT 9.85%.
SO, UH, EVERY 1% GENERATES APPROXIMATELY 23 MILLION IN SALES TAX.
JUST TO GIVE YOU A LITTLE BIT OF PERSPECTIVE.
WE HAVE, UM, DR. RUSSELL EVANS THAT COMES ANNUALLY AND GIVES US A FINANCIAL OR ECONOMIC OUTLOOK FOR OUR, OUR AREA.
UM, OUR STATE IN NEIGHBORING CITY, OKLAHOMA CITY PROVIDES A LOT OF, UM, INSIGHT INTO WHAT'S GOING ON RIGHT NOW.
SO I'LL TURN IT OVER TO DR. EVANS.
THANK YOU, COUNSEL FOR THE INVITATION.
I'M EXCITED TO HAVE AN OPPORTUNITY TO, TO VISIT KIND OF IN, IN, UH, MY OWN BACKYARD AND, AND BE ABLE TO LEAVE A CAMPUS OFFICE AND RUN DOWNTOWN AND, AND SHARE A FEW REMARKS ABOUT THE NATIONAL ECONOMY.
MY OBJECTIVE TODAY IS JUST TO TAKE 10 OR 12 MINUTES AND KIND OF SET THE STAGE FOR SOME OF THE CONSIDERATIONS THAT, UM, UH, THAT MIGHT BE BEFORE YOU, AS YOU, AS YOU GO THROUGH A, A NEW BUDGET CYCLE.
SO, LOTS OF INTERESTING THINGS HAPPENING IN THE ECONOMY.
UM, I JUST GOT BACK FOR A, A MEETING AT THE FEDERAL RESERVE OF KANSAS CITY WITH REPRESENTATIVES FROM EACH OF THE STATES OF, OF
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THE 10 DISTRICTS.UM, AND SO IT WAS INTERESTING TO HEAR HOW COLORADO AND WYOMING AND, UH, NEBRASKA AND KANSAS, UH, MISSOURI ARE ALL SORT OF DEALING WITH SOME OF THE SAME CHALLENGES THAT WE'RE FACING IN OKLAHOMA.
AND SO SOME OF THE THINGS THAT I'LL SHARE TODAY, I'LL, I'LL EMPHASIZE THESE ARE, UH, COMMON REALITIES ACROSS STATES, NOT UNIQUE TO OKLAHOMA, UH, BUT CERTAINLY THERE'S, THERE'S SOME COMMON CONCERN DEVELOPING ACROSS ALL THE AREAS.
UM, SO LET ME JUST, UH, BRIEFLY TOUCH ON A COUPLE NATIONAL TOPICS AND THEN WE'LL KIND OF, UH, COME LOCAL.
UH, THE NATIONAL ECONOMY BASICALLY STALLED OUT IN THE SECOND HALF OF LAST YEAR.
SO JOB CREATION AVERAGED IN THE FOURTH QUARTER OF LAST YEAR, ABOUT 11,000 JOBS PER MONTH.
UM, AFTER SOME REVISIONS, I THINK THAT NUMBER ACTUALLY CAME DOWN JUST A LITTLE BIT.
AND SO THE US ECONOMY IS REALLY NOT GENERATING ENOUGH JOBS AT THE MOMENT TO KEEP THE UNEMPLOYMENT RATE FROM MOVING HIGHER.
WE USED TO THINK THAT THE US ECONOMY NEEDED TO GENERATE ABOUT 150 TO 200,000 NEW JOBS PER MONTH IN ORDER TO HOLD THE UNEMPLOYMENT RATE STEADY.
BUT WITH LOWER POPULATION GROWTH AND LOWER IMMIGR, UH, IMMIGRATION AND IMMIGRATION, WE REALLY NEED SOMEWHERE CLOSER TO 50,000 NEW JOBS PER MONTH JUST TO KEEP THE UNEMPLOYMENT RATE STEADY AT ITS CURRENT LEVEL.
AND WE'RE GETTING JUST UNDER THAT RIGHT NOW AS WE END THE, UH, IN THE FOURTH QUARTER MOVE INTO THE, THE FIRST QUARTER OF 2026.
AND SO WE DO SEE CONSEQUENTLY THE UNEMPLOYMENT RATE MOVING HIGHER.
YOU SEE IT AT 4.6, I THINK IT'S 4.5% RIGHT NOW AT THE US LEVEL.
THE MOST RECENT MEASURE THAT JUST CAME OUT LAST FRIDAY.
SO THE UNEMPLOYMENT RATE IS MOVING HIGHER NATIONALLY, AND IT IS MOVING HIGHER ACROSS THE STATE OF OKLAHOMA.
AND SO IF YOU LOOKED AT THE END OF 2025 COMPARED TO THE END OF 2024, UH, OKLAHOMA CITY, TULSA, UM, UH, UH, ENID LAWTON, THE, THE METRO MICRO AREAS OF THE UNITED, UH, OF OKLAHOMA ARE ALL ANYWHERE FROM EIGHT TENTHS TO ONE PERCENTAGE POINT HIGHER IN THEIR UNEMPLOYMENT RATE THAN THEY WERE A YEAR AGO.
AND SO YOU ARE SEEING A LITTLE BIT OF, UH, SORT OF CHALLENGES CREEP INTO THE LOCAL LABOR MARKET.
UM, UH, AS WE SORT OF TINKER ON THE, ON THE BORDER BETWEEN TWO ECONOMIC REALITIES THAT I'LL DISCUSS IN JUST A MINUTE.
THE OTHER INTERESTING CONVERSATION HAPPENING AT THE NATIONAL LEVEL IS THE CONCENTRATION OF SPENDING AMONG HIGH INCOME HOUSEHOLDS.
AND SO IF YOU SORT OF COMPARE BACK IN THIS CHART TO 1990S, IT'S SORT OF THE CALLBACK FOR THE, THE PERIOD OF TIME THAT WE'RE IN.
PEOPLE LIKE TO CALL BACK TO THE.COM BUBBLE.
YOU HAD THIS RUN UP IN THE STOCK MARKET, YOU HAD THIS CONCENTRATION OF WEALTH.
IF YOU LOOK ACROSS RIGHT NOW, THE TOP 20% OF EARNERS IN THE UNITED STATES, UH, ACCOUNT FOR 60% OF US INCOME, 70% OF HOUSEHOLD NET WORTH AND 56, UH, PLUS PERCENT OF CONSUMPTION.
SO CONSUMPTION'S REALLY CONCENTRATED INSIDE THOSE HIGH NET WORTH HOUSEHOLDS, AND THEY'RE REALLY SPENDING OUT OF THEIR ASSETS.
AND SO IT'S REALLY, UH, IT'S REALLY, UH, A STOCK MARKET THAT'S AT RECORD LEVELS.
IT'S AN S AND P 500 THAT'S GIVEN YOU 20% RETURNS TWO YEARS IN A ROW, AND THEN FOLLOWED UP WITH 15% RETURNS.
IT'S HIGH NET WORTH INDIVIDUALS THAT ARE SPENDING REALLY OUT OF THEIR ASSETS.
IF YOU LOOK AT THE, THE SORT OF THE BOTTOM 80% OF HOUSEHOLDS, UH, SPENDING IS SORT OF TRACKING RIGHT AT INFLATION.
AND SO THE BOTTOM 80% OF EARNERS IN HOUSEHOLDS, THERE'S THEIR SPENDING IS BARELY KEEPING UP WITH INFLATION.
ALL OF THE REAL CONSUMPTION GROWTH IS REALLY HAPPENING, UH, AT THE HIGH END.
UH, BUT A US HOUSEHOLD NET WORTH IS AT AN ALL TIME, IS AT AN ALL TIME HIGH.
WHEN YOU LOOK NATIONALLY, THE, WHAT, WHAT ARE THE MAJOR SHOPS SAYING? THE CONFERENCE BOARD, GOLDMAN SACHS, NA, NATIONAL ASSOCIATION FOR BUSINESS ECONOMICS, EVERYBODY'S SAYING 2026 IS KIND OF A MEDIOCRE YEAR.
THEY'RE SAYING 2026 IS 1.5%, UH, GROWTH, FOUR POINT A HALF PERCENT UNEMPLOYMENT RATES 3%, UH, INFLATION RATES, UH, 3%.
UH, FEDERAL FUNDS RATE TWO POINT A HALF PERCENT INFLATION.
EVERYBODY'S SORT OF SAYING 2026 IS SORT OF A MIDDLE OF THE ROAD TYPE OF YEAR.
BUT I, I WOULD ENCOURAGE US NOT TO BE, UM, UH, NOT TO BE LULLED INTO THINKING THIS MEANS IT'S AN UNEVENTFUL YEAR.
I THINK THIS IS KIND OF WHAT YOU SAY AS A FORECASTER WHEN YOU DON'T KNOW WHICH WAY THE WINDS ARE BLOWING.
AND SO YOU JUST SORT OF SAY, THE NEXT THING'S GONNA LOOK LIKE THE LAST THING.
'CAUSE THAT'S THE ABSENT IN THE OTHER INFORMATION.
SO THIS DOESN'T FEEL LIKE A CONVICTION IN A SORT OF A BORING MIDDLE OF THE ROAD YEAR SO MUCH AS IT FEELS LIKE ABSENT SOME STRONG CONVICTION OTHERWISE, WE'LL, WE'LL SAY NEXT YEAR.
SO WE'LL DEFINITELY BE ON THE, ON THE LOOK AS WE GO THROUGH 26.
IF YOU PIVOT, UH, INTO OKLAHOMA, IF YOU TAKE THAT AS A NATIONAL BACKDROP, THE STORY IN OKLAHOMA REALLY GOES ALL THE WAY BACK TO 2024.
IF YOU LOOK AT THE CHART ON THE LEFT AND YOU JUST LOOK AT THE RED BARS, THE RED BARS REPRESENT WHAT WE THOUGHT WE KNEW WHEN WE STOOD HERE A YEAR AGO, RIGHT WHEN WE WERE PUTTING THE FORECAST TOGETHER A YEAR AGO, THE DATA TOLD US THAT THE OKLAHOMA ECONOMY WAS GROWING AT 1.6, 1.7% EMPLOYMENT, JOB GAINS QUARTER AFTER QUARTER.
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WAS A LITTLE ABOVE THAT PACE.WHAT WE FOUND OUT IS IN BLUE, IN BLUE IS THE REVISED DATA.
SO WHAT WE FOUND OUT LATER IN 2025, IN SEPTEMBER OF 2025, WE WERE ABLE TO GET REVISED DATA FOR 24.
AND IT TURNS OUT THE ECONOMY WAS REALLY BARELY GROWING AT 1% PER YEAR ACROSS OKLAHOMA.
AND THOSE DOWNWARD REVISIONS IN OKLAHOMA, IF YOU LOOK AT THE PANEL ON THE RIGHT, OKLAHOMA HAD THE SECOND LARGEST DOWNWARD REVISIONS TO ANY STATE EXCEPT FOR COLORADO.
AND SO A YEAR AGO, WE WERE SORT OF MOVING INTO 2025 UNDER A PREMISE THAT WE WERE EMERGING FROM A 2024 THAT HAD PRETTY STRONG EMPLOYMENT GAINS, AND WE HAD SOME MOMENTUM TO CARRY US INTO 2025.
AND ONLY REALIZED LATER THAT THERE WASN'T A LOT OF 2024 MOMENTUM AFTER ALL THAT WE WERE SORT OF MISLED BY THE ORIGINAL DATA SERIES AND POST REVISIONS, UH, OKLAHOMA AND OKLAHOMA CITY REALLY HAD THE LARGEST REVISIONS, UM, UH, UH, OKLAHOMA CITY, THE LARGEST REVISIONS IN THE STATE, OKLAHOMA, THE SECOND LARGEST REVISION OF ALL STATES, IF I DON'T THINK I HAVE THIS SLIDE, BUT FOR WHAT IT'S WORTH, THERE WILL BE SIGNIFICANT REVISIONS AGAIN TO THE 2025 DATA.
SO IN SEPTEMBER OF 2026, WE'LL FIND OUT THAT OKLAHOMA JOB GROWTH IN 2025 WAS NOT QUITE AS FIRST REPORTED, BUT THE LARGER REVISIONS WILL BE IN TULSA AND NOT IN OKLAHOMA CITY.
SO YOU CAN ALREADY SORT OF SEE IN THE DATA, UH, WHERE THE REVISIONS, UH, WILL BE.
SO WHERE ARE WE RIGHT NOW? SO IF THE STORY OF 2025 WAS WE DIDN'T QUITE HAVE THE MOMENTUM WE THOUGHT WE HAD, WHAT'S THE STORY OF 2026? WELL, AS WE GET TO THE END OF 2025, UH, UNEMPLOYMENT INSURANCE CLAIMS AND CONTINUING CLAIMS ARE RIGHT AT LEVELS THAT WE TYPICALLY CHARACTERIZES AS DEMARCATING THE NORMAL CHURN IN A LABOR MARKET FROM A, UH, DISTRESSED LABOR MARKET.
WE'RE SORT OF STUCK RIGHT THERE ON THAT BORDERLINE.
SO WE WOULD TYPICALLY THINK ABOUT BACK OF THE ENVELOPE IF WE HAVE 1500 INITIAL CLAIMS A WEEK, OR IF WE HAVE 12,000 CONTINUING CLAIMS. THOSE ARE SORTS OF, THAT'S THE BACK OF THE ENVELOPE LINE IN THE SAND, THAT THAT DEMARCATES NORMAL FROM DISTRESSED.
AND WE'RE RIGHT ON THE EDGES OF THOSE TWO BARRIERS.
RIGHT NOW, WE'RE NOT INTO THE DISTRESSED ZONE, BUT WE'RE RIGHT ON THE UPPER BOUND OF WHAT WE MIGHT THINK ABOUT AS THE NORMAL CHURN IN THE LABOR MARKET.
OUR 12 MONTH NET CHANGE IN EMPLOYMENT ACROSS THE STATE SHOWS THAT WE'RE ONLY UP ABOUT 15,000 JOBS, BUT AGAIN, THOSE NUMBERS WILL BE REVISED DOWN.
WE'RE PROBABLY UP CLOSER TO FIVE TO 7,000 JOBS END OF 2025 COMPARED TO THE END OF 2024.
AND FINALLY, IF YOU LOOK AT AIRPLANE TRAFFIC, AIRPLANE TRAFFIC AT WILL ROGERS, UH, FLAT IN 2025.
AND SO YOU SORT OF ASK YOURSELF, WELL, WHERE ARE WE RIGHT NOW? WELL, RIGHT NOW WE'RE SORT OF MOVING IN A LATERAL DIRECTION.
IF YOU LOOK AT OKLAHOMA CITY, AND I THINK I HAVE A CHART IN HERE, THE SAME KIND OF, UH, BAR, UH, CODE CHART FOR EDMOND.
BUT THIS CHART REALLY JUST ASKS A SIMPLE QUESTION.
IT JUST ASKS OKLAHOMA CITY SALES TAX COLLECTIONS, IS YOUR SALES TAX CHECK LARGER THAN THE CHECK YOU COLLECTED 24 MONTHS AGO? IF WE JUST GO BACK TWO YEARS IN TIME, WE WOULD EXPECT ALL ELSE EQUAL THAT YOUR SALES TAX CHECK IS LARGER THAN IT WAS TWO YEARS AGO BECAUSE THERE'S BEEN SOME PRICE INFLATION IN THE SALES TAX BASE.
THERE'S GREATER POPULATION, THERE'S BEEN INCOME GAINS.
SO ALL ELSE EQUAL, IF I LOOKED BACK IN TIME TWO YEARS, I EXPECT TO SEE A LARGER SALES TAX CHECK.
AND SO EVERYWHERE YOU SEE A ONE THAT'S A YES ANSWER.
THAT'S A MONTH IN WHICH THE QUESTION WAS ASKED, IF I LOOK BACK 24 MONTHS AGO, IS THIS CHECK LARGER THAN 24 MONTHS AGO? EVERYWHERE YOU SEE A ZERO, THAT'S A NO ANSWER.
IF I LOOK BACK, WAS THE CHECK LARGER.
AND WHAT YOU SEE IS THESE PERIODS OF NOS REALLY CLASSIFY A SALES TAX RECESSION.
IF I HAVE A STRING OF NOS, LIKE WE HAD FROM 20, LATE 20 15, 20 16, THAT WAS THE LAST MAJOR OIL AND GAS BUST.
AND OKLAHOMA CITY HAS A STRING WHERE THEIR SALES TAXES WERE LOWER THAN THEY WERE 24 MONTHS AGO.
THAT'S A CLEAR, CLEAR CUT FISCAL RECESSION.
YOU COME OUT OF RECOVERY AND YOU HAVE THIS RUN THROUGH THE PANDEMIC FROM 20, LATE 20 17, 20 18 THROUGH FEBRUARY, 2020, WHERE YOU HAVE A STRING OF YESES AND EVERY DOT THAT LINES UP THERE IS A YES.
THAT'S AN ECONOMIC EXPANSION JUST MONTH AFTER MONTH AFTER MONTH, OUR CHECK IS LARGER THAN IT WAS TWO YEARS AGO.
THIS CATCHES SOME OF THE EBB AND FLOW FROM YEAR TO YEAR AND REALLY MAKES A 24 MONTH LOOK BACK.
THEN YOU HAVE THE PANDEMIC WHERE YOU HAVE SOME, IT'S SMALLER, IT'S LARGER, IT'S SMALLER AND LARGER.
THIS IS THE ECONOMY'S CLOSED, IT'S OPENED AGAIN, IT'S CLOSED AGAIN, IT'S OPENED AGAIN.
AND SO YOU HAVE THESE PERIODS WHERE, RIGHT, YOU HAVE THESE OPEN AND CLOSED AND YOU HAVE THIS EXPANSION ALL THE WAY THROUGH, UH, UH, SORT OF LATE 23, EARLY 24 FOR ABOUT THE LAST TWO YEARS.
IF YOU LOOK AT THE VERY TAIL END OF THAT CHART, FOR ABOUT THE LAST TWO YEARS, THE CITY OF OKLAHOMA CITY HAS BEEN STUCK IN NO MAN'S LAND, NOT QUITE IN AN EXPANSION AND NOT QUITE IN A RECESSION.
THEY'RE STUCK IN THIS PERIOD WHERE FOR ABOUT TWO YEARS,
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IT'S ONE CHECK IS LARGER THAN THE CHECK 24 MONTHS AGO.THE NEXT ONE'S SMALLER, THE NEXT ONE'S LARGER, THE NEXT ONE'S LARGER, THE NEXT ONE'S SMALLER, NEXT ONE'S LARGER THAN SMALLER THAN SMALLER THAN LARGER.
AND THEY'RE JUST SORT OF STUCK BETWEEN TWO REALITIES.
AND CANDIDLY, OKLAHOMA CITY IS WRESTLING WITH HOW DO WE, RIGHT? ARE WE EVER GONNA BREAK? IS THIS OUR NEW REALITY? AND I WILL ARGUE THAT FOR BOTH OKLAHOMA CITY AND EDMOND, THE ANSWER IS NO.
THAT IS NOT YOUR NEW LONG ONE REALITY, BUT IT CAN FEEL THAT WAY IF YOU'VE BEEN IN THAT POSTURE FOR GOING ON TWO YEARS.
NOW, WHEN YOU LOOK AT SORT OF THE OUTLOOK, THEN THE FORECAST, THE FORECAST IS FOR VERY MODEST JOB GROWTH IN 2026.
UM, WE'RE PROJECTING JOB GROWTH AT JUST OVER HALF A PERCENTAGE POINT ACROSS THE STATE.
UM, AND WE THINK THOSE GAINS COME FROM MOSTLY HOLDING SOME CONSTRUCTION, A LITTLE FEWER ADDITIONAL CONSTRUCTION JOBS AND SOME HEALTHCARE JOBS.
I DID ACKNOWLEDGE EARLIER THAT FORECASTERS IN THE ABSENCE OF A STRONG WIND, PUSHING THEM ONE DIRECTION OR THE OTHER, MIGHT DEFAULT INTO SAYING NEXT YEAR.
LOOKS LIKE LAST YEAR, I CAN'T BE SURE THAT MY OWN FORECAST ISN'T SUBJECT TO THE SAME CRITICISM, RIGHT? THAT THEY'RE ABSENT KNOWING WHAT SORT OF, WHETHER IN AN EXPANSION OR A RECESSION.
IT'S VERY, VERY DIFFICULT TO SORT OF HAVE A STRONG CONVICTION RAT NEXT YEAR OUTLOOK.
BUT WE THINK IT'S GONNA BE VERY DIFFICULT TO GENERATE SIGNIFICANT JOB GROWTH TO START 26.
THE HOPE IS THAT WE CAN GET SOME JOB GAINS IN THE BACK END OF 26 AS WE SORT OF EMERGE OUT OF THIS PROLONGED STALLED PERIOD AND INTO A FULL BLOWN, UH, ECONOMIC EXPANSION.
SO THAT'S THE SHORT RUN CHALLENGE.
SO LET ME SPEND MY LAST FIVE MINUTES AND TALK ABOUT SOME OF THE LONG RUN OPPORTUNITIES.
THERE ARE ABSOLUTELY SOME SHORT RUN CHALLENGES IN A LABOR MARKET THAT'S NOT GENERATING A LOT OF JOBS, UM, AGAINST SOME CHALLENGING NATIONAL BACKDROPS THAT LOOK TO BE STABILIZING AND IMPROVING A LITTLE BIT, IF WE'RE BEING CANDID.
SO THE, THERE IS SOME OPTIMISM THAT THE NATIONAL ECONOMY MIGHT EMERGE IN 2026, A LITTLE STRONGER.
GDP NUMBERS LOOK PRETTY GOOD TO START THE YEAR.
UM, THE ONE BIG BEAUTIFUL BILL ACT SHOULD BE MILDLY STIMULATIVE AS YOU MOVE INTO 2026.
AND SO THERE IS SOME OPTIMISM BUILDING AROUND THE NATIONAL BACKDROP FOR 26 THAT WOULD BE HELPFUL FOR US BECAUSE WE DON'T HAVE A LOT OF OUR OWN MOMENTUM.
SO LONG RUN CHALLENGES, BUT SHORT RUN CHALLENGES.
HERE'S THE LONG RUN OPTIMISM, THOUGH OKLAHOMA IS STILL MOVING THROUGH ITS URBANIZATION PHASE.
WE WERE SLOW TO THE URBANIZATION CYCLE.
UM, WE ARE THE 10TH FASTEST URBANIZING STATE, RIGHT? IF YOU LOOK BACK TO 1983, WE HAD 59% OF OUR POPULATION LIVING IN URBAN AREAS, THE TULSA MSA, THE OKLAHOMA CITY, MSA ENID AND GARFIELD COUNTY AND LOT IN COMANCHE COUNTY.
WE HAD 60, WE HAD 59% OF OUR POPULATION IN THOSE REALLY 14, 16 COUNTIES.
THAT DIFFERENCE IS THE 7.7 PERCENTAGE POINTS GAINED, YOU SEE IN THE CHART ON THE TABLE ON THE RIGHT.
SO ON THE RIGHT YOU SEE THIS INCREASE FROM 59 TO 66.7% OF OUR POPULATION.
THAT'S A NET CHANGE OF 7.7 PERCENTAGE POINTS.
UH, THAT PUTS OKLAHOMA AS THE 10TH FASTEST URBANIZING STATE BEHIND THE STATES.
YOU SEE, UH, ON TOP OF THEM ON THAT LIST.
BUT WE'RE STILL ONLY THE 33RD MOST URBANIZED STATE.
SO WE'RE THE 10TH FASTEST URBANIZING STATE OVER THE LAST 10 YEARS, BUT WE'RE STILL ONLY THE 33RD REALLY THE 34TH MOST URBANIZED STATE.
IN OTHER WORDS, THE URBANIZATION, UH, RUN STILL HAS LEGS TO GO.
WE ARE FAR FROM BEING AT OUR EQUILIBRIUM LEVEL OF URBANIZATION, WHICH SUGGESTS THAT THE OKLAHOMA CITY, MSA AND EDMOND BY EXTENSION STILL HAS LONG RUN OPPORTUNITIES IN FRONT IN WHICH PEOPLE IN ECONOMIC ACTIVITY WILL BE MOVING INTO CENTRAL OKLAHOMA.
THIS PATTERN WILL CONTINUE TO PERSIST.
IN FACT, IF YOU LOOK ACROSS THE STATE, WHAT YOU'RE GONNA FIND IS THAT OKLAHOMA CITY IS THE ONLY MSA THAT'S REALLY GROWING IN ITS SHARE OF PEOPLE AND ECONOMIC ACTIVITY.
TULSA IS FLAT TULSA OVER THE LAST 20 YEARS, ACCOUNTED FOR 25% OF THE STATE'S POPULATION IN 2007.
AT THE END OF THE FORECAST PERIOD, THEY'LL BE AT 25.8%, EFFECTIVELY FLAT AT THE BEGINNING OF THE FORECAST PERIOD.
THEY ACCOUNTED FOR 29% OF STATE GDP 2007.
AT THE END OF THE FORECAST PERIOD OF 2027, WE HAVE THEM AT 26% EFFECTIVELY FLAT.
OKLAHOMA CITY'S THE ONLY MSA THAT'S GROWING IN ITS SHARE OF THE STATE'S ECONOMY.
AND THAT IS A LONG RUN TREND THAT WILL PERSIST.
AND SO THERE ARE OPPORTUNITIES STILL FOR, UH, FOR THE MSA AND FOR, UH, MSA CITIES LIKE EDMOND TO FIGURE OUT HOW DO WE LEVERAGE SOME OF THIS NATURAL URBANIZATION TO BRING PEOPLE, JOBS, ECONOMIC ACTIVITY, AND A SALES TAX BASE, UH, INTO THE CITY.
AS, AS THERE'S SOME OF THESE NATURAL FLOWS INTO CENTRAL OKLAHOMA.
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FOR AT LEAST THE NEXT 10 YEARS.IT WILL CONTINUE TO BE THE CASE THAT OKLAHOMA CITY WILL BE THE ONLY MSA, IT WILL BE THE ONLY AREA OF THE STATE THAT IS INCREASING ITS SHARE OF ECONOMIC ACTIVITY.
THERE IS STILL LAKES TO RUN ON THIS URBANIZATION PATH.
SO THREE COMMENTS ABOUT EDMOND.
AND AGAIN, I'M JUST SETTING THE STAGE TODAY.
I WILL, UH, I WILL DO, UH, SOME, SOME FORECASTING FOR THE CITY OF EDMOND.
I'LL SUBMIT IT AS JUST AN ADDITIONAL PIECE OF INFORMATION TO KATHY AND HER TEAM.
UM, BUT THREE SPECIFIC THINGS TO EDMOND.
AND SO IF YOU LOOK AT THE POPULATION, THE, THE DEMOGRAPHICS CHANGE BETWEEN TWO, THIS HAS REALLY CHANGED FROM 10 TO 23.
SO ALL THE WAY THROUGH 2024, UH, ALL OF THOSE AGE PROFILES THAT ARE POINTED DOWN, THE, THOSE ARE AGE, UH, AGE GROUPINGS WHERE THE SHARE OF THE POPULATION IN EDMOND IN THAT GROUP IS LOWER NOW THAN IT WAS IN 2010.
AND SO IF YOU LOOK FOR EXAMPLE, IN THE, UH, 10 TO 14, THE 15 TO 19, THERE IS LESS THAT, THAT AGE DEMOGRAPHIC IS LESS OF THE EDMOND POPULATION NOW THAN IT WAS IN 2010.
THE BIGGEST DROPDOWN THERE IS THE 20 TO 24, AND THAT'S ALMOST ENTIRELY ATTRIBUTABLE TO U-C-O-U-C-O PEAKED IN ITS ENROLLMENT IN THE MID TWO THOUSANDS.
UM, AND REALLY AS WE WENT THROUGH 2000 TENS, IT REALLY SORT OF, WE'VE LOST ABOUT 3000 ISH STUDENTS FROM PEAK ENROLLMENT, UM, UNDER OUR CURRENT UNIVERSITY LEADERSHIP AND PRESIDENT LAMB.
THOSE NUMBERS HAVE STABILIZED, UM, AND ARE REBOUNDING SLIGHTLY, BUT THAT BIG DROP YOU SEE IN THE SHARE OF YOUR POPULATION, THAT CATEGORY IS ALMOST ENTIRELY UCO.
UM, AND TO THE EXTENT THAT UCO CAN SOLVE THAT ENROLLMENT PROBLEM, UM, IT IMMEDIATELY TRANSLATES INTO ECONOMIC ACTIVITY AND SALES TAX REVENUE FOR THE CITY AS THOSE STUDENTS COME AND SPEND IN A FAIRLY TIGHT RADIUS TO CAMPUS, UH, AREAS WHERE YOU ARE, UH, ALSO DOWN AGE GROUPS DOWN, UH, IN THAT 45 TO 59 RANGE.
BUT NOTICE THAT YOUR SHARE OF POPULATION IN EVERY CATEGORY 60 AND OLDER IS UP RELATIVE TO 2010.
SO EDMOND IS AN OLDER CITY THAN IT WAS IN 2009.
UM, UH, THIS IS PARTLY A REFLECTION OF THE COMPETITION FOR WHAT HISTORICALLY HAS BEEN EDMOND'S PRIMARY AMENITY, WHICH IS ITS SCHOOL DISTRICT.
SO HISTORICALLY, THE AMENITY THAT ATTRACTED PEOPLE INTO THE COMMUNITY WERE SCHOOL AGED CHILDREN AND THEIR, THEIR SORT OF, UH, MIDDLE PROFESSIONAL AGED, UH, ADULT PARENTS.
THERE'S SOME COMPETITION IN THAT SPACE NOW, AND THE DEMOGRAPHICS OF EDMOND, UH, ARE CHANGING JUST A LITTLE BIT.
IF I WAS GOING TO, UH, EDIT EDITORIALIZE JUST A LITTLE BIT, UH, I WOULD SUGGEST THAT, UH, THAT PROBABLY MEANS FOR EDMOND THAT SIMPLY ATTRACTING ADDITIONAL, UH, UH, ADDITIONAL ROOFTOPS AND HOUSEHOLDS IS NOT, UH, IS NOT THE SALES TAX STRATEGY THAT MAYBE IT ONCE WAS, RIGHT? THIS A LITTLE DIFFERENT PARADIGM.
IT MIGHT REQUIRE A DIFFERENT APPROACH TO ECONOMIC DEVELOPMENT AND SALES TAX, UH, SALES TAX STRENGTH GIVEN THIS NEW PARADIGM IN CHANGING AGE PROFILES.
UH, WHEN YOU LOOK ACROSS, UH, AGAINST SPEAKING IN THE SHORT RUN, UH, CHALLENGES EDMOND YEAR TO DATE, THIS IS JUST SALES TAX, UH, DOWN 1.8%.
THIS IS THROUGH ABOUT THE FIRST HALF OF THE YEAR.
UM, I THINK IF YOU ASK THE FINANCE STAFF AND COMBINED WITH, UH, USE TAX AND THE CORRECT CORRECTIONS THAT WERE RECENTLY MADE, I THINK YOU'RE UP MODESTLY ON A, ON A COMBINED SALES AND USE TAX BASIS.
THIS IS SALES TAX ONLY, BUT IT LETS US SORT OF LOOK AT WHERE EDMOND IS RELATIVE TO OTHER, UH, METRO AND PIER CITIES.
UH, AND YOU CAN SEE EDMOND, UH, AND YUKON DOWN OKLAHOMA.
UH, THAT SHOULD BE OKLAHOMA CITY, NOT OKLAHOMA.
OKLAHOMA CITY IS UP 2.6% AND YOU CAN SORT OF SEE WHERE THE OTHER CITIES ARE THERE.
THIS IS THAT SAME BARCODE CHART, BUT FOR, UH, BUT FOR EDMOND.
AND YOU CAN SEE WHERE OKLAHOMA CITY WAS BOUNCING AROUND IN THEIR YES NO, YES, NO.
EDMOND'S KIND OF BEEN IN A RUN OF NO SUGGESTING THAT EDMOND MIGHT HAVE ALREADY RUN THROUGH ITS FISCAL RECESSION.
PART OF THIS IS GONNA BE, UH, IS GONNA BE A BIAS IN THE DATA, UM, FROM, UH, FROM A CORRECTION IN THE SALES TAX STREAM AT THE TAX COMMISSION.
AND SO PART OF THIS STRING OF NOS IS GONNA REFLECT THAT, UH, THAT THERE'S, UH, THAT THERE'S A BIT OF A BIAS IN THE DATA WITH THAT CORRECTION THAT HAS NOT BEEN ADJUSTED FOR.
BUT IT ALSO SPEAKS THAT PERHAPS EDMUND HAS RUN ITS COURSE AND MIGHT BE AS WE GET INTO THE BACK END OF 2026, IF THINGS CAN SOLIDIFY THAT THERE SHOULD BE OPPORTUNITIES FOR SALES TAX GROWTH ON THE BACK END OF THIS PHASE, BECAUSE YOU'RE MEASURING THAT GROWTH AGAINST A SORT OF A BIASED LOWER DENOMINATOR, RIGHT? SO IF YOU'RE CALCULATING GROWTH NUMERATOR DIVIDED BY YOUR DENOMINATOR, YOUR DENOMINATOR IS ALREADY AT ITS LOW POINT AND HAS BEEN BIASED LOWER, WHICH SUGGESTS AS YOU MOVE OUT OF THIS CYCLE THAT THERE SHOULD BE SOME GROWTH ON THE BACK END OF THIS FISCAL YEAR AS YOU ROUND OUT FISCAL YEAR 26
[00:25:01]
AND MOVE INTO FISCAL YEAR 27.IF YOU LOOK LONGER RUN, AND THIS IS MY LAST SLIDE, I THINK IF YOU LOOK LONGER RUN, YOU CAN SEE WHERE EDMOND, OVER THE LAST FIVE YEARS, IF YOU JUST TOOK A FIVE YEAR KIND OF A POST PANDEMIC FIVE YEAR AVERAGE, UM, EDMOND IS AVERAGING 3.8% GROWTH PER YEAR.
IF YOU JUST STARTED IN, I THINK IN, IN, UH, IN 20 OR FISCAL OR 21 MAYBE, AND THEN, UH, COMPOUNDED IT OVER TIME, WHERE YOU'RE AT NOW, THAT'D BE A GROWTH RATE OF 3.8% PER YEAR.
AND YOU CAN AGAIN, BENCHMARK THAT TO OKLAHOMA CITY.
THAT'S AT 5.1% IS THEIR FIVE YEAR AVERAGE.
YOU CAN SEE ON THE HIGH END THERE YOU HAVE BROKEN ARROW AND SHAWNEE BROKEN ARROW'S, UH, A CITY THAT'S SORT OF EXPERIENCING ITS OWN, UM, UH, SORT OF PARADIGM SHIFT.
UH, I JUST SUGGESTED THAT EDMOND MIGHT BE IN, IN THE MIDDLE OF A PARADIGM SHIFT.
BROKEN ARROW HAS KIND OF EXPERIENCED ITS OWN PARADIGM SHIFT, EMBRACED IT, UH, HERE RECENTLY.
UM, SHAWNEE HAS BEEN STRONG, UM, ON THE SOUTH AND WEST SIDE OF THE METRO AREAS HAS BEEN PRETTY STRONG IN WARREN MUSTANG.
UH, THE WEAKNESS IS A LITTLE BIT ON THE NORTH SIDE AND, UH, AND THE, THE, UH, EAST SIDE, IF YOU THINK ABOUT MIDWEST CITY ON THE EAST SIDE, EL RENO IS FAR ENOUGH WEST.
IT REALLY HAS SOME OIL AND GAS EXPOSURE, UH, IN ITS SALES TAX DATA SERIES.
AND SO YOU CAN SORT OF LOOK ACROSS THE STATE AND THERE'S NOT A, A TREMENDOUS AMOUNT OF VARIATION.
UM, BUT THERE IS SOME EVIDENCE THAT THAT EDMOND MAY BE UNDERPERFORMING SOME OF ITS PEERS IN ITS LONG RUN AVERAGE.
AND THAT, AGAIN, THAT MAY JUST BE A REFLECTION OF, UM, OF ACKNOWLEDGING A PARADIGM SHIFT IN THINKING ABOUT, UH, NEW STRATEGIES, ECONOMIC DEVELOPMENT AND SALES TAX YOU SORT OF PROTECT PROACTIVELY, UH, MANEUVERING TO ATTRACT, UH, THAT SALES TAX BASE AND PROTECT THAT SALES TAX BASE.
SO I MIGHT HAVE MOVED TOO FAR.
I DUNNO KNOW WHAT THE NEXT SLIDE IS, BUT I'M GONNA, I'M GONNA CONCLUDE THERE AND, AND JUST SORT OF LEAVE, UM, THAT BIG PICTURE THOUGHT WITH YOU AS YOU BEGIN THE PROCESS OF GOING THROUGH, UH, UH, PREPARING A BUDGET FOR FISCAL YEAR 27.
I'M HAPPY TO VISIT FOR A MINUTE AND TAKE A COUPLE OF QUESTIONS.
AND OF COURSE, I'M ALWAYS HAPPY TO, TO COME BACK AT THE INVITATION TO THE MAYOR, CITY MANAGER.
I'M ALWAYS HAPPY TO COME BACK AND, AND, UH, AND, AND VISIT QUESTIONS.
YOUR, YOUR LAST SLIDE, THE URBANIZATION CREATES OPPORTUNITIES, BUT MOND WILL NEED TO BE PROACTIVE IN ECONOMIC DEVELOPMENT.
I, I DON'T, SO I, I HESITATE TO, TO, TO EDITORIALIZE OR, OR OFFER OPINIONS TOO MUCH ON ECOMMERCE.
IT'S NOT REALLY MY AREA OF EXPERTISE, AND I DON'T WANT TO CONFLICT THE SORT OF MY AREA OF EXPERTISE WITH, WITH, WITH TOO MUCH, UH, OPINION.
UM, THAT SAID, WHAT WE SEE AMONG CITIES IS AS CITIES EVOLVE, IF YOU LOOK AT A, A COMMUNITY LIKE A DALLAS, RIGHT? AND SO YOU SEE THESE SUBURBAN CITIES THAT REALLY STARTED OUT AS THESE SUBURBAN HOUSEHOLDS, RIGHT? UH, KIND OF EDUCATION AMENITIES.
AND NOW THEY'VE GROWN INTO BEING THEIR OWN PRIMARY CITY, AND THEY SORT OF HAVE A MORE COMPLEX SET OF AMENITIES.
THEY HAVE SMALL SCALE URBAN AMENITIES, THEY HAVE ATTRACTIONS FOR, UH, FOR, UH, UH, UH, YOUNGER PROFESSIONALS FOR CORPORATE HEADQUARTERS FOR, SO THEY SORT OF BLOSSOMED INTO BECOMING THEIR STANDALONE CITY WITH KIND OF THEIR STANDALONE ECONOMIC IDENTITY RATHER THAN IDENTITY MEAN AS A SUBURBAN IDENTITY THAT'S FEEDING INTO THE, UH, THE CENTRAL URBAN DISTRICT.
BROKEN ARROW IS KIND OF GOING THROUGH THAT.
SO BROKEN ARROW'S BEEN KIND OF INTENTIONAL ABOUT TRYING TO CREATE ITS OWN, UH, ITS OWN CITY, ITS OWN KIND OF DESTINATION, UH, RETAIL ITS OWN, UH, IDENTITY.
UM, AND, AND MOVING OUT OF WHAT BROKEN ARROW HAD HISTORICALLY BEEN, WHICH WAS, UH, EDUCATION ENTITY SUBURB TO THE CITY OF TULSA.
NOW, IT'S A LITTLE EASIER IN TULSA BECAUSE OF THE DENSITY THAT THAT EXISTS IN TULSA, BUT I THINK AS YOU THINK ABOUT, UH, BEING PROACTIVE, I THINK IT'S ABOUT, YOU KNOW, MAYBE, UH, INVOLVES LIKE, YOU KNOW, WHAT IS THAT IDENTITY GOING TO BE? UM, IT CERTAINLY INVOLVES BEING PROACTIVE ABOUT SORT OF PROTECTING YOUR SALES TAX BORDERS.
I THINK THAT'S ALWAYS A CHALLENGE.
MOORE HAS BEEN VERY SUCCESSFUL AT MOVING A DESTINATION AND LARGE RETAIL SORT OF RIGHT TO THE EDGES OF THEIR CITY, WHERE THEY CAN AT, THEY CAN IMPORT SALES TAX REVENUE FROM SOUTH OKLAHOMA CITY OR ON THE SOUTH SIDE FROM NORMAN.
SO IT IS SORT OF VERY INTENTIONAL ABOUT KIND OF DEFENDING THE BORDERS OF THEIR, UH, OF THEIR SALES TAX ZONE.
UM, AND THEN I, I, I ALSO THINK, UH, THEM BEING PROACTIVE ABOUT REALLY THINKING ABOUT TRUE DESTINATION, UH, TRUE DESTINATION RETAIL, UM, THINGS LIKE, UH, ON A MUCH BIGGER SCALE, THINGS LIKE THE SHIELDS DEPARTMENT, THE SHIELDS SUPPORTING GOOD STORE FOR OKLAHOMA CITY, THAT WILL BE, THAT WILL MOVE THE NEEDLE IN THEIR SALES TAX, IN THEIR SALES TAX COLLECTIONS.
LIKE WHEN, WHEN THAT, WHEN THAT HITS, YOU'LL
[00:30:01]
SEE THAT KIND OF LEVEL JUMP AND THEN CARRY THEM TO SORT OF DIFFERENT LEVEL.SO ON A SMALLER SCALE, THINKING THROUGH WHAT WOULD THAT, WHAT WOULD THAT SORT OF, THAT DESTINATION EXPERIENTIAL RETAIL EXPERIENCE LOOK LIKE INSIDE A CITY THAT HAS ITS OWN, UH, SORT OF ITS OWN KIND OF FULL-FLEDGED, UH, IDENTITY? AND AGAIN, I DON'T, I, I DON'T WANNA SUGGEST AN EXPERTISE I DON'T HAVE, BUT THOSE WOULD BE SOME OF MY HIGH LEVEL THOUGHTS.
DO YOU HAVE ANY THOUGHTS ON THE IMPACT WITH THE DEVON ANNOUNCEMENT LAST WEEK AND NOW EXPAND THE ENERGY'S ANNOUNCEMENT TODAY? YEAH, UM, I DO, I DO HAVE THOUGHTS.
IS THERE
UM, SO YEAH, LET ME, LET ME CHOOSE WORDS CAREFULLY HERE.
UM, THE, THE DEVON RELOC, THE DEVON RELOCATION IS NOT A SURPRISE.
UM, THAT HAS BEEN, UM, THAT HAS BEEN FORTHCOMING FOR FOUR OR FIVE YEARS.
UM, THOSE OF US THAT SORT OF FOLLOWED IT, YOU COULD SEE IN THE ASSETS THAT THEY WERE SELLING WHERE THEY WERE PUTTING RESOURCES, THEY WERE REALLY POSITIONING THEMSELVES.
SO IT FEELS LIKE THIS IS, HAS BEEN KIND OF SLOW, BUT A LONG TIME COMING.
UM, IT WILL HAVE SOME ACUTE EFFECTS, UH, SHORT TERM IN A DOWNTOWN, UH, REAL ESTATE MARKET.
UM, I SUSPECT THEY WILL KEEP A PRESENCE HERE FOR A TIME, BUT I SUSPECT THAT PRESENCE WILL, WILL DIMINISH A LITTLE BIT OVER TIME.
AND, UH, I THINK THE DAYS IN WHICH, UH, KIND OF OUR BLUE BLOOD OIL AND GAS COMPANIES WERE AT THE FOREFRONT OF EVERY ACTIVITY IN EVERY FESTIVAL AND EVERY SPONSORSHIP.
I THINK THOSE ARE PROBABLY COMING TO A CLOSE.
UM, I THINK THE EXPAND MOVED TO HOUSTON.
UM, I THINK THEY WERE PROBABLY JUST WAITING FOR THE RIGHT TIME TO MAKE THE ANNOUNCEMENT.
AND, UH, DEVON MERGER FELT LIKE THE RIGHT TIME, UM, IN A CITY LIKE EDMOND.
UM, YOU KNOW, I, I WOULD IMAGINE THAT EDMOND IS HOME TO MORE THAN A FEW, UH, SENIOR OFFICIALS, UH, YOU KNOW, EXECUTIVES AT THOSE COMPANIES.
UM, AND SO I SUSPECT YOU WOULD SEE, YOU KNOW, UM, SOME RELOCATION OF THAT EXECUTIVE TEAM.
I SUSPECT OVER TIME YOU'LL SEE, UM, UH, SOME OF THOSE, SOME OF THOSE PROPERTIES BECOME AVAILABLE.
ALL THAT SAID, AND I DON'T WANNA MINIMIZE, UH, I DON'T WANNA MINIMIZE THE MERGER OR THE RELOCATION, UM, IN TERMS OF BROAD ECONOMIC ACTIVITY, THESE ANNOUNCEMENTS DON'T, THEY DON'T SHAKE THE FOUNDATION OF THE OKLAHOMA CITY ECONOMY LIKE THEY WOULD HAVE IN 20 10, 20 11.
UM, AND SO IT WILL BE, IT WILL CREATE SOME, SOME POCKETS OF CHALLENGES.
UM, BUT IT WON'T MOVE THE NEEDLE IN TERMS OF HEADLINE ECONOMIC PERFORMANCE, UH, ONE WAY OR THE OTHER.
IT, IT, IT DOES, IF YOU'LL, I MEAN, ONE THE LAST THOUGHT ON THAT, IT DOES CREATE SORT OF A VOID.
I DON'T KNOW IF YOU THINK ABOUT OTHER LARGE CITIES, WHETHER IT'S H AUSTIN OR DALLAS OR CHARLOTTE OR ST.
LOUIS, I MEAN, OR SALT LAKE CITY OR SEATTLE, ALMOST EVERY MAJOR CITY YOU WOULD THINK OF, YOU WOULD IMMEDIATELY THINK OF A, OF A COUPLE OF INDUSTRIES.
IT WOULD HAVE AN ECONOMIC IDENTITY.
YOU'D SAY, OH, FINANCIAL ACTIVITIES, OH, KANSAS CITY INSURANCE, OH, SALT LAKE TECHNOLOGY.
OH, LIKE EVERY CITY WOULD HAVE AN IDENTITY.
I DON'T KNOW THAT OKLAHOMA CITY HAS AN IDENTITY, AND THAT'S GONNA BE KIND OF INTERESTING, YOU KNOW, IF, IF EXPANDED DEVON BOTH RELOCATE, UM, AEROSPACE IS PROBABLY THE MOST LIKELY CANDIDATE.
I THINK IT WILL CREATE SOME OPPORTUNITIES FOR OKLAHOMA CITY TO REALLY SORT OF CREATE ITS OWN, WHAT IS ITS NEXT ECONOMIC IDENTITY GOING TO BE.
IT'S PROBABLY NOT, UH, OIL AND GAS, IT'S PROBABLY NOT THE IDENTITY GOING FORWARD.
SO WE'RE GONNA SWITCH GEARS HERE A LITTLE BIT AND, UM, THIS AGENDA IS PRETTY GENERAL AND IF YOU GUYS WOULD JUST PLEASE LET ME KNOW YOUR THOUGHTS AND WHAT YOUR THINKING, YOUR EXPECTATIONS WILL, UH, WE WILL GET OUR BUDGET PULLED TOGETHER THIS YEAR.
SO, UM, SO THIS IS THE WORK SCOTT SHOP SCHEDULE.
WE'VE DONE IT MANY DIFFERENT WAYS IN THE LAST FIVE YEARS THAT I'VE BEEN HERE.
IT'S BEEN ANYWHERE FROM, I THINK WHEN ROSS USED TO BE HERE, IT MIGHT HAVE BEEN TWO TO THREE DAYS STRAIGHT OF ALL BUDGET MEETINGS.
AND THEN, UM, WHEN LARRY, UH, STEVENS WAS HERE, HE ACTUALLY GOT INVOLVED A LITTLE BIT IN SOME OF THE EXPLANATION.
[00:35:01]
PRETTY NEW AS A GROUP, SO PLEASE LET ME KNOW YOUR PREFERENCE.UH, WE'VE TALKED ABOUT POSSIBLY HAVING SOME WORKSHOP SHOPS AT FIVE 30 OR AT ANOTHER TIME ON AND OFF MONDAY, OR KEEPING THEM.
TRADITIONALLY WE'VE HAD 'EM KINDA LIKE THIS, YOU KNOW, AROUND THREE O'CLOCK.
UM, WHEN WE HAVE 'EM AT THREE O'CLOCK, WE DO HAVE A COUPLE HOURS TO SPEND.
AND SO DEPENDING ON HOW LONG YOU WANNA LISTEN TO BUDGET THINGS, UM, WHETHER WE DID IT AT FIVE 30 OR WE DID AT THREE O'CLOCK, POSSIBLY, YOU MIGHT WANT TO THINK ABOUT HOW LONG DO YOU EVEN WANT THEM TO BE.
BUT, UM, IF WE'RE GONNA SHOOT AROUND TWO HOURS FOR EACH BUDGET WORKSHOP, WE HAVE THE FOLLOWING DATES AVAILABLE.
SO AGAIN, UM, IN ANOTHER SLIDE, WE'RE GONNA TALK A LITTLE BIT ABOUT WHAT WE CAN DO IN FUTURE MEETINGS AS FAR AS ACTUALLY ADDRESSING ALL OF THESE REQUESTS.
BUT IF, IF YOU WOULD LIKE TO HEAR FROM ALL OF THE VARIOUS DIRECTORS, UM, I'M GONNA PICK ON PARKS BECAUSE HE HAS A LOT OF DEPARTMENTS UNDER HIM, BUT HE'S ONE DIRECTOR OVER ALL OF IT.
SO IF WE WOULD LIKE TO, IF YOU'D LIKE TO HEAR FROM THOSE DIRECTOR LEVELS AND JUST ANY OF THE DEPARTMENTS THAT THEY HAVE UNDER THEM, WE CAN DO IT THAT WAY.
OR WE CAN FOCUS IN ON JUST, YOU KNOW, SPECIFIC, UH, DEPARTMENTS THAT YOU'D LIKE TO HEAR FROM.
TYPICALLY, WE HEAR FROM PUBLIC SAFETY, POLICE AND FIRE, UM, ELECTRIC, SO THE LARGER ONES.
UM, BUT WHATEVER YOU WANNA DO, JUST PLEASE LET ME KNOW.
BUT I THINK IF WE WERE TO HEAR FROM ALL, WE HAVE APPROXIMATELY 23 DIRECTORS, I THINK I'D NEED MINIMUM OF THREE WORKSHOPS, BUT MAYBE FOUR, JUST DEPENDING ON HOW, HOW FAR YOU WANT TO GO INTO IT.
I'D LIKE TO HAVE ONE, IT'S KIND OF HERE AT THE BOTTOM, BUT, UM, I'D LIKE TO HAVE ONE, WHICH IS THIS APRIL 13TH DATE WHERE I COULD HAVE EVERYTHING ROLLED UP AND, AND YOU CAN SEE IT.
SO ALL THE THINGS THAT YOU'VE HEARD FROM ALL THE DIFFERENT DEPARTMENTS AND DIFFERENT REQUESTS, I COULD HAVE IT TOGETHER.
IT WOULD STILL GIVE US TIME FOR YOU GUYS TO SAY, HEY, CAN YOU STILL CHANGE THIS OR THAT? AND THEN STILL HAVE APRIL 20TH WHERE IT COULD BE, IT WOULDN'T STILL, YOU COULD STILL CHANGE IT AFTER THAT, BUT HOPEFULLY IT WOULD BE BASICALLY FINAL BY THAT POINT, THE MAY 4TH, MAY 8TH, MAY 18TH, AND JUNE 8TH DATES, THEY'RE KIND OF DROPPED DEAD DATES.
THOSE ARE WHEN WE HAVE THE MAY 4TH AND THE MAY 8TH ARE, ARE REALLY FOR CITY CLERK'S OFFICE IN ORDER TO GET IT PUBLISHED IN TIME.
AND, UM, THE MAY 18TH, AGAIN, IT WOULD GIVE US, IT WOULD GIVE US A CHANCE TO CHANGE, BUT HOPEFULLY WE WOULDN'T WANT TO AT THAT POINT.
SO, UM, JUNE 8TH, ACTUALLY, THE BUDGET HAS TO BE ADOPTED BY THE END OF JUNE, BUT AGAIN, IF WE CAN GET IT DONE BY JUNE 8TH, THEN IT GIVES US SOME LEEWAY IN CASE THERE IS SOMETHING THAT YOU WANNA CHANGE LAST MINUTE.
SO ANY DISCUSSION ON, ON HOW YOU'D LIKE TO APPROACH THESE WORKSHOPS THIS YEAR? UM, I, YOU KNOW, I THINK A LOT OF US UP HERE AND THE STAFF, YOU KNOW, THE SECOND AND FOURTH MONDAYS ARE TIMES THAT WE BLOCK MONTHS OR YEARS AHEAD OF TIME.
SO, UM, AND THEN, YOU KNOW, THE FIRST AND THIRD TUESDAY IS PLANNING COMMISSION, AND THEN THERE ARE SOME OTHER BOARDS AND COMMISSIONS THAT, YOU KNOW, THEY ARE SCHEDULED BASED OFF OF THOSE TWO PRETTY CONCRETE SCHEDULES.
SO, UM, SO MARCH 16TH, I'M JUST TALKING ABOUT SCHEDULING.
IS THIS, IS IT OPEN FOR DISCUSSION? THE SCHEDULE? IS THAT WHAT YES, THAT'S WHAT I, I DEFINITELY WOULD LIKE TO KNOW.
YEAH, SO MARCH 16TH IS SPRING BREAK, WHICH I THINK WE'VE TALKED ABOUT IN A MEETING, UM, PREVIOUSLY.
UM, I, I'M OKAY WITH IF WE NEED TO GO OUTSIDE OF THE SECOND AND FOURTH MONDAY.
UH, I WAS JUST, I WAS LOOKING BACK AT OUR SCHEDULE OF WHAT WE DID LAST YEAR, AND NOT THAT WE HAVE TO DO IT THE SAME WAY, BUT WE HAD ONE BUDGET MEETING IN FEBRUARY, ONE BUDGET MEETING IN MARCH, TWO IN APRIL, AND THEN WE HAD THE TWO HEARINGS IN MAY.
SO WHEN I LOOK AT THESE PROPOSED DATES, I KIND OF WONDER, YOU KNOW, IS FEBRUARY 23RD AN OPTION TO GO AHEAD AND GET STARTED? AND THEN DOING LIKE FEBRUARY 23RD, MARCH 9TH, MARCH 23RD, UM, AND THEN APRIL 13TH.
THOSE ARE ALL CITY COUNCIL DAYS.
SO OBVIOUSLY I THINK MY PREFERENCE IS TO KIND OF STAY WITHIN THOSE DAYS JUST 'CAUSE THOSE ARE DAYS THAT I'VE PLANNED FOR.
I THINK THE PUBLIC IS USED TO CITY COUNCIL CONVENING ON THOSE DAYS.
[00:40:02]
BUT I'M, THAT'S MY OPINION.UH, LAST YEAR WAS MY FIRST TIME THROUGH, IT FELT LIKE WE DIDN'T QUITE HAVE ENOUGH TIME AT THE END FOR SOME CHANGES, SO I JUST WANNA MAKE SURE WE DON'T GET INTO THAT SITUATION AGAIN.
OF COURSE, WE ALL CAME IN AND CHANGED EVERYTHING I NEEDED AT THE LAST MINUTE, SO
I THINK WE WILL ON THIS TIMELINE, SINCE WE'RE ALL GONNA BE HERE FROM THE START THIS YEAR TOO.
UM, I'M A LITTLE SENSITIVE ON MARCH 16TH TOO, LIKE, I'LL BE HERE, BUT I DON'T WANT TO, YOU KNOW, WHEN IT'S SPRING, WHEN IT'S SCHOOL HOLIDAYS, I THINK IT'S TOUGH TO DO ANYTHING THAT WEEK.
I DON'T HAVE A PROBLEM WITH DOING IT ON THE OFF DAYS IF WE NEED TO ALSO DON'T HAVE A PROBLEM DOING IT AS WORKSHOPS.
I THINK TO ME IT KIND OF DEPENDS ON HOW DEEP DO WE WANT TO GO, HOW MANY DO WE WANT TO COVER? I'M INTERESTED IN YOUR THOUGHTS, AJ ON THAT TOO, LIKE IN YOUR'S, MARK, ON HOW, YOU KNOW, IT'S HARD TO KNOW.
I DON'T KNOW WHAT THE 23 DIRECTORS ARE, BUT LAST YEAR WE HIT, YOU KNOW, I THINK THE BIG ONES, THE MAJORITY OF 'EM, BUT ARE THE ONES WE DIDN'T HIT LAST YEAR THAT WE SHOULD HAVEN'T THOUGHT ABOUT IT.
SO THAT'S MAYBE, MAYBE THAT'LL DETERMINE HOW MUCH TIME WE NEED TOTAL, AND THEN WE CAN SPREAD 'EM ACROSS THE OTHERS.
THE OTHER THING IS LIKE, WE HAVE A BACKLOG OF WORKSHOPS I THINK THAT WE NEED TO GET TO AT SOME POINT.
AND SO TRYING TO FIT THOSE IN THAT CAME OUTTA STRATEGIC PLANNING THAT ARE OTHER POPUPS, WHATEVER, THAT WE NEED TO TRY TO FIT SOMEWHERE, RIGHT? AND SO THERE'S JUST A FINITE AMOUNT OF TIME, DEPENDING ON WHEN WE WANT TO DO ALL THESE THINGS.
THAT'S ALWAYS HARD PROBABLY IN BUDGET SEASON, BUT, UM, THERE'RE JUST, THERE'S A LOT THAT I THINK WE WANT TO GET TO HERE IN THE FIRST HALF OF THE YEAR.
SO, UM, ANYWAY, UM, SO WE TRIED NOT TO RULE OUT ANY DATES UNTIL THE COUNCIL TOOK 'EM OFF AND WE, WE KNEW ABOUT THE, IN PARTICULAR, THE SENSITIVITY TO, UH, TO MARCH 16TH.
WE JUST DIDN'T WANT TO RULE ANYTHING OUT BEFORE THE COUNCIL DID.
IF I COULD ASK, I THINK GIVEN WHERE WE ARE, AND KATHY KIND OF ALLUDED TO IT, WE'RE WE'VE BEEN HAVING MEETINGS WITH DEPARTMENT DIRECTORS AND WORKING OUR WAY THROUGH A BUDGET, BUT IT'S REALLY A FIRST PASS AND I'LL ACCEPT THE BLAME.
IT'S BEEN, I'VE TAKEN UP A LOT OF THE TIME IN THOSE MEETINGS JUST ASKING, UH, UH, SOME GENERALIZED QUESTIONS AND THAT SORT OF THING.
IF WE COULD BEGIN WHAT I WOULD CALL THE BUDGET REVIEW WITH THE COUNCIL, AND I'M COMPLETELY OPEN TO WHATEVER SCHEDULE THE COUNCIL WANTS, BUT IF WE COULD WAIT UNTIL MARCH 9TH TO, TO INITIATE WHAT I WOULD CALL, UM, UH, YOU KNOW, SORT OF FOCUSED OR CONCENTRATED BUDGET REVIEW, THAT'LL GIVE US A A LITTLE TIME.
OF COURSE, WE HAVEN'T REALLY KNOWN WHAT'S GONNA COME FROM THE YOU COLLECTIVELY TODAY.
UM, AND SO WE WANT TO, WE'VE KIND OF HELD OFF ON PROBABLY SOME, UH, REVENUE AND OTHER KINDS OF ASSUMPTIONS UNTIL WE HEAR FROM YOU, UM, TODAY.
UM, I ALSO MIGHT HAVE A SLIGHTLY UNUSUAL TAKE IF YOU'LL BEAR WITH ME.
I MEAN, WE WON'T, WE WILL LOOK AT ENTERPRISE FUNDS, OF COURSE, AND THOSE TEND TO BE BIG DOLLAR FUNDS, AND SO THEY ATTRACT A LOT OF ATTENTION.
WE AREN'T HAVING A GREAT DIFFICULTY IN, UH, THE ENTERPRISE FUNDS.
I MEAN, AND OF COURSE ON A PARALLEL TRACK WHERE OUR STAFF PRESENTED TO THE PUBLIC WORKS COMMITTEE A WEEK OR TWO AGO, UM, A FIRST PASS AT A, AT A WATER RATE STUDY.
AND SO THERE'S SOME CONTINUING DISCUSSION THAT'S GONNA HAPPEN THERE, AND I THINK THAT'S GONNA GET A LOT OF ATTENTION FROM THE COUNCIL, YOU KNOW, KIND OF ON ITS OWN, EVEN IF WE WEREN'T, UH, IN THE MIDST OF A BUDGET PROCESS.
UM, UH, I THINK WHERE WE AS A STAFF PROBABLY NEED THE MOST, UM, UH, GUIDANCE AND DIRECTION AND WHERE THERE'S THE GREATEST NEED, I THINK FOR COUNCIL DIRECTION IS GONNA BE WHEN WE GET INTO THE GENERAL FUND.
AND, YOU KNOW, SPECIFICALLY INTO SOME OF THE DEPARTMENTS, LIKE, UH, KATHY MENTIONED PARKS, AND I'LL KIND OF DOUBLE UP THERE.
I THINK THERE'LL BE, UM, IT'S GONNA TAKE SOME COMBINED EFFORT, I THINK, TO GET TO A POINT WHERE WE ARE COMFORTABLE, WHERE YOU ARE COMFORTABLE.
UH, THE, WHAT I'LL KIND OF FOR THE MOMENT REFER TO AS SOME COMPETING INTEREST THAT WE'VE HEARD COUNCIL MEMBERS SAY LOTS OF THINGS, UM, TALKING ABOUT ACHIEVING A CERTAIN LEVEL OF, OF, UH, FUND BALANCE, UM, DIVING INTO, EVEN IN THE ENTERPRISE FUNDS, DIVING INTO WHERE THERE ARE, UH, YEAR ENDING FUND BALANCES.
WHAT PORTIONS OF THOSE SHOULD BE RESTRICTED OR, OR RESERVED AS OPPOSED TO UNRESTRICTED OR UNRESERVED? IT FEELS LIKE, BASED ON WHAT I HAVE HEARD COUNCIL MEMBERS SAY, THERE'S A NEED TO TALK
[00:45:01]
ABOUT WHAT I WOULD MAYBE ALMOST CALL SOME OF THE, UH, LEVEL SETTING OR SOME OF THE SORT OF RULES OF THE GAME, IF YOU WILL.UM, SO THAT'S A LONG WAY, I, I THINK OF SAYING THAT WE'RE HAPPY TO SET THE SCHEDULE UP HOWEVER YOU WANT TO DO IT.
UH, I'VE HEARD COUNCIL MEMBER SAY YOU'D LIKE TO NOT BE, UM, CONSTRICTED OR HAVE A SHOCK CLOCK WHEN WE GET INTO BUDGET WORKSHOPS ON THE FRONT END.
UM, BUT IF, AND IF WE'RE GONNA LOOK AT IT THOUGH FROM A CATEGORY STANDPOINT AND NOT REALLY DIVE DEEPLY INTO LINE ITEMS IN CERTAIN AREAS, THEN I THINK WE CAN GET THROUGH IT FAIRLY QUICKLY.
I DON'T WANT ANYONE TO FEEL RUSHED, I DON'T WANT ANYONE TO FEEL LIKE, I CERTAINLY DON'T WANT THE PUBLIC, AND I KNOW YOU FEEL THE SAME WAY.
YOU DON'T WANT THE PUBLIC TO THINK THAT WE JUST, UM, YOU KNOW, KIND OF BREEZED THROUGH IT AND IT DIDN'T GET ITS, ITS DUE COURSE OR DUE ATTENTION.
SO I WANT TO, UH, MAKE SURE THE COUNCIL IS SATISFIED THERE.
WE'RE HAPPY TO ACCOMMODATE ANY, ANY KIND OF SCHEDULE YOU LIKE.
AND I'LL SAY ONE MORE THING AND STOP, BUT YOU ARE RIGHT.
WE'RE ALSO TRYING TO FIGURE OUT HOW WE'RE GONNA FIT IN SOME WORKSHOP SLASH DISCUSSION ITEMS, WHICH KIND OF LEADS INTO A CONVERSATION THAT'S ON THE, UH, COUNCIL AGENDA TONIGHT.
SO YEAH, ONE, ONE OF MY QUESTIONS.
WHEN WOULD STAFF EVEN BE READY TO DO IT? RIGHT TO THE QUESTION ABOUT MARCH 23RD? WE ALSO HAVE DATA STILL COMING IN THAT I THINK IS GOING TO FINANCE COMMITTEE IN A WEEK OR TWO ON LAST FISCAL YEAR'S KIND OF OUTPUT.
SO THE AUDIT REPORT AND THE PERFORMER, WHICH ARE KEY INPUTS TO ME AND KIND OF THE BIG PICTURE DECISION MAKING OR GOALS OR BOUNDARIES OR WHATEVER THAT WE WANT TO ESTABLISH UP FRONT.
SO I THINK, TO ME, MARCH 9TH SEEMS LIKE A LOGICAL START.
THE OTHER THING WE COULD DO OR THINK ABOUT IS HAVE, HAVE AN OVERFLOW, YOU KNOW, SO IF WE WERE TO PLAN THEM INTO THE COUNCIL MEETINGS, LIKE 1630 AT 16, WHATEVER, SORRY, NINTH 23RD, APRIL 6TH, THAT'S THREE.
IF WE NEEDED AN OVERFLOW, YOU KNOW, THE 30TH OR THE 13TH OR SOMETHING, LIKE, WE COULD MAYBE BE AGILE ABOUT IT DEPENDING ON HOW THINGS GO, HOW LONG IT TAKES OR WHATEVER.
UM, ANYWAY, CURIOUS OF YOUR THOUGHTS TOO.
I WOULD ALMOST SAY IF YEAH, IF WE CAN GET IT KICKED OFF MARCH 9TH, 'CAUSE WE WANT TO GIVE, OBVIOUSLY WE WANNA GIVE YOU TIME TO GET THROUGH AS MANY OF THESE HEARINGS THAT YOU'RE HAVING AS POSSIBLE.
UM, AND IF WE DID AVOID MARCH 16TH, WHICH SEEMS VERY LOGICAL, LET'S STAY AWAY FROM SPRING BREAK BECAUSE IT JUST, IT CREATES JUST SO MUCH CHAOS.
UM, IF, IF WE RECOGNIZE THE ISSUE HERE AND SAID WE DO MARCH 9TH, WE DO MARCH 23RD, AND IF WE HAVE TO START AT, YOU KNOW, TWO 30 OR TWO OR WHATEVER TO TRY TO GET AS MUCH IN, BECAUSE WE'RE UP AGAINST THE COUNCIL MEETING.
AND THEN WHAT I WOULD ALMOST SAY IS, WELL THEN LET'S ALSO PLAN ON MARCH 30TH, BECAUSE THAT WAY IT DOES GIVE US SOME FLEXIBILITY IF WE HAVE TO DROP APRIL 6TH THEN TO GET EVERYTHING.
BECAUSE WHAT I WANNA MAKE SURE WE DO IS THAT WE HEAR FROM ALL THE DEPARTMENTS AS, AS WE'VE GOT 'EM DEFINED ON THE ORG CHART.
UM, SO I WANT TO HEAR FROM ALL THOSE DEPARTMENT HEADS AND I WANT TO HEAR, I WANNA HEAR THE WHOLE NUMBERS.
I THINK THAT'S WHAT A LOT OF PEOPLE WANT TO KNOW.
THEY DON'T WANT TO KNOW JUST WHAT THE CHANGES ARE.
THEY WANT TO KNOW WHAT WE'RE TALKING ABOUT SPENDING IN THESE AREAS, AND WE REALLY, I DON'T THINK WE HAVE A GOOD FEEL FOR HOW LONG THAT'S GONNA TAKE.
I KNOW SOME OF 'EM SHOULD GO PRETTY QUICK.
UM, AND SOME OF 'EM I THINK ARE PRETTY WELL DEFINED, UH, ESPECIALLY WHEN WE GET INTO THE PUBLIC WORK SIDE OF IT.
BUT I THINK WE NEED TO MAKE SURE WE HAVE ENOUGH TIME TO DO IT.
AND IF WE JUST LEAVE OURSELVES A COUPLE OF ESCAPE DATES KIND OF AT THE END IF WE NEED THEM, I THINK THAT WILL HELP US.
UM, BECAUSE WHEN WE DO ANYTHING ON A, ON A DAY THAT'S NOT A COUNCIL MEETING, WE'VE GOT MORE LEEWAY.
AND IF WE WANNA START A LITTLE BIT LATER SO THAT MORE PEOPLE CAN COME, THAT'D BE FINE BY ME.
UM, I MEAN, I THINK THAT'S UP FOR DISCUSSION, IF I MAY.
ONE POINT, UM, SO KATHY HAS LISTED, UH, IS IT APRIL 3RD FOR A CITYWIDE, OR I'M SORRY, APRIL 13TH FOR A CITYWIDE PRESENTATION.
I THINK THAT'S SORT OF AN INTERESTING, UH, TOPIC.
I MEAN, WE, WE DON'T OFTEN TALK ABOUT THE BUDGET IN CITYWIDE TERMS. WE DON'T PRESENT IT IN CITYWIDE TERMS. WHY? 'CAUSE WE DON'T REALLY BUDGET THAT WAY, AND THAT'S NOT, YOU KNOW, WE DON'T OPERATE THAT WAY.
SO IF YOU'RE LOOKING FOR A DATE WHERE WE CAN DOUBLE UP, I'M NOT SUGGESTING YOU SHOULDN'T LOOK CITYWIDE AND, AND LOOK AT TRENDS THAT EXIST ACROSS THE CITY AS AN ORGANIZATION.
BUT IF YOU'RE LOOKING FOR A DATE WHERE THERE'S PROBABLY SOME ROOM TO DOUBLE UP ON SOMETHING OR TO ADD ANOTHER TOPIC TO, THAT'S PROBABLY A DAY
[00:50:01]
I WOULD SAY.SO THAT, THAT ALMOST SOUNDS LIKE IF WE JUST USED ONE NON, UM, COUNCIL DAY AND THEN WE COULD ASSESS IT.
AND IF WE THOUGHT WE WERE JUST WAY TOO FAR OFF, WE'D STILL HAVE THAT APRIL 6TH.
BUT OTHERWISE WE COULD, WE COULD DO A LITTLE BIT OF DOUBLING UP ON THE 13TH IF THAT'S WHAT WE NEEDED.
I I THINK THAT WOULD ACTUALLY BE A COUNCIL DAY IF I, IF I HEARD YOU RIGHT.
YOU'RE PROBABLY ABOUT TO SAY WHAT I'M GONNA SAY.
UM, UH, SO THEN WE WOULD START ON THE NINTH.
I APPRECIATE A COUPLE EXTRA WEEKS.
THEN WE WOULD, UH, COME BACK ON THE 23RD.
AND IF I HEARD YOU A SECOND AGO, MAYOR, YOU WOULD ADD THE 30TH AND THEN WE WOULD PLAN FOR A, A NORMAL, UH, WORKSHOP OR HOWEVER YOU WANNA PHRASE IT, THEN ON ON APRIL 13TH.
AND IF WE JUST FELT WE WERE WAY TOO FAR BEHIND, IT STILL GIVES US APRIL 6TH IF WE NEED TO PLAY CATCH UP.
AND SO ON THE DAYS THAT WE HAVE COUNSEL, LIKE TODAY, WE STARTED THIS WORKSHOP AT THREE.
SO DO YOU THINK WE WOULD DO THAT OR DO YOU THINK EARLIER AND THEN TWO, IF WE HAD, WHEN WE HAVE THE MARCH 30TH EXTRA MEETING, WOULD WE START THAT AT TWO 30 OR THREE? SO LET'S ADDRESS THE COUNCIL DAYS FIRST.
I WOULD PROBABLY START IT AT TWO OR TWO 30 TO GIVE US TIME TO WORK.
UM, 'CAUSE RUNNING UP AGAINST THAT TIME DEADLINE IS SO TOUGH.
UM, BUT THEN ON THAT EXTRA DAY WHEN WE TALKED ABOUT MARCH 30TH, WE COULD DO IT THEN WE COULD START IT, WE COULD START IT LATER IF THAT'S WHAT WE WANTED TO DO TO ALLOW PEOPLE, OTHER PEOPLE TO COME THAT THAT CAN'T BECAUSE OF THEIR WORK SCHEDULES.
IF WE'VE GOT PEOPLE IN THE PUBLIC OUT THERE WHO'D LIKE TO ATTEND, UM, IT'D GIVE US SOME FLEXIBILITY.
IT'S ALSO KEEPING STAFF HERE I KNOW INTO THE EVENING MEETING.
I THINK I'D RATHER LIKE, MAYBE WE, BECAUSE I GET CONFUSED.
I REMEMBER LAST YEAR LIKE SOMETIMES THEY WERE AT THREE AND SOMETIMES THEY WERE AT THREE 30.
AND I WOULD CONSTANTLY BE LIKE, AM I LATE? WHAT IF WE JUST ALWAYS START AT TWO 30? WHAT DOES THAT SEEM REASONABLE? OR ALWAYS START AT TWO? SO THEN WE'RE NOT LIKE CONFUSING OURSELVES AND THE PUBLIC.
I WOULD BE FINE WITH STARTING AT TWO TO BE QUITE HONEST.
HE'S THE ONE THAT IS BUSY THIS TIME OF YEAR, SO HE'S GOOD TO ME.
SO JUST TO BE CLEAR, SO THEN ON MARCH 9TH, MARCH 23RD, MARCH 30TH AND APRIL 13TH, WE WOULD'VE A B BUDGET WORKSHOP EACH OF THOSE DAYS.
THAT WOULD START AT TWO O'CLOCK.
I THINK THAT WORKS FOR ME TOO.
AND WE CAN, UH, SHIFT IF WE NEED TO.
I MEAN, YEAH, IF WE HAD AVAILABLE TIME, WE COULD EVEN DO OTHER TOPICS ON ONE OF THOSE DAYS.
'CAUSE WE DO HAVE STUFF TO GET TO.
I THINK YOU SAID THOUGH THAT AJ YOU'RE PLANNING ON KIND OF WORKING THOSE, SOME OF THOSE INTO THE DISCUSSION PART OF THE AGENDA.
I GUESS THAT'S A COUNCIL TOPIC FOR LATER.
PENDING WHATEVER THE COUNCIL DECIDES.
KATHY, DOES THAT WORK FOR YOU? YES.
I THINK I KNOW WHAT YOU, WHAT WE'RE EXPECTING, SO YEAH, THAT'D BE GREAT.
'CAUSE THAT'LL GIVE US FIVE OPPORTUNITIES AT A MINIMUM AND WITH A COUPLE EXTRA DAYS IN THERE IF WE NEED THEM.
NOBODY'S WIGGLING IN THEIR CHAIR BACK THERE, UH, IN A CONCERNING WAY.
STAFF, I MEAN, THEY GOTTA SUPPORT ALL THIS TOO.
OKAY, WELL IF YOU CAN'T FAKE THAT KIND OF ENTHUSIASM OUT THERE,
SO, SO WE, WE DO NEED TO DECIDE HOW DEEP WE WANT TO GO THOUGH.
AND IF IT'S DEPARTMENTS OR DIRECTORS, LIKE THOSE ARE DIFFERENT ANSWERS, RIGHT? SO, SO THANK YOU.
I THINK THAT ANSWERS THAT QUESTION.
WE'LL JUST GO AHEAD AND SET IT UP THAT WAY.
IF WE NEED TO CHANGE IT, WE'LL CHANGE IT, BUT THANK YOU.
'CAUSE I THINK THAT'S KIND OF THE, I DON'T THINK SHE HEARD ME.
SO THIS IS ALSO THE PROCESS AND, UM, OH, OH, SORRY.
NO, NO, HE MAYBE YOU GOOD? HE GOT HEAD OF YOU.
SORRY, I WAS KIND, I SHOULD HAVE LOOKED JUST HERE, BUT I WAS LOOKING SORRY, I DIDN'T KNOW IT WAS ON THE NEXT SLIDE.
BECAUSE WE DO HAVE, SO THERE ARE A COUPLE OPPORTUNITIES, UM, BUDGET PRIORITIES AND NEW REQUESTS.
OUR BUDGET REQUEST, AND THIS IS A SLIDE PAST THIS, BUT BUDGET REQUESTS FROM MEMBERS FOR THE CITY
[00:55:01]
OF THE CITY COUNCIL TO BE INCLUDED FOR CONSIDERATION AT FUTURE MEETINGS.SO THAT'S REALLY, UM, IF I CAN GET GUIDANCE ON WHAT YOU'RE EXPECTING, THEN WE WILL, AT FUTURE MEETINGS, I'LL ACTUALLY PUT IT TOGETHER THAT WAY SO THAT YOU CAN SEE IT AND THEN WE CAN DISCUSS IT AND YOU CAN CHANGE THOSE.
BUT, UM, IN ORDER TO YES, SET UP THE WORKSHOPS, REALLY WHAT YOU WANT TO HEAR, HOW YOU WANT TO HEAR FROM THE DIFFERENT PEOPLE, UM, IF WE COULD KIND OF TALK ABOUT THAT A LITTLE BIT, WE WILL SET THE WORKSHOPS UP THAT WAY.
SO, SO MY, MY FIRST QUESTION IS PRESENTATION FOCUS.
WHAT DO YOU WANT TO HEAR FROM, DO YOU WANT EVERY DEPARTMENT DIRECTOR, DO YOU WANT, UM, TO SLICE AND DICE A DIFFERENT WAY AND LIKE, I THINK MAYOR, YOU JUST SAID SEE THE WHOLE BUDGET RATHER THAN JUST THE CHANGES, RIGHT? SO THINGS LIKE THAT.
UM, ANYTHING THAT YOU'RE, UH, THINKING OF IS WHAT THE PRESENTATION OF EACH DEPARTMENT SHOULD BE.
WOULD YOU LIKE, SO LET, LET, YEAH, LET ME JUST KIND OF PUT MY 2 CENTS WORTH IN AND THEN YOU ALL CAN TELL ME I'M CRAZY OR ADD, ADD ON TO THE TOP OF IT.
UM, I MEAN, I LOOK AT IT AS WE HAVE AN ORG CHART THAT SAYS WE HAVE CERTAIN NUMBER OF DEPARTMENTS WITHIN OUR CITY.
AND THAT'S WHAT OUR EXPECTATION IS AS FAR AS I'M CONCERNED.
THAT'S WHAT WE'RE EXPECTING TO SEE IS A PRESENTATION ON EACH OF THOSE.
UM, SO WHEN WE TALK ABOUT POLICE, WE'RE JUST TALKING ABOUT THE POLICE DEPARTMENT, EVERYTHING THAT COMES UNDERNEATH IT.
THAT'S LITERALLY BETWEEN CHIEF YOUNGER AND AJ AND HOWEVER THAT FLESHES OUT BECAUSE OUR CONCERN IS, IS MAKING SURE THAT EVERY ONE OF OUR DEPARTMENTS HAS THE FUNDS AT THE LABEL, AT THE LEVEL WE APPROPRIATE.
BUT WE DO WANT TO SEE THEIR BUDGET, THEIR ROLLED UP BUDGET, AND WHAT IT LOOKS LIKE.
AND THAT MEANS WE KNOW HOW MANY FTE THEY HAVE AND WHAT THE PAYROLL COST IS, INCLUDING BENEFITS THAT WE KNOW WHAT SUPPLIES AND MATERIALS COST IS.
UM, AND THEN ON TOP OF THAT, THEN WHAT ARE THE CHANGES FROM THIS YEAR TO WHAT THEY'RE ASKING FOR FOR NEXT YEAR.
AND IF WE UNDERSTAND WHAT THOSE CHANGES ARE, THAT'S ALLOWING US TO MAKE DECISIONS WHEN WE TALK ABOUT THE WHOLE, BECAUSE WE'RE GONNA HAVE TO MAKE IT FIT WITH WHATEVER THAT REVENUE NUMBER IS.
AND A LOT OF THAT I THINK WILL BE DEALT WITH AJ AS YOU GO THROUGH IT.
BUT IN THE END, WE MAY STILL HAVE, WE GOT THIS NEED OVER HERE AND THIS NEED OVER HERE.
COUNCIL, DECIDE WHAT THE PRIORITY IS.
IS THAT A FAIR STATEMENT? IT IS.
AND, UM, UH, SO THE COUNCIL'S AWARE THE DIRECTION THAT WE'VE BEEN, UH, PREPARING WHAT I WOULD CALL THE DRAFT BUDGETS WITH IS, UH, PUTTING, UH, PERSONNEL INTO ITS OWN CATEGORY AND A BIT OF A PLACEHOLDER FOR NOW ON WHAT I WOULD GENERALLY CALL SUPPLIES AND SERVICES.
BUT THOSE, I THINK IT'S 82 HUNDREDS, 83 HUNDREDS, 84 HUNDREDS AS I'M LEARNING OUR SYSTEM, UM, WE'VE ASKED THE DEPARTMENT DIRECTORS TO BE FLAT THERE AND THUS FAR THEY GENERALLY ARE.
UM, AND IN FACT, A COUPLE HAVE EVEN FOUND WAYS TO GO DOWN A LITTLE BIT.
NOT SAYING THAT'LL BE THE FINAL NUMBER.
AND OF COURSE, AS I JUST SAID, WE'VE SEGREGATED PERSONNEL FOR A WHILE, WHICH WILL BE OUR, OUR BIGGEST COST DRIVER.
BUT YES, I THINK THAT FITS IN WITH, WITH WHAT YOU SAID A SECOND AGO, MAYOR, THAT AS YOU AND AS THE COUNCIL HAS AN OPPORTUNITY TO HEAR FROM EACH DEPARTMENT DIRECTOR ABOUT THE THINGS YOU TALKED ABOUT, THE NUMBER OF, UH, YOU KNOW, UH, FULL-TIME EMPLOYEES, UM, THE VARIOUS COST CATEGORIES, AND THEN TO GET DIRECTION FROM YOU, UH, AS A WHOLE ON THE CHANGES YOU WANT TO MAKE.
AND THEN, UH, FORGIVE THE EXPRESSION, IT FEELS LIKE WE'RE GONNA PROBABLY BACK INTO, UH, TO OUR REVENUE NUMBER OR THAT REVENUE NUMBER MIGHT GET SET BASED ON, UH, THE COUNCIL DIRECTION AND WHATEVER ELSE WE LEARN AFTER POST THE AUDIT AND, AND THOSE THINGS, THEN WE WILL HAVE TO WORK TO MAKE SURE THOSE TWO MATCH.
OUR GOAL IS TO, I THINK OUR GOAL WAS TO, UH, AND WE'LL TALK ABOUT THIS LATER IN THE BUDGET COMMITTEE RECOMMENDATIONS, BUT COME IN WITH A TARGET AND THEN KIND OF ITERATE THAT TARGET AS WE GO THROUGH THE PROCESS ON JUST ON THE REVENUE SIDE.
SO I WAS, I HAD TO PULL UP THE ORG CHART JUST TO REMEMBER WHAT WAS THE NUMBER YOU SAID A MINUTE AGO OF DIRECTORS? HOW MANY? 23.
I WAS TRYING TO, DEPARTMENTS AND DIRECTORS I WAS TRYING TO CORRELATE.
SO THAT'S ABOUT, THAT'S ABOUT THE LEVEL I WOULD EXPECT.
JUST LOOKING AT THE ORG CHART.
UM, I JUST WANNA REITERATE ONE THING THE MAYOR SAID LAST YEAR,
[01:00:01]
AND I WAS NEW TO THIS, BUT, UM, WHEN WE WOULD COME TO THESE WORKSHOPS, A LOT OF TIME THERE WAS LIKE THE, THE DATA, THE SPREADSHEET BEHIND THE SLIDE HADN'T BEEN PUT OUT THERE.AND SO IT WAS, UM, KIND OF UNDERWHELMING TO COME IN AND JUST SAY, WELL, WE HAD 10 PEOPLE LAST YEAR AND WE HAVE 10 PEOPLE NEXT YEAR.
SO I'M PERSONALLY COUNTING ON BEING ABLE TO GO THROUGH THAT DATA OFFLINE BEFORE THE MEETINGS TO SEE, UM, AND I'M NOT GONNA GO THROUGH AND LIKE TRY TO CHANGE NUMBERS, LINE ITEM LEVEL.
I JUST WANNA UNDERSTAND KIND OF WHAT'S FEEDING INTO THE FOUR CATEGORIES ON EVERYBODY'S.
UM, OTHERWISE IT'S LIKE WE'RE JUST REVIEWING THE WAS IS AT THE, AT THE CATEGORY LEVEL.
SO I'D LIKE TO HAVE THOSE AVAILABLE AT LEAST IN DRAFT FORM TO LOOK AT BEFORE WE HAVE THE WORKSHOPS ON THOSE.
NOW THEY'RE SQUIRMING BACK THERE.
I DON'T THINK THEY BELIEVE YOU THAT YOU'RE NOT GONNA TRY AND CHANGE THE NUMBERS.
I THINK EVERYONE OUT THERE HAS SEEN YOU IN ACTIONS, SO FAIR ENOUGH.
COMMENTS FROM DOWN HERE? QUESTIONS? THOUGHTS? I, YOU SAID A LOT OF, THEY SEEM TO BE GOOD WITH THAT.
I'M GOOD WITH IT, BUT I HAVE A LINGERING THOUGHT BECAUSE I'M A MOM.
ARE YOU THINKING TWO HOURS? ARE YOU THINKING YOU WANT TO RESERVE LONGER TIME THAN THAT? WELL, IF WE START AT TWO, WE'VE GOT UNTIL ESSENTIALLY 4 30, 4 45.
SO IF THAT'S WHAT IT TAKES, THAT'S TWO HOURS AND 45 MINUTES.
ARE, I KNOW, I KNOW THAT FOR CITY COUNCIL DAYS, BUT FOR THE DAYS LIKE MARCH 30TH WHERE WE DON'T HAVE CITY COUNCIL, ARE YOU STILL THINKING TWO HOURS FOR THAT DAY? I WOULD LIKE TO KEEP IT IN THAT RANGE.
I WAS JUST CHECKING
SO THAT WAS STUCK IN MY HEAD, BUT I'M GOOD WITH YOUR, WITH THE OTHER RECOMMENDATIONS YOU MADE.
I MEAN, TO ME, I WOULD PREFER WHEN WE GET TO THAT MARCH 30TH, WHICH IS THAT FIRST IT'S AN OPEN DATE.
RIGHT? WHEN WE GET THERE, IF WE'RE TRYING TO KEEP IT IN THAT TWO, TWO AND A HALF HOUR RANGE, IF IT LOOKS LIKE WE'RE GONNA GO MUCH LONGER NO.
THAT'S WHY WE WOULD HAVE ANOTHER MEETING NEED.
HOW LONG ARE YOU THINKING WE WOULD NEED PER LIKE 15 MINUTES? TRYING TO THINK ABOUT HOW IT WENT LAST YEAR.
I THINK IF I DIVIDED IT WHEN I WAS WORKING WITH FOUR, IT WAS LIKE, YEAH, IT WAS LIKE 20 MINUTES.
REALLY? MOST, THERE'S A LOT OF DEPARTMENTS THAT WON'T TAKE BUT FIVE OR 10.
I MEAN, MINE WOULD BE VERY SMALL, BUT WATER WOULD NOT BE, AND PARKS WOULD NOT BE.
SO YOU, YOU'RE GONNA WANT TO SPEND PROBABLY 90 MINUTES ON THE CITY OF CLARKS ALONE.
YEAH, I THINK WE CAN SET IT UP THIS WAY.
AND THEN ONCE AGAIN, IF IT DOESN'T LOOK LIKE IT'S GONNA WORK, WE'LL JUST, WE'LL JUST MODIFY IT.
BUT WE'LL STICK AROUND TWO, TWO AND A HALF HOURS.
SO MOVING ON TO REVENUE AND YOU KNOW, WE TALKED ABOUT THE TARGETS A LITTLE BIT.
WE'VE KIND OF TALKED ABOUT IT HERE AND THERE, BUT, UM, I GUESS ANY GUIDANCE, YOU KNOW, THANK YOU TO DR. EVANS FOR COMING AND JUST KIND OF GIVING US AN UPDATES, KIND OF WHAT WE EXPECTED.
I THINK KIND OF WHAT WE'VE SEEN, UM, WITH OUR LAST CHECKS, OUR JANUARY CHECK, WE ACTUALLY ARE ABOVE THE LINE NOW.
SO COMBINED SALES AND USE IS SLIGHTLY POSITIVE, WHICH IS GOOD.
ONE THING THAT WE DID HAVE WAS THAT REPAYMENT, WHICH NOT ONLY DID WE HAVE THE REPAYMENT, BUT WE ALSO DIDN'T COLLECT IT.
SO IT WAS KIND OF A DOUBLE HIT, UM, FOR THAT YEAR.
WHEN I RUN IT THROUGH JUST MY NORMAL THING THAT I'VE KEPT FOR FIVE YEARS NOW, AND I, I HAVE A FORMULA THAT LOOKS AT SPENDING HABITS MONTH OVER MONTH.
I COME UP AT THE END OF 26, SO ROLLING INTO 27,
SO WE DON'T, WE WANNA BE CONSERVATIVE, BUT ANY EXPECTATIONS OR GUIDANCE ON WHERE WE SHOULD GO TYPICALLY? OKAY, SO I'LL TELL YOU THIS TOO.
I CAME IN 2020 AND WE ALWAYS, 'CAUSE IT'S JUST WHAT EVERYBODY DID.
WE, WE, UH, FORECAST 2% FOR SALES TAX GROWTH, 5% FOR, UM, USE TAX GROWTH.
AND THEN I THINK EVERYTHING ELSE WAS KIND OF 2% USE TAX HAS ALWAYS BEEN A LITTLE BIT HIGHER.
THEN WE WENT THROUGH COVID AND IT WAS HIGHER THAN WE EXPECTED AND THEN WE CAME OUT OF COVID AND IT'S LOWER THAN EXPECTED.
SO, I MEAN, PERSONALLY I DON'T THINK WE'RE GONNA LOSE, BUT YOU DON'T KNOW.
[01:05:01]
SO LOOKING AT WHERE WE ARE RIGHT NOW, BECAUSE I THINK WE'RE, YOU GUYS ARE PROBABLY GONNA TELL ME I'M WRONG, BUT I, WE'RE, WE'RE A SOLID 5% GROWTH RIGHT NOW ON OUR USE TAX.SO JUST GIVE ME YOUR THOUGHTS.
I GUESS I WAS THINKING AROUND ONE TO 2% ON SALES, PROBABLY FIVE ON USE, OTHER 1% AND THEN CHARGES FOR SERVICES AND ALL THE, UH, ENTERPRISE FUNDS, THEY ESTIMATE THEIR OWN REVENUE BECAUSE THEY BASE IT ON, YOU KNOW, NUMBER OF CUSTOMERS AND RATES AND ALL THAT STUFF.
SO WHAT ARE YOUR THOUGHTS ON, 'CAUSE THIS IS, THIS INVOLVES YOUR TARGET AND YOU KNOW, WITH OUR NEW SOFTWARE WE CAN DO DIFFERENT SCENARIOS TOO.
SO MAYBE A TOP END AND A LOW END.
I AM NOT SEEING A LOT OF JUMPING AT MICROPHONES HERE.
UM, I'M SITTING PRETTY SOLIDLY WITH AJ AT THIS POINT THAT I WOULD SAY THE ZERO GROWTH.
UM, DR. EVANS PRESENTATION TODAY WAS NOT EVEN NEARLY AS CHIPPER AS IT WAS A YEAR AGO.
AND IT WAS, YOU KNOW, HE'S BASICALLY SAYING, WHERE ARE WE? AND WE'RE NOT LOOKING AT WHAT HE THOUGHT WAS GONNA BE HAPPENING IN THE SECOND HALF OF 25 OR 26.
MAYBE WE'RE SORT OF KIND OF GOING WHERE HE THOUGHT 26 WOULD LEAD US, BUT WE'RE SURE NOT.
I MEAN, WITH ONE MONTH WE DON'T HAVE ANY NUMBERS TO PLAY WITH.
I WOULD SAY WE'RE JUST ABSOLUTELY FLAT.
AND THEN I THINK THEN THE QUESTION BECOMES, WHAT ARE WE TRYING TO SHOOT FOR ON A RESERVE? YOU KNOW, IF WE'RE, WE'RE SUPPOSED TO BE SHOOTING FOR A 10% RESERVE AND IF WE'RE TRYING TO, IF WE'RE TRYING TO FIGURE OUT WHERE WE START, THOSE TWO NUMBERS PLAY INTO WHAT YOU AND AJ AND EVERY DEPARTMENT HEAD HAS TO WORK WITH.
SO THAT'S WHAT I WAS LOOKING AT IN MY NOTES.
SO LAST YEAR WE GENERAL FUND RESERVE BALANCE IS LIKE THE, THE KEY NUMBER TO ME.
AND THEN, AND THEN WE DIAL UP OR DOWN WHAT WE WANT TO ASSUME ABOUT REVENUE.
LAST YEAR WE, WHEN WE WERE SITTING IN THE OTHER BUILDING, WE PUSHED HARD TO MUCH OF YOUR DISCOMFORT IN THE ROOM HERE TO GET TO LIKE EIGHT POINT WHAT? 2% PROJECTED GENERAL FUND BALANCE IN THE BUDGET.
WE ENDED THE YEAR AT 4.3% BECAUSE THINGS CAME UP.
SOME OF THAT'S NUANCE IN THE FINANCIALS, BUT THAT'S WHERE WE ENDED.
SO NOW GOING INTO THIS YEAR, WE'RE SITTING AT 4.3%.
I MEAN THIS WAS AS OF LAST SUMMER, RIGHT? 'CAUSE IT TAKES A WHILE TO GET EVERYTHING DONE, BUT STATEMENT'S ALL WRAPPED UP, BUT WE WERE AT 4.3%, RIGHT? LIKE THAT'S, SO I THINK I'M, I'M WITH THE MAYOR HERE.
LIKE WE, IT STILL FEELS TO ME LIKE, UM, DR.
EVAN'S PRESENTATION WAS PRETTY DEPRESSING.
BUT THAT PLUS THE LOW GENERAL FUND BALANCE, UM, PLUS, I DON'T KNOW, JUST GENERAL SALES TAX TRENDS.
I'M LEANING TOWARDS FLAT AS WELL.
REMIND ME, DID WE ASSUME ANY USE TAX GROWTH LAST YEAR? YES.
FIVE ZERO IN SALES FOR ANDY, SAM? FOUR.
AND, AND THEN WE DID 1, 1 1 AND IT MAY HAVE BEEN FOUR.
BUT IT WASN'T LIKE ONE OR IT WASN'T ZERO.
AND WAS IT, IT WAS ZERO SALES TAX ZERO FOR THIS YEAR.
GROSS, BUT THEN 1% FUTURE, SO.
BUT YEAH, FOR THE NEXT YEAR IT WAS ZERO AND WE'LL SAY FOUR.
AND THEN I THINK WE DID LIKE ON ALL THE OTHER TYPES OF INCOME THAT IN, IN, UH, GOVERNMENTAL IT WAS 1%.
SO PERMITTING, INSPECTION FEES, THAT KIND OF THING? YEAH, I MEAN, JUST PRACTICALLY, IF WE'RE, WELL, PERSONNEL COST GOES UP A LITTLE BIT EVERY YEAR.
SO IF WE HOLD IT FLAT, THEN WE'RE ACTUALLY, YOU KNOW, DECREASING EVERYBODY'S ALLOCATION.
SO JUST REALISTICALLY, WE GOTTA KIND OF KEEP THAT IN MIND AND IT, IT IS GONNA EVOLVE OVER THE NEXT FEW YEARS, BUT THE WAY WE'RE DOING IT THIS YEAR, YEAH, WE'RE STILL GONNA HAVE TO KIND OF BACK INTO IT.
AND, UM, SINCE WE DON'T HAVE ALL THE PAYROLL NUMBERS, HR NUMBERS IN THERE YET, THAT'LL BE A HUGE, YOU KNOW, NUMBER THAT YOU'RE GONNA HAVE TO LOOK AT.
SO, AND I JUST, REALISTICALLY, IF WE WANT, LIKE IF WE STOOD UP HERE AND SAID, SAT UP HERE AND SAID WE WANT TO GET BACK TO 10% GENERAL FUND RESERVE, LIKE THAT'S A LOT OF DOLLARS TO GET FROM 4.3%
[01:10:01]
TO 10.WE SAW HOW HARD IT WAS LAST YEAR TO GET FROM SEVEN TO EIGHT POINT WHATEVER, 7.3 TO 8.2 OR WHATEVER IT WAS.
SO, AND WE'RE TALKING ABOUT MULTIPLE MILLIONS OUT OF A LIMITED GENERAL FUND.
SO I THINK WE'RE GONNA HAVE TO TRY TO BITE THAT OFF OVER A FEW YEARS LIKE WE DID LAST YEAR.
I THINK IN ROUND NUMBERS, IF YOU WERE GONNA TRY AND GET THERE, IF THE COUNCIL'S DECISION OR DIRECTION WAS TO GET THERE ESSENTIALLY OVERNIGHT AND GET THERE WHEN WE BEGIN 26, 27, YOU'RE EASILY TALKING FIVE AND CHANGE MILLION DOLLARS.
THERE, I MEAN, YOU KNOW, THIS, YOU KNOW THIS BETTER THAN ME.
THERE IS NOT THE ABILITY FOR US TO, UH, ADD FIVE AND CHANGE MILLION DOLLARS TO THE FUND BALANCE.
WITHOUT SIGNIFICANT CUT, DRAMATIC.
I DON'T WANNA SUGARCOAT IT AND I DON'T WANT TO BE DOOM AND GLOOM.
I JUST WANT TO MAKE SURE THAT EVERYONE WALKS OUTTA HERE WITH SOME EXPECTATION AND SOME ABILITY TO UNDERSTAND WHAT'S COMING GOING FORWARD.
WHAT I, I GUESS WHAT I DON'T HEAR THE COUNCIL SAYING RIGHT NOW IS, CITY STAFF STAND ON YOUR EAR TO GET TO 10% UNRESERVED FUND BALANCE.
AND CORRECT ME IF I'M WRONG, WHAT I THINK I HEAR YOU SAYING IS THAT'S WHERE YOU WANT TO BE FOR, FOR WHATEVER REASON, THAT THAT'S WHERE YOU WANT TO GET TO AND YOU WANT TO SEE OUR ABILITY TO GET TO THAT NUMBER, WHAT IT WOULD TAKE.
I ALSO DON'T HEAR EVERYONE UP HERE SAYING SLASH AND BURN TO GET TO THAT NUMBER.
SO LET'S PROBABLY PROBABLY LOOK AT SOME SCENARIOS AND I THINK THE COUNCIL WOULD FIND ITSELF IN A BETTER POSITION TO UNDERSTAND WHAT THE IMPACT WILL BE ONCE YOU START GETTING INTO THE BUDGETS.
I MEAN, I, HAVING BEEN THROUGH A FEW MUNICIPAL BUDGETS, I THINK WHAT IS LIKELY GOING TO HAPPEN HERE IS WHAT HAPPENS EVERYWHERE YOU SEE THE IMPACT OF TARGETS, YOU SEE THE IMPACT OF, OF, OF DIRECTION.
THAT'S NOT ENOUGH, THAT'S TOO MUCH, THAT'S NOT ENOUGH.
AND WE'LL KIND OF PIECES THEM AND, AND PARTS IT TOGETHER.
DOES ANYONE DISAGREE WITH HOW I SAID THAT? I AGREE WITH IT.
I DON'T THINK WE CAN GET TO 10 REALISTICALLY WITHOUT DRASTIC CUTS.
I THINK MY, MY GOAL WOULD BE TO IMPROVE IT.
I MEAN, LAST YEAR WE USED 4 MILLION OF IT.
SO IF WE JUST HOLD IT, YOU KNOW, THAT'S RISKY TO ME, BUT WE ONLY HAVE SO MUCH MARGIN THAT WE CAN CREATE WITHOUT, WITHOUT MAJOR IMPACT.
SO I THINK THAT'S PRACTICAL THE WAY YOU SET IT.
BUT IF WE NEED TO PICK A NUMBER, THEN WE NEED TO PICK A NUMBER OR TELL YOU WHAT TO ASSUME OR BECAUSE, AND I'LL GO BACK TO SOMETHING I SAID A FEW MINUTES AGO.
I, I DON'T WANT ANYONE ON THE COUNCIL TO BE SURPRISED.
I, AS I JUST TOLD YOU, THE DEPARTMENT DIRECTORS I THINK HAVE DONE A GOOD JOB THUS FAR, UM, KEEPING THEIR BUDGETS FLAT AND IN SOME CASES A A LITTLE BIT DOWN.
OFTENTIMES THAT IS IN THE THOUSANDS OF DOLLARS.
WHEN WE GET INTO THE PERSON AND THAT'S ABSENT PERSONNEL, WE GET INTO THE PERSONNEL SIDE, WE'RE GONNA START TALKING ABOUT HUNDREDS OF THOUSANDS OF DOLLARS, WHICH WILL LIKELY, UM, UNDO A LOT OF THE, THE GOOD WORK THAT'S ALREADY BEEN DONE.
AND THAT'S A AT A POINT I THINK WHERE THE COUNCIL'S GONNA HAVE TO STEP IN AND SAY, THIS IS TOO MUCH, THIS IS NOT ENOUGH.
I DON'T LIKE WHAT THIS DOES HERE.
I DON'T LIKE WHAT THIS DOES THERE, BUT I'M ALSO, I I WANNA MAKE SURE WE'RE ON THE SAME PAGE.
I'M ALSO, I DON'T THINK WE'RE GONNA LEAVE HERE TONIGHT WITH THE EXPECTATION THAT WE'RE LOOKING AT SOME MASS REDUCTION IN FORCE.
I DON'T, I WANT I AGREE WITH THAT.
I DON'T WANT TO LEAVE HERE WITH THAT THOUGHT IN ANYBODY'S MIND.
NO, WE WE'RE HAVING TO LEARN HOW TO GET AHEAD OF THAT GAME WHEN WE'RE LOOKING AT, AT FORECASTING OUR REVENUE, DECIDING WHAT THAT NUMBER IS AND SETTING WHAT THAT RESERVE IS AS WE BUDGET AND GIVE PEOPLE THE RESPONSIBILITY TO RUN THEIR BUDGETS.
UM, THERE IS NO WAY THAT WE CAN JUST, LIKE, THERE'S NO WAY THAT ALL THE THINGS THAT, THAT PRESTON AND I THOUGHT COULD BE ACCOMPLISHED THROUGH BUDGET REFORM IN ONE SHOT, WE TOOK THE FIRST STEP.
AND THE THING WE CAN'T DO IS WE CAN'T SHORTCHANGE WHAT WE DO FOR THE PUBLIC.
WE'VE GOTTA CONTINUE TO PROVIDE THE SERVICES AND IT MEANS WE'VE GOTTA FIGURE OUT HOW TO INCH OUR WAY TOWARDS THAT 10%.
I'M, I'M, I'M GLAD THAT WE HAD JUST THAT LITTLE BIT OF CLARIFICATION AND I, I CERTAINLY FEEL BETTER.
SOUNDS LIKE WE'RE REALLY SAYING FLAT AND LET'S FIGURE OUT WHAT WE CAN
[01:15:01]
DO WITH THAT RESERVE AS WE HEAD THAT WAY.UM, IS THAT WHAT I HEARD? I HEARD FLAT AND THEN WE'LL, WE'RE NOT GONNA THE, THE RESERVE, WE'RE NOT GONNA FIGURE THIS OUT TODAY.
AND WE, AND WE CAN START SOMEWHERE, BUT I JUST, I THINK WE NEED TO BE MINDFUL HOW WE DO THAT GOING FORWARD.
WE, OH, SO I, IF THE COUNCIL DIRECTION IS TO BEGIN WITH, UH, FLAT AND, AND SALES TAX, THEN THAT'S WHERE WE'LL START AND YOU'LL SEE WHAT THAT LOOKS LIKE AND YOU'LL SEE WHAT THE IMPACT, UH, WILL BE OVER THE COURSE OF THE NEXT, YOU KNOW, SIX OR OR OR SEVEN WEEKS.
ALSO WITHIN THAT TIMEFRAME, WE'LL WE'LL MAYBE GET AT LEAST ONE, MAYBE TWO MORE, UH, SALES TAX REPORTS AND MAYBE THERE'LL BE A, SOMETHING THAT WILL CLARIFY, UM, 'CAUSE AS WELL.
SO WE'LL CONTINUE TO GATHER DATA, WE'LL CONTINUE TO REVISIT THE NUMBER.
WE'LL, WE'LL BE, WE'LL BEGIN BASED UPON, UH, A FLAT SALES TAX NUMBER.
AND UH, I'M NOT SURE IF I HEARD, WHAT DO YOU STILL WANT TO USE? 5%, UM, FOR A USE AND THEN 2% ALL OTHERS MEANING ALL OTHER FEES? I WOULD BE A BIT SKEPTICAL ON THE 5%.
JUST BASED ON WHAT WE'VE HEARD TODAY.
UM, I'M NOT SURE WHERE THAT LANDS, BUT I THINK STICKING WITH 5% MIGHT BE A LITTLE BIT AGGRESSIVE.
THOUGHTS? SO USE TAXES UP 5.86 THIS YEAR.
I MEAN, SOME NOT GREATER THAN ZERO I THINK IS PROBABLY SAFE.
HOW MUCH GREATER THAN ZERO? I DON'T KNOW.
YEAH, I MEAN LAST YEAR WAS FOUR SOMETHING IN THAT RANGE OF REASONABLE.
I MEAN, I BE, I MEAN I MIGHT BE COMFORTABLE WITH FOUR IF THAT'S WHAT, THAT'S WHAT WE USED PROJECTING FOR THIS YEAR, RIGHT? KATHY WAS FOUR? YES.
I MEAN, WE'LL, AND WE'LL HAVE A BETTER IDEA.
OBVIOUSLY WE GET A COUPLE OF MORE REPORTS UNDER OUR BELT, UM, IF WE HAVE TO ADJUST IT.
YEAH, IT'S NOT AS IF YOU'RE DECIDING YEAH, TODAY.
IT'S A PRELIMINARY NUMBER TO START WITH.
Y'ALL HAPPY WITH THAT? AND KATHY, WOULD YOU REMIND ME, WHAT DID THE CITY DO WITH, UH, OTHER FEES? WE DID 1% LAST YEAR.
SO SAME ASSUMPTIONS AS LAST YEAR BASICALLY.
WELL EXCEPT THAT WE, EXCEPT THE SALES TAX EXCEPT FOR YEAH, SALES AND USE.
WELL, WE'LL GENERATE SOME, AT LEAST IT GIVES US SOMETHING, YOU KNOW, TO START LINE WITH THE BASELINE.
UM, I'LL MOVE ON TO PERSONNEL.
I'LL JUST TELL YOU WHAT I'M KIND OF THINKING OR AT LEAST FEEL LIKE I'M HEARING RIGHT NOW.
SO RIGHT NOW WE HAD INTENDED TO GO AHEAD AND RUN THE HR PAYROLL WITH ALL STEPS, NORMAL STEPS THAT WOULD'VE COME IN, UM, NEW POSITIONS, WE FROZE THOSE.
RIGHT NOW IT'S KIND OF BEEN A CASE BY CASE.
SOME WE'VE ALLOWED, SOME WE HAVEN'T.
UM, AND THEN THERE'S ALWAYS RE CLASSIFICATIONS THAT COME IN AND THEY CAN COST MORE MONEY TOO.
SO RIGHT NOW, ALL I KNOW AND EVERYBODY ELSE CAN SPEAK UP, WE ARE GOING TO RUN PAYROLL WITH STEPS, UM, I GUESS AND WE'VE HAD, WE'VE HAD A FEW REQUESTS FOR, UH, ADDITIONAL POSITIONS, COUPLE THAT WE'VE ALLOWED RIGHT NOW.
BUT WE CAN CERTAINLY POINT ALL THAT OUT, YOU KNOW, SO YOU CAN SEE IT.
WE REALLY HAVEN'T DISCUSSED RE CLASSIFICATIONS, SO, UM, I MEAN, AJ YOU WANNA COMMENT Y YEAH, HELP ME AND CAROLINE.
WE'RE PLANNING ON 4% RIGHT NOW.
SO SETTING ASIDE FOR THE MOMENT, UH, WHETHER IT'S A, UH, A RECLASSIFICATION OR WHATEVER ELSE, IT WOULD BE, WE'RE, OUR BASELINE PLANNING RIGHT NOW IS 4% INCREASE ON THE PERSONNEL SIDE.
AND NOW OBVIOUSLY IN PRACTICE IN EACH DEPARTMENT THAT MIGHT LOOK A A LITTLE BIT DIFFERENT, BUT, AND AGAIN, THAT'S JUST WHAT WE'RE BUDGETING AND I, I STILL THINK THAT'S A CONSERVATIVE WAY TO APPROACH IT BECAUSE AS WE KNOW, NOT EVERY POSITION,
[01:20:01]
UH, WILL BE FILLED EVERY DAY OF THE FISCAL YEAR.AND SO THERE THERE'LL BE SOME BUILT IN SAVINGS THERE.
I THINK WE HEARD THE OTHER DAY THAT THE CITY'S CONTRIBUTION TO THE ON THE PENSION SIDE IS GONNA BE HIGHER TOO.
SO LIKE THAT'S A FACTOR IN ALL THAT THAT ACTUALLY DOES.
I THINK IT'S ONE OF THOSE NUMBERS WHERE WE START THERE AND WE'RE JUST GONNA HAVE TO SEE WHAT, WHAT IT LOOKS LIKE BE, BECAUSE I MEAN, YOU KNOW, IT'S MORE THAN 75% OF OUR TOTAL PAYOUT DURING THE YEAR IS PERSONNEL COSTS.
I DON'T, I DON'T CARE HOW GOOD YOU ARE OR HOW GOOD ANY OF THEY ARE, THE, THE PEOPLE OUT HERE ARE, UM, IF YOU'RE TRYING TO SQUEEZE THAT OUT OF YOUR OPERATING EXPENSES, THAT'S NOT GONNA HAPPEN.
SO WE'VE GOTTA FIGURE OUT HOW, HOW WE MAKE IT WORK.
WELL THAT'S, THAT WILL BE OUR BASELINE AND WE'LL COME BACK AND WE CAN DISCUSS THAT.
UM, RESERVE BALANCES WE TALKED ABOUT.
SO WE KNOW WE WOULD LIKE TO HIT 10% AND I WILL KIND OF BACK IN AND SEE WHERE WE ARE AND WE CAN TALK ABOUT AMOUNTS.
UM, MAYOR, YOU HAD COMMENTED I THINK A MEETING OR SO AGO ABOUT AS FAR AS OUR REVENUE TARGET, WE REALLY WOULD CONFIRM THAT IN APRIL ANYWAY, SO WE CAN MOVE IT AS WE ROCK ALONG AND TALK TO PEOPLE AND SEE WHERE EVERYBODY'S BUDGET ENDS UP.
IF, IF THAT WORKS FOR EVERYBODY.
I MEAN, I THINK, I THINK OUR GOAL LONG TERM IS THAT WHEN WE HAVE THIS FIRST MEETING IS THAT WE HAVE A PRELIMINARY NUMBER FOR EVERYTHING TO START WITH SO THAT WE CAN SAY HERE'S A NUMBER.
UM, AND OBVIOUSLY THIS IS ALL KIND OF A WORK IN PROGRESS.
UM, OUR TASK FORCE IS REPORTING TO THE COUNCIL TONIGHT, UM, WHICH I THINK WILL HELP US SET THE STAGE.
WHEN YOU SAY NUMBER, YOU MEAN LIKE THE LIST OF ASSUMPTIONS THAT WENT INTO THIS LIKE MODEL HERE, HERE, HERE IS OUR, HERE IS OUR, OUR ESTIMATE FOR SALES TAX FOR NEXT YEAR.
HERE IS OUR ESTIMATE FOR USE TAX.
HERE IS OUR ESTIMATE FOR EACH OF THE OTHER TAXES OUT THERE.
ALL OF THOSE PERMITS AND FEES SO THAT WE HAVE THOSE NUMBERS.
AND IF WE CAN START THERE WITH A DOLLAR AMOUNT IN THE FUTURE, IT MAKES THIS PROCESS EASIER.
BECAUSE LIKE, LIKE AJ SAID, LIKE KATHY HAS SAID, YOU KNOW, WE'RE HAVING TO BACK OUR WAY TO 'EM AS WE GET INTO THIS AT THIS POINT.
AND SO AS WE CONTINUE TO REFINE WHAT THIS PROCESS LOOKS LIKE LONG TERM, UM, I THINK WE CAN MAKE THE PROCESS FLOW A LOT BETTER.
I THINK ANOTHER KIND OF GUARDRAIL THAT WE SAW IN A FEW FEW CASES LAST YEAR WAS LIKE NEGATIVE BALANCES.
SO I KNOW THAT LIKE IN THE FIVE YEAR VIEW, THERE'S SOME NEGATIVE BALANCES THAT ARE SORT OF FOR PLANNING PURPOSES THAT WON'T REALLY HAPPEN.
BUT I THINK WE NEED TO MAKE SURE EVERY DEPARTMENT IS SOLVENT RIGHT.
AND WE'RE NOT BUDGET, WE'RE NOT LIKE OVER BUDGETING, UM, WHERE WE DON'T NEED TO.
SO THAT WOULD BE A GENERAL QUESTION I'D HAVE FOR THE COUNCIL.
DO YOU FIND VALUE IN LOOKING OUT FIVE YEARS AND DO YOU WANT TO CONTINUE THAT? I'M NOT TRYING TO TALK YOU INTO OR OUT OF IT ONE WAY, BUT I KNOW ENOUGH TO KNOW NEVER HAVING DONE IT HERE.
I KNOW ENOUGH TO KNOW THAT YOU GET TO YEAR FOUR AND FIVE.
THOSE ARE BASICALLY PLUG NUMBERS.
YOU'RE, YOU'RE SOME, SOME FORMULAIC, UH, INCREASE OR, OR DECREASE.
AND I NEVER, I MEAN, I THINK YOU STRIKED A BALANCE.
YOU WANT TO BE TRANSPARENT AND YOU WANT TO BE FORWARD LOOKING.
WE ALSO DON'T WANT TO UNNECESSARILY SOUND THE ALARM EITHER.
I, I PERSONALLY THINK WE NEED TO DO THAT.
AND I THINK IT WAS A STRENGTH THAT WAS MENTIONED IN THE AUDIT REPORT ACTUALLY, THAT WE DO THAT IF I REMEMBER RIGHT.
UM, OR SOMETHING THAT I READ SOMEWHERE ABOUT PRAISING HOW WE DO FINANCIALS, BUT, UH, I DON'T SEE A LOT OF VALUE IN YEAR FOUR AND FIVE.
UM, BUT I ALSO WANNA MAKE SURE THAT WHEN WE DO ANY TYPE OF THAT MODELING, LOOKING AT FORECASTING OUT IN THE FUTURE, THAT WE NEVER PUBLISH A NUMBER THAT'S NEGATIVE ON A FUND BALANCE BECAUSE WE CAN'T DO THAT.
WE, WE CANNOT OVERSPEND A FUND PERIOD, THEREFORE BOTTOM NUMBER IS ZERO.
THERE IS A, THERE IS A FLOOR THERE AND WHEN IT HITS ZERO, IT OUGHT TO BE AN ALARM ANYWAY, SO MM-HMM
LET'S JUST NOT PUT THE WRONG IMPRESSION OUT THERE THAT WE'RE GONNA GO SPEND MONEY THAT DOESN'T EXIST.
I AGREE THAT, YOU KNOW, PERCEPTION IS IMPORTANT AND WE DON'T WANNA NECESSARILY SOUND THE ALARM, BUT I THINK THE STATE HAS SPECIFIC WAYS WE HAVE TO REPORT THE BUDGET AND WE HAVE TO PROJECT.
SO I JUST WOULD WANNA MAKE SURE WITH THE CITY ATTORNEY THAT WE'RE FOLLOWING
[01:25:01]
WHAT THE STATE IS ASKING US TO DO.NO, WE CAN, WE CAN, I MEAN WE CAN MAKE ALL OF IT HAPPEN WITHOUT VIOLATING ANY, ANY STATUTE THAT'S OUT THERE.
UM, IT'S, IT'S A PRETTY STRAIGHTFORWARD PROCESS IF YOU DO IT.
YOU JUST HAVE TO UNDERSTAND THAT WHEN YOU SEE THE NEXT, WHEN YOU SEE A BALANCE STARTING TO GO TOWARDS ZERO, IT SHOULD BE AN ALARM IN ITSELF KNOWING THAT THE, THE FUND ITSELF CAN NEVER GO DEF GO INTO A DEFICIT SITUATION.
IT JUST LITERALLY HIT ZERO AND IT STOPS, WHICH MEANS YOU'RE SPENDING MONEY FROM SOMEWHERE ELSE.
AND WE CAN, WE CAN MAKE THAT WORK WITH WHATEVER TYPE OF FORECASTING WE'RE DOING.
THAT'S, I DON'T THINK THAT'S A BIG DEAL.
UM, ANYTHING ELSE THAT WOULD FALL UNDER THIS? LIKE JUST THE PROCESS.
YOU, WE MIGHT BE ABLE TO HIT EVERYTHING ON THE NEXT SLIDE ANYWAY, WHICH IS, UH, JUST DEFINITIONS OF YOUR EXPECTATIONS AND IDENTIFYING SPECIFIC ANALYSIS OR PRIORITIES.
SHOULD WE, ANYTHING ELSE YOU WANNA SAY HERE? YOU'LL SEE IT LATER, BUT THE MAINTAINING THE FORMAT FROM START TO FINISH IS REALLY IMPORTANT TO ME AND IT'S SOMETHING WE'VE BEEN WORKING HARD IN THIS BUDGET COMMITTEE ON WITH THE FORMAT OF THE DATA SO THAT IT'S CLEAR, YOU KNOW, COMPARABLE TO WHAT WENT THROUGH LAST YEAR AND THEN STAYS IN THAT FORMAT FOR THE BRIEFINGS.
AND THEN WHEN IT ALL ROLLS UP, IT STAYS IN A SIMILAR FORMAT.
I MEAN, IT CAN GO INTO THE, THE BOOK HOWEVER IT NEEDS TO GO RIGHT.
IN ACCOUNTING FORMAT, BUT THAT WE MAINTAIN THAT TRACEABILITY THROUGH, RIGHT.
LIKE WE TALKED ABOUT AND WE'LL TALK ABOUT IT LATER IN THE, IN THE BUDGET COMMITTEE OUT BRIEF.
BUT THAT WAS A, TO MAKE IT LIKE CLEAR AND UNDERSTANDABLE FOR THE PUBLIC, FOR AND FOR US, I THINK THAT'S IMPORTANT.
I I THINK THE ONE BIG COMMENT I HAVE IS AS, AS THE BUDGET REFORM COMMITTEE TASK FORCE, UM, HAS BEEN WORKING THROUGH THIS, I THINK ONE OF THE BIG THINGS IS, IS THAT, IS THAT TONIGHT WE'RE GONNA HEAR WHAT WE REALLY, I THINK THE EXPECTATION IS, IS THAT AS WE COME UP WITH THIS FORMAT OF WHAT IT LOOKS LIKE THAT YOUR STAFF HAS ALREADY CREATED FOR US, WE WANNA SEE THAT BY DEPARTMENT IN THE BUDGET BOOK AND AT LEAST IN THE TRANSITIONAL PERIOD IF WE NEED TO KIND OF PUT WHAT WE'VE DONE HISTORICALLY BEHIND IT, THERE'S NO BIG DEAL IN DOING IT TWO WAYS.
BUT, UM, WE JUST WANNA MAKE IT SO THAT WE ARE GETTING AS TO THAT POINT WHERE THE PUBLIC CAN INTERPRET WHAT WE'RE DOING IN A WAY THAT, AND WE KNOW WE'RE NOT THERE YET.
WE KNOW THERE'S STILL SOME ISSUES WE'VE GOTTA WORK THROUGH OVER THE NEXT YEAR, BUT, UM, WE JUST WANNA MAKE SURE THAT WHAT WE GET IN THAT BUDGET BOOK IS A STEP FORWARD.
SO UNLESS YOU WANT IT, I, WE DID MAKE A CLEAN BREAK AND WE'VE GONE TO THIS NEW SOFTWARE, SO WE DON'T HAVE IT SET UP LIKE WE DID LAST YEAR
SO THE THINGS THAT DID GO THROUGH BUDGET REFORM IS, IS HOW IT'S, WE PLAN TO PUBLISH IT.
SO UNLESS YOU WANT US TO GO BACK? NO.
I'M GONNA MOVE ON TO THE NEXT ONE.
SO THESE ARE BUDGET REQUESTS FOR MEMBERS OF THE CITY COUNCIL TO BE INCLUDED FOR CONSIDERATION AT FUTURE MEETINGS, BUT THIS IS REALLY JUST SOLIDIFIED NOW WHAT A LOT OF WHAT WE JUST TALKED ABOUT.
BUT, UM, SOME OF THE THINGS I HEARD ARE PERIMETERS WOULD BE IF WE CAN START WITH A ZERO, YOU KNOW, REVENUE, WELL THE, THE PERCENTAGES THAT WE MENTIONED, 10% GOAL OF UNASSIGNED GENERAL FUND.
SO JUST TYPES OF THINGS LIKE THAT.
UM, JUST BACK UP, THINK OF THAT 10% THAT'S GONNA BE DIFFICULT TO ACHIEVE, SO, RIGHT.
IT'S A GOAL FOR, IT'S NOT FOR THIS NEXT YEAR.
I THINK THAT'S A LONG TERM GOAL.
AND DON'T TRY TO GET TO 10 NEXT YEAR IF YOU GUYS ARE OKAY WAY, WE'LL DO IT.
PROBABLY WHAT WE'LL DO IS WE'LL START WITH SOME OF THESE REVENUE TARGETS, TAKE THE BUDGETS THAT WE HAVE BUILT TO SEE WHERE WE ARE, UM, AND THEN SEE WHAT EVERYBODY CAN TOLERATE THIS YEAR FOR THAT.
BUT, UM, WE'LL TRY TO GET IT AS HIGH AS WE CAN.
IS THERE ANYTHING ELSE IN PERIMETERS THAT, LIKE YOU WANT US TO STAY WITHIN THIS BOUNDARY? I MEAN, I THINK, I THINK WE'RE GOING INTO THIS WITH A GOOD, WITH A GOOD VISION AND, AND GAME PLAN AND WE'VE JUST GOTTA, WE'RE GONNA HAVE TO WORK OUR WAY THROUGH IT.
[01:30:01]
UM, ANY OTHER EXPECTATIONS? I FEEL LIKE WE DID REALLY WELL TODAY TALKING ABOUT BUDGET WORKSHOPS AND HOW WE ARE GONNA GET THROUGH THAT AND HITTING TIMELINES AND IT'S NICE TO HAVE THESE IN PLACE SO THAT WE SHOULDN'T BE RUSHED.I DON'T THINK THIS YEAR WE'VE GIVEN OURSELVES SOME TIME.
SO, UM, AND, AND WE HAVE A FULL COUNCIL THIS TIME TO GO THROUGH THE WHOLE PROCESS.
SO, UM, IS THERE ANYTHING ELSE YOU CAN THINK OF THAT'S AN EXPECTATION IN THE MARCH 9TH? REMIND ME, UM, IN THE MARCH 9TH MEETING, WILL THAT BE, WILL THERE BE LIKE A SUMMARY OF WHERE WE ENDED UP OR WHERE WE STAND TODAY? THAT'S KIND OF THE JUMP OFF POINT FOR WHERE WE'RE GONNA GO.
WE, WE CAN, MY EXPECTATION, MY EXPECTATION OF THE FIRST AT LEAST THREE WOULD BE JUST DEFINITELY ALL THE DIFFERENT DIRECTORS GIVING THEIR FULL BUDGET.
BUT WE COULD CERTAINLY DO A KICKOFF.
IT MIGHT BE GOOD TO JUST HAVE ONE SLIDE KIND OF AT THE CITY LEVEL TO SAY, OKAY.
AND THE MAJORITY OF WHAT WE'RE TALKING ABOUT HERE IS GENERAL FUND
BUT SPECIFICALLY AROUND, UM, RESERVES, YOU KNOW, SO THAT ACTUALLY IS A GOOD QUESTION 'CAUSE THAT IF IT'S GENERAL FUND OR CITYWIDE, WHATEVER WE DO, BUT WE COULD ALSO INCORPORATE THAT WITH EVERY BUDGETS DEPART, EVERY DEPARTMENT'S BUDGET THAT HAS A, A FUND BALANCE, YOU KNOW, WHERE WE'RE STARTING OFF.
AND I THINK THAT'D BE GOOD TO DO, SHOW IT THAT WAY.
I CAN'T THINK OF ANYTHING ELSE.
APPRECIATE YOU, UH, SOLICITING INPUT EARLY ON THIS.
UM, IT'S BEEN, IT'S BEEN A VERY PRODUCTIVE YEAR.
A LOT OF CHANGE AND, UM, I THINK WHEN WE GET THROUGH IT, HOPEFULLY PEOPLE WILL UNDERSTAND BETTER AND, UM, THE INTERACTION ALONE WITH THIS NEW SOFTWARE IS GONNA BE REALLY GOOD ONCE WE GET IT ON THE, ON THE WEBSITE AND PEOPLE CAN LITERALLY DRILL DOWN AND SEE EVERYTHING.
SO, UM, ANY OTHER SPECIFIC THINGS OR ANYTHING ELSE YOU CAN THINK OF? NO, I THINK WE'RE GOOD.
ANY QUESTIONS, REMARKS, COMMENTS? AJ, YOU GOOD? NO, I, I MEAN I THINK THIS IS NO, UH, GREAT PREDICTION.
IT'S, WE HAVE SOME WORK AHEAD OF US IF WE KNOW WE'RE GONNA DEAL WITH 4% ON THE PERSONNEL SIDE.
WE'RE GONNA DEAL WITH A FLAT SALES TAX NUMBER, UH, AND, AND NOT LARGE INCREASES IN THE OTHER REVENUE NUMBERS.
WE'RE, WE'LL HAVE SOME WORK CUT OUT FOR US FOR SURE, BUT WE'LL BE READY TO START, UH, ON THE NINTH.
AND I MAY EVEN ASK SOME OTHER KINDS OF QUESTIONS JUST TO MAKE SURE THOSE, UH, THOSE PRESENTATIONS ARE AS FORMATIVE AND AS USEFUL, YOU KNOW, UH, AS POSSIBLE.
BUT NO, WE, I THINK YOU'VE GIVEN US GOOD DIRECTION THAT WE CAN, WE CAN WORK WITH AND ACT UPON AND WE'LL START ON THE NINTH.
ANY OTHER COMMENTS, THEN WE'RE ADJOURNED.