[00:00:04] >> START. READY? >> PLEASE. [A. CALL MEETING TO ORDER] >> ALL RIGHT. GOOD EVENING. I'D LIKE TO CALL TO ORDER THE REGULAR MEETING OF THE BUDGET AND FINANCE COMMISSION ON FEBRUARY 13, 2025, AT 6:30 PM. IF WE CAN START WITH A ROLL CALL, PLEASE. >> COMMISSIONER MARIN? >> HERE. >> COMMISSIONER JESTE? >> HERE. >> COMMISSIONER SHERBIN? >> HERE. >> COMMISSIONER CASTLE IS ABSENT. COMMISSIONER WOODHAM? >> HERE. >> COMMISSIONER SAMPLES. >> HERE. >> CHAIR ALLEN. >> HERE. >> THANK YOU. >> NOW, EVERYONE, PLEASE RAISE FOR THE PLEDGE OF ALLEGIANCE TO OUR FLAG. READY? BEGIN. ALLEGIANCE] THANK YOU. NEXT ITEM IS ITEM D, APPROVAL OF AGENDA. [D. APPROVE ORDER OF AGENDA] CAN WE MOVE ITEM J1 IN FRONT OF I1 SO THAT OUR TREASURER DOESN'T HAVE TO SIT AND HEAR OTHER ITEMS? >> SECOND >> DO WE HAVE CONSENSUS? IS CONSENSUS OKAY OR DO WE NEED A ROLL CALL? >> YOU COULD DO A MOTION AND THEN PRESENT A SECOND. >> CAN WE HAVE A MOTION TO MOVE J1 IN FRONT OF I1 AND THEN APPROVE THE ORDER OF THE AGENDA, PLEASE? > SO MOVED. >> SECOND. >> ROLL CALL, PLEASE. >> ONE SECOND. SORRY. COMMISSIONER MARIN. >> AYE. >> COMMISSIONER JESTE. > AYE. >> COMMISSIONER SHERBIN? >> AYE. >> COMMISSIONER CASTLE IS ABSENT. COMMISSIONER WOODHAM. >> AYE. >> COMMISSIONER SAMPLES? >> AYE. >> CHAIR ALLEN. >> AYE. NEXT ITEM, BLUE FOLDER ITEMS. [E. BLUE FOLDER ITEMS - ADDITIONAL BACK UP MATERIALS] DO WE HAVE ANY BLUE FOLDER ITEMS? >> YES, WE DO. IT COMES FROM THE CITY TREASURER'S REPORT. I HAD E-MAILED IT OUT TO THE COMMISSIONERS, I THINK ON TUESDAY OR WEDNESDAY. >> DO WE NEED TO APPROVE ON THAT? >> MOVE TO RECEIVE AND FILE THE BLUE FOLDER ITEMS. >> SECOND. >> YES. IT'LL BE PART OF THEIR REPORT. >> NEXT ITEM IS ITEM F, CONSENT CALENDAR. [F. CONSENT CALENDAR] WE HAVE THE POSTING OF THE AFFIDAVIT AND THE MINUTES. REGARDING THE MINUTES, SO THESE ARE FROM ALMOST A YEAR AGO, CORRECT? >> YES. SORRY TO CUT YOU OFF. >> YES. I HAVE A SOLUTION FOR US BECAUSE IT'S NOT REALISTIC FOR US TO REMEMBER BACK A YEAR AGO AND APPROVE SOMETHING. MOVING FORWARD, CAN YOU TRY TO CATCH UP IN A WAY THAT NEXT TIME YOU ALSO ADD THE PREVIOUS MEETINGS' MINUTES? >> YES. >> WE'LL HAVE TWO MINUTES APPROVED. IT'LL BE THE APRIL MINUTES, AND IT'LL BE THE FEBRUARY MINUTES. DOES THAT MAKE SENSE? >> YES. THE MINUTES THAT YOU'RE APPROVING FOR THAT MARCH MEETING WERE FROM A SPECIAL MEETING. THOSE WERE SOMETHING THAT MUST HAVE FALLEN THROUGH THE CRACKS AS FAR AS GETTING APPROVAL. I BELIEVE THERE IS ONE MAY SPECIAL MEETING THAT WE'RE WAITING FOR THE CITY CLERK'S DEPARTMENT TO COMPLETE AS FAR AS MINUTES, BUT THEN YOU GUYS SHOULD BE CAUGHT UP BY THEN. I RECEIVED THE DECEMBER MINUTES, SO I THINK THOSE ONES ARE ON THE MEETING TONIGHT OR FOR NEXT TIME, SORRY, FOR NEXT TIME THE DECEMBER ONES ARE. WE'RE CATCHING UP WITH THE CITY CLERK'S DEPARTMENT ON THAT AS FAR AS MINUTES. >> NEXT TIME WE'LL HAVE DECEMBER, SO WE WILL NOT HAVE JANUARY OR FEBRUARY? >> FOR THE NEXT MEETING, WE COULD POSSIBLY HAVE JANUARY. WE'RE JUST WAITING WITH THE CITY CLERK'S OFFICE TO FINISH THOSE. >> THANK YOU. DO WE HAVE A MOTION TO APPROVE THE MINUTE, THE CONSENT CALENDAR? YES, CONSENT CALENDAR, PLEASE? >> SO MOVED. >> SECOND. >> THANK YOU. ROLL CALL, PLEASE. >> COMMISSIONER MARIN? >> AYE. >> COMMISSIONER JESTE? >> AYE. >> COMMISSIONER SHERBIN? >> AYE. >> COMMISSIONER CASTLE IS ABSENT. COMMISSIONER WOODHAM. >> AYE. >> COMMISSIONER SAMPLES? >> AYE. >> CHAIR ALLEN? >> AYE. MOTION PASSES. THANK YOU. ARE THERE ANY EXCLUDED CONSENT CALENDAR ITEM? WE JUST DID THAT. DO WE HAVE ANY PUBLIC PARTICIPATION ON NON-AGENDA ITEMS? [H. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS] >> WE DO HAVE A VISITOR ON ZOOM. GREG IS HERE. I DIDN'T GET ANY ITEMS FROM THE AUDIENCE, BUT WE DID ALSO GET A E-MAIL. [00:05:03] I CAN READ IT OUT TO THE COMMISSION. DO YOU MIND? >> GO AHEAD. >> I RESPECTFULLY REQUEST THE STATUS FROM THE BUDGET AND FINANCE COMMISSION OF REPLACING THE VETERANS MEMORIAL PLAQUES THAT WERE STOLEN A YEAR AGO. THE CITY NEEDS TO FIND THE FUNDS TO REPLACE THESE PLAQUES AND TO HONOR OUR VETERANS. THIS SHOULD BE PUT ON THE AGENDA FOR DISCUSSION AND ACTION AS A HIGH PRIORITY, AND THAT'S FROM KATHY MCLOYD. THAT WAS THE E-MAIL THAT WAS SENT. >> THANK YOU. CAN WE HAVE THAT ON THE AGENDA NEXT TIME, PLEASE? >> YES. >> I JUST WANTED TO ADD ONE ITEM. THIS IS THE SUBJECT OF A BUDGET RESPONSE REPORT THAT WE'LL PROVIDE TO CITY COUNCIL ALONG WITH THE MEDIA PRESENTATION NEXT TUESDAY, ON THE 18TH, SO THAT WE CAN ADD IT TO THE AGENDA AND THAT MAY PROVIDE THE RESPONSE THIS PERSON IS LOOKING FOR. >> WE'LL HAVE IT ON THE AGENDA NEXT MONTH. THANK YOU. >> SORRY. WE NEED TO CHECK IN TO SEE IF GREG NEEDS TO HAVE A COMMENT THAT'S OUTSIDE OF THE AGENDA. >> ALLEN, GREG IS FROM OUR SIDE. >> I'M SORRY. >> HE'S FROM OUR SIDE. >> SORRY. >> GREG, CAN YOU HEAR US? I JUST WANT TO MAKE SURE. >> I CAN HEAR YOU. CAN YOU HEAR ME? >> PERFECT. OKAY. >> I'M SORRY. >> NO WORRIES AT ALL. >> DO YOU WANT TO ADD ANYTHING, GREG? >> NO. NOT UNTIL IT'S MY TURN. >> DO WE HAVE ANY OTHER PUBLIC PARTICIPATION FROM THE AUDIENCE? LOOKS LIKE A NO. WE WILL CONTINUE WITH THE ITEM J1, PLEASE. [J. ITEMS FOR DISCUSSION PRIOR TO ACTION] FROM THE CITY TREASURER, EUGENE SOLOMON. >> THANK YOU, CHAIR ALLEN. EUGENE SOLOMON, REDONDO BEACH CITY TREASURER. WE ARE HERE TONIGHT FOR OUR REGULARLY SCHEDULED PRESENTATION OF THE QUARTERLY REPORT. THIS IS FOR THE FISCAL YEAR '24 - '25 QUARTER TWO ENDING DECEMBER 31ST OF 2024. TONIGHT WE HAVE WITH US, OUR CONSULTANT FROM METER GROUP, GREG, WHO WILL BE AVAILABLE FOR DISCUSSION AS WELL. OUR DEPUTY CITY TREASURER, NILESH MEHTA, WILL WALK YOU THROUGH THE PRESENTATION. I'D LIKE TO HAND IT OFF TO NILESH AT THIS MOMENT. >> BECAUSE WE HAVE A LOT ON OUR AGENDA, WILL IT BE POSSIBLE TO SUMMARIZE AS YOU CAN? >> YES. THAT'S THE GOAL. >> THANK YOU. >> GOOD EVENING, EVERYONE. TODAY, WE'RE GOING TO BE TALKING ABOUT THE QUARTERLY ADMIN REPORT, WHICH IS INCLUDED IN YOUR PACKET, WHICH INCLUDES THE TREASURER'S PORTFOLIO SUMMARY, REPORTING GUIDELINES, REPORT BY METER INVESTMENT, WHICH HAS THE PORTFOLIO SUMMARY, INVESTMENT POLICY COMPLIANCE, INVESTMENT ACTIVITY REPORT, AS WELL AS THE ECONOMIC AND MARKET UPDATE. ALONG WITH OUR PRESENTATION, WE HAVE THE BLUE FOLDER ITEM, WHICH IS THE ECONOMIC UPDATE PROVIDED BY GREG BALLS. HE'S ON ZOOM RIGHT NOW. INVESTMENT POWERPOINT PRESENTATION IS GOING TO INCLUDE THE OBJECTIVES AND GUIDELINES, POLICY COMPLIANCE, THE QUARTERLY PERFORMANCE, HISTORICAL BOOK VALUE, CASH FLOW ANALYSIS, MONTH AND PORTFOLIO YIELD, MATURITY DISTRIBUTION, TRADING ACTIVITY, AND FINALLY, THE FISCAL IMPACT. KEY INVESTMENT OBJECTIVES. WE'VE BEEN THROUGH THIS, BUT I'LL JUST GO OVER VERY QUICKLY. SAFETY, LIQUIDITY, AND YIELD, IN THAT ORDER. THE GOAL IS TO PROTECT THE PRINCIPLE, PROVIDE NECESSARY LIQUIDITY TO COVER BOTH ONGOING AND UNEXPECTED CASH NEEDS, AND FINALLY MAXIMIZE EARNINGS, RECOGNIZING NEED FOR SAFETY AND LIQUIDITY AND SUBJECT TO RESTRICTIONS SPECIFIED BY STATE STATUTES AND LOCAL GOVERNING BODY. ALWAYS REMEMBER WHOSE MONEY IT IS AND ACT ACCORDING IN A RESPONSIBLE STEWARDSHIP CAPACITY. INVESTMENT MANAGER'S OBJECTIVE IS TO EARN A REASONABLE RATE OF RETURN ON THE CITY'S INVESTMENT WHILE PRESERVING CAPITAL IN THE OVERALL PORTFOLIO. IT SHOULD NEVER BE AN INVESTMENT MANAGER'S GOAL TO EARN MAXIMUM RETURNS ON THE CITY'S PORTFOLIO AS THIS WOULD EXPOSE THE CITY TO AN UNACCEPTABLE LEVEL OF RISK. FAILURES IN PUBLIC INVESTING OCCUR WHEN POLICIES ARE NOT CLEAR, THEY'RE INAPPROPRIATE, POLICIES ARE NOT FOLLOWED AND OVERSIGHT IS INADEQUATE. QUESTIONS TO ASK IS, DO YOU REVIEW THE INVESTMENT POLICY? DO YOU UNDERSTAND THE INVESTMENT PROGRAM? DO YOU RECEIVE AND REVIEW PERIODIC INVESTMENT REPORTS? ARE THEY CLEAR, CONCISE, AND ARE THEY READABLE? FINALLY, DO YOU UNDERSTAND THEM FULLY? THIS SLIDE GOES OVER THE POLICY COMPLIANCE FOR THE PORTFOLIO. AS YOU CAN SEE ON THE RIGHT HAND COLUMN, WE WERE IN COMPLIANCE WITH THE INVESTMENT POLICY. BASED ON THE DECEMBER 31ST REPORT, [00:10:05] WE HAD ABOUT 42% OF OUR PORTFOLIO AND US TREASURIES INVESTED, US FEDERAL AGENCIES, 42% AS WELL. LAIF WAS JUST UNDER 0.15% WITH ABOUT 100,000. MONEY MARKET FUNDS WAS ABOUT 125,000 AND CORPORATE WAS ABOUT 16.5% AT 12.5 MILLION. OUR OVERALL PORTFOLIO WAS JUST ABOUT 76 MILLION, WEIGHTED AVERAGE MATURITY, 1.46, AND THE LIQUIDITY OF THE PORTFOLIO, WHICH THE METRIC IS 25% UNDER 365 DAYS. IT WAS 37.7%. WE WERE IN COMPLIANCE WITH THE INVESTMENT POLICY. >> MAY I INTERJECT? >> SURE. >> FROM THE PREVIOUS SLIDE, WOULD YOU BE ABLE TO GIVE US UPDATE ON CAMP? >> YES. AFTER GETTING IT APPROVED WITH CITY COUNCIL LAST QUARTER, WE OPENED THE ACCOUNT WITH CAMP, AND AT THE END OF DECEMBER, WE RECEIVED ABOUT $20 MILLION IN PROPERTY TAXES. IT DOESN'T REFLECT ON THIS BECAUSE THIS CUT OFF AT THE END OF DECEMBER, BUT AS OF JANUARY WE INVESTED A SIGNIFICANT PORTION INTO CAMP, WHICH WE WILL TALK ABOUT IN GREATER DETAIL AT THE NEXT PRESENTATION. >> THANK YOU. >> YEAH. >> THANK YOU. >> SURE. THIS IS A QUARTER BY QUARTER COMPARISON FISCAL '24 - '25 FIRST QUARTER VERSUS SECOND QUARTER. THE LAIF YIELD YOU'LL SEE RIGHT AROUND 4.5%. WE HAD BUDGETED 1.5 MILLION TO GO TOWARDS THE GENERAL FUND. AS OF THE END OF THE SECOND QUARTER, WE'RE CURRENTLY AT ALMOST 650,000. >> QUESTION ON THAT CHART. THERE'S A GREATER DECLINE FROM FIRST QUARTER TO SECOND QUARTER THIS YEAR THAN LAST YEAR. WHAT ACCOUNTS FOR THAT? DO WE HAVE AN UNEXPECTED EXPENDITURE OR? >> YES, IT'S A COMBINATION OF TWO THINGS. ONE IS, THERE HAVE BEEN INCREASES IN EXPENDITURE, ALONG WITH THE 20 MILLION THAT I TALKED ABOUT THAT CAME FROM PROPERTY TAXES. BECAUSE IT CAME AT THE END OF THE QUARTER, IT WASN'T ACCOUNTED FOR IN THIS CHART. THAT'S WHY YOU'LL SEE CASH IN BANKS AT 25 MILLION. IT WAS SITTING IN THE CHECKING ACCOUNT RIGHT AT THE END. JUST COINCIDENTALLY, WHEN THIS REPORT WAS COMPLETED, IT WAS NOT AVAILABLE TO BE INVESTED. >> THANKS. >> YEAH. THIS IS A QUARTER BY QUARTER COMPARISON OF FISCAL YEAR '23 AND '24 AND '22 AND '23 AND '21 AND '22. KEY THINGS TO LOOK AT IS THE INTEREST EARNED BACK THEN VERSUS THE INTEREST EARNED NOW, AND THE RATES AS THEY COMPARE TO THE YIELD THAT WE'RE CURRENTLY GETTING. CASH FLOW ANALYSIS THAT WE PERFORM FOR THE CITY, WE HAVE MET THE CASH FLOW NEEDS OF THE CITY FOR THE QUARTER AND EXPECT TO MEET THE EXPENDITURE REQUIREMENTS FOR THE UPCOMING PERIOD. SECTOR ALLOCATION, AS I MENTIONED, THIS IS OBVIOUSLY AS OF THE END OF DECEMBER, AND IT'S GOING TO SIGNIFICANTLY CHANGE BECAUSE OUR LGIP, WHICH IS OUR LAIF, CAMP, MONEY MARKET FUND, HAS A SIGNIFICANT INCREASE IN VALUE AS OF JANUARY. MATURITY DISTRIBUTION OF OUR PORTFOLIO. INVESTMENTS THAT ARE INVESTED BETWEEN 0-1 YEAR, 38%, ONE AND TWO YEARS, ALMOST 33%, 2- 3 YEARS ABOUT 22%, AND 3 - 4 YEARS ABOUT 6%. AS I MENTIONED, FISCAL IMPACT, SO INTEREST EARNED YEAR TO DATE, 1,070,841.28. THE GENERAL FUND CONTRIBUTION IS ABOUT APPROXIMATELY 60%, 642,000 WAS CONTRIBUTED TO THE GENERAL FUND THROUGH INVESTMENT ACTIVITY. AS I MENTIONED, BUDGETED CONTRIBUTION OF INTEREST TO THE GENERAL FUND FOR THE ENTIRE FISCAL YEAR IS 1.5 MILLION. GREG IS ON ZOOM. LET ME CHANGE TO THE POWERPOINT FOR HIM SO HE CAN GO OVER THAT. GREG, CAN YOU HEAR US? >> I CAN HEAR YOU. [00:15:04] >> ARE YOU ABLE TO SEE THE SCREEN? >> I'M NOT ABLE TO SEE THE PRESENTATION THAT WELL. >> I'M ON THE SECOND SLIDE, 2024 YEAR IN REVIEW. >> I'M GOING TO BLOW IT UP ON MY SCREEN HERE ON THE SECOND SLIDE. JUST TO COVER THE MAIN POINTS TO THE YEAR IN REVIEW. ON THE UPPER LEFT HAND SIDE, THE BIG THING THAT OCCURRED WAS THE FEDERAL RESERVE DID CUT THE FED FUNDS RATE FROM 5.5% TO 4.5%, SO THAT'S EQUIVALENT OF A 1% CUT. AS WE LOOK IN THE MIDDLE THERE, THE US TREASURY YIELD CURVE UNINVERTED. FOR ABOUT 766 DAYS, THE YIELD CURVE WAS INVERTED WHERE WE CAN EARN MORE IN A THREE MONTH VERSUS A FIVE YEAR, FOR EXAMPLE, AND NOW THAT HAS CHANGED TO THE POINT WHERE WE CAN EARN MORE ON A LONGER DATED SECURITY LIKE A FIVE YEAR THAN ON A THREE MONTH NOW. THE YIELD CURVE DID UNINVERT. ALTHOUGH THERE ARE CERTAIN PARTS WITHIN THE YIELD CURVE THERE IS SOME INVERSION, BUT SOME OF THAT HAS GONE AWAY THE LAST COUPLE OF DAYS. THE FEDERAL DEBT TOP 36 TRILLION THAT IS AN ISSUE A LOT OF PEOPLE DO LOOK AT. THE UNEMPLOYMENT RATE HAS TICKED UP, EXCUSE ME, TO 4.2%. >> THEN THE CPI WHICH CAME OUT YESTERDAY ACTUALLY. THIS HAS CHANGED BUT IT DROPPED FROM 3.4% TO 2.7% IN NOVEMBER, BUT IT HAS TICKED UP A LITTLE BIT SINCE THEN IF YOU GO TO THE NEXT PAGE, PAGE 3 OR SLIDE 3 THERE. I'M GOING TO GO OVER THIS TOO MUCH BUT JUST AS A REMINDER, WE USE THIS MODEL CALLED THE FIGEY MODEL. THIS IS REALLY WHAT DRIVES THE PERFORMANCE FOR THE CITY'S PORTFOLIO BY BUY AND LARGE. OBVIOUSLY, A LOT OF OTHER FACTORS. THESE ARE SOME OF THE MAIN FACTORS, BUT THE FED INFLATION, GROWTH, EMPLOYMENT, THEN IN YIELDS. LET'S GO OVER EACH OF THOSE. WE CAN SKIP TO SLIDE 5. LET'S TALK ABOUT THE FED FUNDS. THIS IS THE FED FUNDS LOOKING OUT TO DECEMBER OF 2025 AND WHERE THE MARKET EXPECTS THE FED FUNDS TO BE. WE'RE TRACKING WHAT THE FORECAST WAS, AND NOT NECESSARILY THE FORECAST, THIS IS REAL MONEY. AS YOU GO TO JANUARY 2024, FOR EXAMPLE, THE MARKET WAS EXPECTING A MUCH MORE AGGRESSIVE FED AS OPPOSED TO YESTERDAY ACTUALLY, WHERE CPI CAME OUT RATHER HOT AND SO THE MARKET WENT FROM EXPECTING TWO CUTS THIS YEAR TO ALMOST ONLY ONE CUT. PRIOR TO YESTERDAY'S NUMBER, THEY WERE EXPECTING A CUT IN JUNE AND DECEMBER, AND NOW THEY'RE LOOKING FOR JUST ONE CUT IN OCTOBER OR DECEMBER. WE'LL SEE HOW THAT ENDS OUT. GO TO THE NEXT SLIDE THERE. THIS IS INFLATION. SPEAKING OF CPI, CPI CAME IN HOTTER THAN EXPECTED YESTERDAY TO THE POINT WHERE IT TICKED UP FROM, SEE IT WAS 2.9 TO 3%. WE WERE EXPECTING IT TO MOVE SIDEWAYS OR MAYBE TREND A LITTLE BIT LOWER AT THE BEGINNING OF THE YEAR AND SO THAT WAS A LITTLE BIT OF AN UPWARD SURPRISE. THAT SPOOKED THE MARKET. MARKET WENT DOWN AS FAR AS THE STOCK MARKET AND THE YIELDS WENT UP QUITE A BIT ON THAT NEWS. BUT WE DO THINK THAT BETWEEN NOW AND APRIL, WE MIGHT SEE A FEW NUMBERS WHERE IT PUTS DOWNWARD PRESSURE ON INFLATION. BUT THEN TOWARDS THE MIDDLE OF THE YEAR, WE COULD SEE INFLATION TREND HIGHER. I THINK THE KEY HERE IS THAT INFLATION, WE DON'T THINK IS GOING TO GET TO THE 2% TARGET THAT THE FED HAS. RATHER, IT'S GOING TO REMAIN ELEVATED, PROBABLY 2.5 FOR HIGHER RANGE THIS YEAR, WHICH MEANS THAT THE FED DOESN'T HAVE TO BE AS AGGRESSIVE AS THEY OTHERWISE, MIGHT IF INFLATION WAS UNDER CONTROL IN THEIR EYES. IF YOU GO TO PAGE 7 AS FAR AS GROWTH. GROWTH FOR Q4, THIS NUMBER CAME OUT A WEEK OR TWO AGO AT 2.3% FOR Q4. WHEN YOU LOOK AT FORECAST A YEAR AGO, THE FORECAST WAS FOR GDP TO BE IN A ONE HANDLE. THE LAST THREE QUARTERS OF 2024 ACTUALLY WAS MUCH HIGHER THAN WAS FORECAST AT THE BEGINNING OF THE YEAR AND SO THE THE ECONOMY REMAINS RESILIENT, CONSUMER SPENDING REMAINS SURPRISINGLY RESILIENT AS WELL. I TOLD YOU THAT THE BLOOMBERG FORECAST OR THE FORECASTS WERE WRONG LAST YEAR, [00:20:04] AND HERE I'M THE BEGINNING OF THIS YEAR SHOWING YOU WHERE THE FORECASTS ARE GOING TO BE THERE AT 2.6 FOR Q1 AND THEN DOWN 2% BY Q4. ONE OF THOSE THINGS IS TAKE A GRAIN OF SALT RIGHT NOW BECAUSE THERE'S A LOT THAT COULD HAPPEN BETWEEN NOW AND YEAR, ESPECIALLY WITH WHAT'S HAPPENING WITH THE TRUMP ADMINISTRATION. PAGE 8, THIS IS THE EMPLOYMENT PICTURE. WE'RE LOOKING AT THIS IN THE VIEW OR IN THE LENS OF THE INITIAL CLAIMS, CONTINUING CLAIMS. WHEN SOMEONE LOSES THEIR JOB, THEY FILE THAT INITIAL CLAIM. THESE NUMBERS BOTH ARE STILL PRETTY LOW. WHAT WE WOULD BE LOOKING FOR IF THERE'S ANY WARNING WAS FOR INITIAL CLAIMS TO JUST HOPPED PROBABLY ABOVE 350,000. THEN YOUR CONTINUING CLAIMS OVER TWO MILLION, BUT THEY STILL REMAIN PRETTY LOW AND THEY HAVEN'T ISSUED ANY WARNING SIGN QUITE YET. AGAIN, THE ECONOMY REMAINS RESILIENT. PAGE 9, TURNING OVER TO YIELDS. THIS IS AN INTERESTING GRAPH TO ME AT LEAST BEING AN ECONOMIC NERD, BUT JUST LOOKING AT THE YIELD CURVE CHANGE, AND THE FED REALLY DRIVES THE FRONT END OF THE YIELD CURVE. THEN INVESTORS DRIVE MORE OF THE LONGER PART OF THE CURVE AND THEIR OUTLOOK ON LONG TERM GROWTH AND LONG TERM INFLATION. AS WE SEE IN THE ORANGE, THAT'S THE YIELD CURVE AT THE END OF THE LAST FISCAL YEAR. THEN WHERE WE SEE WHERE WE ARE AS OF THE 12TH. AS OF YESTERDAY, JUST NOTICE HOW THE FRONT END OF THE CURVE OF THE FED CUT 1% PUSHED THAT FRONT END DOWN. HOWEVER, THE LONGER PART OF THE CURVE ACTUALLY WENT HIGHER, AND THE REASON BEING IS INVESTORS EITHER THINK THAT GROWTH IS GOING TO BE STRONGER MAYBE FOR LONGER OR THAT INFLATION IS GOING TO REMAIN ELEVATED. THESE ARE YIELDS GOING BACK TO 2004, AND WHEN I SAY YIELDS, I MEAN THE TWO YEAR IN THE FED FUNDS RATE. NOW, WE BELIEVE THAT THE TWO-YEAR AND THE 10-YEAR PEAKED BACK IN OCTOBER OF 2023. ALTHOUGH YIELDS HAVE COME DOWN QUITE A BIT, THEY STILL REMAIN QUITE HIGH WHEN WE LOOK AT THE AVERAGE TWO-YEAR GOING BACK TWO DECADES. THE AVERAGE YIELD GOING BACK TWO DECADES FOR THE TWO YEARS IS 1.9%. LOOK AT WHERE WE ARE NOW AT 4.2%. EVEN THOUGH YIELDS HAVE COME DOWN THE LAST YEAR AND A HALF OR SO, OR ALMOST TWO YEARS, YIELDS STILL REMAIN ELEVATED. AS THE CITY IS ABLE TO INVEST OUT THE CURVE A LITTLE BIT, THERE ARE STILL OPPORTUNITIES IN OUR VIEW TO LOCK IN SOME OF THE HIGHEST YIELDS WE'VE SEEN IN TWO DECADES. THAT'S ALL WE HAVE. OUR VIEW WITH RESPECT TO YIELDS, I WOULD SAY IS WE DO EXPECT THE FED TO CUT MAYBE ONE OR TWO MORE TIMES. THERE'S POTENTIAL THAT THEY DON'T CUT AT ALL. IT JUST DEPENDS ON INFLATION AND OTHER FACTORS, OBVIOUSLY. BUT WE DO BELIEVE THAT LONGER DATA YIELDS, I'LL SAY WITHIN OUR SPACE, 3-5 YEARS ARE GOING TO MOVE SIDEWAYS, AND WHEN THEY MOVE SIDEWAYS, IT'S GOING TO BE WITHIN RATHER WIDE BAND. ON THE FIVE YEAR, FOR EXAMPLE, THE BAND COULD BE ANYWHERE FROM 4.8% ON THE HIGH END TO 3.8% ON THE LOW END. THAT'S OUR VIEW THROUGH MID THIS YEAR TO MAYBE EVEN TO THE END OF THIS YEAR. IT JUST DEPENDS ON WHAT HAPPENS WITH TARIFFS AND DEREGULATION, WHAT HAVE YOU. ANY QUESTIONS FOR ME? >> NOW, BASED ON THIS, WHAT IS YOUR PURCHASE STRATEGY? >> EUGENE, I KNOW YOU WANT TO JUMP IN. IT REALLY DEPENDS ON THE CASH NEEDS OF THE CITY, AND SO WE DO KNOW THAT THERE'S MORE EXPENDITURES COMING UP FOR THE CITY. BUT WHERE WE CAN, WE STILL. >> I'M SORRY TO INTERJECT. WHAT I MEANT IS GIVEN WE MINUS THE LIQUID THAT WE NEED TO PAY EXPENSES. WHEN YOU HAVE CASH OR THAT YOU HAVE CASH, WHAT IS THE STRATEGY? HOW ARE YOU GOING TO MAKE PURCHASES? >> WHAT WE'VE TALKED ABOUT IS WHERE WE HAVE OPPORTUNITY. WE'RE LOOKING TO TAKE MORE DURATION TO TAKE ADVANTAGE OF SOME OF THE HIGHER YIELDS WITH THE SAFETY THAT WE HAVE NOW. WE HAVEN'T HAD THAT OPPORTUNITY. [00:25:02] >> WHEN YOU SAY OPPORTUNITY MEANING, YOU DO NOT HAVE ANY CASH TO INVEST NOW? >> OUR ASSETS UNDER MANAGEMENT HAVE BEEN REDUCED BY SOME THINGS LIKE CAPITAL IMPROVEMENT PROJECTS GETTING PAID OUT. >> LET ME ASK IT THIS WAY, HOW MUCH DO YOU HAVE CURRENTLY TO INVEST? BECAUSE IF YOU DON'T, THEN I'LL WITHDRAW THE QUESTION. >> CURRENTLY, OUR ASSETS UNDER MANAGEMENT WHERE AT THE END OF THE QUARTER, WERE THE 76 MILLION PLUS THE 20 MILLION. >> YOU HAVE 76 TO INVEST. HOW MUCH DO YOU HAVE THAT YOU CAN INVEST? >> ALL OF IT IS INVESTED. IT MAY BE INVESTED IN SOMETHING VERY LIQUID. >> NO, HOW MUCH DO YOU HAVE THAT YOU CAN INVEST FOR THE LONG TERM? >> FOR LONG TERM? >> YES. FOR MORE THAN A YEAR. >> I'LL MAKE AN ANALYSIS OF THAT FOR YOU, CHAIR ALLEN IN THE SENSE THAT WE HAVE A VARIETY OF OUR MATURITIES COMING DUE THIS YEAR. WHEN THOSE MATURITIES COME DUE, THERE'S ABOUT 31 MILLION FOR THIS CALENDAR YEAR. AS THOSE MATURITIES COME DUE, WE TAKE A LOOK AT WHAT OUR CASH FLOW NEEDS ARE TO DETERMINE WHETHER WE CAN TAKE OUT DURATION. >> YOU SHOULD ALWAYS KNOW HOW MUCH MONEY YOU HAVE THAT YOU CAN INVEST. WHEN I SAY INVEST, MEANING TO PURCHASE LONG TERM. LONG TERM MEANING UP TO FIVE YEARS INVESTMENT. TO THE METER THAT THEY'RE INVESTING THE MONEY CURRENTLY, HOW MUCH ARE THEY COMMUNICATED THAT THEY CAN INVEST? >> WHEN WE HAVE A MATURITY COME DUE, WE MAKE AN ANALYSIS OF THAT MATURITY. >> TODAY, YOU DON'T HAVE ANYTHING THAT YOU CAN INVEST? >> THERE'S NO MATURITY AVAILABLE TO INVEST RIGHT NOW. OTHER THAN THE ASSETS UNDER MANAGEMENT, WE HAVE IN LAFE OR UNDER OUR CAM ACCOUNT OR UNDER OUR MONEY MARKET ACCOUNT. >> THE REASON YOU HAVE IT IN THERE IS BECAUSE YOU HAVE EXPENSES COMING UP AND YOU NEED THAT MONEY TO PAY EXPENSES? >> YES. >> WE HAVE NO MONEY AVAILABLE CURRENTLY THAT WE CAN ACTUALLY PURCHASE LONG TERM SECURITIES. >> CHAIR, IF I CAN INTERJECT FOR A MINUTE. THIS IS AN ONGOING CONVERSATION BETWEEN OUR OFFICE AND THE CITY TREASURER'S OFFICE BECAUSE OBVIOUSLY WE'RE LOOKING REALLY CLOSELY AT THE CITY'S CASH FLOW NEEDS. WE'RE ACTIVELY EVALUATING THAT AND TO YOUR POINT, WE WOULD LOVE TO BE ABLE TO INVEST THE MOST POSSIBLE. >> MY QUESTION IS JUST HOW MUCH DO WE HAVE? THE ANSWER IS WE DO NOT HAVE ANYTHING THAT WE CAN INVEST IN. CURRENTLY, WE DO NOT. DO WE KNOW WHEN WE WILL HAVE THE FUNDS? WHEN WILL THAT BE? >> WE HAVE $31 MILLION IN MATURITIES THIS YEAR THAT COULD BE INVESTED, SOME OF WHICH COULD BE INVESTED LONG TERM, SOME OF WHICH WILL BE PAID OUT TO SERVICE DEBT OR A SERVICE AP OR A SERVICE PAYROLL. THE CURRENT YEAR THAT'S TO 31 MILLION OTHER THAN THE ASSETS THAT WE HAVE IN CASH. >> NOW WE'RE FEBRUARY. IT'S AN ADVISORY COMMITTEE, SO I WILL ADVISE IS TRACK WHAT'S GOING TO MATURE WHAT MONTH? EACH MONTH, YOU CAN GIVE THE CONSULTANT HEADS UP HOW MUCH MONEY THEY SHOULD HAVE THIS INFORMATION SO THEY KNOW WHAT TO ANTICIPATE. >> YEAH. IT'S IN THE PRESENTATION. I HAVE A BOARD UP IN THE OFFICE. EVERY DAY THAT I COME INTO THE OFFICE, I HAVE A WHITE BOARD THAT REMINDS US OF WHAT OPPORTUNITIES WE HAVE COMING UP. USUALLY A MONTH OR TWO IN ADVANCE, WE TAKE A LOOK, WE HAVE A DISCUSSION WITH THE FINANCE DEPARTMENT AS TO WHAT WE'RE GOING TO HAVE A NEED. FOR EXAMPLE, IN MAY, WE KNOW THAT WE'RE GOING TO HAVE A DEBT SERVICE NEED. >> THAT'S ALL I WAS ASKING. I JUST WANTED TO KNOW WHAT THAT NUMBER WAS. >> YEAH. WE TAKE A LOOK AT THAT ON A DAILY BASIS. YES. >> YOU SAID THAT'S PART OF THE CHART? >> WHEN THE MATURITIES ARE COMING DUE AS PART OF OUR PRESENTATION TO YOU EACH MONTH OR EVERY QUARTER, I BEG YOUR PARDON. >> IT'S COMING OUT? >> YES. >> THANK YOU. >> YES. >> CAN YOU SHOW ME THAT CHART? >> WE CAN DO. IT'S THIS PRESENTATION THAT YOU HAVE UP HERE NOW. PLEASE LASH, I BELIEVE. IF YOU SCROLL DOWNWARD TOWARDS THIS IS PAGE 9, YOU'LL SEE A LISTING. IT'LL SHOW YOU THE MATURITY DATE FOR EACH OF THOSE. AT THE VERY TOP THERE, IT GOES FROM THE SHORES THE MOST NEAR MATURITY TO THE FURTHER OUT. THERE YOU HAVE IN JULY 10TH OF 2025, WE HAVE A MATURITY COMING DUE FOR $3 MILLION AND THEN GOING DOWN JULY 15TH AND JULY 31ST, AND SO ON. IT'D BE THE COLUMN 1, 2, 3, [00:30:02] 04, 5 FROM FROM THE RIGHT. IT'S TOWARDS YOUR LEFT. >> ONE MORE QUESTION. WHAT PURCHASES WERE MADE SINCE THE LAST TIME? >> WE DID NOT MAKE ANY PURCHASES IN THE LAST QUARTER OUTSIDE OF MONEY MARKET OR CAMP. >> THAT'S ALL. THANK YOU. THAT'S ALL I HAVE ANYONE ELSE THAT HAS ANY OTHER QUESTIONS. >> MY ONLY COMMENT IS IN THE LAST FEW YEARS, THE TREASURER'S DEPARTMENT APPEARS TO BE MUCH MORE ON TOP OF THIS ISSUE THAN IN PRIOR YEARS, APPEAR TO BE MUCH MORE AGGRESSIVE AND RECOGNIZING THE VOLATILITY OF THE MARKET. RIGHT NOW, I THINK THERE'S SO MUCH VOLATILITY THAT VERY MUCH TO TREASURER SOLOMON'S COMMENT. THEY CAN'T MAKE DECISIONS IN ADVANCE OF WHEN THINGS COME DUE BECAUSE WE'VE GOT A NEW ADMINISTRATION. WE'VE GOT NEW GLOBAL ECONOMICS. THERE ARE A LOT OF THINGS THAT ARE MOVING. I APPRECIATE THE EFFORTS THAT YOU AND YOUR DEPARTMENT ARE DOING AND THE EFFORT THAT'S BEING PUT IN. MY ONLY QUESTION WOULD BE, CAN WE BE REASONABLY ASSURED THAT OUR INVESTMENTS ARE GOING TO KEEP PACE WITH OR EXCEED INFLATION? >> INFLATION IS A BEAST THAT'S DIFFICULT TO TAME. INFLATION IS INDEXED, AS YOU'VE SEEN HERE IN THE PRESENTATION. GREG, FROM METER MENTIONED A MOMENT AGO THAT IT HAD TICKED UP FROM THE 2.7% IN DECEMBER TO JUST JUST AROUND 3% IN JANUARY. THE CAMP THAT WE ARE WORKING WITH NOW PAYS US IN THE AREA OF ABOUT 4.6. MONEY MARKETS ARE PAYING A LITTLE BIT THAN THAT. LAFE IS STARTING TO COME UP. WE ARE ALWAYS LOOKING FIRST FOR SAFETY, SECOND FOR LIQUIDITY, AND THEN THIRD FOR YIELD. IN OUR MATRIX, WHILE WE WOULD LIKE TO GO AHEAD AND BE AGGRESSIVE, IF THAT'S THE WORD TO USE IN OUTPACING INFLATION, WE FOCUS INSTEAD ON LIQUIDITY AND SAFETY FIRST. IF IT COMES TO THE OPPORTUNITY WHERE WE CAN BE MORE AGGRESSIVE, TAKE DURATION OUT, AND BE ABLE TO LOCK IN DURATION FOR 2, 03, UP TO FIVE YEARS, WE WILL TAKE THAT OPPORTUNITY. TO ELABORATE ON THE CHAIRMAN'S POINT, WE HAVE A MONTHLY MEETING WITH METER, WHERE WE DO HAVE THOSE DISCUSSIONS AS WELL. THANK YOU. >> ONE THING TO KEEP IN MIND ALSO IN REGARDS TO THE PREVIOUS QUESTION ABOUT RETURNS, INTEREST RATE MATCHING, OR EXCEEDING INFLATION. REMEMBER, THAT THE INFLATION CAN BE PRETTY VOLATILE AND SO RIGHT NOW, THE FIVE-YEAR TREASURY IS ABOUT 4.2 BUT OUR PORTFOLIO, I THINK RETURN IS ABOUT 3.5. IF WE CAN KEEP INFLATION BELOW THREE OR UNDER, THEN WE MEET THAT REQUIREMENT. BUT AS WE SAW TWO YEARS AGO, INFLATION CAN POP HIGHER, AND WE'RE RESTRICTED TO A FIVE-YEAR MAX MATURITY, SO THERE WILL BE TIMES WHEN INFLATION POPS THAT WE CAN'T MATCH THAT. >> THAT'S WHY WE WANT TO AND WE'VE BEEN TRYING TO FIND OPPORTUNITIES TO LOCK IN DURATION. WHEN THOSE OPPORTUNITIES ARE AVAILABLE TO GET A FOUR-YEAR OR FIVE-YEAR AND NOT HAVE TO BE CONCERNED OR LESS CONCERNED ABOUT THE LIQUIDITY NEED OR THE CASH FLOW NEED. WE DO WANT TO LOCK IN MORE DURATION AND EXTEND THAT OUT. THAT'S OUR HEDGE AGAINST POSSIBLE INFLATION RISKS IS BY BLOCKING IN DURATION AND ABOUT VOLATILITY WITHIN THE INTEREST RATE MARKET. >> THE NEXT TIME YOU'LL HAVE THE FUNDS TO LOCK IN LONGER TERM WILL BE AROUND MAY. THAT'S THE NEXT MATURITY. >> THE NEXT MATURITY WOULD BE JULY. >> THANK YOU. >> WE WOULD LOOK INTO HOPEFULLY LOCK IN MORE DURATION THEN IF NOT SOONER, IF WE SEE AN OPPORTUNITY TO DO IT SOONER, THEN WE'LL LOOK WE'RE LOOK INTO DOING THAT. YES. >> ANY OTHER QUESTIONS, COMMENTS? THANK YOU. CAN I HAVE A MOTION TO ACCEPT ON FILE [OVERLAPPING]. >> BEFORE YOU DO THE MOTION, I JUST WANTED TO MENTION THAT THERE WERE NO PARTICIPANTS ON ZOOM OR E-COMMENTS OR IN-PERSON. >> THANK YOU. >> MOVE TO RECEIVE A FILE. >> SECOND. >> ROLL CALL, PLEASE. >> YOU WANT TO DO A ROLL CALL FILL? >> WE DO ROLL CALL. >> OR YOU COULD DO A [OVERLAPPING]. >> JUST A GROUP, LIKE ALL IN FAVOR. >> YEAH, CALL IN FAVOR. EITHER ONE? >> ALL IN FAVOR, STROLLER, LET'S DO IT. ALL IN FAVOR. >> AYE. [00:35:02] >> AYE. MOTION PASSES. >> THANK YOU. YOU'RE WELCOME. >> THANK YOU COMMISSIONERS. >> THANK YOU VERY MUCH. >> MOVING ON TO NEXT, [I. ITEMS CONTINUED FROM PREVIOUS AGENDAS] THE ITEMS CONTINUED FROM PREVIOUS AGENDA. HOMELESSNESS FUNDING. THIS WAS BROUGHT UP BY COMMISSIONER JESTE AND STAFF HAS PROVIDED VARIOUS FILES. I'LL LET STEPHANIE EXPLAIN THE FILES THAT SHE SENT US. >> THANK YOU, CHAIR, ALLEN. AS WE HAD MENTIONED LAST TIME, THERE'S VARYING DISCUSSION AROUND WHAT TYPE OF INFORMATION TO SHARE WITH THIS COMMISSION, HOW TO PULL THIS INFORMATION TOGETHER, AND WHEN STAFF HAS THE CAPACITY TO FOCUS ON THAT TASK, PENDING THE RESOLUTION OF ALL THOSE ITEMS, WE DID WANT TO PROVIDE YOU SOMETHING TO ANSWER ONE OF YOUR BASIC QUESTIONS, WHICH WAS, WHAT IS THE UNIVERSE OF WHAT WE'RE LOOKING AT? ARE WE TALKING ABOUT 100 MILLION? ARE WE TALKING ABOUT $10 MILLION? ARE WE TALKING ABOUT ONE MILLION DOLLARS? WHAT DOLLARS? I SPOKE WITH OUR CITY MANAGER AND SOME CITY STAFF INTERNALLY AND IDENTIFIED THE DOCUMENTS THAT WE SHARED WITH YOU. ONE IS A DOCUMENT, IT'S FROM FISCAL YEAR '22 '23, SO OBVIOUSLY, THIS IS SEVERAL YEARS OUT OF DATE. BUT IT IS A QUITE COMPREHENSIVE OVERVIEW OF THE VARIOUS BUCKETS OF CITY FUNDING RELATED TO HOMELESSNESS ALONG WITH SOME OF THOSE FUNDING SOURCES. IN ADDITION, I JUST PROVIDED ALL OF THE REPORTS THAT HAVE GONE TO COUNCIL IN THE PAST TWO FISCAL YEARS RELATED TO HOMELESSNESS FUNDING. THIS IS NOT MEANT IN ANY WAY TO BE A COMPREHENSIVE REPORT ON WHAT THE HOMELESSNESS FUNDING OR SPENDING SITUATION IS, BUT I DID WANT TO BRING SOMETHING TO SUPPORT YOUR CONVERSATION ON THIS TOPIC. THAT'S WHAT I HAVE FOR YOU TONIGHT. WE WANTED TO MAKE SURE, THIS IS OPEN FOR THE COMMISSION TO DISCUSS OR TO PROVIDE FURTHER DIRECTION. THANK YOU. >> MY UNDERSTANDING WAS THAT YOU WERE AT LEAST GOING TO GIVE US A SUMMARY AND EXPLAIN WHAT EACH NUMBER IN THE DOCUMENT, WHAT NUMBERS WE SHOULD LOOK AT. CAN YOU MAYBE START OPENING [OVERLAPPING]. >> I'M SORRY? >> CAN YOU IN THE FILES AND SHOW US WHAT NUMBERS WE SHOULD LOOK AT AND WHAT IT MEANS, GIVE AN OVERVIEW OF EACH OF THE DOCUMENT THAT YOU PROVIDED? >> SURE. >> SOME OF THESE DOCUMENTS ARE CLOSED OUT. I MEAN, THINGS FROM 2022, WE RECEIVED FUNDING, WE SPENT MONEY, AND THAT'S OVER. I THINK WHAT WE WERE ASKING ABOUT IS, AT THIS POINT AND GOING FORWARD, WHAT IS IT COSTING US TO FUND AND MANAGE THE HOMELESS SITUATION AND WHAT HAPPENS IF SOME OF THAT FUNDING GOES AWAY? >> SURE. I COMPLETELY UNDERSTAND THAT. [OVERLAPPING] YES. AS I SAID, THIS IS NOT MEANT TO BE A COMPREHENSIVE RESPONSE TO THE VARIETY OF QUESTIONS THAT WE BROUGHT UP AT THE LAST MEETING. CAN YOU PULL UP THE DOCUMENT? I THINK IT'S IN THE AGENDA. WHAT I THINK IS INTERESTING ABOUT THIS DOCUMENT, AND WE CAN LOOK THROUGH IT. I WAS NOT THE AUTHOR OF IT. I WAS NOT HERE WHEN ANYONE PUT IT TOGETHER. BUT WHAT I LIKED ABOUT THIS DOCUMENT IS IT BREAKS IT OUT INTO PIECES. IT TALKS ABOUT PUBLIC WORKS FUNDING FOR HOMELESSNESS. IT TALKS ABOUT THE POLICE, IT TALKS ABOUT FIRE, TALKS ABOUT OUR GRANT FUNDING SOURCES, OUR CITY ATTORNEY'S OFFICE. I THINK THIS IS A BASIS OF, AS THE CATEGORIES OF FUNDING THAT WE COULD LOOK AT. I THINK FROM THIS COMMISSION, YOU COULD TAKE A LOOK AT THAT BASE LEVEL OF INFORMATION AND SAY, IF WE'RE GOING TO ADD UP ALL THE SPENDING LAID OUT IN THAT DOCUMENT AND ALL THE FUNDING SOURCES, THAT GIVES ACTUALLY A PRETTY DECENT HIGH LEVEL PICTURE, AND THAT'S SOMETHING WE COULD PROBABLY DO FOR OUR CURRENT BUDGET AND MOVING FORWARD. BUT AGAIN, WE WOULD LOVE MORE DIRECTION ABOUT WHAT YOU WOULD ACTUALLY WANT TO SEE. IN ADDITION, I WOULD SAY, I THINK WE WOULD LIKE, THIS IS SOMETHING I THINK THE MISSION COULD LET COUNSEL KNOW THAT YOU'RE INTERESTED IN AND IS A PRIORITY FOR YOU, AND YOU BELIEVE IT'S A PRIORITY FOR THE CITY. >> MY UNDERSTANDING WAS THAT A FEW TIMES WHEN WE DISCUSSED, COMMISSIONER JESTE, THAT HIS DIRECT QUESTION WAS, HOW MUCH MONEY HAVE WE SPENT SO FAR ON HOMELESSNESS? IF YOU WOULD LIKE TO SHOW HOW THESE DOCUMENTS, WE CAN EXTRACT THOSE NUMBERS. >> AGAIN, JUST TO REITERATE, I'M NOT SAYING THAT THESE DOCUMENTS ANSWER THAT SPECIFIC QUESTION. [00:40:01] I UNFORTUNATELY WAS NOT ABLE TO COMMIT TO COMMISSIONER JESTE LAST TIME THAT WE WOULD COME BACK THIS MEETING WITH THIS INFORMATION. THAT'S JUST WHAT THIS INFORMATION IS. >> I MIGHT JUST MAKE A COMMENT IF I COULD. I'VE HAD A PRETTY EXTENSIVE BACKGROUND IN COST ACCOUNTING OVER THE LAST 30 YEARS, INITIATING COST ACCOUNTING PROGRAMS AND MANAGING COST ACCOUNTING. MY OBSERVATION, IF YOU WILL, IT'S ALL FROM THE PRIVATE SECTOR. BUT MY OBSERVATION IS THAT ONE OF THE FIRST STEPS THAT NEED TO HAPPEN IS THAT WE CATEGORIZE THE GRANTS, WHICH IT SOUNDS LIKE YOU'VE GOT A VERY GOOD HANDLE ON THE INCOMING SIDE. BUT IF WE LOOK AT, SAY, A SOURCE AND APPLICATION, THE FUNDS APPROACH, WE CAN SAY, THAT'S IMPORTANT THAT WE DESIGNATE WHICH OF THE GRANTS RELATE TO HOMELESS SERVICES. BUT ALSO, I THINK THE QUESTION THAT WE'RE FOCUSING ON DEALS WITH THE ACCOUNTING ARCHITECTURE THAT YOU MAY NOT EVEN HAVE IN PLACE IN ORDER TO BE ABLE TO DETERMINE SPECIFICALLY WHAT THE ACTUAL COSTS FOR THESE HOMELESS SERVICES ARE. I MIGHT ALSO SUGGEST THAT IN GOING FORWARD, I THINK IT'S AN IMPORTANT QUESTION FOR OUR FINANCE GROUP TO ANSWER AS AN EXAMPLE, YOU PROBABLY ALREADY HAVE COST CENTERS BEING THE DEPARTMENTS THEMSELVES. A QUESTION MIGHT BE FOR SAY, THE POLICE, FIRE, CITY ATTORNEY IN THIS CASE, THEY WOULD HAVE TO HAVE ACCOUNTS THAT THEY USE TO TRACK THEIR LABOR LET'S SAY, AND IN THIS CASE, LOOKING AT SOME OF THE DOCUMENTS, IT LOOKS LIKE THEY'RE COMING BACK WITH ESTIMATES WHICH HAVE BEEN FINE IN THE PAST, PERHAPS. BUT I THINK WE'RE FOCUSING ON THINGS THAT MAYBE THEY NEED A CHART OF ACCOUNTS THAT ADDS DIRECT LABOR FOR HOMELESSNESS THAT THE POLICE GET INVOLVED IN AS A POLICE, FIRE, CITY ATTORNEY. AS AN EXAMPLE, IF YOU HAVE A COURT DAY. THE TYPES OF THINGS THAT HAPPEN IS THE PUBLIC WORKS DEPARTMENT MAY, I DON'T KNOW IF IT'S OUTSIDE, THEY MAY WASH DOWN THE AREA. THEY WOULD CHARGE THAT THE TIME THAT THEY SPEND ON THAT OFF TO AND OVER, THEY WOULDN'T EVEN LOOK AT IT SPECIFICALLY, IT WOULD BE PART OF THEIR OVERHEAD. NOW, IF YOU HAVE A POLICEMAN THAT GETS ASSIGNED TO THAT COURT DATE, HE WOULD HAVE TO HAVE IN HIS OVERALL ACCOUNTING FOR HIS TIME A LINE ITEM THAT SAYS, HOMELESSNESS SERVICES. RIGHT NOW, IT PROBABLY IS WELFARES OR SOME OTHER GENERAL CASE. IT'S DIFFICULT FOR THEM AS AN EXAMPLE TO SPECIFICALLY SAY HOW MUCH HAS EXACTLY BEEN SPENT IN THIS REGARD. SAME THING WITH THE CITY ATTORNEY. IF HE'S GOT A CLERK THERE, THE FACT THAT THEY'VE GOT TO BE ACTUALLY ACCOUNTING FOR THAT ON A TRANSACTION BY TRANSACTION BASIS IN ORDER TO SPECIFICALLY REPORT BACK WHAT THE ACTUAL COSTS HAVE BEEN. EACH DEPARTMENT WOULD HAVE TO HAVE THAT, THEN YOU'D CONSOLIDATE THOSE COSTS AND THEN WE COULD PERHAPS ANSWER THAT QUESTION. THAT WOULD BE MY OBSERVATION. I DON'T KNOW THAT YOU HAVE THE TOOLS AVAILABLE HONESTLY AT THIS POINT TO PERHAPS PROVIDE A SPECIFIC ANSWER. >> I REALLY APPRECIATE THE COMMENT, AND I HAVE LOOKED AT IN VARIOUS OTHER CITIES AND IS JUST, PART OF MY GENERAL KNOWLEDGE, LOOKED AT PROGRAM BASED BUDGETING AND LOOKED AT COST CENTERS AND ACCOUNTING FOR YOUR TIME IN THIS PROGRAMMATIC WAY AND APPLYING THAT ACROSS THE CITY. THIS TENDS TO BE VERY TIME CONSUMING, REQUIRES A LOT OF DETAIL. IT REQUIRES STRONG DIRECTION TO SAY THAT THIS IS SOMETHING THAT THE CITY IS GOING TO DO TO EXPEND A LOT OF TIME TO SET ALL OF THESE STRUCTURES UP, AS YOU'RE SAYING, BECAUSE WE DO. WE HAVE COST CENTERS, WHICH ARE DEPARTMENTS. WE HAVE LINE ITEM BUDGETS, BY TOPICS, OR NOT BY TOPICS, BUT WE HAVE PERSONNEL. WE HAVE MEETING MEETINGS AND CONFERENCES, WE HAVE CONTRACTS AND PROFESSIONAL SERVICES. AGAIN, THERE ARE DEFINITELY WAYS, INCLUDING THE ONES YOU'VE MENTIONED TO TRACK AND THEN BE ABLE TO REPORT ON THESE COSTS. THAT'S NOT SOMETHING THAT THE CITY COUNCIL HAS ASKED THE FINANCE TEAM THAT I KNOW OF TO PREPARE IN THE PAST. IT'S NOT THE WAY OUR BUDGETS ARE SET UP. I'M NOT SAYING WE COULDN'T DO IT. I'M ONLY SAYING THAT IT DOES REQUIRE QUITE A BIT OF TIME AND EFFORT TO DO IT THE WAY YOU'RE TALKING ABOUT AND SO WE WOULD PROBABLY NEED SOME DIRECTION TO DO THAT. >> I GUESS MY COMMENT IS, I TOTALLY AGREE, AND I THINK PERHAPS THE BEST COURSE OF ACTION FOR US MIGHT [00:45:03] BE TO LET THE CITY COUNCIL KNOW HOW IMPORTANT WE THINK THE ISSUE IS, THEN YOU CAN GET THE DIRECTION THAT YOU NEED TO ADD THE ADDITIONAL ACCOUNTING TOOLS IN ORDER TO BE ABLE TO ANSWER OUR QUESTIONS MORE SPECIFICALLY, BUT I THINK THAT WOULD BE UP TO US TO MAKE OUR FEELINGS KNOWN TO THE CITY COUNCIL ABOUT HOW IMPORTANT WE THINK THIS TRACKING THE HOMELESS ISSUE IS. >> I MEAN, WE CAN SCROLL THROUGH THIS. IN ADDITION TO THAT OR PENDING THAT, SINCE IT'S NOT HERE AT THE MOMENT, THERE ARE DEFINITELY WAYS THAT WE CAN IDENTIFY THESE COSTS WITHIN OUR BUDGET. THAT'S ONE REASON I SHARED THIS DOCUMENT WITH YOU BECAUSE THEY GO THROUGH THESE AREAS. AGAIN, I DON'T KNOW IF THAT IS THE LEVEL OF DETAIL THAT WOULD BE INTERESTING TO THIS GROUP, BEFORE WE'RE ABLE TO PROVIDE THE GREATER LEVEL OF DETAIL. IF YOU LOOK HERE, THERE'S A SECTION THAT GOES THROUGH THE CITY'S GENERAL GRANT FUNDING AND THE HISTORY OF IT, IF YOU SCROLL DOWN, ERIN. >> STEPHANIE, IF I COULD STOP YOU IN THIS. >> SURE. >> FIRST OF ALL, THIS DOCUMENT IS THREE-YEARS-OLD. >> I COMPLETELY AGREE. >> IT'S THE MOST COMPLETE ACCOUNTING OF WHAT WE THINK IT COSTS FOR THINGS TO HAPPEN. BUT LET ME GIVE YOU AN EXAMPLE OF WHERE MY THOUGHTS ARE. IF YOU SCROLL DOWN TO PAGE 5, IT SAYS ESTIMATED FIRE DEPARTMENT EXPENDITURES RELATING TO HOMELESSNESS IS $912,000 A YEAR OUT OF THE GENERAL FUND. IF WE GET RID OF THE HOMELESS PEOPLE IN REDONDO BEACH? CAN WE SAVE $900,000 A YEAR? >> WE CANNOT. NO. >> THAT'S WHERE MY QUESTION IS. I MEAN, YOU'VE GOT THAT. IF YOU GO A LITTLE BIT EARLIER ON, ACTUALLY, WHERE IS IT? LET'S SEE. CITY NETS CONTRACT IS $170,000 A YEAR, $126,000 A YEAR FOR A HOUSING NAVIGATOR. DO WE NEED THOSE THINGS? IF WE DON'T HAVE GRANTS, HOW DO WE PAY FOR THOSE? >> OR WE'RE STILL PAYING FOR THEM NOW, THAT'S LIKE $350,000. >> AGAIN, THAT'S SOMETHING WE CAN LOOK AT. THIS IS SUPPOSED TO BE A GUIDE, NOT A [OVERLAPPING] >> I'M DOING THIS AS A THOUGHT, NOT AS A TASK FOR YOU, BUT JUST THINKING OUT LOUD OF WHAT CERTAINLY MY CONCERNS ARE, WHAT HAPPENS? HOW DO WE MANAGE THIS ON A LONG TERM BASIS, IF WE DON'T HAVE GRANTS COVERING THEM? THAT'S WHERE I'M AT. >> I THINK ONE THING THAT MAY PUT THIS COMMISSION'S MINDS AT EASE A BIT. FOR THE VAST MAJORITY OF THESE, AGAIN, I'D HAVE TO LOOK AT OUR CITY NET CONTRACT. BUT THE VAST MAJORITY OF THESE ARE NOT LONG TERM CONTRACTS. WE'RE NOT LOCKING OURSELVES IN TO PAY FOR THINGS THAT WE DO NOT HAVE ASSURED FUNDING FOR. IN THE INSTANCE THAT WE FAIL TO GET GRANT FUNDING AND THAT GRANT FUNDING IS SUPPORTING OUR HOUSING NAVIGATOR, WHAT'S GOING TO HAPPEN IS BUDGET IS GOING TO COME UP, WE'RE GOING TO HAVE TO FIGURE OUT WHERE TO FIND THAT FUNDING, SO WE WILL EITHER RECOMMEND TO COUNCIL TO APPROPRIATE FUNDS FROM THE GENERAL FUND, OR WE WILL SAY, YOU KNOW WHAT, WE WILL NO LONGER CONTINUE THIS SERVICE. >> BUT IF WE STILL HAVE HOMELESS, HOW DO WE GET RID OF THE RESOURCE THAT MANAGES THE HOMELESS? >> AGAIN, I THINK AT THE POINT THAT THERE IS STILL A NEED AND WE RUN OUT OF GRANT FUNDING, THAT'S WHERE COUNSEL MAKES A DECISION ABOUT WHETHER OR NOT THAT'S IMPORTANT ENOUGH OF AN EXPENDITURE FOR US TO PLACE IN THE GENERAL FUND. I THINK THAT'S GOING TO BE A POLICY DECISION. BUT THERE AREN'T MANY OF OUR GRANT FUNDS THAT WE'RE SPENDING ON HOMELESSNESS THAT ARE DEVOTED TO LONG TERM PROJECTS THAT WE'RE GOING TO BE COMMITTED TO IF THE GRANT FUNDING RUNS OUT, IF THAT MAKES SENSE. >> WELL, IF WE HAVE HOMELESS, IT'S A LONG TERM COMMITMENT. >> WELL, THE EXPENSE IS A LONG TERM COMMITMENT. THE FUNDING TO TAKE CARE OF THAT IS NOT A LONG TERM COMMITMENT AND THEREIN LIES THE PROBLEM. >> THAT'S WHAT WE'RE TRYING TO GET TO THE BOTTOM OF. NOT TRYING TO PUT YOU ON THE SPOT, BUT WE'RE TRYING TO SEE IF WE CAN COME UP WITH SOME THOUGHTS ABOUT THAT, JUST LIKE WE CAME UP WITH THOUGHTS ABOUT OUR DISASTER RESERVE FUND. >> YES. I SEE. IS YOUR IDEA TO TELL CITY COUNCIL, HEY, COUNSEL, WE'RE SPENDING ALL THIS MONEY, HOMELESSNESS PROGRAMS ARE GREAT, WE MAY NEED TO ADD AN ADDITIONAL TWO MILLION DOLLARS TO THE GENERAL FUND IF WE NO LONGER GET THESE GRANTS? >> THAT'S THE IDEA. >> IN ADDITION TO ASKING ASKING THEM FOR THEIR DIRECTION TO HAVE THE MORE SPECIFIC INFORMATION ABOUT THE ACTUAL EXPENSE SIDE OF THE EQUATION, [00:50:02] SO THAT SOME DETERMINATION CAN BE MADE ABOUT THE QUALITY OF DECISIONS THAT ARE BEING MADE AT THE DEPARTMENT LEVEL, LET'S SAY, THEY'RE GIVEN X AMOUNT OF FUNDS TO ACCOMPLISH SOMETHING, WHAT DID THEY DO TO ACCOMPLISH THAT? WHAT ACTUALLY ARE THEY DOING? WHAT'S THE CITY ATTORNEY ACTUALLY DOING FOR THE HOMELESS SERVICES? >> CITY ATTORNEY HAS SOMEONE. IT SOUNDS LIKE IS DEVOTED ALMOST FULL TIME TO HOMELESS. POLICE DEPARTMENT HAS SOMEONE THAT'S DEVOTED IN ADDITION TO ALL THE OTHER SERVICES, SOMEONE THAT'S DEVOTED ALMOST FULL TIME TO HOMELESS. WHAT DO WE DO WITH THOSE PEOPLE? WHAT DO WE DO WITH THOSE FUNDS? >> IT'S STARTING TO GET OUT OF CONTROL, AND I THINK WE'RE ALL TRYING TO GET TO A PLACE WHERE WE WANT TO PULL IT BACK UNDER CONTROL SO THAT THERE'S NOT A KNEE JERK WHERE ONE DAY WE GO, WELL, WE'RE SHORT ON MONEY, AND WE NEED TO GO GRAB IT FROM SOMEWHERE ELSE. >> WELL, ANOTHER ISSUE IS THIS. THE LAST TIME WE TOOK A CLOSE LOOK AT THIS, I REMEMBER THE FIGURES BEING WE WERE SPENDING ABOUT $1 MILLION ON HOME AND HALF OF THAT WAS COVERED BY OUTSIDE FUNDS, AND HALF WAS COMING FROM THE GENERAL FUND. NOW, I LOOK AT ESTIMATES THAT YOU PROVIDED AND I UNDERSTAND THE DIFFICULTY OF DOING THIS. THIS IS A HORNETS NEST THAT'S DIFFICULT TO GET AT IT. BUT IF WE LOOK AT WHAT COMES FROM GENERAL FUND, PUBLIC WORKS, THE FIRE DEPARTMENT, AND THE POLICE DEPARTMENT, AND I UNDERSTAND THE EFFECTIVENESS OF THE FIRE DEPARTMENT AND THE POLICE DEPARTMENT ESTIMATES, THEY'RE TAKING THE BEST GUESS AT WHAT WE'RE ASKING FOR, WHICH IS, GIVE US AN IDEA OF HOW MUCH TIME YOUR FOLKS SPEND ON HOMELESS ISSUES. NOW, JUST TO UNDERSTAND THE DIFFICULTY OF DOING THIS, IF YOU'RE PUTTING OUT FIRES AND TRYING TO FIGURE OUT HOW MUCH OF THIS EFFORT AND THIS FIRE WAS DIRECTED TO A HOMELESS ISSUE OR NOT. BUT I GET TO THIS POINT. THE SUM TOTAL OF THOSE FOUR ITEMS IS ALMOST $2 MILLION, 1,952,000. THAT DOESN'T EVEN INCLUDE THE ONE OR TWO PEOPLE IN THE CITY ATTORNEY'S OFFICE, WHO I'M LED TO BELIEVE ARE SPENDING MOST OF THEIR TIME ON THE HOMELESS ISSUE. OUR REAL ISSUE IS AS A TAXPAYER, AND AS FINANCE PEOPLE, THE QUESTION IS OBVIOUS. HOW MUCH MONEY ARE WE SPENDING ON THIS? WHAT HAPPENS IF IT'S NOT AN INSIGNIFICANT FIGURE? IF THAT $2 MILLION FIGURE IS CORRECT, AND IF WE ADD TO THAT SOMETHING FOR THE CITY ATTORNEY'S OFFICE, ALL OF A SUDDEN, WE'RE IN THE 2-2.5 MILLION DOLLAR RANGE. THAT'S A SIGNIFICANT PIECE OF A $110, $115 MILLION BUDGET. CITY COUNCIL WOULD JUMP ON THIS WHOLEHEARTEDLY AND SAY, WE HAVE TO KNOW WHAT THIS FIGURE IS. MAYBE WE NEED TO MAKE THIS APPEAL TO THEM BECAUSE CLEARLY IS IMPORTANT. SECONDLY, THIS IS AN OPERATING EXPENSE. WE'VE GOT TWO QUESTIONS. WHAT ARE WE SPENDING ON A DAY TO DAY BASIS FOR THE NEXT 12 MONTHS OR FOR THE FISCAL 25, WHAT ARE WE SPENDING AND HOW MUCH COMES FROM AN OUTSIDE SOURCE? THOSE ARE TWO CRITICAL THINGS. BUT AS IMPORTANT IS, WHAT IS THE CAPITAL EXPENDITURE IN THIS? THERE'S A FIGURE HERE OF 1.3 MILLION FOR PALLET SHELTER EXPANSION. HOPEFULLY WE GOT ALL THAT COVERED WITH A GRANT. >> THAT IS ALL GRANT-FUNDED. >> TO MEL'S QUESTION, IF THE GRANT GOES AWAY AND WE HAVE A PROBLEM WITH THE FACILITIES THERE, THEN THERE'S THE NEED TO REPLACE THAT. MAYBE WE GET MONEY FROM A GRANT TO DO THAT. MAYBE WE DON'T. BUT AT A MINIMUM, WE NEED TO KNOW WHAT IS THE CAPITAL INVESTMENT IN THAT FACILITY AND WHAT ARE WE LIKELY TO HAVE TO SPEND TO KEEP THAT GOING FORWARD? BECAUSE THE REAL QUESTION IS, WHAT'S GOING TO BE OUR SITUATION IN FIVE YEARS? ARE WE SPENDING LESS MONEY, OR DOES IT TAKE 20% OF THE TOTAL BUDGET? THAT'S A CRITICAL ISSUE, AND WE DON'T HAVE THE INFORMATION NOW TO BE ABLE TO ANSWER THAT, AND WE SHOULD. WE HAVE TO HAVE THAT ANSWER. >> WHAT'S SO STRANGE IS, I MENTIONED THIS ARTICLE THREE MONTHS AGO. YOU DON'T HAVE TO GO BACK THREE YEARS. JUST GO BACK THREE MONTHS, THIS IS WHAT LA TIMES PUBLISHED THIS ARTICLE ON OCTOBER 29TH OF LAST YEAR. THEY SAID REDONDO BEACH BROUGHT ITS HOMELESS NUMBERS TO FUNCTIONALLY ZERO. THEY HAVE DATA THAT YOU PROVIDED, WHERE IS YOUR OFFICE? SOME HOW THEY GOT THE DATA. WHAT DID WE GIVE THEM? [00:55:02] WHAT ARE THEY USING TO REACH THIS CONCLUSION? IF YOU HAVE REACHED FUNCTIONALLY ZERO, THE COST SHOULD BE A LOT LESS GOING FORWARD IF YOU CAN MAINTAIN THAT LEVEL. WE GOT A LOT MORE THAN SIMPLY DOLLARS AND SENSE ISSUES. IT JUST LOOKS LIKE WE JUST DON'T KNOW WHAT WE'RE SPENDING, HOW MUCH WE'VE BUDGETED, AND WHAT DATA THE LA TIMES IS LOOKING AT. >> I VIEW THIS AS A VERY GOOD FIRST STEP BECAUSE IT LAYS OUT TO ME THE DIFFICULTY OF GETTING AT THE DATA. THIS IS NOT AN EASY PROBLEM TO SOLVE, BUT IT'S A PROBLEM THAT WE'VE GOT TO KEEP FOCUSED ON ONE WAY OR THE OTHER. >> AGAIN, I THINK, WITH THE UPCOMING BUDGET, WE'RE GOING TO START PREPARATION SOONER THAN WE'RE HOPING. I THINK THAT'S AN EXCELLENT TIME TO HAVE THIS DISCUSSION. CITY MANAGER WILL BE HERE AT OUR MARCH MEETING, TALKING ABOUT PRIORITIES FOR THE BUDGET. IT'S SOMETHING THE COMMISSION COULD BRING UP WITH HIM. I THINK TO COMMISSIONER SHERBIN AND OTHERS POINTS, BE A GREAT MESSAGE TO SEND TO COUNCIL. >> DURING THE BUDGET PROCESS, WE SEE THE CITY MANAGER AND THE DIRECTOR OF PUBLIC WORKS. WE OFTEN SEE THE FIRE CHIEF OR THE POLICE CHIEF. THOSE QUESTIONS NEED TO BE DIRECTED FROM US TO THEM. AGAIN, CITY COUNCIL IS INTERESTED IN THIS, BUT WE CAN ASK THOSE FOLKS DIRECTLY FOR THAT INFORMATION. I THINK THEY MAY PUT THEM AND SAY CAN'T PROVIDE IT. BUT WE CAN CERTAINLY PUT THE QUESTION TO THEM. >> WE NEED TO GIVE THEM A HEADS UP FIRST, THOUGH. OTHERWISE, THEY WON'T BE PREPARED. >> I THINK MAYBE UNDERSTANDING FROM THEIR POINT OF VIEW, WHAT THEY'RE DOING TO CONTROL THE COSTS AND MANAGE THE FUNDS THAT THEY'RE GETTING AND FOR THESE INITIATIVES, TOO. I THINK IT'S A FAIR QUESTION. >> BUT D MILL'S QUESTION OF THE FIRE DEPARTMENT, IF THE HOMELESS FOLKS WENT AWAY, WOULD WE HAVE 912,000 THAT WE'RE NOT SPENDING? NOT DIRECTLY, BUT IF THAT FIGURE WAS CORRECT, IF THE ANALYSIS THAT CAME UP WITH A 912,000 WAS CORRECT, THAT MEANS THAT THE WORKLOAD COULD BE A SIGNIFICANTLY LOWER NUMBER IF THE HOME HOMELESS WAS NOT INVOLVED AND HAD ANYTHING TO DO WITH IT. BECAUSE IF THAT NUMBER IS CORRECT, THAT IS THE FIGURE THAT'S THE INCREASED COST WE HAVE TO PAY BECAUSE OF HOMELESS INVOLVEMENT. IT'S ALMOST AN IMPOSSIBLE NUMBER TO COME UP WITH. BUT IF THAT NUMBER IS CORRECT, THAT'S WHAT IT SAYS. >> ACTUALLY, WHAT I READ FOR POLICE AND FIRE INVOLVEMENT, OTHER THAN POLICE DEPARTMENT SAYS THAT THEY HAVE A PERSON THAT'S ASSIGNED AT LEAST PART-TIME TO THE HOMELESS SITUATION FROM A LAW ENFORCEMENT STANDPOINT. THAT'S AN AS AN ASSIGNED JOB. FOR THE FIRE DEPARTMENT, THAT $900,000 IS EXTRAPOLATED FROM HOW MUCH IT COSTS IN THEIR BUDGET FOR HOW MANY RESPONSES AND HOW MANY PEOPLE. WE'RE NOT GOING TO GIVE UP ANY FIREMEN. WE'RE NOT GOING TO GIVE UP ANY FIRE TRUCKS. THAT 900,000 IS GOING TO BE THERE, BUT TO YOUR POINT, MAYBE IT'LL BE BETTER QUALITY OF LIFE FOR THE FIREMEN THAT WE HAVE. >> IT ALSO MEANS THAT SOME TIME THAT IS SPENT ON THAT ISSUE NOW WOULD BE BETTER SPENT ON A FIRE AT YOUR PLACE OR MY PLACE IF IT HAPPENS. >> WE'RE NOT GOING TO GET ANY MONEY BACK FROM THE FIRE DEPARTMENT. PROBABLY NOT GOING TO GET ANY MONEY BACK FROM THE POLICE DEPARTMENT BECAUSE THOSE ARE STAFF POSITIONS. BUT WHEN WE'VE GOT A PERSON IN THE, PICK A DIFFERENT DEPARTMENT. >> PUBLIC WORKS. >> PUBLIC WORKS, WHO'S ASSIGNED TO GO AND MONITOR THE PALLET SHELTERS EVERY DAY. CLEAN UP AND DO THINGS LIKE THAT. THAT'S A JOB. EITHER THEY'RE GOING TO SUB IT OUT TO A SUBCONTRACTOR AND SPEND MONEY, OR THEY'RE GOING TO HAVE SOMEBODY ASSIGNED TO IT. THEY COULD BE DOING OTHER WORK THAT'S POSSIBLY MORE VALUABLE TO THE REST OF OUR CITY. IT'S A TOUGH ONE. I'M SURE THAT YOU'RE TRYING TO PULL ALL THESE NUMBERS TOGETHER. IT'S A MONUMENTAL EFFORT, AND I DON'T ENVY YOU TRYING TO DO THAT. BUT I THINK IT'S A CONVERSATION THAT WE NEED TO HAVE BECAUSE WE'VE GOT NUMBERS IN HERE THAT, LET'S SEE, OUTGOING EXPENDITURES RELATED TO HOMELESSNESS. CITY NET SERVICES, HOMELESS HOUSING NAVIGATOR AND ANNUAL COSTS FOR CITY VEHICLE. THAT ALONE IS OVER $300,000. WHERE DOES THAT COME FROM IF WE DON'T HAVE GRANT FUNDS? [01:00:01] I MEAN, THAT'S CASH OUT OF PUBLIC WORKS AND POLICE AND FIRE AND THE FINANCE DEPARTMENT. >> I THINK POTENTIALLY A METHOD FOR UPDATING THIS INFORMATION IS IF CITY COUNCIL ASKED STAFF TO PUT TOGETHER A BUDGET RESPONSE REPORT, WHICH THIS IS, WHICH CAN BE IN THIS STYLE, SOMEWHAT OF A COMPREHENSIVE LOOK THAT GETS TO ANSWER SOME OF THESE QUESTIONS. THAT'S A SHORTER TERM WAY TO LOOK AT THIS. I ALSO THINK IT'S A BALANCE OF PRIORITIES. I MEAN, THERE IS A LOT OF STAFF EFFORT THAT GOES INTO HOMELESSNESS EFFORTS. BUT AS COMMISSIONER YESTERDAY MENTIONED, THE CITY OF REDONDO BEACH HAS REACHED FUNCTIONAL ZERO, AND THAT LEADS TO A MUCH BETTER QUALITY OF LIFE, I THINK FOR ALL RESIDENTS OF REDONDO BEACH. I THINK MANY OTHER CITIES ARE JEALOUS OF THE STATE OF OUR STREETS AND BUSINESSES. WE'RE GETTING SOME VALUE FOR THE RESIDENTS FROM EMPLOYING THOSE RESOURCES AS WELL, I THINK. >> LAST TIME WHEN WE DISCUSSED THIS ITEM, WE ENDED WITH CAN WE HAVE A ROUGH ESTIMATE 20% PLUS OR MINUS OF HOW MUCH IT IS? IS IT DID WE SPEND $100,000 OR DID WE SPEND $1 MILLION? I MEAN, IF WE CAN'T EVEN GET THAT, TO ME, THAT'S CONCERNING. BECAUSE THAT'S IN THE BUDGET. WE HAVE TO KNOW WHAT WE'RE SPENDING MONEY ON. I AM CONCERNED THAT WE CANNOT GET THAT MONEY. HOW MUCH WAS IT BUDGETED THIS YEAR FOR HOMELESSNESS? >> I DO NOT HAVE THAT NUMBER FOR YOU AS I MENTIONED. >> WE SHOULD HAVE THAT NUMBER. >> I THINK AGAIN, THAT GETS BACK TO THE CASE THAT WE DON'T HAVE THE ARCHITECTURE IN PLACE OR EVEN HAVING A BUDGET LINE ITEM THAT ALL THE DEPARTMENTS ACTUALLY CONTRIBUTE TO TO COME UP WITH THAT NUMBER. AT THIS POINT, IT DOESN'T CONSIST OF A CONSOLIDATED NUMBER. IT CONSISTS OF A LITTLE BIT OF THE FIRE DEPARTMENT SAYING, WHEN WE GO OUT ON A CALL, WE TAKE A LITTLE SURVEY TO SEE IF THEY'RE HOMELESS OR NOT. THAT'S NOT EXACTLY A LINE ITEM, BUT THEY'RE TRYING TO ESTIMATE WHAT THEIR TIME IS. IF WE RAISE THE PRIORITY TO THE FACT THAT WE REALLY WANT SOME HARD NUMBERS ON THIS, THEN THAT ALLOWS THE FINANCE DEPARTMENT TO COMMIT THE TIME TO DO WHAT THEY NEED TO DO TO GET THE OTHER DEPARTMENTS TO REPORT ON THE SPECIFICS. WHAT IS THE FIRE DEPARTMENTS LINE ITEMS FOR THEIR HOMELESS COSTS, THE POLICE DEPARTMENT, THE CITY ATTORNEY? UNLESS YOU'VE SET IT UP FROM AN ACCOUNTING STANDPOINT, YOU JUST DON'T KNOW. EVERYBODY'S SPENDING A LITTLE BIT OF TIME, BUT YOU HAVE NO WAY TO QUANTIFY IT. THIS IS SOMETHING THAT PUBLIC CAN HOLD THE CITY ACCOUNTABLE. THIS IS A FAIR QUESTION THAT PUBLIC SHOULD AND ASK US BECAUSE WE'RE REALLY RESPONSIBLE FOR IT. THAT'S WHY THIS COMMITTEE IS HERE, THIS COMMISSION. >> WE NEED THE ABILITY TO BE ABLE TO RESPOND BACK IN A SUBSTANTIAL WAY. THAT'S ALL I'M SAYING. >> THEY NEED TO KNOW THE EXPENSES, THE REVENUE THAT CAME FOR ALL THIS GRANT MONEY. NOW, LET ME SHIFT IT A DIFFERENT WAY. WHEN THIS GRANT MONEY CAME, DON'T YOU HAVE TO PROVE TO THE FEDERAL GOVERNMENT OR THE STATE GOVERNMENT WHERE THE MONEY CAME HOW IT WAS SPENT? >> YES. I WILL ALSO SAY FOR EACH GRANT THAT WE GET FOR EACH PIECE OF THIS AD OF THIS FUNDING. SOMEONE IS MANAGING THAT FUNDING. WE ARE NOT OUT THEY'RE JUST SPENDING MONEY. >> TO WHO IS MANAGING? >> CAN THEY TELL US WHERE THAT MONEY WENT, HOW MUCH THEY RECEIVED. IT'S SIMPLE. HOW MUCH GRANT MONEY WE RECEIVED FOR HOMELESSNESS, AND HOW IT WAS SPENT? I MEAN, THIS SHOULD BE PART OF THE AUDIT. >> IF YOU'RE TALKING ABOUT JUST OUR GRANTS. >> YES. >> THAT'S VERY EASY BECAUSE WE HAVE A FINITE NUMBER OF GRANTS AND WE SPEND THOSE ON A FINITE NUMBER OF THINGS. THAT'S NOT CHALLENGING. >> LET'S START SOMEWHERE. LET'S START THERE. THAT'S BECAUSE THAT SHOULD BE AN EASY ONE. >> BUT ISN'T THIS ALWAYS GOING TO BE A LITTLE FUZZY? I MEAN, WE'VE GOT CERTAIN POSITIONS THAT ARE DEDICATED TO THE HOMELESS, THE PERSON WHO'S THE VP IN CHARGE OF HOMELESSNESS, THE TIME SPENT FROM THE CITY ATTORNEYS THAT ARE ASSIGNED TO THIS. THOSE SPECIFIC ALLOCATIONS ARE EASY TO FIND. THE AMOUNT OF TIME SPENT BY FIRE DEPARTMENT ON CALLS AND POLICE DEPARTMENT ON CALLS, THAT'S ALWAYS GOING TO BE FUZZY. THAT'S NEVER GOING TO BE TO A LINE ITEM AND PULL OUT A FIGURE AND SAY THAT'S IT. >> TRULY. BUT IN SETTING UP YOUR ACCOUNTING FOR THAT, [01:05:01] YOU'VE GOT DIRECT COSTS THAT SAY, THIS PERSON IS ASSIGNED TO THIS JOB PERIOD. THAT'S A DIRECT COST. THE INDIRECT COSTS ARE SAYING, LET'S TAKE ALL OF THESE OTHER ANCILLARY COSTS, PUT THEM TOGETHER IN A POOL AND CALL THAT OVERHEAD. AND THEN YOU APPLY THAT BACK TO THE COST. WELL, THAT'S WHAT THEY'VE DONE HERE. WELL, YOU DON'T KNOW THE DIRECT ANSWER. >> CAN WE EVEN GET AN UPDATE? IT'S BEEN 2.5 YEARS ALMOST. >> THAT'S WHAT THEY'VE DONE HERE. THE 912,000 FOR THE FIRE DEPARTMENT, THE 645 FOR POLICE. THAT'S EXACTLY HOW THEY'VE COME UP WITH THAT FIGURE. I DON'T KNOW I DON'T KNOW HOW TO MAKE THAT MORE EXACT. >> WELL, BECAUSE THEY'RE NOT ACCOUNTING SPECIFICALLY FOR THE TIME THAT THEY SPENT ON THAT. I MEAN, LIKE A POLICE CALL, IF A POLICEMAN NOW GETS CALLED OUT, THERE'S A HOMELESS THERE'S A PERSON OUT HERE UP AND DOWN THE STREET SCREAMING AND THEY GO OUT AND MAKE THAT CALL AND THEY SPEND AN HOUR ON THE CALL. THEY DON'T ACCOUNT FOR THAT AS A HOMELESS PERSON, AND THEY COUNT ON THAT AS IN SOME OTHER CATEGORY. IT NEVER FINDS ITS WAY INTO THE COST OF MANAGING THE HOMELESS. >> FIRST OF ALL, THIS THING IS THREE YEARS OLD AND THERE'S BEEN NO FOLLOW UP FROM THEN TO NOW TO SAY WHETHER THE NUMBER OF CALLS HAS GONE UP OR GONE DOWN. WE DON'T KNOW WHAT THAT NEW NUMBER IS. WE DON'T HAVE A CLUE. IT MAY HAVE TRIPLED, AND IT MAY HAVE HALVED. ONE EASY NUMBER COULD FIND THE ARTICLE SAYS, CITY NOW LEASES 18 SRO UNITS AND ADDING 25 TINY HOMES. WHAT'S THE COST OF THOSE 25 TINY HOMES? >> WHERE IS IT COMING FROM? THAT WAS THE GRANT. >> AGAIN, SOME OF THIS INFORMATION AS CHAIR ALLEN SAID, SOME OF THIS IS EASY TO FIND BECAUSE IT'S OUR GRANTS. IT'S FOR A SPECIFIC PURPOSE. WE KNOW WHERE THE GRANT MONEY IS, WE KNOW WHERE THE GRANT SPENDING IS. WE'RE MONITORING IT. WE ARE REPORTING ON IT. THE ISSUE HERE THAT WE'VE MENTIONED IS THAT WE DON'T HAVE ONE PERSON OR ONE SINGLE ENTITY OVERSEEING ALL OF THIS FUNDING. >> EACH INDIVIDUAL DEPARTMENT OR PERSON IS OVERSEEING THEIR PIECE OF THE FUNDING. THEY KNOW WHAT'S HAPPENING WITH THE FUNDING, THEY KNOW WHAT THEY'RE SPENDING AND WHAT THEY HAVE TO SPEND. THE CITY IS MANAGING EACH PIECE OF THIS. I DON'T WANT TO MAKE IT SOUND LIKE NO ONE KNOWS WHAT THEY'RE DOING. PEOPLE ARE MANAGING THE DIFFERENT PIECES OF IT. IT HAS NOT BEEN A CONSISTENT REQUEST AS FAR AS I KNOW, FROM THE COUNCIL OR A PRIORITY TO REPORT INFORMATION IN THIS FASHION, WHICH IS WHY YOU HAVEN'T SEEN IT REPORTED IN THIS WAY? BECAUSE THEY'RE RELYING ON THIS COMMITTEE. >> OR DO WE MAKE A RECOMMENDATION TO THE CITY COUNCIL IS WHAT YOU'RE SAYING? >> I'D LIKE TO POINT OUT ONE THING ABOUT THESE GRANTS. WHEN WE GET A GRANT FOR $18,000 TO HAVE SOMEONE OUT OF A PARTICULAR DEPARTMENT PERFORM PARTICULAR JOB. WE KNOW THAT WE'RE GETTING $18,000, AND WE'RE GOING TO CHARGE $18,000 FOR THAT JOB. IT MAY COST $150 AND WE HAVE TO ABSORB THE DIFFERENCE. WE HAVE NOTHING THAT SAYS, "WHAT'S THE INCREMENTAL DIFFERENCE?" IF WE ARE CHARGING SPECIFICALLY WHAT THOSE GRANTS ARE, I CAN ALMOST BET YOU THAT EITHER WE'RE UNDER OR OVER IN THE AMOUNT OF WORK THAT'S ACTUALLY DONE. NOW, ON THINGS LIKE PROCUREMENT OF PALLET SHELTERS, WE GET A BID FOR $180,000 AND WE GET A GRANT FOR $180,000, AND WE SPEND $180,000. BUT WHEN IT COMES TO PERSONNEL COSTS, IF YOU GO OVER, YOU JUST EAT THE DIFFERENCE. DEPARTMENTS, ACCORDING TO EVERYTHING YOU HAVE HERE, THEY NEVER GO UNDER, SO YOU GOT TO BELIEVE THAT AT SOME POINT IN TIME THEY'RE GOING OVER. >> AGAIN, I COULD ASK THE PUBLIC WORKS DEPARTMENT WHO SPECIFICALLY WORKS ON THE PALLET SHELTER, BUT AGAIN, WE GET THE GRANT FOR A CERTAIN AMOUNT, WE ARE NOT ALLOWED TO SPEND OVER THE AMOUNT APPROPRIATED FOR A PROJECT. WHEN THAT FUNDING RUNS OUT, WE DON'T SPEND ANY MORE MONEY. WE DON'T TAKE THAT AND SAY, "WELL, LET'S JUST CHARGE IT TO THE SOUTHERN GENERAL FUND ACCOUNT. WE'RE NOT ALLOWED TO DO THAT. IF WE NEEDED ADDITIONAL FUNDING, WE WOULD GO BACK TO CITY COUNCIL AND REQUEST THAT ADDITIONAL FUNDING. BUT I THINK THE OTHER POINT TO MAKE WITH THESE GRANTS, THEY ALL GO TO CITY COUNCIL. EVERY SINGLE ONE, WE GO TO CITY COUNCIL TO ACCEPT THE GRANT. AT SOME POINT, CITY COUNCIL COULD SAY, "YOU KNOW WHAT? I DON'T KNOW IF THIS IS SOMETHING THAT'S SUSTAINABLE. WE DON'T NEED TO ACCEPT THE GRANT. EACH PART OF THIS IS A POLICY DECISION THAT COUNCIL IS MAKING AND THAT CITY STAFF IS THEN IMPLEMENTING. I UNDERSTAND THE CONCERN ABOUT NOT SEEING THIS WHOLE NUMBER, [01:10:04] BUT I DO WANT TO ASSURE THE GROUP THAT AT LEAST ON AN INDIVIDUAL PROGRAMMATIC LEVEL, STAFF IS MONITORING THEIR COSTS AND THEIR PROGRAMS CAREFULLY. >> FOR THE SAKE OF STARTING SOMETHING, AN ACTION PLAN, CAN WE JUST START WITH NUMBERS, NOT A BIG REPORT, NOT A COMPLICATED REPORT, BUT LITERALLY 1+1 = 2? IN FISCAL YEAR '24, '25, WE RECEIVED THIS MUCH GRANT MONEY. SIMPLE NUMBER THAT SHOULD BE EASY. FOR HOMELESSNESS, WE RECEIVED THIS MUCH GRANT MONEY. AT LEAST WE KNOW HOW MUCH GRANT MONEY WAS FOR HOMELESSNESS. THAT'S REVENUE. >> IT WAS SEPARATED BY OPERATING COST VERSUS CAPITAL. >> FOR HOMELESSNESS. >> FOR HOMELESS GRANT, IF WE GET A GRANT FOR NEW PALLET SHELTERS, WE KNOW EXACTLY WHAT THAT IS, BUT THAT'S CAPITAL. THAT'S A CAPITAL INVESTMENT AS OPPOSED TO AN ANNUAL OPERATING. >> RIGHT NOW, JUST BABY STEPS, JUST SO THAT WE'RE STARTING SOME KIND OF A PROCESS. AT LEAST WE HAVE HOW MUCH GRANT MONEY. THEN JUST LIKE FOR THE AUDITS, I'M SURE YOU HAVE TO PRESENT, HOW WAS THAT GRANT MONEY SPENT? >> WOULD YOU LIKE TO HAVE THIS IN ADDITION TO WHAT MANY OF THESE COMMISSION MEMBERS HAVE SUGGESTED, WHICH IS TO SEND A MESSAGE TO COUNCIL CONVEYING YOUR REQUEST FOR A LARGER LOOK AT THAT, OR IS THAT IN PLACE OF IT? WE WOULD JUST WANT TO LOOK AT THE GRANT FUNDING. >> THAT'S INTERESTING. THE FIRST PART IS JUST AN EMAIL TO COUNCIL. >> THAT DOESN'T REQUIRE A LOT OF WORK. >>THAT WOULD BE FROM THE COMMISSION. >> WE'LL SEND AN EMAIL TO COUNCIL, AND THEN MEANWHILE, WE'RE ASKING STAFF JUST TO PROVIDE US HOW MUCH WAS THE GRANT RECEIVED, AND HOW IT WAS SPENT. >> HOW MUCH IS CAPITAL AND HOW MUCH IS OPERATING? >> NOT A WRITTEN REPORT, BUT JUST AN EXCEL SHEET LINE ITEMS. WE CAN START FROM THERE, AND THEN WE CAN CONTINUE DISCUSSION AND WE'LL LEAVE THIS ITEM ON OUR AGENDA FOR NEXT TIME. >> BEFORE WE DO A MOTION, I JUST WANTED TO NOTE THERE WAS NO COMMENTS ON ZOOM, HOWEVER, WE DID HAVE A E-COMMENT FROM AUSTIN CARMICHAEL. IT IS QUITE LENGTHY. I'LL SAY, "HELLO, COMMISSIONERS, REDONOBEACH CITIZEN, AUSTIN CARMICHAEL HERE. I BEG YOUR INDULGENCE, AS I AM UNSURE, WHAT IS TO BE DISCUSSED SPECIFIC FISCAL YEARS, RECONCILIATION OR TOPICS THAT HAVE UNAPPLIED CASH, ETC. I DID SOME DIGGING TO GET A COMPREHENSIVE LENS OF THE REDONOBEACH ENHANCED RESPONSE TO HOMELESSNESS, INCLUSIVE OF FUNDING AND YOUR TOTAL $3.8 MILLION. BASED ON THE ATTACHED APPEARS TO FALL SHORT OF THE TOTAL FUNDING CALCULATED $9.1 MILLION FROM CITY COUNCIL MEETING REPORTS. I SENT A DETAILED BREAKDOWN OF HOW I REACHED MY NUMBER TO INTERIM FINANCE DIRECTOR FOR DISTRIBUTION TO THE COMMISSION AS I WASN'T SURE THIS SECTION WOULD BE AVAILABLE FOR PUBLIC COMMENT. I'M HAPPY TO SEE THAT IT IS AND LOOK FORWARD TO THE DISCUSSION." HE GOES INTO SOME THINGS ABOUT CHARACTER COUNT. "THE FUNDING SUMMARY BELOW IS ONLY INCLUSIVE OF THE FUNDING DATES, THE SOURCE, AND THE AMOUNTS PRESENTED TO MAYOR AND CITY COUNCIL. THE PURPOSE CAN BE FOUND ON THE ADMIN REPORTS PRESENTED AT THOSE MEETINGS. WE HAVE FISCAL YEAR 1920, TOTALED $245,000 FEBRUARY 2020, SBC COG, $240,000 FISCAL YEAR '21, '22, TOTAL $306,000, JANUARY 11, 2022, SBC COG $306,000. THERE'S A COUPLE OF OTHER TOTALS WE HAVE WITH DATES, SO IT'S QUITE LENGTHY. >> WE SHOULD YOU HIRE HIM? >> IS IT POSSIBLE TO HAVE THAT FORWARDED TO US? >> YES. THIS IS A E-COMMENT, SO IT'S QUITE LENTHY. >> CAN WE PLEASE HAVE THAT ATTACHED TO THE AGENDA ITEM FOR NEXT TIME? BECAUSE I WANT TO READ IT, AND THEN I WANT US MAYBE GO THROUGH MAYBE IT'S SOMETHING THAT WE CAN REALLY USE, THAT STAFF CAN USE. >> THERE'S QUITE A LOT OF NUMBERS HERE THE IN FISCAL YEAR, SO I DON'T WANT TO TRIGGER. I'LL FIGURE OUT HOW TO SAVE THIS AND CLIP IT SO WE CAN HAVE IT FOR INSIDE. [01:15:01] >> THANK YOU. MAYBE THAT'S HIS COVER LETTER TO GET A JOB. >> THERE ARE NO PUBLIC COMMENTS HERE. >> THANK YOU. DO WE NEED A MOTION TO ACCEPT AND FILE AND LEAVE IT ON THE AGENDA? >> WE WANT TO MOVE TO ACCEPT AND CONTINUE ON THE FOLLOWING AGENDA? WE NEED TO MAKE A MOTION FOR WRITING THE LETTER TO CITY COUNCIL. >> IS IT A TWO-PART? >> THAT WOULD BE A SEPARATE ONE. >> DID YOU JUST WANT TO DO THE FIRST MOTION? >> WELL, DO YOU WANT TO PUT TOGETHER WHAT ARE WE GOING TO SAY IN THE LETTER TO COUNCIL? THAT WE'D LIKE TO INITIATE IT. I'D LIKE TO BE INVOLVED IN IT, BUT I THINK JUST GENERALLY THAT WE FEEL THIS IS A VERY IMPORTANT ISSUE AND WE'D LIKE TO SUGGEST THAT WE DEVELOP A SYSTEM THAT ALLOWS US TO MONITOR IT AND TAKE ALL OF OUR COMMENTS INTO CONSIDERATION SO THAT WE'RE ABLE TO ADVISE THE CITY COUNCIL ON THE STATUS AND HOW WE'RE DOING ON IT, AND ANY SUGGESTIONS IF IT'S MEETING THE OBJECTIVES. BUT WE NEED TO HAVE SOME QUANTITATIVE SOME QUANTITATIVE BASIS FOR TRACKING THE COSTS AND REPORTING THE COST. >> WHO WOULD LIKE TO BEGIN WRITING THE LETTER? I KNOW COMMISSIONER JESTE IS THE ONE WHO INITIATED THIS ITEM, IT DOESN'T HAVE TO BE ANYTHING LENGTHY, BUT WOULD YOU LIKE TO INITIATE THEN WHAT WE'LL DO WE'LL TAKE YOUR DRAFT? THEN EACH PERSON WILL ADD DRAFT IN NEXT MEETING. WE'LL BRING WHATEVER WE HAVE THREE PEOPLE, AND THEN WE'LL BRING IT TO THE NEXT MEETING AND REVIEW, AND THEN WE CAN DO IT DURING THE MEETING. >> YOU WANT TO REVIEW THE LETTER AT THE NEXT MEETING BEFORE YOU SEND IT TO THE CITY COUNCIL? >> YES. >> WE MAY MISS THE BUDGET HERE. >> WE'RE GOING TO MISS ALL THE BUDGETARY STUFF IF YOU DO THAT. >> IS THERE A WAY THAT WE CAN SHORT CIRCUIT IT A LITTLE BIT AND MAYBE GET AN E-MAIL BACK AND FORTH. >> THE FASTEST WAY TO DO THAT IS EITHER FOR THE CHAIR OR FOR THE CHAIR TO APPOINT SOMEONE TO PUT THE LETTER TOGETHER, WORK WITH STAFF TO MAKE SURE IT'S FORMATTED PROPERLY. AND THEN AT MAXIMUM, IF IT'S OTHER THAN THE CHAIR PUTTING IT TOGETHER, THEN IT COMES BACK TO THE CHAIR FOR FINAL SIGNATURE AND GOES TO THE CITY COUNCIL. >> WE'LL HAVE A LITTLE SUBCOMMITTEE OF THREE OF US. WHO WOULD LIKE TO BE IN THAT COMMITTEE? WOULD YOU LIKE TO BE IN THAT COMMITTEE. ONE, TWO, THREE. WE'LL TAKE CARE OF IT, AND WE NEED TO DO THAT ASAP. >> THE MOTION IS THAT COMMISSIONER JESTE, COMMISSIONER SHERBIN, AND THE CHAIR WILL PUT TOGETHER A LETTER TO THE CITY COUNCIL AND MOVE IT FORWARD AT THE EARLIEST OPPORTUNITY, SO MOVED. >> YES. AYE >> SECOND. >> AGREED. >> WE NEED TO DO ROLL CALL NUMBER OR NOT? >> WE COULD DO A ROLL CALL ON IT, BUT JUST TO BE SURE, YOU STARTED THE MOTION AND THEN MAYOR AND SECOND? >> YES. >> DO WE NEED AN INDIVIDUAL CALL OR CAN WE JUST SAY AYE? >> I THINK WE COULD JUST SAY AYE OR NAY. I THINK IF YOU WERE TO DO ROLL CALL THAT USUALLY INVOLVES LIKE FINANCIAL DISCUSSIONS. >> AYE. >> ALL IN FAVOR. >> AYE. >> ALL THOSE OPPOSED. >> NO, OPPOSED. WHEN YOU HAVE A DRAFT, YOU CAN SEND IT TO ERIN AND ME AND WE'LL DO SOME FORMATTING FOR YOU, SEND IT BACK. THEN COMMISSIONER SHERBIN IS AN EXPERT ON THIS FROM HIS LAST TIME. >> LET ME QUALIFY THAT PLEASE. I HAVE A LITTLE EXPERIENCE IN THE PRIVATE SECTOR AND NO EXPERIENCE IN THE PUBLIC SECTOR. >> WE CAN'T STAY JUST A FEW MINUTES AFTER THE MEETING, SO WE CAN'T. >> THE NEXT ITEM, BUILDING MAINTENANCE REPLACEMENT PLANNING. STEPHANIE MAYOR, PLEASE. >> I KNOW, SO MANY FUN TOPICS FOR ME TONIGHT. WE DO NOT HAVE ANYTHING FOR YOU ON THIS TOPIC TONIGHT, YOUR DIRECTION WAS TO KEEP IT ON THE AGENDA. WE HAVE NOT FORGOTTEN IT. WHAT I WILL SAY FOR THIS ITEM, AS YOU MENTIONED EARLIER, YOU'LL SEE THE PUBLIC WORKS DIRECTOR IN THE LEAD UP TO THE BUDGET PROCESS. ANOTHER ITEM I'VE TALKED TO THE CITY MANAGER ABOUT RELATED TO THIS THAT WE LOVE YOUR EXPERTISE ON IN THE COMING YEAR IS A REVIEW OF OUR INTERNAL SERVICE FUNDS, INCLUDING WE HAVE ONE FOR, I'M JUST LOOKING AT THESE, BUILDING OCCUPANCY. WE'RE GOING TO SEE IT IN METEOR IN JUST ONE SECOND, IT'S ESCAPING ME. BUT I THINK THAT'S AN AREA WHERE WE AGAIN, APPRECIATE YOUR INPUT AND ALSO TOUCHES ON SOME OF THIS ADVANCED PLANNING. THOSE ARE TWO RELATED ITEMS I HAVE FOR YOU ON THAT TONIGHT. [01:20:07] >> WHEN WOULD WE WANT TO CONTINUE WITH THIS ITEM? WOULD WE WANT IT NEXT TIME OR? >> PUT ON THE AGENDA UNTIL IT GETS RESOLVED. MOVE TO RECEIVE AND CONTINUE ON THE AGENDA TO THE NEXT ONE. >> ALL IN FAVOR, AYE. >> AYE. >> NEXT ITEM, J2. >> HOLD ON ONE SECOND, WAS THERE A SECOND TO THAT MOTION? >> I HAD A SECOND, SILENT A SECOND, I NODDED. >> ITEM J2, FISCAL YEAR 2024, '25 TO FINANCIAL REPORTING OF JULY 2024, DECEMBER 2024. I'LL JUST HEAD OVER TO THE OTHER SIDE. >> PERFECT. >> WE'RE PRESENTING OUR FINANCIAL REPORTING THROUGH DECEMBER OF 2025. BEFORE I START THIS, I JUST WANTED TO ACKNOWLEDGE ERIN. IN ADDITION TO RUNNING OUR MEETINGS REALLY WELL, SHE ALSO HAS RUN ALL THE NUMBERS FOR THESE AND PUT TOGETHER THESE PRESENTATIONS. MAYBE ONE DAY YOU'LL GET TO HEAR FROM ERIN INSTEAD OF ME, BUT WANTED TO ACKNOWLEDGE HER HARD WORK ON THIS. >>THANK YOU. >> AS USUAL, WE'RE LOOKING AT THIS YEAR THROUGH DECEMBER AND WE COMPARED TO LAST YEAR, THE PRIOR DATE TO CAPTURE ANY TRENDS. THE GOOD NEWS IS OUR TAX REVENUES, AS EVERYONE KNOWS, OUR LARGEST GENERAL FUND, LARGEST CITY-WIDE REVENUE SOURCE ARE ON TREND WITH OUR PRIOR YEAR AND LOOKING GOOD FOR US TO RECOUP ALL OF OUR PROJECTED REVENUE DURING THIS BUDGET CYCLE. IN PARTICULAR, SEE, OUR PROPERTY TAX IS UP A DECENT AMOUNT OVER PRIOR YEAR AT THIS TIME. SALES TAXES IS A LITTLE BIT BELOW. THIS IS TIMING MORE THAN ANYTHING. SALES TAX WEEKS ARE TO BE PRETTY FLAT THIS YEAR, BUT SHOULD BE WITHIN BUDGET. SAME FOR BASICALLY EVERYTHING ELSE. WE'RE JUST ABOUT ON TRACK, SLIGHTLY ABOVE, SLIGHTLY BELOW. I'LL JUST NOTE FOR OUR TRANSIENT OCCUPANCY TAX, IT LOOKS A LITTLE BIT LOW COMPARED TO BUDGET. THAT'S BECAUSE WE EXPECT THE BIG BUMP IN OUR TRANSIENT OCCUPANCY TAX THIS YEAR TO COME IN THE SECOND PART OF THE YEAR WHEN WE EXPECT TO START RECEIVING TOT FROM OUR MARINE AVENUE HOTELS. WELL, IT LOOKS A LITTLE BIT BELOW OUR 50%, THAT'S WHAT'S HAPPENING. NON-TAX REVENUE IS ALSO AT OR SLIGHTLY ABOVE BUDGET. OUR CHARGES FOR SERVICE, SO WE'RE SLIGHTLY ABOVE LAST YEAR. WE'RE ON TRACK FOR BUDGET. AGAIN, THIS IS WHERE COUNCIL APPROVED SOME INCREASES AT BUDGET TIME. IT'S GOOD NEWS THAT AT HALFWAY THROUGH THE YEAR, WE ARE ABOVE BUDGET AND ABOVE OUR PRIOR YEAR. >> OUR OTHER FUND REVENUE IS ALSO BASICALLY IN LINE. OUR ENTERPRISE FUNDS ARE A LITTLE BIT BELOW, AND THIS IS DUE TO A DECREASE IN OUR TRANSIT FUND. WE HAD SOME LARGE PURCHASES LAST YEAR OF BUSES, WHICH WE DO NOT HAVE AGAIN THIS YEAR, SO IT'S A FUNCTION OF OPERATIONS. HERE'S OUR SUMMARY, YOU CAN SEE WHERE WE ARE. WE'VE COLLECTED A SLIGHTLY SMALLER PERCENTAGE OF OUR BUDGET AT THIS POINT IN THE YEAR, [01:25:06] BUT AGAIN, SOME OF THAT IS DUE TO TIMING. IT'S ALSO A LITTLE BIT LARGER OF A BUDGET THIS YEAR, AND WE BELIEVE WE'RE ON TRACK. SAME IS TRUE ACROSS OUR OTHER CATEGORIES. ONE THING, AGAIN, WE'VE BROKEN OUT OUR CITY FEES AND OUR OVERHEAD AND THAT CHARGES FOR SERVICE, SO YOU CAN MORE EASILY IDENTIFY THAT CATEGORY, AND THEN YOU CAN JUST LOOK DOWN AT OUR OTHER FUNDING SOURCES. OVERALL, AGAIN, OUR PERCENTAGE RECEIVED IS SLIGHTLY BELOW, BUT LOOKING AT THE SOURCES INDIVIDUALLY, WE BELIEVE WE'RE ON TRACK FOR MEETING OUR BUDGET. THIS IS JUST A SUMMARY BY CATEGORY. AGAIN, WE HAVE OUR TAX LICENSES. I DON'T NEED TO READ ALL OF IT. YOU CAN SEE IT VERY WELL, AND THIS IS THE SAME CHART BY FUNDING TYPE. LOOKING AT SPENDING, AGAIN, I THINK THIS IS GOOD NEWS FOR US SINCE WE HAD QUITE A FEW PERSONNEL INCREASES LAST YEAR. OUR GENERAL FUND SPENDING IS STILL ON PACE, ALTHOUGH SLIGHTLY OF OUR PRIOR YEAR, AND IT LOOKS LIKE WE'RE WITHIN BUDGET. CITY SPENDING IS A LITTLE BIT HIGHER THAN OUR PRIOR YEAR AS WELL, BUT AGAIN, IT'S STILL IN LINE WITH BUDGET. IF YOU LOOK AT OUR CITY WIDE EXPENDITURES THROUGH HALF THE YEAR, WE'RE AT 42% OF OUR GENERAL FUND SPENDING, WHICH IS A GREAT PLACE TO BE AND IN OUR PERSONNEL, YOU CAN SEE WE'RE, MINOR PERCENTAGE HIGHER. BUT AGAIN, SOMETHING I'VE BEEN LOOKING AT VERY CLOSELY, AND I'M HAPPY TO SEE THAT WE'RE TRACKING WELL WITHIN OUR BUDGET, WHICH MEANS WE WERE ABLE TO PROJECT THE IMPACT OF THESE INCREASES PRETTY WELL SO FAR. AGAIN, WE JUST HAVE THIS OTHER SUMMARY FOR YOU. WE JUST HAVE A NOTE, THIS CAPITAL OUTLAY NUMBER LOOKS VERY, VERY STRANGE. IT'S JUST A FUNCTION OF MOVING THE CAPITAL PROJECTS FUNDS OUT OF THE GENERAL FUND AND INTO OUR ACTUAL CAPITAL PROJECTS FUNDS, WHERE WE SHOULD BE SPENDING THEM, AND SOME ACTUALS HAVE HIT HERE WE NEED TO MOVE THOSE AROUND BUT WE ARE NOT OVERSPENDING OUR CAPITAL. AGAIN, THIS IS BY FUND. THE GENERAL FUND, AGAIN, WE'RE SLIGHTLY AHEAD OF LAST YEAR, BUT IF YOU NOTICE ALL OF THESE ARE BELOW 50% THROUGH DECEMBER, WHICH IS GOOD NEWS FOR SPENDING. I ALSO WANTED TO JUST GO INTO OUR MID YEAR OVERVIEW. WE HAVE A COUPLE OF POINTS IN THE YEAR WHERE OUR MID YEAR OR CARRY OVER REPORTS OVERLAP WITH THESE QUARTERLY REPORTS WE'RE PRESENTING BECAUSE THEY BASICALLY PROVIDE THE SAME INFORMATION. WE'LL HAVE A FULLER REPORT FOR COUNCIL ON NEXT WEEK. WE'LL POST THAT AGENDA TOMORROW. YOU'LL BE ABLE TO SEE THAT. WE CAN SEND IT OUT TO YOU AS WELL. BUT I'M JUST GOING TO SHOW A FEW OF THE HIGHLIGHTS HERE. WE HAVE SOME GOOD NEWS AGAIN ON THE REVENUE SIDE. AFTER SPEAKING WITH OUR CONSULTANTS FOR OUR PROPERTY TAX, IT LOOKS LIKE WE'LL HAVE STRONGER REVENUES THAN PROJECTED. SO PROPERTY TAX AND PROPERTY TAX IN LIEU OF VLF BOLSTERED BY OUR 5.42% ASSESSED VALUE GROWTH. WE EXPECT TO BE ABLE TO INCREASE OUR BUDGET BY ABOUT 1.2 MILLION. THE REST OF OUR TAX SOURCES, WE LOOKED AT THOSE AND WE'VE SPOKEN TO OUR CONSULTANTS, LOOKED AT OTHER TRENDS. WE BELIEVE THOSE SHOULD STAY FLAT. SALES TAX AGAIN IS FLAT. WE THINK IT'LL BE DEFINITELY FLAT THIS YEAR. OUR CONSULTANTS ARE PROJECTING SOME MINOR INCREASES, MAYBE IN THE NEXT FEW YEARS, BUT IT'S A LITTLE BIT IFFY. UTILITY USERS TAX AGAIN. WE HAVE SOME PROJECTIONS FOR THAT AND OUR BUDGET IS RIGHT IN LINE WITH WHERE THEY EXPECT IT TO BE. TOT AGAIN, WE BELIEVE THAT'S ON TRACK. WE'LL BE MONITORING THAT VERY CLOSELY AS THE MONTHS GO BY AND PROPERTY TRANSFER TAX, AGAIN, I THINK WE'RE ACTUALLY AT ABOUT 50% OF OUR BUDGET. BUT AGAIN, WITH MORTGAGE RATES AND MANY OTHER THINGS, WE DO NOT EXPECT ANY INCREASE HERE. THEN FOR REVENUE REVIEW AND OUR CHARGES FOR SERVICES CATEGORIES. WE HAVE GOOD NEWS IN A FEW AREAS. IN PARTICULAR, OUR PARKING FEES AND SOME AMBULANCE FEES. WE'RE GOING TO INCREASE OUR BUDGET BY ABOUT $400,000 BASED ON REVENUE RECEIVED TO DATE AND WE DO HAVE A SMALL OFFSET FOR OUR RECREATION PROGRAMS. AT BUDGET TIME, COUNCIL APPROVED SOME INCREASES FOR OUR PART TIME STAFF, [01:30:04] AND THE HOPE WAS THAT WITH THAT INCREASE, WE'D BE ABLE TO HIRE MORE PART TIME STAFF, AND WE WOULD JUST WEREN'T ABLE TO DO IT FAST ENOUGH TO STAFF OUR RECREATION CLASSES ENOUGH TO RUN AS MANY AS WE WANTED. WE'LL HAVE A SMALL DECREASE THIS YEAR OR YOU KNOW, ACTUALLY IT'S A DECENT SIZE DECREASE THIS YEAR, BUT WE EXPECT THAT TO BE ONE TIME BECAUSE WE HAVE BEEN ABLE TO INCREASE STAFFING IN THAT AREA. SO THE NET REVENUE CHANGES WE'RE RECOMMENDING ARE THE 1.2 MILLION FOR OUR TWO MAJOR TAX SOURCES. >> STEPHANIE? >> SURE. >> IF YOU GO BACK TO SLIDE ONE, THAT TOTAL TAXES. I THOUGHT THAT WAS JUST ABOUT FLAT OR KEEP GOING BACK TO THE VERY FIRST SLIDE, I THINK IT WAS. THERE YOU GO. TAX REVENUE RECEIPTS. IF I ADD THAT UP, I THINK WE'RE ACTUALLY SHORT A FEW DOLLAR AND YOU SHOW ON THIS SLIDE YOU WERE JUST GIVING US THAT WE'RE GOING TO BE UP A MILLION AND TWO. >> A LOT OF THAT IS PROBABLY JUST DUE TO REVENUE TIMING. WE GET DIFFERENT CHUNKS THROUGHOUT THE YEAR AND AGAIN, I'D HAVE TO LOOK BACK AND SEE WHAT WE HAD BOOKED AT THE TIME THAT WE RAN THIS. >> OH, I'M SORRY. UNDER OTHER REVENUES, YOU'VE GOT THAT 2.4 MILLION, THAT MAKES UP THE DIFFERENCE. GOT IT. SORRY. >> YEAH. I THINK ALSO I'M NOT SURE THAT THIS SLIDE SHOWS ALL OF OUR TAX SOURCES. IS THIS ALL OF OUR TAX SOURCES? >> NO. I DON'T THINK IT'S ALL OF THEM. >> YEAH. BECAUSE WE HAVE I GUESS BUSINESSES LICENSE TAXES ON THERE. WE HAVE A FEW OTHER VERY SMALL ONES THAT WE DON'T SHOW HERE BECAUSE THEY'RE NOT MATERIAL. >> YEAH. I MISSED THE 2.4 MILLION ON THIS SLIDE, AND THE MILLION FOUR DISCREPANCY WAS WHAT I CAUGHT. SORRY ABOUT THAT. >> NO. >> IT'S LIKE THE PUBLIC SAFETY AUGMENTATION ONE. >> OH, YES. >> ALWAYS GET TO CHECK THE NUMBERS. SO THIS IS WHAT WE'RE PROPOSING FOR COUNCIL NEXT WEEK. GO IN THE WRONG DIRECTION. AS YOU'RE AWARE, WE ALSO REDO OUR INTERNAL SERVICE PLANS EVERY YEAR. FOR THIS YEAR, WE LOOKED BACK AT OUR 2023/24 ACTUALS. THIS RESULTED IN MODERATE INCREASES TO ALL OF OUR PLANS THIS YEAR. AGAIN, THIS IS SOMETHING THAT WE ANTICIPATED LAST YEAR, PARTICULARLY IN OUR SELF INSURANCE FUND. WE HAD A NICE YEAR WHERE WE HAD SOME DECREASES TO PREMIUMS IN 22/23 AND A COUPLE OF GOOD YEARS OF CLAIMS PAYOUTS. WE KNEW THAT OUR PREMIUMS WERE INCREASING THIS YEAR. AGAIN, WE HAVE ABOUT A 3.2 MILLION DOLLAR OVERALL INCREASE, THAT'S ABOUT 9%. IT'S ACTUALLY A SMALLER PERCENTAGE INCREASE THAN LAST YEAR, IT'S ABOUT THE SAME DOLLAR VALUE, BUT AGAIN, THESE ARE BASICALLY ANTICIPATED COSTS THAT WE THINK WILL MODERATE OVER THE NEXT FEW YEARS BASED ON OUR NEEDS IN THESE AREAS. I'VE PUT A COUPLE NOTES BY EACH OF THESE FOR SELF INSURANCE. AGAIN, THIS IS RELATED TO OUR LIABILITY INSURANCE PREMIUMS, WHICH WENT UP SIGNIFICANTLY. OUR BUILDING OCCUPANCY IS INCREASED RELATED TO ENERGY COSTS, WHICH INCREASED BY 14% LAST YEAR, AND THAT MAKES UP BASICALLY ALL THE DIFFERENCE. IN INFORMATION TECHNOLOGY, OUR DIRECTOR MIKE COOK HAS SUCCESSFULLY REPLACED EVERY COMPUTER IN THE CITY AND MANY OF OUR SYSTEMS SO THE INCREASE IS REPLENISHING SOME OF THAT FUND. AGAIN, OUR NEXT FEW YEARS, WE'RE LOOKING AT A MUCH LOWER EXPENDITURES, SO WE EXPECT THIS TO MODERATE. EMERGENCY COMMUNICATIONS, WE HAVE A LITTLE BIT OF AN INCREASE RELATED TO A CORRECTION WE HAD TO MAKE FROM LAST YEAR. BUT AGAIN, OUR NEXT FEW YEARS, WE DON'T ANTICIPATE LARGE INCREASES. VEHICLE MAINTENANCE, WE ACTUALLY HAVE A VERY VERY, VERY MODEST CHANGE, I THINK IT'S 1%. THIS IS JUST A SMALL INCREASE IN MAINTENANCE COSTS, AND WE ACTUALLY HAVE A SLIGHT REDUCTION IN OUR CONTRIBUTION COST FOR THIS YEAR JUST BASED ON THE SCHEDULES. WE DO ANTICIPATE THIS FUND CONTRIBUTIONS WILL PROBABLY GO UP IN THE NEXT FEW YEARS AND A LOT OF THESE GO IN A CYCLE, BUT FOR THIS YEAR, IT'S PRETTY SMALL AMOUNT. IN OUR OVERHEAD, WE HAVE AN INCREASE THAT'S BASICALLY CONSISTENT WITH PERSONNEL COSTS. THE INCREASE IS ABOUT 7%. IT'S NOT NOTHING, BUT IT'S A MODERATE INCREASE. [01:35:03] MAJOR FACILITY REPAIR IS A VERY SMALL FUND. AGAIN, THIS INCREASED RELATED TO CONSTRUCTION AND ENERGY COSTS, AND OUR CITY FACILITY SEWER FEE REMAINED FLAT. WITH OUR ADDITIONAL COST TO THE GENERAL FUND FOR THESE CONTRIBUTIONS OFFSET BY REVENUE FROM THE OTHER FUNDS FOR OUR OVERHEAD COSTS, WE GET TO A NET 1.9 MILLION DOLLAR GENERAL FUND INCREASE. I HAVE A TABLE THAT JUST SUMMARIZES THESE NUMBERS. AS I MENTIONED, WE'D LIKE TO SPEND SOME TIME THIS YEAR DOING A LITTLE BIT MORE RESEARCH IS THE WRONG WORD, BUT REVIEWING OUR INTERNAL SERVICE FUNDS IN DETAIL. THIS IS SOMETHING THE CITY MANAGER HAS MENTIONED. HE THOUGHT WOULD BE A REALLY GOOD TOPIC FOR THIS COMMISSION TO BE INVOLVED IN SO I EXPECT TO BE BRINGING SOME OF THESE BACK TO THIS GROUP THROUGH THE NEXT YEAR AND TAKING A DEEPER LOOK AT THESE AND WHAT WE'RE DOING MOVING FORWARD. WITH OUR REVENUE AND EXPENDITURES TO DATE, AND WITH OUR PROPOSED CHANGES, WE EXPECT TO END THE FISCAL YEAR AND VERY MUCH AN ESTIMATE WITH ABOUT 2.2 MILLION DOLLAR IN ENDING FUND BALANCE. WE ARE NOT PROPOSING THAT COUNCIL TAKES ANY ACTION WITH THESE FUNDS AT THIS TIME. THERE ARE A COUPLE OF THINGS THAT WE'RE REALLY THINKING ABOUT HERE. ONE IS OUR UNFUNDED LIABILITY CONTRIBUTION FOR 25/26, AS WE KNOW, THAT'S ABOUT 4.2 MILLION, AND THE CITY HAS TO DATE NOT SET ASIDE FUNDING FOR THAT IN ADDITION TO OUR CAPITAL SPENDING THAT SET ASIDE IN OUR RESERVE FUND IF WE WANTED TO DIP INTO THAT. THAT'S A LARGE EXPENSE. WE ALSO NEEDED IN OUR LAST YEAR TO SUPPORT OUR HARBOR TIDELANDS AND HARBOR UPLANDS ENTERPRISE FUNDS FOR THE CAPITAL COSTS OF THE LAST FEW YEARS. WE ANTICIPATE THAT THAT MAY BE NECESSARY AT THE END OF THE CURRENT FISCAL YEAR AS WELL. FOR A FEW MILLION DOLLAR, AGAIN, WE'RE MONITORING SPENDING VERY CLOSELY AND LOOKING AT REVENUES, BUT THIS IS SOMETHING WHERE THE GENERAL FUND MAY NEED TO PUT RESOURCES IN. SO GIVEN THOSE TWO MAJOR ITEMS, IN ADDITION TO THE MYRIAD OF OTHER UNCERTAINTIES OUT THERE, WE'RE RECOMMENDING THAT COUNCIL DOES NOT TAKE FURTHER ACTION TO PROGRAM FUNDS AT THIS TIME. THEN OUR NEXT STEPS, WE'LL GO RIGHT INTO BUDGET INPUT WITH THE CITY MANAGER. WE EXPECT THAT HE WILL BE AT YOUR NEXT MEETING, AND AS USUAL, HE'S GOING TO LAY OUT HIS BUDGET PRIORITIES AND TAKE INPUT FROM THIS COMMISSION. WE'LL LOOK FORWARD TO THAT. THANK YOU. >> I'M GOING TO REFER TO COMMISSIONER JESTE AGAIN. HE ASKED BEFORE IF WE CAN HAVE THE BUDGET DEPARTMENT BY DEPARTMENT. DO YOU HAVE DEPARTMENT BY DEPARTMENT? >> OF COURSE, YES. >> CAN YOU SHARE THAT WITH US? >> SO WHAT INFORMATION WOULD YOU LIKE TO SEE DEPARTMENT BY DEPARTMENT JUST THE REVENUES AND EXPENDITURES? >> SO WE WOULD YOU LIKE TO EXPLAIN OR I CAN? >> MAIN POINT WAS THE INFORMATION TECHNOLOGY. YOU MENTIONED THERE IS NOT MUCH CHANGE. NOW, A COUPLE OF THINGS THAT I'VE BEEN ASKING FOR, WHAT'S YOUR PLAN FOR ANY ATTACKS ON THE DATABASE. THIS IS HAPPENING EVERYWHERE. DO WE HAVE ANY PLAN? SECONDLY, WITH THE NEW TECHNOLOGY, WITH THE ARTIFICIAL INTELLIGENCE, THE ANALYTICS, EVERY TIME WE TALK ABOUT SOMETHING, THERE IS DATA, BUT IT'S HARD TO GET TO IT. WITH AI, WE SHOULD BE ABLE TO GET THAT, VERY, VERY FAST, AND THIS IS ONE THING THAT HAS BOTHERED ME EVER SINCE I CAME ON THIS COMMISSION. WE HAVE THE DATA, BUT WE CANNOT ACCESS IT SO WE'VE GOT TO FIND SOME WAY TO AND THIS IS WHERE THE IT HEAD OF DEPARTMENT I THINK WE NEED TO HAVE HIM OR HER WHO IS MAKE A PRESENTATION AND SPEND SOME TIME WITH US. >> THIS IS NOT WORK ON FINANCE DEPARTMENT, BUT THIS WAS A REQUEST THAT SOMEONE FROM IT DEPARTMENT CAME AND GAVE US [01:40:03] A REVIEW OF WHAT THEY'RE DOING TO ADVANCE OUR TECHNOLOGY. >> SO AS I MENTIONED BEFORE, I'VE BROUGHT THIS UP WITH OUR CITY MANAGER AND WITH OUR IT DIRECTOR. WE'RE ACTUALLY THINKING ABOUT HAVING HIM COME TO THE NEXT MEETING ALONG WITH THE CITY MANAGER, AND HE CAN GIVE A LITTLE OVERVIEW OF HIS WORK AND RESPOND TO YOUR QUESTIONS. >> WE CAN ADD THIS TO THE AGENDA, PLEASE NEXT TIME. >> I WAS SPEAKING TO HIM JUST THIS MORNING ABOUT THIS. >> ALSO CAPITAL IMPROVEMENT PROJECTS BECAUSE THIS IS SOMETHING AGAIN THAT GAVE UP LAST YEAR, AND WE NEED TO FOLLOW UP ON EVERY PROJECT, WHAT WAS THE INITIAL PROJECTION FOR THE TOTAL COST AND HOW MUCH DID WE SPEND WHEN THE PROJECT WAS COMPLETED? >> I BELIEVE I'LL HAVE TO CHECK WITH OUR CAPITAL PROJECTS MANAGER, BUT THE JOINT MEETING WITH THE PUBLIC WORKS COMMISSION, WHERE THEY DISCUSSED THE CAPITAL BUDGET. I BELIEVE NEXT WEEK ALONG WITH OUR MEDIA REPORT, THERE WILL BE A CAPITAL UPDATE AS WELL SO MAYBE THAT'S SOMETHING THAT WE CAN BRING TO THE MEETING WHEN YOU'RE ABLE TO SPEAK WITH THE PUBLIC WORKS DIRECTOR. EXCUSE ME. >> CAN WE PUT THAT ON A CALENDAR TENTATIVELY WHEN THAT WOULD BE? >> WE'LL TAKE A LOOK AT IT. I DON'T KNOW WHEN THAT MEETING SCHEDULED TO BE, BUT WE'LL FOLLOW UP AT OUR NEXT MEETING, WHAT THAT DATE WOULD BE. >> YEAH, AND JUST AS A QUICK NOTE, WE DO HAVE THE DISCUSSION POSSIBLE ACTION FOR MID YEAR AS THE NEXT ITEM. SO I WOULD SUGGEST WE KEEP THE DISCUSSION AROUND THE TWO REPORT, AND THEN WHEN WE GET TO THE NEXT ITEM, WE CAN DISCUSS THE MID YEAR NUMBERS, JUST TO KEEP IT SEPARATED. >> THAT WAS MY FAULT BECAUSE I DID NOT SEPARATE IT. >> YOUR PRESENTATION, DID IT INCLUDE BOTH? >> YES. >> WE DID J2 AND J3 TOGETHER, CORRECT? >> BOTH. >> YES. >> WHO DID ACT ON J2 FIRST? >> YES. >> MOVE RECEIVE AND FILE J2. >> SECOND. >> ALL IN FAVOR. >> AYE. >> MOTION PASS? ON J3. REGARDING THE BUDGET, SHOWING US WHAT YOU HAVE ALREADY. ALL YOU HAVE TO DO IS JUST SHARE THAT WITH US TO DEPARTMENT BY DEPARTMENT BUDGET. >> DO YOU WANT REVENUE AND EXPENDITURE? >> THAT'S USUALLY WHAT I'VE SEEN. >> BUT THERE ARE JUST MANY WAYS TO PRESENT IT, SO I WANT TO MAKE SURE THAT WE'RE GIVING YOU THE INFORMATION THAT YOU'RE LOOKING FOR. ARE YOU LOOKING FOR MORE DETAIL? DO YOU WANT OUR LINE ITEM BUDGET? >> I THINK THAT WILL BE HELPFUL. THAT'S THE ONLY WAY WE CAN GET INFORMATION SO WE CAN GIVE ADVICE. OTHERWISE, WE CAN'T GIVE ADVICE IF WE DON'T HAVE THAT INFORMATION. >> SURE. THAT'S VERY EASY FOR US TO PROVIDE. >> WHEN DO YOU THINK YOU'LL BE ABLE TO SO THAT IT'S ON A CALENDAR AND DEPARTMENT BY DEPARTMENT. >> BESIDES THE BUDGET BOOK, I'M JUST KIDDING. WE CAN DO THAT PRETTY QUICKLY THROUGH KIMS. >> SOMETHING THAT WE CAN SEND YOU WHEN WE GET BACK TO THE OFFICE. >> LET'S DISCUSS NEXT TIME. WILL WE HAVE TIME TO PUT IT ON AGENDA NEXT TIME AND DISCUSS BECAUSE THAT'S WHEN EVERYONE WILL BE ABLE TO ASK QUESTIONS AND UNDERSTAND. I WANT IT ON AGENDA SO WE CAN DISCUSS. >> DISCUSS THE FORMAT THAT YOU'D LIKE IT IN? >> NOT THE FORMAT, BUT IF YOU DO HAVE, YOU SAID, DEPARTMENT BUDGET. >> AS I WAS SAYING, EVERY MONTH, ERIN RUNS REPORTS BY DEPARTMENT, WHICH WE SHARE WITH THOSE ANALYSTS. WHAT'S THE LATEST ONE THAT YOU RAN? IS IT THROUGH JANUARY? >> JANUARY WILL BE THIS UPCOMING WEEK, IT'LL BE DONE. >> WE CAN SEND THAT TO YOU. >> WILL THAT SHOW THE SPEND BY THAT PARTICULAR MONTH AND THE REVENUE BY THAT PARTICULAR MONTH? >> YES. ABSOLUTELY. >> WILL THAT ALSO COMPARE IT TO THE FORECASTED? >> FOR THE BUDGET, YES. THESE ARE REPORTS WE'RE ALREADY RUNNING. THAT WOULD BE VERY SIMPLE TO SHARE WITH THE COMMISSION. >> ALL WE'RE ASKING IS TO SHARE. >> [OVERLAPPING] CONFIRM THAT EVERYTHING IS POSTED, SO IT COMES THROUGH ON THE REPORT. >> YEAH. AGAIN, THIS IS INFORMATION WE PROVIDE TO THE ANALYSTS TO HELP THEM MANAGE THEIR BUDGETS. WE USUALLY WAIT A FEW DAYS AFTER THE START OF THE MONTH, SO WE MAKE SURE ALL THE REVENUE IS POSTED AND EVERYTHING GOES THROUGH. YEAH, WE CAN SHARE THOSE WITH YOU, OR IF YOU WANT THEM TOMORROW, WE CAN SEND YOU DECEMBER'S. >> LET'S PUT IT ON THE AGENDA AND WE'LL LOOK AND DISCUSS TOGETHER AND THEN WE'LL DECIDE HOW WE WANT TO HANDLE IT. ANYTHING ELSE? CAN WE HAVE A MOTION TO ACCEPT AND FILE ITEM J3 MIDYEAR BUDGET? [01:45:06] THERE'S A MOTION. IS THERE A MOTION? >> MOTION TO RECEIVE AND FILE. >> SECOND. >> ALL IN FAVOR? >> AYE. >> ITEM J4. THIS IS SOMETHING I ASKED, IF WE COULD MOVE OUR MARCH AND APRIL MEETINGS INSTEAD OF THE SECOND WEEK OF THE MONTH TO THIRD WEEK OF THE MONTH. IN MARCH, I HAVE A INVESTMENT CONFERENCE I'M GOING TO AND THEN IN APRIL, IT'S MY DAUGHTER'S VACATION TIME. CAN WE SCHEDULE THE MARCH MEETING TO MARCH 20TH AND APRIL MEETING TO APRIL 17TH, PLEASE. I'VE ALREADY CHECKED WITH THE CLERK'S OFFICE. THE ROOM IS AVAILABLE. ALL I NEED IS YOUR PERMISSION. >> THE CITY MANAGERS AVAILABLE BECAUSE THE MARCH MEETING IS WHEN HE'S COMING. >> I BELIEVE SO. >> YEAH. I HAD SENT AN EMAIL TO THEIR OFFICE. I HAVE CONFIRMED WITH STAFF. >> WE'LL DOUBLE CHECK WITH HIM, BUT HE SHOULD BE. >> WE JUST HAVE A LOT OF STUFF SHOWING UP IN MARCH, SO I JUST WANT TO MAKE SURE. >> I WOULD JUST LIKE TO SAY THAT I THINK WE'VE GOT A PROVISION IF YOU CAN'T BE HERE. >> I WOULD LIKE TO BE HERE. >> WELL, I GUESS THE OTHER QUESTION IS THIS, THOUGH. NOW, I'VE TAKEN MY SCHEDULE AND I SAID I WILL BE AVAILABLE FOR THESE WEEKS AND I HAVE MADE THAT COMMITMENT. I DON'T KNOW WHAT THE IMPACT IS GOING TO BE FOR ME. THEN YOU WILL BE HERE AND I WON'T BE HERE. ON THIS ONE, I'M GOING TO HAVE TO SAY, I DON'T WANT TO HAVE THE DATES CHANGED. I THINK WE OUGHT TO MAKE IT HAVE A POLICY THAT IF SOMEONE'S NOT GOING TO BE HERE. >> I'M ONLY ASKING. >> THEY MAKE A DECISION. WELL, I'M TRYING TO GET A DISCUSSION ON IT. >> JUST AS A NOTE TOO, WE ARE MISSING COMMISSIONER CASTLE, BUT IF YOU WANTED TO, YOU COULD HOLD YOUR REGULAR MEETING AND HAVE A SPECIAL MEETING. I JUST WANTED TO THROW THAT OPTION OUT THERE. >> NO. WE DON'T NEED TWO MEETINGS IN A MONTH. >> NO. I JUST THINK ANY TIME ANYONE IS GOING TO BE OUT THAT WE SHOULD JUST RESPECT THE SCHEDULE THAT WE CURRENTLY HAVE, AND THEY HAVE TO MAKE A DECISION WHETHER THEIR OTHER ACTIVITY IS WORTH MORE THAN BEING HERE OR NOT WORTH AS MUCH AS BEING HERE, I GUESS, BECAUSE I DON'T KNOW HOW IT'S GOING TO IMPACT ME, SO I'LL HAVE TO SAY THAT I WOULDN'T BE IN FAVOR OF DOING THAT WITHOUT KNOWING THAT. >> ANYONE ELSE DOESN'T WANT TO DO THE THIRD WEEK OF MARCH AND APRIL? >> SORRY, I APOLOGIZE. WE ACTUALLY WILL NEED TO MOVE OUR MARCH MEETING IN ANY CASE, AND I WASN'T GOING TO BRING IT UP BECAUSE YOU'D ALREADY PROPOSED IT. BUT OUR REGULARLY SCHEDULED MEETING IS A DAY THAT THE CITY CLERK WILL BE COUNTING BALLOTS IN THIS ROOM AND MAY NOT BE DONE IN TIME FOR OUR MEETING. WE WILL HAVE TO FIND A DIFFERENT MARCH DATE, SO WE CAN FIND OUT WHAT THAT WOULD BE. THERE'S NO ISSUE FOR THE POLL YET. >> 20TH IS THE DATE. I LOOKED AT THE CITY'S CALENDAR AND THAT WAS PRETTY MUCH THE ONLY THURSDAY AVAILABLE. THE OTHER THURSDAYS WERE BOOKED. THERE WAS A REASON I CHOSE THAT DATE BECAUSE IT WAS AVAILABLE. I GUESS FOR MARCH WE HAVE NO CHOICE BUT TO MOVE. EVERYONE AGREES? >> IF WE HAVE TO MOVE, WE MAY AS WELL MOVE IT BY A WEEK, SO MARCH 20TH. >> YEAH. ISN'T APRIL NORMALLY OUR SPECIAL JOINT MEETING WITH PUBLIC WORKS COMMISSION? >> I DO NOT REMEMBER OFF THE TOP OF MY HEAD. >> YEAH. I'LL HAVE TO CONFIRM. I DON'T KNOW THE EXACT DATE FOR WHAT WE SCHEDULED FOR THIS YEAR. >>THAT PARTICULAR WEEK, THE SCHOOL IS OUT. >> [OVERLAPPING] USD SPRING BREAK, SO THAT'S WHY [OVERLAPPING]. >> THAT'S WHY I WANTED TO CHANGE APRIL BECAUSE THE SCHOOL IS OUT, SO WE'RE ALL GOING TO BE OUT. >> [INAUDIBLE] KIDS SCHOOL YEARS. >> TWO OF US MIGHT BE OUT. [OVERLAPPING] THEY WANT TO GO SOMEWHERE ELSE. >> IT'S UNLIKE UNSEALED OFFICE. >> THAT'S THE OLD TIMES. I THINK IF WE ARE GOING TO HAVE JOINT MEETINGS, IT MIGHT AFFECT OTHER PEOPLE TOO BECAUSE MOST OF US HAVE FAMILIES AND IT'S VACATION TIME. >> I BELIEVE APRIL IS WHEN WE USUALLY HAVE OUR JOINT MEETING, AND IF WE DON'T HAVE A SCHEDULE YET, WE JUST DON'T KNOW. >> WHAT IF WE DO THIS? WHAT IF ERIN AND I CHECK ON OUR APRIL MEETING AND WE CAN SEND IT TO THIS COMMISSION AND WE CAN PUT THE DATE BACK ON THE AGENDA AS AN ITEM FOR OUR MARCH MEETING? DOES THAT WORK? >> WE AGREE THAT WE'LL MEET MARCH 20TH? IS THAT CONSENSUS? ALL IN FAVOR? >> AYE. >> MOTION AND THEN WE'LL DO ALL IN FAVOR. >> MOTION TO HAVE THE MARCH MEETING ON MARCH 20, [01:50:02] THIRD WEEK OF THURSDAY. >> SECOND. >> I'LL MAKE A MOTION. >> SECOND. ALL IN FAVOR? >> AYE. >> YES. BECAUSE THAT'S THE IMPORTANT ONE. THAT'S WHEN OUR CITY MANAGER IS GOING TO BE HERE. NOT THAT NONE OF THEM ARE IMPORTANT. THEN APRIL, THIS ROOM IS AVAILABLE, I HOPE THAT YOU GUYS ARE HOLDING IT. BUT WE'LL DECIDE ON MARCH 20, IF APRIL 17 WORKS BETTER BECAUSE APRIL 12TH IS THE SPRING BREAK FOR KIDS. WE ARE ON NUMBER K. >> SORRY, I DON'T WANT TO INTERRUPT YOU. WE HAVE NO PUBLIC COMMENTS OR E-COMMENTS. SORRY ABOUT THAT. >> NO COMMENTS? I'M CHANGING THE DATE. [LAUGHTER] ITEM K, COMMISSION MEMBER ITEMS, [K. COMMISSION MEMBER ITEMS AND FUTURE COMMISSION AGENDA TOPICS] AND FUTURE COMMISSION AGENDA TOPICS. ANYONE, ANYTHING, NOTHING? >> NOTHING. >> I HAVE A LIST. I AM NOT KIDDING. HERE WE GO. I'M GOING TO PUT A LIST TOGETHER OF ITEMS THAT WE WANT TO ACCOMPLISH OR WE WANT TO DISCUSS, AND THEN WE PRIORITIZE THAT LIST. IF YOU HAVE ANY WISH LIST ITEMS, SEND IT TO ME OR YOU CAN TELL ME DURING THE NEXT MEETING BECAUSE I KNOW COMMISSIONER JESTE HAS A LOT OF IDEAS AND HE HAS A LOT OF REQUESTS, AND THEY'RE ALL GOOD. THAT'S WHY I WANT TO MAKE THAT LIST SO NOTHING GETS FORGOTTEN. >> [INAUDIBLE] >> YES. WE'LL HAVE THAT LIST AND THEN WE'LL ABLE TO PRIORITIZE FOR OURSELVES AND ALSO FOR THE STAFF. >> WAIT A MINUTE. YOU WANT TO PUT ON THE AGENDA FOR OUR NEXT MEETING THAT WE'RE GOING TO DISCUSS A LIST OF PRIORITY ITEMS THAT THE COMMISSION WANTS TO DEAL WITH, BECAUSE IF WE DON'T PUT IT ON THE AGENDA, WE CAN'T DISCUSS IT. >> CORRECT. YOU'RE RIGHT. THAT'S A GOOD IDEA. LET'S PUT IT ON THE AGENDA. IF WE DON'T HAVE THE LIST READY YET, WE WILL SKIP IT TO THE NEXT TIME. YES. CAN WE HAVE THAT ON THE AGENDA, PLEASE? LIST OF PRIORITIES, I GUESS WE CAN CALL IT LIST OF PRIORITIES. >> NOT QUITE SURE I UNDERSTAND EXACTLY WHAT YOU'RE LOOKING FOR. >> WHAT WE WANT TO ACCOMPLISH IN THIS COMMISSION. >> SO DISCUSS GOALS FOR THE COMMISSION? >> DISCUSS GOALS. YES. >> OR URGENT TOPICS FOR THE COMING YEAR OR SOMETHING LIKE THAT. >> USUALLY THE COMMISSIONS AND COMMITTEES, FOR US, THE STAFF LIAISON IS THE FINANCE DIRECTOR. THEN THEY ALSO HAVE A LIAISON WITH COUNCIL MEMBERS. IF WE NEED HELP, WE HAVE A QUESTION, ANYTHING COUNCIL RELATED, IF WE WANT TO TAKE AN ITEM TO THE COUNCIL. THERE'S ALWAYS A LIAISON IN MY OTHER WORLD. >> TRUE JOB. >> NO. SO THAT SHE REPRESENTS STAFF, AND THEN WE HAVE A LIAISON, A COUNCIL MEMBER WHO SUPPORTS THAT PARTICULAR COMMITTEE OR COMMISSION. FOR EXAMPLE, WE HAVE A LETTER NOW THAT WE WANT TO SEND TO THE COUNCIL, THAT PERSON IS THE ONE THAT CAN ADVISE US HOW THE COUNCIL WOULD LIKE TO PROCEED, WHAT'S THE BEST WAY TO HAVE THIS DISCUSSION. WE HAVE JUST ONE PERSON SUPPORT FROM COUNSEL. ANY THOUGHTS? >> A COUNCILOR, YOU MEAN, AN ACTUAL COUNCIL? >> COUNCIL COUNCIL MEMBER. ONE OF THE COUNCIL MEMBERS WOULD BE ASSIGNED TO A COMMISSION, THAT SOMEONE THAT WE CAN GO AND BE OUR LIAISON BETWEEN THE COUNCIL AND US. IS IT SOMETHING THEY DON'T DO THAT IN REDONDO BEACH? >> NOT THAT I KNOW OF. NO. >> NO. I'M NOT GOING TO CHANGE REDONDO POLICY. >> IN A LOT OF OTHER CITIES, THE CITY TREASURER IS PART OF, AND OFTEN CHAIRS, THE BUDGET AND FINANCE COMMISSION, AND THAT'S OFTEN THE LIAISON TO THE CITY COUNCIL. THAT'S THE CITY TREASURER. THE ONLY THING I'M FAMILIAR WITH IS WORKING THROUGH OUR FINANCE DIRECTOR IN ORDER TO COMMUNICATE WITH CITY COUNCIL. >> THAT WILL JUST LEAVE IT THE WAY IT IS. ONE OTHER ITEM, I SAW THE POSTING OF THE FINANCE DIRECTOR FOR THE CITY THAT THEY'RE HIRING AND INTERVIEWING. [01:55:05] AGAIN, IN MY EXPERIENCE, THE COMMISSION PARTICIPATES IN AN INTERVIEW PROCESS. THERE ARE TWO STAGES OF INTERVIEW. THERE IS THE INITIAL INTERVIEW, AND THEN THERE'S THE INTERVIEW WITH THE CITY MANAGER. DURING THE INITIAL INTERVIEW, THEY INVITE OTHER FINANCE FOLKS FROM OTHER CITIES, AND CAN BE 5-6 PEOPLE. THAT'S THE INITIAL INTERVIEW INTERVIEWING TO MAKE SURE THEY'RE REALLY LOOKING FOR SKILLS TO SEE IF THEY CAN PASS ON TO THE NEXT LEVEL. I WAS THINKING THAT WE NEED ONE OR TWO REPRESENTATIVES FROM THIS COMMITTEE BECAUSE WE NEED TO SELECT A STRONG FINANCE DIRECTOR FOR THE CITY. I THINK WE JUST NEED SOMEONE EXPERIENCED AND WE CAN GIVE FEEDBACK TO THE CITY INTERVIEWING. YOU DON'T HAVE TO INTERVIEW. >> IN MY EXPERIENCE HERE, HIRING A PERSONNEL IS UP TO THE CITY MANAGER AND IT'S BETWEEN THE CITY MANAGER AND THE CITY COUNCIL. THEY'VE NEVER INVOLVED OUR COMMISSION BEFORE. >> THEY DO THE FINAL INTERVIEW. >> WELL, THEY DO ALL OF THE INTERVIEWS. IF THERE'S A WRITTEN EXAM, THEY EVALUATE THAT. IF THERE'S AN ORAL EXAM, IT'S THE CITY MANAGER THAT'S IN CHARGE OF IT. THEN IT'S UP TO THE CITY MANAGER IF THEY WANT TO SELECT PEOPLE FROM OUTSIDE AGENCIES TO PARTICIPATE IN THAT PANEL. >> YES. >> THAT HAS NEVER BEEN OUR JOB. >> I HAVE NEVER SEEN IT HAPPEN IN ANY COMMISSION, IN THIS COMMISSION OR PUBLIC SAFETY. >> THAT'S SOMETHING WE CAN SUGGEST. BECAUSE WE HAVE A LOT OF GREAT MINDS IN THIS GROUP. I WOULD LIKE TO SUGGEST THAT THEY CONSIDER TO HAVE ONE OF US PARTICIPATE IN THAT AREA. >> I'M NOT SO SURE IF THAT'S SUPPOSED TO BE OUR RESPONSIBILITY OR SOMETHING WE CAN CONTRIBUTE TO. >> I THINK WE'LL FIND OUT WE'RE OVERSTEPPING OUR BOUNDS ASKING FOR THAT. TO BE INVOLVED IN HIRING DECISIONS OF THE CITY IS A LITTLE MUCH, I THINK. >> SHOULD WE SET THIS FOR A BROADER DISCUSSION BECAUSE I DON'T KNOW? >> NO, BECAUSE THEY'RE PROBABLY GOING TO INTERVIEW IN THE NEXT FEW WEEKS. >> NO. THAT'S ALL I HAVE. >> YOU NEED A MOTION. >> I JUST HAVE A REAL QUICK QUESTION. >> YES. >> FOR OUR INTERIM FINANCE [NOISE]. >> YES. >> WITH THE CONSEQUENCES OF THE FIRE PROBABLY WEIGHING PRETTY HEAVY ON LA COUNTY, ARE THERE SOME GRANTS THAT WE'RE LOOKING AT THAT MIGHT BE AFFECTED? I'M NOT REALLY ASKING THE QUESTION SPECIFICALLY, OTHER THAN JUST MAKING A GENERAL COMMENT. AS YOU'RE THINKING ABOUT THE BUDGET PROCESS, MAYBE WE'LL HAVE TO CONTRIBUTE MORE TO AN ONGOING PROJECT THAT WAS HERE TOO FUNDED BY VIRTUE OF GRANT FROM THE COUNTY OR SOMETHING. I DON'T KNOW IF THERE'S ANY OF THIS. >> I THINK THAT'S A GREAT POINT THAT HASN'T COME UP FOR ANY OF OUR EXISTING GRANTS OR FUNDING TO DATE. BUT I THINK IT'S DEFINITELY CONSIDERATION WHEN WE LOOK AT IT. >> BECAUSE IT APPEARS IT'S GOING TO BE A LONG TERM PROPERTY TAX REDUCTION, IF THAT'S AN UNDERSTATEMENT FOR THE COUNTY. >> NO, THAT'S SOMETHING WE'RE DEFINITELY WATCHING. >> VERY GOOD. THANK YOU. >> THANK YOU. DO WE HAVE A MOTION TO ADJOURN THE MEETING? >> SO MOVE. >> SECOND. >> ALL IN FAVOR? >> AYE. >> ADJOURNED AT 8:30. * This transcript was compiled from uncorrected Closed Captioning.