I will come to order this meeting of the Bethlehem City Council Finance Committee.

I am Grace Cramsey Smith, Chair of Finance Committee.

The other committee members are Hilary Kuytek and Rachel Leon.

The clerk will please call the roll.

Ms.

Cramcy Smith.

Present.

Ms.

Quietek.

Present.

And Ms.

Leon.

Present.

There are two agenda items for tonight's meeting.

The first agenda item is a presentation on the 2024 city audit.

The second agenda item is to review a proposed budget transfer.

YouTube reminder if you started streaming this meeting after 6 p.m., please make sure to scroll ahead so that the YouTube stream is current rather than a recording of an earlier portion of the meeting.

To the left, to the middle.

Anyone from the public to the right?

Okay, we'll go with the first agenda item is a 2024 city audit presentation.

I'll call on a representative from the administration to discuss this item.

Eric was going to make an introduction.

Okay.

Are you there, Eric?

I should mention um that our business administrator Eric Evans is not feeling well, so he's available remotely.

Hello, um, Chairman Crams of Smith, thank you for hosting this this evening for this meeting.

Sorry, I can't attend in person.

I do have the fluid and uh don't want to be there to infect anyone.

So needless to say, um, I do have a couple comments, and we'll just start with their presentation.

But the audit is a large undertaking for uh for us, especially for the uh ministry and financial services division.

It's an ongoing event uh that takes the work of a lot of people through all the departments and it goes on throughout the entire year.

Tonight we're here to review the 2024 audit.

Uh and having said that, we can also say that the 2025 audit is also in the beginning stages as as we continue to move into next year.

So I want to take the time to thank everyone that's been involved with responsibility of keeping and providing the data that's required to be submitted to our auditors.

Uh there's a citywide if can you hear me?

Yeah, yes, we can hear you.

Okay, I'm just getting notes on my thing that's currently offline.

So I make sure I'm still there.

But uh, it is a citywide effort that's gonna involve dozens of people in the end.

But the table tonight are really the two point people.

We have um sitting there who you're familiar with, Wendy Lazarchak, our director of budget and finance, and uh as a CPA, she has been and as a role, previous role of director of financial services, the point person for I guess I can say more than years, I would say into the decades with our audits.

Uh next to her is Joe Vlosik, our current director of financial services and the current point person, the audit.

While many people are involved throughout the process throughout the year, Joe really takes the lead um through and becomes uh the point man.

So we appreciate uh both our efforts, especially.

They both have prior experience in auditing, which serves the city well uh during this time.

And it's the two of them that will be available to answer most any of the questions you have with regard to specifics about the city once the presentation is complete.

Um, with us tonight is Jennifer uh Kruger Kibbe, uh, who I believe you are familiar with, and she's she's company for the last couple of years.

She's a partner at Mayor Dussel, and she leads the team that conducts our audit.

So I want to extend her thanks from the city of Bethlehem uh for the professional relationship that we have with them as well as the services provided by their firm.

So she did previously share slides with uh the council, and I will now turn to Jennifer for her to report on the 2024 audit.

Thank you.

Thank you, Eric.

We hope you feel better.

And I just okay, all right, good to try my technology, make sure I'm able to pull everything up.

So the first couple slides are our required communications.

So this is in a separate letter that we call the to communication to those charged with governance.

So we're required to, in accordance with auditing standards, have these written, and I always like to highlight them in the beginning of every audit presentation.

So our responsibility is under auditing, the audience standards generally accepted in um the United States of America.

In addition to the government auditing standards in uniform guidance.

So similar to previous years, the city of Bethlehem expense one than 750,000 of federal wards, which requires you to have that separate single audit.

So that is what requires you to have an accordance with government auditing standards as well as uniform guidance.

So our responsibility is to opine on the financial statements themselves, but the financial statements themselves rely on the responsibility and management and the city.

And we also, in accordance with government auditing standards, we do review internal control of our financial reporting to assist with our testing and our audit approach.

We do not opine on the internal control of the city.

However, if we come across any issues, we do report those as part of our findings, but there were no findings to report, which we'll get to that slide later.

And we also audit in accordance with the uniform guidance.

So what that means is out of all the federal awards, we choose certain programs that are meet a threshold and we perform additional internal control and compliance work.

So every year the federal government issues a compliance supplement, which we use as an audit guide.

So we utilize that to design our audit approach and exactly what we have to test for those major programs.

The significant accounting policies for 2024, all municipalities, all cities had to evaluate whether there was there were two new standards to evaluate GASB 100 and GASB 101.

The one regarding accounting changes and error corrections had no impact on the city's financial statements.

So nothing to report on that one.

Another one was on compensated absences, which all government entities were required to evaluate all accrued liabilities regarding salaries or leave, in particular sick leave with a lot of municipalities and evaluate whether you have to record additional liabilities this year.

So there was some slight change over that, the estimate, and we reviewed that with management and had no issues with their calculations.

Indiana does not have a material impact on the city's financial statements.

Just wanted to bring it to your attention.

Those are technically two new standards that were adopted.

But other than that, there were no other significant accounting changes and the policies were followed in previous years.

Accounting estimates are always utilized for recording transactions as well as footnote disclosures.

The most significant are the same as the previous years.

Fair value of investments as well as the actual assumptions that drive the net pension liabilities and the net pen the net post-employment benefit plan liabilities.

And all of that is disclosed in the footnotes themselves.

There are no sensitive disclosures that we have to bring to your attention.

That we did not have any difficulties performing our procedures or receiving information to complete our audit procedures.

So we had no issues working with any departments.

We want to thank everyone for their efforts.

We did not, if we come across any immaterial adjustments or material adjustments, we always work with management to see if they should be recorded.

But in combined, there were no significant proposed adjustments that were material to the financial statements.

So there's no findings over financial reporting that we have to provide.

We did not we also issued, we received a management representation letter in order to issue the financial statements.

Those are all similar representations as the previous year.

And other matters, there's supplementary information including the financial statements.

There's certain disclosures, there's certain reports that are in required to be included in accordance with the government auditing standards, historical information on pension, the post-employment benefit information, man's discussion analysis.

We review that information, but we do not opine on it.

And then the supplementary information, the biggest portion of that is the schedule of expenditures of federal wards.

So we do review that and perform audit procedures, and we performed, we gave in relation to opinion on that information.

But the results of the audit itself for the financial statements, we gave what's called an unmodified opinion.

So that is the best opinion that the city can receive.

And in our opinion, we stated that the financial statements are materially accurate in accordance to generally accepted accounting principles.

Similar as previous years.

As I mentioned, there's budgetary comparison information and there's historical pension and other post-employment benefit information included.

So we have a paragraph talking about that, as well as the supplement information.

Now, similar to previous years, there are three legally separate entities that roll up into the city's financial statements.

One of them we audit the library, we audit, two, we do not.

So we do not audit the parking authority or redevelopment authority, but we receive those independent audit financial statements and we rely on those for our audit support.

So we reference that in our opinion.

And those two entities are not performed in accordance with the government auditing standards, nor is a library, has no impact on the city's financial statements.

We just have to explain that in our opinion.

So this slide summarizes some financial highlights for 2024 as well as the past two years.

Now, governmental activities focuses on all your governmental funds.

So not only your general fund, but it also includes your NUKI fund as well as any special revenue funds.

And then this is on a full accrual basis, which is different how the city budgets.

So this would include capital assets, any long-term assets as well as these long-term liabilities.

So a little different than the fund statements themselves.

But just to give you some highlights, the change in net position, that is essentially the net income for all of these governmental and governmental funds on the full accrual basis.

So the net the change in net position, your net income is 20 million dollars for 2024.

And you can see there's some fluctuation for the revenues and the expenses.

The total revenues increase by about 5 million.

A lot of that had to do with various grants.

So there was due couple new, I think community development grants that took place in 2024 to increase that revenue.

There's also an increase in real estate taxes, an increase in interest income.

So various items there.

And on the expenses side, a $4 million increase.

So similar to on the revenue side, a lot of those new grants that took place, they were actually passed through to sub-recipient organizations.

So they showed up as revenue and as expenses.

And there's also that management discussion analysis that's included in the report will give you a lot more details as to these variances.

And this is a historical chart that shows those governmental activities, revenue versus expenses.

As I mentioned, this is full accrual.

And this is a historical analysis and a chart analysis of pages three and four of the statement of activities of the financial statements.

And it's helpful for a financial statement user to see by department the revenues that are generated and the expenses that go out.

And the net position, still focused on full accrual.

This is on governmental activities.

So net position is accumulated equity for all of these funds.

And in accordance with the government accounting standards, you have to show the accumulated equity, the net position in three buckets.

You have to show it as net investment and capital assets, which takes all of your long-term assets and offsets the debt associated with that, the unrestricted and restricted.

So out of the total net position for all of these entities on the full accrual basis was 43.6 million.

And of course, that was an increase in the previous year.

And out of those buckets, you can see the graphical analysis, comparing prior year, um, past two years and current year.

Now the focus on the business type activities.

So this would include your sewer, water, golf, and stormwater funds.

Change in net position, once again, that would be your net income.

So the net income for 2024 was 15.2 million.

Revenues increased by about 1.8 million, and expenses had a slight decrease, less than a million dollars.

And what's explained in the management discussion analysis, the charges of services revenue that's generated is sufficient enough to meet those expenses to have reserves for future years for any needed capital outlay or expenses that need to take place on the retirement of debt.

And similar to the other graphical analysis, still focused on your business type activities, showing the revenue and excess of the expenses, as well as those those buckets of the net positions.

That's your accumulated equity, the breakout between unrestricted and net investment in capital assets.

Very little is in restricted net position at the end of the year.

But as I mentioned, there was a total increase of 15.2 million during the year.

So that increased your net position for these funds to 77.9 million at the end of 2024.

Now, some financial highlights on the general fund, which is your chief operating fund.

And this is focused on current resources.

So a little close to how the city budgets, because I know the city budgets more on the cash basis, but this would not include long-term assets.

It does not include long-term debt.

So the change in fund balance would be your net income or net loss.

There was a $1 million decrease.

So that would show as a net loss on that fund for 2024.

Revenue and other financing sources, which that includes transfers in coming into the fund.

And there was a slight increase during the year, as well as the expenses increase.

So I mentioned a couple of items.

The increase in the real estate tax revenue, grant revenue had a fluctuation as well with the various different types of grants.

And we also, there was also an increase in ambulance fee revenue that took place in 2024.

But the, as I mentioned, that management discussion analysis is a great document.

It's right after our um our independent auditors' opinion.

So that's a great resource to see how management explained all these variances.

And on the expense side, the community development increase by about 4.5 million.

And a lot of that had to do with those grant-related projects.

So RACP as well as the Bethlehem Food Co-op that took place.

And there's other departments that sold increases, police and fire salt increases due to capital outlay and salaries.

Now the fund balance for the general funds is your accumulated reserves for your general fund.

And this is broken up between assigned.

So out of the 58.9 million, what is shown as your fund balance at the end of 2024, 14.2 is assigned for future expenses.

So that's essentially designated by management internally to for future capital projects and excess medical claims for future years.

There is a small restricted for community development.

That's only 253,000, but that remaining is unassigned, the 44.4 million.

So that's unassigned and available for future spending at the end of 2024.

So this is just a graphical analysis showing your revenue versus the expenses for 2024 and the past two years.

And then the next two slides, this one is on the expenditure.

So I just went a little too fast.

Sorry about that.

So the governmental funds on the revenue mix.

This is slide 14.

Sorry, I advanced too fast.

So the governmental funds include your general fund, but it also includes Nuki and your special revenue funds, which would be your liquid fuels and your CDBG.

So this is all of those funds showing the distribution of the revenue coming in.

And you can see the highest bucket of revenue coming in would be taxes.

And then the second highest grants and contributions.

So that's the blue color.

Yes, blue is 2024.

And purple is 2023 and green is 2022.

So it kind of shows you that historical mix of the different revenues for all of those funds.

And the next slide is the expenditure mix for all of those funds.

And of course, the largest expense would be on the public safety, similar to any other third class city, um, and showing the other departments within your budgets.

And then lastly, on the single audit side.

So I mentioned we had to perform the separate single audit.

So we chose out of all your federal expenditures, expenditures, we chose three major programs.

The one is what we call ARPA, the coronavirus, state and local fiscal recovery funds.

So there was a lot of state funding that was still funded other under this funding stream.

And there was also two other the Highland Conservation, that one was for the property purchase, I believe for the rail trail connection, and then the economic development initiative that was for the Bethlehem Food Co-op.

So what we did is we used that compliance supplement that's issued by the federal government.

We also use the grant agreements and we designed our audit programs and we did internal control work as well as compliance work.

And as a result of that, we gave an unmodified opinion, which is the best opinion that you can receive.

So we stated that all three of those programs, we had no material issues regarding them, and in accordance with uniform guidance.

And we had no findings as a result for financial reporting.

So there are no government auditing standard findings that we have to bring to your attention.

And then lastly, as a result, as I mentioned, there's no findings, no deficiencies that we have to report.

But as part of our audit procedures and approach, if we come across anything that we would deem to be a best practice recommendation, we would include that in a written management letter.

And we included two best practice recommendations.

The one, the first one has been a repeat comment over the sewer administration charges.

We just recommend that the city review the procedures over those charges for the sewer fund to ensure they're substantiated and allowable in accordance with the act.

And then the other one was properly approving P card statements.

We could verify through conversations with various people that there's sufficient documentation on P Card policies and purchases and the reviews are taking place.

We just recommended uh a signature denoting that that review was taking place.

So that is all that I had to cover.

Did anybody question have any questions over presentation or the audit itself?

Thank you very much.

Um, before we go to questions, is there anyone else from administration that would like to make any comments?

Joe would like to make a yeah, and oh sorry, I'm not used to sitting and speaking into a microphone, but um, I just wanted to echo what Mr.

Evans stated earlier that the audit is kind of a year-long process.

Um, there's time that's designated, I think it was February, March time frame that field work, the auditors come in, they make a bunch of requests, but the actual work is being done year round.

Um, you know, ending up with a good audit opinion is a result of all that work culminating into what you're seeing now.

Um, and just from my own personal experience, I used to audit and you know, occasionally you would have to have uncomfortable conversations with clients or government entities about issues in the audit.

Um, and I think last year when I was sitting back there, Mayor Reynolds stated that you know, when it you have a clean audit, it doesn't really generate like headlines or anything like that.

Um, but I just want to, you know, we I view this as like a Super Bowl, um, which you know is an accounting nerd, I guess, perspective.

But I think everybody should be proud that we are in the position that we are in, and um hopefully we continue that in the future, and we certainly appreciate our relationship with Jen and uh her team, and we'll keep moving along getting ready for 2025.

Thank you, thank you, Joe.

Is that it?

You don't have anything, Lenny Dan?

No, okay, great.

All right, we'll take um do any committee members have any questions or comments.

I do um when it comes to Leon, when it comes to the recommendations, how does the city go about?

So there was the two recommendations the city review charges of the sewer fund and the P card review.

So, how does the city go about implementing like what does that look like when you get a recommendation?

Is it automatically implemented?

How um walking through that?

Well, for the first one, um, in regards to the SOAR fund charges to the general fund.

That was the amount was created, the excess was created over a long period of time.

So now every year going forward, this year in the 2026 budget, we reduced the charges by 300,000.

Next year, it's the landfill debt goes away.

So we're going to reduce the charges by 400,000.

So every year we're going to reduce it, or and also as time goes on, the gap gets smaller because of inflation.

And um, it might get smaller because somebody in the SOAR fund may have very high medical bills or self-insured.

So our goal is to slowly tip away of uh this gap between what it should be and what it is.

And so um that's our plan for that one.

Okay.

The second one, the P card.

Um we already formed the committee to um, and we have representatives from all the user communities, and we're looking at the current policy.

Um, it hasn't been looked at since what 2014.

The um standard operating procedures, um were um already came up with a way to assign approval.

Like the problem was nobody was actually physically approving, they were verbally approving transactions, but not like we couldn't show the auditors, oh, this piece of paper.

There was no piece of paper or no file.

So um, we've come up with a process for that.

Um, we're tightening the restrictions on the usage, um, looking at how um we can benefit with more um in some areas we may want to use the P card more, but in others we may not.

So we're just looking at the whole process, and we've um had two meetings, two or three meetings already in regards to this.

And our goal is to have the new process in place by January um 2026.

Can you let us know once you put it in place?

Just uh out of curiosity.

Yes, I think you're welcome.

Those are the only questions I had.

That's all I have.

Okay, council and quite do you have any questions?

I think actually I'll you answered all of my questions.

Um, the one thing you talked about um capital assets and then long-term liabilities um in uh page five.

Um and so our capital assets, I mean, that includes everything from like fire equipment and you know, those those big million dollar trucks and things like that.

So we can see fluctuation when we take possession of a of a vehicle or something like that, can swing things in in those kinds of ways.

Yes, correct.

So in the individual funds.

So if the if the Nuke fund showed an expenditure, tell us what the new key funds is.

Sorry, that's actually non-utility capital fund.

It's fund six.

Okay, we never call it that.

Yeah, that's no, it's okay.

Now I know.

Sorry.

So if a purchase was made uh out of the non-utility fund that would be shown as an expenditure, that's how we would budget for it.

But when we get to that full accrual, what we call the governmental activities, we actually reverse out that expenditure and show it as an asset.

Yeah.

Right.

So it's just a different it's what GASB makes us do.

So it shows the use of the financial statements what the government truly has long term and that even includes infrastructure road improvements and all of that information.

And we currently have a policy what is it everything over 10,000 10 million what is it 10,000?

I think it's 10,000 but it's also some things it's case by case depending what what it is.

So there's that's another part of the audit that's fun is going through all the purchases and seeing what what different funds purchase and what can we capitalize what can't we capitalize which now includes like software leases and things like that.

I was just going to ask about software and whether or not that was considered a capital asset.

Unfortunately is in accordance with CASP now.

Yeah.

And that's not like you can sell it to make it a right to use that's their approach.

You can't liquidate it though.

And you can't completely it's to match the depreciated over multiple years as opposed to taking the expense in one year.

You do you take a portion of it during its lifetime.

Okay.

Is that's what it's for good well I really appreciate all of the work and um the different perspectives in looking at it from accrual and from a cash based standpoint and understanding how that money moves from you know having it having the the the funds but knowing that um we have to put them into operating and then they're kind of one time um you know whether we have some you know people sometimes call them rainy day funds but they're not really they're just a temporary you know yeah they're not rainy day funds at the end of the year the bulk of our revenue comes in in March the end of March which is um the tax discount period so your cash balance at 1231 gets you to that March 31st so you have how many payrolls like at least um six seven payrolls a couple debt payments our weekly medical so it gets us there until we actually get cash flow again.

Right right yep I appreciate it thank you very much you're welcome thank you thank you for um for all your work I know it's a a year long ongoing process so appreciate that um okay I just wanted to just clarify a few things um under the general general fund so you would state I thought it was 58.9 million is was a balance and then 14.2 for future capital expenses and uh 253 for community development so does that mean then that we're looking at 44.7 for the general fund balance yeah so out of that 58.9 million it is segregated between those categories so the amount unassigned available for future spending was 44.4 million at the end of 2024.

Okay great thank you and um oh I wanted to ask you about when you uh the the single audit results for the three different um fundings and programs so um you said you you so you audited um the money that went to or came in from the programs it went to for example like you mentioned the food co-op um so do you look you looked at the money just from 2024 then that went from the city to the co-op that's correct okay and you and you found no problems with everything was fine as far as the way it transferred to the co-op and that's correct okay because there's been a lot of public outcry about that lately so that helps to clarify that thank you very much um and we talked about the other the um enhancing best practices and I just wanted to so for the um the sewer administrative charges and I I I heard what you said Lenny but I guess I'm just wondering how how could I I know you may not be able to say that or how can it be enhanced or what is missing to make it a best practice I I think what the administration's currently doing evaluating and decreasing those charges will will gradually get to um because what we look as the actual expenditures on the sewer fund side versus what was transferred.

We have a cost study done every year and the results fluctuate from one year to the next but in I've been here since 1995 and um we used to um we were told that was okay to use um contributions from other funds not the water fund because that's under PUC to help us balance the um general fund and so it's took years and years of adjustments going with years and years of adjustments of increased charges now it's going to take a couple years we can't just wipe it away in one year okay so we'll we're slowly every year we're gonna say okay how much do we have now how much do can we reduce it by and then compare it to the maximum study and I hope to get to a point that we can just look at the maximus and that will be our general fund charges for the following year.

We can't just wipe it away in one year.

Okay.

So we'll we're slowly every year.

We're gonna say, okay, how much do we have now?

How much do can we reduce it by and then compare it to the maximum study?

And I hope to get to a point that we can just look at the maximus, and that will be our general fund charges for the following year.

So it would be balanced.

Yes.

All right, thank you.

That's the ultimate goal.

And um and the P card statements.

I understand.

Is there are there currently like forms or electronically like forms for people that have the P cards, like if there's any purchases or anything?

Because I know you mentioned like there was verbal, but I'm just like the tracking system.

I know you're doing the committee, but like what exists now as far as tracking, I guess.

Do you want to take this one?

Yeah, so individually in each um bureau, they they have P cards, and uh, it's typically the business manager at the end of the month who reconciles and codes how it should be, and then it comes down to financial services or accounts payable, enters it into the financial system.

Um, but where I guess if you want to call a shortfall in the process was is although there were individuals reviewing it, coding it, and bringing it down to be entered, we didn't have that overarching um approval from the standpoint that somebody looked and signed off or documented that these were approved.

So one of the things that we're discussing now is at the bureau level, before it comes down, they all get individualized statements, so to speak, and it being approved there and then also being approved at another level.

So to strengthen the internal controls that are already there, but also to satisfy the documentation side for the audit.

Um, there's also a possibility, I think that approvals could be done online.

Um, but that is, I guess, going to be explored because nobody really knows, I guess, how that will work.

Um, but we're we're just trying to work as a group between everybody that kind of touches the process.

How you know to not only make it better, but strengthen the internal controls and you know, hopefully get rid of the the comment going forward.

Right, good, okay, good.

Sounds good.

Because I when I heard the verbal, uh, you know, that just was a little red flag because I know everywhere I worked, we had to first do papers and then it became electronic, which was easier, but yeah, you know, you still need a signature.

So that's good.

And we have situations that somebody will be out on the field and they're like, oh, can I quickly go to the acroids and buy something?

And they'll just say, Yeah, go ahead.

And well, we you need more than yeah, go ahead.

Right.

Yeah.

Yeah, but I get it.

They're out there and they need it, absolutely.

So okay.

And um, the only other questions I have is um I know other years, like we we it seemed like we had more information like data and actually like numbers.

Is there a reason like which just seems like this year was different?

Like, do you know what I'm saying?

Like last year we had more of the actual audit information.

Like, did like do you mean like passage?

You have like like history of taxes, or is that what you're asking?

Well, I just felt like last year.

I mean, this this is really great and helpful, but um, other years I felt like we had more of the actual like the numbers and tables and like the actual financial statements, yes.

Yeah, yeah.

Well, if you read like um Jen was saying, if you read um at the beginning, it's I'm not good with Roman numerals.

No more no Roman numeral I through let me see where it goes to the numbers that I don't think I have that.

Yeah, it's right in the front of the audit.

Oh, kid.

So the actual financial number.

Okay, yeah, that's what I mean.

Like we actually had part of the audit or the whole audit and this year.

We did they're online, but I can I'll email you a copy of the whole audit.

Okay, because I just that's helpful to have even before this meeting for sure in the future.

So okay, great.

And if you ever have questions when you start looking at that, feel free to reach out to me.

The last slide has my contact information.

I could speak hours talking about government financial statements.

I know nobody wants that, but I'm always happy to answer questions.

That's okay.

So I'm sorry, you're talking about the the 169-page thing, right?

We we did get it.

We got yes, yes.

It was yeah, very large document via email.

Okay.

Um because other years we did get we got the most important part of it in a printout before the meeting.

Okay, you know, so it's just something for for next year.

Okay.

Um just uh so do any other council members have there's no other council members, do committee members have any more questions?

Okay, thank you.

This presentation was for informational purposes only.

Thank you so much, Jen.

Thank you.

Safe travels.

Thank you.

So we'll go to agenda item two.

The second agenda item is to review proposed transfer funds to purchase additional police vehicles.

I will call on a representative from the administration to discuss the request.

Okay.

Uh first of all, thank you, Jennifer.

Appreciate you coming out today with this weather.

You got ahead of that storm or behind the storm, either way, you made it to Bethlehem.

So thank you for your work.

Uh agenda item number two is the police vehicles memo, which you received as part of uh the packet.

And deputy chief Michalt is here to explain the mechanics of that memo.

Okay.

All right, thank you.

The uh the last couple years, as you know, we've been down staffing, so we've been using excess salary dollars to upgrade things in the police department from equipment to facility improvements where we can.

This year, right now we're requesting a transfer of $645,000 to our vehicle account to upgrade department vehicles as needed.

Just some quick facts for you.

So you have some background.

The department has a total of about 90 vehicles.

24 of those vehicles are assigned to patrol.

Back in 2022, we started investing heavily in our vehicle fleet to upgrade it after several years where we only had three vehicles purchased per year, which really strained a fleet.

In 2022, our average mileage of dominator readings on the patrol portion of the fleet was 84,000 miles per vehicle.

Currently, we have that down to about 39,000 miles per patrol vehicle.

That's good, but that's only the patrol fleet, which is about, like I said, 24 vehicles.

With a 90 vehicle fleet, we still have over 30 vehicles with over 100,000 miles on them actively out there today.

This money will really help us upgrade our fleet to make it better for the officers, safer vehicles, respond better, more reliable, and really make their working conditions much better, you know, which they certainly deserve.

Uh, we've gone through several other budget transfers, you know, through different funds through the year to really take advantage of the savings that we've had in salary.

Uh this being the largest transfer this year.

Earlier this year, just some examples.

We transferred over 103,000 for a new robot for ERT to replace a 15-year-old one that you know among its life had been shot once already.

So it's a very important tool to have to save officers' lives.

We're transferring over 45,000 this year for new furniture for the records room.

We transferred over 12,000 for some additional cameras that it allowed us to move camera networks to Maine and Union Boulevard to add cameras there, and about 70,000 to finish out over time for the year, which projected we'll have at the end of 2025, only about 22,000 remaining in our salary accounts.

We're really trying to take advantage of the salary that we have, the excess funds to really make the department a better place for the officers and improve what we can for the city.

Okay.

Thank you.

Does anyone else from administration have any comments?

No.

Okay.

Do committee members have any questions or comments?

Sure.

Um, hi.

Uh just wondering.

So 24 patrol cars, so that means there are 66 other kinds of vehicles.

Yeah, so that takes an account.

Yeah, can you give me what kind of more marked vehicles as well?

So keep in mind school resource officers have vehicles, community services has vehicles, housing authority has vehicles, investigations has vehicles, uh, undercover officers have vehicles.

There's other special vehicles out there from pickup trucks, you know, the traffic unit, the mounted unit, uh, armored vehicle, big transport trucks.

So it goes through all kinds of things, including motorcycles, and that doesn't include trailers that we have, the haul around different items.

Great.

Thanks for clearing that up.

I was just, I thought when you said patrol, you know, my mind goes to like all of that.

Yeah, you know, is whether they're housing authority or resource officers or whatever.

I don't, you know, it doesn't necessarily get delineated in my mind.

So I appreciate you um clarifying that.

That's the only question I had.

Thank you.

Councilwomalio, how many vehicles does $600,000 get you?

Well, it depends on what type we wind up purchasing.

So after the money's transfer to look at what you know is necessary and in worse condition, we replace trucks, vans, patrol vehicles, you know, other specialty vehicles and average patrol vehicle cost, just in the base cost outfitted, just be around 62,000.

You know, when you buy the vehicle and all the equipment that go in as far as lights and markings and everything else.

Okay.

I can't agree with you more.

It's it's great to see the fleet being updated.

These are basically moving offices for our police officers there in them all of the time.

So it's great to see that the money that has been saved.

Um saved because you know, being down so many people is not is still being being reinvested within the police department.

So happy to vote for this.

Okay, thank you.

I had that question too.

Um one question, what about e-bikes?

So are you looking at you have some now?

Are you looking at purchasing them or do you feel like we have about eight e-bikes right now, six or eight?

Uh, and they're out there, and there are some assigned a patrol, there's others in the housing unit and the community services.

Those two units ride the bikes most of the time, but we do have e-bikes for a patrol to use as well.

At a certain point, there's more e-bikes than we need that people can actually ride them at once.

So I said I believe it's eight that we have currently, and that's a good number to be at.

And you think those are like you know, productive being out there in the community that the bikes are helpful?

It really helps the officers out.

So when they're rushing to get somewhere, you know, they have more energy to deal with whatever incident they were sent to initially.

If they're sent to a fight somewhere and have to pedal to get there with no electric assistance, they can certainly do it, but then part of their energy is expending getting there when they might need that energy to resolve a conflict.

So this just gives them a little extra to get there in a better condition to resolve whatever's going on.

Good, makes sense.

Great.

Um the only other questions I had is more for um administration.

So we'll we'll have 12.8 million left in the staffing fund, it sounds like correct for under police.

No.

If we take 645, no, no, no.

Well we'll only have about 20,000 remaining.

There's still payrolls, yeah.

Okay, because I okay, because it has 13.4 million and we're going down to 12.8.

So how much will we have left then?

Uh as uh that's the total cost before he expenditure.

Yeah.

How much will be left then for 20,000 dollars?

20.

All right.

And hopefully we'll get more police that we can use it we hope for salaries, right?

Correct.

Okay, great.

That's all I have.

Um that's all I have.

Thank you so much.

Thank you.

So that's it.

I will accept the motion and a second to recommend approval of the administration's request and to place appropriate legislation on tonight's council agenda.

So moved.

Second.

The clerk will please call the roll on the motion.

Ms.

Queer Tech.

Aye.

Ms.

Leon.

I'm Grammy Smith.

Aye.

The appropriate legislation will be placed on tonight's council agenda.

This meeting is adjourned.

Thank you.

All right, yeah.