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The hour of 430,

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having arrived,

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I will call to order the

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Finance Committee meeting of Monday,

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July 27th, 2026,

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and ask Director Schmedekiti to

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please call the roll.

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Council President Madison?

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Here.

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Alder Revere?

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Here.

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Alder Bidiver?

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Here.

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Alder Evers?

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Holder Vankella?

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Here.

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Holder O'Brien?

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Mary, go for them.

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Thank you.

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I assume that Alder Ever's

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dog is making noise and thus he's

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not unmuting.

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Thank you, Alder.

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Our first item is

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general public comment.

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We have a number of people

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registered for general

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public comments.

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I, however, do not see

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them on the Zoom.

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So I would just ask our

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tech facilitator to confirm

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that.

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I do not anyone except

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for Mary and the attendees,

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Mayor.

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To his city staff.

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So it's the will of the

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body, but might

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be appropriate to have

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a motion to table

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item one, which is general public

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comment to the

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end of our agenda to see if

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folks do show up.

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A motion to table the

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public comment until the end of the

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agenda to give folks time to join.

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Second.

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Moved and seconded to place on

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the table. Is there any objection to

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placing this item on the table?

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Seeing none, that is

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on the table.

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Then are there any disclosures or

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recusals on items on

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tonight's agenda?

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Seeing none.

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And we'll move on to the

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consent agenda.

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In addition to item one, which is

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now on the table,

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and we have, I believe,

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presentations on items 16

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and 18.

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So those will be separated.

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Are there any other items that

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members of the body would like to

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see separated from the consent at

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this time?

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I'm Alda Revere.

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Thank you, Mayor.

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We could please separate agenda

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items three and

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13.

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And I vote three

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and thirteen.

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And I was gonna suggest agenda item

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nine because the fiscal note

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was inaccurate, but we just noticed

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it looks like it's been corrected

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since I reviewed the agenda earlier

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today.

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Thank you, Alder will separate items

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three and 13.

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Thank you president Madison

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Not on this but I did get

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a message from someone who said they

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registered to speak but did not get

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a link an email link

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Can we have our

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tech facilitator just check on that,

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please?

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Yes.

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Thank you.

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All right, are there any other items

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that members of the body would like

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to see excluded from the consent

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agenda? Alder Viteber.

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I just, very

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briefly, items two and four allow

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our continuing staff

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to just say hello.

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Thank you all there.

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Are there any other items

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that members of the body

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would like to see separated from the

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consent agenda at this time?

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Seeing none, then we will be

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separating items one, two, three,

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four, 13,

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16, and 18.

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If I could get a motion please on

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the balance of the agenda, which

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will stay on consent.

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Move to adopt.

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Sorry, second.

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I moved and seconded to adopt

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the balance of the agenda

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and the recommendations therein.

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Is there any objection to recording

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unanimous vote in favor?

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Seeing no objection, we'll record

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that vote and

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move on.

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So our first item

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then is item two,

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which is legislature 94051.

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I'm pleased to submit to you

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the appointment of David Schmidke

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for a confirmation of an additional

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five-year term as finance director.

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And if I can get a motion in

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a second, we could ask the director

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to say a few words if you'd like.

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Motion to accept or adopt.

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Moved and

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seconded to confirm.

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And Director Schmidke.

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Thank you, Mayor.

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Thank you members of the Finance

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Committee.

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I'm honored to

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have been asked

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by the Mayor to continue serving

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as Finance Director, and

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I look forward to continue

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work on a lot of the efforts

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that we have around transparency

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in the budgets, our efforts

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around bringing data

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into the process

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for decision-making

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and continuing

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to to

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serve both the mayor and the council

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in the stewardship of the

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city's financial resources.

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So again, I feel very honored and

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thank you again for this

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opportunity to serve.

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Thank you, Dave.

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Are there any questions for

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Director Schmidke?

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Well, I would just like to

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appreciate the fact that DeBecter

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Schmidke is willing to continue

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serving. I'm sure the rest of you

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feel the same way.

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So without further ado, it's

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moved and seconded to recommend

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confirmation to the full council.

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Is there any objection to recording

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a unanimous vote in favor?

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Seeing no objection, we'll record an

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enthusiastic unanimous in favor of

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confirmation and move

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to item three, which is

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Legistrar 94053,

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submitting the appointment of

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Christine Knapp.

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And Christine is here with us.

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I'm delighted to introduce you to

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her and recommend her

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confirmation for a

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five-year term as

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the water utility general manager.

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And if I can get a motion

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recommending confirmation.

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But I'm also.

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To accept second.

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Moved and seconded to recommend

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confirmation.

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Christine, welcome.

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Thank you for joining us.

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If you'd like to introduce yourself

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to the body and just say a few

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words.

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Thank you, Mayor.

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Thank you for having me, members

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of the Finance Committee.

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I am Christine Knapp, and I

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look forward very much to getting to

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know all of you and learning

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the ins and outs of the water

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utility and making

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sure that my contribution to

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the fiscal responsibility is

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on par with what you're all

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expecting.

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So I could go on, but I will

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leave that to the future.

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But thank you for have me very much.

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Thank you for being here.

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Are there any questions for

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Christine?

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Seeing none, oh, all the bit of her.

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Just, I mean, if you just want to

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like a very brief,

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like summary of like,

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what brings you here today?

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Like what's your background and

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why, why Madison?

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Sure, so I'm currently,

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for the next couple of weeks,

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the water plant manager for

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the City of Cedar Rapids in Iowa.

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And I oversee the

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operations and regulatory matters

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for our two treatment plants

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in the city.

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And why not Madison?

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I've visited there and I've

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loved it every single time.

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And I think it was about three years

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ago, I said I would.

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Love to retire here and

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I actually am possibly

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going to see that happen.

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So I look forward to that.

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So yeah, thank you

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Thank you alder any other

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Any questions?

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If not, it's been moved and

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seconded to, Alder, Revere, go

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ahead.

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Yes, thank you mayor and I

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separated this item first and

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foremost so that we could meet

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Christine so very warm

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welcome from me, Christine.

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I really look forward to working

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with you.

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Thank you for coming to Madison and

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for being with us today.

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00:09:19,660 --> 00:09:21,219
I did have a question.

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00:09:21,220 --> 00:09:22,620
However, Mayor, not for

258
00:09:23,720 --> 00:09:25,739
Warranty Utility General Manager

259
00:09:25,740 --> 00:09:27,719
nominee, but rather perhaps

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00:09:27,720 --> 00:09:29,659
for HR Director Hilson

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00:09:29,660 --> 00:09:31,079
or for you.

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00:09:31,080 --> 00:09:33,339
And that is when I read the

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00:09:33,340 --> 00:09:35,019
contract that's before us employment

264
00:09:35,020 --> 00:09:36,129
agreement.

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00:09:36,130 --> 00:09:37,949
It looks like perhaps

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00:09:37,950 --> 00:09:41,129
there might be inconsistency

267
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in the provision that's

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entitled general responsibility and

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then further down personnel actions

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00:09:48,450 --> 00:09:50,489
as it relates to

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direct reporting and

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00:09:52,450 --> 00:09:54,869
who the

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00:09:54,870 --> 00:09:56,929
general manager would serve at and

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00:09:56,930 --> 00:09:58,209
report to.

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00:09:58,210 --> 00:09:59,349
So I was just wondering if you could

276
00:09:59,350 --> 00:10:00,869
clarify, obviously this is a whole

277
00:10:00,870 --> 00:10:02,769
new world for us with the next

278
00:10:02,770 --> 00:10:04,389
agenda item of our exciting.

279
00:10:05,430 --> 00:10:07,309
New public works director and

280
00:10:07,310 --> 00:10:08,469
how that all fits in.

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00:10:08,470 --> 00:10:10,289
But to be more specific

282
00:10:10,290 --> 00:10:12,749
in general responsibility,

283
00:10:12,750 --> 00:10:14,849
it says this position

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00:10:14,850 --> 00:10:16,689
reports to the

285
00:10:16,690 --> 00:10:18,689
water board and the mayor

286
00:10:18,690 --> 00:10:20,629
and works as a member of the

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00:10:20,630 --> 00:10:21,909
public works team, but then further

288
00:10:21,910 --> 00:10:23,509
down under personnel actions, it

289
00:10:23,510 --> 00:10:25,449
says the general manager serves at

290
00:10:25,450 --> 00:10:27,269
the pleasure of the mayor, and

291
00:10:27,270 --> 00:10:29,049
the director of public works.

292
00:10:30,350 --> 00:10:32,708
So just looking for a clarification

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00:10:32,709 --> 00:10:35,019
and wonder if we need any.

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Minor amendment to

295
00:10:36,940 --> 00:10:38,599
the draft agreement.

296
00:10:38,600 --> 00:10:39,600
Director Hilsen.

297
00:10:49,300 --> 00:10:50,719
Not yet, you're still muted on our

298
00:10:50,720 --> 00:10:51,720
end.

299
00:10:52,280 --> 00:10:54,179
I can try and unmute

300
00:10:54,180 --> 00:10:55,499
you.

301
00:10:55,500 --> 00:10:57,939
There you go, you should be unmuted.

302
00:10:57,940 --> 00:10:58,940
Yes.

303
00:10:59,660 --> 00:11:01,679
Okay, thank you so much.

304
00:11:01,680 --> 00:11:03,519
Yes, this is a

305
00:11:03,520 --> 00:11:04,959
little bit of a new world for us,

306
00:11:04,960 --> 00:11:06,679
but not entirely.

307
00:11:06,680 --> 00:11:09,179
We are really excited about

308
00:11:09,180 --> 00:11:11,599
Charlie's transition to

309
00:11:11,600 --> 00:11:13,779
the Public Works Director.

310
00:11:15,780 --> 00:11:18,479
And so there

311
00:11:18,480 --> 00:11:20,799
will be a simultaneous

312
00:11:20,800 --> 00:11:22,919
reporting requirement

313
00:11:22,920 --> 00:11:23,920
between

314
00:11:26,050 --> 00:11:28,229
uh Christine and

315
00:11:28,230 --> 00:11:30,249
the mayor and the public

316
00:11:30,250 --> 00:11:32,789
works director um

317
00:11:32,790 --> 00:11:34,849
obviously it requires that

318
00:11:34,850 --> 00:11:37,229
the two of them be on board with

319
00:11:37,230 --> 00:11:39,329
um directions that she

320
00:11:39,330 --> 00:11:41,249
receives that um they're

321
00:11:41,250 --> 00:11:42,609
on board with any sort of

322
00:11:42,610 --> 00:11:44,509
disciplinary action any sort

323
00:11:44,510 --> 00:11:46,569
employment action

324
00:11:46,570 --> 00:11:48,509
um that they may receive

325
00:11:48,510 --> 00:11:50,529
but I think the call

326
00:11:50,530 --> 00:11:52,729
out to the

327
00:11:52,730 --> 00:11:54,989
board is really sort

328
00:11:54,990 --> 00:11:56,829
of the reporting requirement to

329
00:11:56,830 --> 00:11:57,689
the Board.

330
00:11:57,690 --> 00:11:59,989
But I can take a look at that

331
00:11:59,990 --> 00:12:02,009
after today's meeting and see

332
00:12:02,010 --> 00:12:03,769
if maybe that needs to be tweaked or

333
00:12:03,770 --> 00:12:05,149
modified so that.

334
00:12:05,150 --> 00:12:07,370
It doesn't seem confusing.

335
00:12:09,080 --> 00:12:10,559
Yeah, thank you very much, Aaron.

336
00:12:10,560 --> 00:12:12,339
Just to clarify the water board

337
00:12:12,340 --> 00:12:13,819
part, I totally get, and I'm sure

338
00:12:13,820 --> 00:12:15,779
that's our past practice all

339
00:12:15,780 --> 00:12:17,599
the years I've been here for this

340
00:12:17,600 --> 00:12:19,459
position. My question was just

341
00:12:19,460 --> 00:12:21,339
with Charlie now as our Director

342
00:12:21,340 --> 00:12:23,199
of Public Works, and

343
00:12:23,200 --> 00:12:24,999
my understanding of his new role is

344
00:12:25,000 --> 00:12:27,399
that those divisions

345
00:12:27,400 --> 00:12:29,319
in this department in the

346
00:12:29,320 --> 00:12:31,199
Public Works team would directly

347
00:12:31,200 --> 00:12:33,039
report to him and

348
00:12:33,040 --> 00:12:35,139
perhaps continue to direct report

349
00:12:35,140 --> 00:12:36,359
to the mayor as well. So I was just

350
00:12:36,360 --> 00:12:37,749
wondering if we needed to.

351
00:12:37,750 --> 00:12:39,549
Add director of public works in that

352
00:12:39,550 --> 00:12:42,149
general responsibility section

353
00:12:42,150 --> 00:12:43,969
that the position reports

354
00:12:43,970 --> 00:12:46,109
to the board the water board

355
00:12:46,110 --> 00:12:49,069
the mayor and the director of

356
00:12:49,070 --> 00:12:50,749
yeah public works to make it

357
00:12:50,750 --> 00:12:52,749
consistent with a section later

358
00:12:52,750 --> 00:12:54,289
on about, again, personnel actions.

359
00:12:55,400 --> 00:12:57,019
Yeah, I think that definitely adds

360
00:12:57,020 --> 00:12:58,859
clarity so I can get that taken

361
00:12:58,860 --> 00:13:00,859
care of before it

362
00:13:00,860 --> 00:13:01,860
comes back to

363
00:13:03,100 --> 00:13:04,799
Thank you so much, Erin, appreciate

364
00:13:04,800 --> 00:13:05,659
it.

365
00:13:05,660 --> 00:13:06,660
Thank you, ma'am.

366
00:13:07,560 --> 00:13:08,379
Thank you all there.

367
00:13:08,380 --> 00:13:09,380
Welcome again, Christine.

368
00:13:11,230 --> 00:13:12,829
Thank you so much. Thank you, Alder.

369
00:13:12,830 --> 00:13:14,789
Thank you Director Hilleson.

370
00:13:14,790 --> 00:13:16,689
Is there any other questions or

371
00:13:16,690 --> 00:13:17,690
discussion?

372
00:13:19,590 --> 00:13:20,590
Seeing none,

373
00:13:21,970 --> 00:13:23,469
it has been moved and seconded to

374
00:13:23,470 --> 00:13:24,649
recommend confirmation.

375
00:13:24,650 --> 00:13:25,849
Is there any objection to recording

376
00:13:25,850 --> 00:13:26,850
unanimous vote in favor?

377
00:13:29,100 --> 00:13:30,339
Seeing no objection, we'll record a

378
00:13:30,340 --> 00:13:31,539
unanimous vote in favor of

379
00:13:31,540 --> 00:13:32,699
recommending confirmation to the

380
00:13:32,700 --> 00:13:33,479
full council.

381
00:13:33,480 --> 00:13:34,759
Thank you for being here, Christine,

382
00:13:34,760 --> 00:13:36,079
and we'll see you at the council

383
00:13:36,080 --> 00:13:37,080
meeting.

384
00:13:38,500 --> 00:13:39,879
All right, that will bring us to

385
00:13:39,880 --> 00:13:42,919
item four, which is Legistrar 93925,

386
00:13:42,920 --> 00:13:44,919
submitting the appointment of

387
00:13:44,920 --> 00:13:45,879
Charles J.

388
00:13:45,880 --> 00:13:47,739
Romines for a confirmation of a

389
00:13:47,740 --> 00:13:49,319
five-year term as Director of Public

390
00:13:49,320 --> 00:13:51,519
Works. I'm delighted to

391
00:13:51,520 --> 00:13:53,479
submit this recommendation to

392
00:13:53,480 --> 00:13:54,259
you.

393
00:13:54,260 --> 00:13:56,719
And if I can get a motion,

394
00:13:56,720 --> 00:13:58,580
please, to recommend confirmation.

395
00:13:59,760 --> 00:14:03,719
Motion to accept,

396
00:14:03,720 --> 00:14:05,639
motion to adopt, motion to- Motion

397
00:14:05,640 --> 00:14:07,240
to recommend. Move Charlie here.

398
00:14:08,280 --> 00:14:09,399
And second it.

399
00:14:10,780 --> 00:14:11,999
Thank you.

400
00:14:13,520 --> 00:14:16,219
I know that

401
00:14:16,220 --> 00:14:18,159
Charlie

402
00:14:18,160 --> 00:14:20,139
is traveling at the

403
00:14:20,140 --> 00:14:23,239
moment and can't be here.

404
00:14:23,240 --> 00:14:25,439
So perhaps we can forgo

405
00:14:25,440 --> 00:14:27,819
any questions or congratulations

406
00:14:27,820 --> 00:14:29,080
until the council meeting.

407
00:14:30,200 --> 00:14:32,139
But it's been moved and seconded.

408
00:14:32,140 --> 00:14:33,599
Is there any objection to recording

409
00:14:33,600 --> 00:14:34,940
a unanimous vote in favor to I

410
00:14:34,941 --> 00:14:36,219
recommend confirmation to the full

411
00:14:36,220 --> 00:14:37,220
council.

412
00:14:38,080 --> 00:14:39,440
Seeing no objection, we'll.

413
00:14:40,970 --> 00:14:43,149
Record that vote.

414
00:14:43,150 --> 00:14:45,069
And then that will

415
00:14:45,070 --> 00:14:47,289
take us to

416
00:14:47,290 --> 00:14:49,229
item 13, which is

417
00:14:49,230 --> 00:14:51,209
legislature 93941,

418
00:14:51,210 --> 00:14:52,749
approving a revised rate for the

419
00:14:52,750 --> 00:14:54,769
2026 resource recovery special

420
00:14:54,770 --> 00:14:56,969
charge and amending the 20 26

421
00:14:56,970 --> 00:14:59,149
streets division operating budget.

422
00:14:59,150 --> 00:15:00,229
On item 13.

423
00:15:00,230 --> 00:15:01,949
Can I get a motion please?

424
00:15:01,950 --> 00:15:03,230
Motions for adapt.

425
00:15:04,270 --> 00:15:06,129
Moved and seconded to adopt item

426
00:15:06,130 --> 00:15:07,130
13

427
00:15:08,310 --> 00:15:09,549
Alder, Verveer, I believe you had

428
00:15:09,550 --> 00:15:11,409
questions and Roger Kleist is

429
00:15:11,410 --> 00:15:12,410
here.

430
00:15:12,530 --> 00:15:14,429
Yes, thanks again, Mayor,

431
00:15:14,430 --> 00:15:15,249
and welcome, Roger.

432
00:15:15,250 --> 00:15:16,349
I think this is your first time

433
00:15:16,350 --> 00:15:18,369
before this committee, at least

434
00:15:18,370 --> 00:15:20,409
in your newly well-deserved promoted

435
00:15:20,410 --> 00:15:21,889
role, so welcome and thank you for

436
00:15:21,890 --> 00:15:22,909
being here.

437
00:15:22,910 --> 00:15:24,369
Yeah, I obviously read the

438
00:15:24,370 --> 00:15:26,249
resolution and I just had a couple

439
00:15:26,250 --> 00:15:28,869
of curiosity questions.

440
00:15:28,870 --> 00:15:31,129
The first one was it was

441
00:15:31,130 --> 00:15:32,209
wondering, and I presume you know

442
00:15:32,210 --> 00:15:33,569
the answer to these questions, but

443
00:15:33,570 --> 00:15:36,329
anyway, I was wondering about

444
00:15:36,330 --> 00:15:38,209
the $125,000 in

445
00:15:38,210 --> 00:15:39,589
lost revenue projected from

446
00:15:39,590 --> 00:15:41,249
Pelletary and our contract with

447
00:15:41,250 --> 00:15:42,149
them.

448
00:15:42,150 --> 00:15:43,429
And I was wondering if you could be

449
00:15:43,430 --> 00:15:45,549
more specific as to

450
00:15:45,550 --> 00:15:47,529
which recycled commodity

451
00:15:48,870 --> 00:15:50,829
is the one that's

452
00:15:50,830 --> 00:15:53,049
decreased in market value currently

453
00:15:53,050 --> 00:15:54,570
and that sort of thing.

454
00:15:55,590 --> 00:15:57,429
If you could explain the lost

455
00:15:57,430 --> 00:15:58,949
revenue from pelotaries a little

456
00:15:58,950 --> 00:15:59,950
more.

457
00:16:00,990 --> 00:16:01,989
That's the cover.

458
00:16:01,990 --> 00:16:03,809
We had a surplus in revenue

459
00:16:03,810 --> 00:16:06,089
in the past, and

460
00:16:06,090 --> 00:16:07,909
that's to cover up the last five

461
00:16:07,910 --> 00:16:09,109
months of the year that we won't

462
00:16:09,110 --> 00:16:10,390
have that surplus anymore.

463
00:16:11,690 --> 00:16:13,869
So we'll have to cover the

464
00:16:13,870 --> 00:16:15,329
additional tipping fees, how the

465
00:16:15,330 --> 00:16:16,689
loss revenue and just what the

466
00:16:16,690 --> 00:16:18,569
material is, that extra

467
00:16:18,570 --> 00:16:20,349
money we had in the fund, and then

468
00:16:20,350 --> 00:16:21,869
salaries that weren't covered by

469
00:16:21,870 --> 00:16:22,870
that.

470
00:16:23,450 --> 00:16:24,969
I see, so it's not that the.

471
00:16:24,970 --> 00:16:25,970
Commodity market.

472
00:16:27,040 --> 00:16:29,099
Decrease for like single stream

473
00:16:29,100 --> 00:16:30,119
recycling.

474
00:16:30,120 --> 00:16:32,479
It's just on what are

475
00:16:32,480 --> 00:16:34,419
what we had from last year It's

476
00:16:34,420 --> 00:16:36,119
a it's a combination over the last

477
00:16:36,120 --> 00:16:38,079
year of the commodities tanking

478
00:16:38,080 --> 00:16:40,419
And then losing that

479
00:16:40,420 --> 00:16:42,279
a little extra revenue we had as

480
00:16:42,280 --> 00:16:44,079
as a cushion and then just added

481
00:16:44,080 --> 00:16:46,319
cost Thank

482
00:16:46,320 --> 00:16:46,839
you

483
00:16:46,840 --> 00:16:48,799
And then obviously the biggest part

484
00:16:48,800 --> 00:16:50,619
of this increase, according to the

485
00:16:50,620 --> 00:16:52,819
resolution, is increase in diesel

486
00:16:52,820 --> 00:16:54,859
fuel costs, which are pretty

487
00:16:54,860 --> 00:16:56,079
understandable.

488
00:16:56,080 --> 00:16:57,599
The other part I just wanted to ask

489
00:16:57,600 --> 00:17:00,099
about is salary

490
00:17:00,100 --> 00:17:02,019
savings and the ability

491
00:17:02,020 --> 00:17:03,999
to

492
00:17:04,000 --> 00:17:05,919
meet our target for salary savings.

493
00:17:05,920 --> 00:17:07,598
Could you discuss that a little

494
00:17:07,599 --> 00:17:08,599
more?

495
00:17:09,920 --> 00:17:12,118
Did we simply not have any turnover

496
00:17:12,119 --> 00:17:14,759
in the positions that

497
00:17:14,760 --> 00:17:17,068
are responsible for?

498
00:17:17,069 --> 00:17:18,859
Resource recovery.

499
00:17:18,860 --> 00:17:20,338
Sorry, Alder. Could you repeat that?

500
00:17:20,339 --> 00:17:21,679
I just... Charlie was trying to call

501
00:17:21,680 --> 00:17:22,679
me while you were asking the

502
00:17:22,680 --> 00:17:23,680
question. Oh, okay.

503
00:17:25,119 --> 00:17:26,519
I hope he's not trying to tune in

504
00:17:26,520 --> 00:17:27,739
because you're doing a fine job

505
00:17:27,740 --> 00:17:29,059
answering these questions.

506
00:17:29,060 --> 00:17:30,959
I hope he's trying to jump in.

507
00:17:30,960 --> 00:17:32,819
But anyway, yeah, sorry, Roger.

508
00:17:32,820 --> 00:17:34,539
What I was saying is obviously the

509
00:17:34,540 --> 00:17:35,799
biggest piece of this is the

510
00:17:35,800 --> 00:17:37,559
increased diesel costs, which are

511
00:17:37,560 --> 00:17:39,099
pretty self-explanatory.

512
00:17:39,100 --> 00:17:42,599
The other part was $170,000

513
00:17:42,600 --> 00:17:44,579
projected deficit

514
00:17:44,580 --> 00:17:46,679
due to our salary savings

515
00:17:46,680 --> 00:17:48,639
and the inability to reach

516
00:17:48,640 --> 00:17:50,539
your salary savings target

517
00:17:50,540 --> 00:17:52,699
for these positions.

518
00:17:53,880 --> 00:17:55,759
So I was.

519
00:17:55,760 --> 00:17:57,099
Hoping that you could explain that

520
00:17:57,100 --> 00:17:58,539
elaborate on that a little further.

521
00:17:58,540 --> 00:18:00,239
Is it simply that you've had hardly

522
00:18:00,240 --> 00:18:02,459
any turnover you've done so well in

523
00:18:02,460 --> 00:18:03,819
retaining the employees that are

524
00:18:03,820 --> 00:18:05,639
covered by this special charge or

525
00:18:05,640 --> 00:18:07,539
what exactly do

526
00:18:07,540 --> 00:18:08,540
you attribute that to?

527
00:18:11,070 --> 00:18:13,149
So it's, the salary savings

528
00:18:13,150 --> 00:18:15,149
is hard to do with the RISC

529
00:18:15,150 --> 00:18:17,169
because we only bill actuals

530
00:18:17,170 --> 00:18:18,189
to it.

531
00:18:18,190 --> 00:18:19,509
So unless we were to reduce

532
00:18:19,510 --> 00:18:21,509
services, we can't actually see

533
00:18:21,510 --> 00:18:23,429
a salary savings on that because we

534
00:18:23,430 --> 00:18:25,189
don't need bill actual, and we

535
00:18:25,190 --> 00:18:27,029
didn't cut any services with the

536
00:18:27,030 --> 00:18:28,709
recycling collection.

537
00:18:28,710 --> 00:18:30,289
So we're actually taking that out of

538
00:18:30,290 --> 00:18:32,329
the next, this next budget process

539
00:18:32,330 --> 00:18:33,649
to have a salary savings on

540
00:18:33,650 --> 00:18:34,969
recycling, or at least try to reduce

541
00:18:34,970 --> 00:18:38,169
it. Cause we only build for actuals.

542
00:18:38,170 --> 00:18:40,089
We do have a surplus in salary

543
00:18:40,090 --> 00:18:42,089
savings on the general fund.

544
00:18:42,090 --> 00:18:44,409
We're probably about $300,000

545
00:18:44,410 --> 00:18:46,129
over the target that we're at now

546
00:18:46,130 --> 00:18:47,129
that we are trying to fill open

547
00:18:47,130 --> 00:18:48,769
positions. So we have salary savings

548
00:18:48,770 --> 00:18:49,869
somewhere else.

549
00:18:49,870 --> 00:18:51,589
Just can't make salary savings

550
00:18:51,590 --> 00:18:53,249
without reducing services on the

551
00:18:53,250 --> 00:18:54,250
recycling side.

552
00:18:55,190 --> 00:18:56,269
Thank you.

553
00:18:56,270 --> 00:18:57,929
Yeah, thanks again Roger.

554
00:18:57,930 --> 00:19:00,389
I see their recycling guru Brian is

555
00:19:00,390 --> 00:19:02,129
joined us and engaged as camera

556
00:19:02,130 --> 00:19:03,989
brand did you wish to add

557
00:19:03,990 --> 00:19:05,609
anything especially about my

558
00:19:05,610 --> 00:19:06,889
question about our pellet areas

559
00:19:06,890 --> 00:19:08,809
contract in the single

560
00:19:08,810 --> 00:19:10,649
stream recycling commodities market

561
00:19:10,650 --> 00:19:11,209
or anything

562
00:19:11,210 --> 00:19:12,949
Yeah, with the commodities thing,

563
00:19:12,950 --> 00:19:14,569
really, it's sort of across the

564
00:19:14,570 --> 00:19:15,949
board. I mean, most of what we

565
00:19:15,950 --> 00:19:17,269
recycle is paper products.

566
00:19:17,270 --> 00:19:18,929
So you think cardboard paper stuff

567
00:19:18,930 --> 00:19:21,149
and demand has been soft and

568
00:19:21,150 --> 00:19:23,529
low for that for a while, and then,

569
00:19:23,530 --> 00:19:25,469
and so that's been a big part

570
00:19:25,470 --> 00:19:26,729
of it. Over half of what goes in the

571
00:19:26,730 --> 00:19:28,709
cart is that. So if that value was

572
00:19:28,710 --> 00:19:31,169
very low, that hurts that

573
00:19:31,170 --> 00:19:33,349
material too. Plus just

574
00:19:33,350 --> 00:19:35,229
as it tends to

575
00:19:35,230 --> 00:19:37,109
be where oil prices tend to

576
00:19:37,110 --> 00:19:39,169
be high, plastic prices tend a

577
00:19:39,170 --> 00:19:40,869
track with that. But most of what

578
00:19:41,870 --> 00:19:43,729
By weight in our recycling cart, not

579
00:19:43,730 --> 00:19:45,129
a lot of that are actually plastic

580
00:19:45,130 --> 00:19:46,709
by weight, and that's how you do

581
00:19:46,710 --> 00:19:47,930
recycling, is all by weight.

582
00:19:49,250 --> 00:19:50,589
And plastic is just cheap to

583
00:19:50,590 --> 00:19:51,869
manufacture, too. A lot of people

584
00:19:51,870 --> 00:19:53,549
that even use that are choosing to

585
00:19:53,550 --> 00:19:55,369
use like virgin plastic materials,

586
00:19:55,370 --> 00:19:57,269
as opposed to recycled materials,

587
00:19:57,270 --> 00:19:59,289
because so that's part of that,

588
00:19:59,290 --> 00:20:01,159
too. But. Really a lot of it's that

589
00:20:01,160 --> 00:20:02,119
paper value.

590
00:20:02,120 --> 00:20:03,819
As paper is worth more, that helps

591
00:20:03,820 --> 00:20:05,319
us. When paper is worth less, that

592
00:20:05,320 --> 00:20:06,619
doesn't help us.

593
00:20:06,620 --> 00:20:09,079
And as shipping changes

594
00:20:09,080 --> 00:20:11,539
and as our buying behavior changes,

595
00:20:11,540 --> 00:20:13,499
as the economy shifts around too,

596
00:20:13,500 --> 00:20:15,619
that's kind of where the cardboard

597
00:20:15,620 --> 00:20:17,019
stuff comes in, where all that paper

598
00:20:17,020 --> 00:20:18,519
products really, this is the big

599
00:20:18,520 --> 00:20:19,520
driver of it.

600
00:20:21,340 --> 00:20:22,339
Thank you.

601
00:20:22,340 --> 00:20:23,899
Thanks for explaining that.

602
00:20:23,900 --> 00:20:25,439
Thank you, Mayor, I'm complete.

603
00:20:25,440 --> 00:20:26,699
Thank you, Alder.

604
00:20:26,700 --> 00:20:28,639
Are there any other questions for

605
00:20:28,640 --> 00:20:29,940
staff on item 13?

606
00:20:34,070 --> 00:20:36,029
Seeing none, then item

607
00:20:36,030 --> 00:20:37,689
13 has been moved and seconded.

608
00:20:37,690 --> 00:20:38,690
Is there any discussion?

609
00:20:40,980 --> 00:20:42,799
Seeing no discussion, is there any

610
00:20:42,800 --> 00:20:44,239
objection to recording unanimous

611
00:20:44,240 --> 00:20:45,480
vote in favor of item 13?

612
00:20:47,950 --> 00:20:49,929
Seeing no objection, we'll record a

613
00:20:49,930 --> 00:20:51,929
unanimous vote in favor of item 13.

614
00:20:51,930 --> 00:20:53,589
Thank you, Roger and Brian, for

615
00:20:53,590 --> 00:20:55,130
being here to answer questions.

616
00:20:56,350 --> 00:20:58,529
And that will take us to

617
00:20:58,530 --> 00:21:00,089
item 16.

618
00:21:01,690 --> 00:21:03,509
Item 16 is Legistrar

619
00:21:03,510 --> 00:21:05,509
93981, authorizing

620
00:21:05,510 --> 00:21:07,449
the issuance and establishing the

621
00:21:07,450 --> 00:21:09,329
parameters for the sale of not

622
00:21:09,330 --> 00:21:10,330
to exceed.

623
00:21:11,460 --> 00:21:13,559
A lot of money in general obligation

624
00:21:13,560 --> 00:21:15,398
promissory notes

625
00:21:15,399 --> 00:21:17,199
of the city of Madison, Wisconsin

626
00:21:17,200 --> 00:21:18,839
and directing the final approval of

627
00:21:18,840 --> 00:21:20,299
the terms thereof.

628
00:21:20,300 --> 00:21:21,619
On item 16, can I get a motion

629
00:21:21,620 --> 00:21:22,519
please?

630
00:21:22,520 --> 00:21:23,520
Motion to adopt.

631
00:21:24,300 --> 00:21:25,339
Second.

632
00:21:25,340 --> 00:21:26,759
Moved and seconded to adopt, I

633
00:21:26,760 --> 00:21:28,199
believe staff have a presentation on

634
00:21:28,200 --> 00:21:28,649
this.

635
00:21:28,650 --> 00:21:29,650
Yes. Thank you, Mayor.

636
00:21:38,190 --> 00:21:40,399
It's not a screen.

637
00:21:40,400 --> 00:21:41,679
While we're getting that

638
00:21:41,680 --> 00:21:43,459
presentation set up, I'll just note

639
00:21:43,460 --> 00:21:45,219
for any of the public who may be

640
00:21:45,220 --> 00:21:47,099
watching and wanted to comment

641
00:21:47,100 --> 00:21:48,959
on item one, we did place item one

642
00:21:48,960 --> 00:21:50,879
on the table and we will

643
00:21:50,880 --> 00:21:53,439
return to it and

644
00:21:53,440 --> 00:21:55,099
allow anybody who is in the meeting

645
00:21:55,100 --> 00:21:57,179
at that time to

646
00:21:57,180 --> 00:21:58,819
make their public comment on items

647
00:21:58,820 --> 00:22:00,459
one.

648
00:22:00,460 --> 00:22:02,379
That will be, we have this

649
00:22:02,380 --> 00:22:04,259
item that's before us right now and

650
00:22:04,260 --> 00:22:06,099
one additional item before we come

651
00:22:06,100 --> 00:22:07,700
back to item one.

652
00:22:08,820 --> 00:22:09,820
Go ahead, Dave.

653
00:22:10,520 --> 00:22:11,520
Thank you, Mayor.

654
00:22:12,160 --> 00:22:14,319
So the agenda item before you is

655
00:22:14,320 --> 00:22:16,399
the 2026 GEO

656
00:22:16,400 --> 00:22:18,339
General Obligation Borrowing.

657
00:22:18,340 --> 00:22:19,859
And I'll give you an overview of

658
00:22:19,860 --> 00:22:21,719
that as well as

659
00:22:21,720 --> 00:22:23,719
just a quick summary of

660
00:22:23,720 --> 00:22:25,319
the resolution that's before you

661
00:22:25,320 --> 00:22:26,320
today.

662
00:22:26,799 --> 00:22:28,460
So just a

663
00:22:29,480 --> 00:22:31,339
quick background on what is what

664
00:22:31,340 --> 00:22:33,159
we call GEO borrowing or general

665
00:22:33,160 --> 00:22:34,919
obligation borrowing.

666
00:22:34,920 --> 00:22:36,779
It's either tax exempt under

667
00:22:36,780 --> 00:22:38,819
federal law or taxable borrowing for

668
00:22:38,820 --> 00:22:40,659
10 or 20 years.

669
00:22:40,660 --> 00:22:42,479
And we sell that debt to

670
00:22:42,480 --> 00:22:44,319
finance projects, which are

671
00:22:44,320 --> 00:22:46,659
included in the 2026 adopted

672
00:22:46,660 --> 00:22:47,660
capital budget.

673
00:22:50,120 --> 00:22:51,939
And a state law change a couple

674
00:22:51,940 --> 00:22:53,779
years ago allows us now

675
00:22:53,780 --> 00:22:55,839
to do 20-year promissory

676
00:22:55,840 --> 00:22:56,840
notes,

677
00:22:57,780 --> 00:22:59,679
which prior to that time, we

678
00:22:59,680 --> 00:23:00,779
could only do 10 years.

679
00:23:00,780 --> 00:23:02,479
So that's definitely a benefit.

680
00:23:04,660 --> 00:23:06,559
The capital budget includes both

681
00:23:06,560 --> 00:23:08,719
new projects, as well as

682
00:23:08,720 --> 00:23:10,339
projects that were adopted in prior

683
00:23:10,340 --> 00:23:12,080
budgets and carried forward.

684
00:23:13,700 --> 00:23:15,359
By general obligation, this means

685
00:23:15,360 --> 00:23:17,799
this is a debt of the city and

686
00:23:17,800 --> 00:23:19,699
the city is pledging its

687
00:23:19,700 --> 00:23:22,599
full faith and credit through

688
00:23:22,600 --> 00:23:25,159
authorizing irrevocable

689
00:23:25,160 --> 00:23:27,039
property tax levy to repay

690
00:23:27,040 --> 00:23:29,499
that debt, including interest.

691
00:23:29,500 --> 00:23:31,659
The first property tax levy

692
00:23:31,660 --> 00:23:33,639
to repay this debt will

693
00:23:33,640 --> 00:23:35,619
be the 2026 levy

694
00:23:35,620 --> 00:23:37,439
in December of this year,

695
00:23:37,440 --> 00:23:40,199
which will be due in 2027.

696
00:23:40,200 --> 00:23:42,419
And we do have other city revenues

697
00:23:42,420 --> 00:23:44,379
that pay this besides property

698
00:23:44,380 --> 00:23:46,319
taxes. For example, stormwater

699
00:23:46,320 --> 00:23:48,499
user fees and things like that.

700
00:23:49,660 --> 00:23:51,739
We're issuing about 45%

701
00:23:51,740 --> 00:23:54,839
of the authorized debt.

702
00:23:54,840 --> 00:23:56,679
And a lot of that is due to the

703
00:23:56,680 --> 00:23:58,239
timing of projects.

704
00:23:58,240 --> 00:24:00,099
Tax flow needs for those

705
00:24:00,100 --> 00:24:02,199
individual projects, as well

706
00:24:02,200 --> 00:24:04,179
as requirements under federal tax

707
00:24:04,180 --> 00:24:06,219
law regarding arbitrage, meaning

708
00:24:06,220 --> 00:24:08,119
how much debt we can carry for

709
00:24:08,120 --> 00:24:10,279
how long until we actually spend it.

710
00:24:11,480 --> 00:24:13,639
We're borrowing $142 million of

711
00:24:13,640 --> 00:24:15,799
what we call new money.

712
00:24:15,800 --> 00:24:18,219
And these are the amounts by agency.

713
00:24:18,220 --> 00:24:20,279
The largest is funded from tax

714
00:24:20,280 --> 00:24:22,459
increment districts for

715
00:24:22,460 --> 00:24:24,479
a variety of different things,

716
00:24:24,480 --> 00:24:26,499
both infrastructure as well

717
00:24:26,500 --> 00:24:28,729
as developer loans.

718
00:24:28,730 --> 00:24:30,549
Engineering major streets is the

719
00:24:30,550 --> 00:24:32,849
next largest most prized there

720
00:24:32,850 --> 00:24:34,789
and that fleet services

721
00:24:34,790 --> 00:24:37,049
being vehicle acquisitions

722
00:24:37,050 --> 00:24:39,069
fire as a significant

723
00:24:39,070 --> 00:24:40,729
part of this because of the

724
00:24:40,730 --> 00:24:42,989
borrowing for the new fire station

725
00:24:42,990 --> 00:24:44,909
six that's a part of the park

726
00:24:44,910 --> 00:24:47,369
Badger development.

727
00:24:47,370 --> 00:24:49,349
Then you can see the remaining by

728
00:24:49,350 --> 00:24:50,350
agency.

729
00:24:51,770 --> 00:24:53,829
This borrowing is for about 400

730
00:24:53,830 --> 00:24:55,729
projects or programs

731
00:24:55,730 --> 00:24:57,689
about 20 of those

732
00:24:57,690 --> 00:24:59,829
400 are over one

733
00:24:59,830 --> 00:25:01,069
and a half million dollars and

734
00:25:01,070 --> 00:25:03,529
represent $76 million of

735
00:25:03,530 --> 00:25:05,249
that 142 million.

736
00:25:05,250 --> 00:25:07,309
So, as I said,

737
00:25:07,310 --> 00:25:09,269
the fire station six,

738
00:25:09,270 --> 00:25:11,249
as well as the South Madison Public

739
00:25:11,250 --> 00:25:13,249
Health Clinic,

740
00:25:13,250 --> 00:25:14,589
which are both a part of that Park

741
00:25:14,590 --> 00:25:16,549
Badger development, are the two

742
00:25:16,550 --> 00:25:19,469
largest single projects.

743
00:25:19,470 --> 00:25:21,409
As well as, the recent

744
00:25:21,410 --> 00:25:23,389
property acquisition at Royster

745
00:25:23,390 --> 00:25:24,789
Commons that was approved by the

746
00:25:24,790 --> 00:25:26,969
council, fleet vehicles.

747
00:25:26,970 --> 00:25:28,549
Affordable housing and so on.

748
00:25:31,170 --> 00:25:32,809
This is a history of general

749
00:25:32,810 --> 00:25:34,849
obligation borrowing over

750
00:25:34,850 --> 00:25:37,769
the last roughly 10 years.

751
00:25:37,770 --> 00:25:39,469
You can see it does fluctuate at

752
00:25:39,470 --> 00:25:41,829
times and we

753
00:25:41,830 --> 00:25:43,829
are on an upward trend

754
00:25:43,830 --> 00:25:46,089
with a number of very large building

755
00:25:46,090 --> 00:25:48,789
projects in particular as

756
00:25:48,790 --> 00:25:50,829
I mentioned for this year as

757
00:25:50,830 --> 00:25:52,209
well as upcoming projects.

758
00:25:54,790 --> 00:25:57,489
This is the long-term

759
00:25:57,490 --> 00:25:59,189
interest rates on the city's debt

760
00:25:59,190 --> 00:26:01,409
since 1988.

761
00:26:01,410 --> 00:26:03,769
And you can see how we

762
00:26:03,770 --> 00:26:05,629
remain in a historically,

763
00:26:05,630 --> 00:26:07,709
you know, relatively

764
00:26:07,710 --> 00:26:09,929
low interest rate environment,

765
00:26:09,930 --> 00:26:11,709
but obviously higher than what we

766
00:26:11,710 --> 00:26:13,549
saw post the Great Recession

767
00:26:13,550 --> 00:26:15,449
and fueled,

768
00:26:15,450 --> 00:26:17,309
I think, by what's happening,

769
00:26:17,310 --> 00:26:19,629
both in high inflation

770
00:26:19,630 --> 00:26:21,749
in the economy over the last

771
00:26:21,750 --> 00:26:22,919
few years.

772
00:26:22,920 --> 00:26:25,379
And recent geopolitical events.

773
00:26:25,380 --> 00:26:27,919
So we are seeing some increase

774
00:26:27,920 --> 00:26:29,839
in interest rates and

775
00:26:29,840 --> 00:26:31,979
we do expect interest rates for 2026

776
00:26:31,980 --> 00:26:33,799
to be slightly higher than

777
00:26:33,800 --> 00:26:35,599
what the city received in 2025.

778
00:26:37,400 --> 00:26:39,079
So turning to the resolution that's

779
00:26:39,080 --> 00:26:40,080
before you,

780
00:26:41,540 --> 00:26:43,279
beginning about three years ago, we

781
00:26:43,280 --> 00:26:44,699
moved to what's called a parameters

782
00:26:44,700 --> 00:26:46,579
resolution, meaning we

783
00:26:46,580 --> 00:26:48,539
set up the boundaries for which,

784
00:26:48,540 --> 00:26:50,499
under which we could issue.

785
00:26:50,500 --> 00:26:52,659
The debt, and that allowed us

786
00:26:52,660 --> 00:26:54,499
flexibility in the date upon

787
00:26:54,500 --> 00:26:57,559
which to issue that debt and

788
00:26:57,560 --> 00:26:59,659
get the most favorable

789
00:26:59,660 --> 00:27:01,499
conditions from an

790
00:27:01,500 --> 00:27:03,039
interest rate perspective.

791
00:27:03,040 --> 00:27:04,219
So it does allow the finance

792
00:27:04,220 --> 00:27:06,219
director to carry out the intent as

793
00:27:06,220 --> 00:27:08,219
expressed by the Common Council,

794
00:27:08,220 --> 00:27:10,119
and those have to fall within the

795
00:27:10,120 --> 00:27:11,479
parameters and the resolution.

796
00:27:11,480 --> 00:27:13,259
Many government entities use this

797
00:27:13,260 --> 00:27:15,339
approach, and

798
00:27:15,340 --> 00:27:17,179
what the parameters will be, the

799
00:27:17,180 --> 00:27:19,179
maximum power mount, so the

800
00:27:19,180 --> 00:27:20,179
borrowing there.

801
00:27:20,180 --> 00:27:21,879
The maximum true interest cost,

802
00:27:21,880 --> 00:27:23,379
that's how we compare competitive

803
00:27:23,380 --> 00:27:25,199
bids, and the max amount

804
00:27:25,200 --> 00:27:27,319
of cost of issuance for

805
00:27:27,320 --> 00:27:28,320
the no proceeds.

806
00:27:29,480 --> 00:27:31,549
So So maximum power amount's

807
00:27:31,550 --> 00:27:33,509
about $173 million, as you

808
00:27:33,510 --> 00:27:34,890
see in the title of the resolution.

809
00:27:36,150 --> 00:27:38,289
About 85 million of that is 10-year

810
00:27:38,290 --> 00:27:40,289
borrowing, tax-exempt.

811
00:27:40,290 --> 00:27:42,349
20-Year or borrowing is about 27

812
00:27:42,350 --> 00:27:43,849
million. That's primarily for those

813
00:27:43,850 --> 00:27:45,889
large building projects that I

814
00:27:45,890 --> 00:27:46,809
mentioned.

815
00:27:46,810 --> 00:27:48,189
And then we have about 32 million

816
00:27:48,190 --> 00:27:49,569
that's taxable.

817
00:27:49,570 --> 00:27:51,989
That includes primarily

818
00:27:51,990 --> 00:27:54,529
those types of

819
00:27:54,530 --> 00:27:56,129
borrowing such as for developer

820
00:27:56,130 --> 00:27:57,729
loans under TID.

821
00:27:57,730 --> 00:27:59,769
Affordable housing type of

822
00:27:59,770 --> 00:28:02,249
investments and things

823
00:28:02,250 --> 00:28:04,669
like that that are not eligible for

824
00:28:04,670 --> 00:28:06,769
tax exemption under federal

825
00:28:06,770 --> 00:28:08,429
tax law.

826
00:28:08,430 --> 00:28:10,449
29 million of that 173

827
00:28:10,450 --> 00:28:12,349
million is possible refunding

828
00:28:12,350 --> 00:28:14,429
of already issued debt.

829
00:28:14,430 --> 00:28:16,569
And these are possible opportunities

830
00:28:16,570 --> 00:28:18,429
based on where the

831
00:28:18,430 --> 00:28:20,189
market is right now.

832
00:28:20,190 --> 00:28:22,169
And we

833
00:28:22,170 --> 00:28:24,109
might refund 29 million.

834
00:28:24,110 --> 00:28:25,029
We might.

835
00:28:25,030 --> 00:28:26,909
Refund something less than that or

836
00:28:26,910 --> 00:28:28,969
zero, depending on the market

837
00:28:28,970 --> 00:28:31,089
conditions at the time of sale.

838
00:28:31,090 --> 00:28:32,989
And if we have an economic

839
00:28:32,990 --> 00:28:35,089
savings, sorry,

840
00:28:35,090 --> 00:28:37,270
from that possible refunding.

841
00:28:39,340 --> 00:28:41,499
And then our

842
00:28:41,500 --> 00:28:44,379
maximum true interest cost is

843
00:28:44,380 --> 00:28:46,239
5% on

844
00:28:46,240 --> 00:28:49,059
the tax exempt and

845
00:28:49,060 --> 00:28:51,039
is 6%

846
00:28:51,040 --> 00:28:52,619
on the taxable.

847
00:28:52,620 --> 00:28:54,399
And then, our maximum cost of

848
00:28:54,400 --> 00:28:56,319
issuance is $390,000.

849
00:28:56,320 --> 00:28:57,999
That's for our municipal advising

850
00:28:58,000 --> 00:28:59,979
services, our bond council,

851
00:28:59,980 --> 00:29:01,879
as well as various actions

852
00:29:01,880 --> 00:29:03,339
we have to take to register the

853
00:29:03,340 --> 00:29:04,349
notes.

854
00:29:04,350 --> 00:29:06,689
That parameters authority expires

855
00:29:06,690 --> 00:29:08,469
at the end of this calendar year.

856
00:29:08,470 --> 00:29:10,509
We do expect to sell debt

857
00:29:10,510 --> 00:29:13,429
on August 25th

858
00:29:13,430 --> 00:29:16,029
based on timing to date.

859
00:29:16,030 --> 00:29:17,889
So with that I'll stop sharing.

860
00:29:17,890 --> 00:29:19,089
I'm happy to answer any issues.

861
00:29:20,630 --> 00:29:22,189
Thank you, Director Schmidke.

862
00:29:22,190 --> 00:29:24,049
Are there questions on

863
00:29:24,050 --> 00:29:25,050
item 16?

864
00:29:31,940 --> 00:29:40,120
That we both

865
00:29:44,660 --> 00:29:46,759
take out loans

866
00:29:46,760 --> 00:29:48,399
to fund for street improvement

867
00:29:48,400 --> 00:29:50,799
projects, and there's assessment.

868
00:29:50,800 --> 00:29:52,119
Can you just speak to a little bit

869
00:29:52,120 --> 00:29:53,939
about what the

870
00:29:53,940 --> 00:29:55,859
determining factors are about,

871
00:29:55,860 --> 00:29:57,909
like, what goes

872
00:29:57,910 --> 00:29:59,909
to where, how much do we decide that

873
00:29:59,910 --> 00:30:01,749
is supposed to be for bonds versus

874
00:30:01,750 --> 00:30:03,869
how much is for assessments and

875
00:30:03,870 --> 00:30:06,089
kind of how can

876
00:30:06,090 --> 00:30:07,889
community members get engaged to

877
00:30:07,890 --> 00:30:09,470
understand how this works.

878
00:30:11,350 --> 00:30:13,209
So we probably, I don't

879
00:30:13,210 --> 00:30:14,149
think they're here today.

880
00:30:14,150 --> 00:30:15,869
We probably need city engineering to

881
00:30:15,870 --> 00:30:18,009
speak to that because the

882
00:30:18,010 --> 00:30:21,389
assessment policy determines,

883
00:30:21,390 --> 00:30:24,889
you know, is it curb and gutter,

884
00:30:24,890 --> 00:30:27,069
the extent of the improvements.

885
00:30:27,070 --> 00:30:28,989
And so it's based on the engineering

886
00:30:28,990 --> 00:30:30,969
determination of what's happening in

887
00:30:30,970 --> 00:30:33,009
the roadway that determines

888
00:30:33,010 --> 00:30:34,969
how much of a project will

889
00:30:34,970 --> 00:30:37,669
be funded from special assessments,

890
00:30:37,670 --> 00:30:39,569
how much from city debt.

891
00:30:39,570 --> 00:30:41,389
And depending on where the project

892
00:30:41,390 --> 00:30:43,069
is occurring, there could be other

893
00:30:43,070 --> 00:30:44,689
funding sources involved in the

894
00:30:44,690 --> 00:30:46,549
project, such as federal aid,

895
00:30:47,870 --> 00:30:49,749
state funding, county

896
00:30:49,750 --> 00:30:52,129
funding, other local funding for

897
00:30:52,130 --> 00:30:53,429
that project.

898
00:30:53,430 --> 00:30:55,369
But there is a

899
00:30:55,370 --> 00:30:57,529
city assessment policy that

900
00:30:57,530 --> 00:30:59,469
determines how those costs

901
00:30:59,470 --> 00:31:01,549
are allocated that

902
00:31:01,550 --> 00:31:03,849
was recently updated, and

903
00:31:03,850 --> 00:31:05,669
I believe came before the council,

904
00:31:05,670 --> 00:31:06,809
if I remember correctly.

905
00:31:06,810 --> 00:31:08,839
So, um.

906
00:31:08,840 --> 00:31:10,639
And individuals can see that policy

907
00:31:10,640 --> 00:31:12,599
and obviously, you

908
00:31:12,600 --> 00:31:14,139
know, through the process, the

909
00:31:14,140 --> 00:31:15,899
legislative process, if that is

910
00:31:15,900 --> 00:31:16,900
changed in the future.

911
00:31:21,460 --> 00:31:22,339
Thank you all there.

912
00:31:22,340 --> 00:31:23,459
All there for your questions.

913
00:31:25,360 --> 00:31:26,579
Thank you, Mayor.

914
00:31:26,580 --> 00:31:28,519
Thank you very much, Dave, for the

915
00:31:28,520 --> 00:31:29,479
presentation.

916
00:31:29,480 --> 00:31:31,379
And moreover, thank you for

917
00:31:31,380 --> 00:31:33,279
re-upping for perhaps as much as

918
00:31:33,280 --> 00:31:35,059
another five years or more with us.

919
00:31:35,060 --> 00:31:36,739
We really appreciate that and your

920
00:31:36,740 --> 00:31:37,740
leadership.

921
00:31:38,280 --> 00:31:39,559
My question is,

922
00:31:41,300 --> 00:31:42,719
when the results of the borrowing

923
00:31:42,720 --> 00:31:44,379
exercise this year that you and your

924
00:31:44,380 --> 00:31:46,479
team engaged in

925
00:31:46,480 --> 00:31:48,239
that led then to the number that's

926
00:31:48,240 --> 00:31:50,179
before us in this resolution,

927
00:31:50,180 --> 00:31:51,849
how does that?

928
00:31:51,850 --> 00:31:53,829
How does that number compare to the

929
00:31:53,830 --> 00:31:55,689
adopted 2026 capital

930
00:31:55,690 --> 00:31:57,609
budget and the amount that

931
00:31:57,610 --> 00:31:59,549
we had anticipated

932
00:31:59,550 --> 00:32:01,669
we would need for

933
00:32:01,670 --> 00:32:04,549
for borrowing proceeds last

934
00:32:04,550 --> 00:32:05,550
fall.

935
00:32:06,550 --> 00:32:08,809
It's about 45%

936
00:32:08,810 --> 00:32:11,029
of the authorized

937
00:32:11,030 --> 00:32:12,829
borrowing. So that's both the new

938
00:32:12,830 --> 00:32:14,569
borrowing that was authorized in the

939
00:32:14,570 --> 00:32:16,389
2026 budget as well as

940
00:32:16,390 --> 00:32:18,469
amounts carried forward from prior

941
00:32:18,470 --> 00:32:19,470
capital budgets.

942
00:32:21,010 --> 00:32:22,129
Thank you.

943
00:32:22,130 --> 00:32:23,269
And how does that compare

944
00:32:23,270 --> 00:32:25,129
historically, would you say,

945
00:32:25,130 --> 00:32:26,569
to, I don't know. That's roughly

946
00:32:26,570 --> 00:32:26,969
where we.

947
00:32:26,970 --> 00:32:29,109
Been each year is

948
00:32:29,110 --> 00:32:31,329
around 45 to 50 percent

949
00:32:31,330 --> 00:32:33,229
for the reasons I mentioned in

950
00:32:33,230 --> 00:32:35,429
the presentation which include

951
00:32:35,430 --> 00:32:37,529
you know just timing of projects

952
00:32:37,530 --> 00:32:40,829
these are multi-year projects

953
00:32:40,830 --> 00:32:42,669
we don't want to borrow too soon

954
00:32:42,670 --> 00:32:44,529
for projects because of federal

955
00:32:44,530 --> 00:32:46,569
tax law arbitrage requirements

956
00:32:46,570 --> 00:32:48,529
and things like

957
00:32:48,530 --> 00:32:50,489
that so the projects could be

958
00:32:50,490 --> 00:32:52,529
delayed for a number of different

959
00:32:52,530 --> 00:32:54,429
reasons and that's why

960
00:32:54,430 --> 00:32:56,679
we have to continue to carry over.

961
00:32:56,680 --> 00:32:58,619
That authorization from one

962
00:32:58,620 --> 00:32:59,620
year to the next.

963
00:33:00,820 --> 00:33:02,199
Thank you very much.

964
00:33:02,200 --> 00:33:03,639
You're welcome. Thank you, Mayor.

965
00:33:03,640 --> 00:33:04,899
Thank you, Alder.

966
00:33:04,900 --> 00:33:06,199
Are there any other questions for

967
00:33:06,200 --> 00:33:07,800
staff on item 16?

968
00:33:10,220 --> 00:33:11,919
Seeing none, it's been moved and

969
00:33:11,920 --> 00:33:12,999
seconded. Is there any discussion?

970
00:33:15,650 --> 00:33:17,289
Seeing no discussion then is there

971
00:33:17,290 --> 00:33:19,009
any objection to recording unanimous

972
00:33:19,010 --> 00:33:20,770
vote in favor of item 16?

973
00:33:22,450 --> 00:33:23,749
Seeing no objection we'll record

974
00:33:23,750 --> 00:33:25,469
that unanimous vote and that will

975
00:33:25,470 --> 00:33:28,429
take us to item 18.

976
00:33:28,430 --> 00:33:31,529
Item 18 is legislator 94055

977
00:33:33,730 --> 00:33:35,809
which is the mid-year appropriation

978
00:33:35,810 --> 00:33:38,029
resolution amending the 2026

979
00:33:38,030 --> 00:33:40,329
adopted operating budget by

980
00:33:40,330 --> 00:33:42,329
taking a number of different actions

981
00:33:42,330 --> 00:33:45,199
and amending

982
00:33:45,200 --> 00:33:46,699
Yes, taking a number of different

983
00:33:46,700 --> 00:33:47,879
actions, which we are about to have

984
00:33:47,880 --> 00:33:49,379
a presentation on.

985
00:33:49,380 --> 00:33:51,579
So I will not read the whole thing.

986
00:33:51,580 --> 00:33:53,419
But first on item 18,

987
00:33:53,420 --> 00:33:55,259
can I get a motion please?

988
00:33:55,260 --> 00:33:56,839
Motion to adopt.

989
00:33:56,840 --> 00:33:57,819
Second.

990
00:33:57,820 --> 00:34:00,398
Moved and seconded to adopt item 18.

991
00:34:00,399 --> 00:34:03,179
And I believe this one will be

992
00:34:03,180 --> 00:34:04,280
budget director Christine Koh.

993
00:34:06,460 --> 00:34:08,919
Hi, everyone. Good afternoon.

994
00:34:08,920 --> 00:34:09,959
Um, as the mayor mentioned, this

995
00:34:09,960 --> 00:34:11,939
item has a lot going on in it.

996
00:34:11,940 --> 00:34:14,439
So the presentation, um,

997
00:34:14,440 --> 00:34:16,119
this evening will provide a high

998
00:34:16,120 --> 00:34:17,919
level overview of our projection

999
00:34:17,920 --> 00:34:19,879
process as well as the

1000
00:34:19,880 --> 00:34:21,238
actions recommended through the

1001
00:34:21,239 --> 00:34:22,239
resolution.

1002
00:34:27,820 --> 00:34:28,609
Thank you. At the end of the

1003
00:34:28,610 --> 00:34:30,629
presentation, we'll also have

1004
00:34:30,630 --> 00:34:32,569
Metro General Manager Jamie Acton

1005
00:34:32,570 --> 00:34:34,609
provide some more context

1006
00:34:34,610 --> 00:34:36,968
on the projection for

1007
00:34:36,969 --> 00:34:38,309
Metro specifically.

1008
00:34:38,310 --> 00:34:40,149
So I'll run through my slides,

1009
00:34:40,150 --> 00:34:42,109
transition to Jamie and we

1010
00:34:42,110 --> 00:34:44,029
can decide if we wanna stop for

1011
00:34:44,030 --> 00:34:46,229
questions before or wait for

1012
00:34:46,230 --> 00:34:48,089
the whole presentation to

1013
00:34:48,090 --> 00:34:49,090
be complete.

1014
00:34:49,850 --> 00:34:52,309
So there are two main components to

1015
00:34:52,310 --> 00:34:54,369
the slides. The first is explaining

1016
00:34:54,370 --> 00:34:56,919
how we create the major projections.

1017
00:34:56,920 --> 00:34:58,699
And then a review of what is in the

1018
00:34:58,700 --> 00:34:59,760
resolution itself.

1019
00:35:01,440 --> 00:35:03,199
One important thing to note is that

1020
00:35:03,200 --> 00:35:05,059
the budget projection is

1021
00:35:05,060 --> 00:35:06,899
based on a point in time analysis

1022
00:35:06,900 --> 00:35:08,719
of projecting spending through the

1023
00:35:08,720 --> 00:35:10,459
end of the year.

1024
00:35:10,460 --> 00:35:12,399
So on June 1st, we pull

1025
00:35:12,400 --> 00:35:14,419
data for all of the actual

1026
00:35:14,420 --> 00:35:16,259
expenditures through May

1027
00:35:16,260 --> 00:35:18,279
31st and prepare

1028
00:35:18,280 --> 00:35:20,779
data for the projection process.

1029
00:35:20,780 --> 00:35:22,179
It takes us about a week to prepare

1030
00:35:22,180 --> 00:35:23,519
all of this data.

1031
00:35:23,520 --> 00:35:25,369
We send it to agencies.

1032
00:35:25,370 --> 00:35:26,809
And then there's about a two-week

1033
00:35:26,810 --> 00:35:28,909
period where our budget

1034
00:35:28,910 --> 00:35:31,289
analyst team and agency analysts

1035
00:35:31,290 --> 00:35:33,769
are independently completing

1036
00:35:33,770 --> 00:35:35,769
their projections to estimate how

1037
00:35:35,770 --> 00:35:37,829
they're going to end the year.

1038
00:35:37,830 --> 00:35:39,729
And then after this two-

1039
00:35:39,730 --> 00:35:41,589
week process, the budget

1040
00:35:41,590 --> 00:35:42,949
analyst meets with every single

1041
00:35:42,950 --> 00:35:45,209
agency in the city to

1042
00:35:45,210 --> 00:35:47,249
discuss their assumptions

1043
00:35:47,250 --> 00:35:49,169
and finalize projections that

1044
00:35:49,170 --> 00:35:51,089
takes about two weeks, plus

1045
00:35:51,090 --> 00:35:52,929
or minus, depending

1046
00:35:52,930 --> 00:35:54,529
on availability.

1047
00:35:54,530 --> 00:35:56,429
And then it takes us as

1048
00:35:56,430 --> 00:35:58,629
a team about an additional two weeks

1049
00:35:58,630 --> 00:36:00,509
to compile the citywide

1050
00:36:00,510 --> 00:36:01,510
resolution.

1051
00:36:02,850 --> 00:36:04,949
So, I

1052
00:36:04,950 --> 00:36:07,489
put all this out because there

1053
00:36:07,490 --> 00:36:09,369
is a bit of a lag in what the

1054
00:36:09,370 --> 00:36:10,370
data represents,

1055
00:36:11,690 --> 00:36:13,689
what's not included, and

1056
00:36:13,690 --> 00:36:15,329
it really is based on a point in

1057
00:36:15,330 --> 00:36:17,030
time for the first five months.

1058
00:36:18,510 --> 00:36:20,429
And given staff capacity, how

1059
00:36:20,430 --> 00:36:21,729
long it takes to do the detailed

1060
00:36:21,730 --> 00:36:23,069
analysis, coordinating with

1061
00:36:23,070 --> 00:36:24,499
agencies, it just.

1062
00:36:24,500 --> 00:36:26,379
Does take almost a full two

1063
00:36:26,380 --> 00:36:28,019
months to produce this resolution.

1064
00:36:29,140 --> 00:36:30,959
So please keep that in mind as you

1065
00:36:30,960 --> 00:36:32,119
see any of the numbers.

1066
00:36:34,520 --> 00:36:36,239
This table provides a high-level

1067
00:36:36,240 --> 00:36:38,239
summary of the projection for the

1068
00:36:38,240 --> 00:36:39,240
general fund.

1069
00:36:41,779 --> 00:36:43,659
In the columns, we have

1070
00:36:43,660 --> 00:36:45,679
the budget at different phases, so

1071
00:36:45,680 --> 00:36:48,199
we have the 26 adopted budget,

1072
00:36:48,200 --> 00:36:49,919
the revised budget, which reflects

1073
00:36:49,920 --> 00:36:52,159
any transfers or legislative

1074
00:36:52,160 --> 00:36:53,679
files that have been approved to

1075
00:36:53,680 --> 00:36:55,619
date, our estimation

1076
00:36:55,620 --> 00:36:57,119
for the mid-year projection based on

1077
00:36:57,120 --> 00:36:58,479
this collaborative process with

1078
00:36:58,480 --> 00:37:00,319
agencies, and then the

1079
00:37:00,320 --> 00:37:02,079
difference, which is the major

1080
00:37:02,080 --> 00:37:02,909
production.

1081
00:37:02,910 --> 00:37:04,590
Minus the revised budget.

1082
00:37:06,960 --> 00:37:08,699
And then negative numbers typically

1083
00:37:08,700 --> 00:37:10,619
indicate where

1084
00:37:10,620 --> 00:37:12,639
we're either underspending in

1085
00:37:12,640 --> 00:37:16,299
expenses or overperforming

1086
00:37:16,300 --> 00:37:17,239
in revenues.

1087
00:37:17,240 --> 00:37:19,759
And then for the

1088
00:37:19,760 --> 00:37:21,719
rows, we have our general fund

1089
00:37:21,720 --> 00:37:23,579
revenues, property taxes,

1090
00:37:23,580 --> 00:37:25,439
and our total general fund revenues

1091
00:37:25,440 --> 00:37:27,679
for the first three rows.

1092
00:37:27,680 --> 00:37:29,539
And then the second section in

1093
00:37:29,540 --> 00:37:31,899
the bottom, it reflects our

1094
00:37:31,900 --> 00:37:32,900
expenses.

1095
00:37:33,620 --> 00:37:35,499
So I'll go into

1096
00:37:35,500 --> 00:37:37,929
this. More detail on

1097
00:37:37,930 --> 00:37:39,469
subsequent slides, but for general

1098
00:37:39,470 --> 00:37:41,549
fund revenues, we're projecting to

1099
00:37:41,550 --> 00:37:43,209
overperform or have more revenues

1100
00:37:43,210 --> 00:37:45,649
than budgeted due to a number of

1101
00:37:45,650 --> 00:37:48,429
areas where we

1102
00:37:48,430 --> 00:37:50,449
anticipate receiving more

1103
00:37:50,450 --> 00:37:52,389
local revenue than the budget.

1104
00:37:52,390 --> 00:37:54,469
This is primarily related to

1105
00:37:54,470 --> 00:37:57,629
ambulance billing and

1106
00:37:57,630 --> 00:37:58,630
building

1107
00:37:59,610 --> 00:38:01,409
building revenues.

1108
00:38:02,770 --> 00:38:04,469
Property taxes we budget at

1109
00:38:06,100 --> 00:38:08,359
So, in total,

1110
00:38:08,360 --> 00:38:12,299
our revenues are about $767,000

1111
00:38:12,300 --> 00:38:13,400
above what we projected.

1112
00:38:14,600 --> 00:38:16,239
In terms of agency expenses,

1113
00:38:17,280 --> 00:38:19,519
our total agency expenses.

1114
00:38:19,520 --> 00:38:21,319
We present certain revenues are

1115
00:38:21,320 --> 00:38:22,779
presented in the agency budgets and

1116
00:38:22,780 --> 00:38:24,939
we look at the net of agency

1117
00:38:24,940 --> 00:38:27,239
revenues and expenditures

1118
00:38:27,240 --> 00:38:29,459
to do our projections, and

1119
00:38:29,460 --> 00:38:31,139
that's also how we build our budget.

1120
00:38:31,140 --> 00:38:32,519
And when you take these numbers

1121
00:38:32,520 --> 00:38:33,520
together.

1122
00:38:34,440 --> 00:38:37,059
In total agencies are

1123
00:38:37,060 --> 00:38:38,979
projecting to underspend by about

1124
00:38:38,980 --> 00:38:40,159
$4 million.

1125
00:38:40,160 --> 00:38:42,059
So, this combination of

1126
00:38:42,060 --> 00:38:43,659
overperforming revenues,

1127
00:38:43,660 --> 00:38:45,979
underspending in

1128
00:38:45,980 --> 00:38:48,059
expenses leads to a

1129
00:38:48,060 --> 00:38:49,939
projected surplus of about $4.5

1130
00:38:49,940 --> 00:38:50,940
million.

1131
00:38:51,440 --> 00:38:53,379
And that's really just taking

1132
00:38:53,380 --> 00:38:55,699
this total revenues number

1133
00:38:55,700 --> 00:38:57,120
plus total expenses.

1134
00:39:00,919 --> 00:39:03,619
And the footnote is just a technical

1135
00:39:03,620 --> 00:39:05,559
note about how we factor

1136
00:39:05,560 --> 00:39:06,979
in carried forward encumbrances.

1137
00:39:06,980 --> 00:39:07,979
I'm not going to get into that

1138
00:39:07,980 --> 00:39:09,059
detail right this second.

1139
00:39:12,170 --> 00:39:15,169
So, just looking at the high-level

1140
00:39:15,170 --> 00:39:16,989
summary for

1141
00:39:16,990 --> 00:39:20,489
general fund expenses, in total,

1142
00:39:20,490 --> 00:39:22,429
expenses, net of agency revenues are

1143
00:39:22,430 --> 00:39:24,749
projecting about $4 million below

1144
00:39:24,750 --> 00:39:25,750
budget.

1145
00:39:27,490 --> 00:39:29,349
If we just look at it,

1146
00:39:29,350 --> 00:39:30,829
something also to remember about the

1147
00:39:30,830 --> 00:39:33,189
budget is that we have a

1148
00:39:33,190 --> 00:39:34,489
budget for what we call direct

1149
00:39:34,490 --> 00:39:36,209
appropriations, which is where we

1150
00:39:36,210 --> 00:39:38,299
centrally budget for costs

1151
00:39:38,300 --> 00:39:39,849
that are difficult to allocate

1152
00:39:39,850 --> 00:39:41,509
specifically to agencies.

1153
00:39:41,510 --> 00:39:43,429
So that includes things like our

1154
00:39:43,430 --> 00:39:45,369
contingent reserve, payments

1155
00:39:45,370 --> 00:39:47,409
for comp absence escrow, which is

1156
00:39:47,410 --> 00:39:49,409
sick leave payout for retirees,

1157
00:39:49,410 --> 00:39:51,129
and some other miscellaneous

1158
00:39:51,130 --> 00:39:52,969
benefits and costs that are really

1159
00:39:52,970 --> 00:39:54,869
benefiting the whole of

1160
00:39:54,870 --> 00:39:55,870
the city.

1161
00:39:56,870 --> 00:39:59,189
If we exclude direct appropriations

1162
00:39:59,190 --> 00:40:01,949
and only look at agency budgets,

1163
00:40:01,950 --> 00:40:03,369
agencies are actually projecting to

1164
00:40:03,370 --> 00:40:05,029
overspend by a little over a million

1165
00:40:05,030 --> 00:40:06,030
dollars.

1166
00:40:06,690 --> 00:40:08,869
This overspent is driven by

1167
00:40:08,870 --> 00:40:10,589
a few things.

1168
00:40:10,590 --> 00:40:12,609
The largest item being personnel

1169
00:40:12,610 --> 00:40:14,649
cost being about three

1170
00:40:14,650 --> 00:40:15,949
million over budget.

1171
00:40:15,950 --> 00:40:17,449
And when I speak about personnel, I

1172
00:40:17,450 --> 00:40:19,310
mean both salaries and benefits.

1173
00:40:21,230 --> 00:40:22,409
This three million dollars over

1174
00:40:22,410 --> 00:40:24,309
budget is a combination of various

1175
00:40:24,310 --> 00:40:25,309
factors.

1176
00:40:25,310 --> 00:40:28,409
One is it includes the

1177
00:40:28,410 --> 00:40:30,209
COMPAPS disaster repayments.

1178
00:40:30,210 --> 00:40:31,689
When they are made they hit the

1179
00:40:31,690 --> 00:40:33,349
agency budgets and then at the year

1180
00:40:33,350 --> 00:40:35,169
end they

1181
00:40:35,170 --> 00:40:36,269
show up as an actual in the agency

1182
00:40:36,270 --> 00:40:38,169
budget. We budget for it in

1183
00:40:38,170 --> 00:40:40,089
direct appropriations and in

1184
00:40:40,090 --> 00:40:42,009
our year end resolution we

1185
00:40:42,010 --> 00:40:42,909
make a transfer from direct

1186
00:40:42,910 --> 00:40:45,149
appropriations to the agency.

1187
00:40:45,150 --> 00:40:47,269
But until we know the full cost we

1188
00:40:47,270 --> 00:40:48,849
don't make this transfer.

1189
00:40:48,850 --> 00:40:50,789
So it appears to be a deficit in the

1190
00:40:50,790 --> 00:40:52,619
Agency. When we really do have

1191
00:40:52,620 --> 00:40:54,619
another pocket of money to cover

1192
00:40:54,620 --> 00:40:55,539
those expenses.

1193
00:40:55,540 --> 00:40:56,699
So that's a portion of this $3

1194
00:40:56,700 --> 00:40:57,700
million.

1195
00:40:58,360 --> 00:41:00,259
In addition, starting with

1196
00:41:00,260 --> 00:41:02,219
the 2024 budget, we implemented

1197
00:41:02,220 --> 00:41:03,979
what we call budget efficiency cuts

1198
00:41:03,980 --> 00:41:06,919
that were 1% in

1199
00:41:06,920 --> 00:41:09,019
24 and 25 and

1200
00:41:09,020 --> 00:41:12,139
0.75% in 2026.

1201
00:41:12,140 --> 00:41:14,239
We budget for this in

1202
00:41:14,240 --> 00:41:16,339
this kind of overall

1203
00:41:16,340 --> 00:41:18,859
budget reduction in personnel.

1204
00:41:18,860 --> 00:41:20,919
Because most people recognize

1205
00:41:20,920 --> 00:41:22,799
that savings through salary savings

1206
00:41:22,800 --> 00:41:24,559
and turnover.

1207
00:41:24,560 --> 00:41:26,379
However, agencies may actually

1208
00:41:26,380 --> 00:41:27,559
achieve that savings by

1209
00:41:27,560 --> 00:41:29,219
underspending and purchase services,

1210
00:41:29,220 --> 00:41:30,300
supplies, or somewhere else.

1211
00:41:32,300 --> 00:41:33,599
So, personnel cost being over budget

1212
00:41:33,600 --> 00:41:36,319
is somewhat overstated because

1213
00:41:36,320 --> 00:41:37,859
they're achieving, agencies may be

1214
00:41:37,860 --> 00:41:39,899
achieving savings in non-personal

1215
00:41:39,900 --> 00:41:42,139
objects and they also might be

1216
00:41:42,140 --> 00:41:43,579
showing the full Comfy Absence

1217
00:41:43,580 --> 00:41:44,979
escrow costs that will be covered

1218
00:41:44,980 --> 00:41:46,360
through a year-end transfer.

1219
00:41:47,550 --> 00:41:49,509
So, that's

1220
00:41:49,510 --> 00:41:50,510
the personnel side.

1221
00:41:51,730 --> 00:41:53,349
For non-personal items, agency

1222
00:41:53,350 --> 00:41:55,649
budgets as a whole are

1223
00:41:55,650 --> 00:41:57,389
projecting to be about two million

1224
00:41:57,390 --> 00:41:59,709
under budget in purchase services.

1225
00:41:59,710 --> 00:42:01,569
And this is mostly related to

1226
00:42:01,570 --> 00:42:03,629
the timing of multi-year software

1227
00:42:03,630 --> 00:42:05,449
agreements and prepaid

1228
00:42:05,450 --> 00:42:07,069
expenses. So, there's a pretty

1229
00:42:07,070 --> 00:42:09,549
significant underspend in

1230
00:42:09,550 --> 00:42:11,529
the IT budget, for example, and

1231
00:42:11,530 --> 00:42:13,629
a number of other agencies where

1232
00:42:13,630 --> 00:42:15,349
agencies may have prepaid a full.

1233
00:42:28,899 --> 00:42:31,699
So, for

1234
00:42:31,700 --> 00:42:38,200
example,

1235
00:42:41,280 --> 00:42:42,409
if you look at We project

1236
00:42:42,410 --> 00:42:44,829
Concabson's escrow at zero because

1237
00:42:44,830 --> 00:42:46,929
the agents, again, the actual

1238
00:42:46,930 --> 00:42:48,529
costs are hitting in the agencies,

1239
00:42:48,530 --> 00:42:50,469
so it's reflected in this top

1240
00:42:50,470 --> 00:42:51,470
number.

1241
00:42:51,910 --> 00:42:53,989
We also typically

1242
00:42:53,990 --> 00:42:55,989
project contingent reserve

1243
00:42:55,990 --> 00:42:57,449
at zero.

1244
00:42:57,450 --> 00:42:59,209
This year, there is a small actual

1245
00:42:59,210 --> 00:43:01,109
and contingent reserve based on an

1246
00:43:01,110 --> 00:43:03,249
earlier resolution to fund the

1247
00:43:03,250 --> 00:43:05,089
continuation of the MADCAP customer

1248
00:43:05,090 --> 00:43:06,669
assistance program for the utilities

1249
00:43:06,670 --> 00:43:08,389
through general fund money.

1250
00:43:08,390 --> 00:43:10,209
And that moved $70,000 from

1251
00:43:10,210 --> 00:43:11,549
the general fund to various

1252
00:43:11,550 --> 00:43:12,550
utilities.

1253
00:43:13,750 --> 00:43:15,589
So, when you add these two

1254
00:43:15,590 --> 00:43:16,889
numbers together, agency

1255
00:43:16,890 --> 00:43:17,890
overspending

1256
00:43:19,770 --> 00:43:21,289
plus underspending and direct

1257
00:43:21,290 --> 00:43:23,369
appropriations, we get to this $4

1258
00:43:23,370 --> 00:43:25,609
million of budget

1259
00:43:25,610 --> 00:43:27,749
of underspend across

1260
00:43:27,750 --> 00:43:28,750
the general funds.

1261
00:43:33,230 --> 00:43:34,809
In terms of general fund revenues, I

1262
00:43:34,810 --> 00:43:36,049
mentioned there are a number of

1263
00:43:36,050 --> 00:43:38,309
areas where

1264
00:43:38,310 --> 00:43:40,329
revenues are performing higher

1265
00:43:40,330 --> 00:43:41,370
than budget.

1266
00:43:44,330 --> 00:43:46,609
For context of the projection,

1267
00:43:46,610 --> 00:43:48,949
the 26th budget included about $2.2

1268
00:43:48,950 --> 00:43:50,989
million in fund balance applied to

1269
00:43:50,990 --> 00:43:52,969
close the budget gap and

1270
00:43:52,970 --> 00:43:54,689
buy down the property tax levy.

1271
00:43:54,690 --> 00:43:56,309
The projection actually assumes

1272
00:43:56,310 --> 00:43:58,249
using $0 in fund balanced

1273
00:43:58,250 --> 00:44:00,229
due to the strong performance in

1274
00:44:00,230 --> 00:44:01,689
other revenues.

1275
00:44:01,690 --> 00:44:03,569
So we project fund balance at zero.

1276
00:44:03,570 --> 00:44:05,169
And the areas that are making up for

1277
00:44:05,170 --> 00:44:06,549
that are really in ambulance

1278
00:44:06,550 --> 00:44:08,609
charges, where we're getting

1279
00:44:08,610 --> 00:44:10,709
1.9 million above

1280
00:44:10,710 --> 00:44:12,809
budget due to changes in Medicaid

1281
00:44:12,810 --> 00:44:15,009
billings and how

1282
00:44:15,010 --> 00:44:16,909
we're collecting for those

1283
00:44:16,910 --> 00:44:17,849
costs.

1284
00:44:17,850 --> 00:44:19,149
And then in building permits, which

1285
00:44:19,150 --> 00:44:20,689
are projecting about 1.1 million

1286
00:44:20,690 --> 00:44:21,869
above-budget.

1287
00:44:21,870 --> 00:44:23,589
A lot of this is related to

1288
00:44:23,590 --> 00:44:25,789
construction, related

1289
00:44:25,790 --> 00:44:27,409
to the spring hailstorms.

1290
00:44:29,930 --> 00:44:31,789
And prior mid-year resolutions,

1291
00:44:31,790 --> 00:44:33,729
we may have adjusted the

1292
00:44:33,730 --> 00:44:35,929
interest numbers based on trends.

1293
00:44:35,930 --> 00:44:37,289
Right now, the projection projects

1294
00:44:37,290 --> 00:44:39,189
interest at budget, which is

1295
00:44:39,190 --> 00:44:40,789
about $15.2 million.

1296
00:44:40,790 --> 00:44:42,409
So we have narrowed in on that

1297
00:44:42,410 --> 00:44:44,209
number a little bit.

1298
00:44:44,210 --> 00:44:45,809
So we're keeping it at budget for

1299
00:44:45,810 --> 00:44:47,110
the purpose of this projection.

1300
00:44:51,400 --> 00:44:53,319
Um, so going a little

1301
00:44:53,320 --> 00:44:55,019
bit more in depth into agency

1302
00:44:55,020 --> 00:44:57,019
projections, um, if you've been part

1303
00:44:57,020 --> 00:44:58,759
of this committee before, you may

1304
00:44:58,760 --> 00:45:00,459
have seen slides where I have, you

1305
00:45:00,460 --> 00:45:02,619
know, 10 slides that

1306
00:45:02,620 --> 00:45:04,179
copying and pasting tables from an

1307
00:45:04,180 --> 00:45:06,819
Excel file, it's, um

1308
00:45:06,820 --> 00:45:08,679
that shows changes

1309
00:45:08,680 --> 00:45:09,539
by agency.

1310
00:45:09,540 --> 00:45:11,579
So this year,

1311
00:45:11,580 --> 00:45:12,759
instead of, you now, copying and

1312
00:45:12,760 --> 00:45:14,839
paste as images, I've attached

1313
00:45:14,840 --> 00:45:16,979
that agency analysis

1314
00:45:16,980 --> 00:45:18,959
as an Excel file.

1315
00:45:18,960 --> 00:45:21,019
To the Legistar file to make it

1316
00:45:21,020 --> 00:45:23,039
more accessible and easier to

1317
00:45:23,040 --> 00:45:24,040
use.

1318
00:45:24,620 --> 00:45:26,619
So I'm just going to pull

1319
00:45:26,620 --> 00:45:28,519
that up here.

1320
00:45:29,860 --> 00:45:31,719
And the way that this table is

1321
00:45:31,720 --> 00:45:33,339
set up, it shows all of our general

1322
00:45:33,340 --> 00:45:34,340
fund agencies.

1323
00:45:35,320 --> 00:45:37,119
Functional area is just how we group

1324
00:45:37,120 --> 00:45:38,799
agencies in the budget, so all the

1325
00:45:38,800 --> 00:45:40,299
admin agencies.

1326
00:45:40,300 --> 00:45:42,659
If you like to

1327
00:45:42,660 --> 00:45:44,119
play with data, create pivot tables,

1328
00:45:44,120 --> 00:45:46,039
you can group this on your

1329
00:45:46,040 --> 00:45:47,159
own. So we have our different.

1330
00:45:49,370 --> 00:45:51,029
Categories for functional areas.

1331
00:45:51,030 --> 00:45:52,969
We have our agencies

1332
00:45:52,970 --> 00:45:54,849
And then the columns are mostly the

1333
00:45:54,850 --> 00:45:56,629
same as the table i presented on one

1334
00:45:56,630 --> 00:45:57,829
of the first slides where we have

1335
00:45:57,830 --> 00:45:59,669
the original budget revised

1336
00:45:59,670 --> 00:46:01,589
budget actuals

1337
00:46:01,590 --> 00:46:03,709
projections And then, the variance

1338
00:46:03,710 --> 00:46:04,949
is the difference between our

1339
00:46:04,950 --> 00:46:06,929
projection and revised

1340
00:46:06,930 --> 00:46:08,879
budget In this

1341
00:46:08,880 --> 00:46:10,999
presentation, any positive number

1342
00:46:11,000 --> 00:46:13,279
is showing where an agency is

1343
00:46:13,280 --> 00:46:15,119
going to be under budget and

1344
00:46:15,120 --> 00:46:16,959
essentially generating a surplus,

1345
00:46:16,960 --> 00:46:18,479
and a negative number is where an

1346
00:46:18,480 --> 00:46:20,819
agency is over budget.

1347
00:46:20,820 --> 00:46:22,659
And then I have

1348
00:46:22,660 --> 00:46:25,419
a number of

1349
00:46:25,420 --> 00:46:27,379
comments related to the

1350
00:46:27,380 --> 00:46:29,779
major drivers of

1351
00:46:29,780 --> 00:46:30,780
these variances.

1352
00:46:32,460 --> 00:46:34,459
So I'm not, I'm just

1353
00:46:34,460 --> 00:46:35,499
gonna hide some of these. I'm not

1354
00:46:35,500 --> 00:46:37,199
gonna go through every single item

1355
00:46:37,200 --> 00:46:38,819
right now.

1356
00:46:38,820 --> 00:46:40,920
But just to illustrate,

1357
00:46:43,540 --> 00:46:45,099
Assessor is projected to be under

1358
00:46:45,100 --> 00:46:48,119
budget by about $353,000.

1359
00:46:48,120 --> 00:46:49,919
That's really because they've had

1360
00:46:49,920 --> 00:46:51,819
two vacancies for much of the

1361
00:46:51,820 --> 00:46:54,219
year. Those salaries and benefits,

1362
00:46:54,220 --> 00:46:56,039
along with some other items, make

1363
00:46:56,040 --> 00:46:58,439
up the majority of

1364
00:46:58,440 --> 00:47:00,359
this underspend.

1365
00:47:00,360 --> 00:47:02,099
They're expecting a slight overage

1366
00:47:02,100 --> 00:47:03,979
in non-personnel for costs like

1367
00:47:03,980 --> 00:47:05,819
postage, transcription, and other

1368
00:47:05,820 --> 00:47:07,859
costs. So, the resolution does

1369
00:47:07,860 --> 00:47:09,419
include an intradepartmental

1370
00:47:09,420 --> 00:47:10,579
transfer where they're taking some

1371
00:47:10,580 --> 00:47:12,019
of their salary savings and applying

1372
00:47:12,020 --> 00:47:13,900
it to these non-personal items.

1373
00:47:16,060 --> 00:47:17,739
Again, areas where you see

1374
00:47:17,740 --> 00:47:19,759
underspending a lot of this,

1375
00:47:19,760 --> 00:47:21,599
in the example of the attorney,

1376
00:47:21,600 --> 00:47:23,179
is related to being over budget and

1377
00:47:23,180 --> 00:47:25,139
personnel. And this is a combination

1378
00:47:25,140 --> 00:47:26,140
of.

1379
00:47:32,760 --> 00:47:34,579
And there's also like

1380
00:47:34,580 --> 00:47:36,499
a payroll allocation issue in the

1381
00:47:36,500 --> 00:47:38,299
attorney's office where staff time

1382
00:47:38,300 --> 00:47:40,099
wasn't being charged correctly to

1383
00:47:40,100 --> 00:47:41,839
tids and capital projects.

1384
00:47:41,840 --> 00:47:42,959
So that's a technical issue that

1385
00:47:42,960 --> 00:47:44,939
will be cleaned up before the end of

1386
00:47:44,940 --> 00:47:45,940
the year.

1387
00:47:49,320 --> 00:47:50,699
So you can read through these

1388
00:47:50,700 --> 00:47:52,039
comments. I'll highlight a few

1389
00:47:52,040 --> 00:47:53,919
because areas where

1390
00:47:53,920 --> 00:47:55,040
we have a big number.

1391
00:47:56,240 --> 00:47:58,159
The clerk's budget is projecting

1392
00:47:58,160 --> 00:48:00,459
to be over budget by about

1393
00:48:00,460 --> 00:48:02,599
$900,000.

1394
00:48:02,600 --> 00:48:04,639
About half of this is related to

1395
00:48:04,640 --> 00:48:06,739
being over budget and personnel.

1396
00:48:06,740 --> 00:48:08,779
This is due to higher uses

1397
00:48:08,780 --> 00:48:10,599
of hourlies and election officials

1398
00:48:10,600 --> 00:48:12,599
to cover capacity due to vacation

1399
00:48:12,600 --> 00:48:14,099
and turnover.

1400
00:48:14,100 --> 00:48:16,059
I think last year the budget

1401
00:48:16,060 --> 00:48:17,939
was being developed when there

1402
00:48:17,940 --> 00:48:19,399
was a lot of transition in the

1403
00:48:19,400 --> 00:48:20,599
clerk's office, so we didn't

1404
00:48:20,600 --> 00:48:22,579
adequately budget for supplies

1405
00:48:22,580 --> 00:48:25,019
and counting all

1406
00:48:25,020 --> 00:48:26,999
of the elections scheduled this

1407
00:48:27,000 --> 00:48:28,219
year.

1408
00:48:28,220 --> 00:48:29,919
And then related to purchase

1409
00:48:29,920 --> 00:48:31,879
services, the

1410
00:48:31,880 --> 00:48:33,179
agency is projecting to be over

1411
00:48:33,180 --> 00:48:35,379
budget because of

1412
00:48:35,380 --> 00:48:37,239
a new lease

1413
00:48:37,240 --> 00:48:39,179
for equipment for a facility

1414
00:48:39,180 --> 00:48:41,479
to store election equipment related

1415
00:48:41,480 --> 00:48:42,799
to construction of the Dean County

1416
00:48:42,800 --> 00:48:44,099
Election Center.

1417
00:48:44,100 --> 00:48:46,679
That project was known, but the

1418
00:48:46,680 --> 00:48:48,699
lease costs were not known.

1419
00:48:48,700 --> 00:48:49,999
There's a resolution on that item

1420
00:48:50,000 --> 00:48:51,819
recently that was adopted by the

1421
00:48:51,820 --> 00:48:53,639
council, so we need to

1422
00:48:53,640 --> 00:48:54,640
fund to that.

1423
00:48:57,460 --> 00:48:59,539
IT, I mentioned, has a surplus

1424
00:48:59,540 --> 00:49:00,899
of about 1.1 million.

1425
00:49:00,900 --> 00:49:02,739
This is the largest surplus of

1426
00:49:02,740 --> 00:49:04,859
any of the general fund agencies.

1427
00:49:04,860 --> 00:49:07,579
And this is a combination of having

1428
00:49:07,580 --> 00:49:09,279
a kind of above average number of

1429
00:49:09,280 --> 00:49:10,679
vacancies for the first half of the

1430
00:49:10,680 --> 00:49:12,819
year that IT is taking steps to

1431
00:49:12,820 --> 00:49:13,829
fill.

1432
00:49:13,830 --> 00:49:15,949
Um, and a pretty

1433
00:49:15,950 --> 00:49:17,089
significant under being

1434
00:49:17,090 --> 00:49:18,349
significantly under budget and

1435
00:49:18,350 --> 00:49:20,169
purchase services Related to

1436
00:49:20,170 --> 00:49:22,009
the timing of software costs and

1437
00:49:22,010 --> 00:49:24,069
prepaid expenses that

1438
00:49:24,070 --> 00:49:27,089
were paid in 24 and 25

1439
00:49:27,090 --> 00:49:29,349
um There was a change in

1440
00:49:29,350 --> 00:49:31,389
um in in gas b rules about

1441
00:49:31,390 --> 00:49:33,069
how to account for these software

1442
00:49:33,070 --> 00:49:35,299
costs We didn't fully

1443
00:49:35,300 --> 00:49:36,999
have understand the impacts of this

1444
00:49:37,000 --> 00:49:37,799
in future budgets.

1445
00:49:37,800 --> 00:49:39,859
So we carried forward more cost in

1446
00:49:39,860 --> 00:49:42,479
IT than we needed to in 26.

1447
00:49:42,480 --> 00:49:43,939
So they're showing as being

1448
00:49:43,940 --> 00:49:45,139
significantly under budget.

1449
00:49:48,130 --> 00:49:50,269
A few other items,

1450
00:49:50,270 --> 00:49:52,009
police, again, at the time of the

1451
00:49:52,010 --> 00:49:54,709
projection, which used data through

1452
00:49:54,710 --> 00:49:56,769
the end of May,

1453
00:49:56,770 --> 00:49:58,589
was projecting to be

1454
00:49:58,590 --> 00:50:01,509
over budget by about $750,000.

1455
00:50:01,510 --> 00:50:03,449
And this could – this

1456
00:50:03,450 --> 00:50:05,449
is fully attributable to cognizance

1457
00:50:05,450 --> 00:50:06,450
escrow costs.

1458
00:50:07,590 --> 00:50:09,149
There were a number of line items

1459
00:50:09,150 --> 00:50:11,169
that were projecting over or

1460
00:50:11,170 --> 00:50:14,069
under budget, but

1461
00:50:14,070 --> 00:50:16,709
– This deficit amount is related to

1462
00:50:16,710 --> 00:50:18,329
retiree payouts that would have been

1463
00:50:18,330 --> 00:50:19,689
covered through the year and

1464
00:50:19,690 --> 00:50:20,690
transfer.

1465
00:50:22,590 --> 00:50:24,909
And then one other item that's

1466
00:50:24,910 --> 00:50:26,989
somewhat unusually large is the

1467
00:50:26,990 --> 00:50:28,329
deficit and traffic engineering.

1468
00:50:30,920 --> 00:50:32,779
They were over budget and personnel

1469
00:50:32,780 --> 00:50:34,619
due to comp absence escrow as well

1470
00:50:34,620 --> 00:50:35,999
as not meeting the salary savings

1471
00:50:36,000 --> 00:50:37,000
target.

1472
00:50:37,660 --> 00:50:40,159
The 2026 budget,

1473
00:50:40,160 --> 00:50:42,319
we increased their salary savings

1474
00:50:42,320 --> 00:50:44,659
above the standard 3%

1475
00:50:44,660 --> 00:50:46,499
average because the agency had

1476
00:50:46,500 --> 00:50:48,499
been having consistent and

1477
00:50:48,500 --> 00:50:50,499
persistent vacancy rates.

1478
00:50:50,500 --> 00:50:52,639
So we kind of made a one-time

1479
00:50:52,640 --> 00:50:54,619
adjustment to salary savings to

1480
00:50:54,620 --> 00:50:56,679
increase that, lower their personnel

1481
00:50:56,680 --> 00:50:59,119
budget, and use that money to

1482
00:50:59,120 --> 00:51:00,519
reallocate with a non-personnel

1483
00:51:00,520 --> 00:51:01,459
cost.

1484
00:51:01,460 --> 00:51:03,459
This year, they've been able

1485
00:51:03,460 --> 00:51:05,719
to staff up and do not have the

1486
00:51:05,720 --> 00:51:08,319
very high salary savings rates,

1487
00:51:08,320 --> 00:51:09,899
which is resulting in an

1488
00:51:09,900 --> 00:51:10,960
agency-level deficit.

1489
00:51:13,320 --> 00:51:15,099
So I'm, again, not going to talk

1490
00:51:15,100 --> 00:51:16,679
through every agency.

1491
00:51:16,680 --> 00:51:18,339
I think I talked about everyone that

1492
00:51:18,340 --> 00:51:20,379
is 500,000 or

1493
00:51:20,380 --> 00:51:21,439
more.

1494
00:51:21,440 --> 00:51:23,359
And if people have any specific

1495
00:51:23,360 --> 00:51:24,719
questions, I'm happy to go back to

1496
00:51:24,720 --> 00:51:25,960
this during the question portion.

1497
00:51:29,350 --> 00:51:30,350
Um.

1498
00:51:32,370 --> 00:51:34,409
The resolution also,

1499
00:51:34,410 --> 00:51:36,389
we do have a projection for

1500
00:51:36,390 --> 00:51:37,889
every single agency, including the

1501
00:51:37,890 --> 00:51:40,129
non-general fund agencies.

1502
00:51:40,130 --> 00:51:41,949
So I've pulled a few highlights that

1503
00:51:41,950 --> 00:51:43,429
are specific to action items

1504
00:51:43,430 --> 00:51:45,369
included in the resolution itself.

1505
00:51:45,370 --> 00:51:47,509
I'm not including every single

1506
00:51:47,510 --> 00:51:50,289
non- general fund agency.

1507
00:51:50,290 --> 00:51:52,589
In the summary fleet

1508
00:51:52,590 --> 00:51:55,789
service is projecting to be $161,000

1509
00:51:55,790 --> 00:51:57,449
over budget and purchase services

1510
00:51:57,450 --> 00:51:59,089
for vehicle repairs and maintenance.

1511
00:51:59,090 --> 00:52:01,479
They are.

1512
00:52:01,480 --> 00:52:03,659
A little bit under budget in

1513
00:52:03,660 --> 00:52:05,739
personnel costs and can

1514
00:52:05,740 --> 00:52:08,099
fund this over budget amount through

1515
00:52:08,100 --> 00:52:10,219
an intra-departmental transfer.

1516
00:52:10,220 --> 00:52:11,619
One area that we have been watching

1517
00:52:11,620 --> 00:52:13,699
with fleet is their fuel costs.

1518
00:52:13,700 --> 00:52:15,939
And while these costs are

1519
00:52:15,940 --> 00:52:17,779
above budget, there is enough

1520
00:52:17,780 --> 00:52:19,759
savings in other objects

1521
00:52:19,760 --> 00:52:21,499
within the salaries, within the

1522
00:52:21,500 --> 00:52:22,500
supplies category,

1523
00:52:23,860 --> 00:52:25,179
that they're able to absorb higher

1524
00:52:25,180 --> 00:52:26,180
fuel costs,

1525
00:52:27,460 --> 00:52:28,460
golf.

1526
00:52:29,040 --> 00:52:31,019
Similar to the last several

1527
00:52:31,020 --> 00:52:33,279
years is projecting

1528
00:52:33,280 --> 00:52:35,259
higher activities

1529
00:52:35,260 --> 00:52:37,619
and higher revenues than budgeted.

1530
00:52:37,620 --> 00:52:39,599
So the resolution increases

1531
00:52:39,600 --> 00:52:41,759
our overall budget from facility

1532
00:52:41,760 --> 00:52:45,159
rentals and greens fees by $245,000

1533
00:52:45,160 --> 00:52:47,079
offset by higher expenses.

1534
00:52:48,640 --> 00:52:50,239
Library is projecting to end the

1535
00:52:50,240 --> 00:52:51,459
year about half a million dollar

1536
00:52:51,460 --> 00:52:53,239
over budget and this This is related

1537
00:52:53,240 --> 00:52:54,360
to a number of things.

1538
00:52:56,250 --> 00:52:58,149
Primarily related to their personnel

1539
00:52:58,150 --> 00:52:59,669
costs.

1540
00:52:59,670 --> 00:53:02,029
There was a large reclassification

1541
00:53:02,030 --> 00:53:03,909
for positions that was

1542
00:53:03,910 --> 00:53:05,629
adopted by the council a few months

1543
00:53:05,630 --> 00:53:07,409
ago that included significant back

1544
00:53:07,410 --> 00:53:08,929
pay. This wasn't fully built into

1545
00:53:08,930 --> 00:53:09,930
their budget.

1546
00:53:10,610 --> 00:53:12,489
There's lower vacancy rates in prior

1547
00:53:12,490 --> 00:53:13,490
years.

1548
00:53:14,230 --> 00:53:16,489
And while we did our best,

1549
00:53:16,490 --> 00:53:18,489
they also have hired the budgeted

1550
00:53:18,490 --> 00:53:19,709
absence escrow, which is paid

1551
00:53:19,710 --> 00:53:20,969
through the library fund, not

1552
00:53:20,970 --> 00:53:22,649
through the general fund director

1553
00:53:22,650 --> 00:53:24,139
appropriations amount.

1554
00:53:24,140 --> 00:53:26,019
And there were also a number of

1555
00:53:26,020 --> 00:53:28,359
costs related to the Imagination

1556
00:53:28,360 --> 00:53:30,699
Center that weren't

1557
00:53:30,700 --> 00:53:32,999
fully included in 2026, like

1558
00:53:33,000 --> 00:53:34,959
collections processing fees.

1559
00:53:34,960 --> 00:53:36,979
I think we did our best to

1560
00:53:36,980 --> 00:53:39,039
estimate that cost, but as the

1561
00:53:39,040 --> 00:53:40,219
project has moved forward there have

1562
00:53:40,220 --> 00:53:43,239
been some items that have come

1563
00:53:43,240 --> 00:53:44,559
up as needs in this year.

1564
00:53:46,800 --> 00:53:48,719
Metro is projecting a 4.2

1565
00:53:48,720 --> 00:53:49,939
million deficit.

1566
00:53:49,940 --> 00:53:51,979
That's a combination of revenues

1567
00:53:51,980 --> 00:53:53,899
being lower than budgeted

1568
00:53:53,900 --> 00:53:55,619
and expenses being higher than

1569
00:53:55,620 --> 00:53:57,299
budget. So it's not just that

1570
00:53:57,300 --> 00:53:59,659
they're overspending by this amount.

1571
00:53:59,660 --> 00:54:01,299
It's a combinations of factors.

1572
00:54:01,300 --> 00:54:03,039
And as I mentioned, Jamie will

1573
00:54:03,040 --> 00:54:04,879
provide a more in-depth

1574
00:54:04,880 --> 00:54:07,559
presentation on this item

1575
00:54:07,560 --> 00:54:09,419
after I go through my slides.

1576
00:54:11,840 --> 00:54:13,779
And I'll kind of leave the

1577
00:54:13,780 --> 00:54:14,780
details for that portion.

1578
00:54:17,040 --> 00:54:19,659
The streets agency

1579
00:54:19,660 --> 00:54:21,599
includes multiple funds,

1580
00:54:21,600 --> 00:54:23,719
so they are a majority of

1581
00:54:23,720 --> 00:54:25,579
their budget is in the general fund,

1582
00:54:25,580 --> 00:54:27,759
but they also have separate

1583
00:54:27,760 --> 00:54:29,619
budgets for resource

1584
00:54:29,620 --> 00:54:31,139
recovery, urban forestry,

1585
00:54:31,140 --> 00:54:32,140
stormwater.

1586
00:54:32,700 --> 00:54:34,539
So as discussed with

1587
00:54:34,540 --> 00:54:36,220
an earlier agenda item,

1588
00:54:37,840 --> 00:54:39,659
the RRC budget is projecting

1589
00:54:39,660 --> 00:54:41,479
a deficit of about half a

1590
00:54:41,480 --> 00:54:42,419
million dollars.

1591
00:54:42,420 --> 00:54:44,159
It's a combination of revenues.

1592
00:54:46,070 --> 00:54:48,090
Hire diesel on personnel expenses.

1593
00:54:49,590 --> 00:54:51,669
And earlier in this meeting,

1594
00:54:51,670 --> 00:54:53,149
this committee took action on that

1595
00:54:53,150 --> 00:54:54,269
item.

1596
00:54:54,270 --> 00:54:55,929
And all of the other enterprise

1597
00:54:55,930 --> 00:54:57,329
funds are projecting to meet budget

1598
00:54:57,330 --> 00:54:58,829
targets and not require any

1599
00:54:58,830 --> 00:54:59,830
transfers at this time.

1600
00:55:02,620 --> 00:55:03,679
Okay, so that was a lot of

1601
00:55:03,680 --> 00:55:05,139
information. What exactly does the

1602
00:55:05,140 --> 00:55:06,360
mid-year resolution do?

1603
00:55:08,080 --> 00:55:09,559
Six main components.

1604
00:55:09,560 --> 00:55:11,219
Some of these are very technical in

1605
00:55:11,220 --> 00:55:12,519
nature and are things that we do

1606
00:55:12,520 --> 00:55:14,619
every year to transfer money from

1607
00:55:14,620 --> 00:55:16,439
a central pot to an

1608
00:55:16,440 --> 00:55:17,779
agency.

1609
00:55:17,780 --> 00:55:20,039
Some of them are

1610
00:55:20,040 --> 00:55:22,639
larger issues.

1611
00:55:22,640 --> 00:55:23,939
So I'll run through each of these

1612
00:55:23,940 --> 00:55:24,940
six components.

1613
00:55:25,840 --> 00:55:27,780
The first is transferring funds.

1614
00:55:29,880 --> 00:55:31,939
From for carry forward encumbrances

1615
00:55:31,940 --> 00:55:33,599
for contracts that span multiple

1616
00:55:33,600 --> 00:55:34,879
years.

1617
00:55:34,880 --> 00:55:36,179
The second component is making

1618
00:55:36,180 --> 00:55:37,859
intra-departmental transfers to

1619
00:55:37,860 --> 00:55:39,919
cover deficits in major categories.

1620
00:55:39,920 --> 00:55:41,759
So this is where an agency is

1621
00:55:41,760 --> 00:55:43,279
projecting to be over budget in one

1622
00:55:43,280 --> 00:55:45,119
area, but they can cover that

1623
00:55:45,120 --> 00:55:47,079
by moving money across objects.

1624
00:55:48,660 --> 00:55:50,519
Number three is appropriating half

1625
00:55:50,520 --> 00:55:51,879
a million dollars from contingent

1626
00:55:51,880 --> 00:55:53,899
reserve to agency budgets to cover

1627
00:55:53,900 --> 00:55:55,879
projected deficits.

1628
00:55:55,880 --> 00:55:57,499
Number four is increasing budget

1629
00:55:57,500 --> 00:55:59,559
authority for Metro Transit.

1630
00:55:59,560 --> 00:56:01,699
And five and six are more technical

1631
00:56:01,700 --> 00:56:03,319
in nature where we're making other

1632
00:56:03,320 --> 00:56:04,999
appropriations and transfers and

1633
00:56:05,000 --> 00:56:06,440
amendments to the capital budget.

1634
00:56:09,010 --> 00:56:10,589
Right, so number one, this is more

1635
00:56:10,590 --> 00:56:11,729
of a technical item.

1636
00:56:13,050 --> 00:56:14,969
Incumbencies that are outstanding

1637
00:56:14,970 --> 00:56:16,769
at the year end can be carried

1638
00:56:16,770 --> 00:56:18,869
forward into the next year.

1639
00:56:18,870 --> 00:56:20,569
This happens a lot with services

1640
00:56:20,570 --> 00:56:23,209
that span multiple years.

1641
00:56:23,210 --> 00:56:25,269
So an agency might have

1642
00:56:25,270 --> 00:56:26,729
started a contract at the end of

1643
00:56:26,730 --> 00:56:27,730
2025.

1644
00:56:30,030 --> 00:56:31,689
That purchase order encumbrance is

1645
00:56:31,690 --> 00:56:33,549
carried forward into a 26, and

1646
00:56:33,550 --> 00:56:35,449
there is a

1647
00:56:35,450 --> 00:56:37,489
transfer to the budget and

1648
00:56:37,490 --> 00:56:39,369
their agency budget to increase

1649
00:56:39,370 --> 00:56:41,129
their overall budget authority to

1650
00:56:41,130 --> 00:56:42,350
recognize this carry forward.

1651
00:56:43,410 --> 00:56:44,590
In the general fund,

1652
00:56:45,930 --> 00:56:48,649
we had $356,000

1653
00:56:48,650 --> 00:56:50,229
in carry forward encumbrances across

1654
00:56:50,230 --> 00:56:51,779
multiple agencies.

1655
00:56:51,780 --> 00:56:53,379
We do budget for this in direct

1656
00:56:53,380 --> 00:56:54,159
appropriations.

1657
00:56:54,160 --> 00:56:55,899
We have $400,000.

1658
00:56:55,900 --> 00:56:57,739
So this resolution is

1659
00:56:57,740 --> 00:56:59,579
a technical adjustment to move the

1660
00:56:59,580 --> 00:57:00,679
budget authority from direct

1661
00:57:00,680 --> 00:57:02,359
appropriation to the agency's

1662
00:57:02,360 --> 00:57:03,360
incurring costs.

1663
00:57:04,360 --> 00:57:06,079
And then in the library fund and

1664
00:57:06,080 --> 00:57:07,080
public health fund,

1665
00:57:08,660 --> 00:57:10,539
there are most

1666
00:57:10,540 --> 00:57:12,199
funds do have some level of carry

1667
00:57:12,200 --> 00:57:13,200
forward encumbrance.

1668
00:57:14,780 --> 00:57:16,259
For the library fun and public

1669
00:57:16,260 --> 00:57:18,159
health, we're proposing transfers to

1670
00:57:18,160 --> 00:57:20,029
increase budget authority.

1671
00:57:20,030 --> 00:57:21,949
For this amount and using

1672
00:57:21,950 --> 00:57:23,649
fund balance applied to cover this

1673
00:57:23,650 --> 00:57:25,009
expense.

1674
00:57:25,010 --> 00:57:26,949
For the library, it's about

1675
00:57:26,950 --> 00:57:28,069
$29,000.

1676
00:57:28,070 --> 00:57:29,829
This is mostly related to the timing

1677
00:57:29,830 --> 00:57:31,709
of private donations and

1678
00:57:31,710 --> 00:57:33,249
expenses related to services

1679
00:57:33,250 --> 00:57:34,250
offered.

1680
00:57:35,090 --> 00:57:36,549
In public health, this is a larger

1681
00:57:36,550 --> 00:57:37,550
amount,

1682
00:57:38,610 --> 00:57:41,069
$430,000,

1683
00:57:41,070 --> 00:57:43,069
and public health has sufficient

1684
00:57:43,070 --> 00:57:44,150
fund balance to cover this.

1685
00:57:47,660 --> 00:57:50,039
The second item is,

1686
00:57:50,040 --> 00:57:51,979
again,

1687
00:57:51,980 --> 00:57:53,979
intra-agency transfers, so agencies

1688
00:57:53,980 --> 00:57:55,879
that have underspending in one area

1689
00:57:55,880 --> 00:57:58,219
can propose transfers across

1690
00:57:58,220 --> 00:57:59,719
what we call major expenditure

1691
00:57:59,720 --> 00:58:01,539
categories, so moving money from

1692
00:58:01,540 --> 00:58:04,679
supplies to salaries or

1693
00:58:04,680 --> 00:58:06,759
benefits to purchase services.

1694
00:58:06,760 --> 00:58:08,579
So this is a pretty

1695
00:58:08,580 --> 00:58:10,459
modest number

1696
00:58:10,460 --> 00:58:12,319
that reflects just cleaning

1697
00:58:12,320 --> 00:58:14,339
up the budget and it up to where

1698
00:58:14,340 --> 00:58:15,519
agencies are actually spending

1699
00:58:15,520 --> 00:58:16,579
money.

1700
00:58:16,580 --> 00:58:18,799
So, I've mentioned the

1701
00:58:18,800 --> 00:58:20,499
assessor having higher non-personnel

1702
00:58:20,500 --> 00:58:22,899
costs, so they're moving $25,000

1703
00:58:22,900 --> 00:58:24,439
from salaries to supplies and

1704
00:58:24,440 --> 00:58:25,440
services.

1705
00:58:26,000 --> 00:58:27,299
Civil rights is proposing

1706
00:58:27,300 --> 00:58:29,159
transferring $20,000 from

1707
00:58:29,160 --> 00:58:31,159
benefits to translation and

1708
00:58:31,160 --> 00:58:32,919
interpretation services.

1709
00:58:32,920 --> 00:58:34,859
And traffic engineering is proposing

1710
00:58:34,860 --> 00:58:36,879
moving $38,000 for benefits

1711
00:58:36,880 --> 00:58:39,499
to supplies and services,

1712
00:58:39,500 --> 00:58:40,939
and then I mentioned in the fleet

1713
00:58:40,940 --> 00:58:41,779
fund ...

1714
00:58:41,780 --> 00:58:43,759
They are projecting over budget

1715
00:58:43,760 --> 00:58:45,779
for vehicle repairs and maintenance,

1716
00:58:45,780 --> 00:58:47,819
but have enough savings from

1717
00:58:47,820 --> 00:58:49,399
salaries and benefits to cover that

1718
00:58:49,400 --> 00:58:50,400
cost at this time.

1719
00:58:53,830 --> 00:58:55,749
There are two areas

1720
00:58:55,750 --> 00:58:58,809
where we are proposing transferring

1721
00:58:58,810 --> 00:59:00,509
money from contingent reserve to

1722
00:59:00,510 --> 00:59:02,409
agency budgets, and this is areas

1723
00:59:02,410 --> 00:59:04,469
where an agency is

1724
00:59:04,470 --> 00:59:06,349
projecting to be over budget

1725
00:59:06,350 --> 00:59:09,249
in a non-personnel major,

1726
00:59:09,250 --> 00:59:11,769
and with non-personal items,

1727
00:59:11,770 --> 00:59:13,389
the agency will hit a budget stop

1728
00:59:13,390 --> 00:59:15,589
that will not allow them to

1729
00:59:15,590 --> 00:59:17,409
spend beyond their budget.

1730
00:59:17,410 --> 00:59:19,489
So, these are cases where

1731
00:59:19,490 --> 00:59:21,529
agencies really need to transfer.

1732
00:59:21,530 --> 00:59:23,209
From contingent reserve to be able

1733
00:59:23,210 --> 00:59:25,229
to continue providing the level of

1734
00:59:25,230 --> 00:59:26,709
services expected for the remainder

1735
00:59:26,710 --> 00:59:27,710
of the year.

1736
00:59:29,600 --> 00:59:31,839
These transfers are

1737
00:59:31,840 --> 00:59:34,139
for the clerk's office, addressing

1738
00:59:34,140 --> 00:59:36,299
the budget stops in

1739
00:59:36,300 --> 00:59:38,139
supplies and services

1740
00:59:38,140 --> 00:59:39,499
related to election supplies.

1741
00:59:39,500 --> 00:59:41,319
So that's moving 400,000 from

1742
00:59:41,320 --> 00:59:42,980
Continent Reserve to clerk's Office.

1743
00:59:44,060 --> 00:59:45,459
And with engineering transferring

1744
00:59:45,460 --> 00:59:47,459
$100,000 to

1745
00:59:47,460 --> 00:59:49,119
the budget for facility maintenance

1746
00:59:49,120 --> 00:59:50,120
supplies,

1747
00:59:51,160 --> 00:59:52,539
engineering has been seeing higher

1748
00:59:52,540 --> 00:59:54,459
costs for plumbing, HVAC,

1749
00:59:54,460 --> 00:59:56,489
other tools

1750
00:59:56,490 --> 00:59:58,609
Or related to inflation for

1751
00:59:58,610 --> 00:59:59,869
several years.

1752
00:59:59,870 --> 01:00:02,089
They've typically had enough salary

1753
01:00:02,090 --> 01:00:03,529
savings to be able to handle this

1754
01:00:03,530 --> 01:00:04,669
through an interdepartmental

1755
01:00:04,670 --> 01:00:05,649
transfer.

1756
01:00:05,650 --> 01:00:07,229
And as I've mentioned with several

1757
01:00:07,230 --> 01:00:08,329
other agencies,

1758
01:00:09,890 --> 01:00:11,389
they don't have the level of vacancy

1759
01:00:11,390 --> 01:00:12,809
that they used to have.

1760
01:00:12,810 --> 01:00:14,629
So they would need a transfer

1761
01:00:14,630 --> 01:00:16,389
from elsewhere to cover this cost.

1762
01:00:19,360 --> 01:00:21,359
Um metro transit i'm

1763
01:00:21,360 --> 01:00:22,919
going to very briefly talk about

1764
01:00:22,920 --> 01:00:24,739
this and then um, jamie will

1765
01:00:24,740 --> 01:00:26,659
go into more details But

1766
01:00:26,660 --> 01:00:28,239
the mid-year projection estimate

1767
01:00:28,240 --> 01:00:30,419
estimates metro will have a deficit

1768
01:00:30,420 --> 01:00:32,939
of 4.2 million dollars and

1769
01:00:32,940 --> 01:00:35,119
this is a combination of

1770
01:00:36,140 --> 01:00:37,999
Revenues coming in below budget

1771
01:00:38,000 --> 01:00:39,959
and expenses being higher than

1772
01:00:39,960 --> 01:00:42,119
budget The

1773
01:00:42,120 --> 01:00:44,159
resolution itself does not

1774
01:00:44,160 --> 01:00:45,160
address the full

1775
01:00:46,190 --> 01:00:48,569
projected gap of $4.2 million.

1776
01:00:48,570 --> 01:00:50,009
What it does instead is really

1777
01:00:50,010 --> 01:00:51,429
focuses on the areas,

1778
01:00:52,710 --> 01:00:54,129
the non-personnel accounts that

1779
01:00:54,130 --> 01:00:55,929
would hit a budget stop.

1780
01:00:55,930 --> 01:00:58,289
So what we're doing is increasing

1781
01:00:58,290 --> 01:01:00,029
the supplies for budget and purchase

1782
01:01:00,030 --> 01:01:02,029
services by about $3

1783
01:01:02,030 --> 01:01:04,009
million collectively and using

1784
01:01:04,010 --> 01:01:05,469
a fund balance applied account as

1785
01:01:05,470 --> 01:01:07,409
the revenue source to balance

1786
01:01:07,410 --> 01:01:08,779
the transfer.

1787
01:01:08,780 --> 01:01:10,859
And this allows Metro to

1788
01:01:10,860 --> 01:01:12,299
continue providing their services

1789
01:01:12,300 --> 01:01:14,359
without hitting budget stops.

1790
01:01:14,360 --> 01:01:16,299
It allows us to refine the

1791
01:01:16,300 --> 01:01:18,699
projection throughout the

1792
01:01:18,700 --> 01:01:20,219
rest of the year.

1793
01:01:20,220 --> 01:01:21,959
It allows Metro to evaluate

1794
01:01:21,960 --> 01:01:24,639
available federal sources,

1795
01:01:24,640 --> 01:01:26,759
and the year-end

1796
01:01:26,760 --> 01:01:28,059
resolution will have a lot more

1797
01:01:28,060 --> 01:01:31,099
information about addressing the

1798
01:01:31,100 --> 01:01:33,459
full, the full

1799
01:01:33,460 --> 01:01:34,460
metro gap.

1800
01:01:35,640 --> 01:01:37,179
And then I have.

1801
01:01:37,180 --> 01:01:38,819
Two more slides that are more

1802
01:01:38,820 --> 01:01:39,639
technical in nature.

1803
01:01:39,640 --> 01:01:40,799
So I'm going to address them quickly

1804
01:01:40,800 --> 01:01:42,679
and then I'll pause and we can see

1805
01:01:42,680 --> 01:01:44,239
if you want to keep going with Jamie

1806
01:01:44,240 --> 01:01:45,839
or you want ask some general

1807
01:01:45,840 --> 01:01:47,040
questions first.

1808
01:01:48,620 --> 01:01:50,839
So category five is kind of our

1809
01:01:50,840 --> 01:01:52,659
everything else bucket of other

1810
01:01:52,660 --> 01:01:53,940
appropriations and transfers.

1811
01:01:55,260 --> 01:01:57,579
So in a number of areas,

1812
01:01:57,580 --> 01:02:00,039
this is recognizing higher

1813
01:02:00,040 --> 01:02:01,899
revenues or grant revenues that

1814
01:02:01,900 --> 01:02:03,419
were not included in the adopted

1815
01:02:03,420 --> 01:02:05,719
budget. And

1816
01:02:05,720 --> 01:02:07,839
appropriating those revenues and

1817
01:02:07,840 --> 01:02:09,159
expenses.

1818
01:02:09,160 --> 01:02:11,119
So for golf, golf

1819
01:02:11,120 --> 01:02:12,399
continues to have strong

1820
01:02:12,400 --> 01:02:14,039
performance. We are increasing their

1821
01:02:14,040 --> 01:02:15,919
revenues and associated expenses

1822
01:02:15,920 --> 01:02:17,999
for the services they

1823
01:02:18,000 --> 01:02:19,000
offer.

1824
01:02:19,820 --> 01:02:21,739
Fire department had

1825
01:02:21,740 --> 01:02:24,019
a

1826
01:02:24,020 --> 01:02:26,219
large grant in

1827
01:02:26,220 --> 01:02:28,199
state funding or

1828
01:02:28,200 --> 01:02:30,669
EMS funding assistance program

1829
01:02:30,670 --> 01:02:32,179
that was not included in their

1830
01:02:32,180 --> 01:02:34,100
budget. So this appropriates

1831
01:02:35,930 --> 01:02:37,949
$854,000 in revenues

1832
01:02:37,950 --> 01:02:39,869
and increases supplies and purchase

1833
01:02:39,870 --> 01:02:41,549
services.

1834
01:02:41,550 --> 01:02:43,329
And parking similarly had a grant

1835
01:02:43,330 --> 01:02:45,329
from WisDOT that

1836
01:02:45,330 --> 01:02:46,729
they applied for and received, but

1837
01:02:46,730 --> 01:02:48,169
was never recognized in their

1838
01:02:48,170 --> 01:02:50,129
budget. So it increases

1839
01:02:50,130 --> 01:02:52,049
their budget for grant

1840
01:02:52,050 --> 01:02:53,649
funds and reserves applied for their

1841
01:02:53,650 --> 01:02:56,149
local match and increases

1842
01:02:56,150 --> 01:02:57,530
their consulting expenses.

1843
01:02:58,870 --> 01:03:00,089
And then there's, I've mentioned

1844
01:03:00,090 --> 01:03:02,199
Madcap a little bit in terms of

1845
01:03:02,200 --> 01:03:04,499
the earlier appropriation from

1846
01:03:04,500 --> 01:03:06,339
contingent reserve to the utilities.

1847
01:03:09,120 --> 01:03:10,599
Earlier this year, when we adopted

1848
01:03:10,600 --> 01:03:13,019
the resolution to fund MATCAP

1849
01:03:13,020 --> 01:03:15,299
through the general fund, we

1850
01:03:15,300 --> 01:03:16,899
assumed that the program would be

1851
01:03:16,900 --> 01:03:19,159
administered by allocating

1852
01:03:19,160 --> 01:03:20,919
costs across all of the utilities

1853
01:03:20,920 --> 01:03:22,359
that are impacted.

1854
01:03:22,360 --> 01:03:23,879
So we transferred money to storm

1855
01:03:23,880 --> 01:03:25,119
water, sewer, and water.

1856
01:03:25,120 --> 01:03:26,979
After that

1857
01:03:26,980 --> 01:03:28,759
was adopted and further discussion

1858
01:03:28,760 --> 01:03:29,869
with staff.

1859
01:03:29,870 --> 01:03:31,849
There was consensus that it would be

1860
01:03:31,850 --> 01:03:33,849
more administratively

1861
01:03:33,850 --> 01:03:35,869
efficient to consolidate

1862
01:03:35,870 --> 01:03:37,789
all of this instead of allocating

1863
01:03:37,790 --> 01:03:39,609
across utilities centralized

1864
01:03:39,610 --> 01:03:41,089
administration of the program and

1865
01:03:41,090 --> 01:03:42,249
water utility.

1866
01:03:42,250 --> 01:03:44,829
So this is a technical transfer to

1867
01:03:44,830 --> 01:03:46,749
move the money that

1868
01:03:46,750 --> 01:03:48,549
was allocated to sewer and storm

1869
01:03:48,550 --> 01:03:49,949
into the water utility

1870
01:03:52,130 --> 01:03:54,509
And then, finally,

1871
01:03:54,510 --> 01:03:56,589
the last component is capital

1872
01:03:56,590 --> 01:03:58,409
budget transfers and

1873
01:03:58,410 --> 01:03:59,729
adjustments.

1874
01:03:59,730 --> 01:04:01,409
The resolution has a long list of

1875
01:04:01,410 --> 01:04:02,770
projects that are being amended.

1876
01:04:04,130 --> 01:04:05,990
In almost all of these projects,

1877
01:04:07,050 --> 01:04:08,789
the project budget is increasing by

1878
01:04:08,790 --> 01:04:11,149
using a non-geoborrowing

1879
01:04:11,150 --> 01:04:12,150
funding source.

1880
01:04:12,990 --> 01:04:15,229
So projects span engineering,

1881
01:04:15,230 --> 01:04:17,189
fleet, parks, sewer, and water.

1882
01:04:17,190 --> 01:04:19,289
And these are mostly small

1883
01:04:19,290 --> 01:04:21,069
increases to total project budgets

1884
01:04:21,070 --> 01:04:23,129
based on proceeds

1885
01:04:23,130 --> 01:04:25,629
from insurance payments, donations,

1886
01:04:25,630 --> 01:04:27,629
reserves, and other sources

1887
01:04:27,630 --> 01:04:29,629
that do not rely on borrowing

1888
01:04:29,630 --> 01:04:31,709
that we

1889
01:04:31,710 --> 01:04:33,029
got more information about these

1890
01:04:33,030 --> 01:04:34,569
final numbers and need to make a

1891
01:04:34,570 --> 01:04:36,489
budget adjustment to be able to

1892
01:04:36,490 --> 01:04:37,490
appropriate that money.

1893
01:04:38,710 --> 01:04:39,710
And finally,

1894
01:04:40,710 --> 01:04:42,609
there are some amendments

1895
01:04:42,610 --> 01:04:44,049
related to TIF funding.

1896
01:04:45,310 --> 01:04:47,149
So in CDA redevelopment

1897
01:04:47,150 --> 01:04:48,749
for the South Madison Redevelopment

1898
01:04:48,750 --> 01:04:50,369
Project, there are two actions being

1899
01:04:50,370 --> 01:04:52,229
taken. One is transferring $5

1900
01:04:52,230 --> 01:04:54,549
million of 251

1901
01:04:54,550 --> 01:04:56,369
increment that was budgeted

1902
01:04:56,370 --> 01:04:58,589
in CDD, affordable housing,

1903
01:04:58,590 --> 01:05:00,309
to CDA Redevelopments for the

1904
01:05:00,310 --> 01:05:01,310
project.

1905
01:05:01,750 --> 01:05:03,529
And the second is appropriating an

1906
01:05:03,530 --> 01:05:05,369
additional $5,000,000 in 251

1907
01:05:05,370 --> 01:05:07,309
increment that's based on

1908
01:05:07,310 --> 01:05:08,949
an adopted project plan amendment

1909
01:05:08,950 --> 01:05:10,889
that was approved earlier this year.

1910
01:05:10,890 --> 01:05:13,669
And then the final.

1911
01:05:13,670 --> 01:05:15,729
Item is really a correction to

1912
01:05:15,730 --> 01:05:17,669
an error in the budget, where we

1913
01:05:17,670 --> 01:05:21,049
had included 1,040,000

1914
01:05:21,050 --> 01:05:23,329
in TIF increment to the Madison

1915
01:05:23,330 --> 01:05:24,709
Lakeway project.

1916
01:05:25,910 --> 01:05:27,669
And this should have always been

1917
01:05:27,670 --> 01:05:29,109
presented as TIF supported

1918
01:05:29,110 --> 01:05:31,629
geo-borrowing from TIF 53.

1919
01:05:31,630 --> 01:05:33,329
So that was a mistake that we are

1920
01:05:33,330 --> 01:05:35,149
correcting now by changing funding

1921
01:05:35,150 --> 01:05:36,150
sources.

1922
01:05:37,090 --> 01:05:38,969
So that's the last of my slides.

1923
01:05:38,970 --> 01:05:41,070
I'll pause and see what...

1924
01:05:42,650 --> 01:05:44,009
How the body wants to proceed in

1925
01:05:44,010 --> 01:05:46,269
terms of metro or

1926
01:05:46,270 --> 01:05:47,270
questions now.

1927
01:05:49,920 --> 01:05:51,139
Any sense of the body?

1928
01:05:51,140 --> 01:05:52,559
Should we keep going through the

1929
01:05:52,560 --> 01:05:53,659
presentation or do you wanna have

1930
01:05:53,660 --> 01:05:55,819
questions, President Madison?

1931
01:05:55,820 --> 01:05:57,139
I'd like us to keep going.

1932
01:05:58,160 --> 01:05:59,160
Any objection?

1933
01:06:00,320 --> 01:06:01,760
Seeing no objection, we'll go ahead.

1934
01:06:04,250 --> 01:06:06,309
General Manager Acton.

1935
01:06:06,310 --> 01:06:08,469
Hi, good evening, Jamie Acton.

1936
01:06:08,470 --> 01:06:10,069
With me, I have our new finance

1937
01:06:10,070 --> 01:06:11,609
director, Zal.

1938
01:06:11,610 --> 01:06:13,889
We refer to him as Buta, lovingly,

1939
01:06:13,890 --> 01:06:16,369
so he'll be joining me in tonight's

1940
01:06:16,370 --> 01:06:18,109
presentation to help just fill in

1941
01:06:18,110 --> 01:06:20,189
some gaps if we run into some

1942
01:06:20,190 --> 01:06:21,989
questions, as we both are relatively

1943
01:06:21,990 --> 01:06:23,589
new to.

1944
01:06:23,590 --> 01:06:25,549
This is my first full year in

1945
01:06:25,550 --> 01:06:27,489
the budget process with the city

1946
01:06:27,490 --> 01:06:29,689
and Buta just a few months in,

1947
01:06:29,690 --> 01:06:31,709
but happy to have him and really

1948
01:06:31,710 --> 01:06:33,769
diving into where we're

1949
01:06:33,770 --> 01:06:35,059
at today. So.

1950
01:06:35,060 --> 01:06:36,960
Christine, do you have our slides?

1951
01:06:52,560 --> 01:06:53,659
Great, thank you.

1952
01:06:54,660 --> 01:06:55,579
Can everybody hear us?

1953
01:06:55,580 --> 01:06:57,879
Okay, we're kind of chested out a

1954
01:06:57,880 --> 01:07:00,039
new situation with audio today.

1955
01:07:01,460 --> 01:07:03,959
So, okay, so

1956
01:07:03,960 --> 01:07:05,520
big picture right now.

1957
01:07:08,260 --> 01:07:11,039
Metro is over budget and

1958
01:07:11,040 --> 01:07:12,959
essentially will have been for

1959
01:07:12,960 --> 01:07:14,879
the last two budget cycles.

1960
01:07:14,880 --> 01:07:16,759
So in 25, we

1961
01:07:16,760 --> 01:07:18,719
came to you late

1962
01:07:18,720 --> 01:07:20,739
with about a 5.7

1963
01:07:20,740 --> 01:07:21,740
million.

1964
01:07:22,810 --> 01:07:24,669
And then as

1965
01:07:24,670 --> 01:07:27,469
Christine has been talking today,

1966
01:07:27,470 --> 01:07:29,409
we are currently projecting

1967
01:07:29,410 --> 01:07:31,389
4.2.

1968
01:07:31,390 --> 01:07:33,289
So obviously,

1969
01:07:33,290 --> 01:07:35,309
the 26th gap is smaller,

1970
01:07:35,310 --> 01:07:37,029
but we still are in a situation

1971
01:07:37,030 --> 01:07:38,929
where our revenues are below budget

1972
01:07:38,930 --> 01:07:40,809
and our expenses are

1973
01:07:40,810 --> 01:07:42,069
above the budget.

1974
01:07:42,070 --> 01:07:43,969
So that is

1975
01:07:43,970 --> 01:07:46,009
essentially, you

1976
01:07:46,010 --> 01:07:47,949
know, looking at our revenue

1977
01:07:47,950 --> 01:07:49,829
projections and the estimates that

1978
01:07:49,830 --> 01:07:52,199
have been given for prior budgets.

1979
01:07:52,200 --> 01:07:54,259
The rates of providing service

1980
01:07:54,260 --> 01:07:56,219
that haven't been keeping pace with

1981
01:07:56,220 --> 01:07:58,359
our actual costs.

1982
01:07:58,360 --> 01:08:00,339
And then those actual

1983
01:08:00,340 --> 01:08:02,219
costs continue to rise

1984
01:08:02,220 --> 01:08:04,239
and they aren't

1985
01:08:04,240 --> 01:08:05,859
in line with our current operating

1986
01:08:05,860 --> 01:08:07,739
realities, whether that is

1987
01:08:07,740 --> 01:08:09,859
service level or contractual

1988
01:08:09,860 --> 01:08:11,359
agreements or whatnot.

1989
01:08:11,360 --> 01:08:13,299
So as Christine mentioned,

1990
01:08:13,300 --> 01:08:15,419
our immediate need right now is to

1991
01:08:15,420 --> 01:08:16,898
have the increased budgetary

1992
01:08:16,899 --> 01:08:17,759
authority.

1993
01:08:17,760 --> 01:08:19,959
To be able to

1994
01:08:19,960 --> 01:08:21,978
make sure that we continue

1995
01:08:21,979 --> 01:08:23,959
to purchase supplies for

1996
01:08:23,960 --> 01:08:25,999
the busses, to continue to do

1997
01:08:26,000 --> 01:08:27,999
maintenance on, and then

1998
01:08:28,000 --> 01:08:30,119
also an increase to purchase

1999
01:08:30,120 --> 01:08:32,159
of services, which is

2000
01:08:32,160 --> 01:08:34,199
primarily our paratransit contracted

2001
01:08:34,200 --> 01:08:36,318
services that we are federally

2002
01:08:36,319 --> 01:08:38,278
required to provide since we also

2003
01:08:38,279 --> 01:08:40,459
provide the fixed route service.

2004
01:08:40,460 --> 01:08:41,460
Next slide, please.

2005
01:08:45,130 --> 01:08:47,189
So where does Metro's money come

2006
01:08:47,190 --> 01:08:49,089
from? In 2026, we

2007
01:08:49,090 --> 01:08:51,249
had these four main revenue

2008
01:08:51,250 --> 01:08:52,108
streams.

2009
01:08:52,109 --> 01:08:53,749
You'll see the general fund or the

2010
01:08:53,750 --> 01:08:56,289
city subsidy is about 30%

2011
01:08:56,290 --> 01:08:58,229
in the orange top right.

2012
01:08:59,609 --> 01:09:01,009
Below that, we've got the

2013
01:09:01,010 --> 01:09:02,869
intergovernmental funds which are

2014
01:09:02,870 --> 01:09:04,949
essentially federal and state

2015
01:09:04,950 --> 01:09:07,028
grants or funding that provide

2016
01:09:07,029 --> 01:09:09,209
us with some operating expenses

2017
01:09:09,210 --> 01:09:11,089
and assistance, that's

2018
01:09:11,090 --> 01:09:12,879
about 31%.

2019
01:09:12,880 --> 01:09:14,459
We have other, which is kind of a

2020
01:09:14,460 --> 01:09:16,559
mixed bag of wheel

2021
01:09:16,560 --> 01:09:19,159
tax, registration fees,

2022
01:09:19,160 --> 01:09:21,358
advertising sales, insurance

2023
01:09:21,359 --> 01:09:23,959
recoveries, and just some

2024
01:09:23,960 --> 01:09:25,919
miscellaneous revenue, and that's

2025
01:09:25,920 --> 01:09:27,478
about 9%.

2026
01:09:27,479 --> 01:09:29,439
And then we have our purchase of

2027
01:09:29,440 --> 01:09:31,379
services, and that is our

2028
01:09:31,380 --> 01:09:33,439
contracts, that's our fares, that's

2029
01:09:33,440 --> 01:09:35,379
are passes, and accounts for

2030
01:09:35,380 --> 01:09:36,959
another about 30%.

2031
01:09:36,960 --> 01:09:38,818
So that's where we're

2032
01:09:38,819 --> 01:09:40,519
sitting there.

2033
01:09:40,520 --> 01:09:41,520
Next slide, please.

2034
01:09:43,770 --> 01:09:45,089
So just a little bit more about

2035
01:09:45,090 --> 01:09:46,469
these revenues.

2036
01:09:46,470 --> 01:09:48,589
So our service contracts, as

2037
01:09:48,590 --> 01:09:51,169
we entered into them,

2038
01:09:51,170 --> 01:09:53,549
I believe they auto-renewed

2039
01:09:53,550 --> 01:09:56,449
last August for another five-year

2040
01:09:56,450 --> 01:09:58,849
period for some of them.

2041
01:09:58,850 --> 01:10:00,609
These are everything from the

2042
01:10:00,610 --> 01:10:02,029
community contracts that we have

2043
01:10:02,030 --> 01:10:04,249
with other municipalities to

2044
01:10:04,250 --> 01:10:05,250
provide service.

2045
01:10:06,250 --> 01:10:08,529
It's MMSD, it's the universities

2046
01:10:08,530 --> 01:10:09,809
and the colleges.

2047
01:10:09,810 --> 01:10:11,669
It's a bit of a mixed

2048
01:10:11,670 --> 01:10:12,670
group of

2049
01:10:13,660 --> 01:10:15,619
agencies, organizations,

2050
01:10:15,620 --> 01:10:17,079
communities that are purchasing

2051
01:10:17,080 --> 01:10:19,639
service from Metro that we provide.

2052
01:10:19,640 --> 01:10:21,499
What we have found based

2053
01:10:21,500 --> 01:10:23,239
on the information that we're

2054
01:10:23,240 --> 01:10:25,579
required to report to the

2055
01:10:25,580 --> 01:10:27,819
Federal Transit Administration is

2056
01:10:27,820 --> 01:10:29,939
that those contracts

2057
01:10:29,940 --> 01:10:32,059
were not initially set

2058
01:10:32,060 --> 01:10:33,919
up to cover our full cost

2059
01:10:33,920 --> 01:10:35,399
of providing said service.

2060
01:10:35,400 --> 01:10:37,399
So we're running into

2061
01:10:37,400 --> 01:10:39,499
some challenges around that

2062
01:10:39,500 --> 01:10:41,619
and those will need to be adjusted

2063
01:10:41,620 --> 01:10:43,479
and addressed.

2064
01:10:43,480 --> 01:10:46,019
We also have an

2065
01:10:46,020 --> 01:10:47,879
outdated agency fare

2066
01:10:47,880 --> 01:10:50,479
rate for our paratransit

2067
01:10:50,480 --> 01:10:52,539
clients that

2068
01:10:52,540 --> 01:10:54,679
have rides and trips booked through

2069
01:10:54,680 --> 01:10:56,179
different agencies.

2070
01:10:56,180 --> 01:10:58,899
That hasn't been touched since 2023.

2071
01:10:58,900 --> 01:11:02,339
Paratransite is definitely

2072
01:11:02,340 --> 01:11:04,539
one of the highest

2073
01:11:04,540 --> 01:11:06,439
modes of transportation, but it is

2074
01:11:06,440 --> 01:11:08,959
also one of most critical modes of

2075
01:11:08,960 --> 01:11:09,999
transport in our community.

2076
01:11:11,270 --> 01:11:13,089
The next update is

2077
01:11:13,090 --> 01:11:15,649
fair capping and past sales.

2078
01:11:15,650 --> 01:11:17,889
So we have some housekeeping

2079
01:11:17,890 --> 01:11:20,129
to do around fair cappin,

2080
01:11:20,130 --> 01:11:22,029
past sales, and really looking at

2081
01:11:22,030 --> 01:11:23,609
the way that we are applying this

2082
01:11:23,610 --> 01:11:25,049
and how we're doing it consistently

2083
01:11:25,050 --> 01:11:26,609
and what our process and our

2084
01:11:26,610 --> 01:11:29,209
policies are around fair-capping,

2085
01:11:29,210 --> 01:11:30,549
past-sales.

2086
01:11:30,550 --> 01:11:32,029
Is there a way that can simplify

2087
01:11:32,030 --> 01:11:33,809
this? Is there way that that we can

2088
01:11:33,810 --> 01:11:35,189
be more consistent to be able to

2089
01:11:35,190 --> 01:11:37,089
give ourselves some more,

2090
01:11:37,090 --> 01:11:38,470
I guess.

2091
01:11:39,740 --> 01:11:42,019
Brown truths revenue

2092
01:11:42,020 --> 01:11:43,859
projections in the

2093
01:11:43,860 --> 01:11:45,059
future.

2094
01:11:45,060 --> 01:11:47,479
And then we also, as you saw,

2095
01:11:47,480 --> 01:11:49,319
the federal and state

2096
01:11:49,320 --> 01:11:52,199
funds that are

2097
01:11:52,200 --> 01:11:54,239
provided to us annually,

2098
01:11:54,240 --> 01:11:56,119
these intergovernmental funds have

2099
01:11:56,120 --> 01:11:57,939
not kept up with inflation

2100
01:11:57,940 --> 01:12:00,179
and they have not seen

2101
01:12:00,180 --> 01:12:02,079
increases over

2102
01:12:02,080 --> 01:12:03,899
the last 10 years, at least, since

2103
01:12:03,900 --> 01:12:06,789
what I've been looking at, That

2104
01:12:06,790 --> 01:12:08,549
that would really keep up with our

2105
01:12:08,550 --> 01:12:10,449
actual costs to provide service

2106
01:12:10,450 --> 01:12:12,269
and to be able to cover those

2107
01:12:12,270 --> 01:12:13,229
costs.

2108
01:12:13,230 --> 01:12:15,129
So those are some

2109
01:12:15,130 --> 01:12:17,249
of the challenges around our

2110
01:12:17,250 --> 01:12:19,129
revenues that we need to kind of dig

2111
01:12:19,130 --> 01:12:20,429
into and dive into.

2112
01:12:20,430 --> 01:12:22,289
So the next slide,

2113
01:12:22,290 --> 01:12:23,290
please Christine,

2114
01:12:24,530 --> 01:12:26,489
talks a little bit about our federal

2115
01:12:26,490 --> 01:12:28,649
funds and how we can use

2116
01:12:28,650 --> 01:12:30,029
the federal funds.

2117
01:12:30,030 --> 01:12:32,209
So every year we get

2118
01:12:32,210 --> 01:12:34,369
specific categories.

2119
01:12:34,370 --> 01:12:36,089
We get four.

2120
01:12:36,090 --> 01:12:37,589
Four categories, three are shown

2121
01:12:37,590 --> 01:12:39,409
here, and then the

2122
01:12:39,410 --> 01:12:40,689
discretionary.

2123
01:12:40,690 --> 01:12:42,309
The one that's not shown here is a

2124
01:12:42,310 --> 01:12:44,069
5310 program, and that's a

2125
01:12:44,070 --> 01:12:45,449
pass-through program.

2126
01:12:45,450 --> 01:12:47,089
And it's actually a program that we

2127
01:12:47,090 --> 01:12:48,489
administer for the rest of the

2128
01:12:48,490 --> 01:12:49,989
county to be able to utilize.

2129
01:12:49,990 --> 01:12:52,109
So we get it, but then we

2130
01:12:52,110 --> 01:12:53,769
promptly put it back out into the

2131
01:12:53,770 --> 01:12:55,709
community for transportation

2132
01:12:55,710 --> 01:12:57,549
around seniors and people

2133
01:12:57,550 --> 01:12:59,849
experiencing disabilities.

2134
01:12:59,850 --> 01:13:01,809
So we have

2135
01:13:01,810 --> 01:13:04,759
these categories.

2136
01:13:04,760 --> 01:13:06,619
They have a lot of rules.

2137
01:13:06,620 --> 01:13:09,179
They have eligibility requirements.

2138
01:13:09,180 --> 01:13:11,059
They have timelines

2139
01:13:11,060 --> 01:13:13,199
and reporting and just

2140
01:13:13,200 --> 01:13:15,199
drawdown processes and

2141
01:13:15,200 --> 01:13:16,579
they all require a local

2142
01:13:16,580 --> 01:13:18,619
contribution and we

2143
01:13:18,620 --> 01:13:20,319
get that local contribution from the

2144
01:13:20,320 --> 01:13:22,399
general fund for certain parts

2145
01:13:22,400 --> 01:13:24,219
and then we get our local

2146
01:13:24,220 --> 01:13:26,239
contribution for the

2147
01:13:26,240 --> 01:13:28,099
capital budget as well.

2148
01:13:28,100 --> 01:13:29,979
The thing that's important about

2149
01:13:29,980 --> 01:13:32,039
these monies is that they can be

2150
01:13:32,040 --> 01:13:34,139
combined, but they're

2151
01:13:34,140 --> 01:13:36,419
their dollar amounts and usage

2152
01:13:36,420 --> 01:13:38,659
cannot be transferred

2153
01:13:38,660 --> 01:13:40,339
from plot to plot essentially.

2154
01:13:40,340 --> 01:13:42,399
So we have a

2155
01:13:42,400 --> 01:13:44,219
lot of moving pieces and

2156
01:13:44,220 --> 01:13:46,039
parts around the federal dollars,

2157
01:13:46,040 --> 01:13:47,819
but some of what Christine had

2158
01:13:47,820 --> 01:13:49,919
mentioned about us not necessarily

2159
01:13:49,920 --> 01:13:51,879
needing to come in for a

2160
01:13:51,880 --> 01:13:53,799
subsidy at the end of the year is

2161
01:13:53,800 --> 01:13:55,959
going to be tied to our ability to

2162
01:13:55,960 --> 01:13:57,579
leverage these federal dollars and

2163
01:13:57,580 --> 01:13:59,399
what we actually have

2164
01:13:59,400 --> 01:14:00,679
available to us this year.

2165
01:14:00,680 --> 01:14:02,929
So. We are leaving no

2166
01:14:02,930 --> 01:14:04,969
stone unturned and starting to

2167
01:14:04,970 --> 01:14:07,229
dig in and really see

2168
01:14:07,230 --> 01:14:08,909
where the flexibility in the federal

2169
01:14:08,910 --> 01:14:10,749
funds lie for us to be able

2170
01:14:10,750 --> 01:14:12,729
to try to help fill this

2171
01:14:12,730 --> 01:14:13,629
gap.

2172
01:14:13,630 --> 01:14:14,630
Next slide, please.

2173
01:14:17,520 --> 01:14:19,539
So what are major cost factors

2174
01:14:19,540 --> 01:14:21,060
impacting our 26th budget?

2175
01:14:22,440 --> 01:14:24,339
Obviously Metro provides

2176
01:14:24,340 --> 01:14:26,839
a lot of its service,

2177
01:14:26,840 --> 01:14:29,019
existing service

2178
01:14:29,020 --> 01:14:31,019
throughout the entire department

2179
01:14:31,020 --> 01:14:33,439
that it relies upon with

2180
01:14:33,440 --> 01:14:34,459
overtime dollars.

2181
01:14:34,460 --> 01:14:36,479
So that is definitely

2182
01:14:36,480 --> 01:14:38,769
driving our costs.

2183
01:14:38,770 --> 01:14:40,809
Bus parts, bus parts

2184
01:14:40,810 --> 01:14:43,389
came in in 2026,

2185
01:14:43,390 --> 01:14:45,929
higher than anticipated.

2186
01:14:45,930 --> 01:14:48,029
The warranties for the new busses,

2187
01:14:48,030 --> 01:14:49,949
the six-speed busses, are

2188
01:14:49,950 --> 01:14:52,129
now no longer covered

2189
01:14:52,130 --> 01:14:54,169
by the vendor, and we are

2190
01:14:54,170 --> 01:14:55,849
paying for those replacement parts

2191
01:14:55,850 --> 01:14:57,149
directly.

2192
01:14:57,150 --> 01:14:59,049
Those parts that

2193
01:14:59,050 --> 01:15:01,269
have seen increases in

2194
01:15:01,270 --> 01:15:03,149
their costs, and they just

2195
01:15:03,150 --> 01:15:05,309
weren't reflected in the 2026

2196
01:15:05,310 --> 01:15:06,310
budget.

2197
01:15:06,930 --> 01:15:08,849
And then paratransit,

2198
01:15:08,850 --> 01:15:10,789
as I said before, this is

2199
01:15:10,790 --> 01:15:12,769
federally required by anybody that

2200
01:15:12,770 --> 01:15:15,349
provides fixed route services,

2201
01:15:15,350 --> 01:15:17,349
and it's essentially for

2202
01:15:17,350 --> 01:15:19,289
people that are unable to

2203
01:15:19,290 --> 01:15:21,269
use the fixed routes,

2204
01:15:21,270 --> 01:15:23,089
something prevents them from from

2205
01:15:23,090 --> 01:15:25,789
using fixed route or BRT.

2206
01:15:25,790 --> 01:15:28,009
When our service chain area

2207
01:15:28,010 --> 01:15:29,849
changed in 23,

2208
01:15:29,850 --> 01:15:31,689
24, and then 25,

2209
01:15:31,690 --> 01:15:34,269
our paratransit demand increased

2210
01:15:34,270 --> 01:15:36,069
as the service area expanded

2211
01:15:36,070 --> 01:15:37,169
naturally.

2212
01:15:37,170 --> 01:15:39,229
You were required to provide

2213
01:15:39,230 --> 01:15:40,969
paratransit service within three

2214
01:15:40,970 --> 01:15:42,609
quarters of a mile of the fixed

2215
01:15:42,610 --> 01:15:43,669
routes.

2216
01:15:43,670 --> 01:15:45,529
And so we definitely saw

2217
01:15:45,530 --> 01:15:47,589
more demand around that.

2218
01:15:47,590 --> 01:15:49,449
And then we also have

2219
01:15:49,450 --> 01:15:51,469
three providers with three different

2220
01:15:51,470 --> 01:15:52,969
contracts and different terms and

2221
01:15:52,970 --> 01:15:54,789
escalators and costs that

2222
01:15:54,790 --> 01:15:56,889
are tied to providing paratranit

2223
01:15:56,890 --> 01:15:59,129
service that we saw things

2224
01:15:59,130 --> 01:16:01,669
later or earlier this year like

2225
01:16:01,670 --> 01:16:02,519
fuel turks.

2226
01:16:02,520 --> 01:16:04,339
Fuel surge charges

2227
01:16:04,340 --> 01:16:06,779
and things that we hadn't had

2228
01:16:06,780 --> 01:16:09,019
come into play

2229
01:16:09,020 --> 01:16:11,059
in previous years.

2230
01:16:11,060 --> 01:16:13,199
We also are on the final year

2231
01:16:13,200 --> 01:16:15,339
of our contracts with these

2232
01:16:15,340 --> 01:16:17,179
three providers, and so we will

2233
01:16:17,180 --> 01:16:20,079
going out to RFP in 2020,

2234
01:16:20,080 --> 01:16:21,839
well, this year to begin a new

2235
01:16:21,840 --> 01:16:24,119
contract in 2027.

2236
01:16:24,120 --> 01:16:26,219
However, I do not see costs

2237
01:16:26,220 --> 01:16:28,259
nationwide reducing for

2238
01:16:28,260 --> 01:16:30,339
paratransit services, if anything

2239
01:16:30,340 --> 01:16:32,119
may continue to increase.

2240
01:16:32,120 --> 01:16:33,759
So we are starting to look at what

2241
01:16:33,760 --> 01:16:35,999
that looks like for the 2027

2242
01:16:36,000 --> 01:16:37,079
budget.

2243
01:16:37,080 --> 01:16:38,399
So those are some of the major cost

2244
01:16:38,400 --> 01:16:40,099
factors for us right now.

2245
01:16:40,100 --> 01:16:41,399
In the next slide, please.

2246
01:16:44,650 --> 01:16:46,809
So what are we doing to look ahead?

2247
01:16:46,810 --> 01:16:48,989
Like I said, I'm incredibly grateful

2248
01:16:48,990 --> 01:16:51,609
that Buddha is now here and

2249
01:16:51,610 --> 01:16:53,609
looking to dive into all

2250
01:16:53,610 --> 01:16:55,810
of our finances here at Metro.

2251
01:16:57,250 --> 01:16:59,349
Short-term, third-quarter type

2252
01:16:59,350 --> 01:17:01,569
activities, we are going to

2253
01:17:01,570 --> 01:17:03,049
obviously continue to actively

2254
01:17:03,050 --> 01:17:04,629
monitor all of your spending.

2255
01:17:05,970 --> 01:17:07,829
And I think that it's important that

2256
01:17:07,830 --> 01:17:10,029
not just with the spending,

2257
01:17:10,030 --> 01:17:11,599
we're looking at.

2258
01:17:11,600 --> 01:17:13,479
How we're spending and where

2259
01:17:13,480 --> 01:17:15,419
we can use our

2260
01:17:15,420 --> 01:17:17,299
eligible federal dollars to

2261
01:17:17,300 --> 01:17:19,459
either charge against

2262
01:17:19,460 --> 01:17:21,499
or back bill essentially

2263
01:17:21,500 --> 01:17:23,359
where we should have used federal

2264
01:17:23,360 --> 01:17:24,819
dollars.

2265
01:17:24,820 --> 01:17:26,719
We also have several grants in

2266
01:17:26,720 --> 01:17:28,539
place that allow staff to be

2267
01:17:28,540 --> 01:17:30,419
charging time to and

2268
01:17:30,420 --> 01:17:31,779
we need to go back and look at

2269
01:17:31,780 --> 01:17:33,599
payroll and make sure the

2270
01:17:33,600 --> 01:17:35,199
appropriate staff is charging to the

2271
01:17:35,200 --> 01:17:40,429
appropriate grants and if we

2272
01:17:40,430 --> 01:17:41,749
And then we need to start having

2273
01:17:41,750 --> 01:17:43,409
these conversations on a larger

2274
01:17:43,410 --> 01:17:45,369
scale about our service contracts

2275
01:17:45,370 --> 01:17:46,989
and what that rate increase would

2276
01:17:46,990 --> 01:17:49,609
look like for our partners

2277
01:17:49,610 --> 01:17:52,849
that purchase service from us.

2278
01:17:52,850 --> 01:17:54,849
We also need to star longer

2279
01:17:54,850 --> 01:17:57,249
term, midterm, quarter four.

2280
01:17:57,250 --> 01:17:59,349
We need to the process for updating

2281
01:17:59,350 --> 01:18:01,329
the paratransit agency fare.

2282
01:18:01,330 --> 01:18:03,249
We need start the process for

2283
01:18:03,250 --> 01:18:05,229
updating The Unlimited Ride

2284
01:18:05,230 --> 01:18:06,379
Pass.

2285
01:18:06,380 --> 01:18:08,599
And take those to the Transportation

2286
01:18:08,600 --> 01:18:10,558
Commission and start the

2287
01:18:10,559 --> 01:18:12,499
public process around what that

2288
01:18:12,500 --> 01:18:13,500
looks like.

2289
01:18:14,260 --> 01:18:16,479
Last year, when I

2290
01:18:16,480 --> 01:18:18,419
learned about the deficit,

2291
01:18:18,420 --> 01:18:20,639
we immediately did

2292
01:18:20,640 --> 01:18:22,839
a purchase card cutoff,

2293
01:18:22,840 --> 01:18:24,719
which basically froze all of

2294
01:18:24,720 --> 01:18:26,259
our discretionary spending, our

2295
01:18:26,260 --> 01:18:28,259
nice-to-haves, or not

2296
01:18:28,260 --> 01:18:29,919
necessarily our needs.

2297
01:18:29,920 --> 01:18:32,239
What this does mean is that safety,

2298
01:18:32,240 --> 01:18:33,240
security,

2299
01:18:34,350 --> 01:18:36,409
maintenance, day-to-day maintenance,

2300
01:18:36,410 --> 01:18:38,029
anything like that will still

2301
01:18:38,030 --> 01:18:39,889
happen, but we will

2302
01:18:39,890 --> 01:18:42,069
pull off on other purchases that

2303
01:18:42,070 --> 01:18:44,109
we can make at

2304
01:18:44,110 --> 01:18:45,769
a later date or with a different

2305
01:18:45,770 --> 01:18:47,189
funding source once it becomes

2306
01:18:47,190 --> 01:18:49,009
available, but really trying to

2307
01:18:49,010 --> 01:18:51,169
protect the operating budget at

2308
01:18:51,170 --> 01:18:52,369
this point.

2309
01:18:52,370 --> 01:18:53,709
And then they'll start to look at

2310
01:18:53,710 --> 01:18:56,169
what those revised service contracts

2311
01:18:56,170 --> 01:18:58,789
would look for 2027 and

2312
01:18:58,790 --> 01:19:00,449
begin.

2313
01:19:00,450 --> 01:19:02,469
You know, negotiating and seeing

2314
01:19:02,470 --> 01:19:04,849
what we can do around those

2315
01:19:04,850 --> 01:19:06,669
service contracts and

2316
01:19:06,670 --> 01:19:08,509
get those rights sized as best

2317
01:19:08,510 --> 01:19:10,789
possible to be able to

2318
01:19:10,790 --> 01:19:11,809
cover the costs.

2319
01:19:12,970 --> 01:19:14,789
So next slide, I think is

2320
01:19:14,790 --> 01:19:15,790
the last.

2321
01:19:16,930 --> 01:19:18,829
So yeah, that is just kind of

2322
01:19:18,830 --> 01:19:20,129
a brief overview of where we're

2323
01:19:20,130 --> 01:19:21,849
sitting right now.

2324
01:19:21,850 --> 01:19:23,789
Happy to answer

2325
01:19:23,790 --> 01:19:26,049
questions and wanna see

2326
01:19:26,050 --> 01:19:28,689
where Christine's sitting too on

2327
01:19:28,690 --> 01:19:29,870
that, But

2328
01:19:32,540 --> 01:19:33,760
We'll defer to proceed.

2329
01:19:36,170 --> 01:19:37,170
Thank you.

2330
01:19:38,270 --> 01:19:40,769
I think questions now for,

2331
01:19:40,770 --> 01:19:41,910
on any of the presentation.

2332
01:19:44,290 --> 01:19:46,210
If there are any, that was a lot.

2333
01:19:47,490 --> 01:19:48,490
Other bit of her.

2334
01:19:49,420 --> 01:19:50,859
I'll start with Jamie since you went

2335
01:19:50,860 --> 01:19:52,299
last.

2336
01:19:52,300 --> 01:19:54,439
So one of the questions I had since

2337
01:19:54,440 --> 01:19:57,099
paratransit services costs

2338
01:19:57,100 --> 01:19:58,819
are going up and in part that's

2339
01:19:58,820 --> 01:20:00,259
because our service area has

2340
01:20:00,260 --> 01:20:02,139
increased our

2341
01:20:02,140 --> 01:20:04,379
partner municipalities for

2342
01:20:04,380 --> 01:20:05,919
lack of a better phrase paying their

2343
01:20:05,920 --> 01:20:07,699
fair share for paratranit in their

2344
01:20:07,700 --> 01:20:08,939
communities.

2345
01:20:08,940 --> 01:20:10,759
So my understanding of the way

2346
01:20:10,760 --> 01:20:12,599
that the contract rates

2347
01:20:12,600 --> 01:20:14,439
are paratransit is being

2348
01:20:14,440 --> 01:20:16,319
captured, but I do think

2349
01:20:16,320 --> 01:20:18,119
that this is probably part of the

2350
01:20:18,120 --> 01:20:19,719
rate adjustment that needs to take

2351
01:20:19,720 --> 01:20:21,679
place because we know that the cost

2352
01:20:21,680 --> 01:20:23,099
of providing paratranit has

2353
01:20:23,100 --> 01:20:24,979
increased as has the cost

2354
01:20:24,980 --> 01:20:26,558
of the fixed route in the BRT.

2355
01:20:26,559 --> 01:20:28,399
So we need to kind of lump those

2356
01:20:28,400 --> 01:20:30,259
together and right size that rate

2357
01:20:30,260 --> 01:20:31,360
and go from there.

2358
01:20:32,450 --> 01:20:34,609
And we won't make those adjustments

2359
01:20:34,610 --> 01:20:35,808
this year.

2360
01:20:35,809 --> 01:20:37,449
We'll just make them for 27.

2361
01:20:37,450 --> 01:20:38,629
Is that?

2362
01:20:38,630 --> 01:20:40,909
Yeah, so any

2363
01:20:40,910 --> 01:20:42,769
of the adjustments that Metro makes

2364
01:20:42,770 --> 01:20:44,769
right now will have to follow a

2365
01:20:44,770 --> 01:20:47,149
pretty rigorous public process,

2366
01:20:47,150 --> 01:20:49,429
whether it's increasing rates

2367
01:20:49,430 --> 01:20:51,369
or is looking

2368
01:20:51,370 --> 01:20:53,689
at service or whatnot.

2369
01:20:53,690 --> 01:20:54,989
But yeah, it all will have a

2370
01:20:54,990 --> 01:20:56,949
process. And I would say we

2371
01:20:56,950 --> 01:20:59,229
are starting it now.

2372
01:20:59,230 --> 01:21:01,049
And hopefully

2373
01:21:01,050 --> 01:21:02,589
there will be savings that are

2374
01:21:02,590 --> 01:21:04,469
realized sooner than later, but

2375
01:21:04,470 --> 01:21:06,389
more so projecting in 27

2376
01:21:06,390 --> 01:21:07,390
and beyond.

2377
01:21:10,059 --> 01:21:12,119
Christine, if you want to

2378
01:21:12,120 --> 01:21:14,259
continue with Jamie first

2379
01:21:14,260 --> 01:21:15,880
and then, or you want to do this.

2380
01:21:17,790 --> 01:21:20,289
Let's stick on Metro and

2381
01:21:20,290 --> 01:21:21,269
I'll come back to you, Alder.

2382
01:21:21,270 --> 01:21:22,709
Thank you.

2383
01:21:22,710 --> 01:21:25,049
Alder Matthews, questions on Metro?

2384
01:21:25,050 --> 01:21:26,350
Yeah, thank you, Mayor.

2385
01:21:27,430 --> 01:21:29,669
Just a follow-up on

2386
01:21:29,670 --> 01:21:32,189
evaluating the paratransit rates,

2387
01:21:32,190 --> 01:21:34,329
is that, do you mean the

2388
01:21:34,330 --> 01:21:36,549
individual rates that folks using

2389
01:21:36,550 --> 01:21:38,849
paratranit would pay,

2390
01:21:38,850 --> 01:21:40,729
or do we charge the

2391
01:21:40,730 --> 01:21:42,649
neighboring, like do

2392
01:21:42,650 --> 01:21:44,629
we manage that for neighboring

2393
01:21:44,630 --> 01:21:46,589
municipalities as well,

2394
01:21:46,590 --> 01:21:48,149
and are you meaning like a rate that

2395
01:21:48,150 --> 01:21:50,149
we would charge to, you

2396
01:21:50,150 --> 01:21:51,489
know, Sun Prairie or something like

2397
01:21:51,490 --> 01:21:52,490
that.

2398
01:21:52,980 --> 01:21:54,019
Yeah, thanks for that.

2399
01:21:54,020 --> 01:21:55,619
So there's kind of three different

2400
01:21:55,620 --> 01:21:57,399
things around paratransit right now.

2401
01:21:57,400 --> 01:21:59,379
So we have the individual rider

2402
01:21:59,380 --> 01:22:01,199
rate and fare.

2403
01:22:01,200 --> 01:22:02,839
That is not looking to be adjusted

2404
01:22:02,840 --> 01:22:03,799
at this time.

2405
01:22:03,800 --> 01:22:05,519
What we're looking to adjust is the

2406
01:22:05,520 --> 01:22:07,339
rate that the brokers come in and

2407
01:22:07,340 --> 01:22:08,539
pay to us.

2408
01:22:08,540 --> 01:22:10,219
That is what hasn't been adjusted

2409
01:22:10,220 --> 01:22:11,558
since 2023.

2410
01:22:11,559 --> 01:22:13,639
So I think right now the agencies

2411
01:22:13,640 --> 01:22:15,839
per trip are paying around $34,

2412
01:22:15,840 --> 01:22:17,899
$35, and that needs to be

2413
01:22:17,900 --> 01:22:18,839
adjust.

2414
01:22:18,840 --> 01:22:20,799
The rates of the contracts

2415
01:22:20,800 --> 01:22:22,759
of the partners that they are.

2416
01:22:22,760 --> 01:22:24,659
That are paying,

2417
01:22:24,660 --> 01:22:26,579
takes into account

2418
01:22:26,580 --> 01:22:28,479
of the fully loaded costs

2419
01:22:28,480 --> 01:22:30,159
of providing paratransit.

2420
01:22:30,160 --> 01:22:32,379
And we then have a

2421
01:22:32,380 --> 01:22:34,299
formula that we work through that we

2422
01:22:34,300 --> 01:22:36,279
will then associate with the fixed

2423
01:22:36,280 --> 01:22:38,058
routing BRT and paratranfit that

2424
01:22:38,059 --> 01:22:40,679
those folks will

2425
01:22:40,680 --> 01:22:43,219
be paying.

2426
01:22:43,220 --> 01:22:45,179
But that will be based off

2427
01:22:45,180 --> 01:22:46,019
of.

2428
01:22:46,020 --> 01:22:47,639
The information that we provide to

2429
01:22:47,640 --> 01:22:49,019
the Federal Transit Administration

2430
01:22:49,020 --> 01:22:51,299
and how we give that full response.

2431
01:22:51,300 --> 01:22:53,279
So that is not

2432
01:22:53,280 --> 01:22:55,399
any part of, like,

2433
01:22:55,400 --> 01:22:57,339
a process per se that's

2434
01:22:57,340 --> 01:22:58,340
guided,

2435
01:22:59,220 --> 01:23:01,259
like, the fare increases

2436
01:23:01,260 --> 01:23:02,779
to riders would be.

2437
01:23:02,780 --> 01:23:04,879
And then even this agency fare,

2438
01:23:04,880 --> 01:23:06,719
that has a very prescribed

2439
01:23:06,720 --> 01:23:08,659
process, but the contract rates

2440
01:23:08,660 --> 01:23:09,660
do not.

2441
01:23:10,800 --> 01:23:12,239
Great, thank you so much.

2442
01:23:13,760 --> 01:23:14,719
Thank you, all the Matthews.

2443
01:23:14,720 --> 01:23:15,779
Are there other questions from

2444
01:23:15,780 --> 01:23:16,780
Metro?

2445
01:23:19,270 --> 01:23:20,270
Well, they're over here.

2446
01:23:22,680 --> 01:23:24,539
Thanks very much,

2447
01:23:24,540 --> 01:23:26,379
Mayor. Yes, sticking with

2448
01:23:26,380 --> 01:23:28,259
Metro Transit budget questions

2449
01:23:28,260 --> 01:23:29,579
here.

2450
01:23:29,580 --> 01:23:31,579
First, thanks very much for being

2451
01:23:31,580 --> 01:23:32,580
here.

2452
01:23:33,200 --> 01:23:35,058
Jamie, I was hoping

2453
01:23:35,059 --> 01:23:37,119
that you would be here when

2454
01:23:37,120 --> 01:23:38,959
we heard back a

2455
01:23:38,960 --> 01:23:40,819
month ago in this committee meeting

2456
01:23:40,820 --> 01:23:42,499
about in our operating budget

2457
01:23:42,500 --> 01:23:44,759
outlook for next year that

2458
01:23:44,760 --> 01:23:46,599
Metro, according to

2459
01:23:46,600 --> 01:23:48,459
our finance department staff, was

2460
01:23:48,460 --> 01:23:49,899
anticipating a...

2461
01:23:49,900 --> 01:23:51,259
Nine point five million dollar

2462
01:23:51,260 --> 01:23:54,099
additional metro subsidy needed and

2463
01:23:54,100 --> 01:23:55,739
there were a lot of questions at

2464
01:23:55,740 --> 01:23:57,619
that time in my mind and I won't

2465
01:23:57,620 --> 01:23:59,039
I know we don't have the time for me

2466
01:23:59,040 --> 01:24:01,139
to ask all of my questions now

2467
01:24:01,140 --> 01:24:02,799
but your presentation was extremely

2468
01:24:02,800 --> 01:24:04,639
helpful as was

2469
01:24:04,640 --> 01:24:06,539
Christian Coe's presentation

2470
01:24:06,540 --> 01:24:08,419
as well as relates to metro

2471
01:24:08,420 --> 01:24:10,319
I want to state at the outset

2472
01:24:10,320 --> 01:24:12,039
that I realize that you inherited a

2473
01:24:12,040 --> 01:24:13,040
of these issues.

2474
01:24:14,690 --> 01:24:16,869
Same with certainly

2475
01:24:16,870 --> 01:24:18,289
our transportation director,

2476
01:24:18,290 --> 01:24:19,808
Christophe, who I know is with us

2477
01:24:19,809 --> 01:24:21,689
for this conversation, and

2478
01:24:21,690 --> 01:24:24,449
certainly Buddha as a recent member

2479
01:24:24,450 --> 01:24:26,308
of the Metro

2480
01:24:26,309 --> 01:24:27,309
family.

2481
01:24:28,350 --> 01:24:30,509
So I acknowledge all that, and I'm

2482
01:24:30,510 --> 01:24:31,889
sorry that we're in this situation,

2483
01:24:31,890 --> 01:24:32,989
obviously.

2484
01:24:32,990 --> 01:24:35,209
My first question, just speaking of

2485
01:24:35,210 --> 01:24:37,489
personnel, is in

2486
01:24:37,490 --> 01:24:39,308
the fact that you inherited a lot of

2487
01:24:39,309 --> 01:24:40,769
these issues.

2488
01:24:40,770 --> 01:24:42,649
Is do we still have the

2489
01:24:42,650 --> 01:24:44,889
assistance of some former

2490
01:24:44,890 --> 01:24:46,808
Metro finance staff

2491
01:24:46,809 --> 01:24:48,489
that were working part-time coming

2492
01:24:48,490 --> 01:24:50,090
out of retirement to help us, namely

2493
01:24:50,091 --> 01:24:52,808
Wayne Block and Kathy Schwann,

2494
01:24:52,809 --> 01:24:54,629
two folks that we used to see a

2495
01:24:54,630 --> 01:24:55,889
lot at finance committee meetings

2496
01:24:55,890 --> 01:24:57,429
before they retired?

2497
01:24:57,430 --> 01:24:58,549
Are they still helping out along

2498
01:24:58,550 --> 01:25:00,509
with the history of Metro

2499
01:25:00,510 --> 01:25:02,369
finances, etc.?

2500
01:25:02,370 --> 01:25:04,209
Yeah that's actually one thing that

2501
01:25:04,210 --> 01:25:06,289
has been really

2502
01:25:06,290 --> 01:25:08,229
great actually to have is Wayne

2503
01:25:08,230 --> 01:25:09,808
kind of in our back pocket to be

2504
01:25:09,809 --> 01:25:11,269
able to reach out and be like how

2505
01:25:11,270 --> 01:25:13,369
did how was this calculated how

2506
01:25:13,370 --> 01:25:15,189
did we do this how how

2507
01:25:15,190 --> 01:25:16,289
were we using that and Wayne

2508
01:25:16,290 --> 01:25:18,209
actually just helped us get through

2509
01:25:18,210 --> 01:25:20,289
our single audit and and whatnot

2510
01:25:20,290 --> 01:25:22,329
so I know you've been having

2511
01:25:22,330 --> 01:25:23,849
conversations and other staff have

2512
01:25:23,850 --> 01:25:25,449
been having conversations with

2513
01:25:25,450 --> 01:25:27,529
Wayne. Kathy Schwinn, she

2514
01:25:27,530 --> 01:25:29,209
was ready to.

2515
01:25:29,210 --> 01:25:30,629
Go off and be retired.

2516
01:25:30,630 --> 01:25:32,109
So we've had less interaction with

2517
01:25:32,110 --> 01:25:33,969
Kathy since I think it was back in

2518
01:25:33,970 --> 01:25:34,989
December.

2519
01:25:34,990 --> 01:25:36,808
She decided it was she

2520
01:25:36,809 --> 01:25:38,569
needed to to go

2521
01:25:39,630 --> 01:25:41,250
Be retired so

2522
01:25:43,200 --> 01:25:45,139
I appreciate that I certainly

2523
01:25:45,140 --> 01:25:46,619
can't be grudger that I'm happy that

2524
01:25:46,620 --> 01:25:48,759
you have Wayne as a institutional

2525
01:25:48,760 --> 01:25:50,279
memory to help you with the

2526
01:25:50,280 --> 01:25:51,479
financial issues that you're

2527
01:25:51,480 --> 01:25:54,079
struggling with here and

2528
01:25:54,080 --> 01:25:55,519
working to get Metro's financial

2529
01:25:55,520 --> 01:25:57,639
house back in order.

2530
01:25:57,640 --> 01:25:59,819
But why don't I perhaps

2531
01:25:59,820 --> 01:26:01,779
ask some questions.

2532
01:26:01,780 --> 01:26:03,739
Uh, in no particular

2533
01:26:03,740 --> 01:26:05,759
order, I will admit, beginning

2534
01:26:05,760 --> 01:26:07,539
perhaps with the service contract

2535
01:26:07,540 --> 01:26:09,239
issue, and admittedly, us

2536
01:26:09,240 --> 01:26:11,859
policymakers haven't.

2537
01:26:11,860 --> 01:26:13,759
Seen or heard much about the

2538
01:26:13,760 --> 01:26:15,599
service contracts since

2539
01:26:15,600 --> 01:26:17,599
we kind of reformed the process

2540
01:26:17,600 --> 01:26:19,279
many years ago where individual

2541
01:26:19,280 --> 01:26:21,419
contracts no longer go to the

2542
01:26:21,420 --> 01:26:22,919
transportation commission or the

2543
01:26:22,920 --> 01:26:24,779
common council and they're more

2544
01:26:24,780 --> 01:26:26,159
handled administratively, as you

2545
01:26:26,160 --> 01:26:27,999
said, kind of auto-renewed

2546
01:26:28,000 --> 01:26:29,119
and so forth.

2547
01:26:29,120 --> 01:26:30,939
So as it relates to those service

2548
01:26:30,940 --> 01:26:32,359
contracts, just to make sure that

2549
01:26:32,360 --> 01:26:33,899
we're on, I am understanding

2550
01:26:33,900 --> 01:26:36,119
correctly, the service contract,

2551
01:26:36,120 --> 01:26:37,999
that would include.

2552
01:26:38,000 --> 01:26:39,899
Are contracts with major

2553
01:26:39,900 --> 01:26:41,739
employers like the hospitals

2554
01:26:41,740 --> 01:26:42,800
UW correct?

2555
01:26:44,320 --> 01:26:46,639
So we have a variety of contracts.

2556
01:26:46,640 --> 01:26:48,799
We have the partner agreements

2557
01:26:48,800 --> 01:26:50,719
with the communities, we have the

2558
01:26:50,720 --> 01:26:52,479
W contracts, which actually we have

2559
01:26:52,480 --> 01:26:55,139
two with them, hospitals,

2560
01:26:55,140 --> 01:26:56,419
the other colleges.

2561
01:26:56,420 --> 01:26:57,959
The ones that auto-renewed that I

2562
01:26:57,960 --> 01:26:59,519
mentioned, those are the ones with

2563
01:26:59,520 --> 01:27:01,079
the partner communities.

2564
01:27:01,080 --> 01:27:02,999
And they do all have clauses in

2565
01:27:03,000 --> 01:27:04,859
there that are reopeners that we

2566
01:27:04,860 --> 01:27:06,259
can come back and say, hey, we need

2567
01:27:06,260 --> 01:27:07,679
to have some conversation

2568
01:27:08,720 --> 01:27:10,879
and this Warren

2569
01:27:10,880 --> 01:27:11,979
conversation.

2570
01:27:13,670 --> 01:27:14,709
Yes, thanks.

2571
01:27:14,710 --> 01:27:15,808
I'm glad we're clarifying the

2572
01:27:15,809 --> 01:27:17,189
vocabulary here.

2573
01:27:17,190 --> 01:27:19,049
So service contracts do include

2574
01:27:19,050 --> 01:27:21,269
intergovernmental,

2575
01:27:21,270 --> 01:27:22,330
local partners,

2576
01:27:23,590 --> 01:27:25,189
like say, Fitchford, Middleton, Sun

2577
01:27:25,190 --> 01:27:26,289
Prairie.

2578
01:27:27,930 --> 01:27:29,909
Okay. And then our service contracts

2579
01:27:29,910 --> 01:27:31,829
also then are also

2580
01:27:31,830 --> 01:27:34,129
include, as you say, UW employees

2581
01:27:34,130 --> 01:27:36,249
and hospital employees,

2582
01:27:36,250 --> 01:27:37,629
UW student bus paths.

2583
01:27:37,630 --> 01:27:39,649
Those are also all

2584
01:27:39,650 --> 01:27:41,609
service contracts that

2585
01:27:41,610 --> 01:27:43,209
have re-openers.

2586
01:27:43,210 --> 01:27:45,029
I guess everything

2587
01:27:45,030 --> 01:27:47,029
has a flaws to

2588
01:27:47,030 --> 01:27:48,949
it that we can come in and either

2589
01:27:48,950 --> 01:27:50,769
reopen or terminate

2590
01:27:50,770 --> 01:27:52,909
and start fresh or

2591
01:27:52,910 --> 01:27:53,910
whatnot.

2592
01:27:54,559 --> 01:27:55,959
Why don't I pause there because I

2593
01:27:55,960 --> 01:27:57,819
see Christoph Mayer is

2594
01:27:57,820 --> 01:28:00,099
seeking to help answer

2595
01:28:00,100 --> 01:28:01,558
my question.

2596
01:28:01,559 --> 01:28:03,439
Yeah, no, I think it's worth

2597
01:28:03,440 --> 01:28:05,279
probably separating that we have two

2598
01:28:05,280 --> 01:28:07,019
kinds of contracts.

2599
01:28:07,020 --> 01:28:09,019
One kind of contract is basically a

2600
01:28:09,020 --> 01:28:11,159
fair contract where somebody

2601
01:28:11,160 --> 01:28:13,379
has a contract with us where they

2602
01:28:13,380 --> 01:28:15,839
essentially bulk purchase fares.

2603
01:28:15,840 --> 01:28:17,619
The other contract is a purchase of

2604
01:28:17,620 --> 01:28:18,919
service contract where somebody who

2605
01:28:18,920 --> 01:28:20,439
has a contact with us where we

2606
01:28:20,440 --> 01:28:21,879
operate service.

2607
01:28:21,880 --> 01:28:23,719
In some cases like UW,

2608
01:28:23,720 --> 01:28:25,589
they have both of those.

2609
01:28:25,590 --> 01:28:27,169
And both of those obviously have

2610
01:28:27,170 --> 01:28:28,369
different economic drivers.

2611
01:28:28,370 --> 01:28:29,669
When we're purchasing fares, the

2612
01:28:29,670 --> 01:28:31,069
question is what rate are they

2613
01:28:31,070 --> 01:28:32,489
purchasing those fares at compared

2614
01:28:32,490 --> 01:28:34,689
to what a regular rider pays.

2615
01:28:34,690 --> 01:28:37,029
When they're purchasing service,

2616
01:28:37,030 --> 01:28:39,029
the question how does that

2617
01:28:39,030 --> 01:28:40,350
rate at which they're the purchasing

2618
01:28:40,351 --> 01:28:42,329
the service compared to.

2619
01:28:42,330 --> 01:28:44,209
The actual cost of operating that

2620
01:28:44,210 --> 01:28:45,789
service. So in terms of purchase of

2621
01:28:45,790 --> 01:28:47,149
service we have the school district,

2622
01:28:47,150 --> 01:28:49,049
we have UW, and we have

2623
01:28:49,050 --> 01:28:50,589
partner communities.

2624
01:28:50,590 --> 01:28:52,769
In terms of Purchase Affairs,

2625
01:28:52,770 --> 01:28:53,969
partner communities aren't doing

2626
01:28:53,970 --> 01:28:55,129
that.

2627
01:28:55,130 --> 01:28:57,069
UW and MMSD are,

2628
01:28:57,070 --> 01:28:58,069
and then a number of other

2629
01:28:58,070 --> 01:28:59,070
employers.

2630
01:29:00,880 --> 01:29:01,919
Yeah, thank you for the

2631
01:29:01,920 --> 01:29:03,999
clarification, Christophe.

2632
01:29:04,000 --> 01:29:05,859
So one of you anticipated some of

2633
01:29:05,860 --> 01:29:07,179
my follow up questions.

2634
01:29:07,180 --> 01:29:09,099
And again, anybody can answer these

2635
01:29:09,100 --> 01:29:10,359
not directed to anyone in

2636
01:29:10,360 --> 01:29:11,739
particular.

2637
01:29:11,740 --> 01:29:13,699
One of the areas that we've heard in

2638
01:29:13,700 --> 01:29:15,679
the past, particularly when Eric

2639
01:29:15,680 --> 01:29:17,919
Eric Nepp talking and

2640
01:29:17,920 --> 01:29:20,959
this committee forum about

2641
01:29:20,960 --> 01:29:22,659
financial issues when he was interim

2642
01:29:22,660 --> 01:29:24,539
general manager was the

2643
01:29:24,540 --> 01:29:26,359
MMSD Dodger

2644
01:29:26,360 --> 01:29:28,229
School Service.

2645
01:29:28,230 --> 01:29:29,609
And those monies that never

2646
01:29:29,610 --> 01:29:31,609
materialized to the extent

2647
01:29:31,610 --> 01:29:34,289
that we had anticipated.

2648
01:29:34,290 --> 01:29:36,549
Could you, many of you speak to

2649
01:29:36,550 --> 01:29:37,829
that and.

2650
01:29:41,290 --> 01:29:42,229
Sure.

2651
01:29:42,230 --> 01:29:44,829
Yeah, we recently started

2652
01:29:44,830 --> 01:29:47,049
having conversations with MMSD

2653
01:29:47,050 --> 01:29:49,229
around the way that our

2654
01:29:49,230 --> 01:29:51,589
work roles are formed and we

2655
01:29:51,590 --> 01:29:53,909
essentially run that service on

2656
01:29:53,910 --> 01:29:55,930
100% overtime, essentially.

2657
01:29:57,550 --> 01:29:59,949
So, MMS was able

2658
01:29:59,950 --> 01:30:02,729
to raise essentially

2659
01:30:02,730 --> 01:30:05,829
their budget line item for

2660
01:30:05,830 --> 01:30:07,209
purchase of transportation through

2661
01:30:07,210 --> 01:30:09,209
us for

2662
01:30:09,210 --> 01:30:11,579
the Bye bye.

2663
01:30:11,580 --> 01:30:12,779
I always get their school years

2664
01:30:12,780 --> 01:30:13,639
wrong.

2665
01:30:13,640 --> 01:30:15,659
Their 25,

2666
01:30:15,660 --> 01:30:17,539
26 school

2667
01:30:17,540 --> 01:30:19,659
year, and then going into the 27

2668
01:30:19,660 --> 01:30:21,619
and 28 school year

2669
01:30:21,620 --> 01:30:22,919
minimally.

2670
01:30:22,920 --> 01:30:24,839
I think we saw that go from

2671
01:30:24,840 --> 01:30:26,659
about 700,

2672
01:30:26,660 --> 01:30:28,679
and I think it was 780K to about

2673
01:30:28,680 --> 01:30:29,999
1.2 million.

2674
01:30:31,160 --> 01:30:33,359
Whereas our fully loaded cost

2675
01:30:33,360 --> 01:30:35,679
is well into

2676
01:30:35,680 --> 01:30:37,779
two and a half, three million

2677
01:30:37,780 --> 01:30:39,359
to provide that service.

2678
01:30:39,360 --> 01:30:41,459
So. We've already started to

2679
01:30:41,460 --> 01:30:43,599
have those conversations around what

2680
01:30:43,600 --> 01:30:45,199
does it look like and where can we

2681
01:30:45,200 --> 01:30:47,359
start to,

2682
01:30:47,360 --> 01:30:49,319
as Metro, look at

2683
01:30:49,320 --> 01:30:51,339
providing that level

2684
01:30:51,340 --> 01:30:53,279
of service that they require and

2685
01:30:53,280 --> 01:30:54,879
that they need for their students

2686
01:30:54,880 --> 01:30:56,759
and how we can do it within

2687
01:30:56,760 --> 01:30:58,779
our existing contact and work

2688
01:30:58,780 --> 01:31:00,539
roles with our employees and how

2689
01:31:00,540 --> 01:31:03,099
make that work happen and

2690
01:31:03,100 --> 01:31:05,019
how can we, I guess,

2691
01:31:05,020 --> 01:31:07,079
kind of both come out in a position

2692
01:31:07,080 --> 01:31:09,009
where where it works out for us

2693
01:31:09,010 --> 01:31:10,549
to be able to provide the service

2694
01:31:10,550 --> 01:31:12,609
and then they are able to help

2695
01:31:12,610 --> 01:31:14,609
fund the service at the right size.

2696
01:31:14,610 --> 01:31:15,829
So we've begun to have those

2697
01:31:15,830 --> 01:31:16,830
conversations.

2698
01:31:18,559 --> 01:31:20,319
That's great to hear.

2699
01:31:21,340 --> 01:31:23,279
And as it relates more to overall

2700
01:31:23,280 --> 01:31:25,459
overtime, and obviously

2701
01:31:25,460 --> 01:31:27,499
you had shared with us

2702
01:31:27,500 --> 01:31:29,699
what the current estimate is and

2703
01:31:29,700 --> 01:31:31,659
the deficit for

2704
01:31:31,660 --> 01:31:32,479
overtime.

2705
01:31:32,480 --> 01:31:34,519
I know much of this is built

2706
01:31:34,520 --> 01:31:35,799
into the Teamsters collective

2707
01:31:35,800 --> 01:31:37,799
bargaining agreement in

2708
01:31:37,800 --> 01:31:39,840
terms of some guaranteed overtime.

2709
01:31:41,520 --> 01:31:43,979
How much of the overtime projected?

2710
01:31:43,980 --> 01:31:44,980
In the next one.

2711
01:31:45,330 --> 01:31:47,389
Deficit or the overtime contributing

2712
01:31:47,390 --> 01:31:49,329
to your projected deficit,

2713
01:31:49,330 --> 01:31:51,249
would you say relates to

2714
01:31:51,250 --> 01:31:53,308
the MMSD

2715
01:31:53,309 --> 01:31:55,490
Dodger issue you just spoke of?

2716
01:31:56,809 --> 01:31:57,689
Is it a fair amount?

2717
01:31:57,690 --> 01:31:58,439
Thank you.

2718
01:31:58,440 --> 01:32:00,058
Doug into that dollar amount

2719
01:32:00,059 --> 01:32:01,739
exactly, but we could probably get

2720
01:32:01,740 --> 01:32:02,899
you that dollar amounts.

2721
01:32:02,900 --> 01:32:04,839
The one thing that I would

2722
01:32:04,840 --> 01:32:06,839
say is that we

2723
01:32:06,840 --> 01:32:08,799
are experiencing overtime from not

2724
01:32:08,800 --> 01:32:10,979
just the operators, it's also in

2725
01:32:10,980 --> 01:32:13,119
the shop with the mechanics and

2726
01:32:13,120 --> 01:32:14,459
keeping up with our maintenance.

2727
01:32:14,460 --> 01:32:16,159
And then also, you know, across

2728
01:32:16,160 --> 01:32:18,259
administration and

2729
01:32:18,260 --> 01:32:20,739
the work groups that are doing

2730
01:32:20,740 --> 01:32:22,259
some other behind the scenes work,

2731
01:32:22,260 --> 01:32:23,699
whether that's our payroll and

2732
01:32:23,700 --> 01:32:25,419
timekeeping people or our.

2733
01:32:25,420 --> 01:32:27,299
Our admin staff and

2734
01:32:27,300 --> 01:32:28,839
whatnot, customer service reps.

2735
01:32:28,840 --> 01:32:30,519
So we can probably get that broken

2736
01:32:30,520 --> 01:32:32,599
out here relatively easy and

2737
01:32:32,600 --> 01:32:34,279
provide that if that would be

2738
01:32:34,280 --> 01:32:35,280
helpful.

2739
01:32:35,910 --> 01:32:37,789
Thank you and all and all of not

2740
01:32:37,790 --> 01:32:39,049
all of those folks, but most of them

2741
01:32:39,050 --> 01:32:40,029
are covered by the collective

2742
01:32:40,030 --> 01:32:41,469
bargaining agreement correct the

2743
01:32:41,470 --> 01:32:43,709
mechanics the dispatchers.

2744
01:32:44,880 --> 01:32:47,479
No, not so much the dispatchers.

2745
01:32:47,480 --> 01:32:49,119
Essentially, we've got our

2746
01:32:49,120 --> 01:32:51,419
operators. We've got some training

2747
01:32:51,420 --> 01:32:53,679
supervisors and

2748
01:32:53,680 --> 01:32:54,659
operations.

2749
01:32:54,660 --> 01:32:56,379
Everybody else is non-rep.

2750
01:32:56,380 --> 01:32:59,439
And then we do have our

2751
01:32:59,440 --> 01:33:00,520
customer service reps

2752
01:33:01,620 --> 01:33:03,799
and some people

2753
01:33:03,800 --> 01:33:06,199
in timekeeping and admin

2754
01:33:06,200 --> 01:33:08,119
that are representative and then our

2755
01:33:08,120 --> 01:33:09,058
shop employees.

2756
01:33:09,059 --> 01:33:10,639
So I can get that broken out, too,

2757
01:33:10,640 --> 01:33:12,299
if that would be helpful.

2758
01:33:12,300 --> 01:33:13,619
Thank you.

2759
01:33:13,620 --> 01:33:15,699
Is it fair to say that

2760
01:33:15,700 --> 01:33:17,639
a good portion of

2761
01:33:17,640 --> 01:33:19,199
the overtime is built into the

2762
01:33:19,200 --> 01:33:20,919
collective bargaining agreement or

2763
01:33:20,920 --> 01:33:22,699
would you say that that's not

2764
01:33:22,700 --> 01:33:24,259
necessarily the case and it's more

2765
01:33:24,260 --> 01:33:26,058
that you just start dealing

2766
01:33:26,059 --> 01:33:28,058
currently with still a number

2767
01:33:28,059 --> 01:33:29,999
of vacancies as I

2768
01:33:30,000 --> 01:33:31,639
think since the pandemic Metro in

2769
01:33:31,640 --> 01:33:33,499
particular has had unfortunate

2770
01:33:33,500 --> 01:33:34,699
problems with recruitment and

2771
01:33:34,700 --> 01:33:36,019
retention.

2772
01:33:36,020 --> 01:33:38,079
Yeah, I think I think we have some

2773
01:33:38,080 --> 01:33:40,119
some level of vacancy, but I do

2774
01:33:40,120 --> 01:33:41,639
think that there is, you know,

2775
01:33:41,640 --> 01:33:42,799
there's there's some things built

2776
01:33:42,800 --> 01:33:45,759
into the CBA that definitely

2777
01:33:45,760 --> 01:33:47,160
drive drive over time.

2778
01:33:49,420 --> 01:33:50,899
And how are you doing with

2779
01:33:50,900 --> 01:33:52,639
vacancies, would you say, especially

2780
01:33:52,640 --> 01:33:54,058
operators?

2781
01:33:54,059 --> 01:33:56,519
Operators right now are

2782
01:33:56,520 --> 01:34:00,058
looking OK.

2783
01:34:00,059 --> 01:34:02,679
The last numbers that I saw,

2784
01:34:02,680 --> 01:34:03,681
we were

2785
01:34:05,860 --> 01:34:08,558
getting ready to start a new class.

2786
01:34:08,559 --> 01:34:10,459
And so I think we

2787
01:34:10,460 --> 01:34:12,739
had just wrapped up interviews.

2788
01:34:12,740 --> 01:34:14,080
I want to say.

2789
01:34:16,860 --> 01:34:18,439
For some reason, 10, I've been

2790
01:34:18,440 --> 01:34:19,719
looking at a lot of numbers and for

2791
01:34:19,720 --> 01:34:21,558
some reason like 10 is

2792
01:34:21,559 --> 01:34:23,199
standing out to me right now, but I

2793
01:34:23,200 --> 01:34:24,759
can get vacancy numbers for you as

2794
01:34:24,760 --> 01:34:25,760
well.

2795
01:34:26,010 --> 01:34:27,029
For the department.

2796
01:34:27,030 --> 01:34:29,449
Thanks, but I appreciate that.

2797
01:34:29,450 --> 01:34:30,349
These aren't time-sensitive

2798
01:34:30,350 --> 01:34:32,489
questions by any means.

2799
01:34:32,490 --> 01:34:34,769
And then moving into paratransit,

2800
01:34:34,770 --> 01:34:36,490
a follow-up question or two there.

2801
01:34:37,610 --> 01:34:39,869
The three current providers whose

2802
01:34:39,870 --> 01:34:41,569
contracts all expire at the end of

2803
01:34:41,570 --> 01:34:43,469
this year, do you know

2804
01:34:43,470 --> 01:34:45,349
at this point if

2805
01:34:45,350 --> 01:34:47,229
each of those providers

2806
01:34:47,230 --> 01:34:49,229
is interested in continuing their

2807
01:34:49,230 --> 01:34:51,439
relationship with us?

2808
01:34:51,440 --> 01:34:53,899
Um so actually the contracts expired

2809
01:34:53,900 --> 01:34:56,459
June 30 of 27 um

2810
01:34:56,460 --> 01:34:58,319
so we have we have time to

2811
01:34:58,320 --> 01:35:00,199
get a new RFP out and we have

2812
01:35:00,200 --> 01:35:02,119
a draft um at

2813
01:35:02,120 --> 01:35:03,779
this time I have not heard that

2814
01:35:03,780 --> 01:35:06,119
anybody's not interested in in

2815
01:35:06,120 --> 01:35:07,739
submitting a proposal for

2816
01:35:07,740 --> 01:35:09,899
paratransit but um

2817
01:35:09,900 --> 01:35:11,959
I do know that we're we're

2818
01:35:11,960 --> 01:35:13,819
looking at the RFP in the way that

2819
01:35:13,820 --> 01:35:16,039
we are needing to deliver service

2820
01:35:16,040 --> 01:35:17,879
and making sure that that is a

2821
01:35:17,880 --> 01:35:19,859
high quality So I

2822
01:35:21,559 --> 01:35:23,419
customer service focus,

2823
01:35:23,420 --> 01:35:24,420
we're receiving,

2824
01:35:25,300 --> 01:35:26,679
we've been having some challenges

2825
01:35:26,680 --> 01:35:28,539
around Parachanza in some

2826
01:35:28,540 --> 01:35:30,439
of the contractors and some

2827
01:35:30,440 --> 01:35:31,939
of the behaviors that we've been

2828
01:35:31,940 --> 01:35:34,219
experiencing and some deficiencies

2829
01:35:34,220 --> 01:35:36,199
in the program. So we're looking at

2830
01:35:36,200 --> 01:35:38,138
really standing that program up in

2831
01:35:38,139 --> 01:35:38,919
a different way.

2832
01:35:38,920 --> 01:35:40,899
And I have not heard

2833
01:35:40,900 --> 01:35:42,979
yet that the three writers

2834
01:35:42,980 --> 01:35:45,099
would not submit an

2835
01:35:45,100 --> 01:35:47,079
on-suite or

2836
01:35:47,080 --> 01:35:48,080
submit for the RFP.

2837
01:35:49,290 --> 01:35:51,308
Yeah, so I think it's I appreciate

2838
01:35:51,309 --> 01:35:52,209
that and it's important to

2839
01:35:52,210 --> 01:35:53,709
acknowledge that I think all of us

2840
01:35:53,710 --> 01:35:54,729
on the council have probably

2841
01:35:54,730 --> 01:35:56,649
received concerns from

2842
01:35:56,650 --> 01:35:58,609
paratransit writers about their

2843
01:35:58,610 --> 01:35:59,969
difficulties that they've had with

2844
01:35:59,970 --> 01:36:00,970
their experiences.

2845
01:36:02,950 --> 01:36:04,589
And I know that you're well aware of

2846
01:36:04,590 --> 01:36:05,589
that Jamie.

2847
01:36:05,590 --> 01:36:07,449
I'm

2848
01:36:07,450 --> 01:36:09,529
actually giving a presentation on

2849
01:36:09,530 --> 01:36:12,609
Wednesday nights at TC

2850
01:36:12,610 --> 01:36:14,429
about this.

2851
01:36:14,430 --> 01:36:15,808
Yeah. One of the things I noticed

2852
01:36:15,809 --> 01:36:17,749
when I looked at that

2853
01:36:17,750 --> 01:36:19,869
PowerPoint presentation that

2854
01:36:19,870 --> 01:36:21,749
you are anticipating

2855
01:36:21,750 --> 01:36:23,569
sharing at TC meeting this

2856
01:36:23,570 --> 01:36:25,789
week was suggesting

2857
01:36:25,790 --> 01:36:28,089
hiring a mobility manager.

2858
01:36:28,090 --> 01:36:29,629
And I was surprised.

2859
01:36:29,630 --> 01:36:31,589
I always thought that we had a

2860
01:36:31,590 --> 01:36:33,989
paratransit manager,

2861
01:36:33,990 --> 01:36:35,909
but apparently it has not

2862
01:36:35,910 --> 01:36:37,709
been the case that we haven't had a

2863
01:36:37,710 --> 01:36:39,638
position like that recently.

2864
01:36:39,639 --> 01:36:41,459
Yeah, my understanding is that there

2865
01:36:41,460 --> 01:36:43,419
was some movement in

2866
01:36:43,420 --> 01:36:45,859
the org chart around paratransit

2867
01:36:45,860 --> 01:36:48,058
and some shifting and that

2868
01:36:48,059 --> 01:36:50,179
there is essentially,

2869
01:36:50,180 --> 01:36:52,339
after the dust settled,

2870
01:36:52,340 --> 01:36:54,439
a paratranit supervisor

2871
01:36:54,440 --> 01:36:56,979
and two paratransit,

2872
01:36:56,980 --> 01:36:59,779
one was an eligibility assessor

2873
01:36:59,780 --> 01:37:01,579
and I believe that's the working

2874
01:37:01,580 --> 01:37:03,519
title, and then the other was

2875
01:37:03,520 --> 01:37:05,679
essentially a rights coordinator.

2876
01:37:05,680 --> 01:37:07,558
And they were, they

2877
01:37:07,559 --> 01:37:09,459
were standing up the program

2878
01:37:09,460 --> 01:37:11,199
in conjunction with the customer

2879
01:37:11,200 --> 01:37:13,319
service representatives in

2880
01:37:13,320 --> 01:37:15,719
conjunction with some

2881
01:37:15,720 --> 01:37:17,899
support from the customer services

2882
01:37:17,900 --> 01:37:19,899
supervisor. It was, it was kind of

2883
01:37:19,900 --> 01:37:21,799
an all hands on deck to,

2884
01:37:21,800 --> 01:37:23,879
to me, parent transit

2885
01:37:23,880 --> 01:37:26,059
operate, so.

2886
01:37:27,410 --> 01:37:29,569
Yeah, it sounds like my goal

2887
01:37:29,570 --> 01:37:31,569
around that would be in

2888
01:37:31,570 --> 01:37:33,329
and we have a position available

2889
01:37:33,330 --> 01:37:35,449
that would be converted into

2890
01:37:35,450 --> 01:37:37,388
that would essentially to

2891
01:37:37,389 --> 01:37:39,489
really do a lot of the oversight

2892
01:37:39,490 --> 01:37:41,409
and the contract management and get

2893
01:37:41,410 --> 01:37:43,649
into that day to day

2894
01:37:43,650 --> 01:37:45,429
kind of looking at the quality of

2895
01:37:45,430 --> 01:37:46,969
the program that's being provided

2896
01:37:46,970 --> 01:37:48,589
and having those regular meetings

2897
01:37:48,590 --> 01:37:51,049
and really able to support

2898
01:37:51,050 --> 01:37:52,929
the staff and stand of the program

2899
01:37:52,930 --> 01:37:53,930
in a way that.

2900
01:37:54,950 --> 01:37:56,469
I would, I would think that we would

2901
01:37:56,470 --> 01:37:57,830
all want it to stop.

2902
01:38:00,880 --> 01:38:02,539
Thank you, and I won't ask too many

2903
01:38:02,540 --> 01:38:05,219
more questions. I know we have other

2904
01:38:05,220 --> 01:38:07,159
general questions of finance

2905
01:38:07,160 --> 01:38:09,019
staff and then folks

2906
01:38:09,020 --> 01:38:10,199
from the community that probably are

2907
01:38:10,200 --> 01:38:11,999
waiting to speak under general

2908
01:38:12,000 --> 01:38:13,539
public comment still.

2909
01:38:13,540 --> 01:38:15,399
So I'll try to not ask too

2910
01:38:15,400 --> 01:38:17,039
any other questions, but perhaps

2911
01:38:17,040 --> 01:38:19,019
here in closing, as it relates

2912
01:38:19,020 --> 01:38:20,539
to Metro Transit.

2913
01:38:22,420 --> 01:38:24,239
When we received,

2914
01:38:24,240 --> 01:38:26,159
as I mentioned earlier,

2915
01:38:26,160 --> 01:38:28,079
our 2027 operating budget

2916
01:38:28,080 --> 01:38:28,959
outlook.

2917
01:38:28,960 --> 01:38:32,079
From the finance team in

2918
01:38:32,080 --> 01:38:33,479
this committee a month ago, and then

2919
01:38:33,480 --> 01:38:35,419
the council received the exact same

2920
01:38:35,420 --> 01:38:37,580
presentation a week later.

2921
01:38:39,040 --> 01:38:40,979
Director Schmidke had mentioned

2922
01:38:40,980 --> 01:38:43,779
three main reasons why

2923
01:38:43,780 --> 01:38:45,339
at the time, at least they were

2924
01:38:45,340 --> 01:38:46,759
projecting a nine and a half million

2925
01:38:46,760 --> 01:38:48,919
dollar additional metro

2926
01:38:48,920 --> 01:38:50,659
subsidy from the general fund next

2927
01:38:50,660 --> 01:38:52,499
year, and increased

2928
01:38:52,500 --> 01:38:53,819
personnel was one,

2929
01:38:54,840 --> 01:38:57,119
paratransit provider cost was two,

2930
01:38:57,120 --> 01:38:59,109
And the third was...

2931
01:38:59,110 --> 01:39:01,649
Rising fuel costs and

2932
01:39:01,650 --> 01:39:03,709
if you if we if

2933
01:39:03,710 --> 01:39:04,929
I'm perhaps I missed it but I

2934
01:39:04,930 --> 01:39:06,449
haven't heard fuel mentioned.

2935
01:39:07,790 --> 01:39:09,709
Yet in the in this discussion.

2936
01:39:11,809 --> 01:39:13,308
Yeah obviously we're probably

2937
01:39:13,309 --> 01:39:15,169
electrifying the fleet here and

2938
01:39:15,170 --> 01:39:17,109
so it's not as big an issue as it

2939
01:39:17,110 --> 01:39:17,969
would have been years and a few

2940
01:39:17,970 --> 01:39:19,888
years back, but could you

2941
01:39:19,889 --> 01:39:21,949
speak to. To the

2942
01:39:21,950 --> 01:39:23,888
diesel fuel prices and so forth and

2943
01:39:23,889 --> 01:39:25,769
how that's affecting your agency and

2944
01:39:25,770 --> 01:39:27,629
how it fits into the

2945
01:39:27,630 --> 01:39:29,929
projected deficit for this year.

2946
01:39:29,930 --> 01:39:31,929
Yeah so right now our

2947
01:39:31,930 --> 01:39:33,869
fuel costs are currently locked in

2948
01:39:33,870 --> 01:39:35,869
at a relatively affordable

2949
01:39:35,870 --> 01:39:37,469
rate which is why you're not seeing

2950
01:39:37,470 --> 01:39:40,089
it be such a huge driver.

2951
01:39:40,090 --> 01:39:42,109
My understanding and Dave correct

2952
01:39:42,110 --> 01:39:43,669
me if I'm wrong I'm not completely

2953
01:39:43,670 --> 01:39:45,629
familiar with the the details of

2954
01:39:45,630 --> 01:39:47,529
the the contract for the city's fuel

2955
01:39:47,530 --> 01:39:49,799
but that rate

2956
01:39:49,800 --> 01:39:51,679
is not going to be held going

2957
01:39:51,680 --> 01:39:53,638
into 2027, which is part of

2958
01:39:53,639 --> 01:39:55,459
the protection of the increase

2959
01:39:55,460 --> 01:39:57,419
that you'll see associated

2960
01:39:57,420 --> 01:39:58,899
with fuel for us then.

2961
01:39:58,900 --> 01:40:01,159
So we'll go from a variable,

2962
01:40:01,160 --> 01:40:02,999
it sounds like a locked-in rate to a

2963
01:40:03,000 --> 01:40:04,919
more volatile or variable

2964
01:40:04,920 --> 01:40:05,739
rate.

2965
01:40:05,740 --> 01:40:06,839
Is that accurate, David?

2966
01:40:06,840 --> 01:40:07,840
Yeah, that's correct.

2967
01:40:08,809 --> 01:40:10,249
Yeah, that makes complete sense.

2968
01:40:10,250 --> 01:40:11,289
Thanks for explaining that Dave.

2969
01:40:11,290 --> 01:40:12,549
Do you want to speak to do you know

2970
01:40:12,550 --> 01:40:14,429
when then are the

2971
01:40:14,430 --> 01:40:16,649
current contract dance.

2972
01:40:16,650 --> 01:40:18,589
Right, so we have futures contracts

2973
01:40:18,590 --> 01:40:20,629
on metro fuel basically

2974
01:40:20,630 --> 01:40:21,829
through the end of the calendar

2975
01:40:21,830 --> 01:40:23,729
year, depending on how much fuel

2976
01:40:23,730 --> 01:40:25,549
metro uses that

2977
01:40:25,550 --> 01:40:28,388
might go into calendar year 27,

2978
01:40:28,389 --> 01:40:30,409
but that's not

2979
01:40:30,410 --> 01:40:31,410
really expected.

2980
01:40:32,630 --> 01:40:35,049
So that's the cost

2981
01:40:35,050 --> 01:40:38,089
increase that we're seeing in 27

2982
01:40:38,090 --> 01:40:40,409
is that relative

2983
01:40:40,410 --> 01:40:42,329
change in price per

2984
01:40:42,330 --> 01:40:44,289
gallon coming off of

2985
01:40:44,290 --> 01:40:45,779
the futures contracts.

2986
01:40:45,780 --> 01:40:46,780
For much more.

2987
01:40:48,430 --> 01:40:50,569
And then perhaps the ending on my

2988
01:40:50,570 --> 01:40:52,029
part with questions about metro

2989
01:40:52,030 --> 01:40:53,649
transit. Why don't I perhaps ask

2990
01:40:53,650 --> 01:40:55,549
you, Dave, then my last question

2991
01:40:55,550 --> 01:40:56,749
on transit and that would be

2992
01:40:59,050 --> 01:41:00,509
It's obviously been about a month

2993
01:41:00,510 --> 01:41:02,009
since you provided at least this

2994
01:41:02,010 --> 01:41:04,509
committee or 27

2995
01:41:04,510 --> 01:41:06,589
operating budget outlook.

2996
01:41:06,590 --> 01:41:08,449
Would you still say that today

2997
01:41:08,450 --> 01:41:10,729
your team would be suggesting

2998
01:41:10,730 --> 01:41:12,369
it's you're still estimating a nine

2999
01:41:12,370 --> 01:41:13,709
and a half million dollar additional

3000
01:41:13,710 --> 01:41:15,549
metro subsidy needed for

3001
01:41:15,550 --> 01:41:16,550
next year.

3002
01:41:18,700 --> 01:41:20,759
We just got agency

3003
01:41:20,760 --> 01:41:23,199
requests and

3004
01:41:23,200 --> 01:41:25,039
we still need to talk with

3005
01:41:25,040 --> 01:41:27,579
METRO about

3006
01:41:27,580 --> 01:41:30,079
their specific requests.

3007
01:41:30,080 --> 01:41:31,939
And so that's the best

3008
01:41:31,940 --> 01:41:33,859
number we have at the moment, but

3009
01:41:33,860 --> 01:41:35,379
we continue to look at, and I think

3010
01:41:35,380 --> 01:41:38,279
Jamie talked about this as well,

3011
01:41:38,280 --> 01:41:39,419
really refining the federal

3012
01:41:39,420 --> 01:41:41,339
estimates, how we can use those

3013
01:41:41,340 --> 01:41:42,759
federal dollars.

3014
01:41:42,760 --> 01:41:44,759
And so, that's an ongoing process.

3015
01:41:46,360 --> 01:41:48,558
At the moment, the $9.5 million is

3016
01:41:48,559 --> 01:41:49,559
what we have.

3017
01:41:51,420 --> 01:41:53,259
Thank you, appreciate that.

3018
01:41:53,260 --> 01:41:55,079
Thank you Jamie and Christoph, all

3019
01:41:55,080 --> 01:41:56,080
you back man.

3020
01:41:56,770 --> 01:41:57,969
Thank you, Alder.

3021
01:41:57,970 --> 01:41:59,249
Alder, Lankala, questions from

3022
01:41:59,250 --> 01:42:00,519
Metro?

3023
01:42:00,520 --> 01:42:01,999
Yes, thank you, Madam Mayor.

3024
01:42:03,080 --> 01:42:05,219
Thank you, General Manager Acton,

3025
01:42:05,220 --> 01:42:06,719
for your presentation.

3026
01:42:06,720 --> 01:42:08,959
I should know this question,

3027
01:42:08,960 --> 01:42:10,279
but answer for this question what

3028
01:42:10,280 --> 01:42:11,179
I'm gonna ask.

3029
01:42:11,180 --> 01:42:13,099
I worked on a transportation

3030
01:42:13,100 --> 01:42:15,679
board before, so should

3031
01:42:15,680 --> 01:42:17,558
know the number there, but is that

3032
01:42:17,559 --> 01:42:19,739
number, you just mentioned about 60

3033
01:42:19,740 --> 01:42:20,959
vehicles out of...

3034
01:42:25,400 --> 01:42:26,558
Warranty.

3035
01:42:26,559 --> 01:42:27,619
Warrantee.

3036
01:42:27,620 --> 01:42:28,620
Thank you.

3037
01:42:30,870 --> 01:42:32,909
What percentage of vehicles

3038
01:42:32,910 --> 01:42:33,888
are those?

3039
01:42:33,889 --> 01:42:35,749
Is this historically a high number

3040
01:42:35,750 --> 01:42:38,909
or are we looking for

3041
01:42:38,910 --> 01:42:40,969
larger maintenance costs

3042
01:42:40,970 --> 01:42:42,789
because of moving forward

3043
01:42:42,790 --> 01:42:43,929
as they're getting older,

3044
01:42:45,230 --> 01:42:47,829
and does that mean that we also need

3045
01:42:47,830 --> 01:42:49,649
additional replacement of

3046
01:42:49,650 --> 01:42:51,259
all of those vehicles.

3047
01:42:51,260 --> 01:42:53,159
So the 62

3048
01:42:53,160 --> 01:42:55,558
vehicles that are

3049
01:42:55,559 --> 01:42:57,599
now out of warranty are

3050
01:42:57,600 --> 01:42:59,439
the vehicles that're

3051
01:42:59,440 --> 01:43:02,459
associated with BRT.

3052
01:43:02,460 --> 01:43:04,359
So we received those

3053
01:43:04,360 --> 01:43:06,319
in a large quantity,

3054
01:43:06,320 --> 01:43:08,159
pretty much in a very short

3055
01:43:08,160 --> 01:43:09,599
period of time.

3056
01:43:09,600 --> 01:43:11,019
And so they all came out of

3057
01:43:11,020 --> 01:43:12,979
warrantee basically at

3058
01:43:12,980 --> 01:43:14,159
the same time as well.

3059
01:43:14,160 --> 01:43:16,399
So I think

3060
01:43:16,400 --> 01:43:18,239
we will continue

3061
01:43:18,240 --> 01:43:20,159
to see costs associated it

3062
01:43:20,160 --> 01:43:22,119
with. All vehicles go

3063
01:43:22,120 --> 01:43:24,058
up at this point just based

3064
01:43:24,059 --> 01:43:25,959
on supply chain

3065
01:43:25,960 --> 01:43:27,419
demand.

3066
01:43:27,420 --> 01:43:29,080
We know that we only have two

3067
01:43:30,400 --> 01:43:32,239
essentially manufacturers in North

3068
01:43:32,240 --> 01:43:34,099
America that we are able to use

3069
01:43:34,100 --> 01:43:35,759
Proterra, not Proterrra, my

3070
01:43:35,760 --> 01:43:37,058
goodness.

3071
01:43:37,059 --> 01:43:38,459
We're looking at New Flyer.

3072
01:43:38,460 --> 01:43:40,259
Sorry, I'm thinking about a waiver

3073
01:43:40,260 --> 01:43:41,539
that I have to get.

3074
01:43:41,540 --> 01:43:43,079
We have New Flyr and Gaelic busses

3075
01:43:43,080 --> 01:43:44,080
in our fleets.

3076
01:43:45,780 --> 01:43:47,719
Once they get to a certain age

3077
01:43:47,720 --> 01:43:49,699
and mileage we are able to utilize

3078
01:43:49,700 --> 01:43:51,759
aftermarket carts but those parts

3079
01:43:51,760 --> 01:43:53,879
are not producing mass

3080
01:43:53,880 --> 01:43:55,899
quantities and the rest of the

3081
01:43:55,900 --> 01:43:57,759
you know the country is also looking

3082
01:43:57,760 --> 01:43:59,399
to try to get their hands on them,

3083
01:43:59,400 --> 01:44:01,479
so. You know, cables that

3084
01:44:01,480 --> 01:44:03,039
we had initially thought that were

3085
01:44:03,040 --> 01:44:04,859
gonna be around $5,000 are

3086
01:44:04,860 --> 01:44:06,259
now $8,000.

3087
01:44:06,260 --> 01:44:08,159
You know, things have just continued

3088
01:44:08,160 --> 01:44:09,979
to, costs have just continue to

3089
01:44:09,980 --> 01:44:11,879
increase in fleet maintenance.

3090
01:44:11,880 --> 01:44:13,699
So I think you'll see

3091
01:44:13,700 --> 01:44:15,539
that across the country.

3092
01:44:15,540 --> 01:44:17,439
We're not unique here, but

3093
01:44:17,440 --> 01:44:19,519
we do have 62

3094
01:44:19,520 --> 01:44:20,419
of them.

3095
01:44:20,420 --> 01:44:22,399
So it's 100% of

3096
01:44:22,400 --> 01:44:24,299
our BRT fleet

3097
01:44:24,300 --> 01:44:25,679
at one time.

3098
01:44:25,680 --> 01:44:27,619
And so we are starting to

3099
01:44:27,620 --> 01:44:29,439
look at ways that we can try

3100
01:44:29,440 --> 01:44:30,469
to.

3101
01:44:30,470 --> 01:44:32,349
Manage our inventory needs,

3102
01:44:32,350 --> 01:44:33,509
manage our preventative maintenance

3103
01:44:33,510 --> 01:44:34,829
within the intervals that is

3104
01:44:34,830 --> 01:44:36,429
required by the federal government,

3105
01:44:36,430 --> 01:44:38,329
and really kind of keep on top of

3106
01:44:38,330 --> 01:44:39,649
those things. But like I said,

3107
01:44:40,850 --> 01:44:42,769
just didn't take those things into

3108
01:44:42,770 --> 01:44:44,109
consideration for 20

3109
01:44:46,740 --> 01:44:48,859
So my assumption, so moving forward

3110
01:44:48,860 --> 01:44:50,779
for 27 and up, you're

3111
01:44:50,780 --> 01:44:52,659
gonna be putting those

3112
01:44:52,660 --> 01:44:54,058
into your projections.

3113
01:44:54,059 --> 01:44:55,849
So it will not be.

3114
01:44:55,850 --> 01:44:57,050
I will not let me not.

3115
01:44:58,389 --> 01:44:59,389
Yes.

3116
01:45:00,220 --> 01:45:02,359
We also do have

3117
01:45:02,360 --> 01:45:04,419
older vehicles in our fleets

3118
01:45:04,420 --> 01:45:06,459
that we are looking to retire

3119
01:45:06,460 --> 01:45:08,419
and that we will

3120
01:45:08,420 --> 01:45:10,799
be looking to right-size our fleet.

3121
01:45:10,800 --> 01:45:12,859
We have a

3122
01:45:12,860 --> 01:45:14,959
bit of grant money that we'll

3123
01:45:14,960 --> 01:45:17,079
be able to

3124
01:45:17,080 --> 01:45:19,079
kind of increase the, they

3125
01:45:19,080 --> 01:45:20,999
call it the state of good repair

3126
01:45:21,000 --> 01:45:22,879
and basically bring

3127
01:45:22,880 --> 01:45:24,799
newer vehicles in, transition

3128
01:45:24,800 --> 01:45:26,379
older vehicles, less efficient

3129
01:45:26,380 --> 01:45:27,380
vehicles out.

3130
01:45:28,250 --> 01:45:29,849
But again, it'll be a delicate

3131
01:45:29,850 --> 01:45:31,869
balance of how many do we

3132
01:45:31,870 --> 01:45:34,089
bring in at one time versus our

3133
01:45:34,090 --> 01:45:35,469
service level and making sure we

3134
01:45:35,470 --> 01:45:37,329
have what is called our spare

3135
01:45:37,330 --> 01:45:39,449
ratio right size, because

3136
01:45:39,450 --> 01:45:41,269
we can't just have a bunch

3137
01:45:41,270 --> 01:45:43,190
of busses sitting and waiting.

3138
01:45:44,210 --> 01:45:46,349
We have to have kind of an exact

3139
01:45:46,350 --> 01:45:48,109
right number based on our peak level

3140
01:45:48,110 --> 01:45:49,110
of sickness.

3141
01:45:50,340 --> 01:45:52,539
And I would add on the warranty

3142
01:45:52,540 --> 01:45:53,540
front,

3143
01:45:54,700 --> 01:45:56,599
these 60 something busses

3144
01:45:56,600 --> 01:45:58,558
are our first

3145
01:45:58,559 --> 01:46:00,619
electric articulated busses.

3146
01:46:00,620 --> 01:46:02,419
They are a new kind of bus in the

3147
01:46:02,420 --> 01:46:03,779
fleet. So some of what you are

3148
01:46:03,780 --> 01:46:05,638
seeing here too is our

3149
01:46:05,639 --> 01:46:06,639
mechanics,

3150
01:46:07,780 --> 01:46:09,718
our supply chain.

3151
01:46:09,719 --> 01:46:11,638
Ramping up for a new kind of bus we

3152
01:46:11,639 --> 01:46:13,259
were not operating or maintaining

3153
01:46:13,260 --> 01:46:14,299
before.

3154
01:46:14,300 --> 01:46:16,299
So some of this has been the

3155
01:46:16,300 --> 01:46:17,739
understanding of what it actually

3156
01:46:17,740 --> 01:46:19,599
cost to maintain them, which is a

3157
01:46:19,600 --> 01:46:21,079
different world than the diesel

3158
01:46:21,080 --> 01:46:23,019
busses we were operating before.

3159
01:46:23,020 --> 01:46:24,659
This is simply a new type of bus

3160
01:46:24,660 --> 01:46:26,359
that we haven't been as familiar

3161
01:46:26,360 --> 01:46:27,899
with and therefore it was much more

3162
01:46:27,900 --> 01:46:29,919
difficult to estimate

3163
01:46:29,920 --> 01:46:31,220
what they would cost to thing.

3164
01:46:34,030 --> 01:46:35,729
So now with the experience that we

3165
01:46:35,730 --> 01:46:37,629
have, I'm assuming we'll

3166
01:46:37,630 --> 01:46:39,429
have better projections for next two

3167
01:46:39,430 --> 01:46:40,889
years on, I think, right?

3168
01:46:42,420 --> 01:46:44,119
Yes, I would hope so.

3169
01:46:46,350 --> 01:46:47,749
Thank you.

3170
01:46:47,750 --> 01:46:49,388
Thank you, Alder.

3171
01:46:49,389 --> 01:46:51,929
Are there any other questions

3172
01:46:51,930 --> 01:46:53,350
for Metro?

3173
01:46:56,760 --> 01:46:58,679
Seeing none, then we'll go to the

3174
01:46:58,680 --> 01:47:00,839
general questions for Christine

3175
01:47:00,840 --> 01:47:01,840
Aldervidover.

3176
01:47:02,720 --> 01:47:04,779
Yeah, so thank you.

3177
01:47:04,780 --> 01:47:07,039
Christine, you'd mentioned the

3178
01:47:07,040 --> 01:47:09,199
amount of work it is to do these

3179
01:47:09,200 --> 01:47:10,579
mid-year budget updates, and then it

3180
01:47:10,580 --> 01:47:12,399
takes a couple of months.

3181
01:47:12,400 --> 01:47:14,879
So I guess my question is more about

3182
01:47:14,880 --> 01:47:16,079
efficiency.

3183
01:47:16,080 --> 01:47:18,319
Are there software systems

3184
01:47:18,320 --> 01:47:20,279
or other platforms that would

3185
01:47:20,280 --> 01:47:22,199
help allow for these updates

3186
01:47:22,200 --> 01:47:24,299
to happen on a more

3187
01:47:24,300 --> 01:47:26,219
ongoing basis so that you're not

3188
01:47:26,220 --> 01:47:28,319
basically every

3189
01:47:28,320 --> 01:47:30,039
three months having to do this big

3190
01:47:30,040 --> 01:47:31,459
job over and over and over again.

3191
01:47:33,730 --> 01:47:35,050
Thanks for that question.

3192
01:47:36,450 --> 01:47:38,849
Our team is definitely looking into,

3193
01:47:38,850 --> 01:47:40,729
is interested in creating

3194
01:47:40,730 --> 01:47:42,729
efficiencies and new ways of

3195
01:47:42,730 --> 01:47:43,730
working.

3196
01:47:46,639 --> 01:47:48,159
I would say we haven't specifically

3197
01:47:48,160 --> 01:47:50,359
looked at alternatives to

3198
01:47:50,360 --> 01:47:52,239
budget projections, but have looked

3199
01:47:52,240 --> 01:47:54,159
at technology to streamline

3200
01:47:54,160 --> 01:47:56,138
production of the budget book

3201
01:47:56,139 --> 01:47:58,219
with the digital budget book tool.

3202
01:47:58,220 --> 01:48:00,058
So that was really our big focus the

3203
01:48:00,059 --> 01:48:02,519
last year or two,

3204
01:48:02,520 --> 01:48:04,499
and I think it's on

3205
01:48:04,500 --> 01:48:06,638
my high priority and my work plan to

3206
01:48:06,639 --> 01:48:08,319
make this easier for all of us.

3207
01:48:10,210 --> 01:48:11,058
Excellent.

3208
01:48:11,059 --> 01:48:12,379
And then my other question was

3209
01:48:12,380 --> 01:48:14,218
specific.

3210
01:48:14,219 --> 01:48:16,379
So we know that

3211
01:48:16,380 --> 01:48:18,859
the federal Republican

3212
01:48:18,860 --> 01:48:20,939
big beautiful

3213
01:48:20,940 --> 01:48:22,759
budget, whatever the heck it's

3214
01:48:22,760 --> 01:48:24,599
called, is going to kick a heck

3215
01:48:24,600 --> 01:48:25,720
of a lot of people off Medicaid.

3216
01:48:27,000 --> 01:48:29,819
And that's going to impact

3217
01:48:29,820 --> 01:48:31,259
all of us in terms of higher health

3218
01:48:31,260 --> 01:48:33,699
care costs. It's going impact

3219
01:48:33,700 --> 01:48:35,138
probably we're going to have higher

3220
01:48:35,139 --> 01:48:36,959
ambulance runs, but it's also

3221
01:48:36,960 --> 01:48:38,259
likely going to affect the number of

3222
01:48:38,260 --> 01:48:39,739
people who are going to have

3223
01:48:39,740 --> 01:48:40,808
Medicaid coverage.

3224
01:48:40,809 --> 01:48:42,349
For ambulance runs.

3225
01:48:42,350 --> 01:48:44,609
So just wondering if we have built

3226
01:48:44,610 --> 01:48:46,869
in a projection going

3227
01:48:46,870 --> 01:48:49,229
forward for when that takes effect.

3228
01:48:49,230 --> 01:48:51,329
And that's really more about 27, but

3229
01:48:51,330 --> 01:48:53,109
it was one of the things that you

3230
01:48:53,110 --> 01:48:55,069
mentioned. It was the ambulance

3231
01:48:55,070 --> 01:48:56,449
charges.

3232
01:48:56,450 --> 01:48:57,609
So, just wondering if that's being

3233
01:48:57,610 --> 01:48:59,129
taken into consideration for 27.

3234
01:49:00,700 --> 01:49:02,558
So, Alder Vinterberg, we

3235
01:49:02,559 --> 01:49:04,679
really don't know what that impact

3236
01:49:04,680 --> 01:49:06,799
will be on ambulance and things like

3237
01:49:06,800 --> 01:49:07,599
that.

3238
01:49:07,600 --> 01:49:09,558
The ambulance revenues that

3239
01:49:09,559 --> 01:49:11,459
we're referring to is a new

3240
01:49:11,460 --> 01:49:13,279
Medicaid waiver program that

3241
01:49:13,280 --> 01:49:14,959
the state put into effect.

3242
01:49:16,280 --> 01:49:17,679
It's called the General Emergency

3243
01:49:17,680 --> 01:49:20,679
Medical Transport Program,

3244
01:49:20,680 --> 01:49:23,579
and that means that we get more

3245
01:49:23,580 --> 01:49:25,499
Medicaid reimbursement on

3246
01:49:25,500 --> 01:49:27,759
those runs for Medicaid eligible

3247
01:49:27,760 --> 01:49:29,138
individuals.

3248
01:49:29,139 --> 01:49:31,239
And that has resulted in

3249
01:49:31,240 --> 01:49:33,899
back payments from both

3250
01:49:33,900 --> 01:49:36,019
2023 and

3251
01:49:36,020 --> 01:49:37,979
2024, I believe that have

3252
01:49:37,980 --> 01:49:39,439
increased ambulance revenues.

3253
01:49:39,440 --> 01:49:41,719
And we expect going forward that

3254
01:49:41,720 --> 01:49:43,619
those ambulance revenues will

3255
01:49:43,620 --> 01:49:45,719
obviously remain elevated

3256
01:49:45,720 --> 01:49:48,359
due to that waiver program.

3257
01:49:48,360 --> 01:49:50,058
And then we'll continue to monitor

3258
01:49:50,059 --> 01:49:52,058
actual runs

3259
01:49:52,059 --> 01:49:53,939
and things like that

3260
01:49:53,940 --> 01:49:56,019
and impact on both

3261
01:49:56,020 --> 01:49:57,919
revenues as well as

3262
01:49:57,920 --> 01:50:00,509
our the waiver program

3263
01:50:00,510 --> 01:50:02,449
and things like that,

3264
01:50:02,450 --> 01:50:04,649
but definitely this enhanced

3265
01:50:04,650 --> 01:50:07,169
Medicaid waiver payment

3266
01:50:07,170 --> 01:50:08,929
has resulted in additional revenues

3267
01:50:08,930 --> 01:50:10,909
and will continue to result in

3268
01:50:10,910 --> 01:50:12,709
additional revenues coming in

3269
01:50:12,710 --> 01:50:14,749
through the ambulance fee.

3270
01:50:22,889 --> 01:50:23,709
Thank you, Alder.

3271
01:50:23,710 --> 01:50:26,009
Are there other questions on

3272
01:50:26,010 --> 01:50:27,830
the budget presentation?

3273
01:50:29,090 --> 01:50:30,090
Alder Revere.

3274
01:50:31,920 --> 01:50:34,039
Thank you, Mayor, and thank

3275
01:50:34,040 --> 01:50:36,179
you, Christine, for your excellent

3276
01:50:36,180 --> 01:50:37,479
presentation.

3277
01:50:37,480 --> 01:50:39,419
Helped answer several of

3278
01:50:39,420 --> 01:50:40,839
the questions I had just reading the

3279
01:50:40,840 --> 01:50:42,759
resolution over the weekend.

3280
01:50:42,760 --> 01:50:44,599
So I did have just

3281
01:50:44,600 --> 01:50:46,599
one

3282
01:50:46,600 --> 01:50:48,619
question and one request.

3283
01:50:48,620 --> 01:50:50,558
I'll start with the request.

3284
01:50:50,559 --> 01:50:52,379
Is it possible for you

3285
01:50:52,380 --> 01:50:55,979
and your colleagues to try to

3286
01:50:55,980 --> 01:50:58,419
make the agency projection

3287
01:50:58,420 --> 01:51:00,160
review Excel spreadsheet?

3288
01:51:01,700 --> 01:51:03,539
Convert to PDF file in a

3289
01:51:03,540 --> 01:51:05,138
more, so it's more readable, not

3290
01:51:05,139 --> 01:51:07,099
only to us, but the

3291
01:51:07,100 --> 01:51:08,659
community that might be accessing

3292
01:51:08,660 --> 01:51:10,339
this register file.

3293
01:51:10,340 --> 01:51:12,539
Several of the, the

3294
01:51:12,540 --> 01:51:14,199
end column, the commentary, you

3295
01:51:14,200 --> 01:51:15,399
probably haven't noticed yet,

3296
01:51:16,500 --> 01:51:18,459
the words are cut off and

3297
01:51:18,460 --> 01:51:20,299
you can't read like the ends

3298
01:51:20,300 --> 01:51:22,138
of some of your comments.

3299
01:51:22,139 --> 01:51:24,119
So I was hoping you could,

3300
01:51:24,120 --> 01:51:25,599
at your convenience, maybe make

3301
01:51:25,600 --> 01:51:27,659
another effort to convert the

3302
01:51:27,660 --> 01:51:29,179
Excel spreadsheet to a PDF.

3303
01:51:29,180 --> 01:51:31,229
We don't lose any of them.

3304
01:51:31,230 --> 01:51:32,429
Information.

3305
01:51:32,430 --> 01:51:33,808
This was brought to my attention at

3306
01:51:33,809 --> 01:51:34,929
the beginning of the meeting and

3307
01:51:34,930 --> 01:51:36,909
I've since re-uploaded that Excel

3308
01:51:36,910 --> 01:51:38,749
file. So you should be able to

3309
01:51:38,750 --> 01:51:39,929
open it.

3310
01:51:39,930 --> 01:51:40,769
Okay, great.

3311
01:51:40,770 --> 01:51:42,308
It had converted to a PDF

3312
01:51:42,309 --> 01:51:44,269
unintentionally that had the cutoff

3313
01:51:44,270 --> 01:51:46,529
issues, but I've re- uploaded it

3314
01:51:46,530 --> 01:51:48,349
as an original Excel file so

3315
01:51:48,350 --> 01:51:50,269
you can have full access to

3316
01:51:50,270 --> 01:51:52,669
the data and expand and

3317
01:51:52,670 --> 01:51:54,629
review cells. So I believe

3318
01:51:54,630 --> 01:51:56,029
the public facing legislature site

3319
01:51:56,030 --> 01:51:57,929
has had the correct attachment

3320
01:51:57,930 --> 01:51:59,869
for the last hour or

3321
01:51:59,870 --> 01:52:00,870
so.

3322
01:52:01,240 --> 01:52:02,759
Terrific. I just need to refresh

3323
01:52:02,760 --> 01:52:04,459
them. Thanks very much for that good

3324
01:52:04,460 --> 01:52:06,319
news And then speaking of your

3325
01:52:06,320 --> 01:52:08,279
helpful agency projection review

3326
01:52:08,280 --> 01:52:09,079
Excel spreadsheet.

3327
01:52:09,080 --> 01:52:11,099
I see Fire chief carbon

3328
01:52:11,100 --> 01:52:12,519
is with us. I want to acknowledge.

3329
01:52:12,520 --> 01:52:13,799
I don't have a question for you

3330
01:52:13,800 --> 01:52:15,239
Chris, but I do want to acknowledges

3331
01:52:15,240 --> 01:52:17,339
that how Great

3332
01:52:17,340 --> 01:52:19,399
it was to see finance

3333
01:52:19,400 --> 01:52:20,879
though. You're turning your camera

3334
01:52:20,880 --> 01:52:21,719
on anybody.

3335
01:52:21,720 --> 01:52:23,579
Let me just say congrats to you and

3336
01:52:23,580 --> 01:52:25,179
your team it was so great to see

3337
01:52:25,180 --> 01:52:27,099
Finance staff confirming full

3338
01:52:27,100 --> 01:52:29,099
staffing for your

3339
01:52:29,100 --> 01:52:30,939
agency and And,

3340
01:52:30,940 --> 01:52:32,888
uh... The best over

3341
01:52:32,889 --> 01:52:34,690
time projection I've seen in years.

3342
01:52:35,830 --> 01:52:36,749
I don't know if you, since you did

3343
01:52:36,750 --> 01:52:38,089
turn on your camera, if you wanna

3344
01:52:38,090 --> 01:52:40,089
say anything about that and how you

3345
01:52:40,090 --> 01:52:41,090
achieve that.

3346
01:52:42,400 --> 01:52:44,659
Um, no, I won't go into

3347
01:52:44,660 --> 01:52:46,779
a lengthy reply, but I'll just

3348
01:52:46,780 --> 01:52:48,659
say thank you for the support

3349
01:52:48,660 --> 01:52:50,759
and allowing the recruit class sizes

3350
01:52:50,760 --> 01:52:51,599
to continue.

3351
01:52:51,600 --> 01:52:53,079
And that's really helped us over the

3352
01:52:53,080 --> 01:52:54,439
last three to four recruit classes

3353
01:52:54,440 --> 01:52:56,279
in order to catch up,

3354
01:52:56,280 --> 01:52:58,179
maintain that staffing and allow the

3355
01:52:58,180 --> 01:52:59,739
creative staffing program to kick in

3356
01:52:59,740 --> 01:53:00,619
and be more effective.

3357
01:53:00,620 --> 01:53:02,299
So we really appreciate the support.

3358
01:53:03,550 --> 01:53:05,069
Thank you, thanks very much again,

3359
01:53:05,070 --> 01:53:06,249
Chief.

3360
01:53:06,250 --> 01:53:08,049
And then lastly, my question for

3361
01:53:08,050 --> 01:53:10,409
you, Christine, is I

3362
01:53:10,410 --> 01:53:12,829
was just curious in

3363
01:53:12,830 --> 01:53:14,529
response to one of my questions Dave

3364
01:53:14,530 --> 01:53:16,529
mentioned earlier, reminded us that

3365
01:53:16,530 --> 01:53:18,388
agency operating budget

3366
01:53:18,389 --> 01:53:20,209
agency requests were only recently

3367
01:53:20,210 --> 01:53:21,589
submitted. I know they were due on

3368
01:53:21,590 --> 01:53:23,289
the 17th of this month.

3369
01:53:23,290 --> 01:53:25,269
I was wondering if you could give us

3370
01:53:25,270 --> 01:53:27,369
an update as to what your best

3371
01:53:27,370 --> 01:53:28,888
guess estimate is to when those

3372
01:53:28,889 --> 01:53:30,909
agency budget requests will be.

3373
01:53:30,910 --> 01:53:33,029
Available to be viewed by

3374
01:53:33,030 --> 01:53:34,888
us policy makers in the community

3375
01:53:34,889 --> 01:53:35,889
online.

3376
01:53:36,620 --> 01:53:39,279
We're aiming for next week.

3377
01:53:39,280 --> 01:53:41,319
So if you go to our budget

3378
01:53:41,320 --> 01:53:43,219
web page, we'll note we'll

3379
01:53:43,220 --> 01:53:44,459
have two deadlines under budget

3380
01:53:44,460 --> 01:53:45,679
request. We have the date that it

3381
01:53:45,680 --> 01:53:47,399
was due from the agencies and our

3382
01:53:47,400 --> 01:53:49,159
anticipate anticipated date of

3383
01:53:49,160 --> 01:53:51,339
publication, and we currently have

3384
01:53:51,340 --> 01:53:53,020
eight three listed.

3385
01:53:54,540 --> 01:53:56,369
We're building the

3386
01:53:56,370 --> 01:53:57,929
request in the digital budget book

3387
01:53:57,930 --> 01:54:00,049
for the first time to

3388
01:54:00,050 --> 01:54:01,808
try and use some of the benefits of

3389
01:54:01,809 --> 01:54:03,729
the new platform that we have

3390
01:54:03,730 --> 01:54:05,308
purchased for the operating budget.

3391
01:54:05,309 --> 01:54:06,888
So we're still working through some

3392
01:54:06,889 --> 01:54:08,388
of those logistics and if that date

3393
01:54:08,389 --> 01:54:10,729
changes, we'll update our website

3394
01:54:10,730 --> 01:54:12,470
but definitely sometime next week.

3395
01:54:13,740 --> 01:54:15,340
Great, thank you so much, I

3396
01:54:15,341 --> 01:54:17,159
appreciate that.

3397
01:54:17,160 --> 01:54:18,319
Thanks again for all the helpful

3398
01:54:18,320 --> 01:54:19,899
information today.

3399
01:54:19,900 --> 01:54:20,929
Thank you, Mayor.

3400
01:54:20,930 --> 01:54:22,369
Thank you, Alder.

3401
01:54:22,370 --> 01:54:24,649
Are there other questions for

3402
01:54:24,650 --> 01:54:25,869
Christine or finance staff?

3403
01:54:29,150 --> 01:54:30,569
Right.

3404
01:54:30,570 --> 01:54:32,509
Seeing none, then

3405
01:54:32,510 --> 01:54:34,429
item 18 has been moved

3406
01:54:34,430 --> 01:54:35,529
and seconded. Is there any

3407
01:54:35,530 --> 01:54:36,530
discussion?

3408
01:54:39,059 --> 01:54:40,879
Seeing no discussion, is there

3409
01:54:40,880 --> 01:54:42,539
any objection to recording unanimous

3410
01:54:42,540 --> 01:54:44,019
vote in favor of item 18?

3411
01:54:46,170 --> 01:54:47,689
Seeing no objection, record a

3412
01:54:47,690 --> 01:54:49,729
unanimous vote in favor of item 18,

3413
01:54:49,730 --> 01:54:51,849
and then would

3414
01:54:51,850 --> 01:54:53,749
request a motion to

3415
01:54:53,750 --> 01:54:56,269
take item one off the table.

3416
01:54:56,270 --> 01:54:58,149
Motion to take item

3417
01:54:58,150 --> 01:55:00,349
one public comment off the tables.

3418
01:55:00,350 --> 01:55:01,269
Second.

3419
01:55:01,270 --> 01:55:02,609
Move and second to take it off the

3420
01:55:02,610 --> 01:55:04,789
the table, is there any objection?

3421
01:55:04,790 --> 01:55:06,609
Seeing none, item one is back before

3422
01:55:06,610 --> 01:55:07,610
us.

3423
01:55:10,150 --> 01:55:12,388
I believe we

3424
01:55:12,389 --> 01:55:14,289
only have one person

3425
01:55:14,290 --> 01:55:15,290
on the phone.

3426
01:55:16,330 --> 01:55:19,709
In the zoom and

3427
01:55:19,710 --> 01:55:21,869
so let

3428
01:55:21,870 --> 01:55:23,808
me just jump to the

3429
01:55:23,809 --> 01:55:25,808
list. And

3430
01:55:25,809 --> 01:55:28,309
can we have.

3431
01:55:30,370 --> 01:55:32,189
Our tech staff allow

3432
01:55:32,190 --> 01:55:33,949
that person to speak and see if they

3433
01:55:33,950 --> 01:55:35,269
are one of the registrants.

3434
01:55:37,710 --> 01:55:39,269
They should have permission to

3435
01:55:39,270 --> 01:55:40,888
speak. I didn't see that number on

3436
01:55:40,889 --> 01:55:41,889
the list,

3437
01:55:43,309 --> 01:55:45,209
but they are being asked

3438
01:55:45,210 --> 01:55:46,229
to unmute as well.

3439
01:55:47,330 --> 01:55:48,789
So for the person who's listening on

3440
01:55:48,790 --> 01:55:50,249
the phone, it's star six on your

3441
01:55:50,250 --> 01:55:51,249
phone, if you'd like to unmute

3442
01:55:51,250 --> 01:55:52,250
yourself.

3443
01:55:52,870 --> 01:55:54,709
And if you were registered to speak

3444
01:55:54,710 --> 01:55:55,710
to speak,

3445
01:55:56,730 --> 01:55:58,169
if not, perhaps you could just

3446
01:55:58,170 --> 01:55:59,349
confirm that you're not interested

3447
01:55:59,350 --> 01:56:00,350
in speaking.

3448
01:56:04,180 --> 01:56:05,180
Well, wait a minute.

3449
01:56:11,910 --> 01:56:14,329
All right, it seems like not.

3450
01:56:15,970 --> 01:56:18,069
So we have no other registrants

3451
01:56:18,070 --> 01:56:19,429
in attendance.

3452
01:56:19,430 --> 01:56:21,609
I would just direct your collective

3453
01:56:21,610 --> 01:56:23,969
attention to the

3454
01:56:23,970 --> 01:56:25,949
email comment that we

3455
01:56:25,950 --> 01:56:28,169
got on item one

3456
01:56:28,170 --> 01:56:31,049
and ask that you read that.

3457
01:56:31,050 --> 01:56:33,589
Staff will send an updated report.

3458
01:56:33,590 --> 01:56:35,049
I believe that comments were still

3459
01:56:35,050 --> 01:56:37,058
coming in through the meeting.

3460
01:56:37,059 --> 01:56:38,959
And so just ask that members

3461
01:56:38,960 --> 01:56:41,279
of the body go ahead and read that

3462
01:56:41,280 --> 01:56:42,699
report from staff when we receive

3463
01:56:42,700 --> 01:56:43,700
it.

3464
01:56:44,600 --> 01:56:46,479
That will bring us to the end

3465
01:56:46,480 --> 01:56:47,819
of our agenda.

3466
01:56:47,820 --> 01:56:49,339
So I would entertain a motion to

3467
01:56:49,340 --> 01:56:51,259
adjourn. Motion to adjourned.

3468
01:56:52,900 --> 01:56:54,599
Moved and seconded to adjourne.

3469
01:56:54,600 --> 01:56:55,959
Is there any objection to recording

3470
01:56:55,960 --> 01:56:57,100
unanimous vote in favor?

3471
01:56:58,360 --> 01:56:59,799
Seeing none, we stand adjourned,

3472
01:56:59,800 --> 01:57:00,800
have a good evening.