[1) CALL TO ORDER]
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PLEDGE OF ALLEGIANCE BY COUNCILPERSON EVANS. LADIES AND GENTLEMEN, STAND IF YOU WISH AND COUNCILPERSON LITTLE, PLEASE LEAD US IN PRAYER.
ATTENDANCE, PLEASE. >> MR. GARRETT? MR. RICHMOND.
>> HERE. >> MR. LITTLE. >> HERE.
>> MR. REDD. >> HERE. >> MR. KNIGHT.
>> HERE. >> MS. SMITH? MR. TRAVIS HOLLEMAN?
>> HERE. >> MS. ALLEN. >> HERE.
>> MS. REYNOLDS. >> HERE. >> MS. STACEY STREETMAN.
>> HERE. >> MRS. EVANS. >> YEAR IN MS. BUTTSS.
>> HERE. >> GARRETT? COUNCILPERSON SMITH?
[5) APPROVAL OF ELECTRONIC MEETING]
NO RESPONSE. >> THANK YOU. “IN ORDER TO COMPLY WITH THE GOVERNOR'S EXECUTIVE ORDER REGARDING HOLDING OPEN MEETINGS IN A FORUM OTHER THAN IN THE OPEN AND IN PUBLIC, THIS GOVERNING BODY DETERMINES THAT MEETING ELECTRONICALLY IS NECESSARY TO PROTECT THE HEALTH, SAFETY, AND WELFARE OF ITS CITIZENS DUE TO THE COVID-19 OUTBREAK.” .
>> MOTION AND SECOND. >> SECOND. >> THANK YOU FOR THE MOTION AND THE SECOND. ANY QUESTIONS REGARDING THAT MOTION? HEARING NONE, SEEING NONE, ARE YOU READY TO [VOTE]
MADAM CLERK, TAKE THE [VOTE] >> 11 YES.
[6) OVERVIEW OF FY21 BUDGET AND BUDGET PROCESS]
>> MOTION IS ADOPTED. THANK YOU, LADIES AND GENTLEMEN. THE ONLY ITEM ON THE AGENDA IS AN OVERVIEW OF THE FISCAL YEAR 2021 AND THE BUDGET PROCESS, IMPORTANT WE UNDERSTAND THAT SINCE WE'RE ON THE CUSP OF STARTING A NEW BUDGET DELIBERATION.
WE'LL BRING YOU BACK TOGETHER FOR THE TRANSPORTATION PLAN THAT EVERYBODY HAS BEEN EAGERLY AWAITING AS WELL AS A LEGAL REVIEW, TWO SEPARATE MEETINGS HAPPENING THE WEEK AFTER NEXT.
SO TO LET YOU KNOW WHAT IS COMING. LAWYER RAY MATTA, THE CHIEF FINANCIAL PERFECT FOR THE CITY OF CLARKSVILLE HAS PREPARED A PRESENTATION TO LEAD US THROUGH THE BUDGET PROCESS AND WHAT'S INSIDE THE BUDGET IN TERMS OF HOW WE COMPOSE THE BUDGET AND THEN SHE'LL BE OPEN TO QUESTIONS I'M SURE AFTER THAT. SO MS. MATTA, YOU HAVE THE FLOOR. YOU ARE RECOGNIZED IF YOU'LL TURN ON YOUR MICROPHONE.
THE OTHER BUTTON. THERE YOU GO. >> YES.
THANK YOU VERY MUCH, MAYOR. COUNCIL, I'M LAURIE MATTA, THE CHIEF FINANCIAL PERFECT FOR THE CITY. MY DOOR IS ALWAYS OPEN AND COME IN ANY TIME TO ASK QUESTIONS.
I'D LOVE TO TALK ABOUT FINANCES. I'M WORKING REMOTELY SO CALL ME OR EMAIL FIRST AND AT THE END OF THIS YOU'LL HAVE MY CONTRACT DIRECT LINES TO CONTACT ME. SO WITH THAT, IF I CAN REMEMBER TO CLICK THE BUTTON, THERE WE GO, I HATE SLIDES THAT HAVE A LOTTEN IT BUT THERE'S A LOT TO TELL YOU. SO WHY AM I A CHIEF FINANCE HELP OFFICER? I'M RESPONSIBLE FOR THE ENTIRE CITY, ALL OF THE FUNDS REGARDLESS OF WHAT THEY COME FROM. THERE'S ONE ACCOUNTABLE PERSON AND THAT'S ME.
BY STATE LAW I'M REQUIRED TO BE A CERTIFIED MUNICIPAL FINANCE OFFICER WHICH REQUIRES ME TO HAVE CONTINUING EDUCATION EVERY YEAR. I HAVE OVERIT TO RESPONSIBILITY OF ALL THE FUNDS LIKE I SAID, INCLUDING INTERNAL CONTROLS. THOSE ACTUALLY ROLL UPHILL SO
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THOSE CHARGED WITH GOVERNMENTS ARE THE ONES WHO ARE RESPONSIBLE FOR INTERNAL CONTROLS BUT WE START WITH THE DEPARTMENT HEADS AND ME AND THE MAYOR AND THEN ULTIMATELY IT WILL BE YOU.I HAVE A RESPONSIBILITY TO ACT FOR THE BENEFIT OF THE CITIZENS AND THE CITY.
I HAVE OVERCITE OF SITE BY THE MAYOR, COUNCIL AND THE STATE COMP TROLLER'S OFFICE.
I KNOW THE CITY ATTORNEY SPOKE ABOUT THE CODE OF ETHICS AND COMPUTER CONFLICTS OF INTEREST.
THERE'S A FORM REQUIRED TO BE FILLED OUT SHOULD ANY ARISE FOR YOU.
I HAVE THEM AT EVERY MEETING WITH ME SO IF SOMETHING COMES UP, ASK AND YOU CAN FILL OUT THE FORM. JUST A LITTLE SNAPSHOT OF THE FINANCIAL STRUCTURE OF THE CITY.
I TYPICALLY SAY EVERYTHING BEGINS OR ENDS IN MY DEPARTMENT. THE REVENUES COME IN ON THE FIRST FLOOR AND THAT INCLUDES PARKING AND THEN ON THE THIRD FLOOR IS WHERE THE REST OF MY ACCOUNTING STAFF ARE WHERE WE HANDLE DEBT MANAGEMENT, TREASURY MANAGEMENT, FINANCIAL REPORTING, ACCOUNTS PAYABLE, PAYROLL, ALL OF THOSE THINGS. THE OTHER FUNDS THAT YOU'LL SEE ON THE RIGHT WITH THE ENTERPRISE FUNDS THEY ALL HAVE FINANCE DIRECTORS AND I HAVE A FINANCE DIRECTOR TOO FOR THE GENERAL FUND AND BUT WE ALL WORK WELL STOWING AND I HAVE OVERSIGHT AND RESPONSIBILITY FOR THEM. BUT WE REALLY WORK GREAT AS A WONDERFUL TEAM.
>> BEFORE YOU MOVE ON YOU MAY WANT TO INTRODUCE KRISTIN. >> YES.
MY NEW FINANCE DIRECTOR STARTED WITH US NOVEMBER 9. KRISTIN WILCOX.
SHE MOVED HERE FROM ARIZONA TO COME TO CLARKSVILLE. SO WE ARE THANKFUL SHE'S HERE.
I CAME HERE [INAUDIBLE] A COUPLE OF YEARS NOW. >> WE DON'T WANT IT EITHER.
BEFORE WE GET INTO THE DETAILS OF THE BUDGET I THINK IT'S IMPORTANT TO GIVE YOU A LITTLE OVERVIEW OF WHAT THINGS ARE EIGHT WHAT ACCOUNTING BECAUSE THE TERMS ARE A BIT DIFFERENT THAN YOU NORMALLY WOULD HEAR IN A BUSINESS. SO WHY DO WE ADOPT A BUDGET? WE ARE REQUIRED BY LAW TO ADOPT A BUBBLING AND IT'S AN APPROPRIATIONS BUDGET, SO APPROPRIATIONS GIVE US THE LEGAL AUTHORITY TO SPEND THE MONEY AND THE BUDGET TELLS US HOW WE PLAN ON SPENDING IT. SO BUDGETS ARE ONLY FOR ONE FISCAL YEAR, AND THEY RUN FROM JULY 1 TO JUNE 30. ALL AUTHORITY TO SPEND FUNDS EXPIRES ON JUNE 30.
BEFORE I GET REALLY INTO THE DETAILS, A BIT ABOUT OUR REVENUES AND EXPENDITURES.
SO HERE WE ACCOUNT FOR THE PROJECTED REVENUES AND EXPENSES IN INDIVIDUAL FUNDS.
FUNDS PROVIDE US WITH MORE ACCOUNTABILITY AND HOW THE REVENUES ARE USED AND FUNDS ARE NOT A SEPARATE ENTITY. THEY ARE REALLY JUST AN ACCOUNTING TOOL THAT WE USE TO ACCOUNT FOR OUR MONEY. THE CITY HAS 29 SEPARATE FUNDS, AND SOME WERE REQUIRED BY STATE LAW AND SOME ARE DEFINED GUY THE GOVERNMENTAL ACCOUNTING STANDARD BOARDS WITH OVERSIGHT AND WE HAVE 19 GOVERNMENTAL FUNDS, TEN ENTERPRISE FUNDS, FIVE OF WHICH ARE MAJOR SO THE FIVE MAJORS ONES WE HAVE ARE ELECTRIC, BROADBAND, GAS, WATERS AND WASTEWATER AND WE HAVE TWO SMALL ENTERPRISE FUNDS WHICH ARE TRANSIT AND PARKING. THEN WE HAVE THREE INTERNAL SERVICE FUNDS. I'LL EXPLAIN THOSE IN A MINUTE. SO THE TWO PRIMARY CATEGORIES OF FUNDS THAT WE HAVE ARE THE GOVERNMENTAL FUNDS AND THE PROCEDURE PROPRIETARY FUNDS.
THEY ARE USED FOR OPERATIONS THAT RUN LIKE A BUSINESS. GOVERNMENTAL FUNDS ARE USED FOR ALL OTHER TYPES OF GOLFAL ACTIVITIES MOST COMMONLY DISCUSSED THE GENERAL FUNDS AND THIS IS WHERE ALL THE BASIC INFORMATIONS OF THE GENERAL GOVERNMENT ACCOUNTED FOR LIKE PUBLIC SAFETY, STREETS AND PARKS, ET CETERA. THE GENERAL FUND IS THE MAIN OPERATING ACCOUNT AND THE MAIN SOURCE OF FUNDS FOR THE GENERAL FUND IS VARIOUS TYPES OF TAXES, FEES AND PERMITS AND THE DEBT SERVICE FUND ACCOUNTS FOR OUR ANNUAL PRINCIPAL AND INTEREST PAYMENTS AND THE MAIN SOURCE OF REVENUE THERE IS IT COMES FROM THE GENERAL FUND SO IT'S MOSTLY TAXES AND WE ISSUE TWO DIFFERENT TYPES OF DEBT. WE ISSUE GO BONDS WHICH ARE GENERAL OBLIGATION BONDS AND WE ISSUE REVENUE BONDS. THE GENERAL GOVERNMENT ISSUE GO BONDS BECAUSE THEY ARE GUARANTEED BY THE FULL FAITH AND CREDIT OF THE CITY THAT YOU RAISE THE TAXES TO PAY BACK THAT DEBT. THE REVENUE BONDS IS WHAT CONTINUEDLY ARE ENTERPRISE FUNDS ISSUED AND THEY ARE GUARANTEED BY THE REVENUE STREAMS OF THE
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SERVICE THEY ARE PROVIDING. WHEN WE ISSUE DEBT WE DO IT FOR OUR MAJOR CAPITAL PROJECTS BECAUSE WE PRACTICE GENERALLY GENERATIONAL EQUITY WHICH IS THE PEOPLE THAT ARE USING THE ASSET ARE THE ONES PAYING FOR THE ASSET AND INSTEAD OF THE PEOPLE TODAY PAYING TO STOCK UP MONEY AND THEN PAY FOR AN ASSET THAT WILL CREATE TEN YEARS DOWN THE ROAD.SO OUR CAPITAL PROJECTS, THE MAJORITY OF THEM ARE PAID FOR WITH DEBT.
THEY ARE MULTIYEAR FUNDS AND I'LL EXPLAIN MORE ABOUT OUR CAPITAL PROJECTS LATER AS WELL.
THESE PROJECTS USUALLY TAKE SEVERAL YEARS TO COMPLETE SO THE FUNDS DON'T GO AWAY.
ONLY COUNCIL CAN CREATE A CAPITAL PROJECT AND ONLY COUNCIL CAN CHANGE THE FUNDS IN A CAPITAL PROJECT. THEN THERE'S SPECIAL REVENUE FUNDS AND THIS IS A WAY FOR US TO RESTRICT OUR FUNDS, SO A LOT OF TIMES WE USE THEM FOR DIFFERENT GRANTS BECAUSE TYPICALLY THE GRANTS RESTRICT WHAT THEY WANT US TO SPEND THE FUNDS ON SO IT'S A BETTER WAY TO ACCOUNT FOR THEM. THE REQUIREMENT WITH A SPECIAL REVENUE FUND HAS SPECIFIC SOURCE AND A SPECIFIC USE. THAT WAS HARD TO SAY. SO PROPRIETARY FUNDS, LIKE THE BIG ENTERPRISE FUNDS, CD HAS THE TWO, GAS AND WATER HAS THREE, AND WITH THE ENTERPRISE FUNDS AND THE GOVERNMENTAL FUNDS THEY CAN'T BENEFIT FROM ONE ANOTHER. THERE IS LAWS IN PLACE THAT SAY WE CAN'T TAKE NOBODIES FROM THE UTILITIES AND THE UTILITIES CAN'T TAKE MONEY FROM THE GENERAL GOVERNMENT. IN MIGHT SOUNDER ODD BUT WE AS A GENERAL GOVERNMENT HAVE TO PAY OUR OWN UTILITY FOR UTILITY COSTS SO WE CAN WORK TOGETHER. WE JUST CAN'T DO IT FOR FREE.
IF WE PROVIDE A SERVICE TO ONE OF THE UTILITIES THEY HAVE TO PAY US AND IF THEY PROVIDE A SERVICE TO US WE HAVE TO PAY THEM. THE INTERNAL SERVICE FUNDS WORK LIKE A BUSINESS AS WELL. BUT THE ONLY CUSTOMER OF THE INTERNAL SERVICE FUND IS THE GOVERNMENT ITSELF SO THIS IS WHERE WE HAVE THREE DIFFERENT INTERNAL SERVICE FUNDS.
WE HAVE THE HEALTH SERVICE PLAN WHICH IS OURSELF INSURANCE FOR HEALTH FOR ALL OF OUR EMPLOYEES, DENTAL, SAME THING, SELF INSURANCE FOR ALL OF OUR EMPLOYEES AND THEN THE SELF INSURANCE FUND FOR ON-THE-JOB INJURY WHICH IS LIKE A WORKERS' COMP, GENERALLIABILITY AND AUTO.
ALL OF THE CITY'S DEPARTMENTS PAY INTO THOSE FUNDS WITH THE EXCEPTION OF CDE.
THEY HAVE PRIVATE INSURANCE SO THEY'RE NOT PART OF OURSELF INSURANCER FUND.
I THINK THIS IS THE EASIEST WAY TO THINK ABOUT THE FUNDS. THERE'S A BUNCH OF DIFFERENT BUCKETS OF WHERE THE MONEY GOES. SO IF YOU THINK OF BUCKETS, THE MONEY HAS TO STAY IN THERE AND IT CAN ONLY BE USED FOR THOSE THINGS. SO SOME OF OUR REVENUES COME FROM FOR ALL OF THESE DIFFERENT FUNDS THE MONEY COLLECTED FOR THE SERVICES LIKE AN ENTERPRISE FUND CAN ONLY BE USED FOR THOSE SERVICES. THAT'S WHERE THEY CAN'T GIVE IT TO US. A LOT OF PEOPLE MAKE COMMENTS LIKE AT TIS TIME OUR GENERAL GOVERNMENT BILLS GO UP AND TAXES GO UP BECAUSE OF CHRISTMAS LIGHTS, AND THAT'S NOT HOW THAT HAPPENS. IT'S BECAUSE IT'S COLDER IN THE WINNER OF THE GOVERNMENTAL FUNDS, THE MAIN SOURCE OF REVENUE THERE IS PROPERTY TAXES, SALES AND USE TAXES, FRANCHISE FEES, LICENSE PERMITS, FEES AND CHARGES FOR LIKE THE GOLF COURSES AND OUR PARKS AND GRANTS. THIS ONE I THOUGHT WAS REALLY INTERESTING.
I GET ASKED A LOT WHY IS OUR SALES TAX SO HIGH. SO I THOUGHT IT WAS -- THIS PICTURE KIND OF SHOWED A THOUSAND WORDS. OUR SALES TAX IS 9.5 PERCENT IN CLARKSVILLE. 7 PERCENT GOES DIRECTLY TO THE STATE.
1.85 PERCENT OF THAT GOES TO THE SCHOOL SYSTEM, AND JUST A LITTLE BIT OVER HALF OF A PERCENT ACTUALLY GOES TO THE GENERAL FUNDS. THERE'S A .06 PERCENT IN THERE THAT GOES TO A RESTRICTIVE ROAD IMPROVEMENT FUND WE HAVE THAT'S NOT ON THE GRAPH BECAUSE IT WAS SO SMALL IT DIDN'T SHOW UP. SO BY STATE LAW LOCAL OPTIONS SALES TAX, THE 2.5 PERCENT THAT WE HAD TO PASS AS THE CITY AND COUNTY, AND BY STATE LAW 50 PERCENT OF THAT IS REQUIRED TO BE PROVIDED TO THE SCHOOLS SYSTEM FOR I HAD CASE. THE CITY OF CLARKSVILLE SINCE THE EARLY 1960S APPROVED DIFFERENT PIECES OF THAT LOCAL OPTION SALES TAX AND EACH ONE OF THEM HAD DIFFERENT REQUIREMENTS TO HOW MUCH GOES TO THE SCHOOL SO ULTIMATELY IN THE END ON AVERAGE 75 PERCENT OF ALL THE LOCAL OPTION SALES TAX THAT'S COLLECTED WITHINS THE CITY LIMITS GOES DIRECTLY TO THE SCHOOL SYSTEM. SO HERE'S JUST KIND OF A PICTURE
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OF WHERE ALL THE KNOWN GOES. WE ARE MAJOR CORPORATION. WE ARE OVER A HALF A BILLION DOLLAR CORPORATION. AND THE MAJORITY OF THE FUNDS YOU CAN SEE THE BIGGEST PART, THE ORANGE, THOSE ARE THE ENTERPRISE FUNDS BECAUSE IT'S COSTLY TO PROVIDE THOSE SERVICES. THE LITTLE PARTS ON TOP, THOSE ARE REGULAR GOVERNMENTAL FUNDS AND WE'LL GET MORE INTO GOVERNMENTAL WHEN WE GO OVER THE DETAILS OF THE BUDGET.SO WE HAVE A COUPLE OF DIFFERENT KINDS OF EXPENDITURES. TECHNICALLY THE TERM EXPENDITURES IS FOR GOVERNMENTAL FUNDS EX. EXPENSES ARE FOR BUSINESS ENTITIES, ENTERPRISE FUNDS. THEY ARE INTERCHANGEABLE, MEAN THE SAME THING, SO THINK OF IT THAT WAY IF I GO BACK AND FORTH BETWEEN THE TWO. BUT WE HAVE RECURRING EXPENDITURES. THOSE ARE LIKE THE SALARIES AND THE BENEFITS AND THEN WE HAVE ONE-TIME EXPENDITURES SO CAPITAL AND CAPITAL OUTLAY AND SO CAPITAL ARE THOSE MULTIYEAR PROJECTS THAT ARE GOING TO MAKE AN ASSET IN THE END. THE CA CAPITAL OUTLAY IS A LITTLE DIFFERENT. THOSE ARE THINGS LIKE WE BUY A LOT OF VEHICLES FOR THE POLICE DEPARTMENT BUT WE WOULDN'T WANT TO ISSUE 20 YEARS WORTH OF DEBT TO PAY FOR THE VEHICLES OR THE STREET DEPARTMENT NEEDS NEW STREET SWEEPERS. AGAIN, THAT'S SOMETHING THAT WE BUY OCCASIONALLY BUT DO YOU REALLY WANT TO FINANCE IT FOR 20 YEARS? THEY ARE ONE-TIME PURCHASES, NONRECURRING, POLICE CARS ARE OCCURRING BUT TYPICALLY NONRECURRING BUT THEY ARE A PRETTY LARGE COST. FUND BALANCE IS SOMETHING YOU'LL HEAR A LOT ABOUT EIGHT THAT'S USUAL MR. I A HOT TOPIC WHEN IT COMES TO THE GENERAL FUND.
WHAT IS THAT? IT'S THE DIFFERENCE BETWEEN THE ASSETS AND THE LIABILITIES.
WHAT WE HAVE AND WHAT WE OWE. SOME PEOPLE, FUND BALANCE, THEY CALL THIS THE RAINY DAY FUND.
IT'S REALLY OUR FUND BALANCE -- WE HAVE POLICIES ON IT BY STATE LAW AND WE'RE REQUIRED TO HAVE A POLICY. OUR POLICY SAYS FOR THE GENERAL FURNISHED WE'LL HAVE 20 PERCENT, THE ENDS OF THE FISCAL YEAR, WE'LL HAVE A MINIMUM OF 20 PERCENT OF THE CURRENT OPERATING AND EXPENDITURES, ALL EXPENDITURES OF THE GENERAL FUND.
IT'S A DELICATE BALANCINGS ACT TO MAKE SURE WE DON'T HAVE TOO MUCH OR TOO LITTLE BECAUSE IF WE HAVE TOO MUCH THEN WHAT DO WE DO WITH THE EXTRA MONEY. IF WE HAVE TOO LITTLE WE HAVE TO COME UP WITH A PLAN TO REFLECT ANYBODY THEM. IT'S A BALANCING ACT.
THIS-20 PERCENT BALANCE HAS BEEN TRIED AND TESTED THROUGH KNOWLEDGE EMERGENCIES.
. WE'VE BEEN THROUGH THE TORNADOES AND ICE STORMS AND THE FLOOD OF '10 AND NOW THE PANDEMIC AND THE BALANCE HAS SERVED US WELL ALL ALONG.
WE'VE NEVER HAD ANY DIFFICULTIES WITH CASH FLOW AS LONG AS WE KEEP THAT FUND BALANCE THERE.
NOW, ON TO THE BUDGET PROCESS. SO FIRST THE CITY'S CHARTER TASKS THE MAYOR WITH CREATING A BUDGET BECAUSE HE'S THE CEO OF OUR CITY. SO HE CREATES IT AND THEN PROVIDES IT TO THE CITY COUNCIL FOR YOUR CONSIDERATION. TYPICALLY WE START IN FEBRUARY OR MARCH WITH OUR FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM. THE DEPARTMENT'S REQUEST FOR A TYPE OF MAJOR ASSETS THAT THEY THINK THEY'RE GOING TO NEED IN THE NEXT FIVE YEARS.
IT COULD BE THE ROADS. NEW FACILITIES OR UPGRADING EXISTING FACILITIES.
IN MARCH THE DEPARTMENTS BEGIN ENTERING THE BUDGETS INTO THE SOFTWARE SYSTEM AND DURING APRIL AND MAY THE DEPARTMENTS ARE WORKING WITH THE MAYOR AND I AND WE'RE TRYING TO FIGURE OUT HOW TO BALANCE THIS BUDGET. HOW DO WE GET THEM WHAT THEY NEED AND STAY WITHIN OUR MEANS.
MAY AND JUNE, WE HAVE WORKSHOPS WITH THE COUNCIL, THE STANDING COMMITTEES SO THE DEPARTMENTS PRESENT THEIR BUDGETS TO THE STANDING COMMITTEE THATTHY REPORT TO SO THAT THEY HAVE THAT OPEN FLOOR TO ANSWER QUESTIONS FOR ANYTHING THAT YOU HAVE. ONCE WE GET THROUGH THAT PROCESS THEN IT TAKES A PUBLIC HEARING AND TWO READINGS TO PASS THE BUDGET ORDINANCE BEFORE JUNE 30.
AS SOON AS WE COME UP WITH A TIMETABLE THAT I WORK ON WITH THE ANYWHERE THEN WE'LL SEND THAT TO ALL OF YOU SO YOU HAVE THAT FOR YOUR PLANNING PURPOSES, SO YOU'LL DATES THAT WE NEED YOU. OBVIOUSLY I THINK THE BUDGET IS THE MOST IMPORTANT THING THAT WE DO. BUT IT'S NOT JUST BECAUSE OF ME. IF WE DON'T PASS THE BUDGET THE CITY CAN'T OPERATE SO IT TRULY IS VERY IMPORTANT. THERE'S ACTUALLY SAFEGUARDS IN PLACE THAT WILL IF COUNCIL DOESN'T APPROVE A BUDGET BY JUNE 30 THEN BASICALLY ALL
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CAPITAL SPENDING STOPS. ANYTHING OVER $5,000 STOPS. SO IT REALLY IS CRITICAL THAT WE PASS THE BUDGET EACH YEAR. SO WHAT HAPPENS ONCE THE MARY HIS BUDGET TO YOU? SO PRIOR TO YOU COMING TO YOUR COMMITTEE MEETINGS I'LL PROVIDE A BUDGET BOOK AND ELECTRONIC KELL OR ON PAPER. IT'S LARGE. A LOT OF PEOPLE PREFER A BOOK.IT'S ABOUT A THREE-INCH BINDER. I'LL REACH OUT TO YOU AT THE TIME AND YOU CAN TELL ME WHAT YOU PREFER THEM. THAT WILL PROVIDE YOU WITH ALL THE SUMMARIES AND DETAILS OF EVERY DEPARTMENT AND EVERY FUND THAT YOU'RE GOING TO BE APPROVING.
ONCE THE MARY HIS BUDGET FOR THE PUBLIC HEARING THEN IT COMES TO THE COUNCIL FLOOR.
AND ANY COUNCIL MEMBER CAN AMENDS THE BUDGET BY PRESENTING AN AMENDMENT AND IT'S GOT TO BE IN WRITING AT THE MEETING AND IT TAKES A SIMPLE MAJORITY OF THE COUNCIL TO APPROVE A BUDGET AMENDMENT. NOW, I'M GIVING YOU DETAILS ON OUR BUDGET BUT TECHNICALLY WHAT YOU ARE PROVIDING IS YOU ARE PROVIDING A LUMP SUM BY DEPARTMENT SO THAT'S WHERE THE DEPARTMENTS CANNOT EXCEED THAT AMOUNT BUT ONCE THE BUDGET IS APPROVED THE DEPARTMENTS HAVE THE FLEXIBILITY TO SPEND THE FUNDS AS THEY NEED TO MANAGE THEIR DEPARTMENT OFS. THE LINE ITEM IS THE PLAN WE THINK WE'LL DO BUT THINGS CHANGE AND THEY MAY HAVE TO REYOU ARRANGE THINGS A LITTLE BIT AND THEY HAVE THE AUTHORITY TO DO THAT. OUR CITY CODE GIVES THEM THAT AUTHORITY. AND NO DEPARTMENT BUDGET CAN BE INCREASED WITHOUT COUNCIL APPROVAL. SO PROPERTY TAX RATES. SO CONTRARY TO WHAT PEOPLE THINK IT'S NOT THE FIRST GO-TO THING GO ME. IT'S NOT FOR THE MAYOR AND IT HASN'T BEEN FOR ANYBODY THAT I HAVE WORKED FOR. WE ACTUALLY LOOK AT THAT LAST SO TYPICALLY I PROJECT REVENUES FOR THE GENERAL GOVERNMENT BASED ON HISTORICAL TRENDS AND WE LOOK AT EVERY ONE OF THEM.
WE GO BACK AND LOOK FOR ANOMALIES AND FRIENDS THAT ARE GOING ON IN THE DID ECONOMY, WHAT IS GOING TO IMPACT US IN THE COMING HERE AND WE MAKE ALL THOSE PROJECTIONS FIRST.
AND THEN WE LOOK AT THE TAX RATE. IF WE KNOW THERE'S RECURRING GROWTH COMING ARE WE GOING TO NEED TO BE ABLE TO PROVIDE FOR THAT.
NOW, I NEED TO GIVE YOU A LITTLE BIT OF HISTORY ON THE CURRENT TAX RATE.
EVERY FIVE YEARS THE ASSESSOR IS REQUIRED TO DO A REAPPRAISAL OF THE ENTIRE COUNTY.
AND WHEN HE DOES THAT THEY PROVIDE US WHAT IS CALLED A CERTIFIED FAX RATE AND THE CERTIFIED TAX RATE IS TECHNICALLY SUPPOSED TO PROVIDE US WITH EXACTLY THE SAME AMOUNT OF REVENUE, TAX REVENUE WE GOT THE YEAR BEFORE. BUT WE HAVE DISCOVERED A FLAW IN THE CALCULATION AND WE'RE TRYING TO FIGURE OUT HOW TO GET THAT FIXED.
I'M WORKING WITH HER ON THAT AND SHE AGREED. THEY DON'T ACCOUNT FOR PEOPLE WHO MIGHT APPEAL THEIR NEW ASSESSMENT. SO YOU COULD HAVE SOMEBODY THAT THEIR ASSESSMENT WENT UP SIGNIFICANTLY AND THEY APPEAL IT AND THE TAX REVENUE GOES DOWN.
IN THE YEAR OF REEWE APPRAISAL, TWO YEARS AGO NOW, WE LOST OVER $1 MILLION IN PROPERTY TAX REVENUE FOR THE REAPPRAISAL. TON TOP OF THAT MILLION THAT WE DIDN'T GET THAT WE GOT THE YEAR BEFORE WE LOST ABOUT ONE HALF MILLION DOLLARS OF GROWTH THAT WE SHOULD HAVE RECEIVED FROM THE NEW CONSTRUCTION. WE HAVE GOTTEN NONE OF IT. OUR CURRENT TAX RATE IS 1.0296.
I'VE SAID IT BEFORE AND I'LL KEEP SAYING IT, IT IS NOT A SUSTAINABLE RATE.
WE CAN'T SURVIVE THIS CITY ON THAT RATE. IT IS EXTREMELY LOW AND THE AMOUNT OF GROWTH THAT WE HAVE, IT'S NOT GOING TO SERVE US. WEANER GOING TO HAVE TO DO SOMETHING TO FIX THAT TAX RATE BECAUSE IT'S WAY TOO LOW. THE ONLY THING CURRENTLY THAT THE ASSESSOR AND THE STATE HAS RECOMMENDED IS EVERY TIME WE HAVE A REAPPRAISAL THEY WANT US TO RAISE THE TAX RATE INSTEAD OF CERTIFIED TAX RATE WHICH SOUNDS EASY.
IF YOU ARE GOING FOR 1.24 AND THEY RECOMMEND 1.02, WHY NOT STICK WITH 1.24 OR GO TO 1.03.
YOU CAN'T DO THAT. THAT'S CONSIDERED TAX RATE INCREASE AND IT REQUIRED TO BE PUBLICLY NOTICED AND IN THE NEWSPAPER AND A PUBLIC HEARING AND IT'S A DRAWN-OUT PROCESS TO DO THAT. THAT'S ALL I'LL SAY ABOUT THE TAX RATE.
HERE WHY DO WE ISSUE DEBT? SO WE TALKED A LITTLE BIT ABOUT THE BONDS EARLIER.
I JUST WANTED TO LET YOU KNOW WE ARE A DOUBLE-A TWO RATED. WE GOT RATED BY MOODY'S INVESTMENT SERVICES AND TRIPLE-A IS THE HIGHEST. WE ARE TEETERING ON GETTING TO
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THE NEXT LEVEL. BOND RATING GETS US INCREDIBLE RATES.THIS LAST YEAR WE WENT AND DID A REFUNDING WHICH IS THE SAME AS A REFINANCING IN PEOPLE TERMS AND WE GOT FIXED RATES OF 1.71 PERCENT, AND 1.81 PERCENT FOR 20 YEARS.
WE ISSUED $43 MILLION WORTH OF DEBT. SO WHEN WE ISSUE DEBT WE TRY AND MATCH [INAUDIBLE] BUT NEVER LONGER THAN 20 YEARS. CURRENTLY THE CITY'S DEBT IS $94 MILLION ON GO BONDS. AND THE ENTERPRISE FUNDS, 284 MILLION.
THAT MIGHT SEEM HIGH TO YOU ALL BUT IT'S EXTREMELY LOW. FOR COMPARISON PURPOSES, WE LOOK AT THE PERCENT OF ASSESSED VALUES IN OUR AREA AND IT'S ONLY 4.6 PERCENT OF OUR ASSESSED VALUES. A GOOD RULE OF THUMB IS NOT GO OVER 10 PERCENT.
OTHER CITIES THAT WE ARE NECK AND NECK WITH TO BE THE FOURTH LARGEST CITY BECAUSE WE'RE FIVE AT THE MOMENT, ONE OF THEM HAS A 6.3 PERCENT ASSESSMENT RATE, AND THEN 7.45.
SO WE HAVE A VERY, VERY SMALL DEBT LOAD COMPARED TO MOST CITIES OUR SIZE.
SO WE HAVE A DEBT MANAGEMENT POLICY AND IT COMES TO YOU FOR OF BLUE VELOCITY.
IT'S REQUIRED TO BE REVIEWED EACH YEAR WHICH I DO WITH OUR FINANCIAL ADVISORS AND STATE LAW REQUIRES IT. IF ANYTHING CHANGES, I BRING IT BACK TO YOU FOR APPROVAL.
THERE'S THINGS THAT WE ARE NOT ALLOWED TO ISSUE DEBT FOR AND WE CANNOT ISSUE DEBT FOR REGULAR RECURRING EXPENSES LIKE PERSONNEL OR MAINTENANCE OR SUPPLIES OR ANY KIND OF SERVICES AND ANY TIME WE ISSUE DEBT BECAUSE THERE REALLY IS NO CAP IN THE STATE OF TENNESSEE, THEY DON'T LIMIT HOW MUCH DEBT WE CAN HAVE BUT WE HAVE TO GET THE DEBT APPROVED BY THE COMPTROLLER OFFICE BEFORE WE ISSUE DEBT. THIS AGAIN IS ABOUT THE DIFFERENT TYPES OF DEBT.
I WANTED TO DRIVE HOME THE REVENUE BONDS ARE THE RESPONSIBILITY OF THE UTILITY FUNDS. WE DON'T PAY ANYTHING ON THEM AND THE SAME THING WITH THEM.
THEY'RE NOT RESPONSIBILITY FOR OUR GO BONDS. THEY DON'T PAY ANY OF OUR DEBTS EITHER. HOW IS DEBT -- HOW IS THE TAX RATE RELATED TO DEBT? THE GO BONDS ARE THE ONLY ONCE RELATED TO THE TAX RATE AND THAT AGAIN IS BECAUSE IT'S LINKED TO THE FULL FAITH AND CREDIT THAT YOU ALL WILL APPROVE AN INCREASE IN TAXES SHOULD WE NEED TO IN ORDER TO PAY THOSE DEBT SERVICE PAYMENTS BACK. OKAY.
FINALLY, ON TO OUR REAL BUDGET NOW. THIS IS JUST A SNAPSHOT OF THE ENTIRE BUDGET OF THE CITY. YOU CAN SEE IT'S NEARLY $549 MILLION.
THAT'S EVERY FUND OF THE CITY. DID YOU HAVE A QUESTION? >> [INAUDIBLE].
>> OF COURSE. >> YOU TALKED ABOUT THE 1.29 AND IT'S NOT A SUSTAINABLE RATE.
YOU KIND OF WENT INTO HOW IT NEEDS TO BE DONE BUT CAN YOU GIVE US MORE OF AN EXPLANATION HOW SOMETHING LIKE THAT WILL BE DONE SO IT KIND OF MEETS AT THE SAME TIME? YOU WERE SAYING IT'S A LONG PROCESS AND WE USUALLY ONLY THINK ABOUT IT WHEN IT'S -- WHEN THE ASSESSMENT IS DONE. SO HOW DO YOU THINK ABOUT IT TO WHERE IT WILL MEET?
>> EACH YEAR DURING A NORMAL BUDGET PROCESS WE CAN APPROVE THE TAX RATE IN THE BUDGET AND IT'S PART OF THE BUDGET PROCESS. IT WILL DOES GET DISCLOSED IN THE NEWSPAPER, THE WHOLE BIT, AND A PUBLIC HEARING. THAT'S THE EASIEST WAY WE WE CAN MAKE IT WHATEVER RATE YOU ALL APPROVE, CAN BE SET AT THAT POINT. THE REAPPRAISAL PROCESS IS THE ONLY TIME IT BECOMES SOMETHING DIFFERENT. THAT'S THE ONLY TIME IT CALLS FOR A SEPARATE PUBLIC NOTICE AND A SEPARATE PUBLIC HEARING AND SEPARATE MEETINGS TO APPROVE AND THEY CONSIDER IT A TAX RATE INCREASE EVEN IF IT GOES BELOW WHAT IT TYPICALLY IS.
>> ANOTHER QUESTION? >> I HAVE A QUESTION. >> WE HAVE OTHERS ON THE LIST.
AS SOON AS COUNCILPERSON ALLEN IS DONE I'LL GET TO THE LIST. >> COUNCILPERSON BUTLER, YOU ARE
RECOGNIZED. >> THE ONLY QUESTION I HAVE, WHEN WE WERE TALKING ABOUT PROPRIETARY THINGS, YOU KNOW, THE UTILITIES AND STUFF, WE DON'T INTERTWINE WITH THEM,
RIGHT? >> CORRECT. >> YOU AS THE FINANCIAL PERSON,
WHY DO WE HAVE ANYTHING TO DO WITH IT AT ALL? >> SOMEONE HAS TO HAVE
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OVERSIGHT. SOMEBODY HAS TO BE HELD RESPONSIBLE.>> SO YOU ARE SAYING FOR OVERSIGHT PURPOSES? >> YES.
I DON'T REALLY GET INTO THE DETAILS OF THOSE UTILITIES. THAT'S WHY SHE HAVE THEIR OWN FINANCE DIRECTORS. THEY GIVE US REPORTS. THEY REPORT TO THEIR COMMITTEES AND I GET THEIR REPORTS EVERY MONTH AND IF THEY NEED ANYTHING OR THEY NEED ASSISTANCE, LIKE WHEN THEY'RE ISSUING DEBT THEY TYPICALLY REACH OUT TO ME TO LEND ASSISTANCE.
LANCE WANTS TO ANSWER SOMETHING. >> BY LAW THE UTILITIES ARE MERE DEPARTMENTS OF THE CITY.
>> SO THAT I ASSUME THAT IS LIKE STATE LEVEL, FEDERAL LEVEL, SOMETHING TO THAT EFFECT.
WHEN YOU SAY BY LAW, LIKE HIGHER THAN US? >> NO.
IT'S IN OUR CITY CODE. >> THE CODE. >> THE UTILITIES -- WHAT HAPPENS IS THE CHARTER GIVES THE CITY, WHICH IS A MUNICIPAL CORPORATION AND IT'S BEEN THIS WAY SINCE THE 1870S, GIVES THE CITY THE ABILITY TO CREATE MUNICIPAL UTILITY DEPARTMENTS BUT THEY ARE IN FACT JUST DEPARTMENTS OF THE CITY SO IT'S NOT LIKE -- IT'S NOT JUST THAT WE'RE INTERTWINED IN THE SENSE FINANCIALLY BECAUSE OF JUST SOME OVERSIGHT REASONS. WHAT I'M TRYING TO TELL YOU IS THAT IT'S -- LEGALLY THERE'S A LAW THAT SAYS ALL THE UTILITIES, TO INCLUDE CD, AND THERE WAS A QUESTION ABOUT ONE TIME WHETHER THEY REALLY WERE A PART OF THE CITY OR NOT BUT THAT'S BEEN DECIDED BY A COURT AND THEY ARE IN FACT, ALL OF THE PROPRIETARY FUND DEPARTMENTS ARE JUST IN FACT DEPARTMENT OF CITY. THEY DON'T HAVE CAPACITY TO SUE OR BE SUED IN THEIR OWN RIGHT AND THEY DON'T HAVE THE LEGAL CAPACITY TO CONTRACT AND BE CONTRACTED WITH SO IT'S REALLY
THE CITY THAT WILL HAS LEGAL CAPACITY. >> THANK YOU.
>> THANK YOU. COUNCILPERSON BUTLER. COUNCILPERSON REYNOLDS, YOU'RE
RECOGNIZED. >> HI. I WAS JUST WONDERING, THE RAINY
DAY FUND, 20 PERCENT? >> RIGHT. >> DO WE SET THAT IN THE BUDGET
OR WHO DECIDES THAT. >> WE PASSED A POLICY MANY YEARS AGO AND WE'RE REQUIRED BY STATE LAW TO HAVE THAT POLICY AND THE POLICY SAYS THAT'S THE 20 PERCENT.
>> DO YOU KNOW WHAT THE AVERAGE IS FOR THE REST OF THE CITIES IN THE STATE?
>> EVERYBODY IS A LITTLE BIT DIFFERENT AND IT REALLY DEPENDS ON YOUR SIZE AND THERE ISN'T REALLY A DEFINED BEST PRACTICE. GOVERNMENT ACCOUNTING STANDARDS BOARD IS WHO SETS RULES FOR US KIND OF AND THEN WE HAVE THE GFOA ASSOCIATION THAT PROVIDES US SOME GUIDANCE AND BEST PRACTICES AND IT'S ANYWHERE FROM A CITY MIGHT NEED THREE MONTHS' WORTH OF CASH FLOW IN THEIR RAINY DAY FUND AND SOME ARE A PERCENTAGE. IT'S WHAT WORKS FOR THEM.
FOR US, THREE MONTHS WOULD PROBABLY BE A LITTLE TOO MUCH AND SOMETIMES IT MAY NOT BE ENOUGH BECAUSE THERE'S SOME MONTHS WHERE WE HAVE A LOT MORE EXPENSES THAN WE DO OTHERS BECAUSE OUR EXPENSES DON'T HAPPEN STEADILY BUT THE 20 PERCENT IS A REALLY GOOD
STANDARD AND IT WORKS REALLY WELL. >> THANK YOU.
>> THANK YOU, COUNCILPERSON REYNOLDS. COUNCILPERSON RICHMOND, YOU'RE
RECOGNIZED. >> THANK YOU, MAYOR. MS. MATTA, HOW ARE YOU? THANK YOU FOR THIS. TWO PARTS. BACK UP TO THE SLIDE, WHERE DOES THE MONEY GO. I SEE THE ENTERPRISE FUND IS THE LARGEST PIECE.
THE SMALL SLIVER THAT SAYING COMMUNITY DEVELOPMENT, HOW DO WE AS CITY COUNCIL BEGIN TO -- HOW DO WE GO -- CONGRESS SITEIONTS ALWAYS HAVE GREAT IDEAS AND THEY SAY WE NEED THIS.
I WANT A BETTER QUALITY OF LIFE. CAN YOU EDUCATE US ON WHAT GOES INTO THAT.
HOW DO WE RAISE FUNDS AT THE LEVEL OF OUR WARD BECAUSE I SEE THE CITY TAKES CARE OF ITSELF BUT WHEN IT COMES DO CREATING A BETTER QUALITY OF LIFE FOR THE WARD, THE IDEA IS THAT THAT SLIVER IS PART OF THAT? STRAIGHTEN THAT PART OUT. HOW DO WE GET MONEY INTO THAT
COMMUNITY DEVELOPMENT SECTION TO INCREASE THE QUALITY OF LIFE. >> THE MAJORITY IS GRANTS, FEDERAL GRANTS, AND AN ENTITLEMENT COMMUNITY, SO WE GET COMMUNITY DEVELOPMENT BLOCK GRANTS AND WE ALSO GET HOME FUNDS, ESG EMERGENCY SOLUTIONS GRANTS AND THEY ARE TO HELP IN CERTAIN TRACT AREAS. DEPENDING ON YOUR WARD AND IF THERE IS A TRACT IN YOUR WARD
THOSE FUNDS COULD BE SPENT THERE. >> LET'S SAY THERE'S AN IDEA,
[00:35:02]
AND THEY SAY WE HAVE A GREAT IDEA. WE WANT TO SEE THIS.WE JUST KIND OF WORK WITH YOU AND. >> WORK WITH THE COMMUNITY DEVELOPING DEPARTMENT. THEY HAVE A DEPARTMENT HEAD AND HE'S PROBABLY THE BEST ONE THAT COULD TELL YOU IF IT COULD BE DONE, WITH THEIR FUNDS OR NOT BECAUSE THEY ARE RESTRICTED ON WHAT THEY CAN USE IT FOR. THEY PRESENT A PLAN FOR ALL THEY PLAN ON SPENDING THEIR FUNDS AND THEY ARE REQUIRED TO SUBMIT THAT THROUGH HUD EACH YEAR AND THAT HAS A LOT OF DETAILS IN IT.
IT COMES TO COUNCIL EVERY YEAR. >> I WENT TO ONE OF THE WORKSHOPS AND IT WAS VERY INFORMATIVE. WE MAPPED OUT THE HOT AREAS, AND THE COMMUNITY GOT TO INPUT WHERE THEY FELT LIKE THE FOCUS SHOULD BE SO IT WAS VERY COMPREHENSIVE AND EDUCATION.
THE SECOND PART IS COULD YOU HELP US UNDERSTAND -- I NEVER REALLY UNDERSTAND MAYBE IS THE FINANCE COMMITTEE THAT IS PART OF THE CITY PART OF YOUR DEPARTMENT OR IS IT SOMETHING
TOTALLY DIFFERENT? HOW DO THE TWO WORK TOGETHER. >> THE FINANCE COMMITTEE IS A
STANDING COMMITTEE. >> RIGHT. >> I THINK PROBABLY OUR CODE SAYS WHICH COMMITTEES ARE STANDING COMMITTEES. FINANCE I THINK IS A REQUIRED ONE. IT'S FINANCE ADMINISTRATION. IT'S NOT MY COMMITTEE.
I REPORT TO THAT COMMITTEE AS WELL AS OTHER DEPARTMENTS, AND [INAUDIBLE] IT REPORTS AND HR.
I'M TRYING TO THINK OF WHO ELSE IS THERE. LEGISLATIVE.
I'M SORRY? >> WHAT COMMITTEES THERE ARE IS ENTIRELY UP TO THE DISCRETION OF
THE MAYOR. >> RIGHT. IN TERMS OF WHAT THE FINANCE -- I DON'T EVEN KNOW WHAT THEY DO SO I'M TRYING TO LEARN MORE AND SEE HOW THEY WORK WITH EITHER THE BUDGET OR -- IT SOUNDS LIKE IT'S SEPARATE BUT JUST TRYING TO UNDERSTAND.
>> WHAT THE LAW REQUIRES IS FOR, AT A MINIMUM, IN OUR CITY CODE AND OUR CITY CHARTER IS FOR THE MAYOR TO PREPARE A BUDGET AND PRESENT IT TO THE COUNCIL. TRADITIONALLY THE BUDGET HAS GONE THROUGH THE FINANCE COMMITTEE, MOST YEARS THAT I CAN RECALL, MAYBE EVERY YEAR, BUT IT DOESN'T HAVE TO. THE MAYOR CAN JUST PRESENT HIS BUDGET TO THE CITY COUNCIL.
HE HAS A LEGAL DUTY TO PRESENT A BUDGET. >> RIGHT.
>> AND IT'S YOUR LEGAL DUTY TO CONSIDER IT. YOU DON'T HAVE TO ACCEPT IT.
YOU CAN AMEND IT AS YOU HAVE GONE THROUGH THE AMENDMENT PROCESS, COUNCILPERSON RICHMOND,
BUT THAT'S THE ONLY LEGAL REQUIREMENTS THERE ARE. >> THANK YOU.
>> THAT DOES IT. THANK YOU, MAYOR. >> BACK TO YOU COUNCILPERSON
ALLEN. >> ONE MORE QUESTION. THIS MIGHT BE NOT WHERE I WOULD GO TO TO GET THIS ANSWER, BUT YOU HEAR OF OTHER CITIES DOING LIKE AN ENTERTAINMENT DISTRICT AND THERE'S A CERTAIN AMOUNT OF TAX IN THAT DISTRICT OR SOMETHING LIKE THAT AND THEN THE COUNCIL CAN TAKE SOME OF THAT MONEY AND PUT IT TOWARDS A COMMUNITY-TYPE PROJECT AND HAVE IT EARMARKED FOR THAT. IS THIS THE PROCESS WE WOULD DO THAT?
>> THERE'S BEEN A CHANGE IN STATE LAW ON THAT. THEY'RE NOT APPROVING ENTERTAINMENT DISTRICTS ANYMORE AND I THINK PROBABLY MARK MAMTOF WHO HAS BEEN A CONSULTANT WITH US BEFORE IS PROBABLY THE EXPERT TO GIVE US THAT INFORMATION. CURRENTLY KNOXVILLE -- NOT KNOXVILLE. MEMPHIS, ELVIS REGION, GRACELAND, THE LAST ONE TO GET
APPROVED AND THEY'RE NOT APPROVING ANYMORE. >> SO NO DISTRICTS LIKE THAT,
PERIOD? >> NO. BUT THERE'S TIF DISTRICTS AND DOWNTOWN WE HAVE A TIF DISTRICT WITH TWO PROJECTS IDENTIFIED THAT IT WILL SUPPORT.
ALL OF THE INCREASED VALUE IN THE PROPERTIES WITHIN THAT DISTRICT, IT TAKES OUR DEBT SERVICE OUT OF THERE AND COUNTY AND CITY ARE BOTH INVOLVED SO ANYTHING COMMITTED TO DEBT IMMEDIATELY COMES OUT OF THE CALCULATION AND ANYTHING THAT'S INCREASED OVER TIME ABOVE THE DEBT SERVICE PART GOES INTO A SPECIAL FUND TO PAY FOR THE MPECK ON THE COUNTY SIDE AND THE CITY'S SIDE, IT'S IDENTIFIED TO GO TO THE PERFORMING ARTS CENTER.
IT HAS TO BE IN THE DOWN AREA THAT'S WITHIN THAT DISTRICT. SO BUT YOU CAN'T CHARGE ANOTHER
TAX ON IT. >> THANK YOU. >> ARE WE GOOD?
THANK YOU. >> BACK TO YOU COUNCILPERSON RICHMOND.
>> THANK YOU, MAYOR. WHAT IS A TIFF DISTRICT? >> TAX IN CRA MEANTING
[00:40:07]
FINANCING. THEY SET A DATE, WHAT IS THE VALUE OF THAT PROPERTY.AND FROM THAT DATE ON EVERY YEAR, THAT'S THE MINIMUM AMOUNT, AND INCREASE WITH THE INCREASE,
THAT'S THE INCREMENT AND . >> TYPICALLY IT'S A GEOGRAPHIC BOUNDARY WHERE YOU DRAW THE LINES AND DECIDES WHAT INSIDE OF THAT AND THERE'S LIMITED USE AS TO WHAT THE FUNDS CAN BE USED FOR. TYPICALLY INFRASTRUCTURE, WATERS OR UTILITIES, ROADS, OTHER
THINGS LIKE THAT BUT IT CAN BE USED FOR JUST GENERAL PURPOSES. >> RIGHT.
>> IT HAS TO BE VERY SPECIFIC. >> IS THIS HANDED TO US FROM THE STATE OR DO WE DECIDE AS A
COUNCIL BODY? >> THERE'S A PROCESS THE STATE LAW DICTATES THAT YOU HAVE TO FOLLOW, AND IT'S AN ORDINANCE AND SO WE WOULD HAVE TO GO THROUGH THAT PROCESS.
IT'S NOT AN OVERNIGHT. IT WOULD TAKE PROBABLY 90 DAYS MINIMUM.
USUALLY ABOUT SIX MONTHS OR SO BECAUSE IT'S VERY LEGALLY INTRICATE.
>> BACK TO YOU COUNCILPERSON REYNOLDS. >> HOW MUCH IS IN OUR FUND RIGHT
NOW. >> OUR GENERAL FUND? >> NO.
THE TIF. YOU SAID WE HAD A TIF. >> THIS IS THE VERY FIRST YEAR THAT WE PAID ANYTHING BECAUSE THERE HAS TO BE AB INCREASE IN VALUE, OH FY20 WAS THE FIRST YEAR AND WE PAID ANY OF THE INCREMENT THAT WAS FROM OUR TAX MONEY GOES TO TO [INAUDIBLE] AND
WE SENT THEM $200. IT WAS NOT MUCH. >> DON'T SPEND IT ALL IN ONE
PLACE. >> EXACTLY. >> LET ME SAY ONE THING.
THE TAX INCREMENT FINANCING LAW, IT'S A COMPLEX LAW AND TAKES A LONG TIME.
YOU HAVE TO HAVE AN ECONOMIC STUDY DONE. IT TAKES TIME AND IT'S CREATING COMPLICATED. WHAT IT DOES AND THE WHOLE PURPOSE BEHIND IT IS REALLY HOW IT GOT STARTED, THAT'S TO PERMIT CITIES WORKING WITH -- AND COUNTIES, TOO, FRANKLY, WORKING WITH DEVELOPERS TO FIX UP BLIGHTED AREAS, TO HELP IMPROVE AREAS THAT HAS A LOW TAX BASE AND THE WAY IT WORKS IS YOU DESIGNATE A CERTAIN YEAR AS THE BASE TAX YEAR AND THAT'S YOUR FLOOR, AND LET'S SAY THERE'S TEN INDEPENDENT PROPERTIES WITHIN THE TIF DISTRICT AND THOSE PROPERTIES GENERATE MAYBE $100,000 IN PROPERTY TAXES. I'M JUST THROWING OUT NUMBERS.
YOUR BASE YEAR, SAY 2020, IT GENERATED 100,000. WELL, THE WHOLE PURPOSE OF CREATING THE TIF DISTRICT IS TO GET DEVELOPERS TO COME IN AND THEY CAN GET TAX CREDITS AND TAKES INNOCENT I WAS AND BREAKS AND YOU AGREE ON THE FRONT END WHAT THEIR TAXES WILL BE.
THE IDEA BEHIND IT, AS THE AREA GETS DEVELOPED THOSE PROPERTIES WILL INCREASE IN VALUE AND THEREFORE THE TAXES THAT WOULD BE OWED ON THEM IS GOING TO INCREASE IN VALUE AS WELL AND THE INCREASE, THAT'S WHERE THE TAX INCREMENT PART COMES IN, GETS USED TO PAY OFF DEBT THAT WAS INCURRED TYPICALLY BY THE GOVERNMENT TO DO THE INFRASTRUCTURE LIKE THE MAYOR WAS TALKING ABOUT AND SOMETIMES IT CAN BE USED AS INNOCENT I WAS FOR THE DEVELOPERS BECAUSE IF YOU DON'T SWEETEN THE POT FOR THEM IN SOME WAYS, BLIGHTED AREAS MAY NEVER GET REDEVELOP.
IT'S A 20-YEAR TIME PERIOD WHERE THE TAX INCREMENT FINANCING -- THAT'S HOW LONG THE DEAL LASTS BASICALLY. THERE'S A CAP ON IT FOR 20 YEARS.
YOU CAN GO LONGER BUT YOU HAVE TO JUMP THROUGH A BUNCH OF LEGAL HOOPS I BELIEVE TO DO THAT AS I
RECALL. >> I CAN SEND YOU AN IMPASSE PAMPHLET ABOUT TIF.
>> I WOULD BE INTERESTED. >> I'LL SEND IT OFF TO THE COUNTY.
>> IT'S A FASCINATING PROCESS, HE SAYS RELUCTANTLY. COUNCILPERSON ALLEN, BACK TO
YOU. >> LAST QUESTION. SO IS THAT SOMETHING THAT YOU COULD JUST HAVE THAT TIF DISTRICT DOWNTOWN? FOR EXAMPLE SAY ON REQUIRE SIDE DRIVE, YOU KNOW, THAT AREA IS PRETTY BAD OFF. COULD THAT BE MADE LIKE INTO ONE OF THOSE DISTRICTS AND THEN WE FUNNEL THAT BACK INTO THE IMPROVEMENT OVER THERE?
[00:45:02]
I'M TRYING TO FIGURE OUT HOW IT WORKS TO WHERE WE COULD. >> LANCE, I GOT THIS.
I GOT THIS. >> ALL RIGHT. THE SIMPLE ANSWER IS YES.
THE COMPLICATED ANSWER IS THERE'S A LOT INSIDE OF JUST PICKING A STREET AND SAYING IT'S BLIGHTED AND WE'RE GOING TO IMPROVE IT. WE HAVE TO SPECIFICALLY DESIGNATE WHAT WE'RE USING THE MONEY FOR BE IT UNDERGROUND UTILITIES OR BE IT SIDEWALKS THAT -- THERE'S A HOST OF THINGS YOU CAN DO BUT THE SIMPLE ANSWER IS YES.
BUT THERE NEEDS TO BE A PLAN AND STUDY AND IT WILL TAKE A LITTLE WHILE TO GET THAT DONE.
>> OKAY. THANK YOU. >> MR.ET ME JUST ADD THE WHOLE PURPOSE BEHIND THIS IS BECAUSE THE DEFAULT IN THE LAW IS THAT ALL PROPERTY TAXES MUST GO TO SUPPORT THE GENERAL FUND AND BECAUSE OF THAT THE LEGISLATURE CREATED THE SPECIAL LAWS AND THERE'S ACTUALLY MULTIPLE TIF LAWS ON THE BOOKS. THEY CREATED THE SPECIAL LAWS SO YOU CAN CARVE OUT PARTICULAR AREAS AND USE THE INCREASE IN THE PROPERTY VALUE TO FINANCE
THE DEVELOPMENT OF THAT AREA. >> THANK YOU. >> DOES THAT HELP?
BACK TO YOU, LAURIE. >> I LOVE QUESTIONS SO PLEASE, I FEEL LIKE THEN YOU UNDERSTAND.
THIS IS OUR CURRENT BUDGET FOR FY21. IT'S A SNAPSHOT OF THE ENTIRE CITY. IT SHOWS OUR PROJECTED REVENUES OF $573 MILLION.
EXPENSES OF $548 MILLION. TURN THE PAGE. I'M GOING TO FOCUS ON THE GENERAL FUND A LITTLE BIT BECAUSE TYPICALLY THE GENERAL FUND IS THE ONE THAT'S [INAUDIBLE] BECAUSE THAT'S WHERE THE TAX DOLLARS GO. TYPICALLY THE GENERAL FUND AND THE CAPITAL PROJECTS FUNDS THAT ARE REALLY FOCUSED ON, AND BEFORE WE DO THE BUDGET PROCESS, THIS PAST YEAR WAS NOT YOUR NORM. WE DID I GUESS THREE BUDGETS.
WE STARTED ONE, LIKE OUR NORMAL PROCESS, AND THEN THE STATE CAME OUT WITH A RULING WITH SOMETHING SPECIAL WE HAD TO DO TO GET THE BUDGET APPROVED ON TIME. WE DID THE STATUS QUO BUDGET WHICH GAVE US BARELY ENOUGH MONEY TO APPLY WITH THE LAW AND CONTINUE UNTIL WE COMPANY SEE WHAT IS HAPPENING WITH COVID AND HOW THE REVENUES WOULD BE AND HOW WE WOULD BE IMPACTED AND WHAT WE COULD AFFORD TO DO. WE CAME BACK IN OCTOBER AND DID AN AMENDMENT TO PROVIDE THE DEPARTMENTS WITH THE FUNDS THEY NEEDED. BY THAT POINT WE SAW THE TRENDS WITH THE REVENUES AND WE KNEW HOW IF AT ALL WE WERE GOING TO BE IMPACTED.
SO TYPICALLY THE BUDGET PROCESS WOULD START WITH THE CAPITAL PROJECTS FUND LIKE I TOLD YOU WITH THE FIVE-YEAR IMPROVEMENT PLAN AND THEN WE WOULD BE INTO THE GENERAL FUND SO THE GENERAL FUND, WE HAVE TWO MAIN SECTIONS OF FINANCING SOURCES. IT'S $93.3 MILLION, THAT'S THE MAIN OPERATING REVENUES. THEN FINANCING SOURCES. SO OPERATING REVENUES ARE TAXES AND THOSE AREN'T JUST PROPERTY TAXES BUT LOCAL OPTION SALES TAX AND FRANCHISE FEES AND MY PILOT PAYMENTS MADE BY THE IDB AND HOUSING AUTHORITY. THEY PAY PILOTS.
THEY ARE PAYMENTS IN LIEU OF TAXES SO THEY ARE EXEMPT ENTITY BUT THEY HAVE -- IN LIEU OF TAXES, THEY COMPILE A PAYMENT. INTERGOVERNMENTAL REVENUES HERE, AND THOSE ARE STATE-SHARED REVENUES, CONTINUALLY WHAT WE CALL THEM. AND THAT'S LIKE THE TVA REPLACEMENT TAXES BECAUSE THEY DON'T PAY TAXES. THEY PAY IT THROUGH THE STATE-SHARED REVENUES. IT ALSO INCLUDES THE GAS TAX, YOU KNOW, THE EXTRA GAS TAXES WE PAY THAT GOES TO FUND THE ROADS. THOSE COME INTO ABOUT THAT CATEGORY AND THEY ARE RESTRICTED FOR USE FOR THE ROADS, SO FOR THE STREET DEPARTMENT. UNDER THE OTHER CATEGORIES, LICENSES AND PERMITS, AND THIS IS MOSTLY BUILDING AND CODES, MOSTLY BUILDING PERMITS BUT THERE'S OTHER PERMITS IN THAT AREA LIKE THE SHORT TERM RENTAL PERMIT IS IN THAT AREA AS WELL AS FIREWORKS PERMITS. THEY ALL FALL IN THAT CATEGORY. CHARGING FOR SERVICES, THE MAJORITY OF THOSE ARE THE GOLF COURSES AND PARKS AND REC BECAUSE WE REALLY DON'T CHARGE FOR OTHER SERVICES. FUNDS AND FORFEITURES, TICKETS AND COURT FEES, AND THEN MISCELLANEOUS, THAT MOSTLY IS THINGS LIKE RENTAL INCOME THAT WE RECEIVED FROM OUR FACILITIES,
[00:50:08]
INTEREST EARNINGS AND REBATES. THEN THE FINANCING SOURCES, THIS IS -- IT'S CALLED THAT AND REQUIRED TO BE CALLED THAT BUT IT'S REALLY JUST FROM OTHER PLACES, RIGHT, NOT NORMAL OPERATING. THIS IS WHERE THE PILOTS ARE FOR GAS AND WATER AND CDE.THIS IS PAYMENT IN LIEU OF TAXES, AND THEY ALWAYS LIKE ME TO SAY AT THIS POINT THEY ARE THE BIGGEST TAXPAYERS AND THEY TRULY ARE. IF THEY PAY PROPERTY TAXES THEY WOULD BE PAYING ROUGHLY $2.000000. BUT IT'S PILOT AND THAT'S IN LIEU OF TAXES AND PAY US $5.2 MILLION. GAS AND WATER, NUMBER TWO, $3.6 MILLION. WE TRANSFER BETWEEN FUNDS AND THAT GOES IN THIS AREA.
THAT $467,000 THAT'S IN THERE, WE CLOSED A FUND AND THAT WAS THE BALANCE IN THERE THAT NEEDED TO GO BACK TO THE GENERAL FUND, SO THAT'S ALL THAT IS, KIND OF A CLEANUP.
SALE OF SURPLUS PROPERTY, FINANCE COMMITTEE GETS A LIST OF THINGS THAT WILL WE'RE SELLING.
WE SELL ON E-GOV, KINDS OF LIKE EBAY BUT FOR GOVERNMENTS A HE WE REPORT ON THAT, THE FINANCE COMMITTEE, EVERY MONTH AND THAT'S WHERE THE SALE PROPERTIES, ANY SURPLUS PROPERTY GOES. EXTRAORDINARY SOURCES FOR COVID, WE THOUGHT COVID WAS EXTRAORDINARY. WE HAVE FOUND OUT IT'S FOR THE ACCORDING TO ACCOUNTING STANDARDS SO THERE'S GOING TO BE A LITTLE BUILT OF MOVING MONEY AROUND THROUGH THE BUDGET PROCESS AND I'LL EXPLAIN THAT WHEN WE GO THROUGH IT THIS YEAR BECAUSE GOVERNMENTAL ACCOUNTING STANDARDS HAVE SAID IT'S NOT EXTRAORDINARY AND IT'S NOT UNUSUAL BECAUSE IT'S ASSUMED TO CONTINUE FOR THE FORESEEABLE FUTURE. WE'LL HAVE TO MOVE THAT KIND OF SUFFER AROUND. THE TRANSFER FROM THE PARKING COMMISSION, THAT IS PARKING COMMISSION -- IT'S AN ENTERPRISE FUND AND REMEMBER I SAID THAT WE CAN'T BALANCE IT FROM ONE ANOTHER SO THEY'RE NOT BIG ENOUGH TO HAVE THEIR OWN PEOPLE, ACCOUNTING DEPARTMENTS, THEIR OWN EMPLOYEES SO THE FINANCE DEPARTMENT PROVIDES EMPLOYEES TO PARKING AND THEN PARKING PAYS BACK THE FINANCE DEPARTMENT FOR THOSE PEOPLE. THAT'S WHAT THAT'S FOR.
THE GENERAL FUND EXPENDITURES ARE BROKEN INTO DIFFERENT CATEGORIES AND THIS IS THE DEPARTMENTAL SECTION. THIS IS GENERAL FUND DEPARTMENTS, NOT ANY OF THE ENTERPRISE DEPARTMENTS. SO YOU CAN SEE THE BIGGEST TOTALS, $92.6 MILLION JUST TO FUND THAT DEPARTMENT WITH THE MAJORITY OF THOSE COSTS ARE PUBLIC SAFETY.
$57.1 MILLION, OR 62 PERCENT OF ALL OF OUR DEPARTMENTAL COSTS GO TO PUBLIC SAFETY.
THAT'S POLICE, DISPATCH, FIRE, CITY COURT AND BILLING AND CODES.
WE HAVE $14.7 MILLION, ALMOST 8, GOES TO OUR STREET DEPARTMENT AND THAT IS PAYING FOR PAVING.
THE WAY WE ACCOUNT FOR THINGS, PAVING EXISTING ROADS IS MAINTENANCE EXPENSE.
IT'S OPERATING A MAINTENANCE, FOR THE CAPITAL. THE ONLY TIME WE'LL SEE CAPITAL FOR STREETS IS WHEN WE'RE BUILDING NEW ONES OR IMPROVING AND MAKING IT LARGER.
THAT INCLUDES ALL THE PAVING WITH HE GET DONE EACH YEAR. I ALSO INCLUDED IN THIS SECTION THE ADMINISTRATION OFFICES ARE KIND OF LIKE LEGAL INTERNAL AUDIT, FINANCE, HR, LEGISLATIVE, AND COUNCIL FALLS INTO THAT CATEGORY, BUT THERE'S ALSO RETIREES INSURANCE AND UNEMPLOYMENT AND THAT'S $1.8 MILLION AND THAT'S BECAUSE WE HAVE COMMITTED TO PROVIDING RETIREE HEALTH INSURANCE AND BENEFITS FOR A CERTAIN GROUP WHICH WE DON'T ANY LONGER BUT WE HAVE TO PAY THAT EVERY YEAR, WHATEVER AMOUNT THAT GETS INCURRED BY THE CURRENT RETIREES. THEY ARE CALLED OTHER POST EMPLOYMENT BENEFITS.
ANYBODY WHO RETIRED WITH 30 YEARS WE PROVIDE FULL BENEFITS FOR THEM, INTO THEIR RETIREMENT, WHICH WE STOPPED THAT BUT THAT'S WHAT THAT'S FOR. THEN THERE'S TWO OTHER LITTLE THINGS IN THERE, CRIMESTOPPERS AND HRC, 103,000, AND MOST IS HRC.
GETS A PORTION OF THE TICKET SALES. IT'S BASED ON TICKET FEES, HOW MANY, AND THAT'S HOW THEY GET THEIR ALLOCATION ON THAT AND THAT'S WHAT THEY USE AND THEY GIVE A PRESENTATION EVERY YEAR TOO AND THEY DO A GREAT JOB ON THAT.
THAT'S HOW THEY DO THE TIPS TO HELP SOLVE CRIMES. I WANT TO SAY THE DEPARTMENTS O
[00:55:02]
A GREAT JOB MANAGING THE BUDGETS. THERE'S NO FLUFF IN THE BUDGETS.MY DEPARTMENT, WE PROBABLY HAVE FOUR ACCOUNTANTS THAT GO THROUGH EXTREME DETAILS IN THESE BUDGETS AND LOOK FOR EVERY NOOK AND CRANNY THAT SOMEBODY COULD HAVE HID MONEY.
WE PROBABLY DRIVE THEM INSANE BECAUSE WE QUESTION EVERYTHING. IF ANYTHING LOOKS ODD TO US WE'RE TAKING IT OUT OR CALLING IT OUT ON THEM. THERE REALLY ISN'T FLUFF IN THOSE BUDGETS. ON THIS ONE, THERE'S OTHER COMMITMENTS THAT THE CITY HAS.
WE HAVE SHARED EXPENDITURES WITH THE CITY AND COUNTY, WITH THE STATE AND COUNTY.
SORRY. REGIONAL AIRPORT, WE ENTERED INTO AGREEMENTS WHERE WE SUPPORT THEIR DEFICITS 50/50 WITH THE COUNTY. REGIONAL PLANNING COMMISSION IS THE SAME WAY, 50/50 WITH ACCOUNTING. THE LIQUOR TAXES, WE [INAUDIBLE] AND WE'RE REQUIRED T TO GIVE 50 PERCENT OF THAT OVER TO THE COUNTY.
THAT'S REQUIRED TO BE USED FOR SCHOOLS SO THAT'S MORE MONEY COLLECTED WITHIN THE CITY THAT GOES TO THE SCHOOL SYSTEM. THEN THERE'S OUR OTHER FUNDED AGENCIES AND YOU HAVE HEARD THE TERM COMPONENT UNITS AND THEY'RE ENTITIES THAT WE HAVE TAKEN RESPONSIBILITY FOR, FOR ONE REASON OR ANOTHER, TO PROMOTE THE CITY, LIKE THE MUSEUM AND THE SENIOR CENTER, ARTS AND HERITAGE COUNCIL, THEY'RE NOT A COMPONENT USE BECAUSE THEY ARE TOO SMALL, ONLY $71,000 BUT WE SUPPORT THE ARTS AND HERITAGE DEVELOPMENT COUNCIL AND THE EXECUTIVE DIRECTOR , SHE SERVES ON THE STATE BOARD TO REPRESENT THIS AREA FOR THE ARTS AND HERITAGE.
THE COMPONENT UNITS THAT WE HAVE, WE HAVE RESPONSIBILITY OVER THEM SO THE ACCOUNTABILITY SO IF SOMETHING GOES WRONG OVER THERE WE'RE ON THE HOOK SO I WORK VERY CLOSELY WITH BOTH OF THEM. THEY ARE AUDITED EXTERNALLY LIKE WE ARE AND THEY HAVE TO PROVIDE THOSE TO US AND WITH HAVE TO PUT THEM IN OUR AUDITED FINANCIAL STATEMENTS.
MY DEPARTMENT THEMSELVES CREATES THE ACTUAL COMPREHENSIVE ANNUAL FINANCIAL REPORT THAT OUR EXTERNAL AUDITORS REVIEW FOR ACCURACY AND FIND ANY MATERIAL ISSUES IN IT AND IT'S AN INDEPENDENT AUDITOR THAT DOES IT. OVER $3 MILLION IN TOTAL IS ALLOCATED TO THESE ENTITIES. THIS ONE, LAST BUT FAR FROM LEAST IS THE OTHER FINANCING USES AND THIS IS LIKE TRANSIT, COMMUNITY DEVELOPMENT AND DEBT SERVICE.
SO TRANSSYSTEM IS AN ENTERPRISE FUND AND I KNOW YOU TOLD WE CAN'T SHARE MONEY.
TRANSIT IS A LITTLE DIFFERENT. BY STATE LAW WE ARE ALLOWED TO GIVE THEM MONEY BECAUSE THEY ARE FUNDED WITH GRANTS AND THERE'S A REQUIREMENT OF A SHARE THAT THE LOCAL GOVERNMENT HAS TO PAY TO MATCH THOSE GRANTS SO THEY'RE FUNDED WITH FEDERAL DOLLARS AND STATE DOLLARS AND THEN LOCAL DOLLARS. HERE'S THE FUND. COMMUNITY DEVELOPMENT IS A SPECIAL REVENUE FUND OF THE CITY, THAT WE TALKED ABOUT WITH COUNCILPERSON RICHMOND.
MOSTLY FEDERAL GRANTS BUT THEY REQUESTED FUNDING THIS YEAR SO THAT'S WHAT THAT IS.
DEBT SERVICE, THAT IS OUR TOTAL DEBT SERVICE PAYMENTS FOR THE YEAR, SO THIS COME IN FOR TAX MONEY AND THEN WE TRANSFER IT OUT INTO THE DEBT SERVICE FUND AND THEN THOSE FUNDS ARE RESTRICTED AND ONLY CAN BE SPENT TO PAY OFF OUR DEBT. THERE'S THE EXTRAORDINARY COVID THING THAT I'M GOING TO HAVE TO MOVE. SO OUR TOTAL GENERAL FUND BUDGET
IS $112.5 MILLION. OKAY. >> MS. MATTA, I HAVE A QUESTION.
>> YES, MA'AM. >> HAVE THESE FUNDS ALREADY BEEN GIVEN TO THESE ENTITIES THAT ARE
LISTED? >> ALL OF THE ENTITIES THAT WE FUND OTHER THAN DEPARTMENTS, DEPARTMENTS SPEND THE MONEY AND WE PAY THEIR BILLS BUT ALL OF THE OTHER ENTITIES GET A PORTION EACH MONTH, OR EACH QUARTER. IT DEPENDS ON THE ENTITY. FOR INSTANCE, THE AIRPORT GETS A QUARTERLY PAYMENT THEY PREFER ONCE EVERY THREE MONTHS AND REGIONAL PLANNING COMMISSION,
ONCE A MONTH, SO IT DEPENDS ON THE ENTITY. >> WHAT ABOUT THE ROXIE?
>> IN OCTOBER THEY HAVE BEEN RECEIVING $20,000 A MONTH, WHEN IT GOT APPROVED.
>> 20,000 A MONTH. THE FIRST OF THE MONTH? END?
MIDDLE? WHEN IS IT GIVEN. >> THE FIRST OF THE MONTH IS
WHEN WE ALLOCATE THE FUNDS TO ALL OF OUR ENTITIES. >> OKAY.
[01:00:07]
THANK YOU VERY MUCH. >> THANK YOU, COUNCILPERSON SMITH.
WERE YOU FINISHED? >> YES, SIR, THANK YOU. >> COUNCILPERSON ALLEN, YOU'RE
RECOGNIZED. >> ON THIS WITH SOURCES OF REVENUE, GENERAL FUND, THESE
NUMBERS RIGHT HERE IS WHAT HAS COME YOU INSOFAR THIS YEAR? >> NO.
>> IS THIS AN ESTIMATE? >> THIS IS OUR BUDGET WHICH IS JUST AN ESTIMATE.
>> SO WE'RE ESTIMATED TO BE UPSIDE DOWN? >> NOT REALLY BECAUSE REMEMBER I TALKED ABOUT THE BALANCING ACT WITH THE 20 PERCENT, SO REALLY HOW WE START OUR BUDGET PROCESS IS YOU TAKE THE FUND BALANCE, WHATEVER WE HAVE, AND TAKE 20 PERCENT AND TAKE IT OUT AND PUT THAT TO THE SIDE. WHATEVER'S LEFT IS A STARTING POINT.
THEN I ADD TO IT ALL OF THE REVENUES THAT I THINK WE'RE GOING TO COLLECT FOR THE YEAR AND THEN WE CAN SPEND ALL OF THAT. THAT'S OUR STARTING POINT FOR WHAT WE CAN SPEND SO IT INCLUDES SOME OF THE FUND BALANCE IN THERE TO BE SPENT SO WE'RE NOT UPSIDE DOWN. IT'S JUST THAT ALL OF THE REVENUES ARE NOT COMING IN IN ONE YEAR. SOME OF THEM CAME IN FOR THIS YEAR'S.
>> OKAY. THAT WAS MY QUESTION ABOUT THE CHARGES FOR SERVICES AND THE FINES AND FORFEITS. HOW DO WE ESTIMATE THAT NUMBER? FROM PRIOR YEARS?
>> I ACTUALLY TRACK -- I HAVE PROBABLY 15 YEARS' WORTH OF DETAILS ON EVERY ONE OF THESE.
IT'S NOT ONE LIKE LIKE THIS. RIGHT. >> YOU'LL ACTUALLY GET THIS IN YOUR BUDGET BOOK THAT LISTS ALL OF THEM. I ONLY GIVE YOU A YOU HAVE DID OF YEARS BECAUSE I DON'T THINK YOU WANT TO GO BACK HISTORICALLY BUT WE ESTIMATE EVERY SINGLE LINE. WE LOOK AT THE TRENDS AND WHAT IS GOING ON.
LIKE FOR INSTANCE, WITH BUILDING PERMITS WE KNOW THAT ONCE BUILDING PERMITS ARE ISSUED, THE NEXT YEAR WE'LL HAVE A SPIKE IN INSPECTION FEES SO WE LOOK AT THOSE KIND OF THINGS.
WE REALLY LOOK AT THE DETAILS BEFORE WE COME UP WITH THE ESTIMATES.
>> SO WE'RE NOT REALLY $4 MILLION UPSIDE DOWN? >> NO.
AND I CAN TELL YOU HONESTLY EVERY YEAR SINCE I'VE BEEN HERE, AND I'VE BEEN HERE SINCE 2013.
I CAME JULY 1, 2013, AND WE'VE ALWAYS PLANNED ON USING THE BALANCE AND VERY RARELY DO, AND I HAVE STATISTICS ON ALL OF THAT THAT I COULD SHOW YOU, BUT YOU'LL SEE WHEN WE GO THROUGH THE BUDGET PROCESS, YOU'LL SEE WHAT WE PLANNED ON USING, AND WE'RE GOING TO AMEND THIS DURING THE BUDGET PROCESS AS WELL SO WE'LL HOPEFULLY BRING THE REVENUES UP, BECAUSE I'M VERY -- I DON'T LIKE TO BE THAT PERSON WHO SAYS, GUESS, WHAT, YOU HAVE TO STOP SPENDING BECAUSE REVENUES ARE COMING IN LIKE PROJECTED. SO I PROJECTOR CONSERVATIVELY ON THE REVENUES. I WOULD RATHER WAIT TO MID-YEAR AND SAY WE HAVE SO MUCH MONEY NOW AND LOOK WHAT WE CAN DO. . I DON'T WANT TO BE THE ONE THAT SAYS STOP SPENDING. WE HAD TO DO THAT WITH THE COVID STUFF AND I DON'T WANT TO EVER DO THAT AGAIN. SO WE'RE VERY, VERY CAUTIOUS ON THE REVENUE ESTIMATES AND PROBABLY IT'S BETTER THAT WE ARE AND SO TYPICALLY DURING THE BUDGET PROCESS I'M INCREASING THEM WHEN WE COME BEFORE YOU. THEY'LL BE INCREASES IN REVENUES MOST LIKELY AND I DO SEE THAT.
I THINK OUR SALES TAX ABSOLUTELY IS GOING TO BE INCREASED BECAUSE WE'RE RUNNING AT ABOUT A 5 PERCENT INCREASE OVER LAST YEAR AND I DIDN'T THINK WE WOULD HAVE THAT HIGH.
SO, YEAH, AND I REPORT ON THESE EVERY MONTH AT THE FINANCE COMMITTEE AND I ALSO EMAIL ALL OF YOU THAT REPORT WITH A WRITTEN NARRATIVE ABOUT THE REPORT AS WELL.
>> THANK YOU. >> YOU'RE WELCOME. >> I HAVE A QUESTION.
>> I'VE GOT SOMEBODY IN FRONT OF YOU COUNCILPERSON SMITH AND THEN I'LL COME BACK TO YOU.
COUNCILPERSON BUTLER, YOU'RE RECOGNIZED. >> THANK YOU, MAYOR. SO WHERE IS OUR ROLL-OVER MONEY? DOES THAT MAKE SENSE? LIKE THE MONEY THAT WOULD HAVE
BEEN LEFT OVER FROM LAST YEAR, WHERE DOES THAT SHOW UP ON HERE? >> WELL, SO IT DOESN'T ROLL OVER BECAUSE IT EXPIRES ON JUNE 30 SO MONEY DOESN'T ROLL OVER. IT GOES INTO OUR FUND BALANCE AND YOU SEE ON THE ORDINANCE, IT'S NOT HERE ON THE SCREEN BUT WHEN WE DO THE BUDGET ORDINANCE WHICH I THINK I HAVE ONE I CAN SHOW YOU AND I THINK WE COULD PUT IT UP ON THE SCREEN.
DO YOU KNOW HOW TO USE THE SCREEN IN. >> WE TYPICALLY PARK IT IN THE FUND BALANCE INSTEAD OF A CASH ACCOUNT. WE JUST PARK IT IN THE FUND BALANCE ACCOUNT KNOWING WE'LL COME BACK TO IT AFTER WE'VE RESERVED THE 20 PERCENT, MINIMUM
[01:05:22]
20 PERCENT. >> WHEN WE GET IT UP TO SHOW YOU -- SO A PART OF WHY WE'RE GOING TO AMEND THE BUDGET, THIS YEAR'S BUDGET WILL BE AMENDED AT THE SAME TIME WHERE YOU'RE APPROVING A NEW BUDGET FOR NEXT YEAR AND PART OF THAT IS I WANT TO FINE TUNE HOW MUCH MONEY WE HAVE BEFORE WE ASK FOR MORE MONEY. WE'LL INCREASE OUR REVENUES IF IT MEANS THAT WE SHOULD AND DECREASE EXPENDITURES IF FOR SOME REASON WE DON'T THINK WE'LL SPEND THAT. WE DO THAT IN THE BUDGET AMENDMENT PROCESS.
THAT'S WHERE IT HAPPENS. IF YOU LOOK AT THAT, THE BOTTOM RIGHT SIDE, THE RIGHT-HAND COLUMN IS THE CURRENT BUDGET '21. THE BEGINNING FUND BALANCE AND I THINK IT'S 26 MILLION AND CHANGE. THAT'S WHERE THE YEAR BEFORE ANY MONEY THAT WAS EXCESS, IF YOU WANT TO CALL IT THAT, IT WENT INTO THE FUND BALANCE SO THAT'S WHERE IT IS. WHATEVER DIDN'T GET SPENT THE YEAR BEFORE WHEN IT EXPIRES GOES INTO THAT BEGINNING FUND BALANCE AMOUNT. DOES THAT HELP?
>> THANK YOU. >> YOU'RE WELCOME. >> THANK YOU.
COUNCILPERSON REDD, YOU'RE RECOGNIZED. >> THANK YOU, MAYOR.
HOW MUCH DID WE HAVE THAT WENT OVER FROM LAST YEAR THEN, THAT ROLLED OVER?
>> I'M SORRY, COUNCILPERSON SMITH I'LL GET TO YOU NEXT. I APOLOGIZE.
I FORGOT TO LOOK AT MY LIST. >> OR DID WE HAVE ANY THAT ROLLED OVER?
>> WE DID. >> OKAY. >> LAST YEAR WE PLANNED ON USING OVER $5 MILLION OF FUND BALANCE AND WE DIDN'T. WE USED JUST OVER -- AND WE USED JUST OVER THREE-POINT SOMETHING. I CAN'T SEE THE NUMBER HERE. THERE WAS SOME LEFT OVER BUT NOT MUCH BECAUSE WE USED FUND BALANCE LAST YEAR. HONESTLY, THE REASON WE HAD A REVENUE ISSUE LAST YEAR WAS THE STATE, SINCE COVID HAPPENED, THEY CUT OUR FUNDING.
THEY REDUCED THE STATE SHARED DOLLARS BY SEVERAL MILLION DOLLARS OVERNIGHT.
>> BUT WE DID HAVE MONEY OVER [INAUDIBLE] WE DIDN'T SPEND IT ALL?
>> NO. >> I THINK YOU CALLED THE SUNSHINE BALLOTS OR THE RAINY DAY BALLOTS. IS THAT THE SAME THINGS, THOSE TWO?
>> RAINY DAY FUNDS. >> IT'S A FUND BALANCE. WE USED SOME OF THE FUND BALANCE LAST YEAR. IT WAS LIKE 3.9 BECAUSE THE REVENUES CAME IN VERY, VERY LOW BECAUSE IN MARCH -- SO WE HAD THREE MONTHS LEFT OF THE YEAR AND WE GOT A SIGNIFICANT CUT.
>> LET ME ASK IT THIS WAY. LAST YEAR, DID WE SPEND MORE MONEY THAN WE TOOK IN NO MATTER
WHERE IT CAME FROM? >> YES. >> OKAY. GOOD.
THE BUDGET -- THE QUESTION WAS ASKED I THINK BY COUNCILPERSON ALLEN, AND I THOUGHT THIS WAS A GREAT QUESTION. THE REVENUES THAT YOU'RE PROJECTING ON THIS BUDGET WHICH IS AN ESTIMATE. IT'S NOT WRITTEN IN STONE. THE REVENUES WILL BE BUT WE ARE SPENDING 112 MILLION BUT I THINK YOU SAID IT WAS BECAUSE OF THE SUNSHINE BALLOTS OR SOMETHING, THAT THIS IS NOT A DEFICIT. I DON'T UNDERSTAND HOW THE RAINY DAY NUMBERED -- THAT HAS TO BE MAINTAINED AT 20 PERCENT. THAT REALLY CAN'T BE COUNTED AS MAKING UP FOR THE DIFFERENCE.
>> ANYTHING OVER 20 PERCENT. SO THE WAY THE REVENUES, WHAT WE HAVE AVAILABLE TO SPEND, AND THIS IS GFOA BEST PRACTICES, YOU TAKE YOUR FUND BALANCE AND THAT'S THE RAINY DAY BALANCE, FUND BALANCE, SAME THING, AND YOU CALCULATE 20 PERCENT. YOU TAKE THAT AND DON'T TOUCH
THAT 20 PERCENT. >> YOU ARE COUNTING OVER THE 20 PERCENT WOULD MAKE UP THE
DIFFERENCE. >> YES. ABSOLUTELY.
[01:10:03]
TYPICALLY BETWEEN 25 AND 30 PERCENT AT THE END OF THE YEAR.>> BUT OPERATING COSTS AND REVENUE, WE SHOW A LOSS BUT THAT WOULD BE MADE UP, IF IT TURNS
OUT TO BE TRUE, BY THE AMOUNT UP AND ABOVE THE 20 PERCENT? >> CORRECT.
LIKE I SUIDS SAID, I HAVE A WHOLE BUNCH OF STATISTICS I COULD SHOW YOU ALL.
I DIDN'T BRING THEM WITH ME TONIGHT BUT YOU'LL SEE THE HISTORY.
WE VERY RARELY USE THAT EXCESS FUNDS. .
>> THANK YOU. COUNCILPERSON SMITH, I DO APOLOGIZE.
YOU'RE RECOGNIZED. >> THAT'S OKAY, MAYOR. YOU CAN GO ON.
I'LL [INAUDIBLE]. >> COUNCILPERSON ALLEN, YOU'RE RECOGNIZED.
>> I UNDERSTOOD IT AND THEN I GOT CONFUSED WITH THAT PAPER UP THERE.
I'D HAVE TO UNDERSTAND IT AGAIN. FROM THIS 108, THAT'S NOT WHERE THE 20 PERCENT COMES FROM?
>> NO. >> SO BEFORE WE EVER GET TO THE 108, WE HAVE 20 PERCENT SET OFF TO THE SIDE. ALL RIGHT. ONCE THIS IS SPENT -- LIKE RIGHT NOW IT LOOKS LIKE WE'RE UPSIDE DOWN, RIGHT. HOWEVER THERE'S OTHER REVENUES
COMING IN, THINGS LIKE THAT, AND WE PROBABLY AREN'T UPSIDE DOWN? >> CORRECT.
>> SO IF WE HAVE MORE REVENUE THAN EXPENDITURES, THAT ALL GOES INTO THIS ACCOUNT, RIGHT?
>> YES. >> AND THEN FROM THERE, THEN WE PUT IT BACK TOGETHER AGAIN AND
THEN PULL THAT 20 PERCENT OUT AGAIN? >> YES.
>> YOU GOT IT. >> I'M NOT CONFUSED ANYMORE. >> WE RECORDED THAT AND WE'LL REPLAY IT. THANK YOU. COUNCILPERSON LITTLE, YOU'RE
RECOGNIZED. >> I KNOW ABOUT THE DIFFERENCE BETWEEN GENERAL FUNDS AND THE ENTERPRISE FUNDS. ONE QUESTION I HAD ABOUT THE ENTERPRISE FUND.
I SEE WATER AND SEWER IS A BIG REVENUE. CAN THAT BE SHARED BETWEEN THE
ENTERPRISES? >> NO. THEY'RE SUPPOSED TO STAY WITHIN
THAT FUND. >> OKAY. >> THANK YOU, COUNCILPERSON
LITTLE. PROCEED, PLEASE. >> WHERE WAS I? LET'S SEE. WE GOT THROUGH THAT. I THINK WE'RE ON TO CAPITAL PROJECTS. SO CAPITAL PROJECTS IS ANOTHER MAJOR FUND OF THE CITY.
THIS IS FOR THOSE HUGE THINGS LIKE NEW ROADS AND THEY'RE GOING TO SPEND MULTIPLE YEARS SO THE MONEY, ONCE IT'S THERE, IT'S THERE, AND IT FLOWS OVER YEARS. THE APPROPRIATIONS EXPIRED JUNE 30 AND YOU'LL JUST GIVE US MORE NEXT YEAR BUT YOU'RE NOT GETTING NEW MONEY.
THE MONEY THAT'S IN THERE JUST STAYS THERE THE ENTIRE LIFE OF THAT PROJECT UNTIL IT'S COMPLETED UNLESS YOU MAKE A CHANGE. ONLY COUNCIL CAN MAKE CHANGES TO CAPITAL PROJECTS. WITH THE BUDGET PROCESS, WHEN WE DO THE FIVE-YEAR CATCH TELL IMPROVEMENT PROGRAM, WE ACTUALLY WORK IN CONNECTION WITH THE COUNTY AND THE RPC.
WE ALL KIND OF WORK TOGETHER ON THIS FIVE-YEAR IMPROVEMENT PROGRAM AND BECAUSE WE NEED TO KNOW WHAT EVERYBODY ELSE IS DOING, RIGHT. WE SUBMIT EVERYTHING TO RPC AFTER THE MAYOR HAS REVIEWED IT AND THE DEPARTMENT HAS AND WE'VE TRIED TO FIGURE OUT HOW WE'RE GOING TO FUND ALL OF THIS AND WHAT WHAT ARE NEEDS ARE IN THE CURRENT YEAR AND THEN WE SUBMIT IT WILL TO THE R C AND THEN THEIR BOARD REVIEWS IT IN DETAIL AND REVIEW THE COUNTY TOO AND PUT THEM TOGETHER AND THEN THEY'LL BRING THE CITY, OUR FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM FOR YOUR ACCEPTANCE. WE'RE NOT NECESSARILY APPROVING IT YET.
AT THIS POINT YOU'RE JUST ACCEPTING THAT THIS IS ONE WE PLAN.
YOU CAN DO IT FOR ONLY ONE YEAR. THE OTHER FOUR YEARS ARE REALLY JUST OUT THERE BUT WE CAN'T APPROVER THOSE. IT GIVES YOU AN IDEA AND YOU'LL SEE ON EACH CAPITAL PROJECT YOU'RE GOING TO HAVE A FORM THAT EXPLAINS WHAT THE PROJECT IS AND PROJECT WHAT WE THINK THE COST IS GOING TO BE AND HOW WE THINK WE'LL SPEND THE MONEY. SO FOR INSTANCE, THE POLICE PRECINCT, THE FIRST YEAR WE'LL PROBABLY BUDGET MONEY FOR THE DESIGN.
THE SECOND YEAR MIGHT BE LAND ACQUISITION AND THEN MOST OF THE CONSTRUCTION WILL HAPPEN IN THE THIRD, SO YOU'LL SEE THE MONEY LAID OUT THAT WAY TOO. ALL OF THEM AGAIN COME TO YOU.
SO CURRENTLY WE HAVE 53 OPEN CAPITAL PROJECTS. THESE ARE REPORTED AT THE FINANCE COMMITTEE AND EMAILED TO ALL OF YOU AS WELL. THE MAJORITY OF THEM ARE WITH THE STREET DEPARTMENT. WE HAVE 20 OPEN CAPITAL PROJECTS WITH THEM, TOTALING $72.5 MILLION. PARKS AND REC IS THE NEXT ONE DOWN WITH 17 PROJECTS.
THEY HAVE $30.7 MILLION. THE FUNDS THAT I'M TELL UPPING, THE TOTAL FUNDS, THIS IS THE MAXIMUM THEY CAN SPEND ON THE CAPITAL PROJECTS. IT DOESN'T MEAN ALL OF IT WILL
[01:15:05]
BE SPENT. WHEN WE ISSUE DEBT, I'M ISSUING DEBT FOR THIS BUT I'M ONLY ISSUING IT WHEN I KNOW WHAT WE NEED. JUST BECAUSE WE SAY THAT THE PROJECT IS GOING TO BE 20 MILLION DOESN'T MEAN I'M GOING TO ISSUE 20 MILLION WORTH OF DEBT. IF IT'S 15, I'LL ONLY ISSUE 15. THE WAY WE MANAGE THAT IS EVERY YEAR AFTER THE BUDGET IS APPROVED I BRING TO YOU A RESOLUTION DRAFTED BY BOND COUNCIL, AND IT [INAUDIBLE] I HAVE THE AUTHORITY TO REIMBURSE MYSELF WITH THE DEBT.THIS WAY WE DON'T LOSE ANY OF THAT MONEY AND WE'RE NOT PAYING INTEREST ON MONEY THAT WE HAVEN'T SPENT YET. $136.2 MILLION WE HAVE CURRENTLY IN THE CAPITAL PROJECTS.
THAT COULD BE SPENT. SOME IS ALREADY SPENT. A NOTE, WHEN YOU'RE LOOKING AT THE CAPITAL PROJECTS WHEN WE GO OVER THEM AT THE FINANCE DEPARTMENT, THE FIRST TWO DIGITS IN THE IN YOU FOR THE CAPITAL PROJECT IS THE YEAR THE PROJECT WAS APPROVED.
IF IT STARTS WITH A '13, IT WAS APPROVED IN FISCAL YEAR '13, AND IF IT'S A 20, IT'S '20 FISCAL YEAR. IT'S GIVES YOU AN IDEA HOW LONG THE PROJECTS ARE GOING.
THIS IS WHERE I WAS GOING TO TELL YOU ABOUT THE INFORMATION I GIVE TO THE FINANCE COMMITTEE.
I'M ALWAYS OPEN TO QUESTIONS IF YOU HAVE ANY WITH THAT. I MENTIONED THE COMPREHENSIVE ANNUAL REPORT THAT'S AUDITED. THIS IS THE SIXTH YEAR IN THE ROW THAT THE CITY RECEIVED THE AWARD OF EXCELLENCE IN FINANCIAL REPORTING WHICH IS A BIG DEAL. THAT MEANS THAT WE'RE DOING THINGS RIGHT AND WE'RE MAKING THAT COFFER LOOKS READIABLE. THERE'S A WEALTH OF INFORMATION WHERE I WRITE IT AND IT TALKS ABOUT THE ECONOMY FOR THE LOCAL AREA AND TALKS ABOUT THE MAY INJURY CHALLENGES WE HAD AND TALKS ABOUT OUR MAJOR SUCCESSES TOO.
THERE'S A LOT OF GOOD INFORMATION IN THERE. >> COUNCILPERSON REYNOLDS,
YOU'RE RECOGNIZED. >> THE CATCH TELL PROJECT SUMMARY, WHEN YOU SAY OVER THE NEXT FIVE YEARS IT'S $36 MILLION, AND AM I APPROVING THIS YEAR THE $36 MILLION IN THE BUDGET AND WHERE DOES THAT MONEY SIT THROUGH THE PROJECT? I'M SORRY.
I DON'T UNDERSTAND. >> I THINK I GLOSSED OVER THAT. I'M SORRY.
WHEN THE FIVE-YEAR IMPROVEMENT PROGRAM GOES TO YOU TO JUST LOOK AT.
YOU'RE NOT APPROVING ANYTHING AT THAT POINT. THAT'S A STARTING POINT FOR OUR BUDGET. THE MAYOR LOOKS AT THE FIRST YEARS THAT'S IN THAT FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM AND LOOKS AT IT AND DECIDES WHAT HE THINKS IS REALLY IMPORTANT TO DO NOW AND WHAT WE CAN AFFORD TO DO RIGHT NOW. WHEN YOU'RE APPROVING IT IS IN THE BUDGET PROCESS. IN THE ORDINANCE THAT I SHOWED YOU EARLIER, THERE'LL BE A PAGE IN HERE THAT ACTUALLY LISTS THE CAPITAL PROJECTS AND WHAT FUNDING THEY'RE ASKING.
YOU'LL SEE EXACTLY HOW MUCH MONEY THAT THEY'RE ASKING YOU TO APPROVE.
THIS IS WHEN YOUR APPROVING IT, THE BUDGET PROCESS. >> EACH YEAR DO WE DO THE INCREMENTS? OR WRITE IT DOWN AND YOU TAKE THE LOAN LOB OUT AS NEEDED?
>> IT KIND OF DEPENDS. FOR INSTANCE, FIRE TRUCK, WE DO ISSUE DEBT FOR SOME OF OUR FIRE TRUCKS. A 100-FOOT LADDER TRUCKS IS 1.3 OR $1.5 MILLION AND YOU ORDER IT TODAY AND IT MIGHT NOT BE IN FOR 18 MONTHS. WE PUT THAT IN CAPITAL BECAUSE OF THAT LENGTH OF TIME. WHEN YOU APPROVE THAT IT'S ONE AND DONE, GIVEN ALL THE MEAN ONE TIME BECAUSE WE HAVE TO BE ABLE TO ISSUE A PURCHASE ORDER AND WE CAN ONLY ISSUE A PURCHASE ORDER IF FUNDS ARE AVAILABLE. IF THEY'RE NOT AVAILABLE WE'RE NOT ALLOWED TO SPEND IT SO THAT KIND OF THING WE DO ONE AND DONE. A STREET PROJECT, LIKE I THINK
IT'S THE TRENTON ROAD AND -- ONE OF THE BIG ONES WE'RE DOING. >> WHITFIELD AND NEEDMORE, WE INCREMENTALLY ADD MONEY TO THAT PROJECT AS THEY KNOW THEY'LL NEED IT BECAUSE IF IT'S A $30 MILLION PROJECT WHICH WHEN YOU GET INTO THE STREET PROJECTS WITH THE MAYOR YOU'RE GOING TO SEE HOW COSTLY THEY ARE BECAUSE WE HAVE TO DO IT RIGHT AWAY WHICH IS PURCHASING THE LAND AND WE HAVE TO DO THE DESIGN AND THEN WE HAVE TO START ACTUALLY HAVING THE ROAD CONSTRUCTED AND PAVED AND IT'S A LONG PROCESS. WE WOULDN'T WANT TO COMMIT $30 MILLION IN ONE YEAR SO WE'LL
[01:20:02]
GIVE IT A BIT EACH YEAR UNTIL AS THEY NEED IT. >> ALL RIGHT.
COUNCILPERSON ALLEN, YOU'RE RECOGNIZED. >> SO THIS IS PROBABLY KIND OF A SPECIFIC QUESTION BUT -- I DON'T THINK IT HAS A LOT TO DO WITH THE BIG BUDGET BUT A YOUNG MAN CAME TO ME AT HIS SCHOOL. THEY WANT TO WORK ON A PROJECT FOR THEIR ACADEMY AND WHAT THEY WANTER TO DO IS THEY WANT TO -- WHAT THEY WANT TO DO IS MAKE A PARK HANDICAP ACCESSIBLE.
WE TALKED TO PARKS AND REC AND EVERYTHING LIKE THAT. .
IT'S NOT THAT MUCH MONEY BUT HOW WOULD SOMETHING LIKE THAT BE PUT INTO THE BUDGET TO HELP WITH THAT PROJECT? THEY'RE DOING SOME FUNDRAISING BUT, YOU KNOW, MAKING SOMETHING HANDICAP ACCESSIBLE IS A LITTLE BIT MORE EXPENSIVE THAN WHAT THE HIGH SCHOOL TEAM COULD RAISE.
DO YOU SEE WHAT I'M SAYING? >> YES. TYPICALLY WHAT HAPPENS WITH THOSE IS THEY WORK WITH THE PARKS DIRECTOR AND THEN DEPENDING ON THE AMOUNT OF MONEY THAT IT'S OF IT'S GOING TO BE I WORK WITH THE PARKS DIRECTER AND MAYOR TO FIGURE OUT SHOULD IT JUST BE CAPITAL OUTLAY BECAUSE IT'S NOT THAT EXPENSIVE OR SPAN QUITE A FEW YEARS.
EITHER WAY, THAT'S THE STARTING POINT. WE'VE ALSO DONE PROJECTS WHERE WE PARTNERED WITH THE ROTARY, THE SPLASH PANS, AND WHEN WE'RE DOING SOMETHING LIKE THAT WHERE THEY'RE DOING FUNDRAISING WE TYPICALLY DO THAT AS A CAPITAL PROJECT BECAUSE WE KNOW IT'S GOING TO GO ON LONGER AND THEY PROVIDE US SOME OF THE FUNDS TO PAY FOR THE PROJECT BUT WE STILL
MANAGE THE PROJECT. >> SOMETIMES WITHIN A DEPARTMENT'S BUDGET, LIKES PARKS AND REC, THEY'LL HAVE MAINTENANCE FUNDING AVAILABLE DEPENDING ON THE SIDE OF THE PROJECT THAT THEY CAN ALLOCATE FOR A PARTICULAR PROJECT AND I THINK JENNIFER MENTIONED SOMETHING LIKE THAT WITH ME SO SHE'LL BE GETTING WITH YOU. AWESOME.
THANK YOU. >> I'M DONE. >> ANYBODY ELSE HAVE ANY QUESTIONS? I WANT TO THANK YOU, MS. MATTA, FOR PROVIDING AN EXPERT ANALYSIS OF THE BUDGET. WE LOOK FORWARD TO THE PROCESS THAT'S COMING UP.
I'LL TELL EVERYBODY TO STAND BY AND GET READY TO RECEIVE THEIR BUDGET BOOKS AND SCHEDULES AND
THAT SORT OF THING. >> THERE'S MY CONTACT INFORMATION.
>> THERE'S THE CONTRACT INFORMATION THAT'S IN THE PACKET OF INFORMATION THAT YOU HAVE ON YOUR IPADS AND THIS COMPLETES THE PURPOSE OF THE CALLED SPECIAL COUNCIL SESSION.
I'LL ENTERTAIN A MOTION TO ADJOURN. >> WE HAVE A
* This transcript was compiled from uncorrected Closed Captioning.