>>> GOOD MORNING, EVERYONE.
THANK YOU SO MUCH FOR JOINING
THE FINANCE AND HOUSING
COMMITTEE OF THE CITY COUNCIL.
THE DATE IS MAY 4INGth.
AND TODAY, IT IS 9:30 A.M.
I'M TERESA MOSQUEDA.
WILL THE CLERK PLEASE CALL THE
ROLE?
ROLL?
[ ROLL CALL ]
>> OKAY.
THANK YOU VERY MUCH, MADAM
CLERK.
I KNOW WE WILL PROBABLY HAVE
OUR OTHER TWO COUNCILMEMBERS
JOINING US, INCLUDING VICE-
CHAIR HER BOLD.
HERBOLD.
THANK YOU FOR JOINING US.
I ALSO KNOW THAT COUNCILMEMBER
LEWIS WILL PROBABLY BE JOINING
HERE IN A SECOND.
GOOD MORNING, COUNCILMEMBER
LEWIS.
COUNCILMEMBER LEWIS JUST JOINED
US.
CAN YOU READ HOW MANY WE HAVE
PRESENT?
>> CURRENTLY, WE HAVE FIVE
COUNCILMEMBERS PRESENT.
NONE ABSENT.
>> THANK YOU SO MUCH.
THANK YOU FOR JOINING US.
I HAD TWO DIFFERENT TIMES
LISTED ON MY END.
SO I GOT A LITTLE JUMP START.
EXCITED TO SEE WE HAVE A FULL
MEETING TODAY AND A FULL
COMMITTEE AGENDA AS WELL.
WE'RE GOING TO START WITH THE
PRESENTATION.
ORIGINALLY, WE HAD THE OFFICE
OF HOUSING COMING TO PRESENT ON
THEIR STAFFING PROPOSAL.
COLLEAGUES, I WILL BE MAKING A
MOTION TO HOLD THIS ITEM, IN
CONVERSATION WITH THE OFFICE OF
HOUSING.
JUST A FEW ADDITIONAL TWEAKS
ARE NEEDED.
AND THEY WOULD LIKE TO COME AND
PRESENT ON MAY 18th.
SO WE WOULD BE ASKING FOR YOUR
CONSIDERATION TO MOVE AGENDA
ITEM TO NEXT MEETING.
THAT'S MAY 18th.
I WANT TO THANK OFFICE OF
HOUSING ON THE WORK.
WE HAVE BEEN EXCITING ABOUT THE
CONVERSATION TO COME.
SO WE KNOW THAT WILL BE A
ROBUST DISCUSSION.
WE WILL ALSO HAVE ON OUR
PRESENTATION TODAY, A SUMMARY
OF THE AMERICAN RESCUE PLAN
ACT, IMPLEMENTATION STRATEGIES.
I WANT TO THANK THE DEPARTMENTS
AS WELL, WHO HAVE BEEN
PROVIDING MONTHLY REPORT TO THE
CITY BUDGET'S OFFICE.
AND WE AS A CITY COUNCIL HAVE
BEEN RECEIVING THOSE.
HOWEVER, WE LIKE TO HAVE
QUARTERLY UPDATES ON THE
IMPLEMENTATION OF HOW THOSE
AMERICAN PLAN RESCUE DOLLARS
ARE GOING.
ALL OF WAS THIS OUR SEATTLE
RESCUE PLAN PASSED IN JULY OF
2021.
AND THEN EMBEDDED INTO OUR 2022
BUDGET THAT WE PASSED IN
NOVEMBER OF 2021.
SO GETTING AN UPDATE ON A
REGULAR BASIS ON THOSE
IMPLEMENTATION EFFORTS IS GOING
TO BE CRITICAL.
AND WE APPRECIATE THAT THEY HAD
DELAYED THEIR PRESENTATION TO
TODAY AT OUR REQUEST AS WELL.
AND FINALLY, WE WILL WRAP UP
WITH THE GRAND FINALE, WHICH IS
PART 2 OF OUR CONVERSATION.
LOOKING AT THE BUDGET FORECAST
THIS.
IS A REALLY EXCITING DAY.
AND I WANT TO THANK OUR COUNCIL
COLLEAGUES FOR ALL THE WORK
YOU'VE DONE IN ANTICIPATION OF
THIS CONVERSATION TODAY AND
CENTRAL STAFF'S INTERIM
DIRECTOR, ALLIE PENUCHI.
AND A COMPREHENSIVE MEDAL.
15 IN TOTAL.
THEY HELPED WITH THE
PRESENTATION THAT THEY WALKED
THROUGH.
AGAIN, I HAVE A FEW MORE WORDS
ABOUT THE SIX-YEAR FINANCIAL
PLAN AND OUTLOOK THAT WE'LL BE
SEEING IN OUR COMMITTEE TODAY.
BUT THIS IS SOMEWHAT HISTORIC
AND HOPEFULLY GROUNDBREAKING, A
NEW PATTERN OF TRANSPARENCY AND
ACCESSIBILITY FOR OUR
BUDGETING.
FOR MEMBERS OF THE PUBLIC AND
FOR CITY COUNCILMEMBERS, AS WE
NOW HAVE THE OPPORTUNITY TO
LOOK AT THE SIX-YEAR FORECAST
WELL IN ADVANCE OF ANY BUDGET
DELIBERATIONS.
THIS IS SOMETHING THAT I HAVE
BEEN LOOKING FORWARD TO HAVING
FOR THE LAST TWO YEARS, AFTER
LEARNING THAT IT WAS NOT
READILY AVAILABLE IN ADVANCE OF
OUR BUDGET MAKING.
SO LOOKING FORWARD TO THAT.
AGAIN, COLLEAGUES.
THOSE ARE THE THREE ITEMS ON
OUR AGENDA TODAY.
HOWEVER, I DO WANT TO GO AHEAD
AND GET THE AGENDA IN FRONT OF
US, SO I CAN MAKE THE MOTION TO
REMOVE AGENDA ITEM NUMBER 1, IF
THAT'S OKAY.
COLLEAGUES, I MOVE TO ADOPT THE
AGENDA.
IS THERE A SECOND?
>> SECOND.
>> THANK YOU VERY MUCH.
IT'S BEEN MOVED AND SECONDED.
I DO HAVE THE ONE AMENDMENT I
MENTIONED.
I WOULD LIKE TO REMOVE AGENDA
ITEM NUMBER 1 AND POSTPONE
COUNCIL BILL 120318 AND THE
DISCUSSION AND BRIEFING UNTIL
MAY 18th.
OUR NEXT MEETING AT 9:30 A.M.
IS THERE ANY OBJECTION TO
REMOVING AGENDA ITEM NUMBER 1
AND POSPONING THAT DISCUSSION
UNTIL MAY 18th?
HEARING NO OBJECTION, THANK YOU
VERY MUCH.
THE AGENDA WILL BE ADOPTED WITH
THE AMENDMENT.
HEARING NO OBJECTION, THE
AMENDED AGENDA IS ADOPTED.
FANTASTIC.
LET'S GO INTO PUBLIC COMMENT.
WE DO MAKE AN EFFORT TO MAKE
SURE THAT THERE IS PUBLIC
COMMENT AVAILABLE AT THE
BEGINNING OF EACH OF OUR
COMMITTEE MEETINGS.
WE'VE DONE THIS THROUGH THESE
SELECT BUDGET COMMITTEE AND
ALSO THROUGH THE FINANCE AND
HOUSING COMMITTEE MEETING.
EVERY COMMITTEE MEETING, YOU
CAN SIGN UP BEFORE OUR
COMMITTEE MEETING AND YOU CAN
ALSO SIGN UP DURING AND WHEN
THE PRESENTATION IS HAPPENING.
I JUST WANT TO EXPLAIN TO FOLKS
IF YOU DIDN'T GET TO DIAL IN
TODAY, YOU CAN ALWAYS E-MAIL
US.
AT THIS TIME, I AM NOT SEEING
ANYBODY SIGNED UP FOR PUBLIC
COMMENT.
AND WE APPRECIATE ALL THE FOLKS
WHO CALLED IN ON A REGULAR
BASIS.
BUT AGAIN, IF YOU'RE WATCHING
AND WANTED TO PROVIDE PUBLIC
COMMENT, YOU ARE WELCOME TO DO
SO AT
COUNCIL@SEATTLECOUNCIL.GOV.
>>> AT THIS TIME, SINCE THERE
IS NO COMMENT, OUR PUBLIC
COMMENT PERIOD WILL BE CLOSED.
AND WE ENCOURAGE PEOPLE TO SEND
IN THEIR PUBLIC COUNCIL TO
COUNCIL@SEATTLE.GOV.
>>> MADAM CHAIR, LET'S GO TO
COUNCIL ITEM NUMBER 2, AS
LISTED ON OUR AGENDA.
>> AGENDA ITEM 2.
UPDATE ON SEATTLE AMERICAN
RESCUE ACT SPENDING FOR
BRIEFING AND DISCUSSION.
>> THANK YOU AGAIN.
I'M EXCITED WE HAVE JULIE
DINGLEY.
ALONG WITH YOUR TEAM.
FROM YOUR TEAM, WE HAVE WILLIAM
CHEN.
AND EXCITED TO HAVE TANYA KIM,
DIRECTOR OF THE HUMAN SERVICES
DEPARTMENT, ALONG WITH JOSEPH
CASPER CASPERSKI.
AND AGAIN, INTERIM DIRECTOR
ALLIE PANUCHI.
THANKS FOR YOUR FLEXIBILITY AND
BEING ABLE TO JOIN US TODAY
INSTEAD OF AT OUR LAST
COMMITTEE MEETING.
I AM VERY EXCITED THAT WE HAVE
THE OPPORTUNITY TO WALK THROUGH
THE SEATTLE RESCUE PLAN ACT
FUNDS WITH YOU TODAY.
AND JULIE IN YOUR PREVIOUS ROLE
AS A DEPUTY BEFORE BEING
DIRECTOR AT THE BUDGET OFFICE,
IT WAS A PLEASURE TO WORK WITH
YOU ON THE SEATTLE RESCUE
PRESENTATION AND TO HAVE WORKED
WITH YOU AS WELL, AS WE DEVELOP
THE 2022 BUDGET, WHICH INCLUDES
SEATTLE RESCUE PLAN.
VERY THANKFUL FOR THE MONTHLY
UPDATES THAT WE RECEIVE.
AND IN THOSE UPDATES, WE HAVE
BEEN ABLE TO TRACK PROGRESS,
NOT ONLY WHAT FUNDS HAVE BEEN
ALLOCATED BY THE COUNCIL AND
THE MAYOR.
BUT THEN HOW THE SPENDING IS
GOING.
PROBABLY MORE IMPORTANT AREA
FOR FOLKS WHO ARE IMPACTED BY
THE EFFECTS OF COVID.
AND WE HAVE BEEN ABLE TO SEE IN
THOSE MONTHLY REPORTS, FUNDING
THAT HAS GONE OUT THE DOOR AND
MONEY THAT IS ALSO ENCUMBERED.
I WILL NOTE THAT SINCE YOU HAVE
BEEN THE DIRECTOR AND UNDER THE
NEW ADMINISTRATION, WITH THE
MAYOR HARRELL, WE'VE SEEN MORE
OF THOSE DOLLARS GO OUT THE
DOOR.
AND MORE BECOME ENCUMBERED,
WHICH IS EXCITING.
AND I THINK WE WILL TAKE THE
REST OF TODAY TO HEAR AN UPDATE
FOR YOU, FOR FIRST QUARTER
2022.
AND ALSO GET A CHANCE TO ASK
SOME QUESTIONS ABOUT WHERE
THINGS MAY STAND, IF THEY'RE
CURRENTLY ENCUMBERED AND NOT
YET SPENT.
OR IF ALL THE FUNDS ARE NOT YET
ENCUMBERED YET.
BECAUSE WE KNOW THE NEED IS
INCREDIBLY GREAT OUT THERE.
JUST AS A REMINDER, THESE
INVESTMENTS ARE CRITICAL TO OUR
COMMUNITY MEMBERSWHO HAVE
TREMENDOUS NEED.
NOT JUST BECAUSE OF THE
PANDEMIC, BUT BECAUSE OF NEEDS
THAT HAVE BEEN COMPOUNDED.
ESPECIALLY THINKING ABOUT FOLKS
OF COLOR, MEMBERS OF THE LGBTQ
COMMUNITY, SMALL BUSINESSES,
WORKERS WHO WERE IN MANY WAYS,
SUFFERING DUE TO THE ECONOMIC
INEQUALITIES THAT WE SAW IN OUR
COMMUNITY, AND DISPARATE
ACCESS.
AND HAS DISPROPORTIONATELY
AFFECTED THOSE OF COLOR.
I'LL LET YOU DIG INTO THE
DETAILS.
AND I WANT TO THANK YOU FOR
BEING HERE TO HELP US WALK
THROUGH HOW IT'S GOING WITH
GETTING THESE DOLLARS OUT.
AND AGAIN, A HUGE NOTE OF
APPRECIATION FOR OUR
CONRESSIONAL PARTNERS WHO MADE
THE AMERICAN RESCUE PLAN ACT
POSSIBLE.
AND WE WILL CONTINUE TO CALL
FOR MORE THROUGH BUILD BACK
BETTER.
WITH MORE, I'LL TURN IT OVER.
>> THANK YOU FOR THE WARM
INTRODUCTION AND FOR THE
GRATITUDE FOR ALL THAT WE'VE
HAD IN THE SEATTLE RESCUE PLAN
INVESTMENTS.
THIS SHOW IS NOW BEING RUN BY
WILLIAM CHIN.
SO I AM HERE JUST TO INTRODUCE
HIM.
AND I APPRECIATE HIS INCREDIBLE
HARD WORK IN LEADING THE
FEDERAL FUNDS TEEN WITHIN THE
BUDGET OFFICE THAT IS REALLY
COORDINATING CITY WIDE TO MAKE
SURE WE'RE STAYING ON TOP OF
THESE INVESTMENTS, DOING OUR
PERFORMANCE REPORTING.
REALLY JUST INCREDIBLE WORK TO
WILLIAM AND TEAM AND EXCITED TO
BE HERE AS HE PRESENTS THE
LATEST WORK TO YOU.
>> WONDERFUL.
THANKS SO MUCH.
AND WELCOME, WILLIAM.
THANKS AGAIN TO YOU FOR ALL THE
WORK YOU'RE DOING.
WE CAN DO THAT.
>> YES.
>> WONDERFUL.
THANKS SO MUCH.
>> IS THAT SHOWING UP FOR YOU?
>> THAT LOOKS GREAT.
THANK YOU.
GOOD MORNING, CHAIRMAN
MOSQUEDA, COUNCILMEMBERS, AND
THANKS FOR AN OPPORTUNITY TO
GIVE AN UPDATE ON THESE
GOVERNMENT-RELATED FUNDS AND IN
PARTICULAR THE ARBIT FUNDS
WHICH WE APPROVED IN THE
SEATTLE RESCUE PLAN.
ASK ALSO, GIVING AN UPDATE ON
WHERE FEMA REIMBURSEMENTS ARE
IN THE PIPELINE.
SO BRIEFLY, WITH THIS
PRESENTATION, WE ARE CONTINUING
TO MAKE PROGRESS ON BUILDING
NECESSARY CAPACITY.
CONTRACTING PROVIDERS AND
SPENDING THE FUNDS.
BUT ALSO WANT TO SHARE AT THE
SAME TIME, WE'VE ALSO KICKED
OFF A NEW PHASE OF SEATTLE
RESCUE AND PRESENTATION.
THAT IS PERFORMANCE EVALUATION.
WITH THIS, NOT ONLY ARE WE
FULFILLING THE U.S. TREASURY
EXPECTATION.
BUT ALSO ADVANCING OUR OWN
INTEREST IN UNDERSTANDING WHAT
WE DO TO DO BETTER.
AND WE CAN SHARE THAT WITH THE
CITY AND THE POSSIBLE.
NOW, LOOK AT THE VARIOUS
FEDERAL FUNDS THAT WE HAVE IN
PLAY.
MOSTLY THE FUNDING WE'RE
TALKING ABOUT TODAY IS THE 300
MILLION OF FUNDING THAT SEATTLE
HAS RECEIVED FROM THE ARPA
BILL.
THE STATE AND COUNTY HAVE ALSO
RECEIVED MILLIONS OF ARPA
DOLLARS.
AND THAT MAY PASS THROUGH CITY.
ONE IS TO COME.
AND JUST NEEDS A RESPONSE TO
SLIDE.
IT'S JUST EASIER.
WE'RE ALSO CONTINUING TO WORK
THROUGH THE FEMA REIMBURSEMENT
PIPELINE ON THEELIGIBLE
EXPENSES.
AND ON THE INFRASTRUCTURE BILL,
THEY WILL BE ANNOUNCING
DEADLINES THROUGHOUT THE YEAR.
AND CITY DEPARTMENTS ARE UNDER
WAY, ANALYZING THE BILL FOR
OPPORTUNITIES AND PREPARING TO
APPLY.
ON FEMA UPDATE.
OF THE $27 MILLION OF
POTENTIALLY EMERGENCY COSTS IN
THE PIPELINE FOR FEMA
REIMBURSEMENT.
THEY HAVE STATUSES RANGING FROM
PRESUBMISSION TO OFFICE OF
EMERGENCY MANAGEMENT.
TO UNDER REVIEW, TO STATE
REVIEW, AND FEMA REVIEW.
WE'VE HAD OVER $12 MILLION
WORTH APPROVED BY FEMA.
AND HALF MILLION OF THAT HAS
BEEN RECEIVED SO FAR.
SEPARATELY, ANOTHER 13 MILLION
OF INVOICES ALSO SUBMITTED TO
PUBLIC HEALTH SEATTLE, KING
COUNTY.
AND OF THAT 13 MILLION, WE'VE
RECEIVED OVER $12 MILLION IN
REIMBURSEMENTS.
ALL ARE FACTORED INTO THE
REVENUE PRODUCTIONS.
PROTECTIONS.
THEY ARE COMPLICATED.
THAT'S THANKS TO RULES AND
REQUIREMENTS THAT CONTINUE TO
EXPAND.
BUT AT THE SAME TIME, AS WE'RE
CONTINUING TO IMPLEMENT THESE
PROGRAMS AND TRACK SPENDING AND
GATHER NEWLY REQUIRED
INFORMATION TO REPORT TO
TREASURY.
WE'VE ALSO LAUNCHED REQUIRED
EVALUATION WORK FOR THE
PROGRAMS.
SO ON BOARD.
THEY'RE EXCITED.
AND WORK IS UNDER WAY WITH
THEM, COLLABORATING WITH
DEPARTMENTS.
AND THAT WILL ENABLE US TO
UNDERSTAND AND SHARE THE
IMPACTS THAT OUR INVESTMENTS
HAVE HAD AND WILL HAVE.
SO THIS SLIDE DESCRIBES THE
VARIOUS REPORTS THAT WE'RE
PRODUCING.
AND LAST WEEK, END OF APRIL,
THE CITY SUCCESSFULLY SUBMITTED
ITS SECOND QUARTERLY PROJECT
AND EXPENSE REPORT TO TREASURY.
CLIFFER DEPARTMENTS AND SEATTLE
RESCUE PLAN TEAM FOR THEIR
TEAMWORK AND HARD WORK, PULLING
THAT TOGETHER, STARTING OVER A
MONTH AGO.
AND IN FACT, ONE OF OUR
COLLEAGUES AT CITY WIDE
ACCOUNTING AND PAYROLL/FAS,
DOUG HOR MEL CRANE, HAS BEEN
SHARING WITH OTHER
JURISDICTIONS WITH MANAGING THE
CHALLENGING LODGISTICS AT THIS
YEAR'S NATIONAL CONFERENCE OF
THE GOVERNMENT FINANCE
OPERATIVE ASSOCIATION.
THESE FUNDS ARE DIFFICULT TO
ADMINISTER.
AND SEATTLE IS SEEN AS A
LEADING CITY IN OUR
IMPLEMENTATION.
SO THAT'S GREAT.
>> THAT'S REALLY EXCITING.
PLEASE PASS ON OUR
CONGRATULATIONS AND
APPRECIATION AS WELL.
AND LOOK FORWARD TO
HIGHLIGHTING THAT.
AND IF THERE IS THE POSSIBILITY
OF TUNING IN, I'D LOVE TO DO
THAT.
WE HAVE BEEN INVITED TO A
NUMBER OF NATIONAL FORUMS TO
TALK ABOUT THE APPROPRIATIONS.
AND WHERE THEY'RE GOING.
AND THE IMPORTANCE OF THOSE AND
HOW THOSE DOLLARS GET OUT THE
DOOR IS PROBABLY THE MOST
IMPORTANT PART.
SO THANKS SO MUCH FOR THE WORK
THAT YOU'VE DONE AND PLEASE
PASS ON OUR CONGRATULATIONS TO
THEM AS WELL.
>> GREAT.
THANK YOU.
AND WE WILL DO THAT.
THE OTHER OF THE TWO REQUIRED
REGULAR REPORTS OF TREASURY, IS
THE ANNUAL RECOVERY PLAN
PERFORMANCE REPORT WANT.
THAT PROVIDES A HIGH-LEVEL LOOK
AT OUR ENTIRE PLAN FOR CLIFFER
AND SPENDING.
BUT REALLY FOCUSES ON METRICS
AND RESULTS OF OUR PERFORMANCE.
AND THE NEXT REPORT WILL BE DUE
AT THE END OF JULY.
AND WE'RE LOOKING FORWARD TO
HAVING MORE TO SHARE.
WE ARE ALSO LOOKING AT PUBLIC
SPENDING PORTAL. TELL BE ON
SEATTLE PLAN RESCUE PERFORMANCE
SPENDING RESULTS.
AND WE'LL LAUNCH IN PHASES.
THE FIRST PHASE IS SPENDING
PROGRESS.
AND WE'VE GOT A LAUNCH TARGET
AT THE BEGINNING OF JUNE.
AND IN THE SECOND PHASE, WE'LL
ADD PERFORMANCE TO THE PORTAL,
WITH LAUNCH PROJECTED AT THE
BEGINNING OF AUGUST.
LINING UP WITH WHEN WE GET THAT
JULY REPORT OUT.
THESE NEXT TWO SLIDES ARE A
REMINDER OF COUNCILMEMBER
HERBOLD HAS A QUESTION.
>> THANKS SO MUCH.
>> THANK YOU SO MUCH.
I MISSED THE INSTRUCTIONS AT
THE BEGINNING.
I DO HAVE A COUPLE OF QUESTIONS
ON SLIDE 3 AND 4.
FIRST, JUST AS IT RELATES TO
THE FOOD ASSISTANCE, I
APPRECIATE THE REFERENCE TO
COUNCIL'S SLIDE, TRYING TO FIND
OUT WHAT WE KNOW ABOUT HOW MUCH
ARPA FUNDS MAY STILL PASS
THROUGH TO SEATTLE AND JUST
WONDERING IF YOU HAVE A PREVIEW
OF WHAT YOU MIGHT KNOW ABOUT
THAT.
AND THEN SECONDLY, JUST
INTERESTED TO KNOW WHAT WE'VE
LEARNED ABOUT FEMA
REIMBURSEMENT, DRESSED ON SLIDE
4.
HAVE WE EXPERIENCED A CHANGE AS
IT RELATES TO TIMELINESS OF
RECEIVING APPROVAL OF
REIMBURSEMENTS FROM FEMAFROM
OUR EARLY EXPERIENCES.
>> THOSE ARE GREAT QUESTIONS.
I CAN GIVE A LITTLE BIT ON
BOTH.
CERTAINLY MORE DETAIL AS THEY
COME INTO THE ACTUAL RESPONSE.
BUT IN THEIR BUDGET THIS YEAR,
THE STATE APPROPRIATED AN
ADDITIONAL $58 MILLION FOR A
PROGRAM TO SEND SUPPORT TO
LOCAL FOOD ASSISTANCE
ORGANIZATIONS AROUND THE STATE.
SO THERE'S A LOT OF MONEY THAT
THEY'RE PUTTING OUT TO
ORGANIZATIONS AROUND THE STATE.
AND PREVIOUS ROUNDS OF IT HAVE
REACHED ORGANIZATIONS SERVING
THE SEATTLE AREA.
AS FOR THE FEMA QUESTION, WHAT
WE'RE STARTING TO SEE NOW ARE
THESE BIG PROGRAMS, BIG
REIMBURSEMENT REQUESTS THAT WE
HAD PUT IN FOR 2020 PROJECTS
COMING THROUGH NOW.
IT'S A PRETTY LONG TIME LINE
STILL.
BUT THEY'RE STARTING TO SHOW
RESULTS.
>> THANK YOU.
>> OKAY.
>> WILLIAM.
I JUST WANT TO TAKE A QUICK
SECOND TO THANK YOU FOR THAT.
AND IF FOLKS DO HAVE BURNING
QUESTIONS THROUGH THE
PRESENTATION, PLEASE GO AHEAD
AND RAISE YOUR HAND.
THANK YOU, COUNCILMEMBER
HERBOLD FOR THE REMINDER.
THE PRESENTATION IS 24 SLIDES.
SO WE WANT TO MAKE SURE TO GET
THROUGH ALL OF THEM.
WE DO HAVE AN HOUR FOR THIS
NOW.
SO WE WILL MAKE SURE TO WALK
THROUGH EACH SLIDE, BUT IF YOU
DO HAVE A BURNING QUESTION,
IT'S PROBABLY BEST TO ASK
DURING SO IT DOESN'T GET LOST
TOWARDS THE END.
AND I ALSO WANT TO THANK THE
DEPARTMENT DIRECTORS WHO ARE
WITH US HERE TODAY.
I KNOW I HAD A FEW QUESTIONS.
AND IF THERE'S QUESTIONS THAT
NEED TO BE TAKEN BACK TO
VARIOUS DEPARTMENTS, WE'LL MAKE
SURE THERE IS A RUNNING LIST AS
WELL.
OKAY.
LET'S GO AHEAD.
>> THESE NEXT TWO SLIDES ARE A
REMINDER OF THE VARIOUS SEATTLE
RESCUE PLAN PACKAGES THAT
ACCEPTED THESE FEDERAL GRANT
MONIES.
YOU'VE SEEN THESE BEFORE.
AND THEN THIS SLIDE, THE CHART
SHOWS THE CHANGE IN STATUS OF
SPENDING SINCE OUR JANUARY 1
UPDATE TO THIS COMMITTEE.
AND SINCE JANUARY, ON SR51
PROGRAM, IT SAYS ADDITIONAL
$2.5 MILLION IN SPENDING AND
ENCUMBRANCES.
AND OTHERS THAT AREN'T IN THE
SYSTEM YET.
$8.3 MILLION OF THIS CHANGES IN
MORE SPENDING RECORDED.
AND YOU CAN SEE IN THIS CHANGE
FROM THAT YELLOW SLICE IN THE
JANUARY COLUMN, REDUCING AND
TURNING INTO MORE BLUE AND
GREEN.
THAT'S A CHANGE MOVING FROM IN-
PROCESS CONTRACTS TO NOW BEING
SPENT.
THIS TABLE IS JUST NUMBERS
BEHIND THAT COLUMN CHART.
AND THIS IS A TABLE SHOWING.
>> CAN YOU GO BACK ONE VIDE FOR
ME?
>> YEP.
>> SO I'M LOOKING AT SLIDE 10
HERE.
JUST TO CONFIRM.
THIS MEANS WE HAVE ABOUT 40
MILLION OF APPROPRIATED SEATTLE
RESCUE PLAN DOLLARS THAT ARE
STILL NOT IN PROGRESS.
IS THAT CORRECT?
>> THAT'S RIGHT.
>> OKAY.
AND CAN YOU CONFIRM THAT THAT
DOLLAR AMOUNT IS UPDATED AS OF
THIS PRESENTATION AND WHAT IT
MIGHT MEAN TO NOT BE IN
PROGRESS?
SO.
>> UH-HUH.
>> WHAT'S THE RANGE OF WORK
THAT NEEDS TO GET DONE IN ORDER
FOR IT TO BE IN PROGRESS AND ON
ITS WAY OUT THE DOOR?
>> YEAH.
SO THIS IS UPDATED AS OF
SHORTLY AFTER TWO WEEKS AGO,
BACK WHEN WE WERE PREPARING FOR
THE LAST COMMITTEE.
IT VARIES.
IT INCLUDES A LARGE CHUNK.
YOU'LL SEE IT ON THE LATEST
SLIDE, WHICH IS FOR AFFORDABLE
HOUSING.
AND THAT'S PENDING HOUSING AND
URBAN DEVELOPMENT.
FEDERAL AGENCY'S APPROVAL OF
SEATTLE'S PLAN.
THAT'S A LARGE CHUNK OF IT.
SOME OF THESE THINGS ARE
PROGRAMS THAT ARE IN PROGRESS
OR PLANNING WITH DEPARTMENTS.
WE MAY NOT SEE THAT IN OUR
SYSTEM YET.
AND THE OTHER DEPARTMENTS MAY
NOT HAVE COMMUNICATED TO US.
OR ACTUALLY, WE'VE ALREADY
GOTTEN AGREEMENT WITH THE OTHER
ORGANIZATIONS IN PLACE.
SOME OF THAT ISN'T REALLY SUPER
QUICKLY COMMUNICATED IN OUR
SYSTEM OR IN OUR REGULAR
MONTHLY UPDATES.
SO THEY TRY TO STEP SHARE WITH
US AS MUCH AS THEY CAN.
ABOUT, OKAY, THE SYSTEM SHOWS
THE SPENDING.
THE SYSTEM SHOWS CONTRACTS THAT
HAVE BEEN PUT INTO THAT SYSTEM.
WE'VE ALSO GOT THESE VERBAL OR
OTHERWISE NEGOTIATED AGREEMENTS
WITH DEPARTMENTS, BUT THEY MAY
NOT SHARE EVERY LAST BIT.
THAT'S HAPPENED THERE.
AND I'LL SHARE A FEW OF THESE
IN THE ECONOMIC RECOVERY
SECTION.
>> VERY HELPFUL.
THANK YOU SO MUCH.
COUNCILMEMBER NELSON?
>> AND THIS CAN WAIT.
THANK YOU VERY MUCH.
YOU JUST SAID YOU WERE GOING TO
TALK ABOUT ECONOMIC RECOVERY
SECTION LATER.
I AM ZEROING IN ON THE 45%,
WHICH IS BETTER THAN THE 38% IN
THE SLIDE LAST TIME.
SO I KNOW THAT PROGRESS IS
BEING MADE.
AND IT'S A CHALLENGE TO GET
MONEY OUT AND ENCUMBERED.
SO I WANTED LATER IN THE
PRESENTATION TO TALK ABOUT THAT
NUMBER, 45% AND WHAT WE CAN
EXPECT IN THE NEXT QUARTER OR
SO.
THANKS.
>> THANK YOU.
I'LL KEEP MOVING THEN.
SEATTLE RESCUE PLAN 3. SO AS
CHAIR MOSQUEDA NOTED, IT'S PART
OF THE 2022 BUDGET.
AND SECOND IS FUNDING.
THIS IS SIMILAR TO SRP1.
COUPLE OF THINGS TO NOTE.
MUCH IS ALLOCATED TO PAY FOR
CITY STAFF OVER THE NEXT
SEVERAL YEARS, CARRYING OUT
THINGS LIKE THE QUEEN CITY
INITIATIVE, ADMINISTERING THE
CLFR FUNDS, DOING EVALUATION.
SO WE'VE MARKED THAT IN
PROGRESS, BECAUSE THAT'S CITY
STAFFING.
WE HAVE THAT WHERE THAT'S
GOING.
THE OTHER BIG THING HERE IS
THAT 66 MILLION OF CLFR WAS
USED FOR ONE-TIME BOLSTER FOR
GOVERNMENT SERVICES.
SO THAT'S A LARGE CHUNK THAT IS
ACCOUNTED FOR.
AND YOU CAN SEE THAT IN THE
LOWER NUMBER ALSO IN OUR GRAND
TOTAL.
THE ALLOCATION.
>> AND JUST TO NOTE THERE.
IT HARKENS BACK TO THE
CONVERSATION WE HAD AT THE
BEGINNING OF THIS, WHEN WE
INVITED NATIONAL PARTNERS IN.
SO TALK ABOUT WHAT THEY SAW
FROM THE LAST SESSION.
AND WHAT THEY INVESTED IN CORE.
SAW FAST RECOVERY FOR BOTH THE
PRIVATE SECTOR AND CONTINUED
IMPLEMENT AND PROSPERITY FOR
THE ENTIRE JURISDICTION WAS
MORE POSSIBLE WHEN THOSE
GOVERNMENT SERVICES DIDN'T SEE
DRAMATIC CUTS.
YOU KNOW, I WANTED TO BRING
THAT UP, BECAUSE IT WAS TWO
YEARS AGO NOW THAT WE HAD SOME
OF THOSE NATIONAL
PRESENTATIONS.
AND THE DATA WAS REALLY CLEAR
FROM THAT RECESSION THAT WE SAW
ABOUT 10 YEARS AGO.
SO I JUST WANTED TO TIE IN THE
NEXT AS TO THE PRIVATE MARKET
AS WELL, AND OUR OVERALL HEALTH
OF THE LOCAL ECONOMY.
>> THAT'S A GREAT POINT.
AND IT IS ALSO FOR OUR WORK,
REACHING OUT TO THE COMMUNITY
TO RECOVER.
ABSOLUTELY.
THE REMAINDER OF THIS
PRESENTATION, I'LL BE DOING
UPDATES ON SOME SPENDING AREAS.
ON THIS SLIDE IS THE CATCH
ASSISTANCE PROGRAM, WHICH
PREVIOUSLY YOU KNEW ALREADY,
COMPLETED.
WHAT'S SHOWING UP HERE THE NGO
AND WIRA, TO IMPLEMENT THE
PROGRAM.
PREVIOUS NOW REBRANDED AS
SCALER FUND.
HAS PROVIDED FINAL RESULTS ON
THIS PROGRAM.
INCLUDING INFORMATION RECEIVED
ABOUT ASSISTANCE.
AND THESE PIE CHARTS SHOW THIS,
RAISING UP THE CITY AND
ENVIRONMENT APPLICATION.
PHASE 1 WAS ABOUT REACHING OUT
TO RECIPIENTS OF THE 2020 CASH
ASSISTANCE PROGRAM.
FOCUSED ON PEOPLE WHO WEREN'T
ELIGIBLE TO BENEFIT FROM
FEDERAL CASH ASSISTANCE
PROGRAMS.
SO AS SUCH, MAKES SENSE THAT
THIS SPACE REACHED
OVERWHELMINGLY LATIN AMERICAN
AND IMMIGRATION POPULATIONS.
ON THE OTHER HAND, PHASE 2 WAS
AN APPLICATION, OPEN
APPLICATION AND YOU CAN SEE A
MUCH WIDER DISTRIBUTION OF
RECIPIENTS.
THE PIE CHART ON THE RIGHT
SHOWS THE PERCENTAGE OF
RECIPIENTS WHO WERE
EXPERIENCING VARIOUS
CHALLENGES.
AND MOST NOTABLY, YOU CAN SEE
UNSTABLE HOUSES.
LOST JOBS, LOST INCOME.
WE'RE GOING TO HAVE MORE TO
COME LIKE THIS ON OTHER SRP
PROGRAMS IN THE AUGUST UPDATE.
AND WE'LL HAVE MORE TO SHARE
ABOUT WHAT OUR PROGRAMS HAVE
ACCOMPLISHED BY THEN.
>> THANK YOU, COUNCILMEMBER
HERBOLD.
>> THANK YOU.
I KNOW I OFTEN RETURN TO THIS
THEME WHEN WE TALK ABOUT THIS
PROGRAM.
I APPRECIATE KNOWING THAT
THERE'S GOING TO BE A DEEPER
DIVE ON THE PROGRAM.
I WANT TO JUST FLAG THAT MY
OFFICE HAS BEEN WORKING WITH
CENTRAL STAFF TO SEE IF IT'S
POSSIBLE TO DIG INTO, DEEPER
INTO THE DATA, TO DETERMINE HOW
WELL THE FUND REACHED ALL OF
THE PRIORITY POPULATIONS.
I'VE EXPRESSED A CONCERN IN THE
PAST THAT ONE OF THE PRIORITY
POPULATIONS INTENDED TO RECEIVE
THIS DIRECT CASH ASSISTANCE WAS
ARTS AND CULTURAL WORKERS, WHO,
AS WE ALL KNOW, HAVE BEEN AMONG
THE HARDEST HIT BY THE
PANDEMIC.
AND SORT OF THE INITIAL REVIEW
OF THE DATA THUS FAR.
DOES NOT DEMONSTRATE THAT THE
MODEL USED TO GET THESE DOLLARS
OUT THE DOOR WAS A MODEL THAT
ENSURED THAT, YOU KNOW, BEYOND
TELLING, WORKING WITH ARTS
ORGANIZATIONS TO DO OUTREACH,
TO TELL PEOPLE THAT YOU COULD
GO TO SCHOLARSHIP JUNKIES TO
APPLY FOR THIS.
IT DOESN'T APPEAR FROM OUR
FIRST LOOK AT THE DATA THAT
MANY ARTS AND CULTURAL WORKERS
WERE ACTUALLY RECIPIENTS OF
THIS FUNDING.
THERE'S A COUPLE OF DIFFERENT
CUTS OF ANALYSIS, I THINK, THAT
NEEDS TO BE DONE.
BUT I'M JUST WANTING TO FLAG.
I HOPE THAT WE CAN WORK WITH
TWO THE EXECUTIVE IN DOING THIS
DEEPER DIVE, THAT IT SOUNDS
LIKE YOU'RE ALREADY WORKING ON.
>> THANKS, COUNCILMEMBER
HERBOLD.
WE WOULD HOPE TO.
I UNDERSTAND THAT SCHOLAR FUND,
THE APPLICATION PROCESS THAT
THEY TOOK DIDN'T NECESSARILY
ASK ABOUT THE INDUSTRY.
SO IT'S HARD TO KNOW HOW MANY
OR HOW FEW OF THE BULK OF THE
RECIPIENTS WEREN'T ARTS AND
CULTURAL.
BUT FOR THE FEW WORKING IN
SEATTLE AND LIVING OUTSIDE.
THEN THEY DID ASK.
AND YOU COULD SEE IT, BUT IT
WAS A RELATIVELY SMALL GROUP.
>> DR. KEN, I SEE YOU ON THE
SCREEN AS WELL.
DID YOU HAVE ANYTHING ELSE YOU
WOULD LIKE TO ADD AS WELL?
AND THANK YOU, VICE CHAIR
HERBOLD FOR ADDING.
>> THE ONLY THING I'D LIKE TO
ADD, THE OFFICE OF AG AFFAIRS
HAS THE ORGANIZATION FOR
SCHOLARSHIP JUNKIES IS THAT WE
DID PARTNER WITH ARTS AND
CULTURE AND HAD COMMUNITY
ENGAGEMENT CONTRACTS WITH ARTS
SORKS.
SO I'M SEEING FROM SOME OF MY
FOLKS THAT THERE IS DATA
AVAILABLE, THAT WE CAN HELP
PROVIDE.
AND IT'S AROUND THE CREATIVE
SPACE OR SECTOR.
SO WE'LL BE SURE TO FOLLOW UP
AND MAKE SURE WE PROVIDE THAT
INFORMATION.
IN PARTNERSHIP WITH OFFICE OF
ARTS AND CULTURE.
>> GREAT.
THANK YOU.
I KNOW THERE'S A LOT OF
INTEREST IN MAKING SURE THE
FOLKS IN THE CREATIVE ECONOMY
GET THESE DOLLARS AS DIRECTED.
WE LOOK FORWARD TO THAT UPDATE.
AND THANKS FOR FLAGGING THAT
AGAIN, VICE CHAIR.
LET'S CONTINUE.
>> OKAY.
AND THE NEXT SLIDE SHOWS SOME
PROGRAMS.
THE FIRST ITEM IS FROM SEATTLE
RESCUE PLAN 1.
IT IS ENTIRELY OBLIGATED AND
ABOUT A THIRD OF IT IS BUDGET
CONSENT.
AND THAT'S ONGOING.
THE NEXT FEW ARE FROM SEATTLE
RESCUE PLAN 3. AND SEATTLE
RESCUE PLAN 3 ALLOCATED FUNDING
EARLIER IN COVID PROGRAMS IN
2022.
AND 10 MILLION HAS BEEN
ENCUMBERED SO FAR FOR THE
CONTINUATION OF THIS PROGRAM
SINCE SPENDING IS UNDER WAY.
AND THE LAST PROGRAM ON THE
SLIDE IS FOR SUPPORT TO LOW-
INCOME AMERICAN INDIAN AND
ALASKAN NATIVE PEOPLE.
EXPECTED TO BEGIN IN THE LATE
SUMMER.
ON HOUSING AFFORDABILITY.
AFFORDABLE HOUSING RAPID
ACQUISITIONS HAVE A COUPLE OF
DIFFERENT GRANTS HERE.
THE CLFR FUNDS ARE ALL
COMPLETELY ALLOCATED AND SPENT
FOR SMALL PIECES ON ITS WAY TO
PHOENIX TO PURCHASE NEW
MULTIFAMILY BUILDINGS.
AND TOTAL OF 198 UNITS.
AMONG THEM WITH OCCUPANCY, OPEN
FOR OCCUPANCY THIS YEAR.
I MENTIONED EARLIER IN THE
PRESENTATION.
CURRENTLY AWAITING HUD APPROVAL
FOR THE PLAN.
EMERGENCY RENTAL ASSISTANCE.
WHEN FUNDS HAVE BEEN COMPLETELY
NEARLY SPENT.
AND YEAR A TWO FUNDS.
WITH UNITED WAY HAVING
COMPLETED THEIR SPENDING.
AND LASTLY, ALL THREE MILLION
OF CLFR FUNDS FOR AFFORDABLE
HOUSING PROVIDED CAPACITY
BUILDING ARE NOW UNDER
CONTRACT.
>> SO JUST A FEW QUESTIONS ON
THIS SLIDE.
AND THANKS FOR FLAGGING THE
HOME AND GRANT BEING IN H.U.D.,
HUD'S APPROVAL.
WE KNOW THAT THEY'VE CHANGED
THEIR APPLICATION PROCESS SORT
OF MIDWAY.
SO LOOK FORWARD TO GETTING
FINAL APPROVAL IT FROM THEM FOR
THE GOOD WORK THAT OFFICE OF
HOUSING IS DOING.
AND THIS IS AN AREA THAT HAS
CAUGHT A LOT OF ATTENTION
ACROSS THE NATION AS WE TALKED
TO LOCALS ACROSS THE CITIES.
PEOPLE ARE VERY IMPRESSED BY
THE RAPID ACQUISITION PROGRAM
THAT, IS EMBEDDED IN THE USE OF
THESE DOLLARS.
AND I JUST WANTED TO FLAG FOR
FOLKS, WITHIN THE LAST YEAR
ALONE, IN COMBINATION BETWEEN
FEDERAL DOLLARS AND STATE
DOLLARS, WE HAVE BEEN ABLE TO
TAKE SEVEN PROPERTIES OFF THE
PRIVATE MARKET AND CONVERT
THOSE SEVEN PROPERTIES INTO 400
UNITS OF HOUSING BY USING RAPID
ACQUISITION DOLLARS.
IT'S A GREAT EFFORT,
PARTNERSHIP WITH THESE FEDERAL
DOLLARS.
AND MORE TO COME, HOPEFULLY,
ONCE WE GET THE HOME DOLLARS
APPROVED.
IS THERE ANYTHING THAT YOU NEED
FROM US ON THE HUD APPROVAL?
OR ARE WE JUST IN WAIT MODE
RIGHT NOW?
>> AS I UNDERSTAND IT, WE'RE IN
WAIT MODE.
AND YOU KNOW, JUST OPENED UP
THEY NEED TO APPROVE OUR PLAN.
>> OKAY, GREAT.
I DO HAVE A QUESTION FOR THE
EMERGENCY RENTAL ASSISTANCE FOR
E.R.A.2.
WHAT PERCENTAGE OF APPLICANTS
WILL THE FUNDS SERVE?
AND WHEN WILL WE KNOW THAT THE
ENTIRE FUNDS HAVE BEEN SPENT?
>> I DON'T HAVE THAT
INFORMATION OFF THE TOP OF MY
HEAD.
SO I'LL NEED TO THIS IS FOR MUL
BUILDINGS WITH 198 UNITS.
AND
[ INAUDIBLE ] HOW MANY OF THOSE
UNITS WILL BE FOR SHELTER AND
HOW MANY FOR PERMANENT HOUSING.
AND WHAT DO WE KNOW MORE
SPECIFICALLY AROUND THEIR OPEN
DATES?
>> OPERATES THE SHELTER FOR
NOW.
BUT THEN EVENTUALLY AFTER THEY
FIGURE THIS OUT, IT WILL
TRANSITION TO AFFORDABLE
HOUSING.
>> WE HAD OTHER PROBLEMS BUT
CAN GET BACK TO YOU ON THAT.
>> THANK YOU.
>> AND SPOOKING OF SHELTERS.
THIS SLIDE IS ABOUT
HOMELESSNESS AND THE CITY'S
INVESTMENTS IN KCRHA.
IT HAS STARTED OPERATING AND
HAS THE OVERSIGHT OF THE CITY'S
HOMELESSNESS CONTRACTS.
AND THIS TABLE SHOWS THE CLFR-
FUNDED PIECES.
THIS HAS BEEN SIGNED.
EIGHT CONTRACTS EXECUTED.
AND THREE MORE UNDER REVIEW.
AND THEN RAPID REHOUSING HAS
ABOUT A MILLION CONTRACTS WITH
REMAINDER FOR NOFA IN MAY.
NO EXPECTED RELEASES IN MAY.
NOFA IN APRIL.
EXPECTED TO SIGN THE CONTRACT
IN MAY.
AND THE VILLAGES WAS EXPECTED
TO BE AT THE END OF APRIL.
>> ALL RIGHT, FOLKS.
YEAH.
LET'S STAY ON SLIDE 16 FOR A
SECOND.
ANY QUESTIONS FROM OUR
REPRESENTATIVES ON THE RHA
BOARD?
COUNCILMEMBERS HERBOLD OR
LEWIS?
I HAVE A QUICK QUESTION HERE.
SO THERE'S ROUGHLY $9 MILLION
IN UNSPENT RG DOLLARS.
WE ALSO ALLOCATED FOR TINY
HOUSE VILLAGES THAT HAVE NOT
BEEN SPENT.
I BELIEVE THAT WAS $2.4 MILLION
FOR BOTH THE CAPITOL AND
OPERATING FOR THIS SHARE OVER
AT RHA AS WELL.
WE ALL ARE VERY INTERESTED, AS
HAS BEEN NOTED BY MY COLLEAGUES
IN MAKING SURE THAT WE'RE ABLE
TO SUSTAIN JUST CARE THROUGH
THE END OF THE YEAR.
I SEE JOSEPH, WHO HAS JOINED US
ON SCENE.
LOOKING FORWARD TO HEARING AN
UPDATE ON HOW THE KING COUNTY
HOMELESSNESS AUTHORITY IS
PLANNING TO USE THE ESG
DOLLARS.
I KNOW I'VE HAD A FEW
CONVERSATIONS WITH FOLKS OVER
THERE.
I KNOW FOLKS HERE ON THE PHONE
PROBABLY HAVE AS WELL.
SOME INTEREST IN USING PART OF
THE UNDERSPENT TO DO SOME COVID-
RELATED ENHANCEMENTS TO
CONTRACTS, WHICH IS CLEARLY
NEEDED TO MAKE SURE AS MORE
FOLKS COME INTO SHELTER, THAT
WE CONTINUE TO MAINTAIN
NONCONGREGATE SHELTER AND MAKE
SURE THEY'RE A HEALTHY
ENVIRONMENT.
SO THAT PEOPLE DO NOT CONTINUE
TO COURTEOUS CONTRACT COVID.
BUT WE APPRECIATE THAT THE
COVID MITIGATION EFFORTS ARE
BEING PUT INTO PLACE.
I THINK THAT THERE IS REAL
INTEREST IN MAKING SURE THAT
THE, ANY REMAINING FUNDS FOR
THIS YEAR ARE DIRECTED TOWARDS
JUST CARE.
AND I BELIEVE THAT'S A SHARED
PRIORITY AS WELL, WITH RHA.
SO I'M WONDERING IF THERE IS
ANY UPDATE ON WHAT THE
SHORTFALL IS IN THE NCFRP,
THANKS TO THE CHANGES BEING
MADE TO COMMERCE FUNDS AND WHAT
THE CHANGES ARE, I KNOW YOU
CAN'T SPEAK ON BEHALF OF RHA.
BUT WHAT THE PLAN MIGHT BE.
>> THANKS.
THE FUNDS I'LL NEED TO DEFER TO
JOE FIRST.
>> GOOD MORNING, MADAM CHAIR.
THIS IS A TOP PRIORITY BETWEEN
H SD AND OF COURSE, REGIONAL
HOUSING AUTHORITY.
BUT I DON'T HAVE SPECIFIC
DETAILSA THE THIS TIME.
AND I WILL HAVE TO PROVIDE THAT
DETAILED INFORMATION BACK TO
YOU AT A SUBSEQUENT, YOU KNOW,
LATER, AT A LATER TIME.
>> WONDERFUL.
OKAY.
THANK YOU VERY MUCH.
AND THE REGIONAL HOMELESSNESS
AUTHORITY, I KNOW IS CONTINUING
TO IDENTIFY WHAT TO DO WITH
THOSE DOLLARS.
I THINK THEY'VE EXPRESSED
INTEREST IN JUST CARES.
SO SEEMS LIKE THERE SHOULD BE A
PATH TO MAKE SURE THEY RECEIVE
FUNDING.
WITH ADDITIONAL FUNDS THAT COME
LATER THIS YEAR.
BUT WE ALL HAVE THE SAME FUNDS
AVAILABLE.
LOOKING FORWARD TO GETTING THAT
ADDRESSED.
DR. FIDUCHI, DO YOU HAVE
ANYTHING TO ADD?
>> I WANTED TO NOTE THAT I
BELIEVE THAT MARC DONEES WILL
BE PRESENTING TODAY, LATER AT
THE PUBLIC ASSETS AND
HOMELESSNESS COMMITTEE.
ALSO THERE MAY BE A CHANCE TO
CHECK IN WITH THEM AT THAT
TIME.
>> AND WE HAVE THE CHAIR OF
THAT COMMITTEE WITH US.
SO I LOOK FORWARD TO HAVING
THOSE ITEMS DISCUSSED IN
GREATER DETAIL THERE.
I KNOW FOLKS ARE NOT ABLE TO
SPEAK ON BEHALF OF A THIRD
ENTITY OF THE REGIONAL HOMELESS
AUTHORITY.
BUT SINCE THERE'S SO MUCH
SHARED INTEREST AND THE
OPPORTUNITY TO USE THESE
FEDERAL DOLLARS, THAT SEEMS
PRUDENT OF US TO HAVE ASKED THE
QUESTION TODAY.
AND LOOK FORWARD TO HEARING
MORE ABOUT THAT THIS AFTERNOON.
ANY ADDITIONAL QUESTIONS FOR
SLIDE 16 HERE?
SEEING NONE, LET'S GO AHEAD AND
MOVE ON.
>> CHILD CARE.
PARTICULAR, CHILD CARE
FACILITIES.
COORDINATING OUTREACH AND
RECRUITMENT ON CHILD CARE AND
THEIR FACILITIES.
POSTED TWO POSITIONS FOR
PROJECT FACILITIES COORDINATOR.
AND THOSE POSTINGS HAVE CLOSED
NOW, TO INCREASE CAPACITY FOR
THIS PROGRAM.
AND ON THIS SLIDE, IT'S ALSO A
TIME LINE OF WHAT IS TO COME
FOR CHILD CARE FACILITIES.
A SURVEY OF CHILD CARE
PROVIDERS COMPLETED ITS PERIOD
ON APRIL 22nd.
AND THAT SURVEY IS GOING TO BE
USED TO FORM DEALS, WHICH WILL
BE RELEASED IN MAY.
AND RELEASED RFP, WHICH HAS A
TARGET OF MAY 16th.
AND RFQ FOR ARCHITECTURAL
SUPPORT FOR THEIR CAPITAL
IMPROVEMENT PLANS.
AND CAN CONTACT US DIRECTLY TO
LEARN MORE AT THE E-MAIL THAT
IS ON THIS SLIDE.
>> THANK YOU.
AND DIRECTOR CHEN, THANK YOU
FOR BEING HERE WITH US WITH
YOUR TEAM.
IS THERE ANYTHING THAT YOU
WOULD LIKE TO ADD TO THAT
SUMMARY OR TIME LINE?
>> I THINK THE ONLY THING I'D
LIKE TO ADD IS THAT WE ARE ON
TARGET FOR THE MAY 16th.
AND WE HAVE YOU KNOW, I WISH WE
COULD HAVE EXPEDITED THIS
FASTER.
BUT HERE WE ARE.
AND WE'RE REALLY EXCITED TO
HAVE THIS OPPORTUNITY
AVAILABLE.
THEN WE'RE GEARING UP TO HAVE
FULL STAFFING CAPACITY TO
SUPPORT THE VARIOUS PROVIDERS.
SOME WHO ARE NEW TO THIS ARENA
TO HAVE ACCESS TO THE FUNDS TO
EXPAND.
AND AS YOU SAY, SEATS FOR
KIDDOS.
SO WE'RE REALLY HAPPY TO
PARTNER WITH YOU ON THIS.
>> GREAT.
LET'S GET MORE OF THOSE BELLY
BUTTONS INTO CHILD CARE.
YOU KNOW, WHAT I AM EXCITED
ABOUT IS ALSO THIS MID-MAY
RELEASE OF THE RFP, FOR BROADER
CHILD CARE PROVIDERS.
WILL YOUR TEAM BE ABLE TO SEND
A COUNCIL THE RFP INFORMATION,
SO WE CAN PUSH THAT OUT WIDELY?
SO PEOPLE KNOW.
WE'VE GOTTEN A LOT OF INQUIRY
ABOUT HOW TO ACCESS THESE
CAPITAL DOLLARS.
I'LL HAVE PEOPLE KNOW, IT WAS
$5 MILLION AND WE'LL ADD
ANOTHER MILLION TO THAT.
SO $6 MILLION IN TOTAL FOR
THOSE KIDDOS TO HAVE HIGH
QUALITY CHILD CARE.
THAT'S GOING OUT IN MID-MAY.
THEN WHEN WILL THE PROVIDERS
KNOW THAT THEY'VE RECEIVED
FUNDS FOR BUILDING OUT
ADDITIONAL SPACES OR RETROFITS
TO HOUSE MORE KIDDOS AND
CLASSROOMS?
>> AND THIS IS WHERE I HAND IT
OVER TO JOE.
>> OKAY.
THANKS AGAIN FOR BEING WITH US.
>> THE CURRENT TIME LINE FOR
THE RFP AS DIRECTOR CHEN
STATED.
RFP.
AND MAY 24th WILL BE THE
SESSION.
JUNE 28th IS THE PLAN CLOSURE
DATE.
JULY WILL LOOK FOR THE
AWARDING.
OR THE AWARDING OF THE
RECIPIENTS.
AND AWARD NOTIFICATION SHOULD
BE SENT ON AUGUST 4th.
AND THE CONTRACT SHOULD BE
SIGNED BY AUGUST 19th.
>> OKAY.
THANK YOU FOR THAT.
AND THAT IS THE SET TIME FRAME
THAT IS AS FAST AS THEY CAN GET
OUT THE DOOR.
OKAY.
COULD YOU SEND A SUMMARY OF
THOSE DATES THAT WE CAN SEND
OUT TO THE FOLKS WHO HAVE BEEN
INQUIRING SO THEY CAN KEEP
TRACK OF THOSE POTENTIAL DATES
AND ANY POTENTIAL LINKS YOU
HAVE.
I MIGHT HAVE THE R FP WHEN IT
GOES LIVE.
>> YES.
>> THANK YOU SO MUCH.
I DO WISH I COULD GET OUT THE
DOOR SOONER, BUT I APPRECIATE
THE PROGRESS YOU'VE MADE.
I KNOW YOU'VE ASKED ABOUT THIS.
AND I SEE THAT THERE HAS BEEN
PROGRESS MADE ON THIS AND
APPRECIATE THAT.
AND ALSO THAT WE'RE LOOKING AT
EXPANDING THE CAPITAL
FACILITIES IN TERMS OF BRICK-
AND-MORTAR, TO TRY TO GET MORE
CHILD CARE INTO SEATTLE ACROSS
SEATTLE.
APPRECIATE IT.
LET'S CONTINUE.
>> RIGHT.
AND ON THIS SLIDE ARE UPDATES
ON THE COMMUNITY PROGRAMS THAT
ARE FUNDED WITH CLFR.
THE STATE HAS APPROPRIATED
MATCHING FUNDS FOR THE OLDER
AMERICANS ACTS GRANT.
AND WE'RE EXPECTING FUNDS IN
JULY.
AND FOR THE MENTAL HEALTH
SERVICES ILED IN SRP FUND,
FUNDING IS 100% OBLIGATED AND
SPENDING IS UNDER WAY.
>> ALSO, AN AREA WHERE I'M SURE
VICE CHAIR HERBOLD IS HAPPY TO
SEE PROGRESS BEING MADE.
THAT WAS AN AREA OF CONCERN FOR
US.
I APPRECIATE IT.
THANKS.
>> AND NOW ON ECONOMIC
RECOVERY, AS NOTED, DEPARTMENTS
CONTINUE TO MOVE FORWARD WITH
PLANNING AND CONTRCTING AND
SPENDING SOME OF THE PROGRESS
THAT HAS BEEN MADE JUST ISN'T
IN THE ACCOUNTING SYSTEM YET.
AND ISN'T SHOWING UP IN OUR
MONTHLY REPORT.
AND ONE EXAMPLE OF THAT IS THE
NEIGHBORHOOD ECONOMIC REPORTS
PROGRAM.
OUR SYSTEM SHOWS IT'S MAYBE TWO-
THIRDS ENCUMBERED.
BUT IT'S ACTUALLY ENTIRELY
ACCOUNTED FOR.
WITH THESE AGREEMENTS OR
PROVIDERS.
SO THAT'S COMMITTED.
BUT WE DIDN'T GET THE VERBAL
UPDATE FROM THEM IN THE REPORT
TO EXPLAIN THAT.
WE'VE ALREADY MADE
DISAGREEMENTS.
AND ARTS IS ANOTHER EXAMPLE
HERE WITH THEIR CULTURAL
ORGANIZATION.
THE OPENING GRANTS.
IT'S CLOSED ITS RFP.
AND IS NOW SCREENING APPLICANTS
BEFORE COORDINATES ARE
ANOUNCED.
WE EXPECTED TO SHOW MORE
PROGRESS ON THESE THINGS BY THE
AUGUST UPDATE.
AND ANOTHER MORE TECHNICAL
REASON WHY THINGS MAY NOT BE
SHOWING UP IS THEY CAN TAKE
TIME BETWEEN WHEN A PROGRAM IS
ENCUMBERED.
AND THAT PROVIDER INVOICES THE
CITY.
AND THE CITY MAKES A PAYMENT
AND THAT HITS OUR BOOKS.
SO MORE TO COME, AS ALWAYS.
>> A FEW FOLLOW-UP QUESTIONS.
COUNCILMEMBER NELSON, PLEASE GO
AHEAD.
>> SO I THINK WHAT I HEARD YOU
JUST SAY IS THAT THE 45% ON THE
PREVIOUS SLIDE IS NOT REALLY UP
TO DATE, THAT THE MONEY FOR
ECONOMIC RECOVERY AND COMMUNITY
WELL BEING IS GETTING OUT THE
DOOR, AND THERE'S NOT THE
DISCONNECT THAT I HAD MAYBE
PERCEIVED EARLIER, BASICALLY.
BECAUSE I WAS WONDERING IF THAT
WAS A STAFFING ISSUE IN O.E.D.,
WHY THAT WASN'T GETTING OUT THE
DOOR.
IS THAT WHAT YOU WERE BASICALLY
SAYING?
>> I'M SAYING THAT'S DEFINITELY
A PART OF IT.
>> OKAY.
>> BUT I DON'T WANT TO CROSS
OVER ANY REAL ISSUES HERE, TOO.
BUT O.E.D.
HAS HAD TURNOVER.
THEY GOT A NEW DIRECTOR AND
THINGS ARE RAMPING BACK UP.
BUT IT IS ALSO TRUE THAT THERE
IS MORE PROGRESS THAT HAS BEEN
MADE THAN SOSHOWING UP IN OUR
MONTHLY REPORTS.
>> OKAY.
YEAH.
BECAUSE THEY BASICALLY TURNED
INTO A GRANT PROCESSING BODY.
AND IT WAS REALLY HARD TO KEEP
UP.
I JUST WANTED TO MAKE SURE THAT
MONEY WAS GETTING OUT THE DOOR.
AND THEN THE -- ON THIS SLIDE,
LET'S SEE.
IT SAYS -- I JUST WANT TO MAKE
SURE I HAVE THE NUMBER RIGHT
FOR DOWNTOWN RECOVERY.
1.4.
BUT I THOUGHT THAT THERE WAS 2
MILLION FOR DOWNTOWN.
SO IS THERE -- AM I REFERRING
TO -- 2 MILLION WAS ALLOCATED
PER COUNCIL BILL 120093.
SO I'M JUST WONDERING, IS THE
NUMBER 2 MILLION?
OR 1.4?
>> I MAY HAVE TO GET BACK TO
YOU ABOUT WHICH ITEMS ARE BEING
INCLUDED AND WHICH TOTAL.
>> OKAY.
ALL RIGHT.
THANK YOU.
>> I'M WONDERING -- AND THANK
YOU VERY MUCH, COUNCILMEMBER.
I'M WONDERING, INTERIM DIRECTOR
PENUCHI, IF YOU HAVE ANYTHING
YOU'D LIKE TO ADD ON THE
DOWNTOWN EFFORTS.
MY MEMORY WAS THERE WAS MORE
LIKE 4.75 MILLION 22 MILLION
WITH 2 MILLION ALLOCATED
SPECIFICALLY FOR DOWNTOWN
NEIGHBORHOODS.
TECHNICAL ASSISTANCE.
AND DIDN'T HAVE A SPECIFIC
BREAKDOWN.
IS IT POSSIBLE THAT THERE WAS
OVERLAP BETWEEN SPECIFIC
DOWNTOWN DOLLARS AND OTHER
DOLLARS THAT WERE ALSO
ALLOCATED AS PART OF SEATTLE
RESCUE PLAN.
>> YOU CAN SEE THE FIVE MILLION
GRANT HERE.
THERE WAS ALSO THE 500,000 THAT
WAS NOT INCLUDED IN THAT.
BUT SIMILAR USE TOTAL OF SIX
MILLION FOR THAT PARTICULAR
USE.
AND OF COURE, DEVELOPMENT AND
TECHNICAL ASSISTANCE PIECES.
THAT COULD BE PART OF WHAT
COUNCILMEMBER IS REFERRING TO
IN DOWNTOWN FUNDING.
MAY NOT BE IN THAT 1.4 MILLION
TOTAL.
>> CHAIR MOSQUEDA, I THINK I'LL
MAYBE RESUMMARIZE WHAT YOU
SAID.
SO THE ORIGINAL PROPOSAL WAS 22
MILLION IN THE ECONOMIC AND
RECOVERY SPACE THAT INCLUDED
BOTH FUNDING FOR SMALL
BUSINESSES, ARTS AND CULTURAL
ORGANIZATIONS AND WORKERS.
THE FINAL BILL INCLUDED $19
MILLION TO THE OFFICE OF
ECONOMIC DEVELOPMENT AND $3
MILLION TO ARTS AND CULTURAL
ORGANIZATIONS.
OF THE $19 MILLION ALLOCATE
TODE THE OFFICE OF ECONOMIC
DEVELOPMENT, $7.5 MILLION WAS
SPECIFIC TO THOSE RECOVERY
GRANTS, OF WHICH 2 MILLION WAS
DEDICATED SPECIFICALLY TO
DOWNTOWN.
AND $5.5 MILLION WAS ALLOCATED
SPECIFICALLY FOR OTHER BUSINESS
DISTRICTS.
THE OTHER FUNDS WERE NOT
DESIGNATED FOR SPECIFIC
GEOGRAPHIES.
THEY WEREN'T, IN SOME CASES FOR
SPECIFIC TYPE PROGRAMS,
TECHNICAL ASSISTANCE.
CAPITAL INVESTMENTS AND ARTS
AND CULTURAL.
THAT SORT OF THING.
BUT THE GEOGRAPHY WAS NOT
SPECIFIED.
BUT IN THE COUNCIL'S
DELIBERATIONS, IT WAS
DETERMINED TO ENSURE THAT THERE
WERE SOME AMOUNT OF FUNDS THAT
WERE AVAILABLE TO SUPPORT
BUSINESSES THROUGHOUT THE CITY.
AND THAT WAS THE ALLOCATION OF
THE 7.5 MILLION BETWEEN
DOWNTOWN AND BUSINESS
DISTRICTS.
>> GREAT.
THANKS.
AND MY LAST QUESTION.
SPECIFIC TO THE CONCEPT ABOUT
HOW DO WE GET THESE DOLLARS OUT
FASTER.
I'M ALSO INTERESTED IN THAT.
AND MR. CHEN, IF IT'S NOT FOR
YOU, IF WE NEED TO TAKE IT BACK
TO THE DEPARTMENT.
BUT I THINK WE'RE ALL
INTERESTED IN HOW WE CAN HELP
MAYBE GET THESE DOLLARS OUT THE
DOOR FASTER?
AND TO THE DEGREE THAT THE
PERCENTAGE IS STILL NOT OUT THE
DOOR IN TERMS OF DELAY IN
VOICES COMING IN.
THAT'S GOOD NEWS.
BUT ALSO STILL INTERESTED VERY
MUCH IN HELPING TO GET THOSE
DOLLARS OUT.
I SEE DIRECTOR DINGLEY COMING
ON SCREEN.
AND IF YOU HAVE ANY INFORMATION
ABOUT THAT, I'M SURE WE'D ALL
BE INTERESTED IN HELPING OUT.
>> ABSOLUTELY.
I ALSO WANTED TO ADD THAT PART
OF THIS IS THE GROUPS WE'RE
INVESTING IN MAY NOT BE READY
TO RECEIVE THOSE FUNDS.
SOMETIMES THAT PROCESS CAN TAKE
LONGER.
MANY OF THESE FUNDS ARE SPOKEN
FOR.
BUT WE DON'T HAVE A CONTRACT
THAT IS SIGNED.
SO THEY'RE STILL WORKING
THROUGHOUT THAT PROCESS.
THAT'S JUST ANOTHER ELEMENT
THAT IS AT PLAY HERE.
>> ANY ADDITIONAL COMMENTS OR
QUESTIONS ON THIS SLIDE?
OKAY.
WELL, WE'LL LOOK FORWARD TO
HEARING MORE.
AND IF THERE IS ANYTHING WE CAN
DO FROM YOUR SUBSEQUENT
CONVERSATIONS, PLEASE LET US
KNOW.
>> THANK YOU.
>>> JUST BRIEFLY ON OUTDOOR
RECOLLECTION REGION.
SEVERAL OF THESE PROGRAMS HAVE
BEEN COMPLETED.
ON THOSE THAT HAVEN'T.
PARKS IS DEVELOPING A PROGRAM
FOR THE PARKS ACTIVATION
PROGRAM THAT WILL BE
IMPLEMENTED THIS SUMMER.
AND THE PROGRAM ACTIVITIES
ONGOING.
THIS IS A MATTER OF THE
DEPARTMENT WORKING ON THE
ACCOUNTING SIDE APPLYING FOR
THOSE COSTS.
>>> AND FINALLY, THIS CONTINUES
TO GROW.
THIS HAS RECEIVED OVER 5,000
APPLICANTS AND OVER 600 HAVE
APPLIED TO TWO OR MORE
PROGRAMS.
AS A REMINDER THIS IS A PROGRAM
THAT IS MEANT TO SIMPLIFY AND
STREAMLINE APPLICATIONS FOR
AID.
THEY RECENTLY ADDED A NEW
PROGRAM TO ITS ROSTER.
EMERGENCY ASSISTANCE PROGRAM
FROM CITY LIGHT.
AND IT TRACKS VALUABLE DAT THAT
WE CAN USE IN THE SYSTEM.
THINGS LIKE ZIP CODES OR THE
AVERAGE TIME IT TAKES TO
COMPLETE DIFFERENT APPLICATIONS
WHICH HELPS US SEE WHERE WE
MIGHT NEED TO CHANGE.
SO WE'RE LOOKING FORWARD TO
LEARNING MORE AND AFTER WE
PUBLISH THAT REPORT.
>> IS THIS -- I'M SORRY.
>> THAT'S IT.
>> THANK YOU.
THAT IS GREAT.
CAN YOU ALSO TELL ME, THOUGH,
IS THIS THE SAME PORTAL THAT WE
HAD BEEN WAITING FOR THAT WAS
CREATING A SINGLE POINT OF
APPLICATION FOR PEOPLE WHO
MIGHT BE CELEBRATE FOR A HOST
OF VARIOUS --
>> YEAH.
IT'S BEEN HIGHLIGHTED IN THE
LATTER PART OF LAST YEAR.
AND STARTED TAKING OUT
APPLICATIONS.
SO NOW IT HAS FIVE CITY ROSTERS
IN HIS PROGRAM.
AND IN EXPANSION TO ONE OF
THOSE.
I THINK IT'S THE SCHOLARSHIP
PROGRAM.
AND THEY'RE WORKING TO EXPAND
IT TO INTERPARKS SCHOLARSHIP
PROGRAM.
SO IT IS A PORTAL THAT IS
ACTIVE, BUT ALSO IN PROGRESS,
GROWING, ADDING MORE PROGRAMS
TO IT.
GREAT.
>> DIRECTOR PANUCCI, DID YOU
WANT TO ADD ANYTHING TO THAT?
>> YES.
I WANTED TO ADD, THAT FOR
SEVERAL YEARS.
YOU AND YOUR COLLEAGUES HAVE
BEEN DISCUSSING AND REQUESTING
THE DEVELOPMENT OF A SINGLE
POINT OF ACCESS.
AND THE EXECUTIVE HAS BEEN
INTERESTED AND SUPPORTIVE OF
THAT DAY AS WELL.
BUT I THINK THE FEDERAL FUNDS
HAVE ALLOWED THE CITY TO REALLY
LAUNCH THIS PROGRAM AND AS
WILLIAM DESCRIBED, IT IS
GROWING, WITH EACH UPDATE, WE
SEE MORE PROGRAMS BEING ADDED
TO IT.
SO I THINK THIS IS THE
IMPLEMENTATION OF THAT IDEA
THAT HAS BEEN DISCUSSED FOR
SEVERAL YEARS,.
>> AND THE DARK BLUE IS
SERVICES THAT HAVE ACCESS TO
HIGHER RATES?
>> RIGHT.
>> GREAT.
OKAY.
WE HAVE ABOUT FIVE MORE MINUTES
FOR THIS PRESENTATION.
COUNCILMEMBER NELSON, PLEASE GO
AHEAD.
>> SO BACK TO SLIDE 4. YOU
DON'T KNOW.
IT'S ON SLIDE 11.
IT'S, THE ASTERISK SAYS SRP
ALSO INCLUDED 66.3 MILLION.
SO OFFLINE, CAN YOU JUST TELL
ME WHERE THAT WENT OR WHAT THAT
IS BACK FILLING?
THAT CAN BE JUST OFFLINE.
BUT THIS CIVIFORM RAISED A
QUESTION.
I REALLY APPLAUD THIS EFFORT.
SO IS THERE ANY -- ARE THERE
FUNS THAT COMMUNITIES CAN
ACCESS THROUGH THIS SITE THAT
ARE NOT ACCOUNTED FOR IN THE
PROGRAMS THAT WE JUST WENT
OVER?
SO THERE'S STILL SOME -- OR IS
THAT -- IS THIS IN ADDITION TO?
OR ARE THOSE BUCKETS OF MONEY
THAT WE JUST DISCUSSED IN THIS
PRESENTATION, SEPARATE FROM
OTHER FUNDS THAT COULD BE
ACCESSED THROUGH THIS PORTAL.
>> SO IT IS SEPARATE, AS FAR AS
THE PROGRAMS THAT ARE
ONBOARDED.
THIS HELPS RESIDENTS ACCESS.
ULTIMATELY, IT WILL BE AS MANY
AS WE CAN GET ONTO THE SYSTEM.
>> OKAY.
>> NOT SPECIFIC TO JUST THESE
EMERGENCY FUNDS.
>> GOT IT.
THANK YOU VERY MUCH.
>> I HAVE A QUESTION ABOUT
HYGIENE STATIONS AND THE REST
ROOMS THAT WE INCLUDED.
WE DID INCLUDE FUNDING AND I'M
NOT REMEMBERING OFF THE TOP OF
MY HEAD, FUNDING FOR PORTABLE
BATHROOMS AND HYGIENE STATIONS.
AND I KNOW THAT AS PART OF THE
BUDGET EXERCISE TO POTENTIALLY
HOLD BACK SOME FUNDING THIS
YEAR, AS WE WAIT FOR THE
REVENUE FORECAST TO SORT OF
PENCIL OUT A LITTLE BIT MORE.
THAT IS PART OF THE AREA THAT
IS BEING HELD BACK.
I'M SORRY.
I DIDN'T BRING THIS UP IN THE
CONTEXT OF THE PRESENTATION
EARLIER, BECAUSE IT MAY HAVE
FIT IN WITH THE CLEAN CITY
INITIATIVE COMMENTS THAT WERE
MADE.
BUT I DID SEE ONLINE THAT THERE
ARE PORTABLE REST ROOMS BEING
PURCHASED FOR PARKS.
I THINK PARKS PERSONNEL WHO ARE
INVOLVED IN SWEEPS.
AND I'M WONDERING IF YOU CAN
COMMENT A LITTLE BIT ABOUT
WHETHER OR NOT ANY OF THE NEW
AMERICAN RESCUE ACT FUNDS HAVE
BEEN USED TO PURCHASE PORTABLE
REST ROOMS.
THOSE ARE ONLY FOR CITY
WORKERS.
AND ARE WE ABLE TO IDENTIFY
HYGIENE FACILITIES THAT HAVE
BEEN PURCHASED FOR FOLKS IN THE
COMMUNITY THAT GENERALLY NEED
THEM.
WE'VE TALKED A LOT ABOUT THIS
OVER THE LAST FEW YEARS.
BUT AS FOLKS ARE OUT FOR A RUN
OR WALK.
AND THAT COULD BE HOUSED OR
UNHOUSED FOLKS.
ANY OF THE FUNDS GO TO
PURCHASING THE HYGIENE
FACILITIES AS ORIGINALLY
ENVISIONED?
> NOT ACTUALLY FAMILIAR WITH
THIS FOR THE USE OF CLFR
DOLLARS.
BUT WOULD NEED TO LOOK INTO
THAT.
I THINK MAYBE MENTIONED IT
BEING CONSIDERED FOR A WHOLE
TERM.
MIGHT BE AMONG THE GOVERNMENT
REPLACEMENT.
>> I KNOW AMONG THE HUNDRED OF
PROGRAMS THAT WE ARE EXCITED
ABOUT, THIS WAS ONE THAT GOT A
LOT OF ATTENTION ON COUNCIL.
AND I KNOW IT'S DEEPLY NEEDED
OVER COVID.
BUT HIGHLIGHTED THE NEED FOR
HYGIENE FACILITIES.
DIRECTOR PENN UCUCCI.
>> IT IS PROBABLY WHY WILLIAM
ISN'T SPECIFICALLY TRACKING
THAT PROGRAM.
AND WE CAN FOLLOW UP OFF LINE
WITH DIRECTOR DINGLEY ON THOSE
INVESTMENTS.
>> GREAT.
AND VICE CHAIR HER BOLD, PLEASE
GO AHEAD.
>> THE REPORT THAT THE CAMP
SECOND CHANCE TRAILER WAS
PURCHASED AND THE PLUMBING IS
BEING PUT IN.
AND THE TRAILER, I THINK,
OPENED UP FOR USE.
WEEKEND BEFORE LAST.
SO THAT'S GOOD NEWS.
[ LAUGHTER ]
>> THAT'S A GREAT POSITIVE
POINT TO END ON.
AND OVERALL, VERY MUCH
APPRECIATES THE DIRECTION THAT
HAS BEEN TAKEN.
ESPECIALLY THE URGENCY TO GET
THE DOLLARS OUT IN THIS FIRST
QUARTER OF 2022.
THANKS AGAIN FOR THE
TRANSPARENCY.
FOR ME, I KNOW I'VE BEEN HONING
IN SPECIFICALLY ON THE RV SAFE
LOT.
STORAGE, TINY HOUSE VILLAGE.
THE FUNDING THAT WE WANTED TO
SEE FOR THINGS LIKE DIRECT CASH
ASSISTANCE AND CHILD CARE
SUPPORT.
SO I'M REALLY EXCITED ABOUT
SOME OF THE PROGRESS THAT HAS
BEEN MADE.
AND WE'LL LOOK FORWARD TO
FOLLOWING UP THIS AFTERNOON AND
COUNCILMEMBER LEWIS'S COMMITTEE
ON HOMELESSNESS AND PUBLIC
ASSETS THIS AFTERNOON ON
ADDITIONAL SPENDING FROM RHA.
BEFORE WE CLOSE OUT, ARE THERE
ANY ADDITIONAL QUESTIONS FROM
OUR COLLEAGUES?
OKAY.
SEEING NONE, I THINK THAT THE
NEXT TIME WE'RE HOPEFULLY GOING
TO BE ABLE TO HEAR YOU IS MAYBE
LATE AUGUST, AFTER THE REVENUE
FORECAST IS PRESENTED.
I THINK OUR HOPE WAS TO DO AN
IMPLEMENTATION UPTATE AFTER WE
GET THE REVENUE FORECAST.
SO WE CAN LOOK AT STRATEGIES.
AS WELL AS LOOKING FORWARD TO
THE CURRENT CITY REVENUES.
AND SEEING DIRECTOR DINGLEY
NOD.
THANKS FOR ALL YOUR WORK.
PASS ON OUR CONSIDERATION.
AND CONGRATULATIONS AGAIN ON
THE NATIONAL RECOGNITION THAT
YOU'VE RECEIVED FOR TRACKING
AND HOLDING OUR CITY
ACCOUNTABLE FOR SPENDING THOSE
DOLLARS.
I KNOW OUR CONGRESSIONAL
PARTNERS WILL BE EXCITED ABOUT
THAT, TOO.
>> THANK YOU, CHAIR MOSQUEDA.
>> THANKS SO MUCH.
WE LOOK FORWARD TO SEEING YOU
NEXT TIME.
AND JULIE, I BELIEVE YOU'RE
STICKING AROUND WITH US,
DIRECTOR DINGLEY.
LOOK FORWARD TO CONTINUING THE
CONVERSATION.
COLLEAGUES, WITHOUT FURTHER
ADIEU, WE ARE RIGHT ON TRACK.
MADAM CLERK, WOULD YOU PLEASE
READ INTO THE RECORD ITEM
NUMBER 3.
>> FINANCIAL PLANNING FOR
BRIEFING AND DISCUSSION.
>> WONDERFUL.
AND WITH US TODAY, WE HAVE
DIRECTOR DINGLEY FROM THE CITY
BUDGET'S OFFICE.
WE ALSO HAVE WITH US INTERIM
DIRECTOR
ALY PENNUCCI.
I'M EXCITED ABOUT THIS
PRESENTATION.
AS WE TEED UP.
THIS IS REALLY PART TWO OF THE
CONVERSATION THAT ROUNDS OUT
THE FULLER PICTURE.
NOT ONLY REVENUE FOR 2022, 23
AND 24.
BUT REALLY LOOKING AHEAD, SIX
YEARS AHEAD IS WHAT I REALLY AM
EXCITED ABOUT.
IF FOLKS HAVEN'T HAD A CHANCE
TO READ THE BUDGET MEMO, IT IS
15 PAGES OF VARIOUS INFORMATION
PROVIDED FROM TOM MIKESELL.
AND IT PROVIDES WHAT TO EXPECT
THROUGHOUT 2022.
AS WE LOOK AT THE BUDGET
SITUATION.
MOST HAVE HEARD US TALK ABOUT
WHAT THE CURRENT BUDGET
SITUATION IS.
AND THE GAP BETWEEN LONG-TERM
NEEDS AND INVESTMENTS THAT WE
HAVE PRIORITIZED AND THE AMOUNT
OF REVENUE THAT WE HAVE TO MEET
THOSE NEEDS.
SO TODAY, AS WE WALK THROUGH
THIS PRESENTATION, I THINK
YOU'LL HEAR A LITTLE BIT MORE
TO ROUND OUT WHAT THAT GAP
CURRENTLY MEANS.
HOW IT CAME TO BE.
AND SOME POSSIBLE WAYS THAT WE,
AS A COLLECTIVE, THE CITY
FAMILY, I SHOULD SAY, SINCE WE
HAVE THE EXECUTIVE ON THE
PHONE, ON THE LINE HERE AS
WELL.
AS WE AS A CITY FAMILY LOOK TO
ADDRESS SOME OF THESE NEEDS.
I REALLY WANT TO APPLAUD
CENTRAL STAFF FOR THE WORK
THEY'VE DONE ON THIS MEMO AND
THANK FOR THE CITY BUDGET
OFFICE.
JULIE DINGLEY AND YOUR TEAM,
ESPECIALLY IN THE LAST FOUR
MONTHS, HAVE BEEN REALLY
WORKING IN DEEP CLAKDZ AND
PARTNERSHIP WITH OUR CENTRAL
STAFF TEAM.
I KNOW THAT'S BEEN APPRECIATED.
I APPRECIATE IT.
AND I WANT YOU TO HEAR FROM US
DIRECTLY AS WELL.
ON PAGE 2 AND 3 OF THE MEMO,
THERE ARE KEY POINTS THAT I
WANT TO HIGHLIGHT TO NOTE THE
IMPORTANCE OF THIS PRESENTATION
TODAY.
ON PAGE 2, THE SECOND
PARAGRAPH, IT REALLY TALKS
ABOUT THE IMPORTANCE OF HAVING
A CONVERSATION ABOUT A SIX-YEAR
FINANCIAL PLAN IN A TRANSPARENT
ACCOUNTABLE WAY, EARLY, PRIOR
TO A BUDGET BEING BEING
TRANSMITTED TO THE LEGISLATIVE
BRANCH FOR CONSIDERATION AND
FINALIZATION.
IN THE MEMO, IT NOTES THAT
RATHER THAN A ONE-OFF AD HOC
PROCESS, PERIODICALLY REVIEWING
THE FINANCIAL PLAN, IT'SONT MAL
OPTIMAL WHEN IT CAN BE EMBEDDED
IN THE PROCESS.
AND THAT'S EXACTLY WHAT I ASKED
CENTRAL STAFF TO DO.
AND REALIZING THAT THIS SIX-
YEAR FINANCIAL PLANS OR THE SIX-
YEAR OUTLOOK, WERE REALLY
EMBEDDED INTO OUR BUDGET AS
APEND ICES.
YOU'LL NOTE HERE IN THE CENTRAL
STAFF MEMO THAT ON PARAGRAPH 3
IT SAID RATHER THAN USING THIS
AS A GUIDE WHICH IS WHAT WE
HAVE BEEN DOG.
IN THE PAST, THESE WERE
INCLUDED ASAAPPENDICES.
AND THEY WERE NOT DISCLOSED OR
DUSS DISCUSSED IN A PUBLIC WAY
LIKE THEY WILL BE TODAY.
THIS IS A REALLY FUNDAMENTAL
CONVERSATION TO MAKE SURE THERE
IS GOOD BUDGETING PRACTICE.
THAT WE HAVE ACCOUNTABLE AND
TRANSPARENT CONVERSATION
BETWEEN BRANCHES OF GOVERNMENT.
AND THAT WE'RE HAVING A
DISCUSSION WITH THE PUBLIC AS
WELL, ABOUT HOW WE LOOK FORWARD
TO GOOD BUDGETING WITH YOU ALL
IN THE FUTURE.
WANT TO TAKE A MINUTE TO,
AGAIN, THANK THE TRANSPARENCY
THAT HAS COME FROM THE CITY
BUDGET'S OFFICE AGAIN UNDER THE
LEADERSHIP OF DIRECTOR DINGLEY.
ALSO WANT TO APPLAUD MAYOR
HAROLD FOR THE TRANSMISSION AS
WELL.
AND COLLEAGUES, THIS IS JUST
THE BEGINNING OF THE
CONVERSATION.
THIS IS NOT FOR ACTION OR A
VOTE HERE TODAY.
IN FACT, I THINK MANY OF US ARE
USED TO HAVING OPTIONS
PRESENTED TO US.
WE WILL TALK ABOUT OPTIONS AND
SCENARIOS.
BUT THAT'S NOT OPTION IN TERMS
OF THE PROPOSAL WE'RE USED TO.
THIS IS REALLY TO TF A
DISCUSSION ABOUT HOW WE CAN GET
TO SOLID BUDGETING IN THE
FUTURE THAT DOESN'T LOOK AT
CARRYOVER DOLLARS TO SUSTAIN
BUDGETING, DOESN'T LOOK AT
SALARY SAVINGSA A WAY TO PLUG
BUDGET GAPS.
AND LOOKS AT HOW WE CAN CREATE
REALLY STRONG BUDGET OUTLOOK
FOR OUR CITY, AS WE SEEK TO
AGAIN, THANK YOU VERY MUCH, FOR
THE WORK THAT HAS BEEN DONE.
NO LONGER ARE YOU SEEING A
FINANCIAL PLAN BEING SENT DOWN
TO US ON PAGE 665 QUITE
LITERALLY, OF LAST YEAR'S
BUDGET OR PAGE 760 OF THE
PREVIOUS BUDGET.
THIS IS REALLY AN OPPORTUNITY
FOR US TO PULL OUT THAT SIX-
YEAR PLAN, HAVE A DETAILED
DISCUSSION, AND TO THEN ALLOW
FOR THAT TO REALLY FEED INTO
CREATING A STABLE BUDGET
PROPOSAL THAT THE MAYOR IS
WORKING ON IN COLLABORATION
WITH THE CITY BUDGET'S OFFICE,
THAT WILL THEN SERVE AS THE
BASE FOR THE
LEGISLATIVEBRANCH'S
DELIBERATIONS.
I'M EXCITED ABOUT THIS.
WRITING OUT JUST OVER A SIX-
YEAR FINANCIAL PLAN.
AND I THINK YOU'LL SEE WHY.
AND I THINK THE CENTRAL STAFF
HAS REALLY ARTICULATED THE
IMPORTANCE OF THE ASK THAT WE
MADE OF CENTRAL STAFF AND THE
HARD WORK THAT HAS GONE IN OVER
THE LAST TWO YEARS TO DISSECT
THIS INFORMATION AND HAVE A
COMPLETE ANALYSIS HERE.
SO AGAIN, THANK YOU, DIRECTOR
DINGLEY FOR YOUR PARTNERSHIP
AND COLLABORATION.
AND THANK YOU, TOM AND ALY.
AND AS A REMINDER, AS NOTED ON
THE LAST PAGE OF THE MEMO.
THIS SIX-YEAR FINANCIAL PLAN
WILL BE UPDATED, EVERY TIME WE
RECEIVE A REVENUE FORECAST.
SO THE NEXT ONE YOU WILL
RECEIVE AS AN UPDATED SIX-YEAR
FINANCIAL PLAN ANALYSIS WILL BE
IN AUGUST.
AND THEN AFTER THAT AGAIN IN
NOVEMBER.
BUT WE'LL BE IN THE HEART OF
BUDGET DELIBERATIONS AT THAT
TIME.
SO WITH THAT, AND THERE SHOULD
BE A DRUM ROLL HERE.
I WILL TURN IT OVER TO DIRECTOR
DINGLEY.
AND DIRECTOR PENNUCCI.
AND I THINK TOM WILL REALLY BE
LEADING US THROUGH THIS
PRESENTATION TODAY.
AND LOOK FORWARD TO HEARING
YOUR QUESTIONS.
BUT REALLY, GREAT AMOUNT OF
WORK HAS GONE INTO THIS.
AND THIS AGAIN IS JUST THE
BEGINNING OF A LONGER
CONVERSATION TO COME.
WE, TOO, ARE EXCITED TO BE HERE
THIS MORNING.
TO BEGIN WHAT WE HOPE TO BE AN
ONGOING EXERCISE ON ENGAGING IN
THE DISCUSSION WITH ALL OF YOU
ON THE CITY'S GENERAL FUND.
TO SAY IT FILLS THIS BUDGET
MANAGER'S HEART WITH JOY, WHEN
I HEAR PEOPLE TALKING WITH SUCH
ENTHUSIASM ABOUT A FINANCIAL
PLAN.
SO THANK YOU FOR THAT.
I'M JUST GOING TO PROVIDE SOME
INTRO REMARKS AND TURN IT OVER
TO TOM.
AND DIRECTOR DINGLEY AND MYSELF
WILL BE HERE ALONG THE WAY TO
ADD ADDITIONAL CONTEXTAND TO
ANSWER ADDITIONAL QUESTIONS.
SO AT LEAST SINCE 2019, THE
GENERAL PLAN HAS PROJECTED THAT
GENERAL FUND EXPENDITURES ARE
OUTPACING GENERAL FUND
REVENUES.
YOU'VE HEARD US TALKING ABOUT
THIS IN VARIOUS STAFF MEMOS
THIS YEAR, IN PRESENTATION WITH
THE BUDGET STAFF OFFICE.
AND PROJECTED GAP.
FOR CLARITY, BECAUSE THIS IS A
TERM MORE COMMONLY USED IN
FISCAL POLICY DISCUSSIONS, OUR
MEMO AND PRESENTATION USE THE
TERM "DEFICIT," BUT YOU'LL HEAR
US USE "GAP CAN THE "OR
"DEFICIT" INTERCHANGEABLY.
THIS HAS BECOME MORE PRONOUNCED
IN RECENT YEARS AS IMPACTS FROM
THE PANDEMIC HAVE MET WITH ONE-
TIME FUNDING SOLUTIONS AS WELL
AS THAT STRUCTURAL PROBLEM THAT
EXISTED PREPANDEMIC.
PROVIDING AN EXISTENT AND
ONGOING REVIEW WILL HELP US
PLACE YOUR CURRENT BUDGET
DISCUSSIONS IN CONTEXT OF HOW
THOSE DECISIONS IMPACT THE LONG-
TERM SUSTAINABILITY OF THE
GENERAL FUND.
WITH THIS IN MIND, AS CHAIR
MOSQUEDA NOTED.
3954 THAT AMONG OTHER THINGS,
REQUESTED THAT IT PROVIDES THE
SIX-YEAR BUDGET ANNUALLY,
INCLUDING DISCLOSURE OF ALL THE
EMBEDDED DISCUSSIONS AND
AGREEMENTS TO SHARE THAT DATA.
THIS IS ANOTHER STEP IN
IMPLEMENTING THAT REQUEST.
WE ARE CONTINUING TO WORK
CLOSELY WITH CBO TO ENHANCE HOW
AND WHEN WE RECEIVE THIS DATA.
THIS PRESENTATION WOULD NOT
HAVE BEEN POSSIBLE WITHOUT THE
PARTNERSHIP FROM THAT OFFICE.
SO I WANT TO ALSO PERSONALLY
THANK DIRECTOR DINGLEY, AND
CAITLIN BERGER FROM CEO.
FROM WORKING COLLABORATIVELY
WITH US.
PROVIDING INFORMATION AND
OFFERING CRITICAL FEEDBACK ON
THE ANALYSIS.
I ALSO WANT TO TAKE A MOMENT TO
HIGHLIGHT THE INCREDIBLE WORK
OF TOM MIKESELL.
HIS EXPERIENCE IN POLICY AND
BUDGETING.
HIS COMMITMENT TO PUBLIC
SERVICE.
AND HIS IMPRESSIVE INTELLECTUAL
CURIOSITY.
ENHANCE AND EXPAND THE ANALYSIS
WE AREA TOIBL BRING TO OUR
BUDGET AND HELP SUPPORT THE
COUNCIL'S DECISION MAKING.
AND ULTIMATELY, THE BUDGET THAT
PROVIDES CRITICAL SERVICES AND
PROGRAMS TO THE PEOPLE WHO LIVE
AND WORK IN SEATTLE.
SO TODAY.
LET'S SEE IF I CAN MANAGE MY
SCREENS HERE.
WE ARE GOING TO PROVIDE
BACKGROUND INFORMATION ON
FINANCIAL PLANNING, REVIEW
PRIOR AND CURRENT VERSION OF
THE GENERAL FUND SIX-YEAR
FINANCIAL PLAN.
WE WILL LOOK AT HOW PREPANDEMIC
PLANS PROJECTED THIS GAP IN THE
BUDGET FUND.
WE'LL SHOW HOW BASED ON THE
ADOPTED BUDGET PLAN, THE
IMPACTS MADE THAT GAP WORSE.
AND HOW RECENT FINANCIAL AND
ECONOMIC UPDATES HAVE PARTIALLY
REDUCED THAT GAP.
AND LOOKING AHEAD TO THE
COUNCIL'S BUDGET PROCESS COMING
THIS FALL, WE OFFER A FEW
SCENARIOS TO ILLUSTRATE HOW
CERTAIN OPTIONAL MEASURES OR
CHANGES IN THE ECONOMIC
SITUATION COULD IMPACT THE
SUSTAINABILITY OF THE GENERAL
FUND.
AS CHAIR MOSQUEDA NOTED, THIS
IS REALLY THE FIRST TIME THE
COUNCIL WILL LOOK
COMPREHENSIVELY AT THIS
FINANCIAL PLAN.
IT IS INTENDED TO PROVIDE
INFORMATION ON THE BALANCING
SITUATION, AS THE ECONOMY
EMERGES FROM THE PANDEMIC.
AND PROVIDE CONTEXT ON THIS AND
ENGAGE WITH THE EXECUTIVE ON
THESE POLICY ISSUES.
AGAIN, WE WILL DO THIS AGAIN IN
AUGUST AND IN NOVEMBER AS THE
COUNCIL ENGAGES IN THE BUDGET
DISCUSSIONS.
SO WE HOPE TO HAVE THIS BE A
CONTINUAL UPDATE AND DISCUSSION
THAT WE ENGAGE IN WITH ALL OF
YOU AND WITH THE EXECUTIVE.
AND WITH THAT, I WILL TURN IT
OVER TO TOM TO LEAD THE
PRESENTATION TODAY.
>> THANK YOU, COUNCILMEMBER
PENNUCCI.
>> I WANTED TO SHARE AND ECHO
ALL VOICED IN THIS COMMITTEE
ABOUT APPRECIATION.
BECAUSE NONE OF THIS COULD HAVE
HAPPENED WITHOUT THAT
COLLECTION COLLABORATION.
O I'M NOT GOING TO BELABOR THE
POINT.
BUT JUST TO ECHO IT AND LIFT
THAT UP.
SO IF WE CAN LOOK AT THE NEXT
VIDE, WE'LL DIVE INTO THE
ANALYSIS OF THE GENERAL FUND
FINANCIAL PLAN.
IN THE UPCOMING SLIDES WE'LL BE
TALKING ABOUT THE MORE COMPLEX
TOPICS THAT DEAL WITH GENERAL
FUND AND FINANCIAL PLANNING IN
GENERAL.
SOME OF THESE WILL BE BASED ON
PRIOR BUDGETS.
IT'S IMPORTANT TO REVIEW THEM
BEFORE WE LOOK INTO MORE
DETAILED INFORMATION THAT WE'LL
TALK ABOUT MORE THIS MORNING.
AND BY WAY OF TERMS, ONE THING
THAT WILL BE DISCUSSED
FREQUENTLY IS ONGOING.
AND SO IN THE TERM -- IN THE
CONTEXT OF THE BUDGET AND
FINANCIAL PLAN, THAT
ESSENTIALLY IS SOMETHING THAT
SHOWS UP IN THE BUDGET EACH AND
EVERY YEAR.
SO A GOOD EXAMPLE OF THAT IS
THE SALARY COST FOR A REGULAR,
SO NONTEMPORARY POSITION THAT
PROVIDES SERVICES IN THE
BUDGET.
EACH YEAR IN THE FINANCIAL PLAN
WILL ACCOUNT FOR PAYING FOR THE
SALARY OF THAT INDIVIDUAL IN
THE FUTURE.
IN CONTRAST, THERE IS THE
CONTENT OF A ONE-TIME ITEM.
SO THESE ARE MORE DISCREET AND
LIMITED IN AND NATURE.
BEST IS A CAPITAL PROJECT.
YOU BEGIN, YOU BUILD THE
PROJECT.
AND WHEN THE PROJECT IS
COMPLETE.
YOU ARE DONE.
AND NO LONGER IS IN THE BUDGET
AS SIGNIFICANT ITEM.
ANOTHER EXAMPLE, MORE ON THE
OPERATING BUDGET IS, SAY, A ONE-
TIME PROGRAM, FOCUSED ON
PROVIDING THE SERVICE IN A
SPECIFIC YEAR.
SOMETIMES I'M GIVEN RESOURCE
CONSTRAINTS.
BUT OTHER TIMES WITH RESOURCES
IN MIND.
THAT NOT IN CONGRATULATIONS TO
YOUR BUDGETS.
UNTIL THIS MATTERS.
BECAUSE ANOTHER TERM IS GROWTH
ASSUMPTIONS.
SO THESE ARE THE WAYS THAT THE
AMOUNTS THAT ARE IN THE CURRENT
YEAR BUDGET ARE GROWING OR
GROWN IN THE FUTURE YEARS.
SO THE ONE THAT COMES TO MIND
FIRST IS INFLATION.
SO AS PRICES GO UP, THE COST OF
WHAT GOVERNMENT IS PURCHASING
INCREASE BECAUSE OF INFLATION.
AND SO IN ORDER TO ACCURATELY
MEASURE THE REVENUES THAT WE'RE
EXPECTING TO RECEIVE AGAINST
THE EXPENDITURES, WE NEED TO
BUILD IN SOME LEVEL OF GROWTH
TO ACCOUNT FOR THAT EXPECTATION
IN THE FUTURE.
NEXT TERM AND INTERIM DIRECTOR
PENNUCCI DISCUSSED THIS.
IT'S KIND OF THE PURIFYING
FINANCIAL CONCEPT OF OPPOSITE
DEFICIT.
THIS IS REALLY IN SIMPLE TERMS,
THE DIFFERENCE BETWEEN THE
RESOURCES THAT WE EXPECT TO GET
AND THE YEAR AND ANNUAL
REVENUES AND THE EXPENDITURES
ON GOVERNMENT THAT WE PLAN TO
MAKE.
SOMETIMES THAT GAP CAN BE
NEGATIVE, WHERE THE
EXPENDITURES ARE HIGHER THAN
THE REVENUES WE PLAN TO
RECEIVE.
AND OTHER TIMES, THE GAP CAN BE
POSITIVE, THE OTHER DIRECTION.
MEANING REVENUES ARE HIGHER
THAN THE EXPENDITURES WE'RE
GOING TO MAKE.
ANOTHER CONCEPT IS THE CONCEPT
OF RESERVE.
IN THE CONTEXT OF GENERAL FUND
FINANCIAL PLAN.
THESE ARE AMOUNT ARE ITEMS THAT
THE EXECUTIVE HAD GENERALLY
EXPECT TO BE INCLUDED IN THE
BUDGET OR FUTURE BUDGETS.
BUT YET, IT'S NOT EXACTLY A
SPECIFIC LEGAL OBLIGATION TO DO
THAT.
AND IF THEY DID NOT ACCOUNT FOR
THIS IN SOME WAY, WHEN THE TIME
COMES TO INCUR THAT OBLIGATION,
THE MONEY WOULD NOT BE THERE TO
MAKE A PAYMENT.
SO THESE, OFTENTIMES, WILL
INCLUDE LEGAL AND CONTRACTUAL
ITEMS THAT ARE UNDER
NEGOTIATION.
SO THEIR FINAL AMOUNTS ARE NOT
QUITE KNOWN AT THIS TIME.
BUT THERE IS AN ESTIMATE THAT
IS AVAILABLE.
AND THAT ESTIMATE IS USED TO
ACCOUNT FOR THAT FUTURE
OBLIGATION.
AND THEN THE FINAL TERM IS FUND
BALANCE.
SO THE FUND BALANCE, THE BEST
WAY TO THINK OF THIS IS THIS IS
THE BOOK END OF THE CITY'S
FINANCES FOR THE YEAR.
SO WE START A FISCAL YEAR.
WE START A YEAR WITH AN AMOUNT
IN THE FUND, IN THE GENERAL
FUND.
AND WE RECEIVE REVENUE, WHICH
ADDS RESOURCES THAT ARE
AVAILABLE.
THAT COUNCIL MAKES
APPROPRIATIONS AND THE
DEPARTMENTS MAKE MONEY AGAINST
THOSE APPROPRIATIONS, WHICH
REDUCE THE LEVEL OF RESOURCES.
WE ACCOUNT FOR THE RESERVES.
THOSE FUTURE POTENTIAL
OBLIGATIONS.
AND THEN AT THE END, IT'S WHAT
IS LEFT.
SO THERE'S A BEGINNING FUND
BALANCE, THE OPERATIONS OF
GOVERNMENT TAKE PLACE.
AND THEN THERE'S AN ENDING FUND
BALANCE.
AND THAT ENDING FUND BALANCE
CARRIES INTO THE NEXT YEAR.
AND THEN WE GO THROUGH THE
CYCLE AGAIN.
AND YOU'LL SEE THIS PATTERN AND
THE TABLES THAT WE'LL LOOK AT
IN A FEW SLIDES.
>> MIGHT BE HELPFUL,
COLLEAGUES, TO HAVE OUR
COLLEAGUES KEEP PAGE 3 OPEN.
JUST IN CASE YOU WANT THAT
GLOSSARY OF TERMS WITH YOU, THE
WHOLE TIME.
>> THANK YOU, CHAIR MOSQUEDA.
AND THEN THE -- SOME ACRONYMS
THAT I WILL POSSIBLY REFER TO
THROUGHOUT ARE GF.
SO THAT'S GENERAL FUND.
CBO IS THE CITY BUDGET OFFICE.
I'LL JUST USE FINANCIAL PLAN,
INSTEAD OF SAYING SIX-YEAR
FINANCIAL PLAN.
THAT IS TECHNICALLY HOW MANY
YEARS ARE INCLUDED.
AND THEN OFFICE OF ECONOMIC AND
REVENUE FORECAST.
OKAY.
NOW WE CAN GO TO THE NEXT
SLIDE.
THANK YOU.
SOME OF THIS HAS ALREADY BEEN
COVERED IN PRIOR COMMENTARY.
WHAT IS A FINANCIAL PLAN.
IT IS A TABLE OR SET OF NUMBERS
THAT APPLIES THAT MAKE THAT WE
PROJECT WHAT FUTUE REVENUES
AND EXPENDITURES WILL LOOK
LIKE.
AND IN MAKING DECISIONS ABOUT
WHAT NUMBERS TO USE, WE ALSO
CAN REVEAL WHAT THE ECONOMIC
TRENDS THAT ARE PROJECTED, WHAT
THE IMPACT THOSE TRENDS HAVE ON
BOTH BUDGETS AND REVENUES IN
THE PLAN.
AND WHEN YOU LOOK INTO LONGER
TERM, YOU CAN IDENTIFY
CHALLENGES OR POTENTIAL
OPPORTUNITIES THAT GIVE YOU
MORE INSIGHT AND DECISIONS THAT
YOU'RE MAKING IN THE CURRENT
YEAR.
IT'S TO RECOGNIZE THE FUTURE
IMPLICATIONS OF DECISIONS BEING
MADE IN THE NOW.
AND HOW TO RECOGNIZE THAT THOSE
CHALLENGES OR OPPORTUNITIES
EXIST AND STRATEGIZE AND A
BETTER WAY TO STRATEGIZE THE
CURRENT YEAR DECISIONS WITH
SITE SIGHT ON THE LONGER TERM.
>> ALSO THIS IS EQUAL
IMPORTANCE.
THE REGULAR REVIEW, AND THIS IS
THE FIRST STEP ON WHAT IS GOING
TO BE A REGULAR PROCESS OF
REVIEWING THE PLAN, SEEING HOW
THINGS CHANGE.
SEEING HOW THE DECISIONS IMPACT
THE RESULTS.
AND JUST KIND OF INFORMING FOR
THE PUBLIC AND FOR THE COUNCIL.
HOW THOSE DECISIONS IMPACT.
THERE IS FACTORS THAT IMPACT
THE PLAN.
AFFECT THE DECISIONS BEING
MADE.
IT'S KIND OF A FEEDBACK LOOP.
BUT IT'S ALSO NOT JUST THE
DOCUMENT, BUT THE PROCESS
PUTTING THE DOCUMENTS TOGETHER.
>> COLLEAGUES, ALSO FLAG THIS
AS ONE OF MANY EFFORTS THAT
CENTRAL STAFF HAS BEEN WORKING
ON IN PARTNERSHIP WITH OUR
OFFICE.
AND SOME OF THE CONVERSATIONS
I'VE HAD WITH DIRECTOR DINGLEY
AS WELL, ABOUT OVERALL, THE
DESIRE TO MOVE FROM A
12-MONTH ADOPTIVE BUDGET AND
SUBSEQUENT 12-MONTH INDOORS
BUDGET.
WE'D LOVE TO MOVE SOMETHING
THAT LOOKS MORE LIKE BIANNUAL
BUDGETING.
I'D ALSO LOVE TO MAKE SURE THAT
OUR FISCAL NOTES.
I KNOW THERE HAVE BEEN UPDATES.
THANK YOU COUNCILMEMBER FOR
YOUR WORK ON THAT.
I'M INTERESTED IN FISCAL NOTES
THAT HAVE A SIX-YEAR OUTLOOK.
[ INAUDIBLE ] AND WE KNOW THAT
THAT IS GOING TO TAKE SOMETIME
AND WORK TO SEE HOW WE CAN WORK
IN PARTNERSHIP WITH THE
DEPARTMENTS AND CPO, AS WE
DEVELOP LEGISLATION TO REALLY
HAVE THAT SIX-YEAR OUTLOOK AS
PART OF LEGISLATION AS WELL.
BUT THIS IS ONE COMPONENT OF A
BROADER CONSERVATION WE'VE HAD
OVER THE LAST TWO YEARS AS I'VE
BEEN BUDGET YEAR ABOUT HOW TO
GET THE SIX-YEAR LOOK.
NOT JUST FOR BUDGETING
DISCUSSIONS IN THE FALL.
BUT HOW WE CAN DO THAT ON A
ROUTINE BASIS AS WELL.
THOSE ARE SOME THINGS THAT ARE
STILL IN THE WORK.
BUT THAT TYPE OF WORK ON
INDIVIDUAL LEGISLATION IN
COMBINATION WITH THE REGULAR
REVIEW OF A SIX-YEAR OUTLOOK
WILL HELP PROVIDE A MORE
COMPLETE ANALYSIS AS WE
CONTINUE DOING THE WORK FOR
CITY OF SEATTLE.
DIRECTOR DINGLEY, PLEASE GO
AHEAD.
>> THANK YOU, CHAIR.
I WANT TO HIGHLIGHT SOMETHING
THAT TOM SAID.
THAT FINANCIAL PLANS ARE A
POINT IN TIME.
SO THESE NUMBERS WILL NATURALLY
SHIFT OVER TIME.
THEY'RE BUILT ON THE BEST
INFORMATION AT THE TIME THEY
WERE CREATED.
SO IN SOME WAYS, THAT CAN BE
UNSATISFACTORY.
BECAUSE NOT ALL THE ANSWERS ARE
AVAILABLE WHEN IT IT'S BEING
BEING PROVIDED.
JUST SOMETHING TO KEEP IN MIND
AS YOU'RE WORKING THROUGH THIS.
REAL QUICK IF I MAY, I WANT TO
GO BACK TO THE COMMENTS AT THE
TOP, ABOUT WHERE THIS SHOWS UP
IN THE BUDGET.
CBO LOOKS AT HOW WE WORK WITH
BUDGETS.
AND AS MANY YEARS AS I'VE BEEN
HERE AND LONG BEFORE MY TIME.
THIS IS SOMETHING FOR THE
PUBLIC.
FOR THE COUNCIL TO UNDERSTAND
WHAT IT IS WE WANT YOU TO DO
FOR THE PROJECT.
WE WOULD BE HAPPY TO CONTINUE
TO WORK WITH YOU ON HOW THAT IS
CREATED.
WE WANT TO MAKE SURE THOSE ARE
REPRESENTED IN WAY A THAT IS
USEFUL.
SO THANK YOU FOR THAT.
>> THANK YOU.
SO NOW WE'LL START LOOKING AT
THE ACTUAL, SOME OF THE
FINANCIAL PLANS, BOTH
HISTORICAL AND REVISED.
THERE WILL BE THREE OF THESE
TABLES.
THIS FIRST ONE IS THE FINANCIAL
PLAN THAT WAS INCLUDED WITH THE
SO THIS IS ESSENTIALLY WORK
THAT WAS COMPLETED IN LATE
2019.
PRIOR TO THE PANDEMIC.
I JUST, KIND OF TO PROVIDE
CONTEXT OR HOW TO READ THE
TABLE, I'LL JUST WALK THROUGH A
COUPLE OF COLUMNS TO SHOW HOW
IT WORKS.
BECAUSE AGAIN, THIS WILL BE THE
FIRST OF THREE OF THIS TYPE OF
TABLE.
THOUGH, WE WILL HIGHLIGHT
DURING THE PRESENTATION, THE
MOST IMPORTANT ROWS FROM OUR
PERSPECTIVE, TO LOOK AT, FROM
THE PURPOSES OF A BALANCED
BUDGET AND ALSO LONGER-TERM
FISCAL SUSTAINABILITY.
SO BEYOND, IN FUTURE SLIDES OR,
IN FACT, PROBABLY IN THIS
SLIDE, WE'LL HONE IN ON THE KEY
DETAILS.
BUT I JUST WANTED TO GO REAL
QUICK ON HOW THIS WORKS.
SO AGAIN, GOING BACK TO SOME OF
THE TERMS I DEFINED EARLIER, WE
START WITH A FUND BALANCE IN
2020 IN THIS CASE.
ADD IN $1.4 BILLION OF
REVENUES.
THERE WAS $1.5 BILLION OF
ADOPTED EXPENDITURES, WHICH WAS
A GAP OF NEGATIVE $19 MILLION,
BRINGING THAT ORIGINAL STARTING
FUND BALANCE DOWN TO 59.6
MILLION DOLLARS.
THERE WERE $59.6 OR SO MILLION
WORTH OF RESERVES, BUT YET NOT
SPECIFICALLY BUDGETED.
BRINGING THE UNRESERVED BALANCE
OR FINAL FUND BALANCE TO $13.
SO REPRESENTS THE BALANCED
BUDGET FOR 2020.
THEN MOVING INTO 2021.
THE STARTING FUND BALANCE IS
THE ENDING BUDGETARY FUND
BALANCE.
NOT INCLUDING THE RESERVES.
AND NEN ADDS $1.46 BILLION OF
REVENUE.
AGAINST $1.5 BILLION OF
EXPENDITURES.
SO THIS IS KIND OF THE INITIAL
KEY TAKEAWAY OF THIS SLIDE, IS
THAT BASED ON THE PROJECTIONS
AT THAT TIME.
SO WINTER 2019.
THE 2021 PROJECTION WAS SHOWING
A GAP OF NEGATIVE $41 MILLION.
AND BASED ON THE VARIOUS
ASSUMPTIONS THAT WERE BEING
APPLIED AT THAT TIME.
THAT GAP WAS SHOWN TO PERSIST
IN FUTURE YEARS, SHOWING ABOUT
A $36 MILLION GAP IN 2023.
AND THEN, YOU KNOW.
SO THAT'S THE SORT OF LONGER-
TERM SUSTAINABILITY.
AND EACH ONE OF THOSE GAPS,
THEN, BRINGS THE PROJECTED
ENDING FUND BALANCE DOWN IN THE
PLAN.
SO THE, GIVEN THOSE NEGATIVE
OPERATING GAPS PER YEAR, THE
ENDING BALANCE WOULD HAVE BEEN
NEGATIVE 41 AND THEN GROW INTO
NEGATIVE 79.
AND THEN FINALLY, AT THE END OF
2023, SO AT THE END OF THIS
PLAN, IT WOULD HAVE BEEN
SHOWING THAT NEGATIVE, OR DID
SHOW A NEGATIVE $116 MILLION IN
THE GENERAL FUND.
SO THIS IS JUST TO SHOW THAT
AGAIN, BASED ON A LOT OF THAT.
A LOT OF IMPERFECT BUT BEST
AVAILABILITY INFORMATION AT THE
TIME.
WHEN 2020 BUDGET WAS ADOPTED,
IT WAS PROJECTING AN OPERATING
GAP OF AROUND $39 MILLION.
AND FINAL ENDING BALANCE OF
$116 MILLION.
SO THAT'S IMPORTANT CONTEXT TO
START OFF, BECAUSE AS WE KNOW,
WE WILL SEE WHAT HAPPENS AFTER,
NOT AFTER BUT BASED ON CHANGES
FROM THE PANDEMIC.
SO WHETHER OR NOT THESE
PROJECTIONS CAME TRUE OR NOT,
IT'S UNCERTAIN BECAUSE A LOT OF
THE ASSUMPTIONS CHANGE AND WHAT
WE HAVE TO PLAN
>>> KNOWN AT LEAST IN 2019.
AND SO, YOUR SIDE TALKS ABOUT
HERE THE 2020 ADOPTIVE BUDGET,
ANY REMINDER ALSO AS WELL, IT
IS DELIBERATED IN THE FALL
PRIOR.
SO THIS IS THE 2019 ACTIONS
THAT WERE TAKEN BEFORE I WAS
BUDGET CHAIR AS WELL.
BUT I THINK IT HAS THE NEXT SIX
MONTHS WOULD THEN SHOW US,
AFTER THE BUDGET WAS THEN
ADOPTED THE PANDEMIC IT.
SO HAVING THIS AS A BASELINE
UNDERSTANDING FOR THE SITUATION
WE WERE HEADED INTO, PRIOR TO
THE UPHEAVAL IN THE MARKET AND
POPULATION HEALTH AND HEALTH OF
LOCAL ECONOMY, IT IS IMPORTANT
TO SHOW THIS IS THE STARTING
POINT PRE-COVID AND THEN WE
HAVE FACTORS TO ACCOUNT FOR IN
THE UPCOMING YEARS.
SO WHEN YOU SEE THE ADULT OF
BUDGET LIBERATED AND DISCUSSED
IN 20 NIGHT TEEN.
OKAY.
-- 2019.
OKAY.
THANK YOU.
>> AND JUST TO GO BACK, THAT WAS
REFERENCING PAGE 4, WITH THE
MEMO.
I WILL DO BETTER IN REFERENCING
BACK TO A LOT OF THE UNDERLYING
DETAIL, BECAUSE I HAVE NOTES TO
DO THAT.
SO MOVING TO THE NEXT SLIDE, IF
WE COULD, WE WILL SHOW, AND
THIS IS KIND OF, YOU KNOW,
FOLLOWED ON BY WHAT I JUST
SAID, PAGE 5 OF THE DETAILED
MEMO.
THIS FINANCIAL PLAN SHOWS THE
MOST RECENT FINANCIAL PLAN
INCLUDED IN THE 2022 ADOPTIVE
BUDGET BOOK.
THIS IS, THESE ARE THE NUMBERS
THAT YOU WILL SEE LOOKING AT
THE INDEPENDENT RECORDS FROM
THE CHAIR.
IT SHOWS HOW THINGS HAVE
CHANGED AND WE WILL GO INTO
THOSE TAKEAWAYS AND SOME FURTHER
COMMENTS.
BUT I JUST WANT TO POINT OUT A
POINT OF CONSIDERATION WHEN
LOOKING AT SOME OF THESE
NUMBERS.
I WILL REFERENCE POINT IN THIS
TABLE, AND THERE IS A REASON
WHY I AM REFERENCING THOSE.
FIRST IS, I BELIEVE THE CHAIR
MENTIONED OUR BUDGET PROCESS.
RC W 32, 30 5A, ADOPT A BUDGET
FOR THE NEXT FISCAL YEAR,
BALANCING RESOURCES WITH
ADOPTING APPROPRIATED
EXPENDITURES.
SO THAT IS THE STATE LAW, SO
THAT REQUIRES THAT AT THE END
OF THE PROJECTION OF THE BUDGET
ADOPTED FOR 2023 WILL BALANCE
TO THE BOTTOM NUMBER IN THE
TABLE.
BASICALLY MAKE THE BOTTOM
NUMBER IN 2023 ESSENTIALLY ZERO.
THAT IS THE STATE LEGAL
REQUIREMENT.
RESOLUTION 28, 2885, THE 1994
PUTS IN PLACE A MODIFIED
BIANNUAL BUDGET PROCESS THAT
THE CITY OF SEATTLE HAS
TRADITIONALLY BUDGETED
ACCORDING TO.
THERE WAS A TEMPORARY STAY OR
HOLD ON THE PROCESS DURING THE
PANDEMIC GIVEN THE UNCERTAINTY
GO CURRENT PROCESS FOR THE
CURRENT FALL WOULD NOT ONLY
ADOPT UNDER THE LEGAL STATE
REQUIREMENT AND THE ADOPTED
BUDGET FOR 2023, BUT ALSO
ENDORSE A FINANCIAL PLAN OR
BUDGET FOR 2024.
THAT WOULD PROVIDE THE SAME
LEVEL OF BALANCE.
I WANT TO POINT THAT OUT
BECAUSE THE NUMBERS THAT I WILL
REFERENCE WILL BE LARGELY THE
2023 AND 2024 NUMBERS, WITH
REGARDS TO THE ENDING BALANCE.
IS THOSE ARE THE ONES THAT THE
EXECUTIVE AND CITY COUNCIL WILL
BE CONSIDERING AS BALANCED FOR
THE UPCOMING BUDGET.
SO I JUST WANT TO FOCUS NOW,
AGAIN, AS I MENTIONED WE WILL
FOCUS AND KEY IN ON THE MOST
IMPORTANT NUMBERS ON THE
TABLES.
AND THIS IS A KEY ONE, WHICH IS
THE PROJECTED OPERATING GAP
BASED ON THE ADOPTED BUDGET AND
ASSUMPTION THAT ARE APPLIED IN
THE PLAN AT THIS TIME.
AND THIS WILL BE A FAMILIAR
NUMBER.
RIGHT NOW THERE IS APPROXIMATELY
100, WELL, AT THE TIME OF THE
BUDGET ADOPTION THERE WAS
APPROXIMATELY $146 MILLION
PROJECTED GAP IN 2023.
AND A SIMILAR NUMBER PROJECTED
FOR 2024.
ONCE AGAIN, MEANING THAT THE
PROJECTED REVENUES WERE $146
MILLION LESS THAN THE PROJECTED
EXPENDITURES IN EACH OF THOSE
YEARS.
AND THEN DRAWING FROM THE
STARTING BALANCE, THE COUNTY
FOR THE GAP IN EACH ONE OF
THOSE YEARS MEANS THAT THE
ENDING FUND BALANCE WOULD BE
PROJECTED TO BE $144 MILLION
NEGATIVE IN 2023, GROWING TO
-290 MILLION IN 2024.
AGAIN THOSE ARE THE NUMBERS
THAT THE BUDGET WOULD BE
EXPECTED TO BALANCE TO AND THAT
SHOULD BE PROBABLY A FAMILIAR
NUMBER, AT THE EARLIER STAGE IN
THE YEAR, IN TERMS OF THE
FINANCIAL SITUATION WITH THE
GENERAL FUND OF.
LOOKING AT THE NEXT BUDGET
CYCLE.
AND LARGELY THE REASON WHY THIS
GAP EXISTS IS ACCOMMODATION OF
THREE FACTORS, ONE, THE 2020
BUDGET, ADOPTIVE BUDGET
FINANCIAL PLAN SHOWN, WE HAD A
PRE-EXISTING CONDITION OF A 39
OR SO MILLION DOLLAR OPERATING
GAP.
THE COVID PANDEMIC, IT HIT THE
WORLD AND THE CITY AND THE
STRUGGLES AND CHALLENGES, SOME
OF WHICH HAVE RECOVERED BUT NOT
ALL RECOVERED TO PRE-PANDEMIC
LEVEL, WE DO NOT HAVE THE SAME
PRODUCTION THAT WE WERE SEEING
IN 2020.
AND IN RECENT BUDGETS THOSE GAPS
HAVE BEEN SOLVED, THE MOST
RECENT BUDGET, THE GAPS HAVE
BEEN SOLVED BY USE OF ONE TIME
REVENUES.
AND THE FUTURE OF THOSE ONE
TIME REVENUES ARE NOT AVAILABLE
FOR USE.
AND SO NOW I WILL GO TO THE
THIRD TABLE.
SO THE THIRD FINANCIAL PLAN,
ACTUALLY I WILL TALK SOME
CHANGES.
IT IS IMPORTANT.
BECAUSE THE NUMBERS AS YOU WILL
SEE HAVE SHIFTED IN A GOOD
DIRECTION AND THERE IS A NUMBER
OF REASONS FOR THAT.
SO REALLY I AM FOCUSING ON WHAT
HAPPENED IN THE 2021, SO
ORIGINALLY THERE WAS A
PRODUCTION OF WHAT 2021 WOULD
LOOK LIKE.
DEPARTMENT OF FINANCE AND
ADMINISTRATIVE SERVICE OF
STAFF, HAVING DONE THE WORK TO
ASSESS HOW MUCH IS LEFT OVER
FROM 2021.
SO HOW EXPENDITURES APPEAR
COMPARED TO ESTIMATES, AND HOW
MUCH MONEY IS CARRIED FORWARD
IN THE FUTURE YEARS, AND WE
ASSESS WHAT RESOURCES KIND OF
INCREASE THE FUND BALANCE
STARTING FOR 2022.
SO HAS HEARD BY THE HOUSING
COMMITTEE, THAT IS APRIL 20th
PRESENTATION, THE GENERAL FUND
CAME IN AT 33 1/2 MILLION
DOLLARS ABOVE REVISED ESTIMATES.
SO THAT IS A GOOD THING AND
ADDS MONEY, ONE-TIME RESOURCES
AVAILABLE FOR 2022.
AN EVEN LARGER NUMBER, $231
MILLION, OF THE DIFFERENCE
BETWEEN THE BUDGET IS
EXPENDITURES AND ACTUALS.
THIS MEANS THE CITY SPENT $231
MILLION LESS THAN WHAT WAS
PROJECTED IN 2021.
THAT THERE ARE A NUMBER OF
REASONS FOR THAT, PART OF IT IS
THAT PRIOR OBLIGATIONS,
COMMITMENTS, THAT ARE EITHER
LEGAL OR CONTRACTUAL IN NATURE,
OR COUNCIL PRIORITIES WERE NOT
FULLY COMPLETED IN 2021.
THOUGH THE INTENT IS TO
COMPLETE THOSE.
SO THESE WILL BE COVERED IN AN
UPCOMING COUNCIL BILL.
COUNCIL BILL 1020306, WHICH
WILL BE WITH THE NEXT MEETING
ON MAY 17th.
IT WILL DETAIL THIS INFORMATION
FOR YOU.
BUT FOR THE PURPOSES OF THE
PLAN, WHAT WE HAVE DONE IS SEND
A PORTION OF THE MONEY THAT IS
AVAILABLE AT THE END OF 2021 IS
GOING TO BE CARRIED OVER INTO
2022.
AND THERE IS A FEW DIFFERENT
TYPES OF CARRYFORWARDS,
AUTOMATIC ONES THAT HAVE
SPECIFICALLY PRIOR APPROVAL BY
COUNCIL TO CARRY INTO TWO
YEARS, AND THEN LEGISLATIVE
ONES THAT ARE PART OF THE BILL
THAT I REFERENCED, THAT WILL BE
SUBMITTED AT IT REQUEST TO
CARRY FORWARD.
THEN THERE IS ADDITIONAL GRANT
REVENUE THAT IS ANTICIPATED THAT
OFFSETS A PORTION OF THAT
MONEY.
BUT AT THE END OF THE DAY $134
MILLION OF THAT MONEY NETS OUT,
THE MONEY, THE RESOURCES THAT
WOULD TRANSFER FROM 2021 TO
2022.
THE GOOD NEWS IS THERE IS STILL
A POSITIVE TO GAIN IN STARTING
THE FUND BALANCE OF $120
MILLION BASED ON 2021 FINANCIAL
RESULTS.
AND IN THE NEXT SLIDE I BELIEVE
I WILL COVER SOME PORTION OF
THAT, HOW IT WILL BE USED OR IS
PROPOSED TO BE USED TO
REPLENISH THE CITY'S REVENUE
STABILIZATION FUND.
>> SO JUST A QUICK RECAP ON THE
STABILIZATION FUND.
SORRY.
I NEED TO TURN MY LIGHTS BACK
ON.
SO AT THE END OF 2021, AGAIN
THIS IS PAGES 6 THROUGH 7 OF
THE MEMO WITH MORE DETAILED
DISCUSSION OF THIS.
AT THE END OF 2021, TWO USES OF
THE EMERGENCY FUND AND THE
STABILIZATION FUND, THERE WAS A
COMBINED BALANCE OF ABOUT 39
MILLION DOLLARS.
AND THIS WAS, USES OF THOSE
FISCAL RESERVES TO ADDRESS
CHALLENGES FROM COVID PANDEMIC.
PRIOR TO THE START, PRIOR TO
THE 2020 PROCESS, THERE WAS
ABOUT $127 MILLION THAT FUNDED
THOSE RESERVES.
HOWEVER, GIVEN THE USES, THE
ADOPTED BUDGET INCLUDED SOME
PAYBACKS.
SO IT WAS THE RECOGNITION OF
THAT, THE NEED FOR USE IN THE
RESERVES NO LONGER EXISTED AND
NOW THE CITY COULD BE BEGIN TO
PROCESS THOSE LEVELS.
THE ADOPTIVE PLAN, ADOPTIVE
FINANCIAL PLAN FOR 2022
INCLUDED BASICALLY THE
ASSUMPTIONS THAT ARE INCLUDED
IN THE 2022 ADOPTED BUDGET.
SO THE RESOLUTION 32024,
TEMPORARILY OR PERMANENTLY
CHANGED THE EMERGENCY FUND
REPLENISHMENT.
PRIOR TO THAT CHANGE IT WOULD
HAVE BEEN ANTICIPATED THAT THE
CITY WOULD HAVE FULLY REPLENISH
THE EMERGENCY FUND, WHICH WAS
ON THE ORDER OF $60 MILLION TO
THE ORIGINAL LEVELS AFTER USE.
THE CHANGE THROUGH THE
RESOLUTION 32024, INSTEAD PUT
IN PLACE A FIVE-YEAR
REPLENISHMENT TIMELINE.
IT DID NOT SPECIFICALLY IMPLY
WHITE THE TIMING OR THE AMOUNTS
OR FOR EACH PARTICULAR YEAR.
HOWEVER THE FINANCIAL PLAN AND
ADOPTIVE BUDGET REASONABLY
INCLUDED $10 MILLION PER YEAR.
WHICH CONTINUES THE AMOUNT IN
THE 2022 ADOPTIVE BUDGET IN THE
FUTURE YEARS.
SO THERE WOULD BE A TOTAL OF
$40 MILLION ADDED BACK TO THE
EMERGENCY FUND.
REVENUE STABILIZATION HAS A
DIFFERENT POLICY.
IT IS BASED ON ANNUAL PROJECTED
REVENUE COLLECTIONS.
HOWEVER THE ADOPTED BUDGET
INCLUDED THE AMOUNT OF $15.4
MILLION, HIGHER THAN WHAT WAS
STRICTLY REQUIRED BY THE POLICY.
HOWEVER, IT WAS THE COUNCIL'S
DECISION TO PUT MORE IN THE
REVENUE STABILIZATION FUND THAN
WAS REQUIRED.
THE ADOPTIVE BUDGET FINANCIAL
PLAN CONTINUED THE ASSUMPTION,
$15.4 MILLION PER YEAR, WHICH
WOULD PUT $61.2 MILLION INTO
THE REVENUE STABILIZATION FUND
THROUGH 2025.
THE MEMO ON PAGE 6 TALKS ABOUT
HOW THESE PLANNED CONTRIBUTIONS
WOULD HAVE REPLENISHED EACH OF
THE FISCAL BRASSIERES BACK TO
POLICY LEVELS AS STATED IN THE
FISCAL POLICY.
THE EMERGENCY FUND WOULD HAVE
BEEN ON THE ORDER OF 93% OF
WHAT THE POLICY LEVEL WOULD
HAVE BEEN AT 2025.
AND THE STABILIZATION FUND
WOULD BE AT 97th PERCENT BASED
ON THIS PLAN OF REPLENISHMENT.
OKAY, WITH THAT THINGS HAVE
CHANGED AND THE KEY AND NOTABLE
CHANGE IS THAT GIVEN THE LEVEL
OF RESOURCES AVAILABLE AT THE
END OF 2021, THERE IS THE
EXISTING FISCAL POLICY FOR THE
REVENUE STABILIZATION FUND, A
REQUIREMENT THAT 50% OF
UNRESERVED BALANCES AT YEAR-END
BE DEPOSITED TO THE REVENUE
STABILIZATION FUND.
BASED ON CALCULATIONS FOR CP OH,
WOULD BE ABOUT $30 MILLION.
THERE ARE DIFFERENT LAYERS OF
GOOD NEWS IN THE PRESENTATION
BUT BY WAY OF REALLY GOOD NEWS,
THIS DEPOSIT WOULD FULLY
DEPOSIT THE REVENUE
STABILIZATION FUND IN 2022,
ESSENTIALLY MANY YEARS AHEAD OF
THE PLAN.
THEN AT THAT TIME FUTURE
CONTRIBUTIONS TO THE REVENUE
STABILIZATION FUND, WHICH WOULD
BE DEPOSITED TO THE REVENUE
STABILIZATION FUND TO KEEP UP
WITH GROWTH AND REVENUE.
THAT ACTUAL CHANGE IN THE FISCAL
POLICY REQUIRES APPROPRIATION
FROM CITY COUNCIL.
WE MADE THE ASSUMPTION IN THESE
PLANNING, THE REVISED PLAN THAT
WE WILL SHARE WITH YOU SHORTLY,
AT THE DECISION THAT WE WILL
ANTICIPATE WILL BE PART OF THE
SUPPLEMENTAL, WHICH WE HAVE YET
TO RECEIVE BUT WILL RECEIVE IN
COMING YEARS.
IT WILL INCLUDE A TRANSFER OF
THAT AMOUNT OF MONEY TO THE
REVENUE STABILIZATION FUND,
FULLY REPLENISHMENT TO THE
POLICY.
NEXT, ANOTHER, MORE IN THE VEIN
OF PROJECTION CHANGES, CHANGES
IN ASSUMPTIONS FOR THE FUTURE.
THIS SPECIFICALLY IS INFLATION.
SO IF YOU HARKEN BACK TO THE
PRESENTATION FROM CBO AND OERF
ABOUT REVENUE UPDATE ON APRIL
20th, THERE WAS ALSO
SIGNIFICANT IMPACTS WITH COST
INCREASES THROUGH INFLATION
HAVE HAD AN PROJECTED HAD ON
CITY EXPENDITURE LINES.
SO THE INFORMATION THAT DRAWS
AND IS MORE DETAILED ON PAGES
10 AND 11 OF THE MEMO SHOWS HOW
THE INFLATION EXPECTATIONS HAVE
CHANGED IN THE FINANCIAL PLAN.
SO THIS IS COMING FROM THE
FORECAST OFFICE, AND AFTER THEY
UPDATED WHAT THEIR NUMBERS ARE,
THESE SHOW THAT IN 2023 AND 2024
THERE ARE .8% HIGHER INFLATION
IN EACH YEAR, THEN WAS
ANTICIPATED WHEN THE ADOPTED
BUDGET FINANCIAL PLAN WAS
GENERATED.
SO THAT IS FAIRLY MODERATE BUT
STILL AN INCREASE IN THE
ASSUMPTION OF THOSE YEARS.
WHAT IS MORE ACUTE IS THAT AS
YOU READ IN THE PRESS AND SEE
IN THE NUMBERS IS THAT
INFLATION IS REALLY MUCH HIGHER
IN THE CURRENT YEAR.
SO RIGHT NOW, THAN IT WAS
ORIGINALLY ANTICIPATED TO BE.
THE TABLE AT THE LOWER PAID
PART OF THE SLIDE SHOWS THAT
THE INFLATION EXPECTATION AT
THE TIME OF THE BUDGET WAS ON
THE ORDER OF 3.2%, THE APRIL
FORECAST NUMBER SUGGESTED THAT
INFLATION HAS BEEN IN FACT
CLOSER TO 7%, WHICH IS A 3.8%
INCREASE.
SO FOR THE VERSES OF BUILDING
THAT INTO THE PLAN, TO ALLOW
FOR THE FACT THAT COSTS ARE
HIGHER, THAT 3.8% HAS BEEN
ADDED TO THE 23 PROJECTION.
THE 2022 NUMBER IS THE CURRENT
ADOPTED BUDGET NUMBER WITH SOME
SPECIFIC LEGISLATIVE REVISIONS
INCLUDED.
SO I DID NOT FEEL COMFORTABLE
ADDING IT TO THE 2022, TO
INFLATE WITH THAT 2022
EXPECTATION IN THIS PLAN WOULD
BE.
THOUGH, YOU KNOW, THAT NUMBER,
IF THE COST INCREASES ARE
HIGHER, THERE COULD CERTAINLY
BE A SUPPLEMENTAL CHANGE THAT
IS REQUESTED.
IT IS ENTIRELY POSSIBLE.
FOR PURPOSES OF THE PLANNING
THAT WE ARE DISCUSSING TODAY,
THE HIGHER PLANNING HAS BEEN
BUILT INTO 2023.
AND THEN TO GO INTO THE WEEDS
ABOUT INFLATION, IT LARGELY
AFFECTS LABOR COSTS, I.T.
COSTS, FACILITIES AND IN THE
MODEL, IN THE ECONOMY IN
GENERAL, THOSE ARE THE AREAS
WHERE WE ARE BUYING SERVICES
FROM EXTERNAL PROVIDERS AND WE
ARE STILL AT THE WHIMS OF HOW
THE COST INCREASES ARE
FUNNELING THROUGH THE ECONOMY.
AND ALSO TO POINT OUT THAT
INFLATION IS NOT AN EQUIVALENT
ADJUSTMENT TO BOTH THE REVENUES
AND EXPENDITURES IN THE MODEL.
IT IS SOMETHING THAT UNDERLIES
AND PERMEATES THROUGH
PROJECTIONS OF BOTH BUT IT IS
NOT JUST AS EASY AS SAYING, WE
ADD 1.3, FOR EXAMPLE, IN 2024
TO BOTH LINES, TO BOTH REVENUES
AND EXPENDITURES.
IT IS MORE COMPLICATED.
IF YOU THINK ABOUT REVENUES,
LOOKING AT SOMETHING LIKE SALES
TAX, THERE ARE SOME GOODS AND
SERVICES IN THE ECONOMY THAT
ARE NOT SUBJECT TO SALES TAX
LIKE GAS, GASOLINE.
AND FOOD.
AND THE COST ARE GOING UP IN
THOSE ITEMS, THAT LEAVES LESS
DISCRETIONARY FOR PEOPLE TO BUY
THE ITEMS THAT WOULD BE SUBJECT
TO THE TAX.
SO JUST EVEN, THERE ARE
CERTAINLY MANY MORE EXAMPLES OF
HOW INFLATION DIFFERS IN
AFFECTS THE ECONOMY IN
DIFFERENT WAYS.
THOUGH IN GENERAL IT IS NOT
VIEWED AS A POSITIVE, GIVEN THE
HIGH LEVELS IN 2022.
>> DR. ALY PENNUCCI?
>> I WOULD ADD IN THAT WHAT TOM
IS GOING OVER, INFORMING THE
FINANCIAL PLAN, I ALSO WANT TO
POINT BACK TO COMMENTS I THINK
BOTH DIRECTOR DINGLEY, CHAIR
MOSQUEDA AND TOM HAD MADE ABOUT
THE DYNAMIC NATURE OF THESE
NUMBERS.
AND THAT CBO IS RIGHT NOW IN
THE PROCESS OF LOOKING AT THE
BASELINE EXPENDITURES AND WHAT
THE PROJECTED INCREASES MAY BE
DUE TO INFLATION AND OTHER
OPERATIONAL NEEDS.
SO I JUST WANT TO SAY AGAIN AS
WE ARE ABOUT TO SHOW THE
REVISED FINANCIAL PLAN, THIS IS
A POINT OF TIME WHERE WE MAY BE
UNDERESTIMATING THE GROWTH AND
BASELINE EXPENDITURES IN THE
FINANCIAL PLAN.
TOM DID INCLUDE SOME
ADJUSTMENTS TO TRY TO ACCOUNT
FOR SOME OF THE ANTICIPATED
GROWTH.
BUT BECAUSE CBO IS IN THE
MIDDLE OF THE PROCESS, WE DO
NOT KNOW WHAT THE ACTUAL
NUMBERS WILL BE IN THE NUMBERS
WILL CONTINUE TO EVOLVE AND WE
MAY COME BACK IN AUGUST AND
SHOW GREATER INCREASES AND
EXPECTED PRETENDERS PROJECTED
EXPENDITURES FOR 23 AND 24.
>> A GOOD REMINDER.
THANK YOU SO MUCH.
DR. DINGLEY, PLEASE.
>> THANK YOU SO MUCH INTERIM
DIRECTOR ALY PENNUCCI.
I RECOGNIZE THE QUESTION OR
COMMENT, IN ADDITION TO THE
INFLATION COST, THERE ARE A
NUMBER OF PRESSURES AND WE CAN
GET INTO THIS IN THE NEXT SLIDE
TOO, BUT THERE ARE A NUMBER OF
PRESSURES ON EXPENDITURES,
INFLATION AND DISRUPTION TO
SUPPLY-CHAIN, IMPACT OF THE WAR
IN UKRAINE, AND DELAYS DUE TO
THE CONCRETE STRIKE, A TIGHT
LABOR MARKET, ALL PUT PRESSURE
ON THE COSTS THAT THE CITY
BEARS AND THE TIMING OF -- ET
CETERA.
WE WILL GET MORE INTO THAT BUT
I WANTED TO PUT IT OUT THERE AS
WELL.
>> THANK YOU SO MUCH.
I WILL READ FROM PAGE 10 HERE,
I THINK IT UNDERSCORES ALL THIS
POINTS.
OTHER CONSIDERATIONS OUTSIDE OF
INFLATION, MIDWAY ON PAGE 10,
SECOND PARAGRAPH.
INCLUDE BUT NOT LIMITED TO
EMPLOYMENT AND POPULATION
TRENDS, WAGE GROWTH, BUSINESS
THE OTHER COMPOSITION AND
CONSUMER PREFERENCES THAT WILL
IMPACT GROWTH AND EACH WILL BE
DIFFERENTLY IMPACTED BY
INFLATION OR FORCES.
THAT IS TRUE ON THE CITY
EXPENDITURE SIDE.
AND THEN THAT IS ALSO TRUE FOR
LIKE OUR SPENDING AND WHAT WE
ARE TRYING TO DELIVER TO THE
CITY AS WELL.
I AM TRYING TO EMPHASIZE YOUR
POINT DIRECTOR DINGLEY, THAT
THIS IS GOING TO HAVE MAYBE A
COMPOUNDING EFFECT ONCE WE HAVE
SEEN WHAT INFLATION IS AS A
STANDALONE AND HOW THE OTHER
FACTORS COME ON BOARD.
ANY ADDITIONAL COMMENTS OR
QUESTIONS ON THAT BEFORE WE
MOVE TO THE BIG SORT OF FORWARD-
LOOKING SLIDES?
ALL RIGHT.
>> THANK YOU OFFER ADDED
COMMENTS, BECAUSE IF THE KIA
POINT IS THAT THIS IS THE
PROJECTION, AND IT IS THE BEST
AVAILABLE DATA AND IT WILL
CERTAINLY CHANGE.
WE WILL CERTAINLY LOOK AT THESE
NUMBERS IN THE FUTURE.
SO LET'S LOOK AT HOW THIS AT
LEAST BASED ON ASSUMPTIONS, HOW
THE NUMBERS HAVE CHANGED.
SO THIS IS THE MOST RECENT WORK
THAT HAS BEEN DONE, IN
COLLABORATION WITH CBO AND HOW
PROJECTIONS OF CHANGED GIVEN A
NUMBER OF FACTORS EVEN THAT I
DISCUSSED IN THE PREVIOUS SLIDE.
BOTH THE ADDED BENEFIT OF
HIGHER FUND BALANCE, AND THE
2022 REVISED PROJECTION.
IF YOU LOOK IN THE REVISED
COLUMN YOU WILL SEE THE THOUGHT
WOULD BE $8 MILLION OF BALANCE,
AND NOW GIVEN THE POSITIVE
FINANCIAL RESULTS, THERE IS
$273 MILLION IN STARTING
BALANCES.
AND THEN ALSO THE REVENUE
FORECAST UPDATE HAS ADDED,
RECEIVED IN APRIL, ADDED ABOUT
$35 MILLION OF RESOURCES PER
YEAR.
TO THE PROJECTION.
ALSO THE PLANNED OR POTENTIAL
CHANGE IN HOW THE RESERVES ARE
REPLENISHED GIVEN THE AMOUNT OF
AVAILABLE TO REPLENISH THE
REVENUE STABILIZATION FUND,
REVERSES THE PLANNED AMOUNT IN
A FEW YEARS.
BUT REALLY, TO JUST FOCUS IF WE
COULD ON THE BOTTOM LINE.
THE NUMBERS, THE KEY NUMBERS OF
THIS TABLE.
IT IS TO FOCUS ON THE OPERATING
GAP AMOUNT AND SO THE 22 NUMBER,
I WILL SAY IT RIGHT OFF THE BAT,
IT IS INCLUDING THE DECISIONS
THAT I DISCUSSED PREVIOUSLY
WHICH ARE THE POTENTIAL
DECISIONS, ESSENTIALLY THE
LEGISLATIVE CARRYFORWARDS AND
THE REPLENISHMENT OF THE FISCAL
RESERVES.
AND THAT USES THE LARGE PORTION
OVERALL.
IT IS ALL FUNDED FROM THE
STARTING BALANCE.
SO WHICH IS KIND OF SHOWS ABOUT
THE DEFICIT AT THE TABLE BUT I
ASSURE YOU IT IS NOT A DEFICIT
IN THE 2022 BUDGET PLAN.
HOWEVER, 2023 AND BEYOND, THESE
ARE PROJECTIONS BASED ON THE
KIND OF NOT ONE TIME BUT MORE
ONGOING ITEMS.
AND THEN A SLIVER OF GOOD NEWS
IS THAT THE OPERATING GAP HAS,
BASED ON THE PROJECTIONS,
DECLINED TO 117 MILLION IN 2023
AND $107 MILLION IN 2024.
AND THEN FURTHER THE ENDING
FUND BALANCE, AT THE END OF
2023, THE LEGALLY ADOPTED
BUDGET YEAR, THE ENDING FUND
BALANCE PROJECTION IS NOW
DECLINING TO $35 MILLION.
AND AT THE END OF 2024, WHICH
WOULD BE THE ENDORSED YEAR, IT
HAS DECLINED AND BASICALLY GONE
DOWN BY MORE THAN HALF.
IT WENT FROM $290 MILLION
NEGATIVE, IN THE ADOPTED
FINANCIAL PLAN, TO $142 MILLION
IN THIS REVISED PLAN.
AND AGAIN THIS IS BASED ON A
WHOLE LAYERED SET OF
ASSUMPTIONS THAT WE ARE MAKING
AND ARE CERTAIN TO CHANGE BOTH
WITH THE REVENUE FORECAST
INFORMATION AND UPDATES
THROUGH THE BASELINE PROFIT THAT
THE DIRECTOR DISCUSSED.
>> LET'S TAKE AN ADDITIONAL
CLARIFYING COMMENT FROM
DIRECTOR ALY PENNUCCI AND THEN
QUESTIONS FROM COUNCIL MEMBERS.
GO AHEAD.
>> THANK YOU.
I WANT TO POINT OUT THAT IT IS
MODESTLY GOOD NEWS TO SEE THE
PROJECTED NUMBER IN 2023, SORT
OF THE ENDING FUND BALANCE OF
-35 MILLION, AND I JUST WANT TO
HIGHLIGHT THIS IS RELYING ON
ONE-TIME FUNDS TO SUPPORT BAY
CITY SERVICES' ONGOING
EXPENDITURES.
IT IS ALSO ASSUMING THAT IN
2023 AND BEYOND THAT THERE IS
NO NEWS NEW SPENDING.
SO ANY OF THE ONE-TIME
EXPENDITURES THAT ARE REGULARLY
INCLUDED IN THE PROPOSED AND
ADOPTED BUDGETS, AS WELL AS ANY
NEW OR EXPANDED PROGRAMS OR
SERVICES COULD NOT BE
ACCOMMODATED OR NOT ASSUMED TO
BE ACCOMMODATED IN THE
EXPENDITURES IN 2023 AND BEYOND.
I JUST WANTED TO HIGHLIGHT THAT
POINT AS IT RESTRICTS SORT OF
OPTIONS AVAILABLE TO THE CITY,
IN TERMS OF RESOURCES AVAILABLE
TO ADDRESS, YOU KNOW, ISSUES IN
THE COMMUNITY.
>> ADDITIONAL CLARIFYING
COMMENT AND THEN WE WILL GO TO
COUNCILMEMBER NELSON.
>> THANK YOU.
TO ADD TO DIRECTOR ALY
PENNUCCI'S POINT, THIS DOES
NOT ASSUME ROOM FOR NEW GROWING
OR UNEXPECTED NEEDS.
I THINK THE I.T.
PROJECT, THAT FOR WHATEVER
REASON IS RUNNING OVERTIME, NOT
PICK ON I.T., OR JUST SOME
JUDGMENT IN CLAIMS ITEM, THAT
COMES OUT OF THE BLUE, THOSE
ARE NOT ACCOUNTED FOR HERE
EITHER.
SO THERE IS NO BUFFER HERE TO
ABSORB THOSE UNEXPECTED, IN
ADDITION TO NEW ITEMS.
>> THANK YOU.
AND I WILL JUST ADD THAT IT
ASSUMES THE SAME LEVEL OF
SPENDING ON CERTAIN ITEMS THAT
WE PERCEIVE TO BE ONGOING.
SO THERE IS A CONVERSATION TO
BE HAD THERE.
AND ALSO AS YOU CAN TELL DOES
NOT YET ASSUMED ADDITIONAL
REVENUE STREAMS.
THAT IS FOR CONVERSATION.
BUT I WANT TO MAKE SURE THAT
FOLKS UNDERSTAND THE BASE BEING
SHOWN THERE IS THE EXISTING
EXPENDITURES WITHOUT ADDITIONAL
NEW REVENUE.
BOTH OF WHICH I THINK WE WILL
HAVE MORE CONVERSATIONS ABOUT.
DIRECTOR PENNUCCI, BEFORE I GO
TO COUNCILMEMBER NELSON,
ANYTHING CARRYING OVER WITH A
HAND?
OKAY.
GREAT.
COUNCILMEMBER NELSON, THANK YOU
FOR YOUR PATIENCE, GO AHEAD
PLEASE.
>> THANK YOU.
AND YOU HIGHLIGHT THE REVENUES
LINE, PLEASE?
THAT IS FINE.
>> SORRY.
I DO NOT HAVE A HIGHLIGHT --
>> THAT IS FINE JUST LIKE IT
IS.
ON APRIL 20th THE REVISED 2022
REVENUES WERE 1 BILLION 671
MILLION AND NOW HERE IT IS
1,708,000,000.
WHICH IS THE REVISED 2022
REVENUE.
WHICH IS NOT A LOT COMPARED
WITH ALL THOSE ZEROES, IT LOOKS
LIKE ABOUT 30 MILLION.
DID SOMETHING HAPPEN IN THE
PAST COUPLE WEEKS?
AND FIRST LET ME PREFACE, NOT
PREFACING BUT I REALLY SHOULD,
I REALLY DO APPRECIATE THE
PLANNING APPROACH.
BUT AS WE CONTINUE CAN WE JUST
EXPECT THAT THE PROJECTED
REVENUES FOR 2022 WILL KEEP
CHANGING AS WE GO FORWARD?
>> I WILL MAKE A QUICK COMMENT
AND THEN ASK FOR TOM TO PROVIDE
CLARIFICATION ON THE NUMBER.
THROUGHOUT 2020 AND 2021 MY
EFFORT HAS BEEN TO MOVE TO
MAKING SURE THAT BOTH THE
EXECUTIVE AND THE LEGISLATIVE
BRANCH GOT REAL TIME
INFORMATION ON ANY REVENUE
PROJECTIONS AT THE SAME MOMENT.
SO WE COLLECTIVELY WORSENING
THE INFORMATION TOGETHER.
JUST LIKE THEY DO IN THE STATE
LEGISLATURE WITH THE FORECASTS
AND PROJECTIONS THERE.
THAT IS STILL MY COMMITMENT.
THE FIRST TIME I SAW REVENUE
PROJECTIONS IN APRIL WAS THE
SAME TIMES THEY WERE
TRANSMITTED AND POSTED ON THE
ECONOMIC REVENUE FORECAST.
THE WEBSITE.
AND THE LATTER INFORMATION CAME
TO US ELECTIVELY FROM THE CBO
OFFICE.
IN TERMS OF WHAT COUNCIL CAN
EXPECT FROM US, YOU CAN EXPECT
QUARTERLY UPDATES THAT WILL BE
RESENTED IN THE SAME MONTH OF
THE FORECAST, PRESENTED BY A
FORECAST OF THE COMMITTEE
AROUND THE REVENUE PROJECTIONS.
I JUST WANT TO MAKE SURE WE ARE
STILL ON THE SAME PAGE AND
PLAN.
FOR HAVING THAT SHARED
INFORMATION.
THEN I WILL TURN TO TOM TO
ADDRESS THE QUESTION OF WHETHER
OR NOT THERE HAS BEEN ANY NEW
INFORMATION PROVIDED AS WE
KNOW THERE WAS A SLIGHT UPDATE
FROM SOME SITES PRESENTED IN
THE LAST COMMITTEE MEETING.
THAT MIGHT BE ACCOUNTING FOR
SOME OF THEM.
>> THANK YOU CHAIR MOSQUEDA.
THANK YOU FOR THE QUESTION
COUNCILMEMBER NELSON.
THAT WAS ACTUALLY NOTED ON THE
TABLE.
AND THIS IS THE ADDITIONAL $37
MILLION OF GRANTS.
THESE GRANTS ARE ASSOCIATED
WITH THE DECISIONS MADE IN
PRIOR YEARS.
SO BASICALLY THEY ARE CARRYING
FORWARD AN EXPENDITURE
ASSUMPTION AND IN SOME CASES
THERE IS ADDITIONAL REVENUE
THAT WE HAVE NOT YET RECEIVED
BUT WE EXPECT TO RECEIVE.
SO THE APRIL 20th FORECAST
UPDATE DID NOT INCLUDE THAT $37
MILLION GRANT.
BUT IT IS MONEY WE EXPECT TO
RECEIVE, SO FOR THE PURPOSES OF
THIS FINANCIAL GRANT WE HAVE
ADDED IT AND WE ARE ACTUALLY
WORKING WITH THE BUDGET OFFICE
AND THE FORECAST OFFICE TO
ENHANCE HOW THE BUDGET MONITOR
OF REVENUES IS DONE SO THIS
TYPE OF THING IS BUILT IN THE
FORECAST SO THERE IS A ONE-ON-
ONE COMPARISON OF THE TWO.
BY KEEP AN EYE ON THE NUMBER
AND DISCREPANCY.
>> ANY ADDITIONAL COMMENTS OR
QUESTIONS ON THIS?
OKAY.
LET'S CONTINUE.
>> GREAT.
AND I BELIEVE WE CAN NOW MOVE TO
, SO THESE ARE JUST SOME
OPTIONS.
SO LOOKING AT THESE PROJECTED
GAPS AND CHANGES IN THE ENDING
FUND BALANCE IN THE FUTURE,
THERE ARE JUST KIND OF A FEW
THOUGHT EXPERIMENTS THAT WE HAD
GONE THROUGH TO HOW A COUNCIL
COULD THINK ABOUT THESE
STRATEGIES TO ADDRESS THESE
DEFICITS OR GAPS.
THERE ARE PROBABLY MORE THAT WE
HAVE NOT THOUGHT OF THAT THE
ONES THAT WE HAVE INCLUDED FOR
TODAY ARE REDUCING THE RIGHT
SIZE GENERAL FUND BUDGET TO
MATCH EXPENDITURES.
AND ALSO ON THIS ONE, THIS IS
MORE OF THE SENSITIVITY
ANALYSIS, THE FORECAST COUNCIL
ENDORSED THE RECOMMENDATION FOR
THE BASELINE FOR THE CURRENT
PROJECTIONS BUT THERE ARE OTHER
SCENARIOS THAT ARE AVAILABLE
BASED ON THE NATIONAL DATA THAT
WE USE FOR MODELING.
THEY ARE BOTH OPTIMISTIC AND
PESSIMISTIC. SO WE HAVE SHOWN
HOW USING THOSE TWO LOOKS AT
WHAT THE FUTURE COULD HOLD AND
HOW THAT IMPACTS THESE NUMBERS.
AND THEN, YOU KNOW, ALSO THERE
IS WAYS RESTRICTIVE FUND
POLICIES COULD BE CHANGED.
SO TO CHANGE HOW MUCH THE
GENERAL FUND IS SENDING TO THE
OTHER FUNDS OR LOOKING THE
OTHER WAY AND HOW THE FUNDS
COULD BE SENT TO THE GENERAL
FUNDS.
WE MODELED THE IMMENSE BOTH
LONGER-TERM AND SHORTER-TERM
APPROACHES, GIVEN THAT IF WE
COULD ACTUALLY LOOK BACK, IT
INTERIM DIRECTOR PENNUCCI, A
KEY POINT OF THIS, AGAIN IF WE
LOOK AT THE OPERATING GAP ROW.
THIS IS KIND OF, I MENTIONED
NOT ONLY THE CHALLENGES BUT THE
OPPORTUNITIES.
IF YOU LOOK AT THE GAP IT IS
$117 MILLION IN 2023.
BUT IT ACTUALLY DECREASES TO
$69 MILLION IN 2025 AND $37
MILLION IN 2026.
AND ONE THOUGHT I HAVE HAD
ABOUT THAT IS THERE ARE SOME
REVENUES THAT HAVE RECOVERED TO
THE PRETEST PRE-PANDEMIC,
HOWEVER OTHER CATEGORIES ARE
LAGGING BEHIND STILL.
I THINK THAT THIS TREND SHOWS
THAT AS THE OTHER CATEGORIES
RECOVER MORE SLOWLY, THEY START
TO IMPACT THE GENERAL FUND
FINANCIAL PLAN AND THE GAP IN
THE FUTURE IS SMALLER THAN THE
GAP WE ARE EXPERIENCING IN THE
NEAR-TERM.
THIS UNDERLIES THE CONCEPT THAT
THERE MIGHT BE SOME SHORTER-
TERM STRATEGIES THAT CAN BRIDGE
THE GAP WITH A MORE, SMALLER
STRUCTURAL CHANGE AND SOME
TARGETED ONE-TIME APPROACHES.
>> GREAT.
CLARIFICATION EDITION.
PLEASE GO AHEAD DIRECTOR
DINGLEY.
>> THANK YOU CHAIR MOSQUEDA.
I ALSO WANT TO ADD IN THAT WHAT
WE DO NOT SEE , COUNCILMEMBER
HERBOLD, AT THE APRIL 20th
MEETING RAISED A GOOD QUESTION
ABOUT HOW WE SEE INFLATION
SHOWING UP IN THESE EXPENDITURES
? WHERE ARE THE EXPENDITURES
FLOWING IN?
ONE AREA AS WELL WE HAVE NOT
TALKED ABOUT IS OUR LABELER
LABOR COSTS.
AS YOU KNOW WE HAVE MULTIPLE
CONTRACTS OPEN THIS YEAR FOR
NEGOTIATION AND THOSE ARE, THE
OUTCOME IS UNCERTAIN.
AND SO AS IT IS SORT OF A ZERO-
SUM GAME AT THE END OF THE DAY.
SO THAT ADDED AND WITH
INFLATION ANOTHER THINGS COMING
IN.
I ALSO WANTED TO HIGHLIGHT THAT
WHAT TOM HAS SHOWN YOU SO FAR
IS, THIS IS WHAT I CAME TO ALL
OF YOU EARLY THIS YEAR TO START
THIS CONVERSATION.
AND SO AGAIN I JUST WANT TO SAY
THANK YOU FOR BEING ENGAGED AND
EXCITED FOR HAVING THE SCOMBER.
FOR HAVING THIS CONVERSATION.
THIS IS WARMING MY HEART.
BECAUSE THIS IS THE PROBLEM TO
SOLVE, IT IS HIGHLIGHTED AS TOM
JUST HIGHLIGHTED.
WE ARE BOWIE, AS FAR AS THE
HIRING FREEZE IN THE DEPARTMENT
RAMPING BACK UP BUT THIS IS THE
REAL PROBLEM TO SOLVE BEFORE
US.
>> VICE CHAIR HERBOLD, PLEASE
GO AHEAD.
>> THANK YOU SO MUCH.
AS IT RELATES TO THE SLIDE
THAT IDENTIFIES LONG-TERM AND
NEAR-TERM SUSTAINABILITY
STRATEGIES, THE CONCEPT OF
TEMPORARY CHANGES TO
RESTRICTIVE FUND POLICIES AND
RESTRICTIVE FUND BALANCE, DO WE
HAVE A CATALOG OF ALL THE
EXISTING RESTRICT DIV FUND
POLICIES THAT WE COULD TAKE A
LOOK AT AND SEE WHETHER OR NOT
THERE ARE SOME WE WANT TO
CONSIDER TEMPORARY CHANGE, AND
OTHERS THAT WE DON'T?
>> I WILL TAKE THAT, TOM.
THANK YOU COUNCILMEMBER
HERBOLD.
I DO NOT HAVE READILY A CATALOG
BUT IF WE COULD LOOK AT ALL OF
THE FUNDS THAT WE OFTEN REFER
TO AS GENERAL FUND ADJACENT,
WHICH IS POLICIES THAT THE
COUNCIL HAS THE AUTHORITY TO
MODIFY AND PROVIDE THAT TO THE
COMMITTEE.
BUT IT INCLUDES THINGS LIKE THE
POINT TOM BROUGHT UP IN THE
TERMS THAT THERE IS A POLICY
AROUND TRANSFERRING FUNDS TO
THE REVENUE STABILIZATION FUND.
THAT IS ONE EXAMPLE.
I ENCOURAGE YOU ALL TO
REPLENISH THAT.
CHALLENGES THAT THE CITY MAY
FACE DOWN THE ROAD, THAT IS THE
TAPE TYPE OF POLICY THAT WE
WOULD LOOK AT INCLUDING AS WELL
AS THOSE TYPES OF POLICIES.
WE ARE HAPPY TO PUT THAT
TOGETHER FOR YOUR REVIEW.
>> GREAT, THAT IS APPRECIATED.
PLEASE GO AHEAD COUNCILMEMBER
PEDERSEN.
>> THANK YOU CHAIR MOSQUEDA.
AND REALLY HAPPY THAT CHAIR
MOSQUEDA, YOU HAVE ASKED FOR
THIS LEVEL OF DETAIL TO BE
PRESENTED SO EARLY IN THE
BUDGETING PROCESS.
AND YOU KNOW, ANYTIME WE CAN
LIFT UP IN APPENDIX AND DAYLIGHT
IT LIKE THIS, I LOVE IT, I HAVE
GOT MY SPREADSHEETS, I LOVE
THEM.
READY TO GO HERE.
I JUST WANTED TO, AND I
APPRECIATE BUDGET DIRECTOR
DINGLEY MENTIONING THE LABOR
COST ISSUE.
A LOT OF US ARE ON THE LABOR
POLICY, SO HAVING THESE NUMBERS
NOW IS REAL VITAL INFORMATION
FOR US TO HAVE, AS FAR AS WHERE
THE GAPS ARE.
I JUST WANTED TO SAY, YOU KNOW,
WE WORKED REALLY HARD ON THE
2022 BUDGET THAT WE ARE IN
RIGHT NOW.
AND SO I DO NOT FAVOR CUTTING
THINGS THAT WE ALREADY PROMISED
TO OUR CONSTITUENTS FOR THIS
CALENDAR YEAR.
I DO SUPPORT REPLENISHING OUR
EMERGENCY FUND AND REVENUE
STABILIZATION FUND AS BASED ON
OUR CURRENT POLICY.
AND IT LOOKS LIKE THAT WILL BE
POSSIBLE TO DO.
I RECOGNIZE THERE IS STILL A
GAP OF THAT 35 MILLION DOLLARS
FOR 2023, AND THEN GAPS IN 2024
AND 2025.
SO I WOULD REALLY APPRECIATE
THE STRATEGIES BEING PUT
FORWARD TO CONSIDER OPTIONS.
AND I WILL MENTION AN OPTION
THAT MAY NOT BE POPULAR WITH
EVERYBODY BUT I WANTED TO GET
MORE INFORMATION ABOUT THAT.
WHEN I LOOK AT THE ADOPTED 2022
BUDGET DOCUMENT THAT WAS PUT
ONLINE RECENTLY, THERE IS IN THE
APPENDIX, ON PAGE 783, IT DOES
TALK ABOUT THE PAYROLL TAX,
JUMPSTART TAX THAT
COUNCILMEMBER MOSQUEDA AND
OTHERS WERE CHAMPIONS OF THAT
TAX AND THANKFULLY THAT IS
HELPING US , HELPED US TO DEAL
WITH A GAP LAST YEAR.
IT IS COMING IN HIGHER THAN
EXPECTED NUMBERS.
AND IN THAT APPENDIX, PAGE 73.
IT SAYS TO START TAX PROJECTED
AT 250 MILLION, NOW PROJECTED
ABOUT 296 MILLION.
SO I JUST WANTED TO SEE WHAT IT
MIGHT LOOK LIKE WITH DIFFERENT
STRATEGIES.
WE OBVIOUSLY ALL APPROVED THE
INVESTMENT PLAN FOR JUMPSTART
AS THINGS THAT WE REALLY NEED,
THINGS THAT WE SUPPORT.
AND I AM JUST WONDERING HOWEVER
IF THAT COULD BE ON THE TABLE AS
AN OPTION.
SO ASKING CENTRAL STAFF IF THEY
COULD SORT OF LOOK INTO WHAT
WOULD DIFFERENT SNARES LOOK
LIKE SO YOU ARE STILL INVESTING
THE VAST MAJORITY OF THE
JUMPSTART FUNDS, ON WHAT WAS
THE PERCENTAGES THAT WERE
AGREED TO.
BUT ALSO, INVESTING SOME OF THE
GREATER THAN ANTICIPATED
REVENUE FROM THAT SOURCE TO
HELP DEAL WITH THE GENERAL FUND
GAP.
OF COURSE THAT IS ALL SUBJECT
TO WHETHER WE ARE ABLE TO
MANAGE OUR COSTS ELSEWHERE OR
WHETHER THAT IS LABOR
CONTRACTS, WHICH I BELIEVE
MAKES UP BETWEEN 60% AND 70% OF
GENERAL FUNDS, PERSONAL COSTS,
I BELIEVE.
BUT ANYWAY JUST ASKING, THEY
HAVE ALREADY GIVEN US SO MUCH
INFORMATION AND IT WOULD BE
HELPFUL TO LOOK AT WHAT
OPTIONS MIGHT BE AVAILABLE
LOOKING AT THE JUMPSTART
REVENUE.
AGAIN JUST PORTIONS OF IT ON A
TEMPORARY BASIS.
I KNOW THAT THERE MAY NOT BE
CONSENSUS FOR THAT, BUT JUST
GETTING THAT INFORMATION GOING
WOULD BE HELPFUL TO ME, AT
LEAST.
>> COUNCILMEMBER PEDERSEN, YOU
ARE RIGHT, THAT IS NOT AN EASY
TOPIC TO BROACH, ONE THAT I
FEEL A LOT OF EXCITEMENT THAT
WE HAD UNANIMOUS SUPPORT FOR
THE SPEND PLAN.
UMANA MS. PASSAGE.
I AM GLAD YOU ASKED THE
QUESTION TO CENTRAL STAFF AND
COUNCILMEMBER'S ,
COUNCILMEMBER HERBOLD'S, THE
GENERAL ADJACENT FUND TOO.
I AM SURE IT IS PART OF THE
ANALYSIS.
AND ALSO APPRECIATE THAT THERE
IS A BROAD COALITION WHO HAD
WORKED REALLY HARD WITH ALL OF
US ON THOSE DETAILS OF THIS
AMENDMENT.
SO MORE CONVERSATION TO COME
ABOUT THAT.
I APPRECIATE YOU RAISING THAT.
AND I DO HAVE ONE QUESTION
COUNCILMEMBER HERBOLD THAT
MAYBE I WILL THROW OUT AND WE
CAN COME TO ADD YOUR COMMENT AS
WELL.
TOM, I AM WONDERING IF YOU
COULD SPEND A LITTLE BIT MORE
TIME AS WELL TALKING ABOUT THE
RIGHT SIZE AND CONCEPT HERE.
OBVIOUSLY THE WORD CHOICE IS
IMPORTANT, WE WANT TO MAKE SURE
THAT WE ARE AVOIDING
UNNECESSARY BUDGETING, GIVEN
THE DATA AND EXPENSE AT THE
BEGINNING OF THIS MEETING.
WHICH SHOWED THAT JURISDICTION
TO INVESTED IN CORE GOVERNMENT
SERVICES SHOW FASTER REBOUND IN
ECONOMIES THAT BENEFITED BOTH
DRIVING AND PUBLIC SECTOR.
WONDERING IF YOU TALK ABOUT HOW
YOU SAW A 3.6% UNDERUSE OF
SPENDS.
AND HOW THE RIGHTSIZING COULD
POTENTIALLY BE CALCULATED.
>> HAPPY TO DO SO CHAIR
MOSQUEDA.
FIRST I WILL CONFIRM
COUNCILMEMBER PEDERSEN HAD
THE ESTIMATE OF THE PERSONAL
COSTS OF THE PLAN AND I CONFIRM
IT IS 59% PROJECTION FOR
PERSONNEL RELATED COSTS.
AND THEN TO CHAIR MOSQUEDA'S
QUESTION, PROBABLY USEFUL TO
LOOK AT THE NEXT SLIDE BECAUSE
WE WILL ACTUALLY SEE THE
NUMBERS.
AND ON PAGE 8 OF THE MEMO THERE
IS THE CALCULATION THAT THE
CHAIR REFERENCED.
AND THIS LOOKS AT 2021 ACTUAL
RESULTS, WHICH I DISCUSSED IN
THE EARLIER SLIDE, WHICH
RESULTED IN REVENUES ABOVE
BUDGET AND SIGNIFICANT AMOUNT
OF EXPENDITURES BELOW BUDGET.
YOU CAN SEE THE CALCULATION ON
PAGE 8. BUT THE PUNCHLINE IS
EVEN AFTER THE COUNTY PUTS
FORWARD THE GENERAL FUND
EXPENDITURE, THE ACTUALS IN
2021 WERE 3.5% LOWER THAN WHAT
WAS BUDGETED, ABOUT $50 MILLION
IN THE YEAR.
AND SO JUST BY WAY OF A THOUGHT
EXPERIMENT, AGAIN THIS IS KIND
OF TAKING A BROAD METRIC AND
APPLYING IT TO THE PLAN, THE
UNDERLYING PROCESS BY WHICH
THESE NUMBERS WOULD RESULT,
WOULD REQUIRE A TARGETED
APPROACH LOOKING AT VACANCIES
IN THE VARIOUS WAYS THAT THEY
WERE GENERATED.
IF WE RESOLVED -- IN THE PLAN,
THAT WOULD CUT OUT -- MILLION A
YEAR AND REVISE THE GAP TO $67
MILLION IN 2023 AND $56 MILLION
IN 2024, WHICH WOULD THEN
BALANCE THE UNRESERVED BALANCE
FOR 2023, SO THERE WOULD BE A
NET $14 MILLION REMAINING.
HOWEVER, THE 2024 PROJECTION
WOULD STILL BE $42 MILLION
NEGATIVE.
FOR THE ENDING BALANCE.
AGAIN THIS IS JUST A THOUGHT
EXPERIMENT, JUST ONE APPROACH,
ONE PIECE OF AN APPROACH THAT
CAN BE TAKEN.
AND SHOWING HOW A 3% REDUCTION
CAN LOOK.
>> ADDITIONAL CLARIFICATION
DIRECTOR DINGLEY.
>> YES, THANK YOU.
ONE THING I WANT TO POINT OUT
IS THAT TOM HAS DONE A
HERCULEAN JOB OF TAKING
INFORMATION FROM OUR OFFICE AND
LARGELY RE-CREATING THINGS
THAT WE HAVE SYSTEMS THAT FEED
INTO THIS, MANY LINK'S,
SPREADSHEETS, HE HAD TO DO THIS
BASED ON SEVERAL INCOMING
POINTS.
JOB WELL DONE, TOM.
AS TOM NOTED THE BASE FINANCIAL
PLAN HE IS SHARING INFLATES
I.T., FLEETS, AND FACILITIES
COSTS, NOT NECESSARILY ALL
COSTS.
SO THE NUMBER HERE ON THE
EXPENDITURES IS LIKELY BASED ON
WHAT I HAVE BEEN SEEING OVER
THE LAST MONTH AND REVIEWING
DEPARTMENT PRELIMINARY FOR THE
BUDGET.
IS LIKELY UNDERCOUNTING BY
ABOUT HALF ON THE EXPENDITURE
SIDE.
SO INSTEAD OF A 3%, WHAT WE
HAVE BEEN SEEING IS BELIEVING
TO CLOSE THE GAP OF AROUND 6%,
TO ACCOUNT FOR INCREASES IN
COSTS OVERALL.
LIKE THAT IS THE UNEXPECTED
HITS, LIKE THE INCREASE IN THE
SUPPLY CHAIN IMPACT.
YOU KNOW, SORRY AGAIN DIRECTOR
LOADER IF YOU ARE LISTENING.
BUT IN TIME THE I.T.
PROJECT, THOSE THINGS THAT WERE
UNEXPECTED AND COMING IN AT
MUCH HIGHER THAN ANTICIPATED.
SO THAT IS ONE THING I WANT TO
MENTION HERE.
THE OTHER THING I WANT TO
MENTION IS IN THINKING ABOUT IF
WE THINK ABOUT UNDER SPENT IN
THE BUDGET, HOLDING VACANCIES
AS A WAY OF GENERATING SAVINGS
IS AN EXCELLENT ONE TIME TO ALL
WHERE DEPARTMENTS CAN MAKE
AGREEMENTS TO HOLD OR DEFER
CERTAIN WORK FOR A YEAR OR
MAYBE TWO YEARS OR MAYBE THEY
SHIFT THE WORK ONTO OTHER STAFF.
BUT IT IS NOT AN ONGOING
BALANCING POOL AND I THINK WHAT
IS REALLY HARD FOR ALL OF US IS
THAT AT ONE POINT EVERY
PHYSICIAN IN THE CITY WAS
VITAL, SO VITAL THAT LIKELY THE
EXECUTIVE PROPOSED IT AND
COUNCIL APPROVED IT, OTHERWISE
IT WOULD NOT EXIST.
AND SO WHAT WE HAVE NOT BEEN
ABLE TO DO, A MUCH HARDER
CONVERSATION IS TALKING ABOUT
NOT DOING THAT BODY OF WORK
LONG-TERM.
AND THAT IS WHAT IS GOING TO
GET YOU ON THAT OPERATING MIND
TO ONGOING SAVINGS.
THAT IS WHERE I JUST WANT TO
CAUTION OVERRELIANCE ON THOSE
ONE-TIME TOOLS.
SO, YEAH, IF THAT DID NOT MAKE
SENSE THEN FEEL FREE TO ASK ME
A CLARIFYING QUESTION.
BUT I WANT TO TRY TO CONVEY
THAT IT IS A GOOD ONE-TIME TOOL
BUT NOT NECESSARILY A GREAT
ONGOING TOOL WITHOUT
ACCOMPANYING CHANGES IN
EXPECTATIONS OF DEPARTMENT
PERFORMANCE, PROJECTS, AND
SERVICES.
>> THANK YOU.
I WILL TURN TO COUNCILMEMBER
HERBOLD IN JUST A SECOND.
I WANT TO MAKE SURE I
UNDERSTOOD AS WELL AN IMPORTANT
POINT OF I THINK THE ANALYSIS
MMO IN FRONT OF US.
WHICH IS, UNDER SPEND FOR 2022
MAY HELP US FOR 2023 BUDGET.
BUT IT DOES NOT HELP US FOR THE
OUTGOING YEARS.
AND I THINK TO THAT POINT, WHAT
WE ARE LOOKING AT WHEN WE TALK
ABOUT RIGHTSIZING IS NOT HAVING
A BUDGET THAT EVERY YEAR
OVERINVEST INTO POSITIONS WHERE
YOU SEAT 100+ MILLION DOLLARS
CARRYING OVER EVERY YEAR.
I DO NOT THINK THAT IS SOLID
BUDGETING AS WELL TO HAVE
BUDGETED CONSTANTLY AT A
ELEVATED RATE, WHERE YOU SEE
THE AMOUNT BEING TRANSFERRED
INTO THE SECOND OR TRANSFERRED
BACK TO THE GENERAL FUND
BECAUSE OF CHRONIC UNDER
SPENDING.
IF THERE IS A RIGHT SIZING OF
THAT INITIAL INVESTMENT IN A
BUDGET, HOPEFULLY BY ANNUAL
BUDGET, NOT JUST 12 YEAR
CALENDAR BUDGET.
BUT WHEN THERE IS THE
RIGHTSIZING OF A BUDGET THEN WE
KNOW WHAT THE ACTUAL UNIVERSAL
DOLLARS IS FOR THE PROGRAMS AND
SERVICES.
AND I SAW TOM COME OFF OF BUTTE
AS WELL AND I SEE YOUR HAND
DIRECTOR DINGLEY BUT WANT TO
MAKE SURE THAT BOTH ARE TRUE.
RIGHT?
WE DO NOT WANT TO HAVE CHRONIC
UNDER SPAN UNDER SPEND.
TOM?
>> THANK YOU CHAIR MOSQUEDA.
THIS IS THE TECHNICAL
PERSPECTIVE OF HAVING THE PLANS
BE USEFUL.
AND I APPRECIATE DIRECTOR
DINGLEY'S COMMENT ABOUT THE
WORK.
AND I ECHO AT BACK TO YOUR
STAFF AND ALL THAT HELP.
WE TRY TO USE OR HAVE USED THE
SAME MODELING APPROACH THAT CBO
USES.
WE HAVE PLAYED THE SAME THINGS
THAT CBO'S PLAN IS IN PLAY.
WE NEED TO REGROUP AND PERHAPS
HAVE A CRITICAL CONVERSATION
ABOUT USING THE FEEDBACK
PROCESS.
HOW TO IMPROVE THE FUTURE
PROJECTIONS AND PERHAPS OTHER
CATEGORIES, THE CURRENT MODELS
USED BY THE EXECUTIVE AND NOW
THAT WE HAVE DISCUSSED TODAY,
INCLUDING THE MORE THOROUGH
INFLATIONARY PROJECTIONS, AGAIN
IF THE PLAN IS USEFUL.
>> THAT MAKE SENSE.
DIRECTOR DINGLEY?
>> THANK YOU.
I APPRECIATE THAT TOM, AS WELL.
WE ARE STILL IN OUR
DELIBERATIVE PROCESS OF
FIGURING OUT HOW THIS IS ALL
GOING TO LOOK.
SO IT IS IN NO WAY WOULD I
EXPECT WHAT TOM PUTS IN FRONT
OF YOU TODAY TO CAPTURE EVERY
SINGLE NUANCE.
I THINK WHAT YOU ARE HEARING ME
SIGNALED TO YOU IS THAT I AM
ALREADY SEEING PRESSURES,
INCREASED PRESSURES ON THOSE
COSTS.
I WANT YOU TO HAVE THAT IN THE
BACK OF YOUR MINDS, IT IS NOT
FINDING $30 MILLION AND WE ARE
DONE, WALK AWAY KIND OF
SITUATION.
I DO NOT WANT YOU TO BE CAUGHT
SURPRISED WHEN I COME BACK AND
ACTUALLY IT IS A BIT MORE.
ONE OTHER POINT I WANT TO MAKE,
CHAIR, YOU RAISED A GREAT
POINT.
I MEANT TO BRING IT UP EARLIER,
BUT IN WORKING WITH GLENN LEE'S
OFFICE, DIRECTOR LEE'S OFFICE,
WE ARE DOING REALLY EXCITING
WORK ABOUT STARTING UP ENHANCED
MONITORING THROUGHOUT THE CITY.
SO I SHARE THE FRUSTRATION OF
HAVING EMPTY BUDGET SITTING
AROUND AND NOT GOING OUT THERE
TO BE USED FOR THE HIGHEST AND
BEST PRIORITY.
AND BEST LAID PLANS, THERE IS A
LOT OF CIRCUMSTANCE I CAN
HAPPEN IN A DEPARTMENT, CHANGE
IN ADMINISTRATION HAS A BIG
IMPACT AND CHANGING LEADERSHIP.
THERE IS A LOT OF PERSONNEL
CHANGES THAT CAN COME WITH THAT
AS WELL.
BUT NONETHELESS WE ARE
ENHANCING FUNDING CITY WIDE, SO
WE WILL BE HAVING ACCOUNTING
MEETINGS WITH ANALYSTS,
DIRECTORS, DEPARTMENT FINANCE
DIRECTORS, TO HAVE CRITICAL
CONVERSATIONS ABOUT, HEY, WE
ARE SEEING THIS TREND.
WHAT IS GOING ON HERE?
AND WE HAVE HAD THOSE
CONVERSATIONS IN THE PAST BUT
HAVE NOT HAD THE TOOLS TO BACK
THEM UP AND NOW WE HAVE THE
TECHNICAL CAPABILITY WITH OUR
NEW FINANCIAL MANAGEMENT SYSTEM
AND THE GREAT PARTNERSHIP WITH
DIRECTOR LEE'S OFFICE.
THAT IS SOMETHING I AM EXCITED
ABOUT AND IT WILL NOT BE A ONE
YEAR FIX, IT WILL BE SOMETHING
THAT WILL TAKE US A WHILE TO
GET RIGHT.
BUT I WANTED YOU ALL TO KNOW
THAT I AM HOT ON THE TRAIL OF
GETTING THAT RIGHT SIZED.
>> THANK YOU AND THANK YOU FOR
YOUR PATIENCE, AND
COUNCILMEMBER HERBOLD GO AHEAD.
>> MY QUESTION WAS ORIGINALLY
AROUND PAYROLL TAX.
THE SURPLUS ABOVE PROJECTED,
BUT I WILL NOT GO BACK TO THAT.
[ LAUGHTER ] SINCE THE TIME HAS
COME AND GONE FOR THAT TOPIC
AND I CAN ASK MY QUESTIONS OFF-
LINE.
I DO WANT TO FLAG JUST THAT I
AM STRUGGLING WITH MADAM CHAIR,
YOUR DISTINCTION OF A CUT
BUDGET AND NOT WANTING TO DO A,
TO DO AUSTERITY BUDGETING FROM
THIS EXERCISE.
WHICH IT HAS THE EXPENDITURE
REDUCTION.
IT SOUNDS LIKE WE ARE TRYING TO
MAKE SOME SORT OF A DISTINCTION
HERE THAT AN EXPENDITURE
REDUCTION IS SOMEHOW DIFFERENT
THAN A CUT.
AND I THINK WHAT I HEAR YOU
SAYING IS THAT YOU ARE TRYING,
THE EXPENDITURE REDUCTION IS
ATTEMPTING TO MAYBE NOT MODEL
BUT SORT OF SPIT ALL WHAT THE
UNDER SPEND IS FOR THE
DEPARTMENTS.
AND I HEAR DIRECTOR DINGLEY
SAYING, THAT MAY NOT BE A
SOLUTION THAT CARRIES FORWARD
SORT OF THE SUSTAINABILITY THAT
WE ARE SEEKING FOR FUTURE
BUDGETS IN THIS ONGOING
PLANNING EXERCISE THAT
HOPEFULLY WILL BECOME ROUTINE.
BUT I GUESS IN THE SPIRIT OF
SPIT BALLING, I GUESS MAYBE
THIS IS THE SAME THING YOU ARE
STRIVING TO DO, MADAM CHAIR, I
REMEMBER AS IT RELATES TO, AND
COUNCILMEMBER PEDERSEN WILL
REMEMBER THIS BECAUSE I HAVE
TALKED ABOUT IT A LOT.
AS IT RELATES TO OUR EFFORTS
TO REDUCE ALL PUBLIC UTILITIES
RATE INCREASES, WE WENT THROUGH
AN EXERCISE OF THEIR CAPITAL
PROJECTS.
AND WE IDENTIFIED AN ANNUAL
LIKELY COMPLETION DATE, LIKELY
COMPLETION RATE FOR THE
PROJECTS.
AGAIN THE LARGE BALANCES FOR
CAPITAL PROJECTS WERE
TRANSFERRING OVER YEAR AFTER
YEAR AFTER YEAR, AND THAT WAS
THEN BECOMING THE RATIONALE FOR
A MUCH LARGER RATE INCREASE.
AND WHEN YOU LOOKED AT REALLY
WHAT THEY WERE SPENDING ON
THOSE PROJECTS YOU COULD HAVE A
SMALLER RATE INCREASE TO
SUSTAIN WHAT WAS ACTUALLY BEING
SPENT ON THOSE CAPITAL
PROJECTS.
SO ON THE OPERATING SIDE IT
SOUNDS TO ME LIKE A WHAT WE
SHOULD BE LOOKING AT IS WHETHER
OR NOT WE CAN ASSUME SOME SORT
OF -- YOU KNOW -- UNDER SPEND
RATE, FOR THE DEPARTMENTS BASED
ON PAST PRACTICES OR PAST REAL,
REAL TIME OR PAST ANALYSIS OF
PRIOR YEARS.
THAT IS BASICALLY HOW THEY SET
THE SP.
THEY LOOK AT THE PRIOR YEARS
AND SAY, HOW MANY OF THE
DOLLARS ARE WE ACTUALLY
DELIVERING YEAR AFTER YEAR
AFTER YEAR?
AND THEY SAT THE COMPLETION RATE
BASED ON THE ACTUAL BEST
PRACTICES.
I AM WONDERING IF WE MOVE AT
PAST YEARS OPERATING BUDGETS,
UNDER SPENDS IN TRANSFERRING
OVER THE FUTURE YEARS, WHETHER
OR NOT WE COULD COME TO SIMILAR
CONCLUSIONS UPON WHICH TO BASE
FUTURE BUDGETING.
>> THANK YOU VERY MUCH VICE
CHAIR, YES, I THINK THAT IS
EXACTLY MY DESIRE AS WELL.
I THINK, AND I WILL TURN TO
DIRECTOR PENNUCCI AND DINGLEY
IN JUST A SECOND, BUT AS WE ARE
SEEING A CERTAIN PERCENTAGE
ACROSS DEPARTMENTS BEING
CARRIED OVER INTO THE NEXT
YEAR, IS THERE A ROUTINE UNDER
SPEND ANALYSIS OR A ROUTINE
UNDER SPEND AND ANALYSIS WE CAN
EXTRAPOLATE TO SAY, PERHAPS
THERE IS A WAY TO LOOK AT
HIGHER THAN NEEDED IN EACH YEAR
AFTER YEAR.
I SEE THE CAUTION WHERE IT MAY
SOLVE A NEAR-TERM ISSUE FOR THE
NEXT BUDGETING CYCLE BUT MAYBE
IF WE LOOK AT DOING THAT YEAR-
OVER-YEAR, THE DOLLAR AMOUNTS
FROM PAST ANALYSES MAY NOT HELP
US AS MUCH GIVEN THE UNKNOWNS
THAT WERE DESCRIBED.
BUT THAT IS WHAT I LIKE TO DO.
AND TRY TO APPLY SOME SORT OF
FORECAST TO WHAT WE CAN
POTENTIALLY PARTICIPATE.
SO I WILL ADD TO MY LIST OF
TAKEAWAYS HERE, IN ADDITION TO
THE CATALOG OF GENERAL FUND
ADJACENT REVENUE THAT WE CAN
LOOK AT, LOOKING AT A YEAR OVER
YEAR ANALYSIS, I THINK UNDER
SPEND FOR THE PAST PRACTICES TO
TRY TO EXTRAPOLATE SOME WAY TO
APPLY THAT IF WE WERE TO GO TO
A RIGHTSIZING OPTION AS WELL IN
THE FUTURE.
STILL RECOGNIZING THE CAVEAT OF
THE ADDITIONAL INCREASE OF COST
OVERALL.
DIRECTOR PENNUCCI, DIRECTOR
DINGLEY, THEN WE WILL SEE IF
THERE ARE ADDITIONAL QUESTIONS.
>> THANK YOU.
YOU MORE OR LESS MADE MY POINT
WHICH WAS GOING TO BE THAT WE
ARE INTERESTED IN TALKING WITH
CBO AND FORECAST OFFICE ABOUT
DOING A LONGER LOOK BACK AT THE
HISTORIC VARIANTS IN THE
PROJECTIONS.
BUT ALSO WE WILL JUST NOTE, AS
WHAT DIRECTOR DINGLEY
HIGHLIGHTED, THAT IT WILL HELP
US ONE TIME, THE MORE EFFICIENT
THAT WE ARE CLOSE AT ACTUALS,
THE BUDGET ADOPTED, THE LESS
SORT OF OPPORTUNITY THERE IS.
ESPECIALLY WHEN CENTRAL STAFF IS
LOOKING FOR WAYS FOR ONE-TIME
STRATEGY TO SUPPORT COUNCIL
PROPOSALS DURING THE BUDGET
PROPOSAL.
IT SQUEEZES IT OUT SO THE
BETTER THAT WE GET A PROJECTING
ANNUAL EXPENDITURES, THE THAN
THAT WILL JUST BE A ONE-TIME
OPTION.
WHICH IS A WORTHY EXERCISE AND
I AM LOOKING FORWARD TO
PARTNERING MORE WITH JULIE AS
THEY MOVE INTO THEIR DEEPER
WORK INTO ENHANCING THEIR
OVERSIGHT OF THE ACTUALS.
>> DR. DINGLEY.
>> THANK YOU SO MUCH.
I WANT YOU TO KNOW THAT WE DO
EVERY YEAR, BUT NOT IN EVERY
DEPARTMENT.
SOMETIMES IT IS AS MUCH AS 3%.
SOMETIMES IT IS AS HIGH AS 5%,
DEPENDING ON WHAT THE
DEPARTMENT HAPPENS TO KNOW
ABOUT OPERATIONS IN ANY GIVEN
YEAR.
A LOT OF TIMES WE ARE ALREADY
TAKING THAT IN.
OFFICIALLY WE HAVE GENERAL OVER
FUND TARGETS, LOOKING AT PAST
PRACTICE.
I DO NOT BELIEVE THAT WE HAVE
ONE IN THE 2022 ADOPTIVE BUDGET
BUT NO WE HAVE DONE IT IN THE
PAST.
ACTUALLY IT IS A TOOL IN OUR
DISPOSAL.
I WANTED TO HIGHLIGHT THAT THE
SLIDE TOM PREVIOUSLY HAD UP OF
ALL THE DIFFERENT OPTIONS,
APOLOGIES TOM, IF WE ARE STILL
ON OPTION ONE HERE, OF THINGS
TO EXPLORE.
BUT THE ANSWER LIES IN A
COMBINATION OF THESE.
OF THESE THINGS.
RIGHT?
NO ONE OF THESE ITEMS IS SORT
OF THE SALVATION.
OVERALL.
AND THERE IS NO PATH, THERE ARE
TOO MANY DOUBLE NEGATIVES, IN
ORDER TO AVOID THE AUSTERITY
BUDGET WE HAVE TO EMPLOY ALL
THE TOOLS.
AND THERE IS NO PATH TO
BALANCING THAT RELIES ON ONLY
ONE TOOL.
AND SO I JUST WANT TO -- THAT
FOR YOU IS ALL.
>> THAT MAY BE A GOOD SEGUE.
TOM, I DO NOT SEE A FOURTH
BULLET ON THE SLIDE AND I THINK
ANOTHER ONE IS REVENUE.
WE TALKED A LOT ABOUT LOOKING
AT EXISTING REVENUE STREAMS, BUT
I THINK THAT THERE IS STILL THE
SITUATION, EVEN WITH THE
PASSAGE OF JUMPSTART, THAT WE
ARE A VERY REGRESSIVE TAX DATE
AND LOOKING AT THE PROGRESSIVE
OPTIONS IS A LONGER TURN
SOLUTION WILL BE IMPORTANT.
I REALLY APPRECIATE THAT
COUNCILMEMBER PEDERSEN, IN
ASKING FOR THE CATALOG OF
OPTIONS ALSO NOTED ANY USE OF
REVENUE IN GENERAL FUND
ADJACENT REVENUE, WOULD NEED TO
BE SHORT-TERM.
IN NATURE.
AND POTENTIAL TEMPORARY
SOLUTIONS.
I LOOK FORWARD TO FILLING OUT
OUR PRESENTATION HERE A LITTLE
BIT MORE.
I KNOW WE ARE ALREADY OVER
TIME.
AND I SEE TWO HANDS.
SO, I WANT TO MAKE SURE THAT WE
GET A CHANCE TO GO THROUGH THE
LAST SLIDES HERE.
DIRECTOR PENNUCCI DID YOU HAVE
ADDITIONAL --
>> YES.
IT VERY QUICKLY, I JUST WANTED
TO NOTE THAT NOT EXPLICITLY
STATED IS NEW FORMS OF REVENUE.
YOU COULD LOOK AT ANY OF THE
OPTIONS AND ASSUME THAT IF
THERE WAS A NEW SOURCE OF
REVENUE THAT IN THE AMOUNT
SHOWN, LIKE INSTEAD OF 3%
EXPENDITURE REDUCTION, IF IT
WAS 3%, YOU KNOW, THAT AMOUNT
OF MONEY WAS INCREASING THE
REVENUE, IT WOULD ALSO HELP
BALANCE.
SO I THINK YOU SHOULD BE
THINKING OF THESE OPTIONS AS,
YOU KNOW, IMPROVEMENT, LIKE THE
OPTIMISTIC FORECAST WOULD SHOW
IF THERE WAS THE IMPROVEMENT IN
THE ECONOMIC CONDITION OR IF WE
HAD A NEW LINE OF SOURCE FUNDS
TO SUPPORT THE GENERAL FUND TO
INCREASE REVENUES ACCORDINGLY.
TO YOUR POINT COUNCILMEMBER
MOSQUEDA, YOU CAN ALSO LOOK AT
ANY OF THESE POINTS OF BEING
WHAT WOULD BE ASSUMED IF THERE
WAS ADDITIONAL REVENUES, EXCEPT
FOR THE PESSIMISTIC FORECAST.
>> THANK YOU.
AND I WANT TO THANK YOU --
TREND SIX, THE -- HERBOLD, AND
THE REVENUE TASK FORCE.
AND THE REVENUE TASK FORCE OF
COURSE CAN LOOK AT THE WAYS
THAT WE OFFSET SOME OF THE
REVENUE STREAMS THAT MIGHT BE
HARDER, IMPACTING COMMUNITIES OF
COLOR, OR SMALLER BUSINESSES
HARDER.
MAYBE THERE IS A WAY TO OFFSET
SOME OF THOSE REVENUE STREAMS
IF WE LOOK AT MORE PROGRESSIVE
OPTIONS AS WELL.
HEART OF THE TASK FORCE IS
LOOKING AT VARIOUS STRATEGIES.
THANK YOU TO DR. DINGLEY,
SENIOR DEPUTY MAYOR HAROLD FOR
BRINGING THEIR WORK INTO THE
OPERATION.
COUNCILMEMBER NELSON?
>> THANK YOU.
IF WE ARE LOOKING FOR POLICY
DIRECTION HERE, I DO NOT KNOW.
I WAS NOT HERE WHEN THE PANEL
OF EXPERTS TALKED ABOUT THE
BENEFITS OF PROGRESSIVE
SPENDING OVER AUSTERITY
SPENDING.
AND THE DIFFERENCE.
I MEAN THE SEMANTIC DIFFERENCE
BETWEEN RIGHTSIZING AND
AUSTERITY, SOME OF THE NUANCES
ARE LOST ON ME BUT BASICALLY
RIGHTSIZING PER THE MEMO HERE
IS RIGHTSIZING GENERAL FUND
BUDGETS TO BETTER ALIGN ACTUAL
EXPENDITURES WITH
APPROPRIATIONS AND/OR
REDUCTIONS IN SERVICES.
THAT SOUNDS REASONABLE TO ME.
WHAT I THINK WE SHOULD BE
DOING, I APPRECIATE THE OPTION
OF USING ALTERNATIVE REVENUE
FORECASTS ASSUMPTIONS.
WHICH DIRECTOR PENNUCCI TOUCHED
HIM.
YES, WE SHOULD ALWAYS BE
CONSIDERING ALTERNATIVES TO
THE KNOWLEDGE THAT WE HAVE IN A
POINT OF TIME.
BUT I WILL NOTE IN THE CENTRAL
STAFF MEMO, WHEN COMPARING
OPTIMISTIC FORECAST ASSUMPTIONS,
VERSUS PESSIMISTIC ASSUMPTIONS,
THE PROBABILITY OF BEING
OPTIMISTIC IS 15%.
THE PROBABILITY OF COMING TRUE.
COMPARED TO THE PESSIMISTIC
SCENARIO PROBABILITY IS 35%.
I THINK BACK IT'S TO THAT BROWN
LINE THAT WAS PHYSICALLY
INDICATING WHAT WAS GOING ON
WITH THE WAR AND ANYWAY THE
POINT IS, IT SEEMS AS THOUGH WE
HAVE A DUTY EVERY YEAR TO MAKE
SURE THAT OUR ASSUMPTIONS ON
WHAT WILL HAVE TO BE SPENT THE
FOLLOWING YEAR ARE AS CORRECT
AS POSSIBLE.
AND THEN PROCEED FORWARD.
I AM NOT REALLY, I DO NOT
UNDERSTAND, I ALWAYS THOUGHT
THAT THE OPERATING DIRECTIVE
FROM CBO WAS ASSUME 6%
POTENTIAL REDUCTION.
NOW THIS IS 3. MAY BE OFF-LINE
I CAN GET A BETTER SENSE OF
THOSE DIFFERENCES IN NUMBERS.
BUT I JUST WANTED TO LAY THIS
ALL OUT BEFORE WE CONTINUE.
SINCE IT SEEMS THAT THAT WILL
DEFINITELY IMPACT WHETHER OR
NOT WE DO CONSIDER ADDITIONAL
REVENUE SOURCES GOING FORWARD.
THANKS.
>> DIRECTLYOR DINGLEY, VERY
QUICKLY.
AND THEN LET'S TRY TO ROUND OUT
THE DISCUSSION HERE.
>> OF COURSE.
THANK YOU.
AND THANK YOU FOR THE QUESTION.
RE-WE DEVELOP THE TARGET
REDUCTIONS BEFORE THE APRIL
REVENUE FORECAST CAME OUT.
WE DID REALLY GOOD GUESSING.
AND GOOD MODELING.
BECAUSE AS I MENTIONED, WHAT WE
ARE SEEING IN TERMS OF THE
ADDITIONAL COSTS THAT ARE
MANDATORY THAT WE HAVE TO FIND
THE FUNDING TO COVER, IT IS
MORE IN THE 6% REALM.
SO WE HAVE SORT OF 3% THAT YOU
SEE AS ONGOING.
AS MODELING HERE AS SHOWN AS
KNOWN.
AND THEN THE ADDITIONAL 3% IS
UNKNOWN AND HAS COME INTO VIEW.
IN THE DELIBERATIVE PHASE.
THAT I AM IN RIGHT NOW.
AND SAID THAT ADDITIONAL
REDUCTION IS NEEDED IN ORDER TO
BRING US TO BALANCE.
IF THAT HELPS.
>> GREAT.
THANK YOU.
ALL RIGHT.
TOM, LET'S FINISH THE
PRESENTATION.
IF THERE IS ANYTHING ELSE YOU
WOULD LIKE TO SHARE.
AND THEN WE CAN TALK ABOUT THE
NEXT STEPS THAT ARE LISTED ON
PAGE 15.
>> THANK YOU MADAM CHAIR.
AGAIN, CONTINUING THE ANALYSIS
OF THE DIFFERENT POSSIBILITIES
AND BUILDING OFF OF
COUNCILMEMBER NELSON'S COMMENTS
ABOUT THE DIFFERENT FORECASTS,
INDEED THESE PROJECTIONS ARE
SEEN IN THE BASELINE FORECAST,
ALTHOUGH THERE ARE LOWER
PROBABILITY SCENARIOS THAT
COULD COME TO PASS BASED ON THE
IMPERFECT INFORMATION.
WE JUST WENT AHEAD BY WAY OF
SENSITIVITY OF THE PROJECTIONS,
INCLUDINGSCENARIOS THAT
INCLUDE THE DIFFERENT OPTIONS.
THE FIRST WE ARE LOOKING AT
HERE ON THIS SLIDE IS, WHAT IF
WE ARE USING THE OPTIMISTIC
FORECAST?
WHICH IS THE 15% PROBABILITY
COMPARED TO 50% WITH THE
BASELINE.
WHAT WOULD HAPPEN?
SO THAT WOULD BRING THE
PROJECTED OPERATING GAP DOWN TO
$82 MILLION, IN 2023, AND $71
MILLION IN 2024.
IT WOULD ACTUALLY, BY 2026, IT
WOULD BE NEARLY ZERO.
THE 2023 ENDING BALANCE WOULD BE
A POSITIVE $14 MILLION, THAT
WOULD BE BALANCED BY STATE LAW.
AND THEN 2024 PROJECTED FOR THE
ENDORSED BUDGET WOULD BE STILL
$-57 MILLION.
AND AGAIN THIS IS NOT A
RECOMMENDATION OR ENDORSEMENT.
THE FORECAST COUNCIL HAS
ENDORSED AND SPOKEN WITH
REGARDS TO THE BASELINE
FORECAST, SO THAT IS WHAT WE
ARE STICKING WITH FOR PURPOSES
OF PROJECTION.
BUT THAT IS KIND OF THE BRIGHT,
THE BRIGHTSIDE SCENARIO.
THE OTHER, YOU KNOW, GIVEN DUE
CONSIDERATION OF ALTERNATIVES,
THE LESS, THE MORE DOUR AND
PESSIMISTIC SCENARIO, 35%
PROBABILITY, AND THAT IS SORT
OF IN LINE WITH IF YOU READ THE
FINANCIAL AND ECONOMIC
LITERATURE AND NEWS AS MUCH AS
I DO, GENERALLY CONSISTENT WITH
WHAT ECONOMISTS ARE PREDICTING
FOR CHANCES OF HER SESSION.
THAT WOULD GREATLY IMPACT THE
OPERATING GAP AND BRING
PROJECTION DOWN TO, IN FACT A
HIGHER GAP IN THE CURRENT YEAR.
BY $31 MILLION MORE OF LESS
REVENUE.
THOUGH IT IS NOT AGAIN A GAP
PER SE.
BUT JUST WANTED TO POINT THAT
OUT.
BECAUSE THAT WOULD BE THE
CURRENT YEAR IMPACTS.
BUT MOREOVER WE ARE LOOKING AT
FUTURE BUDGET, $173 MILLION GAP
IN 2023 AND $192 MILLION GAP IN
2024.
AGAIN THIS IS A SCENARIO AND
NOT THE MOST LIKELY ONE.
AGAIN LOOKING AT THESE NUMBERS
AND BUILDING OFF OF, YOU KNOW,
THIS IS STILL A WORK IN
PROGRESS COMMENTARY FROM
DIRECTOR DINGLEY, THE REVENUE
IS ALSO A SIMILAR WORK IN
PROGRESS.
THE APRIL NUMBERS THAT WERE
PRESENTED TO THE COMMITTEE ON
THE 20th OF LAST MONTH, WERE
THE FIRST OF SIX LOOKS AT
REVENUE.
AND REASONABLY EXPECTED TO HAVE
LARGE VARIANCES OF CERTAIN
PROJECTIONS.
SO JUST POINTING THAT OUT,
THERE WILL BE TWO ADDITIONAL
LOOKS THIS YEAR THAT WILL FORM
THE REALITY ABOUT HOW MUCH
REVENUE THERE IS TO SPEND, IN
THE NEXT FEW YEARS.
AND THAT WILL BE USED FOR
PURPOSES OF BALANCING THE
BUDGET.
SO YOU KNOW WE COULD TREND
EITHER WAY.
BUT I WANTED TO POINT THAT OUT,
WE ARE STILL IN EARLY INNINGS
WITH REGARDS TO FORECASTING
NEXT YEAR'S BUDGET.
AND IF WE CAN MOVE TO, IF THERE
ARE NO QUESTIONS ABOUT THAT,
MOVING TO THE NEXT SLIDE.
AND THIS IS BUILDING FROM AN
EARLIER COMMENT I MADE ABOUT
HOW THE PROJECTED DEFICIT, YOU
CAN SEE IN THE TOP LINE OF THE
TABLE IS SMALLER IN THE FUTURE
THAN IT IS IN THE MORE NEAR-
TERM.
GIVEN, YOU KNOW, PROJECTION OF
MORE RAPIDLY RECOVERING
REVENUES LATER IN THE YEAR, NOT
NEXT YEAR PER SE BUT IN THE
FUTURE.
SO AGAIN JUST BY WAY OF
MODELING THE DIFFERENT WAYS,
KIND OF BUILDING OFF OF THE
MYRIAD OF APPROACHES, THE
COMMENT FROM DIRECTOR DINGLEY,
THIS IS A WAY OF SAYING, DOING
A $79 MILLION LONG-TERM MEASURE
, WHATEVER THAT MAY BE REVENUE
OR EXPENDITURE.
AND THEN BALANCING THE HIGHER
GAP IN THE NEAR TERM WITH
TEMPORARY MEASURES.
AND JUST FOR THE PURPOSES OF
THIS ANALYSIS, LOOKED AT THE
2025 PROJECTION, BECAUSE THAT
IS WHEN THE DEFICIT STARTS TO
DECREASE.
AND THEN BASICALLY IMPUTED HOW
MUCH SHORT-TERM SUPPORT WOULD
BE NECESSARY TO BALANCE THINGS
OUT.
SO AS YOU CAN SEE THE REVISED
BALANCE IS ACTUALLY A POSITIVE
$82 MILLION AT THE END OF 2023
AND THEN GROSSED AT $22 MILLION
AT THE END OF 2024.
SO THAT IS SIGNIFICANT EXTRA
ONE-TIME RESOURCE.
USING THIS TYPE OF APPROACH.
SO IT KIND OF TRIGGERED THE
THOUGHT OF, WELL, WHAT IF,
INSTEAD WE MODEL AND APPROACH
THAT RELIED ON THIS BALANCE'S
GOING INTO 2023, AND MITIGATED,
AND THE NEED FOR LONGER-TERM
MEASURE.
SO THAT IS HOW THIS WORKS.
WE ADDED A LONG-TERM MEASURE.
SO, AGAIN, THIS IS THE CONCEPT
OF A REVENUE OPTION, PERHAPS,
THAT TAKE SOME TIME TO RAMP UP,
THAT DOESN'T START UNTIL 2024,
$65 MILLION, JUST FOR PURPOSES
OF MAKING THE NUMBERS WORK.
THEN LEGGING IN THE SAME
TEMPORARY MEASURES, $48 MILLION
A YEAR, BRINGING THE ENDING
BALANCE TO A POSITIVE NUMBER.
SO IF THIS APPROACH USES A
COMBINATION OF FUND BALANCE,
ONGOING STRUCTURAL MEASURES,
WHICH ARE REVENUE OR
EXPENDITURE IN NATURE, IN THE
SECOND YEAR, AND TEMPORARY
MEASURES.
IN 2023-24, TO THEN MAKE THE
NUMBERS BALANCE OUT BASED ON
THE PROJECTIONS.
WHICH OF COURSE ARE IN
DEVELOPMENT AND WILL CHANGE IN
THE NEXT LOOK.
BUT I HOPE THAT THAT IS HELPFUL
IN FORMING THOUGHTS OF
DIFFERENT APPROACHES AND
DECISIONS THAT CAN BE MADE.
>> GREAT, WE WILL ALSO JUST
EMPHASIZE THAT THIS IS A
THOUGHT EXERCISE.
AND IT HAS BEEN NOTED BY CBO
AND CENTRAL STAFF.
SO I DO NOT WANT FOLKS TO
NECESSARILY THINK THAT THESE
ARE TOO TWO OPTIONS, THEY ARE
VARIOUS SCENARIOS THAT CAN BE
MIXED AND MATCHED IN CERTAIN
WAYS, AND VARIOUS LEVERS CAN BE
PULLED.
AND AS DIRECTOR DINGLEY NOTED,
ALL OPTIONS ON THE OPTION LIST
IF DEPLOYED TOGETHER COULD BE
MIXED AND MATCHED AND TRY TO
GET US INTO THE THE BLACK.
SO THE ENDING ON THE NEXT STEPS
IS REALY IMPORTANT HERE.
AND THEN ALSO SUMMARIZING ON
PAGE 15 OF THE MEMO, THIS IS
REALLY FOR CONTEXT, AS
COMMITTEE MEMBERS WE ARE VERY
INTERESTED IN WHAT IS THE
BOTTOM LINE.
WHAT IS THIS MEAN FOR US IN
2022?
YES, IN TERMS OF ADOPTED
BUDGET.
BUT ALSO HOW DO WE PREPARE FOR
2023 AND BEYOND?
IN LOOKING AT THE FINANCIAL
HEALTH OF THE CITY'S BUDGET FOR
THE NEXT SIX YEARS IS SOMETHING
THAT AFTER TODAY WE ARE ALL
COMMITTED TO.
ADDITIONAL COMMENTS AND I SAW
DIRECTOR PENNUCCI COME OFF OF
MUTE.
ANYTHING ELSE YOU WANT TO ADD
TO THAT?
>> NOPE, THANK YOU.
I THINK YOU COVERED IT.
>> THANK YOU.
DIRECTOR DINGLEY, ANYTHING TO
ADD?
>> NO, JUST TO SAY, THANK YOU
FOR HAVING ME TODAY.
>> OF COURSE.
THANK YOU.
AND PLEASE PASS ON YOUR, AND
PLEASE PASS ON OUR APPRECIATION
TO YOUR TEAM AS WELL.
AGAIN WE WILL HAVE THIS SIX
YEAR FINANCIAL PLAN PRESENTED
FOR THE FINANCE AND HOUSING
COMMITTEE MEETING IN AUGUST.
AFTER WE RECEIVE THE ADDITIONAL
INFORMATION FROM THE REVENUE
FORECAST OFFICE AND THE CITY
BUDGET'S OFFICE.
AND THE AUGUST PRESENTATIONS.
WE ANTICIPATE AT THE END OF
SEPTEMBER, AS PER USUAL, THE
MAYOR'S POST BUDGET WILL BE
COMING DOWN.
WE ARE COMING BACK TO THE
BIANNUAL BUDGET OF SORTS.
SO A 2023 ADOPTED AND, EXCUSE
ME, 2023 ADOPTED, 2024
ENDORSED, AND THIS WILL
HOPEFULLY BE ONE OF THE LAST
TIMES WE DO A SEMI-BIANNUAL
BUDGET.
BECAUSE WE ARE ALL LOOKING
FORWARD TO THE BIANNUAL
BUDGETING.
AND AGAIN COLLEAGUES, I THINK
THAT THERE WILL BE MANY MORE
CONVERSATIONS THAT FOLLOW THAT
ALL OF US WILL BE HAVING, ABOUT
WAYS TO ADDRESS THESE ISSUES,
LEADING INTO AUGUST.
IF NOT BEFORE.
AGAIN, THANKS TO THE EXECUTIVE
TEAM FOR PULLING TOGETHER THE
REVENUE TASK FORCE, THANKS TO
THE CITY BUDGET OFFICE FOR
CONTINUING TO WORK IN SUCH
TIGHT COORDINATION AND
COLLABORATION WITH THE CITY
CENTRAL STAFF HERE.
LOOKING FORWARD TO THE FOLLOW-
UP ON THE CATALOG CONCEPT.
THE LONGER LOOK BACK AT THE
HISTORIC UNSPENT TRENDS.
AND ALSO KEEPING IN MIND SHORT-
TERM STRATEGIES VERSUS LONG-
TERM WAYS TO ADDRESS THE BUDGET
NEEDS.
REALLY GOOD NEWS ON MONITORING,
AND THE REAL-TIME TRACKING OF
BUDGET EXPENDITURES BY THE
DEPARTMENTS.
THANK YOU DIRECTOR DINGLEY FOR
THE UPDATE THERE.
AND COLLEAGUES I KNOW WE WILL
ALSO BE CLOSELY TRACKING WHAT
IS GOING ON IN CONGRESS AS WELL
ABOUT ANY ADDITIONAL RELIEF
THAT MAY BE COMING.
BUT ABSENT ADDITIONAL FEDERAL
RELIEF, WE KNOW WHAT THE BUDGET
IS FROM THE STATE, WHICH WILL
PROVIDE TREMENDOUS RELIEF IN
FOOD ASSISTANCE AND RENTAL
ASSISTANCE AND THINGS LIKE THIS.
BUT WE HAVE A LONG-TERM NEED
THAT WE WILL CONTINUE TO LOOK
AT.
THIS HAS BEEN VERY
ILLUMINATING, I WANT TO THANK
EVERYONE FOR THE HARD WORK IT
HAS TAKEN TO GET TO THIS PLACE,
PROVIDING THIS DETAILED
ANALYSIS OF THE SIX-YEAR
OUTLOOK.
AND THERE WILL BE MORE
CONVERSATIONS TO COME,
COLLEAGUES, AS WE GET THE
INFORMATION THAT YOU REQUESTED
FROM CENTRAL STAFF.
AND OBVIOUSLY HAVING MORE
CONVERSATIONS WITH THE
EXECUTIVE MEMBERS OF COMMUNITY
AS WELL.
SO WITH THAT, NOT SING
ADDITIONAL HANDS, THANK YOU
BOTH, BOTH TEAMS, CENTRAL STAFF
TEAM AND EXECUTIVES CITY
LEGISLATION OFFICE FOR YOUR
HELP WITH THE HESITATION.
THANK YOU FOR THE MEMO AND
WALKING THROUGH THE MATERIALS
TODAY.
WE HAVE REACHED OUR AGENDA AND
THE FINAL MEETING WILL BE MAY
18th AT 9:30 A.M.
WE ARE FINALIZING THE AGENDA
AND YOU CAN EXPECT TO SEE THE
2021 ASKED FUND BUDGET EXPENDED
ORDINANCE, AND HOPING TO MAKE A
BUDGETING TOOL EXCEPTIONAL AND
MORE TO COME ON THAT
CONVERSATION.
WE WILL ALSO HAVE THE ANNUAL
HOUSING LEVEE REPORT AND THE
ITEM THAT WE CARRIED FORWARD
FROM TODAY, THE OFFICE OF
HOUSING STAFFING PLAN.
AND WITH THAT, THANKS FOR YOUR
ENGAGEMENT AND PARTICIPATION
COLLEAGUES.
OUR COMMITTEE MEETING IS
ADJOURNED.
HAVE A GREAT REST OF