Good evening, everyone.

Welcome to the committee of the whole meeting on March 9th, 2023.

I call this meeting to order.

Councillor Davis is excused this evening.

All other counselors are present.

Members of the public, city staff, and the media have the ability to view this meeting in person and on live streams through four different platforms Gov TV on Cam Comcast Channel 16 and Gov TV website, YouTube, and Zoom webinar.

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Also, this meeting is closed captioned, and you may enable the closed captioning services on your television or device at any time.

The video recording of this meeting will also remain available for viewing at any time on the city council's website.

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Please call 505 768 3100 for assistance during business hours, which are Monday through Friday, 8 to 5 p 8 a.m.

to 5 p.m.

Members of the public have the opportunity to address the committee if they have signed up for public comment for the rules published on our agenda and on our website Friday.

And I've been informed there are no public speakers tonight.

Today's meeting of the Committee of the Whole is to consider the 2023 through 2032 decade plan for capital improvements.

The purpose of this meeting is to focus on the proposed committee substitute and amendments.

At this time, I would like to welcome Mark Mark Motsko, CIP official with municipal development department, to give a brief presentation.

Mr.

Motsko, before you begin for the counselor's uh reference as well, tonight's plan, counselors, is to hear some presentation.

Uh and then in between some of the departments as we proceed through the through the way everything is laid out in the uh resolution, we'll have opportunity before we move on too far from the actual department itself to ask questions.

So please make note of your questions if you have them already, or as Mr.

Motsko is giving the presentation.

Once and if you have any questions, then the department director can come up and go ahead and answer those, and then we'll move on to continue on the presentation for the next department and subtitle heading that is listed in the presentation.

Thank you.

Good afternoon, Madam Chair, fellow counselors.

For the record, my name is Mark Motsko.

I am the CIP official with the CIP division of the Department of Municipal Development.

Joining me tonight are the Chief Operations Officer Kevin Soraso and 18 department directors or chiefs and their staff who will be available to answer your questions.

It is my pleasure to present Mayor Keller's recommended 2023 Geobond program and 2023 to 2032 decade plan to the City Council in person for the first time since 2019.

I come with good news and bad news.

The good news, our financial advisors, RBC Capital, who could not make it tonight, are comfortable with an increased bonding capacity of about 200 million dollars for projects.

The bad news?

Construction market indicators of increased inflation, soaring equipment and supply prices, and an extraordinarily tight labor market will not allow us to make this funding stretch as far as we were hoping.

For the record, planning for the geobond program uh is a two-year process.

The process began more than a year ago with City Council adoption of the criteria resolution.

This resolution establishes policy and specific criteria for evaluating projects proposed for inclusion in the 2023 program.

So how do we do that?

We do that by going to the departments and saying if you had this much capital for 2023, what projects would you use it on?

They send us all their projects back in a list.

We form a staff committee of professionals across the city, rate and rank all of the projects, then take those rated and ranked projects and go to the CIP committee, which is comprised of the CAO, CFO, and Director of Council Services.

They meet to finalize the project, the program, submit that program to Mayor Keller.

Mayor Keller then sends his recommendations to EPC, and then from EPC to the council.

Council holds this meeting, committee of the whole, and once marked up and approved, we will put the 10 bond questions on the ballot for voters in November.

I would like to take a minute to thank the excellent staff at all the departments and staff review committee for their hard work on rating and ranking these projects, coming up with the projects.

And especially I want to thank tonight my staff of Sean Maiden, who crunches all the numbers, and Donna Prieto Altamorano, who has created countless books like the ones in front of you and documents like the ones in front of you, and who has been absolutely invaluable my entire career at the City of Albuquerque.

This sounds like it's going to be her final geobond cycle so she can finally retire and spend time with her grandchildren.

In the best interest of your time, at the end of my quick presentation, I will be going through section by section of the program and allowing us to address any questions you may have of the departments.

So during the CI committee in July, RBC Capital, the city's financial advisors, told us we could comfortably plan to a bonding capacity of 180 million dollars due to strong property tax growth and collections.

With construction costs increasing rapidly, it was felt at the time that an extra 20 million dollars would deliver greater value to the residents now than in future cycles.

Then, therefore, it was agreed that the bonding capacity could be raised to 200 million dollars with minimal impacts to future uh out years.

And that's the second uh column with 200 million dollars and 175 million dollars moving forward.

This is based on a very conservative average increase in property values of 3% in 2023 and then moving down to 2.5% afterwards.

For example, if the average evaluation were to increase to 3.5%, we could bond for another 200 million dollars in 2025 and for the years out.

Counselors, please don't ask me questions too much about this slide, as I am most certainly not the financial genius Eric Harrigan from RBC Capital is.

If you'd like to ask him for more information, I would be happy to invite him to our next meeting.

So, very quickly, how is the 200 million dollars down for 2023?

Basic services is allocated at about 51.5 percent, just shy of the hundred of 103 million dollars of proposed programs.

Community facilities, which includes affordable housing, is allocated a little more than 36 and a half percent or just over 73 million dollars of proposed program of the proposed program, and mandated programs make up the difference of 12 percent or 24 million dollars of the proposed program.

You can see the full breakdown on page 214 in the document on your iPads.

Please note 02236 permanently increased the mandate for public art from 1% of the program to 1.5% of the program.