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From YouTube: September 12, 2018 Budget Committee
Description
Budget Overview II: long-range projections
A
Good
morning,
I'd
like
to
call
to
order
our
city's
Budget
Committee
meeting
today
with
me
on
the
dais
is
my
vice-chair
Steve
Fletcher
councilmember
Steve
Fletcher,
we're
also
joined
by
councilmembers,
Reich
and
Schrader,
and
I
know
that
there
are
others,
because
I
see
people
stuff
filtering
up
here.
That
will
join
us
as
we
move
along,
but
just
to
start
because
we
have
a
lot
of
information
that
we
want
to
cover,
or
the
point
of
today
is
just
part
two
of
long-range
budget
projections
and
receiving
that
information
from
our
budget
director
mica
interval.
A
B
Madam
chair
and
members,
thank
you
for
having
me
back.
We
had
a
great
robust
conversation
I
thought
a
few
weeks
ago
and
that
really
focused
on
what's
included
in
the
mayor's
recommended
budget
specifically
for
next
year,
and
so
this
presentation,
I
thought,
takes
some
time
and
walk
you
through
how
those
decisions
for
next
year
play
out
in
terms
of
the
the
longer-range
financial
impacts
for
the
city.
Thank.
A
You,
and
just
as
you
start
I
want
to
just
remind
my
colleagues
I
think
we
had
some
really
good
conversation
in
the
first
budget
meeting
and
I
welcome
you
in
in
in
inviting
questions
as
he
goes
along
and
making
this
more
conversational
in
nature.
So
thank
you.
Thanks
for
joining
us
come
some.
Others
were
Sami
and
Cunningham
great.
B
B
So
if
you
look,
if
you
happen
to
have
your
budget
books
with
you
and
I,
believe
a
number
of
you
do
on
page
seven
of
that
document,
there's
a
numbers
rich
page
that
can
be
a
little
bit
intimidating.
So
what
I'd
like
to
do
is
walk
through
that
five-year
financial
direction
line
by
line
and
to
help
you
understand
not
only
what
makes
up
those
lines
but
also
what
the
assumptions
are
behind
them.
B
I
think
it's
important
to
note
that
not
only
are
the
policy
decisions
that
you're
making
day-to-day
impacting
these
numbers,
but
also
when
you're,
setting
the
the
five-year
financial
direction
and
then
adopting
it
with
the
budget.
At
your
end,
you'll
have
an
opportunity
to
foreshadow
some
of
those
policy
choices,
so
the
first
category
that's
listed
is
franchise
fees,
and
these
are
fees
that
are
assessed
as
a
percentage
of
gas,
electric
and
cable
bills.
B
We
assume
a
1%
increase
per
year
for
this
category
and
our
revenues
are
affected
by
not
only
what
the
rate
is
that
we
charge
as
a
percentage
of
each
bill,
but
also
the
size
of
the
bills
themselves,
and
so
that
percent
per
year
really
is
assuming
that
over
time,
the
the
rate
that's
assessed
as
a
percentage
won't
necessarily
change,
but
the
bills
themselves
will
grow.
I.
B
Think
when
thinking
about
franchise
fees,
a
lot
of
folks
look
to
the
the
gas
and
electric
portion,
and
certainly
last
year,
council
adopted
an
increase
to
the
the
gas
and
electric
franchise
fees,
but
also
there
are
those
same
fees
assessed
to
cable
as
it's
2018
and
we
go
into
different
types
of
media
with
high-speed
fiber
and
cord
cutting
that
occurs
in
many
households
might
include
it.
I
think
we
may
see
a
bit
of
a
decline
in
that
cable,
TV
new
TV
revenue
I
do.
A
Just
want
to
point
out
for
those
of
us
that
don't
have
the
budget
book
handy
or
who
want
to
just
always
have
the
budget
book
online
and
get
used
to
where
to
look
at
it.
Casey
Carl
just
sent
us
all
an
email
that
brings
you
directly
to
the
budget
link.
So
you
can
go
right
to
that
page
that
make
us
booked
Thank.
B
260
percent
of
the
license
and
permanent
revenue
comes
from
construction
permits
that
you
know
we're
in
our
sixth
year
or
2017
was
our
sixth
year
of
billion-dollar
construction.
The
economy
continues
to
go
gangbusters
I
think,
as
we
from
a
bit
of
a
conservative,
take
on
making
sure
that
we're
not
planning
on
revenues
that,
as
the
economy
slows,
will
see
slowed
construction.
B
B
Licenses
and
permits
collect
revenues
associated
with
our
regulatory
activity,
charges
for
services
or
more
optional
things
that
folks
engage
the
city
folks
reach
out
to
the
city,
for
so
utility
cuts
and
connections.
As
a
category
that
you
see
here,
development
and
loan
origination
as
well,
but
the
the
largest
portion
you
see
here
in
charges
for
services
is
overhead
that
we
charge
from
the
general
fund
to
other
funds,
and
so,
when
you
think
about
and
that
it's
for
activity
that
the
general
fund
provides
on
behalf
of
those
other
funds,
so
think
about
the
finance
activity.
B
B
Again,
it's
a
minimal
1%
per
year
increase
is
assumed.
We
actually
are
seeing
less
fine
and
forfeit
revenue
in
the
general
fund
than
we
did
several
years
ago
and
that's
associated
with
the
introduction
of
parking
meters
that
can
be
paid
via
credit
card,
there's
a
lot
more
voluntary
participation
and
paying
for
your
parking,
and
so
we
see
less
fine
revenue
as
a
result,
and
so
I
think.
B
That's
that's
a
really
good
example
of
a
policy
change
where
I
wasn't
at
the
city
at
the
time,
so
I'm
not
sure
if
it
was
specifically
the
council
directing
Public,
Works
or
Public
Works,
taking
the
initiative
on
their
own,
but
that
action
had
a
direct
impact,
then
on
the
city's
financial
position
and
as
all
of
these
general
fund
revenues
are
not
dedicated
to
a
specific
department,
then
it's
important
to
recognize.
We
have
to
recover
that
revenue
somewhere
else.
A
B
Chair
those
that
is
a
great
question,
and
there
are
many
gradations
of
different
revenue
categories
that
we
have
within
our
chart
of
accounts
and
I'm,
not
familiar
with
each
one,
I'm
looking
to
see
if
anybody
any
audience,
maybe
and
I'm,
seeing
no
volunteers,
but
we
can
certainly
get
back
to
you
with
an
answer
on
that.
Thank.
A
B
B
So
the
next
category
you
see
is
special
assessments,
and
this
is
revenues
from
collected
from
properties
which
received
the
primary
benefit
of
the
service,
and
so
the
largest
category
there
of
Street
maintenance
is
folks
are
very
familiar.
This
is
actually
my.
The
street
in
front
of
my
house
was
resurfaced
the
summer
and
it
looks
great
and
I
will
be
seeing
an
assessment
on
my
property
tax
bill
to
pay
for
some
of
that
service,
and
so
the
the
philosophy
here
is
those
are
most
directly
benefiting
from
the
service
pay
for
it
through
a
property
tax
assessment.
C
B
Madame
chair
vice
president
Jenkins
I,
think
it
would
depend
on
each
individual
charge.
There
may
be
some
charges
for
which
the
the
full
cost
is
sent
to
is
recovered
through
special
assessments,
as
opposed
to
the
general
property
tax
levy.
So
we
do
in
the
case
of
street
assessments.
We
do
levy
for
bond
redemption.
So
when
we
borrow
to
do
construction,
some
of
it
then
is
paid
directly
via
property
tax
revenues.
But
then
we
also
in
our
capital
planning,
also
assume
some
bit
will
be
paid
by
special
assessments.
A
Just
want
to
interject
here
and
say
we
often
think
of
streets
in
terms
of
special
assessments,
but
a
lot
of
special
assessments
are
things
that
residents
can
partition
into
right,
so
whether
it's
a
special
Service
District
of
property
owners
in
a
commercial
area
that
want
to
band
together
and
pay
for
a
benefit
or
whether
it's
something
that
it
might
that
has
happened
in
the
past
or
when
residents
band
together
and
they
want
their
own
street-level
lighting.
They
can
assess
in
when
we
don't
already
do
that
as
the
city
on
their
street
speed.
A
B
Thank
you,
madam
chair
very
well
said
so.
We
spoke
at
length
about
local
government
aid
last
time.
I
was
here
and
it's
a
very
healthy
portion
of
our
city's
general
fund
budget.
82%
of
what
we
received
from
the
state
is
local
government
aid
into
the
general
fund.
But
then
we
also
do
receive
a
number
of
other
aids,
such
as
aid
for
our
pensions.
B
We,
as
that
these
revenues
will
be
flat.
We.
This
is
an
area
that
we
don't
have
direct
control
over
at
the
city,
though
we
do
certainly
have
an
ability
to
influence
the
state,
and
so
this
is
an
area
where
the
more
wheaton
more
dollars
in
time
that
we
spend
lobbying
at
the
state
capitol.
Then
that's
a
policy
decision
that
can
influence
up
or
down
our
our
state
aid
revenues
and
so
just
again
something
to
keep
in
mind,
though
it.
B
Our
interest
earnings
I
also
talked
about
a
few
weeks
ago,
and
in
that,
though,
they
are
higher
this
year
and
we're
expecting
higher
returns
in
2019
than
we
have
seen
in
previous
years.
For
the
2018
budget,
we
had
budgeted
three
million
dollars
in
interest
earnings.
Since
then,
we've
seen
a
number
of
increases
to
the
two
interest
rates
from
the
Fed
in
Washington
DC,
and
so
really
that's
that's
the
primary
driver
of
these
additional
interest
earnings
for
2019.
B
If
we
do
see,
if
we
have
revenues
in
excess
of
four
million,
then
those
dollars
will
fall
to
the
bottom
line
of
the
general
fund
and
so
they'll
be
available
for
use
for
one-time
items
or
merely
to
support
the
the
contingency
that
sort
of
rainy
day
fund
that
we
hold
in
the
general
fund,
but
from
a
standpoint
of
planning
for
what
we
can
pay
for
in
the
future.
We
do
recognize
that
eventually
the
economy
will
change.
We
may
see
another
reduction
in
interest
rates.
B
So
then,
the
last
line
you
see
there,
one
of
the
last
lines
that
you
see
in
the
five-year
financial
direction
is
other
miscellaneous
revenues,
which
is
always
a
scary
category,
and
this
is
just
various
small
amounts
from
across
the
enterprise
different
functions
that
we
perform.
That
don't
neatly
fall
from
a
chart
of
accounts
standpoint
and
to
the
other
activities
that
we
perform.
I
think
maybe
one
of
the
items
that
stands
out
on
that
pie
chart
is
County
state
aid
and
so
similar
to
the
municipal
state
aid
that
we
receive
for
working
on
city
roads.
B
D
Thank
you,
madam
chair
I
was
just
curious.
If
we
can
go
back
to
the
previous
slide,
we
have
it.
Anticipated
is
flat
around
four
million
dollars,
but
for
2019
we
have
it
at
six
million
dollars
and
I'm
wondering
what's
special
about
2019.
Why
are
we
making
a
lot
more
money
on
interest
than
what
we're
projecting
into
the
future?
So,
madam.
B
Chair
councilmember,
Fletcher
I
think
that's
so
what's
special
about
2019
is
we
have
more
certainty
around
and
I'll
say
more
certainty,
not
absolute
certainty
around
what
will
happen
and
so
recognizing,
where
interest
rates
are
now
and
not
we,
we
don't
have
he
communists
on
staff.
Here
at
the
city,
though,
we
do
engage
some
outside
investment
partners.
E
B
A
F
Madam
chair
councilmember,
Gordon
C,
invests
in
my
convention,
boring
low
risk
statutorily
mandated
investments.
Those
include
Treasuries
include
what
are
called
agencies
which
are
essentially
pooled
mortgages
that
are
indirectly
guaranteed
by
the
federal
government
and
rated
triple-a.
We
invest
in
bank
CD's,
either
under
two
hundred
and
fifty
thousand,
which
we
don't
have
it
I,
don't
think
right
now,
any
or
collateralized,
meaning
that
a
bank
has
to
set
aside
enough
security
to
satisfy
state
law.
F
The
reason
we've
seen
this
bump
is
the
same
reason
that
when
you
buy
a
CD,
if
you
choose
to
do
that,
that
we're
before
you
are
earning
like
point
two,
five
percent
now
with
the
Federal
Reserve
raising
short-term
interest
rates,
the
cash
that
we
have,
especially
our
operating
cash,
which
tends
to
go
up
and
down
with
the
receipts
of
our
property
tax
revenues
and
state
aides.
A
couple
of
times
a
year
has
now
gone
from
that,
like
0.25
or
14.5
percent
to
over
2
percent.
I.
F
Think
the
point
is
that's
good
for
maybe
a
year,
but
if
we're
concerned
about
recessionary
influences
that
might
drop
interest
rates
in
the
future,
that
we
will
be
going
back
down
to
that
point.
5
percent.
So
that's
the
risk
we
take
in
this
variability
and
that
we
don't
have
any
guarantees.
We
also
invest
very
short,
meaning
that
our
investments
typically
have
a
duration
of
less
than
three
years
and
some
cases
a
few
months
and
so
that's
again
part
of
the
variability.
But
those
are
the
types
of
investments
that
we
have.
That
answers
your
question
in.
E
F
F
Think
based
on
the
response
to
the
staff
direction
that
you
had
I
think
authored
a
couple
of
years
ago,
and
that,
pursuant
to
our
discussions,
we
have
greatly
diversified
the
places
that
we
invest
money
we
had
previously
only
been
working
with
for
investment
advisors,
which
were
primarily
a
large
banks,
and
so
the
promise
that
we,
as
a
finance
department,
made
to
you
as
a
council,
was
to
start
working
with
smaller
banks.
So
we
did
a
request
for
proposals.
F
We
are
now
working
with
places
like
Merchants,
Bank
and
Bremer
bank,
which
were
not
previously
involved
in
our
short-term
investments.
We
are
also
working
with
more
local
brokers
and
not
just
with
large
banks
and
so
I
think.
Our
objective,
based
on
counsel
counsel
direction,
was
to
create
that
diversity
so
that
we
were
not
just
investing
in
large
banks
and
I
think
the
goal
that
our
staff
has
internally
as
to
make
sure
that
less
than
half
of
our
operating
cash
is
with
larger
institutions
and
smaller
amounts
would
be
with
smaller
institutions.
F
We
would
certainly
welcome
any
other
suggestions.
It's
a
hope.
I
know
the
mayor
has
suggested
in
his
recommended
budget.
Five
hundred
thousand
dollars
of
funding
for
village
trust
cooperative,
which
is
you
know,
a
city
potentially
going
to
become
a
credit
union
which
then
we
could
turn
around
and
buy
CDs
for
that
kind
of
organization
as
well.
I
was
also
disappointed
that
a
number
of
local
banks
did
not
respond
to
our
RFP,
and
so
we
did
not
reject
any
local
banks
off
of
the
RFP.
F
We
accepted
them
if
they
were
qualified
to
meet
the
state
standards,
and
so
you
know
that
was
something
else
that
we
will
continue
to
work
with
is
building
those
relationships
with
local
institutions.
We
are
not
an
easy
place
to
do
business
with
we
require
insurance,
we
require,
you
know
other
levels
of
cooperation
and
standards
that
they
don't
see
with
other
private
entities
or
with
other
local
governments,
and
so
that's
my
suspicion
and
we
did
do
some
follow
up
with
those
banks
as
well.
E
I
appreciate
that
and
I
appreciate
the
detail
and
the
work
that
we've
done
to
try
to
diversify,
that
I
think
partly
what
I'm
getting
at
is
responsible
investments
I
think
the
public
is
expecting
us
not
necessarily
to
be
investing
in
the
military
industrial
complex
at
the
federal
level
or
investments
that
are
going
overseas
or
fossil
fuel
investments.
There's
some
of
these
banks
and
all
of
those.
E
A
Thank
You
councilmember
I
I,
do
want
to
point
out.
We
did
have
a
very
long
presentation
and
conversation
about
this
exact
topic.
I
feel
like
it
was
a
full
of
years
ago
and
I've
just
asked
my
staff
to
please
find
that
and
I
will
certainly
make
that
available
and
send
it
out
to
all
councilmembers
for
people
who
want
to
dig
into
this
and
have
a
little
bit
more
information
about
it.
If,
after
that,
there's
more
discussion
that
is
wanted,
then
I
think
that
can
just
take
place.
Offline,
great
sorry,
council,
president
bender
thank.
G
You,
madam
chair
I,
I,
believe
we
also
authorized
finance
staff
to
invest
a
part
of
this.
These
funds
into
naturally
occurring
affordable
housing,
as
kind
of
like
a
win-win
situation,
where
we
would
be
able
to
use
that
method
to
invest
our
reserves,
funds,
but
also
meet
the
city
goal
of
preserving,
affordable
housing
and
I.
Think
I,
don't
think
that
has
been
utilized
yet,
but
we
did
now
just
hire
the
housing
stability
specialists
that
the
council
had
approved
in
last
year's
budget.
G
A
F
Council
president,
thank
you
for
raising
that
you
were
exactly
right
and
to
invest
so.
Agencies
are
pooled
mortgages
and
we
work
directly
with
Freddie
Mac
pursuant
to
council
direction,
to
invest
directly
in
a
single
mortgage.
That
would
be
a
naturally
occurring.
Affordable
housing
would
still
be
guaranteed
by
the
federal
government,
but
it
requires
both
more
work
on
part
of
Frederick
and
our
staff,
but
we
have.
We
can
only
do
undertake
that
investment
when
we
are
successful
in
supporting
an
organization
to
buy
that
property.
We've
come
close
a
couple
of
times.
F
We've
actually
worked
right
up
to
the
time
giving
quotes
on
interest
rates,
but
they
have
not
been
the
lowest
or
I
should
say
the
highest
bidder
on
a
piece
of
property
they
being
those
would
use
that
program,
but
that's
another
example
of
trying
to
target
our
investments.
As
councilmember
Gordon
was
mentioned,.
B
So
then,
we
also
received
some
transfers
into
the
general
fund
on
a
recurring
basis,
so
the
largest
portion
here
85%
of
those
transfers
and
come
from
the
downtown
assets
fund.
So
this
is
the
financial
location
where
we
collect
our
Local
Option
taxes,
our
sales
taxes
and
entertainment
taxes,
and
then
we
do
transfer
from
that
downtown
assets
fund
a
portion
to
the
general
fund
so
about
20
million
dollars
in
entertainment
tax
each
year
and
about
ten
million
dollars
of
our
local
option.
Sales
tax
gets
transferred
to
the
general
fund.
B
The
sales
tax
specifically
is
used
for
capital
improvements
and
economic
development
and
that's
a
requirement
of
state
law.
The
entertainment
tax
has
more
flexibility,
and
so
that's
a
general
fund
revenue.
Just
like
many
others.
In
addition,
we
transfer
7
million
dollars
from
the
parking
fund.
Excuse
me:
7
million
dollars
from
the
parking
fund
to
the
general
fund,
also
to
support
general
fund
activities.
When
I
mentioned
that
our
our
citation
traffic
parking
citation
revenue
is
down.
B
One
way
that
we
have
helped
support
that
loss
of
revenues,
an
increase
in
transfer
from
the
parking
fund,
so
we
assumed
a
2%
growth
per
year.
On
the
transfer
and
from
downtown
assets,
and
that's
just
our
assumption
for
how
our
sales
tax
will
grow
over
time,
so
that,
as
a
percentage
of
total
sales
tax
we'll
be
keeping
that
constant,
transfer
constant
and
then
from
the
parking
fund.
We
assume
that,
unless
directed
by
a
council
and/or
the
mayor
that
will
maintain
that
transfer
at
7
million
dollars
annually.
Thank.
H
You,
madam
chair
I,
was
hoping
we
could
actually
go
back
to
the
last
slide.
First
so
and
I
apologize
if
I,
if
I
miss
this
explanation,
but
we're
seeing
about
a
three
million
dollar
decrease.
Is
that
what
you
were
speaking
of
with
the
automatic
being
able
to
pay
via
app
I
was
just
curious
as
to
why
we
were
seeing
that
three
million
dollar
cut
and
then
additionally,
for
the
transfers
in
for
that
significant
increase.
H
B
Chair
councilmember
great
questions,
so
it
you're
asking
questions
about
the
this
category
for
2018
as
compared
to
2019
just
for
folks
who
may
be
watching
at
home,
and
those
numbers
aren't
included
here
on
the
slide.
So
there's
a
three
million
dollar
decrease
in
revenue
in
that
other
miscellaneous
revenue,
category
from
2018
to
2019,
and
that
represents
the
one-time
revenue
we
received
in
2018
as
part
of
the
agreement
with
the
Super
Bowl
host
committee,
and
so
we
had
budgeted
that
in
this
line,
and
so
that's
why
it
doesn't
show
up
in
future
years.
B
It
was
a
one-time
one-time
deal
in
terms
of
the
transfers
in
the
large
increase
from
18
the
19
that
you're
seeing
is
also
one
time
and
that's
a
lot
of
the
it
represents
the
one-time
spending
that
we
had
talked
about
with
respect
to
affordable
housing
and
some
of
the
other
one-time
items
that
are
included
in
the
mayor's
recommended
budget
that
we
had
talked
about
at
length
a
few
weeks
ago.
So
those
those
were
again
one-time
transfers
in,
and
so
they
don't
show
up
these.
H
B
B
So
that's
a
relatively
quick
overview
of
the
sources
that
go
into
our
general
fund
and
how
we
expect
those
to
change
over
the
next
five
years.
At
this
point,
I'll
note,
you
should
have
said
at
the
beginning.
Another
reason
that
it's
important
for
us
consider
our
five-year
financial
direction
is
that
others
are
very
interested
in
the
fact
that
we
do
have
a
five-year
financial
direction.
B
So
when
we're
thinking
about
the
city's
creditworthiness
and
bond
rating
S&P
has
said
to
us
specifically,
the
fact
that
you
have
a
five-year
financial
direction
helps
give
us
confidence
in
that
triple-a
rating.
So
that's
just
an
another
talking
about
these
things
can
feel
like
eating
your
vegetables,
and
so
hopefully
that
helps
helps
make
it
a
little
bit
more
palatable.
B
So,
on
the
uses
side,
then
in
our
base
costs
we.
This
is
when
we
talk
about
our
current
service
level.
This
is
how
the
finance
department
see
projects
that
the
current
service
level
costs
will
increase
over
the
next
five
years,
and
so
the
assumptions
built
into
that
growth
are
3%
on
personnel
and
fixed
expense
and
I'll
just
underscore
the
use
of
the
term
personnel
there
as
opposed
to
salaries.
So
this
is
an
inclusive
of
our
fringe
benefits
as
well,
including
health
insurance,
which,
though
we
have
good
experience.
B
And
then
we
also
in
in
our
uses
plan
for
our
contingency
requirement
in
the
general
fund,
so
we're
required
to
carry
1%
of
expenditures
as
a
rainy
day
fund.
That's
separate
from
the
17%
of
the
general
fund
that
we
hold
in
in
unobligated
cash
reserve
to
make
our
or
payments
day-to-day,
so
in
the
other.
Ongoing
commitments
include
some
other
transfers
out
that
the
city
has
committed.
B
So
one
example
is
three
hundred
and
twenty
five
thousand
dollars
a
year
gets
transferred
from
the
general
fund
to
solid
waste
to
help
pay
for
some
of
the
graffiti
remediation
work
that
they
do
rather
than
duplicating
work
both
from
general
fund
sources
and
solid
waste,
everything's
done
by
the
solid
waste
team
in
Public
Works,
and
we
just
support
that
with
general
fund
dollars,
and
so
with
those.
The
reason
I
say
assumptions
vary
here
is
that
with
those
different
components,
there's
a
little
bit
different
expectation.
A
B
Then,
thank
you.
We
have
a
few
other
miscellaneous
uses,
so
we
spoke
last
time
about
the
Omnibus
pensions
bill
which
increased
the
city's
contribution
for
para
for
police
and
fire.
So
the
first
year
that
increases
for
2019
the
coming
budget
year,
we'll
have
another
increase
in
2020
the
parks
and
streets
plan.
This
represents
the
when,
when
that
plan
was
put
together,
there
was
a
financial
plan
that
accompanied
it,
and
so
this
is
the
planned
amount
from
the
general
fund
that
will
be
supporting
that
parks
and
streets
infrastructure,
work
and
then
the
last
three
lines.
B
There
are
future
investments
that
the
mayor
is
recommending
we
plan
for
in
coming
years.
So,
though,
we're
only
budgeting
for
2019
he's
saying
that
his
intention
for
2020
2021
out
through
23
is
to
add
some
additional
investments,
I
think
with
public
safety.
This
is
continuing
a
plan
to
increase
the
strength
of
the
sworn
police
force
with
the
body
cameras.
This
is
relates
to
the
plan
to
make
sure
that
all
frontline
officers
are
all
officers.
B
G
You,
madam
chair,
if
I
had
another
minute,
I
would
probably
answer
my
own
question,
but
are
these
additional
in
each
year
or
are
they
reflecting
ongoing?
So
was
the
7
under
$50,000
just
like
showing
up
each
year
because
it's
an
ongoing
expense
or
is
that
an
additional
on
top
of
itself
each
year?
Madam.
B
Chair
and
council
president,
that
is
a
very
good
question
and
when
I
was
reviewing,
my
slides
I
was
looking
at
this
slide
and
I
thought
you
know
there.
One
of
these
things
is
not
like
the
others.
So
in
the
case
of
the
parks
and
streets
capital
line,
those
are
the
one-year
investments
each
year.
The
other
dollars
that
you
see
are
ongoing
investments
that
will
be
made
starting
in
that
budget
year
so
using
pair.
B
G
One
more
question
about
that
which
was
I'm
specific
to
the
so
to
that
line.
So
this
is
because
we've
phased
in
the
parks
and
streets
funding,
particularly
shifting
in
that
year
to
more
moving
away
from
cash
and
other
sources
that
were
more
readily
available.
But
also,
could
you
remind
us
the
assumptions
about
NCR
and
neighborhood
organization
funding
that
are
reflected
here.
B
H
Cunningham,
thank
you,
madam
chair
I.
Just
wanted
to
get
some
clarification
around
two
things,
so
it
says
around
the
future
investments
public
safety
I
was
curious
as
to
how
that
was
defined,
and
additionally,
in
the
section
about
the
police
special
revenue,
it
says
that
that
funds
that
it
can
that
money
from
that
can
only
used
towards
Public,
Safety
and
so
I
was
just
curious.
How
Public
Safety
is
being
defined
in
the
budget.
In
this
context,.
B
Madam
chair
and
councilmember
I
I'm
a
little
bit
hesitant
to
speak
for
the
mayor
in
this
context,
I
think
that's
probably
a
better
question
for
him
in
terms
of
what
what
his
intentions
are
around,
that
additional
Public
Safety
investment
I
think
I'm
safe
in
saying
that
this
this
was
part
of
the
five-year
financial
direction
that
was
adopted
in
the
2018
budget,
and
he
wanted
to
continue
that
placeholder
for
additional
investments
in
public
safety.
What
they
are
I,
don't
know
specifically
to
the
question
about
the
police.
Special
revenue
fund.
D
Thank
you,
madam
chair,
so
I
just
want
to
make
sure
I
understand
the
so
these
are
additions
to
the
budget
that
are
then
ongoing.
So
if
we're
talking
about
$750,000,
then
in
2021
it's
1.5
million
more
than
2019
and
by
2023
we're
projecting
the
our
public
safety
spending
would
be
three
million
more
than
the
2019
level.
Is
that
correct?
Madam.
B
Chair
and
councilmember
Fletcher,
that's
absolutely
correct
in
every
case,
except
the
parks
and
streets
capital
line
right
in
that
parks
and
streets
capital
line.
Those
are
just
a
one-time
notes.
Okay
and
I'll
also
note
that
there's
additional
spending
for
parks
and
streets
capital
beyond
these
amounts.
This
is
just
the
general
fund
commitment
plan
to
general
fund
commitment.
B
So
in
terms
of
the
property
tax
levies,
then,
at
the
in
the
bottom
third
of
the
financial
five-year
financial
direction,
each
the
assumptions
behind
each
levy
increase
are
different
and
that's
simply
because
the
the
nature
of
the
the
spending
and
the
cost
drivers
for
each
levy
are
a
little
bit
different
and
the
drivers
influence
the
assumption.
So
in
the
general
fund.
The
assumption
is
that
you
know-
and
this
is
really
based
on
our
assumed
level
of
spending
for
the
general
fund.
B
Something
to
think
about
is
what,
where
do
we
want
to
go
with
our
revenue
mix
of
the
city
and
what
sort
of
assumptions
do
we
want
around
the
property
tax
levy
change
from
year
to
year?
The
park
board,
our
assumption,
that's
included
in
the
five-year
financial
direction,
is
a
four
percent
annual
increase
and,
at
this
point,
I
need
to
reference
last
presentation.
B
I
think
I
may
have
indicated
that
the
park
board
had
agreed
through
the
parks
and
streets
plan
that
four
percent
was
there,
what
they
would
need
annually
for
an
increase
in
their
operating
levy
and
the
two
are
actually
separate.
So
through
the
the
parks
and
streets
deal
there
wasn't
an
agreement
on
the
increase
to
the
levy.
Four
percent
is
simply
what
they
had
informed
us.
Their
assumption
around
their
need
would
be
moving
forward
if
they
were
to.
Let
us
know
that
they
thought
they
needed
more
than
four
percent
moving
forward.
B
Those
are
both
defined
by
those
independent
boards
needs
much
like
the
park
board.
Tra
the
Teachers
Retirement
associations
fixed
based
on
statute
and
then
our
assumptions
around
the
library
debt
levy
in
the
new
public
service
building,
or
we
assume
that
that
level,
the
needed
property
tax
levy
for
those
items
as
fixed
and
that'll
be
based
on
the
debt
schedule
associated
with
the
debts
that
we
incur
having
heard
and
will
incur,
and
so
finally,
we
get
to
the
property
tax
levy
forecast
and
at
the
the
bottom.
B
Two
lines
of
this
chart
show
not
only
what
the
projected
levy
is,
but
then
the
increase
from
the
prior
year,
so
the
five
year
financial
direction,
as
proposed,
includes
an
assumption
that
in
2020,
the
property
tax
increase
would
be
six
point:
zero,
five
percent
in
order
to
maintain
current
service
levels.
2021,
seven
point
three
six
percent
so
now
is
when
we
get
to
the
council
presidents
question
about
NCR
and
neighborhoods.
B
So
in
that
2021
budget
year
is
when
the
consolidated
TIF
district,
which
funds
the
neighborhood
organizations
in
the
NCR
departments
that
consolidated
TIF
district
comes
offline,
and
so
that's
about
14
million
dollars
of
revenue
annually.
This
plan
assumes
seven
million
dollars
will
go
towards
the
parks
and
streets,
and
you
saw
that
rake
here
in
this
line.
The
change
from
2020
to
2021
that
seven
million
dollar
increase
then
drives
the
the
property
tax
levy,
needed
property.
B
Tax
levy
increase
to
seven
point
three:
six
absent
any
reductions
in
spending
or
other
revenues
that
come
in
the
five
year.
Financial
direction
does
not
at
this
point
in
time
include
any
assumption
around
funding
of
either
the
NCR
department
or
the
neighborhood
organizations
themselves.
So
if
there,
if
council
mayor,
want
to
include
that
and
sub
in
the
general
fund
levy
for
what's
currently
being
collected
through
TIF,
then
it
would
be
another
approximately
two
percent
on
the
on
that
levy.
So
around
nine
percent
you
know
I
think
there.
B
There
are
a
lot
of
policy
questions
for
you
to
grapple
with
again.
This
would
be
the
financial
implications
of
those
what
is
reflected
here
and
so
there
it's
important
to
note
that
with
the
consolidated
TIF
district
going
offline-
and
we
talked
about
the
the
absolute
percentage
increase
for
property
taxes,
but
then
we
also
talked
about
a
feels
like
factor.
So
if
there's
less
property
tax
being
collected
for
the
TIF
district
and
more
property
tax
being
collected
in
the
general
fund,
then
the
feels-like
factor
could
be
zero.
B
If
those
two
are
equal
and
so
I
think
the
it'll
just
be
important
for
the
city
to
communicate
with
residents
that
what
exactly
is
going
on
here
and
and
how
less
is
being
collected
in
one
it
used
the
term
pot,
but
in
one
pot
of
money
and
more
in
another
pot
and
how
that
impacts.
The
property
tax
statement
itself-
I,
don't
know
at
this
point
mr.
Roth
has
anything
to
add
I'm,
seeing
nothing
or
if
there
additional
questions
council.
G
And,
at
the
same
time,
we
are
trying
to
like
go
on
in
the
backend
and
use
our
4d
program
and
our
financial
tools
that
we
have
available
to
us
to
purchase
properties,
to
help
finance
the
purchase
of
properties
to
give
tax
breaks
through
the
4t
program
in
order
to
stabilize
housing.
And
we
may
be
limited
by
state
law
and
how
we
can
work
on
this
issue.
But
I.
G
Just
I
think
it's
important
to
highlight
that
rental
properties
pay
a
higher
tax
rate
in
every
classification
of
housing
in
our
city
and
because
of
this
way
that
we're
assessing
the
value
of
properties,
rental
properties
are
seeing
very
significant
increases
in
taxes
I'm.
Not
so
I'm,
not
sure
the
solutions
are
quite
that
simple
I
know.
B
B
So
all
of
the
five-year
financial
direction
discussion
we've
had
relates
to
the
general
fund
and
the
activities
in
the
general
fund.
We
also
in
in
that
section
of
the
budget
book,
have
a
number
of
financial
plans
related
to
our
special
revenue
funds
as
an
internal
service
funds,
as
well
as
our
enterprise
or
utility
funds.
B
I
just
wanted
to
include
one
slide
here.
That
shows
what
the
proposed
or
anticipated
increase
will
be
each
year
for
utility
rates,
it's
between
3.7
and
4.2
percent,
which
represents
really
inflationary
costs
that
we're
seeing
and
I
think
that
in
their
in
their
discussion
in
the
coming
weeks,
Public
Works
has
some
information
about
utility
rates
as
well.
So
I
encourage
you
to
ask
them
questions
a
few
specific
ones
about
what
the
new
spending
will
go
to
beyond
those
just
merely
inflationary
pressures,
but
did
want
to
include
this
information.
B
For
you
here
as
sometimes
we,
we
certainly
think
a
lot
about
the
general
fund
and
property
taxes
as
well.
We
should
those
are
important,
but
there
are
also
other
pieces
of
the
city's
budget,
and
utilities
are
a
large
one.
So
that's
the
end
of
my
prepared
presentation.
If
anybody
has
any
additional
questions
happy
to
answer
those.
E
You
I
just
had
a
little
question
about
curiosity
about
the
property
tax
levy
slide.
I,
guess,
I
know
that
there's
also
a
housing
levy
that
the
public
housing
authority
can
propose
and
the
council
has
to
approve.
It
doesn't
appear
on
this
slide.
Who
would
the
practice
be
to
treat
that
more
like
a
School,
Board
levy
or
a
county
levy,
as
it's
all
separate
or
the
fact
that
it
doesn't
appear?
Does
that
mean
that
they
haven't
been
requesting
one?
And
it's
not
projected
and
they're?
Not
thinking
of
that,
madam.
B
E
A
There
are
some
really
useful
presentations
in
there
that
have
a
lot
of
information
in
them
for
those
that
are
interested
with
that,
and
since
we
do
have
a
quorum
of
council
members
here,
I'd
like
to
make
a
motion
to
receive
and
file.
This
part
two
budget
overview
concerning
the
long-range
projections,
all
those
in
favor,
please
say
aye
aye
that
carries
that
completes
our
business.
For
today,
this
meeting
is
adjourned.
Thank
you.