Good afternoon, everybody.

Uh welcome to the finance debt and budget oversight uh committee.

And the clerk will call the roll.

Soranto here.

Gaddis, Hobbes, Jones, Martinez, two present.

Thank you, Madam Clerk.

Today we're gonna begin with the Department of Public Utilities and an update on collections.

Good afternoon, uh Director.

Good afternoon, Councilman.

Um I would first like to start uh with some of the items that were touched on the last month meeting.

Um Chief Operating Officer Robison reported during last month's meeting.

We have been working on a plan uh with what other municipalities have done and what the city of Toledo is able to do as far as irrigation meters and um our deduct meters um.

One of the questions that was asked was can we finance through this through an assessment?

Um as for private plumbing, Ohio's constitution and statutes are clear that enterprise funds cannot be used for private purposes.

Performing work on or loaning money for private plumbing is not authorized.

So the approach that we will that we find to be most appropriate is to have two meters.

Um one meter will be for the irrigation, and our department between utilities administration and the water distribution are working on setting up that program, and we will be contacting people this week and we will work with comms to um uh get that information up on the website.

And next year we will do a a larger campaign, but since we're starting to dwindle down for the year, we will let people know, but just know that next year we'll have a more robust robust program.

Um this is a program that we feel that the law department um can get behind and uh we've been working on it um together with you and um councilman Meldon um to come up with a with a plan.

Um so that is what we've come up with.

Um if uh we do hear of something that we can do that's more robust, uh of course we'll continue to look at that.

Could I just ask a quick question, Director?

Sure.

In terms of notifying, I know that we've emailed uh you the a number of people who are uh concerned about the elimination of winter sewer averaging and uh hopefully they'll uh be able to take advantage of this program.

So you're gonna contact them, but is there any way that we can have in the billing statements something to the effect of you know call DPU if you're interested in something like that?

Yep, and that's what we're working on with comms.

We also looked at um maybe putting it into the uh the portal for those that are on the portal, um, some messaging on there as well.

So we're gonna look at uh multiple ways to let people know that we have this program.

And there w there would be something on the website also that this year.

Yes.

Okay, great.

All right.

Well, thank you.

I appreciate your help on that.

Sure.

I know um many citizens will appreciate the opportunity to have an alternative uh plan.

Great.

Okay.

Uh you want to cover uh the delinquencies and so forth.

Yes, I will.

But there was one more thing.

There was a a question about um one of our shopping centers, Swain Field, and I did get with Councilman Hobbes and answer those questions.

They did um pay their outstanding bill.

Um May uh payment was made May twenty-third, twenty twenty-five twenty twenty-five.

And they have some outstanding delinquency currently.

But it's you know from May and June that we'll work with them on that.

And if I could uh let the record show that uh councilwoman Dr.

Jones is here, thank you.

And please proceed directly.

Okay.

The installment payment plan has generated significant collections with an increase from the month of June with over $3.8 million collected year to date from residential and commercial customers combined.

However, the utilities total active delinquent balance remains substantial at approximately at approximately 40.2 million dollars with residential accounts comprising the majority of outstanding debt.

June recorded 120 service disconnections and 70 reconnections, reflecting ongoing collections and customer replay repayment efforts.

Reconnected customers, as I mentioned, are about 70.

So after meeting the requirements for service restoration, uh such as making payments and entering a payment arrangement or otherwise resolving the account issues, we were able to reconnect those customers.

So looking at the sheet before you, as you can tell, it's a little a little bit different than what we've had in the last few months, and we are focusing on uh the DPU installment and promise pay plans that we have.

Um residential customers, we have 2,157 new enrollments in June, which is a total of 6,502 enrollments year to date.

We've collected one point 05 million in June, which is 3.61 million to date year to date, going back to January.

Uh total scheduled repayment amount is 11 million dollars that we have um scheduled between our our programs with promise and our DPU installments for commercial customers.

We have 17 new enrollments in June and 84 enrollments year to date.

We've collected 55,467 in June, which brings us to a total of 185,587 year to date.

For our commercial customers, the total scheduled repayment amount is 366,872.

Um I've previously mentioned the disconnect reconnect that we have 120 customers that we've done disconnections for, and 70 have been reconnected.

Our active delinquent balances as of June 2026.

Residential is 34.78 million.

Our commercial is uh a little over 4 million, and our industrial is 1.35 million.

That brings a total active delinquent balance of 40, a little over 40 million.

Um again, we believe that the tools that we started with the um shutoffs that started June 1st have been a um an important tool to reducing our balance, and we hope to continue that going forward.

Okay.

All right, and then I I just want to clarify the disconnected customers 120 were uh were those were most of those residential customers.

I don't have the total breakdown, but that's what we have been focusing on is our residential customers.

Okay, by by way of referral, if you could just give us of how many were residential, how many were commercial industrial?

Um then I assume on the reconnected customers, all of them went on a payment plan of some sort or most of them.

70, yep.

Okay, great.

Okay.

All right.

Any questions for the uh director of DPU from members?

Okay.

Anything else?

I I believe, director, we started with about 66 million in total delinquencies.

So it um we're down to 40 million, which is good.

Very good, in fact.

Uh were any of those written off where we just said, you know what, it's just we're not going to collect of that 66 million.

Uh so we do have the fresh um start um amnesty program, and we can give you more um detailed numbers on that going forward.

Um we're we're still analyzing because we're in the kind of the height of that program right now.

Um so we can give you an idea of of how much was written off.

Okay.

That would that would be great to know if you could by wave referral would be fine.

And okay, any other questions?

All right.

Thank you very much, Director.

Thank you.

Next, we'll have the director of finance, Melanie Campbell.

Thank you.

Uh good afternoon, Chairman Surround to you, Vice Chairman Dirskal and members of the committee.

Um we're here today as the team approaches the table.

Our uh purchasing commissioner Natalie Brona is joining us, um, tax commissioner John Zavisha to present June uh revenue and expenditure reports, um CIP and as well as an update on federal ARPA spend.

Um but to get started in your finance packet, um, you'll see the first couple pages, our income tax report, and I will turn it over to Commissioner Zavisha for an update.

Good afternoon.

Good afternoon, Commissioner.

Starting on page two of the report, uh we'll go over the withholding numbers through the month of June.

Uh during June, uh withholding collections were up 1.4% or 238,000.

Um that pushes the withholding total for the year to up one percent or eight hundred and sixty-one thousand dollars.

Uh the month of July that'll be coming up here uh will be the second quarter for quarterly companies will be in that number.

So um we'll see a little better uh indication of where withholding is going for the year at the close of that.

Uh, when we move down to business net profits during the month of June, business net profits were down 1.2 million, um, which for the year brings us down 4.7 million.

Um, as I've mentioned before, uh, we sort of have a top six companies that we watch, which are the majority of our business not profits.

The entire amount of 4.78 million is concentrated in that group.

It's actually 4.81.

So all other business net profits are pretty much flat for the year, um, but we do have that in this group.

Um, and of those six companies, two of them make up about 91% of that total.

So it is a very specific group that unfortunately is in our largest six that's affecting the business numbers uh for that end.

Um we would still expect third quarter estimates in September, fourth quarter estimates in December.

Um but again, business net profits through the end of June are down 4.7 million.

Individual category uh collections did uh we're just shy of $50,000 up from June of last year.

Um that does officially move the individual category into the positive territory again, small amount up 46 uh 45,000 for the year, but overall uh Toledo tax collections through the month of June are down 3.87 or 3.6 percent.

Um continuing on to page three of the report, um key thing on that one would be our refunds issued through the end of June are just shy of 2 million, and our current projection for 220 or for 2026 would be 238.5 million, and I'll be happy to take any questions.

Is there a concern uh on the fact that we're a bit behind on tax collections?

Uh I mean uh the business net profits is definitely something that we're watching.

Um it is possible that these companies would make stronger third and fourth quarter payments, but they have not made those payments in the first and second.

Um the other thing that makes this very difficult is like I said, it's a small group of companies, so it's not an industry issue.

Um it's just particular companies.

Uh business net profits again, you pay it two ways.

You're either paying it because you filed your Toledo tax return and this was the difference owed, or you're making estimate payments in this case it would be 2026 estimate payments.

Um the fact that those estimates are down for the year is definitely something that we'll sort of watch on that.

Um July is another one where uh for business it was up last year, but I would think the 2026 number is probably gonna be closer to 2024's number.

Um so the the jump that we saw last July would not expect to repeat itself, so it is definitely something we're gonna have to watch closely.

So it is definitely something we're gonna have to watch closely.

But on the withholding side, uh it's encouraging.

I mean it's ahead of a little bit ahead of last year.

Yeah, so if you can sort of remember last year around this time, actually, withholding was down on a year-to-year basis, and then it ended the year up 3.1.

So we're sort of hoping that one's at least following.

You know, we're getting into our summer months and stuff like that.

So we're sort of hoping that one will follow that pattern.

Um I'd like that number a little stronger, but again, in the fact that it's in positive territory is still a good sign.

Yeah.

And then of course the individuals a little bit ahead too.

Correct.

Yeah, that's obviously our smallest group.

I mean, it makes up about five percent of the budget, but again, the fact that it finally moved to positive territory is a good sign.

Okay.

Very good.

Next.

Thank you.

Um, continuing on to page four, uh, you'll see the general fund uh revenue report through this first half of the year.

Um, as you look through the report, not a ton of uh additional changes to note from what we've seen the past couple months.

Um property taxes are in line at 50 percent of the budget, the license and permit category at 52 percent where we would expect it to be.

Um, the group A, group B licenses and fees, we do see those come in stronger typically in the second half.

Um, and the intergovernmental category, we are at 44 percent.

Um, we do have some semi-annual payments though that come through that category as well as our quarterly casino revenue.

Um, one quarter in uh so far, we would expect the next quarter here, probably next month.

Um, in the charges for services category, um, you'll see we're at 45 percent.

Um EMS fees and BLS transport uh continues to run a little bit ahead of budget.

Um, that category does include a one-time annual payment of 4.5 million approximately, um, which is causing that overall positive variance.

Cable franchise fees are another quarterly uh payment, um, though one that we'll continue to monitor is year over year we've seen some decreases in that category.

Um, just want to mention on the other revenue category, you'll see is at 176.8 percent.

Um that's driven by some settlement payments that um came in related to the PFAS settlement that the city was a part of.

Um, in the other financing sources uh section of the report, um we do have 24 budgeted from CIP.

Again, that transfer we make at year end.

Um the other transfers come in from the TOLAT and from ARPA.

Um, and then lastly, new um in this month's report, we are reflecting the bond uh non-tax revenue bond that the city issued, and then subsequently loaned to the Toledo Community Improvement Corporation.

Um, that transaction and debt issuance happy happened in early June.

Um, so the bond proceeds are reflected here.

Okay, could you uh director explain the refuse collection fees?

Uh it's at 36%, 37%.

So the refuse collection fee um in the budget estimate did reflect an increase in the refuse fee, but projected it starting January 1st.

Um that increase in fee did go into effect, but it started um in June.

Um so we have seen a couple months with an increase previously.

It looks like collections were around a million nine hundred thousand to a million in a month.

They're now more like 1.3 to 1.4 million, so we're seeing that impact.

Um, but we're playing catch up because we had projected the the increase to start earlier, and that's one that we'll have to look at as we move towards year end.

Okay, and then also the tollot.

Um where are we in on that?

You mentioned that earlier.

Um that one is right where we would expect it.

Um, it's in that transfer in other category.

Okay.

Um, so there's a monthly transfer there, it's at 57% over, also a little bit ahead of the year to date budget.

Good.

Okay.

Next.

The next two pages move into the uh general fund expenditure reports on page five by category.

Um, you'll see overall a positive variance compared to the year to date budget.

We're at 49.3 percent.

Um labor costs we do see running a little bit ahead of budget, uh, 0.8 percent.

Um, we do have certain contractual items that happen early in the year and will cause that variance.

We would expect to see that decrease as the year goes on.

Um the overtime costs for the general fund are something that we've continued to monitor.

You see police just about in line with budget, running a little bit ahead.

Um the fire overtime is one though that we will need to take a look at as we go through the rest of this year.

Their overtime, you know, is impacted by timing of the class and when they have retirements and they do have mandatory recall, which can lead to overtime.

Pension, employment tax, and medical expenditures, positive variances compared to budget at this point.

And then in the other labor category, you see is at 84%.

But again, this is one-time stipends that occur throughout the year.

I don't expect any concerns there with meeting that budget estimate.

Non-labor costs for the general fund.

You'll see on the supply side at 56%.

This does include spend for things like law enforcement equipment, clothing and uniforms for police and fire.

Those departments do have encumbrances set up, contracts that they set up to spend those dollars as the year goes on.

Again, not a concern in that category.

And as you look at the next page, you'll see you know we have just a couple areas where we're more than 10% ahead of the year-to-date budget.

One is in HR.

Again, that's contracts where the department has set up for spending that'll happen throughout the rest of the year.

So things like our EAP services or pre-employment physicals in the finance area, our ERP costs for hosting and as well as system support.

We have contracts for those that will spend during the year.

Okay.

Well, I I am concerned about the fire overtime because it is it's moving faster than police overtime.

So I'll make a referral to the fire chief and uh get her analysis in terms of what uh is happening in terms of that, what the reasons are because I think again um the overtime costs are going up.

Uh police, I'm not that concerned about at this point because it seems to be pretty much on track, and we're in the summer months, and we know that there are vacation schedules in that.

So I'll send a referral to the uh fire chief.

Anything else?

Um no, the last couple pages are the all funds revenue and expenditure reports.

Be happy to take any questions before we move to CIP and ARPA.

Any questions from members?

Seeing none, let's let's proceed.

Um, just briefly our CIP project report.

Um, you'll see overall all of our open and existing projects, including all you know, grant and loan funded projects.

Um significant items to note there, but be happy to take any questions if you have them.

Okay, any questions on CIP.

Okay, seeing none.

Next.

Um, and then the last uh piece we wanted to talk through today is our one-page ARPA update.

Um, so reporting here through the end of June of 2026.

Um, and you'll see that overall um 96.2 percent of the total ARPA dollars have been spent.

Um a little bit, we were required to have all funds in the ARPA program obligated by the end of uh 2024, which the city met that obligation.

Um as we look ahead, we have 6.9 million to spend.

Um, our departments, I want to thank them have been working really hard to spend these dollars over the past several years, and um all of them have detailed plans on making sure that every last dime gets spent before the end of this year.

That being said, we continue to work with our law department, make sure that we have contingencies in place that should timelines shift on spending any of these remaining dollars, um, that we have a plan in place where we can you know within the existing projects change our obligations to make sure that we're still completing the projects, but fully spending all the ARPA dollars by the deadline.

Uh we do have some representatives from the different departments here today where we may have balances that we're still going to spend, um, and we can answer any questions that you might have.

Um, one that I know we will have to look at changing how we fund it is the healthy food incentive program, um, the food systems hub and the small market grant to get everything fully spent by the end of the year.

That timeline is just too tight.

So that's one that we're working on how we would reallocate within the existing ARPA projects to make sure that we can still do the healthy food but spend it by the end of the deadline.

Okay.

I do have a couple of questions.

Uh I know we have uh people from the administration here, which I really appreciate, so we can uh get some answers.

The community and senior center improvements.

Uh we had allocated six million two hundred and fifty thousand.

Uh we've spent about almost three point nine million.

We're at sixty-two percent.

Could we get an update from if someone's here from uh that area community and senior center improvements uh advise where we're at, and again, I think the the concern of council is that we want to make sure this money is spent, and if not, we want to be prepared so that on December 15th, we're not running around trying to figure out where to take the uh money that's left over.

So sure.

Could you uh state your name for the record, please?

Josh Porter, manager of facilities.

Um so we do have quite a few projects going on, all of which are either started or getting started in the next couple of months.

So I've got uh 2.2 of the remaining 2.3 under contract currently with an estimated roughly over 200,000 still left going through a contract process.

So I'm right now showing a negative balance of over almost $50,000 on the ARPA to spend, which we'll supplement with our CIP in the 2026 budget.

Uh I have set six projects that are set to complete within August.

I have seven of the projects that are complete set to complete in September, 16 of them in October, and the ones I don't have timelines for are all one to two-week project timelines.

So nothing that is of concern or even close to that deadline that I've got set right now.

So essentially the senior centers will be done by the end of the year.

Correct.

Okay.

All right.

Um, and there won't be any that are not completed in terms of in other words, we've put money into like Eleanor Kale and other centers.

I'm just asking if there's any centers that we've not put any money into this year.

So Blocky, I know we put quite a bit.

Yep.

So we've done Believe Center, East Toledo Family Center, Family House, Chester's the Blocky, the Powell Building, Jefferson Senior Center, Eleanor Kale, Family House, Wayman Palmer, YMCA.

Yeah, so we have touched all of them.

All right, very good.

Okay, any questions from members?

Okay.

Uh I'm sorry, Vice uh Vice Chair Driscoll.

Thank you, Mr.

Chair.

I don't have any questions about that.

I think you're all set.

Um so two uh well, I guess three line items here, but two things that have been pretty stubborn on this ARPA report are the medical debt forgiveness program, which I don't think has appreciably changed.

Um, really since the beginning of the year.

The only correspondence we got from them was you know, just essentially said, yep, we're gonna be fine.

So there wasn't really wasn't any detail to it.

Are we uh able to dig into this at all?

It doesn't look I mean we've we have reached out to them for another update.

They're currently working with a physician's group that they expect to wrap up here at the end of this month was the last update that we got, and that would account for the remaining balance.

At the end of July.

Yeah, that was the last update we got.

I reached out to them again to see if anything shifted on the timeline, just waiting to hear back on that.

So you expect then by the September report that'll show 100 percent.

Unless I hear something new from them, the last update was they should wrap up by July.

Okay, what about the Metro Parks facility build out and the Metro Parks and the Riverwalk?

I think we do have some representatives that can speak to that in a little more detail.

One piece I can say on the facility build out.

Um there was one large invoice that got paid in July for over 200,000.

Um so that will we'll see a pretty sizable change in that one next month, but there'll still be a balance to spend.

Director Sellhorst is here.

You want to did you want to address the Metro Park?

Yes, if I could.

Uh Brandon Sowership Growth Officer.

Um, this is in uh reference to the particular line item Metro Parks Riverwalk line item.

Um there's about 1.2 million left uh to be reimbursed essentially.

So this is related to the portion of the riverwalk project that was built out along Water Street, so it was tied in with our construction project for the road reconstruction.

Um that project just closed out, and we're expecting an invoice for the remaining of that next month.

So I do not anticipate any issues with um funding that project in full well before the deadline.

Okay.

All right.

Um director, I don't know if you're uh uh familiar with the facility build-out for Starbase.

I'm not but I know someone who is.

Chief Osno.

Our distinguished Chief Fosno.

You could advise us on that, please.

Yes, I've been in regular contact with Metro Parks about this project throughout.

Um they've been very diligent in providing quarterly updates.

Um at their last quarterly update, they uh stated that they are at the punch out stage of this project.

So that means it's it's pretty much complete.

They just need to walk through with the contractor, identify any outstanding items, and then the final invoice um uh we expect probably in August to close out that project.

So uh the full balance um will be spent um to uh complete that project, they're they're right on track.

Okay.

Starbase, yep.

Very good.

Okay.

Councilwoman Dr.

Jones.

Thank you, Chair.

Actually, since Director Sellhorse is up here, and I don't know if Chief Clements wanted to come up here to give updates for the healthy food incentive.

Because I'm curious as you know where we're at with that too.

Yes, yes, I had a feeling that you might ask.

So um this is in regards to the line item healthy food incentive, the food systems hub.

So, as council may remember, um, this was originally allocated for the ECDI project at the Erie Street Market.

Unfortunately, due to changes in the federal funding landscape, that project um no longer went through, but we did use a portion of our ARPA dollars to reimburse ECDI for the architectural and engineering drawings that they had completed for the Erie Street Market.

So if anyone knows of an operator for a food hub, um we have a full AE package of redeveloping the Civic Center Auditorium uh for a food hall.

So we have those plans, um, which is great.

But there is about 355,000 dollars left um to be, I guess, redistributed to another project.

Um we've been working on a number of different opportunities because we wanted to keep this within the food uh systems, I guess, kind of um opportunity.

Um, as many of you know, and we've reported out of a previous finance committee hearing, um, we've been actively working with the Center for Innovative Food Technology to see if we can partner with them given their challenging uh funding opportunity or challenges that they're receiving right now to see if we can relocate the federal um knock kitchen uh to Toledo.

They um are working with uh Congresswoman Captor's office.

Um they have a earmark secured to do that work.

Unfortunately, that project is not gonna align with the timeline that we need to use these funds.

Um so we have been another project we've been actively pursuing, and thank you, uh Councilmember Jones, who's been actively helping me with this, um, is partnering with the um Toledo Lucas County Health Department.

Um, as you may remember, I think a line item on here, the small small market grants line item.

That was a line item of funding from ARPA that we used um to partner with the Toledo Lucas County Health Department to create an incentive program to partner with convenience stores in low to moderate income neighborhoods to stand up uh healthy food-related infrastructure and help educate them about the customers that um would purchase that food and all that goes into taking care of healthy food.

Um so there were six uh convenience stores that benefited from this first round.

I think we had over 15 applications for people that were interested, um, but just given the funding, we had enough funding for six.

Um that program's been extremely successful.

Happy to share the reports with you about the success of that program.

Um, but given the demand of the program, the interest of the health department to continue this effort into the future.

Um, we thought what a great opportunity to partner with them utilizing these funds to stand up another round of that program going forward.

So we would be able to with these funds assist another six local convenience stores, excuse me, with um acquiring the infrastructure that's needed to be able to host and sell healthy food.

Um again, this is all a part of our initiative to bring healthy food options to food desert areas within our city.

Um so happy to happy to send more information about the success of the original program, but it's it's really our goal to in a ordinance coming um in a future agenda to repurpose these funds to go specifically to the health department um to to implement that second phase of that program.

Excuse me.

Okay.

I'm sorry.

I apologize if I cut you off.

I didn't know that you did I cut you off earlier when I went to uh No, I'm sure good.

Thank you.

Thank you, Mr.

Chair.

How polite of you.

Uh Director Campbell, I've so I have two two more questions.

Uh the LED street lighting and the sidewalk replacement.

Do we have locations picked out for those two projects?

We're just waiting to do them, or what's sorry about that.

Um the LED, yep, there are three projects that were in the works and I think have received invoices that will spend the rest of that balance.

I'd have to double check where they are.

I don't recall offhand.

Okay.

Um and then with the sidewalk program.

Um of the amount in the sidewalk uh the 238 roughly that's remaining.

Um a portion of that, about 190,000 is on POs for work that's happening now.

Um and I think Director Fosnaw can weigh in on some of that as needed.

Um and then the remaining roughly 40,000 um will be used for the um sidewalk rescue grant program.

There's several applications um for that program that are being reviewed right now.

Um and there's plenty of applications to expend that final balance.

Um we'll know that within the next couple weeks.

When are those applications due?

Um I think they've already been due.

Um they've been coming in, they're reviewing them right now.

So when will we select uh they have to meet certain eligibility requirements within the next two weeks?

I believe they'll be able to have gone through them.

Okay.

All right, thank you very much.

Thank you, Vice Chair.

Um I want to go back to the medical debt forgiveness program.

I believe you said they were working on uh paying some uh debts to a physician's group.

They were working on a final portfolio, the last update we got um working with a physician's group that you know if that was successful, then that would expend the entire remaining balance.

Okay.

All right.

Okay.

And uh and then I want to clarify uh with uh director Sellhorst, did you say that you expected 350,000 to be left over from the Healthy Food Incentive program?

Yeah, the exact number is 355,297 dollars.

That's the remaining balance that will be reallocated to the health department.

Okay, all right, for a similar program.

To write to do the exact same program, just another round of it.

Okay.

All right.

I appreciate that.

Umited way uh 211 services.

Uh we've still got about uh 70,000 left over on that.

They invoice monthly about 833 dollars.

And so we will just continue to pay that each month.

Don't have any concerns about spending that.

Okay.

All right.

Any other uh I'm sorry, uh Council Woman and Dr.

Jones.

No, actually, you took my question about United Way and 211.

So I I digress.

Thank you.

Sure, thank you.

Okay.

Anything any other questions on ARPA?

Uh also on the um administrative expenses.

Uh I believe we all you allocated 245,000 for that.

Uh and you've got uh quite a bit left over, about 210,000 is left over.

What's gonna happen with that?

So we'll use a little bit more of it at um as we close out the project, but we haven't needed as much as we originally estimated.

Um we haven't used really a lot of consulting.

Um we've been able um to work, you know, with free webinars or some even free consulting through some of those webinars.

Um and then on the reporting side of it, um, you know, our team in finance and law has been working on it, so it hasn't taken as much administrative dollars.

Um so this would be one of those areas where if if we're not spending everything that we originally estimated for administrative dollars, they can be allocated towards something else that was previously obligated by the deadline.

So we'd have a recommendation on that um probably in September.

Okay, great.

Thank you.

Uh Vice Chair Driscoll.

Thank you, Mr.

Chair.

One last question.

Um some of these projects that it sounds like are going to be over what we've allotted for them.

What do we have accounting controls in place to stop spending if we or are they are they budgeted for through in our capital fund budget for this year?

There um right now, the only one where we could potentially need some additional funding would be in that community and senior center area, which then we would use the CIP uh dollars that were allocated to cover that.

But were they budgeted for in our 2026 budget?

Are we gonna have to make an adjustment?

I can't remember if it was 2026, but there definitely wasn't a previous year and the CIP dollars would still be able to be used.

Okay, thank you.

Okay, also um will are we will will you come back to council in terms of if there's funding still available for another organization?

Will you be coming back to council to ask for authorization?

We would to make changes we would have to come back to council, but it would still have to be for only for things that are in the existing plan and obligated by the deadline, so it wouldn't be any new programs that would come forward.

Right.

But I mean if for example, you have money left over in one area and you want to go to a a similar organization to get that money.

Won't you have to come back to us so that we vote on that, or is that part of the ARPA regulations that you won't have to come back to us?

Um it it would depend on the circumstance of each individual project and how it was originally authorized.

As an example, the health department um that Director Sellhorst uh referenced that there would be about 350,000 left over.

Does that necessitate them coming back, the administration coming back to us to vote on that?

Yes.

Okay.

That's that's what I was driving at.

Okay.

Very good.

Okay.

Um I know we have a number of of uh uh administrative people here, directors and commissioners and managers.

Is there anyone that would care to address the committee on ARPA?

Anything that we uh need to know or anything like that.

I think we've covered it.

I just want to make sure.

I appreciate all of you being here today uh to answer these questions.

Uh because it helps us.

We just want to make sure, as I said earlier, that we we have a plan in place and that we're not uh running around uh on December 15th trying to figure out where this money is gonna go because obviously we do not want to send it back to Washington.

We want to make sure that it's benefiting all of our citizens uh and the programs that we have.

So uh councilwoman and Dr.

Joe.

Actually, I wanted to highlight the point that you made as far as figuring out alternative plans.

Is there a particular deadline that you're giving certain departments for funding that you don't see being spent or allocated at that time in will we we're looking at it, you know, into September to have any you know final um review or changes in the timeline updated and if we do need to make adjustments at that point, bring them forward um probably towards the end of September, then that we have the full quarter to process any remaining um payments invoices and make sure everything is spent.

So within that request, are you also asking for alternative programs that they can put the funding in, or is just more of here are the invoices that should take care of the total?

We're really focusing on all the existing programs there and just making sure we have the timeline in place to spend everything.

Okay, because I I think that will be valuable information, not just you know what monies are already allocated or waiting for invoices, but also if something falls through, then there's another existing program that is similar to the original ARPA requests that would be up for consideration, then that can give a clearer direction of where how council can help, how we can have you know things of that nature.

I think that will be helpful in because we're yeah, about to be August.

So it's countdown, and you're expecting this at the end of September.

So October, yeah.

Okay.

So just that additional information would help as well too.

Thank you.

Thank you, Chair.

Thank you, uh Councilwoman.

Um anything else on ARPA?

If not, uh anything from finance department otherwise?

Uh no, just and thank you for the team here uh supporting us on the ARPA presentation.

Appreciate everyone's attendance here today.

Okay, with that we'll the next item on the agenda is the city auditors, a monthly report.

Good afternoon, uh Mr.

Volski.

Good afternoon, John Ravalsky, City Auditor.

I'll provide a monthly update uh since we last met.

Uh I'll start with the grass cutting audit.

That's progressing well.

I did ride alongs with uh quality control specialist down in Victoria, and that was really great to see their process and how they go out and look at different cuts and how they work in their systems.

Uh I also had a pretty lengthy meeting uh with uh the manager Lynn, and that was uh good info too.

And based on those uh meetings, I did ask for additional data, which I'm waiting to get back now.

So once that's in uh I should be able to finalize the report.

Uh second, I'm working on a new special project to further look into the utilities receivables.

Uh it's going into a little bit more data um behind the quality of those receivables and certain um characteristics of those receivables.

And I plan to provide that report to council.

Uh lastly, I'm also working on the investments review, and that's underway and I'm waiting on certain data there.

Uh let me know if you have any questions.

Okay, thank you.

Any questions?

Um any idea when the uh the special DPU audit that you're conducting when that might be concluded?

I have a meeting with uh Chief Robson tomorrow, so that should uh help help me determine the timeline a little bit better based on how that meeting goes, but I hope you know the next month.

Great.

Okay, and obviously once that's done, if you could share it, I would like all of council members uh to see that the results of that.

I think it would be very helpful for us.

Uh one of the things that you're gonna do is identify certain areas where uh the delinquencies have occurred, uh some demographic information and so forth, so we can kind of plan for the future.

That's right.

Okay, great.

Thank you very much.

Um with that, is there any other business before the uh committee?

I know that uh Richard Arnos would like to uh come for Richard Arnold would like to come forward and good afternoon, sir.

Uh Richard Arnold, thank you for the opportunity to speak.

I was gonna bring this up at safety committee next week, and I understand that has been canceled and with the summer schedule.

You don't have another meeting until August the 18th.

So this is concerning an expenditure of city funds.

Uh last November the 25th, you allocated 280,000 for the construction of a fence that's going to run on the west side of Huron Street from Orange Street to Cherry Street.

This is what's known as the TARDA hub.

Um I did testify at that time I was concerned about the effect this is going to have on TARDA passengers.

If you're not familiar with the TARDA hub, uh up and down uh Huron Street, you have buses line up.

It's no big deal, you know, getting a connecting bus, it only takes a couple of minutes.

In inclement weather, you can stand inside of the TARDA facility, you can see all the buses as they come in.

Now that's not the case.

The buses have been rerouted to Superior Street.

This is not good at all.

I mean, if you are a senior citizen coming in and you've got to catch a connecting bus, you got problems.

You got a long ways to go and you've got a short time to get there, and you will be walking on sidewalks that are even more congested than they usually are.

Should you be using a wheelchair, a walker, uh cane, a scooter, whatever, it it's going to be very, very difficult.

And here's my big problem.

On Superior Street where the buses are lining up, there's nothing there.

There are no benches, there are no shade trees, there are no shelters.

Uh this is going to take until November, assuming it's on time.

Uh there's nothing, there's nothing to protect people there from the elements.

We've got lots more hot, sweltering days to go to be followed by cold and rainy days in the fall.

And who knows if this runs over schedule.

Uh we may be seeing snowfall.

I know it's difficult to think about snowfall in July.

But there is just nothing.

I was over there at about three o'clock, and yeah, I saw senior citizens sitting on the grass because there's just no place else for them to sit.

And it's just not an option for them to wait inside of the the TARDA facility because you can't see when your bus arrives.

If they're coming in on superior, you can't see that.

So uh TARDA has had seven months to do something about this, and I have had some conversations with TARDA personnel.

It's usually along the line of I'm not in the loop and I don't know anything about this, but I am concerned about senior citizens and disabled who have a much more difficult time now.

And I'm asking this city, are there any I don't know what the logistics are?

Are there any temporary benches, temporary shelters that we could put on Superior Street for people to wait for their buses?

Because I'm really happy.

I have some safety concerns.

So I just want to go on record with that.

I'm gonna continue talking to TARDA people.

You know, can you guys please do something?

I do not want to see senior citizens sitting on the grass because there's just no place else to sit.

Thank you.

So let me I want to just clarify uh what you're saying.

So you're saying there TARDA is building a fence.

It's going to stretch from Orange Street to Cherry Street, and I'm told this will be November at the earliest.

So we've got quite a few more months to go.

This is on the Huron Street.

This is on Huron Street.

So half of the buses that used to line up on the west side of Huron are now lined up on Superior.

There's nothing over there, no benches, no shade trees, no shelters.

Okay.

It's not an ideal situation.

I I testified about this last uh November.

It's worse than I thought.

And I don't think it's any secret that you have a lot of people hanging around TARDA that aren't there to catch a bus.

It's been that way since we had the TARDA loop years ago.

So the sidewalks are even more congested than they usually are.

And for elderly and disabled people with mobility issues, it's tough.

Right?

No, it's pretty it's pretty bad.

All right.

So uh have you had an opportunity to talk to TARDA about them providing benches?

They haven't done anything.

They haven't said anything.

I have I haven't talked to the TARDA management, but I've I've talked to I've talked to a number of people.

Well I'll I'll follow up with Turn, I'll call them and not sure what department would handle.

On the superior street side.

On the Superior Street side, and this is going to continue until November, possibly longer.

Okay.

All right.

I will uh contact TART and see what can be done.

I appreciate you bringing this to our attention.

Thank you.

Thank you.

All right.

Any other is there anyone else who would care to address the Finance Committee?

Seeing no other business.

Okay.

Next meeting will be August 26, Wednesday, August 26 at four o'clock.

Seeing no other business, we stand adjourned.