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From YouTube: April 26, 2023 Board of Estimate and Taxation
Description
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A
B
A
Next,
we
move
to
board
members,
we
move
to
the
agenda
for
today
it
is
before
us
may
I.
Please
have
a
motion
to
adopt
the
agenda.
Is
there
a
second?
We
have
a
proper
motion
before
us.
Is
there
any
discussion,
any
discussion,
seeing
none
with
with
that
all
those
in
favor
say
aye
aye,
those
opposed,
say
name
the
eyes
have
it
and
the
agenda
is
adapted.
Moving
to
the
acceptance
of
our
minutes
from
the
April
12
2023
meeting
May,
please
have
a
motion
to
accept
the
minutes.
A
Is
there
a
second?
We
have
a
proper
motion
before
us
any
discussion,
any
discussion
seeing
none
all
those
in
favor,
say
aye,
any
opposed,
say
name
the
eyes.
Have
it
and
the
minutes
are
accepted
as
presented
item.
Four?
Is
our
public
comment?
We
don't
have
any
public
comment
for
today
and
it
doesn't
look
like
we
have
anybody
present
here
for
public
comment,
so
we'll
move
on.
But
as
a
reminder,
we
do
allow
for
10
minutes
total,
which
would
be
two
minutes
of
speaker,
but
we
don't
have
any
for
today.
A
C
So,
thank
you,
president
priest
incident
board
members
for
providing
us
this
time
to
share
with
you
some
of
the
highlights
of
the
2023
assessment.
I'm
Rebecca,
malmquist
and
I
have
the
honor
and
privilege
of
serving
as
the
City
Assessor
leading
a
team
of
38
in
the
classification
and
valuation
of
all
properties
in
the
city,
ensuring
fair
and
Equitable
evaluation,
which
translates
to
fair
and
Equitable
taxation.
C
A
C
A
high-level
summary
and
reminders
about
the
assessment
in
February
we
completed
the
January,
2nd
2023
assessment
of
estimated
Market
values
for
approximately
131
000
properties,
and
this
is
an
annual
process,
as
is
dictated
in
statute.
The
notices
of
valuation
commonly
known
as
value
notices
were
mailed,
and
we
have
been
working
through
the
local
Board
of
appeal
and
Equalization
process
through
the
past
few
weeks.
It
is
important
to
remind
everyone
that
the
2023
assessed.
C
C
So
the
payable
2023
property
tax
statements
that
property
owners
receive
this
year.
Those
were
used
calculating
last
year's
2022
Market
values.
Another
reminder
is
that
the
data
we
use
to
set
the
annual
assessment
is
also
dictated
by
this
by
Statute
for
the
January
2nd
2023
assessment.
We
analyze
market-based
sales
transactions
that
occurred
between
October
of
2021
and
September
of
2022.
C
in
Minnesota
property
taxes
provide
a
significant
portion
of
the
funding
for
local
government
everybody's
or
every
property
share
of
taxes
is
based
on
its
market
value,
its
use
and
local
government
budgets,
which
then
become
the
tax
rate.
You
can
see
in
the
image
on
the
screen
for
a
simplified
illustration.
C
C
So
the
intermediary
step
in
converting
value
to
tax
is
called
the
tax
capacity,
and
this
slide
illustrates
how
this
works
for
some
of
the
common
property
types
in
the
city.
The
calculation
for
tax
capacity
is
the
market
value
which
is,
in
the
second
column,
multiplied
by
the
class
rate
in
the
third
column.
C
For
example,
as
you
can
see
here,
residential
property
on
the
first
line
and
a
commercial
industrial
property
on
the
bottom
line,
if
they're
both
assessed
at
three
hundred
thousand
dollars,
we'll
still
pay
different
taxes,
and
that's
because
the
class
rate
for
a
residential
property
is
one
percent
and
the
class
rate
for
a
commercial
industrial
property
is
two
percent.
As
a
result,
a
residential
property
will
pay
approximately
half
the
property
taxes
of
a
commercial
property.
C
This
slide
is
a
historical
view
of
the
city's
total
estimated
market
value.
The
overall
estimated
market
value
from
2022
to
2023
increased
increased
by
4.2
percent
this
year
to
just
over
67
billion
dollars.
This
does
not,
however,
include
utilities
and
state
assessed
properties
because
those
values
are
not
yet
available.
C
This
slide
is
a
visualization
of
the
breakdown
of
the
three
major
property
type
categories
by
the
2023
market
value
on
the
left
and
the
tax
capacity
on
the
right
because
of
the
calculation
of
the
value
to
tax
that
we
discussed
on
the
previous
slide.
There
is
a
change
in
the
distribution
between
the
three
categories
when
we
move
from
estimated
market
value
on
the
left
to
net
tax
capacity
on
the
right,
you
can
see
here
that
the
residential
values
in
green
on
the
left
comprise
nearly
60
percent
of
the
total
estimated
market
value.
C
C
This
chart
is
a
historical
view
of
the
tax
capacity
as
a
percentage
of
the
total
tax
capacity
by
property
type.
So
if
we
compare
2022
to
2023
the
two
bars
to
the
furthest
right,
you
can
see
the
year-to-year
shift
between
commercial
apartment
and
residential
will
be
very
minimal
this
year.
Overall,
this
means
that
residential
and
Commercial
will
bear
about
the
same
burden
in
payable
2024s
they
did
in
2023.
C
I
would
also
like
to
note
that,
because
of
the
historical
growth
of
the
apartment,
Market,
both
the
residential
and
Commercial
properties
have
a
smaller
portion
of
the
burden
than
was
true
just
10
years
ago.
You
can
see
Illustrated
in
Orange
going
all
the
way
back
to
2024.
The
apartment
properties
comprise
just
under
13
of
the
total
capacity,
and
they
now
comprise
of
almost
20
percent.
C
C
This
slide
illustrates
the
change
in
market
value
by
Ward.
Each
Ward
is
represented
by
a
blue
bar
and
the
percent
of
increase
is
a
label
at
the
top
of
each
bar.
So
last
year,
while
boards,
four
and
five
saw
the
greatest
increases
in
market
value.
This
year,
Ward
13
saw
the
largest
overall
increase
of
8.5
percent.
C
While
the
previous
slide
illustrates
the
overall
value
increase,
the
slide
further
breaks
it
down
into
the
three
major
residential
property
types.
We
group
condominium
and
townhome,
we
group
duplex
and
Triplex,
and
then
the
single
family
detached
is
categorized
separately.
Overall,
there
were
increases
in
the
duplex
and
the
triplex
and
single
family
sub-markets
and
a
decrease
in
the
condominium
Market.
Well
last
year,
the
condominium
Market
also
saw
decreases.
Those
were
really
driven
last
year
by
the
large
complexes
in
downtown
and
Uptown.
C
But
this
year
the
distribution
of
the
decreases
in
the
condominium
Market
were
much
more
equally
distributed
across
the
city.
I
would
point
out
that
there
was
260
million
dollars
in
new
construction
in
the
residential
Market,
so
on
to
how
we
are
measured
by
the
state.
Our
assessment
is
very
closely
scrutinized
by
the
state
to
ensure
both
accuracy
and
Equity.
We
follow
requirements
mandated
by
the
state
which
are
based
on
the
International
Association
of
assessing
officers
standard
on
racial
studies
and
standard
on
mass
appraisal.
C
The
data
reflects
this.
Data
reflects
the
residential
Market.
The
analysis
is
of
properties
that
have
sold.
So
we
can
compare
our
assessed
values
to
what
they're
selling
for
to
analyze,
how
accurate
and
Equitable
the
values
are
in
comparison
to
sale
prices.
The
first
measurement
I
will
review
is
a
sales
ratio
which
is
the
third
column.
This
is
a
measure
of
the
level
of
assessment.
It
is
a
comparison
of
the
estimated
market
value
to
the
sale
price
of
a
property
simply
stated
it's
the
assessed
value
divided
by
the
sale
price.
C
We
use
the
median
ratio
as
the
measure
of
central
tendency.
So,
looking
at
the
bottom
row
of
the
nearly
5
700
sales
in
the
city
this
year
on
the
residential
Market,
the
median
ratio
is
95.5
percent.
An
acceptable
median
ratio
is
90
to
105
percent.
However,
to
be
consistent
with
our
surrounding
jurisdictions,
we
all
typically
aim
for
a
median
of
95..
We
don't
want
to
be
at
a
significantly
different
level
of
assessment
than
our
surrounding
Neighbors
in
the
suburbs
or
surrounding
counties.
C
The
second
measurement
is
the
coefficient
of
dispersion
in
the
well,
the
second
to
the
last
column,
and
this
is
the
measure
of
uniformity
of
our
assessment.
It
measures
essentially
how
far
away
from
95.5
percent
each
of
the
other
sales
is.
An
acceptable
range
is
less
than
15
percent
for
a
city
like
Minneapolis
and
may
meet
this
requirement.
C
The
last
measurement,
the
price
related
differential,
is
critically
important
as
well,
because
it
measures
the
vertical
Equity
of
the
assessment.
So
when
low
valued
properties
are
valued
at
a
greater
percentage
of
market
value
than
high-valued
properties,
the
assessment
would
be
considered
regressive
when
low
valued
properties
are
valued
at
a
lower
percentage
than
high
valued
properties.
The
assessment
is
considered
Progressive,
but
assessments
for
tax
purposes
should
be
neither
Progressive
or
regressive,
and
our
assessment
is
within
the
acceptable
range
of
this
statistic.
C
This
slide
illustrates
the
comparison
of
the
median
sale
price,
which
is
in
blue
to
the
median
estimated
market
value
which
we
determine,
which
is
an
orange.
These
lines
should
be
going
in
the
same
direction
and
should
be
close
together
so
that
you
can
see
that
this
measurement
is
also
improving.
Our
median
estimated
market
value
this
year
grew
about
4.4
percent,
and
this
year
is
at
329
thousand
dollars.
C
C
C
The
next
slide
is
an
look
at
the
aggregate
growth
in
each
of
the
neighborhoods.
So
if
you
add
up
all
the
Residential
Properties
in
each
of
the
neighborhoods,
this
is
what
we
were
seeing
across
the
city
and
again,
the
growth
was
much
more
evenly
distributed,
instead
of
being
in
one
geographical
area.
D
C
Can
pivot
over
now
to
the
commercial
industrial
Market,
so
separating
commercial
from
industrial
you'll
see
overall
increases
in
both
markets.
In
the
last
column,
however,
the
industrial
Market
saw
a
much
more
significant
increase
this
year
of
23.6
percent
compared
to
the
commercial
Market
increase
of
3.8
percent.
This
is
the
second
straight
year
of
double-digit
growth
in
the
industrial
market,
and
it
is
the
largest
growth
of
any
one
property
type
in
the
city.
However,
this
is
not
unique
to
Minneapolis
and
we're
seeing
this
in
the
surrounding
suburbs
and
counties
as
well.
C
This
is
a
historical
look
at
the
commercial
industrial
Market
values.
While
we
saw
an
overall
decrease
in
2021.
This
is
the
second
straight
year
of
growth
in
the
commercial
industrial
Market.
The
aggregate
EMV
of
13.2
billion
dollars
did
has
now
exceeded
the
pre-pandemic
high
of
12.8
billion
dollars.
C
So,
while
overall,
the
commercial
industrial
Market
is
trending
up
again,
not
every
geographical
sub-market
has
completely
rebounded.
This
slide
separates
out
the
downtown
and
Uptown
sub-markets
on
the
left,
the
two
furthest
to
the
left,
the
commercial
Market
outside
of
downtown
and
Uptown,
and
then
the
industrial
market.
So
you
can
see
here
that
we're
still
seeing
overall
value
decreases
in
the
downtown
Market.
C
If
we
look
quickly
at
the
statistics,
as
we
did
for
residential,
you
will
see
that
the
median
ratio
and
the
Cod
is
acceptable
and
the
PRD
is
slightly
out
of
range,
and
this
will
be
watched
for
the
next
assessment
years
going
over
to
the
apartment.
Market.
The
net
increase
this
year
was
three
percent.
There
was
still
over
605
million
dollars
in
new
construction
added
this
year
and
again,
the
statistical
measurements
for
the
sales
ratio
and
cod
are
acceptable
and
the
PRD
is
out
of
range.
So
that
will
be
continue.
C
C
C
I
did
just
want
to
highlight
some
of
the
tools
that
we
have
on
our
website
that
our
team
has
been
working
on.
We
have
property
info
in
the
top
left
on
the
bottom
left.
We
have
created
a
neighborhood
sales
finder
and
through
the
local
board
hearings
that
we've
been
going
through
the
past
few
weeks.
We
have
found
that
there
are
a
number
of
our
property
owners
that
are
using
that
tool,
they're
bringing
those
sales
in
when
they
come
in
to
present
their
appeals
to
us.
So
it's
great
to
see
it's
actually
being
used
on.
C
and
in
the
top
right
is
the
levy
impact
estimator
that
our
team
created
by
our
team,
I,
should
say
Ben
created
last
year.
That
was
helped
in
the
levy
setting
process
for
the
mayor's
office
and
I
believe
that
concludes.
Oh
I
did
already
highlight
this.
The
next
step
in
the
appeals
process
for
all
of
those
that
were
on
the
local
board
agenda
is
the
County
Board
of
appeal
and
Equalization.
C
They
will
convene
on
June
12th
and
while
it
is
the
County
Board
of
Equalization-
and
there
are
members
selected
by
the
Commissioners,
our
staff
does
continue
to
work
on
those
cases
and
we'll
present
those
reports
as
well
and
just
for
a
little
bit
of
information.
So
you
know
that
where
our
residential
team
will
be
headed
this
summer
in
the
next
few
weeks,
actually
all
the
neighborhoods
in
pink,
we
will
be
visiting
going
door-to-door.
Our
teams
typically
go
through
the
field.
C
Our
entire
residential
team
of
12
or
14
are
going
through
the
neighborhoods
together,
and
we
will
notify
your
offices
or
the
ward
offices
as
well
as
Communications,
to
make
sure
that
people
know
who
those
people
are
that
have
green
vests
on
that
are
walking
around
their
homes
and
with
that
President
presents.
And
that
concludes
my
report.
A
E
E
E
E
E
E
I'm
I
I
bring
this
up
because
there
was
a
lot
of
angst
in
the
public
policy
debate
of
a
couple
years
ago
about
the
impact
of
the
2040
plan
in
terms
of
stepping
toward
density
and
I.
I
understand
some
of
that,
but
I
believe
that
increasing
density
was
generally
appropriate,
especially
for
the
high
density
corridors.
E
That,
like
the
one
near
me
where
I'm
seeing
it
one
particular
apartment
or
one
particular
parcel
I
check
on,
is
a
former
drive-in
restaurant
going
back
to
the
late
40s,
and
then
it
became
a
sit-down
restaurant
and
it
was
valued
at
760
thousand
dollars
and
then
eventually
was
sold
for
a
million
and
now
holds
a
10
million
dollar
apartment
building
and
that
kind
of
growth
is
I.
E
Think
really
important
to
the
city's
tax
base,
particularly
right
now,
when
we
saw
that
blip
in
commercial
property,
which
we
seem
to
be
recovering
from
everywhere,
but
downtown
so
is,
is
the
apartment
construction
starting
to
slow
down?
Or
is
this
just
an
accident
of
timing
that
we're
down
to
just
over
600
million
and
then?
Secondly,
what
impact
would
a
hard
rental
cap,
in
your
opinion,
have
on
the
pace
of
apartment,
Construction.
C
President
three
Stenson
and
vice
president
Brandt
I.
Unfortunately,
my
crystal
ball
is
in
the
shop.
It
was
really
blurry
and
so
I
don't
have
that
to
leverage
tonight.
However,
I
would
just
say
that
it
also
depends
where,
in
the
project
each
Apartment
project
is
at
because
we
do
value.
What
is
there
as
of
January,
2nd
and
I?
Don't
have
the
figures
about
how
many
are
like
partially
constructed
constructed
right
now,
I
know
that
we
did
come
up
with
a
partial
construction
figure
overall.
Do
you
remember
what
the
number
was.
C
Okay,
yes,
and
then,
as
far
as
the
rent
stabilization
work
we
have
been,
we
did
do
some
estimates
and
some
work
with
finance
and
Property
Services
and
cped
and
Regulatory
services
and
the
attorney's
office.
And
it's
a
wait
and
see.
We
have
talked
to
our
colleagues
in
Saint,
Paul
and
they're,
not
seeing
any
movement
right
now
and
so
I
would
say
that
I
would
advise
you
to
go
back
and
watch
the
presentation
to
Biz
last
week
and
that
would
probably
help
answer
some
of
your
questions.
A
D
Thank
you,
madam
chair,
and
my
apologies,
commissioner,
for
sort
of
jumping
you
in
line
there,
but
but
I
I
wanted
to
discuss
this
particular
topic
briefly
and
at
least
cite
some
of
the
approximate
numbers
that
I
have
in
my
head
before
I
do
so
I
do
want
to
really
thank
you
for
all
of
your
work,
assessor,
it's
invaluable
for
the
city.
The
work
that
your
department
does
in
the
city
is
critical
and
makes
a
huge
difference
for
policy
makers,
and
so
thank
you
for
your
work
generally.
D
Thank
you
for
the
levy
impact,
estimator
I
think
it's
a
really
useful
tool
and
certainly
helps
policy
makers.
Make
good
decisions
to
vice
president
Brandt's
question
around
rental
caps.
A
couple
pieces
I
want
to
point
out.
D
First,
there
was
a
recent
Pew
research,
a
Pew
research
analysis
that
was
conducted
Nationwide
regarding
affordability
of
rental
costs
and
supply
of
Housing,
and
due
to
the
increases
in
Supply
that
we
have
seen
in
Minneapolis,
we
have
seen
among
major
cities
the
lowest
rent
increases
of
any
major
city
in
the
country,
at
least
that's
the
way
that
the
graph
was
was
portrayed
I'm
happy
to
send
that
chart
around
it's
a
pretty
extensive
piece.
D
Now,
that's
not
to
say
that
there
aren't
anecdotal
instances
within
the
city
where
the
rent
goes
dramatically,
above
that,
but
again
the
the
work
that
we
are
doing
and
the
strategy
that
we
have
taken
not
according
to
me,
but
according
to
Pew
research
is
working
and
not
just
working
a
little
bit
working
better
than
just
about
anywhere
else
and
again,
not
my
words.
You
can
look
at
the
data
and
it'll
it'll
Point
paint
that
picture
very
clearly.
D
D
There's
one
particular
parcel
that
I'm
thinking
of
where
the
previous
property
taxes
generated
from
what
was
largely
a
vacant
lot
were
around
thirty
five
thousand
dollars
per
year
and
with
a
large
building
on
it,
the
property
taxes
generated
were
over
2
million
those
two
million
dollars,
while
they
could
increase
and
will
increase
the
levy
likely.
D
The
levy
percentage
increase
the
the
impact
to
each
individual
property
taxpayer
due
to
that
increase
of
of
of
of
rent
of
of
property.
Tax
capacity
has
gone
down
and
then,
finally,
the
the
question
is
to
how
have
rent,
Caps
or
rent
control
impacted
the
city
or
what
would
be
the
impact
while
I
can't
predict
the
future,
and
we
also
can't
100
determine
causation
the
last
year
or
so,
since
Saint
Paul
instituted
their
ballot
initiative
and
then
their
rent
cap
itself.
D
They
saw
approximately
they
shouldn't
quote
me
on
this,
because
I'm
I'm,
but
these
numbers
are
an
estimate.
They
saw
about
a
65
percent
drop
in
their
development,
whereas
we
saw
a
90
plus
percent
increase,
so
65
percent
drop
in
one
city
and
90
percent
or
so
increase
in
the
other
again
I
think
those
those
S
those
percentages
are
an
estimate
but
I
think
I'm,
pretty
close
in
terms
of
the
numbers.
D
F
Thank
you.
Thank
you.
So
much
for
the
presentation
I
find
this
just
really
personally
kind
of
really
interesting,
so
I
apologize.
Some
of
my
questions
are
going
to
probably
be
a
little
bit.
Maybe
dumb
I
don't
know,
but
you
know
one
of
the
things
I
wrote
is
when
you
were
giving.
The
presentation
is
how
you
look
at
the
neighboring
communities,
but
actually
what
the
mayor
just
said
is
really
interesting
to
me
from
a
point
of
view
of
yeah.
F
If
you
don't
look
at
what
the
neighboring
communities
are
doing
in
terms
of
their
where
they
are
with
the
properties,
you
can
have
people
vote
with
their
feet
potentially
or
invest
somewhere
else
so
another
one
of
the
things
that
also
comes
to
mind
is
that
under
the
residential
category
it's
the
combination
of
condos,
townhouses,
single-family,
duplex,
Triplex
and
I.
Don't
know
one
of
the
things
that
I've
been
wondering
with
all
the
built
up,
the
building
up,
we're
getting
of
rental
rentals
at
some
point.
F
C
E
C
C
F
Just
interesting
for
me
to
consider
that
and
then
one
more
question-
and
this
is
almost
just
really
personal,
but
there
was
a
term
that
you
used
in
the
presentation
and
I've
seen
it
on
my
bill.
My
own
property
tax
bill
and
I
had
an
understanding
of
what
it
was
from
years
ago,
but
the
term
is
fiscal
disparities
and
I
thought
it
had
like
a
kind
of
a
County
Wide
or
a
region-wide
role,
but
it's
usually
zeroed
out.
But
could
you
describe
what
fiscal
disparities
means,
at
least
from
the
point
of
your
presentation.
A
I
had
just
a
quick
question
around
so
when
new
construction
happens
like
let's
take
a
condominium,
for
example,
it's
something
that
somebody
can
own
it's
covered
and
anything
that
breaks
I,
believe
it's
like
a
10-year
period,
so
sometimes
in
some
cities
and
I
believe
it
happens
in
ours
as
well.
After
kind
of
that
10-year
period
lapses.
Sometimes
what
was
an
apartment
will
convert
to
townhouses
or
condos
in
a
different
category,
because
that
time
period
it's
Better
Business
for
people
in
the
in
the
business
of
that,
but
I'm
just
wondering
is
there?
A
C
B
C
B
B
E
Probably
a
couple
follow-up
questions,
the
the
the
idea
of
conversions
of
office
Towers
through
residential
use
has
been
under
discussion
for
really
since
the
pandemic
hit
almost.
Are
you
seeing
any
signs
that
it's
actually
a
real
thing,
as
opposed
to
something
that
is
a
Navy
or
what?
If
or
is
it
happening.
C
President
Preston,
and
vice
president
Brandt,
it
is
happening.
I
would
say
that
we
don't
have
our
chief
appraiser
here
with
us
who
manages
all
of
the
CBD
in
the
downtown
team,
but
they
do
surveys
of
Brokers
and
Property
Owners
downtown
and
those
conversations
have
definitely
escalated.
I
would
say
it
takes
the
right
building
to
make
the
model
work,
though.
G
C
Really
about
the
floor,
plate
and
windows
and
all
of
those
things
I
am
quite
sure.
The
mayor
has
been
contacted
several
times
about
different
properties
that
are
being
considered
under
conversion,
as
there
is
a
lot
of
inquiries
going
on
with
our
office
and
administration
about
what's
happening.
What
we're
seeing
in
the
downtown
Market
day
by
day
we're
just
collecting
more
and
more
information,
because
we're
going
to
be
applying
that
to
our
next
assessment
year.
E
And
if
I
could
follow
up
on
just
the
number
of
parcels
that
you
assess,
I
noticed
that
the
last
couple
years,
it's
up
by
about
6
000
from
what
it
was
in
21
and
20
assessment
reports,
and
is
that
just
something
a
number
that
hadn't
been
updated
for
a
while
or
are
you
is
it?
Does
it
reflect
additional
condo
units
which
would
I
guess
be
individual
parcels
I've
as
noticing
it's
jumped
from
125
000
to
131
000.
C
C
Oh
and
then
we
started
coding
exempts,
but
yes,
for
example
like
is
it
the
seven
or
the
11
I,
don't
remember
what
it
was
called.
Seven
like
11..
Thank
you
things
like
that.
But
when
we
do
see
new
construction,
we
are
seeing
oftentimes.
That's
not
just
one
parcel,
it's
being
split
into
several
Parcels.
G
A
Yeah,
are
there
any
further
questions
all
right?
Well,
thank
you
again
so
much
for
you
and
your
team
and
all
of
your
work.
We
greatly
appreciate
it.
Thank
you
for
being
with
us
today
with
that
I
will
ask
the
clerk
to
receive
and
file
this
item
and
we
move
on
to
item
number
six
on
the
agenda,
which
is
receiving
a
presentation
of
our
2022
fourth
quarter:
financial
status,
update
from
our
city
controller
Lyle
Hodges
welcome.
Thank
you
for
being
with
us.
H
President
priest
and
some
members
of
the
board,
thank
you
for
having
me
as
you've
noted
I'm
Lyle
Hodges,
the
controller
in
finance
and
Property
Services
at
the
city
here
to
present
the
financial
status
report
summary
level
information
about
some
funds
at
the
city
as
of
1231
2022
before
I
get
going
here.
I
do
want
to
note.
H
The
information
presented
today
is
accurate
as
of
1231
2022,
but
it
will
be
different
than
what
you
see
in
our
audited
financial
statements
when
we
publish
those
in
a
couple
months
here
at
the
end
of
June,
just
through
the
natural
course
of
our
accounting
activity,
changes
happen
to
fund
balance
and
net
position,
numbers
that
are
not
reflected
here
but
will
be
reflected
in
our
audited
statements.
H
To
begin
with,
we've
got
a
summary
overview
again.
The
financial
picture
of
the
city
continues
to
be
impacted
by
the
covid-19
pandemic.
Last
summer.
Bond
rating
agencies
did
confirm
our
Outlook
changes
that
they
had
made
in
2021,
and
that
was
an
increase
from
stable
to
positive
from
Fitch
and
negative
to
stable.
From
for
s
p,
we
do
see
that
parking
revenues
are
rebounding,
but
there's
still
less
and
we
would
we're
less
than
budgeted
and
less
than
the
pre-pandemic
amounts.
H
H
We
are
meeting
fund,
balance
and
net
position
reserve
requirements
in
all
the
funds
of
the
city,
except
for
two
and
that's
our
self-insurance
and
our
information
technology
funds.
Those
are
both
self,
both
internal
service
funds.
H
As
far
as
our
cash
targets,
we
are
meeting
that
in
all,
but
two
funds
as
well.
The
parking
fund
is
under
that
minimum
cash
balance.
Of
course,
due
to
Lost
Revenue
during
the
pandemic
and
the
San
Terry
sewer
fund
is
under
the
minimum
cash
requirement
due
to
planned
spending
on
Capital
Investments
and
using
cash
rather
than
bond
funds
for
Capital.
H
In
the
general
fund,
we
use
this
fund,
of
course,
to
account
for
all
Financial
Resources,
except
those
that
are
required
to
be
accounted
for
or
reported
in
a
different
type
of
fund.
Our
ending
2022
fund
balance
was
197.7
Million,
that's
about
a
54.8
million
dollar
increase
compared
to
where
we
were
at
the
end
of
2021.
H
H
Originally,
we
had
planned
to
spend
down
general
fund
fund
balance
in
2022
and
then,
of
course,
through
our
rollover
process,
we
increased
that
plan
to
spend
down,
but
in
the
end
we
increased
it
instead.
H
This
slide
shows
a
budget
versus
actual
for
major
Revenue
categories.
As
you
can
see,
electively
we
collected
24.8
million
dollars
more
Revenue
than
we
had
budgeted
that
was
led
by
overages
and
the
licenses
and
permits
category.
This
represents
development
activity
we
also
in,
and
we
also
collected
franchise
fees
in
excess
of
the
budget
of
almost
7
million,
and
that
has
to
do
with
the
the
rates
that
everyone
is
paying
for
things
like
Natural,
Gas
and
energy.
H
H
This
graph
shows
us
comparatively
how
we
collected
Revenue
as
a
percentage
of
budget
and
then
Compares
that
to
Prior
year
averages.
So
in
2022
we
collected
approximately
104.2
percent
of
our
budgeted
revenues.
Historically,
we
do
collect
about
101
percent,
so
we've
collected
slightly
more
than
average
in
terms
of
budget
to
actual.
H
The
next
slide
is
general
fund
expenditures
again
budget
to
actual
for
our
largest
departments.
Here
you
can
see
collectively
we
underspent
by
about
50
million
dollars
in
the
general
fund,
there's
at
the
Top
Line
there.
The
police
department
we
can
see
was
under
spent
primarily
due
to
Staffing
savings
and
Staffing.
Fire
was
over
budget
by
about
4.7
million
again
due
to
Staffing,
they
had
some
overtime
costs
that
were
above
what
they
budgeted.
H
The
last
two
lines
represent
major
underspending,
and
the
22.8
million
dollars
is
primarily
in
the
cped
fund.
We
moved
some
projects
into
the
general
fund,
cped
budget,
that
we
didn't
really
expect
to
spend
in
2022.
So
that's
where,
where
that
under
spending
was
from.
H
And
then
this
graph,
similar
to
the
revenue
graph,
shows
us
over
time.
We
do
understand
in
the
general
fund.
Usually
it's
about
a
97
percent
of
budgets
on
average
and
last
year
through
2022,
we
only
spent
about
93.7
percent
of
our
budget,
so
we
were
more
under
budget
than
usual.
H
H
So
again,
we've
received
all
the
cash
for
that
the
cash
and
that
fund
is
fairly
high
right
now
to
be
spent
over
the
course
of
the
next
few
years.
H
H
H
The
next
group
of
funds
are
our
internal
service
fund.
At
the
city,
we've
got
six
major
internal
service
funds,
they're
also
listed
there.
We
use
these
to
account
for
goods
and
services
provided
internally
to
other
City
funds
and
departments
at
the
end
of
2022.
H
The
total
net
position
in
these
funds
had
increased
by
about
17
million
up
to
74.4
million,
and
cash
also
increased
in
this
fund
Group
by
about
14
million
up
to
about
181
million,
and
this
just
reflects
consistent
spending
staying
within
budgeted
amounts
and
then
there's
been
some
transfers
from
various
funds
into
the
self-insurance
fund
to
help
support
cash
balances.
H
And
then,
finally,
we've
got
the
Enterprise
funds.
These
are
the
funds
that
we
use
to
account
for
operations
where
we're
selling
goods
and
services
to
external
third
parties.
They
include
the
utility
funds,
as
well
as
the
parking
fund
and
the
cped
operations
or
cpad
Enterprise
fund
at
the
end
of
2022.
H
Total
net
position
in
this
group
of
funds
was
over
a
billion
dollars
on
those
18.8
million
dollar
increase
from
where
they
ended.
2021
total
Cash
In
These
funds
was
about
105
million,
which
was
a
two
and
a
half
million
dollar
increase
from
2021
and
again
cash
is
stable
in
most
of
these
funds,
and
we
did
see
a
slight
increase
in
the
storm
water
fund,
which
you'll
see
on
the
next
slide,
due
to
operating
gains.
A
E
My
colleagues
will
remember
that
an
argument
I
made
a
a
year
ago
was
was
a
sanctuary
sewer
system
in
a
particularly
advantageous
position
to
be
able
to
do
that,
or
was
this
done
across
the
three
underground
utilities
that
the
city
runs
the
preference
to
move
towards
using
more
cash
and
less
borrowing.
H
President
presence,
and
vice
president
Brandt
I'm,
actually
not
sure
of
the
details
on
that
one
in
terms
of
how
each
of
the
utility
funds
manages
their
bonds
as
compared
to
cash
for
capital
projects.
I
don't
know
if
we
have
a
general
statement
that
would
cover
that,
but
okay
I
can
look
into
it.
H
E
You
and
the
third
question
is
you
mentioned
the
sort
of
windfall
if
you
will
from
franchise
fees
because
of
higher
and
the
higher
utility
costs,
as
we've
all
been
paying?
Are
we
at
risk?
If
are
we
likely?
If
those
prices
for
energy
fall
to
see
the
franchise
fees
fall,
does
it
work
the
other
direction
as
well.
H
F
Thank
you,
I
just
want
to
say
that
I
appreciated
the
presentation
very
much,
and
just
for
the
record
that
the
park
board
is
really
outside
of
these
this
this
report
and
that
the
park
board
did
its
year-end
report
in
the
last
few
weeks
to
the
board.
So
I
just
wanted
to
note
that
also
I'm
tracking
because
of
the
park
boards
working
closely
with
the
city,
now
an
initiative
to
establish
our
own
storm
water
kind
of
Enterprise
fund,
and
so
it's
it's
nice
to
see
that
there
are
operating
gains.
F
There
could
be
a
great
partnership
there
in
that
fund
and
I
was
at
first
thinking,
okay.
Well,
there
was
a
rate
increase
that
was
fairly
significant,
but
that
took
effect
in
January,
so
I.
Don't
think
that
that
could
be
part
of
the
reason
why,
but
it
was
just
noteworthy
and
I
wanted
to
comment
on
it.
Thank
you.
A
Let
me
turn
that
mic
on
with
C
none
I'll
ask
the
clerk
to
please
receive
and
file
that
item
one
quick
announcement
just
to
keep
things
smooth
amongst
all
of
us.
If
there
are
requests,
we
do
have
ABDO
now,
which
is
fabulous
so
please,
because
I
managed
that
contract.
If
there's
questions
reports,
spreadsheets
other
things,
so
that
we
respect
staff's
capacity
and
also
utilize
the
Professional
Services
that
we
all
voted
on.
A
Please
send
those
things
to
me
so
that
I
can
they
can
be
orderly
and
I
can
keep
track
of
those
requests
and
so
that
we
also
can
equally
have
access
to
the
things
that
we're
all
requesting
as
well
but
other
than
that
we
are
adjourned.
We
have
completed
all
of
our
business
before
us
and
have
a
great
afternoon.
Thank
you.