>> GOOD MORNING. THE MAY 1st,
2024 FINANCE, NATIVE
COMMUNITIES AND TRIBAL
GOVERNMENTS COMMITTEE MEETING
WILL COME TO ORDER. WILL THE
CLERK PLEASE CALL THE ROLE?
>> CATTLE ?
>> HERE.
>> MORALES ?
>> HERE.
>> PRESIDENT NELSON? RIVERA?
>> PRESENT.
>> CHAIR STRAUSS ?
>> PRESENT. COUNCILMEMBER
NELSON IS EXCUSED.
>> FOUR PRESENT, ONE EXCUSED.
IS MAY 1st, 10 YEARS AFTER THE
PASSAGE OF THE MINIMUM WAGE IN
SEATTLE , A GOOD DAY. WE HAVE
FIVE ITEMS ON THE AGENDA, A
DISCUSSION ON THE HUMAN
SERVICES AGING AND DISABILITIES
SERVICES OFFICE LEASE AND RENT,
COUNSEL BILL 1200 -- -- AND A
BREAKING DISCUSSION ON
LEGISLATION TO ADDRESS
UNANTICIPATED DEFENSES AND
CORRECT ACCOUNTING ERRORS WHICH
WILL RESULT IN SPENDING
EXCEEDING THE BUDGET CONTROL OF
THE BUDGET AUTHORITY. COUNCIL
BILL 120-0774 -- UNEXPENDED
APPROPRIATIONS FOR THE 2023
BUDGET AND THE 2024 BUDGET.
2019 TO 2024 BUDGET REVIEW
PRESENTATION BY CENTRAL STAFF.
BEFORE WE BEGIN, IF THERE IS NO
OBJECTION, THE AGENDA WILL BE
ADOPTED. HEARING NO OBJECTION,
THE AGENDA IS ADOPTED AND
COUNCILMEMBER NELSON IS IN
ATTENDANCE. WE WILL OPEN THE
HYBRID PUBLIC COMMENT TIME
WHICH SHOULD RELATE TO THE
AGENDA. HOW MANY PEOPLE ARE
SIGNED UP ?
>> ONE IN PERSON .
>> TWO MINUTES, IF WE EXCEED 15
MEMBERS OF THE PUBLIC, WE WILL
REDUCE IT FROM TWO TO ONE
MINUTE. IF WE EXCEED 20 PEOPLE,
WE WILL REDUCE IT TO 30
SECONDS. EACH SPEAKER WILL HAVE
TWO MINUTES AND WE WILL START
THE IN-PERSON SPEAKERS, FIRST.
CLARK I WILL READ THE
INSTRUCTIONS, IT WILL BE
MODERATED, 20 MINUTES, SPEAKERS
WILL BE CALLED IN THE ORDER IN
WHICH THE REGISTRANT SPEAKERS
WILL ALTERNATE -- WE ARE NOT
GOING TO ALTERNATE BECAUSE WE
HAVE ONE PERSON. PUBLIC COMMENT
PERIOD IS OPEN. SIDNEY BOLTON.
>> THANK YOU FOR -- I AM THE
CHIEF FINANCIAL OFFICER OF THE
SEATTLE ART MUSEUM,
REPRESENTING AND WORKING WITH
THE MUSEUM DEVELOPMENT
AUTHORITY ON THE PROPOSED IN
THE AVON REFINING. WE HAVE BEEN
LOOKING FOR WOULD BE ELIGIBLE
FOR REFINANCING, NOT SURPRISING
OR UNIQUE TO US, THE PANDEMIC
HIT THE MUSEUM HARD AND IT IS
TAKING A COUPLE YEARS TO FULLY
COME BACK. WE BELIEVE THAT A
HEALTHY ARTS AND CULTURE
ECOSYSTEM IS A NECESSARY
ELEMENT OF A THRIVING AND
VIBRANT CITY. AND WE PLAY A
ROLE IN THE CITY'S ECONOMIC
WELL-BEING. THE SAVINGS FROM
THIS REFINING WILL BE A
CRITICAL SOURCE OF FUNDING FOR
THE MUSEUM IN THE YEARS TO COME
AND THE TIMING COULD NOT BE
BETTER WITH THE EXCITING EVENTS
ON THE HORIZON , STARTING WITH
THE OPENING OF THE WATERFRONT
NEXT YEAR. WE ARE EXCITED TO
CONTRIBUTE TO THIS IMPORTANT
INITIATIVE DIRECTLY AT THE
MUSEUM DOWNTOWN AND THE OLYMPIC
SCULPTURE PARK. I WOULD BE
REMISS IF I DID NOT TAKE THIS
OPPORTUNITY TO THANK OUR
COLLEAGUES IN THE CITY, THE
MANAGEMENT TEAM AND FINANCE
DEPARTMENT, AND THE LEGAL FOR
ALLOWING US TO PIGGYBACK ON THE
IMPORTANT WORK THEY ARE DOING
THIS TIME OF YEAR FOR THE
PROCESS. IT IS INCREDIBLY BUSY
FOR THEM AND WE GREATLY
APPRECIATE ALL OF THEIR
ASSISTANCE AND SUPPORT IN
GETTING TO THIS POINT. THANK
YOU AGAIN FOR YOUR TIME THIS
MORNING.
>> WITH NO ADDITIONAL SPEAKERS
PRESENT VIRTUALLY OR
PHYSICALLY, WE WILL MOVE ON TO
THE NEXT AGENDA ITEM. CLERK ,
PLEASE READ THE SHORT TITLE OF
THE FIRST ITEM.
>> ITEM 1, AGING AND DISABILITY
SERVICES WRITTEN OFFICE LEASE
FOR BRIEFING AND DISCUSSION.
>> WE HAVE HUMAN SERVICES
DEPARTMENT HERE TO PRESENT ON
THE LEASE AND RENT. I WANT TO
GIVE THE OPENING REMARK AS WHY
THIS ISN'T INFORMATIONAL ITEM
AND NOT A COUNCIL BILL , OR
TEMPORARY BILL , BECAUSE THE
LEASE HAS NOT BEEN TRANSMITTED
TO US AT THIS TIME , THAT IS
OKAY. WE HAVE SOME TIME ,
BECAUSE OF THE STRUCTURE OF HOW
WE ARE DOING BUDGET REFORM AT
THE CITY COUNCIL, AND USING THE
SELECT BUDGET COMMITTEE FOR THE
TWO MEETINGS IN JUNE AND THE
OTHER MEETING IN MAY, FOR THE
NEXT THREE MEETINGS, WE WILL BE
IN SELECT BUDGET MEETING. FOR
US TO PASS THIS LEASE , BEFORE
WE NEED TO EXECUTE IT, AS WELL
AS, TO KEEP THIS LEASE, THE
FINEST NATIVE COMMUNITIES IN
TRIBAL GOVERNMENTS AS OPPOSED
TO MOVING IT TO SELECT
COMMITTEE -- WE ARE BREATHING
THIS ITEM FOR YOU TODAY SO WE
MAY -- TWICE BEFORE VOTING ON
IT. TODAY IS THE TIME TO GET
FAMILIAR WITH THIS LEASE. SO
THAT WE ARE ABLE TO MOVE
FORWARD ON JUNE SO WE CAN
EXECUTE IT ON TIME. A COUPLE
COMMENTS, I HAD A LOT OF
QUESTIONS ABOUT WHY WE HAVE A
LEASE IN RENTON, HOW WE ARE --
IF WE ARE USING GENERAL FUND, I
CAN TELL YOU , TOP LINE, WE ARE
USING FEDERAL DOLLARS TO ENTER
MOMENT FEDERAL PROGRAMS -- THIS
IS NOT A HIT TO THE GENERAL
FUND AND THE PEOPLE , WE ARE
SERVING THROUGH OUR FEDERAL
DOLLARS AS PER THE FEDERAL
REQUIREMENTS THROUGHOUT KING
COUNTY AND HAVING A SPACE IN
RENTON ALLOWS US TO ACHIEVE
THESE GOALS. THAT SAID , I WILL
NOW TURN IT OVER TO OUR MEMBERS
OF HST. -- HSD. FIRST, RECORDS
FROM STAFF.
>> BRIEF OPENING REMARKS. HSD
IS ABOUT TO DESCRIBE TO YOU ,
THE CITY DOES REQUIRE THAT SOME
LEASES HAVE AUTHORIZATION BY
CITY COUNCIL FOR THE EXECUTIVE
ENTERS INTO SUCH A LEASE AND
HSD WILL DESCRIBE THOSE TERMS .
NOT A TYPICAL FOR CITY COUNCIL
TO BE CONSIDERING CERTAIN TYPES
OF LEASES AND ASKING TO APPROVE
THEM. THIS LEASE IS A BIT
UNUSUAL BECAUSE IT IS FOR
OFFICE SPACE OUTSIDE OF THE
CITY OF SEATTLE. BUT HSD WILL
EXPLAIN THE BUSINESS RATIONALE
AND THE FUNDING THAT DRIVES
THAT DECISION. I WILL TURN IT
OVER TO THEM. THANK YOU.
>> GOOD MORNING. WE WILL
INTRODUCE OURSELVES, I MAY ASK
FOR SUPPORT TO MAKE SURE THIS
IS BEING PREVIEWED
APPROPRIATELY. I AM A DIRECTOR,
NOT SMART WITH TECHNOLOGY.
>> DIRECTOR, I HAVE OPERATED
POWERPOINT FROM THE DAIS .
DON'T WORRY. LET'S DO
INTRODUCTIONS AND IF THERE IS
AN ISSUE, WE WILL TAKE CARE OF
IT.
>> TONYA KIM.
>> MARY MITCHELL.
>> CHIEF FINANCIAL OFFICER AT
THE HUMAN SERVICES DEPARTMENT.
>> CHIEF FINANCE OFFICER ,
HUMAN SERVICES DEPARTMENT.
>> KAREN , WITH THE FINANCE AND
ADMINISTRATIVE SERVICES
DEPARTMENT, MY ROLE IS REAL
ESTATE AND PLANNING SERVICES
DIVISION DIRECTOR.
>> MY PHONE A FRIEND COME IN
PERSON, I WILL GET US STARTED
WHILE WE BRING UP THE DECK. WE
HAVE TWO DEPARTMENTS HERE AND
WE WILL BEGIN WITH SOME OPENING
REMARKS. THAT ARE VERY BRIEF.
SO, REALLY I THINK YOU HAVE HIT
THE PUNCHLINE. THERE IS FEDERAL
DOLLARS THAT WE IMPLEMENT ON
BEHALF OF THE COUNTY THROUGH
THE STATE AND THE FEDERAL
GOVERNMENT . THE CITY OF
SEATTLE IS PRIVILEGED TO SERVE
IN THIS FUNCTION. WE WILL GO
INTO MORE DETAIL ABOUT THAT.
THIS IS AN OPPORTUNITY FOR US
TO TALK PUBLICLY ABOUT WHAT WE
DO IN OUR AGING AND DISABILITY
SERVICES DIVISION. THANK YOU.
WITH THAT, WE ARE GOING TO
COVER SEVERAL DIFFERENT ITEMS ,
BUT FIRST , I WILL START BY
THANKING CHAIR STRAUSS FOR
ALLOWING US TO BE HERE TODAY.
IF THERE WERE FURTHER QUESTIONS
, HAPPY TO TAKE THAT HERE TODAY
AND FOLLOW UP OUTSIDE OF THIS
MEETING COME IN BETWEEN A
POTENTIAL VOTE . WE HAVE
SEVERAL DIFFERENT ITEMS AND WE
WILL TALK ABOUT THE HUMAN
SERVICES DEPARTMENT, THE
SPECIFIC PROGRAM AREA. AGAIN,
GOING TO WIPE SOUTH KING COUNTY
AND RENTON , ADVANTAGES ,
INCLUDING SAVING SOME MONEY. WE
HAVE THE LEASE RENEWAL AND ,
JUST LOGISTICS. SO , WITH THAT
, I GET TO SHOWCASE OUR
DIVISION DIRECTOR , MARY
MITCHELL , SHE WILL PRESENT THE
MAJORITY OF THAT PRESENTATION .
WE WILL THEN FOCUS ON THE
FINANCIAL PEACE AND THE LEASE.
GO AHEAD.
>> THANK YOU, DIRECTOR KIM. THE
OLDER AMERICANS ACT,
ADMINISTERS THE FEDERAL
INVESTMENTS TO SUPPORT OLDER
ADULTS AT THE LOCAL LEVEL. HSD
AGING AND DISABILITY SERVICES
DIVISION HAS OPERATED SINCE
1973 AS THE AREA AGENCY ON
AGING FOR KING COUNTY DOING
INTERLOCAL AGREEMENT WITH KING
COUNTY. WE ARE LEGALLY
OBLIGATED TO PROVIDE SERVICES
FOR ALL OF KING COUNTY , FOR
OTHER FEDERAL AND STATE
MANDATED PROGRAMS , THE LARGEST
BEING MEDICAID. IN KING COUNTY,
WE SERVE ABOUT A QUARTER OF THE
STATES AGING POPULATION, ABOUT
50,000 CLIENTS. TWO THIRDS OF
THE CLIENTS RESIDE OUTSIDE OF
THE CITY OF SEATTLE. OF THOSE
50,000 CLIENTS, ABOUT 14,000 IN
OUR LARGEST PROGRAM, MEDICAID ,
AND 50% OF THOSE CLIENTS RESIDE
IN THE CITY OF SEATTLE AND 50%
IN SOUTH KING COUNTY. WE ALSO
CONTRACT WITH FOUR COMMUNITY
PARTNERS TO HELP US WITH THE
CASE MANAGEMENT SERVICES. WITH
THE GOAL OF HELPING CLIENTS TO
AGE WITH GRACE AND DIGNITY IN
THE HOMES AND IN THE
COMMUNITIES THEY LOVE INSTEAD
OF IN INSTITUTIONALIZED
SETTINGS. I WOULD LIKE TO GIVE
YOU A SNAPSHOT OF THE SERVICES
WE PROVIDE AND THE OLDER
AMERICAN ACT REQUIRES THAT WE
FOCUS ON POPULATIONS THAT ARE
MOST IN NEED AND ARE AT RISK OF
INSTITUTIONALIZED CARE.
SERVICES FROM HOME DELIVERED
MEALS, I WILL HIGHLIGHT THE
CONGREGATE MEALS, IF YOU THINK
SENIOR CENTERS , WHICH HELPS
REDUCE SOCIAL ISOLATION , WHICH
CAN LEAD TO DEPRESSION AND A
DECLINE IN CLIENT'S HEALTH.
OUR FOCUS POPULATION MOST IN
NEED ARE COMMUNITIES OF COLOR
AND INDIVIDUALS WHERE ENGLISH
IS NOT A PRIMARY LANGUAGE. YOU
MAY BE WONDERING , WHY DO WE
NEED AN OFFICE OUTSIDE OF
SEATTLE? THAT IS A GREAT
QUESTION. OPERATIONALLY, WE
HAVE DIVIDED THE COUNTY IN
HALF. CLIENT DATA FROM DOWNTOWN
TO THE NORTH COUNTY BORDER ARE
SERVICED FROM OUR OFFICE IN
SEATTLE MUNICIPAL TOWER ON THE
51st FLOOR , AND FOR OUR SOUTH
OFFICE, WE HAVE ABOUT 103 TEAM
MEMBERS THAT WERE -- WORK IN
SOUTH KING COUNTY AND THE
PROVIDE SERVICE TO SOUTH KING
COUNTY, AUBURN. YOU CAN IMAGINE
THE IMPACT TO OUR CASE MANAGERS
WHO ARE REQUIRED TO PERFORM
ABOUT 750 IN HOME ASSESSMENTS
PER MONTH . IF THEY HAVE TO
DRIVE FROM AUBURN TO DOWNTOWN
SEATTLE , FIND PARKING FOR
THEIR PERSONAL VEHICLES, PAY
FOR THE PARKING COME AND GO
BACK OUT TO THE COUNTY, THEY
WILL NOT BE ABLE TO MEET THEIR
MANDATED IN-HOME ASSESSMENTS
EACH MONTH. THAT IS FOR ABOUT
5000 CLIENTS. THAT THEY PROVIDE
THOSE CASE MANAGEMENT SERVICES
FOR. OUR RENTON OFFICE ALSO
SERVES AS OUR TRAINING FACILITY
. WE ARE LEGALLY REQUIRED TO
PROVIDE TRAINING FOR OUR
CONTRACTED PROVIDERS AND WE
ALSO DO NEW EMPLOYEE TRAINING
FOR THEIR NEW EMPLOYEES. WE
HOST COMMUNITY MEETINGS. AND
THERE IS PARKING, EASIER ACCESS
FOR THE WORK ON THE SOUTH END.
IN 1993, OUR FIRST OFFICE
OPENED AND IN 2024 WE MOVED TO
OUR CURRENT LOCATION IN RENTON.
WHY ARE WE LOOKING TO MOVE TO A
NEW LOCATION ? GREAT QUESTION .
OUR CURRENT LEASE STOPS ON
AUGUST 31st OF 2024. OUR
CURRENT SPACE NEEDS SIGNIFICANT
UPGRADING . THE POTENTIAL NEW
LOCATION IN THE SLIDE, OFFERS
TWO KEY BENEFITS THAT WE NEED .
INCREASED ACCESS TO PUBLIC
TRANSPORTATION FOR OUR CLIENTS
WHO ARE OLDER ADULTS ,
INDIVIDUALS WITH DISABILITIES
THAT MAY RELY ON PUBLIC
TRANSPORTATION, WILL BE ACROSS
THE STREET FROM RENTON PARK AND
RIDE WITH ROUTES TO DOWNTOWN
SEATTLE, SOUTH COUNTY, AND THE
EASTSIDE. ALSO , SECURITY IS A
MAIN CONCERN. WE EXPERIENCED A
RECENT BREAK-IN AT OUR CURRENT
LOCATION AND WE ARE ON THE
FIRST FLOOR IN A DARK,
COMMERCIAL AREA. IT IS A
FISHBOWL EFFECT AT NIGHT WHEN
YOU'RE WORKING IN THE OFFICE
WITH THE LIGHTS ON. EVEN WHEN
THE BLINDS ARE CLOSED, YOU FEEL
EXPOSED. THE NEW LOCATION , WE
WILL BE ON THE SEVENTH FLOOR
WITH INCREASED ACCESS IN A MORE
VISIBLE LOCATION. A HALF A MILE
FROM THE POLICE DEPARTMENT, AND
THAT JUST HELPS US WITH OUR
SECURITY ISSUES. LASTLY, THIS
MOVE , BECAUSE WE HAVE A
MEDICAID PROGRAM THAT IS A
FEDERAL PROGRAM, WE WILL BE
USING THAT SAVINGS FROM THAT
PROGRAM TO COVER THIS IN THE
GENERAL FUND. WITH THAT, I WILL
TURN IT OVER TO OUR CFO TO TALK
ABOUT THE BUDGET.
>> WE ARE ESTIMATING
APPROXIMATELY $600,000 IN
SAVINGS OVER THE TEN-YEAR LIFE
OF THE NEW LEASE. WHAT YOU ARE
SAYING ON THIS LIGHT ARE TWO
LEASE OPTIONS, CURRENT LOCATION
IN TIMES SQUARE AND THE
PREFERRED LOCATION AT THE
TRITON TOWERS. I JUST WANT TO
BRIEFLY TOUCH ON , AGAIN, THE
TITLE 19 FEDERAL GRANT FUNDS
ARE SPECIFICALLY -- THEY ALLOW
USE AS A COVERED EXTENSIVELY IN
FEDERAL UNIFORM GUIDANCE. IN
SIMPLE TERMS , WHAT THAT MEANS
, WE CAN ONLY USE ANY SAVINGS
OR FUND BALANCE FOR SERVICES
THAT ARE COVERED UNDER THE
CONTRACT AND GRANT SERVICE --
THE GRANT THAT WE HAVE WITH THE
STATE. THAT INCLUDES ALL OF THE
SERVICES THAT MARY MITCHELL HAS
JUST COVERED, CASE MANAGEMENT
AND HOME SERVICES, ET CETERA.
IT ALSO COVERS BUILDING SPACE ,
LEASE , AND SOME OF OUR
INDIRECT COSTS FROM THE CITY,
INCLUDING I.T. SO, WE ARE
ESTIMATING THE NEW LEASE WILL
REDUCE , NOT ONLY COST SAVINGS
, BUT THE BIG DRIVER FOR THE
REDUCED COST IS SMALLER
FOOTPRINT. ABOUT 35% LESS.
WHILE THERE ARE SOME ONE-TIME
COST ESTIMATED ABOUT $386,000 ,
WE ALSO EXPECT THAT THOSE WILL
BE OFFSET BY COST THAT WE WILL
NOT BE SPENDING ON NEW
FURNITURE , SO WE ARE GOING TO
INHERIT SOME OF THE PREVIOUS
TENANT'S IMPROVEMENTS AND THAT
INCLUDES OFFICE FURNITURE AND
SUPPLIES. THE MAJORITY OF THOSE
ONE-TIME COSTS ARE RELATED TO
SETTING UP THE TECHNOLOGY
INFRASTRUCTURE THAT STAFF WILL
NEED TO INTERACT WITH THE CITY
SYSTEMS IN THAT LOCATION. ALSO
, SOME SECURITY DOORS THAT ARE
REQUIRED FOR HIPAA COMPLIANCE.
IF THERE ARE NO QUESTIONS, I
WILL TURN IT OVER TO KAREN ,
OUR PARTNER AT F.A.S.
>> IF I MAY INTERJECT, OFF
SCRIPT , WE ARE BEING EXTRA
PRUDENT AND , I THINK , WE ARE
ALWAYS WANTING TO ENSURE WE ARE
COMPLIANT WITH OUR GRANT
FUNDING, IN PARTICULAR , AGAIN,
UNDERSCORING THE FUNDS GO TO
CASE MANAGEMENT AND ALL THE
PROGRAM THAT IS ASSOCIATED WITH
THIS. THINGS LIKE THE NURSING
SERVICES, THE PERSONAL SERVICES
, HOME CARE, CAREGIVER
TRANSPORTATION , ALL OF THOSE
DIFFERENT ITEMS CAN GO TOWARDS
THIS, THE FUNDS CANNOT SUPPLANT
GENERAL FUND OR OTHER EXISTING
PROGRAMS THAT WE CURRENTLY
HAVE. IT IS JUST MAKING SURE
THAT THE FUNDS GO TO THE
SERVICES AND THE RELATED COST
ASSOCIATED WITH THAT , SUCH AS
PERSONNEL AND RENT, JUST
WANTING TO SAY THAT. THANK YOU.
>> THANK YOU. A FEW BASICS THAT
BRING US TO THE COMMITTEE
TODAY. HSD REQUESTED THAT FAS
DID A SEARCH FOR SUITABLE
OFFICE SPACE FOR THE AGING AND
DISABILITY SERVICES DIVISION IN
RENTON. THE PROPERTY, TRITON
TOWERS, THAT ALL OF THE
REQUIREMENTS OF HSD . MAINLY,
THE ENHANCED SECURITY THAT YOU
HAVE HEARD ABOUT WITH THE
OFFICE LOCATED ON A HIGHER
FLOOR. THE PROPERTY OFFERS
CLOSE PROXIMITY TO MASS TRANSIT
SERVICES FOR BOTH CLIENTS AND
EMPLOYEES. IT OFFERS AMENITIES
FOR BOTH CLIENTS AND EMPLOYEES.
THE NEW OFFICES , AS YOU HAVE
HEARD, REPRESENT ABOUT 65%
FOOTPRINT DOWNSIDES FROM THE
CURRENT EXISTING LEASE SPACE.
THE CITY AND TRITON TOWERS HAVE
REACHED AGREEMENT ON THE TERMS
OF THE LEASE , FROM MAC A
LEGISLATIVE PERSPECTIVE, THE
SEATTLE MUNICIPAL CODE, 3.127,
REQUIRES THAT , FOR CITY OFFICE
SPACE OVER 5000 SQUARE FEET,
AND ON LEASE FOR A TERM OF OVER
FIVE YEARS, MUST BE AUTHORIZED
BY THE CITY COUNCIL IN ORDER
FOR THE FAS DIRECTOR TO EXECUTE
THE LEASE . THIS NEW LEASE IS
FOR AN ADDITIONAL -- AN INITIAL
10 YEAR TERM AND CONTAINS TWO
OPTIONS FOR FIVE YEAR RENEWALS
EACH. THE SQUARE FOOT OF THE
SPACE AT TRITON TOWERS THREE IS
12,410 SQUARE FEET. LOOKING
AHEAD TO THE TIMELINES
ASSOCIATED WITH THE PROJECT, WE
FINALIZED THE LEASE TERMS IN
APRIL AND WE ARE HERE IN FRONT
OF THE COMMITTEE ON MAY 1st .
THE GOAL IS TO HAVE A
LEGISLATIVE PACKAGE SUBMITTED
TO FULL COUNCIL IN EARLY MAY.
WE ARE LOOKING AT A JUNE
TIMEFRAME FOR THE COMMITTEE
VOTES AND THE COUNCIL VOTES. AT
THIS POINT, IT IS TO BE
DETERMINED WHAT DATE THE LEASE
WOULD BE SIGNED AND OF COURSE ,
THAT IS PENDING FULL COUNCIL
APPROVAL. WHEN THE LEASE IS
SIGNED, THE OFFICE IMPROVEMENTS
WOULD BE MADE AND THE ADS UNIT
WOULD TRANSITION FROM ITS
EXISTING SPACE TO THE TRITON
TOWERS III PROPERTY WITH A
PROJECTED MOVE-IN DATE OF
SEPTEMBER 1st. WITH THAT, I
TURNED IT BACK TO THE DIRECTOR
, DIRECTOR KIM.
>> WHAT QUESTIONS DO YOU HAVE?
>> I WANT TO MAKE A COUPLE
STATEMENTS AND I WILL USE YOUR
LEASE AS AN EXAMPLE FOR OTHER
WORK THIS COMMITTEE WILL GO
THROUGH. COLLEAGUES , YOU MAY
NOTICE THIS IS HUMAN SERVICES
DEPARTMENT WORK. COMING TO MY
COMMITTEE. BECAUSE THE FINEST
NATIVE IMMUNITIES AND -- THE
FINANCE, NATIVE COMMUNITIES AND
TRIBAL GOVERNMENTS IS OF W IS
RESPONSIBLE FOR THE BACKBONE OF
THESE SERVICES THROUGH LEASES
AND FAS. HUMAN SERVICES DOES
THE GOOD WORK AND THIS
COMMITTEE TAKES UP ITEMS SUCH
AS LEASES . THIS IS WHY WE HAVE
FINANCE AND ADMINISTRATIVE
SERVICES AT THE END OF THE
TABLE. IN BRIEF, I WANT TO
REPEAT WHAT I HAVE HEARD. THIS
IS FEDERAL FUNDING THAT CANNOT
SUPPLANT GENERAL FUND, THIS
LEASE IS A DOWNSIDES , CLOSER
TO TRANSIT , IT HAS COST
SAVINGS , DESPITE AN INCREASE
ANNUALLY. IT IS A SAFER
BUILDING AND HAS INCREASED
HIPAA PROTECTIONS BECAUSE WE
HAVE TO PROTECT THE DOCUMENTS
WITHIN THE SPACE. COLLEAGUES, I
FEEL VERY COMFORTABLE WITH THIS
LEASE AND I WOULD LIKE TO
QUICKLY , WHEN WE RECEIVE THE
LEGISLATION , IF WE COULD GO
BACK TO SLIDE SEVEN.
COLLEAGUES, I USED SLIDE SEVEN
AS AN EXAMPLE OF HOW LEASES
CREATE COST SAVINGS IN THE LONG
RUN BUT OUR COST INCREASES
UPFRONT , THIS IS SOME OF THE
WORK WE ARE DOING WITHIN THE
BUDGET REFORM OF OUR CITY
BUDGET RIGHT NOW. WHERE WE HAVE
EMPTY SPACE IN SEATTLE
MUNICIPAL TOWER AND WE HAVE
LEASES IN PRIVATE BUILDINGS
THROUGHOUT THE CITY AND
THROUGHOUT THE DOWNTOWN CITY
HALL CAMPUS I CALL IT A CAMPUS
BECAUSE WE HAVE CITY OFFICES
AND THE BANK OF AMERICA
BUILDING , COLUMBIA TOWER, THE
CENTRAL BUILDING, AS WELL AS
SEATTLE MUNICIPAL TOWER , AND
I'M BEING REMINDED CITY HALL .
CITY HALL IS A FAS ADMINISTERED
SPACE I BRING THIS SLIDE TO YOU
BECAUSE IT IS MY DESIRE TO MOVE
THE LEASES IN THE CENTRAL
BUILDING, BANK OF AMERICA
TOWER, AND COLUMBIA TOWER, INTO
SMT AT THE RIGHT TIME. THIS
WILL CREATE SAVINGS IN THE LONG
RUN BUT IT DOES CREATE AN
INCREASE IN THE SHORT TERM. THE
LAST LINE OF THIS SLIDE IS THE
MOVING COST. THE TENANT
IMPROVEMENTS , WE DON'T HAVE
TO DO TENANT IMPROVEMENTS AT
THIS BUILDING IN TRITON TOWERS
BEFORE -- BECAUSE THEY ARE
COMPLETED AND WE ARE INHERITING
THE FURNITURE. EVEN IF WE WERE
MOVING A CITY DEPARTMENT FROM
BANK OF AMERICA TOWER INTO SMT,
THERE ARE TENANT IMPROVEMENTS
WE HAVE TO INCUR.
>> A CORRECTION, THE ANNUAL
RENT IN THIS CASE IS NOT
HIGHER.
>> THE ANNUAL RENT INCREASE IS
RIGHT .75 , CORRECT ?
>> I HAVE IT AS --
>> THAT IS WHAT IT SAYS ON THE
SLIDE.
>> SORRY, THAT IS RIGHT.
>> VICE CHAIR ?
>> THANK YOU FOR GOING THROUGH
THAT ON THE LEASES. I DID WANT
TO UNDERSCORE , IN THIS
PARTICULAR CASE, PRUDENT TO DO
THE REVIEW YOU ARE DOING ON THE
LEASES FOR THE OTHER SPACES .
ON THIS ONE, IT IS FEDERAL
FUNDING AND IT WILL NOT SAVE
THE CITY GENERAL FUND MONEY
BECAUSE IT NEEDS TO BE USED
BACK TOWARDS THE PROGRAM
BECAUSE IT IS FEDERAL MONEY. I
WANTED TO MAKE THAT DISTINCTION
CLEAR. BECAUSE SAVING MONEY ON
THIS LEASE IS NOT NECESSARILY
SAVING US MONEY FOR GENERAL
FUND BECAUSE IT DOES NEED TO BE
USED FOR THE FEDERAL ALLOWANCE.
BUT, YES , FOR OTHER LEASES, IT
WILL APPLY.
>> ANY OTHER QUESTIONS?
COUNCILMEMBER MORALES?
>> THANK YOU. ON THE SAME SLIDE
, JUST TO BE CLEAR, IT SAYS THE
RATE IS INCREASING PER SQUARE
FOOT BUT THE FOOTPRINT IS
SMALLER, THAT IS WHY THE TOTAL
ANNUAL RENT WILL BE SMALLER?
OKAY. YOU HAVE ALSO IDENTIFIED
COST -- ONE-TIME COST FOR THE
MOVING . CAN YOU TELL US IF THE
MOVE UPGRADES WILL BE DONE BY
FAS OR WILL YOU CONTRACT THOSE
SERVICES OUT?
>> FAS OVERSEES THE MOVE .
THERE ARE SOME COST ASSOCIATED
WITH PROVIDERS BUT FAS OVERSEES
IT AND SEATTLE I.T. DOES I.T.
WORK.
>> OF THE 103 EMPLOYEES IN THE
RENTON OFFICE, HOW WILL THEY BE
AFFECTED?
>> THEY ARE ON A TWO DAYS IN
OFFICE REQUIREMENT , SO WE HAVE
UNUSED SPACE RIGHT NOW. WE ARE
AT ABOUT 19,000 SQUARE-FOOT AT
OUR CURRENT LOCATION AND WE DO
NOT NEED THAT MUCH SPACE.
>> MAY I TAG ONTO THAT, THERE
IS IN HOMEWORK. THESE FOLKS ARE
ACCOMPLISHING. FEWER PEOPLE IN
THE OFFICE.
>> 95 ARE CASE MANAGERS THAT
COME INTO THE OFFICE WHERE THEY
MEET ADMINISTRATIVE NEEDS BUT
SPEND THE MAJORITY OF THE TIME
IN THE FIELD.
>> IF I COULD PIGGYBACK.
>> I WOULD LIKE TO KEEP ROLLING
THROUGH.
>> THE LAST QUESTION I HAVE,
RELATED TO THE NUMBER OF
OFFICES, CAN YOU SHARE HOW MANY
HSD OFFICES ARE IN THE CITY AND
OUTSIDE OF THE CITY LIMITS?
>> FOR HSD ?
>> YES.
>> WE ARE PRIMARILY LOCATED IN
THE SEATTLE MUNICIPAL TOWER. WE
ARE ALSO IN THE CENTRAL
BUILDING RIGHT NOW. AND WE HAVE
THIS RENTON OFFICE. I HAVE NOT
VISITED --
>> OKAY.
>> WE WILL COME BACK TO YOU AT
THE END.
>> I WILL FOLLOW UP.
>> GOOD MORNING. I WANTED TO
SAY THANK YOU FOR COMING. I
REALIZE THIS IS NOT THE HOUSING
AND HUMAN SERVICES COMMITTEE. I
WANTED TO TAKE AN OPPORTUNITY
TO SAY THANK YOU FOR THOSE THAT
DO THE WORK IN THAT AREA. AS A
SON OF A FATHER AND A MOTHER I
HAVE DONE THIS PROCESS THROUGH,
IN NEW YORK STATE AND WESTERN
NEW YORK, BUT I RECOGNIZE THE
HARDSHIPS OF THAT AND THE
SERVICE THIS HAS DONE , AND I
HOPE MOORE CAN TAKE ADVANTAGE
OF IT. I KNOW HOW DIFFICULT IT
IS TO DO THE OUTREACH. MY WIFE
SAID I MARRIED INTO A BOEING
FAMILY, I KNOW WHERE THIS
BUILDING IS . EVERYTHING YOU
HAVE BEEN SAYING ABOUT IT. IT
IS TRUE. I DO BELIEVE IT WOULD
BE A BETTER LOCATION. THANK YOU
FOR YOUR SERVICE. I SUSPECT
THAT , IF I REMEMBER RIGHT,
THAT IS AN OLD BOEING BUILDING
ORIGINALLY. YOU SEE HOW THINGS
HAVE CHANGED OVER THE YEARS. I
RECOGNIZE THE POINT MADE BY HR,
TOO . I HAVE TO NOTE, WE ARE
SHIFTING TO FOUR DAYS, AS WE
PLAN THESE THINGS OUT ,
HOPEFULLY WE TAKE INTO ACCOUNT
THE PENDULUM MAY SWING IN TERMS
OF WORKING FROM HOME , THAT IS
PART OF THESE CONSIDERATIONS AS
WE GO THROUGH THESE LEASES, WE
DON'T JUST ASSUME WE WILL BE
TWO DAYS FOREVER BECAUSE THE
EXECUTIVE AND COUNTY MAY FOLLOW
LEGISLATIVE DEPARTMENTS LEAD ON
THAT. OVERALL , I APPRECIATE
THE POINTS MADE IN TERMS OF
COMING BACK TO THE FINANCE
COMMITTEE. WE DO NEED TO DO THE
SMARTER. REGARDING THE OTHER
LOCATIONS. HOPEFULLY , THERE IS
OPPORTUNITIES -- THE POINT
ABOUT HAVING TWO OPERATIONS,
HOW BEST TO SERVE THE ENTIRE
CITY? WE RELOCATED OUR PLAN
OPEN HOUSE FROM CITY HALL TO
THE McCLURE MIDDLE SCHOOL.
THINGS LIKE THAT MAKE A
DIFFERENCE. I RECOGNIZE WHAT WE
HAVE WITH THE SMT BUT IT IS NOT
AS ACCESSIBLE AS ONE WOULD
THINK, IN PARTICULAR FOR
ELDERLY PEOPLE OR THOSE
SUPPORTING ELDERLY PEOPLE. I
APPRECIATE THE POINT MADE ON
THE FINANCE SIDE.
>> DIRECTOR KIM?
>> ONE NOTE OF CLARIFICATION,
WE CONSIDER, PER CITY POLICY ,
WHEN IN THE FIELD, THAT IS IN
OFFICE. MANY OF OUR COLLEAGUES
, CASE MANAGERS AND DIRECT
SERVICE PROVIDERS, HAVE,
THROUGHOUT THE PANDEMIC , ARE
IN THE FIELD OR IN OFFICE, BUT
THEY MAY NOT PHYSICALLY BE IN
THE SEAT. FIVE DAYS PER WEEK.
TO YOUR POINT --
>> UNDERSTAND THAT POINT. THERE
IS A HOST OF OFFICES THAT DO
SIMILAR THINGS AND I
ACKNOWLEDGE THAT POINT.
>> MINIMUM TWO DAYS IS NOT A
PROBLEM. WE ARE DOING THE WORK.
>> SOUNDS LIKE YOU MAY BE DOING
MORE.
>> THE SLIDE DECK SAYS THAT
SOURCE IS TITLE 19 FEDERAL
GRANT FUND BALANCE, WHEN I HEAR
FUND BALANCE, I THINK LEFT OVER
THIS TIME , NOT NECESSARILY
ONGOING. IS THAT FUND BALANCE
ONGOING AND THAT HALLS -- HAS
BEEN AND WILL ALWAYS BE THE
FUNDING SOURCE FOR THIS LEASE?
>> THE FUND BALANCE IS A RESULT
OF SIGNIFICANT SAVINGS FROM THE
STRUCTURAL ISSUE OF NOT BEING
ABLE TO RECRUIT CASEWORKERS .
LAST TIME WE WERE AT COUNCIL ,
HSD HAD SIGNIFICANT UNDER SPEND
BECAUSE OF SHORTAGES , NATIONAL
SHORTAGES , IN CASE MANAGEMENT
WORKERS. THE FUND BALANCE HAS
ACCRUED OVER TIME. HOWEVER, WE
WILL BE USING THE FUND BALANCE
BY MERRILY FOR THE UPFRONT COST
RELATED TO THIS MOVE. ONGOING
COST SHOULD BE COVERED WITHIN
THE SCOPE OF THE GRANT ITSELF.
THANK YOU . THAT IS AN
IMPORTANT CLARIFICATION.
>> COUNCIL PRESIDENT?
>> ACCORDING TO MY VERY SIMPLE
MATH, THE SQUARE FOOTAGE TIMES
.75 IS 8687 , SO, NEXT YEAR IT
WILL GO UP THAT MUCH AND WILL
IT GO UP THAT MUCH ANNUALLY?
>> IT DOES. YES .
>> OKAY. LAST QUESTION, I
UNDERSTAND THE POINT YOU MADE,
A LOT OF PEOPLE ARE IN THE
FIELD AND NOT IN THE OFFICE .
FOR THE PEOPLE IN THE OFFICE,
IT SOUNDS LIKE THEY ARE AT
ABOUT TWO WEEKS OR TWO DAYS A
WEEK AND NOT FIVE DAYS. IF THE
POLICY WERE EVER TO CHANGE AND
THE REQUIRED IN-DAY MINIMUM
INCREASES , IS IT ANTICIPATED
YOU CAN FIT MORE PEOPLE ,
LET'S SAY IF IT GOES UP TO
FOUR DAYS WHEN YOU LOOK AT THE
ENTIRE DEPARTMENT AND INCLUDE
ONLY THE PEOPLE THERE ON SITE ?
>> WE ARE UTILIZING THE SPACE
FLEXIBLY, A MINIMUM TWO DAYS OR
MORE, NOT LESS. MOST FOLKS DO
WORK MORE THAN TWO DAYS BY
VIRTUE OF BEING IN THE FIELD
BECAUSE IT IS CASE MANAGEMENT,
THEY ARE IN HOME ASSESSMENTS,
GOING TO MEETINGS AND
ORGANIZATIONS AND DOING THE
TRAININGS. WE CAN MAKE SURE --
THESE ARE NOT THE PROPER WORDS,
BUT SHARED SPACE , WE ARE
TAKING THE FLEXIBILITY INTO
CONSIDERATION FOR THE FUTURE
STATE , KNOWING THERE ARE
UNKNOWNS. WE ARE OPERATING
UNDER FULL-TIME WORK. WE JUST
KNOW THAT, TO THE PANDEMIC , WE
CAN BE MORE FLEXIBLE. IF I AM
NOT IN OFFICE , PHYSICALLY IN
OFFICE , BUT IN MEETINGS OR IN
CHAMBERS , I CAN SHARE MY SPACE
WITH SOMEBODY ELSE. THAT IS THE
MINDSET. HOW DO WE DO THINGS
DIFFERENTLY TO MAKE SURE THAT
THE MONEY WE DO HAVE GOES BACK
INTO OUR PRIORITIES SUCH AS
MORE SERVICES OR HIRING MORE
CASE MANAGERS . THIS IS A FREE
PUBLIC SERVICE ANNOUNCEMENT
THAT WE ARE HIRING CASE
MANAGERS. WE ARE JUST BEING
MORE FLEXIBLE RATHER THAN DOING
THE OLD SCHOOL WAY OF HAVING A
DEDICATED SPACE FOR EVERY
PERSON. REGARDLESS OF WHETHER
THEY ARE THERE 40 HOURS A WEEK
WERE NOT. THEY ARE IN THE FIELD
WHICH DOES COUNT TOWARDS BEING
IN OFFICE.
>> I TRUST YOU WOULD KNOW WHAT
YOUR EMPLOYEES WANT IN TERMS OF
THAT. I DON'T WANT TO GET US
LOCKED INTO A TWO DAY PER WEEK
OR A LINE OF UNUSUAL VACANCY
RATES. I WAS THINKING ON THE
BRIGHT SIDE, HIRING EVERYBODY
WE NEED AND WE CAN BE PRESENT.
>> WE ARE NOT LOCKED IN AND WE
ARE RECRUITING HIM ABSOLUTELY.
>> 95 OF THE 103 TEAM MEMBERS
ARE CASE MEMBERS 95 PEOPLE ARE
RESPONSIBLE, IN THE FIELD. OUR
OFFICE IS OPEN FIVE DAYS PER
WEEK FOR CLIENTS TO COME IN FOR
COMMUNITY PROVIDERS TO COME IN
FOR TRAINING. FOR -- WE ARE
DOING QUARTERLY IN PERSON
MEETINGS. WE ROTATE THE TEAMS .
THEY HAVE TO COME IN AND BE
PHYSICALLY IN THE OFFICE. WE
HAVE A SCHEDULE OF ROTATION TO
MAKE SURE WE CAN KEEP THE
CONNECTION OF THE TEAMBUILDING
AND BEING IN PERSON.
>> THANK YOU.
>> ANYTHING FURTHER, COUNCIL
PRESIDENT ?
>> NO.
>> VICE CHAIR , LAST WORD?
>> THESE PEOPLE ARE OUT IN THE
FIELD BECAUSE THEY ARE
SERVICING OUR SENIORS. IT IS
ADVANTAGEOUS AND THE RIGHT
THING TO DO TO SERVICE OUR
SENIORS IN THE FIELD.
OBVIOUSLY, WHAT YOU ARE HEARING
, IF YOU SHOULD HAVE MORE DAYS
IN OFFICE PHYSICALLY , NOT IN
THE FIELD , WOULD YOU HAVE THE
ABILITY TO ACCOMMODATE FOLKS IF
THEY HAVE TO BE IN THE OFFICE?
I FULLY UNDERSTAND , THESE ARE
FOLKS WHO HAVE BEEN WORKING
THROUGH THE PANDEMIC FULL-TIME.
IT IS THEIR FULL-TIME JOB , IT
HAPPENS TO BE IN THE FIELD AND
WE APPRECIATE THAT. I WANTED TO
MAKE THAT DISTINCTION. NOT THAT
WE ARE SAYING YOU ARE NOT
WORKING FULL TIME, JUST FIELD
WORK VERSUS BEHIND A DESK IN
THE OFFICE.
>> I WOULD JUST SAY IT IS A
REQUIREMENT TO DO THE IN HOME
ASSESSMENTS. MANY FOLKS ARE
ALSO NOT HOMEBOUND BUT THAT IS
WHERE THEY ARE LOCATED. HAVING
EYES ON THE PERSON AND SEEING
THE ENVIRONMENT IS A PART OF IT
AND A REQUIREMENT OF THE WORK.
>> AND NOT MAKING FOLKS COME
IN. MEETING SENIORS WHERE THEY
ARE. THANK YOU FOR ALL THE WORK
YOU DO FOR SENIORS IN SEATTLE
AND IN THE COUNTY. THIS IS VERY
IMPORTANT WORK. BEFORE THE
PANDEMIC AND AFTER THE PANDEMIC
, AS WE HAVE SEEN THE IMPACTS
OF THE PANDEMIC ON OUR SENIORS.
I APPRECIATE THAT YOU HAVE
FOLKS GOING TO OUR SENIORS
WHERE THEY ARE AT AND
MITIGATING FOR THEIR HAVING TO
COME IN . IN MANY INSTANCES ,
THEY ARE NOT ABLE TO.
>> THANK YOU, CHAIR.
>> WELL SAID. THIS ITEM WILL BE
BACK BEFORE OUR COMMITTEE FOR A
FINAL VOTE LIKELY IN JUNE.
THANK YOU. THANK YOU , FAS.
CLERK , PLEASE READ THE SECOND
ITEM ON THE AGENDA.
>> CITY OF SEATTLE IN PDA DEBT
RESTRUCTURE FOR DISCUSSION.
>> AS WE ARE DOING SOME
TRANSITIONS HERE, FOR
PRESENTERS, OUR SECOND ITEM ON
THE AGENDA IS THE MUSEUM THAT
RESTRUCTURE LEGISLATION. WE ARE
JOINT BY INTERIM CITY FINANCE
DIRECTOR , THE DEBT MANAGEMENT
DIRECTOR, AND THE DIRECTOR OF
POLICY FOR THE MAYOR, AND , AND
AS I WAS REVIEWING THESE SLIDES
, I AM NOT SEEING THE INTEREST
RATE DIFFERENCE. WE CAN COME
BACK TO THAT. HOPEFULLY , IT
WILL BE WITHIN YOUR NOTES. I
WILL SHARE WITH YOU,
COLLEAGUES, THE APPOINTMENT
WILL BE COMING TO COMMITTEE AT
SOME POINT IN THE FUTURE. JAMIE
WORKS AS OUR COMPTROLLER , IF
YOU ARE MORE FAMILIAR WITH
FINANCE , THE FINANCE DIRECTOR
IS A LAYPERSON'S TERM , IF YOU
NEED TO UNDERSTAND WHAT SHE
DOES, OUR COMPTROLLER IN
ESSENCE. WITH THAT, I WILL TURN
IT, COUNSELED CENTRAL STAFF IS
HERE. I WILL TURN IT OVER TO
YOU AND GO DOWN THE LINE.
>> GOOD MORNING, COUNCILMEMBERS
. I AM JUST HERE IN CASE THERE
ARE PROCEDURAL QUESTIONS. OR
THINGS THAT MAY BE APPROPRIATE
FOR CENTRAL STAFF. YOUR EXPERTS
ARE ON THE EXECUTIVE SIDE.
>> I WILL TURN IT OVER TO THE
CONTENT EXPERTS AND I AM HERE
TO ANSWER ANY QUESTIONS THE
COMMITTEE MAY HAVE.
>> IT LOOKS LIKE WE ARE READY
TO GO. GOOD MORNING --
>> DIRECTOR , YOU NEED TO BRING
THE MICROPHONE MUCH CLOSER TO
YOU.
>> DID NOT WANT TO OVERPOWER
IT. GOOD MORNING , COUNCIL.
>> STILL, A LITTLE ELS UNCOMFOR
HEARING IMPAIRMENT COME IF YOU
CAN SPEAK LOUDER I WOULD
APPRECIATE THAT. READY TO ROCK
'N ROLL. I AM THE INTERIM CITY
FINANCE DIRECTOR , I AM JOINED
BY MY COLLEAGUE , KRISTY,
DIRECTOR OF DEBT MANAGEMENT FOR
THE CITY OF SEATTLE, AND DAN ,
POLICY DIRECTOR FROM THE
MAYOR'S OFFICE, AND WE WILL
TALK ABOUT LEGISLATION RELATED
TO THE MUSEUM DEVELOPMENT
AUTHORITY OF SEATTLE. WHICH IS
ONE OF THE CITY'S PUBLIC
DEVELOPMENT AUTHORITIES AND I
WOULD LIKE TO THANK PEOPLE FOR
BEING HERE AND SUPPORT TODAY.
FOR OUR AGENDA , I WILL SHARE A
BRIEF OVERVIEW OF THE CITY --
OFFICE OF CITY FINANCE, THE
CITY OFFICE BRINGING FORWARD
THIS LEGISLATION TODAY. I WILL
HAND THE PRESENTATION TO KRISTI
TO SPEAK MORE SPECIFICALLY TO
THE LEGISLATION REGARDING THE
CITY GUARANTEE OF BONDS AND
WILL CONCLUDE WITH QUESTIONS.
THE OFFICE OF CITY FINANCE IS
RESPONSIBLE FOR OVERSEEING
CITYWIDE FINANCIAL OPERATIONS
INCLUDING FINANCIAL CONTROL
FUNCTIONS SUCH AS CITYWIDE
ACCOUNTING , PAYROLL, AND
ENTERPRISE REPORTING. OFC WORKS
WITH THE CITY BUDGET OFFICE IN
ACCOMPLISHING THIS WORK . OFC
HOUSES THE DEBT MANAGEMENT
FUNCTION FOR THE CITY , A
CENTRALIZED RULE FOR ISSUING
MUNICIPAL AND REVENUE BONDS TO
SUPPORT THE GENERAL GOVERNMENT
OF THE CITY, UTILITY CAPITAL
NEEDS. IN ADDITION, OUR OFFICE
TAKES THE LEAD ON ENGAGING WITH
THE CITY'S PUBLIC DEVELOPMENT
AUTHORITIES REGARDING FINANCIAL
MATTERS. I WILL HAND IT OVER TO
KRISTI TO PRESENT ON THE
FOLLOWING SLIDES.
>> THANK YOU, JAMIE .
>> YOU NEED TO TURN ON YOUR
MICROPHONE.
>> CAN YOU HEAR ME NOW ?
>> YES, BEAUTIFUL, TAKE IT
AWAY.
>> MY NAME IS CHRISTINE AND I
AM THE CITY'S DEBT MANAGEMENT
DIRECTOR AND GLAD TO BE WITH
YOU TODAY. BEFORE SPEAKING
DIRECTLY TO THE MDA LEGISLATION
, WE WANTED TO PROVIDE CONTEXT
FOR THE CITY OF SEATTLE'S
PUBLIC DEVELOPMENT AUTHORITY.
WHICH YOU ALREADY MAY BE
FAMILIAR WITH. PDAS ARE PUBLIC
CORPORATIONS THAT ARE FORMED BY
CITIES AND TOWNS , COUNTIES TO
CARRY OUT A SPECIFIC FUNCTION
THAT IS IN THE PUBLIC INTEREST
OF THE ENTITY FORMING THE PDA.
THE CITY PDAS ARE CHARTED BY
THE CITY PURSUANT TO THE RCW AT
THE SEATTLE MUNICIPAL CODE. TO
CARRY OUT A SPECIFIC FUNCTION
THAT MAY INCLUDE PURPOSES SUCH
AS USING DEVELOPMENT -- MUSEUM
DEVELOPMENT, ECONOMIC
DEVELOPMENT , OR PUBLIC MARKET
PURPOSES A NUMBER OF THE
CITY'S PDAS ARE SHOWN ON THE
SCREEN. THE MUSEUM DEVELOPMENT
AUTHORITY OF SEATTLE WAS
CHARTERED BY THE CITY
APPROXIMATELY 40 YEARS AGO. TO
PROVIDE FOR THE MANAGEMENT AND
OPERATION OF PUBLIC ART MUSEUM
FACILITIES THROUGH AGREEMENTS
WITH THE SEATTLE ART MUSEUM, AN
INDEPENDENT , NONPROFIT ENTITY.
THESE FACILITIES INCLUDE THE
SEATTLE ART MUSEUM FACILITY ,
THE OLYMPIC SCULPTURE PARK ,
AND THE SEATTLE ASIAN ART
MUSEUM. AS A PDA OF THE CITY,
THE MDA OWNS THE DOWNTOWN
SEATTLE ART MUSEUM FACILITY AND
LEASES THAT FACILITY TO THE
SEATTLE ART MUSEUM AS A
NONPROFIT ENTITY. WE WILL LOOK
MORE SPECIFICALLY NOW AT THE
LEGISLATION THAT IS BEFORE
COUNCIL. THE LEGISLATION BEFORE
COUNCIL AUTHORIZES THE CITY'S
DIRECTOR OF FINANCE TO APPROVE
AND SIGN AN AMENDED THIRD
GUARANTEE AGREEMENT WITH THE
MDA AND SAM THIS AGREEMENT WILL
AUTHORIZE THE CITY'S GUARANTEE
OF THE MDA REFUNDING BONDS IN
2024 AND WE WILL SPEAK MORE
ABOUT THAT IN THE FOLLOWING
SLIDES . IT ALSO INCREASES THE
CITY'S FLEXIBILITY UNDER THE
AGREEMENT TO RESPOND TO
PROPOSALS THAT WOULD ADDRESS
FINANCIAL NEEDS THAT MAY ARISE
FROM THE SEATTLE ART MUSEUM AND
THE MDA SHOULD THOSE COME TO
THE CITY IN THE FUTURE.
IMPORTANTLY, THE AMENDED
AGREEMENT RETAINS THE TERMS OF
THE CURRENT AGREEMENT BETWEEN
THE CITY, MDA AND S.A.M. TO
PRESERVE THE CITY'S RIGHT TO
BE REIMBURSED IF THERE WERE
ADVANCES BY THE CITY UNDER THE
AGREEMENT. AND , IT PRESERVES
THE REQUIREMENT THAT ANY
CHANGES TO THE AGREEMENT IN THE
FUTURE WOULD BE BROUGHT BACK TO
COUNCIL FOR FUTURE
AUTHORIZATION. AND THAT WOULD
BE BY ORDINANCE.
>> BEFORE WE MOVE ON TO THE
NEXT SLIDE, COLLEAGUES , THIS
IS A CONVERSATION, FEEL FREE TO
SPEAK UP IF YOU HAVE QUESTIONS.
AS MY PRACTICE, I AM DOING
BRIEFINGS BEFORE THESE MEETINGS
AND I HAVE ASKED MOST OF MY
QUESTIONS AND I WILL HIGHLIGHT
WHAT I'M SEEING. CAN YOU
CONFIRM THAT REFUNDING IS
ANOTHER WORD TO REFINANCING ?
>> EXACTLY RIGHT . REFUNDING IS
VERY MUCH LIKE A REFINANCING
WHERE THE DEBT SERVICE IS ABLE
TO BE REDUCED . THE TERM OF THE
BONDS REMAINS THE SAME BUT
THERE IS A SAVINGS THAT OCCURS
BECAUSE THE INTEREST RATE IS
LOWER UNDER THE NEW REFINANCE
TERMS. THE EASIEST WAY TO THINK
OF IT MAY BE, REFINANCING A
HOME. YOU RETAIN THE SAME
LENGTH OF YOUR PAYMENTS BUT THE
PAYMENT IS REDUCED BECAUSE YOU
HAVE ACCOMPLISHED INTEREST-RATE
SAVINGS.
>> SOMETHING COUNCILMEMBER
KETTLE HAS BROUGHT TO ME MANY
TIMES. BRINGING IT FOR YOU, MY
FRIEND MY UNDERSTANDING THAT
THERE IS A 30 YEAR BOND WITH
TWO OPPORTUNITIES TO MAKE THESE
REFINANCING CHANGES , IN THE 30
YEAR TIME ONE OF THOSE PERIODS
WAS 10 YEARS AGO AND THE OTHER
IS TODAY, AND ANOTHER 10 YEARS
ON THE BOND?
>> CORRECT.
>> GO FOR IT. ALSO, IN SLIDE 9
, WE AS THE CITY COUNCIL STILL
RETAIN THE AUTHORITY FOR ANY
CHANGES IN THE FUTURE. WE ARE
SIMPLY REFINANCING, BUT I WILL
ASK YOU TO SPEAK ON THE REQUEST
WE HAVE RECEIVED THAT WE HAVE
NOT YET ENGAGED IN. BACK TO
YOU.
>> THANK YOU. MOVING TO THE
NEXT SLIDE. WE WANT TO LOOK AT
THE BACKGROUND AND THE CITY'S
ENGAGEMENT WITH THE MDA BONDS
THAT DATES BACK TO 2005. IN
2005, THE SEATTLE ART MUSEUM
AND MDA UNDERTOOK A SIGNIFICANT
CAPITAL DEVELOPMENT PROGRAM TO
EXPAND THE SEATTLE ART MUSEUM
AND THE OLYMPIC SCULPTURE PARK
. AT THAT TIME , MDA ISSUED $61
MILLION IN BONDS AND THE CITY
PROVIDED ITS GUARANTEE OF THOSE
BONDS UNDER THE TERMS OF A
GUARANTEE AGREEMENT. THAT
GUARANTEE AGREEMENT WAS BETWEEN
THE CITY, THE MDA, AND S.A.M.
AND AUTHORIZED BY CITY COUNCIL
IN 2005 IN GUARANTEEING THE
BONDS, THE CITY COMMITTED ITS
FULL FAITH AND CREDIT TO
REPLENISH A DEBT SERVICE
RESERVE ACCOUNT IN THE EVENT
THAT THE MDA WERE TO NEED TO
DRAW ON THAT ACCOUNT TO FULFILL
THE DEBT SERVICE OBLIGATIONS.
THE CITY'S GUARANTEE SERVES AS
A BACKSTOP TO THE DEBT SERVICE
REQUIREMENTS OVER TIME. THIS
ALSO PROVIDES ASSURANCE TO THE
INVESTORS WHO PURCHASE THE
BONDS , GIVING INVESTORS THE
INSURANCE THAT THE CITY WILL
STEP IN AND ENSURE THAT THE
PAYMENTS ARE MADE WHOLE. OUT OF
THE MATURITY OF THE BONDS IN
2031. THIS GUARANTY ALLOW THE
MDA TO ISSUE THE BONDS AT A
LOWER FINANCING COST THAN THE
MDA WOULD HAVE BEEN ABLE TO
ACHIEVE ON ITS OWN. THIS IS
SOMETHING THE CITY HAS DONE
FROM TIME TO TIME WITH VARIOUS
PDAS. THE MDA BONDS WERE
REFINANCED IN 2014 WITH THE
CITY'S GUARANTEE AND ALSO WITH
THE CITY COUNCIL APPROVAL IN
2014. NOW , IN 2014 THE MDA
BONDS ARE ELIGIBLE TO BE
REFINANCED OR REFUNDED. AT THIS
TIME , 22.8 MILLION IN
PRINCIPLE REMAINS ON THE BONDS
AND MDA WOULD LIKE TO REFUND
THE BONDS AGAIN IN 2024 FOR
ADDITIONAL DEBT SERVICE
SAVINGS. CITY COUNCIL
AUTHORIZATION BY ORDINANCE IS
AGAIN REQUIRED TO PROVIDE THE
CITY'S GUARANTEE OF THE
REFUNDING BONDS IN 2024 AND
THAT IS WHY THE LEGISLATION IS
BEFORE YOU. THE MDA BONDS WILL
MATURE IN 2031. MOVING TO THE
NEXT SLIDE, I WANTED TO TAKE A
MOMENT TO TALK ABOUT THE
MECHANISM OF THE PAYMENT OF THE
DEBT SERVICE ON THE BONDS. THIS
IS SOMETHING THAT WAS
ESTABLISHED IN THE GUARANTEE
AGREEMENT BACK IN 2005. IT IS
IMPORTANT BECAUSE IT PROVIDES
ADDITIONAL SECURITY FOR THE
CITY UNDER ITS GUARANTEE. I
WILL TAKE A MOMENT AND LOOK AT
THE FLOW OF FUNDS FOR THE DEBT
SERVICE FOR JUST A MOMENT. DEBT
SERVICE ON THE BONDS IS
APPROXIMATELY $3.9 MILLION PER
YEAR. AS DESCRIBED IN AN
EARLIER SLIDE , THAT MDA OWNS
THE DOWNTOWN SEATTLE ART MUSEUM
FACILITY AND LEASES IT TO
S.A.M. AS THE NONPROFIT
OPERATOR S.A.M. BEING THE
SEATTLE ART MUSEUM. S.A.M.
LEASES OUT THE EIGHT FLOORS OF
OFFICE SPACE ABOVE THE ART
GALLERIES AND, IN DOING SO ,
GENERATES LEASE REVENUES.
S.A.M. USES THOSE LEASE
REVENUES TO PAY THE DEBT
SERVICE ON THE MDA BONDS . IN
THIS WAY , IT IS THE LEASE
REVENUES THAT FUND THE DEBT
SERVICE AND NOT THE MUSEUM
ADMISSION FUNDS. THE MASTER
TENANT AND ALL OF THE TENANTS
OF THOSE EIGHT FLOORS ARE
REQUIRED TO PAY THOSE LEASE
AMOUNTS INTO A LOCKBOX THAT IS
HELD BY A SEPARATE FINANCIAL
INSTITUTION THAT WAS AGREED
UPON BY ALL PARTIES. ON A
MONTHLY BASIS , THE LOCKBOX
AGENT RECEIVES THOSE FUNDS AND
APPLIES THOSE LEASE REVENUES TO
PAY THE DEBT SERVICE ON THE
BONDS AND WHEN THAT HAS BEEN
FULLY ACCOMPLISHED AND THE DEBT
SERVICE HAS BEEN PAID , ALL
RESIDUAL FUNDS RETURNED BACK TO
THE SEATTLE ART MUSEUM FOR USE
FOR ITS OPERATIONS. THAT
ARRANGEMENT IS IMPORTANT
BECAUSE IT REDUCES THE CITY'S
RISK BECAUSE THE CITY HAS
ACCESS TO ALL OF THOSE FUNDS
THAT RESIDE IN THE LOCKBOX
UNTIL THE FULL DEBT SERVICE IS
PAID. THAT OCCURS ON A MONTHLY
BASIS. ALL PAYMENTS ARE CURRENT
AND HAVE BEEN SINCE THE
BEGINNING OF THE AGREEMENT.
>> BEFORE WE MOVE ON TO THE
NEXT SLIDE I HAVE QUESTIONS ,
COMMENTS, BACK AND FORTH
UNDERSTANDING THAT THE
GUARANTEE , OUR ROLE AS THE
GUARANTEE OR OF THESE BONDS IS
IN COMMON LANGUAGE AS IF WE
WERE COSIGNING , CORRECT?
>> EXACTLY RIGHT.
>> IN THE LOCKBOX, IF THERE ARE
ISSUES WITH THE PAYMENT, WE ARE
THE FIRST TO RECEIVE THESE
PAYMENTS OUT OF THE LOCKBOX TO
MAKE OURSELVES WHOLE AS THE
COSIGNER?
>> YES . THE CITY HAS THE
ABILITY TO CLOSE THE LOCKBOX IF
THERE WERE ANY ISSUES WITH THE
PAYMENTS. AT THAT POINT, ANY
AMOUNT WOULD ACCRUE AND COULD
BE USED TO MAKE WHOLE THE CITY.
>> WHERE I HAVE FALLEN SHORT TO
GET BETTER INTEREST RATES FOR
THE GENERAL FUND, THESE FUNDS
WILL NOT NECESSARILY -- THE
SAVINGS DON'T NECESSARILY COME
BACK TO THE CITY BECAUSE THE
OVERALL BOND IS BEING PAID BY
THE MDA , AND THE SAVINGS TO
HELP OUR DOWNTOWN VIBRANCY AND
ACTIVATION BY ALLOWING THE
S.A.M. , SEATTLE ART MUSEUM, TO
HAVE INCREASED REVENUE AS THEY
ARE STILL RECOVERING FROM THE
PANDEMIC THAT THEY DID NOT
RECEIVE THE FEDERAL FUNDS TO BE
MADE WHOLE WHILE THEY CANNOT
HAVE VISITORS.
>> ABSOLUTELY CORRECT . THE
SAVINGS FROM THIS FUNDING WILL
FLOW DIRECTLY BACK TO THE
SEATTLE ART MUSEUM AND BENEFIT
THE SEATTLE ART MUSEUM FOR ITS
OPERATIONS. THE CITY DOES
UNDERTAKE REFUNDING EACH YEAR
FOR ITS OTHER BONDS WHICH
INCLUDE REVENUE BONDS FOR THE
UTILITIES AND FOR THE GENERAL
OBLIGATION BONDS AS MARKET
CONDITIONS ALLOW. WE ARE
UNDERTAKING THAT EVALUATION FOR
THE GENERAL OBLIGATION BONDS AS
WELL , BUT THAT IS SEPARATE
FROM THIS MDA.
>> THANK YOU.
>> WE WILL MOVE TO THE NEXT
SLIDE. JUST WANTED TO
UNDERSCORE, REFUNDING THE MDA
BONDS BENEFITS THE MDA, THE
SEATTLE ART MUSEUM , AND THE
CITY. REFUNDING BENEFITS S.A.M.
AND THAT MDA BECAUSE SAVINGS
FROM THE REFUNDING WILL FLOW
BACK TO THE SEATTLE ART MUSEUM
AS WE DISCUSSED. LOWER DEBT
SERVICE MEANS THAT THE SEATTLE
ART MUSEUM WILL HAVE ADDITIONAL
FUNDS READ UP FOR MUSEUM
OPERATIONS . LOWER DEBT SERVICE
ALSO BENEFITS THE CITY BECAUSE
IT REDUCES THE CITY'S EXPOSURE
UNDER THE GUARANTEE OF THE
BONDS THAT CURRENTLY EXIST AND
WOULD CONTINUE IF THE
LEGISLATION IS PASSED. IN TERMS
OF TIMING AND NEXT STEPS , THE
CITY'S GUARANTEE OF THE MDA
BONDS IN 2024 WAS REVIEWED BY
THE CITY'S DEBT MANAGEMENT AND
POLICY ADVISORY COMMITTEE IN
MARCH AND FOUND TO BE
CONSISTENT WITH THE CITY'S
DEBT POLICIES AND COUNCIL
AUTHORIZATION BY ORDINANCE IS
NEEDED TO PROVIDE THE GUARANTEE
UNDER THE REFUNDING IN 2024.
AND, THE REFUNDING OF THESE
BONDS IS CONSIDERED TO BE MOST
ADVANTAGEOUS IN 2024 BECAUSE IT
WOULD MAXIMIZE THE SAVINGS
UNDER THE REFUNDING . THIS
COMES BACK TO ONE OF THE
QUESTIONS THAT COUNCIL CHAIR
STRAUSS HAD IN BEGINNING THIS
DISCUSSION, WE ARE WATCHING ,
IN TERMS OF ABIDING WHAT THE
SAVINGS MAY BE, WE ARE IN A
SOMEWHAT VOLATILE INTEREST RATE
ENVIRONMENT AND WE HAVE BEEN
FOR MUNICIPAL BONDS COMING OUT
OF COVID. WE EXPECT THERE WOULD
BE MATERIAL SAVINGS FROM THE
REFUNDING. THE INTEREST RATE IS
SUBJECT TO CHANGE BETWEEN NOW
AND WHEN WE ANTICIPATE THE
REFUNDING WOULD OCCUR. IN THE
MIDDLE OF THE SUMMER. BUT WE
ANTICIPATE MATERIAL SAVINGS
SOMEWHERE IN THE RANGE OF
250,000 TO 500,000, A REFUNDING
MANAGED BY THE MDA DIRECTLY ,
IN TERMS OF OUR EVALUATION OF
THE SAVINGS, WE BELIEVE THERE
ARE MATERIAL SAVINGS THROUGH
THE REFUNDING. I WOULD BE HAPPY
TO PROVIDE ADDITIONAL
INFORMATION ON THE INTEREST
RATES AND WHERE WE THINK THAT
MIGHT GO. AT THIS TIME,
INTEREST RATES ARE STILL MOVING
IN THE MARKET.
>> THOSE ARE ANNUAL SAVINGS
THAT WILL ACCRUE TO EFFECTIVELY
TO THE MUSEUM SO THAT THEY HAVE
THE ABILITY TO REPURPOSE THOSE
FUNDS FOR OTHER GOOD PURPOSES?
>> EXACTLY RIGHT. FINALLY , IF
LEGISLATION IS APPROVED BY
COUNCIL, THE DEBT MANAGEMENT
TEAM WILL WORK CLOSELY WITH THE
MDA TO ACCOMPLISH THE REFUNDING
AND WE EXPECT THAT TRANSACTION
WOULD OCCUR IN THE MIDDLE OF
THE SUMMER. FINALLY, IN SUMMARY
, THE LEGISLATION BEFORE
COUNCIL PRESENTS THE QUESTION
DOES THE CITY COUNCIL
AUTHORIZED THE CITY'S
GUARANTEE OF THE MDA REFUNDING
BONDS TO BE ISSUED IN 2024? IF
THE LEGISLATION IS APPROVED,
THE REFUNDING WOULD PROCEED .
THE AMOUNT OF THE DEBT SERVICE
WOULD BE REDUCED AND THE
CITY'S EXPOSURE WOULD BE
REDUCED ALSO. ANY FUTURE
CHANGES TO THE UNDERLYING
SECURITY AGREEMENTS WOULD
REQUIRE SEPARATE LEGISLATION
AND BE BROUGHT BACK TO COUNCIL
IN THE FUTURE. IF THE
LEGISLATION IS NOT APPROVED,
THE REFUNDING WOULD NOT OCCUR
AND THE DEBT SERVICE ON THE MDA
BONDS WOULD NOT BE REDUCED ,
AND THE CITY'S EXPOSURE UNDER
THE GUARANTEE WOULD ALSO NOT BE
REDUCED. THE CURRENT AGREEMENT
WOULD REMAIN IN PLACE WITH THE
CITY'S GUARANTEE ONGOING AND
WOULD CONTINUE UP TO 2031 UNDER
THE 2014 BONDS. WITH THAT, I
WILL PAUSE AND ASK IF THERE ARE
ANY QUESTIONS FROM THE
COMMITTEE.
>> IF YOU WOULD, SHARE WITH US,
COLLEAGUES, I CHAIR A LOT OF
MEETINGS AND I ATTEND A LOT OF
MEETINGS AS REFINANCE CHAIR,
YOU MAY NOT BE AWARE OF. I SIT
ON DEBT MANAGEMENT ADVISORY
COUNCIL AS WELL. SO,
OFTENTIMES, THIS ROLE HAS A LOT
MORE MEETINGS THAN YOUR OWN
COUNCIL MEETINGS. I HAVE
ALREADY BEEN BRIEFED , COULD
YOU SHARE WITH US SOME OF THE
OTHER REQUEST THAT WERE MADE OF
US THAT WE DID NOT MOVE
FORWARD?
>> THAT MUSEUM DEVELOPMENT
AUTHORITY , THIS IS A WIN-WIN
FOR THE CITY AND THE MUSEUM
DEVELOPMENT AUTHORITY. IN THE
SHORT TERM AND FOR THE DURATION
OF THE BONDS. WE EXPECT A HALF
MILLION DOLLARS OF SAVINGS FROM
JUST THE REFINANCING , WITH NO
CHANGES TO THE FINANCIAL TERMS,
THE MUSEUM AUTHORITY HAS ASKED
US TO CONSIDER POTENTIAL
CHANGES TO THE COLLATERAL THAT
THEY PUT UP FOR -- TO BACK THE
CITY'S GUARANTEE AND PROTECT
US AGAINST ANY POTENTIAL THEY
MAY NOT THEORETICALLY BE ABLE
TO PAY DEBT SERVICE AND WE
WOULD STEP IN WITH THE
GUARANTEE. WE HAVE AGREED TO
CONSIDER THOSE PROPOSALS AND
HAVE SOME IDEAS OURSELVES IN
WAYS THINGS MAY CHANGE. BUT
THAT WILL TAKE LONGER TO SORT
OUT THAT WE WERE ABLE TO DEVOTE
TIMEWISE AND KEEP ON TRACK THE
SHORT TERM UP TO A HALF MILLION
DOLLARS WORTH OF SAVINGS THAT
WOULD BRING FORWARD TODAY. STEP
ONE, THE PROPOSAL BEFORE THE
COMMITTEE, STEP TWO, CONTINUE
ENGAGING WITH THE MUSEUM
DEVELOPMENT AUTHORITY ON
POTENTIAL FINANCIAL
ARRANGEMENTS , AS YOU HEARD, BE
COMING BACK TO YOU, IF WE REACH
AGREEMENT WITH MUSEUM
DEVELOPMENT AUTHORITY, AND WITH
FUTURE AGREEMENTS.
>> TO SUMMARIZE, WE SPLIT THE
PROCESS OUT SO WE CAN INCREASE
THE SAVINGS FASTER . WE HAVE
AGREED TO A CONVERSATION THAT
WE HAVE NOT AGREED TO MAKE
OUTCOMES ?
>> THAT IS CORRECT.
>> COLLEAGUES, ANY QUESTIONS ?
COUNCILMEMBER KETTLE?
>> THANK YOU FOR COMING. OUR
FINANCE COMMITTEE MEETING AS
GONE FROM A HOUSTON COMMITTEE
SERVICES TO A SUSTAINABILITY ,
CITY LIGHT, AND ARTS AND
CULTURE COMMITTEE MEETING. THE
MDA IS STRAIGHTFORWARD , ALL
THE POINTS YOU MADE.
ADMINISTRATOR, YOUR POINTS , I
UNDERSTAND, GOING TO THE ARTS
AND CULTURE PIECE. THERE ARE
BIGGER PICTURE -- BIGGER
PICTURE ISSUES. I WAS AT THE
S.A.M. , THERE IS A LOT OF
CHALLENGES GENERALLY. WITH THAT
MDA IN THIS BRIEFING . THE MDA
IS PART OF THE SAME MARKET. WE
SEE THOSE CHALLENGES IN THAT
MARKET. OFFICE LEASING AND THE
LIKE. A LITTLE BIT OF A PUBLIC
SAFETY COMMITTEE MEETING
BECAUSE PUBLIC SAFETY DRIVES
WHAT IS HAPPENING IN THE
MARKET. IN MY EXPERIENCE , IN
WORKING THROUGH THE ISSUES,
ARTS AND CULTURE IS VERY BIG
INDUSTRY 7 . I HAVE BEEN AT THE
SEATTLE CENTER AND DIFFERENT
LOCATIONS, MY QUESTION IS, THIS
MAY BE MORE FOR CHAIR STRAUSS
THEN THE TABLE, ARE THERE OTHER
AREAS THAT WE SHOULD BE LOOKING
AT AS WELL? HOW CAN WE SUPPORT?
ARE THERE MECHANISMS -- SHOULD
WE HAVE A FINANCE REVIEW OF THE
ARTS AND CULTURE COMMUNITY ?
WORKING WITH THE OTHER
COMMITTEE TO SEE WHAT ISSUES
ARE OUT THERE? BETTER TO
ADDRESS ISSUES EARLIER RATHER
THAN LATER. MAYBE WE CAN DO
THAT IN THIS AREA. THE HALL ,
WE OWN THE BUILDING , IT IS
DIFFERENT BUT THERE WERE
SIMILAR CHALLENGES. MY QUESTION
IS, WE , AS A COUNCIL, SHOULD
WE BE LOOKING AT THE HEALTH OF
THE OVERALL ARTS AND CULTURE
COMMUNITY FROM THE FINANCING
SIDE? FROM THE BUSINESS IN THE
OF OPERATIONS, TO ENSURE THE
HEALTH OF THE OVERALL SYSTEM? I
SAY THAT BECAUSE I RECOGNIZE
THERE ARE DIFFERENT BUT SIMILAR
CIRCUMSTANCES OUT THERE. WOULD
IT BE HELPFUL FOR US AS A CITY
AND TO THE ARTS AND CULTURE
COMMUNITY, THAT WE DO THIS AND
SEE, WHAT OTHER WINS ARE OUT
THERE? SOMETHING WE SHOULD
THINK ABOUT. YOU ARE ON BOTH
COMMITTEES, CHAIR STRAUSS , SO
I TURNED IT BACK TO YOU.
>> FANTASTIC. LUCKY FOR YOU
ITEM 5 ON THE AGENDA START
SPEAKING TO JUST THIS. WE DO
HAVE A FANTASTIC CITY STAFF
WORKING ON THIS . THE REASON
THIS IS BEFORE US TODAY BECAUSE
IT IS PART OF THE 30 YEAR CYCLE
PREARRANGED MOMENTS FOR
REFINANCING. YES, WE WILL GET
TO ITEM 5 VERY SHORTLY. COUNCIL
PRESIDENT? TEAM EFFORT,
EXACTLY.
>> WE SHOULD DO WHATEVER WE CAN
TO HELP S.A.M. I AM USING THE
VERNACULAR BECAUSE S.A.M. IS
NOT ONLY A GEM OF OUR DOWNTOWN
BUT A DRIVER OF ECONOMIC
ACTIVITY AND WE SHOULD DO
WHATEVER WE CAN TO HELP. THAT
IS MY IMPULSE ALSO, NOT PRIVY
TO ALL THE CONVERSATIONS THAT
HAVE BEEN MENTIONED AND I
DON'T UNDERSTAND THE NUANCES
BUT I LOVE ME A WIN-WIN
SITUATION. MY QUESTION IS
WHETHER OR NOT THE OFFICE
VACANCY RATE HAS IMPACTED THE
MUSEUM UPON HIS ABILITY TO PAY
ITS DEBT SERVICE AND A STABBING
PLAY?
>> THE LEASE AGREEMENTS IN
PLACE ARE IN PLACE UNTIL 2031
WHEN THE BONDS RETIRE. THOSE
ARE LOCKED IN WITH THE BONDS.
THE MASTER TENANT IN PLACE
MANAGES THAT RISK . THE MDA AND
S.A.M. ARE INSULATED BY THAT
PER THE TERMS OF THE LEASE
AGREEMENT . THE MASTER TENANT
AND THE SUBTENANT.
>> I WAS REFERRING TO THE EIGHT
FLOORS ABOVE THE MUSEUM THAT IS
A SOURCE OF REVENUE, I AM
ASSUMING THOSE EIGHT FLOORS ARE
EMPTY AT ABOUT THE SAME RATE AS
ALL THE OTHER BUILDINGS
DOWNTOWN?
>> EXACTLY RIGHT. THERE MAY BE
VACANCIES FROM TIME TO TIME AND
THERE ARE VACANCIES NOW ,
HOWEVER, THAT RISK FLOWS TO THE
MASTER TENANT IN THAT AGREEMENT
WITH S.A.M. THAT INSURES THAT
THE MASTER TENANT WILL MAKE
THOSE LEASE AGREEMENT PAYMENTS
INTO THAT LOCKBOX EVEN IF THERE
VACANCIES IN THE EIGHT FLOORS.
IT WAS STRUCTURED SO THAT THE
LEASE AGREEMENT WITH THE MASTER
TENANT EXTENDING TO 2031 TO
MATCH THE TERM OF THE BONDS
PROVIDES THAT PROTECTION FROM
THE FLOWS AND CHANGES OF
VACANCY DOWNTOWN.
>> THANK YOU.
>> THAT WAS A REALLY GOOD
QUESTION, COUNCIL PRESIDENT AND
TELL ME IF I HAVE THIS WRONG,
S.A.M. LEASES TO A MASTER
TENANT , WHICH HAS A LONG-TERM
LEASE FOR ALL OF THE FLOORS,
AND THEN THEY SUBLET OR LEASE
AGAIN TO THE INDIVIDUAL OFFICES
?
>> THAT IS CORRECT.
>> FANTASTIC COLLEAGUES , ANY
OTHER QUESTIONS? WONDERFUL, WE
LOOK FORWARD TO HAVING YOU BACK
IN COMMITTEE. I BELIEVE IT WILL
BE IN THE NEXT COMMITTEE WHERE
WE WILL TAKE THESE BOTH IN THE
SELECT BUDGET COMMITTEE. I DO
FLY FOR YOU AS PRESENTERS,
BRIEF ANY COUNCILMEMBER WHO IS
NOT HERE. THANK YOU FOR YOUR
TIME AND DID WORK. FANTASTIC.
IF YOU COULD READ THE SHORT
TITLE OF THE NEXT ITEM INTO THE
AGENDA. PLEASE READ BOTH
CARRYFORWARDS AND EXCEPTIONS.
>> THREE AND FOUR, 120773 AND
120774, EXCEPTIONS FOR A
BRIEFING AND DISCUSSION.
>> THANK YOU. I STUMBLED ON THE
INTRO ABOUT THE AGENDA BECAUSE
WE WERE USING THE LONG AND
TECHNICAL LANGUAGE TO SAY
CARRYFORWARD. AN EXCEPTION. WE
HAVE TWO DIFFERENT BILLS TODAY
. THEY ARE IN A SINGLE
PRESENTATION. I WILL BE MAKING
A POINT OF, CAN WE PAUSE AT THE
END OF EXCEPTIONS ? WE WILL
PAUSE AT THE END OF
CARRYFORWARD BEFORE WE MOVE
INTO EXCEPTIONS. WITH ED AND
ALLIE, THEY ARE COMING TO THE
TABLE. I WILL PASS IT TO THEM
IF YOU HAVE AMENDMENTS TO
EITHER OF THESE BILLS HAVE BEEN
TO SETTLE STAFF BY MAY 6, IT IS
CURRENTLY MAY 1st, THAT
INCLUDES A WEEKEND. THESE ARE
PRETTY STANDARD BILLS EACH YEAR
THAT ACCOUNT FOR TYPICAL
BUDGETING PRACTICES OF NEEDING
TO SPEND MORE MONEY FOR THE
PROGRAM , WITH GOOD REASON, OR
NEEDING TO PAY ENCUMBERED FUNDS
IN A DIFFERENT YEAR THE FUNDS
WERE ENCUMBERED. I WILL PASS IT
OVER TO YOU. TAKE IT AWAY. YOU
WILL NEED TO TURN ON THE MIC.
>> MIC CHECK, ONE, TWO.
>> GOOD TO GO.
>> I AM WITH COUNCIL CENTRAL
STAFF AND WE HAVE THE COUNCIL
BILL 120774 AND 120773, THE
EXCEPTIONS AND CARRYFORWARD
LEGISLATION. I WILL START BY
PROVIDING AN OVERVIEW OF THE
CITY OF PONTIUS BUDGET
ADJUSTMENT PROCESS AND HOW THE
BUDGET GETS MODIFIED THROUGHOUT
THE STARTING WITH THE ADOPTED
BUDGET. I WILL COVER THE BULLET
ITEMS YOU SEE ON THE POWERPOINT
BEFORE WE GET INTO SPECIFIC
DETAILS AND HIGHLIGHTS OF THE
CARRYFORWARD ORDINANCE AND
EXCEPTIONS , WHICH ARE DEFINED
IN THE OVERVIEW SLIDE FOR
REFERENCE . I WILL COME BACK TO
EACH OF THESE IN THE NEXT FEW
SLIDES. BY STATE LAW , WE ARE
REQUIRED TO ADOPT A BUDGET 30
DAYS PRIOR TO THE ENSUING
FISCAL YEAR. WHICH WE DID IN
2023 AND ON NOVEMBER 21st ,
WHEN WE ADOPTED A $7.8 BILLION
BUDGET ACROSS ALL DEPARTMENTS
AND FUND SOURCES. SO, WHILE THE
BUDGET ADOPTION INCLUDES A SIX
YEAR CIP AND REFERENCES THAT
ONLY THE FIRST YEAR OF THE
CAPITAL INVESTMENTS ARE
APPROPRIATED IN THE BUDGET
ADOPTION ITSELF. MOVING INTO
OPERATING PHASE OF THE 2024
BUDGET YEAR. AUTOMATIC
CARRYFORWARD IS THE FIRST THING
THAT TAKES PLACE. THAT IS AN
ADMINISTRATIVE ADJUSTMENT ,
WHICH CARRIES FORWARD BUDGET
FOR NON-LAPSING , MOSTLY
CAPITAL APPROPRIATIONS FROM
2023 INTO 2024 IN THIS CASE.
THAT MEANS THAT MONEY DEDICATED
TO CIP AUTOMATICALLY CARRIES
FORWARD FROM 2023 UNTIL IT IS
EITHER FULLY SPENT OR REDUCED
OR AGGREGATED BY COUNCIL
ORDINANCE. ONLY CERTAIN
APPROPRIATIONS ARE ASSUMED TO
BE NON-LAPSING, MEANING THAT
AUTHORITY CARRIES FORWARD INTO
THE NEXT YEAR FOR OPERATING ,
AND THAT IS GRANTS AND SERVICE
CONTRACTS ENCUMBRANCES.
ENCUMBERING ESSENTIALLY MEANS
SETTING ASIDE MONEY FOR ALREADY
LEGALLY EXECUTED CONTRACTS
BECAUSE THE CITY DOES NOT PAY
UNTIL WE ARE INVOICED FOR THE
WORK THAT HAS ALREADY BEEN
COMPLETED. FOR EXAMPLE, A BIG
CHUNK OF THE CARRYFORWARD IS IN
THE MULTI FAMILY LENDING
PROGRAM. AND, FOR ALREADY
EXECUTED CONTRACTS, WITH
DEVELOPERS , SO THE WORK IS ON
ITS WAY BUT WE HAVE NOT BEEN
FULLY INVOICED FOR IT. THAT
SAID, --
>> BEFORE YOU MOVE ON, I HAVE
QUESTIONS. FINISH UP REAL
QUICK.
>> $1.8 BILLION OF AUTOMATIC
CARRYFORWARD ACROSS ALL FUNDS.
MOST OF THAT IS IN CAPITAL
BUDGETS.
>> WONDERFUL. WHEN YOU TALK
ABOUT ENCUMBRANCES, TAKE
ANOTHER MOMENT OR JUST -- I
WILL SAY WHAT I BELIEVE TO BE
TRUE, IF WE SIGN A CONTRACT IN
NOVEMBER, AND THE CONTRACT IS
NOT FULLY IMPLEMENTED BY THE
OUTSIDE CONTRACTOR UNTIL
JANUARY , WE ARE NOT INVOICED
UNTIL JANUARY , EVEN THOUGH WE
ENCUMBERED THE FUNDS IN
NOVEMBER? A GOOD EXAMPLE OF
WHAT WOULD BE KEPT WITHIN HERE?
>> SO, ENCUMBERING FUNDS
ESSENTIALLY IS , IN NOVEMBER IS
A LITTLE BIT TOO LATE BECAUSE
OF THE WAY OUR PROCUREMENT
PROCESS WORKS.
>> YOU CAN CHOOSE ANY MONTH,
AUGUST.
>> ESSENTIALLY, YES . WE
ENCUMBERED FUNDS TO ESSENTIALLY
SET ASIDE MONEY FOR ALREADY
EXECUTED CONTRACTS. WHEN THEY
PERFORM THE WORK, THAT
ENCUMBRANCE GOES AND BECOMES
ACTUAL SPEND MONEY. THE
ENCUMBRANCE IS REDUCED , ACTUAL
EXPENDITURES INCREASED AND IT
OFFSETS.
>> I WILL JUST NOTE, IT IS
PRETTY NORMAL FOR THIS TYPE OF
ACTIVITY BECAUSE THE BUDGET IS
ADOPTED AT THE END OF NOVEMBER
AND GOES INTO EFFECT ON
DECEMBER 1st. THERE IS OFTEN
NEW THINGS THAT THE PERMITS ARE
BEING ASKED TO DO AND IT TAKES
SOME TIME TO GET THE CONTRACTS
EXECUTED COUNCIL AND THE MAYOR
MAY HAVE PROVIDED 12 MONTHS OF
FUNDING FOR SOMETHING, BUT THE
WORK AND THE CONTRACT IS NOT
SIGNED UNTIL MARCH, APRIL ,
MAY, 12 MONTHS OF FUNDING WILL
CARRY INTO THE NEXT YEAR. IF
THOSE CONTRACTS ARE FULLY
EXECUTED, WORK IS UNDERWAY BUT
THEY HAVE A COUPLE MONTHS LEFT
OF FUNDING TO COMPLETE THE
CONTRACT. THAT WILL
AUTOMATICALLY CARRY FORWARD
INTO THE NEXT YEAR'S BUDGET.
THOSE PIECES ARE NOT LEGISLATED
BUT WE HIGHLIGHT IT FOR THE
COUNCIL FOR FULL AWARENESS OF
THE MOVING PARTS OF THE BUDGET
THROUGHOUT THE YEAR. THE FLOW
OF MONEY DOES NOT ACTUALLY MEET
A 12 MONTH BUDGET.
>> VERY HELPFUL. YOU SAY TWO
THIRDS ARE CAPITAL BUDGETS,
WHAT IS THE OTHER ONE THIRD MAX
>> OPERATING EXPENSES, BUT MOST
ARE RELATED TO CAPITAL, A
MAJORITY IN MULTI FAMILY
LENDING, AND I BELIEVE THE
OTHER BIGGEST ITEM WAS KCRJ
FUNDING THEY ARE LOOKING TO
CARRY FORWARD INTO 2024.
>> THANK YOU. TAKE IT AWAY.
>> THE NEXT PIECE , MOST
RELEVANT TO OUR CONVERSATION
TODAY, REGARDING SUPPLEMENTALS.
STATE LAW ALLOWS SUPPLEMENTALS
TO TAKE PLACE AND WE CATEGORIZE
SUPPLEMENTAL BILLS, STANDALONE
, COMPREHENSIVE , STANDALONE
ARE MORE SPECIFIC SINGLE
SUBJECT , A GOOD EXAMPLE IS THE
MOST RECENT LEGISLATION FOR THE
MUSEUM REPAIRS ON A GRANT FROM
WASHINGTON STATE DEPARTMENT OF
COMMERCE . COMPREHENSIVE
LEGISLATION IS A PROCESS BY
WHICH THEY SOLICIT FEEDBACK
FROM DEPARTMENTS AND PACKAGES
THAT AS A PACKAGE OF ITEMS FOR
CONSIDERATION AND THAT AFFECTS
MULTIPLE FUNDS AND MULTIPLE
DEPARTMENTS. WHICH IS WHAT WE
ARE TALKING ABOUT TODAY FOR
BOTH OF THEM BILLS BEFORE YOU.
>> SO, I WOULD JUST PAUSE, THIS
IS THE END OF THE BACKGROUND ON
OUR SUPPLEMENTAL BUDGETING
SECTION OF THIS PRESENTATION.
WE WILL NOW MOVE FORWARD INTO
THE CARRYFORWARD AND TAKE
ANOTHER BRIEF PAUSE BEFORE WE
MOVE INTO THE EXTENSIONS.
CORRECT ?
>> CORRECT .
>> TAKEN AWAY.
>> COUNCIL BILL 120774, THE
CARRYFORWARD LEGISLATION
REQUEST APPROVAL FOR A TOTAL OF
2024 BUDGET INCREASE OF $201.4
MILLION. FROM SEVERAL CITY
FUNDS. THIS BILL ESSENTIALLY IS
SEEKING COUNCIL APPROVAL TO
CONTINUE VARIOUS WORK THAT WAS
BUDGETED IN 2023 AND
ANTICIPATED TO CONTINUE INTO
2024. THEY JUST NEED THE
FUNDING TO BE REAPPROPRIATED
AGAIN IN ORDER TO CONTINUE THAT
WORK. I WILL HIGHLIGHT THE
DEPARTMENT'S WITH THE HIGHEST
INCREASES , PROPORTIONAL TO
THEIR ADOPTED BUDGET. IN THE
MEMO I HAVE HIGHLIGHTED SEVERAL
OTHER ITEMS WITH THE HIGH
CARRYFORWARD AMOUNTS OR ONE
THAT COUNCIL MAY BE INTERESTED
IN. THAT WAS STARTING ON PAGE
FIVE IN THE MEMO. STARTING WITH
OPC, THIS CARRYFORWARD WITH
DOUBLE THE DEPARTMENT'S
REVISED BUDGET AND MOST OF THAT
IS FOR EQUITABLE DEVELOPMENT
INITIATIVE AWARDS THAT HAVE NOT
BEEN CONTRACTED. THE
CONTRACTING PROCESS FOR THESE
LONG-TERM PROJECTS OFTEN TAKES
MULTIPLE YEARS AND THE FUNDS DO
NOT ALWAYS GET EXPENDED IN THE
SAME YEAR. FOR THE OFFICE OF
HOUSING, OF THE $72 MILLION
TOTAL INCREASE, $71.5 MILLION
IS FUN RELATED TO MULTI FAMILY
HOUSING. THESE FUNDS HAVE BEEN
AWARDED TO SPECIFIC PROJECTS
BUT HAVE NOT BEEN ENCUMBERED IN
THE CITY'S FINANCIAL SYSTEM
BECAUSE OF THE TIMING OF LOAN
CLOSINGS FOR FUNDED PROJECTS.
WE HAVE ALSO GOT A $29 MILLION
INCREASED ACROSS MULTIPLE FUNDS
AND FINANCING IN GENERAL. THE
LARGEST PART IS TO CONTINUE THE
PARTICIPATORY BUDGETING
PROGRAM. THIS REPRESENTS MOST
OF THE CARRYFORWARD REQUESTS .
DETAILS ON THE REMAINING ITEMS
ARE ITEMIZED IN THE MEMO AND IN
SOME REATTACHMENT A ATTACHED TO
THE LEGISLATION. ALL OF THE
ITEMS HAVE BEEN REVIEWED BY
CENTRAL STAFF TO MAKE SURE THAT
THEY MEET THE NATURE OF A
CARRYFORWARD.
>> FANTASTIC. I ASKED YOU A
NUMBER OF QUESTIONS DURING OUR
BRIEFINGS AND I WILL NOT TAKE
UP COMMITTEE TIME BECAUSE WE'RE
RUNNING A LITTLE BIT LATE. I
WANT TO PAUSE BEFORE WE MOVE TO
EXCEPTIONS . COLLEAGUES , ANY
QUESTIONS ON CARRYFORWARD?
COUNCILMEMBER KETTLE?
>> THANK YOU. AS CHAIR STRAUSS
MENTIONED , THE BUDGET PROCESS
IS VERY IMPORTANT AS THIS IS AN
OPPORTUNITY FOR US. GRANTS
PIECE, CHANGES ARE VERY
HELPFUL. AND, IN AN AREA , I
DON'T KNOW WHAT I DON'T KNOW,
THE CARRYFORWARD MAKES SENSE
THAT THIS BUDGETING POINT OF
VIEW, BUT, DOES THESE PIECES --
THEY MAY SEEM STANDARD FROM THE
LINE OF BUSINESS, BUT DO THEY
INDICATE THAT WE MAY HAVE A
ISSUE IN ANOTHER AREA? THE FACT
OF THE PERCENT INCREASE ON THE
EDI, DOES THAT INDICATE ANOTHER
COMMITTEE SHOULD BE LOOKING AT
IT FROM A SUBSTANTIVE POINT OF
VIEW? IS THERE AN ISSUE THAT
NEEDS TO BE ADDRESSED SO IT IS
NOT MULTI YEARS? IS THIS AN
INDICATOR OF ISSUES THAT NEED
TO BE WORKED BY OTHER
COMMITTEES, NOT SO MUCH FROM MY
BUDGETING AND FINANCE
PERSPECTIVE, BUT MAYBE FROM A
PROGRAM OPERATIONS?
>> I WILL TAKE THAT. WHETHER IT
IS AN ISSUE OR NOT IS REALLY
YOUR CALL. I ABSOLUTELY THINK
THAT , IF COUNCILMEMBERS HAVE
QUESTIONS ABOUT THE SPECIFIC
PROGRAMS AND THE FLOW OF MONEY
THROUGH THESE PROGRAMS, IT
WOULD BE APPROPRIATE TO TAKE
THAT UP IN A SUBJECT SPECIFIC
COMMITTEE. SOME OF THESE
PROGRAMS ARE SORT OF DESIGNED
TO HAVE FUNDS CARRYFORWARD FROM
YEAR TO YEAR BECAUSE OF THE
NATURE OF THE TYPES OF
PROJECTS. FOR THE EQUITABLE
DEVELOPMENT INITIATIVE AND THE
THOSE ARE DEVELOPMENT PROJECTS
THAT OFTEN TAKE SEVERAL YEARS
TO DEVELOP AND THE CITY IS
OFTEN THE FIRST FUNDER IN , AND
THEY HAVE A COMMITMENT FROM THE
CITY AND IT TAKES TIME FOR THEM
TO GET A FULL FUNDING PACKAGE
WHERE THEY CAN MOVE FORWARD
WITH THE PROJECT AND DRAW ON
THE FUNDS. IT IS A POLICY CALL
ON WHETHER OR NOT THIS COUNCIL
THINKS THAT IS ON APPROPRIATE
USE OF -- OR A GOOD PROGRAM OR
, YOU KNOW I'M NOT TRYING TO
MAKE A JUDGMENT , THERE ARE
POLICY DECISIONS WITHIN THAT ,
BUT FROM OUR PERSPECTIVE, OUR
UNDERSTANDING OF THESE
PROGRAMS, THIS IS NOT
UNEXPECTED OR UNUSUAL.
>> THANK YOU.
>> FANTASTIC. I AM NOT SEEING
ANY OTHER QUESTIONS SO IF WE
GET -- VICE CHAIR?
>> I WANT TO SAY I HAVE HAD
SIMILAR QUESTIONS AS MY
COLLEAGUE, COUNCILMEMBER
KETTLE, I REACHED OUT TO
CENTRAL STAFF TO ASK ABOUT
THESE TYPES OF CARRYFORWARD. I
DO THINK THAT THERE -- WE
SHOULD BE LOOKING AT THESE
PROGRAMS . HOUSING DEVELOPMENT
PROGRAMS DO TAKE A LONG TIME.
THERE ARE OTHER PROGRAMS WHERE
IT IS NOT CLEAR WHY IT IS
TAKING LONGER. I THINK THERE IS
OPPORTUNITY AND WE SHOULD BE
LOOKING AT THESE AND WHETHER OR
NOT THERE ARE TERM LIMITS BY
WHICH WE ALLOW A PROJECT TO RUN
BEFORE WE SAY IT IS NOT GOING
TO GET OFF THE GROUND. DO WE
CONTINUE TO CARRYFORWARD , OR
DO WE NEED TO MAKE A DECISION?
TO MY UNDERSTANDING , OF
QUESTIONS I RECENTLY ASKED ,
NOT NECESSARILY TERM LIMITS AND
THIS IS SOMETHING WE SHOULD
LOOK AT.
>> I WOULD JUST SAY , WE HAVE
BEEN LOOKING AT PATTERNS, ARE
THERE PATTERNS OF CARRYFORWARD?
THERE IS A PATTERN WITH THE
EQUITABLE DEVELOPMENT
INITIATIVE AND THE HOUSING
FUNDING . WE WERE LOOKING FOR
OTHER AREAS WHERE THERE ARE NOT
THOSE TYPES OF PROJECTS, IS IT
INDICATING THAT WE ARE OVER
BUDGETING FOR THOSE APARTMENT
AND WE CAN RIGHT SIZE THE
BUDGETS? WE NEED TO BRUSHOFF
THAT ANALYSIS . WE PIVOTED
TOWARDS THE BUDGET REVIEW
DOCUMENT AND WE WILL TURN OUR
ATTENTION BACK THERE AND A TEAM
OF THREE FISCAL ANALYST.
COUNCIL CENTRAL STAFF . WE HAVE
BEEN LOOKING AT THAT AND HAVE
SO FAR NOT -- IF WE HAVE
TAKEAWAYS OF, IT LOOKS LIKE
THIS DEPARTMENT YEAR-OVER-YEAR
IS ALWAYS CARRYFORWARD X AMOUNT
, THAT MAY BE AN INDICATION
THAT THAT DEPARTMENT COULD BE
RIGHT SIZED WITHOUT REALLY
IMPACTING PROGRAMS OR SERVICES.
THAT ANALYSIS IS HAPPENING.
>> FANTASTIC. GOOD QUESTIONS .
MOVING FORWARD TO EXCEPTIONS.
>> NOW, COUNCIL BILL 120773 ,
EXCEPTIONS . EXCEPTIONS BILLS
PROVIDE RETROACTIVE BUDGET
AUTHORITY TO THE PRIOR YEAR
POSSE IS BUDGET FOR SPENDING
THAT HAS EXCEEDED THE BUDGET.
THE TOTAL 2023 EXCEPTIONAL
QUEST IS $12.8 MILLION . OVER
12 MILLION IS FOR TWO ITEMS
THAT HAS EXCEEDED THE 2023
BUDGET APPROPRIATIONS. FIRST,
HIGH-VOLUME OF PENSION PAYOUTS
, HAS DRIVEN THE $8.3 MILLION
INDUSTRIAL INSURANCE FUND. THE
SEATTLE DEPARTMENT OF HUMAN
RESOURCES. AND , THE SECOND IS
AN ITEM, SOLID WASTE FUND
EXCEPTION REQUEST DRIVEN BY
HIGHER-THAN-EXPECTED
INFLATIONARY ADJUSTMENTS TO
SBU'S MAJOR SERVICE CONTRACTS
IS AN RELATED TAXES ON THE
SOLID WASTE LINE OF BUSINESS .
THAT ONLY REPRESENTS ABOUT 3%
OF THE TOTAL BUDGET IN THE
SOLID WASTE , SO IT IS A SMALL
AMOUNT COMPARED TO THE OVERALL
BUDGET. THAT IS THE ONLY SLIDE
I HAVE ON EXCEPTIONS. DO YOU
HAVE QUESTIONS BEFORE I
CONCLUDE WITH THE LAST SLIDE?
>> VICE CHAIR?
>> COUNCILMEMBER KETTLE?
>> GO BACK ONE SLIDE.
ANTICIPATING PATTERNS, I AM ON
THE LABOR COMMITTEE AND I'M
WELL AWARE OF THE INFLATIONARY
IMPACTS. PART OF ME IS
WONDERING, ARE THERE ANY OTHER
INFLATIONARY ADJUSTMENTS THAT
WE SHOULD BE ANTICIPATING?
BECAUSE OF THE ABNORMAL , FROM
A RECENT PAST , IN TERMS OF
INFLATION RATE , SHOULD WE
ANTICIPATE MORE EXCEPTIONS
BECAUSE OF THE HIGHER THAN
AVERAGE INFLATION ?
>> I THINK , THE EXCEPTIONS
BILL IS UNUSUAL BUT WE ARE NOT
AWARE OF ANY OTHER JURISDICTION
THAT PROCESSES SUCH A BILL. IT
IS ESSENTIALLY ASKING FOR
FORGIVENESS AFTER OUR
DEPARTMENT HAS OVERSPENT THE
BUDGET. WE HAVE BEEN WORKING
WITH THE CITY BUDGET OFFICE FOR
SEVERAL YEARS ON THIS AND HAVE
REALLY REDUCED THE SIZE OF THE
EXCEPTIONS BILL. THERE HAS BEEN
A CONCERTED EFFORT TO TRY TO
BETTER PROJECT WHAT THE YEAR
END SPENDING WILL LOOK LIKE SO
WE AVOID THESE TYPES OF
EXCEPTIONS . I DO THINK THAT ,
YOU KNOW, WE ALL GOT
COMFORTABLE IN A LOW-INFLATION
ENVIRONMENT AND I THINK WE ARE
STILL ADJUSTING TO BETTER PLAN
AND TRY TO PROJECT IN AN
ENVIRONMENT WHERE INFLATION IS
CHANGING . IT IS SOMETHING BOTH
WE AND THE CITY BUDGET OFFICE
ARE LOOKING AT TO TRY TO AVOID
THESE TYPES OF SITUATIONS IN
THE PAST , IN SOME CASES, IT
MAY MEAN THAT SOME DEPARTMENTS
NEED MORE BUFFER IN THEIR
ANNUAL BUDGET BECAUSE THINGS
COME UP AT THE END OF THE YEAR.
THIS IS THE FIRST YEAR IN MY
MEMORY THAT THERE WAS NOT AN
EXCEPTION FOR THE DEPARTMENT OF
TRANSPORTATION . THAT IS OFTEN
BECAUSE OF DECEMBER RELATED
TRANSPORTATION ISSUES LIKE A
SNOWSTORM. THAT WAS WORSE THAN
ANTICIPATED. THAT IS AN EXAMPLE
OF WORK THAT HAS BEEN DONE TO
RIGHT SIZE THOSE BUDGETS TO
AVOID EXCEPTIONS. I WOULD LOVE
A YEAR WHERE THERE WERE NO
BUDGET EXCEPTIONS AND IT WOULD
MAKE MY YEAR.
>> THAT WOULD MAKE
COUNCILMEMBER KETTLE HAPPY. A
WAY OF DEMONSTRATIN
YOU REDUCE THIS, EXCEPTIONS
HAVE BEEN VERY LONG IN THE
PAST, IT HAS BEEN REDUCED TO
THE POINT YOU CAN BRIEF THIS IN
A SHORTER TIME THAT IT TOOK ME
TO USE THE RESTROOM.
COLLEAGUES, I WILL SHARE WITH
YOU, COUNCIL LISTEN LIVE IS A
GREAT WAY TO STAY WITHIN THE
MEETINGS , I WAS LISTENING IN
REAL TIME THE ENTIRE TIME.
>> TOO MUCH INFO.
>> SORY, -- SORRY,
COUNCILMEMBER MORALES. OTHER
QUESTIONS? SEEING NONE,
AMENDMENTS ARE DUE MAY 6th.
THIS WILL BE A SLIGHT BUDGET
COMMITTEE FOR THE ENTIRE
COUNCIL ON MAY 15th. ANYTHING
ELSE?
>> I WOULD NOTE , WE DID SET AN
AMENDMENT DEADLINE , THE
AMENDED OPTIONS ARE LIMITED . I
WOULD SAY YOU DON'T HAVE MUCH
IN TERMS OF AMENDING THE
EXCEPTIONS BILL, YOU COULD
REJECT OR NOT THAT BILL. THE
MONEY HAS ALREADY BEEN SPENT.
DO WHAT YOU WILL. YOU COULD
REJECT PROPOSED CARRYFORWARDS
AND THAT FUNDING WOULD NOT MOVE
FORWARD , BUT YOU COULD NOT
REJECT IT AND PROGRAM IT TO
SOMETHING ELSE, YOU CAN REJECT
IT AND CONSIDER FUTURE USE OF
THAT MONEY IN A MIDYEAR
SUPPLEMENTAL OR THE BUDGET FOR
NEXT YEAR.
>> COUNCIL PRESIDENT?
>> CARRYING FORWARD IS MOVING
MONEY AROUND? IT IS NOT
SPENDING IT.
>> FOR EXAMPLE, YES,
ESSENTIALLY TRANSFERRING THE
BUDGET AUTHORITY FROM LAST YEAR
INTO THIS YEAR. IT WAS BUDGETED
LAST YEAR AN EXAMPLE OF THE
OFFICE OF HOUSING , FOUR
PROJECTS THAT HAVE BEEN GIVEN
AWARD LETTERS FROM THE OFFICE
OF HOUSING, A PROJECT THAT
RESPONDED TO THE ANNUAL NOTICE
OF FUNDING AVAILABILITY. THEY
HAVE A COMMITMENT FROM THE
OFFICE OF HOUSING THEY WILL BE
AWARDED FUNDS BUT ARE NOT YET
UNDER CONTRACT OR DRAWING ON
THOSE FUNDS. IF THIS FUNDING
CARRIES FORWARD , IT WILL ALLOW
THAT CONTRACTING WORK TO
CONTINUE AND EVENTUALLY THE
PROJECT WILL SPEND THOSE FUNDS.
IF YOU REJECT THE CARRYFORWARD
OF THE PROJECT OR PROJECTS
WOULD NOT RECEIVE FUNDING AND
THEY WOULD HAVE TO RETHINK HOW
THEY ARE MOVING FORWARD WITH
THE PROJECT.
>> THERE ARE CONTRACTS. WHAT
THAT PUT US IN A BREACH OF
CONTRACT SITUATION?
>> IN THESE CASES, NOT YET
OFFICIALLY UNDER CONTRACT, IT
IS SOMEWHAT OF A LONG PROCESS
AND I HAVE MORE DETAILED
INFORMATION FROM TRACY WE CAN
FORWARD TO EVERYONE. I WILL NOT
TRY TO FIND THE EMAIL BUT IT IS
NOT FULLY UNDER CONTRACT YET.
THERE IS A PROJECT. THEY HAVE
PUT A PROPOSAL INTO THE OFFICE
OF HOUSING COME AT THE OFFICE
OF HOUSING THAT IT LOOKS LIKE A
PROJECT READY TO BE FUNDED, WE
ARE GIVING YOU , LET'S SAY 10%
OF THE FUNDING NEEDS , THEY'RE
WORKING TO IDENTIFY THEIR OTHER
FUNDING SOURCES, AS THEY DO
THAT, THEY WILL GET UNDER
UNOFFICIAL CONTRACT WITH THE
CITY AND DRAW ON THOSE FUNDS IT
IS TYPICALLY ABOUT A THREE-YEAR
PROCESS. MAY NOT BE FULLY UNDER
CONTRACT, NOT FULLY ENCUMBERED
FOR ANOTHER YEAR IN SOME CASES,
IT MAY BE ANOTHER MONTH IN SOME
CASES . THE DECISION IS , NOT
YOU SPECIFICALLY , NOT ALL OF
YOU SPECIFICALLY HAVE
PREVIOUSLY APPROVED THESE FUNDS
FOR HOUSING PROJECTS. THEY HAVE
NOT MOVED FORWARD IN THE SAME
YEAR THERE WERE BUDGETED , DO
YOU WANT TO KEEP THE MONEY IN
THE PROJECT OR REJECT IT AND
USE IT FOR SOMETHING ELSE?
>> WELL SAID . VICE CHAIR?
>> THANK YOU. IN SOME CASES ,
THERE HAVE BEEN A PROCESS AND ,
THAT ENTITY HAS BEEN AWARDED.
BUT NOT CONTRACTED. IN WHICH
CASE, THERE IS A COMMITMENT
MADE FROM THE CITY , EVEN
THOUGH THERE IS NO ACTUAL
CONTRACT.
>> CORRECT.
>> WE NEED TO CONSIDER THAT IF
WE DECIDE TO MOVE THIS THROUGH
AND APPROVE IT, THERE IS
OPPORTUNITY , AS PART OF OUR
BUDGET PROCESS FOR NEXT YEAR ,
TO CONTINUE TO LOOK AT THESE
PROJECTS AND WE COULD IMPACT
WHATEVER IS BEING CONTEMPLATED
FOR THE FOLLOWING YEAR AS PART
OF THE REVIEW AND OUR
COMMITMENT TO LOOK AT THE
PROGRAMS AND PROJECTS AND
RIGHTSIZING , ET CETERA.
>> CORRECT, YOU MAY LOOK AT THE
PROJECT LIST IN THE HOPPER AND,
BASED ON THE LENGTH OF THAT
LIST , REDUCE NEXT YEAR UPON
JUST NO FUND TO FOCUS ON
GETTING THE PROJECT MOVING. FOR
SOME PROJECTS , TO BE CLEAR,
NOT RECOMMENDING NOT FINDING
AFFORDABLE HOUSING, BUT WE SEE
A LOT OF COST INCREASES FOR
THESE PROVIDERS ON THE CAPITAL
SIDE AND IN THE OPERATING SIDE.
IT WILL ABSOLUTELY BE A PART OF
OUR ONGOING CONVERSATION AS YOU
GET TO THE BUDGET.
>> I WAS ALSO CONTEMPLATING, IN
GENERAL , YES , IF WE
CARRYFORWARD , WE CAN LOOK AT
HOW LONG IT IS TAKING TO MAKE
SURE THESE ARE COVERED BEFORE
WE MAY MAKE DECISIONS ABOUT
OTHERS , OR IN GENERAL WITH ANY
PROJECTS OR PROGRAMS, WE SHOULD
LOOK AT HOW LONG THEY ARE
TAKING. I DON'T MEAN JUST
HOUSING , I MEAN IN GENERAL. WE
CAN MAKE A DETERMINATION. THANK
YOU.
>> WELL SAID IN A VERY HELPFUL
SUMMARY , VICE CHAIR , I
APPRECIATE THAT. WITH NO
FURTHER QUESTIONS ,
CARRYFORWARD AND EXCEPTIONS ,
WE WILL MOVE INTO THE
LONG-AWAITED BUDGET REVIEW. I
BELIEVE WE ARE KEEPING THE
DEPUTY DIRECTOR. I HAVE A
BINDER. CHANNELING
COUNCILMEMBER SAKA. PLEASE READ
THE SHORT TITLE OF THE FINAL
ITEM INTO THE RECORD.
>> ITEM 5, INFORMATIONAL ITEM
2019-2024 BUDGET REVIEW.
>> THANK YOU. SO, I HAVE A LOT
ON THE SCRIPT BUT I WILL
FREEWHEEL IT. COLLEAGUES , YOU
HAVE HEARD ME TALK A LOT ABOUT
THE BUDGET REFORM , REFORMING
THE PROCESS , REFORMING THE
BUDGET , TALKING A LOT ABOUT
THE DEFINITION OF AN AUDIT ,
CAREFUL REVIEW AND EXAMINATION
. WHAT WE HAVE BEFORE US IS
SOMETHING THAT HAS NEVER BEEN
DONE BY CENTRAL STAFF IN THE
LAST 25 YEARS. WE HAVE THAT ON
GOOD AUTHORITY FROM CENTRAL
STAFF. THIS IS THE NEXT STEP OF
WHAT I BELIEVE MEETS THE
DEFINITION OF AN AUDIT. THESE
244 PAGES ARE MORE THAN WE CAN
GO INTO PAGE BY PAGE AND LINE
BY LINE IN THIS COMMITTEE. THE
REASON WE ARE DAYLIGHTING IT
TODAY IN FINANCE, NATIVE
COMMUNITIES AND TRIBAL
GOVERNMENTS , RATHER THAN IN
THE SLIGHT BUDGET COMMITTEE,
BECAUSE THIS DOCUMENT WILL
REFORM OUR WORK THROUGH THE
REMAINDER OF THE YEAR. WE
DON'T NECESSARILY NEED TO GO
TO THIS DOCUMENT LINE BY LINE
IN COMMITTEE BECAUSE THE BUDGET
REVIEW IS A TEAM SPORT. EACH OF
US NEEDS TO GO ON A DEEP DIVE
INTO THE DEPARTMENTS THAT
REPORT TO OUR COMMUNITIES AS
WELL. WE WILL BE USING THIS AS
A GUIDING DOCUMENT THROUGHOUT
THIS SELECT SERIES , WHICH IS
WHAT I AM AIMING THIS NEW
SELECT BUDGET COMMITTEE PROCESS
WE ARE USING STARTING IN APRIL
AND WILL END IN AUGUST. THIS
HAS -- THE ONLY OTHER TIME WE
HAVE HAD SELECT BUDGET
COMMITTEES IN THE SUMMER WAS IN
2020 WHEN WE RESPONDED TO A
RECESSION AND FEDERAL ONE-TIME
FUNDING. WE ARE JOINED BY
CENTRAL STAFF DEPUTY DIRECTOR .
I WANT TO THANK YOU FOR ALL OF
YOUR HARD WORK. I KNOW THAT,
WHEN I INITIALLY ASKED FOR THIS
DOCUMENT, YOU WERE PRETTY
UNSURE WE COULD PERFORM. I
REALLY WANT TO CONGRATULATE YOU
AND THANK YOU FOR , NOT ONLY
PERFORMING , BUT PERFORMING SO
QUICKLY. FOR ALL OF US, THIS
DOCUMENT PROBABLY RAISES MORE
QUESTIONS THAN IT ANSWERS, AND
THAT IS GOOD. BECAUSE THIS IS A
DOCUMENT THAT WILL ALLOW US TO
LOOK AT EACH OF THE DEPARTMENTS
IN A WAY OF, ARE WE SEEING A
PATTERN? THIS ALLOWS US TO GET
INTO THAT. THIS IS NOT THE END
OF OUR AUDIT. THERE IS MORE
WORK COMING DOWN THE PIKE. WE
WILL SHARE MORE NEWS ABOUT THAT
LATER. BUT , TODAY'S
PRESENTATION IN FINANCE, NATIVE
COMMUNITIES AND TRIBAL
GOVERNMENTS , WILL BE
HIGH-LEVEL WE WILL LOOK AT THE
BUCKETS WITHIN THIS DOCUMENT. I
SINCERELY ASK THAT EACH OF US
TAKE TIME WITH CENTRAL STAFF IN
OUR OFFICES TO GO DEEP INTO
THESE REPORTS AND INTO YOUR
DEPARTMENTS. USE THIS DOCUMENT
THROUGHOUT THE SELECT SUMMER
SERIES. WITH THAT, OVER TO YOU.
>> THANK YOU, CHAIR STRAUSS ,
AND THANK YOU FOR THE KIND
WORDS. THIS WAS AN ALL HANDS ON
DECK EFFORT , THE ENTIRE
CENTRAL STAFF TEAM CONTRIBUTED
TO PRODUCING THIS DOCUMENT AND
THE FISCAL POLICY TEAM DID A
LOT OF THE WORK TO GET THE DATA
IN FRONT OF YOU. THANK YOU TO
THE ENTIRE TEAM FOR THAT WORK.
IT IS MY PRIVILEGE TO BE HERE
TODAY TO TALK TO YOU ABOUT IT.
OKAY. AS CHAIR STRAUSS
DESCRIBES HIM AND THIS WILL
FACILITATE YOUR REVIEW AND
EXAMINATION OF THE CITY'S
BUDGET. IT PROVIDES A DETAILED
REPORT ON HIS DEPARTMENT AND
DESCRIBES THE RELEVANT
PROGRAMMATIC CHANGES, FOCUSING
ON KEY DRIVERS OF GROWTH THAT
IT OCCURRED BETWEEN 2019 AND
2024. OUR GOAL IS TO HELP YOU
ALL IDENTIFY AND REFINE
PRIORITIES AND IDENTIFY WHERE
YOU WANT TO BEGIN MORE. IT
WOULD TAKE US UNTIL THE END OF
THE YEAR TO TRY TO GO LINE BY
LINE THROUGH ALL OF THIS . WE
DID PREVIEW THIS DOCUMENT A BIT
AT THE APRIL 17 SELECT BUDGET
COMMITTEE MEETING WHERE WE WERE
FOCUSING ON THE CITYWIDE
REVIEW, WHICH IS AT THE
FOREFRONT. WE WILL NOT BE
FOCUSING ON THAT TODAY. TODAY,
I WILL PROVIDE AN OVERVIEW OF
THE INFORMATION PRESENTED IN
THE DOCUMENT ON THE POLICY
GROUPINGS AND PROVIDE AN
EXAMPLE OF ONE OF THE
DEPARTMENT REVIEWS. SO , LIKE
THE EXECUTIVE'S ANNUAL BUDGET
BOOK, WE HAVE ORGANIZED THIS
DOCUMENT INTO POLICY AREAS OR
FUNCTIONAL CLUSTERS . THAT IS
REALLY TO HELP WITH , IF YOU'RE
LOOKING AT BUDGET BOOKS AND OUR
DOCUMENT , IT IS EASIER TO
COMPARE AND FLIP BETWEEN THE
TWO. IT IS THEN ORGANIZED A
DEPARTMENT AND WITHIN EACH
DEPARTMENT, WE DESCRIBE , AT
THE BUDGET SUMMARY LEVEL , WE
HAVE THE DEPARTMENT BUDGET
WHICH IS BROKEN INTO BUDGET
SUMMARIES OR BUDGET CONTROL
LEVELS THAT GIVE YOU A LAYER OF
HOW FUNDING IS PROGRAMMED. AND
THEN WE TAKE ANOTHER LOOK AT
THE BUDGET PROGRAM , NOT THE
LEVEL AT WHICH THE COUNCIL
CONTROLS BUT IT DOES PROVIDE
MORE INSIGHT INTO WHERE
DEPARTMENTS ARE INVESTING FUNDS
APPROVED BY THE COUNCIL.
>> DEPUTY DIRECTOR , BEFORE WE
MOVE ON TO MY WANT TO USE THIS
SLIDE TO HELP US NAVIGATE OUR
BUDGET PROCESS AT LARGE. WHAT
IS HELPFUL WITH THIS SLIDE,
THIS IS A READER'S DIGEST , A
GUIDE TO YOUR ENTIRE BUDGET
BOOK. I WILL REALLY HIGHLIGHT
THE ASTERIX IN GRAY THAT MAY BE
HARD TO SEE, IT SAYS THIS
DOCUMENT WAS PRODUCED BY THE
ENTIRE CENTRAL STAFF TEAM
NARRATIVES WILL VARY AND
WRITING STYLE AND THE LEVEL OF
DETAIL INFORMATION PROVIDED
WILL VARY BASED ON HOW
INDIVIDUAL ANALYST DETERMINES
WHAT BEST PRACTICES DESCRIBED
IN HIGHLIGHT KEY INFORMATION
ABOUT THE DEPARTMENT UPON HIS
BUDGET. THE REASON I HIGHLIGHT
THIS , RIGHT NOW, ALL ANALYST
ARE ASSIGNED TO SPECIFIC
COMMITTEES THEY ARE REPORTING
TO . WHEN WE GET TO BUDGET ,
MUCH LIKE ONE OF THE PREVIOUS
BILLS WE HAD HERE, WE RELY ON
EVERY SINGLE CENTRAL STAFF
ANALYST TO GET TO THE BUDGET.
THIS DOCUMENT , AND YOUR
ENGAGEMENT WITH THIS DOCUMENT,
WILL HELP ALL OF US GET READY
FOR THE FALL BUDGET PROCESS
THAT STARTS THE LAST WEEK OF
SEPTEMBER. HOPEFULLY SOONER SO
WE CAN BE OUT BY THANKSGIVING.
BY USING THIS DOCUMENT , WE
WILL GET TO KNOW THE ANALYST,
THE DEPARTMENTS COME IN A
DIFFERENT WAY THAN JUST POLICY.
I WANT TO THANK ALL CENTRAL
STAFF FOR ALL HANDS ON DECK TO
GET THIS ACCOMPLISHED . WE
WOULD NOT BE IN THIS PLACE
WITHOUT YOU. DEPUTY DIRECTOR ,
BACK TO YOU.
>> THANK YOU. THIS SLIDE
HIGHLIGHTS THE SIX POLICY AREAS
THAT THIS BOOK IS ORGANIZED
AROUND. WE WILL WALK THROUGH A
HIGH-LEVEL SUMMARY OF EACH OF
THOSE. I WILL NOT SPEND A LOT
OF TIME ON IT. CHAIR , IF I
DON'T SEE A HAND, INTERRUPT
ME.
>> I GOT YOU.
>> I AM GOING TO START WITH AN
OVERVIEW OF THE INCLUSIVE
COMMUNITIES POLICY AREA. AS THE
FIRST EXAMPLE . THIS POLICY
AREA INCLUDES NINE DEPARTMENTS
FROM WITHIN EACH POLICY GROUP,
THERE ARE A NUMBER OF
DEPARTMENTS THAT ARE RELATED IN
SOME WAYS . AS I MENTIONED IN
THE LAST COMMITTEE, THERE COULD
BE MANY WAYS OF ORGANIZING
THESE BUT THIS IS CONSISTENT
WITH HOW WE HAVE DONE THE
BUDGET BOOK FOR SEVERAL YEARS.
FOR EACH POLICY GROUP IN THE
BOOK, THERE IS A COVER PAGE
THAT ILLUSTRATES TOTAL GROWTH
IN THE DEPARTMENT BUDGET WITHIN
THIS POLICY AREA AND THE
DEPARTMENT SUMMARY FOLLOWS. I
AM GOING TO SHOW AN EXAMPLE OF
ONE OF THE DEPARTMENTS THAT IS
INCLUDED --
>> IF YOU WANT TO GO BACK, LET
ME REFRAME. WE WILL FIRST GO
THROUGH WHAT IS A READER'S
GUIDE , AND WE WILL GO TO THE
POLICY BUCKETS. THESE NEXT
THREE SLIDES ARE HELPING US TO
NAVIGATE THE DOCUMENT, THEN WE
WILL GO INTO THE DOCUMENT.
>> I JUMPED AHEAD TO QUICKLY.
THANK YOU FOR THE POSITIVE. I
WILL PROVIDE A HIGH-LEVEL
SUMMARY BEFORE I GO TO THE
DEPARTMENT EXAMPLE. THE CHART
ON THIS LIGHT IS SHOWING HOW
MUCH THE DEPARTMENT BUDGETS
HAVE GROWN IN THE FIVE YEARS.
NOT THE TOTAL BUDGET, HOW MUCH
IT HAS GROWN OR NOT IN THIS
TIME. IN THIS EXAMPLE , THE
BUDGET IN THIS POLICY AREA
OVERALL INCREASED BY 174% . THE
MAJORITY OF THE GROWTH OCCURRED
IN THREE OF THE DEPARTMENTS,
OFFICE OF HOUSING , OFFICE OF
ECONOMIC DEVELOPMENT , AND
OFFICE OF PLANNING AND
COMMUNITY DEVELOPMENT . LARGELY
DRIVEN BY THE INTRODUCTION OF
THE JUMPSTART FUND IN THE FIVE
YEARS THAT HAS INCREASED
INVESTMENTS IN WORK THOSE
DEPARTMENTS NEED. THE
SUBSEQUENT DEPARTMENT PAGES
PROVIDE MORE DETAILS ABOUT THE
INS AND OUTS OF WHAT IS GOING
ON IN THOSE DEPARTMENTS. AS
CHAIR STRAUSS DESCRIBED, I WILL
SHOW ONE DEPARTMENT AND I'M
NOT EVEN PRESENTING THE ENTIRE
DEPARTMENT SUMMARY. I WANTED TO
HIGHLIGHT HOW WE ORGANIZED THE
INFORMATION. THE ENTIRE BOOK ,
I THINK OF IT AS A FINAL ,
STARTING AT A HIGH LEVEL AND
BUILDING DOWNWARDS. IF YOU WANT
TO DIG DEEPER, YOU CAN AND I
EXPECT SOME OF YOU WILL WANT TO
GO DEEPER THAN WHAT IS PROVIDED
IN THE BOOK AND WE LOOK FORWARD
TO THOSE CONVERSATIONS. THE
OFFICE OF HOUSING BUDGET, THE
FIRST PAGE SHOWS THE OFFICE OF
HOUSING , WHAT THE DEPARTMENT
IS , INCLUDING THE ANALYST
NAME, I HIGHLIGHT THAT BECAUSE
WE ALL STAFF THE BUDGET AND
ANALYST ARE ASSIGNED TO
SPECIFIC DEPARTMENTS . IF YOU
WANT TO DIG IT ON THE OFFICE OF
HOUSING, TRACING IS YOUR GO TO
TO UNDERSTAND MORE AND YOU CAN
ENGAGE WITH THE FISCAL POLICY
TEAM BUT AT SOME POINT WILL WE
WOULD OUT OF OUR DIPS IN TERMS
OF DETAILS OF THAT
DEPARTMENT'S SPECIFIC BUDGET.
THAT INFORMATION IS FOLLOWED BY
A SUMMARY TABLE FOR EACH
DEPARTMENT THAT HIGHLIGHTS
GROWTH OVER THE PAST FIVE YEARS
AT THE BUDGET SUMMARY LEVEL. IN
THIS EXAMPLE , OVERALL , THE
DEPARTMENT BUDGET HAS GROWN BY
389% . YOU GET A BREAKDOWN OF
THE THREE MAIN AREAS OF
PROGRAMMING IN THIS DEPARTMENT
, HOMEOWNERSHIP AND
SUSTAINABILITY, LEADERSHIP AND
ADMINISTRATION , AND MULTI
FAMILY HOUSING.
>> ON THE PRESENTATION , I AM
NOT SEEING THE GRAY SHADING
PRESENTED ON SEATTLE CHANNEL.
>> THAT IS JUST SO YOU CAN
FOCUS ON WHAT I AM DESCRIBING.
IT IS MY CLUNKY WAY OF
ANIMATING IT. I KEPT THE SLIDE
NUMBER THE SAME, SLIDE 5 AND
>> COUNCILMEMBER KETTLE?
>> SHE KNOWS HER AUDIENCE. [
LAUGHTER [
>> YOU CAN WATCH THE MAGIC. BSL
SUMMARY TABLE FOLLOWED MOSTLY
BY BAR CHART THAT INITIALLY
PORTRAYS THE BUDGET SUMMARY
LEVEL BREAKDOWN, AND SHOWS IT
BROKEN DOWN BY FUND SOURCE. WE
ORGANIZED THIS FOCUSING ON THE
GENERAL FUND AND GROUP ALL
OTHER FUNDS TOGETHER. THERE ARE
ABOUT 40 FUNDS, OVER 40 FUNDS
ACROSS THE CITY . IT WOULD NOT
BE EASY TO PRESENT A CHART THAT
BROKE DOWN EVERY SINGLE ONE .
GIVEN THE FOCUS ON THE GENERAL
FUND DEFICIT , WE HAVE FOCUSED
ON THOSE , BUT THE SUMMARIES
INCLUDE EXPLANATIONS OF ALL OF
IT. IN THIS EXAMPLE , YOU CAN
SEE IN THE BAR CHART THAT OH IS
PRIMARILY FUNDED BY OTHER FUNDS
, THIS INCLUDES PRIMARILY THE
HOUSING LEVY, THE MANDATORY
HOUSING AFFORDABILITY PROGRAM,
AND OTHER FUNDS THAT CONTRIBUTE
TO THE OFFICE OF HOUSING WORK.
ONE OF THE KEY TAKEAWAYS, YOU
LOOK AT THIS, THEY ARE NOT A
GENERAL FUND THE DEPARTMENT,
THEY ARE PRIMARILY OTHER FUNDS
, THAT IS ONE TAKE AWAY YOU CAN
GET BY LOOKING AT THE CHART.
NEXT TO OR BELOW THE CHART IN
THE BUDGET REVIEW DOCUMENT, YOU
WILL SEE SOME NOTES SUMMARIZING
WHAT HAS DRIVEN THE GROWTH . IN
THIS CASE, YOU WOULD READ ABOUT
HOW THE INCREASED FUNDING HAS
REALLY BEEN DRIVEN BY THE
RENEWAL OF THE HOUSING LEVY,
AND THE JUMPSTART FUNDS , WITH
LEGENDARY ADJUSTMENTS AND THAT
SORT OF THING. IF YOU ONLY READ
THE FIRST PAGE, YOU WOULD GIVE
A SNAPSHOT OF WHAT IS BEEN
GOING ON IN GENERAL, WHAT IS
DRIVEN GROWTH , THERE IS A
TABLE THAT SHOWS THE BREAKDOWN
OF THEIR FUNDING IN TERMS OF
LABOR AND NONLABOR, AND THE
NUMBER OF FTE AND HOW THAT HAS
GROWN OVER THE FIVE YEARS. WHEN
YOU GO TO THE SECOND OR THIRD
PAGE OF THE DEPARTMENT SUMMARY,
YOU WILL FIND ANOTHER LEVEL OF
DETAIL. IT STARTS WITH
DESCRIPTION , THE NAME OF THE
BUDGET SUMMARY LEVEL, AND THE
PURPOSE STATEMENT AND IN THE
BUDGET PROCESS , WHEN THE
COUNCIL IS AUTHORIZING FUNDING
TO THE OFFICE OF HOUSING, YOU
ARE CONTROLLING, AT THE BUDGET
SUMMARY LEVEL IN THE FUND
LEVEL. ANY FUNDS APPROPRIATED
TO THIS BUDGET SUMMARY LEVEL
CAN BE USED BROADLY FOR
ANYTHING CONSISTENT WITH THIS
PURPOSE. THAT IS THE LEVEL AT
WHICH WE ARE CONTROLLING . THAT
IS FOLLOWED BY MORE DETAILED
TABLES ABOUT THE BUDGET
PROGRAM. THIS BUDGET SUMMARY
LEVEL INCLUDES THREE BUDGET
PROGRAMS , TWO PRESENTED ON THE
SCREEN. THIS HELPS YOU TO SEE
WHAT IS REALLY GOING ON. ON THE
FIRST PAGE OF THE DEPARTMENT
SUMMARY, THIS BUDGET SUMMARY
LEVEL HAS INCREASED BY 327%
SINCE 2019. AS YOU GO DEEPER
INTO THE BUDGET PROGRAM LEVEL ,
YOU WILL SEE THAT MUCH OF THE
GROWTH IS WITHIN THE
HOMEOWNERSHIP BUDGET PROGRAM.
THAT CAN HELP YOU THINK ABOUT
WHERE WE ARE DIRECTING OUR
FUNDS , ARE THE PRIORITIES
CONSISTENT WITH YOUR
PRIORITIES? THAT SORT OF THING.
IN THE BOOK ITSELF , BELOW THE
BUDGET PROGRAM TABLE, WILL BE
NOTES FOR DESCRIBING WHAT IS
GOING ON. WE PROVIDED DATA AND
A NARRATIVE TO GIVE YOU CLUES
ON WHAT WE SEE AS THE TAKEAWAYS
OF THIS INFORMATION. ANY
QUESTIONS ABOUT THAT?
>> VICE CHAIR?
>> THANK YOU. I WANT TO THANK
THE CENTRAL STAFF PROFUSELY FOR
ALL THE WORK THAT HAS GONE INTO
THIS. THIS IS GOING TO BE
SUMMARILY HELPFUL AS WE GO INTO
THE BUDGET DISCUSSIONS LATER ON
THIS YEAR. I APPRECIATE THAT
STAFF HIGHLIGHTED CERTAIN
PROGRAMS , DEPARTMENTS HAVE
MANY PROGRAMS AND PROJECTS. I
KNOW THEY CANNOT ALL BE
CONTAINED IN THIS DOCUMENT . I
VERY MUCH APPRECIATE YOU
HIGHLIGHTING THE KEY ONES OF
NOTE. I WILL ENCOURAGE MY
COLLEAGUES TO DIG DEEPER WITH
THE DEPARTMENTS UNDER THEIR
PARTICULAR COMMITTEES . IF
THERE ARE PROGRAMS YOU REALLY
CARE ABOUT , YOU CAN REACH OUT
TO BOTH CENTRAL STAFF AND THE
DEPARTMENT ON THOSE PARTICULAR
PROGRAMS. I VERY MUCH
APPRECIATE THE WORK THAT HAS
GONE ON HERE AND THE
HIGHLIGHTING OF THE KEY
PROGRAMS WILL BE REALLY
HELPFUL. BECAUSE , AS THE CHAIR
SAID EARLIER, AND I HAVE SAID
AND OF THE COUNCIL MEETINGS ,
WE DON'T HAVE THE ABILITY TO
DO AN OFFICIAL AUDIT OF THE OF
THE FULL BUDGET , SO THIS WILL
HELP AS WE REVIEW THE BUDGET
PROPOSAL LATER THIS YEAR. AS WE
MADE DIFFERENT COMMITMENTS TO
LOOK AT PROGRAMS AND PROJECTS
THROUGHOUT THE CITY , TO MAKE
SURE WE ARE PROVIDING THE
AUDITORY ACCOUNTABILITY.
>> WELL SAID. COLLEAGUES ,
ANYTHING ELSE ? BACK TO YOU .
>> THANK YOU, COUNCILMEMBER
RIVERA, SOME DEPARTMENTS ARE
NOT BROKEN DOWN INTO VERY MANY
BUDGET PROGRAMS , PARTICULARLY
IN THOSE CASES, ONE OF THE
DEPARTMENT IN YOUR COMMITTEE,
THE DEPARTMENT OF EDUCATION
EARLY LEARNING , REALLY DOES
NOT HAVE A LOT OF SPECIFIC
BUDGET PROGRAMS, OR BUDGET
CONTROL LEVELS IN THAT CASE, WE
MAY HAVE LISTED SOME EXAMPLES
AND PROVIDED LINKS ABOUT THIS
PROGRAM TO GIVE YOU CLUES ON
HOW THE LARGER BUCKET OF
FUNDING IS ALLOCATED. THANK YOU
FOR THAT SEGWAY. I WILL BRIEFLY
WALK THROUGH THE FIVE REMAINING
POLICY AREAS AND GIVE A HIGH
LEVEL OF WHAT IS GOING ON. THE
ADMINISTRATIVE POLICY AREA
INCLUDES 13 DEPARTMENT BUDGETS,
MANY ARE THE CITY'S INTERNAL
SERVICE PERMITS LIKE FINANCE
GENERAL AND INFORMATION
TECHNOLOGY. IT INCLUDES FINANCE
GENERAL, A NON-DEPARTMENTAL
BUDGET. IN THE REVIEW DOCUMENT
FOR THIS POLICY AREA, WE
PROVIDED ADDITIONAL REVIEWS
USING THREE SUBGROUPS, POLICY
AND OVERSIGHT BUT NOT
DEPARTMENTAL, AND INTERNAL
SERVICES. IT IS A BIG CATEGORY
THAT INCLUDES A LOT OF
DIFFERENT TYPES OF ACTIVITIES
AND IT CAN GET MISREPRESENTED
AS A BLOATED BUREAUCRACY , LIKE
FINANCE GENERAL IS A LARGE PART
OF THE BUDGET. THAT IS WHERE
THE FUNDS FOR THE PUBLIC
LIBRARY ARE TRANSFERRED TO
ANNUALLY AND WHERE THE TRANSFER
FROM THE JUMPSTART FUND TO THE
GENERAL FUND HAPPENS , IT IS
QUITE LARGE AND TECHNICAL . WE
PROVIDED MORE DETAILS IN THE
DOCUMENT. IN THIS POLICY AREA
OVERALL, THE BUDGETS HAVE GROWN
33%. THAT IS PRIMARILY DRIVEN
BY BASELINE AND TECHNICAL COST
INCREASES , INFLATIONARY IMPACT
AND THE LIKE. THE DEPARTMENTS
HAVE INCREASED MOST
SIGNIFICANTLY ARE FINANCE
GENERAL, NOT DEPARTMENT THAT IS
PRIMARILY DRIVEN BY THOSE FUND
TRANSFERS. AND OTHER SORT OF
TECHNICAL THINGS. IN ADDITION ,
INCREASES IN OUR INTERNAL
DEPARTMENTS , THE DEPARTMENT OF
FINANCE AND ADMINISTRATIVE
SERVICES, AND THE DEPARTMENT OF
HUMAN RESOURCES, AND I.T.
>> BEFORE YOU MOVE ON, THIS IS
AN AREA I AM TAKING A LOT
DEEPER LOOK AT , AND WE HAVE A
LOT MORE WORK TO DO TO UNPACK
THIS. THE OTHER CASCADING
SLIDES WITHIN THE BUDGET BOOK.
I HAVE A LOT OF QUESTIONS HERE.
>> THANK YOU. THE INTERNAL
SERVICES WAS AN AREA OF A LOT
OF DISCUSSION DURING THE BUDGET
PROCESS LAST YEAR AND WE ARE
CONTINUING TO TRY TO GET MORE
INFORMATION TO BETTER
UNDERSTAND WHAT IS REALLY GOING
ON AND DRIVING THOSE COSTS. I
HAD DEEP CONVERSATIONS WITH THE
COUNCIL PRESIDENT LAST YEAR AND
I EXPECT I WILL DO MORE THIS
YEAR. THE NEXT CATEGORY , THE
ARTS , CULTURE, RECREATION
POLICY AREA INCLUDES FOUR
DEPARTMENT BUDGETS, PARKS,
LIBRARIES, ARTS AND CULTURES,
AND SINCE 2019 THE BUDGET
WITHIN THIS POLICY AREA
INCREASED OVERALL BY 20% ,
AGAIN, PRIMARILY DRIVEN BY
BASELINE AND TECHNICAL COST
INCREASES AND THE TWO
DEPARTMENTS IN THIS GROUP THAT
INCREASED MOST SIGNIFICANTLY IS
PARKS AND OFFICE OF ARTS AND
CULTURE. PARKS, THIS REFLECTS
THE APPROVAL OF THE $780
MILLION, SIX-YEAR PARK DISTRICT
FUNDING PLAN APPROVED IN 2022.
DOUBLING THE ANNUAL FUNDING.
ARTS, THE MAJORITY OF THE
GROWTH FOR ONE-TIME
EXPENDITURES FROM INCREASED
ADMISSION TAX REVENUES , DATA
SUPPORTING ACTIVITIES LIKE THE
DOWNTOWN ACTIVATION PLAN,
SEATTLE CENTER PROGRAMMING,
BRIDGE FUNDING FOR INSTITUTIONS
IN PANDEMIC RECOVERY.
COUNCILMEMBER KETTLE, THERE HAS
BEEN AN EFFORT TO LOOK AT ARTS
ORGANIZATIONS AND GRAFFITI
PREVENTION STRATEGIES WHICH ARE
ONE-TIME INVESTMENTS .
ADMISSION TAX REVENUE CAN
FLUCTUATE OVER TIME AND WE'RE
TRYING TO SEE HOW THAT REVENUE
SOURCE OPERATES COMING OUT OF
THE PANDEMIC. THEY DID TAKE A
HIT DURING THE PANDEMIC WHEN A
LOT OF VENUES WERE CLOSED. THE
EDUCATION AND HUMAN SERVICES
POLICY AREA INCLUDES JUST TWO
PARTS, HUMAN SERVICES AND THE
DEPARTMENT OF EDUCATION. AND
EARLY LEARNING. SINCE 2019 ,
OVERALL , THE BUDGET HAS
INCREASED BY 65% PRINT A LOT OF
THIS WAS DRIVEN BY CHANGES IN
THE HUMAN SERVICES DEPARTMENT.
THE COST TO HUMAN SERVICE
CONTRACTS TIED TO INFLATIONARY
ADJUSTMENTS , THE EXPANSIONS OF
INVESTMENTS IN HOMELESS
RESPONSE SERVICES , AND
INVESTMENTS IN FOOD AND
NUTRITION PROGRAMS, YOUTH
DEVELOPMENT , AND INCREASED
GRANT FUNDING FOR THE AGING AND
DISABILITY SECTION YOU HEARD
ABOUT EARLIER TODAY. THE GROWTH
IS PRIMARILY DRIVEN IN DEAL BY
FUNDING AND PROGRAMMING FROM
THE 2019 FAMILIES EDUCATION
PRESCHOOL AND PROMISE LEVY .
AND THE ADDITION OF FUNDING
FROM THE JUMPSTART FOR
SCHOOL-BASED MENTAL HEALTH
SERVICES WHICH IS A NEW
INVESTMENT OVER THE LAST COUPLE
OF YEARS WITH A SIGNIFICANT
INCREASE IN THIS YEAR'S BUDGET
OF $20 MILLION ON THE JUMPSTART
FUND . THE PUBLIC SAFETY POLICY
AREA INCLUDES 10 DEPARTMENT
BUDGETS , IT IS A LITTLE BIT ,
IT INCLUDES THE POLICE ,
RELIEF, PENSION FUNDS, NOT
REALLY A SEPARATE DEPARTMENT
BUT PART OF THE PUBLIC SAFETY
PORTFOLIO. SINCE 2019 , THE
BUDGET WITHIN THIS POLICY AREA
OVERALL INCREASED BY 16%,
PRIMARILY DRIVEN BY
INFLATIONARY ADJUSTMENTS. IT
INCLUDES A LOT OF MOVING THINGS
AROUND, THE CREATION OF THE
CARE DEPARTMENT AND OFFICE OF
EMERGENCY MANAGEMENT AND I WILL
JUST FLAG THAT, IT APPEARS THE
SEATTLE POLICE DEPARTMENT
BUDGET WAS REDUCED, THAT IS A
REFLECTION OF SERVICE,
FUNCTIONS BEING TRANSFERRED OUT
OF THE DEPARTMENT TO OTHER NEW
DEPARTMENTS LIKE CARE AND THE
OFFICE OF EMERGENCY MANAGEMENT.
THERE ARE DETAILS IN THE
DOCUMENT ABOUT THAT. OUR FINAL
POLICY GROUP IS THE UTILITIES,
TRANSPORTATION , AND
ENVIRONMENT POLICY AREA. THIS
INCLUDES FOUR DEPARTMENTS ,
INCLUDING THE UTILITIES AND THE
DEPARTMENT OF TRANSPORTATION IN
OUR BIG CAPITAL DEPARTMENTS , TN
THIS POLICY AREA INCREASED
OVERALL BY 17%. THE MOST
SIGNIFICANT GROWTH IS IN THE
OFFICE OF SUSTAINABILITY AND
ENVIRONMENT, THIS IS THE FOURTH
DEPARTMENT THAT SAW A
SIGNIFICANT INCREASE IN THEIR
BUDGET FROM THE INTRODUCTION OF
THE JUMPSTART FUNDS . IN THIS
CASE, INVESTMENTS IN THE GREEN
NEW DEAL. THERE ARE MANY MORE
DETAILS IN THE 200+ PAGE
DOCUMENT AND WE INVITE YOU TO
CONTINUE TO DIG IN AND CONSIDER
AREAS WHERE YOU WANT TO LEARN
MORE. PARTICULARLY IN THE
CONTEXT OF CONSTRAINED
RESOURCES . WE ARE HOPING IT
HELPS YOU THINK THROUGH
PRIORITIES AS WE MOVE INTO THE
BUDGET DISCUSSIONS LATER THIS
YEAR. THANK YOU.
>> THANK YOU. COLLEAGUES ,
THANK YOU FOR OBSERVING
QUESTIONS. WE ALL COULD BE UP
HERE FOR HOURS. TWO MINUTES
LEFT, I WILL SHARE HIGH LEVEL,
THIS COMMITTEE, THROUGH THE
DEMONSTRATIONS OF THE LEASE
THROUGH THE MDA BONDS , THROUGH
THIS WORK , THIS COMMITTEE IS
THE BACKBONE TO ALL OF HER
POLICY COMMITTEES TO DO THAT
WORK, AND OUR NEED OF HELP FOR
POLICY COMMITTEES IN THIS
COMMITTEE TO TAKE A DEEP DIVE
INTO EACH DEPARTMENT. MUCH LIKE
YOUR POLICY CANNOT WORK WITHOUT
A BUDGET, OUR BUDGET AND OUR
WORK CANNOT HAPPEN WITHOUT THE
STAFF , CENTRAL STAFF AND OUR
CITY WORKERS . I WANT TO MAKE
HIGH-LEVEL REVIEWS ABOUT THIS
BUDGET . IN A TYPICAL YEAR , WE
ONLY REVIEW OUR BUDGET
INCREMENTALLY. YEAR-OVER-YEAR.
THIS BOOK BEFORE US IS OUR FIVE
YEAR LOOK BACK. THIS BUILDS
UPON OUR APRIL SELECT COMMITTEE
THAT TOOK A LOOK BACK TO 2013.
WE FOCUSED IN ON THE LAST FIVE
YEARS FOR THIS BUDGET BOOK IF
WE FOCUSED ON THE LAST 10
YEARS, IT WOULD HAVE BEEN -- IF
FIVE YEARS IS 244 PAGES, I WILL
NOT GUESS HOW LONG IT WILL BE.
WHAT WAS PRESENTED IN THE APRIL
COMMITTEE AND CONTAINED WITHIN
THIS BOOK, I WANT TO CALL TO
THE TENURE LOOK BACK , BUT
POLICY CHANGES , BASELINE
GROWTH , AND THAT IS SINCE 2019
AS WELL. THIS BOOK WILL ACT AS
A GUIDE TO THE SELECT SUMMER
SERIES AND OUR FALL BUDGET
PROCESS. I KNOW WE HAVE A LOT
MORE QUESTIONS AND I THANK YOU
FOR YOUR HARD WORK. COUNCIL
PRESIDENT NELSON AND
COUNCILMEMBER KETTLE?
>> THANK YOU FOR THIS
PRESENTATION. MANY NEW
COUNCILMEMBERS , BECAUSE THEY
WERE FACING A $230 MILLION
OPERATING DEFICIT, ROUNDED FOR
A CONVENIENCE, MANY WANTED AN
AUDIT OR SOME SORT OF WAY OF
UNDERSTANDING HOW WE GOT HERE.
AS THOSE CONVERSATIONS WERE
REPORTED, I SENSED MAYBE I
ROLLING BETWEEN THE LINES. THAT
WILL BE DIFFICULT BECAUSE THIS
IS TOO COMPLICATED AND THE
BODYWORK WOULD BE TOO
EXPENSIVE. RESIGNATION THAT THE
COMPLEXITY WAS JUST NOT
UNDERSTANDABLE OR DIFFICULT TO
DOCUMENT. YOU HAVE DONE IT. I
DID NOT KNOW YOU EMBARKED ON
THIS WORK UNTIL THE BIG REVEAL
OF THE SECRET TOOL THAT WE CAN
USE GOING FORWARD. WE NEED
THIS. KUDOS TO YOU, FOR DOING
THIS FOR THE FIRST TIME EVER.
SINCE THE THREE YEARS I HAVE
BEEN ON BOARD, OR TWO AND
CHANGE, NOT HAVING A BASELINE
EVERY YEAR FOR THE PAST FEW
YEARS TO UNDERSTAND PERCENT
INCREASES FROM YEAR TO YEAR ,
EXCEPT FOR HIGHLIGHTED
PROGRAMS, THAT ARE GETTING AN
INCREASE OR DECREASE , THAT HAS
BEEN DIFFICULT BUT THIS GIVES
US MORE INFORMATION TO MAKE
DECISIONS IN OUR OVERSIGHT
CAPACITY. THANK YOU ALL FOR
PUSHING THE NEEDLE, COLLEAGUES.
THANK YOU VERY MUCH FOR GIVING
US THIS.
>> THANK YOU. I APPRECIATE THE
KUDOS, IT FEELS GOOD AFTER
PRESENTING THE DOCUMENT.
>> CONGRESSMAN KETTLE?
>> THANK YOU FOR THIS DOCUMENT.
I LOVE IT. THIS IS ABOUT GOOD
GOVERNANCE AND ALLOWING US TO
DO DUE DILIGENCE, THE ENTIRE
BUILDING, NOT JUST THE COUNCIL
, THE COMMITTEE , OR THE
EXECUTIVE DEPARTMENT COME ALL
OF US . DOING DUE DILIGENCE AND
ALLOWING US TO DO GOOD
GOVERNANCE. THIS IS A GREAT WAY
TO START THE PROCESS. THANK
YOU.
>> THANK YOU.
>> ANY FURTHER QUESTIONS ? I
KNOW WE HAVE SO MANY, WE ARE
TWO MINUTES OVER COMMITTEE
TIME. THE AMOUNT OF TIME WE
SPENT ON THE LEASE, I DID NOT
THINK WE WOULD GET HERE ON TIME
AND COMPLEMENTS TO EACH OF YOU,
COLLEAGUES , FOR HOLDING
QUESTIONS BECAUSE I KNOW YOU
ARE MEETING ABOUT THIS DOCUMENT
MULTIPLE TIMES OVER. I JUST
CLOSE MY SCRIPT AND I WILL GO
OFF OF MEMORY TO SAY THIS
CONCLUDES THE MAY 1st, 2024
MEETING OF THE FINANCE, NATIVE
COMMUNITIES AND TRIBAL
GOVERNMENTS COMMITTEE, THE NEXT
MEETING IS THE SELECT BUDGET
COMMITTEE ON MAY 15th.
COLLEAGUES, WE ARE ADJOURNED.