.
>>> GOOD MORNING, EVERYONE.
TODAY IS AUGUST 17TH, 2022.
I'M TERESA MOSQUEDA CHAIR OF THE
FINANCE AND HOUSING COMMITTEE.
WILL THE CLERK PLEASE CALL THE
ROLL?
>> COUNCILMEMBER LISA HERBOLD.
>> HERE.
>> COUNCILMEMBER ALEX PEDERSEN.
>> PRESENT.
>> COUNCILMEMBER NELSON.
>> PRESENT.
>> COUNCILMEMBER ANDREW J.
LEWIS.
>> PRESENT.
>> MA CHAM CHAIR TERESA
MOSQUEDA.
>> PRESENT.
>> WONDERFUL, GOOD MORNING
THANKS AGAIN FOR JOINING US.
HAPPY TO HAVE ALL OF YOU HERE
TODAY.
WE HAVE A FULL AGENDA.
COLLEAGUES IN FRONT OF US TODAY
WE HAVE THE THREE BILLS RELATED
TO CANNABIS EQUITY FOR BRIEFING
DISCUSSION AND POSSIBLE VOTE.
I WANT TO PAUSE TO MAKE SURE WE
DON'T HAVE ANY BACKGROUND NOISE.
EVERYTHING GOING WELL ON THE
PROJECTION SEATTLE CHANNEL?
LOOKS LIKE WE HAVE A LITTLE BIT
OF BACKGROUND.
OKAY.
I'LL TRY IT AGAIN.
WE HAVE AN OUR AGENDA TODAY
THREE BILLS RELATED TO CANNABIS
EQUITY LEGISLATION FOR BRIEFING
AND POSSIBLE VOTE.
THANK YOU TO COLLEAGUES WHO
SUBMITTED THEIR AMENDMENTS AND
WORKED WITH CENTRAL STAFF TO
INCLUDE THOSE IN THE
PUBLICATION.
FOR TODAY'S MATERIAL AS I NOTED,
WE WILL HAVE AT LEAST ONE WALK
ON AMENDMENT THANKS TO
COUNCILMEMBER NELSON IN
PARTNERSHIP WITH OUR OFFICE, A
JOINT WALK ON AMENDMENT FOR YOUR
CONSIDERATION AS WELL.
WE HAVE THREE ITEMS RELATED TO
OUR BUDGETING AND FORECASTING.
AN ECONOMIC AND REVENUE FORECAST
AUGUST UPDATE.
THIS IS A PRESENTATION FROM LAST
MONDAY'S OFFICE OF ECONOMIC AND
REVENUE FORECAST PROJECTIONS
THAT WAS PRESENTED TO THE
FORECAST COUNCIL.
A GENERAL FUND FINANCE NL PLAN
UPDATE FROM CENTRAL STAFF AND
WE'LL HAVE A QUARTERLY SEATTLE
RESCUE PLAN SPENDING UPDATE, IF
WE HAVE TIME.
I WANT TO THANK IN ADVANCE
CITIES FROM THE CITY'S BUDGET
ECONOMIC, XHEK REVENUE AND OUR
OWN CENTRAL STAFF FOR THE
INCREDIBLE WORK ON THESE ITEMS.
I WILL NOTE THERE IS AN
ADDITIONAL TWO MATERIALS LINKED
UNDER MEETING DETAILS ON TODAY'S
FINANCE AND HOUSING COMMITTEE
MATERIALS.
THESE ARE RELATED TO AGENDA ITEM
NUMBER FIVE AND UNFORTUNATELY
WE'RE INADVERT TENTLY LEFT OFF
TODAY'S MATERIAL SO YOU CAN FIND
THE LINK TO BOTH CENTRAL STAFF
MEMO AND A POWERPOINT
PRESENTATION FOR AGENDA ITEM
NUMBER FIVE LINKED UNDER MEETING
DETAILS AND FOR COLLEAGUES YOU
ALSO RECEIVED AN EMAIL FROM OUR
OFFICE TO LINK YOU DIRECTLY TO
THOSE MATERIALS.
SO IT'S A PACKED AGENDA AND WE
DID ASK IF FOLKS COULD HOLD THE
TIME UNTIL 12:30 TODAY.
IF THERE'S NO OBJECTION, TODAY'S
AGENDA WILL BE ADOPTED.
>> NO OBJECTION, TODAY'S AGENDA
IS ADOPTED.
I WANT TO THANK YOU AGAIN FOR
CONTINUING TO PARTICIPATE AS
MUCH AS POSSIBLE REMOTELY AND
MEMBERS OF THE PUBLIC FOR
CONTINUING TO WEAR A MASK AND
ALL THOSE CONTINUE TO CALLING IN
VIA REMOTE PUBLIC COMMENT, WE
ENCOURAGE PEOPLE TO CALL IN
REMOTELY TO LIMIT THE NUMBER OF
PEOPLE IN THE CHAMBERS AS WE ARE
ALSO ASKING ALL THE PRESENTERS
FROM CENTRAL STAFF, THE MAYOR'S
OFFICE AND COMMUNITY PARTNERS
NORMALLY AT THE TABLE WITH US TO
PARTICIPATE REMOTELY.
SO THANK YOU FOR CONTINUING TO
DO THAT AS WE SEEK TO BRING DOWN
THESE COVID RATES FURTHER.
MADAME CLERK, WILL YOU TEE UP
THE PUBLIC COMMENT AND WE'LL
HEAD RIGHT IN.
IF THE VIDEO IS NOT AVAILABLE
I'LL READ THE SCRIPT.
OKAY.
COLLEAGUES WE DO HAVE FOLKS WHO
SIGNED UP REMOTELY AND IN
CHAMBERS.
WE'LL HAVE THE FOLKS WHO SIGNED
UP REMOTELY TO PRESENT FIRST.
THERE'S FIVE PEOPLE PRESEN TO
PRESENT REMOTELY AND A HANDFUL
OF PEOPLE IN THE AUDIENCE AS WE.
ABOUT 8 INDIVIDUALS WHO SIGNED
UP TO PROVIDE PUBLIC TESTIMONY.
AS A REMINDER, YOU HAVE ONE AND
A HALF MINUTES TO PROVIDE YOUR
PUBLIC COMMENT.
THAT WILL ALLOW FOR US TO GET
THROUGH THE FULL PUBLIC COMMENT
AND GET TO THE ITEMS ON THE
AGENDA TODAY.
YOU'LL HEAR A CHIME AT
10 SECONDS WHEN WE HAVE
10 SECONDS REMAINING.
WRAP UP YOUR COMMENTS AND
ADDITIONAL COMMENTS ARE WELCOME
TO BE SENT TO COUNCIL AT
SEATTLE.GOV.
SO LET'S GO AHEAD AND
GET STARTED WITH THE THREE FOLKS
TO SIGN UP FOR PUBLIC COMMENT
ONLINE.
GOOD MORNING AND STAR
6 TO UNMUTE YOURSELF.
>> YES, CAN YOU HEAR ME?
>> YES, GO AHEAD.
>> OKAY THANK YOU.
GOOD MORNING CHAIR TERESA
MOSQUEDA AND COMMUNITY MEMBERS,
I'M ADAN THE EXECUTIVE DIRECTOR
OF THE CRAFT CAN BUS COALITION
AND ASSOCIATION OF FAMILY OWNED
RETAILERS INCLUDING OVER HALF OF
RETAILERS IN SEATTLE.
I WOULD LIKE TO PROVIDE COMMENTS
REGARDING CONTINUED CONCERNS WE
HAVE ON PROPOSED AMENDMENT TO
THE CANNABIS ASSESSMENT.
IT CONTINUES TO BE VERY SPECIFIC
WHEN DIRECTING THE EXECUTIVE
TOWARDS SELECTING AN
ORGANIZATION WITH CLOSE TIES TO
FCW AND STAKE HOLDER IN THE
PROCESS.
THAT ORGANIZATION BEING IN
WASHINGTON AND THE CONNECTION
BEING THE PRESIDENT OF THE UFCW
IS ALSO THE PRESIDENT OF
WASHINGTON.
WE ASKED IF THERE'S CREDIBLE
NONPROFIT ENTITIES AND SO FAR NO
ONE HAS BEEN ABLE TO OFFER UP
ANY.
WE APPRECIATE LANGUAGE PUTTING A
COLLEGE AT THE HELM BUT THEY
HAVE TO PARTNER WITH AN
ORGANIZATION LIKE WE TRAIN
WASHINGTON.
THIS IS A SIGNIFICANT ENOUGH
ISSUE THAT IT COULD POTENTIALLY
MAKE IT DIFFICULT, IF NOT
IMPOSSIBLE FOR THE CCC AND
MEMBERS TO PARTICIPATE IN THIS
GOING FORWARD.
THE CCP SUPPORTS A FAIR AND
NEUTRAL ASSESSMENT TO IDENTIFY
REAL SOCIAL EQUITY NEEDS BY
PUTTING A STAKE HOLDER INTO A
CONTROLLING ROLE.
WE HOPE YOU WILL AGREE THAT
GIVING ONE STAKE HOLDER MORE
CONTROL OF THE PROCESS OR
GREATER REPRESENTATION WITHIN IT
WOULD BE INAPPRPRIATE.
THANK YOU FOR YOUR TIME.
>>> THANK YOU.
CODY FUNDERBUNK FOLLOWED BY
ZION, GOOD MORNING CODY.
>>> HI GOOD MORNING, EVERYONE MY
NAME IS CODY THUNDERBIRD AND I
WORK IN THE CENTRAL DISTRICT AS
A BARTENDER AND MEDICAL CANNABIS
CONSULTANT SINCE 2018.
I'M CALLING TODAY IN SUPPORT OF
THE PROPOSED AMENDMENTS.
AS AN INDUSTRY WORKER I CAN'T
UNDERSTATE THE IMPORTANCE OF
HAVING HIGH STANDARDS FOR
CONDUCTING CANNABIS NEEDS
ASSESSMENT.
THE BENEFIT OF LIMITING IF THEY
ARE CONDUCTED BY A NONPROFIT
ENTITY WITH EXPERTISE IN
TRAINING AND DEVELOPMENT, WE CAN
BETTER ASSURE ACCURACY AND
IMPARTIALITY WHICH WILL BENEFIT
THE OVERALL INTENT OF THE
PROPOSAL WE HAVE HERE.
IN ADDITION TO THAT, I FEEL THE
ADVISORY COMMITTEE WOULD BE
BETTER SERVED BY THE PRESENCE OF
REPRESENTATIVES OF LABOR WHO
STAND TO LEVERAGE THE INTEREST
OF CANNABIS WORKERS.
ALSO CALLING IN SUPPORT OF THE
PROPOSED AMENDMENTS SECTION
THREE, IT'S CRUCIAL THAT
EX-SPONGEMENT INVOLVES A
COLLABORATIVE EFFORT WITH LIVED
EXPERIENCE IN THE CRIMINAL
JUSTICE SYSTEM.
HOWEVER SUTING, THESE NUANCES DO
HAVE DRAMATIC EFFECT ON THE
INTENT OF THE PROPOSED AMENDMENT
NAMING AND INCLUDING LABOR
RIGHTS, COMMUNITIES NEGATIVELY
AFFECTED BY THE WAR ON DRUGS AND
THOSE WITH LIVED EXPERIENCE IN
THE CRIMINAL JUSTICE SYSTEM
ACTIVELY DEFINES INTENTIONAL
ELEMENTS OF INCLUSION AND
JUSTICE IN THIS PROPOSAL.
THANK YOU.
.
>> THANK YOU, VERY MUCH.
AND THEN NEXT PERSON IS ZION
GRAY EL FOLLOWED BY JAMES ADAM
AND PAULA.
GOOD MORNING ZION.
>>> CAN YOU HEAR ME?
>> YES.
>> ALL RIGHT.
MY NAME IS ZION GRAY EEL AND I
WANT TO SAY GOOD MORNING FIRST
OFF TO CHAIR TERESA MOSQUEDA AND
COMMITTEE MEMBERS.
I HAVE SPOKEN AT THESE MEETINGS
A COUPLE TIMES IN THE PAST.
AGAIN, I'M HERE TO SUPPORT THE
LEGISLATION ALSO VOICE MY
SUPPORT FOR TERESA MOSQUEDA'S
PROPOSED AMENDMENT.
I FULLY SUPPORT CODY'S STATEMENT
THAT WAS JUST MADE EARLIER.
ESPECIALLY IN REGARDS TO HAVING
THE SPECIFIC GROUPS INVOLVED IN
THE WORKS.
I ALSO WOULD LIKE TO ACKNOWLEDGE
THE FREEDOM PROJECT FOR BEING ON
THE FOREFRONT OF THIS
EXSPONGSMENT INITIATIVE.
WE TRAIN WASHINGTON IS AN
ABSOLUTELY AMAZING ORGANIZATION
AND WOULD BE IDEAL REGARDLESS OF
THEIR ASSOCIATION THEIR
CAPABILITIES AND WHAT IT IS THEY
CAN PROVIDE TO THE VISION IS
PIVOTAL, IN MY OPINION.
I AGREE THAT IT'S VERY IMPORTANT
TO APPOINT WORKERS, INDUSTRY
MEMBERS AND KEY COMMUNITY
MEMBERS TO SUPPORT THE CANNABIS
NEEDS ASSESSMENT.
I BELIEVE MS. NELSON'S AMENDMENT
PROPOSAL WAS IN MY OPINION TOO
OWNER INVESTOR SPECIFIC IN
REGARDS TO ITS COMPOSITION AND I
PERSONALLY FEEL THERE ARE OTHER
GROUPS THAT ARE INVOLVED IN THE
CANNABIS COMMUNITY THAT WILL
LOSE THE OPPORTUNITY TO BE
CONSIDERED UNDER MS. NELSON
SPECIFIC PROPOSAL.
AGAIN, I REALLY LIKE TO BE ON
THIS ADVISORY COMMITTEE THAT
WILL HELP DO THE RESEARCH AND
PROVIDE ASSESSMENT AND ANALYSIS
ON THIS ORDINANCE.
AND I JUST WANT TO END IT BY
SAYING THE LEGISLATION IS OFF TO
A GOOD START.
YOU HEARD ME ADVOCATING FOR
CANNABIS AND I'M GOING TO KEEP
DOING IT.
WE HAVE A LOT OF WORK AHEAD OF
US AND CONFIDENT WE CAN GET IT
DONE.
>> THANK YOU SO MUCH.
>> JAMES, FOLLOWED BY PAULINA
AND I WANT TO NOTE GABRIELLE IS
LISTED TO SPEAK BUT NOT PRESENT.
JAMES, GOUM STAR SIX TO UNMUTE.
>> GOOD MORNING, THANK YOU SO
MUCH FOR LETTING ME TALK HERE
TODAY.
MY NAME IS JAMES ADAMS AND I'M A
LEAD BARTENDER AT MR. GREEN'S
CANNABIS IN NORTH SEATTLE AND A
UNION STEWARD FOR UFCW 3000 AND
I STRONGLY SUPPORT THE WORKERS
PROTECTION PIECE.
WHEN MR. GREEN'S BROKE OFF FROM
ITS PARENT COMPANY, A FEW OF US
EMPLOYEES WERE FIRED, MAJORITY
OF US RETAINED BY THE COMPANY
AND IT WAS EXTREMELY STRESSFUL.
WE ALL FELT LIKE WE WERE ON THE
CHOPPING BLOCK AND WE WERE VERY
REPLACEABLE AND TREATED AS SUCH.
WE NEED TO PROTECT CANNABIS
WORKERS RIGHTS, BUSINESSES ARE
BOUGHT AND SOLD REGULARLY AND
THE WORKERS HAVE LITTLE TO NO
RIGHTS WHEN THAT HAPPENS.
AND WE ARE REPLACED.
THIS ACT WOULD PROTECT WORKERS
AND WHEN A BUSINESS IS SOLD AND
MAKE IT SO THAT THE NEW OWNER
CAN'T FIRE AND REPLACE THE
WORKERS THAT BUILT THE COMPANY
BEFOREHAND.
CANNABIS IS STILL FEDERALLY
ILLEGAL AND WORKERS FT.
INDUSTRY
HAVE LITTLE RIGHTS AND EXPLOITED
ON A DAILY BASIS AND THESE
AMENDMENTS WOULD HAVE GREAT
EFFECT ON THE WORKERS IN THE
CITY OF SEATTLE.
>> THANK YOU VERY MUCH FOR
DIALLING IN.
LAST PERSON WHO IS PRESENT
ONLINE IS PAULA AND GABRIELLE
YOU'RE STILL ELIGIBLE TO DIAL
IN.
GOOD MORNING.
>>> GOOD MORNING, MY NAME IS
PAULA AND I'M THE PRESIDENT AND
CEO OF GLOBAL STRATEGIES.
WE SUPPORT 714 AFRICAN AMERICANS
LEFT OUT OF I--502 AND WE PASSED
CANNABIS BILL SENATE BILL 5928
AND DRAFTERS OF HOUSE BILL 1270
CREATING THE SOCIAL EQUITY
PROGRAM.
WE ARE THE LARGEST MOST UNIFIED
VOICE REPRESENTING AFRICAN
AMERICANS IN THE BIPOC COMMUNITY
OF CANNABIS AND WE DO NOT
SUPPORT CERTAIN PROVISIONS OF
THE THIS AMEND.
WE SUPPORT WORKERS PROTECTION
AND COMMEND TERESA MOSQUEDA IN
THE CITY OF SEATTLE FOR HAVING
THE STRONGEST WORKER PROTECTION
IN THE COUNTRY.
WE ARE IN SUPPORT OF THE
AMENDMENT PUT FORTH BY SARA
NELSON BECAUSE WE UNDERSTAND
THIS ISSUE HAVING SEATED HOUSE
BILL 6393.
AND TALKING TO MEMBERS OF THE
COMMUNITY WE CANNOT BUILD THIS
PROGRAM ON THE BACKS OF SOCIAL
EQUITY APPLICANTS.
WE THINK THERE'S A BETTER WAY TO
DO THIS.
IF WE MOVE FORWARD WITH A NEEDS
ASSESSMENT, WE HAVE WORK ON
STATE BANKING AND SOCIAL EQUITY
ISSUES WITH UW, WSU AND THE
STATE UNIVERSITIES.
THEY ARE WELL QUALIFIED TO DO
THIS WORK.
THEY ARE NONPARTISAN AND WILL
BRING THE LENS OF EQUITY TO THE
WORK.
HAVING A PROVISION IN AN
AMENDMENT FUNDED BY TAXPAYER
DOLLARS THAT GIVES MONEY TOWARDS
A PARTICULAR ENTITY IS NIGHT AN
EQUITY OR A QUALITY.
THANK YOU.
>> THANK YOU AND I STILL DON'T
SEE GABRIELLE LISTED AS PRESENT
SO WE'RE MOVING ON TO FOLKS IN
THE MORNING.
MARDI GRASGARET.
>> GOOD MORNING, I'M FROM
SEATTLE AND MY CONCERN HERE I
CIRCLED IT, IT'S CALLED AN
ORDINANCE RELATING TO EMPLOYMENT
IN SEATTLE.
THAT'S DEEP.
BECAUSE WHEN YOU TALK ABOUT THE
INDIGENOUS POPULATION, BLACK
INDIGENOUS BLACK PEOPLE,
HOMELESS OUT ON THE STREET IN
THE DRONE MAN OR WHATEVER HIS
NAME IS THE HOMELESS AUTHORITY
MAN IS COMING UP IN HERE ON
TODAY.
THIS STUFF IS NOT A JOKE.
IT NEVER HAS BEEN FUNNY.
AND I DON'T KNOW WHAT THIS MEANS
WHEN YOU'RE RELATING TO
EMPLOYMENT WHEN A LOT OF PEOPLE
AREN'T EMPLOYED.
DELIBERATE ACTIONS TO KEEP THEM
UNEMPLOYED.
I KNOW OF FOLKS THAT LOST THEIR
HOME HERE IN SEATTLE FOR NO
REASON AT ALL.
THEY WERE JUST INDIGENOUS BLACK
PEOPLE AND SOMEBODY CAME OUT THE
WOODWORKS TO ASSAULT THEM AND
TAKE EVERYTHING FROM THEM AND
MAKE THEM CRIPPLED.
AND SO I WANT THE PAYMENT RIGHT
NOW.
I'M NOT WAITING FOR CONGRESS TO
WAIT FOR NOTHING.
NO.
WE JUST GONE DO THAT BECAUSE WE
ARE TRUE TO THAT.
THAT'S WHAT WE'RE GOING TO DO.
WE'RE GOING TO DEMAND WHAT WE
NEED TO MAKE OUR PEOPLE SURVIVE
IN THIS COUNTRY.
RIGHT NOW.
NOT TOMORROW BUT NOW.
>> THANK YOU.
>> ALL RIGHT GUYS WE'RE GOING TO
ASK FOLKS TO HOLD THEIR
APPLAUSE.
YOU CAN DO THIS, IF YOU AGREE.
BUT PLEASE.
>> NO CLAPPING?
>> YEAH, EXACTLY WE GOT TO KEEP
GOING.
>> THE SISTER SAID SOMETHING
POWERFUL.
I GET MOVED WHEN I HEAR
REPARATIONS AND THAT'S THE
ACCOUNTABILITY.
THAT'S WHAT WE NEED IN THIS
COUNTRY IS REPARATIONS RIGHT
GUYS.
>> YOU CAN GO AHEAD AND START
GOOD MORNING, MR. PETER MANNING.
>> MY NAME IS PETER MANNING I'M
WITH BLACK EXCELLENCE CANNABIS.
WE ARE OPPOSED TO CERTAIN THINGS
WITH UNIONS IN THIS UNCERTAINTY
HOW THAT IS ALL PLAYING OUT, THE
NONPROFIT ORGANIZATIONS WE ARE
NOT FEELING THAT.
WE ACTUALLY ARE LEANING TOWARDS
WHAT COUNCILMEMBER NELSON IS
TALKING ABOUT.
THIS AMENDMENT IS WHERE IT
SPECIFIES INDEPENDENT ACADEMIC
INSTITUTIONS.
WE'RE COMPLETELY DONE WITH THIS
BEING IN SCHOOLS.
IF EVERYONE ELSE IS INVOLVED IN
IT IT COULD BE ULTERIOR MOTIVE
GAINING INFLUENCE OVER AN
INDUSTRY THAT IS KING COUNTY
VOID OF BLACK AND BROWN.
WE DON'T NEED ANYTHING THAT
MIGHT IMPASADENA OR PREVENT US
FROM GETTING SOMEWHERE IN
CANNABIS.
WE'RE NOT EVEN THERE YET SO
BLACK EXCELLENCE CANNABIS IS IN
SUPPORT OF THE COUNCILMEMBER
NELSON IS PUTTING FORWARD.
THANK YOU.
>>> THANK YOU SO MUCH.
THE NEXT PERSON IS
CIRCUMSTANCESICHANI PERKINS
FOLLOWED BY ALEX ZIMMERMAN, GOOD
MORNING AND PLEASE CORRECT ME ON
THE PRONUNCIATION.
>> EXCUSE ME, GOOD MORNING.
MY NAME IS SACANI PERKINS WITH
THE CLI COMMUNITY LEADERSHIP
INSTITUTE AS WELL AS PLC, THE
POLITICAL LEADERSHIP COUNCIL ALL
UNDER PUGET SOUND SAGE.
MY TWIN BROTHER AND I RECENTLY
OPENED UP THE GREEN THUMB
COLLECTIVE WHICH IS THERAPEUTIC
HERBAL UNITED MEDICINAL BRANCH
IN 2011.
WE RAN TILL 2013.
WE WERE TARGETED AND SENT A
LETTER STATING THE REASON WE
WERE TOLD TO SHUT DOWN WAS DUE
TO A PRESCHOOL LOCATED IN THE
BASEMENT OF A CHURCH IN WEST
SEATTLE.
SO I FEEL THAT WE HAVE BEEN
EXPLOITED AND I FEEL I NEED TO
GET THE INFORMATION OUT ALTHOUGH
THEY ALREADY HAVE BEEN
ADVOCATING FOR THE AFRICAN
AMERICANS IN THE BIPOC COMMUNITY
AFFECTED BY THIS.
I THOUGHT IT WAS IMPERATVE THE
MY VOICE TO BE HEARD.
SO THAT'S ALL.
>> THANK YOU FOR PRESENTING
TODAY.
NICE TO MEET YOU.
ALL RIGHT, I SEE SOME HANDS AND
I KNOW PEOPLE CAN SEE THOSE
ONLINE TOO.
SO SE CI PERKINS.
EXCUSE ME, THERE WAS TWO AND
THEN ALEX ZIMMERMAN.
>> GOOD MORNING, THAT'S MY
BROTHER.
MY NAME IS SECIAH PERKINS,
FORMER OWNER AND COFOUNDER OF
THE GREEN THUMB COLLECTIVE.
LIKE HE SAID, WE OPENED IN 2011
AND FORCED TO CLOSE IN 2013.
BASED ON TECHNICALITIES AND
BEING RESTRICTED TO BOUNDARIES
AND WHATNOT, I BELIEVE WE WERE
TARGETED BASED ON OTHER
COLLECTIVES IN THE INDUSTRY
LOCATED WITHIN THE SAME
VICINITY.
STILL BEING ABLE TO OPERATE.
AS INDIVIDUALS WHO ARE
CONSIDERED BLACK OR ADOS, SHARE
SIMILAR EXPERIENCES REGARDING
THE SYSTEMIC RACISM.
I FEEL THERE IS NO NEED FOR US
TO BE HEARD AND NOT SILENCED.
OUR VOICES ARE VERY IMPORTANT
ESPECIALLY WHEN IT DEALS WITH
OUR COMMUNITY.
NOBODY SHOULD BE ABLE TO POLICE
WHAT WE DO AND STAND FOR BASED
ON THE HISTORY OF WHAT AMERICA
HAS SHOWN PEOPLE OF MY
BACKGROUND.
THAT'S IT.
>> YOU'RE WELCOME TO CONCLUDE.
YOU CAN KEEP GOING.
>> THANK YOU.
>> OKAY THANK YOU SO MUCH.
>>> THE NEXT PERSON IS ALEX
ZIMMERMAN.
AND MATT EDGER TON FOLLOWED BY
MIKE ASICIA.
GOOD MORNING.
YOUR TIME IS RUNNING.
.
>> MY LOVELY NAZI MOB, WHO
SPEAKS TO US FROM THE HEAVEN.
MY NAME IS ALEX ZIMMERMAN AND I
SPEAK OF AGENDA NUMBER FOUR
ABOUT LOCAL FORECAST.
THANK YOU COUNCIL TERESA
MOSQUEDA FOR A GOOD JOB YOU DID
IN YOUR COUNCIL FOR THE LAST
TIME.
IT'S AN EXAMPLE FALLEN VERY
GOOD.
IT MADE HOMELESS MOST DISAPPEAR
IN SEATTLE.
VERY GOOD JOB.
PRICE FOR APARTMENT FOR EXAMPLE,
FALLEN BY 20%.
SO RIGHT NOW BLACK AND POOR CAN
COME BACK.
IT'S VERY IMPORTANT TOO IF YOU
HAVE 25,000 APARTMENT EMPTIES SO
EVERYBODY CAN RENT THIS
APARTMENT NOW.
IT'S VERY BIG PROGRESS WHAT WE
HAVE THIS.
VERY GOOD PROGRESS AND NICE FOR
THE LAST FEW MONTHS SO PEOPLE
DIDN'T STOP AND USE GUNS IN
SEATTLE.
IT'S VERY IMPORTANT.
WE HAVE NOT ENOUGH POLICEMEN.
LESS POLICEMEN, MORE FREEDOM, I
UNDERSTAND THIS ABSOLUTELY.
SO WHAT IS NEXT?
WHAT DO WE HAVE NEXT?
FOOD PRICE.
FOOD PRICES FALLEN DOWN
DRAMATICALLY BECAUSE INFLATION
RIGHT NOW IS ZERO.
EXACTLY WHAT YOU'RE TALKING TO
PEOPLE RIGHT NOW SO RIGHT NOW
STAND UP AMERICA, WE'LL HAVE A
VERY GOOD LIFE.
>> THANK YOU.
>> THE NEXT PERSON IS DREW, GOOD
MORNING.
>> YES, BRIONNE CRABRE.
>> SO SORRY.
THAT'S A B.
GOT YOU.
>> GOOD MORNING, MY NAME IS BR
IONNE KA BRAY AND I WAS THE
OWNER OF THE GAME COLLECTIVE AND
FIRST AFRICAN AMERICAN MAN TO
OPEN UP A MEDICAL MARIJUANA
COLLECTIVE HERE IN SEATTLE.
AND THEN OF COURSE BECAUSE OF
THE COLOR OF MY SKIN I WAS
VICTIMIZED BY THE SYSTEM.
MY STORE WAS TAKEN AWAY.
IN FACT, THE EXACT SAME PLACE AS
WHERE MY STORE WAS LOCATED THERE
ARE MY PEOPLE RUNNING MARIJUANA
STORES OUT OF IT.
IT WAS A CRYING SHAME WHAT YOU
GUYS DID TO US AS AFRICAN
AMERICANS IN THIS STATE OF
WASHINGTON AGAIN SUPPOSED TO BE
A PROGRESSIVE STATE BUT THE
ACTIONS SAY OTHERWISE.
IF IT WASN'T FOR THE HARD WORK
OF BLACK EXCELLENCE IN CANNABIS
WE WOULDN'T BE HERE TODAY
TALKING.
YOU GUYS WOULD HAVE JUST WALKED
AWAY AND LEFT US WITH SNOG.
THE HARD WORK THAT WE HAD PUT
INTO OUR BUSINESSES, THE AMOUNT
OF MONEY AND TIME THAT WE PUT
INTO OUR BUSINESSES TO MAKE THEM
WHAT THEY WERE AT THAT TIME SEEM
TO NOT MAKE A DIFFERENCE.
AND WE WERE AGAIN LOCKED OUT OF
AN INDUSTRY THAT SEEMS TO BE
REPEATING ITSELF THROUGHOUT
HISTORY WHERE LUCRATIVE
INDUSTRIES THAT OPEN UP AREN'T
OPEN TO PEOPLE OF COLOR SO WE
WANT TO MAKE SURE THAT THE CITY
OF SEATTLE UNDERSTANDS THE
IMPORTANCE OF GIVING US BACK OUR
STORES.
THANK YOU.
>> THANK YOU.
LOTS OF HANDS.
MATT EDGER TON FOLLOWED BY MIKE
ACIA AND THE LAST PERSON SIGNED
UP AMIRA ZETA.
IF THERE'S ANYBODY ELSE WHO
WOULD LIKE TO SPEAK, YOU STUL
HAVE TIME TO SIGN UP.
>>> GOOD MORNING, SO I'M MATT
FROM UFC CANNABIS DIVISION AND
JUST WANTED TO SAY YEARS AGO WE
STARTED A PROCESS WITH A LOT OF
STAKE HOLDERS, PEOPLE FROM OVER
42 ORGANIZATIONS SURVEYED A TON
OF CANNABIS ABOUT PUBLIC POLICY
CHANGES DONE AT A LOCAL LEVEL
BECAUSE WE KNOW THE STATES NOT
MOVING AND WE NEED TO MOVE STUFF
LOCALLY.
WE PROPOSED A LOT OF STUFF TO
THE CITY.
A LOT OF STUFF THAT'S NOT HERE.
LIKE FUNDED TRAINING AND SOCIAL
EQUITY FUNDS BUT THIS IS LIKE A
GOOD START AND I AM VERY GLAD
AND APPRECIATE THE MAYOR'S
OFFICE AND COUNCIL.
I DO FOR LIKE GETTING SOME
FOUNDATION GOING, I WANT TO
ADDRESS THIS NEEDS ASSESSMENT
STUFF.
WE TREAT WASHINGTON AS AN
INTERMETER.
WE WANT WORKER VOICES AND NEEDS
TO BE REALLY PART OF THAT
ASSESSMENT AND THAT'S RUNNING
SURVEYS AND FOCUS GROUPS,
ACTUALLY A FUNCTION AS OPPOSED
TO THE PUBLISHING OF THIS.
THIS IS GOING TO BE A
DELIVERABLE BACK TO THE CITY
THAT NEEDS TO BE REVIEWED.
AND THE RESULTS ARE NOT GOING TO
BE -- WHEN YOU TAKE WORKER NEEDS
EMPLOYER NEEDS THEY'RE DIFFERENT
RESULTS IN A SURVEY BUT WHERE
THEY ALIGN, THAT IS WHERE THERE
COULD BE FOCUS ON THIS AND THIS
IS SOMETHING I'M OUT OF TIME SO
THANKS.
>> THANK YOU VERY MUCH.
MIKE ACIA FOLLOWED BY AMIRA GOOD
MORNING.
>>> GOOD MORNING, COUNCILMEMBER
TERESA MOSQUEDA AND GOOD MORNING
COUNCILMEMBERS AND THE PUBLIC.
MY NAME IS MIKE ACIA WITH MOC
COLLECTIVE.
WE WERE THE TIRS DOWNTOWN
SEATTLE COLLECT TIFF IN
2010-2011.
THERE SHOULD BE NO QUESTION OF
EMERALD CITY COLLECTIVE AND
BLACK CANNABIS IN FULL SUPPORT
OF SOCIAL EQUITY IN CANNABIS, OF
COURSE WE ARE.
WE HAVE SUPPORT FROM THE MAYOR
AND CITY COUNCIL REGARDING
CANNABIS SOCIAL EQUITY.
WE ARE IN FULL SUPPORT OF RIGHTS
AND PROTECTIONS FOR EMPLOYEES.
WE STAND HERE THIS MORNING IN
SUPPORT OF SARA NELSON'S
AMENDMENT REGARDING THE
INDEPENDENT ACADEMIC INSTITUTION
TO HELP WITH THE WORKER TRAINING
AND PROTECTION.
WE ARE NOT HERE TO FIGHT.
WE JUST ARE HAVING CONCERNS WHEN
IT COMES TO UNION BEING ATTACHED
TO SOCIAL EQUITY.
THE RECENT COMMENTS FROM
NATIONAL MEDIA REGARDING
APPLICANTS BEING DRUG
TRAFFICKERS AND SELLING TO KIDS
IS RACIST.
THIS IS AN EXAMPLE OF WHITE
SUPREMACY.
WE NEVER HAD ANY STATE OR
VIOLATIONS AND NEVER SOLD TO
KIDS.
WE STOPPED ALLOWING 21 UNDER TO
BE MEMBERS OF EMERALD CITY
COLLECTIVE.
WE BLACK AND BROWN PIONEERS
HELPED CREATE A THRIVING
CANNABIS WE SEE TODAY.
WE ARE SONS, FATHERS, BUSINESS
MEN AND WOMEN AND AMERICAN
CITIZENS, NOT DRUG
TRAFFICKERINGS.
WE ARE CANNABIS PIONEERS WANTING
OUR BUSINESS BACK TO START
RECOVERY AND INCLUDING NEW
BUSINESS OWNERS BLACK AND BROWN.
.
>> IF YOU HAVE THE REST OF YOUR
SENTENCE TO FINISH YOU'RE
WELCOME TO.
THAT'S FINE.
>> I WAS PRETTY MUCH DONE.
BUT WHAT I WANTED TO SAY AS YOU
CAN SEE HERE THIS MORNING, WE
HAVE A HANDFUL OF FORMER
PIONEERS HERE THAT WERE BLACK
AND THERE'S MANY MORE OUT THERE
THAT BLACK EXCELLENCE IN
CANNABIS EMERALD CITY COLLECTIVE
IS BRINGING TO THE FOREFRONT.
WE ARE THE PIONEERS AND WE WANT
TO BE HEARD AND WE FEEL LIKE AS
IF THE CITY HAS DROWNED OUT THE
PIONEERS.
WE APPRECIATE EVERYTHING THAT'S
GOING FORWARD BUT WE WANT TO
MAKE SURE THAT PEOPLE KNOW THAT
THERE WERE BLACKS THAT WERE
THRIVING AND HAD THE MODEL THAT
YOU SEE TODAY.
THANK YOU.
THANK YOU VERY MUCH.%
>>> AND GOOD MORNING WELCOME
THANK YOU.
>> HELLO.
MY NAME IS AMARA ZIANA AND I
WORK AT UFCW 3,000 IN THE
CANNABIS DIVISION.
I JUST WANT TO ADDRESS THIS FEAR
MONGERING I'VE BEEN HEARING
ABOUT UFCW.
WE ARE A UNION.
WHAT UNIONS DO IS MAKE SURE THAT
BUSINESSES THRIVE FOR THE
WORKERS AND FOR THE OWNERS.
AND MAKE SURE THAT WORKING
CONDITIONS WORK WELL AND ONE
THING I KEEP NOT HEARING FROM
MOST OF THESE PEOPLE IS YES, WE
NEED EQUITY FOR OWNERSHIP AND
EQUITY FOR MARGINALIZED
COMMUNITIES BUT WE NEED EQUITY
IN THE WORKPLACE TOO.
A LOT OF THE PEOPLE THAT WORK IN
THESE CANNABIS STORES ARE BLACK
AND BROWN PEOPLE AND
MARGINALIZED COMMUNITIES AND THE
REASON I SUPPORT COUNCILMEMBER
TERESA MOSQUEDA'S ASSESSMENT IS
BECAUSE A LOT OF TIMES WORKERS
VOICES ARE LEFT OUT.
AND YOU CAN'T HAVE A THRIVING
COMPANY IF YOU HAVE HIGH TURN
OVERAND WORKERS ARE NOT KNOWING
WHAT THEY'RE DOING MAKING BAD
SALES OR BAD PRODUCTS.
SO I REALLY THINK THAT WOER NOT
SCARY, I WOULD LOVE TO COME AND
HAVE YOU GUYS TALK TO US AND WE
CAN WORK TOGETHER AND TALK ABOUT
WHAT YOUR CONCERNS ARE OVER
HAVING A NONPROFIT THAT IS
EXPERIENCED.
THIS IS OUR EXPERTISE AND WHAT
THEY DO.
AND DO IT SUCCESSFULLY.
SO I THINK WE'RE NOT SOME BIG
SCARY PERSON.
WE'RE ALSO PEOPLE OF COLOR.
MY BROTHER WAS ARRESTED FOR
MARIJUANA CHARGES IN THE EARLY
2000'S.
ALL OF US THIS STUFF IS
IMPORTANT BUT WE CAN'T FORGET
THE VOICE OF THE WORKERS.
THANKS.
.
>> THANK YOU ALL SO VERY MUCH.
REALLY APPRECIATE THE PUBLIC
COMMENT TODAY AND I'M HEARING A
LOT OF COMMON GROUND AND BEFORE
WE CLOSE REPUBLICAN LUCK
COMMENT, I ALSO WANT TO ECHO AND
UNDERSCORE THE COMMENTS MADE
TODAY AND YESTERDAY DURING
PUBLIC COMMENT TO FULLY CONDEMN
THE RACIST COMMENTS ABOUT BLACK
AND BROWN OWNER SHOPS AS WELL.
ABSOLUTELY UNACCEPTABLE AND I
HOPE OUR CONVERSATION IN SEATTLE
THE VARIOUS INDIVIDUALS WHO COME
TO PROVIDE PUBLIC TESTIMONY AND
THE HISTORY JUST HERE IN OUR
PACIFIC NORTHWEST REGION HELPS
TO CORRECT THAT NARRATIVE AND
PUSH BACK AGAINST THOSE RACIST
ATTACKS SO THANK YOU FOR
CONTINUING TO BRING THAT UP.
WITH THAT, WE STILL DO NOT HAVE
GABRIELLE WITH US SO WE'RE GOING
TO CLOSE OUT PUBLIC COMMENT
TODAY.
AND MOVE ON IN TO ITEMS OF
BUSINESS.
MADAME CLERK CAN YOU PLEASE READ
ITEMS 1, 2, 3 INTO THE RECORD.
>> AGENDA ITEM COUNCIL BILL
20391 AN ARD NANS ESTABLISHING
THE CITY'S COMMITMENTS AND PLANS
FOR SUPPORTING CANNABIS WORKERS
AND SUPPORTING COMMUNITIES
DISPORTION NATALIE HURT BY THE
FEDERAL WAR ON DRUGS.
AGENDA IE TUM NUMBER TWO, AN
ORDINANCE RELATING TO LICENSING
CANNABISES IN SEATTLE AND AGENDA
NUMBER THREE COUNCIL BILL 393 AN
ORDINANCE RELATE TO GO
EMPLOYMENT IN SEATTLE FOR
BRIEFING, DISCUSSION AND
POSSIBLE VOTE.
>> THANK YOU VERY MUCH.
I ALSO WANT TO THANK THE MAYOR'S
OFFICE.
THEY HAVE BEEN AT COMMITTEE
MEETINGS JANUARY-APRIL AND IN
THE LAST TWO MEETINGS AS WELL.
THEY WERE LISTED ON THE AGENDA
TODAY BECAUSE WE'RE SO USED TO
HAVING THEM.
I WANT TO THANK THEM BECAUSE
THEY'RE NOT INTENDED TO COME AND
JUST WANTED TO TAKE A SECOND TO
RECOGNIZE THEM AND APPRECIATE
THE WORK THEY HAVE DONE.
SO WITH US TODAY PRESENTERS FROM
CENTRAL STAFF INCLUDING LISA
KAY, AMY GORE AND JASMINE
MOHAHA.
úAS WE GET TO EACH OF THE BILLS
IN FRONT OF US, EACH OF THE
CENTRAL STAFF LEADERS ON THOSE
PIECES OF LEGISLATION WILL BE
SPEAKING UP.
AS WE GET STARTED HERE TODAY, I
WANT TO TAKE A MOMENT BEFORE WE
DIVE IN TO CONSIDER THE
AMENDMENTS IN FRONT OF US TO
WHERE WE PAUSE AND REFLECT.
REFLECT ON HOW WE GOT HERE.
YES, THIS IS A CONVERSATION THAT
OUR OFFICE AND THIS COMMITTEE
HAS BEEN ENGAGED IN THROUGHOUT
THE YEAR BUT THIS IS AN
OPPORTUNITY FOR US TO PAUSE AND
PROCESS AND REALLY REFLECT ON
HOW MANY ORGANIZATIONS
INDIVIDUALS, BUSINESS OWNERS,
WORKERS AS YOU HAVE HEARD OVER
THE LAST FEW MEETINGS AND PUBLIC
TESTIMONY HAVE BEEN PUSHING BACK
AGAINST HARMFUL POLICIES.
POLICIES CAUSED BY THE FEDERAL
WAR ON DRUGS BUT ALSO HARMFUL
POLICIES THAT CAME OUT OF CITY
HALL NOT EVEN TEN YEARS AGO.
WE'RE HERE TODAY TO LOOK AT WAYS
THAT THE CITY OF SEATTLE IN THE
STATE OF WASHINGTON CAN PUSH
BACK ON THESE FEDERAL POLICIES,
THESE HARMFUL POLICIES ALSO
WITHIN THE CITY OF SEATTLE TO
IMPROVE LABOR STANDARDS TO
SUPPORT BLACK AND BROWN BUSINESS
OWNERS AND TO MAKE SURE THAT
WITHIN THE CANNABIS INDUSTRY
THERE'S STRONG TRAINING AND
SMALL BUSINESS SUPPORT AND
TECHNICAL ASSISTANCE AND WAYS
FOR US OVER TIME THROUGH THE
ADVICE FROM THE ADVISORY BOARD
TO INCORPORATE ADDITIONAL
POLICIES.
AS YOU ALSO HEARD IN PUBLIC
COMMENT, THIS IS A SMALL STEP OF
SMALL STEP IN THE RIGHT
DIRECTION TOWARDS UNDOING THOSE
PAST HARMS.
I WANT TO SPECIFICALLILY THANK
THE FOLKS WHO LAID THE GROUND
FOR THE SMALL STEPS TODAY, THE
GROUND WORK LED BY BLACK
EXCELLENCE AND EMERALD CITY
COLLECTIVE, AFRICAN AMERICAN
AFFAIRS COMMISSION AND ORGANIZES
WORKING ON THIS ISSUE ACROSS A
REGION INCLUDING UFCW 3,000
WORKING IN PARTNERSHIP WITH
BLACK LIFE COMMUNITY
ORGANIZATIONS OVER THE PAST FEW
YEARS AND I WANT TO THANK OUR
CITY STAFF, LARGELY PEOPLE OF
COLOR LED FROM THE FINANCE AND
STRAUF SERVICES DEPARTMENT,
OFFICE OF CIVIL RIGHTS WHO HAVE
BEEN WORKING DILIGENTLY IN
COMMUNITY OVER THE LAST THREE TO
FOUR YEARS INITIATING THE RACIAL
EQUITY TOOL KIT ANALYSIS IN 2018
AND DIRECTLY HAVING
CONVERSATIONS ON BEHALF OF THE
CITY ON HOW THINGS CAN BE DONE
DIFFERENTLY.
TODAY YEARS LATER, THAT HARD
WORK IS BEGINNING TO SEE THE
DAYLIGHT AND BEGINNING TO GET
PUT INTO STATUTE.
AGAIN, THANK YOU SO OUR LARGELY
PEOPLE OF COLOR LED CITY STAFF
FROM FINANCE ADMINISTRATIVE
SERVICES, OFFICE OF CIVIL RIGHTS
AS WELL WHO WORKED ON THIS
RACIAL EQUITY TOOL KIT AND HAVE
BEEN ASKING, YEARNING AND IN
SOME CASES #2K3457BD DEMANDING
ACTION ON THE ADVICE THEY GOT
FROM COMMUNITY OVER THE LAST FEW
YEARS.
WHILE WE ACKNOWLEDGE THIS IS A
STEP FORWARD TODAY, WE KNOW
THERE'S A LOT OF WORK TO DO.
SO I WANT TO THANK AGAIN BRIANNA
THOMAS AND DAN EDER FROM THE
MAYOR'S OFFICE ALONG WITH DEVON
AND GERALD FROM THE MAYOR'S
OFFICE AS WELL WHO REALLY HELPED
INITIATE THIS CONVERSATION AT
THE BEGINNING OF THE YEAR AND
THE MAYOR'S OFFICE WE KNOW
BECAUSE OF THE STRONG LEADERSHIP
THEY HAVE HAD ON THIS
LEGISLATION IN DRAFTING IT AND
SENDING IT TO KOUN SUL FOR
CONSIDERATION, WE KNOW THERE'S
MUCH WORK TO BE DONE AND THEY
ARE COMMITTED TO THE NEXT STEPS
TO MAKE SURE THAT THESE AIDEAS
COME TO FRUITION AND IN
PARTNERSHIP WITH THE STATE AS
WELL, WE CONTINUE TO PUSH FOR
MORE.
IN PARTICULAR, I WANT TO ALSO
ACKNOWLEDGE THAT WE HAVE STRONG
INTEREST IN MAKING SURE THAT
YEAR OVER YEAR WE'RE LOOKING AT
OPPORTUNITIES FOR US TO CONTINUE
TO INVEST IN CREATING MORE
EQUITY AND THAT WILL REQUIRE
BUDGET CONVERSATIONS WITH OUR
CITY BUDGET OFFICE AND THE
MAYOR'S OFFICE AS WE
COLLECTIVELY W TO RECOVER FROM
THE DEFICIT WE'RE FACING BUT
CONTINUE TO PLAN FOR DEEP
INVESTMENTS IN THE COMMUNITY.
IT'S CLEAR THAT OUR GOVERNMENT
POLICY VERSUS CAUSED HARM AS YOU
HAVE HEARD FROM PUBLIC TESTIMONY
DIRECTLY FROM VINLS CAUSED BY
THE PUBLIC POLICIES THAT CAUSE
HARM.
AND WE SHOULD BE CENTERING MUCH
OF OUR POLICY STRATEGIES TO
ADDRESS HARM ON THOSE WHO
EXPERIENCE HARM DIRECTLY.
BLACK CANNABIS OWNERS, WORKERS
AND OWNERS DISPLACED WHEN THE
STATE GAVE CANNABIS LICENSES
AWAY AND TOOK THEM AWAY FROM
BLACK OWNED BUSINESSES.
AND WORKERS.
SO WITH THAT, I WANT TO THANK
YOU ALL FOR THIS PROCESS AND
AGAIN, REITERATE THIS IS JUST A
FIRST STEP.
AND WITH THAT, YOU WOULD LIKE TO
TURN IT OVER TO AMY GORE, LISA
KAY AND JASMINE WHO WILL GO WITH
US SEQUENTIALLY THROUGH THE
LEGISLATION IN FRONT OF US.
AND WALK US THROUGH VARIOUS
AMENDMENTS.
UNFORTUNATELY THERE ARE SOME
SITUATIONS WHERE WE HAVE
COMPETING AMENDMENTS SO WE'LL
HAVE A CHANCE TO WALK THROUGH
THOSE AS WELL WITH CENTRAL STAFF
SO EACH COUNCILMEMBER
UNDERSTANDS WHICH ITEMS MIGHT BE
IN COMPETITION SO WHEN WE TAKE A
VOTE YOU UNDERSTAND THE
IMPLICATIONS FOR THE OTHER.
OKAY WITH THAT, WE'RE GOING TO
GO AHEAD AND CONSIDER KOUN SUL
BILL 120319 FIRST.
AND I GUESS IN ORDER TO HAVE THE
LEGISLATION IN FRONT OF US
OFFICIALLY SO WE CAN CONSIDER
AMENDMENTS I'LL MOVE IT.
I MOVE THE COMMITTEE RECOMMENDS
PASSAGE OF COUNCIL BILL 120319.
THIS IS THE ORDINANCE
ESTABLISHING THE CITY'S
COMMITMENTS AND PLANS FOR
SUPPORTING CANNABIS WORKERS AND
SUPPORTING COMMUNITIES
DISPORTION NATALIE HARMED BY THE
FEDERAL WAR ON DRUGS.
120391.
I HEARD A SECOND.
.
>> IF YOU WOULD PREFER ME TO
SHARE MY SCREEN.
>> THAT WOULD BE GREAT, THANKS.
>> ONE MOMENT.
IS OKAY CAN EVERYBODY
SEE THE TABLE?
>> YOU KNOW, THANK YOU FOR
BRINGING IT UP.
WE HAVE A SMALL SCREEN IN THE
ROOM HERE TODAY SO WE WILL DO
OUR BEST AND I KNOW FOLKS CAN
ALSO FIND IT IN THE CENTRAL
STAFF MEMO FOR THANKS FOR
SHARING THAT FOR FOLKS WATCHING
ELECTRONICALLY.
GO AHEAD.
>> OKAY.
SO FIRST UP FOR DISCUSSION IS
AMENDMENT ONE.
IT'S SPONSORED BY COUNCILMEMBER
TERESA MOSQUEDA.
THE AMENDMENT WOULD ADD A NEW
SECTION WITH MORE DETAIL ABOUT
WHO SHOULD DO THE CANNABIS NEEDS
ASSESSMENT.
IT WOULD SPECIFY THE NEEDS
ASSESSMENT SHOULD BE CONDUCTED
BY A SEATTLE BASED EDUCATIONAL
INSTITUTION IN PARTNERSHIP WITH
A NONPROFIT ORGANIZATION WITH
EXPERIENCE IN CURRICULUM
DEVELOPMENT, ADMINISTERING
RETAIL TRAINING AND
APPRENTICESHIP PROGRAMS AND IS
NOT PRIMARILY FUNDED BY CANNABIS
BUSINESS OR EMPLOYER
ASSOCIATIONS.
AS YOU MENTIONED COUNCILMEMBER
TERESA MOSQUEDA, AMENDMENT ONE
AND AMENDMENT TWO SPONSORED BY
COUNCILMEMBER SARA NELSON ARE
MUTUALLY EXCLUSIVE.
WOULD YOU LIKE ME TO DESCRIBE
AMENDMENT TWO AT THIS POINT SO
THEY CAN BE DISCUSSED TOGETHER?
>> THAT WOULD BE FINE, THANK YOU
AMY.
GO AHEAD.
>> AMENDMENT TWO AS I MENTIONED
SPONSORED BY COUNCILMEMBER SARA
NELSON WOULD ADD SPECIFICITY TO
THE BILL ASK CLARIFY THE NEEDS
ASSESSMENT SHALL BE CONDUCTED BY
AN INDEPENDENT ACADEMIC
INSTITUTION WITH LOCAL
EXPERIENCE IDENTIFYING TRAINING
NEEDS FOR WORKERS, DEVELOPING
INDUSTRY SPECIFIC TRAINING
CURRICULUM AND DEVELOPING JOB
SKILLS PROGRAMS AND LIKE I
MENTIONED, THOSE TWO ARE
MUTUALLY EXCLUSIVE AND THEREFORE
THE COMMITTEE NEEDS TO VOTE ON
ONE OR THE OTHER.
>> THANK YOU SO MUCH.
SO COLLEAGUES WHAT I'M GOING TO
DO IS MAKE SOME COMMENTS ABOUT
AMENDMENT NUMBER ONE.
I'LL THEN ALLOW COUNCILMEMBER
SARA NELSON SO MAKE COMMENTS
ABOUT AMENDMENT NUMBER TWO AND
WE'LL HAVE FOLKS ASK QUESTIONS
THEY MAY HAVE AND WE WILL GO
AHEAD AND MOVE TO PUT THEM IN
FRONT OF US.
IF AMENDMENT ONE PASSES OBAMALY
THEN AMENDMENT TWO WOULD FOT BE
FEEDED AND AMENDMENT ONE DOES
NOT PASS, AMENDMENT TWO WOULD BE
CONSIDERED.
WITH THAT, I'LL GO AHEAD AND
SHARE COMMENTS.
I WANT TO THANK FOLKS PROVIDING
FEEDBACK ON AMENDMENT NUMBER
ONE.
WE DID HEAR INCLUDING FROM SOME
OF MY COLLEAGUES AS WELL THAT
THERE WAS A NEED TO MAKE SURE WE
ARE UPDATING THE LANGUAGE IN
AMENDMENT NUMBER ONE ACCORDING
TO THAT FEEDBACK, WE WORKED
DILIGENTLY TO MAKE SURE WE'RE IN
CONVERSATION WITH THE MAYOR'S
OFFICE AS WELL WHO IN COMMITTEE
EXRESED CONTRACTING WITH THE ENL
OCCASIONAL INSTITUTION AND I
TOOK THE OPPORTUNITY TO WORK IN
PARTNERSHIP WITH MY COUNCIL
COLLEAGUES WHO HAD REACHED OUT
ON IT AND ALSO WITH THE MAYOR'S
OFFICE TO FIND SOME COMMON
GROUND HERE.
UNFORTUNATELY I DIDN'T KNOW
THERE WAS A PROPOSED AMENDMENT
IN COMPETITION SO I WAS WORKING
IN GOOD FAITH TO FIND THAT SO
I'LL SUMMARIZE THE AMENDMET AND
READ WHAT THE NEEDS ASSESSMENT
IS INTENDING TO DO.
IT SAYS THE CITY WILL FUND A
CANNABIS NEEDS ASSESSMENT TO
FURTHER CLARIFY WHAT
IMPROVEMENTS ARE NEEDED IN THE
INDUSTRY TO SUPPORT THE CITY IN
MOVING FORWARD.
AT A MINIMUM THE CITY WILL
PROVIDE DEMOGRAPHIC INFORMATION
ABOUT WORKERS, WORKERS CURRENTLY
EMPLOYED IN THE SEATTLE CANNABIS
INDUSTRY AND IN ADDITION TO
EVALUATING THE TRAINING NEEDS OF
THE INCUMBENT WORK FORCE, THE
STUDY WILL EVALUATE AND
DETERMINE THE HIGHEST TRAINING
FEEDS FOR WORKERS WHO WISH TO
ADVANCE IN THE INDUSTRY BEYOND
ENTRY LEVEL POSITIONS AND THOSE
SEEKING TO BECOME NEW ONNERS.
THE STUDY WILL INCLUDE
RECOMMENDATIONS ABOUT WHETHER
AND HOW TO FUND SUCH TRAINING.
I READ THIS BECAUSE IT'S SPORNT
WE REMEMBER THE NEEDS ASSESSMENT
IS REALLY CENTERED ON WHAT THE
WORK FORCE NEEDS.
IT TALKS ABOUT HOW WORKERS CAN
BECOME OWNERS BUT THE INTENTION
IS TO DEVELOP AN ASSESSMENT FOR
WORK FORCE DEVELOPMENT.
THAT'S SOMETHING EMBRACED BY
BOTH PARTIES, BY BOTH BUSINESS
AND LABOR AND THIS IS ABSOLUTELY
IN THE SAME VEIN AS WORK FORCE
DEVELOPMENT.
WHEN WE TALK ABOUT WORK FORCE
DEVELOPMENT AND IMPROVED
TRAINING AND WHAT WE NEED TO
CREATE SAFER ENVIRONMENTS FOR
FRONT LINE WORKERS AND ALLOW FOR
MOBILITY, IT'S ALWAYS INCLUDED
WORKERS AND EMPLOYERS AT THE
TABLE.
WHEN WE TALK ABOUT IMPROVING
LABOR LAWS, WE KNOW THAT LABOR
LAWS ARE STRONGEST WHEN THEY
HAVE WORKERS AT THE TABLE, FOLKS
WHO REPRESENT WORKERS AND
BUSINESS.
THERE'S NO DIFFERENCE HERE IN
WHAT WE'RE TALKING ABOUT IN
AAMENDMENT NUMBER ONE INCLUDES
WORKING WITH A NONPROFIT THROUGH
A PARTNERSHIP WITH THE LOCAL
SCHOOLS TO MAKE SURE THAT WE
BRING BOTH BUSINESS AND WORKERS
TO THE TABLE.
OUR LABOR LAWS IN WASHINGTON
STATE ARE SOME OF THE STRONGEST
AROUND THE COUNTRY.
OUR LABOR LAWS IN SEATTLE ARE
SOME OF THE STRONGEST AROUND THE
COUNTRY.
AND OUR LOCAL ECONOMIES IN
WASHINGTON STATE AND SEATTLE ARE
SOME OF THE STRONGEST AROUND THE
COUNTRY BECAUSE WE BROUGHT
WORKERS, UNION REPRESENTATIVES,
ASSOCIATIONS AND EMPLOYERS TO
THE TABLE.
THERE'S NOTHING TO
HERE BY PUTTING FORWARD A
PROPOSAL THAT IS UNIVERSALLY
APPLAUDED WHEN WE TALK ABOUT HOW
WE CREATE WORK FORCE STANDARD
DEVELOPMENT AND WHAT WE HAVE
DONE IN THIS REGION TO CREATE
STRONG APPRENTICESHIP PROGRAMS
THAT ARE APPLAUDED BY BUSINES
AND LABOR SO I WANT TO BE CLEAR.
WHAT THIS LEGISLATION IS
INTENDING TO DO IS HELP WORKERS
CREATE SAFER ENVIRONMENT AND
UPWARD MOBILITY AND INSURE WE'RE
LOOKING AT WORK FORCE
DEVELOPMENT EMBRACED BY OTHER
ARENAS.
THE COMMENTS I'VE SEEN SUBMITTED
VIA LETTERS AND PUBLIC TESTIMONY
EARLIER TODAY BROUGHT UP
CONCERNS AROUND UNIONS AND THE
ANTI-UNION COMMENTS ARE ACTUALLY
ANTI-WORKER.
THAT'S HARMFUL RHETORIC IN A
PLACE LIKE SEATTLE IN WASHINGTON
STATE WHERE WE HAVE STOOD BY
WORKERS BECAUSE WE KNOW WHEN WE
STAND BY WORKERS, IT IMPROVES
THE STABILITY OF LOCAL EMPLOYERS
AND IMPROVES OUR LOCAL ECONOMY.
WE MAY HAVE OTHER PLACES AROUND
THIS COUNTRY THAT ARE LARGELY
ANTI-UNION AND THAT RHETORIC
COULD FLY BUT NOT HERE, NOT IN
OUR STATE OR THIS CITY.
WE HAVE SEEN THE BENEFITS OF
BRINGING WORKERS AND BUSINESSES
TO THE TABLE SO I WANT TO PUT
THIS FORWARD TRULY WITH THE
INTENT OF MAKING SURE THAT WE
HAVE AN ENTITY THAT IS
KNOWLEDGEABLE ABOUT THIS SECTOR,
KNOWLEDGEABLE ABOUT THE GROWTH
AND THE FLEXIBILITY THAT IS
NEEDED FOR US TO RESPOND TO BOTH
STATE REGULATIONS CHANGING AND
THE OPPORTUNITY FOR EMPLOYERS AS
WELL AS WORKERS TO BE ABLE TO
EVOLVE IN THIS INDUSTRY WITH A
KNOWLEDGEABLE PARTNER THAT CAN
WORK IN PARTNERSHIP WITH LOCAL
SEATTLE SCHOOL INSTITUTIONS.
I'M PROUD OF THE WORK WE HAVE
DONE IN PARTNERSHIP WITH THE
MAYOR'S OFFICE ON THIS
LEGISLATION AND THE AMENDMENT
HERE AS AMENDED WHICH GIVES
DIFFERENCE TO THE MAYOR'S OFFICE
IN PARTNERSHIP WITH THE SEATTLE
BASED ENTITY WHO TRULY KNOWS HOW
TO BRING TOGETHER WORKERS AND
BUSINESSES CAN HELP US IDENTIFY
WAYS TO MAKE SURE THIS IS
ASSESSMENT IS NEEDED.
YOU REALLY WANT TO MAKE SURE
THAT THE WORDS LIKE WORK FORCE
DEVELOPMENT AND APPRENTICESHIP
ARE NOT SEEN AS DIRTY WORDS NOR
SHOULD THE TERMS "UNION" OR"
NONPROFIT".
TO HAVE CONCERN AROUND
NONPROFITS BEING RAISED RELAYS
TO ME THIS IS NOT ABOUT THE
INTENT OF THE ASSESSMENT THIS IS
A CONCERN ABOUT WORKER UNIONS
AND THIS IS NOT A PLACE FOR THAT
DISCUSSION.
THIS IS AN OPPORTUNITY TO FIND
OUT HOW WE CAN BEST PULL
TOGETHER WORKERS AND BUSINESSES
TO MOVE FORWARD ON THE NEEDS
ASSESSMENT.
SO WITH THAT I APPRECIATE THE
OPPORTUNITY TO WORK WITH SOME
COLLEAGUES WHO REACHED OUT ON
THIS AMENDMENT AND IN ADDITION
TO THAT, WITH THE MAYOR'S OFFICE
FOR HELP IN THINKING THROUGH THE
SCHOOL-BASED OR EDUCATIONAL
INSTITUTIONAL BASED APPROACH
HERE AND I DO HOPE I CAN EARN
YOUR SUPPORT FOR AMENDMENT
NUMBER ONE.
WITH THAT, COUNCILMEMBER SARA
NELSON WOULD YOU LIKE TO WALK
THROUGH AMENDMENT NUMBER TWO?
FOR THE FOLKS IN THE ROOM, IF
YOU WOULD LIKE TO MAKE
COUNCILMEMBER SARA NELSON'S
SCREEN LARGER SO WE CAN SEE HER,
THAT WOULD BE GREAT.
PERFECT, LOOKS BETTER.
COUNCILMEMBER SARA NELSON WE
CAN'T HEAR YOU.
YOU MIGHT BE ON MUTE STILL.
.
>> OKAY, THANK YOU.
ALL RIGHT SO I APPRECIATE
EVERYONE WHO CAME OUT FOR PUBLIC
COMMENT AND THE ENERGY GOING
INTO THIS LEGISLATION.
IT'S IMPORTANT WORK AND THERE'S
BEEN A LOT OF WORK ALREADY DONE
AT THE STATE LEVEL TO ADVANCE
SOCIAL EQUITY IN CANNABIS SO I
JUST WANT TO FOCUS ON WHAT'S
HAPPENED AT THE CITY SO FAR AND
IN 2018 FAS BEGAN WORK ALONG
WITH OED, SDCI, OCR TO ELIMINATE
RACIAL DISPARITIES IN CANNABIS.
HELD TWO DOZEN STAKE HOLDER
ENGAGEMENTS, CONVENES THE
CANNABIS COMMUNITY FORUM IN 2020
FEBRUARY AND CONDUCTED A SURVEY
IN 2019 REFERENCED IN THE PAST.
BUT LET ME REMIND PEOPLE, THIS
SURVEY WAS ONE OF THE PURPOSES
WAS TO FIGURE OUT WAYS TO
REDISTRIBUTE WEALTH IN THE
CANNABIS INDUSTRY AND THEY WENT
INTO LOOKING AT THREE DIFFERENT
MODELS, OWNERSHIP KREN TRICK,
WORK FORCE CENT RICK AND
COMMUNITY INVESTMENT FRAME WORK
SO THERE'S BEEN A LOT OF WORK
DONE ON THIS FRONT.
AND ONE OF THE PRODUCTS OF THAT
WORK WAS THE RACIAL EQUITY TOOL
KIT THAT CAME OUT OF THIS
INTERDEPARTMENT MENTAL EFFORT.
THEY ALSO PRODUCED FIVE KEY
POLICY CHANGE RECOMMENDATIONS.
AND THE STAKE HOLDERS ALSO PUT
FORWARD ADDITIONAL
RECOMMENDATIONS INCLUDING ALIGN
WITH THE STATE'S SOCIAL EQUITY
TASK FORCE RECOMMENDATIONS.
AND IN THE END, THERE WAS A LOT
OF AGREEMENT ON THE PATH GOING
FORWARD AND THIS WAS ALL
PRESENTED IN THE COMMITTEE
MEETING ON MARCH 22ND.
SO IT'S CLEAR THAT THE CITY
SUPPORTS THE CANNABIS INDUSTRY
AND AS A WHOLE AND REALLY DOES
WANT TO SEE IT THRIVE SO I WOULD
SAY IF THIS LEGISLATION IS
REALLY ABOUT ADVANCING CANNABIS
EQUITY, WE NEED TO LISTEN TO THE
COMMUNITY THAT HAS SPOKEN, THE
BLACK COMMUNITY MEMBERS WHO HAVE
COME TODAY AND HAVE ASKED THAT
THEIR NEEDS BE CENTERED IN THIS
DISCUSSION AND GOING FORWARD
BECAUSE OTHERWISE, IT SEEMS AS
THOUGH IT COULD BE SIMPLY A
VEHICLE FOR ADVANCING THE
INTEREST OF AN OUTSIDE OR
SPECIAL INTEREST SO ALL OF THAT
SAID, THIS NEEDS ASSESSMENT IS A
WAY EVEN THOUGH THERE HAVE BEEN
ALREADY A LOT OF NEEDS THAT HAVE
BEEN FORWARDED AND WE HAVE ALSO
TALKED ABOUT PUBLIC SAFETY AND
TRAINING, I AGREE THAT THERE'S
MUCH MORE THAT CAN BE DONE SO
THIS NEEDS ASSESSMENT IS
INTENDED I BELIEVE TO SURFACE
ADDITIONAL WAYS WE CAN ADVANCE
EQUITY.
AND IF THAT'S THE CASE, WE NEED
AN ENTITY THAT'S DOING THAT THAT
HAS EXPERTISE AND CAN PUT OUT A
PRODUCT THAT WILL BE USEFUL.
AND THERE WERE A COUPLE OF
ACADEMIC INSTITUTIONS MENTIONED
BY PAULA IN HER COMMENT.
THERE'S ALSO ANOTHER ACADEMC
INSTITUTION HERE IN TOWN,
SEATTLE CENTRAL, THEY HAVE A
CANNABIS INSTITUTE AND IT IS
DESIGNED TO HELP WORKERS
PROGRESS IN THE INDUSTRY.
SO I AM I SAING WE HAVE A LOT OF
ACADEMIC INSTITUTION THAT IS ARE
WELL EQUIPPED TO DO THIS WORK
AND WHY IS THAT IMPORTANT?
IT'S IMPORTANT BECAUSE THIS
WHOLE PROCESS HAS TO HAVE THE
TRUST OF EVERYBODY INVOLVED.
AND NEEDS TO BE BRING EVERYBODY
TO THE TABLE BOTH WORKERS AND
ACTUALLY THE CANNABIS COMMUNITY
THE RETAIL OWNERS BECAUSE WE'RE
TALK ABOUT GOING FORWARD IN A
WAY THAT HELPS THE INDUSTRY AS A
WHOLE.
SO THEY NEED TO HAVE THE TRUST
OF THE PARTICIPANTS AND THEY
HAVE TO BE INDEPENDENT.
FEW TRAL, NOT COMING IN WITH AN
AGENDA THAT'S ALREADY BEEN
PRETTY CLEAR IN DISCUSSIONS THAT
HAVE HAPPENED WITH MY OFFICE AND
AS I'VE MENTIONED BEFORE SO
UNLESS ALL THE PARTIES HAVE
CONFIDENCE THAT THE PARTY
CONDUCTING THE NEEDS ASSESSMENT
IS FAIR AND UNBIASED, THE
ASSESSMENT WILL LACK
CREDIBILITY, WON'T BE USEFUL AND
IT WILL LOSE THE TRUST AS WE SAW
THIS MORNING THE LETTER WE WANT
TO KEEP EVERYONE AT THE TABLE.
E WITH E WE DON'T WANT THE
RETAIL OWNERS TO LEAVE THE TABLE
BECAUSE THEY WILL BE
IMPLEMENTING THE MEASURES THAT
COME OUT OF THE NEEDS ASSESSMENT
SO I'M ASKING FOR AN HONEST AND
TRANSPARENT NEEDS ASSESSMENT TO
BE CONDUCTED.
NOT ONE THAT STACKS THE DECK FOR
A PARTICULAR INTEREST.
I'M ASKING FOR ONE THAT RESPECTS
THE EXPERTISE OF THE PEOPLE THAT
HAVE BEEN WORKING IN THE
CANNABIS INDUSTRY AS EMPLOYERS
AND EMPLOYEES.
AND JUST TO GO FORWARD WITH SOME
IMPARTIAL WORK THAT WILL END I
HELPING THE WHOLE COMMUNITY AND
THE INDUSTRY THRIVE IN SEATTLE.
AND SO I DON'T REALLY KNOW,
THAT'S MY OPENING STATEMENTS BUT
I THINK IT WOULD BE FRUITFUL TO
TALK ABOUT WHAT NONPROFITS IS
YOUR AMENDMENT CONTEMPLATING.
.
>> THANK YOU, COUNCILMEMBER SARA
NELSON.
COUNCILMEMBER LISA HERBOLD GO
AHEAD.
>> THANK YOU.
I WANT TO THANK YOU
COUNCILMEMBER TERESA MOSQUEDA
FOR MAKING CHANGES TO YOUR
AMENDMENT SINCE OUR LAST
COMMITTEE MEETING.
MAKING CLEAR ONE THAT THERE
ISN'T A SPECIFIC NONPROFIT NAMED
AND TO OUR CONVERSATION WITH THE
MAYOR'S OFFICE, WE HEARD FROM
THE MAYOR'S OFFICE THAT THEY
WILL BE IN THE DRIVER'S SEAT IN
THE PROCESS TO SELECT THE
NONPROFIT PARTNER AND I JUST
WANT TO SAY AS SIMPLY AS
POSSIBLE, THE IDEA OF HAVING THE
INDEPENDENT ACADEMIC INSTITUTION
AT THE LEAD BUT PARTNERING WITH
THE NONPROFIT IS SIMPLY TO MAKE
SURE THAT EVERYBODY WHO NEEDS TO
BE AT THE TABLE IS AT THE TAUBL
AND IS PART OF THE NONPROFIT
WORKS WITH MUCH LIKE A LOT OF
OUR ACADEMIC WORKER NEEDS
SURVEYS AND ACADEMIC WORK ABOUT
THE OUTCOMES OF OUR LABOR LAWS
AND THE ACADEMIC WORKS WITH A
NONPROFIT TO DO AS WE HEARD IN
PUBLIC COMMENT, SOME OF THE
SURVEYING AND FOCUS GROUP WORK
AGAIN TO MAKE SURE EVERYBODY IS
AT THE TABLE.
WE WANT WORKERS AT THE TABLE.
THE ORGANIZATION THAT SOME
PEOPLE ARE CONCERNED ABOUT IS A
LABOR MANAGEMENT JOINT
ORGANIZATION AND WE HAVE FOUND
AS COUNCILMEMBER TERESA MOSQUEDA
SAID, SOME OF OUR BEST WORK
FORCE TRAINING PROGRAMS HAVE
COME ABOUT BECAUSE OF THE
PARTNERSHIP OF WORKERS AND
MANAGEMENT, IN THIS CASE STORE
OWNERS SO IN MY MIND, THIS
AMENDMENT IS INTENDED TO MAKE
SURE THAT EVERYBODY IS AT THE
TABLE MOVING FORWARD AS PART OF
THE ASSESSMENT OF THE NEEDS OF
THE WORK FORCE.
>> THANK YOU VERY MUCH
COUNCILMEMBER LISA HERBOLD.
WITH THAT, IT'S HELPFUL TO GO
AHEAD AND MOVE INTO CONSIDERING
THE AMENDMENTS.
I MOVE TO AMEND COUNCIL BILL 319
IS THERE A SECOND.
>> YES.
>> THANK YOU IT'S BEEN MOVED AND
SECONDED.
I WILL NOT REHASH THE
CONVERSATION WE JUST HAD TO TEE
UP THESE AMENDMENTS.
I REALLY APPRECIATE LISA HERBOLD
DISTINCT SUMMARY OF THE VALUE OF
LABOR MANAGEMENT ENTITY BUT ALSO
AGAIN, UNDERSCORING A NONPROFIT.
THE WORD NONPROFIT SHOULD NOT BE
A SCARY THING.
AS WE HEAR FOLKS RAISE CONCERN,
I WANT TO MAKE SURE IT'S
IMPORTANT FOR US TO KNOW THAT
THIS IS REALLY AN EFFORT TO WORK
WITH AN ACADEMIC INSTITUTION AND
THIS IS IMPORTANT AND WHAT WE
HOPED FOR BUT WHEN WE INITIALLY
INTRODUCED THE AMENDMENT WE WERE
INCREDIBLY NEUTRAL AS ON THE
ORGANIZATION IN THE AMENDMENT WE
SENT TO LAW.
THE FEEDBACK WE GOT FROM LAW WAS
THAT WE NEEDED TO ACTUALLY HAVE
SOME EXAMPLES, BE SPECIFIC AND
SAY SUCH AS WHERE POSSIBLE AND
SO WE TRIED TO DO THAT.
BUT WANT TO MAKE SURE WE ARE
INCORPORATING THE FEEDBACK AND
MAKING THIS A DIFFERENCE TO THE
MAYOR'S OFFICE IN PARTNERSHIP
WITH THE CITY OF SEATTLE BASED
EDUCATIONAL INSTITUTION AND
WORKING TO LIFT UP THE VL OF
BRINGING EMPLOYERS AND EMPLOYEES
TO THE TABLE.
THANKS SO MUCH FOR CONSIDERING
THIS AMENDMENT AND COUNCILMEMBER
SARA NELSON FOR THE PURPOSES OF
DEBATE.
>> SO I DON'T THINK THAT
NONPROFIT IS A BAD NAME.
JUST SIMPLY WONDERING WHAT
NONPROFIT BUT THAT'S NOT MY
POINT FOR RAISING MY HAND.
YOUR AMENDMENT JUST SAYS
EDUCATIONAL INSTITUTION AND
MAKES NO MENTION OF INDEPENDENT
OR ACADEMIC SO THAT I BELIEVE
THAT THAT IS REALLY CRUCIAL TO
SPELL THAT OUT WHICH IS WHY I
PUT IT INTO MY AMENDMENT.
>> THANK YOU COUNCILMEMBER SARA
NELSON.
THE GOOD NEWS FOLKS IS THAT
COUNCILMEMBER SARA NELSON AND I
HAVE A VERY HARMONIOUS PIECE OF
LANGUAGE TO CONSIDER AFTER THIS
SO WE'LL TALK MORE ABOUT THE
NEUTRALITY AND BALANCE AS WELL
THAT WE ARE SPEAKING TO IN THE
NEXT AMENDMENT.
THE AMENDMENT IN FRONT OF US ONE
ANY ADDITIONAL COMMENT SNS
HEARING NONE MADAME CLERK CALL
THE ROLE ON ADOPTION OF
AMENDMENT ONE.
>> I HAVE AN ADDITIONAL COMMENT.
>> SO YOU JUST MADE ME REALIZE
THAT WE WILL HAVE REPRESENTATION
DEPENDING ON HOW THIS GOES DOWN
THE ADVISORY COMMITTEE IS A
PLACE WHERE WE CAN HAVE A
SPECIFIC ROLE FOR LEVER SO THAT
WILL BE PRESENTED IN THE BODY
THAT DEFINES THE SCOPE OF WORK
OF THIS NEEDS ASSESSMENT SO I'M
ASKING FOR THIS TO BE A SOLELY
NEUTRAL BODY THAT DOES FOT HAVE
PEOPLE THAT WILL THEN BE PART OF
THE ADVISORY COMMITTEE.
>> THANK YOU SO MUCH.
AGAIN, I WOULD REITERATE,
NEUTRAL MEANS BRINGING PEOPLE TO
THE TABLE WHICH IS WHAT AN
ENTITY DOES WHEN THEY BRING IN
WORKERS AND EMPLOYERS TO FIGURE
OUT TRAINING STRATEGIES TO MOVE
FORWARD.
IT'S IMPORTANT FOR US ALSO TO
CONSIDER THE NEEDS ASSESSMENT
BRINGS IN THE BEST PRACTICES AND
LOOKS AT WAYS TO ENHANCE
TRAINING AND OPPORTUNITY WITHIN
THE INDUSTRY AND SO HAVING
SUBJECT MATTER EXPERTS ON THE
INDUSTRY IS REALLY THE GOAL HERE
AND THEN WE'LL TALK ABOUT THAT
BALANCE TABLE IN JUST A SECOND.
OKAY IT'S BEEN MOVED AND
SECONDED.
ALL THOSE IN FAVOR, MADAME CLERK
COULD YOU CALL THE ROLE ON
ADOPTION OF THE AMENDMENT ONE.
>> COUNCILMEMBER LISA HERBOLD
YES.
>> COUNCILMEMBER ALEX PEDERSEN.
>> NO.
>> WAS THAT A NO?
>> YEAH.
>> COUNCILMEMBER SARA NELSON.
>> NO.
>> COUNCILMEMBER ANDREW J.
LEWIS.
>> YES.
>> MA DOM CHAIR TERESA MOSQUEDA.
>> AYE.
>> MADAME CHAIR THAT IS THREE IN
FAVOR, TWO OPPOSED.
>> THANK YOU VERY MUCH.
THE MOTION CARRIES AND AMENDMENT
NUMBER ONE IS ADOPTED.
AMY I ASSUME THAT MEANS THAT
AMENDMENT TWO IS NOT UP FOR
CONSIDERATION SHOULD WE MOVE TO
AMENDMENT NUMBER THREE AS
AMENDED?
>> IS THAT THE PARLIAMENTARIAN
STEP IN HERE?
CAN TWO AMENDMENTS NOT PROCEED
TO FULL COUNCIL DISCUSSION AND
VOTE?
>> WOULD YOU LIKE TO WEIGH IN ON
THAT?
>> YES, TERESA MOSQUEDA AT THIS
POINT AMENDMENT NUMBER TWO
CANNOT BE CONSIDERED BECAUSE
AMENDMENT ONE WAS ADOPTED.
THAT DOES NOT PROHIBIT THE
SPONSOR TO BRING BACK OR BRING
FORWARD AMENDMENT NUMBER TWO TO
THE CITY COUNCIL SMEETING ON
SEPTEMBER 6TH.
>> THANK YOU SO MUCH.
OKAY WE WILL GO AHEAD AND AGAIN
TALK ABOUT WHERE WE HAVE COMMON
GROUND.
WE HAVE DISTRIBUTED
ELECTRONICALLY TO THE
COUNCILMEMBERS I BELIEVE IT'S
GOING TO BE INCLUDED IN THE
MINUTES BUT WE HAVE ALSO HARD
COPIES HERE AT THE DESK FOR
FOLKS IN PERSON.
COUNCILMEMBER SARA NELSON AND
MYSELF DID HAVE THE OPPORTUNITY
TO TALK ABOUT AMENDMENTS THREE
AND FOUR AND REALLY WORK TO FIND
COMMON GROUND AND BALANCE.
COUNCILMEMBER SARA NELSON, WE
HAVE THIS JOINT AMENDMENT AND
I'M GOING TO DEFER TO YOU FOR
OPENING COMMENTS BUT FIRST, I
WOULD LIKE TO PUT THE AMENDMENT
IN FRONT OF US IF THAT SOUNDS
OKAY.
I MOVE TO AMEND
COUNCIL BILL 3091 AS PRESENTED
ON WALK ON AMENDMENT VERSION
THREE IS THERE A SECOND?
>> SECOND.
>> THANK YOU VERY MUCH.
IT'S MOVED AND SECOND WALK ON
AMENDMENT VERSION 2 IS IN FRONT
OF US COUNCILEMBER SARA NELSON
WOULD YOU LIKE TO SPEAK TO THE
INTENT BEHIND THE AMENDMENT?
>> YES, THE INTENT IS TO GET A
REPRESENTATION OF PEOPLE THAT
ARE INVOLVED IN AND HAVE A STAKE
IN THE CANNABIS INDUSTRY.
SO THE FIRST CAT GOUR HERE IS
REPRESENTATIVES FROM
ORGANIZATIONS THAT ADVOCATE FOR
THE CANNABIS INDUSTRY AND ITS
WORKERS.
AND I BELIEVE THAT THERE ARE TWO
CLEAR STAND OUTS HERE AND WOULD
MOST LIKELY COME DOWN TO UFCW
AND CRAFT CANNABIS COLLECTIVE.
WE HAVE TO HAVE FAIR AND EVEN
REPRESENTATION AND SO THAT IS
WHY THAT NUMBER IS TWO AND THESE
PEOPLE ARE IMPORTANT BECAUSE
THEY REPRESENT THE INDUSTRY AS A
WHOLE.
THEY'RE NOT OWNERS OR WORKERS.
THEY REPRESENT THE INTEREST OF
THE INDUSTRY AND THEY KNOW
WHAT'S HAPPENING AT A NATIONAL
LEVEL.
THEY CAN IDENTIFY BEST PRAK TESS
AND COME WITH SOME IDEAS FOR THE
NEEDS ASSESSMENT SO THAT'S WHY
IN INDUSTRY REPRESENTATION
CATEGORY IS IMPORTANT AND THAT'S
WHY THE NUMBER IS TWO.
I ALSO FELT STRONGLY AND WE
AGREED THAT THE PEOPLE WHO WILL
BE BENEFITTING FROM AND
IMPLEMENTING WHATEVER
RECOMMENDATIONS COME OUT OF THE
NEEDS ASSESSMENT BE REPRESENTED
AND I'M TALKING ABOUT EMPLOYEES
AND OWNERS.
THEY'RE THE ONES THAT WILL BE
LIVING DAY-TO-DAY WITH THE
IMPROVEMENTS THAT COME FORWARD.
THEY WILL ALSO STAND TO GAIN
FROM THE BENEFITS THAT ARE
PROVIDED IN THE OTHER TWO PIECES
OF LEGISLATION.
SO THIS CATEGORY IS TO AS YOU
CAN READ IT, TWO INDUSTRY
WORKERS, TWO BUSINESS OWNERS AND
THAT ALSO IS AN EVEN SPLIT.
THEN FINALLY, THE LAST
CATEGORIES THREE REPRESENTED IS
FROM THE COMMUNITIES THAT HAVE
BEEN HISTORICALLY HARMED BY THE
WAR ON DRUGS OR WHO HAVE
ADVOCATED FOR CANNABIS EQUITY IN
KING COUNTY.
AND WITH A PRIORITY FOR THOSE
THAT MEET THE SOCIAL EQUITY
CRITERIA ALREADY PUT FORWARD BY
THE STATE.
CLEARLY TRYING TO HAVE ALIGNMENT
WHAT'S BEEN DONE AT THE STATE
LEVEL AROUND IDENTIFYING EQUITY
PARTNERS, THE PEOPLE IN THIS
CATEGORY DO NOT HAVE TO BE
SOMEONE WHO IS TRYING TO GET A
LICENSE.
BUT THEY DO HAVE TO VIEW CLOSELY
TO THE CRITERIA WE HAVE
IDENTIFIED AND TRYING TO HELP.
SO THAT NUMBER IS THREE AND I
THINK THAT THIS IS A GOOD
REPRESENTATION OF THE INDUSTRY
IN GENERAL.
THEY CAN PUT FORWARD A WORK
SCOPE THAT WILL BE ROBUST AND
FAIR.
.
>> EXCELLENT, THANK YOU VERY
MUCH COUNCILMEMBER SARA NELSON.
I'LL JUST ADD TO THAT AND WE'LL
SEE IF THERE'S ADDITIONAL
QUESTIONINGS.
I WANT TO THANK COUNCILMEMBER
SARA NELSON FOR THE FEEDBACK
OVER THE LAST WEEK TO BE ABLE TO
FIND BALANCE IN THIS AMENDMENT
IS WHAT BOTH OF US INTEND TO DO.
THIS HAS THREE CATEGORIES,
BUSINESS REPRESENTATIVES, LABOR
REPRESENTATIVES AND COMMUNITY
REPRESENTATIVES EQUALLY
BALANCED.
THE IMPORTANT NOTE THAT
COUNCILMEMBER SARA NELSON PUT IN
THE FIRST SECTION THERE IN THE
AMENDMENT LANGUAGE IS THAT
IDEALLY THIS WOULD INCLUDE ONE
PERSON FROM THE INDUSTRY
ASSOCIATION AND ONE PERSON
REPRESENTING WORKERS.
THOSE TWO CATEGORIES ARE
COMPLIMENTED BY TWO WORKER
REPRESENTATIVES AND TWO
EMPLOYEER DEZ IG KNEE
REPRESENTATIVES MAKING THREE IN
EACH COLUMN AND COMPLIMENTED BY
THE THIRD CATEGORY OF THREE
COMMUNITY ORGANIZATIONS DIRECTLY
HARMED BY THE WAR ON DRUGS AND I
WOULD ALSO NOTE, BY THE PAST
POLICIES HERE IN SEATTLE WITHIN
THE LAST TEN YEARS SO PUTTING A
NOD TO OUR COLLEAGUES IN THE
AUDIENCE CALLING FOR DIRECT CALL
OUT FOR REPRESENTATION ON THE
ADVISORY BOARD HERE AS WELL AND
I THINK AGAIN COUNCILMEMBER SARA
NELSON FOR HER WORK TO STRIKE
THIS RIGHT BALANCE AND FOR THE
MAYOR'S OFFICE FOR CONTINUING TO
ECHO THE IMPORTANCE OF HAVING
THE RIGHT BALANCE FROM THE GET
GO.
THAT WAS THEIR INTENTION AND
THIS AMENDMENT REALLY JUST
BRINGS MORE OF THAT TO LIGHT SO
WE'RE ALL EMPHASIZING TO OUR
COMMUNITY PARTNERS WE'RE ON THE
SAME PAGE HERE.
COUNCILMEMBER SARA NELSON,
FOLLOW UP AND I DON'T SEE
ADDITIONAL HANDS SO WE GO TO A
VOTE.
>> I JUST WANTED TO UNDERSCORE
THE POINT YOU MADE THAT I FORGOT
TO MAKE WHICH IS PRECISELY IT
WAS PUBLIC COMMENT THE FIRST GO
AROUND AND THAT REALLY DID HONE
OUR INTEREST IN THIS CATEGORY.
>> THANK YOU.
AND THANKS TO OUR STAFF AS WELL.
I KNOW THEY HAD A BIG ROLE IN
THIS WITH GETTING COMMUNITY
FEEDBACK SO THANKS SO MUCH.
OKAY IT'S BEEN MOVED AND
SECONDED.
HEARING NO ADDITIONAL COMMENTS
MADAME CLERK THE ROLE.
>> COUNCILMEMBER LISA HERBOLD.
>> YES.
>> COUNCILMEMBER ALEX PEDERSEN.
>> YES.
>> COUNCILMEMBER SARA NELSON.
>> AYE.
>> COUNCILMEMBER ANDREW J.
LEWIS.
>> YES.
>> MA CAM CHAIR TERESA MOSQUEDA.
>> AYE.
>> THAT'S FIVE IF FAVOR NONE
OPPOSED.
>> WONDERFUL, THE MOTION CARRIES
AND THE AMENDMENT IS ADOPTED.
OKAY COUNCILMEMBER LISA HERBOLD
I BELIEVE THAT BRINGS US TO YOUR
AMENDMENT I'M HAPPY TO
CO-SPONSOR HERE TODAY.
WOULD YOU LIKE ME TO PUT IN
FRONT OF US FOR THE FOCUS OF
DISCUSSION?
>> OKAY I MOVE TO AMEND COUNCIL
BILL AS PRESENTED IN AMENDMENT
NUMBER FIVE IS THERE A SECOND?
?
>> YES.
>> I HEARD A SECOND.
IT HAS BEEN MOVED AND SECONDED
AND COUNCILMEMBER LISA HERBOLD
PRIME SPONSOR WOULD YOU LIKE TO
SPEAK TO IT?
>> PERFECT, THANK YOU SO MUCH.
THE AMENDMENT SIMPLY AGAIN
RECOGNIZES THAT THE LANGUAGE AS
ORIGINALLY PROPOSED DID NOT HAVE
EVERYBODY AT THE TABLE TO WHO
NEEDS TO BE IN THESE
DISCUSSIONS.
WE HAVE COMMUNITY ORGANIZATIONS
THAT ARE DOING AMAZING WORK
AROUND HELPING FOLKS WHO HAVE
LIVED EXPERIENCES IN THE WAR ON
DRUGS THAT ARE DOING AGAIN
AMAZING WORK HELPING PEOPLE
NAVIGATE.
THEIR DISENTANGLEMENT WITH THE
CRIMINAL LEGAL SYSTEM AND THEY
REALLY MUST BE AT THE TABLE WHEN
WE ARE LOOKING AT HOW TO MOVE
THIS WORK FURTHER SPECIFICALLY
AS IT RELATES TO THE
EX-SPONGEMENT OF RECORDS SO THIS
IS AN AMENDMENT THAT IS INTENDED
TO SPECIFY THAT THE CITY WILL
PARTNER WITH KING COUNTY AS WELL
AS COMMUNITIES NEGATIVELY
IMPACTED BY THE WAR ON DRUGS AND
THOSE WITH LIVED EXPERIENCE IN
THE CRIMINAL JUSTICE SYSTEM.
>> EXCELLENT.
THANK YOU VERY MUCH.
I WILL JUMP IN.
I DON'T SEE ADDITIONAL HANDS.
I WANT TO THANK YOU
COUNCILMEMBER LISA HERBOLD FOR
INCLUDING THE LANGUAGE HERE TO
REALLY FOCUS TO MAKE SURE WE'RE
CENTERING THOSE WITH LIVED
EXPERIENCE IN THE CRIMINAL
JUSTICE SYSTEM SO WE'RE INSURING
FOLKS ARE ABLE TO BE CENTERED IN
THESE DISCUSSIONS AS WE INSURE
TRUE EXSPONGSMENT OCCURS AND I'M
HONORD TO BE LISTED AAS
COSPONSOR ANY ADDITIONAL
COMMENTS?
OKAY I THINK THAT WILL SERVE AS
CLOSING AND STARTING AND MADAME
CLERK, COULD YOU PLEASE CALL THE
ROLE ON THE ADOPTION OF
AMENDMENT NUMBER FIVE?
>> COUNCILMEMBER LISA HERBOLD.
>> YES.
>> COUNCILMEMBER ALEX PEDERSEN.
>> ABSTAIN.
>> COUNCILMEMBER SARA NELSON
ABSTAIN.
>> COUNCILMEMBER ANDREW J. LEWIS
LEWIS.
>> YES.
MOSQUEDA.
>> AYE.
>> MADAME CHAIR THAT'S THREE IN
FAVOR, TWO ABSTAIN.
>> THANK YOU VERY MUCH WITH THAT
THE MOTION CARRIES AND AMENDMENT
NUMBER FIVE IS ADOPTED.
OKAY, COUNCILMEMBER SARA NELSON,
I AM GOING TO TURN IT TO YOU.
YOU DID HAVE AMENDMENTS SIX AND
SEVEN UP NEXT.
WOULD YOU LIKE TO PROVIDE US
WITH AN UPDATE ON THE AMENDMENTS
YOU SUGGESTED?
>> I HAVE WITHDRAWN THE
AMENDMENTS FOR NOW.
AND I EMAILED STAFF AND THE
MAYOR'S OFFICE AND YOUR STAFF AS
WELL.
>> OKAY.
EXCELLENT.
THANK YOU FOR THE RECORD
COUNCILMEMBER SARA NELSON HAS
WITHDRAWN AMENDMENTED NUMBER SIX
AND SEVEN.
OKAY.
AMY, DID WE GET THROUGH THE
AMENDMENTS FOR THIS FIRST PIECE
O LEGISLATION?
THINK IT'S READY FOR A VOTE ON
THE AMENDED LEGISLATION NOW.
>> WONDERFUL SO COLLEAGUES I
WANT TO THANK YOU AGAIN FOR THE
COLLECTIVE WORK ON THE
LEGISLATION WE HAVE AND REALLY
AGAIN UNDERSCORE OUR SUPPORT FOR
THE COMMUNITY DRIVEN PROCESS
THAT THE MAYOR'S OFFICE HAD
EMBARKED UPON.
I REALLY APPRECIATE
THAT WE HAVE FOUND A PATH WAY
FORWARD ON SOME OF THESE ITEMS
AND I THINK THAT THE LEGISLATION
IS STRONGER BECAUSE OF IT.
SO THANK YOU FOR THE WORK YOU
HAVE DONE ON THIS LEGISLATION
AND I DO WANT TO THANK THE BROAD
ARRAY OF COMMUNITY PARTNERS
CONTINUING TO TESTIFY IN
SUPPORT.
WE DO HAVE COUNCIL BILL 120391
AS AMENDED IN FRONT OF US.
IS THERE ANY ADDITIONAL
COMMENTS?
COUNCILMEMBER ALEX PEDERSEN GO
AHEAD.
>> THANK YOU CHAIR TERESA
MOSQUEDA.
I SUPPORT THE EQUITABLE GOALS OF
THESE THREE PIECES OF
LEGISLATION.
REALLY A FULL PACKAGE HERE FOR
EQUITY AND I PLAN TO SUPPORT THE
OTHER TWO PIECES OF LEGISLATION
BEFORE US TODAY.
WHILE I SUPPORT NUMEROUS
SECTIONS OF THIS COUNCIL BILL
120391 I'M CONCERNED ABOUT HOW
THE BILL WAS SUBSTANTIALLY
MODIFIED AND THE NEUTRALITY OF
THE NEEDS ASSESSMENT AND THE
LEGISLATION FROM THE MAYOR'S
OFFICE HAS BEEN CHANGED AND I
DON'T THINK THE AMENDMENT HAS
MADE IT BETTER FOR THE NEEDS
ASSESSMENT, I BELIEVE A
COMPETITIVE REQUEST FOR
PROPOSALS PROCESS SHOULD SELECT
AN OBJECTIVE NEUTRAL ACADEMIC
INSTITUTION SO DUE TO THIS
SUBSTANTIAL I NEED TO VOTE NO
TODAY PERHAPS IT CAN BE FURTHER
MODIFIED BEFORE THE FULL COUNCIL
VOTE AND WHILE I'LL BE VOTING NO
ON THIS BILL I WILL VOTE YES FOR
THE OTHER TWO PIECES.
>> OKAY.
COUNCILMEMBER SARA NELSON PLEASE
GO AHEAD.
>> IF I COULD SAY DIDO TO
COUNCILMEMBER ALEX PEDERSEN I
WOULD.
BUT BASICALLY I BELIEVE THAT
YES, THERE ARE MANY GOOD
MEASURES AND I'M REALLY SORRY
FOR HAVING WORKED SO DILIGENTLY
IN SUCH GOOD FAITH WITH YOU ON
THE MAKE UP OF THE ADVISORY
COUNCIL BUT I DO BELIEVE THAT
THE VOICES OF COMMUNITY WERE NOT
HEARD IN THE FORMATION OF THE
NEEDS ASSESSMENT AMENDMENT.
AND SO I WILL BE VOTING NO ON
PROCESS GROUNDS AND PERHAPS THAT
WE CAN WORK TOGETHER OVER THE
NEXT MONTH OR SO TO WORK TOWARDS
A NEEDS ASSESSMENT THAT'S TRULY
REFLECTIVE OF COMMUNITY NEEDS
AND ALSO NEUTRAL ACADEMIC
ENTITIES DOING THIS WORK.
>> COUNCILMEMBER LISA HERBOLD GO
AHEAD.
>> THANKS, I WANT TO STATE FOR
THE RECORD THAT WE WERE TOLD BY
THE EXECUTIVE I BELIEVE THOMAS
AND DAN EDER AND THEY CONFIRMED
THE PROCESS WOULD BE USING FOR
THE NEEDS ASSESSMENT WOULD NOT
BE A SOLE SOURCE CONTRACT AND IT
WOULD BE THE RESULT OF A
COMPETITIVE RFP.
THAT'S IMPORTANT TO NOTE, FOR
THE RECORD.
THAT WAS THE COMMITMENT MADE TO
US IN THE LAST MEETING.
>> THANK YOU VERY MUCH
COUNCILMEMBER, LISA HERBOLD AND
THAT'S CORRECT.
I WANT TO LIFT THAT UP.
I SPECIFICALLY ASKED ON THE
RECORD EVEN WITH THE LAST
AMENDMENT WE HAD IF THIS WOULD
BE A COMPETITIVE PROCESS THAT
WOULD BE DIFFERENCE SHL TO AN
RFP THROUGH THE MAYOR'S OFFICE
AND THE ANSWER WAS YES FOR DAN
EBER SO LET THE RECORD SHOW THIS
IS A NEUTRAL ASSESSMENT OF WHO
GETS TO PARTICIPATE ON THE NEEDS
AASSESSMENT AND CENTERING THIS
WITH ACADEMIC INSTITUTIONS
INSURE ORGANIZATIONS WHO HAVE
THE WORK IN THIS ARENA IS VERY
RELEVANT AND INCREDIBLY
IMPORTANT TO MAKE SURE THAT A
NEEDS ASSESSMENT DOES INCLUDE
WORKERS AT THE TABLE AS WELL AS
BUSINESSES SO THERE'S NO HIDING
OF THE BALL HERE.
WE ARE INCREDIBLY EXCITED ABOUT
THE OPPORTUNITY TO BRING PEOPLE
TO THE TABLE TO PROVIDE AN
ASSESSMENT OF WHAT WE NEED TO DO
IN THIS CATEGORY AND THE
RHETORIC IS FRANKLY DI VISIVE,
NOT HELPFUL AND ALREADY TRYING
TO PULL COMMUNITIES APART THAT
ARE ALREADY DISPORTION NATALIE
HARMED BY THE WAR ON DRUGS YES
BUT ALSO BY BEING PULLED APART
WITHIN ALREADY DIVERSE AND
COMPLEX SITUATIONS WHERE MANY
BUSINESS LICENSES HAVE BEEN
REMOVED FROM FOLKS AND MANY
WORKERS ARE IN HARM'S WAY AND WE
WANT TO DO EVERYTHING WE CAN TO
BRING PEOPLE TOGETHER.
THAT'S WHAT IT'S ALL ABOUT.
WITH THAT WE'RE READY TO VOTE.
WE HAVE COUNCIL BILL 120391 AS
AMENDED IN FRONT OF US ANY
ADDITIONAL COMMENTS?
COUNCILMEMBER SARA NELSON AND
COUNCILMEMBER ALEX PEDERSEN.
>> COUNCILMEMBER COUNCILMEMBER
ALEX PEDERSEN HAD HIS HAND UP
FIRST GO AHEAD.
>> YES, THANK YOU.
GLAD THAT THE COMPETITIVE
REQUESTS FOR PROPOSAL WAS PUT ON
THE RECORD.
I WAS SAYING COMPETITIVE
REQUESTS FOR ACADEMIC
INSTITUTIONS ONLY, THAT'S WHAT I
MEANT.
AND ALSO THE ADVISORY COMMITTEE
IS WHERE EVERYBODY WOULD BE AT
THE TABLE SO I'M GLAD TO SEE
THAT THE ADVISORY COMMITTEE WAS
INCLUDED.
THANK YOU.
>> THANK YOU FOR YOUR SUPPORT.
COUNCILMEMBER SARA NELSON.
>> THIS IS A FOLLOW UP FROM
COUNCILMEMBER LISA HERBOLD'S
POINT THAT WEZ YES THERE'S AN
RFP BUT CONTINUING WITH MY LINE
OF QUESTIONS, WHAT NONPROFTS
ARE WE TALKING ABOUT?
IF THERE AREN'T MORE THAN ONE
NONPROFIT THAT IS GOING TO DO
THIS WORK, THAT IS NOT
COMPETITIVE AND I DON'T SEE HOW
YOU DO IT AN RFP FOR ONE
ORGANIZATION THE WAY THAT
ORGANIZATION OR THAT NONPROFIT
IS DESCRIBED IN THE AMENDMENT.
SO.
>> WE HAVE TO BE HONEST WHEN WE
TALK ABOUT PARTNERING WITH A
NONPROFIT I THINK WE NEED TO BE
TRANSPARENT FROM THE GET GO IF
WE'RE GOING TO SAY THAT, WHAT
NONPROFITS ARE WE TALKING ABOUT
AND ARE THERE ENOUGH TO CHOOSE
FROM?
>> THANK YOU VERY MUCH.
OKAY.
LET'S GO AHEAD AND VOTE ON THE
FINAL BILL AS AMENDED COULD YOU
CALL THE ROLE ON ADOPTION OF
COUNCIL BILL 12039 AS AMENDED.
>> COUNCILMEMBER LISA HERBOLD.
>> YES.
>> COUNCILMEMBER ALEX PEDERSEN.
>> NO.
>> COUNCILMEMBER SARA NELSON.
>> NO.
>> COUNCILMEMBER ANDREW J.
LEWIS.
>> YES.
>> MADAME CHAIR TERESA MOSQUEDA.
>> AYE.
>> MADAME CHAIR THAT'S FIVE IN
FAVOR, TWO OPPOSED.
>> THANK YOU THE MOTION CARRIES
AND COUNCIL BILL 123391 AS
AMENDED WILL BE TRANSMITTED FOR
A VOTE ON SEPTEMBER 6TH I
BELIEVE.
LOOKING FOR THAT DATE IN MY
NOTES.
YES, SEPTEMBER 6TH, THANK YOU SO
MUCH.
OKAY LET'S GO AHEAD AND MOVE ON
TO AGENDA ITEM NUMBER TWO.
IT'S ALREADY BEEN READ INTO THE
RECORD AND I BELIEVE THIS IS
LISA KAY, GOOD MORNING LISA.
>> GOOD MORNING, COUNCILMEMBER
ALEX PEDERSEN.
>> I APOLOGIZE CHAIR, POINT OF
INQUIRY WHAT WAS THE FINAL VOTE
COUNT?
I HEARD 5-2 BUT WASN'T IT 3-2?
>> THE FINAL VOTE IS 3-2.
THANK YOU FOR CLARIFYING THAT
FOR THE RECORD.
>> THANK YOU.
.
>> GO AHEAD LISA, GOOD MORNING.
>> GOOD MORNING, COUNCILMEMBERS
AND MADAME CHAIR.
THIS WOULD CREATE A CITY SOCIAL
EQUITY CANNABIS LICENSE AND
ESTABLISH ELIGIBILITY CRITERIA
FOR THAT LICENSE CONSISTENT WITH
DRAFT RULES FROM THE STATE
LIQUOR AND CANNABIS BOARD.
UNDER THIS PROPOSAL THE LICENSE
FROM THE CITY WOULD NOT REQUIRE
AN ANNUAL FEE.
>> SHOULD THE STATE ENABLE
THESE IN THE FUTURE.
-- MUNICIPAL CODE FROM
MARIJUANA TO CANNABIS.
THERE IS ONE AMENDMENT TODAY
FOR YOUR CONSIDERATION.
IF THERE ARE NO QUESTIONS I CAN
SHOW MY SCREEN TO POST THE
AMENDMENT.
>> THAT WOULD BE GREAT. THANK
YOU VERY MUCH.
>> OKAY.
THAT'S SHOWING UP NOW.
>> IT'S NOT SHOWING.
THERE WE GO.
IT'S OKAY.
NO PROBLEM.
>> THANK YOU.
COUNCILMEMBER HERBOLD, WOULD
YOU LIKE TO MOVE YOUR
AMENDMENT?
>> I WILL MOVE THE AMENDMENT.
>> THE HAS BEEN MOVED AND
SECONDED.
WOULD YOU LIKE TO SPEAK TO YOUR
AMENDMENT?
>> I WOULD.
THIS IS PROVIDING A VEHICLE FOR
ME TO FORWARD SOMETHING THAT
SPEAKS TO THE BUSINESS LICENSE
FEE THAT I COMMITTED TO A
COUPLE OF YEARS AGO.
IT WAS SPONSORED DURING THE
BUDGET PROCESS SOME INCREASES
TO BUSINESS LICENSE FEES.
WE DID NOT CONSIDER FULLY THE
EQUITY IMPLICATIONS OF AN
INCREASE OF $3500 FOR ALL
BUSINESSES.
AT THE TIME WE ASKED FAS TO
CONSIDER A STEPPED APPROACH.
I HAVE BEEN IN TOUCH WITH FAS
OVER THE LAST SEVERAL YEARS
ABOUT THE POSSIBILITY OF
REDUCING SOME OF THE BUSINESS
LICENSE COST.
TWO THINGS.
ONE, RECOGNIZING THAT ALL OF
THESE BUSINESSES ARE NOT EQUAL.
BUT ALSO RECOGNIZING THAT THERE
IS WORK REQUIRED BY THE CITY,
AS COMPARED TO LICENSING WORK
REQUIRED BY THE STATE.
I'M REALLY PLEASED THAT THE
BILL, AS INTRODUCED, INCLUDES A
REMOVAL OF BOTH THE $250 FEE FOR
PROCESSING INSPECTIONS AND THE
$200 FEE FOR THE LICENSE
REQUIREMENT FEE.
MY AMENDMENT IS BASED ON A
PROPOSAL THAT FAS DEVELOPED
BACK IN 2020 AFTER THEIR
ANALYSIS CONDUCTED FOLLOWING
THE COUNCIL 2018 LEGISLATIVE
INTENT.
-- COINCIDES WITH 2000 SQUARE
FEET OR LESS. IT MUST COMPLY
WITH OF THE SAME REQUIREMENTS
AS ALL OTHER MARIJUANA
BUSINESSES.
THEY ARE GO ON TO SAY THE BEST
PRACTICES FOR REGULATORY FEE
SETTING ALLOW A CONSIDERATION
OF A -- FAS LEGISLATIVE
PROPOSAL WAS MOTIVATED THAT
THESE PRACTICES ALLOW A
REGULATORY AGENCY TO CONSIDER
ITS OWN ADMINISTRATIVE BURDEN
INTO ACCOUNT WHEN SETTING FEES.
-- REQUIRED TO INSPECT TRANSFER
BUSINESSES, SIGNIFICANTLY LESS
THAN OTHER LICENSED MARIJUANA
BUSINESSES.
FAS IMPOSES A REDUCED FEE FOR
THE TRANSPORTER CLASSIFICATION.
THERE ARE ONLY TWO CLEAR
LICENSEES IN SEATTLE.
THERE IS CURRENTLY NO
TRANSPORTER BUSINESS.
-- REDUCED FEE FOR THE
CLASSIFICATION AS RECOMMENDED
BY FAS. IT ESTABLISHES THE FEED
TO BE $2000 FOR THE SMALLER
BUSINESSES AS COMPARED TO 3500
AND THE IMPACT IS VERY SLIGHT
BECAUSE OF THE NUMBER OF
BUSINESSES THAT FALL INTO THE
CATEGORY.
THANK YOU.
>> THANK YOU VERY MUCH, COUNCIL
MEMBER HERBOLD.
I WILL SIT WITH THIS AMENDMENT
. IT TAKES ANOTHER STEP TOWARD
MEETING OUR EQUITY GOALS AND I
ENCOURAGE OUR COLLEAGUES TO DO
THE SAME AS WELL.
ANY ADDITIONAL QUESTIONS OR
COMMENTS?
I'M SEEING NONE.
MADAM CLERK, PLEASE CALL THE
ROLL ON THE ADOPTION OF
AMENDMENT ONE.
>> COUNCIL MEMBER HERBOLD?
>> YES.
>> COUNCILMEMBER PEDERSEN?
>> YES.
>> COUNCILMEMBER NELSON?
COUNCIL MEMBER NELSON?
>> AYE
>> COUNCIL MEMBER LOUIS?
>> YES.
>> COUNCILMEMBER MOSQUEDA?
>> AYE
>> IT CARRIES AND IS ADOPTED.
THE AMENDED BILL IS NOW BEFORE
US.
ARE THERE ANY ADDITIONAL
COMMENTS?
I'M SEEING NONE.
PLEASE, GO AHEAD.
IT'S ONLY SAY SOMETHING?
>> I DID.
ORIGINALLY I HAD AN AMENDMENT
THAT WOULD HAVE GIVEN PRIORITY
FOR A HOLDER OF MEDICAL
MARIJUANA LICENSING IN THE PAST
BUT THEY LOST THEM IN THE
TRANSITION TO RECREATION AND
LICENSING THEREOF.
I WAS RUNNING WITH THAT
AMENDMENT BECAUSE I BELIEVED
THAT THIS WAS A PIECE OF
LEGISLATION THAT WOULD BE
COMPLEMENTARY BUT TO BUILD ON
THE SOCIAL EQUITY CRITERIA PUT
FORWARD BY THE STATE.
THAT IS WHY I HAD THAT
AMENDMENT IN THERE.
WHEN COUNCILMEMBER HERBOLD
SAID, HOW WOULD THAT BE
OPERATIONALIZED , THOSE COME
FROM THE STATE.
IT BECAME CLEAR THAT THERE
REALLY WASN'T A WAY FOR THIS
PRIORITY TO BE INCLUDED IN THIS
PACKAGE.
SO WHEN I REALIZE THAT THIS
PACKAGE IS MOSTLY ABOUT THE
CHANGES THAT WE WERE MAKING TO
THE COST OF LICENSES, THAT IS
THE REASON WHY THAT WAS PULLED.
>> THANK YOU VERY MUCH.
WILL THE CLERK PLEASE CALL THE
ROLL ON THE PASSAGE OF COUNSEL
BILL 120392 AS AMENDED?
>> COUNCIL MEMBER HERBOLD?
>> YES.
>> COUNCILMEMBER PEDERSEN?
>> YES.
>> COUNCILMEMBER NELSON?
>> AYE.
>> COUNCILMEMBER LEWIS?
>> YES.
>> MADAM CHAIR MOSQUEDA?
>> AYE
>> THAT IS FIVE IN FAVOR AND
NOT A POST.
>> THANK YOU VERY MUCH.
IT CARRIES AND PASSED AS
AMENDED.
IT WILL BE MOVED TO THE
SEPTEMBER 6th SEATTLE COUNCIL
MEETING FOR A FINAL VOTE.
NEXT ITEM.
WE HAVE JASMINE WITH US.
I DON'T THINK THIS PIECE OF
LEGISLATION HAS ANY AMENDMENTS
TO IT.
COUNSEL BILL 120393.
>> THANK YOU.
AGAIN, MY NAME IS JASMINE.
A CENTRAL STAFF ANALYST POINT.
THIS BILL WOULD REQUIRE CANNABIS
BUSINESS EMPLOYERS TO TAKE
CERTAIN ACTIONS TO INCREASE
TRANSPARENCY AND REDUCE JOB
INSECURITY CAUSED BY CHANGES IN
OWNERSHIP.
FIRST, TO ADDRESS TRANSPARENCY
CONCERNS, INTEGRATED
ENTERPRISES TO PROVIDE WRITTEN
NOTICE THE EMPLOYEES OF THE
NAMES USED BY ANY OF THEIR
ASSOCIATED INTEGRATED
ENTERPRISES.
THIS NOTICE WOULD BE
INCORPORATED INTO THE CURRENT
NOTICE OF EMPLOYMENT
INFORMATION OBLIGATIONS THAT
EMPLOYERS ALREADY PROVIDE TO
THEIR EMPLOYEES.
TWO ADDRESS JOB INSECURITY
CAUSED BY CHANGES IN OWNERSHIP
OF THE CANNABIS BUSINESS THE
BILL WOULD REQUIRE OUTGOING
CANNABIS BUSINESS IS BEING SOLD
TO PROVIDE A PREFERENTIAL
HIRING LIST TO THE INCOMING
CANNABIS BUSINESS AND POST A
NOTICE OF CHANGE IN OWNERSHIP
AT THE JOBSITE.
AN INCOMING EMPLOYER WOULD THEN
BE REQUIRED TO HIRE FROM THAT
LIST FOR 180 DAYS AFTER THE
CHANGE IN CONTROL.
THEY MUST RETAIN EMPLOYEES FOR
AT LEAST 90 DAYS UNLESS THERE
IS A JUST CAUSE TO DISCHARGE
THEM.
THEY WOULD ALSO BE REQUIRED TO
POST A NOTICE OF CHANGE IN
OWNERSHIP AT THE JOBSITE FOR
180 DAYS AFTER THE CHANGE IN
CONTROL.
THAT CONCLUDES MY BRIEF SUMMARY
OF COUNSEL BILL 120393.
TO DATE I HAVE RECEIVED NO
REQUEST FOR AMENDMENTS ON THIS
BILL, AS MENTIONED.
I'M HAPPY TO ANSWER ANY
QUESTIONS FROM THE COMMITTEE.
>> EXCELLENT.
THANK YOU SO MUCH.
I WANT TO THANK THE MAYOR'S
OFFICE FOR WORKING DILIGENTLY
TO SHARE SOME INITIAL IDEAS
AROUND THE SOLICITATION IN
ADVANCE.
I'M GLAD TO HEAR THERE ARE NO
AMENDMENTS.
I THINK THAT IS A REFLECTION OF
A JOB WELL DONE ON THE INITIAL
DRAFT.
IF THERE IS NO AMENDMENT THE
COMMITTEE RECOMMENDS PASSAGE OF
COUNSEL BILL 120393.
IS THERE A SECOND?
>> SECOND.
>> THANK YOU, IT HAS BEEN MOVED
AND SECONDED.
ARE THERE ANY ADDITIONAL
COMMENTS?
I'M HEARING NONE.
MADAM CLERK, PLEASE CALL THE
ROLL.
>> COUNCILMEMBER HERBOLD?
>> YES.
>> COUNCIL MEMBER PEDERSEN?
>> YES.
>> COUNCILMEMBER NELSON?
>> AYE.
>> COUNCILMEMBER LEWIS?
>> YES.
>> MADAM CHAIR MOSQUEDA?
>> AYE >> THAT IS FIVE IN
FAVOR AND NOT A POST.
>> I'M EXCITED BECAUSE THE
MOTION CARRIES.
THAT'S OUR THIRD AND FINAL
PIECE OF LEGISLATION FOR
CANNABIS EQUITY.
THIS AND THE OTHER TWO BILLS
WILL BE SENT TO THE SEPTEMBER
6th SEATTLE COUNCIL MEETING FOR
A FINAL VOTE. CONGRATULATIONS
TO ALL WHO HAVE WORKED ON THIS
AND WE WILL SEE YOU ON
SEPTEMBER 6th FOR A FINAL VOTE.
WITH THAT WE CAN MOVE ON TO
AGENDA ITEM NUMBER FOUR.
>> AGENDA ITEM NUMBER FOUR.
ECONOMIC AND REVENUE FORECAST
FOR AUGUST UPDATE FOR BRIEFING
AND DISCUSSION.
>> THANK YOU VERY MUCH.
I AM SO THANKFUL THAT WE HAVE
WITH US THE FOLKS FROM THE
OFFICE OF THE ECONOMIC AND
REVENUE FORECAST COUNCIL.
THIS IS AN INDEPENDENT OFFICE.
ALONG WITH THE TEAM FROM THE
CITY BUDGET OFFICE.
WE WILL HAVE WITH US DIRECTOR
BEN NOBLE, SEAN THOMPSON, ALL
FROM THE OFFICE OF ECONOMIC AND
REVENUE FORECAST.
WE HAVE JULIE TINGLEY, DAVE
HENNES, AND ALEX . TODAY I
WOULD LIKE TO ASK THE TEAM HERE
-- IF YOU CAN TRY TO ABBREVIATE
YOUR PRESENTATION.
I KNOW WE ORIGINALLY INTENDED
FOR A MUCH LONGER PRESENTATION
TODAY.
IT AS A REMINDER FOR EVERYONE
THE FULL PRESENTATION FROM THE
OFFICE OF ECONOMIC REVENUE
FORECAST CAN BE FOUND, FROM
LAST MONDAY'S PRESENTATION,
IT'S ALL AVAILABLE ON THE
SEATTLE CHANNEL.
IF YOU WANT MORE DETAILS THAT
THEY ARE NOT ABLE TO GET INTO
TODAY WE ENCOURAGE YOU TO WATCH
THE FULL PRESENTATION FROM LAST
MONDAY.
WITH THAT I'M EXCITED THAT WE
HAVE THE OPPORTUNITY, AS WE
HAVE COMMITTED TO EVERY
QUARTER, TO BE ABLE TO PROVIDE
A REPORT OUT IN THE OFFICE OF
ECONOMIC AND REVENUE FORECAST
IN THEIR PRESENTATION TO THE
FORECAST COUNCIL. AGAIN, THAT
TOOK PLACE ON AUGUST 8th.
THE PRESENTATION TODAY IS AN
ABBREVIATED VERSION OF THAT
PRESENTATION AND IT WILL SHOW
THAT WE CONTINUE TO RECEIVE
SHAKY NEWS AT BEST AT HOW THE
REVENUE PROJECTIONS FOR THE
CITY WILL CONTINUE TO COME IN
AND HOW THAT WILL IMPACT OUR
OVERALL HEALTH FOR THE GENERAL
FUND.
THIS WILL BE A PREVIEW OF WHAT
THE MAYOR'S OFFICE IS
CONSIDERING FOR THEIR
DELIBERATIONS IN CRAFTING THEIR
FALL BUDGET THAT WILL BE
TRANSMITTED TO US AT THE END OF
NEXT MONTH.
WITH THAT, THANKS AGAIN TO
DIRECTOR NOBLE FOR THE
ABBREVIATED VERSION TODAY.
YOU ARE UP FIRST.
>> THANK YOU.
MY PLEASURE.
I WILL LEAVE THE PRESENTATION
AS WE MOVE THROUGH IT.
WE WILL MOVE TO ACTUAL REVENUE
DISCUSSIONS.
ALSO DAVE, ALEX, IT CAN JOIN IN.
WITH THAT I'M GOING TO DIVE IN
TO OUR POWERPOINT PRESENTATION.
IT'S GOING TO GO RELATIVELY
QUICKLY GIVEN THE TIME.
I'M HAPPY TO STOP IF THERE ARE
QUESTIONS.
HERE WE GO.
REAL QUICK, WE ARE GOING TO
START WITH A BRIEF UPDATE ON
HOW THE ECONOMY HAS CHANGED
SINCE APRIL WHEN WE DID OUR
INITIAL FORECAST FOR THIS YEAR.
WE WILL TALK ABOUT WHAT THE
NATIONAL AND REGIONAL ECONOMIC
FORECASTER LOOKING LIKE.
LASTLY, WHAT ARE THE
IMPLICATIONS OF THOSE FORECASTS
ON OUR SPECIFIC PREDICTIONS FOR
REVENUES HERE IN THE CITY?
BOTH FOR THIS YEAR, 2022, BUT
ALSO FOR 2023 AND 2024.
HEADLINE NEWS, IN TERMS OF THE
ECONOMY, HAS NOT BEEN
SURPRISING.
IT'S ALL ABOUT INFLATION.
IT ALSO THE FEDERAL RESERVE'S
RESPONSE TO INFLATION AND THE
POTENTIAL IMPACT THAT RAISING
INTEREST RATES HAS ON THE
ECONOMY.
WE HAVE ACTUALLY SEEN THE TOTAL
PRODUCTIVITY OF THE U.S.
DECLINE FOR TWO QUARTERS.
AT THE SAME TIME THE EMPLOYMENT
MARKET REMAINS STRONG.
500,000 JOBS CREATED NATIONWIDE
IN JULY.
THERE ARE MIXED MESSAGES ABOUT
WHAT'S GOING ON IN HERE.
ALL A PRODUCT OF AN ECONOMY
EMERGING OUT OF THE PANDEMIC.
A KEY QUESTION IS GOING TO BE,
HOW DOES THAT BALANCE?
DOES THE FED MOVED TO COOL
THINGS OFF BY RAISING RATES?
ARE THEY ABLE TO DO THAT TO
BRING DOWN INFLATION WITHOUT
HAVING A NEGATIVE IMPACT ON
JOBS AND JOB GROWTH?
ONE POINT I WANT TO MAKE AS A
MOVE ON HERE.
IN THE FORECAST YOU WILL SEE,
THE BASELINE FORECAST,
ULTIMATELY THE BASIS FOR OUR
REVENUE NUMBERS.
WE HAD ANTICIPATED MUCH OF THE
RECENT NEWS ABOUT THE ECONOMY.
IT HAD ANTICIPATED THAT THE GDP
WOULD DECLINE.
ALTHOUGH IT WASN'T GOOD NEWS IT
WAS NOT A SURPRISE RELATIVE TO
THE FORECAST THAT WE ARE
WORKING WITH.
SIMILARLY, THE FED RESPONDED
WITH A THREE-QUARTER PERCENTAGE
RATE INCREASE.
SIGNIFICANT INCREASES IN THE
FED RATE.
THOSE WERE ALSO ANTICIPATED.
SOME OF THE REASONS BAD NEWS IS
BAKED IN, IF YOU WILL.
JUST ILLUSTRATE HOW INFLATION
HAS TAKEN OFF, HOW TO BECOME A
DOMINANT FORCE, THIS GRAPHIC
SHOWS YOU, AT LEAST INITIALLY,
THIS IS THE EXPECTED PATH OF
INFLATION WHEN WE GIVE YOU A
REVENUE FORECAST LAST NOVEMBER
WITH THE ADOPTED BUDGET.
THEY SAID INFLATION WOULD PEAK
AT ABOUT 5% AND WOULD ALREADY
BE WELL IN DECLINE.
THAT WAS REVISED WHEN WE DID
THE APRIL FORECAST. AT THAT
POINT, IF YOU RECALL, INFLATION
HAD SPIKED IN JANUARY AND
FEBRUARY.
BUT STILL THE EXPECTATION IS
THAT IT WOULD COME DOWN QUICKLY.
THAT WAS A UNIVERSAL
EXPECTATION AT THAT TIME.
AS WE DELIVER THE FORECAST THE
EXPECTATIONS AND REALITY ON
INFLATION HAVE SHIFTED UP AND
AGAIN WE HAVE NATIONAL RATES
ABOVE 9%. NOTICE THAT THE
CONTINUED EXPECTATION IS THAT
THE ACTIONS OF THE FED WILL
WORK AND INFLATION WILL DROP
RELATIVELY QUICKLY.
WE MAY HAVE SEEN THE FIRST DATA
POINT OF THAT.
THE NUMBER FOR JULY WAS BELOW
THAT FOR JUNE.
BUT THE EXPECTATION IS THE
ACTIONS OF THE FED -- BY THE
MIDDLE OF NEXT YEAR INFLATION
WILL BE BACK BELOW 4%. AGAIN,
THAT'S CONSISTENT WITH THE
APPROACH OF THE FEDS.
THE EXPECTATION IS THEY WILL
RAISE INTEREST RATES IN SOME
WAYS TO MAKE THIS SO.
WITH POTENTIAL IMPLICATIONS FOR
EMPLOYMENT.
BUT THAT IS THE EXPECTATION AND
THAT IS WHAT IS REFLECTED IN
THE FORECAST.
IN TERMS OF EMPLOYMENT LOCALLY
WE HAVE NOT REACHED FULL
RECOVERY FROM THE PANDEMIC.
BUT THE RED LINE IN THIS
GRAPHIC SHOWS A TOTAL NUMBER OF
JOBS THAT REMAIN LOST RELATIVE
TO THE PRE-PANDEMIC LEVELS.
20,000 JOBS.
THAT'S ABOUT 1% OF THE REGIONAL
EMPLOYMENT LEVELS.
THE OTHER THING THIS GRAPHIC
SHOWS YOU, AND THIS IS A REALLY
IMPORTANT POINT, THE JOB
RECOVERY HAS BEEN VERY UNEVEN.
IF YOU LOOK DOWN TO THE BOTTOM
AND TO THE RIGHT, PROFESSIONAL
SERVICES INFORMATION, TRADE,
WHICH IS A LOT OF THE ONLINE
RETAIL TRADE BEING REPRESENTED
THERE.
THOSE SECTORS HAVE ACTUALLY
INCREASED THEIR TOTAL
EMPLOYMENT SINCE THE BEGINNING
OF THE PANDEMIC.
WE HAVE BEEN GROWING IN THOSE
AREAS STRONGLY.
AT THE SAME TIME LEISURE,
HOSPITALITY, MANUFACTURING
CONTINUE TO LAG.
THE HOTEL, RESTAURANT, AND
OTHER ASPECTS OF LEISURE AND
HOSPITALITY HAVE NOT FULLY
RECOVERED.
THE GOOD NEWS ON THAT FRONT.
THE SUMMER TOURIST SEASON
APPEARS QUITE STRONG.
WE HAVE DATA FROM THE NUMBER OF
VISITORS INTO THE DOWNTOWN
AREA.
AGAIN, IT'S NOT BACK TO PRE-
PANDEMIC LEVELS BUT IT IS
LOOKING STRONG.
WE DO HAVE SOME CONCERN, GOING
FORWARD, ABOUT THE ROLL OF THE
TECH SECTOR AND WHETHER IT WILL
BE AS STRONG OF A FORCE.
THE REDLINE IS SHOWING
EMPLOYMENT GROWTH IN THE TRADE,
INFORMATION, AND PROFESSIONAL
BUSINESS SECTORS, WHICH CAPTURE
THE TECHNOLOGY EMPLOYMENT.
WHAT THEY SHOW IS, SINCE 2011,
WE HAVE SEEN FIVE, SIX, 7%
GROWTH IN EMPLOYMENT IN THOSE
SECTORS.
HIGH-PAYING JOBS IN THOSE
SECTORS.
THE BLUE LINE IS THE GROWTH AND
NOTES IN THE SAME JOB.
IT HAS ALSO BEEN VERY STRONG.
SEATTLE IS INCLUDED IN THAT
BLUE LINE.
WHAT IS APPARENT IS WE HAVE
BEEN LEADING, THE CITY HAS BEEN
LEADING THAT REGIONAL GROWTH
AND EMPLOYMENT. THAT IS
CONSISTENT.
WE HAVE SEEN THIS.
WE HAVE SEEN AMAZON, FACEBOOK,
APPLE, AND THE LIKE, INCREASING
THEIR PRESENCE HERE IN THE CITY.
BUT THERE IS AN OPEN QUESTION
ABOUT WHETHER THAT LEVEL OF
GROWTH IS SUSTAINED INTO THE
FUTURE.
THERE IS AT LEAST SOME INITIAL
DATA AND ANECDOTES THAT SUCCESS
OTHERWISE.
THE REGIONAL COUNCIL HAS
EMPLOYMENT DOWN TO A MUNICIPAL
LEVEL.
WHEN IT SHOWS, AND 2021, THAT
THE FIRST EVIDENCE OF
EMPLOYMENT GROWTH IN THE
SECTORS HAS DROPPED OFF IN THE
CITY.
AND WITH IT IT HAS PULLED THE
REGION DOWN AS WELL.
CURRENTLY, BECAUSE OF THE WORK
FROM HOME ISSUE AND TRACKING
EMPLOYMENT BY LOCATION IS A
TRICKY THING TO DO.
I WOULD DESCRIBE TO YOU THIS
PRELIMINARY DATA.
BUT THEY ARE CONSISTENT WITH
THE ANECDOTAL INFORMATION WE
HAVE HEARD FROM LARGE TECH
EMPLOYERS ABOUT HIRING
SLOWDOWNS OR FREEZES.
AND ALSO THEIR INVESTMENTS IN
FACILITIES ON THE EAST SIDE OF
THE LAKE.
THINK ABOUT THE SEATTLE ECONOMY
GOING FORWARD, SPECIFIC TO THE
CITY, THIS INFORMATION HAS
CERTAINLY INFLUENCE OUR
THINKING ABOUT LONG-TERM GROWTH.
AND AS YOU CAN SEE, GROWTH IN
THE PAYROLL EXPENSE TAX
REVENUES.
A PIECE OF THE OVERALL PICTURE
HERE.
LET'S TALK ABOUT THE NATIONAL
AND REGIONAL FORECAST LOOKING
FORWARD.
WHAT ARE FOLKS PREDICTING ABOUT
THE ECONOMY AND HOW ARE THOSE
PREDICTIONS CHANGING IN RECENT
MONTHS?
AGAIN, THIS IS A GRAPHIC THAT'S
DESIGNED TO CONTRACT THE
NATIONAL ECONOMY.
SPECIFICALLY ON THE PLANET.
THERE ARE OTHER METRICS YOU
COULD USE.
YOU WOULD SEE SIMILAR PATTERNS
IF YOU DO.
WHAT YOU SEE HERE, AGAIN, THIS
IS THE EXPECTATION IN THE
FORECAST FROM OCTOBER.
WHEN WE WERE DEVELOPING A
FORECAST THAT THIS YEAR'S
BUDGET WAS BASED ON.
YOU CAN SEE THERE IS A DRAMATIC
DROP IN ON A PLANET SINCE THE
PANDEMIC.
THE EXPECTATION WAS GROWTH
CONTINUING MODESTLY INTO THE
FUTURE.
THAT WAS REVISED SLIGHTLY, AND
ONLY SLIGHTLY WHEN WE BROUGHT
YOU THE APRIL FORECAST.
WHAT HAPPENED THERE IS THINGS
ARE GOING A LITTLE BETTER IN
THE NEAR-TERM.
SO YOU CAN SEE THE EMPLOYMENT
FORECAST WENT UP AT A NATIONAL
LEVEL.
THAT WAS APPROXIMATELY THE SAME
IN THE LONGER-TERM.
THINGS ON THE UNEMPLOYMENT
úFRONT HAD BEEN LOOKING AT.
THE MORE RECENT FORECASTS
INDICATE A SLOWER RECOVERY IS
EXPECTED INTO NEXT YEAR AND
BEYOND.
WE ARE STILL SEEING STRONG
EMPLOYMENT GROWTH.
WE MENTIONED THOSE STRONG
NUMBERS FROM JULY.
GIVEN THAT THE FED IS WORKING
HARD NOW TO RAISE INTEREST
RATES AND COOL THINGS DOWN IN
AN EFFORT TO BRING DOWN
INFLATION THE EXPECTATION IS
THAT THE JOB GROWTH WILL BE
MUCH MORE INTO 2024 AND 2025.
YOU WILL SEE THIS EFFECT IN OUR
REVENUE FORECAST.
AGAIN, ON AVERAGE, EXPECTATION
OF SLOWER GROWTH GOING FORWARD.
THE OTHER ISSUE THAT HAS EMERGED
OUT OF THE NATIONAL ECONOMY AND
IN THOSE FORECASTS IS AN
INCREASING RISK OF A RECESSION.
THE NATIONAL FORECAST GIVES US
THREE SCENARIOS.
A BASELINE, AND OPTIMISTIC AND
PESSIMISTIC.
THE DARKER LINE HERE IS THAT
THE FORECAST, AGAIN FROM JULY,
THE PESSIMISTIC SCENARIO.
RATHER THAN SEEING RELATIVELY
WEAK BUT PRESENT JOB GROWTH IN
THE BASELINE FORECAST, IN THE
PESSIMISTIC FORECAST WE WOULD
SEE JOB LOSS AS THE ECONOMY
WOULD ENTER A RECESSION.
AN IMPORTANT POINT IS RELATIVE
TO OUR LAST FORECAST, THE
PROBABILITY THAT IS ASSIGNED TO
THIS POSSIBLE SCENARIO HAS
INCREASED.
THEY WENT FROM THINKIN THIS
COULD BE A 35% PROBABILITY TO A
45% PROBABILITY.
SO IN SOME SENSE THEY ARE
SHOWING US TWO SCENARIOS AND
ONLY PUTTING US SLIGHTLY HIGHER
IMPROBABILITY ON THE BASELINE.
SINCE THEN WE HAVE HAD STRONG
JOB NUMBERS.
EARLIER THIS WEEK WE HAD A
SLIGHTLY REVISED FORECAST AND
THE PESSIMISTIC SCENARIO IS NOT
QUITE AS BLEAK.
NONETHELESS IT'S PROBABILITY
STILL HOLDS A 45%.
THERE'S STILL A CONCERN THAT,
AS THE FED TAKES ACTION, WE
COULD TIP INTO A RECESSION
ENVIRONMENT.
IF YOU LOOK TO THE REGION YOU
WILL SEE A SIMILAR STORY.
THAT'S EMPLOYMENT, AS WE SAW
BACK IN OCTOBER.
IT LOOKED BETTER IN APRIL.
AGAIN, IN THE NEAR TERM WE ARE
SEEING STRONGER JOB GROWTH AND
THE SAME EXPECTATION FOR THE
LONG RUN.
BUT NOW, MORE RECENTLY, THINGS
HAVE COOLED SOME.
SO WE SEE SLOWER JOB GROWTH IN
THE NEAR-TERM.
AND THEN AGAIN FOR THE LONG
RUN.
IT'S IMPORTANT TO NOTE THAT THE
RATE OF JOB GROWTH, RELATIVE TO
THE NATION, THIS IS A REGIONAL
FORECAST.
IT'S STILL STRONG.
WE ARE STILL EXPECTING THE
REGION TO RETURN TO A PERIOD OF
GROWTH AND OUR GROWTH HAS
GENERALLY OUTPACED THE NATIONAL
ECONOMY.
TWO OR THREE YEARS OUT WE ARE
EXPECTING A RETURN TO A PATTERN
MORE SIMILAR TO WHAT WE HAVE
SEEN PRE-PANDEMIC.
AGAIN, AT A REGIONAL LEVEL THIS
IS SHOWING WHAT THE PESSIMISTIC
SCENARIO LOOKS LIKE.
IT TOO REPRESENTS A SIGNIFICANT
RECESSION AND A DROP IN
EMPLOYMENT.
WE ARE JUST NOW AT ABOUT PRE-
PANDEMIC LEVELS OF EMPLOYMENT.
THIS CHART IS MEASURING
RELATIVE TO THE PRE-PANDEMIC
LEVELS.
IF THE PESSIMISTIC SCENARIO
WERE TO EMERGE WE WOULD SEE
LAYOFFS AGAIN AND REGIONAL
EMPLOYMENT DROP.
CERTAINLY NOT AS BADLY AS
DURING THE PANDEMIC.
BUT NOTABLY AS WELL.
WE WOULD TAKE SEVERAL YEARS TO
RECOVER.
I SEE THERE IS A QUESTION.
>> HAPPY TO WAIT.
I'M SORRY.
>> NO PROBLEM.
>> I WANT TO STOP A MOMENT TO
TALK ABOUT THE RECOMMENDATION
WE MADE AMONG THE SCENARIOS AND
THE ACTIONS THAT THE FORECAST
COUNSEL TO ONE OF THE KEY
THINGS WE DO IS TO MAKE A
RECOMMENDATION ABOUT WHICH OF
THE SCENARIOS SHOULD FORM THE
BASIS FOR THE FORECAST.
AS I DESCRIBED, IT'S A
DIFFICULT CHOICE NOW WITH THE
PROBABILITIES ASSIGNED TO EACH
OF THE PESSIMISTIC AND BASELINE
ARE ESSENTIALLY THE SAME.
THAT SAID, AND IT'S THE REASON
I MADE THE POINT EARLIER, THE
BASELINE FORECAST DOES
INCORPORATE A LOT OF THE
CONCERNS THAT WE HAVE.
IT ANTICIPATED THE SECOND
QUARTERLY DECLINE IN GDP.
IT ANTICIPATED THE CURRENT
ACTIONS OF THE FED, WHICH WERE
REALLY REMARKABLE.
TWO THREE-QUARTER POINT
INCREASES BACK TO BACK.
SOMETHING WE HAVE NOT SEEN IN
DECADES.
BUT THE BASELINE FORECAST
ANTICIPATES FURTHER INCREASES
FROM THE FED.
IT ANTICIPATED THE CURRENT ONES
AND IS EXPECTING THEM GOING
FORWARD.
THERE HAS BEEN SOME GOOD NEWS.
BOTH ON THE JOB FRONT AND ON
THE STRONG EMPLOYMENT NUMBERS
FOR JULY.
THE INFLATION FIGURE DID DROP
RELATIVE TO JUNE.
IT'S ONLY ONE MONTH.
DANGEROUS TO ASSUME A TREND
FROM THAT.
OVERALL, THOSE FACTORS LET US
TO BE MORE COMFORTABLE WITH THE
BASELINE SCENARIO AND THAT WAS
OUR RECOMMENDATION TO THE
FORECAST COUNSEL.
THEY CONCURRED ON THE
RECOMMENDATION AT THEIR AUGUST
MEETING.
AS I MOVE NOW TO TALK ABOUT THE
REVENUES THEMSELVES, THESE ARE
CONSISTENT WITH THAT BASELINE
FORECAST THAT WE SHOWED YOU.
WHICH AGAIN HAS CONTINUED WITH
MORE MODEST GROWTH IN BOTH THE
REGIONAL AND NATIONAL ECONOMY.
BEFORE I DO THE SPECIFICS OF
THE REVENUE FIGURES I WANT TO
MAKE ONE MORE GENERAL POINT
ABOUT INFLATION AND THE IMPACT
ON GENERAL FUND REVENUES.
ONE MIGHT GENERALLY ASSUME THAT
PRICES ARE GOING UP AS
INFLATION TAKES EFFECT, THAT
OUR REVENUE SHOULD GROW WITH
IT.
MANY OF OUR TAXES LIKE SALES
TAX AND OTHER THINGS APPLIED TO
THE VALUE OF ACTIVITY. AND
THEREFORE OUR REVENUES WOULD BE
GOING UP WITH THEM.
WHAT'S TRICKY IS THAT IS NOT
GENERALLY TRUE OF ALL OF OUR
REVENUE STREAMS.
THIS PIE CHART IS DESIGNED TO
ILLUSTRATE THAT POINT.
THE THINGS IN SHADES OF YELLOW
ARE IN FACT REVENUES THAT DO
GENERALLY GROW WITH INFLATION.
I MENTIONED SALES. THOSE ARE
PERCENTAGE TAXES ON SALES AND
GENERAL BUSINESS ACTIVITY.
INFLATION ITSELF MAY HAVE AN
IMPACT ON TOTAL ACTIVITIES IN
THOSE AREAS.
OUR TAXES WILL GROW AS THE
LEVEL OF ACTIVITY GROWS.
AND PRIVATE UTILITIES ARE
GENERALLY INCREASING THEIR
RATES TO COVER THEIR COST.
IT'S REASONABLE TO EXPECT THAT
OUR TAXES ON THOSE, THOSE
SERVICES WILL ALSO GROW WITH
INFLATION.
BUT IT'S CRITICALLY IMPORTANT
TO UNDERSTAND THAT IT'S NOT
TRUE OF ALL OF OUR REVENUE
SOURCES.
IN PARTICULAR, PROPERTY TAX,
IT'S REPRESENTS ALMOST 25% OF
OUR REVENUES ARE CONSTRAINED TO
GROW AT WELL LESS THAN CURRENT
INFLATION.
PROPERTY TAX BY STATE LAW CAN
GROW BY 1%, PLUS THE VALUE OF
NEW CONSTRUCTION.
IN RECENT YEARS, MAYBE ABOUT 2
1/2%.
WHEN INFLATION WAS RUNNING AT
ABOUT 2 1/2%, THAT WAS OKAY.
WE WERE NOT LOSING GROUND.
AS INFLATION HAS SPIKED THAT
SHARE OF OUR REVENUE STREAM IS
LOSING GROUND.
AND IT WILL CONTINUE TO LOSE
GROUND AS LONG AS INFLATION
STAYS HIGH.
THE THINGS THAT ARE IN SHADES
OF GREEN ARE PORTIONS OF OUR
REVENUE STREAM.
THERE IS A MIX HERE.
SOME OF THESE THINGS DO
GENERALLY GO UP WITH INFLATION.
IT DEPENDS ON THE ACTIONS OF
THE CITY COUNCIL, AS WELL AS
OTHERS.
IN PARTICULAR THE TAX WILL
INCREASE AS RATES AND DEMAND
INCREASES.
IF EFFORTS ARE TAKEN TO PROTECT
RATEPAYERS BY KEEPING RATE
INCREASES BELOW INFLATION, AND
EFFECTIVE THAT CAN BE TO REDUCE
GENERAL FUND REVENUES.
IT'S NOT A REASON TO INCREASE
AS RATES BUT RATHER TO
UNDERSTAND WHAT IMPLICATIONS
ARE IN TERMS OF OUR OVERALL
REVENUE GROWTH.
SIMILARLY, THE LATER GREEN,
AGAIN THOSE ARE AREAS WHERE THE
CITY IS CHARGING FOLKS FOR ONE
SERVICE OR ANOTHER, AND THOSE
RATES ARE SET BY POLICY.
AGAIN, YOU MAY WANT TO BE
PROTECTING FOLKS OF THE IMPACT
OF INFLATION BY KEEPING THE IN
LOW.
TO A DEGREE THEY MAY NOT BE
KEEPING UP WITH INFLATION.
THE GENERAL POINT HERE IS THAT,
AS INFLATION GOES UP THERE IS A
STRUCTURAL ISSUE.
AND THE GENERAL FUND WILL NOT
INHERENTLY KEEP UP AND THE
PURCHASING POWER OF THE GENERAL
FUND WILL BE DECLINING.
AGAIN, THE CURRENT FORECAST
SAYS INFLATION WILL COME DOWN
QUICKLY.
HOPEFULLY THAT IS THE CASE.
IF NOT THIS COULD BECOME A
BIGGER ISSUE.
IT IS, BY THE WAY, AN
UNDERLYING CHALLENGE FOR KING
COUNTY.
THEY HAVE FACED A SERIES OF
BUDGET CHALLENGES OVER THE
YEARS.
THAT IS BECAUSE A GREATER SHARE
OF THEIR REVENUE IS COMING FROM
PROPERTY TAX AND THEY ARE NOT
KEEPING UP GENERALLY WITH
INFLATION.
IT'S A STRUCTURAL CHALLENGE FOR
THEM.
LET'S TALK ABOUT THE REVENUE
FORECAST AND HOW THINGS HAVE
CHANGED.
THIS IS A CHART THAT FOCUSES
JUST ON THIS YEAR, ON 2022.
HIGHLIGHTING THE BLUE VERSUS
NOT BLUE IS A DISTINCTION
BETWEEN THE REVENUE STREAMS IN
OUR FORECAST BY THE FORECAST
OFFICE VERSUS THE BUDGET
OFFICE.
I'M GOING TO SPEAK TO THE
THINGS IN BLUE AND THEN TURN IT
OVER TO DAVE AND ALEX TO TALK
ABOUT THINGS THAT ARE IN WHITE.
JUST IN TERMS OF READING THE
CHART, THE FIRST COLUMN OF
NUMBERS ARE THE 21 ACTUALS.
AS A REFERENCE POINT.
YOU CAN SEE HOW THINGS CHANGE
RELATIVE TO THAT.
THE SECOND COLUMN IS THE
ADOPTED BUDGET.
THE FORECASTS THAT WERE MADE IN
NOVEMBER.
OCTOBER AND NOVEMBER.
APRIL IS A REVISED FORECAST
FROM LAST TIME.
THE AUGUST FORECAST IS THE MOST
CURRENT.
THOSE OF THE NUMBERS WE ARE
SHOWING YOU TODAY.
AND THE FINAL COLUMN SHOWS YOU
THE CHANGE BETWEEN AUGUST AND
APRIL.
I'M JUST GOING TO WORK MY WAY
DOWN THIS CHART TO GIVE YOU A
HIGHLIGHT.
NEXT SLIDE WE WILL SHOW YOU 22
AND 23.
PROPERTY TAXES ARE GENERALLY
PREDICTABLE.
NO REAL CHANGE HERE.
THESE ARE IN THE THOUSANDS.
THAT'S 30 IN THE FINAL COLUMN.
IT REPRESENTS $30,000 OF
CHANGE.
THAT IS A MINOR, MINOR CHANGE
IN PROPERTY TAXES.
RETAIL SALES ARE UP.
BOTH REFLECTING THE IMPACT OF
INFLATION AND PRICE IS BEING
HIGHER OVERALL.
AS WE SHOWED YOU, THE LOCAL
ECONOMY DID BETTER IN THE NEAR
TERM THAN WE HAD ANTICIPATED.
A DECLINE IN BUSINESS AND
OCCUPATION TAX IS LESS A
REFLECTION OF ANYTHING CHANGING
THE ECONOMY AND MORE THAT THERE
HAVE BEEN CHANGES IN THE WAY
CERTAIN TAXPAYERS SHIFT FROM
MANUAL TO QUARTERLY PAYMENTS.
THIS MADE IT A LITTLE
CHALLENGING FOR US TO TRACK THE
BASELINE.
THIS IS REALLY US GETTING A
BETTER HANDLE ON THE BASELINE
REVENUES.
YOU WILL SEE THAT DOES RIPPLE
INTO THE FUTURE.
PRIVATE UTILITY SIDE.
A SMALL CHANGE. NATURAL GAS
PRICES HAVE PUSHED THAT UP
SOMEWHAT.
THE CABLE FORECAST IS UP
SLIGHTLY AS WELL.
I'M GOING TO SHIFT NOW AND TURN
THIS OVER TO DAVE AND ALEX TO
TALK ABOUT THESE OTHER REVENUE
STREAMS AND THAT I WILL RETURN
AT THE END TO TALK ABOUT THE
FINAL LINE, WHICH IS A
SIGNIFICANT ONE IN THIS TABLE.
>> THANK YOU.
GOOD MORNING.
IT'S STILL MORNING.
UTILITY TAXES, THE PUBLIC
UTILITY TAX, WATER, SEWAGE,
SOLID WASTE.
WE HAVE SEEN A SLIGHT DECLINE.
THE DECLINE IS REALLY A
COMBINATION OF FACTS FROM THE
VARIOUS UTILITY FUNDS.
BUT THE BIG MOVERS, SEATTLE
CITY LIGHT IS UP A BIT.
THEY'RE SELLING MORE RETAIL
ELECTRICITY THAN PREVIOUSLY
THOUGHT IN APRIL.
THE BIG MOVER IS WATERED DOWN
BECAUSE WE HAVE HAD SUCH A COOL
SPRING. WATER USAGE WAS LESS.
THEY HAVE REVISED THAT FORECAST
DOWN FOR THAT THAT CHANGE OF
ABOUT $1 MILLION.
OTHER CITY TAXES, THESE ARE
THINGS LIKE THE EXCISE TAX.
A TON OF TAXES -- SOLID WASTE.
HEATING, OIL, THINGS LIKE THIS.
YOU CAN SEE THAT THERE IS A
DECLINE OF ABOUT $2 MILLION.
THAT IS LARGELY COMPRISED OF
REDUCTIONS AND THE HEATING OIL
TAX IN APRIL.
WE HAD IT CARRYING ON BUT YOU
ALL HAD CHANGED IT SO THAT IT
WAS NOT EFFECTIVE UNTIL 2023.
WE REMOVED ABOUT $780,000 FROM
2022.
THE EXCISE TAXES WERE UP A BIT.
THE NET EFFECT THERE IS ABOUT A
$2 MILLION DECLINE OVERALL.
PARKING METERS ARE UP $1.5
MILLION.
THIS IS LARGELY DUE TO THE RATES
STILL CLIMBING.
STILL BEING MOVED FORWARD BY
THE SLOW BUT STEADY PROCESS OF
EVALUATING PAID OCCUPANCY AND
RAISING RATES IN THE AREAS AND
NEIGHBORHOODS WHERE IT IS
WARRANTED.
THEY HAVE A FEW OF THOSE RATE
EVALUATIONS SCHEDULED FOR THIS
YEAR.
AND THIS FORECAST INCLUDES
THOSE POTENTIAL INCREASES.
THIS IS NOT A PROJECTION. IT'S
AN ACTUAL FACT.
IT IS AT OR NEAR PRE-PANDEMIC
LEVELS.
THERE'S A LOT OF AREAS THAT
WILL BE INCREASED BECAUSE THEY
ARE ALREADY AT THOSE LEVELS.
THEY WILL GO FROM THERE.
COURT FINDS IS AN INTERESTING
AND COMPLICATED STORY.
CITATION VOLUMES FOR PARKING
CITATIONS ARE MAINTAINING.
THOSE ARE THE ONES WRITTEN BY
PARKING ENFORCEMENT OFFICERS.
THOSE ARE AT PRE-PANDEMIC
LEVELS OF ABOUT 550,000.
OTHER CITATIONS FOR DRIVING
WHILE INTOXICATED OR MOVING
VIOLATIONS, THOSE ARE DOWN.
THEY ARE GENERATED BY PATROL
OFFICERS.
AS YOU ARE AWARE, THERE IS
STAFFING AND PRIORITIZATION
QUESTIONS GOING ON THERE.
SO THOSE REVENUES ARE DOWN FROM
THOSE TYPES OF CITATIONS.
AND THEN WE HAD THE SITUATION
WITH THE VOIDING OF 200,000
CITATIONS AND THE REFUNDS BEING
GIVEN FOR THOSE.
THE COURT NUMBERS IN 2020 TO
REFLECT THAT REDUCTION.
AND THEN THERE ARE OTHER
FORECASTING ADJUSTMENTS THAT WE
HAVE MADE TO REFLECT PAYMENT,
EXPECTATIONS.
THERE IS AN ACCOUNTING
ADJUSTMENT OF SORTS OF ABOUT
$3.3 MILLION HERE.
BY COUNTING RULES, IT WAS
INCORPORATING IT INTO THE
REVENUES. AN AMOUNT THAT
REFLECTED A PORTION OF UNPAID
CITATIONS THAT WOULD BE IN
COLLECTIONS.
WE HAVE DETERMINED THAT IS NOT
ACTUALLY A CASH REVENUE.
WE ARE MOVING THAT FROM THE
FORECAST.
IT IS NOT A DOLLARS AVAILABLE
TO SPEND, IT'S A PROJECTION FOR
COUNTY PURPOSES.
IT WILL AFFECT THE BALANCE
SHEET BUT NOT THE CASH
AVAILABLE.
MOVING ON.
GRANTS.
THE $39.9 MILLION CHANGE THERE.
THIS IS LARGELY DUE TO US.
INCLUDING THE CARRYING FORWARD
AND THINGS LIKE THAT INTO THE
GRANT CATEGORY.
I DON'T KNOW IF YOU WANTED TO
SAY MORE ABOUT THAT IN YOUR
REMARKS.
YOU WILL SEE A LINE DOWN BELOW
THAT IS FOR GRANTS AND
LEGISLATIVE CHANGES OF ABOUT
40.7 MILLION IN APRIL.
THOSE ARE BEING ADDED TO APRIL
BECAUSE WE FAILED TO INCLUDE
THOSE CARRYFORWARD GRANTS INTO
THE APRIL NUMBER.
BUT THEY ARE INCLUDED IN THE
AUGUST NUMBERS.
TO TRY TO PRESENT AN APPLES TO
APPLES COMPARISON HERE.
WE HAVE THAT SORT OF PRESENTED
ON TWO DIFFERENT LINES.
THE BOTTOM LINE, RIGHT ABOVE
THE SHADED BLUE LINE, AND THEN
IN THE GRANT CATEGORY.
FUND BALANCE TRANSFERS. THIS IS
LARGELY DUE TO A $4.3 MILLION
CHANGE IN WHERE WE ARE POSTING
A TRANSFER.
THIS IS CRF MONEY.
IT WAS SCHEDULED TO BE BOOKED
INTO THE GENERAL FUND.
INSTEAD IT HAS BEEN BOOKED
DIRECTLY INTO THE HSD FUND.
LICENSING, PERMITS, AND OTHERS.
NOT MUCH CHANGE THERE.
I JUST EXPLAINED THE
CARRYFORWARD AND GRANT LINE
ITEM.
THEN, DO YOU WANT TO TALK ABOUT
PAYROLL EXPENSE TAX?
>> I HAVE THE ENTRY FOR PAYROLL
TAX, LATE 2021 PAYROLL TAX
PAYMENTS.
WHAT HAS HAPPENED HERE IS THE
PAYROLL TAX FIRST CAME INTO
EFFECT FOR 2021.
PAYMENTS WERE DUE IN JANUARY OF
THIS YEAR.
A ONE-TIME ANNUAL PAYMENT.
THIS YEAR FOLKS ARE MAKING
ORDERLY ESTIMATED PAYMENTS.
IT'S APPARENT THAT THE NUMBER
OF FIRMS WERE STRUGGLING TO
COME INTO COMPLIANCE AND
UNDERSTAND HOW THEY WERE
AFFECTED BY THE TAX.
WE HAVE CONTINUED TO GET
PAYMENTS FOR 2021 OBLIGATIONS
THROUGH THIS YEAR.
AND AS RECENTLY AS LAST MONTH.
EVEN THIS MONTH.
IN TOTAL WE HAVE COLLECTED AN
ADDITIONAL $42 MILLION IN 2021
PAYMENTS. AS A TECHNICAL
MATTER, AN ACCOUNTING MATTER,
THEY HAVE TO BE RECORDED AS
2022 REVENUES.
BECAUSE THEY COME IN AS LATE AS
THEY HAVE.
CITY ORDINANCE DICTATES THE
2021 PAYROLL EXPENSE REVENUES
GO INTO THE GENERAL FUND.
AS SHOWN HERE, GENERAL FUND
REVENUES.
GOING FORWARD, THE PAYROLL
EXPENSE TAX FOR 2022 AND BEYOND
ARE IN THEIR OWN SEPARATE FUND.
THESE ARE BEING DIRECTED INTO
THE GENERAL FUND.
FROM THAT PERSPECTIVE THERE ARE
ONE-TIME GENERAL FUND RESOURCES
. THE PAYROLL EXPENSE WILL SHOW
YOU THAT GOING FORWARD.
GOING FORWARD IT WILL BE INTO
THE GENERAL FUND.
THIS DOESN'T IMPLY, IN APRIL WE
TOLD YOU THE FINAL NUMBERS FOR
THE PAYROLL EXPENSE TAX AND
2021, ABOUT $248 MILLION.
WITH THIS IT TURNS OUT THE
ACTUAL TOTAL PAYMENTS FOR 2021
ARE CLOSER TO 200 OR JUST ABOVE
$290 MILLION.
UNDERSTANDING THAT IS THE BASE
IS AFFECTING OUR FORECAST.
YOU WILL SEE WE HAVE
SIGNIFICANT CONCERN AT THIS
POINT.
WE DON'T EXPECT TO MATCH THAT
FIGURE IN 2021 OR 2022.
WE WILL EXPLAIN WHY.
FOR THIS YEAR, THIS IS A VERY
SIGNIFICANT INCREASE IN
REVENUES ONE TIME.
AS YOU CAN SEE, ADDING UP THE
TOTAL ON THE FAR RIGHT COLUMN
HAS HELPED TO SIGNIFICANTLY
OFFSET SOME OF THE REDUCTIONS
WE ARE SEEING RELATIVE TO THE
APRIL FORECAST.
SO THAT'S 2022.
LOOKING AHEAD TO 2023 AND 2024.
LET ME ORIENT YOU ON THIS
TABLE.
THE FIRST COLUMN HERE OF
FIGURES IS THE REVISED FORECAST
FOR 2022 FOR THIS YEAR.
BUT THERE IS REFERENCE SEE CAN
SEE HOW THINGS CHANGE FROM YEAR
TO YEAR.
IN THE CENTER SECTION WE ARE
LOOKING AT THE 2023 FORECAST.
THE INITIAL FORECAST FROM APRIL.
THE SECOND IS THE REVISED FOR
THE NEW NUMBERS FOR 2023.
AND THEN AGAIN, THE DIFFERENCE
HERE ON THE RIGHT.
THAT CENTER PORTION.
ON THE RIGHT SIDE OF THE TABLE,
THE SAME INFORMATION FOR 2024.
THE APRIL FORECAST, THE REVISED
AUGUST FORECAST.
IT'S A RELATIVELY HIGH CLIP.
I WILL GO THROUGH AND TALK
ABOUT THE CHANGES FROM THE
FORECAST OFFICE PERSPECTIVE AND
THEN TURNED TO DAVE ON THE
OTHERS.
AGAIN, PROPERTY TAX, ONLY SMALL
CHANGES.
IT GROWS AT 1% PLUS ITS VALUE.
THOSE THINGS ARE NOT A VERY
STABLE FORECAST.
WE ARE SEEING SOMEWHAT HIGHER
NEW CONSTRUCTION THAN WHAT WE
HAD ANTICIPATED BECAUSE THE
CONCRETE STRIKE DID NOT HAVE AS
MUCH OF A DOWNWARD EFFECT AS WE
THOUGHT IT MIGHT.
RETAIL SALES ARE UP IN NOMINAL
TERMS FOR 2023.
2024, A REDUCTION RELATIVE TO
APRIL.
AS WE SAW THE LONGER-TERM
FORECAST SHOWED THAT THE ATOMIC
ECONOMY GROWS LESS THAN WE HAD
ANTICIPATED BACK IN APRIL.
THIS IS AN OCCUPATION TAX.
AGAIN, WE HAVE COME TO A BETTER
UNDERSTANDING OF WHAT THE BASE
IS.
IT'S CONSISTENT WITH WHAT WE
SAW BEFORE.
AND THE LOWER GROWTH IS
CONSISTENT WITH THE REVISED
REGIONAL FORECAST THAT SHOWS AN
OVERALL COOLING.
REVIT UTILITY TAXES, AGAIN, UP
SOMEWHAT.
NATURAL GAS IS A BIG PIECE OF
THAT.
ALSO CABLE IS HOLDING UP BETTER
THAN WE THOUGHT.
THE OVERALL PATTERNS THAT WE SEE
IN 2022 CONTINUE INTO 2023 AND
2024.
ACKNOWLEDGING SLOWER OVERALL
GROWTH.
DAVE?
>> THANK YOU.
I WOULD REITERATE THAT POINT
FOR THE FORECASTED AMOUNTS TO.
A LOT OF THOSE AMOUNTS, WE HAVE
ADJUSTED THE BASE IN 2022.
A LOT OF THE SAME FACTORS
APPLY.
THAT IS CARRYING ACROSS.
THE ONE I WOULD LIKE TO POINT
OUT IS LICENSES, PERMITS, AND
INTEREST INCOME.
THAT IS A DROP OF ABOUT $3.3
MILLION EACH YEAR.
THAT IS LARGELY DUE TO CHANGES
IN BUSINESS LICENSE EXPECTATIONS
. THEN THERE IS A REDUCTION IN
EMERGENCY SERVICES
REIMBURSEMENTS COMING TO YOU
WAS THE POLICE DEPARTMENT NOW,
I'M BLANKING ON THE NAME.
THAT'S A DECISION THEY ARE
MAKING ABOUT HOW TO USE THOSE
RESOURCES.
THERE IS A REDUCTION THERE.
THERE ARE SOME LESSER
ADJUSTMENTS AS WELL.
ASSUMED COMMERCIAL PARKING
LICENSES AND THEN A SLIGHT
DECLINE IN INTEREST EARNINGS
BASED ON EXPECTATIONS OF
LOWERING CASH BALANCES FOR THE
GENERAL FUND.
>> I'M GOING TO ENCOURAGE US TO
GET TO PAGES 18 AND 19 SO THAT
WE CAN GET INTO QUESTIONS.
THAT WILL LEAVE US WITH ABOUT
45 MINUTES FOR THE LAST
PRESENTATION AS WELL.
I WANT TO THINK THE FOLKS FROM
THE CITY BUDGET OFFICE AS WELL
WHO HAVE OFFERED TO COME TO OUR
NEXT MEETING ON SEPTEMBER 7th
TO DO A REPORT OUT ON OUR
AMERICAN RESCUE PLAN, SEATTLE
RESCUE PLAN EXPENSES.
WE WILL ADD THAT ITEM TO OUR
AGENDA FOR SEPTEMBER 7th, WHICH
JUST LEAVES US WITH CONCLUDING
THIS ITEM, AGENDA ITEM NUMBER
FOUR.
WE HAVE SPENT THE LAST 45
MINUTES ON THE AGENDA NUMBER
FIVE.
>> THIS IS A REDUCTION OF ABOUT
16 1/2 MILLION FOR THE FORECAST
AND JUST OVER 11 MILLION FOR
THE 2024 FORECAST.
THE ONLY OTHER POINT I WOULD
MAKE ABOUT THIS GRAPHIC IS THE
PERCENTAGE CHANGE AT THE VERY
BOTTOM.
ANNUAL GROWTH.
JUST HIGHLIGHTING THAT RELATIVE
TO 2022 2023 WE ACTUALLY HAD A
REDUCTION IN RESOURCES IN
GENERAL.
IT IS PRINCIPALLY THIS ONE.
THE FUND BALANCE TRANSFER.
THE 2022 BUDGET RELIES
SIGNIFICANTLY ON TRANSFERS.
THAT'S NOT GOING TO NECESSARILY
CONTINUE INTO 2023.
IT IS CREATING SOME CHALLENGES.
SHIFT REALLY QUICK HERE TO TALK
ABOUT THE OTHER REVENUES THAT
WE HAVE FORECASTED THAT ARE NOT
IN THE GENERAL FUND, BOTH WHICH
ARE SIGNIFICANT.
THE LARGEST OF THOSE IS THE
PAYROLL EXPENSE TAX.
I WILL SPEND A LITTLE BIT OF
TIME HERE.
AS I INDICATED, THE 2021 ACTUALS
, AS WE UNDERSTOOD THEM AT THE
TIME, OR 248 MILLION.
AS INDICATED THAT IS AN
ADDITIONAL $42 MILLION PAID IN.
THE BASE FOR THE PAYROLL TAX,
AS WE UNDERSTAND FOR 2021, IS
$290 MILLION.
THE FORECAST THAT WE HAD FOR
2022 WAS LESS THAN THAT.
IT WAS 277 MILLION.
BUT THAT WAS A FORECAST THAT WAS
BASED ON ALMOST NO INFORMATION
AT THE TIME.
WE KNEW THE NUMBERS.
WE HAD SEEN ANY PAYMENTS FOR
2022.
WE HAVE NOW SEEN QUARTERLY
PAYMENTS FROM THE FIRST AND
SECOND QUARTER.
THOSE ARE JUST NOT KEEPING PACE
WITH THE 2021 FIGURES.
THE FORECAST THAT WE HAD FOR
2022 IS ACTUALLY SOMEWHAT HIGHER
THAN THE REVISED FORECAST.
SOMEWHAT HIGHER THAN WHAT WE
HAD IN APRIL.
BUT WE GOT THERE IN A VERY
DIFFERENT WAY.
WE NOW UNDERSTAND THAT TO THE
BASE IS BIGGER THAN WE THOUGHT
BUT THE PAYMENTS FOR 2022 WILL
BE LESS THAN THEY WERE IN 2021.
IN A MINUTE WE WILL TALK ABOUT
WHY THAT IS THE CASE.
OTHERWISE THE ADMISSIONS TAX,
ONLY A VERY SMALL CHANGE.
REAL ESTATE EXCISE TAX, GOOD
PERFORMANCE IN THE FIRST HALF.
UPPING THAT FORECAST FOR THE
REST OF THIS YEAR.
AND THEN THE SALES TAX JUST
FOLLOWS THE OVERALL SALES TAX
FORECAST.
I'M GOING TO DO THESE REAL
QUICK.
MINOR CHANGES JUST BASED ON
CURRENT PERFORMANCE.
THE PAYROLL EXPENSE TAX.
YOU WILL SEE THAT THE FORECAST
IS SOMEWHAT LOWER THAN WHAT WE
SHOWED YOU IN APRIL.
WE ARE NOT GOING TO HIT THE
SAME LEVEL OF ACTIVITY IN 2021,
GIVEN THE FORECAST WE HAVE SEEN
WE ARE EXPECTING LESS JOB GROWTH
IN THE SECTORS THAT ARE
PRINCIPALLY RESPONSIBLE.
WE ARE EXPECTING SOMEWHAT
SLOWER GROWTH.
THAT YOUR IS RELATIVELY SMALL
BUT THAT'S WHAT DRIVING.
THE REAL ESTATE EXCISE TAX,
JUST JUMPING AHEAD TO AN AREA
OF SIGNIFICANT CHANGE.
WE SAW STRONG PERFORMANCE IN
2022.
WE EXPECT LEFT NET REVENUE IN
2023 AND 2024 AS INTEREST RATES
START TO COOL THE REAL ESTATE
MARKET.
WE ARE STILL NOT ANTICIPATING
TO REACH THE CURRENT LEVELS.
I THINK THE COMMERCIAL PARKING
TAX, IN TERMS OF OTHER CHANGES.
>> COMMERCIAL PARKING TAX IS
PRIMARILY REFLECTING WHAT IS
GOING ON WITH THE NEW REGIONAL
ECONOMIC OUTLOOK, WHICH HAS
BEEN REVISED DOWN FROM APRIL,
PARTICULARLY STARTING IN 2023.
WE ARE EXPECTING THAT ACTIVITY
TO RETURN TO PRE-PANDEMIC LEVELS
, JUST AT A SLOWER PACE.
>> AS LAST POINT, SOME OTHER
FURTHER COMMENTS ABOUT THE
PAYROLL EXPENSE TAX AND WHY IT
IS FORECASTING LESS REVENUE IN
2022 THEN WE SAW IN 2021.
IT WAS A BASE OF $290 MILLION.
WE ARE FORECASTING $278 MILLION
FOR NEXT YEAR.
ONE OF THE REASONS FOR THAT,
AGAIN WE ARE SEEING LOWER
PAYMENTS FOR THE FIRST TWO
QUARTERS THIS YEAR.
WE THINK A SIGNIFICANT
EXPEDITION IF THAT IS THE STOCK
VALUES OF THE LARGE TECH
COMPANIES DECLINING.
A LOT OF THE COMPENSATION THAT
IS PAID TO FOLKS IN THESE
COMPANIES IS BASED ON STOCK
GRANTS. THE VALUE OF THOSE
GRANTS ARE DECLINING.
ANOTHER ISSUE THAT WE ARE
MONITORING IS THE WAY PEOPLE
SIGN WORKERS TO OFFICES AND THE
IMPACT OF WORK FROM HOME, WHICH
ALSO REDUCES TAX OBLIGATIONS.
WE SPENT A LOT OF TIME THINKING
ABOUT THIS.
WE DON'T HAVE A TON OF DATA.
THIS FORECAST IS ONE THAT IS
MORE A JUDGMENT CALL THAT IT IS
BASED ON HARD DATA.
>> APOLOGIES FOR THE FEEDBACK.
COUNSELOR HERBOLD, YOU HAD YOUR
HAND RAISED.
PLEASE GO AHEAD .
>> THANK YOU.
A QUESTION ABOUT THE CONTINUED
USE OF THE BASELINE ECONOMIC
SCENARIO, AS WE HEARD IN YOUR
REPORT.
THE PROBABILITY OF THE
PESSIMISTIC FORECAST HAS
INCREASED FROM A 35% PROBABILITY
IN APRIL TO A 45% PROBABILITY
JUST A FEW SHORT MONTHS LATER
IN AUGUST.
DESPITE THAT SHIFT THE FORECAST
CONTINUES TO USE THE BASELINE
FORECAST.
YOU GUYS ARE THE EXPERTS IN
THIS WORK.
I PURSUE THIS LINE OF
QUESTIONING IN THE PAST.
YOUR FORECASTING HAS BEEN ON
THE MARK.
I'M JUST WONDERING, FROM A
MATTER OF PRACTICE, IS THERE
PERCENTAGE OF PROBABILITY THAT
FORECASTING EXPERTS USE TO SHIFT
FROM A BASELINE TO A PESSIMISTIC
? IS IT 1% OVER 50%?
>> REALLY GOOD QUESTION.
THE WAY THE NATIONAL FORECAST
WORKS, THE PESSIMISTIC FORECAST
WILL NEVER BE ABOVE 51.
IT WOULD THEN BECOME THE
BASELINE.
BY CONSTRUCT.
>> I DIDN'T UNDERSTAND THAT.
>> WE HAVE EMPLOYED THE
PESSIMISTIC FORECAST IN THE PAST
, IN PARTICULAR, MOST RECENTLY
IN THE BEGINNING OF 2020.
WHEN THE PANDEMIC HIT.
AT THE TIME THERE WERE TWO
PARTICULAR REASONS FOR THAT.
ONE IS, WE WERE HIT FIRST IF
YOU RECALL.
THESE WERE NOT REFLECTING OUR
RISKS.
WE WERE IN A DIFFERENT
SITUATION.
IN RETROSPECT WE ALSO RESPONDED
MORE AGGRESSIVELY.
THAT WAS A REASON TO USE OUR
PESSIMISTIC FORECAST FROM A
PUBLIC HEALTH PERSPECTIVE.
IT WAS HARD TO KNOW THEN.
THE OTHER CONCERN WAS THAT THE
COMPONENTS OF OUR ECONOMY WERE
POTENTIALLY MORE IMPACTED BY
THE PANDEMIC THAN THE NATION AS
A WHOLE.
THE IDEA WAS THAT THE NATIONAL
BASELINE WAS NOT REFLECTIVE OF
OUR RISKS THEN.
WE DON'T HAVE THAT SENSE NOW.
WE ARE FEELING THAT OUR
EXPOSURE WAS NOT UNLIKE THAT OF
THE NATION.
I HARP ON IT EARLIER.
THE BASELINE FORECAST IS ALSO
NOT A ROSY ONE.
IT IS ANTICIPATED. IF THEY HAVE
NOT ANTICIPATED THE GDP
DECLINE, IF THEY HADN'T
ANTICIPATED THE RATE INCREASES,
SO THE BASELINE WAS NOT
REFLECTIVE OF CURRENT
CONDITIONS.
THAT WOULD HAVE BEEN A REASON
úTO SHIFT AWAY.
BUT IT IS REFLECTIVE. A
DISCUSSION RELATED TO THIS THAT
WE HAD WITH THE FORECAST
COUNSEL IS THAT WE ARE GOING TO
CONTINUE TO WATCH THIS.
WE ARE FOR SURE GOING TO GIVE
YOU AN UPDATE OF THE MEETING IN
NOVEMBER, LATE OCTOBER OR
BEGINNING OF NOVEMBER.
BUT IF THINGS WERE TO CHANGE
DRAMATICALLY AND THE
IMPLICATION WAS A DOWNWARD
REVISION IN THE FORECAST,
THAT'S SOMETHING THAT WE MIGHT
WANT TO BRING TO YOU EARLIER.
AS A DELIBERATIVE BODY TO THE
CITY COUNCIL AND ENGAGE IN
DISCUSSION TO POTENTIALLY
RESPOND AS YOU ENGAGE IN THE
BUDGET PROCESS AND NOT HAVE TO
MAKE CHANGES AT THE VERY LAST
IF YOU WILL.
WE ARE GOING TO CONTINUE TO
KEEP AN EYE ON THAT.
IF THINGS DETERIORATE FURTHER
WE WILL REACH BACK BEFORE
NOVEMBER AND WORK OUT SOME
TIMELINES ABOUT WHEN WE CAN
BEGIN SOME OF THAT WORK IN MID
SEPTEMBER OR EARLY OCTOBER IF
THAT PROVES APPROPRIATE.
RESPONDING TO EXACTLY THE
QUESTION AND SCENARIO THAT YOU
ARE CONCERNED ABOUT.
>> THANK YOU.
>> THANK YOU VERY MUCH.
I AM NOT SEEING ADDITIONAL
QUESTIONS.
I KNOW THIS IS JUST THE
PRECURSOR, THE GROUNDING FOR
THE NEXT ITEM ON THE AGENDA.
I WANT TO THANK DIRECTOR NOBLE
AND MY COLLEAGUES AS WELL.
THIS IS THE CONVERSATION THAT
HAS REALLY FOCUSED ON THE
REVENUE PROJECTIONS.
THE NEXT ITEM ON OUR AGENDA IS
THE OVERALL HEALTH OF THE
GENERAL FUND.
AND A PREVIEW FOR THE FALL
BUDGET WHERE WE HAVE THE
GENERAL FUND FINANCIAL PLAN
ITEM ON OUR AGENDA.
SO PLEASE KEEP YOUR QUESTIONS
FOR DIRECTOR NOBLE FOCUSED ON
THE REVENUE PROJECTIONS ONLY.
I SEE ONE MORE QUESTION FROM
COUNCILMEMBER PEDERSEN BEFORE
WE MOVE ON.
>> THANK YOU, COUNCILMEMBER
MOSQUEDA.
AND THANK YOU FOR THIS
PRESENTATION.
I APPRECIATE YOU BREAKING OUT
THE RECENT HISTORY OF THE NEW
JUMPSTART PAYROLL TAX AND THE
DIFFERENCE IN WHAT WAS PART OF
THE GENERAL FUND WHEN WE
CREATED A SEPARATE FUND FOR THE
PAYROLL TAX. IN TERMS OF WHAT
WOULD BE THE BASELINE FOR THAT
PAYROLL TAX, I GUESS WHAT I'M
LOOKING TO IS THE EXPECTATION.
I JUST WANT TO CONFIRM MY
NUMBERS HERE.
2022 ADOPTED BUDGET.
SO WE ADOPTED THIS IN NOVEMBER.
THAT WAS ABOUT $233 MILLION WAS
WHAT WE ADOPTED LAST NOVEMBER
AS OUR ESTIMATE FOR THE
JUMPSTART REVENUES.
IS THAT CORRECT?
233 MILLION.
>> I HAD $234 MILLION.
>> I WAS TRYING TO GROUND MYSELF
IN THE EXPECTATIONS OF HOW MUCH
WE WOULD BE GETTING.
IT SOUNDS LIKE WE ARE EXCEEDING
THAT. EXCEEDING IT FOR
DIFFERENT REASONS.
THERE'S GOOD NEWS ON THAT FRONT
AT LEAST.
>> 2021 OUTPERFORMED OUR
FORECAST.
CERTAINLY IT WAS GOOD NEWS. THE
EXTRA EFFORT IS TO EXPLAIN WHY
WE ARE CONVINCED THAT WILL
CONTINUE INTO THE FUTURE. EVEN
THIS YEAR'S REVENUES WON'T
MATCH LAST YEAR'S.
THE KEY DATA POINT FOR THAT IS
THAT HALFWAY THROUGH THE YEAR
WE ARE SEEING THAT IT IS ON A
PACE TO MATCH THE PAYMENTS FROM
LAST YEAR AND WE ARE TRYING TO
UNDERSTAND WHY THAT IS THE CASE
WHAT WE SEE IS STOCK VALUE
CHANGE.
W ALSO SEE A SHIFT TO A MODEL
WHERE PEOPLE ARE ONLY REPORTING
THE AVERAGE WORK IN THE CITY
AND NOT ASSUMING THE REAL
EMPLOYMENT IS HAPPENING IN THE
CITY.
>> YOUR ESTIMATE FOR 2023 IS
HIGHER THAN $223 MILLION.
ADOPTED.
>> WE WERE OFF ON THE BASE.
WE ARE EXPECTED TO GROW TO 230
MILLION THIS YEAR.
WE WERE EXPECTING IT TO FALL
SLIGHTLY THIS YEAR AND THEN
MODESTLY GROW AFTER THAT.
WE ALSO KNOW THAT WE DON'T HAVE
A GOOD HANDLE ON THIS REVENUE
STREAM.
FOR INSTANCE, THE STOCK VALUE
IS DRIVING COMPENSATION.
REALLY GOOD AT PREDICTING STOCK
VALUES.
THEY MIGHT HAVE A DIFFERENT
JOB.
THAT'S GOING TO BE A CHALLENGE
GOING FORWARD.
AGAIN, WITH EVERY YEAR AND
EVERY QUARTER WE GAIN A BETTER
UNDERSTANDING OF HOW THIS
WORKS.
>> THIS IS A REALLY GOOD SETTING
. YOUR POINT IS WELL TAKEN.
I THINK IT WILL BE A GOOD SEGUE
INTO THE UPCOMING PRESENTATION
FROM CENTRAL STAFF AS WELL.
I WANT TO ENCOURAGE FOLKS. IF
THEY WOULD LIKE ADDITIONAL
DETAILS WE DID WALK THROUGH
THIS IN ABOUT 2 1/2 HOURS IN
OUR REVENUE FORECAST COUNCIL
MEETING LAST MONDAY.
SO THAT INFORMATION IS ALSO
ARCHIVED ON THE SEATTLE CHANNEL
FROM THE EIGHTH OF AUGUST.
THANK YOU VERY MUCH TO THE
OFFICE OF ECONOMIC REVENUE AND
FORECAST. THIS IS A HELPFUL
GROUND SETTING AS WE MOVE ON TO
THE NEXT AGENDA ITEM.
MADAM CLERK, PLEASE READ ITEM
NUMBER FIVE AND THE RECORD.
>> AGENDA ITEM NUMBER FIVE.
GENERAL FUND FINANCIAL PLAN
UPDATE FOR BRIEFING AND
DISCUSSION.
>> THANK YOU SO MUCH, MADAM
>> OFFICE OF ECONOMIC REVENUE
FORECAST.
PAINTED A PRETTY GOOD PICTURE
FROM APRIL AND AUGUST FORECAST.
THE CHANGES IN THE FORECAST ARE
GOING TO HAVE A SIGNIFICANT
IMPACT ON THE AVAILABLE REVENUE
TO THE CITY.
AS THE MAYOR CONSIDERS DRAFTING
HIS BUDGET AND TRANSMITTING
THAT TO COUNCIL, WE ARE VERY
INTERESTED IN WORKING TOGETHER
TO MAKE SURE THAT WE HAVE A
SOLID FINANCIAL PLAN TO ADDRESS
THE GROWING NEEDS IN THIS CITY.
AND ALSO TO MAKE SURE THAT WE
HAVE THE REVENUE TO FULFILL
THOSE NEEDS.
COLLEAGUES, WE'RE ABOUT TO SEE
AN OVERALL PICTURE OF HOW OUR
BUDGET, OVER THE COURSE OF THE
NEXT SEVERAL YEARS, WILL WORK
WITH THE ASSUMPTIONS FROM THE
REVENUE FORECAST INFORMATION
THAT WAS PRESENTED LAST WEEK.
AGAIN, I WANT TO THANK, NOT
ONLY OFFICE OF REVENUE FORECAST
BUT ALSO THE CITY BUDGET'S
OFFICE AND OUR OWN CENTRAL
STAFF WHO HAVE BEEN DILIGENTLY
WORKING OVER THE LAST WEEK AND
A HALF TO LOOK AT THE FORECAST
INFORMATION, FACTOR IN OUR
EXPENSES FROM THE CITY, AND
LOOK TOWARDS HOW WE'RE CREATING
A MORE STANNABLE, STABLE AND
TRANSPARENT BUDGET.
SO TODAY'S CONVERSATION WILL
HAVE AN OPPORTUNITY TO ASK
QUESTIONS AT THE END OF THE
PRESENTATION, AND I AM GOING TO
ALSO SAVE MY COMMENTS ABOUT HOW
I AM LOOKING AT VARIOUS
SOLUTIONS TO ADDRESSING THE
BUDGET DEFICIT, THAT IS GOING
TO BE OUTLINED HERE IN THE
CENTRAL STAFF'S PRESENTATION,
AFTER THEY CONCLUDE THEIR
COMMENTS.
WE KNOW THAT THE LOOMING BUDGET
DISCUSSION THAT WE WILL HAVE IN
JUST OVER A MONTH FROM NOW, IS
THE BIGGEST ISSUE MANY OF US
ARE WORKING ON COLLECTIVELY
ADDRESSING TO MAKE SURE THAT WE
CLOSE THIS GAP AND PROVIDE
CRITICAL SERVICES TO OUR
COMMUNITY RESIDENTS, SMALL
BUSINESS WORKERS AND TO INN
SURE THAT WE'RE INVESTING IN
THE GROWTH OF OUR LOCAL ECONOMY
AS WELL.
BECAUSE THE LEGISLATIVE BRANCH
HOLDS THE PURSE, WE HAVE THE
FINAL SAY ON THE PROPOSED
BUDGET FOR THE UPCOMING YEARS.
WE WILL ALSO BE VERY INTERESTED
IN NOT ONLY THE PRESENTATION IN
FRONT OF US TODAY.
BUT I WANT TO MAKE SURE THAT WE
ARE SETTING AN IMPORTANT COURSE
FOR HOW WE CONTINUE TO TRY TO
ADDRESS THIS, IN THE MOST
HUMANE AND HUMANITARIAN WAY
POSSIBLE TO MAKE SURE WE NOT
ONLY PREVENT AGAINST AUSTERITY,
BUT MAKE KEYINVESTMENT INTO OUR
ECONOMY, WORKERS AND SMALL
BUSINESSES.
WITH THAT, IF I TURN IT OVER TO
CENTRAL STAFF TO WALK US
THROUGH THE FINANCIAL PLAN.
THIS IS A GENERAL FUND REVENUE
UPDATE, AND THE FINANCIAL PLAN,
AS PRESENTED BY OUR CITY BUDGET
OFFICE AND CENTRAL
STAFF.
STOW ALY PENUCCI ARE HERE NOW.
AND WE ALSO HAVE JULIE DINGLEY
FOR MAYBE INPUT AS WELL.
AND ANY QUESTIONS FOLKS HAVE.
PLEASE GO AHEAD, TOM AND ALLY.
>> THANK YOU.
I'M JUST GOING TO GO SHARE MY
SCREEN.
FOR YOU SEEING MY PRESENTATION.
>> WE ARE.
>> GREAT.
GOOD MORNING.
I'M AWEATHER Y PENUCCI AND
JOINED BY MY COLLEAGUES.
I'M GOING TO JUMP IN AND MAKE
SURE WE HAVE TIME FOR
DISCUSSION SO I'LL LET THEM
INTRODUCE THEMSELVES WHEN WE GO
INTO THE DISCUSSION.
I WILL BRIEFLY WALK THROUGH
WHAT WE'RE GOING TO COVER
TODAY.
AND THEN TURN IT OVER TO TOM
MIKESELL FOR DETAILS AND THEN
FOR THE CONSIDERATION OF SOME
POTENTIAL STRATEGY.
>> GREAT.
AND THANK YOU VERY MUCH.
JUST AS A HINDER.
I MENTIONED THIS AT THE
MEETING.
FOR THIS ITEM, YOU CAN FIND
BOTH THE POWER POINT
PRESENTATION AND THE CENTRAL
STAFF MEMO, BY GOING TO THE
FINANCE AND HOUSING COMES
AGENDA LINK.
CLICK ON MEETING DETAILS, AND
YOU CAN FIND LINKS UNDER ITEM
NUMBER 5'S SUPPORTING DOCUMENTS
WHEN YOU CLICK ON THAT AGENDA
ITEMS.
IF ANY MEMBERS OF THE COMMUNITY
ARE INTERESTED IN THAT, WE WILL
TRY TO SEND YOU THE DIRECT LINK
BUT YOU CAN ALSO GO TO MEETING
DETAILS.
CLICK ITEM 5. STOZ WE WILL
PRESENT AN UPDATED FINANCIAL
PLAN FOR GENERAL FUND
TRANSMITTAL OF THE MAYOR'S
PROPOSED 23 BUDGET THAT WILL BE
SUBJECT TO THE COUNCIL.
THIS UPDATE REFLECTS THE
GENERAL FUND WHICH WAS
PRESENTED BY THE CITY BUDGET
OFFICE.
AND UPDATED EXPENDITURE
INFORMATION THAT INCLUDES WHAT
IS ESTIMATED TO BE GENERAL FUND
EXPENDITURES, BASED ON THE
FUTURE ESTIMATED COST OF
CONTINUING THE ONGOING PROGRAMS
THAT WERE FUNDED IN THE 2022
ADOPTED BUDGET, AS WELL AS
CHANGES TO THE PLANNING RESERVE
ASSUMPTIONS, PROVIDED BY THE
CITY BUDGET OFFICE.
AND ANY SUPPLEMENTAL
ADJUSTMENTS MADE SINCE THE MAY
4th DISCUSSION.
AS THE CHAIR DESCRIBED AND YOU
HEARD IN THE PREVIOUS AGENDA
ITEMS AND WE'LL SEE IN THE
SUBSCENT SLIDES.
BOTH THE MAYOR AND COUNCIL ARE
PREPARING FOR UNCERTAINTIES
ABOUT THE FUTURE.
AS NOTED, THE PLAN PRESENTED
TODAY, SERVES AS THE STARTING
POINT FOR THE MAYOR.
AND WE LOOK FORWARD TO WORKING
WITH CENTRAL STAFF TO DETERMINE
IF IT IS CONSISTENT WITH THE
LEGISLATION.
AND IF NOT, WORK WITH YOU ALL
TO DEVELOP A FINAL CITY BUDGET
FOR 2023 THAT REFLECTS YOUR
PRIORITIES.
WITH THAT, I'LL TURN IT OVER TO
TOM TO WALK THROUGH THIS IN MORE
>> THANK YOU, I'M TOM MIKESELL
WITH YOUR CENTRAL STAFF.
AND GOOD MORNING TO YOU,
FINANCE AND HOUSING COMMENT
MEMBERS AS WELL.
ALY ALREADY GAVE THIS BROAD
SCENE.
SO I'LL DIVE INTO THE UPDATE
PROJECT.
THE PLAN WE'LL SHARE TODAY
INCLUDES EXPEND DUR GROWTH IN
2022 AND 2023.
ON CONTINUING 2022 ADOPTED
BUDGET SERVICE.
THE PRESENTATION SHOWS THIS
INFORMATION DIFFERENTLY THAN
HOW CVO CASTS IT IN THEIR FINAL
PLANS THAT THEY INCLUDE IN THE
BUDGET.
HOWEVER, THE UNDERLYING DATA
AND ASSUMPTIONS ARE THE SAME AS
WHAT CBO WAS USING T. DOES
INCLUDE BASELINE GROWTH AND
EXTEND TURS TO CONTINUE IN 2022
SERVICES.
BUT IT'S REALLY THE STARTING
POINT FOR POLICY PROPOSALS THAT
MAY BE CONSIDERED IN THE
MAYOR'S PROPOSED BALANCED
BUDGET COMING IN SEPTEMBER.
NEXT SLIDE PLEASE.
SO I GUESS TO REITERATE, THESE
NUMBERS DO NOT INCLUDE ANY
POLICIES OR PROGRAMS THAT WERE
ADOPTED ATS AS ONE TIME IN
2022.
SO THEY WERE ONLY EXPECTED TO
BEGIN AND END IN THE CURRENT
YEAR.
THEY AREN'T INCLUDED IN ANY
POLICY-RELATED ADDITIONS.
BUT THEY ALSO DO NOT REPRESENT
A FOREGONE CONCLUSION.
COUNCIL HAS JURISDICTION OVER
ALL ELEMENTS, INCLUDING THE
CITY BASELINE.
SO WHILE WE'RE PAST THESE AS
SORT OF A PROJECTION OF A BASE,
IT'S JUST AN IMPORTANT TO NOTE
AS A CAVEAT THAT ALL ELEMENTS,
INCLUDING THOSE ELEMENTS THAT
WE'RE DISCUSSING TODAY ARE PART
OF THE BALANCING PICTURE AND
PART OF THE BUDGET THAT WILL BE
PRESENTED IN THE FALL.
BUT WITH THAT BEING SAID, THIS
IS THE FINAL UPDATE OF KIND OF
THE ONGOING 2022 SERVICE COST
PROJECTION THAT WE AM BE ABLE
TO -- WE WILL PRESENT PRIOR TO
RECEIVING THE MAYOR'S PROPOSED
BUDGET IN SEPTEMBER.
SO NEXT SLIDE PLEASE.
SO THESE NEXT COUPLE OF SLIDES
ARE LIKE GRAPHICAL
REPRESENTATION THAT WAS
DISCUSSED IN MAY.
WHEN WE FIRST LOOKED AT THE
GENERAL FUND FINANCIAL PLAN.
SO NOW WE'RE INCLUDING GRAPHS.
KIND OF CATCHING UP WITH THE
20th CENTURY.
SO THIS SHOWS IN THESE BASIC
LINES SHOWING IN RED, THE
EXPENDITURE PROJECTION AND IN
GREEN, THE REVENUE PROJECTION
THAT WE LOOKED AT IN MAY.
THE KEY PIECE OF DETAIL HERE IS
THE OPERATING GAP.
SO THAT'S THE DIFFERENCE
BETWEEN THE EXPENDITURE
PROJECTION AND THE REVENUES
THAT ARE PROJECTED TO BE
AVAILABLE TO SUPPORT THEM NEXT
YEAR AND IN FUTURE YEARS IN THE
PLAN.
SO BACK IN MAY, ONE OF THE
HEADLINE NUMBERS OF THIS
OPERATING GAP WAS $117 MILLION
DIFFERENCE IN OF BETWEEN
REVENUES AND EXPENDITURES IN
2023.
SOALSO BASED ON THAT
INFORMATION.
THE GAP WAS PROJECTED TO NARROW
IN THE FUTURE.
AS YOU CAN SEE BY THESE KIND OF
CONVERGING LINES BY 2026.
WHERE THE $117 MILLION SHRINKS
TO A LOWER NUMBER.
UNFORTUNATELY, UPDATES THAT
WE'LL TALK ABOUT IN UPCOMING
SLIDES, WE'LL SHOW THAT THAT
GAP WIDENS.
BUT THAT'S WHAT WE'RE LOOKING
AT WITH THOSE MAIN NUMBERS.
NEXT SLIDE.
SO THE GENERAL FUND ENDING
UNRESERVED FUND BALANCE IS KIND
OF THE NEXT CRITICAL METRIC IN
CONSIDERING ADOPTED BUDGET.
ESSENTIALLY, THIS SATURDAY
NUMBER THAT DETERMINES WHETHER
A BUDGET IS BALANCED OR NOT.
SO THE ENDING UNRESERVED
BALANCE FOR LEGALLY ADOPTED
BALANCE HAS TO BE ZERO OR
HIGHER.
SO BACK IN MAY, THE PRODUCTION
FOR 2023 WAS $30 MILLION
NEGATIVE ENDING RESERVE
BALANCE.
AND THAT NUMBER GREW TO $249
MILLION NEGATIVE BY 2026.
AND THIS IS ENTIRELY LOSES OF
THE, WHAT WAS HAPPENING WITH
PROJECTED REVENUES AND
EXPENDITURES, AS SHOWN IN THE
PRIOR SLIDES.
SO IN OTHER WORDS, THE
UNRESERVED FUND BALANCE GOT
WORSE IN FUTURE YEARS, BECAUSE
THERE WAS AN ONGOING GAP
BETWEEN FUTURES AND REVENUE
EXPENDITURES.
THAT'S THE RECAP OF MAY.
NEXT COUPLE OF SLIDES, I'M
GOING TO INCLUDE SOME OF THE
NEW DATA THAT WE HAVE REFERRED,
FROM VARIOUS PARTNERS, TO
UPDATE THESE PROJECTIONS WITH
MORE RECENT DATA.
SO THIS SLIDE IS REALLY JUST
RECAPTURING ALL OF THE WORK IN
DETAIL THAT WAS JUST PRESENTED
TO YOU IN THE PRIOR AGENDA ITEM
FROM THE FORECAST OFFICE AND
THE CITY BUDGET OFFICE.
AND IT JUST PLAY LAYERS IN AND
SHOWS GRAPHICALLY THE CHANGES
TO, FROM THE MANY FORECASTS IN
THE LIGHTER BLUE LINE.
AND THE NOW AUGUST FORECAST IN
THE DARKER BLUE LINE.
THE -- ACTUALLY, IF WE COULD GO
BACK TO THAT ONE SLIDE.
I JUST WANT TO HIGHLIGHT A FEW
POINTS THAT ARE NOT REALLY
EMBEDDED, BUT THEY COULD KIND
OF CONTINUE ON THE DISCUSSION
FROM THE FORECAST OFFICE IN THE
PRIOR AGENDA ITEM.
AND THAT IS WITH REGARDS TO THE
BASELINE AND THE PESSIMISTIC
SCENARIO.
AGAIN, IT'S AN IMPORTANT POINT
THAT THE PROBABILITY OF THE
PESSIMISTIC SCENARIO IS HIGHER.
ALBEIT SIMILAR TO THE BASELINE.
THERE IS SUGGESTION I WOULD
OFFER TO THE COMMUNITY TO KEEP
IN MIND WHEN CONSIDERING THAT.
ONE IS DUE TO RECENT ACTION BY
THE COUNCIL, PARTICULARLY IN
THE BUDGET LEGISLATION, THE
CITY'S REVENUE STABILIZATION
FUND, WHICH SOLE PURPOSE IS TO
BE IN PLACE IN THE ECONOMIC
NEWS THAT RESULTS IN A REVENUE
REDUCTION, IS NOW FULLY FUNDED.
SO THAT IS AN APPROXIMATELY $62
MILLION OF AVAILABLE RESOURCE
THAT HELPED MITIGATE SOME OF
THE RISK OF AN ECONOMIC SHOCK.
SO THAT'S GOOD NEWS.
ALSO?
NEWS TO CONSIDER OR
INFORMATION, IS THAT ON
AVERAGE, IN THE PAST, CITY
REVENUE FORECASTS HAVE
GENERALLY COME IN, HAVE BEEN
LOWER THAN ACTUALS.
SO OF COURSE, A RECESSION IS A
SURPRISE.
AND THAT WOULD CHALLENGE THE
BASELINE ASSUMPTION.
BUT ON AVERAGE, THE FORECASTS
HAVE RESULTED IN ACTUAL
REVENUES THAT HAVE COME IN
HIGHER THAN FORECAST.
SO IT'S JUST -- IT'S VANISH
IMPORTANT TO NOTE AND TO KEEP
IN MIND THE RISK.
BUT THERE ARE ALSO SOME
PHYSICAL TOOLS IN THE TOOLKIT
TO HELP MITIGATE THAT.
>> AND TOM, I JUST WANT TO ALSO
NOTE, THE APPRECIATION FOR
CENTRAL STAFF AND TO HIGHLIGHT
THAT IT WAS THIS COUNCIL, IT
WAS THE PREVIOUS BUDGET
COMMITTEE IN 2020 AND 2021 THAT
REALLY PUSHED BACK ON TRYING TO
DRAW DOWN THOSE RESERVES, EVEN
FURTHER THAN THE COMFORT LEVEL
THAT SEATTLE CITY COUNCIL HAD.
THE PREVIOUS ADMINISTRATION AT
ONE POINT, HAD SUGGESTED
DRAWING DOWN THE RESERVES TO
NEARLY $3 MILLION.
WE REALLY HELD THE LINE ON
TRYING TO PRESERVE AS MUCH AS
POSSIBLE IN A REALLY AGGRESSIVE
TIME LINE TO BUILD BACK FUNDING
INTO THE RESERVES AND INTO
REPLENISH THAT, LARGELY WITH
JUMP-START INVESTMENTS.
BUT WE HELD TRUE TO THOSE
COMMITMENTS.
AND AS YOU NOTED, HAVE
SUCCEEDED IN REPLENISHING.
AND I REALLY THINK THAT THAT'S
AN IMPORTANT THING TO
HIGHLIGHT, I'M GLAD YOU DID.
AND IT SHOWS STRONG FISCAL
STEWARDSHIP OVER OUR BUDGET.
I WANT TO THIS OPPORTUNITY AS
WELL, TO THANK OUR CURRENT
ADMINISTRATION AND ALSO THE
LEADERSHIP OF THE CITY BUDGET'S
OFFICE, JULIE DINGLEY, FOR YOUR
PARTNERSHIP, ONGOING, AS WE
CONTINUE TO TRY TO ADDRESS
THESE GOING COLLABORATIVELY.
AND GLAD WE HAVE THESE TOOLS IN
OUR TOOLKIT, AS YOU NOTED.
>> ALY , IF WE COULD MOVE TO
THE NEXT SLIDE.
SO THESE ARE THE HIGH-LEVEL
EXPENDITURES.
AGAIN, COMPARING THIS, THE MAY
4th PLAN WITH THE NEW
INFORMATION IN THE BASELINE
UPDATE, PROVIDED BY CBO.
SHOWS THERE IS FAIRLY
SIGNIFICANT GROWTH AND
EXPLAINING EXPENDITURE
PROJECTIONS.
SO BACK IN MAY, WE ACTUALLY
WERE APPLYING INFLATION
ADJUSTMENTS TO VARIOUS
CATEGORIES, AND IN LARGE PART,
THOSE INFLATION CATEGORIES WERE
FAIRLY SUCCESSFUL IN
ACCOMMODATING SOME OF THE COSTS
AM BUT THE NEXT EXPLANATION IS
WHY ARE THESE COSTS HIGHER?
AND THE REASON IS GENERALLY TWO
THINGS.
ONE, AS NOTED IN THE REVIEW OF
THE BASELINE DATA.
THERE WAS -- AND INCLUDED
ADDITIONAL COSTS FOR HUMAN
SERVICES CONTRACTS.
SO IN 2019, COUNCIL ADOPTED AN
ORDINANCE ADMITTED THAT HUMAN
SERVICES CONTRACT WOULD BE
INFLATED BY CPI IN FUTURE
YEARS.
SO NOTABLY IN MAY, IN THE MAY
UPDATE, IT DID NOT APPEAR THAT
HUMAN SERVICES CONTRACTS HAD
BEEN INFLATED, ACCORDING TO THE
REQUIREMENT, SO THAT SEATTLE IS
CODE REQUIREMENT.
INCLUDING NOTES IN THE
BASELINE
AND ALSO IN FUTURE YEARS, ADD
TO SOMEWHAT SIZABLE INCREASE IN
THE COST OF THE PROJECTIONS
THAT WERE PROVIDED IN MAY.
ANOTHER PIECE OF THE KIND OF
UNANTICIPATED GROWTH SINCE MAY,
ISINCREASES IN PLANNING
RESERVE.
SO THESE ARE KIND OF BELOW-THE-
LINE, RESERVES.
THAT MAY INCLUDE AS COSTS,
BECAUSE THEY ARE AMOUNTS HELD
FOR FUTURE COST ITEMS.
BUT THEY'RE HELD BELOW THE
LINE.
BECAUSE THEY'RE SOMETIMES NOT
FULLY FORMED OVER OR INCLUDE
SOME LEGAL OR CONTRACTUAL
NATURE THAT IS NOT RIPE TO BED
INCLUDED IN THE BUDGET.
IN THE ADOPTED BUDGET.
SO THOSE TWO ELEMENTS REALLY
ARE WHAT ARE, AS THEY ENTER
THIS INTERSECTION AND
EXPENDITURES IN FUTURE YEARS.
IN 2022, THE COST GROWTH IS
HIGHER.
BUT THAT'S BECAUSE OF ADOPTED
LEGISLATION.
AND THEN FRANKLY, IF YOU LOOK
AT THE SIZABLE DIFFERENCES
BETWEEN THE 2022 BAR AND THE
2023 BAR.
A LOT THAT WAS IS ONE-TIME
STUFF, DEALING WITH CARRY-
FORWARD.
SO IN DEALING WITH PRIOR
PRESENTATIONS, WE TALK ABOUT
THE AUTOMATIC CARRY-FORWARDS.
THINGS OF THAT NATURE THAT ARE
ESSENTIALLY 2021 SPENDING, THAT
ROLLS INTO THE NEXT YEAR.
SO THAT'S WHY THAT BAR IS
HIGHER.
IN GENERAL, THE PLAN, IN THE
BASELINE LEVEL, INCLUDES GROWTH
IN ALL YEARS FROM 2022 AND
FORWARD.
SO I JUST WANT TO POINT THAT
OUT, PARTICULARLY FOR THE
VIEWING PUBLIC WHO MAY NOT BE
EXACTLY TUNED IN TO ALL OF THE
ELEMENTS OF THE BUDGET CHANGES
THAT WE'VE DISCUSSED IN THIS
YEAR.
SO IF WE COULD MOVE TO THIS
SLIDE.
SO THIS IS KIND OF THE MORE
TABULAR FORMAT OF THE FINANCIAL
PLAN.
AND SHOWS THE STARTING BALANCE
AT THE TOP OF EACH YEAR AND
RUNS THROUGH REVENUE EXCHANGES
AND EXPENDITURES TOET GET TO
THE DEFICIT.
SO THIS BLUE ROW HERE IS
ESSENTIALLY THE OPERATING GAP
THAT WE SHOWED IN THE LINE
CHART, IN THE PRIOR SLIDE.
THEN YOU GET TO AN ENDING
BUDGETERY BALANCE.
THERE ARE SOME BELOW THE LINE
TO ACCOMMODATE THOSE KIND OF
PLANNING ELEMENTS THAT ARE NOT
YET INCLUDED IN THE
APPROPRIATION.
THEN YOU GET TO THE BOTTOM LINE
AD NUMBERS ARE OFF BALANCE.
A LOT OF DETAIL ON THIS CHART.
BUT THE KEY TAKEAWAY IS THE
OPERATING SURPLUS IS HIGHER
THAN WHAT WAS ORIGINALLY
PROJECTED IN MAY.
AND THE ENDING UNRESERVED FUND
BALANCE, WHICH IS THE METRIC TO
DETERMINE THE BALANCE BUDGET IS
ACTUALLY SOMEWHAT BETTER IN
2023, LARGELY BECAUSE THERE ARE
BALANCES CARRIED OVER FROM THE
CURRENT YEAR IN THE PROJECTION.
BUT ON BALANCE, IT GENERALLY
LEADS TO A GROWING NEGATIVE
UNRESERVED FUND BALANCE BY
2026.
SO THIS IS THE SORT OF THE
TABLE FORM TO LOOK AT THIS
DATA.
AND THEN AGAIN, WE CAN GO
THROUGH IN THE NEXT COUPLE OF
SLIDES, THE GRAPHS.
SO THIS IS UPDATING THOSE GRAPH
PRESENTATIONS OF THE MAY DATA,
USING NOW, THE NEW INFORMATION,
TO SHOW YOU THE PROJECTED
OPERATING GAP FOR AUGUST.
SO AS YOU CAN SEE, COMPARED TO
THE MAY GRAPH, THE AVERAGE
OPERATING GAP HAS GROWN.
SO IT'S ABOUT ON AVERAGE, $142
MILLION ON AVERAGE EACH YEAR.
AND NOTABLY, THE -- HOW, IN THE
MAY PLAN, THOSE TWO LINES WERE
GETTING CLOSER BY 2026.
NOW, LARGELY DUE TO KIND OF
LOWER REVENUE PROJECTIONS IN
THE FUTURE, COMBINED WITH THE
INCREASED COST FOR HUMAN
SERVICES CONTRACT, INFLATION
THAT IS REQUIRED PER CODE.
AND PLANNING RESERVE
ASSUMPTIONS, THE LINES ARE
FAIRLY CONSISTENT, ABOUT $142
MILLION BETWEEN THE TWO.
SO THAT'S BASICALLY SAYING THIS
HAS DETERIORATED SOMEWHAT IN
MAY PRESENTATION, GIVEN THE
RECENT REVENUE AND EXPENDITURE
UPDATE.
AND THEN THE IMPACT ON THE END
RESERVE FUND BALANCE, WOULD BE
SHOWN ON THE NEXT SLIDE.
WHICH SHOWS ESSENTIALLY THE
COMPARISON IN THIS BOTTOM LINE
BALANCED BUDGET INDICATOR,
COMPARING THE MAY PLAN, WHICH
IS IN RED.
AND THE AUGUST FINANCIAL PLAN,
THE UPDATED NUMBERS, WHICH IS
IN BLUE.
AND YOU CAN SEE, ACTUALLY, IN
THE CURRENT YEAR, IT'S
PROJECTED TO BE SLIGHTLY
BETTER.
AND THAT'S BECAUSE THE REVENUE
FORECAST FOR THE CURRENT YEAR
IS HIGHER, PRIMARILY DUE TO THE
2021 EXPENSE LIABILITIES THAT
WERE RECEIVED IN 2022 AND
CREDIT TO THE GENERAL FUND.
SO FOR 2023, THE PROJECTED
NUMBERS OF ENDING FUND POLICY
PROVES FROM NEGATIVE TO
NEGATIVE 17 MILLION.
BUT RELIES ON STARTING BALANCES
IN 2023.
OVER THE LONG TERM, GIVEN THE
LONGER AND GROWING GAP, THE
FUND BALANCE BY 2026, GOES FROM
NEGATIVE 249, TO NEGATIVE $444
MILLION ON DOLLARS.
AND I JUST WANT TO MAKE AN
IMPORTANT NOTE ON THIS.
BECAUSE THAT'S A VERY LARGE
NUMBER.
AND IT CAN BE SOMEWHAT
FRIGHTENING WHEN LOOKING AT A
NUMBER LIKE THAT.
THIS IS JUST A PLANNING
DOCUMENT.
AND IT WILL BE UPDATED AGAIN IN
THE FALL.
AND WILL BE UPDATED NUMEROUS
TIMES BEFORE WE GET TO 2026.
AND FURTHERMORE, THERE IS NO
LEGAL REQUIREMENT THAT THE OUT
YEAR OF THE FINANCIAL PLAN BE
BALANCED.
WHAT IS TO BE REQUIRED, THE
ONLY THING REQUIRED TO BE
BALANCED IS THE LEGALLY ADOPTED
BUDGET THAT IS CONSIDERED BY
THE COUNCIL.
SO THIS FINANCIAL PLAN,
PARTICULARLY IN THE OUT YEARS
IS A PLANNING GUIDE.
AND IT'S NOT INTENDED TO
INDICATE THAT THE COUNCIL NEEDS
TO BALANCE THAT $444 MILLION
ENDING RESERVE BALANCE.
PROJECTED FOR 2026 IN THIS
YEAR.
SO JUST WANTED TO ADD THAT
CONTEXT BECAUSE OF THE SIZE OF
THE NUMBER AND THE CHALLENGE
ITS REPRESENTS.
BECAUSE IT IS SEVERAL YEARS IN
THE FUTURE.
IT'S A USEFUL METRIC BUT NOT
THE SOLE GOVERNING METRIC IN
THIS ANALYSIS.
IF WE COULD GO TO THE NEXT
SLIDE.
AND JUST TO REFRESH.
I INTENTIONALLY TRIED TO GO TO
A FAIRLY FAST CLIP.
THERE IS A BACKUP MEMO, AS
CHAIR MOSQUEDA MENTIONED, THAT
INCLUDES DETAILS ON THIS.
BUT I WANTED TO REFRESH ON THE
KEY TAKEAWAYS.
AND THAT IT'S BASICALLY, NOW, I
LOST MY CHART.
THE SLIDE.
>> YEAH.
SO THE GENERAL DEFICIT AND FUND
HAS WORSENED.
UNRESERVED BALANCE HAS SLIGHTLY
IMPROVED FOR 2023.
BUT OVER THE LONG TERM, IT'S
PROJECTED TO GET WORSE.
THE MAGNITUDE OF THE CHALLENGE
INCREASED HOWEVER, THERE WILL
BE SOME CHANGES, INCLUDING NEW
REVENUES TO CERTAIN FUND
POLICIES OVER BOTH LONG-TERM
AND TEMPORARY BASIS.
THAT WE DISCUSSED IN MAY.
THOSE FACTORS STILL APPLY IN
THIS -- IN LOOKING AT THIS
PLAN.
NEXT IS THAT THE EXECUTIVE IS
STILL LOOKING AT DECISIONS
AROUND BALANCING THEIR PROPOSED
BALANCED BUDGET, WHICH WILL
RESULT IN PLANS AND CHANGES TO
THIS FINANCIAL PLAN, AND THERE
WILL BE TRANSMITTED TO THE
PROPOSED BUDGET.
TRANSMITTED WITH THE PROPOSED
BUDGET AND STAFF WILL DO THIS
RECURRING ANALYSIS BASED ON
THIS DATA.
AND ON A HIGH LEVEL.
BOTH THE MAYOR AND COUNCIL ARE
FACED WITH THIS CHALLENGE.
AND INITIATIONING COST 70s.
AND HIGHER RISK OF FURTHER
DECLINE IN CITY REVENUES.
SO THIS IS JUST THE STARTING
POINT THAT PUTS US IN A GOOD
POSITION FOR CONSIDERING THOSE
DIFFERENT OPTIONS THAT WILL BE
CONSIDERED IN THE COMING
MONTHS.
AND THAT CONCLUDES MY COMMENTS.
I BELIEVE I AM TURNING OVER TO
DIRECTOR DINGLEY FOR ADDITIONAL
SLIDES.
>> THANK YOU, TOM.
>> WELCOME BACK.
>> THANK YOU SO MUCH.
THANK YOU, CHAIR.
THANK YOU, TOM.
FIRST, I WANT TO START BY
SAYING THANK YOU.
THANK YOU FOR HAVING ME HERE
TODAY.
BUT ALSO A DEEP APPRECIATION
AND GRATITUDE FOR THE
PARTNERSHIP WITH CENTRAL STAFF
AND WITH THE CHAIR.
I HAVE BEEN VERY ENCOURAGED BY
THIS RELATIONSHIP.
AND I THINK IT'S REALLY GREAT
THAT WE HAVE BEEN ABLE TO
TRANSLATE REALLY TECHNICAL
INFORMATION INTO TERM FIST ARE
FOLKS AND DEEPEN PEOPLE'S
UNDERSTANDING OF WHY WE ARE IN
THIS POSITION AND WHERE DO WE
GO FROM HERE.
TRANSITIONING TO WHAT I CAME
HERE TO SORT OF EMPHASIZE A LOT
OF WHAT HAS BEEN SAID TODAY.
BUT FROM A TECHNICAL
PERSPECTIVE, CBO HAS WHAT WE
NEED TO DELIVER THE MAYOR'S
2023 AND 2024 PROPOSED BUDGET.
HOWEVER, WE ARE OBVIOUSLY
CLOSELY MONITORING THE FORECAST
IN AVAILABLE REVENUES.
SO AS A REMINDER THAT, OF
COURSE, IN CONJUNCTION WITH THE
AFOREMENTIONED PARTNERS, WE ARE
LOOKING AT THIS.
ASKING EACH CITY DEPARTMENT TO
IDENTIFY AREAS FOR REDUCTIONS.
LOOKING AT AREAS, WHERE THERE
ARE INCREASED COST PRESSURES TO
DELIVER CORE SERVICES AND MEET
THE NEEDS OF THE COMMUNITY.
EXPLORING PROGRESSIVE REVENUE
OPTIONS THROUGHOUT TASK FORCE.
IN PARTNERSHIP WITH CHAIR
MOSQUEDA.
OF COURSE, THOSE ARE LONGER-
TERM SOLUTIONS THAT ARE NOT
AVAILABLE TO HELP US IN THIS
NEAR TERM.
AND BEING, NOT LISTED HERE
BECAUSE OF AN AUTHOR ERROR,
WHICH IS MY OWN.
EXPAND ADJACENT REVENUE
STREAMS.
ASK THOSE ARE AREAS LIKE SHORT-
TERM BEVERAGE TAX.
THINGS WE HAVE DISCUSSED
PREVIOUSLY.
I'VE ALSO BEEN ABLE TO MEET
WITH MOST OF YOU IN THE LAST
TWO WEEKS, COUNCILMEMBERS, TO
TALK ABOUT THE STRUCTURAL
CHALLENGES THAT WE COLLECTIVELY
FACE.
AND ADDRESS COUNCILMEMBER
PRIORITIES FOR THIS BUDGET AND
BEYOND.
AND I'M HAPPY TO REPORT THAT
THE GOOD NEWS IS I HAVE HEARD
BROAD AGREEMENT ANDALIGNMENT
BETWEEN COUNCILMEMBERS AND THE
MAYOR AS A WHOLE.
AND I DON'T THINK I'M TELLING
TALES OUT OF TUNE TO SHARE.
AND THOSE INCLUDE CONTINUING TO
PROVIDE EXISTING SERVICES WHILE
AVOIDING LAYOFF FOCUSING ON
MOST VULNERABLE, ESPECIALLY
FOCUSING ON THE PANDEMIC AND
RESULTING CONDITIONS AND
ADDRESSING HOMELESSNESS AND
PUBLIC SAFETY.
SO NOW THAT WE HAVE THOSE
INPUTS.
NOW WE'RE LOOKING AT THE
CHALLENGES TO MEET.
SO IF WE CAN GO BACK JUST ONE
SLIDE PLEASE.
THANK YOU.
SO NOW WE NEED TO STILL
DETERMINE WHAT THE NUMBER IS
THAT WE'LL COLLECTIVELY BUDGET
TO FOR 2023.
AND AS YOU HEARD FROM CENTRAL
STAFF.
AND DIRECTOR NOBLE.
THERE IS STILL INCONSISTENCY.
I'M GOING TO RUN THROUGH THESE
CHALLENGES THAT WE'RE LOOKING
WITH, AS WE COME TO LOOK AT OUR
PROPOSED BUDGET FOR 2023 AND
2024.
SO AS WE HEARD, PANDEMIC-
RELATED BEHAVIORS ARE
CONTINUING TO NEGATIVELY AFFECT
REVENUES.
AND MIGHT LEAD TO SLOWING
REVENUE GROWTH IN AN ONGOING
WAY.
FORECASTERS, I DO NOT ENVY THE
WORK OF DIRECTOR NOBLE AND
HENIS.
THEY ARE CONSEQUENTLY UNCERTAIN
BETWEEN THAT BASELINE
PESSIMISTIC FORECAST.
OF WHAT WILL HAPPEN.
SO WE'RE GOING TO BE IN A
SITUATION WHERE WE ARE LIVING
FORECAST TO FORECAST.
WHICH SUGGESTS TO THE POINT
DURING DIRECTOR NOBLE'S
PRESENTATION, THAT PERHAPS
DIRECTING MIGHT BE WHAT WE
NEED.
WE'LL BE LOOKING FOR AREAS TO
BE CONSERVATIVE THROUGHOUT THE
BUDGET TO HEDGE AGAINST THAT
POTENTIAL DOWNSIDE RISK.
FURTHER, YEAR OVER YEAR, AND
THE FORECAST IS SUGGESTING THAT
IT WILL TAKE 12 TO 18 MONTHS TO
FALL BACK INTO THE 2 TO 3%
RANGE.
YOU CAN GO TO THE NEXT SLIDE
PLEASE.
SO AGAIN, THIS IS A LITTLE BIT,
IT BEARS REPEATING.
SO BEAR WITH ME HERE.
THAT RISING PRICES BOOST
PERCENTAGE PRICES BASED ON
SALES TAXES.
BUT THERE ARE SOME THAT DO NOT
MOVE AUTOMATICALLY WITH PRICE
CHANGES, LIKE PROPERTY TAXES.
PUTS CONTINUOUS PRESSURE ON
BUYING POWER AND BUDGETS FOR
COMMODITIES.
ULTIMATELY, HIGH INFLATION
CONDITIONS WILL RESULT IN
STRUCTURAL DEFICITS IN THE
GENERAL FUND AND OTHER FUNDS,
EVEN AS WE CONTEND WITH
EXISTING BALANCING CHALLENGES.
SO OUR FINE POWER IS GOING TO
GO DOWN.
AND OF COURSE, NEW REVENUE
OPTIONS ARE NOT READILY
AVAILABLE.
THOSE ARE LONGER-TERM
STRATEGIES.
SO THIS UPDATED FINANCIAL PLAN
THAT YOU SAW FROM TOM, IS THE
STARTING POINT.
BUT IT ALSO DOESN'T JUST, YOU
KNOW, GROW OUTSIDE OF EXPENSES
IN THE BASELINE.
AND IT ALSO ASSUMES NO
CONTINUATION OF ONE-TIME ITEMS
FROM 2022, OF WHICH THERE WERE
MANY.
AND OF COURSE, AN ONGOING
CHALLENGE IS THAT WE HAVE OPEN
LABOR CONTRACTS FOR A
SIGNIFICANT NUMBER OF OUR CITY
UNIONS.
AND THOSE NEGOTIATIONS ARE
ONGOING.
SO ULTIMATELY, AT THE END OF
THE DAY, THIS FORECAST IS NOT
SIGNIFICANTLY MITIGATED, HAS
NOT SIGNIFICANTLY MITIGATED THE
CHALLENGE WE HAVE ALL DISCUSSED
AND ACKNOWLEDGED.
BUT I DO HOPE TO ENGAGE WITH
ALL OF YOU MORE IN THE COMING
WEEKS AS WE CRAFT THE MAYOR'S
2023 AND 2024 BUDGET.
SO WE CAN COLLECTIVELY MEET OUR
GOALS IN AN ENVIRONMENT WITH
CHALLENGING CIRCUMSTANCES.
SO I WILL TURN IT BACK TO
DEPUTY DIRECTOR PENNUCCI AND
TOM TO TELL US WHAT IS NEXT.
THANK YOU VERY MUCH.
>> THANK YOU, DIRECTOR DINGLEY.
SO JUST KIND OF TO FINISH THIS
UP.
THE MAYOR WILL SUBMIT HIS
PROPOSED '23-'24 BUDGET ON
SEPTEMBER 24th, WHICH WILL
INCLUDE POLICY PROPOSALS ON TOP
OF THE BASELINE NUMBERS THAT WE
REVIEWED TODAY.
AND THE COUNCIL, OF COURSE,
WILL THEN CONSIDER THAT
PROPOSAL AND MAKE CHANGES TO
ADOPT A BALANCED BUDGET FOR
2023.
AND ENDORSE BALANCED BUDGET FOR
2024, WITH UPDATE TARGETED FOR
NOVEMBER 22nd.
AS I MENTIONED, THIS IS THE
FINAL REVIEW OF THIS
INFORMATION, PRIOR TO RECEIVING
THE BUDGET.
THERE WILL ALSO BE, DURING THE
COUNCIL'S BUDGET, DELIBERATIVE
PROCESS, THERE WILL BE A FINAL
REVENUE FORECAST FROM BOTH CBO
AND THE OFFICE OF ECONOMIC
FORECAST THAT WE WILL RECEIVE
IN NOVEMBER.
WHICH WILL CONTINUE TO KEEP THE
PULSE ON WHAT IS HAPPENING WHEN
THE ECONOMY.
AND THEN FINALLY, THIS HAS BEEN
JUST ASSURANCE THAT USING THE
FRAMEWORK WE STARTED IN MAY AND
CONTINUING TODAY, CENTRAL STAFF
WILL CONTINUE TO PROVIDE THE
BUDGET PROPOSALS BEING
CONSIDERED HAVE AN IMPACT ON
THE FINANCIAL PLANNING
PROJECTIONS.
AT ANY STAGE IN THE PROCESS.
SO THAT CONCLUDES OUR
PRESENTATION.
AND AVAILABLE TO HELP WITH ANY
QUESTIONS WE HAVE.
>> OKAY.
COLLEAGUES, I DO WANT TO TEE UP
A FEW ITEMS AS WELL, THAT I
THINK ARE A FOLLOW-UP TO THIS
PRESENTATION, BEFORE GETTING
INTO MORE OF A DISCUSSION OR
QUESTIONS.
I THINK HOPEFULLY THIS WILL
HELP ROUND OUT OUR DISCUSSION
ABOUT WHERE DO WE GO FROM HERE.
AS THE BUDGET CHAIR, FAMOUSED
WITH A SIGNIFICANT BUDGET
DEFICIT, AS YOU'VE HEARD, WE
HAVE BEEN IN DEEP CONVERSATION
WITH CENTRAL STAFF AND REALLY
APPRECIATE THE COLLABORATION
WITH THE CITY BUDGET'S OFFICE.
BUT AFTER WE REFERRED THE NEWS
ON MONDAY LAST WEEK, FROM THE
OFFICE OF ECONOMIC AND REVENUE
FORECAST, I HAVE ASKED CENTRAL
STAFF TO WORK TO CALCULATE A
SCENARIO, IN WHICH WE ARE ABLE
TO FULLY PRESERVE THE
COMMITMENTS OF THE 2020 JUMP
START SPEND PLAN, AS CODIFIED
IN STATUTES WITH THE AMOUNTS IN
2020, BASED ON THE REVENUE THAT
WE UNDERSTOOD TO BE AVAILABLE.
WE WANT TO MAINTAIN THE AMOUNTS
AND THE SPENDING CATEGORIES AS
DIRECTED IN THE JUMP-START
SPEND PLAN.
FOR EXAMPLE, THAT WOULD STILL
ALLOW FOR US TO SEE A NEAR 42%
INCREASE IN INVESTMENTS IN THE
SPEND PLAN, AS CODIFIED BY THIS
COUNCIL, AS IT RELATED TO JUMP-
START SPENDING.
THAT'S A 42% INCREASE FOR
THINGS LIKE AFFORDABLE HOUSING,
NEW DEAL, EQUITABLE INVESTMENT,
EQUITABLE RECOVERY.
THESE ARE OUR COMMITMENTS THAT
WOO MADE TO A BROAD COALITION.
AND IT'S THE COMMITMENTS THAT
WE AS COUNCILMEMBERS
UNIVERSALLY, UNANIMOUSLY,
APPROVED AND CODIFIED INTO
STATUTE.
THE ABILITY TO MOVE FORWARD
WITH THOSE COMMITMENTS,
SOMETHING THAT I REALLY WANT TO
BE ABLE TO STAND BY, AS WE ALSO
RECOGNIZE, THERE ARE SOME
POTENTIAL SHORT-TERM SOLUTIONS
FOR 2022 -- 2023 AND 2024 THAT
COULD USE THE BALANCE OF THE
JUMP-START REVENUES THAT ARE
PROJECTED TO COME IN ABOVE THE
LEVELS ESTIMATED FROM 2022.
AND USE THAT DIFFERENCE TO HELP
US ADDRESS THE GENERAL FUND
CURRENT DEFICIT.
IN THE SHORT-TERM.
JUST FOR THOSE TWO YEARS, TO
PREVENT SIGNIFICANT REDUCTIONS
IN CITY SERVICES.
AND I WOULD ALSO SAY THAT WHEN
WE AS A COUNCIL PASSED JUMP-
START IN 2020.
WE HAD INTENDED FOR JUMP-START
TO ALSO HELP PREVENT AGAINST
AUSTERITY AT THE BEGINNING OF
THE PANDEMIB.
SO PANDEMIC.
SO IT VERY MUCH IN LINE WITH
MAKING SURE WE PROTECT THE
CRITICAL CITY SERVICES, LEAD
MOVING FORWARD WITH THE
COMMITMENT WE THE STATUE WE
CODIFIED IN 2020 THAT WOULD
ALLOW US TO IN 2022 AND BEYOND
MAKE SURE WE HAVE DIRECT
JUSTICEMENTS IN THE CATEGORIES
IN CONJUNCTION WITH OURSPEND
PLAN.
AS EVERYONE KNOWS AS WE HAVE
TALKED ABOUT THIS BUDGET
SITUATION IN THE LAST EIGHT
MONTHS, THANKS IN LARGE PART TO
THE TRANSPARENCY THAT HAS BEEN
MADE AVAILABLE, BECAUSE CENTRAL
STAFF TOOK THE DIRECTIVE FROM
TWO YEARS AGO, TO DIG INTO THE
FOOTNOTE THAT WAS INCLUDED IN
THE LAST TWO YEARS'
PROJECTIONS, AND REALLY
DAYLIGHT THE SIX-YEAR FINANCIAL
PLAN, WE BEGAN HAVING A
CONVERSATION IN A COLLABORATIVE
WAY, WITH OUR NEW DIRECTOR OF
THE CITY BUDGET'S OFFICE, JULIE
DINGLEY, WITH CENTRAL STAFF AT
THE TABLE.
STARTING THIS YEAR, TO SAY, HOW
DO WE COLLECTIVELY, AS A CITY
FAMILY, ADDRESS THIS SHORTFALL,
THAT WAS BURIED IN, I THINK,
PAGE 700-SOMETHING.
AND PAGE 600-SOMETHING IN OUR
LAST TWO BUDGETS AND BRING THAT
TO OUR FOREFRONT, SO THAT WE
COULD COLLECTIVELY ADDRESS THE
UNDERSPIN THAT HAD BEEN USED TO
FILL IN FUTURE YEARS' BUDGET.
AS I'VE SAID REPEATEDLY, JUMP
START PROGRESSIVE REVENUE,
COULD NOT BE THE ONLY SOLUTION
TO ADDRESSING THE SHORTFALL,
THAT WAS IDENTIFIED IN THE SIX-
YEAR, FISCAL YEAR OUTLOOK.
I HAVE ASKED STAFF TO GO FORTH
WITH HELPING US AS A COUNCIL,
AND INCOLLABORATION WITH THE
CITY BUDGET'S OFFICE, LOOK AT
THIS SCENARIO, THAT WOULD ALLOW
FOR THE MODEST ESTIMATES FROM
THE 2022 UNDERSPEND TO BE BUILT
INTO THE BASELINE EXPENDITURES.
ASSUME VERY LITTLE GROWTH IN
NEW EXPENDITURES IN 2023, THAT
WILL HELP HOLD OUR BUDGET
STEADY.
BUT TO ADDRESS THIS SHORTFALL
THAT WE WILL FACE IN 2023 AND
2024, AS I NOTED, STAY TRUE, TO
THE 2020 SPEND PLAN AS CODIFIED
IN JUMP STARTS, EXPENDITURE
PLAN, STAY TRUE TO THOSE
AMOUNTS AND USE THAT
DIFFERENCE, THE HIGHER-THAN-
ANTICIPATED DOLLAR AMOUNTS TO
HAPPEN US WITH THE GENERAL FUND
UNDERSPEND.
HIS HAS BEEN WHAT THE
COMMITTEE HAS IS ASKED US TO
LOOK LIKE IN THE PAST, GENERAL
FUND STREAM.
BUT EVEN THOSE ADDITIONAL
REVENUE STREAMS ARE NOT
SIGNIFICANT ENOUGH IN THE NEAR
TERM TO HELP US CLOSE THIS GAN.
SO THIS SHORT-TERM SOLUTION
THAT I'M SUGGESTING AND I WILL
ASK CENTRAL STAFF TO WALK US
THROUGH THIS SCENARIO, THIS
SHORT-TERM SOLUTION WITH CLEAR
SIDEBOARDS TO ONLY BE USED FOR
TWO YEARS AND MAINTAIN OUR
PLANS, WITH THE AMOUNTS WE NEED
IN 2020.
THIS WOULD NEED TO BE COUPLED
WITH THE LONGER-TERM
STRATEGIES.
INVESTING IN PROGRESSIVE
REVENUE SOURCES THAT WOULD BE
AVAILABLE TO US, STARTING FOR
THE 2025-2026 BUDGET CYCLES.
SO THAT WOULD MEAN REVENUE
WOULD NEED TO BE IMPLEMENTED
AND WE WOULD NEED TO START
COLLECTING IN 2024.
AND I'M VERY EXCITED THAT IN
PARTNERSHIP WITH THE MAYOR'S
OFFICE, WE ARE CONTINUING TO
MOVE FORWARD WITH ESTABLISHING
A PROGRESSIVE REVENUE WORK
GROUP THAT WILL BE ABLE TO
IDENTIFY SOLUTIONS FOR US
THROUGHOUT NEXT YEAR, THAT I
HOPE WILL BE ABLE TO BE
IMPLEMENTED IN 2024, THAT WOULD
ALLOW FOR THE LONGER-TERM
STABILITY.
THE SEATTLE WORK GROUP FOR A
CHANGE, COULD THEN BE USED IN
2025 AND BEYOND.
SO THAT THIS SHORT-TERM
APPROACH TO JUMP-STARTS HIGHER
FOR ANTICIPATED REVENUE, WOULD
BE VERY SHORT-TERM IN NATURE.
SECOND THING IS, WE WANT TO
CONTINUE TO SEEK STATE AND
FEDERAL FUNDS, COUNTY
PARTNERSHIP IN EVERY PLACE
POSSIBLE.
AND WE ARE CONTINUALLY INSPIRED
BY THE PROGRESSIVE REVENUE
OPTIONS AND POLICIES THAT ARE
COMING FROM CONGRESS RIGHT NOW.
THIS FOLLOWS UP ON AMERICAN
RESCUE PLAN.
THE CORONAVIRUS LOCAL RELIEF
FUNDS.
THE BIPARTISAN INFRASTRUCTURE
BILL.
AND NOW THE INFLATION
ADJUSTMENT ACT.
WE ARE GOING TO CONTINUE TO SEE
POSSIBLE REVENUE STREAMS COMING
TO OUR STATE AND REGION.
AND WE WANT TO WORK IN
PARTNERSHIP WITH THE STATE
COUNTIES TO BRING ADDITIONAL
REVENUE TO OFFSET WHERE THE
CITY MAY HAVE STEPPED UP.
WHERE DOLLARS ARE NOT AVAILABLE
FROM THOSE.
AND THIRD, AS YOU HEARD
DIRECTOR DINGLEY NOTE, IN THIS
MEETING AND PREVIOUS MEETING,
THERE ARE SYSTEMIC ISSUES THAT
THE CITY BUDGET OFFICE IS
COMMITTED TO ADDRESSING, TO
MAKE SURE THAT WE ARE IMPROVING
OUR BUDGET BASELINE ASSUMPTION,
SO THAT EVERY YEAR, WE DO NOT
HAVE DOLLARS GOING TO
DEPARTMENT FOR POSITIONS THAT
ARE VACANT.
WE CANNOT RELY ON USING
UNDERSPEND FROM ONE CALENDAR
YEAR TO BE PAID FOR NEXT
CALENDAR YEAR'S BUDGET.
THAT IS NOT SUSTAINABLE AND
DIRECTOR DINGLEY HAS TAKEN THAT
ISSUE HEAD-ON AND IS WORKING ON
POLICIES IN THE CITY SO THAT
EACH DEPARTMENT HAS REALTIME
BUDGETING INFORMATION GOING
FORWARD AFTER THIS YEAR.
I APPRECIATE THAT.
AND COLLEAGUES, LASTLY, I'D
LIKE TO SIGNAL THAT THE
SCENARIO THAT I'M ASKING THE
CITY, CENTRAL STAFF TO WALK
THROUGH IS A POLICY PACK THAT
WE'RE EXPLORING AGAIN.
EXPLORING FOR THE 2023 AND 2024
BUDGET SHORTFALL ONLY.
IT IS SHORT-TERM, ONE-TIME
SOLUTION IN NATURE.
ALLOWING FOR US TO MAINTAIN OUR
SPENDING AS ORIGINALLY INTENDED
IN THE 2020 SPEND PLAN AS
CODIFIED.
AND ALLOWS FOR US TO MAINTAIN
THE FULL AMOUNTS ASSUMED INTO
THOSE CATEGORIES.
STILL ALLOWS FOR AN INCREASE OF
42% FOR EXAMPLE.
IN HOUSING.
AND IT DOES NOT RELY ONLY ON
JUMP-START TO SOLVE THE
SYSTEMIC ISSUE.
IT ALLOWS FOR US TO BUILD IN
PROGRESSIVE REVENUE IN THE
FUTURE.
AND IF WE OVER-RELIED, FRANKLY,
ON JUMP-START NOW, WE WOULD
HAVE AN UNSUSTAINABLE BUDGET IF
THE REVENUE FORECAST CONTINUES
TO DECREASE IN THE NOVEMBER
FORECAST WE WILL RECEIVE THIS
YEAR OR IN FUTURE YEARS.
SO THIS IS NOT ONLY THE SMART
THING TO BE ABLE TO DO TO
START, TO BE ABLE TO WARD OFF
AUSTERITY, TO BE ABLE TO MAKE
THE INVESTMENTS, AND LITERALLY
JUMP-START OUR ECONOMY AND
HOUSING AND EQUITABLE RECOVERY.
BUT ALSO ALLOWS FOR US TO MOVE
FORWARD WITH INVESTMENTS IN OUR
CORE, THE CITY SERVICES.
AND VULNERABLE POPULATIONS.
THAT JUMP-START INITIALLY
INTENDED TO PROTECT AS WELL.
BY PREVENTING AGAINST
AUSTERITY.
SO AS YOU KNOW, I DON'T DO
ANYTHING OUT HERE ON THE DIAS
IN DEVELOPMENT ON POLICY,
WITHOUT TALKING TO KEY
STAKEHOLDERS.
AND WE HAD A LARGE NUMBER OF
ORGANIZATIONS THAT WERE PART OF
BUILDING THE TAX PROPOSAL AND
JUMP-START, ALONG WITH MY
COUNCIL COLLEAGUES, WHO
COSPONSORED THE LEGISLATION.
I HAVE REACHED BACK OUT TO SOME
OF THOSE STAKEHOLDERS THAT WERE
PART OF OUR INITIAL, CONCEPTUAL
TAX DISCUSSION, AND TALKED
ABOUT THE OPPORTUNITY TO
MAINTAIN THE 2020 SPEND PLAN,
AS CODIFIED INTO STATUTE.
SHORT-TERM SOLUTION FOR THE
NEXT TWO YEARS.
RELY ON PROGRESSIVE REVENUE
GOING FORWARD.
AND CLEAR SIDEBOARDS ON HOW
JUMP STARTS INTEGRITY WOULD BE
MAINTAINED.
AND I REALLY APPRECIATE THAT
I'VE RECEIVED A POSITIVE
MESSAGE BACK FROM THE
WASHINGTON STATE BUDGET AND
POLICY CENTER, WORKING
WASHINGTON, 350 SEATTLE.
THE SEATTLE KING COUNTY
COALITION ON HOMELESSNESS,
SCIU925, TEAMSTERS 117 AND A
NUMBER OF INDIVIDUALS WHO ARE
STILL HAVING CONVERSATIONS IN
COMMUNITY, BUT VERY MUCH
STRONGLY SUPPORT THE APPROACH
OF MAINTAINING JUMP START'S
INTEGRITY.
NAY WROTE ME A COMMENT THAT
SAID, WE WORKED TIRELESSLY IN
2020, WITH COUNCILMEMBER
MOSQUEDA AND OTHER COLLEAGUES
SPONSORING JUMP-START.
TO BUILD THIS ROBUST COMMUNITY
SUPPORT FOR AGGRESSIVE REVENUE,
TO ADDRESS THE CHALLENGES OF
COVID, BULL ALSO THE CHRONIC
NEED FOR MORE PROGRESSIVE
FUNDING.
WE DEVELOPED THE SPEND PLAN AND
CONSULTATION WITH COMMUNITIES,
BUSINESSES AND NONPROFIT
ORGANIZATIONS AND SERVICE
PROVIDERS AND RESIDENTS OF
SEATTLE.
AND THEY SAID, GIVEN THAT JUMP-
START IS PROJECTED TO RAISE
ABOVE WHAT WAS ESTIMATED IN
2020.
WE SUPPORT THE REQUESTS MADE OF
CENTRAL STAFF.
FOR CENTRAL STAFF TO LOOK AT A
SCENARIO THAT ALLOWS FOR US TO
TEMPORARILY ADDRESS THE SEATTLE
BUDGET SHORTFALL IN 2023 AND
2024 ONLY, WITH EXCESS JUMP-
START REVENUE, GOING TO CORE
GOVERNMENT SERVICES TO CREATE A
MORE EQUITABLE SEATTLE.
THEY SAID, LET'S BE CLEAR.
THIS MEANS WE WANT THE FULL
PROMISE OF FUNDING AND THE
COMMITMENTS AS OUTLINED IN THE
SPENDING CATEGORIES TO BE
MAINTAINED AND ADHERED TO AS
ENVISIONED IN 2020.
IT'S UNACCEPTABLE THAT
COMMUNITIES HAVE WAITED FOR
CLIMATE HOUSING.
AND WE RECOGNIZED THAT JUMP
STARTS HIGHER THAN ANTICIPATED
RETURNS AND ITS SUCCESS IS A
WAY TO TEMPORARILY SUPPORT
EXISTING PROGRAMS WHILE
MAINTAINING THE COMMITMENT THAT
JUMP START ORIGINALLY
ENVISIONED FOR ITS SPEND PLAN
AS CODIFIED.
SO I REALLY APPRECIATE THE
SUPPORT FROM SOME OF THE FOLKS
WHO ARE CORE TO DEVELOPING THE
SPEND PLAN.
AND WE WILL MAINTAIN THE
INTEGRITY OF THAT SPEND PLAN,
WHILE LOOKING AT WAYS TO
PROVIDE INITIAL RELIEF TO THE
BUDGET.
COUNCILMEMBER HERBOLD, I
BELIEVE THERE'S JUST THREE
SLIDES.
IF CENTRAL STAFF COULD WALK
THROUGH THOSE BRIEFLY, AND THEN
WE COULD TAKE ALL QUESTIONS
TOGETHER.
OKAY.
CENTRAL STAFF, PLEASE GO AHEAD
AND WALK US THROUGH THOSE
OUTLINES THAT I JUST COMMENTED
ON.
>> THIS IS WHERE I SHARE MY
SCREEN AGAIN.
AND TRY TO LEAVE IT ON THE
SCREEN THIS TIME.
SO THANK YOU FOR THAT
INTRODUCTION, AS CHAIR MOSQUEDA
DESCRIBED.
WE WERE ASKED TO PREPARE A
SCENARIO THAT AVOIDS AUSTERITY
AND PRESERVES THE COMMITMENTS
MADE IN 2020 AND AFFIRMED IN
2021 BY THE COUNCIL ON HOW THE
JUMP-START TAX REVENUES SHOULD
BE ALLOCATED.
SO WHAT WE PREPARED FOR YOUR
CONSIDERATION TODAY, AS
GUIDANCE FOR THE EXECUTIVE AND
DIRECTOR DINGLEY, AS THEY
PREPARED THE PROPOSED BUDGET
AND CONSIDER THE DECISIONS
AHEAD, IS A PROPOSAL THAT WOULD
ALLOW SOME AMOUNT OF JUMP START
FUND TO CONTINUE TO PROVIDE
CONTINUITY OF CITY SERVICES IN
2023 AND 2024.
AND THE AMOUNT WOULD BE
CALCULATED BASED ON TAKING THE
REVENUE ESTIMATES WE WERE USING
WHEN DEVELOPING THE 2020
SPENDING PLAN FOR JUMP START.
AND THEN COMPARING THAT TO THE
CURRENT FORECAST.
THE DIFFERENCE BETWEEN THOSE
NUMBERS WOULD BE THE MAXIMUM
AMOUNT OF JUMP-START REVENUE
THAT COULD BE TRANSFERRED TO
THE GENERAL FUND TO MAINTAIN
CITY SERVICES.
IT WOULD BE A SHORT-TERM
ALLOWANCE, AND IT WOULD BE
IMPORTANT IN THIS PROPOSAL THAT
THE POLICIES WERE CRAFTED IN A
WAY THAT WOULD ONLY ALLOW THAT
TRANSFER, IF GENERAL FUND
REVENUES CONTINUE TO BE
PROJECTED TO BE LESS THAN
EXPECTED, OR EXCUSE ME,
PROJECTED EXPENDITURES.
AND THEN ALSO REQUIRE THAT AS
WE GET FUTURE REVENUE UPDATES,
IF CONDITIONS IMPROVE IN THE
GENERAL FUND IN THE CURRENT
YEAR, FORECASTS IMPROVE, THAT
THE JUMP-START FUND WOULD BE
PAID BACK FIRST, PRIOR TO
AUTHORIZING ADDITIONAL GENERAL
FUND EXPENDITURES.
SO AS SHOWN AT THE TIME, THE
JUMP START SPENDING PLAN AND
TAX WAS AUTHORIZED BY THE
COUNCIL IN 2020.
WE AUTHORIZE IN JUMP START
REVENUE.
AND $227 MILLION IN 2024.
REVENUES ARE CURRENTLY ABOUT
30% HIGHER, 30% OR MORE HIGHER
THAN ESTIMATES.
THIS MEANS THE CITY COULD
INVEST THE FULL AMOUNT, THE
$223 MILLION AS ORIGINALLY
COMMITTED IN 2023.
AND 71 MILLION WOULD BE
TRANSFERRED TO THE GENERAL FUND
IN 2023.
>> THIS NEXT SLIDE IS AN
EXAMPLE OF HOW THAT WOULD PLAY
OUT FOR THE JUMP START SPENDING
PLAN.
AS SHOWN ON THIS TABLE, IN
2023, YOU COULD INVEST THAT
FULL $223 MILLION IN JUMP-START
FUND CATEGORIES AND TRANSFER
$71 MILLION TO THE GENERAL
FUND.
THIS WOULD ALLOW FOR
SIGNIFICANT INCREASE IN THE
JUMP-START SPENDING CATEGORIES
FOR 2023, OR ABOUT ALMOST 40%
OR OVER 40%, AS WELL AS
PROVIDING THAT SUPPORT TO THE
GENERAL FUND.
IN ADDITION, YOU'LL SEE THAT WE
ARE SHOWING SOME FUND BALANCE
IN THIS TABLE.
THAT IS REFLECTING THE AMOUNT
OF JUMP START REVENUE THAT IS
PROJECTED TO COME IN, IN 2022.
BUT IS HIGHER THAN WHAT WE
BUDGETED IN THE ADOPT -- IN THE
2022 ADOPTED BUDGET.
AND PER DIRECTOR NOBLE'S
PRESENTATION, GIVEN SOME OF THE
UNCERTAINTY ABOUT PAYROLL TAX
REVENUES AND THE NEWNESS OF
THAT TAX, CENTRAL STAFF WILL BE
PROVIDING SOME OPTIONS TO
CREATE A RESERVE TO ENSURE SOME
STABILITY IN THE JUMP START
FUND, AS WELL AS PROVIDING THAT
STABILITY TO THE GENERAL FUND.
AND THIS FINAL SLIDE SHOWS THE
FULL SCENARIO.
SO THIS IS WHAT IT MEANS FOR
GENERAL FUND BALANCING.
SO ALONG WITH THE JUMP START,
WE INCLUDED MODEST ASSUMPTIONS
ABOUT 2022 UNDERSPEND OF ABOUT
$20 MILLION.
AND AS THIS COMMITTEE HAS BEEN
ENGAGED IN CONVERSATIONS, WE
KNOW THAT CURRENTLY, THE
EXECUTIVE IS LOOKING FOR, IS
CURRENTLY HOLDING CERTAIN
EXPENDITURES IN 2022,
UNDERSTANDING THE PROJECTED
SHORTFALL IN 2023, AND
RESERVING SOME OF THOSE
RESOURCES TO MITIGATE ANY
REDUCTIONS THAT NEED TO BE MADE
TO BASIC EXPENDITURES.
IT ALSO DOES MODEL A MODEST
SAWMPLEDZ, ABOUT CERTAIN
BASELINE BUDGET REDUCTIONS,
LESS THAN 1%, A HALF A PERCENT
IN 2023, TO HELP BALANCE THE
BUDGET.
AND TO ADDRESS THE STRUCTURAL
DEFICIT IN THE OUTYEARS.
OF COURSE AS THE CHAIR NOTED,
WE WOULD NEED TO RELY ON OTHER
NOTIONS, AND WE WERE CURRENTLY
ENGAGED IN ONGOING
CONVERSATIONS WITH OTHER STAFF,
ON NEW PROGRESSIVE REVENUES, AS
WELL AS REALLY LOOKING AT OUR
BASELINE BUDGET EXPENDITURES,
AND HOW TO REPRIORITIZE CITY
SPENDING TO MEET THE MOST
CRITICAL NEEDS.
SO IN THIS TABLE, THESE THREE
PURPLE ROWS SHOW THE SORT OF
DIFFERENCE BETWEEN THE
FINANCIAL PLAN THAT TOM
DESCRIBED AND HOW THIS SCENARIO
WOULD AFFECT IT.
SO THE FIRST LINE SHOWS THAT
$20 MILLION UNDERSPEND IN 2022.
AND THEN THE ASSUMPTION ABOUT A
HALF A PERCENT, BASELINE
REDUCTION IN EXPENDITURES.
IT SHOWS A MAXIMUM TRANSFER
FROM THE JUMP-START FUND TO THE
GENERAL FUND OF $71 MILLION IN
'23 AND $84 MILLION IN '24.
AND IT ASSUMES SOME NEW
SPENDING WILL HAVE TO OCCUR IN
2023.
THIS CAN BE SPREAD OUT IN 2023
AND 2024, ACKNOWLEDGING THERE
WILL BE SOME COST INCREASES
THAT ARE UNAVOIDABLE THAT ARE
NOT YET REFLECTED IN THE
BASELINE BUDGET.
AND AGAIN THIS IS JUST A
SCENARIO.
WE DON'T HAVE COMPLETE
INFORMATION.
THE BUDGET OFFICE IS STILL
WORKING ON PROPOSALS FROM THE
DEPARTMENTS AND DECISIONS FROM
THE MAYOR.
BUT AS SHOWN IN THIS SCENARIO,
THIS WOULD MEAN THAT THE JUMP-
START FUND COULD MAINTAIN THOSE
2020 COMMITMENTS.
CONTRIBUTE TO THE GENERAL FUND
PICTURE, AND SHOW A BALANCED
BUDGET AT THE END OF 2024.
AND WOULD IMPROVE THE
CONDITIONS FOR 2026.
AND AS TOM NOTED IN HIS
PRESENTATION.
IT IS NOT REQUIRED THAT THE
FINANCIAL PLAN SHOW A BALANCED
BUDGET IN THE OUT YEARS.
IT'S JUST INFORMED THAT WE
CONTINUE WORKING TOGETHER TO
IDENTIFY LONGER-TERM
STRATEGIES, SO WE DON'T
CONTINUE TO FACE THIS DEFICIT
AND COMING UP WITH SOLUTIONS
YEAR OVER YEAR.
AND WITH THAT, I'LL TURN IT
BACK TO THE CHAIR.
>> OKAY, GREAT.
SO THANKS FOR SHARING.
AND I THINK YOU CAN TAKE DOWN
THOSE NUMBERS, BECAUSE IT'S ALL
STILL IN DEVELOPMENT IN ONE BIG
CAVEAT THAT I WOULD NOTE IS WE
STILL WANT TO SEE WHAT THE
IMPACT OF THE INFLATIONARY
ADJUSTMENT WOULD BE.
SO THAT IS A CRITICAL PIECE IN
PLUGGING INTO THESE FINAL
SCENARIO SLIDES HERE.
BUT WITH THAT, IT IS ONE WAY
FOR US TO SIGNAL THAT I THINK
THAT WE ARE ALL INTERESTED IN
AVOIDING AUSTERITY, MAINTAINING
THE INTEGRITY OF JUMP START,
AND CONTINUING TO LOOK AT THESE
LONGER-TERM SOLUTIONS.
COUNCILMEMBER HERBOLD, YOU HAVE
BEEN VERY PATIENT.
SO I WILL TURN IT OVER TO YOU.
>> THANKS.
I APPRECIATE LEARNING ABOUT
YOUR PROPOSAL, MADAM CHAIR.
I DO HAVE JUST TWO QUICK
QUESTIONS ABOUT THE PRIOR
PRESENTATION.
BUT BEFORE I MOVE TO THEM.
I WANT TO TAKE THIS OPPORTUNITY
TO SIGNAL FLEXIBILITY FOR 2023
AND 2024 ONLY.
SOME PORTION OF REVENUE THAT
COMES IN OVER EXPECTATIONS.
TO SUSTAIN CITY FUNCTIONS THAT
WE CAN CONTINUE TO DO NON-
AUSTERITY BUDGETING.
WE ALWAYS HAVE TO BE COGNIZANT
TO PUT BOUNDARIES ON THIS
APPROACH.
WE'RE FACING A LONG-TERM
STRUCTURAL PROBLEM THAT MUST BE
SERVED FOR NEW PROGRESSIVE
REVENUE, SO WE DON'T HAVE AN
OVERRELIANCE ON REVENUE THAT,
WE'VE ALREADY EXPRESSED A
COMMITMENT FOR, TO FEEL
SIGNIFICANT NEW INVESTMENTS IN
AFFORDABLE HOUSING.
AND I'M HOPING THAT LETTER THAT
YOU REFERENCED, MADAM CHAIR, IS
IN ALL OF OUR INBOXES.
AND IF NOT, IF YOU DON'T MIND
SENDING IT, THAT WOULD BE
GREAT.
TWO QUICK QUESTIONS.
ONE ABOUT SLIDE NINE.
AND THE OTHER ABOUT SLIDE
EIGHT.
AND I'M SORRY.
I KNOW I ASKED THIS QUESTION IN
MY SAYING THIS COMMITTEE
MEETING.
BUT I JUST WANT TO CONFIRM
AGAIN FOR MYSELF AND FOR THE
VIEWING PUBLIC.
THE PROJECTED STARTING BALANCE,
WELL, I GUESS I SHOULD SAY OF
SAY THE 2022 OPERATING SURPLUS
AND 2023 PROJECTED STARTING
BALANCE ON SLIDE 9. IT'S MY
RECOLLECTION THAT NEITHER OF
HAS INCLUDE UNDERSPEND NOR ANY
OF THE PLANNED SPENDING HOLDS
FROM 2022 AND I JUST -- I KNOW
AS IT RELATES TO UNDERSPEND.
WE RARELY GET THAT INFORMATION,
UNTIL WE GET THE BUDGET.
BUT THE REPORTING ON THE
PROJECTED REVENUES, I THINK,
THUS FAR, HAS NOT TALKED A LOT
ABOUT THE WORK THAT THE COUNCIL
HAS BEEN DOING WITH CBO.
TO DO SOME PLANNED SPENDING
HOLD FOR 2022.
AND WHAT THAT DOES IS IT BY
HOLDING SOME SPENDING FOR 2022,
THAT ALLOWS US BOTH TO REDUCE
THE BASELINE FOR 2023 AS WELL
AS TO CARRY OVER MORE FUNDS TWO
2022.
AND JUST WANTED TO, FOR MYSELF
AND FOR THE RECORD, JUST KNOW
WHETHER OR NOT THIS CHART ON
SLIDE 9 REFLECTS THAT.
>> THANKS FOR THE QUESTION VICE
CHAIR, ERBOLD.
SO THESE NUMBERS DO NOT INCLUDE
ANY ASSUMPTION ABOUT UNDERSEND
SPEND IN THE CURRENT BUDGET.
EITHER FROM NATURAL SPEND OR
OLD HOES IN PLACE.
WITH REGARDS TO THE IMPACT OF
THAT IN FUTURE YEAR, MY INITIAL
ASSUMPTION, WOULD BE THAT THOSE
ITEMS ARE ONLY BEING HELD ON A
ONE-TIME BASIS AND IF THERE ARE
ONGOING.
IT WOULD NOT BE HELD N. FUTURE
YEARS, WE ARE CONSIDERING THAT
AS ACTUALLY PART OF THE
PROJECTION AD GROWING IN
FUTURE YEARS BUT I DON'T KNOW
THE DETAIL ON SPECIFICALLY WHAT
THOSE ARE.
>> WHEN YOU SAID FUTURE YEARS,
YOU MEAN BEYOND 2023?
WE ARE SORT OF BEHIND THE
SCENES, CONSIDERING THEM, BUT
NOT REFLECTED HERE FOR 2023?
>> CORRECT.
>> YEAH.
COUNCIL MEMBER HERBOLD, IF I
MAY JUST ADD IN IF WE ASSUMED
REDUCED EXPENDITURES, YOU WOULD
SEE 2023 IS SLIGHTLY IN THE
BLACK IN THE SCENARIO.
BUT IT WOULDN'T IMPROVE THE
OUTYEARS AS TOM DESCRIBED FOR
ANY OUTGOING EXPENDITURES.
I WILL JUST NOTE THAT THERE ARE
STILL 2022 ISSUES THAT THE
BUDGET OFFICE IS HEARING ABOUT
FROM DEPARTMENTS WITH SOME
INCREASED COSTS.
SO THERE ARE A LOT OF MOVING
PIECES, WHICH IS WHY THEY ARE
NOT YET PROJECTING THAT SORT OF
UNDERSPEND.
AND DIRECTOR DINGLEY, PLEASE
CORRECT ME IF I'M WRONG THERE.
WHICH IS WHY WE INCLUDED THE
$20 MILLION ASSUMPTION IN
COUNCIL CHAIR MOSQUEDA'S
SCENARIO, THAT BASED ON
PREVIOUS YEARS UNDERSPENDING,
IT MAY BE A BIT CONSERVATIVE
BE, BUT IT IS HARD TO PREDICT
THAT NOW.
SO WE ARE TRYING TO SHOW A
CONSERVATIVE SUBMIT
ESTIMATE.
AND AS DIRECTOR DINGLEY AND THE
EXECUTIVE TEAM, COLLECT MORE
INFORMATION FROM DEPARTMENTS IN
THE NEXT COUPLE OF WEEKS TO
FINALIZE THE BUDGET.
IT IS, I AM ASSUMING THAT THE
PROPOSED BUDGET WOULD LIKELY
HAVE SOME UNDERSPEND SAWRCHLSZ,
UNLESS THEY DECIDE TO RELEASE
THE HOLDS ON ANY OF THAT
SPENDING.
>> SUPER HELPFUL.
THANK YOU.
>> AND MY SECOND QUESTION.
>> JUST REAL QUICK ON THAT.
DIRECTOR DINGLEY, DID YOU HAVE
SOMETHING YOU WANTED TO ADD TO
THE COUNCILMEMBER'S QUESTION.
>> JUST TO CONFIRM WHAT ALY
SAID, WE ARE IN THE MIDST OF A
LOT OF THESE DECISIONS.
SO WE'RE LEARNING A LOT ABOUT
WHAT UPDATING THIS PLAN LOOKS
LIKE THIS TIME OF YEAR.
AND PART OF THAT IS IMPERFECT
INFORMATION, FRANKLY.
SO WE STILL JUST DON'T HAVE
ENOUGH INFORMATION TO PROJECT
OUT FOR 2022 JUST YET.
BUT YEAH JUST PUTTING THAT ON
ALY'S COMMENTS.
>> AND I COMPLETELY UNDERSTAND
THAT ON THE UNDERSPEND.
AND NEW THINGS THAT HAVE BEEN
ARISEN.
I'M JUST EXPRESSING SORT OF AN
INTEREST IN MORE TRANSPARENCY
AROUND THE OLD OF HOLDS.
AGAIN, WE'VE MADE TOUGH
DECISIONS THIS YEAR, ABOUT
THOSE HOLDS.
AND WHEN IT'S REPORTING ON
THESE FINANCIAL PLANS.
AND IT FOCUSES ON THE DEFICIT,
WHICH IS AN IMPORTANT THING
THAT WE HAVE TO WRESTLE WITH,
NOT JUST FOR THIS YEAR, BUT FOR
THE LONG TERM, WITHOUT
REFLECTING THAT DIFFICULT WORK
THAT WE DID THIS YEAR TO NOT
STAND IN THE WAY OF THE
EXECUTIVE HOLDING ALMOST $20
MILLION IN SPENDING THAT THE
COUNCIL PLANNED.
I JUST -- IT MAKES ME WANT TO
-- MAKE SURE THAT THAT IS ALSO
REFLECTED IN THIS PLANNING
WORK.
AGAIN, UNDERSTAND THAT THERE IS
DEFINITELY MORE TO COME.
>> MY SECOND QUESTION.
MIGHT BE ANOTHER EXAMPLE OF ME
BEATING THE PROVERBIAL DEAD
HORSE ON SLIDE 14.
THEY CAN POSITION EXERCISE.
REALLY, APPRECIATE THAT THIS
WORK IS UNDER WAY.
I HAVE EXPRESSED IN THE PAST,
HOW IMPORTANT IT IS FOR US ALL
TO GET REALTIME INSIGHT INTO
PLACES THAT ARE BUDGETED BUT
NOT FILLED.
AND THEREFORE, ANOTHER LIKELY
AREA FOR UNDERSPEND AND THIS IS
EVEN MORE IMPORTANT, I THINK,
DURING THE GREAT RESIGNATION,
WHERE IT'S MORE DIFFICULT TO
FILL FUNDED POSITIONS.
I UNDERSTAND THE PICTURE WE
HAVE HERE IS NOT QUITE AS CLEAR
AS WE HAVE ASPIRATIONALLY
EXPRESSED OUR HOPES FOR.
AND THAT BY DESIGN, WE WANT TO
KEEP SOME POSITIONS THAT ARE
VACANT BUT FUNDED.
WE WANT TO HOLD THEM.
WE DON'T WANT TO -- BUT IT'S
AGAIN.
WE STILL WANT THE INFORMATION
ABOUT THEM, BECAUSE WITHOUT
SUGGESTING WE WANT TO CUT THEM.
BECAUSE WE DO RECOGNIZE THAT
THE FUNDING IN SOME OF THESE
POSITIONS IS NECESSARY TO
SUPPORT MORE THAN AVERAGE WORK
FORCE IN A PARTICULAR DIVISION.
BUT I JUST WANT TO EXPRESS MY
HOPE AT HAVING MORE INFORMATION
ABOUT VACANT POSITIONS.
TELL BE FORTHCOMING.
BECAUSE IT'S REALLY VALUABLE
FOR COUNCIL, AS WE BEGIN OUR
DELIBERATIONS ON BUDGET AND
JUST WONDERING IF YOU COULD SAY
ANYTHING MORE ABOUT YOUR
INSIGHTS OR INFORMATION THAT
YOU EXPECT TO BE AVAILABLE AS
IT RELATES TO THE REVIEW OF
VACANT POSITIONS AND OUR
EFFORTS TO BRING THE BUDGETS TO
CONVERSATION, INSTEAD OF WHAT
THE NEXT STEP THAT WILL NEED TO
BE TAKEN TO MAKE THIS
INFORMATION MORE ACCESSIBLE.
THANKS.
>> IS IT ALL RIGHT, CHAIR FI
JUMP IN TO RESPOND?
>> YES.
>> THANK YOU.
THOSE ARE GREAT QUESTIONS,
COUNCILMEMBER HERBOLD.
I WOULD SAY A COUPLE OF THINGS.
FIRST, WE HAVE A FULL POSITION-
BY-POSITION REVIEW UNDER WAY
WITH THE DEPARTMENTS.
SO THEY ARE PROVIDING US
CONTEXT ON WHY THOSE VACANCIES
EXIST.
AND WHAT THE PLAN IS, GOING
FORWARD FOR THOSE POSITIONS.
I WOULD SAY, THE HOLDS ON
POSITIONS AND HOLDING VACANCY
SAWRCHLZ IS REALLY TRICKY FROM
BUDGETING PERSPECTIVE.
IT'S A GREAT SORT OF ONE-TIME,
TOOL.
BUT UNLESS IT'S COUPLED WITH A
CONVERSATION AROUND ACTUALLY
CHANGING THE LINES OF BUSINESS
AND EXPECTATIONS AROUND AND
WHAT IT'S DOING TO THE
COMMUNITY.
IT'S NOT SOMETHING THAT CAN BE
DONE SUSTAINABLY IN AN ONGOING
WAY.
SO IT'S DEFINITELY SOMETHING
THAT WE ARE ABSOLUTELY USING
THROUGH THIS PROPOSED BUDGET.
IT'S NOT TELLING TALES OUT OF
SCHOOL.
I THINK YOU'D BE SURPRISED IF I
WASN'T USING THAT AS A TOOL.
IT IS REALLY IMPORTANT THAT WE
KEEP AN EYE TO OUR EXPECTATIONS
AROUND SERVICE DELIVERY
OVERALL.
SO THAT'S ONE PIECE.
THE OTHER THING I WOULD SAY IS,
THATVACANCIES IN THE THE ONLY
STORY.
WE HAVE BEEN WORKING WITH THE
CITY FINANCE DIVISION ON TOOLS
TO ENHANCE MONITORING ACROSS
DEPARTMENTS.
SO WE HAVE NOW WITH OUR NEWISH
FINANCIAL MANAGEMENT SYSTEMS.
IT'S ABOUT FOUR YEARS OLD.
BUT WITH THE PANDEMIC, IT STILL
FEELS NEW.
WE HAVE A LOT MORE DATA NOW.
WE HAVE CLOSER TO REALTIME
DEPARTMENT SPENDING.
ROLLING OUT TOOLS TO HELP BUILD
OUT THAT ACCOUNTABILITY, AND
ACTIVE MANAGEMENT ANY LITERACY
THROUGHOUT THE ORGANIZATION,
MANAGERS UP TO EXECUTIVES, TO
BE ABLE TO TRACK HOW THEY'RE
DOING IN REALTIME.
WE CAN HAVE THOSE
ACCOUNTABILITY WITH FINANCE AND
BUDGET DEPARTMENTS TOGETHER.
SOTO SAY, THIS DOESN'T MATCH
OUR EXPECTATIONS, WHAT'S GOING
ON HERE.
AND PROVIDES MORE INFORMATION
SOONER, SO THAT WE'RE IN LESS
OF A REACTIVE POSTURE.
THAT'S A GOAL.
THAT'S A BIG-TIME CHANGE
MANAGEMENT EFFORT.
SO IT'S GOING TO TAKE US TIME
TO GET THERE.
BUT I WANTED TO, YOU KNOW,
SHARE, THAT WE ARE PUTTING THE
TOOLS IN PLACE NOW, AND
STARTING THOSE TRAININGS
THROUGHOUT THE CITY, SO THAT WE
CAN START THAT UTILIZATION, AND
THEN START ROBUST MONITORING,
MOVING FORWARD.
AND HOPEFULLY, THE GOAL IS,
OVER TIME, AS YOU HEARD FROM
CENTRAL STAFF, WE'RE GOING TO
RIGHT THE SHIP.
IT IS GOING TO TAKE US SOMETIME
TO GET THERE.
BUT APPRECIATE THE GRACE AND
PATIENCE THAT EVERYONE HAS
SHOWN.
AND THE SUPPORT, FRANKLY, FOR
ROLLING OUT THOSE TOOLS.
>> LIKE TOM HAS AN ANSWER AS
WELL.
GO AHEAD, TOM.
>> THANK YOU, MADAM CHAIR.
AND JUST TO KIND OF BUILD ON
DIRECTOR DINGLEY'S RESPONSE AND
TO PROVIDE INSIGHT FOR THE
COMMITTEE.
THE VACANCY QUESTION IS
IMPORTANT TO CENTRAL STAFF
ANALYSIS.
AND ONE OF THE BUDGET QUESTIONS
THAT WE ARE ENVISIONING AT THIS
POINT IN TIME IS SOMETHING THAT
COMPARES THE COST OF SUPPORTING
THE CURRENTLY-FILLED POSITIONS
WITH THE BUDGET AMOUNT.
SO IT'S KIND OF APPROACHING THE
VACANCY QUESTION FROM A
SLIGHTLY DIFFERENT ANGLE.
SO IT'S BASICALLY SAYING, HOW
MUCH DO YOU NEED TO PAY FOR THE
POSITIONS YOU HAVE FILLED?
WHAT IS THE BUDGET?
AND WHAT IS THE DIFFERENCE?
AND IN SOME CASES, THERE MAY BE
INSUFFICIENT BUDGETS TO FILL
THE SYSTEMS.
BUT OTHERS WILL BE THE OTHER
WAY.
THERE WILL BE MORE BUDGET
AUTHORITY THEN, IS REQUIRED TO
FILL THOSE
CURRENTLY SUPPORTED POSITIONS.
HOPEFULLY THIS WILL PROVIDE THE
RIGHT LEVEL OF INFORMATION FOR
COUNCIL'S DECISIONS THIS FALL.
>> THANK YOU, BOTH.
APPRECIATE THAT.
>> AND I'LL UNDERSCORE THAT
THAT HAS BEEN A CONSTANT POINT
OF CONVERSATION AS WELL FOR ME.
RECOGNIZING THAT WE CONTINUE TO
PUT ADDITIONAL MONEY INTO
POSITIONS THAT ARE NOT FILLED
AND THEN THAT MONEY ROLLS OVER.
SO LOOKING FORWARD TO WORKING
WITH ALL OF YOU, AS WE CONTINUE
TO ADDRESS THIS.
PLEASE, PLEASE NOTE THAT THE
CAVEAT, ALONG WITH THE
SCENARIO, THAT WE OUTLINE WAS
JUST TO PROVIDE SOME ASSURANCE
THAT WE ARE LOOKING AT HIGHWAY
THAT HOW THAT WOULD IMPACT OUR
EXISTING REVENUE SPEND PLAN
ANDENTING TO FIRST MAINTAIN THE
INVESTMENTS AS CODIFIED IN
2020, IN TERMS OF AMOUNTS AND
SPENDING CATEGORIES.
SO THAT IS THE THING THAT I
REALLY WANTED FOLKS TO SEE.
THAT THOSE INVESTMENTS ARE
MAINTAINED.
ASK THAT THERE IS GOING TO BE
THE POTENTIAL IF THE SCENARIO
DOES CONTINUE TO GET ANALYZED
FOR US TO USE, A HIGHER-THAN-
ANTICIPATED RETURNS.
ONLY THAT AMOUNT FOR ONLY TWO
YEARS, TO THEN HELP WITH
PREVENTING AUSTERITY.
MUCH MORE ANALYSIS IS NEEDED,
THOUGH, TO CONTINUE TO LOOK AT
THE IMPACT OF INFLATION, FOR
EXAMPLE.
AND SOME OTHER ISSUES THAT WE
MAY WANT TO FACTOR IN.
SO PLEASE NOTE THE ASTERISK,
NEXT TO THIS CONVERSATION THAT
WE HAD, WHICH IS MUCH MORE WORK
IS TO BE DONE.
BUT I WANTED TO LET FOLKS KNOW
IN A TRANSPARENT WAY, IN
PARTNERSHIP WITH MANY OF THE
STAKEHOLDERS FROM JUMP START
PROGRESSIVE REVENUE COALITION,
THAT THERE IS A SHARED INTEREST
IN BOTH PRESERVING THE SPENDING
PLAN AND PREVENTING AGAINST
AUSTERITY IN THE VERY SHORT
TERM.
SO MORE WORK TO BE DONE ON
THAT, WITH THE ASTERISK THERE
THAT THERE IS A LOT OF ANALYSIS
STILL TO BE DONE.
ANY ADDITIONAL COMMENTS ON
THIS?
WE ARE OVER 1:00 P.M.
SO I WANT TO THANK YOU FOR YOUR
SHARED INTEREST IN THE
QUESTIONS.
AND THE PRESENTATIONS TODAY.
OUR NEXT COMMITTEE MEETING WILL
BE SEPTEMBER 7th, AT 9:30 A.M.
WE HAVE A RELATIVELY SHORT
AGENDA, MEMORANDUM OF
AGREEMENTS AND MODIFICATION.
THE GREEN NEW DEAL JUMP START
PROARPGZS FOR US TO CONSIDER.
THIS IS THE BE RECOMMENDATION
FROM THE GREEN NEW DEAL
ADVISORY BOARD ON HOW THEY
WOULD LIKE THEIR UNSPECIFIED
DOLLARS TO BE DEDICATED.
AND WE LOOK FORWARD TO
CODIFYING THEIR RECOMMENDATION.
AND THEN BECAUSE WE WEREN'T
ABLE TO GET TO THE QUARTERLY
SEATTLE RESCUE PLAN SPENDING
UPDATE, WE WILL HAVE THAT ON
THE LAST ITEM ON OUR AGENDA FOR
SEPTEMBER 7th.
WITH THAT, GREAT TO SEE YOU
ALL.
ENJOY THE REST OF YOUR
AFTERNOON.
TODAY'S MEETING IS ADJOURNED.