This second budget workshop for Fiscal Year 2025 focused on the five-year Capital Investment Plan (CIP), the 2024 bond outlook, and the city's financial partners. The CATS budget outlook was postponed to the evening regular meeting. Council members debated funding constraints, the need for additional revenue, and strategies to bundle projects for greater impact.
Five-Year CIP & 2024 Bond Outlook
Financial Partners
At Laj. Victoria Watlington at large. Ariel Smith, Lead City Clerk. All right. With those introductions, we'll turn it over to our city manager. Thank you, Mayor, members of council. We're about three items today in terms of the budget workshop, the second budget workshop, and that is CATS budget outlook. We'll also discuss the five-year CIP and the 2024 bond outlook and as well as our financial partners. We will have in the budget committee meeting, uh, other enterprise funds, which there'll be a discussion with uh water and storm mortar and aviation that has always been a part of the plan. And we have you know opportunities even that evening if there's any additional information that we have to share. So we try to uh fit this around these uh two workshops, but also utilizing the um budgeted in intergovernmental relations committee. With that, mayor, before I uh turn it over to back to you, um we uh need to make one adjustment and move the CATS budget outlook to a third. Um with that said, Mayor, I'll turn it back over to you. All right, so we have one. So we have one adjustment to the agenda, and that is with the CATS portion. So we will go into the CIP immediately. And now I want to recognize councilmember Ajmeira for any comments as chair of the budget advisory committee. Well, let's ready to rock and roll. All right, thank we like that, Miss Edmir. It's very cool. All right, so um we'll go to Ryan. Thank you. All right, so uh the first thing we'll talk about today is our five-year CIP and our bond outlook. So when we when we propose and approve a budget, we are only approving through council the first year of our CIP, but as part of the plan, we also show the next four years so we can talk about capacity, future projects. As you know, when we go through these uh CIP projects, they take multiple years to uh plan and execute. So I'm going to turn it over to our assistant director Hannah Bromberger and special assistant for mobility Ed McKinney, who are going to uh run us through a bond outlook, but additionally some of our facility projects and uh the outlook there. Thank you, Ryan. Good afternoon, Mayor, members of council. So, as Ryan said, my name is Hannah Bromberger. I'm the assistant director for Strategy and Budget, and with me is a very familiar face, Ed McKinney, special assistant to the city manager around strategic mobility. So you'll remember that uh in February at the February budget workshop, Jennifer Smith, the city engineer, and I were with you reviewing the funding status of all active capital projects. So everything that we talked about then in February was related to ongoing previously appropriated projects. Today we're shifting gears and we're looking ahead to the existing plans for fiscal year 2025 and for the 2024 bond. As a reminder, like Ryan said, uh, you adopt a five-year capital investment plan annually as part of the budget process, but the first year of that plan is the only one that is locked in place. The remaining four out years, as we often refer to them, um, are simply a plan. So they're adjusted annually as the budget is presented to you. So the starting point for our conversation today are those four out years for the current budget. Um, and once we recap the plan, we'd like your feedback on priorities as we head towards the proposed budget in May. This graph recaps what Theresa Smith, uh, the city's chief financial officer officer, excuse me, shared with you in February around updated steady state capacity. So the previous steady state included 210 million dollars of general obligation bonds or geo bonds as we usually refer to them. And as a reminder, geo bonds have three different bond categories housing, neighborhoods, and transportation. Teresa shared that the steady state has increased by 18 million, so it's now at 228 million. We'll talk more about the 2024 bonds later in the presentation. Uh but I want to mention COPS really quickly. So the steady state also includes about 26 million dollars on average uh per year in certificates of participation, which we usually call COPS. And in reality, because of the way that facility projects are funded as they move through conceptual planning, land acquisition, design, and construction. We know that the actual funding tends to fluctuate away from that 26 million, but we build those fluctuations into our debt model. The updated steady state that Teresa talked about at the February workshop had no change in the COPS capacity. So as we move to talk a little bit in more detail about COPS projects, just a reminder that COPS traditionally fund facility construction or facility renovations. And COPS funding in recent years has really focused on public safety and on maintaining our existing assets and improving operational efficiencies.