Items related to our budget recommendations for 2026 and 2027.

We're at a very preliminary stage, but thought this was really appropriate an appropriate time to check in with the council on our progress and some issues that we are working through.

The first of all, what we'll do is we will share with you, and we've already sent it out and it's available to the public as well.

The pillars and the goals and the work that's been done towards implementation of those.

You'll notice uh in this document a difference from previous documents, and that now there are tactics in order to achieve the strategies.

Uh so we'll go through that briefly with you.

Be glad to answer any questions.

Again, work in progress.

Um we'll finalize it when we get to the budget.

Um, but hopefully it's reflective of your uh desires based on uh previous uh direction.

After that, we'll then go through some uh budget reduction options.

Council had um instructed us to do two budgets.

Um so we basically have a base budget, and then we have some targets for reductions based on a uh different scenario, which would limit our property tax revenue.

Uh we have some preliminary thoughts on not just um what that looks like from a uh revenue and expenditure standpoint, but what it would take in order for us to be balanced uh in both cases.

So we have some uh items for you to discuss and give us some direction on uh again preliminary, so um appreciate your thoughts uh before we go further in the budget process.

And the last, based on your discussion um uh during previous workshops is a uh thought piece regarding a local sales tax.

So um there's a lot of information that isn't in the attached report, and then we'll summarize that for you in today's presentation.

So a lot of moving pieces, and with that, Mayor, we're ready to get started.

Is it Shana?

Is it on the next slide?

Okay, just oh great.

Well, good morning, everyone.

I'm Elizabeth Goldree from the finance department, and um, as the city manager mentioned, we're having a budget workshop today.

Um, and he I will skip this slide with the overview because I think he did a great job of describing all of um the outline for the presentation today.

Um there's been a lot of strategic planning that's been ongoing this year, and um this graphic here on slide on this slide, slide 11, is um I think sometimes when we have these workshops every month, it's good to just provide a little context to where we've been so far and where we find ourselves in the process.

So at this point um in 2025, um there's been a lot of work that's happened to date, but at this point, um the tactics have been drafted, and those and the materials you have, and then the next step is um working towards the performance management framework and building the capacity in the organization for that, and that will be really illuminating perhaps in for the budget process this year, but definitely for the budget process next year.

Um at the workshop in April, we shared some um pillars, goals, and strategies, and we also shared those at all six of the dab meetings that we attended.

I think we shared an example of three of them.

Um and I felt that the feedback that we got at the DAB meetings that those um pillars, goals, and strategies resonated with the community, so I feel like that's that's a good sign of progress moving forward.

Okay, so what these things, if you're new to this pillar goal strategy, tactic language, um, the pillars are the really high-level elements of our mission statement.

There was a lot of work done on that early in the year, and the same is true of the goals, and then the strategies were shared last time, and then this time um we're diving into the tactics, and as you can imagine, um there are there are 46 strategies, so every strategy has at least one tactic.

So I think there's about 60 tactics, so there are a lot of them.

And so there's a handout that has been distributed, and it includes um the tactics, and a lot of them include time-bound elements to them.

So this will happen in 2025, or that will happen in 2026, or by this point in the process, this will occur.

Um, and so they're they're pretty concrete.

So I guess this would be the right time to go through those.

Just starting, so it looks I I can see this one.

Starting on that page.

So for example, the first pillar that we have is the well-run city pillar.

So the goals are over on the left side.

And you'll also notice with the goals that there's some high-level outcome measures with each of them.

On the well-run city, the goal 1.1, it's related to that goal is really related to financial condition.

So that outcome measure is related to fund balance.

But then on some of the others, what we've done in that column is that the outcome measures are related to the community city survey.

So for these high level goals that we're using feedback from the community to guide to determine how that implementation is going.

But as you go through each of the tactics, for example, the first one, all departments will inventory activities and determine their placement on the cost recovery pyramid by 2025.

So we're getting into things at this point that are very concrete, very actionable, and time bound.

So should we go through all 60 of them?

So I don't know if there's any particular goals or strategies that are more interest than others.

But we have a lot of these tactics.

I appreciate the work that the departments have done to get us to this point.

Again, the tactics are extremely important because this is how we're going to implement your goals and your strategies.

And we're open to any feedback you have.

I didn't expect we'd have a real robust discussion over 60 tactics today.

But if there are any that jump off the page, more than happy to visit about those.

Also more than happy as on an ongoing basis to discuss those.

I meet with all of you weekly and love to have any discussion on those items.

And ultimately, we'll bring this back for uh your discussion as we start to finalize the budget.

One thing that's important is that this these uh tactics help shape the budget, and so your priorities are reflected as we are drafting the budget recommendations.

We're trying to get priority to these tactics and recognizing those that aren't necessarily in alignment with your strategic initiatives so far.