>> WE ARE RECORDING.
>> GOOD MORNING.
THANKS FOR JOINING THIS MEETING.
IT IS APRIL 20th, 2022.
THE TIME IS 9:30 A.M.
I AM TERESA MOSQUEDA.
PLEASE CALL THE ROLE.
>> COUNCIL MEMBER HERBOLD?
>> HERE.
>> COUNCILMEMBER PEDERSEN?
>> HERE.
>> COUNCILMEMBER NELSON?
>> HERE.
>> COUNCILMEMBER NELSON?
COUNCILMEMBER LEWIS?
>> HERE.
>> THANKS FOR JOINING US TODAY.
WE HAVE ANOTHER PACKED AGENDA.
TODAY IS A FOCUS ON ALL THINGS
BUDGET.
WE WILL HAVE A RESOLUTION
MODIFYING THE TEMPLATE FOR
REGULAR PAYMENTS OF PLANS AND
AN ORDINANCE FOR YOUR
CONSIDERATION.
WE WILL HAVE A DISCUSSION AND
POSSIBLE VOTE.
THIS IS A CARRYOVER ITEM FROM
THE LAST COMMITTEE MEETING.
I APPRECIATE THE DETAIL THAT
YOU TOOK TO LOOK THROUGH THE
PRESENTATION AND INFORMATION
THAT WAS PROVIDED FROM THE
CENTRAL STAFF IN THE LAST
MEETING.
TODAY WE WILL HAVE A CHANCE TO
WALK TO THAT WITH OUR CENTRAL
STAFF TEAM.
WE WILL HAVE A SUMMARY FROM T█H
REVENUE FORECAST COUNCIL THINGS
TO OUR NEW DIRECTOR OF THE
ECONOMIC AND REVENUE FORECAST
OFFICE.
DR. NOBLE, THANK YOU FOR BEING
WITH US.
THEN WE WILL HAVE AN UPDATE ON
ALL OF THE REVENUE ITEMS FROM
THE BUDGET OFFICE.
THE COMBINATION OF THOSE TWO
REPORTS WILL MAKE UP THE FULLER
PICTURE OF THE FORECAST
PRESENTED AT THIS POINT IN 2022
AS WE BEGIN TO THINK ABOUT THE
2023 AND 2024 BUDGET.
ON OUR AGENDA WE WILL HAVE AN
UPDATE ON THE SEATTLE RESCUE
PLAN SPENDING.
THIS IS OUR UPDATE ON THE
SEATTLE RESCUE PLAN ACT
IMPLEMENTATION AND SPENDING.
I WANT TO THANK THE CITY TEAM
FOR SENDING US MONTHLY UPDATES
AND BEING PRESENT FOR THESE
QUARTERLY UPDATES TO REPORT
OUT.
NOT JUST SOME ITEMS THAT HAVE
BEEN SPENT OR ENCUMBERED BUT
THE DETAILED PROCESS FOR HOW TO
GET THE REST OF THE DOLLARS OUT
THE DOOR IN ORDER TO ADDRESS
THE CRISIS THAT HAS CONTINUED
TO UNFOLD, GIVEN THAT COVID
PANDEMIC IS STILL VERY MUCH
WITH US.
IF THERE IS NO OBJECTION
TODAY'S AGENDA WILL BE ADOPTED.
TODAY'S AGENDA IS ADOPTED.
A VERY BRIEF UPDATE FROM THE
CHAIR'S REPORT.
TODAY IS APRIL 20th, OTHERWISE
KNOWN AS 4/20.
MANY PEOPLE CELEBRATE THE ROLE
THAT CANNABIS PRODUCTS HAVE HAD
IN THEIR LIFE.
I WANT TO TAKE A MOMENT TO
REMIND THE DEEPER MEANING AND
MESSAGE BEHIND A DAY LIKE THIS.
NO ONE SHOULD CONTINUE TO BE
INCARCERATED FOR INTERACTIONS
AND PREVIOUS ARRESTS RELATED TO
CANNABIS.
WE SEND THAT MESSAGE OF
SOLIDARITY ACROSS THE NATION AS
MANY PEOPLE ARE INCARCERATED
FOR THE ACTIONS AND
ENTANGLEMENT THEY HAVE HAD WITH
LAW-ENFORCEMENT DUE TO CANNABIS
PRODUCTS.
WE ALSO WANT TO REMIND YOU OF
THE DEEPER MEANING AS MANY
PEOPLE ARE STILL CELEBRATING
TODAY AND CONSUMING CANNABIS
PRODUCTS THERE ARE MANY PEOPLE
SITTING IN JAIL CELLS AROUND
THIS COUNTRY.
WE ARE UNITING FOR THE CALL FOR
THESE INDIVIDUALS TO NOT ONLY
BE FREED FROM INCARCERATION,
BUT AS WE TALKED ABOUT IN THIS
COMMITTEE AND THE STATE,
CONTINUE OUR EFFORTS TO MAKE
SURE THERE ARE NO CANNABIS
RELATED CHARGES ON ANYBODY'S
RECORD.
ACCORDING TO A 2020 FORBES
ARTICLE AN ESTIMATED 40,000
PEOPLE TODAY ARE INCARCERATED
NATIONALLY DUE TO CANNABIS
OFFENSES.
EVEN AS THE OVERALL LEGAL
CANNABIS INDUSTRY IS BOOMING.
ONE STATE AFTER ANOTHER IS
LEGALIZING AND CANNABIS
COMPANIES ARE MAKING HEALTHY
PROFITS.
AGAIN, THAT'S FROM A FORBES
ARTICLE.
THIS IS THE 10 YEAR ANNIVERSARY
OF CANNABIS BECOMING LEGAL IN
WASHINGTON STATE. WITH AN
INDUSTRY THAT IS NOW 10 YEARS
OLD IN WASHINGTON STATE WE
STILL SEE THE RAMIFICATIONS OF
THE WAR ON DRUGS. IN OUR CITY,
OUR COMMUNITIES, AND OUR STATE.
IN OUR LAST COMMITTEE MEETING
THE WASHINGTON STATE LIQUOR AND
CANNABIS BOARD PRESENTED DATA
THAT COME UP WHEN WE LOOK AT
THE DEMOGRAPHICS OF THE ENTIRE
INDUSTRY, FROM RETAIL STORE
OWNERS TO PRODUCERS AND
PROCESSORS, THE DATA SHOWS US
THE MAJORITY OF OWNERSHIP IS
NOT BY BLACK AND INDIGENOUS
PEOPLE OF COLOR.
TODAY WE SEND THIS MESSAGE OF
SOLIDARITY FOR FOLKS WHO ARE
CONTINUING TO WORK TO MAKE SURE
THERE ARE NO PEOPLE
INCARCERATED DUE TO CANNABIS,
THAT WE CONTINUE TO EXPUNGE ALL
RECORDS RELATED TO CANNABIS
ACROSS OUR STATE AND COUNTRY.
I WILL BE OUT CELEBRATING THE
WORKERS, THE FRONT-LINE WORKERS
WHO ARE WORKING IN INDUSTRIES
THAT ARE LOOKING TO CONTINUE TO
EXPAND UPON OPPORTUNITIES FOR
WORKFORCE TRAINING, FOR GREATER
SAFETY, AND FOR OPPORTUNITIES
TO HAVE CAREER LADDERS SO THAT
THEY CAN CONTINUE TO BE PART OF
THE GROWING INDUSTRY AND
CANNABIS.
FOR THOSE THAT DO TAKE PART
PLEASE REMEMBER THAT YOU CAN
BUY FROM UNION STORES.
SIMILARLY HOW STARBUCKS IS
UNIONIZING, WE CONTINUE TO SEE
CANNABIS WORKERS IN OUR CITY IN
THEIR ORGANIZING EFFORTS AS
WELL.
CONGRATULATIONS TO THEM AND I
LOOK FORWARD TO CONTINUING TO
WORK WITH ALL OF YOU IN THE
MAYOR'S OFFICE AS WE CONSIDER
POSSIBLE LEGISLATION IN OUR
COMMITTEE.
I WANT TO THANK THE MAYOR'S
OFFICE, AND THE TEAM, WHO HAVE
BEEN WITH US FOR THE LAST THREE
MONTHS AS WE CONSIDER POSSIBLE
STRATEGIES TO DISCUSS THE
LINGERING EFFECT AND THE
DISPROPORTIONATE EFFECTS OF THE
WAR ON DRUGS AND HOW WE CAN
CREATE MORE EQUITY.
WE LOOK FORWARD TO CONTINUING
TO WORK WITH THE MAYOR'S TEAM
TO PROVIDE YOU WITH UPDATES ON
THE DRAFTING.
WE KNOW THAT THERE WILL BE MANY
CONVERSATIONS TO BE HAD AMONGST
COUNSEL, WITH THE DEPARTMENTS
AND STAKEHOLDERS.
THIS IS GROUNDBREAKING FOR US
TO BE ABLE TO ENHANCE OUR
POLICIES HERE.
WE ARE GOING TO TAKE SOME TIME
TO MAKE SURE WE GET THAT RIGHT
WITH THE MAYOR'S OFFICE.
AT THIS TIME WE ARE GOING TO
OPEN UP TO PUBLIC COMMENT.
WE HAVE TWO PEOPLE SIGNED UP
FOR PUBLIC COMMENT.
I WILL GO AHEAD AND ALLOW FOR
TWO MINUTES FROM EACH OF THE
SPEAKERS.
YOU HAVE THE FULL TIME.
FOR FOLKS WHO ARE DIALING IN
YOU ARE GOING TO HEAR A CHIME
THAT SAYS, YOU HAVE BEEN ON
MUTED.
THAT IS YOUR INDICATION TO HIT
STAR AND SIX.
YOU WILL HEAR A BELL.
THAT IS YOUR 10 SECOND WARNING
AND YOU NEED TO WRAP IT UP.
IF YOU HAVE NOT FINISHED WITH
YOUR COMMENTS AND WOULD LIKE TO
SHARE MORE WITH US, PLEASE
EMAIL US AT COUNCIL.SEATTLE.GOV.
OR THE OTHER OPTIONS PRESENTED
ON TODAY'S AGENDA.
PUBLIC COMMENT IS OPEN AND THE
FIRST TWO SPEAKERS SIGNED UP
ARE DAVID HINES AND ALLIE.
GOOD MORNING, DAVID. DAVID, YOU
HAVE A FULL TWO MINUTES.
YOU ARE WELCOME TO START
WHENEVER YOU ARE READY.
>> THANK YOU.
DAVID HAYNES, DISTRICT 7. WE
NEED BETTER OVERSIGHT OF TAX
DOLLARS.
IT'S OUTRAGEOUS CITY COUNCIL
REDIRECTED AMERICAN RESCUE PLAN
DOLLARS TO GIVE CERTAIN SKIN
COLOR AS A BUSINESSES -- AND A
GEORGE FLOYD PROTESTERS ALL OF
THE MONEY.
THE COUNCIL COMES UP SHORT ON
HELPING THE HOMELESS SHELTER,
CAUSING UNNECESSARY SUFFERING
THROUGH A THIRD WINTER OF
COVID.
AND THE HOMELESS CRISIS, USED TO
BUY OFF THE MANAGEMENT SERVICE
PROVIDERS WHO DONATE AND
FINANCE THE ELECTION APPARATUS
FOR DEMOCRATS ON COUNSEL.
IT IS OBVIOUS THEY ARE RACIST
AND ENDANGERING OUR PUBLIC
COMMUNITY AND FURTHER CAUSING A
HOMELESS CRISIS.
ALL WHILE A PUBLIC HEALTH
HAZARD THREATENS THE WELL-BEING
OF RESIDENTS AND --
INCONSIDERATE, DISRESPECTFUL
PEOPLE WHO ARE A CONSTANT
THREAT.
IN THE CELEBRATION OF 4/20 I
NEED TO REMIND YOU ALL THAT WE
ONLY LEGALIZED PROPER GROWN
MARIJUANA.
NOT IN PROPER GROWN.
WE NEVER LEGALIZED CRACK, METH,
OR HEROIN ON ANY LEVEL DESPITE
WHAT THE POLICE CHIEF AND OTHER
LIBERALS CLAIM.
THAT HAS ROOTED OUR SOCIETY IN
-- CIVIL WAR.
THE CITY COUNCIL SHOULD
RECONSIDER WHAT THEY DID WITH
THE AMERICAN RESCUE PLAN
DOLLARS.
BRING SOME OF THAT MONEY BACK
AWAY FROM THEIR PROTESTERS AND
HELP ALLEVIATE THE UNNECESSARY,
OPPRESSIVE SUFFERING OF
INNOCENT PEOPLE WHO ARE BEING
GRACELESSLY DISCRIMINATED
AGAINST AND BEING FORSAKEN BY
THE ACTUAL SERVICE PROVIDERS
THAT ARE ONLY LOOKING FOR
CERTAIN SKIN COLORS TO HELP TO
MANIPULATE DATA PERCENTAGES.
IT'S NOT FAIR THAT THIS IS
SEVEN YEARS OF SUFFERING AND
THE CITY COUNCIL STILL COMES UP
SHORT WHEN YOU HAVE HAD TENS OF
MILLIONS OF DOLLARS. YOU
SQUANDERED TENS OF MILLIONS OF
DOLLARS BUYING A REELECTION
APPARATUS.
YOU ALL SHOULD BE FBI
INVESTIGATED.
THE MEDIA IS NOT GOING TO KEEP
YOU HONEST, THAT'S FOR CERTAIN.
>> THANK YOU.
THE NEXT PERSON ASSIGNED TO
SPEAK IS NOT PRESENT.
ARE YOU PRESENT WITH US?
ALLIE?
JUST DOUBLE CHECKING HERE.
OKAY.
I ALSO WANT TO MAKE SURE I AM
SENDING MESSAGES.
DAVID, THANKS AGAIN FOR DIALING
INTO SPEAK.
DAVID HINES, THIS IS YOUR FIRST
WARNING.
WE DO NOT TOLERATE FOLKS HAVING
THEIR CHARACTER IMPUGNED.
YOU HAVE REPEATEDLY DONE THIS
TO COUNCIL MEMBERS AND STAFF.
WE WILL TAKE YOUR PUBLIC
COMMENT IN THE FUTURE BUT PLEASE
DO NOT LEVY SUCH ACCUSATIONS
AGAINST COUNCILMEMBERS OR
CENTRAL STAFF.
I'M NOT SEEING ANY ADDITIONAL
PUBLIC COMMENT SO AT THIS TIME
WE WILL CLOSE PUBLIC COMMENT.
PLEASE SEND ANY ADDITIONAL
PUBLIC COMMENTS TO THE COUNCIL.
LET'S MOVE INTO ITEM NUMBER ONE
ON THE AGENDA.
CAN YOU PLEASE READ ITEM NUMBER
ONE INTO THE RECORD?
>> AGENDA ITEM NUMBER ONE,
RESOLUTION 32049.
A RESOLUTION MODIFYING THE
TEMPLATE FOR REGULAR PAYMENT OF
CLAIMS ORDINANCES.
>> THANK YOU VERY MUCH.
COLLEAGUES, THANK YOU FOR YOUR
FLEXIBILITY IN HAVING THIS ITEM
MOVED TO TODAY.
THIS IS A PRESENTATION FROM ALY
PENNUCCI AND TOM MIKESELL OF
CENTRAL STAFF.
THIS ALLOWS US TO CREATE A NEW
TEMPLATE FOR GREATER FINANCIAL
TRANSPARENCY.
IT ACTUALLY FOLDS IN VERY
NICELY TO THE THEME OF TODAY'S
DELIBERATIONS FOR THE FINANCE
COMMITTEE.
WE ARE GOING TO BE SPENDING A
LOT OF TIME FOCUSED ON
FINANCIAL TRANSPARENCY TODAY.
I HOPE YOU GOT YOUR BUDGET
GOING ON TODAY.
-- FOLLOWING OUR MARCH 16th
COMMITTEE MEETING WE HAD A
PREVIEW OF THE CONVERSATION WE
ARE ABOUT TO HAVE TODAY.
WE NOW HAVE THE RESOLUTION IN
FRONT OF US TO CONSIDER
UPDATING THE TEMPLATE FROM OUR
REGULAR PAYMENT OF CLAIMS ITEM.
THIS IS ITEM THAT ROUTINELY
APPEARS AT THE TOP OF OUR FULL
COUNCIL AGENDA.
THIS TEMPLATE HAS NOT BEEN
UPDATED IN SOME TIME.
THE RESOLUTION ATTACHED HERE IS
FOR US TO UPDATE THE TEMPLATE
FOR REGULAR PAYMENTS AND CLAIMS
AND TO MAKE SURE WE PROVIDE KEY
STRATEGIES TO ENSURE
TRANSPARENCY.
IT HAS BEEN 20 YEARS SINCE THIS
DOCUMENT HAS BEEN UPDATED.
THE DOCUMENT THAT WE ARE
CURRENTLY USING AS WELL
REFERENCES A NOW DEFUNCT AUDIT
COMMITTEE THAT REVIEWED THE
PAYMENT OF CLAIMS.
SO IT'S BOTH GOOD PRACTICE,
GOOD TRANSPARENCY, AND A GOOD
CLEANUP OPTION FOR US TO HAVE
THE LEGISLATION IN FRONT OF US
AND THE TEMPLATE ATTACHED TO
PROVIDE GREATER TRANSPARENCY.
NOT ONLY TO MEMBERS OF THE
PUBLIC BUT ALSO TO MAKE SURE WE
ARE WORKING CLOSELY WITH THE
CITY BUDGET OFFICE AND ALL
COUNCILMEMBERS SO WE HAVE A
CLEARER SENSE OF WHAT IS
INCLUDED IN THIS PAYMENT CLAIMS
MATERIAL.
AGAIN, THANKS TO ALY PENNUCCI
AND TOM MIKESELL ON YOUR WORK
WITH CENTRAL STAFF TO WALK US
THROUGH THIS NEW TEMPLATE.
THANKS AS WELL TO THE CITY
BUDGET OFFICE AND FINANCE
DIRECTOR , DIRECTOR GLENN LEE,
HE HAD IN OPPORTUNITY TO UPDATE
US ON THIS TEMPLATE.
I WILL HEAD OVER TO ALY
PENNUCCI.
>> GOOD MORNING, CHAIR
MOSQUEDA AND COUNCILMEMBERS.
I AM ALY PENNUCCI OF CENTRAL
STAFF.
I AM JOINED BY TOM MIKESELL.
I WILL JUST JUMP INTO THE
PRESENTATION TODAY.
WE ARE BOTH AVAILABLE SHOULD
THERE BE ANY QUESTIONS.
IS MY SCREEN VISIBLE OKAY?
MY COMPUTER JUST FLASHED.
OKAY.
GREAT.
TODAY WE WILL BRIEFLY DESCRIBE
RESOLUTION 32049.
WHICH WOULD UPDATE THE
TEMPLATE USED FOR THE REGULAR
PAYMENT OF CLAIMS BILLED.
CHAIR MOSQUEDA PROVIDED A GOOD
SUMMARY.
THIS IS A RELATIVELY
STRAIGHTFORWARD RESOLUTION
THAT REQUESTS THAT THE
DEPARTMENT OF FINANCE AND
ADMINISTRATIVE SERVICES UPDATES
THE TEMPLATE FOR THE PAYMENT OF
CLAIMS REGULARLY ACTED ON IN
CITY COUNCIL MEETINGS.
THE UPDATE IS THE FIRST SINCE
1999.
IT ADDS LANGUAGE STATING THAT
THE PAYMENTS AND CLAIMS
PRESENTED BY THE EXECUTIVE TO
THE CITY COUNCIL ARE PRESENTED
WITH CURRENT BUDGET AUTHORITY.
IT UPDATES AND MAKES EXPLICIT
REFERENCES TO STATE LAW RELATED
TO EXPENDITURES AND ALSO REMOVES
REFERENCES RELATED TO THE
OUTDATED AUDITING COMMITTEE.
SINCE LAST COMMITTEE MEETING
CENTRAL STAFF DID MEET WITH THE
FINANCE DIRECTOR TO GO OVER THE
PROPOSED CHANGES AND THE TEAM
THAT REGULARLY PRODUCES THE
CLAIMS BILL.
THEY DON'T HAVE ANY CONCERNS
ABOUT THIS UPDATED TEMPLATE
REQUESTED BY THE COUNCIL.
THE NEXT THREE SLIDES, I'M NOT
GOING TO SPEND TIME WITH
WALKING THROUGH IT LINE BY
LINE.
FOR THE RECORD IT PROVIDES
DETAILS ON THE SUBSTANTIVE
CHANGES INCLUDED IN THE
ATTACHMENT FOR THE TEMPLATE FOR
REFERENCE, AND FOR
MEMORIALIZING THE LEGISLATIVE
RECORD.
BEFORE THE COMMITTEE IS THE
RESOLUTION THAT WOULD FORMALIZE
THE REQUEST.
FAS HAS PREPARED TO START USING
THE REVISED TEMPLATE.
UNLESS TOM HAS ANYTHING TO ADD
I WILL LEAVE IT THERE.
I'M HAPPY TO ANSWER ANY
QUESTIONS.
>> ALL RIGHT.
COLLEAGUES, THANK YOU SO MUCH
FOR QUESTIONS.
YOU CAN GO AHEAD AND TAKE DOWN
THE PRESENTATION UNLESS THE
COUNCILMEMBERS WOULD LIKE TO
REFER TO A CERTAIN SLIDE.
COUNCILMAN PEDERSEN, INC.
YOU FOR JUMPING IN.
>> THANK YOU FOR MAKING UPDATES
TO THIS TEMPLATE.
WHEN I FIRST STARTED IN THE
POSITION I HAD A QUESTION ABOUT
THIS LEGISLATION.
I APPRECIATE THE UPDATE.
THE REFERENCE, IS THAT
SOMETHING THAT WOULD BE UPDATED?
I'M ASSUMING THAT WOULD CHANGE
OVER TIME.
>> THANK YOU, COUNCILMEMBER,
FOR THE QUESTION.
THE TEMPLATE UPDATES, IT
DOESN'T ACTUALLY REQUIRE
LEGISLATION TO UPDATE THE
TEMPLATES.
WE WERE REALLY FOCUSED ON THE
LANGUAGE THAT WOULD ALWAYS BE
INCLUDED, REFERENCES TO STATE
LAW, THE CHARTER, THAT KIND OF
THING.
IF AND WHEN THE CITY UPDATES,
IF PEOPLE STILL HAVE THE
SYSTEM, FAS CAN MAKE THAT
CHANGE WITHOUT REQUIRING AN
UPDATE.
WE COULD MEMORIALIZE AT THAT
DAY.
-- FEEL OKAY ABOUT THEM
UPDATING THE TEMPLATE FOR
FUTURE USE.
>> THANK YOU.
>> THANK YOU AND THANKS AGAIN
FOR YOUR INTEREST IN THIS
UPDATE AND GREATER TRANSPARENCY
HERE.
I THINK IT'S A GOOD POINT TO
SAY THAT IT'S A GOOD THING FOR
ALL OF US.
THANKS AGAIN FOR YOUR QUESTION.
COLLEAGUES, ANY ADDITIONAL
QUESTIONS OR COMMENTS?
TOM, ANYTHING YOU WOULD LIKE TO
ADD?
WE WILL AGAIN APPLAUD YOUR
WORK.
THANKS AGAIN TO TOM. -- WORKING
WITH CENTRAL STAFF ON THIS AND
FAS.
IF THERE ARE NO ADDITIONAL
QUESTIONS I THINK THIS ITEM IS
READY FOR A VOTE.
I LOOK FORWARD TO GETTING IN
THE WEEDS.
I WILL TRY TO REFRAIN FROM
SAYING THAT TODAY.
THIS ALLOWS US TO GET INTO THE
WEEDS A LITTLE MORE AND I
APPRECIATE ALL OF THE WORK THAT
HAS BEEN DONE TO BRING THIS
RESOLUTION TO US TODAY AND THE
COLLABORATION WITH THE
EXECUTIVE TEAM AS WELL.
I MOVE THE COMMITTEE RECOMMENDS
A PASS OF RESOLUTION 32049.
IS THERE A SECOND?
>> SECOND.
>> IT HAS BEEN MOVED AND
SECONDED.
ANY COMMENTS OR QUESTIONS?
I'M HEARING NONE.
PLEASE CALL THE ROLL ON THE
PASSAGE OF RESOLUTION 32049.
>> COUNCILMEMBER HERBOLD?
>> YES.
>> COUNCILMEMBER PEDERSEN?
>> YES.
>> COUNCILMEMBER NELSON?
>> AYE.
>> COUNCILMEMBER LEWIS?
>> YES.
>> NONE OPPOSE.
>> THANK YOU VERY MUCH,
COLLEAGUES.
THE COMMITTEE RECOMMENDATION
THAT IT BE PASSED WILL BE SENT
ON APRIL 26th FOR THE FINAL
VOTE.
THANK YOU SO MUCH FROM ALY
PENNUCCI AND TOM MIKESELL.
SORRY WE DIDN'T GET TO THIS IN
THE LAST MEETING BUT IT'S A
GREAT INTRODUCTION TO OUR
BUDGET RELATED ITEMS FOR TODAY
SO THANKS FOR GETTING US
STARTED . MADAM CLERK, READ
ITEM NUMBER TWO INTO THE RECORD.
>> APRIL REVENUE FORECAST
UPDATE FOR BRIEFING AND
DISCUSSION.
>> WONDERFUL.
TODAY WE HAVE WITH US DIRECTOR
BEN NOBLE.
WE WILL CONTINUE TO HAVE ALY
PENNUCCI AND TOM MIKESELL
AVAILABLE FOR US AS WELL.
AS WELL AS POSSIBLE WRAPUP
COMMENTS.
JUST TO SET THE STAGE HERE FOR
A QUICK SECOND AS YOU WILL
RECALL ON FRIDAY, APRIL 8th, WE
HAD THE REVENUE FORECAST
COUNCIL MEETING.
THIS WAS THE FIRST COUNCIL
MEETING WHERE OUR NEW OFFICE OF
ECONOMIC AND REVENUE FORECAST,
DIRECTOR AND STAFF, PROVIDED A
REVISED FORECAST AND
RECOMMENDATION TO THE COUNCIL.
THIS IS AN UPDATE FOR NOT JUST
THE 2022 YEAR BUT WE ALSO HAD
THE OPPORTUNITY TO LOOK AT THE
OTHER YEARS AS WELL AND FACTOR
IN HOW THAT REVENUE FORECAST
MAY AFFECT OUR ABILITY TO CARRY
OUT DESIRED IMPLEMENTATION FOR
ITEMS. THIS YEAR AND TO HELP US
PLAN FOR THE 2023/2024 BUDGET
CYCLE.
A REMINDER THE ECONOMIC
FORECAST WAS CHAMPIONED BY OUR
COLLEAGUE, GONZALES.
WE DEVELOPED TRANSPARENCY
BETWEEN BRANCHES OF GOVERNMENT
AND ALSO WORKED WITH THE PUBLIC
TO CREATE GREATER
ACCOUNTABILITY AROUND OUR
FINANCIAL INSTITUTIONS.
I COSPONSORED THIS LEGISLATION
AS WELL BECAUSE I THINK THAT IT
IS REALLY CRITICAL FOR US TO BE
MODELS LIKE OTHERS HAVE.
WE NOW HAVE AN OFFICE JUST LIKE
KING COUNTY AND THE STATE
LEGISLATURE HAS.
AN INDEPENDENT OFFICE THAT
PROJECTS THE PORTION OF THE
CITY'S REVENUE TO LOOK AT THE
VARIOUS REVENUE LINES AND
PROJECTS AND OTHER PORTIONS
FOCUSED LARGELY ON CITY
INTERNAL PROJECTS.
DURING OUR APRIL 8th FORECAST
COUNCIL WE HAD THE OPPORTUNITY
TO HEAR REVENUE UPDATE
PRODUCTIONS. SINCE IT WAS
TELEVISED ON THE SEATTLE
CHANNEL I DON'T THINK I'M
GIVING AWAY ANY SURPRISES TO
SAY THAT THE NUMBERS GIVE US
HOPE THAT SEATTLE'S ECONOMY AND
OUR RECOVERY, INCLUDING OUR
PROGRESSIVE REVENUE, AND THE
INVESTMENTS THAT WE MADE. AS
COUNCILMEMBER HERBOLD TALKS
ABOUT A LOT, THE SHADOW
PANDEMIC AND INVESTMENTS
DIRECTLY INTO WORKERS VIA CASH
SYSTEMS AND DIRECTLY INTO OUR
SMALLEST BUSINESSES.
ALL OF THOSE WERE SHOWING
POSITIVE SIGNS FOR HOW WE CAN
RECOVER FROM THIS PANDEMIC.
THERE ARE CAVEATS.
I KNOW DIRECTOR NOBLE WILL WALK
US THROUGH THOSE CAVEATS HERE
IN JUST A MOMENT.
COST, INFLATION, INSTABILITY ON
PROJECTS, THE ONGOING BUDGET
DEFICIT THAT WE ARE LOOKING TO
ADDRESS.
I SHOULD SAY IT'S THE BUDGET
GAP THAT WE ARE WORKING TO
ADDRESS.
THERE IS SHORT-TERM REVENUE
THAT HAS BEEN USED OVER THE
YEARS.
I'M DELIGHTED TO HAVE THE TEAM
HERE WITH US FROM THE OFFICE OF
REVENUE AND ECONOMIC FORECAST
AND DIRECTOR NOBLE WILL BE ABLE
TO WALK US THROUGH THIS ALONG
WITH THE CENTRAL STAFF OFFICE.
THANK YOU TO ALY PENNUCCI AND
TOM MIKESELL FOR THEIR CLOSE
COORDINATION WITH THE OFFICE.
WE WILL HAVE AN UPDATE FROM THE
DIRECTOR OF THE ECONOMIC
REVENUE OFFICE.
I WANT TO THANK DIRECTOR NOBLE
FOR SWITCHING HATS TO BE IN
THIS NEW ROLE.
AND WHAT YOU HAVE DONE WITH US
ON THE REVENUE FORECAST COUNCIL
TO GET US THROUGH THAT
PROJECTION ON APRIL 8th.
WE WILL THEN HAVE A
PRESENTATION IN OUR NEXT ITEM
ON THE CITY BUDGET OFFICE.
FROM THE CITY BUDGET OFFICE.
THEN YOU WILL HAVE A CHANCE TO
HEAR FROM THE CITY BUDGETS
DIRECTOR, DINGLEY, ON THE
FORECAST.
NOT ALL REVENUE LINES GO TO THE
REVENUE OFFICE.
IT'S IMPORTANT FOR US TO HAVE
THE INDEPENDENT OFFICE OF
ECONOMIC REVENUE FORECAST
PRESENTED THEIR INFORMATION.
WE WILL THEN HAVE THAT FOLLOWED
BY THE CITY BUDGET OFFICE AND
THE FULLER PICTURE WILL BE AT
THE END OF THOSE TWO
PRESENTATIONS.
THANK YOU TO THE CENTRAL STAFF
FOR WHAT THEY HAVE DONE TO PULL
IT ALL TOGETHER TO TELL US WHAT
THIS MEANS.
NOT JUST FOR THE REST OF 20
TURNING TO EMMA AND NOT JUST
FOR 2023 AND 2024.
THEY WILL BE PROVIDING US WITH
AN OVERALL LOOK OVER THE NEXT
SIX YEARS WHEN WE RECONVENE AT
THE MAY 4th MEETING.
WITHOUT FURTHER ADO LET ME TURN
IT DIRECTLY OVER TO DIRECTOR
BEN NOBLE FOR OUR NEW
INDEPENDENT OFFICE OF ECONOMIC
AND REVENUE FORECAST.
THANK YOU, DIRECTOR BEN NOBLE.
>> THANK YOU, CHAIR MOSQUEDA.
THANK YOU FOR THE INTRODUCTION.
A PLEASURE TO BE HERE AND A
PLEASURE TO BE WORKING IN THE
NEW ROLE OF THE ECONOMIC AND
REVENUE FORECAST.
THE PRESENTATION I HAVE FOR YOU
TODAY IS A SLOWLY COMPRESSED
VERSION OF THE ONE WE PROVIDED
TO THE FORECAST COUNCIL ON
APRIL 8th.
GIVEN YOUR TIMELINE AND HOW
PACKED THIS AGENDA IS I'M JUST
GOING TO DIVE INTO THAT
PRESENTATION.
INCLUDED IN THAT IS AN OVERVIEW.
LET ME SHARE THE SCREEN THE
RIGHT WAY.
THERE WE GO.
DIVING RIGHT IN.
THE PRESENTATION OUTLINE IS
WHAT I WAS TRYING TO GET TO.
THIS OUTLINE DESCRIBES THE
FORECAST PROCESS AS WELL.
OUR FORECASTING PROCESS IS A
TWO-STEP ONE.
THE FIRST TO DEVELOP AN
ECONOMIC FORECAST FOR THE REGION
, IN PARTICULAR, ADDRESSING THE
FUNDAMENTAL VARIABLES LIKE
EMPLOYMENT AND INCOME. HAVING
DEVELOPED A MULTIYEAR FORECAST
FOR THE ECONOMY WE THEN USE THE
OUTPUTS OF THAT MODEL TO
DEVELOP A FORECAST OF REVENUE.
WE HAVE HISTORICAL DATA THAT
SHOWS HOW WE CAN MONITOR INCOME
AND EMPLOYMENT WITHIN THE
REGION.
WE START WITH THE NATIONAL
FORECAST.
WE HAVE A NATIONAL FORECAST
COMPANY, IHS MARKET, WHICH WE
PURCHASE FORECASTING SERVICES
FROM.
THAT HAS BECOME THE BASIS FOR
OUR REGIONAL FORECAST AND FOR
OUR REVENUE FORECAST.
AS WE MOVE THROUGH THERE ARE
ACTUALLY THREE DIFFERENT
SCENARIOS THAT WE WILL MODEL OUT
AND WE WILL MAKE A
RECOMMENDATION ABOUT WHICH ONE
OF THOSE SCENARIOS ARE MOST
IMPORTANT FOR THE CITY BUDGET
PROCESS.
DIVING IN, STARTING WITH THE
ECONOMIC UPDATE, WE NEED TO
LOOK AT IT AT AN INTERNATIONAL
LEVEL TO UNDERSTAND WHAT'S
HAPPENING.
EVEN THE REGIONAL ECONOMY.
WE SORT OF ANTICIPATED THAT WE
WOULD BE IN THE PHASE WE ARE
NOW OF COVID.
STEPPING BACK SOME AND HAVING
THE ECONOMY ENGAGED IN ROBUST
RECOVERY.
SOME THINGS HAVE INTREPID THAT
PROCESS, THAT IS WHAT WE
EXPECTED.
IN PARTICULAR THE WAR IN
UKRAINE.
I WILL TALK ABOUT IT HERE IN
TERMS OF ITS ECONOMIC
CONSEQUENCES.
IT'S HUMAN CONSEQUENCES ARE
PROBABLY MORE IMPORTANT. BUT IN
CONTEXT OF THIS WORK WE REALLY
DO NEED TO THINK ABOUT ITS
ECONOMIC IMPACT.
THEY ARE VERY SIGNIFICANT.
SUPPLY-CHAIN DISRUPTIONS ARE
CONSTRAINING MANUFACTURING, AS
NOTED HERE.
FOOD PRODUCTION, BOTH UKRAINE
AND RUSSIA WERE MAJOR FOOD
COMMODITY PRODUCERS, CREATING
ESCALATING PRICES. WE ONLY NEED
TO GO TO THE LOCAL GAS STATION
TO SEE HOW ENERGY PRICES ARE
HITTING HOME AND HITTING
PERSONAL BUDGETS AS WELL.
THOSE ARE ALL ISSUES THAT ARE
CREATING SIGNIFICANT
DISRUPTIONS.
YOU CAN SEE IN THE NATIONAL
FORECAST AND OUR FORECAST.
YOU CAN SEE WHERE THE WAR IN
UKRAINE MAY BE TAKING US IN
TERMS OF THE ECONOMIC IMPACT.
ONE THING WE DEFINITELY KNOW.
THERE IS AN INCREASE IN
INFLATION.
IT HAS RAPIDLY ACCELERATED.
SINCE WE HAVE DEVELOPED THIS
PRESENTATION THERE'S ANOTHER
MONTH FOR INFLATION DATA
RECORDED.
WE HIT A HIGH IN TERMS OF
TRENDS ON INFLATION.
CLEARLY THERE IS A GREAT DEAL
OF UNCERTAINTY AROUND UKRAINE.
WE WILL TALK MORE ABOUT THE
VARIOUS IMPACTS.
THAT ALL SAID, AS COVID WAS
WANING IN THE FALL AND INTO
THIS YEAR WE HAD SEEN
REMARKABLE RESILIENCY IN THE
ECONOMY OVER THE NATIONAL AND
LOCAL LEVEL.
THIS GRAPHIC HERE SHOWS THE
CHANGE IN EMPLOYMENT STARTING
JUST BEFORE COVID AND MEASURED
IN A PERCENTAGE TERM.
THERE'S THE BLUE LIGHT AT THE
NATIONAL LEVEL AND AN
ORANGE/RED LINE AT THE OTHER
LEVEL.
THE LIGHTER LINES ARE THE GREAT
RECESSION, AGAIN SHOWING THE
LOSS OF JOBS AND THE REGAINING
OF THOSE JOBS.
WE PUT THE HISTORIC ONE IN
THERE JUST TO GIVE YOU A SENSE
OF A TREND.
THERE'S A DRAMATIC DROP AS
THINGS SHUT DOWN WITH COVID AND
THEN A VERY STEEP RECOVERY.
INTERESTINGLY, AT A LOCAL LEVEL
WE HAD TRAILED SOME.
YOU CAN SEE OUR JOB REBOUND
LEVELS.
OVER THE SECOND HALF OF 2020,
WHICH WAS ESSENTIALLY YEAR ONE,
AND THEN INTO 2021, WE WERE
SOMEWHAT BELOW.
THE OBVIOUSNESS -- SOCIAL
DISTANCING AND THE LIKE.
WE APPROACH THE END OF LAST
YEAR, AGAIN WHICH IS YEAR TWO
ON THIS CHART.
AT A LOCAL LEVEL THE LOCAL
ECONOMY WAS DESCRIBED IN THE
TITLE, CATCHING UP.
WE ARE STILL DOWN IN TERMS OF
TOTAL JOBS IN THE AREA.
IT'S LESS THAN 2% AS OF
FEBRUARY.
WE ARE SEEING THE DYNAMIC OF
LABOR SHORTAGES HAS CREATED
BARGAINING POWER FOR WORKERS
AND WE HAVE SEEN INCREASING
WAGES AS WELL.
JUST A FOCUS ON THE REGION AND
THE ISSUE OF EMPLOYMENT.
AGAIN, WE ARE STILL DOWN IN
TERMS OF TOTAL JOBS.
WE ARE DOWN RELATIVE TO THE
BEGINNING OF COVID.
IN FACT 30,000 JOBS, AS THE RED
BAR HERE AT THE TOP SHOWS.
IT'S CERTAINLY TRUE THAT HE HAS
BEEN AN UNEVEN EXPERIENCE.
THE LEISURE AND HOSPITALITY
SECTORS, RESTAURANTS AND HOTELS
IN PARTICULAR HAVE CONTINUED TO
SUFFER.
THAT WOULD EXPLAIN THE JOB LOSS
WE HAVE EXPERIENCED.
WHAT YOU ALSO SEE IS THAT THERE
ARE SECTORS THAT HAVE BEEN
GAINING EMPLOYMENT.
PARTICULARLY PROFESSIONAL AND
BUSINESS SERVICES.
THE TECHNOLOGY SECTOR.
THEY HAVE BEEN PRODUCING AN
ACTUAL GROWTH OF JOBS AND THE
NET IMPACT OF THOSE IS, AGAIN,
THE LOSS OF 30,000 JOBS.
WITHOUT THE GROWTH IN THE
TECHNOLOGY SECTOR OBVIOUSLY THE
EMPLOYMENT IMPACT WOULD HAVE
BEEN LARGER HERE.
TALKING A LITTLE MORE ABOUT THE
NATIONAL ECONOMY AND THE
FORECAST THAT WE HAVE.
WE WILL TALK ABOUT THESE
PICTURES.
WE HAVE TWO GRAPHICS.
ONE IS ABOUT GDP AND THE OTHER
IS ABOUT EMPLOYMENT.
AGAIN, THEY SHOW THE HISTORY
THROUGH LATE LAST YEAR AND THE
BEGINNING OF THIS.
THE LIGHTER ORANGE LINE, OR
WHATEVER COLOR THAT IS, IS THE
PREVIOUS BASELINE FORECAST.
THERE IS REFERENCE.
THE OTHER THREE LINES IN THE
FORECAST, IN PARTICULAR THE
INCLINE.
EACH IS THE BASELINE FORECAST.
THE YELLOW LINE IS THE
OPTIMISTIC AND THE DARKER ONE
IS THE PESSIMISTIC.
AGAIN, WE HAVE A RANGE OF
FORECASTS FROM THE NATIONAL
FORECASTERS AND THEY FEED A
RANGE OF FORECASTS THAT WE
DEVELOP.
THE BASIC MESSAGE HERE IS
TWOFOLD.
ONE IS THE BASELINE REMAINS
ROUGHLY THE SAME.
THE GENERAL TRAJECTORY OF THE
ECONOMY IS ABOUT THE SAME.
HOWEVER THERE IS INCREASING
CONCERN AND INCREASING WRIST ON
THE PESSIMISTIC SIDE.
THE PESSIMISTIC OUTCOME HAS
INCREASED AND THE SEVERITY IN
TERMS OF DOWNTURN HAS ALSO
INCREASED.
WHAT I DESCRIBED IN THIS
VERNACULAR IS THAT WE ARE DOING
QUITE WELL.
WE IMAGINED US DOING A LOT
BETTER.
IT'S NOT HARD TO THINK ABOUT
THINGS THAT WILL STILL WORK.
-- IT'S NOT HARD TO IMAGINE
THINGS GETTING WORSE.
AS YOU THINK ABOUT BUDGETING
PROCESSES AND ALLOCATION OF
RESOURCES, THAT IS SOMETHING TO
KEEP IN MIND.
OUR RECOMMENDATION IS TO STICK
WITH THE BASELINE SCENARIO.
WE SHOULD DO SO WITH THE
AWARENESS OF OTHER POTENTIAL
OUTCOMES.
TAKE THAT NATIONAL FORECAST AND
TRANSLATED INTO OUR REGIONAL
FORECAST.
THESE ARE GRAPHICS THAT ARE
DEMONSTRATING THAT.
YOU CAN SEE THE SAME PATTERN.
THE UPSIDE IS A WHOLE LOT
BETTER THAN THE BASELINE.
--
>> THANK YOU FOR THAT.
YES.
ON THE RIGHT YOU CAN SEE THE
SAME VARIATION ACROSS THE
SCENARIOS.
ONE POINT I WANT TO MAKE THEIR
JUST TO GIVE YOU A SENSE OF
CHALLENGES IN FORECASTING.
IT MAY SEEM A LITTLE ODD THAT
THERE ARE TWO DIFFERENT LINES
FROM HISTORIC DATA ON PERSONAL
INCOME.
IF YOU LOOK BACK FOR 2022.
WHAT HAPPENED IS THERE WAS A
CORRECTION IN THE DATA THAT
WERE PROVIDED TO US ON THE
STATE LEVEL.
THAT IS ONE OF THE CHALLENGES
WE HAVE.
WE HAD TO RERUN THE MODELS,
GIVEN THIS NEW DATA, AND UPDATE
THEM ACCORDINGLY.
A TECHNICAL POINT.
INFLATION IS AN INCREASING
ISSUE OF CONCERN IN TERMS OF
ECONOMICS AND THE CITY REVENUE
AND BUDGET PROCESS EXPENDITURES
AS WELL.
INFLATION HAS STARTED TO PICK UP
LAST FALL.
WE ARE DEVELOPING THE FORECAST
FOR NOVEMBER.
THE EXPECTATION HAS SHOWN IN
THIS LOWER PINK LINE IS THAT
INFLATION WOULD PEAK IN EARLY
2022 AND THEN BEGIN TO FADE.
THAT WAS THE CONSENSUS FORECAST
AT THE NATIONAL LEVEL AND WE
HAD INCORPORATED IT INTO OUR
LOCAL MODEL.
WHAT YOU SEE ABOVE IS NOW THE
CURRENT PROJECTION.
HE ONLY RECEIVED INFORMATION
THAT WOULD SUGGEST THAT IT
MIGHT BE A LITTLE BIT HIGHER.
INFLATION IS PEAKING TO A
HIGHER LEVEL THAN HAD BEEN
ORIGINALLY ANTICIPATED AND ITS
DURATION IS LONGER.
IT DOESN'T LOOK AS TRANSITORY
AS WAS EXPECTED.
THE WAR IN UKRAINE IS EXTENDING
THAT EFFECT.
--
>> THE EXPECTATION IS THAT THE
FORCES THAT ARE DRIVING
INFLATION WILL NOT PERSIST IN
THE LONG RUN.
A COUPLE OF ISSUES THERE.
ONE IS SPECULATION ABOUT THE
WAR IN UKRAINE.
OBVIOUSLY THAT IS A POLITICAL
SPECULATION.
THAT'S ONE OF THE CHALLENGES
HERE.
IT'S NOT EXACTLY THE ECONOMIC
FORCES THAT ARE DRIVING THIS.
THE OTHER IS THE RESPONSE FROM
THE FEDERAL BANK.
THEY ARE INCREASING INTEREST
RATES, SPECIFICALLY IN RESPONSE
TO INFLATION.
IF THAT THEN BECOMES A RISK FOR
THE OVERALL NATIONAL ECONOMY,
JUST INCREASING INTEREST RATES
TIGHTENS ACCESS TO CAPITAL
WHICH CAN SLOW DOWN PERSONAL
AND COMMERCIAL INVESTMENT.
THE BIGGER PICTURE HERE ONE
MIGHT CONSIDER IS THROUGH THE
PANDEMIC THE GOVERNMENT WAS
INVOLVED IN A GREAT DEAL OF
STIMULUS.
THE DOLLARS THAT WE HAD
AVAILABLE TO HELP MITIGATE THE
IMPACT.
THAT WILL BE SUSTAINED. THE
FEDERAL RESERVE IS TRYING TO
MANAGE THE REMOVAL OF THAT
STIMULUS AND LOOKING AT HOW TO
LAND THE ECONOMY INTO A PERIOD
OF STEADY, SELF SUSTAINED
GROWTH.
INFLATION IS IMPACTING THAT FOR
SURE.
A COUPLE OF THINGS ABOUT THAT
IN TERMS OF THE REVENUE
FORECAST.
INFLATION WILL HAVE THE EFFECT
OF INCREASING THE NOMINAL VALUE
OF OUR FORECAST.
A LOT OF OUR REVENUES ARE
PERCENTAGE TAXED.
AS THE PRICE OF CLOTHING GOES UP
THE VALUE OF THE SALES TAX
INCREASES.
IT WAS ANTICIPATED PREVIOUSLY
IN THE FORECAST GROWTH.
THE FLIPSIDE OF THAT IS THE
CITY'S COST AND THE DIRECTOR
MIGHT HAVE MORE TO SAY ABOUT
THIS.
THE CITY'S COST IS DRIVEN BY
THOSE SAME INFLATIONARY
FACTORS.
THE COST OF LABOR FOR CITY
WORKERS AS AN EXAMPLE.
IT IS GOOD NEWS IN TERMS OF
NOMINAL VALUE BUT YOU HAVE TO
CONSIDER THE OVERALL PICTURE TO
GET TO THE BOTTOM OF THINGS IF
YOU WILL.
SPENT ABOUT TIME, MOVING
FORWARD, AS CHAIR MOSQUEDA
MENTIONED WE RECOMMENDED THE
BASELINE OF THE FORECAST.
IN PARTICULAR I HIGHLIGHTED THE
DOWNSIDE RISK.
HE SAW THE PESSIMISTIC SCENARIO.
THERE WAS A TIME, EARLY IN
COVID, THAT WE RECOMMENDED THE
BUDGET OFFICE AND FOLLOWED THE
PESSIMISTIC SCENARIO.
THAT WAS IN PRINCIPLE BECAUSE
WE THOUGHT OUR LOCAL REGION WAS
AT A DIFFERENT LEVEL OF RISK
THAN THE REST OF THE ECONOMY.
IF YOU RECALL WE WERE ON THE
CUTTING EDGE OF THE IMPACTS OF
COVID WITH AN INITIAL WAVE HERE
IN THE U.S. WE ALSO ANTICIPATED
A MORE CONSERVATIVE PUBLIC
HEALTH APPROACH.
AT THAT TIME THE PESSIMISTIC
SCENARIO MADE SENSE.
CURRENTLY THE ECONOMY IS NOT
SPECIALIZED IN SEATTLE IN
PARTICULAR.
WE HAD THE SAME RISK AS AT THE
NATIONAL LEVEL.
THE CONSENSUS IS FOR THE
BASELINE FORECAST, THAT IS WHAT
WE RECOMMENDED.
WHEN I GET TO THE FINAL NUMBERS
HERE THEY WILL BE BASED ON THAT
SCENARIO.
IT WILL TAKE A MINUTE TO SHOW
YOU SOME OF THE SENSITIVITY TO
THE DIFFERENT SCENARIOS.
MOVING FORWARD, NOT TO TALK
SPECIFICALLY ABOUT REVENUE, AS
CHAIR MOSQUEDA MENTIONED THE
FORECAST OFFICE IS A SHARE BUT
NOT THE WHOLE REVENUE.
WE ARE FORECASTING WHAT IS MOST
ECONOMICALLY DEPENDENT.
WE OWN THE REGIONAL ECONOMIC
MODEL AND WE ARE FORECASTING
THE VARIABLES THAT ARE MOST
DEPENDENT ON THE REGIONAL
ECONOMIC VARIABLES.
OTHER THINGS LIKE THE INDIVIDUAL
DEPARTMENT CHART WHERE THE
RATES THEY CHARGE MAY MAKE
SENSE FOR THE BUDGET OFFICE
BECAUSE IT IS MORE POLICY
DRIVEN REVENUES.
WE ARE RESPONSIBLE FOR SALES,
BUSINESS LICENSE FEES COME A
PRIVATE UTILITY TAXES, AND THE
PAYROLL TAX, AND THE REAL
ESTATE EXCISE TAX.
THOSE SUPPORT GENERAL
GOVERNMENT ACTIVITIES.
LASTLY, WE PROVIDE INPUTS TO
THE FORECAST TASK.
THE REVENUES REPRESENT MORE
THAN $1 BILLION.
IT'S A SIGNIFICANT SHARE OF THE
CITY'S REVENUE.
YOU CAN SEE THOSE NUMBERS
SHORTLY.
ONE THING I WANT TO TALK ABOUT
WAS THE PAYROLL EXPENSE TAX AND
OUR APPROACH HERE.
JUST A LITTLE BIT OF BACKGROUND
WE RECALL THAT LAST YEAR, 2021,
WAS THE FIRST YEAR THAT THE TAX
WAS IN EFFECT.
PAYMENTS WERE ALL MADE AT THE
END OF THE YEAR.
THEY WERE NOT DUE UNTIL THE END
OF JANUARY.
THOSE PAYMENTS ARE PROCESSED.
THE ACTUAL REVENUE
SIGNIFICANTLY EXCEEDED OUR
FORECAST.
APPROXIMATELY 25%.
WE HAVE BEEN FORECASTING ABOUT
200 MILLION.
THE FINAL TOTAL WAS 248
MILLION.
AGAIN, NOT IDEAL TO HAVE BEEN
THAT FAR OFF.
IN OUR DEFENSE IF YOU WILL,
THIS IS SOMETHING THAT WE HAD
VERY LITTLE INFORMATION GOING
IN.
WE KNOW SOMETHING ABOUT THE
OVERALL INCOME BEING PAID TO
WORKERS IN SEATTLE.
THE TAX IS VERY SPECIFIC AND IT
ONLY APPLIES TO SALARIES PAID.
>> CAN I ADD TO THAT VERY
BRIEFLY, THE DIRECTOR NOBLE TO
-- AN IMPORTANT ELEMENT TO THAT
EXPLANATION IS THE INFORMATION
IS KNOWN.
IT IS KNOWN BY THE STATE
DEPARTMENT OF REVENUE.
FOR PROPRIETARY REASONS THEY
COULD NOT SHARE THE FULL
DETAILS.
IT'S NOT AS IF THE DATA DIDN'T
EXIST.
IT EXISTED BUT WE CAN ONLY MAKE
ASSUMPTIONS BASED ON THE AMOUNT
OF INFORMATION THAT THE
DEPARTMENT OF REVENUE COULD
SHARE WITH US.
BACK TO THE WORK WE DID IN
2020, WHEN YOU WERE WEARING A
DIFFERENT HAT.
I JUST WANTED TO ASK IF THAT IS
AN ACCURATE ADDITION TO WHAT
YOU SAW AS WELL.
>> THEY DO HAVE ADDITIONAL
INFORMATION BUT THEY ARE
CONSTRAINED WITH WHAT THEY CAN
SHARE BECAUSE OF PROPRIETAY
INFORMATION.
WE HAVE THE OFFICE ENGAGED WITH
THE SECURITY DEPARTMENT ON A
SHARING AGREEMENT FOR THESE
ESTIMATES GOING FORWARD.
ANOTHER THING THAT WOULD HELP
US A LITTLE BIT IS IN 2022
PAYMENTS WOULD BE MADE
QUARTERLY.
AT THE END OF THIS MONTH
PAYMENTS ARE DUE.
WE WILL GET SOME INFORMATION
FROM THAT AS WELL.
ONE OF THE CHALLENGES THAT I
DESCRIBED ON THIS SLIDE IS
REMOTE WORK HAS AN IMPACT ON
THE WAY IT APPLIES.
WE HAD EVERY EXPECTATION THAT
2021 WON'T ACTUALLY BE
REPRESENTATIVE OF WHAT WE HAVE
GOING FORWARD
WE WILL BE ABLE TO GLEAN SOME
INFORMATION FROM IT.
WE GENERALLY EXPECT THIS YEAR
TO BE ONE OF TRANSITION.
AGAIN, TRANSITION TO WHAT NEW
WORLD IS STILL A QUESTION WE'LL
HAVE AT SOME LEVEL.
IT WILL CERTAINLY BE AFFECTING
THIS REVENUE STREAM
SIGNIFICANTLY.
THAT GIVES YOU A SENSE.
I WANT TO EMPHASIZE THAT THERE
HAS BEEN UNCERTAINTY GOING
FORWARD ON THIS AS WELL.
THE LANDSCAPE IS CHANGING. I
WON'T SPEND A WHOLE LOT OF TIME
HERE.
THIS WILL GIVE YOU, IN SOME
SENSE, HOW THINGS VARY.
THE LARGEST REVENUE STREAMS,
RETAIL SALES, PAYROLL. FOR 2023
, IT'S JUST A SINGLE FORECASTER
OF WHAT THE DIFFERENCE WOULD
BE.
IF YOU ADD THAT ALL UP FOR 2022
AND 2023 TOGETHER THE
PESSIMISTIC SCENARIO FOR 2022
WOULD BE $30 MILLION LOWER.
AND FOR 2023 IT WOULD BE $54
MILLION LOWER.
IT IS, IN TOTAL, A SIGNIFICANT
VARIATION.
AGAIN, JUST TO HIGHLIGHT THE
POTENTIAL RISK THERE.
BEFORE I GET TO A SUMMARY OF
REVENUES I JUST WANT TO SAY A
FEW THINGS ABOUT THE OTHER
SOURCES THAT WE ARE
FORECASTING.
NATURAL GAS AND STEAM.
THESE FIRST COUPLE ARE WITHIN
THE GENERAL FUND REVENUES.
THESE ARE PRIVATE UTILITY TAXES.
FOR BOTH NATURAL GAS AND STEAM.
ESCALATING ENERGY PRICES FOR
INFLATIONARY EFFECTS COULD HELP
INCREASE OUR REVENUES AND WE
ARE EXPECTING THAT GOING
FORWARD.
THEY ARE NOT HUGE DRIVERS OF
THE OVERALL REVENUE PICTURE BUT
NONETHELESS THEY GIVE YOU THAT
BACKGROUND.
CABLE AND TELEPHONE
INTERESTINGLY HAS BEEN IN
DECLINE.
THIS HAS TO DO WITH CONSUMER
BEHAVIOR FROM COVID.
PEOPLE ARE CUTTING THE CORD AND
MOVING TO ONLINE VERSUS CABLE
SERVICES FOR ENTERTAINMENT.
ON THE TELEPHONE SIDE WHEELIE
TAX AND USE THE VOICE OVER THE
TELEPHONE.
TEXTING AND DOING OTHER THINGS
RATHER THAN COMMUNICATING BY
VOICE.
IN TOTAL THERE ARE ABOUT 15
MILLION EACH.
IT'S NOT THE END OF THE WORLD
BUT IT IS A LONG-STANDING AND
STEADY PATTERN AT THIS POINT.
SOME OTHER TAXES WE ARE
RESPONSIBLE FOR.
THE ADMISSIONS TAX.
OUR FORECAST IS ESSENTIALLY
UNCHANGED.
THAT'S BECAUSE WE ANTICIPATED
SOME OF WHAT WE ARE SEEING.
COVID HAS WANED.
THERE IS MORE ACTIVITY IN
PLACES WHERE THE ADMISSIONS
TAXES WERE COLLECTED FROM.
WE HAD ANTICIPATED THE OPENING.
AGAIN, THERE ARE OTHER SOURCES
LISTED THERE.
THE REAL ESTATE EXCISE TAX,
THAT IS A TAX ON REAL ESTATE
TRANSACTIONS.
ALTHOUGH THERE WAS A SLIGHT
INTERRUPTION AT THE BEGINNING
OF COVID, SINCE THEN THE REAL
ESTATE MARKET FOR BOTH
COMMERCIAL AND RESIDENTIAL,
HAVE BEEN STRONG IN TERMS OF
TRANSACTION.
WE HAVE SEEN GOOD REVENUES FOR
2021, FORECASTING STRONG
REVENUES FOR 2022.
IN THE LONGER RUN, AND THIS
GETS BACK TO A POINT THAT WAS
MADE ABOUT THE FEDERAL RESERVE
POLICY BEHAVIOR.
AS INTEREST RATES INCREASE
THERE IS EXPECTATION THAT THE
LEVEL OF TRANSACTIONS MAY
DECLINE AND ACCESS TO CAPITAL
BECOMES MORE COSTLY AS INTEREST
RATES GO UP.
WE WANT TO SPEND MORE TIME TO
BETTER UNDERSTAND WHAT'S GOING
ON HERE.
I'M DIVING IN NOW TO SHOW YOU
THE REVENUE FORECAST HERE.
LET ME WALK THROUGH YOU A TABLE
WITH LOTS OF NUMBERS HERE.
THESE ARE REVENUES THAT WE
FORECASTED.
THE GENERAL FUND REVENUES, THE
LOWER PART OF THE TABLE IS
OTHERS.
WHICH ARE CONSTRAINED. WE WILL
TOUCH ON THEM BRIEFLY.
THIS FIRST COLUMN IS THE 2021
ACTUAL PERIOD OF SHOWING IT FOR
REFERENCE MORE THAN ANYTHING
ELSE.
FOR 2022 WE ARE SHOWING YOU THE
NOVEMBER FORECAST.
THAT IS THE ONE TO WHICH THIS
YEAR'S BUDGET IS BALANCED.
SOMETIMES PEOPLE FORGET THIS.
WHEN YOU APPROVE THE BUDGET IN
THE FALL YOU ARE BALANCING A
FORECAST.
THOSE FORECAST REVENUES FOR
2022 DON'T EMERGE AT THE LEVEL
WE ANTICIPATED.
THEY HAVE THE POTENTIAL TO
REDUCE SPENDING.
YOU CAN SEE THIS IN THE REVENUE
FORECAST AS A POTENTIALLY
INCREASED RESOURCES IN 2020
TWO.
NOW WE HAVE THE FORECAST.
THE FIRST COLUMN OVER IS THE
DIFFERENCE.
THAT SHOWS HOW MUCH THINGS HAVE
CHANGED AND TO IMPROVE THE
BUDGET FOR THIS 2022 YEAR
PERIOD THAT WE HAVE 2023 AND
2024.
AS THE FALL COMES THE MAYOR WILL
PROPOSE A BIANNUAL BUDGET.
2023 AND 2024.
THESE ARE THE KEY NUMBERS IN
TERMS OF THE REVENUE SIDE THAT
WE ARE PRODUCING FOR YOUR
BUDGET PROCESS.
UPDATED FOR 2022 AND LOOKING
AHEAD.
JUST MOVING DOWN HERE, TOP TO
BOTTOM, THE OVERALL SENTIMENT
IS THE ECONOMY HAS IMPROVED
RELATIVE TO THE EXPECTATIONS IN
THE FALL AND WE ARE SHOWING A
SLIGHT INCREASE IN THE FORECAST
REVENUE. A SLIGHT DECREASE FOR
THE BUSINESS LICENSE FEE.
IT IS THE BEGINNING OF THE YEAR
TO OPERATE A BUSINESS IN
SEATTLE.
IN SKILL TO HOW MUCH REVENUE
FIRMS MAKE.
WE LOST A FEW FIRMS AND THEY
ARE MAKING A LITTLE BIT LESS
MONEY.
IT'S NOT A SURPRISE THAT IS
DOWN SLIGHTLY.
THE RETAIL SALES TAXES DOWN
SLIGHTLY.
THOSE ARE TAXES COLLECTED
ACROSS THE CITY.
THE RETAIL SALES CRIMINAL
JUSTICE IS A SHARE OF A
COUNTYWIDE TAX THAT IS AWARDED
TO US.
IT IS UP AS WELL, SLIGHTLY.
ON THE UTILITY TAXES SIDE I
MENTIONED THAT THERE IS AN
OVERALL DECLINE IN CABLE
REVENUE.
SHOWING AN INCREASE IN APRIL
BECAUSE PAYMENTS THAT SHOULD
HAVE BEEN MADE IN 2021 HAVE
ARRIVED LATE.
AGAIN, MINOR DIFFERENCES ON THE
VARIOUS UTILITIES.
THE DIFFERENCE OVERALL FOR THE
GENERAL FUNDS ARE RELATIVE TO
THE NOVEMBER FORECAST.
JUST OVER $30 MILLION.
$30.25 MILLION.
THAT IS AN INCREASE FOR THIS
SET OF REVENUE.
DIRECTOR DINGLEY WILL REVIEW
ON THE OTHER REVENUES AND THE
EXPENDITURE SIDE.
>> JUST TO CORRECT THAT.
DIRTY $2.5 MILLION.
THAT'S THE CASE.
GO AHEAD AND FINISH HER
SENTENCE AND I WILL GO TO
COUNCILMEMBER HERBOLD.
>> FOR 2023 AND 2024, I WILL
NOT GO LINE BY LINE.
WE SEE CONTINUED GROWTH.
THERE REMAINS A GOOD DEAL OF
ECONOMIC UNCERTAINTY FOR COMING
OUT OF THE PERIOD OF COVID.
EMPLOYMENT IS PICKING UP.
THERE'S A VARIETY OF FACTORS
THAT CONSTRAIN OVERALL GROWTH.
>> COUNCILMEMBER HERBOLD,
PLEASE GO AHEAD.
>> FOR THIS EXERCISE, WHICH I
UNDERSTAND IS AN EXERCISE OF
PREPARING US FOR SOME DECISIONS
RELATED TO THE 2022 BUDGET, IN
PREPARATION FOR THE 2023 AND
2024 BUDGET.
WOULD IT BE USEFUL TO KNOW THE
2021 ACTUALS AGAINST THE
COUNCIL ENDORSED BUDGET?
IT WOULD SUGGEST, I THINK, THAT
THERE WOULD BE SOME CARRYOVER
FUNDS FROM 2021 THAT WE SHOULD
BE CONSIDERING.
>> THE VERY FIRST MEETING OF
THE FORECAST COUNCIL WAS IN
MARCH.
WE DID PROVIDE EXACTLY THAT
COMPARISON OF THE 2021 ACTUALS
TO THE FORECAST.
AND WE DID SHOW THAT THE 2021
ACTUALS WERE SLIGHTLY AHEAD OF
THE FORECAST.
AS DIRECTOR DINGLEY MOVES ON I
AM CERTAIN YOU WILL SEE THAT
ACCOUNTED FOR AS WELL.
THE FORECAST COUNCIL HAD SEEN
THAT IN A SEPARATE
PRESENTATION.
I THINK YOU WILL GET THAT AGAIN
IS THE OVERALL PICTURE.
IT'S ABSOLUTELY RELEVANT.
>> THE STREAM REPORT OUTS AND
THE OVERALL PICTURE YOU ARE
HOLDING, I THINK THAT CATCHES
COUNCILMEMBER HERBOLD'S
INTEREST AS WELL.
>> THANK YOU.
THAT'S WHAT I WANTED TO JUMP IN
ON.
TODAY WE WILL GET AN UPDATE OF
THE OVERALL REVENUES FORECAST
UPDATE FOR APRIL. WE WILL BE
USING THAT TO UPDATE THE CITY'S
FINANCIAL PLAN AND TO INFORM
THE COUNCIL'S DISCUSSION ON
APPROVAL OF THE PROPOSED
CARRYFORWARD LEGISLATION FOR
2021.
SORRY, THAT WASN'T A CLEAR
ANSELL. THE 2021 ACTUALS, THE
AMOUNT OF REVENUE THAT CAME IN
OVER FORECAST WILL BE PART OF
THE INPUT INTO THE UPDATED
FINANCIAL PLAN AND WILL ALSO
INFORM YOUR DECISIONS ABOUT THE
CARRYFORWARD ORDINANCE THAT THE
COMMITTEE WILL BE DISCUSSING
LATER IN MAY.
FIRST WE WILL DO AN UPDATED
FINANCIAL PLAN THAT WILL GIVE
YOU AN UNDERSTANDING OF HOW
THIS DECISIONS AND ACT 2023 AND
2024 AND YOU WILL BE ASKED TO
CONSIDER THAT LEGISLATION LATER.
>> COUNCILMEMBER NELSON, DID
YOU HAVE A QUESTION?
>> YES.
THANK YOU VERY MUCH.
I THINK THIS IS BACK TO
DIRECTOR NOBLE.
BEFORE COVID, WHICH THE GRAPHS
DON'T SHOW, WHAT IS AN AVERAGE
OVER FIVE YEARS?
WHAT IS A NORMAL GENERAL FUND
INCREASE?
IS THAT AROUND FIVE? DO THESE
NUMBERS HERE, 5.6% INCREASE
FROM NOVEMBER.
>> IT'S IMPORTANT TO RECOGNIZE
WE HAVE BEEN IN A PERIOD OF 10
YEARS OF EXPANSION.
I WOULD HAVE TO GO BACK AND
LOOK AT THE ACTUAL NUMBERS.
THESE ARE A SUBSET OF THE
OVERALL GENERAL FUNDS.
THERE WERE POLICY CHOICES ALONG
THE WAY.
GROWTH IS IN THE 5 TO 6% RANGE.
WE ARE RELATIVELY CONSISTENT TO
WHAT WE HAVE BEEN SEEING.
MAYBE A LITTLE BIT LOWER.
WE RECALLED THAT WE WERE IN A
PERIOD OF INFLATION OF BARELY
2%.
THE REAL GROWTH OF 2% ON TOP OF
INFLATION.
4 TO 5 IS RELATIVELY
CONSISTENT.
INFLATION IS DRIVING THE
NOMINAL VALUE.
PART OF THE REASON THE REVENUE
FORECAST IS UP FOR 2022 IS THE
INFLATION FORECAST IS UP.
THAT WILL BRING IN MORE NOMINAL
DOLLARS.
DEPENDING ON WHAT HAPPENS
WITHIN THE CITY'S COST IT MAY
NOT BUY YOU MORE SERVICES.
WHATEVER THOSE SERVICES MIGHT
BE.
FOR 2023 AND 2024, THOSE GROWTH
RATES, GIVEN WHAT WERE
REFLECTED FOR INFLATION, HAVE --
RATHER THAN NET INCREASE.
TO GIVE YOU A BETTER SENSE OF
WHERE THINGS ARE OVERALL AND
WHERE THE PROJECTED SHORTFALL IS
, AS YOU COMPARE EXPENDITURES
TO THESE REVENUES.
>> WHAT IS THE OVERALL REVENUE
GAP?
>> THAT IS EXACTLY THE PERFECT
TO LEAD INTO THE NEXT
PRESENTATION ACTUALLY.
THAT'S WHAT I WAS GOING TO
SUGGEST.
BOTH YOUR QUESTION AND DIRECTOR
NOBLE'S COMMENT ABOUT DIRECTOR
DINGLEY'S PRESENTATION IS THE
FULLER PICTURE.
WE WILL GET TO THAT ENTIRE LINE
OF QUESTIONING. IT IS
IMPORTANT, COLLEAGUES, THAT WE
HAVE SEPARATE PRESENTATIONS
BECAUSE THE OFFICE OF ECONOMIC
REVENUE FORECAST IS AN
INDEPENDENT OFFICE.
WE WANTED TO MAKE SURE TO
SPECIFICALLY HAVE TIME CARVED
OUT FOR THIS PRESENTATION.
NOW WE ARE GOING TO SEE THE
CITY BUDGETS OFFICE
PRESENTATION, WHICH I WILL ALSO
BE WALKING THROUGH FOR THE
FIRST TIME.
THIS IS NOT PART OF THE REVENUE
FORECAST COUNCIL PRESENTATION.
THIS WILL BE THE OPPORTUNITY
FOR US TO ASK QUESTIONS OF BOTH
BODIES.
JUST AS A REMINDER, AS INTERIM
DIRECTOR ALY PENNUCCI JUST
NOTED, THIS WILL LEAD TO A
FULLER CONVERSATION ON MAY 4th.
THAT WILL REALLY GET SOME
QUESTIONS ABOUT THE REMAINDER
OF 2022 AND HOW WE PLAN FOR
2023, 2024, AND BEYOND.
I JUST WANTED TO MAKE SURE
FOLKS UNDERSTOOD THE SEQUENCING
OF IT.
THERE ARE TWO PRESENTATIONS
TODAY AND THEN A FINAL OVERALL
PICTURE AT THE NEXT COMMITTEE
MEETING.
WITH THAT, COUNCILMEMBER
HERBOLD , ANYTHING ELSE?
>> PLEASE, THANK YOU.
I DO HAVE A COUPLE OF QUESTIONS
ABOUT THE PREVIOUS SLIDES.
I HAVE ASKED THIS QUESTION
BEFORE AND I FORGET WHAT THE
ANSWER IS.
AS A RELATES TO THE LEISURE AND
HOSPITALITY CATEGORY.
DO WE KNOW IF ARTS AND CULTURAL
WORKERS ARE INCLUDED IN THAT
CATEGORY?
I ASK BECAUSE WE ARE CONSTANTLY
AND CONSISTENTLY SEEING DATA
THAT THE HARDEST HIT SECTORS
ARE THOSE THAT ARE EXPECTED TO
TAKE THE LONGEST TO RECOVER.
ARTS AND CULTURE IS OFTEN
LUMPED IN WITH HOSPITALITY WHEN
YOU HEAR THAT TALKING POINT.
I JUST WANT TO UNDERSTAND
WHETHER OR NOT OUR CULTURAL
WORKERS ARE INCLUDED IN THAT
PARTICULAR CATEGORY.
RELATED TO THAT, THE AREAS
PICKING UP THE MOST JOBS APPEAR
TO BE THE HIGHEST PAID.
DO WE HAVE AN ANALYSIS THAT
SPECIFICALLY LOOKS AT RECOVERY
IN JOBS FOR PEOPLE WHO ARE PAID
THE LOWEST WAGES?
I THINK THAT INFORMATION, AS IT
RELATES TO WHAT OUR PROJECTIONS
ARE ABOUT THE LIKELY RECOVERY
OF EMPLOYMENT IN THOSE JOBS
WILL HELP US IN SOME OF OUR
BUDGETING DECISIONS FOCUSED ON
TRYING TO HELP PEOPLE WHO
CONTINUE TO STRUGGLE IN CERTAIN
SECTORS.
THAT IS ONE SET OF QUESTIONS.
THE OTHER SET OF QUESTIONS, THE
OTHER ONE QUESTION IS RELATED
TO SLIDE EIGHT.
I CAN WAIT ON THAT.
>> LET'S GET IT OUT THERE
COUNCILMEMBER HERBOLD.
>> ON SLIDE EIGHT, YOU MAY HAVE
ADDRESSED THIS.
I'M SORRY.
THE BROWN LINE. THE MARCH
PESSIMISTIC LINE ON THE LEFT
SIDE.
>> YES.
>> IT'S SIGNIFICANTLY DIFFERENT
FROM THE OCTOBER AND MARCH
BASELINES AND THE OPTIMISTIC
SCENARIO.
THE THREE OF THEM SEEM TO BE
VERY CLOSE.
THE PESSIMISTIC SCENARIO IS
DIFFERENT.
>> IF I HAD TO PUT A FINGER ON
IT THAT IS MOST RELATED TO THE
UNCERTAINTIES AROUND UKRAINE.
AND THE POTENTIAL FOR THAT TO
RIPPLE ACROSS THE GLOBAL
ECONOMY AND THE NATIONAL
ECONOMY.
WE OBVIOUSLY DON'T KNOW HOW
THAT WILL PLAY OUT.
THE IMPACTS HAVE BEEN
SIGNIFICANT AND COULD GROW
QUICKLY.
ALSO RELATED TO HOW THE FEDERAL
RESERVE RESPONDS TO INCREASING
INFLATION. AGAIN, THERE'S A LOT
OF HISTORY.
BACK TO THE EARLY 80s THERE WAS
A RECESSION WHERE IN ORDER TO
CONTROL INFLATION THE FED
INCREASED INTEREST RATES TO
VERY HIGH LEVELS AND FORCED THE
ECONOMY INTO A PERIOD OF
CONTRACTION.
THOSE ARE LAYERED INTO THE
POSSIBLE ALTERNATIVES.
AGAIN, JUST HIGHLIGHT. IF
THINGS TURN BAD THEY COULD GO
VERY BAD.
IN TERMS OF THE EMPLOYMENT
BUDGET I'M GOING TO PUT MY
COLLEAGUE ON THE SPOT A LITTLE
BIT IN TERMS OF THE DATA.
A QUESTION ABOUT WHETHER THE
ENTERTAINMENT AND CULTURAL
SECTORS ARE PART OF THE LEISURE
AND HOSPITALITY EMPLOYMENT
FIGURES.
AND ALSO WHAT INFORMATION WE
HAVE ABOUT JOB LOSSES BY INCOME
OR WAGE LEVELS.
>> IN TERMS OF LEISURE AND
HOSPITALITY, YES.
THE EMPLOYMENT RECOMMENDATION
FOR SERVICES IS ABOUT 80%. THE
ARTS AND RECREATION IS ABOUT
20% OF LEISURE AND HOSPITALITY.
IN TERMS OF INFORMATION
REGARDING THE RECOVERY OF A LOW
VERSUS HIGH-PAYING JOB THERE,
IT'S PARTICULARLY USEFUL THAT
WE COULD USE FOR THE CITY OF
SEATTLE AREA.
THE OVERALL EMPLOYMENT FOR CITY
OF SEATTLE COMES WITH -- THOSE
ARE STILL JUST -- BY INDUSTRY.
VERY LITTLE INFORMATION.
>> THANK YOU.
>> OKAY, COLLEAGUES.
HOLD ANY OTHER QUESTIONS YOU
HAVE.
I'M HOPING THAT DIRECTOR NOBLE
CAN BE WITH US AT THE END OF
THE PRESENTATION.
THANK YOU.
WE WILL COME BACK IF THERE ARE
ANY ADDITIONAL QUESTIONS THAT
TIE INTO THE FIRST
PRESENTATION.
WITH THAT LET'S DO PART TWO AND
SHIFT BACK INTO THE EXECUTIVE
DEPARTMENTS.
WE ARE GOING TO ASK THE CLERK
TO READ ITEM NUMBER THREE INTO
THE RECORD AND HAVE THIS
SEGMENT PRESENTED SO WE CAN SEE
A FULLER PICTURE.
>> CITY BUDGET OFFICE REVENUE
UP DATE FOR APRIL, 2022.
BRIEFING AND DISCUSSION.
>> THANK YOU FOR BEING WITH US,
DIRECTOR DINGLEY.
ALSO DAVE HENNES . WE WILL
ALSO HAVE ALY PENNUCCI AND TOM
MIKESELL WITH US HERE FROM
CENTRAL STAFF.
THANK YOU ALL FOR THE WORK YOU
HAVE DONE.
WE DID NOT HAVE A CHANCE TO SEE
THIS PORTION OF THE
PRESENTATION.
PER OUR COMMITMENT TO THE
COUNCIL AND THE COMMUNITY AT
LARGE WE ARE ALL RECEIVING THE
INFORMATION IN REAL TIME IN
TERMS OF THE COUNCILMEMBERS,
MYSELF INCLUDED, ARE RECEIVING
THOSE AT THE SAME TIME AS THE
OTHER COUNSEL.
WE WANT TO MAKE SURE THIS IS
PRESENTED IN A TIMELY MANNER
THAT TIMES AND WITH THE
QUARTERLY UPDATES WE WILL BE
GETTING FROM THE REVENUE
FORECAST COUNCIL.
I UNDERSTAND TODAY THAT
DIRECTOR DINGLEY WILL BE
PRESENTING -- WE REALLY
APPRECIATE YOUR COMMITMENT TO
COLLABORATION AND TRANSPARENCY,
ESPECIALLY AS WE LOOK AT THE
DEEP NEED IN COMMUNITY RIGHT
NOW AND THE INITIAL WORRY THAT
WE HAD ABOUT REVENUE PROJECTIONS
FOR THE REMAINDER OF THIS YEAR.
I KNOW THIS IS SOMETHING ALL OF
US ARE COMMITTED TO HANG ON TO
SO WE CAN ADDRESS THE GAP WE
DISCUSSED AND THERE WILL ALSO
BE AN OPPORTUNITY FOR US TO ASK
QUESTIONS AT THE END OF YOUR
PRESENTATION.
WITH THAT I WILL GO AHEAD AND
TURN IT OVER TO DIRECTOR
DINGLEY TO WALK US THROUGH THE
PRESENTATION.
AT THE END OF THE PRESENTATION
THERE IS A SPREADSHEET TO SHOW
THE REVENUE PICTURE, WHICH OF
COURSE IS ONLY PART OF THE
CONVERSATION AS WE CONTINUE
COLLABORATING WITH CENTRAL STAFF
AT THE MAY 4th MEETING TO DO A
FINAL ANALYSIS OF THESE TWO
PRESENTATIONS. AND A SIX YEAR
OUTLOOK FOR HOW THE CITY IS
PROJECTED TO RECOVER FROM THIS
PANDEMIC.
THANK YOU DIRECTOR DINGLEY.
I WILL TURN IT OVER TO YOU.
PLEASE WALK US THROUGH ANY
MATERIALS YOU HAVE.
>> THANK YOU, CHAIR MOSQUEDA.
>> I WANT TO TEE UP ALSO, IF WE
COULD HAVE THE CLERK PUT UP THE
PRESENTATION THAT WOULD BE
AWESOME AS WELL.
>> AS THEY ARE PULLING THAT UP
I WILL GIVE A LITTLE BIT OF
CONTEXT TO SET THE TABLE HERE.
THANK YOU FOR HAVING US.
AS THE CHAIR MENTIONED WE ARE
PRESENTING THE UPDATED APRIL
FORECAST FOR THOSE GENERAL FUND
AND NON-GENERAL FUND REVENUES
FOR WHICH CBO PRESENTS THE
FORECAST PERIOD AND A FULL
PICTURE OF REVENUE INCLUDING
THE ONES YOU JUST SAW FROM
DIRECTOR NOBLE.
I'M JOINT TODAY BY DAVE HENNES.
HE WILL BE PRESENTING THE BULK
OF THE UPDATE TO YOU THIS
MORNING.
WE ALSO HAVE CBO ANALYST JOE
RUSSELL TO HELP US ANSWER
QUESTIONS.
I WILL PICK UP TOWARD THE END
FOR THE SUMMARY TABLE FOR ALL
OF THE REVENUES AS WELL AS TALK
TO THE REVENUES IN CONTEXT.
SPEAKING OF THAT CONTEXT, AS
WAS RAISED UNDER DIRECTOR
NOBLE'S PRESENTATION, AND THE
CHAIR JUST NOW, YOU WILL HAVE
THE FULL REVENUE PICTURE.
KEEP IN MIND I'M NOT GOING TO
GIVE YOU UPDATES ABOUT THE
EXPENDITURE SIDE OF THE
EQUATION TODAY.
THAT IS NOT SUBJECT TO THIS
PRESENTATION.
YOU WILL HEAR MUCH MORE ABOUT
THAT OVERALL BALANCING PICTURE
IN TWO WEEKS.
WITH THAT EVERYTHING ELSE I WAS
GOING TO COVER HAS BEEN SET.
I WILL TURN IT OVER.
>> APOLOGIES, THE PRESENTATION
IS NOT ON THE SCREEN.
I JUST WANTED TO DOUBLE CHECK
TO SEE IF WE COULD GET THAT UP,
MADAM CLERK.
OKAY.
I'M NOT HEARING FROM THE CLERK.
OKAY.
THANK YOU FOR SHARING THAT.
PLEASE GO AHEAD, DAVE.
>> THANK YOU. I LOOK FORWARD TO
THIS NEXT 20 MINUTES OR SO TO
PRESENT TO THE GENERAL FUND
REVENUES.
AS FORECASTED BY CBO.
I THOUGHT IT MIGHT BE HELPFUL
TO BEGIN BY TALKING ABOUT WHICH
REVENUES ARE FORECASTED BY CBO
RELATIVE TO THAT REVENUE
FORECAST.
WE HAVE GENERAL FUND REVENUES
AND WE HAVE OTHER FUND REVENUES.
WE ARE FORECASTING AND
PROJECTING.
I THINK IT'S IMPORTANT TO
REITERATE THE NOTION THAT A LOT
OF THESE REVENUES ARE REVENUES
THAT THE DEPARTMENT THEMSELVES
FORECAST. CBO IS ACTUALLY
COMPILING THEM AND AT TIMES
WORKING WITH THE DEPARTMENT TO
PROJECT REVENUES. THAT'S SORT
OF WHY THEY ARE IN CBO, AS
DIRECTOR NOBLE MENTIONED.
WE HAVE PROPERTY TAXES.
YOU CAN SEE THAT WE RELY ON THE
INPUTS FROM THE REVENUE
FORECAST FOR THE NEW
CONSTRUCTION FORECAST AND THE
ASSESSED VALUE FORECAST, WHICH
IS LARGELY THE BASIS OF THE
PROPERTY TAX FORECAST.
AFTER THAT IS THE COMPUTATIONAL
EFFORT OF DETERMINING THE
AMOUNT.
THE PUBLIC UTILITY TAXES THAT
WE HAVE, THOSE ARE FORECASTED
BY THOSE DEPARTMENTS AND WE
COMPILE THEM.
THERE IS A SERIES OF OTHER
MINOR TAXES, LISTED OUT HERE.
TRANSPORTATION, NETWORK COMPANY
TAXES, AS WELL AS A FEW OTHERS.
LICENSES AND PERMITS ARE
LARGELY DEPARTMENTAL.
THEY ARE PROJECTED REVENUE
STREAMS THAT WE COMPILE.
WE DO A FEW OF THEM. ON STREET
PARKING FEES, OTHERWISE KNOWN
AS PARKING METERS.
THERE ARE GRANTS, WHICH COME
FROM FEDERAL, STATE, AND LOCAL
SOURCES.
AND TRANSFERS WHICH HAVE TWO
COMPONENTS. FOR THE PAST COUPLE
OF YEARS WE HAVE HAD FEDERAL
GOVERNMENT TRANSFERS THAT HAVE
BEEN COUNTED IN THAT CATEGORY.
AS WELL AS THE COST ALLOCATIONS
AND OTHER INTERDEPARTMENTAL
FUND TRANSFERS THAT GO ON IN
THE COURSE OF BUSINESS IN THE
CITY.
TRANSFERS TO THE GENERAL FUND
FROM OTHER DEPARTMENTS TO PAY
FOR SERVICES.
THERE IS A BULLET THAT IS NOT
HERE I SUPPOSE.
THE MISCELLANEOUS CATEGORY.
IT COULD INCLUDE THINGS LIKE
INTEREST EARNINGS ON THE CITY'S
CASHABLE. THAT GOES WITH THE
GENERAL FUND. AND STATE SHARED
REVENUES.
THINGS LIKE LIQUOR EXCISE TAXES
OR CRIMINAL JUSTICE TRANSFERS
THAT WE GET FROM THE STATE
GOVERNMENT.
AND THEN THERE IS A SET OF
OTHER FUND REVENUES, AS YOU CAN
SEE HERE.
THE SCHOOL ZONE, THE AUTOMATED
SPEED ENFORCEMENT CAMERA FINDS
ARE IN A SEPARATE FUND.
AND THEN A COMPONENT OF THE
SEATTLE TRANSPORTATION BENEFIT
DISTRICT FUNDS WITH THE LICENSE
FEES.
NEXT SLIDE.
THIS IS A VISUAL REPRESENTATION
OF WHAT WE TALKED ABOUT.
ON THE LEFT-HAND SIDE, IN THE
GRAY PIE SLICES, YOU CAN SEE
THE OFFICE OF ECONOMIC REVENUE
FORECAST. GENERAL FUND
REVENUES.
NOTICE THE PAYROLL EXPENSE TAXES
. UP ABOVE, IN THE UPPER RIGHT,
THE PROPERTY TAX.
WE HAVE SORT OF PULLED THAT OUT
TO SIGNIFY THAT IT IS DRIVEN BY
THE FORECAST OFFICES INPUTS.
IN TERMS OF WHO IS RESPONSIBLE
FOR PRODUCING THE FINAL NUMBER,
THAT IS ON THE CBO SIDE.
THE GRAY SIDE SO TO SPEAK, THE
FORECAST OFFICE SIDE, ABOUT 64%
OF THE 2022 REVISED REVENUES.
AND THEN YOU CAN SEE, IN THE
COLORED SLICES DOWN BELOW,
THOSE ARE THE CITY BUDGET
OFFICE ELEMENTS.
THE GRANTS AND TRANSFERS.
AND REALLY ALL ELSE.
ABOUT 36%.
COVERED BY CBO.
THANK YOU.
A LITTLE BIT OF CONTEXT ABOUT
THE FORECAST WE ARE ABOUT TO
TALK ABOUT.
JUST TRYING TO SET THE TABLE A
LITTLE BIT MORE.
THE MAIN THING THAT HAS
HAPPENED OVER THE PAST COUPLE
OF YEARS, THERE HAS BEEN
EXTREME VOLATILITY.
THAT VOLATILITY IS DUE TO A
VARIETY OF SOURCES.
NOT JUST ECONOMIC FACTORS.
I THINK DIRECTOR NOBLE
REFERENCED THIS AS WELL.
I JUST WANT TO MAKE IT CLEAR TO
EVERYBODY.
OVER THE PAST FEW YEARS, ALSO
GOING FORWARD, THERE IS NO
REASON TO BELIEVE THIS WON'T
CONTINUE.
WE WANT TO FOREWARN EVERYBODY
THAT WE ARE STILL IN A PERIOD
OF PRETTY DRAMATIC CHANGES
GOING ON.
SOME EXAMPLES OF THAT, SOME OF
THESE CHAGES ARE BEHAVIORAL.
SOME OF THE THINGS THAT DRIVE
THE REVENUES ARE BEHAVIORAL.
THEY ARE LARGELY RELATED TO
COVID HEALTH CONCERNS.
THE COMMERCIAL PARKING TAX,
SHORT-TERM RENTAL TAXES, SUITE
AND BEVERAGE TAXES, THEY ARE
HIGHLY DEPENDENT ON PEOPLE'S
BEHAVIOR.
THE RETURN TO OFFICE POLICIES OF
PRIVATE SECTOR EMPLOYEES IN THE
CITY ITSELF, THE RECOVERY OF
HOSPITALITY THAT COUNCILMEMBER
HERBOLD WAS MENTIONING.
THE SHORT-TERM RENTAL.
THOSE WILL COME BACK WHEN THEY
COME BACK.
THEY ARE HARD TO PREDICT WHEN
ALL OF THAT WILL HAPPEN.
AS WE GO FORWARD WE WILL TRY TO
DO OUR BEST.
THESE ARE VOLATILE ISSUES TO
PROJECT.
THERE'S ALSO THE POLICY
DECISIONS. COURT FINES ARE
SIGNIFICANTLY DOWN.
WE SUSPENDED COLLECTIONS
ACTIVITY.
WE ARE NO LONGER CHARGING
CREDIT CARD FEES.
REGARDLESS OF WHERE YOU STAND
ON THE POLICY CHOICES BEING
MADE THEY AFFECT THE REVENUE
STREAM.
JUST TRYING TO CAPTURE AND
PREDICT ALL OF THESE EFFECTS
ARE DIFFICULT.
WE HAVE SOME OF THE CITATIONS
DOWN.
THAT IS DUE TO TRAFFIC
ENFORCEMENT.
THERE ARE PATROL HOURS DEVOTED
TO THAT BODY OF WORK AND THOSE
DECISIONS MADE ABOUT WHAT IS A
PRIORITY AT THIS TIME, GIVEN
ALL OF THE OTHER DEMANDS ON
THEIR TIME.
ON STREET PARKING REVENUES, OUR
RATES ARE STILL LOWER THAN THEY
WERE PRE-PANDEMIC.
I HAVE BEEN TALKING ABOUT THAT.
I WILL GO ON ABOUT IN A MINUTE.
THOSE ARE THINGS THAT MAKE IT
VOLATILE AND DIFFICULT TO
FORECAST IN THIS TIME.
THIS FORECAST DOES BENEFIT FROM
HAVING THE IMPACT OF THE ACTUAL
2021 REVENUES.
THAT HAS LED TO SOME REBASING
OF BASE AMOUNTS.
EVEN IF WE ASSUME GROWTH RATES
ARE COMPARABLE TO WHAT WE DID
IN PREVIOUS FORECASTS.
WE STARTED FROM A LOWER BASE
AMOUNT IN SOME CASES.
THERE ARE SOME NEGATIVE NUMBERS
AHEAD ON THE FUTURE SLIDE.
TO BE CONSISTENT WITH AND IN
CONCERT WITH RECOMMENDATIONS TO
THE FORECAST OFFICE AND THE
FORECAST COUNCIL WE HAVE USED
THE BASELINE SCENARIO IN THOSE
REVENUES.
NEXT SLIDE.
HERE IS THE REVENUE TABLE.
THESE ARE JUST THE GENERAL FUND
REVENUE TABLES THAT CBO
FORECASTS.
I WANT TO TALK TO A FEW OF THE
ISSUES.
THE NEXT SLIDE, SLIDE SIX, HAS
SOME TALKING POINTS THAT I WILL
TRY TO GO THROUGH NOW.
JUST FOR THE RECORD WITH THOSE
FOLLOWING AT HOME IF YOU MOVE
BACK AND FORTH YOU CAN TRACK.
FIRST OFF IS THE COLUMN WITH
THE RED NUMBERS.
THE RED AND BLACK NUMBERS.
THAT IS THE 2022 APRIL REVISED
FORECAST, RELATIVE TO THE 2022
ADOPTED FORECAST.
YOU CAN SEE THE DIFFERENCES
THERE.
OFF TO THE RIGHT YOU CAN SEE
THE 2023 AND 2024 FORECAST.
THAT WE WOULD LIKE TO SAY AT
THIS POINT, THANKS TO THE SHARP
EYES OF THE STAFF, WE HAVE AN
ERROR IN THE 2021 ACTUALS.
PLEASE DISREGARD THE 2021
ACTUALS.
AT BOTH THIS TABLE AND THE
FOLLOWING TABLE THAT DIRECTOR
DINGLEY WILL BE TALKING FROM ,
AS THOSE NUMBERS ARE NOT QUITE
RIGHT IN ALL CASES.
WE WILL BE WORKING WITH THE
CLERK'S OFFICE TO GET A
CORRECTED VERSION OF THIS
PRESENTATION WITH THE CORRECTIVE
2021 ACTUALS.
>> COMING TO THE DATA I KNOW
THAT HE HAS PLAYED A CRITICAL
ROLE IN THIS ANALYSIS IN YEARS
PAST AS WELL.
THANKS FOR FLAGGING THAT.
I WANT TO MAKE SURE WE ALSO
HAVE A CHANCE TO CIRCULATE THE
REVISED MATERIALS TO THE
COUNCILMEMBER.
WE WILL MAKE SURE TO DO THAT AS
WELL.
TO THE DEGREE THAT THIS NEEDS
TO BE DISCUSSED AGAIN AT THE
NEXT COMMITTEE MEETING.
WE WILL MAKE SURE THOSE REVISED
2021 ACTUALS ARE PRESENTED AS
WELL.
>> THANK YOU.
WE WANT THE RIGHT VERSION OF
THE NUMBERS OUT THERE.
>> EXCUSE ME, SORRY.
CHAIR MOSQUEDA, I WILL ALSO ASK
THE CLERKS TO POST AN UPDATE
AFTER THE COMMITTEE FOR THE
PUBLIC AS WELL.
IT DOESN'T IMPACT OVERALL THE
OUT YEARS.
WE WILL PROVIDE THE UPDATE FOR
THE COUNCILMEMBERS AND THEN THE
UPDATE FOR THE RECORD AS WELL.
>> IS CORRECT.
I APOLOGIZE FOR THE ERROR.
IT'S A TIMELY THING TO DISCOVER.
FIRST ON 2022, THE VARIANCES
BETWEEN 2022 REVISED AND 2022
ADOPTED.
THE FIRST NUMBER THAT I WANT TO
BRING TO YOUR ATTENTION IS THE
PROPERTY TAX.
AND THE EMS LEVY.
YOU CAN SEE A FAIRLY LARGE
ADJUSTMENT THERE.
THE BASIS OF THAT IS BETWEEN THE
PREVIOUS FORECASTS AND THE
ADOPTED FORECAST.
NOW WE HAVE RECEIVED THE FINAL
RATES FROM THE KING COUNTY
ASSESSOR.
WHAT HAS HAPPENED IS THE 2022
RATE HAS DROPPED FROM 26 1/2
CENTS IN 2021 TWO ARRAY OF 24.8
CENTS.
THAT IS ABOUT A 6.3% DROP. THE
WAY SEATTLE RECEIVES ITS
REVENUE IS IT TAKES THAT RATE,
THE TAX RATE FROM THE COUNTY
ASSESSOR.
MULTIPLE TIMES SEATTLE'S
ASSESSED VALUE.
THAT GENERATES SEATTLE'S
REVENUE NUMBER.
WHAT HAS HAPPENED IS THAT RATE
DECREASE IS GREATER THAN THE
RATE INCREASE IN SEATTLE'S AV.
WHEN YOU MULTIPLY THOSE OUT WE
ARE GETTING A SMALLER REVENUE
AMOUNT.
THIS PHENOMENON COULD GO ON FOR
A LITTLE WHILE LONGER BECAUSE
WHAT DRIVES THE RATE OF CHANGE
IS TOTAL KING COUNTY ASSESSED
VALUE.
AS LONG AS KING COUNTY ASSESSED
VALUE IN FULL IS BETTER THAN
SEATTLE'S ASSESSED VALUE WE
WILL SEE THE RATES DECLINE.
DEPENDING ON SEATTLE'S AV
GROWTH WE MAY SEE ANOTHER YEAR
OR SO, WHICH I HAVE FORECASTED
IN 2023 AND 2024, OF DECLINE IN
THE MEDIC ONE EMS LEVY.
MOVING ON.
THE NEXT ONE, PUBLIC UTILITY
TAXES.
JUST SOME POSITIVE NEWS BASED
ON RATE AND USAGE ASSUMPTIONS.
SORRY.
IT'S ON MY NO PAGE HERE.
THIS INCLUDES TRANSPORTATION
NETWORK, COMPANY TAXES.
I WANT TO BRING TO YOUR
ATTENTION THAT THERE IS A NEW
STATE LEGISLATION WHICH REDUCES
THE TAX RATE FROM $.57-$.42.
THIS IS THE CITY'S TAX RATE.
IT'S A $.15 DECREASE.
BUT THE TAX RATE TO THE USER
AND THE DRIVERS WON'T CHANGE
BECAUSE THAT $.15 WILL NOW BE
COLLECTED BY THE STATE.
WE DON'T EXPECT TO SEE ANY
CHANGE IN BEHAVIOR OF USAGE.
THE CITY WILL RECEIVE LESS
REVENUE.
YOU CAN SEE THAT GOING OUT INTO
2023 AND 2024 AS WELL.
THAT IS REALLY WHAT IS DRIVING
THE OTHER TAXES TO DROP THERE.
PLUS THE REBASING OF WHAT
HAPPENED IN 2021 WAS A BIT
LOWER.
WE HAVE REBASED THE FORECAST
AND APPLIED OUR GROWTH RATES.
COURT FINDS.
COURT FINDS IS LARGELY A BASE
REDUCTION IN CITATIONS AND
REVENUES FOR MOST OF THE
CITATION CATEGORIES.
THE CITATION VOLUMES FOR
PARKING HAVE RETURNED TO NEARLY
WHAT THEY WERE PRE-PANDEMIC.
BUT THE OTHER CATEGORIES, OTHER
NON-TRAFFIC, NON-PARKING
INFRACTIONS HAVE DROPPED.
THAT HAS PULLED THE REVENUE
DOWN A LITTLE BIT.
PARKING METERS IS DOWN $3.2
MILLION.
THAT IS LARGELY DUE TO THE
PLANT RATE INCREASES THAT GOT
SHIFTED FROM DECEMBER TO APRIL
OF 2022 THAT WILL BE GOING INTO
EFFECT SOON, IF NOT ALREADY
HAPPENING.
THAT JUST DROPS THAT REVENUE
STREAM. THE RATES, CURRENTLY,
ARE ABOUT 50% OF WHAT THEY WERE
PRE-PANDEMIC.
AS I MENTIONED EARLIER, THAT IS
WHAT IS REALLY DRIVING
DECREASES IN THAT REVENUE STREAM
OR A SLOWER RATE OF INCREASE.
THAT IS SOMETHING WE CAN KEEP
TRACK OF AS WE GO THROUGH TIME.
LICENSES AND PERMITS. THE
DIFFERENCE IS LARGELY DUE TO
THE STREET USE CHANGE. NOT MUCH
TO SAY THERE.
IT'S JUST A LOWER AMOUNT OF
VOLUME.
THE GRANTS ARE FAIRLY STABLE.
THE TRANSFERS ARE IMPORTANT
HERE.
AS YOU LOOK INTO THE OUT YEARS
YOU CAN SEE LARGE DROPS IN
TRANSFERS.
THAT HAS TO DO WITH ONE-TIME
TRANSFERS OCCURRING IN 2021 AND
2022. THAT INCLUDES $64.2
MILLION OF CORONAVIRUS LOCAL
PHYSICAL RECOVERY FUNDS.
AND THEN THE TRANSFER OF
JUMPSTART PAYROLL EXPENSE TAX
MONIES INTO THE GENERAL FUND.
TO THE TUNE OF ABOUT $85.4
MILLION.
THAT INCREASE THE 2022 AMOUNT
IN RELATIVE TO WHAT IS GOING TO
HAPPEN IN 2023 AND 2024.
ALL ELSE IS A BIG CATEGORY.
IT'S GOT A LOT OF UPS AND DOWNS
BUT NOTHING OVERLY SIGNIFICANT.
I WOULD POINT OUT THAT THE 2022
NUMBERS INCLUDE $66.5 MILLION.
I'M SORRY, $65 MILLION OF THE
MERCER PROPERTY SALES PROCEEDS.
BUT SOME OTHER CATEGORIES IN
THERE, INTEREST EARNINGS ARE UP
ABOUT $800,000.
DUE TO EXPECTED INCREASES IN
INTEREST RATES AND A MODEST
INCREASE PERHAPS IN THE BALANCE
IN THE GENERAL FUND.
AND THEN THE EXCISE TAXES ARE
UP AND THAT GIVES YOU A TOTAL
CHANGE FOR THE GENERAL FUND OF
ABOUT $4.1 MILLION, TO THE
NEGATIVE.
WHICH DIRECTOR DINGLEY WILL
SHOW YOU IN THE COMBINED TABLE
HOW THAT ALL ADDS UP.
I THINK GOING OUT TO 23 AND 24
YOU CAN SEE THE CHANGES.
THERE ARE SIGNIFICANT 2023 AND
2024, RELATIVE TO 2022.
LARGELY BECAUSE OF THOSE
TRANSFERS.
AND THE ONE TIME ISSUES.
SO THAT BRINGS US TO THE NON-
GENERAL FUND ITEMS.
IT'S A FAIRLY SHORT LIST.
SHORT-TERM RENTAL TAX IS DOWN.
SORRY.
MY APOLOGIES.
SHORT-TERM RENTAL TAX IS
ESSENTIALLY A BASE REDUCTION TO
REFLECT ACTUALS OF WHAT
HAPPENED IN 2021.
THE SUITE AND BEVERAGE TAX,
WHAT WE HAVE SEEN IS THAT THE
READY TO DRINK BOTTLED DRINKS,
SWEETENED BEVERAGE DRINKS, HAVE
RETURNED TO LARGELY PRE-
PANDEMIC LEVELS.
BUT THE FOUNTAIN DRINKS, WHICH
WOULD YOU WOULD EXPECT, THEY
ARE THINGS YOU GET RESTAURANTS,
McDONALD'S FOR EXAMPLE, WHAT
HAVE YOU.
THOSE HAVE NOT RETURNED NEARLY
AT ALL.
THEY ARE AT ABOUT 59% OF 2019
LEVELS.
WHILE WE SEE THIS REVENUE
STREAM SORT OF HOLD IT HAS GOT
A WAYS TO GO AS PEOPLE SHIFT
THEIR BEHAVIOR.
COMMERCIAL PARKING TAX, AGAIN,
DRIVEN BY WHAT WE EXPECT TO SEE
IN TERMS OF RETURN TO OFFICE.
IT'S CRITICAL HERE.
WE ARE PROJECTING AN INCREASE
OF ABOUT $1.9 MILLION.
WE NOW HAVE 31 CAMERAS IN
OPERATION, FIVE OF THOSE ARE
NEW.
AS PART OF THE ADOPTED BUDGET.
FOUR ADDITIONAL CAMERAS ARE
EXPECTED BUT HAVE BEEN DELAYED
BECAUSE OF THE CONCRETE STRIKE
THAT IS JUST THE CONSTRUCTION
ISSUE OF GETTING THOSE CAMERAS
PUT IN PLACE.
WE ARE SEEING A DROP IN
REVENUES THERE AS WE LOSE THE
REVENUES FROM ABOUT FOUR
CAMERAS.
AND THEN THE VEHICLE LICENSE
FEE, JUST A SMALL ADJUSTMENT
BASED ON ACTUALS FROM 2021.
SO WITH THAT I THINK THAT
CONCLUDES MY SECTION.
IF THERE ARE ANY QUESTIONS I
WOULD LOVE TO ANSWER THEM.
>> THANKS SO MUCH, DAVE.
I SEE A QUESTION FROM VICE
CHAIR HERBOLD.
GO AHEAD.
>> THANK YOU.
I JUST WANT TO FLAG ON THIS
SLIDE HERE THAT ON THE
AUTOMATED CAMERA ENFORCEMENT, I
NOTICED THIS IS LIMITED TO
SCHOOL ZONE CAMERA FUNDS.
I'M WONDERING, DO WE HANDLE OUR
OTHER AUTOMATED CAMERA REVENUE
DIFFERENTLY?
WHERE IS THAT ACCOUNTED FOR?
WE ALSO HAVE RED LIGHT CAMERAS
AND TRANSIT CAMERAS, WHICH ARE
NEW.
I WANT ALSO FLAG THAT THERE IS
AUTHORIZING LEGISLATION THIS
YEAR TO ALLOW BOTH EXPANSION OF
THE OVERALL CAMERAS, AUTOMATED
CAMERAS THAT JURISDICTIONS ARE
ALLOWED TO HAVE ACCORDING TO
THE POPULATION.
AND THERE ARE DIFFERENT TYPES
OF CAMERAS.
THEY ARE NOT GOING TO ALLOW THEM
FOR SPEEDING.
IN PARKS OWNS AND A COUPLE OF
OTHER EXPANDED AREAS.
SOME BOTH EXPANDED THE
GEOGRAPHIC AREAS AND TOTAL
NUMBER OF CAMERAS.
FLAGGING THAT BUT ALSO
INTERESTED IN WHY THIS IS
RESTRICTED TO SCHOOL ZONE ONLY
CAMERAS AND NOT THE OTHER TYPES
OF CAMERA REVENUE.
>> RIGHT.
THE SCHOOL ZONE CAMERAS ARE
TRACKED.
THAT IS WHY THEY ARE HERE ON
THIS.
THE RED LIGHT CAMERAS ARE PART
OF THE GENERAL FUND.
THAT AMOUNT IS UP IN THE
GENERAL FUND.
EXCEPT FOR THE 20% THE COUNSEL
DESIGNATED SHOULD GO TO THE
SCHOOL ZONE CAMERAS.
UP IN COURT FINDS ARE THE
REDLINE CAMERAS.
>> FANTASTIC.
THANK YOU FOR THAT.
>> WE ARE TRACKING THE OTHERS.
>>> IT GOES INTO OUR FISCAL
RESERVES, RIGHT?
>> THE $85.4 MILLION TO THE
GENERAL FUND FOR THE 2022
BUDGET WAS INTO THE GENERAL FUND
TO SUPPORT GENERAL
EXPENDITURES.
THAT WAS PER THE POLICY THAT
ALLOWED FOR SOME RELIANCE ON THE
JUMPSTART FUND IF REVENUES WERE
PROJECTED TO BE BELOW A SPECIFIC
AMOUNT, ABOUT $1.5 BILLION.
THAT WAS THE AUTHORIZED AMOUNT
PER POLICY WHEN THE COUNCIL WAS
ADOPTING A BUDGET.
RIGHT NOW BASED ON THIS
FORECAST UPDATE, THAT POLICY IN
THE JUMPSTART FUND WOULD NOT
AUTHORIZE ANY TRANSFER FROM THE
JUMPSTART FUND TO THE GENERAL
FUND IN 2023 AND BEYOND.
>> GREAT.
OKAY.
THIS IS SHOWING THE AMOUNT THAT
WENT INTO THE GENERAL FUND AND
THE OTHER PORTION OF THAT WHEN
INTO THE RESERVES WHICH IS NOT
SHOWN HERE.
>> THIS IS FOR THE 2020 TO
ALLOCATIONS, NOT THE 2021
ACTUALS, WHICH WE WILL TALK
MORE ABOUT AT THE NEXT MEETING.
SOME OF THE 2021 ACTUALS WERE
USED TO REPLENISH FISCAL
RESERVES AND PER POLICY,
BECAUSE THE 2021 REVENUES GO
INTO THE GENERAL FUND, A
PORTION OF THOSE WOULD ALSO GO
BACK TO HELP REBUILD OUR FISCAL
RESERVES.
>> GREAT.
SO TO REMIND MYSELF AND OTHERS,
TODAY IS PART ONE.
PART TWO WILL BE DISCUSSED MAY 4
AND WE SEE THE FULL PICTURE.
ALL RIGHT, IT IS JUST AFTER
11:00.
I AM THANKFUL FOR ALL OF THE
QUESTIONS. WE HAVE ANOTHER
SECTION SO WE'RE GOING TO
TURNED BACK OVER TO DIRECTOR
JULIE DINGLEY TO WALK US
THROUGH THE PRESENTATION.
I APPRECIATE THERE IS SOME
FLEXIBILITY AS WELL . THANK YOU
VERY MUCH, WILLIAM, IF WE DON'T
GET TO THE IMPLEMENTATION
REPORT OUT FOR THIS MEETING, WE
CAN INCLUDE THAT ON ART MAY 4
MEETING.
AND MIGHT BE A NICE TIE IN TO
EXPENSES WHERE MONEY IS
CURRENTLY GOING, THE OVERALL
PICTURE FROM ALY PENNUCC AND
TOM AS WELL.
COLIC 72 RUSH THROUGH QUESTIONS
OR HOLD BACK ON REVENUE BECAUSE
IT'S A LOT OF NEW INFORMATION
WE ARE GETTING FROM CBO AND
THEN WE WILL HAVE TIME FOR
DISCUSSION AS WELL.
I WANTED TO FLY, IF WE NEED
ADDITIONAL TIME TO ASK
QUESTIONS AND GO THROUGH THE
REMAINDER OF THE PRESENTATION
WE ARE FLEXIBLE ON MOVING THAT
PRESENTATION OVER.
THANKS AGAIN TO WILLIAM AND CBO
FOR THAT.
DIRECTOR JULIE DINGLEY, I'M
GOING TO TURN OVER TO YOU TO
KEEP US GOING IN THE
PRESENTATION.
>> THANK YOU SO MUCH.
THIS IS WHAT YOU HAVE BEEN
WAITING FOR I BELIEVE, THIS IS
THE FULL PICTURE, FULL APRIL
REVENUE UPDATE THAT INCLUDES
REVENUES FORECAST BY DIRECTOR
NOBLES TEAM YOU HEARD IN THE
FIRST PRESENTATION.
THOSE ARE HERE REPRESENTED IN
THE GREAT SHADED LINES.
AS WELL AS THE ONES THAT DAVE
JUST WALKED YOU THROUGH ON ALL
OF THAT CBO FORECASTED
REVENUES.
THOSE ARE INDICATED HERE IN
BLUE.
I WANT TO DRAW YOUR ATTENTION
TO THE FOURTH COLUMN, REVISED
MINUS ADOPTED.
AS YOU CAN SEE THE COMBINED
CHANGE IN 2022 REVENUES IN THE
GENERAL FUND IS INCREASE OF
$25.5 MILLION RELATIVE TO THE
2022 ADOPTED BUDGET.
THE OTHER THING I WANTED TO
MENTION WITH THIS TABLE IS, AS
DAVE MENTIONED, IT IS WORTH
HIGHLIGHTING THAT THERE IS A
SIGNIFICANT DROP FROM 2022
REVISED TO THE 2023 FORECAST.
THAT IS DRIVEN BY LARGE CHANGES
IN THE ONE-TIME TRANSFERS IN
THE ALL ELSE CATEGORY FROM THE
LOSS OF THE PROCEEDS FROM THE
MERCER BLOCK SALE AND OTHER
SIGNIFICANT TRANSFERS THAT WERE
PART OF THAT 2022 FORECAST
OVERALL.
ADJUSTING FOR THE ONE-TIME
SOURCES, 2023 GENERAL FRONT
REVENUES ARE REJECTED TO
INCREASE 5.5% OVER 2022.
GROWTH IN 2024 IS PROJECTED TO
SLOW TO APPROXIMATELY 2.8% FOR
ALL SOURCES.
I'M NOT GOING TO WALK THROUGH
THE LINE ITEMS BECAUSE YOU'VE
HEARD ABOUT EACH OF THOSE
LINES.
BUT OF COURSE WE CAN TAKE
ADDITIONAL QUESTIONS.
I DO WANT TO GET INTO NOW A
LITTLE CONTEXT AROUND WHAT
THESE NUMBERS ARE.
AGAIN, WE HAVE HEARD ALL OF
THIS BUT INDULGE ME IF WE CAN
GO TO THE NEXT SLIDE.
THIS REVENUE FORECAST PROVIDES
THE BASIS FOR US WORKING TO
DEVELOP A BALANCE FOR 2023 AND
2024 PROPOSED BUDGET.
IT WILL ALSO BE INFORMED BY AN
UPDATED FORECAST IN AUGUST AND
THE ULTIMATE ADOPTED UPDATED BY
A FORECAST IN NOVEMBER.
IS MENTIONED AT THE TOP,
REVENUES ARE ONLY HALF OF THE
PICTURE HERE.
EXPENDITURE ALSO MATTERS.
AS YOU HEARD FROM DIRECTOR
NOBLE, INFLATION IS AT A 30
YEAR HIGH AND AFFECTS BOTH
REVENUES AND EXPENDITURES.
RISING PRICES BOOST INFLATION
BASED TAXES SUCH AS SALES TAX.
IT DRIVES UP THOSE NUMBERS.
IT ALSO PUTS PRESSURE ON THE
BUYING POWER FOR WAGES.
SAID ANOTHER WAY, WE HAVE MORE
MONEY BUT EVERYTHING COSTS MORE.
IT'S SORT OF CONSCIOUS GUARDED
OPTIMISM AS WE GO INTO THE
FUTURE INTO PLANNING.
SO, WE ARE ALSO -- THIS ALSO
AFFECTS CITY LABOR CONTRACTS,
MANY OF WHICH ARE OPEN AND
NEGOTIATIONS ONGOING.
ALL OF THE CITIES COSTS ARE
EXPECTED TO INCREASE.
ARE REVENUES CONTINUE TO
RECOVER FROM THE PANDEMIC.
HOWEVER, THE EXPENSE GROWTH IS
OUTPACING THE REVENUE GROWTH.
THAT LEADS TO STRUCTURAL GAPS
IN THE GENERAL FUND.
AND WITH THE ONE-TIME SOURCES
ALREADY MENTIONED THAT ARE NO
LONGER AVAILABLE IN 2023, THAT
LEADS US TO THE CONVERSATION WE
HAVE BEEN HAVING ABOUT HOW TO
MOVE FORWARD.
THAT IS GOING TO BE THE SUBJECT
OF THE FOURTH CONVERSATION AT
THE NEXT FINANCE MEETING WHEN
WE GET A MORE GENERAL FUND
BALANCING UPDATE WITH CENTRAL
STAFF.
>> DO YOU MIND STOPPING HERE
FOR A MINUTE?
>> OF COURSE.
THAT IS THE END OF MY.
HAPPY TO TAKE QUESTIONS.
>> THANK YOU FOR WALKING US
THROUGH THIS.
THERE'S A LOT OF ANTICIPATION
FOR THE MAY 4 MEETING.
I WAS GOING TO MAKE A STAR WARS
JOKE, BUT I DON'T KNOW.
>> VERY TEMPTING.
>> I KNOW THERE'S A LOT OF
ANTICIPATION FOR THAT
CONVERSATION.
WE DID WANT TO MAKE SURE
CENTRAL STAFF AND THE TEAM HAD
A CHANCE TO HEAR BOTH OF THESE
PRESENTATIONS, REALLY CRUNCH
THE NUMBERS AND COME BACK TO US
TWO WEEKS FROM NOW WITH THE
FULLER PICTURE FOR WHAT IT
MEANS FOR CURRENT EXPENSES AND
FOR A SIX-YEAR LOOKOUT.
THAT IS WHY PART ONE TODAY,
PART TWO MAY 4. I KNOW THERE'S
A LOT OF EAGERNESS TO SEE HOW
THE EXPENSES FACTOR IN.
I'M GOING TO ALSO ASK ALY
PENNUCC AND TOM TO ADD TO THE
COMMENT BEFORE TURNING IT OVER
TO COUNCILMEMBER PEDERSEN AND
COUNCILMEMBER HERBOLD . GIVE
ANYTHING ELSE YOU WOULD LIKE TO
ADD ABOUT WHAT IS GOING TO BE
EXPECTED ON MAY 4 BEFORE WE
TURN OVER TO HER COLLEAGUES?
>> THANK YOU.
AS DIRECTOR JULIE DINGLEY
NOTED, WE ARE WORKING WITH CBO
TO UPDATE THIS YEAR'S
FINANCIAL PLAN, MAKING SURE
BOTH IN THE LEGISLATIVE BRANCH
AND EXECUTIVE BRANCH THEY
UNDERSTAND THE ASSUMPTION AND
AGREE ON THE ASSUMPTION FOR THE
SIX YEAR FINANCIAL PLAN FOR
BOTH THE REVENUE SIDE AND
EXPENDITURE SIDE.
ALSO FACTORING IN POTENTIAL
DECISIONS AROUND THE
CARRYFORWARD ORDINANCE.
THAT WILL INDICATE ON MAY 4, IT
WILL GIVE YOU AN UPDATE ON WHERE
-- WHAT WE ARE PROJECTING IN
TERMS OF THE GAP BETWEEN
GENERAL FUND REVENUES AND
GENERAL FUND EXPENDITURES.
I WILL JUST NOTE, YOU HAVE ALL
HEARD ME SAY THIS BEFORE, BUT I
WILL SAY IT AGAIN, I ENCOURAGE
YU NOT TO FIXATE TOO MUCH ON
SPECIFIC NUMBERS.
THIS IS THE FIRST OF THREE
FORECAST UPDATES THAT THE
COUNCIL WILL RECEIVE PRIOR TO
ADOPTING A BUDGET THIS FALL.
GIVEN SOME OF THE UNCERTAINTY,
THESE NUMBERS MAY CONTINUE TO
FLUCTUATE.
WHAT WE WILL BE DISCUSSING MAY
4 IS BOTH THE UPDATED NUMBER,
WE WILL ALSO LIKELY PRESENT
SOME SCENARIOS, LIKE WHAT IF
CERTAIN ASSUMPTIONS OR FACTORS
CHANGE?
AND BEGIN TO HIGHLIGHT SOME OF
THE STRATEGIES THAT THE COUNCIL
AND MAYOR MAY WANT TO CONSIDER
TO INFORM THE BUDGET
DELIBERATIONS THIS FALL.
BUT ALSO SPENDING DECISIONS
THAT WILL COME UP DURING 2022.
IN JUNE WE EXPECT TO RECEIVE
THE MIDYEAR SUPPLEMENTAL BUDGET
ORDINANCE FOR EXAMPLE.
WE ARE SORT OF CHARTING NEW
TERRITORY BY REALLY STARTING
PUBLIC DISCUSSIONS OF THE SIX
YEAR FINANCIAL PLAN THAT WE
HOPE TO CONTINUE ON A REGULAR
BASIS AS WE ARE RECEIVING THESE
REVENUE FORECASTS AND IN THE
CONTEXT OF THE COUNCIL
DECISIONS.
HOPEFULLY IN THE LONG TERM WE
WILL AVOID CONTINUING THESE
STRUCTURAL BUDGET CHALLENGES
BUT IT'S GOING TO BE A LITTLE
BUMPY ALONG THE WAY.
ON THE FOURTH WE HOPE TO HAVE
THE JOINT PRESENTATION WITH
DIRECTOR JULIE DINGLEY.
I WILL TURN OVER TO MY
COLLEAGUE, TOM, TO SEE IF HE
HAS ANY COMMENTS TO ADD.
>> THANK YOU, ALY.
GOOD MORNING MEMBERS OF THE
COMMITTEE.
TOM MIKESELL, CENTRAL STAFF.
NOT TOO MUCH TO ADD TO WHAT
ALY MENTIONED, LOOKING FOR TO
THE EXERCISE ON MAY 4. I DID
WANT TO ACKNOWLEDGE AND
APPRECIATE THE DETAILED
INFORMATION THAT SHARING FROM
THE OFFICE OF ECONOMIC AND
REVENUE FORECAST AND THE NEW
BUDGET OFFICE, THAT IS CRUCIAL
IN SUCH AN ENDEAVOR WE ARE
EMBARKING ON AND I WANT TO LIFT
THAT UP BECAUSE IT IS MUCH
APPRECIATED.
ALSO, JUST ONE ADDITIONAL
COMMENT, IN LOOKING AT THESE
FINANCIAL PLANS, I WOULD JUST
MENTION THAT REVENUES FOR SOME
OF OUR MAJOR REVENUE CATEGORIES
THAT HAVE BEEN COVERED TODAY,
POVERTY TAXES, SALES TAX AND
PNO TAX ARE PROJECTED TO BE
HIGHER IN 2023 AND THEY WERE
PROJECTED TO BE IN THE FALL OF
2019.
THERE IS A DIVERGENCE IN THE
ECONOMY THAT HAS NOT QUITE
CONVERGED. LARGELY DUE TO WORK
FROM HOME AND THAT NATURE, AND
CERTAINLY DIFFERENCES DUE TO
HIGHER INFLATION AS WELL.
WE LOOK FORWARD TO EXPLORING
THESE AND MANY OTHER TOPICS.
>> THANK YOU SO MUCH.
I WILL UNDERSCORE MY
APPRECIATION FOR CBO AND THE
NEW REVENUE FORECAST OFFICE.
IN CENTRAL STAFF WHO HAVE BEEN
LEADING THE WAY IN THE LAST TWO
YEARS AS WE TALK WITH DIRECTOR
JULIE DINGLEY AND HOW WE CAN
MOVE TO A TRUE BIANNUAL
BUDGETING PROCESS.
WE TALK ABOUT BIANNUAL
BUDGETING BUT IN ACTUALITY WE
HAVE A 12 MONTH CALENDAR
BUDGET.
I THINK HAVING TRUE ANNUAL
BUDGETS WILL BE A GOOD STEP
THAT WE CAN ALL WORK TOWARD.
I THINK THE PRESENTATION ON THE
FOURTH WILL DO A REAL PUBLIC
PRESENTATION ON THE SIX YEAR
OUTLOOK.
IT WILL HELP US CREATE GREATER
STABILITY IN TERMS OF OUR
BUDGETING PROCESSES, NOT JUST
FOR THE NEXT TWO YEARS BUT
LOOKING OVER THE COURSE OF THAT
SIX YEARS TO COME AND HOW WE
CAN CREATE GREATER STABILITY IN
REVENUE STREAMS FOR GOVERNMENT
INVESTMENTS.
FINALLY, I JUST WANT TO NOTE
OUR APPRECIATION FOR THE HARD
WORK THAT FOLKS ARE DOING
COLLECTIVELY ON THE EXECUTIVE
AND LEGISLATIVE BRANCH SIDE TO
MAKE SURE WE ARE BEING
TRANSPARENT IN THESE
DISCUSSIONS AND THAT WE AS A
COUNCIL AND THE EXECUTIVES ARE
GETTING INFORMATION IN REAL TIME
WITH ALL THE COUNCILMEMBERS TO
MAKE COLLECTIVE DECISIONS.
THINK THIS IS GOING TO LEAD TO
A MORE ACCOUNTABLE BUDGETING
PROCESS AND A LOT OF STABILITY
IN THE YEARS TO COME.
SO, I SEE A NUMBER OF HANDS.
I WANT TO THANK WILLIAM FOR THE
OPPORTUNITY TO LOOK AT THE
AMERICAN RESCUE PLAN ACT AND
PLANTATION EFFORTS.
WE ARE GOING TO HOLD THE NEXT
ITEM FOR THE NEXT COMMITTEE
MEETING AND WE WILL SPEND THE
NEXT 20 MINUTES GOING THROUGH
QUESTIONS COUNCIL MEMBER'S
HAVE.
COUNCILMEMBER PEDERSEN EUROPE
FOLLOWED BY COUNCILMEMBER
HERBOLD .
>> THANK YOU.
THANK YOU FOR YOUR COMMENTS AND
SETTING THE TABLE FOR THE NEXT
MEETING AS WELL.
TALKING ABOUT EXPENDITURES SO
WE HAVE THE FULL PICTURE.
COULD WE PULL UP THE SLIDE NINE
FROM THE PRESENTATION, THAT IS
THE ONE THAT HAS ALL THE
REVENUES THANK YOU VERY MUCH.
ON THIS, IN THE MIDDLE OF THE
SLIDE, 2020 TO REVISE NUMBER
WITH 1.671 MILLION, I WAS
INTERESTED IN COUNCILMEMBER
NELSON'S QUESTION ABOUT WHAT
WOULD BE A TYPICAL BUDGET IF
WE TAKE OUT THE EXTRA OF THE
COVID PANDEMIC FOR EXAMPLE, SO
I DUG UP THE 2019 ACTUALS WHICH
YOU CAN GET BASH I THINK I HAD
TO GO TO THE BUDGET ARCHIVES,
THERE IS AN APPENDIX, I THINK
IT'S PAGE 7 UNDER THE APPENDIX,
BUT IT'S SHOWING TOTAL REVENUES
OF ABOUT $1.4 MILLION.
AND SO, THIS IS PRE-COVID, $1.4
MILLION 2019 ACTUAL REVENUE.
SO WE ARE IN A GOOD POSITION
WITH REVENUES IT APPEARS, WHERE
WE ARE UP TO $1.6 MILLION
REVISED 2022.
AND THEN WE HAVE THE FORECAST
OF $1.5 MILLION, AGAIN, THAT IS
HIGHER THAN THE $1.4 MILLION WE
HAD PRE-COVID.
AND SO, THIS IS EVEN BEFORE --
INCLUDING THE NEW PAYROLL TAX
-- SO I GUESS WHAT I AM SITTING
HERE IS THAT SEATTLE DOES NOT
HAVE A REVENUE PROBLEM, BUT WE
POTENTIALLY HAVE AN EXPENDITURE
PROBLEM BECAUSE OF ALL THE
GREAT NEEDS WE HAVE.
SO, MAY 4 WILL BE VITAL IN
TERMS OF HOW WE ARE GOING TO
LIVE WITHIN OUR MEANS, SPEND
WITHIN OUR MEANS WITH OUR
BUDGET.
I DID WANT TO TRY TO UNPACK A
COUPLE OF LINE ITEMS HERE.
I KNOW IT IS HARD TO FIT
EVERYTHING INTO A POWERPOINT
AND TO COMPARE APPLES TO APPLES,
BUT THE TWO LINE ITEMS, ONE IS
CALLED TRANSFERS AND THE OTHERS
CALLED ALL ELSE.
WHEN WE SEE THE REVENUE, THOSE
LINE ITEMS GOING DOWN 2022 TO
2023, JUST CURIOUS, HOW WE ARE
GETTING THE HUNDRED $87 MILLION
DOWN TO $127 MILLION.
AND THEN IF YOU COULD EXPLAIN
THAT THAT WOULD BE GREAT AND IF
NOT YOU COULD GET BACK TO US.
THIS IS FOR JULIE DINGLEY.
>> YOU PROBABLY HAVE THE
SPECIFICS, DO YOU WANT TO ENTER
THAT , DAVE?
>> IN THE $187 MILLION OF
TRANSFERS IN THE 2022 REVISED
COLUMN, ABOUT $150 MILLION
WORTH OF ONE-TIME TRANSFERS OF
THE CLIFFORD FUNDS, THE UPPER
SKAGIT INDIAN TRIBE FUNDS FROM
THE FEDERAL GOVERNMENT, AS
WELL AS THE JUMPSTART PAYROLL
EXPENSE TAX TRANSFER, THOSE ARE
$64.2 MILLION FOR THE CLFR
FUNDS AND THE PERIL ASKED --
THE PAYROLL EXPENSE ONES.
THOSE GO AWAY IN 2023.
ONE-TIME SOURCES THAT JUST
WON'T BE AVAILABLE.
>> AS WELL AS THE $65 MILLION
FROM THE MERCER MEGA BLOCK
SALE.
THOSE ONE-TIME TRANSFERS AND
ALL ELSE ARE REALLY BOOTING THE
2022 REVENUES.
IT IS ARTIFICIALLY HIGH IF YOU
WILL BECAUSE THEY ARE ONE TIME.
THEY ARE NOT PART OF THE BASE
REVENUE FORECAST WE WOULD
EXPECT WE COULD APPLY, OR OTHER
ECONOMIC FACTORS TO DEVELOP.
>> IF I MAY FOLLOW-UP.
WHEN YOU SAY THE JUMPSTART WILL
NOT BE AVAILABLE, IT'S AN
ONGOING REVENUE SOURCE, WHY
WOULD IT NOT BE AVAILABLE?
>> IS A REVENUE TO THE GENERAL
FUND.
STARTING IN 2022 JUMPSTART,
ALY PENNUCC CHECKED ME HERE.
IT'S ITS OWN FUND.
THERE IS A ONE TIME TRANSFER
GOING INTO BALANCE 2022.
IN 2023 THAT TRANSFER IS NO
LONGER IN PLACE, IT IS FULLY
ITS OWN FUND AND PROGRAMMED THE
CURRENT LAW TO BE SPENT AMONG
THE FOUR SPENDING CATEGORIES OF
THE SPENDING ORDINANCE.
>> COUNCILMEMBER PEDERSEN THIS
IS PART OF THE CODIFIED
IMPLEMENTATION PLAN THAT WE
ALL WORKED ON TO ENSURE THAT
THE PERCENTAGES THAT WERE
ALLOCATED IN THE ORIGINAL
SPENDING PLAN, THE DETAILED
PLAN WE PUT TOGETHER WERE
CODIFIED WITH THE STATUE.
AND JUST VERY BRIEFLY BECAUSE I
HAVE OTHER HANDS UP, ALY, IF
YOU COULD REMIND FOLKS ABOUT
THE RELEASE VALVE WE PUT IN IF
REVENUE PROJECTIONS COME IN
LOWER THAN ANTICIPATED.
THAT IS PART OF OUR SPEND
PLANNED AS WELL.
>> THANK YOU.
AS JULIE DESCRIBED, IN 2022 THE
PAYROLL TAX REVENUES GO INTO
THEIR OWN FUND AND THEIR
POLICIES CODIFIED IN LAW THE
DICTATE HOW THE REVENUES CAN BE
SPENT.
CONSISTENT WITH THE SPENDING
PLAN ADOPTED WHEN COUNCIL WAS
PASSING THE PAYROLL TAX IN
2020.
ONE MODIFICATION TO THE
ORIGINAL SPENDING PLAN WAS THE
RELEASE VALVE THAT SAID IF
GENERAL FUND REVENUES DROP
BELOW A SPECIFIC AMOUNT, $1.51
BILLION I BELIEVE, THEN THE
DIFFERENCE BETWEEN THE CURRENT
FORECAST AND THAT NUMBER CAN BE
TRANSFERRED INTO THE GENERAL
FUND.
SO FOR THE 2022 BUDGET, WHEN
THE COUNCIL WAS CONSIDERING
THAT BUDGET THIS PAST FALL,
THAT ALLOWED $85 MILLION OF
JUMPSTART FUNDS TO BE
TRANSFERRED TO THE GENERAL FUND
CONSISTENT WITH THE FUND
POLICIES.
NOW WITH THE UPDATED FORECAST,
GENERAL FUND REVENUE
PROTECTIONS ARE ABOVE THAT
AMOUNT, SO THE CURRENT POLICY
WOULD NOT ALLOW FOR ANY
TRANSFER FROM THE JUMPSTART
FUND TO THE GENERAL FUND FOR
2023 AND BEYOND.
>> AND A CAVEAT ON THAT,
INITIAL REVENUE PROJECTION.
>> CORRECT.
>> I'M GOING TO KEEP US GOING
BECAUSE I HAVE A HARD STOP AT
11:30.
LET'S TRY TO GET COUNCIL OF HER
QUESTIONS IN HER.
PLEASE GO AHEAD.
>> JUST ONE POINT TO MAKE AND
ONE QUESTION, AS IT RELATES TO
THE QUESTION OF FIXATING ON
NUMBERS AND THE ADVICE THAT WE
DON'T DO SO BECAUSE WE ARE
GOING TO BE GETTING FUTURE
FORECAST, I WANT TO CLARIFY,
THERE IS ALSO, AS I ALLUDED TO
EARLIER, MY FIXATION ON NUMBERS
IS REALLY RELATED TO WHAT'S
HAPPENING THIS YEAR WITH THE
COUNCILS ADOPTED BUDGET.
MY CONCERN THAT THERE IS SORT
OF THIS ONGOING CONVERSATION
ABOUT WHERE WE NEED TO DO
SPENDING PAUSES.
WHEN I AM TRYING TO GET AT
THOSE SPECIFIC NUMBERS, PART OF
IT IS ABOUT MY INTEREST IN
ADVOCATING FOR SPENDING ON THE
COUNCIL PRIORITIES IN OUR
BUDGET.
I MAY CONTINUE TO ZONE IN ON
SOME OF THOSE QUESTIONS.
WITH THE FULL UNDERSTANDING
THAT THE 2023 PICTURE IS GOING
TO BE INFORMED BY FUTURE
FORECASTS.
MY QUESTION IS, GOING BACK TO
THE WHAT DOES IT ALL MEAN
SLIDE, AND THE RECOGNITION THAT
INFLATION AFFECTS BOTH REVENUES
AND EXPENDITURES, I AM ASSUMING
THEY DON'T IMPACT BOTH EQUALLY
OR ELSE IT WOULD BE A WASH AND
I DON'T THINK IT IS A WASH.
I AM WONDERING, HOW DO YOU
ACCOUNT FOR THE IMPACT?
OF INFLATION AND WHAT ARE SORT
OF THE PRINCIPLES GOING INTO
THAT SUGGESTION THAT WE NEED TO
BE CONSIDERING HOW INFLATION
IMPACTS REVENUES?
>> IT'S A GREAT QUESTION.
IS THE QUESTION I THINK IS AT
THE TOP OF ALL OF OUR MINDS.
WHEN WE ARE PULLING IN MORE
DOLLARS, IN A NOMINAL SENSE
BECAUSE OF INFLATION,
EVERYTHING IS COSTING MORE SO
THE SALES TAX PERCENTAGE IS
GENERATING MORE REVENUE.
THAT COMES IN.
IT COSTS MORE FOR PEOPLE TO GO
ABOUT THEIR LIVES.
AND WHEN THOSE COSTS REACH A
CERTAIN POINT IT WILL CHANGE,
IT COULD CHANGE CONSUMER
BEHAVIOR AND HOW THEY CHOOSE TO
CONSUME PRODUCTS IF THEY ARE
MORE EXPENSIVE, IF THERE
OUTSIDE OF THEIR BUDGET.
WE DON'T KNOW IS HOW THAT WILL
IMPACT EVERYTHING.
THAT IS ONE OF THE
CONSIDERATIONS, I DON'T KNOW IF
YOU HAVE OTHER THINGS YOU WOULD
ADD?
>> NO NO, JUST THAT THE
EXPENDITURES THE GOING TO THE
BUDGET ARE DISTINCT TO THE
CITY.
WAGES, THE COSTS WE ARE PAYING.
AND SO, WHILE THERE IS THE
GENERAL NOTION OF INFLATION,
THE ACTUAL COSTS WILL BE
CAPTURED OVER THE COURSE OF THE
SUMMER AND INTO THE FALL OF
WHAT ACTUAL COSTS ARE GOING TO
BE PROJECTED BY DEPARTMENTS
WILL BE DIFFERENT.
I DON'T KNOW THAT THERE ARE
PRINCIPLES OF HOW YOU MANAGE
THAT OTHER THAN TO KEEP YOUR
INFORMATION AS UPDATED AS
POSSIBLE.
ALONG THE WAY.
>> ONE OTHER THING I WOULD ADD
IS THAT THE INCREASE IN COSTS
IS NOT JUST LIMITED TO
INFLATION.
IT IS ALSO SUPPLY CHAIN ISSUES
AS WELL.
ALTHOUGH WE MIGHT SEE INFLATION
AT 7%, WE MIGHT HAVE IN A
SUPPLY-CHAIN SITUATION WHERE
IT'S DIFFICULT TO GET CERTAIN
RAW MATERIALS FOR OUR CAPITAL
PROJECTS, THE COST THERE,
BECAUSE OF THE SUPPLY-CHAIN
DECREASE IN SUPPLY MIGHT HAVE
SIGNIFICANTLY HIGHER COSTS TO
ACQUIRE THOSE MATERIALS.
SO IT CAN BE ALSO A BIT LUMPY.
>> I UNDERSTAND THAT YOU ARE
SAYING WE DON'T KNOW.
BUT, YOU ARE MAKING SOME
ASSUMPTIONS FOR THIS
PROJECTION.
I JUST WANT TO UNDERSTAND, IS
THE ASSUMPTION THAT THE IMPACTS
ARE A WASH?
OR IS THERE AN ASSUMPTION THAT
THE COST TO PURCHASE GOODS IS A
GREATER INCREMENT THAT THE
INCREASE IN THE VALUE OF OUR
REVENUES?
OR THE OTHER WAY AROUND.
I AM ASKING WHAT THE
PROJECTIONS ARE BASED ON.
>> I ALSO SEE INTERIM DIRECTOR
JULIE DINGLEY, EXCUSE ME,
INTERIM DIRECTOR JULIE DINGLEY
FOR HAS HER HAND RAISED AS
WELL.
>> YOU ARE FREE TO ANSWER THAT.
I INVITE YOU TO ANSWER THAT
SPECIFIC QUESTION.
WHAT I WAS GOING TO NOTE IS,
AND MAYBE I WILL SPEAK TO THE
WORK THERE OFFICE DID ON
PROVIDING INPUTS ON TERMS OF
THE INFLATION ASSUMPTIONS FOR
THE REVENUE FORECAST SIDE OF
THE EQUATION, IT WILL ALSO
INFORM EXPENDITURE DISCUSSIONS.
THE FINANCIAL PLAN INCLUDES
ASSUMPTIONS, IF WE DON'T DO OUR
BEST TO HIGHLIGHT THOSE
ASSUMPTIONS WHEN WE ARE
PRESENTING THE FORECAST IN A
COUPLE OF -- EXCUSE ME THE
FINANCIAL PLAN IN A COUPLE OF
WEEKS INCLUDING WHERE IT'S NOT
JUST A WASH BETWEEN ASSUMPTIONS
AROUND REVENUES AND THE
EXPENDITURES TO HIGHLIGHT SORT
OF HOW THAT IS MAYBE A BIGGER
IMPACT, THAT IT'S IMPACTING
EXPENDITURES FOR EXAMPLE
>> LET'S MAKE SURE THIS IS A
KEY PIECE THAT WE COME BACK TO
IN THE PRESENTATION ON MAY 4.
THANK YOU VERY MUCH.
COUNCILMEMBER LEWIS, PLEASE GO
AHEAD.
>> THANK YOU SO MUCH, MADAM
CHAIR.
I HAVE QUESTIONS ABOUT THIS
PRESENTATION, I DO APPRECIATE
THE THOROUGHNESS OF THIS AND
THE CONVERSATION ABOUT THE
EXTERNAL FACTORS THAT ARE
IMPACTING THE UNCERTAINTY IN
THE CURRENT ECONOMIC CLIMATE.
MY COMMENTS GO SOMEWHAT TO THE
SAME PLACE AS COUNCILMEMBER
PEDERSEN'S COMMENTS EARLIER.
AND REALLY LOOK FORWARD TO THE
CONVERSATION WE ARE GOING TO
HAVE, NOT ONLY IN THE FALL BUT
ALSO COMING UP IN THE LATE
SPRING/EARLY SUMMER AROUND
SUPPLEMENT A BUDGET.
I REALLY JUST WANT TO MAKE SURE
THAT GIVEN ALL THESE EXTERNAL
FACTORS AROUND REVENUE AND ALSO
GIVEN POTENTIAL CRUNCHES AROUND
EXPENDITURES WE ARE TAKING THE
TIME TO BUILD STRATEGIC
SUPPLEMENTAL AND LONG-TERM
BUDGET THAT IS DESIGNED TO
REALLY THIS PROPORTIONALLY
TACKLE AND REFLECT THE CURRENT
CHALLENGES THE CITY IS FACING.
IF THAT REQUIRES A CERTAIN
AMOUNT OF CONSOLIDATION IN
OTHER LINES OF CITY BUSINESS
THAT ARE RELATED TO PUBLIC
SAFETY AND HOMELESSNESS, I
THINK THAT IS A SACRIFICE THE
COUNCIL AND CITY SHOULD BE
WILLING TO EXPLORE.
I THINK A CREDIBLE CASE CAN BE
MADE THAT SEATTLE'S FUNDAMENTAL
ECONOMICALLY REFLECTED IN HOW
WE BRING REVENUE IN, COULD BE
EXPANDING EVEN MORE AND WE
COULD HAVE A DECADE OF REALLY
GREAT GROWTH IN OUR GENERAL
FUNDS THAT ALLOWS US TO TACKLE
OTHER CHALLENGES LIKE CLIMATE
CHANGE, LIKE PUBLIC
INFRASTRUCTURE FOR BRIDGES AND
SUCH.
THAT I THINK ARE SORT OF IN THE
PUBLIC VIEW AT THE LEVEL JUST
BELOW THE PUBLIC SAFETY AND
HOMELESSNESS CRISIS THAT WE
CAN'T REALLY GET TO UNTIL WE
BUILD A BUDGET THE TACKLES IS
CHALLENGES.
I REALLY THINK FUNDAMENTALLY,
COMPARED TO A LOT OF OTHER
CITIES, PARTICULARLY ON THE
WEST COAST, SEATTLE IS VERY
WELL-POSITIONED FOR A RECOVERY
THAT WE CAN EXECUTE.
WE KNOW THINGS THAT WORK.
WE KNOW THE THINGS THAT WILL
MAKE PROGRESS ON THOSE ISSUES.
AND I JUST WANT TO MAKE SURE,
IF THERE IS SOME LEVEL OF
CONSOLIDATION ON THE
EXPENDITURE SIDE, THAT WE MAKE
SURE WE ARE ALSO TAKING THE
OPPORTUNITY TO PROTECT, EXPAND
AND DOUBLE DOWN ON INVESTMENTS
THAT ARE GOING TO MAKE PROGRESS
ON THE HOMELESSNESS CRISIS AND
RESTORE PUBLIC CONFIDENCE AND
IN TURN BOOST OUR REVENUES
GOING FORWARD.
TO ALLOW US TO GET BACK ON HER
FEET.
I WOULD WANT TO MAKE SURE WE
DON'T CRAFT A BUDGET THAT, IN A
SENSE EQUALLY DISTRIBUTES THE
POTENTIAL CONSOLIDATION OR THE
POTENTIAL PROGRAMMATIC PULLING
BACK TO BALANCE PRIORITIES.
IN A WAY THAT DOES NOT
EMPHASIZE INVESTMENTS AND
TACKLING THE HOMELESSNESS
CRISIS AND PUBLIC SAFETY CRISIS.
THOSE THINGS REALLY NEED TO BE
AT THE FOREFRONT OF HOW WE ARE
DESIGNING A STRATEGY AFTER THIS
CHALLENGES.
I WOULD JUST HOPE THAT WE COULD
PUT FORWARD A BOLD BUDGET AS A
ROADMAP TO TAKING CARE OF THOSE
CHALLENGES.
BECAUSE THE SOONER WE DO, THE
SOONER WE'RE GOING TO SEE
BIGGER INVESTMENT AND BIGGER
RECOVERY AND THE ABILITY TO
TAKE ON MORE OF THE THINGS THIS
COUNCIL AND CITY GOVERNMENT
WANTS TO MAKE PROGRESS ON.
BUT, I WOULD JUST HOPE THAT AT
THIS MOMENT, CLEARLY WHEN
PEOPLE ARE DEMANDING AND WHAT
THE MOMENT IS DEMANDING IS THAT
THOSE BE OUR PRIMARY FOCUS,
PUBLIC SAFETY AND HOMELESSNESS.
>> THANK YOU VERY MUCH.
>> I WAS GOING TO MAKE THIS THE
DISCUSSION OF THE SEATTLE
RESCUE PLAN UPDATE, BUT IT
RELATES TO SOMETHING THAT WAS
SAID YESTERDAY IN BRIEFING, I
WANT TO MAKE A QUICK POINT,
WHEN I WAS TALKING ABOUT
SEATTLE RESTORE YESTERDAY WHICH
IS ONE OF THE THINGS FUNDED BY
THE SEATTLE RESCUE PLAN, I
WANTED TO MAKE A CORRECTION
THAT THAT PROGRAM THAT I
PRAISED YESTERDAY DOES NOT HAVE
JUMPSTART FUNDS.
JUST INFORMATION FOR THE PUBLIC
AND MY COLLEAGUES.
THANK YOU.
>> I AM SORRY, ARE YOU ASKING A
QUESTION?
>> ALL RIGHT.
I DID HAVE A QUESTION ABOUT
SLIDE NUMBER NINE.
SLIDE NUMBER NINE HAS PROPERTY
TAXES GOING DOWN IN TERMS OF
OUR 2022 PROJECTIONS.
BUT ARE UP OVER 2021.
CAN YOU TALK A LITTLE BIT ABOUT
WHAT YOU ARE SEEING THERE?
WHY ARE PROPERTY TAXES GOING
DOWN IN 2022?
>> SO THAT RELATES TO THE
MEDICAL AND EMS LEVY I WAS
DESCRIBING DUE TO THE GROWTH
RATE OF RENTALS IN KING COUNTY
TOTAL AV VERSUS SEATTLE AV,
THAT THE RATE ACTUALLY DECLINED
FURTHER THAN THE CITY AV
INCREASED.
WHEN YOU MULTIPLY THOSE
TOGETHER WE ARE GETTING A
SMALLER NUMBER IN 2022 AND WE
DID PREVIOUSLY IN THE ADOPTED
BUDGET.
>> AV IS ASSESSED VALUE?
>> YES.
>> SO THEY ARE UP OVER 2021.
BUT DOWN COMPARED TO OUR
INITIAL PROJECTIONS?
>> YES.
EXACTLY.
>> I THINK EVERYONE WOULD ASSUME
PROPERTY TAXES ARE CONTINUING
TO GO UP.
BUT THEY ARE NOT UP COMPARED TO
THE PROJECTIONS WE HAD
INITIALLY CONSIDERED.
>> JUST TO MAKE SURE I GOT THIS
RIGHT, THEY ARE DOWN RELATIVE
TO 2021.
AND THEY ARE DOWN RELATIVE TO
2022 ADOPTED.
>> THEY ARE NOT UP OVER THE
2021.
>> CORRECT.
>> I THINK THAT HELPS CLARIFY.
>> IS PROJECTED.
IN 2022 WE'RE STILL COLLECTING
THE TAXES.
IT IS A PRETTY DONE DEAL WITH
THE PROPERTY TAX.
ONCE YOU KNOW THE RATE NAV IT'S
A MATTER OF WHETHER EVERYBODY
PAYS THEIR PROPERTY TAXES IN A
TIMELY WAY.
>> THAT MAKES SENSE.
>> ANY ADDITIONAL COMMENTS?
ALLIE, ANY ADDITIONAL
INFORMATION FOR THE FOURTH?
WE TALKED ABOUT A LOT OF
ANTICIPATION THERE.
>> WE ARE LOOKING FOR TO THE
CONVERSATION AND A LOT OF WORK
TO DO BETWEEN NOW AND THEN.
>> GREAT.
AGAIN, THANKS TO WILLIAM FOR
THE PRESENTATION.
WE WILL HAVE THE SPENDING IN
OUR NEXT COMMITTEE MEETING.
WE WILL HAVE A POSSIBLE OFFICE
OF HOUSING STAFFING LEGISLATION
THAT IS STILL IN THE MAYOR'S
OFFICE, TO BE DETERMINED.
AND, WE WILL HAVE THIS.
THE MUCH-ANTICIPATED PART TO OF
THE GENERAL FUND BALANCING
ANALYSIS.
THIS WILL BE AN UPDATE OF OUR
SIX YEAR FINANCIAL PLAN.
AGAIN, THAT MEETING IS GOING TO
BE ON MAY 4. ALL RIGHT.
HEARING NOTHING, WE DID IT
PRETTY MUCH ON TIME.
DIRECTOR NOLAN I THINK YOU ARE
WITH US.
WE APPRECIATE YOUR PRESENTATION.
THANKFUL FOR THE WORK YOU ALL
DID ON THIS COMMITTEE TO UPDATE
THAT TEMPLATE AS WELL.
20 YEARS IN THE MAKING.
WE DID IT TODAY.
THAT WILL HAPPEN NEXT TUESDAY.
I APPRECIATE ALL OF YOUR TIME.
IF YOU HAVE ANY QUESTIONS, I
WILL PUT THIS OUT THERE, I KNOW
FOLKS ON THE LINE HERE WOULD BE
HAPPY TO CONTINUE TO ANSWER
THOSE IN ANTICIPATION OF THE
FOURTH.
IF THERE ARE ADDITIONAL
QUESTIONS PLEASE LET MY OFFICE
AND DIRECTOR JULIE DINGLEY NO.
WE CAN COMPILE ANY ADDITIONAL
QUESTIONS YOU DIDN'T GET A
CHANCE TO ANSWER.
I APPRECIATE THE ROBUST
DISCUSSED IN.
HAVE A GREAT REST OF YOUR DAY.
WE WILL SEE YOU SOON.