>> THE SELECT BUDGET COMMITTEE
WILL COME TO ORDER. IT IS 9:30.
I'VE BEEN NOTIFIED THAT COUNCIL
MEMBER SAKA IS STILL ON THE BUS
AND IT WILL BE WITH US BRIEFLY.
ALSO, COUNCILMEMBER [ INAUDIBLE
] HAS STEPPED OUT BRIEFLY.
THANK YOU ALL FOR BEING HERE.
WILL THE CLERK PLEASE CALL THE
ROLE.
>> COUNCIL MEMBER MORALES
>> HERE
>> COUNCIL PRESIDENT NELSON
>> PRESENT
>> COUNCIL MEMBER WOO
>> PRESENT
>> COUNCIL MEMBER HOLLINGSWORTH
>> HERE
>> COUNCIL MEMBER KETTLE
>> HERE
>> CHAIR STRAUSS
>> I AM PRESENT AND IF YOU
COULD CALL COUNCIL MEMBER MOORE
ONE MORE TIME.
>> COUNCIL MEMBER MOORE
>> PRESENTS
>> WONDERFUL.
>> EIGHT PRESENT.
>> THANK YOU ALL FOR BEING
PRESENT TODAY. I KNOW WE HAVE
SOME FOLKS WHO EITHER NEED TO
LEAVE AT 11:00, OR EXACTLY AT
11:30 SO I'M GOING TO TRY TO
KEEP US ON SCHEDULE, AS USUAL.
WE HAVE THREE ITEMS ON THE
AGENDA TODAY, PRESENTATIONS
THAT ARE PART OF THE SELECT
BUDGET SERIES. TODAY'S
PRESENTATIONS ARE ON THE
RESTRICTED REVENUES, AND SO WE
HAVE BEEN TALKING A LOT ABOUT
THE FACT THAT OUR GENERAL FUND
IS WHAT HAS THE STRUCTURAL
DEFICIT AT THIS POINT, THE
STRUCTURAL GAP, AND RESTRICTED
REVENUES ARE ADJACENT TO THE
GENERAL FUND IN THE SENSE THAT
WE HAVE PUT OUR OWN
RESTRICTIONS ON THESE FUNDS ,
SO THEY ARE NOT PURELY GENERAL
FUND BUT WE DO HAVE CONTROL
OVER THEM. WE WILL THEN HAVE A
PRESENTATION ABOUT THE WORK
THAT OCCURRED LAST YEAR FROM
THE REVENUE STABILIZATION
WORKGROUP AND OVERVIEW OF THEIR
WORK AS WELL AS WE WILL WRAP UP
WITH A SUMMARY OF THE INITIAL
BUDGET REVIEW, SO THIS WILL
WRAP UP PART OF OUR SELECT
BUDGET SERIES, THIS INITIAL
BUDGET REVIEW, WHICH WILL THEN
LEAD US TO GETTING READY FOR
THE AUGUST FORECAST AS WELL AS
THE IN-DEPTH ANALYSIS THAT EACH
OF US ARE DOING IN OUR OWN
OFFICES WITH THE BUDGET BOOK
CENTRAL STAFF HAS PRESENTED AND
THEN WE WILL BE GOING INTO THE
FALL BUDGET SESSION. BEFORE WE
BEGIN, IF THERE IS NO IT
DIRECTION, -- OBJECTION, THE
AGENDA WILL BE ADOPTED. THE
AGENDA IS ADOPTED. WE WILL MOVE
IN THE PUBLIC COMMENT PERSON.
WE HAVE ANYONE SIGNED UP OR IN
PERSON? THIS IS RARE. LET'S
LOVE IT FOR TODAY. SEEING AS WE
HAVE NO SPEAKERS REMOTELY OR
PHYSICALLY PRESENT, THE PUBLIC
COMMENT PERIOD IS NOW OPEN, AND
IS NOW CLOSED. WE WILL MOVE ON
TO THE FIRST AGENDA ITEM, AND
DEPUTY DIRECTOR CANOOCHEE --
PENNUCCI , AND TOM, IF YOU WANT
TO JOIN US. DEPUTY DIRECTOR
ANTON, AT YOUR PLEASURE,
PLEASE.
>> GOOD MORNING, COUNCIL
MEMBERS. I AM ALY PENNUCCI OF
THE CENTRAL STAFF. TOM WILL BE
TAKING THE LEAD ON THIS FIRST
ONE.
>> GOOD MORNING. TOM WITH
CENTRAL STAFF. I WILL START
WITH THE PRESENTATION WE'VE
PREPARED FOR YOU, THIS FIRST
PRESENTATION WILL BE COVERING
-- IT WILL BE AN OVERVIEW OF
REVENUE RESTRICTIONS IN THE
BUDGET AND I CAN SENSE THE
EXCITEMENT ABOUT DISCUSSING
GOVERNMENTAL ACCOUNTING TERMS
IS PALPABLE SO I WILL JUMP
RIGHT IN. SO, TO FOCUS THIS
DISCUSSION, THIS OUTLINE WILL
TAKE US THROUGH THE
RESTRICTIONS TO REVENUES AND
THE BUDGET, KIND OF THE FORM
THAT THEY TAKE, HOW THE CITY
MANAGES THESE RESTRICTIONS,
THEN USING THAT INTELLIGENCE ,
HOW THOSE RESTRICTIONS ARE
MAPPED IN THE BUDGET THEN
DRILLING DOWN INTO THOSE PLACES
WHERE THERE ARE FEWER
RESTRICTIONS , OR THE
RESTRICTIONS ARE LOCALLY
IMPOSED AND OFFER SOME OPTIONS,
CAVEATS TO CONSIDER WHEN
CONSIDERING THOSE OPTIONS AND
KEY TAKEAWAYS FROM THE
PRESENTATION.
>> THANK YOU. COLLEAGUES, FEEL
FREE TO ASK QUESTIONS AS WE GO.
IF WE GET CLOSE TO TIME, I WILL
SWITCH THE ORDER AND SAY CAN WE
HOLD TILL THE END.
>> TO START , WE WILL START AT
THE TOP, AND THERE ARE REALLY
TWO KIND OF BROAD WAYS THAT OUR
REVENUES ARE RESTRICTED IN THE
STATE OF WASHINGTON IN GENERAL,
BUT SPECIFICALLY, IN TERMS OF
OUR BUDGET. ONE IS A
RESTRICTION ON HOW REVENUES CAN
BE RAISED. THE FIRST THING TO
UNDERSTAND IS THAT CITIES
DON'T HAVE ANY NATURAL TAXING
POWER. THAT TAXING POWER IS
GIVEN THROUGH THE CONSTITUTION
TO THE STATE LEGISLATURE WHICH
THEN PROVIDES CITIES WITH THE
POWER TO TAX , AND THAT IS
ARTICLE 11, SECTION 12 OF THE
CONSTITUTION, SHOULD YOU CARE
TO LOOK AT IT. THERE ARE REALLY
TWO MAIN CATEGORIES OF TEXAS IN
THE STATE . ONE IS PROPERTY
TAXES, AND THEN ONE , WHEN YOU
THINK ABOUT PROPERTY TAXES AND
WORKING FROM THE FOUNDATION OF
YESTERDAY'S PRESENTATION FROM
DIRECTOR NOBLE IS HELPFUL
BECAUSE YOU'VE ALREADY HEARD
THE LAY OF THE LAND WITH
REGARDS TO PROPERTY TAX
RESTRICTIONS. ONE CONCEPT THAT
DID NOT,, BUT IS IMPORTANT, IS
THE CONCEPT OF UNIFORMITY
ESSENTIALLY SAYING THAT ALL
PROPERTY HAS TO BE TREATED
EQUALLY IN THE STATE OF
WASHINGTON, SO THAT PERVADES
ALL TAXATION CONCEPTS,
SPECIFICALLY PROPERTY TAXES.
ANOTHER TAXATION AUTHORITY THAT
WE HAVE IS EXCISE TAXATION SO
THIS IS BASICALLY I THINK OF IT
AS ANYTHING WHERE THERE IS A
RECEIPT, SO IF THERE IS AN
EXCHANGE, AND THERE IS AN
EXCISE TAX THAT CAN BE APPLIED.
HIGH LEVEL EXAMPLES, SALES
TAXES, BE ENDO TAXES, UTILITY
TAXES ARE EXAMPLES OF EXCISE
TAXES AND ALL OF THOSE TAXES
ARE PROVIDED FOR IN STATE LAW.
THERE IS ALSO A BROAD GRANT
EXCISE TAXATION AUTHORITY THAT
IS APPLIED IN STATE LAW, AS
WELL, SO THE ONES I MENTIONED
PREVIOUSLY ARE SPECIFICALLY
ENUMERATED IN STATE LAW THAT WE
CAN USE THOSE BUT WE ALSO HAVE
THIS BROAD ABILITY TO LEVY
EXCISE TAXES, AND WE HAVE. IN
2016 OR SO THERE WAS A FIREARMS
AND EMISSIONS TAX THAT WAS
PASSED. THAT WAS ACTUALLY
CHALLENGED IN THE COURTS AND WE
PREVAILED SO THAT AFFIRMED OUR
TAXATION AUTHORITY FOR THAT,
THEN MORE RECENTLY , THE
PAYROLL EXPENSE TAX SIMILARLY
PASSED UNDER THAT BROAD
AUTHORITY CHALLENGED IN THE
COURTS, UPHELD BY THE COURT OF
APPEALS, SO THAT'S KIND OF THE
TWO CATEGORIES OF TAX WE ARE
ALLOWED TO USE IN OUR BUDGET.
>> THANK YOU, TOM, AND I WANT
TO STATE FOR THE RECORD,
COUNCIL MEMBER SAKA HAS ARRIVED
AND IS WAITING TO SHARE THE
GOOD NEWS IS SEATTLE TODAY. OUR
SPORTS TEAMS HAD A LOT OF
WINNING LAST NIGHT. OUR STORM
WON, OR MARINERS ONE COURT --
WON AND BALLARD FC WON LAST
NIGHT AND YOU DIDN'T TELL ME
MY FRIENDS PETER AND DORIAN ARE
ON YOUR COACHING STAFF OVER
THERE SO MY LOVE JUST GOT YOUR
FOR YOUR TEAM.
>> YES, GO SEATTLE JUNCTION FC
AND SEATTLE SPORTS.
>> TOM, I WANT TO COME BACK TO
THE PRESENTATION AND SANG THE
TAXES WE HAVE DECIDED TO PURSUE
IN OUR CITY, WE HAVE FOUND TO
BE STANDING ON STRONG LEGAL
GROUND, WHICH IS WHY WE WON
THESE COURT CHALLENGES AND I
KNOW THERE ARE SOME OTHER
EXAMPLES THAT WILL COME IN THE
REVENUE STABILIZATION GROUP
THAT DON'T STAND ON SUCH FIRM
GROUND MOST LIKELY BECAUSE OF
THIS UNIFORMITY CLAUSE THAT WE
CAN'T CHARGE FOR ONE SPACE AT
A DIFFERENT RATE THAN ANOTHER
OR SOMETHING TO THAT DEGREE. IS
THAT ESSENTIALLY WHERE WE ARE
AT TODAY?
>> THAT IS CORRECT. THERE ARE
SOME DISCUSSIONS OF CONCEPT IN
THE STATE LEGISLATURE THAT MAY
NOT NECESSARILY BE IN ALIGNMENT
WITH THE UNIFORMITY CLAUSE BUT
THAT IS TO COME. IF WE COULD
LOOK AT THE NEXT SLIDE, NOT TO
GET TOO HUNG UP, I DID PUT A
LOT OF RATES AND INFORMATION IN
HERE, BUT THESE ARE THE HIGH
LEVEL LOOK OF THE MAXIMUM TAX
RATES WE ARE ALLOWED IN THE
VARIOUS TAXES PROVIDED FOR IN
THE STATE SO AGAIN,
YESTERDAY'S PRESENTATION
COVERED THIS REALLY WELL BUT
THERE WAS A $3.60 PER THOUSAND
DOLLARS OF ASSESSED VALUE CAP
ON OUR LOCAL PROPERTY TAXES AND
THEN WE ARE LIMITED IN HOW MUCH
THOSE CAN GROW TO 1% PER YEAR
PLUS THE VALUE OF NEW
CONSTRUCTION. SALES TAXES ARE
LIMITED TO 1% , WHICH IS A
BASIC AND OPTIONAL RATE, TWO
KIND OF DIFFERENT SIDES OF THAT
RIGHT. ONE IS .5% UP TO AN
ADDITIONAL .5% WHICH WE DO
AVAIL OURSELVES OF THE FULL
HALF PERCENT IN THE OPTIONAL
RATE. BE ENDO TAX , .2% IS THE
MAXIMUM RATE. HOWEVER AS YOU
CAN SEE IN THE FOOTNOTE, OUR
RATE IS ACTUALLY SLIGHTLY
HIGHER THAN THAT BECAUSE WHEN
THE LAW PASSED AROUND 1984,
THERE WAS A PROVISION FOR ANY
TAX RATE ALREADY HIGHER THAN
THAT CAP COULD STAY AT A HIGHER
RATE AND BE INCREASED UP TO 10%
AND WE HAVE DONE THAT. THESE
ARE THE AREAS WHERE WE HAVE TAX
AUTHORITY PRESCRIBED BY THE
STATE AND WE USE IT AT THE
MAXIMUM RATE. THESE ARE AREAS
WHERE I'VE BEEN TALKING ABOUT
TAXES BUT YOU WILL SEE A BIT
LATER, A LOT OF OUR BUDGET IS
FUNDED FROM FEES AND CHARGES IN
THE KEY PROVISION THERE IS,
THOSE FEES AND CHARGES ARE
INTENDED TO ETHICALLY PAY FOR
THE COST OF PROVIDING SERVICES
THEIR KIND OF A COST RECOVERY
MECHANISM, AND GENERATE REVENUE
TO USE FOR SOME OTHER PURPOSE,
KIND OF A PUBLIC GOOD AND THAT
IS A KEY DISTINCTION THAT IS
IMPORTANT TO UNDERSTANDING THE
RESTRICTIONS BECAUSE IT DRIVES
A LOT OF DISCUSSION AROUND
RESTRICTED FUNDS IN THE BUDGET.
>> BEFORE WE MOVE ON THERE,
TAKING A QUICK LOOK AT ONE AND
TWO I'M NOT GOING TO SPEND
TIME HERE ON THE DAIS TALKING
ABOUT IT. THE WAY THE CITY USES
IT IS PRETTY MUCH THE SAME.
THERE ARE SOME NUANCES
REGARDING PROGRAMMING AND IF
YOU ARE INTERESTED IN FINDING
OUT WHERE I WOULD SAY CHAT WITH
TOM OFF-LINE. REGARDING FEES
AND CHARGES, WHEN WE LOOK AT
COST RECOVERY I WILL USE A
POTTERY CLASS AT THE COMMUNITY
CENTER IS AN EXAMPLE. FOR FEE
RECOVERY, WE COULD ACCOUNT FOR
ALL OF THE BUILDING COSTS YOU
KNOW, EVERYTHING THAT GOES INTO
OPERATING THAT COMMUNITY CENTER
THAT ALLOWS FOR THAT POTTERY
CLASS, SO WE COULD, IN A SENSE,
REALLY HAVE A HIGH LEVEL OF
FINANCIAL NEED TO RECOVER COST
WISE IF WE ACCOUNTED IT THAT
WAY. HOWEVER, WHAT WE HAVE
FOUND IN THE PAST WHEN WE
RAISED THE FEES , ESPECIALLY IN
COMMUNITY CENTER PROGRAMMING
AND SWIM LESSONS FROM THE PARKS
DEPARTMENT OR OTHERS IS THAT IT
CREATES A LOT OF TURMOIL IN OUR
COMMUNITY BECAUSE THERE ARE A
LOT OF PEOPLE WHO RELY ON THOSE
CLASSES. IS MY UNDERSTANDING
CORRECT THAT WE COULD ACCOUNT
FOR EVERYTHING THAT GOES INTO
THAT COMMUNITY CENTER AND IF
IT'S NOT APPROPRIATE FOR YOU
TO SPEAK ABOUT THE BLOWBACK
THAT THE CITY HAS GOTTEN IN THE
PAST FOR RAISING FEES ON THESE
PROGRAMS IT'S FINE BUT CAN YOU
SHARE MORE THERE?
>> ABSOLUTELY. WE ARE LIMITED
AT FULL COST RECOVERY, THOUGH
POLICY DECISIONS TO LEVY A FEE
AT LOWER THAN COST RECOVERY,
WHICH I BELIEVE IS WHAT YOU
WERE TALKING ABOUT FOR POLICY
REASONS, IS PERFECTLY ALLOWED
AND YOU KNOW, MAYBE FAVORED IN
SELECT CIRCUMSTANCES BUT YES.
IF THERE IS AN ELEMENT OF THE
BUILDING COST OR OVERHEAD FROM
OTHER DEPARTMENTS, ALL OF THAT
CAN BE INCLUDED IN THE
CALCULATION OF THE COST OF
PROVIDING THAT SERVICE, SO THAT
IS ONE OF THE AREAS WHERE WE
CAN LOOK AT IT AND DETERMINE
WHETHER OR NOT WE ARE
RECOVERING FULL COST AND IF WE
WANT TO. IF WE WANT TO MAKE A
DIFFERENT DECISION OR BECAUSE
INFLATION, THE FEE HAS NOT KEPT
PACE WITH COSTS, SO THERE IS
SOME ELEMENT OF DECISION TO BE
MADE THERE BASED ON POLICY.
BUT, THE LIMIT IS , IT CANNOT
EXCEED. THE MINUTE IT EXCEEDS
THE FULL COST IT BECOMES A TAX
AND IS MORE LIKELY TO BE
CHALLENGED.
>> THANK YOU FOR THE QUESTION.
I WOULD JUST ADD PERIODICALLY
AND ONE OF THE PRESENTATIONS IS
ONE OF THE TOOLS I HIGHLIGHTED
LOOKING AT FEES AND CHARGES AND
WHETHER OR NOT THEY ARE
ACHIEVING COST RECOVERY IS A
GOOD EXERCISE TO PERIODICALLY
GO THROUGH, BUT THERE HAS BEEN
, AS CHAIR STRAUSS IS
HIGHLIGHTING, THERE ARE POLICY
REASONS WHY IN THE PAST THE
CITY HAS LED TO THOSE FEES AND
CHARGES AND DECIDED NOT TO
INCREASE THEM OVER RECOVERY
BECAUSE IT WOULD MAKE ACCESS TO
THOSE SERVICES COST PROHIBITIVE
FOR LARGE PORCHES -- PORTIONS
OF OUR COMMUNITY . THERE ARE
POLICIES TO WEIGH AND BALANCE
BUT IT'S GOOD PRACTICE TO
PERIODICALLY REVIEW THOSE AND
CONFIRMED THAT DECISION STILL
MAKES SENSE IN THE CONTEXT OF
WHATEVER IS GOING ON AT THE
MOMENT.
>> IN THE PARKS EXAMPLE IS
DIFFERENT FROM THE PERMITTING
EXAMPLE. OUR PERMITTING STAFF
ARE FUNDED BY THE REVENUES THEY
RECEIVE, AND COUNCIL MEMBER
MORALE IS ' LAND USE COMMITTEE
TODAY, THIS GOING TO BE MORE
INFORMATION THEN AS WELL ABOUT
HOW WE ARE FUNDING THE STAFF.
SO THERE'S A SPECTRUM IS ALL
I'M SAYING.
>> SO BASICALLY YOU ARE SAYING
THIS IS THE EQUIVALENT OF THE
LIMIT THAT COSTCO GOES THROUGH
REGARDING THE COST OF THEIR
HOTDOG. DO THEY STAYED ABOUT 50
OR DO THEY GO HIGHER? AND IF
IT'S FOR A PERMIT THAN ATTIRE.
>> THANK YOU.
>> THOSE ARE KIND OF SOME OF
THE LIMITS ON HOW WE CAN RAISE
REVENUE. THE NEXT PIECE OF THE
PUZZLE IS THE RESTRICTIONS ON
HOW THOSE REVENUES CAN BE USED,
SO THERE ARE A VARIETY OF
RESTRICTIONS THAT CAN APPLY TO
HOW REVENUES CAN BE USED . FROM
THE TOP, THE STATE CAN LIMIT
THE USES . A FEW EXAMPLES, NOT
EXHAUSTIVE, FOR EXAMPLE,
COMMERCIAL PARKING TAX CAN ONLY
BE USED FOR TRANSPORTATION
PURPOSES AS PRESCRIBED BY THE
STATE. SIMILARLY , REET AND
TRENDY ONE -- ONE OR TWO
REVENUES CAN ONLY BE APPLIED TO
CERTAIN REVENUES. FUNDING FROM
OTHER AGENCIES COME WITH
STRINGS ATTACKED -- ATTACHED.
WE RECEIVE THEM IN THE BUDGET
AND THEY ARE FOR SPECIFIC
PURPOSES IN MOST CASES. DURING
THE PANDEMIC THERE WERE LARGE
FUNDS FROM THE AMERICAN RESCUE
PLAN ACT THAT CAME WITH LESS
SPECIFIC RESTRICTIONS BUT EVEN
THOSE ARE KIND OF RESTRICTED
AND HOW THEY CAN BE USED TO
DEAL WITH COVID EMERGENCY
NEEDS, SO THAT IS KIND OF A WAY
WHERE WE GET THE MONEY AND IT
IS FOR A SPECIFIC I TIED WITH
THE FUNDING AGREEMENT. PERMIT
AND LICENSE FEES ARE RESTRICTED
TO RECOVERING THE COST OF THE
REGULATED ACTIVITY, SO ALL THE
WORK THAT GOES INTO DOING THAT
REGULATION. THOSE OF THE
EXTERNAL RESTRICTIONS, I GUESS.
THE NEXT TWO ARE OUR MORE
INTERNAL OR LOCALLY OPPOSED --
IMPOSED RESTRICTIONS. COMING
OFF OF YESTERDAY'S
PRESENTATION, WE HAVE QUITE A
FEW VOTED LEVIES GIVEN THE
CHANGE TO THE PROPERTY TAX
STRUCTURE FROM INITIATIVE 747.
WE NOW RELY ON QUITE A FEW
VOTED LEVIES AND EACH TIME ONE
OF THOSE LEVIES IS ADOPTED BY
THE PUBLIC, AND INCLUDE SOME
LEVEL OF INDICATION OF WHAT
THOSE FUNDS ARE TO BE USED FOR
AND SO THOSE ARE IMPOSED BY THE
VOTERS BUT THEY USUALLY COME
WITH TIME CONSTRAINTS, TIME
LIMITS AND DIFFERENT DECISIONS
CAN BE MADE IN THE FUTURE, SO
RESTRICTED FOR A TIME, THEN
SUBJECT TO REVIEW AND FINALLY,
AND THIS IS WHERE LATER ON WE
WILL GET TO THE DISCUSSION OF
WHERE THERE ARE OPTIONS, ARE
THE CITY ORDINANCES. THESE ARE
THE CASES WHERE THE CITY HAS
IMPOSED A TAX AND AS PART OF
THAT TAX, THERE IS SOME
EARMARKING OF HOW THOSE MONIES
CAN BE USED IN SO THOSE ARE
DECISIONS THAT CAN BE CHANGED ,
AND WE WILL GO INTO KIND OF THE
TRADE-OFFS AND CAVEATS TO
CONSIDER IN THAT, BUT IT IS AN
AREA WHERE THERE IS A
RESTRICTION THAT WE HAVE THAT
DOES CONTROL HOW FUNDS ARE
ALLOCATED IN THE BUDGET BUT
WITH AN ORDINANCE CHANGE,
DIFFERENT DECISIONS CAN BE MADE
WITH TRADE-OFFS. SO, I WILL
MOVE TO HOW WE MANAGE THESE
RESTRICTIONS OF THIS IS WHERE
WE GET INTO THE FUNDAMENTAL
ACCOUNTING STUFF BUT IT IS
PRETTY LIGHT AND HIGH LEVEL, SO
THE CITY STAFF BUDGET OFFICE,
OFFICE OF FINANCE, WE RELY ON A
SYSTEM OF ACCOUNTS REFERRED TO
AS A GENERAL LEDGER. THE
GENERAL LEDGER IS THE STRUCTURE
THAT GUIDES AND HELPS US MOP
THE RESTRICTIONS , THE VARIOUS
MEETING OF THE RESOURCES WITH
THE NEEDS AND THE BUDGET AND SO
AT A HIGH LEVEL YOU HAVE THE
FUND AND YOU'VE HEARD A LOT
ABOUT THE GENERAL FUND BUT
THERE ARE QUITE A FEW OTHER
FUNDS THAT ARE INVOLVED IN THE
CITY BUDGET, AS WELL, AND
WITHIN EACH ONE OF THESE FUNDS
IS A SET UP FOR SPECIFIC
ACCOUNTS EACH OF WHICH COMES
WITH ITS OWN RESTRICTION. IT IS
REQUIRED BY STATE LAW THAT WE
ACCOUNT THIS WAY. IT IS ALSO A
STANDARD FROM THE GOVERNMENTAL
ACCOUNTING STANDARDS BOARD,
WHICH ACCREDITS OUR BUDGET TO
ENSURE WE ARE IN LINE WITH
GOVERNMENT MENTAL ACCOUNTING
STANDARDS. THE SIMPLISTIC
LEVEL, THIS HELPS US MANAGE HOW
RESTRICTIONS ARE IMPOSED IN THE
BUDGET TO ENSURE WE DON'T
VIOLATE THEM AND RUN AFOUL OF
STATE LAW.
>> TOM, BEFORE YOU MOVE ON TO
THE NEXT SLIDE, ANYTHING ELSE
ON THIS? RIGHT NOW IT IS MY
UNDERSTANDING THAT REVENUES
FROM JUMPSTART GO INTO A FUND
AND IN THE PAST WHEN WE HAVE
ALLOWED JUMPSTART TO SUPPLEMENT
THE GENERAL FUND, WE PULL THOSE
FUNDS OUT OF THERE AND FROM THE
JUMPSTART FUND THAT IS HOW WE
FUND THE PROGRAMS THAT ARE
OUTLINED WITHIN THE ORDINANCE.
IS THAT GENERALLY CORRECT?
>> THAT IS CORRECT. YES.
>> AND THAT IS DIFFERENT THAN A
FEW YEARS AGO WHEN I WAS DOING
MY TREE PROTECTION WORK I FOUND
THAT THE PENALTIES FROM ILLEGAL
TREE CUTTING WERE JUST BEING
DEPOSITED INTO THE GENERAL FUND
AND WE WORKED TOGETHER WITH
YOLANDA TO CREATE AN ACCOUNT OR
A LINE. CAN YOU TELL ME THE
DIFFERENCE BETWEEN THE
JUMPSTART FUND AND THAT TREE
ACCOUNT THAT WE CREATED?
>> ABSOLUTELY. I'M NOT REALLY
FAMILIAR WITH THE HISTORY, BUT
HAVING AN ACCOUNT WITHIN THE
GENERAL FUND CAN BE MANAGED IN
THAT WAY . IT'S JUST MORE
DIFFICULT TO DO SO, BASICALLY,
BECAUSE YOU HAVE THIS WHOLE
FUND THAT IS SUPPOSED TO BE
UNRESTRICTED, BUT THERE ARE
PIECES OF IT THAT WE WANT TO
ENSURE BE USED FOR A SPECIFIC
PURPOSE. THE PAYROLL EXPENSE
START FUND, THE JUMPSTART FUND,
IT'S EASIER TO SEE THE
RESTRICTION BECAUSE IT IS
WITHIN THE BOUNDARIES OF THE
FUND. NOT TO SAY THAT IT CANNOT
BE DONE THAT WAY , AND IN FACT,
DEPENDING ON THE SIZE OF THE
REVENUE THERE MAY HAVE BEEN THE
DECISION TO, INSTEAD OF
CREATING ITS OWN FUND, MANAGER
THAT THE ACCOUNT LEVEL. THAT IS
NOT AGAINST THE RULES ,
HOWEVER, HAVING SOMETHING IN
ITS OWN FUND MAKES IT EASIER TO
SEE HOW THE RESTRICTIONS ARE
BEING MANAGED, BUT THERE IS A
DIFFERENCE BETWEEN THE TWO.
>> I WOULD JUST ADD, SO THERE
ARE TRADE-OFFS AND WITH
DIFFERENT SIZES OF FUNDS, YOU
WANT TO CONSIDER THOSE
TRADE-OFFS, SO THE TREE ACCOUNT
, FOR LACK OF A BETTER WORD, I
DON'T THINK WAS ANTICIPATED TO
GENERATE THE AMOUNT OF MONEY
THAT THE JUMPSTART PAYROLL
EXPENSE TAX GENERATES AND SO
THERE ARE SOME ADMINISTRATIVE
BURDENS FOR OUR FINANCE
DEPARTMENT AND OUR BUDGET
OFFICE IN CREATING NEW FUNDS
AND MANAGING THEM SO THAT IS
THE BALANCE IN CONVERSATION
THAT WE ARE HAVING WITH THE
EXECUTIVE BRANCH BECAUSE
CREATING A SEPARATE FUND DOES
PROVIDE BETTER TRANSPARENCY AND
VISIBILITY ON HOW THOSE FUNDS
ARE BEING RAISED AND USED IN
THE BUDGET. IT'S HOW WE BUDGET
AT THE BUDGET CONTROL LEVEL, IT
SIGNALS WHAT FUNDS, SO YOU CAN
SEE CLEARLY WHAT IS COMING OUT
OF THE JUMPSTART FUND . TO
DRILL DOWN TO HOW MUCH MONEY
THE TREE REGULATIONS ARE
RAISING AND WHERE THAT MONEY IS
GOING WOULD REQUIRE SOME EXTRA
LAYERS OF ANALYSIS AND REVIEW
AND IS AND AS QUICKLY VISIBLE,
BUT AGAIN, THOSE ADMINISTRATIVE
BURDENS ARE REAL AND SO
CONSIDER THE TRADE-OFFS AS YOU
MAKE DECISIONS IN THAT SPACE.
>> AND I SEE ON THIS LAST LINE
HERE WHICH IS WHEN I INITIALLY
REQUESTED THAT TREE ACCOUNT I
GOT A LOT OF PUSHBACK BECAUSE
THE PENALTIES WERE NOT RAISING
A LOT OF FUNDS AND I KNOW THAT
WAS BEFORE WE TRUST THE -- PAST
THE TREE PROTECTION ORDINANCE
WHICH INCREASED THE FEES . IT
CREATES MORE TRANSPARENCY BUT
IS HARDER TO MANAGE. COUNCIL
PRESIDENT.
>> THIS IS A DISCUSSION BETWEEN
US AROUND TRANSPARENCY OF
RESTRICTED FUNDS EATING THEIR
OWN FUND BECAUSE THEY DO NOT --
FOR EXAMPLE, THE JUMPSTART
FUND. LET'S SAY IT'S
GENERATING 300 MILLION IN
REVENUE. THAT FUND IS USED FOR
A LOT OF EXPENSES IN OED,
HOUSING, ET CETERA ACROSS THE
BOARD, SO THESE ARE THE
EXPENDITURES REALLY DO -- BUT
HELP A LOT OF OUR DEPARTMENTS
AND A LOT OF OUR NEEDS, BUT
THEY ARE NOT SEEING THAT SOURCE
OF REVENUE IS NOT SEEN IN THE
LINE THAT SHOWS REVENUE ON THE
CHARTS, SO WHEN YOU LOOK AT
REVENUE VERSUS EXPENSES, THERE
IS THAT BIG GAP. I THINK IT'S
NOT 258 MILLION. IF JUMPSTART
WAS FACTORED IN THAT, WHICH IS
A SOURCE OF MONEY WE USE FOR A
LOT OF THINGS, THAT GAP WOULD
NOT BE APPARENT, SO THERE IS
TRANSPARENCY IN TERMS OF HOW
YOU FIGURE ALL OF THE EXPENSES
WITHIN A FUND. YES, I
COMPLETELY AGREE THAT IS
IMPORTANT. I HAVE ALSO SAID
THAT IT IS HARD TO UNDERSTAND
THE RESOURCES AND REVENUES THE
CITY HAS ONE THOSE FUNDS ARE ON
THEIR OWN AND NOT VISIBLE TO
THE PUBLIC. THE SUITE AND
BEVERAGE TAX IS MUCH SMALLER,
AND OTHER RESTRICTED FUNDS, AS
WELL SO I SEE ACCOUNTABILITY
WHEN THERE IS TRANSPARENCY. IT
WOULD BE GREAT IF THE PUBLIC
CAN SEE BOTH LINES AND I
UNDERSTAND THE EXPENSES THAT
COME OUT OF THE JUMPSTART FUND
ARE NOT FIGURED INTO THAT
EXPENSE LINE ON THE THING, BUT
WHEN IT COMES TO UNDERSTANDING
OUR BUDGET SITUATION OVERALL,
THAT'S SOMETHING I'VE BEEN
TALKING ABOUT.
>> THE CHART YOU'RE TALKING
ABOUT IS THE SPECIFIC CHART WE
HAVE PRODUCED OVER THE YEARS
SPECIFIC TO THE GENERAL FUND
AND SO NEITHER THE REVENUES NOR
THE EXPENDITURES RELATED TO
JUMPSTART OUR SHOWING UP THERE.
IF WE HAD THAT ALL MERGED
TOGETHER USING CURRENT LAW, THE
GAP WOULD NOT CHANGE. THAT
CALCULATION WOULD NOT CHANGE
BECAUSE RIGHT NOW, CURRENT LAW
SAYS THAT FUTURE EXPENDITURES
ARE NOT TO BACKFILL OTHER
GENERAL FUND EXPENSES, AND SO
UNTIL AND UNLESS THOSE POLICIES
ARE CHANGED, MERGING THOSE TWO
NUMBERS TOGETHER WOULD NOT
IMPACT THE PROJECTED ISSUE, AND
SO , BUT, FOR EXAMPLE, IF THE
COUNCIL CHOSE TO MODIFY THE
JUMPSTART FUND POLICIES TO
ALLOW THE HIGHER THAN
ANTICIPATED IN 2020 REVENUES AS
AN ONGOING GENERAL FUND USE, SO
IT WAS A BYLAW -ASSUMED
TRANSFER, YOU WOULD SEE THAT
GAP START TO CLOSE IN THE OUT
YEARS BECAUSE RIGHT NOW WE ARE
PROJECTING ABOUT $180 MILLION
OF JUMPSTART REVENUE THAT IS
HIGHER, SO THE PROJECTED
DEFICIT FOR 2025 IN THE GENERAL
FUND THAT IS SOMEWHERE AROUND
250, 264 , SOMEWHERE AROUND
THERE WOULD NARROW BY ABOUT
$180 MILLION BUT WOULDN'T CLOSE
COMPLETELY.
>> I WANT EVERYBODY TO
RECOGNIZE THAT I'M NOT
SUGGESTING WE PUT IT ALL IN ONE
POT. I'M SIMPLY SAYING THAT I
THINK IT'S GOOD FOR THE CITY
TO SHOW ALL THE RESOURCES WE
HAVE AT OUR DISPOSAL AS WE GO
FORWARD TO FIGURE OUT HOW WE
ARE GOING TO DEAL WITH THE
DEFICIT BUT IS NOT SOMETHING I
AM RECOMMENDING AND I RECOGNIZE
THE FINANCE COMMITTEE HAS
RECOMMENDED AGAINST THAT, AS
WELL, SO I AM IN AGREEMENT WITH
THE STATUS QUO.
>> SO. QUESTIONS? DRILLING INTO
THE MANAGEMENT OF THE
RESTRICTIONS, LET'S TALK ABOUT
THE CATEGORIZATION OF THE
VARIOUS ACCOUNTS THAT GO INTO
THESE FUNDS AND HOW THE
RESTRICTIONS OF THE ACCOUNT
LEVEL DRIVE HOW RESTRICTIONS
ARE MANAGED AT THE FUND LEVEL
BASED ON WHERE EACH ONE OF
THESE FUNDS RECEIVES ITS MONIES
SO AGAIN, ONE CATEGORY IS
INTERGOVERNMENTAL SO THESE NEED
TO BE MANAGED AND ACCOUNTED FOR
SUBJECT TO THEIR SERVICE
AGREEMENT BY WHICH WE ARE
RECEIVING THOSE FUNDS. USER
FEES AND CHARGES , A BIG
CATEGORY IS UTILITY FUNDS, SO
THAT IS A VERY RESTRICTIVE
BECAUSE THEY ARE FOR THE
PURPOSE OF RECEIVING WATER
SERVICE AND WATER ITSELF AND
ELECTRICITY AND SOLID WASTE .
LICENSE AND PERMITS FEES ARE
RESTRICTED TO ADMINISTRATIVE
COST RECOVERY SO THINK OF
BUILDING PERMITS AND ZONING
PERMITS, THINGS LIKE THAT.
OTHER FINANCING SOURCES LIKE
BONDS AND TRANSFERS ARE
RESTRICTED. BONDS ARE
RESTRICTED TO USE FOR CAPITAL
AND TRANSFERS ARE REALLY JUST
KIND OF A FLOW OF FUNDS FROM
ONE FUND TO THE OTHER . USUALLY
FOR A SPECIFIC PURPOSE. NOW WE
ARE GETTING INTO PLACES WHERE
THE RESTRICTIONS ARE MAYBE A
LITTLE BIT LOOSER, SO
MISCELLANEOUS . A LARGE
CATEGORY THERE IS INTEREST. IN
GENERAL, INTEREST EARNINGS ARE
CREDITED TO THE FUNDS THAT
EARNS THEM. INTEREST BECOMES
RESTRICTED ON THEN PAYROLL
CONTRIBUTIONS, SO A LOT OF THE
MONEY THAT FLOWS IN THIS
CATEGORY IS THINGS LIKE
RETIREMENT CONTRIBUTIONS OR
WORKER'S COMP. OR THINGS LIKE
THAT, WHICH ARE HIGHLY
RESTRICTED FOR A VERY SPECIFIC
PURPOSE AND THEN FINALLY TAXES.
YOU WILL SEE THE THEME OF THIS
IS A LOT OF TAXES ARE REALLY
THE UNRESTRICTED CATEGORY BUT
THERE ARE EXCEPTIONS AS I
INDICATED, SOMETIMES THE STATE
APPLIES RESTRICTIONS AND AS WE
DO, SOMETIMES THE CITY APPLIES
RESTRICTIONS AS WELL, SO THAT
GIVES A REALLY HIGH-LEVEL
FLAVOR OF CATEGORIES OF REVENUE
RECEIVED AND HOW MUCH OF IT IS
RESTRICTED THAT TAXES THOSE
PLACES WHERE THERE ARE FEWER
RESTRICTIONS AND I WILL CLOSE
THIS SLIDE WITH ONE STATEMENT.
ALL THAT BEING SAID, ALL MONEY
RECEIVED IS PURPOSE SO THAT IS
GIFT OF FUNDS CLAUSE YOU ARE
LIKELY FAMILIAR WITH SO EVERY
DOLLAR WE RECEIVE HAS TO GO
TOWARD A GOVERNMENT PURPOSE.
>> COUNCILMEMBER MOORE HAS A
QUESTION.
>> I MAY BE A FEW SLIDES BACK,
BUT MY QUESTION IS, THE
MANDATORY HOUSING AFFORDABILITY
ACT. WHEN THERE ARE IN LIGHT OF
FUNDS , THE MANDATORY
AFFORDABLE HOUSING ACT IN BLUE
MONEY IS, WHERE DOES THAT GO?
>> I DO BELIEVE THAT IS A
RESTRICTED FUND.
>> I BELIEVE THAT IS ONE OF THE
SOURCES OF FUNDS IN THE LOW
INCOME HOUSING FUND.
>> I THINK THAT'S IN THE
AFFORDABLE HOUSING FUND THAT WE
CAN DOUBLE CHECK AND FOLLOW UP
WITH YOU ON THAT.
>> I KNOW OTHER QUESTIONS ON
THIS SLIDE, TOM.
>> A THIRD OF THE RESTRICTIONS,
THIS IS A GRAPHICAL VIEW OF THE
ACCOUNT CATEGORIES TO SHOW HOW
MUCH WE GET FROM THESE VARIOUS
CATEGORIES, SO YOU WILL SEE I
HAVE SHADED THE THINGS THAT ARE
MOST RESTRICTED WITH THIS
BLUE-GREEN COLOR . THOSE ARE
YOUR RESTRICTED CATEGORIES, THE
LARGEST OF WHICH ARE CHARGES
FOR FOOD AND SERVICES, WHICH
THE BULK OF THAT IS GOING TO BE
THE RATEPAYER DOLLARS WHICH ARE
RESTRICTED , AND UNRESTRICTED
CATEGORIES ARE IN FEES AND
FINES, WHICH ARE UNRESTRICTED
BY THE STATE, BUT WE CAN APPLY
SOME RESTRICTIONS TO THEM
LOCALLY AND THEN THE LARGEST,
OF COURSE, IS TAXES AND THE ONE
LARGEST PLACE WHERE WE IMPOSE
OUR OWN LOCAL RESTRICTION IS
THE JUMPSTART PAYROLL EXPENSE
TAX. THESE NUMBERS ARE 2024
ADOPTED BUDGET NUMBERS JUST FOR
THE SAKE OF DISPLAY, TO GIVE
YOU A SENSE OF PROPORTIONAL
CHUNKS OF THE BUDGET THAT EACH
ONE OF THESE CATEGORIES BRINGS.
NEXT SLIDE.
>> BEFORE WE MOVE ON, THESE ARE
ALL FUNDS THAT WE HAVE, THESE
ARE ALL REVENUES AND SO
PIGGYBACKING OFF OF COUNCIL
PRESIDENT, WHEN WE LOOK AT
THIS, THESE ARE ALL THE
REVENUES WE RECEIVE IN ALL OF
THE EXPENDITURES THAT WE USE ,
THIS BUDGET BALANCES AND WE ARE
LEGALLY REQUIRED TO MAKE OUR
BUDGET BALANCE EACH YEAR SO
THESE ARE ALL OF OUR FUNDS. WE
USE THESE FUNDS EVERY YEAR AND
WE BALANCE OUR BUDGET BUT THEN
THE QUESTION WE ARE FOCUSING ON
IS THE GENERAL FUND
SPECIFICALLY.
>> PRECISELY, SO THIS IS THE
2024 ADOPTED BUDGET THAT WAS
PART OF THE BALANCED 2024
ADOPTED, NOT THE EXPENDITURES,
BUT THE EXPENDITURES DERIVED
FROM THE SOURCE THROUGH THE
MANAGEMENT OF FUNDS WHERE WE
RECEIVE THE REVENUE AT A HIGH
LEVEL IN THE GENERAL LEDGER
FROM ALL THESE CATEGORIES THAT
ACCOUNTING PUTS THEM IN THE
PROPER PLACE ON THE AND THEY
ARE AVAILABLE TO SPENDING
THROUGH THE FUND STRUCTURE,
WHICH WE WILL TALK ABOUT NEXT.
>> AT A HIGH LEVEL WHEN YOU'RE
LOOKING AT THIS PIE CHART , I
DON'T KNOW IF THAT IS RUST
COLORED, BUT THE UNRESTRICTED
CATEGORY THAT INCLUDES THE
PAYROLL EXPENSE TAX, THE BULK
OF THAT IS OUR GENERAL FUND,
RIGHT? SO THAT IS REALLY THE
SLICE OF THE PIE FOR THERE IS
MOST LOCAL CONTROL, SO THAT
$2.3 BILLION , ABOUT 1.8 OF IT
IS GENERAL FUND AND ANOTHER
LARGE CHUNK IS THE JUMPSTART
FUNDS AND SOME OF OUR OTHER
SMALLER FUNDS , BUT THAT IS
REALLY FOR THE COUNCIL HAS THE
MOST AUTHORITY TO MAKE
DECISIONS, DIFFERENT DECISIONS
YEAR TO YEAR ON HOW TO USE
THOSE FUNDS, SOME OF WHICH
MIGHT REQUIRE AMENDING POLICY.
>> IF I COULD ADD TO THAT , IT
IS NOT EXACTLY THAT IT IS
GENERAL FUND BUT HEAVY HITTERS
LIKE SALES TAX ARE IN THAT REST
CATEGORY AND ALSO LOCAL LEVIES
WILL BE IN THERE, AS WELL, TOO
, AND THEN JUMPSTART PAYROLL
EXPENSE TAX IN A FEW SMALL
TAXES SO HOPEFULLY YOU WILL SEE
WITH THE NEXT PRESENTATION HOW
WE TRANSITION FROM THE ACCOUNTS
TO THE FUNDS, SO YOU CAN THINK
ABOUT IT AT THE FUND LEVEL OF
HOW TO MANAGE AND UNDERSTAND
CHOICES ABOUT THE RESTRICTIONS.
>> YOU SAID THE LOCAL LEVIES
ARE IN THAT REST COLORED MOST
FREE TO USE AS YOU WILL BUCKET,
BUT ISN'T THAT SET BY BALLOT
MEASURE?
>> YES, AND AS A FINAL BULLET,
I TRIED TO TEASE OUT THE FACT
THAT THEY ARE LARGELY
UNRESTRICTED, BUT THERE ARE
SOME RESTRICTED CATEGORIES, SO
IT IS A MIXED BAG THAT WE
MANAGE WITH THE FUND STRUCTURE
SPECIFICALLY TRUE CALLING AND
SPECIAL REVENUE FUNDS BECAUSE
THOSE LEVIES ARE FOR A SPECIFIC
PURPOSE ACCORDING TO THE BALLOT
TO PUT THEM IN PLACE.
>> I THINK THE REASON WE SAVER
COUNSEL HAS THE MOST CONTROL AS
YOU ALL ARE DEBATING THE
CURRENT TRANSPORTATION LEVY,
YOU ARE CONSIDERING HOW AND IN
WHAT WAYS YOU WANT TO PUT
RESTRICTIONS ON HOW THOSE FUNDS
CAN BE SPENT SO WHAT IS THE
QUESTION YOU'RE PUTTING OUT TO
THE VOTERS? SO, COUNCIL MEMBER
SAKA IS BALANCING THOSE
RESPONSIBILITIES AND HOW TO
MANAGE THAT IN THE FUTURE.
>> OKAY. NOW WE ARE GOING TO
MOVE -- WE HAVE COVERED THE
REVENUES OF THE SPECIFIC
REVENUE ACCOUNTS AND NOW WE
WILL TALK ABOUT THE FUNDS THESE
REVENUES GO INTO BECAUSE THIS
IS THE HIGHEST LEVEL THAT THESE
RESOURCES ARE MANAGED SO THERE
ARE SEVEN MAJOR FUND
CATEGORIES. GENERALLY BASICALLY
ORGANIZE FOR MORE RESTRICTIVE
TO LESS BUT REALLY, THE TOP
FIVE ARE ALL VERY RESTRICTED .
SPECIAL REVENUES ARE RESTRICTED
BUT THERE ARE OPTIONS AND THE
GENERAL FUND RESOURCES ARE
AVAILABLE FOR ANY LEGAL PUBLIC
PURPOSE. FIDUCIARY FUNDS ARE
THINGS THAT ARE MANAGED IN A
TRUSTEE CAPACITY SO YOU CAN
THINK ABOUT THESE LIKE THE
RETIREMENT FUND FOR THOSE
DOLLARS ARE FROM CITY AND
EMPLOYEE CONTRIBUTIONS TO PAY
FOR THE DEFINED BENEFIT
RETIREMENT PROGRAM YOU HAVE IN
THE CITY, SO ENTERPRISE FUNDS,
SO THESE ARE THINGS LIKE
UTILITIES AND SDCI. THEY ARE
MANAGED LIKE A BUSINESS, SO
BUSINESS ENTERPRISE UTILITIES ,
SDCI, VERY RESTRICTED FUNDS.
INTERNAL SERVICE FUNDS YOU CAN
THINK ABOUT FAS AND SD HR.
THESE ARE SORT OF INTERNAL CITY
BUSINESSES SO THE SAME CONCEPT
WHERE THESE MONIES ARE MANAGED
FOR A SPECIFIC PURPOSE, TO
PROVIDE SERVICES TO OTHER CITY
DEPARTMENTS. DEBT SERVICE FUNDS
ARE MANAGED TO PAY DEBT.
CAPITAL SERVICE FUNDS ARE
RESTRICTED FOR USE AS CAPITAL
PROJECTS THAN SPECIAL REVENUE
FUNDS ARE THINGS FOR THERE IS A
SPECIFIC PUBLIC PURPOSE
ATTACHED TO THE REVENUE SOURCE
SO WE CREATE A FUND TO MANAGE
THEM THAT WAY AND IN THE
GENERAL FUND SO THERE ARE A FEW
DIFFERENT FUNDS IN THE GENERAL
FUND CATEGORY AND I WILL TALK
ABOUT THAT. IF THERE ARE NO
QUESTIONS I WILL MOVE TO THE
FINAL SLIDE OF OUR ACCOUNTING
CLASS HERE. THIS IS AGAIN THE
TOTAL CITY ALL CITY REVENUES,
SO IT IS REFORMATTING THE
ACCOUNT LEVEL VIEW THAT WE SAW
EARLIER INTO THE FUND LEVEL OF
YOU AND YOU CAN SEE THE TYPES
OF FUNDS THAT WE HAVE, AND HOW
MUCH OF EACH DIFFERENT CATEGORY
WE HAVE IN THE CITY BUDGET .
THE LARGEST CATEGORY IS THE
ENTERPRISE FUND, SO OUR
UTILITIES ARE MUCH OF THE
BUDGET, SO A BIG CHUNK OF THE
BUDGET IS FOR UTILITIES AND
VERY RESTRICTED. FUNDS ARE
CLASSIFIED AS A GENERAL FUND
BUT THIS IS WHAT I SAID THERE
ARE A FEW GENERAL FUNDS. THAT
INCLUDES THE GENERAL FUND,
JUDGMENT AND CLAIMS FUND,
OFFICES STANDARDS FUND, AND
THEN SPECIAL REVENUE FUNDS ARE
ABOUT 27% OF THE BUDGET AND
THIS INCLUDES ALL THE LEVY
FUNDS, SO THE SEATTLE LEVY, LOW
INCOME HOUSING FUND , PRESCHOOL
PROMISE FUND AND FINALLY SOME
EXCISE TAX FINES, FEES, AND
FRANCHISE-SUPPORTED FUNDS SO
THESE ARE SOME SUPPORTED FUNDS
LIKE THE JUMPSTART FUND AND
ARTS AND CULTURES FUND AND A
FEW OTHERS AS LISTED HERE SO
THIS SHOWS KIND OF FROM ALL THE
DIFFERENT ACCOUNTS WE RECEIVED,
THIS IS HOW WE MANAGE THEM IN
BROAD FUNDS AND WITHIN EACH ONE
OF THESE CATEGORIES THERE ARE
SPECIFICALLY NAMED FUND THIS --
FUNDS INCLUDED IN THEM. IN
FACT, WE HAVE PROVIDED AS AN
APPENDIX AT THE END OF THIS
PRESENTATION SOMETHING THAT
GIVES YOU A LOOK AT EACH
DEPARTMENT AND WHAT THEIR
REVENUES ARE IN TERMS OF THIS
FUND STRUCTURE AS A REFERENCE.
>> HOW MUCH IS IN THE OLS FUND?
I'M ON PAGE 134 OF THE BUDGET
BINDER, AND THERE IS 6.6 BUT I
DON'T KNOW IF THAT IS
REFERRING TO THAT AS AN
APPROPRIATION.
>> THAT SOUNDS ABOUT RIGHT, AND
CURRENTLY THE OLS FUND, HOW
THAT WORKS IN GENERAL, LIKE
THERE IS A TRANSFER FROM THE
GENERAL FUND TO THE OLS FUND TO
SUPPORT THAT ACTIVITY SO IT
REALLY IS PRIMARILY GENERAL
FUND-FUNDED BUT I WOULD HAVE TO
DOUBLE CHECK WITH MY
COLLEAGUES, BUT THERE ARE SOME
PROVISIONS RELATED TO THE OLS
FUND ABOUT HOW CERTAIN BUSINESS
ACTIVITIES SHOULD BE SUPPORTING
THE ACTIVITY OF THE OFFICE OF
LABOR STANDARDS.
>> THE REVENUE WAS $7.8 MILLION
OR SO IN THE 7.8 -- 2024
ADOPTED BUDGET AND THE WAY IT
IS WRITTEN THOSE FUNDS ARE
TRANSFERRED AS A PIECE FROM THE
LARGER B AND O TAX SO IT IS
WRITTEN IS BASICALLY GENERAL
FUND REVENUE THAT COMES IN THAT
IS THEN TRANSFERRED TO THE OLS
FUNDS TO SUPPORT OLS OPERATIONS
AND I THINK IT IS INTENDED TO
EARMARK A SLICE OF THE B AND O
TAX FOR THE OLS BUT IT IS
REALLY JUST A TRANSFER FROM
GENERAL FUND TO THE OLS FUND
AND THAT IS LIKELY WHY CITYWIDE
ACCOUNTING CLASSIFIES IT AS A
GENERAL FUND.
>> THANK YOU. SO IT IS NOT THE
PROCEEDS FROM SETTLEMENTS?
>> THERE IS SOME SMALL PIECE OF
THAT, BUT THE BULK OF IT WILL
BE THE B AND O TAX TRANSFER.
>> FINANCIAL ANALYSIS IN REAL
TIME. COUNCIL MEMBER MOORE.
>> THANK YOU. I HAVE A QUICK
QUESTION ABOUT THE ENTERPRISE
FUNDS AND WHY SDCI IS AN
ENTERPRISE FUND.
>> THE BULK OF SDCI IS BUDGET
AND THE REVENUES THAT SUPPORT
THEIR WORK OUR PERMIT
FEE-CREATED .
>> IS THAT OVERALL THE PERMIT
FEES GOES INTO THE ENTERPRISE
FUND?
>> YES.
>> YES, SO IT IS IN GENERAL
LIKE THE DEPARTMENTS THAT ARE
SORT OF SELF-CONTAINED LIKE THE
PERMIT CHARGES THE SDC I
RAISES, THEY CREATE AN
ENTERPRISE FUND TO
SELF-CONTAINED NOT. I THINK
ANOTHER EXAMPLE IS THE LAKE
I.T. FUND.
>> THAT'S AN INTERNAL SERVICE
FUND, SO TOM WILL HAVE OTHER
EXAMPLES.
>> GREAT EXAMPLES OF ENTERPRISE
FUNDS ARE AGAIN, THE LIGHT
FUND, WHICH IS ELECTRIC UTILITY
MONEY, AND THE WATER FUND,
WHICH IS FUNDING WATER UTILITY
AND SPU, SO IT IS THE SAME
CONCEPT. WE OPERATE LIKE A
BUSINESS WHERE IT IS COST
RECOVERY TO DO THE REGULATION
OF THE LOCAL LAND-USE AND THE
PERMIT IS PROVIDED COVERING THE
COST TO DO THAT REGULATION AND
NOTHING MORE. OTHERWISE AGAIN
IT IS A TAX, SO THESE
ENTERPRISE FUNDS ARE ACCOUNTED
TO CREATE THE RELATIONSHIP THAT
IT IS ESSENTIALLY RUN LIKE A
BUSINESS TO NOT GENERATE A
PROFIT BUT JUST TO DO COST
RECOVERY INDICATED BY THE LEVEL
OF REGULATION WE HAVE IN OUR
LOCAL CODES.
>> SO, THE PERMIT FEES THAT ARE
CHARGED ARE JUST FOR COST
RECOVERY OF PROCESSING THE
PERMIT?
>> YES, THE COST OF REGULATION,
YES.
>> OKAY, THANK YOU.
>> I'M GOING TO TAG ONTO
COUNCIL MEMBER MOORE BECAUSE
THIS IS GOING TO COME UP LATER
WHEN WE ARE LOOKING AT THE
PERMIT AUDIT AND WHEN WE WERE
DOING THIS WORK A NUMBER OF
YEARS AGO WE IDENTIFIED THAT
SEATTLE FIRE DEPARTMENT DOES
NOT HAVE ACCESS TO THE PERMIT
ENTERPRISE FUNDS SO THE PERMIT
REVIEWER IN THE FIRE MARSHAL'S
OFFICE HAS MULTIPLE DUTIES
WHERE THEY WERE RESPONDING TO
THE FIRE IN ROOSEVELT JUST THE
OTHER DAY BUT THEN THEY ALSO
HAVE TO ATTEND TO PERMIT REVIEW
AND CERTIFICATE OF OCCUPANCY
INSPECTION SO I KNOW WE HAVE
BEEN TRYING TO ALLOW THE FIRE
DEPARTMENT ACCESS TO THE
ENTERPRISE FUND SO WE CAN
PERMIT MORE RAPIDLY . IT'S NOT
THE FAULT OF THE FIRE
DEPARTMENT BUT IT IS A
STRUCTURAL ISSUE WE'VE
IDENTIFIED.
>> THANK YOU FOR THAT. YOU KIND
OF ANSWERED IT, BUT OLS HAS A
SIMILAR FUNCTION BUT THERE IS A
TWO-STEP PROCESS WHERE SDCI IS
ENTERPRISE BUT THEY ALSO HAVE
AN OVERSIGHT RULE AND IT'S
INTERESTING THAT YOU HAVE TWO
APPROACHES THAT SIMILARLY SEEM
TO BE SOME OVERLAP AND I WAS
CURIOUS OF THE TWO APPROACHES.
AND YOU KIND OF ANSWERED IT
AFTER I PUT MY HAND UP, BUT IF
YOU COULD JUST STEP BACK
THROUGH THAT REALLY QUICK I
WOULD APPRECIATE IT.
>> THANK YOU FOR THE QUESTION.
I BELIEVE IT IS A CONCEPT OF
POLICY, A MATTER OF WHETHER OR
NOT WE ARE DOING FULL COST
RECOVERY OR NOT SO AT THIS
POINT, OLS IS NOT SET UP WITH A
FEE BASIS WHERE WE CHARGE THE
FULL COST OF RECOVERY. THERE
ARE SETTLEMENTS THAT MAY BE
CHARGED, BUT THAT IS NOT THE
SAME THING AS SAYING WE ARE
GOING TO ASSESS A FEE ACROSS
ALL OF THE CITY BUSINESSES FOR
THE COST OF OLS BECAUSE AGAIN,
THAT'S A POLICY DECISION
WHEREAS WITH SDCI THE POLICY
DECISION HAS BEEN MADE WITH
THESE BUILDING PERMIT FEES THAT
WE ARE GOING TO DO FULL COST
RECOVERY IN ORDER TO FUND THE
REGULATORY OPERATION SO RIGHT
NOW, OLS IS ESSENTIALLY FUNDED
WITH A LARGE GENERAL FUND
TRANSFER , BUT PERHAPS
DIFFERENT DECISIONS COULD BE
MADE ABOUT THAT STRUCTURE. I
DON'T KNOW WHAT THOSE WOULD BE
BUT THAT IS THE REASON WHY IT
IS TREATED DIFFERENTLY IN THE
GENERAL LEDGER FUND STRUCTURE.
>> AND, I WILL JUST NOTE THAT
CODE ENFORCEMENT ACTIVITIES ARE
DIFFERENT THAN PERMIT
ACTIVITIES SO IN THE SDCI
EXAMPLE, THE BULK OF THEIR
BUDGET IS RELATED TO THEIR
PERMIT FEES AND REVENUES IN
PAIN FOR THE COST OF ISSUING
AND REVIEWING PERMIT AND DOING
INSPECTIONS, PAYING FOR
BUILDING NEXT -- INSPECTORS AND
THAT SORT OF THING BUT THE CODE
ENFORCEMENT ARM OF SDCI IS
PRIMARILY FUNDED, THE TREE
PENALTY FUND FOR EXAMPLE, THAT
IS A GENERAL FUND REVENUE AND I
BELIEVE PART OF THE GOAL OF
CREATING AN ACCOUNTING SYSTEM
SO WE COULD TRACK THAT IS JUST
TO GET A SENSE OF OUR OUR
PENALTIES COVERING THE COST OF
ENFORCING SOME OF THOSE
ACTIVITIES AND UNDERSTANDING
WHERE THOSE DOLLARS ARE GOING.
THAT IS ONE PIECE OF
INFORMATION YOU CAN PULL FROM
HAVING BETTER ACCOUNTING FOR
THOSE REVENUES BUT IN GENERAL
LIKE WE ARE NOT CHARGING , IF
YOU ARE GETTING A PERMIT TO
BUILD SOMETHING ON YOUR
PROPERTY, THOSE FEES ARE NOT
COVERING THE COST OF ENFORCING
FUTURE COMPLAINTS AGAINST YOU
IF YOU DID SOMETHING WEIRD WITH
THAT PROPERTY.
>> I WILL TAG ONTO THAT TO ADD
MORE CONTEXT, THE DESIRE WAS
REALLY THAT THE PENALTIES FROM
ILLEGALLY CUTTING TREES WOULD
BE USED TO PLANT MORE TREES AND
TAGGING ON TO COUNCIL MEMBER
KETTLE, WHEN ALL THIS WAS SET
UP THERE WAS BEFORE MY TIME BUT
AS I READ THIS POLICY IT IS SET
UP SO THAT ANY SETTLEMENTS OLS
GETS ARE RESTRICTED IN HOW MUCH
THEY RECEIVE AND THEY ARE
FUNDED BY B AND O TAX SO IT'S A
CONSISTENT WAY OF FUNDING IT SO
THAT OLS IS NOT INCENTIVIZED TO
GO AFTER SETTLEMENTS TO FUND
THEIR OWN PROGRAM.
>> THAT IS EXACTLY WHAT I WAS
THINKING, WE WANT TO MAKE SURE
WE ARE NOT JUST APPLYING THE
LAW IN ORDER TO GENERATE MORE
RESOURCES, SO YOU SAID THAT THE
SETTLEMENTS, THERE IS A
RESTRICTION ON HOW MUCH OLS CAN
GET FROM SETTLEMENTS, IS THAT
WHAT YOU'RE SAYING?
>> MAYBE WE CAN DIG INTO THIS
DEEPER AFTER THE COMMITTEE BUT
THAT IS JUST FROM MY
RECOLLECTION SITTING HERE WITH
NO RESEARCH BEFORE ME.
>> YES, I THINK WE HAVE OTHER
FOLKS ON CENTRAL STAFF WERE
BETTER EQUIPPED TO ANSWER THAT
IN MORE DETAIL BUT IN GENERAL
WHEN YOU SEE SETTLEMENTS
ANNOUNCED FROM THE OFFICE OF
LABOR STANDARDS THAT THE BULK
OF THAT MONEY IS GOING TO
REMEDY THE IMPACT TO WORKERS OR
THE BUSINESS OR THAT SORT OF
THING VERSUS PAYING THE CITY
FOR THE COST, SO IT IS NOT COST
RECOVERY AND FOR SOME OF THE
REASONS YOU SUGGESTED, COUNCIL
PRESIDENT NELSON, THAT IT COULD
BE PERCEIVED AS ENFORCEMENT TO
GENERATE MONEY VERSUS THE GOAL
OF HAVING OUR EMPLOYEES AND
BUSINESSES WORKING IN LINE WITH
LOCAL AND STATE LAW.
>> NO FURTHER QUESTIONS ON THIS
LINE? BACK TO YOU, TOM.
>> THE INTENT OF THIS GRAPH IS
TO DEMONSTRATE HOW THE
CATEGORIES OF REVENUES ALIGN
WITH THE RESTRICTED AND
UNRESTRICTED FUNDS, SORT OF
VERY HIGH LEVEL , THE BARS ON
THE LEFT ARE THE GENERAL FUNDS
IN THE SPECIAL REVENUE FUNDS
AND AS YOU CAN SEE, THE LARGEST
CATEGORIES ON EACH OF THESE ARE
THE ORANGE CATEGORY, WHICH IS
TAXES AND THEN THE INTERNAL
SERVICE FUNDS, SO FAS AND I.T.
AND THE ENTERPRISE FUNDS, CITY
LIGHT, SPU, SDCI, ALMOST ALL OF
THEIR REVENUE IS FROM CHARGES
FOR GOODS AND SERVICES, SO IT
IS KIND OF A HINT WHEN YOU ARE
DEALING WITH A FUND THAT
RECEIVES A LOT OF CHARGE
REVENUE IT IS LIKELY
RESTRICTED. WHEN YOU'RE
DEALING WITH ENTERPRISE FUND OR
INTERNAL SERVICE FUND THOSE
REVENUES ARE RESTRICTED AND SO
THAT KIND OF EXPLAINS WHY EVEN
THOUGH THERE IS A $7.8 BILLION
BUDGET, THERE IS NOT THIS
CONCEPT OF FUNGIBILITY WHERE
THE DOLLARS -- MOST OF THE
DOLLARS HAVE A PRESCRIBED
PURPOSE AND THEY HAVE TO
OPERATE WITHIN THEIR LINE OF
RESTRICTION. WE CAN'T, FOR
EXAMPLE, JUST USE MONIES FROM
THE UTILITIES TO HELP SOLVE THE
GENERAL FUND DEFICIT. WE ARE
GOING TO FOCUS NOW ON THE
PLACES WHERE THERE ARE SOME
ALTERNATIVES, AND THIS IS
WITHIN THE AREAS OF THE GENERAL
FUNDS AND SPECIAL REVENUE
FUNDS. AS I MENTIONED EARLIER,
WE TALKED ABOUT THE GENERAL
FUND SO THERE IS THE MAIN
GENERAL FUND, BUT THERE ARE
ALSO THESE OTHER FUNDS
CONSIDERED GENERAL FUNDS. THE
JUDGMENT AND CLAIMS FUND, THE
SUGAR SWEETENED BEVERAGE TAX
FUND AND THE OLS FUNDER ALL
GENERAL FUNDS SO THEY ARE
VIEWED AS UNRESTRICTED IN THAT
WAY . THOUGH THERE ARE
RESTRICTIONS THAT APPLY, THE
SWEETENED BEVERAGE FUND HAS A
RESTRICTION APPLIED BY THE
SEATTLE MUNICIPAL CODE TO BE
USED FOR FOOD ACCESS AND YOUTH
DEVELOPMENT IN THE JUDGMENT AND
CLAIM FUND IS UNRESTRICTED. IT
RECEIVES TRANSFERS FROM THE
MAIN GENERAL FUND. IT RECEIVES
CLAIMS SETTLEMENT REVENUE , BUT
THOSE MONIES ARE USE TO PAY
CLAIMS, SO IF WE USE THOSE
REVENUES FOR SOME OTHER PURPOSE
WE WOULD STILL HAVE TO PAY
CLAIMS FROM THE CLAIMS FUND SO
THAT KIND OF RESTRICTION MAKES
SENSE IN THE TECHNICAL AND
PRACTICAL WAY.
>> COUNCILMEMBER RIVERA.
>> DOES THE JUDGMENT AND CLAIMS
FUND TO COVER OUR JUDGMENT AND
CLAIMS? ON THE JUDGMENT AND
CLAIMS FUND, DOES IT USUALLY
COVER THE CITY'S JUDGMENT? IS
IT USUALLY ENOUGH TO COVER
JUDGMENTS AND CLAIMS OR DO WE
WIND UP HAVING TO SUPPLEMENT?
>> YOU KNOW, IN GENERAL, THE
LEVEL AT WHICH THE JUDGMENT AND
CLAIMS FUND IS FUNDED
YEAR-TO-YEAR IS FUNDED BY OUR
ACTUAL REAL -- ACTUARIAL
INFORMATION. IN RECENT YEARS WE
HAVE SEEN AN INCREASE IN
JUDGMENT AND CLAIMS COST
LARGELY STEMMING FROM SOME OF
THE ACTIONS IN 2020 AND WE ARE
CONTINUING TO SEE SOME OF THAT
PLAY OUT TODAY SO OVER THE LAST
SEVERAL YEARS, COUNSEL HAS BEEN
ASKED TO INCREASE
APPROPRIATIONS TO THE JUDGMENT
AND CLAIMS FUND IN THE MIDYEAR
AND YEAR-END SUPPLEMENTAL
BUDGETS. THE BUDGET OFFICE, THE
CITY ATTORNEY'S OFFICE AND
RISK MANAGEMENT AND THE FINANCE
DEPARTMENT ARE WORKING HARD TO
TRY TO RIGHT SIZE THAT AND IT
IS STILL TO BE DETERMINED IF
THOSE INCREASES OVER THE LAST
SEVERAL YEARS ARE THE NEW
NORMAL , OR REALLY ARE AN
ANOMALY, SO WE CONTINUE TO
MONITOR AND TRACK THAT AND
THERE IS SOME NO ONGOING
REQUIRED REPORTING IN ADVANCE
OF MID-YEAR BUDGET DISCUSSIONS
FROM THE CITY ATTORNEY'S
OFFICE AND RISK MANAGEMENT
ABOUT HOW WE ARE TRACKING THEM
AND IF THEY ARE ANTICIPATING
THAT ADDITIONAL RESOURCES WILL
BE NEEDED.
>> COUNCIL MEMBER MOORE.
>> THANK YOU. HAS THERE EVER
BEEN ANY DISCUSSION ABOUT FOR
EXAMPLE, SPD, WHEN WE PAY OUT A
LARGE JUDGMENT, TAKING THAT OUT
OF THEIR BUDGET , DIFFERENT
DEPARTMENT BUDGETS?
>> YES. WE HAVE HAD THOSE
CONVERSATIONS AND IT IS A
LITTLE -- IT VARIES, HOW THIS
IS TREATED, BUT IN GENERAL,
COMING OUT OF THEIR BUDGET IS
JUST -- WE HAVE TO INCREASE
THEIR BUDGET THEN TRANSFER IT
TO THE JUDGMENT AND CLAIMS FUND
BUT IT DOES REFLECT LIKE , IT
IS NOT -- I THINK ONE WAY YOU
COULD DO THAT IS THEY COULD
TAKE A CUT, LIKE THEY WOULD
HAVE TO CUT OTHER THINGS IN
ORDER TO JUST TAKE IT OUT OF
THEIR BUDGET . IN GENERAL IF
THERE IS A PATTERN, LIKE FOR A
COUPLE OF YEARS, THE DEPARTMENT
HAS HIGHER THAN PROJECTED
JUDGMENT AND CLAIMS PAYOUTS,
LIKE STEMMING FROM ACTIONS THAT
THAT DEPARTMENT IS RESPONSIBLE
FOR, YOU WILL SEE IN THEIR
BUDGET, THEIR INTERNAL SERVICE
COST INCREASE AND THERE ARE
SOME EXAMPLES OF THAT IN THE
BUDGET REVIEW DOCUMENT LIKE FOR
EXAMPLE, THE MAYOR'S OFFICE
BUDGET BETWEEN 2019 AND 20 24
LOOKS LIKE IT IS GROWN
SIGNIFICANTLY AND SOME OF THAT
IS DUE TO JUDGMENT AND CLAIMS
THAT WERE TIED TO THAT
DEPARTMENT, SO THERE 2024
BUDGET WAS INCREASED TO REFLECT
HOW THEY HAVE HAD HIGHER
JUDGMENT AND CLAIMS COSTS, THEN
THERE BUDGET PAYS THE JUDGMENT
AND CLAIMS FUND SO THAT IS A
LONG WAY OF SAYING YOU CAN, AND
THAT IS HOW IT WORKS, BUT THE
PRACTICE HAS BEEN TO INCREASE
THAT DEPARTMENT'S BUDGET SO
THEY CAN PAY A LARGER SHARE
INTO THE JUDGMENT AND CLAIMS
FUND VERSUS MAKING THEM MAKE
DIFFERENT DECISIONS TO REDUCE
SPENDING ELSEWHERE TO PAY FOR
THEIR JUDGMENT AND CLAIMS,
WHICH COULD BE TRICKY DEPENDING
ON WHEN A JUDGMENT FALLS.
>> THAT IS A POLICY CHOICE,
RIGHT? AND AWAY TO ALSO
INCENTIVIZE PEOPLE TO BE MORE
MINDFUL AND CAREFUL RATHER THAN
NOW, THE CITY WILL PAY FOR OUR
NEGLIGENCE.
>> SURE. IT IS A POLICY CHOICE,
YES.
>> THANK YOU.
>> THANK YOU, COUNCIL MEMBER
MOORE AND JUST CLARIFYING, WHEN
YOU ARE TALKING ABOUT THE
MAYOR'S BUDGET YOU ARE NOT
REFERRING TO MAYOR HARRELL.
>> I WAS NOT. THANK YOU. IT
REFERS TO THE DEPARTMENT AND IT
WAS ACTUALLY TO POINT OUT THAT
IT LOOKS LARGER AND IT WAS NOT
ACTIONS OF THIS MAYOR AND IT
WAS NOT REALLY ILLUSTRATING THE
ACTUAL COST OF RUNNING THE
MAYOR'S OFFICE YEAR TO YEAR.
IT IS LIKE IF IN ONE YEAR THEY
HAD THE BIGGER PAYOUT FROM
PREVIOUS MAYOR ACTIONS BUT THAT
IS CORRECT. THANK YOU FOR THAT
CLARIFICATION.
>> COUNCIL PRESIDENT.
>> SO, WE ALSO NEED TO BE
MINDFUL THAT WE HAVE ALSO BEEN
RESPONSIBLE FOR CLAIMS IN
EITHER POLICY OR ACTIONS OR
WHATEVER.
>> YES, I ONLY USE THE MAYOR'S
OFFICE EXAMPLE BECAUSE I KNOW
IN THE BUDGET REVIEW DOCUMENT
WE HIGHLIGHT THAT IT IS ONE OF
THE ANOMALIES THAT
MISREPRESENTS THE GROWTH IN
THEIR BUDGET. IT WAS NOT MEANT
TO SUGGEST THAT THE MAYOR IS
CAUSING --
>> I'M GOING TO KEEP US
MOVING. HERE WE GO.
>> SO DRILLING DOWN WE CAN TALK
ABOUT SPECIAL REVENU,
SO THE HEALTHCARE FUND , WHICH
IS FOR EMPLOYEE AND EMPLOYER
CONTRIBUTIONS TO OUR
SELF-INSURED HEALTHCARE
PROGRAM. INDUSTRIAL INSURANCE,
WORKERS COMP ARE SPECIAL
REVENUE FUNDS MANAGED FOR THAT
PURPOSE THAN FUNDS WAS -- WITH
SIGNIFICANT FEE SUPPORT. SOME
OF THE LARGER ONES ARE THE
TRANSPORTATION FUND AND THE
PARKS AND RECREATION FUND AND
LEVY FUNDS, SO ALL THE LEVY
FUNDS ARE ALSO SPECIAL REVENUE
FUNDS MANAGED FOR THAT PURPOSE
THEN I WOULD JUST SAY THAT
WITHIN THAT REALM , A
GENERAL-PURPOSE LIFT IS
ALLOWABLE, SO JUST KIND OF A
GENERAL EXPENSE LEVY, IF YOU
WILL. SO JUST ADDING THAT IN
THERE, BUT AS YOU ARE GOING
THROUGH THE PROCESS WITH THE
TRANSPORTATION LEVY, THESE ALL
HAVE A PRESCRIBED RATE IN
PROCUREMENT STRUCTURE IS
DETERMINED BY VOTE . THIS NEXT
SLIDE GETS TO THE PLACE I
BELIEVE WHERE WE HAVE MORE
OPTION ANALOGY -- OPTIONS IN
THE TERM THAT YOU'VE PROBABLY
HEARD BY NOW'S GENERAL FUND
ADJACENT. THESE ARE THE HEAVY
HITTER SPECIAL REVENUE FUNDS
FOR THERE ARE LOCAL
RESTRICTIONS THAT ARE APPLIED,
THE LARGEST OF WHICH CURRENTLY
IS THE JUMPSTART PAYROLL
EXPENSE TAX FUND. WE COVERED
THAT AT THE LAST SELECT BUDGET
COMMITTEE MEETING WITH THE
PRESENTATION KIND OF DEFINING
AND DEMONSTRATING HOW THOSE
RESTRICTIONS ARE LAID OUT IN
THE BUDGET AND THE ARTS AND
CULTURE FUND SO THAT HIS
ADMISSIONS TAX, A TAX PROVIDED
FOR BY THE STATE BUT IT IS
UNRESTRICTED AND HOW WE USE IT.
WE APPLY LOCAL RESTRICTIONS OF
HOW TO USE IT. THE SHORT-TERM
RENTAL TAX FUND COMES WITH
HIGHER-LEVEL STATE RESTRICTIONS
APPLIED. WE ACTUALLY TAKE THAT
A STEP FURTHER AND APPLY
ADDITIONAL LOCAL RESTRICTIONS
THOUGH A DIFFERENT CHOICE COULD
BE MADE AND THEN SOME OF THE
SMALLER ONES ARE THE FRANCHISE
FEE FUND, THESE FROM OUR CABLE
FRANCHISE USED FOR PURPOSES
SUCH AS THE SEATTLE CHANNEL
WHICH IS ALLOWING PEOPLE TO
WATCH US TODAY IN THE SCHOOL
TRAFFIC PEDESTRIAN SAFETY FUND
IS A PENALTY ON THE FINDINGS,
SO IT'S NOT RESTRICTED BUT WE
APPLY RESTRICTIONS LOCALLY
ABOUT HOW WE WANT TO USE THOSE
MONIES AND THEN THE NEXT SLIDE
YOU CAN SEE THE MAGNITUDE OF
EACH OF THESE, SO $325 MILLION
IS THE ADOPTED BUDGET AS WE
KNOW IT, THE REVENUE FORECAST
FOR THE JUMPSTART FUND HAS
GOTTEN HIGHER. SWEET AND
BEVERAGE TAX FUND TO 23 1/2 AND
SHORT-TERM RENTAL TAX, 23.9 SO
DIFFERENT DECISIONS COULD BE
MADE ABOUT THOSE RESTRICTIONS
SINCE THEY ARE APPLIED LOCALLY.
HOWEVER, ALL OF THESE FUNDS ARE
BUDGETED FOR USES UNDER THE
CURRENT RESTRICTIONS IN THE
BUDGET SO DIFFERENT DECISIONS
COULD BE MADE WITH TRADE-OFFS.
THIS IS JUST A WAY OF SHOWING
THAT YOU COULD EXPAND WITH THE
DECISION FRONTIER FOR MAKING
DECISIONS IN THE BUDGET BY
LUMPING ONE OR MORE OF THESE
RESTRICTED CATEGORIES INTO THE
GENERAL FUND DISCUSSION .
HOWEVER, THERE OF COURSE ARE
TRADE-OFFS BECAUSE PRIOR USES
WOULD PERHAPS NOT BE FULFILLED
IF A DIFFERENT DECISION IS
MADE. IT IS JUST A MATTER OF
EXPANDING OPTIONS. SO WE COULD,
THAN THAT, I THINK, TAKES US TO
KEY TAKEAWAYS, WHICH IS THAT
THERE ARE STATE AND EXTERNAL
RESTRICTIONS APPLIED OF HOW WE
CAN COLLECT REVENUES AND HOW WE
CAN USE THEM . AS WE HAVE SEEN,
MOST OF THE BUDGET IS
RESTRICTED IN SOME WAY. WE
MANAGE THOSE RESTRICTIONS WITH
A FINANCIAL STRUCTURE THAT USES
FUNDS AND ACCOUNTS TO KIND OF
DEFINE THE PARAMETERS OF HOW
THOSE RESTRICTIONS ARE APPLIED
IN A BUDGET. TAX REVENUES IN
GENERAL ARE THE LEAST
RESTRICTED SOURCE BUT THERE ARE
RESTRICTIONS APPLIED IN SOME
CASES . THE SELF-IMPOSED
RESTRICTIONS, THOSE ONES WHERE
A LOCAL ORDINANCES CONTROLLING
THE USE OF THE PLACES WERE
DIFFERENT DECISIONS CAN BE MADE
AND THOSE ARE PREVALENT IN THE
SPECIAL REVENUE FUNDS , AND
THEN IF IT IS POSSIBLE TO
REMOVE OR MODIFY MANY OF THOSE
RESTRICTIONS WITH AN ORDINANCE
CHANGE . THAT IS ONE OF THOSE
THINGS THAT MAY COME IN THE
MAYOR'S BUDGET PROPOSAL WITH
THE DECISION TO ALTER THE
PARAMETERS THAT RESTRICT ONE OR
MORE OF THESE CATEGORIES WE
HAVE TALKED ABOUT.
>> IF IT IS AN ORDINANCE CHANGE
, THEN COUNSEL WOULD HAVE TO
ADOPT THAT ORDINANCE?
>> THAT IS CORRECT. WE GET THE
LARGER BUDGET ORDINANCE BUT
THERE ARE THESE OTHER
RECONCILING BILLS THAT ARE PART
OF THE MAYOR'S LARGER BUDGET
PROPOSAL, AND IN THAT CASE, IF
THERE WAS A DECISION ABOUT ONE
OF THESE RESTRICTED SOURCES,
THERE WOULD BE AN ORDINANCE AS
PART OF THAT BUDGET SUBMISSION
THAT WOULD MAKE THAT CHANGE SO
IT IS KIND OF IN A WAY, IT IS
BAKED INTO THE PROPOSAL AND IT
IS COUNSELS OPTION AS TO HOW TO
ENGAGE WITH THAT, WHETHER TO
ACCEPT OR MAKE DIFFERENT
DECISIONS.
>> I KNOW I'VE SAID THIS
BEFORE, WHETHER IT IS IN THIS
ROOM ARE PRIVATELY IN YOUR
OFFICES BUT THAT IS ONE OF THE
CHALLENGES YOU WILL HAVE IN
RECEIVING A BALANCED BUDGET
THAT DOESN'T HAVE TO BE BASED
ON CURRENT LAW. IT COULD BE
BASED ON ASSUMPTIONS ABOUT
CHANGES TO LAW, SO WITH THE
MAYOR'S PROPOSAL IS BALANCED,
ASSUMING THAT THE COUNCIL WILL
AGREE TO CHANGING POLICIES ON
USE OF CERTAIN FUNDS, YOU HAVE
AUTHORITY TO REJECT THAT
PROPOSAL OR MODIFY IT, BUT YOU
ALSO HAVE TO UNRAVEL THE
PROPOSED WAYS THE MAYOR HAD
USED THOSE FUNDS IN THE BUDGET,
SO IT IS JUST PART OF THE FUND
THAT WE DO EACH FALL IN THE
BUDGET PROCESS.
>> THANK YOU FOR THAT
ADDITIONAL CONTEXT AND I WILL
PASS IT TO COUNCIL PRESIDENT
AND A SECOND TO SAY THAT A
PREVIEW FOR OUR BUDGET SECTION
THIS FALL IS THERE ARE MANY
DIFFERENT BILLS THAT MAKE UP
THE BUDGET, AND SO WHEN WE VOTE
ON THE DAY OF VOTING IN THE
BUDGET, WE HAVE A SPECIAL
MEETING SIMPLY BECAUSE IT TAKES
HALF AN HOUR TO AN HOUR JUST TO
VOTE ON ALL OF THE DIFFERENT
BILLS.
>> DO WE STILL HAVE A
TRANSPORTATION NETWORK COMPANY
FUND? IS THAT A RESTRICTED
FUND?
>> WE DO NOT HAVE A FUND. IT IS
SIMILAR TO THE TREE ORDINANCE,
IT IS A REVENUE ACCOUNT IN THE
GENERAL FUND THAT IS MANAGED IN
A SPECIFIC WAY, SO IT HAS
RESTRICTIONS, BUT IT IS WITHIN
THIS LARGER, UNRESTRICTED POOL.
>> THANKS.
>> I'M NOT SEEING ANY OTHER
QUESTIONS. COUNCILMEMBER
RIVERA.
>> THANK YOU, CHAIR. ON SOME OF
THESE RESTRICTED FUNDS,
DEPARTMENTS HAVE UNDER SPEND
EVERY YEAR . THEY CAN GO BACK
TO GENERAL FUND IF IT IS FOR
INSTANCE, TRANSPORTATION LEVY,
WHERE DO THE FUNDS GO? DO THEY
GET CARRYFORWARD? I MEAN, THERE
IS CARRYFORWARD AUTHORITY IF
THEY ACTUALLY NEEDED FOR THAT
PURPOSE. SOMETIMES THEY DON'T.
DEPARTMENTS WIND UP DECIDING TO
REPURPOSE IT FOR SOMETHING
ELSE. WE DON'T ALWAYS KNOW
THAT AT THIS LEVEL, BUT IF IT
IS A LEVY, AND LET'S SAY THERE
IS UNDER SPEND. THERE IS NO
NEED FOR IT, HOW DOES THAT GET
CAPTURED? MOVING FORWARD, SINCE
IT IS RESTRICTED.
>> THANK YOU FOR THAT QUESTION.
IN THAT CASE, WHEN IT IS NOT AN
APPROPRIATION THAT THEY WANT TO
CARRY FORWARD, LET'S SAY JUST
MONEY THAT THEY DON'T NEED, IT
REVERTS TO THE BALANCE, SO IT
GOES INTO THE BALANCE OF THE
FUND THAT IS AVAILABLE TO BE
USED IN ANY WAY IN LINE WITH
THE RESTRICTIONS FOR THAT FUND,
SO IT GOES TO THE CASH BALANCE
THAN IS AVAILABLE FOR
RE-APPROPRIATION.
>> BUT THERE ARE DIFFERENT WAYS
LIKE CAPITAL APPROPRIATIONS
AUTOMATICALLY CARRYFORWARD FROM
YEAR TO YEAR. OPERATING
APPROPRIATIONS DO NOT BUT IF
THEY ARE ENCUMBERED, THERE IS
AN EXERCISE THE CITY BUDGET
GOES THROUGH WITH ALL
DEPARTMENTS AFTER THE YEAR IS
CLOSING SO THERE ARE A COUPLE
OF WAYS FUNDS COULD BE CARRIED
FORWARD. ONE IS YES, THEY LAPSE
TO THAT FUND BALANCE SO IF YOU
DIDN'T SPEND THE GENERAL FUND
IT COULD GO TO THE FUND BALANCE
AND COUNSEL COULD MAKE
DECISIONS ABOUT APPROPRIATING
THOSE FOR OTHER USES. THE FIRST
TIME YOU'RE TYPICALLY ASKED TO
MAKE THOSE DECISIONS IS THROUGH
THE ANNUAL CARRYFORWARD
ORDINANCES AND THAT REFLECTS
AREAS OF UNDER SPEND THAT WOULD
OTHERWISE LAPSE THAT THE
DEPARTMENT HAS REQUESTED THAT
THEY CARRY THOSE FORWARD AND
USUALLY, IF THE SYSTEM IS
WORKING RIGHT, IT IS TO CARRY
THEM FORWARD FOR THE SAME
PURPOSE THEY WERE ORIGINALLY
PROPOSED IN THE PREVIOUS
YEAR'S BUDGET. THE BUDGET
OFFICE , YOU KNOW, THE
EXECUTIVE FIRST MAKES DECISIONS
ABOUT WHICH OF THOSE REQUESTS
THEY'RE GOING TO ACCOMMODATE
AND THEN AS YOU ALL JUST WALKED
THROUGH IN THE LAST FEW WEEKS
YOU ALL DELIBERATE AND DECIDE
WHETHER OR NOT YOU AGREE WITH
THOSE CARRYFORWARD REQUESTS AND
IF YOU HAD REJECTED ANY OF
THOSE, FOR EXAMPLE, IT WOULD
HAVE LAPSED TO WHICHEVER FUND
AND STARTED FROM AND FUTURE
DECISIONS COULD BE USED ABOUT
ALLOCATING THOSE FUNDS
CONSISTENT WITH WHICHEVER
RESTRICTIONS APPLY.
>> THAT IS A REALLY GOOD
QUESTION BECAUSE THERE ARE A
NUMBER OF DEPARTMENTS ROUTINELY
FUNDED AT A HIGHER LEVEL THAN
WE KNOW THEY CAN SPEND IN A
GIVEN YEAR AND THAT IS FOR THE
USE OF A PROVISO IS REALLY
USEFUL BECAUSE IF WE KNOW,
ESPECIALLY WITHIN A BUDGET LINE
ITEM, THAT WE HAVE FUNDED WHAT
WE BELIEVE THEY CAN SPEND ,
PUTTING A PROVISO ALLOWS THEM
TO KEEP THAT MONEY IN THEIR
BUDGET AND ALLOWS US TO SAY YOU
CAN'T JUST USE IT FOR
ANYTHING.
>> BUT LIKE WE HAVE SEEN IN THE
LAST COUPLE OF WEEKS, A PROVISO
DOESN'T -- DEPARTMENTS, WHEN
THE MANY LAPSES THEY CAN ALWAYS
ASK FOR CARRYFORWARD AUTHORITY
IN THE FOLLOWING YEAR WHETHER
OR NOT THE MONEY IS PROVISO.
>> THAT'S RIGHT AND IN THE
ANNUAL BUDGET PROCESS, BECAUSE
WE DO LOOK AT THE YEAR-END
SUPPLEMENTAL BUDGET AT THAT
TIME AND YOU KNOW, WE ARE
TRYING TO LIKE THE BUDGET
OFFICE AND CENTRAL STAFF WILL
BE LOOKING AT LIKE IS THERE ANY
UNDER SPEND PROJECTED AND COULD
COUNSEL MAKE DECISIONS NOW
ABOUT HOW TO USE THOSE FUNDS
NEXT YEAR, SO FOR EXAMPLE, IF
WE KNEW A SIGNIFICANT CHUNK OF
THE DEPARTMENTS BUDGET WAS
LIKELY TO NOT GET SPENT IN THIS
YEAR, YOU CAN DECIDE IN ADVANCE
OF THE ANNUAL CARRYFORWARD BILL
TO AMEND THIS YEAR'S BUDGET TO
ADD IN AN AUTOMATIC
CARRYFORWARD OR CUT IT FROM
THIS YEAR'S BUDGET AND ADD IT
BACK TO NEXT YEAR, SO THERE IS
A NUMBER OF TOOLS AVAILABLE AND
AS WE GET CLOSER TO THE END OF
THE YEAR, WE HAD BETTER
UNDERSTAND WHAT THE SPEND RATE
MIGHT BE SO SOMETIMES CAN MAKE
EARLIER DECISIONS.
>> WONDERFUL. I THINK THOSE ARE
ALL OF THE QUESTIONS ON THIS
PRESENTATION, NOTING WE TOOK A
LITTLE BIT LONGER ON THAT
PRESENTATION, I THINK IT WAS
WELL WORTH IT. WE HAVE TWO
ADDITIONAL PRESENTATIONS.
CLERK, PLEASE READ THE NEXT
INTO THE RECORD.
>> AGENDA ITEM TWO, REVEREND
ESTABLISHES -- STABILIZATION
WORK BRIEFING .
>> THIS WAS PUT TOGETHER WITH
THE PREVIOUS FINANCE CHAIR TO
LOOK AT OTHER OPTIONS FOR
REVENUE STABILIZATION WITHIN
THIS PROJECTED REVENUE GAP. I
WILL SAY THAT BECAUSE WE HAD
MEMBERS OF THE PUBLIC ENGAGED
IN THIS ACTIVITY, THEY WERE NOT
NECESSARILY ABLE TO RECEIVE THE
ADVICE OF OUR LAW DEPARTMENT,
WHICH WHEN WE WERE TALKING
ABOUT THE UNIFORMITY CLAUSE
PREVIOUSLY, HAS GREAT IMPACT
AND SO FOR INSTANCE, THERE WERE
IDEAS THAT I WANTED TO PUT
FORWARD EARLY IN MY TENURE HERE
THAT I TRIED. I WAS TOLD THEY
WERE NOT POSSIBLE , THEN THEY
SHOWED UP ON THIS LIST SO I
THOUGHT WE HAD NEW ADVICE. IN
FACT, WE DID NOT BUT WITH THAT,
I WILL TURN IT OVER TO YOU,
DEPUTY DIRECTOR, AND TOM, TO
WALK US THROUGH WHAT HAPPENED
OVER THE LAST FEW YEARS.
>> THANK YOU. I'M GOING TO
PROVIDE A HIGH LEVEL OVERVIEW
BUT I'M HAPPY TO TALK WITH YOU
ALL OFF-LINE, AND THE REPORT IS
AVAILABLE , AS WELL. WHERE DID
THIS ALL COME FROM, THIS REBEL
-- REVENUE STABILIZATION
WORKGROUP? IN THE FALL OF 2021
AS THE PREVIOUS COUNSEL WAS
CONTEMPLATING THE BUDGET FOR
2022, IT WAS KNOWN CENTRAL
STAFF WAS DOING THEIR REGULAR
ROUNDS OF DEMONSTRATING HOW
SUSTAINABLE OR NOT THE PROPOSED
OR FINAL BUDGET WOULD BE, AND
SO THERE WAS ACKNOWLEDGMENT
THAT THERE WERE A NUMBER OF
ONGOING EXPENDITURES WHERE WE
DID NOT HAVE AN ONGOING WAY TO
PAY FOR THEM IN FUTURE YEARS SO
THAT COUNSEL'S DECISION AT
THAT POINT WAS TO COMMIT TO
CONSIDERING NEW REVENUE OPTIONS
TO CONTINUE SOME OF THE
EXPENDITURES AND ADDRESS THE
REVENUE SITUATION TO PROVIDE
ONGOING SUPPORT FOR SOME OF OUR
BASE GENERAL FUND SERVICES, SO
THEY ADOPTED A STATEMENT OF
LEGISLATIVE INTENT, WHICH IS
ESSENTIALLY A TOOL THAT COUNSEL
USES TO PROVIDE POLICY GUIDANCE
, LEGISLATIVE INTENT, ASK FOR
CERTAIN WORKER SUPPORT FROM THE
EXECUTIVE AND IN THIS CASE,
COUNSEL'S COMMITMENT TO
WORKING WITH THE MAYOR TO
REVIEW SEATTLE'S TAX STRUCTURE
AND IDENTIFY WAYS TO MAKE IT
MORE EQUITABLE AND TO RAISE NEW
PROGRESSIVE REVENUES. INVENTED
-- EMBEDDED IN THAT STATEMENT
OF INTENT, OR WHAT WE USUALLY
REFER TO AS AN SLI, IS A
COMMITMENT TO A WORKGROUP THAT
INCLUDED A VARIETY OF PEOPLE
FROM THE BUSINESS COMMUNITY.
BEFORE I WALK THROUGH THAT
PROCESS I WILL NOTE THAT I AM
GENERALLY HIGHLIGHTING THE
INFORMATION THAT CAME OUT OF
THAT WORKGROUP'S FINAL REPORT.
THIS WAS NOT A CENTRAL STAFF
WORK PRODUCT AND IF THIS
COUNSEL DECIDED TO PURSUE ANY
OF THOSE IDEAS WE WOULD PROVIDE
ADDITIONAL ANALYSIS ON THAT, SO
THE WORK GROUP WAS CONVENED IN
THE FALL OF 2022, AND MET NINE
TIMES BETWEEN OCTOBER OF 22 IN
AUGUST OF 23 . AFTER INITIAL
DISCUSSIONS THAT PROVIDED
BACKGROUND AND CONTEXT FOR THAT
WORKGROUP, SOME OF WHICH IS
SIMILAR TO SOME OF THE
BACKGROUND AND CONTEXT WE HAVE
DONE ABOUT HOW WE GOT HERE IN
TERMS OF THE GENERAL FUND
DEFICIT THAT LED TO DISCUSSIONS
ABOUT POTENTIAL REVENUE IDEAS
AND IT IS IMPORTANT TO NOTE
THAT THESE WERE DISCUSSIONS.
THIS WAS A GROUP OF PEOPLE THAT
DID NOT NECESSARILY ALL BELIEVE
THAT A REVENUE SOLUTION WAS, OR
THAT NEW REVENUE WAS A SOLUTION
AND SOME FELT STRONGLY THAT NEW
REVENUE IS CRITICAL AND SO WHAT
CAME OUT OF THAT WORK GROUP WAS
REVIEWING A LIST OF 63
POTENTIAL REVENUE IDEAS AND
THEY NARROWED THAT DOWN TO A
LIST OF NINE OPTIONS, BUT I
WANT TO BE CLEAR, THESE WERE
NOT RECOMMENDATIONS. THESE WERE
-- OF THAT LIST, THESE WERE THE
NINE THAT THIS GROUP, IF THE
CITY IS GOING TO CONSIDER NEW
RESIN -- REVENUE THESE SHOULD
BE CONSIDERED FURTHER BUT IT
WAS NOT A YES, THE SCREWBALL
AGREES THAT WE SHOULD IMPOSE,
THAT THE CITY SHOULD ADOPT
THESE NINE TAXES OR NOT. IT
INCLUDED 13 MEMBERS AND
CO-CHAIRS, AND THE LIST OF NINE
HERE ARE THE ONES THEY ASKED
>> THANK YOU ABOUT THE POINT
REGARDING THAT THERE WAS NO
CONSENSUS COMING OUT OF THIS
AND AS MENTIONED YESTERDAY,
FROM A GOOD GOVERNANCE
PERSPECTIVE, WAS THERE A
COMPANION EXPENSES
STABILIZATION WORKGROUP EFFORT
ALSO INITIATED?
>> THERE WAS NOT.
>> OKAY. AND COUNCIL MEMBER
KETTLE, THAT THE DOLLAR FOR THE
GOOD GOVERNANCE JAR. IT'S JUST
A GENERAL GOOD GOVERNANCE POINT
OF VIEW. WE SHOULD BE LOOKING
AT DISPENSES AS MUCH AS WE LOOK
AT REVENUE AND THE FACT THAT
THERE WAS NOT A COMPANION GROUP
POINTS TO A CERTAIN LACK OF
GOOD GOVERNANCE IN MY VIEW.
>> MR. CHAIR, IF I MAY, POINT
OF PERSONAL PRIVILEGE ACTUALLY,
I DO APPRECIATE GOOD
GOVERNANCE. THANK YOU.
>> THANK YOU. WE ARE GOING TO
SOLVE THIS BUDGET BY THE END OF
THIS MEETING. DEPUTY DIRECTOR.
>> OKAY, SO MOVING ON, THAT
REPORT IDENTIFYING THOSE NINE
OPTIONS WAS RELEASED IN AUGUST
OF 23. WE DID A BRIEFING THAT
WAS SIMILAR TO THIS, BUT MAYBE
A LITTLE MORE DETAILED ON
AUGUST 10th OF LAST YEAR. AT
THAT MEETING, WE NOTED THAT
CENTRAL STAFF HAD IDENTIFIED OF
THOSE NINE LISTS, THERE WERE A
FEW THAT WERE MOSTLY FROM A
PRACTICAL ADMINISTRATIVE
STANDPOINT WERE LIKELY THE BEST
POSITION TO BE CONSIDERED ON A
SHORTER TIME FRAME, AND TO
JUMPSTART TAX, MODIFYING THE
JUMPSTART TAX IN THE CITY LEVEL
CAPITAL GAINS TAX AND THE HIGH
CEO PAY RATIO TAX MIGHT BE THE
OTHER OPTION THAT WOULD BE MOST
READY TO PURSUE IN THAT TIME,
FORM THEIR -- THE FORMER
FINANCE CHAIR SUGGESTED WE
PREPARE OPTIONS FOR THOSE THREE
REVENUE IDEAS FOR CONSIDERATION
AND DISCUSSION DURING THAT
FALLS BUDGET PROCESS AND SO
FOLLOWING THOSE DISCUSSIONS --
>> BEFORE WE MOVE IN ON THEIR I
WAS JUST GOING TO STATE THAT
SINCE THIS REPORT WAS RECEIVED
OR DELIVERED , THAT THE COUNCIL
DID CHANGE THE JUMPSTART
PAYROLL EXPENSE TAX. I THINK
YOU ARE JUST GETTING THERE.
HOWEVER, THAT WAS SEPARATED
FROM THE PROPOSAL. THIS WAS A
SEPARATE COUNCILMEMBER BRINGING
FORWARD HIS OWN SET OF THREE
PROPOSALS.
>> YES, AND WE HAD DONE SOME
INITIAL WORK TO LOOK INTO
OPTIONS AND OUR WORK, IF YOU
ASK US, IS AVAILABLE TO ALL. WE
SERVE ALL NINE EQUALLY SO IF
YOU ASK US WE WILL PROVIDE THE
SAME INFORMATION. IN THE END,
THE COUNCIL DID NOT CHOOSE TO
MODIFY THE JUMPSTART TAX IN THE
FALL AS A GENERAL REVENUE
PROGRESSIVE REVENUE SOLUTION TO
ADDRESS THE GENERAL FUND GAP,
BUT THERE WAS A DECISION TO
INCREASE THE JUMPSTART TAX
PAYROLL EXPENSE TAX RATES TO
GENERATE $20 MILLION, BUT IT
WAS DESIGNATED FOR A SPECIFIC
PURPOSE WHICH WAS INVESTMENT
AND STUDENT MENTAL HEALTH
SERVICES, AND SO THAT MONEY WAS
ADDED TO THE DEPARTMENT OF
EDUCATION EARLY LEARNING THIS
BUDGET. BEFORE THEY CAN FULLY
IMPLEMENT THAT SPENDING, THERE
DOES NEED TO BE SOME
LEGISLATIVE ACTION IN ORDER TO
FULLY ALLOW THAT BECAUSE
CURRENTLY JUMPSTART FUND
POLICIES DO NOT INCLUDE A
CATEGORY FOR STUDENT MENTAL
HEALTH INVESTMENTS.
>> THANK YOU. IT WAS MY
UNDERSTANDING THAT WE AS THE
CITY OR EVEN COUNSEL DID NOT
CONSULT THE SCHOOL DISTRICT
BEFORE THIS VOTE, AND IT IS MY
UNDERSTANDING THAT WE DID NOT
DO OUTREACH BEFORE TAKING THESE
VOTES LAST YEAR.
>> I CAN'T SPEAK TO ANY WORK
THAT THE SPONSOR'S OFFICE MAY
OR MAY NOT HAVE DONE WITH THE
SCHOOL DISTRICT. I KNOW THERE
WERE CONVERSATIONS BETWEEN
CENTRAL STAFF AND THE
DEPARTMENT BUT I AM NOT AWARE
OF CONVERSATIONS DIRECTLY WITH
HOW THIS WOULD BE IMPLEMENTED.
>> COUNCIL MEMBER RIVERA.
>> TO THAT POINT, I'M NOT SURE
I AM AWARE OF ANY CONVERSATIONS
BETWEEN THE DEPARTMENT AND THE
CITY IN GENERAL WITH PUBLIC
HEALTH REGARDING THIS
PARTICULAR INVESTMENT.
>> YES. WE ALL WANT MORE MENTAL
HEALTH COUNSELORS AND SCHOOLS.
THAT IS NOT -- I HAVEN'T FOUND
SOMEBODY WHO DISAGREES WITH
THAT POINT OF VIEW, BUT THE
CONSULTATION WITH ANOTHER
GOVERNMENTAL ENTITY TO
UNDERSTAND IF THEY CAN SPEND
THE MONEY WE RAISED OR NOT AND
IF THERE IS OUR CAPACITY TO
SPEND THOSE DOLLARS IN THE WAY
WE ARE TALKING ABOUT.
>> THANK YOU. IT IS NOT A LINE
OF BUSINESS THAT THE DEPARTMENT
HAS FORMALLY ENGAGED IN. IT IS
A NEWER LINE OF BUSINESS .
PRIOR TO THESE DOLLARS, THE
COUNCIL HAD GIVEN THE
DEPARTMENT $4.5 MILLION ALSO
FOR MENTAL HEALTH. WE DON'T
KNOW HOW THAT MONEY HAS BEEN
IMPLEMENTED. I'M TRYING TO
WORK WITH THE DEPARTMENT TO
DETERMINE, HAVE NO IDEA HOW THE
MONEY WAS IMPLEMENTED, HOW WELL
IT IS WORKING. AGAIN, IT IS A
NEW LINE OF BUSINESS. THERE ARE
NO MENTAL HEALTH EXPERTS OF THE
DEPARTMENT OR THE CITY. THERE
IS PUBLIC HEALTH BUT I'M NOT
SURE HOW IMPORTANT PUBLIC
HEALTH WAS TO THAT SO
DEFINITELY A LOT OF QUESTIONS
HERE.
>> SO, DO WE HAVE $10 MILLION
SITTING IN SOME ACCOUNT THAT IS
UNALLOCATED BECAUSE IT WAS
DESIGNED TO GENERATE $20
MILLION A YEAR PRESUMABLY
HALFWAY THROUGH THE YEAR THERE
WOULD BE ABOUT $10 MILLION
SITTING AROUND?
>> I CAN'T TELL YOU ON WHAT
THE COLLECTION RATE IS BECAUSE
THE PAYROLL TAX IS DONE. THERE
ARE QUARTERLY ESTIMATES THAT
THE END OF THE YEAR BUT I WILL
SAY THE DEPARTMENT OF EDUCATION
AND EARLY LEARNING HOUSE $20
MILLION OF APPROPRIATION
AUTHORITY TO BE USED FOR THIS
PURPOSE BUT THEY CANNOT
ACTUALLY EXECUTE THAT SPENDING
UNTIL AND UNLESS YOU MODIFY THE
POLICIES IN SOME WAY AND THAT
COULD BE DONE THROUGH A
LEGISLATIVE ACTION TO FORMALLY
AMEND THE POLICIES OR IF THERE
IS A WAY TO DO THAT VIA PROVISO
IN A SUPPLEMENTAL BUDGET IF THE
COUNCIL DESIRED AND THAT COULD
BE DONE FOR THE FULL 20 MILLION
OR A PORTION THEREOF AND THEN I
WILL JUST SAY QUICKLY ON THE
USE OF THE FUNDS , THAT THE $20
MILLION I THINK, I'M GETTING
SOME REAL-TIME INFORMATION FROM
MY COLLEAGUE, HAD IMPLEMENTED
SOME REAL-TIME PROJECTS AND
FIVE SCHOOL SO I BELIEVE THE
$20 MILLION MAY HAVE BEEN
INFORMED BY SOME OF THOSE COSTS
AND IF WE HAVE ANY ADDITIONAL
DETAILS WE WILL FOLLOW UP WITH
YOU ONLINE.
>> THANK YOU.
>> ON THIS ONE, I HAVE TALKED
TO THE DEPARTMENT AND THEY
DON'T YET HAVE A PLAN FOR
THESE FUNDS, SO WE WILL BE
WORKING WITH THE DEPARTMENT AND
THAT IS SOMETHING AS WE COME
FORWARD , THE COMMITTEE A CHAIR
WE WILL BE GETTING MORE
INFORMATION.
>> YES AND I WAS NOT MEANING TO
CONTRADICT. THAT WAS WHAT
INFORMED THE 20 MILLION AMOUNT,
THEY HAVE NO -- THEY DO NOT YET
HAVE A PLAN TO ACTUALLY
IMPLEMENT IS A DIFFERENT
CURRENT ISSUE BUT THEY MAY HAVE
BEEN WHAT INFORMED THE PROPOSAL
IN SOME WAY.
>> COUNCIL MEMBER KETTLE.
>> THANK YOU. FOR THE RECORD I
DEFINITELY SUPPORT MENTAL
HEALTH SERVICES IN OUR SCHOOL
BUT IT IS INTERESTING THAT
SCHOOL EDUCATION, PUBLIC
EDUCATION IS A STATE FUNCTION.
MENTAL HEALTH IS A STATE
FUNCTION OF THIS SHOULD HAVE
BEEN PRECEDED BY YEARS OF
ENGAGEMENT. I HAVE ALREADY
SPOKEN TO OIR. THEY SHOULD BE
AT THE TOP OF THE LIST FOR THE
STATE TO DO ITS DUTY AND WE
SHOULD NOT BE LETTING HIM OFF
THE HOOK SO WE SHOULD BE
DEFINITELY PUSHING THIS IN
TERMS OF OUR ADVOCACY WITH THE
STATE BECAUSE FOR ONE THING, I
THINK IT SETS A BAD PRECEDENT .
THESE ARE THE ISSUES WE SEE IN
PUBLIC SAFETY ALL THE TIME,
PUBLIC HEALTH, ANOTHER FUNCTION
THAT HAS A STATE AND COUNTY
PIECE TO IT. WE HAVE TO BE
DOING OUR DUE DILIGENCE AS PART
OF GOOD GOVERNANCE EFFORTS AND
THIS IS A FRUSTRATION BECAUSE
AGAIN, IT IS SHOWING UP NOW IN
TERMS OF THE BUDGET PROCESS TO
BRING IT TO THIS COMMUNITY AND
IT IS UNFORTUNATE THAT THE CART
BEFORE THE HORSE IS PROBABLY
THE BEST WAY TO SAY IT AND
DEFINITELY SUPPORT MENTAL
HEALTH SPENDING IN OUR SCHOOLS
BUT WE DEFINITELY SHOULD BE
FROM A BUDGET PERSPECTIVE,
CLAMORING WITH THE STATE TO
FULFILL ITS DUTIES.
>> CANNOT AGREE MORE. WE ALL
WANT OUR STUDENTS TO HAVE THE
BEST RESOURCES POSSIBLE IN
EDUCATION, MENTAL HEALTH, AND
IT IS A STATE DUTY.
>> YES, ABSOLUTELY. I COULD NOT
AGREE MORE. WE CARE ABOUT
MENTAL HEALTH FOR USE IN
GENERAL ACROSS THE CITY. AND SO
I UNDERSTAND WHERE THIS IS
COMING FROM, BUT TO COUNCIL
MEMBER KETTLE'S POINT, WE NEED
TO MAKE SURE WE ARE HOLDING THE
STATE ACCOUNTABLE FOR WHAT
THEIR RESPONSIBILITY IS, AND
ALSO BEING CAREFUL TO ENGAGE --
THIS IS A SERIOUS TOPIC AND IT
REQUIRES EXPERTISE , AND IF WE
DON'T HAVE THOSE EXPERTISE, I
WORRY ABOUT HOW THIS WILL BE
IMPLEMENTED, SO JUST THAT IS
ALSO OF CONCERN TO ME.
>> WELL SAID. ANY OTHER
QUESTIONS ON THIS PORTION? I
THINK THERE WERE TWO OTHER
IDEAS COMING OUT OF THIS WORK
GROUP THE DEPUTY DIRECTOR HAS
TO PRESENT TO US.
>> ANOTHER OPTION THAT WAS
LOOKED INTO AND DEVELOPED WAS A
CITY LEVEL CAPITAL GAINS TAX.
THERE WAS A COUNCIL BILL
INTRODUCED TO PROPOSED LOCAL
CAPITAL GAINS USING THE SAME
STRUCTURE AND REFERENCED THE
STATE CAPITAL GAINS TAX BUT IT
WOULD BE A 2% LOCAL RIGHT ON
GAINS FROM THE SALE OF
NONEXEMPT CAPITAL ASSETS. AT
THAT TIME, WE DID WORK WITH THE
INDEPENDENT OFFICE OF ECONOMIC
AND REVENUE FORECAST TO
ESTIMATE WHAT THAT COULD
GENERATE. I WILL JUST NOTE, IT
WAS ABOUT $19 MILLION PER 1%,
SO THE 2% WOULD ACTUALLY
GENERATE -- WAS ESTIMATED TO
GENERATE 38 MILLION. AT THAT
TIME, BUT THE FORCE -- FORECAST
OFFICE AND CENTRAL STAFF
HIGHLIGHTED AN UNUSUAL DEGREE
OF VOLATILITY IN THESE
ESTIMATES AND WE'VE SEEN THAT
COME THROUGH IN RECENT STATE
COLLECTIONS. THIS YEAR'S
COLLECTIONS VERSUS LAST YEAR'S
HAVE FLUCTUATED SIGNIFICANTLY
AND SO IT IS JUST A REVENUE
THAT IS AVAILABLE TO THE CITY
TO COLLECT, BUT WE WOULD ADVISE
SOME CAUTION IN FULLY
ALLOCATING THOSE USES FOR
ONGOING EXPENSES YEAR-OVER-YEAR
BECAUSE THEY WILL FLUCTUATE.
IT'S A GOOD USE FOR ONE-TIME
EXPENDITURES OR SOME BASE
AMOUNT AS ONGOING AND ANYTHING
ABOVE THAT TO BE AVAILABLE FOR
ONE TIME SPENDING SHOULD THE
CITY WISH TO -- SHOULD THIS
COUNSEL WISH TO PURSUE IT. IT
WAS NOT ACTED ON DURING LAST
YEAR'S BUDGET, BUT WAS
DISCUSSED.
>> COUNCIL MEMBER MOORE
>> I WANT TO NOTE THAT
CONTINUES TO BE A SIMILAR
ARGUMENT FOR THE PAYROLL
EXPENSE TAX, THAT IT IS A
VOLATILE TAX YET WE HAVE
IMPLEMENTED IT AND IT HAS BEEN
MILDLY SUCCESSFUL SO JUST WANT
TO MAKE THAT POINT FOR THE
RECORD.
>> YES AND I GUESS IT IS GOOD
TO HAVE SOME YEARS OF
OBSERVATION OF HOW A TAX
PERFORMS BEFORE FULLY
PROGRAMMING ALL OF THE
PROJECTED REVENUES BECAUSE AS I
SHOWED IN THE LAST PRESENTATION
FROM THE TIME OF BUDGET
ADOPTION TO THE TIME OF FACTUAL
COLLECTION HAS VARIED WILDLY
FROM THE PAYROLL EXPENSE TAX. I
WILL ALSO NOTE THERE IS A VALID
INITIATIVE AT THE STATE LEVEL
TO REPEAL THE STATE CAPITAL
GAINS TAX THAT WE DON'T THINK
WOULD PREEMPT THE CITY FROM
MOVING FORWARD BUT IF THAT
HAPPENED, WE WOULD NEED TO DO
MORE WORK TO UNDERSTAND AND
RECONCILE LIKE THERE WOULD NEED
TO BE CHANGES TO THIS BILL IF
THAT REPEAL WAS SUCCESSFUL, SO
MORE WORK WOULD BE NEEDED BASED
ON THE OUTCOME OF THAT
STATEWIDE VOTE.
>> CORRECT ME IF I AM WRONG BUT
I THINK THAT ALSO INCLUDES
REMOVING THE LOCAL
JURISDICTIONS ABILITY TO IMPOSE
SUCH TAX.
>> WE WOULD NEED TO CONFIRM
THAT.
>> I LOOKED AT THAT YESTERDAY
AND IT SEEMS LIKE IT IS JUST A
CLEAN REPEAL OF THE ESTATE TAX
WITHOUT A LOCAL IMPLICATION.
PERHAPS YOU ARE THINKING OF --
THERE WAS A LOCAL INCOME TAX
PREEMPTION THAT WAS ADOPTED BY
THE LEGISLATURE AND THAT DOES
SAY NO INCOME TAX FOR THE STATE
AND LOCAL GOVERNMENTS.
>> AND THEN FINALLY, THERE WAS
A HIGH CEO PAYROLL RATIO TAX
CONSIDERED WHICH IS ESSENTIALLY
LOOKING COMPANIES FOR THE
HIGHEST-PAID EMPLOYEE, CEO OR
UPPER TIERS OF THE CORPORATE
MANAGEMENT, IF THEIR PAY IS
SIGNIFICANTLY GREATER, LIKE 100
TIMES GREATER THAN THE AVERAGE
WORKER, THERE WOULD BE AN
ADDITIONAL TAX APPLIED.
PORTLAND AND SAN FRANCISCO ARE
TWO EXAMPLES WITH THIS TYPE OF
TAX IN PLACE. WE DID SOME WORK
TO LOOK AT THAT AND IDENTIFIED
A POTENTIAL PATH THAT WOULD BE
A JUMPSTART ON PAYROLL EXPENSE
TAX AND LIKELY DOING SOMETHING
THAT WOULD BE MORE SIMILAR TO
SAN FRANCISCO'S MODEL THAT
GENERATES ADDITIONAL REVENUE
AND MAY REQUIRE SOME CHANGES TO
STATE LAW BUT MORE WORK WOULD
NEED TO BE DONE. WHAT WE FOUND
ON THE INITIAL WORK FOR WAS A
SURTAX TO THE PAYROLL EXPENSE
TAX WOULD NOT GENERATE
SIGNIFICANT AMOUNTS OF REVENUE
SO AT THAT TIME, THE COUNCIL
DID NOT ASK US TO CONTINUE THAT
WORK IN THE MIDST OF BUDGET BUT
MORE WORK COULD BE DONE IN THIS
AREA TO DETERMINE IF THERE WAS
A VIABLE PATH, SHOULD THE
COUNCIL BE INTERESTED.
>> THANK YOU. I AM NOT SEEING
ANY QUESTIONS EVEN THOUGH THAT
IS THE NEXT SLIDE. COUNCIL
PRESIDENT.
>> THE MAYOR AND HIS STATE OF
THE CITY, DID SAY THAT HE WAS
NOT CONSIDERING ADDITIONAL
REVENUE SOURCES FOR THIS BUDGET
SEASON, SO HAS THAT CHANGED, OR
ARE WE NOW OR ARE YOU ARE WHY
ARE WE TALKING ABOUT THESE
EXTRA SOURCES?
>> GOOD QUESTION. WE ARE GOING
THROUGH A DEEP EXAMINATION AND
REVIEW OF OUR BUDGETING PROCESS
IS AND WHAT IS HAPPENED OVER
THE LAST FIVE AND 10 YEARS, SO
THIS INFORMATION IS FOR ALL
COUNCILMEMBERS TO MAKE SURE WE
ARE ON THE SAME PAGE ABOUT WHAT
HAS OCCURRED OVER THE PAST
YEARS LEADING US TO THIS
FALL'S BUDGET PRACTICE. I
KNOW, AS NINE SEPARATELY
ELECTED OFFICIALS, WE ALL HAVE
THE PREROGATIVE TO MAKE
DIFFERENT DECISIONS BASED UPON
OUR OWN ABILITIES AND
DISCRETION AND THE MAYOR ALSO
SEPARATELY ELECTED, A 10th
PERSON IN THIS MIX, WE ALL HAVE
THE PREROGATIVE TO MAKE A LOT
OF CHOICES AT OUR DISCRETION.
>> THANK YOU, AND THE EXCESS
PAYROLL CEO, WHATEVER THAT IS,
ALSO THE SOURCE OF REVENUE FOR
A BALLOT INITIATIVE THAT IS
LIVE RIGHT NOW, SO DOES THAT
MATTER?
>> THAT IS ADDING AN INCREMENT
ON THE EXISTING EXPENSE TAX. I
WOULD HAVE TO REVIEW THAT MORE
CAREFULLY, BUT IT WOULD BE
ANOTHER ADJUSTMENT TO THE
PAYROLL, ESSENTIALLY TO THE
PAYROLL EXPENSE TAX, SORT OF
HOW IT IS APPLIED, AND WHO IS
LIABLE, SO IN THE SIMPLEST
FORM, IF YOU THINK OF REET ONE
AND TWO, REET IS THE FIRST
QUARTER PERCENT FROM REAL
ESTATE TRANSACTIONS AND CAN
ONLY BE USED FOR CERTAIN THINGS
AND THEN REET TWO ADDS ANOTHER
QUARTER INCREMENT ON TOP OF
THAT. THE PROPOSAL FOR THE
INITIATIVE, I BELIEVE, IS SORT
OF ADDING ANOTHER RATE
INCREMENT AND ADDING SOME NEW
CATEGORIES SO THE TAX WOULD
APPLY TO SOME ADDITIONAL
BUSINESS AS COMPARED TO THE
EXISTING PAYROLL EXPENSE TAX.
>> GOT IT. WELL, IF YOU DON'T
MIND PIGGYBACKING ON WHAT
COUNCIL MEMBER KETTLE WAS
SAYING, WAS THERE A REPORT ON
EXPENSES? I HAVE SAID THAT IT
IS IMPORTANT THAT WE FOCUS ON
OUR EXPENSES AS WELL AS
CONTINUALLY LOOKING FOR NEW
SOURCES OF REVENUE BECAUSE THIS
REVENUE STABILIZATION WORK
GROUP, THAT WAS PASSED BY
COUNSEL THE FIRST YEAR OF THE
JUMPSTART, AND SO CHECKS HAD
NOT EVEN STARTED ROLLING IN
FROM BUSINESSES TO PAY FOR
THEIR PORTION OF THE JUMPSTART
TAX WHEN COUNCIL DECIDED WE
NEED A NEW TEXAN SO THAT
TENDENCY HAS PLAYED A ROLE IN
GETTING US INTO THIS OPERATING
DEFICIT RIGHT NOW SO I JUST
WANTED TO NOTE THAT WE HAVE TO
ALSO LOOK AT BOTH SIDES OF THE
LEDGER.
>> COUNCIL PRESIDENT, I JUST
WANT TO CLARIFY. DID YOU SAY
THE JUMPSTART HAS CONTRIBUTED
TO THE OPERATING EXPENSE?
>> NO. IT IS A KIND OF
THINKING, WHICH IS THAT INSTEAD
OF LOOKING AT OUR EXPENSES,
LOOKING AT ANOTHER SOURCE OF
REVENUE.
>> THANK YOU. COUNCIL MEMBER
MORALES.
>> THANK YOU. I APPRECIATE THIS
CONVERSATION AND TO THE COUNCIL
PRESIDENT'S POINT, I WONDER IF
YOU COULD TALK A LITTLE BIT
ABOUT -- THIS IS WHAT WE DO IN
THE BUDGET PROCESS, GO THROUGH
DEPARTMENT BY DEPARTMENT, AT
LEAST THE BIGGER ONES, TO SEE
WHERE SPENDING IS HAPPENING,
AND SO I GUESS I AM CURIOUS IF
YOU ANTICIPATE HAVING THAT
CONVERSATION, GIVING YOUR
REQUEST TO EACH OF US TO DO A
DEEP DIVE INTO OUR OWN
DEPARTMENTS THAT WE OVERSEE, IF
YOU ANTICIPATE HAVING A PREVIEW
BEFORE BUDGET STARTS OF WHERE
EACH OF US THINKS OUR SPENDING
NEEDS TO BE REDUCED IN OUR OWN
DEPARTMENT.
>> I AM CONTINUING TO MEET WITH
EVERY COUNCILMEMBER ABOUT ALL
OF THE OPTIONS ON THE TABLE,
WHICH IS, ARE YOU FINDING
PLACES YOU WANT TO CUT WITHIN
YOUR DEPARTMENTS? ARE YOU
LOOKING AT NEW REVENUE? WHAT IS
THE COUNCIL'S APPETITE FOR
MOVING FORWARD IN THIS IS
ACTUALLY A GREAT SEGUE INTO THE
LAST ITEM ON OUR AGENDA TODAY.
>> AGENDA ITEM THREE, SUMMARY
OF 2024 BUDGET REVIEW FOR
BRIEFING AND DISCUSSION.
>> AND SO, COUNCIL MEMBER
MORALES, THIS NEXT PRESENTATION
, WHICH IS REVIEWING THIS
SEGMENT OF THE SELECT BUDGET
SERIES BETWEEN NOW AND AUGUST,
THE REQUEST IS TO DO A DEEP
DIVE INTO OUR DEPARTMENTS AND
CONTINUE MEETING. I DON'T
THINK WE ARE GOING TO ELECT TO
USE THE JULY 12 TIME THAT WE
HAVE HELP FOR THIS COMMITTEE,
BUT I WILL CONFER WITH THE VICE
CHAIR AFTER THE MEETING, SO
THIS PRESENTATION WE ARE ABOUT
TO GO THROUGH IS SUMMARIZING
THE WORK OVER THE LAST SEVERAL
MEETINGS. WE WILL BE WORKING
INTERNALLY OVER THE NEXT FEW
MONTHS AND CONTINUE TO ADVOCATE
AND WORK WITH THE MAYOR'S
OFFICE. COUNCIL MEMBER SAKA.
>> THANK YOU. JUST TO CLOSE OUT
THE CONVERSATION ON THE REVENUE
STABILIZATION WORK GROUP, FROM
MY PERSPECTIVE, THIS IS A GREAT
AGENDA ITEM. I LEARNED A LOT
MORE ABOUT THE HISTORY,
BACKGROUND INFORMATION OF THAT
IMPORTANT WORKGROUP AND I
DON'T ENVY THE JOB OF MY
PREDECESSORS ON THE COUNCIL AT
THE TIME IN CREATING IT, BUT IT
IS AN ABSOLUTE VALID POLICY
DECISION TO CREATE THAT, AND
YOU KNOW, WE CAN HAVE VALID
DISAGREEMENTS ABOUT THE SCOPE
OF THAT, WHETHER OR NOT IT
SHOULD COVER THE EXPENSES, AS
WELL, RATHER THAN REVENUE, BUT
FOR ME, AND I WANT TO THANK
EVERY LAST INDIVIDUAL MEMBER
WHO SERVED FROM OUR COMMUNITY,
WHO SERVED ON A VOLUNTEER BASIS
FOR THAT, THAT KIND OF WORK IS
CRITICALLY IMPORTANT AND WE
NEED TO ENCOURAGE MORE PEOPLE
TO SERVE ON A VOLUNTEER BASIS
TO HELP ADVISE AND EMPOWER US
AS ELECTED OFFICIALS TO MAKE
THE BEST DECISIONS POSSIBLE
THAT ARE FULLY INFORMED, SO
GREAT. I AM PROUD OF THE WORK
OF EACH INDIVIDUAL TASK FORCE
MEMBER, AND I ALSO THINK THERE
WERE SOME CLEAR WARNINGS --
LEARNINGS WE ALL CAN APPRECIATE
THAT. NOTHING IS PERFECT. I'M
ALL ABOUT LEARNING AND
IMPROVING AND GETTING BETTER
EVERY TIME AND THAT JUST TOOK
PLACE IN TERMS OF SOME PARALLEL
CONVERSATIONS WE ARE TALKING
ABOUT POTENTIALLY RIGHT NOW
COLLEAGUES AS YOU KNOW,
STANDING UP ATTACKS -- A TASK
FORCE IN CREATING A SPECIFIC
PLAN TO BETTER MEET AND SERVE
THE NEEDS RATHER THAN RELYING
SOLELY ON BILLION-DOLLAR PLUS
LEVEES AND OTHER MECHANISMS AND
SO BUT WE NEED THESE AD HOC
TYPE OF VOLUNTEER POWER
COMMUNITY GROUPS AND TASK
FORCE, IF YOU WILL. ON LIKE
THAT ONE, THE CONVERSATION WE
ARE KIND OF HAVING ON THE
TRANSPORTATION FRONT IN THAT
CONTEXT , THE OUTPUT , THE
RESULTS OF THAT WORK ARE LIKELY
GOING TO SURVIVE AND PRODUCE
SOMETHING FOR MOST OF THIS
COUNCIL TO CONSIDER AS OPPOSED
TO AND POTENTIALLY TAKE ACTION
ON AS OPPOSED TO TWO THIRDS NET
NEW COMPOSITION SO GRATEFUL FOR
THE WORK BUT AS WE CONSIDER,
AND IT IS NOT JUST FOR
TRANSPORTATION. WE NEED THESE
TYPE OF EXPERT LED COALITIONS
TO HELP EMPOWER AND ADVISE US
BUT IT IS REALLY IMPORTANT TO
LINE UP ON SCOPE, WHATEVER THAT
IS, REVENUE, EXPENSES AND THAT
AND THE BUDGET CONTEXT,
WHATEVER THE SCOPE IS, REALLY
IMPORTANT TO LINE UP ON THAT,
THE ANTICIPATED AND EXPECTED
DELIVERABLES. IS IT
RECOMMENDATIONS? IS IT OPTIONS?
IS IT A PLAN? IS IT A TIMEFRAME
AND WE ALSO WANT TO MAKE SURE
IT IS WELL RESOURCED AND BACKED
BY RESOURCES TO MAKE SURE THAT
WHATEVER DELIVERABLE OR WORK
PRODUCT PRODUCED IS, TO THE
FULLEST EXTENT, IMPLEMENTABLE
IF THAT IS THE POLICY CHOICE
MADE WITH THE UNDERSTANDING
YOU'RE ALWAYS GOING TO HAVE
THE UNDERSTANDING THAT YOU HAVE
TO DO FINAL WORK TO CLOSE THE
LAST DETAILS AND THERE IS A
BALANCE BETWEEN THAT AND
VACANCY TAX. YEAH, THIS IS A
THING. IN ANY EVENT, THANK YOU
AGAIN FOR BRINGING THIS IS A
CRITICAL AGENDA ITEM FOR ALL OF
US TO LEARN ON AND AS WE
CONSIDER RELATED THINGS GOING
FORWARD, SO THANK YOU.
>> THANK YOU, COUNCIL MEMBER
SAKA. WITH 19 MINUTES LEFT IN
THIS COMMITTEE MEETING AND I
KNOW COUNCIL MEMBER MORALES
NEEDS TO BE EXCUSED IN FOUR
MINUTES, THIS IS THE NEXT
SUMMARY OF THE WORK THAT WE
HAVE DONE JUST TO PREP US
MOVING TO OUR NEXT PHASE OF
WORK IN AUGUST. I WILL TURN IT
OVER TO YOU.
>> AS I AM TEEING THAT UP I
WILL JUST OFFER FOR CONTEXT, IT
WAS NOT A LACK OF CONVERSATION
ABOUT THE EXPENDITURE SIDE OF
THE EQUATION WITH THE FORMER
COUNSEL. IT WAS AN INTENTIONAL
DECISION , CONTINUING THE WAY
THE CITY WAS SPENDING MONEY WAS
IMPORTANT AND THAT THE DECISION
FOR THE MAJORITY AT THAT TIME
WAS TO PURSUE PROGRESSIVE
REVENUE. THIS COUNCIL IS HAVING
DIFFERENT CONVERSATIONS. WE
HAVE GENERATED THE BUDGET
REVIEW DOCUMENT TO INFORM THAT
REVIEW BUT I DO THINK THAT
CONTEXT IS IMPORTANT TO HAVE ON
THE TABLE, AND THAT THE
CONVERSATIONS SHIFT OVER TIME
AS THE CONTEXT CHANGES AS THE
PLAYERS CHANGE IN ALL OF THAT.
BUT YOU KNOW, A FUTURE COUNSEL
MAY MAKE DIFFERENT DECISIONS
THAN YOU AND THAT IS PART OF
DEMOCRACY.
>> I WILL SPEND A LOT OF TIME.
YOU ALL HAVE BEEN HERE
ALONGSIDE US AS WE HAVE WALK
YOU THROUGH A NUMBER OF BUDGET
DISCUSSIONS TO REALLY PROVIDE
INFORMATION FOR YOU ALL AND THE
PUBLIC AS YOU CONTEMPLATE THE
FUTURE CITY BUDGET AND GET
READY FOR THIS FALL'S BUDGET
PROCESS, SO WE HAVE DONE SOME
CONVERSATIONS ABOUT THE
PROJECTED GENERAL FUND DEFICIT,
HOW WE GOT HERE. WE RELEASED
AND HAVE DISCUSSED THE BUDGET
REVIEW DOCUMENT. WE HAVE WALKED
THROUGH AND UPDATED THE GENERAL
FUND FINANCIAL PLAN AND-ONE
BRIEFINGS ON THE USE OF
JUMPSTART AND THEN JUST TODAY
ON REVENUE RESTRICTIONS. AND SO
I WILL JUST PULL OUT A COUPLE
OF KEY TAKEAWAYS FROM SOME OF
THOSE PRESENTATIONS BUT IT HAS
BEEN A PLEASURE TO HAVE THESE
CONVERSATIONS WITH ALL OF YOU
AND I SEE HOW IT IS INFORMING
ALL OUR CONVERSATIONS
THROUGHOUT CITY POLICY AND
THINKING ABOUT THAT BALANCE OF
PROVIDING SERVICES TO THE
COMMUNITY AND BEING GOOD
STEWARDS OF PUBLIC RESOURCES,
SO LOOK FORWARD TO FURTHER
CONVERSATION BUT FOCUSING ON
THE GENERAL FUND DEFICIT WE
HAVE WALK THROUGH A NUMBER OF
THINGS REALLY TRACING SOME OF
THE BACKGROUND AND HISTORY OVER
THE LAST MANY YEARS OF HOW THE
GENERAL FUND IS FLUCTUATED IN
PERIODS OF LOW INFLATION AND
HIGH ANNUAL REVENUE GROWTH AND
AS WE SWITCH TO ENVIRONMENTS OF
HIGH INFLATION AND LOW ANNUAL
REVENUE GROWTH AND HOW THAT HAS
CHANGED AND PUT PRESSURE ON THE
CITY'S BUDGET AND THAT WHAT WE
FOUND IN SOME OF THAT ANALYSIS
WAS THE BULK OF THE EXPENDITURE
GROWTH IS LARGELY TIED TO
BASELINE AND TECHNICAL
ADJUSTMENT, SO THE COST OF
PROVIDING GOODS AND SERVICES
HAS INCREASED OVER THE YEARS,
AND REVENUES ARE NOT KEEPING
PACE. THAT IS THE CONVERSATION
ABOUT POTENTIAL AREAS TO REDUCE
SPENDING OR INCREASE REVENUES.
WE DISCUSSED A MIX OF TOOLS
THAT YOU WILL CONTINUE TO
DISCUSS AND CONSIDER AND DECIDE
HOW YOU WOULD LIKE TO DEPLOY
THEM DURING THE BUDGET PROCESS
AFTER YOU SEE HOW THE MAYOR HAS
PROPOSED TO BALANCE. IN
MID-MAY, WE DID AN UPDATE AFTER
THE YEAR HAD CLOSED OUT IN THE
APRIL FORECAST WAS RELEASED TO
SHOW THAT PROJECTED ONGOING GAP
IN THE GENERAL FUND HAD GROWN
TO ABOUT $258 MILLION SINCE THE
24 BUDGET HAD BEEN ADOPTED AND
THAT MUCH OF WHAT WAS DRIVING
THAT WAS THE LABOR CONTRACT
COSTS THAT HAD EXCEEDED THE
ADOPTED BUDGET.
>> THANK YOU. NOTING FOR THE
RECORD, COUNCIL MEMBER MORALES
AND COUNCIL MEMBER
HOLLINGSWORTH ARE EXCUSED.
>> I KNOW YOU WILL HAVE THIS
NEXT TO YOUR BEDS AT NIGHT. WE
RELEASED THE BUDGET REVIEW
DOCUMENT WHICH IS A RIVETING
220+ PAGES OF BUDGET
INFORMATION WHERE WE PROVIDE A
SUMMARY OF CITYWIDE BUDGET
CHANGES OVER A FIVE YEAR PERIOD
THEN WALK THROUGH EACH
DEPARTMENT'S BUDGET TO PROVIDE
AGAIN THAT INFORMATION IN
ADVANCE FOR YOU ALL TO BE
THINKING ABOUT YOUR PRIORITIES
IN THE CITY BUDGET AND HOW YOU
MIGHT WANT TO ADDRESS THE
DEFICIT. AGAIN HERE WE FOUND
SIMILAR THINGS, PRIMARILY
EXPENDITURE GROWTH IS DRIVEN BY
INFLATION. THE BUDGET HAS GROWN
ABOUT 29% OVER THE FIVE-YEAR
PERIOD. THAT IS ABOUT 5.8% PER
YEAR DURING THE PERIODS WHERE
INFLATION WAS AVERAGING ABOUT
5% THEN WE IDENTIFIED WHICH
DEPARTMENTS ARE REALLY DRIVING
THAT GROWTH . WE HAVE CITYWIDE
THE ENTIRE BUDGET LEVEL
DRILLING AND ON THE JUMPSTART
FUND AND THE GENERAL FUND AND
THAT INFORMATION IS ALL
DETAILED IN OUR BUDGET REVIEW
DOCUMENTS. LAST COMMITTEE
MEETING WE ALSO DID A
WALK-THROUGH OF SOME BACKGROUND
AND INFORMATION ABOUT THE
DEVELOPMENT OF THE JUMPSTART
PERIL EXPENSE TAX, THE FUND
POLICIES AND HOW THOSE POLICIES
HAVE BEEN MODIFIED OVER THE
YEARS TO ADDRESS SOME OF THE
QUESTIONS YOU WILL CONTINUE TO
DISCUSS TODAY, AND THAT THE TAX
REVENUE HAS REALLY PERFORMED
BETTER THAN ADDITIONAL
ESTIMATES AS COUNSELOR MOORE
POINTED OUT ALREADY TODAY BUT
THAT STILL CONTINUES TO BE
FLUCTUATING BUT OVERALL IS
OUTPERFORMING INITIAL ESTIMATES
IN 2020 AND THEN, AS HAS BEEN
IN PAST YEARS, THERE ARE POLICY
OPTIONS FOR THE COUNCIL TO
CONSIDER AND WE OUTLINED A
NUMBER OF MORE DETAILED
QUESTIONS BUT REALLY THE
QUESTION FOR ALL OF YOU TO BE
THINKING ABOUT YOU SHOULD
JUMPSTART TAX REVENUES BE USED
TO HELP ADDRESS THE PROJECTED
GENERAL FUND DEFICIT AND IF
YES, HOW SO, AND THAT WILL BE
AN ONGOING CONVERSATION I
EXPECT TO SEE TAKEN UP IN
EARNEST DURING THE FALL BUDGET
PROCESS AND THEN I WON'T SPEND
MUCH TIME , OR REALLY NOT AT
ALL ON THIS ONE SINCE WE JUST
WALKED THROUGH IT BUT THE TAKE
AWAY IS MUCH OF OUR CITY
REVENUE IS RESTRICTED. HOW YOU
COLLECTED IS RESTRICTED AND HOW
YOU CAN USE IT AS RESTRICTED,
MAKING THE GENERAL FUND PROBLEM
MORE DIFFICULT BUT I THINK WITH
THESE BUDGET BRIEFINGS AND
INTERNAL DISCUSSIONS AND WORK ,
WE HAVE SET YOU ALL UP WITH
INFORMATION TO HELP MAKE THOSE
INFORMED DISCUSSIONS AND
DECISIONS THIS FALL. I WILL
JUST NOTE I INVITE YOU ALL TO
CONTINUE TO LOOK AT THE BUDGET
REVIEW DOCUMENT AND OTHER
MATERIALS WE HAVE PROVIDED ,
AND ENGAGE WITH CENTRAL STAFF
OUTSIDE OF COMMITTEE. WE HAVE
TRIED TO WALK THROUGH HOW TO
USE THAT DOCUMENT AND WHY WE
CREATED IT IN COMMITTEE, BUT
THE NEXT -- THE BALL IS NOW IN
YOUR COURT TO THINK ABOUT WHAT
IS THIS INFORMATION? WHERE
OTHER THINGS YOU'RE SEEING
THAT THESE ARE CRITICAL
SERVICES THAT WE MUST PROTECT,
AND WHERE ARE AREAS WHERE WE
NEED TO KNOW MORE ABOUT
OUTCOMES AND ACCOUNTABILITY,
AND WHERE ARE AREAS THAT MIGHT
MATTER TO PEOPLE, BUT MAY NOT
BE AS HIGH OF A PRIORITY IN THE
CONTEXT OF FACING DIMINISHING
RESOURCES AND SO I REALLY
INVITE YOU TO REACH OUT TO THE
CENTRAL STAFF ANALYSTS ASSIGNED
TO DEPARTMENTS THAT ARE IN YOUR
COMMITTEE OR DEPARTMENTS THAT
ARE A PRIORITY FOR YOU TO HELP
YOU GET PREPARED FOR MAKING
HARD DECISIONS THIS FALL BUT
COMING UP NEXT, YOU WILL BE
MAKING SOME MIDYEAR
SUPPLEMENTAL BUDGET DECISIONS
IN JULY, AND AUGUST, AND WE
REALLY WANT TO SET THOSE
CONVERSATIONS UP TO THINK ABOUT
BOTH THE SHORT AND LONGER-TERM
IMPACTS OF THOSE MIDYEAR
DECISIONS AND HOW THAT PLAYS
INTO BALANCING. THERE WILL ALSO
BE ANOTHER REVENUE FORECAST
UPDATE IN AUGUST AND IN AUGUST,
CHAIR STRAUSS HAS PLANNED TO
HAVE A PRESENTATION FOR WE WILL
WALK THROUGH HOW BUDGET
DISCUSSIONS WILL GO IN
COMMITTEE AND WE'VE ALSO
PREPARED SOME IN OFFICE
BRIEFINGS.
>> THANK YOU. I SEE COUNCIL
MEMBER MOORE'S HAND UP. I'M
JUST GOING TO BRIEFLY STATE FOR
THE MIDYEAR SUPPLEMENTAL BUDGET
LEGISLATION, WE WILL LEAVE THIS
IN FINANCE, NATIVE AMERICAN AND
TRIBAL GOVERNMENTS COMMITTEE
AND THEN VOTE ON IT IN THE NEXT
SELECT GOVERNMENT COMMITTEE IN
AUGUST SO JUST UNDERSTANDING
THAT. COUNCIL MEMBER MOORE.
>> THANK YOU VERY MUCH. THAT
WAS HELPFUL. I WANT TO SAY THIS
IS VERY HELPFUL PRESENTATION.
IN FACT, ALL OF YOUR
PRESENTATIONS HAVE BEEN
INCREDIBLY HELPFUL, SO THANK
YOU SO MUCH FOR THE CARE YOU
ARE TAKING WITH THESE AND THE
CLARITY . QUICK QUESTION. I AM
ASSUMING WHEN WE ARE TALKING
ABOUT LOOKING AT PULLING FROM
JUMPSTART, POTENTIALLY PUTTING
THAT INTO THE GENERAL FUND,
THAT YOU WOULD PRESENT US WITH
A DETAILED ANALYSIS OF WHAT THE
TRADE-OFFS ARE TO THE PROGRAMS
THAT WOULD BE AFFECTED LIKE
HOUSING, EDI , ECONOMIC
DEVELOPMENT AND GREENER DEAL.
>> YES, IF ASKED THE QUESTION.
AT SOME POINT THERE IS SO MUCH
INFORMATION IN THE BUDGET, SO
WHAT WE PROVIDED IN THE BUDGET
REVIEW DOCUMENT IS HOW THOSE
FUNDS ARE CURRENTLY BEING
ALLOCATED AND WHAT THEY'RE
BEING SPENT ON. IF YOU WANT TO
HAVE A SPECIFIC SET OF
INFORMATION OF WHAT WOULD
HAPPEN IF WE DID X, WE CAN
CERTAINLY PROVIDE THAT BUT WE
ARE LOOKING TO YOU TO TEASE OUT
WHERE TO FOCUS OUR ATTENTION
BECAUSE THERE ARE A LOT OF
DIFFERENT AREAS WE CAN PURSUE
AND A LOT OF DIFFERENT WAYS
THAT COULD GO SO I'M HAPPY TO
TALK WITH YOU IF THERE ARE A
COUPLE OF SCENARIOS YOU WOULD
LIKE TO PLAY OUT TO UNDERSTAND
THE IMPLICATIONS OF IF WE
PULLED THE LEVER IN THIS
DIRECTION OR THAT DIRECTION,
HAPPY TO DO THAT.
>> THANK YOU. THAT WOULD BE
VERY HELPFUL, AND THEN THE
OTHER QUESTION -- YOU RAISED
THE POINT ABOUT WHEN THE MAYOR
TRANSMITS THE EXECUTIVES
LEGISLATION. IF WE DON'T
NECESSARILY AGREE WITH HOW THAT
HAS BEEN DONE, HOW HELPFUL CAN
YOU BE WITH US IN PULLING OUT
THOSE THREADS?
>> THAT IS MUCH OF WHAT CENTRAL
STAFF IS DOING, SO WHEN WE
RECEIVE THE BUDGET, WE WILL
LOOK AT IT AND DO A REVIEW AND
PRESENTATIONS . YOU WILL SEE
OUR TEAM FOCUSING A LOT ON IS
IT SUSTAINABLE. IS THIS A SHORT
OR LONG-TERM DECISION, AND WE
WILL LOOK AT HOW THE PROPOSAL
COMPARES TO CURRENT LAW, AND
WHAT ARE THE TRADE-OFFS OF
THAT, SO ABSOLUTELY, TOM HAS
WHAT I WOULD SAY IS NOW A
TRADITION OF THE ANNUAL GENERAL
FUND BALANCING ANALYSIS THAT IS
TYPICALLY FOLLOWED BY AN
ANALYSIS OF HOW THE JUMPSTART
FUND IS PROPOSED TO BE USED,
ANY PROPOSED CHANGES TO THE
POLICY SO WE ARE ABSOLUTELY
DOING THAT WORK FOR THE COUNCIL
AND THEN WE WILL LOOK AT OTHER
ISSUES SPECIFIC TO DEPARTMENT
CHANGES AND IDENTIFY POLICY
OPTIONS WERE APPROPRIATE OR
SOMETIMES JUST HIGHLIGHT THIS
IS A CHANGE WE HAVE NOT
NECESSARILY IDENTIFIED A
SPECIFIC DIFFERENT CHOICE TO
MAKE, LIKE AT THE MOMENT IN
TIME, BUT WANT TO MAKE SURE
COUNSEL IS AWARE AND THEN IF
YOU DON'T AGREE, WE WOULD TRY
TO CONTINUE TO DO WORK TO
IDENTIFY WHAT THE ALTERNATIVES
ARE, OR WHAT THE CONSEQUENCE
WOULD BE OF REJECTING THAT
PROPOSAL.
>> I SEE OTHER HANDS. I WILL
CALL ON YOU IN JUST A SECOND
JUST TO SAY, THAT WAS A VERY
GOOD QUESTION BECAUSE WHAT YOU
JUST SPOKE ABOUT IS THE WORK
THAT WE ALL NEED TO BE DOING
OVER THE NEXT TWO MONTHS TO USE
THE BUDGET REVIEW DOCUMENT TO
ASK SPECIFIC QUESTIONS OF
CENTRAL STAFF SO THAT WE HAVE
THE INFORMATION READY BEFORE
FALL. COUNCIL MEMBER RIVERA.
>> THANK YOU. I TOO WANT TO
LEND MY GRATITUDE TO CENTRAL
STAFF AND TO YOU AND TOM FOR
THE GREAT PRESENTATIONS TODAY.
I THINK IT WAS A GREAT WAY TO
ENTER THE BUDGET PROCESS SO I
APPRECIATE CHAIR BRINGING THIS
BEFORE -- TO US THIS MORNING
AND I ALSO WANT TO UNDERSCORE
AND APPRECIATE YOU SAYING THIS
IS GOING TO BE HARD WORK. IT IS
HARD WORK AND I THINK IT IS
HARD WORK BECAUSE I SEE VALUE
IN EVERYTHING THAT THE CITY
DOES, AND THEN THE REALITY OF
WE CAN'T DO IT ALL, AND I HATE
TO BE THE PERSON THAT HAS TO
HELP WITH YOU ALL COLLEAGUES
DETERMINE WHAT RIGHTSIZING WE
NEED TO DO, BUT I WANT TO CALL
IT OUT UP FRONT THAT IT IS HARD
WORK. I SEE VALUE IN ALL THE
WORK AND YET, THE REALITY IS WE
CANNOT DO ALL THE WORK BECAUSE
WE DON'T HAVE ALL THE FUNDING
TO DO SO AND THAT IS WHAT MAKES
IT HARD WORK THAT THE VALUE IS
THERE. THANK YOU.
>> COUNCIL PRESIDENT.
>> I WANTED TO SAY THANK YOU
ALSO. I MEAN, THIS IS THE GIFT
THAT KEEPS ON GIVING. JUST
TODAY I REFERRED TO IT. COUNCIL
MEMBER MOORE, YOUR POINT WAS
REALLY WELL TAKEN WHEN YOU JUST
SAID WILL WE BE GETTING
INFORMATION ABOUT HOW THE
JUMPSTART FUNDS ARE BEING USED
FOR HOUSING ET CETERA BECAUSE A
COUPLE MEETINGS AGO I THINK IT
WAS IN YOUR MEETING, YOU DID
ASK THE PRESENTERS FOR
INFORMATION ABOUT THE SOURCES
OF FUNDING FOR HOUSING, AND
HAVE YOU GOTTEN THAT
INFORMATION YET?
>> I HAVE THAT INFORMATION.
BUT, I'M ALSO INTERESTED IN
THE OTHER PIECES.
>> I UNDERSTAND YOU ARE
INTERESTED IN THE WHOLE THING.
WE CAN TALK OFF-LINE ABOUT THE
INFORMATION YOU RECEIVED
BECAUSE I AM --
>> SURELY.
>> THANKS.
>> WITH THAT I JUST HAVE TO SAY
, SUCCESS IS NOT BY ACCIDENT
AND JUST THE LEVEL OF WORK THAT
BOTH OF YOU HAVE DONE FOR THIS
COMMITTEE MEETING IS ABOVE AND
BEYOND WHAT IS TYPICALLY ASKED
OF THEM. THIS IS JUST ONE OF
MANY MEETINGS WE'VE ASKED THEM
TO PREPARE IN ADDITION TO THE
BUDGET REVIEW DOCUMENT SO JUST
GRATITUDE TO YOU FOR ENGAGING
IN THE FALL BUDGET SEASON IN
SPRINGTIME AND I THINK WHAT YOU
ALL RECOGNIZE, WHAT WE ALL GOT
TO SEE FIRSTHAND WITH TOM TODAY
IS THE NUMBER OF YEARS THAT HE
HAS WORKED HERE IN THE LEVEL OF
EXPERTISE THAT HE HAS. HE IS
ABLE TO DO FINANCIAL ANALYSIS
IN REAL TIME BEFORE YOU IN
COMMITTEE, AND SO THAT IS NOT A
SKILL OR SET OF KNOWLEDGE THAT
EVERYONE OR MANY PEOPLE HAVE SO
I WANT TO HIGHLIGHT THAT IT
SEEMED VERY NORMAL AND NATURAL
FOR YOU TO DO THAT, BUT THERE
ARE VERY FEW PEOPLE WHO CAN
ACTUALLY DO THAT. WITH THAT,
THE LAST THING I WILL SHARE IS
THE CALL TO MEET WITH CENTRAL
STAFF TO ASK THE QUESTIONS THAT
YOU NEED INFORMATION FOR BEFORE
WE GET TO FALL. TAKE THOSE
MEETINGS NOW. I WILL BE MEETING
WITH EACH OF YOU. IF I HAVE
ALREADY MET WITH YOU I WILL
MEET WITH YOU AGAIN AND ANY
FURTHER QUESTIONS? THANK YOU
VERY MUCH. WITH THAT, THIS DOES
CONCLUDE THE WEDNESDAY , JUNE
5th, 2024 MEETING OF THE SELECT
BUDGET COMMITTEE MEETING. THE
NEXT MEETING IS SCHEDULED FOR
WEDNESDAY, AUGUST 7th, 2024.
THE NEXT FINANCE, NATIVE
COMMUNITIES AND TRIBAL
GOVERNMENT COMMITTEE WILL BE
HELD ON MONDAY, JUNE 17th AT
9:30 A.M., RESCHEDULED BECAUSE
OF THE JUNETEENTH HOLIDAY.
THANK YOU FOR ATTENDING. IF
THERE IS NO FURTHER BUSINESS TO
COME BEFORE THE COMMITTEE, WE
WILL ADJOURN. HEARING NO
FURTHER BUSINESS, WE ARE
ADJOURNED.