>>> GOOD MORNING, EVERYONE.
THE SELECT BUDGET COMMITTEE
MEETING WILL COME TO ORDER.
IT'S OCTOBER 13, 2021.
I'M TERESA MOSQUEDA, SHARE OF
THE COMMITTEE.
ROLE CALL.
>> JUAREZ.
>> HERE.
>> LEWIS.
>> PRESENT.
>> MORALES.
>> HERE.
>> PEDERSON.
>> HERE.
>> SAWANT.
>> PRESENT.
>> STRAUSS.
>> PRESENT.
GOOD MORNING.
>> GONZALEZ.
>> HERE.
>> HERBOLD.
>> HERE.
>> PRESENT.
>> NINE PRESENT.
THANK YOU, MADAME CLERK.
COLLEAGUES, THANK YOU FOR
JOINING US.
IT'S BEEN LESS THAN 12 HOURS
SINCE I SAW YOU.
THANK YOU FOR YOUR TIME LAST
NIGHT FOR THE PUBLIC HEARING.
WE HAD A 3 1/2 HOURS OF PUBLIC
TESTIMONY LEADING INTO TODAY'S
CONVERSATION.
TODAY IS ONE OF DAY THREE FOR
ISSUE IDENTIFICATION FROM
CENTRAL STAFF.
TODAY WE BEGIN WITH AN
INTRODUCTION OF ISSUES,
IDENTIFICATION, IDENTIFIED BY
CENTRAL STAFF, AND WITH AN
OVERVIEW OF THE 2022 PROPOSED
BUDGET.
WE HAVE THE OVERVIEW OF THE
GENERAL FUND ANALYSIS,
INCLUDING THE ANALYSIS OF THE
REENUE BUILT IN TO THE MAYOR'S
PROPOSED BUDGET AND HOW THE
MAYOR AND THEIR TEAM HAVE
CHOSEN TO UTILIZE THE VARIOUS
REVENUE STREAMS.
A BREAK AT 1:00 P.M.
RECESS UNTIL 2:00.
WE WILL CONCLUDES WITH THE
DEPARTMENT OF EDUCATION AND
EARLY LEARNING AND THE OFFICE
OF ECONOMIC DEVELOPMENT.
JUST A REMINDER ABOUT THE
DEPARTMENT PRESENTATIONS.
WE ARE GOING TO ASK THE
DEPARTMENTS TO GET THROUGH THE
INITIAL OR EXCUSE ME, CENTRAL
STAFF TO GET THROUGH THE
PRESENTATION OF THE OVERVIEW
BEFORE WE GET INTO THE ISSUE
IDENTIFICATION.
WE WILL HAVE THE COUNCILMEMBER
WHO HAS PER VIEW OVER THAT
DEPARTMENT TO SAY QUESTIONS OR
COMMENTS AT THAT POINT.
WE WILL OPEN UP QUESTIONS FOR
THE OVERALL PRESENTATION BEFORE
ISSUE IDENTIFICATION, AND THEN
ALLOW FOLKS TO GO THROUGH THAT
AS WE GO THROUGH THAT
COMPONENT.
SHOULD BE FAIRLY STREAMLINED,
AND LOOK FORWARD TO YOUR
QUESTIONS.
IT'S A CHANCE FOR US TO AIR THE
QUESTIONS, THINK ABOUT IDEAS
OUTLOUD, HAVE A CHANCE TO HEAR
FROM COLLEAGUES, AND GET SOME
IDEAS OUT THERE FOR THE
COMMUNITY AS WE RESPOND TO SOME
OF THE ITEMS THAT CENTRAL STAFF
WILL BE IDENTIFYING FOR US.
SO IF THERE'S NO OBJECTION, THE
AGENDA TODAY IS ADOPTED.
HEARING NO OBJECTIONS, TODAY'S
AGENDA IS ADOPTED.
MOVING ON TO PUBLIC COMMITTEE.
WE HAVE COMMITTED TO HAVING
PUBLIC COMMENT UNTIL 10:00 A.M.
WE ONLY HAVE A HANDFUL OF FOLKS
SIGNED UP TO TESTIFY.
SIX ARE HERE TO TESTIFY.
EACH PERSON WILL BE GIVEN TWO
MINUTES TO SPEAK.
THIS IS YOUR CHANCE TO SPEAK TO
ITEMS ON THE AGENDA, AND YOU
CAN SPEAK ON ANY ITEM RELATED
TO THE 2022 BUDGET IN OUR
DELIBERATION.
THE CHIME AT THE END OF THE TWO-
MINUTE ALLOTMENT IS THE TEN-
SECOND NOTIFICATION TO WRAP UP
YOUR COMMENTS SO YOU DON'T HAVE
YOUR MICROPHONE SHUT OFF BEFORE
YOU HAVE CONCLUDED YOUR
THOUGHTS.
AFTER YOU HAVE CONCLUDED YOUR
COMMENTS FOR TODAY, PLEASE DO
HANG UP, AND COME BACK TO US,
AND LISTEN IN ON THE LISTEN
OPTION ON TODAY'S AGENDA OR AT
SEATTLE CHANNEL.
THANK YOU AGAIN, SEATTLE
CHANNEL, FOR STREAMING US LIVE
HERE TODAY.
I'M GOING TO CALL THE FIRST TWO
PEOPLE ON THE LIST IN THE ORDER
IN WHICH THEY HAVE SIGNED UP.
THANK YOU, COLLEAGUES FOR YOUR
OPPORTUNITY TO HEAR, AGAIN,
FROM THE COMMUNITY TODAY.
WHEN YOU HEAR THE CHIME THAT
YOU HAVE BEEN UNMUTED, THAT'S
YOUR INDICATION, HIT STAR SIX.
STAR SIX UNMUTES YOUR LINE.
DOUBLE CHECK YOU ARE NOT MUTED
ON YOUR OWN PHONE.
GOOD MORNING.
I SEE YOU UP ALREADY.
TREVONA IS UP FIRST, FOLLOWED
BY DAVID HEINZ.
GOOD MORNING.
>> I'M TREVONA, A RESIDENT OF
DISTRICT TWO.
I'M CALLING IN TO SUPPORT THE
SOLIDARITY BUDGET
RECOMMENDATIONS FOR CHILD CARE.
I HAVE A FRIEND WHO MAKES
$50,000 A YEAR, AND SHE HAS WON
SON.
CHILD CARE IS $3,000 A YEAR.
THAT'S $36,000 A YEAR FOR CHILD
CARE, ONLY MAKING $50,000.
YOU CAN TELL FOLKS THERE'S
PROGRAMS TO HELP WITH THE COST.
THAT'S NOT TRUE.
THE PROGRAMS OUT THERE HAVE AN
EXTREMELY LONG WAIT LIST, AND
IT'S ALMOST IMPOSSIBLE TO MEET
THE QUALIFICATIONS, AND THERE'S
AN ISSUE THAT IMPACTS THE
FAMILIES OF COLOR, AND IT
REALLY IMPACTS THE BLACK FOLKS.
THE PANDEMIC MADE IT CLEARER
THAN EVER THE UNIVERSAL NEED
FOR CHILDCARE, THE SYSTEM OF
SUPPORT THAT ENABLES PARENTS
AND CARE GIVERS TO WORK AND
CARE FOR THEMSELVES AND THEIR
COMMUNITIES, AND THE SOLIDARITY
BUDGET IS RECOMMENDED 153.7
MILLION INVESTMENT IN CHILDCARE
FOR ALL.
THIS WILL ACTUALLY INVEST IN
THE FUTURE OF OUR YOUNG PEOPLE
AND THE WELL BEING OF FAMILIES
AND CHILDREN.
THE MAYOR'S PROPOSED 2022
BUDGET IS ABOUT 2.5 MILLION
THAN THE 2021 BUDGET.
ACTUALLY, THAT SIMPLY IS NOT
TRUE BECAUSE SPD'S BUDGET HAS
NOT DECREASED IN PROPORTION TO
THEIR DECREASED
RESPONSIBILITIES AND THE NUMBER
IN EACH DEPARTMENT.
WHEN THINGS ARE TAKEN INTO
ACCOUNT, SPD'S BUDGET SHOULD AT
LEAST BE $47.8 MILLION LOWER.
THE CITY COUNCIL, $47 MILLION
ADJUSTMENT ALONE COULD CREATE
2,000 UNITS OF PERMANENT
SUPPORTIVE HOUSING FOR UNHOUSED
PEOPLE.
I'M GOING TO END BY SAYING I
SUPPORT THE SOLIDARITY BUDGET
BECAUSE IT SUPPORTS OUR
CHILDREN AND FAMILIES.
THANK YOU.
>> THANK YOU FOR YOUR
TESTIMONY.
GOOD MORNING DAVID.
DAVID WILL BE FOLLOWED BY
LATONYA.
>> HI, GOOD MORNING.
THANK YOU.
I'M AFRAID THERE'S AN
ADDITIONAL ISSUE I NEED TO
BRING UP AFTER WHAT HAPPENED
THIS MORNING IN MY
NEIGHBORHOOD, BUT FIRST, IS THE
CITY COUNCIL INVESTING IN
CREATING LAWS TO INCENTIVIZE
BANKS TO CREATE 21st CENTURY
HOUSING AND COMMERCIAL
BUILDINGS FOR REAL ECONOMIC
DEVELOPMENT?
OR IS THIS BUDGET EXCLUSIVELY
TO BUY OFF BLACK AND BROWN
COMMUNITY ORGANIZERS AND
ACTIVISTS INTIMIDATING THE CITY
COUNCIL IN A TRADE FOR ELECTION
SUPPORT.
WHILE THE DEMOCRATS GET IN THE
WAY OF REAL PROGRESS WITH RACE
AND --
>> DAVID, PLEASE KEEP YOUR
COMMENTS DIRECTED TO POLICY FOR
THE 2022 BUDGET.
PLEASE KEEP YOUR COMMENTS
DIRECTED.
>> I'M CONCERNED THERE'S AN
IMMORAL FINANCIAL SYSTEM YOU'RE
ATTEMPTING TO ALLEVIATE, AND
YOU'RE NOT EXACTLY TARGETING IT
PROPER TO ALLEVIATE IT
THROUGHOUT THE COMMONWEALTH,
AND OKAY, I WILL GET TO THE
POINT ABOUT THE OTHER ASPECT.
THIS MORNING AT 7:45 A.M.,
ROUGHLY, THERE WAS ANOTHER
SHOOTING, AND I DON'T KNOW IF
THE GUY WAS KILLED, BUT YOU
KNOW, EVENTUALLY THE COPS
SHOWED UP, BUT ALL NIGHT, EVERY
MONTH SINCE I HAVE LIVED HERE,
THERE'S BEEN AN OPEN DRUG
MARKET WHERE CRACK, METH, AND
HEROIN HAVE TAKEN OVER THE PARK
BETWEEN FIRST AVENUE AND CHERRY
AND YESSLER, AND IN FRONT OF MY
BUILDING, AND THEY ARE
CONSTANTLY SMOKING THERE.
I ASK THEM TO LEAVE, AND THEY
ATTACK ME REGULARLY.
I CALL THE COPS, DO THEY HAVE
WEAPONS?
NO WEAPONS, THEY DON'T SHOW UP.
PART OF IT IS THE SABOTAGING OF
THE PUBLIC SAFETY FROM THE
PERSPECTIVE OF THE COPS WHO ARE
REFUSING TO COME DOWN AND
ARREST THEM BECAUSE THEY SAY
THE CITY COUNCIL PROHIBITS
THEM.
IT'S CONCERNING BECAUSE WE HAVE
AN -- IN THE DOWNTOWN SEATTLE
ASSOCIATION IS NOT CLEANING UP
AROUND THE BUILDING, BUT THEIR
EMPLOYEES ARE SLEEPING IN MY
BUILDING, AND THEY ARE NOT
DOING THEIR JOB.
>> DAVID, THANK YOU FOR CALLING
IN TODAY.
WE WILL FOLLOW UP WITH YOU AS
WELL ABOUT SOME OF THE HEALTH
AND SAFETY CONCERNS.
THE NEXT PERSON IS LATONYA AND
THEN SEAN GLAZE.
GOOD MORNING, LATONYA.
>> GOOD MORNING.
MY NAME IS LATONYA SEVERE.
I'M A RENTER IN D2.
I WANT TO START BY SAYING THE
SOLIDARITY BUDGET SHOULD BE
YOUR STARTING POINT FOR THE
BUDGET NEGOTIATIONS THIS YEAR.
COUNCIL NEEDS TO ADJUST THE
MAYOR'S PROPOSED BUDGET TO
FULLY MEET THE COMMUNITY-
GENERATED DEMANDS OF THE
SOLIDARITY BUDGET.
I ALSO WANT TO FOCUS ON
CHILDCARE TODAY.
THE COVID-19 PANDEMIC MADE IT
MORE CLEAR THAN EVER THE
UNIVERSITY NEED FOR CHILDCARE.
THE SUPPORT THAT ALLOWS PARENTS
AND CARE GIVERS TO WORK AND
CARE FOR THEMSELVES IN THE
COMMUNITIES.
THE HIGH COST OF CHILD CARE AND
LACK OF AVAILABLE SLOTS
RENDERING CHILD CARE
INACCESSIBLE FOR MANY WITH A
DISPROPORTIONATE IMPACT ON
FAMILIES OF COLORS.
FAMILY AND FRIENDS ARE THE
PRIMARY SOURCE OF CHILDCARE WHO
WORK NONTRADITIONAL HOURS OR
HAVE LOW-WAGE JOBS WITH
UNPREDICTABLE SCHEDULES.
INVESTMENT IN TRADITIONAL AND
NONTRADITIONAL STRUCTURE.
WE ARE INVESTING IN THE FUTURE
OF THE YOUNG PEOPLE AND IN THE
WELL BEING OF FAMILIES WITH
CHILDREN.
WHILE I WAS HAPPY TO SEE $3
MILLION IN THE BUDGET FOR CHILD
CARE WORKERS, IT'S A ONE-TIME
PAYMENT, AND FUNDS SHOULD BE
FOUND TO MAKE SURE ALL CHILD
CARE WORKERS ARE MAKING A
PREVAILING WAGE.
AS YOU CONTINUE TO MOVE FUNDS
OUT OF THE CRIMINAL LEGAL
SYSTEM VIA SPD, THE CITY
MUNICIPAL COURT, CHILD CARE IS
THE PLACE WHERE ONGOING FUNDING
IS MUCH NEEDED.
ADDITIONALLY MORE FUNDS ARE
NEEDED TO EXPAND CULTURALLY
SPECIFIC PROVIDERS.
THE SOLIDARITY BUDGET IS
FOCUSED ON CREATING INCENTIVES,
TRAINING MORE COMMUNITY
CONNECTORS AND RESOURCE
ADVOCATORS, AND HIGHER MORE
PROVIDERS.
FOR $14.5 MILLION, WE CAN
PROVIDE MORE CULTURALLY
RESPONSIVE SPECIFIC CHILD CARE
OPTIONS FOR THE COMMUNITIES.
>> THANK YOU VERY MUCH.
SEAN, IT LOOKS LIKE YOU ARE NOT
PRESENT.
SEAN GLAZE.
WE WANT TO ACKNOWLEDGE YOU ARE
ON OUR LIST IF YOU DO DIAL IN
BEFORE THE END OF PUBLIC
COMMENT.
WE WILL COME BACK TO YOU.
THE LAST PERSON ON THE LIST IS
SEBRINA.
>> GOOD MORNING, SEBRINA.
>> GOOD MORNING.
MY NAME IS SEBRINA VILLANOVA.
I'M HERE FOR THE EVERY DAY
PEOPLE WHO COME INTO SEATTLE
FOR WORK OR LEISURE.
THE PROPERTY MANAGER OF SEVERAL
BUILDINGS IN DOWNTOWN SEATTLE,
AND I KNOW WHAT MY TENANTS AND
STAFF ENDURE ON A DAILY BASIS.
VIOLENCE IS AT AN ALL-TIME
HIGH.
MY COMPANY EMPLOYS PRIVATE
SECURITY FOR OUR BUILDINGS.
MANY ARE GOING TO SCHOOL, JUST
ENTERING THE WORK FORCE OR HAVE
RECENTLY MOVED TO THE U.S. THEY
ARE VERBALLY HARASSED,
PHYSICALLY ASSAULTED, AND
THREATENED ON A DAILY BASIS.
PICTURE GOING TO WORK EVERY DAY
AND HAVING NEEDLES THROWN AT
YOU, WEAPONS DISPLAYED TO
INTIMIDATE YOU, AND WAIT TIMES
FOR 911 HAVE BEEN UP TO 45
MINUTES FOR A VIOLENT CRIME.
RECENTLY WAS AN INCIDENT AT A
MUSIC VENUE WHERE AN ARTIST
PERFORMED AND LEFT TO GO TO HIS
CAR AT NIGHT AND WAS HIT OVER
THE HEAD, KNOCKED TO THE GROUND
BECAUSE HE DIDN'T HAVE A
CIGARETTE TO GIVE THE PERSON.
HE SAID HE WILL NEVER RETURN TO
SEATTLE.
INCIDENTS LIKE THIS ARE
HAPPENING CONSTANTLY, AND
PEOPLE ARE NOT SAFE IN OUR
CITY.
I WOULD LIKE TO ADVOCATE FOR
ANY POLICY THAT WILL REDUCE THE
NUMBER OF VICTIMS IN SEATTLE,
AND I URGE THE COUNCIL TO
PLEASE PRIORITIZE THE BUDGET
DOLLARS TO QUICKLY AND
EFFECTIVELY ADDRESS OUR PUBLIC
SAFETY CRISIS.
THANK YOU.
>> THANK YOU FOR DIALING IN
TODAY, SEBRINA.
WE WILL FOLLOW UP WITH YOU ON
THOSE INCIDENTS AS WELL.
SEAN, IT SAYS YOU'RE STILL NOT
PRESENT, SO WE WILL GO AHEAD
AND MOVE TO OTHER ITEMS OF
BUSINESS.
THANK YOU FOR DIALING IN THIS
MORNING.
THAT DOES CONCLUDE THE PUBLIC
COMMENT FOR TODAY.
THANK YOU TO EVERYONE WHO
CALLED IN.
IF YOU WOULD LIKE TO PROVIDE
PUBLIC COMMENT THIS WEEK, YOU
CAN SIGN UP STARTING AT 7:30
A.M.
ON THURSDAY AND ON
FRIDAY THIS WEEK AS WELL.
>>> LET'S MOVE ON TO THE FIRST
ITEM ON OUR LIST HERE.
MADAME CLERK, CAN YOU PLEASE
READ IT INTO THE RECORD.
>> AGENDA ITEM NUMBER ONE,
INTRODUCTION AND ISSUE
IDENTIFICATION OVERVIEW.
>> WE HAVE A ALY PENNUCCI AND
ESTHER HANDY WHO IS OUR LEAD
CENTRAL STAFFERS ON THE BUDGET.
THE PURPOSE IS FOR ISSUE
IDENTIFICATION FROM CENTRAL
STAFF SO WE CAN HAVE A ROBUST
DISCUSSION ABOUT THE ISSUES
THAT CENTRAL STAFF HAVE
IDENTIFIED, AND WE CAN REVIEW,
DISCUSS, AND ASK QUESTIONS
ABOUT THE PROPOSED BUDGET, AND
THIS IS AN OPPORTUNITY TO
PROVIDE DIRECTION TO STAFF ON
MAYBE SOME SPECIFIC ISSUES OR
AMENDMENTS YOU WOULD LIKE TO
CONSIDER.
YOU HAVE UNTIL NOON ON OCTOBER
18th TO CONSIDER THOSE
AMENDMENTS, AND I LOOK FORWARD
TO HEARING HOW THE QUESTIONS
TODAY AND THE DISCUSSION TODAY
DOVE TAILS TO SOME OF THE
POSSIBLE ITEMS YOU MAY BE
INTERESTED IN.
WE WILL ASK CENTRAL STAFF TO
WALK THROUGH THE ISSUE
IDENTIFICATION PAPERS, AND WE
WILL HAVE A CHANCE TO ASK
QUESTIONS AND TO CONSIDER
QUESTIONS FROM COUNCILMEMBERS
AFTER THEY GO THROUGH THE FIRST
PORTION OF THEIR OVERVIEW.
THEN WE WILL GO INTO ISSUE
IDENTIFICATION, AND AS FOLKS
KNOW, AND FOR THE VIEWING
PUBLIC, I'M SURE YOU HAVE SEEN
AS WELL.
CENTRAL STAFF IDENTIFIES THE
ISSUES AND PROVIDES A HANDFUL
OF OPTIONS FOR COUNCIL'S
CONSIDERATION.
WE ARE NOT VOTING ON ANY OF THE
OPTIONS.
NO DECISIONS HAVE TO BE MADE
TODAY.
IT'S WAY TO TRANSPARENTLY
OUTLINE THE POSSIBLE OPTIONS TO
ADDRESS THE ISSUES THAT CENTRAL
STAFF HAS IDENTIFIED.
I WANT TO THANK CENTRAL STAFF
FOR ALL OF THE WORK THEY HAVE
DONE, AND I DO HOPE FOLKS HAVE
THE CHANCE TO READ THE MEMOS
THAT HAVE BEEN PROVIDED.
I WANT TO THANK TOM MIKESELL
WHO IS NOT WITH US ON SCREEN,
BUT WILL JUMP ON TO PROVIDE AN
OVERVIEW, ESPECIALLY THE
REVENUE PORTION WE ARE GETTING
INTO THIS MORNING.
IT HAS BEEN A HEROIC AMOUNT OF
WORK TO DIVE INTO THE BUDGET
WITHIN THE LAST WEEK, AND THEN
TO PROVIDE US A CLEAR ANALYSIS
AND EXPLANATION OF THE PROPOSED
BUDGET IN PROJECT OF US.
IF WE WERE IN PERSON, WE WOULD
GIVE YOU A PREEMPTIVE ROUND OF
APPLAUSE FOR ALL THE WORK YOU
HAVE DONE AND WILL CONTINUE TO
DO FOR THE NEXT FOUR TO SIX
WEEKS.
DIRECTOR HANDY, OVER TO YOU
FIRST FOR OPENING COMMENTS.
>> THANK YOU SO MUCH, CHAIR
MOSQUEDA, MEMBERS OF THE
COUNCIL, GOOD MORNING.
ESTHER HANDY.
WELCOME TO ISSUE
IDENTIFICATION.
AS THE CHAIR MENTIONED, FOR THE
NEXT THREE DAYS OUR CENTRAL
STAFF TEAM WILL PRESENT THEIR
ANALYSIS OF THE BUDGET,
INCLUDING THE ISSUES IDENTIFIED
AND POSSIBLE ACTIONS FOR YOU,
BY THE COUNCIL.
I WILL NOTE THAT OUR ISSUE I.D.
WORK REFLECTS THE ANALYSTS'
BEST UNDERSTANDING AFTER TWO
WEEKS OF REVIEW OF THE BUDGET.
OUR TEAM IS MIGHTY, AND ALSO
THE $7 BILLION BUDGET IS A
LARGE AND COMPLEX DOCUMENT.
DISCUSSIONS THIS WEEK WILL
FOCUS ON THE ISSUES MOST
IMPORTANT TO THE COUNCIL, AND
WE WILL GO AS DEEP AS WE HAVE
BEEN ABLE TO DO IN TWO SHORT
WEEKS.
I WILL ALSO REMIND YOU AS WE
GET GOING, YOUR DISCUSSIONS, AS
I DID LAST WEEK, IT'S FOCUSED
ON THE 2022 PROPOSED BUDGET.
NONE OF THE PROPOSALS IS MONEY
ALLOCATED OR SPENT ON PROGRAMS.
IT'S THE EXECUTIVE'S JOB TO
MAKE THE PROPOSED REVIEW, AND
YOUR ACTIONS ALLOCATE THE
RESOURCES TO PROGRAMS NEXT
YEAR.
THIS MORNING WE WILL START WITH
A BRIEF OVERVIEW AND THEN LOOK
THE GENERAL FUND REVENUES.
IT'S THE $1.6 BILLION HEART OF
THE CITY BUDGET.
AS A BASELINE FOR THE
DISCUSSION, WE KNOW THAT EVEN
PRIOR TO COVID, THE COVID-19
PANDEMIC, THE COST OF ONGOING
GENERAL FUND SERVICES HAVE BEEN
GROWING AND OUTPACING REVENUE
GROWTH.
WITHOUT THE ACTION BY THIS
COUNCIL IN 2020 TO PASS THE
JUMPSTART FUNDING BILL AND
PROVIDE NEW SOURCES OF
PROGRESSIVE REVENUE, YOU WOULD
BE LOOKING A THE A CUTS BUDGET,
REDUCING SERVICES IN THE
COMMUNITIES.
IN THIS 2022 PROPOSED BUDGET
DOCUMENT, THE MAYOR HAS
PROPOSED TO APPLY THE NEW
REVENUES, FIRST PRESERVE THE
SET OF EXISTING PROGRAMS, TO
STAVE OFF THE CUTS AND
UNDERWRITE A SIGNIFICANT
INCREASE IN NEW PROGRAMS.
SOME OF THOSE PROGRAMS ARE
SHARED PRIORITIES WITH THE
COUNCIL, AND WHILE YOU ALL
SPENT THE NEXT COUPLE OF WEEKS
DEBATING THE MERITS AND SCALE
OF THE PROPOSED INVESTMENTS, I
WANT TO UNDERSCORE WE KNOW IT'S
POSSIBLE TO FUND EVERYTHING IN
THE PROPOSED BUDGET THIS YEAR,
AND WE ALSO KNOW THERE IS NOT
SUSTAINABLE FUNDING SOURCES FOR
ALL THE PRIORITIES IN THE
FUTURE YEARS.
SO AS YOU HEAD INTO DISCUSSION,
THERE'S A COUPLE OF POLICY
QUESTIONS I WOULD LIKE TO TEE
UP FOR YOU THAT YOU WILL BE
ASKED IN YOUR DELIBERATION OF
THE BUDGET.
THE FIRST, WE WILL BEGIN
TACKLING TODAY.
DO YOU AGREE WITH THE WAY THE
JUMPSTART FUND PRIORITIES HAVE
BEEN MET?
DO YOU UNDERSTAND AND AGREE
WITH THE ROLE JUMPSTART IS
PLAYING IN THE GENERAL FUND?
DO YOU AGREE WITH THE WAY THE
EXECUTIVE HAS PROPOSED TO MEET
JUMP START FUND PRIORITIES
ACROSS THE VARIETY OF FUNDING
SOURCES?
THE SECOND POLICY QUESTION, HOW
SUSTAINABLE SHOULD THE 2022
BUDGET BE?
YOU WILL TACKLE THIS IN CHOICES
ABOUT REPLENISHING RESERVES,
HOW MUCH NEW ONGOING FUND
SPENDING TO AUTHORIZE AND HOW
TO SUPPORT THE INCREASING COST
OF PROGRAMS.
YOUR DECISIONS WILL BE INFORMED
BY YOUR TAKE ON THE CONTEXT OF
THE MOMENT O 2022.
WHAT ARE THE COMMUNITY
CONDITIONS A IN THE POINT IN
THE PANDEMIC AND THE ECONOMIC
RESPONSE?
AND WHAT DOES THAT MEAN FOR
ONGOING SPENDING AND LONG-TERM
SUSTAINABILITY?
FINALLY THE THIRD POLICY
QUESTION IS, DO THE NEW
PROGRAMS PROPOSED IN THE BUDGET
ADD UP TO A COHERENT POLICY
STRATEGY TO ADDRESS THIS
MOMENT?
WE WILL TACKLE THESE QUESTIONS
THROUGHOUT THE WEEK IN
DEPARTMENT AND CROSS-CUTTING
ISSUE PAPERS, PARTICULARLY ON
ISSUES LIKE HOMELESSNESS, HUMAN
SERVICES, AND COMMUNITY-LED
INVESTMENTS.
ALTERNATIVES TO POLICING AND
THE CRIMINAL LEGAL SYSTEM, AND
THE TRANSPORTATION AND
INFRASTRUCTURE TO NAME A FEW.
ARE RESOURCES ALIGNED BEHIND
THE STRATEGY SO IT HAS A CHANCE
OF BEING SUCCESSFUL?
AND WHERE IN THESE DEPARTMENTS
OR PROPOSALS IS THERE NOT YET A
CLEAR STRATEGY?
IN THOSE PLACES, ARE THERE
OPPORTUNITIES TO SLOW DOWN,
PAUSE, OR SCALE BACK?
I LOOK FORWARD TO DIVING INTO
THE POLICY QUESTIONS WITH YOU
OVER THE NEXT THREE DAYS.
NEXT I WILL HAND IT TO MY
COLLEAGUE, ALY PENNUCCI,
CENTRAL STAFF POLICY AND BUDGET
MANAGER TO SHARE A FEW MORE
DETAILS ABOUT THE ISSUE
IDENTIFICATION PROCESS.
>> THANK YOU, DIRECTOR HANDY,
GOOD MORNING CHAIR AND
COUNCILMEMBER.
I'M ALY PENNUCCI OF COUNCIL
CENTRAL STAFF.
I'M HAPPY TO BE HERE TODAY TO
KICK OFF ISSUE IDENTIFICATION
DISCUSSIONS.
TODAY WE ARE ON STEP TWO IN THE
BUDGET PROCESS, AND STEP TWO OF
SIX.
AND JUST REITERATE SOME OF WHAT
THE DIRECTOR AND CHAIR TALKED
ABOUT, THESE DISCUSSIONS ARE AN
OPPORTUNITY FOR COUNCILMEMBERS
TO ASK QUESTIONS ABOUT THE
PROPOSED BUDGET, PROVIDE
DIRECTION TO STAFF ABOUT THE
OPTIONS IDENTIFIED THROUGH THE
ANALYSIS, AND OVER THE NEXT
THREE DAYS, THIS WILL BE AN
OPPORTUNITY FOR ALL OF US TO
BETTER UNDERSTAND YOUR
PRIORITIES AND INTERESTS AS WE
PREPARE THE BUDGET AMENDMENTS
AND WORK WITH THE CHAIR AND ALL
OF YOU TO PUT TOGETHER THE
COUNCIL'S BUDGET.
THIS SLIDE OUTLINES THE
DEPARTMENTS AND TOPICS COVERED
OVER THE NEXT THROW DAYS.
AS DIRECTOR HANDY NOTED, THE
BUDGET IS A LARGE DOCUMENT, AND
THESE DISCUSSIONS WILL NOT
COVER EVERY DETAIL IN THE
PROPOSED BUDGET, BUT IT
REFLECTS THE TREMENDOUS AMOUNT
OF WORK BY OUR CENTRAL STAFF
ANALYSTS TO UNPACK THE BUDGET
WITH NUMEROUS TECHNICAL
DOCUMENTS TO IDENTIFY KEY
ISSUES, AND I JUST WANT TO TAKE
A MOMENT TO REALLY THANK ALL OF
THE CENTRAL STAFF TEAM
FOR THEIR WORK TO UNPACK THIS
DOCUMENT TO WORK WITH
COUNCILMEMBERS AND THEIR TEAMS
TO CONSIDER OPTIONS FOR
CONSIDERATION.
AS A REMINDER, AS WE SORT
THROUGH ALL OF THIS, YOU KNOW,
THE EXECUTIVE HAS BEEN WORKING
FOR EIGHT MONTHS TO DEVELOP THE
PROPOSED BUDGET, AND WE HAVE
ALL HAD JUST OVER TWO WEEKS TO
REVIEW AND DIGEST THE DOCUMENT
TO REVIEW FOR YOUR DECISIONS.
IT'S AN IMPRESSIVE BODY OF
WORK, AND WE LOOK FORWARD TO
THOSE DISCUSSIONS.
THIS IS THE PLAN FOR THE REST
OF THE WEEK.
FOLLOWING DISCUSSIONS, QUICKLY
ON THE HEELS, ISSUE I.D.
DISCUSSIONS.
EXCUSE ME, DISCUSSION OF THE
PROPOSED COUNCILMEMBER
AMENDMENTS.
IT WILL BE DISCUSSED IN
COMMITTEE THE 26th THROUGH THE
28th . REMINDER FOR EVERYONE,
ANY ITEM, CHANGE, CUT,
STATEMENT OF LEGISLATIVE
INTENT, ANY IDEA YOU WANT
CONSIDERED NEEDS TO HAVE A
BUDGET AMENDMENT REQUEST
SUBMITTED TO CENTRAL STAFF.
THE DEADLINE IS MONDAY, OCTOBER
18th AT NOON, AND IT MUST
IMMEDIATE ALL REQUIREMENTS, AND
FEEL FREE TO CONTACT WE OFFLINE
IF YOU HAVE ANY QUESTIONS ABOUT
THAT PROCESS.
SO WITH THAT, I THINK WE ARE
READY TO JUMP INTO THE
DISCUSSIONS UNLESS
COUNCILMEMBERS HAVE QUESTIONS
ABOUT THE PROCESS.
>> THANK YOU VERY MUCH, DR.
HANDY, THANK YOU VERY MUCH, ALY
FOR THE WORK YOU HAVE DONE.
EXTENDING OUR THANKS TO THE
CENTRAL STAFF FOR PROVIDING THE
INFORMATION OVER THE NEXT THREE
DAYS.
I WILL NOTE FOR COLLEAGUES,
THIS IS OUR CHANCE TO HEAR
INFORMATION.
MAYBE THERE'S ISSUES SURFACED
FOR THE FIRST TIME THAT YOU
WERE NOT AWARE OF YET.
THE INITIAL REVIEW OF THE
BUDGET PROPOSED BY THE MAYOR,
YOU DON'T HAVE TO FEEL LIKE ALL
OF THE ISSUES HAVE TO BE
VERBALLY EXPRESSED HERE TODAY.
YOU MAY SIT WITH THE
INFORMATION OVER THE NEXT TWO
OR THREE DAYS, AND PERHAPS OVER
THE WEEKEND AS WELL, AND YOU
WILL REALIZE, HEY, THAT'S AN
ISSUE I WOULD LIKE TO SEE
ADDRESSED.
I HAVE AN AMENDMENT TO HELP
TACKLE THE ISSUE, TO MAYBE
BRING THE PROGRAMS TO SCALE OR
ADD THE ITEMS BACK THAT YOU SAW
AS REDUCED OR CUT.
IT'S THE CHANCE TO HEAR THE
ITEMS, AND IF YOU DON'T GET THE
CHANCE TO TALK ABOUT SOMETHING
ON YOUR PRIORITY LIST, THAT'S
OKAY.
IT MAY COME TO YOU BEFORE THE
DEADLINE OF NOON ON MONDAY.
WE DO HOPE THAT IT HAS BEEN
CLEARLY COMMUNICATED, ALL OF
THE AMENDMENTS NEED TO BE
SUBMITTED BY NOON ON MONDAY,
AND THAT HELPS ME AS THE BUDGET
CHAIR ALONG WITH CENTRAL STAFF
TO BE ABLE TO IDENTIFY ALL OF
THE
ISSUES FOR OUR CONSIDERATION AS
WE CRAFT THE BUDGET PROPOSAL
FOR CONSIDERATION.
EVERY ITEM IN THE BUDGET WILL
HAVE AN ASSOCIATED CITY BUDGET
AMENDMENT TO GO WITH IT.
THOSE DO NEED TO BE SUBMITTED
BY NOON ON MONDAY, BUT IT'S
ALSO AN OPPORTUNITY OVER THE
NEXT THREE DAYS TO SIT AND
LISTEN AND SHARE IDEAS AND
REALLY HAVE DIE LEAGUE, BUT NO
PRESSURE IF YOU HAVE AN IDEA
THAT COMES TO YOU LATE ON
THURSDAY OR FRIDAY AND YOU
DIDN'T GET A CHANCE TO BRING
IT UP, YOU CAN PUT FORTH THE
BUDGET AMENDMENT TO ADDRESS THE
ISSUES, AND WE LOOK FORWARD TO
THE EXPLICIT DISCUSSION WHEN WE
HAVE THOSE DISCUSSIONS AS ALY
NOTED, STARTING ON OCTOBER 26th
, 27th, AND 28th.
>> OKAY.
ANY ADDITIONAL QUESTIONS?
THANK YOU FOR THE OVERVIEW
DIRECTOR HANDY, AND ALY
PENNUCCI.
IT'S GREAT TO SEE YOU AGAIN.
TO MOVE US TO THE OFFICIAL
PORTION OF THE PRESENTATION, WE
WILL READ ITEM NUMBER TWO TO
THE RECORD.
MADAM CLERK?
ITEM TWO FOR THE RECORD?
MADAME CLERK, YOU MAY BE ON
MUTE.
>> APOLOGIES, COUNCILMEMBER.
>> NO PROBLEM.
>> AM I READING NUMBER TWO?
>> YES.
>> OVERVIEW OF THE 2022
PROPOSED BUDGET.
APOLOGIES.
>> THANK YOU VERY MUCH, MADAME
CLERK, AND WELCOME BACK, ALY.
>> THANK YOU.
THE FIRST DISCUSSION, THE FIRST
PAPER IS BRIEF.
I WILL BE PROVIDING A READER'S
GUIDE FOR THE INFORMATION FOUND
IN THIS PAPER.
THE OVERVIEW OF THE 2022
PROPOSED BUDGET IS A RESOURCE
FOR COUNCILMEMBERS AND THE
PUBLIC PROVIDING A CONCISE
OVERVIEW.
IT WILL NOT COVER ALL THE
INFORMATION IN THE PAPER TODAY.
INSTEAD, AGAIN, I WILL BRIEFLY
DESCRIBE WHAT INFORMATION YOU
WILL FIND IN THE PAPER.
I DO HAVE CENTRAL STAFF
COLLEAGUES ON THE LINE SHOULD
YOU HAVE ANY IMMEDIATE
QUESTIONS.
WE DON'T DEVELOP A STAND-ALONE
ISSUE I.D.
FOR EVERY DEPARTMENT OR OFFICE,
BUT WE DO REVIEW THE BUDGET IN
ITS ENTIRETY.
THIS HIGHLIGHTS THE REVIEWS,
AND THE PAPER IS BROKEN INTO
FOUR SECTIONS.
THE FIRST SECTION DEFINES THE
ABBREVIATIONS THAT YOU WILL
FIND USED THROUGHOUT THE PAPER.
I WILL NOT GO INTO MUCH DETAIL
ON THAT, BUT IT'S AVAILABLE,
AND I WILL WALK THROUGH WHAT
YOU WILL FIND IN THE OTHER
SECTIONS OF THE PAPER.
SECTION TWO IS SORT OF ABOUT
THE HEART OF THE PAPER.
PROVIDES A HIGH-LEVEL SUMMARY
OF EVERY DEPARTMENT AND OFFICE
COVERED IN THE 2022 PROPOSED
BUDGET, AND IF FOLLOWS THE SAME
PROPOSED BUDGET BOOK.
IT'S ARRANGED BY THE SIX MAIN
CATEGORIES YOU WILL FIND IN THE
BUDGET BOOK, AND ALPHABETICALLY
BY DEPARTMENT.
THE OVERVIEW IS A RESOURCE FOR
THE COUNCIL AND PUBLIC TO
QUICKLY REVIEW NOTABLE CHANGES
IN THE PROPOSED BUDGET, OFFER
CONCISE SUMMARY COMPARED TO THE
THOROUGH DESCRIPTIONS YOU WILL
FIND IN THE BUDGET BOOK, 89
THROUGH 588 FOR PAGES.
THE 30-OR-SO PAPER HIGHLIGHTS
THE KEY CHANGES OF NOTE IN THE
PAPER OR IN EACH DEPARTMENT.
FOR EACH DEPARTMENT WE HAVE
INCLUDED A SUMMARY TABLE THAT
PROVIDES A GLIMPSE IN THE
OVERALL CHANGES OF THE PROPOSED
BUDGETS IT SHOWS CHANGES TO
APPROPRIATIONS AND FTEs FOR THE
2022 PROPOSED BUDGET, AND IT
COMPARES TO THE 2021 ADOPTED
BUDGET.
ON THIS SLIDE AND THE NEXT ONE,
TWO EXAMPLES OF WHAT YOU CAN
FIND IN THOSE TABLES, AND IT
SHOWS OVERALL, THE AMOUNT OF
CHANGE IN THE DEPARTMENT, AND
THIS IS AN EXAMPLE OF THE TABLE
THAT ONLY INCLUDES OPERATING
FUNDS, AND THEN, A SECOND
EXAMPLE IF THE DEPARTMENT
INCLUDES A CAPITAL BUDGET, AND
IT SHOWS HOW THOSE SPECIFIC
PORTIONS OF THE BUDGET CHANGE
OVERALL.
TOTAL IN APPROPRIATION SHIFTS,
AND CHANGES IN FTEs.
FOLLOWING THE TABLES IN THE
PAPER, YOU WILL FIND EITHER FOR
DEPARTMENT OFFICES OR CROSS-
CUTTING ISSUE AREAS THAT ARE
THE SUBJECT OF THE CENTRAL
STAFF STAND ALONE
IDENTIFICATION, YOU WILL FIND A
DETAILED OVERVIEW AND ANALYSIS
OF THE PROPOSED BUDGETS, AND
FOR THOSE DEPARTMENTS AND
OFFICES THAT ARE NOT SUBJECT TO
THE STAND-ALONE PAPER, YOU WILL
FIND THE DESCRIPTION OF NOTABLE
CHANGE IN THE DEPARTMENT'S
BUDGET.
ON THE SCREEN IS JUST AN EVEN
MORE CONCISE SUMMARY THAN YOU
WILL FIND IN THE PAPER OF THE
NOTABLE CHANGES YOU MAY FIND IN
THE SEATTLE PUBLIC UTILITIES'
PROPOSED BUDGET.
THESE ARE NOT ISSUES IDENTIFIED
BY CENTRAL STAFF, BUT JUST
FLAGGING FOR THE COUNCILMEMBER
THE CHANGES IN THE PROPOSED
BUDGET THAT ARE NOT TECHNICAL.
FOR SOME DEPARTMENTS WHOSE
BUDGET IS NOT CHANGING BEYOND
TECHNICAL AMENDMENTS, WE WILL
HAVE NOTED THAT WE DIDN'T
IDENTIFY ANY CHANGES.
SECTION THREE OF THE PAPER
DESCRIBES THE 24 PIECES OF
BUDGET LESSON THAT WERE
TRANSMITTED WITH THE MAYOR'S
MANY PIECES OF THE LET'S WILL
BE DISCUSSED IN THE UPCOMING
DETAIL OF THE IDENTIFICATION
DISCUSSIONS.
MOST OF THE BUDGET LEGISLATION
WILL BE INTRODUCED IN THE NEXT
WEEK OR TWO, BUT LEGISLATION
WITH SIGNIFICANT POLICY
QUESTIONS TO RESOLVE BEFORE
COUNCIL MAY BE MAKING A
DECISION WILL NOT BE INTRODUCED
UNTIL WE BETTER UNDERSTAND HOW
OR IF CERTAIN POLICIES OR
PROCESSES NEED TO BE MODIFIED
IN ORDER TO IMPLEMENT THE
COUNCIL'S BUDGET.
AND THE LEGISLATION IS
ORGANIZED BY CATEGORIES TO JUST
HIGHLIGHT WHETHER OR NOT IT'S
AN MOMENT TO ADOPT OR ENDORSE
THE BUDGET RELATED TO PROPERTY
TAXES ETC.
ALL OF THE LEGISLATION WOULD BE
NECESSARY TO IMPLEMENT THE
BUDGET AS PROPOSED BY THE
MAYOR, BUT NOT ALL OF IT WILL
BE NECESSARY TO -- SOME PIECES
OF THE LEGISLATION MAY NOT BE
NECESSARY ULTIMATELY IN ORDER
TO IMPLEMENT THE COUNCIL'S
BUDGET.
>> TO PUT A FINER POINT ON
THAT, WOULD IT BE FAIR TO SAY
SOME OF THE LEGISLATION
SUBMITTED ARE POLICY CHOICES
THAT THE MAYOR AND THE
EXECUTIVE TEAM HAS EMBEDDED
WITHIN THE PROPOSED BUDGET TO
THE DEGREE THAT COUNCIL HAS THE
CHANCE NOW TO DRAFT OUR OWN
BUDGET RESPONSE, OUR POLICY
CHOICES?
THAT'S WHERE THERE'S A
DIFFERENCE OF POTENTIAL NEED
FOR THE LEGISLATION?
>> THAT IS CORRECT.
SPECIFIC PIECES OF LEGISLATION?
>> THAT'S CORRECT.
IN THE NEXT PRESENTATION ON THE
GENERAL FUND BALANCING PROCESS,
YOU WILL SEE TWO KEY EXAMPLES.
ONE WILL AMEND THE JUMPSTART
FUND POLICIES AND THE CITY'S
POLICIES FOR THE EMERGENCY
FUND.
THOSE ARE POLICY CHOICES.
IT WILL DEPEND ON THE DIRECTION
THE COUNCIL CHOOSES TO GO AND
CONTRIBUTIONS FOR RESERVES,
WHETHER OR NOT THE CHANGES TO
THE FUND POLICIES ARE NECESSARY
AND WHETHER OR NOT THE POLICIES
TRANSMITTED BY THE MAYOR ARE
THE RIGHT POLICIES.
YOU MAY WANT AMEND THE POLICIES
IN A DIFFERENT WAY.
WE ARE HOLDING INTRODUCTIONS TO
INTRODUCE THE BILL THAT
REFLECTS COUNCIL'S POLICY
PRIORITIES AND
FINALLY THE PAPER INCLUDES FOUR
DESCRIPTIONS.
THERE'S SPENDING CATEGORIES WE
HAVE BEEN GETTING INTEREST ON,
INCLUDING PROPOSED NEW SPENDING
RELATED TO AFFORDABLE HOUSING
TO IMPLEMENT THE GREEN NEW
DEAL, AND THE PROPOSED VALLEY
INVESTMENTS.
THE FOURTH ATTACHMENT IS AN ALL-
IN-ONE TABLE FOR EACH
DEPARTMENT OR OFFICE COMPARED
TO 2021.
LATER IN THE PROCESS, AND WE
WILL BE PROVIDING A COMPARISON,
SHOWING HOW THE COUNCIL'S
BUDGET COMPARES TO THE 2020
ADOPTED BUDGET, AND IT'S
REFLECTED IN THE BALANCING
PACKAGE YOU WILL VOTE ON
TOWARDS THE END OF THE PROCESS.
SO, AGAIN THIS PAPER IS MEANT
TO BE A RESOURCE.
WE ARE NOT GOING TO WALK
THROUGH IT IN DETAIL TODAY.
THAT COULD TAKE THE ENTIRE DAY,
AND I AM HAPPY TO ANSWER
QUESTIONS BECAUSE AS I
MENTIONED PREVIOUSLY, I HAVE MY
CENTRAL STAFF COLLEAGUES ON THE
LINE IF THERE'S QUESTIONS
SPECIFIC TO ANY DEPARTMENT THAT
ARE URGENT
TO ASK NOW.
.
>> THANK YOU, ALY.
I'M NOT SEEING ANY HANDS.
>> THANK YOU.
THAT'S ALL I HAVE FOR THIS
PIECE OF THE PRESENTATION.
>> WONDERFUL.
>> SHOULD WE MOVE ON TO THE
NEXT ITEM OF BUSINESS, OR DO
YOU HAVE OTHER CENTRAL STAFF?
AVAILABLE?
>> OTHER CENTRAL STAFF ANALYSTS
ARE AVAILABLE IF COUNCILMEMBERS
WANT TO ASK A QUESTION SPECIFIC
TO THE OVERVIEW PAPER.
>> WE WILL GIVE FOLKS A QUICK
SECOND TO GET ORIENTED HERE.
AGAIN, ITEM NUMBER TWO IS WHERE
WE ARE AT FOR THE DELIBERATIONS
TODAY, BEFORE WE MOVE ON TO THE
PRESENTATION, AND I THINK FROM
TOM AND ALY ABOUT REVENUE AND
ALLOCATION OF THE RESOURCES
THAT THE CITY HAS RECEIVED FROM
THE GENERAL FUND BUDGET.
OKAY, I'M NOT SEEING ANY
ADDITIONAL QUESTIONS.
LET'S PULL UP THE CENTRAL STAFF
MEMO, BRIEFLY IF WE CAN RELATED
TO ITEM NUMBER TWO.
>> I'M JUST HAVING A TECHNICAL
ISSUE.
>> THAT'S OKAY.
>> ONE SECOND AND I WILL GET
THE MEMO ON THE SCREEN.
>> DANG GOOD MEMO.
[ LAUGHTER ]
>> THANK YOU COUNCILMEMBER
JUAREZ.
APPRECIATE IT.
IT IS VERY DETAILED, AND --
>> LOVE IT.
>> AND I KNOW, YOU, LIKE ME
HAVE HIGHLIGHTERS AND FLAGS.
>> I HAVE FOUR COLORS.
>> I HAVE THREE.
>> IT'S A COMPETITION NOW.
I MISS SITTING BY YOU SO WE CAN
BORROW HIGHLIGHTERS.
>> I KNOW.
>> OKAY, COLLEAGUES, ANY OTHER
QUESTIONS ANYONE MAY HAVE?
I HAVE QUESTIONS I MAY THROW
OUT THERE IF NO ONE ELSE IS
RAISING
THEIR HANDS.
YOU KNOW WHAT, ALY, I THINK I
WILL SAVE THE QUESTIONS FOR THE
NEXT PRESENTATION IF THAT'S
OKAY WITH YOU.
WE APPRECIATE THE WORK CENTRAL
STAFF PUT INTO THE MEMOS, AND
SOME OF THE QUESTIONS THAT WILL
RELATE TO THE DEPARTMENT
REVENUE OVERALL, I THINK WE CAN
ALSO COME BACK TO AT THE END OF
TOM'S PRESENTATION, TOO, AND WE
CAN TAKE QUESTIONS RELATED TO
BOTH ONCE WE GET ORIENTED HERE.
>> ALL RIGHT.
>> THANK YOU VERY MUCH.
I SAW TOM POP ON THE SCREEN,
PREEMPTIVE, THANK YOU FOR BEING
HERE WITH US.
TOM MIKESELL.
APPRECIATE IT.
MADAME CLERK, CAN YOU PLEASE
READ ITEM NUMBER THREE INTO THE
RECORD.
>> ITEM THREE, GENERAL FUND
BALANCING ANALYSIS.
>> I WANT TO WELCOME TOM
MIKESELL TO THE STAGE.
THANK YOU, TOM.
AS FOLKS KNOW FROM THE BUDGET
ACTIONS OVER THE LAST TWO
YEARS, TOM HAS REALLY BEEN THE
ENGINE BEHIND DISSECTING THE
REVENUE SOURCES AND LOOKING AT
WHETHER OR NOT THERE'S ANY ROCK
THAT HAS BEEN UNTURNED OR ANY
ITEM THAT WAS ERRONEOUSLY
CALCULATED.
WE HAVE BEEN ABLE TO UNCOVER
IMPORTANT OPPORTUNITIES FOR THE
COUNCIL TO RIGHT SOME AREAS AND
IDENTIFY SOME POSSIBLE REVENUE
FOR IMPORTANT INVESTMENT.
THANK YOU, TOM, FOR THE WORK
YOU DID.
I WILL LET YOU TAKE IT AWAY.
>> THANK YOU FOR THE
INTRODUCTION, MADAM CHAIR.
GOOD MORNING.
I'M TOM MIKESELL WITH CENTRAL
STAFF.
THERE IS, I BELIEVE, 20-SOME-
PAGE PAPER THAT PROVIDES
ANALYSIS.
I WILL GIVE AN OVERVIEW OF THE
HIGH POINTS FROM THAT PAPER.
TOPICS WILL BE COVERING THIS
MORNING WILL BE THE CLOSING OUT
OF THE STATUS OF THE 2021
GENERAL FUND ADJUSTMENTS FOR
REVIEW OF THE 2022 PROPOSED
BUDGET FOR THE GENERAL FUND FOR
THE MAYOR, LOOKING AT REVENUES
AND EXPENDITURES, AND THE
IMPACTS OF VARIOUS STAGES IN
THE BUDGET PROPOSAL ON THE
TRACKING OF THE BALANCE AND THE
GENERAL FUND.
DUE TO SOME POLICY CHANGES, OUR
PROPOSE POLICY CHANGES THAT
ALY MENTIONED IN HER OVERVIEW
OF THE BUDGET, WE ARE ALSO
GOING TO FOCUS ON THE
IMPLICATIONS OF THE MAYOR'S
GENERAL FUND PROPOSAL OF THE
JUMPSTART FUNDING PLAN AS
ADOPTED BY COUNCIL EARLIER IN
THE YEAR, AND FINALLY OFFER UP
SOME ISSUES THAT HAVE BEEN
IDENTIFIED THROUGH MY ANALYSIS
AND SOME OPTIONS THAT WERE
IDENTIFIED PRIOR TO THOSE
ISSUES.
SO THIS FIRST SLIDE, IT
ACTUALLY COVERS INFORMATION UP
TO PAGE FIVE IN THE MEMO ON THE
AGENDA.
I'M NOT GOING TO COVER ALL OF
THE DETAILS, GIVEN THE FOCUS OF
THE BUDGET DELIBERATION PROCESS
IS ON THE 2022 BUDGET.
I WANT TO GO THROUGH THE
VARIOUS STAGES OF THE
DELIBERATION BECAUSE THERE'S
BEEN MUCH ACTION WITH ADJUSTING
THE BUDGET AND DEALING WITH THE
COVID RESPONSE.
IT'S WORTH MENTIONING, AND IT
ALSO PROVIDES A GOOD LAUNCHING
POINT FOR THE 2022 DISCUSSION,
SO THIS FIRST COLUMN OF THE
FIRST TABLE, IT'S THE 2021
BUDGET ADOPTED BY COUNCIL LAST
NOVEMBER.
THERE'S BEEN A NUMBER OF
TECHNICAL AND SUPPLEMENTAL
CHANGES LAID INTO THE BUDGET.
EARLIER IN THE YEAR, SOME OF
THOSE INCLUDE SOME AUTOMATIC
CARRY FORWARDS OF THE AMOUNTS
APPROVED BUT NOT FULLY SPENT OR
RECEIVES IN THE PRIOR YEARS OF
2020.
THOSE HAPPENED WITHOUT NEED FOR
FURTHER COUNCIL AUTHORIZATION,
AND THERE WAS A COMPREHENSIVE
CARRY FORWARD BILL PROPOSED TO
COUNCIL, PASSED BY COUNCIL
EARLIER IN THE YEAR, AND IT
PROVIDED LEGISLATIVE AUTHORITY
FOR THOSE AMOUNTS THAT DID NOT
AUTOMATICALLY CARRY FORWARD,
AND THERE WAS A MID-YEAR
SUPPLEMENTAL AND GRANT PACKAGE
THAT WAS DELIBERATED IN THE
FINANCE AND HOUSING COMMITTEE,
AND PASSED BY COUNCIL, AND IN
THE SUMMER, AND THEN FINALLY
THERE, ACTUALLY THIS IS THE
NEXT LAYER, COVID RELIEF
RECOVERY MEASURES.
NO FEWER THAN SEVEN PIECES OF
STAND-ALONE LEGISLATION,
LARGELY GEARED COVID-19 RELIEF
AND RECOVERY MEASURES THAT ARE
ONGOING FOR THE 2021 BUDGET.
ALSO TWO ADJUSTMENTS TO THE
CITY BUDGET OFFICES REVENUE
FORECAST.
ONE IN APRIL, AND THE MOST
RECENT ONE IN AUGUST.
THOSE INCREASED THE REVENUES BY
APPROXIMATELY $71 MILLION OR
4.5% OVER THE 2021 ADOPTED
FORECAST, AND ALSO THIS
ACCOUNTS FOR MERCIER MEGABLOCK
SALE DEEDS, ORIGINALLY INTENDED
TO BE RECEIVED IN 2020, AND
TOTALLY ABOUT $66.5 MILLION.
HOWEVER, RECEIPT OF THE
PROCEEDS ARE DELAYED, INSTEAD
RECEIVED IN 2021.
I WANT TO NOTE THAT IS JUST
RECOGNIZING A MOVEMENT OF CASH
BETWEEN FISCAL YEARS, AND IT
DOESN'T REPRESENT ANY
ADDITIONAL RESOURCES TO SPEND
BECAUSE THOSE MONEYS HAVE BEEN
FULLY ALLOCATED IN THE BUDGET.
AND THEN FINALLY, THE MOST
SALANT PIECE OF DISCUSSION THE
YEAR END SUPPLEMENT.
THE IMPACT OF $3.6 MILLION,
WHICH I WILL COVER ON THE NEXT
SLIDE.
THE 2021 REVISED BUDGET IS
BALANCED.
IN PRIOR YEARS, COUNCIL HAS
RECEIVED UP TO THREE DIFFERENT
SUPPLEMENTAL BILLS WITH THE
FINAL ONE TAKING THE FORM OF
THE FOURTH SUPPLEMENTAL.
IT HAS BEEN NORMALLY
TRANSMITTED TO THE COUNCIL IN
DECEMBER OF THE BUDGET YEAR.
THIS SEQUENCING OF THE
SUPPLEMENTAL BILL MEAN THERE IS
ARE FINANCIAL DECISIONS THAT
AFFECT THE BUDGET THAT ARE NOT
FULLY INCLUDED IN THE MORE
ROBUST NOVEMBER BUDGET PROCESS
THAT THE COUNCIL ENGAGES IN.
UNDER THE DIRECTION OF THE
BUDGET CHAIR, THE CITY BUDGET
OFFICE AND EXECUTIVE HAS,
INSTEAD, TAKEN A DIFFERENT
APPROACH TO THE SUPPLEMENTAL
BUDGETING FOR THIS FISCAL YEAR,
AND BY WAY OF A PROCESS THAT
ROLLS NORMALLY THE FOURTH
QUARTER ADJUSTMENTS INTO A YEAR-
END SUPPLEMENTAL PROCESS,
INCLUDED AS PART OF THE OVERALL
BUDGET PROCESS.
WHAT HAS BEEN TRANSMITTED FROM
THE EXECUTIVE IS THE
SUPPLEMENTAL PACKAGE INCREASING
THE GENERAL REVENUES BY $3.9
MILLION.
I THINK THE NUMBERS ARE WRONG.
APOLOGIES.
NO, THAT'S CORRECT.
INCREASES THE GENERAL FUND
REVENUE BY $3.9 MILLION BECAUSE
OF GRANTS ACCEPTED AND CUTS THE
GENERAL FUND EXPENDITURES BY
$376,000 LARGELY DUE TO THE
CLOSEOUT OF A FEW RESERVES AND
FINANCE IN GENERAL.
THE MEMO INCLUDED WITH THE
AGENDA ITEM IS A FULL LIST OF
THE GRANTS PROPOSED FOR
ACCEPTANCE BY COUNCIL.
FINALLY, GIVEN THAT WE WILL NOT
BE TRANSMITTING A FOURTH
QUARTER SUPPLEMENT, THE CITY
BUDGET OFFICE IS INTENDING TO
TRANSMIT AN AMENDMENT OR JUST
AN UPDATED VERSION OF THE YEAR-
END SUPPLEMENTAL BILL IN EARLY
NOVEMBER THAT WILL THEN BE
INTRODUCED AS THE FULL YEAR-END
SUPPLEMENTAL GRANTS PACKAGE,
GIVEN THEY DON'T KNOW WHAT FORM
THAT WILL TAKE AND WHAT
IMPLICATIONS WILL BE, THEY ARE
GIVING $2 MILLION FOR A
BACKSTOP FOR UNFORSEEN ITEMS
THAT MAY TAKE FORM IN THAT
UPDATE.
>> COLLEAGUES, BECAUSE WE WENT
THROUGH THE FIRST TWO PORTIONS
SO QUICKLY, I WANT TO ENCOURAGE
YOU IF YOU HAVE QUESTIONS AS
TOM IS PRESENTING, RAISE YOUR
HAND, AND WE WILL INTERSPERSE
THEM THROUGHOUT.
GIVEN THE TIME WE HAVE.
WE DO HAVE 2 1/2 HOURS, AND
FEEL FREE TO ASK THE QUESTIONS
AS WE GO ALONG.
I HAVE A COMMENT I WILL MAKE
HERE TO LIFT UP WHAT DIRECTOR
HANDY SAID.
I THINK DIRECTOR HANDY PUT IT
VERY CLEAR THAT -- BUT FOR THE
WORK THIS COUNCIL DID LAST
YEAR, FOLLOWING THE LEAD OF
WHAT THE COMMUNITY WAS CALLING
FOR, AND LARGE COALITION, IF IT
WASN'T FOR THAT PAYROLL
PROGRESSIVE TAX, WE WOULD BE
SEEING AN ALL-CUTS BUDGET.
IT'S FAIR TO SAY THIS BALANCED
BUDGET IS BROUGHT TO YOU
BECAUSE OF THE GOOD WORK THAT
THE COMMUNITY AND YOU ALL DID
TO PASS JUMPSTART PROGRESSIVE
REVENUE, AND I THINK THE
QUESTIONS DIRECTOR HANDY
OUTLINED WHETHER OR NOT THOSE
ARE THE WAYS IN WHICH WE HAD
DIRECTED THE EXECUTIVE TO USE
THE DOLLARS IS WHAT WE ARE
GOING TO DISCUSS LATER TODAY,
BUT I WANT TO THANK YOU FOR
YOUR WORK LAST YEAR, AND THE
WORK THAT IT TOOK OVER THE
YEARS FOR THE CALL FOR
PROGRESSIVE REVENUE FROM THE
COMMUNITY BECAUSE WE HAVE THE
OPPORTUNITY TO MAKE SURE THE
BALANCED BUDGET BY THE TIME
IT'S APPROVED REFLECTS THE
VALUES AND PRIORITIES OF THE
COUNCIL.
THANK YOU, DIRECTOR FOR THE
OPENING COMMENTS AND THE
PROPOSED BUDGET.
IF YOU HAVE ANY CONCERNS OR
DISAGREE WITH WHAT I JUST SAID,
OF COURSE, CENTRAL STAFF, FEEL
FREE TO CORRECT ME, BUT I
THOUGHT IT WAS AN IMPORTANT
ELEMENT TO RELIFT UP HERE AS WE
LOOK AT THE GOOD NEWS YOU
SHARED ABOUT IT BEING BALANCED
AND RECOGNIZING HOW COME AND
WHY IT'S BALANCED HERE TODAY.
OKAY.
I'M NOT SEEING ANY HANDS.
LET'S GO AHEAD AND CONTINUE.
>> OKAY, MADAME CHAIR.
NOW WE ARE GOING TO LAUNCH INTO
THE DISCUSSION OF THE 2020
PROPOSE GENERAL FUND BUDGET.
THE FIRST QUESTION, WHY THE
GENERAL FUND AND NOT THE OTHER
FUNDS, AND THE REASON FOR THAT
BECAUSE MOST CITY DEPARTMENTS
HAVE SOME FUNDING FROM THE
GENERAL FUND, AND SOME ARE
COMPLETELY FUNDED FROM THE
GENERAL FUND.
IT'S A CATCH-ALL FUNDING SOURCE
FOR MOST GENERAL GOVERNMENT
PROGRAMS AND SERVICES THAT THE
CITY OF SEATTLE PROVIDES.
SO COMMENTS FOR THE REMAINDER
OF MY PRESENTATION WILL FOLLOW
THIS CENTRAL OUTLINE.
LOOKING AT THE BASELINE GENERAL
FUND BUDGET, WHAT IT COSTS TO
MAINTAIN THE SERVICES THAT HAVE
BEEN APPROVED IN PRIOR BUDGETS,
AND HOW MUCH REVENUE IS
ANTICIPATED TO SUPPORT THAT.
WE WILL LOOK AT IT POSITIVE TO
THE FISCAL RESERVES.
THAT'S PROPOSED IN THE BUDGET,
AND AS MENTIONED, IMPLICATIONS
FOR THE JUMP START SPENDING
PLAN THAT ALLOWS SOME LEVEL OF
SUPPORT FOR THE GENERAL FUND IF
THE REVENUES HAVE NOT FULLY
RECOVERED TO PRECOVID LEVELS.
WE WILL LOOK AT THE
IMPLICATIONS OF THAT, AND ALSO
WE WILL LOOK AT THE EQUITABLE
COMMUNITIES INITIATIVE THAT HAD
PRESENCE IN THE 2020 PROPOSED
BUDGET AND ONCE AGAIN HAS BEEN
REPROPOSED IN SOMEWHAT
DIFFERENT FUNDING STRUCTURE IN
THE PROPOSED 2022 BUDGET, AND
LOOK AT ALSO, OTHER KEY
SPENDING ITEMS THAT HAVE BEEN
PROPOSED FOR FUNDING IN THE
2022 BUDGET, AND FINALLY LOOK
AND CHANGE THE LENS TO LOOK AT
THE IMPLICATIONS OF THE GENERAL
FUND OF LARGELY BECAUSE OF THE
GENERAL FUND BACK FILL AND ALSO
BECAUSE OF HOW THE MAYOR HAS
PROPOSED SPENDING THROUGH THE
JUMPSTART FUND, AND LOOK AT THE
PROPOSED POLICY CHANGE AND WHAT
THE IMPLICATIONS ARE FOR THE
SPENDING PLAN ITEMS IN THE
JUMPSTART FUND ORDINANCE.
>> THANK YOU VERY MUCH.
JUST TO ORIENT US, THIS IS THE
SLIDE THAT COVERS THE MATERIAL
IN TOM'S MEMO THAT STARTS ON
AGE 7 TO PAGE 25.
GOING FORWARD WE WILL COVER
PAGE 7 TO 25 HERE, AND THE
PREVIOUS SLIDE WAS AN OVERVIEW
OF THE INFORMATION IN THE
CENTRAL STAFF PAGES 1 TO 7. IF
YOU'RE FOLLOWING ALONG WITH THE
MEMO, WHICH IS VERY DETAILED AS
WELL.
GREATLY APPRECIATE THE WORK IN
THE STAFF MEMO, AND FLIP TO
PAGE 7, AND WE WILL WALK
THROUGH THE MATERIALS IN THE
CENTRAL STAFF MEMO AND THE
CHARTS AND THE DATA THAT TOM
HAS PULLED UP FOR US.
ALSO, JUST TO ORIENT US, ON
ITEM NUMBER FOUR HERE,
EQUITABLE COMMUNITIES
INITIATIVE, THIS IS THE MAYOR'S
TASK FORCE THAT SHE CONVENED
LAST YEAR, RELATED TO
INVESTMENTS, AND I WANT TO MAKE
SURE IF YOU'RE LOOKING FOR
SHORTHAND, THAT'S TASK FORCE.
I DON'T WANT FOLKS TO GET
EQUITABLE COMMUNITIES
INITIATIVE AND EQUITABLE
HOUSING.
THAT'S THE TASK FORCE
RECOMMENDATIONS NO ADDITIONAL
HANDS, LET'S KEEP GOING.
.
>> THANK YOU, OKAY, SO NOW
LAUNCHING INTO THE TECHNICAL
ITEMS OF THE PRESENTATION, AND
THIS, JUST THE FIRST, KIND OF A
FOUNDATIONAL PURPOSES, AND I
WILL EXPLAIN HOW THE SLIDE
WORKS.
THERE ARE SEVERAL VERSIONS OF
THE SLIDE AS WE TRACK THROUGH
THE INCREMENTAL ADDS AND HOW
THEY IMPACT THE BALANCE OF THE
GENERAL FUND.
MOVING FROM TOP LEFT GOING
BLOCKWISE.
FIRST, YOU WILL SEE WHAT IT IS,
THE SUBJECT MATTER WE ARE
TALKING ABOUT.
THE 2022 BASELINE.
BELOW THAT ARE THE NUMBERS THAT
DRIVE THE CHART, AND KEY NUMBER
IS THE BASELINE BALANCE,
INDICATING IF THE BALANCE IS
POSITIVE OR NEGATIVE, AND A BIT
OF TECHNICAL INFORMATION
PROVIDED BELOW THAT, AND JUST
EXPLAINING THE KEY DETAILS OF
THE ADJUSTMENT, AND THEN THE
GRAPH, AND YOU KNOW, FAMILIAR-
LOOKING BAR GRAPH, MEASURING
THE RUNNING TOTALS OF THE
EXPENDITURES AND REVENUES BASED
ON CHANGES, AND THE YELLOW BOX
ON THE BOTTOM, JUST FURTHER
EXPLAINING WHAT IT IS, IF IT'S
A SHORTFALL, BALANCE, OR
SURPLUS, BASED ON THE
PARTICULAR CHANGE.
AGAIN, THERE WILL BE A NUMBER
OF SLIDES IN THIS FORMAT, AND
HOPEFULLY THAT HELPS ORIENT TO
HOW TO UNDERSTAND AND INTERPRET
THE INFORMATION.
SO BY WAY OF THE DETAIL ABOUT
THIS PARTICULAR SLIDE AND THE
INFORMATION IT CONTAINS.
THIS IS THE -- ESSENTIALLY THE
LOOK AT WHERE THE GENERAL FUND
STANDS AFTER ROLLING THE 2021
ADOPTED BUDGET PROGRAMS THAT
ARE SLATED TO CONTINUE INTO THE
FUTURE YEARS, AND ADJUSTING FOR
TECHNICAL COSTS SUCH AS
INFLATION, HEALTH CARE CHANGES,
THINGS LIKE THAT, AND THEN
ACCOUNTING FOR WHAT THE
BASELINE REVENUE FORECAST IS
FROM THE CITY BUDGET OFFICE,
AND YOU CAN SEE THERE, THERE IS
APPROXIMATELY $1.43 BILLION OF
REVENUE IN THE BASELINE
FORECAST, AND THEN THAT IS IN
PLACE TO FUND 1.48 BASELINE
BILLION OF BASELINE
EXPENDITURES IN THE GENERAL
FUND.
AS YOU CAN SEE, IT RESULTS IN A
$51 MILLION SHORTFALL TO
MAINTAIN ONGOING SERVICES IN
THE GENERAL FUND.
SO JUST GOING IN ORDER, ONE
ITEM PROPOSED IN THE BUDGET
THAT HAD A DEPOSIT FOR THE
FISCAL RESERVES, BEFORE GOING
INTO THAT, THE DEPOSIT, IT'S
IMPORTANT TO LOOK AT THE TRACK
RECORD SINCE STARTING COVID,
'19 RECESSION, AND IMPACTS ON
HOW
THE CITY HAS DEPLOYED TO KEY
RESERVES TO ADDRESS THE
EMERGENCIES, BOTH ON A PUBLIC
HEALTH NEEDS BASIS AND AS WELL
AS A REVENUE LOSS BASIS.
SO AT THE CITY OF SEATTLE, WE
HAVE TWO PRIMARY GENERAL
GOVERNMENTAL RESERVES THAT CAN
BE USED.
FIRST THERE'S THE REVENUE
STABILIZATION FUND, AND IT'S IN
PLACE FOR DOWN TURNS IN
REVENUES BECAUSE OF RECESSIONS
OR OTHER IMPACTS.
THE EMERGENCY FUND, WHICH IS A
POOL OF MONEY THAT IS AVAILABLE
TO DEAL WITH NATURAL DISASTERS,
PUBLIC HEALTH EMERGENCIES,
THINGS OF THAT NATURE.
THINGS THAT REQUIRE A SWIFT
RESPONSE AND A POT OF MONEY
AVAILABLE TO HELP DEAL WITH THE
RESPONSE.
GIVEN THE OBVIOUS RESOURCE
CONSTRAINTS.
GOING INTO THE 2020 FISCAL
YEAR, WE HAD $60.8 MILLION IN
REVENUE STABILIZATION FUND AND
$66.9 MILLION IN THE EMERGENCY
FUND BASED ON THE POLICIE THAT
WERE IN PLACE AT THAT TIME FOR
THE BALANCE IN RESERVES OF $128
MILLION.
YOU IT SEE.
I DON'T GO INTO DETAIL ABOUT
THE SPECIFIC CHANGES.
THROUGH 2020 REVISED BUDGET
ADJUSTMENTS TAKEN PLACE AS
COUNCIL AND MAYOR REBUDGETTED
FOR COVID-19 AND IMPACTS ON
REVENUES, A NUMBER OF MEASURES
ADOPTED IN 2020 THAT DEPLOYED A
TOTAL OF ABOUT $3 MILLION OF
RESERVES, AND 2021 ADOPTED
BUDGET USED $39 MILLION IN
RESERVES, TAKING RESERVES DOWN
TO A LEVEL OF APPROXIMATELY $6
MILLION IN THE REVENUE
STABILIZATION FUND, AND
APPROXIMATELY $33 MILLION IN
THE EMERGENCY FUND.
THE 2022 PROPOSED BUDGET
INCLUDES DEPOSITS TO EACH FUND,
WHICH I WILL COVER IN THE NEXT
SLIDE.
>> COUNCILMEMBER HERBOLD,
PLEASE GO AHEAD.
>> ARE WE GOING TO GET FURTHER
INTO THE ISSUES THAT THE
CENTRAL STAFF MEMO RAISED ABOUT
THE PROPOSED CONTRIBUTIONS TO
THE REVENUE STABILIZATION FUND
COMPARED TO WHAT CURRENT CITY
POLICY IS VERSES PROPOSED NEW
POLICY?
>> YES, ABSOLUTELY WILL.
I WILL HOLD MY QUESTION.
>> IF I COULD NOTE FOR THE
FOLKS FOLLOWING ALONG AT HOME.
AS WE WERE PREPARING TOM'S
TALKING POINTS FOR THE
PRESENTATION, WE REALIZE THIS
WOULD MAKE MORE SENSE BEFORE
SLIDE SIX, AND A COUPLE OF
TABLES WILL SHOW UP SLIGHTLY
OUT OF ORDER FROM THE
PRESENTATION ON THE POSTED
AGENDA.
THE NUMBERS ARE STILL CORRECT
ON THE SCREEN.
IT WAS SLIDE SEVEN, BUT IT'S
COMING BEFORE SLIDE SIX.
LATER IN THE PRESENTATION WE
MOVED SLIDES 11 AND 12 BEFORE
10 BECAUSE IT PROVIDES THE
DETAILS, AND TOM WILL SPEAK TO
THAT, AND ALL GO TOGETHER, BUT
WE WANTED TO NOTE THAT FOR
PEOPLE FOLLOWING ALONG AT HOME,
AND THIS IS SLIDE SEVEN, AND
THEN MOVING TO SIX, AND I DON'T
WANT PEOPLE TO GET CONFUSED.
>> OKAY, SO THE SLIDE NUMBER
WILL STAY THE SAME, SO THAT, OF
COURSE WILL ALIGN WITH WHATEVER
SLIDE YOU'RE PROJECTING.
THERE'S OTHER COUNCILMEMBERS
WITH NOTES CORRESPONDING TO THE
SLIDE NUMBERS.
GOO D QUESTION COUNCILMEMBER
HERBOLD.
WE WILL COME BACK TO YOU TO GET
THE QUESTION FULLY ADDRESSED IN
A MINUTE.
>> THANK YOU FOR POINTING THAT
OUT, ALY ABOUT THE SLIDE
SWITCH.
THIS SLIDE ENCOMPASSES
INFORMATION ON THE MEMO ON PAGE
NINE OF THE MEMO.
AS COUNCILMEMBER HERBOLD
HELPFULLY POINTED OUT OR LED
INTO, THERE'S A PROPOSED POLICY
CHANGE THAT SUPPORTS THE
MAYOR'S PLANNED DEPOSITS.
FIRST TO PROVIDE INFORMATION
ABOUT WHAT THE CURRENT POLICY
WOULD REQUIRE, CURRENT POLICY
WOULD REQUIRE THE CITY DEPOSITS
0.25% OF GENERAL FUND TAX
REVENUES INTO THE REVENUE
STABILIZATION FUND IN THE FIRST
YEAR REVENUES BEGIN GROWING,
AND THAT WOULD BE ABOUT $3.1
MILLION BASED ON THE CURRENT
POLICY, SO
A DEPOSIT INTO THE RESERVE
REVENUE STABILIZATION FUND OF
$3.1 MILLION.
PROTHE PERSPECTIVE OF THE
EMERGENCY FUND, THE POLICY DOES
NOT ALLOW FOR A SIMILAR
SEQUENCED REPAYMENT STRUCTURE.
IT ESSENTIALLY SAYS IN THE YEAR
FOLLOWING A USE OF THE
EMERGENCY FUND, THE BALANCE
SHALL BE REPLENISHED TO THE
FULL POLICY LEVEL.
FOR THE CASE OF THE EMERGENCY
FUND, THE POLICY LEVEL IS
$60,000 OR $60 MILLION,
INFLATED BY GROWTH IN THE CPIU
FOR THE SEATTLE AREA, AND THAT
WOULD BE A HIGHER AMOUNT, AND
IT WOULD BE A TOTAL -- REQUIRE
A TOTAL DEPOSIT TO THE
EMERGENCY FUND OF $37.5 MILLION
IN THE 2022 BUDGET.
SO IN ESSENCE, THE CURRENT
POLICIES WOULD REQUIRE A $40.6
MILLION DEPOSIT INTO OUR
COMBINED RESERVES, WHEREAS, THE
MAYOR'S PROPOSED BUDGET
DEPOSITS $25 MILLION.
AS FAR AS THE DETAILS THE
EMERGENCY FUND, PROPOSED POLICY
CHANGE WOULD CHANGE IT INTO A
SEQUENCED PROCESS ALLOWING FOR
REPLENISHMENT OVER FOUR OR FIVE
YEARS.
THIS YEAR, THE PROPOSED 2020
YEAR OR 2022 YEAR PLUS FOUR
ADDITIONAL YEARS, AND THEN THAT
IS THE $10 MILLION INCLUDED IN
THE PROPOSED BUDGET.
THE REVENUE STABILIZATION FUND,
AND THE PROPOSED BUDGET IS
SIMPLY DEPOSITING MORE INTO THE
FUND THAN IS PURELY REQUIRED BY
LAW, AND CURRENT CITY
ORDINANCE.
THERE IS NO POLICY CHANGE THAT
IS PROPOSED.
THERE IS NOTHING THAT PREVENTS
THE CITY FROM DEPOSITING THE
HIGHER AMOUNT IN EITHER OF THE
RESERVES, UP TO A CURRENT
MAXIMUM BALANCE AMOUNT ALLOWED
IN THE STABILIZATION FUND, BUT
THAT DOES NOT POSE CONSTRAINTS
ON THE CURRENT BUDGET.
SO WHEN THE $25 MILLION FROM
THE -- OR ASSUMING THE POLICY
CHANGE IS IN PLACE, THE MAYOR'S
BUDGET WOULD PLACE $25 MILLION
FROM THE GENERAL FUND INTO THE
FISCAL RESERVES, AND IT WOULD
BRING THE RUNNING TALLY OF THE
BASELINE TO NEGATIVE $75
MILLION IN 2022.
>> PLEASE GO AHEAD.
>> I'M WONDERING WHETHER OR NOT
CENTRAL STAFF HAD A CHANCE TO
CHECK WITH DIRECTOR NOBLE SINCE
HE CAME AND VISITED US A COUPLE
OF WEEKS AGO TO GIVE THE
PRESENTATION ON THE MAYOR'S
PROPOSED BUDGET.
THE REASON WHY I ASK,
PARTICULAR TO THIS QUESTION
WHETHER TALKING ABOUT THE
MAYOR'S PROPOSED BUDGET
CONTRIBUTION TO THE TWO FUNDS,
THE IMPRESSION I RECEIVED IS
THAT THE MAYOR'S BUDGET WAS
PROPOSING TO COMMIT MORE THAN
WHAT WAS LEGALLY REQUIRED UNDER
CURRENT POLICY, AND I'M JUST
REALLY CURIOUS AS TO WHAT WAS
INTENDED BY THAT PARTICULAR
MESSAGE, IF ANYONE HAD A CHANCE
TO FACT CHECK AFTER THE
PRESENTATION.
>> SURE.
>> VICE CHAIR HERBOLD, I HAVE
HAD SOME CONVERSATIONS, AND I
WOULD SAY THIS IS JUST
GENERALLY A DIFFERENT WAY THAT
CENTRAL STAFF VERSES THE
EXECUTIVE APPROACHES THE
DISCUSSION OF THE BUDGET AND
WHY WE UNPACK IT USING
COUNCIL'S POLICY LENS.
THE PROPOSED BUDGET FROM THE
EXECUTIVE'S POSITION IS
ASSUMING ADOPTION OF ALL THE
LEGISLATION THAT IS TRANSMITTED
WITH THE BUDGET, SO THEY ARE
NOT REQUIRED TO SUBMIT TO THE
COUNCIL A CURRENT LAW BUDGET.
THEIR PROPOSED BUDGET IS
ASSUMING COUNCIL APPROVES, SO
THAT, YOU KNOW, THE LANGUAGE
MAY NOT HAVE BEEN AS PRECISE IN
THEIR RESPONSE TO THE
QUESTIONS, BUT THEIR PROPOSAL
IS, IN FACT, ASSUMING COUNCIL
APPROVES THE POLICY CHANGE,
DEPOSITING MORE MONEY THAN
REQUIRED BY LAW INTO THE FISCAL
RESERVES.
OUR PERSPECTIVE IS WE FIRST
NEED TO REPRESENT WHAT WOULD BE
REQUIRED TODAY, SO YOU WOULD
KNOW WHETHER OR NOT YOU WANT TO
APPROVE THAT POLICY CHANGE
MOVING FORWARD.
IT'S PART OF WHAT WE DO HERE ON
CENTRAL STAFF.
THAT IS PRESENT THE PROPOSED
BUDGET USING THE POLICY FRAME,
AND THAT IS THE DISTINCTION,
BUT I DON'T THINK THERE'S
DISAGREEMENT ABOUT WHAT CURRENT
LAW WOULD HAVE REQUIRED.
>> THANK YOU.
I THOUGHT I WAS ASKING THE
QUESTION ABOUT WHAT WOULD BE
REQUIRED UNDER CURRENT LAW
BECAUSE I DIDN'T GET NO ABOUT
THE NEW PROPOSED LAW, BUT I
APPRECIATE UNDERSTANDING THE
DIFFERENT PERSPECTIVE WE BRING
TO UNPACKING THE BUDGET.
>> I THINK IT'S A REALLY
EXCELLENT QUESTION, VICE CHAIR
HERBOLD.
THANK YOU FOR PUTTING IT OUT
THERE.
I THINK IT WOULD BE MOST FOLKS
UNDERSTANDING THE PROPOSED
BUDGET WOULD NEED TO COME DOWN
COMPLYING WITH CURRENT LAW.
AS THE MEMO OUTLINED AND WAS
TOUCHED ON IN EARLIER
PRESENTATIONS, AND REALLY
EXPOSED IN THE MEMO FROM
CENTRAL STAFF.
THE LEGISLATION THAT HAS
ACCOMPANIED THE PROPOSED BUDGET
IS A VERY DIFFERENT POLICY
CHOICE, AND SO, I WOULD WANT TO
LIFT UP THE LANGUAGE ON TOP OF
PAGE NINE OF THE MEMO HERE, AND
IT SAYS THE 2022 PROPOSED
BUDGET PACKAGE INCLUDES THE
BUDGET LEGISLATION THAT WOULD
CHANGE THE JUMP START FUND
POLICIES, AND IT GOES ON TO SAY
THE PROPOSED BUDGET LEGISLATION
WOULD COMPLETELY RESCIND THE
SPENDING PLAN FOR THE 2023 AND
BEYOND JUMPSTART SPEND PLAN,
ALLOWING FOR ONGOING USE OF THE
PAYROLL EXPENSE TAX REVENUES TO
SUPPORT THE GENERAL FUND FOR
USES THAT ARE INCONSISTENT WITH
THE SPENDING PLAN ESTABLISHED
WHEN THE PAYROLL EXPENSE TAX
WAS AUTHORIZED BY COUNCIL.
THAT TO ME IS THE CRUX OF THE
DIFFERENCE IN ANALYSIS IN HOW
THE GAP WAS CLOSED.
I WANT TO ASK THE QUESTION THAT
LEADS INTO THAT.
I GUESS, TO BE CLEAR, WHAT WE
ARE SEEING HERE, FROM YOUR
PRESENTATION, THUS FAR, IS THAT
ABSENT, NONGENERAL FUND
SERVICES, WE WOULD BE $50
MILLION SHORT FOR NEXT YEAR'S
BUDGET, CORRECT?
>> THAT'S CORRECT.
>> ON TOP OF THAT, WITH THE
ADDITIONAL SPENDING THAT HAS
BEEN PROPOSED IN THIS BUDGET,
WE SEE THAT GAP EVEN GROW
FURTHER TO 75 MILLION?
IS THAT CORRECT?
>> YES.
THAT IS CORRECT.
YOU WILL SEE WITH THE
PROGRESSIVE SLIDES, THIS IS
JUST ONE STEP IN THAT ANALYSIS,
BUT THAT IS AN ACCURATE
STATEMENT.
>> YOU KNOW, I WOULD JUST ADD
IN, THIS IS OUR SORT OF
RECONSTRUCTION OF THE PROPOSED
BUDGET, SO WE ALWAYS START WITH
SORT OF BASELINE EXPENDITURES
AND REVENUES, AND THEN LAYER IN
THE SORT OF NEW SPENDING OR
CONTRIBUTIONS TO EMERGENCY
FUNDS, AND THEN SHOW HOW THEY
ARE ADDRESSING THE GAP, AND IN
THIS CASE, YOU WILL SEE, I
DON'T THINK I'M STEALING THE
PUNCH LINE, BUT THE JUMP START
FUND COMES IN TO FILL THE GAP.
SO, THAT IS SORT OF HOW WE
BUILD IT START TO FINISH, HOW
BIG THE
GAP WOULD BE, BUT FOR OTHER
SUPPLEMENTS TO THE GENERAL
FUND.
>> SO THAT'S A GOOD DISCUSSION
TO LAUNCH INTO -- NOT TO GO
FULL BORE INTO THE JUMPSTART
FUND.
IT'S IN LATER PORTIONS OF THE
PRESENTATION.
BECAUSE OF THE GENERAL FUND'S
RELIANCE ON THE REVENUE FROM
THE JUMPSTART FUND AND A
PROPOSED POLICY CHANGE THAT
WOULD INCREASE THE RELIANCE TO
A HIGHER AMOUNT, I THOUGHT IT
WAS USEFUL TO STOP OR TO PLACE
THIS TABLE IN THE PRESENTATION
AND MAKE A MEMO TO REPOSITION
WHAT WAS ADOPTED BY THE CITY
COUNCIL.
WITH ORDINANCE 126-393 THAT
CREATED THE JUMPSTART FUND AND
SPENDING PLAN.
A LITTLE HISTORY, COVERED IN
THE MEMO.
I DON'T HAVE DETAILED SLIDES,
BUT TO PROVIDE THE TRACKING TO
HOW WE GOT HERE.
IN JULY OF 2020, CITY COUNCIL
PASSED A PROGRESSIVE PAYROLL
EXPENSE TAX ON BUSINESS PAYROLL
OR BUSINESSES WITH BUSINESS
PAYROLLS IN THE CITY OF
SEATTLE, AND ACCOMPANYING THAT
TAX LEGISLATION THERE WAS AN
ORDINANCE AND RESOLUTION THAT
PUT IN PLACE A SET OF SPENDING
CRITERIA WITH PERCENTAGES WHAT
THE NEW REVENUES WERE SUPPOSED
TO BE USED FOR.
IN THE 2021 BUDGET, GIVEN THE
REVENUE PRESSURES CAUSED BY
COVID RESPONSE AND THE
RECESSION THAT RESULTED, WAS
THERE SOME ALLIANCE FOR
JUMPSTART FUND PAYROLL TAX FUND
SUPPORTING THE GENERAL FUND IN
THAT BUDGET, HOWEVER, IT WAS
NOT ORIGINALLY CONTEMPLATED
BEYOND 2021.
THE ORDINANCE RESOLUTION OF THE
SPENDING PLANS IN 2020,
REQUESTED AN IMPLEMENTATION
PLAN OF HOW PAYROLL EXPENSE TAX
REVENUES WOULD BE USED IN
FUTURE BUDGETS AND HOW THEY
WERE GOING TO BE THE SPENDING
PLAN THAT WAS PUT IN PLACE BY
COUNCIL, AND THERE WAS NO
IMPLEMENTATION PLAN RECEIVED.
IT WAS EXPECTED IN JUNE OF '21.
NO IMPLEMENTATION PLAN WAS
RECEIVED, AND COUNCIL PASSED
ORDINANCE 126-393, CREATING THE
JUMPSTART FUND AND CREATED THE
ORDINANCE OF THE SPENDING PLAN
FROM THE PRIOR ORDINANCE AND
RESOLUTIONS IN 2020.
SO WITH THE BUDGET PROPOSAL, WE
HAVE THE DE FACTO SPENDING PLAN
FROM THE EXECUTIVE.
THERE WILL BE POINTS IN THE
PRESENTATION COMPARING THE
PROPOSAL AGAINST THIS, AND IT
IS THE TAKING OF THE REVENUE
PROJECTION AND RUNNING THROUGH
THE ORDINANCE REQUIREMENTS TO
DETERMINE HOW MUCH WILL GO TO
THE GENERAL FUND AND HOW MUCH
WILL GO FOR THE VARIOUS PROGRAM
AREAS INCLUDED IN THE JUMPSTART
FUNDING SPENDING PLAN.
AT THIS POINT THE KEY PIECE OF
INFORMATION IS SECTION TWO OF
THIS TABLE, COMPARING FROM THE
JUMPSTART ORDINANCE THE
PRECOVID REVENUE BASELINE, AND
THIS IS ESSENTIALLY THE
BASELINE FOR REVENUE FOR 2022
BASED ON FORECASTS DONE PRIOR
TO THE COVID-19 EMERGENCY.
IT WAS HOW MUCH REVENUE WE
EXPECTED TO GET PRECOVID.
THE LINE BELOW THAT, THE
PROPOSED REVENUE FORECAST FROM
CBO FOR THE SAME RESOURCES, AND
THAT DETERMINES HOW MUCH OF THE
GENERAL FUND CAN BE BACK FILLED
FROM THE JUMPSTART FUND ON THE
ORDINANCE ADOPTED.
I WOULD PAUSE TO SAY AS I
MENTIONED IN THE ORIGINAL
ORDINANCE AND RESOLUTION FROM
JULY OF 2020, IT DID NOT
CONTEMPLATE THE ADDITIONAL BACK
FILL.
IT WAS AN ALLOWANCE ADDED IN
THE JUMPSTART FUND ORDINANCE
ADOPTED THIS YEAR, AND WITH THE
UNDERSTANDING THERE MAY STILL
BE LINGERING EFFECTS FROM THE
ECONOMIC IMPACTS LOCALLY AND
NATIONALLY FROM THE COVID-19
RECESSION.
THE JUMP START FUND, ORIGINAL
PLAN WAS ADJUSTED TO
ACCOMMODATE THAT AND PROVIDE
$85 MILLION BACKFILL TO THE
GENERAL FUND.
THE REMAINING COMPONENTS, I
WILL TALK ABOUT IT IN THE
CONTEXT OF THE JUMPSTART FUND
LATER.
AND SO THIS SLIDE JUST ADDS THE
$85 MILLION OF BACK FILL AMOUNT
INTO THE RUNNING CALCULATION OF
THE BASELINE BALANCE IN THE
GENERAL FUND.
AS YOU CAN SEE, VERY CLEARLY,
THE -- I BELIEVE IT WAS $76
MILLION OR SO DEFICIT, PRIOR TO
THE BACK FILL, WITH THE JUMP
START SUPPORT, AND IT PROVIDED
IN THE SPENDING PLAN IN THE
JUMP START POLICY, NOW A $9.4
MILLION SURPLUS, AND SO, IN
ESSENCE, THE AMOUNT OF BACK
FILL ALLOWED IN THE BACK START
SPENDING PLAN SERVED THE
PURPOSE OF BACK FILLING THE
ONGOING AS MUCH ASS ADOPTED IN
THE PRIOR BUDGET AND REPLACING
OR SUPPORTING THE REVENUES THAT
HAVE NOT FULLY RECOVERED.
AND SO --
>> TOM, AS YOU GO ALONG, COULD
YOU TELL US WHICH PAGE IN THE
MEMO YOUR SLIDES CORRESPOND
WITH SO FOLKS CAN FOLLOW ALONG?
>> WILL DO.
>> SO NOW I BELIEVE THIS IS
PAGE 11 OF THE MEMO.
WE ARE GETTING INTO MORE POLICY-
FOCUSED SPENDING.
THE PRIOR AMOUNTS OF SPENDING
HAVE BEEN MORE TECHNICAL AND
CONTINUATION OF BASELINE.
WITH REGARDS TO THE EQUITABLE
COMMUNITIES INITIATIVE, AGAIN,
HISTORICAL REFERENCE, IT IS
IMPORTANT TO OFFER.
IT WAS ORIGINALLY PROPOSED BY
THE MAYOR AT A LEVEL OF $100
MILLION IN FINANCE GENERAL
RESERVE.
GIVEN THAT THE BUDGET PROPOSAL
SUBMITTED BY THE MAYOR IN 2021
INCLUDED NOT ONLY SUPPORT FROM
THE JUMPSTART OR PAYROLL
EXPENSE TAX, BUT SIGNIFICANT
CONTRIBUTIONS FROM THE RESERVE
ONLY ONE-TIME IN NATURE AND
OTHER ONE-TIME FEDERAL
ASSISTANCE, COUNCIL REPURPOSED
THE $100 MILLION ALLOCATION IN
THE BUDGET, AND IT WAS ONGOING,
PROPOSED AS ONGOING INTO A SET
OF ONE-TIME INVESTMENTS IN THE
BUDGET.
NOTABLE AMONGST THOSE, LISTED
ON PAGE 11 OF THE MEMO.
PREPISPATOY BUDGET.
ECI FROM NOW ON.
$18MILLION PURPOSED WITH THE
CUTS FROM THE SEATTLE POLICE
DEPARTMENT BUDGET TO PROVIDE A
$30 MILLION ONE-TIME ALLOCATION
FOR THE BUDGETING IN 2021.
THERE WAS A $30 MILLION
ALLOCATION FOR THE STRATEGIC
INVESTMENT FUND, ORIGINALLY IN
THE 2020 BUDGET, AND IT'S PART
OF THE MAYOR'S PROPOSAL,
CUTTING THAT ORIGINAL $30
MILLION TO THE STRATEGIC
INVESTMENT FUND, AND THEN JUST
ROLLED IT INTO THE $100 MILLION
PROPOSAL FROM THE
MAYOR'S BUDGET.
COUNCIL BASICALLY REPLACED THAT
STRATEGIC INVESTMENT FUND FROM
2020 AND PUT IT BACK IN PLACE
IN 2021 AS A ONE-TIME INVEST.
ONE-TIME INVESTMENTS FOR
COMMUNITY-LED SAFETY PROJECTS
IN HSD, HUMAN SERVICES
DEPARTMENT, AND THERE WAS A
TRANSFER TO THE EMERGENCY FUND
OF $10.3 MILLION, ALSO ONE TIME
PAIRED WITH GENERAL FUND
RESOURCES TO GROSS UP TO $33.7
MILLION, AND THERE WERE AMOUNTS
FOR OCR ALTERNATIVES AND OFFICE
ENFORCEABLE RIGHTS
ALTERNATIVES, AND FUNDINGS FOR
ORGANIZATIONS PURSUING THE
ALTERNATIVES FROM HARMS FROM
THE CRIMINAL LEGAL SYSTEM, AND
HALF A MILLION DOLLARS FOR
RESTORATIVE JUSTICE PILOT.
THE REMAINDER AFTER THE
ADJUSTMENTS LEFT $29.9 MILLION
FOR DCI AS A ONE TIME
INVESTMENT IN 2021.
THE CITY COUNCIL PLACED A
PROVISO ON THOSE FUNDS OR A
COUPLE OF PROVISOS.
THE CRITICAL ONE FOR THE
ANALYSIS IS A PROVISO THAT
REQUESTED THE TASK FORCE
CREATED BY ECI WOULD COME TO
COUNCIL AND PRESENT A PLAN FOR
THE USE OF THOSE 2021 MONEYS,
AND THEN THE COUNCIL COULD LIFT
THE PROVISO, ALLOWING THE
MONEYS TO BE SPENT FROM THE
CITY BUDGET.
THE ORDINANCE 126.401 SHOWN
HERE WAS ESSENTIALLY THE FORM
OF THE COUNCIL AUTHORIZATION TO
LIFT THE PROVISO ON THE FUNDS
IN THE BUDGET, AND SO WHAT YOU
CAN SEE HERE COMPARES NOW, AND
NOW SHIFTING GEARS INTO THE
2020 PROPOSED BUDGET SHOWS THE
AMOUNTS OF THE ONE-TIME
APPROPRIATIONS FOR ECI, AND
THEN WHAT THE SIMILAR COROLLARY
AMOUNTS ARE IN THE BUDGET.
ONE KEY DISTINCTION OF THE
2021, ORDINANCE 12461,
AUTHORIZE THE EXPENDITURE OF
THE SPENDING, AND THEN THAT'S
JUST THE BUDGET SPEAK FOR
MEANING THOSE MONEYS WILL GO GO
AWAY UNTIL FULLY SPENT.
IF THERE'S $30 MILLION, THAT
BUDGET WILL REMAIN IN PLACE
UNTIL IT'S FULLY SPENT FROM THE
BUDGET OR OTHERWISE LAPSES.
SO THE APPROPRIATIONS AND ONE-
TIME IN 2021 NOW PROPOSED AS
ONGOING APPROPRIATIONS FOR THE
2022 BUDGET, AND HOWEVER, THE
ORIGINAL ALLOCATION FOR '21 WAS
COMPLETELY 100% GENERAL FUND,
AND YOU WILL SEE IN THIS TABLE,
THERE NOW THE PROPOSED BUDGET
INCLUDES APPROXIMATELY $12.8
MILLION IN THE GENERAL FUND,
AND APPROXIMATELY $17.2
MILLION IN THE JUMPSTAT FUND.
SO THIS IS THE ECI LOOK AT HOW
JUMPSTART FUND MONEYS ARE USED,
AND YOU CAN SEE SIMILAR
PROGRAMS IN THE JUMPSTART
FUNDING SPENDING PLAN, AND
BECAUSE THEY ARE DUALLY
PURPOSED TO MEET ECI TASK FORCE
RECOMMENDATIONS, AS WELL AS
JUMPSTART FUNDING, SPENDING
PRIORITIES.
>> I THINK IT'S JUST IMPORTANT
TO NOTE HERE, AND WE WILL KEEP
COMING BACK TO THIS POINT AND
SORT OF THE HIGH-LEVEL
QUESTIONS DIRECTOR HANDY RAISED
IN HER INTRODUCTORY REMARKS
TODAY.
WHILE THE PROPOSED TASK FORCE
INVESTMENTS ARE SPLIT IN THE
PROPOSED BUDGET BETWEEN GENERAL
FUND AND THE JUMPSTART FUND,
BASED ON OUR ANALYSIS TO DATE,
THESE PROPOSEDGOING
EXPENDITURES WILL REQUIRE
ONGOING RELIANCE ON THE
JUMPSTART FUND MOVING FORWARD.
IF COUNCIL AGREES WITH THIS
PROPOSAL AND APPROVES THIS
ONGOING SPENDING, ABSENT
ANOTHER REVENUE SOURCE OR
REDUCTIONS IN OTHER AREAS OF
THE CITY BUDGET T WILL BE
CONTINUED RELIANCE ON THE
JUMPSTART FUND, AND WE ARE
GOING TO KEEP SAYING THAT OVER
AND OVER AGAIN OVER THE NEXT
THREE DAYS.
>> THANK YOU, ALY.
THAT'S A GOOD REMINDER.
ORIGINALLY PROPOSED AND
INDICATES IN THE CBO
PRESENTATION ON THE ITEM, IT
WAS PROPOSED THE TASK FORCE
WOULD IDENTIFY NEW PROGRESSIVE
REVENUE SOURCE TO FUND THE
INVESTMENTS, AND AS OF NOW
THERE'S NOT BEEN AN ADDITIONAL
REVENUE SOURCE IDENTIFIED,
HENCE THE ADDITIONAL RELIANCE
ON THE FUND IN THE 2022 BUDGET.
>> THANK YOU, COUNCILMEMBER
HERBOLD.
>> THANK YOU.
>> JUST TO TRY TO DIAL DOWN A
LITTLE BIT ON THE EXPECTATIONS,
TOM, I HEARD YOU SAY THAT THE
EXPECTATION WAS THAT THE TASK
FORCE WOULD MAKE A
RECOMMENDATION FOR AN ONGOING
REVENUE SOURCE, AND THE CENTRAL
STAFF MEMO QUOTES THE MAYOR
DISCUSSED PROPOSING AN EQUITY
FUND OR NEW PROPOSED REVENUE
FOR SUSTAINED FUNDING FOR THE
COMMITMENT TO THE FUTURE YEARS.
I RECOGNIZE THE INTENTION WOULD
BE AN ONGOING REVENUE OF SOME
SORT, AND SOURCE OF SOME SORT,
SO WE COULD SUSTAIN THESE
INVESTMENTS.
I HAVE MET WITH THE ECI TASK
FORCE, AND I'M SURE OTHER
COUNCILMEMBERS HAVE AS WELL.
THEY HAVE DECLINED TO IDENTIFY
AN ONGOING REVENUE SOURCE, AND
IT'S MY UNDERSTANDING FROM
READING THE MEMO THAT IT WAS
THE MAYOR WHO HAD INTENDED TO
PROPOSE AN ONGOING REVENUE
SOURCE.
JUST WANT TO CLARIFY.
I WANT TO ASK YOU TO CLARIFY
THAT IF YOU COULD.
THANK YOU.
>> YEAH, THANK YOU.
THANK YOU VICE CHAIR HERBOLD.
THAT IS ACCURATE.
THE QUOTE FROM THE SLIDE IS THE
KIND OF RECORD ON THE ITEM.
IT'S PERHAPS INFORMAL
COMMENTARY FOR MY COMMENTS.
SO FOR THE RECORD, THAT, I
BELIEVE WAS PLACED ON THE
EXECUTIVE BRANCH TO COME UP
WITH THE REVENUE BACKSTOP.
>> AND DO WE HAVE ANY
INFORMATION ABOUT WHY THAT
NEVER OCCURRED?
WHY IT WAS NEVER A PROPOSAL FOR
THE ONGOING REVENUE SOURCE TO
FUND THIS ONGOING COMMITMENT?
RATHER THAN USING JUMPSTART
THAT ALREADY HAD A SPEND PLAN
AND LEGISLATIVE OBJECTIVES.
>> NO, VICE CHAIR, I HAVE NOT
HEARD ANY FURTHER INFORMATION
ON THAT.
>> YEAH, I WOULD JUST CHIME IN
TO SAY I'M ALSO NOT AWARE OF
THE CHOICE BY THE EXECUTIVE.
>> THANK YOU VERY MUCH VICE
CHAIR.
I APPRECIATE THE SLIDES HERE,
AND I WOULD NOTE ON PAGE 14 OF
THE MEMO, YOU CAN SEE THE TWO
SLIDES THAT TOM SHOWED FROM THE
CHART THAT SHOWS THE
INVESTMENTS IN THE TASK FORCE
RECOMMENDATIONS, AND SIDE BY
SIDE, TO SEE THE TOTALING OF
$30 MILLION FROM HOW THE
RECOMMENDATIONS WE RECEIVED
FROM THE TASK FORCE DO GET TO
30 MILLION.
I WILL PUT OUT THERE,
COLLEAGUES, I, TOO, HAVE HAD
CONVERSATIONS WITH THE FOLKS
FROM TASK FORCE MEMBERS AND THE
BUDGETING WORK, AND THERE IS
ONGOING INTEREST IN MAKING SURE
WE ARE MAINTAINING 30 MILLION
SO THE IDENTIFIED PRIORITIES
GET THE FUNDING NEEDED.
I WANT TO MAKE SURE, THOUGH,
THEY FULLY UNDERSTAND THE
UNDERSPEND.
WHAT TOM NOTED IN THE MEMO AND
NOW AS WELL, THERE'S THE
ABILITY FOR THOSE DOLLARS TO
CARRY FORWARD IF THEY HAVE NOT
BEEN USED.
GIVEN HOW LATE SOME OF THE
CONTRACTS WENT OUT LAST YEAR,
WE KNOW THERE'S A SIGNIFICANT
OF THE $30 MILLION UNDERSPENT
IN 2021, AND I WOULD LIKE TO
SEE THAT REFLECTED IN THE 2022
BUDGET TO TRUE UP THE
INVESTMENTS IN THE $30 MILLION
AS COMMITTED.
THAT SAID, I ALSO THINK IT IS
IMPORTANT FOR THERE TO BE
SUSTAINED REVENUE FOR THESE
IMPORTANT INVESTMENTS.
IN SOME WAYS, THERE'S CROSS
OVER WITH SOME OF THE
PRIORITIES IN JUMPSTART, BUT IF
THE INITIAL INTENTION WAS TO
MAKE SURE THERE WAS A SUSTAINED
SOLE SOURCE OF REVENUE, IT'S AN
IMPORTANT CONVERSATION FOR US
TO ENCOURAGE ON THE POLICY
SIDE, AND KEEPING
THE TASK FORCE AND THE
BUDGETING INVESTMENTS AT $30
MILLION, THAT'S AN IMPORTANT
INVESTMENT, I THINK, GOING
FORWARD, AND I WANT TO MAKE
SURE IT'S REFLECT IN THE
BUDGET.
COUNCILMEMBER JUAREZ, I SEE
YOUR HAND AS WELL.
I WAS GOING TO START WITH A
THANK YOU FOR BEING ON THE
COUNCIL REPRESENTATIVE ON THE
TASK FORCE, BUT THANK YOU FOR
YOUR WORK AND FOR THE WORK OF
THE TASK FORCE.
I WILL TURN TO YOU FOR YOUR
NEXT COMMENTS.
>> I WANT TO NOTE SO WE CAN
REMEMBER WHAT HAPPENED IN JULY
AND HOW THIS GOT PASSED.
ALL OF THE CREDIT GOES TO BLACK
LEADERS FOR ECI.
ORIGINALLY ECI WAS AS YOU
REMEMBER, 100 MILLION AND WE
CUT 70 AND MADE IT 30.
WE CAN DO THE BUDGETING AND ECI
TOGETHER.
IT MAKES THE BLACK COMMUNITY
STRONGER, LEADERSHIP STRONGER,
AND IT EMPOWERS THEM TO DO THE
THINGS YOU NEED.
YOU DON'T HAVE TO HAVE ONE
PROGRAM.
WE CAN DO TWO.
THEY ARE NOT COMPETING.
THEY HAVE OVERLAPPED AND DOVE
TAILED QUITE NICELY.
I'M VERY HAPPY TO HEAR THAT.
I KNOW THEY HAVE MET THE ECI
TASK FORCE MEMBERS HAVE MET
WITH COUNCILMEMBERS
INDIVIDUALLY.
IT'S GOOD THAT JUMPSTART CAN
FUND THE ECI AT 30 MILLION FOR
NOW, AND HOLD ON TO THE MONEY
UNTIL THEY CAN SPEND IT, AND I
GUESS THIS TIME NEXT YEAR WE
WILL LOOK AT IF IT'S
SUSTAINABLE, AND THAT'S
PROBABLY FOR NEXT YEAR, IF
THAT'S A FAIR STATEMENT TO
MAKE, SO THANK YOU.
>> THANK YOU.
I AM -- I DO NEED TO MAKE SURE
I ORIENT US TO THE CONVERSATION
AROUND THE 100 MILLION.
IT WASN'T A $70 MILLION CUT,
AND I DO --
>> OKAY.
>> I THINK IT'S THE INFORMATION
FOR SLIDE 12.
IT GETS TO YOUR POINT.
NOT SLIDE 12, EXCUSE ME.
PAGE 12 OF THE MEMO.
I THINK THERE'S A WAY TO SHOW
EXACTLY WHAT YOU MENTIONED
COUNCILMEMBER JUAREZ.
THESE INVESTMENTS CAN COEXIST.
IT WAS NOT A REDUCTION OR A CUT
TO THE TASK FORCE, IF THE TASK
FORCE WAS BRAND NEW AND
PROPOSED LAST YEAR, WHAT WE DID
WAS MAINTAIN THE COMMITMENT TO
THE MERCIER MEGA INVESTMENTS
FOR THE STRATEGIC INVESTMENT
FUND
SPECIFICALLY FOR THE
COMMUNITIES.
WE ALLOCATED 30 MILLION TO
CREATE HARMONY BETWEEN THE
BIPOC INVESTMENTS FOR THE
PARTICPATOY BUDGETING TO THE
TUNE OF $10 MILLION, GETTING US
TO $100 MILLION IF THERE WAS AT
$100 MILLION THRESHOLD, THE
LINE DRAWN IN THE SAND, BUT WE
DID ADDITIONAL INVESTMENTS IN
OFFICE OF CIVIL RIGHTS
ALTERNATIVES, TRANSFERRED MONEY
TO MAKE SURE THERE WAS FUNDING
FOR EMERGENCY FUNDS SO OUR
COMMUNITIES ARE SPECIFICALLY
SUPPORTED.
I WANT TO MAKE SURE THAT FOLKS
DON'T TAKE AWAY THERE WAS A CUT
TO THE TASK FORCE IN DOLLARS,
INSTEAD IT WAS EXACTLY WHAT YOU
MENTIONED, AND IT WAS SHOWING
THAT THESE INVESTMENTS CAN
EXIST SIMULTANEOUS, AND THEY
ARE ALL NEEDED TO CREATE A MORE
STABLE
AND HEALTHY AND SAFE COMMUNITY.
GREAT.
SO FOR FOLKS WHO WANT TO SEE
THE BULLETS THERE, THAT IS ALSO
ON PAGE 12 OF THE MEMO.
>> CHAIR MOSQUEDA, I WANT TO
RESPOND A LITTLE AS WELL TO
COUNCILMEMBER JUAREZ'S
STATEMENT IN TERMS OF THE
DECISION THIS YEAR VERSES THE
DECISION NEXT YEAR.
I JUST WANT TO NOTE AS WE WILL
KEEP RETURNING TO THE QUESTION
OF SUSTAINABILITY, IF THE
COUNCIL ACCEPTED THE MAYOR'S
PROPOSAL AS TRANSMITTED, IT
WILL BE VERY DIFFICULT TO MAKE
A DIFFERENT DECISION NEXT YEAR
TO REDUCE THE SPENDING IN THESE
AREAS IF IT'S APPROVED AS AN
ONGOING EXPENDITURE NOW.
PUT ANOTHER WAY, IF AS
PROPOSED, IF THE COUNCIL
ADOPTED THE BUDGET PROPOSED,
ABSENT OF ANOTHER REVENUE
SOURCE T WILL RELY ON THE
JUMPSTART FUND.
I THINK IT'S IMPORTANT WE ARE
THINKING ABOUT THE FUTURE YEAR
ISSUES AS WE ARE MAKING
DECISIONS THIS YEAR BECAUSE IT
WILL LIMIT RESOURCES AND
CHOICES FOR USE OF JUMPSTART
.
>> I WANT TO MAKE SURE TO
UNDERSCORE THE IMPORTANCE OF THE
INVESTMENTS AND THE
RECOMMENDATIONS FROM THE TASK
FORCE.
THAT'S NOT IN QUESTION.
THE RECOMMENDATIONS THAT CAME
WITH THE $30 MILLION ALLOTMENT
IS NOT IN QUESTION.
WHAT HAS BEEN TEED UP FROM
CENTRAL STAFF THE IDENTIFYING
THE FUND SOURCE AND IDENTIFYING
THE STABILITY IN THE PROPOSAL
VERSUS THE OTHER INVESTMENTS.
WE WILL CONTINUE THE
CONVERSATION TO MAKE SURE WE
HAVE STABILITY FOR THE JUMP
START PRIORITIES AND THE TASK
FORCE AND THE ONGOING
COMMITMENTS WE HAVE MADE.
I THINK WE CAN DO BOTH BY MAKING
SURE THERE IS A MORE STABLE
FUNDING SOURCE.
THE INVESTMENTS FOR 2022 ARE NOT
AT RISK.
THE FUND SOURCE IS THE BIGGEST
QUESTION WE NEED TO IDENTIFY.
AND TO BE VERY CLEAR, I AM
COMMITTED TO THE $30 MILLION
AMOUNT.
THAT DOESN'T MEAN CARRYING OTHER
LAST YEAR'S PLUS ANOTHER $30
MILLION, I DON'T THINK THAT
WOULD SET UP THE COMMUNITY FOR
SUCCESS TO HAVE HALF OF THE
FUNDING RIPPED AWAY AT THE END
OF THE YEAR OR HALF OF THE
PROJECTS END.
AND I THINK WE CAN DO THE
BOTH/AND APPROACH DISCUSSED
TODAY.
MORE TO COME ON THAT PIECE.
THE $30 MILLION RECOMMENDATIONS
FROM THE TASK FORCE ARE NOT IN
QUESTION.
THE FUNDING SOURCE TO MAKE SURE
WE CAN DO THAT IN FUTURE YEARS
IS WHAT WE'RE DISCUSSING.
GREAT.
SO YES, I AM GOING TO BE LOOKING
AT HOW WE REFLECT IN THIS YEAR'S
BUDGET ANY OF THE CARRY FORWARD
DOLLARS THAT HAVE NOT BEEN SPENT
IN THIS YEAR SO WE CAN GET THE
AMOUNT TO $30 MILLION AND
MAINTAIN THE COMMITMENTS.
LET'S CONTINUE.
>> OKAY.
SO THIS SLIDE FOLDS IN THE
GENERAL FUND IMPACT OF TAKING
THE -- OF IMPLEMENTING THE ECI
INVESTMENTS, WHICH WOULD BE
$12.8 MILLION IN THE GENERAL
FUND.
SO THAT CHANGES THE RUNNING
TOTAL OF THE DEFICIT IN THE
GENERAL FUND FROM $9 MILLION
SURPLUS TO A $3.4 MILLION SHORT
FALL AND THE $12.75 MILLION FOR
ECI ON AN ONGOING BASIS.
AND THEN IF WE COULD LOOK
AT THAT SLIDE.
SO FAR, WE HAVE TALKED ABOUT THE
BASELINE OF THE BUDGET.
AND YOU KNOW, IT TRIGGERS A
SYNAPSE I MISSED.
IT'S IMPORTANT THAT THE
PARTICULARLY WITH REGARDS TO THE
TECHNICAL ADJUSTMENTS, ADDS BACK
IN THE GENERAL FUND SUPPORT FOR
THE LIBRARY AND SEATTLE PARKS,
WHICH HAD BEEN REDUCED GIVEN THE
ECONOMIC CIRCUMSTANCES IN 2020
AND 2021 BUDGETS.
I WANTED TO POINT THAT OUT THAT
THE SPENDING WE TALKED ABOUT
INCLUDES THE BASELINE CHANGES,
ADDING THE SUPPORT FOR LIBRARY
AND PARKS.
FUNDING DEPOSITED IN THE FISCAL
RESERVES.
FUNDING ECI AT A $12.8 MILLION
FROM THE GENERAL FUND.
AND NOW, WE ARE GOING TO TALK
ABOUT THE REMAINDER OF THE
SPENDING PROPOSED IN THE GENERAL
FUND BUDGET, WHICH IS ON THE NET
BASIS, $62.4 MILLION.
IT'S ACTUALLY -- THE TOTAL
AMOUNT OF SPENDING PROPOSED IS
$65.1 MILLION.
HOWEVER, THERE IS ABOUT $1.6
MILLION OF NEW REVENUE THAT IS
TIED TO SOME OF THE NEW
SPENDING.
AND THEN ALSO, THERE'S
ABOUT $4.5 MILLION OF
CORONAVIRUS LOCAL RECOVERY FUND
MONEY THAT IS ADDED TO THE
BUDGET TO SUPPORT SOME ECONOMIC
AND NEW DEAL INVESTMENTS.
AND IT'S IMPORTANT THAT
THAT MONEY IS ADDED USING
REVENUE REPLACEMENT PROVISIONS
FROM THE AMERICA RESCUE PLAN
ACT.
WE ARE -- JUST A LITTLE BIT OF
HISTORY, WE WERE PROVIDED
THROUGH THAT FEDERAL LEGISLATION
TWO DIFFERENT FUNDING TOTALLING
$116 MILLION.
ONE OF THE ADJUSTMENTS THAT I
COVERED EARLIER IN THE
PRESENTATION WAS SUPPLEMENT L
LEGISLATION DISCUSSED THIS YEAR.
THAT WAS PART OF THE SEATTLE
RESCUE PLAN THAT DEPLOYED THE
FIRST OF THE CLIPPER MONEYS.
I'LL REFER TO IT THAT WAY.
IT WAS THE FIRST OF THE CLIPPER
MONEY.
WE ARE RECEIVING A SECOND OF
$116 MILLION OF MONEY IN 2022.
AND IT SHOWS UP IN VARIOUS
PLACES, MORE SO IN THE JUMP
START FUND.
THE DISCUSSION WE WILL HAVE IN A
BIT.
THERE IS ABOUT $4.5 MILLION OF
CLIFR MONEY TO SUPPORT THE
GENERAL FUND PROGRAMS IN 2022.
IT'S IMPORTANT TO POINT OUT THAT
THE MONEY IS ONE TIME.
WE GET ONE INSTALLMENT OF $116
MILLION.
AND THE FULL AMOUNT.
IT'S NOT SOMETHING WE GET
UNFORTUNATELY EACH AND EVERY
YEAR.
IT'S IMPORTANT TO HAVE THAT AS
THE ECONOMY CONTINUES TO
RECOVER.
ONE POINT, IT'S JUST
IMPORTANT TO KNOW IT DOESN'T
HAVE NECESSARILY VARIOUS AT THIS
POINT IN THE BUDGET IS THAT WE
COULD UNDER THE FEDERAL GUIDANCE
USE A FULLER AMOUNT UNDER THE
BASIS OF REVENUE REPLACEMENT.
THIS IS SAYING IF THE CITY'S
REVENUES HAVE BEEN IMPACTED BY
COVID AT AN AMOUNT THAT MEANS
SUBSTANTIAL SUPPORT IS NEEDED TO
SUPPORT THE RECOVERY AS THOSE
REVENUE SOURCES RECOVER, YOU CAN
USE A HIGHER AMOUNT.
BASED ON THE CALCULATIONS FROM
THE CITY BUDGET OFFICE, IN FACT,
THE FULL $116 MILLION OF THE
CLIFR MONEYS COULD BE GOING TO
THE REVENUE REPLACEMENT.
THAT'S NOT HOW THE BUDGET IS
BUILT.
I'M POINTING THAT OUT BECAUSE IT
PROVIDES THE FLEXIBLE USE OF
COUNCIL HOW THE FUNDS ARE
DEPLOYED IN THE BUDGET ADOPTED.
>> TOM, COULD YOU REPEAT THE
SUMMARY MESSAGE FROM THAT?
AND THEN I HAVE A QUESTION ABOUT
SOME OF THOSE INVESTMENTS AS
WELL.
>> SURE.
SO I GUESS THE SNAPSHOT IS THERE
IS $116 MILLION THAT HAS NOT YET
BEEN FULLY DEPLOYED FROM THE
TRAUNCH TWO.
AND THE BUDGET DEPLOYS THAT
AMOUNT.
SOME OF IT IS DIRECTLY SPENT OUT
OF THE CLFR FUND THAT HAS BEEN
CREATED.
BUT $4.5 MILLION IS GOING TO THE
GENERAL FUND.
AND $65 MILLION, AGAIN, I DON'T
WANT TO GIVE AWAY THE PUNCH
LINE, BUT $65 MILLION USED TO
SUPPORT ON A ONE-TIME BASIS THE
JUMP START FUND INVESTMENTS.
BUT THE KEY TAKE AWAY IS
THAT THE FULL $116 MILLION COULD
BE USED IN A DIFFERENT WAY.
MOST IMPORTANTLY, AS REVENUE
REPLACEMENT, WHICH WOULD PROVIDE
THE UTMOST OF FLEXIBILITY FOR
HOW THE MONEYS ARE USED.
.
>> THANK YOU VERY MUCH.
COLLEAGUES, THAT'S AN IMPORTANT
NOTE.
IT'S IN THE MEMO AS WELL.
I WANTED TO MAKE SURE TO LIFT
THAT PIECE UP.
BECAUSE WE SAW OUR GOOD CHAIR OF
PARKS WANTED TO ALSO JUST
CONFIRM HERE ON THE MEMO WE TALK
ABOUT HOW THE BACK FILL
PROVISION OF JUMP START FUND
ALREADY MADE SURE THAT WE WERE
PREVENTING GENERAL FUND SERVICE
CUTS WHEN REVENUES CONTINUE TO
RECOVER SLOWER THAN ANTICIPATED.
SO WE'RE PROVIDING RESOURCES --
WHILE WE'RE ALSO PROVIDING
RESOURCES TO RESTORE
CONTRIBUTIONS TO THE SEATTLE
PARKS AND PUBLIC LIBRARY SO THAT
WE CAN REBUILD THE FISCAL
RESERVES, JUMP START WOULD HAVE
ACCOUNTED FOR REBUILDING THE
REDUCTIONS WITH MADE FOR PARKS
AND LABORS.
THERE WERE NOT CUTS, BUT SOME OF
THE SERVICES DURING COVID COULD
NOT HAPPEN.
WE KNOW HOW IMPORTANT THAT
FUNDING IS NOW.
PEOPLE ARE WANTING TO ENGAGE AND
GO TO COMMUNITY CENTERS AND
PARKS AND LIBRARIES.
THE FUNDS FROM JUMP START GOING
TO PARKS AND PUBLIC LIBRARIES
ARE, A, TO RESTORE THE PREVIOUS
COVID-RELATED REDUCTIONS.
AND B, THE ONE TIME FOR 2022
ONLY.
.
>> SO JUST A FEW OTHER KEY
POINTS.
JUST AS AN SIDE, THE MEMO
INCLUDES AN ATTACHMENT THAT
SHOWS BY LINE ITEM ALL OF THE
COMPONENTS OF THE $65 MILLION OF
NEW SPENDING THAT IS COVERED BY
THIS SLIDE.
SO COUNCILMEMBERS OF THE
COMMITTEE CAN SEE WHERE THE
MONEY IS GOING.
I'LL HIGHLIGHT TWO PIECES
BECAUSE THEY HAVE RELEVANCE TO
THE PRIOR DISCUSSION ABOUT THE
ORIGINAL $100 MILLION PROPOSAL
FROM ECI.
IN THE NEW BUDGET AS ONGOING
ADDS OUR $30 MILLION FOR
BUDGETING AND CAPACITY BUILDING,
WHICH WERE ONE TIME IN 2021 THE
PROPOSED ONGOING IN 2022.
THOSE TWO ITEMS ALONE
REPRESENT ABOUT CLOSE TO
TWO-THIRDS OF THE TOTAL NEW
SPENDING COVERED BY THIS SLIDE.
JUST BEFORE WE GO TO THE
NEXT PIECE, THIS ADJUSTMENT, ALL
THE SPENDING AND REVENUE
ADJUSTMENTS THUS FAR BRING THE
BASELINE BALANCE TO $62.4
MILLION IN THE GENERAL FUND.
THIS NEXT SLIDE --.
>> BEFORE YOU MOVE ON.
ALY?
>> I WANT TO CLARIFY TO MAKE
SURE WE ADDRESSED THE QUESTION
YOU WERE ASKING ABOUT THE
GENERAL FUND PUTTING BACK THE
GENERAL FUND INTO THE PARKS AND
OTHER BUDGETS FROM LAST YEAR.
I THINK YOUR QUESTION WAS
WHETHER -- I'M NOT CLEAR IF YOU
WERE ASKING WHETHER OR NOT THAT
REPLENISHMENT OF THE PARKS
GENERAL FUND IS PART OF THIS $62
MILLION.
AND I BELIEVE, AND TOM, CORRECT
ME IF I'M WRONG HERE, THERE ARE
TECHNICAL ADJUSTMENTS, SORT OF
BASELINE ADJUSTMENTS MADE TO THE
BUDGET.
AND I BELIEVE THAT THE MONEY
THAT WAS USED TO RESTORE THE
GENERAL FUND CONTRIBUTION TO THE
PARKS FUND IS NOT INCLUDED IN
THE $62 MILLION?
>> THAT'S CORRECT.
THAT WAS MY OVERSIGHT.
TO GO BACK TO THE STARTING SLIDE
THAT WAS THE BASELINE PLUS
TECHNICAL ADJUSTMENTS, I FAILED
TO MENTION THAT THAT INCLUDES
THE ADD BACKS FOR PARKS AND
LIBRARIES.
SO THIS STAGE RIGHT HERE
INCLUDED THOSE CRITICAL PIECES.
>> PUT ANOTHER WAY, CHAIRMAN
MOSQUEDA, THE RESTORATION OF
PARKS FUNDING IS INCLUDED HERE.
WHEN WE GET TO THIS POINT WHERE
THE AUTHORIZED CONTRIBUTION FROM
THE GENERAL FUND IS TO SUPPORT
ONGOING-BASED CITY SERVICES IS
DEPOSITED INTO THE GENERAL FUND,
THAT WAS ADEQUATE TO RESTORE
THAT FUNDING.
WHAT WE ARE TALKING ABOUT HERE
IN THIS $62 MILLION IS NEW
SPENDING, NOT SORT OF BASELINE
ADJUSTMENTS.
AND AS TOM POINTED OUT, THE
LARGEST ITEMS ARE PARTICIPATE
BUDGETS IN THE COMMUNITY SAFETY
CAPACITY BUILDING THAT WERE
PROVIDED IN THE 2021 ADOPTED
BUDGET AS ONE-TIME EXPENDITURES.
AND THIS IS GETTING, AGAIN, AT
THE POINT YOU AND DIRECTOR HANDY
RAISED EARLIER IN THE
DISCUSSIONS THAT THERE ARE
SHARED PRIORITIES INCLUDED IN
THIS NEW SPENDING.
THE COUNCIL HAS CHOICES TO MAKE
ABOUT SORT OF THE ONGOING SOURCE
OF FUNDS OR WHETHER OR NOT TO
KEEP THESE IN THE BUDGET AS
ONGOING.
OR IDENTIFY AN ADDITIONAL
REVENUE SOURCE.
.
>> SO IF WE CAN GO TO THE NEXT
SLIDE.
WE'LL WRAP UP THE DISCUSSION OF
THE GENERAL FUND.
SO AS MENTIONED, THE MAYOR'S
BUDGET INCLUDES A PROPOSED
CHANGE TO THE JUMP START POLICY.
ONE KEY PIECE OF THAT IS THAT A
HIGHER LEVEL OF SUPPORT IS
ALLOWED FOR THE GENERAL FUND IN
2022 ALSO KEY TO NOTE THAT THE
POLICY CHANGE WOULD DELETE THE
PENDING PLAN FOR FUTURE YEARS.
IT WOULD BE GOVERNED BY SOME
VERY BROAD SPENDING PARAMETERS
WITHOUT ANY OF THE DISCRETE
DETAILS BY PROGRAM AREA IN THE
JUMP START FUND CURRENT POLICY.
THE ADDITIONAL SUPPORT FROM THE
JUMP START FUND TO THE GENERAL
FUND IS ABOUT $62.4 MILLION.
THAT RESOLVES IN DEFICIT FROM
THE PRIOR SLIDE.
WHAT YOU SEE NOW IS IN FACT THE
ENTIRE GENERAL FUND REVENUES AND
EXPENDITURES OF $1.587 MILLION,
OF WHICH $147 MILLION WOULD BE
TRANSFERRED IN FROM THE JUMP
START VERSUS THE $85 MILLION
ALLOWED IN POLICY.
SO IT'S NOT TO SAY THAT JUMP
START FUND MONEY IS SPECIFICALLY
SUPPORTING ANY INDIVIDUAL ADD IN
THE GENERAL FUND.
THOUGH, THE WAY I WOULD SAY IT
IS THAT IF NOT THAT THE
ADDITIONAL DEPOSIT FROM THE JUMP
START FUND TO THE GENERAL FUND
MAKES THESE ADDS POSSIBLE.
SO THAT LEADS US INTO SOME
OF THE ISSUES THAT WE HAVE
ALREADY IDENTIFIED AND STARTED
THE DISCUSSION ABOUT THE
PROPOSED POLICY CHANGE TO THE
JUMP START FUND AND THE
IMPLICATIONS FOR BOTH THE JUMP
START FUND AND THE GENERAL FUND
THIS YEAR AND IN FUTURE YEARS.
JUST TO STATE, ISSUE ONE, DUE TO
ONGOING BUDGET PROPOSALS IN
2022, IT REQUIRES $148 MILLION
OF THE JUMP START FUND BALANCE,
$62.3 MILLION HIGHER THAN THE
AMOUNT ALLOWED WHICH REDUCES THE
CAPACITY OF THE JUMP START FUND
TO FUND THE PROGRAMS AS
SPECIFIED IN THE SPENDING PLAN
BY A LIKE AMOUNT IN 2023 AND
BEYOND.
>> I'M GOING TO PAUSE YOU REAL
QUICK BEFORE THE ISSUE
IDENTIFICATION IN DETAIL HERE.
COLLEAGUES, BEFORE ISSUE
IDENTIFICATION, AS YOU ALL TAKE
A LOOK AT THE PAGES THAT HAVE
BEEN REVIEWED BY TOM IN THE
MEMO, ARE THERE ANY QUESTIONS
BEFORE WE GO TO ISSUE
IDENTIFICATION?
OKAY.
TOM, I THINK EVERYONE IS WELL
BRIEFED.
PLEASE CONTINUE.
>> OKAY.
SO SOME OPTIONS TO CONSIDER FOR
THAT ISSUE.
ONE IS TO REDUCE SPENDING IN THE
2022 PROPOSED BUDGET AND REDUCE
THE TRANSFER FROM THE JUMP START
FUND BY THE SINGLE AMOUNT.
AND REALLOCATE THE RESOURCES
FROM WITHIN THE JUMP START FUND
IN THE 2022 BUDGET FOR PURPOSES
IN THE FUND POLICY.
A SECOND OPTION WOULD BE TO
CHANGE SOME AMOUNT OF THE
GENERAL FUND BUDGET AS ONGOING
AND SWITCH THEM TO ONE TIME IN
2022, WHICH ASSUME ALLIANCE ON
THE JUMP START FUND AFTER 2022.
IT SHOULD BE NOTED THAT ADDS
THAT ARE ONGOING IN NATURE,
THOSE THAT ESTABLISH INVESTMENTS
IN NEW PROGRAMS AND HIRE NEW
STAFF IN PARTICULAR MAY NOT BE
WORKABLE AS THE ONE-TIME
INVESTMENTS.
THAT'S SOMETHING TO CONSIDER IN
SWITCHING THINGS FROM ONGOING TO
ONE TIME.
NEXT, THIS KIND OF GOES TO
THE CONVERSATION EARLIER ABOUT
REVENUE SOURCING.
AN OPTION IS TO IDENTIFY A NEW
REVENUE SOURCE TO SUPPORT ALL OF
SOME OF THE NEW GENERALLY FUND
BUDGET ADDS AND BUDGET FOR JUMP
START PURPOSES.
AND IT'S VIABLE TO CONSIDER NO
ACTION FOR THIS.
>> THANK YOU AGAIN.
I KNOW THIS WILL BE ONE OF THE
BIGGEST ISSUES WE ADDRESS GOING
FORWARDMENT COLLEAGUES, I WANT
TO MAKE SPACE FOR FOLKS TO ASK
QUESTIONS AND WEIGH IN WITH
IDEAS.
ON THE FIRST ISSUE
IDENTIFICATION, THE WAYS IN
WHICH WE CAN SUPPORT THE AREAS
WITH SHARED PRIORITIES, FOR
EXAMPLE, IN THE EQUITABLE
COMMUNITY TASK FORCE AND
BUDGETING, FOR EXAMPLE, IT IS
IMPORTANT FOR US TO MAKE SURE
THAT THE CITY IS ABLE TO
MAINTAIN THE JUMP START
COALITION SPEND PLAN.
IT WAS UNANIMOUSLY PASSED BY
THIS COUNCIL, SPECIFICALLY TO
ADDRESS THE SPECIFIC ECONOMIC
CONDITIONS AND SUPPORTING OUR
CITY SMALL BUSINESSES AND
TOURIST SECTOR.
WE INVESTED IN HOUSING, GREEN
NEW DEAL INVESTMENTS, ECONOMIC
RESILIENCE.
THOSE ARE IMPORTANT AND HAVE
DIRECT CROSSOVER WITH THE BIPOC
INVESTMENT.
I WANT TO MAINTAIN THE
COMMITMENT OF $30 MILLION FOR
THE BUDGETS AND THE EQUITABLE
TASK FORCE.
HAVING THE $30 MILLION REFLECTED
IN THE BUDGET AND USING THE
DOLLARS UNSPENT, THERE'S AN
INTEREST IN HELPING TO IDENTIFY
THE ONGOING SOURCES OF REVENUE
IN FUTURE YEARS.
HAVING A DIRECTIVE OR
CONVERSATION THROUGH POLICY
CONVERSATIONS IN 2022 TO MAKE
SURE THAT THERE'S STABLE REVENUE
GOING FORWARD.
WE CAN DO THAT BY ALSO CHANGING
THE FUND SOURCE AS TOM TALKED
ABOUT TO IDENTIFY ONE-TIME
REVENUE SOURCES TO KEEP THE
INVESTMENTS AT $30 MILLION EACH.
AND THEN WORK TO CREATE
MORE STABLE REVENUE STREAMS
GOING FORWARD.
IN A WAY, THAT'S
A COMBINATION OF OPTION ONE AND
FUTURE WORK AND COLLABORATIVE
WORK ON IDENTIFYING A REVENUE
SOURCE GOING FORWARD OUTLINED IN
OPTION C.
A AND C.
BUT KNOW THAT THERE IS
STILL A HUGE AMOUNT OF
COMMITMENT TO THE TASK FORCE
RECOMMENDATIONS AND BUDGETING
AND KEEPING IT AT $30 MILLION
AND NOT PUTTING IT A CLIFF IN
THE FUTURE OR CUTS IN AREA.
AND WE HAVE SOME GOOD WAYS IN
WHICH WE CAN KEEP THE
COMMITMENTS AND IDENTIFY FUND
SOURCES IN THE FUTURE IF WE LOOK
AT ONE-TIME FUNDING.
MORE TO COME FROM ME ON THAT.
I WANTED TO SIGNAL MY INTEREST
IN A AND C.
OKAY.
>> SORRY, THE SECOND ISSUE THAT
CENTRAL STAFF ANALYSIS
IDENTIFIED WITH REGARD TO FISCAL
RESERVES.
THE PRIOR DISCUSSION ABOUT THE
PROPOSED BALANCE LEVELS AND HOW
THEY CONTRAST WITH THE CURRENT
POLICY.
PROPOSED FISCAL RESERVE POLICY
CHANGE WOULD BRING THE 2022
ENDING RESERVES TO $15.6 MILLION
LOWER THAN REQUIRED BY THE
CURRENT POLICY.
AND WOULD PROVIDE FOUR
ADDITIONAL YEARS TO REPLENISH
THE RESERVES.
SO THE OPTIONS FOR THIS --
SOME OPTIONS TO ADDRESS THAT
ISSUE WOULD BE TO REJECT THE
PROPOSED FISCAL POLICY CHANGE.
AND IDENTIFY AN ADDITIONAL $15
MILLION FROM WITHIN THE BUDGET
THROUGH ANY COMBINATION OF
REDUCTIONS OR NEW REVENUES TO
ADD AN ADDITIONAL $56 MILLION TO
RESERVES IN 2022.
OR THE COUNCIL COULD REVISE THE
POLICY TO ALLOW FOR A SHORTER OR
LONGER PAYMENT -- GROUP PAYMENT
PERIOD FOR THE EMERGENCY FUND.
AND THEN FINALLY, NO ACTION IS
ALSO AN OPTION.
>> THANK YOU, TOM.
ANY COMMENTS OR QUESTIONS ON
THIS?
OKAY.
SOME OF THE COMMENTS THAT WE
TALKED ABOUT EARLIER NOTE THAT
THE DECISIONS ABOUT WHERE TO
PLACE THE ADDITIONAL $25 MILLION
IN OUR EMERGENCY FUND AND OUR
REVENUE STABILIZATION FUND ARE
SOME POLICY CHOICES THAT WERE
MADE.
FOR ME, I AM INTERESTED IN
HEARING MORE ABOUT THE REVENUE
FORECAST FORTH COMING IN EARLY
NOVEMBER AND HEARING ABOUT THE
PRIORITIES THAT COUNCILMEMBERS
MAY BE IDENTIFYING IN THE NEXT
WEEK OR SO BEFORE WE CHOOSE AN
OPTION SPECIFIC TO THIS.
SOME OF THAT I THINK WE WILL
BE -- WE WILL NEED TO REMAIN A
LITTLE BIT FLEXIBLE BEFORE THE
BUDGET IS FINALIZED TO SEE HOW
THE PRIORITIES AND THE FUTURE
REVENUE FORECAST FACTOR IN TO
THE LEVEL WITH THE INVESTMENTS
MADE IN THE STABILIZATION FUND.
APPRECIATE THE NOTE THAT THE
JUMP START PROGRESSIVE PROPOSAL
NOT ONLY INCLUDED FUNDING FOR
THE PRIORITIES WE IDENTIFIED IN
THE SPEND PLAN, BUT INCLUDED THE
FLEXIBILITY TO BUILD BACK THE
RESERVES AND MAKE SURE THAT
INVESTMENTS FOR MADE IN, FOR
EXAMPLE, MARKS AND BOOIBS.
AND THE QUESTION IS HOW DO THE
PRIORITIES THAT YOU WILL
IDENTIFY IN THE NEXT FEW WEEKS
ALINE WITH ADDITIONAL REVENUE
CHANGES THAT WE SEE FROM THE
REVENUE FORECAST COUNCIL AND
PRIORITIES THAT YOU ALL HAVE
WITH HOW THE ITEMS ARE SHIFTED
AROUND IN THE PROPOSED BUDGET
YEAR.
I DON'T HAVE A SPECIFIC
RECOMMENDATION FOR OPTIONS
TODAY.
IT WILL BE DEPENDENT ON THE
CONVERSATIONS OVER THE NEXT FEW
WEEKS IN THE REVENUE FORECAST.
>> SO THE -- THERE'S A THIRD
ISSUE THAT IS IDENTIFIED.
THIS IS IN THE GENERAL FUND.
THIS REGARDS THE EQUITABLE
COMMUNITY INITIATIVE SUPPORT
FROM NEW REVENUE.
THE MAYOR'S PROPOSED BUDGET
INCLUDED $30 MILLION FOR ONGOING
INVESTMENTS BUT NOT A NEW
REVENUE SOURCE TO SUPPORT THEM.
THE OPTIONS INCLUDE CHANGE THE
APPROPRIATIONS TO ONE TIME AND
ENGAGE THE ECI TASK FORCE TO
IDENTIFY THE ONGOING PROGRESSIVE
REVENUE SOURCE.
REDUCE SOME OR ALL OF THE
APPROPRIATIONS IN 2022,
RECOGNIZING THAT MUCH OF THE
APPROPRIATIONS FOR THE ECI
RECOMMENDATIONS WILL CARRY
FORWARD IN THE 2022 AND ECI TASK
FORCE TO IDENTIFY A PROGRESSIVE
REVENUE SOURCE FOR THE ONGOING
BASIS IN 2023 AND BEYOND.
AND THEN AGAIN, NO ACTION IS AN
OPTION.
>> COLLEAGUES, ANY THOUGHTS OR
REFLECTIONS?
COUNCILMEMBER JUAREZ?
>> DIDN'T THE MAYOR, DIDN'T WE
GET A REVISION FROM DR. NOBLE, A
MODIFICATION ON A THAT DOESN'T
READ THE SAME AS YOUR MEMO?
AT LEAST I GOT THAT E-MAIL.
>> YOU MAY HAVE ACCESS FROM YOUR
TASK FORCE PARTICIPATION THAT
YOU CAN INFORM US ABOUT.
I'M SEEING COUNCILMEMBER --
THANK YOU FOR FLAGGING THAT.
I'M SEEING ALY COME ON IS
SCREEN.
IF YOU HAVE UPDATES, WE'RE HAPPY
TO RECEIVE THOSE.
>> I HAVE NOT HEARD UPDATES.
>> WE HAVE NOT RECEIVED ANY
RESPONSE FROM THE BUDGET OFFICE
ON THIS MEMO.
>> OKAY.
YOU KNOW WHAT, I GOT AN E-MAIL
THIS MORNING FROM THE EXECUTIVE
OR FROM MY STAFF SAYING GO TO
PAGE 18.
A HAS BEEN MODIFIED.
HERE'S THE MODIFICATION.
MAYBE I'M SPECIAL.
I DON'T KNOW.
DOUBLE CHECK HERE.
THE E-MAIL WAS FROM -- OH,
THE E-MAIL WAS FROM MY STAFF.
APPARENTLY IT WAS CHANGED.
MAYBE I'M WRONG ON THIS.
I APOLOGIZE IF I SPOKE
INCORRECTLY.
>> I WOULD JUST NOTE THAT THESE
ISSUES AND OPTIONS AND THE
ANALYSIS IN THE MEMOS IS NOT THE
WORK OF THE BUDGET OFFICE.
THEY MAY HAVE SHARED A DIFFERENT
PERSPECTIVE, BUT -- OR WE MAY
HAVE MODIFIED IT.
I'M NOT SURE WHAT THE
MODIFICATION YOU'RE REFERRING
TO, BUT THIS WORK WOULD NOT
REFLECT OTHER OPTIONS THAT OTHER
EXECUTIVE STAFF MAY HAVE
IDENTIFIED.
>> BUT I THINK THAT THIS IS THE
PERFECT OPPORTUNITY FOR STAFF IN
OUR OFFICES AND THE
CONVERSATIONS THAT WE ARE ABLE
TO HAVE HERE TODAY WITH
COUNCILMEMBERS TO IDENTIFY
POTENTIAL MODIFICATIONS TO SOME
OF THE OPTIONS OUTLINED IN THE
PRESENTATION FROM CENTRAL STAFF.
THESE ARE SOME EXAMPLES OF
OPTIONS.
YOUR TEAM MAY HAVE BEEN DOING
GREAT WORK THINKING ABOUT HOW TO
MODIFY OPTION A.
AND I AM ALL EARS ON THAT.
I HAVE A SIMILAR MODIFICATION TO
OFFER FOR B.
SO IF YOU HAVE WANT TO SHARE ANY
OF THAT, OF COURSE, YOU'RE
WELCOME TO.
IF YOU NEED EXTRA TIME TO THINK
THROUGH THE MODIFICATION, THIS
IS EXACTLY THE OPPORTUNITY FOR
US TO FLAG, HEY, I MAY HAVE A
MODIFICATION ON A, AND WE'LL
COME BACK AT A LATER DATE.
THAT'S NO PROBLEM.
>> OKAY.
I DOUBLE CHECKED THIS.
AND I CAN FILIBUSTER FOR
YOU, IF YOU WOULD LIKE.
>> OKAY.
YEAH.
I AM CORRECT.
I'LL GET BACK TO YOU.
I PROMISE.
>> NO WORRIES.
>> THANK YOU.
>> NO WORRIES.
THANK YOU.
BECAUSE I THINK THIS IS EXACTLY
WHAT THIS IS FOR.
IF YOUR STAFF HAVE IDEAS ON HOW
TO MODIFY OPTION A, THAT'S
FANTASTIC.
WE NEED ALL IDEAS ON THE TABLE
AT THIS POINT IN PREPPING THE
BUDGET.
I WOULD OFFER THIS IN TERMS OF
EQUITABLE COMMUNITIES INITIATIVE
CONTINUING ONGOING SUPPORT,
MAKING SURE WE'RE REFLECTING $30
MILLION.
I'M LEANING FORWARD B AS LISTED
ON THIS CHART HERE.
I THINK THAT WE CAN
MAINTAIN OUR COMMITMENT AT $30
MILLION RECOGNIZING THAT THERE
IS SIGNIFICANT AMOUNT OF FUNDING
ALLOCATED IN THIS YEAR'S BUDGET
UP TO $30 MILLION.
A LARGE PORTION OF THAT HAS NOT
YET BEEN SPENT.
SO I AM VERY INTERESTED IN
CARRYING FORWARD INTO 2022, AS
WE HAVE ALREADY AUTHORIZED, ANY
OF THAT UNSPENT MONEY.
AND TO TRUE UP THE AMOUNT, IF
YOU WILL, TO MAKE SURE THAT
WE'RE MAINTAINING A $30 MILLION
INVESTMENT TO CONTINUE THOSE
PRIORITIES.
AND I SAY CONTINUE BECAUSE I DO
BELIEVE WE CAN IN FUTURE YEARS
IN 2023 AND BEYOND IDENTIFY
INVESTMENT RESOURCE SO THAT
THERE IS STABLE FUNDING FOR THAT
SO THERE'S NO CONFLICT WITH
OTHER PROGRESSIVE REVENUE
SOURCES.
THAT ALLOWS FOR US, A, TO
MAINTAIN THE JUMP START
INVESTMENTS.
B, TO MAINTAIN THE INVESTMENT
AND RECOMMENDATIONS FROM THE
TASK FORCE.
AND C, TO MAKE SURE THAT WE'RE
UTILIZING THE UNSPENT DOLLARS IN
2021 IN 2022 AND TRUEING UP ANY
DIFFERENCE.
SO THAT IS WHAT I WILL BE
LOOKING FORWARD TO WORKING WITH
YOU ON.
AND THE DIFFERENCE IS WHAT WOULD
BE REFLECTED IN THE BUDGET TO
KEEP THEM AT $30 MILLION.
APPRECIATE THIS ISSUE HAS BEEN
DISCUSSED SO IN DEPTH THIS YEAR.
ONE OF -- THIS YEAR, TODAY.
ONE OF THE THINGS STILL TO BE
IDENTIFIED IS THE TRUE AMOUNT OF
UNSPENT DOLLARS BY THE END OF
2021.
WE'LL BE DOING ANALYSIS ON THAT
TO SEE IF WE CAN ACCURATELY
REFLECT THAT IN THE BUDGET SO
THAT $30 MILLION IS MAINTAINED.
ADDITIONAL COMMENTS OR
QUESTIONS ON THAT?
OKAY.
EARLY SIGNALLING ON WHAT WE'RE
DOING IN MY OFFICE IN TERMS OF
THINKING ABOUT HOW TO MAIN TAN
THE $30 MILLION.
ALL RIGHT.
LET'S CONTINUE, TOM.
>> OKAY.
THANK YOU.
SO TO JUST CALIBRATE WITH WHERE
WE ARE IN THE MORE DETAILED
MEMO, THIS NOW WE'RE JUMPING
INTO THE DISCUSSION ABOUT THE
JUMP START SPENDING PLAN.
IT'S SECTION FOUR OF THE MEMO
THAT BEGINS ON PAGE 16.
THIS TABLE IN ESSENCE
ENCAPSULATES THE JUMP START
POLICIES IN THE ORDINANCE WOULD
SEEK FOR DIFFERENT SPENDING
CATEGORIES IN THE ORDINANCE,
INCLUDING THE GENERAL FUND
TRANSFER AMOUNTS ALLOWED FOR
ADMINISTRATION, HOUSING,
EQUITABLE DEVELOPMENT
INITIATIVE, ECONOMIC
REVITALIZATION, AND THE GREEN
NEW DEAL.
AND IT COMPARES IN THE SECOND
COLUMN, MOVING TO THE RIGHT.
THOSE AMOUNTS FROM THE JUMP
START FUND PROPOSED IN THE
BUDGET AND SHOWS THE
DIFFERENCES.
SO THERE ARE A FEW THINGS
TO HIGHLIGHT WITHIN THIS TABLE.
FIRST AND FOREMOST, AND WE HAVE
TOUCHED ON IT IN EARLIER SLIDES
IS THAT THE BUDGET RELIES ON
$147 MILLION DEPOSIT IN THE
GENERAL FUND AS OPPOSED TO THE
$85 MILLION ALLOWED IN THE
POLICY.
THE JUMP START FUND IS
SUPPORTING THE GENERAL FUND TO
THE TUNE OF $62 MILLION MORE
THAT WOULD BE ENVISIONED IN THE
POLICY ORDINANCE.
THE ADMINISTRATION PIECE IS
SLIGHTLY DIFFERENT.
AND I'LL JUST STOP FOR A SECOND
AND EXPLAIN THAT THE ORIGINAL
JUMP START FUND ORDINANCE
ALLOWED FOR 5% OF TOTAL JUMP
START FUND RESOURCES TO GO
TOWARD ADMINISTRATION, WHICH IS
ON THE ORDER OF $7 MILLION.
THE PROPOSED BUDGET AND THE WAY
I HAVE SHOWN THE SPENDING PLAN
HERE, INSTEAD OF SHOWING
ADMINISTRATION AS ITS OWN
DISCRETE AMOUNT, IN FACT,
OVERLAYS THE SPENDING
CATEGORIES, WHICH IS A MORE
ACCURATE WAY IN THE PIECE.
WHAT REMAINS IN THE
ADMINISTRATIVE LINE IS JUST THE
TOTAL $7 MILLION ALLOWED FOR
ADMINISTRATION AFTER REFLECTING
THAT A LOT OF THE ADMINISTRATIVE
COSTS ARE INCLUDED IN OTHER
CATEGORIES SUCH AS HOUSING, EDI
AND GREEN NEW DEAL.
SO JUST WITH THAT SIDE
NOTE, MOVING TO HOUSING, YOU
WILL SEE --.
>> CAN YOU PAUSE REAL QUICK?
I'M SORRY.
COUNCILMEMBER SAWANT, DID YOU
HAVE A QUESTION?
>> I DO.
IT'S ON THIS SLIDE.
>> NO PROBLEM.
THANKS.
PLEASE GO AHEAD, TOM.
>> THANK YOU, MADAME CHAIR.
SO AS THIS SHOWS, THE INVESTMENT
FROM THE JUMP START FUND FOR
HOUSING IS $52.4 MILLION LOWER
THAN WHAT'S ENVISIONED IN THE
JUMP START FUND ORDINANCE.
SIMILARLY, THE ECONOMICAL
REVITALIZATION IS RECEIVING
FEWER FUNDS.
AND GREEN NEW DEAL IS ABOUT
$800,000 SHORT OF WHAT WOULD BE
CONTEMPLATED IN THE ORDINANCE
FOR JUMP START FUND.
AND THEN ALSO, AT THE BOTTOM OF
THE TABLE, THERE IS ABOUT $3.7
MILLION, WHICH IS MOSTLY SHOWN
IN THE PROPOSED BUDGET AND IN
THE WAY THE EXECUTIVE ATTEMPTS
TO DEMONSTRATE COMPLIANCE WHERE
JUMP START FROM THE POLICIES.
THERE'S $3.7 MILLION FOR
HOMELESS -- FOR SERVICES AIDING
PEOPLE EXPERIENCING HOMELESSNESS
THAT ARE NOT ACTUALLY PART OF
THE ALLOWED SPENDING FOR THE
JUMP START FUND.
IN IS THIS YEAR AND FUTURE
YEARS.
SO YOU HAVE, LUKE ME, HEARD
THAT THE PROPOSED BUDGET MEETS
THE SPIRIT OF THE JUMP START
FUND.
THE NEXT SLIDE WILL SHOW HOW
THAT IS ACHIEVED WITHIN THE
PROPOSED BUDGET.
GIVEN THE ONE-TIME QUICKER
MONEYS.
>> GREAT.
COUNCILMEMBER SAWANT, DID
YOU WANT TO WAIT UNTIL THE NEXT
SLIDE OR ASK YOUR QUESTION NOW?
>> YEAH.
IT MIGHT MAKE SENSE TO ASK RIGHT
NOW.
>> PLEASE GO AHEAD.
>> SO I JUST WANTED TO MAKE SURE
I UNDERSTAND THIS SLIDE
ACCURATELY.
THERE'S NO COLUMN IN THE TABLE
THAT SHOWS, AND THIS IS SLIDE 21
I'M REFERRING TO, THERE'S NO
COLUMN IF THE TABLE THAT SHOWS
HOW THE PAYROLL TAX, THE BIG
BUSINESS TAX REVENUES, SHOULD BE
AVAILABLE FOR HOUSING AND THE
GREEN NEW DEAL BASED ON THE PLAN
THE COUNCIL APPROVED WHEN THE
TAX WAS APPROVED LAST YEAR.
THAT'S ONE THING THAT I WANTED
TO INFORM.
THAT SPENDING PLAN HAD 62% OF
ALL THE BIG BUSINESS TAX
REVENUES GOING TO HOUSING, WHICH
WOULD BE OVER $145 MILLION IN
2022.
AND $21 MILLION GOING TO GREEN
NEW DEAL INVESTMENTS.
BUT AS I SAID, I DON'T SEE THERE
IS A COLUMN WITH THOSE FIGURES
ON THIS TABLE.
INSTEAD, THE FIRST COLUMN OF
THIS TABLE SHOWS HOW THEY WOULD
BE DISTRIBUTED IF $85 MILLION OF
THE FUNDS ARE USED TO PREVENT
BUDGET CUTS AS RECOMMENDED BY
THE ORDINANCE SPONSORED OVER THE
SUMMER.
THE TABLE SHOWED THAT THE
MAYOR'S PROPOSED BUDGET IS USING
THE TAX FUNDS TO BACK FILL THE
FUNDS AS PROPOSED BY THE COUNCIL
BILL OVER THE SUMMER.
BUT BOTH OPTIONS USE MORE TO
BACK THE GENERAL FUND DEFICITS
THAN WAS RECOMMENDED BY THE
INITIAL SPENDING PLAN.
WE HAVE TO REPEAT ALL OF THOSE
THINGS CLEAR.
FIRST, I WANT TO CONFIRM THAT MY
UNDERSTANDING IS ACCURATE.
AND I WANTED TO RAISE THAT THERE
IS OF COURSE ANOTHER OPTION AND
WE SHOULD REFRAIN FROM THINKING
ABOUT RAISING PROGRESSIVE
REVENUES AS SOMETHING THAT NEEDS
MORE IDEAS TO COME TO THE FLOOR.
IT'S CLEAR THAT WHAT WE NEED TO
DO.
WE WANT TO PREVENT THE BUDGET
CUTS IN THE DEPARTMENTS WITH
NECESSARY SOCIAL FUNCTIONS.
I'M SAYS IT THAT WAY BECAUSE THE
BLOATED POLICE BUDGET ARE
DIFFERENT THAN THE NEEDS TO MAKE
SURE THAT THERE ARE NO CUTS IN
OTHER DEPARTMENTS, DEPARTMENTS
THAT SERVE RENTERS OR
MARGINALIZED COMMUNITIES OR
UTILITIES.
ALL OF THAT IS NECESSARY.
AND WE HAVE TO PREVENT ANY
BUDGET CUTS.
IT'S CRUCIAL THAT THE -- FOR THE
LAST YEAR.
AND HAS BEEN NOTED BY OTHERS,
THE BIG BUSINESS TAX IS WHAT HAS
HELD THE BUDGET AFLOAT.
AND WE AT THE SAME TIME HAVE TO
PREVENT THE -- SOME OF THE
UNDERMINING OF THE ORIGINAL
SPENDING PLAN THAT THE COUNCIL
HAD APPROVED AND TO MAKE SURE
THAT THE INTENT IS FULLY FUNDED.
AND THAT MANDATE IS FULLY
FUNDED.
I WANTED TO SAY THERE'S NO
MISTAKE AROUND HOW THAT CAN BE
DONE.
IT'S OBVIOUS.
AND THE TAX ALREADY EXISTS
IN THE LAW BOOKS TO -- AND SO I
JUST WANTED TO REMIND MEMBERS OF
THE PUBLIC WHO ARE WATCHING THAT
A BILL TO DO JUST THAT, WHICH IS
INCREASE THE TAX RATE -- AND
WE'RE TALKING ABOUT THE LARGEST
AND MOST PROFITABLE
CORPORATIONS, THAT A BILL TO
INCREASE THE TAX RATE, DO JUST
THAT, DID COME FROM MY OFFICE.
AND IT WAS REFERRED TO THE
BUDGET COMMITTEE LAST NOVEMBER.
AND IT WAS SOMETHING THAT I
TRIED TO BRING FORWARD IN THE
BUDGET DELIBERATIONS LAST FALL.
AND I WANT TO INDICATE THAT I
INTEND TO PROPOSE THAT AGAIN IN
THIS YEAR'S BUDGET
DELIBERATIONS.
AND IT DOES -- AND NEEDLESS TO
SAY FIGURE IN THE LIST OF
PROPOSED IDEAS FOR BUDGET
AMENDMENTS I SENT OUT YESTERDAY,
MY STAFF SENT OUT TO THE
COUNCILMEMBERS AND THE CHAIR TO
LOOK AT WHEN WE TALK ABOUT THE
AMENDMENTS.
THANK YOU.
>> THANK YOU.
I WANT TO JUMP IN REAL
QUICK.
I THINK THERE IS AN
IMPORTANT DISTINCTION IN THE
FIRST LINE REGARDING GENERAL
FUND.
I THINK THAT THE EXPENSES THAT
WE ANTICIPATED COMING DOWN WITH
THE PROPOSED BUDGET AS TOM
OUTLINED IN THE FIRST FEW SLIDES
WERE TO THE TUNE OF ABOUT $50
MILLION.
IT WAS POLICY DECISIONS AND
CHOICES IN THE PROPOSED BUDGET
THAT BRINGS THE NUMBER FROM $50
MILLION TO $85 MILLION.
WE'RE ALLOWING FOR JUMP START TO
MAKE SURE THERE WASN'T AUSTERITY
CUTS DUE TO LOWER THAN
ANTICIPATED REVENUE AS WE
RECOVER FROM THE CRISIS HELPS TO
MAKE SURE WE'RE NOT ENGAGING IN
AUS TERTY BUDGETS AND TRYING TO
FIND $50 MILLION WORTH OF CUTS.
TO THAT POINT, JUMP START, LIKE
IT DID IN THE FIRST TWO YEARS,
HELPED TO PREVENT THE DEEP CUTS
TO PUBLIC SERVICES, ESPECIALLY
IN MAKING SURE THAT THE GOOD
LIVING WAGE JOBS WERE PROVIDED
IN THE MOMENT OF CRISIS SO THAT
THE MOST VULNERABLE COULD HAVE
ACCESS TO SERVICES IN COMMUNITY
HOUSING AND OTHER VULNERABLE
SERVICES LIKE MAKING SURE FOLKS
HAD ACCESS TO A SHELTER,
SHOWERS, AND FOOD SERVICES.
SO I DO THINK THAT THE LINE FOR
GENERAL FUND, THANK YOU FOR
SHOWING THAT.
AND I'LL STOP THERE.
IF YOU HAVE MORE TO ADD ABOUT
THE $50 MILLION.
AND I HAVE ONE MORE COMMENT THAT
EMPHASIZES ONE OF THE POINTS
THAT COUNCILMEMBER SAWANT
BROUGHT UP.
IT RAISED AN IMPORTANT QUESTION.
>> SO TO THE QUESTION ON THE $50
MILLION VERSUS THE $85 MILLION
THAT WAS SHOWN ON THE LAST
TABLE, AND I'LL FLIP BACK IN A
MINUTE.
I DON'T WANT TO DO TOO MUCH
FLIPPING.
IT GETS CONFUSING ON THE SCREEN.
THIS $50 MILLION IS LOOKING AT
BASE GENERAL FUND RESOURCES ON
THE CURRENT REVENUE FORECAST AND
BASE EXPENDITURES WE WANT
ANTICIPATE TO MAINTAIN THE BASE
CITY SERVICES.
THAT'S THE AMOUNT OF MONEY AFTER
THE BUDGET OFFICE GOES THROUGH
THE EXERCISE OF ADJUSTING ALL
ONGOING SERVICES FOR ANY ANNUAL
INCREASES, THAT SORT OF THING.
AND BACKING OUT ANY ONE-TIME
EXPENDITURES INCLUDED IN THE
2021 ADOPTED BUDGET.
THEN YOU GO TO THE CONTRIBUTION
INTO THE EMERGENCY RESERVES.
IN ORDER TO TO BE CONSISTENT
WITH CURRENT POLICY OR PROPOSED
POLICY, ONE COULD ARGUE WHETHER
OR NOT THIS IS OR ISN'T A
BASELINE EXPENDITURE.
ONE COULD ARGUE THAT THE
EXECUTIVE NEEDED AT LEAST $75
MILLION OF JUMP START REVENUE TO
PRESENT A BUDGET AND REALLY TO
BE CONSISTENT IF SHE WAS TO
PRESENT A BUDGET THAT WAS
CONSISTENT WITH THE CURRENT
POLICIES FOR THE EMERGENCY FUND
PROBABLY WOULD HAVE USED ALL OF
THE $85 MILLION.
SO THE IMPORTANT THING TO NOTE
IS THE JUMP START POLICIES THAT
WERE ADOPTED THIS YEAR DID ALLOW
FOR $85 MILLION TO BE DEPOSITED
INTO THE GENERAL FUND.
AND THERE WASN'T A NUANCE TO SAY
THAT -- AND THAT WAS A
CALCULATION OF PREPANDEMIC
FORECASTS TO COUNTRY GENERAL FUN
FORECASTS.
AND THERE WASN'T A, IF YOU DON'T
NEED IT ALL, YOU PUT THE OTHER
MONEY BACK IN THE JUMP START
FUND.
SO USING ABOUT $85 MILLION OR
$86 MILLION OF JUMP START IS
CONSISTENT WITH THE POLICY
DIRECTION FROM THE COUNCIL.
AND THEN QUICKLY, I'LL NOTE IN
RESPONSE TO COUNCILMEMBER
SAWANT'S QUESTION, SHE IS
CORRECT.
WE ARE NOT PRESENTING THE
SPENDING PLAN AS IT WAS ADOPTED.
THAT'S NOT CURRENT LAW.
BASED ON THE CURRENT ADOPTED
POLICY IN THE CITY OF SEATTLE,
THIS IS WHAT WE WOULD EXPECT TO
SEE IN THE PROPOSED BUDGET TO BE
COMPLIANT WITH CURRENT POLICIES.
AND THEN WHAT WE'RE POINTING OUT
IS THAT THE PROPOSED BUDGET
ISN'T CONSISTENT EVEN WITH THAT
ADJUSTED POLICY AND REQUIRES A
CHANGE TO THE JUMP START FUND
POLICIES, SHOULD YOU ACCEPT THE
PROPOSAL.
>> AND WHAT REMAINS CONSTANT IS
THE PERCENTAGE ALLOCATION INTO
THE SPEND CATEGORIES.
SO THE PERCENTAGE ALLOCATION FOR
AFFORDABLE HOUSING, GREEN NEW
DEAL, XIK RESILIENCE, EQUITABLE
DEVELOPMENT INITIATIVE, ALL OF
THOSE PERCENTAGES REMAIN WHOLE
WITH THE INTENT TO SAY IF WE
NEEDED FLEXIBILITY FROM THE
CRISIS, WE WOULD WARD OFF
AGAINST AUSTERITY BUDGETING.
I WANT TO UNDERSCORE A POLICY
CHOICE THAT THE MAYOR MADE IN
THE WAY IN WHICH JUMP START IS
USED, NOT ADHERING TO THE SPEND
PLAN.
AND THE POINT WAS MADE ABOUT THE
ALLOCATION SPECIFIC IN HOUSING.
JUMP START SPEND PLAN HAD ALWAYS
AND CONTINUES TO MAINTAIN A
REQUIREMENT THAT TWO-THIRDS OF
THE FUNDING FROM JUMP START GOES
INTO BUILDING AFFORDABLE
HOUSING.
TO ADDRESS THE MOST PRESSING
CRISIS IN OUR CITY.
WHAT WE SEE INSTEAD WITH THE
PROPOSAL IS TWO-THIRDS OF THE
JUMP START FUNDING GOING TO
OTHER INVESTMENTS.
SOME OF THAT FOR THE REVENUE
STABILIZATION FOR THE $50
MILLION.
AND SOME IS GOING IN FOR THE
CLOSING OF THE GAP FOR SOME
POLICY DECISIONS THAT WERE MADE.
BUT INSTEAD OF TWO-THIRDS GOING
TO HOUSING, TWO-THIRDS GOING TO
OTHER USES.
I THINK THAT'S THE BIG POLICY
QUESTION IN FRONT OF US.
AND YOU OUTLINE THAT WELL
ON PAGE 17 IN YOUR MEMO AS WELL.
COUNCILMEMBER SAWANT, PLEASE GO
AHEAD.
>> I JUST WANTED US TO BE CLEAR
ABOUT THE NUMBERS.
WE ARE TALKING ABOUT
DIFFERENT NUMBERS.
THE FIRST DIGITS ARE NOT THE
SAME.
$85 MILLION WAS SUBTRACTED.
62% OF WHAT WAS LEFT.
THAT IS NOT THE 62% THAT WAS
ORIGINALLY INTENDED.
.
>> YEAH.
L I WILL ACKNOWLEDGE THERE WAS A
CHANGE IN THE ORIGINAL SPEND
PLAN.
AND I WANT TO CONFIRM THE POINTS
COUNCILMEMBER SAWANT WAS MAKING
IN TERMS OF OPTIONS TO IDENTIFY
ADDITIONAL REVENUE OR NEW
REVENUE.
AND JUST CONFIRMING THAT THERE
IS THE OPTION OF A NEW REVENUE
SOURCE AS COUNCILMEMBER SAWANT
NOTED.
THERE'S THE OPTION OF MODE
IDENTIFYING THE EXISTING RATES
OF THE REVENUE SOURCES TO
INCREASE THE AMOUNT OF THE
REVENUE AS WELL AS REDUCTIONS TO
OTHER CITY SPENDING TO FREE UP
THE FUNDS TO SUPPORT THE OTHER
PRIORITIES.
I WANTED TO ACKNOWLEDGE THAT.
NO DISAGREEMENT ON THE SORT OF
RANGE OF OPTIONS AVAILABLE AND
THAT THERE WAS A BILL PREPARED
LAST YEAR AT THE REQUEST OF
COUNCILMEMBER SAWANT TO ADJUST
THE RATE OF THE PAYROLL TAX TO
INCREASE THE AMOUNT OF REVENUE
ANTICIPATED.
>> I THINK THERE IS A LOT OF
AGREEMENT -- WELL, I WILL OWN
THERE'S AGREEMENT BETWEEN A LOT
OF US ON COUNCIL THAT THERE IS A
NEED FOR ADDITIONAL REVENUE TO
RESPOND TO THE GROWING NEED, FOR
EXAMPLE, FROM THE STUDY THAT
SAYS THAT WE NEED SOMEWHERE
BETWEEN $400 TO A BILLION
DOLLARS IN THE REGION TO ADDRESS
AFFORDABLE HOUSING.
THE STEPS WE TOOK FOR THE
REVENUE FOLLOWING THE LEAD OF
THE COMMUNITY IS TO SHOW THAT
THE CITY IS TRYING TO TAKE
ACTION.
AND WE WILL CONTINUE TO WORK TO
ADDRESS THE NEEDED FUNDS IN
AFFORDABLE HOUSING.
AND THE AMOUNT COMING IN FROM
JUMP START WILL CONTINUE TO GO
UP YEAR OVER YEAR.
FOR EXAMPLE, WE SAW $214 MILLION
WAS THE ANTICIPATED AMOUNT FOR
THIS YEAR.
WE'RE AT $235 MILLION ACTUALLY.
AND SO AS WE SEE GREATER
STABILITY IN REVENUE THAT COMES
IN THE DOOR, IT WILL NOT BE $50
MILLION GOING TO CREATE
STABILITY FOR THE REVENUE
SOURCES.
AND THE FULL PERCENTAGE THAT WE
ANTICIPATE FOR THE ALLOTMENTS
WILL GO TO PLACE.
62% OF WHAT WE ANTICIPATED GOING
TO AFFORDABLE HOUSING SHOULD
HAVE BEEN AROUND $136 MILLION
AND SLIGHTLY UPWARDS OF THAT.
AND THAT ALONE, OBVIOUSLY,
IS NOT ENOUGH.
MORE WORK TO COME HERE.
BUT $136 MILLION EVEN SCALED
DOWN TO 97 IN TERMS OF THE
EXPECTATION FOR THIS YEAR WAS AN
IMPORTANT MARKER TO BE ABLE TO
BUILD AFFORDABLE HOUSING.
MY CONCERN, AND I'LL PUT IT OUT
THERE RELATED TO NOT HAVING ALL
OF THE JUMP START FUNDING GOING
TO AFFORDABLE HOUSING RIGHT NOW
IS WHEN WE USE FEDERAL DOLLARS
AND IT'S ONE TIME IN NATURE, WE
CREATE A CLIFF FOR THE DOLLARS
IN FUTURE YEARS.
AFFORDABLE HOUSING DEVELOPMENT
FOLKS ESPECIALLY COMING FROM THE
BIPOC COMMUNITY TRYING TO BUILD
THE AFFORDABLE HOUSING FOR THE
COMMUNITIES AT RISK OF
DISPLACEMENT, IF WE DON'T HAVE
THE FULL AMOUNT, THAT CREATES
THE UNPREDICTABILITY FOR THE
HOUSING.
AND PART OF THE INTEREST IS
FLAGGING CHANGING THE FUND
SOURCE SO THAT WE DON'T HAVE $52
MILLION COMING FROM A ONE-TIME
INVESTMENT FROM THE FEDS WHEN
WHAT WE NEED TO SHOW IS YEAR
OVER YEAR AND INCREASES.
WHEN WE HAVE HALF OF THE AMOUNT
OF MONEY GOING TO AFFORDABLE
HOUSING FROM A ONE-TIME SOURCE
THAT GOES AWAY AT THE END OF
NEXT YEAR, THAT DOES NOT CREATE
THE STABILITY WE NEED TO SHOW
STABILITY YEAR OTHER YEAR SO
THAT PEOPLE KNOW THAT THE STATE
IS A STABLE FINANCIAL SOURCE FOR
BUILDING THE AFFORDABLE HOUSING.
THAT'S SOMETHING I'LL CONTINUE
TO LOOK AT IS A WAY FOR US TO
WRITE -- RIGHT THAT FUND SOURCE
SO THAT THE COLOR OF MONEY GOING
TO AFFORDABLE HOUSING IS
CONSISTENT AND SHOWS
PREDICTABILITY YEAR OVER YEAR.
>> CHAIR MOSQUEDA, CAN I QUICKLY
COMPLETE MY QUESTION?
>> OH, YES.
SORRY.
DID I INTERRUPT YOU?
>> NOT AT ALL.
JUST TO MAKE SURE THAT ALL
MY QUESTIONS GOT RESPONSES.
I KNOW ONE OF THE -- PART OF
WHAT I ASKED, AND ALY, IF YOU
CAN CONFIRM THIS, THE NUMBERS
THAT $125 MILLION FOR HOUSING
AND $21 MILLION FOR GREEN NEW
DEAL, THE ORIGINAL PLAN WAS
FOLLOWED.
IF THE YOU CAN CONFIRM THAT.
AND JUST ON THE POINT, CHAIR
MOSQUEDA, I AGREE WE CANNOT HAVE
SOCIAL HOUSING AND GREEN NEW
DEAL PROJECTS WHICH ARE
ABSOLUTELY ESSENTIAL AND
CRITICAL FOR OUR COMMUNITIES,
FOR THOSE TO BE DEPENDENT ON THE
ONE-TIME FUNDS.
AND THE MAYOR'S PROPOSED BUDGET
HAS THE LARGE HOUSING BUDGET
BECAUSE OF THE FEDERAL FUNDS.
WE NEED ANNUAL FUNDS THAT HAVE
TO COME FROM THE BIG BUSINESSES
AND THE WEALTHY.
AND IT IS IMPORTANT THAT
THE COUNCIL PASS THIS TAX.
AND I AM HAPPY TO HEAR THE
COMMENTS THAT WE MADE ABOUT HOW
THIS IS WHAT THE COUNCIL AS A
WHOLE IS THINKING ABOUT.
I HOPE THAT WHEN I MANY OFFICE
BRINGS THE AMENDMENT FORWARD
THAT WE DO INCREASE THE TAX
RATE.
THAT IS A VIABLE AVENUE FOR US
TO MAKE SURE THAT WE DON'T ROB
PETER TO PAY PAUL, AS YOU WERE
SAYING.
>> I AGREE WITH THE NUMBERS
BASED ON THE ORIGINAL SPEND PLAN
AND THE REVENUE PROJECTED, THOSE
NUMBERS ARE CORRECT, ABOUT $21
MILLION.
ABOUT $136 MILLION FOR HOUSING.
AND THAT WOULD BE ABOUT THE
AMOUNT WE WOULD HAVE EXPECTED
THIS YEAR HAD GENERAL FUND
REVENUES REBOUNDED.
SO AGREE WITH THOSE
CALCULATIONS.
.
>> THANK YOU FOR TOGGLING
BETWEEN THE SLIDES THERE.
AND WE'RE GOING TO LET YOU
CONTINUE.
>> THANK YOU, MADAME CHAIR.
THIS SLIDE IS A HELPFUL FOR THE
CONTEXT OF THE DISCUSSION
BETWEEN COMMITTEE MEMBERS.
IT DOES SHOW INDEED THE AMOUNT
OF ONE-TIME FEDERAL FLICKER
MONEY THAT'S DEPLOYED IN THE
MAYOR'S PROPOSED BUDGET FOR JUMP
START SPENDING PLAN PURPOSES.
ABOUT $15.5 MILLION HOUSING.
AND $1 MILLION TO THE
INVESTMENTS.
SO THIS IS THE 2022 PROPOSED
BUDGET LOOK FOR HOW JUMP START
PRIORITIES CAN BE MET OR ARE MET
USING A MIX OF ONGOING AND
ONE-TIME RESOURCES.
AND THE
PRIOR SLIDE IS A SNEAK PEEK OF
2023 AND BEYOND.
UNDERSTANDING THERE WILL
HOPEFULLY BE A HIGHER LEVEL OF
RECOVERY IN THE GENERAL FUND
LEADING TO A REDUCED AMOUNT.
IT WOULD SHOW THE SHORT
FALLS IN THE VARIOUS SPENDING
PLAN CATEGORIES THAT ARE JUST
PROPPED UP ON A ONE-TIME BASIS
FROM THE FEDERAL FUNDS THIS
YEAR.
OR NEXT YEAR, I SHOULD SAY.
>> I WILL ADD ON THIS SLIDE,
THIS PRESENTATION REFLECTS WHAT
THE DIRECTOR AND OTHERS FROM THE
EXECUTIVE HAVE PRESENTED AS HOW
THE PROPOSED BUDGET MEETS THE
INTENT OF THE JUMP START
SPENDING PLAN IN TERM OFFENSE
THE AMOUNT OF TOTAL DOLLARS
GOING TO THE CATEGORIES.
THIS TABLE IS SLIGHTLY DIFFERENT
IN THAT IT REPRESENTS CENTRAL
STAFF SORT OF SLIGHT DIFFERENT
TAKE ON THAT, WHICH IS TO SAY
INCLUDED IN THE -- IT WAS $3.7
MILLION PROPOSED TO BE SPENT ON
HOMELESS SERVICES AND MENTAL
HEALTH SERVICES THAT ARE NOT
FOUND ANYWHERE IN THE SPEND
POLICY.
WE SORT OF INCLUDED THAT NUMBER
BUT HAVE DROPPED IT BELOW THE
LINE TO REFLECT THAT THAT WOULD
NOT BE A CONSISTENT SPENDING
AREA BASED ON CURRENT POLICY.
>> THANK YOU VERY MUCH.
I THINK THAT THE SLIDE IS
ILLUMINATING.
TO THE EARLIER CONVERSATION WE
HAD ABOUT THE CONCERN ABOUT
WHICH SOURCE OF REVENUE THE
GOING FORWARD INVESTMENTS.
FOR EXAMPLE, WITH $50 MILLION
COMING FROM THE FEDERAL COVID
RELIEF FUNDS $13.5 MILLION FOR
ECONOMIC REVITALIZATION FROM
COVID RELIEF FUNDS, AND $1
MILLION GOING TO THE PRIORITIES
FOR GREEN NEW DEAL FROM COVID
RELIEF FUND, IT SEEMS LIKE THE
TOTAL OF $65 MILLION WOULD MEAN
THAT WHEN THOSE ONE-TIME FUNDS
GO AWAY, THEY WOULD NOT BE BUILT
INTO NEXT YEAR'S BUDGET.
IS THAT A VALID TAKE AWAY AND
CONCERN FROM YOUR MEMO THAT BY
SWAPPING THE USE OF JUMP START
FOR THE ONE-TIME FEDERAL
INVESTMENTS, WE RISK THAT IN
FUTURE YEARS, IT WOULD CREATE
THE REDUCTION OF JUMP START
INVESTMENTS TO THE TUNE OF $65
MILLION.
>> YES.
THAT IS ACCURATE.
AND MORE SO THAN RISK, IT
REPLACES THE SPENDING LINES
GOING FORWARD IN THE BASE
BUDGETS IN THE FUTURE.
IN 2023 AND BEYOND, THERE WOULD
BE $65.5 MILLION LESS FOR JUMP
START FUND PURPOSES THAN
ORIGINALLY WOULD BE REQUIRED IN
THE JUMP START.
BECAUSE OF THE USE OF ONE-TIME
FUNDS.
>> THANK YOU FOR THAT
CLARIFICATION.
FOR ME, THIS IS AN IMPORTANT
POINT FOR US TO RUMINATE ON AS
WE DEVELOP OUR PROPOSED BUDGET
AS A COUNCIL.
THE QUESTION IS BROADER THAN FOR
THE ONE TIME CAN WE MEET THE
SPIRIT OF JUMP START.
THE CONSEQUENCE OF THAT IS NOT
BUILT IN BASE BUNLTS GOING
FORWARD.
ESPECIALLY THE AFFORDABLE
HOUSING REQUEST.
THERE WAS A LARGE CONTINGENT OF
THOSE WHO ASKED FOR INVESTMENTS
INTO BUILDING AFFORDABLE HOUSING
FROM THE JUMP START.
AND THE REASON IS WE HAVE ASKED
THE COMMUNITY MEMBERS, NONPROFIT
COMMUNITY MEMBERS, BIPOC-LED
ORGANIZATIONS TO STEP UP AND
LEAD THE HOUSING GAP.
AND THEY HAVE RESPONDED WITH
OTHER $100 MILLION TO THE OFFICE
OF HOUSING.
THE NOFA POT OF FUNDING RIGHT
NOW FOR INVESTING IN AFFORDABLE
HOUSING IS ONLY $35 MILLION.
THAT'S A HUGE PLAN OF AFFORDABLE
HOUSING PROJECTS THAT ARE READY
TO GO.
THEY JUST NEED THE FINANCIAL
ASSISTANCE TO GET THERE.
THE CITY PROVIDES A CRITICAL
COMPONENT OF THAT.
IF WE END UP IN A SITUATION
WHERE THE SITUATION IS HALVES
AND WE ARE NOT PROVIDING THE
RESOURCES FOR THE DEVELOPERS, WE
RISK THE ABILITY TO BUILD THE
PROJECTS READY TO GO, IN THE
PIPELINE RIGHT NOW.
AND I THINK THAT IT'S A
BROADER QUESTION THAN CAN YOU
LET THIS GO THIS ONE YEAR,
RECOGNIZING THAT THIS WILL BE
BUILT INTO THE BASE BUDGET.
I LEFT THAT UP TO UNDERSCORE THE
IMPORTANCE OF WHY THE COLOR OF
MONEY DOES MATTER HERE.
AND I AM GOING TO BE CONTINUING
TO LOOK TO SEE HOW WE CAN
POTENTIALLY MOVE THE REVENUE
SOURCES TO CREATE STABILITY.
TOM MENTIONED IT.
I ASKED HIM TO REPEAT THE
COMMENT.
IF WE LOOK AT DIFFERENT WAYS TO
FUND PRIORITIES AND IDENTIFY
MORE APPROPRIATE WAYS TO USE
ONE-TIME RESOURCES FROM THE FEDS
VERSUS AREAS OF INVESTMENT WHERE
WE KNOW ONGOING RESOURCES ARE
GOING TO BE CRITICAL AND ONGOING
RESOURCES CAN LEAD TO GREATER
PROJECTS IN THE FUTURE, THAT'S
SOMETHING I'LL BE DIVING INTO
OTHER THE NEXT FEW WEEKS AS WE
TRY TO FIND THE STABILITY IN THE
BUDGET AND IDENTIFY THE
PRIORITIES.
COUNCILMEMBER HERBOLD, TAKE
IT AWAY.
>> JUST VERY BRIEFLY, I WANT TO
ADDRESS THAT THE FACT THAT I
HAVE HEARD THE PROPOSED 2022
BUDGET AS BEING DESCRIBED AS
BEING CONSISTENT WITH THE SPIRIT
OF THE JUMP START FUNDING PLAN.
AND I APPRECIATE THAT
PERSPECTIVE.
FOR ME, A CENTRAL COMMITMENT OF
JUMP START WAS AN ONGOING
REVENUE SOURCE TO DOUBLE OUR
ANNUAL INVESTMENT IN HOUSING.
FOR THAT REASON, I DO NOT FIND
THE PROPOSED 2022 BUDGET TO BE
CONSISTENT WITH THE SPIRIT OF
THE JUMP START.
THANK YOU.
.
>> WELL SAID.
THANK YOU VERY MUCH.
LET'S CONTINUE.
>> THANK YOU.
THIS IS THE LAST SLIDE FOR
REVIEW OF JUMP START.
AGAIN, NOW WE'RE MOVING TO ISSUE
IDENTIFICATION.
THERE ARE THREE ISSUES.
THEY WILL BE FAMILIAR BECAUSE OF
THE CONCEPTS THE COMMUNITY HAS
BEEN DISCUSSING AROUND THIS
AREA.
FIRST, WITH REGARDS TO JUMP
START ON POLICY CHANGE, THE
PROPOSED BUDGET LEGISLATION
WOULD CHANGE TO SPEND THE
ALLOCATIONS GOVERNING THE USE OF
JUMP START PAYROLL AND ELIMINATE
THE SPENDING PLAN IN THE FUTURE
YEARS.
OPTIONS TO CONSIDER IN LIGHT OF
THE ISSUE, ONE IS OPTION A, TO
DO NOT PASS THE BUDGET
LEGISLATION TO CHANGE THE JUMP
START FUND POLICIES AND AMEND
THE BUDGET ACCORDINGLY TO ALINE
THE SPENDING ALLOCATIONS
CONSISTENT WITH THE EXISTING
POLICY.
SECOND OPTION, OPTION B,
WOULD BE TO AMEND THE
LEGISLATION TO ALLOW DIFFERENT
USES FOR 2022.
HOWEVER, BUT TO RETAIN THE
SPENDING PLAN FOR THE FUTURE
YEARS.
OPTION C, TO AMEND THE SPENDING
PLAN TO CHANGE THE USES IN 2022
AND CONTINUE THEM AT THAT NEW
REVISED LEVEL IN FUTURE YEARS.
AND THEN, AGAIN, A FINAL OPTION
TO TAKE NO ACTION.
>> THANK YOU VERY MUCH.
I'M NOT SEEING ANY HANDS GO UP
RIGHT NOW.
I WILL BUILD OFF OF WHAT
COUNCILMEMBER HERBOLD NOTED.
OPTION A FOR ME AT THIS POINT IS
STAYING IN LINE WITH THE
COMMITMENTS THAT WE MADE TO
COMMUNITY WHEN WE PASSED
PROGRESSIVE JUMP START PAYROLL
TAX.
WE HAD COMMITTED THAT THE
FUNDING WOULD BE ADDITIVE.
WE TALKED ABOUT WAYS IN WHICH
THE COMMITMENT WOULD WEAR OFF
THE AUSTERITY BUDGETS.
WE WANTED TRANSPARENCY AROUND
THE INVESTMENTS MAINTAINED.
THIS WAS NEVER INTENDED TO BE A
WAY TO FUND CHECKS THAT HAD BEEN
WRITTEN BUT NO FUNDS SOURCED TO
MAKE IT POSSIBLE TO CASH THE
CHECKS.
I WANT TO MAKE SURE THAT WHAT
WE'RE DOING THROUGH JUMP START
IS ADDITIVE.
AT THIS POINT, I THINK THERE'S A
LOT OF INTEREST IN ALSO MAKING
SURE THAT WE'RE REBUILDING THE
RESERVES AND NOT HAVING A TAIL
THAT IS LONGER THAN ANTICIPATED.
WE NEED TO REBUILD THE RESERVES
AS WELL.
AND THE WAY IN WHICH THE MAYOR
HAS BOTH INVESTED IN DIFFERENT
PRIORITIES AND PROPOSING TO
CHANGE THE WAY IN WHICH WE BUILD
BACK THE RESERVES CREATING A
GREAT CONCERN FOR ME.
I AM INTERESTED IN MAINTAINING
THE FUND POLICIES AND THE SPEND
PLAN THAT THE COUNCIL
UNANIMOUSLY PASSED, UNANIMOUSLY
PASSED TWICE AS IT RELATES TO
THE INVESTMENTS.
AND WE'LL BE LOOKING FORWARD TO
WORKING WITH YOU TO MAKE SURE
THAT WE HAVE THE ABILITY TO
INVEST IN SHARE PRIORITIES.
I AM INTERESTED IN AT THIS POINT
LEANING TOWARD OPTION A.
.
>> THE SECOND ISSUE IS REGARD TO
JUMP START FUND SPENDING AND
SUSTAINABILITY.
THIS IS DUE TO THE USE OF THE
ONE-TIME FEDERAL CLFR MONEYS TO
MEET THE JUMP START FUND
SPENDING AND INVESTMENTS IN 2022
COUPLED WITH AN ASSUMED HIGHER
LEVEL OF SUPPORT FOR THE
GENERALLY FUND IN 2022.
IN FUTURE YEARS, THE FUND WILL
HAVE $65 MILLION LESS FOR THE
SPENDING PLAN PRIORITIES IN 2023
AND BEYOND.
AND THEN OPTIONS TO ADDRESS THAT
WOULD INCLUDE USING UP TO $65
MILLION OF ONE-TIME CLFR MONEYS
TO SUPPORT ONE-TIME 2022 GENERAL
FUND PROSE LS, USING THE REVENUE
REPLACEMENT PROVISIONS AND THE
AMERICAN RESCUE PLAN ACT.
AND REDUCE THE AMOUNT OF JUMP
START FUNDS DEPOSITED.
THIS WILL MEET THE SPIRIT OF THE
JUMP START FUND PRIORITIES WITH
THE FUNDS, WHICH WOULD BRING THE
JUMP START FUND CLOSER TO
COMPLIANCE WITH THE EXISTING
FUND POLICY.
AND THIS WILL REDUCE THE AMOUNT
OF ASSUMED GENERAL FUND
AVAILABLE FOR GENERAL USE IN
2023 AND BEYOND.
OPTION B WOULD BE TO CUT UP
TO $65 MILLION IN THE GENERAL
FUND PROPOSALS, REDUCE THE
TRANSFER FROM THE JUMP START TO
THE GENERAL FUND BY A SINGULAR
AMOUNT.
AND FUND THE SAME AMOUNT FOR
HOUSING, LOCAL ECONOMIC
RECOVERY, AND ITEMS SIMILAR.
THIS IS THE INCREMENT AND
ADDITIVE TO IS ALLOCATIONS.
AND THEN THE FINAL OPTION WOULD
BE TO TAKE NO ACTION.
.
>> THANKS SO MUCH.
I'M NOT SEEING ADDITIONAL HANDS.
I WILL REITERATE.
TO THE EXTENT WE CAN FIND
ONE-TIME FUNDING THAT THE
FEDERAL PARTNERS ALLOCATED TO US
TO BE ORIENTED TOWARD MORE
APPROPRIATE ONE-TIME FUNDING
INVESTMENTS IS WHAT I'M LOOKING
FORWARD TO.
AND REPURPOSING THE JUMP START
DOLLARS BACK TO THE ORIGINAL
SPEND PLAN SO THAT WE CAN DO OUR
DUE DILIGENCE TO STAY TRUE TO
THE SPEND PLAN AS PASSED
UNANIMOUSLY BY COUNCIL.
.
>> AND THEN THE FINAL OPTION,
TIS REGARDS THE USE OF JUMP
START MONEY FOR HOMELESSNESS AND
MENTAL HEALTH PURPOSES AS
OPPOSED TO JUMP START SPENDING
PLAN PURPOSES.
THEY'RE DESCRIBED AS DEVIATIONS
FROM THE JUMP START SPENDING
PLAN.
APPROXIMATELY $3.7 MILLION OF
FUNDING FOR SERVICES FOR
HOMELESSNESS AND MENTAL HEALTH
IS ALLOCATED FROM THE
JURISPRUDENCE START FUND.
SO THE OPTIONS THAT HAVE BEEN
IDENTIFIED WOULD INCLUDE CUTTING
OR REDUCING THOSE ITEMS FROM THE
BUDGET.
IDENTIFYING A NEW SOURCE OF
REVENUE FOR THESE ITEMS.
AND THEN AMEND THE SPENDING PLAN
TO CHANGE THE USES IN 2022 AND
CONTINUE AT A SIMILAR LEVEL IN
FUTURE YEARS.
AND THEN FINALLY, TO TAKE
NO ACTION.
>> OKAY.
COLLEAGUES, IF YOU WANT MORE
EXAMPLES OF THE $3.7 MILLION
TOTAL TO, THEY'RE BULLETED ON
PAGE 21 OF THE MEMO IN FRONT OF
YOU.
I THINK THERE'S PROBABLY
AGREEMENT THAT THERE'S NEED FOR
INVESTMENTS IN CREATING
STABILITY IN TERMS OF PERSONNEL
AT THE HOMELESSNESS AUTHORITY,
MAINTAIN TRADITIONAL HOUSING
SERVICES, AND ALL OF THESE
THINGS ARE THINGS THE COUNCIL
FUNDED IN THE PAST.
FINDING A DIFFERENT REVENUE
SOURCE AND MORE APPROPRIATE
SOURCE FOR SOME OF THESE THINGS
IS WHERE I THINK WE SHOULD HEAD
TO MAINTAIN THE INTEGRITY OF
JUMP START.
AND THERE'S CONVERSATIONS
COUNCILMEMBER LEWIS AND GONZCEZ
AS MEMBERS OF THE REGIONAL
HOMELESSNESS AUTHORITY WILL
WEIGH IN IN THE FUTURE IN THE
UPCOMING DAYS TO TALK ABOUT THE
TRANSITION AND WHERE THE CITY
PRIORITY INVESTMENTS GO AS WE
HAND THE RESPONSIBILITY TO THE
REGIONAL HOMELESSNESS AUTHORITY.
I WILL BE LOOKING TO YOU ALL TO
FILL IN THE QUESTIONS ABOUT THE
STABILITY AND THE SOURCE FOR
THOSE INVESTMENTS AS WE HAVE
POLICY DISCUSSIONS COMING
TOMORROW ON HOMELESSNESS.
SO I LOOK FORWARD TO HAVING
THOSE DISCUSSIONS WITH YOU.
AGAIN, AS IT RELATES TO
DEVIATIONS FROM THE SPEND PLAN,
VERY MUCH CORE TO OUR
CONVERSATIONS OVER THE NEXT
MONTH AND A HALF WILL BE TO
MAINTAIN THE INTEGRITY OF THE
SPEND PLAN AS THE COUNCIL
UNANIMOUSLY PASSED.
.
>> AND THAT WRAPS UP MY PORTION.
UNLESS THERE ARE FURTHER
QUESTIONS, THANK YOU FOR THE
OPPORTUNITY TO PRESENT THIS
INFORMATION THIS MORNING.
AND HAPPY TO PROVIDE ASSISTANCE
IN FUTURE WEEKS IF THE
COUNCILMEMBERS HAVE QUESTIONS
ABOUT INFORMATION CONTAINED
WITHIN THE MEMO ATTACHED TO THE
AGENDA.
>> OKAY.
TOM, THANK YOU FOR THE
PRESENTATION AND THE THOROUGH
WALK THROUGH OF THE REVENUE
SOURCES.
I AM NOT SEEING ADDITIONAL
HANDS.
I KNOW THAT COUNCILMEMBERS WILL
HAVE THE FOLLOW-UP QUESTIONS.
A LOT OF THE CONVERSATION WAS
ORIENTING US TO THE PROPOSED
BUDGET AND IDENTIFYING THE
REVENUE SOURCES FOR THE PROPOSED
USES AND PRIORITIES AS THE MAYOR
HAS OUTLINED.
AS WE GET INTO THE CONVERSATION
THIS AFTERNOON AND OVER THE NEXT
TWO DAYS, THIS IS A HELPFUL
FOUNDATION FOR US TO BE ABLE TO
ASK QUESTIONS ABOUT THE PRIORITY
INVESTMENTS AND WHERE REVENUE IS
BEING USED SO THAT WE CAN CRAFT
OUR AMENDMENTS AND DRAFT OUR OWN
COUNCIL BUDGET DOCUMENT THAT
WILL BE THE FINAL PRODUCT FOR
CONSIDERATION FOR THE 2022
CALENDAR YEAR BUDGET.
WITH THAT, I'M NOT SEEING
ADDITIONAL HANDS.
WE'RE
ADJOURNING A LITTLE BIT EARLY.
YOU WILL HAVE ALMOST A TWO-HOUR
RECESS.
WE WILL COME BACK AT 2:00 P.M.
SO THAT WE CAN WRAP UP THE
DISCUSSION.
IF THERE'S NO OBJECTION,
TODAY'S SELECT BUDGET COMMITTEE
MEETING WILL BE IN RECESS UNTIL
2:00 P.M.
HEARING NO OBJECTION,
THANK YOU SO MUCH.
LOOKING FORWARD TO THE
PRESENTATION ALONG WITH ECONOMIC
DEVELOPMENT.
SEE YOU AT 2:00 P.M.
THANKS,
ALL.