{ "meetingId": "2026-10-07-ws-1", "title": "City Council Work Session - Fall TAO", "displayTitle": "City Council Work Session - Fall TAO", "date": "2026-10-07T09:00:00-07:00", "duration": 183, "videoUrl": "https://www.youtube.com/watch?v=s2KjOoqTUhE", "videoId": "s2KjOoqTUhE", "agendaUrl": "https://www.portland.gov/auditor/council-clerk/events/2026/10/7/city-council-work-session", "agendaItems": [], "summary": "**The Portland City Council held an informational work session on the Fall Technical Adjustment Ordinance, taking no vote, where staff previewed a reclassification of $1.08 billion from contingency to long-term reserves and councilors flagged a workforce-training amendment, a Moda Center set-aside, and the privatization of the Portland Tennis Center.**\n\nThe session, led by Council President Jamie Dunphy (District 1), was a preview only; the ordinance and two companion documents — a financial-policy ordinance and a budget-calendar resolution — go to the Committee of the Whole next week, with first and second readings in the last two weeks of October ([00:07:38](meeting:2026-10-07-ws-1@00:07:38)). Chief Financial Officer Jonas Biery described a \"simpler and smaller fall TAO\" and said the city is \"essentially on target with the adopted budget.\"\n\n## Reclassifying $1.08 billion from contingency to reserves\n\nThe largest number in the package is a bookkeeping change. The TAO proposes to move **$1.08 billion** now budgeted as contingency into a category called reserve for future expenditure ([00:38:16](meeting:2026-10-07-ws-1@00:38:16)). Allegra Wilhite, Executive Director of the Tax Supervising and Conservation Commission, explained the distinction in Oregon budget law: contingency covers spending you expect this year for an unknown purpose, while a reserve for future expenditure is money saved for a known purchase in a later year. The Department of Revenue advised that such reserves are \"not forbidden\" in any fund. Budget Director Ruth Levine said the money stays accessible through a supplemental if a need arises sooner. The largest single shift is the Portland Clean Energy Fund, where about **$300 million** tied to a five-year spending plan moves to the reserve category. Biery said the total figure the city reports as appropriated each year will drop by $1.08 billion as a result.\n\nCouncilor Eric Zimmerman (District 4) credited the alignment work, saying the city had been \"using these words incorrectly\" across its bureaus for the first two years of the new government.\n\n## Where the general fund money lands\n\nLevine walked through balancing the general fund. Prior-year reporting showed about **$16.8 million** in general fund underspending, under 2% of a roughly $875 million allocation ([00:29:12](meeting:2026-10-07-ws-1@00:29:12)), which she tied in part to the prior administration's hiring freeze and contract restrictions. A starting balance of about $14.7 million is drawn down through required adjustments, $4.6 million in encumbrance carryovers, and policy set-asides, leaving $1.6 million the TAO proposes to put into unrestricted contingency ([01:40:31](meeting:2026-10-07-ws-1@01:40:31)).\n\nCouncilor Angelita Morillo (District 3) challenged that use. She noted the July supplemental borrowed roughly **$9.96 million** from general fund contingency to be repaid in the spring, and asked why $5 million was going to reserves instead of paying that down ([01:54:41](meeting:2026-10-07-ws-1@01:54:41)). Biery said the administration follows existing policy and that waiving it would be council's decision.\n\n## A new business-tax reserve, and Smith's procedural objection\n\nThe package creates a business license tax stabilization reserve. Biery said the tax brings in roughly **$220 million**, nearly 30% of general fund discretionary revenue, and can fall 15 to 20% in a single year. The policy targets a 15% reserve, funded from the first third of available discretionary money; even with the proposed transfer, the reserve stays under 3% ([01:20:33](meeting:2026-10-07-ws-1@01:20:33)).\n\nCouncilor Loretta Smith (District 1) objected to adopting the policy and the TAO together: \"That's really uncommon,\" she said, arguing council should change the policy first and write the ordinance to match ([01:17:51](meeting:2026-10-07-ws-1@01:17:51)). Biery said both documents go through the Finance and Governance Committee next week. Smith also pressed on $10.5 million in new grant appropriations, calling it \"egregious\" that bureaus did not flag the grants earlier, and reminded staff of her prior requirement that new grants be reported within 15 days: \"You waited 3 months and then called the ordinance\" ([02:07:12](meeting:2026-10-07-ws-1@02:07:12)). Biery and Levine said the grants are entirely grant-funded, not general fund, and arrive throughout the year.\n\n## A workforce-training amendment and the Moda Center\n\nCouncilor Elana Pirtle-Guiney (District 2) previewed an amendment she will bring with Zimmerman to the Community Opportunities and Enhancement Program, which funds pre-apprenticeship training. She said the program was moved from Prosper Portland to city bureaus last year and then \"was not funded and was stalled.\" The TAO releases **$350,000**, and her amendment would add **$600,000**, bringing the programs to just under 50% of prior funding ([02:11:06](meeting:2026-10-07-ws-1@02:11:06)). The money comes from the co-op's own construction-surcharge line and does not touch the general fund.\n\nSeparately, the package holds **$2.5 million** in capital set-aside for Moda Center capital needs. Pirtle-Guiney asked whether that was for a full remodel or ongoing upkeep; Biery said it keeps \"optionality open\" for a larger redevelopment and that the building will need significant city investment either way.\n\n## The Portland Tennis Center and shelter carryover\n\nCouncilor Sameer Kanal (District 2) raised a $200,000 request for sidewalk repairs tied to the Portland Tennis Center, saying council was told it would vote on the facility's transfer but that it \"got privatized\" during council recess \"after we were promised that it was going to be brought back to council,\" with no guarantee of continued free public access ([03:00:50](meeting:2026-10-07-ws-1@03:00:50)). City Administrator Raymond C. Lee said, \"I'll make sure I follow up personally on that.\" Kanal also flagged a shelter program that relies on a **$2.76 million** carryover, calling it \"the exact thing we were trying to avoid last year\"; Biery agreed that is the norm but cited multi-jurisdictional transfer complications.\n\n## Budget calendar and engagement\n\nDunphy framed the calendar resolution as a roadmap for the next council president, noting he will not hold the office next year. The mayor's proposed budget is due April 20, with amendments to the City Budget Office by May 11 and a final adopted-budget vote June 17 ([02:28:28](meeting:2026-10-07-ws-1@02:28:28)). Pirtle-Guiney flagged that the April 22 proposed-budget hearing falls during Passover, which begins April 21; Dunphy said, \"Good flag. Thank you. We'll take a look at that\" ([02:39:02](meeting:2026-10-07-ws-1@02:39:02)).\n\nLaura Oppenheimer, Chief Communications Officer and Interim Chief Engagement Officer, presented a phased engagement plan, including the first Portland Insights Survey this council has received, run with Portland State University. Zimmerman said city employees have used budget public-comment periods, sometimes forming a majority, and urged a separate employee channel to protect public slots ([02:52:35](meeting:2026-10-07-ws-1@02:52:35)). Lee said recruitment for a permanent Chief Engagement Officer will begin in the new calendar year.\n\n## What's next\n\nThe TAO ordinance, the financial-policy ordinance, and the calendar resolution all go to the Finance and Governance Committee / Committee of the Whole next week, where Pirtle-Guiney and Zimmerman's $600,000 co-op amendment will be pre-filed and public. First and second readings are set for the last two weeks of October. Staff promised spreadsheets detailing all contingencies, reserves, grants, and decision packages later this week, and will follow up with Kanal on the Portland Tennis Center, shelter, and health-fund questions. The City Administrator's budget report is estimated for February 19 and is expected to include potential next-year budget actions.", "summaryText": "The Portland City Council held an informational work session on the Fall Technical Adjustment Ordinance, taking no vote, where staff previewed a reclassification of $1.08 billion from contingency to long-term reserves and councilors flagged a workforce-training amendment, a Moda Center set-aside, and the privatization of the Portland Tennis Center.\n\nThe session, led by Council President Jamie Dunphy (District 1), was a preview only; the ordinance and two companion documents — a financial-policy ordinance and a budget-calendar resolution — go to the Committee of the Whole next week, with first and second readings in the last two weeks of October (00:07:38). Chief Financial Officer Jonas Biery described a \"simpler and smaller fall TAO\" and said the city is \"essentially on target with the adopted budget.\"\n\nThe largest number in the package is a bookkeeping change. The TAO proposes to move $1.08 billion now budgeted as contingency into a category called reserve for future expenditure (00:38:16). Allegra Wilhite, Executive Director of the Tax Supervising and Conservation Commission, explained the distinction in Oregon budget law: contingency covers spending you expect this year for an unknown purpose, while a reserve for future expenditure is money saved for a known purchase in a later year. The Department of Revenue advised that such reserves are \"not forbidden\" in any fund. Budget Director Ruth Levine said the money stays accessible through a supplemental if a need arises sooner. The largest single shift is the Portland Clean Energy Fund, where about $300 million tied to a five-year spending plan moves to the reserve category. Biery said the total figure the city reports as appropriated each year will drop by $1.08 billion as a result.\n\nCouncilor Eric Zimmerman (District 4) credited the alignment work, saying the city had been \"using these words incorrectly\" across its bureaus for the first two years of the new government.\n\nLevine walked through balancing the general fund. Prior-year reporting showed about $16.8 million in general fund underspending, under 2% of a roughly $875 million allocation (00:29:12), which she tied in part to the prior administration's hiring freeze and contract restrictions. A starting balance of about $14.7 million is drawn down through required adjustments, $4.6 million in encumbrance carryovers, and policy set-asides, leaving $1.6 million the TAO proposes to put into unrestricted contingency (01:40:31).\n\nCouncilor Angelita Morillo (District 3) challenged that use. She noted the July supplemental borrowed roughly $9.96 million from general fund contingency to be repaid in the spring, and asked why $5 million was going to reserves instead of paying that down (01:54:41). Biery said the administration follows existing policy and that waiving it would be council's decision.\n\nThe package creates a business license tax stabilization reserve. Biery said the tax brings in roughly $220 million, nearly 30% of general fund discretionary revenue, and can fall 15 to 20% in a single year. The policy targets a 15% reserve, funded from the first third of available discretionary money; even with the proposed transfer, the reserve stays under 3% (01:20:33).\n\nCouncilor Loretta Smith (District 1) objected to adopting the policy and the TAO together: \"That's really uncommon,\" she said, arguing council should change the policy first and write the ordinance to match (01:17:51). Biery said both documents go through the Finance and Governance Committee next week. Smith also pressed on $10.5 million in new grant appropriations, calling it \"egregious\" that bureaus did not flag the grants earlier, and reminded staff of her prior requirement that new grants be reported within 15 days: \"You waited 3 months and then called the ordinance\" (02:07:12). Biery and Levine said the grants are entirely grant-funded, not general fund, and arrive throughout the year.\n\nCouncilor Elana Pirtle-Guiney (District 2) previewed an amendment she will bring with Zimmerman to the Community Opportunities and Enhancement Program, which funds pre-apprenticeship training. She said the program was moved from Prosper Portland to city bureaus last year and then \"was not funded and was stalled.\" The TAO releases $350,000, and her amendment would add $600,000, bringing the programs to just under 50% of prior funding (02:11:06). The money comes from the co-op's own construction-surcharge line and does not touch the general fund.\n\nSeparately, the package holds $2.5 million in capital set-aside for Moda Center capital needs. Pirtle-Guiney asked whether that was for a full remodel or ongoing upkeep; Biery said it keeps \"optionality open\" for a larger redevelopment and that the building will need significant city investment either way.\n\nCouncilor Sameer Kanal (District 2) raised a $200,000 request for sidewalk repairs tied to the Portland Tennis Center, saying council was told it would vote on the facility's transfer but that it \"got privatized\" during council recess \"after we were promised that it was going to be brought back to council,\" with no guarantee of continued free public access (03:00:50). City Administrator Raymond C. Lee said, \"I'll make sure I follow up personally on that.\" Kanal also flagged a shelter program that relies on a $2.76 million carryover, calling it \"the exact thing we were trying to avoid last year\"; Biery agreed that is the norm but cited multi-jurisdictional transfer complications.\n\nDunphy framed the calendar resolution as a roadmap for the next council president, noting he will not hold the office next year. The mayor's proposed budget is due April 20, with amendments to the City Budget Office by May 11 and a final adopted-budget vote June 17 (02:28:28). Pirtle-Guiney flagged that the April 22 proposed-budget hearing falls during Passover, which begins April 21; Dunphy said, \"Good flag. Thank you. We'll take a look at that\" (02:39:02).\n\nLaura Oppenheimer, Chief Communications Officer and Interim Chief Engagement Officer, presented a phased engagement plan, including the first Portland Insights Survey this council has received, run with Portland State University. Zimmerman said city employees have used budget public-comment periods, sometimes forming a majority, and urged a separate employee channel to protect public slots (02:52:35). Lee said recruitment for a permanent Chief Engagement Officer will begin in the new calendar year.\n\nThe TAO ordinance, the financial-policy ordinance, and the calendar resolution all go to the Finance and Governance Committee / Committee of the Whole next week, where Pirtle-Guiney and Zimmerman's $600,000 co-op amendment will be pre-filed and public. First and second readings are set for the last two weeks of October. Staff promised spreadsheets detailing all contingencies, reserves, grants, and decision packages later this week, and will follow up with Kanal on the Portland Tennis Center, shelter, and health-fund questions. The City Administrator's budget report is estimated for February 19 and is expected to include potential next-year budget actions.", "summaryLede": "The Portland City Council held an informational work session on the Fall Technical Adjustment Ordinance, taking no vote, where staff previewed a reclassification of $1.08 billion from contingency to long-term reserves and councilors flagged a workforce-training amendment, a Moda Center set-aside, and the privatization of the Portland Tennis Center.", "sections": [ { "title": "Introduction and Overview", "startTime": "00:07:38.658", "endTime": "00:26:39.807", "items": [ { "title": "Welcome and Agenda Preview", "startTime": "00:07:38.658", "endTime": "00:15:09.379" }, { "title": "Introduction to the Fall Technical Adjustment Ordinance (TAO)", "startTime": "00:15:09.379", "endTime": "00:26:39.807" } ] }, { "title": "Year-End Financial Review", "startTime": "00:26:39.807", "endTime": "01:02:53.420", "items": [ { "title": "Prior Year Actuals and Fund Balances", "startTime": "00:26:39.807", "endTime": "00:33:57.752" }, { "title": "Budget Tracking Improvements: Reserves vs. Contingency", "startTime": "00:33:57.752", "endTime": "01:02:53.420" } ] }, { "title": "Realignments and Financial Policies", "startTime": "01:02:53.420", "endTime": "01:40:54.238", "items": [ { "title": "Core Services Realignment", "startTime": "01:02:53.420", "endTime": "01:10:40.921" }, { "title": "Financial Stabilization Reserve Policies", "startTime": "01:10:40.921", "endTime": "01:40:54.238" } ] }, { "title": "Proposed TAO Actions", "startTime": "01:40:54.238", "endTime": "02:17:17.672", "items": [ { "title": "Review of Specific Fall TAO Adjustments", "startTime": "01:40:54.238", "endTime": "02:11:30.792" }, { "title": "Clean Air Construction and Council Amendments", "startTime": "02:11:30.792", "endTime": "02:17:17.672" } ] }, { "title": "FY 2027-28 Budget Development", "startTime": "02:17:17.672", "endTime": "03:02:22.371", "items": [ { "title": "Process Improvements and Budget Calendar", "startTime": "02:17:17.672", "endTime": "02:42:39.181" }, { "title": "Public and Employee Engagement Plan", "startTime": "02:42:39.181", "endTime": "02:56:47.784" }, { "title": "Council Q&A and Discussion", "startTime": "02:56:47.784", "endTime": "03:02:22.371" } ] } ], "cues": [ { "id": "cue-1", "start": 458.658, "end": 460.629, "text": "Good afternoon, colleagues.", "speaker": "Jamie Dunphy" }, { "id": "cue-2", "start": 460.71, "end": 464.609, "text": "Members of the council and the general public, I'm calling to order this work session of the Portland City Council.", "speaker": "Jamie Dunphy" }, { "id": "cue-3", "start": 464.673, "end": 468.412, "text": "It is 2:01 PM on Wednesday, October 7th.", "speaker": "Jamie Dunphy" }, { "id": "cue-4", "start": 469.824, "end": 474.188, "text": "Colleagues, welcome once again to the budget, the topic that never stops giving.", "speaker": "Jamie Dunphy" }, { "id": "cue-5", "start": 475.087, "end": 481.281, "text": "Uh, we're here today to kick off our discussion of the Fall Technical Adjustment Ordinance, known colloquially here as the Fall TAO.", "speaker": "Jamie Dunphy" }, { "id": "cue-6", "start": 482.308, "end": 488.389, "text": "Uh, to preview briefly the process ahead, the fall supplemental budget has been filed and is referred to the Committee of the Whole.", "speaker": "Jamie Dunphy" }, { "id": "cue-7", "start": 489.207, "end": 494.512, "text": "As with all items referred by my office, it is visible to councilors and the public on the council documents page.", "speaker": "Jamie Dunphy" }, { "id": "cue-8", "start": 495.538, "end": 499.305, "text": "Today's work session is intended to do the major informational work.", "speaker": "Jamie Dunphy" }, { "id": "cue-9", "start": 499.641, "end": 506.742, "text": "By the end of today, we should have a strong shared understanding of the goals and the content of the TAO as proposed by the administration.", "speaker": "Jamie Dunphy" }, { "id": "cue-10", "start": 507.976, "end": 516.535, "text": "In these 3 hours, staff will walk us through the ordinance as well as discuss and ask questions in preparation for the detailed work that will happen in the Committee of the Whole.", "speaker": "Jamie Dunphy" }, { "id": "cue-11", "start": 517.659, "end": 519.57, "text": "Next week, we will take the item up in committee.", "speaker": "Jamie Dunphy" }, { "id": "cue-12", "start": 520.228, "end": 526.714, "text": "The committee is the place— is the time and the place for us to debate and adopt any major amendments to the ordinance authored by councilors.", "speaker": "Jamie Dunphy" }, { "id": "cue-13", "start": 527.549, "end": 535.464, "text": "Assuming that ordinance passes from committee, we will have agenda time held on the last 2 weeks of October in full council for the first and second readings.", "speaker": "Jamie Dunphy" }, { "id": "cue-14", "start": 536.058, "end": 542.448, "text": "This is intended as a time for smaller tweaks and changes in response to public testimony on the document that has come out of committee.", "speaker": "Jamie Dunphy" }, { "id": "cue-15", "start": 543.507, "end": 555.032, "text": "As I've said many times in this room, one of the most important stories of the first 2 years of the budget process under the new form of government is the steady transition in how documents that become— that come before council are developed before we see them.", "speaker": "Jamie Dunphy" }, { "id": "cue-16", "start": 555.769, "end": 560.321, "text": "A lot of last year's fall TAO process was spent in discussion about carryover encumbrances.", "speaker": "Jamie Dunphy" }, { "id": "cue-17", "start": 561.155, "end": 565.995, "text": "Bureaus still basically had latitude to set their own terms as to what was encumbered carryover and what was not.", "speaker": "Jamie Dunphy" }, { "id": "cue-18", "start": 566.508, "end": 570.307, "text": "As we'll hear early in the presentation, the encumbrance policy has been tightened.", "speaker": "Jamie Dunphy" }, { "id": "cue-19", "start": 571.078, "end": 578.384, "text": "We are slowly and continually moving this city government from a basket of quasi-independent bureaus to a single government.", "speaker": "Jamie Dunphy" }, { "id": "cue-20", "start": 578.962, "end": 579.925, "text": "We're not there yet.", "speaker": "Jamie Dunphy" }, { "id": "cue-21", "start": 580.471, "end": 583.859, "text": "There will be more problems, and we are absolutely going to talk about them.", "speaker": "Jamie Dunphy" }, { "id": "cue-22", "start": 584.245, "end": 588.323, "text": "But I think it's a good sign that the problems of this year are not the same problems we had last year.", "speaker": "Jamie Dunphy" }, { "id": "cue-23", "start": 589.174, "end": 590.459, "text": "Okay, enough fellowship.", "speaker": "Jamie Dunphy" }, { "id": "cue-24", "start": 590.94, "end": 596.464, "text": "CFO Biery and Budget Director Levine will be walking us through this presentation today.", "speaker": "Jamie Dunphy" }, { "id": "cue-25", "start": 596.785, "end": 598.166, "text": "The presentation is in 3 parts.", "speaker": "Jamie Dunphy" }, { "id": "cue-26", "start": 598.294, "end": 601.297, "text": "We will take a break midway through the second section around 3:30.", "speaker": "Jamie Dunphy" }, { "id": "cue-27", "start": 601.93, "end": 606.419, "text": "And if and when we get to the budget calendar, I'll offer some additional framing and an update from my office.", "speaker": "Jamie Dunphy" }, { "id": "cue-28", "start": 606.549, "end": 608.429, "text": "With that, Jonas and Ruth, take it away.", "speaker": "Jamie Dunphy" }, { "id": "cue-29", "start": 610.07, "end": 610.504, "text": "Great.", "speaker": "Jonas Biery" }, { "id": "cue-30", "start": 611.213, "end": 612.131, "text": "Thank you, Council President.", "speaker": "Jonas Biery" }, { "id": "cue-31", "start": 612.179, "end": 614.61, "text": "For the record, Jonas Biery, Chief Financial Officer.", "speaker": "Jonas Biery" }, { "id": "cue-32", "start": 614.836, "end": 617.782, "text": "And thank you for the tee-up regarding what we expect.", "speaker": "Jonas Biery" }, { "id": "cue-33", "start": 617.831, "end": 627.029, "text": "And yeah, just to lean into that, you know, we're hoping that this space is really providing a preview for you of some of the key information.", "speaker": "Jonas Biery" }, { "id": "cue-34", "start": 627.994, "end": 637.897, "text": "And opening up some of that initial dialogue so we can hopefully make more— most efficient use of our time at Finance and Governance Committee next week, and then ultimately the 2 council meetings at the end of October.", "speaker": "Jonas Biery" }, { "id": "cue-35", "start": 639.772, "end": 644.88, "text": "Thank you, Council President, for teeing up some of the improvements that we've talked about.", "speaker": "Jonas Biery" }, { "id": "cue-36", "start": 644.993, "end": 646.749, "text": "And we can skip ahead one slide, please.", "speaker": "Jonas Biery" }, { "id": "cue-37", "start": 647.571, "end": 656.537, "text": "Really glad to have those recognized and wanted to provide a little more context about those to frame up some of those process improvements.", "speaker": "Jonas Biery" }, { "id": "cue-38", "start": 656.585, "end": 656.715, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-39", "start": 657.623, "end": 679.777, "text": "Ruth's going to talk about the numbers in details, but really wanted to highlight some of the upgrades that will emphasize sort of the broader conversations we're having around better analysis and quality of information, improving transparency, and aligning to initiatives that we've talked about recently in the context of financial stabilization.", "speaker": "Jonas Biery" }, { "id": "cue-40", "start": 680.626, "end": 688.177, "text": "I believe that all of these improvements are consistent with feedback and requests we've heard from councilors, including some dialogue at this morning's council meeting.", "speaker": "Jonas Biery" }, { "id": "cue-41", "start": 688.225, "end": 688.401, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-42", "start": 689.283, "end": 692.665, "text": "Regarding consistency, predictability, and transparency.", "speaker": "Jonas Biery" }, { "id": "cue-43", "start": 692.729, "end": 697.105, "text": "Those are values that we share and hope to continue prioritizing.", "speaker": "Jonas Biery" }, { "id": "cue-44", "start": 697.618, "end": 701.754, "text": "So greatly appreciate council support as we continuously improve our processes.", "speaker": "Jonas Biery" }, { "id": "cue-45", "start": 702.732, "end": 708.214, "text": "The key upgrades in this package in the fall TAO that you'll be considering in the coming weeks.", "speaker": "Jonas Biery" }, { "id": "cue-46", "start": 708.679, "end": 713.905, "text": "The first is doing this work earlier and making more space for dialogue with you.", "speaker": "Jonas Biery" }, { "id": "cue-47", "start": 714.995, "end": 724.875, "text": "The second, compared to recent years, we're expanding and enhancing our reporting on prior prior year fund balances and on contingencies and reserves, and we'll have some detail on that.", "speaker": "Jonas Biery" }, { "id": "cue-48", "start": 725.581, "end": 734.938, "text": "In this fall TAO, we're taking leadership to recognize reserves in alignment with new guidance from the Department of Revenue.", "speaker": "Jonas Biery" }, { "id": "cue-49", "start": 735.628, "end": 747.312, "text": "This change will also align with our own prior discussions on improving information regarding reserves, and it's included a robust citywide review of all contingencies and reserves.", "speaker": "Jonas Biery" }, { "id": "cue-50", "start": 747.729, "end": 770.465, "text": "Ultimately, this is a huge transparency improvement, really a big level up and will be, I think, very, very helpful in the future and responsive to some difficult conversations we had in the past so that we can more properly categorize information as contingency versus reserves and be more clear about what those reserves are actually intended to be held for.", "speaker": "Jonas Biery" }, { "id": "cue-51", "start": 771.412, "end": 773.467, "text": "And we'll share more detail about that.", "speaker": "Jonas Biery" }, { "id": "cue-52", "start": 774.704, "end": 775.073, "text": "The—.", "speaker": "Jonas Biery" }, { "id": "cue-53", "start": 775.682, "end": 794.774, "text": "The TAO package also includes creation and formal implementation of a business license tax stabilization reserve and the associated policy with that, which is in response to a fiscal 26-27 budget note and is also in alignment with the financial stabilization recommendations and actions that we discussed a couple of weeks ago.", "speaker": "Jonas Biery" }, { "id": "cue-54", "start": 796.121, "end": 804.649, "text": "With a budget as large as the city's, there's always going to be a lot going on within the line item details, and we're certainly happy to share every single one of those with you.", "speaker": "Jonas Biery" }, { "id": "cue-55", "start": 805.659, "end": 821.978, "text": "However, I do want to observe that with the exception of some kind of large net-zero packages related to the reserves reclassification I just mentioned and related to organizational realignment, generally this is a simpler and smaller fall TAO compared to prior years.", "speaker": "Jonas Biery" }, { "id": "cue-56", "start": 822.026, "end": 830.098, "text": "And I think that's by intention and design and responding to some of the feedback that we've heard and tried to manage through our budget system.", "speaker": "Jonas Biery" }, { "id": "cue-57", "start": 831.013, "end": 832.827, "text": "Council President mentioned encumbrance carryovers.", "speaker": "Jonas Biery" }, { "id": "cue-58", "start": 833.886, "end": 835.154, "text": "That's received a lot of airtime.", "speaker": "Jonas Biery" }, { "id": "cue-59", "start": 835.411, "end": 850.161, "text": "As a result of that feedback, we've instituted a much more kind of restrictive expectation around how encumbrance carryovers are used and a much more robust analytical process related to requests that do come forward.", "speaker": "Jonas Biery" }, { "id": "cue-60", "start": 850.579, "end": 857.047, "text": "And so that improvement has limited the amount and volume of encumbrance carryovers compared to prior years.", "speaker": "Jonas Biery" }, { "id": "cue-61", "start": 857.095, "end": 858.877, "text": "And so we'll share those details as well.", "speaker": "Jonas Biery" }, { "id": "cue-62", "start": 860.049, "end": 866.127, "text": "Lastly, generally, This fall TAO continues the city's movement towards financial stabilization.", "speaker": "Jonas Biery" }, { "id": "cue-63", "start": 866.864, "end": 877.043, "text": "I do expect we'll still be facing a budget challenge in fiscal '27-'28, and we obviously can't be complacent about the work we have remaining in fiscal '26-'27.", "speaker": "Jonas Biery" }, { "id": "cue-64", "start": 877.621, "end": 886.389, "text": "But the big picture today will show that we're essentially on target with the adopted budget, and that's a massive improvement from where we stood at this point a year ago.", "speaker": "Jonas Biery" }, { "id": "cue-65", "start": 887.623, "end": 909.38, "text": "Budgets are inherently complex, can sometimes be arcane, and budget conversations are rarely easy, but I did want to just take a minute and kind of set the tone to emphasize the effort that's been made and will continue to be made to shift away from some of those challenges of the past and move us towards an environment of transparency, confidence, and trust.", "speaker": "Jonas Biery" }, { "id": "cue-66", "start": 909.38, "end": 912.2, "text": "All right, so Council President previewed the agenda.", "speaker": "Jonas Biery" }, { "id": "cue-67", "start": 912.2, "end": 912.98, "text": "Yeah, you can skip forward.", "speaker": "Jonas Biery" }, { "id": "cue-68", "start": 912.98, "end": 913.9, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-69", "start": 913.9, "end": 915.48, "text": "So kind of 3 sections.", "speaker": "Jonas Biery" }, { "id": "cue-70", "start": 915.48, "end": 918.29, "text": "The first will be the prior year reporting.", "speaker": "Jonas Biery" }, { "id": "cue-71", "start": 918.4, "end": 921.12, "text": "It's an area where we've heard requests for additional transparency.", "speaker": "Jonas Biery" }, { "id": "cue-72", "start": 921.22, "end": 922.66, "text": "We agree with that.", "speaker": "Jonas Biery" }, { "id": "cue-73", "start": 922.66, "end": 927.123, "text": "So I want to take some time to walk through some of the details around the the priority reporting.", "speaker": "Jonas Biery" }, { "id": "cue-74", "start": 927.541, "end": 938.521, "text": "Second will be to talk about the proposed actions in the fall TAO, the adjustment ordinance itself, which includes some technical adjustments and a small amount of more discretionary items.", "speaker": "Jonas Biery" }, { "id": "cue-75", "start": 939.098, "end": 942.357, "text": "And then we'll move to talking about a budget calendar.", "speaker": "Jonas Biery" }, { "id": "cue-76", "start": 943.593, "end": 952.984, "text": "And just noting that the budget calendar, as we get there, processing calendar conversation does reflect the feedback that we heard from you all in the September 10th work session around process improvements.", "speaker": "Jonas Biery" }, { "id": "cue-77", "start": 953.032, "end": 953.305, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-78", "start": 954.859, "end": 959.457, "text": "And colleagues, I'll just note there's a dedicated time for Q&A, so I will not be having folks interrupt.", "speaker": "Jamie Dunphy" }, { "id": "cue-79", "start": 959.553, "end": 961.332, "text": "Please hold your Q&A until there's time for it.", "speaker": "Jamie Dunphy" }, { "id": "cue-80", "start": 961.412, "end": 961.748, "text": "So great.", "speaker": "Jonas Biery" }, { "id": "cue-81", "start": 961.812, "end": 962.822, "text": "Yeah, thank you, Council President.", "speaker": "Jonas Biery" }, { "id": "cue-82", "start": 962.87, "end": 968.14, "text": "Yeah, we do intend to have a little space after each section, so because they are kind of discrete topics to some degree.", "speaker": "Jonas Biery" }, { "id": "cue-83", "start": 969.246, "end": 970.511, "text": "All right, so let's dig in.", "speaker": "Jonas Biery" }, { "id": "cue-84", "start": 971.489, "end": 977.993, "text": "Wanted to start officially with a reminder of kind of what the fall TAO is and why we do a fall budget adjustment.", "speaker": "Jonas Biery" }, { "id": "cue-85", "start": 978.554, "end": 984.449, "text": "The first rule of a mid-year budget adjustment is to maintain continued compliance with budget law and with city policy.", "speaker": "Jonas Biery" }, { "id": "cue-86", "start": 985.267, "end": 1000.239, "text": "Mid-year adjustments are allowed for urgent or unforeseen expense adjustments, to reconcile fund balances, to adjust contingencies, and et cetera, to match beginning fund balances, to align expenditures to city policy, and in limited circumstances to make other changes.", "speaker": "Jonas Biery" }, { "id": "cue-87", "start": 1001.393, "end": 1017.391, "text": "The fall TAO is an important moment to review prior year actual expenditures, which are now known now that the fiscal year has ended and we've been able to do that work, and to understand why those amounts have changed and how those changes relate to fund balances and other potential decisions.", "speaker": "Jonas Biery" }, { "id": "cue-88", "start": 1018.69, "end": 1024.236, "text": "So the first topic is prior year reporting and updates on contingency and reserve amounts.", "speaker": "Jonas Biery" }, { "id": "cue-89", "start": 1025.342, "end": 1026.609, "text": "Why do we do prior year reporting?", "speaker": "Jonas Biery" }, { "id": "cue-90", "start": 1027.346, "end": 1031.594, "text": "It's a best practice to track, monitor, and report on budget spending and status.", "speaker": "Jonas Biery" }, { "id": "cue-91", "start": 1032.235, "end": 1061.565, "text": "And while reporting and monitoring of budgets has gone through sort of peaks and valleys at the city over the years, where sometimes we've done a little more robust work, in recent years done maybe a little bit less, we're currently working citywide to improve the budget monitoring process, to improve the reporting cadence, And also to ensure that that work is being done in a consistent and coordinated manner that can be sort of strategically implemented citywide rather than being maybe more ad hoc and inconsistent as it has been in the past.", "speaker": "Jonas Biery" }, { "id": "cue-92", "start": 1062.382, "end": 1069.113, "text": "Improved budget tracking and reporting is also responsive to a prior budget note, I believe, Mario 3 from '25-'26.", "speaker": "Jonas Biery" }, { "id": "cue-93", "start": 1070.154, "end": 1085.136, "text": "The budget monitoring detail that we're going to talk about next also provides context for why specific TAO adjustments may occur and helps illuminate why we need to make those changes to remain in budget balance and compliance.", "speaker": "Jonas Biery" }, { "id": "cue-94", "start": 1087.21, "end": 1090.1, "text": "Lastly, priority reporting can help inform future decision-making.", "speaker": "Jonas Biery" }, { "id": "cue-95", "start": 1090.213, "end": 1099.758, "text": "For example, if we observe underspending occurring every year in the same or similar circumstances, that may indicate that we actually need to make a change in what we're budgeting for.", "speaker": "Jonas Biery" }, { "id": "cue-96", "start": 1099.823, "end": 1101.296, "text": "And so that's another important outcome.", "speaker": "Jonas Biery" }, { "id": "cue-97", "start": 1102.969, "end": 1105.791, "text": "And then before I hand to Ruth, just a couple of caveats.", "speaker": "Jonas Biery" }, { "id": "cue-98", "start": 1106.577, "end": 1109.351, "text": "First, you know, we're a large and complex organization.", "speaker": "Jonas Biery" }, { "id": "cue-99", "start": 1110.025, "end": 1116.904, "text": "Financial data changes every single day as we make payments and receive payments, and data can often be messy.", "speaker": "Jonas Biery" }, { "id": "cue-100", "start": 1118.043, "end": 1124.569, "text": "Actual expenditures differ from expected budgets for many reasons, and those reasons can sometimes not be super clear.", "speaker": "Jonas Biery" }, { "id": "cue-101", "start": 1124.713, "end": 1136.205, "text": "And so that's part of the broader process improvement, both to make that clear in the initial budget adoption and to make that clear in ongoing reporting and to make that clear, of course, in these moments of adjustments.", "speaker": "Jonas Biery" }, { "id": "cue-102", "start": 1138.204, "end": 1150.526, "text": "That sort of real or perceived obscurity also makes clear why moments like this are really important so we can have transparent communication and dialogue about what's happening.", "speaker": "Jonas Biery" }, { "id": "cue-103", "start": 1151.588, "end": 1157.04, "text": "The second caveat is that it's not unusual for fund balances to change.", "speaker": "Jonas Biery" }, { "id": "cue-104", "start": 1157.105, "end": 1159.058, "text": "We actually would expect that they change.", "speaker": "Jonas Biery" }, { "id": "cue-105", "start": 1161.617, "end": 1161.779, "text": "They—.", "speaker": "Jonas Biery" }, { "id": "cue-106", "start": 1161.779, "end": 1169.964, "text": "We typically would expect that they would actually increase, that fund balances would increase, i.e., be underspent, rather than decrease, i.e., be overspent.", "speaker": "Jonas Biery" }, { "id": "cue-107", "start": 1170.028, "end": 1171.095, "text": "We don't want overspent budgets.", "speaker": "Jonas Biery" }, { "id": "cue-108", "start": 1171.159, "end": 1172.452, "text": "We do want underspent budgets.", "speaker": "Jonas Biery" }, { "id": "cue-109", "start": 1173.018, "end": 1177.496, "text": "That is why often we have additional fund balance that requires adjustment.", "speaker": "Jonas Biery" }, { "id": "cue-110", "start": 1178.191, "end": 1180.817, "text": "That exists for a variety of reasons, all of which are healthy.", "speaker": "Jonas Biery" }, { "id": "cue-111", "start": 1181.212, "end": 1195.934, "text": "Conservative forecasting, as I mentioned, which might mean revenues are coming in higher than expected, intentional efforts to reduce or eliminate costs, and then potentially program delays, which might be either anticipated or unexpected.", "speaker": "Jonas Biery" }, { "id": "cue-112", "start": 1196.688, "end": 1212.714, "text": "So with that kind of tee-up about why we want to talk about priority reporting and why I think you'll be interested in it, Ruth is going to move to doing kind of a hypothetical explainer about fund balance, And then get into some of the actual numerical changes, importantly including contingency and reserve information.", "speaker": "Jonas Biery" }, { "id": "cue-113", "start": 1214.9, "end": 1215.093, "text": "Great.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-114", "start": 1215.255, "end": 1217.95, "text": "Okay, so I'm starting way at the beginning here.", "speaker": "Unidentified speaker" }, { "id": "cue-115", "start": 1218.951, "end": 1225.945, "text": "I just thought this was helpful because this is a confusing topic even for those of us who do this professionally and do it every year.", "speaker": "Unidentified speaker" }, { "id": "cue-116", "start": 1226.334, "end": 1229.344, "text": "So I just, I thought maybe for the public this would be a helpful thing.", "speaker": "Unidentified speaker" }, { "id": "cue-117", "start": 1229.457, "end": 1239.509, "text": "So this is a very simplified hypothetical example that's sort of in some sequential slides here to demonstrate why these true-ups are necessary and how they work.", "speaker": "Unidentified speaker" }, { "id": "cue-118", "start": 1240.424, "end": 1244.488, "text": "Um, so in this example, we're starting with a prior year budget.", "speaker": "Unidentified speaker" }, { "id": "cue-119", "start": 1244.616, "end": 1246.688, "text": "Obviously, in this case, this is '25-'26.", "speaker": "Unidentified speaker" }, { "id": "cue-120", "start": 1247.33, "end": 1250.543, "text": "Um, revenues and expenditures are balanced as is required.", "speaker": "Unidentified speaker" }, { "id": "cue-121", "start": 1250.784, "end": 1255.265, "text": "There are program expenses, all the stuff we pay for, and there's contingency.", "speaker": "Unidentified speaker" }, { "id": "cue-122", "start": 1256.405, "end": 1267.735, "text": "Um, as Jonas mentioned, We, you know, typically per financial policy, we sort of are conservative in forecasting both our revenues and expenses.", "speaker": "Unidentified speaker" }, { "id": "cue-123", "start": 1267.832, "end": 1279.625, "text": "So in this hypothetical example, the revenues come in a little bit higher at the end of the year than they were budgeted to, and the program expenses come in a little bit lower at the end of the year than was budgeted.", "speaker": "Unidentified speaker" }, { "id": "cue-124", "start": 1279.706, "end": 1282.086, "text": "Mm-hmm.", "speaker": "Unidentified speaker" }, { "id": "cue-125", "start": 1283.916, "end": 1287.235, "text": "And, you know, this, as we said, this is not an uncommon occurrence.", "speaker": "Unidentified speaker" }, { "id": "cue-126", "start": 1288.076, "end": 1292.741, "text": "In reality, but it's not the only situation that could arise.", "speaker": "Unidentified speaker" }, { "id": "cue-127", "start": 1295.8, "end": 1302.421, "text": "In order to maintain balanced budgets and for accounting purposes, the funds, the revenues and expenses have to equal at the end of the year.", "speaker": "Unidentified speaker" }, { "id": "cue-128", "start": 1303.112, "end": 1309.916, "text": "That gap between the actual revenues and actual expenses is made up by actual ending fund balance.", "speaker": "Unidentified speaker" }, { "id": "cue-129", "start": 1310.028, "end": 1311.058, "text": "That's the term.", "speaker": "Unidentified speaker" }, { "id": "cue-130", "start": 1312.183, "end": 1312.489, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-131", "start": 1313.559, "end": 1315.501, "text": "So now we move to the next year.", "speaker": "Unidentified speaker" }, { "id": "cue-132", "start": 1316.095, "end": 1328, "text": "And as a reminder, you don't know what those actual numbers are typically for us until mid-August sometime, right, until after the fiscal year has closed and we're able to do all of those accounting true-ups and the like.", "speaker": "Unidentified speaker" }, { "id": "cue-133", "start": 1329.027, "end": 1333.439, "text": "At that point, we have already adopted a budget, obviously under law.", "speaker": "Unidentified speaker" }, { "id": "cue-134", "start": 1334.161, "end": 1337.659, "text": "And so we don't— at the time of the adoption, you don't know what that ending fund balance is.", "speaker": "Unidentified speaker" }, { "id": "cue-135", "start": 1337.771, "end": 1341.237, "text": "So in this example, you've got a little bit more revenue and a little bit more expense.", "speaker": "Unidentified speaker" }, { "id": "cue-136", "start": 1341.285, "end": 1341.349, "text": "Yeah.", "speaker": "Unidentified speaker" }, { "id": "cue-137", "start": 1341.686, "end": 1346.372, "text": "In the current fiscal year than in the previous fiscal year, and they're both balanced.", "speaker": "Unidentified speaker" }, { "id": "cue-138", "start": 1346.998, "end": 1360.398, "text": "Now we come to the fall and we have to recognize that ending fund balance that appeared in at the end of the fiscal of the prior fiscal year and add it to our budget.", "speaker": "Unidentified speaker" }, { "id": "cue-139", "start": 1360.478, "end": 1363.688, "text": "In this case, it's a, it's an increase in the during the true-up.", "speaker": "Unidentified speaker" }, { "id": "cue-140", "start": 1364.314, "end": 1371.279, "text": "And as you can see in this example, so increases, that becomes what's called beginning fund balance, which is a revenue.", "speaker": "Unidentified speaker" }, { "id": "cue-141", "start": 1371.327, "end": 1371.375, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-142", "start": 1371.793, "end": 1374.091, "text": "Because it's extra resources, essentially.", "speaker": "Unidentified speaker" }, { "id": "cue-143", "start": 1374.831, "end": 1378.592, "text": "And that has to be matched on the expenditure side by something.", "speaker": "Unidentified speaker" }, { "id": "cue-144", "start": 1378.785, "end": 1386.029, "text": "In this example, it's matched both by an increase in both program expenses and contingency, as an example.", "speaker": "Unidentified speaker" }, { "id": "cue-145", "start": 1388.541, "end": 1393.486, "text": "I note that this is a simplified example, although it's not an uncommon one.", "speaker": "Unidentified speaker" }, { "id": "cue-146", "start": 1396.343, "end": 1397.455, "text": "But a couple of things.", "speaker": "Unidentified speaker" }, { "id": "cue-147", "start": 1397.553, "end": 1407.331, "text": "The sort of true-up of ending fund balance and the expenses, the change in expenses is rarely kind of one-to-one when you get to the fall, right?", "speaker": "Unidentified speaker" }, { "id": "cue-148", "start": 1407.493, "end": 1413.315, "text": "First of all, it could be split between program expenses and contingency, and there's often other stuff going on.", "speaker": "Unidentified speaker" }, { "id": "cue-149", "start": 1413.363, "end": 1416.772, "text": "There might be other revenues changing, other expenditures changing.", "speaker": "Unidentified speaker" }, { "id": "cue-150", "start": 1416.82, "end": 1422.308, "text": "So it often can be a little confusing once you get to the numbers in the fall.", "speaker": "Unidentified speaker" }, { "id": "cue-151", "start": 1422.921, "end": 1428.478, "text": "We will, however, as part of this presentation, be going through the specific fund balance adjustments for all of the funds.", "speaker": "Unidentified speaker" }, { "id": "cue-152", "start": 1428.543, "end": 1428.853, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-153", "start": 1429.668, "end": 1437.176, "text": "And providing a spreadsheet after today that has all of the details about the contingencies and reserves.", "speaker": "Unidentified speaker" }, { "id": "cue-154", "start": 1438.39, "end": 1445.339, "text": "So hopefully that will make it a little bit more transparent and that this explainer will help you to make sense of those numbers.", "speaker": "Unidentified speaker" }, { "id": "cue-155", "start": 1448.266, "end": 1448.54, "text": "All right.", "speaker": "Unidentified speaker" }, { "id": "cue-156", "start": 1448.781, "end": 1456.586, "text": "So, and just to really hit home on this, Why do we update the fund balances?", "speaker": "Unidentified speaker" }, { "id": "cue-157", "start": 1456.634, "end": 1459.081, "text": "So why can't you just leave the ending fund balance there?", "speaker": "Unidentified speaker" }, { "id": "cue-158", "start": 1459.596, "end": 1462.381, "text": "You have to reflect all of the city's resources in the budget.", "speaker": "Unidentified speaker" }, { "id": "cue-159", "start": 1464.46, "end": 1465.414, "text": "And then what does it mean?", "speaker": "Unidentified speaker" }, { "id": "cue-160", "start": 1465.77, "end": 1469.505, "text": "I touched on this a little bit, but what does it mean to update the fund balances in the fall TAO?", "speaker": "Unidentified speaker" }, { "id": "cue-161", "start": 1470.136, "end": 1471.478, "text": "Does it mean there's new money?", "speaker": "Unidentified speaker" }, { "id": "cue-162", "start": 1472, "end": 1474.139, "text": "Sometimes it does and sometimes it doesn't.", "speaker": "Unidentified speaker" }, { "id": "cue-163", "start": 1474.22, "end": 1478.354, "text": "So I gave a couple of examples of how this could play out differently.", "speaker": "Unidentified speaker" }, { "id": "cue-164", "start": 1479.352, "end": 1492.996, "text": "These are not the only 2 examples, but— In one example, there's kind of a multi-year capital project that results in fund balance in year 1 because the capital project wasn't completed, and maybe that was even planned to not be completed in the first year.", "speaker": "Unidentified speaker" }, { "id": "cue-165", "start": 1493.525, "end": 1498.896, "text": "Those expenses then travel with the revenue that becomes beginning fund balance.", "speaker": "Unidentified speaker" }, { "id": "cue-166", "start": 1498.976, "end": 1502.118, "text": "The expenses, the obligation travels to the next fiscal year as well.", "speaker": "Unidentified speaker" }, { "id": "cue-167", "start": 1502.759, "end": 1505.373, "text": "So there may not be another dollar available.", "speaker": "Unidentified speaker" }, { "id": "cue-168", "start": 1505.437, "end": 1506.815, "text": "It's just the same work that's moved to the next fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-169", "start": 1507.057, "end": 1507.557, "text": "Fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-170", "start": 1508.121, "end": 1519.114, "text": "In the second example, it does result in new resources because, you know, again, maybe this is— we've got a volatile revenue stream, we've conservatively forecast it so it comes in with excess revenue.", "speaker": "Unidentified speaker" }, { "id": "cue-171", "start": 1519.517, "end": 1525.264, "text": "There may be some new revenue available that we, you know, having closed the fiscal year, know came in.", "speaker": "Unidentified speaker" }, { "id": "cue-172", "start": 1526.849, "end": 1532.027, "text": "There are numerous other ways that this could play out, but just to kind of highlight that.", "speaker": "Unidentified speaker" }, { "id": "cue-173", "start": 1533.021, "end": 1535.272, "text": "And then what happens to those fund balances?", "speaker": "Unidentified speaker" }, { "id": "cue-174", "start": 1535.386, "end": 1540.589, "text": "Well, Council obviously has to appropriate and make the decisions about all of them.", "speaker": "Unidentified speaker" }, { "id": "cue-175", "start": 1541.056, "end": 1546.481, "text": "There is financial policy in some cases, and we're going to talk more about some of that later in the presentation today.", "speaker": "Unidentified speaker" }, { "id": "cue-176", "start": 1549.12, "end": 1555.963, "text": "So the next slide looks at general fund ending fund balance and budgeted beginning fund balance over time.", "speaker": "Unidentified speaker" }, { "id": "cue-177", "start": 1556.011, "end": 1564.238, "text": "So essentially the same as those graphs I just showed you in the hypothetical example, but the actual general fund numbers over time.", "speaker": "Unidentified speaker" }, { "id": "cue-178", "start": 1567.386, "end": 1570.734, "text": "And let's see, a couple of things to note about this.", "speaker": "Unidentified speaker" }, { "id": "cue-179", "start": 1571.122, "end": 1576.46, "text": "So the difference between the blue and the yellow is what you're sort of truing up in the next fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-180", "start": 1577.036, "end": 1588.648, "text": "It's not the case, though, that the entire gap is sort of available because there are some required adjustments that have to be made, and we'll talk more about those for this year later in the presentation.", "speaker": "Unidentified speaker" }, { "id": "cue-181", "start": 1590.055, "end": 1595.018, "text": "The other obvious thing to note here is the shape of this graph is unusual.", "speaker": "Unidentified speaker" }, { "id": "cue-182", "start": 1595.196, "end": 1599.695, "text": "I think the— and kind of raises questions about why it is.", "speaker": "Unidentified speaker" }, { "id": "cue-183", "start": 1599.808, "end": 1611.409, "text": "And the big reason is there was sort of a bump in the snake, I guess, in fiscal year '22-'23, because you can see that really big gap in '21-'22 immediately post-COVID.", "speaker": "Unidentified speaker" }, { "id": "cue-184", "start": 1613.353, "end": 1618.608, "text": "That created a whole bunch of one-time resource that we've talked about a lot as kind of the fiscal cliff.", "speaker": "Unidentified speaker" }, { "id": "cue-185", "start": 1619.468, "end": 1622.069, "text": "And it took several years to work through that, right?", "speaker": "Unidentified speaker" }, { "id": "cue-186", "start": 1622.117, "end": 1627.914, "text": "The more one-time you have allocated, the more is likely to carry over into the next year for several years in a row.", "speaker": "Unidentified speaker" }, { "id": "cue-187", "start": 1628.797, "end": 1634.561, "text": "We're now back down to sort of below our pre-COVID numbers on this.", "speaker": "Unidentified speaker" }, { "id": "cue-188", "start": 1635.043, "end": 1644.259, "text": "For this year, part of the reason beginning fund balance is so low is because we actually dipped into our contingencies during '25-'26 to make it through the fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-189", "start": 1644.757, "end": 1653.95, "text": "So often part of beginning fund balance is contingencies that once we get to spring, we say, great, we didn't need this, we can put it into next year as beginning fund balance.", "speaker": "Unidentified speaker" }, { "id": "cue-190", "start": 1654.417, "end": 1660.057, "text": "We didn't have much of that this year, and so that's why we're kind of historically low in the current fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-191", "start": 1662.818, "end": 1666.038, "text": "And I will talk more later in the presentation about what that means for the fall TAP.", "speaker": "Unidentified speaker" }, { "id": "cue-192", "start": 1668.082, "end": 1668.919, "text": "General fund returns.", "speaker": "Unidentified speaker" }, { "id": "cue-193", "start": 1670.144, "end": 1681.119, "text": "As Jonas mentioned, we did a bit more prior year reporting than we have with bureaus in recent years, particularly around the general fund, to look at essentially where was their underspending.", "speaker": "Unidentified speaker" }, { "id": "cue-194", "start": 1681.955, "end": 1689.898, "text": "This slide rolls all of that information up general fund-wide because I didn't have time to go through all 26 bureaus with you.", "speaker": "Unidentified speaker" }, { "id": "cue-195", "start": 1689.995, "end": 1696.088, "text": "But we do have additional information, and if there are specific questions, we can come back next thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-196", "start": 1696.168, "end": 1697.467, "text": "I'll be back next week to answer them.", "speaker": "Unidentified speaker" }, { "id": "cue-197", "start": 1697.595, "end": 1706.384, "text": "But essentially what this shows you is 2 kinds of general fund returns, one from last spring.", "speaker": "Unidentified speaker" }, { "id": "cue-198", "start": 1707.859, "end": 1710.874, "text": "And so you can think of this as like true underspending.", "speaker": "Unidentified speaker" }, { "id": "cue-199", "start": 1710.986, "end": 1713.969, "text": "Like it doesn't have the revenue side of the picture.", "speaker": "Unidentified speaker" }, { "id": "cue-200", "start": 1714.033, "end": 1715.653, "text": "It's just the expenditure side of the picture.", "speaker": "Unidentified speaker" }, { "id": "cue-201", "start": 1715.717, "end": 1719.967, "text": "How much less did we spend than we had originally budgeted for?", "speaker": "Unidentified speaker" }, { "id": "cue-202", "start": 1720.448, "end": 1742.511, "text": "So $6.5 million was So the $14.8 million was sort of returned to the general fund in the spring, and then looking at the discretionary portion of the kind of the end of the fiscal year budget to what happened— sorry, the last revised budget to what happened at the end of the fiscal year in the general fund, that was $14.8 million.", "speaker": "Unidentified speaker" }, { "id": "cue-203", "start": 1743.424, "end": 1751.467, "text": "Of that total, $4.6 million is proposed to be carried over through encumbrance carryovers in the fall, and we'll talk more about that.", "speaker": "Unidentified speaker" }, { "id": "cue-204", "start": 1751.531, "end": 1751.627, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-205", "start": 1752.173, "end": 1752.221, "text": "Yes.", "speaker": "Loretta Smith" }, { "id": "cue-206", "start": 1752.334, "end": 1753.779, "text": "And we'll talk about that number later today.", "speaker": "Unidentified speaker" }, { "id": "cue-207", "start": 1755.047, "end": 1762.096, "text": "But the net result of all of that is $16.8 million in what I would call like true general fund underspending.", "speaker": "Unidentified speaker" }, { "id": "cue-208", "start": 1763.316, "end": 1764.922, "text": "A couple of things to note about this.", "speaker": "Unidentified speaker" }, { "id": "cue-209", "start": 1765.901, "end": 1772.774, "text": "That is out of a total general fund allocation number of about $875 million.", "speaker": "Unidentified speaker" }, { "id": "cue-210", "start": 1773.304, "end": 1775.391, "text": "So it's less than 2% of the total.", "speaker": "Unidentified speaker" }, { "id": "cue-211", "start": 1775.551, "end": 1776.29, "text": "So that's one thing.", "speaker": "Unidentified speaker" }, { "id": "cue-212", "start": 1777.399, "end": 1777.512, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-213", "start": 1777.787, "end": 1781.309, "text": "Which is kind of roughly what I would expect.", "speaker": "Unidentified speaker" }, { "id": "cue-214", "start": 1783.71, "end": 1793.724, "text": "Another thing is it includes $6 million of contingency that wasn't drawn, which includes $4.3 million that we budgeted as beginning fund balance.", "speaker": "Unidentified speaker" }, { "id": "cue-215", "start": 1794.142, "end": 1798.676, "text": "That was from the housing ordinance that happened in the spring last year.", "speaker": "Unidentified speaker" }, { "id": "cue-216", "start": 1801.055, "end": 1812.136, "text": "And then the other roughly $11 million is split between personnel vacancy savings and external materials and services underspending.", "speaker": "Unidentified speaker" }, { "id": "cue-217", "start": 1813.09, "end": 1823.555, "text": "Both of those on some level I think can be tied to directions to restrict spending from the city administrator last year.", "speaker": "Unidentified speaker" }, { "id": "cue-218", "start": 1824.334, "end": 1828.848, "text": "There was a hiring freeze in place, so that certainly resulted in some vacancy savings.", "speaker": "Unidentified speaker" }, { "id": "cue-219", "start": 1829.533, "end": 1835.123, "text": "And then there were directions to, you know, reduce contract spending.", "speaker": "Unidentified speaker" }, { "id": "cue-220", "start": 1835.397, "end": 1839.535, "text": "And we have more details on all of this and can provide additional during Q&A.", "speaker": "Unidentified speaker" }, { "id": "cue-221", "start": 1839.664, "end": 1844.829, "text": "I have some of it handy, and then we can also provide more details in spreadsheet form after today.", "speaker": "Unidentified speaker" }, { "id": "cue-222", "start": 1846.014, "end": 1852.956, "text": "But I just wanted to give you sort of the high-level view of this kind of prior year reporting that we completed in the general fund.", "speaker": "Unidentified speaker" }, { "id": "cue-223", "start": 1856.139, "end": 1877.733, "text": "All right, and then outside of the general fund, in terms of fund balance adjustments, this slide shows you the biggest ones by dollar figure in terms of that difference between what was sort of expected, what was budgeted, and then how did it actually end at the end of the fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-224", "start": 1878.38, "end": 1880.708, "text": "And you can see it goes in both directions.", "speaker": "Unidentified speaker" }, { "id": "cue-225", "start": 1880.821, "end": 1883.342, "text": "Some of them are a reduction and some of them are an increase.", "speaker": "Unidentified speaker" }, { "id": "cue-226", "start": 1884.043, "end": 1884.926, "text": "In fund balance.", "speaker": "Unidentified speaker" }, { "id": "cue-227", "start": 1885.553, "end": 1894.287, "text": "I'm not going to go through each line on this, but as I mentioned earlier, the— we'll provide a full spreadsheet on the contingencies and reserves.", "speaker": "Unidentified speaker" }, { "id": "cue-228", "start": 1894.4, "end": 1903.552, "text": "And then exhibit 2, which is posted with the ordinance, has all of the appropriation changes, and there's for every single fund.", "speaker": "Unidentified speaker" }, { "id": "cue-229", "start": 1903.616, "end": 1910.41, "text": "And so there's more details on every fund, um, in that exhibit once when you see that.", "speaker": "Unidentified speaker" }, { "id": "cue-230", "start": 1912.065, "end": 1914.492, "text": "A couple of things to highlight here as well.", "speaker": "Unidentified speaker" }, { "id": "cue-231", "start": 1915.199, "end": 1921.278, "text": "You'll see a lot of these relate to capital and debt financing, and that's pretty common.", "speaker": "Unidentified speaker" }, { "id": "cue-232", "start": 1921.392, "end": 1937.353, "text": "A lot of the big swings in fund balance result from these multi-year capital projects or from debt financing, which obviously has multiple technical entries involved in multiple funds where the funding comes into one fund and then gets dispersed out to other funds.", "speaker": "Unidentified speaker" }, { "id": "cue-233", "start": 1937.405, "end": 1946.001, "text": "So one delay in the— in a bond issuance has a big swing, um, in this case for multiple funds in the city.", "speaker": "Unidentified speaker" }, { "id": "cue-234", "start": 1948.271, "end": 1957.828, "text": "Um, and then PSF at the bottom is the sort of multi-year projects, um, where the funding is carried from one fiscal year to the next.", "speaker": "Unidentified speaker" }, { "id": "cue-235", "start": 1960.16, "end": 1964.572, "text": "All right, we're going to switch topics a little bit.", "speaker": "Unidentified speaker" }, { "id": "cue-236", "start": 1964.718, "end": 1965.744, "text": "The next section of the thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-237", "start": 1965.792, "end": 1968.233, "text": "So the next presentation is on contingencies and reserves.", "speaker": "Unidentified speaker" }, { "id": "cue-238", "start": 1968.281, "end": 1975.41, "text": "And as I sort of said, this is connected in some ways to the fund balance conversation, but it's also a distinct topic in and of itself.", "speaker": "Unidentified speaker" }, { "id": "cue-239", "start": 1976.711, "end": 1979.28, "text": "And we're recommending a change in how we're budgeting this.", "speaker": "Unidentified speaker" }, { "id": "cue-240", "start": 1979.441, "end": 1986.473, "text": "And so I've asked Allegra Wilhite, who's the Executive Director of the Tax Supervising Conservation Commission, to come.", "speaker": "Unidentified speaker" }, { "id": "cue-241", "start": 1987.051, "end": 1987.356, "text": "Here she is.", "speaker": "Unidentified speaker" }, { "id": "cue-242", "start": 1987.774, "end": 1990.247, "text": "So she's going to tee it up, and then I'll go into more of the details.", "speaker": "Unidentified speaker" }, { "id": "cue-243", "start": 1992.124, "end": 1996.261, "text": "All right, good afternoon, councilors, city administrator, and mayor.", "speaker": "Unidentified speaker" }, { "id": "cue-244", "start": 1996.758, "end": 2001.377, "text": "I'm Allegro Wilhite, and I'm the executive director of the Tax Supervising and Conservation Commission.", "speaker": "Unidentified speaker" }, { "id": "cue-245", "start": 2001.73, "end": 2004.023, "text": "You may remember that I get to see you all once a year.", "speaker": "Unidentified speaker" }, { "id": "cue-246", "start": 2004.215, "end": 2009.331, "text": "We're part of your budget process, as we are for almost all of the taxing districts here in Multnomah County.", "speaker": "Unidentified speaker" }, { "id": "cue-247", "start": 2009.908, "end": 2015.746, "text": "So Ruth has talked a lot about some very wonky budget things, and I get to talk about even wonkier budget things.", "speaker": "Unidentified speaker" }, { "id": "cue-248", "start": 2015.938, "end": 2018.135, "text": "So, so excited to be here today for that.", "speaker": "Unidentified speaker" }, { "id": "cue-249", "start": 2019.081, "end": 2026.134, "text": "City staff had asked if I could come and provide a little bit context on one particular aspect of the TAO that you're hearing about today.", "speaker": "Unidentified speaker" }, { "id": "cue-250", "start": 2026.984, "end": 2037.144, "text": "The intent for me to be here is just to provide a little bit of insight into the larger perspective of Oregon budget law that we're talking about here and why you're seeing certain proposed changes.", "speaker": "Unidentified speaker" }, { "id": "cue-251", "start": 2037.753, "end": 2045.157, "text": "So the fall TAO includes moving some budgeted contingency funds to the budget category of reserve for future expenditures.", "speaker": "Unidentified speaker" }, { "id": "cue-252", "start": 2045.654, "end": 2052.385, "text": "And in Oregon budget law, there is a clear definition and distinguishment between contingency and reserve.", "speaker": "Unidentified speaker" }, { "id": "cue-253", "start": 2052.449, "end": 2052.529, "text": "Yes.", "speaker": "Loretta Smith" }, { "id": "cue-254", "start": 2053.204, "end": 2062.652, "text": "Though in practice, some local governments have used the terms pretty interchangeably, and I would say generally speaking, the public and for most folks, it all means the same thing.", "speaker": "Unidentified speaker" }, { "id": "cue-255", "start": 2063.247, "end": 2068.919, "text": "Oregon budget law is quite explicit about these being different definitions for different flavors of money.", "speaker": "Unidentified speaker" }, { "id": "cue-256", "start": 2069.176, "end": 2089.086, "text": "So I think, Ruth, you might have a slide that kind of breaks it down, but I'll say from sort of the simplest way to think of it, I think, is that contingency is defined in law as So the example that I use when I'm giving trainings on this is that maybe, you know, you're going to have some kind of weather event every year.", "speaker": "Unidentified speaker" }, { "id": "cue-257", "start": 2089.632, "end": 2092.844, "text": "You don't know what it's going to be, so you put money in contingency.", "speaker": "Unidentified speaker" }, { "id": "cue-258", "start": 2092.941, "end": 2106.191, "text": "You know you're going to spend it, but you don't know if it's going to be purchasing materials and services for sandbags because of flooding, or if you might need that money for personnel services to enhance fire services because of wildfire encroachment on the city.", "speaker": "Unidentified speaker" }, { "id": "cue-259", "start": 2106.24, "end": 2106.579, "text": "Councilor Smith.", "speaker": "Jamie Dunphy" }, { "id": "cue-260", "start": 2106.926, "end": 2107.167, "text": "Right?", "speaker": "Unidentified speaker" }, { "id": "cue-261", "start": 2107.279, "end": 2110.438, "text": "You don't know, but you do know you're going to have to be spending something.", "speaker": "Unidentified speaker" }, { "id": "cue-262", "start": 2110.968, "end": 2113.694, "text": "So those funds go into contingency from budget law.", "speaker": "Unidentified speaker" }, { "id": "cue-263", "start": 2114.56, "end": 2119.307, "text": "Now, there are other things that we know that we're going to purchase, but it's not going to be in the current year.", "speaker": "Unidentified speaker" }, { "id": "cue-264", "start": 2119.451, "end": 2120.734, "text": "It's going to be further out.", "speaker": "Unidentified speaker" }, { "id": "cue-265", "start": 2121.135, "end": 2123.012, "text": "Another example is a fire engine.", "speaker": "Unidentified speaker" }, { "id": "cue-266", "start": 2123.381, "end": 2124.471, "text": "They're really expensive.", "speaker": "Unidentified speaker" }, { "id": "cue-267", "start": 2124.648, "end": 2127.839, "text": "We usually have to save for years, right, to buy one of those.", "speaker": "Unidentified speaker" }, { "id": "cue-268", "start": 2127.951, "end": 2131.993, "text": "So we might know we're going to buy a fire engine in fiscal year 2029.", "speaker": "Unidentified speaker" }, { "id": "cue-269", "start": 2132.137, "end": 2136.387, "text": "So we need some reserves for that, but we're not planning to purchase it in the current year.", "speaker": "Unidentified speaker" }, { "id": "cue-270", "start": 2136.451, "end": 2136.499, "text": "Right.", "speaker": "Unidentified speaker" }, { "id": "cue-271", "start": 2137.495, "end": 2139.662, "text": "So I'm looking up to see what your slides are here.", "speaker": "Unidentified speaker" }, { "id": "cue-272", "start": 2139.806, "end": 2143.788, "text": "Yes, you've got that not anticipated, which again, I think is kind of that clear thing.", "speaker": "Unidentified speaker" }, { "id": "cue-273", "start": 2144.799, "end": 2159.906, "text": "Another piece that's important to understand, I think, about the reserve for future expenditures piece is that if that purpose comes up sooner, let's say there's a big sale on fire engines and you can get one for half off this current year, great.", "speaker": "Unidentified speaker" }, { "id": "cue-274", "start": 2160.115, "end": 2166.103, "text": "You can actually still access your reserve for future expenditures even though it was planned for fiscal year 2029.", "speaker": "Unidentified speaker" }, { "id": "cue-275", "start": 2166.167, "end": 2166.215, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-276", "start": 2166.616, "end": 2168.333, "text": "Because it's the same purpose.", "speaker": "Unidentified speaker" }, { "id": "cue-277", "start": 2168.814, "end": 2173.626, "text": "So that's another way in which it's different from just like fund balance that's sitting there and you can't spend.", "speaker": "Unidentified speaker" }, { "id": "cue-278", "start": 2173.69, "end": 2179.481, "text": "You can do a supplemental budget if the purpose for that money comes up sooner, if there's another opportunity.", "speaker": "Unidentified speaker" }, { "id": "cue-279", "start": 2179.721, "end": 2182.577, "text": "So as decision makers, I think that's important for you to know.", "speaker": "Unidentified speaker" }, { "id": "cue-280", "start": 2183.892, "end": 2194.543, "text": "So in terms of how we got to where we are now, as I mentioned, many local governments would use contingency and reserves somewhat interchangeably and use contingency as an overall savings account.", "speaker": "Unidentified speaker" }, { "id": "cue-281", "start": 2195.168, "end": 2203.844, "text": "I believe one of the reasons for this is because it wasn't explicitly stated in budget law that you could have a reserve for future expenditure in any fund.", "speaker": "Unidentified speaker" }, { "id": "cue-282", "start": 2204.261, "end": 2208.784, "text": "It looked like it could only be in reserve funds, and so people kind of ignored it and didn't use it very often.", "speaker": "Unidentified speaker" }, { "id": "cue-283", "start": 2209.778, "end": 2219.945, "text": "We actually were having conversations with many different districts about this, this very issue this last spring, and so we went to Department of Revenue and said, can we get some clarity on this?", "speaker": "Unidentified speaker" }, { "id": "cue-284", "start": 2220.266, "end": 2225.146, "text": "And their guidance back to us was, it's not forbidden to use it in other funds, and so you can.", "speaker": "Unidentified speaker" }, { "id": "cue-285", "start": 2225.917, "end": 2238.999, "text": "So given that, we have updated our training and our guidance to say, let's take advantage of this definition of this tool in our budget handbook to be more transparent and clear about the flavor of this money.", "speaker": "Unidentified speaker" }, { "id": "cue-286", "start": 2239.143, "end": 2250.605, "text": "And so that's what we're talking about here with reserves versus contingency, is the opportunity to have more transparency about exactly what those funds are committed for and how you're planning on spending them.", "speaker": "Unidentified speaker" }, { "id": "cue-287", "start": 2250.685, "end": 2250.845, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-288", "start": 2251.736, "end": 2261.366, "text": "So from a budget law perspective, I do see this change as better aligning with the legal budget law categories as well as providing improved transparency.", "speaker": "Unidentified speaker" }, { "id": "cue-289", "start": 2264.11, "end": 2264.884, "text": "Great, thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-290", "start": 2265.821, "end": 2267.726, "text": "I'll let you talk about the specifics.", "speaker": "Unidentified speaker" }, { "id": "cue-291", "start": 2267.839, "end": 2268.226, "text": "That's the—.", "speaker": "Unidentified speaker" }, { "id": "cue-292", "start": 2268.323, "end": 2269.744, "text": "Yeah, the wonky budget law stuff is done.", "speaker": "Unidentified speaker" }, { "id": "cue-293", "start": 2269.857, "end": 2272.601, "text": "Yeah, stay for questions on this section.", "speaker": "Unidentified speaker" }, { "id": "cue-294", "start": 2272.682, "end": 2276.086, "text": "We'll go to questions, Q&A on this section in a few slides.", "speaker": "Unidentified speaker" }, { "id": "cue-295", "start": 2276.632, "end": 2288.317, "text": "So, um, so yeah, so as Allegra mentioned, um, the fall TAO includes actions to make this shift for a number of different funds.", "speaker": "Unidentified speaker" }, { "id": "cue-296", "start": 2288.894, "end": 2293.308, "text": "Um, and this slide kind of aligns with what Allegra just laid out.", "speaker": "Unidentified speaker" }, { "id": "cue-297", "start": 2293.645, "end": 2308.553, "text": "And then at the bottom, it states that the total change that we're recommending based on this guideline, these guidelines, and our review with bureaus of all the different contingencies and reserves citywide the total change is $1.08 billion.", "speaker": "Unidentified speaker" }, { "id": "cue-298", "start": 2310.858, "end": 2322.808, "text": "So that is $1.08 billion that would shift what is currently budgeted as contingency but would become budgeted as RFE, as reserve for future expenditure, to improve that distinction and transparency.", "speaker": "Unidentified speaker" }, { "id": "cue-299", "start": 2324.805, "end": 2331.33, "text": "And the next slide has a little bit more of a breakdown of what that looks like across the different funds, but I do want to hit this thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-300", "start": 2331.378, "end": 2340.114, "text": "I want to make this point clearly because it will be significant because it is still sort of in the budget, but it is not appropriated.", "speaker": "Unidentified speaker" }, { "id": "cue-301", "start": 2340.563, "end": 2351.559, "text": "And so importantly, when we report out the number of our total budget that is appropriated by City Council every year, it will be lower by $1.08 billion as a result of this change.", "speaker": "Unidentified speaker" }, { "id": "cue-302", "start": 2352.2, "end": 2366.005, "text": "And so we're actually going to put out a press release about this next week and have it clearly on our website so that So when it's in the press in the spring, we can point back to this explainer and this moment when we said, this is why we're doing this.", "speaker": "Unidentified speaker" }, { "id": "cue-303", "start": 2366.697, "end": 2371.889, "text": "And it will look funny when we run the year-over-year numbers as a result of this change.", "speaker": "Unidentified speaker" }, { "id": "cue-304", "start": 2374.254, "end": 2384.103, "text": "But sort of separate aside on what numbers are the most useful to look at when we're talking about total budget, but for this purpose, that is one of the reasons we wanted to do it.", "speaker": "Unidentified speaker" }, { "id": "cue-305", "start": 2384.153, "end": 2384.492, "text": "Councilor Smith.", "speaker": "Jamie Dunphy" }, { "id": "cue-306", "start": 2384.607, "end": 2385.323, "text": "To highlight that.", "speaker": "Unidentified speaker" }, { "id": "cue-307", "start": 2388.146, "end": 2395.655, "text": "This slide, I couldn't list every fund for space, but these are the largest shifts by dollar value.", "speaker": "Unidentified speaker" }, { "id": "cue-308", "start": 2397.51, "end": 2405.151, "text": "The biggest one is PSEF, and again, this is just because they have a clear 5-year spending plan.", "speaker": "Unidentified speaker" }, { "id": "cue-309", "start": 2406.55, "end": 2412.136, "text": "And so rather than having the entire amount for that 5-year spending plan that's that's outside the current fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-310", "start": 2412.584, "end": 2414.523, "text": "In contingency, it splits out.", "speaker": "Unidentified speaker" }, { "id": "cue-311", "start": 2414.587, "end": 2427.389, "text": "It remains— there's a significant amount that remains in true contingency, and there is an amount, about $300 million, that is for future fiscal years that moves to reserve for future expenditure.", "speaker": "Unidentified speaker" }, { "id": "cue-312", "start": 2427.469, "end": 2434.583, "text": "And as Liger was saying, if for some reason council wanted to make a decision to pull some of that forward, you could still access that money and pull it forward.", "speaker": "Unidentified speaker" }, { "id": "cue-313", "start": 2434.759, "end": 2438.717, "text": "It's just differentiating between the 2 different purposes of those funds.", "speaker": "Unidentified speaker" }, { "id": "cue-314", "start": 2438.781, "end": 2438.925, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-315", "start": 2441.676, "end": 2450.408, "text": "I won't go through each of the others, but, you know, they're some of the biggest funds in the city, so it's kind of no surprise that they have the largest contingencies and the largest shifts.", "speaker": "Unidentified speaker" }, { "id": "cue-316", "start": 2451.051, "end": 2464.799, "text": "A lot of them also are capital funds that do a lot of capital investment, and so they have these large multi-year projects that, you know, and they have capital replacement needs out in future years.", "speaker": "Unidentified speaker" }, { "id": "cue-317", "start": 2464.849, "end": 2464.966, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-318", "start": 2467.1, "end": 2475.6, "text": "This again, all the detail will be provided to back this up, and those 23 other funds that are added together at the bottom will be broken out.", "speaker": "Unidentified speaker" }, { "id": "cue-319", "start": 2476.963, "end": 2482.528, "text": "Okay, that is the conclusion of the slides for the first section, so we can do Q&A.", "speaker": "Unidentified speaker" }, { "id": "cue-320", "start": 2482.656, "end": 2486.713, "text": "And maybe if you have questions on the contingencies first, we can do that.", "speaker": "Unidentified speaker" }, { "id": "cue-321", "start": 2487.163, "end": 2487.884, "text": "Absolutely.", "speaker": "Jamie Dunphy" }, { "id": "cue-322", "start": 2488.029, "end": 2490.963, "text": "Colleagues, feel free to jump into the queue if anyone has any questions about this section.", "speaker": "Jamie Dunphy" }, { "id": "cue-323", "start": 2491.69, "end": 2493.267, "text": "Prioritizing our time around contingencies.", "speaker": "Jamie Dunphy" }, { "id": "cue-324", "start": 2494.928, "end": 2499.971, "text": "Oh, Councilor Smith, there we go.", "speaker": "Jamie Dunphy" }, { "id": "cue-325", "start": 2504.018, "end": 2504.973, "text": "Thank you, Council President.", "speaker": "Loretta Smith" }, { "id": "cue-326", "start": 2505.054, "end": 2509.068, "text": "Thank you all for, for giving this, um, presentation.", "speaker": "Loretta Smith" }, { "id": "cue-327", "start": 2510.315, "end": 2519.38, "text": "And in terms of the encumbrances, uh, we had $4.5 million In encumbrances?", "speaker": "Loretta Smith" }, { "id": "cue-328", "start": 2520.042, "end": 2537.174, "text": "I thought the encumbrances were not outside of the budget, that they were already in the budget with existing money from the previous budget or the existing fiscal year, and that they don't get paid for out of contingency.", "speaker": "Loretta Smith" }, { "id": "cue-329", "start": 2537.272, "end": 2542.218, "text": "They get paid for out of the money they already have because we thought that they were going to pay the whole thing.", "speaker": "Loretta Smith" }, { "id": "cue-330", "start": 2543.9, "end": 2544.171, "text": "Yeah.", "speaker": "Loretta Smith" }, { "id": "cue-331", "start": 2544.272, "end": 2549.92, "text": "If, if our expectation is what budget law says that their expectation is that it's going to be spent in that fiscal year.", "speaker": "Loretta Smith" }, { "id": "cue-332", "start": 2550.513, "end": 2550.849, "text": "Right.", "speaker": "Loretta Smith" }, { "id": "cue-333", "start": 2551.122, "end": 2560.304, "text": "So, um, the encumbrance— I'm going to come back to the specifics behind that $4.6 million in the encumbrance carryovers later, but it is not funded out of contingency.", "speaker": "Unidentified speaker" }, { "id": "cue-334", "start": 2560.384, "end": 2571.232, "text": "So basically, the, the sort of example scenario is you have a project— say we had a project last year and we were paying bills up until the end of the fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-335", "start": 2572.243, "end": 2579.004, "text": "There may, in some cases, there's a certain amount left over from their budget, and these are general fund bureaus, right?", "speaker": "Unidentified speaker" }, { "id": "cue-336", "start": 2579.053, "end": 2581.751, "text": "So if we didn't pull it forward, it would fall back into the general fund.", "speaker": "Unidentified speaker" }, { "id": "cue-337", "start": 2582.201, "end": 2590.103, "text": "There's a certain amount left over from their budget, not from contingency, but from their external materials and services budget at the end of the fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-338", "start": 2590.858, "end": 2597.909, "text": "And they had to keep it open, essentially protect that budget because they might have had bills come due in June.", "speaker": "Unidentified speaker" }, { "id": "cue-339", "start": 2598.422, "end": 2600.972, "text": "And so that's the scenario where they're pulling the money forward.", "speaker": "Unidentified speaker" }, { "id": "cue-340", "start": 2601.132, "end": 2605.927, "text": "But it is, it's external materials and services money that would appear as underspending.", "speaker": "Unidentified speaker" }, { "id": "cue-341", "start": 2606.12, "end": 2614.154, "text": "And then they're saying now this fiscal year, actually, we need that underspending from last year to pay for that project this year.", "speaker": "Unidentified speaker" }, { "id": "cue-342", "start": 2614.218, "end": 2617.474, "text": "But we'll talk more about the details of that later in this presentation.", "speaker": "Unidentified speaker" }, { "id": "cue-343", "start": 2617.89, "end": 2619.959, "text": "And so that's considered an encumbrance?", "speaker": "Loretta Smith" }, { "id": "cue-344", "start": 2621.098, "end": 2630.126, "text": "Yeah, the encumbrance is the, um, is the sort action within the fiscal year to sort of hang on to the budget for a contract, right?", "speaker": "Unidentified speaker" }, { "id": "cue-345", "start": 2630.335, "end": 2631.329, "text": "That's the part that's—.", "speaker": "Unidentified speaker" }, { "id": "cue-346", "start": 2631.457, "end": 2643.003, "text": "So for example, I had a— oh, it was a $30 million spend for software and some other fees that were associated with software.", "speaker": "Loretta Smith" }, { "id": "cue-347", "start": 2643.869, "end": 2647.012, "text": "And I set that aside with my '25-'26 budget.", "speaker": "Loretta Smith" }, { "id": "cue-348", "start": 2647.878, "end": 2657.55, "text": "And when we were going into this new budget, they said it was going to be This can be encumbered because you started this in this fiscal year.", "speaker": "Loretta Smith" }, { "id": "cue-349", "start": 2658.417, "end": 2673.736, "text": "So my thought was that, that, that money that I had set aside, that that automatically comes over or set in a different pot that's encumbered, and it has nothing to do with the money that I have for this fiscal year.", "speaker": "Loretta Smith" }, { "id": "cue-350", "start": 2674.522, "end": 2677.458, "text": "You just take it out of that other pot that we set aside.", "speaker": "Loretta Smith" }, { "id": "cue-351", "start": 2677.57, "end": 2677.795, "text": "Yes.", "speaker": "Loretta Smith" }, { "id": "cue-352", "start": 2678.148, "end": 2699.515, "text": "So this is really confusing to me because it sounds like if you've had any, um, if I had any, uh, unused monies, that that money is going to be used instead of the money that I thought was being moved into a separate pot of money that of my encumbered dollars from the current fiscal year.", "speaker": "Loretta Smith" }, { "id": "cue-353", "start": 2700.751, "end": 2704.315, "text": "Councilor, let me try and see if I can shed some light on it.", "speaker": "Jonas Biery" }, { "id": "cue-354", "start": 2705.102, "end": 2707.639, "text": "'Cause I think there's kind of 2 different things that are happening.", "speaker": "Jonas Biery" }, { "id": "cue-355", "start": 2707.751, "end": 2709.1, "text": "There's bureau money and then there's—.", "speaker": "Loretta Smith" }, { "id": "cue-356", "start": 2709.1, "end": 2710.224, "text": "And they're overlapping, right?", "speaker": "Jonas Biery" }, { "id": "cue-357", "start": 2710.304, "end": 2714.302, "text": "And so the first is in your example of $30 million.", "speaker": "Jonas Biery" }, { "id": "cue-358", "start": 2714.799, "end": 2719.809, "text": "$30 million is sort of budgeted, encumbered, expected to be spent in this current fiscal year.", "speaker": "Jonas Biery" }, { "id": "cue-359", "start": 2720.419, "end": 2726.504, "text": "And we thought we were going to spend $30 million and we only spent $25 because the project didn't get delivered by June.", "speaker": "Jonas Biery" }, { "id": "cue-360", "start": 2726.921, "end": 2732.09, "text": "So there's $5 million left unspent that we want to continue into the next budget.", "speaker": "Jonas Biery" }, { "id": "cue-361", "start": 2732.138, "end": 2734.416, "text": "So it's the same kind of dollar.", "speaker": "Jonas Biery" }, { "id": "cue-362", "start": 2734.544, "end": 2736.357, "text": "We're not having it come from a different pot.", "speaker": "Jonas Biery" }, { "id": "cue-363", "start": 2736.469, "end": 2740.511, "text": "We're saying we had this $5 million remaining that we didn't spend.", "speaker": "Jonas Biery" }, { "id": "cue-364", "start": 2740.559, "end": 2741.875, "text": "We know we need to spend it next year.", "speaker": "Jonas Biery" }, { "id": "cue-365", "start": 2742.324, "end": 2745.42, "text": "Let's take that encumbrance and carry it over to the next year.", "speaker": "Jonas Biery" }, { "id": "cue-366", "start": 2746.27, "end": 2746.51, "text": "Okay.", "speaker": "Jonas Biery" }, { "id": "cue-367", "start": 2747.056, "end": 2758.909, "text": "Separately and simultaneously, we're making adjustments to total fund balance, which lead— the hypothetical example that Ruth gave— that leads to potential changes in contingency.", "speaker": "Jonas Biery" }, { "id": "cue-368", "start": 2760.802, "end": 2765.966, "text": "So I think there's two— if I'm understanding the question, there's sort of two things happening simultaneously.", "speaker": "Jonas Biery" }, { "id": "cue-369", "start": 2766.062, "end": 2777.865, "text": "One is the encumbrance carryovers, which again we're going to talk about in a little more detail and separately, but simultaneously the math around the change in contingency and fund balance.", "speaker": "Jonas Biery" }, { "id": "cue-370", "start": 2779.212, "end": 2790.23, "text": "So another way to think of it is if we had in that example, that $30 million example, if we said We do need to carry some money over, but we only need to carry $4 million.", "speaker": "Jonas Biery" }, { "id": "cue-371", "start": 2790.23, "end": 2791.69, "text": "We don't need the full $30 million.", "speaker": "Jonas Biery" }, { "id": "cue-372", "start": 2791.69, "end": 2793.58, "text": "Now we only need to spend $29 million.", "speaker": "Jonas Biery" }, { "id": "cue-373", "start": 2794.07, "end": 2797.93, "text": "So we're not going to carry— we're not going to do an encumbrance carryover of $5 million.", "speaker": "Jonas Biery" }, { "id": "cue-374", "start": 2797.93, "end": 2800.95, "text": "We're only going to do an encumbrance carryover of $4 million.", "speaker": "Jonas Biery" }, { "id": "cue-375", "start": 2801.23, "end": 2807.71, "text": "And that's some of the analysis that we've really done more deeply is to make sure that those encumbrance carryovers are accurate and needed.", "speaker": "Jonas Biery" }, { "id": "cue-376", "start": 2807.71, "end": 2810.77, "text": "In that example, there's $1 million left, right?", "speaker": "Jonas Biery" }, { "id": "cue-377", "start": 2810.77, "end": 2812.47, "text": "So that $1 million in theory—.", "speaker": "Jonas Biery" }, { "id": "cue-378", "start": 2812.47, "end": 2812.55, "text": "That's not true.", "speaker": "Jonas Biery" }, { "id": "cue-379", "start": 2812.813, "end": 2818.386, "text": "Would move to fund balance and become a consideration for the future year.", "speaker": "Jonas Biery" }, { "id": "cue-380", "start": 2818.515, "end": 2819.836, "text": "Right, right.", "speaker": "Loretta Smith" }, { "id": "cue-381", "start": 2821.56, "end": 2821.771, "text": "Thank you.", "speaker": "Loretta Smith" }, { "id": "cue-382", "start": 2823.299, "end": 2823.852, "text": "Thank you, Councilor.", "speaker": "Jamie Dunphy" }, { "id": "cue-383", "start": 2824.194, "end": 2824.99, "text": "Thank you, Councilor Smith.", "speaker": "Jamie Dunphy" }, { "id": "cue-384", "start": 2825.072, "end": 2825.738, "text": "Councilor Pirtle-Guiney.", "speaker": "Jamie Dunphy" }, { "id": "cue-385", "start": 2826.307, "end": 2827.478, "text": "Thank you, Council President.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-386", "start": 2829.236, "end": 2833.108, "text": "I appreciate this overview of what's changing between contingency and reserves.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-387", "start": 2833.302, "end": 2842.612, "text": "I just want to make sure that I understand what I think were more straightforward pieces of contingency and reserves and whether they staying in their current categories or not.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-388", "start": 2844.576, "end": 2851.558, "text": "So money put aside for cost overruns on a construction project, that continues to be contingency?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-389", "start": 2853.32, "end": 2864.977, "text": "Yeah, I think by and large, unless it was set aside for— unless you wouldn't— you're not going to know about it until 3 years out and you're waiting until that 3 years out time to assess whether you need it.", "speaker": "Unidentified speaker" }, { "id": "cue-390", "start": 2865.042, "end": 2868.26, "text": "But yeah, I think generally, like We're doing a construction project right now.", "speaker": "Unidentified speaker" }, { "id": "cue-391", "start": 2868.372, "end": 2872.161, "text": "We don't know exactly how much it's going to cost, so we've got a little extra in case it goes over.", "speaker": "Unidentified speaker" }, { "id": "cue-392", "start": 2872.386, "end": 2873.414, "text": "That would stay in contingency.", "speaker": "Unidentified speaker" }, { "id": "cue-393", "start": 2873.687, "end": 2883.69, "text": "Okay, and then I'm gonna use a very imprecise term, but I'll say true what-if contingency.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-394", "start": 2883.738, "end": 2898.302, "text": "So the BLT fund that's set aside, the percentage of our budget that through our budget policies we set aside Every year, those what we have called contingencies in the past, are those still contingencies?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-395", "start": 2898.799, "end": 2921.062, "text": "Yeah, the only real shift of those sort of regular kind of general fund contingencies is we've had a confusingly labeled commitment item called major maintenance reserves, and that that would in many cases shift to a later year.", "speaker": "Unidentified speaker" }, { "id": "cue-396", "start": 2921.127, "end": 2933.079, "text": "So if you're building a new structure and you know it's going to need maintenance at some point in the future, and you're saving for that future maintenance on this new building, you would put that into RFE.", "speaker": "Unidentified speaker" }, { "id": "cue-397", "start": 2933.704, "end": 2940.786, "text": "And some of that type of contingency— some of that type of funding was held in contingency previously, and we've shifted some of it.", "speaker": "Unidentified speaker" }, { "id": "cue-398", "start": 2941.571, "end": 2945.929, "text": "Some of it, again, to your point, it might be needed this year, and so we've left that part in contingency.", "speaker": "Unidentified speaker" }, { "id": "cue-399", "start": 2946.427, "end": 2975.698, "text": "And if I may, I would just add the sum of it is actually kind of important because the work that's been done, I don't want to lose sight of the fact that CBO team and dozens of others have put in many, many hours to do that analysis that we frankly haven't really done meaningfully in the past to identify what the sum of it is and why so that we can be intentional and direct and ultimately transparent to the public and to you about why something is in a contingency.", "speaker": "Jonas Biery" }, { "id": "cue-400", "start": 2975.795, "end": 2976.019, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-401", "start": 2976.388, "end": 2978.664, "text": "Expected to be spent this year versus why is it not.", "speaker": "Jonas Biery" }, { "id": "cue-402", "start": 2979.177, "end": 2987.562, "text": "And that's work I assume that your team, Ruth, is doing with our bureaus and part of that work to have a more centralized understanding of our budgeting within your office.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-403", "start": 2988.059, "end": 2990.816, "text": "Yeah, we've sort of coordinated that work.", "speaker": "Unidentified speaker" }, { "id": "cue-404", "start": 2990.864, "end": 2991.874, "text": "We've gathered all the data.", "speaker": "Unidentified speaker" }, { "id": "cue-405", "start": 2991.922, "end": 2994.263, "text": "We will share it with you later this week.", "speaker": "Unidentified speaker" }, { "id": "cue-406", "start": 2994.872, "end": 3007.914, "text": "And I think in the future, we're also looking at ways— this goes to the later part of the conversation— in the budget book to kind of have more explanation of what different contingencies and reserves are for.", "speaker": "Unidentified speaker" }, { "id": "cue-407", "start": 3008.123, "end": 3024.437, "text": "That's been pretty scant in the past, and so hoping to institute that so it's transparent, you know, as you all are reading through and saying, oh, okay, this fund has a contingency for this much and an RFE of this much, you know, do we want to pull some of the RFE forward?", "speaker": "Unidentified speaker" }, { "id": "cue-408", "start": 3024.501, "end": 3026.524, "text": "Is this contingency the right size, et cetera?", "speaker": "Unidentified speaker" }, { "id": "cue-409", "start": 3026.588, "end": 3027.327, "text": "Okay.", "speaker": "Angelita Morillo" }, { "id": "cue-410", "start": 3027.937, "end": 3048.336, "text": "Should we expect one of the outcomes of this change to be that we see fewer instances of dollars being carried over multiple years in a row as they remain in a fund unspent because they're being moved from contingency to that longer-range reserve, which is outside of that normal budgeting process?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-411", "start": 3048.673, "end": 3051.738, "text": "So I— interestingly, I don't think that will be the result.", "speaker": "Unidentified speaker" }, { "id": "cue-412", "start": 3051.786, "end": 3056.781, "text": "It seems like it should be, but it will still fall to fund balance and be reappropriated.", "speaker": "Unidentified speaker" }, { "id": "cue-413", "start": 3056.861, "end": 3060.346, "text": "It just— you would expect, you know, oops, sorry.", "speaker": "Unidentified speaker" }, { "id": "cue-414", "start": 3060.764, "end": 3068.346, "text": "If PSEF has a $300 million RFE number, we expect, you know, if council doesn't change it, that's still going to be there.", "speaker": "Unidentified speaker" }, { "id": "cue-415", "start": 3068.426, "end": 3074.305, "text": "It will fall to balance at the end of the fiscal year in PSEF, and they'll pick it up in the fall and rebudget it as RFE.", "speaker": "Unidentified speaker" }, { "id": "cue-416", "start": 3074.658, "end": 3074.835, "text": "Got it.", "speaker": "Angelita Morillo" }, { "id": "cue-417", "start": 3074.98, "end": 3078.256, "text": "So we will still go through that technical process.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-418", "start": 3079.316, "end": 3080.68, "text": "But it will be within the new category.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-419", "start": 3081.098, "end": 3087.084, "text": "Council President, can I ask a question on an unrelated slide that we have been through, or do you want this to just be about contingencies and reserves?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-420", "start": 3087.421, "end": 3088.239, "text": "Anything we've seen so far.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-421", "start": 3088.48, "end": 3099.505, "text": "Okay, on the major non-general fund balance adjustments, there were the 2 largest funds there say that they were because of a bond issuance delay.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-422", "start": 3100.179, "end": 3108.056, "text": "Is that because of a delay in the work or because of an issue with the bond issuance or because of changes in the markets that you're expecting in the future?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-423", "start": 3108.52, "end": 3113.825, "text": "And when should we expect to see those bonds sold, and does that have any effect on the timeline for the projects?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-424", "start": 3113.969, "end": 3115.716, "text": "Yeah, no, those are good questions all.", "speaker": "Jonas Biery" }, { "id": "cue-425", "start": 3116.132, "end": 3122.286, "text": "Um, so I think in the case of the water bonds, um, it has— they have in fact now been issued.", "speaker": "Jonas Biery" }, { "id": "cue-426", "start": 3122.702, "end": 3127.879, "text": "Uh, it was just a matter of not falling within the fiscal year end the way we thought they would.", "speaker": "Jonas Biery" }, { "id": "cue-427", "start": 3128.472, "end": 3140.141, "text": "Um, and I'll just note that's, that's actually having that kind of a fund balance adjustment and a delay is not uncommon 'cause sometimes we don't exactly know what the timeline is to do that issuance.", "speaker": "Jonas Biery" }, { "id": "cue-428", "start": 3140.189, "end": 3145.215, "text": "So we have to budget it in the earliest year we think it might happen so that we have that appropriation.", "speaker": "Jonas Biery" }, { "id": "cue-429", "start": 3146.387, "end": 3150.434, "text": "It's way more often that it gets delayed than it gets accelerated.", "speaker": "Jonas Biery" }, { "id": "cue-430", "start": 3150.482, "end": 3154.465, "text": "And so that often means we do have to sort of delay that issuance and it falls into the next fiscal year.", "speaker": "Jonas Biery" }, { "id": "cue-431", "start": 3154.513, "end": 3166.071, "text": "So that's just an indicative of needing to do the planning ahead so we have the earliest possible budget authority but ultimately we issue it at a timeline that matches the project and repayment capacity.", "speaker": "Jonas Biery" }, { "id": "cue-432", "start": 3166.135, "end": 3175.569, "text": "But we shouldn't worry that there are project delays or that we are playing the market in such a way that it wasn't a good time to sell the bonds?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-433", "start": 3176.547, "end": 3177.237, "text": "Yeah, correct.", "speaker": "Jonas Biery" }, { "id": "cue-434", "start": 3177.285, "end": 3181.2, "text": "I mean, these are not— the bond delay is not indicative necessarily of a project delay.", "speaker": "Jonas Biery" }, { "id": "cue-435", "start": 3181.457, "end": 3181.729, "text": "It can.", "speaker": "Jonas Biery" }, { "id": "cue-436", "start": 3181.858, "end": 3184.826, "text": "If the project is delayed, we certainly would also delay the bond issue.", "speaker": "Jonas Biery" }, { "id": "cue-437", "start": 3185.628, "end": 3190.346, "text": "And then just for transparency, uh, we don't, we don't play the market in that way.", "speaker": "Jonas Biery" }, { "id": "cue-438", "start": 3190.587, "end": 3195.257, "text": "Um, I mean, we certainly wouldn't issue if we knew it was a very, very volatile, difficult market.", "speaker": "Jonas Biery" }, { "id": "cue-439", "start": 3195.722, "end": 3203.121, "text": "Um, but we typically issue bonds when we, um, when we need the money and don't, and don't try to, um, be, be tricky about timing the market in that way.", "speaker": "Jonas Biery" }, { "id": "cue-440", "start": 3203.426, "end": 3203.779, "text": "Thank you.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-441", "start": 3204.71, "end": 3204.966, "text": "Thank you.", "speaker": "Mitch Green" }, { "id": "cue-442", "start": 3205.432, "end": 3206.33, "text": "Thank you, Councilor Pirtle-Guiney.", "speaker": "Jamie Dunphy" }, { "id": "cue-443", "start": 3206.411, "end": 3206.94, "text": "Councilor Green.", "speaker": "Jamie Dunphy" }, { "id": "cue-444", "start": 3207.935, "end": 3208.256, "text": "Thank you.", "speaker": "Mitch Green" }, { "id": "cue-445", "start": 3208.481, "end": 3210.792, "text": "Um, thanks for the presentation.", "speaker": "Mitch Green" }, { "id": "cue-446", "start": 3210.888, "end": 3212.686, "text": "I, I, I really like it so far.", "speaker": "Mitch Green" }, { "id": "cue-447", "start": 3212.83, "end": 3216.916, "text": "I think it's I think we're improving, especially the encumbrance carryover piece.", "speaker": "Mitch Green" }, { "id": "cue-448", "start": 3217.077, "end": 3219.99, "text": "I feel like just like you guys listened and we're doing the work.", "speaker": "Mitch Green" }, { "id": "cue-449", "start": 3221.44, "end": 3223.922, "text": "One specific question, just trying to track the numbers here.", "speaker": "Mitch Green" }, { "id": "cue-450", "start": 3224.841, "end": 3227.323, "text": "The general fund returns all make sense.", "speaker": "Mitch Green" }, { "id": "cue-451", "start": 3227.371, "end": 3229.854, "text": "It's $16.5 million-ish, somewhere around there.", "speaker": "Mitch Green" }, { "id": "cue-452", "start": 3231.552, "end": 3235.158, "text": "How is it different from the ending balance?", "speaker": "Mitch Green" }, { "id": "cue-453", "start": 3235.675, "end": 3239.7, "text": "I know we're going to get that into a later slide, but there's about a $2 million delta that I can't square in my head.", "speaker": "Mitch Green" }, { "id": "cue-454", "start": 3240.037, "end": 3240.902, "text": "Yeah, great question.", "speaker": "Unidentified speaker" }, { "id": "cue-455", "start": 3241.655, "end": 3243.257, "text": "There are 2 reasons it's different.", "speaker": "Unidentified speaker" }, { "id": "cue-456", "start": 3243.402, "end": 3247.84, "text": "The first is that I'm counting the spring returns on this slide.", "speaker": "Unidentified speaker" }, { "id": "cue-457", "start": 3248.289, "end": 3256.204, "text": "Some of that money actually got spent last year, and so it didn't appear in the ending fund balance because we needed it to get through the fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-458", "start": 3256.252, "end": 3257.55, "text": "So that's reason number one.", "speaker": "Unidentified speaker" }, { "id": "cue-459", "start": 3257.998, "end": 3260.578, "text": "Reason number 2 is this is just the expenditure side.", "speaker": "Unidentified speaker" }, { "id": "cue-460", "start": 3260.626, "end": 3267.035, "text": "It doesn't show the revenue portion, and our general fund discretionary revenues came in about $2 million under budget.", "speaker": "Unidentified speaker" }, { "id": "cue-461", "start": 3268.493, "end": 3269.65, "text": "Once all was said and done.", "speaker": "Unidentified speaker" }, { "id": "cue-462", "start": 3269.795, "end": 3271.338, "text": "So there's an adjustment there.", "speaker": "Unidentified speaker" }, { "id": "cue-463", "start": 3271.531, "end": 3275.146, "text": "Like the fund balance adds together the change in expenditure and the change in revenue.", "speaker": "Unidentified speaker" }, { "id": "cue-464", "start": 3275.468, "end": 3278.155, "text": "And so this is just isolating the return.", "speaker": "Unidentified speaker" }, { "id": "cue-465", "start": 3278.22, "end": 3281.865, "text": "So it's just slightly different things, but it's close to the same number.", "speaker": "Unidentified speaker" }, { "id": "cue-466", "start": 3283, "end": 3283.771, "text": "Okay, that's good enough for me.", "speaker": "Mitch Green" }, { "id": "cue-467", "start": 3283.915, "end": 3284.156, "text": "Thanks.", "speaker": "Mitch Green" }, { "id": "cue-468", "start": 3286.068, "end": 3287.209, "text": "Thank you very much, Councilor Green.", "speaker": "Jamie Dunphy" }, { "id": "cue-469", "start": 3287.289, "end": 3287.98, "text": "Councilor Zimmerman.", "speaker": "Jamie Dunphy" }, { "id": "cue-470", "start": 3288.96, "end": 3289.169, "text": "Thanks.", "speaker": "Eric Zimmerman" }, { "id": "cue-471", "start": 3289.217, "end": 3295.421, "text": "So looking at what was moving from contingency to the reserves, can you talk a little bit about who makes that decision?", "speaker": "Eric Zimmerman" }, { "id": "cue-472", "start": 3297.83, "end": 3300.696, "text": "Ultimately, council has to decide.", "speaker": "Unidentified speaker" }, { "id": "cue-473", "start": 3300.776, "end": 3303.691, "text": "It's a budget action to move from contingency to reserves.", "speaker": "Unidentified speaker" }, { "id": "cue-474", "start": 3303.739, "end": 3306.219, "text": "And again, we're going to provide the full details on this.", "speaker": "Unidentified speaker" }, { "id": "cue-475", "start": 3306.557, "end": 3306.96, "text": "This was—.", "speaker": "Unidentified speaker" }, { "id": "cue-476", "start": 3306.96, "end": 3307.363, "text": "In the TAO?", "speaker": "Raymond C. Lee" }, { "id": "cue-477", "start": 3307.525, "end": 3307.622, "text": "Yeah.", "speaker": "Angelita Morillo" }, { "id": "cue-478", "start": 3307.686, "end": 3308.69, "text": "Is that when you're going to provide it?", "speaker": "Unidentified speaker" }, { "id": "cue-479", "start": 3308.738, "end": 3309.79, "text": "Like the end of this week.", "speaker": "Unidentified speaker" }, { "id": "cue-480", "start": 3310.437, "end": 3314.353, "text": "The spreadsheet has every line, like within a given fund, right?", "speaker": "Unidentified speaker" }, { "id": "cue-481", "start": 3314.401, "end": 3319.431, "text": "Within the transportation fund, there's multiple lines of contingency with different actions happening.", "speaker": "Unidentified speaker" }, { "id": "cue-482", "start": 3320.127, "end": 3324.538, "text": "And so that has all the details and you can kind of assess and ask questions.", "speaker": "Unidentified speaker" }, { "id": "cue-483", "start": 3324.635, "end": 3329.964, "text": "And if there's some that seem wrong to you or you don't understand it, feel free to reach out.", "speaker": "Unidentified speaker" }, { "id": "cue-484", "start": 3330.997, "end": 3342.191, "text": "This was our joint sort of recommendation with the bureaus and the fund managers for each of the funds, along with our review and OIGRA's guidance on the budget law.", "speaker": "Unidentified speaker" }, { "id": "cue-485", "start": 3342.417, "end": 3347.762, "text": "Okay, so right now these are recommendations from the staff.", "speaker": "Eric Zimmerman" }, { "id": "cue-486", "start": 3348.245, "end": 3356.967, "text": "Can we go back a few slides to, um, it was— I think it was the, the ending fund.", "speaker": "Eric Zimmerman" }, { "id": "cue-487", "start": 3357.032, "end": 3361.818, "text": "There's another slide that showed some complete numbers, um, earlier in the presentation that I was hoping to ask about.", "speaker": "Eric Zimmerman" }, { "id": "cue-488", "start": 3363.376, "end": 3364.807, "text": "Uh, keep going.", "speaker": "Eric Zimmerman" }, { "id": "cue-489", "start": 3364.92, "end": 3365.241, "text": "Right here.", "speaker": "Raymond C. Lee" }, { "id": "cue-490", "start": 3365.402, "end": 3365.692, "text": "That one.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-491", "start": 3366.592, "end": 3377.475, "text": "All right, so we adopted a $600 million PISA fund and It's going to be $154 more million than we adopted just some 90 days ago?", "speaker": "Eric Zimmerman" }, { "id": "cue-492", "start": 3379.104, "end": 3379.717, "text": "Correct.", "speaker": "Unidentified speaker" }, { "id": "cue-493", "start": 3380.072, "end": 3380.136, "text": "Okay.", "speaker": "Angelita Morillo" }, { "id": "cue-494", "start": 3380.184, "end": 3380.232, "text": "Yeah.", "speaker": "Raymond C. Lee" }, { "id": "cue-495", "start": 3380.859, "end": 3384.379, "text": "And out of that, it's very preschool for all of us.", "speaker": "Eric Zimmerman" }, { "id": "cue-496", "start": 3384.926, "end": 3399.086, "text": "So our $750 million that's sitting in the bank account, $750 million that's sitting in the bank account, only $300 million of that will be in reserve based on the previous slide we just looked at.", "speaker": "Eric Zimmerman" }, { "id": "cue-497", "start": 3400.245, "end": 3406.742, "text": "And so based on the use of contingency, I'd like to reiterate, you mentioned earlier contingency.", "speaker": "Eric Zimmerman" }, { "id": "cue-498", "start": 3406.822, "end": 3409.61, "text": "And Allegro, remind us, how long did you spend at Multnomah County?", "speaker": "Eric Zimmerman" }, { "id": "cue-499", "start": 3410.513, "end": 3413.558, "text": "I was at Multnomah County for about 3 and a half years.", "speaker": "Unidentified speaker" }, { "id": "cue-500", "start": 3414.12, "end": 3414.893, "text": "They were great years for us.", "speaker": "Eric Zimmerman" }, { "id": "cue-501", "start": 3414.942, "end": 3415.748, "text": "Being your budget analyst.", "speaker": "Unidentified speaker" }, { "id": "cue-502", "start": 3415.844, "end": 3417.086, "text": "We appreciated your service there.", "speaker": "Jonas Biery" }, { "id": "cue-503", "start": 3417.86, "end": 3421.777, "text": "But the point that Allegro is making is contingency is supposed to be used in the year of.", "speaker": "Eric Zimmerman" }, { "id": "cue-504", "start": 3423.552, "end": 3435.695, "text": "Okay, I want to make sure that but if that's the case, just please clarify that we are then putting out— what's— we're putting out $400-some-odd million this year in PSF.", "speaker": "Eric Zimmerman" }, { "id": "cue-505", "start": 3435.791, "end": 3436.58, "text": "Is that accurate?", "speaker": "Eric Zimmerman" }, { "id": "cue-506", "start": 3437.336, "end": 3438.124, "text": "So my guess—.", "speaker": "Unidentified speaker" }, { "id": "cue-507", "start": 3438.124, "end": 3439.331, "text": "It's going to go into the community.", "speaker": "Eric Zimmerman" }, { "id": "cue-508", "start": 3442.187, "end": 3443.544, "text": "We'll get back to you on the details.", "speaker": "Unidentified speaker" }, { "id": "cue-509", "start": 3444.368, "end": 3452.23, "text": "I think what is happening is that in the outgoing grants, they encumber a full amount for multiple years.", "speaker": "Unidentified speaker" }, { "id": "cue-510", "start": 3452.667, "end": 3455.43, "text": "Now, that's a decision that could be changed.", "speaker": "Unidentified speaker" }, { "id": "cue-511", "start": 3455.736, "end": 3472.447, "text": "I think, and we will get back to you on the details, that they— that the $310 million that's on this later slide assumes they're encumbering multiple years of outgoing grants in one year, which means you have to have the budget in that year to support that multi-year encumbrance.", "speaker": "Unidentified speaker" }, { "id": "cue-512", "start": 3472.833, "end": 3477.959, "text": "The alternative would be to encumber only the one fiscal year at a time and then re-encumber it the next year.", "speaker": "Unidentified speaker" }, { "id": "cue-513", "start": 3478.007, "end": 3478.055, "text": "Okay.", "speaker": "Loretta Smith" }, { "id": "cue-514", "start": 3478.83, "end": 3492.17, "text": "Do you know, is that programming based upon the money that was in the bank in the first few years where we grew a lot more than we thought, or is it based on the amount of revenue that's coming in each year?", "speaker": "Eric Zimmerman" }, { "id": "cue-515", "start": 3492.26, "end": 3497.82, "text": "Now, I can understand, and I actually think it's a good practice to say, hey, we want to contract you for more than 1 year.", "speaker": "Eric Zimmerman" }, { "id": "cue-516", "start": 3497.82, "end": 3499.42, "text": "That makes a ton of sense to me.", "speaker": "Eric Zimmerman" }, { "id": "cue-517", "start": 3499.42, "end": 3505.02, "text": "And it's going to be a $1 million program every year for the next 5, and you don't have to reapply until 5.", "speaker": "Eric Zimmerman" }, { "id": "cue-518", "start": 3505.02, "end": 3505.62, "text": "I get that.", "speaker": "Eric Zimmerman" }, { "id": "cue-519", "start": 3505.62, "end": 3505.74, "text": "But it's not based on revenue.", "speaker": "Sameer Kanal" }, { "id": "cue-520", "start": 3506.684, "end": 3516.22, "text": "But this is a large enough amount of money that it seems like we're— we have encumbered funds that are not part of our yearly revenue.", "speaker": "Eric Zimmerman" }, { "id": "cue-521", "start": 3516.285, "end": 3519.993, "text": "We've encumbered some one-time that we don't expect that we're going to bring back.", "speaker": "Eric Zimmerman" }, { "id": "cue-522", "start": 3520.557, "end": 3522.33, "text": "Am I— that's somewhat accurate there?", "speaker": "Eric Zimmerman" }, { "id": "cue-523", "start": 3522.556, "end": 3533.437, "text": "Yeah, so right, if they're earning roughly $200 million a year, it's not exactly right, but if that were true, there may be more encumbrances than the total annual revenue.", "speaker": "Unidentified speaker" }, { "id": "cue-524", "start": 3534.11, "end": 3541.468, "text": "So it actually requires kind of, in a budgetary sense, relying on some of that fund balance to support those multi-year encumbrances.", "speaker": "Unidentified speaker" }, { "id": "cue-525", "start": 3541.902, "end": 3542.128, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-526", "start": 3542.546, "end": 3542.595, "text": "Yeah.", "speaker": "Unidentified speaker" }, { "id": "cue-527", "start": 3542.643, "end": 3557.286, "text": "So if we are bringing in about $200 million a year from that, and the change in fund balance is $154 million from when we adopted the budget 90 days ago, what did we account for 90 days ago in terms of the revenue in this?", "speaker": "Eric Zimmerman" }, { "id": "cue-528", "start": 3557.495, "end": 3563.336, "text": "And does $154 represent on top of the $200, or what does $154 represent?", "speaker": "Eric Zimmerman" }, { "id": "cue-529", "start": 3565.611, "end": 3570.819, "text": "I don't think it is an increase in— I don't think it is revenue coming in above forecast.", "speaker": "Unidentified speaker" }, { "id": "cue-530", "start": 3571.127, "end": 3571.288, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-531", "start": 3571.515, "end": 3576.191, "text": "But we can get you the full breakdown of the $154 million.", "speaker": "Unidentified speaker" }, { "id": "cue-532", "start": 3576.288, "end": 3576.66, "text": "Thanks.", "speaker": "Eric Zimmerman" }, { "id": "cue-533", "start": 3577.988, "end": 3587.778, "text": "I wanted— the reason I'm bringing this up is, right, you know, it was right when we got to office, several of you tried to catch the hair on my head on fire, and you were unsuccessful for several reasons.", "speaker": "Eric Zimmerman" }, { "id": "cue-534", "start": 3588.233, "end": 3593.562, "text": "But it was, why do we have a $500 million contingency fund for things that are not going to be used this year.", "speaker": "Eric Zimmerman" }, { "id": "cue-535", "start": 3593.915, "end": 3600.016, "text": "And so this put me on a very quick path, which was the City of Portland uses these words incorrectly.", "speaker": "Eric Zimmerman" }, { "id": "cue-536", "start": 3600.081, "end": 3614.018, "text": "And so thank you, Allegra, for highlighting that from kind of an outside perspective, because coming from 3 other governments, this was a very confusing first couple of budgets given how we use and don't use reserves and contingencies.", "speaker": "Eric Zimmerman" }, { "id": "cue-537", "start": 3614.066, "end": 3618.96, "text": "So I just want to give credit to aligning.", "speaker": "Eric Zimmerman" }, { "id": "cue-538", "start": 3619.219, "end": 3622.123, "text": "This is important work and all these bureaus have been doing it differently.", "speaker": "Eric Zimmerman" }, { "id": "cue-539", "start": 3622.707, "end": 3632.587, "text": "And I recognize the challenge from the central office to get 26 disparate organizations at times to align.", "speaker": "Eric Zimmerman" }, { "id": "cue-540", "start": 3632.635, "end": 3640.878, "text": "So thank you for that because we were, for the first 2 years of this new council's budget, we were using various words and descriptions.", "speaker": "Eric Zimmerman" }, { "id": "cue-541", "start": 3641.895, "end": 3646.162, "text": "And policy different from each bureau, right?", "speaker": "Eric Zimmerman" }, { "id": "cue-542", "start": 3646.226, "end": 3653.985, "text": "And that really did not make for good decision-making because it had to do with who was the last person to give you the definition book, and that's not great.", "speaker": "Eric Zimmerman" }, { "id": "cue-543", "start": 3654.324, "end": 3681.365, "text": "So I appreciate this work and will note, I'll get into more details with each of these programs and who set the number and set the goal, but this is the first step, colleagues, to saying we want a reserve that represents this ability to do this thing or this size of our ongoing to be able to react to a thing in the catastrophic moment, and then also what we think is the amount you should have in the savings for that year.", "speaker": "Eric Zimmerman" }, { "id": "cue-544", "start": 3681.446, "end": 3692.792, "text": "I think that's the area where our policy discussions can get really robust and frankly make some of the arguments that happen during budget season a little less live-wired because they're rooted in just basic policies of good governance.", "speaker": "Eric Zimmerman" }, { "id": "cue-545", "start": 3692.84, "end": 3696.75, "text": "So like, This is important work, and so thank you for that.", "speaker": "Eric Zimmerman" }, { "id": "cue-546", "start": 3697.203, "end": 3702.69, "text": "It's been challenging to see, but I think it will make us better decision makers in the out years.", "speaker": "Eric Zimmerman" }, { "id": "cue-547", "start": 3702.739, "end": 3703.521, "text": "So appreciate it.", "speaker": "Eric Zimmerman" }, { "id": "cue-548", "start": 3703.602, "end": 3704.432, "text": "Thank you, Council President.", "speaker": "Jonas Biery" }, { "id": "cue-549", "start": 3705.002, "end": 3706.044, "text": "Thank you very much, Councilor Zimmerman.", "speaker": "Jamie Dunphy" }, { "id": "cue-550", "start": 3706.739, "end": 3708.156, "text": "Okay, no one else in the queue.", "speaker": "Jamie Dunphy" }, { "id": "cue-551", "start": 3708.237, "end": 3709.364, "text": "Let's move on to section 2.", "speaker": "Jamie Dunphy" }, { "id": "cue-552", "start": 3710.991, "end": 3711.458, "text": "Great.", "speaker": "Loretta Smith" }, { "id": "cue-553", "start": 3711.715, "end": 3713.133, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-554", "start": 3713.551, "end": 3714.614, "text": "All right.", "speaker": "Unidentified speaker" }, { "id": "cue-555", "start": 3715.822, "end": 3716.964, "text": "All right.", "speaker": "Unidentified speaker" }, { "id": "cue-556", "start": 3717.028, "end": 3722.996, "text": "The next section of this presentation is focused on other than fund balance and contingencies, the actions that you're gonna see in the fall TAO.", "speaker": "Unidentified speaker" }, { "id": "cue-557", "start": 3723.044, "end": 3726.807, "text": "And there's a couple of different subsections.", "speaker": "Unidentified speaker" }, { "id": "cue-558", "start": 3727.244, "end": 3733.929, "text": "The first subsection is about sort of realignments and net-zero changes, so things that don't sort of draw resources.", "speaker": "Unidentified speaker" }, { "id": "cue-559", "start": 3737.73, "end": 3740.963, "text": "So the first— whoops, sorry.", "speaker": "Unidentified speaker" }, { "id": "cue-560", "start": 3742.386, "end": 3751.388, "text": "The first piece of this is the sort of follow-up to the core services realignment work that happened in the adopted budget process yes.", "speaker": "Unidentified speaker" }, { "id": "cue-561", "start": 3751.516, "end": 3752.67, "text": "For this fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-562", "start": 3753.633, "end": 3766.173, "text": "So the core services realignment was discussed with the goal of reducing duplication, creating more consistent citywide service model, and better aligning responsibility and accountability for core services.", "speaker": "Unidentified speaker" }, { "id": "cue-563", "start": 3766.83, "end": 3772.875, "text": "The adopted budget made the primary organizational and position changes that were effective July 1st.", "speaker": "Unidentified speaker" }, { "id": "cue-564", "start": 3773.421, "end": 3784.64, "text": "The implementation has been sort of phased so that we can maintain service continuity support employees through this transition and work through the operational details of bringing these functions together.", "speaker": "Unidentified speaker" }, { "id": "cue-565", "start": 3785.298, "end": 3798.886, "text": "And so what you're going to see in the fall TAO is the kind of technical budget alignment that we sort of knew would be required at some level as we do this implementation process for core services realignment.", "speaker": "Unidentified speaker" }, { "id": "cue-566", "start": 3800.155, "end": 3807.369, "text": "And so the adjustments that are included move position funding and the associated materials and services thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-567", "start": 3807.45, "end": 3816.194, "text": "And then we also moved the materials and services costs— sorry, move the materials and services costs with the position funding to better align the budgets to where the responsibility now sits.", "speaker": "Unidentified speaker" }, { "id": "cue-568", "start": 3817.41, "end": 3827.649, "text": "This was sort of a piece that was technically difficult in the adopted budget process, and so we came back and did that in this portion.", "speaker": "Unidentified speaker" }, { "id": "cue-569", "start": 3834.295, "end": 3835.837, "text": "Embedded service model.", "speaker": "Unidentified speaker" }, { "id": "cue-570", "start": 3836.705, "end": 3846.039, "text": "We need to make sure those resources sit in the correct places so that people can accurately monitor their budgets and the like in the current fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-571", "start": 3847.533, "end": 3852.096, "text": "These adjustments don't represent new programming or expansion of services.", "speaker": "Unidentified speaker" }, { "id": "cue-572", "start": 3852.931, "end": 3862.232, "text": "They're budget changes that are needed to implement the organizational decisions that were essentially made and included in the budget process.", "speaker": "Unidentified speaker" }, { "id": "cue-573", "start": 3862.896, "end": 3877.668, "text": "We expect some additional refinement to occur in the '27-'28 budget process, particularly around where the funding sits and the complex funding relationships that kind of still need— some of which still need to be resolved.", "speaker": "Unidentified speaker" }, { "id": "cue-574", "start": 3880.125, "end": 3884.785, "text": "The priority for this year is to make the transition thoughtfully while maintaining services.", "speaker": "Unidentified speaker" }, { "id": "cue-575", "start": 3885.319, "end": 3896.862, "text": "So the broader objective has not changed: more consistent, accountable, citywide model for core services with clearer ownership, better transparency, and the resources aligned with the responsibility.", "speaker": "Unidentified speaker" }, { "id": "cue-576", "start": 3897.679, "end": 3903.897, "text": "And DCA Warren is here and available for questions on this section.", "speaker": "Unidentified speaker" }, { "id": "cue-577", "start": 3904.971, "end": 3928.902, "text": "And the other thing just to note about these changes that's a little bit more technical is in the Um, TAO itself, there is a directive for reflecting certain changes that are included in the TAO in CAL, in our process to set the budgets for next— the base budgets for next fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-578", "start": 3929.447, "end": 3939.643, "text": "So there is a net increase in the general fund of $121,000 as a result of these changes that would be carried forward into next fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-579", "start": 3939.691, "end": 3939.787, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-580", "start": 3941.412, "end": 3957.566, "text": "A lot of, as you can kind of see on these slot— in the slide here, some of this, some of that has to do with changing the funding for positions that are— were part of core services realignment.", "speaker": "Unidentified speaker" }, { "id": "cue-581", "start": 3957.615, "end": 3966.371, "text": "So if positions were in, say, Public Works and now they're in general fund overhead, that results in a hit to the general fund.", "speaker": "Unidentified speaker" }, { "id": "cue-582", "start": 3966.419, "end": 3971.888, "text": "It's not that there's So it's not more positions or more cost happening.", "speaker": "Unidentified speaker" }, { "id": "cue-583", "start": 3971.985, "end": 3973.667, "text": "It's a shift in how they're being paid for.", "speaker": "Unidentified speaker" }, { "id": "cue-584", "start": 3976.34, "end": 3976.452, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-585", "start": 3976.532, "end": 3984.12, "text": "And then outside of core services realignment, the fall TAO includes 2 sort of realignments of staff within service areas.", "speaker": "Unidentified speaker" }, { "id": "cue-586", "start": 3984.57, "end": 3990.91, "text": "And these mainly include staff that work on budget and finance type functions within these service areas.", "speaker": "Unidentified speaker" }, { "id": "cue-587", "start": 3991.527, "end": 3997.351, "text": "Those staff were not included in the core services realignment yes.", "speaker": "Unidentified speaker" }, { "id": "cue-588", "start": 3998.256, "end": 4004.026, "text": "And they are specific to Community and Economic Development Service Area and the Public Works Service Area.", "speaker": "Unidentified speaker" }, { "id": "cue-589", "start": 4004.65, "end": 4015.351, "text": "I'll note that for both Public Safety and City Operations, they already have kind of cohesive enterprise services teams.", "speaker": "Unidentified speaker" }, { "id": "cue-590", "start": 4015.448, "end": 4030.394, "text": "And so the other 2 service areas are moving to reflect how the and so these changes don't change the number of FTE or significantly change the work they're doing.", "speaker": "Unidentified speaker" }, { "id": "cue-591", "start": 4030.458, "end": 4032.833, "text": "They just pull them into a service area team.", "speaker": "Unidentified speaker" }, { "id": "cue-592", "start": 4033.491, "end": 4045.106, "text": "The goals are somewhat similar to improve service delivery and provide more consistent practices, sort of pool resources for some bureaus that are smaller, don't have to do very much of a given thing.", "speaker": "Unidentified speaker" }, { "id": "cue-593", "start": 4045.234, "end": 4045.988, "text": "So it's efficiencies there.", "speaker": "Unidentified speaker" }, { "id": "cue-594", "start": 4046.101, "end": 4046.309, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-595", "start": 4046.439, "end": 4055.518, "text": "Of scale to do certain actions like that, and then cross-train staff on those different types of budget and finance things.", "speaker": "Unidentified speaker" }, { "id": "cue-596", "start": 4057.95, "end": 4058.062, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-597", "start": 4058.482, "end": 4063.614, "text": "So that's the other kind of major— those are the other major realignments that you'll see in the ordinance.", "speaker": "Unidentified speaker" }, { "id": "cue-598", "start": 4065.726, "end": 4069.045, "text": "Outside of the general fund, I just wanted to highlight a few things.", "speaker": "Unidentified speaker" }, { "id": "cue-599", "start": 4071.17, "end": 4071.727, "text": "BES.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-600", "start": 4072.337, "end": 4077.585, "text": "Has, uh, some draws on contingency of $13.5 million.", "speaker": "Unidentified speaker" }, { "id": "cue-601", "start": 4078.05, "end": 4086.043, "text": "These are to fund sort of urgent and unforeseen costs, some of which relate to the Lake Oswego, um, uh, treatment facility.", "speaker": "Unidentified speaker" }, { "id": "cue-602", "start": 4086.941, "end": 4090.007, "text": "The next is in the co-op program.", "speaker": "Unidentified speaker" }, { "id": "cue-603", "start": 4090.231, "end": 4101.789, "text": "Um, this would draw $350,000 of what is now— what would now be classified as reserved for future expenditure forward to use in the current fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-604", "start": 4103.603, "end": 4114.085, "text": "The third is the PPA Health Fund had higher— experienced higher claims costs than projected, and so this would draw down $1.5 million of the contingency in that fund.", "speaker": "Unidentified speaker" }, { "id": "cue-605", "start": 4114.567, "end": 4133.507, "text": "And then in Parks, there are multiple draws on Parks Levy contingency for a few different costs in the current fiscal year, including some pool repairs, graffiti removal, Programming support, small programming support in a few places, and some maintenance costs there.", "speaker": "Unidentified speaker" }, { "id": "cue-606", "start": 4135.617, "end": 4143.002, "text": "And again, there are complete details for all decision packages in the fall TAO are in exhibit 5 when you look at that.", "speaker": "Unidentified speaker" }, { "id": "cue-607", "start": 4145.769, "end": 4147.768, "text": "Okay.", "speaker": "Jonas Biery" }, { "id": "cue-608", "start": 4148.01, "end": 4148.188, "text": "All right.", "speaker": "Jonas Biery" }, { "id": "cue-609", "start": 4148.236, "end": 4149.026, "text": "So back to Jonas.", "speaker": "Jonas Biery" }, { "id": "cue-610", "start": 4149.22, "end": 4150.236, "text": "Yeah, thanks, Ruth.", "speaker": "Jonas Biery" }, { "id": "cue-611", "start": 4150.284, "end": 4156.774, "text": "So the next kind of category is talking about the business license tax stabilization reserve.", "speaker": "Jonas Biery" }, { "id": "cue-612", "start": 4156.839, "end": 4166.563, "text": "I'm realizing that We should probably just acknowledge that every single time you see or hear from me over the next year, you'll probably hear the word stabilization.", "speaker": "Jonas Biery" }, { "id": "cue-613", "start": 4166.996, "end": 4168.793, "text": "And so I'm leaning into that here again.", "speaker": "Jonas Biery" }, { "id": "cue-614", "start": 4170.045, "end": 4178.824, "text": "So the fiscal '26-'27 budget, adopted budget included an initial allocation.", "speaker": "Jonas Biery" }, { "id": "cue-615", "start": 4178.872, "end": 4182.885, "text": "It ended up at $3.5 million towards this new reserve concept.", "speaker": "Jonas Biery" }, { "id": "cue-616", "start": 4183.607, "end": 4188.309, "text": "That $3.5 million was around 1.6% of total BLT revenues.", "speaker": "Jonas Biery" }, { "id": "cue-617", "start": 4188.999, "end": 4195.884, "text": "Significantly lower than the 15% target that was indicated in the budget note.", "speaker": "Jonas Biery" }, { "id": "cue-618", "start": 4196.671, "end": 4202.866, "text": "That budget note also directed development of a policy to more formally guide creation of the reserve.", "speaker": "Jonas Biery" }, { "id": "cue-619", "start": 4203.363, "end": 4208.692, "text": "So we're now bringing that forward in an ordinance that will come alongside the TAO to create that policy.", "speaker": "Jonas Biery" }, { "id": "cue-620", "start": 4209.189, "end": 4214.245, "text": "And then we do expect to transfer a small amount via the TAO, and we'll talk about that in a minute as well.", "speaker": "Jonas Biery" }, { "id": "cue-621", "start": 4214.293, "end": 4214.469, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-622", "start": 4215.786, "end": 4222.628, "text": "But we wanted to sort of provide some space to talk about what does the policy, this new policy, actually do.", "speaker": "Jonas Biery" }, { "id": "cue-623", "start": 4222.853, "end": 4227.929, "text": "And I wanted to back up a little bit and just remind everyone about BLT, business license tax.", "speaker": "Jonas Biery" }, { "id": "cue-624", "start": 4228.796, "end": 4240.569, "text": "So while many locally based companies do also pay the business license tax, the vast majority of that revenue collection is driven by the net income of large national and multinational corporations.", "speaker": "Jonas Biery" }, { "id": "cue-625", "start": 4240.922, "end": 4250.429, "text": "And therefore are typically highly sensitive to national economic cycles, to taxpayer behavior, to financial market conditions, and federal tax policy changes.", "speaker": "Jonas Biery" }, { "id": "cue-626", "start": 4251.166, "end": 4270.357, "text": "And because of that kind of volatility, it has historically been true on occasion that revenues can decline by as much as 15 to 20% in a fiscal— in a single fiscal year as a result of economic downturns, as a result of federal tax policy changes, as we've experienced over the last couple budget cycles.", "speaker": "Jonas Biery" }, { "id": "cue-627", "start": 4270.453, "end": 4270.629, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-628", "start": 4271.235, "end": 4273.65, "text": "Or other events that may be outside the city's control.", "speaker": "Jonas Biery" }, { "id": "cue-629", "start": 4275.25, "end": 4286.306, "text": "For context, in fiscal '26-'27, BLT revenues are projected at approximately $220 million, which is nearly 30% of the total general fund discretionary revenue.", "speaker": "Jonas Biery" }, { "id": "cue-630", "start": 4286.354, "end": 4291.284, "text": "So a very important source to fund general fund expenses.", "speaker": "Jonas Biery" }, { "id": "cue-631", "start": 4293.102, "end": 4311.747, "text": "Establishing a reserve, establishing and funding a reserve specific to that volatility will protect the city against the potential forced reductions in the event of that unexpected revenue decline and supports the city's strategy to maintain a high credit rating and the financial benefits that that high credit rating provides.", "speaker": "Jonas Biery" }, { "id": "cue-632", "start": 4312.277, "end": 4328.471, "text": "So as proposed, the BLT Stabilization Reserve Policy is to reach a fully funded target of 15% of BLT revenues and to do that by funding incrementally from one-third, sort of the first one-third, of available discretionary resources.", "speaker": "Jonas Biery" }, { "id": "cue-633", "start": 4328.567, "end": 4332.567, "text": "And typically that would happen now in the fall TAO or in the adopted budget.", "speaker": "Jonas Biery" }, { "id": "cue-634", "start": 4333.707, "end": 4340.839, "text": "And so an upcoming slide is going to show how that's calculated for purposes of the fall TAO, assuming policy adoption.", "speaker": "Jonas Biery" }, { "id": "cue-635", "start": 4341.98, "end": 4347.104, "text": "The policy as drafted also sets expectations around conditions when the fund balance can be withdrawn.", "speaker": "Jonas Biery" }, { "id": "cue-636", "start": 4348.405, "end": 4353.715, "text": "It's a little bit funky Uh, wonky, to use the word that was used earlier.", "speaker": "Jonas Biery" }, { "id": "cue-637", "start": 4354.18, "end": 4365.462, "text": "Um, this policy element is, is kind of nested within the larger, uh, former policy— the larger policy that was formerly called FIN 2.03 around financial planning.", "speaker": "Jonas Biery" }, { "id": "cue-638", "start": 4366.039, "end": 4371.391, "text": "Um, so the idea is it just fits within that existing policy kind of category.", "speaker": "Jonas Biery" }, { "id": "cue-639", "start": 4371.984, "end": 4376.439, "text": "Additionally, the City Attorney's Office has recommended a couple of additional changes.", "speaker": "Jonas Biery" }, { "id": "cue-640", "start": 4376.615, "end": 4403.715, "text": "One making a handful of very, very technical administrative changes to update really language post-charter, taking out references to Office of Management and Finance and changes that don't substantially change the actual meaning of the policy, and recommending transferring the full language from the FIN 2.03, including the new BLT reserve element, to become a new Portland City Code 5.90.", "speaker": "Jonas Biery" }, { "id": "cue-641", "start": 4403.843, "end": 4408.934, "text": "So moving away from the FIN Series structure and into, into a more proper code.", "speaker": "Jonas Biery" }, { "id": "cue-642", "start": 4409.528, "end": 4417.897, "text": "So we're not proposing beyond those administrative updates, the very technical updates from City Attorney, and adding the new BLT reserve.", "speaker": "Jonas Biery" }, { "id": "cue-643", "start": 4417.945, "end": 4442.168, "text": "We're not proposing any substantive changes to what's now PCC 590, formerly FIN 2.13, though certainly we would expect that as we've talked about financial stabilization, and looking at having a broader look at financial policy, this will be in that bucket of policies we also want to come back and look at in that project, although expect that the BLT piece may not need to be looked at then.", "speaker": "Jonas Biery" }, { "id": "cue-644", "start": 4442.826, "end": 4455.242, "text": "And then again, just a reminder that that will be— I think there's 3 documents for passage as part of the fall TAO package, and one of those will be an ordinance to adopt this policy.", "speaker": "Jonas Biery" }, { "id": "cue-645", "start": 4455.595, "end": 4458.129, "text": "And Ruth will talk about the numbers here in the next section.", "speaker": "Jonas Biery" }, { "id": "cue-646", "start": 4460.043, "end": 4475.217, "text": "The other thing I wanted to mention and preview, again with the numbers, numbers coming, by creating this BLT reserve, it kind of jumps in front of the existing capital set-aside policy.", "speaker": "Jonas Biery" }, { "id": "cue-647", "start": 4476.763, "end": 4485.093, "text": "For the last 4 or 5 years, we haven't actually used the capital set-aside policy, either because we didn't have money to put in it.", "speaker": "Jonas Biery" }, { "id": "cue-648", "start": 4485.141, "end": 4485.189, "text": "Yeah.", "speaker": "Jonas Biery" }, { "id": "cue-649", "start": 4485.973, "end": 4490.303, "text": "Or we made a decision that policy was waived and we didn't contribute.", "speaker": "Jonas Biery" }, { "id": "cue-650", "start": 4490.848, "end": 4497.199, "text": "But I do want to remind folks, we do still have the capital set-aside policy to put funding in there.", "speaker": "Jonas Biery" }, { "id": "cue-651", "start": 4497.295, "end": 4503.261, "text": "It's also— that language is also reflected in the FIN 2.03, soon to be PCC 590.", "speaker": "Jonas Biery" }, { "id": "cue-652", "start": 4503.854, "end": 4510.847, "text": "That policy says that half of the excess revenues, excess available one-time general fund revenues, go towards capital investment.", "speaker": "Jonas Biery" }, { "id": "cue-653", "start": 4510.895, "end": 4511.215, "text": "So that's not a new policy?", "speaker": "Jonas Biery" }, { "id": "cue-654", "start": 4512.676, "end": 4522.193, "text": "And so the effect of adding in the BLT is essentially the BLT reserve gets the first third of available resource, the capital set-aside gets the next third.", "speaker": "Jonas Biery" }, { "id": "cue-655", "start": 4522.851, "end": 4525.21, "text": "So 50% of what's remaining is how that's nested.", "speaker": "Jonas Biery" }, { "id": "cue-656", "start": 4525.274, "end": 4532.384, "text": "And then once the BLT reserve is filled, then we don't have to contribute back to that reserve and the capital set-aside goes back to the full 50%.", "speaker": "Jonas Biery" }, { "id": "cue-657", "start": 4533.845, "end": 4540.551, "text": "But do want to be clear about the fact that we expect to actually fund not to waive the capital set-aside via the fall TAO.", "speaker": "Jonas Biery" }, { "id": "cue-658", "start": 4541.241, "end": 4545.925, "text": "That's also consistent with recommendation and action from the Financial Stabilization and Recovery Plan.", "speaker": "Jonas Biery" }, { "id": "cue-659", "start": 4546.679, "end": 4549.839, "text": "And then I'll preview, and I think we'll get to the number here in a minute.", "speaker": "Jonas Biery" }, { "id": "cue-660", "start": 4549.887, "end": 4552.341, "text": "It's $1.5 million-ish, something like that.", "speaker": "Jonas Biery" }, { "id": "cue-661", "start": 4553.111, "end": 4555.309, "text": "Maybe $2 million.", "speaker": "Jonas Biery" }, { "id": "cue-662", "start": 4555.357, "end": 4556.512, "text": "I can't— $2.5 million.", "speaker": "Jonas Biery" }, { "id": "cue-663", "start": 4556.56, "end": 4556.864, "text": "Thank you.", "speaker": "Jonas Biery" }, { "id": "cue-664", "start": 4557.699, "end": 4578.369, "text": "So the suggestion is that that capital set— that be put in kind of capital set-aside functionally and be held to address capital expenses at the Moda Center, which we know will be required to support that city asset, even if a broader redevelopment opportunity isn't reached.", "speaker": "Jonas Biery" }, { "id": "cue-665", "start": 4578.417, "end": 4582.909, "text": "We still have an obligation to invest in that large asset, at least to the tune of $2.5 million.", "speaker": "Jonas Biery" }, { "id": "cue-666", "start": 4585.669, "end": 4586.427, "text": "And I think—.", "speaker": "Jonas Biery" }, { "id": "cue-667", "start": 4586.475, "end": 4588.234, "text": "Questions?", "speaker": "Unidentified speaker" }, { "id": "cue-668", "start": 4588.911, "end": 4589.669, "text": "Sure.", "speaker": "Unidentified speaker" }, { "id": "cue-669", "start": 4590.056, "end": 4606.018, "text": "Yeah, why don't we— we're going to go off script and we can maybe take a few questions just on that part before the next section we'll move into, some of the more technical pieces around what's actually in the TAO outside of these, sort of the balancing and decision point efforts.", "speaker": "Jonas Biery" }, { "id": "cue-670", "start": 4606.067, "end": 4615.907, "text": "But maybe we can pause and talk about either the reserve or the other technical net zero adjustments.", "speaker": "Jonas Biery" }, { "id": "cue-671", "start": 4616.374, "end": 4616.615, "text": "Okay.", "speaker": "Angelita Morillo" }, { "id": "cue-672", "start": 4617.355, "end": 4620.059, "text": "Colleagues, feel free to jump into the queue if you have any questions about this section.", "speaker": "Jamie Dunphy" }, { "id": "cue-673", "start": 4620.172, "end": 4621.749, "text": "Councilor Murillo, followed by Smith and Green.", "speaker": "Jamie Dunphy" }, { "id": "cue-674", "start": 4624.199, "end": 4626.278, "text": "Um, I think mine's for the next section, so I can wait.", "speaker": "Angelita Morillo" }, { "id": "cue-675", "start": 4626.342, "end": 4627.083, "text": "Sounds good.", "speaker": "Jamie Dunphy" }, { "id": "cue-676", "start": 4627.341, "end": 4627.534, "text": "Thank you.", "speaker": "Jamie Dunphy" }, { "id": "cue-677", "start": 4627.599, "end": 4628.131, "text": "Councilor Smith.", "speaker": "Jamie Dunphy" }, { "id": "cue-678", "start": 4628.55, "end": 4629.065, "text": "Thank you.", "speaker": "Loretta Smith" }, { "id": "cue-679", "start": 4629.194, "end": 4636.825, "text": "When do we plan to change the, um, the BLT policy, the FIN rules on that, and who has a vote on that?", "speaker": "Loretta Smith" }, { "id": "cue-680", "start": 4639.178, "end": 4643.32, "text": "Um, Councilor, are you asking when are we changing that, the policy I just described?", "speaker": "Jonas Biery" }, { "id": "cue-681", "start": 4643.384, "end": 4643.562, "text": "Yeah.", "speaker": "Jonas Biery" }, { "id": "cue-682", "start": 4643.852, "end": 4652.125, "text": "Yeah, so that will be, um, in— so what is in the, the package, uh, accompanying the fall TAO Will be an ordinance that includes that.", "speaker": "Jonas Biery" }, { "id": "cue-683", "start": 4652.67, "end": 4653.856, "text": "It currently does not exist.", "speaker": "Jonas Biery" }, { "id": "cue-684", "start": 4654.128, "end": 4658.022, "text": "No, but what I'm saying, are you going to change the policy and vote on the TAO at the same time?", "speaker": "Loretta Smith" }, { "id": "cue-685", "start": 4658.92, "end": 4669.993, "text": "Uh, so the suggestion would be— I haven't thought about the order, but essentially we would have an ordinance that would create the policy, and then the TAO itself would, would put some money back into that.", "speaker": "Jonas Biery" }, { "id": "cue-686", "start": 4670.314, "end": 4671.371, "text": "So we already did set some—.", "speaker": "Jonas Biery" }, { "id": "cue-687", "start": 4671.371, "end": 4672.926, "text": "That's really uncommon.", "speaker": "Loretta Smith" }, { "id": "cue-688", "start": 4673.118, "end": 4684.032, "text": "We would have no opportunity to speak about how we change the financial policies if you're going to do it in either concurrently or consecutively in the same day.", "speaker": "Loretta Smith" }, { "id": "cue-689", "start": 4684.433, "end": 4690.663, "text": "That, that seems like you need to change the policy and then write the TALP according to the new policy.", "speaker": "Loretta Smith" }, { "id": "cue-690", "start": 4691.081, "end": 4692.221, "text": "That just seems so—.", "speaker": "Loretta Smith" }, { "id": "cue-691", "start": 4693.248, "end": 4695.432, "text": "The opportunity exists to do that.", "speaker": "Jonas Biery" }, { "id": "cue-692", "start": 4695.512, "end": 4711.248, "text": "I'll just remind folks that we did in the adopted budget, we sort of set money aside and said, let's hold this in— I think it's actually in just general fund discretionary, um, to put into this fund, this new, uh, but we don't have a policy yet.", "speaker": "Jonas Biery" }, { "id": "cue-693", "start": 4711.408, "end": 4718.152, "text": "And so we could take that same approach in the, in the fall TAO and just sort of park it somewhere and come back later and create a policy.", "speaker": "Jonas Biery" }, { "id": "cue-694", "start": 4718.216, "end": 4725.714, "text": "What I think you need to do is you need to go to the Committee of the Whole and have it come through the committee because we don't have a— they have a finance jurisdiction.", "speaker": "Loretta Smith" }, { "id": "cue-695", "start": 4725.827, "end": 4725.875, "text": "Right.", "speaker": "Jonas Biery" }, { "id": "cue-696", "start": 4725.971, "end": 4732.444, "text": "So, so, Councilor, the next step in this process, this is a work session to preview all of this will be coming to Committee of the Whole next week.", "speaker": "Jonas Biery" }, { "id": "cue-697", "start": 4732.91, "end": 4733.086, "text": "Okay.", "speaker": "Jonas Biery" }, { "id": "cue-698", "start": 4733.568, "end": 4735.255, "text": "Together to have that dialogue.", "speaker": "Jonas Biery" }, { "id": "cue-699", "start": 4735.496, "end": 4740.284, "text": "And we're going to talk— are we talking about the TAO or are we talking about changing the FIN policy?", "speaker": "Loretta Smith" }, { "id": "cue-700", "start": 4741.039, "end": 4741.778, "text": "Both and either.", "speaker": "Jonas Biery" }, { "id": "cue-701", "start": 4742.228, "end": 4748.044, "text": "They will both have to pass through Finance and Governance Committee scheduled for next week.", "speaker": "Jonas Biery" }, { "id": "cue-702", "start": 4748.108, "end": 4748.204, "text": "Okay.", "speaker": "Raymond C. Lee" }, { "id": "cue-703", "start": 4748.252, "end": 4759.874, "text": "That's what I was like, you have not given us a chance to really look at this and to see if this is the right policy in terms of us going forward and, and what the forecast looks like.", "speaker": "Loretta Smith" }, { "id": "cue-704", "start": 4759.939, "end": 4762.187, "text": "So it's some different things that you have to look at.", "speaker": "Loretta Smith" }, { "id": "cue-705", "start": 4762.348, "end": 4763.189, "text": "Yeah, no, appreciate that.", "speaker": "Jonas Biery" }, { "id": "cue-706", "start": 4763.254, "end": 4766.34, "text": "This is, this is just intended to be a preview of what is coming to committee.", "speaker": "Jonas Biery" }, { "id": "cue-707", "start": 4766.485, "end": 4767.387, "text": "Okay, thank you.", "speaker": "Loretta Smith" }, { "id": "cue-708", "start": 4767.452, "end": 4769.384, "text": "You didn't tell that.", "speaker": "Loretta Smith" }, { "id": "cue-709", "start": 4770.834, "end": 4771.929, "text": "Thank you much, Councilor Smith.", "speaker": "Jamie Dunphy" }, { "id": "cue-710", "start": 4772.186, "end": 4772.653, "text": "Councilor Green.", "speaker": "Jamie Dunphy" }, { "id": "cue-711", "start": 4775.182, "end": 4776.603, "text": "Uh, thank, thank you, Mr. Beery.", "speaker": "Mitch Green" }, { "id": "cue-712", "start": 4776.862, "end": 4780.318, "text": "Um, fully support sort of formalizing this.", "speaker": "Mitch Green" }, { "id": "cue-713", "start": 4780.593, "end": 4783.549, "text": "We've talked about it, I think, for a while in a couple different venues.", "speaker": "Mitch Green" }, { "id": "cue-714", "start": 4784.37, "end": 4794.49, "text": "I just want to make sure I clarify, and for everyone reaching along, because I think you might come away with the wrong impression if you just glance at the bullet points.", "speaker": "Mitch Green" }, { "id": "cue-715", "start": 4794.49, "end": 4797.68, "text": "You're not saying we're going to do $10 million a year.", "speaker": "Mitch Green" }, { "id": "cue-716", "start": 4797.68, "end": 4802.34, "text": "You're saying it's a third of whatever we have that's available.", "speaker": "Mitch Green" }, { "id": "cue-717", "start": 4802.71, "end": 4807.21, "text": "So if we have a lean year, if it's $1 million, it'd be $300,000 of that, right?", "speaker": "Mitch Green" }, { "id": "cue-718", "start": 4807.21, "end": 4809.29, "text": "Yeah, Councilor, that's correct.", "speaker": "Jonas Biery" }, { "id": "cue-719", "start": 4809.29, "end": 4811.97, "text": "It's just drafted to be whatever's available.", "speaker": "Jonas Biery" }, { "id": "cue-720", "start": 4811.97, "end": 4813.69, "text": "It takes the first third of whatever's available.", "speaker": "Jonas Biery" }, { "id": "cue-721", "start": 4813.69, "end": 4818.131, "text": "If there's zero available, There's zero that goes into the fund per this policy.", "speaker": "Jonas Biery" }, { "id": "cue-722", "start": 4818.196, "end": 4822.49, "text": "Council could always choose to do something otherwise, you know, above policy.", "speaker": "Jonas Biery" }, { "id": "cue-723", "start": 4823.307, "end": 4833.113, "text": "If it's $30 million that's available, then $10 million would go into the fund, obviously until the fund is fully funded, and then we would only transfer what we need to get to that 15% target.", "speaker": "Jonas Biery" }, { "id": "cue-724", "start": 4833.481, "end": 4841.348, "text": "I just wanted to reinforce that point because it's sort of automatically scaled by where we're at in the business cycle, where we're at in the volatility.", "speaker": "Mitch Green" }, { "id": "cue-725", "start": 4841.412, "end": 4842.005, "text": "Yeah, that's correct.", "speaker": "Jonas Biery" }, { "id": "cue-726", "start": 4842.053, "end": 4856.122, "text": "And it might be worth noting too with the amount that was sort of set aside in the adopted budget and with this proposed transfer, if council adopts all of that, we're still only at less than 3%.", "speaker": "Jonas Biery" }, { "id": "cue-727", "start": 4857.07, "end": 4864.427, "text": "And so while it's good that we're putting money in there, it's still quite a ways off from the kind of prudent 15% target.", "speaker": "Jonas Biery" }, { "id": "cue-728", "start": 4865.423, "end": 4865.68, "text": "Thank you.", "speaker": "Dan Ryan" }, { "id": "cue-729", "start": 4866.484, "end": 4867.19, "text": "Thank you, Councilor Green.", "speaker": "Jamie Dunphy" }, { "id": "cue-730", "start": 4867.431, "end": 4868.138, "text": "Councilor Pirtle-Guiney.", "speaker": "Jamie Dunphy" }, { "id": "cue-731", "start": 4869.295, "end": 4870.419, "text": "Thank you, Council President.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-732", "start": 4871.8, "end": 4877.672, "text": "First piece, going back a section, I just want to make sure we will have details when we hear this in Committee of the Whole.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-733", "start": 4877.944, "end": 4884.907, "text": "You mentioned that on the net zero and non-general fund decisions, there are a number of parks decisions that draw on the parks levy.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-734", "start": 4885.726, "end": 4909.231, "text": "I will want to know when we get the more detailed presentation what that does to the future sustainability of the parks levy and the ability to ensure that at the end of the parks levy, we are still spending at a sustainable level, and we haven't drawn down in front years so much that we will have boxed ourselves into asking Portlanders for an increase again at the end.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-735", "start": 4911.083, "end": 4930.653, "text": "Moving back forward to the most recent slides, you said that the recommendation we should expect this year is that the funding for— the funding in our financial policy that goes to infrastructure maintenance, the recommendation will be that that go to the Moda Center.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-736", "start": 4931.905, "end": 4949.619, "text": "Will that— is that funding that you are foreseeing as being available to help offset a city cost for a full remodel there, or is that funding that you see as being available for ongoing upkeep and maintenance of the facility?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-737", "start": 4950.277, "end": 4957.187, "text": "Those are very different things, and if we're talking about ongoing upkeep and maintenance, which we've previously funded through other sources.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-738", "start": 4958.77, "end": 4967.799, "text": "I at least would think about that recommendation very differently than money that you are saying, hey, we know we're going to have a large project coming soon.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-739", "start": 4967.863, "end": 4969.731, "text": "We've been talking about it for quite a while.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-740", "start": 4970.536, "end": 4973.836, "text": "This is the first part of trying to find the dollars to go toward that.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-741", "start": 4974.078, "end": 4975.902, "text": "Yeah, it's a good question, Councilor.", "speaker": "Jonas Biery" }, { "id": "cue-742", "start": 4975.999, "end": 4986.435, "text": "I think the intent is that, A, it's, it's that's sort of available to help contribute to a more immediate large redevelopment plan if that goes forward.", "speaker": "Jonas Biery" }, { "id": "cue-743", "start": 4986.483, "end": 4989.015, "text": "And I think we'll learn more about that soon.", "speaker": "Jonas Biery" }, { "id": "cue-744", "start": 4989.351, "end": 4998.068, "text": "And recognizing if that doesn't go forward, we still will have a need to do some major investment outside of sort of the normal upkeep and maintenance that—.", "speaker": "Jonas Biery" }, { "id": "cue-745", "start": 4999.046, "end": 4999.431, "text": "If that—.", "speaker": "Jonas Biery" }, { "id": "cue-746", "start": 4999.703, "end": 5012.823, "text": "My understanding is if that building is to retain— remain viable, we'll have to come up with sort of an alternative plan that will still require significant capital investment and likely city capital investment.", "speaker": "Jonas Biery" }, { "id": "cue-747", "start": 5012.888, "end": 5027.016, "text": "And so it's really about kind of keeping optionality open around that, recognizing that that's potentially one of the larger obligations that the city knows we have coming on the— capital obligations that we have coming on the near— in our near term.", "speaker": "Jonas Biery" }, { "id": "cue-748", "start": 5027.066, "end": 5027.874, "text": "Thank you for that clarification.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-749", "start": 5029.48, "end": 5029.669, "text": "Thank you.", "speaker": "Jamie Dunphy" }, { "id": "cue-750", "start": 5029.72, "end": 5030.528, "text": "Councilor Pirtle-Guiney.", "speaker": "Jamie Dunphy" }, { "id": "cue-751", "start": 5031.499, "end": 5033.217, "text": "I think we can move to the next section.", "speaker": "Jamie Dunphy" }, { "id": "cue-752", "start": 5034.197, "end": 5036.413, "text": "Um, okay, I think we're gonna take a short break.", "speaker": "Unidentified speaker" }, { "id": "cue-753", "start": 5036.605, "end": 5037.424, "text": "Oh, is this time for a break?", "speaker": "Jamie Dunphy" }, { "id": "cue-754", "start": 5037.505, "end": 5038.645, "text": "Let's take a break if you want one.", "speaker": "Unidentified speaker" }, { "id": "cue-755", "start": 5038.773, "end": 5039.287, "text": "That's great.", "speaker": "Jamie Dunphy" }, { "id": "cue-756", "start": 5039.415, "end": 5041.743, "text": "Uh, folks, let's have everybody back here at 3:30.", "speaker": "Jamie Dunphy" }, { "id": "cue-757", "start": 5042.466, "end": 5043.221, "text": "Thank you.", "speaker": "Jamie Dunphy" }, { "id": "cue-758", "start": 6020.231, "end": 6025.959, "text": "You know, all right, welcome back, folks.", "speaker": "Jamie Dunphy" }, { "id": "cue-759", "start": 6026.621, "end": 6031.293, "text": "Jonas, Ruth, take us on through the second half of chunk number 2.", "speaker": "Jamie Dunphy" }, { "id": "cue-760", "start": 6031.697, "end": 6046.451, "text": "All right, so the next, uh, section of material we're going to go through is how the fall TAO as proposed, as filed for committee next week balances the general fund.", "speaker": "Unidentified speaker" }, { "id": "cue-761", "start": 6046.611, "end": 6053.806, "text": "So we talked about the fund balance change earlier, and this sort of picks up from there and then says, now what do we do, right?", "speaker": "Unidentified speaker" }, { "id": "cue-762", "start": 6054.238, "end": 6064.189, "text": "So the first line— well, this slide is kind of an overview of all of the different changes, and I'm actually going to walk through them one by one on the subsequent slides.", "speaker": "Unidentified speaker" }, { "id": "cue-763", "start": 6065.15, "end": 6066.833, "text": "So this is the first piece.", "speaker": "Unidentified speaker" }, { "id": "cue-764", "start": 6066.897, "end": 6084.411, "text": "That is what we showed, what I showed at the beginning with the actual ending fund balance and then the budgeted beginning fund balance, which once you subtract that, you end up with about $14.7 million as kind of the starting fund balance.", "speaker": "Unidentified speaker" }, { "id": "cue-765", "start": 6085.69, "end": 6088.206, "text": "And so that's kind of what— that's where we start.", "speaker": "Unidentified speaker" }, { "id": "cue-766", "start": 6088.367, "end": 6093.045, "text": "And there's a little tracker at the bottom that shows how we get from there down to zero.", "speaker": "Unidentified speaker" }, { "id": "cue-767", "start": 6093.45, "end": 6097.924, "text": "And again, that's just because we're filing a balanced A balanced budget.", "speaker": "Unidentified speaker" }, { "id": "cue-768", "start": 6098.037, "end": 6101.638, "text": "And so there has to— it has to go somewhere in the filing.", "speaker": "Unidentified speaker" }, { "id": "cue-769", "start": 6103.63, "end": 6108.594, "text": "So this slide shows all of the— they're called required adjustments.", "speaker": "Unidentified speaker" }, { "id": "cue-770", "start": 6108.981, "end": 6112.994, "text": "They're adjustments that are governed by existing policies or legal requirements.", "speaker": "Unidentified speaker" }, { "id": "cue-771", "start": 6114.15, "end": 6122.903, "text": "And some of these we talked about last fall, but we filed with sort of fulfilling all of those existing policies and legal requirements.", "speaker": "Unidentified speaker" }, { "id": "cue-772", "start": 6122.952, "end": 6123.065, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-773", "start": 6123.166, "end": 6123.246, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-774", "start": 6123.745, "end": 6137.153, "text": "The first one is the way previous council set up a funding mechanism for short-term rental revenue to go to the Housing Investment Fund.", "speaker": "Unidentified speaker" }, { "id": "cue-775", "start": 6137.201, "end": 6143.03, "text": "It specifically directs us to send it in the fall TAO, the amount that came in above the forecast.", "speaker": "Unidentified speaker" }, { "id": "cue-776", "start": 6143.484, "end": 6145.657, "text": "And so this year that number is $2.1 million.", "speaker": "Unidentified speaker" }, { "id": "cue-777", "start": 6146.014, "end": 6147.976, "text": "So that moves over to the Housing Investment Fund.", "speaker": "Unidentified speaker" }, { "id": "cue-778", "start": 6148.74, "end": 6155.893, "text": "There's $40,000 of labor contract pieces that are required.", "speaker": "Unidentified speaker" }, { "id": "cue-779", "start": 6157, "end": 6160.267, "text": "The next one is a clean air construction policy carryover.", "speaker": "Unidentified speaker" }, { "id": "cue-780", "start": 6160.348, "end": 6174.158, "text": "That's essentially a sort of required carryover amount of anything they didn't spend is sort of— there's a policy to carry that forward, and that amount is $387,000 this year.", "speaker": "Unidentified speaker" }, { "id": "cue-781", "start": 6174.908, "end": 6191.655, "text": "And then there's a $700,000 settlement amount for PFFA for sort of an amount from the fire health and wellness funds that were sort of incorrectly removed from that fund in the proposed budget.", "speaker": "Unidentified speaker" }, { "id": "cue-782", "start": 6191.783, "end": 6194.384, "text": "And so this would backfill that amount.", "speaker": "Unidentified speaker" }, { "id": "cue-783", "start": 6195.701, "end": 6199.747, "text": "And so once you make all of those adjustments, those total $3.2 million.", "speaker": "Unidentified speaker" }, { "id": "cue-784", "start": 6200.118, "end": 6203.007, "text": "You're left with $11.5 million.", "speaker": "Unidentified speaker" }, { "id": "cue-785", "start": 6204.798, "end": 6209.495, "text": "The next page is sort of true technical corrections in that they were like errors in the budget.", "speaker": "Unidentified speaker" }, { "id": "cue-786", "start": 6211.01, "end": 6218.649, "text": "And so there's 2 of them, and they actually increase the fund balance together by half a million dollars.", "speaker": "Unidentified speaker" }, { "id": "cue-787", "start": 6221.11, "end": 6223.357, "text": "And so that gets you to $12 million.", "speaker": "Unidentified speaker" }, { "id": "cue-788", "start": 6224.828, "end": 6227.446, "text": "After that, we get into encumbrance carryovers.", "speaker": "Unidentified speaker" }, { "id": "cue-789", "start": 6227.494, "end": 6227.559, "text": "Yes.", "speaker": "Jamie Dunphy" }, { "id": "cue-790", "start": 6228.407, "end": 6244.934, "text": "As a reminder, Jonas mentioned this at the start of the presentation, but we've had guidance about what is— what the criteria are for encumbrance carryovers, and we sort of tightened those and reiterated them for bureaus this year as we went into the fall TAO process.", "speaker": "Unidentified speaker" }, { "id": "cue-791", "start": 6246.216, "end": 6248.749, "text": "So these are for the general fund only.", "speaker": "Unidentified speaker" }, { "id": "cue-792", "start": 6248.877, "end": 6254.439, "text": "So other funds also do carryovers in their own way, but this is for general fund encumbrance carryovers.", "speaker": "Unidentified speaker" }, { "id": "cue-793", "start": 6255.936, "end": 6259.276, "text": "The bureau has to have had actual underspending to cover it.", "speaker": "Unidentified speaker" }, { "id": "cue-794", "start": 6261.002, "end": 6266.463, "text": "They are— it says that they're supposed to be unable to absorb the expense in the current fiscal year's budget.", "speaker": "Unidentified speaker" }, { "id": "cue-795", "start": 6267.663, "end": 6270.873, "text": "So it's not just we had this underspending, we want it back.", "speaker": "Unidentified speaker" }, { "id": "cue-796", "start": 6272.24, "end": 6276.301, "text": "The request is supposed to be one-time in nature, so it shouldn't be for ongoing programming.", "speaker": "Unidentified speaker" }, { "id": "cue-797", "start": 6276.415, "end": 6279.794, "text": "It should be for a one-time thing that didn't get completed in the prior fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-798", "start": 6279.843, "end": 6279.989, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-799", "start": 6280.724, "end": 6283.791, "text": "And then that the request is critical for operations.", "speaker": "Unidentified speaker" }, { "id": "cue-800", "start": 6284.472, "end": 6295.088, "text": "And so through the process of sort of reiterating those, we ended up with many fewer encumbrance carryover requests this year than we have in previous years.", "speaker": "Unidentified speaker" }, { "id": "cue-801", "start": 6295.217, "end": 6298.718, "text": "So I think that was positive overall in terms of the process.", "speaker": "Unidentified speaker" }, { "id": "cue-802", "start": 6301.283, "end": 6303.118, "text": "This slide gives a little bit more detail.", "speaker": "Unidentified speaker" }, { "id": "cue-803", "start": 6303.214, "end": 6309.057, "text": "And again, we have full details for all of the decision packages in Exhibit 5.", "speaker": "Unidentified speaker" }, { "id": "cue-804", "start": 6309.154, "end": 6309.299, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-805", "start": 6309.913, "end": 6319.071, "text": "We also collected information preemptively that council was interested in last year when we went through this encumbrance carryover process.", "speaker": "Unidentified speaker" }, { "id": "cue-806", "start": 6319.152, "end": 6335.797, "text": "So bureaus have submitted— we have a complete spreadsheet with all of the purchase orders that each of these dollars is connected to, what it's for, why it was underspent, and what would happen if sort of this funding wasn't allocated.", "speaker": "Unidentified speaker" }, { "id": "cue-807", "start": 6337.93, "end": 6342.02, "text": "And happy to answer additional questions on that.", "speaker": "Unidentified speaker" }, { "id": "cue-808", "start": 6342.757, "end": 6352.428, "text": "But this is— that's the breakdown by bureau, and then the total amount was— is $4.6 million.", "speaker": "Unidentified speaker" }, { "id": "cue-809", "start": 6353.021, "end": 6361.249, "text": "So if those are funded, that sort of comes out of the ending fund balance because that underspending fell to balance in the general fund and became part of that $14.7 number.", "speaker": "Unidentified speaker" }, { "id": "cue-810", "start": 6361.313, "end": 6361.457, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-811", "start": 6362.804, "end": 6367.711, "text": "So that leaves us with $7.4 million.", "speaker": "Unidentified speaker" }, { "id": "cue-812", "start": 6369.123, "end": 6380.861, "text": "That $7.4 million is the basis on which we calculated the amounts per the BLT policy and capital set-aside policy that Jonas talked about a little bit ago.", "speaker": "Unidentified speaker" }, { "id": "cue-813", "start": 6381.262, "end": 6388.719, "text": "So the way those, those policies read, that's— this is kind of the point in the process where that gets applied.", "speaker": "Unidentified speaker" }, { "id": "cue-814", "start": 6390.13, "end": 6402.345, "text": "And so the way that math works out is a third of that total goes to BLT, that's $2.5 million, and then 50% of the remainder goes to capital set-aside.", "speaker": "Unidentified speaker" }, { "id": "cue-815", "start": 6402.393, "end": 6405.294, "text": "The other 50% stays sort of unallocated.", "speaker": "Unidentified speaker" }, { "id": "cue-816", "start": 6405.935, "end": 6409.141, "text": "50% Of 2/3 is 1/3, so they all get 1/3.", "speaker": "Unidentified speaker" }, { "id": "cue-817", "start": 6409.767, "end": 6422.426, "text": "And so it's $2.5 million to each of those buckets, $2.5 million to BLT reserve, $2.5 million to cap set-aside, and then the remaining $2.5 million is sort of available to be allocated.", "speaker": "Unidentified speaker" }, { "id": "cue-818", "start": 6425.465, "end": 6431.238, "text": "Then we move to kind of more discretionary decision points.", "speaker": "Unidentified speaker" }, { "id": "cue-819", "start": 6431.367, "end": 6438.398, "text": "This list is also much smaller than it has been in previous years, and most of them are a little, like, somewhat technical.", "speaker": "Unidentified speaker" }, { "id": "cue-820", "start": 6438.463, "end": 6440.475, "text": "I already talked about the core services realignment.", "speaker": "Unidentified speaker" }, { "id": "cue-821", "start": 6440.686, "end": 6440.992, "text": "Piece.", "speaker": "Unidentified speaker" }, { "id": "cue-822", "start": 6441.105, "end": 6444.835, "text": "That's a $342,000 hit to the general fund.", "speaker": "Unidentified speaker" }, { "id": "cue-823", "start": 6444.964, "end": 6450.196, "text": "Again, most of that is from changing the way things are being paid for, not by adding things.", "speaker": "Unidentified speaker" }, { "id": "cue-824", "start": 6451.71, "end": 6454.377, "text": "The Vision Zero amount is not a new request.", "speaker": "Unidentified speaker" }, { "id": "cue-825", "start": 6454.538, "end": 6457.334, "text": "It's also changing the way we're paying for something.", "speaker": "Unidentified speaker" }, { "id": "cue-826", "start": 6457.43, "end": 6475.826, "text": "Essentially, it was raised that we were paying for this through the public works bureaus and that it was supposed to be a citywide allocation, and that sort of to legally— to remain compliant with Anderson and legal guidance around that, we should move it to general fund overhead.", "speaker": "Unidentified speaker" }, { "id": "cue-827", "start": 6477.181, "end": 6486.265, "text": "Right, for right now, for the current fiscal year, we're putting it into general fund discretionary because we don't rerun the overhead numbers in the middle of the fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-828", "start": 6488.04, "end": 6489.594, "text": "So that's what that is.", "speaker": "Unidentified speaker" }, { "id": "cue-829", "start": 6489.643, "end": 6491.017, "text": "It's not a new thing.", "speaker": "Unidentified speaker" }, { "id": "cue-830", "start": 6491.132, "end": 6492.146, "text": "It's just changing how we pay for it.", "speaker": "Unidentified speaker" }, { "id": "cue-831", "start": 6492.195, "end": 6492.375, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-832", "start": 6492.782, "end": 6508.873, "text": "And then the auditor's compensation set-aside package, that $240,000 is essentially an amount that was intended to be included in the budget, but because we were changing how we did compensation set-aside, there was some confusion around that process.", "speaker": "Unidentified speaker" }, { "id": "cue-833", "start": 6510.188, "end": 6519.741, "text": "They weren't the only bureau that had that issue, but in terms of just getting it correct in the proposed, and so okay.", "speaker": "Unidentified speaker" }, { "id": "cue-834", "start": 6519.822, "end": 6525.791, "text": "So, but the fall TAO as filed includes that amount going to the auditor's office.", "speaker": "Unidentified speaker" }, { "id": "cue-835", "start": 6528.41, "end": 6542.959, "text": "So all of those decisions, if council were to fund all of those, that would be about $800,000 of the remaining $2.5 million, and then for rounding, $2.4 million.", "speaker": "Unidentified speaker" }, { "id": "cue-836", "start": 6543.3, "end": 6556.873, "text": "And then the— what's left then is $1.6 million, and that is the amount that's kind of— once you run through all these different things, what you're left with.", "speaker": "Unidentified speaker" }, { "id": "cue-837", "start": 6558.82, "end": 6569.512, "text": "The fall TAO as filed recommends placing that into unrestricted general fund contingency this year, and I will talk on the next slide about why that is.", "speaker": "Unidentified speaker" }, { "id": "cue-838", "start": 6571.386, "end": 6578.562, "text": "As a reminder, we have less than normal contingency at this point of the fiscal year because of the July supplemental.", "speaker": "Unidentified speaker" }, { "id": "cue-839", "start": 6580.19, "end": 6594.103, "text": "And so this would avoid kind of putting all that pressure on the spring and kind of preload a little bit of that amount that was discussed for the spring to replenish those contingencies.", "speaker": "Unidentified speaker" }, { "id": "cue-840", "start": 6597.232, "end": 6598.498, "text": "A few things on this slide.", "speaker": "Unidentified speaker" }, { "id": "cue-841", "start": 6599.447, "end": 6608.732, "text": "About kind of remaining current year uncertainties other than all of the regular uncertainties about things that none of us can control or know at this point in the fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-842", "start": 6610.129, "end": 6611.88, "text": "There are some sort of known unknowns.", "speaker": "Unidentified speaker" }, { "id": "cue-843", "start": 6613.021, "end": 6622.273, "text": "The first is around council operations related to potential council transition costs and then Open Signal needs for the Open Signal budget.", "speaker": "Unidentified speaker" }, { "id": "cue-844", "start": 6623.542, "end": 6633.273, "text": "Parks also did not get the compensation set-aside amount included in their current year budget, but we've recommended waiting until the spring to fill that amount.", "speaker": "Unidentified speaker" }, { "id": "cue-845", "start": 6634.558, "end": 6645.894, "text": "There are some early projections for the Police Bureau on their spending, although it is very early in the fiscal year, so I want to emphasize that we don't have a lot of certainty around that right now.", "speaker": "Unidentified speaker" }, { "id": "cue-846", "start": 6646.681, "end": 6652.044, "text": "And then there's other dynamics happening that could impact personnel costs citywide.", "speaker": "Unidentified speaker" }, { "id": "cue-847", "start": 6653.542, "end": 6655.246, "text": "That's all on the expense side.", "speaker": "Unidentified speaker" }, { "id": "cue-848", "start": 6655.31, "end": 6664.595, "text": "On the revenue side, there's a little bit of continued BLT volatility around the impacts of HR 1 and how that may play out in the current fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-849", "start": 6667.92, "end": 6667.936, "text": "I—.", "speaker": "Raymond C. Lee" }, { "id": "cue-850", "start": 6668.129, "end": 6669.885, "text": "Oh, a couple more things.", "speaker": "Unidentified speaker" }, { "id": "cue-851", "start": 6670.095, "end": 6677.061, "text": "I think this is the last thing on fall TAO, is just we wanted to highlight some of the grant adjustments.", "speaker": "Unidentified speaker" }, { "id": "cue-852", "start": 6677.78, "end": 6690.06, "text": "There are Both carryovers of multi-year grant awards, so amounts that were appropriated last year but for a multi-year time frame and have to be reappropriated this year.", "speaker": "Unidentified speaker" }, { "id": "cue-853", "start": 6690.813, "end": 6697.847, "text": "And then there's also appropriations of new grants, and that's that right-hand column there of $10.5 million.", "speaker": "Unidentified speaker" }, { "id": "cue-854", "start": 6698.36, "end": 6719.64, "text": "We do have backup also for all of this, so we can share a spreadsheet that details all of the grants, whether they're new or have So I think we can do any questions at this point on fall TAO before we turn to budget process and calendar.", "speaker": "Unidentified speaker" }, { "id": "cue-855", "start": 6721.841, "end": 6722.278, "text": "Sounds good.", "speaker": "Jamie Dunphy" }, { "id": "cue-856", "start": 6722.326, "end": 6723.993, "text": "Councilor Murillo and then Councilor Smith.", "speaker": "Jamie Dunphy" }, { "id": "cue-857", "start": 6726.54, "end": 6727.205, "text": "Um, thank you.", "speaker": "Angelita Morillo" }, { "id": "cue-858", "start": 6728.016, "end": 6731.472, "text": "Uh, thanks for bringing up the July supplemental.", "speaker": "Angelita Morillo" }, { "id": "cue-859", "start": 6731.602, "end": 6733.662, "text": "I had one question on that part.", "speaker": "Angelita Morillo" }, { "id": "cue-860", "start": 6735.606, "end": 6748.32, "text": "So when anticipated funds from underspending, interest accruals, and other resources develop in the spring TAO, the funds will be used to restore the general fund contingency.", "speaker": "Angelita Morillo" }, { "id": "cue-861", "start": 6749.078, "end": 6751.611, "text": "And I think it was $9.96 million that I saw.", "speaker": "Angelita Morillo" }, { "id": "cue-862", "start": 6752.95, "end": 6756.43, "text": "Was— and this isn't a trick question, I'm just genuinely asking sort of the rationale for this.", "speaker": "Angelita Morillo" }, { "id": "cue-863", "start": 6756.543, "end": 6763.667, "text": "Was there any consideration of using the $5 million you currently propose to allocate to the BLT stabilization reserve and capital set aside?", "speaker": "Angelita Morillo" }, { "id": "cue-864", "start": 6765.046, "end": 6766.992, "text": "To buy down that future liability now?", "speaker": "Angelita Morillo" }, { "id": "cue-865", "start": 6769.443, "end": 6773.033, "text": "Because it feels like we don't have any answers for how that's going to come back in the spring.", "speaker": "Angelita Morillo" }, { "id": "cue-866", "start": 6775.142, "end": 6781.541, "text": "Yeah, Councilor, I'll attempt to answer the question, and I think there's kind of a twofold answer.", "speaker": "Jonas Biery" }, { "id": "cue-867", "start": 6782.558, "end": 6808.317, "text": "One is, at least as if we assume that the BLT policy passes as proposed, The way those— between the new BLT stabilization reserve policy element and the existing capital set-aside would, if we are following those policies, it would not be, frankly, I think, an administrative decision to fund those otherwise.", "speaker": "Jonas Biery" }, { "id": "cue-868", "start": 6808.414, "end": 6810.212, "text": "That would be something that council would have to decide.", "speaker": "Jonas Biery" }, { "id": "cue-869", "start": 6810.277, "end": 6816.589, "text": "So just calling out that fact that we're sort of just trying to follow the policies or assumed policies.", "speaker": "Jonas Biery" }, { "id": "cue-870", "start": 6819.419, "end": 6835.411, "text": "And the second piece to the answer is I agree with you for sure that we are continuing to run really lean with regard to contingency, recognizing those future expectations.", "speaker": "Jonas Biery" }, { "id": "cue-871", "start": 6836.92, "end": 6850.249, "text": "So there is a path that council could choose to differently apply policies or waive policies and put more money to sort of fill that future contingency challenge.", "speaker": "Jonas Biery" }, { "id": "cue-872", "start": 6851.292, "end": 6863.008, "text": "I think, you know, our perspective was that we were always going to be in a place where we were going to need to carefully manage underspending to fill that gap in the spring.", "speaker": "Jonas Biery" }, { "id": "cue-873", "start": 6863.686, "end": 6865.415, "text": "We will continue to need to do that.", "speaker": "Jonas Biery" }, { "id": "cue-874", "start": 6865.787, "end": 6879.733, "text": "If we're able to put this $1.6 million It gives us a greater chance of success, but there's certainly other pathways to do that that would just have different trade-offs, i.e., you know, not shoring up kind of other reserves, et cetera.", "speaker": "Jonas Biery" }, { "id": "cue-875", "start": 6881.18, "end": 6882.658, "text": "Gotcha.", "speaker": "Angelita Morillo" }, { "id": "cue-876", "start": 6882.883, "end": 6890.21, "text": "So to summarize what you've said in plain language, maybe let me reiterate it and see if I fully understand it.", "speaker": "Angelita Morillo" }, { "id": "cue-877", "start": 6890.839, "end": 6896.085, "text": "We borrowed general fund contingency for this budget ordinance to the tune of $10 million.", "speaker": "Angelita Morillo" }, { "id": "cue-878", "start": 6896.69, "end": 6901.772, "text": "Roughly, and the ordinance requires us to repay that from whatever might be available in the spring.", "speaker": "Angelita Morillo" }, { "id": "cue-879", "start": 6902.514, "end": 6909.905, "text": "But today we have $5 million that we could put into the general fund contingency to relieve pressure on the general fund bureaus to underspend.", "speaker": "Angelita Morillo" }, { "id": "cue-880", "start": 6910.676, "end": 6917.392, "text": "So wouldn't that be a better use of that money to pay down those current obligations before we set up reserves for new ones?", "speaker": "Angelita Morillo" }, { "id": "cue-881", "start": 6919.843, "end": 6922.7, "text": "Yeah, I think it's— they're different.", "speaker": "Jonas Biery" }, { "id": "cue-882", "start": 6924.639, "end": 6926.771, "text": "Different flavors of similar risk, right?", "speaker": "Jonas Biery" }, { "id": "cue-883", "start": 6926.836, "end": 6943.462, "text": "We're sort of taking a $5 million amount that we expect we need to sort of hold for safety or other future needs, which by the way, we could take back in the spring as well if we needed, and continuing to sort of build the rigor around the underspending.", "speaker": "Jonas Biery" }, { "id": "cue-884", "start": 6944.995, "end": 6955.769, "text": "And again, just reiterate, I think, The perspective that I would take is I don't think it's the administration's role to suggest not following policy.", "speaker": "Jonas Biery" }, { "id": "cue-885", "start": 6957.245, "end": 6966.727, "text": "So again, I just flagged that would be something if council wanted to consider, for example, waiving the capital set-aside policy as we have in the recent past.", "speaker": "Jonas Biery" }, { "id": "cue-886", "start": 6967.128, "end": 6974.379, "text": "If council wanted to consider not funding the BLT reserve, that would be something that we'd look to y'all to propose.", "speaker": "Jonas Biery" }, { "id": "cue-887", "start": 6976.335, "end": 6976.656, "text": "Gotcha.", "speaker": "Angelita Morillo" }, { "id": "cue-888", "start": 6976.96, "end": 6983.212, "text": "And when you're talking about the policy that you don't want to waive, or you're talking about 2.03, right?", "speaker": "Angelita Morillo" }, { "id": "cue-889", "start": 6983.693, "end": 6984.526, "text": "Uh, correct.", "speaker": "Jonas Biery" }, { "id": "cue-890", "start": 6984.591, "end": 6988.518, "text": "So the, the capital set-aside policy is embedded within 2.03.", "speaker": "Jonas Biery" }, { "id": "cue-891", "start": 6988.598, "end": 6990.81, "text": "It might be another subsection, I can't remember exactly.", "speaker": "Jonas Biery" }, { "id": "cue-892", "start": 6991.467, "end": 6993.439, "text": "Um, uh, we can look that up for you.", "speaker": "Jonas Biery" }, { "id": "cue-893", "start": 6994.112, "end": 6997.783, "text": "Um, that references, um, that sort of that first 50%.", "speaker": "Jonas Biery" }, { "id": "cue-894", "start": 6997.896, "end": 7002.881, "text": "Uh, so that is a policy that would be, um, technically would need to be waived.", "speaker": "Jonas Biery" }, { "id": "cue-895", "start": 7003.49, "end": 7014.793, "text": "Uh, and then the BLT policy is the, the new proposed kind of insert into that that we discussed earlier, subject to council adoption of that ordinance and policy.", "speaker": "Jonas Biery" }, { "id": "cue-896", "start": 7016.127, "end": 7029.091, "text": "Yeah, because for— so my understanding is that Financial Policy 2.03 is supposed to be 50% of general fund discretionary money goes towards infrastructure and maintenance replacement.", "speaker": "Angelita Morillo" }, { "id": "cue-897", "start": 7029.685, "end": 7046.812, "text": "But so I'm not suggesting that we waive that policy, but I am asking if we should address current liabilities before we start following new policies or policies that we haven't followed in a few years, because to my knowledge, I don't recall us using that policy last year.", "speaker": "Angelita Morillo" }, { "id": "cue-898", "start": 7047.647, "end": 7052.124, "text": "And I don't think the city has followed 2.03 for the past 6 years.", "speaker": "Angelita Morillo" }, { "id": "cue-899", "start": 7053.264, "end": 7060.549, "text": "And, you know, maybe we should because we have a lot of parks and roads that have dire need for maintenance upgrades.", "speaker": "Angelita Morillo" }, { "id": "cue-900", "start": 7062.91, "end": 7069.75, "text": "But I suspect that these dollars are going to be set aside for a different project than the existing projects that we have now.", "speaker": "Angelita Morillo" }, { "id": "cue-901", "start": 7070.284, "end": 7070.607, "text": "Yeah, yeah.", "speaker": "Jonas Biery" }, { "id": "cue-902", "start": 7070.753, "end": 7078.065, "text": "And Councilor, you're correct that we have, we have not transferred funds into that capital set aside for the last many years.", "speaker": "Jonas Biery" }, { "id": "cue-903", "start": 7078.178, "end": 7085.083, "text": "I know it was at least 4 or 5, maybe it's even 6, partially because like last year, I think there just wasn't— there was $0.", "speaker": "Jonas Biery" }, { "id": "cue-904", "start": 7085.551, "end": 7088.703, "text": "So the application, you know, 50% of 0 is 0.", "speaker": "Jonas Biery" }, { "id": "cue-905", "start": 7089.43, "end": 7090.545, "text": "I think that's been the case in at least one other year.", "speaker": "Jonas Biery" }, { "id": "cue-906", "start": 7091.859, "end": 7100.629, "text": "And then you're right, absolutely, that there have been multiple years where that policy was waived to fund other things in that year.", "speaker": "Jonas Biery" }, { "id": "cue-907", "start": 7101.082, "end": 7110.522, "text": "And so it is a very specific recommendation that we're making to not waive the policy again and to actually use that as intended.", "speaker": "Jonas Biery" }, { "id": "cue-908", "start": 7110.604, "end": 7113.314, "text": "But again, up to council's discretion to make that choice.", "speaker": "Jonas Biery" }, { "id": "cue-909", "start": 7115.646, "end": 7115.807, "text": "Okay.", "speaker": "Angelita Morillo" }, { "id": "cue-910", "start": 7116.244, "end": 7120.399, "text": "So basically that policy is obviously only enforced when there's funds to move.", "speaker": "Angelita Morillo" }, { "id": "cue-911", "start": 7120.447, "end": 7121.385, "text": "And in the years that we haven't done it, they're not going to move it.", "speaker": "Angelita Morillo" }, { "id": "cue-912", "start": 7123.466, "end": 7124.877, "text": "Okay, that makes sense.", "speaker": "Angelita Morillo" }, { "id": "cue-913", "start": 7125.631, "end": 7127.379, "text": "I think that's all I have for this section.", "speaker": "Angelita Morillo" }, { "id": "cue-914", "start": 7127.828, "end": 7130.393, "text": "Sorry, can I just clarify one other thing on that?", "speaker": "Unidentified speaker" }, { "id": "cue-915", "start": 7130.458, "end": 7141.619, "text": "So the July supplemental, part of the funding from that came from the BLT reserve, and that BLT reserve is held in contingency.", "speaker": "Unidentified speaker" }, { "id": "cue-916", "start": 7141.683, "end": 7145.74, "text": "So it is still— it can still be accessed in the current year.", "speaker": "Unidentified speaker" }, { "id": "cue-917", "start": 7145.788, "end": 7148.033, "text": "So it's not like moving it out entirely.", "speaker": "Unidentified speaker" }, { "id": "cue-918", "start": 7148.098, "end": 7149.765, "text": "It's still able to be accessed in the current year.", "speaker": "Unidentified speaker" }, { "id": "cue-919", "start": 7152.426, "end": 7153.388, "text": "Okay, thank you so much.", "speaker": "Angelita Morillo" }, { "id": "cue-920", "start": 7153.693, "end": 7156.097, "text": "Um, I think that's all my questions for this portion for now.", "speaker": "Angelita Morillo" }, { "id": "cue-921", "start": 7156.338, "end": 7156.594, "text": "Thanks.", "speaker": "Angelita Morillo" }, { "id": "cue-922", "start": 7157.155, "end": 7157.957, "text": "Thank you, Councilor Maria.", "speaker": "Jamie Dunphy" }, { "id": "cue-923", "start": 7158.261, "end": 7158.726, "text": "Councilor Smith.", "speaker": "Jamie Dunphy" }, { "id": "cue-924", "start": 7159.72, "end": 7160.826, "text": "Thank you, Council President.", "speaker": "Loretta Smith" }, { "id": "cue-925", "start": 7160.906, "end": 7161.307, "text": "Thank you.", "speaker": "Loretta Smith" }, { "id": "cue-926", "start": 7161.724, "end": 7166.597, "text": "Could we go back to the $2.1 million in the short-term rental investment?", "speaker": "Loretta Smith" }, { "id": "cue-927", "start": 7166.677, "end": 7176.471, "text": "Can you walk me through why we are paying something back, or is this based on the rental, uh, the number of rental rates?", "speaker": "Loretta Smith" }, { "id": "cue-928", "start": 7176.519, "end": 7178.086, "text": "Because you could you explain that one to me?", "speaker": "Loretta Smith" }, { "id": "cue-929", "start": 7178.328, "end": 7180.365, "text": "Yeah, so we're not paying anything back.", "speaker": "Unidentified speaker" }, { "id": "cue-930", "start": 7180.429, "end": 7184.179, "text": "It's just the policy as it was written, and I can get you the citation.", "speaker": "Unidentified speaker" }, { "id": "cue-931", "start": 7184.244, "end": 7187.797, "text": "I think it was a 2016 resolution that was adopted.", "speaker": "Unidentified speaker" }, { "id": "cue-932", "start": 7190.016, "end": 7201.874, "text": "It just set up that as essentially when they were early in creating that short-term rental revenue fee, they directed some of it to the Housing Investment Fund.", "speaker": "Unidentified speaker" }, { "id": "cue-933", "start": 7202.829, "end": 7219.964, "text": "And part of the policy at that time was to take amounts that came in, because it comes into the general fund, amounts that come in above the forecast were direct— were to be transferred in the fall bump at the time to the Housing Investment Fund.", "speaker": "Unidentified speaker" }, { "id": "cue-934", "start": 7220.415, "end": 7221.416, "text": "So that's just the policy.", "speaker": "Unidentified speaker" }, { "id": "cue-935", "start": 7221.61, "end": 7223.585, "text": "That's just how they wrote the policy at the time.", "speaker": "Unidentified speaker" }, { "id": "cue-936", "start": 7223.699, "end": 7225.14, "text": "And we've been following this policy?", "speaker": "Loretta Smith" }, { "id": "cue-937", "start": 7225.819, "end": 7226.596, "text": "We have.", "speaker": "Unidentified speaker" }, { "id": "cue-938", "start": 7227.422, "end": 7231.394, "text": "And but council has, you know, You could decide not to follow it.", "speaker": "Unidentified speaker" }, { "id": "cue-939", "start": 7231.474, "end": 7231.844, "text": "We just—.", "speaker": "Loretta Smith" }, { "id": "cue-940", "start": 7231.876, "end": 7232.31, "text": "That's how we follow it.", "speaker": "Unidentified speaker" }, { "id": "cue-941", "start": 7232.374, "end": 7244.68, "text": "Well, what I'm trying to figure out is, because this $2.1 million looks very similar to a $2.1 million that we had in our Spring Towel, and is this an attempt to get that money back?", "speaker": "Loretta Smith" }, { "id": "cue-942", "start": 7248.568, "end": 7248.761, "text": "No.", "speaker": "Mitch Green" }, { "id": "cue-943", "start": 7249.227, "end": 7253.613, "text": "I still don't know what the— how you calculated $2.1 million.", "speaker": "Loretta Smith" }, { "id": "cue-944", "start": 7253.982, "end": 7265.823, "text": "So are you saying that we— the money that we received on the rental Um, the short-term rental monies that we received $2.1 million above that?", "speaker": "Loretta Smith" }, { "id": "cue-945", "start": 7266.759, "end": 7273.85, "text": "Whatever was budgeted, we received $2.1 million more than that, and it comes— it falls into the general fund, and then we send it out.", "speaker": "Unidentified speaker" }, { "id": "cue-946", "start": 7274.349, "end": 7279.261, "text": "So this is just the mechanism that was established in that resolution per that council.", "speaker": "Unidentified speaker" }, { "id": "cue-947", "start": 7279.39, "end": 7291.815, "text": "Seems like that could be fool's gold because you could put— I'm going to budget $2.1 million and say, you know what you are likely to have come in, and then you just take another $3 million and put it in there.", "speaker": "Loretta Smith" }, { "id": "cue-948", "start": 7292.253, "end": 7300.693, "text": "So I don't know how you can budget $2.1 million lower.", "speaker": "Loretta Smith" }, { "id": "cue-949", "start": 7301.223, "end": 7302.96, "text": "How do you budget that?", "speaker": "Loretta Smith" }, { "id": "cue-950", "start": 7303.009, "end": 7305.339, "text": "That seems like an awfully big number.", "speaker": "Loretta Smith" }, { "id": "cue-951", "start": 7305.861, "end": 7313.254, "text": "Yeah, Councilor, let me— I think this is around the revenue that's collected, not the expense.", "speaker": "Jonas Biery" }, { "id": "cue-952", "start": 7313.319, "end": 7326.773, "text": "So what happens is You know, the Housing Bureau budgets an amount, an expense amount, based upon what they expect to receive, the amount of revenues they expect to receive, so that their revenues match expenditures as required.", "speaker": "Jonas Biery" }, { "id": "cue-953", "start": 7327.334, "end": 7334.034, "text": "What happens, what happened this year is that fund, the short-term rental revenue, was more than expected.", "speaker": "Jonas Biery" }, { "id": "cue-954", "start": 7334.402, "end": 7335.701, "text": "So it's $2.1 million.", "speaker": "Jonas Biery" }, { "id": "cue-955", "start": 7336.615, "end": 7342.369, "text": "Ergo, the existing policy council direction says take that additional revenue.", "speaker": "Jonas Biery" }, { "id": "cue-956", "start": 7342.417, "end": 7342.465, "text": "Okay.", "speaker": "Jonas Biery" }, { "id": "cue-957", "start": 7343.107, "end": 7345.13, "text": "And adjust in the fall TAO.", "speaker": "Jonas Biery" }, { "id": "cue-958", "start": 7345.371, "end": 7348.502, "text": "So no fund money, that's, that's straight general fund money, right?", "speaker": "Loretta Smith" }, { "id": "cue-959", "start": 7348.839, "end": 7349.192, "text": "It could be—.", "speaker": "Loretta Smith" }, { "id": "cue-960", "start": 7349.209, "end": 7351.328, "text": "It's collected into the general fund.", "speaker": "Jonas Biery" }, { "id": "cue-961", "start": 7351.537, "end": 7352.067, "text": "Yeah.", "speaker": "Jonas Biery" }, { "id": "cue-962", "start": 7352.821, "end": 7356.948, "text": "And sorry, the other thing I would just note is, you know, we call these required adjustments.", "speaker": "Jonas Biery" }, { "id": "cue-963", "start": 7357.012, "end": 7362.567, "text": "As Ruth said, uh, there's probably a pathway where council could choose to modify or adjust the policy.", "speaker": "Jonas Biery" }, { "id": "cue-964", "start": 7362.615, "end": 7371.97, "text": "We call them required because we feel like they're required for us to make because they're reflective of existing because you knew what I was getting ready to say.", "speaker": "Jonas Biery" }, { "id": "cue-965", "start": 7372.819, "end": 7378.093, "text": "Because I was going to tell you, you're taking our job away and you just put that $2.1 million where you want it to.", "speaker": "Loretta Smith" }, { "id": "cue-966", "start": 7378.654, "end": 7379.054, "text": "Yeah, yeah.", "speaker": "Eric Zimmerman" }, { "id": "cue-967", "start": 7379.135, "end": 7385.802, "text": "And just, I, you know, we don't— I would say from my seat, um, I don't have a position where I can do things outside of what council directs.", "speaker": "Jonas Biery" }, { "id": "cue-968", "start": 7385.882, "end": 7388.191, "text": "And so these are things that we've been directed by council.", "speaker": "Jonas Biery" }, { "id": "cue-969", "start": 7388.607, "end": 7392.31, "text": "If council directs to do something otherwise, then, uh, then that's what can be reflected.", "speaker": "Jonas Biery" }, { "id": "cue-970", "start": 7392.678, "end": 7395.035, "text": "Yeah, but wouldn't you take that money out?", "speaker": "Loretta Smith" }, { "id": "cue-971", "start": 7395.099, "end": 7396.333, "text": "Why are you taking it out now?", "speaker": "Loretta Smith" }, { "id": "cue-972", "start": 7396.461, "end": 7402.472, "text": "Because this could be used as a part of a bump and not waiting to take it out of this, the, the spring budget?", "speaker": "Loretta Smith" }, { "id": "cue-973", "start": 7402.713, "end": 7404.368, "text": "Why are you taking it out now?", "speaker": "Loretta Smith" }, { "id": "cue-974", "start": 7404.577, "end": 7411.34, "text": "Yeah, as Ruth said, I believe that's specifically what the language in the legislation says, is do it in the fall, uh, fall adjustment.", "speaker": "Jonas Biery" }, { "id": "cue-975", "start": 7411.47, "end": 7412.835, "text": "So do it in the fall adjustment.", "speaker": "Loretta Smith" }, { "id": "cue-976", "start": 7413.502, "end": 7413.68, "text": "Okay.", "speaker": "Loretta Smith" }, { "id": "cue-977", "start": 7414.615, "end": 7429.247, "text": "Um, the, the other piece is, uh, why would the new grants be appropriated out of the fall adjustment and not the bigger budget?", "speaker": "Loretta Smith" }, { "id": "cue-978", "start": 7430.08, "end": 7433.584, "text": "Shouldn't that be in the bigger budget already, the new grants?", "speaker": "Loretta Smith" }, { "id": "cue-979", "start": 7434.859, "end": 7437.798, "text": "Because if they're new, you know you're going to appropriate so many grants.", "speaker": "Loretta Smith" }, { "id": "cue-980", "start": 7437.863, "end": 7439.816, "text": "Why was that not put in the original budget?", "speaker": "Loretta Smith" }, { "id": "cue-981", "start": 7442.139, "end": 7447.474, "text": "So I believe we can get you the details, and we have a full spreadsheet of all of the grants.", "speaker": "Unidentified speaker" }, { "id": "cue-982", "start": 7447.523, "end": 7454.581, "text": "I believe these are things that have come in this fiscal year that they may not— that bureaus may not have known they were going to get this fiscal year.", "speaker": "Unidentified speaker" }, { "id": "cue-983", "start": 7455.111, "end": 7464.011, "text": "Okay, so these are grants that we got awarded from outside sources that we are now getting ready to award, but we're using our own general fund money?", "speaker": "Loretta Smith" }, { "id": "cue-984", "start": 7465.168, "end": 7466.823, "text": "No, it's entirely in the grants fund.", "speaker": "Unidentified speaker" }, { "id": "cue-985", "start": 7466.871, "end": 7468.67, "text": "It's all grant money.", "speaker": "Unidentified speaker" }, { "id": "cue-986", "start": 7468.927, "end": 7474.036, "text": "I really don't even understand the grants money because all of a sudden it's a big multi-hundred million dollar grant.", "speaker": "Loretta Smith" }, { "id": "cue-987", "start": 7474.084, "end": 7482.056, "text": "I don't know where they get their money or how they get but so are you saying that they did not know about this in the spring, this $10 million?", "speaker": "Loretta Smith" }, { "id": "cue-988", "start": 7483.909, "end": 7485.471, "text": "I don't know specifically on all of them.", "speaker": "Unidentified speaker" }, { "id": "cue-989", "start": 7485.535, "end": 7488.08, "text": "Again, I— we can get you the details on each one.", "speaker": "Unidentified speaker" }, { "id": "cue-990", "start": 7488.418, "end": 7488.466, "text": "I—.", "speaker": "Unidentified speaker" }, { "id": "cue-991", "start": 7489.143, "end": 7491.835, "text": "Yeah, so I don't, I don't know all the details of each line item.", "speaker": "Unidentified speaker" }, { "id": "cue-992", "start": 7492.368, "end": 7501.01, "text": "Because this right here to me is— it is also another egregious thing that we should have known about in the spring.", "speaker": "Loretta Smith" }, { "id": "cue-993", "start": 7501.211, "end": 7511.191, "text": "This high of a number, you don't just pull This out of your back pocket and say, oh, I have, I have new grants and $10 million, we got to get that out of the, um, the fall TAO.", "speaker": "Loretta Smith" }, { "id": "cue-994", "start": 7512.137, "end": 7513.259, "text": "That doesn't make sense to me.", "speaker": "Loretta Smith" }, { "id": "cue-995", "start": 7514.205, "end": 7522.604, "text": "It, it just— they don't even have enough time to even put out an RFP and get it back quick enough to know that they need another $10 million.", "speaker": "Loretta Smith" }, { "id": "cue-996", "start": 7523.197, "end": 7524.88, "text": "They knew about this prior to.", "speaker": "Loretta Smith" }, { "id": "cue-997", "start": 7525.842, "end": 7530.891, "text": "It's too early in, in the process for them to know that they have new grants.", "speaker": "Loretta Smith" }, { "id": "cue-998", "start": 7530.971, "end": 7532.613, "text": "Councilwoman Smith, Yes.", "speaker": "Jonas Biery" }, { "id": "cue-999", "start": 7535.574, "end": 7560.63, "text": "So I— this is, um, it's, it's difficult for me to, to buy, and it is taking up a big chunk of money, especially when they got multi-hundreds of millions of dollars in the grant fund, and you're saying it's not coming out of that grant fund It's coming out of the general fund.", "speaker": "Loretta Smith" }, { "id": "cue-1000", "start": 7560.63, "end": 7562.56, "text": "Sorry, it's not coming out of the general fund.", "speaker": "Unidentified speaker" }, { "id": "cue-1001", "start": 7562.57, "end": 7563.79, "text": "It is in the grants fund.", "speaker": "Unidentified speaker" }, { "id": "cue-1002", "start": 7563.79, "end": 7570.39, "text": "And apologies, I probably should have put this slide in the earlier section of the presentation, but none of this is general fund money.", "speaker": "Unidentified speaker" }, { "id": "cue-1003", "start": 7570.39, "end": 7570.87, "text": "It's all grants.", "speaker": "Unidentified speaker" }, { "id": "cue-1004", "start": 7570.87, "end": 7572.46, "text": "So why are we trying to adjust this?", "speaker": "Loretta Smith" }, { "id": "cue-1005", "start": 7573.41, "end": 7576.72, "text": "Because they've already— they already knew what they were going to do.", "speaker": "Loretta Smith" }, { "id": "cue-1006", "start": 7577.33, "end": 7586.1, "text": "Well, I think, and again, we'll have— I mean, we do have, I just don't know if it's published yet, the sort of detail with each I think it's literally a line item detail of every grant.", "speaker": "Jonas Biery" }, { "id": "cue-1007", "start": 7587.06, "end": 7595.43, "text": "On the new grant piece, and again, I don't have, as Ruth indicated, we don't have detail on each specific piece that's in there.", "speaker": "Jonas Biery" }, { "id": "cue-1008", "start": 7595.48, "end": 7600.44, "text": "My understanding is that by and large, these are grants that we have received.", "speaker": "Jonas Biery" }, { "id": "cue-1009", "start": 7600.44, "end": 7603.6, "text": "So we're receiving a new grant and we're appropriating now doing something with that grant.", "speaker": "Jonas Biery" }, { "id": "cue-1010", "start": 7603.6, "end": 7604.06, "text": "That's what I asked.", "speaker": "Loretta Smith" }, { "id": "cue-1011", "start": 7604.44, "end": 7605.96, "text": "These are outside monies?", "speaker": "Loretta Smith" }, { "id": "cue-1012", "start": 7605.96, "end": 7608.89, "text": "And she said no, this is money that was in the grants fund.", "speaker": "Loretta Smith" }, { "id": "cue-1013", "start": 7608.9, "end": 7611.2, "text": "Well, it's budgeted in the grants fund.", "speaker": "Jonas Biery" }, { "id": "cue-1014", "start": 7611.23, "end": 7615.162, "text": "Fund is where we capture that reality.", "speaker": "Jonas Biery" }, { "id": "cue-1015", "start": 7616.381, "end": 7625.947, "text": "And it is true that in an ideal world, we see all that ahead of time in advance so that we can just reflect it at one moment in the budget.", "speaker": "Jonas Biery" }, { "id": "cue-1016", "start": 7626.509, "end": 7631.741, "text": "But often that isn't the case because we're getting things happening, you know, in real time throughout the 12-month fiscal year.", "speaker": "Jonas Biery" }, { "id": "cue-1017", "start": 7632.11, "end": 7636.01, "text": "And so I want to go back to my original ordinance from last year.", "speaker": "Loretta Smith" }, { "id": "cue-1018", "start": 7636.122, "end": 7642.242, "text": "I don't know if it's still good, But again, you waited 3 months.", "speaker": "Loretta Smith" }, { "id": "cue-1019", "start": 7642.338, "end": 7648.555, "text": "You're supposed to— if you get new grant money in within that 15 days, you need to tell us that you got— you received it.", "speaker": "Loretta Smith" }, { "id": "cue-1020", "start": 7648.603, "end": 7651.286, "text": "So when you give us this, it looks crazy.", "speaker": "Loretta Smith" }, { "id": "cue-1021", "start": 7652.426, "end": 7654.434, "text": "You waited 3 months and then called the ordinance.", "speaker": "Loretta Smith" }, { "id": "cue-1022", "start": 7654.595, "end": 7656.073, "text": "Yeah, thank you for flagging that as well.", "speaker": "Jonas Biery" }, { "id": "cue-1023", "start": 7656.362, "end": 7668.914, "text": "I believe— and I don't— I think this is in the information in the spreadsheet, but I know we had at least a conversation about tracking this as well so that we can identify in that bigger spreadsheet at what point it had been communicated.", "speaker": "Jonas Biery" }, { "id": "cue-1024", "start": 7668.962, "end": 7671.91, "text": "Typically through the city administrator report would be where that happened.", "speaker": "Jonas Biery" }, { "id": "cue-1025", "start": 7672.199, "end": 7675.42, "text": "I don't have that crosswalk in front of me, but yes, hear you.", "speaker": "Jonas Biery" }, { "id": "cue-1026", "start": 7675.628, "end": 7687.134, "text": "We're working on making sure that we both do that reporting in alignment with that direction and that we're connecting that tissue so that we can see that transparency and transparently in these actions.", "speaker": "Jonas Biery" }, { "id": "cue-1027", "start": 7687.63, "end": 7687.887, "text": "Okay.", "speaker": "Loretta Smith" }, { "id": "cue-1028", "start": 7688.367, "end": 7688.608, "text": "All right.", "speaker": "Loretta Smith" }, { "id": "cue-1029", "start": 7688.752, "end": 7689.153, "text": "Thank you.", "speaker": "Loretta Smith" }, { "id": "cue-1030", "start": 7689.393, "end": 7690.979, "text": "Thank you, Councilor Smith.", "speaker": "Jamie Dunphy" }, { "id": "cue-1031", "start": 7691.332, "end": 7692.022, "text": "Councilor Pirtle-Guiney.", "speaker": "Jamie Dunphy" }, { "id": "cue-1032", "start": 7693.016, "end": 7694.187, "text": "Thank you, Council President.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1033", "start": 7695.005, "end": 7710.628, "text": "Colleagues, the Council President told me that this would be the right time to preview an amendment that I will be bringing when we hear the fall TAO in Committee of the Whole, and I wanted to make sure to do that before we get to that time next week and it comes as a surprise to anybody.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1034", "start": 7711.238, "end": 7719.193, "text": "So I want to speak briefly about the Community Opportunities and Enhancement Program, or COEP program, that was mentioned briefly on slide— what was that?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1035", "start": 7722.609, "end": 7734.318, "text": "This is one of the programs that Ruth listed as a non-general fund decision where money is being put into the program from a self-contained fund.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1036", "start": 7735.039, "end": 7737.605, "text": "This program does not touch the general fund currently.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1037", "start": 7738.552, "end": 7748.03, "text": "I want to start before I get into the details by thanking DCA Warren, folks in procurement and the budget office for working with us to understand what happened to co-op funding after the last budget.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1038", "start": 7748.095, "end": 7748.351, "text": "Thank you.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1039", "start": 7749.057, "end": 7760.531, "text": "And importantly, to all those folks in the mayor's office for helping us to make sure that some of that was in— some of those funds were replaced in the TAO proposal that is being brought forward to council.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1040", "start": 7761.173, "end": 7765.522, "text": "And also to Councilor Zimmerman for his partnership on this work as we move forward.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1041", "start": 7766.485, "end": 7768.988, "text": "So Co+op exists for a very straightforward reason.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1042", "start": 7769.052, "end": 7785.05, "text": "When the city invests billions of dollars in construction, we need to make sure that those public investments create opportunities for Portlanders who pre-apprenticeship programs, which are funded through the co-op program, are a critical part of making that happen.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1043", "start": 7785.22, "end": 7795.83, "text": "They help people get the training, certifications, support, and connections that they need to have a real shot when they apply for an apprenticeship program and move into union construction careers.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1044", "start": 7796.34, "end": 7801.38, "text": "That's especially important in light of the commitments that the city has made through our regional work plan to workforce increase the number of apprenticeships in Portland.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1045", "start": 7801.732, "end": 7803.255, "text": "Equity Agreement, or our WEA.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1046", "start": 7803.575, "end": 7808.559, "text": "I know some of these terms are new to some folks up here, but I know there are many of you who do know about these programs.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1047", "start": 7809.889, "end": 7827.419, "text": "These create a pathway into the trades for people who have historically faced barriers, and we have programs in Portland that work with Black Portlanders, that work with young people, that work with women, that work with formerly incarcerated individuals to make sure that they can enter the trades and work on these very expansive projects.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1048", "start": 7828.145, "end": 7829.777, "text": "Thank you.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1049", "start": 7832.062, "end": 7839.716, "text": "Last year in the budget, we transferred the co-op program from Prosper Portland back to our city bureaus.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1050", "start": 7840.623, "end": 7850.397, "text": "When we did that, there was a discussion about the necessity of that change and about the fact that the program would continue without changes when it moved back to the city.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1051", "start": 7851.92, "end": 7853.017, "text": "Unfortunately, that's not what happened.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1052", "start": 7854.308, "end": 7858.725, "text": "And the co-op program was not funded and was stalled.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1053", "start": 7859.744, "end": 7867.891, "text": "So I'm glad we're releasing $350,000 in co-op funding, which exists as a separate bucket within our budget in the fall TAO.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1054", "start": 7868.664, "end": 7872.461, "text": "And I am sincerely appreciative to folks who worked with us to get that there.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1055", "start": 7874.03, "end": 7875.964, "text": "We were— I apologize.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1056", "start": 7878.157, "end": 7881.575, "text": "In doing this, we also need to address the long-term funding stability of co-ops.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1057", "start": 7881.624, "end": 7881.737, "text": "Thank you.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1058", "start": 7882.438, "end": 7890.15, "text": "And double down on the importance of these programs through the renegotiation of our WIA, which will be coming up in the next year or so.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1059", "start": 7890.793, "end": 7896.862, "text": "Otherwise, I fear we are going to say goodbye to the pathways that help so many Portlanders into these union apprenticeship programs.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1060", "start": 7898.84, "end": 7910.378, "text": "Co-op funding levels over the last 2 years were significantly elevated because of one-time construction revenues from the Bull Run project, so we knew that these these programs would be taking a financial hit.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1061", "start": 7911.341, "end": 7929.959, "text": "The hit down to zero was obviously not what anybody thought was coming, and even with the addition of the $350,000, which will help to ensure that we are less likely to lose any of those programs over the coming year, those programs are still looking at a significant cut.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1062", "start": 7930.681, "end": 7942.995, "text": "Specifically, they were facing a total $2 million with Councilor Zimmerman, I will be bringing an amendment to further restore a portion of the cut funds to the tune of $600,000 additional.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1063", "start": 7943.911, "end": 7949.755, "text": "This will get programs back to just under 50% of the funding they had previously received.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1064", "start": 7950.51, "end": 7959.148, "text": "Again, we're not trying to reach back to the full amount of funding because there was an artificial increase in funding because of dollars coming in through the Bull Run project.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1065", "start": 7960.305, "end": 7963.036, "text": "But we do need to get these programs back up to that 50% level.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1066", "start": 7964.241, "end": 7969.51, "text": "We wanted to flag for you all, or I wanted to flag for you all, that this amendment was coming so that it didn't come as a surprise.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1067", "start": 7969.703, "end": 7982.764, "text": "I'm happy to answer any questions over the next week about the co-op program, the importance of it, and what seems to have happened when the program was moved over, as well as the conversations that we're already having about sustainable funding.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1068", "start": 7983.519, "end": 7994.318, "text": "The amendment will be pre-filed and available to the public well before the hearing next week, but I wanted to make sure you all had the time to ask questions even in advance of that as well.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1069", "start": 7994.752, "end": 7995.09, "text": "Thank you.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1070", "start": 7995.556, "end": 7996.54, "text": "Thank you, Councilor Pirtle-Guiney.", "speaker": "Jamie Dunphy" }, { "id": "cue-1071", "start": 7997.104, "end": 7997.636, "text": "Councilor Knoll.", "speaker": "Jamie Dunphy" }, { "id": "cue-1072", "start": 7997.991, "end": 7999.103, "text": "Thank you, Council President.", "speaker": "Sameer Kanal" }, { "id": "cue-1073", "start": 7999.2, "end": 8001.86, "text": "Councilor Pirtle-Guiney, where's the money coming from?", "speaker": "Sameer Kanal" }, { "id": "cue-1074", "start": 8004, "end": 8007.794, "text": "Co-op has a separate fund.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1075", "start": 8008.614, "end": 8012.135, "text": "I hesitate to use the word fund because fund means different things within our budget.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1076", "start": 8013.107, "end": 8026.093, "text": "Co-op has a separate line item which has been funded through a surcharge on projects that are— that the city— construction projects that the city needs to construct.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1077", "start": 8026.734, "end": 8027.888, "text": "Using duplicative words here.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1078", "start": 8029.058, "end": 8033.114, "text": "There are additional dollars in that fund that are sitting aside right now.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1079", "start": 8033.243, "end": 8035.695, "text": "That is where the $350,000 came from.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1080", "start": 8035.808, "end": 8037.763, "text": "It is where we will pull this $600,000 from.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1081", "start": 8038.8, "end": 8040.385, "text": "So it doesn't touch other programs.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1082", "start": 8040.434, "end": 8048.514, "text": "It just releases some of the money that is already set aside for these programs in the next year so that we don't lose the providers who we work with.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1083", "start": 8049.061, "end": 8050.042, "text": "Great, thank you.", "speaker": "Sameer Kanal" }, { "id": "cue-1084", "start": 8050.895, "end": 8055.399, "text": "I have a question on the same slide, so that's why I jumped on it here.", "speaker": "Sameer Kanal" }, { "id": "cue-1085", "start": 8055.495, "end": 8056.589, "text": "It's about the next line.", "speaker": "Sameer Kanal" }, { "id": "cue-1086", "start": 8059.08, "end": 8066.536, "text": "Can you speak to— we increased the PPA Health plan.", "speaker": "Sameer Kanal" }, { "id": "cue-1087", "start": 8066.632, "end": 8077.229, "text": "And then in part of last year, Councilors Smith and I put up a paired amendments, one to PPA and one to the general health plan for everybody else.", "speaker": "Sameer Kanal" }, { "id": "cue-1088", "start": 8077.775, "end": 8088.517, "text": "And as part of that, we also ensured that we were funding it and there was supposed to be a little bit of extra wiggle room there, but also aware that we didn't have a ton of money in the fund.", "speaker": "Sameer Kanal" }, { "id": "cue-1089", "start": 8088.581, "end": 8088.694, "text": "Okay.", "speaker": "Sameer Kanal" }, { "id": "cue-1090", "start": 8089.336, "end": 8102.104, "text": "So my understanding is that that was designed to avoid this situation effectively, where we'd be taking more money out of a smaller fund to fund something that, um, was not fully funded in the first place.", "speaker": "Sameer Kanal" }, { "id": "cue-1091", "start": 8102.425, "end": 8104.288, "text": "Can you just kind of square that circle for me?", "speaker": "Sameer Kanal" }, { "id": "cue-1092", "start": 8104.432, "end": 8105.685, "text": "Like, what, what am I, what am I missing?", "speaker": "Sameer Kanal" }, { "id": "cue-1093", "start": 8105.733, "end": 8106.777, "text": "How do we get to this point?", "speaker": "Sameer Kanal" }, { "id": "cue-1094", "start": 8107.901, "end": 8118.032, "text": "I may need to phone a friend, or we might need to get back to you, um, because I don't have a ton of details on— I Yeah, I just don't have all the details.", "speaker": "Unidentified speaker" }, { "id": "cue-1095", "start": 8118.096, "end": 8124.029, "text": "I mean, the baseline is what I said earlier, which is that claims came in much, much higher than forecast.", "speaker": "Unidentified speaker" }, { "id": "cue-1096", "start": 8124.574, "end": 8132.977, "text": "It's not dissimilar to what happened in the LMBC fund, the main health plan fund for the rest of the city.", "speaker": "Unidentified speaker" }, { "id": "cue-1097", "start": 8134.115, "end": 8146.094, "text": "The claims costs just— we have a third-party actuarial firm that provides projections for both health funds in terms of how much our expenses are forecast to be.", "speaker": "Unidentified speaker" }, { "id": "cue-1098", "start": 8146.382, "end": 8150.488, "text": "And it was just, they just came in higher than that.", "speaker": "Unidentified speaker" }, { "id": "cue-1099", "start": 8151.514, "end": 8163.766, "text": "But as to what you're speaking to with the amendment and the like, we can get you more details on exact numbers and where we are vis-à-vis what was expected when council adopted that.", "speaker": "Unidentified speaker" }, { "id": "cue-1100", "start": 8164.504, "end": 8165.306, "text": "Great, thank you.", "speaker": "Sameer Kanal" }, { "id": "cue-1101", "start": 8165.707, "end": 8170.453, "text": "Yeah, I mean, obviously we wanna make sure that we're not leaving a deficit some variety here.", "speaker": "Sameer Kanal" }, { "id": "cue-1102", "start": 8171.014, "end": 8188.784, "text": "And I, I just, um, I want to make sure that I understand that so that for the next time when we have this conversation, we're, uh, able to set this up for success so that we're not needing to drain a fund that— my understanding, I remember the shape of the graph— is not, um, not as at its highest level.", "speaker": "Sameer Kanal" }, { "id": "cue-1103", "start": 8188.864, "end": 8188.96, "text": "Yeah.", "speaker": "Sameer Kanal" }, { "id": "cue-1104", "start": 8189.361, "end": 8197.871, "text": "And so we, we need to, you know, and I know, uh, CFO Biery's probably already working, if not all, um, in progress on it in, in shoring up that fund over time.", "speaker": "Sameer Kanal" }, { "id": "cue-1105", "start": 8198.336, "end": 8205.366, "text": "But in terms of, um, and BHR as well, but in terms of, uh, how do we make sure that we're not taking more money out of it?", "speaker": "Sameer Kanal" }, { "id": "cue-1106", "start": 8205.462, "end": 8221.174, "text": "Because I, I basically, my, my understanding is the point of the vote last time included a caveat, not only increasing to the highest, uh, of the 3 options of the PPA, um, health plan options, but also ensuring that we wouldn't need to do this.", "speaker": "Sameer Kanal" }, { "id": "cue-1107", "start": 8221.303, "end": 8223.694, "text": "So that, that's just the part I'm trying to Okay.", "speaker": "Sameer Kanal" }, { "id": "cue-1108", "start": 8224.176, "end": 8224.514, "text": "Yeah.", "speaker": "Sameer Kanal" }, { "id": "cue-1109", "start": 8225.366, "end": 8226.893, "text": "Thanks, Council President.", "speaker": "Sameer Kanal" }, { "id": "cue-1110", "start": 8227.311, "end": 8228.162, "text": "Thank you, Councilor Kanal.", "speaker": "Jamie Dunphy" }, { "id": "cue-1111", "start": 8228.902, "end": 8232.987, "text": "Okay, that exhausts the queue of councilors.", "speaker": "Jamie Dunphy" }, { "id": "cue-1112", "start": 8233.405, "end": 8234.194, "text": "Onto the next section.", "speaker": "Jamie Dunphy" }, { "id": "cue-1113", "start": 8234.404, "end": 8235.595, "text": "Great.", "speaker": "Unidentified speaker" }, { "id": "cue-1114", "start": 8237.672, "end": 8239.298, "text": "Am I teeing this one up?", "speaker": "Jamie Dunphy" }, { "id": "cue-1115", "start": 8239.846, "end": 8241.054, "text": "You can go ahead and do that.", "speaker": "Unidentified speaker" }, { "id": "cue-1116", "start": 8241.428, "end": 8241.814, "text": "Great.", "speaker": "Loretta Smith" }, { "id": "cue-1117", "start": 8242.842, "end": 8243.276, "text": "All right.", "speaker": "Loretta Smith" }, { "id": "cue-1118", "start": 8243.341, "end": 8243.791, "text": "So—.", "speaker": "Loretta Smith" }, { "id": "cue-1119", "start": 8244.401, "end": 8249.947, "text": "Sorry, there's— sorry, there's a quick slide on process improvements, and then can I pass it over to you?", "speaker": "Unidentified speaker" }, { "id": "cue-1120", "start": 8250.576, "end": 8251.217, "text": "Absolutely.", "speaker": "Mitch Green" }, { "id": "cue-1121", "start": 8251.794, "end": 8264.373, "text": "Okay, so this slide, before we jump into the calendar part, which is what Council President's going to speak to, we wanted to circle back on the last time we were at Council on September 10th.", "speaker": "Unidentified speaker" }, { "id": "cue-1122", "start": 8264.453, "end": 8274.275, "text": "We had a conversation about budget process improvements, gathering all of the feedback that we'd heard over the prior months, and coming to you with kind of options about what could change going forward.", "speaker": "Unidentified speaker" }, { "id": "cue-1123", "start": 8274.468, "end": 8289.588, "text": "So we wanted to come back to that and say, Here is what— this is an incomplete list, and I could spend much more time talking about this, but here's what we're planning to incorporate from that discussion at the work session.", "speaker": "Unidentified speaker" }, { "id": "cue-1124", "start": 8289.716, "end": 8302.529, "text": "And then subsequent to the work session, I also had 2 sessions with council staff and some councilors more informally to talk specifically about budget materials and what folks wanted to see in budget materials.", "speaker": "Unidentified speaker" }, { "id": "cue-1125", "start": 8302.723, "end": 8315.881, "text": "So here are the things I just wanted to highlight here, focusing— again, these focus on the things that sort of council is interested in on the public engagement and information portion of budget process.", "speaker": "Unidentified speaker" }, { "id": "cue-1126", "start": 8318.102, "end": 8330.422, "text": "Within the sort of information and access theme, we're looking to improve program offers, which exist within the current budget book and in our dashboard, but could be more robust and helpful.", "speaker": "Unidentified speaker" }, { "id": "cue-1127", "start": 8330.823, "end": 8339.873, "text": "And so we're adding FTE information, incorporating performance measures, and rolling decision package information up to the program offer level.", "speaker": "Unidentified speaker" }, { "id": "cue-1128", "start": 8339.97, "end": 8344.591, "text": "And that's the plan for the proposed and adopted books for '27-'28.", "speaker": "Unidentified speaker" }, { "id": "cue-1129", "start": 8345.827, "end": 8365.212, "text": "The second bullet there under number one is we're working on creating a budget data open data website, essentially a new website that where all of the spreadsheets can be stored and there's a proper data dictionary, and so that any member of the public could download it and figure out what it means, hopefully.", "speaker": "Unidentified speaker" }, { "id": "cue-1130", "start": 8365.632, "end": 8381.735, "text": "And then the third bullet is, Council President will speak to this, work sessions on sort of what I would call base budget or what if nothing changed budget information about all of the bureaus starting in January.", "speaker": "Unidentified speaker" }, { "id": "cue-1131", "start": 8381.93, "end": 8383.645, "text": "So much earlier.", "speaker": "Unidentified speaker" }, { "id": "cue-1132", "start": 8383.95, "end": 8390.364, "text": "Working on increasing council information sharing and providing additional trainings and analytical support.", "speaker": "Unidentified speaker" }, { "id": "cue-1133", "start": 8390.685, "end": 8395.079, "text": "And I'll be talking about that more in the coming weeks with councilors.", "speaker": "Unidentified speaker" }, { "id": "cue-1134", "start": 8396.458, "end": 8407.907, "text": "In the second budget decision-making support, looking at producing the sort of a current service level complete budget with a CA budget report in February.", "speaker": "Unidentified speaker" }, { "id": "cue-1135", "start": 8408.1, "end": 8415.289, "text": "And that would sort of expand again similar content to what you would hear in the work sessions in January, but in written form in February.", "speaker": "Unidentified speaker" }, { "id": "cue-1136", "start": 8416.203, "end": 8431.064, "text": "And then on the budget engagement front, Laura Oppenheimer, our interim engagement officer, is going to speak more to this in a couple of slides, but essentially doing earlier engagement to gather high-level priorities well in advance of the mayor's proposed.", "speaker": "Unidentified speaker" }, { "id": "cue-1137", "start": 8432.331, "end": 8435.685, "text": "So happy to have conversation about that.", "speaker": "Unidentified speaker" }, { "id": "cue-1138", "start": 8436.038, "end": 8446.647, "text": "Again today, but that's kind of the shortlist of things that I wanted to bring back to you all to say, here's what we're doing, in hopes that the next year will be smoother and more transparent.", "speaker": "Unidentified speaker" }, { "id": "cue-1139", "start": 8447.8, "end": 8449.243, "text": "Okay, now I can hand it to you.", "speaker": "Unidentified speaker" }, { "id": "cue-1140", "start": 8449.787, "end": 8450.765, "text": "Okay, thank you very much.", "speaker": "Jamie Dunphy" }, { "id": "cue-1141", "start": 8451.182, "end": 8455.861, "text": "So colleagues, I just wanted to very quickly frame up the budget calendar conversation.", "speaker": "Jamie Dunphy" }, { "id": "cue-1142", "start": 8456.919, "end": 8462.096, "text": "We're going to be looking at a budget process schedule resolution that comes alongside the, the how?", "speaker": "Jamie Dunphy" }, { "id": "cue-1143", "start": 8462.466, "end": 8465.821, "text": "And I want to talk in the big picture about how I'm approaching this budget schedule.", "speaker": "Jamie Dunphy" }, { "id": "cue-1144", "start": 8466.544, "end": 8469.627, "text": "I will not be the council president next year, and I don't know who will be.", "speaker": "Jamie Dunphy" }, { "id": "cue-1145", "start": 8470.478, "end": 8478.024, "text": "The next person may want to make a lot of changes to the budget process, and they may want to make a very few— make some very few.", "speaker": "Jamie Dunphy" }, { "id": "cue-1146", "start": 8478.281, "end": 8479.004, "text": "That's not a sentence.", "speaker": "Jamie Dunphy" }, { "id": "cue-1147", "start": 8479.566, "end": 8480.738, "text": "They want to make very few.", "speaker": "Jamie Dunphy" }, { "id": "cue-1148", "start": 8481.011, "end": 8483.082, "text": "They may have a good idea of how they want to operate.", "speaker": "Jamie Dunphy" }, { "id": "cue-1149", "start": 8483.403, "end": 8486.679, "text": "They may even be on a steep learning curve like I was.", "speaker": "Jamie Dunphy" }, { "id": "cue-1150", "start": 8487.112, "end": 8490.611, "text": "The next president may not even be somebody who's currently elected to this body.", "speaker": "Jamie Dunphy" }, { "id": "cue-1151", "start": 8491.83, "end": 8504.443, "text": "The main goal, my main goal, is to leave a roadmap for the next council president and for the next— or for this next council that is an iterative step forward from what we did in 2026.", "speaker": "Jamie Dunphy" }, { "id": "cue-1152", "start": 8504.764, "end": 8510.428, "text": "I'm trying to offer something complete enough for the next president to follow if they want to without having to reinvent the wheel.", "speaker": "Jamie Dunphy" }, { "id": "cue-1153", "start": 8511.183, "end": 8517.087, "text": "It's meant to provide the administration with enough information to plan and do their work during a leadership transition.", "speaker": "Jamie Dunphy" }, { "id": "cue-1154", "start": 8517.745, "end": 8524.772, "text": "And finally, it's meant to be something that this council and the next president can change either this month or early next year.", "speaker": "Jamie Dunphy" }, { "id": "cue-1155", "start": 8525.846, "end": 8529.793, "text": "This calendar is pretty close to what I shared a couple weeks ago with a couple of minor tweaks.", "speaker": "Jamie Dunphy" }, { "id": "cue-1156", "start": 8530.515, "end": 8534.814, "text": "The mayor's proposed due date is set at April 20th.", "speaker": "Jamie Dunphy" }, { "id": "cue-1157", "start": 8535.729, "end": 8545.911, "text": "The big new thing is the inclusion of dates for council to pre-file budget amendments for CBO review and a date with the— when those pre-filed budget amendments will be made public.", "speaker": "Jamie Dunphy" }, { "id": "cue-1158", "start": 8546.632, "end": 8548.572, "text": "Both of those are voluntary deadlines.", "speaker": "Jamie Dunphy" }, { "id": "cue-1159", "start": 8548.62, "end": 8554.102, "text": "The mayor's charter deadline is May 5th, and council has no hard deadline for amendments at all.", "speaker": "Jamie Dunphy" }, { "id": "cue-1160", "start": 8554.23, "end": 8560.706, "text": "However, both voluntary deadlines really helped us out last year, even if both had some problems with implementation.", "speaker": "Jamie Dunphy" }, { "id": "cue-1161", "start": 8560.818, "end": 8563.462, "text": "So they're both on the calendar for us to think about.", "speaker": "Jamie Dunphy" }, { "id": "cue-1162", "start": 8564.184, "end": 8565.867, "text": "And again, this is a roadmap.", "speaker": "Jamie Dunphy" }, { "id": "cue-1163", "start": 8566.171, "end": 8572.976, "text": "Council should feel free to change it as we work through this TAO process and to remove detail where they feel it's excessive.", "speaker": "Jamie Dunphy" }, { "id": "cue-1164", "start": 8573.875, "end": 8574.823, "text": "I won't be offended.", "speaker": "Jamie Dunphy" }, { "id": "cue-1165", "start": 8574.919, "end": 8584.17, "text": "This is simply a tool to try and be helpful for all of us, the 12 of us sitting up here, and for the entire administration that has to deal with whatever nonsense comes off this dais.", "speaker": "Jamie Dunphy" }, { "id": "cue-1166", "start": 8584.251, "end": 8588.346, "text": "So Ruth, I'm gonna turn it back to you for the rest of this presentation.", "speaker": "Jamie Dunphy" }, { "id": "cue-1167", "start": 8588.972, "end": 8589.486, "text": "Great.", "speaker": "Unidentified speaker" }, { "id": "cue-1168", "start": 8589.55, "end": 8599.016, "text": "So yes, so along with the TAO ordinance and the the financial policy code ordinance.", "speaker": "Unidentified speaker" }, { "id": "cue-1169", "start": 8599.097, "end": 8601.009, "text": "There is a calendar resolution.", "speaker": "Unidentified speaker" }, { "id": "cue-1170", "start": 8601.752, "end": 8606.633, "text": "All 3 of those are filed currently and going to be discussed at committee next week.", "speaker": "Unidentified speaker" }, { "id": "cue-1171", "start": 8606.698, "end": 8607.541, "text": "So just to be clear.", "speaker": "Unidentified speaker" }, { "id": "cue-1172", "start": 8609.32, "end": 8618.657, "text": "Okay, so this— the next 3 slides go through 3 months at a time, what will happen over the next 9 months, roughly speaking.", "speaker": "Unidentified speaker" }, { "id": "cue-1173", "start": 8619.011, "end": 8620.223, "text": "Here we are today at the beginning.", "speaker": "Unidentified speaker" }, { "id": "cue-1174", "start": 8620.275, "end": 8620.309, "text": "Wow.", "speaker": "Loretta Smith" }, { "id": "cue-1175", "start": 8622.018, "end": 8629.089, "text": "So the— in October, the hope is to— sorry, one other thing to note.", "speaker": "Unidentified speaker" }, { "id": "cue-1176", "start": 8629.169, "end": 8638.315, "text": "Some of the things on these slides are not on that— in the calendar resolution just because they're a little bit more internal-facing, but I thought it would be helpful to note them here.", "speaker": "Unidentified speaker" }, { "id": "cue-1177", "start": 8639.83, "end": 8647.889, "text": "So the hope is to have sort of both budget— mayor's budget guidance and budget process guidance out to the bureaus by the end of this month.", "speaker": "Unidentified speaker" }, { "id": "cue-1178", "start": 8648.699, "end": 8659.25, "text": "That is earlier than it has been in recent years, and I think would be a big help to getting information to you all and to the public earlier in the process.", "speaker": "Unidentified speaker" }, { "id": "cue-1179", "start": 8659.381, "end": 8660.548, "text": "So that's just one thing to note.", "speaker": "Unidentified speaker" }, { "id": "cue-1180", "start": 8662.576, "end": 8673.96, "text": "In November, we are sort of on a parallel track of a whole lot of technical work that has to happen in order to get the budget systems and our— and SAP ready for the next year.", "speaker": "Unidentified speaker" }, { "id": "cue-1181", "start": 8674.074, "end": 8674.647, "text": "Thank you.", "speaker": "Unidentified speaker" }, { "id": "cue-1182", "start": 8674.88, "end": 8683.443, "text": "Next fiscal year's budget development, as well as beginning to develop budget options, and can talk more about how that will happen.", "speaker": "Unidentified speaker" }, { "id": "cue-1183", "start": 8683.508, "end": 8686.336, "text": "But that's kind of the work for November.", "speaker": "Unidentified speaker" }, { "id": "cue-1184", "start": 8687.348, "end": 8694.353, "text": "In December, we'll be coming to you all with a forecast information work session on the 9th.", "speaker": "Unidentified speaker" }, { "id": "cue-1185", "start": 8694.819, "end": 8704.764, "text": "Hopefully we'll have the citywide, a new citywide revenue and expenditure forecast released 2 days before that, so that's an improvement.", "speaker": "Unidentified speaker" }, { "id": "cue-1186", "start": 8707.189, "end": 8712.891, "text": "And then continuing the work on the sort of budget development in the background with that in December.", "speaker": "Unidentified speaker" }, { "id": "cue-1187", "start": 8714.57, "end": 8739.346, "text": "And then looking to early in the new year, the budget calendar has those early budget committee work sessions, which are focused on sort of base budget information and, you know, the what-if-nothing-changed version of the budget for all of the bureaus.", "speaker": "Unidentified speaker" }, { "id": "cue-1188", "start": 8739.459, "end": 8748.14, "text": "And there is a suggestion— suggested order in the budget calendar resolution, but again, totally up to council to change the order of that.", "speaker": "Unidentified speaker" }, { "id": "cue-1189", "start": 8750.04, "end": 8757.723, "text": "At the end of January, we expect to have a budget calendar We expect bureaus to submit all of their budget information to the CA.", "speaker": "Unidentified speaker" }, { "id": "cue-1190", "start": 8757.964, "end": 8766.143, "text": "That will go into the CA's budget report, and it will also begin the process of talking about how to actually balance the proposed budget.", "speaker": "Unidentified speaker" }, { "id": "cue-1191", "start": 8769.57, "end": 8778.22, "text": "And then moving into February, those work sessions continue, and then the estimated date for the city administrator's budget report release yes.", "speaker": "Unidentified speaker" }, { "id": "cue-1192", "start": 8778.958, "end": 8780.805, "text": "Is, uh, February 19th.", "speaker": "Unidentified speaker" }, { "id": "cue-1193", "start": 8782.17, "end": 8790.503, "text": "Um, and then that, um, in the beginning of March would come before, um, council.", "speaker": "Unidentified speaker" }, { "id": "cue-1194", "start": 8791.563, "end": 8794.196, "text": "Um, the date on the resolution is March 4th.", "speaker": "Unidentified speaker" }, { "id": "cue-1195", "start": 8794.774, "end": 8802.048, "text": "Um, on March 10th, there is a suggested council, um, budget priorities work session.", "speaker": "Unidentified speaker" }, { "id": "cue-1196", "start": 8802.096, "end": 8809.138, "text": "This is similar to what happened last year that was added into the budget calendar, but it's a bit earlier in the process.", "speaker": "Unidentified speaker" }, { "id": "cue-1197", "start": 8809.59, "end": 8820.039, "text": "And so the hope is that it's— I mean, I think this timing sets it up so that the mayor can hear that feedback and still incorporate it into his proposed budget in time.", "speaker": "Unidentified speaker" }, { "id": "cue-1198", "start": 8822.09, "end": 8832.829, "text": "The spring TAO also begins around the end of March, so there would be a work session that last week after spring break.", "speaker": "Unidentified speaker" }, { "id": "cue-1199", "start": 8834.765, "end": 8840.718, "text": "And then we get into the thick of it, April, May, and June.", "speaker": "Unidentified speaker" }, { "id": "cue-1200", "start": 8840.814, "end": 8842.622, "text": "The start of April is the spring TAO.", "speaker": "Unidentified speaker" }, { "id": "cue-1201", "start": 8843.574, "end": 8854.03, "text": "Again, that timing is to maximize the amount of financial data we have available before we have to file that so that we actually have a decent forecast of what the year will look like.", "speaker": "Unidentified speaker" }, { "id": "cue-1202", "start": 8855.235, "end": 8857.04, "text": "And but that also happens yes.", "speaker": "Unidentified speaker" }, { "id": "cue-1203", "start": 8857.412, "end": 8861.036, "text": "You know, before the proposed is released, before things get really crazy.", "speaker": "Unidentified speaker" }, { "id": "cue-1204", "start": 8862.73, "end": 8867.08, "text": "And then the mayor's proposed release would be April 20th.", "speaker": "Unidentified speaker" }, { "id": "cue-1205", "start": 8867.596, "end": 8880.128, "text": "The proposed budget hearings, which are required under state budget law and include public testimony, and they're hearings because it's both the city and Prosper, would be Thursday, April 22nd.", "speaker": "Unidentified speaker" }, { "id": "cue-1206", "start": 8883.806, "end": 8889.483, "text": "And then immediately the following week would be Budget Committee work sessions.", "speaker": "Unidentified speaker" }, { "id": "cue-1207", "start": 8890.617, "end": 8892.111, "text": "Those work sessions would begin.", "speaker": "Unidentified speaker" }, { "id": "cue-1208", "start": 8893.284, "end": 8900.934, "text": "And there again, there are some suggested topics in the calendar, but up to council to figure out how you all want to schedule those.", "speaker": "Unidentified speaker" }, { "id": "cue-1209", "start": 8903.552, "end": 8906.891, "text": "Oh, sorry, the 5/5 is supposed to be the date.", "speaker": "Unidentified speaker" }, { "id": "cue-1210", "start": 8906.956, "end": 8907.718, "text": "We can remove that.", "speaker": "Unidentified speaker" }, { "id": "cue-1211", "start": 8907.929, "end": 8908.075, "text": "Apologies.", "speaker": "Unidentified speaker" }, { "id": "cue-1212", "start": 8908.208, "end": 8909.369, "text": "Oh, apologies.", "speaker": "Angelita Morillo" }, { "id": "cue-1213", "start": 8909.708, "end": 8925.638, "text": "5/11 Is the budget amendment due date to CBO, and then 5/13— sorry, some last-minute work on the slides here— it would be the public posting date.", "speaker": "Unidentified speaker" }, { "id": "cue-1214", "start": 8925.752, "end": 8928.989, "text": "So essentially, the posting date would be a Thursday.", "speaker": "Unidentified speaker" }, { "id": "cue-1215", "start": 8929.944, "end": 8943.069, "text": "We're asking for 2 days ahead of that to be able to do the to do the work in the background of vetting them, getting legal review when necessary and the like.", "speaker": "Unidentified speaker" }, { "id": "cue-1216", "start": 8943.695, "end": 8948.596, "text": "And then Monday the 17th, the approved budget hearing would begin.", "speaker": "Unidentified speaker" }, { "id": "cue-1217", "start": 8948.917, "end": 8954.043, "text": "And as again scheduled, it would be scheduled for 3 days similar to what it was this year.", "speaker": "Unidentified speaker" }, { "id": "cue-1218", "start": 8954.862, "end": 8960.1, "text": "And then the June calendar is fairly prescriptive.", "speaker": "Unidentified speaker" }, { "id": "cue-1219", "start": 8960.197, "end": 8960.325, "text": "Okay.", "speaker": "Unidentified speaker" }, { "id": "cue-1220", "start": 8960.723, "end": 8965.994, "text": "There's a work session on the 2nd, TSCC hearing on the 8th, adopted budget first reading.", "speaker": "Unidentified speaker" }, { "id": "cue-1221", "start": 8966.99, "end": 8972.936, "text": "Council President added a day there so that it would span 2 days, and then the final vote would be on the 17th.", "speaker": "Unidentified speaker" }, { "id": "cue-1222", "start": 8978.237, "end": 8978.816, "text": "I know that's a lot.", "speaker": "Unidentified speaker" }, { "id": "cue-1223", "start": 8982.616, "end": 8988.378, "text": "Do you want to— we can do quick questions on calendar before we turn to Communications and community engagement if you want to.", "speaker": "Unidentified speaker" }, { "id": "cue-1224", "start": 8989.021, "end": 8989.762, "text": "I think that's a good idea.", "speaker": "Jamie Dunphy" }, { "id": "cue-1225", "start": 8990.019, "end": 8991.451, "text": "All right, so colleagues, anyone in the queue?", "speaker": "Jamie Dunphy" }, { "id": "cue-1226", "start": 8991.532, "end": 8995.251, "text": "We're going to have, uh, questions about this section specific to the calendar.", "speaker": "Jamie Dunphy" }, { "id": "cue-1227", "start": 8995.38, "end": 8996.416, "text": "Start with Councilor Connell.", "speaker": "Jamie Dunphy" }, { "id": "cue-1228", "start": 8997.08, "end": 8998.261, "text": "Uh, Council President, thank you.", "speaker": "Sameer Kanal" }, { "id": "cue-1229", "start": 8998.374, "end": 9003.699, "text": "I had a question on the slide that actually was the queue up for it as well, and I think it's the same question.", "speaker": "Sameer Kanal" }, { "id": "cue-1230", "start": 9005.748, "end": 9008.533, "text": "Um, can you go back 2 more slides, please?", "speaker": "Sameer Kanal" }, { "id": "cue-1231", "start": 9011.53, "end": 9015.725, "text": "Yeah, so this— it went 2 questions.", "speaker": "Sameer Kanal" }, { "id": "cue-1232", "start": 9015.854, "end": 9022.76, "text": "First, can you explain what the CA budget report is as differentiated from what we got 2 years ago or a year and a half ago?", "speaker": "Sameer Kanal" }, { "id": "cue-1233", "start": 9024.93, "end": 9026.327, "text": "That hasn't been defined yet.", "speaker": "Raymond C. Lee" }, { "id": "cue-1234", "start": 9026.488, "end": 9030.023, "text": "We're still going through the process to define what that CA report will look like.", "speaker": "Raymond C. Lee" }, { "id": "cue-1235", "start": 9030.441, "end": 9032.529, "text": "Okay, well, first, thank you for including it.", "speaker": "Sameer Kanal" }, { "id": "cue-1236", "start": 9032.979, "end": 9040.569, "text": "Um, I think after it happened the first time, it was probably 1 to 11 up here whether it was a good idea, but I was the one So I'm very grateful.", "speaker": "Sameer Kanal" }, { "id": "cue-1237", "start": 9041.42, "end": 9052.322, "text": "So, you know, I think it gave us a lot of additional information from previous CA Jordan, and I think it really also set us up for success.", "speaker": "Sameer Kanal" }, { "id": "cue-1238", "start": 9052.418, "end": 9060.88, "text": "I think combining that with the, again, replicating the earlier release date of the mayor's budget, which I'm very grateful for the mayor's proposal to do, is great.", "speaker": "Sameer Kanal" }, { "id": "cue-1239", "start": 9061.956, "end": 9064.413, "text": "Have thoughts on what should be in it, happy to follow up in an email or something.", "speaker": "Sameer Kanal" }, { "id": "cue-1240", "start": 9064.461, "end": 9064.605, "text": "Thank you.", "speaker": "Sameer Kanal" }, { "id": "cue-1241", "start": 9065.828, "end": 9073.456, "text": "On this slide it says budget engagement and it says conducting earlier engagement, and then 2 slides later up at the top it says mayor-led engagement.", "speaker": "Sameer Kanal" }, { "id": "cue-1242", "start": 9074.466, "end": 9076.625, "text": "And I just wanted to— is that going to be in the next section?", "speaker": "Sameer Kanal" }, { "id": "cue-1243", "start": 9076.673, "end": 9077.495, "text": "Are we digging into that?", "speaker": "Sameer Kanal" }, { "id": "cue-1244", "start": 9077.704, "end": 9077.898, "text": "Yes.", "speaker": "Unidentified speaker" }, { "id": "cue-1245", "start": 9078.107, "end": 9078.768, "text": "Okay.", "speaker": "Sameer Kanal" }, { "id": "cue-1246", "start": 9079.622, "end": 9086.319, "text": "And what is the timeline on having a permanent chief city engagement officer?", "speaker": "Sameer Kanal" }, { "id": "cue-1247", "start": 9089.35, "end": 9095.178, "text": "As we concluded kind of this last presentation with council to better define what that role is.", "speaker": "Raymond C. Lee" }, { "id": "cue-1248", "start": 9095.355, "end": 9105.942, "text": "I'll be sitting down with the team to kind of really clarify how we move forward in really developing a profile for the next recruitment that we'll do for this role.", "speaker": "Raymond C. Lee" }, { "id": "cue-1249", "start": 9106.456, "end": 9111.765, "text": "I'm anticipating this role not to come on probably until the new year.", "speaker": "Raymond C. Lee" }, { "id": "cue-1250", "start": 9112.519, "end": 9128.778, "text": "I would want to keep the work that we're doing right now and the work that Laura's doing as we get right hot and heavy with the actual budget work from an engagement standpoint so we can keep that continuity going forward, but having that process start sometime in the new year.", "speaker": "Raymond C. Lee" }, { "id": "cue-1251", "start": 9128.987, "end": 9130.078, "text": "That's new calendar year?", "speaker": "Sameer Kanal" }, { "id": "cue-1252", "start": 9130.415, "end": 9130.833, "text": "Correct.", "speaker": "Raymond C. Lee" }, { "id": "cue-1253", "start": 9131.331, "end": 9131.893, "text": "Okay, thanks.", "speaker": "Sameer Kanal" }, { "id": "cue-1254", "start": 9132.278, "end": 9144.945, "text": "2 years ago, as chair of the then Finance Committee, Councilor Zimmerman had come up with a plan to do engagement that had to be adapted with a new citywide engagement officer coming on at the same time.", "speaker": "Sameer Kanal" }, { "id": "cue-1255", "start": 9145.522, "end": 9161.064, "text": "So I'm hoping that we can be— don't slow it down, it's good, you know— but, uh, I'm hoping that we can be in communication with everybody who's relevant to this, which obviously may change, uh, in the new year from which councilors, in a way that allows us to be involved.", "speaker": "Sameer Kanal" }, { "id": "cue-1256", "start": 9161.289, "end": 9165.086, "text": "And the way in which we'll be involved, I'm sure we'll talk about in the next slide, so I can, I can leave it there.", "speaker": "Sameer Kanal" }, { "id": "cue-1257", "start": 9165.15, "end": 9174.85, "text": "But, um, I'm, I'm very interested in this and ensuring that there's sort of continuity not only within the administration but in terms of planning for this specific budget engagement process.", "speaker": "Sameer Kanal" }, { "id": "cue-1258", "start": 9176.055, "end": 9176.826, "text": "Thank you, Councilor Knell.", "speaker": "Jamie Dunphy" }, { "id": "cue-1259", "start": 9177.099, "end": 9177.629, "text": "Councilor Ryan.", "speaker": "Jamie Dunphy" }, { "id": "cue-1260", "start": 9178.047, "end": 9179.574, "text": "Yeah, thank you, Council President.", "speaker": "Dan Ryan" }, { "id": "cue-1261", "start": 9179.67, "end": 9181.341, "text": "It's good to keep the process changes up.", "speaker": "Dan Ryan" }, { "id": "cue-1262", "start": 9181.662, "end": 9184.127, "text": "I think I put my hand up during that section as well.", "speaker": "Dan Ryan" }, { "id": "cue-1263", "start": 9184.82, "end": 9191.328, "text": "I wanted to actually say thank you for including the FTE data and also performance measures.", "speaker": "Dan Ryan" }, { "id": "cue-1264", "start": 9192.338, "end": 9209.941, "text": "Our conversation earlier, was it earlier this morning, about performance measures and KPIs, So I'm happy to see that, but based on our conversation this morning, is that going to be a discipline that's realistic throughout the enterprise?", "speaker": "Dan Ryan" }, { "id": "cue-1265", "start": 9211.996, "end": 9222.735, "text": "Or is it— I know when I had the opportunity to be over BDS, was permitting BDS, that culture was pretty aligned with having performance metrics.", "speaker": "Dan Ryan" }, { "id": "cue-1266", "start": 9223.142, "end": 9226.38, "text": "But the other bureaus that I had an opportunity to oversee did not.", "speaker": "Dan Ryan" }, { "id": "cue-1267", "start": 9226.813, "end": 9232.829, "text": "So is this something where we're moving forward and trying to get some symmetry across the city?", "speaker": "Dan Ryan" }, { "id": "cue-1268", "start": 9233.599, "end": 9234.177, "text": "Absolutely.", "speaker": "Raymond C. Lee" }, { "id": "cue-1269", "start": 9234.899, "end": 9235.3, "text": "Okay.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1270", "start": 9235.541, "end": 9238.172, "text": "And your goal is for that to be included this year?", "speaker": "Dan Ryan" }, { "id": "cue-1271", "start": 9238.99, "end": 9239.182, "text": "Yes.", "speaker": "Raymond C. Lee" }, { "id": "cue-1272", "start": 9239.295, "end": 9243.851, "text": "I know this is going to be a work in progress, and we're a continuous improvement organization.", "speaker": "Raymond C. Lee" }, { "id": "cue-1273", "start": 9243.947, "end": 9249.466, "text": "So we know we're going to keep getting better with each iteration of this and each cycle of it.", "speaker": "Raymond C. Lee" }, { "id": "cue-1274", "start": 9249.803, "end": 9250.605, "text": "But we have to start now.", "speaker": "Raymond C. Lee" }, { "id": "cue-1275", "start": 9250.67, "end": 9250.798, "text": "Yeah.", "speaker": "Raymond C. Lee" }, { "id": "cue-1276", "start": 9251.248, "end": 9251.89, "text": "I love that answer.", "speaker": "Dan Ryan" }, { "id": "cue-1277", "start": 9252.211, "end": 9255.31, "text": "There's no such thing as best practice in my opinion.", "speaker": "Dan Ryan" }, { "id": "cue-1278", "start": 9255.358, "end": 9257.012, "text": "They're just better and they keep improving.", "speaker": "Dan Ryan" }, { "id": "cue-1279", "start": 9257.461, "end": 9268.251, "text": "So also when I looked at the calendar, I recall everyone having some challenges with the release of the mayor's budget and then when the amendments were due.", "speaker": "Dan Ryan" }, { "id": "cue-1280", "start": 9269.327, "end": 9272.57, "text": "It still seems tight for me, but was it tighter last year than this?", "speaker": "Dan Ryan" }, { "id": "cue-1281", "start": 9273.036, "end": 9273.309, "text": "It was.", "speaker": "Raymond C. Lee" }, { "id": "cue-1282", "start": 9274.545, "end": 9275.075, "text": "No wonder.", "speaker": "Jonas Biery" }, { "id": "cue-1283", "start": 9276.713, "end": 9277.853, "text": "But how much tighter?", "speaker": "Dan Ryan" }, { "id": "cue-1284", "start": 9277.997, "end": 9281.547, "text": "'Cause was it just like, was it 6 days or 7?", "speaker": "Dan Ryan" }, { "id": "cue-1285", "start": 9281.611, "end": 9282.302, "text": "Like now it's 10.", "speaker": "Dan Ryan" }, { "id": "cue-1286", "start": 9283.763, "end": 9285.321, "text": "It is loosely better.", "speaker": "Jonas Biery" }, { "id": "cue-1287", "start": 9285.562, "end": 9287.49, "text": "It's not dramatically better this year.", "speaker": "Dan Ryan" }, { "id": "cue-1288", "start": 9287.875, "end": 9288.212, "text": "Okay.", "speaker": "Dan Ryan" }, { "id": "cue-1289", "start": 9288.341, "end": 9288.646, "text": "But it is.", "speaker": "Raymond C. Lee" }, { "id": "cue-1290", "start": 9289.24, "end": 9294.139, "text": "And I'll tell you that this is something that I think will require some iteration and some dedication from this council.", "speaker": "Jamie Dunphy" }, { "id": "cue-1291", "start": 9294.605, "end": 9298.668, "text": "I also encourage all of our colleagues to file their amendments as soon as physically possible.", "speaker": "Jamie Dunphy" }, { "id": "cue-1292", "start": 9298.716, "end": 9301.013, "text": "But yes, it does.", "speaker": "Jamie Dunphy" }, { "id": "cue-1293", "start": 9301.608, "end": 9305.189, "text": "Yeah, and Council President, if I can add some context.", "speaker": "Jonas Biery" }, { "id": "cue-1294", "start": 9305.398, "end": 9311.9, "text": "I have a moment of clarity because this was such an item last year and I just can't tell if this is much of an improvement.", "speaker": "Dan Ryan" }, { "id": "cue-1295", "start": 9311.948, "end": 9316.701, "text": "Yeah, so it is, I think, maybe a couple business day improvement, which is not a lot.", "speaker": "Jonas Biery" }, { "id": "cue-1296", "start": 9316.942, "end": 9318.097, "text": "Still too little.", "speaker": "Jonas Biery" }, { "id": "cue-1297", "start": 9318.547, "end": 9323.123, "text": "But I think I just wanted to put it also in the broader context of all of the improvements.", "speaker": "Jonas Biery" }, { "id": "cue-1298", "start": 9323.347, "end": 9333.844, "text": "And we talked about some of this on September 10th that, you know, I think we've had an unintentional kind of habit over the last couple years of kind of looking at everything at the last second.", "speaker": "Jonas Biery" }, { "id": "cue-1299", "start": 9334.196, "end": 9357.936, "text": "And so there's a lot of these improvements are around getting some of that base information to you all and to the community earlier and in a more robust form so that both the mayor's proposed is better, better reflective of that input, better reflective perhaps of your input, is clearer and easier to interpret, and makes it easier for you all to develop those amendments.", "speaker": "Jonas Biery" }, { "id": "cue-1300", "start": 9357.984, "end": 9358.224, "text": "So it doesn't—.", "speaker": "Jonas Biery" }, { "id": "cue-1301", "start": 9358.256, "end": 9358.769, "text": "I think that's a great point.", "speaker": "Jonas Biery" }, { "id": "cue-1302", "start": 9359.138, "end": 9361.719, "text": "Solve that timing challenge because we do have that.", "speaker": "Jonas Biery" }, { "id": "cue-1303", "start": 9362.152, "end": 9378.298, "text": "But a major objective of all of this process change is to pull a lot of that all forward so that we can get both recognizing we're always going to have a limited timeframe, but what we can improve is the quality of information getting into that to make that shorter timeframe easier to manage.", "speaker": "Jonas Biery" }, { "id": "cue-1304", "start": 9378.362, "end": 9384.053, "text": "It'll never be fun or easy, but at least better, to use your terminology, and maybe a little easier.", "speaker": "Jonas Biery" }, { "id": "cue-1305", "start": 9384.214, "end": 9392.756, "text": "Well, I think the more transparent we are leading up to the mayor's proposed budget about what our interests are, that will help.", "speaker": "Dan Ryan" }, { "id": "cue-1306", "start": 9394.21, "end": 9403.193, "text": "I think that some of us wait to see if our lobbying efforts paid off and we've got to see what we wanted.", "speaker": "Dan Ryan" }, { "id": "cue-1307", "start": 9404.656, "end": 9410.679, "text": "But I also think it's interesting to have everything pre-baked before the mayor releases his budget.", "speaker": "Dan Ryan" }, { "id": "cue-1308", "start": 9410.793, "end": 9413.494, "text": "So it's just a— it's an art form.", "speaker": "Dan Ryan" }, { "id": "cue-1309", "start": 9414.298, "end": 9415.052, "text": "Yeah, thanks.", "speaker": "Dan Ryan" }, { "id": "cue-1310", "start": 9416.401, "end": 9417.172, "text": "Thank you, Councilor Ryan.", "speaker": "Jamie Dunphy" }, { "id": "cue-1311", "start": 9417.348, "end": 9417.814, "text": "Councilor Green.", "speaker": "Jamie Dunphy" }, { "id": "cue-1312", "start": 9418.906, "end": 9419.211, "text": "Thank you.", "speaker": "Mitch Green" }, { "id": "cue-1313", "start": 9419.291, "end": 9425.248, "text": "There was an earlier slide that had the timelines that I didn't necessarily see in the same format posted.", "speaker": "Mitch Green" }, { "id": "cue-1314", "start": 9425.312, "end": 9430.723, "text": "Can you go back to the City Administrator's report slide?", "speaker": "Mitch Green" }, { "id": "cue-1315", "start": 9431.558, "end": 9431.863, "text": "This one?", "speaker": "Mitch Green" }, { "id": "cue-1316", "start": 9432.136, "end": 9432.714, "text": "Yeah, perfect.", "speaker": "Mitch Green" }, { "id": "cue-1317", "start": 9432.939, "end": 9433.887, "text": "I wanted to verify the date.", "speaker": "Mitch Green" }, { "id": "cue-1318", "start": 9434.545, "end": 9443.57, "text": "So for the February 19th report, do we anticipate I hope so.", "speaker": "Mitch Green" }, { "id": "cue-1319", "start": 9446.47, "end": 9448.97, "text": "That's the initial plan to have it within that report.", "speaker": "Raymond C. Lee" }, { "id": "cue-1320", "start": 9448.97, "end": 9458.76, "text": "Okay, I think that'd be really helpful because I think we've talked, you know, multiple times over the summer to be like, we, we definitely want to know what, what actions could happen in that next budget.", "speaker": "Mitch Green" }, { "id": "cue-1321", "start": 9459.35, "end": 9460.35, "text": "Thanks.", "speaker": "Sameer Kanal" }, { "id": "cue-1322", "start": 9460.35, "end": 9461.55, "text": "Thank you, Councilor Green.", "speaker": "Jamie Dunphy" }, { "id": "cue-1323", "start": 9461.55, "end": 9462.73, "text": "Councilor Pirtle-Guiney.", "speaker": "Jamie Dunphy" }, { "id": "cue-1324", "start": 9462.73, "end": 9463.66, "text": "Thank you, Council President.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1325", "start": 9463.77, "end": 9464.95, "text": "A question and a comment.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1326", "start": 9465.616, "end": 9472.65, "text": "Last year during that amendment process, council was able to work with Ruth, one of your analysts, which was incredibly helpful.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1327", "start": 9472.778, "end": 9475.934, "text": "We learned today that he is now in a different position at the city.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1328", "start": 9476.046, "end": 9478.209, "text": "I think all of our offices are mourning that.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1329", "start": 9479.01, "end": 9484.874, "text": "Will we have somebody on your team who we are able to work with through this process in that same very hands-on detailed way?", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1330", "start": 9485.563, "end": 9491.139, "text": "Yes, we're— and I'm actually coming to the heads of staff meeting next week to discuss it.", "speaker": "Unidentified speaker" }, { "id": "cue-1331", "start": 9491.411, "end": 9500.932, "text": "I'm also mourning, but We are planning to fill that position, and I'll talk to your offices about collaborating on that process.", "speaker": "Unidentified speaker" }, { "id": "cue-1332", "start": 9501.365, "end": 9502.086, "text": "Great, thank you.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1333", "start": 9502.31, "end": 9515.135, "text": "And just a note on this council— on this calendar, Council President, on the next page in April, the Jewish holiday of Passover begins on, I believe, April 21st.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1334", "start": 9515.215, "end": 9520.425, "text": "You have on here that we are going to have a hearing on the mayor's budget on April 22nd.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1335", "start": 9521.075, "end": 9524.508, "text": "The first and second nights of that holiday are major celebrations.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1336", "start": 9525.088, "end": 9531.244, "text": "I, for one, will likely be remote that day because I usually have 25 people at my house for the second night of Passover.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1337", "start": 9532.258, "end": 9541.132, "text": "If we have Jewish members of our community, either councilors, staff, or members of the public who are expecting to be a part of this, those 2 days are not great.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1338", "start": 9542.748, "end": 9543.169, "text": "Good flag.", "speaker": "Jamie Dunphy" }, { "id": "cue-1339", "start": 9543.493, "end": 9543.8, "text": "Thank you.", "speaker": "Jamie Dunphy" }, { "id": "cue-1340", "start": 9544.464, "end": 9545.76, "text": "We'll take a look at that.", "speaker": "Jamie Dunphy" }, { "id": "cue-1341", "start": 9546.677, "end": 9547.623, "text": "Thank you, Councilor Pirtle-Guiney.", "speaker": "Jamie Dunphy" }, { "id": "cue-1342", "start": 9548.536, "end": 9549.418, "text": "Councilor Kanal.", "speaker": "Jamie Dunphy" }, { "id": "cue-1343", "start": 9550.781, "end": 9551.903, "text": "Thank you, Council President.", "speaker": "Sameer Kanal" }, { "id": "cue-1344", "start": 9552.047, "end": 9557.883, "text": "Um, I wanted to just follow up a little bit, if you can go to the next slide please, uh, on Councilor Ryan's questions.", "speaker": "Sameer Kanal" }, { "id": "cue-1345", "start": 9557.931, "end": 9573.994, "text": "So, uh, I, I think having, um, whoop, this is— maybe I'm wrong on the slide I just saw, but, um, the idea of having, uh, 6 days, right, um, was Am I looking at the same slide we were looking at before?", "speaker": "Sameer Kanal" }, { "id": "cue-1346", "start": 9574.202, "end": 9574.411, "text": "Sorry.", "speaker": "Dan Ryan" }, { "id": "cue-1347", "start": 9574.459, "end": 9579.123, "text": "Sorry, I removed the 5/5 date because it was incorrectly labeled and I thought it was confusing.", "speaker": "Unidentified speaker" }, { "id": "cue-1348", "start": 9579.38, "end": 9579.877, "text": "Okay, okay.", "speaker": "Jamie Dunphy" }, { "id": "cue-1349", "start": 9580.101, "end": 9580.422, "text": "Sorry.", "speaker": "Angelita Morillo" }, { "id": "cue-1350", "start": 9580.662, "end": 9588.341, "text": "Yeah, so, but what I think is, I appreciate that actually because it does show that we have from the 20th to the 11th, right?", "speaker": "Sameer Kanal" }, { "id": "cue-1351", "start": 9588.421, "end": 9588.629, "text": "Correct.", "speaker": "Sameer Kanal" }, { "id": "cue-1352", "start": 9588.693, "end": 9589.431, "text": "Which is significant.", "speaker": "Sameer Kanal" }, { "id": "cue-1353", "start": 9589.479, "end": 9590.088, "text": "Yes, yes, yes.", "speaker": "Unidentified speaker" }, { "id": "cue-1354", "start": 9590.44, "end": 9591.354, "text": "I think the—.", "speaker": "Sameer Kanal" }, { "id": "cue-1355", "start": 9592.316, "end": 9593.358, "text": "Sorry.", "speaker": "Sameer Kanal" }, { "id": "cue-1356", "start": 9593.582, "end": 9603.424, "text": "Which is a— and I'm not sure whether, Councilor Ryan, you meant last year as in last budget year as in A couple— 4 or 5 months ago versus last year's calendar year.", "speaker": "Sameer Kanal" }, { "id": "cue-1357", "start": 9603.812, "end": 9604.038, "text": "So—.", "speaker": "Sameer Kanal" }, { "id": "cue-1358", "start": 9604.183, "end": 9606.702, "text": "Sorry, of course I was talking about the budget calendar.", "speaker": "Dan Ryan" }, { "id": "cue-1359", "start": 9606.961, "end": 9615.93, "text": "So obviously both what we did 4 or 5 months ago and this are, uh, by schedule much better than a year and a half ago or whatever.", "speaker": "Sameer Kanal" }, { "id": "cue-1360", "start": 9616.3, "end": 9629.736, "text": "Um, I did want to mention the— that, and I, I don't mean to do this in a, in a negative way, the, the budget changed that we were amending after its initial release this year, the proposal.", "speaker": "Sameer Kanal" }, { "id": "cue-1361", "start": 9630.121, "end": 9636.739, "text": "So I think that we are guaranteed 6 days by virtue of the charter, meaning you can't change it after the 5th.", "speaker": "Sameer Kanal" }, { "id": "cue-1362", "start": 9637.125, "end": 9642.409, "text": "But I, I think if we're able to, to have that be locked, then it is actually a huge improvement.", "speaker": "Sameer Kanal" }, { "id": "cue-1363", "start": 9642.682, "end": 9647.581, "text": "I think that that's a variable I wanted to acknowledge that, um, hopefully is being improved upon.", "speaker": "Sameer Kanal" }, { "id": "cue-1364", "start": 9647.646, "end": 9652.978, "text": "And I, I think is a, you know, there's a trade-off there, obviously, but I, I, and I, I don't mistakes happen.", "speaker": "Sameer Kanal" }, { "id": "cue-1365", "start": 9653.026, "end": 9654.472, "text": "I'm not trying to fault anyone.", "speaker": "Sameer Kanal" }, { "id": "cue-1366", "start": 9654.857, "end": 9660.558, "text": "Also, since he's in the back of the room, I just also wanted to pile on with the thanks and mourning related to Owen moving over.", "speaker": "Sameer Kanal" }, { "id": "cue-1367", "start": 9660.638, "end": 9666.355, "text": "But I know that PSSA needs good folks as well, and happy that they're going to have another good person over there.", "speaker": "Sameer Kanal" }, { "id": "cue-1368", "start": 9666.837, "end": 9667.078, "text": "Yeah.", "speaker": "Unidentified speaker" }, { "id": "cue-1369", "start": 9667.319, "end": 9672.506, "text": "And thank you for mentioning the thing about the sort of budget accuracy.", "speaker": "Unidentified speaker" }, { "id": "cue-1370", "start": 9673.1, "end": 9681.37, "text": "We are also making changes that I didn't highlight on that previous slide to lengthen the time for QA/QC prior to the mayor's proposed release.", "speaker": "Unidentified speaker" }, { "id": "cue-1371", "start": 9681.613, "end": 9696.36, "text": "And so we're building that into the full calendar so that we can be more confident in the numbers once they've been released on the 20th and not have those changes that were confusing and difficult for folks to navigate.", "speaker": "Unidentified speaker" }, { "id": "cue-1372", "start": 9696.994, "end": 9697.478, "text": "So great.", "speaker": "Sameer Kanal" }, { "id": "cue-1373", "start": 9698.397, "end": 9702.316, "text": "Question for Council President, is this the last section for Q&A, or are there—.", "speaker": "Sameer Kanal" }, { "id": "cue-1374", "start": 9704.042, "end": 9710.641, "text": "We have one more Section after this that is going to be focused on engagement.", "speaker": "Jamie Dunphy" }, { "id": "cue-1375", "start": 9710.916, "end": 9712.225, "text": "Yeah, engagement side of things still.", "speaker": "Jamie Dunphy" }, { "id": "cue-1376", "start": 9712.435, "end": 9712.678, "text": "Got it.", "speaker": "Raymond C. Lee" }, { "id": "cue-1377", "start": 9712.775, "end": 9716.105, "text": "Okay, I have questions that are not in the slides, so I'll save them for the last part.", "speaker": "Sameer Kanal" }, { "id": "cue-1378", "start": 9716.251, "end": 9716.445, "text": "Great.", "speaker": "Jamie Dunphy" }, { "id": "cue-1379", "start": 9716.639, "end": 9716.897, "text": "Thanks.", "speaker": "Elana Pirtle-Guiney" }, { "id": "cue-1380", "start": 9717.204, "end": 9718.368, "text": "Thank you very much, Councilor Kanal.", "speaker": "Jamie Dunphy" }, { "id": "cue-1381", "start": 9718.433, "end": 9719.047, "text": "Councilor Ryan.", "speaker": "Jamie Dunphy" }, { "id": "cue-1382", "start": 9720.356, "end": 9725.096, "text": "I can wait, but I'm just going to say like 21 days is a lot different than 11, so I'm glad we caught that.", "speaker": "Dan Ryan" }, { "id": "cue-1383", "start": 9725.632, "end": 9727.417, "text": "Yeah, thanks.", "speaker": "Dan Ryan" }, { "id": "cue-1384", "start": 9728.537, "end": 9729.008, "text": "Thank you very much.", "speaker": "Jamie Dunphy" }, { "id": "cue-1385", "start": 9729.203, "end": 9731.135, "text": "Okay, let's move on to the last section.", "speaker": "Jamie Dunphy" }, { "id": "cue-1386", "start": 9735.644, "end": 9737.621, "text": "Good afternoon, everyone.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1387", "start": 9738.376, "end": 9741.027, "text": "Uh, for the record, my name is Laura Oppenheimer.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1388", "start": 9741.124, "end": 9746.201, "text": "I'm the city's Chief Communications Officer and Interim Chief Engagement Officer.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1389", "start": 9746.812, "end": 9754.444, "text": "I'm just going to briefly walk through a draft framework that shows an integrated plan for communications and engagement on the budget.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1390", "start": 9755.006, "end": 9756.436, "text": "Go ahead and next slide, please.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1391", "start": 9756.549, "end": 9757.031, "text": "Thank you.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1392", "start": 9757.16, "end": 9758.523, "text": "Thank you.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1393", "start": 9759.181, "end": 9762.117, "text": "I think and hope this will feel very familiar.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1394", "start": 9762.422, "end": 9772.353, "text": "It is responsive to what we heard from all of you during the budget process work session recently, as well as much of what we discussed during the Civic Life work session last week.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1395", "start": 9773.636, "end": 9781.578, "text": "This first slide, I'm just going to walk through our commitments and philosophy around budget engagement, and then we'll walk through a proposed calendar.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1396", "start": 9782.364, "end": 9788.222, "text": "First, we're committed to providing clear, accessible information on the challenges priorities and trade-offs.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1397", "start": 9789.057, "end": 9796.158, "text": "Secondly, and this is really key, you will see that each phase of engagement aligns with the budget milestones.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1398", "start": 9796.271, "end": 9807.003, "text": "We need to be absolutely certain that we're providing a clear purpose to each phase and that the feedback that we're requesting from community and employees is meaningful and can inform decision-making.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1399", "start": 9808.159, "end": 9812.77, "text": "Third, this is a lot of what we talked about in the Civic Life work session.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1400", "start": 9812.818, "end": 9815.078, "text": "We don't need to treat Thank you.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1401", "start": 9816.049, "end": 9821.439, "text": "We have a lot of great engagement practices and systems in place at the city, and we should leverage those.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1402", "start": 9822.17, "end": 9833.357, "text": "You'll see that the plan will include the Portland Insights survey, tapping into our community partnerships, the neighborhood system, the New Portlanders Policy Commission, and the Multnomah Youth Commission.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1403", "start": 9835.002, "end": 9840.136, "text": "We've heard a lot from you and from our employees that it would be really helpful to have some employee engagement.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1404", "start": 9840.702, "end": 9846.578, "text": "Of course, they are Portlanders, still welcome out at community events as well, but they have unique perspectives.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1405", "start": 9847.89, "end": 9852.198, "text": "So providing some tailored feedback opportunities is something we'd like to build in this year.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1406", "start": 9854.124, "end": 9867.015, "text": "We want to make sure that we circle back and close the feedback loop and let community members know how the input that we received from them influenced the budget and the decision-making process.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1407", "start": 9867.079, "end": 9867.176, "text": "Thank you.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1408", "start": 9868.46, "end": 9881.293, "text": "And then I have a feeling we're all on the same page with this one, that by planning an engagement program now, we can really improve clarity for everyone in this room, for the community, for our employees.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1409", "start": 9882.112, "end": 9888.425, "text": "And it will also allow us to maximize participation by planning this in advance and not having last-minute planning.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1410", "start": 9888.89, "end": 9892.215, "text": "So let's move on to what we're proposing.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1411", "start": 9893.211, "end": 9900.901, "text": "You will see that each phase does have a very explicit purpose and a format and a timing that aligns with the budget cycle.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1412", "start": 9901.639, "end": 9913.001, "text": "First, we want to focus on raising understanding and really kind of seeding that public conversation about the financial challenges, the economic trends, and the potential solutions on the table.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1413", "start": 9913.515, "end": 9934.666, "text": "That's more communications-focused, but is an opportunity to preview the engagement that will be available in 2027, which will be the reason for that timing, the week of December 7th, is to align with the economic forecast that we do have more information and can have a meaningful conversation there.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1414", "start": 9936.272, "end": 9940.915, "text": "Then in January, we'll be ready to roll out the results of the Portland Insights Survey.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1415", "start": 9941.028, "end": 9946.533, "text": "It will be— it comes out every other year, so it will be the first one that this council has received.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1416", "start": 9947.678, "end": 9951.128, "text": "And I really do want to emphasize, I think this has been an underutilized tool.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1417", "start": 9951.241, "end": 9951.305, "text": "Yes.", "speaker": "Raymond C. Lee" }, { "id": "cue-1418", "start": 9951.38, "end": 9951.476, "text": "Yes.", "speaker": "Angelita Morillo" }, { "id": "cue-1419", "start": 9951.652, "end": 9966.786, "text": "It's a really robust representative survey of our community, including targeted outreach toward communities who historically have been underrepresented to ensure that we can get results across districts, across demographic groups.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1420", "start": 9967.266, "end": 9976.789, "text": "And it asks them about their priorities for city spending, about their satisfaction with city services, about the biggest problems they see in their communities.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1421", "start": 9976.981, "end": 9984.804, "text": "So we will roll that out in partnership with our survey partners at Portland State University in January.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1422", "start": 9985.638, "end": 9991.936, "text": "The survey is just closing right now, and that should be really relevant to helping shape the rest of the budget engagement.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1423", "start": 9993.155, "end": 9998.492, "text": "Then utilizing that and building upon it, we would move into the values and priorities phase.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1424", "start": 9998.54, "end": 10001.826, "text": "This is before specific budget proposals are on the table.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1425", "start": 10002.29, "end": 10011.668, "text": "We're hoping that we can utilize what we've heard from that representative survey to pick themes and priorities that we would engage people more deeply in, in qualitative feedback.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1426", "start": 10012.247, "end": 10015.812, "text": "That's timed for following that City Administrator report.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1427", "start": 10016.326, "end": 10022.494, "text": "Again, want to ensure that we are sharing as much information as possible to inform the feedback that we're getting.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1428", "start": 10023.811, "end": 10027.457, "text": "I know there were questions around, is that the mayor's engagement?", "speaker": "Laura Oppenheimer" }, { "id": "cue-1429", "start": 10027.505, "end": 10029.031, "text": "Is that the council's engagement?", "speaker": "Laura Oppenheimer" }, { "id": "cue-1430", "start": 10029.175, "end": 10040.32, "text": "While a core purpose is to inform the mayor's proposed budget, I think everyone around this dais has an interest in the values and priorities and having those thank you.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1431", "start": 10040.32, "end": 10040.32, "text": "I think that's really important.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1432", "start": 10040.32, "end": 10044.82, "text": "We know that public comment is something that continues to shape the decisions made around the budget.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1433", "start": 10044.82, "end": 10060.46, "text": "So I think we can show up as a city and we're proposing to do those as in-district open houses as well as a digital component for those who prefer to participate that way and then employee-focused opportunities as well.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1434", "start": 10060.46, "end": 10069.82, "text": "We do wanna make sure that that occurs by early March to provide time for a feedback report that the mayor can really thoroughly consider in advance of decision-making around the proposed budget.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1435", "start": 10070.652, "end": 10071.118, "text": "Thank you.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1436", "start": 10071.856, "end": 10073.783, "text": "Then you see that date of April 21st.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1437", "start": 10073.927, "end": 10076.32, "text": "Thank you for the note around the holidays.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1438", "start": 10076.898, "end": 10081.008, "text": "We will certainly look at that in terms of the timing of these aspects.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1439", "start": 10082.036, "end": 10094.062, "text": "It's really more of a communications touchpoint and rolling out that proposed budget, but we're committed to doing so in a way that helps break it down and clearly explain the choices and trade-offs for community members and for employees.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1440", "start": 10095.235, "end": 10095.989, "text": "That is a really tight timeline.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1441", "start": 10096.07, "end": 10105.046, "text": "Great timeline then to conduct the next phase of engagement after the proposed budget is out, but before you all have to move into decision-making.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1442", "start": 10105.719, "end": 10110.656, "text": "You'll see we've proposed to do that in late April into early March.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1443", "start": 10110.768, "end": 10119.535, "text": "That's a piece where I think we'd really want Council to shape what that engagement looks like, to work closely with the Council Operations team and your new outreach coordinator there.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1444", "start": 10120.786, "end": 10128.889, "text": "Civic Life is here and ready to show up and support and kind kind of co-lead that engagement, but believe it, you know, ought to be council-owned.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1445", "start": 10130.24, "end": 10132.97, "text": "So that's the process we're mapping out.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1446", "start": 10133.019, "end": 10141.476, "text": "And to that point about leadership transition, at whatever point we're at in onboarding the new Chief Engagement Officer, I'm not going far.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1447", "start": 10142.023, "end": 10145.145, "text": "You know, we're gonna make sure that we have continuity through the process.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1448", "start": 10148.858, "end": 10149.657, "text": "Thank you very much.", "speaker": "Jamie Dunphy" }, { "id": "cue-1449", "start": 10150.053, "end": 10150.987, "text": "Thank you.", "speaker": "Jamie Dunphy" }, { "id": "cue-1450", "start": 10151.26, "end": 10155.688, "text": "Colleagues, any questions, comments, concerns, short stories, or interpretive dance?", "speaker": "Jamie Dunphy" }, { "id": "cue-1451", "start": 10155.833, "end": 10156.381, "text": "Councilor Ryan.", "speaker": "Jamie Dunphy" }, { "id": "cue-1452", "start": 10158.651, "end": 10159.521, "text": "Tempted on the last one.", "speaker": "Dan Ryan" }, { "id": "cue-1453", "start": 10159.716, "end": 10159.942, "text": "Yeah.", "speaker": "Dan Ryan" }, { "id": "cue-1454", "start": 10160.104, "end": 10161.659, "text": "Um, thank you, Council President.", "speaker": "Dan Ryan" }, { "id": "cue-1455", "start": 10162.209, "end": 10172.957, "text": "When you talk about the values and priorities, the late February, early March, did you make it clear would be both council— well, actually council, CA, and the mayor?", "speaker": "Dan Ryan" }, { "id": "cue-1456", "start": 10173.764, "end": 10174.872, "text": "Yes, that is the intent.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1457", "start": 10174.924, "end": 10178.979, "text": "We would do one per District and go out, and councilors would be welcome to join.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1458", "start": 10179.107, "end": 10185.279, "text": "I know the mayor is really interested in making sure he's getting feedback from across the city to inform the proposed budget.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1459", "start": 10186.642, "end": 10191.836, "text": "But yes, absolutely, I think it's an opportunity for councilors to also participate alongside him.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1460", "start": 10192.156, "end": 10194.545, "text": "I think it worked out really well when we were all there together.", "speaker": "Dan Ryan" }, { "id": "cue-1461", "start": 10196.004, "end": 10198.2, "text": "I also have a question about economic forecast.", "speaker": "Dan Ryan" }, { "id": "cue-1462", "start": 10198.248, "end": 10199.402, "text": "I know there's one in December.", "speaker": "Dan Ryan" }, { "id": "cue-1463", "start": 10199.531, "end": 10201.935, "text": "Isn't there one in late April, early May?", "speaker": "Dan Ryan" }, { "id": "cue-1464", "start": 10203.233, "end": 10210.075, "text": "And did that always kind of— is that the reason why the mayor's proposed would come out after you had a chance to digest that?", "speaker": "Dan Ryan" }, { "id": "cue-1465", "start": 10211.565, "end": 10212.734, "text": "Historically, yes.", "speaker": "Unidentified speaker" }, { "id": "cue-1466", "start": 10212.846, "end": 10225.023, "text": "So there is a moment for a forecast update in April, and that's kind of the last minute to make a change based off of tax revenue.", "speaker": "Unidentified speaker" }, { "id": "cue-1467", "start": 10225.103, "end": 10233.361, "text": "The issue with it is there's not a ton of information available until the last 2 weeks of April because of Tax Day.", "speaker": "Unidentified speaker" }, { "id": "cue-1468", "start": 10234.39, "end": 10241.41, "text": "And the ability to really roll that into the proposed has always been strained, frankly.", "speaker": "Unidentified speaker" }, { "id": "cue-1469", "start": 10241.572, "end": 10245.278, "text": "Even just— it's hard timing-wise.", "speaker": "Unidentified speaker" }, { "id": "cue-1470", "start": 10247.063, "end": 10252.389, "text": "And so— and in the last few years, there hasn't been much of an update.", "speaker": "Unidentified speaker" }, { "id": "cue-1471", "start": 10252.567, "end": 10266.725, "text": "It's been a zero update, I think, 2 years in a row, and small in prior So I think, you know, that obviously is still true that we will get additional information in April and there will still be an opportunity to update council.", "speaker": "Unidentified speaker" }, { "id": "cue-1472", "start": 10266.821, "end": 10272.023, "text": "I think it will just come as a joint update to the mayor and council because it's really—.", "speaker": "Unidentified speaker" }, { "id": "cue-1473", "start": 10272.537, "end": 10275.154, "text": "If in fact the impact is different than has been the last few years.", "speaker": "Dan Ryan" }, { "id": "cue-1474", "start": 10275.202, "end": 10279.682, "text": "Correct, because it's really right around May 1st that there's any meaningful update.", "speaker": "Unidentified speaker" }, { "id": "cue-1475", "start": 10279.746, "end": 10284.22, "text": "Thanks, just jogging my memory on why that was the mayor's proposal came out later.", "speaker": "Dan Ryan" }, { "id": "cue-1476", "start": 10284.369, "end": 10285.607, "text": "I think it was— all right, thanks.", "speaker": "Dan Ryan" }, { "id": "cue-1477", "start": 10288.052, "end": 10288.791, "text": "Thank you, Councilor Ryan.", "speaker": "Jamie Dunphy" }, { "id": "cue-1478", "start": 10288.855, "end": 10289.337, "text": "Councilor Knoll.", "speaker": "Jamie Dunphy" }, { "id": "cue-1479", "start": 10289.964, "end": 10290.928, "text": "Thank you, Council President.", "speaker": "Sameer Kanal" }, { "id": "cue-1480", "start": 10291.008, "end": 10297.05, "text": "Um, so I mentioned a negative thing that happened 2 years ago in this space, uh, or 2 budget years ago.", "speaker": "Sameer Kanal" }, { "id": "cue-1481", "start": 10297.211, "end": 10300.126, "text": "Last year, I, I agree with what Councilor Ryan was starting off with.", "speaker": "Sameer Kanal" }, { "id": "cue-1482", "start": 10300.19, "end": 10309.353, "text": "I think working with the, uh, the, um, engagement officer, we were able to plan something that I think reflected, in District 2 at least, every I know your district was a little different.", "speaker": "Sameer Kanal" }, { "id": "cue-1483", "start": 10309.433, "end": 10314.163, "text": "But in District 2, at least something that where we were all there together, it reflected all of our interests.", "speaker": "Sameer Kanal" }, { "id": "cue-1484", "start": 10314.307, "end": 10318.86, "text": "I think I'm not speaking for Councilor Pirtle-Guiney, but I think that she agrees.", "speaker": "Sameer Kanal" }, { "id": "cue-1485", "start": 10319.918, "end": 10321.393, "text": "You know, I'll give her a chance to speak.", "speaker": "Sameer Kanal" }, { "id": "cue-1486", "start": 10321.457, "end": 10324.086, "text": "Oh yeah, she put all the charts up and dots and yeah.", "speaker": "Dan Ryan" }, { "id": "cue-1487", "start": 10324.182, "end": 10326.795, "text": "And obviously, you know, Mayor, Administrator, they were there too.", "speaker": "Sameer Kanal" }, { "id": "cue-1488", "start": 10326.907, "end": 10331.732, "text": "So I think that approach was really helpful for that in both of those 2 timeframes.", "speaker": "Sameer Kanal" }, { "id": "cue-1489", "start": 10331.781, "end": 10332.903, "text": "And I really appreciate that.", "speaker": "Sameer Kanal" }, { "id": "cue-1490", "start": 10335.791, "end": 10343.755, "text": "Very interested in digging in, in particular on that and the last one entirely, 'cause that is when it's more in the council wheelhouse.", "speaker": "Sameer Kanal" }, { "id": "cue-1491", "start": 10344.461, "end": 10351.317, "text": "After any questions that anyone else has on engagement, I have questions on other things, so I'll just get outta the queue and hop back in.", "speaker": "Sameer Kanal" }, { "id": "cue-1492", "start": 10351.446, "end": 10351.639, "text": "Thanks.", "speaker": "Sameer Kanal" }, { "id": "cue-1493", "start": 10351.944, "end": 10352.313, "text": "Sounds good.", "speaker": "Jamie Dunphy" }, { "id": "cue-1494", "start": 10352.891, "end": 10353.485, "text": "Thank you, Councilor Knoll.", "speaker": "Jamie Dunphy" }, { "id": "cue-1495", "start": 10353.549, "end": 10354.24, "text": "Councilor Zimmerman.", "speaker": "Jamie Dunphy" }, { "id": "cue-1496", "start": 10355.701, "end": 10356.134, "text": "Thank you.", "speaker": "Eric Zimmerman" }, { "id": "cue-1497", "start": 10356.439, "end": 10365.507, "text": "This is the only government I've worked at where our employees are utilizing the public comment periods during the budget, and, and not in a small manner.", "speaker": "Eric Zimmerman" }, { "id": "cue-1498", "start": 10365.651, "end": 10367.079, "text": "And some days they were the majority.", "speaker": "Eric Zimmerman" }, { "id": "cue-1499", "start": 10368.459, "end": 10375.968, "text": "That tells me that we have an opportunity to build in an employee moment for, for public feedback or public comment.", "speaker": "Eric Zimmerman" }, { "id": "cue-1500", "start": 10376.401, "end": 10382.77, "text": "And I think that actually would protect the, the nature of the, of the public comment moments.", "speaker": "Eric Zimmerman" }, { "id": "cue-1501", "start": 10383.139, "end": 10394.967, "text": "And I think finding a way to, to divorce 2 from being the same thing because it has a growing trend, and I think it can actually be a more fruitful conversation if we are more deliberate and plan that out.", "speaker": "Eric Zimmerman" }, { "id": "cue-1502", "start": 10395.031, "end": 10398.643, "text": "And I'm not seeing that here reflected quite, and if I've missed it, please tell me.", "speaker": "Eric Zimmerman" }, { "id": "cue-1503", "start": 10398.723, "end": 10402.414, "text": "But it has grown to be such a huge trend at this point.", "speaker": "Eric Zimmerman" }, { "id": "cue-1504", "start": 10402.719, "end": 10402.992, "text": "It—.", "speaker": "Eric Zimmerman" }, { "id": "cue-1505", "start": 10403.217, "end": 10405.4, "text": "I think we, I think we mentioned it last year.", "speaker": "Eric Zimmerman" }, { "id": "cue-1506", "start": 10405.464, "end": 10418.249, "text": "I think a few people mentioned it last year, and I think we really need to get deliberate about that because I would hope that I think that members of the public who don't have access to us all day, all the time, are able to take those slots a lot.", "speaker": "Eric Zimmerman" }, { "id": "cue-1507", "start": 10418.313, "end": 10420.017, "text": "There were people who didn't get heard last year.", "speaker": "Eric Zimmerman" }, { "id": "cue-1508", "start": 10421.738, "end": 10426.719, "text": "And employee feedback is clearly a very important thing because so many are showing up.", "speaker": "Eric Zimmerman" }, { "id": "cue-1509", "start": 10426.799, "end": 10431.783, "text": "So let's find an opportunity in a different manner, in a different place, in a different time to have that occur.", "speaker": "Eric Zimmerman" }, { "id": "cue-1510", "start": 10433.788, "end": 10444.827, "text": "Because I think that there are community conversations, public conversations about the services from and I mean this in the best way, the layperson's perspective for what they expect from the city.", "speaker": "Eric Zimmerman" }, { "id": "cue-1511", "start": 10445.564, "end": 10449.667, "text": "And then there's the internal workings of an organization going through change.", "speaker": "Eric Zimmerman" }, { "id": "cue-1512", "start": 10449.892, "end": 10453.851, "text": "And those conversations got quite muddied last year.", "speaker": "Eric Zimmerman" }, { "id": "cue-1513", "start": 10454.732, "end": 10459.894, "text": "So I think we can be better just across the board for both audiences and both perspectives.", "speaker": "Eric Zimmerman" }, { "id": "cue-1514", "start": 10459.942, "end": 10461.705, "text": "So I hope we can build that into engagement.", "speaker": "Eric Zimmerman" }, { "id": "cue-1515", "start": 10461.769, "end": 10462.106, "text": "Thank you.", "speaker": "Eric Zimmerman" }, { "id": "cue-1516", "start": 10462.731, "end": 10463.468, "text": "Yeah, thank you.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1517", "start": 10463.773, "end": 10472.483, "text": "We did briefly note under that values and priorities phase, building in some employee-focused We have not mapped out the details of what that will look like yet.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1518", "start": 10472.595, "end": 10484.686, "text": "I agree that looking at some peer organizations for the defining details would be helpful, but we do think that employees will really appreciate as well having some employee-focused opportunities.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1519", "start": 10484.878, "end": 10485.97, "text": "Let me rephrase it then.", "speaker": "Eric Zimmerman" }, { "id": "cue-1520", "start": 10486.082, "end": 10488.876, "text": "I think I didn't realize that what you meant by that, that I see that line now.", "speaker": "Eric Zimmerman" }, { "id": "cue-1521", "start": 10489.775, "end": 10494.255, "text": "I think that having more than one of these phases incorporate is gonna be important.", "speaker": "Eric Zimmerman" }, { "id": "cue-1522", "start": 10495.057, "end": 10496.707, "text": "Given what we saw the last 2 years.", "speaker": "Eric Zimmerman" }, { "id": "cue-1523", "start": 10496.755, "end": 10498.213, "text": "But I am now noting that.", "speaker": "Eric Zimmerman" }, { "id": "cue-1524", "start": 10498.277, "end": 10501.338, "text": "So thank you for highlighting that one in values and priorities.", "speaker": "Eric Zimmerman" }, { "id": "cue-1525", "start": 10501.402, "end": 10501.642, "text": "Thanks.", "speaker": "Dan Ryan" }, { "id": "cue-1526", "start": 10501.963, "end": 10502.748, "text": "Yeah, absolutely.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1527", "start": 10502.844, "end": 10508.724, "text": "And did just wanna chime in too on the aspect of shaping exactly how each of these opportunities happen.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1528", "start": 10510.038, "end": 10512.169, "text": "There will be ample opportunity for that.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1529", "start": 10512.442, "end": 10517.665, "text": "I do plan to work with all the parties involved here to get feedback on exactly how it should look.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1530", "start": 10517.986, "end": 10531.495, "text": "I think what we're hoping to do at this stage is get agreement on the phases the purpose of each phase so that we can kind of move on to the planning and be able to lock things in at a much earlier date and then work on the details.", "speaker": "Laura Oppenheimer" }, { "id": "cue-1531", "start": 10532.953, "end": 10535.261, "text": "Thank you, Councilor Zimmerman.", "speaker": "Jamie Dunphy" }, { "id": "cue-1532", "start": 10535.789, "end": 10547.295, "text": "Okay, colleagues, I'm going to open the queue to questions about the engagement, but also if there are any other last questions that you have about this presentation, the TAO set, even some questions about the coming budget cycle.", "speaker": "Jamie Dunphy" }, { "id": "cue-1533", "start": 10547.794, "end": 10548.728, "text": "So Councilor Kanal.", "speaker": "Jamie Dunphy" }, { "id": "cue-1534", "start": 10549.951, "end": 10550.225, "text": "Thank you.", "speaker": "Sameer Kanal" }, { "id": "cue-1535", "start": 10552.157, "end": 10557.083, "text": "So there are a lot of questions I have around specific decision packages.", "speaker": "Sameer Kanal" }, { "id": "cue-1536", "start": 10557.131, "end": 10566.253, "text": "I think the ones that I think are worth getting into here, there's one about, it's 28495 on the Portland Tennis Center.", "speaker": "Sameer Kanal" }, { "id": "cue-1537", "start": 10567.06, "end": 10572.707, "text": "The other one is 28401 on the shelter program encumbrance carryover.", "speaker": "Sameer Kanal" }, { "id": "cue-1538", "start": 10573.387, "end": 10576.968, "text": "And a third one is $28,580 on the convention tourism fund balance true-up.", "speaker": "Sameer Kanal" }, { "id": "cue-1539", "start": 10577.417, "end": 10581.72, "text": "I think the convention tourism one is maybe illustrative of some other things.", "speaker": "Sameer Kanal" }, { "id": "cue-1540", "start": 10582.154, "end": 10586.81, "text": "This one effectively shows that we had extra money, that there was unspent dollars last year.", "speaker": "Sameer Kanal" }, { "id": "cue-1541", "start": 10586.874, "end": 10592.317, "text": "We're carrying it over as beginning fund balance, but then it says it's putting it into external materials and services.", "speaker": "Sameer Kanal" }, { "id": "cue-1542", "start": 10592.895, "end": 10595.64, "text": "And I'm curious, there's no detail on that.", "speaker": "Sameer Kanal" }, { "id": "cue-1543", "start": 10596.026, "end": 10607.108, "text": "How would one find out what the expected Uh, we would have to ask them and provide more information in the decision package, so I will do that and we can update it.", "speaker": "Unidentified speaker" }, { "id": "cue-1544", "start": 10607.785, "end": 10612.428, "text": "Okay, uh, I have a few others that are kind of in this space too, so I'll just give the full list to you, uh, offline.", "speaker": "Sameer Kanal" }, { "id": "cue-1545", "start": 10613.009, "end": 10627.131, "text": "Um, the question I have on 28401, yeah, um, which is a shelter program encumbrance carryover, is less about the carryover and more about the, uh, It's the beginning of service impacts.", "speaker": "Sameer Kanal" }, { "id": "cue-1546", "start": 10627.195, "end": 10629.215, "text": "It's the very beginning of page 16 of that.", "speaker": "Sameer Kanal" }, { "id": "cue-1547", "start": 10629.68, "end": 10636.62, "text": "The shelter program's approved and planned budget for fiscal year '26-'27 relies on this $2.76 million carryover.", "speaker": "Sameer Kanal" }, { "id": "cue-1548", "start": 10637.454, "end": 10648, "text": "And my question is, isn't that the exact thing we were trying to avoid last year is building— and even earlier today on the fireside, but at least there was detail in the budget.", "speaker": "Sameer Kanal" }, { "id": "cue-1549", "start": 10648.112, "end": 10653.097, "text": "But the idea that it was— that we were not building around an expectation of a carryover.", "speaker": "Sameer Kanal" }, { "id": "cue-1550", "start": 10653.161, "end": 10653.209, "text": "Yes.", "speaker": "Sameer Kanal" }, { "id": "cue-1551", "start": 10653.879, "end": 10656.521, "text": "So can I get some more information on this one and what happened there?", "speaker": "Sameer Kanal" }, { "id": "cue-1552", "start": 10658.65, "end": 10668.232, "text": "Yeah, I think probably— I mean, I don't know if you want to do it right now, but I think probably will be easiest to have the Portland Solutions staff respond to that.", "speaker": "Unidentified speaker" }, { "id": "cue-1553", "start": 10668.424, "end": 10671.108, "text": "But I don't know if you want to do that now, if they're still in the room or not.", "speaker": "Unidentified speaker" }, { "id": "cue-1554", "start": 10671.382, "end": 10683.775, "text": "This is less a programmatic question and more— didn't— wasn't the idea behind the budget we voted on that the deliverables in the budget we voted on and the money that was in the budget we were voting on yes.", "speaker": "Sameer Kanal" }, { "id": "cue-1555", "start": 10684.433, "end": 10693.762, "text": "Yeah, and I would just say you're absolutely right, Councilor, um, um, that philosophically that is the intent and the norm.", "speaker": "Jonas Biery" }, { "id": "cue-1556", "start": 10694.549, "end": 10710.83, "text": "Um, I think this is a circumstance, and again, I think once we have time to have a little more dialogue about it, there's sort of unique elements of this request related to transfer of funds multi-jurisdictionally, etc., that made that ideal norm a little more challenging.", "speaker": "Jonas Biery" }, { "id": "cue-1557", "start": 10710.942, "end": 10717.782, "text": "So I wanted to acknowledge that you're right, that is the intent, and also true that sometimes that isn't 100% possible.", "speaker": "Jonas Biery" }, { "id": "cue-1558", "start": 10718.248, "end": 10720.352, "text": "Okay, and then I'll follow up on the programmatic side.", "speaker": "Sameer Kanal" }, { "id": "cue-1559", "start": 10720.4, "end": 10727.657, "text": "I guess the big picture is the more we can do to not make Portland Solutions an exception to every rule, the better we will be.", "speaker": "Sameer Kanal" }, { "id": "cue-1560", "start": 10727.962, "end": 10738.608, "text": "And I'm looking forward to it either being the 5th service area or part of a service area, but not this thing that exists last question.", "speaker": "Sameer Kanal" }, { "id": "cue-1561", "start": 10740.079, "end": 10741.357, "text": "Portland Tennis Center funding request.", "speaker": "Sameer Kanal" }, { "id": "cue-1562", "start": 10743.983, "end": 10759.453, "text": "I find it challenging to even wrestle with the idea that we're supposed to vote on something related to putting money into sidewalk repairs that relate to it when we were originally told in the budget process that we were going to vote on whether or not to transfer it over in the first place.", "speaker": "Sameer Kanal" }, { "id": "cue-1563", "start": 10759.501, "end": 10759.92, "text": "I think that's a fair point.", "speaker": "Sameer Kanal" }, { "id": "cue-1564", "start": 10760.06, "end": 10769.26, "text": "First place, and now we're being asked because of a request that came in from the chosen partner, which we had no influence over, to, to do this.", "speaker": "Sameer Kanal" }, { "id": "cue-1565", "start": 10769.789, "end": 10775.923, "text": "And then it's also talking about access to something that, as far as we know, is going to get closed off to the public at some point.", "speaker": "Sameer Kanal" }, { "id": "cue-1566", "start": 10776.629, "end": 10784.256, "text": "So we have— I mean, we have no information, at least I've been given none despite asking, on what has even happened.", "speaker": "Sameer Kanal" }, { "id": "cue-1567", "start": 10784.657, "end": 10792.498, "text": "This was signed, you know, Um, during our council recess after we were promised that it was going to be brought back to council.", "speaker": "Sameer Kanal" }, { "id": "cue-1568", "start": 10793.092, "end": 10796.698, "text": "So I'm, I'm just big picture trying to understand what is going on with this one.", "speaker": "Sameer Kanal" }, { "id": "cue-1569", "start": 10797.548, "end": 10804.233, "text": "Um, and sort of the legal framework as well about like, we budgeted for something where it would come back to us.", "speaker": "Sameer Kanal" }, { "id": "cue-1570", "start": 10804.313, "end": 10805.916, "text": "It was in the, the conversation.", "speaker": "Sameer Kanal" }, { "id": "cue-1571", "start": 10805.98, "end": 10807.359, "text": "I run the transcripts.", "speaker": "Sameer Kanal" }, { "id": "cue-1572", "start": 10807.407, "end": 10808.946, "text": "I've read them out loud several times up here.", "speaker": "Sameer Kanal" }, { "id": "cue-1573", "start": 10809.01, "end": 10815.632, "text": "I won't do it again about won't we have a chance to weigh in on whether or not we're privatizing this thing.", "speaker": "Sameer Kanal" }, { "id": "cue-1574", "start": 10817.492, "end": 10831.45, "text": "And then we're told we would, got privatized, private partner is now asking for $200,000 to be spent for something, and we don't even know if Portlanders are going to be allowed into this thing for free or not or how that's going to work.", "speaker": "Sameer Kanal" }, { "id": "cue-1575", "start": 10831.869, "end": 10836.903, "text": "So can I— I think this is more of a programmatic question and a legal question than for the folks sitting up here.", "speaker": "Sameer Kanal" }, { "id": "cue-1576", "start": 10837.362, "end": 10845.894, "text": "But can we get some information on what exactly is going on and, and even just the basic guarantee that access will remain open to the City of Portland's residents?", "speaker": "Sameer Kanal" }, { "id": "cue-1577", "start": 10846.216, "end": 10847.556, "text": "Because we don't even have that right now.", "speaker": "Sameer Kanal" }, { "id": "cue-1578", "start": 10850.487, "end": 10852.431, "text": "Yeah, we'll follow up on you on that, Councilor.", "speaker": "Raymond C. Lee" }, { "id": "cue-1579", "start": 10852.495, "end": 10854.199, "text": "I'll make sure I follow up personally on that.", "speaker": "Raymond C. Lee" }, { "id": "cue-1580", "start": 10854.52, "end": 10855.259, "text": "Thank you.", "speaker": "Sameer Kanal" }, { "id": "cue-1581", "start": 10856.03, "end": 10860.824, "text": "Um, and I'll follow up as well with Parks on just the very specific stuff, but I thank you for the big picture.", "speaker": "Sameer Kanal" }, { "id": "cue-1582", "start": 10862.509, "end": 10863.264, "text": "Thank you, Councilor Kanal.", "speaker": "Jamie Dunphy" }, { "id": "cue-1583", "start": 10863.38, "end": 10867.05, "text": "Well, colleagues, any further questions, conversations, comments?", "speaker": "Jamie Dunphy" }, { "id": "cue-1584", "start": 10872.612, "end": 10873.612, "text": "If you got another question.", "speaker": "Jamie Dunphy" }, { "id": "cue-1585", "start": 10875.864, "end": 10879.859, "text": "Uh, say, question on the HomeShare pilot carryover.", "speaker": "Sameer Kanal" }, { "id": "cue-1586", "start": 10880.636, "end": 10882.35, "text": "Um, what happened here?", "speaker": "Sameer Kanal" }, { "id": "cue-1587", "start": 10882.819, "end": 10890.278, "text": "Uh, because this one we budgeted $500,000 and $471,000 is currently a request for, for being carried over.", "speaker": "Sameer Kanal" }, { "id": "cue-1588", "start": 10892.346, "end": 10896.299, "text": "I know this is a priority for you, Mayor, and I appreciate you being here and being able to answer this.", "speaker": "Sameer Kanal" }, { "id": "cue-1589", "start": 10896.412, "end": 10904.479, "text": "I'm not sure if it is your question or administrator or somebody else, but what wasn't— why did it not get all spent this year is really my question.", "speaker": "Sameer Kanal" }, { "id": "cue-1590", "start": 10906.489, "end": 10907.292, "text": "I'll take the first shot.", "speaker": "Unidentified speaker" }, { "id": "cue-1591", "start": 10907.356, "end": 10911.422, "text": "It's a pilot, so the pilot's being rolled out and it's picking up steam.", "speaker": "Jonas Biery" }, { "id": "cue-1592", "start": 10912.08, "end": 10916.264, "text": "But as far as the encumbrance carryover, it's just taking the funds and still isolating in that program.", "speaker": "Jonas Biery" }, { "id": "cue-1593", "start": 10916.953, "end": 10922.373, "text": "That's being advertised and we're accepting applications and we're expanding the providers.", "speaker": "Jonas Biery" }, { "id": "cue-1594", "start": 10923.352, "end": 10926.495, "text": "Okay, so it's a ramp-up to the—.", "speaker": "Sameer Kanal" }, { "id": "cue-1595", "start": 10926.495, "end": 10926.896, "text": "Right.", "speaker": "Sameer Kanal" }, { "id": "cue-1596", "start": 10927.136, "end": 10929.51, "text": "Okay, appreciate that clarification.", "speaker": "Sameer Kanal" }, { "id": "cue-1597", "start": 10929.558, "end": 10933.391, "text": "I'll follow up with the rest offline, but thank you, Council President.", "speaker": "Sameer Kanal" }, { "id": "cue-1598", "start": 10933.551, "end": 10934.401, "text": "Thank you, Councilor Kanal.", "speaker": "Jamie Dunphy" }, { "id": "cue-1599", "start": 10935.171, "end": 10938.443, "text": "All right, we have reached the conclusion of our work session.", "speaker": "Jamie Dunphy" }, { "id": "cue-1600", "start": 10938.523, "end": 10942.275, "text": "Thank you all so much for this first conversation about the next budget cycle.", "speaker": "Jamie Dunphy" }, { "id": "cue-1601", "start": 10942.372, "end": 10943.757, "text": "It's always budget season here.", "speaker": "Jamie Dunphy" }, { "id": "cue-1602", "start": 10944.449, "end": 10957.074, "text": "Um, as promised, colleagues, the next big conversation and opportunity for us to actually meddle with the TAO is going to be at the Committee of the Whole, in which we can actually have conversations about any potential amendments, as we heard Councilor Pirtle-Guiney and potentially others.", "speaker": "Jamie Dunphy" }, { "id": "cue-1603", "start": 10957.734, "end": 10961.035, "text": "With that, I am adjourning this work session of the Portland City Council.", "speaker": "Jamie Dunphy" }, { "id": "cue-1604", "start": 10961.1, "end": 10961.422, "text": "Thank you.", "speaker": "Jamie Dunphy" }, { "id": "cue-1605", "start": 10966.917, "end": 10967.497, "text": "Thank you.", "speaker": "Angelita Morillo" } ] }