[A. CALL MEETING TO ORDER]
[00:00:05]
CITY HALL OF REDONDO BEACH. CAN WE HAVE ROLL CALL, PLEASE? YES. COMMISSIONERS JESTE. HERE. COMMISSIONERS SHERBIN.
HERE. COMMISSIONER RAMCHARAN. HERE. COMMISSIONERS SAMPLES. HERE. COMMISSIONER, SORRY CHAIR ALLEN. HERE. OK AND WE HAVE COMMISSIONER WOODHAM AND COMMISSIONER MARIN ABSENT TODAY.
CAN WE PLEASE STAND FOR A SALUTE OF THE FLAG? READY? BEGIN.
THANK YOU. YOU MAY BE SEATED. DO WE HAVE A MOTION TO APPROVE THE ORDER OF THE AGENDA,
[D. APPROVE ORDER OF AGENDA]
PLEASE. SO MOVED. YEAH. I'LL CHECK WITH GREG.YEAH. ANY SECONDS. I SECOND ALL IN FAVOR? AYE.
ANY NAYS? MOTION PASSED UNANIMOUSLY IN FAVOR.
[E. BLUE FOLDER ITEMS - ADDITIONAL BACK UP MATERIALS]
ARE THERE ANY BLUE FOLDER ITEMS, PLEASE? YES, YES WE DO.OH, HOLD ON ONE SECOND. YES, WE DID HAVE A BLUE FOLDER ITEM.
IT WAS EMAILED THIS WEEK AND IT WAS INCLUDED IN THE AGENDA PACKET.
SO IT IS FROM THE CITY TREASURER'S REPORT. SO IT WILL BE INCLUDED WHEN THEY DO THEIR ITEM.
THANK YOU. ITEM F, DO WE HAVE A MOTION TO APPROVE THE CONSENT CALENDAR PLEASE OR ANY COMMENTS.
[F. CONSENT CALENDAR]
MOVE TO APPROVE. DO WE HAVE A SECOND? SECOND.SECOND. ALL IN FAVOR? AYE. ANY NAYS? MOTION PASSED UNANIMOUSLY. ITEM G. OH, NO. WE COULD GO TO ITEM H.
[H. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS]
SORRY. PUBLIC TRANSPORTATION AND PUBLIC PARTICIPATION.ARE THERE ANY PUBLIC PARTICIPATION, PLEASE? YOU HAVE, AND I'LL GO AHEAD AND READ THIS.
EACH SPEAKER WILL BE PERMITTED TO SPEAK ONLY ONCE.
WRITTEN REQUESTS, IF ANY, WILL BE CONSIDERED FIRST UNDER THIS SECTION.
ARE THERE ANY WRITTEN REQUESTS OR ANYONE ON THE ZOOM? SO THERE ARE NO COMMENTS ON ZOOM? THERE ARE NO COMMENTS.
NO. E-COMMENTS, BUT WE DO HAVE A MEMBER FROM THE PUBLIC HERE THAT WOULD LIKE TO SPEAK.
YOU CAN GO AHEAD. YEAH. THANK YOU. GOOD EVENING.
COMMISSION COMMISSIONERS. THANK YOU FOR THE OPPORTUNITY TO SPEAK.
I'M WONDERING, YOU KNOW, BUDGET AND FINANCE REVENUE IS VERY IMPORTANT TO THE CITY OF REDONDO BEACH.
I'M AMAZED THAT I'M THE ONLY PERSON HERE. ISN'T THAT AMAZING? ANYWAY, ON THE CITY WEBSITE, I SAW THAT THERE'S A LOT OF FINANCIAL DETAIL.
I WAS HAPPY TO SEE THAT. SO I WAS EXCITED BECAUSE I WANTED TO DO SOME ANALYSIS.
THEN I DISCOVERED THE FIRST PROBLEM THE NUMBERS DON'T GO PAST FISCAL YEAR 21-22, AND THERE WAS A LOT OF DETAIL I COULDN'T FIND, BUT I WAS WONDERING, WHY DOESN'T IT GO PAST THOSE TWO YEARS? I MEAN, THERE'S TWO MORE YEARS. IT'S AMAZING.
MAYBE THERE'S A GOOD EXPLANATION FOR THAT. FOR EXAMPLE THE LEASE REVENUE FROM THE YACHT CLUBS.
I'M KIND OF INTERESTED IN THE RELATIVE EXPENSE AND REVENUE PICTURE AT THE HARBOR.
SO I PUT IN A PUBLIC INFORMATION REQUEST, AND I'M WONDERING IF THAT'S THE WAY TO GO.
I'M KIND OF INTERESTED IN DOING MY OWN RESEARCH ABOUT THAT PARTICULAR ISSUE.
ALSO, I'M INTERESTED IN THE REVENUE EFFECT OF SOME BIG PROPERTY CHANGES TAKING PLACE.
BIG LOTS, FOR EXAMPLE IS THAT PROPERTY IN REDONDO OR HERMOSA? I THINK IT'S IN REDONDO. IT'S DEAD. I UNDERSTAND PEPBOYS IS CLOSING.
THAT'S A BIG PIECE OF ARTESIA BOULEVARD, AND RITE AID WILL BE CLOSING PROBABLY THIS YEAR.
THEY SEEM TO BE YOU KNOW, KIND OF GOING AWAY.
[00:05:03]
ALSO, THE GALLERIA PROPERTY SEEMS TO HAVE BECOME A PING PONG BALL PLAYED BY PRIVATE EQUITY FIRMS TO CREATE TAX WRITE OFFS, AND IT SEEMS THE CITY IS SITTING AROUND AND ALLOWING THAT TO HAPPEN.THE GENERAL PLAN AND THE AACAP WILL BE COMING UP FOR A VOTE.
I'D LIKE TO KNOW WHAT I'M VOTING ON. FINANCIAL INFORMATION AVAILABLE TO THE PUBLIC FOR THESE PLANS SEEMS KIND OF SPARSE, AND , YOU KNOW, IT SEEMS LIKE A LOT OF BEAUTIFICATION, BUT REALLY NOTHING.
THAT SEEMS TO HAVE A REAL ECONOMIC BENEFIT. I'D LIKE TO DO SOME ANALYSIS ABOUT THAT, AND TO BE FRANK, SOMETIMES THE VOTERS ARE ASKED TO MAKE DECISIONS ON THINGS THEY DON'T HAVE INFORMATION ON.
THAT WOULD BE VERY INTERESTING. THANK YOU. THANK YOU.
WE'LL ASK THE FINANCE DIRECTOR TO FOLLOW UP WHAT'S ON THE WEBSITE.
GOOD. THANK YOU. YOU'RE WELCOME. IS IT APPROPRIATE FOR ME TO ANSWER NOW? YES. YES, PLEASE. COME UP HERE. DON'T YOU SIT OVER THERE? AREN'T YOU? YEAH, I SAID FINE. YOU USUALLY SIT THERE.
OKAY, WELL YOU DON'T YOU DON'T HAVE TO SAY ANYTHING, BUT IF YOU'RE VOLUNTEERING TO SAY SOMETHING, YOU'RE MORE THAN WELCOME TO. YOU CAN ANSWER QUALIFYING IN A QUALIFYING WAY.
I DON'T KNOW WHY IT'S NOT THERE LOOKING AT HIM? I DON'T KNOW WHAT SHE'S LOOKING AT YOU IN THE MIDDLE OF THE ROOM, SO IF YOU WOULD LIKE TO RESPOND, YOU ARE MORE THAN WELCOME TO RESPOND.
SURE, IF YOU WOULD LIKE TO RESPOND, BUT YOU DON'T HAVE TO.
I'LL JUST SAY THANK YOU SO MUCH FOR THE QUESTION.
THERE ARE A COUPLE A COUPLE THINGS GOING ON WITH THAT, REALLY. IT'S THAT THE CITY HASN'T USED THIS TOOL ACTIVELY FOR SEVERAL YEARS, SO WE JUST HAVEN'T UPDATED THE DATA. THAT'S THE SIMPLE ANSWER.
WOULD YOU BE ABLE TO FIND OUT WHEN IT WILL BE UPDATED? IT'S ON OUR WEBSITE. YEAH, IT'S ON OUR WEBSITE AND IT'S A TOOL CALLED OPENGOV.
SO AGAIN, THIS IS SOMETHING THE CITY BROUGHT UP AND STARTED USING. WE'VE MOVED AWAY FROM IT A LITTLE BIT, BUT WE DO STILL HAVE ACCESS TO IT TO THE LICENSE.
SO IT'S THERE'S NO INTENT TO OBFUSCATE THE DATA FROM THOSE FEW YEARS.
WE JUST, YOU KNOW, HAVE MOVED A BIT AWAY FROM THAT PRODUCT.
IT HASN'T BEEN A HIGH PRIORITY TO UPDATE, BUT THERE'S NO REASON WE CAN'T DO IT.
I THINK HE WAS SAYING THAT THERE IS NO DATA THAT HE WAS LOOKING FOR.
YEAR 20. THE CURRENT DATA. EXACTLY. THAT'S WHAT I'M SAYING.
SO I'M JUST CURIOUS WHAT RESIDENTS DO THEN IF THEY WANT TO SEE THAT DATA AND IT'S NOT THERE, IS IT GOING TO BE UPDATED ONE DAY OR WE'RE JUST CAN UPDATE THAT? I MEAN, THE INFORMATION IS AVAILABLE IN OUR BUDGET DOCUMENT.
SO THAT INFORMATION IS IN A BUDGET BOOK THAT HE'S LOOKING FOR.
YEAH. CAN I GO ONLINE AND SEE IT? THAT'S WHAT I'M INTERESTED IN.
WELL, I JUST WANT TO INTERRUPT THIS A LITTLE BIT, BECAUSE IT WAS IT WAS A SIMPLE HE WAS ASKING A SIMPLE QUESTION AND I KNOW WE DON'T HAVE TO ANSWER, BUT I THOUGHT IT WAS A SIMPLE ANSWER THAT WE COULD HAVE TOLD HIM.
EITHER WE'RE GOING TO PUT THE ANSWER ON THE WEBSITE, OR IT'S THERE AND IT'S LOCATED IN THIS AREA, RIGHT? I JUST I DON'T THINK WE CAN GO INTO TOO MANY QUESTIONS OR DISCUSSIONS, NOT A DISCUSSION.
IT'S A SIMPLE QUESTION. YEAH, WE GOT SEVERAL QUESTIONS.
IT'S A SIMPLE QUESTION. IS THAT IS THAT INFORMATION THAT HE CAN FIND ON THE WEBSITE CURRENTLY OR NO? THE EXACT INFORMATION FOR LATER FISCAL YEARS IS NOT CURRENTLY AVAILABLE ON THE WEBSITE FORMAT ON THE WEBSITE, AS I STATED. IS IT ON THE WEBSITE IN A DIFFERENT FORMAT? NOT THE A GAIN, I'VE NOT SAT NEXT TO HIM LOOKING AT THE DATA HE'S LOOKING FOR, BUT THE EXACT DATA AVAILABLE ON OPENGOV IS NOT AVAILABLE IN ANOTHER FORM ON THE WEBSITE AT THIS POINT IN TIME, SO THEY DO NOT.
I'M GOING, SO THEY DO NOT. THE STAFF IS TELLING US WE DO NOT HAVE THAT INFORMATION.
THAT'S WHAT I'M GATHERING ON OUR WEBSITE THE WAY SPECIFIC INFORMATION IN THAT SPECIFIC FORMAT, THERE IS AVAILABLE INFORMATION ABOUT THE CITY'S BUDGET AND SPENDING AND OUR PROGRESS TO THAT POINT.
[00:10:10]
FOR THEM TO USE AND I THINK THAT'S THAT IS SOMETHING THAT RIGHT NOW .IS THAT SOMETHING YOU WOULD LIKE TO PUT ON THE AGENDA NEXT TIME? YEAH. YES. OKAY. LET'S DO THAT. OKAY. WE'LL DO THAT.
ALL RIGHT. WE THANK YOU FOR YOUR COMMENT, BY THE WAY.
THANK YOU FOR FOLLOWING UP. NEXT ITEM I ITEMS CONTINUED FROM PREVIOUS AGENDA.
[I. ITEMS CONTINUED FROM PREVIOUS AGENDAS]
I BELIEVE THIS IS THE LONG TERM PLANNING THAT WE WERE TALKING ABOUT, AND WE DO NOT HAVE ANY DOCUMENTS ON THIS.ANY ATTACHMENT ON THIS? IS THIS SOMETHING THAT YOU WOULD LIKE TO DISCUSS NOW OR.
WE PUT IT ON A DIFFERENT DAY. LONG TERM PLANNING.
IS THERE ANYTHING THAT WE WANT TO DISCUSS? I HAVE A NOTE ABOUT THE HOMELESS ACCOUNTING.
I HAVE A NOTE TO MAKE SURE IT'S ON THE AGENDA NEXT TIME.
DO WE NOT HAVE A PRESENTATION FOR THAT? SO AGAIN, THIS IS ONE OF THE ITEMS THAT THE COMMISSION HAD ASKED US TO JUST KEEP AS A REPEATING ITEM ON THE AGENDA UNTIL WE ADDRESS IT. OKAY. YEP.
OKAY. YEAH. THEN PARDON ME. WHAT I'D LIKE TO SUGGEST THEN IS THAT WE PUT COMMISSIONER JESTE HAD A GOOD POINT ABOUT THE HELPLESS ACCOUNTING OR HOMELESS ACCOUNTING.
DO WE NEED TO CONTINUE TO SAY WE'RE GOING TO CONTINUE THAT ON THE AGENDA? THIS ISN'T THE PLACE TO DO. WE'RE GOING TO DO THAT ON ITEM K.
OKAY. ON ITEM K, IT'S TOWARDS THE END. OKAY. SO WE'LL CIRCLE BACK TO THIS.
YEAH. ALRIGHTY. LET'S GO TO ITEM J. CITY TREASURER'S QUARTER THREE FISCAL YEAR 2024-2025 REPORT,
[J. ITEMS FOR DISCUSSION PRIOR TO ACTION]
AND CITY TREASURER EUGENE SOLOMON. THANK YOU, MADAM CHAIR.EUGENE SOLOMON REDONDO BEACH, CITY TREASURER.
MEMBERS OF THE COMMISSION AND THE GENERAL PUBLIC.
INTRODUCE YOU TO TWO PEOPLE. WE HAVE GREG BALLS, WHO'S WITH METER INVESTMENTS.
MR. NILESH MEHTA, WHO WILL BE GOING THROUGH THIS WITH YOU.
SO I'D LIKE TO ASK NILESH TO PLEASE GO FORWARD.
THANK YOU. WELCOME, COMMISSIONER RAMCHARAN FOR THE TO THE COMMITTEE.
THANK YOU. SO WE DO THIS ON A QUARTERLY BASIS, AND I'LL GO OVER THE PRESENTATION AND G REG, CAN YOU HEAR US? ARE YOU ON ZOOM? I AM ON ZOOM, AND I AM HERE.
PERFECT, PERFECT. SO QUARTERLY ADMIN REPORT CONSISTS OF THE PORTFOLIO SUMMARY REPORTING GUIDELINES, INVESTMENT REPORT BY METER INVESTMENT WHICH INCLUDES THE PORTFOLIO SUMMARY, POLICY COMPLIANCE ACTIVITY REPORT AND THE ECONOMIC AND MARKET UPDATE.
SO THAT'S PART OF THE ATTACHMENT WITHIN THE PACKET, AND THEN ALONG WITH THAT WE HAVE THE POWERPOINT PRESENTATION WHICH GOES OVER THE OBJECTIVES AND GUIDELINES, POLICY COMPLIANCE, QUARTERLY PERFORMANCE, CASH FLOW ANALYSIS, MATURITY DISTRIBUTION TRADING ACTIVITY AND FISCAL IMPACT. KEY INVESTMENT OBJECTIVES FOR MUNICIPAL INVESTING.
THE CITY TREASURER MAINTAINS THE CITY CASH FLOWS WHILE EARNING A COMPETITIVE RATE OF RETURN ON THE INVESTMENTS WITHIN THE CONSTRAINTS OF THE CITY'S INVESTMENT POLICY AND STATE LAW. IT'S IMPORTANT TO KEEP IN MIND SAFETY, WHICH IS PROTECTION OF PRINCIPAL LIQUIDITY WHICH IS PROVIDING NECESSARY LIQUIDITY TO COVER BOTH ONGOING AND UNEXPECTED CASH NEEDS, AND FINALLY, YIELD, WHICH IS TO MAXIMIZE EARNINGS.
INVESTMENT MANAGERS OBJECTIVE IS TO EARN A REASONABLE RATE OF RETURN ON THE CITY'S INVESTMENTS, WHILE PRESERVING CAPITAL IN THE OVERALL PORTFOLIO.
IT SHOULD NEVER BE THE INVESTMENT MANAGERS GOAL TO EARN A MAXIMUM RETURN ON THE CITY'S PORTFOLIO,
[00:15:04]
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, THEY'RE NOT FOLLOWED, OR OVERSIGHT IS INADEQUATE. QUESTIONS TO ASK IS DO YOU REVIEW THE INVESTMENT POLICY? DO YOU UNDERSTAND THE CITY'S INVESTMENT PROGRAM? DO YOU RECEIVE AND REVIEW PERIODIC INVESTMENT REPORTS? ARE THEY CLEAR, CONCISE, AND READABLE AND FINALLY, DO YOU FULLY UNDERSTAND THEM? SO THIS SLIDE GOES OVER THE COMPLIANCE FOR THE PORTFOLIO.
AS YOU CAN SEE ON THE RIGHT COLUMN WE WERE COMPLIANT WITH REGARDS TO THE INVESTMENT POLICY ON ALL OF THE DIFFERENT FACTORS. THIS SLIDE GOES OVER THE QUARTERLY PERFORMANCE QUARTER BY QUARTER IN COMPARISON TO PREVIOUS QUARTERS.
SO IMPORTANT THING TO NOTE IS THE LAIF YIELD IS HOLDING STEADY AT 4.31 AND IN PREVIOUS QUARTERS IT WAS AROUND FOUR AND A HALF.
SO IT HAS BEEN DECLINING SLIGHTLY, AND THEN THIS IS A COMPARISON TO PREVIOUS PREVIOUS FISCAL YEARS EARNINGS AND RETURNS.
SO YOU GET AN IDEA ABOUT HOW THE CITY WAS DOING LAST FISCAL YEAR IN COMPARISON TO THIS FISCAL YEAR.
AS YOU CAN SEE, QUARTER THREE AROUND THIS TIME.
INTEREST EARNED YEAR TO DATE WAS 2.023 MILLION.
IN COMPARISON, INTEREST EARNED YEAR TO DATE 1.04 MILLION.
SO WE ARE SEEING CHANGES IN THE INTEREST EARNED IN COMPARISON TO THE PREVIOUS FISCAL YEAR.
TOTAL INVESTMENT PORTFOLIO WAS 103 MILLION AT THIS TIME LAST YEAR, AND WE'RE CURRENTLY AT JUST ABOUT 85 MILLION THIS YEAR, AND THEN THIS IS FURTHER COMPARISON TO FISCAL YEAR 22 AND 23.
THIS SLIDE GOES OVER THE CASH FLOW ANALYSIS. WE HAVE MET THE CASH FLOW NEEDS OF THE CITY FOR THE QUARTER AND EXPECT TO MEET THE EXPENDITURE REQUIREMENTS FOR THE UPCOMING PERIOD. THIS SLIDE GOES OVER THE SECTOR ALLOCATION FOR OUR PORTFOLIO, WE HAVE 38.4% IN US TREASURIES, 33.69% IN US AGENCIES, ALMOST 15% IN CORPORATE BONDS, ALMOST 13% IN MONEY MARKET FUNDS, AND FINALLY LAIF .13% MATURITY DISTRIBUTION. WE HAVE 33% IN INVESTMENTS THAT ARE MATURING BETWEEN 0 AND 1 YEAR 41% IN INVESTMENTS MATURING BETWEEN 1 AND 2 YEARS AND ALMOST 12% IN INVESTMENTS MATURING BETWEEN 2 AND 3 YEARS.
THIS QUARTER WE HAD ONE PURCHASE AND WE HAD ONE REDEMPTION.
THIS IS A TRANSACTIONAL DETAIL THAT WAS REQUESTED FOR THE PURCHASE THAT WE MADE FOR A US TREASURY COUPON 2.25% MATURITY FEBRUARY 15TH, 2027. SEVEN, AND THEN.
FISCAL IMPACT. INTEREST EARNED. YEAR TO DATE 1.6%.
1.6 MILLION. THE GENERAL FUND CONTRIBUTION RATE IS APPROXIMATELY 60%, SO ABOUT 963,000 CONTRIBUTED TO THE GENERAL FUND FOR THE ENTIRE FISCAL YEAR. AT THE BEGINNING, WE HAD BUDGETED A CONTRIBUTION OF 1.5 MILLION.
SO THIS SUMMARIZES OUR QUARTERLY PERFORMANCE YEAR TO DATE.
WE HAVE GREG BALLS ON ZOOM, AND HE'S GOING TO GO OVER SOME ADDITIONAL DETAILS.
SO I'M GOING TO PASS IT TO HIM. HE HAS ANOTHER ENGAGEMENT AT SEVEN.
SO LET ME SEE IF I CAN OPEN UP HIS. OKAY. GREG, I'M ON THE LET ME SEE.
I'M ON THE PAGE THREE. PAGE THREE. YOU GOT IT.
SO AND BY THE WAY, IF I NEED TO BE A LITTLE BIT LATER THAN SEVEN, THAT IS FINE.
SO , YEAH, I'M AT A CONFERENCE IN THE BEAUTIFUL TOWN OF SAINT GEORGE, UTAH, SO, W ELL, NOT MUCH HAS HAPPENED IN THE ECONOMIC ENVIRONMENT SINCE WE LAST SPOKE, AND I SAY THAT TONGUE IN CHEEK, BY THE WAY.
I MEAN, THERE HAS BEEN A LOT THAT'S HAPPENED. I'M NOT GOING TO GO OVER PAGE THREE TOO MUCH.
IT'S THERE FOR YOUR VIEWING PLEASURE. LET'S MOVE TO PAGE FOUR.
[00:20:04]
COMPARE IT TO THE GULF WAR OIL SPIKE, THE DOT COM BUBBLE BUST GREAT RECESSION AND COVID AND WHAT BEATS THEM ALL TARIFFS RIGHT NOW, AND SO A LOT OF UNCERTAINTY, AND THERE HAS BEEN SOME THINGS THAT HAVE HAPPENED HAVE COME THROUGH THE PIPELINE.I HAVEN'T READ ALL THE DETAILS, BUT I BELIEVE THERE WAS AN AGREEMENT MADE WITH THE UK.
I THINK LIKE 10% TARIFFS AND THEN OTHER OTHER STUFF, AND SO I APOLOGIZE, I DON'T HAVE A LOT OF INFORMATION ON THAT BECAUSE I JUST HAVEN'T BEEN ABLE TO READ IT, BUT SO THERE ARE DEALS THAT APPARENTLY ARE HAPPENING, AND SO WE'LL, WE'LL SEE WHAT REALLY TRANSPIRES THERE, BUT IT IS HAVING A MASSIVE EFFECT AND WILL CAUSE A LOT OF UNCERTAINTY UNTIL, YOU KNOW, DEALS GO THROUGH THE PIPELINE.
RIGHT, AS FAR AS THE FED FUNDS RATE, I DO WANT TO POINT OUT THAT THE FED DID MEET YESTERDAY.
SO THIS IS PAGE FIVE. SO THE FED FUNDS RATES DID NOT CHANGE YESTERDAY.
THE MARKET AFTER THE FED SPOKE SOMETIMES THE FED FUNDS MARKET OR THE FUTURES MARKET.
YOU KNOW HOW THE MARKET THINKS THE FED IS GOING TO CHANGE RATES BY THE END OF THE YEAR.
THAT CAN CHANGE A LOT, BUT IT DIDN'T. PRIOR TO THE MEETING, THEY WERE LOOKING FOR THREE CUTS BY THE END OF THE YEAR, AND WHEN I SAY THEY, I MEAN THE MARKET IS LOOKING FOR THREE CUTS BY THE END OF THE YEAR, AND AFTER THE MEETING, AS OF TODAY, THE MARKET IS EXPECTING THREE CUTS AS WELL, ONE PROBABLY IN THE JULY TIME FRAME AND THEN ANOTHER ONE PRICED IN THE SEPTEMBER OCTOBER TIME FRAME AND THEN A FINAL 1ST DECEMBER 25TH.
NOW, THE FED HAS MAINTAINED THAT THEY'RE GOING TO PROBABLY DO TWO CUTS THIS THIS YEAR, AND SO I THINK SOME OF THE CONCERN IS ON ON THE ONE HAND YOU HAVE TARIFFS THAT ARE GOING TO POTENTIALLY CAUSE MORE INFLATION, AND THEN ON THE OTHER HAND TARIFFS CAN CAUSE AN ISSUE WITH WITH GROWTH IN A RECESSION, AND SO THEN YOU START TALKING ABOUT THE SCARY S WORD OF STAGFLATION, AND SO IT'S HARD TO TELL RIGHT NOW WHAT'S GOING TO HAPPEN AGAIN.
THERE'S A LOT OF UNCERTAINTY THERE. ALL RIGHT.
SO PAGE SIX JUST KIND OF WHAT I SPOKE ABOUT. SO MY BOSS RICK PHILLIPS, WHO'S OFTEN ON THESE CALLS.
HE HE ASKED CHATGPT TO CREATE A A MEME OR A COMIC OR WHATEVER YOU CALL IT, SHOWING JAY POWELL BETWEEN A ROCK AND A HARD PLACE, AND THIS IS WHAT HE CAME UP WITH.
YOU HAVE INFLATION ON THE ONE SIDE AND THEN A RECESSION ON THE OTHER SIDE, AND SO JUST KIND OF WHAT I, WHAT I TALKED ABOUT, BUT THAT IS A BIG CONCERN FOR THE FED, AND THE FED HAS STATED THAT THEY ARE GOING TO BE VERY PATIENT.
YESTERDAY, I BELIEVE DURING THE PRESSER, JAY POWELL ALSO STATED SOMETHING ALONG THE LINES OF THAT HE WAS NOT EXPECTING THE WHAT THE TARIFFS, YOU KNOW, THAT TRUMP PROPOSED. I DON'T THINK THE MARKET WAS EXPECTING THAT AT ALL, BY THE WAY, AND WE SAW A VIOLENT REACTION TO THAT.
RIGHT. PAGE SEVEN. THIS IS THE CORE PCE, AND SO THE FED DOES LOOK AT PCE AS THEIR INFLATION GAUGE.
THEIR TARGET IS 2%, AND WE REMAIN ABOVE THE FED'S TARGET.
WE DO THINK THAT LET'S EXCLUDE TARIFFS FOR A MOMENT.
EVEN IF TARIFFS WEREN'T IN THE PICTURE, WE THOUGHT THAT WE WOULD SEE INFLATION GO DOWN TO THE MIDYEAR AND THEN WE COULD ACTUALLY SEE IT PICK UP, AND SO AGAIN THROW TARIFFS IN THE PICTURE THAT COULD CAUSE INFLATION TO GO EVEN HIGHER.
SO DEFINITELY KEEPING AN EYE ON THAT. SO PAGE EIGHT AS FAR AS GROWTH WE GOT OUR GDP NUMBER FOR Q1.
IT WAS NEGATIVE AT NEGATIVE POINT 0 OR NOT 0.03 I'M SORRY 0.3%.
NOW ONE OF THE REASONS WHY IT WAS NEGATIVE IS BECAUSE WHEN YOU LOOK AT GDP EXPORTS MINUS IMPORTS ACCOUNTS FOR A PORTION OF GDP, AND THAT HAD A LARGE DOWNWARD PRESSURE, AND ONE OF THE REASONS WHY IS BECAUSE AS TRUMP STARTED TALKING ABOUT TARIFFS.
A LOT OF INDIVIDUAL NOT INDIVIDUALS, BUT BUSINESSES.
THEY ACTUALLY STARTED IMPORTING IN ANTICIPATION OF TARIFFS, NOT WANTING TO PAY THE HIGHER PRICES, AND SO THAT CAUSED A DOWNWARD PRESSURE ON GDP, AND AN INTERESTING SIDE NOTE IS GOLD WAS IMPORTED AND MADE UP I BELIEVE IT WAS ABOUT A THIRD OF THE IMPORTS, AND BUT THEY CALLED OUT AN IMPORT AND THAT HAD A NEGATIVE DOWNWARD PRESSURE ON GDP.
SO JUST AN INTERESTING SIDE NOTE. NOW THE BLOOMBERG FORECAST IS LOW.
IT'S UNDER 1%, WHICH WE HAVEN'T SEEN FOR QUITE A WHILE.
AS YOU CAN SEE THERE IN THE IN THE SHADED LINES.
SO LOOKING FOR LOWER GROWTH POTENTIALLY GOING FORWARD.
[00:25:04]
ALL RIGHT. PAGE NINE. THIS IS THE EMPLOYMENT DATA.SO AS FAR AS EMPLOYMENT. IT HAS REMAINED RESILIENT, BUT AS YOU CAN SEE SO WE HAVE THAT LOWER RANGE FULL EMPLOYMENT, USUALLY EMPLOYMENT. WHEN IT CHANGES, IT HAPPENS SLOWLY, THEN ALL AT ONCE, AND SO IF WE HAVE A RECESSION OR IF TARIFFS CAUSE A DOWNTURN, THAT UNEMPLOYMENT DATA, THAT UNEMPLOYMENT RATE CAN RISE PRETTY QUICKLY.
AN INTERESTING TIDBIT IS WHEN YOU LOOK AT THE CONSECUTIVE MONTHS OF THE UNEMPLOYMENT RATE BEING UNDER 4.5%, WE'RE AT 42 MONTHS NOW, AND THE ONLY TIME WE HAD A LONGER STREAK WAS BACK IN THE 60S.
THE TOP GRAPH. YOU SEE THE FED FUNDS RATE ALONG WITH THE THREE MONTH T-BILL WHICH IS IN THE TEAL.
SO NOTICE FOR EXAMPLE, BACK IN THE LATER PART OF JULY TO 2ND AUGUST TIME PERIOD, THE TREASURY STARTED GOING DOWN IN ANTICIPATION OF A CUT, AND THEN THE FED ACTUALLY CUT IN SEPTEMBER BY 0.5%, AND THEN IT CONTINUED GOING DOWN IN ANTICIPATION OF ANOTHER RATE CUT, AND AGAIN, THEY DID CUT IN NOVEMBER, AND THEN THEY CUT IN DECEMBER AS WELL, BUT NOTICE HOW THE THREE MONTH T-BILL HAS NOT GONE DOWN IN YIELD. SO IT'S JUST KIND OF AN INTERESTING OBSERVATION WHERE YOU HAVE THE FED FUNDS FUTURES PRICING IN THREE CUTS, BUT WHEN YOU LOOK AT THE THREE MONTH, THREE MONTH T-BILL, IT HASN'T REALLY LED LOWER IN ANTICIPATION OF LIKE A JULY CUT, FOR EXAMPLE, AND SO KEEPING AN EYE ON THAT AND TO SEE WHAT HAPPENS.
NOW, AS FAR AS THE FIVE YEAR, THE FIVE YEAR IS REALLY DRIVEN BY INVESTORS LONG TERM VIEW ON GROWTH AND INFLATION AND THE ONE THING I DO WANT TO POINT OUT IS THE THREE MONTH TREASURY OR LAIF OR CAMP.
THEY'RE GOING TO BE DRIVEN MORE BY WHAT THE FED DOES WHEN THEY CUT.
THEY'RE GOING TO BE VERY SENSITIVE TO THE FED, THOSE SHORTER TERM SECURITIES, BUT THE FIVE YEAR IS MUCH MORE VOLATILE, AND THAT'S WHAT YOU SEE HERE IN THIS CHART. WE HAVE IN THE SHADED.
I THINK IT'S TEAL AND FORGIVE ME I'M SOMEWHAT COLORBLIND.
SO I MIGHT GET MY COLORS WRONG, BUT I BELIEVE IT'S A SHADE OF TEAL BETWEEN 4.8% TO 3.8%.
WE BELIEVE THAT'S WHAT THE EXPECTED RANGE OF THE FIVE YEAR TREASURY IS GOING TO BE IN THE NEAR TERM.
THE LAST THING I JUST WANT TO CLOSE ON IS, ALTHOUGH YIELDS HAVE COME DOWN QUITE A BIT FROM FROM THEIR HIGHS, WE DO THINK THAT IT'S STILL ADVANTAGEOUS WHEN YOU'RE, WHEN YOU'RE ABLE TO LOCK IN YIELD FOR BUDGET STABILITY.
WE'RE ABLE TO DO SO FOR THE CITY, AND WE'RE STILL COMFORTABLE DOING THAT AT THIS POINT IN TIME.
SO THAT'S WHAT I HAVE FOR THE ON THE ECONOMIC SIDE.
ANY QUESTIONS. DOES ANYONE HAVE ANY QUESTIONS FOR THE CITY TREASURER OFFICE OR THIS PRESENTATION.
SO I JUST HAVE A QUESTION. SO IF I'M JUST GOING TO TRY TO FIND A SENSIBLE WAY TO PHRASE IT.
SO IF THE FED CUTS RATES AND SO A LOT OF YOUR ASSETS ARE SHORT TERM.
SO THE EARNINGS ON YOUR SHORT TERM ASSETS ARE GOING TO GO DOWN, BUT IF INFLATION SPIKES THEN YOUR COSTS ARE GOING TO STAY HIGH OR GO UP, AND SO IS THERE A PLAN IN PLACE TO DEAL WITH THE POTENTIAL MISMATCH BETWEEN A DECLINE IN SHORT TERM RATES THAT WOULD PUSH DOWN YOUR INCOME FROM THE ASSETS AND CONTINUED HIGH INFLATION, WHICH COULD PUSH THE COSTS UP.
SO HOW DO YOU THINK ABOUT THAT? AND THEN WHAT WOULD BE SOME OF THE IDEAS THAT YOU MIGHT HAVE TO DEAL WITH THAT? THANK YOU FOR THE QUESTION, COMMISSIONER RAMCHARAN. WHAT WE TRY AND DO IS YOU MAY HAVE HEARD THE GREG MENTIONED A MOMENT AGO IS WHEN WE HAVE OPPORTUNITY, WE TRY TO GO AHEAD AND LOCK IN OUR THE YIELDS THAT WE'RE EXPERIENCING NOW FOR LONGER PERIODS OF TIME.
WE REALIZE THAT IT IS A BALANCE TO TAKE BETWEEN YOUR LIQUIDITY RISK AND YOUR RATE RISK.
SO WE HAD THE ONE PURCHASE THAT WE HAD IN OUR PREVIOUS IN THE QUARTER.
SO WHEN THOSE OPPORTUNITIES PRESENT, WE ARE TAKING SOME OF THAT RATE RISK OFF OF THE TABLE, BUT THERE ARE A LOT OF CHALLENGES FOR THE CITY WHEN IT COMES TO REVENUES BEING RELATIVELY FLAT AND THOSE COSTS THAT YOU'RE SPEAKING ABOUT OUT INCREASING.
[00:30:08]
WE DON'T WANT TO BE PUT INTO A POSITION WHERE WE MIGHT HAVE TO REDEEM A MATURE SECURITY EARLY, AND PERHAPS TAKE A LOSS ON IT FOR TAKING TOO MUCH RATE RISK.YEAH. SO JUST TO MAKE SURE I UNDERSTAND IT, YOU'RE TAKING THE TERM PREMIUM RISK BECAUSE YOU GO OUT ON THE YIELD CURVE TO TAKE ON THAT RISK, AND SO THE CONCERN YOU HAVE IS IF YOU'RE FORCED TO SELL THE ASSET TO TOO EARLY, YOU COULD FACE A FALL IN PRICES OF THE ASSET ITSELF.
YES, AND DO YOU HAVE A I GUESS IS THAT SOMETHING THAT YOU GAME PLAN.
DO YOU HAVE A SENSE AS TO WHAT'S THE ODDS OF THE TERM PREMIUM RISK BECOMING OR GOING AGAINST YOU THAT YOU'RE FORCED TO SELL IF BOND PRICES ARE FALLING AT THAT POINT? WE DO. WE CREATE CASH FLOW ANALYSIS ON A WEEKLY BASIS, REALLY TO DETERMINE WHAT OUR FUTURE OBLIGATIONS ARE.
AN EXAMPLE WOULD BE THIS MONTH. ON MAY THE 1ST, WE HAD A DEBT PAYMENT DUE FOR OUR LEASE REVENUE BONDS THAT WE WERE ISSUED IN 2021, AND WE HAD TO CREATE CASH IN ORDER TO DO THAT.
SO WE HAD TO LEAVE OURSELVES SHORT IN ORDER TO SERVICE THAT DEBT AND THAT FUNDING HAD TO TAKE PLACE IN APRIL AT OR AROUND THE SAME TIME THAT WE MIGHT BE RECEIVING PROPERTY TAXES FROM THE COUNTY BUT WE DON'T KNOW WHAT THE PROPERTY TAX AMOUNT IS GOING TO BE FROM THE COUNTY OR AND WE HAVE AN IDEA OF WHEN THAT'S GOING TO COME IN, BUT IT COULD FLOAT AROUND WITHIN A WEEK, BUT WE DO KNOW THAT WE HAVE THE OBLIGATION TO TRANSFER THE FUNDS BY X DATE TO BE AVAILABLE BY Y.
SO WE DO A REGULAR CASH FLOW ANALYSIS IN ORDER TO DETERMINE DEBT SERVICE, AP PAYROLL, AND ALL OF THOSE OTHER PRESSURE POINTS IN ORDER TO DETERMINE WHEN WE CAN GO OUT, WHEN WE CAN TAKE RISK, AND WHEN WE NEED TO PLAY MORE CONSERVATIVELY.
THANK YOU. THANK YOU, MR. SOLOMON. I JUST HAD ONE QUESTION.
IF THERE IS AN EMERGENCY. UNPLANNED EMERGENCY.
HOW MUCH MONEY CAN YOU GET YOUR HANDS ON ALMOST IMMEDIATELY? IS THAT PERCENTAGE OF THE TOTAL? CASH FLOW. HAS IT TO REMAIN THE SAME OR HAVE YOU INCREASED IT OR REDUCED IT? WE HAVE SAID IN DISCUSSIONS WITH OUR CITY FINANCE DIRECTOR MISS MEYER, WE HAVE SET IN OUR SUBSIDIARY ACCOUNT AN IDEA OF WHERE WE WANT TO BE AT ALL TIMES, AND IF WE FIND OURSELVES FALLING BELOW, WE KNOW WHAT OUR EXPENSES ARE GOING TO BE FOR THE MONTH.
SOME MONTHS, WE MIGHT HAVE A HIGHER PAYROLL THAN OTHERS, MIGHT HAVE HIGHER AP THAN OTHERS.
WE ALSO HAVE MONIES IN OUR MONEY MARKET ACCOUNT, AND THAT IS LIQUID, AND WE HAVE MONEY MARKET MONIES IN OUR ACCOUNTS SUCH AS LAIF AND IN OUR CAMP ACCOUNT. SO THOSE ARE EASILY CONVERTIBLE TO AVAILABLE RESOURCE THERE IN CASH ESSENTIALLY, AND WE CAN PUT OUR HANDS ON THAT FOR AN EMERGENCY VERY QUICKLY.
SO WHAT'S THE TOTAL. CAN YOU IDENTIFY THE NUMBER AS A TOTAL? RIGHT NOW. LAST I LOOKED WE HAD ABOUT 8.9 MILLION IN THE SUBSIDIARY ACCOUNT, ANOTHER 13 MILLION IN THE CAMP ACCOUNT, AND HOW MUCH IN THE MONEY MARKET ACCOUNT? ABOUT TWO ABOUT 2 MILLION IN THE MONEY MARKET ACCOUNT.
SO IF THERE WERE SOME CATASTROPHIC EVENTS, SOME BLACK SWAN EVENT, LIKE WE HAVE IN COVID TIMES OR SOMETHING ELSE, WE WOULD HAVE THOSE RESERVES AND THIS BODY HAS HAD A DISCUSSION ABOUT RESERVES AND, AND DISCUSSION THAT YOU WANTED TO FORWARD TO THE CITY COUNCIL FOR THOSE EVENTS AS WELL.
YEAH. IN THE PAST DISCUSSIONS WITH THE CITY MANAGER, WE WERE TOLD WE HAVE ONE MONTHS, I THINK, A BUDGET IN RESERVES, AND WE SUGGESTED WE INCREASE THAT PERCENTAGE.
YOU DON'T KNOW EITHER. SO I WOULD I WOULD DEFER TO THE CITY MANAGER FOR THE STATUS OF THAT DISCUSSION BEING BROUGHT BEFORE THE CITY COUNCIL FOR YOUR RECOMMENDATION TO ADDRESS THE RESERVES. PLEASE, THANK YOU. DO YOU HAVE ANYTHING? NO. ANYONE ELSE? NO. THE CALPERS THAT YOU MENTIONED, THE RESERVES.
WHERE? SO THAT'S NOT PART OF YOUR INVESTMENTS THAT RESIDES SOMEWHERE ELSE.
IT'S A SEPARATE FUND. YES. WHERE IS THAT GETTING INVESTED? OR YOU PROBABLY DON'T KNOW, BECAUSE THAT'S NOT PROBABLY UNDER YOU.
[00:35:02]
I DON'T BELIEVE SO, BUT THE CALPERS RESERVE IS A PART OF THE GENERAL FUND.IT'S CODED AS CALPERS RESERVE. IT'S A SEPARATE FUND.
SEPARATE FUND. SO IS IT PART OF THIS $85 MILLION? IT IS NOT. NOT TO MY KNOWLEDGE, IT'S NOT. IT IS NOT.
STEPHANIE, DO YOU KNOW IF IT'S NOT? I JUST WANT TO MAKE SURE I'M NOT DISAGREEING WITH YOU.
I JUST WANT TO MAKE SURE. SO IT'S NOT. SO IF IT'S NOT IN THIS FUND, THEN WHERE IS IT GETTING INVESTED? IT'S IN OUR OR WHERE IT WOULD BE EITHER IN OUR BANK WOULD BE OUR ONE OF OUR SUBSIDIARY ACCOUNTS THAT WE HAVE. IT DOESN'T RECEIVE AN INVESTMENT CREDIT.
SO IT JUST CASH SITTING THERE? YES. SO YOU KNOW WHAT MY ADVICE IS GOING TO BE TO YOU? [INAUDIBLE] MONEY AND INVEST. IT IS AN ADVISORY COMMITTEE.
SO THAT WOULD BE MY ADVICE. HAVE A DISCUSSION ABOUT OUR ABILITIES TO DO THAT.
THANK YOU. YEAH. IF IT'S JUST CASH SITTING THERE I'D BE HAPPY TO DO THAT.
OKAY, AND WHETHER IT BE IN THE MONEY MARKET OR BE IN SOMETHING ELSE, I WANT TO MAKE SURE THAT'S WITHIN OUR INVESTMENT POLICY AND WITHIN GOVERNMENT CODE GUIDELINES. OKAY. YOU'RE THE TREASURER. YOU SHOULD BE YOU SHOULD HAVE THE UPPER HAND IN THAT, AND SPEAKING OF CASH, THERE IS A LOT OF CASH.
I KNOW YOU'RE RECEIVING YIELD ON CASH IN BANK, BUT I KNOW THAT LAIF OR CAMP, IT PAYS MORE THAN CASH IN BANK. SO, AND IF YOU'RE DOING YOUR CASH FLOW ANALYSIS ON A DAILY BASIS, WEEKLY BASIS, MONTHLY BASIS. SO AS AN ADVISORY COMMITTEE, MY ADVICE IS TO NOT HAVE MORE THAN 3 TO 5% IN YOUR CHECKING ACCOUNT, THAT NUMBER FOR THE AMOUNT OF $85 MILLION.
THAT'S 15%. THAT'S WAY TOO MUCH TO BE SITTING IN A CHECKING ACCOUNT.
SO THAT'S ONE. THE OTHER IS YOU HAVE 10 MILLION IN MONEY MARKET.
THE OTHER ADVICE I WANTED TO GIVE YOU AND, AND I KNOW THIS, THESE ARE THE NUMBERS AS OF MARCH.
IT'S PART OF THE LGIP. LGIP, AND THE OTHER THING I'D LIKE TO JUST POINT OUT IS WHEN WE MENTIONED THE WORD MONEY MARKET, THAT IS CAMP AND CAMP AND MONEY MARKET. OKAY.
YEAH. SO SO THERE ARE TWO DIFFERENT ACCOUNTS.
THANK YOU FOR CLARIFYING THAT. MONEY MARKET IS A DIFFERENT ACCOUNT AND IT GIVES DIFFERENT YIELDS.
I WOULD SEPARATE THOSE BECAUSE WHEN YOU'RE CALCULATING YOUR YIELD, MONEY MARKET IS LIKE RIGHT NOW I THINK IT'S 4.24 PROBABLY, AND CAMP IS 4.45. SO THAT'S GOING TO CHANGE. I WOULD SEPARATE THEM AND PUT THEM EXACTLY WHERE THEY ARE.
SO ON PAGE TEN YOU'LL SEE MONEY MARKET FUNDS HAS BEEN SEPARATED WITH THE YIELD.
IT'S, IT'S ON THE BACK SCREEN RIGHT THERE. PAGE TEN.
SO YOU'LL SEE THE FIRST, FIRST ONE IS US BANK AND THE SECOND ONE IS CAMP.
SO THEY ARE SEPARATED. YES. SO WHEN YOU DO YOUR SUMMARY, WOULD YOU ALSO PUT IT IN THAT WAY? SURE. IF POSSIBLE PLEASE. THANK YOU. OKAY. SO YOU DO HAVE MONEY IN CAMP? I'M SORRY. LET ME. I'M JUST CHECKING. SO THERE'S 8 MILLION SITTING IN.
OH, GOOD. OKAY. I THOUGHT ALL OF THAT WAS IN MONEY MARKET.
OKAY, SO YOU CAN PUT ANOTHER 10 MILLION FROM THE CHECKING ACCOUNT IN THERE, AND THE OTHER, PROBABLY THE LAST THING I WANT TO MENTION IS THANK YOU FOR INCLUDING THE TRADING ACTIVITY ON THE PRESENTATION.
MOST OF THE INVESTMENTS ARE ALREADY IN 1 TO 2 YEARS.
LIKE THAT'S. SO INSTEAD OF BUYING SOMETHING THAT MATURES IN TWO YEARS, I WOULD BUY SOMETHING THAT MATURES IN THREE, 4 OR 5 YEARS. SO WE'RE TRYING TO STAGGER SOME OF THOSE FUNDS INTO APPLICATION TOWARDS SOME DEBT SERVICE OR SOME OTHER SERVICE, SUCH AS CALPERS PAYMENT, A SUPPLEMENTAL PAYMENT, OR A DEBT SERVICE PAYMENT.
THE REASON, IN PART, THAT WE'VE STAYED SHORTER IS THE CASH FLOW NEED.
[00:40:02]
SO IT'S BEEN THIS THIS BUDGET CYCLE AS AN EXAMPLE.YOU'LL SEE SOME OF THE REVENUES ARE RELATIVELY FLAT AND THERE'S SOME UNCERTAINTIES.
I AGREE WITH YOU. I'D BE VERY HAPPY TO GO AHEAD AND TAKE ON AND SECURE CURRENT RATES AT FOUR AND FIVE YEARS, BUT I FELT IT TO BE IMPRUDENT CONSIDERING OUR CASH FLOW NEED AT THIS TIME.
SO SO IN TWO YEARS, WE'RE GOING TO HAVE A LOT OF EXPENSES COMING UP.
SOME OF THE PROJECTS THAT WE'D HAD THAT WE'D HOPED WOULD COME ONLINE FOR REVENUE SOURCE, LIKE THE LEGADO HOTEL, FOR EXAMPLE, HAVE TAKEN A LITTLE BIT LONGER TO COME ONLINE.
WE HAD THE MARINE AVENUE HOTELS, WHICH WERE NOT PAYING US OUR TOT FOR A PERIOD OF TIME.
SO WHILE WE WERE WAITING FOR THAT AFR THE AUTHORITY FUNDED RESERVE TO BE REFRESHED TO THE LEVEL AT WHICH WE WOULD BEGIN RECEIVING TOT AGAIN , THE DATE OF THAT WAS UNCERTAIN. SO WHILE THESE REVENUES ARE EITHER FUTURE PREDICTIVE, UNCERTAIN, OR CURRENTLY UNCERTAIN, WE HAVEN'T BEEN GOING OUT LONGER SO THAT IN THE EVENT THAT WE HAD TO ACCESS THOSE FUNDS IN A SHORTER PERIOD OF TIME.
OKAY. I HAD NO IDEA WHERE WE'RE IN. A LITTLE BIT OF A TROUBLE.
OKAY. SOME OF THE SOME OF THE FUTURE, SOME OF THE FUTURE REVENUES HAVEN'T COME ON AS QUICKLY AS WE HAD HOPED THEY WOULD, AND WHEN YOU SAY REVENUES DON'T COME IN, I MEAN, USUALLY THEY THEY MIGHT BE LATE FOR A MONTH OR SO.
NOT FOR AN ENTIRE YEAR. IS THAT WHY YOU'RE SAYING THAT SOMETHING IS GOING TO COME A YEAR LATER THAN EXPECTED? WITH REGARD TO THE LEGADO HOTEL OR WITH REGARD TO THE MARINE AVENUE HOTELS IN REGARDS TO REVENUE, REVENUE IN GENERAL, IN GENERAL THE REVENUE THAT YOU'RE AFRAID THAT WE WON'T, THAT WE WILL NEED IN TWO YEARS.
SO IF WE SEE MARKETS ARE NOT DOING WELL, WE KNOW THAT WE'RE GOING TO HAVE A CALPERS PAYMENT, PROBABLY AN ADDITIONAL OR SUPPLEMENTAL PAYMENT IN TWO YEARS.
IT'S NOT GOING TO BE 4 OR 5 YEARS OUT. IT'S GOING TO BE IN TWO YEARS.
SO WE WANT TO TRY AND ACCOUNT FOR THAT. WITH REGARD TO MACROECONOMIC TRENDS.
WE'RE LOOKING THIS YEAR AT SEEING TOURISM BE DOWN.
SO WE'RE WONDERING WHETHER OR NOT IN THE 20 25-26 FISCAL YEAR, WE MIGHT HAVE SOME OF THAT MONEY TRICKLING IN, BUT THEN FOR THOSE DELAYS IN 26-27, THEY MAY NOT BE AVAILABLE TO US OR IT MIGHT BE REDUCED.
SO WE DON'T WANT TO GO OUT 4 OR 5 YEARS WHEN WE MIGHT SEE A NEED FOR THAT IN 18 MONTHS TO TWO YEARS.
WITH REGARD TO PROPERTY TAXES, YOU HAVE LOTS OF FOLKS THAT ARE GOING TO BE IN THE PALISADES AND ALTADENA, AND WE GET OUR PROPERTY TAXES AS PART OF A POOL, THE L.A.
COUNTY POOL. SO THOSE FUNDS COULD BE REDUCED.
SO WHEN I SAY UNCERTAINTIES, THOSE ARE A FEW EXAMPLES OF WHAT I MEAN.
YEAH, THAT'S NOT GOOD NEWS, BUT THANK YOU [INAUDIBLE] YEAH, IT'S NOT A GOOD NEWS.
SO I DO WANT TO FOLLOW UP LATER. IF WE CAN, MAYBE IF YOU REMEMBER AND IF YOU WOULD LIKE, YOU KNOW, IF YOU IF YOU WOULD OF COURSE, YOU DON'T HAVE TO FOLLOW UP ON THE CALPERS RESERVES.
ABSOLUTELY. I WANT TO SEE IF THERE'S A WAY THAT YOU CAN GET YOUR HANDS ON IT AND START INVESTING AND, YOU KNOW, OR AT LEAST FIND OUT WHAT'S GOING ON.
ABSOLUTELY WILL DO. I'VE TAKEN THAT NOTE AND APPRECIATE THE SUGGESTION.
THANK YOU. WILL DO. OF COURSE. A QUICK COMMENT AS WELL.
AS YOU 'RE THINKING, AS YOU'RE THINKING ABOUT MACRO RISK THE SECRETARY OF THE TREASURY POINTED OUT THAT THERE'S A CHANCE THAT THE THAT THE US WILL TAKE THE LONG DURATION DEBT AND EFFECTIVELY TRY TO DEFAULT ON THEM BY PUSHING THE DURATION OUT TO ONE 100 YEARS, AND SO AS YOU TAKE THE DURATION RISK. JUST KEEP IN MIND THAT THERE'S A NON-TRIVIAL CHANCE THAT IN THE NEXT 5 TO 6 MONTHS THE PERFORMANCE OF LONGER DATED DEBT COULD CHANGE.
[00:45:01]
INTERESTING. THANK YOU FOR BRINGING THAT UP. WE HAVE A NUMBER OF MATURITIES THAT ARE COMING UP IN JULY, SO IT WILL BE A REALLY GOOD OPPORTUNITY FOR US IN THE NEXT MONTH OR SO TO TAKE A LOOK AT WHAT WE CAN DO AND THE DEPUTY TREASURER AND THE FINANCE DIRECTOR.VERY WELL. DO I HAVE A MOTION TO ACCEPT AND FILE A TREASURER'S Q3 REPORT, PLEASE? OH, JUST BEFORE WE DO THE MOTION, I JUST WANT TO NOTE THERE'S NO E-COMMENTS AND NO ONE ON ZOOM, AND I'M ASSUMING NO PUBLIC COMMENTS HERE. PLEASE.
NO. OKAY, SO NO COMMENTS. THANK YOU. DO I HAVE A MOTION TO ACCEPT AND FILE THE REPORT? PLEASE MAKE A MOTION. GIVE ME ONE SECOND. SURE.
I SECOND THE MOTION. ALL IN FAVOR? AYE. ANY NAYS? NO N AYS. MOTION CARRIED. THANK YOU. THANK YOU.
COMMISSIONERS. WE ARE ON ITEM J TWO FISCAL YEAR 2024, QUARTER THREE FINANCIAL REPORTING JANUARY THROUGH MARCH 2025, AND WE HAVE STEPHANIE MEYER, FINANCE DIRECTOR PRESENTING.
GOOD EVENING COMMISSIONERS. ONE SECOND AND I WILL PULL UP THIS PRESENTATION.
OKAY, SO YOU MAY NEED TO BEAR WITH ME AS I MAY NEED TO LOG INTO THIS.
OKAY. ERIN, IF YOU CAN SWITCH OVER TO OUR SCREEN.
I HAVE UPDATED THE FORMAT A BIT. IT IS NOT QUITE AS EXCITING AS OUR I.T.
DIRECTOR'S PRESENTATION, BUT I ATTEMPTED TO BORROW SOME IDEAS FROM HIM AND IN RESPONSE TO FEEDBACK FROM THE COMMISSION, REALLY PULL THE DETAIL UP QUITE A BIT BECAUSE I THINK IT WAS NOT EXTREMELY USEFUL.
I'M HAPPY TO GO INTO ANY DETAIL THAT YOU'D LIKE TO REQUEST, AND BUT HAPPY TO ALWAYS TAKE NOTES ON THIS IF THERE'S ADDITIONAL DETAIL THAT YOU WOULD LIKE TO SEE. SO, AND JUST FOR OUR NEWEST COMMISSIONER HERE IN ADDITION TO THE TREASURER'S QUARTERLY REPORT, WE BRING A REPORT TO THE GROUP TO SHOW OUR RECEIPTS AND SPENDING COMPARED TO BUDGET THROUGHOUT THE YEAR.
SO THIS IS THROUGH APRIL 2025. AGAIN, WE LOOK AT OUR REVENUE AND SPENDING.
I'VE ALSO ADDED A HIGH LEVEL SUMMARY OF OUR CAPITAL SPENDING TO THIS REPORT THIS TIME.
SO LOOKING AT OUR REVENUE SOURCES FOR THE GENERAL FUND, TOTALLY.
WE'VE RECEIVED ABOUT 60% OF THE BUDGET THROUGH APRIL.
AGAIN, YOU CAN SEE THAT THIS PERCENTAGE TRACKS PRETTY CLOSELY TO OUR PERCENTAGE OF TAX REVENUE RECEIVED, AND THAT IS, OF COURSE, DRIVEN BY OUR PROPERTY TAX REVENUE.
WHICH ACCOUNTS FOR KIND OF THE, THE LARGE THE LARGE DISCREPANCY THERE.
WE DO EXPECT TO RECEIVE OUR FULL PROPERTY TAX REVENUE THIS YEAR.
YES. WE EXPECT TO RECEIVE OUR FULL PROPERTY TAX REVENUE THIS YEAR.
WE ARE AWARE OF THAT TREND, AND IT'S SOMETHING THAT WE PREPARED FOR A LITTLE BIT AT MID-YEAR WHEN WE PROJECTED ABOUT A $2.2 MILLION FUND BALANCE AND RECOMMEND THAT THE COUNCIL NOT DO ANYTHING TO SPEND THAT.
[00:50:04]
AND AGAIN, THIS JUST GOES THROUGH OUR MAJOR CATEGORIES.WE'RE CLOSE TO THREE QUARTERS OF OUR BUDGET, WHICH IS GOOD.
THESE ARE MORE IMMEDIATE. SO THIS IS A GOOD SIGN.
IT'S ALSO PENDING THE RECEIPT OF REVENUE FOR OUR PLANNING AND BUILDING DEPARTMENT FOR ABOUT A MONTH.
SO I EXPECT THIS TO LOOK A LITTLE BIT BETTER THAN IT DOES NOW, WHICH AGAIN, IS A GOOD SIGN FOR US.
AGAIN, WE EXPECT THIS TO COME IN NEAR BUDGET.
OUR FINES AND FORFEITURES AGAIN, I THINK WE SHOULD COME IN CLOSE TO BUDGET OTHER REVENUE.
A LARGE PORTION OF THIS IS A REIMBURSEMENT FROM THE CITY'S OTHER POST-EMPLOYMENT BENEFITS TRUST, AND WE GET THIS AT THE END OF THE YEAR OUR OVERHEAD IS AT 50%.
BECAUSE WE CHARGE THIS IS A PAYMENT THAT WE CHARGE OURSELVES.
SO THIS WILL END UP AT 100% OF THE BUDGET, AND THEN OUR TRANSFERS TRANSFERS IN, OUR TRANSFERS FROM OTHER FUNDS RELATED TO OUR 2021 A BOND PAYMENT AND OUR 2019 A PAYMENT.
SO AGAIN, THESE ARE PAYMENTS THAT WE MAKE FROM OTHER FUNDS.
SO WE WILL BE AT 100% OF THOSE. I ALSO WANTED TO BRING YOU THIS TIME A REVENUE BY DEPARTMENT.
THE COMMISSION HAD EXPRESSED INTEREST IN A LINE ITEM BY DEPARTMENT.
I'LL JUST NOTE FOR YOU THAT THE WAY THE CITY ORGANIZES OUR BUDGET, WE PUT ALL OF THE TAX REVENUE IN THE FINANCE DEPARTMENT, WHICH IS WHY WE HAVE THIS VERY LARGE NUMBER HERE.
THE OTHER PLACES WE HAVE SOME FAIRLY SIGNIFICANT REVENUE CITY TREASURER'S OFFICE.
THE POLICE DEPARTMENT HAS PARKING AND VARIOUS FINES AND FEES.
OUR COMMUNITY SERVICES DEPARTMENT. THIS IS WHERE WE HAVE ALL OUR RECREATION CLASSES AND A LOT OF THE OUR, OUR RECREATIONAL BUILDING LEASES AND OUR COMMUNITY DEVELOPMENT.
THIS IS SOME OF OUR LEASE REVENUE AS WELL. SO AGAIN, JUST NOTING HERE, THIS IS WHY THERE'S THIS BIG NUMBER, HUMAN RESOURCES REVENUE. AS YOU CAN SEE, ZERO COMES IN AT THE END OF THE YEAR, AND THIS IS PENDING SOME OF OUR CHARGES FOR SERVICE REVENUE.
CAN I INTERJECT JUST FOR A SECOND? CORRECT ME IF I'M WRONG.
ANY DEPARTMENT, ANY OF THESE NUMBERS, IN THE EXCEPTION OF CITY TREASURER, THESE ARE COST RECOVERY, RIGHT? THEY YES, THEY ARE AT OR BELOW COST RECOVERY.
SO NORMALLY WE THE CITY DOES NEVER SETS FEES TO MAKE MONEY.
SO WE ARE AT COST RECOVERY AND IN MANY CASES WE ARE BELOW COST RECOVERY, EITHER AS A POLICY CHOICE OR JUST BECAUSE WE HAVEN'T YET UPDATED OUR FEES TO APPROPRIATELY REFLECT ALL OF THE COSTS.
YES. THAT IS A GREAT CLARIFICATION. THANK YOU, AND THEN MOVING ON TO CITYWIDE REVENUE BY FUND.
SO IN ADDITION TO OUR GENERAL FUND, WE ALSO HAVE SPECIAL REVENUE FUNDS.
THESE ARE FUNDS THAT ARE SET ASIDE FOR SPECIFIC PURPOSES.
THE LARGEST ONE OF THESE IS OUR INTERGOVERNMENTAL GRANTS FUND BUT WE ALSO HAVE ITEMS, FOR EXAMPLE, FOR OUR STREET LIGHTING AND ASSESSMENT DISTRICT, OUR COMMUNITY DEVELOPMENT BLOCK GRANTS.
SO THIS IS AGAIN, THESE AREN'T KIND OF ONGOING REVENUES WHERE WE PROVIDE SERVICES AND GET MONEY.
THESE ARE SPECIFIC PURPOSES WHERE WE HAVE SPECIFIC ALLOCATIONS.
THESE ARE FREQUENTLY REIMBURSEMENT BASED. SO AGAIN, WE SHOW THE TOTAL THE AMOUNT WE'VE RECEIVED, BUT THIS DOESN'T IF WE'VE BUDGETED FUNDS HERE, WE'RE GOING TO GET THE FUNDS THAT ARE ALLOCATED TO THE CITY.
IT JUST SHOWS OUR SPENDING. CAPITAL PROJECTS.
WE HAVE TWO FEES THAT COME INTO OUR CAPITAL PROJECTS.
[00:55:09]
THINGS LIKE THIS COUNCIL CHAMBERS. I THINK THIS IS THE LAST THING THAT THEY UPDATED.SO THEREFORE MEDIA AND RELATED THINGS TO PROVIDE BETTER ACCESS TO THE PUBLIC, AND THEN WE ALSO HAVE A TRANSFER IN FROM OUR GENERAL FUND RELATED TO OUR SUCCESSOR AGENCY BOND PAYMENT.
SO IT'S OUR SUCCESSOR AGENCY PAYS T HE CITY AND THE CITY HAS DETERMINED TO TRANSFER THAT FUNDING TO THE CAPITAL PROJECTS FUND TO SUPPORT OUR CAPITAL PROGRAM. SO THAT'S A TRANSFER THAT WILL MAKE AT THE END OF THE YEAR, WHICH IS WHY THIS NUMBER IS OUT HERE.
OUR ENTERPRISE FUNDS, THESE ARE FUNDS THAT OPERATE AS A BUSINESS.
SO THESE FUNDS HAVE PERSONNEL. THEY HAVE SERVICE CHARGES.
SO THESE ARE A LITTLE BIT MORE WHERE WE, WE WANT TO SEE THE PROGRESSION OF RECEIVING REVENUE.
WE HAVE OUR HARBOR TIDELANDS FUND, HARBOR UPLANDS FUND, A SEWER FUND AND A WASTEWATER FUND, AND WE'RE ABOUT WHERE I THINK WE SHOULD BE RIGHT NOW.
OUR HARBOR, TIDELANDS AND UPLANDS FUNDS. THE VAST MAJORITY OF THAT REVENUE IS FROM OUR HARBOR LEASES, AND AGAIN, THOSE ARE ABOUT A MONTH BEHIND JUST BECAUSE OF TIMING, AND THEN OUR OTHER FUNDS, THESE ARE INTERNAL SERVICE FUNDS AND DEBT SERVICE FUNDS.
THIS ADDS UP TO OUR TOTAL, AND THEN, SO THAT WE'RE NOT DOUBLE COUNTING, I BACK OUT ALL THE TRANSFERS, WHICH AGAIN, WE'RE JUST TRANSFERRING BETWEEN FUNDS.
SO OVERALL WE'RE AT ABOUT 54.7. THAT NUMBER LOOKS LOW FOR REVENUE, BUT AGAIN FOR OUR MAJOR SOURCES SPECIFICALLY FOR THE REVENUE, WE'RE PRETTY CONFIDENT THAT THE REVENUE IS IS GOING TO COME IN.
SO MOVING ON TO SPENDING. SO I'VE BROKEN IT DOWN BY TYPE.
WE HAVE OUR PERSONNEL AND FRINGE. THIS IS ALL OF OUR PERMANENT SALARY COSTS.
IT ALSO INCLUDES OVERTIME AND OUR PART TIME. CAN I INTERJECT ONE MORE TIME, PLEASE? SO FOR THE REVENUE. THANK YOU FOR PROVIDING IT BY DEPARTMENT, BUT YOU DON'T HAVE HOW MUCH WE RECEIVE FROM PROPERTY TAXES OR SALES TAXES.
I DID NOT INCLUDE THAT BREAKDOWN OF THE SPECIFIC TAX DETAIL, BUT I CAN DEFINITELY DO THAT.
THE WAY, DON'T YOU ALWAYS HAVE THAT? I USUALLY DO THAT.
YES, PLEASE. THAT ALWAYS NEEDS TO STAY. DEFINITELY.
I DON'T THINK WE MEANT TO REMOVE THAT. THAT'S VERY IMPORTANT.
PARDON ME. OH. GO AHEAD. THAT WOULD MAKE MORE SENSE THAN SHOWING REVENUES BY DEPARTMENT BECAUSE YOU DON'T CREATE YOU DON'T GENERATE REVENUES, AND I'M REALLY SURPRISED THAT YOU'RE SHOWING SO MUCH REVENUE BY DEPARTMENT.
I'VE NEVER SEEN SOMETHING LIKE THIS. SO I WAS JUST SHOWING REVENUE BY DEPARTMENT BECAUSE THE COMMISSION EXPRESSED INTEREST IN SEEING ANY BUDGET ITEM THAT WE SHARED LISTED BY DEPARTMENT. IT WAS MORE ABOUT THE EXPENSES.
YES. SO THERE IS ALWAYS I MEAN, EVERY CITY I'VE SEEN AND I'VE LOOKED AT A LOT OF BUDGETS, BUT THEY ALL HAVE WHERE THE MONEY COMES FROM. SO WHEN WE RECEIVE, FOR EXAMPLE, AND THEY SEE THIS IN A BANK FOR CASH FLOW.
YEAH. THE PROPERTY TAX IS COMING IN TO SALES, THE GRANTS.
SO YOU SHOULD HAVE SO THIS IS ALL THE REVENUE BY SOURCE.
I DIDN'T PRESENT THIS CITYWIDE BY SOURCE, WHICH I'M HAPPY TO DO, BUT THIS IS THE REVENUE BY SOURCE, WHICH IS WHAT YOU'RE TALKING ABOUT. YEAH. SO WHAT I DIDN'T INCLUDE THIS TIME THAT I DEFINITELY CAN IS THE BREAKOUT BY OUR SPECIFIC TAX TYPES.
OKAY, BUT THAT'S OUR REVENUE SOURCE. OKAY. THANK YOU.
JUST HAVE A QUICK COMMENT, TOO, IF I CAN, ON THIS SLIDE.
ON THE REVENUE SIDE WE HAVE RECEIVED $69 MILLION OUT OF 118 MILLION.
SO WE'VE GOT ABOUT 42% LEFT TO RECEIVE, AND WE'RE IN THE THIRD QUARTER, THE FOURTH QUARTER. SO IT WOULD BE A VERY HELPFUL TOOL IF WE COULD DEVELOP SOMETHING TO LOOK AT THE SORT OF THE ASYMMETRICAL TYPE OF REVENUE THAT WE'RE GETTING IN. YOUR SYMMETRICAL REVENUE WOULD BE LIKE A LEASE PAYMENT, AND YOU'VE GOT A QUARTER, QUARTER, QUARTER. THAT'S NOT DIFFICULT TO FORECAST, BUT THE REVENUE THAT'S DIFFICULT TO FORECAST WOULD BE YOUR
[01:00:03]
ASYMMETRICAL KIND OF REVENUE, THE KIND THAT COMES IN, SAY, ON YOUR TOT OR YOUR SALES TAX AND THOSE WOULD THOSE HAVE A WHAT WE CALL A SEASONALITY KIND OF AN ASPECT TO THEM, AND SO LIKE YOUR TOT AND YOUR SALES TAX WOULD HAVE A BIG HIT IN DECEMBER AND ALSO THE SUMMERTIME, AND PERHAPS WE COULD GET A LOOK AT THAT BALANCE OF THE UNRECEIVED TAXES OR PARDON ME, UNRECEIVED REVENUE BY LOOKING AT HISTORICALLY QUARTERLY FOR MAYBE FIVE YEARS IN THE PAST, AND LOOK AND SEE WHAT PERCENTAGE OF THEIR TOTAL WERE RECEIVED IN EACH QUARTER.SUMMARIZE THOSE COME UP WITH A MEAN FOR THE LAST FIVE YEARS, AND THEN COMPARE THAT WITH THE CURRENT YEAR, AND YOU'LL HAVE A NICE HISTORICAL BACKGROUND AND THEN WHAT YOU CAN DO IS YOU COULD PROBABLY ADD TWO, DON'T WANT TO TRY TO HELP YOU TOO MUCH ON THE ARCHITECTURE, BUT IF YOU ADDED TWO COLUMNS TO THIS, MAYBE ONE ENDS UP OR PARDON ME, MAYBE ONE WOULD BE LIKE YOUR INDEXED NUMBER BEING YOUR FIVE YEAR.
SO HOW FAR AND IF YOU CAN LOOK AT A CHART AND SEE THESE LINES FLOWING OFF ONE IS YOUR FIVE YEAR AVERAGE OF WHAT I EXPECT TO SEE QUARTER BY QUARTER, MONTH BY MONTH, AND THE OTHER ONE IS WHAT I'VE ACTUALLY RECEIVED ON THESE ASYMMETRICAL FUNDS, AND GET AN IDEA ABOUT IF THOSE LINES ARE OBVIOUSLY ARE NOT ARE NOT TOGETHER, THEN THERE'S A GAP, AND IT'S YOUR MEAN VARIANCE BETWEEN THOSE LINES THAT WE COULD FOCUS ON AHEAD OF TIME AND SAY, THIS HISTORICALLY HASN'T BEEN THE CASE. WE MAY BE HEADING INTO NEW TERRITORY.
AS OUR TREASURER SOLOMON SAID, WE MAY BE ON THE TOT OR SALES TAX MAY BE IMPACTED BY CURRENT ECONOMIC CONDITIONS THAT DIDN'T HAPPEN IN THE FIVE YEARS, BUT I THINK THAT WOULD BE SOME GOOD VISIBILITY FOR US TO LOOK AT THAT ON SORT OF CHARTED TERRITORY OF THAT PART OF THE REVENUE THAT WE EXPECT TO RECEIVE AND THAT GIVES, GIVES US A CHANCE TO ACT ON THAT AHEAD OF THE AHEAD OF THE CONCLUSION WHERE WE GET A REPORT THAT SAYS, HERE'S WHAT WE DID FOR THE YEAR. THERE'S NOTHING THAT THE FINANCE AND BUDGET COMMITTEE OR COMMISSION CAN DO ABOUT THAT.
SO THAT SO THAT KIND OF TIES OUR HANDS IN THAT CASE.
SO THANK YOU. ONE MORE QUESTION ON THE REVENUE.
SO THIS 50. SO SO SO FAR WE HAVE RECEIVED 58.2% OF THE REVENUE.
IS THAT WHAT YOU WERE EXPECTING OR IS THAT LOWER THAN WHAT YOU WERE EXPECTING.
SO AGAIN AS I SAID IN THE IN TOT IT'S A LITTLE BIT IT'S LESS THAN WHAT WE'RE EXPECTING.
WE'RE WATCHING THAT OUR UUT IT'S A LITTLE BIT LESS THAN WHAT WE'RE EXPECTING.
I DON'T THINK IT'S ALARMINGLY LESS THAN WE WERE EXPECTING.
OKAY. THANK YOU. THANK YOU. SO JUST TO ASK THAT QUESTION SLIGHTLY DIFFERENTLY.
SO THIS IS THIS TRACKS PRETTY WELL WITH WHAT WE EXPECT TO RECEIVE, AND AGAIN I WILL TO YOUR TO YOUR POINT COMMISSIONER SHERBIN, WE'RE HAPPY TO ADD IN OUR PRIOR YEAR AT THE SAME POINT, WE ACTUALLY USUALLY HAVE THIS IN OUR TEMPLATE AND HAVE RECEIVED MIXED FEEDBACK ABOUT THE USEFULNESS OF THIS. I THINK WE END UP SPENDING A LOT OF TIME SAYING, WELL, THIS HAPPENED THIRD QUARTER LAST YEAR, BUT YOU HAVE TO REMEMBER THIRD QUARTER LAST YEAR, X, Y, AND Z HAPPENED, BUT DEFINITELY WE LOOK AT THAT, AND THAT'S THE FIRST THING I DO WHEN I'M PUTTING THIS TOGETHER AS I LOOK THROUGH AND SAY, WHERE ARE WE.
WHERE WERE WE LAST YEAR? WHAT ARE OUR AVERAGES, YOU KNOW.
SO WE'RE DOING ALL OF THIS AND I'M HAPPY TO ADD THAT.
HAPPY TO ADD THAT DETAIL IN. THAT WOULD BE A NICE COMMENT FOR US TO.
SEE ALSO WHEN YOU DO HAVE A BIG VARIANCE ON ONE OF THESE REVENUE SOURCES TO SAY WE, HERE'S THE REASON AND THE EXPLANATION WE GOT ABOUT THE TOT FROM OUR TREASURER SOLOMON WAS WAS EXCELLENT IN THAT.
IN THAT WAY, WE CANNOT HELP US TO UNDERSTAND WHAT THE UNDERLYING CAUSES FOR THAT ARE.
THANK YOU. NOW, I REMEMBER FROM PREVIOUS REPORT THAT WAS INCLUDED.
IT WAS. YES. YEP. OKAY. SO WHY DID WE CHANGE THE WAY WE'RE DOING THE REPORT? I THOUGHT OF TRYING SOMETHING NEW BECAUSE I HAD HEARD SOME COMMENTS THAT IT WAS.
IT WAS A BIT REPETITIVE, AND IT WAS KIND OF A LOT.
SO BUT AGAIN, NUMBERS ARE NEVER A LOT FOR THE FINANCE COMMITTEE COMMISSION.
[01:05:02]
NO, NOT FOR US. SO I'M VERY HAPPY TO TAKE THAT FEEDBACK.YOU KNOW, HOWEVER MANY THAT I WAS WALKING THROUGH.
SO VERY, VERY HAPPY TO DO THAT AGAIN. THANK YOU.
YES. ONE QUICK ADMINISTRATIVE COMMENT. YES. SECOND TO THE LAST LINE FOR OVERHEAD.
YES. I THINK THAT'S SUPPOSED TO BE 50% INSTEAD OF 0.5%.
IT IS GREAT. I DON'T KNOW HOW THAT HAPPENED. THANK YOU.
SOMEBODY'S PAYING ATTENTION. YEAH. YES. THANK YOU.
OKAY, SO MOVING ON TO SPENDING. SO, LOOKING AT OUR SPENDING BY TYPE, PERSONNEL AND FRINGE.
WE HAVE OUR MAINTENANCE AND OPERATIONS. THIS IS EVERYTHING.
THAT'S NOT PERSONNEL. IT'S OUR CONTRACTUAL AND PROFESSIONAL SERVICES.
OUR SUPPLIES OUR FURNITURE EQUIPMENT. THAT'S MAINTENANCE AND OPERATIONS.
WE HAVE OUR INTERNAL SERVICE, AND WE HAVE A VERY SMALL CATEGORY FOR CAPITAL OUTLAY HERE, AND THEN WE HAVE TRANSFERS OUT, AND TRANSFERS OUT ARE WHERE WE BUDGET FOR OUR BOND PAYMENTS.
SO PERSONNEL IN FRINGE, WE ARE ACTUALLY PROBABLY GOING TO BE PRETTY CLOSE TO BUDGET.
WE'VE LOOKED AT THIS IN QUITE A BIT MORE DETAIL SINCE I DRAFTED THESE SLIDES, AND I THINK WE'LL BE AT ABOUT BUDGET WITH OUR PERSONNEL, WHICH I THINK IS SOMETHING WE'VE SHARED WITH THIS COMMISSION OVER THE YEARS, THAT WE DO WANT TO LOOK AT THIS CLOSELY.
AS YOU'RE AWARE, COUNCIL APPROVED A NUMBER OF NEW MOUS OVER THE LAST TWO YEARS, AND SO WE WERE KIND OF WATCHING THE SPENDING CLOSELY TO SEE WHERE THAT LINED UP WITH OUR BUDGET AND WE'RE ABOUT I THINK WE WILL END UP ABOUT AT OUR BUDGET HERE.
MAINTENANCE AND OPERATIONS I THINK WILL LIKELY EXPECT TO SEE SOME SAVINGS HERE.
AGAIN, WE CHARGE OURSELVES SO WE WILL SPEND 100% OF THAT CAPITAL OUTLAY IS A VERY TINY AMOUNT.
SO I'M NOT SURE IT'S WORTH GOING INTO, AND THEN TRANSFERS, WE WILL SPEND THAT ENTIRE AMOUNT BECAUSE THAT'S OUR BOND PAYMENT, AND WE HAVE MADE ALL THE BOND PAYMENTS. WE JUST HAVEN'T POSTED THEM TO OUR, OUR ACCOUNTS YET, AND THEN WE HAVE OUR GENERAL FUND SPENDING BY DEPARTMENT.
THIS IS A QUITE INTERESTING I DON'T KNOW IF YOU HAVE A SPECIFIC COMMENTS ON IT.
THIS IS LARGELY DRIVEN BY A FEW THINGS. ONE IS VACANCIES.
SO MANY OF OUR DEPARTMENTS, FOR WHATEVER REASON, HAVE HAVE VACANCIES THERE.
YOU KNOW, IF ANY OF YOU MANAGES PEOPLE OR MANAGE AN ORGANIZATION, YOU KNOW THAT THERE'S TURNOVER SO THAT GENERATES QUITE A BIT OF OUR SAVINGS, AND THEN SOMETIMES THE BUDGET WILL CONTAIN KIND OF ONE TIME LARGER ITEMS THAT EITHER THE DEPARTMENT HASN'T SPENT YET OR WILL NOT END UP SPENDING THIS FISCAL YEAR.
SO THAT'S, THAT'S KIND OF WHAT GENERATES THE DIFFERENCES IN SPENDING HERE.
IF YOU LOOK AT THE HIGHER AMOUNTS, IT GENERALLY MEANS THAT DEPARTMENT IS LIKELY FULLY STAFFED.
OR HAS. YEAH, THAT'S THE BEST EXPLANATION OF WHAT THAT PROBABLY MEANS.
ALSO JUST POINT OUT FOR FINANCE HERE WE HAVE A, WE HAVE A ONE TIME LARGE PAYMENT HERE THAT WE NEED TO ALLOCATE OUT TO THE REST OF THE CITY. SO OUR, OUR SPENDING SHOULD BE A BIT LOWER THAN THAT, BUT YEAH.
THANK YOU FOR INCLUDING. SO I WOULD KEEP THE OLD PRESENTATION AND THEN JUST ADD THAT AT THIS PORTION, BUT THIS IS SO NICE TO SEE, EVEN FOR THE PUBLIC TO SEE THAT ALMOST HALF OF OUR BUDGET GOES TO POLICE.
THAT'S AND THEN ANOTHER 20% GOES TO FIRE. SO THE YEAH, THE OTHER COMMUNITY SERVICE IS ONLY 8%, WHEREAS PUBLIC WORKS, THAT SHOULD BE I DON'T KNOW IF YOU'VE EVER COMPARED THIS TO OTHER CITIES, BUT I MEAN, FOR PUBLIC WORKS, WE HAVE A VERY SMALL AMOUNT.
YEAH, BUT JUST TO SAY THIS IS GENERAL FUND ONLY.
SO IF WE CONSIDERED ALL FUNDS, PUBLIC WORKS WOULD BE A MUCH LARGER PERCENTAGE BECAUSE THEY, THEY MANAGE A LOT OF THE OTHER FUNDS, THEY MANAGE TRANSIT.
THEY HAVE HARBOR, TIDELANDS, HARBOR, UPLANDS.
THEY DO OUR THEY MANAGE OUR ENTERPRISE FUNDS.
SO I DON'T HAVE THIS CHART FOR COST RECOVERY COMING TO THEM.
[01:10:05]
THEY DO USE FUNDS FOR SOME OF THEM, AND THE ENTERPRISE FUNDS, ENTERPRISE FUNDS.THOSE SHOULD BE THOSE ARE THOSE SHOULD BE COST RECOVERY, BUT NO, AND AGAIN WHAT THESE NUMBERS HERE FOR POLICE AND FIRE REALLY TELL US IS THAT IT'S LARGELY THE COST OF PERSONNEL. I MEAN THEY HAVE OTHER LARGE COSTS IN THERE AS WELL RELATED TO EQUIPMENT AND OTHER PURCHASES, BUT IT'S LARGELY PERSONNEL AND THEN PERSONNEL ALSO GENERATES LARGER OVERHEAD COSTS, WHICH ARE ALSO SHOWN HERE.
WATERFRONT ECONOMIC DEVELOPMENT. YOU GUYS ADDED ANOTHER PERSON TO THAT? WE DID. SO THIS THIS WILL LOOK A LITTLE. YES.
OKAY. SO THE ACTUAL SPENDING SHOULD LOOK WILL PROBABLY LOOK A LITTLE BIT LARGER LAST NEXT YEAR BECAUSE WE'VE BEEN ABLE TO FILL POSITIONS AND ADD A POSITION, BUT YES, AND AGAIN, WATERFRONT AND ECONOMIC DEVELOPMENT IS IN THE GENERAL FUND, AND THE MAJORITY OF THEIR EXPENSES ARE ACTUALLY IN THE HARBOR TIDELANDS AND UPLANDS FUNDS.
SO THIS IS JUST A PORTION OF THE WATERFRONT DEPARTMENT.
DOES THAT INCLUDE ANY PROVISION FOR THEIR RETIREMENT? IT INCLUDES I MEAN IT INCLUDES OUR THE PENSION CONTRIBUTIONS, BUT NOT THE NOT THE UNFUNDED LIABILITY.
NO, NOT THE PRESENT VALUE OF WHAT IT'S GOING TO COST US TO PAY THAT POLICE DEPARTMENT.
SO THAT POLICE DEPARTMENT NOW COULD HAVE ADDITIONAL ACCRUED PENSION COSTS THAT AREN'T REALLY INCLUDED AT THE CURRENT BASIS THAT WE WILL. IT'S TRUE. HOWEVER, I ACTUALLY TALKED TO OUR ACTUARY ABOUT THIS, OUR CALPERS ACTUARY.
THANK YOU. SO I JUST ASKED HIM, YOU KNOW, CAN YOU THINK OF A GOOD WAY TO CALCULATE THIS? HE TOLD ME HONESTLY, IT DOESN'T MAKE SENSE TO TRY AND DO IT JUST BECAUSE OF HOW MUCH AND HOW FREQUENTLY THINGS CHANGE. IT'S SOMEWHAT OF AN EXERCISE. WHAT WE CAN DO IS BREAK DOWN OUR UNFUNDED ACCRUED LIABILITY.
WE HAVE THAT BROKEN DOWN BY POLICE AND OR BY SAFETY AND MISCELLANEOUS.
SO THAT'S OUR NON-SWORN AND SWORN EMPLOYEES. SO WE CAN SORT OF WE COULD COME UP WITH AN ALLOCATION BASED ON THAT BREAKDOWN. WHAT I WOULD LOVE TO SEE PERSONALLY WOULD BE IF WE ADD A POSITION, LET'S JUST SAY WE ADD A NEW POLICE OFFICER. WHAT DOES THAT WHAT'S THE DECISION THAT THE CITY COUNCIL IS ACTUALLY MAKING IN TERMS OF THE PRESENT VALUE OF THE FUTURE COST OF HIS PENSION. WELL, SO AGAIN, THE COST FOR HIM ON A YEARLY BASIS FOR THE SALARY THAT HE'S ACTUALLY GETTING.
SO I WOULD ALSO LOVE TO DO THIS, BUT AGAIN, THE IDEA OF YOUR ONGOING PENSION CONTRIBUTIONS IS AT THE ASSUMPTIONS THAT CALPERS OPERATES ON. YOUR, YOUR ONGOING CONTRIBUTION, WHICH WE DO BUDGET FOR AND YOU DO SEE HERE SHOULD FULLY PAY FOR THAT.
THAT'S WHAT THOSE CONTRIBUTION NUMBERS ARE BASED ON.
THAT DOESN'T HAPPEN BECAUSE INEVITABLY, YOU KNOW, CALPERS DOESN'T NECESSARILY MAKE THEIR THEIR TARGET RATE EVERY YEAR, BUT IT'S DIFFICULT TO COME UP WITH A NUMBER WHEN THE CONTRIBUTION IS BASED ON COVERING THAT COST FULLY.
SO I KNOW THIS IS PUBLIC INFORMATION IS SEPARATE THE COST OF EMPLOYEES VERSUS THE REST. SO THE CONTRACTUAL AGREEMENTS, BECAUSE THAT WOULD BE A GOOD INFORMATION FOR US TO SEE.
HOW MUCH MONEY DO WE SPEND ON STAFF VERSUS CONTRACTS AND CONSULTANTS? I MEAN, THIS I S THAT TOTAL FOR THE GENERAL FUND.
SO OUT OF $121.2 MILLION. YEAH. FOR EACH DEPARTMENT.
OH FOR EACH DEPARTMENT, YEAH. OF COURSE FOR THAT SLIDE, AND THE REASON, YOU KNOW, THAT COMES UP BECAUSE I'M LOOKING AT IT AND I WAS ASKING YOU ABOUT ECONOMIC DEVELOPMENT AND I'M SORRY TREASURER I DON'T I'M GIVING THIS AN EXAMPLE.
I'M NOT TRYING TO PICK ON YOU, BUT THE CITY TREASURER'S OFFICE IS ONE STAFF AND THEY HAVE A BUDGET OF THE $400,000, AND I KNOW THEIR CONTRACT IS ONLY $20,000 AND THEN ANOTHER FIVE TO US BANK AND THEN WE HAVE ECONOMIC DEVELOPMENT.
[01:15:01]
THAT SHOULD BE A ROBUST ENTITY. SO AGAIN, THIS IS ONLY THE GENERAL FUND PORTION OF THE WATERFRONT AND ECONOMIC DEVELOPMENT DEPARTMENT, AND AGAIN WE ALWAYS WE ALWAYS FOCUS ON THAT'S THE DEPARTMENT THAT WE SHOULD YOU KNOW.I'M JUST SAYING THEIR MARKETING AND FROM GENERAL FUND NOT FOR COST RECOVERY.
I'M LOOKING AT THIS NOT FOR COST RECOVERY ENTERPRISE FUND, BUT I'M LOOKING AT IT AS A FUND THAT WE D EVELOP, WE USE FOR THE DEVELOPMENT AND FOR, FOR ECONOMIC DEVELOPMENT TO HAVE ONLY 200 IN THERE THAT THEY NEED TRAVEL OR MARKETING THAT, I MEAN, I WOULD ADVISE THAT THEY REALLY INCREASE THAT AMOUNT.
YEAH. THAT'S ALL. SO THEN WE HAVE CITYWIDE SPENDING, AND AGAIN, THIS IS THE SAME BREAKDOWN AS WE'VE SHOWN. WE HAVE OUR GENERAL FUND, OUR SPECIAL REVENUE FUNDS, AGAIN, EXCEPT FOR THE GENERAL FUND AND OUR ENTERPRISE FUNDS, THE SPENDING TO DATE ISN'T VERY INSTRUCTIVE BECAUSE THESE TEND TO BE VERY PROJECT BASED. IT ALSO INCLUDES CAPITAL, WHICH AGAIN, WE FULLY BUDGET FOR OUR PROGRAMED CAPITAL AND WE SPEND ONLY A SMALL PERCENTAGE OF THAT EVERY YEAR. SO THE PERCENT SPENT APART FROM THE GENERAL FUND AND THE ENTERPRISE FUNDS IS NOT SUPER INSTRUCTIVE, BUT YOU'LL SEE, ENTERPRISE FUNDS ARE BELOW 50% SPENT.
THAT'S LIKELY BECAUSE THE ENTERPRISE FUNDS HAVE CAPITAL PROJECTS WHICH THEY'RE OF WHICH THEY'RE ONLY GOING TO SPEND A SMALL PORTION GENERAL FUND NO LONGER HAS CAPITAL BUDGETED THERE. SO THAT'S SOME OF THE, THE DIFFERENCE HERE.
SO WITH INCLUDING ALL OUR FUNDS, WE'RE AT A LITTLE BELOW 50% SPENT, AND AGAIN, THIS IS PRETTY CONSISTENT WITH PRIOR YEARS GENERAL FUND. AGAIN, I THINK OUR PERSONNEL IS GOING TO BE IS GOING TO COME CLOSE TO BUDGET, WHERE I THINK THE PAST TWO YEARS WE'VE HAD PRETTY SIGNIFICANT SALARY SAVINGS.
SO THAT'S A DIFFERENCE, AND IT'S GOING TO IT GIVES US A LITTLE BIT LESS ROOM TO WORK WITH.
WHERE IS THE THAT CALPERS RESERVE FUND IN HERE? THAT'S WITHIN THE SPECIAL REVENUE FUNDS. SO AGAIN, WE REPORT ON IT, BUT THAT MONEY IS JUST SITTING THERE.
WE'RE NOT SPENDING OUT OF THAT FUND. OKAY, SO SPECIAL REVENUE WHAT ELSE DOES THAT INCLUDE.
YOU KNOW WHAT I'LL DO IN OUR NEXT ONE IS I'LL BRING BACK OUR WHOLE BREAKOUT.
OF ALL THE FUNDS THERE ARE, I THINK THERE ARE ABOUT.
YOU USED TO. IT USED TO BE IN A PRESENTATION BEFORE.
I DIDN'T BREAK OUT EVERY SINGLE ONE OF THEM BECAUSE HONESTLY, THERE'S ABOUT I THINK THERE'S.
HOW MANY ARE THERE, ERIN, LIKE 20? WELL, THE PROBABLY THE MAJOR ONES AT LEAST.
THE MAJOR ONE IS OUR INTERGOVERNMENTAL GRANTS FUND.
WE HAVE A COMMUNITY DEVELOPMENT BLOCK GRANT FUND.
WE HAVE OUR HOUSING. WE HAVE OUR HOUSING FUND.
WE HAVE OUR CALPERS RESERVE, WHICH IS ABOUT 8 MILLION OF THAT.
SO YES, WE ARE WE'RE HAPPY TO BREAK THAT DOWN FOR YOU.
BREAK ALL THE EVEN THE ENTERPRISE FUND. WHICH ONE IS THE SEWER OR THE TRASH OR WHATEVER.
YEAH. OKAY. THANK YOU, BUT AGAIN, IN TERMS OF SPENDING, A LOT OF TIMES THE SPECIAL REVENUE IS JUST NOT, NOT NOT AS INSTRUCTIVE, BUT YES, WE'LL WE'LL PULL THAT THESE GO TO THE GENERAL FUND, NOT THE GENERAL FUND IN THE SAME BUCKET WITH ALL THE MONEY THAT TREASURER RECEIVES.
SO OUR POOLED CASH. SO WE, WE HAVE OUR POOLED CASH AND THEN WE HAVE OTHER ENTITIES.
THAT'S ONLY THE GENERAL FUND OR THOSE THOSE ARE THE THOSE ARE THE CITY FUNDS WHICH ARE OUR GENERAL FUNDS ONE THROUGH ONE THROUGH 800. THAT'S NOT GOING TO HELP YOU, BUT YES, THOSE ARE, THOSE ARE THOSE ARE OUR CITY FUNDS, AND WE ALSO HAVE OUR OTHER ENTITIES. SO FOR EXAMPLE, THE SPECIAL REVENUE, WHERE DOES THAT GO.
SO THE SPECIAL REVENUE SHOULD BE LIKE WHERE IS IT SITTING TODAY.
IS IT IN A B OF A ACCOUNT. IT'S A SEPARATE ACCOUNT THAN THE CHECKING ACCOUNT.
[01:20:05]
OR IS IT IN A DIFFERENT BANK? IT IS IN OUR. SO IT'S IN OUR MAIN BANK. YES. OKAY, AND DO THEY, AND I KNOW WHEN YOU KNOW.SO IN A MAIN BANK THERE ARE DIFFERENT ACCOUNTS.
IS THAT A SEPARATE ACCOUNT. LIKE FOR EXAMPLE 001 WOULD BE THE GENERAL.
YOU KNOW THAT'S, THAT'S KIND OF THE ACCOUNT WHERE YOU PAY YOUR CALPERS FROM OR YOU I GUESS, AND THAT'S WHAT I'M TRYING TO UNDERSTAND. ARE YOU KEEPING THEM ALL INTO SEPARATE ACCOUNTS, OR IS THAT ALL POOLED INTO ONE? SO, AND THEN AND THEN IN YOUR ACCOUNTING SIDE YOU DO THE MATH WHICH.
SO IT'S THE SECOND ONE. SO THE VAST MAJORITY OF OUR FUNDS ARE POOLED INTO ONE ACCOUNT.
WE DO KEEP OTHER OUR OTHER ENTITIES SEPARATE LIKE OUR, OUR SUCCESSOR AGENCY, OUR HOUSING AUTHORITY AND OUR REDEVELOP AND OUR COMMUNITY FINANCING AUTHORITY. SO WE HOLD THOSE SEPARATELY AND THE REST IS POOLED CASH AND WE DO THE ACCOUNTING.
OKAY. SO SO THEN THE SPECIAL REVENUE IS WITH TREASURER'S OFFICE.
THEN IT'S IN THE SAME ACCOUNT AS THE TREASURER'S OFFICE.
T HAT IS ALSO A SEPARATE ACCOUNT SO I APOLOGIZE OKAY.
YEAH BUT I CAN I CAN BREAK IT OUT FOR YOU. OKAY, AND THE REASON I ASK IS BECAUSE BECAUSE FROM WHAT I'M SEEING IS THAT THE TREASURER DOESN'T HAVE ANY OF THESE FUNDS THAT HE CAN USE TO INVEST, AND THIS WAS LIKE THE BEST TIME TO MAKE MONEY.
THAT'S THE REASON I'M ASKING. SO WE'LL WE'LL WE'LL WE'LL DISCUSS IT AND WE'LL.
YEAH. OKAY, AND I'M GOING TO ASK THE TREASURER NEXT TIME.
OKAY, AND I DO HAVE A VERY, VERY HIGH LEVEL. JUST LOOK AT OUR CAPITAL AGAIN IN JUST AS AN UPDATE.
I'M SORRY TH IS THIS TABLE IS SO SMALL. SO WE HAVE A TOTAL OF 146 PROJECTS ACROSS ALL OF OUR FUNDS.
I WILL NOTE THAT THIS THESE NUMBERS EXCLUDE ENCUMBRANCES.
SO THIS IS JUST THE AMOUNT SPENT FOR THE YEAR.
THESE ARE TOTALS BY FUND, AND THEN I ALSO INCLUDED AS AN ATTACHMENT.
DOES NOT SHOW UP WELL IN THE POWERPOINT BUT OUR YEAR TO DATE SPENDING BY PROJECT.
WHICH IS, I BELIEVE, WHAT THE COMMISSION HAS BEEN LOOKING FOR OR ONE OF THE ITEMS, AND HERE IS MY RECOMMENDATION TO RECEIVE AND FILE THE REPORT.
WHO ELSE IS THIS? THIS. WHO ELSE DO YOU PRESENT THIS REPORT TO? CURRENTLY JUST THE BUDGET AND FINANCE COMMISSION.
OH, WOW. I MEAN, OBVIOUSLY, WE SHARE THE INFORMATION WITH THE CITY MANAGER.
I BELIEVE THE CITY COUNCIL DOES WATCH THESE MEETINGS, SO THEY ARE AWARE OF THIS INFORMATION AS WELL BUT IF YOU'LL REMEMBER, WE ARE THE YOU KNOW, WE'RE THE MAIN AUDIENCE FOR THIS.
I PREFER NUMBERS I DO NOT LIKE. I PERSONALLY DO NOT LIKE GRAPHICS, AND THAT'S TO ME FLUFF, AND IT TAKES AWAY FROM DATA, AND I'M A DATA PERSON.
I LIKE TO JUST SEE NUMBERS. I DID ENJOY I ALREADY SAID IT.
THE PREVIOUS VERSIONS AND THEN ANYTHING THOUGH ANY DATA THAT YOU PRESENTED DON'T REMOVE, YOU CAN ADD I PERSONALLY CAN YOU KNOW, YOU CAN NEVER HAVE ENOUGH DATA. SO I'LL TAKE ALL THE DATA YOU HAVE.
I DON'T CARE ABOUT PRETTY STUFF. ANY OTHER QUESTIONS? I THINK WE NEED SOME GRAPHICS TOO, BECAUSE THAT SHOWS US THE TRENDS.
SO FROM THAT VIEWPOINT, I THINK A PICTURE IS WORTH A THOUSAND WORDS AND THOUSAND THE NUMBERS, BUT WE DO NEED NUMBERS, AND WE HAVE ASKED FOR THESE NUMBERS FOR A VERY LONG TIME.
GO AHEAD. COMMISSIONER SAMPLES. I THINK I'M THINKING OUT LOUD.
SO IF I'M OFF BASE, LET ME KNOW, BUT WILL DO.
FOR PURPOSES OF THIS MEETING I THINK A PRESENTATION SIMILAR TO WHAT WE HAVE WITH THE SUMMARY INFORMATION, IN MOST CASES, IT'S ADEQUATE, MAYBE A LITTLE BIT MORE DETAILED, BUT NOT SIGNIFICANTLY MORE THAN THIS,
[01:25:06]
AND THEN THE ATTACHMENT, JUST LIKE YOU DID WITH THE PDF, WITH ALL THE SUPPORTING DATA, I THINK THAT'S RELEVANT, BUT TO SIT HERE FOR HOURS, GOING THROUGH PAGE AFTER PAGE OF PDF TABLES I THINK DOESN'T MAKE ANY SENSE.SO JUST MY TWO CENTS. AGREED I DO YEAH. WE I DON'T REMEMBER PDF FILES. WELL THERE'S PDF FILES. THERE IS A SUPPLEMENT TO THIS.
THERE'S AN ATTACHMENT, AND I MEAN WE'VE RECEIVED TABLES.
SO WE HAD A TABLE IN THE IN THE TREASURER'S REPORT THAT IT BECAME AN EYE CHART, AND IT WAS THE INFORMATION THAT WAS BEING REQUESTED AND IT WAS THERE. IT WOULD BE NICE IF WE HAD IT BEFORE THE MEETING SO THAT WE CAN REVIEW IT, BUT IT TURNS INTO AN EYE CHART. YEAH, BUT SHE DID NOT PRESENT THOSE.
I MEAN, SHE ONLY ATTACHED IT FOR US TO HAVE ADDITIONAL INFORMATION.
SHE DID NOT PRESENT THOSE. I HEAR THAT, BUT I'M JUST I THINK WHAT I'M HEARING YOU SAY IS YOU'RE ASKING FOR THAT ADDITIONAL DETAIL, AND I AGREE THE ADDITIONAL DETAIL IS GOOD. DO YOU REMEMBER THE LAST LAST YEAR'S PRESENTATION? I'M JUST SAYING THE ADDITIONAL DETAIL IS GOOD, BUT I THINK THE SUMMARY INFORMATION SIMILAR.
THAT'S DISCUSSION POINTS, AND THEN IF THERE'S DETAIL THAT WE WANT TO GO INTO, WE CAN REFER TO, YOU KNOW, ANNEX TWO, PAGE 14. WHAT'S THIS LINE ITEM OR WHAT ARE THESE THREE LINE ITEMS? INSTEAD OF TAKING UP EVERYONE'S TIME GOING THROUGH EVERY PAGE IN THOSE SPREADSHEETS.
YEAH, SHE DID NOT GO THROUGH EVERY PAGE. SHE DID NOT TAKE ANYBODY'S TIME WITH THOSE SPREADSHEETS.
WE'RE FREE TO LOOK THROUGH THEM. I THINK WE'RE JUST TRYING TO UNDERSTAND TAKING WHAT WE HAVE TONIGHT AND LISTENING TO WHAT WE'RE BEING ASKED TO ADD AND SAY S OMEWHERE BETWEEN THOSE TWO WOULD BE A NICE PLACE TO LAND, AND THOSE PEOPLE THAT WANT REAL AS YOURSELF, THAT WANTS TO REALLY GET INTO, SAY, LINE ITEM DETAIL, HAVE IT AVAILABLE, BUT IT WOULD NOT BE PART OF OUR TECHNICALLY, THE PART OF THE PRESENTATION ITSELF. THAT'S ALL I WAS TRYING TO CLARIFY IN MY MIND.
ONE THING THAT I DIDN'T I THINK WE'RE IN VIOLENT AGREEMENT.
ONE THING I DIDN'T REALIZE IS THAT THIS IS PRESENTATION.
THAT'S SO THIS TYPE OF PRESENTATION, YOU KNOW, THE BUDGET STUFF IS ONLY PRESENTED TO THIS COMMITTEE.
SO THE COUNCIL, IF THERE IS ANYTHING, ANY QUESTIONS, ANY DOUBTS, ANY RECOMMENDATIONS, THEY'RE GOING TO COUNT ON THIS COMMITTEE TO BRING THAT UP, AND I DIDN'T REALIZE THAT SHE DOES NOT PRESENT THIS TO DIRECTLY TO COUNCIL.
COUNCIL CAN GO AND WATCH AND THEY HAVE ACCESS JUST LIKE EVERYONE ELSE, BUT THIS IS THE ONLY COMMITTEE THAT HAS A CHANCE TO GO BACK AND FORTH, ASK QUESTIONS, CLARIFY ITEMS, AND NOW I'M THE ONE TALKING OUT, YOU KNOW, THINKING OUT LOUD, BUT I JUST REALIZED THAT. I DO FEEL THE BREAKDOWN BY DEPARTMENT JUST DOESN'T MAKE ANY SENSE.
YOU DO NOT CREATE REVENUES, NOR DO YOU SPEND MONEY.
IT SHOULD BE CAPITAL IMPROVEMENT PROJECTS OR WHAT [INAUDIBLE] .
I'M HAPPY TO REMOVE THE REVENUE BY DEPARTMENT BREAKDOWN.
HAPPY TO REMOVE THAT SHE COVERED. DO I HAVE A MOTION TO OR ARE THERE ANY.
JUST BEFORE. THERE IS NO. SORRY. NO PUBLIC COMMENT ON ZOOM AND NO ECOMMENTS AND NO COMMENTS IN THE PHYSICAL ROOM? NO. OH, SORRY. OKAY. ONE MORE TIME. WHAT'S YOUR NAME? JIM. OKAY. THANK YOU. JIM. SORT OF REALLY SYMPATHIZE WITH YOU, BECAUSE THIS REPORT REALLY DOESN'T GIVE YOU A BASIS TO MAKE RECOMMENDATIONS TO THE COUNCIL.
IT JUST TELLS YOU WHAT PERCENT WAS SPENT. I THINK IT'S QUITE INADEQUATE.
I DON'T SEE HOW YOU CAN PERFORM THE FUNCTION.
WHICH CHAIRPERSON ALLEN, YOU DEFINITELY WERE RIGHT ABOUT THAT.
YOUR FUNCTION IS TO ADVISE THE COUNCIL ON WHAT'S HAPPENING, AND YOU KNOW, THIS ECONOMY IS IS VERY DYNAMIC RIGHT NOW AS WE HEARD THE PRESENTATION AND IT IT AFFECTS AFFECTS THE FINANCES OF THE CITY, AND FRANKLY, I THINK THE CITY IS KIND OF IN JEOPARDY BECAUSE THE SOURCES OF REVENUE ARE DECLINING AND THE COSTS
[01:30:01]
REMAIN FIXED AND CLIMBING. SO IN ORDER FOR YOU TO DO PROPERLY ADVISE THE COUNCIL, I THINK YOU NEED A MUCH BETTER PRESENTATION. IT'S JUST MY OPINION. THANK YOU.THANK YOU. THANK YOU. ANYONE ELSE? [INAUDIBLE].
MOTION, RECEIVE AND FILE AND I AGAIN I'M JUST GOING TO SAY TO BE CLEAR FOR THE MINUTES AND SO NEXT YEAR SO THAT WE LAST YEAR'S PRESENTATION AND THEN PLUS ADDITIONAL INFORMATION DO I HAVE A SECOND? SECOND. SECOND. ALL IN FAVOR. AYE, AYE. ANY NAYS? MOTION CARRIED UNANIMOUSLY, AND NOW WE'RE ON ITEM K COMMISSION MEMBER ITEMS AND FUTURE COMMISSION
[K. COMMISSION MEMBER ITEMS AND FUTURE COMMISSION AGENDA TOPICS]
AGENDA TOPICS. SO ONE OF THE ITEMS SINCE THE SINCE THE GENTLEMAN WHO SUGGESTED INITIALLY THIS ITEM.SO IT IS AND IF WE CAN WE NEED TO REWARD THAT, BUT IT'S I ONE INITIALLY IT CAME FROM GM AND HE BROUGHT US A VERY GOOD POINT ABOUT LONG TERM PLANNING, AND WE DISCUSSED THAT A LITTLE BIT, AND THEN WE DIDN'T KNOW WHERE TO GO WITH IT.
SO WE SAID, LET'S JUST KEEP PUTTING IT ON THE AGENDA UNTIL WE FIGURE OUT WHAT WE, YOU KNOW, HOW WE CAN ADDRESS THIS, AND THEN THERE ARE OTHER ITEMS AS WELL, BUT I WANT TO BEFORE WE GO TO THE HOMELESSNESS AND THE CAPITAL PROGRAM, I WANT TO KIND OF THINK, WHAT WHAT CAN WE DO WITH WITH THE LONG TERM PLANNING? WHAT CAN WE DISCUSS OR WHAT KIND OF ADVICE WE CAN GIVE TO COUNCIL? I MEAN, IT IS A GREAT POINT THAT HE BROUGHT UP AND THAT WAS A FEW MONTHS AGO, BUT WE DIDN'T GO ANYWHERE WITH IT, AND I DIDN'T WANT US TO FORGET ABOUT IT, BUT WE KIND OF WHAT, YOU KNOW, JUST FOR CLARIFICATION IS IF WE'RE LONG-TERM PLANNING IN GENERAL OR IS IT RELATED TO THE BUILDING MAINTENANCE, SO LONG TERM PLANNING, THE WAY WHEN JIM BROUGHT IT UP, IT WAS ABOUT YOU KNOW, WE KNEW THESE REPAIRS.
THE POLICE STATION, FIRE STATION REPAIRS WERE GOING TO COME UP AND WE HADN'T PLANNED ANYTHING FOR IT, AND THEN, YOU KNOW, 50 YEARS OR 20 YEARS, WHATEVER IT IS.
WHY DIDN'T WE HAD PLANNED FOR IT THAT WE HAD TO GO AND RAISE TAXES? SO THAT'S HOW THE IDEA CAME UP, AND I WANTED TO AND HE I THINK HE HAS A GOOD POINT.
SO I WANTED TO ADDRESS THAT, AND WHAT, FOR EXAMPLE, WHEN WE HAVE OUR PUBLIC WORKS FACILITIES THAT NEED TO BE REPLACED IN THE LONG RUN, ARE WE GOING TO TRY TO PASS ANOTHER TAX? AND WHAT HAPPENS IF THE TAX DOESN'T PASS? THEN WE HAVE TO GO AND SELL PROPERTY AND BORROW BONDS.
OR JUST A QUICK COMMENT IF I CAN. I THINK MY UNDERSTANDING ABOUT THOSE TYPE OF CAPITAL EXPENSES IS THAT THEY'RE TYPICALLY FINANCED BY BONDS, AND THE REASON, REASON FOR THAT IS BECAUSE YOU WANT THE UTILIZATION AND THE COST TO BE OFFSET AGAINST EACH OTHER.
IF WE BUDGET FOR THE REPLACEMENT OF A FACILITY THAT'S GOING TO TAKE PLACE TEN YEARS FROM NOW, WE'RE NOT MATCHING THE REVENUE GENERATION WITH THE BENEFIT.
SO I THINK, GENERALLY SPEAKING, THAT THIS IS A PRETTY TYPICAL WAY OF FINANCING A CONSTRUCTION WHICH IS NOT THE SAME AS BUILDING MAINTENANCE, WHICH NEEDS TO BE DONE ON A CURRENT OPERATING.
I THINK IT'S IMPORTANT TO POINT OUT THAT THIS IS NOW TURNING INTO A DISCUSSION OF POLICY AND PROCESS AND RECOMMENDATIONS, AND THAT'S NOT ON OUR AGENDA. IT IS ON OUR AGENDA.
IT'S ITEM I AND I CAN ASK TO GO BACK TO ITEM I BECAUSE WE KIND OF SKIPPED IT BECAUSE WE SAID WE'RE GOING TO GO TO THE BECAUSE WE HAD A TREASURER WAITING FOR PRESENTATION.
I DIDN'T WANT TO TAKE HIS TIME. SO WE KIND OF SKIPPED IT'S ITEM I ONE.
WELL, IF IF YOU RECALL, WE HAD PART OF THAT CONVERSATION.
WHAT I AM ASKING WHEN HE WAS HERE. OKAY, SO WHAT I'M ASKING RIGHT NOW IS WHAT SHOULD WE DO WITH THIS ITEM? SHOULD WE BRING IT BACK? DO WE HAVE A PLAN OR SHOULD WE KILL IT? THAT'S WHAT I'M ASKING RIGHT NOW. WHAT DO YOU GUYS THINK? IS THERE HOPE FOR THIS ITEM TO BE ON THE AGENDA? SO I THINK IT MAKES SENSE. I MEAN, AS THE NEWEST PERSON HERE WOULD BE HELPFUL TO HAVE SOME CONTEXT.
SO IF THERE'S A DOCUMENT THAT IS THAT EXISTS AT SOME PLACE, WOULD BE GREAT TO READ THE DOCUMENT AND UNDERSTAND IT WAS IT WAS A VERY LOGICAL, COMMON SENSE QUESTION THAT CAME FROM PUBLIC THAT HE LITERALLY A VERY SIMPLE QUESTION, YOU KNOW, YOU KNOW, YOU KNOW, THESE REPAIRS ARE COMING AND WHAT HAS THE CITY DONE TO PLAN FOR THEM FOR THESE REPAIRS?
[01:35:07]
SO THERE'S A GENERAL PRINCIPLE THAT IF IT'S A LONG TERM ASSET, YOU WANT TO FIND IT.YOU WANT TO FINANCE IT WITH A LONG TERM BOND AND NOT IT SHOULDN'T BE FINANCED OUT OF YOUR REVENUE, AND SO THAT SORT OF MAKES SENSE IS THE QUESTION THEN CAN WE ANTICIPATE WHEN WE NEED TO FINANCE THESE KINDS OF ASSETS TO SORT OF PLACE THE BONDS OR GET THE TIMING OF THESE BONDS PLACED BETTER? IS THAT THE QUESTION OR IS THE QUESTION HOW SHOULD THEY BE FINANCED, WHICH I THINK HAS BEEN ANSWERED? YOU WANT TO USE THE BOND MARKET TO FINANCE THEM? YEAH. THAT'S TRADITIONALLY THAT'S HOW IT'S BEEN DONE.
AS I RECALL, WE PUT THIS ON THE AGENDA BECAUSE WE DIDN'T HAVE AN ANSWER TO THAT.
PART OF THAT HAS TO DO, I BELIEVE, WITH TALKING TO NOT JUST FINANCE, BUT ALSO THE CITY MANAGER AND POSSIBLY THE PUBLIC WORKS DIRECTOR, AND FIND OUT WHY AND HOW THEY DO WHAT THEY DO.
BECAUSE RIGHT NOW WE'RE SPECULATING ON WHAT THEY DO AND WHY THEY DO IT WITH NO BASIS TO YOUR POINT.
SO I THINK THIS SHOULD BE LEFT ON THE AGENDA THE WAY IT IS, AND PART OF THE REASON WE PUT IT ON THE AGENDA AND WE I DON'T THINK WE INTENDED TO HAVE THAT DISCUSSION TONIGHT. I BELIEVE THAT WE IN OUR DISCUSSION, WE TALKED ABOUT DEFERRING IT UNTIL AFTER ALL THE BUDGET WORK IS DONE SO THAT EVERYBODY HAS TIME TO ACTUALLY ANSWER THE QUESTION. OKAY.
SO I SUGGEST THAT WE LEAVE THIS WHERE IT'S AT, LEAVE IT ON FOR NEXT MONTH AND FIGURE OUT AT THAT POINT, WELL, LET'S SEE, NEXT MONTH IS JUNE. SO THAT IS BUDGET MONTH.
SO WE DON'T WANT TO DISCUSS NEXT MONTH THEN PROBABLY JULY OR AUGUST.
OKAY. WELL STEPHANIE, YOU TELL US WHEN WOULD IT BE A GOOD BECAUSE WE WANT TO INVITE I THINK HE CAN BECAUSE THIS WAS AN ITEM. SO I'M OKAY FOR HIM TO COMMENT, PLEASE.
YES. I'LL JUST ANNOUNCE WHEN WE DO PUBLIC COMMENT.
SO IF YOU'RE DONE DISCUSSING WELL BECAUSE WHEN IT'S AN ITEM AND THIS IS SOMETHING THAT HE BROUGHT UP, I DON'T WANT TO TAKE IT AS A PUBLIC COMMENT, BUT I KIND OF, YOU KNOW, BUT I WANT TO HAVE.
YEAH, IT'S NOT THOUGH. RIGHT, BUT WHEN, WHEN SOMETIMES, YOU KNOW, WHEN THERE ARE ITEMS THAT IS RELATED TO SOMEONE, THEY CAN COME AND, YOU KNOW, I CAN ASK QUESTIONS TO HIM AND HE CAN ANSWER ME BACK.
THAT'S OKAY. THAT'S OUR DISCUSSION. THEN WE OPEN IT TO THE PUBLIC, AND IF YOU WANT TO ASK QUESTIONS, YOU CAN OKAY. WE CAN. OKAY. YEAH. I JUST WANTED YOU TO FINISH YOUR DISCUSSION HERE, AND THEN WE CAN OPEN IT BACK UP TO THE PUBLIC.
ARE WE FINISHED WITH OUR DISCUSSION? CAN WE ASK NOW THE PUBLIC, TOO? WELL, I THINK WE WERE AT THE POINT OF ASKING WHEN THIS MIGHT BE BROUGHT BACK TO THE COMMITTEE.
SO I GUESS THAT JUST DEPENDS WHAT THE COMMISSION IS LOOKING FOR.
YEAH. WHAT DO WE WANT FROM THEM? WELL, ONCE AGAIN, I'M TRYING TO REMEMBER BACK.
I BELIEVE THAT THE DISCUSSION WAS HOW DOES THE CITY GO ABOUT BUDGETING FOR MAJOR UPGRADES, REPAIRS AND THINGS LIKE THAT? DO WE HAVE WE KNOW THAT WE HAVE CERTAIN SET ASIDES FOR THINGS LIKE VEHICLE REPLACEMENT AND TECHNOLOGY REPLACEMENT. DO WE DO ANYTHING WITH BUILDINGS OTHER THAN JUST YEAR TO YEAR REPAIRS? SO HAVE THAT DISCUSSION WITH PUBLIC WORKS AND OR THE CITY MANAGER TO FIND OUT WHAT THE CITY DOES, AND THEN COME UP WITH RECOMMENDATIONS OF WHAT WE THINK MIGHT BE DONE DIFFERENTLY OR BETTER, OR JUST AGREE THAT 'S THE BEST THAT CAN BE DONE.
SO THEY DON'T. THAT WAS OUR UNDERSTANDING, IS THAT THE CITY DOES NOT HAVE ANY PLANS FOR A LONG TERM, AND WHEN I SAY LONG TERM, I'M TALKING ABOUT 20, 30 YEARS FROM NOW.
SO THE CITY DOES NOT HAVE THAT. I GUESS WE NEED TO WE NEED TO DEFINE THIS ITEM THEN, BECAUSE RIGHT NOW ALL WE HAVE IS A HEADING THAT SAYS BUILDING MAINTENANCE AND REPLACEMENT PLANNING. REPLACEMENT PLANNING ON 30 OR 40 YEAR BUILDINGS IS DIFFERENT THAN OKAY.
WE WILL AWARD ANY WAY YOU WOULD LIKE. I DON'T CARE ABOUT THE WORDING, I'M JUST LOOKING SUBSTANCE.
SO YEAH. SO WE JUST NEED TO LET STEPHANIE KNOW WHAT IS IT THAT WE WANT HER TO DO.
WELL, BECAUSE IT'S NOT IN THE BUDGET. WHERE IS IT? IN THE BUDGET? IT'S, YOU KNOW, IT WOULD HAVE TO BE UNDER A CAPITAL IMPROVEMENT PROGRAM.
[01:40:02]
SO IT'D HAVE TO BE IN THE CIP AND YOU'D HAVE TO GO LOOK AT THE CIP.SO NO, IT'S NOT GOING TO BE IN THE REGULAR BUDGET, BUT IT'S NOT, BUT WE KNOW THAT ALREADY BECAUSE WE JUST HAD A PRESENTATION FROM CIP BUT IF THAT'S WHAT YOU WOULD LIKE FOR CIP TO COME AND CONFIRM.
YEAH. WE JUST NEED TO LOOK AT THE CIPS. YEAH.
THE CIPS ARE SHORT TERM PROJECT. NO, NO THE CIP IS A VERY STRUCTURED SYSTEM FOR LONG TERM.
THERE ARE PROJECTS IN THERE, AS I RECALL, THAT STRETCH OUT TEN AND 15 YEARS.
THERE ARE UNFUNDED PROJECTS THAT ARE YEARS OLD THAT ARE.
YEAH, BUT THEY'RE NOT THEY'RE NOT REPLACING THE CITY HALL.
THAT'S WHERE YOU PUT IT. OKAY. SO YOU THINK CIP WOULD BE I GUESS THAT'S WHAT WE WANT TO SIP.
YOU CAN'T PUT IT IN THE REGULAR BUDGET. IT HAS TO GO IN THE CAPITAL IMPROVEMENT PROGRAM, AND THAT'S AMONG OTHER THINGS, BY CITY CHARTER. SO I HAVE A PROPOSAL, WHICH IS THAT I THINK I HAVE A DECENT IDEA OF WHAT THE COMMISSION IS LOOKING FOR.
WHY DON'T I GO BACK? I'LL TALK TO THE CITY MANAGER, I'LL TALK TO THE PUBLIC WORKS DIRECTOR, AND THEN WE WILL BRING THIS BACK UP AGAIN AT OUR JUNE MEETING OR JULY MEETING, BECAUSE I EXPECT JUNE WILL BE BUSY AND WE CAN AND WE CAN PROPOSE A DATE FOR THE COMMISSION TO LOOK AT IT.
ACTUALLY, BASED ON THE RESPONSE. YEAH. I THINK THE PLACE WE NEED TO START IN THAT MEETING IS A PRESENTATION ON WHAT ARE THE REQUIREMENTS FOR PROJECTS, AND WHAT ARE THE CITY'S REQUIREMENTS FOR PUTTING THINGS IN THE CIP.
WHAT ARE THE DOLLAR LIMITS AND WHAT ARE THE OTHER CRITERIA FOR PUTTING IT IN THE CIP? BECAUSE THAT'S WHAT TAKES IT OUT OF OUR CITY BUDGET, AND CIP OWES US A PRESENTATION IN AUGUST ANYWAY, SO SO WE CAN COMBINE IT IN AUGUST WITH THAT. I DON'T KNOW THAT THEY HAVE ANOTHER SCHEDULED PRESENTATION WITH US.
YEAH. SO DURING THE LAST PRESENTATION, WE COMMISSIONER JESTE ASKED THEM TO.
OH, I SEE WHAT YOU'RE REFERRING TO. YEAH, HE KNOWS IT'S RECORDED IN A PUBLIC MEETING IN AUGUST.
I WROTE IT DOWN. YEAH. EITHER WAY, I WILL. WE'LL HAVE A DISCUSSION WITH THE PUBLIC WORKS DIRECTOR, WITH THE CITY MANAGER, AND I THINK WE CAN HAVE A REPORT BACK OF A PLAN FOR YOU IN JUNE.
I DON'T WANT THEM TO KEEP COMING AND PRESENTING US.
YOU KNOW, THEY HAVE THEY'RE BUSY. THEY HAVE WORK TO DO.
SO I THINK IF WE JUST HAVE THEM ANSWER OUR QUESTIONS AND CLARIFY AND, YOU KNOW, AND WE GIVE THEM HEADS UP WHAT WE'RE LOOKING FOR IN AUGUST, THAT WOULD BE THAT WOULD WORK FOR ME. YEAH. MADE THAT VERY CLEAR FOR US FOR QUITE SOME TIME.
SO WE DON'T NEED TO REGURGITATE THE WHOLE THING.
WE JUST WANT TO SEE THE NUMBERS, AND WE HAVE, A SPREADSHEET THAT WE PREPARED.
IN FACT, THE GENTLEMAN ON THE PLANNING COMMISSION WHO MADE A PRESENTATION, HE SHOWED US THAT, BUT THAT WAS VERY LIMITED, AND HE DIDN'T GO INTO ALL THE DETAILS.
SO WE NEED TO SEE THAT FOR EVERY PROJECT THAT WE HAVE ON THE CIP.
YEAH, IT'S A CONTINUATION OF THE DISCUSSION, AND THAT'S NOT THIS ITEM RIGHT NOW.
SO LET'S FINISH THIS ONE. ANYTHING ELSE REGARDING THIS BEFORE WE CAN HAVE OUR PUBLIC COMMENT? YEAH. OKAY. I THINK WE'RE READY FOR PUBLIC COMMENT. JUST AHEAD.
THERE'S A DIFFERENCE BETWEEN MAINTENANCE EXPENSE AND CAPITAL EXPENSE.
THE REASON WE HAD TO GO FOR A BOND ISSUE FOR THE FIREHOUSES AND THE POLICE.
THING IS, BECAUSE MAINTENANCE WAS NOT DONE FOR SO LONG THAT IT TURNED INTO A CAPITAL PROJECT.
MAINTENANCE IS FOR SHORT TERM REPAIR, AND , YOU KNOW, RENOVATION MINOR RENOVATION OF FACILITIES. NOW, THOSE FIREHOUSES, AS YOU HEARD THE DESCRIPTIONS, THEY HADN'T BEEN MAINTAINED IN ANY WAY FOR LIKE 50 YEARS, BUT IF PEOPLE HAD BEEN REGULARLY ALLOCATING MAINTENANCE EXPENSE TO, YOU KNOW, REPLACE ROTTEN WOOD, FOR EXAMPLE, IN THE WINDOW FRAMES OR, YOU KNOW, UPGRADE, CHANGE THE SHOWERS PUT NEW PLUMBING IN THE SHOWERS, THAT'S MAINTENANCE. CAPITAL IS WHERE YOU HAVE TO GO THROUGH THE WHOLE BUILDING AND BASICALLY BUILD REBUILD IT FROM THE GROUND UP.
THAT IS CAPITAL, AND YOU'RE RIGHT ABOUT THAT.
[01:45:09]
FINANCING. IN OTHER WORDS, A BOND ISSUE OR WHAT HAVE YOU, BUT WHAT I WAS TRYING TO POINT OUT WAS EVERY YEAR YOU HAVE TO ACCOUNT FOR REPAIRS AND MAINTENANCE. THAT'S A RELATIVELY MINOR EXPENSE, AND IT'S AN EXPENSE.IT'S NOT A BOND THING. YOU DON'T ISSUE A BOND TO DO THAT.
YOU PUT IT IN YOUR BUDGET. SO THAT'S WHAT I WAS TRYING TO GET AT, AND SO GOOD POINT.
OKAY. THANK YOU FOR CLARIFICATION. WHAT YOU WERE TRYING TO CONVEY.
CAN WE RECEIVE AND FILE THIS, AND YOU DON'T WANT TO RECEIVE AND FILE IT BECAUSE THEN C ONTINUE TO YOU WANT TO PUT THIS IN JUNE. OR WE COULD DO A MOTION TO SAY, YOU WANT TO BRING THE ITEM BACK IN JUNE OR JULY, WHICHEVER.
SO I, I WOULD LOVE JULY. JULY IS GOOD. SO CAN WE GET A MOTION IN A SECOND? MOVE TO CONTINUE. ITEM. I ONE TO THE JULY MEETING.
SECOND. ALL IN FAVOR? AYE. ANY NAYS? NO NAYS.
MOTION CARRIED. SO THE NEXT ITEM WE WANT TO INCLUDE IS THE HOMELESSNESS FOR NEXT MEETING.
JUST A POINT, IF I CAN, ON THAT. WE HAD PUT TOGETHER A RECOMMENDATION TO THE CITY COUNCIL, AND WE HAD HELD ON TO THE RECOMMENDATION BECAUSE OF THE TIMING.
WE WANTED TO GET IT TO THE CITY COUNCIL AT THE APPROPRIATE TIME.
NOW WE'RE HEADING INTO THE BUDGET CYCLE. I THINK THIS WOULD PROBABLY BE THE APPROPRIATE TIME TO LET TO TELL THEM OR TO SEND THAT TO THEM TO INDICATE WHAT WE HAD DECIDED NEEDED TO BE DONE.
OTHERWISE, WE'RE GOING TO MISS THIS WHOLE BUDGET CYCLE, AND SO SO I'M GOING TO JUST I'M GOING TO RECAP WHAT WE'RE TALKING ABOUT TO YOU SO THAT YOU'RE AWARE OF WHAT WE ARE TALKING, AND THEN I'LL RECAP WHAT WE DECIDED LAST TIME.
SO HOW DID HOW DID THIS I THINK IT WAS COMMISSIONER JESTE MAYBE BROUGHT THIS HOMELESSNESS.
SO HE READ AN ARTICLE THAT SAID REDONDO BEACH NOW HAS ZERO.
WHAT WAS THE WORD USED? PEOPLE ON THE STREET? YES. YEAH. WHATEVER WORDING THEY'RE USING, AND WE WERE WE WANTED TO KNOW.
WELL, HOW MUCH DOES IT COST TO. THAT'S HOW THIS INITIATED.
HOW MUCH DOES IT COST TO TAKE A PERSON FROM THE STREET? AND THAT BROUGHT US TO A SITUATION WHERE. WE ASKED STAFF TO PROVIDE US THE COST AND STAFF COULD NOT, AND THAT BECAME CONCERNING, AND THEN THERE WAS ANOTHER COMMISSION THAT WAS ALSO LOOKING INTO THAT.
THEY INVITED ME TO THEIR MEETING AND THEY WERE ABLE TO DO THE CALCULATION, BUT THERE WAS ANOTHER PERSON THAT WAS CONCERNED THAT THEY ARE UNABLE TO GET THIS, THE NUMBERS, HOW MUCH IT COSTS, WHERE THE MONEY WENT FROM THAT.
WE DON'T HAVE THAT NUMBER. SO BECAUSE WE ARE A FINANCE COMMISSION O UR JOB IS NUMBERS.
SO I CREATED A TEMPLATE AND I THINK YOU MIGHT HAVE SEEN IT BECAUSE I EMAILED IT TO YOU AND JESTE.
A COUPLE DAYS AGO ONLY, AND SO WE HAVE A , SO I CREATED A TEMPLATE.
NOW THAT STAFF CAN COMPLETE THE NUMBERS WHERE YOU KNOW HOW MUCH GRANTS WERE RECEIVED AND WHO WAS PAID. SO T HAT'S ALL THAT'S REALLY WHAT WE'RE TRYING TO ACHIEVE.
I THINK I MIGHT EMBELLISH IT FOR JUST A LITTLE BIT.
I THINK OH. THE QUESTION REALLY THAT WE WERE ADDRESSING WAS IT DIDN'T SEEM LIKE WE HAD THE ARCHITECTURE TO TRACK BUDGET REPORT AND MANAGE THE HOMELESS. THIS WHOLE CONCEPT OF WHAT ARE WE DOING ABOUT THE HOMELESS FOLKS? SO YOU'VE GOT EVERYTHING FROM TIME SPENT BY CITY WORKS TO FIRE DEPARTMENT BEING CALLED IN TO PUT OUT, YOU KNOW, JUST A WHOLE RANGE OF THINGS THAT ARE SORT OF NEW TO THIS WHOLE CONCEPT OF HOMELESSNESS, AND WHAT ARE WE DOING ABOUT IT? SO WE WANTED TO ADVISE THE CITY COUNCIL THAT WE FELT THAT IT WAS AN IMPORTANT ISSUE SO THAT THEY COULD MANAGE IT PROPERLY. WE COULD TRACK THE COSTS ON IT TO CONSIDER PUTTING IN PLACE THE ARCHITECTURE IN,
[01:50:05]
SAY, IN POLICE AND IN ALL OF THE DEPARTMENTS SO THAT THEY COULD BEGIN TO START TRACKING THE COSTS THAT THEY'RE SPENDING AND FINANCE TO BE ABLE TO LOOK AT THE GRANTS AND THINGS LIKE THAT AND SORT OF CONSOLIDATE THIS, AND IT'S A PRETTY HETEROGENEOUS KIND OF MIX OF THINGS, BUT IT NEEDS TO BE WELL THOUGHT THROUGH, AND THEN EXECUTED.WE WROTE A LETTER TO THE CITY COUNCIL AND 2 OR 3 OF US, PERHAPS WE SHOULD SHARE IT WITH, WITH THE BALANCE OF THE, AND EVERYONE CONTRIBUTED TO IT, BUT IT'S STILL IN OUR POSSESSION.
WE HAVEN'T REALLY PASSED IT ON TO THE CITY COUNCIL.
SO THE QUESTION IS, [INAUDIBLE] SHARE IT WITH EVERYBODY UNLESS IT GOES ON THE AGENDA.
SO WE DID LAST TIME WE DID SHARE. I READ THE LETTER, WE TALKED ABOUT IT, WE DISCUSSED IT, AND THEN AS A COMMITTEE WE DECIDED WE'RE NOT GOING TO SEND IT TO COUNCIL.
WE'RE GOING TO WORK WITH THE FINANCE DEPARTMENT AND THEY'RE GOING TO GET US, GIVE US AS MUCH NUMBERS AS WE CAN, AND WE DECIDED AS A COMMITTEE LAST TIME IT'S ALL RECORDED.
IT'S ALL, YOU KNOW, AND WE SAID, WE'RE NOT GOING TO SEND THAT LETTER TO MY POINT IS WE CAN'T DISCUSS IT NOW BECAUSE IT'S NOT ON OUR AGENDA. THE ADDITIONAL ITEMS THAT YOU'RE ASKING FOR AREN'T ON OUR AGENDA.
IF YOU WANT TO PUT IT ON THE AGENDA, THEN THIS IS WHERE WE SAY WE'RE PUTTING THESE THINGS ON.
THE AGENDA FOR DISCUSSION AT THE NEXT MEETING HAS A POINT IN TERMS OF ACTION, BUT I THINK WHAT WE MEANT TO DO WAS TO GIVE A SUMMARY OF WHAT WE'RE TALKING ABOUT TO COMMISSIONER RAMCHARAN.
YES, YOU'VE GOT IT. SO THAT WAS THE INTENTION.
SO HE IS RIGHT. COMMISSIONER SAMPLES IS RIGHT.
WE CANNOT MAKE ANY DECISIONS RIGHT NOW, AND WE CANNOT DISCUSS ANY FURTHER OTHER THAN WE WERE BEING.
SO IF YOU WANT TO PUT IT ON THE AGENDA, PUT IT ON THE AGENDA.
SO WE'RE GOING TO PUT IT ON THE AGENDA FOR NEXT TIME.
OKAY. YEAH. WELL AND WE'LL DISCUSS ALL OF THIS AGAIN NEXT TIME.
I JUST WANT TO MAKE CLEAR WHAT TOPIC ARE WE JUST CALLING IT? HOMELESSNESS TRACKING. IS THAT THE TOPIC WHERE HOMELESSNESS COST OR EXPENDITURES? WHAT DID WE. I DON'T KNOW WHAT IT WAS IN PREVIOUS COMMISSIONER JESTE, DO YOU REMEMBER WHAT WE NAMED IT? WHAT ARE WE GETTING THROUGH? THE STATE TAXES AND OTHER ACCOUNTABILITY.
H OMELESSNESS ACCOUNTABILITY? YES. HOMELESSNESS ACCOUNTABILITY.
SO LET'S SAY HOMELESSNESS FUNDING / ACCOUNTABILITY, SO EVERYBODY'S HAPPY.
PART WAS EASY TO IDENTIFY. THE EXPENSE PART WAS THE HARD PART TO IDENTIFY.
YES. BECAUSE YES, THE GRANTS SECTION STEPHANIE ALREADY PROVIDED.
SO WE'RE WE'RE KIND OF DOING BABY STEPS. OKAY.
LET'S LOOK TO SEE WHAT WE RECEIVED. THE NEXT STEP WAS GOING TO BE OKAY.
RIGHT. THAT WAS GOING TO BE ALSO ON THE YOU WANT IT TO BE ON THE NEXT AGENDA.
OR CAN WE WAIT TO BE ON THE AUGUST AGENDA? WE CAN PUT IT ON THE NEXT MONTH.
YOU WANT TO BE ON IT? SORRY. MAYBE WE NEED TO GO BACK TO THE MINUTES FROM THE JOINT BUDGET AND FINANCE COMMISSION MEETING, WITH THE PUBLIC WORKS AND SUSTAINABILITY, BECAUSE I CAN'T REMEMBER WHAT YOU AGREED TO.
YEAH. SO I DON'T KNOW. I REMEMBER, I CAN'T, I REMEMBER LIKE IT WAS YESTERDAY.
SO WHAT WE AGREED TO WITH. I FORGET HIS NAME.
JESTE. YES. SO HE AGREED THAT HE WAS GOING TO PROVIDE US WHAT WE ASKED FOR IN AUGUST.
IN AUGUST. OKAY. AUGUST. OKAY. SO IF WE CAN PLEASE HAVE THAT IN AUGUST.
BECAUSE OTHERWISE WE'RE GOING TO BE DOING THIS NEXT MONTH.
THAT ITEM I ONE, ISN'T THAT ONE IN THE SAME? NO, NO T HAT'S SOMETHING COMPLETELY DIFFERENT.
WERE YOU HERE LAST TIME? NOT FOR THIS SPECIAL MEETING.
OKAY. NOT FOR THE SPECIAL MEETING. OKAY. NO. IT'S DIFFERENT, AND WE'LL DISCUSS IN AUGUST.
OKAY. YEAH, IT'S SOMETHING DIFFERENT. OKAY, AND I KNOW YOU DON'T WANT ME TO TALK TOO MUCH ABOUT IT, BECAUSE YOU'RE THE ONE WHO'S GOING TO STOP ME. SO I'M GOING TO SAY NO. I JUST I'M CONFUSED BECAUSE WE JUST GOT THROUGH HAVING A DISCUSSION ABOUT ITEM I ONE.
IT'S BEING TIED UP IN THE CAPITAL IMPROVEMENT PROGRAM.
OKAY, AND WE'RE GOING TO USE ASK HIM QUESTIONS ABOUT THE LONG TERM PLANNING.
OKAY. YEAH. THAT WAY HE DOESN'T HAVE TO COME HERE TWICE.
[01:55:01]
OKAY. BECAUSE WE WANT TO BE A LITTLE BIT RESPECTFUL OF THEIR TIME.ANYTHING ELSE? CAN WE ADJOURN THE MEETING BEFORE WE ADJOURN? SORRY, I'M JUST GOING TO DOUBLE CHECK. WE HAVE NO ONE ON ZOOM.
THERE ARE NO E-COMMENTS AND NO FROM PUBLIC. NO ONE FROM PUBLIC.
MOVE TO ADJOURN. ANY SECOND. ALL IN FAVOR? AYE.
ONE MORE, CLARITY. WHO S ECONDED? SHERBIN? OKAY.
THANK YOU. AT 8:25, WE'RE ADJOURNED. THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.