No, that's where we're working on it, right?

Where's the one?

Where's the one?

Oh, you open uh space test.

No, okay.

One is proclamation and the other one is citation.

Uh by controller, I always although I've not had a citation for the positive thing.

I might do it to you.

I'll do it to chat.

No.

I think that's the one that's moving around.

Yeah.

So public works is up by the version.

Right with these case.

I am I'm probably gonna bring my control too because I have no starting.

The microphone is already on there.

There's a little button there.

It's already bringing like on and so I want to put it over here.

No, you don't have a whole engine.

Just let you know it's already on.

Okay.

All right.

We will get started with the budget and finance committee meeting for today.

Thank you all for being here.

Um so the main thing on our agenda is the discussion on R eighty.

Uh Mr.

Clerk, do you mind giving us a roll down of R eighty?

Uh R eighty authorizes the expenditure of council funds for an independent five-year financial analysis and providing for the temporary deferral of certain capital projects pending completion of the analysis.

Thank you.

Um so I know this was referred to the committee.

Uh I I guess I'll let council person uh vendor uh kind of introduced some of the thought process behind this and uh, you know, as a committee we can kind of review some of the thoughts and and the exploration that's been done today.

Thank you, Council Person Bongo.

So, yeah, the the goal of this resolution is really to evaluate well, evaluate is probably the wrong word.

Um to take in all of the um unknown expenses that we have that have um kind of popped up.

We have uh potential for a um uh a police draw program, we have a potential for other fees that we might be losing, as well as we have a whole bunch of capital expenditures.

And the thought process in this is to say, okay, let's take a moment here, have someone go through and and and gather all that data, put it together and present it in a way that we can have someone outside of our org look at it and say, yes, this seems like we're in a in a good place, or maybe we need to you know evaluate what sort of things we can proceed with from a capital perspective, um and just kind of just take all that data in and and and kind of do a health check, I think is is what that is.

So the point of this is to say, all right, let's let's pause here for a second on some of our large projects and let's have a third party just do an evaluation.

Now I know that we we outlined the uh cost in this uh for a not to exceed twenty-five thousand dollars.

Um this is a very scoped um uh review of this.

It is not gonna be I with that with that um budget item, there's not gonna be like there's a limit how much we can do both in um the scope of the of the agency doing this as well as we're bound by our timeline right now because we want to make sure we get this data in before uh budget season when we have to make some decisions.

So thought is this is to work um well with uh the finance department um to gather that data, take it, um, evaluate and then present back to us prior to uh budget time.

Um I don't think that they gave us an exact did they give us an exact time when they were looking to return by if we execute this?

We so Bita would remember we did talk about the April timeline, did we?

Yes, so the uh we had a conversation uh last week, and there um the uh uh firm Maroduso um is willing to work with us and provide this within the timeline um that would give you enough information to make decisions.

Okay.

So within within our um in other scope of work, uh we will provide the information they request, and they would provide the product with within the time frame, so it will be enough time um for you to help you and assist you in making decisions.

Okay, thank you.

So, yeah, I mean that's that's the frame of this.

It's trying to be pretty narrow in what it's what its uh focus and scope is, but it's really just to provide us with uh some meaningful information based on a lot of the new uh things that have come up since uh since this was evaluated last uh last fall.

Okay, thank you, Council Persian Binder.

Oh, Council Person.

Yeah, no, I'm glad that you put this forward because um I think at least for my perspective, um these in case I spit as I speak.

Um it seems like sometimes we have like there's a fire station, there's a police station, then there's parts and wreck, and then there's it's like a lot that happens and it happens like not in silos, but just at like various times, and it's hard sometimes to see the big picture, and then look at like okay, the interest rate for this loan versus and then the interest rate for this loan in five years and ten years, and just kind of looking at it from a big picture how everything works together, especially if we are asked once again to raise taxes.

Um it'd be great to be able to say to constituents, hey, yeah, raising taxes, and this is what you're getting for that, and this is how much money it's gonna cost.

So if your taxes are going up $2 or whatever, that that $2 is gonna contribute to these specific projects and be able to really paint a clear picture to people instead of just making vague statements, hey, we've got to raise your taxes so you can continue to get services.

No, specifically, this is what we need to do.

Um, so yeah, I think that would be helpful.

And again, just to have like a very um clear visual, like here's everything, here's the thing that we want to do, but we're not sure if we can do it, like that that would be cool.

I I completely agree with you.

I think definitive um that this funding is supporting this project is I think what you are saying, and that um brings clarity, transparency uh for us, for you, for taxpayers.

Um so I completely agree with that.

Um, many of the uh projects will be funded with the bonds that will be issued.

We have not issued any bonds yet, but um, and then I do understand that we purchase um many times equipment that happens after the budget is approved, and and it's you're not always um paying aware of maybe what percentage we are paying on that loan that we are um purchasing the equipment with.

Um so I completely agree um that this independent um uh uh you know um five-year plan uh that uh outside of our organization will uh prepare, we'll give you um the comfort level taxpayers at comfort level.

Um the data will be provided by the finance department, uh so you know what's in the budget, but this will be highlighted and in a different manner.

Sometimes the same things um communicated differently makes sense.

So maybe that that's what this will do.

And uh I also would like to say that I like what we said about transparency.

I think that that's that's very important, especially for the taxpayers.

Um, and um another thing, there's always things um that happens, and is sometimes I feel that he's uh it's it's out of the blue, you know.

Um, you know, the insurance being raised, you know, the drop and all that.

And I think that if we know what are what are the priorities and uh and what are the projects, I we'll we'll have a better understanding and also uh um we could be responsible when it comes to um you know voting the right way.

What are the priorities?

What's gonna happen five years from now?

How much will the taxpayers are gonna have to pay if we do this or if we do that?

So, yeah, I do agree with all of you.

This really will help us tremendously.

So I again I I do agree.

I think that um same information communicated differently, sometimes we make a difference.

Um you do have the projects, we do list them in the budget book, the capital projects every year.

Um, some things that come up outside of the budget, and I think that's what you are referring to.

Um, the healthcare cost, you know, we are self-insured.

Um very ill, and that it throws our budget off.

That's unexpected expenses outside of our control.

So maybe those those are included in the projections.

Um we were just having conversations with the PWC um that provides us with the trends that what you know, looking at 12 months, 24 months ahead, what will that um rise in health care costs will look like?

They are projecting between nine to twelve percent increase in health care costs.

So that that will be incorporated now because that information just came out, right?

So um I I think this is a good thing.

It's about being fiscal fiscal uh uh responsible.

Thank you.

I'm sorry.

And just so I'm just for clarification, is we're capturing the way I'm understanding this, that we're capturing that that outlook with both our capital and our operational expense in this process is the way I'm understanding it's being scoped.

Yes.

So in that um capital and yeah, it just so the capital and the um uh operational, yes, because um debt fund receives funding from the general fund.

So the fund that every um year we transfer a payment um you know into the debt fund so it can make the payments.

So yes, for capital as well as the uh and same thing with equipment funds.

It's budgeted um the fund is separate, the general fund, we transfer funds, monies from the general fund to this um debt fund and equipment funds to make the payments for projects that uh we all agree on.

And and I'm hopeful with this to your point with the presentation side, um, kind of I don't say the single pane of glass approach, but being able to try and present that so that both both council and and the general public has a very, very clear understanding because to uh council person girlak's comment.

If we're gonna have to say, hey, we want to increase to do this, fine, but if we maybe can't do something, um, because that that's the decisions.

I mean, I think we're all aware that stuff is getting more and more expensive as the hour goes by.

So it's you know, we could we're gonna have to make some tough decisions, and I think um we really need that data to be able to do uh to make those decisions.

So yeah.

And I am in an agreement and cannot um you know you need this information to make the decisions, and um uh that this firm is willing to provide that within the timeline uh that we are expecting um we are expecting so um it should be helpful.

Um and we are uh ready to go.

Um we are ready to move forward with it.

Um I completely agree with all of you uh that this will be um not that we are not being transparent, the information is there, it's just maybe um having that laid out differently.

Some of the things that happened after the budget was proposed outside of our control, and that will be incorporated into this, and then uh to uh Ms.

Garlog's um statement, which is absolutely accurate that if if we have to increase property tax, then we can say to do this um project, we need to increase the property tax by this percentage.

We can relate those things together rather than just saying that we need to increase the property taxes.

So completely makes sense to me.

Thank you, Director.

So I guess to kind of lay it out in its bare bones for everyone who may be listening and want to get the full picture.

So this essentially gives City Council the right to um authorize up to 25,000 worth of an expense in order to do this analysis, they will provide a deliverable of essentially different scenarios that we asked for.

So what would it look like to incorporate, you know, whether it's drop, stormwater fee, capital projects, all these things all in conjunction.

So we can you know potentially ask like what would that look like if we do everything and is there a tax increase?

If so, how much versus like okay, if we do this, this and that, we can kind of again like we all mentioned, look through that and see what's the most necessary and responsible for the city.

Um I think based off of the way that this is written and put together and the pricing of it, I think it's specifically as an ex like essentially uh an add-on to a contract to the auditor that already is currently working on the city's audit.

Um I know there were some conversations early on as to whether or not that's something that we're gonna pursue with someone else, or if we were gonna put out a full RFP.

So right now this one specifically is to do that with more strusel.

And I apologize if I'm butchering that.

Uh there is always if we wanted to do a more in-depth long-term analysis.

This one's kind of you know, big picture looking at the pieces.

If we wanted to see what would it look like to have changes in other parts of the budget or other things, we could do that after the fact.

I think there's just some concern that if this study was going to be too too in-depth, we wouldn't get it in time.

And so this is the way we can get it done fastest and in time for budget season.

So I guess I'm wondering, does anybody have any?

Are we all good with that?

And solid with that.

All right.

So I I would just say this, and perhaps the director can fill in more of the blanks.

So I think once this would be authorized, we would ask them for an engagement letter that Santo would would sign, and you guys would see that engagement letter.

That would be needed before any expenditure is made.

That's how I'm assuming it would happen.

Absolutely correct.

So we once uh we are in an agreement, we'll uh have to draft or uh provide them uh with an engagement uh letter.

They will detail as to this is a project-based um uh approach that they had uh provided.

So in detail, we we should re um request that um what they will be providing and what we will be receiving at the end of um you know when this project is completed.

Are they providing us with the Excel worksheet so we can we can also do as we saw that um the Supreme Court uh made a decision during the year that stormwater fee um might be impacted and we might have an impact so that we could incorporate those changes into a product that they have created?

So I I would make sure, and I think I I have provided some of that details that if we are moving forward with this, these are the um things that we should request in an engagement letter.

So we are um getting someone you know, getting the product that you are seeking, and it's helpful to us now and then the future years.

Absolutely.

Thank you.

Go ahead.

I did want to just note just for clarification, too, that the 25k that were were if if approved is coming out of what is the budget line item of council, correct?

This is coming out of our um council budget items.

I'm just making sure everyone's clear on that.

That's what that's coming out of.

So absolutely it's coming from the council's budget.

Yeah, I just want to make sure I like to make sure everyone's aware of everything before beforehand.

So all right.

I'm just glad that we're doing this.

Agreed.

I think to to your point, council persona, it's like one of those things that sometimes things come up in this stormwater decision from the Supreme Court, is one of those things, you know, you could be planning to do something in your house, and then the water heater breaks, and then all of a sudden you have to figure out how you're gonna fix a water heater.

So you know, I think it's it's a good show of fiscal responsibility.

Yep.

All right.

Uh do we have any motions to forward to make a motion to forward this from the full council?

Thank you.

I'll second.

All right, motion seconded.

Thank you.

And then uh all in favor, say aye.

Aye.

All right.

And we'll have this go to council.

Um anything else for the good of the cause.

I believe that's the end of our agenda, but whether the director or any council people have anything to present or discuss.

Um nothing at this point.

Okay.

Thank you.

Thank you.

All right.

If that's it, then I will adjourn today's meeting.

All right, thank you.