SOMETIMES FORGET IS THAT YOU
NEED TO GET THE MICROPHONE VERY
CLOSE TO YOUR MOUTH. JUST
REMEMBER IF YOU'RE STANDING,
THE MICROPHONES ARE ADJUSTABLE.
YOU ARE UP FIRST. I WILL CALL
OUT THE NAMES . ANY OF THESE
THREE MICROPHONES, I SUGGEST
THIS ONE IN THE MIDDLE.
I AM NOT GREAT AT READING
SOMETIMES.
WELCOME. GOOD MORNING. GO
MARINERS.
>> I MAY NOT USE THE TWO MINUTES
BUT WHAT I HAVE IS A SIMPLE
REQUEST. IN THESE TIMES OF
REVENUE NOT WRITING AS FAST AS
COST, IT MIGHT NOT BE A BAD IDEA
TO DO WITH THE STATE
PERIODICALLY DID, PUT OUT A LIST
OF PEOPLE WHO ARE NOT PAYING ALL
OF THE EXEMPTIONS YOU HAVE MADE.
SO WE CAN TAKE A LOOK, AND
SOMETIMES DECIDE WHETHER THESE
REALLY BELONG ON THAT LIST OR
NOT. IS IT REALLY WORTH IT IN
THE TIMES OF CRISIS? THE OTHER
THING I WOULD SUGGEST IS THAT
THE COUNCIL THINK ABOUT TRYING
TO BACK INTO THE CITY. WE HAVE
NOT SEEN THE CITY COUNCIL
SERIOUSLY ATTACHED TO THE
DEPARTMENTS WHEN THE COMMITTEES
WERE PARALLEL TO THE CITY
DEPARTMENTS. AND YOU HAD AT
LEAST ONE PERSON, THE CHAIRMAN,
WHO KNEW IT VERY, VERY WELL ON
YOUR BUDGET COMMITTEE, AND
GENERALLY A COUPLE OTHERS ON THE
COMMITTEE WHO KNEW IT PRETTY
DARN WELL. RIGHT NOW, THE CITY
COUNCIL HAS NOT BEEN AS TIGHT
INTO REALLY WHAT THE CITY IS
DOING.
>> THANK YOU. UP NEXT.
>> GOOD MORNING, COUNCIL
MEMBERS. GOOD TO SEE YOU. I WORK
AT THE LOW INCOME HOUSING
INSTITUTE. I'M HERE TO EXPRESS
STRONG SUPPORT FOR THE PROPOSED
11.4 MILLION IN RENTAL
ASSISTANCE AND REQUEST 10
MILLION ADDITIONAL DOLLARS BE
ALLOCATED TO THE OFFICE OF
HOUSING PORTFOLIO TO SUPPORT
NONPROFIT AFFORDABLE HOUSING
PROVIDERS. MY BELIEF THAT
HOUSING IS A HUMAN RIGHT GUYS MY
WORK AT LEHIGH. AS AN ADVOCATE,
OUR CLIENTS NEED HELP
MAINTAINING THEIR HOUSING. AS
MUCH AS SEATTLE NEEDS MORE
AFFORDABLE HOUSING, IT IS
EXISTING AFFORDABLE HOUSING
SYSTEM IS ALSO IN NEED OF
SUPPORT IS REST UNTIL ASSISTANCE
A LITTLE STABILIZE HOUSEHOLD
BEFORE THEY FALLEN TO
HOMELESSNESS, AND ENSURE
PROVIDERS LIKE LEHIGH COULD
CONTINUE TO OPERATE BUILDINGS
THAT KEEP PEOPLE SAFELY HOUSED.
FURTHER, EVERY DOLLAR SPENT ON
RENTAL ASSISTANCE PREVENTS
INCREASED NEED FOR EMERGENCY
SHELTERS, HEALTHCARE AND CRISIS
SERVICES. THIS IS AN IMPORTANT
INVESTMENT IN HOUSING STABILITY
FOR THE CITY OF SEATTLE,
ESPECIALLY GIVEN THE MANY
UNCERTAINTIES IN FEDERAL FUNDING
RIGHT NOW. I ASK THAT YOU PLEASE
ALLOCATE 21.4 MILLION TOTAL TO
TENANT-BASED RENTAL ASSISTANCE.
THANK YOU SO MUCH.
>> THANK YOU. NEXT.
>> GOOD MORNING, COUNCIL
MEMBERS. I WORK AT THE LOW
INCOME HOUSING INSTITUTE. I AM
HERE TO EXPRESS STRONG SUPPORT
FOR THE PROPOSED $11 MILLION IN
RENTAL ASSISTANCE AND TO REQUEST
AN ADDITIONAL $10 MILLION BE
ALLOCATED TOWARDS TENANT-BASED
RENTAL ASSISTANCE FOR NONPROFIT
HOUSING PROVIDERS. THE
AFFORDABLE HOUSING SYSTEM IS
UNDER INCREDIBLE STRAIN. WE SEE
THIS EVERY DAY IN OUR WORK AND
HEAR THE STORIES OF THOSE IN OUR
COMMUNITIES STRUGGLING TO PAY
RENT. HOUSING PROVIDERS ARE
GRAPPLING WITH RISING OPERATING
COSTS WHILE TENANTS, MANY OF
WHOM ARE SENIORS , FAMILIES AND
INDIVIDUALS WITH DISABILITIES,
ARE STILL STRUGGLING TO RECOVER
FROM THE ECONOMIC AND HOUSING
SHOCKS DUE TO THE PANDEMIC. THIS
FUNDING IS A CRITICAL AND
PREVENTATIVE INVESTMENT THAT
WILL HELP STABILIZE HOUSEHOLD
BEFORE THEY FALLEN TO
HOMELESSNESS AND WILL ENSURE
PROVIDERS CAN KEEP PEOPLE
HOUSED. GIVEN THE IMPACTS OF
FEDERAL BUDGET CUTS FOR
NONPROFIT PROVIDERS, IT IS
ESPECIALLY IMPORTANT FOR THE
CITY OF SEATTLE TO PRIORITIZE
THIS FUNDING AND STAND BY ITS
COMMUNITY MEMBERS. THESE
PREVENTATIVE MEASURES WILL HELP
KEEP PEOPLE HOUSED AND REDUCE
THE NEED FOR MORE COSTLY AND
REACTIVE INTERVENTIONS IN THE
FUTURE. I URGE YOU TO PLEASE
ALLOCATE A TOTAL OF $21.4
MILLION TO TENANT-BASED RENTAL
ASSISTANCE.
>> THANK YOU. UP NEXT.
>> THANK YOU, COUNCIL MEMBERS,
FOR TAKING INTO CONSIDERATION
THE COMMUNITY NEEDS SHARED
TODAY. I AM THE COMMUNITY
ENGAGEMENT MANAGER AT LOW INCOME
HOUSING INSTITUTE . FIRST, I
WOULD LIKE TO THANK MAYOR
HARRELL IN HIS OFFICE FOR
ALLOCATING FUNDS FOR TINY HOUSE
VILLAGES IN THE 2026-2027
BUDGET. THESE TINY HOMES ARE
GOING TO LIFT THE NEEDS OF
UNHOUSED NEIGHBORS BY CREATING
SAFE SPACES THAT LEAD TO
PERMANENT HOUSING. ADDITIONALLY,
AT LEHIGH WOULD LIKE TO THANK
COUNCIL MEMBERS FOR THE $11
MILLION ALLOTTED FOR RENTAL
ASSISTANCE AS THESE FUNDS WILL
BE A GREAT HELP TO MANY WHO ARE
OVERBURDENED BY RISING EXPENSES
OF FOOD, MEDICAL BILLS AND 1
MILLION BUT OTHER BASIC
NECESSITIES. AND FORTUNATELY,
THIS FUNDING IS NOT ENOUGH TO
KEEP ALL OF THOSE PEOPLE IN THIS
POSITION FROM SLIDING INTO
HOMELESSNESS. WE HAVE A
NONPROFIT AND HAVE A DUTY TO
SPEAK UP FOR THOSE WHO FACE THE
FEAR OF BEING UNHOUSED. WE ASK
THAT YOU ADD $10 MILLION OF
RENTAL ASSISTANCE FUNDING TO
DIRECTLY SUPPORT THE OFFICE OF
HOUSING NONPROFIT, AFFORDABLE
HOUSING PORTFOLIO, THUS, KEEPING
MANY SEATTLEITES PROTECTED. WE
ASK THAT COUNCIL MEMBERS
DEDICATE 21.4 MILLION FOR
TENANT-BASED RENTAL ASSISTANCE
TO KEEP SEATTLE COMMUNITY
MEMBERS HOUSED. HOUSING IS A
HUMAN RIGHT, AND WE ASK THAT YOU
HELP US MAKE IT SO. AN AN OUNCE
OF PREVENTION IS WORTH A POUND
OF CARE. THANK YOU, COUNCIL
MEMBERS, FOR LISTENING TO OUR
REQUESTS AND THE NEEDS OF OUR
NEIGHBORS.
>> THANK YOU. UP NEXT.
>> GOOD MORNING, CITY COUNCIL. I
LIVE IN THE CENTRAL DISTRICT AND
WORK FOR THE LOW INCOME HOUSING
INSTITUTE. TO ECHO MY
COLLEAGUES' COMMENTS, I'M
EXPRESSING SUPPORT FOR THE
TRAN28 MILLION IN RENTAL
ASSISTANCE AND ASK THAT 10
MILLION MORE DOLLARS BE ADDED TO
SUPPORT NONPROFIT AFFORDABLE
HOUSING PORTFOLIOS. AFFORDABLE
HOUSING PROVIDERS ARE STRUGGLING
AND CLIENTS NEED YOUR SUPPORT.
MANY HOUSEHOLDS ARE ON THE BRINK
OF LOSING THEIR HOUSING AND 21.4
21.4 MILLION IN THE BUDGET WILL
HELP STABILIZE AT RISK
HOUSEHOLDS. ALSO, WITH FEDERAL
CUTS, MANY HOUSEHOLDS ARE FACING
INCREASED FOOD INSECURITY,
ECHOING THE NEED TO PRESERVE OUR
CURRENT FOOD AND MEAL PROGRAMS.
AS A NONPROFIT, WE HAVE A DUTY
TO ADVOCATE FOR THOSE FACING
HOMELESSNESS. PLEASE ADD AN
ADDITIONAL $10 MILLION OF RENTAL
ASSISTANCE FUNDING TO SUPPORT
AFFORDABLE HOUSING, KEEP
SEATTLEITES PROTECTED, AND
ENSURE THAT HOUSING IS A HUMAN
RIGHT.
>> THANK YOU. UP NEXT. GOOD
MORNING.
>> GOOD MORNING. I AM A MEMBER.
I'M HERE ON BEHALF OF MY
COMMUNITY. WE ARE IN A SITE
CRISIS RIGHT NOW. I GOT FIRST ON
THE LIST BECAUSE I HAVE A JOB,
FORTUNATELY, 2002. SO I HAVE TO
GET THERE NOW. MOST AMERICANS
ARE TWO PAYCHECKS AWAY FROM
BEING HOMELESS. I AM JUST ASKING
FOR YOUR HELP. THANK YOU.
>> THANK YOU, JASON. I HOPE
YOU'RE NOT LATE FOR WORK.
APPRECIATE YOU COMING DOWN HERE
TODAY AND TAKE YOUR TIME TO
SPEAK TO US.
>> HELLO. I WANT TO THANK YOU
FOR GIVING ME THE OPPORTUNITY TO
SPEAK .
>> LITTLE CLOSER TO THE
MICROPHONE.
>> THANK YOU.
>> TENT CITY THREE HAS TO MOVE
IN 10 DAYS. 10 CITY FOUR HAS TO
MOVE IN JUST FOUR WEEKS. BOTH
CAMPS HAVE NO PLACE TO GO . THAT
IS 200 MEN, WOMEN AND CHILDREN
ABOUT TO LOSE OUR ONLY HOME.
HELP US FIND SITES . WE CAN'T
AFFORD TO LOSE SHELTER. MY OWN
PERSONAL STORY. I WAS FORCED OUT
OF MY APARTMENT BECAUSE THEY
RAISE THE RENT SO MUCH FROM 2021
TO 2024. THEY MORE THAN DOUBLED
THE AMOUNT , WHICH RESULTED IN A
BACK RENT AMOUNT THAT EXCEEDED
WHAT MOST APARTMENTS WOULD DENY
ME WHEN I APPLIED. SO I WAS
LUCKY TO FIND THE SHARE WILL
TENT CITY THREE. AND NOW, I AM
FACING POSSIBLY LIVING ON THE
STREETS IF WE DON'T GET HELP
FROM YOU . THIS SCARES ME THE
MOST OUT OF ANYTHING I HAVE HAD
TO FACE . I AM SO GRATEFUL FOR
THIS SHELTER THAT HAS BEEN GIVEN
ME. PLEASE DON'T TAKE IT AWAY.
THANK YOU.
>> THANK YOU FOR COMING, STACY.
UP NEXT IS KEEGAN, FOLLOWED BY
DECEMBER, AND THEN HILLARY. I
WILL SUGGEST YOU USE THE OTHER
MICROPHONE. IT IS CLOSER.
>> 10 CITY THREE SAVED ME AND MY
PARTNERS' LIVES. WE HAD BEEN
TURNED AWAY FROM EVERY FORM OF
SHELTER WE WERE LOOKING FOR. WE
WERE CONSIDERING A DOUBLE
SUICIDE, BUT THEN WE HAPPENED TO
STOP IN FRONT OF TENT CITY
THREE. THEY TOOK US IN
IMMEDIATELY. WE RECONNECTED WITH
SO MANY FRIENDS AND MADE SO MANY
FRIENDS. I WORRY THAT A LOT OF
OTHER PEOPLE WILL END UP MAKING
THAT DECISION IF TENT CITY THREE
IS DISSOLVED.
>> THANK YOU, KEEGAN. UP NEXT IS
DECEMBER.
>> OKAY.
>> GOOD MORNING.
>> MY NAME IS DECEMBER. I WAS
PART OF A DV SITUATION. I COME
FROM THE STATE OF CALIFORNIA . I
HAVEN'T LIVED IN WASHINGTON FOR
NO MORE THAN LIKE A YEAR AND A
HALF. I PUT MY HUSBAND IN JAIL.
I HAD BEEN WITH HIM FOR SEVEN
YEARS. TENT CITY MEANS A LOT TO
ME BECAUSE IF I DIDN'T COME
HERE, ME AND MY KIDS WOULD BE
HOMELESS. WE WOULD PROBABLY BE
IN THE STREETS. WE DON'T KNOW
ANYBODY REALLY. MY SON IS
DISABLED. I BROUGHT MY CALL THE
ROLL WERE ABLE TO STILL GO TO
SCHOOL. WE HAVE A DISTANT PLACE
WE CAN STAY AND RECOVER. WE ARE
NOT ROAMING THE STREETS. WE ARE
NOT DEALING WITH DRUG ADDICT
PEOPLE. WE ARE NOT IN ANY KIND
OF HARM. IT MEANS A LOT TO ME
BECAUSE OF THE FACT THAT IT IS A
GOOD PROGRAM TO WHERE YOU DON'T
END UP ON THE STREETS. THE KIDS
ARE TAKEN AWAY. YOUR KIDS OR
YOUR WORLD. THAT'S ALL YOU NEED
TO KNOW. IT MEANS A LOT BECAUSE
COMING FROM A 13-YEAR-OLD SINCE
-- FROM DV, WE CAN DO IT. [
INAUDIBLE ] I HAVE SOMEWHERE
ELSE TO GO. THIS MEANS A LOT TO
US. THANKS, GUYS.
>> THANK YOU, DECEMBER. UP NEXT
IS HILLARY. FOR THE RECORD,
COUNCILMEMBER HOLLINGSWORTH --
>> THIS IS MY DAUGHTER. THIS IS
GABRIELLE.
>> WE WILL HAVE YOU SIGN IN
AGAIN. SAYS YOUR RIGHT HERE, WE
WILL HAVE YOU GO. GABRIELLE
MALONE.
>> MY NAME IS GABBY . TENT CITY
THREE MEANS A LOT TO ME. ME AND
MY FAMILY HAVE COME FROM A
DOMESTIC VIOLENCE HIM. WE HAD
LEFT OUR STEPFATHER THAT WE HAD
BEEN WITH EVER SINCE 2018. I'M
CURRENTLY 13 YEARS OLD. NEXT
MONTH I WILL BE 14. THIS IS MY
FIRST SHELTER. TENT CITY THREE
MEANS HAVING AT LEAST SOMETHING
OVER MY HEAD. AND I AM VERY
GRATEFUL FOR THAT.
>> THANK YOU. THANK YOU FOR
COMING AND SHARING YOUR STORY
WITH US TODAY. GABBY, IF YOU
COULD SIGN IN SO WE HAVE GOT YOU
ON THE RECORD. GOOD MORNING,
HILLARY. GO MARINERS.
>> GOOD MORNING. THANK YOU FOR
HAVING ME HERE . I AM FOR 10
CITY FOUR. I HAVEN'T PERSONALLY
STORY WITH ME AND MY HUSBAND WHO
CAME FROM COLORADO. MY HUSBAND
AFTER HE GOT OUT OF I.C.U. THE
SOCIAL WORKER TOLD ME ABOUT
PRESBYTERIAN CHURCH WHICH WAS
RAN BY . I WAS ABLE -- I WENT IN
THERE AND TOLD THEM EVERYTHING
AND THEY WERE ABLE TO GET ME
CLOSER TO HIM IMMEDIATELY AND
THEY TOLD US ABOUT 10 CITY THREE
AND FOUR. AND WE HAVE BEEN IN
IT. BUT 10 CITY THREE ONLY HAS
10 DAYS. FOUR ONLY HAS FOUR
WEEKS. WE DON'T HAVE HOUSING.
AND WE NEED IT. BECAUSE IF IT
WAS YOUR MOTHER, YOUR FATHER,
YOUR GRANDBABY, YOUR SISTER OR
BROTHER, YOU KNOW, YOU DON'T
WANT IT TO BE OUT THERE DYING.
PLEASE HELP US FUND. PLEASE PUT
US IN YOUR BUDGET AND HELP US .
THANK YOU FOR LISTENING.
>> THANK YOU, HILLARY. UP NEXT
IS LILLIAN, FOLLOWED BY ALLEN,
CASSIE , AND THEN WE WILL TAKE
THE NEW SIGN UPS. GOOD MORNING.
>> GOOD MORNING. I AM A
TRANSGENDER WOMAN WHO IS
DISABLED. I MOVED UP HERE TO
WASHINGTON TO ESCAPE FROM AN
ABUSIVE HOME. WHEN I ARRIVED
HERE, I HAD $10,000. I THOUGHT
EVERYTHING WOULD BE FINE. I
FOUND WHAT I THOUGHT WOULD BE A
DREAM JOB WORKING AT A DOG
DAYCARE TAKING CARE OF ANIMALS.
BUT I HAD TO GIVE IT UP BECAUSE
NO LEASING AGENTS WOULD ANSWER
MY CALL. EVENTUALLY I RAN OUT OF
MONEY, AND I COULD NO LONGER
STAY AT THE HOTELS I HAD BEEN
IN. I WAS USING A BACK PACK WITH
ALL OF MY STUFF IN IT AS A
PILLOW UNDER AN ABANDONED BAGEL
SHOP WITH A TERRIBLE BLANKET
THAT DID NOT KEEP ME WARM. I
COULDN'T SLEEP. A MAN CAME UP
TO ME IN THE MIDDLE THE NIGHT
WITH A CARD AND ASKED IF I WOULD
LIKE TO TRADE FOR A BLANKET OR
PILLOW. I DIDN'T KNOW AT THE
TIME THAT SHARDS MEANT
METHAMPHETAMINE. I DIDN'T WANT
TO KNOW. BUT THANKFULLY, I FOUND
TENT CITY THREE. THEY GAVE ME A
PLACE TO STAY. THEY GAVE ME A
COMMUNITY AND MAYBE FEEL
ACCEPTED AND SAFE. TENT CITY
THREE IS HELPING A LOT OF
PEOPLE. WE HAVE 10 DAYS BEFORE
WE HAVE TO MOVE. WE NEED YOUR
HELP, AND WE NEED YOU TO ADD TO
THE BUDGET JUST SO WE CAN
SURVIVE. I DON'T WANT ANY OF
THESE PEOPLE TO GO THROUGH THAT
NIGHT. I DON'T WANT ANY OF
THESE PEOPLE TO BE FREEZING
UNDER AN ABANDONED SHOP HOPING
THEY SURVIVE THE NIGHT.
TERRIFIED THAT SOMEONE THEY
DON'T KNOW WILL COME UP TO THEM
AND HARM THEM. SO PLEASE, I ASK
THAT YOU SEE IN YOUR HEARTS TO
HELP THESE PEOPLE, ESPECIALLY
THE CHILDREN. THANK YOU.
>> THANK YOU. UP NEXT. GOOD
MORNING.
>> GOOD MORNING. I LIVE AT 10
CITY THREE. -- TENT CITY THREE.
AS I AM SURE YOU ARE ALL AWARE,
IT HAS BEEN A LONG TIME FOR
SHARE/WHEEL BECAUSE WITHOUT
SHELTER PEOPLE DIE. SO FAR THIS
YEAR OVER 200 PEOPLE HAVE DIED
YOUR UNHOUSED. THAT IS NEARLY 1
PER DAY. THAT IS ONE PER DAY TOO
MANY. BY FAR. I DON'T THINK ANY
OF YOU ARE FAMILIAR WITH THE
TACTICS IN THE PAST . HE WAS THE
FOUNDER OF THE TENT CITIES. IN
2000. I WAS HERE BEFORE WITH
TENT CITY IN 2011, 2012 AND
2013. GOT RIGHT BACK INTO --
LIVING, CREATING THINGS. AND
WHAT A LOT OF PEOPLE DON'T
REALIZE IS THAT ALL OF US, ANY
OF US, ANYBODY, IS ONE BAD DAY
AWAY. ONE FLAT TIRE THE CAUSES
AN ACCIDENT. ONE SLIP AT A
GROCERY STORE. ONE COUGH AND YOU
BREAK A RIB. SOMETHING THAT IS
GOING TO START TO SPIDER YOU
DOWNWARD THAT YOU CAN'T STOP.
YOU CAN'T DO ANYTHING ABOUT IT
NO MATTER WHAT YOU TRY TO DO.
YOU CAN'T STOP IT. UNTIL YOU
HIT ROCK BOTTOM. ANYBODY AND
EVERYBODY IS ONE DAY AWAY. MOST
AMERICANS ARE TWO PAYCHECKS AWAY
FROM BEING HOMELESS. EVERYBODY
IN THE COUNTRY . THINGS HAVE GOT
TO BE DONE. WE HAVE GOT TO DO
SOMETHING. IT WAS CALLED THE
LAST TWO NIGHTS BUT I DON'T
KNOW HOW YOU FELT, BUT I WAS
FREEZING, LITERALLY. IT WAS 39
DEGREES AND 31 DEGREES. IN A
TENT, THAT'S PRETTY COLD. WE
ARE IN DIRE NEED. WE HAVE 10
DAYS. AND WE HAVE GOT NOWHERE TO
GO AND NO IDEA WHAT TO DO. WE
NEED HELP. THANK YOU.
>> THANK YOU. UP NEXT. GOOD
MORNING.
>> GOOD MORNING. I LIVE IN TENT
CITY 3 . I DON'T HAVE A PLACE
TO LIVE RIGHT NOW. THANK YOU.
>> -- UP NEXT PEERK GOOD
MORNING.
>> GOOD MORNING. WE HAD A BIG
TURNOUT TODAY . TENT CITY 3 AND
TENT CITY 4. LATER TODAY AT NOON
WOMEN IN BLACK STANDS ANOTHER
VIGIL FOR 21 PEOPLE WHO DIED
UNSHELTERED OR BY VIOLENCE . TWO
OF THE DEATHS WERE SUICIDE. A
LOT OF HOMELESS STATS ARE --
DEATHS ARE DEATHS OF DESPAIR.
THAT INCLUDES THE OVERDOSES.
TENT CITIES PROVIDE SAFETY AND
SHELTER, BUT ALSO , COMMUNITY .
AS YOU SEE, AS MANY PEOPLE HAVE
SAID. COMMUNITY IS AS ESSENTIAL
TO SURVIVAL FOR HUMAN BEINGS AS
ANYTHING ELSE . AS FOOD AND
WATER. AND AIR ITSELF. THESE
PEOPLE WANT TO STAY TOGETHER .
NOT JUST DAY IN THEIR TENTS, BUT
STAY TOGETHER. AND THEY NEED
YOUR HELP. THIS WON'T EVEN COST
ANY MONEY . JUST TO FIND A SITE
FOR TENT CITY 3 AND A SITE FOR
TENT CITY 4, AND YOU CAN SAVE
200 LIVES FOR FREE. THANK YOU.
>> THANK YOU. UP NEXT. GOOD
MORNING.
>> GO MARINERS.
>> THANK YOU SO MUCH FOR HAVING
US TODAY. I AM IN DISTRICT 7.
DOWNTOWN, THIRD AND TIME. ACROSS
THE NATION THIS SATURDAY AND
ALSO ON NOVEMBER 4 THE PEOPLE
ARE GOING TO BE MAKING OUR
VOICES HEARD VERY LOUDLY. WE
WANT COMMUNITY. BELONGING IS A
HUMAN RIGHT. WE CARE FOR OUR
NEIGHBORS. EVERY NEIGHBOR. ALL
OF THE TENT CITY NEIGHBORS. THAT
CARE IS NOT GOING TO COME FROM
THE FEDERAL GOVERNMENT. THAT HAS
BEEN VERY CLEAR FOR YEARS . AND
IT IS NOT GOING TO COME IF WE
KEEP TAKING MONEY OUT OF THE
JUMPSTART TAX AND USING IT FOR
THINGS LIKE SURVEILLANCE INSTEAD
OF WHAT IT IS SUPPOSED TO BE
FOR, WHICH IS HOUSING AND HUMAN
RIGHTS. SEATTLE'S OWN REVENUE
STABILIZATION WORK GROUP
REVIEWED 63 DIFFERENT WAYS TO
GET NEW IDEAS FOR REVENUE
STREAMS. THEY DELIVERED NINE
PROGRESSIVE OPTIONS THAT CAN
CLOSE OUR BUDGET GAP SUSTAINABLY
WITHOUT CUTS TO CARE. THE WORK
GROUP EXPLICITLY NOTED ONES THAT
COULD INCREASE THE JUMPSTART TAX
WITHOUT GOING TO OLYMPIA THESE
COULD MAKE IMMEDIATE CHANGES BUT
-- , VERY QUICK CHANGES BY
LOWERING THE PAY THRESHOLD AND
SALARY THRESHOLD. IT DOESN'T
SEEM LIKE WE HAVE A PROBLEM AND
WHERE MONEY CAN COME FROM, WE
ARE JUST NOT COLLECTING IT. AND
THAT IS IMPACTING ALL OF OUR
NEIGHBORS THAT ARE HERE TODAY
THAT HAVE BEEN VERY BRIEF TO
SHOW UP WHO DO NOT KNOW WHERE
THEY ARE GOING TO LIVE IN A
MONTH. THAT IS A TRAVESTY IN
SEATTLE. SO IF WE ARE SO EAGER
AS LEADERSHIP IN SEATTLE TO
COLLECT AND TO SURVEILLED AND
ENFORCE A POLICY, WE COULD START
DOING THAT BY MAKING SURE
COMPANIES ARE PAYING THE JUMP
TASK, INCLUDING NEW COMPANIES
THAT COULD BE PAYING THE TAX.
I'M HERE TO ASKED THAT WE FEED
PEOPLE, NOT FASCISM. WE GO FOR
PROGRESSIVE REVENUE, NOT
WASTEFUL SURVEILLANCE. AND WE
INVEST IN THESE NINE DIFFERENT
WAYS THE SOLIDARITY BUDGET HAS
SHOWN US A WAY FORWARD. THINK
YOU VERY MUCH FOR YOUR TIME
TODAY.
>> THANK YOU. UP NEXT. THEN WE
WILL TRANSFER ONLINE. I SEE ALL
ONLINE PEOPLE ARE PRESENT PEERK
GOOD MORNING.
>> GOOD MORNING.
>> I AM GOING TO PAUSE. IF YOU
WANT TO MOVE THE MICROPHONE
RIGHT UP TO YOUR MOUTH LIKE YOU
ARE A ROCKSTAR. MICK JAGGER.
>> OKAY. THE FIRST, I WANT TO
SAY THANK YOU FOR TENT CITY
THREE. I DON'T HAVE NO PLACE TO
LIVE. TRY TO HELP ME GET A PLACE
TO LIVE. AND NOW, WE HAVE ONLY
10 MORE DAYS TO BE MOVED. WE
DON'T HAVE WHERE WE MOVE. WE
DON'T HAVE NO PLACE TO LIVE.
PEOPLE HAVE NO PLACE TO LIVE.
THE WINTER. THANK YOU.
>> THANK YOU. LAST IN PERSON .
GOOD MORNING TO YOU.
>> GOOD MORNING. FIRST OF ALL,
THANK YOU FOR THE TENT CITY
RESIDENTS FOR SHOWING UP AND
ADVOCATING FOR YOURSELF. PLEASE
KEEP IT UP. ALSO, I SENT ALL OF
YOU AN EMAIL REGARDING
INNOVATIVE SOLUTIONS TO
HOMELESSNESS FROM VARIOUS PODS
THAT ARE SELF-CONTAINED. THEY
ARE HEATED AND HAVE POWER. SOLAR
POWER. THEY ARE INNOVATIVE.
ALSO, I SENT THE SAME LINK IF
YOU DECIDE TO GO WITH SOMETHING
LIKE THAT, AT LEAST INVESTIGATE
HOW MUCH IT COSTS. THINK OF
COLLABORATING WITH THE TRADES
DIVISION ON HELPING TO BUILD
THOSE PODS. I WANT TO THANK THE
SWEET VESTRY IN THE BEVERAGE TAX
BY PROVIDING ORGANIC FOOD TO
PRESCHOOL AND OTHER RESIDENTS IN
THE NEIGHBORHOOD. AND THE SKID
ROW MAYOR WHO ESSENTIALLY SAID
IF YOU ARE PART OF THE PROBLEM,
YOU ALSO NEED TO BE PART OF THE
SOLUTION. THAT IS ALL I HAVE TO
SAY TODAY. THANK YOU FOR KEEPING
UP THE GOOD WORK. APPRECIATE IT.
>> THANK YOU FOR THE NICE CARD
HE LEFT. I AM SURE I AM NOT YOUR
FAVORITE, BUT YOU GAVE ONE TO
EVERYONE. I APPRECIATE YOU
LEAVING US A NOTE.
>> [ INAUDIBLE ]
>> I AM HER FAVORITE. [ LAUGHTER
]
>> FOR THE RECORD. WITH THAT, WE
WILL MOVE TO ONLINE PUBLIC
COMMENTERS. COUNCILMEMBER
HOLLINGSWORTH, YOU'RE WELCOME
TO HAVE THE LAST WORD IF YOU
WOULD LIKE.
>> I HAVE NOTHING. BUT I DO
BELIEVE I AM A FAVORITE.
>> WE WILL BATTLE THAT WENT OUT
LATER. JULIE, THANK YOU FOR YOUR
PATIENCE. AT YOUR CONVENIENCE,
TAKE IT AWAY.
>> [ INAUDIBLE ] SEATTLE CITY
COUNCIL DISTRICT 6 MAC. I AM
CALLING BECAUSE I HAVE A CONCERN
ABOUT MAYOR HARRELL'S BUDGET IN
SO FAR AS IT REDIRECTS MONEY
FROM THE FAMILIES, EDUCATION ,
PRESCHOOL AND PROMISED LEVEE AND
USES IT FOR THE GENERAL FUND. IT
ALSO CUTS THE $20 MILLION IN
MENTAL HEALTH FUNDING FROM THE
CITY BUDGET THAT STUDENTS,
PARENTS AND EDUCATORS ADVOCATED
FOR AND WON IN 2023. I AM
CONCERNED ABOUT THIS FOR A
NUMBER OF REASONS. IF THE
MAYOR'S BUDGET IS TAKING 26% OF
THE LEVY AND MOVING IT TO THE
GENERAL FUND, WHAT THAT
EFFECTIVELY MEANS IS
PROPORTIONALLY 6.3 MILLION ARE
BEING RAISED [ INAUDIBLE ] IT IS
A PROBLEM GIVEN SEATTLE PUBLIC
SCHOOLS ALREADY SAY SOMETHING OF
A FUNDING CRISIS AT THE STATE
LEVEL. [ INAUDIBLE ] PLEASE MAKE
SURE THAT ALL THE EDUCATION
DOLLARS IN THE FEPP LEVY --
>> WE'RE GOING TO GIVE YOU
ANOTHER MINUTE, JULIA. YOU ARE
BREAKING UP SO MUCH THAT IT IS
HARD TO HEAR YOU. WE ARE
RESTARTING YOUR TIME FOR AN
ADDITIONAL MINUTE, WHICH IS A
LITTLE BIT MORE THAN YOU HAD.
JUST WANT TO GIVE YOU THE
OPPORTUNITY TO SPEAK. CAN YOU
HEAR US? JULIA, I AM GOING TO
ASK YOU TO CALL BACK IN . WE
HAVE TWO MORE SPEAKERS. ABOUT
FOUR MORE MINUTES BEFORE YOU
NEED TO COME SPEAK TO US AGAIN,
AND WE WILL PUT YOU RIGHT UP.
>> WE CAN TAKE MATT NEXT.
>> JULIA, CALL BACK IN. MATT, I
SEE YOU ARE OFF MUTE. WELCOME.
>> THANK YOU. I AM A RESIDENT OF
DISTRICT 3 . REPRESENTED BY
HOLLINGSWORTH. I AM HERE TO TALK
ABOUT THE PUBLIC SAFETY BUDGET .
NOT TOO LONG AGO MAYOR HARRELL
SIGNED AN EXECUTIVE ORDER TO
PROTECT SEATTLE FROM FEDERAL
TROOPS . THOUGH THIS IS AN
UNENFORCEABLE ORDER, IT DOES ,
THE NATURE OF PUBLIC SAFETY HAS
CHANGED SOMEWHAT IN THE LAST FEW
MONTHS. WE ARE SEEING A LOT OF
FEDERAL OVERREACH , AND THERE IS
A FEELING WE NEED TO PROTECT OUR
CITIZENS. BASICALLY WITH THE
SOCIAL OPPRESSION AND STATE
VIOLENCE THAT WE SEE IN A CITY
LIKE CHICAGO. WHAT WE KNOW ABOUT
SOCIAL AND -- SOCIAL OPPRESSION
AND STATE VIOLENCE IS THAT
SURVEILLANCE IS A VERY POWERFUL
TOOL . I URGE THE BUDGET
COMMITTEE TO CONSIDER
REALLOCATING THE PROJECTED $6.8
MILLION EXPANSION OF CCTV IN
REAL-TIME PRIME CENTER IT WILL
COST US AND USE THAT MONEY TO
HELP WITH OTHER ISSUES
REPRESENTED IN THE NINE POINTS
OF THE SOLIDARITY BUDGET. YOU
HAVE HEARD FROM A LOT OF PEOPLE
THAT ARE DESPERATE HERE TODAY.
IT COULD REALLY HELP. I BELIEVE
THIS EXPANSION OF SURVEILLANCE
UNLOCKS THE BACK DOOR FOR THE
VERY THING THAT MAYOR HARRELL
HAS STATED HE WANTS TO PROTECT
US FROM. THANK YOU FOR
CONSIDERING.
>> THANK YOU. UP NEXT . I SEE
YOU ARE ALREADY OFF MUTE. IF YOU
WANT TO LET JULIA KNOW WE STILL
CAN'T HEAR HER IF SHE WANTS TO
CALL BACK IN. GOOD MORNING.
>> GOOD MORNING. I AM A
HOMEOWNER IN BALLARD. I WAS
LOOKING THROUGH THE BUDGET THAT
ALL THE ITEMS ARE SUPPOSED TO BE
TO PROTECT PEOPLE TO MAKE UP FOR
CHANGES AT THE FEDERAL
GOVERNMENT DUE TO BUDGET CUTS
AND ALL THAT. I'M LOOKING AT
MONEY FOR FOOD ACCESS, AND ALSO
IMMIGRANT AND REFUGEE AFFAIRS.
THIS IS ALL ONE TIME MONEY. THAT
MEANS THIS ISN'T GOING TO BE
BACK NEXT YEAR. THAT REALLY
NEEDS TO BE CHANGED TO BE
ONGOING. IT IS LUDICROUS TO
THINK THAT THE LEVEL OF NEED IS
SOMEHOW GOING TO BE LOWER NEXT
YEAR. THEY SHOULD NOT BE
SOMETHING THAT COMMUNITY MEMBERS
HAVE TO COME BACK FOR AND START
FIGHTING AGAIN NEXT YEAR IN THE
BUDGET. THAT ABSOLUTELY NEEDS TO
GET SHIFTED TO BEING ONGOING
FUNDING AS OPPOSED TO ONE TIME.
I ALSO WANT TO POINT OUT THAT
ALL THAT MONEY COMBINED THAT IS
SUPPOSED TO BE TO PROTECT US IS
LESS THAN THE CITY IS ACTUALLY
SPENDING. MAY HAVE HEARD FROM A
LOT OF PEOPLE AT TENT CITY 3 .
THERE ISN'T ENOUGH HOUSING.
THERE ISN'T ENOUGH SHELTER
RIGHT NOW IN THE CITY. UNTIL WE
HAVE ENOUGH SHELTER AND HOUSING,
WE SHOULD ABSOLUTELY -- WE
SHOULD NOT -- IF YOU GO AROUND
THE CITY YOU SEE A WHOLE LOT OF
PEOPLE STUCK HAVING TO SLEEP
REALLY ROUGH OUTSIDE. BECAUSE I
CAN'T EVEN HAVE A TENT BECAUSE
OF THE SET ONE UP, THEY QUICKLY
GET SWEPT. IT IS A LOT COLDER IF
YOU'RE TRYING TO SLEEP OUTSIDE
AND CAN'T EVEN HAVE A TENT.
THAT IS A MASSIVE ISSUE. WE
REALLY NEED TO REALLOCATE THAT
MONEY. SIMILARLY, WE ALSO ARE
GIVING $26 MILLION FOR MORE
COPS. THEY ALREADY HAVE THIS
MONEY IN THEIR BUDGET. THEY HAVE
BEEN REALLOCATING THAT MONEY FOR
YEARS. IF THEY'RE ASKING FOR
ADDITIONAL MONEY, THEY HAVE TO
PAY WHAT THEY BEEN USING, ALL
THE SALARY MONEY THAT HAS BEEN
SITTING IN THE BUDGET FOR YEARS.
I BELIEVE 28 MILLION, AT LEAST,
OF THAT MONEY THEY SAID THEY
HAVE ALREADY ALLOCATED TO OTHER
EXPENDITURES. THAT NEEDS TO BE A
QUESTION SO PEOPLE ACTUALLY KNOW
WHAT THE MONEY IS GOING TO PUT A
LOT OF IT IS GOING INTO
SURVEILLANCE, WHICH DOES NOT
KEEP US SAFE. ADDITIONALLY, IT
IS DISAPPOINTING THAT SO MUCH OF
THE FEPP LEVY IS BEING USED TO
BACKFILL ITEMS. THANK YOU.
>> AND NOT LEAST, WE WILL TRY
JULIA ONE MORE TIME. I SEE
YOU'RE STILL HERE AND OFF MUTE.
I'M GOING TO ASK OUR CLERK TO
DOUBLE CHECK .
>> SHE SHOULD BE ABLE TO SPEAK.
ARE YOU THERE?
>> HELLO. YES. CAN YOU HEAR ME?
>> YES, WE CAN. YOU HAD 40
SECONDS LEFT ON YOUR CLOCK WHEN
WE WERE HAVING TROUBLE. WE HAVE
GIVEN YOU A FULL MINUTE TO GO
FROM HERE. GOOD MORNING.
>> GOOD MORNING. I'M SORRY. I
WILL FINISH MY COMMENT AS
QUICKLY AS I CAN. [ INAUDIBLE ]
MORATORIUM . PROMISED OUR
STUDENTS ALTERNATIVE POLICING IN
SCHOOL. HOWEVER, SINCE THEN,
SOME SCHOOLS [ INAUDIBLE ] THE
CONTEXT AROUND THESE REMAIN WITH
JUST A FEW SCHOOLS AND HAVE YET
TO MEET THE FOUR COMMUNITY AN
ALTERNATIVE LEASING. I WOULD
LIKE TO ENCOURAGE THE COUNCIL TO
CARRY THROUGH THE PROMISE TO OUR
STUDENTS FOR A SAFETY PROGRAM.
AND THAT REQUIRES ADEQUATE AND
SUSTAINED FUNDING FOR
EVIDENCE-BASED PROGRAMS. THANK
YOU FOR YOUR CONSIDERATION. BYE.
>> THANK YOU, JULIA. WITH THAT,
JUST DOUBLE CHECKING BUT NO ONE
ELSE HAS SIGNED UP IN PERSON, IS
THAT CORRECT?
>> CORRECT.
>> SEEING AS WE HAVE NO ONE ELSE
VIRTUALLY OR PHYSICALLY PRESENT,
WE WILL MOVE ON TO THE NEXT
AGENDA ITEM. CLERK, PLEASE READ
THE SHORT TITLE OF THE FIRST
AGENDA ITEM INTO THE RECORD.
>> AGENDA ITEM 1, INTRODUCTION
AND PROCESS OVERVIEW.
>> FANTASTIC. IF YOU COULD JUST
READ EVERYTHING UP UNTIL AS DOT
INTO THE RECORD AT THIS TIME,
THAT WOULD BE HELPFUL. OR IS
THAT THE ONLY PRESENTATION?
>> ONE SECOND.
>> I BELIEVE THE OTHER
PRESENTATION IS THAT WE WILL
HAVE A GENERAL FUND AND
JUMPSTART FUND ANALYSIS FOR THE
MORNING.
>> AGENDA ITEM 1, INTRODUCTION
AND PROCESS OVERVIEW, AND ITEM 2
WILL BE THE OVERVIEW OF THE 2026
PROPOSED BUDGET ADJUSTMENTS, AND
ITEM 3 THE GENERAL FUND
BALANCING AND SUSTAINABILITY
ANALYSIS . ALL PROVIDED BY
CENTRAL STAFF.
>> FANTASTIC. THAT WILL GET US
THROUGH THE MORNING. COLLEAGUES,
WE HAVE ADJUSTED THE PROJECTED
LUNCH TIME FOR 12:30 TO 1:30 TO
ALLOW EVERYONE TO TAKE ONE LAST
STOP AT CITY DRIED SHOULD YOU
NEED TO . IT CLOSES AT 1:00 P.M.
BEFORE WE BEGIN WITH THIS
PRESENTATION, I WANT TO JUST
SHARE THAT NOW IS THE TIME TO
SHARE LIMIT IDEAS WITH
COLLEAGUES TO SEEK COSPONSORS
AND TO PUT IDEAS TO PAPER. LAST
YEAR THERE WAS A SMALL
DISCREPANCY REGARDING
COSPONSORS. SO THIS YEAR I WILL
ALSO BE COMING AROUND TO CONFIRM
INDIVIDUALLY WITH YOU THAT YOU
HAVE COSPONSORED ITEMS. THIS IS
NOT TO BE PUNITIVE . WE WILL BE
PROVIDING THE REQUISITE GRACE
TIME AS MUCH AS WE CAN ALLOW TO
SEEK DIFFERENT COSPONSORS. THIS
IS JUST A WAY FOR US TO ENSURE
THAT THERE IS BROAD SUPPORT ON
THE DAIS FOR THE IDEA. SO IF YOU
COSPONSORED SOMETHING AND WANT
TO REMOVE YOUR NAME, THAT MAIN
SPONSOR WILL HAVE TIME TO FIND A
NEW COSPONSOR. IF YOU ARE THE
MAIN SPONSOR AND SOMEBODY DROPS
OFF, YOU ALSO HAVE TIME TO GO
GET A NEW COSPONSOR. AND THEN,
ONCE THEY HAVE BEEN SUBMITTED, I
WILL COME BACK AND CHECK WITH
EVERYONE. AGAIN, THESE PROPOSALS
DO NOT NEED TO BALANCE AGAINST A
FUNDING SOURCE AT THIS TIME.
THAT WILL COME LATER. YOU WILL
NEED TO SUBMIT AMENDMENTS AND
COSPONSORS -- YOU CAN SUBMIT
AMENDMENTS AND COSPONSORS AT ANY
TIME . THE WEB FORM CLOSES NEXT
TUESDAY AT NOON. THAT IS A HARD
STOP. AND SO, IT IS BETTER TO
SUBMIT AN IDEA THAN -- AND DROP
IT RATHER THAN NOT SUBMIT IT. AS
WE MOVE INTO THE SECTION OF THE
BUDGET CYCLE, THAT WE ARE ABOUT
TO HAVE THIS PRESENTATION ON,
CENTRAL STAFF WILL BE PRESENTING
THE ISSUES THEY HAVE IDENTIFIED
THROUGH THEIR ANALYSIS OF THIS
BUDGET. IT IS A DENSE DOCUMENT.
AND WE HAVE SOME OF THE BEST
ANALYSTS IN WASHINGTON STATE. I
AM EXCITED TO HEAR. WITH THAT,
WE WILL BEGIN THIS SECTION OF
THE BUDGET CYCLE AND
PRESENTATION WITH AN OVERVIEW .
JUST WHERE WE ARE, WHAT WE ARE
DOING RIGHT NOW AND WHERE WE ARE
GOING FROM HERE. WITH THAT, I
WILL TURN IT OVER TO DIRECTOR
NOBLE AND CALVIN CHOW OF CENTRAL
STEPPER
>> AS I SAY, FLATTERY WILL GET
YOU EVERYWHERE. I AM GOING TO
TAKE A FEW MOMENTS TO GIVE YOU
AN OVERVIEW OF WHAT TO EXPECT
OVER THE NEXT THREE AND FOUR
DOWN SCANNING -- COUNTY NEXT
MONDAY. A SENSE OF WHAT WE ARE
GOING TO PRESENT TO YOU. AS
COUNCILMEMBER STRAUSS DESCRIBE,
WE ARE NOW ENTERING WHAT WE HAVE
CALLED STAGE TWO OR STEP TWO OF
THE BUDGET PROCESS. THE FIRST OF
THE SESSIONS, THE THREE DAYS
HERE THAT WILL BE DISCUSSION OF
POLICY CONSIDERATIONS THAT
CENTRAL STAFF HAVE IDENTIFIED,
FOLLOWED BY NEXT MONDAY AN
UPDATE ON THE REVENUE FORECAST.
GIVE YOU A SENSE OF WHERE WE
ARE. WILL THEN MOVE RELATIVELY
QUICKLY. THING START TO PICK UP
NOW IN TERMS OF THE PACE OF
ACTIVITY HERE AT THE BUDGET
COMMITTEE. WE WILL GIVE YOU A
PREVIEW OF THE NEXT PHASE, WHICH
IS SHOWN IN PURPLE. I LOVE THE
COLORS. A DISCUSSION OF YOUR
SPECIFIC BUDGET PROPOSALS.
POTENTIAL AMENDMENTS TO THE
BUDGET. LET ME FIRST TALK ABOUT
STEP TWO. AGAIN, WE'RE GOING TO
DO THREE DAYS OF WHAT WE HAVE
DESCRIBED AS POLICY
CONSIDERATION OR ISSUE
IDENTIFICATION. TODAY THE
MORNING WILL BE FOCUS REALLY AT
A HIGH LEVEL ON THE BUDGET
OVERALL. HAVE TWO PRESENTATIONS
FOLLOWING LINE. ONE IS FROM
REMOTELY. IS GETTING OVER A
LITTLE BIT OF A COLD. BETTER FOR
ALL OF US. PUBLIC-HEALTH
THOUGHTS IN MY. YOU WILL DO
THAT. HIS LOOK IS AT THE BUDGET
OVERALL . WE TEND TO FOCUS ON
THE GENERAL FUND AND PET,
BECAUSE THOSE ARE THE MOST
ELECTABLE FUNDS. IT IS ALSO
USEFUL TO TAKE A LOOK AND HAVE
THE BIG PICTURE. WE WILL DO
THAT. WERE ALSO GOING TO USE
THIS AS AN OPPORTUNITY TO COVER
A COUPLE OF CROSSCUTTING ISSUES
ERROR ANALYSIS IS GENERALLY
FOCUSED DEPARTMENT BY
DEPARTMENT. BUT THERE ARE A
COUPLE OF POLICY AREAS OF
EMPHASIS IN THE MAHER'S BUDGET
. IN PARTICULAR, WE'RE GOING TO
TALK ABOUT THE WORLD CUP AND ITS
MANAGERS ASSOCIATED WITH IT. AND
ALSO, GRAFFITI ABATEMENT AND
EXPENDITURES ASSOCIATED WITH IT.
SIGNIFICANT PROPOSALS IN BOTH
SPACES, AND THEIR CROSS
DEPARTMENTAL. A GOOD WAY TO
COVER THOSE. ALSO A LITTLE BIT
ABOUT THE CAPITAL IMPROVEMENT
PROGRAM. THE CIP. THIS IS NOT
GENERALLY AN AREA OF PARTICULAR
FOCUS, BUT THERE ARE SPECIFIC
PROJECTS I KNOW OF INTEREST TO
COUNCIL MEMBERS. HIS WILL BE A
HIGH-LEVEL OVERVIEW. NEXT
PRESENTATION WILL BE FROM TOM
MIKE CELL FOCUSING SPECIFICALLY
ON THE GENERAL FUND. ALSO ON THE
PAYROLL EXPENSE TAX GIVEN THE
CURRENT POLICIES. THOSE ARE
RELATIVELY FUNGIBLE, ALMOST
COMPLETELY FUNGIBLE REVENUE
SOURCES. THIS IS A BOOK IS
ULTIMATELY ON THE SUSTAINABILITY
OF THE BUDGET PROPOSAL. YOU WILL
SEE IT IS A VERY TECHNICAL
PRESENTATION, AT LEAST IN PARTS.
IT IS REALLY AN ATTEMPT -- MORE
THAN AN ATTEMPT, IT IS AN
EXERCISE IN TRACKING THE CITY
'S REVENUES AND UNDERSTANDING
HOW IT IS THAT WE HAD A BALANCED
ENDORSED BUDGET AND HOW THAT
CAME OUT OF BALANCE WITH THE
REVENUE FORECAST UPDATES IN
APRIL AND AUGUST AND HOW THE
MAYOR HAS REBUILT A BALANCE
PROPOSAL FOR 2026, AND THE
IMPLICATIONS OF SOME OF WHAT HAS
BEEN PROPOSED FOR 2027 AND
BEYOND. SO AGAIN, IN THAT
PRESENTATION, THERE ARE A NUMBER
OF POTENTIAL OPTIONS FOR YOU IN
TERMS OF SOME DIRECTION AND
ACTUAL ACTIONS WE CAN TAKE WITH
RESPECT TO THE BUDGET. THOSE ARE
THE BIG ELEMENTS FOR TODAY. THEN
WE WILL BREAK INTO, WE WILL
START DEPARTMENT BY DEPARTMENT.
THIS IS A SCHEDULE THAT SHOWS
YOU WHAT WE ARE PLANNING IN
TERMS OF DEPARTMENT LEVEL
PRESENTATION STARTING THIS
AFTERNOON WITH DEPARTMENT OF
TRANSPORTATION AND SEATTLE PARKS
AND RECREATION. I WON'T BOTHER
TO READ THE REST. YOU CAN SEE
IT. I WANT TO FOCUS FOR A MOMENT
ON THE FINAL DATE HERE ON MONDAY
. IN THE MORNING, THE CITY
REVENUE FORECAST COUNCIL, WHICH
INCLUDES TWO COUNCIL MEMBERS,
CHAIR STRAUSS AND COUNCIL
PRESIDENT NELSON, WILL RECEIVE
AN APPROVED REVENUE FORECAST
FROM THE INDEPENDENT OFFICE OF
ECONOMIC AND REVENUE FORECASTS.
AND IN THE AFTERNOON, WE WILL
BRING THE DIRECTOR OF THE
FORECAST OFFICE HERE , MYSELF
AND DAN, TO WALK YOU THROUGH
WITH THE REVENUE IMPLICATIONS
ARE OF THAT FORECAST AND A HIGH
LEVEL DESCRIPTION OF THE
ECONOMIC CHANGES THAT ARE
DRIVING IT. THAT IS WHAT IS LAID
OUT FOR THE NEXT THREE AND FOUR
DAYS FOR YOU. ON THAT LAST DAY,
WE WILL POST TO THE AGENDA THE
POLICY CONSIDERATION PAPERS FOR
THE DEPARTMENTS THAT AREN'T
LISTED ON THE SCHEDULE. WE HAVE
WRITTEN UP POLICY CONSIDERATION
ANALYSES FOR ALL THE
DEPARTMENTS. THEY'RE NOT ALL
WORTHY OF PRESENTATION. AT THE
LAST MINUTE, I WILL OFFER SOME
DIRECTION OF ABOUT WHICH OF
THOSE YOU MIGHT FIND MORE
INTERESTING. ONCE WITH POLICY
CONSIDERATIONS YOU MIGHT WANT TO
CONSIDER. WE HAD TO BALANCE ON
THE TIME WE HAVE HERE AT THE
TABLE IN THE AREAS OF INTEREST.
JUST A PREVIEW. THE CALENDAR
MOVES RELATIVELY QUICKLY AFTER
THAT. STEP THREE WILL BE THE
PRESENTATION OF YOUR INDIVIDUAL
PROPOSALS .
>> BEN, REAL QUICKLY, TAKING A
LITTLE BIT OF A DEEP BREATH.
STEP THREE IS IN TWO WEEKS FROM
NOW, CORRECT?
>> CORRECT. DEADLINE IS FOR
INITIAL PROPOSALS OCTOBER 21 BUT
AGAIN, THOSE THAT HAVE TO BE
FULLY BAKED, BUT WE NEED TO GET
IDEAS ON THE TABLE FOR CENTRAL
STAFF TO START WORKING UP THE
ANALYSES. I WANTED TO HIGHLIGHT
THAT DEADLINE IN PARTICULAR. THE
PRESENTATIONS WILL THEN COME IN
WEEKS FIVE AND SIX. CHAIR HAS
ACTUALLY COVERED MOST OF WHAT IS
HERE. I JUST WANTED TO HIGHLIGHT
THAT DEADLINE FOR YOU. AGAIN,
THOSE INDIVIDUAL POLICY
PROPOSALS WILL BE , BECOME PART
OF THE BALANCING PACKAGE THAT
CHAIR STRAUSS WILL PROPOSE THE
WEEK FOLLOWING THAT.
>> DIRECTOR, BEFORE YOU MOVE ON,
COLLEAGUES, IF YOU HAVE
QUESTIONS ALONG THE WAY, JUST
RAISE YOUR HAND. WE ARE GOING TO
TAKE QUESTIONS ALONG THE WAY.
WANT TO KNOW A CHANGE WE HAVE
BEEN ABLE TO MAKE IN PROCESS, IN
THE BUDGET PROCESS FROM LAST
YEAR. WE DID NOT HAVE THE SYSTEM
SET UP FOR COSPONSORS. SO WHEN
AN ITEM CAME UP IN COMMITTEE, WE
DIDN'T HAVE A GOOD PROCESS FOR
PEOPLE ADDING THEIR NAME. WE
HAVE CHANGE THAT THIS YEAR. SO
IF SOMEBODY , A MAIN SPONSOR
WITH TWO COSPONSORS PUTS FORWARD
AN IDEA IN OPEN SESSION, YOU CAN
ADD YOUR NAME TO IT. JUST WANTED
TO HIGHLIGHT THAT NOW SO YOU ARE
PREPARED FOR IT AS WE GET THERE.
>> I ALSO WANT TO HIGHLIGHT
ANTICIPATING A LITTLE BIT OF
TENSION, TO BEGIN A. WHEN WE
WRITE UP THE PROPOSALS, WE
PROVIDE , CENTRAL STAFF PROVIDES
A SUMMARY DESIGNED TO BE
INFORMATIVE. NOT NECESSARILY A
PERSUASIVE SUMMARY . BECAUSE WE
WILL THEN -- THAT IS A DOCUMENT
MEANT TO SERVE ALL OF YOU. AS
ISSUES COME UP HERE FOR
DISCUSSION, I HAVE SEEN AND
DON'T DOUBT YOUR PERSUASIVE
ABILITIES. THAT WILL BE THE TIME
FOR YOU TO MAKE THOSE CASES.
AGAIN, WE'RE GOING TO TRY TO BE
FULLY INFORMATIVE. BUT
UNDERSTAND THAT THERE IS A
BALANCE. APPRECIATE YOUR
ACKNOWLEDGMENT OF THAT. WE ARE
LOOKING FORWARD TO THAT WORK.
RIGHT NOW, THE TEAM IS WORKING
HARD TO MEET DEADLINES AND MAKE
AND DEVELOP THESE PAPERS AND
DEVELOP THE POWERPOINT SLIDES
YOU SEE . IF THOSE ARE
COMPLETED, THEY ARE EVER MORE
AVAILABLE TO ENGAGE WITH YOU
WITH POTENTIAL IDEAS. THE 21st
IS THE LAST DAY, BUT YOU CAN
BRING THEM SOONER. IN
PARTICULAR, AS THE PRESENTATIONS
ARE COMPLETED, STAFF WILL THEN
BE AVAILABLE. SOME OF THEM HAVE
MULTIPLE ASSIGNMENTS. THEY MAY
STILL WORK TOWARDS THE NEXT ONE.
BUT YOU GET THE IDEA. WE LOOK
FORWARD TO THAT ENGAGEMENT AND
LOOK FORWARD TO IT AS TIMELY AS
POSSIBLE. AGAIN, JUST LOOK AT
THE CALENDAR. HOW RELATIVELY
QUICKLY THINGS BEGIN TO MOVE.
FOR A TURN THIS OVER, LET ME
JUST SAY A FEW THINGS BY WAY OF
INTRODUCTION AT MY LEVEL. WE
WILL GET THE REVENUE FORECAST
NEXT MONDAY . JUST A HIGHLIGHT
TO YOU THAT UNCERTAINTY IS
REALLY THE NAME OF THE GAME
RIGHT NOW IN THE ECONOMIC WORLD.
WE SAW SOME INITIAL SLOWING IN
THE LABOR MARKET , IN
PARTICULAR, IN AUGUST AND
SEPTEMBER. WE ARE NOW
MEANINGFULLY DRIVING BLIND, IF
YOU WILL, AND THAT THE SHUTDOWN
OF THE FEDERAL GOVERNMENT IS
ACTUALLY DEPRIVING US OF SOME
KEY ECONOMIC DATA THAT COULD
HELP INFORM THE UNDERSTANDING OF
WHERE WE ARE HEADED. THAT WAS TO
BE A JOBS REPORT LAST FRIDAY, I
BELIEVE. EITHER WAY, IT WAS NOT
PUBLISHED. GIVES YOU AN IDEA OF
THE COMPOUNDING UNCERTAINTY. IN
TERMS OF THE OVERALL BUDGET
SITUATION, THE MAYOR HAS
PROPOSED A BALANCED BUDGET FOR
2026. TOM WILL PROVIDE YOU MUCH
MORE DETAIL IN THE SPACE. ONE OF
THE KEY ISSUES, AND YOU WILL
HEAR IT TODAY, IS
SUSTAINABILITY. ALTHOUGH IT IS
BALANCE FOR 2026, THE BUDGET ON
A PROJECTED BASIS IS DEEPLY OUT
OF BED BALANCE FOR 2027. THAT IS
AN ISSUE YOU WILL NEED TO
CONSIDER AS YOU LOOK THROUGH
THIS. IT IS UNCLEAR TO ME
WHETHER OR NOT ACTUALLY ALL OF
THE INITIATIVES PROPOSED WILL
ULTIMATELY BE IMPLEMENTED,
BECAUSE MANY OF THEM RELY ON ONE
TIME FUNDING. IT WILL BE A
DIFFICULT DECISION WHETHER TO
MOVE FORWARD WITH THOSE IN THE
FACE OF THAT DEFICIT. WE WILL
TALK MORE ABOUT THAT AS WELL.
AND AGAIN, AT A HIGH LEVEL, AND
TOM WILL RETURN TO THE THEME.
THE MAYOR HAS BALANCED THE
BUDGET FOR 20 AND AGAIN, AT A
HIGH LEVEL, AND TOM WILL RETURN
TO THE THEME. THE MAYOR HAS
BALANCED THE BUDGET FOR 2026 IN
PART BY BRINGING THE REVENUE TO
THE TABLE. HE JUST RECENTLY
APPROVED AND AUTHORIZED A 0.1%
SOUND -- SALES TAX. AT THE SAME
TIME, THE PROJECTED BUDGET
DEFICIT IS ACTUALLY INCREASED IN
TERMS OF THE OUT YEARS.
EMPHASIZING THE QUESTION OF
SUSTAINABILITY AND WHERE WE ARE
HEADED. THERE IS A LAST
APPOINTMENT. AND WAYS OF
INTEREST, LAST YEAR I
HIGHLIGHTED ONGOING CHALLENGES
AND WENT BACK TO LOOK AT THAT.
INTERESTING, I WOULD ARGUE THEY
ARE ALL THE SAME CHALLENGES.
THAT GIVES YOU A SENSE OF HOW
DIFFICULT SOME OF THIS WORK IS.
I HIGHLIGHTED BUDGET
SUSTAINABILITY, BECAUSE I THINK
IT IS EVEN MORE IMPORTANT THAN
IT WAS LAST YEAR GIVEN THE
OVERALL STRUCTURE WHAT HAS BEEN
PROPOSED. BUT I SAY THAT KNOWING
THAT AT THE SAME TIME THE CITY
FACES ONGOING ISSUES WITH
HOMELESSNESS, HOUSING
AFFORDABILITY, PUBLIC SAFETY,
DOWNTOWN RECOVERY . NOT TRYING
TO PICK ONE NEIGHBORHOOD OVER
THE OTHER, DOWNTOWN RECOVERY IS
A MEASURE OF ECONOMIC VITALITY
LOCALLY IN THE ECONOMIC ACTIVITY
LOCALLY. THOSE ISSUES REMAIN AS
YOU BEGIN AND CONSIDER THIS
BUDGET. WITH THAT, AND WITHOUT
QUESTIONS, IT LOOKS LIKE CHAIR
STRAUSS HAS SOME WORDS.
>> BEFORE WE MOVE ON, STAY ON
THE SLIDE FOR NOW AND WE WILL GO
BACK TO THE FIRST SLIDE BRIEFLY.
LOOKING AT THE ONGOING
CHALLENGES, BRINGING US BACK TO
WHERE WE WERE AT THE END OF
NOVEMBER OF LAST YEAR, WE HAD
GONE THROUGH A NUMBER OF
DIFFERENT AVENUES CREATING
BETTER BUDGET SUSTAINABILITY,
BETTER BUDGET REFORM THROUGH
PROCESS AND CONTENT. WHAT WE
DIDN'T SEE COMING THIS YEAR WAS
THE FEDERAL ELECTION, THE
FEDERAL CUTS IN FUNDING , AND
THE ECONOMIC VOLATILITY. THAT
EVEN PLAYS INTO TODAY . AS YOU
MENTIONED, THE JOBS REPORT HAS
BEEN DELAYED. I BELIEVE THERE IS
ANOTHER INFLATION REPORT THAT
WAS SUPPOSED TO COME OUT TODAY
THAT HAS BEEN DELAYED. THIS
LEVEL OF VOLATILITY AND
UNCERTAINTY HAS EXACERBATED BOTH
THE NEED OF COMMUNITY MEMBERS
FOR RESOURCES, AS WELL AS A LACK
OF PREDICTABILITY AS FAR AS OUR
OWN FUNDING SOURCES. THAT CHANGE
IN THE LAST YEAR, WHILE BUDGET
SUSTAINABILITY REMAIN SOMETHING
WE HAVE TO ADDRESS, AS WE SAID
LAST YEAR, WE WOULD CONTINUE
ADDRESSING THIS YEAR. WE DID A
LOT OF HARD WORK LAST YEAR, AND
MUCH OF THAT WAS THEN
COMPOUNDED, AS DIRECTOR NOBLE
STATED, THIS YEAR WITH THINGS WE
DID NOT SEE COMING. WE COULD GO
BACK UP TO THE PART ABOUT THE
ECONOMIC REVENUE FORECAST.
COLLEAGUES, ON MONDAY THE
REVENUE FORECAST COUNCIL , THIS
WAS SOMETHING THAT WAS CREATED
AS AN INDEPENDENT OFFICE DURING
THE PANDEMIC. OVER THE LAST FEW
YEARS, WE HAVE BEEN GETTING USED
TO HOW THE SYSTEM WORKS. IT IS A
FORECAST COUNCIL COVERED BY TWO
COUNCIL MEMBERS AND TWO MEMBERS
OF THE EXECUTIVE TEAM . WE HAVE
BEEN MEETING AND CONFERENCE
ROOMS. SEATTLE CHANNEL HAS HAD
TO BRING THEIR OWN CAMERAS TO
SET UP , SOMETIMES, THE AUDIO IS
NOT GREAT. WE HAVE MADE THE
DECISION TO COME IN AND USE THE
COMMITTEE TABLE HERE IN CHAMBERS
BECAUSE SEATTLE CHANNEL IS
ALREADY SET UP. THE MICROPHONES
ARE ALREADY SET UP. THE AWKWARD
PART IS THAT THERE ONLY TWO
COUNCIL MEMBERS THAT SIT ON THIS
COUNCIL. AND SO, IN THE MORNING
SESSION, IF YOU WOULD LIKE TO
PARTICIPATE BY LISTENING, YOU
ARE MORE THAN WELCOME TO. IN THE
AFTERNOON, THAT IS WHY WE WILL
BRING THE DIRECTOR BACK TO YOU
OUR COMMITTEE WHERE YOU WILL
HAVE, IT IS SCHEDULED FOR THE
WHOLE AFTERNOON. YOU CAN ASK 15
MINUTES OF QUESTIONS, 20
MINUTES, HOWEVER MUCH YOU WANT,
BUT THE MORNING WILL BE RESERVED
FOR THAT FORECAST COUNCIL.
WANTED TO HIGHLIGHT THAT. I HAVE
GOT NO ADDITIONAL QUESTIONS OR
COMMENTS. ANY QUESTIONS ON THE
PROCESS OF WHERE WE ARE AT
TODAY? I AM SEEING COUNCILMEMBER
KETTLE.
>> CHAIR, ONE OF THESE THINGS,
WE ALL HAVE VERY BUSY SCHEDULES.
AND THEN ALL OF THE SUDDEN WE
HAVE THE SCHEDULE FACING US, AND
WE HAVE A FULL DAY TODAY.
THURSDAY, FRIDAY, MONDAY. THAT
WE HAVE COURTNEY WITH COLLEAGUES
BY TUESDAY. COLLEAGUES, I'M NOT
SURE WHERE WE ARE GOING TO
COORDINATE. I'M LOOKING AT MY
TUESDAY SCHEDULE, WHICH IS
PROBABLY NOW GOING TO GET WIPED
OUT. AND SO, I DEFINITELY WANT
TO EXTEND THIS COORDINATION
BECAUSE ALL OF THE SUDDEN IS
RIGHT HERE, RIGHT NOW.
>> THANK YOU. AND THE BENEFIT OF
FOLKS WHO WANT TO SHARE THINGS
AS CENTRAL STAFF IS IDENTIFYING
IDEAS. WAY TO COORDINATE IN OPEN
SESSION. COUNCILMEMBER SAKA FOR
>> THANK YOU, MESSENGER. GREAT
POINT . I INTEND TO START THAT
PROCESS TODAY. HERE . WE ARE
STILL, MY OFFICE IS STILL
WORKING OUR WAY THROUGH A NUMBER
OF CONCEPTS. BUT FOR ME,
PERSONALLY, I WILL ALSO BE
CARVING OUT MONDAY MORNING AND
TUESDAY MORNING AHEAD OF THE
DEADLINE TO HAVE INDIVIDUAL
ONE-ON-ONE DIRECT CONVERSATIONS
WITH MY COLLEAGUES. TO TALK
ABOUT MUTUAL OPPORTUNITIES FOR
COLLABORATION. THAT IS WHAT I
WILL BE DOING PERSONALLY. TO THE
POINTS MADE, TIME IS SCANT AND
LIMITED BETWEEN NOW AND THE
DEADLINE. THANK YOU.
>> THANK YOU, COUNCILMEMBER
SAKA. AS I TURN IT BACK OVER TO
DIRECTOR NOBLE TO TAKE US
THROUGH THE PRESENTATION, I WILL
AGAIN, MY FAVORITE PHRASE THIS
BUDGET CYCLE SO FAR IS THAT WE
ARE IN CONTROL OF OUR OWN
DESTINY. WE CAN BE HERE UNTIL ,
I'M GOING TO CLOSE COMMITTEE AT
5:00 P.M. BECAUSE WE HAVE THE
MARINERS GAME TODAY. BUT WE
COULD BE HERE TILL 8:00 P.M. OR
GET OUT AT 1:00 P.M. WITH THAT,
OVER TO YOU, DIRECTOR NOBLE.
>> THANK YOU, CHAIR STRAUSS.
>> IF I STOP TALKING. THAT'S
CORRECT.
>> I WILL MUTE. SORRY.
>> I WILL TURN THIS OVER TO
EDIN. GO AHEAD.
>> THANK YOU. GOOD MORNING,
COUNCIL MEMBERS. I AM WITH
COUNCIL CENTRAL STAFF. I
APOLOGIZE FOR NOT BEING IN
PERSON WITH YOU ALL THIS
MORNING. I'M GETTING OVER A
COLD. I DON'T WANT TO PASS MY
BUDGET SNIFFLES TO ANY OF YOU. I
NEED YOU ALL HEALTHY THIS MONTH.
AS DIRECTOR NOBLE JUST
MENTIONED, THE GOAL OF THIS
PRESENTATION, AND THE ASSOCIATED
MEMO DISTRIBUTED YESTERDAY IS TO
PROVIDE A HIGH LEVEL OVERVIEW OF
NOTABLE CHANGES BETWEEN THE 2026
ENDORSED BUDGET AND THE PROPOSED
ADJUSTMENTS. THIS IS AN
OPPORTUNITY FOR US TO ZOOM OUT
AND SEE THE BIG PICTURE FROM THE
START OF THIS BUDGET PROCESS.
ASSESS THE POTENTIAL IMPACTS OF
THE CHOICES TO COME IN A BROADER
SENSE, AND ALSO THIS SETS THE
FOUNDATION AND CONTEXT FOR ALL
THE INDIVIDUAL AND MORE NUANCED
PRESENTATIONS THAT WILL FOLLOW
FOR THE REST OF TODAY AND THE
REMAINDER OF THE WEEK. I WILL
START WITH A HIGH LEVEL BUDGET
SNAPSHOT OF THE 2026 PROPOSED
BUDGET ADJUSTMENTS AND IDENTIFY
THE KEY DRIVERS OF EXPENDITURE
AND REVENUE CHANGES. I WILL
COVER SOME INTERDEPARTMENTAL
ACTIVITIES THAT WERE JUST
MENTIONED, INCLUDING EXPANSION
PROGRAM. I WILL ALSO HIGHLIGHT
POSITION CHANGES . CAPITAL
PROJECT ADJUSTMENTS, AND PROVIDE
SOME ADDITIONAL CONTEXT FOR ALL
OF THESE ITEMS AS WE GO ALONG.
SO WHAT THIS CHARGE SHOWS AT A
VERY HIGH LEVEL IS THAT THE 2026
PROPOSED BUDGET TOTALS $8.9
BILLION ACROSS ALL DEPARTMENTS
AND FUNDS, WHICH IS ABOUT $125
MILLION INCREASE , OR JUST OVER
1% OVER THE ENDORSED BUDGET
LEVELS. AND IN TERMS OF
DEPARTMENTS, THE NET INCREASE ,
THE MOST SIGNIFICANT ONE IS IN
DEPARTMENT OF EDUCATION AND
EARLY LEARNING, HUMAN SERVICES
DEPARTMENT AND SEATTLE POLICE
DEPARTMENT. AND MOST OF THESE
DEPARTMENTAL INCREASES ARE
DIRECTLY RELATED TO THE ADDITION
OF NEW REVENUE . AS MENTIONED
TODAY AND OVER THE RECENT WEEKS.
SO LET'S GET INTO THE REVENUES.
SINCE WE TALKED ABOUT THIS
REVENUE SOURCE, I WILL PROVIDE
ADDITIONAL CONTEXT REGARDING THE
FEPP LEVY RENEWAL, WHICH IS ON
UPCOMING BALLOTS NEXT MONTH. AND
IF APPROVED, A NEW ONE WOULD
INCREASE THE 2026 BUDGET IN
COMPARISON BY $120 MILLION,
WHICH PROBABLY SOUNDS LIKE IT IS
A LITTLE BIT HIGHER THAN WHAT
YOU WOULD EXPECT TO SEE, BECAUSE
IT IS. THE ENDORSED BUDGET
INCLUDES ONLY SIX MONTHS OF
FUNDING FROM THE 2018 LEVY. AND
THAT IS DUE TO HOW THE LEVY
FOLLOWS THE SCHOOL YEAR INSTEAD
OF THE CALENDAR YEAR. SO IF
COMPARING THE '25 ADOPTED
BUDGET IT WOULD REFLECT AN
INCREASE OF ABOUT $70 MILLION.
IT IS AND EXPANDED LEVY. ONE BIG
CHANGE BECAUSE OF THAT IS THAT
THE 25 BUDGET, ADOPTED BUDGET,
INCLUDED FUNDING FROM THE
GENERAL FUND. THE JUMPSTART FUND
AND SWEETENED BEVERAGE TAX IN
2025. AND THE PROPOSED BUDGET
SHIFTS THOSE APPROPRIATIONS TO
THE EXPANDED LEVY AND FREES UP
ABOUT $44 MILLION OF THOSE
REVENUES WHICH WERE APPROPRIATED
FOR OTHER PURPOSES. THE OTHER
TWO TAXES YOU HAVE HEARD A LOT
ABOUT. I WILL KEEP THIS BRIEF.
THE TAX RESTRUCTURE PROPOSALS
ALSO UNDER THE NOVEMBER BALLOT
THAT WOULD PROVIDE AN ESTIMATED
$81 MILLION OF GENERAL FUND
REVENUE . THIS FUNDING HAS BEEN
FULLY APPROPRIATED IN THE
PROPOSED BUDGET TO MITIGATE THE
IMPACTS OF FEDERAL FUNDING
REDUCTIONS AND POLICY CHANGES .
THERE IS ALSO $51 MILLION TO
BACKFILL THE GENERAL FUND
DEFICIT AND ADDRESS THE DEFICIT.
AS WELL AS SOME ADMINISTRATIVE
COSTS, ABOUT $2.4 MILLION AND
FIVE FTE FOR ADMINISTRATIVE COST
TO IMPLEMENT AND OPERATIONALIZE
THE TAX. LASTLY, THE NEW , NEWLY
ADOPTED PUBLIC SAFETY TAX IS
FORECASTED TO GENERATE AN
ADDITIONAL $39 MILLION IN 2026 .
ALL OF WHICH HAS BEEN
APPROPRIATED. THERE IS A TABLE
IN THE MEMO AND ON PAGE 2 THAT
ITEMIZES THOSE APPROPRIATIONS BY
DEPARTMENT , WHETHER IT IS ONE
TIME, ONGOING, POSITIONS
ASSOCIATED WITH THE PROPOSAL
THAT CAPTURES THAT INFORMATION
AS WELL. YOU WILL NOTICE THAT
ABOUT $15 MILLION IS NOT
INCLUDED AS A NEW REQUEST
BECAUSE IT IS BACKFILLING OTHER
GENERAL FUND ITEMS IN THE
BASELINE BUDGET. THE PROPOSED
BUDGET INCLUDES SOME
INTERDEPARTMENTAL CITYWIDE
INITIATIVES THAT ARE NOT
CAPTURED AS A WHOLE AN
INDIVIDUAL APARTMENT --
DEPARTMENT OVERVIEWS. I WILL
WALK YOU THROUGH FIFA WORLD CUP
ACTIVITIES AND THE EXPANSION OF
THE GRAFFITI ABATEMENT PROGRAM.
SO FIFA WORLD CUP WILL BE HERE
IN EIGHT MONTHS OR 241 DAYS, BUT
WHO'S COUNTING? VERY EXCITED.
WE HAVE BEEN SELECTED AS A HOST
CITY FOR SIX OF THE MATCHES. THE
2025-2026 ADOPTED BUDGET
INCLUDED A TOTAL OF $12.2
MILLION DEDICATED TOWARDS
SUPPORTING WORLD CUP ACTIVITIES.
AND THESE FUNDS WERE SET ASIDE
IN A RESERVE TO BE APPROPRIATED
ONCE SPECIFIC NEEDS WERE
IDENTIFIED. AND SO, IN AUGUST OF
THIS YEAR CITY COUNCIL ADOPTED
ORDINANCE 127265 , WHICH
APPROPRIATED $6.2 MILLION FOR
OPERATING CAPITAL EXPENSES
SUPPORT INFRASTRUCTURE, SAFETY
AND EMERGENCY PREPAREDNESS
ACTIVITIES . THE ORDINANCE
PROVIDES MORE DETAILS ON THE
APPROPRIATIONS. YOU CAN READ MY
COLLEAGUE TRACY'S VERY
INFORMATIVE MEMO IN THE LINK.
AND SO, THE 26 PROPOSED BUDGET
APPROPRIATES THE REMAINING
FUNDING, 5.8 MILLION, IN
ADDITION TO SOME REET FUNDING OF
ABOUT $1.6 MILLION IN SEATTLE
CENTERS. THAT IS FOR PEDESTRIAN
SAFETY BARRIERS . I ADDED THIS
TABLE SUMMARY. YOU CAN SEE ALL
THE SPECIFIC ITEMS IN THE
PROPOSED BUDGET. IN ADDITION TO
WHAT YOU SEE HERE, THERE IS
$800,000 OF BASELINE BUDGET TO
CONTINUE THE FUNDING OF THE FIVE
TEMPORARY POSITIONS THROUGH THE
END OF NEXT YEAR. AND THE LAST
THING I WILL SAY ABOUT FIFA IS
THE EXECUTIVE IS CURRENTLY
IDENTIFYING ADDITIONAL COSTS AND
NEGOTIATING AN MOU WITH THE
LOCAL ORGANIZING COMMITTEE,
WHICH WILL BE SUBMITTED TO CITY
COUNCIL FOR APPROVAL . THEIR
ESTIMATING THAT TO BE , AT THE
VERY LATEST, EARLY NEXT YEAR.
ADDITIONAL APPROPRIATION FOR
FIFA RELATED FUNCTIONS WILL BE
INCLUDED IN A SUPPLEMENTAL
APPROPRIATIONS BILL PENDING
THOSE NEGOTIATIONS EARLY NEXT
YEAR. THE CITY 'S GRAFFITI
ABATEMENT PROGRAM, OR THE ONE
SEATTLE GRAFFITI PLAN, IS A
CITYWIDE INITIATIVE FOCUSED ON
GRAFFITI REMOVAL , TARGETED
ENFORCEMENT AND ASSISTANCE OR
IMPACTED BUSINESSES . THERE IS
SOME NEW SUPPORT FOR PUBLIC ART
AND VOLUNTEER CLEANUP EFFORTS.
THE 2026 PROPOSED BUDGET AS
AROUND $2 MILLION AND A SIX FTE,
BRINGING THE TOTAL CITYWIDE
EXPENDITURES FOR GRAFFITI
ABATEMENT TO SIX-POINT $1
MILLION AND 22 POSITIONS. THE
PROPOSED ADJUSTMENTS INCLUDE
FUNDING FOR GRAFFITI CODE
ENFORCEMENT , ABATEMENT AND
PREVENTION EFFORTS IN PARKS,
SDOT AND THE MAYOR'S OFFICE.
THE CHART AT THE BOTTOM
SUMMARIZES THE GRAFFITI
ABATEMENT PROGRAM BASELINE AND
PROPOSE FUNDING IN THE 2026
PROPOSED BUDGET. IT ALSO
INCLUDES A NET NEUTRAL TRANSFER
FROM SPU TO PARSE FOR ALL
EXPENSES THAT WERE PREVIOUSLY
MANAGED BY SPU. THERE'S ALSO A
RELATED ORDINANCE THAT WAS
TRANSMITTED WITH THE BUDGET TO
TRANSFER AUTHORITY TO ENFORCE
THE CITY 'S GRAFFITI NUISANCE
CODE FROM SPU TO PARKS AS WELL.
>> YOU WILL HEAR MORE THIS
AFTERNOON A PRESENTATION
REGARDING PARKS AND RECREATION.
JUST TO HIGHLIGHT IT.
>> CORRECT. THE PROPOSED
ADJUSTMENTS INCLUDE 152 NEW FTE
REQUESTS AND ABOUT 105 OF THOSE
ARE GENERAL FUND SUPPORTED. OF
THOSE POSITIONS, ABOUT ONE THIRD
ARE IN CARE , MOSTLY TO SUPPORT
EXPANSION OF COMMUNITY CRISIS
RESPONDER TEAM AND THE 911 CALL
CENTER. FOLLOWED BY THE SDOT
REQUEST FOR 36 ADDITIONAL FTEs
FOR DOWNTOWN ACTIVATION,
GRAFFITI ABATEMENT THAT WE JUST
WENT OVER, SOUND TRANSIT 3 AND
ENHANCED INSPECTION ENFORCEMENT.
AND MOST OF CITY LIGHTS
INCREASES RELATED TO CAPITAL
PROJECTS . SIMILARLY, FOR PARKS,
WHICH INCLUDES CAPITAL PROJECT
DELIVERY ADDS, RESTROOM CLEANING
AND MAINTENANCE AND PARK RANGER
EXPANSION. PAGES FIVE THROUGH
SEVEN OF THE MEMO GO INTO MORE
DETAIL ON THE POSITION ADDS .
ONE THING I WILL MENTION HERE IS
THAT PERSONNEL COSTS FOR CITY
WORKERS ACROSS ALL FUNDS
COMPRISE APPROXIMATELY ONE THIRD
OF THE OVERALL BUDGET, AND OVER
HALF OF THE $2 BILLION GENERAL
FUND BUDGETS. ALL OF THE
ADDITIONAL FTEs, ALMOST ALL, OUR
REGULAR ONGOING POSITIONS WITH
ONGOING BUDGET IMPACTS . SO
WHILE SOME OF THESE POSITIONS
MAY BE CRITICAL TO DELIVER
SERVICES NEXT YEAR, DUE TO THE
PROJECTED ANIMAL OPERATING
DEFICIT BEGINNING IN 2027, ANY
PROPOSALS THAT ADD ONGOING
POSITIONS THIS YEAR SHOULD BE
CONSIDERED CAREFULLY UNTIL
LONGER-TERM BUDGET
SUSTAINABILITY ISSUES ARE
ADDRESSED. BECAUSE DECISION TO
ADDRESS THE PROJECTED DEFICIT
MAY REQUIRE REDUCING CITY
STAFFING. THE CITY'S 2026- 20
2031 SIX YOUR PROPOSE CAPITAL
IMPROVEMENT PROGRAM OR CIP
TOTALS ONE $.6 BILLION IN 2026,
AN INCREASE OF ABOUT $90 MILLION
OR AROUND 1% OVER THE ENDORSED
LEVELS. AND THE INCREASE IS
PRIMARILY DRIVEN BY DEBT
ADJUSTMENTS. MOST NOTABLY,
SHIFTING THE LITERATURE GENERAL
OBLIGATION BOND FUNDING FOR THE
REDEVELOPMENT OF THE MEMORIAL
STADIUM FROM 2027 TO 2026. DUE
TO SCHEDULE CHANGES. AND SO, THE
SIX YEAR CAP IS $9.4 BILLION AND
ALMOST 70% OF THAT IS UTILITY
FUNDED PROJECTS MANAGED BY CITY
LIGHT AND SEATTLE PUBLIC
UTILITIES. AND MOSTLY FUNDED BY
RATES CHARGED TO CUSTOMERS. THE
SDOT CIP IS ABOUT 20%, WHILE THE
REST OF THE GENERAL GOVERNMENT
DEPARTMENTS WE HAVE PARKS ,
MOSTLY IN PARKS, SOME FAS,
SEATTLE CENTER, I.T. ACCOUNT FOR
THE REMAINING OVER THE SIX
YEARS. IF YOU GO TO THE NEXT
SLIDE , I HAVE SOME PROJECTS
THAT ARE INCREASING
APPROPRIATIONS . THESE ARE
EITHER DUE TO PROGRAM EXPANSION,
SCHEDULE SHIFTS, EMERGENT NEEDS
OR SCOPE CHANGES . ALL OF THESE
ARE HIGHLIGHTED IN THE MEMO AND
DETAILED IN THE INDIVIDUAL
DEPARTMENT CIP SECTIONS OF THE
POLICY CONSIDERATIONS PAPERS.
WITH THAT, I WILL TURN IT OVER
TO MY COLLEAGUE TOM IF THERE ARE
NO QUESTIONS. THAT CONCLUDES THE
HIGH-LEVEL OVERVIEW OF THE
PROPOSED ADJUSTMENTS.
>> THANK YOU. STICK WITH US,
BECAUSE WE HAVE A COUPLE
QUESTIONS. I SEE TOM COMING UP
NOW. COUNCIL PRESIDENT NELSON, I
SEE YOUR HAND UP.
>> THANK YOU. I HAVE A QUESTION
ABOUT THE GRAFFITI ABATEMENT
EXPANSION ON PAGE 7. WHAT DOES ,
WHAT OCCURS IN ARTS ON GRAFFITI.
I ASKED BECAUSE THERE IS AN
INITIATIVE THAT IS HAPPENING IN
PIONEER SQUARE WITH 10 BY 10
FOOT PAINTINGS THAT ARE ACTUALLY
MADE BY HUMANS . YOU CAN SEE
THEM BEING PAINTED. IT WAS
EXPLAINED TO ME AS AN
ANTI-GRAFFITI INITIATIVE. I
DON'T KNOW IF THAT IS , IF
THERE IS ANY CITY FUNDING IN
THAT. MY OTHER QUESTION IS,
WHERE DOES THE CONTRACT WITH
UPLIFT NORTHWEST LIVE ? BECAUSE
THEY DO HAVE THREE CREWS THAT
PERFORM GRAFFITI ABATEMENT. I AM
INTERESTED IN ADDING ANOTHER
CREW.
>> THANK YOU FOR YOUR QUESTION,
COUNCILMEMBER NELSON. THE
CONTRACT WITH UPLIFT NORTHWEST
LIVES AND PARKS . I BELIEVE IT
IS $700,000 CURRENTLY ALLOCATED
FOR THAT. THERE IS ANOTHER
$500,000 FOR CONTRACTING AND
ADDITIONAL GRAFFITI ABATEMENT IN
PARKS AS WELL . AND IN TERMS OF
ARTS, MY UNDERSTANDING IS THAT
THE FUNDING FOR THE ARTS
POSITION IS ACTUALLY REPORTING
TO THE MAYOR'S OFFICE. IT IS IN
THE MAYOR'S OFFICE , THAT
POSITION. HOWEVER, BECAUSE IT IS
JUST PAST THROUGH FUNDING
BECAUSE IT IS GOING THROUGH THE
ADMISSIONS TAX. SO THIS POSITION
IS ACTUALLY IN THE MAYOR'S
OFFICE.
>> AND WHAT DOES IT DO?
>> THE POSITION FOR GRAFFITI
ABATEMENT, I WILL HAVE TO FIND
THE SPECIFICS ON THAT. ONE
SECOND.
>> IF IT IS NOT EASY , JUST TELL
ME LATER.
>> OKAY. I CAN DO THAT. BUT I
BELIEVE THEY WERE DOING EXPANDED
EDUCATION AND GOING TO SCHOOLS
AND TALKING TO STUDENTS ABOUT
EFFORTS , PREVENTION EFFORTS AND
EDUCATIONAL EFFORTS AS WELL. BUT
I WILL SEND YOU THE FULL
DETAILED JOB DESCRIPTION AFTER
THIS.
>> THANK YOU.
>> THANK YOU. ANYTHING ELSE,
COUNCIL PRESIDENT? COLLEAGUES, I
WAS REMINDED AT THE END OF THE
LAST SECTION A BUDGET I AM NOT
USING ROBBER'S RULES
APPROPRIATELY AND CORRECTLY. IT
WAS SUGGESTED I TAKE A CLASS
AGAIN. I AM KNOWINGLY NOT USING
ROBBER UP ITS RULES TO THE
FIRMEST POINT WHERE WE ARE
ALLOWING FOR DISCUSSION TO
HAPPEN. IT FEELS AWKWARD FOR ME
TO SAY, AND NOW TOM, AND NOW
COUNCILMEMBER KETTLE, ET CETERA.
DURING THIS SECTION OF THE
BUDGET, WE WILL HAVE MORE
CONVERSATIONAL TONE AS WE GET
CLOSER TO AMENDMENTS WE WILL
FIRM UP A BIT. WITH THAT,
COUNCILMEMBER KETTLE.
>> THANK YOU, CHAIR STRAUSS. I
FEEL ALL OF THE SUDDEN HAVE TO
BE A LITTLE BIT MORE FORMAL
HERE. I JUST HAD A QUESTION. ONE
OF THESE THINGS, IT IS ALWAYS
ABOUT CONTEXT. OBVIOUSLY, WE ARE
IN THE SECOND YEAR OF THE
BIENNIUM BUDGET. RELATED TO PAST
BUDGETS GOING INTO THE SECOND
YEAR, HOW DO THEY RELATE TO WHAT
WE ARE SEEING THIS YEAR IN TERMS
OF CHANGES. YOU KNOW, IS A
STANDARD OR A GREATER AMOUNT OF
CHANGE? IN TERMS OF WHAT WE ARE
SEEING THIS YEAR COMPARED TO
PAST EXPERIENCE.
>> I DON'T KNOW THERE IS A
SIMPLE ANSWER OR AUTHORITATIVE
ANSWER TO THE QUESTION. THE CITY
HAS HAD A BIENNIAL PROCESS. IT
HAS BEEN MOVED IN RECENT YEARS.
LET ME BACK UP. BIENNIAL PROCESS
IN THE EVERY OTHER YEAR THERE IS
A PROPOSAL THAT INCLUDES AN
ADOPTED AND ENDORSED BUDGET. THE
NOTION IS THAT THE ENDORSED
BUDGET BECOMES THE BASELINE FOR
THE SECOND YEAR AND PROVIDE SOME
LEVEL OF PREDICTABILITY IN TERMS
OF A TWO-YEAR PATH FOR THE CITY
UP HIS FINANCES. OVER THE PAST
FEW YEARS, THAT HAS BEEN AN
EFFORT TO MAKE IT TO MINIMIZE
THE CHANGES IN THE SECOND YEAR.
THERE HAS ACTUALLY BEEN SOME
INTEREST AND DISCUSSION ABOUT
GOING TO A TRUE BIENNIAL PROCESS
SUCH AS THE COUNTY HAS TO
LEGALLY ADOPT BOTH YEARS. THERE
HAS BEEN A PROCESS OF MAKING
AMENDMENTS IN THE SECOND YEAR.
WE HAVE BEEN COLLECTIVELY, IF
YOU WILL, TRY TO MOVE TOWARDS A
RELATIVELY MORE STABLE SECOND
YEAR. IN THAT CONTEXT, THIS IS A
LOT OF CHANGE. THERE ARE OTHER
-- THE ELECTORAL CYCLE PROBABLY
INFORMS THAT REALITY AND MAY
WELL INFORM THAT REALITY GOING
FORWARD. BUT THE GOAL HAD BEEN
TO MOVE EVERMORE TOWARDS A TRUE
BIENNIUM PROCESS. AGAIN, SO
THERE COULD BE PREDICTABILITY.
THAT ALWAYS NEEDS TO BE SOME
RESPONSE TO EVENTS. I'M NOT
TRYING TO PICK ANY SIDE BECAUSE
THAT IS NOT MY BUSINESS. THERE
HAVE BEEN A LOT OF CHANGES AT
THE NATIONAL LEVEL IN THE PAST
NINE MONTHS THAT CERTAINLY WE
ARE GOING TO JUSTIFY THE NUMBER
OF CHANGES. THAT IS NOT THAT IS
REFLECTED IN THE BUDGET AS WELL.
IT HAS BEEN A GOAL. IS NOT ONE
WE HAVE SUCCESSFULLY ACHIEVED.
BUT THERE IS AN ANSWER.
>> CAN I JUST ADD THAT THE
RECOVERY FROM THE PANDEMIC HAS
MAYBE MADE THAT A LITTLE MORE
DIFFICULT IN THE LAST SEVERAL
YEARS TO ACTUALLY PUSH THAT
FORWARD . REALLY, THIS IS A
CHOICE FOR MAYBE THE NEXT BUDGET
WHERE YOU MIGHT HAVE THE
OPPORTUNITY TO PURSUE A TWO-YEAR
APPROPRIATION, LEGAL
APPROPRIATIONS. JUST FOR
ADDITIONAL CONTEXT.
>> THANK YOU, DIRECTOR NOBLE. BY
THE WAY, THANK YOU FOR YOUR
BRIEFING. I REALLY APPRECIATE
IT. I ASKED BECAUSE I THINK THE
CONTEXT IS IMPORTANT. IT ALSO
INFORMS . I WON'T HAVE
ANYTHING, BUT MAYBE A CHALLENGE
TO CHAIR STRAUSS. IF WE ARE
GOING TO GO BIG ON STRUCTURAL
BUDGET REFORM, THAT WOULD BE BIG
TO HAVE A TRUE BIENNIUM BUDGET.
I JUST THINK IT IS IMPORTANT. I
SEE ON TOP OF EVERYTHING ELSE ON
PAGE 3 WE HAVE SOME SIGNIFICANT
CHANGES IN REVENUE. I MEAN, THAT
MIGHT CONTRIBUTE TO THIS BIG
CHANGE WE ARE SEEING THIS YEAR
AS OPPOSED TO OTHER BIENNIUM
BUDGET IS. THANK YOU FOR THAT
CONTEXT. AND THANK YOU FOR
PLACING THAT STRUCTURAL BUDGET
REFORM IDEA IN THE HEAD OF CHAIR
STRAUSS.
>> I WILL ADD THAT, TO MOVE TO A
TRUE BUDGET, THERE MAY OR MAY
NOT NEED TO BE CHANGES AT THE
STATE LEVEL. BUT THE CITY BUDGET
PROCESS AS SET OUT IN STATE LAW.
IT IS MY UNDERSTANDING THAT WAS
ESTABLISHED IN THE EARLY '80s.
REALLY CHANGE THE WAY THE CITY
DOES ITS BUDGET. APPLIES TO
CITIES OF MORE THAN 400,000. SO
US AND NOBODY ELSE. WE HAVE TO
LOOK AT THAT. BUT AGAIN, ANYWAY.
IT IS A BEST PRACTICE, I THINK,
TO MOVE TOWARD SOMETHING MORE
LIKE A BIENNIUM BUDGET WERE
THERE COULD BE MORE PREDICTABLE
AND. IS STILL GIVES THE
OPPORTUNITY FOR CHANGES IN THE
SECOND YEAR. CANDIDLY, HAVING
BEEN THE BUDGET DIRECTOR, THERE
IS A LOT OF HEAT IN THE SENSE OF
AN INEFFICIENT ENGINE ASSOCIATED
WITH PROCESSING A WHOLE SECOND
YEAR OF THE BUDGET PROPOSAL. THE
CITY UP ITS WORKFORCE MIGHT BE
BETTER DEPLOYED TOWARDS ACTUALLY
DELIVERING SERVICES AND POLICY
WORK IN THE LAKE RATHER THAN
BEING FOCUSED ON JUST THE
MACHINATIONS OF THE BUDGET
PROCESS, WHICH ARE SIGNIFICANT.
SIMULTANEOUS BALANCING ACROSS
MULTIPLE FUNDS AND PROCESSING OF
PROPOSED CHANGES. IT'S A LOT OF
WORK AND TIME.
>> WELL SAID. ANYTHING ELSE?
WORDS RIGHT OUT OF MY MOUTH. WE
HAVE BEEN TRYING TO MOVE
INFORMALLY TOWARDS THAT TWO-YEAR
BUDGET PROCESS . LIKE DIRECTOR
NOBLE SAID, IT CAN CREATE A LOT
OF INEFFICIENCIES. WE MADE A LOT
OF CHANGES OVER THE LAST FIVE
YEARS. WE TALKED ABOUT THE
FORECAST. IT IS IMPORTANT WE
MAKE CHANGES ONE AT A TIME SO WE
STILL HAVE A FLOOR TO STAND ON.
WITH THAT, I WILL SAY PUBLIC
HEALTH IS PUBLIC SAFETY. ANY
OTHER QUESTIONS ON THIS
PRESENTATION?
>> I GOT AN UPDATE . THE
GRAFFITI POSITION IS ACTUALLY IN
THE ART OFFICE, NOT THE MAYOR'S
OFFICE. BUT THEY ARE DOING A LOT
OF COORDINATION. THAT IS
CONSISTENT WITH THE USE OF THOSE
DOLLARS FOR ARTS RELATED
ACTIVITIES.
>> THANK YOU. ON SLIDE 10, I
WILL MAKE MY QUICK STATEMENT.
UNDER CITY LIGHT, I'M HAPPY TO
SEE THAT SOME OF THESE ISSUES
ARE BEING ADDRESSED IN THE
CAPITAL IMPROVEMENT PROGRAM .
NOTABLY, AT THE SKAGIT
FACILITIES. I DON'T KNOW IF YOU
RECALL A FEW YEARS AGO THERE WAS
A SOURDOUGH FIRE THAT BURNED UP
INTO THE POWERHOUSES. THE TOWN
OF DIABLO IS CURRENTLY
UNOCCUPIED BECAUSE OF POTENTIAL
LANDSLIDE RISK . AND SO, NOW IS
THE TIME TO MAKE THOSE
IMPROVEMENTS, AS WELL AS THE
GORGE DAM PROVIDES 20% OF OUR
CITY'S ELECTRICITY. NEEDED TO
MAKE SURE THOSE UPGRADES ARE
COMPLETED . I WANT TO THANK THE
DEPARTMENTS AND THE OED FOR
PUTTING PUBLIC RESTROOM AND
RELATED RENOVATIONS IN HERE TO
HELP, AND HOPEFULLY, ADDRESS
SOME OF THE AUDIT REPORT .
ADDITIONALLY, THE GREENLAKE
COMMUNITY CENTER AND EVANS POOL
RENOVATION PROJECT. COLLEAGUES,
YOU MAY OR MAY NOT HAVE KNOWN
THAT EARLIER THIS YEAR IT WAS
DETERMINED THE GREEN LAKE
RENOVATION WOULD HAVE TO HAPPEN
IN TWO PHASES, WHICH WOULD HAVE
DISRUPTED THE PARK FOR A LONGER
DURATION OF TIME, AND POSSIBLY
PUT A LONGER PERIOD OF TIME THAT
MEMBERS OF THE COMMUNITY COULD
NOT ACCESS THE BUILDINGS . BY
THIS SMALL CHANGE, THEY ARE ABLE
TO UNFAZED THE PROJECT, REDUCE
THE CONSTRUCTION IMPACT, GET
COMMUNITY MEMBERS INSIDE THE
DOORS OF THAT COMMUNITY CENTER
FASTER. I WILL JUST NOTE, THE
GREENLAKE COMMUNITY CENTER IS IN
THE HEART OF NORTH SEATTLE.
DISTRICT 6, 5, 4 ALL USE THIS
FACILITY. I WOULD ALMOST SAY
EQUALLY . WITH THAT, COLLEAGUES,
ANY OTHER QUESTIONS ON THIS
PRESENTATION? SEEING NONE. WE
WILL TURN IT OVER TO TOM .
COUNCILMEMBER HOLLINGSWORTH?
SORRY. TURNING IT OVER TO TOM
FOR GENERAL FUND BALANCING
ANALYSIS.
>> OKAY. THERE WE GO. GOOD
MORNING , CHAIR STRAUSS, VICE
CHAIR RIVERA, MEMBERS OF THE
COMMITTEE. TOM MIKE CELL WITH
CENTRAL STAFF. I AM GOING TO
TALK ABOUT THE GENERAL FUND
BALANCING ANALYSIS OF THE
GENERAL FUND IN THE 2026
PROPOSED BUDGET. BEFORE I DIVE
IN, I'M GOING TO SHARE . I HAVE
BEEN DOING THIS TYPE OF WORK FOR
A LONG TIME. THIS TYPE OF STUFF
IS A SECOND LANGUAGE TO ME, AND
I OFTEN FORGET THAT IN RELAYING
INFORMATION. I AM GOING TO DO MY
BEST TO TRY AND TRANSLATE ON THE
FLY TERMS THAT KIND OF ARE
PERHAPS MORE FAMILIAR. WITH THAT
IN MIND, THIS IS BASICALLY THE
FULL PHYSICAL EXAM FOR THE
GENERAL FUND. DURING THE YEAR,
WE DO CHECKUPS ON, KIND OF MAKE
ADJUSTMENTS TO THE HEALTH OF IT.
BUT THEN, EVERY YEAR THERE IS A
NEW BUDGET AND NEW OPPORTUNITY
TO DO ASSESSMENT OF THE PHYSICAL
HEALTH OF THE GENERAL FUND. THAT
IS WHAT THIS IS. THERE IS A
GREAT BIT OF DETAIL IN HERE.
BELIEVE IT OR NOT, THIS IS ME
SHOWING RESTRAINT TRYING TO
FILTER DOWN TO THE MOST SALIENT
DETAILS. AND THEN, I WILL ALSO
SAY THERE IS A DETAILED MEMO
THAT INCLUDES MORE INFORMATION
BEHIND ALL OF THE THINGS WE WILL
DISCUSS THIS MORNING.
>> TOM, SORRY. COLLEAGUES, I
WILL SAY BECAUSE THIS IS SO
MEATY , WE SHOULD DO QUESTIONS
DURING THE PRESENTATION . RAISE
YOUR HAND IF YOU HAVE QUESTIONS.
THANK YOU, TOM.
>> THE OBJECTIVES FOR THIS
PRESENTATION ARE MANY. BUT
IMPORTANT. FIRST, WE ARE GOING
TO REVISIT THE 2025 ADOPTED AND
ENDORSED BUDGET, AND IN
PARTICULAR, THE HEALTH STATUS OF
THE FUND AT THE SAME TIME LAST
YEAR. AFTER THAT, THE FINANCIAL
PLAN WAS ADOPTED . WE'RE GOING
TO UPDATE THE CURRENT YEAR
ACTIVITIES, BOTH THE CHANGES
THAT HAVE BEEN ADOPTED BY
COUNCIL , AS WELL AS THOSE THAT
ARE SUBMITTED WITH THIS BUDGET
PROPOSAL. WE ARE GOING TO LOOK
AT SOME REVENUE CHANGES IN THE
FORECAST THAT KIND OF CAR A
LITTLE BIT OF CHANGE IN COURSE.
AND THEN, GO INTO THE ACTUAL
PROPOSED ADJUSTMENT TO THE 2026
PROPOSED BUDGET REVENUES,
EXPENDITURES , AND RESERVES. AND
ASSESS THE IMPACT ON THE
BALANCING STATUS PER KIND OF THE
FISCAL HEALTH OF THE GENERAL
FUNDS. AS YOU WILL SEE HERE, AND
I BELIEVE DIRECTOR NOBLE ALLUDED
TO, THE PROJECTED DEFICIT. THE
HEALTH STATUS HAS GOTTEN A BIT
WORSE SINCE THE LAST CHECKUP. IN
LIGHT OF THAT, THE CONCLUSION.
THE UNCERTAINTY IN THE ECONOMY,
WE'RE GOING TO REVIEW THE CITY
UP AS PRIMARY PHYSICAL RESERVES
TO SEE WHAT THE FUNDING STATUS
IS ON THOSE VITAL RESOURCES TO
HELP IN A CHALLENGING
ENVIRONMENT. AND THEN, FINALLY,
TOUCH ON THE JUMPSTART PAYROLL
EXPENSE TAX FUND , PARTICULARLY
CONSIDERING THE AUGUST FORECAST
HIT THAT FUND MOST DRASTICALLY.
SO JUST GOING BACK A BIT INTO
TIME, ABOUT A YEAR AGO, TODAY
AFTER THE BUDGET WAS ADOPTED,
THIS WAS KIND OF THE ASSESSMENT
OF THE HEALTH OF THE GENERAL
FUND. WE ARE MAKING PROJECTIONS,
UPDATING PROJECTIONS, MAKING NEW
PROPOSALS, ADOPTING NEW
PROPOSALS BUT IT IS ALWAYS THAT
PROCESS THIS YEAR IS NO
DIFFERENT. WITH THIS TABLE HERE,
IT SHOWS THE CHANGES TO 2025 IN
THE CAR AS WE ARE DRIVING IT.
LAST YEAR AT THIS TIME, 2025 WAS
GOING TO HAVE PROJECTED TO HAVE
AN ENDING BALANCE . THE GENERAL
FUND WAS GOING TO HAVE $125
MILLION OF CASH AT THE END OF
THIS YEAR. THAT IS THEN USED 123
MILLION NEXT YEAR. WELL, THAT
HAS CHANGED SINCE THEN. REALLY,
AT THIS TABLE, IF I COULD GO
DOWN THROUGH ITEM 3 , ALL OF
THOSE REFLECT DECISIONS THAT
HAVE BEEN MADE UP UNTIL THIS..
EXCESS CASH IDENTIFY 2024,
APPROPRIATION BILLS, CHANGES IN
THE REVENUE FORECAST. ALL OF
THOSE TYPES OF THINGS. STARTING
WITH NUMBER FOUR, THESE ARE
PROPOSALS INCLUDED WITH THE
MAYOR'S BUDGET. THERE IS A YEAR
END GRANT. WE DO THREE GRANT
BILLS WHERE NEW EXTERNAL
REVENUES ARE ACCEPTED AND
APPROPRIATED. AND THEN, THERE IS
A YEAR END SUPPLEMENTAL
ADJUSTMENT. THE FINAL SPENDING
CHANGES FOR 2025. IN TOTAL,
THOSE REDUCE THE BALANCE BY $17
MILLION. AND THEN, ANOTHER
THING, AND I WILL COVER THIS IN
A BIT MORE DETAIL LATER, IS
UNDER SPEND. THE 2025 ADOPTED
BUDGET INCLUDED A $10 MILLION
UNDER SPEND. BASICALLY LIKE
SAYING, I AM GOING TO BALANCE MY
FOOD BUDGET, ASSUMING I AM GOING
TO SKIP LUNCH . AND IT WILL ALL
WORK OUT IN THE END. BASED ON
HISTORY , THAT WORKS OUT IN THE
PAST. BUT IT HAS BEEN AN
EMERGING PRACTICE. IN ANY CASE,
THE BUDGET SAYS, $10 MILLION IS
PERHAPS TOO LOW. WE ARE GOING TO
INCREASE IT TO $23 MILLION THIS
YEAR. ALL THOSE CHANGES IN THIS
TABLE SAY WE THOUGHT WE WERE
GOING TO END THE YEAR WITH $120
TRILLION WITH ALL THESE CHANGES,
IT WILL ACTUALLY BE $141
MILLION. SO $18 MILLION MORE OF
BALANCE AT THE END OF 2025 WILL
BE USED IN 2026. THAT IS ONE
TIME MONEY. IT IS LIKE FINDING A
$20 BILL IN YOUR COAT. IT IS
GREAT TO HAVE, BUT IT'S NOT
GOING TO PAY YOUR RENT ON AN
ONGOING BASIS.
>> TOM, AS YOU ARE CONTINUING
FORWARD, I DO APPRECIATE THE
HEALTH CHECK AND ANALYSIS. I
WILL AMEND YOUR CAR ANALYSIS,
THOUGH, TO SAY THAT WE HAVE A
CAR, WE ARE DRIVING IT, AND IT
NEEDS TO BE UPGRADED FROM TIME
TO TIME, BECAUSE WE STARTED IN
1869, THAT KIND OF CAR WOULD BE
REALLY OUTDATED BY NOW. WE WOULD
TURNING IT INTO AN AUTOMATIC AND
MAYBE UPGRADING TO ELECTRIC. WE
DO HAVE A VEHICLE WE ARE
OPERATING THE CITY WITH. AND
SOMETIMES WE NEED TO MAKE
UPGRADES.
>> WELL SAID.
>> -- NOW I WILL DIVE INTO CASH
SORRY. WE FINISH THE LOOK AT
2025 AND WILL SPEND QUITE A BIT
MORE TIME ON 2026. THIS TABLE
HERE IS KIND OF THE STARTING
POINT. REFRESHING BACK TO THE
DISCUSSION AT THE DAIS ABOUT THE
BIENNIAL PROCESS WE HAVE. LAST
YEAR COUNCIL ADOPTED A TWO-YEAR
BUDGET , ADOPTED A 2025 BUDGET
AND ENDORSED A PLAN FOR 2026. IN
THIS PROCESS, THE STARTING POINT
IS THE 2026 PLAN THAT WAS
ENFORCED LAST FALL. THAT IS WHAT
THIS TABLE SHOWS. AGAIN,
ORIGINALLY, WE THOUGHT WE WERE
GOING TO START WITH $123 MILLION
OF FUND BALANCE. 1.9 BILLION OR
SO OF REVENUE GIVING US
RESOURCES A LITTLE OVER $2
BILLION IN THE GENERAL FUND.
EXPENDITURES OF $120 MILLION .
AND THEN, PLANNING RESERVES, AND
THIS IS KIND OF A UNIQUE
CONCEPT. IT IS PART OF THE
BUDGET, BUT IT IS PENCILED IN.
NOT PART OF THE APPROPRIATION
REQUEST, BUT IT REPRESENTS ITEMS
THAT WE DO INTEND TO SPEND MONEY
ON IN THE FUTURE. JUST NOT
PRECISELY KNOWN WELL ENOUGH THAT
THEY CAN BE INCLUDED IN THE
APPROPRIATION. THAT IS TOTAL
USES OF 2. 2.0 $81 BILLION. WE
HAD A ZERO BALANCE , WHICH IS
CONSIDERED A BALANCED BUDGET BY
STATE LAW. FROM THAT STARTING
POINT, IN THE NEXT FEW SLIDES I
WILL COVER HOW THOSE NUMBERS
HAVE CHANGED IN THE PROPOSED
BUDGET, INCLUDING, AS I POINTED
ON THE LAST LIKE, $18 MILLION
MORE OF ONE-TIME CASH AVAILABLE.
THE AUGUST FORECAST . A LITTLE
BIT MORE MONEY TO ALLOCATE. THE
BASELINE TECHNICAL CHANGES .
THEN I'M GOING TO SPEND A BIT
MORE TIME ON SOME OF THESE NEW
REVENUE PROPOSALS THAT HAVE BEEN
CONSIDERED DURING THE YEAR , AND
MORE RECENTLY, THIS WEEK. I WILL
THEN FACTOR IN THE MAYOR'S THAT
NEW SPENDING PROPOSALS BASICALLY
COVER HOW ALL THAT ENDS UP WITH
A NEW HIRE BALANCED BUDGET. NOT
GOING TO SPEND A GREAT DEAL BUT
OF TIME ON THIS SLIDE. THIS IS
KIND OF THE BASELINE TECHNICAL
ADJUSTMENTS. BASICALLY UPDATING
THINGS FOR INFLATION AND CENTRAL
COSTS. THE COSTS OF INTERNAL
SERVICES PROVIDED WITHIN THE
CITY DECREASE. THAT WAS ACTUALLY
FAVORABLE. DECREASE TOTAL
SPENDING BY ABOUT $5 MILLION IN
THE GENERAL FUND. THE PENCILED
IN PLANNING ESTIMATE, I KIND OF
REFER TO IT AS A PLACEHOLDER
AMOUNT BETTER THAN A RESERVE. IN
RESERVE TO ME IS MONEY WE HOLD
IN THE CASE OF AN EMERGENCY. THE
PLANNING RESERVES ARE DEFINITELY
MONEY THAT WE, AS A CITY, INTEND
TO SPEND IN THE FUTURE. BUT
THOSE ESTIMATES WENT UP BY $2
MILLION IN THE PROPOSAL. THE
AUGUST FORECAST, I WAS MISTAKEN,
IT ACTUALLY DECREASED REVENUE.
THAT DECREASE REVENUE BITE 6.8
MILLION. WILL GET AN UPDATE AS
SOON AS NEXT WEEK TO THAT. IT IS
WORTH NOTING THE GROWTH IS 2.2%,
SLIGHTLY LACKING INFLATION. NOT
EXACTLY A GREAT SIGN. THAT
INDICATES LOSS OF REVENUE BASE.
>> THAT UNTO ITSELF GRADES A BIT
OF A STRUCTURAL CHALLENGE TO THE
CITY. BASIC EXPENDITURES ARE
USUALLY GROWING FASTER THAN THE
REVENUE. AS THE ECONOMY HAS
SLOWED, THAT IS A DYNAMIC OF
FAMILIAR TO US. BUT IT IS OUR
REALITY, AT LEAST FOR THE TIME
BEING.
>> INDEED. ALL THOSE KIND OF
TECHNICAL CHANGES, GET, COST OF
DOING BUSINESS TYPE STUFF. IT
REDUCES THAT BALANCE NUMBER BY
$4 MILLION. SO WE SAY , THE LAST
LIKE, THE END OF 2025 WAS ABOUT
$18 MILLION OF COUCH CUSHION
MONEY, THAT GOES DOWN TO $13.7
MILLION. BUT I WILL POINT OUT,
AND YOU WILL SEE LATER, THAT
DOESN'T INCLUDE THE IMPACT OF
THE PAYROLL EXPENSE TAX. THAT
WAS SOMETHING THAT GOT A
SIGNIFICANT DOWNGRADE IN THE
LAST FORECAST IT IS IN A
SEPARATE FUND NOT PART OF THE
GENERAL FUND. AS WE WILL
DISCUSS, THEY ARE INTERRELATED
WITH HOW THE CITY DOES BUSINESS,
PARTICULARLY WITHIN THE GENERAL
FUND. THIS NUMBER, WHICH IS
FRANKLY POSITIVE, DOESN'T
INCLUDE THE IMPACT.
>> THIS -- WE DESCRIBED BEFORE
THE BIENNIAL PROCESS AND
ENDORSED BUDGET. THIS IS A KEY
STEP . WHAT IS DESCRIBED IS THAT
WE HAVE TAKEN THE ENDORSED
BUDGET AND MADE TECHNICAL
CORRECTIONS. BUT IT IS VERY MUCH
THE STARTING POINT. WE CAN'T
JUST LOOK IT LAST YEAR. CAUSE
INFLATION HAS GONE UP. ABSOLUTE
START WITH THE ENDORSED BUDGET
AS THE BASELINE. WE USE THAT
PHRASE. AND THEN MAKE CHANGES.
IF ALL WE ARE GOING TO DO IS
STICK TO THE ENDORSEMENT, WHAT
ARE WE GOING TO TAKE TO DO THAT?
AND THAT IS THE FIRST STEP.
>> EXACTLY. MOVIE TO WHERE WE
WILL SPEND A BIT MORE TIME. THIS
STEP , STEP TWO, THERE WAS A LOT
OF GOOD ACTIVITY DURING THE YEAR
WITH REGARDS TO REVENUE
PROPOSALS. THIS SLIDE BUILDS
THOSE IN IN A SEQUENTIAL MANNER.
THAT IS THE APPROACH I'M
TAKING. I'M TAKING THEM IN
SEQUENCE TO WHICH THEY WERE
CONSIDERED AND ADOPTED BY
COUNCIL. YOU COULD TAKE A
DIFFERENT APPROACH. THAT IS THE
APPROACH I AM USING. THE
PROPOSED STARTING BALANCE IS NOW
$140 MILLION FOR 2026. IT
REFLECTS THAT BETTER-THAN-EXPECT
ED ACTIVITY IN 2025. AND THEN,
--
>> AGAIN, THE PROPOSED STARTING
BALANCE FOR 26 WAS IN ZERO. WE
SHOWED YOU THAT PREVIOUSLY. IT
WAS NORTH OF 125. THAT WASN'T A
SURPRISE. THE WHOLE BUDGET WAS
BASED ON THE IDEA THAT WE WOULD
CARRY A SIGNIFICANT BALANCE INTO
26 AND SPEND IT DOWN . AS TOM
HAS IDENTIFIED, IT ENDED UP
BEING A LITTLE BIT BETTER AS WE
STARTED. BUT AS HE WILL NOW SAY,
THERE WERE A NUMBER OF OFFSETS.
I'M SORRY.
>> I APPRECIATE IT. THAT GIVES
ME THE CHANCE TO TELL YOU
SOMETHING I WANTED TO TELL YOU
FROM THE BEGINNING. THE MOST
IMPORTANT WAY TO READ THIS
SLIDE. THERE ARE TWO COLUMNS ON
THE FAR RIGHT. THE BALANCING
IMPACT AND THE CUMULATIVE
RUNNING BALANCE. YOU CAN SEE HOW
THESE CHANGES WITH EACH TAX
PROPOSAL HAS A BALANCING IMPACT
EITHER POSITIVE OR NEGATIVE. THE
NEW REVENUE MINUS EXPENSES IS
EITHER POSITIVE OR NEGATIVE OR
ZERO . AND THEN, WHAT IMPACT
THAT HAS ON THAT $140 MILLION
STARTING NUMBER. IT IS IMPORTANT
TO SEE HOW THE BALANCING STATUS
OF THE GENERAL FUND CHANGES WITH
EACH OF THESE INCREMENTAL
PROPOSALS. AND SO, KIND OF
CATCHING UP TO THE BASELINE
NUMBERS. WE DISCUSSED IN THE
PRIOR SLIDE THAT THE NEW
BASELINE BALANCE WAS $13.7
MILLION POSITIVE. MISCELLANEOUS
OPERATING REVENUE ADJUSTMENTS,
MINOR ADJUSTMENTS, TAKE ABOUT
$1.6 MILLION OUT ON AN ONGOING
BASIS. A FAIRLY LIGHT TOUCH.
STILL FULL $.1 MILLION POSITIVE
BALANCE. AND SO, THE NEXT LINE
IS REDUCE THE PAYROLL EXPENSE
TAX TRANSFER TO THE GENERAL
FUND. IN THE ENDORSED BUDGET,
THERE WAS ABOUT $265 MILLION
TRANSFERRED IN FROM THE
JUMPSTART PAYROLL EXPENSE FUND
TO THE GENERAL FUND FOR REVENUE
BACKFILL. THAT IS A TRANSFER OF
MONIES TO KEEP THE GENERAL FUND
LIGHTS ON. WE LEARNED IN AUGUST
THAT THE FORECAST IS DOWNGRADED
BY ABOUT $78 MILLION PER YEAR.
THAT PUT THE JUMPSTART FUND IN
THE HOLE. THE JUMPSTART FUND NOT
ONLY SUPPORTS THIS TRANSFER %O
THE GENERAL FUND, BUT ALSO
PROGRAMS IT DIRECTLY FUNDED ON
THE PAYROLL EXPENSE TAX FUND.
THIS ADJUSTMENT HERE IN THE
PROPOSED BUDGET SAYS JUMPSTART
FUND IS KIND OF DOWN, IN THE RED
. IN ORDER TO KEEP THOSE
PROGRAMS GOING , WE'RE GOING TO
REDUCE THE TRANSFER TO THE
GENERAL FUND. THAT IS WHAT IS
REFLECTED HERE. AS YOU CAN SEE,
REDUCING THE TRANSFER IN ON AN
ONGOING BASIS BRINGS VACUUM WITH
THE BALANCING IMPACT TO $65
MILLION. THAT PUTS THE GENERAL
FUND, AT LEAST IN THIS POINT OF
THE BATTING ORDER, AT A BALANCE.
>> A LITTLE BIT OF NARRATIVE TO
THIS TO HIGHLIGHT WOULD'VE
HAPPENED. WE HAD AN ENDORSED
BUDGET FOR 2026 . ALL SEEMED
RELATIVELY WELL. THE TECHNICAL
CHANGES WARRANT THAT LARGE. WITH
THE REVENUE FORECAST, IT HAD A
SMALL IMPACT ON THE GENERAL
FUND, BUT A VERY BIG IMPACT ON
THE JUMPSTART FUND. SO THE
CHALLENGE THE EXECUTIVE FACED --
2026, WITH THE REDUCTION IN
JUMPSTART REVENUES, 2026 WAS
THROWN OUT OF BALANCE BUT WE HAD
THIS ENDORSED BUDGET AND A PLAN.
WE THOUGHT ACTUALLY IN APRIL AND
IT GOT BETTER IN AUGUST. BUT BY
AUGUST, WE STILL HAD A PROBLEM
THAT WAS MORE FOCUSED ON THE
JUMPSTART SIDE, BUT THE OVERLAP.
SUCH A LARGE TRANSFER. THEY
REALIZED THEY WERE EITHER GOING
TO HAVE TO SIGNIFICANTLY REDUCE
THE DIRECT EXPENDITURES FROM THE
JUMPSTART FUND WITH CITY
ACTIVITIES, REDUCE THAT
TRANSFER. AS YOU WILL SEE,
BECAUSE OF VARIOUS OPTIONS ON
BOTH FUND SWAPPING ANY REVENUES,
THEY REDUCED THE TRANSFER TO
PROTECT THE JUMPSTART FUND, BUT
THEN HAVE A HOLE IN THE GENERAL
FUND, AS YOU CAN SEE. WHEN A
TOTAL OF MORE THAN 60 MILLION.
THAT WAS THE CHALLENGE THE
EXECUTIVE FACED TO REBALANCE THE
ENDORSED BUDGET FOR 2026 . IT
WAS MORE FOCUSED ON HOW TO MAKE
UP FOR THE SHORTFALL IN THE
JUMPSTART SIDE. THAT IS BECAUSE
THE IMPACT ON THE GENERAL FUND.
SORRY AGAIN.
>> ALL GOOD. THAT IS THE STORY
WITH THE JUMPSTART FUND TRANSFER
AND THE IMPACT ON THE BALANCE.
THERE OTHER THINGS THAT
HAPPENED. ONE OF THOSE KEY
THINGS IS THE REVISED FEPP LEVEL
HE. IT ACTUALLY INCLUDES SOME
SHIFTS FROM GENERAL FUND
PROGRAMS TO THE HIGHER LEVEE,
WHICH THEN HELPS THE GENERAL
FUND. AS YOU CAN SEE HERE, THIS
IS NOT EXACTLY A TAX REVENUE
DIRECTLY TO THE GENERAL FUND,
BUT A TAX LEVY TO THE FEPP
LIVING FUND WHICH ENABLES
PROGRAMS TO MOVE OVER TO THAT
NEW FUND. THE IMPACT OF THAT IS
A $27 MILLION REDUCTION IN
GENERAL SPOT FUND SPENDING,
WHICH THEN MAKES THE PROBLEM A
LITTLE BIT BETTER TOO $35
MILLION OR $36 MILLION NEGATIVE
CUMULATIVE BALANCE. NEXT AFTER
THAT, YOU WILL RECALL THERE IS
THE B&O BUSINESS AND OCCUPATION
TAX RESTRUCTURE PARTNER FOR MORE
DETAILED SLIDE ON THIS . AT A
VERY HIGH LEVEL, THAT TAX BRINGS
IN $81 MILLION OF NEW REVENUE.
$28.8 MILLION IS SPENT FOR
SPECIFIC THINGS DEALING WITH
FEDERAL RESPONSE ITEMS . BUT
THEN, THE REMAINDER WAS MADE
AVAILABLE BY ORDINANCE FOR
BACKFILL AND GENERAL FUND
PROGRAMS. AND SO, OF THE KIND OF
PERSPECTIVE AT THIS TABLE, 28 OF
THE 80 WOMEN KNOWN DOLLARS OF
REVENUE, $28 MILLION USED
DIRECTLY FOR THINGS THAT ARE
ITEMIZED, LEAVING $52 MILLION TO
KIND OF DEAL WITH GENERAL FUND
BACKFILL. AFTER YOU LAYER THAT
IN, YOU ARE BACK IN POSITIVE
TERRITORY WITH REGARDS TO THE
GENERAL FUND. A $60 MILLION
POSITIVE NET -- $16 MILLION OF
NET. THE FINAL REVENUE ITEM THAT
CAME INTO PLAY MOST RECENTLY IS
A PUBLIC SAFETY SALES TAX.
ESTIMATED TO GENERATE ABOUT $39
MILLION OF REVENUE TO THE
GENERAL FUND. AS PRESENTED BY
THE EXECUTIVE, THERE ARE ABOUT
24 EAST POINT $7 MILLION OF
DIRECTLY NEW SPENDING ITEMS
AGAINST THAT NEW TAX REVENUE.
THERE IS $15 MILLION , BECAUSE
THERE IS THE ABILITY TO
SUPPLANT. SO WE CAN USE THE
MONEY FOR THINGS THAT ARE
ELIGIBLE WITHIN OUR EXISTING
BUDGET. $15 MILLION OF THAT IS
ASSIGNED TO THOSE EXISTING
PROGRAMS IN THE CARE DEPARTMENT.
BUT BECAUSE IT IS NOT ADDING
SOMETHING NEW, IT HAS A $15
MILLION BALANCING IMPACT. WHEN
YOU LAYER THAT IN, THAT LEAVES
$32 MILLION OF ADDITIONAL
GENERAL FUND BALANCE THAT IS
THEN ALLOCATED TO NEW SPENDING
IN THE BUDGET. I WILL GET TO
THAT ON THE NEXT SLIDE OR TWO
SLIDES FROM NOW.
>> COLLEAGUES, ANY QUESTIONS AT
THIS TIME?
>> THANK YOU, CHAIR. THANK YOU,
TOM. THANK YOU, DIRECTOR NOBLE
AND YOUR TEAM , EDIN, FOR BEING
HERE TODAY AND TAKING US THROUGH
ALL THESE BUDGET PIECES AS WE
THEN LATER WILL START TO DIG
INTO THE DEPARTMENTS AND THEIR
PARTICULAR BUDGETS. TOM, ON THIS
SLIDE, WE START OFF WITH THE 140
MILLION BUDGET ASSUMPTION . THAT
IS HOW WE'RE GOING TO START THE
26 BUDGET. BUT AFTER ALL THESE
ADJUSTMENTS, WE ARE ACTUALLY
STARTING THE 26 BUDGET WITH 32
MILLION.
>> THANK YOU FOR YOUR QUESTION,
COUNCILMEMBER RIVERA. YES , AND.
SO THIS IS BEFORE OTHER ITEMS
ARE ADDED TO THE BUDGET. WHAT
I'VE DONE HERE IS SHOW YOU
THERE IS SOME DISCRETE REVENUE
PROPOSALS INCLUDED IN THE
BUDGET. SOME OF THEM HAVE
SPENDING ATTACHED TO THEM. SOME
OF THEM DO NOT. THIS IS SAYING
THERE IS A NEW TAX ADDED , A
CERTAIN AMOUNT DIRECTLY ASSIGNED
TO SOME NEW PROGRAM. AND THEN,
THERE IS SOME LEFTOVER. WITH $32
MILLION IS THE LEFTOVER PIECE.
AND THEN, THAT MONEY , PLUS, AS
YOU WILL SEE IN A FEW SLIDES, IS
ADDED TO CUTS THAT ARE PROPOSED
BUDGET TO GENERATE A NET BALANCE
THAT IS THEN SPENT ON NEW
PROGRAMS. IT IS ALL, ULTIMATELY,
SPENT. THIS IS THE SEQUENCE IN
THE ORDER OF THE ANALYSIS TO
SHOW AFTER TAXES WHERE THE
GENERAL FUND BALANCE STANDS.
>> SO THIS IS NOT THE FULL
PICTURE OF THE PROPOSAL YET.
>> CORRECT.
>> BUT IT IS A GOOD -- I MEAN, I
THINK IT IS A HELPFUL WAY TO
LOOK AT THE ACTIONS THAT HAVE
BEEN TAKEN AND WHAT WE HAVE. I
DO NOTE THIS ENDING REVISED
BALANCE IS THE SAME AMOUNT AS
THE PROPOSED SALES TAX. WITHOUT
THE PROPOSED SALES TAX, WOULD WE
HAVE BEEN AT ZERO HERE?
NOTWITHSTANDING WHAT YOU JUST
SAID ABOUT SOME OTHER PIECES
ACTUALLY NOT INCLUDED IN HERE
THAT PAID THE BIGGER PICTURE.
THIS IS A NARROW PICTURE.
>> THE EASIEST WAY TO ANSWER
THAT QUESTION IS TO LOOK AT THE
BALANCE PRIOR TO THE NEW TAX,
$16.4 MILLION. THERE WOULD HAVE
BEEN $16.4 MILLION TO ALLOCATE
TO SOMETHING NEW WITHOUT THE
SALES TAX. THE SALES TAX ADDS
MONEY TO DO ADDITIONAL NEW
THINGS , AND TO GENERATE
ADDITIONAL NET REVENUE. BUT
WITHOUT IT, IT WOULD HAVE BEEN
$16.4 MILLION. BUT INSTEAD OF
ADDING NEW THINGS, COULD YOU
HAVE ALLOCATED THAT 32 MILLION
TOWARD THE STABILIZATION FUND OR
SOME OTHER OF OUR RESERVES ?
>> YES, WE COULD STOP AT THIS 32
AFTER ALL OF THESE TAXES, AND
THEN ALLOCATE THAT. THEN
ALLOCATE THAT TO WHATEVER THE
CHOICES ARE IN THE BUDGET. IF
YOU'RE ASKING THE QUESTION OF,
IF BEFORE THE SALES TAX, IT
WOULD HAVE BEEN $60 MILLION.
I'M DIFFERENTIATING BETWEEN THE
NUMBERS. BUT YEAH, AT THIS.MATT,
IT IS ALL A POLICY CHOICE ON HOW
TO ALLOCATE THAT MONEY.
>> MY LAST QUESTION, IF I MAY,
THE 32 MILLION, IS THAT ONE TIME
OR ONGOING?
>> THIS IS A COMBINATION OF
ONE-TIME MONEY. THE COUCH
CUSHION MONEY I TALKED ABOUT A
$14 MILLION, AND THEN ALL OF
THESE TAXES ARE ONGOING TAXES.
>> COUNCILMEMBER, IF I AM
UNDERSTANDING YOUR LINE OF
THINKING CORRECTLY, THAT LINE
SHOWING THE PUBLIC SAFETY SALES
TAX, IT WAS A POLICY CHOICE TO
IDENTIFY NEW EXPENDITURES OF
THERE. THE ENTIRE 38.9 MILLION
COULD'VE SUPPORTED OTHER PUBLIC
SAFETY. THAT WOULD HAVE HAD A
LARGER BALANCING IMPACT. IT
WOULD RESULT IN MORE GENERAL
FUND RESOURCES AVAILABLE.
>> AND ALSO GO TOWARD THE
PROJECTED DEFICIT IN 2027 BUT IF
WE MADE DIFFERENT POLICY, WE
COULD STILL DO THAT, ACTUALLY,
BECAUSE WE'RE STILL IN THE
BUDGET PROCESS. BUT IF WE MADE
DIFFERENT POLICY CHOICES, THIS
MONEY COULD GO TOWARD THAT
IMPENDING DEFICIT RATHER THAN --
I AM REACTING TO THE NEW
SPENDING THAT THIS IS GOING
TOWARD.
>> YES. THAT IS ESSENTIALLY
CORRECT.
>> JUST TO EMPHASIZE, AS A LEGAL
MATTER, THERE IS NO NON-SUPPLANT
CAUSE -- CLAUSE FOR ELIGIBLE
USES OF THAT TAX . IT WOULD
APPLY TO A NUMBER OF ONGOING
CITY SERVICES. YOU COULD'VE
JUST USED IT FOR EXISTING
SERVICES AND REDUCE THE DEFICIT
ACCORDINGLY.
>> CORRECT. THANK YOU.
>> THANK YOU, COUNCILMEMBER
RIVERA. COUNCILMEMBER KETTLE.
>> THANK YOU, CHAIR. TWO THINGS.
THERE ARE SOME ASSUMPTIONS HERE
WHICH ARE GOING TO GET SETTLED
OUT IN A FEW WEEKS . I JUST
WANTED TO NOTE, BECAUSE YOU
MENTIONED IT CAME UP A COUPLE OF
TIMES, LIKE WITH THE FEPP LEVY
AND SO FORTH. THERE ARE SOME BIG
SWINGS GOING ON WITH THE LEVEE,
B&O AND PUBLIC SAFETY SALES TAX.
TRADITIONALLY, PUBLIC SAFETY HAS
BEEN APPROXIMATELY 50% OF THE
GENERAL FUND. BUT THESE SWINGS,
PARTICULARLY WHEN THROWN IN
COMBINATION WITH THE PARKS,
PARKS LEVY AND THE LIKE, I
DON'T THINK THIS IS A
STRUCTURAL BUDGET REFORM, BUT
STRUCTURAL BUDGET IMPACT. I
THINK WE NEED TO MOVE AWAY,
COLLEAGUES, FROM THE IDEA THE
PUBLIC SAFETY, WHICH IS A BROAD
TERM , IS 50% OF THE GENERAL
FUND. I THINK THAT IS KIND OF AN
ASSUMPTION PEOPLE MADE. WITH
THESE SWINGS, IF THAT NUMBER
SHOWS UP TO BE HIGHER THAN 50%,
YOU SHOULDN'T BE SURPRISED.
NOTED HERE BUT THE FEPP LEVY,
SHIFTING MONIES OUT OF THE
GENERAL FUND INTO THE ,
BASICALLY, TO BE COVERED BY A
LEVY. IS THAT A FAIR STATEMENT
TO MAKE?
>> THE CITY HAS SYSTEMATICALLY
BEEN SHIFTING EXPENDITURES
TRADITIONALLY GENERAL FUND
EXTEND INTEREST TOWARDS THE
LEVEES. NOT ALL THE LEVEES.
HOUSING WAS NEVER GENERAL FUND
EXPENDITURE. MORE WAS EDUCATION.
BUT IF YOU THINK ABOUT THE
LIBRARY, TRANSPORTATION, PARKS
LEVY IS IN PARTICULAR, THOSE ARE
ALL THINGS THAT PREVIOUSLY WERE
MORE DEPENDENT UPON THE GENERAL
FUND. AS THOSE ELEMENTS SHIFT
OFF THE GENERAL FUND, WHAT
REMAINS, THE MIX, THERE IS EVERY
LIKELIHOOD IT HAS CHANGED. THE
THINGS THAT REMAIN IN THE
GENERAL FUND INCLUDE PUBLIC
SAFETY. IT WOULD MAKE SENSE THEY
BECOME AN INCREASING SHARE OF
WHAT IS LEFT, IF YOU WILL, AS WE
IDENTIFY OTHER FUNDING SOURCES,
VOTER APPROVED SOURCES. YOU CAN
TRACE HIM BACK . BUT WE WILL
LEAVE THAT FOR ANOTHER DAY.
>> UNDERSTAND, DIRECTOR NOBLE.
>> OF COURSE, JUST DEWPOINT OUT,
WE ARE TALKING ABOUT THE GENERAL
FUND HERE. IN TERMS OF THE
ENTIRE CITY BUDGET, THE PUBLIC
SAFETY SHARE OF THE 9 BILLION OR
SO IS MUCH SMALLER. WE ARE
FOCUSING ON THE SMALL
GENERAL-PURPOSE AREA , BUT THAT
IS ALSO SOMETHING TO CONSIDER AS
WELL.
>> THANK YOU. I AM ANTICIPATING
ARGUMENTS BEING MADE, HEY, YOU
ARE ABOVE 50%. I WANTED TO GET
ON THE RECORD THAT THERE ARE
REASONS FOR THIS. SO THAT IS NOT
REALLY A VALID ARGUMENT AGAINST
WHAT IS PUBLIC SAFETY'S GENERAL
FUND PLACE, IF YOU WILL. AGAIN,
NOT STRUCTURAL BUDGET REFORM,
BUT STRUCTURAL BUDGET IMPACTS.
>> IF YOU WOULD INCLUDE PET,
THERE IS AN ARGUMENT WE SHOULD
CONSIDER -- CONSIDER THAT AND
GENERAL FUND TOGETHER. I DON'T
KNOW WHAT THE PERCENTAGES, BUT
PROBABLY CERTAINLY SMALLER THAN
THE GF. BECAUSE PET DOES NOT
SUPPORT PUBLIC SAFETY IN
PARTICULAR. HOW BACK AS THE
DENOMINATOR AS WELL AS
ENUMERATOR TO DIVE INTO MATH .
>> DIRECTOR NOBLE, I THINK
YOU'RE CORRECT. WHAT IS PET
TODAY VERSUS PET OF YESTERDAY
TOO. THERE IS ANOTHER THING
WHERE ARGUMENTS ARE MADE. PET OF
YESTERDAY IS TODAY, BUT IN FACT,
IT IS NOT. AS WE GO THROUGH THE
NUTS AND BOLTS AND BLACK AND
WHITE PIECES, WE SHOULD DEAL
WITH PET OF TODAY IN ADDITION TO
THE POINT I JUST MADE REGARDING
THE GENERAL FUND. THANK YOU,
CHAIR STRAUSS.
>> THANK YOU, COUNCILMEMBER
KETTLE. USING MORE OF A
CONVERSATIONAL INTERPRETATION OF
RULES DURING THE SECTION OF THE
BUDGET. NO PROBLEM CALLING ON
SPEAKERS. ANY OTHER QUESTIONS AT
THIS TIME? SEEING NONE AT THE
MOMENT. BACK TO YOU, TOM.
>> OKAY. I WILL POINT OUT AFTER
THIS STEP WE HAVE $32 MILLION OF
NET GF, WHICH IS IMPORTANT . WE
WILL GET TO THAT IN A COUPLE OF
SLIDES. I WANT TO DIVE A BIT
DEEPER INTO THE B&O TAX PEACE.
AGAIN, PRIOR ITERATIONS IN THE
DIRECTOR'S CUT I HAD ALL THE
SLIDES DETAILED OUT. BUT WE
PROBABLY DON'T NEED TO GO INTO
ALL OF THEM. THIS ONE IS
IMPORTANT. IT KINDA SHOWS
SOMETHING ABOUT HOW WE BUILD
BUDGETS AND HOW THIS PARTICULAR
BUDGET IS BUILT WITH REGARDS TO
THIS SIGNIFICANT NEW TAX
REVENUE. THIS DETAILS OUT THE
ONGOING AND ONE TIMEPIECE.
ONGOING MEANS IT JUST CONTINUES
IN THIS BUDGET AND THE BUDGET
NEXT YEAR AND THE BUDGET AFTER
THAT UNTIL IT GETS CUT. IF IT IS
ONE TIME, IT SAYS IT IS JUST
NEXT YEAR, AND THEN WHEN I
TALKED ABOUT THE BASELINE AND
TECHNICAL CHANGES, THE BASELINE
AND TECHNICAL CHANGE WILL TAKE
IT OUT IN THE FOLLOWING YEAR'S
BUDGET. AND SO, POINTING THAT
OUT BECAUSE THE TAX HAD $81
MILLION AND UP TO $31 MILLION IS
FOR, $30 MILLION, NOT 31, IS
AVAILABLE FOR IN MINISTRY THE
COSTS AND FEDERAL RESPONSE. SO
THE BUDGET, THE PROPOSED BUDGET
INCLUDES OF THAT AMOUNT, $28.8
MILLION FOR THOSE TYPES OF
PURPOSES. WHAT I WANT TO POINT
OUT ON THIS TABLE IS THAT IN THE
BUDGET, $23.6 MILLION OF THE
FEDERAL RESPONSE FUNDING IS ONE
TIME IN 2026. IT WILL NOT
CONTINUE INTO 2027 UNLESS IT
GETS ADDED BACK IN. I WILL POINT
OUT , I MENTIONED THE PLANNING
RESERVES. THEY ARE THE PENCILED
IN PORTION OF THE BUDGET,
PLACEHOLDER OF RESOURCES. THERE
IS AN AMOUNT OF A SIMILAR VALUE
IN 2027 IN THE PLANNING
RESERVES. THAT IS NOT THE SAME
AS BEING PART OF THE BUDGET IN A
VERY SPECIFIC WAY. THIS MEANS
THAT IF THERE ARE RESOURCES
WITHIN THE CONTEXT OF $140
MILLION DEFICIT FOR 2027, MAYBE
THESE PROGRAMS CAN BE FUNDED,
MAYBE SOMETHING ELSE COULD BE
CUT SO THAT THEY COULD BE
FUNDED. BUT THAT IS NOT THE SAME
THING AS SAYING THERE IN THE
BUDGET, AND THEY MIGHT NEED TO
GET CUT IN THE FUTURE. JUST A
STRONGER POSITION TO HAVE
SOMETHING IN THE BASE BUDGET
VERSUS THE PLANNING RESERVES IN
2027. THAT BRINGS THE FIRST
POLICY CONSIDERATION I WOULD
OFFER. GIVEN THE WAY THESE
AMOUNTS ARE STRUCTURED IN THE
2026 BUDGET AS ONE TIME, ONE
OPTION TO MAKE THEM HAVE A
STRONGER POSITION IN THE BASE
BUDGET WOULD BE TO BE SUBMIT A
COST NEUTRAL, REVENUE NEUTRAL,
BUDGET ADJUSTMENT THAT WOULD
MOVE THEM TO ONGOING STATUS IN
THE BUDGET. AND THEN, REMOVE
THAT AMOUNT FROM THE PLACEHOLDER
IN THE PLANNING RESERVES. IN
TERMS OF THE FINANCIAL PLAN, IT
WOULD HAVE ZERO IMPACT. IT WOULD
BE THE EXACT SAME THING. BUT IN
TERMS OF BUDGETING, THEY WOULD
HAVE TO BE CUT IN ORDER TO NOT
CONTINUE IN THE FUTURE VERSUS
BEING ADDED IN IN A RESOURCE
CONSTRAINED ENVIRONMENT.
>> TO FOLLOW ON THAT. TO BE CUT
MEANS THERE WILL BE A
DOCUMENTATION THAT THIS FUNDING
HAS BEEN SHIFTED FROM ONE THING
TO ANOTHER. AS A MATTER OF
PRACTICALITY, WE KNOW HOW MUCH
INTEREST YOU HAVE IN THIS. WE
WOULD TRACK THAT EITHER WAY. BUT
AS GOOD PRACTICE, IF THE INTENT
IS THAT THIS MONEY BE ONGOING,
RATHER IN THIS CASE, THEY DON'T
KNOW HOW THEY WANT TO USE IT,
AND WE DON'T KNOW COLLECTIVELY
HOW WE WANT TO USE THE FEDERAL
BACKFILL IN 2027 BECAUSE THINGS
MIGHT CHANGE. IF WE LABEL THEM
ONGOING, IT WILL BE VERY CLEAR
IN THE DOCUMENTATION ASSOCIATED
WITH THE BUDGET THAT THIS THING
THAT WE HAVE BEEN DOING IS
STOPPING IN THIS OTHER THING IS
BEING PROPOSED AS A NEW ONE. I
DON'T THINK THERE'S ANY RISK
WE WOULD LOSE TRACK OF THAT.
THROUGH OVERALL TRANSPARENCY IN
APPROACH, I THINK THERE'S A LOT
TO BE SAID FOR WHAT TOM HAS
OFFERED UP HERE. IS NOT A
FUNDING CHANGE, JUST A NOTE THAT
WE ARE TRACKING THIS VERY
CAREFULLY. IF IT IS GOING TO
SHIFT, WE WANT TO KNOW VERY
SPECIFICALLY WHY AND HOW. THAT
IS THE INTENT OF THIS, REALLY TO
MAKE SURE IT IS WELL DOCUMENTED.
IF WE DON'T DO THIS, WE WILL
LOSE TRACK, I PROMISE. BUT
AGAIN, AS A MATTER OF THE WAY WE
DO THINGS, IT MAKES SENSE.
>> THANK YOU. COUNCIL PRESIDENT
NELSON.
>> JUST TO BOIL IT DOWN TO
REALLY SIMPLE TERMS, THE SOUNDS
LIKE WHAT I WAS COMPLAINING
ABOUT MY FIRST TWO YEARS IN
OFFICE. BUT I WAS REFERRING TO
THE WAY THAT FEDERAL COVID
RELIEF DOLLARS WERE USED. I
MEAN, THEY WERE ONE-TIME FUNDS,
AND THEN WE CREATED PROGRAMS
THAT WERE ONGOING, AND THEN
THERE WAS CONVERSATION WE MADE .
THAT IS WHAT IS SPURRING THE
CREATION OF THE REVENUE -- I
CAN'T REMEMBER WHAT IT WAS
CALLED. THE COMMITTEE THAT
LOOKED AT ADDITIONAL TAX
RESOURCES TO SUPPORT ONGOING
FUNDING DECISIONS. REGARDLESS OF
WHAT OPTION IS EVENTUALLY
CHOSEN, AND I DO AGREE THAT
OPTION A MAKES SENSE , COUNCIL
IS OFTEN PUT IN THE POSITION OF
HAVING TO CUT FUNDS THAT THE
PUBLIC HAS BUILT -- THAT WE
BUILT EXPECTATION IN THE MINDS
OF THE PUBLIC THAT WILL BE
ONGOING. SO WE HAVE TO THINK
ABOUT THE POSITION WE WILL BE IN
AS THE APPROPRIATORS IN THE
FUTURE. AND SO, IS NOT JUST A
QUESTION OF WHAT COLEMAN GOES
IN. WE ALSO HAVE TO THINK ABOUT
WHAT EXPECTATIONS WE ARE
PRODUCING WITH THESE DECISIONS
RIGHT NOW. THAT'S IT.
>> TOM, DO YOU HAVE ANYTHING TO
SHARE? WAS THAT MORE OF A
STATEMENT?
>> I THINK I HEAR THAT IT IS A
RECOGNITION THAT IT IS EITHER
PLACED ON THE FINANCIAL LEDGER,
STILL IMPORTANT , A COMMITMENT
EITHER WAY WITHIN THE FACT THAT
WE ARE PROJECTING A GENERAL FUND
DEFICIT IN THE FUTURE. AND SO,
IT CAN BE SIMILAR THINGS SAID
ABOUT ANY KIND OF LINE IN THE
BUDGET IN A WAY IN TERMS OF IT
BEING MONEY , THE FINANCIAL PLAN
WE RECEIVED FROM THE EXECUTIVE,
THAT WE CAN'T AFFORD IN TWO
YEARS.
>> COUNCILMEMBER RIVERA .
COUNCIL PRESIDENT NELSON?
>> ONE LAST QUESTION. THE TRUMP
PROOFING PART OF THE B&O
DESIGNED TO HEDGE AGAINST
FEDERAL CUTS , I HAVE MENTIONED
IN A PREVIOUS COMMITTEE MEETING,
I BELIEVE IT WAS PUBLIC SAFETY,
I CAN'T REMEMBER WHICH ONE, WE
DON'T -- WHEN WE GET NEWS THAT
A BIG NUMBER WILL BE CUT AT A
NATIONAL LEVEL, AND I NEED TO
MAKE THE POINT WE NEED TO BREAK
THAT DOWN. WHAT WILL BE THE
IMPACT IN SEATTLE, AND HOW MANY
PEOPLE WILL BE IMPACTED? SO DO
WE HAVE ANY FINER INTEGRATION
/GRADATION OF THE UNDERSTANDING
OF THE LOCAL IMPACTS TO INSTANT
ANTICIPATED FEDERAL CUTS? HAS
ANYBODY RUN THE NUMBERS?
>> I SEE DIRECTOR NOBLE AND --
>> IT IS STILL SO PECK THAT
SPECULATIVE THAT IT IS HARD TO
RUN THE NUMBERS. THE FORM THAT
THE CUTS TAKE ARE AS YET
UNKNOWN. JUST TO GIVE AN
EXAMPLE, IT COULD BE THAT
DOLLARS ARE OFFERED, BUT IN
CONDITIONS CONSISTENT WITH
OVERALL POLICY PERSPECTIVE OF
THE CITY. IN FACT, THAT SEEMS TO
BE THE GOAL AT SOME LEVEL OF 70
FEDERAL ACTIONS. WHETHER THERE
ARE CREATIVE WAYS THAT FEDERAL
DOLLARS COULD BE USED BY US EVEN
FACING THOSE RESTRICTIONS,
UNKNOWN. THE BUDGET OFFICE DID
AT ONE POINT ADD UP HOW MUCH
FEDERAL DOLLARS WERE FLOWING
INTO THE CITY. THE LARGEST
ABSOLUTE TERMS ARE INTO SDOT FOR
CAPITAL FUNDING FOR PROJECTS.
BUT THERE IS CONSIDERABLE MONEY
IN THE HUMAN SERVICES AREA AS
WELL. AT A VERY HIGH LEVEL, THAT
ANALYSIS IS DONE. IN TERMS OF
SPECIFIC RISKS FACED IN THE NEAR
TERM, I THINK IT'S TO REMAIN
SOMEWHAT SPECULATIVE. THAT IS
NOT TO SAY WE SHOULD BE FOCUSED
ON IT.
>> THANK YOU. COUNCILMEMBER
JUAREZ, I SAW YOU HAD A HAND. IT
IS NO LONGER WITH US. QUESTION
IS ANSWERED?
>> KIND OF. THANK YOU. I
ACTUALLY WANT TO THANK COUNCIL
PRESIDENT NELSON. SHE ACTUALLY
KIND OF PUT IT IN MORE CONTEXT,
THE QUESTION I WAS GOING TO ASK.
I MIGHT HAVE A FINER POINT. ON
THE FEDERAL BACKFILL, ON THE
ONGOING -- BECAUSE THE
COMMITMENTS WE MAKE WHEN WE KNOW
WE STILL HAVE THREE YEARS UNDER
THIS ADMINISTRATION. MAYBE
SAYING IT IS SPECULATIVE. IF WE
ARE GOING TO HAVE THE SAME
CONVERSATION NEXT YEAR ABOUT
BACK FILLS, BECAUSE WE HAVE HAD
THIS ADMINISTRATION THAT IS
TAKEN AWAY FEDERAL MONEY FOR
SOME OF OUR KEY SOCIAL SERVICES
SAFETY NETS. SO I THINK YOU
ANSWERED MY QUESTION. I'M NOT
USING A BASEBALL ANALOGY. MAYBE
NOT QUITE GETTING IT OUT THERE.
>> IT SEEMS, MY BEST ANALOGY, IS
THAT WE'RE GOING INTO EXTRA
INNINGS, AND WE DON'T KNOW
WHERE THE FUNDING IS GOING TO
COME FROM.
>> WELL DONE. OKAY. NICE.
>> HOPEFULLY, NOT 15.
>> AT THE RISK OF BELABORING THE
POINT, I DO THINK THE ISSUE IS A
BIT OF MAYBE PEOPLE UNDERSTAND
THE RISK GOING ON IN 2027, BUT
THE PROPOSAL ISN'T SPECIFYING
WHERE THE SPENDING WILL BE IN
2027 YET. BUT THAT ALL HAS AN
IMPACT ON OUR BUDGETING DEFICIT
FOR 2027 AS WELL. I THINK ALL
THOSE THINGS ARE KIND OF COMING
TOGETHER AND SHOWING HOW MUCH
UNCERTAINTY THERE IS IN WHERE WE
ARE GOING.
>> I WILL NOTE THAT THE , EVEN
IN THE ALLOCATIONS AND
APPROPRIATION SHOWN HERE, THERE
IS A RECOGNITION OF UNCERTAINTY.
ALMOST 9 AND HALF MILLION SET
ASIDE FOR SHELTER. EXACTLY WHERE
THAT MONEY WILL GO IS TBD. WE
DON'T KNOW EXACTLY WHAT
CONSTRAINTS WE ARE FACING.
BOTTOM LINE IS THAT WE HAVE TO
BE REACTIVE TO WHAT COMES OUR
WAY, IF YOU WILL.
>> THANK YOU. COUNCILMEMBER
RIVERA, I SEE YOU HAVE YOUR HAND
OF. I WILL SAY JUST IN THE LAST
WEEK I HAVE HEARD OF EVEN MORE
POTENTIAL CUTS THAT COULD AFFECT
US HERE LOCALLY THAT ARE REAL
AND NOT KNOWN IF THEY WILL
HAPPEN QUITE YET.
>> THANK YOU. MY QUESTION IS
ACTUALLY ANOTHER PIECE TO THIS ,
WHICH IS JUST IN TERMS OF THE
POLICY CONSIDERATION . WE HAVE
THIS FEDERAL FUNDING BACKFILL
RESERVE. IF WE MAKE THESE THINGS
ONGOING, THAT IF WE IDENTIFY A
FUTURE FEDERAL BACKFILL NEED, WE
ARE BACK TO THE POSITION WHERE
WE DON'T HAVE MONEY TO DRAW
FROM. WHEREAS, IF WE LEAVE IT AS
ONE TIME, IF WE FEEL NEXT YEAR
THAT THESE ONE-TIME THINGS THIS
YEAR NEED CONTINUED FUNDING, WE
CAN MAKE A DETERMINATION THEN,
BUT THEN WE WILL STILL HAVE, YOU
KNOW, WE WILL BE ABLE TO SEE AT
THAT POINT MAC WHERE WE ARE AND
CAN BETTER ALLOCATE, PERHAPS,
THE FUNDING LATER.
>> YOU RAISE AN INTERESTING
POINT. WANT TO BE CAREFUL ABOUT
THIS. THE ADVANTAGE OF LABELING
THEM ONGOING IS THAT THERE WILL
BE A LOT OF DOCUMENTATION IF
THERE IS SHIFTING. AT THE SAME
TIME, LABELING THEM ONGOING
MIGHT BE MISINTERPRETED AS THE
CITY PROMISING THAT THIS IS
EXACTLY HOW WE WILL ALLOCATE
THIS MONEY FORWARD. IT IS NOT
THE INTENT. WE WOULD WANT TO BE
VERY CAREFUL ABOUT THAT. IN ANY
BUDGET ACTION I THINK WE WOULD
MAKE THAT VERY CLEAR. IT IS NOT
THAT WE ARE COMMITTING TO
ALLOCATING THIS FEDERAL BACKFILL
FOR THIS FORMULA, IF YOU WILL,
BUT RATHER THAT WE ARE
DEDICATING THIS MUCH MONEY TO
FEDERAL BACKFILL AND INTENDING
TO TRACK EXACTLY HOW IT CHANGES.
I THINK THAT WOULD BE AN
IMPORTANT MESSAGE AS PART OF ANY
BUDGET ACTION THAT WOULD PURSUE
THAT WAY. ALSO AN ARGUMENT FOR
NOT LABELING THEM ONGOING,
BECAUSE WE DON'T ACTUALLY KNOW
WHETHER THEY WILL BE. OUR
INTEREST IS MAKING SURE THEY ARE
TRACKED AND THE ANY CHANGES ARE
PROCESSED. WOULDN'T WANT THAT
TO BE INTERPRETED AS A
COMMITMENT WE ARE NECESSARILY
GOING TO FUND THIS WAY. THAT IS
A RISK OF A MISINTERPRETATION. I
THINK WE WANT TO BE CAREFUL
ABOUT HOW WE DID THAT. OR NOT DO
IT IN THE WAY YOU MAY BE
SUGGESTING.
>> THANK YOU, DIRECTOR. CHAIR,
IF I MAY, THE PIECE ABOUT
ONGOING. WE HAVE DONE THAT IN
THE PAST WHERE WE HAVE LABELED
THINGS ONGOING, AND THEN WE ARE
STUCK IN A POSITION OF IT BEING
INTERPRETED, WHETHER OR NOT WE
INTENDED, AS AN ONGOING
COMMITMENT. IF WE NEED TO ADD ,
IF WE NEED TO FIND FUNDING FOR
SOMETHING ELSE, BECOMES AN AD.
THAT THEN INCREASES THE DEFICIT,
VERSES, LET'S LEAVE OURSELVES
SOME FLEXIBILITY, BECAUSE WE
DON'T KNOW WHAT THEY NEED WILL
BE . IT DOESN'T MEAN WE WILL
CONTINUE TO FUND SOME OF THIS IF
IT DOES NEED FUNDING, BUT WE
WILL BE IN A POSITION TO SAY HOW
MUCH IF WE NEED TO ADD SOMETHING
ELSE THAT WE NEED TO FUND.
TOWARD THAT REGARD, WE COULD
LEAVE AS ONE TIME, AND THEN WE
CAN HAVE, I DON'T KNOW, A
RESOLUTION THAT INDICATES WHAT
THINGS WE WOULD LIKE TO SPEND
MONEY ON THAT WE THINK ARE
COMING DOWN THE PIKE AS A WAY TO
PRESERVE INTENT ON COUNCIL 'S
PART AND PRIORITIZE, SINCE WE
DON'T MAKE THE INITIAL
PROPOSAL, THE EXECUTIVE DOES. WE
ARE ABLE TO DO THAT AS WELL.
>> THANK YOU. THERE ARE
POTENTIAL MODIFICATIONS TO THE
OPTIONS.
>> THANK YOU, CHAIR.
>> THANK YOU. COUNCILMEMBER
RINCK.
>> THANK YOU, CHAIR. COLLEAGUES,
I WANTED TO TAKE A MOMENT AS
CHAIR OF THE SELECT COMMITTEE A
FEDERAL ADMINISTRATION AND
POLICY CHANGES TO SPEAK TO MY
UNDERSTANDING OF HOW WE'RE
TRACKING SOME OF THESE FEDERAL
CUTS AND SOME OF THE UNCERTAINTY
I THINK WE ARE ALL TRYING TO
GRAPPLE WITH WHEN IT COMES TO
FEDERAL POLICY CHANGES. HEARING
THE COUNCIL PRESIDENT AT THIS
QUESTION ABOUT UNDERSTANDING
DIRECT IMPACT TO CITY OF SEATTLE
RESIDENTS, I THINK IT IS
IMPORTANT TO NOTE THAT WHEN WE
LOOK AT SOME OF THE FEDERAL
POLICY CHANGES, PARTICULARLY TO
MEDICAID AND CHANGES IN SNAP
ELIGIBILITY ENROLLMENT, TO MY
UNDERSTANDING, CITY OF SEATTLE
HAS HISTORICALLY TRACKED
DIRECTLY HOW MANY RESIDENTS ARE
ACCESSING THOSE BENEFITS. NOT
HAVING THAT AT THE READY, I KNOW
THERE HAS BEEN STATE-LEVEL
ANALYSIS UNDERSTANDING HOW THIS
FEDERAL POLICY CHANGES IMPACT
OUR STATEWIDE ENROLLMENT .
FURTHER ANALYSIS IS NEEDED TO
UNDERSTAND CITY LEVEL. BUT TO MY
UNDERSTANDING, CITY OF SEATTLE
HASN'T TRACKED HOW MANY
RESIDENTS ARE ENROLLED IN SNAP.
I INVITE CENTRAL STAFF TO
CORRECT ME ON THAT. BUT THAT HAS
BEEN SOMETHING WE HAVE HAD TO
LOOK TO SOME OF OUR STATE
PARTNERS TO UNDERSTAND THE
STATEWIDE IMPACT AND MAKE SOME
INFORMED ESTIMATES ON HOW WE CAN
BE ADJUSTING HERE LOCALLY TO
MEET THE NEED. BUT I WANTED TO
ILLUSTRATE ONE EXAMPLE OF SOME
UNCERTAINTY ON THE FEDERAL
FUNDING FRONT I THINK IS
IMPACTING , AT LEAST HOW MY
OFFICE IS THINKING ABOUT THE B&O
TAX AND HOW WE BACKFILL. IS
RELATED TO THE CONTINUUM OF CARE
FUNDING ALLOCATED FROM HUD. THIS
IS $67 MILLION THAT DIRECTLY
BENEFITS OUR REGION BETWEEN
SEATTLE AND KING COUNTY. HUD HAS
NOT RELEASED A NO FOE YET. THEY
HAVE DECLINED TO PUT OUT . IT
HAS NEVER HISTORICALLY BEEN THIS
LATE . OUR LOCAL ARE TRYING TO
FIGURE OUT WHAT EVEN THE PAYAL
OF -- POLICY PRIORITIES WILL BE.
BUT HISTORICALLY OUR REGION HAS
USED TWO THIRDS OF THE DOLLARS
TO FUND CERTAIN THAT PRIMITIVE
-- PERMANENT SUPPORTIVE HOUSING.
THERE HAS BEEN A CHANGE IN
PRIORITIES WHERE WE MAY NOT BE
ABLE TO USE THAT. AND SO,
UNDERSTANDING THAT THERE IS A
MOVING TARGET IN TERMS OF THE
POLICY PRIORITIES REFLECTED IN
THAT , HOW MUCH WILL BE IN IT
AND WHAT THE TURNAROUND TIME
WILL BE. THESE ARE ALL
OUTSTANDING QUESTIONS THAT
CERTAINLY MAKE IT CHALLENGING
FOR US TO PLAN AS A SYSTEM WHEN
TALKING ABOUT HOW WE FUND JUST
THE HOMELESSNESS RESPONSE
SERVICES. THIS IS JUST ONE
EXAMPLE I WANTED TO UPLIFT FOR
TODAY'S DISCUSSION WHEN WE ARE
TALKING ABOUT GRAPPLING WITH
UNCERTAINTY WITH SOME OF THESE
POLICY CHANGES. THANK YOU FOR
ALLOWING ME THE TIME TO EXPAND
ON THAT.
>> THANK YOU, COUNCILMEMBER
RINCK. ANY FURTHER QUESTIONS OR
COMMENTS ON THIS SLIDE? WITH
THAT, WE WILL MOVE FORWARD.
>> NOW I WILL CATCH BACK UP TO
THE FINAL AND THIRD STEP ON THE
REVIEW OF THE PROPOSED BUDGET
ADJUSTMENTS. IF YOU CALL AFTER
THE TAX PROPOSALS, THERE WAS $32
MILLION OF NET GENERAL FUND
AVAILABLE TO ALLOCATE IN THE 26
PROPOSED BUDGET. THE MAYOR ALSO
IN THE BUDGET PROPOSED $41
MILLION OF VARIOUS CHANGES TO
THE BUDGET . THOSE ARE VARIOUS
REDUCTIONS TO THE BUDGET. THAT
CAUSE A TOTAL OF $73 MILLION TO
ADD TWO NEW SPENDING. YOU CAN
KINDA SEE THE BREAKDOWN ON THE
TABLE. $41 MILLION OF
EXPENDITURE IN THE CREASES, $73
MILLION OF EXPENDITURE INCREASES
FOR A NET OF $32 MILLION..NET
TAKES -- THAT NET TAKES UP THE
EXCESS BALANCE AVAILABLE FROM
THE NEW TAXES. THERE IS A GREAT
AMOUNT OF DETAIL BEHIND ALL OF
THESE INDIVIDUAL CUTS AND
INCREASES THAT WILL BE COVERED
IN THE BUDGET CONSIDERATIONS
PEPPERS -- PAPERS. THERE IS A
FULL ATTACHMENT TO THE MEMO.
THAT GIVES YOU A SENSE TO THE
ORDER OF MAGNITUDE OF HOW THE
NEW REVENUE WAS ALLOCATED AND
THE NET OVER AND ABOVE
SPECIFICALLY ALLOCATED NEW
REVENUE USED, PLUS CUTS WERE
USED TO ADD THE BUDGET. THAT IS
ESSENTIALLY THE KIND OF FINAL
STEP AT THAT . THAT USES UP ALL
OF THE RESOURCES MADE AVAILABLE
AND RESULT IN A BALANCED BUDGET.
AND SO, WE'RE GOING TO GO BACK
TO THE CHECKUP. THE PHYSICAL
EXAM. NOW WE ARE GOING TO LOOK
AND SEE WITH THESE PROPOSED
CHANGES , 25 AND 26, HOW IS THE
HEALTH OF THE GENERAL FUND? AS
YOU CAN SEE, THE CHOLESTEROL
NUMBER HAS GOTTEN WORSE. IT WAS
$89 MILLION LAST FALL IN TERMS
OF MORE SPENDING, MORE SPENDING
THAN AVAILABLE REVENUE, AND NOW
IT HAS GROWN ON AVERAGE TO $125
MILLION. ACTUALLY A HIGHER
AMOUNT, $140 MILLION IN 2027.
THAT IS NOT A GREAT PLACE TO BE,
FRANKLY. THERE ARE A FEW THINGS
SPECIFICALLY TO CONSIDER ABOUT
THESE PROJECTIONS. I'M GOING TO
COVER THIS IN MORE DETAIL . I
HAVE KIND OF TOUCHED ON IT
PREVIOUSLY. FOR THE FIRST TIME
SINCE I HAVE BEEN LOOKING AT
THESE PLANS, THE EXECUTIVE IS
NOW INCLUDING A $10 MILLION
UNDER SPEND IN 2027 AND BEYOND.
KIND OF SAYING, WE ARE MAKING
PROJECTIONS FOR THOSE YEARS
ABOUT HOW MUCH WE WILL SPEND,
AND WE THINK WE ARE GOING TO
SPEND $10 MILLION LESS IN EACH
OF THOSE YEARS. AGAIN, THAT IS A
NOVEL APPROACH. I WILL GO INTO A
BIT MORE DETAIL ON THE NEXT FEW
SLIDES. ALSO, WITHIN THE
PLANNING RESERVE, THE
PLACEHOLDERS IN THE FINANCIAL
PLAN FOR PREDICTED AND KNOWN
COMMITMENTS THAT HAVEN'T QUITE
MADE IT INTO THE BUDGET YET,
THERE IS ACTUALLY -- AND THIS
SEEMS TO BE A DEPARTURE, AMOUNTS
INCLUDED FOR PROPOSALS . CURRENT
YEAR PROPOSALS THAT ARE NOT PART
OF CURRENT LAW. SPECIFICALLY,
MONEY ADDED IN THE PROJECTION TO
BUILD OUT ADDITIONAL 150 SHELTER
BEDS IN 2027 AND OPERATE THEM.
THAT IS NOT EXACTLY A CURRENT
BUDGET, CURRENT FORECAST. THAT
IS SORT OF AN ESTIMATE OF WHAT
IT WILL COST TO DO THINGS THAT
THE EXECUTIVE IS KIND OF
COMMITTING TO INFORMALLY RIGHT
NOW. AND SO, THAT IS JUST
SOMETHING TO CONSIDER WITH THESE
NUMBERS. THOSE TWO FACTORS.
PARTICULARLY THE SECOND FACTOR
WITH REGARDS TO WHETHER OR NOT
THIS NUMBER REPRESENTS THE
ACTUAL PROPOSAL BEFORE YOU
TODAY. I AM GOING TO GO INTO
MORE DETAIL ON THE UNDER SPEND
SPECIFICALLY, BECAUSE AS YOU CAN
SEE, WHAT I HAVE GOT HERE IS THE
CHART THAT SHOWS WHEN WE STARTED
USING UNDER SPEND IN THE BUDGET
. WE STARTED USING THEM DURING
THE COVID PANDEMIC. BASICALLY,
THIS IS LIKE SAYING WE -- THE
FOOD BUDGET IS $100 A MONTH, BUT
WE ARE ONLY GOING TO SPEND 90
AND MAKE A COMMITMENT TO THAT.
IN GENERAL, IT IS KIND OF ALSO A
WAY OF SAYING THAT WE HAVE GOOD
FINANCIAL STEWARDSHIP . THE
DEPARTMENTS ARE GOING TO SPEND
LESS EVERY YEAR. WE KNOW THAT TO
BE THE CASE. SO WE ARE GOING TO
KIND OF COUNT ON THAT. AS YOU
CAN SEE, THE ASSUMPTION VERSUS
HOW MUCH ACTUALLY THE UNDER
SPEND WAS HAS BEEN CONSERVATIVE
. ANYWHERE FROM $20-$40 MILLION
OVER AND ABOVE THE UNDER SPEND
ASSUMPTION. BUT AGAIN, IT IS A
NEW THING. THERE'S NOT A
SPECIFIC POLICY. IT IS JUST AN
ADJUSTMENT MADE IN THE FINANCIAL
PLAN. NOW THE FINANCIAL PLANS
STARTING IN 2027 AND BEYOND ARE
STARTING TO INCLUDE THAT
ASSUMPTION AS WELL. I WILL KIND
OF WRAP UP WITH THE ASSESSMENT
OF THE FINANCIAL PLAN. THIS
MIGHT BE KIND OF A WARNING SIGN
THAT WE ARE TRYING EVERY LAST
LITTLE BIT. WE HAVE USE THE
TOOLKIT, AND NOW WE'RE LOOKING
INTO THE JUNK DRAWER AND HAVE A
BUNCH OF EXPIRED COUPONS.
THERE'S NOT REALLY A SOLID
POLICY GOVERNING THAT. YOU WILL
SEE ON THE NEXT SLIDE THAT,
PERHAPS, THERE MIGHT BE SOME
SPACE IN THE AREA OF BUDGET
REFORM TO THINK ABOUT THIS MORE
DELIBERATELY. THAT IS THE NEXT
POLICY CONSIDERATION. WE ARE
INCLUDING UNDER SPEND IN THE
BUDGET AND FINANCIAL
PROJECTIONS. BUT COUNCIL DOES
ADOPT A BUDGET EVERY YEAR. IT
DOES NOT ACTUALLY ADOPT ANYTHING
WITH REGARDS TO THE UNDER SPEND.
THAT IS JUST AN ASSUMPTION BEING
MADE. ONE OPTION WOULD BE TO
FORM SOME SORT OF STUDY
COMMITTEE BETWEEN CENTRAL STAFF
AND CITY FINANCE AND CITY BUDGET
OFFICE TO REVIEW THE PRACTICE IN
CHECK BEST PRACTICES AND AFFIRM
THAT THIS IS THE RIGHT WAY TO DO
BUDGETING, OR PERHAPS TAKE SOME
OTHER ACTION. OF COURSE, THE
OTHER OPTION IS TO JUST CONTINUE
STEADY AS SHE GOES ON GO FORWARD
WITH THE ASSUMPTIONS BEING MADE.
>> AND WITH THAT, WE HAVE A
NUMBER OF HANDS. COUNCIL
PRESIDENT NELSON, FOLLOWED BY
KETTLE AND RIVERA.
>> WHAT YOU ARE IDENTIFYING, CAN
YOU GO BACK TO THE PREVIOUS
SLIDE? NOTE, COLLEAGUES, THERE
IS MORE THAN HALF -- THE
ASSUMPTION IS DOUBLED IN THE
ACTUALITIES. WHAT I AM POINTING
OUT IS THAT THIS SLIDE
REPRESENTS WHAT MOTIVATED ME TO
SUBMIT MY SLIDE LAST YEAR, WHICH
WAS TO LOOK AT THE HISTORICAL
UNDER SPEND AND EXPLAIN THEM.
WHEN YOU GET THE BUDGET DIRECTOR
AND THE OFFICE OF HOUSING
DIRECTOR AT THE TABLE,
EVERYTHING KIND OF MAKES SENSE.
BUT I DO APPRECIATE THAT
COLLEAGUES DID ASK QUESTIONS.
CAN WE BE DOING BETTER? FOLKS,
WE ARE THE APPROPRIATORS. THAT
IS THE DROP OF THE LEGISLATIVE
BODY. WHEN WE SEE THE EXPERIENCE
HERE, WE HAVE TO ASK WHAT
SPENDING DECISIONS WE MADE ARE
NOT BEING FULFILLED. WHAT ARE
THEY NOT SPENDING MONEY ON THAT
WE SAID THEY SHOULD SPEND MONEY
ON? WE COMPLAINED ABOUT WHAT IS
HAPPENING IN D.C., BUT IT IS
HAPPENING RIGHT HERE. SORRY TO
MAKE THIS COMPARISON, BUT THIS
IS SERIOUS. I DO THINK WE SHOULD
DEVELOP POLICIES, AND THEN , I
DON'T KNOW, REASSERT OUR ROLE
AS , YOU KNOW, THE LEGISLATIVE
BODY , THE PEOPLE THAT MAKE THE
BUDGET. AND THEN WE EXPECT TO
SEE OUR BUDGET DECISIONS
FULFILLED. I WILL SIMPLY STOP
THERE. TO PUT IT PLAINLY.
>> THANK YOU. COUNCILMEMBER
KETTLE.
>> THANK YOU, CHAIR. ON THIS ,
YOU KNOW, IN A SENSE, BECAUSE WE
HAVE EMERGENCY STABILIZATION
FUNDS THAT I SUPPORT, AND WE DO
NEED TO REFILL. THE GREAT
RECESSION, THE PANDEMIC, WE NEED
TO BE READY FOR WHATEVER THE
NEXT THING IS. WOULD YOU
CHARACTERIZE THIS POINT IS BEING
KIND OF LIKE AN ANNUAL,
ESSENTIALLY, RESERVE FUND? AS
OPPOSED TO WAITING FOR THE NEXT
BIG THING? LIKE PANDEMIC, GREAT
RECESSION AND SO FORTH?
>> THANK YOU, COUNCILMEMBER
KETTLE. THAT IS A GREAT
QUESTION. WHERE KIND OF ALREADY
COUNTING ON IT. IT IS SORT OF
THE INVERSE THEORY . THE
EMERGENCY FUND AND REVENUE
STABILIZATION FUND, WHICH WILL
COVER IN A BIT. AMOUNT OF CASH
AVAILABLE FOR SPECIFIC PURPOSES.
IN THIS CASE, WE ARE KIND OF
ALREADY COUNTING ON , YOU KNOW,
SPENDING LESS MONEY THAN WE
BUDGETED. WHEN REVENUES DIP, ALL
OF A SUDDEN IT BECOMES LESS
DEPENDING ON VACANCY SAVINGS OR
MAYBE SAVE A LITTLE BIT OF MONEY
ON A CONTRACT, IT BECOMES , NOW
THAT UNDERSTAND HAS TO BE
MATERIALIZED IN A MORE IMMEDIATE
SENSE INTO SOMETHING REAL. IT IS
LESS RELYING ON THE GOOD
FINANCIAL STEWARDSHIP AND A
NATURAL COURSE OF BUSINESS, AND
BECOMES MORE IMMEDIATE. WE ARE
KIND OF PULLING THAT FORWARD A
LITTLE BIT RIGHT NOW, BUT
PARTICULAR WITH REGARDS TO THE
FINANCIAL PLAN, THAT ASSUMPTION,
THAT IT WILL BE STEADY AS SHE
GOES. BECAUSE ONCE IT GETS
CHOPPY, WE NOW HAVE TO KIND OF
GO BACK QUICK. THAT IS HOW I
WOULD CHARACTERIZE. ALMOST AN
INVERSE OF A RESERVE FUND. WE
ARE PAYING OURSELVES FORWARD FOR
THINGS TO GO WELL . AGAIN, IT IS
NOT EXACTLY A BAD PRACTICE ,
BECAUSE WE ARE RECOGNIZING THE
FACT THERE IS EXCESS. WE ARE NOT
LETTING FUNDS SIT IDLE AND
HAVING THE OPPORTUNITY COST OF
THAT. BUT THEN , IT IS A BIT
MORE RISKY, BECAUSE WE ARE
COUNTING ON THAT TO BE THE CASE
GOING FORWARD. AGAIN, IT IS A
CHOICE. I DIDN'T PUT IT ON THE
UNDER SPEND OPTIONS, BUT ALSO IS
AN OPTION , TO THE POINT BY
COUNCIL PRESIDENT, TO MAKE THEM
MORE FIRM. THE UNDER SPEND
ASSUMPTION IS A DIFFICULT
CHOICE, BUT IT COULD BE MADE
MORE AFFIRMATIVE REDUCTION TO
THE BUDGET. THAT IS, IN ESSENCE,
WHAT IT REPRESENTS IN THE
FINANCIAL PLAN. WE'RE GOING TO
SPEND AT THE END OF THE DAY .
WHERE THAT IS IS KIND OF UP TO
THE NATURAL COURSE OF BUSINESS,
OR IT COULD BE MADE MORE
SPECIFIC.
>> FOR THE NARRATIVE. THE OUT
YOUR PLANNING IN THE FINANCIAL
PLAN , IT IS INTENDED AS
INFORMATION TO INFORM YOUR
CURRENT DECISION. HOW DOES WHAT
I DO TODAY AFFECT WHAT I AM
LOOKING AT ? IT IS INHERENTLY
SPECULATIVE. MAKE SOME
ASSUMPTION ABOUT THE GROWTH OF
REVENUE AND EXPENDITURES. TO THE
STAND YOU ARE MINIMIZING THE
POTENTIAL EXPENDITURES IN FUTURE
YEARS, THE MESSAGE YOU'RE
SENDING YOURSELF IS THAT YOU CAN
AFFORD MORE ONGOING EXPENDITURES
NOW. BY REDUCING THIS AND MAKING
THIS $10 MILLION ASSUMPTION, IT
MAKES WHAT OTHERWISE WOULD BE A
$10 MILLION DEFICIT AND MAKES
YOU FEEL BETTER ABOUT ONGOING
COMMITMENTS YOU ARE MAKING
TODAY. AGAIN, FOR THE RECENTLY
DESCRIBED, THERE IS REASON TO
THINK YOU COULD MEET THOSE, BUT
YOU ARE FUNDAMENTALLY REDUCING
YOUR FUTURE FLEXIBILITY. ARE
MAKING AN ONGOING COMMITMENT
THAT IN THE FUTURE YEARS IS
GOING TO BE A COST PRESSURE.
INTERESTINGLY, WE ARE
ACKNOWLEDGING WE WILL UNDERSTAND
RELATIVE TO ADOPTED -- BUT WE
ARE NOT ACKNOWLEDGING THEIR WILL
POTENTIALLY BE EXPENDITURES WE
DON'T ANTICIPATE. WE HAVE
RESORT FOR THOSE, EVERY FOR
REVENUE SHORTFALLS. TO MY MIND,
A LITTLE BIT ONE-SIDED TO FOCUS
ON THE EXPENDITURE SIDE AND
ASSUME WE CAN KEEP THIS UNDER
CONTROL WITHOUT ACKNOWLEDGING
OTHER RISKS. IN ANY CASE, AS
LONG AS YOU'RE CLEAR ABOUT WHAT
THIS IS, CLEARLY, ON AN ONGOING
BASIS, WE TEND TO UNDER SPEND .
THIS IS NOT CREATED A HUGE
PROBLEM, IT IS JUST A QUESTION
OF WHAT LEVEL OF MARGIN WE WANT
TO BE PLANNING AND AT THE END OF
THE DAY, IT COMES DOWN TO HOW
MUCH WE ARE COMFORTABLE
COMMITTING NOW IN TERMS OF THE
IMPLICATIONS IT HAS FOR THE
FUTURE. LIKE WHEN YOU SIGN UP
FOR YOUR OWN MORTGAGE. YOU ARE
TYING YOURSELF TO THE THING IN
THE FUTURE AND HAVE TO DECIDE
WHETHER YOU ARE COMFORTABLE WITH
THAT NUMBER. YOU EXPECT YOUR
INCOME TO GROW OR WHATEVER, BUT
THERE IS A RISK IN ALL OF THAT.
>> THANK YOU. AGAIN, IN CONTEXT,
I COULD IMAGINE PAST YEARS,
DECADES, WHEN WE ARE IN A
RECESSION, THAT THIS PRACTICE
MAY HAVE BEEN USED ANTICIPATING
IF WE ARE OUT OF THE RECESSION.
BUT WE SHOULD REFLECT ON THE
FACT THAT WE ARE NOT IN A
RECESSION. SO NOW I AM THINKING
PUBLIC COMMENTS WERE MADE
REGARDING THE REVENUE WORKING
GROUP. I MENTIONED LAST YEAR
THERE WAS NO COMPANION SPENDING
WORKING GROUP WHEN THAT WAS
DONE. AND HERE WE ARE NOT IN A
RECESSION , AND I UNDERSTAND IT
IS PRUDENT. I UNDERSTAND THOSE
POINTS . BUT IF YOU GO BACK
BIGGER PICTURE, WE ARE NOT IN A
RECESSION. I COULD SEE THIS
HAPPENING IN THOSE KIND OF
PERIODS, BUT HERE WE ARE DOING
IT, AND IT'S A PROBLEM. GOING
BACK TO THE CHAIR'S,. WE ARE
STILL DRIVING THAT CAR, BUT
THANK GOD HAVE THE GAS TANK AS A
RESERVE. BUT OTHERWISE, WE WOULD
BE IN TROUBLE. COULDN'T MAKE IT
TO THE STATION BEFORE. I JUST
WANTED TO HIGHLIGHT THAT. AND
ALSO HIGHLIGHT IT IS PROBABLY
GOOD TO HIGHLIGHT THE FACT WE
ARE NOT IN A RECESSION, BUT YET,
HERE WE ARE. AND THIS HIGHLIGHTS
WHAT HISTORICALLY HAS BEEN TIED
TO RECESSIONS. ONE COULD ARGUE
WE COULD HAVE A FEDERALLY
INDUCED RECESSION TOMORROW, BUT
STILL, IT IS AN INTRIGUING AND
INTERESTING POINT TO REFLECT
UPON AND SAY, HEY, WHERE ARE WE
RIGHT NOW? MORE IMPORTANTLY,
WHERE ARE WE GOING TO BE IN
2027?
>> COUNCILMEMBER RIVERA.
>> THANK YOU, CHAIR. I
APPRECIATE YOUR ANALYSIS, TOM.
AND I APPRECIATE YOUR WAIVING
THE WARNING SIGN HERE . IT SEEMS
LIKE THE 10 MILLION UNDER SPEND
IS NOT IN LINE WITH THE ACTUALS,
AS PER COUNCIL PRESIDENT NELSON
'S COMMENTS. WE HAVE ACTUALLY
HAD MORE THAN 10 MILLION EVERY
YEAR. THIS IS A ONE TIME EVERY
YEAR , THIS ASSUMPTION OF 10
MILLION UNDER SPEND. IT IS NOT
RESERVE, BECAUSE THE EXECUTIVE
IS NOT PROPOSING TO PUT IT INTO
A RESERVE , EITHER THE REVENUE
STABILIZATION FUND OR THE
EMERGENCY REVENUE FUND. IT IS
INTENDED TO BE THIS UNDER SPEND
ASSUMPTION SO WE START THE YEAR
WITH SOMETHING. I THINK MY HUGE
CONCERN HERE IS , TO MY
RECOLLECTION, THIS IS THE FIRST
BUDGET YEAR WHERE I FEEL LIKE
COUNCIL HASN'T HAD FLEXIBILITY
IN THE BUDGET FOR ITS
PRIORITIES. USUALLY THERE IS
SOMETHING , SOME FLEXIBILITY IN
THE BUDGET FOR US TO BE ABLE TO
TAP INTO FOUR PRIORITIES FOR OUR
RESPECTIVE CONSTITUENTS AND
ACROSS THE DISTRICTS. SO I DO
THINK, AND THANK YOU FOR PLATT
FLAGGING THE PIECE ABOUT THE
POLICY CONSIDERATION. PERHAPS WE
SHOULD DO A SLI, STATEMENT OF
LEGISLATIVE INTENT, TO TALK
ABOUT WHAT THAT COULD GO TOWARDS
SO TO NOT MISS AN OPPORTUNITY
FOR COUNCIL TO WEIGH INTO WHAT
THE UNDERSPEND SHOULD GO TO. I
THINK THAT IS IMPORTANT. I THINK
THE BIGGER PICTURE THING HERE IS
THAT, YOU KNOW, THE UNDERSPEND
ASSUMPTION IS RELIED ON THE
BUDGET. AND YET, A HIGHER
DEFICIT IS BEING PROJECTED THEM
WHAT WE ARE ACTUALLY SEEING. IT
IS A PROBLEM. IT IS A STRUCTURAL
PROBLEM MOVING FORWARD, BECAUSE
EVERY YEAR WE HAVE HAD MORE
EXPENDITURES THAN REVENUE. WE
HAVE TO KEEP ADDING SOMETHING IN
ORDER TO STAY BALANCED INSTEAD
OF ACTUALLY LOOKING AT THE
BUDGET AND MAKING CUTS
ACCORDINGLY. I DON'T EVEN KNOW
WHERE WE ARE GOING TO GO FROM
HERE IN TERMS OF ADDING REVENUE
, AND EQUALLY IMPORTANT, BY THE
TIME THE BUDGET GETS TO THIS
BODY, IT MAKES IT REALLY HARD
FOR US TO INCLUDE OUR
CONSTITUENTS' PRIORITIES INTO
THE BUDGET. BOTH A COMMENT, AND
ALSO UNDERSCORING. THANK YOU FOR
WHAT YOU ARE IDENTIFYING HERE,
BECAUSE THIS IS A HUGE POINT .
WHAT YOU ARE IDENTIFYING FOR US
HERE IS REALLY HUGE. WE REALLY
NEED TO TAKE THIS UNDER
ADVISEMENT AND DETERMINE WHAT
OUR RESPONSE WILL BE TO THIS
THAT YOU HAVE UNDERSCORED FOR
US. THANK YOU, CHAIR.
>> THANK YOU, COUNCILMEMBER
RIVERA. COUNCILMEMBER NELSON.
>> I WILL GIVE YOU A REAL-LIFE
EXAMPLE OF WHY THIS IS SO
IMPORTANT. THIS ISN'T JUST 10
MILLION OR 46 MILLION SITTING IN
SOME COLUMN THAT DIDN'T GET
SPENT. WE ALLOCATED, THIS IS A
BUDGET AMENDMENT I PUT FORWARD
LAST YEAR, $400,000 TO EVERGREEN
TREATMENT SERVICES FOR AN
ADDITIONAL MOBILE MEDICATION VAN
TO SERVE PEOPLE IN THE STREETS
WHO ARE SUFFERING FROM OPIOID
USE DISORDER. THEY HAVE NOT
RECEIVED THEIR CHECK YET. I HAVE
BEEN ASKING FOR MONTHS, WHY HAVE
THEY NOT RECEIVED THEIR CHECK?
NOTE TO DIRECTOR KIM. I'M GOING
TO BE ASKING THIS WHEN THE HST
BUDGET DISCUSSION COMES UP. YES,
STEVE WOOLWORTH, I AM ALWAYS
FOLLOWING UP ON THIS. THAT'S
JUST ONE EXAMPLE OF THINGS THAT
AREN'T GETTING DONE IN THE
BUDGET. AND SO, IT IS NOT JUST
THAT THE EXECUTIVE THOUGHT
THINGS WOULD BE MORE EXPENSIVE,
AND THEN IT ENDED UP NOT BEING
AS EXPENSIVE, SO THAT IS WHY WE
HAVE UNDERSPEND. OUR DECISIONS
ARE NOT BEING EFFECTUATED. AND
THAT IS A PROBLEM. INSTEAD OF
JUST A SLI TO GET A GROUP
TOGETHER AND MAKE
RECOMMENDATIONS, WE COULD IMPOSE
PROVISOS THAT REQUIRE THAT OUR
SPECIFIC APPROPRIATIONS ARE
REALIZED IN THE BUDGET. THERE
COULD BE SOMETHING THAT REQUIRES
THAT THE LEGISLATIVE BODY
DECISIONS ARE ACTUALLY
EFFECTUATED . I DO HAVE A
QUESTION. WHAT DO NORMAL CITIES
DO? IS THE UNDERSPEND THAT WE
SEE , THE TRENDS IN
UNDERSTANDING IN SEATTLE, IS
THAT BASICALLY WITHIN THE COURSE
OF NORMAL OPERATIONS AS CITIES
OF OUR SIZE -- WHICH IS NARROW
IT TO THE WEST COAST, PERHAPS. I
WOULD BE INTERESTED IN
UNDERSTANDING PERSPECTIVE ALONG
THOSE LINES.
>> THANK YOU FOR THE QUESTION. I
DON'T KNOW OFF THE TOP OF MY
HEAD THE BENCHMARKING ANALYSIS
TO COMPARE TO OTHER CITIES. BUT
FOR THE GUARD TO THE PRACTICE OF
RELYING ON IT IN THE BUDGET, AND
MY PERSONAL EXPERIENCE, IT IS
NOT GENERALLY SOMETHING THAT IS
DONE. THERE IS KIND OF TO
QUESTIONS THAT CAN BE ASKED. ONE
IS HOW DOES THE ACTUAL SPENDING
COMPARE TO OTHER CITIES, TO OUR
PEERS, AND THEN IS THE PRACTICE
COMMONLY USED. I WILL BACK UP TO
COUNCILMEMBER KETTLE,
OBSERVATION, THIS SEEMS LIKE
SOMETHING THAT YOU DO IN A
RECESSION. THAT IS KIND OF WHAT
I TRIED TO SHOW IN THE TABLE,
THAT WE STARTED DOING THIS
DURING THE COVID RECESSION AND
NOW PERSISTED AS AN ONGOING
PRACTICE. WANTED TO MAKE THAT
POINT. BUT YES, I DON'T KNOW
OFF THE TOP OF MY HEAD THE
COMPARISONS TO WHAT THIS
VARIANCE IS COMPARED TO OTHER
CITIES. BUT WE CAN LOOK INTO
THAT.
>> I THINK WE WOULD BE
DISINGENUOUS IF I DIDN'T HAVE
MY PERSONAL PROFESSIONAL HISTORY
ON THIS POINT. AS BUDGET
DIRECTOR EARLY ON, IN THE
CONTEXT OF FACING LAYOFFS
PROPOSED A BUDGET, ADMITTEDLY,
IN AN UNUSUAL WAY THAT INCLUDED
IN UNDERSPEND. AND IT WAS
EXACTLY THE SCENARIO . THE CITY
WAS FACING A SITUATION OF
LAYOFFS AND THE CONCERN WAS ,
THIS IS A DEEPLY PERSONAL
DESCRIPTION. BASED ON
RECOMMENDING LAYOFFS, BUT
KNOWING THAT WE WERE LIKELY TO
END THE YEAR WITH SUFFICIENT
RESOURCES TO AVOID THOSE
LAYOFFS. ONGOING CITY EMPLOYMENT
IS NOT YOUR RESPONSIBILITY. YOUR
RESPONSIBILITY IS TO THE
CITIZENS OF THE CITY. JUST TO BE
CLEAR. AT THE SAME TIME, IT IS
OBVIOUSLY A LOT OF DISRUPTION. I
WAS WORRIED ABOUT THE DISRUPTION
IN SERVICE. IF YOU LAID FOLKS
OFF, THERE WAS LESS CITY SERVICE
TO BE PROVIDED. IN THAT CONTEXT,
COULDN'T BALANCE THAT WE HAVE
TO MAKE RECOMMENDATIONS TO
BALANCE TO ZERO BY IMPLEMENTING
-- I THINK THE NUMBER WAS 10
MILLION EFFECTIVELY VOID THAT.
IT WAS NOT WELL RECEIVED AT THE
TIME. IN FACT, THE BUDGET WITH
RESPECT TO TO AVOID THAT. BUT IT
WAS MADE IN THAT NARROW CONTEXT
. WE ARE FACING A DIFFERENT SET
OF SITUATIONS HERE , AND
CHALLENGES MORE ON THE
EXPENDITURE SIDE. BUT
NONETHELESS, I THINK IT MAKES
SENSE IN SOME CIRCUMSTANCES, NOT
NECESSARILY ALL. I THINK IT
MAKES A DIFFERENCE TO THINK
ABOUT IT IN THE SHORT RUN VERSUS
THE LONG-TERM PLANNING .
LONG-TERM PLANNING HAS LOTS OF
UNCERTAINTY, BOTH ON THE UPSIDE
AND DOWNSIDE. FOR ONLY TAKING
THE UPSIDE, THE UNDERSPEND PART
OF IT IN LONG-TERM PLANNING, I
THINK YOU ARE FOOLING YOURSELF.
IN THE NEAR TERM, FACING
DIFFICULT DECISIONS, IF YOU'RE
CONFIDENT YOU CAN ACHIEVE THE
UNDERSPEND, MAYBE IT IS NOT
UNREASONABLE. AS YOU LOOK AHEAD,
BUT AGAIN, NEEDS TO BE USED
PRUDENTLY AT A MINIMUM.
>> YOU'RE ABSOLUTELY RIGHT IN
THESE TO BE USED PRUDENTLY
BECAUSE WE THE PUBLIC IS
WONDERING WHAT IS GOING ON. WE
HAVE TO ERR ON THE SIDE OF
TRANSPARENCY HERE. THIS CAN SEEM
LIKE A SHELL GAME WITHIN THE
CONTEXT OF ALSO ESTABLISHING TWO
NEW REVENUE SOURCES OR
INCREASING THE REVENUE SOURCES.
AND SO, WE OWE IT TO THE PUBLIC
TO ACTUALLY REFLECT HOW MUCH
MONEY WE HAVE AND HOW MUCH MONEY
WE ARE SPENDING AND NOT
UNDERSPEND SIMPLY TO BE ABLE TO
THEN MAYBE BE ABLE TO AFFORD
SOMETHING IN THE FUTURE. ANYWAY.
IT IS OUR DUTY TO MAKE SURE WE
ARE REFLECTING REALITY IN OUR
BUDGETS IS WHAT I WILL SAY.
>> THANK YOU.
>> I WANT TO ALSO -- THIS IS
PART OF THE BUDGET
SUSTAINABILITY MESSAGE THAT WE
ARE PUTTING FORWARD. THIS
UNDERSPEND IS SHOWING UP IN THE
FINANCIAL PLAN, AND IT IS HOW WE
GET TO A BALANCED BUDGET. IS
PART OF HOW WE GET TO THE
BALANCE BUDGET IN 2026. WE ARE
FACING ONGOING DEFICITS. IT IS
WORTH THE ATTENTION AND WERE
THINKING ABOUT HOW THIS BODY
DEALS WITH IT, BUT IT IS ALSO
JUST A SMALL PART OF THE OVERALL
DEFICIT ISSUE WE ARE FACING
GOING FORWARD.
>> THANK YOU. COUNCILMEMBER
RIVERA, I SEE YOU HAVE A NEW
HANDPICK WE HAVE EIGHT SLIDES
LEFT IN 24 MINUTES. WE HAVE SET
ON THE SLIDE FOR MAYBE 10 TO 15
MINUTES OR SO. DO YOU NEED
SOMETHING ON THE RECORD? OKAY. I
WILL PASS IT TO YOU. BUT WE HAVE
TO RETURN TO THE SLIDE DECK AND
KEEP MOVING.
>> THANK YOU, CHAIRPERSON THINK
IT IS BECAUSE THIS IS SUCH AN
IMPORTANT POINT. I WILL SAY ON
THE 10 MILLION UNDERSPEND, IT
RELIES, IT IS NOT AN INTENTIONAL
THING THAT WE ARE DOING. WE KNOW
THAT EVERY YEAR WE HAVE
UNDERSPEND BY A CERTAIN AMOUNT.
WE ARE RELYING THAT THAT WILL
CONTINUE ON ITS OWN. IT IS
DIFFERENT FROM SAYING THE ARE
INTENTIONALLY GOING TO
UNDERSPEND BY 10 MILLION EVERY
YEAR, SO WE CAN COUNT ON THAT.
THOSE ARE TWO DIFFERENT THINGS.
SO WE NEED TO THINK ABOUT IF WE
ARE GOING TO RELY ON 10 MILLION
UNDERSPEND, WE SHOULD BE
INTENTIONAL ABOUT IT VERSUS,
LIKE, WE KNOW IT HAS HAPPENED,
SO WE WILL RELY ON IT NATURALLY
HAPPENING. THANK YOU, CHAIR.
>> THANK YOU. BACK TO YOU, TOM.
>> THANK YOU, CHAIR. GOING TO
WRAP UP NOW WITH THE FINAL
DIAGNOSIS FOR THE GENERAL FUND.
THINK ABOUT THE PHYSICAL EXAM
FOR THE GENERAL FUND. WE HAVE
DONE A LOT OF GOOD THINGS TO
HELP THE HEALTH. THERE ARE
THINGS THAT HAVE BEEN DONE OVER
THE LAST FEW YEARS TO KEEP THE
GENERAL FUND IN BALANCE.
INCLUDING EXPANDING THE TRANSFER
FROM THE JUMPSTART PAYROLL
EXPENSE TAX FUND. AS WE
EXPLAINED EARLIER, BUDGET SHIFTS
FROM THE GENERAL FUND TO THE
EXPANDED FEPP B, A NEW
SHARE/WHEEL TAX STRUCTURE THAT
PROVIDES $81 -- $81 THAT $81
MILLION. NEW PUBLIC SAFETY SALES
TAX GENERATES $30 MILLION CASH
$39 MILLION. AS WE DISCUSSED IN
SOME DETAIL, PROJECTING USING
UNDERSPEND IN THE CURRENT BUDGET
AND FUTURE YOUR PROJECTION. WE
HAVE EMPLOYED A LOT OF THESE
TOOLS IN THIS BUDGET, BUT THE
DEFICIT PROJECTION IS GETTING
PAPER GETTING LARGER. THAT IS
LIKE, YOU KNOW, WE HAD THAT
CHOLESTEROL, HIGH CHOLESTEROL
DIAGNOSIS FROM LAST FALL, AND
NOW WE ARE TAKING A STATIN AND
EXERCISING MORE, BUT WE ARE ALSO
EATING RIBEYE STEAK WITH EVERY
SINGLE MEAL. IT'S LIKE, YOU
KNOW, THE HEALTH IS PROJECTED TO
GET WORSE. EVERYTHING IS A
PROJECTION, HOWEVER, WE HAVE
USED A LOT OF THE TOOLS. THERE
AREN'T A WHOLE LOT LEFT IF
UNCERTAINTY REARS ITS HEAD IN
THE FUTURE.
>> I LIKE RIBEYE.
>> OKAY. NOW TURNING TO FISCAL
RESERVES, HAVING TALKED ABOUT
THE PROJECTED DEFICIT AND HOW IT
HAS GROWN TO $140 MILLION IN
2027. WE HAVE TWO FISCAL
RESERVES. EMERGENCY FUND, WHICH
IS FULLY FUNDED BY POLICY. THE
POLICY IS, BASICALLY, 20 $16
INFLATED EACH YEAR BY INFLATION.
IT IS $87.7 MILLION HELD
AVAILABLE FOR UNINSPECTED
EMERGENCIES. IT WAS USED HEAVILY
DURING THE COVID PANDEMIC AND
POLICY DECISIONS AND BUILT BACK
UP TO THE FULL BALANCE. THE
OTHER GENERAL-PURPOSE RESERVE
THAT WE HAVE IS THE REVENUE
STABILIZATION FUND. THAT IS, BY
POLICY, FUNDED TO A BALANCE
EQUAL TO 5% OF GENERAL FUND
TAXES . IN ANY YEAR WHERE THAT
CAP IS NOT MET, THE BUDGET SHALL
INCLUDE A HALF A PERCENT ,
DEPOSIT EQUAL TO HALF A PERCENT
OF GENERAL FUND FORECASTED FOR
THE YEAR. USING THOSE
PARAMETERS, THE DEPOSIT FOR 2026
WOULD BE $7.7 MILLION PER YEAR .
THE TABLE SHOWN BELOW KIND OF
COMPARES THE STANDARD IN
MUNICIPAL CODE WITH THE STANDARD
IN THE PROPOSED BUDGET. AS YOU
WILL SEE, THE REVISED BALANCE AT
THE END, PROJECTED ENDING
BALANCE FOR THIS YEAR, 23 FIVE,
$68.2 MILLION. READING SMC, THE
TRANSFER WOULD BE $7.7 MILLION.
HOWEVER, THE BUDGET INCLUDES A
TRANSFER OF $4.7 MILLION LESS
THAN WHAT CODE WOULD INDICATE.
RATIONALE OR REASON BEHIND THAT
IS THAT IT SEEMS THE PROPOSED
BUDGET BASES THE TRANSFER OFF OF
THE REVENUES EXCLUDING THE NEW
TAXES. AS YOU RECALL, $120
MILLION OF NEW TAX REVENUES
INCLUDED IN THE BUDGET. BY
READING THE REVENUE
STABILIZATION FUND, POLICY WOULD
INDICATE THAT WE ARE NOT AT THE
LEVEL OF TRANSFER OF THAT THAT
WOULD BE INDICATED GIVEN THE NEW
REVENUES.
>> BEFORE YOU MOVE ON, I WILL
SUMMARIZE THE CONVERSATIONS I'VE
HAD WITH BOTH CENTRAL STAFF AND
THE CBO THAT UNDERSTAND HOW OR
WHY THIS HAPPENED. I THINK THEY
-- THE CONSERVATIVE READING OF
THE SMC WITH STATE YOU DON'T
NECESSARILY NEED TO ADD THIS IN
. A COMMON READING OF THE SMC
SAYS YOU WOULD . EITHER WAY, I
THINK IT IS SPLITTING HAIRS .
ALL TO SAY, I WOULD LIKE TO HAVE
THIS FUNDING OF $4.7 MILLION
ADDED TO THE EMERGENCY FUND.
COLLEAGUES, I DON'T KNOW I WILL
NECESSARILY BRING AN AMENDMENT.
OUR ABILITY TO DO SO, TO REFILL
THESE RESERVES, WILL BE BASED ON
ALL THE CONTEXT WE ARE RECEIVING
OVER THE NEXT WEEK FROM THE
REVENUE FORECAST TO ALL OF YOUR
PROPOSALS, ET CETERA. I JUST
WANTED TO PUT THAT ON THE
RECORD. THERE IS NO
MALICIOUSNESS HERE. WE HAVE AN
OPPORTUNITY TO MAKE SOME FIXES.
>> THERE IS A CONSIDERATION .
THE OPTIONS ON THE TABLE WOULD
BE TO ACTUALLY MAKE ADJUSTMENTS
IN THE BUDGET TO FUND IT TO THE
HIGHER LEVEL GIVEN THE
UNCERTAINTY. I WILL GET INTO THE
TERRITORY OF UNDERSPEND. WOULD
COULD ALSO PENCIL IN A HIGHER
UNDERSPEND ASSUMPTION. HISTORY
HAS INDICATED THE UNDERSPEND IS
HIGHER THAN $10 MILLION. THAT IS
WHAT IS IN THE BUDGET RIGHT NOW.
PROPOSED LEGISLATION TO PERHAPS
CLARIFY IF THERE IS ANY
DIFFERENCES IN INTERPRETATION,
CLARIFY THE UNDERSTANDING . AND
OF COURSE, NO CHANGE.
>> THANK YOU FOR TOM, I SHOULD
HAVE WAITED UNTIL NOW TO JUMP
IN. JUST TO SAY, WE WILL BE
TAKING ONE OF THE OPTIONS. IF I
HAD A MAGIC WAND AND ALL THE
MONEY IN THE WORLD, I WOULD
CHOOSE OPTION A. THOSE ARE THE
DECISIONS THAT WILL BECOME TO
OVER THE NEXT FEW WEEKS.
>> OKAY. WE ARE ROUNDING THIRD
BASE. NOW I WILL WRAP UP WITH
KIND OF A DISCUSSION OF THE
JUMPSTART FUND, WHICH LAST YEAR
YOU WILL RECALL THERE WAS A
POLICY CHANGE WITH REGARDS TO
THE JUMPSTART FUND . THEY HAVE
GREATER FLEX ABILITY AROUND THE
USE OF THE FUNDS WHILE RETAINING
THE GUIDANCE AND ORIGINAL FUND
POLICY. ONE OF THE PROVISIONS
THAT WAS INCLUDED IN THAT
ORDINANCE WAS TO KIND OF CLARIFY
THE INTERRELATED NATURE BETWEEN
THE GENERAL FUND AND THE
JUMPSTART FUND. HOW THE
JUMPSTART FUND HAS BUILT ITSELF
TO BE , YOU KNOW, THE REVENUE
HAS BEEN TO A LEVEL WHERE IT CAN
HELP WITH BACKFILL, BUT ALSO
UNDERSTANDING THAT IN CASES
WHERE THERE ARE PRESSURES ON THE
JUMPSTART FUND, THE GENERAL FUND
COULD RETURN THE FAVOR. IN FACT,
AS I MENTIONED EARLIER IN THE
AUGUST FORECAST, THE BIGGEST
OUTBREAK WAS TO THE PAYROLL
EXPENSE TAXES, WHICH GO TO THE
JUMPSTART FUND EACH YEAR. ABOUT
A $78 MILLION HIT. AND SO, AS WE
DISCUSSED, ONE OF THE REVENUE
PROPOSALS WAS TO REDUCE THE
AMOUNT OF MONEY FLOWING FROM THE
JUMPSTART FUND TO THE GENERAL
FUND IN 2026 PROPOSED BUDGET.
BUT I WILL SAY THAT THAT LARGELY
REMOVED THE NEED TO MAKE ANY
LARGE REDUCTIONS TO THE
JUMPSTART FUND. SO THE PROGRAMS
THAT WERE PROPOSED TO BE FUNDED
BY THE JUMPSTART FUND OR KIND OF
LARGELY RETAINED AT THE PRIOR
LEVELS BECAUSE OF THAT SHIFT
WITH THE GENERAL FUND KIND OF
PICKING UP THE BALANCE OF THE
IMPACT OF THE FORECAST
ADJUSTMENT. SO THAT IS GOOD
NEWS. ONE THING I WILL POINT OUT
WITH REGARDS TO RESERVE AND HOW
MUCH MONEY GETS SET ASIDE INTO
THE FUTURE TO DEAL WITH RISKS,
AND HOW THAT MONEY IS SET ASIDE,
I WILL SAY THAT THERE WAS A
PROPOSAL LAST YEAR TO FUND A
JUMPSTART, THE PAYROLL EXPENSE
REVENUE STABILIZATION ACCOUNT ,
FUNDED IN A FOUR-YEAR PERIOD TO
REACH 10% OF PAYROLL EXPENSE TAX
REVENUES OF THE GENERAL FUND. SO
THE PROPOSED BUDGET DOES INCLUDE
-- WELL, THE PROPOSED FINANCIAL
PLAN FOR THE JUMPSTART FUND
INCLUDES $9.7 MILLION. THIS A
KIND OF NOT A BUDGETED AMOUNT,
BUT HE PENCILED IN AN AMOUNT ,
INDICATING GOOD PROGRESS TOWARDS
FUNDING THAT RESERVE. HOWEVER,
GETTING INTO HOW YOU READ THE
ORDINANCE, ONE COULD READ IT TO
SAY THAT THAT AMOUNT SHOULD
ACTUALLY BE PART OF THE BUDGET.
SO AGAIN, POLICY CONSIDERATION
IN THAT REGARD WOULD BE TO MAKE
THE FUNDING LEVEL OF THAT
RESERVE MORE CONCRETE IN THE
BUDGET AND SHIFTED FROM A LINE
IN THE FINANCIAL PLAN INTO AN
APPROPRIATION . IT WOULD HAVE
THE EXACT SAME FISCAL IMPACT BUT
WOULD BE MORE LIKE THE
DIFFERENCE BETWEEN SAYING, YOU
KNOW, I AM SAVING FIVE DOLLARS
THAT IS IN MY POCKET VERSUS
PUTTING FIVE DOLLARS IN THE
BANK.
>> THIS IS A TECHNICAL PIECE.
THE PROPOSED BUDGET , THE MAYOR
, THE PET REVENUES THEY HAVE
APPROPRIATED, NOT ALL OF THEM.
THEY HAVE LEFT 9.7 MILLION NOT
APPROPRIATE IT. IT WON'T BE
SPENT. NOR WILL IT BE SHIFTED TO
A SPECIFIC PLACE WHERE IT LIVES,
IF YOU WILL. THAT IS MORE OF A
TECHNICAL THING, BUT AGAIN, IN
TERMS OF TRANSPARENCY AND
ACCOUNTABILITY, I THINK THERE IS
SOME VALUE IN DOING IT THAT WAY.
IT IS PRECISELY HOW WE DO IT
WITH THE GENERAL FUND. THE
REVENUE STABILIZATION ACCOUNT
WITHIN THE SYSTEM THAT IS
TRACKED. NOT A CRITICAL
DECISION, BUT A GOOD PRACTICE.
>> THANK YOU. AS A REMINDER,
LAST YEAR, THE EXECUTIVE PUT IN
QUITE A BIT OF FUNDING INTO THE
JUMPSTART RESERVE ACCOUNT. WE
USED THAT FUNDING AS A WAY TO
BALANCE A LOT OF THE DIFFERENT
PRIORITIES WE WERE BRINGING
FORWARD . AT THE END OF THE DAY,
WE ADDED POLICIES THAT DIRECTOR
NOBLE MENTIONED, WHICH SET FORTH
THE ALGORITHM FOR THE REVENUE
STABILIZATION ACCOUNT TO BE
REPAID. FROM THERE, THEY HAVE
DONE THIS . WE HAVE GOT THESE
COUPLE OF OPTIONS ON THE TABLE
RIGHT NOW. AT THE END, IN THE
PACKAGE LAST YEAR, WE DID LEAVE
SOME FUNDING IN THE JUMPSTART
STABILIZATION ACCOUNT , AND
ULTIMATELY, AS A BODY, WE
DECIDED TO USE THAT FUNDING FOR
RENTAL ASSISTANCE. JUST AS A
LOOK BACK TO LAST YEAR WHERE WE
WERE WITH THIS ACCOUNT. THANK
YOU, TOM. OVER TO YOU.
>> THANK YOU, CHAIR. I THINK WE
COVERED THE CONSIDERATION HERE.
I BELIEVE THAT IS THE END OF MY
PRESENTATION. HAPPY TO ANSWER
ANY ADDITIONAL QUESTIONS.
>> VERY THOROUGH. I MEAN,
REALLY, TOM. THIS IS AN
IMPRESSIVE ANALYSIS. IT IS A
DENSE BOOK. IT COVERS THE SPAN
OF MANY YEARS , AS YOU
MENTIONED, WITH YOUR ANALOGIES
OF CARS, PLANES, TRAINS AND
BASEBALL. REALLY APPRECIATE ALL
OF YOUR HARD WORK. AND FOR
PUTTING IT IN COMMON LANGUAGE
TERMS FOR THE VIEWING PUBLIC,
AND FOR US. WITH THAT,
COLLEAGUES -- COUNCILMEMBER
JUAREZ.
>> I'M SORRY BUT I WOULD JUST
SAYING, I APPRECIATE THE
ANALOGIES. STOLE MY LINE, MR.
CHAIR.
>> APOLOGIES FOR THAT. I HAVE A
JOKE, BUT IT IS PROBABLY NOT
CORRECT ON THE DAIS TODAY.
COLLEAGUES, ANY QUESTIONS OR
COMMENTS? COUNCILMEMBER RIVERA.
>> THANK YOU, CHAIR. THIS IS
JUST A COMMENT. A NOTE OF
APPRECIATION TO TOM, WHO HAS
DONE SUCH A GREAT JOB OF PUTTING
TOGETHER A MEMO FOR US THAT
REALLY IS VERY TRANSPARENT. IT
IS VERY INFORMATIVE , AND I, FOR
ONE, APPRECIATE IT AS I AM
LOOKING AT THIS BUDGET. ALSO,
THESE ARE REALITIES . WE KEEP
KICKING THE CAN DOWN THE ROAD ,
AND WE HAVE RUN OUT OF -- WE
CANNOT FIND A GAS STATION FOR
MILES. THAT IS MY BEST ATTEMPT
AT AN ANALOGY. AND SO, WE REALLY
DO NEED TO -- THIS IS AN
OPPORTUNITY, AND TOM, I HEAR YOU
SOUNDING THE ALARMS VERY CLEARLY
THAT WE REALLY DO NEED TO LOOK
AT HOW WE ARE GOING TO BE
MANAGING FOR A BUDGET DEFICIT
THAT WE CANNOT GET AWAY -- WE
ARE TRYING TO CHASE, OR RUN AWAY
FROM IT . BUT WE ARE NOT GOING
TO BE ABLE TO. IT IS CATCHING UP
TO US. AND THIS IS A WAKE-UP
CALL. I THOUGHT IT WAS A WAKE-UP
CALL LAST YEAR . THIS REALLY IS
A WAKE-UP CALL. WE NOW HAVE
PASSED TWO TAXES, NEW TAXES, TO
TRY TO AVOID WHAT I THINK WE
NEED TO BE DOING, WHICH IS
TAKING A GOOD HARD LOOK AT THE
BUDGET. I AM HERE TO WORK WITH
YOU ALL TO DO THAT. BUT WE CAN
NO LONGER SUSTAIN WHAT WE HAVE
GOING HERE. I AM DISAPPOINTED, I
WILL SAY, THAT THIS BUDGET , FOR
US TO INCLUDE OUR PARTIES, WE
WILL NOW HAVE TO LOOK AT
REPURPOSE THING FUNDING. THAT IS
NOT A GREAT PLACE TO BE AT. BUT
IT IS THE TRUTH. AND I DO THINK
THAT WE NEED TO MAKE SOME HARD
CHOICES HERE. STARTING WITH THIS
BUDGET. THANK YOU, AGAIN, TOM. I
REALLY APPRECIATE THE
INFORMATION. WE HAVE THE
INFORMATION BY WHICH TO MAKE
DECISIONS. WE JUST NEED TO MAKE
THE HARD WORK OF ACTUALLY TAKING
THOSE AND MAKING THOSE DECISIONS
AND DOING THE HARD WORK BUT IT
IS NOT EASY. BUT IT IS
NECESSARY. THANK YOU.
>> THANK YOU. ANY OTHER
QUESTIONS OR COMMENTS? COUNCIL
PRESIDENT NELSON.
>> THAT IS ESPECIALLY IMPORTANT.
I SECOND THE COMMENTS. THE CASH
COW OVER BUDGET IS THE JUMPSTART
FUND. IT IS, YOU KNOW, WE SEE
WHAT IS HAPPENING IN THE TECH
SECTOR. WE CANNOT DEPEND ON
THAT. I NEED TO REFRESH WHAT
HAPPENED LAST YEAR. I REMEMBER
WE RECEIVED A BUDGET I BELIEVE
HAD 49 MILLION IN NOT ALLOCATED
JUMPSTART FUNDS. IN THE CHAIR'S
PACKAGE SPENT A CERTAIN AMOUNT
OF IT BUT ADDED 15 MILLION TO
THE 2027 DEFICIT . AND THEN,
CAME DOWN TO THE KNOB, AND THEN
WE SPENT THE VERY LAST BIT ON
RENTAL ASSISTANCE. IS THAT A RUN
DOWN? IS THAT A PRETTY ACCURATE
STATEMENT? BECAUSE WE ARE NOT
FACING THE SAME CONDITIONS
ANYMORE. WE WILL NOT HAVE THAT
CUSHION GOING FORWARD. WE COULD
HAVE CONTINUED REDUCTIONS, AS WE
SAW IN APRIL. BEFORE APRIL.
>> YES, COUNCIL PRESIDENT. IN
GENERAL TERMS, THE BUDGET, AS
PROPOSED, I THINK IT WAS ON THE
ORDER OF $40 MILLION OF RESERVED
FUNDS IN THE PAYROLL EXPENSE TAX
FUND, WHICH WERE THEN ALLOCATED
TO OTHER PRIORITIES IN THE
BUDGET. AT THAT TIME, THAT IS
WHEN THE POLICY SHIFTED FROM A
FUNDED IMMEDIATELY TO FUNDED
OVER FOUR YEARS CADENCE. RIGHT
NOW, THE POLICY FOR THE
JUMPSTART EMERGENCY
STABILIZATION RESERVE, I CAN'T
REMEMBER THE EXACT WORDS, BUT
FOR THAT RESERVE IS TO GET , TO
REACH 10%, OVER FOUR YEARS BUT I
DON'T KNOW PRECISE DOLLAR
AMOUNT
>> THINKING THE ACTUAL FINDING
THAT FINAL ENDING BALANCE WITH
$3 MILLION, PERHAPS. THAT IS
GENERALLY CORRECT THAT THERE WAS
A HIGHER , AND THOSE ARE
ALLOCATED. I DO BELIEVE PART OF
IT WAS ALSO THAT WE RECEIVED A
DOWNGRADE IN THE OCTOBER
FORECAST TO BE ADDRESSED AS
WELL. THAT MAY HAVE PLAYED A
PART AS WELL. THAT IS PERHAPS A
GOOD SEGUE TO OFFER WE ARE NOW
GOING TO RECEIVE OUR NEXT
OCTOBER FORECAST NEXT WEEK, AND
ONE CAN ONLY HOPE THAT IT
DOESN'T SET US FURTHER BACK
WITH REGARDS TO THIS.
>> COUNCIL PRESIDENT, ANYTHING
ELSE? THANK YOU, COLLEAGUES.
LAST CALL ON THIS PROCESS ,
GENERAL FUND JUMPSTART, AS WELL
AS INTRODUCTION IN CHECK AS TO
WHERE WE ARE IN THE WHOLE
CALENDAR HERE. THAT WILL WRAP UP
THE MORNING SESSION. WE ARE AT
12:23 P.M. SEVEN MINUTES EARLY.
I APPRECIATE, COLLEAGUES, YOU
HELPING US MANIFEST THE DESTINY
WE ALL WANT, WHICH IS TO WATCH
THE MARINERS WIN ANOTHER GAME
THIS EVENING. WITH THAT, WE ARE
GOING TO BE ON RECESS UNTIL 1:30
P.M. WE ARE GOING TO BE ON
RECESS UNTIL 1:30 P.M. CITY
GRIND IS OPEN FOR ANOTHER 36
MINUTES. LOOKING FORWARD TO
SEEING YOU ALL BACK HERE IN AN
HOUR AND SIX MINUTES. IF THERE
IS NO OBJECTION, WILL BE IN
RECESS PROCURING NO OBJECTION,
WE ARE IN RECESS UNTIL 1:30 P.M.