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From YouTube: May 8, 2018 Ways & Means Committee
Description
Minneapolis Ways & Means Committee Meeting
A
Good
afternoon,
everyone
I
will
call
this
regularly
scheduled
meeting
of
the
Ways
and
Means
Committee
to
order
Abdul,
Hassan
and
I'm.
The
chair
of
the
committee
and
I
have
with
me
councilmember
Cunningham
Johnson
Fletcher
on
Misano
and
council
vice
president
Jenkins,
and
we
have
a
quorum
of
the
committee
and
therefore
can
conduct
the
committee's
business
today.
On
that
consent
item
we
have
24
items
for
consideration
and
I'll
read
the
consent
item
and
they
are
as
follows.
A
Item
number
1
is
a
claim
of
Maryland
Talarico
item
number
2
is
a
legal
settlement
of
potential
claims
regarding
Nelson
Auto
Center
item
number
3
is
a
legal
settlement.
Alex
can
do
versus
city
of
Minneapolis
at
our
item.
Number
4
is
a
gift
acceptance
from
the
University
of
Chicago
Harris
public
policy
to
travel
related
expenses
to
attend
the
chief
financial
officer
forum
item
number
5
is
a
contract
with
Center
for
energy
and
environment
for
home
energy
squad
visits
and
energy
efficiency
loans.
Item
number
6
is
a
capital
long-range
Improvement
Committee
click
appointments
approving
the
council.
A
Appointments
of
rare
is
smiley
for
seat
number,
20
or
10
for
the
remainder
of
the
two-year
term.
Beginning
January,
1st
2017
and
ending
December
31st
2018
item
number.
Seven
is
a
transfer
of
the
director,
which
is
a
partnership
position
and
related
one-time
funding
from
the
city
coordinators
office
to
the
mayor's
office
item
number
8
is
a
contract
with
dynamic
imaging
systems
Inc
for
maintenance
of
photo
imaging
equipment
in
the
police,
Juvenile
Division
and
police
crime
lab
error.
A
Number
9
is
a
contract
with
chin
phone
chin,
finet
software
inc
for
providing
customer
letters
and
crew
work,
orders
for
Public,
Works,
solid
waste
and
recycling
department.
I,
don't
number
10
is
a
contract
with
government
jobs,
calm
for
the
applicant
tracking
software
systems
for
the
human
resources
HR
department,
I,
don't
number
11
is
the
travel
donation.
Acceptance
for
Anna
Peterson
step
up
director
ID
number
12
is
the
2018
urban
scholars
program
funding
from
partners
organizations
item
number
13
is
a
grant
from
the
Minnesota
Department
of
Human
Services
for
tobacco
compliance
checks.
A
Item
number
14
is
a
grant
from
the
Minnesota
Department
of
Health
for
home
and
visiting
services.
Item
number
15
is
the
Jordan
West
and
Willard
south
residential
street
resurfacing
project
approval
and
assessment
item
number
16
is
a
bid
for
60
61st
Street
West
Street
reconstruction
project
item
number.
17
is
a
bids
for
removal
of
branches
brush
weeds
and
grass
growth
I,
don't
number
18
is
bid
for
fine
aggregate
iron.
Number
19
is
a
bid
for
speciality
vegetation
management
at
storm
water
treatment
facilities.
A
I
remember:
20
is
a
5th
Street
northeast
and
Spring
Street
north
east
street
resurfacing
project
approval
and
assessment
item
number
21,
its
armitage,
South
Area
residential
street
resurfacing
project
approval
and
assessment
item
number
22
is
Oak,
Park
alley,
construction
project,
approval
and
assessment
item
number
23
is
a
project
labor
agreement
for
public
serve
for
the
public
service
building
project
and
I.
Don't
number
24
is
a
Civil
Service
Commission
appointments.
A
A
Right,
thank
you
very
much.
So,
council
member
food
item
number
7,
so
removing
item
number
7
discussion.
We
will
vote
on
those
items.
The
item,
let's
vote
on
the
items
that
the
rest
of
items
will
consent
and
I
move
approve
of
all
the
consent
items
apart
from
item
number
7,
all
those
in
favor
say
aye,
all
those
against
say,
nay,
and
those
items
have
been
approved.
Yes,
you
have
discussion
is
all
sorry.
C
Yes,
go
ahead.
Thank
You
mr.
chair
I
just
wanted
to
take
a
quick
moment
to
point
out
item
17,
very
excited
to
point
out
that
neon
property
maintenance
LLC
is
included,
which
is
a
Northside
based
business,
which
is
a
lot
of
small
North
siders
who
Northside
own
businesses
that
have
come
together
to
be
able
to
do
larger
projects
like
this,
so
I'm
just
excited
to
see
this
included
and
wanted
to
say.
Congratulations.
Thank.
A
You
thank
you
very
much
and
we
have
approved
all
the
consent
items
so
now
we're
going
to
move
to
our
discussion
items
and
included
item
number
seven.
We
have
three
discussion
items,
item
number,
25
and
26
as
well
as
item
number
seven.
So,
let's
start
with
item
number
seven
and
open
for
discussion.
Councillor
Fletcher.
B
B
Think
that
it's
an
important
it's
an
important
sort
of
decision
for
us
to
make,
particularly
because,
if
we're
creating
a
position
that
this
council
isn't
able
to
give
staff
direction
to,
we
want
to
make
sure
that
it's,
we
really
understand
the
definition
of
the
position
and
and
what
it's
going
to
be
doing.
And
we
understand
it's
related
to
housing.
B
We
have
a
Housing
Commission
and
we
have
Department
in
C,
that's
doing
housing
work,
and
so
we
want
to
make
sure
that
we
especially
understand
the
differences
between
the
mission
of
this
position
and
the
mission
of
the
workers
already
engaged
in
housing
work
throughout
the
enterprise.
And
so,
if
there's
anybody
here
from
the
mayor's
office,
who
is
prepared
to
speak
on
this
I'd
be
interested
in
just
getting
a
little
more
sort
of
on
record
conversation
about
what
the
intention
is
of
the
position.
What
we're
trying
to
accomplish
and
what
the
parameters
are.
A
D
D
B
D
B
D
Because
this
position
does
not
yet
live
in
the
mayor's
office
and
is
not
officially
a
position,
we
do
not
have
ie
a
candidate
selected
for
this
position.
It
is
an
appointed
position
for
the
mayor's
office,
and
so
there
are
a
number
of
folks
that
we
expect
fit
the
qualifications
and
we
will
be
connecting
with
them
once
we
move
to
a
place
where
this
is
actually
in
the
mayor's
office.
So.
B
D
C
D
Asami
councilmember
Cunningham.
This
position
has
been
vacant
in
the
coordinators
office
for
several
years.
You
could
speak
to
the
coordinators
office
for
the
reason
as
to
why
that's
the
case
and
the
reason
to
move
it
to
the
mayor's
office.
As
you
all
know,
this
is
a
high
priority
for
the
mayor,
affordable,
housing
and
I
think
it's
important
to
the
council
as
well
into
the
city
into
the
region,
and
this
is
something
that
they
think
will
help
elevate.
The
the
conversation
and
the
work
around
affordable
housing.
C
All
right,
thank
you,
and
thank
you
for
that.
So
the
concern
I
think
that
I
have
is
by
moving
this
position
into
the
mayor's
office.
Then
it
is
that
position
that
is
responsible.
Just
the
mayor
in
a
lot
of
ways.
We
don't
have
staff
directions.
We
aren't
able
to
hold
that
person
accountable
in
a
lot
of
ways
because
of
the
fact
that
it
would
live
in
the
mayor's
office.
So
that's
where
a
little
bit
of
apprehension
is
is
where,
where
is
the
look?
C
How
do
we
as
a
legislative
body
fit
into
that
as
well,
and
so
I
know
that
there
isn't
it
had?
There
hasn't
been
obviously
an
official
appointment,
but
I
I
know
that
there
there
is
someone
who
has
been
in
mind
and
I'm
curious.
Will
there
be
some
intentionality
around
hiring
folks
from
diverse
backgrounds
or
bringing
in
nonprofit
experience
like
what
kind
of
qualifications
is
the
mayor
really
looking
for
in
bringing
this
role
into
his
office?
Certainly.
D
This
role,
I,
think,
is
because
of
external
external
facing
nature
of
the
position
and
the
work
across
the
city.
The
person
will
certainly
need
to
have
good
relationships
across
the
city,
understanding
of
the
philanthropic
partners,
the
business
partners
that
we'll
be
connecting
with
to
help
build
the
resources
and
also
having
understanding
of
the
regional
approach
that
we're
hoping
to
take,
because
we
know
that
we
can't
just.
We
can't
do
this
alone
as
the
city
that
we
need
to
work
with
our
partners
and.
C
E
You,
chair
Asami,
hello,
miss
Batali,
my
question,
you
know
the
the
item
says
the
transfer
for
a
one-year
one-time
funding
and
so
I'm
I'm
curious
as
to
how
that
ongoing
funding
for
this
position
is
going
to
be
addressed
as
it
would
I'm
thinking
probably
come
out
of
our
general
fund,
which
I'm
just
curious
as
to
what
the
thoughts
or
plans
are
around
it.
Great.
D
Chair
Asami
council
vice
president
check-ins:
yes,
this
year
it
would
be
a
transfer
from
the
the
coordinators
office
and
in
subsequent
years,
we'd
have
to
go
through
the
regular
budget
cycle.
D
E
My
my
deep
concern
is
that
we
have
so
many
other
challenges
beyond
that
that
impact
people's
ability
to
afford
housing
and
that
we
need
strategic
partnerships
to
help
address.
Some
of
those
concerns
as
well,
and
the
point
has
been
made
that
this
position
will
be
solely
responsible
to
the
mayor,
and
so
you
know
it.
It
feels
like
it
would
somehow
inhibit
opportunities
to
create
other
strategic
partnerships
beyond
those
that
are
being
created
within
the
mayor's
office.
E
That
that
I
can
put
it
in
the
form
of
a
question.
How
will
this
position
focused
on
strategic
partnerships
and
housing
impact
other
strategic
partnerships
that
we
need
in
the
city,
for
example
around
workforce
development
or
youth
violence,
or
many
of
the
issues
that
we
rely
on
strategic
partnerships
to
help
us
address
within
the
city
council.
E
F
You
mr.
chair
I,
think
back
to
our
previous
mayor
and
the
mayor's
office
before
that,
and
this
seems
pretty
consistent
to
me
that
there
are
positions
there
that
go
and
seek
the
funding
and
therefore
I
plan
on
supporting
this
I
would
offer
the
encouragement
to
make
it
part
of
your
story
of
the
success
of
this
position
and
a
year
from
now
come
back
and
share
how
much
funding
was
captured.
F
How
successful
this
has
been,
how
much
return
on
investment
there's
been
for
this
position
and
hopefully
it's
something,
then
that
we
can
all
reflect
on
and
look
for
other
opportunities
as
well
to
go
out
and
and
seek
that
funding,
but
appreciate
being
here
to
answer
the
questions
and
the
thoughtfulness
around
this
position,
and
hopefully,
whoever
that
candidate
ends
up
being
in
this.
If
this
is
approved
that
they're
very
successful,
because
it's
a
huge
need
and
we
need
to
rally
as
many
sources
and
buckets
of
funding
and
partners
as
we
can
around
this
pressing
issue.
F
C
You
mr.
chair,
so
I
actually
just
wanted
to
speak
to
the
structure
of
the
previous
administration
that
there
wasn't
actually
an
external
facing
strategic
partnership.
Part
position
like
this
I
think
that
the
mayor
played
a
larger
role
in
that
in
that,
but
we
actually
did
not
have
positions
like
that
at
this
point.
How
large
is
the
staff
in
the
mayor's
office
chair.
D
C
And
so
so
you
had
mentioned
earlier
about
ongoing.
So
will
this
be
included?
Moving
forward
in
the
budget
request?
Is
that
will
that
be
expected
to
be
in
the
mayor's
proposed?
Our
proposed
budget
for.
B
D
D
The
stance
of
the
mayor's
office
is
that
this
is
a
top
priority
for
the
mayor,
affordable
housing
across
the
city,
and
so
the
reason
to
have
it
in
the
mayor's
office
is
to
continue
to
elevate
the
conversation
and
to
drive
and
oversee
the
work.
Affordable,
housing
across
the
city.
A
A
We
do
have
a
housing
crisis,
we
do
have
an
affordable
housing
crisis
and
whatever
tools
and-
and
you
know,
different
strategies
that
we
can
use
I
think
we
should
actually
try
them
because
we've
all
you
know
we
all
came
here.
You
know
championing
the
cause
of
addressing
this
issue
and
making
sure
that
we
have
more
affordable
housing.
Our
city
so
I'll
be
supportive
of
this
and
I,
like
my
colleagues
also.
So
what
this
is
wrong,
so
I'll
make
a
motion
Cosmo.
A
B
Thank
You,
chair,
Asami,
I
I,
will
look
for
this
today
to
move
it
forward
to
the
full
council,
I
think
there's
going
to
be
a
lively
discussion
at
the
full
council
as
well
I
think
I
know
some
of
our
colleagues
who
aren't
on
this
committee
have
an
interest
in
this
and
and
have
been
following
this
issue.
I
think
that,
as
described
I
think
the
idea
of
having
someone
to
go
get
resources
does
make
sense.
I
think
I'm,
persuaded
of
that
I.
Think
I
also
have
some
trepidation.
B
That
I
think
if
we
can
find
ways
to
create
some
reassurance.
You
know
I
think
the
mayor's,
affordable
housing
task
force
has
felt
like
it's
operating
a
little
bit
in
parallel
to
the
Housing
Committee,
and
there
hasn't
always
been
as
much
coordination
and
and
I
worry
that
this
feeds
that
dynamic,
so
we're
gonna
be
watching
very
closely.
E
Thank
you,
church,
worse
on
me,
I
will
be
voting
in
support
of
our
full
council.
I
have
an
opportunity
to
weigh
in
on
this
conversation
and
I.
Think
it's
an
important
conversation.
I
really
want
to
encourage
the
mayor
to
fully
consider
all
of
the
issues
that
are
impacting
this
affordable
housing
crisis
and,
in
my
opinion,
and
it's
just
the
lack
of
housing.
That
is
an
issue,
is
the
lack
of
people's
abilities
to
afford
that
housing,
and
so
we
need
to
be
thinking
of
creative
approaches
to
address
people's
economic
abilities
to
address
the
disparities
that.
G
A
Thank
you
very
much
council
vice
president
Jenkins,
any
other
discussions
on
this
item.
I'm,
all
those
in
approval,
say
aye,
those
in
a
disagreement,
say,
nay.
The
item
passes.
Thank
you
very
much.
Thank
you
to
the
city
here
to
the
mayor's
chief
of
staff
as
well
for
being
here
now
we're
going
to
go
to
our
real
discussion
items
items
number
25
and
26
number
25
is
issuing
debt
at
the
city
and
ratings
agencies.
Roll
in
bond
sales
and
item
number
26
is
debt
for
capital
expenditure
charter
amendment.
A
G
Mr.
chair
members
of
the
committee
mark
ruff
the
city's
chief
financial
officer
with
a
PowerPoint
presentation,
hopefully
we'll
get
it
up
on
the
screen.
I
just
want
you
to
know.
The
city
takes
password
security
very
seriously,
and
we
now
have
a
Pentagon
level
password
here
in
our
display
of
which
I
tried
three
times
and
failed
so
I'm
getting
some
expertise
here
to
help
us
along
in
which.
A
G
G
G
So
sometimes
we
get
hung
up
on
language,
and
so
we
have
a
bond
issue
that
the
city
issues
and
what
that
really
is,
is
nothing
more
than
the
city
taking
out
a
loan,
and
so
we
take
out
loans
for
variety
of
projects.
We
also
borrow
money
for
the
park
board,
so
they
said
they
set
their
own
budget,
but
we
actually
by
charter,
are
the
issuer
of
their
debt.
G
We
also
in
our
charter,
have
certain
procedures
and
limitations,
and
one
of
the
things
that's
on
the
agenda
is:
is
50
million
15
million
dollar
limit,
that's
been
in
the
Charter.
When
we
talk
about
this
term,
general
obligation,
bond
or
geo
bond,
sometimes
it's
referred
to.
It
is
traditional
across
the
country
that
if
you
want
to
get
the
lowest
possible
interest
rate,
for
example,
when
we
issue
debt
for
our
water
utility,
it's
not
just
the
water
revenues
that
back
up
the
revenue
or
back
up
the
payment
of
that.
G
But
we
actually
add
another
level
of
security
for
the
benefit
of
the
bondholders
of
saying.
If
there's
not
enough
water
revenues,
then
the
city
will
levy
taxes
to
make
the
debt
payment.
So
a
general
obligation,
just
it
refers
to
the
fact
that
is
generally
an
obligation
of
the
city
to
make
these
payments
no
matter
what
so,
essentially
the
city
has
to
go
bankrupt
before
we
would
not
make
payments,
which
is
very
unlikely
for
the
city
of
Minneapolis.
E
G
Just
locally
but
nationally,
and
so
that
is
a
process
that
we
follow,
it
is
a
procurement
process,
but
it's
done
a
little
differently
than
advertising
on
a
regular
website.
There's
a
specific
methodology
that
most
cities
and
counties
use
across
the
nation.
We
also
have
a
document
and
I
included
this
in
your
packet.
That's
an
important
document,
because
it's
a
couple,
an
official
statement
or
a
not
offering
document
that
actually
explains
as
much
as
possible.
G
In
plain
language,
what
are
the
benefits
of
investing
in
the
city
of
Minneapolis,
essentially
because
people
who
buy
our
bonds,
who
essentially
take
on
some
of
our
debt,
are
investing
in
us?
And
so,
if
you
look
through
the
back
half,
especially
the
Appendix
A
of
that
document,
it
talks
about
trends,
valuation
trends,
employment
trends.
G
It
talks
about
how
diverse
our
taxpayers-
our
are
talks
about
the
different
types
of
debt
that
we
have
and
later
on
the
summer
of
Mike
gave
one
who
is
our
debt
manager
go
through
that
particular
document
in
more
detail
we
did
for
today
is
not
necessarily
necessary,
but
we
will
have
the
opportunity
for
this
community
to
understand
where
our
is
all
of
our
debt
and
where
is
it
being
paid
from
so
that
document
is
important
not
just
for
the
investors
but
because
it's
a
securities
offering
it's
also
has
Securities
and
Exchange
Commission
oversight.
G
Now
that
doesn't
usually
affect
us
as
long
as
we
don't
default
on
our
bonds,
but
there
are
cities
around
the
country
who
have
defaulted
on
bonds
and
when
there's
a
default,
the
SEC
comes
in
and
says:
was
there
anything
misleading
in
that
document?
That
would
tell
an
investor
that
not
necessarily
the
whole
story,
and
so
we
take
those
documents
very
seriously.
G
When
we
talk
about
bond
issues,
it's
usually
not
just
project
by
practically
issue
bonds.
We
put
a
whole
number
of
projects
together
into
one
bond
issue
in
this
particular
case
this
spring
we're
actually
issuing
two
bonds.
Okay,
when
we
have
a
larger
issue,
it
attracts
more
issuer
in
more
investors,
more
potential
bids
and
should
then
lead
to
lower
interest
rates.
We
also
when
we
undertake
a
bond
issue.
G
We're
not
it's
not
like
a
home
mortgage
or
a
car
mortgage
or
car
loan
doesn't
have
to
be
the
same
amount
of
payments
every
year
we
can
adjust
those
payments.
However,
we
want
to,
we
can
have
them
as
short
or
as
long
as
we
want
to
as
well.
We
also
do
try
to
seek
lower
interest
rates
on
some
of
our
debt.
That
terminology
is
called
re,
fundings
or
sometimes
referred
to
as
refinancings,
but
same
thing,
which
is
just
the
purpose,
is
to
lower
interest
rates
over
a
period
of
time.
G
Then
we
actually
also
issue
taxable
debt,
as
well
as
tax
exempt,
and
that
terminology
is
tax
exempt
means.
Whoever
buys
our
bonds
that
are
tax
exempt
means
that
the
interest
that
they
earn
on
that
investment
is
not
subject
to
state
and
federal
income
taxes,
and
so
that's
why
we're
partly
the
reason
we're
getting
a
lower
interest
rate.
There
was
discussion
in
the
federal
tax
reform
about
actually
eliminating
that
tax
exemption,
because
the
federal
government
feels
like
it
costs
them
money.
E
G
A
number
of
local
and
state
government
organizations
pushed
hard
against
that,
and
so
that
exemption
was
not
taken
away,
but
it
was
actually
lessened
because
tax
rates
went
down,
and
so
the
benefit
of
some
of
those
tax
exempt
bonds
went
down
as
well.
Most
of
the
time
there
are
taxable
bonds
are
issued
when,
for
example,
the
Target
Center
there's
a
private
use
or
a
private
activity
associated
with
them.
G
We
also
have
some
parkways
traffic
signals,
there's
also
some
enterprise
debt
as
well
meaning
the
sewer
and
water
projects.
So
this
particular
bond
issue.
This
particular
this
issuance
in
the
spring
of
2018
is
about
forty
million
dollars,
and
so
that's
the
that's
the
types
of
projects
that's
what's
listed
in
that
official
statement
as
a
part
of
a
bond
issue,
they
said
we
expect
to
issue
about
twice
a
year.
We
do
one
in
the
spring
and
one
in
the
fall.
G
G
The
rating
agencies
use
a
specific
scoring
mechanism.
The
highest
rating
for
the
firms
that
we
use
is
triple
eight,
so
three
days
in
a
row
and
then
the
next
highest
level
is
double
a-plus.
So
from
Standard
&
Poor's
we
have
a
triple-a
rating
from
Fitch.
We
have
double
a-plus.
The
state
of
Minnesota's
bond
rating
is
I,
don't
think
it
was
upgraded.
G
Yet
last
time
I
checked,
it
was
actually
standard
and
poors
was
a
double
a-plus
and
the
federal
government
has
a
double
a-plus
rating
from
standard
report,
so
the
city
actually
has
a
higher
rating
than
the
federal
government.
At
this
point,
I'm
okay
ratings
are
expensive.
We
spend
over
a
hundred
thousand
dollars
per
bond
issue
to
get
a
rating.
We
used
to
have
three,
so
we
actually
brought
it
down
to
two
a
few
years
ago,
just
because
it
was
expensive
and
we
don't
see
that
much
benefit
from
those
three
and
the
firms
use
very
different
methodologies.
G
We
were
a
rating
was
changed
last
year
by
Fitch,
and
it
was
over.
Pension
concerns
had
nothing
to
do
with
the
operation
of
the
city.
It
was
generally
over
the
fact
that
we
had
a
significant
increase
in
pensions,
and
so
there
is
a
tension
bill
at
the
legislature
that
you
may
have
heard
about
which
does
involve
the
city's
some
of
the
city,
employees
and
so
I
thought
I'd.
Take
a
few
minutes
just
to
review
that
with
you
as
well.
G
Our
city,
employees,
are
all
a
part
of
para
PE
RA,
it's
a
short
acronym
for
that,
and
there
are
two
different
buckets.
One
is
a
ger
for
general
employees
and
then
the
other
is
police
and
fire.
So
here
you
can
see
what
are
the
annual
contributions
that
the
city
makes
to
para.
That's
a
substantial
amount
of
money.
It
is
58
million
dollars
for
2017
it's
on
a
different
calendar
year
than
our
fiscal
year
because
of
the
state
calendar
year.
There
are
two
to
significant
amounts
in
each
of
those.
G
Those
buckets
one
is
current
employees
and
then
the
other
is
related
to
a
closed
pension
funds
that
we
refer
to.
That
was
the
subject
of
a
great
deal
of
lawsuits
and
legislation
about
nine
years
ago,
when
the
city's
local
pension
funds
were
merged
into
pair,
and
we
have
additional
payments
that
were
making
until
2031
for
those
pension
essentially
deficits
that
that
existed
at
the
time
of
the
merger.
G
So
those
are
both
a
part
of
the
city's
budget.
The
current
employees,
part
of
it,
is
not
a
separate
line
item
on
the
on
the
levy.
It
is
just
part
of
our
general
employee,
essentially
benefit
costs,
but
the
other
two
are
separate
levies
that
you
will
see
on
the
levy,
certifications
and
the
levy
proposals
that
come
forward
with
the
budget.
G
At
the
current
time,
para
and
now
that
we're
fully
merged
with
these
quotes,
close
pension
funds
is
not
does
not
have
a
fully
funded
pension
system.
So
what
does
that
mean?
It
means
that
just
think
of
it,
the
best
maybe
analogy
I
can
come
up
with,
is
if
I
am
saving
for
retirement,
and
my
projections
show
that
essentially,
I
will
run
out
of
money
before
I
die.
Okay,
so
I
have
not
fully
funded
my
retirement.
The
same
with
pension
systems
is
that
there
is
a
measurement
they
do.
G
Okay,
so
para
does
have
projections
which,
by
2036
they
will
be
a
hundred
percent
funded,
but
right
now
they
are
not
fully
funded,
so
they
have
what
they
call
pension
liabilities.
Okay,
so
para
assigns
pension
liabilities,
then
to
each
contributing
jurisdiction,
and
that
goes
into
our
financial
statements.
All
right.
Our
audit
basically
and
this
chart
shows
part
of
the
reason
that
the
rating
agencies
were
noticing
here
is
from
2015
to
2016,
for
especially
our
police
and
fire.
That's
PE
PFF
our
pension
liabilities
more
than
doubled.
G
So
you
can
see
why
they'd
get
a
little
interested
and
say
if
your
financial
statements
say
that
all
of
a
sudden,
you
owe
twice
it's
like
having
a
BA.
You
know
twice
as
much
debt.
They
s
way
they
treated
all
of
a
sudden.
You
have
twice
as
much
debt
as
you
previously
have,
and
their
concern
was
is
that
this
was
actually
going
to
continue
to
increase
okay.
Now,
what
you
can
see
happen
in
2017
subsequent
to
that
rating
is
actually
went
back
down
again
again.
Why
is
that?
The
real
reason
is
Paris.
G
Financial
situation
hasn't
changed.
It's
just
that
there
are
some
new
accounting
rules
that
say
you
have
to
vary
your
investment
rate,
depending
on
how
close
you
are
to
full
funding
and
because
Pera
was
not
as
close
to
full
funding
in
2016,
they
lowered
their
investment
rate
from
seven-and-a-half
percent,
down
to
less
than
six
percent
on
the
police
and
fire,
and
that
enough.
That
was
enough
to
actually
cause
that
significant
increase
in
liabilities,
because
we
had
a
pretty
good
year,
we
being
generally
the
equities
market
stocks,
which
is
what
the
para
threw
the
state
board.
G
An
investment
primarily
invests
in
20
2017.
We
were
able
again
to
use
the
seven
and
a
half
percent
on
a
projection
basis,
so
nothing
material
changed
for
the
city.
Our
obligations
didn't
change,
but
our
liabilities,
as
in
our
financial
statements,
went
up
significantly.
So
we've
been
spending
time
with
Parra
we're
going
to
do
some
restatements
of
some
assumptions
here
in
our
in
our
particular
audit
for
2017.
G
That
will
more
generally
and
specifically
outline
what
are
our
liabilities
and
how
are
they
attached
I'm
going
to
use
tra,
which
is
the
number
on
the
far
right
as
an
example.
So
I
haven't
mentioned:
tra
tra
is
actually
teachers
retirement
pension.
So
we
say
why
is
the
city
of
Minneapolis
even
involved
in
liabilities
for
teachers
retirement
and
it.
G
Some
legislation
that
was
passed
more
than
ten
years
ago
as
a
essentially
a
contribution
towards
teachers,
retirement
the
city
was
along
with
Minneapolis
school
district,
asked
to
additionally
levy
two
and
a
quarter
million
dollars.
So
when
you
look
at
our
levy
form,
you
will
have
seen
for
a
number
of
years
and
will
continue
to
see
a
two
and
a
quarter.
G
Million
dollar
I
think
we
lovely
2.3
million
dollars
just
to
account
for
some
potential
unpaid
taxes,
but
that
two
and
a
quarter
million
dollars
is
going
to
go
to
the
Teachers
Retirement
Fund
I,
don't
know
the
whole
backstory
as
to
why
exactly
the
city
of
Minneapolis
was
asked
to
levy
on
behalf
of
the
school
district,
but
it's
been
around
for
a
while
and
was
the
legislature
who
directly
put
that
all
right.
So
if
you
look
at
that
column-
and
you
say,
our
liability
went
from
36
million
up
to
a
hundred
and
thirty
seven
million
dollars.
G
If
the
TRA
is
in
which
worst
financial
shape,
then
our
payments
are
going
to
go
up,
which
is
not
the
case.
So
that's
part
of
the
reason
we're
going
to
be
restating
our
financials
is
to
make
sure
a
more
accurate
portrayal
of
what
our
liabilities
are
longer
term.
We've
communicated
all
this
with
the
rating
agencies.
I,
don't
know
if
there's
gonna
be
any
change
going
forward,
but
I
can
tell
you
that
you
may
hear
about
people
concerned
about
pensions.
There
is,
as
I
said,
a
pension
bill
at
the
legislature.
E
Thank
You
Terrace
I
mean
mr.
Roth,
and
so,
when
we
levy
on
behalf
of
the
school
board,
does
those
funds
go
directly
to
the
school
or
their.
E
Well
to
the
Teachers
Retirement
Fund
yeah,
so
you
know
we,
the
city
Levy's,
for
that,
on
behalf,
is
there
any
recompense
to.
G
Share
wars
on
the
council,
vice
president
Jenkins
I
will
endeavor
to
find
the
story
behind
all
of
this.
My
my
suspicion
is
somebody
at
the
legislature
said
it's
the
same
tax
payers
and
it
maybe
is
easier
to
for
everyone
to
accept
this
legislation
if
it
doesn't
show
up
so
much
on
the
school
districts.
I
didn't
more
on
the
city
side
that
my
guess
is
that's
the
suspicion,
but
I
don't
have
the
full
story
on
that
it
is.
It
is
an
obligation
believe
it
or
not.
That
continues
and
tell
the
teachers.
G
Retirement
fund
is
fully
it's
fully
funded
for
their
pensions,
which
could
be
you
know
several
decades.
I
mean
we
just
don't
know
what
the
situation
is,
gonna
be
for
the
pension
funds,
but
it
is
treated
as
an
other
taxing
district,
so
it
doesn't
show
up
under
our
actual
city.
When
you
pay
your
property
taxes,
it
doesn't
show
up
under
the
city
line
item.
It
shows
up
as
an
other
taxing
district,
but
it
is
in
our
ladee.
G
B
You
Asami
Thank
You
mr.
Roth,
so
one
of
the
things
I've
been
curious
about
is,
it
seems
like.
It
seems
a
little
odd
to
me
that
Fitch
is
singling
out
pensions
as
the
thing
that
prompted
the
ratings
downgrade.
We
you
know
taking
on
liability
is
in
a
variety
of
ways,
including
a
stadium
bond
and
any
number
of
things
that
they
don't
necessarily
view.
Is
there
an
ideological
component
to
Fitch
focusing
on
pensions?
And
indeed
do
we
have
a
sense
of
I
know
in
personal
credit
ratings?
B
G
Sure
we're
sámi,
it
comes
from
ever
Fletcher.
You
ask
a
good
question:
every
rating
agency,
so
Standard
&
Poor's,
and
has
a
rating
criteria.
If
you
look
through
their
rating
report,
which
I
copy
there's
about
seven
of
them,
they
weight
them
differently,
so
standard
poor's,
only
weights,
debt
and
pensions.
10%
of
your
rating
Fitch
has
a
higher
assignment
of
that.
That's
just
their
own
decision
as
to
what
is
a
risk
area
remembering.
G
Reports
are,
and
ratings
are
not
and
not
really
a
comment
on
the
quality
of
life
in
a
city
right.
They
are
comment
on
what
they
think.
G
The
likelihood
is
that
you
would
default
and
Fitch
has
new
criteria
and
Gatsby
68,
which
is
the
accounting
standards
that
is
involved
here,
is
a
brand
new,
is
a
brand
new
accounting
standard
as
well,
and
so
I
think
we
got
caught
in
a
bad
place
of
them,
seeing
this
increasing
on
the
heels
of
Detroit's
and
other
lawsuits
and
bond
defaults
and
saying
boy
remembering
that
ratings
are
a
bell
curve.
So
it
does
so.
G
Minnesota
looks
a
lot
worse
than
the
rest
of
the
country
and
we
better
find
out
why
and
we're
gonna
essentially
downgrade
you
until
we
find
out
why
so
I
was
frankly
surprised
by
it,
because
it's
usually
what
rating
agencies
will
do
is
put
you
on
a
negative
watch,
meaning
that
oh
we're
concerned
about
this,
but
we're
gonna.
While
we
learn
about
more
and
more
about
this,
we're
going
to
take
some
action,
that's
as
much
as
I
can
ascribe
to.
G
It
is
just
their
knee-jerk
reaction,
saying
you're
out
of
whack
with
our
whole
new
rating
system
and
so
be,
and
because
we
now
have
a
scoring
system
where
we
have
to
abide
by
it
more
rather
than
giving
you
the
benefit
of
the
doubt.
We
have
to
live
with
our
scoring
system
and
you
look
out
of
whack
and
so
you're
gonna
be
downgraded.
G
We've
been
working
hard
on
communications
with
them
to
explain
just
this
next
topic
of
how
we're
gonna
fix
these
problems.
Statewide
and
I
would
also
say
that
we
are
also
caught
in
a
time
where
there's
an
over
emphasis
on
pensions,
because
another
part
of
employment
benefits,
post
employment
benefits
is
healthcare
and
there
will
be
new
accounting
standards
that
will
come
out
in
a
couple
of
years.
G
The
city
of
Minneapolis
actually
looks
very
good
on
health
care
nationally
because
we
do
not
pay
any
part
of
our
retirees
health
care
premiums,
whereas
in
other
parts
of
the
state
and
other
parts
of
the
country,
there's
significant
amount
of
exposure
and
liability
for
health
care
costs
on
part
of
public
employers.
All
we
do
is
by
state
law.
G
We
have
to
allow
people
to
stay
on
our
plans
and
still
pay
premiums,
but
we
don't
subsidize
their
premiums
so
I
think
in
a
couple
of
years
you
will
see
a
again
another
change
in
the
view
of
large
cities,
but
did
we
get
caught
in
a
bad
place?
I
think
so
is
there
more
to
it
than
that?
I,
don't
think
so.
G
G
D
G
So
that's
a
quick
overview
of
those
topics.
I
will
have
more
of
them,
but
I
just
want
to
introduce
those
to
the
council,
because
I
think
they
are
certainly
significant.
The
last
thing
I
will
say
is
this
week
we
expect
new
rating
reports.
I
will
send
those
out
to
the
council
as
a
whole,
so
you'll
be
able
to
read
those
I'd,
invite
you
to
share
them
with
their
constituents.
G
They
are
good
pithy
summaries,
you
know
sometimes
a
little
dense,
but
they
do
have
awfully
good
metrics
in
there
and
talks
about
not
just
the
difficulties
in
the
city.
But
generally,
if
you
read
those
rating
reports,
it
says
a
whole
ton
of
good
things
about
the
city
of
Minneapolis
and
I.
Think
you
should
all
be
proud
of
that.
G
A
Watch
any
questions
or
queries.
Thank
you
very
much
mark
and
I
make
a
motion
to
receive
and
file
this
informative
report.
All
those
in
favor
say
aye,
those
against
say,
nay,
and
that
has
me
so
we
have
the
final
discussion
item,
which
is
item
number
26:
debt
for
capital
expenditure
charter,
amendment
transmitted
to
the
Charter
Commission,
a
proposed
amendment
to
article
9,
section,
nine
point:
four
of
the
city
charter
relating
to
finance
debt
increase
in
limits
on
borrowing
for
capital
expenditure
and
permit
the
combination
of
charter
and
state
borrowing
authority
and.
A
G
C
G
Limit
per
project
has
been
around
since
1973
as
I
understand
that
there's
been
no
inflation,
as
we
as
sure
we're
Sami
discussed.
This
is
really
never
stopped
the
city
from
moving
forward
with
the
project,
but
it
is,
as
costs
are,
going
up,
making
it
increasingly
difficult
in
a
longer
process
for
us
to
find
statutory
authority
outside
of
our
charter
to
undertake
bond
issues
and
I
use.
G
The
example
of
fire
station
quickly
is
going
to
be
more
than
15
million
dollars,
and
so
we
have
to
go,
find
a
different
statute
to
go
through
and
approve
that
other
times
the
city
of
received
special
legislation.
That
legislation
may
only
require
a
simple
majority
of
the
council
and
I
think
the
charter
provision
provides
an
awful
lot
of
transparency
because
you
have
a
supermajority
requirement
of
the
council
as
well
as
the
board
of
estimate
and
Taxation
approval,
necessary
and
I
also
think
people
would
say
well.
G
E
G
The
inflation
that
we're
proposing
is
is
both
going
backwards,
so
we
would
take
site
1973
at
15
million
dollars
and
increase
increase
it
at
the
CPI,
the
Consumer
Price
Index.
So
today
that
would
be
right
around
80
million
dollars
and
then
also
going
forwards.
I
will
say
that
I
started
two
years
ago.
My
staff
brought
this
forward
to
me
two
years
ago
and
said
you
know.
We
should
really
do
something
about
this,
because
it
makes
it
more
difficult
where
we
have
to
go
through
some
hoops.
G
For
example,
when
we
did
a
parking
ramp
recently,
we
had
to
especially
assess
the
neighboring
property
to
do
the
parking
ramp
just
because
it
was
more
than
15
million
dollars
and
so
those
neighboring
properties
looking
at
us
like.
Why
are
you
doing
this
in
you're?
Not
really
charging
us
but
you're?
Assessing
us
and
there's
gonna
be
a
rebate
and
I
think
it
to
some
extent.
G
I
wrote
some
public
trust
as
well
when
we
have
our
own
limit
that
doesn't
really
apply
to
anything
that
we're
always
getting
around,
and
so
that's
part
of
the
reason
for
now
and
I
think
the
last
thing
I
will
say
is
I
would
do
work.
I
did
work
with
a
number
of
cities
as
a
consultant
around
the
state
who
are
also
charter,
cities
and
I'm,
not
aware
that
they
have
these
similar,
very
low
limits.
I
know,
for
example,
the
city
of
st.
G
Louis
Park,
with
the
supermajority
of
their
council,
can
borrow
all
the
way
up
to
their
debt
limit,
so
they
don't
even
have
a
cap
at
all.
It
could
be.
You
know
one
hundred
two
hundred
million
dollars
on
the
smaller
city,
like
the
city
of
st.
Louis
Park,
so
I
I
would
just
say
that
this
just
gives
you
more
tools
and
also
gives
the
public
a
more
transparent
process
as
well.