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From YouTube: May 14, 2020 Morning | City Council Budget Study Session
Description
City of San José, California
City Council Budget Study Session meeting.
Pre-meeting citizen input on Agenda via eComment at https://sanjose.granicusideas.com/meetings.
Agenda https://sanjose.legistar.com/View.ashx?M=A&ID=789083&GUID=86009DB1-CE55-4C7C-82CE-7731E554120F
A
A
Hey
Jim,
you,
you
feel
uncomfortable,
they
get
started.
A
We'll
begin,
then,
our
abbreviated
budget
study
sessions
for
the
upcoming
fiscal
year,
2021
I,
want
to
thank
everyone
in
the
Budget
Office
for
their
incredibly
hard
work,
Jim
Channon
and
the
entire
team.
We
know
that
they
haven't
been
sleeping
for
days,
living
the
life
of
rock
stars,
except
without
the
same,
the
booze
and
all
the
money
that
comes
with
it,
they're
just
doing
incredibly
hard
work
and
we
appreciate
all
their
hard
work
and
sleepless
nights.
I
really
want
to
thank
everybody
in
the
city
organization
right
now.
These
are
been
really
tough
times.
A
We
know,
and
these
are
times
when
in
every
department
I
know
very,
very
difficult
decisions
are
being
made
up
and
down
the
organization
and
the
pain
is
being
felt
throughout
I
know,
particularly
for
those
members
of
our
team
that
are
required
to
I
guess
is
we
affectionately,
call
it
bump.
That
is
moved
to
different
positions
because
of
different
cuts
that
have
had
been
made
and-
and
we
know
that
is
very,
very
challenging.
We
know.
A
Obviously,
the
impacts
ultimately
were
felt
by
our
residents,
but
I
just
want
to
thank
everybody
for
their
hard
work
and
trying
to
make
this
work
at
a
very
challenging
time,
a
moment
for
our
community
and
for
our
city
organization
and
really
think
Dave
Sykes
for
his
very
proactive
efforts
to
reach
out
to
the
workforce
through
several
meetings.
Now
that
have
engaged
well
more
than
I
think
it
was
more
than
1200
of
our
employees
through
those
town,
halls,
I
think
that's
really
critically
important.
A
D
There's
so
many
priests,
yes,
we
can.
Thank.
You
so
certainly
appreciate
this
opportunity,
and
a
lot
of
work
has
gone
into
getting
us
here.
If
you
can
go
to
the
next
slide.
Jim
just
I
think
it's
important
to
in
some
ways
acknowledge
some
of
the
obvious
here
in
what
we've
had
to
kind
of
work
through
to
get
to
this
point,
certainly,
the
the
sudden
in
severe
revenue
shortfall
that
we've
had
to
address
is
really
what's
been,
the
primary
challenge
all
while
we
continue
to
stop
operate
in
emergency
mode
with
all
of
our
operations.
D
So
what
you
have
in
front
of
you
really
is
a
significantly
modified
budget
document
and
certainly
we're
all
feeling
the
compressed
process
and
in
really
just-in-time
releases
of
information.
That
typically
would
not
be
acceptable,
but
at
this
point
are
the
only
way
we
can
do
it.
You
know,
preparation
of
the
budget
this
year
was
basically
starting
from
scratch.
D
When,
when
the
kovat
crisis,
you
know
began,
and
so
what
you
have
is
a
trimmed-down
version
of
the
budget,
we're
also
not
able
to
follow
all
of
the
direction
that
council
has
given
us,
which
normal
times
would
be
sacrilegious
to
the
honest.
But
we've
just
had
to
you
know,
make
adjustments
and
accommodate
and
factor
in
what
we
can
and
so
certainly
want
to
acknowledge
that
the
compressed
time
frame
and
the
just-in-time
release
is
great
challenges
for
everyone,
and
certainly
with
regard
to
the
deliberation
process.
E
D
F
G
D
D
What
you
well
has
just
been
released
this
morning
just
in
time,
is
the
our
equity
review.
We
perform
the
equity
review
in
in
two
steps.
The
first
step
was
to
put
reduction
proposals
into
categories,
and
then
we
did
a
sprint
screening
of
the
impactful
reductions
in
so
certainly
not
wavering
on
our
commitment
to
to
do
the
review,
but
certainly
completely
challenged
by
the
circumstances
that
we
find
ourselves,
and
so
what
we
have
released
today
is
not
a
not
a
lip
service
review.
D
It
is
a
meaningful
review
of
the
impactful
reductions
and
I
just
want
to
thank
the
members
of
the
gear
team
that
helped
do
that
review
and
really
came
through
for
us.
Also
wanna
acknowledge
the
fact
that
we
are
an
organization
powered
by
people.
In
so
minimizing,
layoffs
is,
is
not
just
a
strategy
to
protect
our
hone.
It's
a
strategy
recognizing
that
without
our
people
we
can't
perform
services.
D
There
are
59
limit
date
and
over
strength
positions
that
will
be
ending
with,
as
we
end
the
fiscal
year
here,
32
of
those
staff
members
do
not
have
rights
to
other
positions,
and
so
those
staff
members
will
will
find
themselves
without
a
job
at
on
June
30th.
So
I
just
want
to
make
sure
we
all
understand,
there's
impacts
to
people
here,
and
they
are
real
and
certainly
just
acknowledging
the
uncertainty
as
we
we
move
forward
and
recognizing
that
there's
still
a
lot,
that's
going
to
happen
and
change
along
the
way.
D
D
We
have
put
forward
a
contingency
plan
that
is
not
seeking
approval
at
this
time,
but
certainly
it's
a
plan
that
we
wanted
to
be
able
to
put
forward
for
everyone
to
be
able
to
understand
potential
impacts,
should
revenue
conditions
worsen,
and
so
we
would
bring
that
back
in
the
fall,
but
wanted
to
be
really
transparent
about
what
those
type
of
impacts
would
look,
like,
obviously,
ultimately,
would
be
the
decision
of
the
mayor
and
the
council
on
employee
engagement.
We've
we've
done
our
best
to
to
involve
our
workforce
throughout
the
process.
D
This
is
this
is
not
a
check.
The
Box
thing
for
me
I
think
it's
critical
that
we
be
able
to
share
information
with
our
workforce
and,
more
importantly,
be
able
to
listen
to
our
workforce,
understand
their
concerns
and
get
their
input.
So,
as
the
mayor
mentioned,
we
had
a
series
of
town
hall
meetings.
D
The
departments
did
a
lot
of
their
own
meetings
as
well
is
to
make
sure
they
could
get
more
specific
with
our
with
our
staff,
and
certainly
we
had
a
robust
response
to
the
employee
suggestion
program
and
then
I,
just
I,
think
important
to
note
with
co-head.
You
know,
there's
still
a
lot
of
uncertainty
as
we
move
forward.
We're
still
managing
through
operationally
and
and
those
changes
will
continue
as
we
reopen
I'm
still
working
through
how
we
can
use
federal
funding,
and
it's
still
hopeful
that
future
federal
funding
will
allow
reimbursement
of
lost
revenue.
D
B
If
we
have
the
forecast,
that's
out
there
and
you're,
the
revenue
assumptions
are
discussed,
pretty
in-depth
than
that
and
that
forecast
and
then
we
move
on
proposing
how
to
resolve
that
deficit
or,
and
the
very
rare
exception,
how
to
spend
the
extra
little
surplus.
So
just
a
reminder
for
where
we've
been,
you
know
when
we
put
out
the
forecast
back
at
the
end
of
February,
we
had
a
tiny
surplus
of
500,000
which,
at
the
time
we
were
publishing,
we
were
seeing
things
change.
B
The
mayor's
message
released,
says
you
know,
it's
obvious,
it's
going
to
change
and
we
need
to
prepare
accordingly
and
so
and
then
we've
absolutely
you
know
pivoted.
So
you
know
in
the
last
six
weeks,
I
think
you
know
we
have
we've
as
an
organization.
We
have
resolved
shortfalls
of
forty-five
million
and
seventy-eights
of
these
two
million,
so
a
credible
amount
of
work
to
inhibit
in
a
short
amount
of
time.
B
So,
if
I
wanted
to
show
this
slide
here,
because
I
think
that
we've
done
this
work
in
1920
to
solve
that
shortfall
in
2021
for
the
work
that
we're
doing
here
today,
we
have
still
probably
a
longer
road
ahead
of
us,
because
we
know
that
we're
probably
in
an
ongoing
situation.
So
back
in
February,
we
were
going
to
project
deficits
even
with
you
know,
decent
conditions.
B
We
did
have
a
recession
scenario
as
an
option
just
for
us
to
all
consider
two
more.
What
might
happen
if
a
recession
came
and
that's
what's
shown
in
the
red
circle
areas
below.
But
you
know
what
what's
happened
is
that
recession
didn't
just
come
in
2021.
It's
come
now
and
it's
much
deeper
than
what
was
shown
here
so
I
think.
We
know
that
we
have
a
pretty
tough
road
ahead
of
us
and
want
to
set
that
context,
and
you
can
here's
what
we've
been
through.
B
You
know,
since
the
end
of
the
dot-com
or
since
the
calm
crash
that
we've
had
to
solve.
You
know
over
700
million
dollars
worth
of
shortfalls
and
we
finally
got
out
of
the
worst
of
it
after
the
1112
year,
even
twelve,
thirteen
through
1920,
we
were
really
just
bumping
along
and
pretty
much
is
structurally
balanced,
not
much
up
or
down
one
way
or
the
other,
and
you
know,
and
actually
that
the
second
to
last
column,
where
says
2020,
is
actually
a
little
misleading.
Those
are
the
adopted.
B
You
know
the
proposed
budget
shortfalls
that
we
solved,
but,
of
course,
there's
a
big
negative
now
for
2020,
a
forty
five
million
that
we
had
to
close.
So
you
know
this
is
maybe
the
beginning
of
some
pretty
tough
times
or
like
at
the
beginning
of
some
pretty
tough
times
of
heavies
right
now,
we're
in
a
revenue
shortfall
we
haven't
even
hit,
yet
the
cost
side
of
it
will
be
coming
next
year
when
we
probably
have
to
look
at.
B
So
pretty
significant
revenue
losses
here
that
we're
going
to
have
to
deal
with
you
know
again,
there's
a
lot
of
you
know
we're
trying
our
best
to
figure
out
what
that
estimate
is,
and
agencies
all
across
the
the
country
are
trying
to
figure
that
out
too,
and
so
we're
gonna
learn
more
as
more
data
comes
in,
but
this
is
where
rap
for
now,
though,
you
be
prepared
for
it
to
be
canceled
worse.
These
are
the
summarized
categories
of
what
has
changed,
so
the
biggest
driver
here
is
sales
tax
and
Chris.
B
Chris
Burton
is
going
to
talk
a
little
bit
about
sales
tax
and
a
couple
other
these
broader
economic
factors
in
just
a
moment,
but
just
wanted
to
give
a
little
snapshot
here.
So
the
revenue
shortfall
that
we
were
looking
at
compared
to
what
we
appraised,
the
forecasting
is:
seventy
eight
point:
six
million
dollars,
so
we
had
a
little
bit
of
other,
spend
your
savings
which
made
our
overall
deficit.
You
know
beyond
that.
Seventy
two
billion
dollar
number,
but
this
is
this-
is
the
different
components
here.
B
The
biggest
driver
is
sales
sales
tax
and
what
makes
it
so
so
tricky
is
one.
As
you
know,
we
don't
really
know
what
are
we
don't
get
our
information
until
two
months
after
the
last
quarter
ends
so
April,
May
and
June.
We're
not
going
to
know
that
until
the
end
of
August,
that's
gonna
be
problematic,
but
we're
trying
to
figure
out
how
sales
tax
is
performing
when
we're
in
recessionary
conditions
and
we're
gonna
be
socially
distance,
and
so,
as
we
try
to
put
in
these
revenue
estimates
together.
B
You
know
looking
category
by
category
where
we
have
general
retail
we've
got
transportation,
we've
got
business-to-business,
we've
got
food
products,
construction,
internet
sales,
the
good
thing
about
San
Jose.
Is
that
we're
pretty
diversified
revenue
stream?
When
it
comes
to
sales
tax,
we
wish
it
would
hire,
but
but
at
least
we
are
pretty
pretty
balanced,
so
figuring
out
what
the
impacts
are
in.
B
Each
of
those
categories
has
been
a
little
bit
challenging,
but
our
assumptions
are
that
you
know
we
have
some
pretty
significantly
impacted
comparisons
in
those
different
sales
tax
categories
through
the
first
six
months
for
sure,
look
slowly,
starting
to
get
a
little
bit
closer
to
normal,
but
never
never
never
get
back
to
normal
throughout
the
fiscal
year.
But
it's
really
the
first
six
months,
which
is
gonna,
need
that
real
telltale
tell
about
how
much
revenue
is
'le
going
to
come
in?
B
How
much
activity
is
going
to
be
impacted
by
social
distancing
and
the
and
the
lower
economic
in
conditions?
Business
tax
is
also
predicted
to
come
and
lower
property
tax.
By
and
large,
you
see
a
five
point:
eight
million
dollar
shortfall
lowering
their
compared
to
the
previous
estimate,
but
what
we
have
is
most
of
the
property,
the
secured
property
tax
role
is
based
on
the
calendar
year,
29
19,
and
so
that's
close,
and
so
most
of
what
we're
going
to
receive
in
2021
is
going
to
be
based
on
the
2019
calendar
year.
B
What
is
a
little
bit
of
an
outlier
are
those
unsecured
property
taxes.
So
that's
coming
down
a
little
bit
as
well
as
what
we
have
for
Iraq
or
education,
or
revenue
augmentation
fund,
which
is
pretty
hard
for
us
to
estimate,
because
we
don't
really
get
any
data
for
that.
So
we
have
taken
this
down
pretty
significantly.
We
had
already
pretty
assumed
a
pretty
pessimistic
version
for
around
I
think
we're
getting
23
million
this
year
and
we
already
brought
that
down
by
about
to
about
11
1/2
million
little
bit
more
so
pretty
pessimistic
there.
B
But
the
impact
property
tax
is
going
to
be
slight
this
year,
but
probably
more
significant
in
21
22,
which
is
another
reason
why
we
know
this
is
an
ongoing
issue,
so
the
property
tax
bite
is
epilator
tott
tax.
This
is
another
very
significant
hit
here.
So
this
is
a
projection
of
30%
below
2018
19
actuals.
You
know
when
we
don't
have
conventions
going
on.
We
are
limited
in
our
community
events.
B
Does
the
1%
that
goes
to
cities,
and
we
like
to
use
this,
but
that's
how
we
can
compare
to
other
cities
and
and
doesn't
have
any
other
noise
in
it
or
it
has
limited
amount
of
noise,
and
so
it's
kind
of
a
nice
comparison
here.
So
you
can
see
what
we're
looking
at
here
for
how
sales
tax
has
performed
and
when
you
look
at
the
2021
estimate
for
our
sales
tax
versus
the
1819
actuals,
that's
about
a
19
percent
drop
from
where
we
had
been
so
pretty
significant
amounts
there.
B
It
is
in
line
with
you
know,
we're
a
little
bit
more
pessimistic
or
in
line
with
other
jurisdictions
that
are
out
there.
The
state's
when
I
kind
of
dug
into
some
of
the
what
the
state
of
California
is
projecting.
They
were
projecting
a
27%
decrease
from
sales
tax
from
their
previous
estimates
for
2021,
but
when
I
went
kind
of
compared
what
they're
estimating
for
2021
versus
what
they
had
for
1819,
they
were
about
a
20%
reduction,
so
pretty
close
to
line
where
the
state
is
for
now.
B
But
again,
this
information
is
changing
rapidly
and
so
we're
going
to
keep
an
eye
on
it
as
things
proceed
and
I.
Think
now
what
I'm
going
to
do
is
I'm
going
to
switch
over
here
to
have
economic
development,
give
us
a
little
bit
more
in-depth
on
the
economy.
So
please
bear
with
me
as
I
as
I
change
up.
F
You
Jim
good
morning,
I'm
Kim
Wallace,
deputy
city
manager
and
economic
development
director
to
kick
off
your
discussion
of
the
proposed
budget
over
the
next
two
days.
Jim
asked
us
to
provide
some
context
and
some
insight
into
the
current
economic
situation.
We
think
it's
really
important
to
think
together
about
what
the
economic
situation,
which
is
largely
out
of
our
control,
means
for
the
city's
ability
to
provide
services
to
meet
the
needs
of
our
residents,
not
just
this
year,
but
over
the
next
several
years,
and,
of
course
it's.
F
This
is
really
challenging,
because
the
current
situation
is
is
really
the
very
definition
of
uncharted,
there's
clearly
a
very
high
degree
of
uncertainty
on
all
fronts,
and
there
are
many
really
unanswerable
questions
at
this
time.
How
widely
and
for
what
duration
will
the
virus
spread?
Will
there
be
a
vaccine?
If
so,
when?
How
will
the
economy
and
the
individual
people
who
make
up
the
economy
react
in
the
short
term
and
what
might
be
longer-term
social
and
economic
responses?
So
there's
there's
many
really
unanswerable
questions
at
this
point.
There's
also
a
lack
of
current
data.
F
Official
data
sources
generally
run
three
to
six
months
behind,
especially
when
we
look
at
the
county
or
the
city
level,
so
and
because,
of
course,
this
is
uncharted
territory.
There's
really
a
lack
of
predictive
models
so
because
there's
high
uncertainty,
there's
a
lack
of
current
local
data
and
there
really
is
an
inability
to
predict.
We
really
have
to
turn
to
past
experience
and
professional
judgment
and
perhaps
a
little
bit
of
professional
imagination
rather
than
predictions
or
forecasts,
and
we
really
feel
like
if
we
strive
to
have
some
predictions
without
good
data
and
models.
F
It
could
really
give
us
a
false
sense
of
certainty
and
really
blind
us
to
the
range
of
what
might
come
next.
So
what
we
decided
to
do
in
this
presentation
is
really
try
to
reduce
all
the
economic
complexity
and
uncertainty
down
to
the
essence
of
what
really
matters
for
our
local
city
budget.
So
for
this
presentation,
we've
structured
this
economic
outlook
this
year
simply
to
consider
our
three
main
revenue
sources,
sales,
tax
development
fees
and
taxes
and
property
taxes,
and
for
each
of
those
to
consider
what's
happening
now.
F
I
want
to
give
some
public
recognition
to
Chris
Burton
chris
is
the
deputy
director
of
economic
development
who
oversees
business
development
and
economic
strategy
he's
been
an
incredible
partner
with
Nancy
Klein
and
me
in
leading
OAD
and
the
CSA,
and
the
last
several
months
he's
been
a
fantastic
co-manager
with
me
of
the
liaison
branch
in
the
EOC
and
Chris
created
this
presentation.
The
last
couple
days
and
I
think
you'll
find
he's
a
terrific
economic
thinker
and
communicator,
so
Chris
Burton.
H
H
So
yeah
thanks
Kim
appreciate
that
Marin
counsel,
Chris
Burton,
definitely
direct
out
with
OAD,
so
I
wanted
to
begin
by
setting
the
little
bit
of
economic
context
around
the
pandemic
and
especially
around
the
sort
of
necessary
mitigations
which
really
you
know,
we're
in
unprecedented
and,
as
Kim
said,
uncharted
territory,
and
today
we
very
much
remain
in
the
sort
of
acute
phase
of
this
crisis,
with
modifications
to
the
county
order
still
only
allowing
small
amounts
of
businesses
to
return
to
the
work
place.
So
our
current
economic
conditions
continue
to
be
defined
by
this
shelter-in-place
order.
H
This
means
that
we're
faced
with
a
crisis,
that's
not
the
result
of
actual
economic
weakness,
and
so
this
is
why
we're
in
this
uncharted
territory.
It's
merely
a
result
of
having
to
shut
down
large
sections
of
the
economy,
and
that
includes
you
know
most
manufacturing,
restaurants,
obviously
retail
hotels
and
travel.
H
So
this
kind
of
creates
a
paradox
and,
and
this
sort
of
lack
of
real
time,
data
that
Kim
is
describing
and
it
makes
it
really
difficult
to
predict
how
the
economy
will
rebound
and,
as
we
start
to
emerge
from
shelter
in
place,
and
so
there's
been
a
number
of
different
scenarios
that
folks
have
been
talking
about
when
I
touch
on
them
and
just
recognize
them.
Just
briefly
in
this
presentation
and
just
to
understand
kind
of
what
we're
seeing
given
the
nature
of
kind
of
shelter
in
place.
H
So
the
duration
and,
ultimately,
the
transition
out
of
shelter
in
place
are
really
the
defining
factors
and
how
the
region
begins
to
stabilize
and
ultimately
begins
that
recovery
process,
but
we're
also
sort
of
very
conscious
of
those
impacts
of
the
state
and
federal
assistance
packages.
These
funds
become
expended
and
depending
on
whether
or
not
their
subsequent
rounds
of
stimulus
and
we'll
start
to
get
a
much
clearer
picture
of
the
real
economic
impact
which,
based
on
our
experience,
the
previous
recession,
is
probably
cannot
extend
out
over
a
two
to
three
year.
H
Time
frame
next
slide,
please
Jim.
So,
as
Kim
mentioned
we're
going
to
touch
on
three
areas.
The
first
of
those
drivers
we
won't
talk
about
is
sales
tax,
which
is
kind
of
a
proxy
for
consumer
spending
as
well
and
consumer
confidence,
but
it's
also
an
important
source
of
general
from
revenue,
while
sales
taxes
source
as
Jim
was
mentioning
from
a
whole
sort
of
diverse
number
of
transactions
and
areas.
H
Some
businesses
have
successfully
transitioned
to
online
sales,
we've
seen
other
essential
businesses
that
have
incorporated
curbside
pickup
into
their
model,
and
so
when
we
see
the
sales
tax
receipts
for
this
period
after
that
kind
of
delayed
process,
it's
clear
that
we'll
see
a
sharp
decline
in
revenues
as
a
result,
but
then
also
as
we
move
into
kind
of
those
near
term
impacts.
I
think
we'll
continue
to
see
disruption
and
churn,
as
we
understand
the
impact
on
some
of
those
smaller
and
independent
retailers.
H
One
issue
within
that
they
think
will
be
closely
following
his
work
or
availability.
We've
already
seen
and
heard
from
a
couple
of
businesses
that
could
be
open
but
had
initially
closed,
that
their
employees
are
concerned
about
returning
to
work
on
a
safety
basis
and
that
because
of
the
federal
assistance
they
could
continue
to
stay
at
home.
So
you
know
is
the
same
is
true
for
customers
and
their
perception
of
the
health
crisis.
H
It's
more
likely
that
you
know
that
those
perceptions
will
drive
consumer
habits
than
the
actual
health
order
and
then
long-term
I
think
there
are
three
defining
factors
that
Walter
Matt
the
impacts
else
acts
as
we've
a
bit
from
a
budget
perspective.
The
first
is
the
question
of
how
many
transactions
consumers
have
been
forced
to
move
online
because
of
the
pandemic
and
how
many
of
those
will
actually
stay
online.
So
the
convenience
of
that
online
shopping
as
we've
all
been
at
home,
especially
as
delivery
times
continue
to
come
down.
H
You
know:
make
change
consumer
behavior
significantly
in
subsequent
years.
The
second
there
is
with
any
slowdown
or
economic
shock.
Consumers
start
to
consider
resources,
so
they're
less
likely
to
make
some
of
those
major
purchases
on
things
like
appliances
or
vehicles,
and
then,
lastly,
we
anticipate
sort
of
an
acceleration
in
the
ongoing
transition
within
the
retail
industry.
H
So,
as
we
look
back
to
the
last
recession,
you
know
we
saw
not
necessarily
the
recession
itself
impacted
those
retailers,
but
in
the
years
following
the
consumer,
habits
and
spending
patterns,
altered,
sort
of
the
focus
for
those
retailers
and
that's
where
they
ran
into
difficulties,
and
so
we
saw
you
know
a
number
closures.
We've
already
heard,
pre-pandemic
that
there
were
a
couple
of
major
box
retailers
that
were
struggling,
and
certainly
through
this
period,
we're
hearing
more
about
that.
H
So
that'll
be
the
third
sort
of
area
we're
going
to
look
at
closely
so
next
slide,
please
Tim,
and
so
for
each
of
these
areas.
We've
kind
of
wanted
to
give
you
a
few
data
points
just
to
give
you
the
context.
So
in
this
slide
and
that
we've,
you
know
used
in
the
past,
to
demonstrate
our
sales
tax
trends
when
we've
done
this
presentation.
So
this
is
just
the
1%
for
Adly,
burned
sales
tax
in
annual
figures,
and
then
we
have
the
constant
2008
dollars
to
show
the
relative
change
over
time.
H
You
know
if
projects
that
sales
tax
revenue
will
decline
in
the
coming
year,
and
so
obviously
this
would
have
been
higher
without
the
agreement
with
eBay
that
we've
mentioned,
but
it
pretty
much
when
you
consider
all
those
factors
it
pretty
much
puts
us
back
to
the
2008
level.
As
you
can
see
from
the
bottom
of
the
last
recession
it
took
you
know
about
two
or
three
years
to
get
ourselves
back
to
current
levels
after
we
hit
bottom.
H
So
that's
the
kind
of
timeframe
you
know
just
looking
back
that
we
think
is,
is
good
context
to
keep
in
mind.
So
next
slide
Jim,
and
so
this
next
one
is
again
one
of
those
examples
of
created,
creative
data
sources
that
our
team
was
explorance,
exploring
in
the
kind
of
absence
of
real
time
data,
and
so
this
is
year
over
year.
H
So
we
think
that
that's
going
to
be
the
case
as
we
come
out
of
shelter
in
place
as
well,
that
this
consumer
perception
and
whether
or
not
they
feel
comfortable
with
the
public
health
situation
is
what's
going
to
drive
their
spending
patterns
and
behavior,
rather
than
the
sort
of
shelter
in
place.
And
then
we
all
move
back
to
how
it
was
before
next
slide.
Please
Jim!
So
the
next
driver
we
wanted
to
talk
about
briefly
is
development
and
then
obviously
has
impacts
on
development
fees
and
taxes.
H
So,
as
we've
previously
discussed
with
counsel,
construction
has
been
severely
disrupted
by
the
shelter
in
place.
Order
and
projects
are
now
back
underway
and
working
to
complete,
while
residential
projects
are
moving
to
completely.
You
know
their
construction
as
quickly
as
possible.
There
are
some
early
signs
of
hesitation
in
the
commercial
market
and
we'll
likely
see
some
of
those
projects
slow
down
to
understand
how
the
markets
going
to
respond
in
the
coming
months.
H
There
are
obviously
going
to
be
changes
to
the
way
we
think
and
use
think
about
the
news
workspaces
in
the
near
future
over
the
past
10
years
that
that
trend
has
generally
been
to
increase.
Employee
densities
have
put
more
people
in
the
same
spaces,
but
now
because
of
social
distancing,
you
know
plus
some
of
the
carryover
from
employees
working
from
home
and
telecommuting.
We
think
that
folks
can
start
thinking
differently
about
workspaces
and,
as
a
result,
developers
will
likely
want
to
see
how
some
of
those
transitions
play
out
before
committing
further
dollars.
H
So
near
time
we
may
see
some
sort
of
brief
uptick
in
permitting
and
leasing
on
the
commercial
side,
especially
around
existing
spaces,
and
that's
those
businesses.
We
really
understand
the
need
to
spread
out
and
look
to
redesign
their
spaces,
but
it
also
means
that
we'll
see
a
significant
slowing
or
stopping
ultimately
of
speculative
commercial
development.
In
the
long
term.
We
expect
that
their
development
economics
of
residential
will
remain
extremely
difficult.
H
The
primary
challenge
that
you
know
we
know
well
has
been
misalignment
between
costs
and
returns
and,
while
rents
likely
won't
go
down
for
residential,
the
rate
increase
may
slow,
which
is
what's
going
to
give
investors
and
finances
pause
about
investing
in
new
projects.
At
the
same
time,
while
construction
question
costs
can
generally
go
up
quickly,
they
tend
to
take
a
long
time
to
come
down,
and
this
is
probably
going
to
be
compounded
by
disruption
in
material
supply
chains
and
then
labor
availability
as
well.
So
combine.
H
These
lonely
further
increase
the
pressure
on
the
region's
housing
affordability
crisis.
In
the
long
term.
We
think
there's
opportunity
for
development
and
it
remains
to
be
the
sort
of
large,
privately
financed
commercial
development
projects,
especially
given
the
continued
focus
around
regional
transit,
which
means
the
downtown
and
dura
Don
are
going
to
continue
to
be
important
factors
in
the
recovery.
You
know,
projects
at
Google
and
Jaipur
and
the
West
Bank
portfolio
represent.
D
H
Best
potential
for
counter
cyclical
opportunities
around
development,
the
another
important
factor,
just
a
kind
of
bear
in
mind-
is
that
the
impact
of
opportunities
owns
so
billions
of
dollars
were
literally
placed
in
the
other
zones
prior
to
the
Cova
crisis,
and
those
funds
are
going
to
look
to
deploy
in
the
coming
years
as
they
hit
certain
milestones
and
so
again,
downtown
in
that
context
becomes
a
significant
asset
for
counter
cyclical
development
and
next
slide.
Please
Jim
so
again
just
to
provide
some
of
that
context.
On
the
last
recession.
H
Next
couple
of
slides
show
both
the
commercial
and
residential
development
markets.
It's
worth
noting
that
these
charts
are
from
costar,
so
it
may
look
a
little
different
to
what
you
used
to
seeing
based
on
permitting
data,
but
the
first
chart
shows
construction
starts
in
square
feet
and
vacancy
rate
of
our
office
market
across
the
last
15
years.
What's
important
to
note
on
this
chart
is
how
much
we
underperformed
during
the
last
expansion,
so
many
of
those
vertical
bars
represent
single
projects
which
we
can
call
out
the
project.
H
So
you
know
during
the
last
recession
it
was
you
know,
River
Park
in
the
Oracle
Building
we're
going
up
during
that
period.
Then
we
see
that
significant
drought
for
the
five
years
and
then
you
hit
q3
2013
and
that's
samsung
virtually
and
then
you
start
to
see
in
subsequent
years
additional
projects
and
that's
Coleman,
High
Line
and
a
couple
of
other
key
projects
coming
online.
H
What
also
contributed
to
this
sort
of
lack
of
development
was
the
repositioning
and
renovation
and
repurposing
those
some
of
those
existing
building
stock,
which
was
a
far
safer
investment
than
constructing
new
during
that
period.
So,
given
the
sort
of
a
significant
amount
of
major
relocations
and
the
expansions
are
likely
going
to
be
in
hole
for
some
time
and
that
they're
still
capacity
in
our
existing
market,
we'll
likely
see
a
similar
slowdown
for
the
next
two
to
three
years
next
slide
for
Jim,
and
then
we
have
a
similar
chart
for
multi-family
residential.
H
But
this
time
we're
measuring
construction
starts
against
market
rents,
which
is
the
important
factor
in
attracting
the
investment.
So,
similarly,
we
can
see
the
significant
developments
and
events
showing
up
in
that
time
line.
So
I
was
little
to
know
multi-family
residential
construction
coming
out
of
the
last
recession
until
you
hit
sort
of
2011-
and
you
know
through
2013,
which
is
which
trajectory
there
is
all
those
existing
entitlements
in
North
San
Jose.
H
H
So
the
last
of
the
three
areas
and
Jim's
already
touched
a
little
bit
on
on
property
tax
and
why
it's
kind
of
different
to
sales,
tax
and
and
development,
and
sort
of
why
we
see
the
sort
of
longer-term
trends
when
it
comes
to
property
tax.
But
we're
going
to
touch
on
this
briefly.
So
obviously
you
know,
as
we
see
it
today,
the
values
are
based
on
January
1st
valuations
public
payments
would
do
early
in
the
pandemic,
and
so
that's
what's
giving
us.
H
You
know
that
that
steady
projection
over
this
coming
year,
but
in
the
near
term,
I
think
really
where
we
start
to
see.
You
know
the
sort
of
changes
in
the
way
we're
thinking
about
property
tax
is
around
property
sales,
and
that's
because
you
know
these
taxes
generally
assessed
and
collected
sorry
assessed
as
a
result
of
major
shifts
based
on
sales,
so
we'll
expect
to
see
a
decline
in
the
number
of
commercial
property
sales,
as
owners
kind
of
wait
out
this
transition
in
the
market
and
understand
what
the
impact
is
on
valuations.
H
Similarly,
in
the
sort
of
single-family
residential
market,
you
know,
I
think
we'll
see
a
slowdown
in
the
volume
of
sales
over
the
next
two
years,
but
again
a
be
interesting
to
see
what
happens
with
with
values
and
prices.
Just
given
that
we're
still
in
the
midst
of
the
housing
crisis
and
it
there
are
other
sort
of
social
factors
that
are
yet
to
be
fully
understood.
So
what's
the
impact
of
people's
perception
on
their
personal
space,
you
know?
H
And
so
this
is
office,
industrial
flex,
which
is
the
sort
of
majority
of
our
employment
lands
and,
as
you
can
see,
no
one
likes
to
sell
in
a
down
market.
So
as
prices
dropped
through
the
last
recession,
so
did
the
volume
of
sales
and
it's
not
until
they
reach
close
to
the
previous
high
point
from
a
price
per
square
foot
that
portfolios
really
begin
to
trade
with
any
kind
of
volume.
H
It's
also
likely
that
some
commercial
property
owners
will
seek
to
reassess
so
through
the
downturn
based
on
an
assumed
reduction
in
value
in
the
next
couple
years,
which
may
impact
property
tax
revenues.
But
it's
difficult
to
really
understand
how
this
is
going
to
play
out
when
you're
sort
of
using
the
context
of
the
last
recession,
given
that
that
economic
event
was
so
centered
around
major
shifts
in
sort
of
the
real
estate
industry
and
the
economics
that
supports
it.
H
I
think
the
other
important
note
that
we're
thinking
about
is
that,
through
the
last
expansion,
a
lot
of
opportunity
sites
traded.
So
you
know
in
large
part
that's
due
to
changes
in
the
general
plan.
The
opening
up
of
new
mixed-use
opportunities,
so
these
will
tend
to
represent
longer-term,
holds
for
newer
owners
so
bar
any
major
financial
events
for
those
other
entities
or
individuals.
H
It's
unlikely
that
we'll
see
any
kind
of
major
sell-off
of
real
estate
next
slide
vision,
so
when
to
close,
just
by
touching
on
a
couple
of
really
important,
contextual
points
which
aren't
as
directly
linked
to
the
budget,
it's
certainly
important
in
the
context
of
the
local
economy
and,
as
we
think
about
it,
and
the
first
is
obviously
employment,
and
this
is
where
it
gets
really
difficult
to
understand.
The
dynamics
of
the
current
situation,
based
on
the
absence
of
really
detailed
data.
H
As
we
know,
the
nation
faces
unprecedented
rates
of
unemployment,
just
under
15%
at
the
national
level.
We
expect
to
have
a
more
accurate
number
of
the
local
unemployment
rate
and
the
numbers
around
that
in
the
next
week
or
so,
but
we
know
it
will
be
hard
given
the
nature
of
local
industries.
It
may
not
be
as
high
as
the
national
rate.
H
There
was
I
just
read
a
recent
Brookings
report,
which
was
doing
an
assessment
on
the
resilience
of
major
cities,
so
the
economic
impacts
associated
with
million-some
as
they
rank
well
in
part,
because
we
have
a
lower
percentage
of
employment
in
high-risk
industries
throughout
the
kind
of
metro
area,
but
certainly
within
those
industries
that
have
been
impacted.
The
employment
losses
are
severe.
The
pandemic
hit
the
leisure
and
hospitality
sectors
first
and
hardest,
and
we've
already
seen
a
considerable
amount
of
warn
notices
from
companies
in
those
industries.
H
But
then,
as
the
shelter
in
place,
has
continued
job
losses
who
have
kind
of
rippled
throughout
multiple
industries
and
across
different
occupations.
In
some
cases,
that
loss
is
represented
by
furloughs
and
temporary
reductions,
but
as
we
see
the
sort
of
shelter-in-place
transition,
it'll
be
important
to
understand
kind
of
what
percentage
of
those
temporary
furloughs
will
become
permanent
and
then,
ultimately,
at
which
point
they
become
pro
mode.
H
It's
important
to
note
that
this
isn't
a
representation
of
the
unemployment
rate.
It's
the
number
of
new
or
unique
claims
on
a
weekly
basis.
So
it's
important
to
understand
that
this
number
isn't
going
down.
It's
just
that
the
rate
and
recently
unemployed
is
decreasing
over
time
after
the
initial
shock
of
this
sort
of
shelter-in-place
order.
H
So,
as
you
can
see
most
recently,
the
introduction
of
the
unemployment
insurance
for
self-employed
residents
has
become
available
and
in
the
last
week
of
reporting,
and
so
that's
where
you're,
seeing
that
subsequent
increase
on
the
back
end
next
slide,
please
Jim!
So
then.
Lastly,
we
just
wanted
to
close
by
touching
on
the
individual
experience
of
the
current
economic
crisis.
So
well,
you
know
it's
very
much
global
in
nature
and
much
of
the
discussion
that
you'll
hear
focuses
on
the
city
level
or
the
county
level
of
the
state
level
or
even
a
national
level.
H
The
unique
nature
of
this
economic
crisis
or
more
the
sort
of
difference
from
prior
ones
is
that
during
the
Great
Recession
or
the
dot-com,
the
local
economic
impact
occurred
at
an
industry
level,
but
because
of
the
almost
kind
of
suspended
animation
of
a
physical
economy
right
now,
people
who
need
to
be
physically
at
their
place
of
work
during
this
crisis
are
disproportionately
impacted.
This
means
that
the
impact
is
occurring
at
an
Occupational
level
rather
than
in
industry.
H
One
and,
as
such,
we've
been
actively
trying
to
work
and
understand
and
quantify
what
the
impact
is,
so
it
can
plan
and
we
can
act
accordingly.
So,
ultimately,
when
you
break
down
by
occupation
rather
than
industry,
you
can
also
segment
that
data
based
on
typical
education
requirements
and
group
them
into
the
sort
of
what
you
need
to
do.
H
These
occupations
include
food
preparation,
serving
workers,
cashiers
waiters
and
waitresses,
maids
and
housekeepers
landscapers
gardeners
and
many
of
them
majority
female
workers,
many
of
them
a
majority
Hispanic
or
Teno
workers,
and
the
sort
of
median
annual
earnings
range
from
twenty-five
thousand
to
about
forty
nine
thousand
dollars
a
year.
So
you
know
this
is
an
important
factor
as
we
plan
for
and
engage
in
the
stabilization
of
the
local
economy
over
the
coming
months.
B
Great,
so
thanks
Chris,
so
just
want
to
move
through
a
little
bit
just
about
the
overall
budget.
Now
that
we've
kind
of
got
a
little
bit
of
that
contact,
so
here
is
a
donut
that
you
know
the
these
slices
look
about
the
same
they're
just
you
know
a
little
bit
smaller
this
year
in
the
general
fund,
but
we
do
have
a
pretty
diverse
array
of
revenue
sources,
which
has
been
important
for
us
a
little
bit
of
a
buffer
against
some
of
the
other
categories
that
are
going
to
take
a
big
drop
like
sales
sales
tax.
B
B
You
know
those
are
also
going
to
be
impact
as
well,
but
not
to
be
extent,
hopefully
that
some
of
these
other
categories
are
a
t.
Ot
ot,
which
is
a
which
is
a
very
sensitive
portion
of
our
general
fund
revenues,
is
a
pretty
small
slice.
It's
buried
here
in
others.
It's
around
the
one
hovering
around
the
1%
a
little
bit
above
that.
B
But
what
really,
though,
there's
a
lot
of
portion
of
that
to
you
t
goes
to
find
special
funds
or
to
help
with
to
mention
the
facilities
operations
to
help
with
cultural
grants
program
which
will
take
a
bigger
impact
there.
New
on
this
is
their
real
property
transfer
tax,
so
those
are
the
proceeds
from
measure
measure,
D
and
so
those
now.
This
is
the
new
wedge
to
the
pie
for
the
first
time
since
the
voters
passed
that
back
in
March,
which
will
become
effective
on
July
1
overview
of
the
budget
in
general.
B
We've
got
a
little
bit
backwards
here,
so
a
total
budget
of
4.1
billion
about
130
funds.
Our
position
count
is
6500
down
103
from
last
last
last
year,
you
can
see
that
the
slices
of
the
pie
here
we
had
the
general
fund
is
about
26%
capital
funds
about
22%
and
special
funds
about
52%.
Remember.
Special
funds
are
those
generally
those
funds
that
the
revenues
are
restricted
by
nature,
based
on
what
the
services
are
provided.
B
So
the
airport
operations
for
the
wastewater
treatment
plants,
or
example,
water,
the
water
program,
so
all
those
programs
what
we
call
special
funds
and
they're
generally
not
available
to
be
used
for
any
other
government
purpose
like
police
library
fire.
It's
stuff
like
that,
when
we
look
at
how
we
spend
our
money
just
like
Dave
said
we
are
powered
by
people
and
so
the
majority
of
what
we
spend
our
money
on
our
personal
services.
These
are
labor
labor
charges,
and
so
that
accounts
for
67%
of
our
of
our
expenditures.
B
We've
got
a
smaller
slice
here
of
our
non
personal
equipment,
expenditures
which
is
consultant
supplies,
materials,
citywide
expenses,
which
are
those
that
are
sort
of
cut
across
multiple
departments.
We've
got
a
little
bit
of
slice
for
capital
contributions,
I'm
just
to
maintain
a
little
bit
of
our
built
infrastructure
that
is,
general
fund
funded.
We
have
some
transfers.
We
have
a
number
of
things
that
are
earmarked
for
specific
reserve
purposes
or
are
part
of
our
contingency
reserve,
and
that
makes
up
the
balance
of
what
we
generally
spend
our
money
on
and
the
types
of
uses.
B
Like
many
cities,
we
spend
a
lot
of
our
costs
on
called
a
fakey
one
of
our
core
responsibilities.
So
52%
makes
up
a
public
safety
wedge
here,
with
their
other
slices
being
considerably
smaller,
when
we
have
the
capital
maintenance
types
of
departments
like
public
Public,
Works
community
services,
which
are
library
and
our
parks,
arts
departments
are
non
departmental,
that's
that
wedge
of
citywide
and
transfers
which
which
makes
that
pretty
pretty
big
slice
there
too,
and
then
our
general
government,
which
are
more
of
our
strategic
support
functions.
B
When
we
looked
at
as
Dave
mentioned,
to
kind
of
go
back
to
sort
of
approach
for
balancing
budget,
we
want
to
make
sure
that
we
bring
all
of
our
funds
into
balance.
So
we
have
the
general
fund.
We've
spent
a
lot
of
our
time.
Talking
about.
Of
course,
we
also
have
those
special
and
capital
funds
that
we
need
to
eat.
Mindful
of
we
want
to
make
sure
that
we
resolve
our
seventy
1.6
million
dollar
projected
deficits,
we
solve
all
of
it
on
a
one-time
basis
and
we
solve
all
but
19-point
I'm.
B
There
are
going
to
be
certain
things
that
we're
just
not
going
to
be
able
to
do
as
a
city,
especially
over
the
next
six
months,
and
so
there's
going
to
be
some
savings
because
of
that
which
is
recognized
in
the
budget,
but
there's
also
some
service
impact
recognized.
As
of
that
also
so
things
like
the
suspension
of
the
aquatics
program,
the
suspension
of
family
family
camp,
a
one-time
reduction
in
community
center
operations,
those
sorts
of
things-
ours-
are
directly
related
to
the
Cova
and
have
impacts.
There
are
other
things
that
are
also
direct
service
impact.
B
I'll
talk
about
that
in
a
second
again,
just
to
mention
that
our
positions
are
down
about
one
and
a
half
percent
of
a
hundred
three
positions
from
where
it
was
the
year
ago.
Our
strategy,
here
very
broadly
speaking,
we
have
our
deficit
of
seventy
one
point.
Six
million
we
have
on
this
is
our
how
the
budget
is
balanced
in
2021
and
then
how
to
think
of
it
from
an
ongoing
purse
perspective.
So
what
this
says
here
is
that
we've
got.
We
started
with
a
depth
to
the
seventy
one
point:
six
million.
B
Twenty
two,
you
add
nineteen
point,
seven
million
dollars
to
that,
and
so
that's
why
we're
always
very
conscious
of
trying
to
make
sure
that
we
align
our
ongoing
revenues
with
ongoing
expenditures.
The
best
of
our
ability
this
year
is
really
challenging.
So
we
weren't
able
to
do
that
right
at
this
moment
and
we're
able
to
leverage
some
other
sources
here
and
some
reserves,
but
just
want
one
council
to
be
aware:
that's
you
know
that
will
have
a
carryover
effect
when
we
get
into
the
budget
for
twenty
one.
B
B
Stabilization
revert
serve
of
ten
point,
nine
million,
which
is
the
deficit
that
we
thought
we
were
going
to
have
in
2021
back
a
year
ago,
when
we
released
that
that
forecast,
we
always
set
aside
that
money
as
part
of
a
balance
of
trying
to
make
sure
that
all
things
being
equal,
most
or
not,
we
would
at
least
have
be
able
to
solve
that
deficit
on
a
one-time
basis.
So
at
least
we're
cashing
in
that
ten
point:
nine
million
dollars
to
help
us
through.
We
are
recommending
to
use
a
small
portion
of
the
budget,
Stabilization
Reserve.
B
So
it's
a
thirty
two
million
dollar
reserve
balance.
Currently
we
recommend
use
five
million
dollars
back
trying
to
preserve
as
much
as
possible
as
we
can
to
help
us
get
us
through.
If
things
get
worse
and
also
for
the
following,
when
we
know
we're
gonna
have
multiple
years
of
struggling
to
balance
the
budget
so
want
to
preserve
that
budget.
Stabilization
Reserve,
for
as
long
as
we
can
and
a
couple
other
things
I
want
to
point
out
here,
so
we
do
have
some
reimbursement
coming
in
for
the
dirt
on
station
development
planning
from
Google.
B
Just
that
process
is
still
moving.
Moving
forward
to
fund
costs.
We
have
a
annual
grant
from
urban
areas.
It's
our
UIC
grant
different
positions
in
office
of
emergency
management.
We
are
recognizing,
you
know,
because
of
those
kovat
impacted
services,
a
large
portion
of
the
fee
revenue-
that's
represented
here
from
Parks
Recreation
ibid
services
is
related
to
the
suspension
of
those
activities,
along
with
some
ongoing
components
for
some
other
reductions.
B
We
do
have
recommending
the
elimination
of
the
library
late
fines
for
juveniles.
That's
been
a
suspension
for
the
last
couple
of
years
recommending
to
make
that
permanent
as
part
of
this
budget
process,
yeah
reduction
of
revenue
about
two
hundred
thousand
dollars,
and
then
we
have
another
smattering
of
reimbursements
grants.
That
is
also
part
of
it.
On
the
other
revenue
side,
we've
got
measure
a
here,
so
we
have
estimating
about
thirty
million
dollars
in
measuring
proceeds.
B
The
budget
keeps
intact
the
direction
that
council
gave
us
back
in
December
to
have
those
revenues
be
applied
for
almost
professional
services
and
for
affordable
housing.
So
you'll
see
that
in
the
budget
document,
so
those
are
preserved
for
that,
as
indicated
in
the
mayor's
message
also,
we
are
using
leveraging.
B
You
know
debt
as
an
important
tool
here,
so
we
have
some
outstanding
debt
for
the
City
Hall
least
revenue
bonds,
so
we're
gonna
refund
those
a
portion
of
those
bonds.
We're
gonna
be
able
to
recognize
twenty
six
million
dollars
of
one-time
savings
from
a
reserve
that
was
previously
set
aside,
because
we
have
a
good
credit
rating.
B
We
can
pull
that
reserve
out,
use
that
reserve
to
pay
down
debt
elsewhere
and
then
get
ongoing
savings,
so
we're
gonna
be
able
to
pay
off
the
Lois
Lagos
Golf
Course
debt
and
we're
gonna
be
able
to
pay
off
the
debt
related
to
the
streetlight
conversion
I'm
a
few
years
back.
So
that's
going
to
give
us
some
ongoing
savings
there.
B
There's
a
discount
associated
with
that
the
level
of
discount
is
related
to
the
extended
period
of
time
that
the
market
is
is
is
in
a
positive
carrot.
Territory,
as
is
a
because
we
had
for
a
number
of
years.
We
had
to
be
had
done.
There
were
time
pre-funding
strategy
which
has
saved
us
some
some
funds
back
in
1920.
B
We
suspended
that
because
of
the
level
of
discount
offered
by
the
retirement
boards
was
not
going
to
make
a
substantial
difference
for
what
the
additional
borrowing
costs
and
the
interest
earning
reductions
would
otherwise
be
for
us
to
make
those
creep
free
payments.
Now
that
conditions
are
different,
that
discount
for
the
city
is
higher
and
so
want
to
take
advantage
of
that
opportunity.
So
we're
gonna
recommend
to
pre-fund
tier
1
retirement
contributions
as
part
of
our
budgeting
strategy.
B
What
that
means
is
that
we're
going
to
use
some
of
the
cash
we
have
on
hand,
use
some
short-term
borrowing
to
make
that
3
prepayment
and
the
the
savings
from
the
retirement
contributions,
less
the
less
interest
earnings
and
the
the
debt
service
is
going
to
result
in
about
7
half-million
dollar
savings
for
us,
and
so
that's
part
of
our
strategy.
So
you
see
this
little
line
for
reduced
inter
contributions,
that's
what
that
is
referring
to
and
then
on
the
expansion
side.
We've
got.
You
know
a
bunch
of
different
categories
here.
B
This
is
what
the
whole
budget
book
is.
Really
talking
about
I'm,
so
I
won't
get
into
these
too
much.
But
what
you
do
see
is
the
measure
allocation
for
homeless
prevention
in
affordable
housing.
We
are
recommending
to
set
aside
11
point
1
million
dollars
as
part
of
for
the
future
deficit
reserve.
That
was
the
deficit
we
had.
We
had
anticipated
back
when
we
released
the
forecast
a
couple
of
months
ago
that
deficit
surely
was
going
to
get
larger.
B
Oh
we
at
least
want
to
set
aside
the
dollar
amount
that
was
forecast
in
that
document
as
a
starting
point
to
make
sure
lose.
We
have
something
set
aside
for
next
year.
We've
got
a
number
of
limited
investments.
In
some
one-time
services,
we've
got
some
limited
investment
in
technology
and
infrastructure
backlog.
B
B
But
as
the
messages
self
pointed
out,
that
conditions
would
likely
change
and
they
certainly
have,
and
so
we're
recommending
that
at
a
level
of
1
1
million
dollars,
along
with
a
$500,000
for
a
litigation
reserve
for
the
City
Attorney's
Office
for
potential
use,
and
then
we
have
a
smattering
of
other
items
here
and
then
a
number
of
cost
reduction
service,
delivery,
service,
delivery,
efficiencies
and
funding
shifts,
which
helps
us
balance
out
the
budget.
And
so
what
I
do
want
to
point
out
before
I
kind
of
just
summarize,
some
of
the
other
proposals
is.
B
We
have
a
we're
able
to
make
really
good
efforts
to
help
balance
the
budget
with
proposals
that
don't
have
a
significant
impact
on
services,
and
so
you
know
these
are
some
of
the
strategies
that
we
used
to
minimize
impacted
the
organization
and
to
not
have
layoffs,
and
so
I
want
to
just
highlight
these
here.
So
one
of
them,
of
course,
is
the
annualization
4
of
the
revenue
capture
agreement
for
sales
sales
tax
really
important
component.
We've
got
our
pre
funding
of
city
retirement
contributions
at
7.4
million
dollars,
an
ongoing
basis.
B
There
weave
out
the
pay
down
of
debt
as
directed
in
the
mayor's
message.
So
we
are,
we
are
going
to
be
paying
off
so
when
we
refund
the
debt
for
City
Hall
we're
gonna
get
some
debt
service
savings
in
City,
Hall
we're
gonna
pay
off
those
loggers
who's
going,
give
us
some
best
service
savings
and
we're
gonna
pay
off
these
treat
lightly
yeah,
which
is
also
gonna,
get
some
savings,
so
pre
significant
components
there
and
then
fuel
savings,
because
the
price
for
fuel
and
oil
has
really
fallen.
B
So
we
wanted
to
make
sure
that
we're
recognizing
capturing
the
savings
appropriately.
So
these
are
some
of
the
options
that
sort
of
span
all
of
the
other
CSA
just
wanted
to
highlight
them
them
here,
because
they
make
a
really
big
contribution
toward
our
budget
balancing
strategy
and
just
to
highlight
just
a
few
budget
actions
by
CSA
through
too
much
here.
B
Then,
though,
you'll
have
questions
about
these
over
the
next
day
and
a
half
here,
but
we
have
a
we
have
do
you
have
a
proposal
for
public
records,
request
staffing
on
a
one-time
basis
to
make
sure
that
we
have
some
staffing
to
the
help
of
PRA
requests
in
the
police
department.
We've
got
another
investment
for
upgrading
that
computer-aided
dispatch
for
police
Lukas
chest
compression
devices
for
fire
apparatus.
B
We
are
recommending
the
elimination
of
is
warned
ahead
program
where
we
are
also
recommending
the
Special
Victims
Unit,
adding
one
police
lieutenant
for
the
new
SVU
unit
in
Police
Department
and
some
civilian
ization
savings
in
the
fire
department,
where
they
fire
apparatus,
reorganization
and
and
as
well
as
we
also
recommending
a
the
elimination
of
some
vacant.
Cso
positions
in
the
police
department
in
Neighborhood
Services,
a
couple
of
key
one-time
ongoing
investments
that
we
were
able
to
fit
in
here.
So
the
transitional
jobs
program,
of
course,
at
San,
Jose
bridge
another
one-time
investment.
B
Here
the
project
hope
expansion.
We
have
six
sites
that
are
in
the
ongoing
based
budget
last
year,
there's
an
additional
three
that
were
funded
on
a
one-time
basis.
We
didn't
get
to
those
three
sites
in
this
year,
so
we're
recommending
to
have
those
funded
on
a
one-time
basis
in
2021
also
recommending
the
ongoing
staffing
of
the
babys
American
Cultural
Center.
B
We
have
some
special
funding
for
the
education
digital
literacy
initiative.
Again,
some
one-time
funding
for
the
beautify
SJ
brick
grants.
Well,
we
are
recommending
a
reduction
library
cost
which
will
result
in
four
hours
per
week
for
branch
library
hours
again,
and
then
we
talk
here.
We
have
some
some
cost
savings
for
the
Community
Center
and
aquatics
past
and
the
family
camp,
which
are
impacted
by
Ovid.
B
We
are
recommending
also
a
reduction
of
about
1.25
million
for
watering
of
parts,
but
we
think
we
can
accomplish
this
without
actually
having
any
browning
of
turf,
but
just
being
very
diligent
about
how
the
water
use
is
being
managed
and
monitored
and
then
also
the
place
making
an
act.
Activation
related
Eva
cayenne
and
Eva
parts
was
funded
on
a
one-time
basis
in
2021,
but
again
due
to
the
restrictions
that
we're
all
going
to
face.
That's
recommended
to
be
pulled
out
of
the
budget
here.
A
few
items
for
CED
again
dirt
on
stationery
development
planning
continues.
B
We
have
some
affordable
housing
and
transaction
staffing
in
OD.
We
have
a
minor
investment
for
business
outreach
and
policy
development.
Recommending
a
blank
buster's
program
to
continue
on
a
one-time
basis
also
provides
one-time
funding
for
the
ad
you
ally
program.
We
are
going
to
see
some
savings
for
the
rapid
rehousing
funding
shift
from
multi
source
from
the
jogger
plans
at
the
multi-source
housing
fund.
B
Give
the
general
fund
a
break
for
a
couple
of
years
there,
and
then
we
also
do
have
some
strategies
to
address
the
anticipated
revenue
shortfall
because
the
the
lower
activity
anticipated
in
the
private
development
market
and
we
need
to
adjust
some
cost
accordingly
there
in
our
fee
fee
program.
So
we
have
some
staffing
reductions
and
some
use
of
reserves
to
balance
this
tool
in
the
EU
SCSA,
we've
got
a
number
of
items
here
for
regional
wastewater
facility.
Radio
systems
upgrade
maintenance
for
our
code
generation
engine,
a
transition
for
bio
solids
management.
B
We've
got
some
additional
staffing
for
a
community
energy
departments
and
we
are
continuing
some
one
time
for
the
climate.
Smart,
San,
Jose
implementation
trying
to
be
strategic
there
to
keep
that
project
going
forward,
tas
transportation
aviation
we've
got
a
number
of
folks
here.
Many
of
these
are
special
fund
related,
but
we
so,
for
example,
we
in
our
special
assessment
district,
a
number
of
instruction
projects-
are
going
to
remove
move
forward
continuing
on
a
one-time
basis,
some
contract
vehicle
abatement
funded
by
the
parking
fund.
B
Again
a
limited
investment
here
for
the
beautify,
apparently
not
beautify,
but
beautify
a
San,
Jose
landscape
maintenance
program.
We've
got
at
the
airport,
we
are.
The
airport
apartment,
is
being
very
prudent
to
conserve
costs
and
eliminate
some
vacant
positions
to
deal
with
their
challenges
over
in
the
airline
industry
and
lower
levels
of
passenger
activity.
B
So
we've
got
some
staffing
reductions
and
non
perfect
limit
reductions
for
in
the
passenger
processing,
transportation,
business
development
and
physical
administration,
as
well
as
airside
terminal
operations
and
a
little
bit
of
reduction
in
the
Transportation
Department
related
to
neighborhood
traffic
management,
staffing
and
streetlight
and
maintenance
staff
do
support.
We
also
have
a
few
service
impacts
here
and
a
few
staging
ads.
So,
like
I
said,
we
always
have
a
little
bit
in
each
year
where
we
have
to
invest
in
some
capital
improvements.
B
We
have
3.5
million
dollars
in
total
for
capital
investments
in
in
in
that
are
funded
by
the
general
fund,
a
big
component,
our
elevator
modernisations
at
the
police
building.
So
that's
phase
two
that
project
we
are
adding
a
couple
of
engineering
staff
for
Public
Works
to
help
with
CIP
staffing
plan.
We
are
continuing
again
the
second
year
that
was
authorized.
Last
year's
mayor's
march
budget
message
for
proactive
legal
enforcement
of
blighted
and
nuisance
properties.
We
are
allocating
recommending
$100,000
to
continue
to
work
on
equity,
education
and
analysis
framework.
B
B
We've
got
community
meetings,
the
first
one,
which
was
last
last
night,
that's
hosted
by
the
mayor's
office.
Those
continue
to
20th
we've
got
two
public
hearings
or
on
the
21st
one
on
the
15th.
The
15th
will
include
the
hearing
for
the
mayor's
June
budget
message,
which
is
scheduled
for
release
on
the
10th,
and
we
have
a
council
review
and
approval
the
mayor's
new
budget
message
on
the
16th
and
on
June
23rd.
B
A
Great,
thank
you
so
much
Jim,
and
thanks
also
to
Chris
and
Kim
for
your
presentations
as
well.
I'm
gonna
try
to
make
sure
I
get
the
screen
pulled
up
properly,
we'll
open
this
up
and
health
for
some
questions
I.
This
is
just
on
the
general
issues
that
you've
raised.
We're
obviously
going
to
be
going
into
greater
detail
about
the
specific
areas
shortly:
I
right,
Jim,
correct.
B
G
Thank
You
mayor,
thank
you
all
for
your
presentation
as
sobering
as
it
is
like
to
go
in
with
our
eyes
wide
open,
Jim
I
have
a
couple
of
questions
for
you
and
I
lost
track
of
this
slide
count
I'm.
Sorry,
it
was
about
the
nineteen
point,
seven
million
that
were
covering
on
one-time
funds,
and
then
you
said
something
that
was
a
little
bit
disturbing
and
it
was
yet
this
one
slide.
14
thank
you,
which
is
that,
whatever
our
deficit
for
next
year,
we
have
to.
G
B
That's
I
mean
that's
a
very
important
question
because
it
could
very
well
be
worse,
I
think,
there's
well
I.
Think,
there's
a
few
reasons
why
we
took
this
approach.
One
of
them
is
because
there
still
are
some
unknowns
out
there,
so
this
is
forecasting
really
without
a
neck
at
all,
so
coming
up
with
new
ways
to
estimate
the
revenue
really
a
lot
of
uncertainty
there
about
what
our
short,
although
ultimately
one
two
is
that
we
want
to.
You
know
we
have
a
pretty
compressed
timeframe
to
do
this.
B
B
So
so
we
know
we
need
to
sort
of
do
that
now,
but
we
also
need
to
be
mindful
that
we
just
don't
have
the
time
it
would
take
the
way
we
would
you
know
in
a
normal
budget
year
where
we
would
have
this
deficit
identified
back
in
December.
We
be
able
to
work
through
several
months
being
really
thoughtful
about
which
ongoing
reduction
we're
going
to
take,
because
we
know
when
we
have
to
balance
all
this
ongoing
basis
impact
to
the
community
grow.
B
So
we
want
to
make
sure
that
you
know
we
take
a
reasonable
chunk
here
that
we
can
get
at
mindful
that
you
know
absent
more
time.
You
know
it's.
It's
dicey,
er,
the
the
more
we
have
to
dig
into
the
service
in
impacts.
The
other
thing
too
is
we
do
have
that
budget
Stabilization
Reserve
at
thirty,
thirty,
two
million
so
want
to
be
able
to
you
know
that
was
set
aside
for
things
like
like
this
to
help
bridge
through
so
then
we
can't
grab
it
all
and
on
the
basis
in
one
year.
B
G
That's
really
helpful
and
I
appreciate
you
elaborating
on
that.
I
also
wonder,
and
we
haven't
I
know
we
haven't
talked
about
it,
but
is
there
any
amount
of
our
ongoing
deficit
or
I?
Guess
it
would
be
one-time
money,
but
that
the
that
cares,
money
that
we
got
will
will
backfill,
because
so,
for
example,
we
have
Public
Safety
working
on,
you
know,
kovat
related
calls.
We
have.
G
B
That's
really
good
question
so
that
those
expenses
and
the
cares
Act
funding
is
not
part
of
this
budget.
That's
presented
here,
so
we
are
working
through
that.
So
we're
working
through
you
know
the
care
Zach
has
you
know
some
guidance
out
there?
It's
been
evolving
a
little
bit.
We
want
to
be
one
yeah,
there's
I'm,
you
know
just
back
a
second,
probably
two
things
that
we're
really
trying
to
focus
on.
B
One
is
the
nature
of
what
the
city's
response
has
been
and
will
be,
is
evolving
and
so
trying
to
nail
down
what
that
cost
is,
is
really
an
important
component
of
it.
So
before
we
know
what
that
is
really
going
to
be,
we
don't
want
a
budget
for
that.
Yet
do
we
want
to
be
very
careful
of
what
the
what
the
eligible
cost
for
care
is
act?
B
Funding
is
so
some
of
the
guidance
for
both
Kara's
and
FEMA
has
been
shifting
a
little
bit
since
it
was
first
released
before
we
make
a
commitment
on
which
costs
we
can
reimburse
ourselves
for
want
to
make
really
sure
that
we
can
keep
that
money.
You
know
what
we
don't
want
to
do
is
recognize
a
ton
of
savings
and
then
be
able
to
give
it
back,
but
absolutely
that's
the
importance
any
part
of
our
process
as
we
go
through
the
end
of
the
fiscal
year.
B
G
B
So
there
yet
there
may
be,
you
know,
to
reimburse
some
of
the
the
city's
cost.
You
know
there
will
be
some
other
items
that
will
come
into
play
again
now
I'm,
you
know
you
want
to
point
out
that
and
I
know
you
just
said
it
whatever.
The
cares.
Act
helps
us
with
our
one-time
dollars
and
we
have
an
ongoing
problem.
So
that's
gonna
sort
of
help
us
maybe
in
some
limited
extent,
but
we're
always
going
to
be
thinking.
G
Yeah
just
helps
to
soften
the
blow.
It
doesn't
protect
us
from
it
from
it
completely
and
then
the
other
question
I
had
was
about
the
I.
Think
it's
on
the
the
next
slide.
It
might
be
15
or
yeah.
Here
it
is
so
15
the
interest
earnings
on
the
pre-funding
of
city
retirement
contributions.
You
have
that
listed
as
in
as
an
ongoing.
B
What
that
actual
ongoing
amount
is
going
to
be
is
going
to
depend
again
on
next
year,
because
next
year
the
retirements
are
are
going
to
shift
the
amount
of
pre
funding
is
going
to
shift
so
all
things
being
equal.
It's
a
seven
and
a
half
million
dollar
savings,
which
is
you
know
how
we
think
about
our
ongoing
adventure.
So
it's
do
we
and
I
guess.
Maybe
the
further
say
is
that
what
this
assumes
is
that
absent,
different
data
that
that
retirement
frequent
contribution
will
be
something
similar
in
the
in
the
following
year.
B
It
did
not
pencil
out
right,
so
I,
but
so
yeah
did
not
pencil
out
was
why
we
didn't
engage
in
it
in
1920.
It
seems
to
work
now
we'll
have
to
reevaluate
that
in
the
following
year,
but
but
for
our
purposes
of
what
they
think
the
ongoing
retirement
labor
costs
are
going
to
be.
Those
assumptions
are
carried
forward
on
an
ongoing
basis,
though
okay
in
actuality,
what
the
actual
actuarial
valuation
of
this
fiscal
year
will
substantially
impact.
What
that
amount
is
right.
G
Okay,
do
you
think
that
by
the
time
we
come
back
in
we,
you
didn't
talk
about
the
contingency
plan
for
sort
of
phase,
two
of
cuts,
which
is
totally
fine,
but
we've
we've
been
talking
about
it.
It
was
in
the
message
by
the
time
we
come
back
for
that
in
August
or
September.
Will
we
also
know
about
how
we
can
utilize
backfill
reimburse
ourselves
whatever,
with
with
the
care
Zacks
fund
funds?
Will
that
shift?
B
Well,
I,
you
know
I
think
we're
just
gonna
be
a
combination
of
both
because
we're
going
to
be,
but
I
don't
want
to
wait
until
August
to
have
that
now
we
want
that
what
our
response
is
going
to
be
for
kovat
is
evolving,
but
there
are
some
cost
of
living
to
plan
for
in
the
future.
So
we
want
to
identify
what
those
are
before
the
start
of
the
fiscal
year
begins.
B
We
had
some
of
that
discussion
on
Tuesday
about
you
know
what
some
of
those
those
buckets
are,
so
we
would
want
to
have
that
and
they
going
to
be
a
combination
of
here's.
What
we
think
our
future
costs
are-
and
here
is
you
know,
based
on
what
we
think
that
amount
is
and
then
based
on.
What
we
think
may
be
potentially
eligible
here
is
what
we
want
to
reimburse
that
are
eligible
for
reimbursement.
I
would
like
to
do
that.
B
You
know,
ideally,
I
didn't
want
to
do
that
before
August,
but
that
may
have
hurt
in
multiple
matches
too.
So
it
may
be
that
we
take
a
chunk.
You
know
now
for
what
is
appropriate,
and
then
we
keep
monitoring
because
again,
I
think
this.
Our
response
to
code
is
going
to
evolve
and,
frankly,
the
funding
sources
and
the
eligibility
can
also
football
too,
and
so
it's
not
uncommon
for
guidance
to
change
and
and
then
for
us
to
be
in
a
position
where
we
have
to
give
some
money
back.
G
Thank
you,
so
just
one
last
I
think
clarifying
question
so
when
the
guidance
changes
its
whatever
the
most
recent
guidance
is
that
that
applies.
So,
if
you're,
if
you're
going
along
and
you're
spending
based
on,
let's
say
April
25th
guidance
and
you
and
you're
reimbursing,
and
then
they
change
it
on
May
5th,
whatever
you
spent
based
on
April
25th
guidance,
if
it,
if
it's
different
from
the
May
5th
and
you
have
to
those
no
longer
become
eligible
and.
B
How
I
think
I'm
getting
a
territory
that
I'm
I
don't
really
know
that?
Well,
all
I
can,
although
I
will
maybe
say-
and
maybe
you
know
I
get-
has
lead
to
jump
if
he
knows-
or
maybe
you
read
potentially
but
I
as
the
guidance
that
we've
seen
as
change
has
evolved.
You
know
I
what
I'm
hoping
is
that
there,
the
guys
out
there
doesn't
revert
back
I,
don't
think
that
will
be
the
case.
I
think
it
would
be
just
the
further
flare,
clarification
and
refinement
of
the
guidance.
B
D
I
think
you
have
a
ripe
Jim,
and
certainly
you
know
where
the
process
has
been
working
and
others
know
more
than
I,
but
if
it
is
a
refinement,
it
is
a
clarification.
It's
not
unlike
what's
happened
with
the
public
health
orders
that
they
come
out
and
then
there's
through
FAQ
process.
Another
process
continued
almost
refinement
of
and
clarification
of
what
the
order
is
so
same.
Things
happening
with
with
the
funding
sources,
so
I
think
Jim's,
right,
I,
don't
think
we'll
see
any
type
of
like
reversion
or
anything
like
that.
G
Okay,
thank
you
I.
You
know
I
just
want
to
say
I
know,
I
say
this
every
year
at
budgeting
time,
but
it
continues
to
be
true.
I
really
appreciate
the
cautious
and
conservative
and
caretaking
approach
that
that
you
all
have
to
crafting
a
budget
that
walks
a
very
fine
line
at
in
the
best
of
times
and
really
minimizing
the
number
of
service
reductions
and
the
number
of
personnel
reductions.
I.
Much
appreciate
that
and
I
think
having
this
to
to
face
approach.
G
While
we're
waiting
for
more
clarification
and
more
data,
I
think
it
makes
a
lot
of
sense
and
I
hope
that
come
August.
We
will
all
we
won't
have
to
take
those
extra
steps,
so
I
just
I
just
really
appreciate
that
we've
continued
being
cautious
and
not
so
that
we
don't
have
any
other
terrible
surprises
at
the
end
of
this.
Thank
you.
I
B
Well,
you
may
think
again:
that's
I
think
in
the
heroes
Act
is,
is
in
development
and,
if
that
were
to
come
to
pass
or
some
other
legislation
would
come
to
pass,
that
would
directly
reimburse
the
city
for
lost
revenue.
I
mean
you'd
certainly
want
to
use
that
that
funding
as
much
as
we
as
we
as
we
could
so
you
know,
what's
gonna
happen
at
the
end
of
August
is,
is
we're
gonna
get
our
sales
tax
data?
Let
me
get
our
sales
tax
data
for
how
1920
ended
so
in
April
May
in
June.
B
That's
when
we
find
out
how
well
we
did
for
her
core
sales
tax.
That's
going
to
be
one
of
the
key
drivers,
the
other
key
part
we're
going
to
look
at
is
working
with.
You
know,
folks,
an
economist
to
see
how
how
our
region
and
the
economy
as
a
whole
is
doing
in
July
and
August
as
well.
So
are
we
opening
or
we
had
do
we
have
more
Act
activity
or
less
activity,
and
so
those
factors
would
say
that
a
we
didn't.
You
know
our
shortfalls
way
way
bigger
than
we
thought
or
we're
doing.
Okay.
B
So
that's
what
we
would
probably
think
about
coming
back
to
council
at
the
end
of
September
for
those
contingency
package
plans
which
I
apologize
for
outputting
into
this
presentation
here,
which
would
be
if
that
was
taken
as
package,
would
be
another
12-point
million
dollars
of
reductions
and
a
little
over
70
positions.
So
that
would
be
pretty
it's
three
step.
I
think.
If
we
had
information
about
some
revenue
and
sustained
revenue
reimbursement,
we
would
look
at
that
very
carefully
and
and
see
how
well
that
would
help
us
on
and
always
considering
that
we
have.
B
I
And
the
turn
around
turn
around
time
could
incorporate
that
in
again.
This
is
by
no
means
done.
It's
a
proposal
at
this
point.
It
is
not
real,
but
the
2020
allocation
for
the
city
of
San
Jose
would
be
almost
four
hundred.
Twenty-Eight
million
in
the
2021
allocation
would
be
almost
two
hundred
fourteen
million
for
the
city
of
San
Jose.
Would
we
have
I
know
this
is
very
accounting
intensive,
but
we
could
we
could
would
have
the
bandwidth
to
incorporate
all
of
these
billing
and
changes
in
time
for
when
we
come
back.
D
Yeah,
so
I
want
to
reassure
everyone
that,
if
we're,
if
we're
seeing
those
types
of
monies,
if
the
harrows
Act
comes
forward,
it
has
that
that
ability
for
lost
revenue
and
it
certainly
if
it
was
a
multi-year
approach
which
would
be
wonderful,
we're
going
to
want
to
acknowledge
those
things
ASAP
in
our
budget
process
and
and
we
won't
hesitate
to
come
to
you
and
send
and
get
your
authorization
to
acknowledge
those
monies
and
program
those
monies
and
offset
all
these
impacts.
Absolutely
okay,.
J
You
a
really
good
presentation,
although
not
as
positive
as
we
had
hoped,
but
we
also
knew
that
was
coming.
So
it's
it's
a
reality
of
check
of
where
we
are
right
now
and
so
much
uncertainty
that
exists
in
our
little
personal
household
environment,
but,
to
the
greater
extent
the
city
of
San,
Jose,
and
then
the
country
is,
as
we
all
know
so.
I
I
want
to
echo
councilmember
Davis's
comments
about
appreciating
your
conservative
approach
to
the
budget
and
looking
at
refunding
of
debt
as
a
way
to
save
ongoing
expenses.
J
Also
pre
funding
ARP
repaying
the
debt
to
the
retirement
funds
makes
prudent
sense
too,
and
I
appreciate
that
and
Dave
I
really
want
to
appreciate
that
you
truly
emphasize
that
we
are
organization
powered
by
people
and
that
you
reached
out
to
our
staffs
and
asked
for
their
input
and
maybe
even
use
some
of
their
input
in
some
in
how
the
budget
was
crafted
and
I
really
truly
appreciate
that,
because
this
is
a
stressful
time
for
everyone
we're
sheltering
in
place,
it's
not.
We
don't
know
what
the
world
is
going
to
look
like.
J
Our
health
is
potentially
at
risk.
Our
economic
condition
is
at
risk.
We
already
know
that
so
I
appreciate
that
you
are
truly
emphasizing
our
staff.
That's
really
important,
even
though
there
isn't
some
some
uncertainty
in
some
of
the
employees.
That
will
not
get
a
position
when
the
cutbacks
are
made.
It's
still
in
Fortin
to
encourage
the
discussion
with
them
and
treat
them
with
respect.
So
I
I
truly
appreciate
that
I'm
ungrateful
that
so
keeping
this
high-level,
cuz
I
have
a
lot
of
questions
about
the
CSA
op
and
your
operating
budgets
not
get
to
that
later.
J
B
So
the
the
biggest
difference
what's
happening
in
22
23,
is
a
payoff
of
a
portion
of
a
slice
of
the
unfunded
actuarial
liability,
I
think
in
police
and
fire.
So
there's
a
slice
there
that
gets
paid
down,
which
is
why
we
have
that
bump
up,
and
so
so
that's
what's
going
on.
So
we've
been
kind
of
tracking
that
it's
been
consistent
throughout
the
year,
so
it's
getting
closer
and
closer
to
us.
So
it's
a
little
bit
less
of
a
retirement
costs,
which
is
what
shows
up
there.
Okay,.
J
So
it's
not
that
you
consider
the
we
will
be
out
of
the
recession.
By
that
point,
darn
I
was
hoping
it
was
just
a
calculation
error,
but
it's
more
that
we
are
pre-funding,
the
retirement
fund
in
21
22
and
that
bump
up
in
a
number
as
opposed
to
in
22
23.
We
won't
have
that
same
additional
expense.
Is
that
what
you're
saying
it's.
B
Really
more
I
think
they're
the
the
actual
analysis.
They
have
always
planned
to
have
this
pay
down
in
22
2023,
and
so
it
has
been
part
of
the
plan
for
how
they
sort
of
chunked
out
the
different
components
of
the
retirement
obligation.
So
one
of
those
obligations,
a
little
small
slice
of
it,
it's
paid
off
in
22,
20
23,
which
is
why
that
you
know
amount.
B
A
A
So
this
recession
case
was
an
imaginary
recession,
have
nothing
to
do
with
the
reality
that
we
know
today,
and
what
we
know
today
is,
for
example,
that
the
recession
of
course,
is
much
more
immediate
and
much
steeper,
and
that
thirty
eight
point
three
million
number
is
at
least
under
the
current
projections
north
of
seventy
million
in
the
hole
and
may
well
get
worse.
So
I
don't
want
anyone
thinking.
This
is
the
recession
projection
today,
right
clarification.
B
J
K
Yeah
Thank
You
mayor
one
question
I
have
is
about
the
refunding
of
some
of
the
dead
I.
Think
specifically,
what
was
mentioned
was
refunding
of
the
death
for
City,
Hall,
I,
believe
and
I'm,
not
sure
I'm,
trying
to
think
back
to
some
of
the
slides.
Was
there
an
actual
I'm
trying
to
think
back
to
exactly
what
the
amount
of
savings
are
gonna
be
once
we
refund
that
savings.
B
The
amount
of
are
going
savings
for
all
of
our
debt
service
would
be
about
4.2
million
million
dollars.
It's
about
eight
hundred
thousand
dollars
just
for
the
City
Hall
that
portion
itself
nets.
The
general
fund
slice,
there's
other-
will
be
savings
so
that
all
the
other
funds
that
contribute
to
the
City
Hall
effect.
Yes,
service,
progestin
in
the
general
fund.
That's
about
a
hundred
thousand
dollars
about
another
1.3
million
dollars
for
those
Los,
Lagos
I,
think
about
two
million
dollars
for
the
streetlight,
and
so
all
said
and
done
it's
about
I!
K
B
So
the
what
makes
this
strategy
work
is,
there
is
a
reserve
that
was
set
aside
for
the
previous
bond,
and
Julia
can
jump
in
at
any
time
to
to
slap
me
down
if
I'm
wrong
here.
But
when
we
we
did
the
previous
issuance
of
the
tax-exempt
debt
for
for
City
Hall.
We
had
to
set
aside
a
reserve
about
twenty
six
million
dollars
out
the
trustee
held,
says:
hey
in
case
things,
go
bad.
We're
gonna,
keep
this
reserve,
and
so,
but
now
because
of
credit
rating
is
we're
a
well-regarded
credit
worthy
institution.
B
But
it's
also
consistent
with
how
the
council
has
directed
us.
It's
actually
a
policy
City
Council
policy
to
leverage
debt
savings
to
pay
down
other
other
debt.
So
this
is,
you
know
it
helps
us
with
our
general
fund
shortfall.
It's
also
aligned
with
previous
council
policy
to
make
sure
that
will
any
savings
that
we
get
from
these
refunding
use
that
to
pay
down
other
other
day.
B
That's
kind
of
the
same
approach
that
we
did
when
we
paid
off
when
we
sold
we
sold
Hays
be
able
to
take
those
groceries
from
Hays
to
pay
off
Rancho
and
pay
down.
Those
boasts
boast
Lagos
now.
Finally,
we
can
pay
off
Los
Lagos
and
even
back
before
that,
I
think
it
was
twenty.
As
a
few
years
back,
we
did
a
prior
refunding
in
City
Hall
that
debt
service
I
helped
us
pay
down
some
of
the
debt
on
Hayes,
which
allowed
us
to
sell
hey.
B
K
K
K
B
So
there's
a
portion
there,
so
limiting
the
debt
totally
gives
the
city
a
little
bit
more
freedom
to
use
that
for
what
the
council
wishes
in
the
future.
The
other
thing
think
about
maybe
is
kind
of
going
back
to
this
slide
here.
So
we've
solved
our
20:21,
we
saw
upon
a
ongoing
I
mean
we
saw
that
in
in
in
total,
on
an
ongoing.
We
have
19,
please
use
nineteen
point.
Seven
million
dollars
of
one-time
funding,
help
balance
us
so
an
ongoing.
B
K
Okay,
alright,
okay!
Well,
thank
you
for
that.
I
think
that
helps
me
better
understand
it
and
again,
I
mean
I,
see
the
inherent
value
in
that
I'm
just
trying
to
wrap
my
head
around.
Maybe
other
possibilities
right,
let
that
sort
of
hear.
My
question
was
going
I
appreciate
the
the
the
response.
One
other
question
in
the
last
question:
I
have
is
related
to
the
fact
that
a
consistent
theme
that
I'm
hearing
or
sort
of
built
into
everything
that's
being
said
is
we
need
more
revenue
right.
K
If
and
if,
in
fact
that
does
pass
and
the
voters
do
approve
that,
have
you
guys
thought
about?
Are
we
actively
thinking
about
other
revenue
sources
and
whether
the
city
would
would
city
administration
consider
bringing
that
forward
to
the
City
Council
for
up
or
down
vote
as
to
whether
that's
something
we
want
to
support,
given
that
it
would
potentially
provide
additional
revenue
to
the
city.
B
D
D
You
know
thin
margin
if
you
will
so
revenue
sources
are
an
important
in
seeking
those
revenue.
Sources
are
important
for
us.
You
know
I,
think
fundamentally
addressing
that
imbalance
would
be
the
best
protection
you
know
moving
forward,
but
you
know
certainly
not
ruling
out
other
measures
that
we
would
want
to
take
I.
You
know,
I,
don't
think
we're
contemplating
at
this
point,
bringing
forward
any
specific
measure,
but
I'll
ask
Lee
to
kind
of
give
you
a
little
bit
more
context.
There.
J
Yeah
and
as
Dave
mentioned
kind
of
the
the
underlying
imbalance
would
be
kind
of
the
fundamental
approach
that
we
would
take
to
the
analysis
of
that
ballot
measure.
Given
you
know,
ninety
actually,
given
100
percent
of
the
IGR
team,
has
been
focused
on
the
recovery
process
for
kovat
19
and
as
councilmember
as
far
as
I'd
mentioned
kind
of
the
fight
within
Congress
at
this
time,
unless
otherwise
directed
it's,
not
our
anticipation,
it's
it's
not
our.
J
K
Well,
I
think
we
have
some
time
right.
I
mean
this
is
coming
over
for
us
in
November,
I
I
think
it'd
be
worthwhile
to
look
at
everything
right
to
take
a
multi-faceted
approach
of
looking
at
different
revenue,
whether
it's
a
ballot
measure,
whether
it's
a
refunding
and
bonds
whatever
it
may
be,
I
think
it'd
be
worthwhile.
You
know
to
those
folks
that
sit
on
rules,
and
certainly
some
of
us
who
maybe
submit
something
the
rules
but
I,
think
it'd,
be
worthwhile.
K
Effort
for
us
to
yeah
have
a
little
bit
of
dedicating
staff
time
to
looking
at
that.
Maybe
not
now
right,
but
maybe
you
know
a
little
further
down
the
line
because
I
think
the
support
of
the
city
as
a
signatory
to
someone
is
being
supported.
This
measure,
or
this
initiative
I
think,
would
be
very
important
getting
over
the
finish
line
and
I
think
it
has
a
potential
to
bring
in
the
revenue
that
we
so
desperately
need.
So
anyway,
thank
you
for
that.
We've
cruciate.
L
H
H
H
B
Don't
think
they
have
anything
that
particularly
contemplated
I
know
that
as
part
of
our
as
part
of
our
you
know,
mergency
responds
in
the
EOC
and
we're
looking
at
the
you
know
the
types
and
amounts
of
and
the
burn
rate
for
PBE
in
general,
but
don't
have
a
specific
strategy
here
to
sort
of
pre
pre
free,
buy
a
lot
of
products,
I
think
what
we
are.
You
know
what
maybe
a
little
bit
of
a
silver
lining.
B
Is
that
no,
although
it
takes
a
little
bit
of
time,
it
may
be
that
some
of
the
construction
cost
for
some
future
capital
projects.
We
may
be
able
to
get
some
more
value
out
of
out
of
that
I
know
in
the
last
recession,
for
example,
the
the
dollars
we
able
to
stretch
really
far
for
the
last
big
renovation
of
the
Convention
Center.
So
there
may
be
some
benefits
there
that
we
may
be
able
to
take
okay.
L
I
L
L
B
L
You
know,
I,
don't
think
that
the
that
the
sergio's
the
tax
that
Sergey
was
mentioning
I,
don't
even
think
it's
gonna
pass.
But
but
this
wouldn't
mind,
especially
if
the
City
Council
supports
it,
I'm,
hoping
that
the
staff
kind
of
brings
it
back
for
us
to
discuss,
because
we've
been
discussing
this
off
and
on
for
a
while
and
I'm
hoping
it
comes
forward
again
before
the.
D
So
thanks
councilmember,
a
role
I,
think
I
think
we
are
planning
on
coming
back
and
we
reconnecting
on
that.
I
do
believe
that
the
card
rooms
are
experiencing
some
pretty
significant
it
PACS
right
now
and
so
we'll
have
to
you
know,
figure
out
what
that
does
to
them
and
their
viability
moving
forward.
So
but
I
do
think
we'll
need
to
loop
back
with
you
on
that
subject.
The
whole
council
yeah.
L
E
Think
you
so
my
question
and
first
of
all,
I
just
want
to
just
think
all
staff
I
know
that
I
can't
imagine
doing
the
work
that
you're
doing
it
in
the
EOC
and
then
also
taking
care
of
our
budget
during
these
very
very
terrible
times.
So
thank
you
for
probably
all
the
sleepless
nights
that
you've
had,
if
you
didn't
already
have
the
sleepless
nights.
E
So
so,
thank
you
so
much
for
the
work
that
you're
doing
first
I
want
to
start
off
by
saying
that
I
also
wanted
to
follow
up
on
a
comment
that
council
member
Jimenez
you
made
earlier
and
I
know
it
was
in
a
comment
I
had
made
some
weeks
ago
on.
Does
it
make
sense
to
pay
off
our
debt
now
I
know
that
I
always
like
to
look
at
the
typical
family
and
what
they're
doing
at
this
point
and
and.
B
Mean
what
the
what
the
payoff
would
actually
be
so
for
the
one-time
pay
down.
We
have
to
look
at
that.
Maybe
get
that
back
later
during
the
session
here,
but
what
the
interest
savings
would
otherwise
be.
So
we
can
definitely
look
at
that
again.
This
is
one
of
the
two
strategies
that
we
have
that's
able
to
reduce
our
ongoing
cost
reduction
services,
and
so
it
was
one
of
the
reasons
why
we
want,
but
we
can
have
that
answer
a
little
bit
later
in
in
the
session.
Thank.
E
So
I
think
as
we
move
forward
and
hopefully
see
you
know,
I'm
being
very
optimistic,
but
in
the
years
to
come,
maybe
in
four
years
or
a
certain
time
period.
I
don't
know
when
we
would
normally
change
our
strategy.
Of
course
we
do
that
every
year,
as
we
are
revisiting
the
budget,
but
that
if
we
see
that
these,
that
there
is
possibly
a
net
positive
in
our
in
our
future
years,
that
our
strategy
and
paying
off
debt
changes
a
bit
so
that
we
can
have
more
funding
for
some
of
the
resources.
A
E
Barreled
in
my
kitchen,
so
I
think
you
know
that
my
basic
question
is
you
know
how,
when
will
we
change
this
strategy,
as
as
we
see
that
there's
maybe
some
surplus
in
in
the
next
four
years,
you
know,
does
it
make
more
sense
to
change
to
minimum
payments
as
as
we
get
into
the
better
standing.
B
I'll
say
that
no
one
I
think
we
want
to
try
to
align
with
the
council
policy
to
try
to
leverage
debt
savings
to
pay
on
other
other.
You
know
one
of
the
reasons.
Why
is
because
it's
it
does
protect
us
from
an
ongoing
perspective,
but
also
is
very
positive
view
from
the
rating
agency.
So
you
know,
San
Jose
is
known
as
a
very
fiscally
prudent
City,
and
so
taking
these.
B
These
steps
to
reduce
our
ongoing
obligations
helps
us
for
future
investments
that
we
might
want
to
make
for
any
of
the
future
general
obligation
bond
or
any
other
borrowing
that
would
benefit
the
direct
public.
Are
these
high
steps
here
are
really
important
to
the
rating
agencies,
which
translates
to
lower
debt
costs
in
the
future
for
future
issuances
and
the
other
thing
I'll
just
mention
is
I'm
not
I'm,
not
sure
when
we're
gonna
get
another
positive
and
be
out
here,
so
that
may
be
a
little
while
here.
B
So
if
we
have
this
potential
to
reduce
some
of
our
ongoing
amounts-
and
you
know
able
to
you-
know
kind
of
want
to
keep
in
mind
this
nineteen
point-
seven
million
dollars
negative
here-
you
know
to
the
extent
that
that
we
use
more
on
one-time
funding
to
solve
our
71
point.
Six
million
dollar
shortfall
it
kicks
the
can
down
the
road
a
little
bit,
so
we
just
want
to
be
mindful
of
that.
E
I
heard
also
that
our
that
cares
money
we
are
not
taking
that
into
account
into
anything
that,
in
terms
of
balancing
our
our
budget
here
are
part
of
our
strategy,
because
one
things
are
just
changing
and
we're
not
at
that
point
where
we're
receiving
any
reimbursements
just
yet.
So
there
is
still
an
opportunity
for
us
to
have
a
look,
maybe
some
of
this
19
million
that
we're
going
on
in
every
year
in
terms
of
a
deficit
just
slightly
change
with
with
that
correct.
B
Yeah
I
mean,
to
the
extent
that
you
know,
Kerouac
was
able
to
reimburse
them
some
of
its
cost.
That
will
again
that
will
be
helpful
or
for
sure
I.
Think.
The
other
thing
to
note,
too,
is
that
you
know
there's
nineteen
point:
seven
million
dollars
you
know
could
be
used
with.
Maybe
there
are
other
sources
that
will
be
able
to
help
reimburse
the
city
for
some
class.
It's
also
very
possible
that
this
7u
1.6
million
dollars
becomes
more
negative
so
again
we're
in
a
situation
where
we
just
don't
have
a
lot
of
good
information.
B
E
I
just
had
one
more
question
about
in
the
San
Jose
camp.
I
can't
remember
what
what
slide
that
was
on
I.
Just
I
had
a
question
about
what
that
actually
means.
Are
we
closing
it
because
of
the
obviously
you
know
we're
close
the
kovat,
but
is
it
just
for
this
upcoming
year
yeah
the
family
can
suspension
there.
Is
that
for
this
just
this
summer
coming
up,
and
is
it
because
we
need
to
reduce
staffing
or
is
it
because
of
the
potential
of
having
people
too
close
together
at
San
Jose
camp?
E
Although
from
what
I
remember
going
there,
that
most
cabins
are
pretty
pretty
stretched
far
away
from
each
other
yeah.
E
We
can
talk
about
this
a
little
bit
later.
I
just
think
that
I
don't
want
to
have
us
throw
out
the
baby
out
with
the
bathwater.
I
think
that
some
of
this
placemaking
activation
can
help
us
manage
people
in
the
outdoors,
especially
once
the
order
is
lifted
and
people
are
just
gonna
swarm
outside,
and
that
makes
me
really
nervous
and
I
think
it's
our
responsibility
to
kind
of
manage
people
on
the
outside,
just
so
that
that
we
can
continue
to
be
safe
and
continue
to
flatten
that
curve
and
I.
E
There's
protests
across
you
know
across
our
nation,
because
staying
inside
for
for
eight
weeks
is
a
little
much
for
folks
and
even
in
here
in
San,
Jose
and
I've
been
disappointed
and
some
of
our
just
splice
I
can
get
last
weekend
on
Cinco
DeMayo
I
saw
how
people
were
congregating.
Despite
you
know,
taking
that
risk
and
risking
others,
which
is
the
the
biggest
shame
here,
is
risking
other
people
as
they
congregate
and
so
I
think
it's
really
our
our
obligation
to
to
manage
that
and
so
I
know.
E
We
can
have
this
calm
a
little
bit
further,
but
I
wanted
to
know
the
the
logic
for
the
place,
making
that
an
activation
elimination
and
if
we
think
in
the
traditional
sense
of
wanting
to
have
people
congregate
in
one
place
and
I,
would
absolutely
be
supportive
of
of
eliminating
that.
But
because
things
have
changed
and
we
know
that
we
need
to
manage
people's
at
engagement
in
the
outdoors.
E
L
B
Well,
you
know,
as
part
of
our
budget
process,
we
always
are
trying
to
identify
a
few
different
revenue
components
and
we
have
some
smaller
ones
that
are
we
able
to
do
at
the
staff
level,
and
maybe
an
example.
I
didn't
highlight
was
the
merchant
card
transaction
fees
which
we
are
recommending
to
start
on.
January
1st
of
next
year
for
a
small
service
charge
when
you're
paying
a
city
bill
with
debit
or
credit
card
would
still
be
fleet
if
you're
going
to
use
e-e-e
checks.
So
those
are
some
limited
instances
there.
D
I
guess
I,
maybe
I'll
jump
in
Jim.
Sorry,
you
know
I,
guess
we'll
need
to
think
through
how
we
we
go
back
and
engage
the
council
and
that
discussion.
So
you
know
that's
where
we're
at
right
now.
Obviously,
the
proposed
budget
does
not
anticipate
anything
along
additional
revenue
measures,
but
I
do
understand
the
perspective
of
the
council
wanting
to
make
sure
that
you
all
had
the
opportunity
to
consider
things.
D
You
know
so
at
a
point
where
it's
not
too
late.
So
we
need
to
think
through
that
and
figure
out.
You
know
how
we
can
engage
you
on
that
and
making
sure
that
we're
not
usurping
your
decision-making
ability
on
what
what
could
move
forward
so
I
think
we'll
need
to
huddle
and
kind
of
loop
back
with
you
all
on
that
aspect.
Okay,.
K
Councilmember
this
is
where
guy
I
just
want
to
add
that,
specifically
with
reference
of
the
card
rooms,
you
know
we've.
We
were
engaged
in
lengthy
settlement
discussions.
For
months
we
kept
the
council
priced
and
in
closed
session,
they
just
sort
of
stopped
not
at
our,
not
in
our
instance,
but
it
was
really
the
card
rooms
just
sort
of
stopped
and
they
were
they
were
pursuing
other
issues.
K
There
has
been
some
indication
they
may
want
to
talk
so
to
the
extent
that
we
have
any
further
conversations.
That
would
be
something
we
would
be
back
in
the
context
of
settlement
discussions,
because
you
were
where
we
do
have
two
lawsuits,
one
of
the
spirit
court,
one
of
the
court
of
appeal
that
are
still
pending.
D
D
Where
are
we
getting
the
revenue
from
and
wherever
that
source
is
you
know?
How
are
they,
whether
it's
the
public
or
other
entities
impacted
you
know
through
kovat,
and
what
is
their
recovery
outlook
look
like
in
obviously
a
timing
of
all
of
that,
so
I
think
there's
a
lot
packed
in
there
and
we'll
need
to
think
that
through.
L
Thank
you
and
I
know
that
you
know
that
was
just
one
opportunity.
We've
talked
about
in
the
past
two
of
the
revenue
generating
opportunities
like
we've,
looked
at
the
expansion
of
marijuana
sales
in
our
city
and
certainly
with
gambling,
our
casinos
and
our
our
dispensaries.
Those
have
been
the
two
highest
revenue-generating.
L
L
Next
question
is
in
regards
to
a
letter.
It
was
came
in
yesterday,
I
believe
from
the
Police
Officers
Association
I,
don't
know
if
you've
had
a
chance
to
see
that
Dave
or
Jim,
but
it
talks
about
some
of
the
further
guidance
on
the
use
of
the
care
tax
dollar,
specifically
for
public
safety
purposes
and
I'm,
not
talking
about
future
dollars.
L
I'm
talking
about
the
hundred
and
seventy
eight
million
currently
have,
and
so
have
you
had
a
chance
to
take
a
look
at
that
and
I
know
obviously
already
answered
in
regards
to
you
know
any
further
clarification
we
have
when
these
dollars.
Clearly,
we're
going
to
use
them
in
the
wisest
way
possible,
but
have
you
had
a
chance
to
look
at
that
letter.
D
Only
only
only
just
I
think
we
just
I
think
looking
through
that
yesterday
you
know
I,
don't
know
if
it
at
this
point
changes
our
approach
dramatically
right
now,
but
in
the
future
it
might
I'll.
Maybe
Li,
do
you
want
to
you
want
to
kind
of
jump
in
and
I
know
you
probably
ought
to
give
it
a
little
more
thought
than
I've
been
able
to
so
far
yeah.
J
Staff
was
able
to
do
a
very
high-level
review.
We've
been
working
closely
with
the
Department
of
Treasury
and
our
own
federal
lobbyists.
On
some
of
that
clarification
as
well
that
the
guidance
outlined
in
that
memorandum
I'd
say
we.
We
don't
necessarily
disagree
with
the
Police
Officers
Association,
but
we
know
that
additional
clarification
from
Department
of
Treasury
is
coming
out
because
I
think
a
lot
of
other
cities
are
interpreting
that
language
like
we
are
that
it
needs
to
be
specific
to
the
kovin
response
and
not
kind
of
indirectly
related
costs.
L
So
how
quickly
could
we
have
a
I
guess
an
update,
we're
talking
about
right
now,
coming
back,
you
know
end
of
summer
or
fall
how
quickly
those
could
we
have.
Some
of
these
updates
I
know
we're
going
to
be
going
through
our
budget
discussions
for
the
next
several
weeks,
so
maybe
anything
that
happens
over
the
next
several
weeks.
L
D
Well,
I,
guess:
Jim
you
mean
like
what
it
would
look
like
process
wise
is.
If
we're
able
to
kind
of
come
to
soon.
You
know
conclusion
on
get
clarity
on
these
things
process
wise.
We
would
issue
an
MBA
I
suppose
that
would
kind
of
provide
that
clarity
and
even
make
recommendations
should
there
need
to
be
adjustments
or
should
we
want
to
make
adjustments
in
the
budget
process?
You
know
prior
to
adoption.
So
if
I
got
that
right,
Jim
yeah
yeah,
so.
B
If
you
know,
pending
that
analysis,
we
had
recommendation
that
would
change
that
the
proposed
budget
for
2021
we
would
bring
that
for
it
as
an
MBA
prior
to
the
end
of
the
fiscal
year.
There
may
also
be
some
budget
action
just
as
part
of
the
current
fiscal
year
as
part
of
that
process,
also
that
we
want
to
come
forward
with
again
prior
to
the
end
of
end
of
June.
A
So
we
focused
obviously
projections
on
those
30%
of
revenues
that
are,
although
obviously
I
know
you
look
at
all
the
revenues,
but
the
ones
that
you
think
are
most
impactful
in
those
30%,
the
sales
tax,
the
t,
OT
tax
and
other
revenue
measures
and
I'll.
Just
ask
you
some
general
questions
here:
Jim
to
save
you
the
time
having
to
hunt
it
all
down.
A
First,
with
regard
to
those
economically
sensitive
revenues,
sales
tax,
t,
OT
tags,
I
think
it
is
important
for
all
of
us
to
kind
of
have
our
eyes
wide
open
about
the
sensitivity
of
these
assumptions.
Our
assumption
is
a
16
percent
drop
roughly
from
fiscal
year.
1819
California,
you
believe,
if
you
adjusted
the
number
that
'innama
scientists
used
to
their
1819
numbers,
be
about
a
20
percent
drop.
Is
that
right.
B
A
B
A
A
I
know
a
lot
of
folks
have
gotten
hit
hard
this
current
year,
but
I'm
trying
to
understand
why
we
think
there
would
be
an
increase
from
the
current
year
in
the
next
year
when
I'm
guessing
the
Convention
Center
schedule
has
just
been.
You
know
somebody
hit
the
Delete
key,
probably
on
the
entire
calendar,
knowing
that
stuff
has
to
get
booked
out
a
year
to
more
than
a
year
to
in
advance.
B
You
know
the
assumption
is
that
it
will
improve
a
little
bit
better
to
how
this
current
ended,
but
still
be
about
30
percent
below
where
we
were
the
previous
year,
so
the
our
mix
is.
We
have
folks
that
are
attending
the
conventions.
Like
I
just
said,
that's
gonna
be
severely
yeah.
You
also
have
a
lot
of
business
investment
as
part
of
our
hotel
mix.
So
those
folks
who
are
on
just
regular
business
business
travel
not
necessarily
related
to
a
convention
per
se,
and
so
that's
part
of
our
thinking.
B
There
is
that
you
know
after
we
get
maybe
into
the
later
portion
of
the
fall
months
and
the
spring
that
begins
to
pick
up
more
yeah.
You
might
not
be
right,
but
that's
kind
of
the
thought
here
is
that
so
right
now
in
April,
you
know
end
of
March
through
the
end
of
June,
there's
almost
nothing
going
on.
So
it's
a
steam
in
1920
and
I.
B
Think
the
thought
is
that
it's
still
really
low
in
summer
and
just
slowly
starts
to
creep
up
so
that
by
the
end
of
the
year,
you're
a
little
bit
higher
than
where
you
were
in
1920.
But
point
taken
that
you
know
the
the
impact
of
the
conventions
is
gonna
have
play
a
significant
role,
and
so
how
much
that
that
is
able
to
sit
back
fill
see.
B
A
And
I
know
embedded
in
all.
This
is
our
assumptions
around
things.
We
can't
know
that
you're
just
making
estimates
about
which
are
reasonable
estimates
or
assumptions
about
when
an
economy
is
gonna
reopen.
You
know,
take
time,
but
just
unpack
this
a
little
bit
we're
projecting
a
27
percent
drop
in
hotel
revenue
over
the
last
from
the
number
two
years
ago.
You
know
I
know:
Airlines
bookings
are
down
close
to
90
percent
I'm.
Guessing
those
airline
executives
would
be
happy
at
the
end
of
next
year
they
had
only
a
27
percent
drop
in
airline
bookings.
A
I
just
think
you
know.
The
flights,
as
we
know
are
gonna,
be
really
a
problematic
regardless
what
happens
to
the
economy?
Just
because
it's
give
me
a
lot
of
fear
about
getting
on
planes
and
there's
gonna
be
a
lot
of
it.
A
lot
of
companies
are
gonna,
say
we're
not
going
to
take
the
liability
of
putting
our
employees
on
planes,
we're
just
not
going
to
do
it,
and
so
you
know
we're
gonna
be
stuck
with
zoom
for
a
while
and
and
and
then
obviously
the
conventions
themselves
are
going
to
be
far
more
than
a
twenty.
A
It
is
often
the
case
that
we
want
to
believe
the
very
best
about
the
numbers,
but
before
we
spend
a
lot
of
time
quill
over
a
lot
of
details
in
this
budget,
we
probably
need
to
be
kind
to
the
fact
that
these
these
numbers-
you
know
that
the
ground
underneath
us
could
be
shifting
considerably
and
I
guess.
It
brings
me
to
the
larger
question,
which
is
the
multi-year
nature
of
this.
A
Every
recession
we've
experienced
results
in
several
years
of
serious
budget
deficits.
You
alluded
to
part
of
that
Jim
I
know
you
mentioned,
for
example,
that
we've
got
lagging
indicators
around
pension
and
retiree
health
care
obligations
that
are
dependent
on
plan
returns,
which
we
know
are
going
to
be
horrible
this
year
and
we'll
have
to
account
for
those
over
the
succeeding
five
years.
A
The
big
question
for
me
is
given
the
fact
you
guys
are
wrestling
this
alligator
to
the
ground
of
the
current
over
the
coming
year,
and
we
know
that's
brutally
difficult
to
do
with
the
paucity
of
information
that
you
have
how
soon
until
we
can
come
up
with
an
estimate
around
multi-year
deficits
similar
to
the
five-year
projection,
even
if
it's
for
two
or
three
years.
So
we
can
really
understand
the
size
of
this
alligator
that
we
have
to
wrestle.
B
B
So
they
do
evaluation
on
based
on
how
things
end
on
June,
June,
30
and
and
then
they
actually
goes
through
the
process
of
freaking
out
what
that
is,
we've
we've
been,
you
know,
burned
before
about
trying
to
estimate
what
that
is
prior
to
that
coming
out.
So
we're
we're
very
careful
about
trying
to
estimate
what
retirements
can
we
gonna
do?
Is
we
just
don't
have
visibility
in
into
that,
so
that
will
probably
be
our
earliest
indication.
Maybe
you
know
in
the
November
December
time
timeframe
and
some
of
that
information
comes
out.
B
B
A
I
appreciate
that,
because
I
know
there's
a
lot
of
hope
and
I'm
I'm
as
hopeful
as
anyone
else,
whether
it's
around
you
know
loosening
restrictions
on
the
use
of
Kerr's
Act
money,
although
frankly
I
think
we're
gonna
have
such
high
bills
to
pay
in
terms
of
food
distribution,
some
other
things,
I'm,
not
sure
it's
going
to
matter,
because
I
think
we're
gonna
need
every
dollar
simply
didn't
Haven
see
service.
But
you
know.
A
For
a
heroes
Act
to
pass,
despite
the
president's
position
and
Senate
Majority
Leader's
position,
apparently
that's
D
in
a
way,
but
we
all
hope
that
these
the
stuff
is
gonna
pass.
But
this
is
a
really
one-time
money.
You
know
we're
gonna
have
a
multi-year
challenge
here
and
and
I
know,
that's
that's
what
you're
focused
on
is
how
we're
going
to
solve
that
multi-year
ongoing
problem
and-
and
that's
where
it
comes
back
to
that
chart
that
pie
graph.
You
got
to
describe
sir,
the
70%
of
revenues
that
are
not
economically
sensitive
and
I.
A
B
Yeah
we
tried
to
put
a
little
note
there.
It's
not
insensitive
in
twenty
twenty.
Twenty-One
but
yeah
that
that
pie
chart
opens
up
when
you
start
to
look
at
twenty
one.
Twenty,
eight,
twenty
two
okay
for
sure,
because
what's
I
mean
probably
taxes,
economic
incentive,
it's
just
it's
just
a
lagging
one.
So
it's
not
going
to
be
impact
us.
This
year,
like
I,
said
there
is
some
outliers
there.
We
think
about
Erath
and
unsecured,
but
the
bigger
outside
risk
is
how
the
valuation
is
for
County
or
twenty
twenty
right.
A
Okay,
so
is
we
think
about
a
city
organization
that
obviously
depends
in
North
entirely
on
people
to
deliver
services
and
those
are
people
we
need
to
make
commitments
to
they're
going
to
be
employed
year
after
year.
It
just
seems
to
me
that
you
know
as
much
as
we're
gonna
try
to
do
everything
we
can
to
find
these
one-time
dollar
sources.
A
B
Yeah,
so
we're
trying
to
take
a
conservative
approach
with
that,
so
we
only
have
one
one
one
quarter
of
actual
data
there
stood
to
make
that
estimate,
so
we
had
a
for
the
nineteen
twenty.
What
we
projected
there
was
eighteen
million
dollars
for
three
three
quarters
worth
and
so
for
the
annualization
will
account
twenty-two
million
dollars
there,
which
we
think
gives
us
room.
B
You
know
some
culinary
conversations,
look
like
things
are
doing
decently
there,
so
we
should
hopefully
be
on
the
conservative
end
of
that
one,
okay,
but
definitely
don't
want
to
get
over
our
skis
at
all,
especially
since
that
one
is
so
new
to
us.
You
don't
have
a
lot
of
good
data,
so
if
definitely
taken
a
conservative
approach
there.
Okay.
A
D
A
Highlight
one
one
other
data
point:
you
said
that
we're
gonna
have
about
sixty
five
hundred
forty
four
positions.
If
we
approve
this
budget,
as
it
is
now
some
context
there,
we
had
seventy
four
hundred
employees
twenty
years
ago
and
we
had
more
than
two
hundred
thousand
more
people
to
serve
today
than
we
had
twenty
years
ago.
A
So,
hopefully
we
are
continuing
to
be
as
forthright
as
we
can
be
with
the
public
about
the
fact
that
we've
got
fewer
employees
serving
a
lot
more
people
and
those
employees
are
working
incredibly
hard
and
they're
being
very
innovative
and
they're
being
very
resourceful
because
they
have
to
be-
and
we
have
certainly
improved
some
of
the
tools
around
software
and
so
forth
to
help
them
be
more
efficient.
But
we
also
have
to
be
realistic
about
our
expectations
about
services
and
we
can
deliver
because
of
this
reality.
So
I
appreciate
everybody,
who's
working
so
hard
right.
A
Now
those
difficult
circumstances
on
slide
number
twelve.
He
describes
sort
of
that.
The
share
that
goes
to
public
safety
and
different
other
services
and
obviously
public
safety
is
the
majority
of
our
expense
spending
here,
and
that
is
as
it
should
be.
We
we
know
that
our
residents
value
public
safety
above
all,
services
that
are
delivered,
but
I
also
want
to
unpack
this
just
a
little
bit
because,
as
I
understand
it
Jim
there's
public
safety
expenditures
happening
in
some
of
those
other
slices
like,
for
example,
non-departmental
and
general
government.
A
B
Right
so
I
think
so
some
of
that
strategic
support
you
seem,
especially
in
general
government
slice
there.
When
you
see
the
finance
and
the
HR
departments,
definitely
are
part
of
that
part
of
that
role
and
even
in
the
non-departmental
there
may
be
some
citywide
components.
For
that
say,
the
the
mayor's
gang
prevention
task
task
force
as
part
of
that,
which
also
is
you
know,
focus
on
some
public
safety
aspects
as
well
right.
A
And
capital
maintenance
may
be
on
fire
stations,
for
example
a
small
small
portion
of
that
yeah,
all
right,
okay,
so
I,
just
because
I
know
this
can
be
a
little
deceiving
about.
I
know
this
is
a
general
cut
based
on
how
the
categories
of
the
budget
are
set
up,
but
the
truth
is
we
actually
spend
quite
a
bit
more
than
half
of
our
budget
on
Public,
Safety
and
I.
A
However,
you
think
is
appropriate
if
you
could
surface
those
assumptions
as
much
as
possible
about
when
the
budget
team
is
believing
the
economy
is
going
to
reopen,
not
because
we're
going
to
rely
on
you
for
those
assumptions
or
that
we're
gonna
expect
you
to
play
public
health
officer,
but
because
we
know
those
assumptions
underlie
a
lot
of
the
projections
you're
making
about.
What's
going
to
happen
with
different
economic
indicators,
and
it
seems
to
me
as
we're
hearing
more
from
our
public
health
authorities
that
may
change
the
weather.
We
believe
those
assumptions
are
correct
or
not.
A
D
I
can
add
me,
I,
mean
I,
totally
see
the
value
of
what
you're
asking
for
there,
because
we
want
to
make
sure
that
that
those
assumptions
are
very
open
and
public
to
everyone
and
I
think
what
you're
pointing
out
and
then
you
get
something
that
we're
all
kind
of
trying
to
figure
out.
Is
you
know?
How
does
that
compare
to
the
reality
that
unfolds
ahead
of
us
and
Public
Health
orders
and
just
how
we
all
respond
and
so
yeah
we
need
to?
D
L
L
B
We
came
up
with
these
members,
but
you
know,
new
information
is
always
going
to
come
to
light,
and
every
year
we
always
are
updating
our
revenue
estimates
up
until
we
finally
produce
the
adopted
budget,
so
anything
new
that
we
learned
between
sort
of
when
we
lock
down
the
estimates
a
couple
weeks
ago
versus
what
we're
gonna
end
up
with
in
a
couple
weeks
from
from
now.
If
we
see
something's
nothing
different,
you
know
you
will
want
to
bring
that
forward,
as
as
we
always
do
thanks.
A
A
B
That
works
that
makes
sense.
Nice
pull
up
here,
the
sir
everyone's
aware.
Here's,
where
are
you
guys,
see
my
study
session
schedule?
Yep,
okay,
good,
so
this
is
just
for
other
ones,
seven
to
you
there,
so
we
have
a
little
bit
behind
here,
but
communion
economic
development
would
be
the
next
up
and
again
different
this
year
we
don't
have
any
specific
CSA
present
presentations.
A
Oh
I
see
forgive
me
I'm,
sorry,
so
there's
no
formal
presentation,
it's
just
question
section:
okay,
so
I
direct
everyone's
attention,
then
Community
Economic
Development,
which
there's
a
dashboard
I
know,
there's
been
some
changes
in
the
approach
here
which
I
appreciate
having
this.
These
dashboards
been
offered
in
modified
form
here
on
in
Roman,
numeral
six
and
then
obviously
the
more
sensitive
portions
are
embedded
within
the
department
summaries
later
in
a
the
binder,
we'll
take
questions
on
Community
Economic
Development,
which
of
course
includes
housing
along
with
many
other
services,
OCA
grants,
etc.
Councilmember
sparse
him.
I
I
F
B
F
That
would
obviously
be
a
desirable
thing,
but
the
reality
of
the
current
situation
is,
we
think
it's
best
to
retain
our
core
business
development
team,
and
the
budget
includes
some
consulting
and
non
personal
resources
that
we
can
use
to
assist
with
particular
situation.
So
we
think
we
can
you
make
that
work.
It's
obviously
critically
important
that
we
do
everything
we
can
to
support
our
our
Main
Street
type
retail
businesses
going
forward
and.
F
I
That
funding
could
be
and
I'm
asking
about
this
because,
like
in
so
many
departments
in
our
city,
we're
very
lean
when
it
comes
to
people,
and
so
are
we
so
we're
exploring
money
for
the
actual
assistance?
Do
we
have
the
capacity
to
work
with
business
is
to
provide
that
particularly
given
and
the
aftermath
I
know
we're
still
in
it,
but
particularly
in
the
aftermath
of
it.
I.
F
Think
we're
going
to
have
to
do
the
best
with
the
staff
that
we
have
I
know
that
we
are
in
the
process
of
transitioning
from
an
emergency
operation
to
a
recovery
operation
as
we
develop
the
plan
for
the
recovery
operation.
We'll
look
for
opportunities
to
continue
to
have
some
dedicated
staff
to
focus
on
recovery
of
small
businesses
and
nonprofits.
Okay,.
I
Thank
you,
I
do
think
this
is
something
that
we
should
pay
attention
to
as
a
city
as
we
review
funding
opportunities
that
might
be
made
available
to
us
I.
Think
again,
as
we're
still
in
the
crisis,
we
are
not
out
of
the
crisis.
One
of
the
concerns
that
we
have
had
from
the
beginning
is
the
impact
on
small
businesses
in
neighborhoods.
Throughout
the
cities
and
I
know,
the
mayor
of
LA
has
made
some
statements
about.
Possibly
half
of
all
the
businesses
in
LA
could
be
gone
by
the
time
kovat
is
over.
I
G
I
I
C
I
I
I
C
I
So
then,
what
are
we
doing
then,
as
a
city
to
protect
vulnerable
tenants
when
I?
Most
recently,
for
example,
we
had
Valley
palms
come
before
us
and
at
ephra
hearing,
and
we
had
to
listen
to
numerous
examples
from
both
valley
palms
and
as
well
as
some
fox
dale
residents,
bring
up
some
issues
that
they
were
dealing
with,
and
this
was
all
before
covered
since
Kovan
I
know,
my
office
has
received
a
lot
of
calls
and
concerns
about
living
conditions
around
some
things
that
some
bad
actors
are
doing.
C
So
I
think
and
I
shouldn't
really
speak
for
the
other
departments,
but
I
do
think
there
are
some
coordinated
efforts
there
are.
There
are
programs
where
the
city
is
targeting
particular
neighborhoods
to
look
at
how
we
can
address
both
crime
and
living
conditions,
and
certainly
you
know,
through
the
neighborhood
CSA,
which
you'll
be
hearing
I.
Think
tomorrow
afternoon.
I
And
you
know
I'm
aware
project
hope,
I
have
a
project
Hope
site
in
my
district
and
I
have
some
other
gang
hotspots
in
my
district
that
do
not
have
not
made
this
year's
list
for
Project
Hope,
and
so
that's
not
just
violence
prevention.
There
are
a
lot
of
issues
with
housing
and
again,
I
know
that
having
a
place-based
approach
is
part,
it's
one
of
our
strategies.
I
C
Again,
I
think
that's
something
that
the
neighborhood
CSA
is
the
area
where
we
would
try
to
Jeff
address.
These
community
plays
based
solutions,
and
it
is
something
that
certainly
we
could
be
doing
better
on,
and
it
does
require
this
coordination
across
all
the
department,
and
it
has
been
a
priority
to
begin
to
refocus
our
work
on
these
place-based
initiatives
that
all
the
departments
work
for
at
one
point
leading
somewhat
separately,
but
we're
trying
to
all
move
into
into
the
same
direction.
So.
I
C
C
So
we
don't
really
have
the
staff
capacity
to
be
proactive
in
the
way
that
it
sounds
like
you
would
like
us
to
be
we're.
We
are
typically
reactive
at
this
point
where
we
are
complaint
based,
we
hear
about
something
and
then
we
can
move
towards
it,
but
it
because
of
staffing
levels.
It
makes
it
very
challenging
to
be
more
proactive.
C
The
initiative
that
you
were
discussing
earlier
and
the
gang
prevention
task
force
initiative
tend
to
be
more
proactive
initiatives,
but
I
think
both
on
the
code
enforcement
side
and
the
housing
side,
we
do
tend
to
be
more
reactive,
which
is
why
trying
to
get
us
more
engaged
in
these
other
proactive
initiatives.
I
think
would
be
helpful
to
us
to
better
use
all
of
our
resources
to
address
these
particular
challenges
in
neighborhoods,
okay,.
I
C
This
is
a
position,
that's
an
assistant
to
me
so
I'm,
eliminating
a
analysts
position
that
currently
provides
my
support
and
instead
I'm
creating
an
assistant
to
the
director
who
would
not
only
just
prepare
communications
but
is
really
helping
to
organize
the
department
regarding
our
memos
I
think.
Sometimes,
we've
produced
60
to
80
different
memos
a
year
and
it's
ensuring
that
our
memo
preparation
is
on
track
that
we're
coordinating
with
the
City
Council
offices
that
were
getting
our
presentations
to
the
council
in
a
timely
fashion.
I
I
That
shows
exactly
where
some
of
these
covin
crises,
the
Kovic
cases,
are
and
they're
in
generally
overcrowded
living
conditions.
So
I'll
give
you
some
examples:
seven
trees
and
round
table
in
nine
five
one
one
one
Rock
Springs
and
nine
five
one
one
two
not
to
mention
nine
five,
one,
one:
six
and
nine
five,
one,
two
seven
that
have
the
largest
number
of
Kovac
cases,
but
also,
if
you
overlay,
census
overcrowding
maps.
I
A
G
E
Right
so
Rachel
van
der
Veen
from
housing.
So
this
number,
what
it
is,
is
it's
showing
the
number
of
units
that
we
expect
to
be
completed
and
we
determine
like
completion
by
the
number
of
you
that
are
issued
an
occupancy.
E
Were
also
villas
on
the
park,
so
we
had
specific
projects
that
were
under
way
for
a
number
of
years
that
actually
completed
and
got
their
certificate
of
occupancy
in
this
most
recent
year,
and
so
what
next
year's
number
is
is
an
estimate
of
which
projects
we
expect
to
be
completed
next
year.
So
what
it
doesn't
really
show.
E
G
So
how
many
projects
does
that
2021
target
encompass
and
what
are
those
projects?
Because
it's
less
than
300
units
and
I
I
can
think
of
you
know:
I
have
one
on
Park
Avenue
that
probably
doesn't
have
their
certificate
of
occupancy
yet
but
they're
very
close
mm-hmm
I've
got
another
one
on
Southwest
expressway,
but
I'm
hoping
they
will
finish
in
the
next
fiscal
year.
G
E
I
I
I
C
Actually,
another
development,
north
San
Pedro,
is
going
to
San
Pedro
completed.
My
guess
is:
did
reticent
place
that
got
completed,
they
got
their
certificate
this
year
they
did,
and
that
was
a
hundred
and
sixty
and
the
next
yeah.
So
the
primary
developments
are
just
finishing
up
for
the
first
two
years
and
then
we
have
a
next
whole
round
about
eight
hundred
and
fifty-six
that
are
still
in
some
form
of
pre
development
and
moving
forward
now
and
so.