Cool.

I will now reconvene the meeting of the Beaverton Budget Committee.

City Recorder, will you please call the role?

John Duggar.

I am here.

Ashley Hartmeyer Prigg.

Here.

Nadia Hassan.

Here.

Edward Kimmy.

Here.

Kevin Teter.

Here.

Alison Tivnon.

Here.

Lacey Beatty.

Here, but I'm a little sad that you didn't start the meeting singing to us.

So next time.

Tiny bubbles in the sand.

I can do Don Ho.

If you don't know who Don Ho is, you're too young.

My understanding is Nelson Banyus is absent tonight.

Stephen Bennett.

Here.

Thank you.

Chris Campbell.

Nope.

Julie Langford.

Here.

Thank you.

My understanding is Teresa Payne is absent.

Vanish Shaw.

Here.

And Kia Sunberg.

Okay.

She's in the waiting room.

Yeah.

But no Chris Campbell.

Okay.

We'll mark him if he comes in.

Thanks.

Boom.

I will now open the public hearing on the proposed City of Beaverton fiscal year 2026 to 27 budget.

Before we jump in, uh city councillors, if you saw the note around, and this is specific to the council members, uh, around the conflict of interest.

How do we want to proceed with that?

That's not something we've done in the past.

Um it probably makes sense for if if one of us to do it for all of us to do it, but mayor, do you have something?

I mean, I I called other cities today, literally, no one else is doing this.

I asked the city attorney to write a legal recommendation on like how they got to this information.

I still believe it's unnecessary.

I believe that we even if we were to raise our own salary, our charter prohibits us from taking it.

Um, but we've not talked about it as a council, but I am worried about the precedent that we're setting, not only for this body, but for every other city that's gonna be forced into doing this.

And so uh I'm I'm I am vitaminally opposed to us doing it, but if one person does it, we all need to do it.

I I think that the charter already protects us from this um conflict of interest that arises.

Well, how about this?

I will give everyone, counselors uh 20 seconds to determine if you would like to do a conflict of interest statement.

If you would, um you you are free to do so.

Just raise your hand or put your name in the chat and then we'll go from there.

If I don't hear anyone in 20 seconds, we'll move on.

Uh while I agree, I understand the mayor's perspective.

I just I want to read what's here for the sake of this is I'm assuming this is at the advice of the city attorney.

So the budget approval includes compensation to council members.

I'm declaring a potential conflict of interest because that impacts my personal financial situation.

Anyone else?

If one does it, we should all do it.

So I'll declare a conflict of interest uh because of my personal um uh salaries mentioned in tonight's budget.

This is Councillor Hartmeyer Prigg.

The budget approval includes compensation to council members, so I am declaring a potential conflict of interest because that impacts my personal financial situation.

This is Councillor Tivnon.

I'm declaring a conflict of interest or potential.

Which one?

Potential.

Okay.

Potential conflict of interest.

Um council compensation is discussed in this budget.

Thank you.

Um before I share this, I will say that uh this is a decision that council has already made in the past about uh how council compensation will increase according to Cola uh rates.

Uh so this is not a policy we're implementing right now.

This is just council compensation is mentioned in the budget.

So I also feel like this is unnecessary, but I will declare a potential conflict of interest just because of the council compensation is included in this budget.

Thank that's everyone except me, so I'll go ahead and uh budget approval includes compensation.

Kimmy.

Oh Councilor Kimmy, sorry.

I was trying to find this quick, but I have a official conflict of interest because budget includes uh portion of my salary.

Is that what it is?

Yep.

Thank you, Councilor Kimmy.

Uh and I'll do the same budget approves uh approval includes compensation council members.

So I'm declaring a potential conflict of interest because of impact because it impacts my personal uh financial situation.

Um so let me see.

Uh now for those of you who may not be able to stay for the rest of the meeting, we will start with an opportunity for members of the public to comment on the budget before the staff presentations later this evening uh on the public works fund and the capital improvement fund.

There will be an opportunity for public comment uh after the staff presentations as well.

Anyone wishing to speak at this hearing should follow the instructions included on tonight's agenda.

Each member of the public who speaks uh at tonight's hearing will have a maximum of three minutes city recorder.

Is there anyone to testify?

No, we don't have anyone for public input.

We do have oh, we do have one.

Okay.

You're gonna go ahead and promote them.

Yeah, we have a few people here for the hearing, but not for input yet.

Um in person, one person online.

Sorry.

Sure.

Do we uh have a name?

Blaine Soliman Pearson has raised his hand.

We're just bringing him online along with the timer.

I see.

Uh Blaine Solomon Pearson, uh, you have three minutes to address the public uh budget committee.

Uh good evening, members of the budget committee and city council.

My name is Blaine Solimani Pearson, and I'm a Beaverton resident.

Uh City Budget is a moral document that reflects our values and our conscience.

Right now, our community is feeling a profound imbalance.

Every day, people are struggling under an affordability crisis, yet we continue to see massive corporations and data centers secure long-term tax breaks and drain millions from our public wealth.

When we subsidize corporate interests, our community needs um over our community needs, we compromise our schools, our infrastructure, and our families.

Some of these decisions are out of the city's control, but what remains in the city's control must shift power and resources back to the working class residents who power the city.

An ethical budget means ensuring that local public dollars are never used to facilitate or profit from the violation of basic human rights.

We must establish strict accountability standards that ensure our city resources are used as a firewall to protect our community members.

Concretely, this means implementing rigorous guardrails to ensure no city funds, personnel, or technologies are ever entangled with rogue federal agencies, engage in civil immigration in civil immigration enforcement.

Beaverton has made a strong sanctuary promise, and I thank all the counselors involved in in uh working on that.

Uh, but the promise must be backed by the power of the purse.

True sanctuary means establishing structural boundaries so that zero local dollars ever drift into supporting the machinery of mass detention and deportation, especially without due process.

Furthermore, our commitment to human dignity cannot stop at our city limits.

We must look historically at our supply chains, our procurement practices, and our municipal financial portfolio.

I urge this committee to adopt comprehensive ethical screening criteria for all major city vendors and corporate contracts.

Beaverton should explicitly restrict public funds from flowing to any corporation or entity that is complicit in systemic civil rights abuses, manufacturing practices that exploit workers, or actions that actively harm civilian populations wherever those abuses occur.

By anchoring our procurement rules and universal humanitarian principles, we ensure Beaverton's financial footprint remains clean, ethical, and aligned with the public good.

We have an opportunity to lead with a budget philosophy that rejects corporate handouts and firmly upholds human dignity.

Let's make sure that every dollar paid by our residents is an investment in safety, equity, and justice.

Thank you all for your time and your leadership.

Thank you, Blaine.

Uh City Recorder, is there anyone else?

I don't see anyone.

That was the only person for public input.

Okay.

Um we now we now have two presentations from the assistant city manager.

We'll begin with the presentation of the public works funds budget followed by the capital uh improvement program budget.

Um city manager or staff.

Okay, uh so is the presentation's coming out.

My name is Dan Weinheimer.

I'm uh the assistant city manager.

And uh yeah, we're gonna talk this evening about uh the public works and capital development, capital projects and utilities funds as well as capital improvement projects uh that are planned for the next year.

Um so I will look for the occasional help on some of the questions, there'll be pauses uh through blocks of this because it is rather rather dense material.

Um there'll be pauses for questions, and then I will also look to some uh colleagues in public works and or finance for some help and any questions you all have.

Thank you, Dr.

As a reminder to the uh budget committee too.

If you have questions, we will pause after, uh, but just put your name in the chat and I'll call you uh in the order they're in there.

Go ahead, Dan.

Thanks.

Um, so let's uh move to the next slide and we'll start with the Capital Development Fund.

So the Capital Development Fund uh, as it says uh focuses on civic capital projects, uh things that uh improve quality of life and promote uh civic and cultural uh amenities in the city.

Uh the funding for this uh fund is derived from many sources, including general funds uh grants, donations, and uh funding from other governments, and and often we think about the federal government uh when we think about other governments in this case.

Um if we can move to the next slide, um the we are on page three ninety-five.

Sorry, I forgot to point that out for folks who are following along in their binder.

Um the capital development fund um has seen uh a good amount of activity over the last couple of years because it was uh the place that we were using to uh move the resources used for the Beaverton shelter, among other projects.

Uh recently completed uh projects include the shelter, the replacement of the playground equipment at City Park that was damaged with some storm and ice damage, um, and electric vehicle charging facilities.

So just an example of things that have been funded through here.

Um for the next year or so, we are definitely seeing a ramp down of activity in this fund because of the shelter wrapping up.

There are a few sort of things that have been uh punch list items, one being uh the capital outlay item, which is uh you can see 27,000, a reduction from previous years.

The 27,000 is for um art, uh the 1% for art.

Um, and I believe the details are being worked out and finalized still, but we have an artist in residence who I believe is going to be working collaboratively to do classes and art education with uh residents of the shelter.

The other thing uh to point out on this is uh we had received a grant uh from the HUD uh for funding related to the shelter and actually did a swap of uh supportive housing services funding through Washington County, and we're able to fund use that swap to fund construction.

And so the remaining uh materials and services that are in here are actually uh closing out or what we expect at least to close out that uh swap process and sort of close out our uh construction from that.

So I hope that makes sense.

It's a little bit complicated in terms of uh the moving parts here, but ultimately what you're seeing here is largely in this fund related to the shelter completion.

So we can move to the next slide.

So the Capital Projects Fund, uh, you know, conveniently named very similarly to capital development, um, actually does different things.

It is more focused on transportation, capital projects and uh transportation that promotes connectivity and um improving uh people's ability to get around uh and through the city.

And so um really looking at things to maintain accessibility and to connect systems where they might not be as well connected.

Um the fund derives uh it derives resources from the street fund, which uh we'll talk about in a little bit.

Uh also from the transportation development tax or TDT.

Uh the TDT is uh actually funding through Washington County program that is a tax that then is uh expanding capacity, so adding capacity for transportation improvements when uh development uh necessitates them.

So the TDT is uh uh essentially kind of a thing that developers pay into and can uh we can bank that out into uh projects as we need to expand.

Uh the MST, MSTIP, uh whatever you however you want to pronounce that acronym is the major streets transportation improvement program.

We're gonna talk about that a couple different times in this presentation.

MST.

Uh we have uh a unique program in Washington County that was actually started a long time ago through levies and is now actually funded through property tax.

The MSTIP or MST is geared towards uh adding capacity and connectivity to our system.

So similar to TDT, where it's more of an expansion idea, it's funding that we can use and essentially apply for as grants for specific projects through Washington County.

Other things are other grants and other governments.

So again, looking likely to the federal government for sources and other governments category.

And then budget projects are the Milkenway realignment and the Westgate Dawson realignment.

So move to the next slide.

And specifically looking at Millikan Way, where we're finalizing design and likely to see the beginning stages of construction over the next fiscal year.

And so that's we're moving funding to prepare for that project.

The Westgate Dawson realignment, that is realigning the road as it was described to me to avoid the fraudger that you have to do to get across the Westgate area.

So, you know, essentially looking at moving the TDT and funding that project, but again, putting that funding into the intergovernmental revenue line.

Same for capital outlay, where we're seeing an increase.

We're again paying for those projects.

And so you know, you're seeing sort of revenue come in from one source and go out of the fiscal year for those projects.

So the street fund has gotten a lot of attention of late.

If you've paid attention to city council, um we've talked about street fund for a while.

And the use there is really to rehabilitate our roads and make sure that we keep our pavement condition index and our road quality at a high level.

Um more or less uh trying to keep that PCI or pavement condition index at uh level that will defer uh more significant maintenance.

So it's really important that we keep up with that.

Um it derives revenue from gas tax, from ride-away fees, and from vehicle registration fees.

The gas tax portion has gotten a lot of publicity of late, as you may also paid attention to in the recent elections.

And so the state gas tax rate has not changed.

Uh, the state of Oregon is 40 cents per gallon.

Washington County also charges one cent per gallon on the gas tax as well.

So there are two gas tax sources that we have and combined those with the vehicle registration uh charges are about 80% of the funding, the revenue for the street fund.

Um, the rest of the revenue comes from right-of-way fees for street lighting and other things, and then interest and other revenues.

Um, as you can see when we go to the next slide, we're in 259 uh for those following along.

Um the street fund has a structural deficit, but also the top part of this chart, um, we are seeing the revenues have stagnated and or um flatlined.

And so uh we are seeing gas tax revenues that have not increased uh year over year.

Um we are also seeing our right-of-way uh fees staying similar.

Um vehicle registration fees are same.

Um, so we're in it we're really not seeing a significant increase.

We're obviously also like projecting, as it says, a slight decrease in our overall revenue uh for the street fund.

So it limits our ability on the uh expenditure side to execute on significant projects.

So thinking about the larger road maintenance projects that need to occur, uh, we're limited to more of the crack ceiling and overlays.

Um, those kinds of things that come out, those things come out of our materials and services line.

Um so you will see that we're continuing to have activity in that area, but um, those are smaller scale treatments for roads, and we're not necessarily seeing um the funding adequate to provide for large-scale rehabilitation of the roads.

Um, one thing that I should also point out in the um as we look at a lot of these funds uh allocations, the um the areas for the uh transfers, um, so interfund transfers is what we use in sharing funds between uh various parts of the organization, the city organization.

So when the street fund and the employees who are funded there and the activities that are occurring, need to use ITS or our information technology, uh fleets, um, admin support from uh all of our internal services and our city attorneys, um, those are charges that are paid out there.

And so um we're seeing a change there as we we adjust the allocations in our internal service funds through a new methodology.

So I will maybe go on to the next slide, which I believe might be a pause for questions.

I don't see any names, but we'll maybe give it 10 seconds.

No problem.

Trying to move quickly without overwhelming.

So if there are things that I moved too fast on, please let me know.

Yeah, I think you're good to go forward.

Okay.

So we'll go to the next slide uh and start to work through our utility funds.

So the utility funds are uh paid by rate payers.

So essentially, as a resident of Beaverton, uh you are connected to water, sewer, storm drain, and are the costs are allocated based on the use in most cases and or the connection uh to the system.

And so um water fund has a monthly fixed fee, a connection point fee, and then also has consumption-based fees.

Um we've done some capital improvements and uh capital planning for water that's significant, and so the 10-year rate plan uh began at uh fiscal year 21.

So we're more or less about halfway through that uh plan.

And so you're seeing an increase in the allocation of uh rates or the increase in rates to uh meet the allocations needed and the expectation of um uh funding those projects.

Um those projects, some of them you know, we sh can be maybe a little bit excited that are coming to fruition very shortly, but um again, it's a 10-year plan, so our rates are built in, a rate model is built in for 10 years.

The sewer fund is um more of a fixed uh and consumption base, similar to the um the water fund, actually.

Um, so it has uh again the connection point charge and then uh cost for consumption as you um as you use the services, and we also have a split service in some ways a local service that the city charges or local charge, and then clean water services as the regional provider also charges a fee, and both of those come forward on our um combined bill.

Um storm drain rates are fixed monthly charge, and uh you know, this is more just you are connected, you have uh what we call an equivalent service unit, and in this case it's a one home, and so uh you're charged the fee, and that is a local and a regional one because uh clean water services also has the regional stormwater, so uh sewer and stormwater there involved.

And then um looking at the uh the cost of things, we've also got a rate program, a rate assistance program for uh for residents uh through the community action folks, and so there are methods for folks to look for uh rate assistance.

Um next slide.

So we're gonna dive in uh with a lot of these.

What we'll do is show you the rate uh mechanism, and then in the next slide, we'll talk about the funding.

Uh so the more about the projects and some of the activities that are being funded using rates.

So in this case, we'll start with water, and um, we've got kind of at the top here an example, uh, what I was describing before, fixed monthly rate of uh meter connection, uh, and then a consumption rate, and we charge that per CCF, which is um a cubic foot of water, which is equivalent to 748 gallons of water for those wanting a little cocktail party conversation.

Uh you can ask uh folks if they understand what a CCF is.

Um in this case, the average uh or or a rough estimate of eight units of water is being considered.

So you're looking at an increase of about 9%, a little over 9%, $7.30 in this example uh of rate impact for the increase in water rates.

And again, this is funding uh investments in the long-term health of the system and uh projects that are have been planned for this 10-year cycle of um uh development.

So hopefully that makes sense, and we can maybe move on to the fund.

Okay.

So the water fund page 41.

So again, we've got uh projects going on in this fund uh coming from the rates.

Um we're looking at in this case um an increase of uh about four million dollars um in the activity.

Um essentially looking at things like the completion of we hope we expect the completion of the uh Willamette water supply system and the Willamette water supply project, whichever of those you prefer, I suppose, they do actually mean different things, but they're the same uh organization and consortium that we're part of.

Uh we're a five percent um participant in that project.

Um the bottom part here, the we're seeing is an increase in in personnel services as we think about uh healthcare and and um you know cost of living increases for our staff and things like that.

Um the materials and services uh has gone up uh because of the allocation, the expected allocations for the operations of the Willamette water water supply system and the completion of the projects related to that this coming uh fiscal year.

Um the capital outlay uh depends from year to year.

So it's actually gone down, or we're projecting it to go down in this year.

Uh we're expecting fewer or have planned for fewer uh projects.

So the project mix for capital improvements in this fund typically comes from the joint water commission when we're uh part of another consortium of uh cities that uh collaborate on water uh infrastructure and being asked to um provide resources to the projects there uh for pipe replacements and then for other maintenance, you major maintenance needs.

So uh I think right now at least we're hoping that we have a lighter year in terms of pipe replacement and some of the other projects.

Um then what else do I want to point out here?

Um the transfers are uh going up slightly.

Uh they're there to cover again the uh water funds impacts uh or the the services they're consuming on the internal side for the city.

And so uh again, you know, looking at fleet HR, IT, um, you know, a lot of those kinds of systems and um and though the need for support.

Um just uh some highlights, I guess, in terms of projects that have been completed in the water fund, the aquifer storage and recovery well, ASR well number three, which is there to treat and store uh raw stormwater for the purple pipe system that was completed.

Uh, we're very excited.

We'll have some pictures later on about uh the camera booster pump station, uh, which will help us supply water to Cooper Mountain.

Um upcoming projects, as I mentioned, the Willamette water supply system projects will be completing, and uh that system will come online.

So we'll have a transition from the capital side to more of an operation side there, but we're excited to have that.

And then we're continuing to install the advanced metering infrastructure, uh, the smart meters at people's homes.

Um, and so that uh I think we're about halfway or so in that installation.

So I think we're seeing some good progress there as well.

I'm gonna move to the next slide.

Any questions on water?

Uh councilor Teeter.

Uh this isn't a question, this is more of a clarification, but not a clarification, just to add a detail that I think is important for uh budget committee members and people watching.

Uh, because I know that there are uh people feel that rate the rate increases that we are adding for the water fund.

Um the average uh increase that that a single family residents will feel is about nine percent this year.

But we have done the the five-year forecasting for this fund, and uh we do see that fund leveling off uh a couple years from now.

We just we have to be able to pay for the construction projects that the city has been uh completing for several years now, and we are nearing completion on those.

Uh and they do mean a lot for the community.

We just we need to fund them, and so uh we'll look forward to this rate leveling off as these projects come to a close.

I would just add that like there are abilities that we will have for seismic resilience or ongoing supply uh for being able to repair some of the system that we uh have in other areas by doing some of these projects.

We're we're unlocking uh additional water.

So there is a really good story to tell in terms of long-term benefit of completing these projects.

So I appreciate you bringing that up.

Thanks, Kevin.

Board member of Benish.

I had a quick question.

It was uh Beaver Tin's current water rates and planning freezes.

How do they compare with neighboring cities like Hillsborough, Tiger, and Qualiton?

Uh if there's any differences, can we explain that?

Um, I'm gonna probably look to some help from uh folks in the finance department, but I think um in terms of the the mix and the comp the comparison, it's it is a little apples to that uh to some other fruit in the sense that you know we're our partners in various projects with other with certain cities, but not always the same.

And so, like your investments are uh driving some of the uh the cost in terms of the recovery of uh those investments, so increasing rates for the period of time like we're talking about for the 10 years, we're uh invested in what the Willamette water supply, but that's uh with Hillsboro and uh Twelton Valley Water Division, the the department TBWD.

And so um, you know, there aren't the same mix of folks in those bigger projects necessarily.

Um, but we do that to make sure that we as our system have the redundancy and the supply needed to meet our needs.

So it's hard to necessarily compare um apples to apples, but let me see if Susan maybe has a better answer.

Sure, and we'll have more up-to-date information for our public hearing on June 16th.

Um, but currently um Beaverton ranks to be third or fourth, depending on who you might put in that mix.

Uh West Slope Water District, which is to our east, um, has higher consumption rates than Beaverton, and so does Twilight and Valley Water District.

Um Twalaton, Tiger, Hillsboro, they tend to have lower consumption rate, consumption rates.

Uh, but all cities, these cities also charge a fixed monthly charge.

So when you build that into the equation, Tiger actually has a much higher fixed monthly rate than Beaverton.

And so does the city of Forest Grove has a much higher fixed monthly rate.

So when you combine all the bills together, uh that's that's why we like to um do bill calculations so that we can account for those variations in the fixed monthly and the consumption rates.

Beaverton ranks about fourth with Tiger and Tualeton and Hillsboro.

We're we're about tied with Hillsborough, honestly.

But um Twalton Valley Water District and Tiger on a billing basis tend to have higher monthly bills.

But we'll be updating all these statistics for that rate hearing that we're preparing for on June 16th.

Okay, thank you.

Thanks for the question.

Uh I don't see any more, but I have one.

Dan, I I noticed in the water fund that um that we're going from about 46 to 47, or might be 47 or 48 FTEs.

Um and it looked like it amongst a couple things.

Can you help me understand why that fund needs an extra FTE right now?

Yeah, I think we've tried to realign some of the staffing resources that we had, but I uh understand that uh increasing the FTE headcount uh for the purple pipe system was uh something that was planned in the uh creation of that system and that we were eventually gonna get it to the point that would need uh staff support and oversight.

So I believe that that is, and I see Susan popped on, but uh I believe that's the increase in the headcount.

Is that correct, Susan?

I'm assuming.

Yes, it's for the water system of the purple pipe to um the reclaim stormwater project.

And just pushing a little on that, can you help me understand what that they will be doing that that we're not doing right now?

Because that system is already up and running, correct?

Yes, well, there is an entire water treatment plant that treats the water to DEQ standards, and so now that that is fully operational, the staff are um the workforce is needing to gear up for that.

Additionally, there's an aquifer storage and recovery well for the purple pipe system, so that also requires annual maintenance, and then all the pipes and pumps.

So this particular project in South Cooper Mountain for the Purple Pipe was phased in over a number of years.

And so fiscal 27 is when it's going to be fully operational with all those pipes and pumps and ASR and treatment facilities.

And so the water department is gearing their crews up to properly maintain that system.

So they're not having to maintain it right now.

Is that worth saying, or is it just anticipated extra work?

They they are current, yes, they are currently maintaining it.

But as you know, um, with workloads and staff capacity, the um staff can only um carry that capacity to a certain extent until you reach that threshold where you do have to staff up.

Thank you.

I don't see any other questions, Dan, if you want to continue on.

Okay, sounds good.

Um, so moving on to sewer rates.

Um, and again, we'll talk about the rates and then the system uh that it's funding.

Um we use the sewer rates example here of uh again kind of the fixed connection point uh and then uh we'll use a winter average, winter water average of uh eight units.

And to explain the winter water average or winter average, we do that based on where the water is going.

So think about in the summer, you more often will have irrigation outside of the home.

And so some of the uh water consumed is not actually going in the sewer or you know down a pipe, it is going out into the storm terrain and uh or potentially or into your lot, right?

I'm sure optimistically it's just getting soaked up by all those plants.

But uh reality, we we do that to make sure that we can we understand uh the consumption and the use.

So um it's November through April that we would look to you know, kind of measure that um that use.

Um and so it we use an equivalent dwelling unit system here for um charging, and so you see that per EDU uh a single family residence is one EDU, and um essentially our charge for that connection based on that EDU, and then uh the amount of consumption amount of use uh based on the flow through the system.

So um we again, as I mentioned earlier, have the combined billing aspect where uh for this and for the storm uh we will have a city uh local uh portion and then a regional portion that Clean Water Services uh is uh collecting, or that we are collecting on their behalf, I should say, um, and the funds the the maintenance of those two systems.

Um we're seeing an increase.

Um, and you know, you'll see the note at the bottom uh that the current year budget was too low.

Uh so in essence, we are looking at uh continuing a rate study to evaluate the appropriate rates here for uh sewer and for storm to right size those to make sure that we're able to fund the improvements that are needed to maintain those two systems.

So we can go to the next slide.

Okay, so um we're seeing here uh two new funds on a couple of lines, and we have created a uh new storm sorry, new sewer SDC fund that will be our next slide, which we will wait up for a second to go to.

But um, that is being done to better track um a lot of the uh capital projects and and the allocations that we have when it comes to uh construction and things like that, and to have them in a separate fund from an accounting perspective uh is cleaner and kind of a better practice.

And so uh we are creating that mechanism uh this budget year.

Um so you'll see in this and another fund where uh some of our revenues uh are going into this uh this new fund, and that will then be used to allocate for construction and things of that nature.

Um I mentioned we're continuing to evaluate rates, so um, that's something that may change or maybe recommended to change in the next budget cycle.

We're gonna plan on on working through the fiscal year with the rates as proposed, and then uh bringing that forward through the city council.

Um you're seeing personnel increases uh in personnel services with a little over six percent um or COLA step increases health insurance increases, all those normal things that are baked into that.

The materials and services is decreasing just slightly, and um that is typically representing changes in engineering services where um you're seeing uh need for uh those engineers to work on other things related, and so they're um being billed out, and then you've also got the uh reduction in the number of uh equipment or smaller equipment purchases that are needed, and so that may account for that 20 gigah000 or so, 23,000 change.

Uh the capital outlay is decreasing uh due to this new fund being created.

So uh you'll see the capital outlay, the you know, the revenue coming in on uh on the new fund and the outlay coming in on the new fund.

Uh so that that is the decrease there where you're seeing capital outlay reduce quite significantly.

Um it's also uh as some of our sewer rehab projects are winding down, you'll see that reflected.

Um the contingency is decreasing, um, and that is essentially uh due to having uh separate fund for the capital projects, and so it's it's related to that new fund as well.

So having talked about the new fund, if we like, we can go to the next slide and see the new fund.

Um this one is the sewer SDC fund.

Um in essence, you know, as a new fund, there's there's no comparable to last year.

Uh, but again, it's being set up for uh major capital improvement projects and being able to track and have uh easier oversight of those projects from a financial standpoint.

Um significant projects that we're expecting uh to come through.

We have um an I and I, so in flow and infiltration project um that we're working on, and a Tektronix lateral improvements project that we're working on in this next fiscal year.

So I and I is something you'll hear uh here, and then I think and on subsequent slide as well.

Um helps to make sure that we are not seeing any loss uh you know from intrusions like routes and and other things into pipes.

Uh we're not necessarily seeing uh things go through pipes and not get all the way there.

And so making sure that we address cracks and and potential for needing replacement of uh some of our lines, and so uh those are important projects for uh all of our uh utility funds.

I think I'm gonna say let's go to the next slide.

If there are uh we'll see if there are questions.

Any questions, budget committee?

Give it a uh member Kia Thanks, John.

Thanks, Dan, for the presentation.

I just wanted to confirm a couple things.

Um, so forgive my ignorance here.

Um when we say eight units um for both the water and sewer, what what is that actually equate to?

Is that are we saying that's like a monthly average of consumption for that household?

Or can you help me understand what that really is measuring or meaning?

Yeah, I think the the water side we're talking about CCF, so we're talking about one cubic foot, and so that's 748 gallons.

So each unit is that measure, and um Susan's gonna pop on and answer as well.

Right, yeah.

So we bill by um a hundred cubic feet, one unit, which is 748 gallons, and we use eight CCFs.

That um is sort of an industry practice in trying to measure bill impacts, and so water usage for a single family house, uh, which is largely our customer base, might use eight units in a month.

And so we just use the same equivalency for sewer.

That's just a way to uh do comparisons on a billing um you know, billing for sewer and um water, and a lot of other cities use the same unit, so it just helps us do apples to apples comparisons when we're comparing utility bills.

Sure, makes sense.

Um thank you.

Um my second question is you kind of mentioned about a rate study for the I believe the sewer fund.

And I'm curious um across all of the kind of rate pair funds.

When um when was the last rate study done for these and and when are they kind of due?

Like how how frequently do you all do the rate studies?

Leave that to Susan entirely.

Yeah, yes.

Thank you for the question.

Um actually for stormwater and sewer, to my knowledge, I don't believe the city of Beaverton has um done an external rate review.

So to my knowledge, this is the first time that this city has done that.

Um our goal was to complete that study um by now, but due to various uh staffing turnover, both internally here to the city and also the consultant, that study has been delayed uh by about three months.

And so, yes, this will be the first time that that I know of that the city has done uh that kind of review.

Uh it's sewer and storm are a little bit unique in that years ago there was a revenue share arrangement with clean water services that basically broke apart in 2020, and since that time, the cities and clean water services have been drifting apart and doing their own rates where clean water does the regional rate and then the local cities do their own local rate.

Um, and so it's really just been since 2008 or so that that this has been evolving.

And so we thought this would be a good time to hire a consultant to help us with those rates.

Yeah, makes sense.

Thank you.

Thank you.

I don't see any more questions, Dan.

Okay.

So this one is unlike the other two, uh, where it is just a fixed monthly uh per ESU equivalent service unit, which the equivalent service unit is equal to a residential home.

Um this one again though has that clean water services component.

So you have that local and the regional uh so there's a combined utility bill, and then again um this one is subject to that same uh rate study that we're looking to do.

So if we want to move to the next slide, we can talk a little bit more about what we're gonna fund.

Sorry, as I get blasted by sun here and did not plan this well.

Um the storm grade fund um is also getting a new fund, um, the same SDC fund that'll be on our next slide that we'll we'll talk about in a minute.

Um so similarly, you're gonna see the um removal of some of the revenue uh to fund and to or to track those capital projects, and then to um see some of the um expenditures also change as a result of those big uh aspects of the budget uh moving.

So um with this one, you know, the SDCs uh those are system development charges, those move with the new fund.

Uh so you're seeing those zeroed out.

Um we have other fees that start to help us gather revenue to do the uh the work here along with the rates and charges.

Um the miscellaneous revenues um are based on interest earnings and engineering services provided and paid for from other funds.

Um then as we go down to the expenditures, we are seeing an increase in uh some of the staff uh costs.

Um we're also seeing uh materials and services slightly down.

Um, and that is due to um sort of some changes in terms of the um expenses expenses for uh dumping sewer debris and some of the sort of more uh uh administrative side of the the house, uh just changing how we're doing some of the allocation of resources there.

Um the capital outlay is uh going down, or you know, so sorry, that one is changing up.

Um that is increasing due to um type rehab project.

Uh so we're looking at uh project on uh Cedar Mill in the watershed there.

Um improvements also to the process progress ridge, uh if I can speak, progress ridge treatment vault, and um expanding the decant facility at the public works facility yard.

So essentially the separation of uh some of the the solids uh and kind of letting those um marinate as it were uh from the system.

And so um that uh that accounts for a lot of the the change there, and again, we're seeing uh change in the interfund transfers.

Um we're transferring out a significant amounts.

Um and this goes to that new fund and uh related to capital projects and uh making sure that we're able to do some of the the bigger work in terms of the system maintenance and that sort of thing, and you're seeing the the contingency reducing as a result of all of that moving out as well.

So we can move to the next the new fund.

Well, this one isn't actually marked new.

I just realized so I apologize for that.

This is new.

Um, and so uh you're seeing the influx of some of that funding for these capital projects, and so the capital projects planned uh include improvements on Whitney Way and flood reduction in the vicinity of the uh Southwest South the Southwest 5th uh and Filbert.

Uh so we're planning some projects uh that we expect to take a few million of the the funds that are transferred.

So I'm gonna pause again on the next slide and see if there are questions on storm drains.

Any questions, folks.

Everyone wants I think you're good, Dan.

Keep going.

Okay, so the next slide, we're gonna transition from the utilities into the capital improvement program.

And capital improvements are uh investments in city infrastructure that are aimed at enhancing creating new facilities, uh like you know, bigger road construction uh or also repairs or enhancements to an existing assets.

So if we can go to the next slide, um we've been using for a few years now, the third year as it says on the slide.

But in essence, uh trying to mirror mirror the uh rubric of the council's priorities in the execution and prioritization, the ranking of capital improvement projects.

So thinking about how the direction we're given as staff and how do we execute the projects and how we prioritize projects that reflect those priorities.

So the eight scoring criteria here are the maintenance responsibility, health and safety, uh, partnership and coordination, economic vitality, climate impact, diversity, equity, and inclusion, um, the community engagement aspects, and livability and connectivity.

I just want to plug before I move on to the next slide.

There is a great website for our CIP.

Um, so if you uh want to go and search on the city's website by capital improvement program, um there is a map of the capital improvement project locations.

There are uh pages for each project.

You're also able to uh track those projects and sign up for uh information.

You can communicate directly with the project staff who are executing those uh projects, and they do take many years, so you may be in contact with those staff for quite a while.

But um, there are also uh opportunities to avail yourself when they have uh public input opportunities like open houses or other kinds of opportunities there.

So encourage folks in the community to uh pay attention if they're interested in in a capital project that's happening, uh they're curious what what is happening, uh, that is great resource page.

So the next slide, please.

The categories of funding for capital improvement pro the capital improvement program in those projects is pretty wide.

Um we use rates and charges so the uh previous uh funds, the utility funds can fund capital improvement projects in those related utilities.

Um we also um you know what we have to fund the the the use of those funds specifically for the improvements related to those utilities.

So there is some limit to the use of those funds uh from the utilities.

But because we are trying to build and maintain our system, there are often a lot of capital projects related to the utilities.

Um we also look to the gas tax and vehicle registration fees, so the street fund sources um and you know, uh looking at other means uh within the the street fund if at all possible.

So trying to make sure that we we can only use the street fund for improvements to the right-of-way and the streets are similar to the utilities, thinking about they have to be used for, you know, if you're gonna do a water project, you can use water fund, but you can't use water fund for um a street project, but you might be able to use and layer uh street funds with that because you might be cutting into the street and doing uh improvements there as well.

System development charges, that is a tool that we uh use uh in specific areas often, and sometimes there are citywide system development charges.

Um the water student storm sewer and transportation funds all kind of uh feed into those or can you have system development charges specific to those types of utilities as needed, thinking about if you're going to do one, we have a system development charge for transportation, for instance, that is specific and been recommended specific for the Cooper Mountain development.

And it's it's encompassing the projects that we expect to occur related to that development and making sure that we fund those uh improvements.

And so folks would pay into that, and then we would be able to build the improvements in that specific area.

So that's how those projects often are funded.

And then the uh Beaverton Urban Renewal or Urban Redevelopment Agency, uh Urban Renewal, tax and government financing and debt uh can be used to fund infrastructure projects that um uh work within the Bureau of the redevelopment agency boundary, but can uh help us to uh connect systems to improve the build buildability and uh the development uh potential for parcels and things like that.

And then finally uh legislative earmarks, uh that's always a great one where mayor and um Jocelyn Blake are able to go to DC and and uh shape the money tree and try to get uh funding for us for uh a lot of our more important projects.

So next slide, please.

Uh this is just an example of uh the idea the capital improvement projects take multiple years.

They are often uh more than five years, but we we certainly put a capital improvement project uh plan together, capital improvement plan of five years and kind of keep it rotating or moving forward year to year as we uh complete uh steps in those projects because they often take many steps, uh whether it's right-of-way acquisition or just the design and planning or the construction.

They often take many years.

And so we look to uh think about them and build out the project plans in many, many stages and have them visible to the public for the five-year cycle that they're on the plan and under construction.

Um then let me see the next slide, please.

The um significant projects that we've got going on right now and have for a while, uh the WIFIA program, which is 18 water-related projects that are funded.

Uh they're valued at 165 and a half million, um, almost half funded with a loan from the federal government.

Um we're in year seven of seven, so we're looking to wrap up the WIFIA projects and uh they've helped us to build out our water system to uh meet some of our needs in terms of preparing for um our future water needs as a community.

Um that's also included the non-potable purple pipe that I mentioned before and that uh the ASR and then the North Transmission Line Intertide, the NTLI project.

We've completed segment one and we're moving on to segment two in this calendar year.

Um, so we should be moving forward with uh finishing up all of those projects uh very shortly.

The Willamette water supply program, uh again, it's kind of part of the this massive uh straw that is drawing from the Wallamet River and giving us some water uh supply redundancy.

We are a five percent partner uh with other partners, uh Hillsborough uh TBWD are the major partners in that in terms of the the percentage of uh the construction and costs, but we will benefit from having that supply and some of the redundancy that it will give us in our system.

Um and then the downtown loop, um, which is definitely underway, well underway, I'm told.

Um, and we are working on the design and uh executing a a uh demonstration project to build out uh hall between first and third uh as a model for what that uh project is going to look like.

And that's meant to improve walkability, connectivity between or across uh the canyon and farmington intersections and do some improvements to uh make a much more walkable and safe experience for non-motorized uh users in the downtown area.

Uh Millican Way, where we're looking to uh straighten the the section between Watson and Hall, and then uh the Cooper Mountain reservoir number three, which we're doing property acquisition uh right now for that reservoir.

So next slide, please.

Uh some pictures, because who doesn't love a good picture?

Um NTLI, the North Transmission Line Intertie project, you can see uh just how big the uh the pipe is, and so you know, think about how much water it will convey.

Um doing a lot of work at night to make sure that we minimize impact on uh community and uh our neighbors, but uh big project that will take uh several stages and steps and many years to complete.

So next slide.

So we've got on the left here um a picture of uh some of our water infrastructure being built.

This is um our south transmission line.

Uh there's a T connection being created here, and again, just a picture for scale of kind of how big we're talking about in terms of some of this construction being done and how much water we're going to be able to move around.

And then on the right, uh those blue um pipes are the part of the internal workings of the camera booster pump station, which is the brand new one that will supply or help us supply water up to the Cooper Mountain area.

Next slide.

So uh just a quick uh list really, and I'm not gonna touch on too much of this because I've talked about some of these projects already, uh, but completed uh some projects on the left here, the Sterling uh part pump station, the ASR well 3A, the camera booster pump station, the Lisa Lane Waterline replacement, the NTLI segment one, Walker Road waterline, and the Canyon Road Ped Safety Project.

Uh those are just an example of uh what we see a fair amount of in right now in terms of water uh related projects, again, with you related, um trying to move through that funding stream, and then uh essentially replacement of some of the aging system that we're dealing with.

And so you'll see on the right uh projects that are involved in replacement and rehabilitation of water and sewer lines that I and I process again.

So looking to maintain the systems we have as well as build on new systems and increase connectivity.

So we can move on.

So just uh real quick um getting to the end here.

Um the significant updates uh for the capital improvement projects uh and the program.

We are um looking to keep the funding for uh the loop project that we receive from the federal government.

We haven't yet to be able to access due to some changes uh that the feds have had in our uh uh grant terms and conditions.

Um I think we are working through that.

Um so we're looking to uh really be able to get access to that money and do more of the broader design of the loop project.

Um we're uh have ongoing work on the Milk and Way extension again, we're looking to design and to begin construction, um updating our water master plan, so thinking about what our future is going to look like, and uh I think looking to shift towards how we're gonna maintain the system that we're building out and and what our needs are going to be uh as a community.

And then uh looking for land acquisition, um you know, installing, as I mentioned before, uh about halfway through the AMI, the advanced medium infrastructure uh smart meters and then waterline replacements and sewer rehab projects uh continue to be in big needs.

So next slide.

So on the left, uh just a sample of a couple of things here.

On the left, we've got the design uh where we're looking at the two intersections that are well, I guess two and a half intersections of the uh proposed loop demonstration project, um, and you know, just a model here of like where we are.

We're designing and getting ready to do the construction.

Uh ODOT is uh is helping us execute this project, and so we're seeing um opportunity to kind of move that forward again as a model for the rest of the loop project, um, which should enhance um you know safety for a lot of folks in our community and and hopefully enhance the use of downtown by a lot of folks who maybe aren't able to get around as easily.

Then on the right, uh we've recently been able to change some of our um our interpretations of uh uh being able to do murals on the ground and on on roads.

And so this is the first one we were able to complete.

It's been uh I think it was a completed a couple weeks ago, sometime last month, um, near a Hidean or Heidian uh elementary.

And so um painted by uh folks in the community, um, not exactly sure in this picture, uh, but it's beautiful.

And so just an example of uh being able to shift um interpretation, but also kind of execute a community project that add some beauty in the neighborhoods.

And I think that is my last slide.

Let's see.

What questions do we have to do Councilor Teeter?

I'll just give a little bit of context again.

Uh, thank you, Dan, for the deep dive into a lot of this.

Um I think when people see construction and capital improvement projects happening out in the community.

Uh they often feel like the work that we're doing is road construction.

And if you noticed a few slides ago, that is not primarily the case.

Uh those are our major water infrastructure projects and and sewer projects we've been building out.

Um we would love to do some more road improvement projects, but like we talked about just a little bit ago, the street fund and well, talk more about it, but we've got some financial difficulties we're working through with some of that.

Um, but the water infrastructure project, sewer construction projects, those have been going forward really well.

And staff have done a really good job.

So thank you, Dan.

Wish I could take credit, but thank you, and thanks to the staff that do.

Not seeing any additional questions, Dan.

So it looks like uh says next assistant city manager reviewed next steps for the budget committee.

I think that's actually gonna be Susan, our uh someone in the staff next steps.

Um next slide, please.

Okay, so now we get into the meat of the meeting with the budget committee official duties.

So this slide is just a reminder to the budget committee that you've accomplished uh some key milestones.

You have reviewed the proposed budget document for fiscal year 2627.

Um so we will get to a formal public hearing um here in a minute.

And next, um, you'll also have the opportunity to deliberate about the budget uh with your other committee members.

And then just as a reminder, that the budget committee will take a vote to approve the expenditure budget with all funds and balance, and you can amend the budget.

And um yesterday I did send a list of amendments um that staff are proposing, and of course, budget committee members may also offer amendments.

And another important task of the budget committee is to specify the property tax rate subject to the measure five permanent rate limitations.

And um, that is in the script that we emailed to you.

Uh next slide, please.

So, as I mentioned, um some committee actions next steps here, and we have a script in the slides to guide you through it.

Um, part of the budget committee responsibilities is to conduct a hearing for state shared revenues, and we have um some information on that coming.

And then you'll conduct a formal public hearing for the proposed budget.

And in the script, we have uh some language to move to approve the budget.

That does not have to be Chair Duggar, that can be any budget committee member can make that motion and then also second that motion.

And after that motion is when the committee can ask questions and have discussion.

Um, and also then consider amendments and vote on amendments.

And then in the end, you will vote on a motion to approve the budget as amended.

Uh so next slide, please.

So if the chair would please um open a public hearing for state shared revenue.

Sure.

I will now open a public hearing specifically for public comments on the proposed uses of state shared revenue.

Is there a I assume this is the staff presentation?

Yes, we have one slide, which is the next one, please.

So within the fiscal 27 proposed budget, uh the city is proposing to use state shared revenues in the city's general fund.

We expect to receive approximately 2.5 million in um state liquor tax, approximately 48,000 in state cigarette tax, and about 150,000 in state marijuana tax.

So those taxes go into the city's general fund as a revenue, and then they are appropriated um through this action tonight with the budget committee throughout the entire general fund.

We do not earmark where those state shared revenues go, they just go into the general balancing of the general fund.

Uh another important state shared revenue is the state gas tax.

We anticipate receiving roughly $8 million in state gas tax.

That tax goes into our street fund, and as Dan covered this evening to cover the operations and maintenance of the city's transportation network.

And the reason why Beaverton is eligible to receive state shared revenue is because we need to provide four of the following services that are mentioned.

So we do provide police and street construction and maintenance and street lighting.

We also provide sanitary sewers and storm sewers, and we also provide planning and zoning.

So we are eligible to receive these state shared revenues.

Is that is that all you have, Susan?

That concludes my presentation.

Thank you.

Thank you.

As I previously mentioned, if you've joined the meeting virtually, please follow the instructions on the agenda if you wish to see wish to speak, city recorder.

Is there anyone wishing to testify on state shared revenue?

No, we don't have anyone in person or online to testify on state shared revenues.

Uh cool.

Well, I will now close the public hearing on the proposed use of state shared revenue as a continuation of the public hearing on the proposed city of Beaverton uh fiscal year 26 to 27 budget.

Is there anyone wishing to testify on the proposed budget?

No, there is no one in person.

I'm sorry.

Sorry, go ahead.

There's no one in person or online to testify for this hearing.

Thank you.

Uh there appears to be no member of the public who wishes to comment on this matter tonight.

Uh scroll and down.

Are there any questions or comments on the proposed budget or the proposed modifications from the budget committee?

Do we see any of those?

Yeah, and we give everyone a second.

Yeah, can you advance to the next slide, please?

So, Chair, in your script, there should be um some specific language about the ad valorium tax and the general obligation debt for the motion for the actual motion.

Um I see the amendments.

Uh is it for the motion?

Is that what you're talking about?

Uh I'm just yeah, I'm reminding myself.

I think I I see it.

It says member one motion that it mentions to set the ad valorem tax rate for operations.

That sort of thing.

Is that what you're talking about?

Yeah.

I guess I think our city attorney has the amendments first.

My apologies.

That's okay.

Well, we'll come back to that.

Counselor Hussan.

Yeah, good evening, everybody.

I just wanted to share a couple comments for the record.

Uh, first and foremost, thank you for your flexibility.

A couple months ago, I had let staff know that last week was the week of ETH, our religious holiday, which is why I was not able to join you all.

I'm doing really well on the boundary setting.

And so I watched you all on 1.5 and 2x speed to be as caught up as I could, and I appreciate the budget committee members and city councillor questions.

Um I wanted to uplift most of my questions were sent in, so I'm not gonna re-ask those questions for the record, um, but those are available online, and I'm very thankful to staff to getting back to us so quickly.

And I think just a general comment that I heard listening to you all sometimes at one point X 1.5x speed and sometimes at 2x speed was the question on the general services fee, and I just very you know generally want to share about the council continues to grapple with the reality of our fiscal situation, continue to have conversations around required services, core services, and how we can better address those issues.

And so I'm really thankful for how far we've come.

I'm really thankful for how all this is going, and I just wanna shout out staff um and all of you for your diligent questions and participation in this process thank you, Counselor Huston.

Anyone else?

Counselor Hartmeyer Prigg.

Thank you, Chair.

Uh oh wait, never mind.

No, I don't have a initial question.

I was gonna make the motion, but I realize there's more to the script first.

Uh I think we're ready for the motion, actually.

If you want, I think because then we close the public hearing first.

Oh, do I have to do that?

It's it's kind of backwards.

Let me see.

Where am I?

Ah, it's under amendment package.

Okay, I will now close the public hearing on the proposed city of Everton fiscal year 2026 to 27 budget in addition to the proposed fiscal 26-27 budget.

Uh amendment package one contains seven modifications to the budget.

Uh, to simplify the do I do the emotions right now for the amendment?

Like this is combined.

Yeah, we're gonna start with the amendment package.

We don't have to propose the budget before we amend it.

Here, Deggar, you can do it either way.

And so we thought it would be prudent to do the amendments first and then do the um amended budget for adoption.

Okay.

Yeah, I just I've never seen it that way.

Okay, let me read this again.

I will now close the public hearing on the proposed city of Beaverton fiscal year 26 to 27 budget, in addition to the proposed 26 to 27 budget, amendment package one contains seven modifications to the budget to simplify the process.

I propose that the committee first address the modifications to the budget.

Uh amendment package one contains seven modifications to the budget.

Is there a motion to approve amendment package one to the proposed budget for fiscal 26 to 27?

Yes, chair.

I move to approve amendment package number one to the proposed fiscal year 2026 to 27 budget.

Thank you, counselor.

Do we have a second?

Second.

Thank you, Mayor.

Uh it's been approved by member Hartmeyer Prig and seconded by member Beatty to approve amendment package one to the proposed budget.

Is there any discussion regarding this amendment package?

Just put your name in the chat if so.

I've got Kevin.

Uh this isn't the question, but for anybody watching wondering why we're amending a budget already.

Uh these amendments are more technical and clerical in detail.

Uh so there's nothing that substantially substantially changes uh what we've talked about the past couple weeks.

So this is just making sure we've got all our numbers and words on the right spot.

Thanks, Councilor Teeter, for that clarification.

That is a good point.

Uh I'm not saying any other names.

Uh recorder, we are ready for a vote on the motion to approve amendment package one to the proposed fiscal 26 to 27 year budget.

Would you please call the roll?

Dougher.

Yes.

Yes.

Hassan.

Yes.

Kimmy.

Yes.

Teeter.

Yes.

Tivnon.

Sorry.

Tivnon had to step away.

Had to step away.

Okay.

All markers absent.

Thank you.

Beatty.

Yes.

Benett.

Yes.

Langford.

Yes.

Shaw.

Yes.

Sundberg.

Yes.

We have 10 yes, zero no, four absent.

Thank you, recorder.

Um, do we have other amendments?

Uh counselor Husson.

Yeah, I wouldn't call this a formal amendment, but um Susan, is it possible to show the guiding principles document, or am I gonna mess things up too much for us?

Or whoever's record short sharing the screen.

Right.

I believe um the city recorder has it if they want to stop sharing and start sharing the word document, or I could I'll go ahead and pull it up here in a second.

If that's okay, thank you so much.

I should have I think um emailed you instead of Susan.

Well, that's okay.

We know we can ask.

Yes, we coordinated.

It just the computers sometimes are a little slow.

Okay.

Um, before you start, um Susan, is I just want to make sure we do this in the appropriate spot because it you know, this is like a state thing, so like is this the appropriate spot, or does it happen where where should we do this?

Yeah, I I think this is fine.

And then once the budget committee talks about the uh budget principles, we can go back to the main motion um to move to approve the budget as amended and and with the tax levy.

Okay, yeah.

So go ahead, counselor Helsinki.

Um so for budget committee members who might be new, and then for our city council, I'm gonna go back in the way back machine, which was 2023, I think.

But somebody might it might be 2022, but I think it was 2023 when we had acknowledged that we were gonna have this, you know, sort of what we would call structural deficit.

And so um uh counselor Duggar, Mayor Beatty, and I sat on a fiscal sustainability subcommittee to start working through really understanding like what are our budget issues, how are we gonna get there?

And I have a really lovely memory of the first copy of the budget guiding principles, which was the PDF that Susan had shared before.

And uh initial glance, if you look at one of the guiding principles, um, number two, it reads diversity, equity, inclusion, and climate sustainability.

And that budget, that cycle happened when I was traveling and doing some family stuff, and so I remember asking staff to like kind of get some climate sustainability action in there, um, some language in there.

And so what I think happened was it became diversity, equity, inclusion, and climate sustainability.

And the principle is critical, but I thought this would be a good time for us to um as a council body to weigh in on these general principles because these are budget guiding principles that staff put together on the feedback of the fiscal sustainability subcommittee.

So I'm not uh looking to make these amendments tonight because I think these are some policy decisions that the counselor should weigh on.

At least that's the feedback I've gotten from staff, but I did want to share them with budget committee members in particular to see if you had any thoughts that we should be taking into account as we look to potentially amend these at our future budget committee meeting.

And I do want to uh Chair Duggar had said we could give you a little bit of time to just kind of review and see if you have any thoughts.

I will be very candid with you.

I kind of came up with these on the fly yesterday.

I'm not a uh fancy writer, although people might say that I might be, but I just thought it was important for us to start to show our values in the principles.

Um these are not these are really just guiding principles for staff, and I appreciate uh staff helping weigh in on some of this a little bit.

We kind of did this in 24 hours, and so again, to clarify, I don't believe this is an amendment I'm looking to make tonight.

It's something I'm looking to amend for the council to discuss, but I am very open, particularly to budget committee community members who may have thoughts on these particular principles or any other principles that you want to uh make sure that we consider.

Thank you.

Looks like uh counselor Hartmeyer Prigg is up.

Uh yeah, I think I just want to go back to Chair Duggar's question.

Like I I think we I want a point of order this, but just like not because I don't think we shouldn't have the conversation, but I wonder if we need to finish the budget procedure and then like have a discussion right.

Um because we are like in the middle of the business of trying to do those budget amendments, and so without an a formal motion of an amendment, I think we might need to do this after that.

But I haven't like checked my Roberts rules recently.

An attorney can can one of the attorneys weigh in.

Yeah, um I I do believe Councillor Hartmeyer Prigg is correct that um the discussion should be within the scope of um any particular amendments made to the budget, and then at the end before the meeting is closed.

If someone wants to raise some additional business, um that would seem to be the appropriate time to do it.

Okay.

So we'll get back to that, Councilor Hosen.

And that actually gives us good because there might be internal processors like me who like to think about this on the community members.

So community members be thinking about those questions uh that counselor Hussam proposed.

Um so let me see where we are on the agenda then.

Um so we've approved amendment package one.

Uh do we have any other amendments at this time for the budget?

And I'll give everyone a second to think about that and get your name in the chat.

We need the Jeopardy music to play.

I'm not seeing any.

So uh oh, Councillor Hartmeyer Prigg, just under the uh not an amendment.

I understand.

You're gonna make the motion.

Go ahead.

I would love to.

I would move that we approve the proposed city of Beaverton fiscal year 26 to 27 budget as amended to set the ad velarum tax rate for operations at $4.6180.

I don't know if I said that correctly.

Or 1,000 of assessed valuation, and to set the property tax levy for general obligation debt at $2,500,000.

Do I have a second second?

It has been moved by member Hartmeyer Prigg and seconded by Member Bennett to approve the proposed City of Beverton fiscal year 26 to 27 budget is amended to set the ad valorum tax rate for operations at $4.61 to 80.

I don't know, uh, per 1,000 of assessed valuation and to set the property tax levy for general obligation debt at 2,500,000.

Uh any discussion.

Uh, as a reminder, if you have questions or comments, uh please put your name in the chat so I can call on you.

And the first will be Mayor Beatty.

I just I I want to say that I opened up the budget uh committee meeting with a reminder that um this budget was written uh using the council's uh priorities, and so when we watch other cities like say Portland, there's a lot of amendments that happen because they're responding to one elected official's writing of the budget, so they're trying to get stuff in there.

Now I've thought a lot about amendments to this budget that we could make this evening because we're up against such a steep fiscal clip, and this is the fifth year of budgets and the 14th time I've done the budget, but definitely one of the hardest.

Um I think there is more cutting we need to do by passing um a services fee.

We are guaranteeing that we have a couple years of operations under this.

We you can watch past meetings where we've discussed this quite a bit.

We're gonna have another meeting in two weeks about it.

Um, but I think that there is some the trimming that we need to do still to kind of keep up with this.

So I don't have any amendments tonight.

Um, if you look at the questions that were posed, three of the pages were mine.

The way that I asked them was more about how we're structurally operating.

And if we go back to how the old form of government operated, there was a lot of combined departments that work together and shared admin, and then when we went to a city manager form of government, a lot of those positions separated out.

And so I do think there's some worthwhile of us looking as the council body at the structure of the city is the staff where they are and working with our incoming city manager or interim city manager on some changes in the midterm budget.

But for this budget tonight, I plan to vote yes.

We've had many conversations about this absolutely terrible place that we find ourselves in.

And I think measure five and fifty.

And if you go back and watch even some of our earlier meetings where we talked about the structural constraint that the state is putting on top of us, and I seven of the eight largest cities in Oregon are in the same structural issue that we are.

The only one that is not is the city of Hillsboro.

Thank you, Mayor.

Member Kia.

Thank you, John.

Um I I'm heartened to hear um Mayor Beattie's comments.

I think um I'm really impressed with what the the city has put together for fiscal year 26-27 uh as a proposed budget.

I'm impressed with our council members.

I think it's an incredibly difficult job to balance all of the needs.

Um, and I think in the first meeting, I I am definitely a firm believer in critical review before asking for additional resources.

And I think that was voiced pretty clearly.

My concern about a general fee is is that where does it end, right?

At what point does that hit a ceiling and how do we ensure um long-term sustainability and affordability for our residents?

Um, I do still plan to vote yes tonight.

I recognize the moment that we're in, but I do want to be on the record, and I am like I said, I'm heartened to hear the mayor say that as well that the work isn't done, and that um, you know, through a real hard assessment of core services and and putting aside the nice to have that I think we can get the city of Beaverton on a better path forward and and hopefully our state can come forward with some sort of a plan for um or solution to five and fifty, because that is the ultimate problem, and it's not unique to the city of Beaverton.

And what I worry about as a voter and resident and taxpayer is that each jurisdiction that I reside in is gonna have to do their own patchwork denim approach to fixing this.

And so that problem then compounds on us as ratepayers and residents.

Um, and what I'd like to see is a uniform solution from the state.

And so I'm sure that the city of Beaverton, like other jurisdictions is putting that pressure on for a conversation at that level.

So I I support your guys' effort.

Um, I applaud the work that's done here for the upcoming fiscal year, and uh really appreciate everyone's time and dialogue.

Thank you.

Thank you.

Um Councillor Tivnon.

Thank you.

Committee member Kia, that was very well said.

And I I think that we are we're meeting the moment that we're in right now.

But to the mayor's point, this is it's gonna be a completely different can of worms the next time we circle back around to this because we've got some certainties and some unknowns that we just don't really have a clear picture of what happens after the next budget cycle.

But for this one, um it feels measured, it feels thoughtful, it feels like there was considerable attention to balancing the scales across departments in ways that felt um just very intentional.

And in light of everything that we have going on in the city and all of those capital projects that were mentioned, we're not just keeping the lights on.

This is a smart budget for the moment that we're in that does not make it easy.

I think that's reflective in probably the the energy level of the committees that I've been a part of since I've joined this council back in 2021.

We've had tough budget conversations every single one of those years.

Um, and I feel like the staff has been um listening to council very carefully all along the way, which is why I haven't had any comments or questions because we talk about the budget all the time all throughout the year.

Um, so hearing from the budget committee members, the the public members that are not on council and what your thoughts are on and impressions of this um weighs heavily on me.

And I'm I'm happy to hear um feedback like that, that this feels like the work was done to get us to where we are, and and that this feels this feels right for the moment that we're in.

So I will be voting yes tonight.

Thank you, counselor, counselor Hussen.

Yeah, I'll start with that.

I will be voting yes on this budget for everyone who might be waiting to find out.

Um I want to take a moment and just thank staff.

Uh, this is I don't know what round for me, but in the past, this has always been really hard, and there are a lot of hard decisions that are being made in this budget, and it is particularly hard on you all.

I don't know that I've ever seen so many staff in the attendees room or uh just attending this meeting.

And so I know how it must feel very heavy that this is happening in a very public way, and um that's that's heavy, so I want to honor that.

Um, I I do want to echo what my colleagues have said.

I don't think that this is going to be enough.

And so as I looked through the budget and was like, where can I take my scissors and cut?

I believed and always have believed that staff is doing everything they can.

And so to try to bring in some like amendment, which I have potentially done in the past, um, did not seem like the right way to go this time around, especially given how much more we've been giving feedback to staff, talking about the budget, having more of these public conversations.

So committee member, it was it was uh your words, and I think um committee member Shah actually wrote them down, what you guys were saying in the in the meetings.

Um because it's not lost on me that we are passing on these fees and these these the broken system is is now you know being put on us as counselors and you as budget committee members, and then we are now saying, okay, and as the affordability crisis increases, please also we need you to cover these other things.

And so it is not lost on me how hard that this this budget has been, how hard this moment is, and how much I want to maybe find some way to make a cut that feels like we're doing something but isn't addressing the entire thing.

So I hope that landed correctly for people that this is amazing work from staff and from everybody, and that I am voting yes, and I do think this council is gonna have to continue to figure out how we are really addressing this because I I think we've been kicking the can a little bit, and I think we're getting better at kicking the can less, but I think we're really gonna have to figure it out because 27 actually looks scarier when I think of the graphs and what I've seen.

So I'm voting yes, I'm excited to vote yes, and I am very concerned that we still have a lot of work to do.

So thank you.

Thank you, Councilor.

Counselor Kimmy.

Um, I'm gonna start by saying thank you to intern city manager and all the finance and everyone at the city uh staff and everyone who works for the city um for years that is I've been on a council.

The budget has been the issue.

There's so constant reductions and um trying to move the people around, numbers around, trying to buy one more day at the library, one more person, one less person.

It's very complicated.

And as a city council uh member, I'm I'm proud to be part of um council who's dedicated and trying to make this right.

Um even though I'm I'm gonna be voting yes, of course.

Um voting yes, I know uh the next year would be very tough.

Um people always talk about asking tough questions, but we we really don't ask tough questions because we are afraid of the answers.

And back of a mind, we kind of know the answer, but we're I don't want to talk about it until the time comes.

But um I just want to thank all the um committee members for spending their time reviewing all this huge document in a binder.

Um and there's more coming.

Um, but as far as right now, I think it's the right thing for us to do.

But I want to um I'm fully going in eyes wide open for next year's budget.

And as everybody says, unless the thing fixes it, there's no way to come out of it.

And by reducing, we are almost to the bone.

So I want to ask the staff um and also counselors, that we have to get creative.

We cannot operate as how we have operated so far.

So choose has moved, things have changed, and we have to be creative with our structure, how we align our priorities.

And um, that's all I have to say today.

Thank you so much for your time and efforts.

Councillor Kimmelie, Counselor Kimmy uh Julie.

Thank you, Chair.

Um, as a community member and a returning member of the budget committee, I just want to say thank you again to staff.

Um it I had many questions, and they um every one of them were considered with very careful um input and data to back it up.

So thank you so much for that.

Um I know I shared many emails, and I really appreciate you um just considering all of that as we go.

Um very thankful.

I want to appreciate this this entire body for the support of nature.

Um, I've been part of different committees for a few years now, and I can feel a shift.

Um it's very you can feel it in the way that folks are interacting with one another, the way the conversations are going, it does feel very supportive.

So thank you for that.

And it's really um clear that we have the right folks really leading the way in our our um city.

And I'm I'm as a community member um and as a mom, I'm very thankful for the the way that we're going forward in our community.

Um I am voting yes.

Um I just wanna go on record and say that um a lot of my questions came around um the downstream impacts on our subsidy programs where we have low-income households that rely on our coverage for utility costs, um, especially during emergencies.

And so just making sure that as we look to heal the whole in our community, that we are thinking about all of those impacts.

I know that we are, um, and I I echo what Key was saying around making sure that as we think about um the consolidation factors, and thank you to Mayor for highlighting that.

How can we best serve um within the the dollars that we have and create those consolidation factors so that we are making sure that we're uplifting those who cannot advocate for themselves and or are needing in need of additional resources wherever they may be found.

So thank you again for the the partnership, um, the clarity and the the beautiful storytelling as well.

Um I really resonated with that story around the trees and the roots, and I'm very appreciative again of our leadership and how we're driving this forward.

Thank you.

Thanks, Julie.

Uh Counselor Teeter.

Thank you.

I will be voting yes.

Um there's a lot of really, really strong work put into this budget and some really difficult cuts and reductions that we've had to make as well to some really uh valuable and meaningful programs that the community really cares about too.

Um I do want to emphasize for the community that feels the rate increases we've been looking at and uh just the the revenue adjustments we're trying to make just to make sure we can find some core city services.

I do wanna encourage you all that we have made over $9 million in and cuts annual reductions to our general fund over previous years and another 2.7 this year.

So around uh around $13 million total.

Um to $13 million total of reductions to our general fund over the past several years.

Uh we are continuing to look look at our general funds specifically to make sure we can provide the services people depend on most.

I really appreciate uh uh committee member Langford's comments there about their low income service programs.

Um really good work that the city does.

And if we don't fund it, the services people depend on in our community really suffer.

So we're trying to really walk a fine line here where we need to keep funding these programs and we need to keep the affordability uh rates in mind too.

So thank you all for your work on this budget, and I will be voting yes.

Counselor Teeter, uh member Venish.

Uh I would like to thank uh the committee and everybody, including the everybody working in the city.

This is my first time, and uh it gave me a clear understanding of how the city functions.

Well, we are looking at really tough times.

I understand that, and we're really hoping that the state and to the to somewhat levels, the federal level as well.

We do end up getting more funding in the future.

So, you know, our hands are not tight and are not meant to take tough decisions.

Regardless, we are uh I I plan on saying yes to the budget and uh I thank everyone again.

Thank you.

Thank you.

Without saying any more names, I'll just quickly add uh thank you to staff and leadership for putting this extremely difficult budget together.

Uh also thank you to the budget commit committee members for spending time away from your families and and dinner and all that sort of stuff to do the work.

This is uh my eighth.

Um I did this for years before city council.

And in my memory, I don't think this has ever been better.

Uh the thoughtful questions submitted in advance uh were perhaps more comprehensive than I've ever seen as well.

Uh you did the work.

So I uh thank you.

I hope you are as proud of this as I am.

Um the League of Cities says that 90 90% of Oregon cities are facing strength structural bankruptcy in the next 10 years.

90, 90.

Um that is weighing heavily on my mind as we as we make these decisions.

Um inflation is also hitting families incredibly hard.

I just completed a campaign where that was probably the number one thing we heard on the doors.

Uh, but it's also hitting our city hard, as you all see in the numbers, uh, unsustainably hard.

And it has been for years in a row.

So I will be voting yes.

I am uncomfortable spending reserves for ongoing needs.

So there'll be I'll be bringing up some more things over the next couple weeks to begin those discussions thoughtfully.

I'll be honest, like at the elected level, it's it's pretty hard to know some of the operational knowledge to make the kind of surgical cuts that would be most effective and least harmful to our community and the staff.

But those conversations absolutely need to happen.

And we need to continue to show Beaverton residents that we're doing everything in our power to become more efficient, uh leaner structurally more adept uh for tomorrow so that we don't continue to face this conversation every year.

Um I think that's all I had.

So not seeing any other names.

Um City Recorder, will you call the roll?

I think we're ready for a vote.

Uh let me read the script.

Recorder, we are ready for a vote on the motion to approve the proposed fiscal 26 to 27 budget as amended and set the ad valorum tax rate and set the property tax levy for general obligation debt.

Will you please call the roll?

Councillor Duggar.

Yes.

Currently or prigg.

Yes.

Hassan.

Yes.

Kimmy.

Yes.

Teeter.

Yes.

Tivnon.

Yes.

Baby.

Yes.

Bennett.

Yes.

Langford.

Yes.

Shaw.

Yes.

Sundberg.

Yes.

11 yes, zero no.

Um three absent.

Thanks, recorder.

Uh the proposed city of Beaverton budget for fiscal 26 to 27 as amended and approved by this committee will be forwarded to the city council for a public hearing on June 16th.

Uh, before I um, we have completed tonight's agenda, but before I adjourn us, I wanted to turn it back over briefly to Councilor Hudson.

Um, and if anyone had any comments on those budget, particularly community members for Councillor Huston.

We can pause for a moment.

Uh Counselor, did you have anything else to add before we we give the community members a moment?

This is the problem when you're at the end, because you're between people and the rest of their lives.

So if there's anything you would like to share, please do so.

I'm also happy to take feedback in a different fashion.

But please.

Yeah, please.

Uh if you don't have comments tonight, at least uh if you would be as so kind as to drop an email to the city council, I think that would be super helpful as well.

But it looks like we at least member Kia.

You have something.

Yeah, I'm just I'm curious.

Um, I know some jurisdictions have had to change language around diversity, equity, and inclusion to be sure that um they can still qualify for federal grants under this administration.

So I just want to make sure that that's considered around the the principles.

Um I am very much 100% all for the language, but I I realize that the tap dancing that jurisdictions are needing to do at this point in time to be sure they can maintain this those federal funds.

So I just think to give name to that.

And then around the human rights section, we talk about um I and the screen isn't show the language, the exact wording, but um around uh something about uh uh all life matters, and I just want to be really thoughtful in our wording that we're wording it in a manner that doesn't imply necessarily a political stance on um certain topics.

I just want to make sure it's worded in it and in a thoughtful manner.

So just putting that out there.

Otherwise, I think they're wonderful.

Thank you.

And if you have suggestions, I would I would encourage you to email them over for language.

I think that would be super helpful.

Um Susan has been kind enough to also remind us that you can also email those uh questions or comments about those principles if you have them uh over to staff.

So you can just hit reply on those emails that she sent.

I think I think we're good then for now.

So with that, I will adjourn the meeting.

Uh the meet the we are done.

Thank you all.

Good night.

Peace.