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OK, WE ARE NOW STREAMING LIVE.I WILL BE THERE SHORTLY, BUT KICK THIS OFF.
[1. Call to Order NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this work session, the City Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).]
IT IS DECEMBER 9TH, 2021, OF OUR BUDGET RETREAT CALLING TO ORDER STACY ROLL CALL, PLEASE.WHO DO WE HAVE IN THE ROOM, I'M JUST SEEING THE PRESENTATION SLIDES FOR THE PLEDGE OF ALLEGIANCE AND SUCH.
WHO'S IN THE ROOM? MAYOR, WE HAVE PRETTY MUCH EVERYBODY.
VICE MAYOR DAGGETT WILL BE ATTENDING VIRTUALLY TODAY, BUT ALL OTHER COUNCIL ARE HERE AND WE HAVE THE BUDGET TEAM IN THE ROOM AS WELL AS OUR FACILITATOR.
WELL, WITH THAT COUNCIL MEMBER SALAS, WOULD YOU PLEASE LEAD US IN THE PLEDGE OF ALLEGIANCE? [INAUDIBLE] ALLEGIANCE] ALL RIGHT.
COUNCIL MEMBER ASLAN MISSION STATEMENT, PLEASE.
YES, MAYOR THE OF THE CITY OF FLAGSTAFF IS TO PROTECT AND ENHANCE THE QUALITY OF LIFE FOR ALL.
ALL RIGHT, AND COUNCIL MEMBER SWEET, WOULD YOU MIND READING OUR LAND ACKNOWLEDGMENT, PLEASE? [INAUDIBLE] THE FLAGSTAFF CITY COUNCIL HUMBLY ACKNOWLEDGES THE ANCESTRAL HOMELAND OF THIS AREA'S INDIGENOUS NATIONS AND ORIGINAL STEWARDS.
THESE LANDS STILL INHABITED BY NATIVE DESCENDANTS WERE MOUNTAIN SACRED TO INDIGENOUS PEOPLES.
WE HONOR THEM, THEIR LEGACIES, THEIR TRADITIONS AND THEIR CONTINUED CONTRIBUTIONS.
WE CELEBRATE THEIR PAST, PRESENT AND FUTURE GENERATIONS WHO WILL FOREVER KNOW THIS PLACE AT HOME.
THANK YOU, COUNCIL MEMBER SWEET.
WITH THAT, WE'RE DOWN TO AGENDA ITEM NUMBER FOUR CITY COUNCIL BUDGET RETREAT.
[4. City Council Budget Retreat City staff to provide an overview of the FY 2022-2023 budget process and other information impacting the City financial outlook. Welcome and Objectives Priority Based Budget Budget Refresh Revenue Updates Maintaining Fiscal Health Budget Expectations and Impacts Federal Funding Council Expectations]
SO, YEAH, PASSING THE TORCH HERE TO OUR FACILITATOR AND OUR STAFF.OUR UNDERSTANDING IS THAT YOU'LL BE HERE IN PERSON A LITTLE BIT LATER.
I WILL BE THERE IN ABOUT FIVE TO 10 MINUTES.
A LITTLE TROUBLE GETTING THE KIDS OUT THE DOOR AND SWITCHING CARS WITH THOSE PICKING UP THE KIDS FROM SCHOOL LATER TODAY.
SO JUST RUNNING A LITTLE LATE.
AND THANK YOU FOR PASSING THE GAVEL.
GREG CLIFTON, YOUR CITY MANAGER AND WELCOME TO THE DECEMBER 9TH BUDGET RETREAT AT THIS WONDERFUL PUBLIC WORKS FACILITY.
IN JUST A SECOND, I'M GOING TO INTRODUCE OUR FACILITATOR AND I'M VERY EXCITED TO DO THAT .
WE ALL KNOW THE RULES OR THE LACK OF RULES IN THIS, BUT I'LL GO AHEAD AND RESTATE THEM.
AND BECAUSE OF THAT, YOU KNOW, WE DON'T HAVE A FORMAL PODIUM.
AND I'LL GO OVER THE MICROPHONE SITUATION IN A SECOND, BUT IT'S A LITTLE BIT MORE OF AN EXCHANGE, IF YOU WILL, TODAY.
SO QUESTIONS ON THE FLY ARE WELCOME BECAUSE WE HAVE MANY ATTENDING VIRTUALLY AS WELL AS THOSE WHO ARE IN THE ROOM.
WE WILL ASK FOR HAND RAISES WHEN YOU WANT TO SPEAK AND DO IT THAT WAY.
THAT'S ABOUT AS FORMAL AS WE'RE GOING TO GET DURING THIS.
THERE ARE PRESENTATIONS TODAY LIKE THERE ARE IN ALL OF OUR BUDGET RETREATS AND BUT DURING THE PRESENTATIONS AND ONE OF THOSE WILL BE COMING YOUR WAY FROM DENVER, COLORADO.
IF YOU HAVE QUESTIONS, RAISE YOUR HAND WE'LL JUST GO AHEAD AND INTERRUPT THAT WILL.
AND THAT WAY WE CAN ENTERTAIN YOUR QUESTIONS.
WITH RESPECT TO THE MICROPHONES, YOU KNOW, THIS IS A GREAT FACILITY WE'RE IN THE PROCESS OF UPGRADING THE AUDIO VIDEO.
RIGHT NOW IT WORKS AND WE'VE HAD IT WORK FOR US BEFORE.
BUT JUST AS A REMINDER, WE HAVE TWO VERY GOOD MICROPHONES UP HERE ON THE CENTER TABLE AND ANYBODY AROUND THIS TABLE HERE WILL BE AUDIBLE.
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AND BUT THOSE OF YOU IN THE BACK OF THE ROOM, NOT SO.SO IF YOU HAVE A QUESTION OR IF YOU ARE PRESENTING, PLEASE FIND YOUR WAY UP TO THIS FRONT TABLE HERE AND WE APOLOGIZE FOR THE INCONVENIENCE.
BUT THAT WAY, EVERYBODY CAN HEAR YOUR QUESTIONS OR COMMENTS.
SO A LITTLE BIT CLUNKY, BUT IT WORKED PRETTY WELL LAST TIME, AND WE'RE JUST GOING TO ASK THAT YOU INDULGE US AGAIN IN GETTING THROUGH THIS.
WE HAVE A VERY FULL DAY, SO WE'RE GOING TO LAUNCH RIGHT INTO BUSINESS.
I WOULD LIKE TO INTRODUCE OUR FACILITATOR.
MANY OF YOU KNOW HER, BUT I DON'T KNOW THAT SHE HAS FACILITATED THESE RETREATS BEFORE.
SHE DOES WORK WITH THE JULIE LANCASTER LEADERSHIP TEAM AND WE'RE REALLY EXCITED TO HAVE HER.
HER NAME IS KATIE WITTEKIND, BUT WE ALL PRONOUNCE THAT KATIE WITTEKIND.
BUT I LIKE THE WAY IT SOUNDS IN GERMAN.
KATIE RECEIVED HER MASTER'S OF APPLIED POSITIVE PSYCHOLOGY FROM THE UNIVERSITY OF PENNSYLVANIA.
SHE'S A CERTIFIED COACH BY DR.
KA`TIE IS A NONPROFIT PRESIDENT, A LIFE COACH, A UNIVERSITY LECTURER, A CONSULTANT, A FACILITATOR, A PUBLIC SPEAKER, A WRITER AND A CERTIFIED WELLNESS PROFESSIONAL.
KATIE COMBINES THE SCIENCE OF POSITIVE PSYCHOLOGY, DESIGN, THINKING AND HABIT RESEARCH FOR A TRULY INNOVATIVE APPROACH TO ORGANIZATIONAL AND INDIVIDUAL CHANGE.
KATIE FACILITATES TRAINING ON CREATING THE DESIRED COMPANY CULTURE, LEADERSHIP, COMMUNICATION, TEAM BUILDING AND PSYCHOLOGICAL SAFETY, AND SHE EMPOWERS YOU WITH HOW TO CREATE DESIRED CHANGE WITHIN YOUR ORGANIZATIONS.
OF ALL THOSE WONDERFUL SKILL SETS TODAY, WE'RE ASKING HER TO HELP FACILITATE THIS BUDGET RETREAT.
IN THAT CAPACITY, WE'RE ASKING HER TO KEEP US ON TIME AND SOMEWHAT ON TASK SO WE CAN GET MOVING ALONG BECAUSE WE HAVE A LOT TO COVER TODAY.
SO WITH THAT, I'M GOING TO TURN IT OVER TO KATIE.
WHY DON'T WE GIVE HER A GOOD, GOOD, WARM APPLAUSE THIS MORNING? THANKS.
SO I JUST WANT TO WELCOME YOU AND SAY THAT TODAY WE HAVE SOME THREE MAIN OBJECTIVES.
ONE OF THOSE IS GOING TO GO OVER PRIORITY BASED BUDGETING KIND OF ONE ON ONE, ESPECIALLY FOR ANYONE IN THE ROOM THAT IS UNFAMILIAR.
THEN WE'RE GOING TO GO OVER SOME STRATEGIC OBJECTIVES AND THEN WHAT TO EXPECT IN THE BUDGETING PROCESS.
SO WE'RE GOING TO DEFINITELY HIT THOSE THREE OBJECTIVES TODAY.
SOME GROUND RULES ARE, AS I MENTIONED, MY ROLE IS TO KEEP US ON TASK AND ON TOPIC AND ON TIME.
THAT BEING SAID, I MIGHT GENTLY SAY, OK, WE'RE AT TIME HERE.
DO WE WANT TO BORROW TIME FROM ANOTHER PART OF THE AGENDA OR KEEP DISCUSSING THIS? SO JUST LOOK OUT FOR THOSE INTERRUPTIONS THERE IN A FRIENDLY, KIND WAY.
AND GIVEN THAT IT'S IMPORTANT TO REMEMBER THAT TODAY'S MEETING IS ABOUT A HIGH LEVEL VIEW OF THE BUDGETING PROCESS, AND WE'RE GOING TO GET MORE INTO THE DETAILS IN THAT FEBRUARY MEETING.
SO IF YOU'RE SOMEONE WHO TENDS TO GET INTO DETAILS, YOU KNOW WHO YOU ARE IN THE ROOM, THEN GO AHEAD AND THINK ABOUT THOSE DETAILED QUESTIONS YOU MIGHT HAVE.
WRITE THEM DOWN AND SAVE THEM SO THAT WE CAN ADDRESS THOSE IN OUR FEBRUARY MEETING AND KEEP IT AT A HIGH LEVEL FOR TODAY.
AND THEN ALSO, AS HE MENTIONED, WE'RE GOING TO RAISE OUR HANDS WHEN WE SPEAK, EVEN IF WE'RE HERE IN THE ROOM.
THAT'S SO THAT THE PEOPLE ONLINE CAN SEE WHO'S RAISING THEIR HAND WHO'S ABOUT TO SPEAK.
AND THEN REMEMBER THAT AS AS OUR CITY MANAGER SAID THAT WE HAVE MORE OF AN INFORMAL SITUATION HERE.
SO IF YOU HAVE QUESTIONS ON THE FLY, IT IS OK TO ASK THOSE QUESTIONS DURING PRESENTATIONS.
THAT WAY, WE CAN ADDRESS THOSE IN THE MOMENTS AS WELL.
AND WE WANT TO ACKNOWLEDGE THAT THE AUDIO CAN BE DIFFICULT, AND ME, AS THE FACILITATOR, HAVING A MASK ON CAN BE A CHALLENGE.
SO DO JUST GIVE ME A SIGN IF YOU'RE HAVING A HARD TIME HEARING AND THAT WILL TELL ME TO SPEAK A LITTLE BIT LOUDER? CAN WE GET A THUMBS UP FROM ANYONE ONLINE IF THEY'RE ABLE TO HEAR ME LOUD AND CLEAR? THAT WOULD BE GREAT IF WE CAN GET A THUMBS UP.
HOW ABOUT IN THE BACK OF THE ROOM OVER TEN GREAT.
SO THAT BEING SAID, I'M REALLY GRATEFUL TO BE HERE THANK YOU FOR INVITING ME HERE AND TO GET THINGS STARTED.
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LET'S TAKE A MOMENT AND I'M INVITING EVERYONE IN THE ROOM AND EVERYONE ONLINE TO THINK ABOUT WHAT IT IS YOU APPRECIATE MOST ABOUT OUR COMMUNITY, WHAT IT IS THAT YOU APPRECIATE MOST ABOUT OUR COMMUNITY.SO FOR THOSE OF YOU ONLINE, GO AHEAD AND RIGHT IN THE CHAT BOX THINGS THAT YOU APPRECIATE MOST ABOUT OUR COMMUNITY.
AND FOR THOSE OF YOU HERE IN THE ROOM.
THINK ABOUT IT WHEN YOU'RE READY.
I WOULD LOVE TO SEE SOME HANDS RAISED TO SHARE SOME THINGS THAT YOU APPRECIATE ABOUT OUR COMMUNITY TO SET THE TONE FOR MOVING INTO A PROCESS OF BUDGETING FOR OUR [INAUDIBLE].
AND I REALLY APPRECIATE HOW MUCH WE TAKE CARE OF ONE ANOTHER.
APPRECIATE THAT WE TAKE CARE OF ONE ANOTHER.
I LIVE AT THE BASE OF MOUNT ELDEN, WHERE ALL THE FLOODING HAPPENED.
I REALLY APPRECIATE THAT CARING.
[INAUDIBLE] COUPLE THINGS, DIVERSITY, ENGAGEMENT AND PASSION.
DIVERSITY, ENGAGEMENT AND PASSION.
I LOVE THOSE THINGS, IF ONLY EVERY TEAM ORGANIZATION COULD HAVE THOSE 3 THINGS GOING FOR IT I COULDN'T AGREE MORE.
HOW ABOUT ONLINE? DO WE HAVE ANY COMMENTS ONLINE? THAT WOULD BE.
I'M HAPPY TO READ SOME OF THOSE OUT, IF YOU'D LIKE ME.
YEAH, JUST YEAH, JUST GRAB A FEW.
SO WE HEARD FROM VICE MAYOR DAGGETT THAT THE RESIDENTS ARE INVESTED IN OUR COMMUNITY AND WE'VE GOT COMMUNITY PASSION.
THOSE ARE FANTASTIC, THE PEOPLE VIBRANCY.
OUR COMMUNITY'S HIGHLY INVOLVED AND ENGAGED.
AN INVOLVED AND ENGAGED COMMUNITY.
WHICH MAKES US ALL BETTER BECAUSE THE DIVERSITY OF PERSPECTIVE MAKES US ALL STRONGER.
OH, THANKS FOR YOUR PATIENCE FOR ME GETTING HERE.
I'D SAY OUR INTERCONNECTEDNESS [INAUDIBLE] BECOMING A SMALL CITY YET AT THE SAME TIME WHEN YOU LOOK, SOMEONE IN THE EYES WALKING DOWN THE STREET, THEY NOD THEIR HEAD.
THE FACT THAT WE STILL MAINTAIN THAT SMALL TOWN COMMUNITY FEELING AT THE SAME TIME AS STILL GROWING STILL AND HONESTLY, HAVING THE AMENITIES OF THE CITY OF BEING ABLE TO GO TO A SHOW AT THE ORPHEUM OR BE ABLE TO SHOP HERE LOCALLY WITH OUR LOCALS.
SO I WOULD SAY THE INTERCONNECTEDNESS OF THE SMALL TOWN FEEL, [INAUDIBLE] THE AMENITIES AND THE REALITY THAT WE ARE SUPPOSED TO BE.
THE SMALL TOWN FILLED WITH THE AMENITIES IS A FANTASTIC THING.
AND IF YOU LIVE HERE LONG ENOUGH, YOU CAN'T GO ANYWHERE WITHOUT SEEING SOMEONE.
SO IF YOU'RE ON THE ROAD AND YOU'RE ABOUT TO PULL IN FRONT OF SOMEONE, YOU HAVE TO THINK TWICE, YOU PROBABLY KNOW THEM.
I LOVE TO SET THE TONE FOR A MEETING IN THAT WAY BECAUSE WE'RE HERE FOR A FOUNDATIONAL REASON AND IT'S FOR OUR COMMUNITY THAT WE LOVE AND HAVE PASSION FOR.
I'VE HEARD PASSION SIX TIMES, SO MAYBE BRING THAT PASSION TODAY AS WE APPROACH THIS BUDGETING PROCESS.
AND SOMETIMES BUDGETING PROCESSES CAN CREATE A FEELING OF LACKING LIKE, OH, I HAVE TO GIVE UP THIS TO DO THIS, I CAN'T DO THIS OR I'M LIMITED IN THIS.
BUT IF WE START WITH THIS PERSPECTIVE OF PASSION, WE CAN REMEMBER THAT THERE'S SO MUCH WE CAN DO WITH THE POWER OF THE DOLLARS THAT WE'RE GOING TO BUDGET AND SO MUCH WE WILL DO, AND THAT IT'S NOT ABOUT LACKING AT ALL, BUT THE ABUNDANCE OF PASSION AND INTERCONNECTEDNESS AND COMMUNITY THAT WE'RE HERE FOR.
ANY QUESTIONS BEFORE WE GET STARTED? ANY HANDS ONLINE.
WELL, WITHOUT FURTHER ADO, WE WILL GET STARTED WITH OUR FIRST PART OF THE AGENDA, WHICH IS PRIORITY BASED BUDGET.
WE HAVE SHANE, CHRIS RHODE AND CHRIS FABIAN.
THAT ARE GOING TO BEGIN THAT PRESENTATION.
HEY, SHANE OR GREG OR KATIE, IS MY AUDIO COMING THROUGH? OK? CAN YOU HEAR ME? YES, IT IS, CHRIS.
I AM SO PLEASED TO BE HERE VIRTUALLY.
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I HEAR THERE'S THE POTENTIAL FOR SNOW IN FLAGSTAFF AND USUALLY WE HAVE SOLIDARITY ON THAT FRONT, BUT NOT TODAY.AND I LONG FOR THE TIME THAT I CAN RETURN TO FLAGSTAFF AND BE WITH YOU ALL.
BUT THANK YOU FOR HAVING ME TO JOIN YOUR RETREAT VIRTUALLY.
I RUN AN ORGANIZATION CALLED RESOURCE EXPLORATION.
WE EXPLORE RESOURCES OF ALL KINDS AND CERTAINLY THE BUDGET IS A MAJOR PART OF THE WORK THAT WE DO.
AND WE'VE BEEN FORTUNATE ENOUGH TO BE WORKING TOGETHER WITH THE CITY OF FLAGSTAFF FOR A FEW YEARS NOW.
AS PART OF YOUR BUDGET TRANSFORMATION JOURNEY TO EVOLVE THE WAY THAT YOU LOOK AT RESOURCES THROUGH THE PROCESS THAT WE CALL PRIORITY BASED BUDGETING.
KATIE MENTIONED TODAY IN HER OPENING REMARKS ABOUT SOMETIMES THE BUDGET CREATING THIS FEELING OF LACKING OR SCARCITY, AND THAT'S PRIMARILY THE REASON THAT WE EXIST AND THAT PRIORITY BASED BUDGETING CAME ABOUT IS TRYING TO MOVE FROM THAT FEELING OF SCARCITY OR LACKING TOWARDS ABUNDANCE, TOWARDS REALIZING THAT WE DO HAVE AN ABUNDANCE OF RESOURCES.
AND PERHAPS IT'S A MATTER OF ENSURING THAT WE HAVE THE ALIGNMENT OF THOSE RESOURCES WITH WHAT'S MOST IMPORTANT FOR YOU, FOR YOUR COMMUNITY, YOUR PASSIONATE COMMUNITY THAT WE JUST HEARD ABOUT.
AND THAT'S WHAT WE'RE GOING TO GET INTO AS WE DISCUSS WHAT PRIORITY BASED BUDGETING IS ALL ABOUT.
FOR A VERY QUICK INTRODUCTION ON ME.
AND THEN I'LL BRING IT TO SHANE.
I GOT STARTED IN BUDGET AND GRAPPLING WITH THIS EXACT SAME FEELING AS MY ELECTED OFFICIALS IN JEFFERSON COUNTY, COLORADO, HAD THESE HIGH HOPES FOR WHAT THEY WANTED TO ACCOMPLISH IN OUR COMMUNITY.
AND EVERY TIME IT CAME TO THE BUDGET THERE'S THIS FEELING OF MAYBE WE CAN'T DO WHAT WE REALLY WANTED TO DO.
AND SO WE HAD TO INVENT IT A DIFFERENT PROCESS THAT WAS BACK IN 2008.
WE BUILT ON THE SHOULDERS OF OTHERS WHO HAD CAME BEFORE US, WHO HAD TRIED TO TACKLE BUDGET TRANSFORMATION AND SEEK ALIGNMENT OF OUR SCARCE RESOURCES WITH OUTCOMES.
AND SINCE WE FIRST IMPLEMENTED IN JEFFERSON COUNTY, THERE HAVE BEEN NOW OVER THREE HUNDRED LOCAL GOVERNMENTS ACROSS THE UNITED STATES AND INTO CANADA WHO HAVE IMPLEMENTED PRIORITY BASED BUDGETING.
THREE HUNDRED SOUNDS LIKE A LOT IN SOME WAYS, BUT THERE IF YOU CONSIDER THAT THERE ARE 90,000 LOCAL GOVERNMENT ENTITIES IN THE UNITED STATES ALONE, YOU REALIZE THAT 300 REPRESENTS A PIONEERING AND INNOVATIVE GROUP OF LOCAL GOVERNMENTS.
AND I HOPE THAT THAT IS HOW YOU SEE YOURSELVES.
CERTAINLY, THAT'S HOW WE SEE YOU AS ONE OF THE LEADERS IN THIS BUDGET TRANSFORMATION.
SO MUCH SO THAT THE LEADING ASSOCIATIONS WHO REPRESENT CITY MANAGERS, THAT IS THE INTERNATIONAL CITY AND COUNTY MANAGEMENT ASSOCIATION, ICMA FINANCE AND BUDGET PROFESSIONALS FROM THE GOVERNMENT FINANCE OFFICERS ASSOCIATION GFOA AND THE NATIONAL LEAGUE OF CITIES.
WHERE I'VE MET SOME OF YOU OVER THE YEARS AT NLC RECOGNIZED PRIORITY BASED BUDGETING AS A LEADING BEST PRACTICE FOR HOW WE ARE GOING TO NEED TO LOOK AT RESOURCES TO MANAGE IT IN THE 21ST CENTURY.
SO AS I TURN IT OVER TO SHANE, I HOPE THAT AS WE START THIS PRESENTATION ON PRIORITY BASED BUDGETING, I WANT YOU TO FEEL THAT FOR A MOMENT THAT YOU ARE PART OF THE THE LEADING CHARGE OF LOCAL GOVERNMENT PROFESSIONALS WHO ARE PURSUING A DIFFERENT WAY TO MAKE THIS FEELING OF THE BUDGET LESS ABOUT LACKING AND MORE ABOUT THAT ABUNDANCE TO ACHIEVE THE PRIORITIES THAT WE SEE FOR THE FUTURE.
SO I WILL TURN IT OVER TO SHANE, WHO CAN GIVE US A LITTLE BIT OF BACKGROUND ON YOUR PBB JOURNEY AND HOW WE GOT HERE.
GOOD MORNING, MAYOR AND COUNCIL MEMBERS, PLEASED TO BE UP HERE WITH YOU, SITTING NEXT TO ME IS, CHRIS RHODE.
AND AS A MEMBER OF THE TEAM IN THE CITY MANAGER'S OFFICE, CHRIS HAS REALLY TAKEN THE LEAD ROLE WITH PRIORITY BASED BUDGETING.
AS WE, AS CHRIS RHODE AND I AND MR. FABIAN HERE GOT TOGETHER LAST WEEK TO DISCUSS THIS PRESENTATION, WE THOUGHT IT
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WOULD BE HELPFUL.JUST KIND OF TAKE A QUICK STEP BACK AND RECAP THE ORIGINS OF PBB FOR OUR ORGANIZATION.
SO IT'S MY PLEASURE TO BE HERE TO GO THROUGH THE NEXT TWO SLIDES WITH YOU TO PROVIDE THAT BACKDROP TO THIS DISCUSSION AND PRESENTATION THAT MR. FABIAN WILL HELP US WITH.
YOU KNOW, AS A LOCAL GOVERNMENT THAT PRIDES ITSELF ON PROVIDING PUBLIC SERVICE AT A HIGHER ELEVATION.
YOU KNOW, THE CITY OF FLAGSTAFF HAS LONG EMBRACED AND STRIVE FOR HIGHER PERFORMING GOVERNANCE.
IT'S VERY IMPORTANT TO OUR ORGANIZATION TEAM FLAGSTAFF'S MAIN VALUE TRYING TO DO THINGS BETTER EACH AND EVERY DAY IN PROVIDING SERVICE TO OUR COMMUNITY'S.
PRIORITY BASED BUDGETING WHERE SOMETIMES WE REFER TO IT AS PBB IS A RELATIVELY NEW TOOL IN OUR PERFORMANCE TOOL BELT AS IT IS MEANT TO HELP US ALONG THAT JOURNEY TO HIGHER PERFORMANCE AS A GOVERNMENT.
IT CAME ABOUT FOR OUR ORGANIZATION AS A RESULT OF STAFF'S EFFORT TO SATISFY THREE PRIMARY DIRECTIVES THAT WE HAD RECEIVED AS STAFF FROM THE COUNCIL IN OUR BUDGET DISCUSSIONS FOR THE FISCAL YEAR 18 AND FISCAL YEAR 19 BUDGETS.
AND THE FOCUS OF THESE DIRECTIVES REALLY WAS ALL ABOUT THE BUDGETING PROCESS ITSELF.
SO THE FIRST OBJECTIVE YOU'LL SEE UP HERE ON THE SCREEN IS THAT THE BUDGET PROCESS NEEDED TO BE SOMETHING THAT PROMOTED AND ENABLED THE CITY LEADERSHIP TO MAKE DATA DRIVEN DECISIONS.
THAT WAS EXTREMELY IMPORTANT TO THE COUNCIL AND IT'S STILL IMPORTANT TO OUR ORGANIZATION AS WE APPROACH THESE BUDGET DECISIONS.
THE SECOND DIRECTIVE WAS THAT WE NEEDED TO HAVE A PROCESS THAT PROVIDED GREATER PUBLIC TRANSPARENCY AND ENGAGEMENT, SO THE BUDGET PROCESS ITSELF NEEDED TO REACH OUT TO THE PUBLIC BETTER IN MORE TRANSPARENT WAYS AND HELP THE PUBLIC BE ENGAGED AND BETTER INFORMED ABOUT OUR BUDGET PROCESS.
THEN THE LAST DIRECTIVE WAS THAT THE OUTCOMES OF OUR BUDGET ITSELF NEEDED TO CLEARLY SHOW THE COMMUNITY A STRONG ALIGNMENT WITH THE VALUES AND PRIORITIES OF THE COMMUNITY ITSELF.
SO WHAT'S THAT ALIGNMENT LOOK LIKE WITH WHAT'S MOST IMPORTANT TO THE COMMUNITY? SO THOSE WERE THE THREE PRIMARY DIRECTIVES THAT WE HAD BEEN CHARGED WITH AS AS STAFF.
AND WE IN OUR EXPLORATION FOR WAYS TO IMPROVE OUR BUDGET PROCESS CAME UPON THIS TOOL THIS PRIORITY BASED BUDGETING TOOL PROVIDED BY CHRIS FABIAN'S COMPANY RESOURCE X.
WHEN WE CAME UPON THIS, WE RESEARCHED IT, WE HAD A SMALL GROUP OF STAFF GO OUT TO COLORADO.
WE VISITED WITH FORT COLLINS, COLORADO, WHICH IS, YOU KNOW, CHRIS REFERENCED PIONEERING EFFORT.
FORT COLLINS HAS BEEN KNOWN, RECEIVED NATIONAL RECOGNITION FOR THEIR BUDGETING PROCESS, AND IT'S VERY MUCH ALIGNED WITH THE PBB MODEL HERE.
AND SO THAT LED US TO CHRIS FABIAN AND RESOURCE X.
AS STAFF WE PRESENTED THIS TOOL TO COUNCIL FOR CONSIDERATION.
COUNCIL LIKED IT AND IN MAY OF 2019 APPROVED A CONTRACT WITH RESOURCE X TO BEGIN IMPLEMENTATION OF THE TOOL ITSELF.
A HUGE ENDEAVOR GOING FROM A TRADITIONAL LINE ITEM BUDGET PROCESSING TO BRINGING THIS TOOL ONLINE WAS A HEAVY LIFT BY STAFF AND BY THE COMMUNITY ITSELF.
WE ARE NOW IN OUR THIRD YEAR OF USE OF THIS TOOL.
AND EVERY YEAR WE GRADUATE TO MORE ADVANCED LEVELS OF THIS USE AND WE WILL HOPE TO DO THE SAME THIS YEAR AS WE OPEN THIS BUDGET PROCESS UP WITH COUNCIL.
AND CRITICAL TO THE SUCCESS OF PRIORITY BASED BUDGETING IS THAT ALIGNMENT BETWEEN THE COMMUNITY PRIORITIES AND VALUES AND THE BUDGET ITSELF.
TO ACCOMPLISH THIS, WE NEEDED THE COUNCIL TO ESTABLISH THOSE PRIORITIES.
AND SO COUNCIL ENDEAVORED TO DO JUST THAT AND UP ON THE LEFT SIDE OF THE SCREEN, YOU'LL SEE THE COMMUNITY PRIORITIES AS THEY SIT TODAY, STARTING WITH THE BLUE TILE AND MOVING TO THE RIGHT.
WE'VE GOT HIGH PERFORMING GOVERNANCE AS A PRIORITY.
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WE'VE GOT A SAFE AND HEALTHY COMMUNITY, INCLUSIVE AND ENGAGED COMMUNITY.SUSTAINABLE, INNOVATIVE INFRASTRUCTURE, ROBUST, RESILIENT ECONOMY.
LIVABLE COMMUNITY AND ENVIRONMENTAL STEWARDSHIP.
MAYOR AND COUNCIL, EACH OF THESE PRIORITIES BY DESIGN ARE MEANT TO REPRESENT OVERARCHING, LONG STANDING PILLARS OF GOVERNANCE THAT CAN WITHSTAND THE TEST OF TIME FOR A COMMUNITY, IN OTHER WORDS, THEY'RE NOT REALLY MEANT TO CHANGE VERY OFTEN, BY INTENT, THEY'RE BROADLY STATED, BUT THEY PROVIDE AN ONGOING BEACON OF LIGHT GUIDANCE FOR US AS WE MOVE FORWARD AS A LOCAL GOVERNMENT IN PROVIDING SERVICE TO THE COMMUNITY.
ON THE LEFT SIDE, YOU'LL SEE ANOTHER IMAGE, YOU'LL NOTICE THAT THE PRIORITIES THEMSELVES HAVE BEEN RELOCATED TO THE TOP OF IMAGE.
AND UNDERNEATH ARE SUPPORTED BY A LIST OF OBJECTIVES.
COUNCIL ALSO CREATED THESE OBJECTIVES, WHICH ARE, BY DESIGN, MORE ACTION ORIENTED, SO YOU'LL SEE IN THE WORDING ITSELF THAT THERE'S VERBS THAT WERE BY INTENT MADE THEM MORE ACTION ORIENTED.
THESE OBJECTIVES ARE THINGS THAT WOULD LIKELY BE MORE SUSCEPTIBLE TO CHANGE OVER TIME.
EACH AND EVERY, COUPLE OF YEARS, STAFF'S INTENT IS TO BRING THESE BACK IN FRONT OF COUNCIL, TO REVISIT AND TO MAKE SURE THAT THEY'RE STILL TRUE TO THE NEEDS OF THE COMMUNITY.
BOTH OF THESE BOTH THE KEY COMMUNITY PRIORITIES AND THE OBJECTIVES IN THE SUMMER OF 2020.
SO, TWO SUMMERS AGO WERE PRESENTED TO THE PUBLIC AND THE PUBLIC WEIGHED IN ON THOSE STAFF TOOK THE FEEDBACK FROM THE PUBLIC BACK TO COUNCIL, AND IN NOVEMBER OF 2020, THE COUNCIL MEMORIALIZED WHAT YOU SEE TODAY IN TERMS OF OUR KEY COMMUNITY PRIORITIES AND THE OBJECTIVES THAT SUPPORT THOSE PRIORITIES.
PRIORITY BASED, ALL OF THIS PRIORITY BASED BUDGETING INFORMATION IS AVAILABLE ON THE CITY'S WEBSITE UNDER THE CITY MANAGER'S PAGE FOR THE PUBLIC TO USE, INCLUDING THE ONLINE PBB PUBLIC FACING PORTAL.
THERE'S A LINK ON THAT PAGE FOR THE PUBLIC TO GO TO THAT PORTAL.
CHRIS FABIAN IN HIS PRESENTATION LATER TODAY, WILL ORIENT US TO THAT PORTAL AND HELP US UNDERSTAND ITS VALUE IN ALLOWING THE COMMUNITY TO GET MORE ENGAGED AND TO BETTER UNDERSTAND OUR BUDGET PROCESS AND THE ALIGNMENT OF OUR BUDGET DOLLARS IN SUPPORT OF THE COMMUNITY'S VALUES AND PRIORITIES.
I HOPE THIS BACKDROP HAS BEEN HELPFUL AND INFORMATIVE TO YOU AS A REMINDER OF HOW WE GOT TO WHERE WE'RE AT TODAY.
IF YOU HAVE ANY QUESTIONS FOR ME, I'M HAPPY TO ANSWER THOSE.
OTHERWISE WE'LL TURN THE TIME BACK OVER TO MR. FABIAN TO WALK US THROUGH THE PBB PRESENTATION.
I REALLY APPRECIATE THE INTRODUCTION, SO MUCH SO I MEAN, JUST LOOKING AT THE KEY COMMUNITY PRIORITIES AND HOW THEY ARE DEFINED.
YOU CAN'T HELP BUT BE EXCITED AS ELECTED OFFICIALS, AS EXECUTIVE LEADERSHIP, AS RESIDENTS IN THE COMMUNITY TO SEE THAT THIS IS WHAT YOU'RE TRYING TO DO.
THIS IS THE PURPOSE OF YOUR LOCAL GOVERNMENT AND THE SERVICES THAT YOU PROVIDE, THE KEY COMMUNITY PRIORITIES THAT YOU SEEK TO ACHIEVE.
AND SO IF THERE'S ANYTHING MISSING AS YOU LOOK AT, PERUSE THESE PRIORITIES AND THE WAY THAT THEY ARE DEFINED, IT'S THE BUDGET AND THAT IS THE MILLION DOLLAR QUESTION, SO TO SPEAK.
AND REALLY, AS SHANE MENTIONED, THE INITIAL OBJECTIVES, THE THREE THAT YOU HAD SEEKING BETTER ALIGNMENT OF RESOURCES WITH KEY COMMUNITY PRIORITIES, SEEKING TO BE MORE DATA DRIVEN IN YOUR APPROACH TO BUDGET DECISIONS BUT BUSINESS DECISIONS OVERALL AND ULTIMATELY LOOKING TO BE AS TRANSPARENT AS YOU POSSIBLY CAN WITH YOUR COMMUNITY ABOUT HOW
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YOU ARE MAKING DECISIONS FOR THEIR BENEFIT.WE TOO, WERE AT THIS POINT WHEN WE CREATED PRIORITY BASED BUDGETING TO SAY, HOW WOULD WE INFUSE THE BUDGET INTO THIS DISCUSSION? AND THAT'S WHAT I WANT TO GET INTO.
USING SHANE'S SLIDES I WANT TO SHOW YOU SOMETHING THAT IS THE POWER OF PRIORITY BASED BUDGETING AND FAIRLY COMPELLING TOWARDS YOUR THREE OBJECTIVES.
AND I'LL USE, BY WAY OF EXAMPLE, ONE OF YOUR PRIORITIES ENVIRONMENTAL STEWARDSHIP, AND YOU CAN DO THIS FOR ANY OF YOUR PRIORITIES OVERALL.
BUT IF YOU THOUGHT TO YOURSELF, I WONDER WHAT WE'RE INVESTING IN THIS KEY COMMUNITY PRIORITY ENVIRONMENTAL STEWARDSHIP BY WAY OF THE WORK THAT YOUR STAFF HAS DONE, THEY HAVE TAKEN THE BUDGET THEY HAVE ALIGNED IT, DISPERSED IT, ALLOCATED IT TOWARDS THE SERVICES YOU PROVIDE, AND THEY'VE TAKEN THE LAST STEP, WHICH IS TO MEASURE THE ALIGNMENT OF SERVICES WITH THESE KEY COMMUNITY PRIORITIES SO THAT YOU, AS ELECTED LEADERSHIP CAN SAY, WHAT ARE WE DOING FOR ENVIRONMENTAL STEWARDSHIP? IF A RESIDENT CAME UP AND ASKED ME, HOW MUCH ARE WE INVESTING IN THIS PARTICULAR PRIORITY AND WHAT DO WE OFFER? YOU CAN PORTRAY THIS IS YOUR BUDGET.
ALL DEPARTMENTS ACROSS THE ORGANIZATION THAT ARE USING THEIR BUDGETED RESOURCES TO FUND PROGRAMS THAT ALIGN WITH THIS PRIORITY.
THIS IS A SNAPSHOT OF THAT TOOL THAT SHANE WAS DESCRIBING THAT WE'RE ACTUALLY GOING TO HAVE AN INTERACTIVE SESSION WITH LATER ON TODAY, BUT ANY RESIDENT CAN COME IN HERE AND SEE THE LARGER THE BOX, THE THE GREATER THE BUDGET.
AND EACH OF THESE BOXES REPRESENT PROGRAMS AND SERVICES THAT ARE BEING PROVIDED THROUGHOUT THE CITY.
AND THE DARKER THE BOX REPRESENTS, THE INTENSITY OF IMPACT TOWARDS A PARTICULAR PRIORITY.
AND WE CAN GET GRANULAR RIGHT DOWN INTO THE DETAIL AND SEE PROGRAM BY PROGRAM ACROSS THE ENTIRE ORGANIZATION.
OVER THREE HUNDRED AND FIFTY INDIVIDUAL PROGRAMS AND SERVICES, YOU PROVIDE WHAT INCREDIBLE AND COMPLEX BUSINESS THAT YOU RUN.
BUT HERE FOR ENVIRONMENTAL STEWARDSHIP, THIS IS YOUR DATA.
YOU CAN SEE THINGS FROM YOUR TRANSPORTATION PLANNING TO COMMUNITY, CLIMATE CHANGE, ADAPTATION, RESILIENCE AND MOBILIZATION TO SPECIFICALLY WILDCAT HILL WATER RECLAMATION PLANT MONITORING AND PLANNING.
AND THE INDIVIDUAL PRICE TAGS FOR EACH OF THESE SERVICES THAT YOU PROVIDE.
EACH OF THESE HAVING A HIGH DEGREE OF IMPACT WITH ENVIRONMENTAL STEWARDSHIP AND YOU HAVE MANY MORE THAT YOU OFFER AS WELL THAT IMPACTS THIS PARTICULAR RESULT.
AND WE COULD SPIN THE WHEEL OF PRIORITIES AND SEE THIS TYPE OF DATA FOR EVERY ONE OF YOUR PRIORITIES ACROSS THE ORGANIZATION.
BUT THIS IS WHAT WE MEAN BY MEASURING THE INVESTMENT AND ALIGNING RESOURCES WITH KEY COMMUNITY PRIORITIES.
YOU NOW HAVE A WAY TO CONNECT YOUR BUDGET DIRECTLY TO THESE PRIORITIES, WHEREAS PRIOR TO PRIORITY BASED BUDGETING, IT'S A TOUGHER CALCULATION TO MAKE IN TERMS OF HOW YOUR BUDGET ACTUALLY CONNECTS TO THE PRIORITIES THAT YOU SEEK TO ACHIEVE.
WHAT WE WILL INVESTIGATE WHEN WE GET INTO THE INTERACTIVE SESSION AS WELL, WE CAN LOOK MORE GLOBALLY AS WELL IN TERMS OF THE TOTAL INVESTMENT OF YOUR BUDGET TOWARDS ANY AND ALL OF YOUR KEY COMMUNITY PRIORITIES, THAT WILL BE SOMETHING THAT WILL BE VERY FUN TO DO HERE IN JUST A FEW MINUTES.
YOUR SECOND OBJECTIVE WAS ABOUT BEING DATA DRIVEN AND HOW WE INTERPRET THAT WITH PRIORITY BASED BUDGETING IS DATA DRIVEN FOR A PURPOSE.
WE ALL OBSERVE THE WORLD AROUND US AND WE HAVE DATA POINTS AND WE USE THEM TO INFORM DECISIONS THAT WE MAKE.
BUT IN PRIORITY BASED BUDGETING, WE MEAN TO BE PRIORITY DRIVEN AND DATA DRIVEN BY WAY OF HOW WE USE RESOURCES TO FUND PROGRAMS, NOT TO RUB IT IN.
BUT I SAW THAT THIS WAS IN THE FORECAST FOR THE CITY OF FLAGSTAFF, AND I KNOW IT'S ON ITS WAY HERE TO DENVER TOMORROW MORNING.
SO, YOU KNOW, LEAVE US A LITTLE BIT.
BUT HERE ARE TWO VERY RECENT ARTICLES TAKING PLACE IN THE CITY OF FLAGSTAFF.
AND WE KNOW YOU HAVE SNOW REMOVAL AND YOU MIGHT WONDER TO YOURSELF, HUH? I WONDER WHEN IT COMES TO SNOW REMOVAL IN TERMS OF BEING DATA DRIVEN, WHAT DOES IT COST US TO PROVIDE SNOW REMOVAL?
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I WANT EACH OF YOU FOR NO MORE THAN 10 SECONDS.THIS IS NOT AN EXAMINATION, BUT TAKE A SECOND AND GUESS, HOW MUCH DO YOU BELIEVE THAT FLAGSTAFF INVESTS FOR SNOW RELATED WORK? TAKE FIVE SECONDS, TAKE 10 SECONDS.
ALL THINK ABOUT WHAT YOU DO FOR SNOW REMOVAL AND MAYBE PUT DOWN ON PAPER A DOLLAR AMOUNT FOR WHAT YOU THINK YOU INVEST IN THIS PARTICULAR OPERATION.
IT'S LIKE ONE OF THOSE GAMES, LIKE GUESS HOW MANY CANDY CORNS ARE IN THE JAR AND.
CHRIS THEY WANT TO KNOW IF THEY CAN PHONE A FRIEND.
YOU CAN EITHER PHONE A FRIEND.
RICK TADDER IS IN THE ROOM AND HEIDI AND THE TEAM, OR YOU CAN GO TO YOUR OWN WEBSITE.
YOU CAN CLICK NOW ON YOUR PRIORITY BASED BUDGETING.
OPEN PBB DATA AND PULL UP ALL THE PROGRAMS RELATED TO SNOW.
AND WE'LL SHOW YOU HOW TO DO THIS.
BUT IT'S SNOW PLOWING OF BASIC REMOVAL OF SNOW WITH YOUR PLOWS AND GRADERS FROM DOWNTOWN SELECT AREAS.
IT'S REALLOCATION OF SNOW AROUND CITY FACILITIES, CITY HALL CIVIC SPACES.
THOSE ARE TWO DIFFERENT SNOW PLOWING OPERATIONS.
YOU HAVE SNOW REMOVAL AT THE AIRPORT, YOU HAVE SNOW REMOVAL TAKING PLACE THROUGHOUT THE CITY.
YOU KNOW, I ACTUALLY PULLED UP THIS IS KIND OF FUNNY, BUT YOU CAN AS YOU SEARCH ON PROGRAMS AND THEIR DESCRIPTIONS, I INADVERTENTLY PULLED UP YOUR SNOWFLAKE FESTIVAL AS WELL AS A SPECIAL EVENT, BUT TAKE A LOOK AT ALL THE DIVERSE OPERATIONS THAT YOU PROVIDE.
AND NOW, BECAUSE YOU HAVE IDENTIFIED PROGRAM AND SERVICE DATA AND PUT A PRICE TAG ON IT, WE CAN GET DOWN TO HOW MUCH EACH OF THESE INDIVIDUAL OPERATIONS YOU'RE INVESTING IN.
AND THAT'S WHAT IT REALLY MEANS TO BE DATA DRIVEN IS YOU'RE RUNNING A BUSINESS.
LOCAL GOVERNMENT HAS GOT TO BE ONE OF THE MOST COMPLEX BUSINESSES TO RUN.
MANY OF YOU, AS ELECTED OFFICIALS PROBABLY HAVE EXPERIENCE IN RUNNING OPERATIONS.
WE DON'T OFFER THREE HUNDRED AND FIFTY AND THEN SOME INDIVIDUAL PROGRAMS AND SERVICES.
THAT'S A LOT TO KEEP TRACK OF.
BUT NOW YOU HAVE THAT PROGRAM LEVEL BUSINESS INTELLIGENCE TO REALLY HELP YOU MANAGE AND MAKE GREAT DECISIONS.
AND LAST BUT NOT LEAST, WE TALK ABOUT BEING TRANSPARENT OVERALL TO THE RESIDENTS AND WHAT YOU'RE DOING AND HOW YOU'RE PROVIDING THESE SERVICES THAT YOU PROVIDE.
AND I WANT TO RECOGNIZE THAT THE CITY OF FLAGSTAFF IN YOUR WORK IN PUTTING THIS INFORMATION ONLINE HAS DONE SOMETHING THAT VERY FEW PRIORITY BASED BUDGETING COMMUNITIES HAVE DONE, EVEN AMONG THE 300 PLUS WHO WE HAVE SERVED.
BEING BOLD AND BRAVE ENOUGH TO TAKE YOUR PRIORITY BASED BUDGETING DATA AND ALLOW AND INVITE YOUR RESIDENTS TO ACCESS THIS INFORMATION IS A GIFT TO YOUR COMMUNITY OVERALL.
AND THAT'S EASY FOR ME TO SAY.
BUT LET ME GO ONE STEP FURTHER.
I'LL TELL YOU WHY SOME COMMUNITIES DON'T DO IT.
SOME COMMUNITIES GET DOWN TO THE LEVEL OF MEASURING HOW MUCH THEY'RE INVESTING IN THEIR PROGRAMS, AND THEY'RE A LITTLE AFRAID OF PUBLISHING THAT INFORMATION AND ALLOWING RESIDENTS TO SCRUTINIZE EVERY TAX DOLLAR INVESTED IN THE MULTIPLE SNOW REMOVAL OPERATIONS.
BECAUSE, AS YOU KNOW, AS ELECTED OFFICIALS, IT'S EASY FOR RESIDENTS TO TAKE ISSUE WITH HOW THE TAX DOLLARS ARE BEING SPENT.
BUT YOU'VE TAKEN SUCH A BOLD STEP TO SAY, HERE IT IS.
HERE'S HOW WE'VE ALLOCATED OUR BUDGET, AND WE'VE DONE A RIGOROUS APPROACH TO TRY TO ANALYZE EVERY, RESOURCE THAT THIS COMMUNITY INVESTS IN ITS LOCAL GOVERNMENT.
WE'VE ALIGNED IT WITH THE SERVICES THAT WE'RE OFFERING YOU, AND WE'RE SHOWING YOU HOW THOSE SERVICES ALIGN WITH OUR PRIORITIES.
THAT IS IT'S A BOLD MOVE, AND WE HIGHLY RESPECT AND ADMIRE YOU FOR DOING IT AS PART OF YOUR VALUE SYSTEM AND WHY YOU EMBARKED ON THIS PARTICULAR PROCESS OVERALL.
AND SO THAT'S WHAT IT MEANS TO BE TRANSPARENT.
SO I WANTED TO SIMPLY REFLECT BACK TO YOU AFTER SHANE HAD GONE THROUGH THE THREE OBJECTIVES THAT YOU SOUGHT TO ACHIEVE WHEN YOU EMBARKED ON YOUR JOURNEY.
HOW MUCH PROGRESS YOU ARE MAKING TOWARDS FULFILLING THOSE OBJECTIVES OVERALL AND NOW GRADUATING FROM JUST THE CITY OF FLAGSTAFF PERSPECTIVE TO A NATIONAL AND INTERNATIONAL PERSPECTIVE.
THESE ARE VERY RECENT DECEMBER 7TH AND, WELL, IT'S IN DECEMBER AS WELL.
BOTH OF THESE PICTURES ARE FROM THE INDUSTRY, THE ASSOCIATIONS THAT REPRESENT
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CITY MANAGERS AND ARE RAISING AND EDUCATING CITY MANAGERS FOR THE FUTURE, AS WELL AS FINANCE DIRECTORS FOR ALL LOCAL GOVERNMENTS.THIS IS ICMA AND GFOA, WHO I HAD REFERENCED EARLIER.
BOTH ASSOCIATIONS ARE ADVOCATING FOR BUDGET TRANSFORMATION FOR THE 21ST CENTURY, RETHINKING LOCAL GOVERNMENT BUDGETING AND YOU MIGHT ASK WHY? WHY IS THIS HAPPENING RIGHT NOW? OUR OLD METHOD OF BUDGETING AT THE LINE-ITEM LEVEL, WHICH IS BUDGETING FROM THE PERSPECTIVE OF HOW MUCH ARE WE SPENDING ON BOOKS AND MATERIALS AND SUPPLIES AND UNIFORMS AND GAS AND OIL AND VEHICLE MAINTENANCE? THAT BUDGET PROCESS HAS BEEN AROUND FOR 100 YEARS.
I PRESENTED EARLIER THIS YEAR AT THE HUNDRED YEAR CELEBRATION, THE CENTURY MARK FOR LINE-ITEM BUDGETING, AND WHILE FASCINATING TO SEE HOW IT'S WITHSTOOD THE TEST OF TIME.
AND WHILE LINE ITEM BUDGETS ARE NOT GOING AWAY, WE STILL NEED THEM FOR SPENDING CONTROL FOR REPORTING AT THE STATE LEVEL.
THE RECOGNITION IS THAT TO ADDRESS THE KIND OF ISSUES THAT WE FACE TODAY AS ELECTED LEADERSHIP, AS PASSIONATE PUBLIC SERVANTS, WE NEED BETTER TOOLS TO TAKE THE ABUNDANCE OF RESOURCES THAT WE HAVE AND ENSURE WE HAVE ENOUGH TO FUND OUR CARBON NEUTRALITY PLAN OR OUR CLIMATE ACTION PLAN AS MANY OF OUR COMMUNITIES HAVE IN ORDER TO FUND ENVIRONMENTAL STEWARDSHIP IN ORDER TO TACKLE CREATING A SAFER COMMUNITY OR LOCAL ECONOMIC VITALITY.
AND THE LINE ITEM BUDGET ALONE IS SIMPLY NOT NIMBLE ENOUGH TO BE ABLE TO MAKE RESOURCE REALLOCATION, TRADE OFF DECISIONS AND EQUIP YOU WITH THE TOOLS THAT YOU NEED TO REALLY CONFRONT AND ADDRESS THE CHALLENGES AND PRIORITIES OF OUR FUTURE FUND THEM APPROPRIATELY.
THAT'S WHY THESE ASSOCIATIONS ARE REALLY PUTTING AN EXCLAMATION MARK ON BUDGET TRANSFORMATION.
ICMA IS INCLUDING A 21ST CENTURY BUDGETING WITH PRIORITY BASED BUDGETING AS PART OF A CREDENTIAL FOR CITY MANAGERS.
IT'S THE ONLY CREDENTIAL IN THE INDUSTRY FOR CONTINUING EDUCATION, AND THE GOVERNMENT FINANCE OFFICERS ASSOCIATION HAS INCORPORATED PROGRAM REPORTING.
MEANING BEING TRANSPARENT LIKE YOU ARE IN THE BUDGET BOOK ABOUT HOW MUCH YOU'RE INVESTING IN YOUR PROGRAMS, AS WELL AS RESOURCES TOWARDS OUTCOMES IN THEIR DISTINGUISHED BUDGET AWARD, WHICH IS THE THE UPPER ECHELON OF AWARDS FOR LOCAL GOVERNMENT BUDGETING AND REPORTING.
AND SO THAT'S WHERE WE ARE AND THAT IS WHERE YOU ARE ON YOUR JOURNEY.
I WANT TO GET INTO A LITTLE BIT MORE DETAIL TO SHOW YOU WHAT THIS IS ALL ABOUT AND AGAIN, REFLECT THE CITY OF FLAGSTAFF'S PATH, IN PART BECAUSE I KNOW SOME OF YOU ARE BRAND NEW TO THIS AS ELECTED OFFICIALS THINKING ABOUT WHAT IS PRIORITY BASED BUDGETING AND FOR OTHERS WHO I HAVE MET BEFORE IN THE ROOM.
IT CAN ALWAYS BE HELPFUL JUST TO HAVE A LITTLE BIT OF A REFRESHER.
SO THAT IS WHAT THE NEXT SECTION OF THIS PRESENTATION IS ALL ABOUT.
IN YEARS PAST, IF YOU RECALL, I HAD COME TO THE CITY OF FLAGSTAFF WITH KATHIE NOVAK, WHO IS A FORMER ELECTED OFFICIAL, FORMER MAYOR AND PAST PRESIDENT OF THE NATIONAL LEAGUE OF CITIES.
AND KATHIE'S SIMPLE POINT HAS BEEN FOR ELECTED OFFICIALS WE ARE TOLD THAT THE BUDGET IS THE MOST IMPORTANT POLICY DOCUMENT, THE MOST IMPORTANT POLICY DOCUMENT THAT WE HAVE TO COMMEMORATE WHAT WE'RE TRYING TO ACHIEVE AND TO BACK IT UP WITH THE FUNDING TO ACTUALLY ACHIEVE OUR PRIORITIES OVERALL.
AND YET WHEN SHE SAYS THAT AND SHE OPENS HER PRESENTATION LIKE THAT EVERY SINGLE TIME IT LEAVES, IT HAS THE TENDENCY TO LEAVE AN UNEASY FEELING FOR ELECTED OFFICIALS WHO SAY WOW, IF THE BUDGET IS OUR MOST IMPORTANT POLICY DOCUMENT WHERE ARE WE GOING TO SEE OUR PRIORITIES COMMITTED TO AND FUNDED, HOW COME SOMETIMES I FEEL LIKE IT'S AN ACCOUNTANT'S DOCUMENT OR IT'S FILLED WITH NUMBERS AND I'M NOT A NUMBERS PERSON OVERALL.
HOW CAN WE MAKE IT SO THAT IT IS THE MOST IMPORTANT POLICY DOCUMENT THAT WE'RE ALL PARTICIPATING IN? PART OF THE REASON THAT WE FEEL THAT WAY, THIS IS GENERIC DATA BY THE WAY, IT'S LINE ITEM DATA FROM A BUDGET.
AND IF YOU'RE SQUINTING YOUR EYES AND FINDING YOURSELF, YOUR STRESS LEVELS RISING,
[00:45:02]
THAT'S PARTLY INTENTIONAL.PART OF THE REASON WE FEEL THIS DISCONNECT BETWEEN WHAT THE BUDGET IS SUPPOSED TO BE, ACCORDING TO KATHIE NOVAK, AND WHAT WE SOMETIMES SEE IT AS, WHICH IS A BUNCH OF LINE ITEMS ON A SPREADSHEET, IS BECAUSE AS YOU LOOK AT THIS AND WE'RE LOOKING AT, WELL, HOW MUCH ARE WE SPENDING ON PROFESSIONAL SERVICES THIS YEAR VERSUS PRINTING AND DUPLICATION VERSUS POSTAGE OR TRAVEL AND MEALS? IT LEAVES A LOT TO BE DESIRED WHEN YOU'RE TRYING TO SCRUTINIZE THESE LINE ITEMS AND YOU'RE ASKING THE BIGGER PICTURE QUESTION, WELL, ARE WE GETTING ANY BETTER FOR ENVIRONMENTAL STEWARDSHIP? ARE WE GETTING SAFER AS A COMMUNITY? ARE WE MAKING OUR CITIZENS HEALTHIER? THE KIND OF THINGS THAT ARE REFLECTED IN YOUR KEY COMMUNITY PRIORITIES? ARE WE IMPROVING THE ECONOMY? THERE'S SOMETHING DISJOINTED, AND THAT'S WHY WE HAD TO CREATE PRIORITY BASED BUDGETING IS BECAUSE AS WE LOOK AT YOUR PRIORITIES AND YOUR OBJECTIVES, IT IS NOT OBVIOUS HOW THE INVESTMENT IS ALIGNED OR NOT ALIGNED AND WHERE YOUR OPPORTUNITIES ARE TO PUT MORE TOWARDS YOUR PRIORITIES OVERALL.
SO FIRST AND FOREMOST, FUNDAMENTALLY, I WANT YOU TO SEE PRIORITY BASED BUDGETING IS LIKE A CONNECTOR OF THE DOTS.
YOU HAVE A PROCESS TO ALLOCATE RESOURCES, WHICH IS THE BUDGET YOU HAVE GONE THROUGH AND ESTABLISHED YOUR KEY COMMUNITY PRIORITIES OVERALL AND PRIORITY BASED BUDGETING, INTENT AND UTILITY IS TO CONNECT THOSE THINGS SO THAT YOU FEEL LIKE, WOW, THIS IS OUR MOST IMPORTANT POLICY DOCUMENT.
I CAN SEE HOW FOCUSING AT THE PRIORITY LEVEL.
I CAN NOW OPEN UP DIALOG ABOUT REDIRECTING RESOURCES OR COMMUNICATING WITH MY DEPARTMENTS ABOUT WHAT REALLY NEEDS TO BE ACCOMPLISHED AND WHERE WE NEED RESOURCE INVESTMENT TO GROW.
SO PRIORITY BASED BUDGETING IS A BASIC FRAMEWORK TO CONNECT PRIORITIES WITH THE SERVICES YOU PROVIDE AND THE RESOURCES THAT ARE INVESTED IN THOSE PRIORITIES OVERALL.
NOW I SHOW IN THE BOTTOM RIGHT THIS LITTLE NEAT EMBLEM AND WHERE I WANTED TO TRANSITION TO.
AS YOU THINK ABOUT PRIORITY BASED BUDGETING IS WHAT DOES IT ACTUALLY UNLEASH? WHAT IS POSSIBLE IF WE REALLY START TO TRANSFORM OUR BUDGET USING THIS FRAMEWORK? IS IT JUST CONNECTING THE DOTS AND NOW I SORT OF SEE THE POWER OF RESOURCES TO PROGRAMS TO PRIORITIES? OR IS THERE SOMETHING GREATER? SHOW ME THE BIG PICTURE.
SHANE TALKED ABOUT HIS JOURNEY AND THE OPEN ROAD, AND THAT'S WHAT I WANT TO DO IN THIS NEXT SECTION.
EARLIER THIS YEAR, WE PUBLISHED FOR THE FIRST TIME AN IMPACT REPORT, AND THE POINT OF THE IMPACT REPORT WAS, IN FACT, TO SHOW AMONG ALL OF THE PRACTITIONERS OF PRIORITY BASED BUDGETING WHAT ARE THEY DOING WITH IT? WHAT ARE THE SKILL SETS THAT THEY ARE MASTERING THAT ARE ALLOWING THEM TO BUDGET AND INVEST DIFFERENTLY TOWARDS THE PRIORITIES THAT THEY'RE SEEKING TO ACHIEVE? AND THERE ARE FOUR LEVELS OF MASTERY THAT WE ARE REALLY FOCUSED ON THAT REPRESENTS SKILL SETS FOR THE 21ST CENTURY, FOR STEWARDS OF RESOURCES.
THIS IS WHAT THE CREDENTIAL IS ALL ABOUT FOR THE INTERNATIONAL, CITY AND COUNTY MANAGEMENT ASSOCIATIONS WHAT CITY MANAGERS ARE BEING TAUGHT, AND THIS IS WHERE THE EVOLUTION IN THE GOVERNMENT FINANCE OFFICERS DISTINGUISHED BUDGET AWARD IS EMPHASIZING.
THESE ARE THE TYPES OF SKILL SETS THAT IF WE MASTER, WE ARE VERY CAPABLE OF APPROACHING WHAT OUR MASSIVE CHALLENGE IS FOR ANY PUBLIC SERVANT AS WE FACE THE PRESENT AND FUTURE.
AND THIS IS WHAT I WANT TO GET INTO.
SO THERE ARE FOUR LEVELS OF MASTERY.
THE VERY FIRST IS ONCE WE HAVE THIS BASIC PROGRAM DATA AND WE UNDERSTAND HOW RESOURCES ARE BEING INVESTED INTO PROGRAMS AND SERVICES AND HOW THOSE PROGRAMS INFLUENCE THE PRIORITIES THAT WE ARE TRYING TO ACCOMPLISH.
BUT THE FIRST LEVEL OF MASTERY IS DO WE COMMUNICATE USING PROGRAMS OR DO WE STILL LEAN BACK AND USE LINE ITEMS BECAUSE IT'S SOMETHING THAT WE'RE USED TO? ONE OF OUR AWARD WINNERS EARLIER THIS YEAR WAS A CITY THAT ALSO EXPERIENCES SNOW, AND THEY ARE IN THE EDMONTON, ALBERTA, AREA AND THIS IS FORT SASKATCHEWAN, ALBERTA, AND WHAT YOU'RE SEEING ON THE PAGE.
THESE ARE LINE ITEMS THAT THEY EXPRESS IN THEIR BUDGET.
I WANT YOU TO THINK ABOUT EXPERIENCES THAT YOU MIGHT HAVE HAD IN YOUR PAST LOOKING AT LINE ITEMS IN A BUDGET BOOK, AND THEIR EPIPHANY MOMENT WAS MAN WE WANT TO BE PROGRAM DATA DRIVEN?
[00:50:01]
AND YET, WHEN IT COMES TIME TO BUDGET, WE PRESENT OUR BUDGET DOCUMENT FILLED WITH LINE ITEMS. KATHIE NOVAK SAYS IF YOU WANT TO TALK ABOUT PROGRAMS AND PRIORITIES, THEN LEAD WITH PROGRAMS AND PRIORITIES, SHOW THAT INFORMATION, SHOW THOSE TRADE OFFS DON'T LEAD WITH LINE ITEMS. OTHERWISE YOU'RE INVITING A LINE ITEM DISCUSSION.AND SO THE CITY OF FORT SASKATCHEWAN, ALBERTA, IN THEIR BUDGET BOOK FOR THE VERY FIRST TIME LAST YEAR AND NOW REPEATED RIGHT NOW, THEY'RE RIGHT IN THE MIDDLE OF THEIR RECOMMENDED BUDGET PROCESS AND DELIBERATION, MOVING TOWARDS AN ADOPTED BUDGET.
BUT THEIR BUDGET BOOK LEADS WITH PROGRAMS. PROGRAMS HERE I'M SHOWING OFFERED BY A DEPARTMENT.
HERE'S AN EXAMPLE IN PUBLIC WORKS SHOWING CEMETERY OPERATIONS AS OPPOSED TO SNOW REMOVAL OR A TRAFFIC CONTROL OR EVENTS AND FESTIVALS AND THE BUDGET DISCUSSION IS SIMPLY THE TRADE OFF FROM A RESOURCE PERSPECTIVE FROM ONE YEAR TO THE NEXT.
ALONG WITH THE DESCRIPTION OF WHAT IS DRIVING THE RECOMMENDED CHANGE IN FUNDING, IS IT A SERVICE LEVEL INCREASE? AND WE NEED TO PUT NEW RESOURCES TOWARDS THE PROGRAM, WHICH BEGS THE QUESTION HOW DOES THAT PROGRAM ALIGN WITH OUR PRIORITIES? IS THAT A WORTHY CAUSE OF PUTTING MORE RESOURCES TOWARDS IT? OR IS IT A SERVICE LEVEL DECREASE WHERE A RECOMMENDATION IS SIMPLY, HEY, THIS SERVICE HAS LESS TO DO WITH OUR PRIORITIES, AND I'M THINKING OF REALLOCATING RESOURCES AWAY FROM IT.
IS IT A REVENUE INCREASE RECOMMENDATION AND SO ON AND SO FORTH? THE POINT HERE FROM THEIR BUDGET MANAGER USING AND LEADING WITH PROGRAM DATA IS THE REJOICING MOMENT FOR HAVING COUNCIL TAKE PART IN BUDGET DELIBERATIONS THAT WERE REVOLVING AROUND PROGRAMS, PROGRAM LEVELS, PRIORITIES AND TRADE OFFS, AND NOT THE LINE ITEM DETAIL BEHIND IT.
KATHIE NOVAK SHE WOULD DESCRIBE WHEN SHE WAS MAYOR, HAVING THIS BUDGET DELIBERATION DISCUSSION AT THE COUNCIL LEVEL ABOUT A MULTIMILLION DOLLAR BUDGET THAT IS UP FOR APPROVAL AND HER DISCONNECT OF WHY SHE WOULD SPEND HOURS IN THE MIDST OF THOSE BUDGET DELIBERATIONS FOCUSED ON A SPECIFIC LINE ITEM LIKE TONER FOR THE COPY MACHINES.
AND SHE JUST KIND OF RECOGNIZED THIS IS, THAT IS NOT THE RIGHT AREA FOR US TO BE FOCUSING OUR POLICY DEBATE IS AT THE LINE ITEM LEVEL WE NEED TO BE FOCUSING ON PRIORITIES AN THE PROGRAMS THAT ACTUALLY INFLUENCE THEM.
AND THAT IS EXACTLY WHAT HAS BEEN TAKING PLACE IN FORT SASKATCHEWAN.
SO THIS IS LEVEL ONE COMMUNICATING AT THE PROGRAM LEVEL, COMMUNICATING THE BUDGET WHERE YOU'RE INVESTING YOUR RESOURCES.
AND I WANT TO MOVE FROM FORT SASKATCHEWAN TO ACTUALLY GET TO YOU IN TERMS OF LEVEL ONE, BECAUSE EARLIER THIS YEAR, RESOURCE X WE GATHER OUR COMMUNITY OF PRIORITY BASED BUDGETING PRACTITIONERS IN COLLABORATION WITH GFOA AND ICMA.
AND EARLIER THIS YEAR, WE CELEBRATED WHAT WE CALL RESOURCE EXCELLENCE, THE SHINING EXAMPLES THAT WE WANT TO POINT THE ENTIRE COMMUNITY TO FOR THOSE WHO ARE ACHIEVING AT ANY OF THE LEVELS OF MASTERY HERE AT LEVEL ONE.
IF YOU DIDN'T KNOW IT ALREADY, THE CITY OF FLAGSTAFF WAS AN AWARD RECIPIENT RECOGNIZED NATIONALLY IN FRONT OF LOCAL GOVERNMENT LEADERS FROM GFOA AND ICMA.
YOU RECEIVED A CHALLENGE COIN TO COMMEMORATE YOUR ACHIEVEMENT.
AND THE REASON WE AWARDED THE CITY OF FLAGSTAFF AND THIS WAS SOMETHING THAT OTHER PBB PRACTITIONERS WEIGHED IN ON TO CELEBRATE FLAGSTAFF IS INDEED BECAUSE OF YOUR EFFORTS TO BE OPEN AND TRANSPARENT, COMMUNICATING PROGRAMMATICALLY, COMMUNICATING ABOUT PROGRAMS, COMMUNICATING ABOUT PRIORITIES TO YOUR RESIDENTS.
WE WANTED TO SHOWCASE THIS STORY BECAUSE WE'RE TRYING TO POINT OTHER PRIORITY BASED BUDGETING PRACTITIONERS TOWARDS WHAT YOU'RE DOING TO SAY THIS IS HOW YOU CAN OPEN UP A DIALOG WITH YOUR RESIDENTS.
THIS IS SOMETHING COMPLETELY DIFFERENT AND OFF THE CHARTS.
SO I WANTED YOU TO KNOW AT LEVEL ONE, YOU ARE ALREADY EXHIBITING THE TYPES OF SKILL SETS AND VALUE SYSTEM AND BOLDNESS THAT IS REQUIRED FOR THE 21ST CENTURY.
WE MOVED TO LEVEL TWO AND LEVEL TWO IN PBB MASTERY SUGGESTS THIS ONCE WE MEASURE OUR INVESTMENT INTO PROGRAMS AND WE SEE HOW THOSE INVESTMENTS ARE ALIGNED WITH PRIORITIES,
[00:55:06]
HOW DO WE USE THAT INITIAL BASELINE TO START TO MAKE CHANGE FOR THE BETTER? IN OTHER WORDS, IT'S LIKE IF YOU GET ON THE SCALE AND YOU GET A NUMBER AND YOU LOOK AT THAT AND INTERPRET IT, YOUR NEXT QUESTION IS WHERE DO I WANT TO GO FROM HERE? IN PRIORITY BASED BUDGETING, IT IS IF I'M INVESTING MY RESOURCES INTO PROGRAMS AND SERVICES THAT HAVE PERHAPS LESS TO DO WITH THE PRIORITIES THAT WE SEEK.HOW CAN I BEGIN A DISCUSSION OF REALLOCATION OF RESOURCES AND OPTIMIZATION TOWARDS THOSE PARTICULAR PRIORITIES? SO HOW DO I TAKE ONE STEP IN THE RIGHT DIRECTION? THAT'S WHAT LEVEL TWO IS ABOUT.
OUR AWARD RECIPIENT EARLIER THIS YEAR IN OUR IMPACT REPORT WAS THE CITY OF LITTLETON, COLORADO, HERE IN THE DENVER METRO AREA, WHERE IN IN 2020 THEY LOOKED AT WHAT WE CALL THE PRIORITY BASED BUDGETING BLUEPRINT, WHERE THEY FLAG EVERY PROGRAM THEY PROVIDE AND FLAG IT WITH A SENSE OF DIRECTION.
WHERE ARE THEY HEADED WITH THIS PROGRAM IN THE FUTURE, WHICH IS VERY INTERESTING IF YOU STOP TO THINK ABOUT IT.
IT'S ONE THING TO HAVE YOUR ENTIRE PROGRAM INVENTORY AND LIKE SNOW REMOVAL, LIKE WE WERE JUST LOOKING AT A MOMENT AGO, AND YOU SEE THE PRICE TAGS ON THOSE PROGRAMS, RIGHT? IT'S ANOTHER THING TO THINK THROUGH OF ALL OF THOSE PROGRAMS. WHAT DIRECTION ARE WE HEADED WITH THOSE PROGRAMS FOR NEXT YEAR AND THE YEAR AFTER? ARE THEY ON A SERVICE LEVEL INCREASE TRAJECTORY, LIKE IF YOU THINK ABOUT CYBERSECURITY IN IT THESE DAYS, THAT SEEMS TO BE A POSTER CHILD FOR WOW.
IF IT'S FIVE YEARS FROM NOW AND WE'RE STILL SPENDING THE SAME AMOUNT IN CYBERSECURITY FOR IT AS WE ARE THIS YEAR, THAT PROBABLY SEEMS BAD THAT I MIGHT BE WRONG.
BUT YOUR INTUITION IS I THINK THAT PROGRAM IS LIKELY ON A TRAJECTORY FOR SERVICE LEVEL INCREASE, WHEREAS FOR SOME OTHER PROGRAMS, MAYBE THEY'RE ON A TRAJECTORY FOR PARTNERSHIP WHERE WE'VE PROVIDED THE PROGRAM FOR SO LONG ON YOUR OWN BECAUSE THERE WAS NO OTHER POSSIBLE PROVIDER.
BUT NOW YOU'RE LOOKING TOWARDS NEXT YEAR AND THE YEAR AFTER AND YOU'RE THINKING TO YOURSELF, HMM, I BET WE CAN LEVERAGE THERE ARE PLENTY OF OTHER SERVICE PROVIDERS OUT THERE.
MAYBE THE DIRECTION FOR THIS PROGRAM IS PARTNERSHIP REGIONALIZATION, AND WE CAN PROVIDE IT MORE EFFICIENTLY OF OTHER PROGRAMS MIGHT BE ON A TRAJECTORY FOR REVENUE INCREASE.
THAT'S WHAT THE BLUEPRINT IS ALL ABOUT, AND IT'S PART OF A MENTAL SHIFT THAT EVERY PROGRAM HAS A FUTURE.
AND IF WE THINK THAT WAY, IT INVITES A DISCUSSION OF RESOURCE REALLOCATION.
WHERE CAN WE FIND OPPORTUNITIES, WHERE PARTNERSHIP IS ON THE TABLE TO REALLOCATE AND FREE UP RESOURCES THAT COULD BE MOVED TOWARDS PROGRAMS THAT NEED MORE MONEY? AND IT'S RESOURCE OPTIMIZATION AS WELL.
WHERE CAN WE LOOK AT REVENUES FROM A DIFFERENT PERSPECTIVE? GFOA IS ALSO THEY CAME OUT WITH A PAPER JUST WITHIN THE LAST FEW WEEKS ABOUT ENTREPRENEURIAL THINKING FOR RETHINKING REVENUES IN LOCAL GOVERNMENT OVERALL.
WELL, IN LITTLETON'S CASE, EVERY PROGRAM WAS DOCUMENTED.
I'M SORRY ABOUT IT, BUT I'M GOING TO TELL YOU WHAT IT SAYS.
NOT ONLY WAS EVERY PROGRAM LISTED IN THEIR BUDGET AND THE PRICE TAG AND THE DELTA, THE BUDGET RECOMMENDATION FROM ONE YEAR TO THE NEXT.
BUT EVERY PROGRAM WAS TAGGED WITH ITS TRAJECTORY FOR WHERE IT'S GOING THE NEXT YEAR AND THE YEAR AFTER THAT IN THE MIDST OF THE PANDEMIC.
THE VERY FIRST FEW MONTHS WHEN THE ECONOMIC UNCERTAINTY AROUND THE EMERGENCE OF COVID AND THE PANDEMIC REALLY TOOK HOLD.
MANY OF THESE PROGRAMS WERE MARKED WITH WE THINK WE'RE GOING TO DO A SERVICE LEVEL DECREASE OR MAINTAIN THE SERVICE OR AT LEAST SEEK A PROGRAM EFFICIENCY OTHER PROGRAMS. HOWEVER, EVEN IN THE MIDST OF THE PANDEMIC, WE'RE MARKED WITH, HEY, WE CAN'T GET BY WITH SHRINKING THIS PROGRAM, EVEN THOUGH RESOURCES ARE TIGHT.
THIS PROGRAM, LIKE CONTACT TRACING, REALLY NEEDS TO SEE AN INCREASE IN SERVICE LEVEL OVERALL, EXACERBATING THE MAGNITUDE OF OUR BUDGET CRUNCH.
THE FACT THAT SOME OF OUR PROGRAMS ACTUALLY NEED MORE RESOURCES AND THAT'S THE RIGHT THING TO DO.
SO WE HONORED LITTLETON BECAUSE THIS IS THE TYPE OF THINKING THAT WE NEED TO SEE THIS FOCUS ON REALLOCATING WHAT WE HAVE AND SEEKING TO MAXIMIZE WHERE THOSE RESOURCES COULD COME FROM ELSEWHERE.
JUST TO GO ONE STEP FURTHER, THIS NOTION OF THE IMPORTANCE OF RESOURCE REALLOCATION, WE HAVE BEEN HARPING ON THIS IN THE PRIORITY BASED BUDGETING COMMUNITY FOR YEARS, IN FACT, WE AWARDED IN 2019 THE FIRST FIVE COMMUNITIES, OR SEVEN ACTUALLY WHO HAD
[01:00:04]
DEMONSTRATED THEY COULD REALLOCATE OVER TIME IN PRIORITY BASED BUDGETING OVER 10 PERCENT OF THEIR BUDGET.YOU THINK ABOUT THAT FOR A MOMENT? THE REASON IS BECAUSE AS YOU LOOK TOWARDS YOUR FUTURE AND YOU CONSIDER THE MAGNITUDE OF THE PRIORITIES THAT YOU'RE HOPING TO FUND, WHETHER IT'S YOUR CARBON NEUTRALITY PLAN, WHETHER IT'S INFRASTRUCTURE.
AND SURE, WE HAVE THINGS LIKE ARPA AND THE INFRASTRUCTURE BILL THAT ARE COMING IN THAT ARE REALLY GOING TO HELP.
HOWEVER, IT'S NOT A VERY GOOD BET, IN MY OPINION, TO THINK THAT THERE ARE GOING TO BE LARGE WINDFALLS OF RESOURCES COMING YOUR WAY OF THE ORDER OF MAGNITUDE OF ARPA OR THE INFRASTRUCTURE BILL.
AND AS BEAUTIFUL AS THOSE BLESSINGS ARE FOR NEW RESOURCES.
HOW ELSE ARE WE GOING TO COME UP WITH RESOURCES TO FUND A BETTER FUTURE? WILL IT COME FROM ECONOMIC GROWTH IN PART? WILL IT COME SOLELY FROM RESIDENTS WANTING TO PAY MORE FOR TAXES? HMM.
ANYBODY'S GUESS, BUT OUR CLIENTS SAY NO.
AND THEREFORE, WHAT ARE OUR OPPORTUNITIES TO MAYBE OPTIMIZE INTERNALLY? LOOK FOR PARTNERSHIPS, LOOK FOR EFFICIENCIES, REALLOCATE WHAT WE HAVE.
THAT'S WHAT WE'VE BEEN PROMOTING.
I'LL DO ONE MORE PUNCH LINE AND THEN GET TO FLAGSTAFF.
WE CAN MEASURE YEAR UPON YEAR RESOURCE REALLOCATION FOR OUR ORGANIZATIONS.
AND YOU SEE, SHAWNEE KANSAS, FOR EXAMPLE, REALLOCATED 11 PERCENT OF THEIR BUDGET.
I MEAN, THEY'VE BEEN DOING PRIORITY BASED BUDGETING SINCE THE BEGINNING, PROBABLY BACK TO 2010.
AND SO THAT'S JUST REMARKABLE TO SEE THAT.
YOU SEE EAST LANSING, MICHIGAN, THEY REALLOCATE SIX PERCENT OF THEIR BUDGET.
I'M FOCUSED ON THE RIGHT HAND SIDE.
SALEM, OREGON FIVE PERCENT AND 25 MILLION.
AND IF YOU LOOK ON THE LEFT HAND SIDE, WHEN I'M DEMONSTRATING HERE, THIS IS THE ORDER OF MAGNITUDE OF THEIR ARPA SPENDING.
SO SHAWNEE RECEIVED 7.5 MILLION IN ONE TIME FUNDS FROM THE AMERICAN RESCUE PLAN, WHILE THROUGH PRIORITY BASED BUDGETING, THEY'VE REALLOCATED 15 MILLION.
THEY RECEIVED 12 MILLION FROM ARPA.
THEY REALLOCATED LESS ABOUT EIGHT MILLION.
SALEM, OREGON THIRTY FOUR MILLION FROM ARPA.
TWENTY FIVE MILLION IN RESOURCE REALLOCATION.
THESE ARE TWO DIFFERENT CONCEPTS WHY AM I DRAWING YOUR ATTENTION TO IT? BECAUSE IF WE CAN MASTER RESOURCE REALLOCATION, IT'S ON PAR WITH AN ONGOING FREED UP ABUNDANCE OF RESOURCES ON PAR, SOMETIMES MORE, SOMETIMES A LITTLE LESS.
IT'S LIKE HAVING ARPA EVERY YEAR, AND SO IT'S A HUGE SKILL SET TO BE ABLE TO MASTER.
AND SO THEN YOU WONDER, WELL, HOW CAN WE GET MOVING IN THIS DIRECTION? I POINT YOU TO CITY OF FLAGSTAFF'S WORK IN WHAT WE CALL PROGRAM INSIGHTS, WHICH IS LOOKING AT EVERY SINGLE PROGRAM THAT YOU HAVE TAGGING IT WITH A SENSE OF ITS FUTURE.
WHAT IS THE DIRECTION THAT THIS PROGRAM IS HEADING? DO WE HAVE AN EFFICIENCY OPPORTUNITY? DO WE HAVE A PARTNERSHIP OPPORTUNITY OVERALL? DOES THIS PROGRAM NEED NEW RESOURCES? THIS IS A SNAPSHOT OF FLAGSTAFF DATA FROM YOUR BUDGET THAT SO MANY OF YOUR PROGRAMS HAVE BEEN TAGGED WITH A FUTURE FOCUSED OPPORTUNITY.
AND I WANT TO REPORT TO YOU THE GOOD NEWS YOU'RE ON YOUR WAY TOWARDS THIS SKILL SET TOWARDS THIS VALUE SYSTEM OF RESOURCE REALLOCATION FOLLOWING THE BLUEPRINT AND LOOKING AT MASTERY OVERALL.
I HAVE A COUPLE MORE STORIES, AND BY APPROXIMATELY 9:45 ON MY TIMELINE, WE'LL MOVE INTO THE INTERACTIVE SESSION, SO JUST LESS THAN TEN MINUTES HERE.
THE THIRD LEVEL OF PRIORITY BASED BUDGETING MASTERY SUGGESTS THAT IF WE CAN START TO UNDERSTAND THE POWER OF RESOURCE REALLOCATION, THEN WHERE MIGHT WE HEAD WITH THAT? IF WE COULD REALLOCATE EVEN FIVE PERCENT OF OUR BUDGET LIKE WE SHOWED FOR SALEM, OREGON AND FREE UP SOME OF OUR INTERNAL RESOURCES, WHERE WOULD WE GO? IN OTHER WORDS, IS 10 PERCENT GOOD.
IT'S FIVE PERCENT REALLOCATION GOOD.
THE ONLY WAY TO POSSIBLY ANSWER THAT QUESTION IS TO ASK IT A DIFFERENT WAY AND SAY, WHAT DO WE NEED RESOURCES TO DO THAT WE CAN'T AFFORD TO DO TODAY? AND THAT WILL HELP US ANSWER HOW MUCH WE NEED TO TRY AND REALLOCATE WITHIN AND HOW MUCH WE NEED TO TRY TO BRING IN FROM PARTNERSHIPS AND OUTSIDE SOURCES.
SO LEVEL THREE AND MASTERY IS HOW DO WE FUEL RESOURCES TOWARDS THE RESULTS OF TOMORROW? OUR AWARD RECIPIENT THIS YEAR AT THE CONFERENCE WAS THE CITY OF PITTSBURGH, PENNSYLVANIA.
THE CITY OF PITTSBURGH CAME TO US APPROXIMATELY THIS TIME LAST YEAR.
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THEY HAD A CLIMATE ACTION PLAN.IF ANY OF YOU HAVE FOLLOWED MAYOR BILL PEDUTO, THEIR CHIEF SUSTAINABILITY OFFICER, GRANT ERVIN.
AND THEIR HYPER FOCUS ON CLIMATE ACTION, PITTSBURGH, AT LEAST FROM A POLICY PERSPECTIVE, HAS BEEN SUCH A LEADER IN THIS FIELD.
HOWEVER, AS IT CAME TO LAST YEAR'S BUDGET IN THE MIDST OF THE PANDEMIC, REMEMBER LAST YEAR, SO LONG AGO, THIS WAS BEFORE WE KNEW THAT THE AMERICAN RESCUE PLAN ACT WAS EVEN A DREAM OR THE INFRASTRUCTURE BILL.
THINGS WERE TIGHT LAST YEAR, AND SO AS PITTSBURGH APPROACHED THEIR BUDGET ADOPTION, THE HORRIBLE FEELING AND REALIZATION THEY HAD WAS WHILE THEY HAD THIS AMBITIOUS AND FUTURE FOCUSED CLIMATE ACTION PLAN.
MAYBE NOT UNLIKE YOUR CARBON NEUTRALITY PLAN, IT WAS FILLED WITH INITIATIVES, EACH INITIATIVE WITH A PRICE TAG.
WHEN IT CAME TIME TO THE BUDGET, THEY HAD NO NO RESOURCES TO FUND THIS PLAN.
THEIR CHIEF SUSTAINABILITY OFFICER, GRANT ERVIN, IN DISCUSSIONS WITH THE BUDGET DIRECTOR, HEARD THE LANGUAGE BEING USED TO DESCRIBE THE CLIMATE ACTION PLAN WAS THAT IT WAS FILLED WITH UNICORN PROJECTS, UNICORN INITIATIVES, MEANING THINGS THAT DON'T EXIST.
THERE ARE NO RESOURCES TO BE ABLE TO FUND THIS CLIMATE ACTION PLAN.
PITTSBURGH ACHIEVED THE AWARD THIS YEAR FOR FUELING RESOURCES TOWARDS THEIR UNFUNDED RESULTS OF TOMORROW BECAUSE THEY USED PRIORITY BASED BUDGETING AND THIS MASTERY SKILL SET OF RESOURCE REALLOCATION.
AND IN THEIR BUDGET, THEY HAVE A MUCH LARGER BUDGET THAN A LOT OF CITIES.
BUT THEY CAME UP WITH $23 MILLION WORTH OF RESOURCE REALLOCATION OPPORTUNITIES.
USING THAT INSIGHT PROCESS THAT I WAS JUST SHOWING FOR FLAGSTAFF, THEY FREED UP TWENTY THREE MILLION FROM CURRENT OPERATIONS AND IDENTIFIED ANOTHER 18 MILLION FROM NEW REVENUE OPPORTUNITIES OVERALL TO FUEL $41 MILLION TOWARDS THEIR UNFUNDED CLIMATE ACTION PLAN.
IT'S A DROP IN THE BUCKET, BUT IT'S A LOT BIGGER THAN ZERO.
AND THAT'S WHERE MAYOR PEDUTO IS COMING FROM IS WE HAVE TO STAY COMMITTED.
THE MAYOR AND GRANT ERVIN WERE JUST IN GLASGOW FOR THE CLIMATE CONFERENCE A FEW WEEKS AGO, TALKING ABOUT HOW WHEN IT COMES TIME FOR THE BUDGET, FOR ALL OF OUR ASPIRATIONS ON CLIMATE, WE HAVE TO BACK THEM UP WITH RESOURCES.
WE HAVE TO BE CLEAR THAT WE DON'T JUST HAVE PLANS FOR CARBON NEUTRALITY, BUT THAT WE ARE USING OUR BUDGET TO PRIORITIZE HOW WE ARE ALLOCATING OUR SCARCE RESOURCES AND ALIGNING THEM WITH THE PRIORITIES THAT WE SEEK.
AND I BRING THIS UP, OF COURSE, BECAUSE AS WE SEE YOUR WORK, NOT ONLY TO FOCUS ON CARBON NEUTRALITY, BUT TO HIGHLIGHT IT, WE APPLAUD YOU FOR YOUR DIRECTION.
THIS IS A SNAPSHOT FROM YOUR REPORT.
YOU ARE TAKING THE INITIATIVE TO IDENTIFY SOLUTIONS, A GOAL [INAUDIBLE], A TARGET AND THROUGH YOUR WORK IN PRIORITY BASED BUDGETING.
MUCH LIKE PITTSBURGH, YOU HAVE THE OPPORTUNITY TO FOCUS ON ALIGNING YOUR RESOURCES WITH THE ACHIEVEMENT AND THE FUNDING OF THESE PARTICULAR INITIATIVES OVERALL.
AND LAST BUT NOT LEAST, THIS IS MORE TOWARDS YOUR FUTURE.
THIS IS A LITTLE BIT DOWN THE ROAD.
THIS IS A LITTLE BIT DOWN THE ROAD FOR ANY OF OUR CLIENTS OVERALL, BUT IT'S WORTH THINKING ABOUT FROM A BIG PICTURE PERSPECTIVE BECAUSE AS SHANE SHOWED THAT ROAD ON YOUR JOURNEY, YOU WILL GET HERE EVENTUALLY.
SO WILL MANY OF THE PRIORITY BASED BUDGETING COMMUNITIES WE HAVE TO.
AT SOME POINT WE'VE MADE ALL THE TRADE OFF DECISIONS THAT WE CAN INTERNALLY, AND THERE ARE NO BETTER INTERNAL TRADE OFFS THAT GET US ANY FURTHER TOWARDS OUR PRIORITIES.
WE COULD DEFUND ONE HIGH PRIORITY PROGRAM IN ORDER TO FUND ANOTHER, BUT WE DON'T GET ANY BETTER FROM THAT.
SO YOU WILL EXHAUST YOUR OPPORTUNITIES FOR INTERNAL REALLOCATION AND RESOURCE OPTIMIZATION.
WHERE DO YOU GO FROM THERE? YOU JUST GO BACK TO THE RESIDENTS.
SOME OF THE THE LEADERS IN PRIORITY BASED BUDGETING HAVE FIGURED OUT THAT AT THAT MOMENT, IT'S MOST IMPORTANT TO RECOGNIZE THAT WE ARE NOT ALONE.
THE CITY OF FLAGSTAFF AS AN OPERATION, IS NOT THE ONLY OPERATION IN THE REGION.
THERE ARE OTHER PUBLIC SECTOR ORGANIZATIONS WHO ALSO HAVE A BOUNTY OF RESOURCES AND MAY IN FACT HAVE SHARED RESULTS THAT THEY'RE TRYING TO SEEK THAT YOU HAVE IN COMMON.
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THERE'S THE PRIVATE SECTOR.AND TO THE EXTENT THAT WE CAN START TO THINK ABOUT ALIGNING RESOURCES REGIONALLY OUTSIDE OF THE CONFINES OF OUR OWN ORGANIZATION AND TAPPING INTO THEIR RESOURCE ABUNDANCE TOWARDS MUTUALLY SHARED OBJECTIVES FOR THE COMMUNITY.
THAT'S WHERE WE CAN REALLY SEE.
IT'S AS IF YOU'RE EXPANDING THE BUDGET WELL BEYOND FLAGSTAFF'S BUDGET TOWARDS ALL OF THE RESOURCES THAT GO TO OTHER ENTITIES IN THE REGION OVERALL.
WE WROTE ABOUT THIS IN A PAPER CALLED GOVERNMENT AS A PLATFORM WITH THE GOVERNMENT FINANCE OFFICERS ASSOCIATION.
AND IT IS ABOUT REGIONAL RESOURCE OPTIMIZATION, LEVERAGING ALL OF YOUR COMMUNITY RESOURCES.
YOU SEE IT WITH ARPA DOLLARS RIGHT NOW.
WE HAVE COMMUNITIES LIKE DURHAM, NORTH CAROLINA WHO IS PARTNERING SPECIFICALLY WITH THE CITY OF DURHAM AND DURHAM COUNTY TO POOL RESOURCES FROM THE AMERICAN RESCUE PLAN ACT AND LOOK AT WHAT THEY CAN DO TOGETHER.
WE WORKED WITH THE CITY OF PUEBLO, COLORADO, ON THEIR ARPA RESOURCES, AS WELL AS THEY ARE POOLING THOSE RESOURCES WITH THE COUNTY GOVERNMENT.
HERE'S MOFFAT COUNTY IN COLORADO, WHERE I LIVE.
LOOKING TOWARDS SHARED LAUNDRY SERVICES WITH THEIR REGIONAL HOSPITAL BECAUSE THEY BOTH HAVE MASSIVE LAUNDRY NEEDS, FROM NURSING HOMES TO THE HOSPITALS DEMAND TO EVEN THE SHERIFF'S OFFICE AND THE JAIL.
TOLEDO, OHIO, WORKING ON LEAF COLLECTION, WHICH WAS PREVIOUSLY SUBSIDIZED BY GENERAL GOVERNMENT TAX DOLLARS AND NOW FAST FORWARDING, THEY HAVE MANY PRIVATE SECTOR COMPANIES CAPABLE OF PARTNERING WITH THEM, ALLOWING TOLEDO TO REALLOCATE WHAT THEY HAD SPENT PREVIOUSLY TO PUBLIC SAFETY PROGRAMS. THE CITY OF ENGLEWOOD AND DENVER, COLORADO, WITH THE EMERGED FLEET AND FIRE OPERATION FOR GREATER REGIONAL SERVICE.
AND SO THE CONCEPT IS ACTUALLY QUITE SIMPLE.
IT'S JUST LOOKING AT OTHER PROVIDERS IN OUR COMMUNITY AND HOW TO TAP INTO THEIR RESOURCES OVERALL.
WELL, THAT IS HOW WE HAVE REACHED THIS POINT OF HAVING 300 IMPLEMENTATIONS, AND WE HOPE TO HAVE SO MANY MORE.
BUT IT IS THANKS TO YOUR EFFORTS AND LEADERSHIP THAT WE HAVE BEEN ABLE TO GET TO THIS POINT AND AGAIN, JUST SO UTTERLY THANKFUL FOR WHAT WE'VE BEEN ABLE TO DO TOGETHER.
AND IT'S AT THIS POINT THAT I WOULD ACTUALLY LIKE TO INVITE US TO LOOK AT SOME OF YOUR DATA AND BE ABLE TO HAVE YOU EXPLORE IF YOU HAVEN'T ALREADY.
WHAT IS IN YOUR PRIORITY BASED BUDGETING DATA SET WHAT CAPABILITIES YOU HAVE AT YOUR FINGERTIPS.
BEFORE I DO THAT, I DID WANT TO TAKE JUST ONE QUICK BREAK BECAUSE WE'LL HAVE A TRANSITION AS EVERYBODY GETS INTO THE TOOLS TO SEE.
ARE THERE ANY QUESTIONS THAT I CAN ADDRESS IT AT THIS MOMENT BEFORE GETTING INTO THE FUN PART, THE INTERACTIVE PART? AND THIS WILL ALSO BUY ME SOME TIME TO POUR SOME COFFEE.
IT DOESN'T LOOK LIKE WE HAVE ANY QUESTIONS HERE IN THE ROOM.
SO IN THAT CONTINUUM ARE THE LEVEL OF MASTERY OF PBB WHERE'S THE COST RECOVERY AND RESOURCE REALLOCATION COME INTO PLAY.
KIND OF THE THE WHOLE PICTURE HERE.
IN SOME RESPECTS, IT MATTERS AT ALL LEVELS IS ONE TRUE ANSWER.
CLEARLY, AS YOU HAVE COME UP WITH YOUR PROGRAM INFORMATION, YOU IN FLAGSTAFF HAVE YOUR PROGRAM INVENTORY YOU ARE COSTS ALLOCATED, SO YOU HAVE A PRICE TAG FOR EVERY PROGRAM AND REVENUE ALLOCATION IS A PART OF CREATING THAT INITIAL DATA SET.
AS IT COMES TO COST RECOVERY EVERY SINGLE PROGRAM THAT YOU PROVIDE CAN BE EVALUATED THROUGH THAT LENS.
DO WE HAVE THE REVENUES COMING IN TO SUPPORT THE COSTS OF THE PROGRAM? AS FLAGSTAFF HAS EMBARKED ON WHAT WE CALL THE PROGRAM INSIGHTS, TALKING ABOUT EVERY PROGRAM HAS A FUTURE.
AS YOU CAN SEE, AS I'M HOVERING MY MOUSE OVER THIS TOP SECTION FOR REVENUE INCREASES FROM FEES OR CHARGES AND REVENUE OPPORTUNITIES THROUGH INSOURCING AND GRANT FUNDING AND REVENUE OPPORTUNITIES THROUGH RATES, THE CITY HAS ALREADY BEGUN TO IDENTIFY
[01:15:11]
SOME OF THE TOP OPPORTUNITIES THAT ARE PROBABLY WORTHY OF DISCUSSION AT A POLICY PERSPECTIVE.FROM THROUGH THE LENS OF COST RECOVERY.
SO AT LEVEL ONE, YOU HAVE THE DATA AND THEN THE NEXT DISCUSSION BECOMES WHAT IS APPROPRIATE.
WHAT IS THE FUTURE? SOME PROGRAMS YOU MAY WANT TO KEEP YOUR REVENUES LOW BECAUSE YOU'RE IN A COMPETITIVE ENVIRONMENT OR YOU'RE TRYING TO BE GREAT STEWARDS TOWARDS YOUR RESIDENTS OVERALL AND IN OTHER SITUATIONS, YOU MIGHT HAVE PROGRAMS WHERE THERE IS AN IMMENSE OPPORTUNITY TO SEEK COST RECOVERY, AND THAT'S WHY THEY BECOME POLICY DISCUSSIONS.
UNLIKE ON THE REALLOCATION SIDE OF THINGS, CLEARLY THAT IS LEVEL TWO ALL THE WAY.
IT IS REALLY GETTING INTO THE DISCIPLINE AND THE HABIT OF IDENTIFYING WAYS THAT WE CAN FREE UP RESOURCES, REALLOCATE THEM TOWARDS PROGRAMS THAT ACTUALLY NEED RESOURCES AND THEY NEED TO GROW.
SO AGAIN, I APPLAUD THAT YOU'RE OUT OF THE STARTING GATES, TO BE SURE.
BY IDENTIFYING THE FUTURE OF PROGRAMS THAT ARE OFFERED IN FLAGSTAFF, I THINK YOU'RE EVEN GOING TO GET INTO IT MORE AS YOU GET INTO THIS YEAR'S BUDGET PROCESS OVERALL.
I SAW THE BUDGET MEMO THAT WENT OUT, AND I DON'T WANT TO STEAL ANY THUNDER FROM RICK OR HEIDI OR CHRIS RHODE SHANE OR ANYBODY FROM THE BUDGET TEAM.
BUT THERE WAS SPECIFIC FOCUS IN THE BUDGET MEMO AROUND PROGRAMMATIC REVIEW FOR OPPORTUNITIES TO REALLOCATE RESOURCES FROM DEPARTMENTAL BUDGETS, LOOKING AT PROGRAMS THAT HAVE LESS ALIGNMENT WITH KEY PRIORITY AREAS THAT MAYBE ARE LESS MANDATED.
MAYBE SOMEBODY ELSE PROVIDES AND MAYBE THEY DON'T RECOVER THEIR OWN REVENUE.
THOSE ARE GREAT OPPORTUNITY AREAS TO COMMENT ON AND SEE IF THERE IS A RESOURCE REALLOCATION OPPORTUNITY OVERALL.
SO THAT IS HAPPENING RIGHT NOW IN THE MIDST OF YOUR BUDGET PROCESS.
CHRIS, WE HAVE SHANE DILLE, WHO'D LIKE TO SAY SOMETHING.
CHRIS, IN PART OF THE RESPONSE TO THE QUESTION ON COST RECOVERY, PART OF THE WORK HAS BEEN DONE IN WHAT WE'VE LAID OUT ALREADY AS AN ORGANIZATION.
AND WHAT I'M REFERRING TO IS THE SCORING PROCESS TO THE PROGRAMS THAT WE HAVE INVENTORIED IN OUR SYSTEM.
PART OF THAT SCORING PROCESS IS IDENTIFYING THE POTENTIAL FOR COST RECOVERY OR REVENUE POTENTIAL.
AND SO, YOU KNOW, PART OF THE TASK AHEAD OF US AND IN FURTHERING THE EFFORT OF COST RECOVERY IS IDENTIFYING THE PROGRAMS THAT LEND THEMSELVES MORE STRONGLY TO COST RECOVERY, AND I THINK PART OF THAT WORK IS ALREADY DONE IN THE INVENTORY THAT WE PUT TOGETHER, SO I JUST WANTED TO ADD THAT INSIGHT AS WELL.
SHANE YOU GAVE ME AN IDEA AS WELL AS OFTEN HAPPENS IN THE MIDST OF A LIVE PRESENTATION WHEN WE GET TO THE INTERACTIVE PART.
PERHAPS I CAN SHOW HER THAT SCORING DETAIL CAN COME TO LIFE THAT YOU JUST REFERENCED.
I CAN'T SEE A LIVE LOOK INTO THE MEETING, BUT KATTIE, IF YOU CAN GUIDE ME.
ARE THERE ANY OTHER QUESTIONS THAT ARE? WE DO NOT HAVE ANY MORE HANDS UP AT THIS TIME.
SO I'M GOING TO GO LIVE INTO YOUR DATA SET INTO YOUR TOOLS AND INTO YOUR PUBLIC FACING DATA SITE.
I WILL DROP A LINK IN THE COMMENT AREA IN TEAMS SO THAT YOU CAN ACCESS THIS WEBSITE AS WELL.
THIS IS ON YOUR HOME PAGE, SO YOU MIGHT BE ABLE TO BEAT ME TO IT.
IF YOU GOOGLE FLAGSTAFF PRIORITY BASED BUDGETING OR YOU SIMPLY GO ONTO YOUR OWN HOME PAGE, YOU CAN NAVIGATE TOWARDS THE PAGE THAT I'M SHOWING YOU ON THE SCREEN AND I'M GOING TO DO THE EXACT SAME THING.
BECAUSE IT'S PRETTY COOL TO BE ABLE TO DO THIS.
I NEED TO COPY THIS LINK AND GO TO [INAUDIBLE].
AND IF YOU ARE ON YOUR COMPUTER, YOU CAN CLICK ON THE LINK THAT I DID PUT INTO
[01:20:02]
THE MEETING CHAT.WHEN YOU CLICK ON THAT LINK, YOU GO RIGHT BACK TO YOUR OWN HOME PAGE.
THIS IS WHAT ANY RESIDENT OR STUDENT OF PRIORITY BASED BUDGETING CAN DO.
AND AS I GO DOWN A LITTLE BIT FURTHER, I CAN CLICK ON THE SECTION THAT SAYS TO LEARN MORE ABOUT PBB, PLEASE VIEW THE VIDEOS BELOW AND VISIT OUR PBB PRESENT SITE TO VIEW AND INTERACT WITH BUDGET DATA.
AND I'M GOING TO CLICK ON THAT LINK.
AND I'LL WAIT JUST A SECOND JUST TO MAKE SURE EVERYBODY IS COMING ALONG FOR THE RIDE AND IF THERE ARE ANY QUESTIONS.
SO I'LL EXPAND MY SCREEN A LITTLE BIT.
I WANT TO GIVE YOU A LITTLE BIT OF TUTORIAL AND THEN WE'RE GOING TO HAVE A LITTLE BIT OF TIME TO TO PLAY AROUND AND THAT'S IMPORTANT.
ONE OF THE OBJECTIVES THAT I HAD FOR US ALL TODAY IS TO MAKE SURE THAT, YOU KNOW, THAT THIS SITE EXISTS.
IT'S IMPORTANT NOT ONLY IN THE BUDGET PROCESS AS YOU'RE CONSIDERING PROGRAMS AND BUDGET REQUESTS THAT ARE COMING FORWARD, BUT IT'S IMPORTANT OUTSIDE OF THE BUDGET PROCESS AS YOU'RE AT HOME AND YOU'RE THINKING ABOUT SNOW REMOVAL AND YOU WANT TO QUIZ YOUR FAMILY MEMBERS OVER THE HOLIDAYS ABOUT HOW MUCH THEY THINK THAT YOU ARE SPENDING ON SNOW OR IF YOU'RE OUT WITH YOUR CONSTITUENTS AND THEY'RE ASKING YOU, WHAT ARE YOU DOING TO PROVIDE FOR A ROBUST, RESILIENT ECONOMY? I WANT TO SHOW YOU HOW YOU CAN ANSWER THAT QUESTION BY SAYING, HERE'S WHAT WE'RE DOING.
I'M GOING TO PULL UP ALL OF THE PROGRAMS THAT ARE ALIGNED WITH THAT PARTICULAR KEY COMMUNITY PRIORITY AND SHOW YOU WHAT WE'RE WORKING ON OR WHEN SHANE SAYS, HEY, IN TERMS OF COST RECOVERY, EVERY PROGRAM THAT HAS BEEN EVALUATED IN PRIORITY BASED BUDGETING HAS BEEN SCORED WITH THAT DETAIL.
I WANT TO SHOW YOU WHERE YOU CAN GO TO FIND OUT THAT INFORMATION.
SO WHEN YOU OPEN UP THE SITE, YOU DO GET SOME NICE TUTORIALS.
I AM NOT GOING TO WALK US THROUGH TODAY, BUT IT'S LEADING YOU THROUGH A QUICK LESSON ON HOW EVERYTHING IS FRAMED.
FIRST, YOU WILL SEE YOUR KEY COMMUNITY PRIORITIES LISTED FIRST.
AND THAT IS WHAT WE ARE DRAWING ATTENTION TO WHEN YOU CLICK ON ANY ONE OF THESE HERE THE TUTORIAL IS SAYING IF I CLICK ON HIGH PERFORMING GOVERNANCE, THEN THE TOOL IS GOING TO FOCUS ON PROGRAMS THAT ACHIEVE THAT PARTICULAR KEY COMMUNITY PRIORITY.
THIS SECTION SAYS AFTER EVERY TIME THAT I CLICK A PRIORITY RIGHT BELOW IT, YOU'RE GOING TO SEE SOME MORE DEFINITION.
AND THAT'S HELPFUL BECAUSE AS YOU LOOK AT EACH OF THESE PRIORITIES, THEY SEEM PERHAPS HIGH LEVEL.
SHANE, IN HIS GRAPHIC EARLIER ON, IF YOU RECALL, SHOWED US WE HAVE THE HIGH LEVEL TITLE FOR EACH PRIORITY.
AND THEN IF YOU RECALL ON HIS SLIDE OVER TO THE RIGHT, WE HAD SPECIFIC DEFINITIONS FOR EACH OF THOSE PRIORITY AREAS AND WE'VE TRIED TO BRING THOSE TO LIFE IN THIS PRESENTATION ORIENTED TOOL.
AS WE SCAN DOWN BELOW ONE OF THE FIRST CHARTS THAT WE'RE ABLE TO SEE IS A LOOK AT EACH OF YOUR KEY COMMUNITY PRIORITY AREAS AND THE INVESTMENT THAT IS GOING INTO THOSE RESULTS AREAS.
WE CALL THEM RESULTS, YOU CALL THEM PRIORITIES.
YOU MIGHT NOTICE THE DIFFERENT GRADATION.
THERE'S A DARK COLOR, A VERY DARK, INTENSE COLOR, AND THEN THEY GET A LITTLE BIT LIGHTER.
THE DARKER THE COLOR MEANS THAT THE INVESTMENT IN THAT PRIORITY IN TERMS OF PROGRAMS THAT HAVE A HIGH DEGREE OF IMPACT ON THAT PRIORITY.
THAT'S WHAT THE DARKER THE COLOR IS ALL ABOUT.
EVERY PROGRAM WAS SCORED IN TERMS OF ITS ALIGNMENT AND IMPACT ON THESE PRIORITY AREAS.
AND IT WASN'T A YES OR NO QUESTION.
IT WAS ALLOWING FOR SOME PROGRAMS TO BE TAGGED WITH A HIGH DEGREE OF IMPACT.
THE NEXT LEVEL WAS SOME DEGREE OF IMPACT, A LESSER DEGREE OF IMPACT AND NO IMPACT WHATSOEVER.
THOSE ARE THE DIFFERENT GRADATIONS.
AND THAT'S KIND OF NEAT BECAUSE, YOU KNOW, YOU HAVE YOU HAVE SOME PROGRAMS THAT HAVE EVERYTHING TO DO WITH ACHIEVING ENVIRONMENTAL STEWARDSHIP, AND THAT IS THE INTENSE COLOR.
AND THEN YOU HAVE SOME PROGRAMS WHERE THAT'S NOT THE CENTRAL FOCUS OF THE SERVICE, BUT IT'S IF WE STOP PROVIDING THAT PROGRAM, IT WOULD HAVE A NEGATIVE EFFECT ON
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ENVIRONMENTAL STEWARDSHIP OVERALL.SO THAT'S WHY WE ALLOW FOR A SIMPLE GRADATION IN TERMS OF IMPACT.
YOU MIGHT NOTICE HERE AS WELL.
JUST WHILE I'M HERE IN THIS CHART THAT ALL OF THESE BARS ADD UP TO A CERTAIN LEVEL OF SPENDING, THAT'S WHAT THE DOLLAR AMOUNT IS DOWN BELOW.
AND IT'S ALWAYS THE SIZE OF THE TOTAL SPENDING ON PROGRAMS IN PRIORITY BASED BUDGETING.
AND THE REASON IS BECAUSE SOME PROGRAMS CAN IMPACT MULTIPLE PRIORITY AREAS.
SO YOU'RE YOU'RE WITNESSING THE MEASUREMENT OF ALL THE INVESTMENT TOWARDS A PARTICULAR PRIORITY AREA, EVEN IF A PROGRAM, FOR EXAMPLE, IMPACTS ENVIRONMENTAL STEWARDSHIP AND A SAFE AND HEALTHY COMMUNITY.
THIS IS ALWAYS ADDING UP TO THE TOTAL AMOUNT OF YOUR OPERATING BUDGET, YOUR PROGRAM BUDGET OVERALL.
AND ONE LAST LITTLE PIECE OF TUTORIAL WE SEPARATED PROGRAMS THAT ARE OFFERED DIRECTLY TOWARDS YOUR RESIDENTS.
THOSE ARE CALLED COMMUNITY ORIENTED PROGRAMS. THEY IMPACT THE COMMUNITY DIRECTLY AS OPPOSED TO GOVERNANCE PROGRAMS, WHICH AREN'T OFFERED WITH THE INTENT OF BEING COMMUNITY FACING.
GOVERNANCE PROGRAMS ARE OFFERED TO KEEP THE LOCAL GOVERNMENT RUNNING SUCCESSFULLY.
SO YOU HAVE PROGRAMS IN BUDGET OR LEGAL OR RISK OR PURCHASING OR SOME IN THE CITY MANAGER'S OFFICE FLEET AND FACILITIES AND SO ON.
THOSE ARE INTERNAL FACING GOVERNANCE PROGRAMS THAT WERE ALSO SCORED AND MEASURED FOR THEIR ALIGNMENT WITH PRIORITY AREAS.
BUT THOSE ARE SEPARATE THAN THE COMMUNITY FACING PROGRAMS, WHICH ARE EVALUATED AGAINST COMMUNITY FACING RESULTS.
AND THE PUNCH LINE IS THE COMBINED TOTAL IS WHAT YOU'RE SEEING IN ALL PRIORITIES AT THE BOTTOM.
THESE ARE COMMUNITY FACING AS WELL AS INTERNAL GOVERNANCE PROGRAMS OVERALL.
THAT'S ONE OF THE FIRST CHARTS THAT YOU SEE.
IT'S OF INTEREST TO SEE YOUR TOTAL INVESTMENT INTO THOSE PRIORITY AREAS.
BUT THEN WE ARE ABLE TO MOVE FROM THAT FIRST SUMMARY TABLE TO THE NEXT COMPONENT AND THE NEXT COMPONENT.
TO TAKE A LOOK AT ONE IS CALLED TREE PLOT, AND THE NEXT IS CALLED TABLE, WHICH IS JUST MORE TABULAR FORM OF DATA.
AND THIS APPEALS TO HOWEVER YOUR BRAIN WORKS.
SOME PEOPLE REALLY LIKE THE OVERALL TREE PLOT.
AND SOME PEOPLE LIKE THE TABLE.
LET ME SHOW YOU WHAT THIS IS ALL ABOUT.
OK, SO AS I CLICK ON TREE PLOT RIGHT NOW, YOU SEE THE COLOR ALIGNMENT IS WITH THE HIGH PERFORMING GOVERNANCE AND CORRESPONDINGLY, THE ONLY GRADATION WE SEE IN THE COLORS FOR THESE PROGRAMS COMES AT THE GOVERNANCE LEVEL.
SO YOU'RE LOOKING OVER HERE ON THE RIGHT HAND SIDE, THESE ARE GOVERNANCE PROGRAMS THAT WERE SCORED AGAINST HIGH PERFORMING GOVERNANCE.
I SEE DOWN BELOW THAT NOW WE HAVE PROGRAMS AND SERVICES FROM THE COMMUNITY ORIENTED PROGRAM AREAS, NOT THE GOVERNANCE.
AND THESE ARE REPRESENTING ALL OF THE PROGRAMS THAT HAVE A HIGH DEGREE OF ALIGNMENT ON A SAFE AND HEALTHY COMMUNITY.
AGAIN, HERE ARE THOSE DEFINITIONS.
HERE ARE THE PROGRAMS WHERE TO REMIND YOU THE LARGER THE BOX, THE MORE BUDGET IS GOING TOWARDS THAT PROGRAM.
THE DARKER THE BOX, THE GREATER THE ALIGNMENT THAT THAT PROGRAM HAS WITH THE RESULT.
SO HERE, IF I WERE JUST SCANNING OVER THE PROGRAMS THAT APPEAR TO HAVE THE HIGHEST IMPACT ON A SAFE AND HEALTHY COMMUNITY, I'M SEEING CRIMINAL INVESTIGATIONS, I SEE COMMUNITY POLICING, I SEE SNOW PLOWING.
HEY, SNOW PLOWING DEFINITELY HAS SOMETHING TO DO WITH KEEPING THE COMMUNITY SAFE JUST AS MUCH AS MEDICAL RESPONSE OR WILDFIRE MANAGEMENT.
AND THEN AS WE GO FURTHER DOWN INTO THE MOSAIC, THESE ARE SMALLER AND SMALLER PROGRAMS, WHICH WE CAN HOVER OVER AND BEGIN TO SEE WHAT THEY'RE ALL ABOUT.
I CAN CLICK ON ANY OF THESE PROGRAMS TOO TO GO DEEPER PAST THE FACT THAT THEY'RE COMMUNITY ORIENTED NOW TOWARDS THE DEPARTMENTS WHERE THEY COME FROM.
SO HERE I'VE GONE ONE LEVEL DEEPER, I'LL CLICK ON.
LET'S JUST CLICK ON WILDFIRE MANAGEMENT FOR A MOMENT, AND I SEE SOME VISUALIZATION OF COSTING DATA.
[01:30:01]
HOW THIS PROGRAM IS FUNDED FROM A PERSONAL PERSPECTIVE VERSUS NON-PERSONAL AND SOME BASIC DETAIL ON FTE STAFFING AND EVEN A DESCRIPTION.THIS IS CLIMATE ADAPTATION CREW ONE FLAGSTAFF WATERSHED PROTECTION PROJECT, FLEET EQUIPMENT AND OTHER THINGS INVOLVED WITH WHAT YOU DO FOR WILDFIRE MANAGEMENT.
I'M GOING TO GO BACK TO THE OVERALL PICTURE.
I THINK YOU'LL HAVE A GOOD TIME AS YOU MOVE THROUGH SOME OF THESE OTHER RESULT AREAS TOWARDS PRIORITY AREAS THAT IS THAT ARE OF MOST INTEREST TO YOU, ROBUST RESILIENT ECONOMY, LIVABLE COMMUNITY AND SO ON AND SO FORTH.
FINALLY, I'M GOING TO MOVE TO THIS TABLE AREA, WHICH IS THE SAME DATA, BUT NOW THIS TIME PRESENTED IN TABULAR FORM.
SO EARLIER IN THE PRESENTATION, I WAS SHOWING YOU ENVIRONMENTAL STEWARDSHIP AND THE TYPES OF PROGRAMS AND SERVICES THAT HAVE A HIGH DEGREE OF ALIGNMENT WITH THIS PARTICULAR OUTCOME.
AND WE KNOW THAT, BY THE WAY, THAT THEY SCORED.
AND YOU MIGHT WONDER WHAT IS THAT ABOUT, AS I'M LOOKING AT WASTEWATER COLLECTION SYSTEMS OR TRANSPORTATION PLANNING? EACH PROGRAM WAS SCORED ON A SLIDING SCALE.
A SIMPLE SCALE OF ZERO TO FOUR.
ZERO MEANS THAT THE PROGRAM HAS NOTHING TO DO WITH THAT PRIORITY AREA.
A ONE OR A TWO WOULD MEAN THAT THE PROGRAM HAS SOMETHING TO DO WITH THAT PRIORITY AREA AND A THREE AND A FOUR MEANS THAT THAT PROGRAM HAS A LOT TO DO WITH THE ACHIEVEMENT OF THAT PRIORITY AREA OVERALL.
SO IT'S A LANGUAGE IT'S SIMPLE SHORTHAND FOR HIGH DEGREE OF IMPACT VERSUS A LESSER DEGREE OF IMPACT OVERALL.
AND THE TABLE IS ALWAYS FILTERING OR SORTING FROM TOP TO BOTTOM ON PROGRAMS WITH THE HIGHEST DEGREE OF IMPACT.
AND I'M SHOWING YOU THIS BECAUSE WE HAVE HEARD FROM NUMEROUS ELECTED OFFICIALS, WHETHER THEY HAVE LIKE A COFFEE WITH COUNCIL.
IF YOU HAVE COMMUNITY EVENTS THAT ARE TAKING PLACE THAT ARE ORGANIZED AROUND A SPECIFIC PRIORITY AREA.
LET'S SAY YOU'RE OUT THERE TALKING ABOUT SUSTAINABLE, INNOVATIVE INFRASTRUCTURE BECAUSE YOU HAVE A COMMUNITY TOWN HALL ON THE INFRASTRUCTURE BILL.
YOU CAN BRING UP FOR YOUR COMMUNITY THE TYPE OF PROGRAMS THAT YOU OFFER TODAY THAT ARE ALL ABOUT CREATING THAT SUCCESSFUL PRIORITY AREA.
HERE'S WHAT YOU'RE SPENDING LOOKS LIKE IF YOU HAD A COMMUNITY TOWN HALL ON WHAT WE'RE DOING TO CREATE A SAFE AND HEALTHY COMMUNITY AND GREATER COMMUNITY SAFETY, WE CAN BRING UP THESE PROGRAMS FOR HERE'S WHAT WE INVEST IN TODAY TO LOOK AFTER YOUR SAFETY FROM CRIMINAL INVESTIGATIONS TO GROUNDWATER OPERATIONS AND MAINTENANCE FOR YOUR WELLS, COMMUNITY POLICING AND IN WILDFIRE MANAGEMENT, SO ON AND SO FORTH OVERALL.
IT'S ALWAYS A DRILL DOWN FROM THE PRIORITY LEVEL TO THE PROGRAMS, AND THEN SOME CORRESPONDING DETAILED INFORMATION ABOUT THE PROGRAM PRICE TAG, ITS DESCRIPTION, WHICH IS ALWAYS HELPFUL AND HOW IT IMPACTS THAT PARTICULAR PRIORITY AREA.
I WANTED TO SHOW YOU, IF YOU REMEMBER WHEN I WAS DEMONSTRATING HOW MUCH YOU SPEND ON SNOW, YOU CAN ALWAYS USE THE SEARCH BOX.
THIS IS WHERE I PULLED THAT INFORMATION FROM MY SLIDE, WHICH BROUGHT UP THE SNOWFLAKE FESTIVAL, JUST AS IT BROUGHT UP SNOW PLOWING AND OTHER OPERATIONS.
WHEN I TYPE IN SNOW THE TABLE IS PULLING ANY PROGRAM BY NAME THAT HAS SNOW IN IT AND ANYTHING IN THE DESCRIPTION.
THAT'S WHY I BROUGHT UP SNOWFLAKE, BUT IT BECOMES REALLY HANDY BECAUSE IF I WERE THINKING ABOUT YOUR CARBON NEUTRALITY PLAN, WHICH I WAS IN PREPARATION FOR THIS PRESENTATION AND I BRING UP SOMETHING LIKE CLIMATE.
VERY QUICKLY, I CAN SEE OUR WILDFIRE MANAGEMENT PROGRAM.
I CAN SEE OUR COMMUNITY CLIMATE CHANGE, ADAPTATION, RESILIENCE AND MOBILIZATION AND OUR CLIMATE ACTION PLAN OVERALL.
AND AS YOU'RE THINKING ABOUT OTHER THINGS, IF YOU'RE CURIOUS ABOUT EVENTS.
IT'S ANYTHING THAT COMES TO MIND, AND THAT IS WHERE I WANTED TO TAKE THE NEXT SECTION.
IF YOU WANT TO EXPERIMENT OR HAVE ME SEARCH FOR SOMETHING OR SEARCH ON YOUR OWN, I WOULD LOVE FOR YOU TO TAKE FIVE MINUTES AND GO AHEAD AND PLAY IN THE SEARCH AREA AND
[01:35:03]
SEARCH FOR PROGRAMS THAT ARE OF INTEREST TO YOU.AND THEN I CAN BE HERE, OF COURSE, TO SEE IF I CAN HELP DEMONSTRATE ANYTHING ON THE SCREEN.
FIVE MINUTES IF YOU NEED A BREAK IN THE ACTION, YOU CAN GO AHEAD AND GET A COFFEE REFILL.
BUT WE'LL PLAN TO KEEP THIS GOING.
I'LL BE HERE IF ANYBODY HAS A PROGRAM EXAMPLE THAT THEY WANT TO SHOUT OUT AND I CAN TAKE A LOOK AT IT OR ANSWER ANY OTHER QUESTIONS ABOUT HOW YOU NAVIGATE IN THIS PORTAL.
BUT WHILE YOU TAKE A CHANCE TO PLAY, WE'LL JUST COMMIT.
AT 10: 15 WE'LL COME BACK AND PICK UP WHERE WE LEFT OFF.
THANK YOU, CHRIS, AND I'M ALSO HERE TO HELP PROBLEM SOLVE NAVIGATING THROUGH IT, AND SO WE'RE TRYING TO FIGURE OUT WHAT INFORMATION YOU CAN GET FROM IT.
[INAUDIBLE] AND THE WHOLE BUNCH OF STUFF.
YOU KNOW, I FOCUSED BY THE STATE AND I THINK THIS IS, [INAUDIBLE].
SO CONSIDERING HOW MUCH THE VALUE OF SUSTAINABILITY ACTION IS I'M CURIOUS WHAT YOUR THOUGHTS ARE.
IT MIGHT BE MORE EFFECTIVE EVEN IN THE CHAT, JUST BECAUSE I'M GETTING PART OF WHAT YOU'RE SAYING AND PART OF WHAT OTHER CONVERSATIONS.
AND I WASN'T ABLE TO SIFT THROUGH THE DATA COMING TO MY EARS.
[LAUGHTER] SURE YOU CAN GO AHEAD ADAM.
I WAS JUST ASKING YOU WHEN I SAID CLIMATE, I SEE A TOTAL OF ABOUT FOUR HUNDRED K WHEN I CONSIDER HOW MUCH OF A PRIORITY THAT IS TO THE CITY.
CURIOUS WHAT YOUR INSIGHT WAS WHEN LOOKING AT THAT.
[INAUDIBLE] A COUPLE OF QUICK REFLECTIONS AND WOULD ALSO WELCOME RICK OR SHANE ON THAT FRONT AS WELL.
I JUST REALIZED I DIDN'T HAVE MY CAMERA ON.
SO KEEP IN MIND THAT THESE ARE THE PROGRAMS AND SERVICES BEING OFFERED AS OPPOSED TO ANY OF YOUR CAPITAL PROJECTS.
SO THE PRIORITY BASED BUDGETING THAT HAS TAKEN PLACE THUS FAR HAS BEEN FOCUSED ON DAY TO DAY OPERATIONS.
SO STAFF WORKING ON A CLIMATE ACTION PLAN, THOSE WHO WORK ON WILDFIRE MITIGATION, IF ON THE OTHER HAND, YOU HAD A MASSIVE FACILITY MODERNIZATION EFFORT TO CREATE A BETTER USE OF ENERGY OR SOMETHING LIKE THAT THAT WOULD NOT SHOW UP IN THIS OPERATIONAL, PRIORITY BASED BUDGETING.
AND THAT IS CLEARLY WHERE SOME LARGE DOLLAR AMOUNTS ARE EXISTING.
RIGHT NOW, WE'RE JUST FOCUSING ON THAT BASE BUDGET BUT ONGOING RESOURCES THAT WE APPLY TO ALL THESE [INAUDIBLE] OBJECTIVE TO THE COUNCIL.
SO WHEN YOU'RE LOOKING AT AND YOU WANT TO ALLOCATE, SO THEY ARE TRULY ONGOING RESOURCES THAT CAN BE ALLOCATED VERSUS THOSE ONE TIME EXPENSES WE MAY HAVE.
AND WE'VE TALKED ABOUT HOW DO WE DO CAPITAL IN A PRIORITY BASED BUDGETING? LOOK AROUND.
ALSO AND I'M SURE CHRIS WILL GUIDE US THROUGH THAT WHEN WE GET TO THAT LEVEL OF MASTERY AS WE MOVE FORWARD.
WHERE ARE YOU GETTING THAT NUMBER FROM? IF YOU SEARCH CLIMATE IN THE SEARCH BAR UNDER THE TABLE SECTION.
WHAT TAB? IT DEPENDS ON WHICH ONE OF THE TABS.
RIGHT? WELL, ACTUALLY, THERE'S A DIFFERENT TAB IN SUSTAINED [INAUDIBLE].
[01:40:06]
YEAH, RIGHT.YOU DON'T SEE [INAUDIBLE] CLIMATE IN THE SEARCH BAR.
WELL, YOU GOT A WILDFIRE MANAGEMENT, OF 1.9 RIGHT? RIGHT.
PLUS 164, I THINK THOSE ARE THE SAME ONES YOU'RE SEEING.
THAT'S THE THREE LINE I'M TALKING ABOUT.
[INAUDIBLE] YEAH I JUST THINK [INAUDIBLE] THESE TOGETHER.
HOW ABOUT YOU? WE MAY DO AN ACTIVITY WITHIN OUR PROGRAM.
WE TRY TO OUTLINE THAT [INAUDIBLE] ENVIRONMENTAL STEWARDSHIP.
IF THAT WAS DETERMINED BY THE SUSTAINABILITY TEAM THAT THEY WANT TO SCORE AND COST THAT AREA, THEY WOULD HAVE SET UP A PROGRAM CALLED THAT.
I'M NOT SURE IF THEY HAVE THAT AS A PROGRAM OR SUSTAINABILITY OF THE PROGRAM.
SO IN BUSINESS IT'S KIND OF ACTION AS TOTAL.
CLIMATE ACTION IS A PROGRAM RIGHT? AND WE ARE COMING IN AT ONE HUNDRED SIXTY FOUR THOUSAND.
BUT I DON'T THINK WE'RE GOING TO GET VERY FAR.
WELL, IT WOULD BE NICE OF PROGRAM BECAUSE I PUT IN SUSTAINABILITY AS AND YOU CAN THINK OF SOMETHING ELSE.
THE OCCASIONAL BEHAVIORAL CHANGE EVENTS AND CAMPAIGNS.
AND IT WOULD BE NICE IF THE PROGRAM HAD SOME KEYWORDS TO TAKE YOU TO CERTAIN AREAS THAT WERE RELATED OR WHAT PRIORITY.
ABOUT PRIORITIES AND DISCUSSION LATER.
AND CHRIS, I THINK WE'RE READY.
YOU ASKED US TO COME BACK TO YOU AT 10:15.
SO MY OBSERVATION WAS ABOUT A LOT OF ENGAGEMENT.
I LOVE THAT COUNCIL MEMBER SHIMONI IS DIVING INTO SEE CLIMATE, AND THEN IT OPENS UP SOME NEW QUESTIONS.
AND QUESTIONS CLEARLY, WE COULD HELP ANSWER ABOUT CAPITAL PROJECTS VERSUS OPERATING.
YOUR RECOMMENDATION ON ADDING KEYWORDS COULD BE REALLY HELPFUL.
NOW THAT YOU SEE HOW PROGRAM DESCRIPTIONS CAN BE BROUGHT TO LIFE, THAT'S SOMETHING THAT COULD BE ADDED TO PROGRAM DESCRIPTIONS IN THE FUTURE SO THAT WHEN YOU SEARCH, YOU'RE PULLING PROGRAMS THAT HAVE A CERTAIN FLAG FOR THINGS THAT YOU'RE LOOKING FOR.
AND MAYBE THERE ARE MANY MORE PROGRAMS THAT COULD COME TO THE TABLE.
BUT SORRY ABOUT THAT, I HAD A QUICK INTERRUPTION.
AT THE SAME TIME I LOST MY TRAIN OF THOUGHT.
OH, I KNOW WHAT I WAS GOING TO SAY.
AS YOU OBSERVE PROGRAMS THAT HAVE LESS FUNDING THAN WHAT YOU MIGHT IMAGINE OR WHERE YOU HOPE YOU ARE GOING IN THE FUTURE, THAT'S WHERE THE BUDGET COMES IN.
WHEN WE SAY, HEY, HOW ARE WE GOING TO ENSURE THAT WE'RE FUNDING A PARTICULAR PROGRAM OR INITIATIVE AT THE LEVEL THAT WE WANT TO REALLY BE IN LINE WITH THE PRIORITIES THAT WE SEEK TO ACHIEVE? NOW, IF I'M A DEPARTMENT AND I'M HEARING THIS PART OF THE DISCUSSION, I'M AT LEAST KEYING IN THAT I WANT TO GEAR MY BUDGET REQUEST TOWARDS THAT PARTICULAR PRIORITY AREA.
AND THAT IS WHERE I WANTED TO HEAD IN MY FINAL SECTION.
AND MY FINAL SECTION IS BRIEF, BUT IT'S TALKING ABOUT THE BUDGET AND THEN I DID HAVE SOME TIME THAT I CAN.
I WANTED TO LEAVE OPEN FOR JUST SOME MORE OBSERVATIONS AND DISCUSSION
[01:45:03]
AND Q&A BEFORE MY SECTION OF PBB IS WRAPPED UP HERE.SO I'M GOING TO COME BACK TO YOUR TO THE SLIDES HERE, AND IT IS A LOOKING TOWARDS THE FUTURE COMPONENT, SO WHERE I WANTED TO FOCUS ON LOOKING TOWARDS THE FUTURE IS, IN FACT YOUR UPCOMING BUDGET PROCESS AND SOMETHING THAT WE'RE REALLY EXCITED AGAIN ABOUT THE EVOLUTION OF YOUR TEAM IN BRINGING BUDGET DEVELOPMENT TO LIFE WITH PRIORITY BASED BUDGETING.
SO I WANT TO SHOW YOU SOMETHING GENERIC AND THIS IS NOT FLAGSTAFF DATA.
ACTUALLY, IT'S PITTSBURGH DATA.
AND WHAT I'M GOING TO WALK YOU THROUGH IS HOW BUDGET DEVELOPMENT CAN TAKE PLACE AND HOW IT MIGHT BE MORE RICH IN WHAT YOU'RE ABOUT TO GET INTO.
SO IN PITTSBURGH, THEY'RE USED TO BUDGETING AT THE LINE-ITEM LEVEL.
IN OTHER WORDS, REQUESTS THAT COME FORWARD ARE EXPRESSED IN TERMS OF A REQUEST FOR NEW BUDGET AT THE LINE ITEM LEVEL.
SO IF I WAS IN A CITY PLANNING DEPARTMENT, I WOULD GET MY LINE ITEM DATA.
I WOULD ANALYZE MY TRENDS OVERALL IN SPENDING.
I WOULD MAKE MY RECOMMENDATION MOVING FORWARD AND HAVE SOME SORT OF TALLY THAT I NEED LESS FOR COMPUTER MAINTENANCE THIS YEAR.
COMPUTER MAINTENANCE NEVER NEEDS LESS.
I NEED MORE FOR PROFESSIONAL SERVICES, A LITTLE BIT MORE FOR WORKFORCE TRAINING BEING ILLUSTRATIVE.
I SUBMIT MY LINE ITEM BUDGET REQUEST AND FOR DEPARTMENTS, THAT HAS BEEN THE WAY WE HAVE DONE THINGS FOR A CENTURY.
THIS IS WHAT BUDGETING AT THE LINE ITEM LEVEL LOOKS LIKE AND THE CHALLENGE IN YOUR SHOES AS ELECTED OFFICIALS OR AS A CITY MANAGER OR AS BUDGET STAFF, OR EVEN FROM THE DEPARTMENT PERSPECTIVE, IS LET'S HONE IN ON THIS TWENTY FIVE THOUSAND DOLLAR INCREASE FOR PROFESSIONAL SERVICES.
WE'RE FILLED WITH QUESTIONS ABOUT THE NATURE OF THIS REQUEST.
WE WANT TO KNOW IF I FUND THIS DOES IT IMPACT OUR OUR ENVIRONMENTAL STEWARDSHIP PRIORITY IF I DOUBLE THE FUNDING DOES IT REALLY HAVE AN IMPACT ON PRIORITY AREAS THAT WE'RE TRYING TO ACHIEVE? OR CONVERSELY, IF I SAID NOT ONLY AM I NOT FUNDING THIS REQUEST, BUT LET'S LOOK AT THE BASE BUDGET AND REDUCE THAT FOR PROFESSIONAL SERVICES, DOES THAT HAVE ANY IMPACT ON PRIORITIES? THESE ARE QUESTIONS THAT WERE BEGGING TO KNOW.
ON TOP OF THAT IS THIS ABOUT A MANDATE? IS THERE SOME SORT OF STATE MANDATE REQUIRING US TO INCREASE FUNDING FOR PROFESSIONAL SERVICES? IS THERE A PARTNER WHO COULD HELP OFFLOAD THESE COSTS? IS THERE GRANT FUNDING? WHY ARE WE ASKING FOR BUDGET FOR THIS? CAN WE GET SOME REVENUE OFFSET? THESE ARE THE TYPES OF WROTE QUESTIONS THAT WE ALWAYS ARE ASKING.
AND SO TO BE ABLE TO REPLAY THIS AND SAY, WHAT IF WE HAD THE SAME TWENTY FIVE THOUSAND, BUT INSTEAD WE KNEW HOW THIS FUNDING WAS ALIGNED WITH PROGRAMS AND SERVICES AND WHETHER OR NOT THOSE PROGRAMS ARE ALIGNED WITH KEY PRIORITY AREAS.
IT ANSWERS A LOT OF THE QUESTIONS AHEAD OF TIME AND LEAVES YOU MORE TIME FOR THE POLICY DEBATE AND THE KEY TRADE OFF DISCUSSIONS THAT YOU WANT TO HAVE.
AND WHAT YOU'RE SEEING HERE THIS IS PITTSBURGH'S DATA IS THAT THIS TWENTY FIVE THOUSAND COULD NOW BE BROKEN OUT INTO TWO SPECIFIC REQUESTS AROUND TWO DIFFERENT PROGRAMS ENVIRONMENT SUSTAINABILITY AND RESILIENCY, WITH QUARTILE ONE MEANING IN PRIORITY BASED BUDGETING VERNACULAR TREMENDOUS DEGREE OF ALIGNMENT WITH PRIORITIES AS OPPOSED TO THE FUNDING WAS REQUESTED FOR A PROGRAM THAT HAD LESS ALIGNMENT WITH PRIORITY AREAS AND THAT SHIFTED THE CONVERSATION TOWARDS DENYING THE REQUEST OVERALL.
THIS IS WHERE WE ARE EXCITED TO GO WITH THE CITY OF FLAGSTAFF BECAUSE YOUR BUDGET DEVELOPMENT REQUESTS CAN COME THROUGH THIS YEAR AT THE PROGRAM LEVEL AND WHEN THEY CAN BE EXPRESSED PROGRAMMATICALLY, WE CAN TIE IN ALL THE OTHER INFORMATION ABOUT PRIORITY BASED BUDGETING.
IS THE PROGRAM MANDATED? HOW MANDATED IS IT? IS THERE A PARTNER? WHAT ABOUT COST RECOVERY TO ONE OF THE QUESTIONS EARLIER THIS MORNING? HOW DOES THIS PROGRAM ALIGN WITH KEY PRIORITY AREAS OR NOT? AS I DEMONSTRATED EARLIER, AMONG MANY OF YOUR PRIORITIES IS YOUR SUSTAINABILITY, YOUR CARBON NEUTRALITY, AND WE'RE ACTIVELY TALKING ABOUT WAYS THAT WE CAN FLAG BUDGET REQUESTS THAT MAY HAVE AN INFLUENCE ON THIS PARTICULAR PLAN SPECIFICALLY OR YOUR OVERALL
[01:50:06]
PRIORITY AREA, AGAIN, AMONG OTHER PRIORITY AREAS THAT YOU HAVE AS WELL.IN PITTSBURGH'S CASE, THEY DID THE SAME THING AS BUDGET REQUESTS WERE BROUGHT FORWARD.
WE WERE ABLE TO TAG THE PROGRAM THAT THE BUDGET REQUEST IS IMPACTING AND EVERYTHING ELSE THAT WE KNOW ABOUT THE PROGRAM, AS WELL AS WHETHER OR NOT FROM THEIR MAYOR'S OBJECTIVE, THE REQUEST HAD ANYTHING TO DO WITH THEIR EQUITY INITIATIVES OR THEIR CLIMATE ACTION INITIATIVES.
AND THIS IS A MEMO SAYING FROM THEIR CLIMATE REVIEW OF 2022 DEPARTMENT OPERATING BUDGET REQUESTS.
WITH THE IMPLEMENTATION OF PRIORITY BASED BUDGETING, WE HAVE A CLEARER, MORE DATA DRIVEN VIEW OF OUR BUDGET THAN EVER BEFORE.
WE CAN GO DOWN AND SEE ALL OF THE TYPES OF REQUESTS THAT CAME FORWARD.
I'M SHOWING YOU THIS AS A LOOK AHEAD DOWN THE ROAD TO WHERE WE HOPE YOU WILL BE TOO AFTER THIS BUDGET PROCESS, WHEN WE CAN SEE YOUR REQUEST TIED TO PROGRAMS. HERE WE SEE SPECIFIC REQUESTS FOR CITY PLANNING, CLIMATE AND ENERGY MANAGER POSITION, THE CONTINUATION OF THE CLIMATE ADVISOR ROLE CREATED THROUGH THEIR BLOOMBERG PROGRAM.
THE POSITION ADDS A CRITICAL CAPACITY AND SO ON AND SO FORTH.
IT LOOKS SOMETHING LIKE THIS WHERE FOR EVERY PROGRAM, HERE'S THEIR ENVIRONMENT, SUSTAINABILITY AND RESILIENCY PROGRAM.
WE HAVE MULTIPLE REQUESTS THAT COME THROUGH.
HERE IS THEIR PERSONAL REQUEST FOR CLIMATE AND ENERGY MANAGER.
WHAT I'M TRYING TO SHOW YOU IS THAT IT'S NOT JUST A PERSONNEL REQUEST FOR A NEW POSITION, IT'S TIED TO A SPECIFIC PROGRAM LINKED TO THEIR CLIMATE ACTION PLAN WITH A PERSONNEL RECOMMENDATION, TO BE SURE.
AND AS BUDGET REQUESTS COME FORWARD, WE CAN LOOK AT ALL OF THE REQUESTS FOR NEW RESOURCES HERE AT OUR BUDGET REQUESTS VERSUS WHAT GETS APPROVED IN TERMS OF THEIR ALIGNMENT OR LACK THEREOF WITH THE PRIORITY AREAS IN PRIORITY BASED BUDGETING THIS BLUE REPRESENTS QUARTILE ONE, MEANING THAT THESE REQUESTS HAVE A STRONG DEGREE OF ALIGNMENT LIKE YOU JUST SAW IN THE TOOLS WITH THEIR PRIORITY AREAS.
THESE ARE BUDGET REQUESTS TIED TO QUARTILE THREE PROGRAMS. IT JUST CHANGES THE CONVERSATION AROUND WHAT QUESTIONS YOU WOULD ASK ABOUT A REQUEST FOR A PROGRAM STRONGLY LINKED TO PRIORITIES VERSUS A REQUEST TO A PROGRAM THAT PERHAPS HAS LESS TO DO WITH YOUR PRIORITY AREAS.
AND LAST BUT NOT LEAST, DRILLING INTO CLIMATE IMPACT.
SHOW ME THE REQUESTS THAT HAVE BEEN FLAGGED AND REVIEWED BACK TO COUNCIL MEMBER SHIMONI DISCUSSION.
SHOW ME THE BUDGET REQUESTS THAT HAVE AN INFLUENCE ON OUR CARBON NEUTRALITY PLAN OR ON OUR CLIMATE IMPACT GOALS OVERALL SHIFTED FROM ALL OTHER BUDGET REQUESTS.
THIS IS THE LEVEL OF INFORMATION THAT WE CAN BEGIN TO GET TO FOR BUDGET DELIBERATIONS AS AN OUTCOME OF WHAT YOU'RE ABOUT TO GET INTO HERE COMING UP.
AND I WANTED TO END THERE BECAUSE IT'S INSPIRATIONAL FOR WHERE YOU CAN GO NEXT WITH ALL OF THIS BUILDING ON WHAT YOU'VE ALREADY DONE, WHICH IS MIRACULOUS WORK IN YOUR JOURNEY TOWARDS PBB MASTERY AND COMING FULL CIRCLE TO WHERE SHANE BEGAN HIS PRESENTATION ON BUDGET ALIGNMENT WITH PRIORITY AREAS AND BEING DATA DRIVEN AND ON BEING TRANSPARENT.
WE COULDN'T BE MORE EXCITED ABOUT WE'RE HEADING IN THIS YEAR'S BUDGET DEVELOPMENT PROCESS.
WE ARE JUST ABOUT THERE, AND THE REASON IS BECAUSE I DID WANT TO LEAVE TIME FOR OBSERVATIONS, WHETHER IT'S ON THE TOOLS THAT WE SHOWED EARLIER OR IT'S ON THE BUDGET PROCESS COMING UP OR GENERAL QUESTIONS, BECAUSE PART OF MY OBJECTIVE WAS TO MAKE THIS A PBB 101 FOR GENERAL UNDERSTANDING.
I'LL STOP THERE AND JUST TURN IT BACK OVER TO YOU ALL FOR FOLLOW UP Q&A AND DISCUSSION.
THANK YOU, CHRIS, AND I JUST WANT TO SAY THAT YOUR PASSION FOR PRIORITY BASED BUDGETING COMES THROUGH IN YOUR WAY THAT YOU SPEAK ABOUT IT, SO THANK YOU SO MUCH FOR MAKING IT AN ENGAGING DISCUSSION.
AND IF WE WOULDN'T MIND, JUST AS A THANK YOU TO SHANE AND CHRIS THE CHRIS' FOR PRESENTING NOT ONLY OUR HISTORY WITH IT, BUT HOW TO USE THESE TOOLS MOVING FORWARD IF WE CAN JUST GIVE THEM A LITTLE ROUND OF APPLAUSE AS A THANK YOU THAT WE LOVELY.
[01:55:06]
SO QUESTIONS AND DISCUSSIONS, YES, COUNCIL MEMBER SHIMONI.THANK YOU KATTIE AND THANK YOU, CHRIS, SO MUCH, DEPUTY CITY MANAGER DILLE AND WE REALLY APPRECIATE ALL YOUR HARD WORK ON THIS AND [INAUDIBLE] GETTING IT TO THIS POINT.
VERY EXCITING [INAUDIBLE] THIS AND WILL CONTINUE [INAUDIBLE] YEAR 4 YEAR 3, WE'RE IN YEAR THREE THIS YEAR START THE 4TH YEAR.
QUICK QUESTIONS FOR YOU, CHRIS.
I'M NOT TOO SURE HOW THEY GET TO THE PROGRAM INSIGHTS THAT YOU SPOKE ABOUT.
THEY ARE NOT, INSIGHTS ARE NOT IN THE TOOL THAT IS OPEN TO THE PUBLIC.
IF YOU WANTED TO GET TO INSIGHTS, I THINK THAT WOULD BE A GREAT DIALOG WITH RICK AND THE BUDGET TEAM.
INSIGHTS ARE IT'S A VERY INTERESTING THOUGHT THAT COMES TO MIND ABOUT HOW THE PUBLIC REACT TO FUTURE DIRECTION AND INSIGHTS AND POSSIBILITIES WITH PROGRAMS OVERALL, BUT CERTAINLY MEANT FOR INTERNAL PLANNING FOR WHAT YOUR OPTIONS MIGHT BE FOR EACH PROGRAM.
OK, SO I'M HOPING WE'LL DIVE INTO THOSE UPCOMING BUDGET RETREAT [INAUDIBLE] MORE ONE ON ONE, SO WE CAN TALK ABOUT THAT LATER.
AND THE OTHER THING IS MY QUICK QUESTION FOR YOU, CHRIS, IS WHEN YOU LOOK AT THE SUMMARY OF THAT SLIDE THAT YOU SHOWED, THAT SHOWS OUR BUDGET SUMMARIES.
I'M JUST CURIOUS IF THERE IS ANYTHING THAT STOOD OUT FROM YOUR INSIGHTS IN LOOKING AT SO MANY DIFFERENT CITIES BUDGETS AND KNOWING OUR VALUES.
WAS THERE ANYTHING THAT STOOD OUT TO YOU? IT'S A VERY GREAT QUESTION, AND I DON'T HAVE A DEFINITIVE ANSWER, BUT I'LL GIVE YOU A COUPLE OF THINGS.
ONE OF THE REASONS I FOCUSED SO MUCH ON CARBON NEUTRALITY CLIMATE AND THAT PARTICULAR PRIORITY AREA IS BECAUSE IN OUR WORK WITH ICMA AND GOVERNMENT FINANCE OFFICERS ASSOCIATION AS WELL, THIS IS DEFINITELY EMERGING AS SOMETHING THAT NEEDS FUNDING.
AND TO SEE IT REFLECTED AS PART OF YOUR KEY COMMUNITY PRIORITY AREAS IS NOT WHERE EVERY OTHER PRIORITY BASED BUDGETING COMMUNITY IS AT.
YOU'RE AHEAD OF THE CURVE, WHEREAS FOR OTHER CITIES AND COUNTIES THROUGHOUT THE COUNTRY, THIS MIGHT BE THE FIRST TIME THAT, THERE ARE A LOT OF COMMUNITIES THAT DON'T HAVE A CLIMATE ACTION PLAN.
THERE ARE A LOT OF COMMUNITIES THAT DON'T HAVE A COMMITMENT TO CARBON NEUTRALITY, AND IT IS CERTAINLY NOT SOMETHING THAT'S REFLECTED AS ONE OF THEIR PRIORITIES.
WE'RE EXCITED TO SEE THAT REFLECTED.
YOU KNOW, DEPENDING ON WHEREVER YOUR VALUE SYSTEM COMES FROM, WE'RE EXCITED TO SEE A RESOURCE ACTS AS PART OF OUR REASON FOR BEING IS TO MAKE SURE THAT RESULTS LIKE THIS GET GET THE FUNDING THAT THEY NEED.
THAT'S ONE THING THAT IS DIFFERENTIATED.
ANOTHER AS YOU LOOK AT IF I WERE TO GO TO YOUR TOOLS, AND BACK TO THE OVERALL SUMMARY.
SO THE SUMMARY THIS LAST SECTION HERE THAT SAYS ALL PRIORITIES.
WHAT YOU'RE LOOKING AT HERE ARE PROGRAMS THAT HAVE THE HIGHEST DEGREE OF IMPACT ON EVERYTHING YOU'RE TRYING TO ACHIEVE SO THAT THAT'S WHAT WE CALL QUARTILE ONE TYPE OF PROGRAMS AND THEN IT KIND OF MARCHES DOWN TOWARDS PROGRAMS THAT HAVE THE LEAST INFLUENCE OVERALL.
FLAGSTAFF HAS FOR MANY YEARS HAD A VERY POSITIVE SPENDING ARRAY, MEANING THE MAJORITY OF YOUR BUDGET IS INVESTED IN QUARTILE ONE QUARTILE TWO.
THIS IS PRIORITY BASED BUDGETING VERNACULAR, BUT QUARTILE ONE MEANS THE PROGRAMS THAT HAVE THE GREATEST DEGREE OF INFLUENCE ON THE PRIORITIES THAT YOU'RE TRYING TO ACHIEVE.
QUARTILE TWO ALSO VERY HIGH QUARTILE THREE AND QUARTILE FOUR ARE LESS ALIGNMENT OVERALL IN AND FLAGSTAFF YOUR INITIAL MEASUREMENT AND OVER THE YEARS HAS SHOWN A DISPROPORTIONATELY HIGH INVESTMENT INTO YOUR QUARTILE ONE AN QUARTILE TWO WHICH IS GREAT NEWS IN ONE WAY BECAUSE IT'S REFLECTING, HEY, YOU ARE PUTTING YOUR MONEY TOWARDS PRIORITIES FOR THE MOST PART.
THE ONLY BAD NEWS NOT BAD IS AS IT PERTAINS TO INTERNAL RESOURCE REALLOCATION IT SUGGESTS THAT MAYBE YOU HAVE LESS OPPORTUNITY TO REALLOCATE WITHIN BECAUSE SO MUCH OF YOUR BUDGET IS ALREADY INVESTED IN HIGH PRIORITY AREAS.
[02:00:02]
THAT BEGS THE QUESTION FOR MORE PARTNERSHIP OPPORTUNITIES BECAUSE YOU CAN STILL PARTNER ON HIGH PRIORITY PROGRAMS. YOU CAN STILL ACHIEVE EFFICIENCIES ON HIGH PRIORITY PROGRAMS, BUT YOU MIGHT NOT WANT TO HAVE A SERVICE LEVEL DECREASE ON A HIGH PRIORITY PROGRAM, WHICH IS A REALLOCATION OPPORTUNITY OVERALL.SO IF I WERE IN YOUR SHOES, I WOULD SAY IF I'M LOOKING AT RESOURCE OPTIMIZATION, I'M STILL LOOKING FOR WAYS TO GET NEW RESOURCES INTO THE EQUATION HERE.
PARTNERSHIPS WOULD BE MY GAME PLAN FOR REALLOCATION.
NOT TO SAY YOU HAVE NO OPPORTUNITIES FOR LOW PRIORITY PROGRAM AREAS.
AND THEN I WOULD ALSO LOOK AT IT WAS BROUGHT UP EARLIER THE COST RECOVERY PARTNERSHIPS WHERE YOU ARE A REVENUE RECIPIENT.
THOSE ARE THE AREAS THAT I WOULD FOCUS ON AS WELL.
WE HAVE ANOTHER QUESTION HERE FROM CITY MANAGER.
JUST TO COMMENT, IF I MAY, AND I'M WONDERING IF I COULD SHARE A SCREEN, I WOULD WANT TO SHOW IT YOU KATTIE.
AND IN SHARING THIS SCREEN HERE, I WANT TO I'LL ENLARGE THIS.
THIS IS AN EXCERPT FROM THE MANAGER'S BUDGET MESSAGE THAT WENT OUT THIS YEAR AND THE GRAPHIC YOU'RE LOOKING AT COURTESY OF HEIDI DERRYBERRY, IS A DEPICTION OF WHAT YOU WERE JUST DESCRIBING, CHRIS.
SO THIS IS CURRENTLY IN THE TRANSMITTAL LETTER THAT ACCOMPANIES THIS YEAR'S BUDGET.
BUT WHAT YOU'RE SEEING IS A PIE CHART SHOWING THE ALLOCATION OF THE FOUR QUARTILES, THE BLUE AND THE ORANGE REPRESENTING QUARTILES ONE AND TWO, RESPECTIVELY, AND THEN QUARTILE THREE IN THE GRAY.
IN THE SMALL SLIVER, WHICH IS YELLOW OR GOLD, IS QUARTILE FOUR.
AND IT DOES SHOW THIS IS, BY THE WAY, IT'S PROGRAMMATIC STUFF.
THIS IS THE TWENTY ONE POINT FIVE MILLION DOLLARS ALLOCATED TOWARDS THE PROGRAMS INVENTORY.
SO THIS IS AGAIN NOT CAPITAL PROJECTS AND OTHER THINGS.
BUT IT IS A NICE DEPICTION OF WHAT YOU WERE JUST SAYING THAT THE CITY CURRENTLY ANYWAY IS SCORING PRETTY WELL IN THE FIRST TWO QUARTILES.
IF YOU ADD UP THOSE PERCENTAGES, 38 PERCENT AND 42 PERCENT, THAT'S 80 PERCENT OF THE BUDGET ON PROGRAMS ANYWAY, SEEMS TO BE IN PRETTY GOOD ALIGNMENT WITH WHERE THE PRIORITIES ARE.
SO JUST A QUICK GRAPHICAL DISPLAY OF WHAT YOU WERE JUST DESCRIBING, AND I'LL GO AHEAD END MY SHARE SCREEN NOW SO WE CAN GET BACK TO YOUR STUFF.
GREG, THANKS SO MUCH FOR SHOWING THAT THAT'S EXACTLY WHAT IT'S A PICTURE IS WORTH A THOUSAND WORDS.
SO I TALK A LOT, BUT THAT PICTURE MAKES THE POINT.
SO DO WE HAVE ANY OTHER COMMENTS OR QUESTIONS ABOUT ACCESSING THE INFORMATION? WOULD IT MEANS? PROCESSED? TODAY, I HAVE A RANDOM QUESTION.
CHRIS YOU WERE SHOWING THE MAP OF ALL THE MUNICIPALITIES, JURISDICTIONS THAT ARE USING PRIORITY BASED BUDGETING.
I WAS LOOKING HARD AT ARIZONA AND IT WAS HARD TO ASCERTAIN, ARE WE THE ONLY MUNICIPALITY IN ARIZONA OR IS THERE OTHER USERS OF THIS TOOL? GREAT QUESTION.
IN ARIZONA, YOU HAVE CITY OF SCOTTSDALE IS A MULTI-YEAR, PRIORITY BASED BUDGETING IMPLEMENTER.
CITY OF CHANDLER, ARIZONA, THE CITY OF YUMA, IS JUST UNDERWAY IN PRIORITY BASED BUDGETING.
IT HAS BEEN SINCE 2017 THAT WE HAD A SOFTWARE FOR TO SUPPORT ONGOING IMPLEMENTATIONS PRIOR TO 2017 WE WOULD AT LEAST CREATE THE DATA SET FOR COMMUNITIES TO USE, AND I BRING THAT UP BECAUSE WAY BACK WHEN THE TOWN OF QUEEN CREEK AT LEAST DEVELOPED THEIR INITIAL PRIORITY BASED BUDGETING INFORMATION.
THERE MIGHT BE A COUPLE OF OTHERS FROM THE EARLY DAYS, BUT YOUR CURRENT COLLEAGUES, TO BE SURE, ARE SCOTTSDALE, CHANDLER AND YUMA IN THE STATE.
AND WE'RE SEEING IN THE CHAT FROM MARIA, ALSO PIMA COUNTY, I THINK IS USING IT.
[02:05:01]
WELL, HEY, IF, ANYTHING, IF I EXIST FOR ANYTHING, IT'S ABOUT RESOURCE EFFICIENCY AND IF WE ARE ENDING SEVEN MINUTES EARLY AND YOU CAN REALLOCATE A LITTLE OF YOUR TIME RESOURCES BACK TO YOUR ACTION PACKED AGENDA WITH A LOT OF PRIORITIES, THEN THAT MIGHT BE THE MARK I NEED TO LEAVE.BUT I JUST WANT TO SAY THANK YOU SO MUCH, COUNCIL MEMBERS FOR HAVING ME HERE AND FOR YOUR COMMITMENT TO USING RESOURCES DIFFERENTLY.
YOUR COMMITMENT TO KEY COMMUNITY PRIORITIES WHERE WE HAVE TO MAKE SURE WE DON'T FALL SHORT OF MAKING SURE WE HAVE THE RESOURCES WE NEED TO FUND THEM.
I MEAN, RESOURCE X WE PUT OUR BET ON LOCAL GOVERNMENT BECAUSE YOU EXIST TO ACHIEVE THINGS THAT ARE INCREDIBLY IMPORTANT IN OUR COMMUNITIES AND YOU ALREADY KNOW THIS.
BUT THAT'S WHY WE'RE HERE TO HAVE STAFF FROM GREG TO SHANE, TO RICK, TO HEIDI AND CHRIS AND SO MANY OTHERS ON YOUR TEAM WHO PUT IN A LOT OF WORK TO MAKE THIS COME TO LIFE.
WE ARE THANKFUL FOR YOUR EFFORTS AND WE NEED YOU AS LOCAL GOVERNMENT LEADERS TO MAKE SURE THAT OUR COMMUNITIES GET RESOURCES TO ACHIEVE REALLY IMPORTANT PRIORITIES OVERALL.
SO THANK YOU SO MUCH AND I HOPE THAT YOU HAVE A WONDERFUL BUDGET RETREAT, AND I HOPE THAT SOMEDAY I'LL BE ABLE TO GET BACK TO FLAGSTAFF LIVE.
I'M ASKING THAT YOU COME BACK INTO THE ROOM AT 10:58 AND GIVE YOURSELF A FEW MINUTES TO SETTLE BEFORE WE START BACK.
ELEVEN O'CLOCK SHARP SO THAT THE RUSTLING OF YOUR SETTLING DOESN'T DISRUPT THOSE PEOPLE ONLINE.
THAT WOULD BE SUPER WONDERFUL.
AND THEN WE'LL GET STARTED AGAIN.
YEAH, YOU'VE EARNED YOUR BREAK.
[INAUDIBLE] WHILE, WE'RE WAITING FOR A FEW OTHER PEOPLE TO FIND THEIR WAY TO THE TABLE.
I HAVE A THOUGHT EXPERIMENT FOR YOU.
IMAGINE FOR A MOMENT THAT YOU'VE BEEN GRANTED THE OPPORTUNITY TO DO ONE OF TWO THINGS.
YOU CAN EITHER BECOME A SUPERHERO WITH A RED CAPE AND WITH THAT RED CAPE FIX ALL THE PROBLEMS OF THE COMMUNITY.
OR YOU CAN BECOME A SUPERHERO WITH A GREEN CAPE AND BUILD UPON ALL THAT'S GOING WELL.
YOU'VE BEEN GIVEN THE OPPORTUNITY TO CHOOSE BETWEEN ONE TYPE OF SUPERHERO, ONE WITH THE RED CAPE TO FIX ALL THE PROBLEMS, ONE WITH THE GREEN CAPE TO BUILD UPON ALL THAT'S GOING WELL.
WHICH CAPE DO YOU CHOOSE IF YOU'RE ONLINE? PLEASE PUT IN THE CHAT BOX, WHICH CAPE RED CAPE OR GREEN CAPE.
FOR THOSE COUNCIL MEMBERS AND MAYOR BEFORE ME.
WHAT CAPE DO YOU CHOOSE? I'LL GO WITH GREEN, BECAUSE IT'S MORE REALISTIC.
GO WITH THE GREEN CAPE, BECAUSE IT'S MORE REALISTIC.
THE MAYOR GOES WITH THE RED CAPE.
I WAS, YOU KNOW, YOU CAN CHOOSE TO BE SO BE BATMAN.
I MEAN, BATMAN IS PRETTY AWESOME.
WHAT ELSE DO YOU GUYS GOT? I WOULD DEFINITELY GO WITH THE GREEN CAP PERSONALLY JUST BECAUSE I LIKE TO BUILD UPON WHAT'S ALREADY IN PLACE.
GREEN CAPE TO BUILD UPON WHAT'S ALREADY IN PLACE.
WHAT ELSE? I'M THE GREEN CAPE AS WELL.
OK, COUNCIL MEMBER SWEET SAYS GREEN CAPE.
YOU GUYS THINK JUST BECAUSE I HAVE A DEGREE IN POSITIVE PSYCHOLOGY, YOU'RE GIVING THE RIGHT ANSWER DON'T YOU.
[LAUGHTER] YES? GUESS WHAT? THERE IS NO RIGHT ANSWER.
AND THE REALITY IS THE COMMUNITY NEEDS.
IS THAT YOU NEED A REVERSIBLE CAPE.
BECAUSE THERE'S ALWAYS GOING TO BE PROBLEMS. AND THERE'S ALWAYS GOING TO BE THINGS GOING WELL TO BUILD UPON.
SO WHAT I LOVE ABOUT THE PRIORITY BASED BUDGETING IS IT GIVES AN OPPORTUNITY TO HAVE A REVERSIBLE CAPE.
BECAUSE IT DOESN'T HAVE TO BE AN ULTIMATUM BETWEEN CHOOSING RED OR GREEN, YOU CAN CREATE A REVERSIBLE CAPE IN THIS PROCESS.
AND I AM PROUD TO BE PART OF A COMMUNITY MEMBER WITH A COMMUNITY AND A COUNCIL THAT
[02:10:05]
IS WANTING TO LEAD WITH INNOVATION AND BEING WILLING TO LEAVE THEIR ULTIMATUMS DOWN AND THINK INNOVATIVELY ABOUT HOW CAN WE CREATE A REVERSIBLE CAPE? MAYBE IT'S DEPARTMENTS.THERE'S ALL SORTS OF INNOVATIVE WAYS TO DO SO.
THANK YOU FOR THAT LITTLE THOUGHT EXPERIMENT.
NOW, WITHOUT FURTHER ADO, WE ARE GOING TO HAVE THE LOVELY HEIDI DERRYBERRY LEAD US IN THE NEXT PRESENTATION.
GOOD MORNING, MAYOR AND COUNCIL.
I AM CURRENTLY THE INTERIM FINANCE DIRECTOR HERE AT THE CITY.
AND I'M HERE THIS MORNING JUST TO KIND OF DO A LITTLE BIT OF A BUDGET KICK OFF AND REFRESH TO GET US THINKING ABOUT HOW WE NEED TO LOOK AT GOING INTO THIS NEXT BUDGET CYCLE.
AND BEFORE I DO THAT, THOUGH, I JUST WANTED TO SHARE WITH COUNCIL A LITTLE PROJECT THAT THE BUDGET TEAM HAS BEEN WORKING ON OVER THE LAST FEW MONTHS AND CURRENTLY IS STILL IN PROCESS.
AND THAT IS THE BUDGET TEAM IS CREATING A CHARTER, SO WE OFTEN GET QUESTIONS ON WHAT EXACTLY IS THE BUDGET TEAM DOING? WHAT IS THEIR PURPOSE? WHO MAKES UP THE BUDGET TEAM? WHEN DO YOU MEET? WHAT DO YOU DO? SO GREG ASKED US TO START LOOKING AT DOING A TEAM CHARTER, AND SO WE ARE CURRENTLY WORKING ON THAT.
SO I WANT TO JUST SHARE A FEW OF THE PIECES THAT WE DO HAVE DONE SOME EXAMPLES AND THEN KIND OF LET YOU HAVE A STATUS UPDATE OF WHERE WE'RE AT.
SO OUR CHARTER INCLUDES FIVE DIFFERENT SECTIONS, INCLUDING THE PURPOSE, THE COMPOSITION, OUR MEETINGS, OUR ROLES AND A CODE OF CONDUCT.
SO THE MAIN PURPOSE OF THE BUDGET TEAM IS TO PROVIDE FINANCIAL ADVISEMENT AND STRATEGIC DIRECTION TO THE CITY ORGANIZATION, AND TO PROTECT THE INTERESTS OF THE PUBLIC THROUGH SOUND FISCAL SERVICES.
UNDER THAT, WE HAVE MANY, MANY ITEMS THAT FALL WITHIN THIS PURPOSE.
I'VE JUST PROVIDED A FEW EXAMPLES OF WHAT THE BUDGET TEAM FEELS IS IMPORTANT FOR OUR PURPOSE, WHICH INCLUDES PROVIDING FISCAL OVERSIGHT AND FINANCIAL DECISION MAKING ON AN ONGOING BASIS.
WE FORECAST SHORT TERM AND LONG TERM FINANCIAL LANDSCAPES.
WE PROVIDE CONSTANT STEWARDSHIP TO ENSURE INTEGRITY, ACCOUNTABILITY, TRANSPARENCY, CREDIBILITY, ADAPTABILITY AND EXCELLENCE AND COLLABORATION.
AND WE ALSO PROACTIVELY ASSURE CITY FISCAL STABILITY THROUGH EFFECTIVE RECESSION.
AND LIKE I MENTIONED, WE HAVE A WHOLE LIST OF ITEMS THAT ARE UNDER OUR PURPOSE.
THESE ARE JUST A FEW EXAMPLES OF WHAT YOU'LL SEE.
UP ON THE SCREEN, YOU CAN SEE ALL OF THE MEMBERS THAT CURRENTLY COMPRISE THE BUDGET TEAM.
I KNOW THAT NINE OF US WERE HERE LAST YEAR, BUT THIS YEAR WE'VE ADDED A FEW NEW FACES AND A FEW NEW MEMBERS TO OUR BUDGET TEAM.
THIS YEAR, WE HAVE ADDED NICOLE ANTONOPOULOS AS THE SUSTAINABILITY DIRECTOR.
SHE'S ACTUALLY A NEW MEMBER ON THE TEAM, SO SHE IS SITTING AT THE BUDGET TABLE WITH US, REPRESENTING SUSTAINABILITY AND THE CARBON NEUTRALITY PLAN.
SO WELCOME NICOLE TO THE TEAM.
WE ALSO HAVE CHRIS RHODE, MANAGEMENT ANALYST FROM THE CITY MANAGER'S OFFICE THAT IS AN ACTUAL JOINED MEMBER ON THE TEAM.
CHRIS IS HELPING US KIND OF BECOMING OUR PBB EXPERT AND HELPING US TO LEAD THAT TRANSITION AS THE BUDGET TEAM BECOMES MORE OF THE LEADER IN THE PBB PROCESS.
AND ANOTHER NEW FACE CURRENTLY ALSO ON THE TEAM IS GLORICE THOUSAND.
SHE IS THE INTERIM ASSISTANT FINANCE MANAGER AND SHE IS A TEMPORARY MEMBER ON THE TEAM AS BRANDI AND I ARE CURRENTLY IN OUR INTERIM ROLES, SO SHE HAS FILLED ONE OF OUR EMPTY SEATS TO HELP US OUT.
SO THIS IS THE COMPOSITION OF THE TEAM GOING FORWARD, SO.
NEXT, JUST TO SHARE WITH COUNCIL, I'M SURE, YOU KNOW, WE MEET VERY FREQUENTLY AS A TEAM, BUT THE BUDGET TEAM IS CURRENTLY MEETING ON A WEEKLY BASIS ON THURSDAYS.
AS WELL AS WE HAVE SEVERAL MEETINGS THAT WE GO THROUGH THROUGHOUT THE YEAR.
SO BI-ANNUALLY WILL BE HAVING THE PRIORITY BASED BUDGET COUNCIL RETREAT.
THE BUDGET TEAM THEMSELVES, WE HAVE A BUDGET RETREAT IN OCTOBER OF EVERY YEAR TO HELP KICK OFF THE PROCESS.
AND WHAT WE'RE LOOKING IN THE DIRECTION THAT WE'RE GOING TO ASK THE CITY TO GO FOR THE YEAR, THE COUNCIL BUDGET RETREATS.
SO WE'RE SITTING IN ONE TODAY.
WE USUALLY HOLD THOSE IN DECEMBER, FEBRUARY AND APRIL.
WE ALSO HAVE DIVISION REVIEW MEETINGS, WHICH ARE HELD IN THE FEBRUARY MARCH PERIOD.
IN THE PAST, WE MET FOR TWO FULL WEEKS, AND IT NEVER SEEMED TO BE ENOUGH TIME TO THOROUGHLY GET THROUGH WHAT WE NEEDED.
SO THIS YEAR, THE BUDGET TEAM HAS DECIDED TO MEET FOR THREE WEEKS, SO THIS IS A 15 BUSINESS DAY MEETING SCHEDULE.
[02:15:03]
SO.IT'S A LOT OF TIME, BUT IT'LL HELP I BELIEVE.
AND THEN LAST, WE ALSO MEET AS NEEDED FOR RECESSIONARY AND EMERGENCY RESPONSE PURPOSES.
THROUGH THE RECESSION WE MET I DON'T KNOW UP TO FIVE OR MORE TIMES A WEEK AS THE BUDGET TEAM LOOKING AT EXPENDITURES AND WHAT WE NEEDED TO DO TO RESPOND TO THOSE REVENUES WE WERE SEEING, AS WELL AS EVEN WITH THE MUSEUM FLOOD, WE WERE MEETING ON DISCUSSING WHAT WE COULD DO TO HELP ON THAT TOO.
SO THAT'S OUR MEETING SCHEDULE.
AND THEN JUST A FEW OF THE RULES THAT WE DO IS WE ARE STRATEGIC LEADERS.
WE ASSESS SO WE ASSESS THE EXPENDITURES.
WE HAVE A BUDGETARY ROLE, WHICH IS THE OVERSIGHT OF THE FORMULATION AND CITY BUDGET.
AND THEN WE ALSO HAVE A LEADERSHIP ROLE WHERE WE'RE ENCOURAGING AND NURTURING THE DEVELOPMENT OF PRESENT FUTURE MEMBERS OF OUR TEAM.
WE'RE STILL WORKING ON OUR ROLES, SO THIS AREA WILL PROBABLY EXPAND.
AND LIKE I MENTIONED, THE STATUS IS WE ARE CURRENTLY FINISHING UP WORKING ON OUR ROLES, SO WE'RE IN PROCESS THERE AND THEN FOLLOWING THAT, WE WILL BE WORKING ON OUR CODE OF CONDUCT.
AND THEN ONCE WE ARE COMPLETELY DONE AND THE BUDGET TEAM HAS SIGNED OFF ON WHAT WE FEEL, OUR FINAL BUDGET CHARTER IS, IS WE'LL BE PROVIDING THAT TO COUNCIL SO THAT YOU'LL GET A COPY OF THAT.
SO ANY QUESTIONS, THAT'S KIND OF WHAT WE'RE WORKING ON AS OUR BUDGET CHARTER.
SO MOVING RIGHT ON INTO THE ACTUAL BUDGET PROCESS.
SO BEFORE YOU, YOU'LL SEE THIS SHOULD BE FAMILIAR.
WE SHARED THIS SLIDE LAST YEAR.
THIS IS JUST THE OVERALL BUDGET PROCESS THAT WE GO THROUGH EACH YEAR.
THE ORANGE ITEMS ARE THE COUNCIL RETREATS, SO WE'RE SITTING THE VERY BEGINNING EARLY ON IN THE BUDGET PROCESS THIS YEAR.
AND ACTUALLY, WHAT IS GOING ON RIGHT THIS MOMENT IS PROGRAM MANAGERS, EMPLOYEES, SECTION MANAGERS AND DIVISION HEADS ARE WORKING ON THEIR BUDGETS.
SO THEY'RE WORKING ON INPUTTING THEIR GRANTS, CAPITAL, ET CETERA, NEEDS INTO THE SYSTEM.
AND WE ARE BEGINNING THAT PROCESS.
THE NEXT RETREAT WE'RE GOING TO HAVE IS IN FEBRUARY, I BELIEVE KATTIE AND SEVERAL TOUCHED ON THAT TODAY IS A VERY HIGH LEVEL BUDGET RETREAT AND FEBRUARY IS WHERE WE'RE GOING TO START GETTING INTO THE DETAILS.
SO AFTER THAT, COME TO THE BUDGET TEAM REVIEW THAT I JUST MENTIONED, IT WILL BE THREE WEEKS LONG WHERE WE AS A BUDGET TEAM SIT DOWN AND WE GO THROUGH THE ENTIRE BUDGET.
OUT OF THAT PROCESS COMES THE CITY MANAGER'S PROPOSED BUDGET.
NEXT BUDGET RETREAT WITH COUNCIL IS IN APRIL, AND THAT IS WHERE WE WOULD SIT WITH THAT PROPOSED BUDGET.
AND THEN AFTER THAT, IT'S THROUGH THE NORMAL ADOPTION.
SO WE HAVE PUBLIC HEARINGS FOR PROPERTY TAX ADOPTION.
WE HAVE ADOPTION OF THE TENTATIVE BUDGET ADOPTION OF THE FINAL BUDGET AND THEN FINAL ADOPTION OF PROPERTY TAX LEVY.
AND THEN THE NEW IMPLEMENTATION OF THE BUDGET FOR THE NEXT FISCAL YEAR.
SO JUST A FEW IMPORTANT ITEMS ON THE TIMELINE COMING OUT, OBVIOUSLY TODAY WE'RE IN THE BUDGET INTRODUCTION RETREAT FEBRUARY 3RD AND 4TH, IS WHEN WE'RE SCHEDULED FOR THAT SECOND COUNCIL BUDGET RETREAT WHERE WE WILL BE COMING BACK TO YOU WITH MUCH MORE DETAILS.
AND THEN APRIL 21ST AND 22ND IS WHEN WE WILL BE BRINGING TO YOU THE CITY MANAGER'S RECOMMENDED BUDGET.
AND THEN THE 21ST OF JUNE, OR ACTUALLY THE 7TH OF JUNE IS THE TENTATIVE BUDGET ADOPTION FOLLOWED BY ON JUNE 21ST WITH THE PROPERTY TAX LEVY HEARING.
FIRST READ OF PROPERTY TAX ADOPTION AND FINAL BUDGET ADOPTION, AND THEN WRAP IT UP ON JULY 5TH WITH THE FINAL READING OF THE PROPERTY TAX ADOPTION.
I KNOW IT SEEMS LIKE A LONG WAYS AWAY, BUT THE NEXT SIX MONTHS ALWAYS SEEMS TO GO FLYING BY.
ALL RIGHT, SO ANY QUESTIONS ON TIMELINES BEFORE I GET INTO THE FINAL SECTION THAT I'M GOING TO TALK ABOUT THIS MORNING IT'S JUST A LITTLE BIT OF A REFRESHER ON THE COLOR OF MONEY.
SO BOARD COUNCIL, IT SOUNDS LIKE OUR BIG RETREATS ARE IN FEBRUARY IN TERMS OF SETTING THE BUDGET, SETTING THE TONE AND THE DIRECTION.
AND THEN WE MIGHT [INAUDIBLE] KIND OF RUN WITH IT AND CITY MANAGER COME BACK WITH HIS RECOMMENDATION TO US.
IT SOUNDS LIKE THIS IS THE INTRODUCTION, BUT THE FEBRUARY ONE IS REALLY THE HEARTY ONE WHERE WE'RE GOING TO REALLY GET INTO THINGS.
YEAH, I THINK THERE'S BEEN, I WOULDN'T DOWNPLAY EVERYTHING THAT HAPPENS IN BETWEEN.
IT'S NOT LIKE COUNCIL'S ONLY VOICE OCCURS DURING THE RETREATS.
[02:20:04]
THERE'S A LOT OF THINGS THAT ARE HAPPENING ALONG THE WAY.AND IT SEEMS ALSO LIKE IN APRIL AT THE APRIL RETREAT, EVEN THOUGH WE'RE GETTING CLOSER TO FINALITY, IF YOU LOOK BACK ON LAST APRIL AND APRIL BEFORE, THERE WERE A LOT OF THINGS THAT DID EMERGE OUT OF THOSE RETREATS THAT FOUND THEIR WAY INTO THE BUDGET.
SO NEXT IS THE COLOR OF MONEY DISCUSSION.
YOU SHOULD HAVE IN THE PACKET, WE DID INCLUDE THE FLIER THAT YOU SHOULD BE FAMILIAR WITH.
IT'S THE SAME FLIER WE'VE BEEN USING FOR SEVERAL MONTHS OR SEVERAL YEARS.
BUT JUST A BRIEF DISCUSSION, JUST TO REMIND US, AS WE GET INTO TALKING ABOUT OUR PRIORITIES AND WHERE WE MAY IN PBB, HAVE SOME MONEY JUST REMINDING US THAT THERE IS SOME LIMITATIONS ON HOW OUR MONEY CAN BE SPENT FOR DIFFERENT REASONS.
AND JUST A REMINDER, THE CITY HAS NUMEROUS REVENUE SOURCES, AND MANY OF THEM DO HAVE RESTRICTIONS ON HOW THEY COULD BE SPENT.
THE CITY HAS OVER 50 DIFFERENT FUNDS THAT WE SEGREGATE THOSE REVENUES AND EXPENSES IN TO ENSURE THAT WE COMPLY WITH THE RESTRICTIONS AND ACCOUNTING STANDARDS FOR THOSE DIFFERENT REVENUE SOURCES.
AND, FOR EXAMPLE, IN MANY INSTANCES, REVENUE FROM ONE FUND CANNOT BE USED TO PAY FOR OTHER FUND EXPENSES UNLESS THEY MEET REQUIREMENTS OF THE FUND.
SO, FOR EXAMPLE, HURF MONEY CAN'T BE SPENT BY WATER SERVICES.
SO JUST I'M GOING TO DO WALK THROUGH A QUICK REFRESH OF WHAT KINDS OF FUND TYPES WE HAVE AND SOME OF THE ITEMS THAT ARE IN.
SO WE HAVE FIVE DIFFERENT FUND TYPES.
ESSENTIALLY, WE HAVE OUR SPECIAL REVENUE FUNDS, OUR ENTERPRISE FUNDS, OUR CAPITAL PROJECT FUNDS, DEBT SERVICE FUNDS AND FINALLY OUR GENERAL FUND.
SO FIRST OF ALL, LET'S JUST TALK QUICKLY ABOUT THE SPECIAL REVENUE FUNDS.
THESE FUNDS ARE USED TO ACCOUNT FOR REVENUE DERIVED FROM SPECIFIC TAXES OR OTHER EARMARKED REVENUE SOURCES.
THEY'RE USUALLY REQUIRED BY STATUTE, CHARTER PROVISION OR ORDINANCE TO FINANCE THE PARTICULAR FUNCTION OR AN ACTIVITY.
OUR CURRENT SPECIAL REVENUE FUNDS INCLUDE THE HOUSING AND COMMUNITY SERVICES FUND, WHICH IS MAINLY GRANTS.
WE HAVE THE LIBRARY FUND, WHICH IS FUNDED BY SECONDARY PROPERTY TAX, AS WELL AS SOME GENERAL FUND MONEY THROUGH A TRANSFER.
WE HAVE THE HIGHWAY USER REVENUE FUND, WHICH IS MAINLY GASOLINE TAX.
AND THEN WE HAVE OUR TRANSPORTATION FUNDS, TRANSIT, ROAD REPAIR AND STREET SAFETY, LONE TREE OVERPASS, AS WELL AS PROP 419 TRANSPORTATION IMPROVEMENT FUND.
WE ALSO HAVE OUR BBB FUNDS BEAUTIFICATION, ECONOMIC DEVELOPMENT, TOURISM, ARTS AND SCIENCE AND RECREATION.
WE HAVE PARKFLAG AND OUR NEWEST WE HAVE OUR WATER RESOURCE AND INFRASTRUCTURE PROTECTION.
SO THOSE ARE ALL EXAMPLES OF SPECIAL REVENUE FUNDS.
AND YOU CAN SEE WHY THERE'S LIMITATIONS ON HOW THAT MONEY COULD BE SPENT.
OUR NEXT CATEGORY IS THE ENTERPRISE FUNDS.
THESE ARE THE SELF-SUPPORTING FUNDS THEY ARE SUPPOSED TO BE SUPPORTING THEMSELVES THROUGH USER FEES.
SO THERE MAY BE USER FEE ORDINANCE THAT RESTRICTS THE USE.
THERE'S WATER WASTE WATER TRASH CHARGES, RENT, AIRPORT LEASES AND FEES, ETC..
THESE FUNDS INCLUDE WATER, WASTEWATER, RECLAIMED WATER, STORMWATER, SOLID WASTE, SUSTAINABILITY, ENVIRONMENTAL MANAGEMENT AIRPORT AND THE FLAGSTAFF HOUSING AUTHORITY.
WE ALSO HAVE CAPITAL PROJECT FUNDS.
SO CAPITAL PROJECT FUNDS ARE USED TO ACCOUNT FOR MAJOR CAPITAL ACQUISITIONS OR PROJECTS SEPARATE FROM ONGOING OPERATIONS.
AND USUALLY THESE ARE RESTRICTED FUNDING SOURCES SUCH AS VOTER APPROVED BONDS, GRANTS, THIRD PARTY RESTRICTED FEES, ETC..
AND WE CURRENTLY HAVE GO BOND PROJECT FUNDS, WHICH INCLUDE THE FUTS AND OPEN SPACE LAND ACQUISITION.
WE HAVE A CORE FACILITY WHICH IS WRAPPING UP.
I BELIEVE THE SWEEPER EXPANSION WAS THE LAST PROJECT IN THAT FUND.
WE STILL HAVE SOME MONEY LEFT IN THE WATERSHED PROTECTION FUND, WHICH IS THE FWPP BOND MONEY.
WE STILL HAVE THE USGS CAMPUS EXPANSION, WHICH IS TRACKED IN A SEPARATE FUND, AS WELL AS THE COURTHOUSE, WHICH IS ALSO WRAPPING UP.
ANOTHER TYPE OF FUND, WE HAVE OUR DEBT SERVICE FUND, SO DEBT SERVICE FUNDS ARE JUST FOR THAT.
THEY'RE USED TO ACCOUNT FOR THE ACCUMULATION OF RESOURCES AND THE PAYMENT OF OUR LONG TERM DEBT.
WE CURRENTLY HAVE GO BOND FUND, WHICH IS OUR SECONDARY PROPERTY TAX FUND, IT IS USED TO PAY FOR THE DEBT SERVICE ON THOSE BOND ISSUES.
AND WE HAVE THE PENSION BOND FUND, WHICH CURRENTLY IS FUNDED BY THE GENERAL FUND.
[02:25:03]
THE WATER INFRASTRUCTURE AND PROTECTION FUND.AND THE AIRPORT FUND THROUGH TRANSFERS, SINCE THOSE ARE THE FUNDS THAT HAVE POLICE AND FIRE PERSONNEL.
AND LAST BUT NOT LEAST, THERE'S THE GENERAL FUND WHICH ACCOUNTS FOR ALL REVENUES AND EXPENSES USED TO FINANCE THE OPERATIONS OF THE CITY AND THE TRADITIONAL SERVICES OF THE GOVERNMENT.
AND IN OTHER WORDS, IT'S EVERYTHING ELSE THAT I DIDN'T CAPTURE IN THOSE PREVIOUS SLIDES.
SO JUST WANTED TO GIVE EVERYONE THAT REFRESHER.
AND THEN GENERAL FUND JUST EXAMPLES OF WHAT WE HAVE IN HERE FOR REVENUES, OUR CITY SALES TAX, FRANCHISE TAX, PRIMARY PROPERTY TAX, STATE REVENUES, LICENSES AND PERMITS, FINES AND FORFEITURES AND CHARGES FOR SERVICES.
AND THAT IS ALL I HAVE FOR THAT REFRESHER.
YES, THIS IS SOMEWHAT PERIPHERAL, BUT CAN YOU REMIND US WHEN WE NEXT REVISIT THE [INAUDIBLE] TAX? WELL, I CAN'T REMEMBER.
I THINK WE'RE LOOKING AT [INAUDIBLE] ELECTION [INAUDIBLE].
WE WANT TO GET AHEAD OF IT SO 2024 I THINK IS THE FIRST TIME WE'LL PUT IT ON ELECTION.
OH OK, THAT'S SUBSTANTIALLY [INAUDIBLE].
2024 IS WHEN WE GO TO ELECTION FOR 2028 EXPIRATION.
CAN I ASK YOU A QUESTION [INAUDIBLE] YOU MENTIONED THE VEHICLE TAX THAT'S FOR LICENSE PLATES, FOR CARS OR WHATEVER.
I ASSUME THAT WENT INTO HERS, BUT IT DOESN'T.
IT GOES INTO THE GENERAL FUND, THE VEHICLE TAX, THE GAS TAX.
ANY OTHER QUESTIONS FROM COUNCIL MEMBERS? ALL RIGHT.
WELL, NOW THAT WE'VE HAD A REFRESH ON THAT.
THANK YOU, RICK, FOR GIVING THIS PRESENTATION ON REVENUE UPDATES.
VICE MAYOR, CITY COUNCIL, WE'RE GOING TO GIVE YOU A REALLY HIGH LEVEL UPDATE ON WHERE OUR REVENUES ARE AT KIND OF GIVE YOU A RECAP OF WHERE WE ENDED THE YEAR AS WELL AS WHERE WE'RE AT IN THE CURRENT YEAR, THE PROJECTIONS AND AS WE MOVE FORWARD, YOU'LL SEE MORE OF THAT IN THE FEBRUARY RETREAT TO SEE WHAT KIND OF RESOURCES WE HAVE.
WHEN WE HAVE CONVERSATIONS, WE GET MORE DETAIL AT THAT RETREAT.
SO TODAY'S KIND OF A RECAP OF WHERE WE STAND AND WHAT WE PREDICT FOR THIS YEAR.
THERE'S ALWAYS ECONOMIC CONSIDERATIONS WE WE WANT TO CONSIDER WHEN WE'RE BUILDING BUDGETS, TALKING ABOUT REVENUES AND LOOKING AT PROJECTIONS, BUT THE FIRST THING IS MORE RECENTLY, RECESSIONS HAPPEN.
WE'VE SEEN THEM IN THE LAST, IN OUR LIFETIME.
THROUGHOUT HISTORY, THERE'S ALWAYS RECESSIONS, CORRECTION PERIODS THAT OCCUR IN OUR ENVIRONMENT AND OUR ECONOMY NATIONWIDE AND LOCALLY.
SO IT'S REALLY IMPORTANT TO ASSURE THAT WHEN YOU'RE FORECASTING AND LOOKING AT DELEGATING REVENUES, YOU WANT TO BE READY FOR THOSE TYPES OF CORRECTIONS OUR MARKETS WILL HELP AND OUR REVENUES MAY HAVE IN DOWNTURNS.
BUT TO THE CONTRARY, GROWTH HAPPENS.
ALSO, YOU'LL SEE IN THIS THIS PRESENTATION THAT REVENUES ARE GROWING.
WE'RE COMING OUT OF THE SHORT RECESSION THAT IT WAS AND WE'RE DOING VERY WELL.
SO GROWTH IS ALSO A GOOD PART OF WHEN WE'RE PLANNING OUR BUDGETS TO NOTE THE THE MOST RECENT RECESSION WAS THAT COVID 19 RECESSION, AND IT ONLY LASTED TWO MONTHS.
KIND OF SURPRISING IT WAS HERE AND FROM A TERMINOLOGY OF RECESSION, IT WAS GONE.
BUT BECAUSE THAT'S MORE OF A GLOBAL LOOK AT MULTIPLE FACETS OF AN ECONOMY YOUR LABOR, YOUR REVENUES, YOUR GDP AND THAT.
SO THAT WAS DETERMINED REALLY FOR THE MONTHS OF APRIL AND MAY OF THIS YEAR WHEN WE HAD THE [INAUDIBLE] OF 2020 WHEN WE HAD A RECESSION.
SOMETHING ALSO THAT MAKES THIS TYPE OF RECESSION LAST A LITTLE SHORTER THAN WHAT WE'VE SEEN IN THE PAST IS THOSE MONETARY POLICIES THAT OUR GOVERNMENT MAY PUT IN AND THE STIMULUS FUNDING THAT WE PUT INTO THE THE FEDERAL GOVERNMENT PUT INTO OUR COMMUNITY AND SO FORTH.
SO I THINK THAT REALLY BUILD US OUT TOOK US OUT OF THE RECESSION BECAUSE
[02:30:05]
PEOPLE'S INCOMES WERE WERE BEING SUPPLEMENTED AND THE FEDERAL POLICY HELPED US SHORTEN THAT LEG.IN GENERAL, RECESSIONS LAST ABOUT A 15 MONTH PERIOD.
SO COMPARE THAT TO WHAT A NORMAL RECESSION WOULD HAVE BEEN.
WE WE WERE FORTUNATE THAT IT WAS A SHORT TERM IN THIS LAST RECESSION PERIOD.
WE'LL TALK A LITTLE BIT MORE ABOUT THE GREAT RECESSION.
UM, BUT THEN EXPANSION HAPPENS, YOU KNOW, GENERALLY YOU SEE YOU COME OUT OF A RECESSION, YOU'RE APPEARING, YOU SEE A MULTIPLE YEARS OF GROWTH AND EXPANSION.
AND GENERALLY, THOSE HAVE LASTED ABOUT EIGHT YEARS IN GROWTH AND SO FORTH.
THE LAST RECESSION, WE'VE HAD AN EVEN LONGER PERIOD OF GROWTH SINCE THE GREAT RECESSION, SO WE DO EXPECT MULTIPLE YEARS OF GROWTH POST RECESSIONARY PERIODS.
THE CITY OF FLAGSTAFF, IT WAS INTERESTING THAT WE ACTUALLY SAW DECLINE STARTING BACK IN 2018-2019 IN OUR SALES TAX REVENUES, WE ACTUALLY WE'RE LOOKING AT IT LIKE, WELL, YOU KNOW, WHAT'S GOING ON THERE SLOWING DOWN IN OUR COMMUNITY AND THEN IN 2019-2020 IS WHEN WE ACTUALLY HIT THE RECESSION.
SO WE WERE WE WERE ACTUALLY SEEING TRENDS IN DOWNTURNS PRIOR TO THE LATEST PANDEMIC IN THE LATEST RECESSION.
AND WE ACTUALLY HAD IN OUR FINANCIAL MODEL A DOWNTURN IN FY 21-22.
SO WE WERE REALLY CLOSE AS TO WHERE WE WERE PROJECTING SOME CORRECTION IN OUR ECONOMY, BUT THAT HELPS US BE MORE STABLE WHEN THOSE RECESSIONS HIT.
THE LONG TERM FORECASTING WE DEFINITELY WANT TO BUILD IN THESE RECESSIONARY PERIODS, MAKE SURE THAT WE'RE NOT OVER COMMITTING OUR ONGOING RESOURCES, THAT THEY'RE ACHIEVABLE.
OUR REVENUE PROJECTIONS, WE WANT TO MAKE SURE THOSE ARE ACHIEVABLE IN THE LONG RANGE AND THAT LIMITS THE IMPACTS DURING A DOWNTURN.
FOR THIS NEXT FIVE YEAR PLAN, TEN YEAR PLANS AS WE COME OUT AND TALK TO COUNCIL IN FEBRUARY, I'M TRYING TO FIGURE OUT WHERE DO WE PUT THAT, THAT NEXT RECESSIONARY PERIOD.
I'VE HEARD SOME ECONOMISTS SAY IT MAY BE A LITTLE SOONER THAN LATER BECAUSE THIS WAS NOT A TERRIBLE IMPACT TO OUR ECONOMY, AND SOME SAY SAYING NO, WE'VE GOT FIVE SEVEN YEARS OF GROWTH AHEAD OF US.
THEY DON'T, SO DON'T SEE THE CONCERN YET.
SO WE'LL THINK ABOUT THAT AND WE'LL BUILD OUR FIVE YEAR PLANS WITH THOSE TYPES OF ADJUSTMENTS IN IT AS WE GO FORWARD.
OTHER ECONOMIC CONSIDERATIONS.
I'M NOT AN ECONOMIST, BUT I DO LISTEN TO THEM AND I'D LIKE TO HEAR WHAT THEY'RE THINKING IN THE FUTURE OF OUR COMMUNITY, OUR STATES AND THE UNITED STATES.
SO I WAS FORTUNATE TO LISTEN IN TO THE UNIVERSITY OF ARIZONA ELLER COLLEGE OF MANAGEMENT.
THEY DO AN ECONOMIC UPDATE ANNUALLY, SO I LISTENED TO THAT LAST WEEK, THIS WEEK AND GOT SOME IDEAS OF OTHER CONCERNS THAT THEY'RE LOOKING AT.
WHILE THEY DO SEE, YEAH, WE'RE GOING TO HAVE SOME GROWTH PERIODS.
THERE ARE STILL SOME LINGERING CONCERNS.
A LOT OF THEM, WE'RE AWARE OF THEM AS A COMMUNITY ALSO.
UM, SO JUST THE LIST OF THE THINGS.
OCTOBER 19, THE PANDEMIC IS STILL HERE, A NEW VARIANT HAS COME UP.
WE'RE GOING TO KEEP SEEING CHANGES FOR THAT OVER THE NEXT WHO KNOWS HOW LONG.
THE SUPPLY CHAIN? YOU'VE HEARD THAT DISCUSSION NATIONWIDE.
THERE'S A SUPPLY CHAIN ISSUE GETTING GOODS OUT TO COMMUNITIES.
THEY FEEL THAT THAT IS TURNING THE TABLE AND GETTING BETTER IN PROBABLY THE FIRST QUARTER OF NEXT CALENDAR YEAR.
THE SUPPLY CHAIN WILL HAVE A LOT OF CORRECTION IN AND THINGS BE MOVING MUCH BETTER.
THE LABOR MARKET IS ONE THAT WE'RE ALL AWARE OF.
HIRING STAFF, GETTING PEOPLE EMPLOYED AND SO FORTH.
THIS WAS AN INTERESTING ONE THAT THEY THEY BROUGHT UP DURING A CONVERSATION.
THERE, STUDIES SHOW ABOUT $4 MILLION, $4 MILLION, FOUR MILLION PEOPLE LESS IN OUR LABOR POOL THAN PRE-RECESSION.
BUT THERE'S MULTIPLE FACTORS THAT ARE BALANCING THIS, WHY WE CAN'T GET PEOPLE HIRED AND AND AND SO FORTH.
THERE WERE THEY WERE ESTIMATING ABOUT TWO MILLION AND HALF OF THAT POPULATION DECIDED IT'S TIME TO RETIRE.
YOU KNOW, THE BABY BOOMERS AND SO FORTH, YOU KNOW, PROBABLY JUST SAID, WELL, THIS IS MY TIME, THEIR CHOICE WILL COUNT.
TWO MILLION PEOPLE ARE OUT OF LABOR MARKET FROM THAT DECISION.
IT MAY BE EARLIER THAN THEY EXPECTED.
[02:35:01]
YOU KNOW, SO THAT'S ONE OF THE IMPACTS.AND THE OTHER IS THE OTHER SIDE OF IT IS FOR MULTIPLE REASONS SUCH AS, YOU KNOW, PEOPLE ARE NOT COMFORTABLE GETTING BACK IN THE LABOR MARKET.
THEY MAY HAVE HAD FAMILY CHANGES THAT OCCURRED OVER THIS LAST TIME, BUT COVID IS ONE OF THOSE UNDERLYING FACTORS OF MAYBE HAVING PEOPLE NOT READY TO GO OUT, WORK IN AN ENVIRONMENT AND IN THEIR COMMUNITY.
SO THOSE ARE SOME OF THE FACTORS THAT THEY BROUGHT UP DURING THAT WEBINAR.
ENERGY PRICES, I THINK WE'RE SEEING THOSE ENERGY PRICES AT THE PUMPS.
WE EXPECT NATURAL GAS AND THOSE TO START INCREASING IN OUR COMMUNITY.
SO THAT'LL BE AN IMPACT ON WHERE THAT GOES FROM HERE.
AND ALSO, YOU KNOW, THE TREASURY IS LOOKING AT INTEREST RATE INCREASES OVER THE NEXT CALENDAR YEAR.
MAYBE A COUPLE INCREASES THAT WE'LL SEE IN THE HOUSING MARKET.
HOUSING PRICES GAINING AND GROWING AND AND SELLING.
THEY THEY THINK THE, YOU KNOW, WITH ALL THAT ACTIVITY WE HAVE THIS SUMMER, THE INVENTORY IS GOING TO SHRINK.
IF WE DON'T KEEP UP WITH BUILDING, INVENTORY IS GOING TO SHRINK AND THE COST OF BUILDING IS HIGHER THAN IT HAS BEEN IN THE PAST.
SO THOSE ARE SOME OF THE STILL ECONOMIC CONCERNS THAT THE ELLER COLLEGE WAS WAS BRINGING UP AT THEIR.
OH, WEBINAR, SO JUST WANTED TO SHARE THOSE THOUGHTS WITH YOU.
THIS SLIDE KIND OF GIVES YOU A LONGER RANGE ABOUT 20 YEAR VIEW OF OUR GENERAL FUND SALES TAX REVENUES OVER CERTAIN PERIOD OF TIME AND IT'S THE LET ME GO THROUGH KIND OF ORANGE LINE REPRESENTS THE PERCENT CHANGE IN REVENUE GROWTH YEAR OVER YEAR, SO YOU CAN SEE THAT KIND OF JUMPS UP AND DOWN QUITE A BIT OVER THE LAST 20 YEARS.
THE BLUE LINE IS OUR REVENUE COLLECTIONS GOING FROM ABOUT 20 MILLION IN THE FISCAL YEAR 99 2000 AND PROJECTING TO BE ABOUT OVER 25 MILLION THIS CURRENT FISCAL YEAR.
AND THAT WAS A LITTLE SMOOTHER, BUT YOU DO SEE THE EBBS AND FLOWS DURING EVENTS THAT OCCUR.
AND THEN WE'VE HIGHLIGHTED SOME EVENTS THAT OCCURRED NATIONWIDE FROM THE DOT COM ISSUES, THE 911, THE BIG ONE IN THE MIDDLE, THE GREAT RECESSION, THINK OF VIRUS AND THEN THE RECENT COVID RECESSION, WHICH IS THE SMALLEST.
SLICE OF THOSE EVENTS THAT OCCURRED.
YOU KNOW, AS YOU LOOK AT THE REVENUE GROWTH ON THIS CHART, IT'S REALLY INTERESTING THAT WE ONLY SEE 4 OF THE 20 YEARS AS NEGATIVE REVENUES WRITE NEGATIVE REVENUE GROWTH.
THE BIGGEST ONE WAS THE GREAT RECESSION THAT WAS A HUGE IMPACT, IT WAS A MULTI-YEAR IMPACT THAT WE SAW, BUT GENERALLY WE'RE PRETTY STRONG AS A COMMUNITY ORGANIZATION AND WE WEATHER A LITTLE BIT BETTER.
BUT WE ALSO WANT TO BE AWARE AND BE PREPARED FOR SOME TYPES OF CORRECTIONS IN THE FUTURE.
THE GREAT RECESSION LASTED ABOUT 18 MONTHS, AND IT TOOK FIVE YEARS TO RECOVER.
IT WAS IT TOOK A TIME TILL WE GOT TO THE SAME LEVEL OF REVENUES THAT WE SAW PRE GREAT RECESSION.
THAT'S KIND OF THE INTENTION OF OUR RECESSION PLAN IS TO BE ABLE TO MANAGE OVER THOSE LONGER PERIODS.
WE WERE FORTUNATE THIS YEAR, BUT WE WANT TO MAKE SURE WE'RE POSITIONING OURSELVES WITH THE RIGHT PLANS AND THE RIGHT TOOLS TO MITIGATE THOSE TYPES OF CHANGES.
YES, IT TOOK OVER FIVE YEARS TO RECOVER FROM THAT.
IT'S AN INTERESTING FACT YOU COULD SEE THE PERCENTAGE OF REVENUES AND THE REVENUES DIP IN 2018-2019, A THREE PERCENT DIP IN OUR SALES TAX REVENUES.
AND WE RECOGNIZE THAT WE STARTED BUDGETING A LITTLE BIT DIFFERENTLY.
BUT THE YEAR THAT COVID HIT, EVEN THOUGH WE HAD A LARGE IMPACT ON THAT LAST QUARTER OF THAT FISCAL YEAR, OVERALL, WE HAVE SOME GAIN IN REVENUES.
IT'S INTERESTING THAT WE WERE ABLE TO REBOUND IT.
STILL, I THINK THE FIRST THREE QUARTERS OF THE YEAR WERE JUST OUTSTANDING LEADING UP TO THE PANDEMIC AND THEN IT SHUT DOWN AND WE DID WELL FOR THAT YEAR.
[02:40:05]
BUT FORGIVE ME IF YOU'RE HEADING HERE, BUT.THE RECREATIONAL MARIJUANA TAX IS [INAUDIBLE].
RECREATIONAL MARIJUANA TAXES, THERE'S AN EXCISE TAX THAT'S DISTRIBUTED TO CITIES AND TOWNS WITH PUBLIC SAFETY PERSONNEL AND THAT GOES TO THE GENERAL FUND.
THERE IS ALSO A PORTION THAT GOES INTO THE HIGHWAY USER REVENUE FUND.
AND THEN THE THIRD COMPONENT IS IT'S A TAXABLE RETAIL GOOD.
SO IT'S WITHIN OUR RETAIL SALES REVENUES THAT WE'RE SEEING ON THAT ONE PERCENT AND THIS WILL BE OUR FIRST FULL BUDGET CYCLE WHERE WE'VE GOT 12 MONTHS OF THAT COMING UP.
STARTED IN JANUARY OF 2021 THIS YEAR, AND SO WE SAW A FEW MONTHS OF LAST FISCAL YEAR, BUT YEAH, THIS WILL BE THE FULL CYCLE.
I DON'T HAVE THOSE NUMBERS TODAY, BUT I COULD DEFINITELY BRING THOSE TO YOU IN FEBRUARY.
AS FAR AS WHAT TYPES OF REVENUES WE'RE LOOKING FROM THOSE.
[INAUDIBLE] I FEEL LIKE WE DID HAVE A QUESTION IN THE CHAT.
COULD YOU DISTINGUISH AGAIN BETWEEN THE RED LINE OR, SORRY, THE ORANGE LINE IN THE BLUE LINE? JUST WHAT THEY REPRESENT? SURE, ABSOLUTELY.
SORRY, I DIDN'T HAVE A HEADER ON THIS FOR THE PURPOSE OF THE LINES.
THE ORANGISH LINE REPRESENTS THE PERCENTAGE CHANGE YEAR OVER YEAR OF SALES TAX REVENUES.
THE BLUE LINE REPRESENTS THE ACTUAL REVENUE COLLECTIONS ON GENERAL SALES TAX YEAR OVER YEAR EACH YEAR.
SO HOPEFULLY THAT EXPLAINS THAT FURTHER FOR YOU.
SO IN, YOU KNOW, HERE FROM THE ELLER COLLEGE OF MANAGEMENT, THEY'VE ALSO PROVIDE FORECASTS STATEWIDE FORECASTS, THERE'S ALSO THE JOINT LEGISLATIVE BUDGET COMMITTEE THAT DOES FORECASTING FOR THE STATE LEGISLATURES.
AND SO I KIND OF LOOK AT THOSE TO SEE WHERE THEY'RE LOOKING AT LONGER RANGE ALSO.
THIS IS A SNAPSHOT FROM THE ELLER COLLEGE.
AND HERE YOU CAN SEE, YOU KNOW, LOOK AT 20.
THESE ARE CALENDAR YEAR BASIS.
SO A LITTLE DIFFERENT THAN WE LOOK AT A FISCAL YEAR BASIS, BUT YOU CAN SEE 2020 AND 2021 CALENDAR YEARS.
WE'VE WE'VE SEEN SOME GOOD GROWTH.
EVEN THOUGH THE PANDEMIC IS IN OUR COMMUNITIES, WE'RE STILL SEEING GROWTH FROM A PERSONAL INCOME LEVEL EIGHT OVER EIGHT PERCENT INCOME GROWTH OVER THE LAST TWO YEARS.
BUT OF COURSE, WE ALL KNOW A LOT OF THAT COULD BE CONTRIBUTED TO FEDERAL SUBSIDIES, SUBSIDIES THROUGH DIRECT PAYMENTS, AS WELL AS SUBSIDIES THROUGH UNEMPLOYMENT INSURANCE THAT WERE PUSHED INTO OUR ECONOMIES OVER THE LAST YEAR, BUT REALLY GOOD GROWTH OF PERSONAL INCOME.
AND WHAT THEY'RE SEEING NOW IS 2022 IS IS REALLY IT'S GOING TO SLOW DOWN BECAUSE WE DON'T WE'RE NOT SEEING THE GOVERNMENT LOOKING TO PUSH ANY ADDITIONAL FUNDING DIRECTLY IN THE POCKETS OR UNEMPLOYMENT.
AND SO THEY'RE REALLY LOOKING AT, OK, THAT MONEY'S NOT AVAILABLE AND GROWTH IS GOING TO SLOW DOWN A BIT.
STILL GROWTH, WHICH IS POSITIVE.
WE LIKE GROWTH, BUT DEFINITELY A SLOWDOWN OF LESS THAN THREE PERCENT.
BUT AFTER WE HAVE THIS CORRECTION, THEY'RE LOOKING AT ABOUT FIVE PERCENT PER YEAR IN INCOME GROWTH FOR OUR STATE.
THIS ONE IS JUST KIND OF STARTLES ME SOMETIMES AS FAR AS HOW WELL RETAIL SALES ARE GOING IN OUR STATE AND COMMUNITY.
IN 2020 OVER SIX PERCENT GROWTH AND THEN 2021, THEY'RE PROJECTING ABOUT FIFTEEN PERCENT GROWTH IN RETAIL SALES, WHICH THEN IN TURN LOOKS INTO OUR OUR REVENUES, OUR SALES TAX REVENUES.
BUT THEY THEY ARE SEEING A SLOWDOWN.
THEY ARE PROJECTING AGAIN, JUST LIKE INCOME TAXES.
THE CASH FLOW IS NOT THERE THIS COMING CALENDAR YEAR, AND WE EXPECT A SLOWDOWN TO A STILL GOOD GROWTH, BUT KIND OF SLOW GROWTH OF JUST OVER TWO PERCENT.
AND THEN ABOUT FOUR PERCENT GROWTH GOING OUTWARD.
THE GROWTH NUMBERS ARE ARE FAIRLY CLOSE TO WHAT THE JOINT LEGISLATIVE BUDGET COMMITTEE IS SAYING IN THE GROWTH YEAR.
SO WE KIND OF LOOK AT THIS AND WE KIND OF, YOU KNOW.
WHAT THEY LOOK AT, THE STATEWIDE IS NOT ALWAYS WHAT'S FLAGSTAFF ISSUES, AND WE KIND OF MONITOR OUR READINESS IN LINE WITH HOW THEY SAY THE GROWTH AND WE'LL PROJECT
[02:45:02]
THESE WHEN WE GET TO FEBRUARY, WHAT WE FEEL IS REASONABLE GROWTH FOR FLAGSTAFF.[INAUDIBLE] SO, YES, SO I OBSERVED THAT THE ANTICIPATED GROWTH NUMBERS LIKE NEXT YEAR ARE PROBABLY LOWER THAN THE ANTICIPATED INFLATION NUMBERS NEXT YEAR.
SO IN REAL BUYING POWER, IT'S ACTUALLY DIMINISHED.
ARE YOU AN ECONOMIC INDIVIDUAL? OH, YEAH.
AS FAR AS INFLATION OCCURS, COST OF GOODS ARE MORE.
SO I GUESS MY ONLY POINT IS THAT IT MAY NOT BE AS GOOD AS IT SEEMS. RIGHT, THANK YOU.
WOW, WHAT A DIFFERENCE A YEAR MAKES.
YOU KNOW, THE LAST TWO YEARS WE WERE CONCERNED AND VERY CONSERVATIVE OF WHERE WE WERE LOOKING AT OUR PROJECTIONS AND THE ACTUAL REVENUES THAT CAME INTO OUR COMMUNITY.
AND HERE'S KIND OF A THREE YEAR PICTURE OF WHERE WE'RE AT FROM BUDGET TO ACTUAL.
FOR THE LAST THREE YEARS, STARTING ON THE ON THE LEFT HAND SIDE ARE THE DIFFERENT COMPONENTS OR CATEGORIES OF OUR SALES TAXES THAT WE HAVE IN OUR COMMUNITY.
IN 20, THE FIRST TWO COLUMNS IS THE FISCAL YEAR 2019-2020.
THIS IS THE YEAR WHERE THE PANDEMIC FIRST HIT, AND WE SAW THAT THIRD QUARTER IMPACTS.
OUR HOTEL REVENUES DECLINED SIXTY TWO PERCENT.
HOTEL MOTELS SHORT TERM GROWTH SIXTY TWO PERCENT IN THAT ONE QUARTER LAST QUARTER OF FISCAL YEAR 2019-2020.
RESTAURANTS DECLINED THIRTY ONE PERCENT.
PERSONAL PROPERTY RENTALS, YOUR RENTAL CARS AND RENTAL EQUIPMENT DECLINED TWENTY TWO PERCENT.
THAT IS WHERE WE SAW THE MAJOR IMPACTS TO OUR SALES TAX REVENUES IN OUR ACTUAL NUMBERS THAT THAT FISCAL YEAR.
MOVING FORWARD TO FISCAL YEAR 2020-21 IT'S BEEN A GREAT GROWTH.
THE NUMBERS THAT YOU'RE SEEING ARE A COMPARISON TO BUDGET AT THE BOTTOM ALMOST $4 MILLION OVER WHAT WE BUDGETED DURING THAT FISCAL YEAR.
NOW, WHEN WE WERE GOING THROUGH A YEAR AND ESTIMATES LAST YEAR, WE DID HAVE A LITTLE HIGHER NUMBER OF OUR YEAR END ESTIMATES.
BUT BUT YOU CAN SEE HOW OUR CITY SALES TAXES REBOUNDED VERY WELL IN THAT PERIOD.
TWO AND A HALF MILLION OF THIS GROWTH IS IN THAT RETAIL SECTOR.
YOU CAN SEE THE BIG JUMPS IN THE RETAIL CATEGORY, AS WELL AS THE MARKETPLACE, WHICH WAS A NEW NEWER REVENUE THAT WERE COLLECTING ON MORE RECENTLY.
THAT'S WHERE WE SAW THE BIGGEST JUMP, AS WELL AS CONTRACTING TAXES AND IN USE TAXES IN THAT FISCAL YEAR.
HOTELS, MOTELS, SHORT TERM RENTALS AND RESTAURANTS.
THEY STARTED TO SEE A GOOD REBOUND IN THAT THAT FISCAL YEAR, BUT THEY FELL SHORT OF WHAT WE PROJECTED IN BUDGET, PRE-RECESSION PROJECTIONS AND BUDGETS.
BUT THEY DID REBOUND STRONG PRETTY WELL OVER THIS TIME.
SO THEN GOING ON TO THE CURRENT YEAR, THIS YEAR 21-22, WE'VE GOT NUMBERS THROUGH.
THESE ARE NUMBERS THROUGH OCTOBER AND THE MORE PROJECTING FORWARD ON ON THESE NUMBERS AT THIS TIME.
HERE WE'RE SEEING CONTINUED GROWTH IN OUR GENERAL SALES TAX.
THE BIGGEST GROWTHS ARE IN OUR RESTAURANTS AND BARS AND HOTELS, MOTELS AND SHORT TERM RENTALS.
NOT SURPRISINGLY, THEY WERE A LITTLE LOW AND NOW THEY'RE REALLY GETTING THROUGH THEIR REBOUND.
ABOUT TWENTY NINE PERCENT YEAR OVER DATE VERSUS PRIOR YEAR TO DATE.
SO IT'S BEEN A VERY GOOD FOUR MONTHS THAT WE'VE HAD THIS FISCAL YEAR IN THOSE CATEGORIES.
HOWEVER, THE RETAIL SECTOR HAS BEEN SHOWING A LITTLE BIT SLOWDOWN, NOT AS STRONG AS IT WAS THE LAST FEW YEARS, BUT STILL DOING VERY WELL AND ABOVE BUDGET IN OUR
[02:50:03]
PROJECTIONS.BUT WE ARE SEEING IN THE LAST COUPLE OF MONTHS A LITTLE BIT OF SLOWDOWN.
IT'LL BE INTERESTING TO SEE WHAT THIS HOLIDAY MARKET AND REVENUES BROUGHT IN IN OUR COMMUNITY, AND THAT'LL HELP US WITH THE FEBRUARY CONVERSATION AND MOVING FORWARD TO SEE WHERE THAT THAT NEEDLE MOVES.
COMMERCIAL RENTALS ARE DOWN COMMERCIAL SPACE RENTAL USE TAX RENTALS DECLINE THIS FIRST QUARTER BY FIFTEEN PERCENT YEAR OVER YEAR OVER YEAR.
BUT OVERALL, WE'RE PROJECTING PRETTY FLAT IN OUR ACTUAL FROM 2021 WHAT WE'RE PROJECTING IN OUR ESTIMATES AT THIS TIME.
WE'RE REALLY CLOSE AS FAR AS THE NUMBERS, BUT BUT DEFINITELY SOME INCREASED FUNDING IN OUR GENERAL FUND AND RESOURCES WE'LL HAVE FOR THE NEXT BUDGET CYCLE.
AND LIKE I SAID, WE'LL BE LOOKING AT THOSE LONG RANGE FORECASTS FOR THAT FEBRUARY RETREAT.
THE NEXT GROUP [INAUDIBLE] THE GENERAL FUND SALES TAX MAKES UP ABOUT A THIRD OF OUR GENERAL FUND REVENUES.
THE NEXT THIRD IS OUR STATE SHARED REVENUES.
REVENUES THAT ARE COLLECTED THROUGH THE STATE AND DISTRIBUTED TO THE CITY BASED ON DIFFERENT METRICS OF THOSE STATE STATUTES.
AND SO HERE'S JUST A SNAPSHOT OVER THE LAST THREE YEARS, SIMILAR TO WHAT WE SHOWED YOU ON THE GENERAL SALES TAX AND.
YOU COULD SEE THAT EVEN THAT YEAR WHERE WE HAD DECLINES IN OUR STATE ON OUR GENERAL SALES TAX.
OUR STATE SHARED REVENUE DID WELL IN THIS, IN THIS IN THAT FISCAL YEAR ACTUALLY HAD A GAIN ABOUT THREE PERCENT OVER BUDGET IN FISCAL YEAR 19-20 IN 2020-21, A GREAT GROWTH YEAR FOR OUR STATE SHARED TAXES, LEADING THE PACK WITH OUR STATE SHIRT SALES TAXES ABOUT NINETEEN PERCENT INCREASE OVER PRIOR YEARS.
A STRONG RETAIL MARKET HELPED IN THAT AREA.
THE ONLINE SALES HELPED IN THAT AREA.
THOSE WERE SOME OF THE CONTRIBUTING FACTORS.
THE URBAN REVENUE IS OUR INCOME TAX YEAR.
THOSE ARE A RELATIVELY KNOWN AND WE USUALLY GET PRETTY CLOSE TO BUDGET BECAUSE THOSE ARE TWO FISCAL YEAR PRIOR COLLECTION PERIOD.
THEY CALCULATE IT AND THEN THEY DISTRIBUTE THE YEAR AFTER THAT.
SO THOSE WE KIND OF HAVE NO NUMBERS.
[INAUDIBLE] WHICH IS OUR VEHICLE REGISTRATION TAX, HAS BEEN DOING VERY WELL OVER THE LAST COUPLE OF YEARS.
WE ACTUALLY SAW OVER $4 MILLION LAST FISCAL YEAR, WHICH, YOU KNOW, THAT'S VEHICLE REGISTRATIONS, PEOPLE, NEW CARS, BRINGING CARS IN THE COMMUNITY AND SO FORTH.
AND THIS YEAR, REVENUE DID VERY WELL.
IT'S SLOWED DOWN A LITTLE BIT THIS FISCAL YEAR, SO WE DON'T EXPECT TO MEET THE SAME LEVELS AS LAST FISCAL YEAR.
WE'RE LOOKING AT PROBABLY ABOUT THREE POINT EIGHT MILLION.
SO A LITTLE BIT OF DECLINE OVER OVER ACTUAL BUT ABOVE BUDGET.
AS WE PROJECTED THIS YEAR IN FY 21-22 OVERALL BUDGET TO ESTIMATES, ALL CATEGORIES WILL ARE PROJECTED TO BE ABOVE WHAT WE BUDGETED ABOUT $1.3 MILLION GROWTH IN REVENUES.
A PORTION OF THIS REVENUE INCREASE IS RELATED TO CENSUS FIGURES.
I DON'T HAVE ALL THE NUMBERS ON ME RIGHT NOW, BUT WHEN WE LOOK AT THE CITY'S PROPORTIONATE SHARE OF POPULATION TO THE REST OF THE STATE, THE CITY ACTUALLY GAINED A FRACTION OF POPULATION.
AND WHAT THAT CALCULATES INTO IS THE STATE SHARE SALES TAX, THE STATE SHARE INCOME TAX PRIMARILY THOSE TWO CATEGORIES BECAUSE IT'S BASED ON YOUR PERCENTAGE OF POPULATION.
SO WE ACTUALLY ARE GOING TO SEE SOME GROWTH IN THOSE AREAS.
IF YOU LOOK AT THE STATE SHARE URBAN REVENUE, WE'RE PROJECTING ALMOST A 300 OR SO.
THERE'S ALMOST A $300,000 INCREASE IN REVENUES, JUST PRIMARILY BECAUSE OF THAT POPULATION CHANGE.
SO WITH THE NEW FLAT TAX [INAUDIBLE] WERE ABLE TO INCREASE OUR SHARE AS THEY PRODUCED THE TOTAL.
BUT WHEN IT COMES DOWN TO ACTUALLY RUNNING THE NUMBERS, IS IT THE CASE THAT
[02:55:01]
WE ACTUALLY ARE NOT BEING HIT BY THE FLAT TAX? OR IS THAT SOMETHING THAT THREE YEARS WOULD BE IN PLACE WE'RE GOING TO EXPECT IT.THAT IS SOMETHING I WILL DIG INTO FOR FEBRUARY AS WE'RE LOOKING AT THE LONG RANGE PLAN OF THAT IMPACT.
THE ARIZONA LEAGUE OF CITIES HAS PROVIDED SOME PROJECTIONS, BUT WAS EARLY ON IN THE CONVERSATION ABOUT THAT LEGISLATION.
SO AND WE DIDN'T GET THE FULL TOTAL THAT WE WERE, ACTUALLY.
WE FELT THAT THEY DID A LITTLE LESS.
SO I DIDN'T KNOW HOW MUCH THAT'S GOING TO GIVE US.
YEAH, I I DON'T HAVE THAT RIGHT NOW.
I THINK IT'S GOING TO HIT US, BUT IS GROWTH GOING TO MAINTAIN GREATER THAN THE IMPACT OF THOSE CHANGES IN TAXABLE INCOME? IT'S A WHOLE EQUATION AS FAR AS HOW THE NUMBERS GROW IN THE FUTURE, BUT WE'LL WE'LL HAVE MORE INFORMATION ON THAT.
AND DEFINITELY SOMETHING WE'RE LOOKING AT.
ALL RIGHT, NEXT UP IS OUR HOW WE USE A REVENUE SHARE PROPORTION OF THE GAS TAXES WE WERE RECEIVE THROUGH THE STATE.
HERE, I JUST WANTED TO SHOW YOU A TREND LINE OF OUR REVENUES, OUR ACTUAL REVENUES THAT WE'VE RECEIVED BACK TO 2012-13.
HERE YOU CAN SEE IN 2019-2020 THE YEAR THE PANDEMIC HIT OUR REVENUES VERSUS OUR BUDGET PROJECTIONS.
THE ORANGE THE ORANGE PORTION REPRESENTS WHAT OUR BUDGET PROJECTIONS WERE BACK IN FISCAL YEAR 19-20-21.
THE BLUE LINE REPRESENTS THE ACTUAL COLLECTION OF REVENUES, SO WE EXPECTED SOME GROWTH IN OUR BUDGET PROCESS.
HOWEVER, THOSE WERE HIT PRETTY HARD AS PEOPLE STARTED TO STAY HOME, LESS TRAVEL ON THE ROADS.
HIGHWAY USER TAX WAS ONE OF THOSE HEAVILY IMPACTED DURING THIS PANDEMIC, AT LEAST AN INITIAL STAGE OF THE PANDEMIC.
AS WE GOT INTO THE NEXT FISCAL YEAR JULY 2020, 20 YEAR 2020 AND ON THEY REBOUNDED PRETTY WELL AND YOU COULD SEE KIND OF HOW THAT THE ORANGE, THE PROJECTIONS WERE GOING HIGHER AND THEN LEVELING OUT.
THE ACTUAL COLLECTIONS ARE GOING KIND OF THE OPPOSITE.
THEY LEVELED OUT AND NOW THEY'RE GOING UP.
AND IT'S BEEN INTERESTING IF THEY CAN MAINTAIN THAT THAT GROWTH LEVEL IN THIS CURRENT FISCAL YEAR, WE SAW A GREAT JANUARY IN REVENUE COLLECTION.
BUT THE THE LAST FEW MONTHS HAVE BEEN A FIVE TO SIX PERCENT DECLINE YEAR OVER YEAR, SO SOMETHING HAS SLOWED DOWN OUR GAS TAX COLLECTIONS FOR A COUPLE OF MONTHS.
SO WE'RE WE'RE MONITORING THAT TO SEE WHERE IT'S GOING TO LAND AND WHAT OUR PROJECTIONS WILL BE.
BUT THERE ARE SEVERAL SEVERAL COMPONENTS THAT THAT CREATE THE CHANGES IN THE REVENUE COLLECTING AND THESE THESE GAS TAXES, GAS PRICES AS GAS PRICES.
ONE OF THOSE REASONS PEOPLE MAY BE JUST NOT GOING TO DRIVE AS MUCH BECAUSE GAS PRICES ARE GOING UP.
ARE PEOPLE GETTING MORE EFFICIENT VEHICLES? WE HOPE THEY ARE MORE EFFICIENT VEHICLES, LESS GAS THAT COULD BE AN IMPACT AS WELL AS MOBILITY.
PEOPLE ARE GOING TO WORK FROM HOME AND DRIVE LESS OR JUST CHOOSE NOT TO BE OUT IN THE COMMUNITY.
THAT'S GOING TO IMPACT GAS SALES AND OUR TOURISM INDUSTRY.
YOU KNOW, THE MORE PEOPLE WE BRING IN VEHICLES FROM PHOENIX OR SO FORTH, THE MORE THEY'RE SHARING IN OUR REVENUES IN THIS CATEGORY.
SO SEVERAL FACTORS THERE THAT THAT DRIVE THESE REVENUES.
AND WE WILL MONITOR THOSE AND BRING YOU MORE INFORMATION ON FEBRUARY.
YOU KNOW, THIS IS THIS IS THE ONE THAT THESE FUNDS.
IT'S A GROUP OF FUNDS THAT ARE FOR THE TWO PERCENT COLLECTION ON HOTEL, MOTEL, SHORT-TERM RENTALS, AS WELL AS OUR RESTAURANTS AND BARS.
TWO PERCENT IS DEDICATED TO THESE FIVE PROGRAMS THAT WE HAVE HERE, AND THEY'RE PROPORTIONALLY ALLOCATED, HEIDI [INAUDIBLE] EXPLAIN KIND OF WHERE THE PERCENTAGES ARE ON THE COLOR OF MONEY.
AND THIS IS AN INDUSTRY THAT WAS PROBABLY HIT THE HARDEST IN OUR COMMUNITY.
THERE ARE OTHERS THAT DEFINITELY HAD IMPACTS ON OUR COMMUNITY.
BUT THE TOURISM RELATED ACTIVITIES THE RESTAURANTS AND BARS WERE ONE OF THE HEAVIEST HIT DUE TO THIS PANDEMIC.
AS MENTIONED EARLIER, THE DECLINES IN THAT THAT LAST QUARTER, FISCAL YEAR 19 AND
[03:00:07]
2019 -2020, WE WERE DOING REALLY GOOD LEADING UP TO JANUARY, FEBRUARY OF THAT FISCAL YEAR AND THEN THINGS SHUT DOWN AND WE THOUGHT THAT SIXTY TWO PERCENT DECLINE IN HOTEL MOTELS AND SHORT TERM RENTALS REVENUES AND SIMILAR WITH OUR RESTAURANT AND BAR SALES.AND HERE YOU CAN SEE THAT WE WERE UNDER OUR PROJECTIONS FOR THAT FISCAL YEAR BY ALMOST $900,000 FOR THAT FISCAL YEAR.
SO WE'RE DEFINITELY MAKING CORRECTIONS TO THOSE FUNDS AS WE MOVE FORWARD.
THE BUDGET WE ADOPTED PRIOR TO THE PANDEMIC SHOWED MODERATE GROWTH.
SO AS WE MOVE ON TO THE 2020-2021 CYCLE YOU COULD SEE THAT REVENUES DID GROW GREW BY $700,000 IN THESE CATEGORIES, BUT WE DIDN'T MEET OUR PROJECTIONS WE HAD PRE-RECESSION.
SO OVERALL, YOU CAN SEE OVER THE TWO YEAR PERIOD IS OVER A $1.1 MILLION IMPACT TO THESE FUNDS, PRETTY SUBSTANTIAL IMPACT THAT THESE AREAS HAD.
AND I JUST HAVE TO SAY KUDOS TO OUR ECONOMIC VITALITY AND TOURISM TEAM.
YOU KNOW, WE GENERALLY OUTPERFORM THE STATE AND WHEN WE TALK ABOUT REBOUNDING IN OUR METRICS FOR HOTEL OCCUPANCIES AND OUR TOURISM RELATED BUSINESSES, THEY GO TO IT, THEY INVEST THE TIME AND THE MONEY DURING THESE TYPES OF EVENTS TO TRY AND ASSURE AND BOLSTER THOSE COMMUNITIES, THOSE CATEGORIES AND BRING THOSE.
SO I BELIEVE WE WE PROBABLY OUTPACE THE STATE IN RECOVERY OF OUR OUR TAX CATEGORY ALSO.
JUST FIVE MINUTES UNTIL WE HAVE BREAK FOR LUNCH LET'S SEE.
BUT IF YOU LOOK AT THAT, THAT MILLION DOLLAR PERSPECTIVE FROM OUR OUR SIDE, THAT'S A LOT OF MONEY FOR US.
BUT WHEN YOU TAKE THAT AND COMPARE THAT TO THE TWO PERCENT AND WHAT THE SALES LEVEL WAS, THAT'S IN OVER $50 MILLION IMPACT FOR THESE INDUSTRIES, YOU KNOW, $50 MILLION TIMES, TWO PERCENT, THAT'S OUR MILLION DOLLARS.
BUT IT WAS A HUGE IMPACT TO THESE TOURISM RELATED INDUSTRIES, NOT JUST THESE BUT OTHER INDUSTRIES IN OUR COMMUNITIES.
SO IT GIVES YOU A FEEL OF HOW HARD THOSE WERE HIT.
WE DO SEE THESE CONTINUE TO REBOUND THIS YEAR, VERY FAVORABLE REVENUES THIS FISCAL YEAR.
WE ADJUSTED OUR BUDGETS BASED ON THE RECESSION FOR THIS CURRENT FISCAL YEAR, BUT THEY'RE GOING TO OUTPACE AND BEAT THOSE NUMBERS.
SO WE'RE THRILLED ABOUT THAT AND THE ABILITY TO REGAIN THAT MARKET.
WE'LL HIT ABOUT $9.5 MILLION THIS YEAR, ABOUT A $762,000 GAIN OVER OUR BUDGET.
SO IT'S VERY POSITIVE IN THESE THESE FUNDS AND WHAT THEY'LL HAVE AVAILABLE ON THIS COMING BUDGET CYCLE.
SO I ALSO WANT TO JUST GO THROUGH A COUPLE OF OUTLINING THE METRICS IS THAT OUR TOURISM INDUSTRY LOOKS AT, YOU KNOW, HOW DOES THIS AFFECT OUR HOTEL REVENUES IN OUR COMMUNITY AND SO FORTH? AGAIN, THANKS TO OUR TOURISM TEAM FOR THE DATA, THEY COLLECT THIS ON A MONTHLY BASIS.
THEY SHARE THAT WITH ME AND OTHERS, THE BUDGET TEAM.
SO WE CAN KIND OF HAVE WE SEE WHAT'S COMING ONCE EVERY MONTH AND HOW REVENUES ARE ALIGNING.
THESE ARE THREE KEY KEY METRICS THAT THEY LOOK AT.
ONE IS AKIN TO SEE THE PERCENTAGE OF ROOMS THAT ARE ACTUALLY OCCUPIED.
THE AVERAGE DAILY RATE THAT IS BILLED TO THEIR CUSTOMERS, AND THE REVENUE PER AVAILABLE ROOM.
HOW MUCH, YOU KNOW, THEY [INAUDIBLE] WHAT'S THE REVENUE PER AVAILABLE ROOM THAT THEY'RE COLLECTING? THESE ARE THREE KEY METRICS THAT THEY THEY WATCH MONTHLY IN OUR COMMUNITY.
THESE ARE CALENDAR YEAR NUMBERS.
AND THESE REPRESENT THE ANNUAL METRICS, NOT JUST THE MONTHLY, BUT THE ANNUAL METRICS THAT THEY PROVIDE.
SO THE TOP LINE, THE RED LINE REPRESENTS THE AVERAGE DAILY RATE AND AND EACH ONE OF IT KIND OF DOESN'T SHOW UP VERY WELL ON HERE.
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THERE'S A TREND LINE THAT YOU CAN SEE ON EACH ONE OF THESE DASHED LINE.IT'S KIND OF A TREND THAT WE'RE SEEING AND WHERE WE'RE AT.
SO I'M GOING TO FOCUS ON 2019-2020-21 FOR THIS 2019, WE WERE DOING GREAT.
REVENUES FOR DAILY RATES WERE WERE SLOWLY GAINING.
BUT YOU SEE THAT BIG DIP IN 2020 CALENDAR YEAR.
THAT WAS THE BIGGEST YEAR OF THIS IMPACT FOR THE LODGING METRICS AND THEY SAY, SAW A MAJOR DECLINE IN THEIR AVERAGE DAILY RATE.
THEY WENT DOWN ABOUT $15 IN AN AVERAGE DAILY RATE.
THAT'S QUITE AN IMPACT TO THE HOTEL INDUSTRY, BUT THEY HAD TO KIND OF MAKE THOSE CORRECTIONS TO TRY AND KEEP OCCUPANCY UP.
SO IT'S A BALANCING MEASURE THAT LODGING AGENCIES NEED TO DO.
OK, LET'S LOWER THE RATE, LET'S GET PEOPLE TO OCCUPY ROOMS. AND SO THEY HAD TO MAKE THOSE ADJUSTMENTS.
BUT YOU CAN SEE COMING OUT OF LAST COUNT HERE AND THEN THIS FISCAL YEAR.
THEY'VE MADE DECISIONS TO INCREASE THEIR AVERAGE DAILY RATES.
AND I THINK THAT'S A MEASURE OF IF THEY DON'T HAVE THE OCCUPANCY, THEY NEED TO INCREASE THEIR THEIR RATES TO MAINTAIN THEIR OPERATIONS AND OVER PERIODS OF TIME.
SO THERE YOU CAN SEE HOW THOSE WERE IMPACTED DURING THIS PANDEMIC.
THE GREEN LINE, THE BLUE LINE IS MORE OF A FLAT LINE.
AND THAT'S THAT'S AN INTERESTING LINE TO WATCH BECAUSE YOU CAN SEE IT'S FAIRLY FLAT.
WE WE'VE BEEN RUNNING IN THE SEVENTY TWO TO SEVENTY FIVE PERCENT OCCUPANCY RATES IN OUR HOTELS, WHICH I THINK IS A REALLY GOOD METRIC AND A REALLY GOOD LEVEL TO BE.
BUT WHEN WE HIT 2020, THEIR OCCUPANCY RATES WENT FROM.
FROM A SEVENTY THREE PERCENT DOWN TO LESS THAN SIXTY PERCENT, IT WAS A BIG DECLINE IN HOW MANY PEOPLE WERE COMING AND OCCUPYING THEIR ROOMS. IT REBOUNDED AND WE ARE PROJECTING FOR THIS CALENDAR YEAR ACTUALLY TO GET BACK TO ABOUT THAT AVERAGE IN THIS CURRENT CALENDAR YEAR.
THEN THE GREEN LIGHT KIND OF REPRESENTS THE SAME AS THAT RED LINE IS THE EXTRA REVENUE PER AVAILABLE ROOM AND IT KIND OF HOW HOW THE METRIC WORKS.
IT KIND OF YOU CAN SEE THE SAME DIP SIMILAR TO THE DAILY RATES.
AND IT JUST MIRRORS WHAT, YOU KNOW, COMING TO THE END OF THIS CALENDAR YEAR 2021.
I THINK WE'VE GOT THE REBOUND AS FAR AS OCCUPANCY, YOU KNOW, THE RATES ARE A LITTLE BIT HIGHER.
SO THAT IS DEFINITELY DRIVING OUR SALES TAX COLLECTION FOR BOTH OUR GENERAL FUND SALES TAX.
TRANSPORTATION TAXES BENEFIT FROM THESE AREAS, AS WELL AS OUR BBB FUNDS.
SO WE'RE DEFINITELY SEEING THAT THAT TREND OF PROJECTION GOING FORWARD.
SO I JUST WANTED TO SHARE THAT INFORMATION WITH YOU.
[INAUDIBLE] BUT THAT WAS MY LAST.
IT WAS JUST A LONGER TERM PICTURE OF IT.
I MEANT TO TAKE THIS ONE OUT, BUT THERE YOU HAVE IT.
THAT'S EVEN A LONGER TERM PERSPECTIVE OF THIS.
LET'S GIVE A ROUND OF APPLAUSE [INAUDIBLE].
WE WE DO HAVE LUNCH BREAK THIS TIME AND WE WILL BE COMING BACK HERE AT 12:30, SO A 30 MINUTE LUNCH BREAK.
I ASK THAT YOU COME BACK JUST TWO MINUTES PRIOR AND GET YOURSELF SETTLED SO IT CAN BE NICE AND QUIET FOR THOSE ONLINE.
AND IF YOU HAVE QUESTIONS FOR WHAT RICK JUST PRESENTED, IF YOU WOULDN'T MIND WRITING THOSE DOWN, PERHAPS THOSE QUESTIONS CAN BE FOLLOWED UP ON OUR NEXT SESSION WHEN WE COME BACK FROM LUNCH.
[INAUDIBLE] THANK YOU FOR YOUR ATTENTIVENESS AS WE GET STARTED ON THE NEXT SECTION.
I JUST HAVE A LITTLE BIT OF SELF-REFLECTION FOR YOU RIGHT NOW.
I WOULD LOVE TO ASK EVERYONE IN THE ROOM AS WELL AS OUR COUNCIL MEMBERS, MAYOR, CITY MANAGER, TO TAKE A MOMENT AND THINK AND WRITE DOWN SOMETHING THAT YOU LEARNED OVER THIS MORNING THAT WAS SURPRISING TO YOU.
SOME PIECE OF INFORMATION THAT WAS SURPRISING TO YOU.
AND THEN I WOULD LOVE TO HEAR IT, YES.
COUNCIL MEMBER MCCARTHY, I THOUGHT IT WAS INTERESTING THAT IN THE LAST NINE YEARS.
THE PRICE OF A HOTEL ROOM WENT UP 50 PERCENT, OH, EXCUSE ME, TWO THIRDS WENT
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UP TWO THIRDS, AND THAT'S NOT JUST IN FLAGSTAFF THAT'S HAPPENING ACROSS THE NATION.YES, THE COST OF A HOTEL ROOM.
CITY MANAGER CLIFTON I WAS ENLIGHTENED TO FIND OUT THAT OUR RECESSION ONLY LASTED FOR TWO MONTHS.
OUR RECESSION ONLY LASTED FOR TWO MONTHS WITH COVID.
I KNOW I WAS VERY SURPRISED BY THAT, TOO.
ANY ONE ELSE? SOMETHING THAT YOU FOUND MOST SURPRISING.
I THINK YOU PUT A NUMBER ON THE NUMBER OF RETIREES IN THE PAST YEAR, WHICH IS PARTLY AN ANSWER TO OUR OUR LIMITED SUPPLY OF HEALTH WORKERS.
SO SO WHEN IT COMES TO THE SMALLER POOL OF APPLICANTS REALLY RECOGNIZING THE AMOUNT OF PEOPLE WHO HAVE ACTUALLY RETIRED.
I'VE HEARD I'VE BEEN PART OF A LOT OF MEETINGS ABOUT THIS GREAT RESIGNATION.
THEY SPEAK OF AND RETIREES WAS NEVER PART OF THAT CONVERSATION BEFORE.
THAT WAS UNIQUE DO WE HAVE ANY COMMENTS IN THE CHAT BOX OF ANYONE THAT FOUND SOMETHING QUITE INTERESTING, PERHAPS VICE MAYOR? OK, SO IT'S IT'S A GREAT LITTLE SELF-REFLECTION MOMENT BECAUSE IT'S IMPORTANT TO RECOGNIZE AS ALL THIS INFORMATION IS BEING GIVEN TO US.
BUT THERE'S A LOT OF NEW INFORMATION FOR US TO DIGEST AND TO CONSIDER AS WE MOVE FORWARD, AS WE SPEND OUR TIME WITH THIS HIGH LEVEL AND WE GO INTO THE DETAILS IN THE NEXT COMING MONTHS TO KEEP THESE TYPES OF SURPRISING PIECES OF INFORMATION IN THE BACKS OF OUR MINDS.
AND WITHOUT FURTHER ADO, I WANT TO TURN IT OVER TO RICK TADDER ONCE AGAIN.
AND GREG CLIFTON TO GIVE US SOME INFORMATION ABOUT MAINTAINING DIGITAL HEALTH.
WE ARE IN FACT, TWINS, SAME TEAM COLORS.
THIS MEANS YOU HAVE A SESSION PLANNING REFRESH.
THANK YOU AND WELCOME BACK, EVERYBODY, I HOPE YOU HAD A GOOD LUNCH.
WE'RE GOING TO CHAT JUST A BIT ABOUT THE RECESSION PLAN.
THERE WAS NICE REFERENCES MADE THIS MORNING ON A NUMBER OF FRONTS THAT LEAD INTO THIS.
WE TALKED ABOUT THE BUDGET TEAM'S ROLE IN RECESSION PLANNING, AND THAT'S BEEN AN ACTIVE AND A PROACTIVE ROLE ALONG THE WAY.
AND THEN IN THE COLOR OF MONEY, WE TALKED ABOUT THE VARIOUS SOURCES OF REVENUES AND SO FORTH.
WELL, ALL THAT AGAIN LENDS ITSELF TO THIS DISCUSSION.
AND WHEN WE TALK ABOUT RECESSION PLANNING, SOMETIMES THERE ARE THINGS WE CAN DO TO INFLUENCE OUR REVENUES.
OF COURSE, OUR TOURISM AND ECONOMIC VITALITY ALWAYS BUSY ON THAT FRONT.
BUT REALLY, IN THE REALM OF RECESSION PLANNING, WE'RE TALKING ABOUT EXPENDITURE ADJUSTMENTS AND THAT IS WHAT WE DO AND THAT IS WHAT WE HAVE DONE.
I WOULD HAVE TO THINK THAT EVEN WITH THE TWO MONTHS OF RECESSION, THAT RICK MADE REFERENCE TO THE RECESSION PLANNING POLICIES AND IMPLEMENTATION ENABLED THE CITY TO WITHSTAND SOME ECONOMIC DOWNTURNS.
AND EVEN THOUGH IT LASTED FOR TWO MONTHS, REALLY THE EFFECTS THAT YOU SAW THIS IN THE GREAT RECESSION ON THAT GRAPHIC, THE EFFECTS OF RECESSIONS CAN BE LONG LASTING, ESPECIALLY IF WE EVER GET TO THE REALM OF HAVING TO, YOU KNOW, REDUCE OUR LABOR FORCE AND TAKE REALLY DRASTIC MEASURES.
THE GOOD NEWS IS WE DID NOT GET TO THAT LEVEL IN OVER THE LAST TWO YEARS.
AT ANY RATE, THE BUDGET TEAM HAS ENDEAVORED TO REVISIT THE RECESSION PLAN A LITTLE BIT IN THE REARVIEW MIRROR TO SEE HOW IT WORKED FOR US.
AND I THINK BY AND LARGE, THE NEWS WAS VERY GOOD.
SOME QUICK BACKDROP ON HOW OUR RECESSION PLAN WORKS, IT OVERLAYS ON TOP OF THE BUDGET IS REALLY INDEPENDENT OF THE BUDGET.
AND THAT'S GOOD BECAUSE AS WE NOW KNOW, BECAUSE HEIDI SHOWED US THE TIMELINE THAT OUR BUDGET PROCESS IS RATHER LONG AND INVOLVED, SPANNING SEVERAL MONTHS AND A LOT OF
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WORK.AND IF WE WERE TO HAVE TO CHANGE OUR BUDGETS ON THE TAIL END, WHICH WOULD HAVE BEEN THE CASE A YEAR AND A HALF AGO AS WE SAW OUR REVENUES DECLINE, THAT WOULD HAVE WREAKED HAVOC ON OUR PROCESS NUMBER ONE AND NUMBER TWO, IT WOULD HAVE FORCED US INTO A POSITION OF HAVING TO TAKE RATHER DRACONIAN MEASURES ON THE FRONT END AND THE ANTICIPATION OF THE UNKNOWN ON THE BACK END.
HOW LONG WILL THE RECESSION LASTS? HOW HOW DEEP WILL WE GET? [INAUDIBLE] ALL THESE THINGS WE TALKED ABOUT A YEAR AND A HALF AGO IN APRIL.
THE GOOD NEWS IS WE DID NOT ALTER THE BUDGET AT ALL.
WE LIVED WITH THE BUDGET THAT THE COUNCIL HAD BEEN WORKING ON AND ULTIMATELY ADOPTED.
WHAT WE DID WAS IMPLEMENT OUR RECESSION PLAN, WHICH OVERLAID ON ON TOP OF THE BUDGET AND PUT INTO PLACE SOME MEASURES THAT WE TOOK TO SCALE BACK ON OUR EXPENDITURES AND WE DID THAT IN A VERY NIMBLE FASHION.
THE RECESSION PLAN BEING PREDICATED UPON FIVE PHASES WE WERE IN THE FIRST PHASE, WE WERE IN THE SECOND PHASE.
WE EVEN PROGRESSED ALL THE WAY TO THE THIRD PHASE.
EACH ONE, AS YOU CAN SEE HERE, SHOWING DIFFERENT DEGREES OF ACTIONS, REMEDIAL ACTIONS TO BE TAKEN.
SO THE THIRD STAGE WAS THE SIGNIFICANT STAGE AND THAT ONE DID REQUIRE COUNCIL ACTION AND COUNCIL DID TAKE THAT ACTION ACCORDINGLY.
AND WE FOLLOWED THE MEASURES, AS HEIDI [INAUDIBLE] MENTIONED EARLIER.
THE BUDGET TEAM IN THAT TIMEFRAME WAS MEETING AT LEAST ONCE A DAY, SOMETIMES MORE.
WE WERE VERY BUSY SCRUTINIZING THE EXPENDITURES AND THE REQUESTS.
AND I WANT TO SPEAK FOR THE ENTIRE ORGANIZATION, WHICH WAS VERY RESPONSIVE TO THIS DOWNTURN IN A VERY MEANINGFUL WAY.
THE DIRECTORS, THE MANAGERS ACROSS THE SPECTRUM OF THE ORGANIZATION TOOK MEASURES AND WE WERE ABLE TO GET THROUGH THIS DOWNTURN IN GOOD FASHION.
IS THIS A ONE SLIDE DEAL OR IS THERE ANOTHER ONE? OK.
REVISITING HOW THE RECESSION PLAN WORKED.
WE WANTED TO TAKE THE OPPORTUNITY WE THE BUDGETING WHILE THINGS WERE FRESH IN OUR MINDS TO LOOK AT LESSONS LEARNED AND TO SEE IF THERE WERE WAYS TO IMPROVE UPON THE PLAN AND THIS IS THAT.
THE THE PREVIOUS RECESSIONS, THEY ARE EXISTING ONE.
RATHER, WE LOOKED AT THE PRIMARY FOCUS IS ON OPERATING EXPENSES VERSUS THAT OF CAPITAL IMPROVEMENTS.
BUT IF YOU RECALL WITH THE RECESSION PLAN, WE.
WELL, I'M SKIPPING AROUND HERE, I'M GOING TO GO TO THE SECOND BULLET POINT FIRST.
THE GENERAL FUND, I WANT TO MENTION THAT BECAUSE WE HEARD AND LEARNED A LOT ABOUT THE GENERAL FUND THIS MORNING AND A LOT OF THE PRESENTATIONS THAT WERE MADE WERE FOCUSED ON GENERAL FUND REVENUES.
AND I RECALL RICK SHARED WITH US THAT A THIRD OF THE THE GENERAL FUND IS COMPRISED OF SALES TAX AND SALES TAX, IN TURN, IS A VERY GOOD BAROMETER OF HOW WE'RE DOING ECONOMICALLY.
YOU ALSO LEARN FROM HEIDI'S PRESENTATION ON THE COLOR OF MONEY THAT WE HAVE MANY, MANY DIFFERENT REVENUE STREAMS, SOME OF WHICH ARE A LITTLE BIT MORE INDICATIVE OF THE ECONOMY AND SOME OF WHICH MAY BE RATHER STEADY EVEN DURING ECONOMIC DOWNTURNS.
TO ILLUSTRATE WITH EXAMPLES, OUR SALES TAX IS INDEED INDICATIVE OF THE ECONOMIC HEALTH OF OUR OF OUR COMMUNITY.
AND YOU MIGHT SEE SOME SOME DIPS AND PEAKS WITH THAT.
BUT THEN IN OTHER REVENUE SOURCES, SUCH AS THINGS THAT MIGHT BE UTILITY BASED, LIKE RATES PAID ON WATER MAY NOT HAVE THAT MUCH FLUCTUATION BECAUSE FRANKLY, EVEN DURING AN ECONOMIC DOWNTURN, UTILITY USAGE DOES NOT ALWAYS REFLECT THAT SAME FLUCTUATION.
SO THE GENERAL FUND AS A WHOLE IS A VERY GOOD INDICATOR OF HOW WE'RE DOING ECONOMICALLY.
ONE OF THE CHANGES THE BUDGET TEAM CAME UP WITH IS THE EXISTING RECESSION PLAN HAS US LOOKING AT ALL OF THE FUNDS, ALL OF THE REVENUES, AND THEN WE DO.
RICK AND HIS TEAM DOES SOME CALCULATIONS TO SEE WHERE WE ARE PERCENTAGE WISE.
AND IF YOU RECALL, THE RECESSION PLAN IS IS BASED UPON REDUCTIONS PERCENTAGE REDUCTIONS IN REVENUES.
SO ZERO TO TWO PERCENT REDUCTION IN THE FIRST PHASE, TWO TO FIVE PERCENT [INAUDIBLE] AND SO FORTH.
WE ARE OF THE OPINION NOW THAT NO, NOTING WHAT I JUST STATED ABOUT HOW SOME FUNDS FLUCTUATE AND SOME DON'T.
THAT IT MIGHT BE A BETTER APPROACH JUST TO LOOK AT THE GENERAL FUND AS OUR AS OUR BAROMETER AND GAUGE FROM THAT HOW WE'RE DOING OVERALL ECONOMICALLY.
[03:20:03]
AND THAT SHOULD DRIVE US IN THE DECISIONS WE MAKE ON HOW WE EMERGE INTO THE RECESSION PLAN AND AND FROM THE RECESSION PLAN.SO WE'D LIKE TO THERE'S A BIT OF A SIMPLIFICATION.
IT'S AN APPROACH THAT WE THINK WOULD BE GOOD AND MEANINGFUL, BUT NOT AS COMPLICATED AS WHAT'S CURRENTLY IN THE PLAN.
SO THAT'S ONE OF THE BIGGER OUTCOMES OF THE BUDGET TEAM IS TO SUGGEST THAT WE JUST UTILIZE THE GENERAL FUND REVENUES AS WE'RE GAUGING HOW FAR INTO THE RECESSION CAN WE GO AND AND IN THE SIMILAR RESPECT, YOU KNOW HOW WE EMERGE FROM THAT PLAN.
WE HOPE IT'S YEARS BEFORE WE HAVE TO IMPLEMENT THE RECESSION PLAN AGAIN.
RICK INDICATED, YOU KNOW, FIVE TO SEVEN YEARS SOMETIMES AND IN BETWEEN THE RECESSIONS.
SO IT WOULD BE JUST FINE FOR THAT PLAN TO SIT ON THE SHELF AND GET DUSTY.
BUT RIGHT NOW, WE DO WANT TO REVISIT THIS AND WE'D BE BRINGING THIS TO COUNCIL, LOOKS LIKE ON JANUARY 7TH TO APPROVE OF THESE CHANGES.
OTHER CHANGES AND ANYBODY ELSE IN THE BUDGET TEAM CAN SPEAK TO THIS, WE TALKED ABOUT THE NEED TO INVEST DOLLARS STRATEGICALLY TO OFFSET THE IMPACT OF A RECESSION AND NOTABLY AGAIN SINGLING OUT TOURISM IN OTHER AREAS LIKE THAT THERE.
THERE MAY BE INSTANCES WHEN WE FIND OURSELVES IN AN ECONOMIC DOWNTURN TO DO WHAT WE CAN TO STIMULATE THE ECONOMY.
WE WERE SUCCESSFUL THIS LAST RECESSION IN DOING JUST THAT WITH THE HELP OF THE FEDERAL ALLOCATIONS THAT RICK SPOKE TO.
BUT IF YOU RECALL, THOSE STIMULUS FUNDS FOUND THEIR WAY INTO THE COMMUNITY PRETTY QUICKLY AND PRETTY EFFECTIVELY.
AND WE HAD A GRANT PROGRAM TO HELP OUR LOCAL BUSINESSES, AND WE DID A NUMBER OF THINGS.
SO IT SEEMS COUNTERINTUITIVE AT TIMES TO THINK THAT WE MIGHT BOLSTER OUR EXPENDITURES IN SOME AREAS IN A CLIMATE WHERE THINGS ARE GENERALLY DECLINING.
BUT IN ACTUALITY, THAT'S EXACTLY WHAT WE DID IN SOME INSTANCES AND DID FOR VERY GOOD REASON TO TRY TO HELP OUR BUSINESSES AND STIMULATE OR STIMULATE THE ECONOMY AND BRING ABOUT A LITTLE BIT MORE VITALITY.
THAT'S JUST IN TERMS OF, YOU KNOW, EXPENDITURE OF DOLLARS.
BUT I CAN MAKE A SIMILAR COMMENT WITH RESPECT TO WHAT WE DID AND THROUGHOUT THE COMMUNITY TO TO HELP BUSINESSES AND HELP CONSUMER BEHAVIOR, WHICH EVERYTHING WAS CHANGED, OF COURSE, DURING THE PANDEMIC AND IN THE INITIAL PART OF THE PANDEMIC PANDEMIC.
IF YOU RECALL, A LOT OF OUR INDOOR FACILITIES WERE CLOSED.
SO, YOU KNOW, WE WE GOT CREATIVE LIKE MANY COMMUNITIES DID.
WE FORMED THE EXPANDED USE OF [INAUDIBLE] TEAM, AND WE STARTED IMPLEMENTING SOME NEW IDEAS AND NEW STRATEGIES THROUGHOUT OUR COMMUNITY TO BETTER ENABLE, YOU KNOW, CONTINUED BUSINESS, FRANKLY AND SOCIAL BEHAVIOR AS WELL, BUT CONTINUED BUSINESS WITH THE PRIMARY DRIVER.
SO, YOU KNOW, PROVIDING SEATING OUTDOORS, PROVIDING TABLES IN HERITAGE SQUARE, ALLOWING FOR A [INAUDIBLE], ALLOWING FOR MORE PICKUP SERVICES CURBSIDE.
ALL OF THESE THINGS WERE DONE IN AN EFFORT TO KEEP THINGS MOVING DURING THIS PERIOD, AND I'M GETTING A LITTLE BIT BEYOND RECESSION AND A LITTLE BIT MORE INTO THE PANDEMIC, BUT FRANKLY, THE TWO WERE QUITE CONNECTED.
SO THE BOTTOM LINE IS INVESTING DOLLARS STRATEGICALLY IS SOMETHING THAT THE RECESSION PLAN SHOULD SPEAK TO, AND WE ARE SEEING THOSE DRAFT CHANGES ACCORDINGLY.
SO THE GENERAL FUND DOES A GENERAL, PARDON ME, AS A BAROMETER TO LOOK AT RATHER THAN ALL OF THE FUNDS IN THE AGGREGATE, HOW WE INVEST OUR DOLLARS.
THESE ARE THINGS THAT WILL BE SUGGESTED REVISIONS TO THE RECESSION PLAN.
AND WE'LL HAVE A RED LINE VERSION IN FRONT OF THE COUNCIL COMING IN JANUARY OR IN FRONT OF YOU NOW, I GUESS.
IS THERE ANYTHING ELSE I'M MISSING? I HAVE ONE CLOSING COMMENT ON THE RECESSION PLAN, BUT IN TERMS OF THE REVISIONS, ARE WE GOOD? YEAH, THE REVISIONS ARE ON PAGE 10 OF THE PDF PACKET IN YOUR COUNCIL PACKET, SO TAKE A LOOK AT IT.
WE UPDATED IT, WE REVISED IT AND WE'LL BE BACK IN FRONT OF YOU SO THAT'S ALL WE.
THE LAST THING I'LL MENTION[INAUDIBLE] ON TO THE NEXT SEGMENT, OUR RECESSION PLAN WORKED FOR US QUITE WELL AND WE'RE HAPPY FOR THAT.
IT'S IT'S ONE OF THE FISCAL POLICIES THAT WAS REFERENCED THIS MORNING THAT ENABLES US
[03:25:01]
AS A CITY TO WITHSTAND THE ECONOMIC DOWNTURNS, THE PEAKS AND VALLEYS AS THEY HAPPEN.AND TO PUT SOME MEANING TO WHAT I JUST SAID, THE RECESSION PLAN, YOU KNOW, ENABLED US TO BE A LITTLE BIT MORE ADAPTIVE AS AS WE WERE WATCHING OUR REVENUES AND DO THINGS THAT WERE NECESSARY, BUT NOT GOING BEYOND THAT.
THE DRACONIAN MEASURES THAT I MADE REFERENCE TO EARLIER HAD WE CHANGED THE BUDGET IN ANTICIPATION OF A RECESSION.
VERY WELL COULD HAVE INVOLVED THINGS LIKE LABOR REDUCTION AND SOME, SOME MORE DRASTIC MEASURES THAT WOULD HAVE HAD SEVERE IMPACT UPON OUR ORGANIZATION AND IN TURN UPON THE SERVICES WE PROVIDE TO OUR COMMUNITY.
WE DID NOT HAVE TO GO THAT FAR BECAUSE WE HAD A TOOL AT OUR DISPOSAL THAT ALLOWED US TO KIND OF DO THINGS ON THE FLY AS WE NEEDED TO, AND I THINK WE WOULD ALL AGREE THAT IT WORKED WELL FOR FOR THE CITY AND GOT US THROUGH THIS TIME.
THE OTHER THING I WILL ADD TO THAT IS THE POLICIES THESE POLICIES, LIKE THE RECESSION SPAN THAT WE HAVE IN PLACE ADOPTED BY THE COUNCIL.
WE'RE CAREFULLY CONSIDERED BY OUR BOND UNDERWRITERS AND INSURANCE PROVIDERS AND IMPORTANTLY, THOSE WHO INVESTED IN OUR CERTIFICATES OF PARTICIPATION A YEAR AND A HALF AGO WHEN PEOPLE ARE INVESTING IN SUCH SUMS OF MONEY IN MUNICIPAL BONDS.
PARDON ME OR IN OUR CASE, CERTIFICATES OF PARTICIPATION.
THEY LOOK AT THE HEALTH OF THE MUNICIPALITY IN WHICH THEY'RE INVESTING AND THEY LOOK AT OUR POLICIES AND THE BUDGET TEAM AND SPECIFICALLY [INAUDIBLE] RICK AND I SET BEFORE MANY GROUPS, AUDIENCES WHO WERE CONSIDERING INVESTING IN OUR CERTIFICATES.
AND WE TALK ABOUT THESE VERY THINGS.
WHAT ARE WE DOING TO DEAL WITH THE RECESSION? WHAT DO OUR FISCAL POLICIES LOOK LIKE, WHAT'S OUR BOND RATING, WHICH, BY THE WAY, WAS VERY GOOD? SO ALL OF THESE THINGS SPEAK WELL TO THE CITY'S FINANCIAL CONDITION, WHICH IN TURN POSITIONED THE CITY FOR GOOD INVESTMENTS AND BOND ISSUANCES, AND THE TWO GO HAND IN HAND.
SO GLAD TO SAY THAT THESE THINGS REALLY HELPED US AND SO SOMETIMES IN A MORE VISIBLE WAY, BUT BEHIND THE SCENES IN OTHER WAYS AS WELL, I THINK I'LL STOP WITH THAT.
[INAUDIBLE] I HAVE A QUESTION JUST [INAUDIBLE] POINT MENTIONED THERE WAS NO REDUCTION IN WORKFORCE.
I RECALL A YEAR AND A HALF AGO THERE WERE SOME FURLOUGHS AMONG TEMPORARY AND SEASONAL STAFFING.
WERE WE ABLE TO REHIRE ALL POSITIONS OR STILL IN THE PROCESS OF FILLING OUT THOSE POSITIONS? YEAH, THANK YOU FOR THE QUESTION.
IN THE FURLOUGHS, AS WE ALL KNOW, WERE RELATED TO THE PANDEMIC AND NOT SO MUCH TO THE RECESSION.
WE, OF COURSE, HAD TO SHUTTER MANY OF OUR BUILDINGS, AND IN DOING SO, ULTIMATELY WE KEPT PEOPLE ON THE PAYROLL AS LONG AS WE COULD, BUT EVENTUALLY THEY HAD TO BE FURLOUGHED.
WE DID NOT HAVE EVERYBODY RETURN.
WE LOST SOME EMPLOYEES WHO UNFORTUNATELY JUST WENT ON TO OTHER CAREERS OR OTHER, SOME OF WHOM I'M SURE MOVED OUT OF THE AREA.
SOME CAME BACK, BUT THAT WAS ONE OF THE THAT WAS ONE OF THE TRULY IMPACTFUL OUTCOMES OF COVID ON US WAS TO SAY, HAVE TO SAY GOODBYE TO I THINK IT WAS LIKE 160 WHO WENT ON FURLOUGH, 160 EMPLOYEES.
I JUST I JUST WANT TO PROVIDE A SPACE OF GRATITUDE AND APPRECIATION TO OUR CITY MANAGER AND TEAM.
I DO RECALL ALMOST TWO YEARS AGO WITH OUR BUDGET FOR THE FEBRUARY 1ST AND 2ND AND 2019 BEFORE COVID HIT OUR COMMUNITY.
CITY MANAGER HAS ALREADY COME UP WITH THE PREPARING FOR THE RECESSION PLAN.
SO BY BY MARCH, WE WERE ABLE TO PRESENT BY MARCH, APRIL YOU WERE ABLE TO DESCEND THE RECESSION [INAUDIBLE] AT THAT TIME.
I FIRST GOT ELECTED AND I WOULD TALK A LOT ABOUT HAVING A RECESSION PLAN IN PLACE AND MENTIONED THAT YOUR TEAM AND OUR TEAM DID A GREAT JOB AT PUTTING THAT IN PLACE AND ENSURING THAT WE HAVE SOME THINGS.
SO I ALSO WANT TO TAKE A MOMENT TO SAY THANK YOU.
I THINK IT MEANS A LOT TO THE CITY AND TO THE GOVERNMENT, TO OUR BONDING ABILITY AND OUR
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INVESTORS, BUT OVERALL, JUST OUR WELL-BEING AND HEALTH.SO I REALLY APPRECIATE OUR LEADERSHIP.
IF YOU WANT ME TO GO AWAY, YOU UNDERSTAND I'M HERE.
YOU'RE COMFORTABLE OVER THERE.
SO THIS SECTION, WE'RE TALKING ABOUT MAINTAINING FISCAL HEALTH, AND THERE'S A LOT OF THINGS WE CAN DO TO MAKE SURE WE'RE MAINTAINING A GOOD FOUNDATION FOR OUR ORGANIZATION AS WE SPOKE A RECESSION PLAN.
THE NEXT TOPIC IS PENSION FUNDING.
YOU KNOW, YOU GUYS HEARD A LOT ABOUT THIS OVER THE LAST COUPLE OF YEARS.
WE'VE DONE LOTS OF PRESENTATIONS ON IT.
I'M NOT GOING TO DOVE INTO IT TOO MUCH, BUT WE SAW IF WE DIDN'T MAKE ACTION ON OUR PUBLIC SAFETY PENSION PLANS, THERE WAS GOING TO BE GROWTH AND MORE RESOURCES PUT TOWARD OUR PENSION PAYMENTS ON AN ANNUAL BASIS, AND THEY WERE GOING TO CONTINUE AND PEAK TO MAYBE 10 MILLION MORE THAN THEY ARE TODAY.
AND IT WAS JUST WE WOULD KNOW COUNCIL AND WE WERE DOING THINGS TO TRY AND SLOW IT DOWN.
BUT WE'RE UP TO ABOUT TWO AND A HALF MILLION DOLLARS EXTRA A YEAR BY DIVIDING THE FUNDS.
BUT IT WASN'T TAKEN THE MOUNTAIN OF FUTURE PAYMENTS OUT OF THE EQUATION, THANKS TO COUNCIL AND GIVING US THE GREEN LIGHT AS AN ORGANIZATION.
WE MADE SOME MAJOR CHANGE AND IT'S REALLY A HIGHLIGHT IN THIS ENTIRE STATE AS WELL AS OUR ORGANIZATION.
THESE ARE THE KIND OF THINGS THAT MAKE US MORE STABLE WHEN WE LOOK AT FUTURE AND WE LOOK AT GROWTH OF OUR ORGANIZATION.
SO AS I MENTIONED LAST AUGUST OVER A YEAR AGO NOW, WE ISSUED 130, $3 MILLION IN CERTIFICATE PARTICIPATION DEBT AS CITY MANAGER CLIFTON MENTIONED.
WE WENT THROUGH A LONG PROCESS TELLING INVESTORS WHY THEY SHOULD INVEST IN US, WHY WE'RE DOING IT THIS TIME.
RECESSION PLANNING WAS A BIG THING IN OUR FINANCIAL STABILITY WAS ANOTHER.
SO HERE'S HERE'S JUST SOME OF THE RESULTS YOU'VE SEEN THESE PREVIOUSLY.
I HAVE AN HERE ON THE 2.9 PERCENT YOU WANT TO CORRECT.
I KNEW YOU'D HAVE THAT NUMBER BE 2.69 ON AN INTEREST RATE, WHICH IS A GREAT INTEREST RATE.
WE WERE A DOUBLE A RATED A MINUS FOR THIS TYPE OF DEBT, WHICH IS VERY GOOD FOR OUR ORGANIZATION AND DURING A PANDEMIC, JUST AFTER A RECESSION IS HUGE.
OUR DECISION TO SET UP A CONTINGENCY FUND $14 MILLION TO BE READY IN CASE THERE ARE MARKET CHANGES IN THE FUTURE WITH THE PUBLIC SAFETY PLAN, THEY CHANGE ACTUARIAL ASSUMPTIONS.
INTEREST RATE RETURNS KNOW THAT I HAVE TO SAY AT LEAST MOST FOR YOU.
THE ACTUARIAL ASSUMPTIONS ARE VERY IMPORTANT TO THE PLAN YOU SEE OVER A LONG, LONG RANGE OF PLANS $76 MILLION A LEVEL DEBT SERVICE.
THERE IS NO PEAKS IN OUR DEBT SERVICE.
IT IS FLAT FOR THE NEXT 20 YEARS VERSUS THAT, THAT $10 MILLION PEAK THAT WE SAW COMING AHEAD AND IT IS ACTUALLY LOWER THAN WHAT WE HAD DESIGNATED TO THE PENSION FUND $2 MILLION ANNUAL SAVINGS FOR US TO USE FOR ONGOING BUDGET.
SO OBVIOUSLY SO SORRY TO INTERRUPT, BUT WE HAVE ABOUT FIVE MINUTES LEFT OF THIS SECTION, SO LET ME ASK, DO YOU FEEL LIKE YOU NEED AND WHERE DO YOU WANT TO BORROW THAT TIME FROM, FROM THE AGENDA? I'M NOT SURE HOW MUCH TIME I NEED, BUT [INAUDIBLE].
WELL, HOW MUCH TIME YOU WOULD COMFORTABLY GET THROUGH THIS.
AND I'M SORRY IF I WENT TOO LONG ON MY STUFF.
WHY DON'T WE PLAN ON TAKING SOME TIME FROM THE COUNCIL EXPECTATIONS AT 2:30 TO GIVE YES, 15, 20 MINUTES, I THINK I SHOULD BE GOOD WITH THAT.
[03:35:07]
OKAY, LET'S ROLL THROUGH THIS WITH.SO YEAH, AGAIN, MAINTAINING OUR FISCAL HEALTH A HUNDRED PERCENT FUNDED PLANS.
WELL, LAST DECEMBER, A REPORT CAME OUT WE WERE AT FORTY PERCENT FUNDED, DIDN'T TAKE ACCOUNT THE DOWN PAYMENT.
WE MADE THE CONTRIBUTIONS THAT WE GOT AN INTERIM REPORT.
WE ARE NOW AT ONE HUNDRED AND THREE PERCENT FUNDED ON AN INTERIM REPORT, AND THE NEXT NEXT THING IS JUST AMAZING.
THE PUBLIC SAFETY PERSONAL RETIREMENT SYSTEM POST TWENTY SEVEN OVER TWENTY SEVEN PERCENT INVESTMENT RETURNS NET OF COST LAST FISCAL YEAR.
SO WE GOT OUR MONEY IN IN AUGUST, SO WE SHOULD BENEFIT IT FOR JUST ABOUT THE WHOLE YEAR FROM THOSE RETURNS AS AS THEIR MARKETS INCREASE.
SO THIS IS JUST HUGE AND I CAN'T WAIT TO SEE THAT ACTUARIAL REPORT.
CURRENTLY, WE'RE MODELING AT ABOUT A HUNDRED FIFTEEN PERCENT OF MARKET VALUE OF OUR ASSETS.
I THOUGHT I SHOULD GET IT THERE.
REPORTS SHOULD BE OUT SHORTLY.
ALSO, FISCAL RESPONSIBILITY IS KEY TO MAINTAINING FISCAL HEALTH, A STRUCTURED FIVE YEAR PLANS IN OUR ORGANIZATION.
WE DO THIS FOR ALL OF OUR FUNDS.
MAKE SURE ONGOING RESOURCES ARE THERE ACHIEVABLE REVENUES IF WE TALK ABOUT THAT A LITTLE BIT EARLIER TODAY.
CASH BALANCES WHEN YOU HAVE THESE GAINS IN ONE YEAR, YOU WANT TO USE THOSE FOR ONE TIME EXPENDITURES, NOT FOR ONGOING.
YOU DON'T WANT TO TAKE OH, WE GAINED A MILLION DOLLARS AND USE IT EVERY YEAR.
YOU CAN'T, SO USE THOSE FOR ONE TIME EXPENDITURES.
HAVING A GOOD POLICY ON FUND BALANCE, WE'LL TALK ABOUT THAT HERE COMING UP TWENTY PERCENT IN THE GENERAL FUND.
RECESSIONS HAVE BEEN BUILT INTO OUR PLAN SINCE THE LAST THE GREAT RECESSION.
WE'VE BEEN PLANNING RECESSIONS IN OUR PLANS AND WE'LL CONTINUE TO DO THAT.
AND OF COURSE, THE BUDGET PROCESS THAT TIME, THE THAT WE REALLY LOOK AT THOSE RESOURCES AND WE ALLOCATE IT APPROPRIATELY TO MAINTAIN LONG TERM FISCAL HEALTH.
[INAUDIBLE] FISCAL RESPONSIBILITY.
TALKING ABOUT BOND RATINGS, THIS IS WHERE WE ARE STRONG AS AN ORGANIZATION.
WE'RE CONSTANTLY IN THAT HIGH LEVEL OF BOND RATINGS THAT RECEIVE STANDARD BOARD MOODY'S SERVICE AND MOST RECENTLY, FITCH RATING.
AND I DON'T THINK WE HAVE A SLIDE IN THERE, I STARTED TO PUT A SLIDE TOGETHER, BUT HERE'S A.
HERE'S A CHART FOR YOUR FOR YOUR KNOWLEDGE AS FAR AS THE RATINGS THAT EACH AGENCY GETS.
AND WE ARE A DOUBLE A, WHICH PUTS US WAY UP HIGH IN THE RATINGS.
THERE'S JUST TWO RATINGS HIGHER THAN US WHEN IT COMES TO OUR GENERAL OBLIGATION BONDS.
THAT'S HOW WELL INDUSTRY SEE US AS A LEADER IN FINANCIAL STABILITY FOR THE ORGANIZATION.
SO KUDOS TO THE TEAM, CREW, BUDGET TEAM AND THE ORGANIZATION FOR YOUR DECISIONS.
I ALWAYS HAVE TO SAY MANAGEMENT SERVICES IS REALLY FISCAL FOCUS, FINANCIAL FOCUS, AND WE GOT GREAT TEAMS WITH OUR REVENUE SECTION, FINANCE SECTION AND PURCHASING SECTION.
WE TALKED ABOUT AWARDS LAST TUESDAY.
THANK YOU FOR THE RECOGNITION ON THE CITY MANAGER LETTER.
YOU HAVE CONSISTENT WORK DONE BY ALL OF OUR MANAGEMENT SERVICES TEAM.
GOOD CHANCE TO PLUG AND THANK THEM FOR THEIR DEDICATION.
FUND BALANCE RESERVE POLICY IS OUR LAST PART OF THIS DISCUSSION.
WELL, A GOOD A GOOD FUND BALANCED POLICY DEFINITELY HELPS YOU MAINTAIN FISCAL HEALTH SPECIFICALLY THROUGH RECESSIONARY PERIODS.
THE GOVERNMENT FINANCE OFFICERS ASSOCIATION IS REALLY THE HIGHEST GOVERNMENTAL MEASURE THAT WE HAVE IN THE UNITED STATES AND CANADA.
THEY PROVIDE CITIES, TOWNS, GOOD INFORMATION, BEST PRACTICES, TRAINING AND MANY HELP FOR OUR ORGANIZATION.
THEY HAVE BEST PRACTICES FOR UNRESERVED FUND BALANCES.
THESE ARE THE UNCOMMITTED FOR OTHER USES FOR A GENERAL FUND.
[INAUDIBLE] AND THERE'S THREE KEY COMPONENTS THAT THEY LOOK FOR WHEN SETTING YOUR UNRESERVED FUND BALANCE POLICIES.
HOW DOES IT ASSIST YOU IN MITIGATING THE RISK, THE CURRENT RISK AND FUTURE
[03:40:02]
RISKS OF YOUR YOUR OPERATIONS AND FUNDS? YOU NEED TO THINK ABOUT SETTING AN APPROPRIATE LEVEL OF UNRESERVED FUND BALANCES AND SHOULD YOU NEED TO UTILIZE THEM.YOU'VE GOT TO UNDERSTAND WHEN YOU UTILIZE THEM, WHEN YOU REPLENISH THEM OR HOW YOU REPLENISH THEM.
SO THEY HAVE AN ACTUAL MODEL, A SPREADSHEET, A CALCULATION MODEL.
AND I'VE USED THIS A COUPLE OF TIMES AND I HAD TO UPDATE IT FOR THIS RECENT PRESENTATION.
BUT BECAUSE OF THE PANDEMIC, I REALLY WANT TO MAKE SURE WE'RE STILL THERE.
SO HERE'S MANY LEVELS THAT THEY HAVE A RANKING SYSTEM FOR EACH OF THESE AREAS.
AND YOU GO THROUGH AND YOU LOOK AT, WHERE DO YOU SEE YOUR ORGANIZATION WHEN IT COMES TO REVENUE STABILITY? ARE YOU DIVERSE IN YOUR REVENUES? ARE YOU ARE YOU STRUGGLING BECAUSE YOU ONLY HAVE ONE REVENUE SOURCE IF YOU'RE ONLY SALES TAX BASE? ARE YOU REALLY BALANCED IN YOUR RISK OVER TIME? SO YOU LOOK AT THAT AS A MEASURE, YOUR EXPENDITURE VOLATILITY, YOU DO.
YOU HAVE A PROGRAMS THAT YOU SEE EXPENSES CONTINUE TO GAIN AND FALL IN AND MOVE AROUND A LOT.
HOW DO YOU LEVERAGE YOUR RESOURCES NOT ONLY FROM A GENERAL FUND PERSPECTIVE, BUT SUPPORTING THE REST OF THE ORGANIZATION OR THE COMMUNITY PROGRAMS? EXTREME EVENTS, I'M SURE YOU'RE AWARE OF EXTREME EVENTS WE'VE HAD A LOT OF OVER THE LAST DECADE SNOWSTORMS, FLOODS, FIRES.
THAT'S WHERE WE WE DEFINITELY RANK A LITTLE BIT HIGHER IN THE RISKS THERE.
HOW QUICKLY CAN YOU SELL YOUR INVESTMENTS TO GET CASH FOR MAINTAIN YOUR ORGANIZATION? DO YOU RELY RELIANCE ON OTHER FUNDS TO OTHER FUNDS RELY ON TAKE A POLL FROM THE GENERAL FUND AND, OF COURSE, CAPITAL PROJECTS.
HOW ARE YOU FUNDING YOUR CAPITAL PROJECTS? SO YOU GO THROUGH THIS MODEL AND CALCULATE WHERE YOUR GENERAL FUND WOULD END UP? UNDER USE AND REPLENISHMENT, SO THAT'S SETTING WHERE YOUR PERCENTAGE SHOULD BE.
THEN YOU TALK ABOUT HOW DO YOU USE THESE AND REPLENISH THESE DEFINING THE EVENTS? WE KNOW THAT THE RECESSION IS EVENT AND YOU IN OUR RECESSION PLAN SPECIFICALLY TALKS ABOUT HIDDEN, POTENTIALLY HIDDEN THE UNRESERVED FUND BALANCES, BUT NOT UNTIL THE SIGNIFICANT STAGE.
ONCE WE GET TO SIGNIFICANT STAGE AND WE HAVE COUNCIL ADOPTION, THAT'S WHEN WE'RE STARTING TO REALLY LOOK AT, WELL, MAYBE WE NEED TO DRAW DOWN ON OUR CASH RESOURCES INSTEAD OF CUTTING SERVICES.
SO THAT'S ONE OF THOSE DEFINED EVENTS.
AND THE PURPOSE IS TO TO USE THOSE RESOURCES TO BRIDGE IT SO YOU DON'T HAVE MAJOR IMPACTS RIGHT AWAY.
HOW DO YOU BRIDGE A RECESSION? RECOVERY PERIOD? A LITTLE BIT HERE, A LITTLE BIT THERE TO EXTEND THE TIME.
AND THEN YOU WANT TO TALK ABOUT HOW LONG ARE YOU GOING TO HAVE A REDUCED FUND BALANCE GENERALLY ONCE YOU START PULLING A RECESSION, WE'VE GOT TO TALK ABOUT, OK, NOW WE'VE GOT TO START REPLENISHING GENERALLY EXPECT TO DO IT WITHIN ONE TO THREE YEARS.
YOU WANT TO USE YOUR ONE TIME RESOURCES, REPLENISH IT.
IF YOU'RE FORTUNATE ENOUGH, REPLENISH IT THAT ONE YEAR, BUT THEN AT LEAST GET YOUR TIME TO GET THOSE FUND BALANCES RECOVERED IN YOUR ORGANIZATION.
IN OUR FINANCIAL PLANNING, THE BUDGET PROCESS, WE HAVE THAT IN OUR TOOLBOX FOLLOWING GUIDANCE FROM GFLA.
SO WE KEEP UPDATING OUR BALANCES AND UPDATES TO LONG TERM FORECASTS, ECONOMIC CONDITIONS AND EXTERNAL FINANCING EXPECTATIONS.
SO HERE'S A SNAPSHOT OF WHERE OUR FUND BALANCE RESERVE POLICIES ARE AT THE TOP IS OUR GENERAL FUND.
OUR CURRENT GOAL IS A TWENTY PERCENT UNRESERVED FUND BALANCE THAT'S TWENTY PERCENT OF YOUR ANNUAL ONGOING REVENUES.
HOW MUCH OF YOUR REVENUES ARE YOU GOING TO SET ASIDE? WHEN I DID THE MODEL FOR GFOA, THEY HAVE A RANGE THAT THEY SAY PUT OUT AND OUR TARGET FUND BALANCE HIT THE SEVENTEEN TO TWENTY FIVE PERCENT RANGE.
SO WE'RE ACTUALLY RIGHT, RIGHT IN THE MIDDLE OF THAT, WE WE COULD POTENTIALLY SAY, WELL, WE THINK WE WANT TO MOVE FURTHER.
MAYBE WE WANT TO GO TO THE TWENTY FIVE.
SO THE RESOURCES ARE MORE AVAILABLE DURING A RECESSION, BUT THAT'S SOMETHING WE'LL TALK ABOUT IN THIS UPCOMING BUDGET CYCLE.
DOES THAT NEEDLE MOVE? THE OTHER FUNDS ARE PRETTY SIMPLE AS FAR AS WHAT WE'VE LOOKED AT FOR FUND BALANCES, PRETTY MUCH SITTING AT A STANDARD OF TEN PERCENT THAT WE'VE HAD, WE MADE THESE LEVELS FOR QUITE SOME TIME.
BUT WE THINK MAYBE NOW IS THE TIME AFTER SEEING THE IMPACTS OF A RECESSION RECENTLY.
MAYBE THOSE ARE NOT ADEQUATE FOR SOME OF OUR FUNDS.
[03:45:03]
SO WE'LL BE LOOKING AT THOSE AS WE BUILD OUR FIVE YEAR PLANS OVER THIS NEXT YEAR TO SAY, WELL, REALLY, WHERE SHOULD THESE RESERVES BE FOR THESE ECONOMIC DOWNTURNS? A COUPLE OF AREAS THAT DON'T FIT THE 10 PERCENT ARE HIGHWAY USER FUND.WE DO A LITTLE BIT HIGHER AT 20 PERCENT.
AND OUR WATER SERVICES FUND HAVE A WATER POLICY THAT SAYS 25 PERCENT.
AND SO THAT'S WHERE WE'RE STANDING.
SO THIS BUDGET CYCLE, THE BUDGET TEAM WILL TAKE UP THE TASK OF LOOKING AT FIVE YEAR PLANS, LOOKING AT FUND BALANCES, IF YOU HAVE THOUGHTS ON IT.
PLEASE LET US KNOW AND WE'LL MOVE FORWARD WITH THIS PROCESS OVER THE NEXT SEVERAL MONTHS WITH THE WATER SERVICES.
IS THAT OUR POLICY THAT TWENTY FIVE PERCENT OR IS THAT MANDATED BY THE STATE? THAT'S OUR POLICY.
COUNCIL ADOPTED THE WATER POLICY THAT'S SET THESE OK.
I'M JUST JUST CURIOUS THAT WE HAD TWENTY FIVE PERCENT.
THERE'S TWENTY PERCENT GENERAL FUND WHEN OUR WATER RATES DON'T CHANGE AS MUCH WITH RECESSION.
THIS WAS A GOOD POINT, BUT THIS WAS SOMETHING THAT WAS BROUGHT FORWARD BY OUR WATER SERVICES TEAM WHEN THEY WERE UPDATING A FISCAL POLICY AND THEIR WATER FUND.
THEY LOOKED AT OTHER ORGANIZATIONS OF WHAT THEY'RE DOING AND THEY KIND OF DELIVERED A BENCHMARKING AND THEY DEVELOPED THEIR POLICY TO WHAT THEY SAW THESE FUNDS NEED.
BECAUSE IF YOU THINK ABOUT WATER SERVICES, WATER AND WASTEWATER AND DON'T TOUCH THEIR BIG INFRASTRUCTURE DOLLARS TOO.
SO IT'S NOT ABOUT THAT CONSISTENT READINESS.
IT'S ALSO ABOUT, WELL, WHAT IF YOU HAVE A HUGE WATER LINE FAILURE? YOU KNOW, THOSE ARE BIG DOLLAR TICKETS, SO HAVING A HIGHER RESERVE UNDER THEIR FUND BALANCES MAKES SENSE FOR THOSE TYPES OF AREAS, EVEN THOUGH THE REVENUES ARE STABLE.
I WANTED TO GO BACK, HAD A I HAD A NOTE WE'RE TALKING ABOUT THIS WILL BE IT.
YOU'RE IN TROUBLE, TIME WISE, BUT KEEP GOING.
ALL RIGHT, I'LL TAKE IT WHEN WE'RE TALKING ABOUT RATINGS.
I DID A CALCULATION JUST WHY THESE ARE SO IMPORTANT IF WE MOVE FROM A DOUBLE A AND GOT WORSE.
WE WERE A DOUBLE A MINUS IF WE RECEIVED A WORSE RATING THAN WHAT WE DID AT THE TIME, AND THE INTEREST RATE WENT UP BY POINT THREE PERCENT OF WHAT WE COULD ISSUE ON OUR GENERAL PENSION BONDS.
IT WOULD HAVE COST US ANOTHER $5 MILLION IN INTEREST PAYMENTS OVER THE LIFE OF THAT, THAT BOND.
SO YOU CAN SEE HOW THAT IS A VALUE TO THIS ORGANIZATION AND HOW IT PAYS OFF BY HAVING IT.
I JUST HAD TO GO BACK AND SHARE THAT THE [INAUDIBLE].
HOW DO WE GO UP ON THAT LIST? BOY, I'M TRYING.
NEXT ONE IS FOR GENERAL OBLIGATION DOUBLE A.
THE DOUBLE A-PLUS AND TRIPLE A.
WE ONLY GOT TWO RATINGS [INAUDIBLE] REVENUE, BONDS AND THE CERTIFICATE OF PARTICIPATIONS ARE JUST ONE LOWER DOUBLE-A MINUS.
SO WE'VE GOT A DOUBLE-A PLUS TRIPLE-A.
OH, LET'S GIVE THEM A LITTLE ROUND OF APPLAUSE FOR [INAUDIBLE].
AND WITHOUT FURTHER ADO, LET'S GO AHEAD AND MOVE INTO OUR NEXT SECTION BUDGET EXPECTATIONS OF IMPACTS.
WE HAVE HEIDI HANSEN, GREG CLIFTON, CHRIS RHODE, JANINE GALLAGHER AND BRANDI SUDA.
COME ON DOWN [INAUDIBLE] ON THE PRICE IS RIGHT.
[INAUDIBLE] GOOD AFTERNOON MAYOR, VICE MAYOR COUNCIL MEMBERS, HEIDI HANSEN, ECONOMIC VITALITY DIRECTOR AND ALSO A MEMBER OF THE BUDGET TEAM.
I'M HERE TO SHARE THE FOCUS THE TEAM FOCUS THAT WE SHARED WITH THE ENTIRE ORGANIZATION SO THAT THEY WOULD HAVE BETTER UNDERSTANDING OF WHAT TO DO WHEN PUTTING TOGETHER THEIR BUDGET THIS COMING FISCAL.
SO FIRST, WE SHARED THAT THE NEEDS OF THE ORGANIZATION ARE OUR NUMBER ONE PRIORITY.
HANDS DOWN, WE HAVE MANY AND WE WANTED THE STAFF TO KNOW THAT WE TAKE WHAT THEY'RE ASKING OR WHAT THEY NEED VERY SERIOUSLY.
BUT WITH THAT SAID, WE HAVE MANY CRITICAL ISSUES THAT ARE FACING OUR COMMUNITY.
WE HAVE FLOOD MITIGATION ISSUES THAT WE HAVE TO TAKE CARE OF AND THE LIST GOES ON.
[03:50:01]
YOU KNOW, THESE ISSUES, WE JUST WANTED TO MAKE SURE THAT OUR STAFF IS AWARE OF THE EVERYDAY THINGS THAT YOU'RE WORKING ON.SO BASICALLY, WE LET THEM KNOW WHEN PUTTING TOGETHER THEIR BUDGETS THAT WE WANT THEM TO UNDERSTAND THAT WITH OUR LIMITED FUNDING, THAT WE ASK THEM TO HAVE CAREFUL CONSIDERATION OF WHAT THEY ASK US FOR THIS YEAR.
IF IT IS NOT OF AN URGENT MATTER, DOES IT MEAN THAT WE WANT THEM TO STOP FUNCTIONING AS A DIVISION OR A SECTION? WE JUST WANT THEM TO KNOW THAT IF IT'S A WISH LIST ITEM OR SOMETHING LIKE THAT, IT CANNOT BE ASKED THIS YEAR MORE THAN LIKELY.
WE ALSO SHARED THAT THE RECESSION PLAN THAT GREG JUST SHARED WITH YOU AGAIN AS A RECAP IS AN INVALUABLE TOOL AND NOT TO FREAK OUT ABOUT IT, BUT TO KNOW THAT WE ARE GOING TO CONTINUE TO REFER TO IT IF IF IT'S NEEDED.
AND THIS NEXT SLIDE, WHICH SEEMS A LITTLE BIT BIG, BUT I WILL BREAK IT DOWN FOR YOU.
WE ACTUALLY SHARED THREE KEY FOCUSES FOR THEM THAT WE ARE HONORING COMPENSATION AND BENEFITS.
WE WANT TO ALIGN WITH THE PRIORITY BASED BUDGETING THAT YOU HEARD FROM CHRIS AND SHANE AND THE TEAM.
AND WE ALSO WANTED TO TAKE A LITTLE BIT OF A DEEPER DOVE ON SHARING THE FUNDING REQUEST FOCUSES.
SO A LITTLE BIT ON COMPENSATION AND BENEFITS.
WE WANTED TO LET THEM KNOW THAT WE ARE GOING TO FOCUS FIRST ON CURRENT EMPLOYEES NEEDS VERSUS ADDING NEW POSITIONS.
WE ARE COMMITTED TO FINDING MERITS AND TO MAINTAIN A COMPETITIVE, MARKET BASED PAY.
WE ALSO NEED TO TAKE INTO ACCOUNT THE MINIMUM WAGE ADJUSTMENT.
WE NEED TO CONSIDER ANY BENEFIT CHANGES THAT COME UP.
WE ALSO WOULD LIKE TO CONTINUE TO MAINTAIN A 60 DAY SALARY SUITE WHEN A POSITION IS OPEN.
WE ALSO LOOK TO FUND VACANT AND NEW POSITIONS AT THE MIDPOINT OF OUR RANGE.
AND IT'S IMPORTANT TO NOTE THAT RECRUITMENT IS ONGOING, AS ALL OF YOU KNOW, AND RETIREMENT OF OUR EMPLOYEES IS KEY TO A HEALTHY ORGANIZATION.
SO WE'RE LOOKING AT ALIGNING OUR BUDGET EFFORTS WITH PBB.
WE WOULD LIKE TO MESSAGE THAT THE KEY COMMUNITY PRIORITIES THAT ALL OF YOU'VE IDENTIFIED A LONG TIME AGO ARE WHAT SETS THE FRAMEWORK FOR US PUTTING TOGETHER A BUDGET.
SO WE NEED OUR STAFF TO UNDERSTAND IT'S NOT GOING AWAY.
THESE PRIORITIES SHOW THAT WE LISTENED TO OUR COMMUNITY AND KNOW WHAT NEEDS TO BE ADDRESSED.
ONE OF THE AREAS WE WANT TO HELP GAIN SOME TRACTION ON THIS YEAR IS BUDGETING ANYTHING THAT'S ONE TIME.
WE WANT TO GET IT TO AN ONGOING STATUS.
DON'T FREAK OUT, 3.3 MILLION IN ONE TIME REQUESTS.
THAT NEED TO EVENTUALLY GET TO AN ONGOING STATUS.
SO WE ARE COMMITTED AS A BUDGET TEAM TO TRY TO PUT A DENT IN THAT BY GETTING TWENTY FIVE PERCENT OF THAT FROM ONE TIME INTO ONGOING THIS CURRENT FISCAL AS FAR AS AN OVERALL FOCUS TO THE BUDGET THIS YEAR.
WE ARE GOING TO BE LOOKING AT THOSE INFRASTRUCTURE NEEDS.
YOU HEARD ABOUT THOSE IN SEPTEMBER.
IT WASN'T A WASTE OF YOUR TIME.
THEY WERE DEFINITELY STILL ON OUR RADAR.
BUT WE'RE ALSO GOING TO CONTINUE TO LOOK AT PBB OVERALL AND NOTE THAT PERSONNEL REQUESTS THAT RANK IN THE LOWER QUADRANTS THREE AND FOUR, THE PBD MODEL, THEY MIGHT NOT BE CONSIDERED IF MONEY IS NOT AVAILABLE, AND WE ARE DEFINITELY MADE THIS KNOWN TO OUR TEAM.
[INAUDIBLE] YES, I'M GOING TO LET HEIDI, GARY OR BRANDI SPEAK TO THAT.
SO 60 DAYS SALARY SWEEP IS WHAT WE DO WITH ANY VACANT POSITION THAT COMES OPEN IS WE HOLD THAT POSITION FOR 60 DAYS BEFORE FILLING.
AND WE USE THAT TO HELP BALANCE ONGOING IN OUR GENERAL FUND BUDGET MIC] WHICH IN MOST CASES IT TAKES A 60 DAYS PLUS TO FILL THOSE POSITIONS.
AND IF I COULD ADD, IT DOESN'T MEAN THAT WE WON'T BEGIN RECRUITING ALL THE TIME.
IT JUST MEANS THAT WE HAVEN'T WE WON'T HAVE FILLED IT BETWEEN THAT TIME.
BUT WE ALSO WANTED TO SHARE THAT WHEN ADDING POSITIONS, WE ARE OPEN TO ADDING CONTRACTORS.
SO FOR INSTANCE, IF THERE IS A PROPOSITION OUT THERE LIKE PROPOSITION 419, WHERE WE GET A GRANT AND WE HAVE MONEY TO BE ABLE TO AFFORD THAT POSITION FOR A CERTAIN TIME PERIOD, WE ARE DEFINITELY OPEN TO THAT AND WE HAVE A VERY CREATIVE STAFF THAT NEVER LETS US FORGET WHERE THE MONEY IS AND HOW THEY WOULD LIKE IT TO BE USED.
AND THEN LAST BUT NOT LEAST, WE'LL BE TRACKING ALL REQUESTS THAT HAVE ANYTHING
[03:55:02]
TO DO WITH THE CARBON NEUTRALITY PLAN.OUR TEAM CONTINUES TO WORK WITH NICOLE AND HER STAFF.
AND THAT'S PROBABLY A KEY REASON WHY NICOLE IS PART OF OUR PROJECT TEAM AS WELL SO THAT WE CAN HAVE THESE ONGOING CONVERSATIONS.
SO I KNOW I RAMBLED REALLY FAST, BUT I DIDN'T WANT HER TO TELL ME THAT I DIDN'T HAVE THE TIME.
[INAUDIBLE] ARE THERE ANY QUESTIONS BESIDES WHAT COUNCIL MEMBER MCCARTHY? [INAUDIBLE] OKAY.
SOMEBODY IS AFTER ME, AND I BELIEVE IT'S ALL RIGHT.
[INAUDIBLE] AND IT'S ACTUALLY GOT MULTIPLE PEOPLE, SO WE'RE KIND OF RECYCLING OUT HERE.
TALKING ABOUT THE MINIMUM WAGE STATE ASSESSMENT.
YOU REMEMBER BACK IN 2006, STATEWIDE THERE WAS A BALLOT MEASURE PASSED, IT WAS PROP 22 AT THE TIME.
IT RAISED THE STATE'S MINIMUM WAGE UP TO WHAT IT WAS BEFORE.
IT ALSO HAD A PROVISION THERE THAT ALLOWED MUNICIPALITIES TO SET THEIR OWN MINIMUM WAGE AS LONG AS IT WAS HIGHER THAN THE STATEMENT.
SO YOU COULDN'T GO, THE YOU COULD GO HIGHER.
THAT WAS PASSED 15 YEARS AGO IN 2006.
THE CITY OF FLAGSTAFF DID THAT FIVE YEARS AGO WITH OUR OWN PROP FOUR ONE FOUR, WHICH HAS OUR MINIMUM WAGE AT $15 AN HOUR.
IT'LL GO TO $15.50 IN JANUARY.
NOW, TWO YEARS AGO, IN 2019, THE STATE LEGISLATURE, SO NOT THROUGH THE INITIATIVE PROCESS, BUT THROUGH THEIR ROLE IN THE PROCESS PASSED HOUSE BILL 2756, WHICH ALLOWS THE STATE TO ASSESS CITIES FOR THAT DIFFERENCE.
SO IF A CITY HAS A MINIMUM WAGE THAT'S HIGHER THAN THE STATE MINIMUM WAGE, THEY CAN SEND AN ASSESSMENT TO THE CITY ALONG WITH THEIR BUDGET PROCESS TO RECOUP THOSE COSTS TO THE STATE.
THAT WAS FIRST NOTING THAT IN OUR OWN CITY CODE, IN THE LANGUAGE FROM PROP 414, WE HAVE AN EXEMPTION FOR THE STATE AND THE FEDERAL GOVERNMENT.
SO ESSENTIALLY, THEY'RE NOT INCLUDED IN THE DEFINITION OF EMPLOYER WHEN IN THE DEFINITION THEY'RE EXPLICITLY EXCLUDED, MEANING THAT STATE AGENCIES, AS WELL AS FEDERAL AGENCIES AND A FEW OTHER ENTITIES OF THE STATE AND FEDERAL GOVERNMENT ARE NOT SUBJECT TO OUR HIGHER MINIMUM WAGE.
SO IF YOU'RE WORKING FOR AND ARE YOU TO BE SUBJECT TO THE STATE MINIMUM WAGE, NOT TO OUR MINIMUM WAGE? NOW, WE'VE KNOWN SINCE THEY PASSED THAT BILL A COUPLE OF YEARS AGO BEFORE WE MOVE ON TO THE NEXT SLIDE.
MY BAD, SO WE'VE BEEN BUDGETING FOR THIS IN CASE IT HAPPENED.
SO FOR THE FIRST FISCAL YEAR, WE ESTIMATED THAT IT COULD BE $671,000.
WE NEVER RECEIVED AN ASSESSMENT FOR THAT YEAR.
NEXT YEAR, WE BUDGETED ABOUT $1.2 MILLION.
AGAIN, THAT WAS NOT ASSESSED TO US, SO WE NEVER RECEIVED THAT BILL FROM THE STATE.
AND THEN EARLIER THIS YEAR, ON SEPTEMBER 29TH, WE DID RECEIVE AN ASSESSMENT FROM THE STATE OF ARIZONA FOR $1.1 MILLION.
SO THIS WAS THE FIRST TIME AFTER THEY HAD PASSED THE BILL, THEY ACTUALLY SENT US THE BILL.
BUT AS YOU WERE PROBABLY AWARE, THERE HAS BEEN A LAWSUIT OVER THIS LONG TIME SINCE AND WE HAVE SUED THE STATE OF ARIZONA OVER THIS ASSESSMENT.
THERE WAS A HEARING SHORTLY AFTER IT WAS ASSESSED IN OCTOBER, AND WE RECEIVED A PRELIMINARY INJUNCTION THAT SAYS THE STATE CANNOT COLLECT THAT SYSTEM.
SO AS OF RIGHT NOW, THEY CANNOT COLLECT THAT ASSESSMENT.
AND THE RULING WAS MADE FOR TWO REASONS.
ONE IS THAT THE ASSESSMENT WAS TOO LATE FOR THE CURRENT FISCAL YEAR.
WE SHOULD IN SEPTEMBER, HE SAID.
THAT WAS TOO LATE AND BECAUSE WE HAVE THAT EXEMPTION OF THE STATE WHERE THEY, AS AN EMPLOYER ARE NOT SUBJECT TO THE CITY'S MINIMUM WAGE, THE ONLY COST TO THEM WERE INDIRECT.
THEY'RE NOT PAYING THEIR EMPLOYEES OR [INAUDIBLE] EMPLOYEES MORE BECAUSE WE'RE GOING TO WAIT.
SO ANY COSTS THEY HAVE RULED TO BE INDIRECT COSTS, WHICH WOULD NOT ALLOW THEM TO ASSESS US FOR THEM.
THIS MATTER IS BEING APPEALED, SO IT IS ONGOING.
THERE IS NOT A NOT A PERMANENT RESOLUTION YET, BUT THIS IS WHERE WE ARE RIGHT NOW.
SO AS WE GO FORWARD WITH THIS LAWSUIT, WE'LL SEE WHAT HAPPENS, BUT WE DO NEED TO CONTINUE TO BUDGET ASSESSMENT BECAUSE WE EXPECT TO RECEIVE THEM AGAIN IN THE FUTURE UNLESS
[04:00:05]
WE SEE A MORE PERMANENT RULING IN OUR FAVOR.AND IF THEY GET IT TO US ON TIME IN THE FUTURE AND THE TRUTH OF THOSE INDIRECT COSTS STILL COUNT, WE COULD BE FORCED TO PAY THAT.
SO WE ARE GOING TO CONTINUE TO BUDGET FOR THAT IN FUTURE YEARS.
ANY QUESTIONS ON THAT MATTER? OK.
SO KEEP AN EYE ON THAT AS IT MOVES FORWARD THROUGH THE COURT SYSTEM IN THE FUTURE YEARS, BUT WE'RE ALSO PLANNING TO KEEP IT UP FOR NOW.
[INAUDIBLE] I'M SORRY, I THOUGHT I'D JUST ASK IT.
CAN YOU SHARE WITH US THE COURT COSTS AND FEES ASSOCIATED WITH THE LITIGATION AND THOSE COME FROM? I DON'T HAVE THAT NUMBER [INAUDIBLE] STERLING, I DO NOT HAVE THOSE CARDS EITHER.
I DON'T HAVE THOSE COURT COSTS FOR YOU, BUT I CAN GET THOSE FOR YOU AND AS WELL.
WE'LL WE PLAN ON HAVING AN UPDATE SHORTLY IN AN EXECUTIVE SESSION WITH YOU TOO ON THE CASE.
CAN I ASK IF I CAN'T JUST SAY SO? IT'S FINE.
I'M JUST CURIOUS FOR FOR FOR PUBLIC CONSUMPTION.
ARE WE GOING TO BE LOOKING FOR THE STATE TO ABSORB THOSE COSTS? IF WE WIN THIS APPEAL.
SO THAT WOULD BE A QUESTION APPROPRIATE FOR EXECUTIVE SESSION I'LL GO AHEAD AND UPDATE YOU THERE.
IF I MAY JUST ADD ONTO CHRIS'S POINT, OR MANY POINTS THAT HE MADE.
WE, OF COURSE, NEED TO CONTINUE WITH THE BUDGET AND IT GOES WITHOUT SAYING, BUT I WANT TO SAY THE FACT THAT WE HAVE THE BUDGET FOR THIS MEANS OTHER THINGS ARE NOT BEING BUDGETED FOR WITHIN WITHIN THIS BUDGET PROCESS THAT HAS HAD IMPACT IN THE PAST, WE'VE HAD TO FOREGO CERTAIN EXPENDITURES THAT THAT WERE QUITE NEEDED.
SO THIS CONTINUES TO HAVE IMPACT ON US, EVEN THOUGH WE HAD A FAVORABLE RULING.
YOU KNOW, IT IS SUBJECT TO APPEAL AND WE JUST NEED TO STAY CONSERVATIVE AND BUDGET ACCORDINGLY SO.
GOOD AFTERNOON, MAYOR AND COUNCIL BRANDI SUDA SERVING AS YOUR INTERIM, [INAUDIBLE] HUMAN RESOURCE AND RISK MANAGEMENT DIRECTOR.
WE ALSO HAVE JEANNIE GALLAGHER ON THE LINE IF WE HAVE QUESTIONS FOR HER, BUT I WILL BE PRESENTING MOST OF THE PRESENTATION TODAY.
SO MY PRESENTATION REGARDING COMPENSATION IS GOING TO HIT ON FOUR KEY ELEMENTS.
IN COUNCIL'S COMMITMENT TO MAKING EMPLOYEE COMPENSATION A PRIORITY.
THIS PRESENTATION IS GOING TO HELP PROVIDE AN OVERALL UNDERSTANDING OF OUR RECOMMENDATIONS TO ENSURE A HEALTHY COMPETITIVE COMPENSATION PLAN AND THE OVERALL BUDGET IMPACT.
THE FIRST ELEMENT IS THE MINIMUM WAGE INCREASE AS REQUIRED BY CITY ORDINANCE.
UM, ELEMENT TWO IS MERIT INCREASES.
THESE ARE BUDGETED AND IS PART OF LAST YEAR'S COMMITMENT TO EMPLOYEES FOR ONGOING MERIT.
THE NEXT TWO ITEMS, MARKET ADJUSTMENTS AND COMPRESSION ARE ADDITIONAL RECOMMENDATIONS TO ENSURE WE MAINTAIN A HEALTHY COMPENSATION PLAN.
ALL FOUR ELEMENTS ARE VERY IMPORTANT TO THE OVERALL SUCCESS AND CONTINUATION OF A HEALTHY PAY PLAN FOR THE CITY.
THE FIRST ELEMENT MINIMUM WAGE, NEXT MONTH, THE CITY'S MINIMUM WAGE WILL INCREASE TO 15 50 AND EACH YEAR FOLLOWING IN JANUARY, THE CITY'S MINIMUM WAGE MUST INCREASE BY THE CONSUMER PRICE INDEX, OR CPI, AND BE AT LEAST TWO DOLLARS ABOVE THE STATE MINIMUM WAGE.
SO THE EXACT CPI INCREASE FOR JANUARY OF 2023 WILL NOT BE KNOWN UNTIL OCTOBER OF 2022.
THEREFORE, WE ARE PROVIDING TO FORECASTS A MODEST THREE PERCENT AND A FIVE PERCENT BASED ON CURRENT INFLATION TRENDS.
BOTH FORECASTS INCLUDE MAINTAINING EMPLOYEE COMPA-RATIOS TO WAKE
[04:05:07]
COMPRESSION AND FURTHER NEGATIVELY IMPACTING RECRUITMENT AND RETENTION.AND AS A REMINDER, COMPA-RATIO IS THE EMPLOYEES RELATIVE POSITION IN THEIR ASSIGNED PAY RANGE.
DOES THAT MAKE SENSE? SO IF I'M 10 PERCENT INTO MY PAY RANGE, WHEN WE LOOK AT WHAT THOSE IMPACTS ARE, WE WANT TO MAINTAIN THAT EMPLOYEES 10 PERCENT INTO THE PAY RANGE.
SO HOW DOES THE CPI INCREASE TO MINIMUM WAGE IMPACT THE CITY'S PAY PLAN? SO AT THREE PERCENT, CPI WOULD INCREASE THE CITY'S MINIMUM WAGE TO $16 AN HOUR.
AND A FIVE PERCENT CPI INCREASE WOULD INCREASE THE MINIMUM WAGE TO 16 30.
AND WITHOUT GETTING INTO ALL OF THE LITTLE DETAILS OF THIS.
BUT THE KEY TAKEAWAY IN THIS IS IS THAT WE SEE ANYTHING GREATER THAN A THREE PERCENT INCREASE IN CPI.
WE'LL HAVE THIS WILL HAVE A SIGNIFICANT INCREASE ON THE CITY'S PAY PLAN AND REQUIRE US TO MAKE MODIFICATIONS TO THE PAY PLAN TO MAINTAIN THOSE SPREADS IN THOSE LOWER PAY RANGES.
SO AGAIN, IT IS KEY THAT WE CONTINUE TO MAINTAIN THE CURRENT COPPER RATIO TO AVOID COMPRESSION.
SO THIS NEXT SLIDE KIND OF SHOWS AN EXAMPLE OF HOW A GREATER THAN THREE PERCENT CPI INCREASE WHILE MAINTAINING SOME SPREAD BETWEEN THOSE LOWER RANGES COULD BE ACCOMPLISHED IN THE CITY'S REGULAR PAY PLAN.
AS YOU CAN SEE, WE HAVE OUR BUT BUT YOU CAN SEE ON THAT FIRST TABLE KIND OF TALKS ABOUT HOW OUR CURRENT PAID RATE AND THEN THE SECOND TABLE TALKS ABOUT HOW WE WOULD LOOK AT REVISING IT, ASSUMING WE'RE SEEING A GREATER THAN 16, 16, 30 OR 16 13 MINIMUM WAGE.
AND SO MORE INFORMATION TO COME AS WE KNOW MORE INFORMATION ON THAT.
SO THIS FINAL SLIDE ON MINIMUM WAGE KIND OF ILLUSTRATES THOSE COSTS ESTIMATES WERE THAT THREE PERCENT AND FIVE PERCENT CPI INCREASE.
AND AS YOU CAN SEE, THAT FIVE PERCENT INCREASE HAS A SIGNIFICANTLY HIGHER ALMOST SIX TIMES GREATER COST THAN THE THREE PERCENT.
AND THAT'S JUST REALLY DUE TO MAINTAINING THOSE COMPA-RATIOS AND MAINTAINING SPREADS BETWEEN THE LOWER PAY RANGES.
MOVING ON TO THE SECOND ELEMENT OF THE COMPENSATION RECOMMENDATIONS MERIT.
AT A COST OF JUST OVER $2 MILLION.
THE ANNUAL THE ANNUAL MERIT ARE BUDGETED AND FORECASTED IN THE CITY'S FIVE YEAR PLANS AS A COMMITMENT TO EMPLOYEES AND PART OF THE COMPENSATION STUDY IMPLEMENTATION.
WE WERE REINSTATED AND ON JUNE 1ST OF 2021.
SO JUST A REMINDER WE DO HAVE THESE BUDGETED IN OUR FIVE YEAR PLANS.
AND THIS ESTIMATE INCLUDES A THREE PERCENT INCREASE FOR EMPLOYEES IN THE REGULAR PAY PLANS.
THIS DOES ASSUME NO LUMP SUM PAYMENTS FOR ANY EMPLOYEES THAT ARE AT OR ABOVE THE MAXIMUM OF THE PAY RANGE.
AND IT ALSO ASSUMES THAT FIVE PERCENT CPI FOR MINIMUM WAGE AND IMPLEMENTING THAT SAMPLE PLAN PROVIDED IN THE PREVIOUS SLIDE.
IT ALSO INCLUDES STEP INCREASES FOR EMPLOYEES IN OUR STEP PAY PLANS FOR FIRE, POLICE AND WATER SERVICE OPERATORS.
HMM, THOSE STEP INCREASES DO VARY IN PERCENTAGE.
BY STEP AND BY POSITION, USUALLY SOMEWHERE BETWEEN THREE AND SEVEN PERCENT AND EMPLOYEES AT THE MAXIMUM STEP WOULD NOT RECEIVE AN INCREASE AS STEP PLANS ARE DESIGNED TO MOVE EMPLOYEES MORE QUICKLY THROUGH THEIR PAY RANGES.
OUR THIRD KEY ELEMENT AND RECOMMENDATION IS MARKET ADJUSTMENTS.
THIS WOULD BE AN ANNUAL ALLOCATION TO MARKET ADJUSTMENTS.
AND THIS ALLOCATION TO MARKET ADJUSTMENTS IS KEY TO MAINTAINING A COMPETITIVE, MARKET BASED PLAN.
AND HOW THIS WOULD WORK IS WE WOULD ANNUALLY SELECT A SAMPLE OF POSITIONS THROUGHOUT THE ORGANIZATION TO SURVEY AND ADJUST THEIR PAY RANGES ACCORDINGLY.
WE WOULD PRIORITIZE POSITIONS FOR MARKET ADJUSTMENTS BASED ON THOSE IDENTIFIED THROUGHOUT THE YEAR THAT MAY BE LAGGING IN MARKET OR MAY HAVE HAD ADDITIONAL CHALLENGES IN RELATION TO RECRUITMENT AND RETENTION.
THIS IS DIFFERENT THAN A COLA AND IS NOT AN ACROSS THE BOARD INCREASE, IF WE
[04:10:05]
ARE TAKING THE RIGHT STEPS FOR EMPLOYEE COMPENSATION, COLA ADJUSTMENTS ARE USUALLY NOT NEEDED ONLY IN EXTRAORDINARY CIRCUMSTANCES.FOR ONE, COLA ADJUSTMENTS ARE VERY EXPENSIVE AND TWO, THEY TEND TO DILUTE FROM OUR KEY PRIORITY AREAS.
CAN YOU EXPLAIN THE SAMPLING PROCESS A LITTLE BIT? IS IT AGAIN, IS IT A RANDOM SAMPLING, HOW DOES THAT WORK? SO FIRST WE WOULD.
THE FIRST WE WENT TO GO THROUGH AND PICK THOSE KEY POSITIONS THAT WE REALLY WANT TO FOCUS ON.
SO MAYBE, YOU KNOW, IF WE SEE A POSITION THAT WE KNOW JUST BASED ON WHAT WE'RE SEEING IN THE COMMUNITY THAT WE'RE SEEING HUGE MARKET OR THAT WE'RE BEHIND IN MARKET ON THOSE, WE MIGHT PICK THOSE.
WE MIGHT ALSO PICK POSITIONS THAT WE'RE REALLY STRUGGLING IN RECRUITMENT AND RETENTION AND ANALYZE THOSE.
AND THEN FOLLOWING THAT, WE WOULD ALSO DO A RANDOM SAMPLE.
SO IT WOULD BE A COMBINATION OF ALL THREE OF THOSE AREAS.
IT'S JUST STANDARD YEARLY PRACTICE.
YES, YES, SO WHAT WE'RE RECOMMENDING IS THAT WE ANNUALLY ALLOCATE ABOUT ONE TWO FIVE PERCENT OF THE CITY'S ANNUAL SALARY TO THIS PROCESS AS A STARTING POINT.
AND THAT ESTIMATED COST FOR THAT FIRST YEAR OF ABOUT ONE HUNDRED AND FORTY THREE THOUSAND DOLLARS.
AND ANY UNUSED FUNDS FROM ONE YEAR WOULD ROLL OVER INTO THE NEXT YEAR TO PROVIDE ADDITIONAL FUNDING FOR THIS EFFORT.
THE LAST KEY ELEMENT AND RECOMMENDATION FOR MY PRESENTATION IS COMPRESSION.
AND JUST AS A REMINDER, COMPRESSION IS WHEN EMPLOYEES DO NOT ADVANCE IN THE PAY PLAN YEAR OVER YEAR DESPITE 10 YEARS.
SO THIS EFFORT WOULD HELP ADDRESS SOME OF THE CHALLENGES WE ARE SEEING AROUND MAKING COMPETITIVE OFFERS TO NEW EMPLOYEES WITH EXPERIENCE ABOVE OUR CURRENT EMPLOYEES WHO HAVE SIMILAR EXPERIENCE AND IN SIMILAR POSITIONS.
AND SO OUR RECOMMENDATION FOR A COMPRESSION ADJUSTMENT IS TO FOCUS ON THE REGULAR PAY PLAN EMPLOYEES AS EMPLOYEES IN THE STEP PATRONS BENEFIT FROM MOVING MORE QUICKLY THROUGH THEIR PAIN.
SO HERE IN THIS NEXT KIND OF TALKS ABOUT HEAD OF A SAMPLE OF HOW WE COULD IMPLEMENT A COMPRESSION ADJUSTMENT.
SO WHAT WE WOULD DO IS WE WOULD LOOK AT MAKING A SIMILAR ADJUSTMENT THAT WE MADE BACK IN 2020 ONE AS PART OF OUR COMPENSATION IMPLEMENTATION, AND WE WOULD UTILIZE THE COMBINATION OF YEARS OF SERVICE RATIOS BY QUARTILES AND THEN APPLY A PERCENTAGE ADJUSTMENT INCREASE THAT WOULD INCREASE AS INCREASED YEARS OF SERVICES SERVICE FOR THAT EMPLOYEE.
WE WOULD ALSO INCLUDE EMPLOYEES OVER THE MIDPOINT, UNLIKE THE PREVIOUS COMPRESSION.
I GET COMPRESSION AND COMPASSION MIXED UP SOMETIMES.
THE PROJECTED ESTIMATE FOR THIS IS APPROXIMATELY $200000.
IT WOULD BE OUR RECOMMENDATION THAT THIS IS THE FINAL YEAR OF A COMPRESSION ADJUSTMENT, ASSUMING THE CITY MAINTAINS ALL OTHER COMPACTION OR COMPENSATION ELEMENTS AS PRESENTED.
AND IN SUMMARY, HERE IS A COST ESTIMATE ILLUSTRATION OF THE FOUR ELEMENTS OF THE COMPENSATION PRESENT PRESENTED THE FOUR ELEMENTS OF.
SORRY, ILLUSTRATED THE FOUR ELEMENTS OF COMPENSATION PRESENTED TODAY.
ALL FOUR ELEMENTS ARE NECESSARY TO MAINTAINING A HEALTHY.
COMPENSATION PLAN AND ARE THEREFORE IMPORTANT IN MAINTAINING COUNCIL'S COMMITMENT TO EMPLOYEE COMPENSATION AS A PRIORITY.
SO THAT CONCLUDES MY PRESENTATION AND I'M AVAILABLE FOR ANY QUESTIONS.
ARE THERE ANY QUESTIONS EITHER FOR WHAT HEIDI PRESENTED OR BRANDY OR CHRIS? OK.
NOT ONLY DID YOU MAKE IT IN TIME, BUT YOU MADE IT UNDERSIDE SO HIGH FIVES YOU
[04:15:01]
FOR THE HOURS OF WORK, IT TOOK TO GET THAT DATA TOGETHER AND PRESENT IT HERE.SO I'D LOVE TO ASK THE COUNCIL MEMBER IN THERE IF YOU GUYS WANT TO TAKE A QUICK LITTLE BREAK SINCE WE HAVE A FEW MINUTES AND COME BACK HERE.
AT 1:45, SO 10 MINUTES TO RUN TO THE RESTROOM THAT STRETCH LEGS.
1:45 ON THE DOT AND WE'LL GET STARTED.
FORTY FIVE, THEY MADE UP GREAT TIME WITH OUR LAST PRESENTER, SO THANK YOU VERY MUCH FOR BEING CONCISE AND CLEAR.
BREVITY IS A GREAT SKILL AND WE ARE NOW GOING TO HEAD INTO FEDERAL FUNDING.
ARE YOU PRESENTING THIS PRIMARILY ON YOUR OWN OR DO YOU HAVE OTHER PRESENTERS? AND I WILL INTRODUCE EVERYONE WHO'S JOINING ME.
AND KATIE, MAYOR AND COUNCIL, THE AND SUSTAINABILITY DIRECTOR, REALLY PLEASED TO BE HERE AS THE NEWEST MEMBER OF THE BUDGET TEAM.
I AM HERE WITH A FANTASTIC TEAM OF FOLKS THIS AFTERNOON TO DISCUSS THE FEDERAL FUNDING LANDSCAPE, AND I KNOW THAT MANY OF US ARE INCREDIBLY EAGER TO LEARN MORE ABOUT THE OPPORTUNITIES THAT ARE COMING FORWARD FOR OUR COMMUNITY AND VERY IMPORTANT OPPORTUNITIES FOR OUR COMMUNITY.
EVERYONE ELSE IS VIRTUAL, BUT I'M HERE WITH BOB HOLMES, OUR FEDERAL LOBBYIST.
BERNIE HELMICK, BRIAN GALL, STACEY, BRECHLER-KNAGGS, MORGAN, MELANIE AND SARAH LANGLEY.
I PROMISE YOU THAT WE HAVE DONE A DRY RUN AND WE'RE GOING TO STICK TO OUR ALLOTTED TIME.
WITHOUT FURTHER ADO, I WOULD LIKE TO INTRODUCE BOB HOLMES.
BOB, ARE YOU WITH US? I AM THANK YOU SO MUCH, I REALLY APPRECIATE YOUR.
APPRECIATE YOUR TIME AND AND IT'S GREAT TO BE HERE.
I'M BOB HOLMES, OBVIOUSLY THE LOBBYIST FOR THE FOR THE CITY, AND WE DID DO A DRY RUN AND I PROMISE WE'LL BE NICE AND QUICK.
SO YOU GUYS CAN ASK LOTS OF GOOD QUESTIONS AND WE STAND READY TO ASSIST YOU AS ALWAYS.
AND WE WANT JUST WANTED TO QUICKLY AND WE'LL FOCUS A LOT TODAY ON THE IRJA.
BUT WE WANTED TO KIND OF GIVE YOU AN OVERVIEW OF ALL THE STIMULUS FUNDING, ALL THE COVID PACKAGES THAT HAVE COME THROUGH.
SO YOU CAN HAVE A BETTER UNDERSTANDING OF WHERE WE ARE.
AND ANY QUESTIONS THAT YOU MIGHT HAVE.
SO, YOU KNOW, OBVIOUSLY WITH THE PANDEMIC NOW ALMOST IN YEAR TWO OF IT IN MARCH, CONGRESS MARCH OF 2020 MARCH 2020, THE CONGRESS PASSED THE CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY, OR THE CARES ACT, THAT PROVIDED THE FIRST INITIAL FUNDING.
IT ALSO PROVIDED THE FIRST FUNDS EVER TO STATE AND LOCAL GOVERNMENTS.
AND IT WAS IT WAS REALLY HELPFUL AMID A PANDEMIC WHEN EVERYTHING SHUT DOWN AND WE ARE ABLE TO FUND THINGS LIKE POLICE, FIRE, LIBRARIES AND COURTS.
WE ALSO GOT $18 MILLION IN FUNDING FOR THE AIRPORT.
BARNEY AND BRYAN WILL BE TALKING A LITTLE BIT ABOUT THAT LATER.
SO WE REALLY, REALLY APPRECIATE ALL THAT THE CITY HAS DONE TO ALLOCATE THOSE FUNDS.
ALSO, THE ARPA OR THE AMERICAN RESCUE PLAN ACT PROVIDED ABOUT $13 MILLION TO THE CITY OF FLAGSTAFF.
THE FIRST ALLOCATION HAS ALREADY COME.
THE SECOND ALLOCATION WILL BE COMING IN MAY-JUNE TIME FRAME THIS YEAR AND WE WILL HAVE UNTIL MAY.
WE'LL HAVE UNTIL DECEMBER 2026 TO SPEND THOSE.
AND THEN MOST RECENTLY, AND WE'LL WE'LL FOCUS IN ON THIS A LITTLE BIT MORE IN A FEW MINUTES.
IS THE IIJA WAS PREVIOUSLY PREVIOUSLY CALLED THE BITF THE BIPARTISAN INFRASTRUCTURE FRAMEWORK.
BUT THE IT'S NOW KNOWN AS THE INFRASTRUCTURE AND INVESTMENT INFRASTRUCTURE INVESTMENT AND JOBS ACT THAT PROVIDES ONE POINT TWO TRILLION DOLLARS IN AUTHORIZATION AND APPROPRIATIONS, FIVE HUNDRED AND FIFTY BILLION IN APPROPRIATIONS.
SO WE'LL TALK A LITTLE BIT ABOUT THAT AND WE LOOK FORWARD TO A GOOD CONVERSATION WITH YOU.
THANKS, NICOLE AND THE TEAM FOR INVITING ME AND HAVING ME PARTICIPATE.
WITH THAT, I WILL TURN IT OVER TO BARNEY AND BRIAN TO TALK A LITTLE BIT ABOUT AIRPORT FUNDING.
[04:20:02]
AND GOOD AFTERNOON, MAYOR, VICE MAYOR.COUNCIL MEMBERS, BARNEY HELMICK WITH THE AIRPORT.
AND I'M GOING TO GIVE YOU A LIST OF THE AIRPORT CARES ACT GRANTS THAT WE'VE EITHER RECEIVED OR ARE ABOUT TO RECEIVE.
THE CARES ACT AIRPORT GRANTS ARE FOR ELIGIBLE U.S.
AIRPORTS TO PREVENT, PREPARE FOR AND RESPOND TO CORONAVIRUS IMPACTS, INCLUDING SUPPORT FOR CONTINUING AIRPORT OPERATIONS.
AND WHAT YOU'RE GOING TO SEE HERE IS THE FAA IS FOR FEDERAL AVIATION ADMINISTRATION, AND THE NUMBER OF ADJACENT TO IT IS THAT NUMBER OF THE GRANT THAT WE HAVE RECEIVED.
FOR EXAMPLE, FAA 45 IS THE 45TH FAA GRANT WE'VE RECEIVED.
IT WAS FOR EIGHTEEN POINT ONE MILLION FOR OPERATIONAL MAINTENANCE EXPENSES OR DEBT SERVICE.
FAA 46 WAS FOR 1.4 MILLION FOR OPERATIONAL AND MAINTENANCE EXPENSES OR DEBT SERVICES.
FAA FORTY SEVEN WAS TWENTY FIVE THOUSAND SIX HUNDRED AND SEVENTY TWO DOLLARS AND THAT'S FOR CONCESSIONS RELIEF FOR OUR CONCESSIONAIRES INSIDE THE TERMINAL BUILDING.
FAA 48, WAS ONE POINT NINE MILLION FOR OPERATIONAL MAINTENANCE EXPENSES OR DEBT SERVICES, AND FAA 849.
WE WILL BE BRINGING TO COUNCIL LATER.
IT IS FOR AN ADDITIONAL 102 THOUSAND SIX HUNDRED AND EIGHTY SEVEN DOLLARS FOR CONCESSIONS RELIEF.
AND NOW I'D LIKE TO TURN IT OVER TO BRIAN GALL, THE AIRPORT PROGRAM'S MANAGER.
HELLO, MAYOR, VICE MAYOR AND COUNCIL, I'M BRIAN GALL, PROGRAM MANAGER OF THE FLAGSTAFF AIRPORT.
AND I'D LIKE TO TAKE A FEW MINUTES TO GO INTO A LITTLE BIT MORE DEPTH ON THAT FAA 45 GRANT THAT MARTY JUST MENTIONED, WHICH IS THE ORIGINAL EIGHTEEN POINT ONE MILLION DOLLARS CARES ACT GRANT.
THAT GRANT WAS THE FIRST GRANT THE AIRPORT RECEIVED AS PART OF THE CORONAVIRUS RELIEF FUNDING.
IT WAS ISSUED IN FEBRUARY OF 2020 AS A FOUR YEAR REIMBURSABLE AGREEMENT, SO WE HAVE A FOUR YEAR PERIOD UNTIL FEBRUARY 2024 TO SPEND THOSE FUNDS.
ON THE RIGHT YOU'LL SEE THE PRIORITIZATION OF FUNDING THAT'S BEEN DONE WHERE THOSE DIFFERENT FUNDS ARE GOING TO GO, AND THAT PIE CHART THERE, THE BLUE AREA.
FORTY THREE PERCENT OF THE GRANT HAS BEEN SHOWN FOR PERSONNEL COSTS.
THE ORANGE AREA, 20 PERCENT, IS DEDICATED TO CONTRACTUAL AND COMMODITY COSTS AND THE GRAY AREA, THIRTY SEVEN PERCENT OF THAT GRANT IS FOR EQUIPMENT AND MAINTENANCE OPERATING COSTS .
AS OF SEPTEMBER 30TH OF THIS YEAR, THREE POINT EIGHTY SIX MILLION OF THAT GRANT HAS BEEN SPENT.
ITEMS THAT THAT FUNDING HAS GONE TOWARDS HAS BEEN AIRPORT PERSONNEL OPERATING COSTS, AND THAT INCLUDED THE COSTS THAT WERE INCURRED AS A RESULT OF THE NINE MONTHS OF RENT ABATEMENT FOR AIRPORT TENANTS THAT OCCURRED AT THE BEGINNING OF THE PANDEMIC.
WE DO HAVE SOME ONGOING PROJECTS TO THIS GRANT IS FUNDING.
CURRENTLY, THERE'S A THREE HUNDRED AND FIFTY THOUSAND DOLLAR PROJECT FOR AIRCRAFT HANGAR AND SHADE MAINTENANCE THAT WE'RE IN THE MIDDLE OF AND ANOTHER $160000 PROJECT FOR AIRFIELD MAINTENANCE.
THOSE ARE THE ONES THAT ARE CURRENTLY IN PROGRESS.
WE ARE PLANNING ON A NUMBER OF LARGER PROJECTS THAT ARE GOING TO SPEND A PORTION OF THE REMAINDER OF THAT GRANT.
THOSE PROJECTS ARE FOR ITEMS SUCH AS THE TERMINAL HOLE, ROOM EXPANSION AND EXPANSION TO THE AIRLINE COUNTER AREA OF THE TERMINAL.
ADDITIONAL FACILITIES MAINTENANCE PROJECTS AS WELL AS A TERMINAL PARKING LOT, MAINTENANCE PROJECTS AND ADDITIONAL AIRFIELD AND HANGAR MAINTENANCE PROJECTS.
THOSE WOULD BE NEW PHASES OF THOSE TWO ONGOING PROJECTS I MENTIONED BEFORE.
SOME AND THAT, AS I MENTIONED, IS THE UPDATE FOR THAT FIRST CARES GRANT, WHICH WAS FAA FORTY FIVE AND STACEY BRECHLER-KNAGGS, I BELIEVE, IS UP NEXT TO WE'LL BE TALKING ABOUT SOME ADDITIONAL FEDERAL FUNDING.
HEY MAYOR, AND COUNCIL, STACEY BRECHLER-KNAGGS, GRANTS AND CONTRACTS MANAGER, AND IF I COULD TAKE A MOMENT TO INTRODUCE MORGAN MELANIE, OUR GRANTS AND CONTRACTS SPECIALIST, SHE'S GOING TO TURN YOUR CAMERA ON AT LEAST SAY HI.
SHE'S BEEN PROMOTED AS A GRANTS CONTRACT SPECIALIST TO HELP OVERSEE THESE ARPA LOCAL RECOVERY FUNDS.
IT'S A LITTLE BIT A LOT OF, YOU KNOW, REMEMBER THIS BOB KIND OF MENTIONED THAT WE HAD RECEIVED 13 MILLION IN FROM U.S.
DEPARTMENT OF TREASURY FOR OUR LOCAL FISCAL RECOVERY FUNDS THROUGH THE ARPA.
WE HAVE RECEIVED HALF OF THAT SIX MILLION AND WE WILL BE RECEIVING THE SECOND HALF SOON.
THOSE FUNDS AGAIN MUST BE OBLIGATED DECEMBER 31ST THROUGH THE 24TH AND EXPENDED BY DECEMBER 31ST, 2026.
WE HAVE SOME, SOME TIME TO GET THESE EXTENDED.
WE DON'T WANT TO GO THAT LONG.
WE WANT TO GET THESE FUNDS OUT IN OUR COMMUNITY EXPEDITED AND CUT THAT TIME FRAME SHORTER .
FUNDING ALLOCATIONS, AS YOU RECALL, WE WIN A COUPLE OF TIMES TO CANCEL THE FINAL ALLOCATION WAS IN OCTOBER 12TH OF 2021.
ONE OF THOSE ALLOCATIONS, WE HAD 17 PROJECTS APPROVED IN VARIOUS FUNDING CATEGORIES AND WITHIN MULTIPLE CITY DIVISIONS THROUGHOUT THE CITY.
AGAIN, THOSE ARE DIRECT FEDERAL FUNDS.
THEY HAVE STRICT COMPLIANCE REQUIREMENTS OR RESPONSIBILITIES ON THEM,
[04:25:01]
AND THEN THEY'RE REQUIRED FOR THE TWO CFR, WHICH IS CODE OF FEDERAL REGULATIONS, PART TWO HUNDRED THAT THEY GO THROUGH A COMPETITIVE, OPEN AND FAIR PROCESS.WE I'M TRYING TO READ THE NOTES AT THE SAME TIME, THANKS TO IT, SO A LITTLE BIT MORE ABOUT HIM.
AGAIN, WE HAVE BEEN DOING A LOT OF RESEARCH.
THEY HAVE BEEN PUTTING OUT A LOT OF DIFFERENT FAQ'S.
A LOT OF WEBINARS WE'VE BEEN ATTENDING WITH ACMA, WITH LEAGUE OF CITIES AND LOOKING AT GUIDANCE DOCUMENTS, THEY'RE CONSISTENTLY UPDATING THOSE GUIDANCE DOCUMENTS.
SO WE'RE REALLY TRYING TO STAY ON TOP OF THAT AND AND UNDERSTAND THESE FUNDING SOURCES SINCE THEY ARE NEW TO THE CITY THROUGH THE DEPARTMENT OF TREASURY.
WE'VE SUBMITTED AN INTERIM REPORT.
WE'RE WORKING ON THE QUARTERLY FINANCIAL PERFORMANCE REPORT.
WE'RE WORKING ON A MONTHLY CITY MANAGER'S REPORT, WHICH WILL PROVIDE AN UPDATE TO YOU ON WHERE WE'RE AT WITH THE FUNDS AND OTHER REPORTS AS NEEDED IN THE CITY.
WE'VE ESTABLISHED A CORE TEAM WHICH IS GRANTS, MORGAN AND MYSELF LEGAL WITH CHRISTINA PERRY.
FINANCE WITH GLORY'S THOUSAND.
PROCUREMENT IS BRIAN ELLIOTT AND THEN THE CITY MANAGER.
OUR WONDERFUL, GREAT CLIFTON HAS JOINED OUR CORE TEAM TO ASSIST GET THESE FUNDS OUT IN THE COMMUNITY.
WE'VE HAD AN INTERNAL PROJECT TEAM MEETING SCHEDULED.
WE'VE ALREADY HAD ONE WITH HOUSING AND WE'RE CONTINUING TO SCHEDULE THOSE THROUGHOUT THE ORGANIZATION.
WE'RE GOING TO DRAFT A SIMPLE KIND OF RECOVERY PLAN THAT WILL EXPLAIN THE ALLOCATIONS THAT COUNCIL HAS APPROVED A LITTLE BIT ABOUT THE FUNDS AND TRY TO GET THAT UP ON OUR WEBSITE SITE.
WE'VE COMPLETED THE GRANT PROVISIONS.
WE'RE DRAFTING AND FINALIZING PROPOSALS, CONTRACTS, REPORTING TEMPLATES AND TRACKING SPREADSHEETS.
AND THEN LASTLY, IS THE COUNCIL APPROVED ALLOCATIONS HERE AGAIN IS IS WHERE WE'RE AT.
WE'RE WORKING DILIGENTLY RIGHT NOW IN THE CONGREGATE CARE SERVICES AS KIND OF A TOP PRIORITY, ALONG WITH CONTINUED WORK INTERNALLY WITH THE REST OF OUR TEAM.
SO WITH THAT, I'LL GO AHEAD AND TURN IT OVER TO SARA LANGLEY.
GOOD AFTERNOON, EVERYONE, MAYOR AND COUNCIL, SARAH LANGLEY, PUBLIC AFFAIRS DIRECTOR HERE.
IT SOUNDS LIKE YOU GUYS CAN'T SEE OUR VIDEOS, SO I WON'T WORRY ABOUT PUTTING MY VIDEO ON, BUT I'M HERE TODAY TO PROVIDE A BRIEF OVERVIEW OF OUR NEWEST INFRASTRUCTURE BILL, WHICH IS CALLED THE INFRASTRUCTURE INVESTMENT AND JOBS ACT, OR THE IIJA.
AND TODAY WE'LL FOCUS ON THE $550 BILLION IN NEW SPENDING THAT THIS BILL INCLUDES.
YOU KNOW, WITH THIS BILL, WE'RE DEALING WITH SUCH LARGE NUMBERS THAT THEY CAN SORT OF, YOU KNOW, SORT OF START TO LOSE MEANING.
BUT THE PIE CHART ON THE SCREEN SHOWS HOW THE FUNDS ARE SPLIT UP PROPORTIONALLY.
AND YOU CAN SEE THAT THE MAIN CATEGORIES OF FUNDING COVER A WIDE RANGE OF AREAS, INCLUDING TRANSPORTATION, ENERGY AND POWER, BROADBAND, WATER INFRASTRUCTURE AND RESILIENCY AND THE ENVIRONMENT.
AND THEN, AS YOU KNOW, THE BILLS, OF COURSE, VERY LONG.
SO WE'RE JUST GOING TO COVER SOME, SOME HIGH LEVEL TOPICS TODAY THAT ARE RELEVANT FOR FLAGSTAFF.
SO TRANSPORTATION IS BY FAR THE LARGEST FUNDING CATEGORY WITHIN THE INFRASTRUCTURE BILL.
SOME OF THE BIGGER PROGRAMS HERE INCLUDE FUNDING FOR MAJOR HIGHWAY REPAIRS, WHICH WOULD LIKELY BE FUNNELED THROUGH STATE AGENCIES LIKE ADOT.
IIJ ALSO PROVIDES ADDITIONAL FUNDING FOR COMPETITIVE GRANTS.
AND SOME OF THESE ARE GRANTS THAT WE'RE FAMILIAR WITH, LIKE THE INFO GRANT AND THE RAISE GRANT.
BUT THERE ARE ALSO NEW PROGRAMS SUCH AS THE PROTECT GRANT, WHICH FOCUSES ON RESILIENCY.
WITHIN THIS TRANSPORTATION CATEGORY.
THERE'S ALSO HUNDREDS OF MILLIONS OF DOLLARS TO REPAIR AND REPLACE DEFICIENT BRIDGES THROUGHOUT OUR STATE.
AND THEN THERE'S ALSO MONEY FOR PUBLIC TRANSIT, SUCH AS BUSSES AND TRAINS.
SO THE IIJ ADDRESSES CLIMATE CHANGE AS WELL AS TRANSPORTATION, AND IT DOES THAT THROUGH A VARIETY OF CHANNELS, JUST TO NAME A FEW.
IT CREATES FUNDING FOR AN ELECTRIC VEHICLE CHARGING NETWORK THROUGHOUT THE COUNTRY AND THAT WITHIN THAT IT PRIORITIZES FUNDING FOR RURAL COMMUNITIES.
AND THEN IT ALSO HELPS COMMUNITIES AND PROCURING LOW AND ZERO EMISSION BUSSES, AS WELL AS FUNDING FOR ENERGY RELATED MANUFACTURING.
NOTABLY, AIRPORTS ARE ALSO BENEFICIARIES OF THE INFRASTRUCTURE BILL, AND THAT FUNDING GOES INTO THE AIRPORT IMPROVEMENT PROGRAM, WHICH WE'RE FAMILIAR WITH AND WE ALREADY USE.
BUT THERE'S ALSO THE CREATION OF THE NEW AIRPORT TERMINAL PROGRAM, SO THAT'S PRETTY EXCITING.
IN THE REALM OF ENERGY AND THE ENVIRONMENT, THE IIJ DEDICATES BILLIONS OF DOLLARS TO IMPROVING GRID RESILIENCY AND RELIABILITY, AS WELL AS THE ENERGY
[04:30:03]
EFFICIENCY BLOCK GRANT PROGRAM AND FUNDING FOR THE WEATHERIZATION ASSISTANCE PROGRAM.VERY RELEVANT FOR FLAGSTAFF IS THE WILDFIRE MANAGEMENT FUNDING.
SO SPECIFICALLY, THIS INCLUDES MONEY FOR COMMUNITY WILDFIRE DEFENSE GRANTS, WHICH HELP FORCE COMMUNITIES LIKE OURS, BUILD MORE DEFENSIBLE SPACE AGAINST WILDFIRES.
AND THEN IT ALSO INCLUDES FUNDING TO HIRE MORE FEDERAL WILDLAND FIREFIGHTERS, AS WELL AS MONEY FOR LOCAL GOVERNMENTS TO CONDUCT THINNING AND POST FIRE RECOVERY WORK SO VERY RELEVANT FOR US.
IN RESPONSE TO AN INCREASE IN CLIMATE RELATED EXTREME WEATHER EVENTS, THE INFRASTRUCTURE BILL INVEST BILLIONS INTO FEMA AND THAT IS MOSTLY CHANNELED THROUGH THE FLOOD MITIGATION GRANTS AND THE AND VARIOUS INFRASTRUCTURE INVESTMENTS AND THEN DRINKING WATER, WASTEWATER AND STORM WATER INFRASTRUCTURE FUNDING ALSO REPRESENT SIGNIFICANT PARTS OF THE BILL, INCLUDING INVESTING IN STATE REVOLVING LOAN FUNDS, MAKING OUR STORM WATER INFRASTRUCTURE SYSTEMS MORE RESILIENT AND CREATING HEALTHIER, SORRY HEALTHIER AND CLEANER DRINKING WATER FOR OUR COMMUNITIES.
AND THEN THE LAST BIG POT OF MONEY THAT I'LL COVER HERE IS FUNDING TO EXPAND AFFORDABLE ACCESS TO HIGH SPEED INTERNET.
SO THIS WILL COME IN THE FORM OF BLOCK GRANTS TO STATES TO DEPLOY BROADBAND TO UNDERSERVED COMMUNITIES, AS WELL AS DISCRETIONARY GRANTS FOR MIDDLE MILE, AS THEY CALL IT, BROADBAND PROJECTS.
AND ALSO THE CREATION OF THE AFFORDABLE CONNECTIVITY BENEFIT PROGRAM, WHICH IS A MONTHLY VOUCHER FOR LOW INCOME FAMILIES TO AFFORD INTERNET ACCESS.
SO OF COURSE, THERE ARE A TON OF OTHER PROGRAMS THAT WE COULDN'T COVER HERE TODAY.
BUT YOU KNOW, ALL OF THESE ARE VERY POSITIVE PROGRAMS THAT WILL HAVE A GREAT IMPACT ON OUR COMMUNITY AND OUR BROADER STATE.
SO AT THIS POINT, YOU'RE PROBABLY WONDERING ABOUT TIMELINES AND WHEN WILL WE START TO SEE THESE FUNDS BECOMING AVAILABLE? SO FOR THAT, I'LL PASS IT BACK OVER TO BOB AND NICOLE TO COVER THAT AND WHAT THIS MEANS FOR FLAGSTAFF.
AND BOB HOLMES AGAIN, AND I JUST WANTED TO KIND OF GO OVER SOME OF THESE THINGS AND AND TALK A LITTLE BIT ABOUT SOME OF THE FUNDING AND WHAT IT MEANS FOR ARIZONA AND WHAT IT MEANS FOR FLAGSTAFF.
AND GIVE YOU SOME OF THESE TOP LINE NUMBERS.
I ALSO WANT TO LET YOU KNOW THAT I PRODUCED A DOCUMENT FOR THE CITY THAT I BELIEVE.
10 PAGE IIJA DOWN INTO A FIVE PAGE KIND OF TOP LINE SUMMARY OF WHAT IS IN THE BILL.
NOW IT'S ALSO IMPORTANT TO NOTE THAT A LOT OF THESE PROGRAMS ARE GOING TO BE IN THE GRANT FORM OF DISCRETIONARY AND COMPETITIVE GRANT PROGRAM IN WHICH WE'LL HAVE TO APPLY FOR A LOT OF THESE GRANTS.
SOME WE'RE FAMILIAR WITH A LOT LIKE RAISE AND OTHERS, BUT A LOT OF IT IS FORMULA FUNDING.
SO WITH REGARDS TO THE FORMULA FUNDING, WE KNOW WHAT THE STATE IS GOING TO GET AND WHAT SOME OF OUR LOCAL AGENCIES ARE ALSO GOING TO GET.
SO WITH THAT, I'LL KIND OF JUST JUMP IN.
YOU KNOW, WE'RE GOING TO GET ONE HUNDRED AND TEN BILLION DOLLARS IN ROADS AND BRIDGES IN THE IN THE IIJA $5 BILLION OVER THE NEXT FIVE YEARS, A LITTLE OVER A BILLION DOLLARS A YEAR.
SO WE KNOW THERE'LL BE AN EXTRA BILLION DOLLARS FOR THAT, WHICH WILL TRANSFORM ADOT INTO FROM A PAVEMENT PRESERVATION PROGRAM, WHICH THEY TAKE CARE OF EXISTING ROADS ONLY INTO AN AGENCY THAT WILL BE ABLE TO BUILD NEW ROADS.
SO WE SHOULD LOOK AT POTENTIAL NEW ROADS OR NEW THOROUGHFARES THAT WE WANT TO IMPROVE, SUCH AS LOAN TREE 4TH ST.
BUT WE'LL HAVE THAT DISCUSSION WITH YOU ALL LATER.
THERE'S ALSO $225 MILLION FOR FOUR TO ADDRESS THE 132 DEFICIENT BRIDGES IN ARIZONA, SO THAT'LL BE A SIGNIFICANT INFLUX OF FUNDS IN TERMS OF PUBLIC TRANSPORTATION THERE'S THIRTY NINE BILLION IN THE BILL.
EIGHT HUNDRED AND EIGHTY FOUR MILLION DOLLARS WILL GO THROUGH TO ARIZONA, AND MOUNTAIN LINE WILL BE RECEIVING 20 AND A HALF MILLION DOLLARS DIRECTLY.
AS SARAH ALLUDED TO, BROADBAND IS A REALLY BIG DEAL.
IT HASN'T TRADITIONALLY BEEN AN INFRASTRUCTURE BILL.
IT IS THIS TIME, AND IT'S CRITICAL THAT AREAS RECEIVE BROADBAND SUCH AS FLAGSTAFF
[04:35:05]
IN OTHER RURAL AREAS.THERE ARE SIXTY FIVE BILLION DOLLARS TOTAL IN THE BILL.
FORTY TWO POINT FORTY FIVE BILLION WILL BE GOING TO STATES IN THE FORM OF BLOCK GRANTS, WITH AN EMPHASIS ON UNDERSERVED COMMUNITIES AND A DEDICATED SET ASIDE FOR STATES LIKE ARIZONA WITH A HIGH NUMBER OF RURAL COMMUNITIES.
SO THAT'S THE THE BIGGEST INFLUX OF FUNDS.
THERE'LL BE A $1 BILLION FOR MIDDLE MILE BROADBAND, AND THERE'S A NEW PROGRAM CALLED THE AFFORDABLE CONNECTIVITY BENEFIT THAT SARAH ALLUDED TO.
THAT WILL PROVIDE A $30 A MONTH, $30 A MONTH VOUCHER FOR LOW INCOME FAMILIES SO THEY CAN AFFORD INTERNET ACCESS.
THERE'S ALSO, AS SARAH ALLUDED TO, THERE'S ABOUT EIGHT POINT TWENTY FIVE BILLION DOLLARS FOR WILDLIFE MANAGEMENT, INCLUDING A BILLION DOLLARS FOR COMMUNITY WILD DEFENSE GRANTS AND $600 MILLION TO HIRE WILDLAND FIRES.
THERE'S ALSO $20 MILLION SPECIFICALLY FOR EPRI, THE ECOLOGICAL RESTORATION INSTITUTE, AT NAU, SO THAT'S A HUGE, HUGE BOON FOR THE FOR THE CITY.
WELL, THERE'S $55 BILLION FOR WATER INFRASTRUCTURE OF THIS, A LOT OF IT IS FORMULA DRIVEN.
SO WE'LL RECEIVE ABOUT TWO HUNDRED AND TEN POINT EIGHT MILLION DOLLARS ANNUALLY OVER THE NEXT FIVE YEARS FOR ARIZONA'S DRINKING WATER STATE REVOLVING LOAN FUND.
AND THAT'LL HELP FINANCE PUBLIC AND PRIVATE WATER SYSTEMS. THERE'S ALSO WILL BE A SEVENTY TWO MILLION DOLLARS TO ADDRESS ENVIRONMENTAL REMEDIATION THROUGH THE P-FAST PROGRAM, SO THAT AGAIN WILL HELP US CLEAN UP SOME OF THE DRINKING WATER PROBLEMS WE'RE HAVING IN THE STATE IN TERMS OF THE CLEAN WATER REVOLVING FUND, ABOUT SEVENTY NINE POINT SIX MILLION DOLLARS ANNUALLY OVER THE NEXT FIVE YEARS WILL BE GOING TO THAT PROGRAM IN ARIZONA, INCLUDING SIX POINT EIGHT MILLION DOLLARS FOR P-FAST.
THERE'S A NEW PROGRAM FOR OVERFLOW AND STORM WATER MUNICIPAL GRANTS THAT WE CAN USE FOR NEW CULVERT REMOVAL, REPLACEMENT AND RESTORATION.
THAT'S THE LAST SLIDE BOB, THAT'S RIGHT.
SO THAT'S I'LL TURN IT OVER TO YOU.
THANK YOU AND THANKS EVERYONE WHO CONTRIBUTED TO THE PRESENTATION.
WE WANTED TO LEAVE AS MUCH TIME AS POSSIBLE FOR THE COUNCIL, ANTICIPATING THAT THERE WAS GOING TO BE SOME QUESTIONS.
BOB, YOU WRANGLE UP A LOT OF NUMBERS THERE REALLY QUICKLY.
UM, WHICH IS ALL FABULOUS, IT'S OVERWHELMING AND QUITE WELCOME THE WAY YOU MENTIONED A SPECIFIC NUMBER ABOUT BRIDGES, I THINK THAT WAS A STATE LEVEL NUMBER.
DO YOU KNOW WHICH BRIDGES, IF ANY, IN FLAGSTAFF I SHOULD BE AVOIDING OR FOR POSSIBLE REPAIRS? YOU KNOW COUNCIL MEMBER ASLAN I WILL GET YOU THE LIST OF ALL THE BRIDGES IN ARIZONA, SO YOU KNOW WHICH ONES TO AVOID SPECIFICALLY.
I GOT A QUESTION, SO MOUNTAIN LINE IS GETTING DIRECT FUNDS IN THE USE ECOLOGICAL RESTORATION INSTITUTE, IT'S GETTING DIRECT FUNDS, THERE ARE ALL THE MONEY THAT WE ARE GOING TO BE ABLE TO ACCESS, ALL GOING TO BE GOING THROUGH THE STATE GRANT APPLICATION FUND.
OR HOW OR ARE WE GETTING ANY DIRECT FUNDS STRAIGHT TO THE CITY OF FLAGSTAFF IN ANY FORM OF THIS? SO MAYOR AND COUNCIL, THE ANSWER IS THAT MOST OF IT WILL BE GOING THROUGH STATE AGENCIES, UNLIKE THE APPROPRIATIONS BILLS, WHICH WILL BE PASSED AT SOME POINT NEXT YEAR.
THE CONTINUING RESOLUTION RUNS OUT FEBRUARY 18TH, THE EARMARKS IN THOSE.
HOWEVER, THIS BILL HAD NO EARMARKS, SO IT'S GOING TO BE A COMPETITIVE GRANT PROCESS FOR A LOT OF THESE FUNDS, ALTHOUGH SOME OF THE, YOU KNOW, SOME OF THESE FUNDS, QUITE HONESTLY.
YOU KNOW, SENATOR SINEMA WROTE THIS BILL AND SHE DID A GREAT JOB OF TAKING CARE OF ARIZONA.
SO A LOT OF THESE FUNDS WILL GO WHERE, FOR INSTANCE, THE EDA, THERE'S SOME FUNDING FOR THE ENVIRONMENTAL WATERSHED PROTECTION PROGRAM, WHICH IS CALLED EWPP.
I ONLY SPEAK IN ACRONYMS BECAUSE I'M FROM D.C., BUT THIS WAS SPECIFICALLY DONE TO ADDRESS THE MUSEUM FOUR STAR PLUS WILDFIRE MITIGATION FLOODING.
AND SO THERE ARE PROGRAMS LIKE THAT THAT ARE GOING TO SPECIFICALLY HELP ARIZONA.
AND OBVIOUSLY, YOU KNOW, THE CHIEF OF THE FOREST SERVICE WAS IN A FEW WEEKS AGO AND
[04:40:06]
AND MAYOR AND SOME OF THE COUNCIL MEMBERS, YOU GUYS GOT TO MEET WITH HIM AND THEY SPECIFICALLY ARE TAKING $54 MILLION OUT OF THIS BILL TO WORK ON SMALL SCALE RESTORATION PROJECTS AND [INAUDIBLE].THEY USED ABOUT THREE AND A HALF MILLION DOLLARS TO ADDRESS THE MUSEUM BURN SCAR POST WILDFIRE FLOOD MITIGATION.
SO THERE WILL BE SOME FUNDS, BUT MOST OF THEM COME THROUGH THE STATE.
THANK YOU, SHIMONI HAS HIS HAND UP.
[INAUDIBLE] THANK YOU, MAYOR, AND AND THANK YOU ALL FOR THE PRESENTATION.
HI, BOB, THANKS FOR JOINING US AND YOUR EFFORTS, AS ALWAYS.
JUST A QUICK QUESTION FOR YOU, BOB.
IS THERE ANY FEEDBACK OR RECOMMENDATIONS YOU HAVE FOR US TO SEE ANY FEEDBACK OR RECOMMENDATIONS YOU HAVE FOR US, BOB, IN REGARDS TO HOW TO BEST PRESENT PREPARE AND WHAT'S THE WORD I'M LOOKING FOR, BUT PREPARE FOR THESE GRANT OPPORTUNITIES AND THESE FUNDING LEVERAGING OPPORTUNITIES? UM, COUNCIL MEMBER SHIMONI AND COUNCIL, THAT'S A THAT'S A GREAT QUESTION, AND TO BE 100 PERCENT FRANK, WE'RE LEARNING A LOT MORE ABOUT HOW THESE PROGRAMS ARE GOING TO WORK.
AND WE PARTICIPATED IN AT LEAST HALF A DOZEN NOW WITH THE DEPARTMENT OF TRANSPORTATION, WITH THE WHITE HOUSE AND WITH OTHERS TO LEARN HOW TO LEARN HOW THEY'RE GOING TO DISSEMINATE THIS.
AND THOSE GUIDELINES AND THOSE RULES AND REGULATIONS SHOULD START FLOWING OUT EARLY NEXT YEAR, AND I THINK WE'LL LEARN A LOT MORE THEN.
BUT YOU KNOW, THE REASON WHY WE'RE PUTTING THIS OUT HERE FOR YOU NOW IS SO THE MAYOR AND COUNCIL, YOU GUYS CAN THINK ABOUT WHERE YOU WANT TO CONCENTRATE SOME OF YOUR EFFORTS.
AND THEN WE AS STAFF CAN HELP YOU FIND AND TARGET THOSE PROGRAMS FOR POTENTIAL GRANT FUNDING.
YEAH, THE BIG QUESTION, THEN, IS WHEN WHEN CAN WE SEE THOSE BUCKETS? WHAT'S WHAT WHAT'S THE TIMELINE ON WHEN WE MIGHT BE ABLE TO ACCESS SOME OF THESE DOLLARS, PARTICULARLY FOR STORM WATER INFRASTRUCTURE? WELL, MAYOR, THAT'S ANOTHER GOOD QUESTION.
AND I THINK THE ADMINISTRATION IS TRYING TO PUSH OUT THESE FUNDS AS QUICKLY AS POSSIBLE TO HELP COMMUNITIES.
SO I IMAGINE AS EARLY AS EARLY FOR FIRST QUARTER NEXT YEAR THAT SOME OF THESE FUNDS WILL BE AVAILABLE AND PUSHED OUT.
AND AS FAR AS I WANT TO BE CLEAR, AS FAR AS SOME OF THESE FORMULA FUNDS, THOSE ARE BEING PUSHED OUT AS WE SPEAK BECAUSE THEY ALREADY KNOW WHAT THE FUNDING LEVEL IS.
SO I'M JUST TALKING AS FAR AS THESE OTHER PROGRAMS AND THESE NEW PROGRAMS, ONCE THEY RELEASE THOSE GUIDELINES, I THINK A LOT OF THESE PROGRAMS WILL BE READY IN Q1, 2022.
[INAUDIBLE] ANY OTHER QUESTIONS? OKAY.
CAN I INTERRUPT THIS IS STACEY I HAVE MY HAND RAISED, SORRY, YOU MAY NOT SEE IT.
AND IF I JUST HAVE A FEW MINUTES.
MAYOR, JUST A REAL QUICK RESPONSE TO YOUR QUESTION ON THAT STORM WATER AND FLOODING.
WE HAVE BEEN VERY AGGRESSIVE IN STORM WATER AT CHECK AND APPLYING FOR HAZARD MITIGATION WILDFIRE GRANTS.
WE JUST SUBMITTED A $16 MILLION ONE FOR SPRUCE WASH.
THOSE FUNDS ARE AVAILABLE NOW AND WE'RE BEING VERY AGGRESSIVE AND PUSHING HARD TO SUBMIT FOR THINGS THAT ARE OUT THERE NOW POST WILDFIRE.
HOPEFULLY, WE WILL RECEIVE THOSE FUNDING.
ARE THERE ANY OTHER COMMENTS OR HANDS RAISED ONLINE? JUST MAKE NO HANDS ON LINE.
I'LL MAKE A QUICK STATEMENT TO CLIFTON OVER HERE THAT, YEAH, I WANT I WANT TO MAKE SURE THAT ALL THE STAFF HAVE THEIR ABILITIES WITH VERY LIMITED TIME AND ALL OF OUR RESPONSIBILITIES AND LOW STAFFING THAT WE HAVE THE CONSULTING OR OTHERS
[04:45:01]
AGENCIES TO BE ABLE TO HELP US WITH GRANT APPLICATIONS.I REALLY WANT TO MAKE SURE WE CAN MAXIMIZE THE NUMBER OF APPLICATIONS AND THE QUALITY OF THEM WITH.
WE HEAR YOU LOUD AND CLEAR AND WE ARE MARCHING FORWARD.
FANTASTIC, THANK YOU SO MUCH FOR YOUR PRESENTATION, IF WE COULD GIVE THEM A ROUND OF APPLAUSE AS A THANK YOU FOR ALL THEIR SUPPORT.
SO WE ARE VERY CLOSE TO THE END OF THE DAY AND A LITTLE AHEAD OF OUR TIME SCHEDULE.
APPARENTLY, I PUT THE FEAR INTO EVERYONE.
AND WE'RE 15 MINUTES EARLY NOW.
WHAT WE HAVE IS COUNCIL EXPECTATIONS WILL GO INTO THAT HERE IN A MINUTE.
REALLY, IT'S AN OPPORTUNITY TO GET A TEMPERATURE CHECK ON OUR COUNCIL MEMBERS AND MAYOR WHERE THEY'RE AT WITH THEIR PRIORITIES WITHIN THE COMMUNITY, PRIORITIES OF THE BUDGET, WHAT QUESTIONS THEY MIGHT HAVE THAT MIGHT GUIDE SOME MORE RESEARCH TO BRING BACK IN OUR NEXT MEETING.
AND THEN AT THE VERY END, WE'LL HAVE IT OPEN TO PUBLIC PARTICIPATION IF WE HAVE ANY THERE.
AS WE HEAD INTO THIS I KNOW THAT THE COUNCIL MEMBERS HAVE ALREADY ASKED THE BUDGET TEAM AND THE CITY MANAGER TO MOVE FORWARD ON A FEW THINGS.
SO I WOULD LOVE FOR GREG CLIFTON TO GIVE US A LITTLE SUMMARY OF WHAT HAS ALREADY BEEN ASKED OF THEM AND WHAT THEY'RE WORKING ON.
THANK YOU, AND THANKS TO ALL THE PRESENTERS FOR GETTING US BACK ON TRACK.
ALL THE TOPICS TODAY HAVE BEEN SO IMPORTANT, INCLUDING THIS ONE, OF COURSE, THE THINGS THAT ARE ALREADY IN PLAY.
AND FORGIVE ME IF I'M TELLING YOU THINGS THAT ARE BLATANTLY OBVIOUS, BUT JUST TO HELP SET THE STAGE FOR THIS DISCUSSION SHORTLY AFTER THIS RETREAT TODAY, SHANNON AND I WILL BE HAVING OUR SECOND MEETING WITH THE CITIZEN BOND COMMITTEE, WHICH IS NOW UP TO 23 MEMBERS, AND THAT BOND COMMITTEE WILL BE TACKLING HEAD ON THE THE REQUEST TO CONSIDER A POSSIBLE FUTURE BOND MEASURES IN NOVEMBER OF THE 2022 ELECTION, AS MAY BE CONCERNING HOUSING.
SO CLIMATE ACTION AND POSSIBLY INFRASTRUCTURE IN THE INFRASTRUCTURE CATEGORY MAY BE INCLUSIVE OF A NUMBER OF THINGS THAT THIS COUNCIL HAS TALKED ABOUT AND SOME THINGS THAT HAVE BEEN TALKED ABOUT TODAY.
SO I JUST WANT TO GIVE THAT KIND OF REFRESHER OF WHAT'S ALREADY IN PLAY.
THESE ARE VERY IMPORTANT TOPICS.
THEY DON'T NECESSARILY HAVE IMPLICATIONS FOR THE BUDGET DISCUSSIONS NOW, BUT THEY REALLY DO IF WE LOOK AHEAD IN WHAT MAY BE HAPPENING AT LEAST AS OF NOVEMBER NEXT YEAR.
I WANT TO CIRCLE BACK ON INFRASTRUCTURE BECAUSE WE'VE BEEN HITTING ON IT A LOT TODAY.
IT WAS THE TOPIC ON SEPTEMBER 30TH IN THIS VERY ROOM.
IT WAS THE TOPIC THAT CONSUMED A BIG PART OF THAT RETREAT.
YOU KNOW, BECAUSE IT'S FRESH IN YOUR MINDS ABOUT OUR WASTE WATER NEEDS, YOU KNOW, BECAUSE IT IS SO VISIBLE IN OUR COMMUNITY OF OUR STORM WATER INFRASTRUCTURE NEEDS.
AND YOU JUST HEARD FROM A GREAT TEAM HOW WE ARE STRATEGIZING TO PURSUE INFRASTRUCTURE GRANT FUNDING.
I'M NOT TOUCHING ON TRANSPORTATION THAT IS AND HAS BEEN ON THE TABLE.
AND THERE WERE A NUMBER OF THINGS ALSO RELATED TO PUBLIC SAFETY THAT WERE TALKED ABOUT DURING THE RETREAT.
FIRE FLEET NEEDS, RADIOS FOR OUR LAW ENFORCEMENT OFFICERS AND THE LIST GOES ON.
IN ADDITION TO THE ULTIMATE RESPONSE PROGRAM AS WELL.
BIG TOPICS ALREADY IN PLACE SO AS YOU ENDEAVOR TO TALK ABOUT COUNCIL EXPECTATIONS, PLEASE KEEP IN MIND WHAT'S ALREADY IN PLAY AND THE FACT THAT A LOT OF RESOURCES ARE BEING ALLOCATED TO THAT IN MAY OR TO THE POINT YOU JUST MADE.
YES, WE ARE LOOKING TO BRING IN OUTSIDE RESOURCES TO HELP US ACROSS THE SPECTRUM OF OUR ORGANIZATION.
I KNOW YOU'RE HEARING A LOT OF THAT LATELY AND WE'RE GOING TO WE'LL KEEP MENTIONING IT BECAUSE IT IS.
IT IS A FRONT BURNER ITEM FOR US ADMINISTRATIVELY.
WE ARE WE ARE WORKING HARD ON THE RECRUITMENT FRONT.
JUST JUST THIS WEEK AND LAST WEEK, WE WERE LOOKING AT GREAT MATERIALS BEING
[04:50:02]
FORMULATED WITHIN OUR ORGANIZATION, INCLUDING ADVERTISEMENTS, PROMOTIONS AND VIDEOS FOR COUNCIL MEMBER SHIMONI.I KNOW HE'S LISTENING VIRTUALLY.
YES, THERE WILL BE VIDEOS AND THAT STUFF'S COMING YOUR WAY.
YOU'LL BE ABLE TO SEE HOW RESOURCEFUL WE'RE WE'RE BEING IN TERMS OF TRYING TO FILL OUR STAFFING NEEDS IS KIND OF ENDED WITH THIS.
IT'S A BIT IRONIC, BUT IT'S ALL FORTUITOUS.
WE'RE TALKING ABOUT THE FUNDING THAT YOU JUST HEARD ABOUT THROUGH ARPA AND THE OTHER FUNDING SOURCES, BUT YET WE'RE SCRAMBLING TO FIND THE RESOURCES TO PURSUE THESE THINGS WITH GRANTS, AND WE'RE SCRAMBLING TO RECRUIT TO FILL THE VACANCIES WE HAVE.
THERE ARE SO MANY THINGS IN PLAY RIGHT NOW.
BUT AT THE SAME TIME, AND THIS IS A GOOD PREFACE TO YOUR CONVERSATION, THERE'S SO MANY OPPORTUNITIES AS WELL, AND WE WANT TO PURSUE ALL OF THEM.
SO AS WE HEAD INTO COUNCIL EXPECTATIONS, THEY THINK IT'S GREAT TO KIND OF FIRST GET A TEMPERATURE CHECK.
AND WHAT I MEAN BY TEMPERATURE CHECK IS WHEN WE TALK ABOUT PRIORITY BASED BUDGETING, WHAT IS COMING UP AS THE LARGEST PRIORITIES FOR YOU AND WHAT QUESTIONS ARE CURIOSITIES DO YOU HAVE ABOUT THOSE THAT COULD PREPARE US BETTER FOR OUR NEXT BUDGET MEETING IN FEBRUARY? SO IN OTHER WORDS, AS YOU AS WE'RE ALREADY VERY CLEAR OF WHAT OUR COMMUNITY PRIORITIES ARE.
WHAT ARE SOME PRIORITIES PERSONALLY FOR YOU AS A TEMPERATURE CHECK OF WHERE YOU'RE AT AND WHAT WHAT ADDITIONAL QUESTIONS OR DATA MIGHT YOU NEED TO HELP GUIDE THOSE DECISIONS MOVING FORWARD? SO I'M GOING TO ASK THE COUNCIL MEMBERS AND MAYOR AND VICE MAYOR TO TAKE A MINUTE AND WRITE DOWN SOME INITIAL THOUGHTS YOU HAVE ON PRIORITIES OR AND OR QUESTIONS THAT YOU HAVE.
UM, AND ADDITIONAL DATA YOU MIGHT NEED MOVING FORWARD INTO OUR FEBRUARY MEETING.
I WAS GOING TO GIVE EVERYONE JUST A ONE MORE MINUTE TO KEEP WRITING AND THEN.
WHATEVER YOU FEEL ? AND WE'RE JUST GIVING ONE MORE MINUTE FOR PEOPLE TO FINISH THEIR NOTES ON THIS AND FOR THOSE THAT ARE VIRTUAL.
UH, IF YOU COULD LET ME KNOW IF THEY RAISE THEIR HAND WHEN THEY'RE WATCHING.
OK, THANK YOU SO MUCH FOR TAKING A FEW MINUTES OF REFLECTION TIME, THIS WILL HELP CREATE SOME GUIDING POSTS FOR THE MEETING IN FEBRUARY.
FOR THOSE IN THE ROOM THAT MIGHT BE ABLE TO COME BACK WITH SOME MORE INFORMATION FOR EACH DECISION, WE SHOULD.
THE FIRST THING I'D LIKE TO SAY IS THAT WE HAVE A VERY GOOD DISCUSSION TODAY, AND I REALLY DID NOT SEE ANY RED FLAGS OR ANYTHING JUST LIKE, OH MY GOD, I DON'T AGREE WITH THAT.
I DIDN'T HEAR ANYTHING LIKE THAT.
AND BY AND LARGE AND VERY SUPPORTIVE.
I THINK IT'S IMPORTANT THAT WE KEEP OUR EMPLOYEES HAPPY WITH DOING AS MUCH AS WE CAN, AS WE TALKED ABOUT EARLIER.
TWO THINGS THAT DO COME TO MIND IS THAT YOU'VE ALREADY SAID THIS CITY MANAGER, BUT I JUST WANT TO REPEAT IT BECAUSE I THINK IT'S IMPORTANT IS THAT THE FLOOD MITIGATION MEASURES THE TO TO MITIGATE THE IMPACTS OF WHAT HAPPENED FROM THE MUSEUM FIRE.
THOSE ARE VERY IMPORTANT TO ME AND I KNOW YOU'RE WORKING ON THAT, BUT I JUST WANT TO SAY THANK YOU AND CONTINUE TO WORK ON THAT.
THE OTHER THING THAT COMES TO MIND IS THAT THIS COUNCIL HAS MADE A LOT OF STATEMENTS ABOUT CLIMATE CHANGE, AND I SENSE THAT WE'RE GOING TO HAVE TO FIND SOME FUNDING TO
[04:55:05]
IMPLEMENT SOME OF THE THINGS THAT WE'VE INFORMALLY TALKED ABOUT.SO THOSE ARE KIND OF THE TOP, THE THINGS THAT CLOSE TO THE TOP OF THE TABLE IN MY MIND.
THANK YOU COUNCIL MEMBER, SO IN SUMMARY, WHAT I HEAR IS FROM A TOP LEVEL, BECAUSE TODAY'S TOP LEVEL INFRASTRUCTURE IS A BIG PRIORITY, SPECIFICALLY WHEN IT COMES TO STORM WATER AND FLOODING.
ENSURING THE HEALTH OF THE ORGANIZATION AS A WHOLE AND ITS EMPLOYEES AND FUNDING FOR CLIMATE ACTION, DID I GET THAT RIGHT.
A LOT OF THE SAME THINGS ARE TOUGH FOR ME, ESPECIALLY THE UNFUNDED MANDATE WE HAVE FOR CLIMATE ACTION RIGHT NOW.
WE DO HAVE TO PUT OUR MONEY WHERE OUR MOUTH IS AND WE NEED TO FIND WAYS TO DO THAT AND LOOKING FORWARD TO.
THE PANEL DISCUSSIONS BECAUSE I THINK THE PUBLIC NEEDS TO BE PUTTING ITS MONEY WHERE ITS MOUTH IS ON THIS ISSUE, TOO, THEY'VE COME TO US WITH SOME PRETTY HEAVY DEMANDS AND NOW THEY NEED TO TURN OUT THEIR POCKETS TO MAKE IT WORK.
I JUST WANTED TO ADD THAT I'M VERY GRATEFUL FOR THE ENTIRE CONVERSATION AROUND COMPENSATION AND THE WAYS THAT YOU'RE PUTTING THE MONEY ASIDE TO ADDRESS MARKET ADJUSTMENTS AND COMPRESSION COMPACTS AND ALL THOSE THINGS.
I THINK IT'S AN INCREDIBLY RESPONSIBLE THING TO DO.
AND THAT'S SOMETHING WE COULD EVER TAKE FOR GRANTED, EITHER.
IT'S JUST SUCH A SMART, RESPONSIBLE WAY TO TAKE CARE OF OUR EMPLOYEES OF THE LANGLEY ORGANIZATION.
AND I'M REALLY APPRECIATIVE IT TO THE ENTIRE BUDGET TEAM FOR THE [INAUDIBLE] THANK YOU, COUNCIL MEMBER ASLAN, SO AGAIN, FUNDING FOR CLIMATE ACTION SPECIFICALLY REGARDING THE BONDS, DISCUSSION AND ORGANIZATION, SPECIFICALLY TALKING ABOUT COMPENSATION AS A HUGE PRIORITY, AND THAT SOUNDS LIKE THEY'RE VERY MUCH SO IN ALIGNMENT WITH ALL THAT WAS PRESENTED.
DID I GET THAT RIGHT? WELL, I ALSO SHARE THE PRIORITY OF THOSE IMPROVEMENTS BEFORE THE NEXT MONSOON SEASON TO HELP KEEP OUR COMMUNITIES, AREAS AND THE WESTERN PART OF OUR STATE, MY HOUSE AND SHADOW MOUNTAIN.
WHAT ELSE? YES, COUNCILMAN COUNCIL MEMBER SWEET, THANK YOU.
I DON'T HAVE ANYTHING DIFFERENT, AND I DO WANT TO EXPRESS MY APPRECIATION FOR TODAY AND ALL OF THE INFORMATION AND HAVING IT SO EASY TO UNDERSTAND.
I JUST AM IN AWE HOW WELL THE PRESENTERS MAKE EVERYTHING EASY TO UNDERSTAND AND MAKE THE DAY GO GREAT.
SO FOR ME, INFRASTRUCTURE IS DEFINITELY TOP ON MY PRIORITY, KEEPING OUR ORGANIZATION HEALTHY AND.
THE SAME INFORMATION THAT THEY GAVE, BUT I ALSO, FOR ME, JUST CONSISTENT UPDATES WOULD BE.
AND WE'VE BEEN GETTING THEM, AND FOR MYSELF, THAT REALLY HELPS.
AND I JUST WANT TO SEE WHAT CONTINUE THE WHOLE PROCESS.
OK, SO MAKE SURE I UNDERSTAND MAINTAINING THE UPDATE YOU'RE ALREADY RECEIVING NECESSARILY A CHANGE TO THOSE.
AND I JUST KEEP KEEPING IT COMING, EVEN IF THEY'RE SHORT AND SWEET.
JUST SOMETHING THAT WOULD KEEP US ALL IN THE LOOP SYSTEM.
AND WITH THAT, YOU HEAR THE OTHER INFRASTRUCTURE AS A MAJOR PRIORITY.
OBVIOUSLY, AS THEY STATED, STORM WATER INFRASTRUCTURE IS OUR TOP PRIORITY FOR THE MONSOONS AND THE MOST TIMELY OF THINGS WE NEED TO ACCOMPLISH.
WELL, MUCH OF THIS DISCUSSION, SO MUCH HINGES ON WHAT'S GOING TO HAPPEN IN THE FEDERAL GOVERNMENT.
AND I KNOW PREACHING TO EVERYONE WHO KNOWS THIS, BUT WE NEED TO ENSURE WE HAVE MATCHING DOLLARS AVAILABLE WHERE IT'S NEEDED.
AND I THINK THAT'S GOING TO TRY TO DIRECT HOW WE'RE HAVING OUR GENERAL FUND DISCUSSION.
SO THAT WAY WE CAN ACCESS THE DOLLARS.
SO IF THERE'S THINGS THAT ARE, YOU KNOW, 80 PERCENT MATCH HUNDRED PERCENT MATCH 50 PERCENT MATCH, THOSE NUMBERS ARE GOING TO BE EXTREMELY IMPORTANT FOR HOW ARE ENTERING THE BUDGET SESSION.
AND HOPEFULLY WE'LL KNOW MORE BY A MONTH FROM NOW ON WHAT THAT IS GOING TO LOOK LIKE.
BUT IN GENERAL, PRIOR PRIORITIES IN GENERAL, TO ADD ON TO THE CLIMATE ACTION AND ADAPTATION, I WOULD LIKE TO SEE A LARGE INFRASTRUCTURE PROJECT, A
[05:00:02]
SOLAR FARM TO COORDINATE WITH NAU FOR THE BIOMASS PLANT THEIR DOING, ONLY NOT JUST DO CELL CANVAS IF WE CAN ASSIST AND [INAUDIBLE] PART OF OUR CITY THROUGH THAT PROCESS WHILE ALLOWING US TO GET THE SLASH OFF THE AREAS WE NEED TO SPEND.THAT WOULD BE A VERY GOOD THING.
I WANT SOMETHING BIG IN THAT REGARD THAT PEOPLE CAN SEE.
IN ADDITION, ON THE AREA OF STORM WATER INFRASTRUCTURE.
WE MAY ONLY HAVE ONE CHANCE TO BE DRILLED GOING UNDERNEATH THE NSF TRUCKS.
WE NEED TO MAKE SURE WE'RE FUNDING THAT AS IF I HAD ROOT UNDERNEATH THE NEXT TO THE DOWNTOWN CONNECTION CENTER.
WE NEED TO MAKE SURE WE TAKE ADVANTAGE OF THIS SITUATION.
AND IN ADDITION A LOT OF THE STUFF THAT GOES UNDER THE SUSTAINABILITY IN INNOVATIVE INFRASTRUCTURE BROADBAND, I KNOW I SAY THIS CONSTANTLY.
YOU ALL KNOW THAT, BUT ESPECIALLY IF WE START DEVELOPING THE SMART CITY INITIATIVES AND SMART CITY PLAN, THAT'S STARTING TO MOVE FORWARD, THAT WE HAVE THE MEANS TO REALLY USE TECHNOLOGICAL ADVANCES FOR NOT JUST THE CITY AS A WHOLE, BUT ALSO OUR OWN ORGANIZATION AND HOW WE CAN CREATE GREATER EFFICIENCIES THROUGH ALL THE NEW TECHNOLOGY THAT'S COMING OUT.
AND I'VE GIVEN THESE SOME OF THESE EXAMPLES.
OF COURSE, I HAVEN'T HEARD THEM, BUT SENSORS ON OUR COMMERCIAL TRASH CANS, FOR EXAMPLE, CAN HELP US MORE EFFICIENTLY TAKE ROUTES FOR OUR WASTE MANAGEMENT SO WE KNOW WHEN THEY'RE TWO THIRDS FULL.
IF THINGS ESTABLISH A ROUTE, A LOT OF TECHNOLOGICAL ADVANCES OUT THERE.
BUT AND THEN JUST LASTLY, YOU KNOW THIS, IT'S AMAZING.
WE'RE GETTING THIS ALTERNATE RESPONSE HAPPENING.
IT'S BEEN MOVING ALONG SO WELL.
I'M VERY PROUD OF EVERYONE WHO HAS BEEN INVOLVED IN THIS PROCESS.
BUT AS WE'RE LOOKING AT FISCAL YEAR FOR THE NEXT YEAR.
THAT WE ALSO FUNDED IT TO A POINT WHERE IT'S NOT FUNCTIONING TWENTY FOUR, SEVEN.
IT'S JUST, YOU KNOW, IT IS A GOOD PILOT, A GOOD WAY TO START, BUT WE HAVE TO THINK ABOUT A YEAR FROM THEN.
WHAT IS THAT GOING TO LOOK LIKE IN TERMS OF OUR FUNDING SOURCE FOR AND NOT JUST THIS LEVEL, BUT AN EXPANSION OF THAT PROGRAM THAT CAN HELP DIVERT 9-1-1 CALLS, HELP TAKE CALLS VOLUME OFF OF OUR POLICE AND BETTER, BETTER SERVICE OF OUR COMMUNITY TO GET THEM THE SERVICES THEY NEED AS OPPOSED TO CRIMINAL JUSTICE SYSTEM.
SO THOSE ARE JUST A FEW THAT I HAVE SO ADD THAT TO YOUR MASSIVE LIST, ALL OF THE OTHER STUFF THAT YOU'RE WORKING ON.
I WOULD HAVE BEEN SURPRISED THAT YOU DID NOT MENTION BROADBAND.
SO FROM A TOP HIGH LEVEL SUMMARY OF WHAT YOU JUST SAID, A HUGE PRIORITY IN INFRASTRUCTURE WITH MULTIPLE THINGS WITHIN THAT INFRASTRUCTURE, THE ABILITY TO MATCH FUNDS, THE BIPED INFRASTRUCTURE, THE STORM WATER INFRASTRUCTURE AND INVESTING IN TECHNOLOGY THAT CAN AID IN THOSE SYSTEMS AS WELL.
THE LAST ONE YOU MENTIONED, I DON'T HAVE ANY KNOWLEDGE OF, SO I COULDN'T SUMMARIZE THAT, BUT SOMETHING ABOUT OF OPEN OR ALTERNATE RESPONSE, BEHAVIORAL HEALTH ALTERNATIVE RESPONSE.
9-1-1 CALLS AND GET FOLKS HAVING A GOOD FEEL FOR QUICKLY.
WHAT ABOUT COUNCIL MEMBER SHIMONI OR [INAUDIBLE]? YEAH.
OK, LET'S DO IT FIRST, BUT THEN GIVE EVERYONE GRATEFUL PUMPING BOARD SEEING FLAGSTAFF THE TEAM.
FIRST AND FOREMOST, I WANT TO TAKE CARE OF SEEING FLAGSTAFF.
FOR INSTANCE AND THEN EFFORTS FOR RETENTION AND RECRUITMENT, SO WHETHER IT'S COMPENSATION AND BENEFITS, SO.
AND THE [INAUDIBLE] TO PICTURE THIS DOESN'T MEAN THAT IT'S PRESENTED BY MS. SUDA EARLIER AND MORE IN DETAIL IN THE PICTURE BUDGET RETREAT.
NUMBER TWO, I WISH TO FULLY FUND OUR INFRASTRUCTURE NEEDS TO THE TUNE OF 55 MILLION, WHICH IS A WATER WASTEWATER PUBLIC SAFETY.
HOPEFULLY, WE COULD SECURE FEDERAL AND STATE DOLLARS TO DEFEND THOSE RATHER THAN ON MEASURES.
BUT IN TERMS OF ECONOMIC VITALITY.
CONTINUING EFFORT TO ATTRACT ANOTHER DIRECT FLIGHTS TO AND FROM THE.
AND FOR FUNDING AND SUPPORT FOR BUSINESS ATTRACTION AND BUSINESS RETENTION AND
[05:05:08]
EXPANSION PROGRAMS. IMPLEMENT OUR BOSS, OUR BUSINESS WANTS OFFSHORE SERVICES, [INAUDIBLE] AND END SERVICES AT CITY HALL.COUNCIL HAS PROVED THAT IN THIS CURRENT BUDGET.
CREATE A ROBUST WORKFORCE DEVELOPMENT PROGRAM THAT INCLUDES JOB TRAINING, APPRENTICESHIP, INTERNSHIP, AND MENTORSHIP BEGINNING MIDDLE SCHOOL LEVEL.
AND THIRD, IN TERMS OF IDENTIFYING THE FUNDING GAPS FOR SOCIAL SERVICE PROVIDERS.
THE SOCIAL SAFETY NETS, OUR NONPROFIT PARTNERS AND CREATE AND TRY TO CREATE SYNERGY AND COLLABORATION IN ADDRESSING BOTH THOSE NEEDS AND BUILDING THOSE GAPS.
THIRD, IN TERMS OF INFRASTRUCTURE PLANNING.
SOME PURSUE THE DOWNTOWN MILE MASTER PLANNED.
POWELL EXTENSION PLANNING PROCESS.
AND IN TERMS OF FISCAL RESPONSIBILITY, TARGET A FINE BALANCE OF 30 PERCENT IN THE GENERAL FUND.
30? 30 FOR INFRASTRUCTURE DID I GET THAT? GENERAL FUND BALANCE 30 PERCENT.
IS THAT LIKE THAT'S THE RESERVES 30 PERCENT? YES.
OK, SO HIGH LEVELS, THEN I'M HERE.
A LITTLE BIT DIFFERENT THAN THE OTHER COUNCIL MEMBER WHICH MAIN PART OF WHO WAS TAKING CARE OF THE ORGANIZATION ITSELF, MAINTAINING, RETAINING, RECRUITING THE TALENT THAT WE NEED TO OPERATE AS AN ORGANIZATION.
UH, IDENTIFYING GAPS, SO TAKING CARE OF OUR NONPROFITS IN OUR COMMUNITY AND THEN WITHIN INFRASTRUCTURE WAS ALSO A HUGE PRIORITY FOR YOU AS WELL, WITH MANY THINGS THAT ARE UNDERNEATH THAT AND THEN POTENTIALLY LOOKING AT A CHANGE IN THE RESERVES FOR THE GENERAL FUND AND THE ECONOMIC DEVELOPMENT PART OF IT AND THE ECONOMIC AND WORKFORCE DEVELOPMENT.
SO THE AIRPORT AND THE BUSINESS AND THE, YOU KNOW, THE AIRPORT BUSINESS ATTRACTION? YES.
DO WE HAVE COUNCIL MEMBER SHIMONI OR VICE MAYOR ON THE LINE? AND YOU HAVE I'M HAPPY TO LET VICE MAYOR, GO FIRST, IF SHE'S READY.
OH, THANK YOU, COUNCIL MEMBER SHIMONI.
SO FIRST OF ALL, THANK YOU, EVERYONE.
AND IN TERMS OF MY HOPES AND EXPECTATIONS.
WE HAVE DECLARED EITHER EMERGENCIES OR A CRISIS IN BOTH HOUSING AND CLIMATE.
CLIMATE CHANGE AND I WANT TO SEE US.
ASIDE FROM ANY BONDING, BUT FUND THEM ADEQUATELY SO THAT THEY CAN ACHIEVE SOME SUCCESS WITH PROJECTS, I I KNOW THAT NEITHER ONE HAS A VERY LARGE BUDGET AND WE HAVE A LOT OF LARGE NEEDS IN BOTH OF THOSE AREAS.
AND FAIR COMPENSATION FOR STAFF.
I HOPE THAT AND AND IT WOULD BE MY EXPECTATION THAT WE WOULD CONTINUE ON THE PATH THAT WE'RE ON NOW AND MAKE SURE THAT WE CONTINUE TO FAIRLY COMPENSATE OUR EMPLOYEES BECAUSE AFTER ALL, NOTHING GETS DONE WITHOUT THOSE EMPLOYEES AND FLOOD MITIGATION.
WE NEED ALL HANDS ON THIS AND AND ON IT QUICKLY.
[05:10:02]
WE HAVE WE HAVE MANY VERY IMMEDIATE NEEDS, AND WE NEED TO WE NEED TO FIND THE MONEY TO BE ABLE TO GET PROJECTS DONE.FANTASTIC, SO WHAT I HEAR YOU SAYING, VICE MAYOR IS NOTICING A RED CAPE APPROACH OR NEEDING TO PUT OUT A FIRE WHEN IT COMES TO HOUSING AND CLIMATE, SPECIFICALLY FUNDING THOSE, YOU KNOW, OUTSIDE OF BONDS, POTENTIALLY BONDS ALSO CONTRIBUTING TO THAT AND THEN TAKING CARE OF THE ORGANIZATION WITH COMPENSATION AS MAJOR PRIORITIES.
AND ONE THING THAT I FORGOT TO SAY IN TERMS OF THE CLIMATE EMERGENCY AND HOUSING IS SPECIFICALLY TARGETING AND HOUSING, IT KIND OF GOES WITHOUT SAYING.
BUT THE THE EQUITY ASPECTS OF THE PROJECTS THAT WE THAT WE NEED TO GET DONE, I'M I'M ESPECIALLY CONCERNS ABOUT MAKING SURE THAT THOSE IN OUR COMMUNITY THAT WILL BE MOST AFFECTED BY RISING HOME PRICES AND RENT AND RENTAL COSTS, AS WELL AS CLIMATE CHANGE THAT WE ARE TARGETING PROJECTS THAT ARE GOING TO BENEFIT THOSE POPULATIONS.
FANTASTIC, SO THROUGH THE LENS OF EQUITY AS WELL.
COUNCIL MEMBER SHIMONI, NOTHING TONIGHT, THANK YOU.
THAT'S KIND OF AN INTERNAL JOKE TO OUR TEAM, KATIE.
YOU KNOW, MY PRIORITIES WERE VERY MUCH ALREADY SAID, I'M GOING TO GO AHEAD AND JUST VERBALIZE THEM TO VICE MAYOR'S COMMENTS ABOUT THE EMERGENCIES.
THOSE WERE MY FIRST TWO POINTS AS WELL.
WE DECLARED EMERGENCIES AT THE CITY, ONE FOR THE CLIMATE AND ONE FOR HOUSING.
AND I DO WANT TO ADD A SPECIFIC LIKE A SPECIAL FOCUS ON THOSE TWO AREAS OUTSIDE OF THE BOND INITIATIVES OR ANY FEDERAL FUNDING THAT WE MIGHT BE RECEIVING AS WELL.
SO THANK YOU, VICE MAYOR, FOR BRINGING THAT UP ON THE TOPIC OF CLIMATE.
YOU KNOW, WE CAN THROW MONEY AT THIS, BUT INTERNALLY IN OUR LEADERSHIP AND OUR DIVISIONS, WE NEED TO SEE ALL OF US AND ALL OF YOU WHO ARE IN THESE POSITIONS OF LEADERSHIP, EMBRACING THESE VALUES, EMBRACING THESE GOALS OF NET NEUTRALITY BY 2030, WHICH IS EXTREMELY AMBITIOUS AND COMING UP PRETTY QUICK.
AND I'D LOVE TO SEE US START WORKING TOWARDS THAT IN THIS BUDGET CYCLE.
THE ULTIMATE POLICY DOCUMENT, AS WE TALKED ABOUT AT THE BEGINNING OF THIS MEETING TODAY, WE REALLY NEED YOUR LEADERSHIP DIVISION, HEADS AND BUDGET TEAM AND WORKING TOWARDS NEUTRALITY BY 2030, IF NOT EVEN BEFORE THAT, SO THAT WE CAN MAKE SURE WE GET THERE.
I THINK THAT'S GOING TO BE EXTREMELY DIFFICULT.
SO I'M REALLY HOPING THAT WITH EACH DIVISION UPDATE TO US IN THE BUDGET UPDATE PROCESS AND REQUEST PROCESS THAT WE SPEAK TO HOW EACH DIVISION PLANS TO GET TO NET NEUTRALITY, WHICH IS A HUGE GOAL AND A HUGE CHALLENGE.
BUT I'M GOING TO GO AHEAD AND SAY, LET'S, LET'S CHALLENGE OUR TEAM TO DO THAT.
AND ALL OF YOU TO DO THAT AND BE CLIMATE AMBASSADORS IN YOUR OWN CAPACITIES.
SO THAT'S A BIG PRIORITY TO ME, IS THAT NET NEUTRALITY WITHIN EACH OF OUR DIVISIONS, NOT JUST ADDING FUNDS TO OUR SUSTAINABILITY SECTION, BUT EACH DIVISION REALLY EMBRACING THAT AS PART OF THE CARBON OR THE CLIMATE TOPIC AS WELL.
THE ACTIVE TRANSPORTATION MASTER PLAN IS SIGNIFICANTLY UNDERFUNDED AND ALTHOUGH WE HAVEN'T PASSED THAT AS A CITY COUNCIL YET, A LOT OF THOSE VALUES AND AND DESIRES FOR IMPLEMENTING CHANGE IN OUR TRANSPORTATION NETWORK HAS BEEN AROUND FOR 50, 60 PLUS YEARS.
SO IT ALWAYS COMES DOWN TO FUNDING, IS WHAT I'VE LEARNED.
AND SO I REALLY WANT TO SEE US PRIORITIZE THAT MASTER PLAN, THE ACTIVE TRANSPORTATION MASTERPLAN, AND FIND WAYS TO FURTHER FUND IT ABOVE AND BEYOND FOR 19 MONEY, WHICH JUST DOESN'T GET US WHERE WE NEED TO GET TO.
I SO APPRECIATE ALL MY COLLEAGUES TALKING ABOUT EMPLOYEE COMPENSATION AND LEADERSHIP, REALLY HIGHLIGHTING THAT WELL TONIGHT AND PRIORITIZING THAT THERE NEEDS TO BE A CONTINUED PRIORITY EVERY YEAR.
AND I'M JUST SO GRATEFUL THAT THAT SEEMS TO BE A TOP PRIORITY FOR THIS AGENCY.
AND THEN I LIKE FOR US TO DIVE DEEPER INTO THE PRIORITY BUDGET PBB INSIGHTS
[05:15:01]
AND WAYS THAT THE CITY CAN BECOME MORE EFFICIENT.AND RICK, YOU AND I WILL SET UP FOLLOW UP MEETINGS, TOO, BUT I THINK THE COUNCIL SHOULD BE PART OF THOSE DISCUSSIONS MOVING FORWARD.
AND THOSE WERE MY THAT WAS MY LIST.
AND YEAH, KATIE, AGAIN, THANK YOU TO YOU FOR YOUR HELP FACILITATING US TODAY AND SEE MANAGER RICK, BRANDY, HEIDI, CHRIS, NICOLE, OUR WHOLE BUDGET TEAM.
GREAT MEETING TODAY AND REALLY LOOKING FORWARD TO OUR UPCOMING MEETING NEXT MONTH.
THANK YOU, COUNCIL MEMBER SHIMONI.
SO IF I HAVE THAT RIGHT, HOUSING, CLIMATE, TRANSPORTATION JUST REAL HIGH LEVEL.
UM, AND THE ORGANIZATION ARE BIG PRIORITIES MOVING FORWARD WITH THE BUDGET.
ALSO LOOKING AT WAYS FOR MORE EFFICIENCY.
DID I GET THAT RIGHT? YES, AND I MIGHT AS WELL ADD STORM WATER, I THINK THAT'S A GIVEN.
BUT YEAH, IF YOU'RE WRITING THIS DOWN, YOU MIGHT AS WELL ADD A TALLY FOR ME IN THAT CATEGORY TO THANK YOU.
YES, AND A LOT OF OVERLAP WITH WHERE YOUR PRIORITIES ARE.
SO THERE'S A LOT OF CONSENSUS, ACTUALLY MORE SO THAN I WAS EXPECTING.
AND KATIE I DO WANT TO ECHO ALSO WHAT COUNCIL MEMBER SALAS SAID ABOUT WORKFORCE TRAINING AND ENTREPRENEURSHIP IN THAT NOT ENTREPRENEURSHIP, BUT WORKFORCE TRAINING IS ANOTHER WAS IT APPRENTICESHIP APPRENTICESHIP? THAT'S IT.
I 100 PERCENT SUPPORT THAT AND WOULD LOVE TO SEE OUR AGENCY FURTHER INVEST IN BETTER WAYS TO PROVIDE APPRENTICESHIP OPPORTUNITY FOR STUDENTS, WHICH COULD BE A PIPELINE FOR EMPLOYEES, WHICH WE SEEM TO BE STRUGGLING WITH.
MR. CLIFTON, YOU MENTIONED THAT WE HAVE A BOND COMMITTEE, AND I JUST WANT TO MENTION THAT HOUSING IS AN IMPORTANT PART OF THAT.
AND THE PEOPLE I TALKED TO IN THAT INDUSTRY ARE TELLING ME THAT AN AMAZING PERCENTAGE OF THE NEW HOUSING THAT IS BUILT IS BEING PURCHASED BY PEOPLE THAT DON'T LIVE IN FLAGSTAFF.
IT'S PEOPLE THAT LIVE IN PHOENIX OR LIVE IN CALIFORNIA, AND THEY COME IN.
SO THE GOAL IF THERE IS GOING TO BE A BOND HAS TO BE SOMEHOW FOCUSED ON PEOPLE THAT LIVE IN FLAGSTAFF.
IN OTHER WORDS, PROVIDE FOR OUR LOCAL COMMUNITY AS OPPOSED TO TURNING IT INTO A RECREATION FACILITY FOR PHOENIX PEOPLE IN SAN DIEGO OR L.A.
AND THAT MIGHT INVOLVE SPENDING SOME TIME LOBBYING SOME EFFORTS, TALKING TO OUR LEGISLATURE ABOUT CHANGING SOME OF THE LAWS.
AND I UNDERSTAND THE RESTRICTIONS WE HAVE NOW, BUT WE NEED TO SPEND SOME EFFORT TRYING TO GET SOME OF THOSE LAWS CHANGED.
THE OTHER THING I'LL MENTION WAS THAT SINCE I'VE BEEN ON COUNCIL, THERE WAS AN EFFORT TO REDUCE THE LEVEL OF RESERVES THAT THE CITY MAINTAINS, AND I DON'T THINK ANYBODY THAT'S ON COUNCIL NOW WAS PART OF THAT EFFORT.
BUT THERE WAS A AN EFFORT BY CERTAIN COUNCIL MEMBERS TO REDUCE OUR RESERVES.
AND I DIDN'T SUPPORT THAT THEN, AND THE COUNCIL DIDN'T SUPPORT THAT THEN, AND I DON'T SUPPORT THAT NOW.
I THINK FOR THE REASONS THAT RICK AND OTHERS TALK ABOUT SITTING AT THIS TABLE RIGHT IN FRONT OF US IS THAT THE REASON THAT WE SURVIVED WELL AND GOT THROUGH THE MINI RECESSION AND WE'LL GET THROUGH THE FUTURE RECESSIONS IS THAT WE HAVE RESERVES AND THEY'RE VERY IMPORTANT AND WE NEED TO KEEP THEM.
AT LEAST KEEP THEM WHERE WE'RE AT RIGHT NOW.
I JUST WANTED TO SAY THAT I THINK IT'S VERY SMART THAT NICOLE ANTONOPOULOS IS NOW ON THE BUDGET AND THAT PROGRAM IS NOT GOING TO NEW ARRIVALS.
I THINK THAT'S VERY SMART AND AS WE MOVE FORWARD, IT DOES APPEAR THAT THE CLIMATE BUDGET IS SEVERELY UNDERFUNDED, SO WE'LL HAVE A GOOD VOICE IN THAT.
ASK I HAVE EACH OF YOU COUNCIL MEMBERS.
AND MAYOR AND VICE MAYOR IS IF THERE ARE ANY ADDITIONAL QUESTIONS.
CURIOSITIES THINGS THAT INFORMATION YOU MIGHT NEED IN ORDER TO MAKE SOME DECISIONS MOVING FORWARD THAT YOUR BUDGETING TEAM OR THE PEOPLE ONLINE AND IN THE ROOM COULD GATHER
[05:20:05]
FOR US FOR THE NEXT MEETING? WELL, THEY'VE DONE A PRETTY GOOD JOB SO FAR.THEN IF IS THERE ANY OTHER QUESTIONS, ARE WE GETTING READY TO CLOSE? WE ARE GETTING READY TO CLOSE.
MAY I TAKE A MINUTE? OF COURSE ONLY ONE.
IT'S BEEN A GREAT DAY AND I WANT TO EXTEND SOME THANKS AND PROBABLY DO SO AT THE RISK OF OVERLOOKING SOME PEOPLE, THANKS TO PUBLIC WORKS FOR THE GREAT VENUE.
WE KNOW THAT THERE'S IMPROVEMENTS TO THE AUDIO VIDEO HAPPENING.
WE'LL RETREAT, MAYBE IN THE FUTURE, THE FUTURE TO ENJOY THOSE IMPROVEMENTS, BUT THIS ACTUALLY WORKED QUITE WELL.
THANK YOU FOR THOSE WHO SET UP THE ROOM AND GAVE US FOOD TODAY.
A LOT OF IT REALLY SHOWED THE PRESENTATIONS TODAY THAT A LOT OF WORK WENT INTO THIS, AND MY THANKS GO TO ALL STAFF WHO HAVE BEEN INVOLVED.
THOSE WHO HAVE BEEN LISTENING VIRTUALLY.
THANK YOU TO THE COUNCIL FOR YOUR GREAT ATTENTION.
WE ASK A LOT OF YOU IN TERMS OF YOUR TIME AND MORE IMPORTANTLY, YOUR BRAIN POWER AND YOUR THOUGHTFULNESS.
IT WAS A LONG MEETING THE OTHER DAY THAT WAS TWO DAYS AGO.
HERE YOU ARE THURSDAY HAVING YET ANOTHER LONG MEETING.
WE WANT YOU TO KNOW THAT WE RECOGNIZE THAT AND APPRECIATE IT.
LAST, I WANT TO THANK OUR STELLAR FACILITATOR.
I DON'T KNOW, KATIE, IF YOU'VE BEEN WITH US BEFORE IN THIS CAPACITY, I KNOW YOU'VE WORKED WITH MANY IN THIS ORGANIZATION, IN OTHER CAPACITIES.
IS THIS YOUR FIRST TIME IN THIS CAPACITY, IN THIS CAPACITY, BUT IT WON'T BE YOUR LAST AND WE SO GREATLY TO LOOK FORWARD TO HAVING YOU COME BACK.
YOU HAVE KEPT US ON TASK ON TIME.
YOU'VE INJECTED SOME NICE HUMOR AND LIGHTHEARTEDNESS INTO A RATHER HEFTY DISCUSSION.
BIG PROPS FOR KATIE [INAUDIBLE] YOU WERE LUCKY TO DO SO BEFORE WE'RE GOING TO CLOSE UP AND THEN WE'RE GOING TO OPEN UP TO PUBLIC PARTICIPATION IF THERE'S ANY PUBLIC COMMENTS.
THIS IS A LITTLE CAMPY, BUT YOU'RE GOING TO ALL INDULGE ME.
SO PLEASE STAND UP FOR A MOMENT AND YOU'RE GOING TO TURN TO THE PERSON TO THE LEFT OF YOU.
AND THEN YOU'RE GOING TO TURN TO THE PERSON, TO THE RIGHT OF YOU, AND YOU'RE GOING TO SAY THANK YOU FOR YOUR UNIQUE PERSPECTIVE AND THE PERSON WHO IS SHORTEST WILL GO FIRST.
THE PERSON WHO'S SHORTEST WILL GO FIRST AND SAY THANK YOU FOR YOUR UNIQUE PERSPECTIVE.
AND THEN THEY CAN SAY IT BACK, AND THEN YOU CAN GO TO THE PERSON TO YOUR LEFT .
WHY DID I HAVE YOU DO THAT? WHY DID I HAVE YOU DO THAT? [INAUDIBLE] AND WHAT WAS THAT SOMETHING THAT MADE YOU FEEL CAN BE A PART OF IT? BECAUSE I HAVE THE POWER TO WIELD YOU TO MAKE YOU DO SOMETHING HAPPY? NO, BECAUSE IT IS ALL OF YOUR UNIQUE PERSPECTIVES THAT MAKES THIS TEAM SO STRONG.
I AM A PROUD CITIZEN OF THIS COMMUNITY.
I AM PROUD CITIZENS IN THIS COMMUNITY BECAUSE YOU ARE SO INNOVATIVE IN YOUR APPROACH AND YOUR CONSIDERATION.
SO ON BEHALF OF THE COMMUNITY MEMBERS, I WANT TO SAY THANK YOU TO EACH OF YOU.
SO IF WE HAVE ANY PUBLIC MEMBERS OR COMMUNITY MEMBERS ON THE LINE, WE WANT TO OPEN IT UP TO PUBLIC COMMENT.
WE DO NOT HAVE ANYBODY HERE IN PERSON AND I HAVE NOT HAD ANYBODY JOIN ONLINE, SO WE DO NOT HAVE ANY PUBLIC COMMENT FOR THIS AFTERNOON.
THEN I WISH YOU ALL A WONDERFUL WEEKEND AND WONDERFUL HOLIDAYS AND WONDERFUL BUDGETING PROCESS.
THANK YOU, KATIE.
* This transcript was compiled from uncorrected Closed Captioning.