[1) Call to Order]
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>> MAY 172021 SPECIAL SESSION OF THE CLARKSVILLE CITY COUNCIL IS CALLED TO ORDER.
COUNCIL PERSON LIL WILL SERVE AS OUR CHAPLAIN OF THE DAY. PLEASE STAND IF YOU WISH.
COUNCIL MEMBER LITTLE. >> THANK YOU.
>> LORD, WE THANK YOU FOR THE BLESSINGS YOU HAVE BESTOWED POP US AND WE THANK YOU FOR OPPORTUNITY TO COME TOGETHER AND REPRESENT A COMMUNITY THAT YOU HAVE BLESSED TO MEET A LOT OF PEOPLES' EXPECTATIONS, CONTINUE TO GROW IN A MARVELOUS WAY.
WE THANK YOU FOR THIS TALENTED GROUP OF PEOPLE ALL WORKING TOGETHER TO MAKE CLARKVILLE A BETTER PLACE TO LIVE. AND EVERYTHING WE PRAY,
>> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND
JUSTICE FOR ALL. >> ALL MEMBERS REGISTER YOUR ATTENDANCE PLEASE. MADAM CLERK, TAKE THE ROLE.
>> ALL MEMBERS ARE PRESENT. >> THANK YOU, MADAM CLERK, GOOD AFTERNOON, EVERYONE. THE PURPOSE EVER TODAY'S SESSION SPECIAL IT IN TWO PARTS.
PART ONE WILL REVISIT THE TRANSPORTATION 2020 PLUS TRAN WE FIRST REVIEWED IN FEBRUARY OF THIS YEAR.
I SHARED WITH YOU WE WOULD TAKE TIME FOR YOU TO ASH SORB THE PLAN AND GIVE ME TIME TO SHARE THE PLAN WITH THE COMMUNITY. I'VE SPOKEN TO VARIOUS GROUPS AND USED AVAILABLE MEDIA TO ASK CITIZENS TO PROVIDE THEIR INPUT AND FEEDBACK.
THEY'VE DONE THAT. WE'VE BROKEN IT DOWN TO WORDS AND WE'LL SHARE THAT WITH YOU.
WE'LL ALSO GO THROUGH A PRESENTATION IN A MOMENT THAT WILL GIVE YOU A REVISED LIST OF TIER ONE PROJECT, A TIME WILLPOWER AND OUR PROPOSAL TO PAY FOR THE PLAN. YOU WILL BE GIVEN COPIES OF THE PRESENTATION AND WE'LL POST IT ON THE CITY'S WEBSITE AND VARIOUS SOCIAL MEDIA ACCOUNTS AS WELL.
WE'LL PRESENT A PART OF THE SERIES A BUDGET RELATED PROPOSALS, RESOLUTION LATER NEXT MONTH ADOPTING THE TRANSPORTATION PLAN IN JUNE. PART 2 TONIGHT IS A HIGH LEVEL OVERVIEW, A PRESENTATION OF THE PROPOSED BUDGET SENT TO YOU ON FRIDAY.
LORI, OUR CHIEF FINANCIAL OFFICER AND I WILL GIVE YOU INFORMATION THAT WILL BE USEFUL AS WE HAVE COMMITTEE LEVEL REVIEWS OF THE BUDGET THROUGHOUT THE WEEK.
THOSE COMMITTEE MEETINGS ARE DESIGNED FOR YOU TO KNOW WHAT'S IN EACH DEPARTMENT'S BUDGET AND TO ASK QUESTIONS OF OUR DEPARTMENT HEADS. NO VOTES ARE TAKEN.
BUT IT IS PROVEN TO BE A VALUABLE REVIEW OF THE BUDGET. YOU WILL GET AN OVERVIEW TONIGHT. REVIEW THE BUDGETS THIS WEEK AND THERE WILL BE AMPLE TIME AND OPPORTUNITY TO DO FOLLOW-UP WITH DEPARTMENT HEADS AND OUR CHIEF FINANCIAL OFFICER PRIOR TO THE FIRST READING IN JUNE PRIOR TO OUR WORKSHOP ON JUNE 15.
WHAT I WILL DO IS GO TO THE WELL AND START WITH OUR TRANSPORTATION 2020 PLAN AND GIVE YOU AN UPDATE.
[5) OVERVIEW of FY22 Budget and Transportation 2020+ Plan]
TRANSPORTATION 2020, I'LL INVITE YOU TO LOOK AT THE SCREEN. LET'S BEGIN BY TALKING ABOUT OUR INVESTMENT INTO CLARKVILLE'S FUTURE.I'M GOING TO RIP THE BAND-AID OFF AND TELL YOU WE'RE PROPOSING TO PAY FOR THE PLAN BY PROPOSING A 20 CENT PROPERTY TAX INCREASE. THAT WILL PROVIDE US ROUGHLY $7 MILLION, 6. 9 TO BE EXACT TO ADDRESS, BEGIN TO ADDRESS THE CRITICAL INFRASTRUCTURE NEEDS OF OUR CITY. THAT WILL YIELD APPROXIMATELY 167 MILLION IN BORROWING POWER TO INVEST IN THOSE INFRASTRUCTURE PROJECTS WE'VE IDENTIFIED IN TIER ONE. I'VE OFTEN HEARD WHY WOULD YOU ASK US TO VOTE. MANY OF YOU ARE IN YOUR FIRST YEAR OF YOUR FIRST TERM.
I LIKE TO, I'LL RECOUNT A LITTLE STORY.
WHEN I WAS IN MY FIRST YEAR OF MY FIRST TERM, IN THE LEGISLATURE, I WAS FACED WITH THE OPPORTUNITY TO VOTE ON A TAX INCREASE. THE GOVERNOR HAD PROPOSED A TAX INCREASE ON TOBACCO AND HE, WE WOULD USE THE FUNDS FOR EDUCATION. AFTER LONG AND HARD
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DELIBERATION AND DEBATE ABOUT THE TAX INCREASE, I HAD TWO SIMPLE QUESTIONS. WHAT IS MY DISTRICT GOING TO GET OUT OF IT? HOW MUCH MONEY CAN WE REALIZE FROM IT? OUR SCHOOL SYSTEM REALIZED APPROXIMATELY $36 MILLION IN NEW FUNDING FROM THE STATVOLT OF THAT TAX INCREASE. SO THAT IS WHY I WANT TO PRESENT THIS TAX INCREASE TO YOU TODAY.SO THAT YOU WILL KNOW WHAT YOUR WARD, WHAT OUR CITY IS GOING TO YIELD AS A RESULT OF THE TAX INCREASE.
LET'S LOOK AT THE NUMBERS. WE'VE OFTEN HEARD OURSELVES COMPARED TO CHATTING INTO A, KNOXVILLE.
I'VE OFTEN HEARD FROM PEOPLE AROUND COMMUNITY, KNOX VILLE HAS THIS AND CHATTANOOGA DOES THAT, IF YOU GIVE US THEIR PROPERTY TAX RATE WE CAN DO MUCH OF THE SAME THING. YOU CAN SEE WE'RE FAR BEHIND TWO OF THE THREE. WE ARE A HAIR BEHIND MURFREESBORO BUT WITH THIS INCREASE WE WOULD STILL BE BEHIND THOSE 3 CITIES IN OUR STATE.
WHEN WE TALKED ABOUT TRANSPORTATION 2020, WE LISTENED TO WHAT NOT ONLY WHAT YOU HAD TO SAY IN PROVIDING FEEDBACK BUT WE ALSO SENT OUT A SURVEY AS WELL AS HEARD FROM DOZENS OF CITIZENS ON-LINE AND 64% OF THOSE SAID THEY SUPPORT THE PLAN.
NOW IT HAS TO BE SAID THAT WE DID NOT PROPOSE HOW WE WOULD PAY FOR IT AT THAT POINT.
SO I WOULD IMAGINE AS WE GO THROUGH THIS DEBATE, OVER THE NEXT FEW WEEKS, AND TALK ABOUT FUNDING OF THIS PLAN, WE MIGHT GET A LITTLE DIFFERENT STORY THAT I SUSPECT THEY WILL SAY THE NEED IS STILL THE SAME.
SO WHAT WE'VE DONE IS MOVED THREE PROJECTS UP FROM THE TIER TWO AND THEORY 3 INTO TIER 1.
BASED ON GROWTH THAT IS ALREADY HAPPENING IN OUR CITY AS WELL AS ANTICIPATED GROWTH.
THOSE PROJECTS AS YOU CAN SEE ARE BEFORE YOU.
YOU MAY ASK WHY IS HIGHWAY 4813 SIDEWALKS AND CROSSWALKS THERE. AS YOU KNOW THERE IS SIGNIFICANT ROAD WORK GOING ON BY THE TENNESSEE DEPARTMENT OF TRANSPORTATION.
THERE IS A PROPOSE COMMERCIAL DEVELOPMENT TO TAKE PLACE RIGHT ACROSS THE ROAD FROM THE MARINA AND LIBERTY PARK AND THAT WILL NECESSITATE MOVING A PEDESTRIAN TRAFFIC TO AND THROUGH AND AROUND THE AREAS THERE. WE DID MOVE THE CUNNINGHAM BRIDGE REPLACEMENT PROJECT DOWN A TIER BECAUSE WE'RE ANTICIPATING THERE NEEDS TO BE MORE WORK DONE WITH THE STATE AND COUNTY ON THAT PROJECT.
SO HERE IS THE TIER 1 REVISED NEWSPAPERS.
AS YOU CAN SEE -- NUMBERS, AS YOU CAN SEE ROUGHLY $212 MILLION IN TOTAL COST, 41 MILLION OF THAT HAS BEEN AUTHORIZED FOR SOME OF THE PROJECTS IN TIER ONE SUCH AS ROSS VIEW ROAD, WHITFIELD, SOME OF THE RIGHT OF WAY ACQUISITION FOR TYLER TOWN AND OAK LAND ROAD EXPANSION.
THE RELOCATED TRANSIT CENTER PROJECT WHICH WE HOPE TO DO IN THE NEXT FEW YEARS THAT $10 MILLION WILL BE FUNDED WITH FEDERAL MONEY. THAT WAY IT'S NOT INCLUDED IN THIS BORROWING THE INITIAL BORROWING.
THE NEXT CHART YOU SEE IS THE TIER 1 REVISED LIST.
YOU WILL NOTICE THERE'S A PHRASE UNDER SIDEWALKS AND MULTIUSE PATHS THAT SAYS GRANT ELIGIBLE.
WE'VE DETERMINED ALL OF THE PROJECTS WILL BE GRANT ELIGIBLE BE IT FEDERAL OR STATE, AND IT'S JUST A MATTER WAITING FOR THE RIGHT SPOT TO DO THAT.
BUT WE'LL NOT WAIT TOO LONG BUT WE'RE POSITIONING OURSELVES TO BE IN THE RIGHT SPOT AT THE RIGHT TIME BY ADOPTING A PLAN. SO I'VE ASKED LORI MANNA, OUR C. F. O. TO LEAD US THROUGH THE NEXT COUPLE OF SLIDES ON DEBT CAPACITY AND BORROWING SCHEDULE FOR THESE PLANS. SHE WILL LEAD US THROUGH ABOUT THREE SLIDES THEN I'LL COME BACK AND COMPLETE THE PRESENTATION FOR YOU THIS AFTERNOON.
>> THANK YOU IS UP THERE IS A SCREEN SHOT OF THE GENERAL GOVERNMENT'S DEBT. IT'S THE GENERAL OBLIGATION BONDS OF THE CITY THROUGH JUNE 30, 2020.
SO THAT IS AS OF OUR LAST AUDIT.
OUR BONDS TOTALED $106. 7 MILLION.
FOR THE FIRST YAL YEAR WE PAID $9 MILLION.
SO OUR YOUTH STANDING DEBT NOR JUNE 30, 20212021 IS 97.7 MILLION. SO BACK ON THE OTHER SLIDE STILL, ONE OF THE THINGS I WANTED TO POINT OUT LAST SUMMER WE REFUNDED $51 MILLION, HIGHER INTEREST RATE DEBT. WE WENT FROM 3 TO 5% INTEREST RATES DOWN TO FIXED RATES OF 1.72 AND 1.81%.
5 51 MILLION BECAME 47 MILLION AND WE HAD A NET
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PRESENT VALUE OF 3.7 MILLION WHICH REALLY MADE A BIG DIFFERENCE GOING INTO OUR BUDGET.ANOTHER THING TO POINT OUT THERE IS THE 2018 DEBT.
THAT IS A VARIABLE INTEREST RATE DEBT THROUGH THE TENNESSEE MUNICIPALITY BOND FUND.
THAT ALLOWS US TO DRAW DOWN DEBT AS WE NEED IT.
UP TO $18 MILLION AND WE STILL HAVE ABOUT ANOTHER $8 TO $10 MILLION LEFT TO SPEND ON CAPITAL PROJECTS BEING WORKED ON RIGHT NOW. OKAY.
RICHARD. THIS IS A GRAPHICAL PICTURE OF A CURRENT DEBT. AND THE BARS ARE OUR CURRENT DEBT. THE TRIANGLE OR THE LIGHT BLUE UP IN THE TOP RIGHT CORNER IS OUR NATIONAL DEBT CAPACITY MEANING THAT WHAT WE COULD FILL IN WITH AND STILL BE ABLE TO AFFORD. SO BASICALLY, YOU CAN SEE FROM 2023 ON YOUR DEBT CONTINUES TO DROP OFF.
SO THAT IS WHERE WE'RE LOOKING FOR THE TRAFFIC 2020 PLAN. WE CAN FILL THAT IN.
ON THIS ONE, THIS SHOWS THE FIRST FIVE YEARS OF THE TRAFFIC 2020 PLAN AND THE FINANCIAL NEEDS.
THE NEW TIER 1 COSTS WILL BE JUST OVER $192 MILLION WITH ANTICIPATED FUNDING COMING FROM GRANT POTENTIAL GRANTS OF $22.7 MILLION, FUNDING FROM ONE OF OUR SPECIAL REVENUE FUNDS IS THE $1.6 MILLION AND THAT LEAVES THERE ARE A 1 -- DOLLAR 167 MILLION FOR NEW DEBT.
41.33 31 MILLION, THAT IS UP ON THE BOTTOM RIGHT THERE, THAT IS PRE-AUTHORIZED TEXT. IT HAS BEEN AUTHORIZED BY OTHER COUNCILS THROUGH OTHER BUDGETS FOR CAPITOL PROJECTS ALREADY IN THE PROCESS. WE HAVEN'T ISSUED THE DEBT FOR THEM YET. WITH THIS TAX RATE INCREASE, WHAT WE'RE GOING TO BE ABLE TO DO IS PAY THE EXTRA FUNDS THAT ARE AVAILABLE ARE GOING TO PAY FOR THE BEGINNING OF THESE PROJECTS. BEFORE, UNTIL THE CONSTRUCTION BEGINS. WE HAVE A REQUIREMENT BASICALLY THREE YEARS, YOU HAVE TO SPEND YOUR DEBT FROM THE TIME YOU GET IT. WE SPEND MONEY VERY SLOW ON CAPITAL PROJECTS. AND WE JUST CAN'T GET IT DONE AND THAT THREE YEAR REQUIREMENT EXCLUDES YOUR DESIGN. SO THERE ARE A COUPLE OF EXCEPTIONS WE COULD GO A LITTLE LONGER BUT WE, WHEN WE FIRST APPROVED THIS PROJECT THERE WAS GOING TO BE A LOT OF YEARS OR AT LEAST THE FIRST YEAR, WAS GOING TO BE A LOT OF PLANNING, A LOT OF DESIGNING, A LOT OF RIGHT OF WAY ACCESS.
IT'S GOING TO BE MORE THAN CONSTRUCTION.
SO WE DON'T WANT TO ISSUE THE DEBT IMMEDIATELY BECAUSE WE WOULD THEN HAVE THREE YEARS FROM THE TIME WE ISSUE THE DEBT TO SPEND IT ALL. THIS.
IS A FIVE-YEAR PLAN. SO THAT TAX RATE INCREASE WILL FILL THAT LITTLE WE CALL IT PAY AS YOU GO.
IT'S A LITTLE BIT OF A GAP FROM THE TIME WE APPROVE THE PLAN TO WE'RE GOING TO ISSUE THE DEBT.
THAT'S WHAT'S THAT'S GOING TO FUNDS FOR US.
SO. THAT IS, THAT PART IS CALLED PAY AS YOU GO FINANCING. WE TYPICALLY PRACTICE GENERATIONAL EQUITY WHICH IS WHERE THE PEOPLE WHO ARE USING THE AS BIT ARE THE PEOPLE PAYING FOR IT OTHERWISE YOU WOULD BE SAVING UP THE MONEY AND THE PEOPLE WHO PAID THE TAX ARE NOT THE ONES USING THE ROADS BECAUSE WE'RE SUCH A TRANSIENT COMMUNITY, HALF OF THEM WOULD BE GONE BY NOW. ON THE NEXT ONE.
OKAY. SO THE, LIKE THE MAYOR MENTIONED THE 20 CENT TAX INCREASE PROVIDES APPROXIMATELY $6.9 MILLION. OUR FINANCIAL ADVISOR THROUGH P.F.M.GROUP REVIEWED OUR TRAFFIC PLAN AND HAS AGREE THAT HAD IT FITS WITHIN OUR LONG-TERM DEBT PORTFOLIO. AND INCLUDING THE $41.3 MILLION WE HAVE PREVIOUSLY NOT ISSUED YET, WE WILL LOOK AT ALL FINANCING SOURCES AND POSSIBILITIES TO PROVIDE US THE MOST FLEXIBILITY BEFORE WE ISSUE ANY DEBT.
WE DON'T WANT TO ISSUE THE DEBT TOO SOON BECAUSE WE DON'T WANT TO PAY ON DEBT WHEN WE HAVEN'T USED IT YET PAYING THE INTEREST ON IT. BACK TO YOU, MAYOR.
SO YOU'VE HEARD ABOUT THE DEBT PURCHASE I BELIEVE YOU ARE GOING TO GET SOME MORE INFORMATION ABOUT DEBT AND WHERE WE ARE IN THE BUDGET OVERVIEW IN A FEW MOMENTS, BUT WHEN WE HAD OUR LAST MEETING, OUR FIRST MEETING TO TALK ABOUT THIS, YOU ASKED FOR SOME TIMELINES.
WHEN WE ASK OUR STREET DEPARTMENT TO DO WAS PUT SOME TIMELINES TO THE VARIOUS PROJECTS IN TIER ONE. AND I'M NOT GOING TO GO THROUGH THOSE AND READ THOSE BECAUSE YOU CAN SEE THEM.
THEY'RE ILLUSTRATED IN THE PLAN.
BUT AS LORI MENTIONED IT TAKES US A WHILE TO SPEND MONEY. THE QUESTION I HAVE IS WHY DOES IT TAKE US SO LONG TO SPEND MONEY? I'M GOING TO
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SAY I'M GLAD YOU ASKED BECAUSE I'M GOING TO TELL TELL YOU LIKE PETER WROTE IT.WE'VE TWO PRIVATE UTILITIES CONSTAYLY ON OUR ROAD.
AT&T AND CHARTER COMMUNICATIONS.
THEY'RE CONSTANTLY IN OUR WAY.
RIGHT NOW, THEY'RE IN THE WAY OF NEED MORE WHITFIELD STARTING AS WELL AS ROSS VIEW ROAD CONTINUING.
UNTIL WE CAN GET THOSE FOLKS OUT OF THE WAY, WE CAN'T START. WE HAVE NO LEVERAGE.
ALL WE CAN DO IS BEG, BORK ORR AND HOPEFULLY SHAME THEM INTO MOVING THEIR UTILITIES TIMELY TO GET OUT OF OUR WAY. AND EVERY COMMUNITY ACROSS THE STATE HAS THE SAME ISSUE WITH THOSE UTILITIES.
SO I WOULD HOPE THAT OUR LEGISLATIVE AGENDA COMMITTEE WILL TAKE US THIS ISSUE. IN FACT I'LL PROPOSE IT TO THEM WHEN THEY GET THERE IN JULY TO MAYBE TO BE ABLE TO PUT A, APPLY A LITTLE PRESSURE ON THE LEGISLATURE VIA THE UTILITIES. BACK TO THE TIMELINE.
THAT'S WHY IT TAKES SO LONG FOR CONSTRUCTION TO START AND OFTEN THAT HAMPERS THE CONTRACTORS THAT WE HAVE AVAILABLE TO BID ON PROJECTS BECAUSE THEY KNOW THEY HAVE TO DEAL WITH THOSE UTILITIES.
HAVING SAID THAT, I WANTED TO POINT OUT THAT'S ONE OF THE REASONS IT TAKES US SO LONG TO SPEND THE MONEY AND TO GET TO THESE PROJECTS COMPLETION.
BUT YOU SEE THOSE TIMELINES. AGAIN I WON'T PROPOSE TO READ THOSE TO YOU BUT THOSE ARE BEST ESTIMATES BASED ON MOVING THINGS ALONG FROM DESIGN AND ENGINEERING TO RIGHT OF WAY ACQUISITION, UTILITY RELOCATION AND ULTIMATELY CONSTRUCTION AND MANY OF THE PROJECTS WILL TAKE MULTIYEARS TO FINISH. LET'S GO NOW TO THE IMPACT OF THE PROPERTY TAX INCREASE BECAUSE THIS IS THE CHART THAT EVERYBODY LOOKS TO TO KNOW.
OKAY. WHAT IS THAT IMPACT ON THE PEOPLE IN MY WARD, THE PEOPLE ACROSS THE CITY.
THE AVERAGE HOME VALUE IN OUR COMMUNITY SEEMS LOW AND IT PROBABLY IS CHANGING BY THE MINUTE.
BUT ACCORDING TO THE ASSESSOR OF PROPERTY IT'S $166 AND CHANGE. IT'S ABOUT $7 PER MONTH INCREASE IN THEIR PROPERTY TAX BILL THEN YOU CAN SEE THE $250,000 HOME VALUE, AND THEN THE $100,000 HOME VALUE IF THEY EXIST IN OUR MARKET, RECOGNIZES ABOUT A $4.18 INCREASE IN THEIR PROPERTY TAX BILL.
WE ALSO TOOK THIS AND LOOKED AT HOW THIS WOULD IMPACT THOSE CITIZENS WHO LOW-INCOME, DISABLED VETERANS AND PERMANENTLY DISABLED SWELLS THOSE ON THE TAX FREEZE. IF YOU ADD THOSE THREE NUMBERS TOGETHER THERE IS ROUGHLY 4500 HOUSE HOLDS IN OUR COMMUNITY THAT WOULD THE NOT BE IMPACTED BY ANY TAX INCREASE. IT'S NOT LOST ON ME THAT WE'RE GOING TO BE ASKING OUR RESIDENTS TO PAY MORE IN TAXES BUT I CAN TELL YOU WE'RE GOING TO GIVE THEM A DELIVERABLE AND TRANSPORTATION IMPROVEMENT AROUND OUR CITY BY INCREASING THEIR TAXES.
WE'RE NOT JUST ASKING FOR TAX INCREASES JUST FOR JOAN GOVERNMENT. WE'RE GIVING THEM SOMETHING FOR THEIR MONEY. BUT THESE ARE THE CITIZENS THAT WE KNOW ARE IMPACTED MOST BY VIRTUE OF THEIR INCOME OR THEIR STATION IN LIFE.
WE WANTED TO MAKE SURE THAT YOU KNEW THAT WE'RE TAKING THAT INTO ACCOUNT. WE ALSO LOOKED AT COMMERCIAL PROPERTY OWNERS AND WHAT THEY WOULD SEE AS FAR AS INCREASES IN THEIR TAX RATE. AND TAX BILLS.
ROUGHLY $40 FOR THE AVERAGE COMMERCE PROPERTY IN OUR CITY. THEN WE WENT TO THE INDUSTRIAL PROPERTIES WHICH WE DON'T HAVE THAT MANY IN OUR COMMUNITY, BUT WE DO HAVE A FEW.
THEY WOULD RECOGNIZE AN INCREASE IN THEIR PROPERTY TAX BILL OF A LITTLE OVER $200 A MONTH FOR THE AVERAGE INDUSTRIAL PROPERTY IN OUR CITY.
LET'S WALK TOWN MEMORY LANE AND HISTORY OF OUR TAX RATE.
YOU CAN SEE WE'VE BEEN AT $1.24.
WE HAD A REAPPRAISAL OF $1.18 IN 2010 WE'RE BACK TO 1:24. LAST YEAR WHEN WE ADOPTED OUR CERTIFIED TAX RATE, SEE IT WENT DOWN BECAUSE OF THE REAPPRAISAL YEAR TO 102.96. THERE IS A THREE DIGIT TO THE RIGHT OF THE DEFENSE MAH REQUIRED BY STATE GOVERNMENT WE TRUE UP OUR REVENUES SO THAT OUR TAX RATE DOES NOT REALIZE AN INCREASE, REVENUE INCREASE FOR THE CITY.
SO WE'VE BEEN AT THE $1.24 LEVEL FOR A NUMBER OF YEARS THEN WE'RE PROPOSING TO GO TO THE $1.23 PER ASSESSED VALUE WHICH AGAIN WILL BE COMPARABLE.
JUST AS A REMINDER, WE'LL STILL BE UNDER THE CITIES THAT WE ARE OFTEN COMPARED TO, BUT WE ARE ALSO LOOKING TO INCREASE THE VIABILITY OF OUR TRAFFIC NETWORK FOR OUR CITY. SO LET'S LOOK AT TIER ONE AGAIN. AND YOU CAN SEE THAT WE HAVE
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MOVED THREE PROJECTS UP AND ONE PROJECT DOWN FROM THE ORIGINAL PRESENTATION WE MADE IN FEBRUARY.I WOULD INVITE YOU TO REVIEW THIS LIST AGAIN, REVIEW THE PLAN. AS I MENTIONED WE'LL BRING A RESOLUTION TO YOU IN JUNE AS A PART OF THE BUDGET.
ORDINANCES AND THIS RESOLUTION TO ADOPT A TRANSPORTATION PLAN AND A PLAN TO PAY FOR THAT.
SO I WILL INVITE YOU TO TAKE A LOOK AT THAT.
OFFER FEEDBACK, AND TEMPERATURE TO HELP HELP REVISE AND FOCUS THE PLAN TO DO THE THINGS WE REALLY NEED TO DO WHICH IS TO IMPROVE OUR TRANSPORTATION INFRASTRUCTURE PROGRAM. SO HAVING SAID THAT, THE NEXT SLIDE TELLS YOU WHERE THE PUBLIC CAN GO AND VIEW THIS ENTIRE UPDATED PRESENTATION.
I THINK THAT HAS BEEN DOWNLOADED TO YOUR IPADS AS WELL. SO YOU'VE GOT THAT IN FRONT OF YOU. AND SO THAT IS THE END OF THIS PRESENTATION. UNLESS YOU HAVE QUESTIONS, WE'LL MOVE ON TO THE BUDGET OVERVIEW.
I'M GOING TO MOVE BACK UP TO THE CHAIR SO I CAN WORK THE MICROPHONES. [PAUSE] OKAYCOM NIGHT, YOU ARE RECOGNIZED.
>> I TACK A LOOK AT THE ROADWAY PROJECTS FOR TIER 1.
I DON'T SEE ANYTHING ON THERE FOR RINGO ROAD.
I KNOW I'VE GOTTEN A LOT OF REQUESTS IN REGARDS TO SIDEWALKS FOR RINGO ROAD BUT I DON'T SEE ANYTHING ON THE PARTICULAR LIST IN REGARDS TO IT.
>> IT'S NOT ON TIER 1, IT'S TIER 2 BUT WE'D MOST LIKELY NEED TO LOOK AT THAT BECAUSE SIDEWALKS AROUND SCHOOLS WAS
COUNCIL PERSON SMITH YOU ARE RECOGNIZED.
>> THANK YOU FOR THE GOOD REVIEW.
IT WAS ESPECIALLY EXPLAINING THE TAXES IN OUR RESIDENTIAL AREAS. THANK YOU SO MUCH.
MY CONCERN IS ABOUT SIDEWALKS AND I TALKED TO YOU EARLIER ABOUT THIS A MINUTE.
I MENTIONED IT TO YOU ABOUT WE WOULD LIKE TO SEE SIDEWALKS ON CRAFT STREET. I DON'T SEE IT IN THE PLAN.
I KNOW YOU SAID PROBABLY THE OTHER PLAN TO MEET WITH THE NEW ESTABLISHED TRAILS THAT HAVE BEEN PLACED ON CRAFT STREET WHICH IS A WAY DOWN THE ROAD FROM FROST DES MOINES. SO WE'VE LIKE TO SEE SIDEWALKS ADDED TO CRAFT STREET MEETING THE NEW TRAIL THAT HAS BEEN ESTABLISHED ON CRAFT.
I WOULD ASSUME, THANK YOU, GOOD POINT.
COUNCIL PERSON ALLEN YOU ARE RECOGNIZED.
>> THANK YOU FOR THE REVIEW OF THE TRANSPORTATION PLAN.
I'M ASSUMING NEEDMORE ROAD IS ON TIER -- NOT NEEDMORE, TRENTON ROAD, HAZELWOOD AREA WHERE WE'RE ALWAYS CONGESTED. I'M ASSUMING THAT IS IN TIER 2. THAT'S IMPORTANT .
>> TRENTON ROAD IS A STATE HIGHWAY AS YOU KNOW.
IT'S ON, IT'S IN THEIR FUNDING QUEUE.
WE'VE JUST BEEN WAITING. >> OKAY.
>> AND SO AS SOON AS THE STATE T.'S IT UP IT WILL BE
MOVED TO CONSTRUCTION. >> OKAY.
SO I GUESS MY QUESTION IS WILL SOMETHING BE DONE WITH THAT BECAUSE TRENTON IS THE STATE ROAD, BUT THOSE TWO ROADS THAT COME OFF OF TRENTON, HAZEL WOOD AND THERE IS ANOTHER WHERE THERE IS ALWAYS ACCIDENTS THERE S.
THERE ANYTHING WE'RE GOING TO DO FOR THOSE ROADS?
>> WE DO HAVE HAZELWOOD AND NEEDMORE ROAD IN PHASE ONE.
THE INTERSECTION AS WELL AS NEEDMORE DOWN TO BOY, EAST BOY SCOUT THEN MAYBE OVER TO TINY TOWN.
THEN I THINK WE HAVE THAT IN TIER 2.
>> IT'S DEFINITELY ON LIST. >> OK.
THANK YOU. >> COUNCIL PERSON GARRETT,
YOU ARE RECOGNIZED. >> THANK YOU, PIGGY BACKING OFF OF A PREVIOUS SPEAKER, FOR CLARIFICATION IS THE REASON WHY WE'RE LOOKING AT JUST PHASE 1 WHICH I BELIEVE FROM TINY TOWN TO HAZELWOOD ROAD ON NEEDMORE ROAD BE BUMPED TO TIER 1 WHICH I'M EXCITED FOR BUT IS THE REASON BECAUSE OF THE AMOUNT OF TIME IT'S GO BEING TO TAKE TO GET PHASE ONE DOWN THEN YOU MOVE ON TO PHASE 2.
>> EXACTLY. TIME AND MONEY CURES MOST
>> TIME IS THE BIGGEST ENEMY OF NIECE PROJECTS.
>> OKAY. DO YOU EVER ANY TYPE OF I GUESS -- PROBABLY HARD TO PREDICT WITH COVID.
THAT SEEMS TO MAKE A LOT OF THINGS DEVELOPMENT IN THE DEVELOPMENT AND CONSTRUCTION WORLD, BUT I LOOK AT THOSE REALLY BIG DEVELOPMENTS FURTHER DOWN ON NEEDMORE
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ROAD WHICH WILL ADD TO THE TRAFFIC INCREASE WITH A FEW OTHER PROJECTS THAT ARE IN THE AREA.IF IN THE EVENT BEST CASE SCENARIO TWO SERVICE PROVIDERS THAT WILL BE REMAINED UNNAMED AT THIS MOMENT, YOU KNOW, SHOULD THEY HAPPEN TO NOT BE IN OUR WAY AND WE'RE ABLE TO MAYBE FAST TRACK THAT IS THERE ROOM TO COME BACK AND LOOK AT TAKING CARE EVER THE REST OF NEED MOORE ROAD POTENTIALLY BEFORE THE HUGE DEVELOPMENTS GET INTO PLACE TO MINIMIZE THE BURDEN OF TRAFFIC, YOU KNOW, BETWEEN WHERE WE'RE ALREADY DOING IMPROMISE AT THE ROUNDABOUT THEN OBVIOUSLY PHASE 1 ON
NEED MORE. >> EVERYTHING IS FLUID AT THIS POINT. I THINK WE JUST GOT TO PICK A STARTING POINT AND THEN WE'VE GOT TO CREATE A FUNDING PLAN TO GET IT MOVING.
RECOGNIZING PRELIMINARY DESIGN AND ROUTE PLAN SOMETHING KEY TO ANYTHING. EVEN THOUGH THE ROAD IS ALREADY THERE, WE STILL NEED TO MAKE SURE WE TAKE INTO ACCOUNT WHAT IS ALREADY BUILT ALONG THE ROAD OR GOING TO BE BELT. BECAUSE WE LOOKED AT SITE PLANS TASTED EVERYTHING IS FLUID.
WE CAN MOVE THINGS AROUND. THIS IS A LIVING BREATHING
DOCUMENT. >> FAIR ENOUGH, APPRECIATE
IT. >> ANYBODY ELSE HAVE QUESTIONS BEFORE WE MOVE INTO THE NEXT START OF OUR SESSION -- PART OF OUR SESSION TODAY? [PAUSE] ALL RIGHTY.
PART 2 OF OUR MEETING THIS AFTERNOON IS AN OVERVIEW OF THE PROPOSED FISCAL YEAR BUDGET.
ORDINARILY WE WOULD NOT DO SOMETHING LIKE THIS THIS EARLY BUT WE WANTED TO GIVE ESPECIALLY NEW COUNCIL MEMBERS AND OPPORTUNITY TO GET A HIGH LEVEL VIEW WITH A PRESENTATION BY MISS MANNA TO TALK ABOUT WHERE WE STAND IN TERMS OF REVENUE AND EXPENSES.
SHE WAS GOING TO TAKE A HISTORICAL WALK BACK THROUGH HOW REVENUES ARE TRACKING, HOW EXPENSES ARE TRACKING SO AS WE GO INTO THE BUDGET COMMITTEE MEETINGS, OVER THE NIX FEW DAYSD NEXT FEW DAY HELPS LOOK TO A BUDGET WORKSHOP, ON THE 15TH, AND THEN FURTHER READING LATER THAT WEEK, YOU WILL HAVE AS COMPLETE A PICTURE OF OUR BUDGET AS POSSIBLE. SO FOR THE NEXT FEW MINUTES, I'VE ASKED HER TO PREPARE SOME SLIDES TO WALK YOU THROUGH WHAT THE NUMBERS LOOK LIKE.
TO GIVE YOU A SENSE THAT WE CANNOT CONTINUE TO SUSTAIN OPERATIONS AND DO THE THINGS THAT OUR GROWING COMMUNITY NEEDS UNLESS IT'S GOING TO PUT MORE PRESSURE ON US AS WELL AS LIMIT SERVICES AT A TIME WHEN WE NEED TO BE EXPANDING SERVICES. SINCE WE HAVE SEVERAL NEW MEMBERS AS I MENTIONED, AND THIS BUDGET PROCESS I WOULD LIKE TO REMIND YOU STAYED A PRESENTATION, IT'S JUST TO GIVE YOU THE BACK GROUND AND FOUNDATION OF INFORMATION YOU ARE GOING TO NEED GOING INTO THE COMMITTEE MEETINGS AS WELL AS MEETINGS WITH THE C.F.O. IF YOU CHOOSE OR DEPARTMENT HEADS WHICH I WOULD ENCOURAGE THEN THEY CAN THEN PROVIDE INFORMATION FOR YOU.
WE'LL ASK YOU TOJO DOWN ANY QUESTIONS YOU'VE GOT AND -- TO JOT DOWN ANY QUESTIONS YOU'VE GOT AND USE THOSE QUESTIONS AS A BASIS. I APPRECIATE YOUR PATIENCE WHILE WE ADDRESS OUR CONCERNS AND PROVIDE BACKGROUND INFORMATION FOR YOU.
COUNCIL MEMBER EVANS YOU ARE ON THE LIST.
DID YOU WANT TO ASK A QUESTION?
>> YES. >> YOU ARE RECOGNIZED.
>> THANK YOU. I WAS WONDERING IF THIS IS
ON A FILE. >> IT IS ON A FILE AND WILL
THANK YOU. >> IT'S ALREADY ON THE IPAD. I STAND CORRECTED.
>> WHERE IS IT AT. I'M NOT FINDING IT.
>> HOLD THAT THOUGHT. >> THANK YOU.
[INAUDIBLE] >> GOT IT? THANK GOD FOR SYLVIA. MISS MANNA, DO YOU WANT TO COME UP AND -- [PAUSE] OKAY. THE SLIDE SHOWS ARE ACTUALLY NOT ON THERE BUT THEY WILL BE ON THERE.
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WE'LL SEND THOSE TO YOU. >> THANK YOU.
>> YOU'LL HAVE THOSE. THANKS FOR BRINGING IT TO MY ATTENTION. THIS WILL BE SENT TO YOU RIGHT AFTER THE MEETING. EVERYBODY GOOD?
MISS MANNA, PLEASE PROCEED. >> I'M GOING TO PRESENT THE HIGH LEVEL OVERVIEW AS THE MAYOR SAID ABOUT THE BUDGET.
I REALLY HOPE THAT YOU ALL COME TO THE MEETINGS OVER THE NEXT REST OF THE WEEK BECAUSE I REALLY WANT YOU TO UNDERSTAND WHAT YOU ARE APPROVING.
IT'S QUITE A FETE TO PUT THE BUDGET TOGETHER AND I APPRECIATE YOUR INPUT. I FORGOT I'M CLICKING, TOO.
SO LITTLE BIT ABOUT OUR BUDGET PROCESS.
REAL QUICKLY, OUR BUDGET IS VERY COMPREHENSIVE AND EXTREMELY LARGE. IT'S NO SMALL FETE TO PULL IT TO. WE START IN MAR AND WE END IN JUNE WITH THE APPROVAL OF THE BUDGET.
WE'RE GOING TO BE ASKING YOU TO APPROVE SEVERAL BUDGET ORDINANCES THAT TOTAL OVER $580 MILLION.
THAT IS OVER HALF A BILLION DOLLAR FOR THIS ENTERPRISE THAT WE RUN CALLED LOCAL GOVERNMENT.
WE HAVE 14 GOVERNMENTAL FUNDS, 7 ENTERPRISE FUNDS AND 3 INTERNAL SERVICE FUNDS THAT MAKE UP OUR LOCAL GOVERNMENT. THE ENTERPRISE FUNDS ARE LIKE A BUSINESS. THEY PROVIDE A SERVICE AND THEY RATE PAYERS PAY FOR THE SERVICE THEY'RE USING.
THE GOVERNMENTAL FUNDS ARE NOT SUPPORTED BY RATE PAYERS. WHILE THERE ARE MANY SOURCES OF TAX REACH KNEW THAT SUPPORTS THE LOCAL GOVERNMENT, THEY ARE NOT PAYING FOR A SPECIFIC SERVICE THEY'RE PROVIDING. SO BY EXAMPLE, NOBODY PAYS WHEN A POLICE OFFICER SHOWS UP TO A CAR ACCIDENT OR WHEN THE FIRE DEPARTMENT COMES TO PUT OUT A FIRE.
NOBODY IS PAYING A BILL AT THAT MOMENT.
SO OUR PROPERTY TAXES ARE WHAT IS SUPPOSED TO PAY FOR THOSE TYPES OF SERVICES. SO I WANT TO TELL YOU OUR GENERAL GOVERNMENT TAXES RUN ABOUT $34 MILLION A YEAR.
JUST THE AMOUNT OF BUDGET THAT IT COSTS TO RUN OUR POLICE AND FIRE DEPARTMENT ALONE IS $60 MILLION.
SO LOOK AT THE MAGNITUDE OF THE COMMENT.
OUR PROPERTY TAXES BARELY PAY HALF OF WHAT IT TAKES JUST TO RUN TWO SERVICES IN OUR LOCAL GOVERNMENT.
SO A LITTLE INFORMATION FOR COMPARISON PURPOSES ON OUR F.Y.21 BUDGET. YOU ALL WEREN'T HERE AT THE TIME WHEN WE HAD TO APPROVE THAT ONE, MOST OF YOU WEREN'T. WE RECEIVED A MANDATE ABOUT THE 11TH HOUR OF CREATING OUR 21 BUDGET THAT SAID YOU HAVE TO CREATE A BUDGET WITH LESS REVENUES THAN YOU HAD LAST YEAR, LESS THAN 20. EXPENDITURES THAT ARE LESS THAN THE PREVIOUS YEAR, AND LESS THAN THE REFUSE KNEWS THAT YOU ARE PROJECTING. FOR US THIS WOULD HAVE BEEN IMPOSSIBLE WITHOUT CUTTING POSITIONS.
OUR POSITIONS OUR PAY, OUR EMPLOYEES WERE A NUMBER ONE CONCERN OF MAINTAINING THAT. SO THE ADVICE FROM THE COMPTROLLER'S OFFICE WHICH WE'RE SUBJECT TO THE OVERSITE MUCH THE COMPTROLLER'S OFFICE AND THEY HAVE TO APPROVE THE BUDGET EVERY YEAR.
THEY SAID GET A BUDGET APPROVED.
THEN AMEND IT. SO THAT IS EXACTLY WHAT WE DID. AND IN OCTOBER WE AMENDED OUR F.Y.2 22 -- 21 BUDGET. I POINT THIS OUT BECAUSE WHEN YOU ARE LOOKING AT THE DETAILED BUDGET THERE IS A COLUMN THAT SAYS ORIGINAL BUDGET FOR F.Y.21.
THEN THERE IS A REVISED BUDGET FOR F.Y.21.
IT'S NOT FAIR TO LOOK AT F.Y.21 ORIGINAL BUDGET BECAUSE IT'S NOT REALITY. THAT WAS NOTHING.
THERE WAS NO WAY WE WOULD HAVE BEEN ABLE TO CONTINUE OPERATIONS. I WANT TO SHOW YOU AN EXAMPLE. THIS IS THE LEGISLATIVE DEPARTMENT ALONE. THE BLUE LINE, COLUMNS ARE WHAT THE, WHAT WE CALL THE STATUS QUO BUDGET.
THAT WAS A REDUCED BUDGET. IT'S THE FIRST COLUMN IS SALARIES ALONE. THE RETLINE IS WHERE WE NEEDED TO BE IN ORDER TO PAY THE SALARIES.
SO THERE IS A GAP THERE BETWEEN THE BLUE AND THE RED. WE WOULD NOT HAVE BEEN ABLE TO PAY SALARIES THE LEGISLATIVE DEPARTMENT WHICH IS ALL OF YOU AND SYLVIA AND BILL.
THE MILITARY LIAISON IF WE DID NOT AMEND THE BUDGET SO
[00:35:04]
IT'S NOT FAIR TO COMPARE TO THAT BUDGET.THAT'S WHY I POINT THAT OUT. THES LITTLE GAP THERE THAT YOU SEE FOR THIS DEPARTMENT TOTALED $3.7 MILLION FOR THE ENTIRE CITY. THE GENERAL FUND COULD NOT, WAS 3.7 MILLION SHORT IF WE STUCK WITH THAT TO PAY SALARIES. THAT'S WHY WE AMENDED IT.
AT THE TIME WE AMENDED IT, WE KNEW A LOT MORE INFORMATION ABOUT OUR REVENUE AND EXPENDITURES SO IT WAS WELL WORTH THE EFFORT SO THIS IS THE A QUICK SNAPSHOT OF THE ENTIRE BUDGET.
SHOWS A TOTAL EXPENDITURINGS OF $583 MILLION,567 AND 399.
MENT WE'VE BEEN ASKED OVER THE YEARS TO DO GENERALLY SWEEPING REDUCTIONS TO OUR BUDGETS.
IT'S IN THE AS EASY AS YOU MAY -- NOT AS EASY AS YOU THINK. FOR INSTANCE, WE HAVE OBLIGATIONS THAT WE'RE REQUIRED TO PAY.
IF SOMEBODY SAID, REDUCE THE ENTIRE BUDGET BY 10%, WHERE ARE WE GOING TO TAKE THE 10% FROM? BECAUSE IF WE TAKE IT OFF OF THE TOP ONE OF THE LARGEST EXPENSES OF THE GENERAL FUND IS OUR DEBT SERVICE, IF YOU TAKE OFF THE DEBT SERVICE IT JUST VIOLATED OUR BOND COVENANT.
WE HAVEN'T BEEN ABLE TO PAY OUR REQUIRED DEBT SERVICE PAYMENTS. IF WE JUST TAKE A SWIPE OFF WE'RE REQUIRED BY STATE LAW TO PAY THE COUNTY FOR A LIQUOR DRINK TAX. IF WE TAKE A SWEEPING NUMBER OFF THE TOP, WE CAN'T PAY THAT AND WE VIOLATED STATE LAW SO IT'S NOT AS SIMPLE. I WANT TO POINT THAT OUT.
I ALSO NEED TO POINT OUT OUR SALARIES ARE 75% OF THE GENERAL GOVERNMENT DEPARTMENT'S BUDGET IS SALARIES. IF WE DO BIG CUTS YOU ARE TALKING ABOUT CUTTING SERVICES OR YOU ARE CUTTING PEOPLE. THERE REALLY IS NO FAT IN THE BUDGET. WE'RE VERY METICULOUS, WE'RE VERY DETAILED AND WE QUESTION -- ASK ANY DEPARTMENT HERE, WE QUESTION EVERY EXPENSE THAT GOES UP.
WE WANT TO KNOW WHY. SO THIS ISN'T A FLUFFY BUDGET. IT IS WHAT WE NEED TO CONTINUE TO PROVIDE THE SERVICES.
ONE OTHER ITEM THAT WE'RE DOING THIS YEAR IS CREATING A NEW DEPARTMENT. YOU ARE GOING TO SAY WHY ARE YOU CREATING A NEW DEPARTMENT? IT'S GOING TO COST US MONEY. WELL, NO, IT'S NOT.
WE'VE MOVED MONEY FROM OUR DEPARTMENTS TO CREATE THIS DEPARTMENT. SO WE'VE TAKEN ALL THE EMPLOYEES THAT WERE IN THE PARKS DEPARTMENT FOR BUILDING MAINTENANCE AND MOVING THEM INTO THIS DEPARTMENT. WE'VE TAKEN THE PARKING EMPLOYEES FROM THE FINANCE DEPARTMENT AND MOVED THEM IN HERE THEN THE FORESTRY PEOPLE OUT OF THE PARKS DEPARTMENT AS WELL AND PUT THEM IN HERE.
SO THE NET EFFECT OF CREATING THIS DEPARTMENT IS $20,000. THAT IS BECAUSE THE DIFFERENT IN PAY FROM A MANAGER TO A DEPARTMENT HEAD. SO IF THIS DEPARTMENT DOES NOT GET CREATED AND IT'S NOT APPROVED, ALL OF THESE EXPENDITURES WILL HAVE TO BE AMENDED BACK INTO THE OTHER PEOPLES' DEPARTMENT. SO THE ONLY SAVINGS THEY WOULD BE FROM THIS IS $20,000.
THE MAYOR SAID I WAS GOING TO TALK A LITTLE BIT MORE ABOUT DEBT. I GUESS I'LL EXPLAIN GENERAL OBLIGATION BONDS WHAT THE GENERAL GOVERNMENT ISSUES.
THEY ARE GUARANTEED BY THE FULL FAITH AND CREDIT OF THE CITY. THE GUARANTEE THAT YOU WILL RAISE TAXES IN ORDER TO PAY OUR BONDS.
THE 97.7 MILLION OF OUTSTANDING GO BONDS WERE ISSUED FOR THINGS LIKE THE MARINA, THE NEW POLICE AND FIRE FACILITY. NEW PARKS, NEW ROADS, INTERSECTION IMPROVEMENTS AND THE LIKE.
THE ENTERPRISE FUNDS HAVE A TOTAL OF $221.3 MILLION.
THE MAJORITY OF THIS WAS TO PAY FOR SUBSTATIONS AND THE FIBER NETWORK FOR C.D.ECHT AND FOR GAS AND WATER, IT WAS MOSTLY TO PAY FOR THE WASTEWATER TREATMENT PLANT.
THESE TWO TYPES OF DEBTS DON'T MIX.
ENTERPRISE FUNDS ISSUE REVENUE BONDS, GENERAL FUND ISSUES G BONDS. THEY DO NOT MIX WITH EACH OTHER. I WANTED TO POINT OUT THE PER CAPITA INFORMATION AS WELL.
SOME PEOPLE LOOK AT THE DEBT AND THINK OH, MY GOSH THAT IS SO MUCH. IT'S NOT.
IT'S VERY, VERY LOW FOR A CITY OUR SIZE.
SOME OF THE CITIES THAT I TRY TO GET THE INFORMS ON -- INFORMATION ON SOME OF THEM REPORTED JUST GENERAL GOVERNMENT DEBT AND SOME REPORTED COMBINATION OF BOTH. SO THAT IS WHY I PUT THEM BOTH UP THERE FOR YOU. SO THE GENERAL FUND ALONE FOR THE GENERAL OBLIGATION BONDS IS $618 AND THAT IS JUST DOLLARS PER PERSON OF DEBT THAT WE HAVE.
[00:40:05]
ENTERPRISE WIDE WHICH IS THE GENERAL GOVERNMENT INCLUDING THE ENTERPRISE FUNDS IS $2,018 PER PERSON.I DON'T WANT TO BE LIKE THESE OTHER CITIES AND I'M NOT TRYING TO TELL YOU WE WANT TO BE LIKE THE OTHER CITIES, BUT IF YOU LOOK AT THE COMPARISON YOU'VE CITIES 3 AND 4,000 PER PERSON WORTH OF DEATH SO WE'RE MANAGING OUR DEBT VERY WELL. THAT'S WHAT I WANTED TO SHOW YOU THERE. WE'RE NOT EXTREME AND WE'RE NOT OVERSPENDING. SORRY.
GENERAL FUND REVENUE SOURCES I WANT TO DESCRIBE A DIFFERENCE BETWEEN THE GENERAL FUND AND ENTERPRISE FUNDS AGAIN. I THINK EASIEST WAY TO EXPLAIN THE DIFFERENCE IS AN ENTERPRISE FUND CANNOT BENEFIT FROM THE GENERAL FUND AND A GENERAL FUND CANNOT BENEFIT FROM THE ENTERPRISE FUND.
WE PAY THE ENTERPRISE FUNDS WHEN THEY PROVIDE US WITH WATER AND GAS AND SEWER AND THEY PAY US FOR WHEN WE PROVIDE THEM WITH SECURITY SERVICES.
WE'RE NOT ALLOWED TO BENEFIT OFF EACH OTHER.
SO THE GENERAL GOVERNMENT REVENUE SOURCES ARE MANY.
THE LARGEST CATEGORY IS PROPERTY TAXES.
SALES TAX, INTERGOVERNMENTAL REVENUES, THAT'S WHERE WE GET THE STATE SHARE REVENUES, THIS IS BASED ON THE CENSUS. SO WE ARE STILL COLLECTING ON THE CENSUS NUMBERS THAT WERE REPORTED IN 2010.
SO WE'RE COLLECTING STILL ON $132,9 -- 132929 PEOPLE.
WE DON'T HAVE NEW CENSUS NUMBERS, WE DON'T KNOW WHEN IT'S COMING OUT. CHARGES FOR SERVICES ARE THINGS LIKE THE GOLF COURSES, PARKS PROGRAMS, AND PERMITS ARE MOSTLY BUILDING PERMITS.
SO HOW ARE WE GOING TO SPEND THIS 20 CENT TAX INCREASE? SO STREET DEPARTMENT IS GOING TO GET JUST ABOUT 1.6 MILLION BECAUSE THEY ARE IN DESPERATE NEED OF ANOTHER CREW TO MAINTAIN OUR STREETS.
THEIR EQUIPMENT IS WELL BEYOND THE USEFUL LIFE AND THEY NEED MORE EQUIPMENT. OUR MILES OF STREETS HAVE INCREASED OVER THE PAST TEN YEARS BY NEARLY 10% WITH 53 MORE MILES TO MAINTAIN THAT OUR CREW AND EQUIPMENT HAVE NOT INCREASED AT ALL. NEARLY 1.6 MILLION WILL PROVIDE THEM WITH WHAT THEY NEED TO CONTINUE TO MAINTAIN OUR STREETS. THE BALANCE OF $5. 2 MILLION WILL BE TRANSFERRED INTO THE CAPITAL PROJECTS FUND AND THAT WILL PAY THAT GAP THAT I TALKED ABOUT ON THE TRAFFIC 2020 PLAN. THOSE FUNDS WILL BE AVAILABLE TO PAY FOR THOSE THINGS BEFORE WE ISSUE DEBT.
SO YOU CAN SEE NONE OF IT IS STAYING IN THE GENERAL FUND FOR ANYTHING ONLY STREETS. NOW THIS ONE, OUR REVENUES JUST HAVEN'T BEEN KEEPING UP WITH OUR EXPENDITURES.
AS YOU CAN SEE FROM THE GRAPH, WE WERE DOING REALLY REALLY WELL UP UNTIL TAX YEAR 2020.
THAT IS WHEN OUR CERTIFIED TAX RATE HIT AND YOU CAN SEE THAT OUR REVENUES ARE JUST NOT KEEPING UP WITH THE EXPENDITURES. THAT'S THE GAP BETWEEN THE GROWTH IN REVENUES AND THE GROWTH IN EXPENDITURES.
SO JUST KEEPS GETTING WORSE. I KNOW SEVERAL OF YOU WEREN'T HERE AND THE MAYOR MENTIONED THIS AS WELL.
I'VE BEEN SAYING SINCE THIS WAS, CAME THROUGH THE CERTIFIED TAX RATE IT IS NOT A SUSTAINABLE TAX RATE.
BY HAVE MET WITH THE ASSESSOR, WE'VE MET WITH THE STATE. AND THEY ARE AWARE THAT THE CERTIFIED TAX RATE CALCULATION HAS SOME FLAWS IN IT. IT DOESN'T TAKE INTO ACCOUNT ANY APPEALS. IT DOESN'T TAKE INTO ACCOUNT ANY ADJUSTMENTS THAT ARE MADE.
WHEN THE CERTIFIED TAX RATE GETS CALCULATED IT ASSUMES EVERYBODY ACCEPTED THE NEW VALUES OF THEIR LAND.
MOST BIG COMPANIES ESPECIALLY ARE GOING TO APPEAL MAJOR INCREASES IN VALUES.
A LOT OF PEOPLE DO AS WELL. SO THE TAX RATE THE $102.96 WE LOST OVER $1 MILLION IN GROWTH AS WELL AS IN OUR TAX BASE. OUR TAX BASE DROPPED OVER $1 MILLION. WE GOT 0 GROWTH.
YOU KNOW HOW MUCH CLARKSVILLE IS GROWING.
WE SHOULD HAVE HAD AN INCREASE.
WE HAD A DECREASE IN REVENUE THAT YEAR.
AND WE'RE STILL HURTING FROM IT EVERY SINGLE YEAR.
THE STATES, WE'RE TRIED TO GET THE STATE TO CHANGE THE
[00:45:02]
CALCULATION. THE ASSESSOR'S ASSOCIATION HAS TRIED TO GET IT CORRECTED AS WELL AND THEIR RESPONSE SO US WELL IF YOU KNOW YOU ARE GOING TO LOSE MONEY EVERY YEAR, RAISE YOUR TAXES.THAT IS POLITICALLY NOT THE RIGHT THING DO.
HOW DO YOU TELL CITIZENS OH, BY THE WAY THE CERTIFIED TAX RATE SHOULD BE REVENUE NEUTRAL BUT I WANT MORE MONEY. THEY'RE NOT GOING TO UNDERSTAND IT. I DON'T THINK THAT'S A GOOD SOLUTION BUT THAT'S ALL WE HAVE AT THIS POINT.
A LITTLE MORE ABOUT OUR FUND BALANCE.
WHAT IT IS NOT, IT'S NOT A SAVINGS ACCOUNT.
IT'S NOT SUPPOSED TO BE USED FOR RECURRING EXPENSES.
BUT WHAT FUND BALANCE IS FOR CONTINUITY OF OPERATIONS AND TO MITIGATE RISKS. OUR FUND BALANCE POLICY AND OUR FUND BALANCE PRACTICE IS BEST PRACTICES.
IT HAS BEEN TRY AND TESTED. WE'VE MADE IT THROUGH TORNADOES. I WAS GOING TO SAY HURRICANE, WE DON'T HAVE HURRICANES UP HERE.
WE MADE IT THROUGH TORNADO, WE'VE MADE IT FLEW FLOODS -- THROUGH FLOODS. WE MADE IT FLEW ICE STORMS. IT'S THE RIGHT AMOUNT OF MONEY.
SOME PEOPLE MIGHT SAY THE PANDEMIC WAS AN EMERGENCY.
WELL, NOT IN THE GOVERNMENTAL WORLD.
IN THE GOVERNMENTAL ACCOUNTING WORLD, HAS BEEN MADE EXTREMELY CLEAR THAT WAS NOT AN ON THE OTHER HAND EVENT. WE SHOULD HAVE KNOWN IT'S COME. WE SHOULD HAVE PLANNED FOR IT AND IT'S NOT GOING TO GO AWAY.
IT WOULD NOT BE APPROPRIATE TO USE OUR FUND BALANCE TO COVER THAT BECAUSE WE HAVE RECEIVED MORE MONEY FROM THE FEDERAL AND THE STATE GOVERNMENT TO COVER THOSE EXPENSES. SO IT DOESN'T MAKE SENSE TO USE FUND BALANCE FOR THAT: THE BEST PRACTICE POLICY IS TYPICALLY THREE MONTHS OF YOUR OPERATING EXEXPENDITURES OR A PERCENT OF YOUR TOTAL EXPENDITURES.
SO 3 MONTHS OF EXPENDITURES IS ABOUT $30 MILLION.
20% IS 24.4 MILLION. SO WE HAVE A 20% POLICY WHICH IS ABOUT $6 MILLION LESS THAN THREE MONTHS EXPENDITURES. THE OTHER THING WE DO IS EVERY TIME WE ISSUE DEBT, WE GET RATED BY MOODIES AND FITCH. OUR CURRENT RATING IS VERY STRONG AT A DOUBLE A. TWO. THERE IS A LOT OF UPWARD PRESSURE TO INCREASE OUR BOND RATING.
THE REASON WE KEEP GETTING HELD BACK IS BECAUSE WE HAVEN'T BEEN ABLE TO BUILD OUR HEALTHIER FOUND BALANCE.
Y IN SAY IF YOU GET YOUR FUND BALANCE UP HIGH ERR WE'LL UPGRADE YOU. IF WE REDUCED OUR FUND BALANCE OR WE DON'T INCREASE THAT AND OUR CREDIT RATING GOES DOWN THAT INCREASES THE COST OF BORROWING DEATH.
WHEN WE GO TO MARKET PEOPLE WANT OUR DEBT.
PEOPLE ARE RUSHING TO THE MARKET TO BUY FROM US BECAUSE WE'RE SO RELIABLE. WE WON'T HAVE THE ABILITY IF OUR CREDIT RATING GOES DOWN. SO WHEN WE START OUR BUDGET PROCESS THE BASIC CALCULATION FOR STANDARD IS IDENTIFYING THAT WHAT FUNDS ARE AVAILABLE TO START WITH TO APPROPRIATE. SO I DON'T START WITH HOW MUCH MONEY DO WE NEED THEN RAISE THE REVENUE ITSELF.
WHAT I DO IS START WITH THE REVENUES.
I SWAY CAN WE AFFORD? IT'S BALANCING ACT BETWEEN WHAT WE NEED TO PROVIDE THE SERVICES AND WHAT THE CITIZENS WANT AND ARE WILLING TO PAY FOR.
SO THE CALCULATION WE START WITH IS YOU ATHE PRIOR YEAR'S UNRESTRICTED FUND BALANCE OR UNRESERVED, FUND BALANCE WHICH WAS $26.1 MILLION.
TAKE THE 20% RESERVE REQUIREMENT OUT.
YOU HOLD THAT ASIDE. WHAT IS LEFT? 1.6 MILLION WAS LEFT. THEN I GO AHEAD AND PROJECT THE REVENUES AND SEE WHERE WE'RE GOING TO ABOUT AND ADD THAT TO THE 1.6. THAT GAVE US $122 MILLION TO APPROPRIATE TO DEPARTMENTS. SO A GENERAL WAGE INCREASE IN THIS BUDGET. I'M SURE SOME PEOPLE SAY, WHY ARE YOU GIVING A GENERAL WAGE INCREASE IF YOU ARE GOING TO INCREASE OUR TAXES? THE TAXES ARE NOT PAYING THE INCREASED TABS ARE NOT PAYING FOR THE GENERAL WAGE INCREASE AT ALL. THEY'RE COVERING THAT, THOSE NEW STREETS REQUIREMENTS THAT ARE NECESSARY.
SO LITTLE BIT OF HISTORY IS PROBABLY WARRANTED ON OUR GENERAL WAGES. IN 2011 I THINK IT WAS, THERE WAS A PAY STUDY THAT WAS NECESSARY AND COST THE CITY OVER $3 MILLION TO TRY TO GET US ON TRACK.
AGAIN IN 2021 WE DID ANOTHER PAY STUDY JUST FOR PUBLIC
[00:50:01]
SAFETY. POLICE AND FIRE ONLY.IT COST THE CITY NEARLY $4 MILLION TO IMPLEMENT THAT PAY PLAN. THE STUDIES AND GENERAL WAGE INCREASE ARE NECESSARY TO KEEP US COMPETITIVE.
ANY DEPARTMENT CAN TELL YOU HOW DIFFICULT IT HAS BEEN TO FILL POSITIONS. WE TRAIN THEM AND THEY LEAVE US TO GO TO OTHER TOWNS WHERE THEY CAN MAKE MORE MONEY. WE HAVE TO KEEP UP WITH THE PAY. WE STRUGGLE TO STAY FULLY STAFFED. OUR PLANNED 2.5 GENERAL WAGE INCREASE IS NOT AS MUCH AS THE MARKET IS DOING BUT IT'S SOMETHING TO STAY COMPETITIVE.
THE YEAR HAS BEEN MOST DIFFICULT BECAUSE PAY HAS BECOME INCREASINGLY DIFFICULT TO STAY ON TOP OF.
CERTAIN AREAS LIKE BUS DRIVERS, C.D.L.
LARGE EQUIPMENT OPERATORS HAVE RYE SOCKETED FINDING IT EVEN MORE DIFFICULT TO HIRE AND RETAIN GOOD EMPLOYEES.
COVID FUNDS ARE NEXT. SO WE'VE RECEIVED AND HAVE ACCESS TO A LOT OF COVID MONEY.
A LOT OF DIFFERENT POTS OF MONEY ARE COMING AT US.
THEY ARE ALL VERY SPECIFIC WITH VERY SPECIFIC RESTRICTIONS. THE STATE FUNDS WE RECEIVED LAST YEAR HAVE NO RESTRICTIONS BUT WE FELT IT WAS ONLY BEST TO SPEND IT ON ONE-TIME EXPENDITURES SO WE WON'T BECOME RELIABILITY ON IT FOR NORMAL OPERATIONS.
THERE IS C.D.B.E. THEY HAVE A TON OF RESTRICTION. WE'VE WORKED TO GET THE MOST IMPACT OUT OF DOLLARS PROVIDED AND CONTINUE TO WORK THROUGH THE NEW FUNDS AND THE NEW RESTRICTIONS.
FOR F.Y.21 WE USED THE FUNDS FOR ONE-TIME EXPENDITURES FOR PUBLIC SAFETY AND I.T.INFRASTRUCTURE.
FOR F.Y.22, WE'RE AGAIN GETTING SIGNIFICANT FUNDS, HOWEVER ALL OF THEM HAVE RESTRICTIONS.
THEY'RE VERY SPECIFIC. THE STATE 1.7 MILLION CAN ONLY BE USED FOR ONE TIME EXPENDITURES AND MUST BE SPENT BY JUNE 30 OF 20202 SO THE ABOVE IS THE PLANNED USE OF THOSE FUNDS FOR THE STATE MONEY.
AGAIN IT'S PUBLIC SAFETY AND I.T.
ON THE NEXT ONE IS OUR ART FUND.
THESE ARE THE NEWEST FUNDS COMING TO US, THAT WILL BE
PAID IN TWO. >> TEACHING ASSISTANT: AS THEIR NEW FAVORITE WOFFORD OF $12.7 MILLION.
WE SHOULD RECEIVE THE FIRST ONE THIS MONTH AND THEN THE SAME AMOUNT A YEAR FROM NOW. SO SHOULD BE $12.7 MILLION.
THESE RESTRICTIONS ARE EXTREMELY TIGHT ON WHAT WE CAN USE THE FUNDS FOR. THE STATE COVERAGE TROLLER'S OFFICE WILL BE AUDITING OUR USE OF THE FORMS AND ANYTHING THEY DETERMINED IS NOT APPROPRIATE WE'LL HAVE TO REPAY FROM THE GENERAL FUND.
SO IT'S VERY IMPORTANT THAT WE DOT OUR I.'S AND CROSS OUR T.'S BUT THIS IS REALLY HIGH LEVEL.
ONE OF THE THINGS I'VE HAD A CONVERSATION WITH THE COMPTROLLER'S OFFICE LAST WEEK.
WE'RE CONFIDENT WE'LL BE ABLE TO FUND OUR SHUTTERED VENUES. WE'VE THREE SHUTTERED VENUES THAT ARE PART OF THE CITY. THEY ARE THE AJAX SENIOR CENTER, WE ALWAYS FUND THEM. THE ROXY REGIONAL THEATER AND PERFORMING ARTS CERTAINTY WHICH IS NEWLY BECOMING OURS THEN THE CUSTOMS HOUSE MUSEUM.
HAS BEEN OURS FOR YEARS. WE'RE PRETTY CONFIDENT WE CAN FUND THEM BUT YOU DO NEED TO KNOW WHEN WE DON'T HAVE THE FUND AVAILABLE THEY HAVE TO MOVE BACK INTO THE GENERAL FUND. THEN THE OTHER USE OF THE FUNDS IS WE CAN USE REVENUE RECOVERY FROM LOST ROUGH KNEW IN THE GENERAL FUND. -- REVENUE IN THE GENERAL FUND. YOU MIGHT THINK WE REALLY DIDN'T LOSE MUCH. THE WAY THE FORMULA IS AND THEY CHANGED IT FROM THE FIRST TIME WE SAW THE COVID RESTRICTS TO LAST WEEK'S FINAL INTERIM GUIDANCE, HOWEVER THEY CALL IT. AND IT ALLOW FORCE 4.1% GROWTH EACH YEAR SO I'M WORKING ON THOSE COLLISIONS AND WORKING THROUGH THE $1 -- 155 PAGE GUIDANCE SO THESE THINGS MAY CHANGE BUT I'LL LET YOU KNOW WHAT THEY'LL CHANGE TO. OH, AND THAT IS ALL, FOLKS.
>> OKAY. WE'VE GIVEN YOU A BROAD OVERVIEW OF WHAT YOU ARE GOING TO BE SEEING OVER THE NEXT FEW WEEKS, DAYS AND WEEKS.
WE WILL MAKE SURE THAT WE SEND TO YOU THE SLIDE PRESENTATIONS THAT YOU'VE SEEN AND WE WILL BE REVISITING BOTH THE TRANSPORTATION PLAN AS WELL AS THE BUDGET OBVIOUSLY AND THE TAX RATE WILL HAVE TO BE SET BY ORDINANCE SO WE'LL BE REVISITING THAT AS WELL.
[00:55:03]
SO THAT'S ALL WE'VE GOT PREPARED.ANY QUESTIONS BEFORE WE CALL FOR AN ADJOURNMENT.
THE PURPOSE FOR WHICH THIS SPECIAL SESSION HAVING BEEN ACCOMPLISHED I'LL ENTERTAIN A MOTION TO ADJOURN.
* This transcript was compiled from uncorrected Closed Captioning.