AND TRIBAL GOVERNMENTS COMMITTEE
WILL COME TO ORDER. IT'S 9:31.
I'M DAN STRAUSS, JOINED BY THE
COUNCILMEMBERS WITH THE FIRST
NAME STARTING WITH ROBERT.
COUNCILMEMBER RIVERA WILL BE A
FEW MINUTES LATE, AND THE
COUNCIL PRESIDENT HAS BEEN
EXCUSED.
>> COUNCILMEMBER KETTLE.
>> HERE.
>> COUNCILMEMBER SAKA.
>> HERE.
>> VICE CHAIR RIVERA. CHAIR
STRAUSS.
>> PRESENT.
>> THREE PRESENT, TWO EXCUSED.
>> THANK YOU, WE HAVE TWO ITEMS
ON THE AGENDA TODAY. WITH THE --
JUST VOTE BRIEFINGS TODAY. THERE
ARE NO VOTES. WE HAVE A BRIEFING
DISCUSSION ON THE EXCEPTIONS
BILL, AMENDING ORDINANCE 126955.
ON THE 2014 BONDS. BEFORE WE
BEGIN, IF THERE'S NO OBJECTION
WE'D LIKE TO ADOPT THE AGENDA.
HEARING NO OBJECTION, THE AGENDA
IS ADOPTED. I SEE WE HAVE NO ONE
PRESENT PHYSICALLY, AND ONE
REMOTE SPEAKER WHO IS NOT
PRESENT. SO DAVID HAINS, I'LL
READ THE INSTRUCTIONS, AND IF
YOU ARE PRESENT BY THE TIME
WE'RE FINISHED, WE WILL CALL ON
YOU, AND IF NOT, WE WILL MOVE
ON. WE WILL NOW OPEN THE PUBLIC
COMMENT. WITHIN THE PER VIEW OF
THE COMMITTEE. CLERK, HOW MANY
SPEAKERS DO WE HAVE SIGNED UP
TODAY?
>> WE HAVE ONE ONLINE, AND ZERO
IN PERSON.
>> THANK YOU. EACH SPEAKER WILL
HAVE TWO MINUTES. WE'LL START
WITH THE ONLY SPEAKER PRESENT.
PUBLIC COMMENT PERIOD WILL BE
MODERATED IN THE FOLLOWING
MATTER. THE PUBLIC COMMENT
PERIOD IS UP TO 20 MINUTES.
SPEAKERS WILL BE CALLED IN THE
ORDER THEY ARE REGISTERED. WE
WILL BEGIN WITH OUR ONE REMOTE
SPEAKER. PUBLIC COMMENT IS NOW
OPEN. DAVID HAYNES, WELCOME. I
SEE YOU'RE WITH US NOW. STAR 6
TO UNMUTE. THERE YOU ARE, DAVID,
TAKE IT AWAY.
>> THANK YOU. WE NEED MORALLY
PROGRESS LAWS. SOLD OUT, DID NOT
HAVE BETTER CHOICE IN HOME,
NEEDING A THREE AND A HALF
WORKWEEK SEVEN DAY PAY. YOU CAN
DOUBLE THE SHIFT, INCREASE THE
MORALE, AND INCREASE THE TAX
BASE. AS IT IS NOW, WE HAVE AN
IMMORAL FINANCIAL SYSTEM OF
MIDDLE MEN, DONORS, FROM THE
SLAVE MASTER MISINTERPRETATION
OF NEO CONSERVATIVES. PITTED
AGAINST WORKERS TO MAKE ENDS
MEET. BEING SHAKEN DOWN, EVERY
MONTH, AND THREE QUARTER MONTH
DIVIDENDS. FORCED TO PAY DOWN
DILAPIDATED LEASE AND RENTALS. A
TEAR DOWN AND REBUILD OF QUALITY
FLOOR SPACES. BECAUSE IT SHORT
CHANGES BUSINESS OWNERS AND
WORKERS AND THE COMMUNITY AT
LARGE THAT ARE BEING SOLD OUT
FOR NONWORKING SHAREHOLDERS BORN
INTO INVESTORS. THE FOUNDATION
OF OUR CIVILIZATION, TO KEEP
SLIDING WITH THE EVILS OF GREED.
JUST LOOK AT THE BONDS ISSUED IN
2014, LET'S BORROW SOME MONEY
TO FINANCE SOME DEBT AND LET'S
NOT DO ANYTHING WITH IT. WHERE
IS THE LEGISLATION THAT TAKES A
SHARE OF THE CAPITAL GAIN AND
ACTUALLY GIVES IT BACK TO THE
WORKERS WHO DO ALL THE WORK.
IT'S THE CRUX OF THE PROBLEM IN
OUR ECONOMY. ALL OF THESE THING
IF YOU CAN POCKET A WHOLE BUNCH
OF CAPITAL GAINS, YOU DESERVE A
TAX BREAK OR YOU DESERVE TO BE
TAXED SO YOU CAN CONTINUE TO RIP
OFF THE WORKERS. IT'S
REVOLTING, YET WE STILL DON'T
HAVE LEGISLATORS SIDING WITH THE
WORKING CLASS.
>> THANK YOU, DAVID. THAT
CONCLUDES OUR REGISTERED
COMMENT. SEEING AS WE HAVE NO
OTHER SPEAKERS LISTED IN PERSON
OR IN REMOTE, WE WILL MOVE ON.
CLERK, WOULD YOU PLEASE READ THE
ORDINANCE.
>>AN ORDINANCE AMENDING
ORDINANCE 126955, WHICH ADOPTED
THE 2024 BUDGET, INCLUDING THE
2024-2029 CAPITAL IMPROVEMENT
PROGRAM (CIP); CHANGING
APPROPRIATIONS TO VARIOUS
DEPARTMENTS AND BUDGET CONTROL
LEVELS; AND RATIFYING AND
CONFIRMING CERTAIN PRIOR ACTS;
ALL BY A 3/4 VOTE OF THE CITY
COUNCIL.
>> GOOD MORNING, COUNCILMEMBER
RIVERA IS PRESENT, AND WAS HERE
DURING PUBLIC COMMENT FOR THE
RECORD. GOOD TO SEE YOU, VICE
CHAIR. TODAY, I'M GOING TO USE
THE SAME FACILITATION STYLE I
USED LAST TIME. I WILL USE
FOLLOW UP QUESTIONS IF
PRESENTERS HAVEN'T GOTTEN TO A
TOPIC THAT WAS DISCUSSED DURING
MY INITIAL BRIEFING. WE'LL SAVE
COMMENTS UNTIL THE END. SO OVER
TO YOU, BEN AND TOM.
>> THANK YOU, CHAIR STRAUSS.
GOOD MORNING, MEMBERS OF THE
COMMITTEE. TOM MIKESELL WITH
YOUR CENTRAL STAFF. THIS
MORNING, WE'RE GOING TO BE
TALKING ABOUT COUNSEL BILL
120979, WHICH IS THE 2024 BUDGET
ACCEPTANCE ORDINANCE. COMMENTS
TODAY ARE GOING TO COVER THREE
MAIN TOPICS. FIRST A BACKGROUND
ON BUDGET ADJUSTMENTS AND HOW
THEY SEQUENCE DURING THE YEAR.
THEN COVER SOME HISTORICAL
TRENDS OF RECENT HISTORICAL
TRENDS FOR THIS TIME OF BILL,
AND FINALLY COVER THE COUNCIL
BILL, 120979 SPECIFICALLY. SO BY
WAY OF BACKGROUND, THERE WERE
REALLY FOUR MAIN PRINCIPAL STEPS
IN THE BUDGET. SO WHEN YOU THINK
ABOUT THE BUDGET, YOU THINK
ABOUT THE FALL PROCESS, WHICH IS
INDEED THE CORE OF
INTO THE FISCAL YEAR, THERE ARE
A NUMBER OF ADJUSTMENTS THAT ARE
MADE TO THAT BUDGET THAT WAS
INITIALLY ADOPTED. FIRST, YOU
WILL TYPICALLY SEE WHAT'S
CALLED A CARRYFORWARD BILL,
WHICH IS ADDING TO THE CURRENT
BUDGET FOR THINGS THAT WERE NOT
COMPLETED IN THE PRIOR BILL.
NEXT, YOU'LL SEE SUPPLEMENTALS
BY WAY OF COMPREHENSIVE. SO
SUPPLEMENTAL ADJUSTMENTS THAT
ADD FUNDING TO CITY BUDGETS FOR
THINGS THAT WEREN'T ANTICIPATED
DURING THE FALL BUDGET PROCESS.
THOSE TAKE THE FORM OF
COMPREHENSIVE BILLS THAT COVER
MULTIPLE DEPARTMENTS AND STAND
ALONE BILLS THAT AFFECT ONE
DEPARTMENT FOR A SPECIFIC TOPIC.
FINALLY, AND THIS SR. AFTER THE
FISCAL YEAR ENDS, YOU GET AN
EXCEPTIONS BILL, WHICH IS SORT
OF A CLEANUP PROCESS THAT
RETROACTIVELY ADJUSTS THE PRIOR
YEAR'S BUDGET FOR ITEMS THAT
EXCEED THE AUTHORITY THAT WAS
PROVIDED FOR THAT ERR YEW.
THAT'S WHAT WE'RE TALKING ABOUT
WITH COUNCIL BILL 120979.
UNFORTUNATELY, IT'S AN
EXCEPTION, AND WHAT WE'VE SHOWN,
WHAT WE HAVE HERE IS A GRAPH
SHOWING OVER THE LAST SEVEN
YEARS THE TRENDS WITH REGARDS TO
EXCEPTIONS. SO THESE ARE IN THE
CONTEXT OF A -- AN $8 BILLION
PLUS FINANCIAL PROGRAM. SO EVEN
THOUGH WE'RE TALKING IN THE
RANGE FROM 2 TO $30 MILLION,
IT'S STILL VERY SMALL IN THE
CONTEXT OF THE ENTIRE CITY
BUDGET. THE GOOD NEWS IS THAT
OVER THIS TIME PERIOD, GENERALLY
THE NUMBER OF BUDGET EXCEPTIONS
HAS BEEN GOING DOWN. FROM A HIGH
POINT OF FOUR EXCEPTIONS, SO
FOUR DEPARTMENTS WITH BUDGET
EXCEPTIONS TOTALING AROUND $30
MILLION IN 2020, TO THE LOW
POINT, WHICH IS TODAY'S BILL,
TOTALING $2.8 MILLION. SO HARD
PROGRESS CAN BE ATTRIBUTED TO
COUNCIL ACTION BY THE FISCAL
TRANSPARENCY PROGRAM, WHICH
HIGHLIGHTS BUDGET ACTUAL
VARIANCE DURING THE YEAR, AND
ALSO PUT IN PLACE SOME -- MADE
ADJUSTMENTS TO THE CITY
DISTRICT'S BUDGET AUTHORITY TO
ALLOW THAT DIRECTOR TO MAKE
MODIFICATIONS TO THE BUDGET,
WHERE THERE'S RESOURCES IN ONE
PLACE THAT CAN BE USED TO COVER
OVERAGES IN ANOTHER. SO THOSE
TWO ACTIONS APPEAR TO BE HAVING
AN AFFECT, AT LEAST IN
MANIFESTED IN TODAY'S BILL. SO
NOW I'LL GET TO THE TOPIC OF
THE DAY, WHICH IS THE 2024
BUDGET EXCEPTIONS. SO THIS IS A
REQUESTED INCREASE TO ORDINANCE
126955, WHICH WAS THE 2024
ADOPTED BUDGET, AND THE REQUEST
IS $1.8 MILLION THAT TAKES THE
FORM OF TWO ITEMS. ONE IS A $1.1
MILLION INDUSTRIAL LINE
INSURANCE FUND INCREASED TO THE
DEPARTMENT OF HUMAN RESOURCES TO
PAY FOR UNANTICIPATED COSTS DUE
TO PENSIONABLE CLAIMS. SO THESE
ARE CLAIMS THAT ARE -- SO THIS
IS BASICALLY FOR WORK INJURIES,
AND THE INJURY WAS SO SEVERE
THAT THE INDIVIDUAL FILING THE
CLAIM IS UNABLE TO RETURN TO
WORK. SO THE CITY NEEDS TO THEN
PRE-FUND A PENSION AMOUNT FOR
THAT PERSON TO HAVE A PENSION
SINCE THEY'RE OUT OF WORK. AND
THOSE ARE TYPICALLY LARGE IN
NATURE, AND UNPREDICTABLE, AND
HENCE WHY THERE'S AN EXCEPTION
IN THIS CASE. THE SECOND IS
WITHIN THE LAW DEPARTMENT, AND
THAT'S A 658,000 GENERAL FUND
REQUEST TO COVER UNANTICIPATED
COSTS IN A VARIETY, FOR A
VARIETY OF FACTORS INCLUDING THE
CRIMINAL CASE MANAGEMENT SYSTEM
PROJECT, WHICH HAD SEEN SEVERAL
DELAYS AND THERE HAS BEEN SOME
DIFFICULT SEQUENCING A BUDGET
WITH THE COST, AND ALSO SOME
WORK DAY IMPLEMENTATION
CHALLENGES. SO AGAIN, THAT IS --
THIS IS THE SMALLEST EXCEPTIONS
BILL IN THE HISTORY THAT WE'VE
BEEN TRACKING. AND FINALLY, THIS
BILL WOULD REQUIRE A THREE
QUARTERS VOTE BY COUNCIL FOR
ADOPTION. THEN TO GO INTO KIND
OF NEXT STEPS IN THE BUDGET
ADJUSTMENT PROCESS. FOR THIS
BILL, SPECIFICALLY, THERE WILL
BE A SECOND HEARING AND POSSIBLE
VOTE IN THE SELECT BUDGET
COMMITTEE ON JUNE 4th, THEN ON
JUNE 10th, THERE WOULD BE A
FINAL VOTE. THEN THERE WILL BE A
2024 CARRY-FORWARD ORDINANCE
ALSO RECEIVING AN INITIAL
BRIEFING ON JUNE 4th, MID-YEAR
SUPPLEMENTAL, MID-YEAR GRANTS
AND ACCEPTANCE AND APPROPRIATION
BILLS WILL BE SUBMITTED IN THE
JUNE TO JULY TIMEFRAME, AND THE
YEAR END GRANT PROPOSAL WILL BE
WITH THE MAYOR'S GRANT FOR 2026
IN SEPTEMBER OF THIS YEAR. AND
THAT CONCLUDES MY PRESENTATION.
>> THANK YOU, TOM. I'LL NOW
OPEN IT UP TO COLLEAGUES FOR
QUESTIONS ON THIS. IF YOU DON'T
HAVE ANY OFF THE TOP OF YOUR
HEADS, I'VE GOT A NUMBER OF
THEM. I DID FORGET TO MENTION AT
THE TOP OF THIS MEETING, TODAY
IS ONE OF THE FIRST STEPS WE'RE
TAKING IN THE BUDGET REFORM
PROCESS THAT WE'VE BEEN WORKING
ON BEHIND THE SCENES. THIS BILL
BEFORE US DEMONSTRATES EXTRA
EXCEPTIONS ARE IN AN ALL-TIME
LOW, BOTH IN NUMBER AND FISCAL
AMOUNT, AS WELL AS OUR NEXT
AGENDA ITEM WILL BE AN ADVANCED
REPAYMENT OF BONDS THAT WE HAVE,
USING INTEREST MONEY THAT WE'VE
EARNED OFF OF HAVING OTHER
BONDS. SO JUST WANT TO SET THAT
FRAMEWORK. I'LL GET INTO WHAT
WE'RE UP TO IN OUR SELECT
COMMITTEE MEETING ON JUNE 4th AT
THE END OF THIS COMMITTEE, BUT I
WANTED TO GIVE THAT PREVIEW THAT
THIS IS REALLY A BUDGET REFORM
AND ACTION MEETING TODAY.
COLLEAGUES, DO YOU HAVE ANY
QUESTIONS ON THE PRESENTATION
THAT WE'VE JUST RECEIVED?
PLEASE, VICE CHAIR.
>> THANK YOU, CHAIR. THANK YOU,
DIRECTOR NOBLE AND TOM FOR BEING
HERE. ON THE SDHRs 1.1 MILLION
DOES THIS -- SO IT COMES OUT OF
SD R'S BUDGET? NOT THE BUDGET
OF THE DEPARTMENT WHERE VETTINGS
IS INCURRING, BASICALLY THE
COST. IS THIS LIKE A FUND THAT
SDHR MANAGES AND THEN EMPLOYEES
PUT INTO THE FUND? HOW DOES IT
ALL WORK? I KNOW I'M GETTING A
LITTLE INTO THE WEEDS.
>> NO, NOT THE WEEDS. SO THIS IS
KIND OF A CHARGE THAT'S
ASSESSED TO ALL THE DEPARTMENTS
THAT HAVE PAYROLL. SO ANY
DEPARTMENT THAT HAS PAYROLL IS
ASSESSED THIS CHARGE IN THE
BUDGET. SO THEY COLLECT ALL OF
THOSE CHARGES ACROSS ALL THE
CITY BUDGETS AND THEN BUILD UP A
BALANCE IN THE INDUSTRIAL
INSURANCE FUND, AND CITY BUDGET
OFFICE WORKS DURING THE YEAR TO
DETERMINE WHAT THE RIGHT CHARGE
IS TO HAVE THE RIGHT AMOUNT OF
MONEY TO PAY ALL THE CLAIMS. AND
SO, IT'S A FORECASTING
EXERCISE. AND IT'S HIGHLY
VARIABLE. AND SO THAT'S HOW IT
WORKS. THE BALANCE THAT THEY --
THAT THEY DESIGNED IN THE FUND
FOR 2024 WAS NOT SUFFICIENT TO
MEET WITH HOW THE CLAIMS WERE
COMING IN. THEY ACTUALLY MADE
AND RECEIVED A -- I THINK A $6.7
MILLION INCREASE IN THE BUDGET
AUTHORITY IN THE YEAR END
SUPPLEMENTAL FOR 2024. SO THEY
SAW THIS HAPPENING. IT JUST THE
ACTUAL AMOUNT WAS SLIGHTLY
HIGHER THAN EVEN THEIR KIND OF
EFFORTS TO CATCH UP WITH WHAT
THE CLAIMS WERE COMING IN. SO
YEAH, THAT'S THE KIND OF , TAKI
INFORMATION AND BUILDING IT INTO
THIS YEAR, THEY'RE RIGHT NOW
BUILDING OUT THOSE RATES, WHAT
THEY THINK THEY NEED TO BE TO
KEEP UP WITH WHAT MERGING CLAIMS
ACTIVITIES ARE.
>> YEAH. BECAUSE THAT MAKES
SENSE AS VARIABLE. WE DON'T
KNOW HOW MANY EMPLOYEES MIGHT
GET HURT ON THE JOB, ET CETERA.
SO THERE IS NO WAY OF KNOWING
AHEAD OF TIME. BUT I IMAGINE
THAT THEY LOOK AT PAST YEARS AND
THEN THEY MAKE AN ESTIMATE ON
HOW MUCH THEY MIGHT NEED, AND
THEN THIS YEAR IT WENT OVER BY A
BIT.
>> THAT IS CORRECT.
>> OKAY, THANK YOU, CHAIR.
>> THANK YOU, VICE CHAIR.
COLLEAGUES, ANY OTHER QUESTIONS
AT THIS TIME? I COULD JUMP INTO
A FEW. TOM, IF YOU COULD RETURN
TO SLIDE THREE, YOU MENTIONED
THAT THE TRANSPARENCY ORDINANCE
HELPED ASSIST IN THE EXCEPTION,
BOTH THE NUMBER OF EXCEPTIONS
AND THE FISCAL AMOUNT BEING
REDUCED. CAN YOU SPEAK A LITTLE
BIT MORE TO WHAT DID YOU MEAN BY
THAT? DIG IN A LITTLE DEEPER,
AND HELP US UNDERSTAND WHAT
CONTRIBUTED TO THE REDUCTION IN
BOTH NUMBERS OF DEPARTMENTS AS
WELL AS THE AMOUNTS THAT THEY
WERE NEEDING TO BE RELIEVED OF.
SHARE MORE ON THAT STORY OF HOW
WE REDUCE THE NUMBER AND FISCAL
AMOUNT.
>> THANK YOU FOR THAT QUESTION,
CHAIR STRAUSS. ONE OF THE THINGS
WAS, IT ENHANCED REPORTING. SO
IN THIS SPECIFIC CASE, IT'S
BUDGET TO ACTUAL MONITORING, AND
IT'S PART OF A FORMALIZED
PROCESS WITH THE COUNCIL, BUT
IT'S ALSO PART OF AN INFORMAL
PROCESS WITH CBO. SO THE BUDGET
OFFICE HAS BEEN RAMPING UP THEIR
BUDGET MONITORING ACTIVITIES AND
MONITORING COST VERSUS BUDGET IS
KIND OF THE FIRST LINE OF
DEFENSE AGAINST FIGURING OUT IF
YOU HAVE ENOUGH MONEY TO BE ABLE
TO PAY THOSE EXPENSES. SO
THAT'S KIND OF THE BEHIND THE
SCENES. THE FISCAL TRANSPARENCY
PROGRAM ITSELF REQUIRES A SEMI
ANNUAL BUDGET SUPPORT. I BELIEVE
THE FIRST ONE IS COMING UP THIS
YEAR WHICH WILL BASICALLY, THE
BCL LEVEL, COMPARE BUDGET TO
ACTUAL PROGRESS, THEN THERE WILL
BE ONE AT YEAR'S END AS WELL.
SO THAT'S KIND OF HOW IT WORKS.
ENHANCED BUDGET MONITORING LEADS
TO BETTER SCRUTINY, LEADS TO
FEWER EXCEPTIONS.
>> THANK YOU, BEN.
>> JUST TO ADD TO THAT, DOESN'T
GET MUCH CREDIT AND PROBABLY
AMONG FOLKS WHO DEAL WITH THE
SYSTEM MORE EYE ROLLS THAN NOT,
BUT IN 2019, WE IMPLEMENTED A
NEW FINANCIAL SYSTEM CITYWIDE
THAT HAS ALSO PROVIDED THE
TECHNICAL TOOLS NEEDED FOR
BETTER MONITORING. BOTH ACTUALLY
AT THE DEPARTMENT LEVEL, BUT
MORE SPECIFICALLY AT THE
CENTRALIZED, AT THE BUDGET
OFFICE LEVEL AND EVEN TO A
DEGREE FOR CENTRAL STAFF AS
WELL. WE DON'T HAVE THE STAFF
TO BE MONITORING DAY IN AND DAY
OUT. BUT THE SYSTEMS THEMSELVES
LET YOU POKE IN RIGHT AWAY, AND
SEE WHAT IS POSTED ON ANY GIVEN
DAY. AND BEFORE, WE WERE
TRACKING THIS STUFF, WE HAD TO
BALANCE OUR BOOKS, BUT REALLY,
NOT AS CONSISTENTLY AS THEY ARE
NOW. SO THERE WAS A LOT OF WORK
DONE AMONG THE ACCOUNTANTS
BEFORE THE SYSTEM ROLLED OUT ON
DEFINING TERMS AND DEFINING HOW
COSTS WERE GOING TO BE BOOKED,
SO THAT YOU COULD LOOK AT
EVERYONE AND SAY THIS IS X
DEPARTMENT, THEY DO THIS THAT
WAY AND THE PREVIOUS SYSTEM,
THOSE KINDS OF THINGS HAD
EVOLVED OVER TIME. SO THAT
TECHNOLOGY SYSTEM, WE HAD TO
REPLACE IT. IT WAS GOING ON 30
YEARS OLD, AND YOU KNOW, KIND OF
BLUE SCREEN OLD TECHNOLOGY. BUT
THIS IS ONE OF THE BENEFITS.
>> THANK IT AT THAT.
>> THANKS. CAN WE MOVE ONTO
SLIDE NUMBER 4, JUST THE TWO
EXCEPTIONS THAT I WANTED TO
TOUCH ON. VICE CHAIR, THANK YOU
FOR THE FIRST ONE. BEN, I KNOW
THAT YOU'VE HAD CONVERSATIONS
WITH THE CITY ATTORNEY'S OFFICE
REGARDING THEIR EXCEPTION HERE
AS VICE CHAIR MENTIONED WITH THE
FIRST ONE, IT'S HARD TO
PREDICT. THERE ARE A LOT OF
VARIABLES. THIS SEEMS LIKE A
TYPICAL EXCEPTION. WE ONLY HAVE
TWO THIS YEAR, WHICH IS GREAT
NEWS. CAN YOU SHARE WITH US WHAT
YOU HAD DISCUSSED WITH THE CITY
ATTORNEY'S OFFICE, AS TO WHY
THEY HAVE AN EXCEPTION THIS
YEAR?
>> DOING OUR DUE DILIGENCE, WE
WANTED TO FOLLOW UP. I SPOKE
DIRECTLY TO THE FINANCE DIRECTOR
AT THE CITY ATTORNEY'S OFFICE,
THE LAW DEPARTMENT, AND THERE
WAS CIRCUMSTANCES, YOU KNOW, AND
THOSE CIRCUMSTANCES EMERGE IN
THE CITY ATTORNEY ALWAYS OFFICE
RATHER THAN SOMEWHERE ELSE. BUT
IN PARTICULAR, THERE WERE SOME
EXPENSES RELATED TO ONE OF THESE
I.T. SYSTEMS. SO CITY ATTORNEY
ALWAYS OFFICE ALONG WITH SPD AND
THE COURTS ARE MOVING TO A NEW
CASE MANAGEMENT SYSTEM AND THAT
WAS DELAYED IN ITS
IMPLEMENTATION, WHICH MEANT THAT
THE DEPARTMENT HAD TO INCUR
COSTS BOTH TO LICENSE THE OLD
SYSTEM FOR AN EXTRA YEAR AND TO
KEEP SOME PERSONNEL ON, BECAUSE
YOU NEED, AT SOME POINT, A
DUPLICATE PERSONNEL, SOME THAT
ARE WORKING WITH THE OLD SYSTEM,
AND SOME WORKING WITH THE NEW
SYSTEM, IF YOU WILL. THEY HAD
SOME PERSONNEL ISSUES. ONE OF
THE FINANCIAL SYSTEMS IN THIS
CASE CAUSED A COMPLICATION, SO
THE CITY HAS RECENTLY MOVED TO
WORK DAY AS OUR ESSENTIALLY TIME
PAY KEEPING SYSTEM. THROUGH LAST
YEAR AND INTO THIS YEAR, WE'RE
WORKING OUT SOME OF THOSE KINKS.
AND BECAUSE THERE WAS SOME DELAY
IN THE WAY TIME WAS GETTING
POSTED IN THE COST OF LABOR WAS
GETTING POSTED, THEY DIDN'T
HAVE A REALTIME VIEW INTO WHAT
THEIR EXPENSES WERE, VERSUS WHAT
THEIR RESOURCES WERE. SO AGAIN,
WE'RE WORKING THOSE KINKS OUT.
IT DEMONSTRATES HOW IMPORTANT
THOSE SYSTEMS ARE. BOTTOM LINE,
HAVING TALKED TO LAW AND CBO,
SOME LEVEL OF EMBARRASSMENT. I
HOPE IT WASN'T INTENDED, AND
THEY'VE BOTH COMMITTED TO
WORKING ON REGULAR CHECK-INS TO
KNOW WHERE EVERYONE STANDS ON
EXPENDITURES RELATIVE TO BUDGET.
>> THANK YOU. BECAUSE WE DO HAVE
OTHER DEPARTMENTS THAT HAVE
FACED THE NEW TECHNOLOGICAL
SYSTEMS THAT HAVEN'T HAD THIS
COST OVERRUN. THAT SAID, THERE
IS A PERFECT STORM AT TIMES WHEN
MULTIPLE FACTORS ARE COMPOUNDING
ON EACH OTHER, NOTING THAT THIS
IS A LOT OF MONEY. $658,000. BUT
RELATIVE TO OUR OVERALL BUDGET,
I'D SAY WE AS THE CITY HAVE
DONE A GOOD JOB TO MINIMIZE
EXCEPTIONS. BEN, YOU DISCUSSED
ONGOING CONVERSATIONS THROUGHOUT
THE YEAR TO MAKE SURE THAT THIS
DOESN'T HAPPEN AGAIN. CAN YOU
ELABORATE A LITTLE MORE ON WHAT
STEPS WE'RE GOING TO BE TAKING
WITH THE LAW DEPARTMENT AND
OTHER DEPARTMENTS TO MAKE SURE
WE DON'T HAVE TO COME BACK TO
PROVIDE EXCEPTIONS.
>> CENTRAL STAFF ISN'T BUILT
FOR THAT, IF YOU WILL. BUT THE
BUDGET OFFICE, THE WAY THAT TOM
DESCRIBED IT, THE BUDGET OFFICE,
AGAIN, THANKS TO THESE SYSTEMS
AND A GENERALIZED APPROACH IS
DOING MORE REGULAR TRACKING OF
EXPENDITURES RELATIVE TO
ACTUALS, EVERMORE THIS YEAR AS
THEY'RE LOOKING TO ACTUALLY
PURPOSELY UNDERSPEND THE BUDGET,
THAT WILL BE AN EVERMORE
IMPORTANT PART OF THE WORK.
HAVING SPOKE AGAIN TO BOTH
BUDGET AND LAW ENFORCEMENT IT'S
APPARENT THAT NEITHER OF THEM
WANTS THIS TO HAPPEN AGAIN, SO
THEY WERE INSTITUTING FOR
THEMSELVES, LET'S KEEP TRACK OF
WHAT'S GOING ON HERE AND MAKE
SURE WE DON'T END UP IN THIS
SITUATION AGAIN. THAT IS USED
AGAIN, DEPARTMENT TO DEPARTMENT,
AND AS YOU CAN SEE IN THIS CASE,
IT HAS GENERALLY WORKED. I WOULD
BE VERY SURPRISED IF WE GOT
EXCEPTANCE THIS YEAR, OR RATHER
NEXT YEAR FROM THIS YEAR,
BECAUSE THE EXECUTIVE IS
TARGETING UNDERSPEND IN MANY OF
THE FUNDS IN ORDER TO MANAGE THE
CURRENT DROP IN REVENUE, THE
REVENUE FORECAST.
>> LET THE RECORD REFLECT THE
CENTRAL STAFF DIRECTOR HOPES
THAT WE DON'T HAVE ANY
EXCEPTIONS NEXT YEAR. THANK YOU,
BEN. I WILL SAY, YOU KNOW, I'LL
BE MEETING WITH THE CITY
ATTORNEY NEXT WEEK WITH YOURSELF
AND OTHERS JUST TO DIG IN MORE
TO THIS PERFECT STORM AND
UNDERSTAND WHAT ACCOUNTABILITY
MEASURES WILL BE IN PLACE MOVING
FORWARD. COUNCILMEMBER KETTLE, I
DO SEE YOU HAVE A HAND.
>> YES, THANK YOU, CHAIR
STRAUSS. I JUST WANTED TO FOLLOW
UP. THANK YOU, MR. NOBLE. THANK
YOU MR. MIKESELL TOO, APPRECIATE
THE PRESENTATION. ON THAT POINT,
ON THE POINT THAT YOU WERE JUST
TALKING ABOUT, THE SEATTLE ADD
ADMINISTER COURT. THE THIRD PART
OF THIS STORY IS THE DATA
EXCHANGED BETWEEN THE COURT AND
THE ATTORNEY'S OFFICE. AND MR.
LLOYD TOLD ME THAT WAS FIXED. SO
I'M ASSUMING THAT HOPEFULLY
THIS WILL NOT BE A REOCCURRING,
BECAUSE ONE WOULD ASSUME IF THE
DATA EXCHANGE IS FIXED THAT THE
OTHER PIECE
>> WELL SAID.
>> THANK YOU. COLLEAGUES, ANY
OTHER QUESTIONS ON THIS
ORDINANCE? WE WILL BRING THIS
FOR A VOTE IN THE SELECT
COMMITTEE ON JUNE 4th. ANY OTHER
QUESTIONS TODAY? THANK YOU.
WE'LL MOVE ONTO THE NEXT AGENDA
ITEM. CLERK, WILL YOU PLEASE
READ THE SHORT TITLE OF THE
SECOND ITEM OF BUSINESS INTO THE
RECORD.
>> BRIEFING ON THE ADVANCED
REPAYMENT OF 2014 BONDS. THIS
ITEM IS FOR BRIEFING AND
DISCUSSION. PRESENTERS INCLUDE
DAN EDER, INTERIM DIRECTOR OF
THE CITY BUDGET OFFICE. JAMIE
CARNELL, DIRECTOR OF THE OFFICE
OF CITY FINANCE, AND TOM
MIKESELL, COUNCIL CENTRAL STAFF.
>> THANK YOU. THANK YOU FOR
JOINING US EDER, DIRECTOR OF CB
US. AND DIRECTOR CARNELL, THE
DIRECTOR OF FINANCE WITH US
TODAY. THANKS FOR STICKING WITH
US, TOM. I'LL PASS IT OVER TO
THE THREE OF YOU, AGAIN, TO WALK
US THROUGH. COLLEAGUES IF I HEAR
INFORMATION THAT HAS BEEN MISSED
FROM OUR ORIGINAL BRIEFING, I'LL
ASK THOSE FOLLOW UP QUESTIONS.
OTHERWISE, I'LL SAVE MY
COMMENTS FOR THE END. OVER TO
YOU. THANK YOU.
>> CHAIR, I'M GOING TO PASS
OVER TO BUDGET DIRECTOR EDER TO
START US OFF.
>> GOOD MORNING. CHAIR STRAUSS,
MEMBERS OF THE COMMITTEE. I'M
DAN EDER, THE INTERIM DIRECTER
OF THE CITY BUDGET OFFICE. AS
THE CHAIR NOTED, WE'RE JOINED
REMOTELY BY MY COLLEAGUE, JAMIE
CARNELL, THE CITY FINANCE
DIRECTER. I ALSO WANTED TO
THANK, CHRISTY BEETY, THE
CITY'S DIRECTOR OF DEBT
MANAGEMENT, WHOSE TEAM DID THE
HEAVY LIFTING ON THIS
LEGISLATION, ALONG WITH DIRECTOR
CARNELL. UNFORTUNATELY, CHRISTY
IS NOT ABLE TO JOIN US TODAY,
BECAUSE SHE IS OUT OF TOWN ON
LEAVE. THE BILL UP FOR
DISCUSSION TODAY WOULD ALLOW THE
CITY TO REDEEM, OR PAY OFF SOME
LIMITED TAX GENERAL
OBLIGATIONERS LTGO BONDS THAT
WERE ISSUED IN 2014. WE'RE GOING
TO SKIP TO SLIDE TWO, PLEASE. IN
TERMS OF PROVIDING SOME BRIEF
HISTORY AND CONTEXT, IN 2014,
THE CITY ISSUED $6.7 MILLION IN
BONDS TO PURCHASE A PROPERTY
REFERRED TO AS AURORA STONE IN
NORTH SEATTLE. THE MAP ON THE
RIGHT SIDE OF THIS SLIDE SHOWS
THAT THE PROPERTY IS LOCATED AT
130th IN AURORA. THE CITY
INTENDED TO DEVELOP THIS
PROPERTY AND ACQUIRE THE
PROPERTY FOR THE PURPOSE OF
CREATING A NEW, AND EXPANDED
NORTH PRECINCT FOR THE SEATTLE
POLICE DEPARTMENT. THE CITY HAS
NOT MOVED FORWARD WITH
DEVELOPING THAT PROJECT. THE
CITY HAS LEASED THE PROPERTY TO
A PRIVATE BUSINESS THROUGH A
SERIES OF SHORT-TERM LEASES OVER
THE YEARS. THIS HAS BOTH HELPED
THE SITE TO REMAIN ACTIVATED AND
HAS GENERATED SOME REGULAR
INCOME TO OFFSET THE COSTS OF
HOLDING THE PROPERTY. LAST YEAR,
THE BONDS BECAME CALLABLE,
MEANING THAT THE CITY CAN NOW
REDEEM, OR PAY OFF THE REMAINING
PRINCIPAL. SPECIFICALLY, THERE
IS $3.4 MILLION REMAINING OF THE
ORIGINAL $6.7 MILLION IN LOANS.
PAYING OFF THE BONDS WILL END
THE DEBT SERVICE. THIS WILL SAVE
THE CITY APPROXIMATELY $75,000
ANNUALLY IN INTEREST PAYMENTS
THROUGH THE EXPECTED 2034 END OF
THE DEBT SERVICE, IF WE WERE TO
GO -- IF WE WERE NOT TO REDEEM
THE BONDS. IN THE WAY THAT WE
ARE APPROACHING, WE CAN REDUCE
OUR BUDGETED DEBT SERVICE
THROUGH THAT PERIOD OF TIME, AND
REDUCE THE INTEREST EXPENSE THAT
WE'RE PAYING ON THESE BONDS.
THE NEXT SLIDE IS SHOWING A HIGH
LEVEL TIMELINE. IT REPEATS SOME
OF THE INFORMATION, BUT JUST
SHOWS IS IN A GRAPHICAL WAY. IN
2014, THE CITY ISSUED THE
ORIGINAL BONDS, $6.7
IN 2024, ACCORDING TO THE BOND
CONVENANCE, THE BONDS BECAME
CALLABLE, ALLOWING THE CITY TO
PAY OFF THE REMAINING PRINCIPAL
ON THE BONDS EARLIER THAN THE
FULL PERIOD OF TIME THAT THE
DEBT SERVICE WAS ORIGINALLY
SCHEDULED. WE ARE HERE TODAY,
PROPOSING THAT WE APPROPRIATE
FUNDS TO REDEEM THE BONDS AND IF
THE LEGISLATION HAS PASSED, THEN
WE WILL REDEEM THE REMAINING
$3.4 MILLION IN OUTSTANDING
PRINCIPAL PLUS APPROXIMATELY
$100,000 IN INTEREST PAYMENTS.
THAT WILL DEPEND ON EXACTLY
WHICH DAY THE BONDS ARE
REDEEMED. SLIDE FOUR SHOWS THE
APPROACH THAT WE'RE PROPOSING
TO USE TO PAY OFF THE REMAINING
PRINCIPAL. THERE IS, AGAIN, A
TOTAL OF $3.5 MILLION THAT'S
BEEN IDENTIFIED FOR THE
REDEMPTION OF THE OUTSTANDING
PRINCIPAL. THIS BREAKS DOWN TO
ABOUT $1.9 MILLION IN INTEREST
EARNINGS ON PAST YEARS' TAXABLE
BOND FUNDS FROM 2017, 2018,
2019, AND 2021, IN ADDITION TO
THAT $1.9 MILLION, THERE'S AN
ADDITIONAL $1.3 MILLION IN THE
CUMULATIVE RESERVE FUND, THIS IS
INTEREST THAT EXCEEDED FORECAST
LEVELS. AND FINALLY, THERE'S
ABOUT $300,000 OF REAL ESTATE
EXCISE TAX 1 CAPITAL FUNDS. AND
THIS TOO IS THE AMOUNT THAT IS
ABOVE THE PREVIOUS FORECAST.
>> DIRECTOR, PETER, BEFORE
MOVING ON, JUST DIGGING INTO
THIS A LITTLE MORE DEEPLY. A LOT
OF FACTS THERE. WITH EACH OF
THESE ACCOUNTS, WE USED BONDS IN
THE PAST TO FUND PROJECTS. IS
THAT A CORRECT UNDERSTANDING FOR
EACH OF THESE LINE ITEMS?
>> CORRECT.
>> WHEN WE RECEIVED MONEY FROM
THE BONDS THERE WAS TIME BETWEEN
US RECEIVING THE MONEY AND
EXPENDING ALL OF THOSE FUNDS IN
THAT ACCOUNT, IS THAT A CORRECT
UNDERSTANDING?
>> YES, THAT'S ACCURATE.
>> AND DURING THAT TIME WE
RECEIVED INTEREST THAT EXCEEDED
THE AMOUNT OF DOLLARS THAT WE
NEEDED FOR THE PROJECT THAT WE
CALLED THE BOND FOR. IS THAT
GENERALLY THE CORRECT
UNDERSTANDING THERE?
>> YES, THAT'S CORRECT.
>> AND FROM THERE, AFTER WE
COMPLETED THE PROJECT, WE HAD
THIS INTEREST SITTING IN THESE
ACCOUNTS THAT I KNOW THAT OVER
THE PAST YEAR AND A HALF THROUGH
YEAR LEADERSHIP AND OUR WORK
TOGETHER OF BUDGET REFORM AND
SCRUTINIZING EVERY ACCOUNT, THIS
FUND -- THESE FUNDS WERE
IDENTIFIED AS DOLLARS THAT WE
COULD USE. THE INTEREST FROM
THESE PREVIOUS BONDS. IS THAT
WHERE WE FIND THIS MONEY TODAY?
>> YES, THE CULMINATION OF THAT
WORK HAS RESULTED IN US
DETERMINING THAT THERE ARE SOME
SEVERAL HUNDRED THOUSAND DOLLARS
IN EACH OF THESE BOND FUNDS
AVAILABLE FOR THIS PURPOSE. THEY
WERE LIMITED IN TERMS OF WHAT
KINDS OF EXPENDTURES WE CAN USE
THE FUNDS FOR. THIS IS ONE OF
THOSE -- ONE OF THOSE ACCEPTABLE
USES, AND WE'RE PROPOSING TO DO
SO TO SAVE THE INTEREST EARNINGS
THAT WE WOULD OWE ON THE
OUTSTANDING BONDS OTHERWISE.
>> IN THE RESTRICTED NATURE OF
THESE BONDS ARE THAT THEY HAVE
TO BE USED FOR CAPITAL PROJECTS
IN THE PUBLIC SPHERE. SO IN MY
OPINION, I THINK WE'RE MAKING
THE RIGHT CHOICE TODAY, BUT IF
WE WERE TO LOOK AT A MORE BROAD
DEFINITION, I COULD USE THESE
DOLLARS TO BUILD THE DOG PARK ON
LEARY WAY, BECAUSE IT'S ALL
CAPITAL MONEY AND IT'S ALL IN
THE PUBLIC SECTOR. IS THAT
CORRECT?
>> I KNOW THAT THERE ARE VERY
SPECIFIC RESTRICTIONS. I DON'T
KNOW WHETHER IT -- THE EXAMPLE
THAT YOU GAVE JUST NOW MEETS
THOSE RESTRICTIONS OR NOT.
DIRECTOR CARNELL PERHAPS COULD
ANSWER THAT QUESTION.
>> YES. THANK YOU, DIRECTOR
EDER. IF THAT PROJECT WAS A
BOND-IDENTIFIED PROJECT, HAD
GONE THROUGH THE CIP BUDGET AND
BEEN APPROVED, THEN WE WOULD
LOOK AT WAYS TO UTILIZE THESE
FOR BOND PROJECTS AS WELL. WE'VE
DONE THAT IN THE PAST. THE
INTEREST IS BEING EARNED HERE
BECAUSE OF THE GOOD INTEREST
RATE OVER THE LAST SEVERAL
YEARS. SO WE DO HAVE THIS
ABILITY. BUT WE ALWAYS TAKE A
LOOK AT WHAT WE HAVE SITTING IN
THE BOND FUNDS, AND WHETHER OR
NOT WE COULD UTILIZE THAT FOR
ANOTHER PROJECT, ONCE THAT'S
BEEN APPROVED THROUGH THE BOND
PROCESS, THAT COULD BE A
POTENTIAL.
>> THANK YOU FOR THE ADDITIONAL
CLARITY. I JUST WANTED TO DIG
INTO WHERE THIS MONEY CAME FROM,
AND WHAT ARE THE FULL USES.
COLLEAGUES, I THINK THIS IS A
SMART PIECE OF BUDGET REFORM.
BACK TO YOU.
>> I WOULD JUST FOLLOW UP ON
THAT BY SAYING MY UNDERSTANDING
IS THIS IS THE EXTENT OF THE --
THAT THE INTEREST EARNINGS IN
THESE BOND FUNDS. THERE ISN'T
ANOTHER POT OF MONEY AVAILABLE
FOR OTHER PURPOSES. SO THAT I
WAS THE FIRST QUESTION I ASKED
AS WELL. THAT'S GREAT THAT
WE'VE IDENTIFIED THESE EXTRA
FUNDS. CAN WE USE THEM FOR
ANYTHING ELSE? AND
UNFORTUNATELY, WE CAN'T. THE
NEXT SLIDE, SLIDE FIVE, IS
HIGHLIGHTING THE FINANCIAL
BENEFITS THAT I'VE TOUCHED UPON
BY REDEEMING THE BONDS THE CITY
WILL NO LONGER NEED TO REPAY THE
DEBT SERVICE ON THE OUTSTANDING
PRINCIPAL THAT WOULD OTHERWISE
BE PAID FOR WITH REAL ESTATE
EXCISE TAX FUNDS THROUGH 2034.
THIS RESULTS IN APPROXIMATELY
$75,000 IN INTEREST IN SAVINGS
THAT WOULD OTHERWISE BE USED TO
PAY FOR INTEREST. THAT TOTAL IS
ABOUT $675,000, NOMINALLY OVER
THE REMAINING LIFE OF THE BONDS
THROUGH 2034. THE LAST SLIDE IS
JUST TO HIGHLIGHT SUMMARY. THE
CITY WILL REDEEM THE BONDS
SHORTLY AFTER THE PASSAGE OF THE
LEGISLATION, AND IT WILL
CONCLUDE ON SAVINGS THROUGH THE
REFUND OF 2034. I WILL BE HAPPY
TO ANSWER ANY QUESTIONS.
>> THANK YOU, CHAIR. THANK YOU,
DIRECTOR REEDER HAVE A
QUESTION ABOUT ON SLIDE -- THE
PROPERTY ITSELF. YOU INDICATED
ON HERE THAT THE ELIMINATION OF
THE DEBT SERVICE WOULD SAVE THE
75K ANNUALLY, AND WILL PROVIDE
FLEXIBILITY IN HOW THIS SITE IS
USED GOING FORWARD. WHAT DOES
THAT MEAN?
>> WE COULD STILL DEVELOP IT FOR
A MUNICIPAL PURPOSE, SUCH AS THE
ONE THAT WAS ORIGINALLY
CONCEIVED OF.
>> A MUCH NEEDED EXPANSION OF
THE NORTH PRECINCT, WHICH I
AGREE.
>> A MUCH NEEDED EXPANSION OF
THE NORTH PRECINCT. WE COULD
SELL IT. WE COULD USE IT NORMAL
WE'RE CURRENTLY DOING IN AN
INTERIM BASIS, WHICH IS TO SAY
CONTINUE LEASING IT TO A PRIVATE
PARTY. THERE IS A CAR DEALERSHIP
THAT IS LOCATED ON THE NORTHEAST
PORTION OF THIS. A VERY LARGE
SITE. THEY DON'T TAKE UP THE
ENTIRE PROPERTY. IN THE TIME
THAT WE'RE DECIDING WHAT THE
LONG TERM PLANS ARE FOR THAT
PROJECT, THAT'S A PERFECTLY
ACCEPTABLE USE NOW THAT THE DEBT
IS PAID OFF.
>> AND IF YOU DON'T PAY OFF THE
DEBT, CAN YOU STILL SELL THE
PROPERTY?
>> YES. WE COULD, BUT WE WOULD
HAVE TO THEN USE A PORTION OF
THE PROCEEDS TO PAY THE
OUTSTANDING BONDS.
>> SO EITHER WAY, YOU COULD SELL
THE PROPERTY OR USE IT IN WHICH
EVER WAY YOU WOULD LIKE.
>> THAT'S RIGHT. THAT'S NOT A
NEWLY NOTED OPTION, I JUST NOTE
THAT THERE'S IN THE REALM OF
POSSIBILITY AS WELL.
>> I JUST WONDERED WHAT THE
FLEXIBILITY, THE IDENTIFIED
FLEXIBILITY WAS, BUT IT SOUNDS
LIKE EITHER WAY WE COULD USE THE
PROPERTY HOWEVER WE LIKE NOW OR
IF WE PAY OFF. SO I WAS TRYING
TO UNDERSTAND WHAT THIS
FLEXIBILITY IS. IT DOESN'T SEEM
LIKE ANY DIFFERENT.
>> I THINK IT WAS PERHAPS A
LOOSELY USED TERM. WE'RE TRYING
TO JUST DESCRIBE IT. THERE ARE
OPTIONS BEFORE THE CITY AFTER WE
REDEEM THESE BONDS, INCLUDING
MUNICIPAL USES. NONGOVERNMENTAL
USES, AND JUST, DISPOSING OF THE
PROPERTY.
>> AND HAS THE CITY IDENTIFIED A
USE? IS THERE A USE IDENTIFIED
FOR THIS?
>> NOPE. WE HAVE NOT AT THIS
POINT.
>> GREAT. THANK YOU, CHAIR.
>> THANKS, VICE CHAIR.
COUNCILMEMBER KETTLE, AND
COUNCILMEMBER SAKA.
>> THANK YOU, CHAIR STRAUSS.
THANK YOU FOR THE PRESENTATION.
AS ALWAYS, BEING SMART ON
FINANCE IS ALWAYS MEANING BEING
SMART ON BUDGET. THIS IS YET
ANOTHER EXAMPLE. SO I UNDERSTAND
IT. IT MAKES SENSE. BUT TO
FOLLOW UP ON THE VICE CHAIR'S
COMMENT RELATED TO THE BOTTOM
BULLET ON SLIDE 2, SELLING IT
WOULD BE A MISTAKE. AND I WOULD
SAY, THE CITY SHOULD BE MAKING A
NEW NORTH PRECINCT. BECAUSE
NORTH PRECINCT, THE BUILDING
THAT HOUSES THE NORTH PRECINCT
NOW IS SUBSTANDARD. IT'S
SUBSTANDARD TO THE MISSION, AND
IT'S SUBSTANDARD TO THE MEN AND
WOMEN WHO ARE FORCED TO WORK
THERE. SO MY RECOMMENDATION IS,
AS CHAIR PUBLIC SAFETY, IS THAT
WE SHOULD LOOK AT IT AS BEING
THE LOCATION OF THE NEW NORTH
PRECINCT.
>> YEAH.
>> SO I HEAR QUESTIONS LIKE
WHAT'S THE CITY THINKING ABOUT?
I COULD TELL YOU WHAT THE CITY
IS THINKING ABOUT, AT LEAST FROM
THE LEGISLATIVE SIDE, WE HAVE TO
DO RIGHT WITH RESPECT TO THE
NORTH PRECINCT, AND THAT'S
GOING TO BE HUGE. WE TALK ABOUT
ALL THE ISSUES IN D5 RIGHT NOW.
I KNOW COUNCILMEMBER MOORE IS
NOT HERE, SHE WOULD EASILY
CHRONICLE ALL OF THEM. PART OF
IT IS WE NEED TO INVEST IN THE
NORTH SIDE OF THE PRECINCT. WE
NEED TO INVEST IN THE NORTH
SIDE. I JUST WANTED TO PUT MY
OAR IN THE WATER, IF YOU WILL,
WHEN I HEAR QUESTIONS LIKE WHAT
IS THE CITY GOING TO DO? IT'S
QUITE CLEAR WHAT NEEDS TO
HAPPEN, PARTICULARLY SINCE IT'S
ALREADY BEEN BOUGHT. IT'S FOR
THAT PURPOSE. IT'S A GOOD
LOCATION. IT MAKES A LOT OF
SENSE.
>> THANK YOU, COUNCILMEMBER
KETTLE. I WILL SAY THIS
ORDINANCE IS GOING TO HELP US
SECURE AND KEEP THAT PROPERTY
FOR THE FUTURE. DIRECTOR EDER, I
SEE YOU HAVE A HAND.
>> I WAS GOING TO MAKE THE SAME
POINT THAT YOU JUST DID CHAIR
STRAUSS. THIS DOES PRESERVE THIS
OPTION, BETWEEN HAVING THE LAND
AND HAVING A NORTH PRECINCT
DEVELOPED ON THAT LAND. THERE
WAS IN 2014 TIMEFRAME WE
DETERMINED THERE WAS A NEED FOR
ABOUT $160 MILLION OF
EXPENDITURE ON TOP OF THE
ACQUISITION OF THE PROPERTY. SO
THAT HAS ONLY GROWN SINCE THEN.
I DON'T HAVE AN ESTIMATE OF
WHAT THE COST TO DEVELOP A NEW
NORTH PRECINCT ON THAT PROPERTY
WOULD BE, BUT IT IS SIGNIFICANT.
>> EXACTLY. THANK YOU DIRECTOR
EDER. COUNCILMEMBER SAKA.
>> THANK YOU, MR. CHAIR, AND I
THANK YOU, DIRECTOR EDER FOR
THIS PRESENTATION TODAY. THIS
MATTER BEFORE US INVOLVES ONE
SPECIFIC BOND AS PART OF THE
CITY'S BROADER EXERCISE OF ITS
BONDING AUTHORITY, WHICH WE KNOW
IS THE ABILITY -- IT'S A
LENDING MECHANISM. IT'S NOT NEW
REVENUE. IT'S ESSENTIALLY AN
OLDER, WISER VERSION OF
OURSELVES AS THE CITY PAYING FOR
A LONGER TERM DURABLE INVESTMENT
IN THE FORM OF TYPICALLY A
CAPITAL IMPROVEMENT PROJECT OF
SOME SORT THAT OUR YOUNGER
VERSION OF OURSELVES TODAY COULD
INITIATE AND START TO BUILD.
TYPICALLY, THOSE PROJECTS WILL
BE DURABLE ENOUGH THAT FUTURE
TAXPAYERS CAN STILL BENEFIT FROM
THEM LONG AFTER THE BOND ITSELF
IS PAID. SO THIS MATTER BEFORE
US -- RELATES TO ONE SPECIFIC
BOND, BUT I WOULD BE CURIOUS TO
BETTER UNDERSTAND. WOULD YOU
MIND FOLLOWING UP WITH MY OFFICE
WITH AN INVENTORY OF ALL OF OUR
OUTSTANDING BONDS? JUST HIGH
LEVEL INVENTORY OF ALL OF OUR
OUTSTANDING BONDS, CURRENT
DOLLAR AMOUNTS AND REPAYMENT
SCHEDULE? THAT WOULD BE VERY
HELPFUL. AND ALSO I NOTE THAT
THE FORTHCOMING TRANSPORTATION
FUNDING TASK FORCE TO LOOK AT
HOW THE CITY IS GOING TO
CREATIVELY FIND APPROPRIATE
FUNDING FOR THREE PRINCIPAL
ASSET CLASSES AND CATEGORIES FOR
TRANSPORTATION, BRIDGES, ROADS,
AND NEW SIDEWALKS, I IMAGINE
THAT THEY ARE GOING TO RECOMMEND
A BLENDED APPROACH THAT INCLUDES
THE CITY EXERCISING ITS BONDING
AUTHORITY TO BRING TO LIFE SOME
OF THOSE INVESTMENTS. SO JUST BE
CURIOUS TO BETTER UNDERSTAND THE
CURRENT LANDSCAPE WITH AN
INVENTORY OF ALL OF OUR
OUTSTANDING BONDS. THANK YOU.
>> HAPPY TO DO THAT,
COUNCILMEMBER.
>> THANK YOU, VICE CHAIR.
>> THANK YOU, CHAIR. I JUST
WANTED TO FOLLOW UP WHEN I ASKED
ABOUT DOES THE EXECUTIVE HAVE --
HAS THE EXECUTIVE IDENTIFIED A
USE FOR THIS SPACE? WAS NOT TO
SAY COUNCILMEMBER KETTLE THAT I
VERY MUCH SUPPORT AS I SAID
EARLIER, A NEW NORTH PRECINCT,
OR AN EXPANSION OF THE NORTH
PRECINCT. WE NEED CAPACITY
THERE. IT'S THE BIGGEST
PRECINCT IN THE CITY THAT
SERVICES THE D, 4, 5, AND PARTS
OF 6. SO THAT'S DEFINITELY
SOMETHING THAT I CAN SAY
COUNCILMEMBER MOORE AND I VERY
MUCH SUPPORT AND WE'VE TALKED
ABOUT IN THE PAST. I ACTUALLY
WOULD LIKE TO KNOW -- AND I
GUESS FORMALLY REQUEST HERE THAT
IF A USE OF THIS SPACE IS
IDENTIFIED BY THE EXECUTIVE,
I'D LIKE -- WE WOULD LIKE TO
KNOW SOONER RATHER THAN LATER.
SO THAT WE CAN BE INVOLVED IN
THOSE CONVERSATIONS BECAUSE I
KNOW SINCE 2014 THIS HAS BEEN
DIFFICULT, THE CONVERSATION
ABOUT THE NORTH PRECINCT BECAUSE
OF THE COST INVOLVED IN A NEW
PRECINCT, AND YOU KNOW, I DON'T
WANT TO GIVE UP ON THAT, AND I
WANT TO MAKE SURE THAT, YOU
KNOW, OUR PRECINCTS ARE, YOU
KNOW, RESOURCED, AND THAT WE ARE
SUPPORTING THE ABILITY TO
PROVIDE OUR CONSTITUENTS WITH
THE BEST PUBLIC SAFETY RESOURCES
THAT WE'RE ABLE TO PROVIDE. SO
ALL OF THAT TO SAY,
COUNCILMEMBER KETTLE, YES, IN
AGREEMENT, WHICH IS WHY I SAID
EARLIER, I SUPPORT THE USE OF
THIS SPACE AS A NEW NORTH
PRECINCT, AND ALSO I WANTED TO
KNOW IF AT THE CONCLUSION OF THE
-- THE DEBT SERVICE IF THERE WAS
AN IDENTIFIED -- A USE FOR THIS
SPACE OTHER THAN THE ORIGINALLY
INTENDED. THAT'S WHY I ASKED
THAT. SO I JUST WANT TO MAKE
SURE THAT AS WE'RE MOVING
FORWARD WITH THIS SPACE WE'RE
VERY CLEAR, LIKE I SAID EARLIER,
RATHER THAN LATER ON IF THERE'S
A DIFFERENT USE ANTICIPATED, OR
A SELL OF THE PROPERTY, IT WOULD
BE UNFORTUNATE FOR US TO FIND
OUT DURING A MEETING AFTER THE
FACT THAT YOU, THE EXECUTIVE IS
INTENDING TO SELL THE PROPERTY.
ESPECIALLY SINCE, I UNDERSTAND
WE HAVE A HUGE BUDGET DEFICIT
AND I THINK ALL THINGS ARE
PROBABLY ON THE TABLE, HAVING
WORKED UPSTAIRS AND I WANT TO
MAKE SURE THAT WE ARE GETTING
THAT KIND OF INFORMATION AS SOON
AS POSSIBLE. THANK YOU. THANK
YOU, CHAIR.
>> ABSOLUTELY. COLLEAGUES ANY
OTHER QUESTIONS ON THIS ITEM?
AGAIN, NO VOTES TODAY. JUST
BRIEFINGS. SEEING NO FURTHER
QUESTIONS THAT WILL END THIS
ITEM. I'LL GIVE A LITTLE BIT OF
A ROAD MAP OF HOW WE'RE MOVING
FORWARD. REALLY, THIS MEETING
KICKS US OFF INTO HEADING INTO
THE BUDGET PROCESS FOR THE
REMAINDER OF THE YEAR. BECAUSE
WE ARE TALKING ABOUT EXCEPTIONS
TODAY, WE ARE FINISHING LAST
YEAR'S BUDGET, SO WE ARE NOW
MOVING INTO NEXT YEAR'S BUDGET.
UP NEXT, WE'LL HAVE THE CARRY
FORWARD, SO THE MONEY FROM NEXT
YEAR'S BUDGET THAT WE'RE GOING
TO CARRY AS WELL AS THE
SUPPLEMENTAL BUDGET WHICH ADDS
FUNDS TO CERTAIN, AND HOPEFULLY
MINIMAL AMOUNTS OF PROGRAMMING.
WE'LL THEN HAVE THE FORECASTS
IN WHICH WE'VE ACTUALLY BASED
THE BUDGET FROM. WE HAVE THE
FORECAST LAST, THIS LAST APRIL.
IT'S REALLY FOR INFORMATIONAL
PURPOSES TO MAKE SURE THAT WE'RE
ABLE TO MAKE THE CHANGES WITHIN
THE YEAR THAT WE'RE IN, SHOULD
THEY BE NEEDED. THIS YEAR, THEY
ARE NEEDED. WE'LL THEN MOVE
INTO THE 2026 BUDGET IN THE FALL
OF 2025. WE HAVE MADE CHANGES TO
THIS COMMITTEE'S CALENDAR THIS
YEAR BECAUSE OF THE DOWNTURN
REVENUE FORECAST FROM APRIL.
WE'RE TAKING ADDITIONAL REVIEW
OF THE CARRY-FORWARD LEGISLATION
AS WELL AS WE'RE ADDING TIME TO
REVIEW THE FORECAST. THE CURRENT
BUDGET SITUATION AND ACTIONS
THAT ARE NEEDED THIS YEAR IN
2025. OUR NEXT MEETING WILL BE A
SELECT BUDGET COMMITTEE WHERE
ALL MEMBERS WILL BE PRESENT. SO
I'LL BE ASKING FOR YOUR HELP AS
FINANCE COMMITTEE MEMBERS TO
SHARE INFORMATION THAT WE ARE
TAKING UP HERE IN THIS
COMMITTEE, BECAUSE WE'LL BE
TAKING VOTES IN THE NEXT SELECT
COMMITTEE. WE'LL ALSO -- WE'VE
CHANGED THE CALENDAR FOR THE
SELECT COMMITTEE TO REALLY FOCUS
ON REFORM IN TWO WAYS. PROCESS
AND CONTENT. WITHIN THE PROCESS
WE'LL HAVE A BRIEFING ABOUT THE
SUMMER AND FALL BUDGET CALENDAR.
THIS DOES INCLUDE CHANGES FROM
LAST YEAR. WE'LL BE ADDING BACK
STEPS INTO THE BUDGET PROCESS
THAT WERE USED IN THE PAST, BUT
THAT I DID NOT INHERIT, SO I'M
GOING BACK AND SAYING THE WAY IT
WAS DONE BEFORE, I'D LIKE TO
BRING THAT BACK. SO WHAT THIS
ADDS IS ANOTHER MOMENT FOR
COUNCILMEMBER PROPOSES, SO
EVERYONE CAN GET EVERYTHING OUT
ON THE TABLE. WE'LL ALSO HAVE
IN THE SELECT BUDGET COMMITTEE
ON JUNE 4th, BUDGET REFORM
CONTENT. WE'LL RECEIVE A
BRIEFING FROM DIRECTOR EDER,
WHO'S HERE WITH US TODAY ON THE
CURRENT BUDGET SITUATION THIS
YEAR IN 2025 AND THE REFORM
MECHANISMS THAT HE'S ALREADY
BEEN TALKING ABOUT TODAY FOR THE
REMAINDER OF THIS YEAR. WE'LL
ALSO HAVE A VOTE ON THE
EXCEPTIONS BILL THAT WE WERE
BRIEFED ON TODAY, AND HAVE A
VOTE ON THE BOND REPAYMENT
ORDINANCE THAT WE WERE BRIEFED
ON TODAY. WE'LL ALSO HAVE A
POTENTIAL BRIEFING ON THE BUDGET
REFORM SLIDES. I HAD ORIGINALLY
THOUGHT TO TAKE UP A FAIR AMOUNT
OF THIS COMMITTEE MEETING ON THE
STATEMENTS OF LEGISLATIVE
INTENT, FOCUSED ON BUDGET REFORM
FROM LAST YEAR. HOWEVER, SOME OF
THESE ISSUES ARE A BIT MORE
PRESSING. WE WILL ALSO HAVE A
PETITION BRIEFING ON THE CARRY
FORWARD LEGISLATION. IF WE ARE
ABLE TO DO THAT, WE MAY BE
VOTING ON IT IN FINANCE. SO I
JUST WANT TO PROVIDE THAT ROAD
MAP FOR THE NEXT ESSENTIALLY
MONTH OF OUR COMMITTEE WORK AS
WE'RE STARTING TO RAMP UP IN
THE AMOUNT OF STUFF THAT WE'RE
DOING. ANY QUESTIONS ON THAT
COLLEAGUES?
>> YEAH. VICE CHAIR.
>> CHAIR, CAN I SAY, THANK YOU,
CHAIR. WHEN WE'RE LOOKING AT THE
CARRY FORWARD LEGISLATION, ONE
THING DIRECTOR EDER, THAT I'D
BE REALLY INTERESTED IN KNOWING
IS GIVEN THE BUDGET DEFICIT AND
WHAT WE'LL HAVE TO DO IN THE
FALL, HOW YOU'RE TAKING THAT
INTO CONSIDERATION AS YOU'RE
PROFFERING YOUR CARRY FORWARD
PROPOSALS? IT WOULD BE
UNFORTUNATE NOT TO GIVEN WHAT WE
KNOW IS HERE, NOT COMING, BUT
HERE, THAT WE WOULDN'T TAKE
THAT INTO CONSIDERATION AS PART
OF THE CARRY FORWARD
LEGISLATION. SO JUST FORMALLY,
AND FOR THE RECORD, REQUESTING
THAT WE KNOW HOW YOU'RE TAKING
THAT INTO CONSIDERATION WHEN
YOU'RE BRINGING FORWARD THAT
CARRY FORWARD PROPOSAL. THANK
YOU, CHAIR.
>> THANK YOU, VICE CHAIR. THAT
IS EXACTLY WHY WE'RE BRINGING
DIRECTER EDER BACK NEXT TIME,
AND WHY WE HAD ORIGINALLY
SCHEDULED TO HAVE THE CARRY
FORWARD LEGISLATION ACTUALLY
VOTED ON TODAY. SO THAT SCHEDULE
HAS SLIPPED FOR GOOD REASON.
COUNCILMEMBER SAKA.
>> THANK YOU, MR. CHAIR, AND THE
APPROACH THAT YOU OUTLINED A
MOMENT AGO MAKES SENSE FROM MY
PERSPECTIVE, AND THE TIMELINE AS
WELL. FOLLOW UP QUESTION TO MY
EARLIER QUESTION AND COMMENTS,
SO THANK YOU IN ADVANCE,
DIRECTOR EDER FOR AGREEING TO
REVERT BACK WITH AN INVENTORY OF
OUR OUTSTANDING BONDS. BUT JUST
CURIOUS. AT A HIGH LEVEL, TAKING
A STEP BACK AT A VERY HIGH
LEVEL, WE OBVIOUSLY IN THE CITY
OF SEATTLE, WE DON'T WANT TO BE
A SPEND THRIFT, WRITING CHECKS
THAT WE POSSIBLY COULD NEVER
CASH. THAT'S WHY I'M MINDFUL
OF WHAT'S OUTSTANDING AND WHAT
MIGHT POTENTIALLY BE SUBJECT TO
FUTURE ASKS, ULTIMATELY OF THE
VOTERS ON A GOING FORWARD BASIS.
BUT ARE THERE STATE MANDATES OR
CAPS, LIMITS THAT GOVERN OUR
ABILITY TO ISSUE BONDS IN ANY
WAY? AND IT'S FINE IF YOU HAVE
TO FOLLOW UP OFFLINE, AND TO THE
EXTENT THERE ARE LIKE HARD CAPS
FOR EXAMPLE, WHETHER DOLLAR OR
PERCENTAGE OF BUDGET, WHATEVER
THESE CAPS MIGHT BE, CURIOUS
WHETHER BASED OFF OUR CURRENT
TOTAL OUTSTANDING BONDS WHERE WE
FIT IN THAT. IF YOU HAVE ANY
ADDITIONAL COMMENTS, PLEASE
SHARE, BUT HAPPY TO HAVE YOU
FOLLOW UPOFF LINE AS WELL.
>> I THINK I WILL, FOR A
SUBSTANTIVE RESPONSE TAKE YOU UP
ON THAT OFFER TO FOLLOW UP. I
WILL SAY THAT THE CITY HAS
ESTABLISHED A NUMBER OF
FINANCIAL POLICIES THAT WE'VE
RELIED UPON FOR MANY YEARS AND
THAT HAVE CONTRIBUTED TO -- ON
THE PLUS SIDE, THEY HAVE
CONTRIBUTED TO OUR TOP, TOP, TOP
TRIPLE-A BOND RATING, WHICH
GIVES US ACCESS TO THE CHEAPEST
DEBT THAT MUNICIPALITIES HAVE
ACCESS TO. THE DOWN SIDE OF THAT
IS, IT DOES LIMIT THE NUMBER OF
BONDS THAT WE CAN ISSUE, TO
ENSURE BOND HOLDERS THAT WE ARE
GOING TO BE ABLE TO REPAY THOSE,
THAT DEBT SERVICE OVER THE
DECADES THAT THE DEBT SERVICES
DO. WHICH IS A LIMITED FACTOR IN
TERMS OF HOW MUCH MORE DEBT WE
CAN TAKE. THOSE ARE WITHIN THE
CITY CONTROL, BUT THEY ALSO
INFLUENCE ULTIMATELY THE CHEAP
MONEY THAT WE HAVE ACCESS TO,
BECAUSE PEOPLE TRUST THAT WE
HAVE VERY SOLID FINANCIAL
POLICIES.
>> THANK YOU, SO BECAUSE OF OUR
INTERNAL ISTENCE OF SOME OUTSID
EXTERNAL STATE REGULATIONS, WE
HAVE A STELLAR CREDIT RATING,
WHICH IS GREAT. BUT YEAH, PLEASE
DO FOLLOW UP. THANK YOU FOR THE
INITIAL RESPONSE. PLEASE DO
FOLLOW-UP OFFLINE.
>> AND I'LL ADD BECAUSE
DIRECTER CARNELL IS GOOD AT HER
JOB. WITH THAT, AGAIN, THE
COMMITTEE, OUR NEXT MEETING IS A
SELECT COMMITTEE MEETING. WE'LL
HAVE A BRIEFING ON THE CURRENT
BUDGET REFORM IN 2025, VOTE ON
EXCEPTIONS, VOTE ON BOND
REPAYMENT, AND MAY HAVE
INFORMATION ON THE BUDGET CARRY
FORWARD SLIDES. THIS WILL BE A
PACKED COMMITTEE. I WILL BE
ASKING EACH COUNCILMEMBER TO
RECEIVE BRIEFINGS AHEAD OF THAT
SELECT COMMITTEE. I WILL ALSO BE
ASKING COLLEAGUES FOR YOUR HELP
SEWING THE FABRIC OF THE FINANCE
AND SELECT COMMITTEES TODAY.
WITH THAT, THIS DOES CONCLUDE
THE WEDNESDAY, MAY 21, 2025
FINANCE NATIVE COMMUNITIES AND
TRIBAL GOVERNMENTS COMMITTEE.
OUR NEXT MEETING IS WEDNESDAY,
JUNE 18, 2025. ANY FURTHER
BUSINESS COME BEFORE THE
COMMITTEE BEFORE WE ADJOURN?
SEEING NONE, WE ARE ADJOURNED.
THANK YOU.