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GO AHEAD AND GET STARTED.

[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).]

[00:00:02]

GOOD MORNING, EVERYONE.

I WOULD LIKE TO CALL THIS MEETING TO ORDER.

CITY CLERK, MAY WE HAVE ROLL CALL? YES.

MAYOR DAGGETT HERE.

VICE MAYOR ASLAN HERE.

COUNCIL MEMBER HARRIS HERE.

COUNCIL MEMBER HOUSE HERE.

COUNCIL MEMBER MATTHEWS.

COUNCIL MEMBER MCCARTHY COUNCIL MEMBER SWEET HERE.

OKAY. THANK YOU.

VICE MAYOR ASLAN WOULD YOU GIVE US THE PLEDGE OF ALLEGIANCE PLEASE.

[INAUDIBLE] I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION, UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

THANK YOU. THE MISSION OF THE CITY OF FLAGSTAFF IS TO PROTECT AND ENHANCE THE QUALITY OF LIFE FOR ALL.

COUNCIL MEMBER HOUSE WOULD YOU READ THE LAND ACKNOWLEDGMENT? BE MY HONOR MAYOR.

FLAGSTAFF CITY COUNCIL HUMBLY ACKNOWLEDGES THE ANCESTRAL HOMELANDS OF THIS AREA'S INDIGENOUS NATIONS AND ORIGINAL STEWARDS.

THESE LANDS STILL INHABITED BY NATIVE DESCENDANTS, BORDER MOUNTAINS 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 AS HOME.

THANK YOU VERY MUCH.

[4. City Council Budget Retreat STAFF RECOMMENDED ACTION: Presentation and Discussion Regarding Budget Process and Expectations.]

SO, STAFF, WHAT FUN DO YOU HAVE IN STORE FOR US TODAY? ALL KINDS OF FUN MAYOR.

I'LL KICK THINGS OFF. I WILL QUICKLY TURN IT OVER TO OUR FACILITATOR, KATIE, WHO WAS INTRODUCED TO YOU YESTERDAY, AND THEN SHE'S GOING TO HAND IT OVER TO HEIDI D ERRYBERRY. AND TODAY'S AGENDA, AS YOU CAN SEE, IS MOSTLY ABOUT BUDGET.

AND THIS IS THE START OF A VERY PROTRACTED AND IMPORTANT PROCESS THAT WILL SPAN THE NEXT SEVERAL MONTHS, CULMINATING IN COORDINATES SOMETIME AT THE END OF JUNE, EARLY JULY.

AND WE KNOW THAT THAT WILL NOW BE VERY EARLY JULY BECAUSE WE HAD THAT DISCUSSION YESTERDAY.

I WANT TO THANK YOU ALL FOR YESTERDAY AND YOUR ENGAGEMENT.

IT WAS A GREAT RETREAT.

I ALSO WANT TO THANK YOU FOR BEING HERE THIS MORNING.

WE KNOW THAT IT'S VERY SLOW GOING OUT THERE.

WE HOPE THAT EVERYBODY WAS SAFE GETTING IN HERE.

AND IT'S GREAT THAT WE COULD BE A LITTLE BIT NIMBLE HERE AND ADD 15 MINUTES TO OUR START TIME.

KATIE WILL WALK US A LITTLE BIT THROUGH THE TIME SCHEDULING TODAY.

GOING BACK TO YESTERDAY, I WAS REMISS WHEN I WAS OFFERING UP SOME GRATITUDE FOR THOSE WHO HAVE PREPARED THE VENUE AND THE WONDERFUL MEALS AND EVERYTHING THAT WE ENJOYED YESTERDAY.

COUNCIL MEMBER SWEET I FORGOT TO MENTION YOUR NAME AND I VERY MUCH INTENDED TO DO THAT.

YOU ALWAYS HAVE A HAND IN THINGS KIND OF BEHIND THE SCENES, AND I KNOW THAT YOU HAD INVOLVEMENT IN PREPARING YESTERDAY'S MENU.

I GUESS YOU'RE THE PART YOU'RE ON THE MENU ADVISING COMMITTEE.

SO TEAM STRUCTURE, RIGHT.

WE REALLY APPRECIATE THAT.

SO SO THANK YOU. VERY THOUGHTFUL AND MUCH APPRECIATED.

YES. WE'VE ALREADY STARTED THIS MORNING WITH AN ALLIANCE MEETING.

IT WAS WELL ATTENDED.

IT WAS, OF COURSE, VIRTUAL AND GOOD TOPICS.

THANK YOU ALL WHO ATTENDED THAT.

SO WE ARE ON OUR WAY.

KATIE, ARE YOU READY? AND LET'S LET'S ONCE AGAIN WELCOME KATIE.

SO WHEN IT COMES TO THE INTRO, I'M ACTUALLY GOING TO CUT IT SHORT TODAY SO THAT WE CAN MAKE SURE WE HAVE TIME FOR ALL OF OUR AGENDA ITEMS TODAY.

BUT I WANTED TO SAY GOOD MORNING.

COUNCIL MEMBERS [INAUDIBLE] AND I WANTED TO JUST SUGGEST THAT I HEARD A LOT OF GREAT FEEDBACK ABOUT YESTERDAY AND WHAT WE DISCUSSED, AND THAT'S REALLY GREAT.

AND SO AS YOU PROGRESS FORWARD, YOU MIGHT CONSIDER EVEN ADDING THINGS LIKE APPRECIATIONS TO THE END OR BEGINNING OF YOUR MEETINGS THAT ALLOW FOR AN OPPORTUNITY TO CONNECT.

AND THAT'S JUST ONE SHORT RECOMMENDATION TO CONSIDER.

THAT BEING SAID, I CAN ALSO TALK ABOUT THAT MORE OFFLINE.

SO HOW IS OUR SCHEDULE SHIFTING TODAY? OBVIOUSLY, WE ARE STARTING I'M JUST 15 MINUTES A LITTLE BIT LATER AT 10:30 AND I BELIEVE THAT OUR FIRST PRESENTATION, WE'RE GOING TO TRY TO SHORTEN THAT A LITTLE BIT AND THEN WE'RE HOPING TO HIT LUNCH AROUND NOON AND I WILL JUST NOTIFY YOU AND SHIFT IT AS WE NEED TO.

BUT ULTIMATELY, THE LIKELIHOOD OF US GOING TILL 2:45 IS MUCH HIGHER.

[00:05:03]

SO I JUST WANTED EVERYONE TO ACKNOWLEDGE THAT THAT TIME AND TIME IS JUST A LITTLE BIT LATER.

AND JUST A REMINDER FOR THOSE PRESENTERS THAT I'LL GIVE YOU A FIVE MINUTE WARNING THAT WILL LOOK LIKE THIS PIECE OF PAPER AND THEN A ONE MINUTE WARNING.

AND THAT'S JUST TO HELP US STAY ON TIME.

AND ARE THERE ANY QUESTIONS FROM PRESENTERS OR ANYONE ON THE COUNCIL? OKAY, WELL, WITHOUT FURTHER ADO, LET'S GET STARTED.

HEIDI DERRYBERRY [APPLAUSE].

GOOD MORNING, MAYOR, VICE MAYOR AND COUNCIL MEMBERS.

MY NAME IS HEIDI DERRYBERRY I AM THE CITY'S ASSISTANT FINANCE DIRECTOR AND I'M HERE THIS MORNING.

[INAUDIBLE] FIRST OF ALL, JUST TO TALK BRIEFLY ABOUT OUR AGENDA, WHICH YOU ALL HAVE, I BELIEVE.

WE'RE GOING TO START OFF IN THE BUDGET INTRODUCTION, WHICH MYSELF AND RANDY WILL BE TALKING ABOUT, THAT WE'RE GOING TO TALK ABOUT MAINTAINING FISCAL HEALTH, OUR PRIORITY BASED BUDGETING SYSTEM, REVENUE UPDATES AND THE BUDGET TEAM FOCUS FOR THE CYCLE AND THEN WRAP THE DAY UP WITH SOME COUNCIL EXPECTATIONS FOR OUR NEXT RETREAT, WHICH IS LESS THAN TWO WEEKS AWAY.

SO YOU'LL GET TO SEE US ALL AGAIN BACK HERE IN A COUPLE WEEKS.

THAT NEXT RETREAT IS MUCH MORE DETAILED FOR BUDGET.

WE WILL BE DIVING INTO STUFF TODAY, REALLY HIGH LEVEL, JUST KIND OF INTRODUCING THE PROCESS.

WITH THAT I JUST KIND OF WANT TO INTRODUCE THE BUDGET TEAM, WHICH IS A COUPLE OF SLIDES FROM NOW.

BUT TALKING ABOUT OUR CHARTER A COUPLE OF YEARS AGO, WE CREATED AN ACTUAL BUDGETING CHARTER FOR OUR GROUP.

WE HAVE BEEN AROUND, I DON'T KNOW, LONG BEFORE I STARTED, OVER SEVEN YEARS, ALMOST SEVEN YEARS AGO, BUT WE ACTUALLY CREATED AN UNOFFICIAL CHARTER A COUPLE YEARS AGO.

SO I'M GOING TO TALK TO YOU TODAY ABOUT OUR PURPOSE, OUR COMPOSITION, THE MEETINGS WE HOLD, THE ROLES WE HAVE IN OUR CODE OF CONDUCT.

SO THE PURPOSE OF THE BUDGET TEAM IS WE ARE TO PROVIDE FINANCIAL ADVISEMENT AND STRATEGIC DIRECTION TO THE CITY ORGANIZATION AND TO PROTECT THE INTERESTS OF THE PUBLIC THROUGH SOUND FISCAL SERVICES.

WE DO THIS THROUGH PROVIDING FISCAL OVERSIGHT AND FINANCIAL DECISION MAKING ON AN ONGOING BASIS, FORECAST FOR SHORT TERM AND LONG TERM FINANCIAL LANDSCAPES.

WE PROVIDE CONSTANT FISCAL STEWARDSHIP TO ENSURE INTEGRITY AND CREDIBILITY, TRANSPARENCY, CREDIBILITY, ADAPTABILITY, EXCELLENCE AND COLLABORATION.

AND WE PROACTIVELY ENSURE FISCAL STABILITY THROUGH EFFECTIVE RECESSION PLANNING.

ALL THESE SMILING FACES.

OUR TEAM IS ACTUALLY COMPRISED OF 12 DIFFERENT MEMBERS.

CURRENTLY, THERE'S 11 OF US SINCE WE HAVE HEIDI HANSON AN ACTING ROLE AS THE DEPUTY CITY MANAGER.

SHE IS NORMALLY A MEMBER ON THE TEAM [INAUDIBLE] IN HER DIRECTOR ROLE, BUT OUR TEAM IS MADE UP OF GREG.

SHANNON, HANSON, NICOLE, SCOTT, RICK, RANDY, BRANDI, MYSELF, CHRIS, RUDY AND JARED.

SO YOU CAN SEE WE HAVE A PRETTY BROAD GROUP.

UNTIL A FEW YEARS AGO, WE WERE A TEAM OF NINE.

OUR MOST RECENT ADS WERE FIRST.

WE HAD HEIDI HANSEN JOIN THE TEAM BACK AT THE BEGINNING, I THINK OF COVID TO GET KIND OF THE ECONOMIC VITALITY LENS TO HELP US ON OUR TEAM.

AND THEN I BELIEVE A YEAR AGO IS WHEN NICOLE JOINED US SO WE COULD START LOOKING AT EVERYTHING WE DO THROUGH THE LENS OF SUSTAINABILITY.

AND THEN OUR MOST RECENT MEMBER WE ADDED JUST A COUPLE OF MONTHS AGO IS SCOTT OVERTON FROM PUBLIC WORKS TO KIND OF START LETTING US HAVE SOMEONE FROM THE OPERATIONS SIDE OF THE CITY ON THAT TEAM, BECAUSE BEFORE YOU COULD SEE THERE WAS A LOT OF PEOPLE FROM THE MAYOR'S OFFICE AS WELL AS FINANCE, WHICH OBVIOUSLY MAKES SENSE WITH BUDGET.

BUT IT'S GREAT FOR US TO GET SOME OTHER PERSPECTIVES ON THE TEAM.

SO WE'RE FOREVER A GROWING TEAM.

WE ALSO HAVE JARED, WHO IS OUR EAC REP.

I DON'T THINK HE'S HERE WITH US TODAY, BUT THAT'S WHO MAKES UP THE COMPOSITION OF OUR TEAM.

MEETINGS. SO RIGHT NOW WE MEET EVERY SINGLE WEEK ON THURSDAY MORNINGS AT A MINIMUM AS NEEDED.

WE MEET MULTIPLE TIMES A WEEK OR A MONTH, ESPECIALLY DURING COVID.

WE MET ALMOST DAILY, SO I THINK WE ALL WERE GETTING A LITTLE TIRED OF EACH OTHER DURING THAT TIME.

BUT THERE WAS SO MUCH GOING ON, WE JUST COULDN'T KEEP UP WITH THE CHANGES AND LOOKING AT THINGS.

SO WE MET ALMOST ON A DAILY BASIS.

AND THEN WE FOUND IT'S REALLY BENEFICIAL TO US TO MEET.

SO WE DO MEET EVERY WEEK, AT LEAST ONCE.

SOME OTHER MEETINGS WE HAVE.

WE HAVE A BIANNUAL PRIORITY BASED BUDGET COUNCIL RETREAT, WHICH I THINK WE HEARD ABOUT MAYBE A LITTLE BIT IN SEPTEMBER OF THE ODD YEARS.

WE WILL BE HOLDING THOSE MEETINGS.

WE HAVE A BUDGET TEAM RETREAT WHERE WE BEGIN EARLY IN OCTOBER IS WHERE WE START TALKING ABOUT THE BUDGET.

[00:10:03]

SO OBVIOUSLY MANY MONTHS BEFORE WE EVEN GET BEFORE YOU GUYS.

COUNCIL BUDGET RETREATS, WE HAVE A DECEMBER JANUARY RETREAT, WHICH IS WHAT YOU'RE IN TODAY, AND THEN WE HAVE A FEBRUARY RETREAT IN APRIL.

THEN AS A BUDGET TEAM, WE HAVE DIVISION REVIEW MEETINGS, WHICH ARE PART OF THE BUDGET PROCESS WHEN WE TALK WITH EVERY DIVISION.

ALL THE REQUESTS AND NEEDS.

AND THAT IS ACTUALLY 15 DAYS STRAIGHT THAT THE BUDGET TEAM MEETS TOGETHER THIS YEAR, WILL BE MEETING IN THIS ROOM, TALKING WITH EVERYBODY ABOUT BUDGET. AND THEN AS NEEDED, AS I MENTIONED DURING RECESSIONARY OR EMERGENCY RESPONSE TIMES, WE WILL HAVE EXTRA NEEDS.

SO WE HAVE MANY ROLES THAT WE HAVE ON THE BUDGET TEAM.

WE TALK ABOUT STRATEGIC LEADERSHIP ROLE, WHERE WE DO STRATEGIC PLANNING TO BOLSTER THE CITY'S FINANCIAL HEALTH.

DOING AN ASSESSMENT ROLE WHERE WE ARE ASSESSING ORGANIZATIONAL EXPENDITURES THROUGH PBB METHODOLOGIES TO ENSURE THERE ARE PROGRAMS, SERVICES AND RESOURCES THAT ALIGN WITH OUR COMMUNITY PRIORITIES.

WE HAVE A BUDGETARY ROLE PROVIDING OVERSIGHT OF THE FORMULATION OF THE ANNUAL CITY BUDGET FOR ADOPTION BY COUNCIL.

AND THEN JUST THE LEADERSHIP DEVELOPMENT ROLE.

AND WE ENCOURAGE AND NURTURE THE DEVELOPMENT OF PRESENT AND FUTURE SKILL MEMBERS.

WE'VE HAD SEVERAL DIFFERENT CITIES THAT HAVE JOINED THE BUDGET TEAM JUST TO COME AND HEAR WHAT WE DO.

AND JUST AS A LEARNING OPPORTUNITY.

OUR CODE OF CONDUCT HOPEFULLY IS NO SURPRISE.

WE TRY TO BE PROFESSIONAL, RESPECTFUL AND COURTEOUS OF EACH OTHER.

WE ACKNOWLEDGE THE SENSITIVITY OF DISCUSSIONS.

SO BUDGET TEAM OFTEN TIMES IS TALKING ABOUT PERSONNEL CHANGES, COMPENSATION CHANGES, RECESSIONARY PLANNING.

SO WE TALK ABOUT A LOT OF THINGS BEFORE THEY'RE MADE ORGANIZATIONAL KNOWLEDGE.

SO WE JUST ARE SENSITIVE STUFF.

WE TALK ABOUT WE MAKE ATTENDANCE A PRIORITY, WE ARRIVE ON TIME AND WE'RE PRESENT AND WE ALLOW CONVERSATIONS TO BE INCLUSIVE AND PROVIDE TIME FOR ALL MEMBERS TO PARTICIPATE. AND WE USE CONSENSUS FOR DECISION.

MOVING ON OUT OF THE CHARTER AND ONTO KIND OF OUR OVERALL BUDGET PROCESS.

THE DIAGRAM YOU SEE BEFORE YOU JUST IS A REALLY HIGH LEVEL CHART OF WHAT WE DO.

SO THE VERY FIRST LITTLE ORANGE SQUARE YOU SEE OVER THERE IS TODAY RETREAT.

SO WE KICK OFF WITH A HIGH LEVEL BUDGET INTRODUCTION AND THEN KIND OF AT THE SAME TIME THIS IS GOING ON, ALL THE DIVISIONS ARE BACK WORKING DILIGENTLY TO BE PUTTING IN THEIR NEW BUDGET REQUESTS, THEIR NEEDS, PREPARING THEIR PERSONNEL REQUESTS.

ALL THAT'S HAPPENING.

WE'RE COMPILING THAT INFORMATION RIGHT NOW.

THEN IN TWO WEEKS, LIKE I MENTIONED, WE'RE GOING TO BE BACK HERE FOR THE FEBRUARY BUDGET RETREAT.

THAT RETREAT WILL START INTRODUCING WE'RE GOING TO TALK ABOUT VERY HIGH LEVEL REVENUE TODAY.

WE'LL START TALKING ABOUT MORE REVENUE INFORMATION THAT WE ARE WORKING ON RIGHT NOW.

WE'LL TALK ABOUT SOME OF THE FIXED COSTS THAT WE KNOW.

WE DO HAVE SOME INFORMATION ON OUR INCREASES TO PENSION RATES, HEALTH BENEFITS, SOME OF THOSE THINGS.

AS WE ARE STARTING TO GET MORE INFORMATION, WE'LL START TO THAT.

THEN RIGHT AFTER THAT, WE HAVE ALL THE NEW REQUESTS GOING INTO OUR BUDGET SYSTEM AND THE BUDGET TEAM WILL START REVIEWING THOSE.

THAT'S THE THREE WEEKS I SAID THAT WE SIT AND TALK.

WE LOOK AT EVERY REQUEST THAT THE ENTIRE CITY IS PUTTING IN AND EVALUATE WHETHER WE CAN FUND IT.

IF IT'S HIGH PRIORITY, LOW PRIORITY.

LOOKING AT THAT AGAINST THE PRIORITIES AND OBJECTIVES.

AND THEN WE COME BACK.

WE HAVE A TWO DAY RETREAT IN APRIL WHERE WE TALK ABOUT THE CITY MANAGER'S RECOMMENDED BUDGET.

AFTER THAT MAKE GO BACK, MAKE ANY CHANGES IF NEEDED OR MODIFICATIONS.

AND THEN WE START THE APPROVAL PROCESS.

WE GO TO THE PUBLIC HEARING FOR THE PROPERTY TAX LEVEL ADOPTION AS NEEDED.

IF WE'RE GOING TO DO ANY PROPERTY TAXES, WE DO AN ADOPTION OF THE TENTATIVE BUDGET, THE FINAL ADOPTION OF THE BUDGET.

PROPERTY TAX LEVY ADOPTION.

AND THEN WE IMPLEMENT ON JULY 1ST OUR NEW BUDGET.

IT'S JUST SOME IMPORTANT TIMELINE.

BUDGET TIMELINE ITEMS FOR COUNCIL.

STARTING TODAY, WE'RE IN OUR RETREAT.

FEBRUARY 2ND AND 3RD IS OUR NEXT COUNCIL BUDGET RETREAT.

AND THEN APRIL 27TH AND 28 IS WHERE CITY MANAGER WILL BE BRINGING BACK THE RECOMMENDED BUDGET TO THE COUNCIL.

JUNE 6TH IS WHERE MORE SCHEDULED FOR THE TENTATIVE BUDGET ADOPTION.

THE 20TH OF JUNE IS WHERE WE HAVE THE PROPERTY TAX LEVY HEARING, FIRST READING OF THE PROPERTY TAX, ADOPTION AND FINAL ADOPTION.

AND THEN FINALLY ON JULY 3RD, THE FINAL READING OF THE PROPERTY TAX.

[00:15:06]

ANY QUESTIONS ON ANY OF THAT? IF NOT, I'M GOING TO HAND IT OVER TO BRANDI.

SHE'S GOING TO COME TALK ABOUT FISCAL POLICIES.

I DO HAVE A QUESTION, NOT NECESSARILY ABOUT THAT, BUT I DON'T SEE THE BUDGET RETREAT ON OUR AGENDA ON OUR CALENDARS.

WHICH ONE OKAY. WHAT'S THE DATE? FEBRUARY 2ND AND 3RD.

OKAY. THANK YOU.

YOU'RE WELCOME. WE'LL MAKE SURE YOU GET THAT ON YOUR CALENDAR.

ALL RIGHT. THANK YOU.

THANKS FOR COMING. YES.

YEAH, THAT'S THE APRIL RETREAT.

WE'LL CERTAINLY WORK TO GET ALL THAT INFORMATION AS IT HAPPENS.

YOU JUST MISSED IT.

[INAUDIBLE] GOOD MORNING, MAYOR, VICE MAYOR AND COUNCIL BRANDI SUDA, SERVING AS YOUR CITY'S FINANCE DIRECTOR.

SO I'M GOING TO REVIEW WITH YOU THE CITY'S KEY GUIDING FISCAL POLICIES.

AND THEN WE'RE GOING TO HAVE A SHORT PRESENTATION ON COLOR OF MONEY AS IT'S A HUGE COMPONENT OF HOW WE BUDGET AS A CITY.

SO FISCAL POLICIES.

SO THE CITY BUDGET IS NOT SIMPLY AN EXERCISE OF BALANCING REVENUES AND EXPENDITURES ONE YEAR AT A TIME.

IT IS STRATEGIC IN NATURE.

IT ENCOMPASSES MULTI YEARS OF PLANNING AND OPERATING PLANS TO ALLOCATE RESOURCES DIFFICULTIES].

SO THESE BONDS ARE USED TO ACCOUNT FOR REVENUES DERIVED FROM SPECIFIC TAXES OR OTHER EARMARKED REVENUE SOURCES AND ARE USUALLY REQUIRED BY STATE STATUTE, CHARTER PROVISIONS OR OTHER ORDINANCE TO FUND A PARTICULAR FUNCTION OR ACTIVITY WITHIN THE CITY.

[INAUDIBLE] MAKES MORE SENSE.

THANK YOU, STACY. SO HERE ARE A LIST OF ALL OF OUR SPECIAL REVENUE FUNDS WE HAVE AT THE CITY.

SO WE HAVE OUR HOUSING AND COMMUNITY SERVICES FUNDS.

THIS IS WHERE OUR CDBG OUR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS ARE, AS WELL AS OTHER SOURCES WE GET IN RELATED TO HOUSING.

WE HAVE OUR LIBRARY FUND.

SO THIS OUR LIBRARY SERVICES IS FUNDED WITH A SECONDARY PROPERTY TAX FROM THE COUNTY, AS WELL AS A GENERAL FUND TRANSFER FROM THE CITY FOR A PORTION OF THE CITY SERVICES RELATED TO THE LIBRARY.

WE HAVE OUR HIGHWAY USER REVENUE FUND OR OFTEN REFERRED TO AS HURF, AND THIS IS OUR GASOLINE TAX.

SO THIS IS HOW OUR STREETS OPERATIONS IS FUNDED FOR THE CITY.

IF TRANSPORTATION TAX THIS IS THE 1.281 TAX AND WE ACTUALLY HAVE THIS FUND IS BROKEN ACTUALLY INTO FOUR ADDITIONAL FUNDS.

[00:20:06]

SO WE HAVE OUR OUR TRANSIT FUND, WE HAVE OUR ROAD STREET SAFETY, THE LONE TREE OUR ROUTE 66 OVERPASS, AS WELL AS OUR TRANSPORTATION IMPROVEMENTS. SO WE TRACK ALL OF THOSE SEPARATELY.

YES. ARE ALL OF THOSE TAXES, I KNOW THAT ONE [INAUDIBLE] WAS THAT ARE LISTED THERE VOTED IN BY THE BOARD.

YES, THAT IS CORRECT.

SO THEY ALL HAVE VARIOUS EXPIRATION DATES, BUT THEY'RE ALL TRACKED UNDER THAT TRANSPORTATION TAX.

DO YOU KNOW WHAT PERCENTAGE OF THE HURF FUNDS GO TO OR HOW MUCH OF OUR STREETS ARE FUNDED THROUGH HURF FUNDS? SO ALL OF OUR STREETS OPERATIONS ARE FUNDED WITHIN THE HURF FUND AND THAT HASN'T GONE THAT HASN'T BEEN INCREASED IN DUE. I WILL HAVE TO LOOK TO SEE WHEN'S THE LAST TIME THE STATE INCREASED THAT TAX.

BUT IT IS A VERY VOLATILE REVENUE SOURCE.

RIGHT. AS GASOLINE TAX.

AS CARS BECOME MORE EFFICIENT, THEY USE LESS TAXES.

AND IT IS MY UNDERSTANDING IT IS A PERCENT.

I DON'T KNOW WHAT THAT PERCENT PERCENT IS OF THE TAX.

FIRST ALL, I THOUGHT IT WAS A PER GALLON.

YES, YOU'RE RIGHT. I'M SORRY.

YOU ARE. IT'S A PER GALLON.

IT'S AN AMOUNT PER GALLON.

YES. AND THE SECOND THING IS, IT'S BEEN I DON'T KNOW EXACTLY IT'S BEEN OVER 25 YEARS SINCE THIS INCREASE.

SO, IN FACT, IT'S DECREASED BECAUSE OF INFLATION.

AND MORE. YEAH.

ELECTRIC. YES.

YES. SO IT IS ONE OF THE CHALLENGES.

SO AS WE MOVE INTO MORE ELECTRIC CARS, ARE THERE ANY PLANS OUT THERE FOR THE STATE TO FIGURE OUT HOW WE MIGHT TAX THAT OR IS THAT GOING TO BE POSSIBLE OR YOU DON'T KNOW? I KNOW THERE HAS BEEN SOME DISCUSSIONS ABOUT A DIFFERENT TAX MAYBE ON ELECTRIC VEHICLES.

I DON'T KNOW. RICK TADDER PROBABLY HAS MORE HAS MORE KNOWLEDGE OF THAT.

I HAVE NOT HEARD ANYTHING THAT HAS PASSED YET RELATED TO THAT.

AGAIN, I'M GOING TO GRANT.

BRING THE RICK TADDER.

YEAH. SEEMS LIKE FREQUENTLY THROUGH THE LEGISLATIVE SESSIONS, WE DO HEAR THEM TALKING ABOUT A NEW WAY OF FUNDING STREETS OPERATIONS.

AT ONE POINT THEY TALKED ABOUT A MOTOR VEHICLE TAX OR REGISTRATION TAX THAT WOULD BE ADDED TO VEHICLES.

BUT THEY KIND OF FIZZLE OUT THROUGH THE END OF THE LEGISLATIVE PROCESS.

THEY REALLY HAVEN'T MADE MANY CHANGES, BUT THAT POPS UP OCCASIONALLY.

THEY'VE TALKED ABOUT INCREASING THE RATE ALSO.

BUT AGAIN, THEY KIND OF FALL NEAR THE END OF SESSIONS.

BUT WE'LL KEEP AN EYE ON IT.

THAT'S THE QUESTION. HOW DO WE PAY OUR REGISTRATION FOR OUR LICENSE PLATES? WHERE DOES THAT MONEY GO? SOME OF THAT GO INTO HURF? THE VEHICLE LICENSE TAX, GOES INTO THE GENERAL FUND AND NOT RESTRICTED FOR STREETS.

THANK YOU. MR. KNOW THIS YOU KNOW AT ALL YEARS.

HE'S RICK TADDER. HE'S A RICK TADDER.

THAT'S. SOME OF OUR OTHER SPECIAL REVENUE CLIENTS INCLUDE OUR BDB OR THE FOOD AND BEVERAGE TAX AT 2%.

SO AGAIN, THIS IS ANOTHER FUND THAT IS BROKEN OUT INTO FIVE SEPARATE FUNDS.

BEAUTIFICATION GETS 20%.

ECONOMIC DEVELOPMENT GETS NINE AND ONE HALF PERCENT.

TOURISM GETS 30%.

ARTS AND SCIENCE GETS SEVEN AND ONE HALF PERCENT.

AND RECREATION GETS 33% OF TAX.

WE HAVE PARKS [INAUDIBLE] OH..

CAN YOU REMIND ME WHEN THAT'S UP FOR DISCUSSION AGAIN, IT'S COMING UP, RIGHT? IT IS COMING UP. SO WE JUST ACTUALLY JUST LOOKED THIS UP, SO AND IT EXPIRES MARCH OF 2028.

SO I BELIEVE WE'LL BE TALKING ABOUT THAT IN 2024 AS A POSSIBLE ELECTION.

WE HAVE PARKFLAG.

SO THIS IS OUR DOWNTOWN PARKING DISTRICT.

SO FEES RELATED TO PERMITS AND PAY TO PARK FUNDS ARE OPERATIONS OF PARKFLAG.

WE HAVE OUR WATER RESOURCE AND INFRASTRUCTURE PROTECTION FEE THAT IS ON OUR MUNICIPAL BILL.

AND SO THIS IS A FEE THAT FUNDS THAT OPERATIONS.

DOES AIRBNB, DID THEY PAY THIS BBB TAX? SO, AIRBNBS. YES, THEY DO.

SORRY. THANK YOU. DON'T ASK ANOTHER QUESTION.

[00:25:02]

PLEASE GO THE PARK FLAG.

DOES IT ONLY FUND THE OPERATION FOR THE STAFF AND CARS AND ALL OF THAT STUFF SO IT DOESN'T FIND ANYTHING ELSE EXCEPT THAT.

IS THAT CORRECT? THAT IS CORRECT.

IT FUNDS A SMALL ALL OF OUR FUNDS IF WE'RE ALLOWED TO PAY A COST ALLOCATION, WHICH IS LIKE AN INDIRECT COST FOR SUPPORT SERVICES.

SO EVERYBODY BASED ON A COST ALLOCATION STUDY THAT WE DO ANNUALLY, THEY HELP PAY FOR FINANCE, LEGAL, THE CITY MANAGER'S OFFICE, PURCHASING, THAT KIND OF STUFF.

SO THERE IS A SMALL RELATED TAB, BUT REALLY IT ONLY FUNDS THINGS RELATED TO PARKING.

SO CAN I JUST FOLLOW UP? SO SAY FOR EXAMPLE, PARKFLAG HAS AN AMAZING YEAR.

I MEAN, EVERYBODY IS GOING DOWNTOWN AND PARKING BUYING STUFF AND THEY HAVE ALL THIS MONEY LEFT.

WHAT WHAT WOULD HAPPEN TO THAT? IT STAYS WITHIN THAT FUND AND GROWS INTO FUND BALANCE.

SO IF THEY EITHER SPEND LESS OR EXCEED THEIR REVENUE EXPECTATIONS IN THAT FUND, IT ROLLS INTO THE NEXT YEAR.

SO THEN THEY CAN REALLOCATE IT TO OTHER ITEMS OR WHAT THE PRIORITY IS FOR THAT STILL STAYS THERE.

PARKFLAG DOES HAVE THEY CALL IT THE LOCKBOX.

SO 20% OF THIS REVENUE IS ALREADY ADDITIONALLY RESTRICTED FOR THE PURCHASE OF ADDITIONAL PARKING IN THE DOWNTOWN AREA.

THESE ADDITIONAL PARKING SPACES LIKE.

YEAH, WHETHER IT'S WHETHER IT'S A SURFACE OR A GARAGE.

YEAH. SO 20% OF THOSE REVENUES ARE GOING INTO THAT.

SO EACH YEAR THEY WOULD USE THAT TO BUY PROPERTY TO BUILD THAT STUFF OR BUILD STUFF.

YES, THEY COULD. CORRECT. AND JUST TO PIGGYBACK ON THAT, WASN'T WHEN WE STARTED CHARGING FOR PARKING DOWNTOWN, WASN'T IT PROPOSED THAT IT WAS GOING TO EVENTUALLY PAY FOR A PARKING STRUCTURE? YES. AND WE'RE SAYING THAT THE 20% RESTRICTED THAT FUND IS BUILDING UP TO DO THAT.

YES, ABSOLUTELY.

IT'S DOING QUITE WELL.

SO. SO EVEN WITHIN PARKFLAG, WE HAVE TWO RESTRICTIONS, RIGHT? THEY HAVE THEIR OPERATIONS AS WELL AS THE LOCK BOX FOR FUTURE PARKING.

BUT SOME OF THAT MONEY GO TOWARDS THE NEW PARKING THAT WE NOW HAVE EMPTY.

SURE. THE OLD CHURCH SCHOOL.

SENIOR LIVING PLACE.

NO, NO, NO, NO.

AND WE COULD HAVE A DISCUSSION ABOUT THAT INDEPENDENTLY THERE.

THE FINANCE TEAM.

AND WE CAME UP WITH SOME GOOD SOLUTIONS TO FUND THAT.

SO THEY ARE I DON'T WANT TO SAY IT'S FULLY APPROPRIATED, BUT WE HAVE A PLAN.

SO, SO FAR, THE LOCKBOX IS JUST GROWING.

AT SOME POINT, WE'LL USE IT.

YES. CORRECT.

THANK YOU. YEAH. SO THOSE ARE OUR SPECIAL REVENUE FUNDS.

WE ALSO HAVE OUR ENTERPRISE FUNDS.

SO THESE ARE FUNDS THAT ARE SELF-SUPPORTING THROUGH USER FEES.

USUALLY IT'S A USER FEE ORDINANCE THAT RESTRICTS THE USE AND DICTATES THE AMOUNT CHARGED FOR WATER WASTEWATER, TRASH CHARGES, AS WELL AS IT CAN BE RENT OR AIRPORT LEASES AND FEES.

SO SOME OF THESE FUNDS INCLUDE OUR WATER FUND TO TRACK WATER, SPECIFICALLY WASTEWATER, RECLAIM WATER AND STORM WATER.

SO THAT'S ALL WITHIN WATER SERVICES.

BUT WE HAVE A FUND FOR EACH OF THOSE THAT TRACKS THE SPECIFIC REVENUE RELATED.

AND THEIR FEES ARE OUR WASTE.

OUR SOLID WASTE FUND.

SO THIS IS OUR COLLECTIONS AND LANDFILL SERVICES THAT WE PROVIDE.

WE HAVE OUR SUSTAINABILITY AND ENVIRONMENTAL MANAGEMENT FUND, OUR AIRPORT FOR ALL THE REVENUES THAT WE RECEIVE FROM THE AIRPORT RELATED TO LANDING, CAR RENTAL LEASES, ETC.. AND THEN OUR FLAGSTAFF HOUSING AUTHORITY IS ALSO AN ENTERPRISE FUND.

SO I UNDERSTAND YOU HAVE AN ENTERPRISE FUND THAT I THINK GOES INTO IT OR OUT OF IT, WHICH ITSELF SUPPORTS ITSELF.

HOWEVER, CORRECT ME IF I'M WRONG.

THE AIRPORT IS AN EXCEPTION TO THAT.

WE TAKE GENERAL CREDIT TO THE AIRPORT.

WE USED TO. YEAH.

WE ARE WORKING REALLY HARD AND WE HAVEN'T HAD TO IN A WHILE FOR OPERATIONS RELATED TO THE AIRPORT.

BUT WE ARE WORKING REALLY HARD TO MAKE IT SELF-SUFFICIENT.

BUT YOU ARE CORRECT. ALL OF THESE FUNDS, THE INTENT OF THOSE FUNDS AS AN ENTERPRISE FUND IS THAT THEIR USER FEES SUPPORT 100% OF THEIR OPERATIONS.

SO WE'RE TRANSITIONING OUT AIRPORTS.

YES. YES. AND IT'S A VERY GOOD QUESTION.

AND STAY TUNED.

YOU WILL BE SEEING UPDATES AND EVENTUALLY IMPLEMENTATION OF PAY PARKING AT THE AIRPORT.

JUST ONE OF A FEW REVENUE STREAMS. THE EVENTUAL REVENUES UNDER 31.45 ACRE PARCEL BEING ANOTHER.

[00:30:06]

SO THERE'S A REALLY GOOD PLAN IN PLACE TO SEE THE AIRPORT FUNCTION AS AN ENTERPRISE THROUGH TIME.

BUT AS BRADY NOTED, IT'S BEEN A BIT OF A JOURNEY TO GET THERE.

WHICH BRINGS TO ME TO ONE OTHER COMMENT.

THE ENTERPRISE STATUS WITH OUR TYPICALLY UTILITIES THAT IT'S ASSOCIATED WITH STORM WATER, SOLID WASTE AIRPORT IS QUITE POSSIBLE TO GO IN AND OUT OF ENTERPRISE STATUS FROM ONE YEAR TO THE NEXT AS VARIOUS PROJECTS OCCUR.

SOMETIME DOWN THE ROAD WE'LL BE BUILDING A NEW WASTEWATER TREATMENT PLANT.

ALMOST CERTAINLY THERE'S GOING TO BE OUTSIDE FUNDING, SIGNIFICANT FUNDING TO CAPITALIZE THAT IT WILL NOT BE SHOULDERED UPON GREAT REVENUES AND OTHER THINGS. IT'S JUST AN ILLUSTRATION THAT FROM TIME TO TIME WE GO OUT OF ENTERPRISE STATUS AND LOOK TO OTHER THINGS, ESPECIALLY WHEN THERE'S SIGNIFICANT CAPITAL BUILDING AT HAND.

I THINK A GREAT EXAMPLE IS THE B2B, RIGHT FOR CLARIFICATION? YEAH. YEAH. I THINK IT WAS OUR NEW BOND PROJECTS, RIGHT? THAT JUST GOT INFRASTRUCTURE RELATED TO WASTEWATER.

SO JUST TO CLARIFY, LIKE FOR WATER, THE CAPITAL IMPROVEMENTS THAT WE ARE FACING.

SO THERE'S A POSSIBILITY THAT WE COULD GO FOR GENERAL FUNDS, NOT LIKELY GENERAL FUND, AND WE'LL BE TALKING MORE ABOUT THAT COUNCIL MEMBERS AND EXCELLENT QUESTION, BUT LIKELY FROM OTHER SOURCES.

WE'VE BEEN VERY CREATIVE AND I DON'T WANT TO STEAL OTHER'S THUNDER HERE.

THERE'S GOING TO BE A LOT OF DISCUSSION ABOUT HOW WE HAVE FINANCED THINGS OVER TIME.

THE GENERAL FUND IS HEALTHY BUT IS PROBABLY NOT GOING TO FIX A LOT OF THE THINGS WE'RE TALKING ABOUT OR ADDRESS THEM.

I'M WONDERING IF IT'S A GOOD OPPORTUNITY.

BUT THE QUESTION IS ABOUT GENERAL FUNDING.

WE TALK A LITTLE BIT ABOUT HOW THE GENERAL FUND HAS TO SUPPLEMENT SUSTAINABILITY AND ENVIRONMENTAL MANAGEMENT DUE TO SOME OF THOSE LEGISLATIVE RESTRICTIONS.

THAT IS. THANK YOU, SHANNON.

THAT'S A REALLY GOOD POINT. WE DO TRANSFER MONEY IN FROM THE GENERAL FUND INTO SUSTAINABILITY ENVIRONMENTAL MANAGEMENT FOR SOME OF THOSE ITEMS THAT AREN'T ELIGIBLE TO BE PAID FOR WITH THE SUSTAINABILITY FEE.

THERE ARE CERTAIN PIECES.

I'M NOT THE EXPERT ON WHAT THOSE ARE RIGHT OFF THE TOP OF MY HEAD, BUT CERTAINLY WITH THE CARBON NEUTRALITY PLAN, WE HAVE TO EVALUATE EACH OF THOSE REQUESTS TO DETERMINE IF SUSTAINABILITY FUNDS CAN BE USED TO PAY FOR THOSE, BECAUSE THERE ARE A LOT OF STATE RESTRICTIONS ON HOW WE CAN SPEND THOSE USER FEES.

SO WE ALSO HAVE CAPITAL PROJECT FUNDS.

SO OUR CAPITAL PROJECT FUNDS ARE USED TO ACCOUNT FOR MAJOR CAPITAL ACQUISITION SEPARATE FROM OPERATIONS.

SO USUALLY THERE'S A RESTRICTED FUNDING SOURCE.

A LOT OF TIMES VOTER APPROVED GEO BONDS, GRANTS, OTHER BONDS OR OTHER THIRD PARTY RESTRICTED FUNDS.

WE HAVE OUR GENERAL OBLIGATION BOND PROJECTS FUND.

THIS IS WHERE WE HAVE RIGHT NOW.

WE HAVE OUR BOOKS AND OPEN SPACE.

BOND MONEY. WE HAVE A LITTLE BIT OF MONEY LEFT FROM THAT BOND.

THIS IS HOW WE FUNDED CORE SERVICES FACILITY FOR WATERSHED PROTECTION $10 MILLION DUAL BOND, AS WELL AS OUR NEW PROPOSITIONS FOUR FOR ONE AND 4.2 TO RELATED TO INFRASTRUCTURE.

AND USING THOSE WILL BE CAPITAL PROJECTS FUNDS SEPARATED FROM OPERATIONS.

WE ALSO HAVE OUR USGS CAMPUS EXTENSION.

SO WE HAVE AUTHORIZATION TO ISSUE DEBT.

SHOULD WE GET INTO AN AGREEMENT WITH GSA OR A BUILDING OR USGS.

OUR COURTHOUSE WAS ALSO FUNDED IN A CAPITAL PROJECT FUND, AS WELL AS THE DOWNTOWN MILE.

RELATED MANY TIMES, RELATED TO CAPITAL PROJECT FUNDS IS OUR DEBT SERVICE FUNDS.

SO THIS THESE FUNDS ARE USED TO ACCOUNT FOR THE ACCUMULATION OF RESOURCES TO THEN PAY THE DEBT SERVICE PAYMENTS ON OUR LONG TERM DEBT.

USUALLY THERE'S A RESTRICTED REVENUE SOURCE RELATED TO THEM.

WE HAVE CURRENTLY HAVE TWO DEBT SERVICE FUND FOR THE CITY.

WE HAVE OUR GENERAL OBLIGATION BOND FUND.

SO THIS IS FUNDED WITH OUR SECONDARY PROPERTY TAX AND PAYS THE DEBT SERVICE ON OUR THOSE BONDS AS PAYMENTS ARE DUE.

WE ALSO HAVE OUR PENSION BOND FUND.

SO THIS IS FAIRLY NEW OVER THE LAST COUPLE OF YEARS.

SO THIS PAYS THE DEBT SERVICE THAT WE ISSUED ON THOSE CERTIFICATES OF PARTICIPATION TO PAY DOWN OUR PSPRS UNFUNDED LIABILITY.

AND THIS FUND IS ACTUALLY FUNDED WITH A TRANSFER FROM THE GENERAL FUND, THE WATER RESOURCE INFRASTRUCTURE PROTECTION FUND, AS WELL AS THE AIRPORT.

[00:35:01]

SO THOSE ARE THE THREE FUNDS THAT HAVE POLICE AND FIRE PERSONNEL RELATED TO THEM.

SO THEY PAY A PROPORTIONATE SHARE.

LASTLY IS THE GENERAL FUND.

SO IF WE DON'T HAVE A WAY TO PAY FOR THOSE SERVICES IN ANY OF THOSE OTHER FUNDS, THAT ESSENTIALLY ACCOUNTS FOR EVERYTHING ELSE.

SO ANY UNRESTRICTED REVENUE.

SO THIS IS OUR 1% SALES TAX.

MANY OF OUR STATE SHARED INCOME TAXES, OUR PRIMARY PROPERTY TAX, AS WELL AS EXPENDITURES JUST TO FINANCE TRADITIONAL SERVICES ASSOCIATED WITH THE MUNICIPAL GOVERNMENT THAT ARE NOT ACCOUNTED FOR IN ANY OTHER FUND.

SO IN OTHER WORDS, EVERYTHING ELSE.

SO WHAT'S FUNDED IN THERE IS POLICE, FIRE, FINANCE, THE CITY MANAGER'S OFFICE, COMMUNITY DEVELOPMENT, I.T.

WE ARE ALL FUNDED WITHIN AND IN THE GENERAL FUND.

AND MANY OTHERS.

PARKS AND REC PARKS.

SO SOME OF THOSE KEY REVENUES THAT COME FROM THAT ARE IN THE GENERAL FUND.

AGAIN, OUR 1% CITY SALES TAX, OUR FRANCHISE TAXES, OUR PRIMARY PROPERTY TAX, STATE SHARED REVENUES, INCLUDING OUR SALES INCOME AND VEHICLE LICENSE TAX, OUR LICENSES AND PERMITS OR BUILDING PERMITS, FINES AND FORFEITURES RELATED TO COURT AND USER FEES RELATED TO THOSE FUNDS THAT ARE IN THE GENERAL FUND, SUCH AS COMMUNITY DEVELOPMENT, RECREATION, POLICE, FIRE AND CEMETERY.

SO THERE ARE A LOT OF DEMANDS ON THE GENERAL FUND.

AND AS YOU WILL SEE, WE SPEND A LOT OF TIME TALKING ABOUT THE GENERAL FUND BECAUSE THAT'S WHERE A LARGE PORTION OF OUR BUDGET AS WELL AS USUALLY HAS THE MOST DEMANDS ON THAT FRONT.

WITH THE PASSING OF THE FLAT TAX, 8.8, WHATEVER IT IS, A PROJECTION OF THAT REVENUE, STATE SHARED REVENUE GOING UP OR DOWN OR WE DO HAVE A PROJECTION ON THAT.

AND I THINK RICK'S GOING TO TALK ABOUT THAT IN HIS SLIDES RELATED TO REVENUE.

SO I'LL SAY THAT.

ANY QUESTIONS ABOUT COLOR OF MONEY OR FUND ACCOUNTING? IT'S KIND OF LIKE WE HAVE LITTLE SEPARATE CHECKING ACCOUNTS FOR ALL OF OUR DIFFERENT FUNDS.

WE DON'T DO IT QUITE LIKE THAT, BUT THAT'S KIND OF UP A TON OF DIFFERENT BUSINESSES THAT WE OPERATE AND WE TRACK ALL OF THOSE REVENUES AND EXPENDITURES.

SO THANK YOU. LET'S GET RANDY AND GET A GOOD START.

AND THEN, OF COURSE, A ROUND OF APPLAUSE FOR THE ONGOING RICK TADDER.

THIS IS WHAT THIS WILL LOOK LIKE.

YOU'RE GOING TO SAY ON TIME, HUH? MINUS A LITTLE PAST THE LAST FEW MINUTES.

OKAY. [INAUDIBLE] ANY QUESTIONS? OF THIS SECTION, WE'RE GOING TO TALK ABOUT MAINTAINING PHYSICAL HEALTH.

WE'RE REALLY PROUD OF OUR ORGANIZATION, THE EFFORTS WE MAKE TO MAKE SURE THAT WE HAVE THE ONGOING RESOURCE TO MEET THE NEEDS OF OUR COMMUNITY AND PLAN VERY WELL AND BE FISCALLY STRONG IN OUR COMMUNITY.

AND SO WE'RE GOING TO TALK ABOUT RECESSION PLANNING, FISCAL RESPONSIBILITY AND FUND BALANCE.

RESERVES ARE THE MAIN THINGS THAT WE TALK ABOUT WHEN WE'RE TALKING ABOUT FISCAL HEALTH OVER OUR CITY OF FLAGSTAFF.

SO WE'RE GOING TO TALK ABOUT RECESSION PLANNING FIRST.

THIS IS SOMETHING THAT THE BUDGET TEAM TOOK A LOT OF EFFORT ON.

WE STARTED IN THE FALL OF 2019.

WE SAW REVENUES DECLINING IN OUR GENERAL FUND, OUR SALES TAX.

AND THE CITY MANAGER BROUGHT FORWARD.

A PROTOTYPE FROM FROM A CITY HE WORKED WITH FOR US TO DEVELOP OUR OWN THAT FITS THE CITY OF FLAGSTAFF AND BUDGET TEAM TOOK THAT TASK AND STARTED WORKING ON IT OVER FROM THAT FALL TO EVENTUALLY ADOPTING IT IN MARCH 2020.

WHAT HAPPENED IN MARCH 2020? WE WERE VERY TIMELY AND ACTUALLY GETTING THAT UP IN FRONT OF COUNCIL FOR SOME TYPE OF ADOPTION.

SO TIMING WAS GREAT AND WE REALLY USE THAT PLAN DURING THE COVID PANDEMIC AS WE WERE WATCHING OUR RESOURCES.

SO WE ADOPTED IN MARCH.

AND SO SHORTLY AFTER THAT WE WENT INTO RECESSION PLANNING AND ACTUAL MEASURES RELATED TO THAT PLAN.

I'M JUST GOING TO TALK ABOUT HIGH LEVEL WITH THAT RECESSION PLAN TODAY.

WE DO HAVE A COPY OF IT.

WE FORGOT TO INCLUDE IT IN THE PACKET.

BUT IF YOU WANT TO TAKE ONE AND PASS IT AROUND, WE'RE NOT GOING TO QUIZ YOU ON IT TODAY.

BUT THIS IS OUR CURRENT RECESSION PLAN WE HAVE.

SO THE PLAN WE'LL TALK ABOUT THE PURPOSE OF PLANNING FOR RECESSION IN THAT DOCUMENT, UNDERSTANDING WHAT THE INDICATORS ARE THAT YOU MAY WANT TO WATCH FOR

[00:40:07]

AND GAIN PERSPECTIVE OF WHEN WE MAY GO INTO RECESSION.

UNDERSTANDING THAT DIFFERENT FUNDS HAVE DIFFERENT IMPACTS THAT THEY MAY SEE IN CERTAIN PERIODS.

OUR RESERVES ARE FUND BALANCES ARE VERY IMPORTANT TO WATCH AND THE RECESSION PLAN IS NOT SOMETHING THAT IS NECESSARILY PART OF BUDGET.

IT'S SOMETHING THAT OVERLAYS ON TOP OF BUDGET.

WE DO OUR PROJECTS AND WE DO OUR BEST TO PLAN WHERE WE'LL BE WITH OUR RESOURCES.

BUT IF THERE'S BUMPS IN THOSE REVENUES COMING IN, THEN WE START PUTTING A LAYER ON TOP OF THAT AND LOOKING AT THE REST OF THAT PLAN TO GUIDE US THROUGH THOSE MONTHS OR YEARS. UM, IT'S VERY ADAPTABLE IN HOW WE IMPLEMENT.

THIS IS SOMETHING THAT WE'VE WORKED AS BUDGET TEAM.

WE DON'T WANT TO BE OVER RESTRICTIVE, BUT WE WANT TO HAVE SOME KIND OF MEASURES AND HAVE OUR STAFF AND UNDERSTAND WHERE WE MAY BE GOING WHEN WE HAVE LOSSES IN REVENUES IN THE FUTURE.

A KEY COMPONENT IS THAT IF WE MOVE TO A SIGNIFICANT STAGE AND THAT STAGE IS THE 5% REVENUE LOSS UP TO 10% LEVEL.

AND THEN WE HAVE STAGES ABOVE THAT.

WE'RE GOING TO COME TO YOU AS COUNCIL AND ASK FOR COUNCIL ACTION TO MOVE FORWARD IN THE RECESSION PLAN.

SO WE HAVE A CHECK IN WITH COUNSEL TO MAKE YOU AWARE WE'RE SEEING THESE IMPACTS AND HAVE YOU APPROVE GOING TO THE NEXT MEASURES WITHIN THAT RESEARCH PLAN.

WE'LL TALK A LITTLE BIT ABOUT THOSE IN THE COMING SLIDE.

SO THE RECESSION PLAN IS PRIMARILY FOCUS ON MANAGING YOUR YOUR EXPENDITURE SIDE, RIGHT.

WE KNOW WHERE THE REVENUE IS GOING.

WE START PROJECTING THAT. SO WE'VE GOT TO TALK ABOUT THE EXPENDITURE SIDE.

WHAT ARE WE GOING TO DO? WHAT ARE WE GOING TO SPEND? SO THAT'S WHERE WE START TO TAKE OUR FOCUS MORE ON THE OPERATIONS SIDE VERSUS THE CAPITAL SIDE.

SO CAPITAL IS YOUR PROJECTS AND EQUIPMENT AND THAT'S THAT KIND OF ITEMS WHICH ARE A LITTLE MORE ADAPTABLE DURING A PANDEMIC, BUT IT'S YOUR OPERATING EXPENSE THAT YOU WANT TO MANAGE.

WE WANT TO DO THIS WHILE MAINTAINING THE RIGHT SERVICE LEVELS IN OUR ORGANIZATION.

SO IT'S NOT LIKE WE'RE GOING TO DROP POLICE AND FIRE OR REALLY SAFETY RELATED ISSUES.

WE'RE GOING TO STILL FOCUS THOSE EXPENDITURES DURING A RECESSION TO MAKE SURE WE'RE NOT MAKING A HARM TO OUR COMMUNITY.

WE WANT TO STAY FOCUSED ON THE HEALTH OF OUR COMMUNITY.

CIP PLANS, THEY HAVE AN OPPORTUNITY TO ADJUST THEIR PLAN AND TIMING OF THEIR CAPITAL PROJECTS OVER THE NEXT SEVERAL YEARS.

IF WE HAVE LESS REVENUES THAN WE NEED TO BUILD THINGS AND SOME PROJECTS MAY OUTRIGHT BE DEFERRED.

IF THE REVENUES ARE THAT BAD.

LIKE WE SAID, WE FOCUSED GENERALLY ON THE GENERAL FUND IS REALLY A BAROMETER.

WE TALKED ABOUT THAT YESTERDAY A LITTLE BIT, HOW THE GENERAL FUND ROLLS KIND OF THE REST THE ORGANIZATION KIND OF MOVES ALONG WITH.

AND AS A MEASURE, THE GENERAL FUND IS 22% OF OUR OPERATING BUDGET.

SO IT'S A BIG PROPORTION OF WHAT WE DO IN OUR COMMUNITY.

BUT WE WE DON'T WANT TO JUST CUT EVERYTHING.

WE ALSO WANT TO BE STRATEGICALLY THINKING ABOUT HOW DO WE GET OUT IN THE COMMUNITY AND BUILD REVENUES AND MOVE FORWARD DURING THESE TIMES.

AN EXAMPLE THAT WE USE VERY EFFECTIVELY WITH THE RECESSION IS INVEST MORE IN THE TOURISM DOLLARS, TALKING TO THE COMMUNITY, BRINGING PEOPLE IN, AMAZING OUTREACH THAT TEAM DID AT FLAGSTAFF TO KEEP THEM FROM STILL HAVING THE.

THE AWARENESS OF THE PANDEMIC AND THE RESPONSIBILITY.

BUT THAT EFFORT REALLY PAID OFF.

IT HELPS LESSEN THE IMPACTS OF THE TAXES OF CONSTRUCTION.

YOU MAY WANT TO KEEP CONSTRUCTION GOING IN YOUR COMMUNITY.

YOU MAY WANT TO KEEP THOSE PROJECTS MOVING SO PEOPLE ARE STILL MAKING INCOME AND BEING PART OF OUR COMMUNITY AND GROWING.

SO THOSE ARE SOME OF THE THINGS WE LOOK AT AS FAR AS THE BUDGET TEAM.

IT'S NOT ALL ABOUT CUTTING EXPENDITURES.

THE SLIDE IS A PERSPECTIVE OF THE STAGES THAT WE HAVE.

WE HAVE FIVE STAGES WITHIN OUR RECESSION PLAN THAT WE BUILT.

I CAN'T READ IT BACK THERE.

YOU KNOW, THE MINOR ALERT, IF WE'RE STARTING TO LOSE UP TO 2% IN REVENUES, IT'S NOT NOT A HARD ONE TO MANAGE.

BUT THERE'S SOME THINGS WE CAN DO.

JUST LET'S TALK ABOUT REASONABLE EXPENDITURES, MAYBE REDUCE AND MAYBE A LITTLE BIT OF TRADE OR WHAT HAVE YOU.

AND THEN WE MOVE THROUGH THE CATEGORIES HERE AS WE MOVE FROM A 2 TO 5%, 5 TO 10.

AND THEN IT GETS REALLY INTO MAJOR AND CRISIS MODE OF PERSPECTIVE.

THE GREAT RECESSION WAS ABOUT A 13% LOSS IN REVENUES IN OUR IN OUR SALES TAX.

[00:45:04]

SO WE'RE TALKING THAT'S A MAJOR CATEGORY.

WE'VE GOT TO MAKE SOME STRONG DECISIONS IN OUR ORGANIZATION.

BUT THAT'S WHY YOU SEE, WHEN WE GET THE SIGNIFICANT MAJOR CRISIS, WE NEED YOUR CONVERSATION.

WE'RE GOING TO COME TO COUNCIL.

WE'RE GOING HAVE THESE CONVERSATIONS.

THESE ARE SOME MEASURES THAT WE WANT TO TALK ABOUT.

WE HOPE WE DON'T GET THERE. BUT.

WE WILL WORK WITH YOU AND WE'LL WORK TOGETHER TO GET THROUGH THESE TYPES OF RECESSIONS.

I SAID FOR RECESSION.

I DON'T KNOW, GREG, IF YOU WANT TO ADD ANYTHING TO THAT.

WELL, THANKS FOR THAT QUESTION.

THANK YOU FOR A GREAT PRESENTATION.

I'LL GIVE A LITTLE MORE CONTEXT.

DON'T TAKE TOO MUCH. I WON'T.

AM I OKAY? DO I HAVE ANOTHER MINUTE? YES. CITY MANAGER.

YOU HAVE A MINUTE? BACK TO THE COMMENT ABOUT YOU.

HAD THE RECESSION PLAN BEEN IN PLACE DURING THE GREAT RECESSION, WE WOULD HAVE SEEN IT GO TO THE MAJOR STAGE, WHICH IS PRETTY DIRE RIGHT AT THAT POINT. WE ARE LOOKING POTENTIALLY AT A LOT OF THINGS, INCLUDING DRAWING DOWN ON RESERVES AND CUTTING BACK ON SALARIES AND POSSIBLY, POSSIBLY SERVICE CUTS AND REDUCTIONS IN OUR LABOR FORCE.

I WANT TO BRING YOU BACK TO THIS SLIDE WE SHOWED YESTERDAY ABOUT OUR EMPLOYMENT, THE BAR GRAPH THAT SHOWED THE NUMBER OF EMPLOYEES.

DO YOU REMEMBER THAT BIG DIP THAT OCCURRED IN 2009 AND TEN? THAT WAS SIGNIFICANT AND THAT WOULD BE AN ILLUSTRATION OF THIS.

OF COURSE, WE'RE COMING TO COUNCIL BEFORE THOSE KINDS OF MEASURES ARE TAKEN.

THE VERY BEGINNING PART OF THIS, THE FIRST TWO PHASES, WE CAN HANDLE THAT ADMINISTRATIVELY AND WE WOULD GIVE YOU UPDATES AS TO THAT.

BUT AS WE PROGRESS THROUGH THIS PLAN AND THINGS GET MORE AUSTERE AND WITH GREAT CONSEQUENCE ON THE TABLE IN TERMS OF THE ACTIONS WE TAKE, WE'RE MAKING THOSE DECISIONS COLLABORATIVELY, COLLABORATIVELY WITH THE COUNCIL.

IT'S IT RISES TO THAT LEVEL.

SO FORTUNATELY, WE HAVE NOT BEEN THERE SINCE THE GREAT RECESSION.

WE WENT TO THE SIGNIFICANT STAGE A COUPLE OF YEARS AGO DURING THE GLOBAL PANDEMIC.

NO REDUCTION IN WORKFORCE, OF COURSE, BECAUSE OF THE PANDEMIC.

WE LOST EMPLOYEES FOR ANOTHER REASON, THAT BEING WE HAD TO SHUTTER MANY OF OUR FACILITIES, BUT IT WAS NOT ECONOMICALLY BASED.

THAT WAS BASED UPON A GLOBAL PANDEMIC.

SO DIFFERENT CIRCUMSTANCES.

ANYWAY, THAT WOULD WOULD BE A GOOD ILLUSTRATION HOW THIS PLAN WOULD HAVE WORKED BACK IN 2009 AND TEN.

THANKS, RICK. I HAVE A QUESTION.

THIS IS ONE OF THOSE WAY OUT AND WHERE FOR WHAT IFS.

SO WE'VE ALL BEEN KIND OF LISTENING TO KIND.

TALKING ABOUT THE DEBT CEILING.

SO WHAT HAPPENS IF BY ANY REMOTE POSSIBILITY SOMEBODY GETS CRAZY AND THEY DON'T RAISE IT? I'M SERIOUS BECAUSE WE NEVER THOUGHT WE'D BE [INAUDIBLE] WE NEVER THOUGHT WE'D BE IN A PANDEMIC EITHER.

BUT THERE WE WERE.

SO I ALWAYS LIKE TO KIND OF PLAY THE WHAT IFS.

I DEFINITELY HAVE FAITH THAT THEY LET OUR COUNTRY SHUT DOWN AND GO THROUGH THAT.

I HAVEN'T REALLY LOOKED AT WHAT THE RESPECTS WOULD BE, BUT REALLY IT'S GOING TO BE THE LENDING FAITH OF OUR COUNTRY IS GOING TO BE WHAT THE MAJOR TRIGGER IS, BEING ABLE TO HAVE THE RIGHT INTEREST RATES AND SO FORTH.

THEY MAY THEY MAY GO SKYROCKET.

THAT MAY BE ONE OF THE MAJOR IMPACTS.

WE HAVE THE CREDIT ON OUR COMMUNITY, WHICH MEANS THEN IT THEN FALLS TO OUR LOCAL COMMUNITY FOR US TO ISSUE DEBT WILL ALSO BE IMPACTED.

A COUPLE OF PERCENTAGE INCREASE IN IN DEBT ISSUANCE IS A BIG ISSUE.

YOU CAN DO THAT. YOU'LL HAVE TO DO LESS IN ORDER TO DO THE SAME.

SO IT WOULD BE WORSE THAN THE RECESSION THAT WE HAVE.

I DON'T KNOW IF THAT WOULD BE THE MAIN CAUSE OF THE RECESSION.

IT MAY BE AN INDICATOR.

THERE'S A LOT OF THINGS THAT GO INTO A RECESSION.

AND WE'LL TALK MORE ABOUT THIS TOMORROW.

YES, SATURDAY, RICK, TALK ABOUT THE NEXT TWEET.

STAY TUNED. WHAT YOU DO IS YOU HAVE A SHOW AND I DON'T WANT TO GO INTO A WHOLE LONG OF THING ABOUT THAT.

BUT I'M JUST I MEAN, IS YOUR TEAM THINKING ABOUT THAT? DO Y'ALL THINK ABOUT THOSE KINDS OF THINGS EVEN THOUGH THEY'RE WAY OUT THERE? I HAVE NOT HEARD ANY OF THE ECONOMISTS.

[00:50:01]

THOSE ARE THE ONES I REALLY RELY ON AND LISTEN TO THEM.

I HAVEN'T HEARD ANY OF THEM THROW THE WARNING SIGNS OF A MAJOR RECESSION DUE TO CONGRESS INACTION.

WE'LL KEEP LISTENING TO THEM.

THAT'S WHERE I GET A LOT OF MY INFORMATION.

IT MAY BE SOMETHING FOR THE NEXT RETREAT.

I COULD MAYBE DO A LITTLE RESEARCH FOR THEM.

SO RELATED TO MS. HARRIS COMMENT. IT MAY BE THAT THE FEDERAL GOVERNMENT DOESN'T SHUT DOWN OR WHATEVER, BUT THEY MIGHT.

AND THIS IS, OF COURSE.

THEY MIGHT CUT BACK ON HOW MUCH MONEY THEY SEND TO STATES AND CITIES.

SO THAT COULD IMPACT OUR BUDGET.

SO I GUESS THE QUESTION IS HOW MUCH DO WE RELY ON MONEY FROM THE STATE FEDS AS OPPOSED TO RAISING THEIR OWN MONEY THROUGH SALES TAX, ETC..

I'LL LOOK AT MORE TO THAT.

THEY MAY NOT FUND, LIKE OUR COMMUNITY DEVELOPMENT BLOCK GRANT TO THE LEVEL THAT WE REALLY NEED RIGHT NOW.

THEY MAY START CUTTING BACK ON PROGRAMS IN THAT ASPECT, BUT SOME OF THOSE THINGS THAT ARE AUTHORIZED BY CONGRESS, I DON'T KNOW THAT IT'LL SLOW TOO MANY OF THOSE.

THEY'VE ALREADY BEEN AUTHORIZED.

AND THE OTHER POINT IS, BEFORE WE CAN GET TO THE RECESSION PLAN, WE DO HAVE RESERVES, WHICH.

THANK YOU. OH, NEXT ONE.

OH, YOU'RE GOING OFF A COUPLE OF SLIDES.

WE'VE GOT FISCAL RESPONSIBILITY FIRST.

OKAY. AND BRANDY SPOKE TO US A LITTLE BIT EARLIER IN HER PRESENTATION.

BUT WE'RE FISCALLY SMART COMMUNITY FINANCE TEAM ORGANIZATION.

WE MAKE SURE THAT ALL OF OUR FIVE YEAR PLANS ARE STRUCTURALLY BALANCED.

WE WANT TO MAKE SURE THAT THE ONGOING REVENUES MEET THE ONGOING NEEDS AND JUST USE THOSE ONE TIME INCREASE IN REVENUES TOWARD ONE TIME ITEMS, MAKING SURE WE CAN DELIVER IN THE LONG RANGE.

WE DO THIS THROUGH MAKING SURE OUR REVENUES ARE ACHIEVABLE AND SOMETHING WE CAN REACH.

THERE'S A LITTLE CONSERVATIVE SIDE TO WHEN WE ARE PROJECTING OUR REVENUES BECAUSE WE DON'T WANT TO BE IN A SPOT.

WE CAN'T KEEP DELIVERING SERVICES IN THE LONG RUN.

OF WE'VE RESERVED REVENUES FOR ONE TIME USE, ESPECIALLY THOSE CASH BALANCES.

SO YOU'LL SEE NOT TOMORROW BUT THIS AFTERNOON, A LITTLE BIT ABOUT HOW OUR FUNDS GENERAL FUND ENDED LAST FISCAL YEAR.

THOSE GAIN IN REVENUES BECOME ONE TIME REVENUES FOR THIS YEAR.

BUT THEN WE PROJECT OUT FOR HOW WE CAN USE THE ONGOING GROWTH.

OUR FUND BALANCE POLICIES SUCH AS OUR GENERAL FUND HAVE A 20% MINIMUM FUND BALANCE.

WE'LL TALK ABOUT THOSE IN THE COMING SLIDES.

WE BUILD RECESSIONS INTO OUR REVENUE PROJECTIONS.

SO YOU'LL SEE IN FEBRUARY WE'RE GOING TO GET INTO THE DETAILS IN FEBRUARY.

I'M NOT GOING TO HAVE A LOT OF DETAILS RIGHT NOW, BUT YOU'LL SEE THAT I AM PUTTING SOME TYPE OF RECESSION OUTLOOK FOR NEXT FISCAL YEAR.

THE TALK IS OUT THERE, BUT THEN WE KNOW THAT IT'S CYCLICAL.

EVERY SEVEN YEARS OR SO ON AVERAGE, WE SHOULD BE PLANNING FOR THESE DOWNTURNS.

SO OUR PLANS ALL HAVE THIS BUMP IN REVENUES OR REDUCTION OF REVENUES OVER TIME.

WE BUILD THOSE IN.

AND OF COURSE, THE ANNUAL BUDGET PROCESS IS A KEY TO BEING FISCALLY STABLE.

BY BEING FISCALLY RESPONSIBLE.

THIS IS JUST SOMETHING JUST TO SHARE AND MAKE IT TO THE HORN OF THIS ORGANIZATION IS THERE IS A FINANCIAL IMPACT.

THE BETTER YOU DO, THE BETTER YOU CAN ISSUE YOUR DEBT, LOWER INTEREST RATE SAVING TAX DOLLARS.

IN OUR COMMUNITY, THE CITY IS CONSISTENTLY, CONSISTENTLY RECEIVING A HIGH RATING ON OUR BOND MEASURES.

MOST RECENTLY, WE EVEN DID THE PENSION FINANCING IN THE SUMMER OF IT DURING A RECESSION, AND WE STILL RECEIVED AN A-MINUS FOR THOSE TYPES OF BONDS.

GENERAL OBLIGATION BONDS ARE YOUR BEST RATING AND GENERALLY OTHER TYPES OF BONDS, REVENUE BONDS AND SO FORTH ARE JUST ONE STEP LOWER IN THE ORGANIZATION.

SO IT WAS INCREDIBLE THAT WE GOT THAT RATING DURING THE ECONOMIC RECESSION AND THE COVID PANDEMIC.

OUR CURRENT RATING ON FUEL BONDS IS AN AA STABLE DURING THAT PROCESS, A WHILE BACK FOR STANDARDS BOARD AND DOUBLE A TWO FOR MOODY'S.

ALSO, OUR MOST RECENT ONE WE DID.

SO HERE YOU CAN SEE WE ARE UP IN THAT HIGH GRADE OF A DEBT.

SO WHEN WE GO OUT TO THE PUBLIC, OFFER OUR DEBT, THEY'RE FIGHTING BECAUSE THEY'RE TRYING TO BUY THE BONDS IN INCREMENTS THAT THEY

[00:55:04]

WANT TO INVEST IN.

THEY SEE US AS WE'RE GOING TO PAY OUR BILLS SO THEREFORE FAVORABLE ON OUR.

CITY. NOW WE'LL TALK ABOUT FUND RESERVE ON BALANCE RESERVES.

PAGE OFF HERE. ON BALANCE, RESERVES ARE REALLY IMPORTANT FOR ANY ORGANIZATION, FOR CITIES, STATES AND SO FORTH.

WE TRY TO FOLLOW OUR GOVERNMENT FINANCE OFFICERS ASSOCIATION AND GUIDELINES WHEN WE'RE TALKING ABOUT FUND BALANCES WITHIN THE CITY OF FLAGSTAFF, UNDERSTANDING WHAT ARE THE BEST PRACTICES FOR OUR RESERVES.

WE DON'T WANT TO BE OVER RESERVING FUNDS BECAUSE THERE'S THINGS WE CAN GET DONE, BUT WE DON'T WANT TO SET OURSELVES IN AN AREA THAT WE'RE TOO LOW ON OUR RESERVES.

THESE POLICIES ASSIST US WITH THOSE ECONOMIC RISKS THAT WE MAY SEE IN THE COMING YEARS.

IT'S NOT NECESSARILY AN EMERGENCY FUND TO SPEND.

IT'S JUST MANAGING YOUR REVENUES.

IF YOUR REVENUES DON'T MATCH, YOU'VE STILL GOT THE CASH RESERVE TO DELIVER SERVICES.

THE GUIDANCE PROVIDES US A WAY OF SETTING AN APPROPRIATE LEVEL USE OF OR REPLENISHMENT OF THE FUNDS IF YOU ACTUALLY HAVE TO BUILD IT TO GO INTO THOSE RESERVES, HOW DO YOU GET THEM BACK UP TO A LEVEL? AND THEN A COUPLE OF KEY NOTES.

UNBALANCES ARE A BALANCE SHEET ACCOUNT.

THERE'S SOMETHING THAT SITS IN YOUR YOUR LIABILITIES AND EQUITY, BUT IT'S NOT SOMETHING THAT'S CASH THAT'S AVAILABLE TO SPEND IN A TIME LIKE IN YOUR RECESSION.

IT'S NOT A BUDGETED ITEM.

IT'S REALLY A MATTER OF MANAGING.

IF REVENUES GO DOWN, YOUR CASH IS BEING USED IN YOUR IN YOUR BALANCE SHEETS, NOT A NEW EXPENDITURE TO BE MADE.

SO THEY'RE NOT AVAILABLE FOR SPENDING EACH FISCAL YEAR, BUT MAINLY THAT PLACEHOLDER FOR DECLINE IN REVENUES, WHICH IS A KEY, KEY THING TO UNDERSTAND. AND I'M GOING TO GO THROUGH THESE NEXT COUPLE SLIDES.

HIGH LEVEL, BUT SETTING THE APPROPRIATE LEVELS.

THERE ARE SEVERAL KEY COMPONENTS THAT GFOA PROVIDES US WHEN WE'RE TALKING ABOUT THESE TYPES OF POLICIES YOUR REVENUE, STABILITIES, YOUR EXPENDITURES, VOLATILITY.

YOU HAVE HIGH GAS PRICES.

WE'RE DEALING WITH A LITTLE BIT OF THAT RIGHT NOW.

HOW DO YOU MANAGE THROUGH THAT TIME? HOW DO YOU LEVERAGE YOUR FUNDING WITH GRANTS AND SO FORTH? EXTREME EVENTS. WE KNOW ABOUT THOSE.

WE'VE SEEN A FEW OF THOSE OVER THE LAST COUPLE OF YEARS.

CASH FLOW, RELIANCE ON FUNDS, YOUR GROWTH PROJECTIONS AND YOUR CAPITAL PROJECTS.

I'LL CALCULATE INTO WHAT YOUR POLICY SHOULD BE FOR THAT PERCENTAGE ON BALANCE RESERVE.

THEN ON THE OTHER SIDE, ONCE YOU GET INTO AN ECONOMIC RECESSION AND YOU START TO DEPLETE YOUR FUND BALANCES BECAUSE OF LOSS OF REVENUES, YOU THINK ABOUT HOW DO I GET BACK THERE? HOW DO WE GET BACK TO THAT LEVEL? BECAUSE THIS IS GOING TO BE CYCLICAL.

YOU GENERALLY USE THOSE ONE TIME REVENUES TO REPLENISH YOUR FUND BALANCE.

AND REALLY, YOU'RE LOOKING AT THIS FINANCIAL BREACH.

IT MAY NOT BE THE NEXT YEAR.

YOU GET PUNISHED AND MAYBE TWO YEARS, THREE YEARS DOWN THE LINE, YOU GET BACK UP TO AN ADEQUATE LEVEL.

HEY RICK, CAN YOU TALK ABOUT HOW OUR FUNDS HELPED US IN THAT REGARD? THE REPLENISHMENT. YEAH.

ARPA FUNDS IS A LITTLE INTERESTING WAY TO LOOK AT THINGS FOR THE CITY.

WE DEFINITELY LOST REVENUES AT THE CITY OF FLAGSTAFF, BUT WE WEREN'T.

WE ACTUALLY WERE PLANNING A REDUCTION IN REVENUES IN OUR PLANS AND OUR PLANS.

I'M GOING TO TALK ABOUT THIS A LITTLE BIT TOMORROW, ALSO, NOT TOMORROW.

SO I CAN SAY TOMORROW.

I USUALLY DO IT TOMORROW, BUT YOU'LL HAVE A SMALL AUDIENCE.

TOMORROW IS THE AFTERNOON.

IT WAS MORE OF A BOOST THAN GETTING US THROUGH THE TIME BECAUSE WE'VE MADE THOSE RECESSIONARY CHANGES IN OUR COMMUNITY THAT WE ARE RELYING ON THOSE 100% JUST TO PAY BACK OUR REVENUE LOSS.

SO WE WERE ABLE TO DEFINE THOSE ARPA FUNDS TO GET SPECIFIC TASKS DONE INSTEAD OF JUST REPLACE THE REVENUES AND PUT IT FUND BALANCE BECAUSE WE REALLY STRONG RECESSION PLANNING.

WE WERE READY TO WEATHER THAT STORM.

SO I THINK THAT ARPA FUNDS WERE MORE OF A BOOST, A BOOST TO OUR COMMUNITY TO DO MORE IN OUR COMMUNITY THAN IT WAS TO REPLACE FUND BALANCES.

[01:00:03]

ALL RIGHT. THANK YOU. YEAH.

JUST OFF THE CUFF.

NO, THAT'S GOOD. RESPONSIVE.

SO GENERALLY WE WANT TO DO A 1 TO 3 YEAR PERIOD.

YOU'VE GOT TO LOOK TO MAKE SURE.

YOUR RECESSION COULD BE MORE THAN ONE YEAR.

RIGHT. THE GREAT RECESSION WAS 18 MONTHS.

THAT WAS LIKE A TWO FISCAL YEAR PERIOD.

SO IT'S NOT LIKE YOU'RE GOING TO JUMP INTO IT AND GET IT BACK.

YOU'RE GOING HAVE TO WAIT TO SEE THAT THAT UPTURN.

AND THEN OVER 1 TO 3 YEARS, YOU WANT TO REPLENISH THAT AND GET THAT IN PLACE THROUGH THE BUDGET PROCESS.

WE PLAN TO GET THOSE THOSE FUNDS BACK.

AND THEN AS YOU SEE YOUR REVENUE GROWTH, YOU MAY NOT PUT ALL YOUR REVENUE GROWTH TOWARD NEW PROGRAMS AT THAT POINT.

PUT MONEY BACK INTO THE POT TO YOUR FUND BALANCE RESERVES.

SO AS FAR AS POLICIES THAT WE CURRENTLY HAVE WITHIN OUR FUNDS.

BRANDI TALKED ABOUT ALL THE DIFFERENT COLOR OF MONIES.

A LITTLE BIT BEFORE THIS.

AND OUR GENERAL FUND.

WE HAVE SET AT A 20% FUND BALANCE LEVEL.

WE FEEL THIS IS A VERY SOUND SPOT TO BE.

WE DON'T RECOMMEND GOING AWAY ANY LOWER.

IT'S ABOUT $15 MILLION.

WE PLACED THAT 20%.

WE'VE DONE THE MODELING THROUGH GFOA.

THEY'VE GOT A MODEL TO TALK ABOUT RISKS AND CALCULATE WHAT THAT PERCENTAGE IS.

AND THEIR MODEL IS 17 TO 25% IS WHERE A GOOD SPOT FOR A GENERAL FUND SHOULD BE.

SO WE'RE RIGHT IN THAT TARGET.

WE COULD GO A LITTLE HIGHER.

I WOULD NOT RECOMMEND GOING LOWER, ESPECIALLY TO LEADING INTO POTENTIAL RECESSION PERIODS.

THEN WE HAVE OUR OTHER SPECIAL REVENUE FUNDS ARE GENERALLY A 10% WITH THE EXCEPTION OF THE HIGHWAY USER FUND.

WE MAKE THAT ONE A LITTLE BIT HIGHER.

THAT'S A LITTLE MORE VOLATILE.

WE UNDERSTAND THE VOLATILITY OF GAS TAXES, PEOPLE NOT TRAVELING FOR EFFICIENT VEHICLES AND SO FORTH.

WE HAVE A 20% POLICY THERE.

OUR ENTERPRISE FUNDS ARE AT 10%.

HOWEVER, OUR WATER SERVICES FUNDS, THAT DIVISION MADE A RESPONSIBLE CHOICE AND WHAT THE COUNCIL BODY OF WATER POLICY AND IN THEIR POLICY THEY SET 25% OF THEIR ENTERPRISE FUNDS.

CAPITAL PROJECTS ARE 10% AND WE CONSTANTLY REVIEW AND MAKE SURE THESE FUND BALANCES ARE THE APPROPRIATE LEVEL.

KNOWING WE MAY BE GOING TO RECESSION, WE MAY HAVE A BUMP THESE UP FROM THESE OTHER FUNDS FROM 10%, MAYBE A LITTLE HIGHER, JUST TO ASSURE WE CAN MANAGE THROUGH THE POTENTIAL RECESSION THAT WE MAY SEE.

SO I GUESS. YEAH.

YOU GOT ONE MINUTE TILL YOU GET A SIGN.

ONE MINUTE TO PROGRESS.

WE'RE PRETTY CLOSE.

THIS SLIDE IS ALMOST A DUPLICATE.

I DON'T KNOW HOW I MISSED THAT.

JUST A LITTLE BUSY. BUT AGAIN, TALKING ABOUT REASONABLE ESTIMATING RECESSION OR PERIODS AND SO FORTH, ONE TIME FOCUS ON CASH BALANCES AND SO FORTH.

I'M NOT GOING TO TALK MUCH THERE.

AND I CAN'T SAY MORE THAN WE HAVE A DEDICATED PROFESSIONAL STAFF.

THIS WHOLE ORGANIZATION HAS AMAZING PEOPLE.

DURING THE PANDEMIC, PEOPLE STEPPED UP AND ACTUALLY REDUCE EXPENDITURES.

WE SAVE $2 MILLION IN A THREE MONTH PERIOD OF OPERATING EXPENSES BECAUSE WE KNEW WE HAD TO TIGHTEN OUR BELTS.

AND SO WE'RE GRATEFUL THAT THE TEAM STEPS UP AND THEN OUR OUR MANAGEMENT SERVICE STAFF, I'M REALLY PROUD OF THEM.

THEY'RE DEDICATED PROFESSIONALS.

THEY CONSISTENTLY, CONSISTENTLY RECEIVE A CERTIFICATE OF ACHIEVEMENT FOR OUR FINANCIAL REPORTING, OUR ANNUAL FINANCIAL REPORT, AS WELL AS OUR DISTINGUISHED BUDGET PRESENTATION THAT ARE WORST BY THE HIGHEST LEVEL OF PUBLIC FINANCE OFFICERS ASSOCIATION AND OUR PROCUREMENT SIDE.

WE CONSISTENTLY GET THE PROCUREMENT AWARD FOR EXCELLENCE IN PROCUREMENT FOR OUR ORGANIZATION.

WE KNOW IT'S IMPORTANT TO, SINCE WE ARE THE CENTRAL LOCATION FOR THESE TYPES OF SERVICES, WE WANT TO BE ON TOP OF OUR GAME.

AND THIS TEAM DEFINITELY DIDN'T JUST HAVE A CHANCE TO COACH MY STAFF AND THEN.

I'VE GOT 4 MINUTES LEFT.

ANY QUESTIONS? YEAH. TELL US THE JOKE YOU HOPE TO SHOW.

NO, I'M NOT GOOD AT JOKES.

COME ON. IT'S NO MYSTERY.

I'M TERRIBLE. I'M TERRIBLE AT JOKES.

BUT I GOT ONE OF YOU. I GOT A NUMBERS JOKE.

NUMBERS, JOE. LIKE, DOES IT LIKE SPREADSHEETS OR.

WHY WAS SIX AFRAID OF SEVEN?

[01:05:01]

YEAH. OKAY, WELL, SOME DAYS YOU'RE BETTER THAN OTHERS.

ALL RIGHT. ANY QUESTIONS? I LIKE THAT ONE. I HAVE A QUESTION.

YES. CAN YOU GO BACK TO THE PERCENTAGES OF FUND BALANCES? AND LET'S DRILL DOWN JUST FOR A SECOND ON CAPITAL PROJECTS FUND.

THIS IS MORE TO PROMPT.

THOUGHTS AND NOT NECESSARILY TO SOLICIT AN ANSWER.

BUT WE'RE SEEING OUR ACROSS THE BOARD CAPITAL PROJECTS ARE ESCALATING FASTER THAN WE CAN BUDGET FOR IT.

THE INCREASES ARE ASTRONOMICAL, WHETHER IT BE CONCRETE, STEEL, LABOR, ALL OF THE ABOVE.

AND I'M JUST WONDERING IF WE SHOULD BE THINKING ABOUT OUR FUND BALANCE IN THE CAPITAL PROJECTS BECAUSE OF THAT.

IT JUST SEEMS LIKE WE ARE NOW HAVING MORE AND MORE DISCUSSIONS ABOUT HOW DO WE BACKFILL OF FUNDS ON PROJECTS THAT HAVE GOTTEN AWAY FROM THEIR BUDGETED APPROPRIATIONS. WE HAD ONE OF THOSE CONVERSATIONS JUST THIS WEEK, SO I'D LOVE TO GET YOUR THOUGHTS ON THAT.

SO OUR CAPITAL PROJECT FUNDS, IT'S A MULTIYEAR.

IT'S USUALLY TIED TO TAXES, MULTI YEARS AND MANY PROJECTS.

IT'S VERY RARE WE EVER GET DOWN TO 10% IN OUR CAPITAL PROJECT FUNDS.

WE ACTUALLY HAVE A LOT OF RESERVE BUILT UP IN MANY OF OUR CAPITAL PROJECT FUNDS.

THE REASON WE HAVEN'T GONE HIGHER THAN 10% IS THIS CAPITAL PROJECTS ARE ADAPTABLE.

YOU LOOK AT SCOPE OF WORK, YOU CHANGE YOUR SCOPE OF WORK TO FIT IN WITH YOUR RESOURCES OVER TIME.

AND IT'S NOT SOMETHING THAT ONE YEAR WILL HAVE AN IMMEDIATE IMPACT.

YOU'LL HAVE TIME, OVER A FIVE YEAR PLAN TO ADJUST YOUR CAPITAL PROJECTS.

BUT ABSOLUTELY, YEAH, THERE'S GOING TO BE SOME STRAINS.

THERE'S GOING TO BE SCOPING OF PROJECTS THAT THE PROJECTS, TEAM ENGINEERING AND SO FORTH HAVE TO FIGURE OUT HOW TO DELIVER.

I THINK WE'VE BEEN VERY FORTUNATE.

A LOT OF OUR REVENUES RIGHT NOW ARE EXCEEDING PROJECTIONS, SO THEY'RE IN A GOOD SPOT RIGHT NOW.

OKAY. BUT SOME WE WATCH WITH OUR CAPITAL PROJECTS TEAMS, OUR ACCOUNTS, MEET WITH WITH THEM, TALK ABOUT THEIR PLANNING AND REVENUES QUITE OFTEN.

THANKS. I THINK THE CITY COUNCIL IS REALLY LUCKY TO HAVE SUCH A COMPETENT STAFF BECAUSE IT'S KIND OF MY CURRENT JOB OUT.

SO THANK YOU TO YOU AND YOUR TEAM.

EXIT STAGE, RIGHT? NOT ONLY DID YOU END ON THIS GIRLY LITTLE COURSE, YOU GO.

ALL RIGHT. YES.

I REALLY AM GOING TO BRING, LIKE, CHOCOLATES OR SOMETHING.

JUST LOOK OUT FOR IT IN FEBRUARY.

ALL RIGHT. SO WE ACTUALLY HAVE GOTTEN BACK ON TO ON TIME FOR OUR AGENDA.

AND IT LOOKS LIKE WE'LL BE BREAKING FOR LUNCH AND COMING BACK AT 12:15 FOR OUR NEXT PRESENTATION.

AND RIGHT ON CUE, LUNCH WAS JUST DELIVERED.

SO CARRY ON.

THANK YOU, SCOTT.

BASICALLY LIKE, ALL RIGHT.

IS IT DO YOU PRONOUNCE YOUR NAME RHODE OR RHODIE? ROADY ALL RIGHT, CHRIS RHODE.

LET'S LET'S BRING OUR ENERGY BACK.

GOOD AFTERNOON. SO WHAT ARE WE TALKING ABOUT? VERY BASIC BUDGETING THIS AFTERNOON, AND I THINK I WAS ASSIGNED 45 MINUTES.

I THINK I'LL BE TALKING FOR 15 OR 20.

BUT I THINK THAT THIS IS A TOPIC THAT THERE COULD BE QUITE A BIT OF DISCUSSION QUESTIONS ON.

SO I'LL GET A LITTLE BIT OF TIME FOR THAT AS WELL.

I KNOW THAT SEVERAL OF YOU ARE EITHER IN YOUR FIRST OR SECOND YEAR ON THIS OR ARE NEW ENTIRELY TO IT.

SO I'M GOING TO START VERY BROAD STATE, KIND OF A 1000 MILE OR A MILE HIGH FOR YOU, AND WE'LL GET INTO THE WEEDS AT A LATER POINT OR ANY QUESTIONS YOU HAVE AT THE END.

SO FIRST I WANT TO TALK ABOUT WHAT PBB IS.

SO SOMETHING THAT'S KIND OF THE PDB 101, IF YOU WILL.

GOOD REFRESHER FOR THOSE OF YOU THAT HAVE WORKED ON IT BEFORE AND THOSE OF YOU THAT HAVEN'T BEEN AN INTRODUCTION.

SO THERE'S THREE THREE MAIN GOALS FOR WHY WE IMPLEMENT PRIORITY BASED BUDGETING.

THE FIRST IS TO TRY TO IMPLEMENT A DATA DRIVEN DECISION MAKING SO THAT WE, THE BUDGET TEAM AND YOU AS A COUNCIL GO TO CRAFT THE OVERALL BUDGET.

WE CAN MAKE SELECTIONS BASED ON VERY OBJECTIVE CRITERIA.

THE SECOND ONE IS THAT TO PROVIDE BETTER TRANSPARENCY AND ENGAGEMENT WITH THE COMMUNITY.

SO WE HAVE TOOLS WITH PDB THAT WE CAN PRESENT OUR ENTIRE BUDGET IN WAYS THAT REALLY GIVE THE PUBLIC A GOOD IN THE

[01:10:08]

DOOR TO SEE HOW WE SPEND OUR MONEY AND HOW THAT RELATES TO THE PROGRAMS, THINGS THEY WANT TO SEE FROM IT.

THE PROCESS ALSO INHERENTLY, BOTH FOR PUBLIC, BECAUSE WE GO BACK TO PUBLIC EVERY SO OFTEN AND ASK FOR THEIR BIGGEST PRIORITIES AND WHAT THEIR GOALS ARE FOR THE CITY.

SO WE INVOLVE THEM IN THE PROCESS AT THAT POINT.

AND THEN THE THIRD, THE THIRD OBJECTIVE IS THAT IN ADDITION TO OBJECTIVE METRICS, THOSE METRICS ARE GEARED TOWARDS WHAT THE COMMUNITY WANTS.

SO AS WE CRAFT THE BUDGET, WE CAN REALLY TRY TO PRIORITIZE THINGS THAT WE KNOW ARE PRIORITIES OF THE COMMUNITY.

AT THE THOUSAND MILE LEVEL.

SURE. JUST CONTEXTUALLY, DO YOU KNOW HOW MANY MUNICIPALITIES IN THE STATE OF ARIZONA PRACTICE PRIORITY BASED BUDGETING? I DO NOT. I CAN LOOK THAT UP FOR YOU, THOUGH.

I KNOW OF ONE. WELL, MY.

MY. THE ASSUMED ANSWER IS I THINK THERE'S ONLY A HANDFUL AT BEST.

THAT'S THAT'S JUST A CONTEXT FOR FOR SOME OF THE NEWER FOLKS UP HERE.

THIS IS A I'M SURE YOU'LL GET IN THE HISTORY OF A PROCESS.

WE DELIBERATELY DECIDED TO CHANGE JUST A COUPLE OF YEARS AGO RIGHT WHEN I WAS STARTING.

AND WE'LL DO A MUCH BETTER JOB OF RECAPPING ALL OF THAT.

BUT JUST FOR CONTEXT, WHEN I WAS AT THE TO THE ELECTED OFFICIALS TRAINING WITH THE ARIZONA LEAGUE OF CITIES AND TOWNS IN NOVEMBER, DECEMBER, I'M ALREADY FORGETTING WHICH MONTH THAT WAS.

I, WE WERE IN A ROOM FILLED WITH THREE OR 400 PEOPLE FROM CITIES ALL OVER THE STATE, AND WE WERE GOING TO START TALKING ABOUT BUDGETING.

AND I APPROACHED THE PERSON WHO WAS IN CHARGE OF THAT CONVERSATION AND ASKED HER IF SHE WAS GOING TO MENTION PRIORITY BASED BUDGETING.

AND SHE LOOKED AT ME LIKE, WHO ARE YOU? GET OUT OF MY WAY.

IT WASN'T WORTH HER TIME TO SPEND ANY TIME TALKING ABOUT IT BECAUSE NO ONE ELSE IN THE STATE WAS DOING IT.

IT JUST WASN'T A RESOURCE THAT THE LEAGUE WAS THROWING AT THE CROWD.

SO WE'RE REALLY OUT HERE.

WE'RE REALLY AT THE LEADERS OF THE PACK WHEN IT COMES TO THIS TYPE OF BUDGETING.

AND I ENCOURAGE YOU NOT TO TAKE THAT FOR GRANTED.

I THINK IT'S AN AMAZING THING, ESPECIALLY BECAUSE GOAL NUMBER THREE, THE POINT IS ALIGNING THE BUDGET PROCESS.

A BUDGET IS A VALUES DOCUMENT, RIGHT? IT EXPRESSES WHAT OUR VALUES ARE.

AND TO REALLY DELIBERATELY ALIGNMENT WITH COMMUNITY PRIORITIES IS INCREDIBLY FORWARD THINKING.

IT'S REALLY REFRESHING AND IT'S VERY MUCH APPRECIATED BY THE COMMUNITY, EVEN IF THEY DON'T REALIZE IT.

CAN I ADD TO THAT ALSO IN THE REALM OF CONTEXT, THE WHILE YOU DON'T HEAR ABOUT IT IN THE ARIZONA LEAGUE OF CITIES, BUT IF YOU WERE TO ATTEND A NATIONAL LEAGUE OF CITIES CONFERENCE ON ON BUDGETING, THIS WOULD BE A TOPIC.

AND WE'VE SEEN MAPS DEPICTING WHAT LOCALITIES HAVE EMBARKED UPON PRIORITY BASED BUDGETING.

AND THERE ARE QUITE A FEW, BUT THERE ARE MANY IN ARIZONA, FRANKLY, AND WE ARE A BIT OF A PIONEER IN THAT REGARD.

BUT ELSEWHERE, IT IS GETTING SOME TRACTION.

ABSOLUTELY. SO THE WAY OUR BUDGET WORKS, A SHORT SUMMARY IS THAT WE TAKE EVERY SINGLE THING THE CITY DOES, WHETHER THAT'S A SERVICE WE PROVIDE, A PROGRAM THAT WE RUN FOR THE COMMUNITY, WHETHER IT'S OUR OWN INTERNAL SUPPORTING FUNCTIONS, EVERYTHING WE DO EVERY MINUTE OF STAFF, TIME, EVERY DOLLAR SPENT, AND MAKE THAT INTO ASSIGN THOSE TO PROGRAMS. SO THOSE CAN BE VERY SPECIFIC OR THEY CAN BE VERY BROAD.

FOR EXAMPLE, I OVERSEE THE OFFICE LABOR STANDARDS.

THAT'S A PROGRAM WE'RE WORKING WITH PUBLIC WORKS, PUBLIC STREETS, THAT'S A PROGRAM I JUST IN SOLID WASTE.

I THINK WE HAVE SIX OR EIGHT PROGRAMS FOR COMMERCIAL COLLECTION VERSUS RESIDENTIAL COLLECTION, AND WE HAVE THE MATERIALS RECOVERY CENTER.

SO ALL OF THOSE INDIVIDUAL THINGS, WE DO OUR PROGRAMS. SO FROM THAT YOU CAN ASSIGN FUNDS TO EACH OF THOSE.

THAT'S HOW MUCH MONEY THAT WE SPEND IN EACH OF THOSE PROGRAMS. AND THAT'S A DIFFERENT WAY TO VIEW IT THAN A LINE OUT A BUDGET WHERE YOU CAN SAY, OH, THIS DIVISION SPENT $500 IN OFFICE SUPPLIES, BUT REALLY WHAT IS OFFICE SUPPLIES GO INTO SUPPORTING WHICH PROGRAMS? SO WE TRY TO LOOK AT IT THROUGH THAT WAY INSTEAD OF JUST A LINE ITEM.

THEN WE TAKE EVERY ONE OF THOSE PROGRAMS AND WE EVALUATE THOSE, GIVE THEM A SCORE BASED ON HOW WELL THEY ALIGN WITH OUR PRIORITIES AND OBJECTIVES.

SO THOSE ARE ONES THAT COUNCIL AND THE COMMITTEE COME UP WITH YEARS AGO.

I'LL EXPLAIN HOW THAT PROCESS WORKED IN A SECOND YEAR.

[01:15:01]

BUT WE HAVE OUR OVERARCHING GOALS AND OBJECTIVES, WHICH ARE TO USE THREE DIFFERENT FEATURE HERE.

AND THEN FOR EACH OF THOSE THINGS, WE EVALUATE EVERY SINGLE PROGRAM AND SCORE IT ON HOW ALL THAT ALL THAT IS.

AND I'LL SHOW YOU WHAT THOSE ARE IN A MINUTE.

BUT EVERY PROGRAM WILL NOT SCORE WELL ON EVERY PRIORITY AND OBJECTIVE, BUT SOME PROGRAMS WILL SCORE REALLY HIGHLY ON SOME, BUT NOT WELL ON OTHERS.

AND WE CAN USE THAT TO DETERMINE HOW WE'RE DOING AS AN OVERALL ORGANIZATION OF ACHIEVING THOSE OBJECTIVES BASED ON HOW MUCH WE'RE FUNDING EACH EACH PROGRAM.

AND I WANT TO NOTE THAT PRETTY MUCH BUDGETING DOES NOT INCLUDE GRANTS OR CAPITAL BUDGETS.

THOSE JUST AREN'T THE ONGOING AND SAME TYPE OF FUNDS THAT WE USE FOR THAT.

AND THEN MENTIONED THOSE PRIORITIES.

OBJECTIVES WERE DETERMINED BEFOREHAND BY COMMITTEE AND THEN ULTIMATELY BY COUNCIL AS WELL.

SO THAT KIND OF GIVES US THE BROAD WAY TO GO ABOUT IT.

HERE'S THE HISTORY OF HOW WE HOW WE GOT HERE.

SO WE STARTED IN SUMMER 2019.

THAT'S WHEN WE FIRST EMBARKED ON OUR JOURNEY.

BY THE FALL OF 2019, WE WERE ENGAGING THE COMMUNITY AND COUNCIL WITH HOW YOU WANTED TO CREATE THE PHRASE.

AND THAT WAS THE FIRST STEP IS WHAT DO YOU WANT THE CITY TO BE DOING? SO WE STARTED THOSE CONVERSATIONS IN FALL 2019, SUMMER OF 2020, WHICH THE COMMUNITY AND ASK THEM, WHAT DO YOU WANT THE CITY TO BE DOING? RECONCILED ALL OF THOSE ALL OF THOSE THAT GIANT MAP OF IDEAS THAT CAME FROM COUNCIL AND FROM THE COMMUNITY ADOPTED SEVEN KEY SEVEN KEY PRIORITIES AND OBJECTIVES.

AND I'LL SHOW YOU IN A SECOND HERE THAT WAS ADOPTED IN NOVEMBER OF 2020.

THOSE ARE STILL BEING USED TODAY.

WE WANT TO REEVALUATE THOSE EVERY SO OFTEN.

SO WE'RE THINKING THAT THIS SUMMER WOULD BE A VERY GOOD TIME TO GO BACK AND RE EVALUATE THOSE.

SEE IS ANYWHERE WE MISSED ANYWHERE THAT THE NEW AREAS WE WANT TO FOCUS ON IF OUR PRIORITIES OBJECTIVES HAVE CHANGED.

SO YOU'LL HAVE A CHANCE LATER THIS SUMMER TO BE ABLE TO HELP THE GOVERNMENT DO THE COMMUNITY OUTREACH.

WE'RE GOING TO BE HOLDING, HOLDING WHERE PEOPLE CAN VOICE THEIR OPINIONS.

WE'LL OPEN SURVEYS ONLINE SO PEOPLE CAN SUBMIT THEM WITHOUT HAVING TO GO IN-PERSON.

WE'RE GOING TO DO THAT. THIS WILL BE A PRETTY LARGE SCALE OPERATION.

IT WILL BE MULTIFACETED.

IT'LL BE OVER THE COURSE OF PROBABLY SEVEN MONTHS.

BASICALLY WITH THE GOAL OF THAT BEING THAT BY FALL OF THIS YEAR, WE CAN WE CAN REVISE OR ADOPT NEW APPROACHES AND OBJECTIVES SO THAT NEXT BUDGET YEAR GOALS WILL BE IN PLACE.

AND FOR FISCAL YEAR 25, I THINK THAT WILL BE MY GOODNESS, WE'LL BE ABLE TO USE THOSE TO A NEW GENERATION.

HERE ARE OUR CURRENT PURCHASE OBJECTIVES.

THERE'S SEVEN OF THEM. AND I WANT TO PULL OUT ONE SPECIFICALLY HERE BECAUSE ONE OF THESE WORKS DIFFERENT THAN THE OTHER SIX.

AND THAT'S THIS BLUE IN THE UPPER RIGHT HAND CORNER, HIGH PERFORMING GOVERNANCE.

EVERY PROGRAM SEE, THE CITY HAS IS EITHER A COMMUNITY PROGRAM OR GOVERNANCE PROGRAM.

A COMMUNITY PROGRAM IS ANYTHING THAT PHASES TOWARDS THE PUBLIC AND THE PUBLIC DIRECTLY INTERACTS WITH.

SO A LOT OF PUBLIC WORKS THINGS WOULD BE COMMUNITY PROGRAMS OR SOMETHING, PROGRAMS AT THE COMPLEX.

THAT'S PRETTY NEAT PROGRAM.

MAYBE A LEADER THAT COMMUNICATES WITH WITH, WITH WITH PEOPLE OF OUR CITY IN OUR COMMUNITY IS A COMMUNITY PROGRAM.

AND THEN THE GOVERNANCE PROGRAMS ARE JUST THINGS THEY GO TO SUPPORTING OUR ORGANIZATION.

SO THAT'S THE FINANCE IT A LOT OF THINGS THAT ARE RICK TADDER OR FALL INTO THAT UNDER THAT THAT GUIDE.

SO WE ACTUALLY EVALUATE PROGRAMS DIFFERENTLY DEPENDING ON WHICH OF THOSE THEY'RE IN.

IF IT'S A COMMUNITY PROGRAM, WE DON'T EVALUATE IT ON HOW WELL IT DOES FOR GOVERNANCE.

THAT'S A TOTALLY DIFFERENT FUNCTION AND VICE VERSA.

WE'RE NOT GOING TO EVALUATE HOW WELL OUR IT STAFF IS, IS GIVING US A LIVABLE COMMUNITY BECAUSE THEY DON'T REALLY DO THAT.

THEY SUPPORT THE GOVERNMENT ORGANIZATION SO THAT ONE KIND OF ACTUALLY GETS CALLED OUT SEPARATELY, THE OTHER ONES.

AND WITHIN EACH OF THESE PRIORITIES, WE HAVE A LEVEL OF OBJECTIVES.

SO I DON'T KNOW IF THOSE ARE TOO SMALL FOR YOU TO READ.

CAN YOU SEE THOSE AT ALL? WELL, NUMBER I CAN SET IT.

THERE ARE WORDS. YOU CAN SEE THAT THERE ARE WORDS.

OKAY. YEAH.

I'M SORRY. WE ACTUALLY HAVE IT RIGHT HERE FOR YOU.

THERE YOU GO. THANK YOU, RICK.

I FORGOT ABOUT THAT. SO IF YOU IF YOU CARE TO FOLLOW ALONG ON THE BACK SET OF DISABILITIES.

YEAH. IS THE SAME, SAME STORY HERE, WHICH IS UNDER EACH ONE WHAT THE DIFFERENT OBJECTIVES ARE.

AND THANK YOU STERLING.

YOU GREAT. IF YOU WANT TO SHARE ONE YOU'RE WELCOME TO.

AND LIKE I SAID EARLIER, JUST THE PROGRAM MIGHT SCORE WELL ON ONE OF THESE PRAIRIES AND NOT OTHERS.

SAME THING HAPPEN FOR THE INDIVIDUAL OBJECTIVES BELOW THEM.

SO IF WE TAKE A LOOK, LET'S TAKE A LOOK AT ONE OF THESE IN PARTICULAR HERE.

LET'S TAKE A LOOK AT OUR LIVABLE COMMUNITY PRAIRIE.

THAT'S THE PURPLE ONE THAT'S NEXT TO THE RIGHT.

THAT'S GOT SIX OBJECTIVE OBJECTIVES UNDERNEATH IT.

AND IT'S VERY WEALTHY COMMUNITIES AND PARTNERSHIPS, AMENITIES AND ACTIVITIES, REGIONAL PARTNERS WHICH PROVIDE EQUITABLE AND INCLUSIVE EDUCATIONAL

[01:20:10]

OPPORTUNITIES, ATTAINABLE AFFORDABLE HOUSING, DIVERSE EMPLOYMENT OPPORTUNITIES.

THOSE ARE NOT THOSE ARE ALL VERY DIFFERENT THINGS.

AND ONE OF OUR PROGRAMS MIGHT WORK ON ONE OF THOSE THINGS, BUT NOT NECESSARILY ALL OF THEM.

WE JUST LOOK AT HOW WELL THOSE ANY ONE OF THOSE METRICS.

SO IF, FOR EXAMPLE, WE HAVE ONE THAT THERE'S A LOT TO SUPPORT ATTAINABLE AND AFFORDABLE HOUSING BUT DOESN'T DO A WHOLE LOT OF SERVICE, IT COULD STILL WORK VERY WELL AND LIVABLE COMMUNITY BECAUSE OUR PRIORITIES ARE MULTIFACETED AND OUR PROGRAMS JUST HIT ONE OF THOSE THINGS TO SCORE WELL.

AND THEN UNDER PERFORMING GOVERNANCE, EACH OF THOSE SIX ITEMS ARE WHAT WE EVALUATE OUR INTERNAL PROGRAMS FOR.

SO HIGH QUALITY CUSTOMER SERVICE, CONSISTENT COMMUNICATION STRATEGIES, PUBLIC TRUST AND TRANSPARENCY AND ACCOUNTABILITY, FISCAL STABILITY AND RESPONSIBILITY, INNOVATIVE PROGRAMS, AND THEN BEING EMPLOYER OF CHOICE.

SO IT'S OBVIOUS THAT SOME SOME DIFFERENT PROGRAMS MIGHT BE VERY GOOD FOR HR PROGRAMS. SO WE'RE REALLY WELL ON BEING AN EMPLOYER OF CHOICE, BUT THEY MIGHT NOT SCORE VERY WELL ON THINGS LIKE FISCAL STABILITY OR WHATNOT.

YOU KNOW, THOSE ARE DIFFERENT OBJECTIVES.

SO WE WEIGH THEM DIFFERENTLY.

[INAUDIBLE] RIGHT NOW AND WE'LL LOOK TO AMEND ALL OF THIS NEXT YEAR.

SO IT'LL BE A AN OPPORTUNITY FOR YOU ALL TO REALLY INVOLVE YOURSELVES IN THE COMMUNITY AS WELL.

SO REFINING THESE AND SEEING WHETHER WE LOOK PAST OR THAT NEEDS TO BE REFINED OR OR WHAT HAVE YOU.

EVERY YEAR WE GO THROUGH A CYCLICAL ANNUAL PROCESS FOR THIS.

IT STARTS WITH REVIEWING THE INVENTORY.

SO THAT'S JUST LOOKING AT OUR PROGRAMS AND SAYING, ARE THESE STILL RIGHT? IS THIS WHAT WE'RE STILL DOING? IS THE DESCRIPTION OF THIS PROGRAM MATCH WHAT WE ACTUALLY DO? IS THERE ANYTHING WE'RE MISSING? SO EVERY DIVISION WILL GO THROUGH EVERY SECTION WE'LL GO THROUGH EVERY YEAR AND LOOK AT THEIR PROGRAMS AND SAY, IS EVERYTHING ACCOUNTED FOR? EVERYTHING THAT WE DO ACCOUNTING FOR, IS THIS RIGHT? AND SOMETIMES PROGRAMS CHANGE IF GRANT MONEY GOES AWAY.

SOMETIMES THERE'S A GRANT FUNDED POSITION THAT THAT GOES AWAY AND IT'S SOMETHING THAT GOES AWAY.

SO WE CHECK THOSE EVERY YEAR TO MAKE SURE THAT THEY'RE STILL ACCURATE.

THEN WE TAKE THE BASE BUDGET FOR THAT FISCAL THAT FISCAL YEAR AND ASSIGN EVERY DOLLAR IN THE FISCAL IN THAT BASE BUDGET TO ONE OF THOSE PROGRAMS. SO FOR EVERY NON PERSONAL ITEM WE LOOK AT, OKAY, IF IT'S A 500 ITEM FOR OFFICE SUPPLIES, HOW MUCH DO YOU KNOW HOW MUCH OF THAT MONEY IS GOING TOWARDS A PROGRAM AID VERSUS PROGRAM B PROGRAM? SO IN PUBLIC AFFAIRS, WHEREVER WOULD BE SAYING, OKAY, HOW MUCH THAT'S GOING TOWARDS LABOR STANDARDS, HOW MUCH IS GOING TOWARDS OUR INDIGENOUS OUTREACH, HOW MUCH OF IT IS GOING TOWARDS OUR VIDEOGRAPHY AND ALL THOSE THINGS.

WE BREAK IT UP SO THAT THOSE ITEMS MAY BE IN SEVERAL DIFFERENT PROGRAMS. THE SAME THING WITH OUR PERSONNEL.

SO EVERY POSITION FOR THE CITY WE SAY, HOW MUCH OF YOUR TIME DO YOU SPEND IN EACH OF THESE POSITIONS? AND THAT IS REQUIRE A LITTLE BIT OF AN ESTIMATE.

BUT WE AT THE END OF THE DAY, IT'S A REAL GOOD BALLPARK LOOK OF WHERE WE'RE SPENDING MONEY IN THE CITY AND WHAT PROGRAMS WE'RE SUPPORTING WITH NON PERSONNEL AND WITH PERSONNEL COSTS. AT THAT POINT, OUR SYSTEM IS SET READY TO GO IF THERE'S ANY NEW PROGRAMS, ANYTHING NEW THAT CAME ABOUT, I DON'T THINK WE HAD ANY THIS YEAR.

WE HAD FOUR OR FIVE LAST YEAR, WHICH USUALLY IS PRETTY SHORT.

WE THEN GO THROUGH AND SCORE THOSE NEW PROGRAMS TO MAKE SURE THEY'RE STILL COMPATIBLE WITH ALL THE EXISTING ONES.

WE DON'T GO BACK AND RECORD THEM EVERY YEAR BECAUSE THE OBJECTIVES DIDN'T CHANGE.

IF THE PROGRAM DIDN'T CHANGE IT, SCORES WOULD REMAIN THE SAME.

THE PROCESS WE'RE ABOUT TO EMBARK ON A STEP FOUR WHERE FOLKS FROM THE CITY ARE SUBMITTING THEIR BUDGET REQUESTS FOR THE NEXT FISCAL YEAR.

THEY'RE GOING TO PRESENT AND DEFEND THEIR REQUEST BASED ON THE PROGRAMS THOSE THOSE NEW FUNDS WOULD GO TO SUPPORT.

AND THEN THE BUDGET TEAM WILL ANALYZE THOSE REQUESTS AND MAKE A RECOMMENDED BUDGET AND YOU'LL HAVE A CHANCE TO.

THE VICE MAYOR ASKED ME RECENTLY WHERE IN THIS JOURNEY WE WERE ON A SCALE OF 0 TO 10, AND I WON'T TELL YOU MY ANSWER TO HIM, BUT I'D BE.

I THINK WE'D ALL LIKE TO HEAR WHAT WHERE YOU THINK WE ARE IN TERMS OF FULL IMPLEMENTATION OF PRIORITY BASED BUDGETING.

I WOULD SAY WE'RE AT SIX OR SEVEN.

WELL, THERE YOU GO. YOU SAID YOU SAID SEVEN.

I SAID SO. OKAY, THAT'S GOOD.

WE STILL HAVE SOME WORK TO DO.

WE'RE STILL WORKING WITH OUR VENDOR ON THE TOOL TO MAKE IT MORE ACCESSIBLE.

SOME OF OUR REQUESTS AND MAKE IT MORE RESPONSIVE TO THINGS YOU WANT TO DO.

BUT WE'RE WE'RE GETTING THERE.

WE'RE GETTING CLOSER.

AND HOPEFULLY THE NEXT YEAR OR TWO, THAT NUMBER WILL BE AT A NINE OR TEN THAT WE'LL BE WE'LL BE ALL THE WAY THERE.

IT'S IT'S A JOURNEY FOR SURE.

HOW HOW COULD WE DO IT IN TERMS OF GETTING THIS INFORMATION OUT TO THE PUBLIC?

[01:25:03]

I THINK WE'RE DOING A PRETTY GOOD JOB.

AND I'M GOING TO SHOW YOU THAT HERE IN A SECOND.

SO IF YOU CAN HOLD UP THAT QUESTION FOR NOW, I'LL SHOW YOU EXACTLY WHAT WE'RE GETTING FIXED.

SO ONE OF THE NICE THINGS ABOUT PBB IS THAT ONCE WE FINISH OUR BUDGET, IT'S COMPLETE.

WE CAN SHOW THE CITY, THE CITIZENS OF THE CITY, EXACTLY WHERE WE'RE SPENDING OUR FUNDS AND HOW WELL THE PROGRAM WE'RE SPENDING MONEY ON.

HOW WILL THOSE PROGRAMS SCORE AGAINST THE PRIORITIES AND OBJECTIVES THAT THEY GIVE? THEY HELP US CREATE SO THAT THEY'VE TOLD US WHAT THEY WANT US TO BE DOING.

WE CAN THEN SHOW THEM HOW WELL WE'RE RESPONDING TO THAT.

I NOT LIKE THE CLEAR.

I DON'T LIKE THE CLEAR. I DO.

I DO THAT. TOBY'S CALLED.

THEY HAVE A MOUSE PAD. JUST GRAB A SHEET OF PAPER.

MAKE SURE THIS.

BUT IF THIS PAGE LOADS HERE, WE CAN SHOW YOU AND GET TEAMS MEETING AS WELL SO OUR PUBLIC CAN SEE IT.

THE COMPUTER SCREEN FOR THAT STATE IS SHARING.

IT IS. OKAY. WELL, THANK YOU, STEVE.

IT TOOK A SECOND TO LOAD WHEN I TRIED TO BACK, BUT SO HERE WE GO.

SO IF IT'S OKAY, I'M GOING TO STAND OVER HERE JUST SO I CAN RUN IT.

AND I APOLOGIZE FOR THE AWKWARD ANGLE I'LL BE STANDING IN HERE.

BUT THIS IS WHAT OUR.

OUR OUR PAGE LOOKS LIKE FOR THE PUBLIC AT THE TOP OF THE SCREEN THERE YOU SEE THE DIFFERENT COLOR CODED OPTIONS.

THOSE ARE OUR PRIORITIES AND OBJECTIVES.

SO IF YOU'RE A MEMBER OF THE PUBLIC, YOU CAN GO IN AND SAY, WELL, I REALLY WANT TO SEE HOW WELL THEY'RE DOING AT ONE OF THESE THINGS.

YOU CLICK ON THAT PARTICULAR ONE BY DEFAULT, IT GOES TO HYPER FROM A GOVERNANCE.

BUT IF YOU SAY, I REALLY WANT TO SEE HOW WELL THE CITY IS DOING AND CREATING A SAFE AND HEALTHY COMMUNITY, I CLICK ON THIS BROWN TAB RIGHT HERE.

IT SHOWS YOU UNDERNEATH THAT EACH OF THE SPECIFIC OBJECTIVES BELOW THAT YOU CAN SEE HOW MUCH FUNDS THE CITY SPENDS AND HOW WELL THE PROGRAM SCORE EACH OF THESE DIFFERENT OBJECTIVES.

SO YOU CAN SEE THAT. PART OF OUR WHOLE BUDGET, WHICH IS, I THINK ABOUT 137, $130 MILLION OR SO, ONLY A SMALL AMOUNT, BUT I THINK IT'S 25 OR 30 MILLION GOES TOWARDS GOVERNANCE PROGRAMS AND THE REST GO TO OUR COMMUNITY PROGRAMS. IN THOSE COMMUNITY PROGRAMS, YOU CAN SEE THAT OUR SAFE AND HEALTHY COMMUNITY, A LOT OF THOSE PROGRAMS ARE REALLY THE DARKEST, DARKEST COLOR THERE.

THERE'S FOUR QUADRANTS.

SO Q1, Q2, Q3 AND Q4 PROGRAM.

THE HIGHER IT SCORES, THE BETTER QUADRANT GETS INTO AND THE DARKER IT SHOWS UP HERE.

SO OVER HALF OF THE FUNDS THAT WE SPEND ON COMMUNITY BASED PROGRAMS DO REALLY WELL IN HELPING US ACHIEVE A SAFE AND HEALTHY COMMUNITY.

YOU COULD SEE THAT TAPER OFF ALL THE WAY DOWN.

THAT DOESN'T MEAN THAT THESE THINGS ARE BEING DONE.

IT JUST MEANS THAT OF ALL THE FUNDS THAT WE SPEND, THAT'S HOW WELL THEY SCORE EACH OF THOSE THINGS.

YOU CAN YOU CAN GET THIS FOR DIFFERENT WAYS THAT YOU WANT TO SEE IT AS A PLOT.

HERE. YOU CAN LOOK AT OUR PROGRAMS SPECIFICALLY AND SEE WHICH PROGRAMS HAVE THE MOST MONEY AND HOW DO THEY SCORE ON THIS ITEM.

AGAIN, THIS IS JUST LOOKING AT THAT SAFE AND HEALTHY COMMUNITY.

WE CAN CHANGE THAT AT THE TOP.

BUT EVERY PROGRAM HERE IS THE SIZE OF IT.

IT'S HOW MUCH EXPENDITURE WE PUT ON THAT ITEM.

AND THE COLOR OF IT IS HOW WELL IT WORK.

SO UNDER SAFE AND HEALTHY COMMUNITY, THIS ONE SCORES PRETTY WELL.

THIS IS OUR EMERGENCY AND NOT EMERGENCY RESPONSE.

SO THAT'S THAT'S A POLICE PROGRAM AND THAT MAKES SENSE.

THAT WOULD SCORE VERY HIGHLY FOR A SAFE, SAFE COMMUNITY BECAUSE THE SMALLER ONES OVER HERE, THIS ONE IS COMMERCIAL RECYCLING COLLECTIONS.

THAT DOESN'T REALLY DO MUCH TO KEEP OUR COMMUNITY SAFE.

SO IT DOESN'T SCORE VERY WELL IN THIS PARTICULAR METRIC, DOESN'T MEAN IT'S NOT A WORTHWHILE PROGRAM.

IT DOESN'T SCORE WITH ELSEWHERE.

BUT IF YOU'RE LOOKING AT IT FROM A LENS OF THIS PARTICULAR PRIORITY, YOU CAN SEE WHICH PROGRAMS SCORE WELL AND WHICH ONES DON'T.

YOU ALSO KNOW AND OTHER ONES ENVIRONMENTAL STEWARDSHIP ARE DRAINS TO AS WELL.

AND THAT ONE, WHILE OUR WILDFIRE PROGRAM DOES VERY WELL FOR OUR SUSTAINABILITY.

SO YOU CAN SEE THESE THESE ONES CHANGE BASED ON THE ONES YOU WANT TO LOOK AT.

FINALLY, IF YOU WANT TO REALLY GET INTO IT, YOU CAN GO TO A TABLE OF YOU.

THIS THIS PULLS UP.

EACH INDIVIDUAL PROGRAM SHOWS YOU THE DESCRIPTION FOR WHAT IT DOES.

AND YOU CAN YOU CAN SEARCH FOR A CERTAIN PROGRAM.

IF THERE'S A CERTAIN PROGRAM YOU WANT TO LOOK AT AND SEE HOW IT SCORES, THIS IS THE PLACE YOU CAN DO IT SO YOU CAN SEE IT.

THE FIRST TAB IS KIND OF AN OVERALL BUDGET OF HOW WELL DOES THE OVERALL BUDGET DO IN EACH OF THESE OBJECTIVES.

SECOND PAGE SHOWS THE INDIVIDUAL PROGRAMS, AND THE THIRD PAGE GOES EVEN DEEPER SO YOU CAN SEARCH BY A PROGRAM AND THEN SEE HOW THAT DOES ON THOSE METRICS.

[01:30:08]

I'M GOING TO GO BACK TO MY PART HERE.

MAGIC. MAGIC.

JUST LIKE THAT. OKAY.

PERFECT. I WASN'T SURE IF IT WAS SET TO THE STAGE.

YEAH. SO I THINK YOU COVERED THIS FIRST.

NOW IT'S JUST MY BRAIN.

THE. THE PRIORITY BASED BUDGETING IS FOR THE PROGRAMS BECAUSE THERE'S SOME NON SEXY STUFF THAT ARE ESSENTIAL FOR RUNNING.

THERE IS A REALITY THAT ISN'T GOING TO REALLY NECESSARILY RANK IN ANY PRIORITY, BUT IT'S NECESSARY TO.

ABSOLUTELY. AND THE IDEA WITH THIS IS THAT AS WE ARE MAKING OUR BUDGET DECISIONS, THIS IS JUST A LENS WE CAN LOOK AT THINGS THROUGH WHEN WE REQUEST COME IN FOR MORE FUNDS. WE CAN SAY, OKAY, WELL, WHO DOES THIS BENEFIT AND HOW DOES IT BENEFIT OUR COMMUNITY? IS THE BENEFIT THIS PARITY THAT THIS OBJECTIVE IS THAT ONE THAT'S BEING WELL SERVED NOW OR IS NOT BEING WELL SERVED NOW? IT'S JUST A TOOL THAT ALLOWS US TO BETTER MAKE DECISIONS.

AND LAST YEAR.

I'M ONLY MY SECOND YEAR IN THIS, SO I CAN ONLY GIVE FROM MY OWN EXPERIENCE.

THE PREVIOUS YEAR WE DID HAVE SOME SOME AREAS WHERE WE HAD TO GRANT MORE FUNDS TO PROGRAMS THAT DIDN'T SCORE VERY WELL BECAUSE THERE ARE THINGS WE NEED TO BE DOING MINUS THE COST OF OUR WEBSITE A LITTLE BIT.

LAST YEAR THAT DIDN'T SCORE REALLY, REALLY HIGHLY LOT OF THESE PROGRAMS. WE NEED MORE MONEY FOR CODIFYING OUR CITY CODE.

THAT'S THAT'S NOT SOMETHING THAT COULD BE A REAL SEXY EXPENDITURE, BUT IT'S A VERY NECESSARY THING.

SO THANK YOU.

SO THERE ARE THINGS IN THERE THAT WE'RE NOT BOUND TO, BUT IF THERE'S TWO TWO PROGRAMS AND ONE SCORES, IT'S OF COURSE, FOUR QUARTILES, SO WE'LL SAY WENT THROUGH FOUR ONE SCORES A 3.7 AND ONE SUPPORTS THE 3.6.

WE'RE NOT REQUIRED TO GIVE THOSE SCORES A LITTLE BIT HIGHER.

WE CAN USE THAT AS A DECISION OR AS A AS A TOOL TO MAKE OUR DECISION IN WHICH ONE NEEDS A WRITE DOWN.

SO KIND OF WHEN YOU TAKE A STEP BACK, WE SHOULD BE FUNDING MORE THINGS THAT COME IN IN QUARTILES ONE AND TWO, BUT THAT'S NOT ALWAYS THE CASE.

THERE WILL STILL BE THINGS THAT WE'RE FINDING THAT ARE QUARTILE THREE AND FOUR BECAUSE THEY'RE NECESSARY AND BECAUSE THOSE OPINIONS ARE NOT PERFECT.

IT'S A TOOL WE USE TO MAKE OUR DECISIONS AND THEN TO PRESENT OUR DATA PUBLIC AND JUSTIFYING THOSE DECISIONS.

THAT'S KIND OF THE WAY IT WORKS THERE.

CHRIS, WILL YOU BE SHOWING WE HAVE A PIE CHART THAT SHOWS HOW WE'RE DOING ON THE FOUR QUARTILES? OKAY, WE DO HAVE THAT HERE JUST GOING OFF OF MEMORY QUARTILE ONE AND TWO, WHICH WOULD REPRESENT THE TWO HIGHEST PRIORITIES.

I THINK LIKE OVER 70% OF OUR EXPENDITURE BEFORE THAT WERE REALLY CLOSE TO 75%.

THANK YOU, 75%.

SO ROOM FOR IMPROVEMENT, BUT WE'RE DOING PRETTY WELL.

SO. YEAH, YEAH.

I THINK I TALKED TO EACH OF THESE POINTS OF SOME REGARD FROM THAT LAST SLIDE THERE, BUT DIFFERENT WAYS YOU CAN VIEW THE INFORMATION.

THERE'S A LOT OF THERE'S DIFFERENT ANGLES.

YOU CAN LOOK AT IT THROUGH OUR BASIC TOOL SHOWS, ALL OF THOSE.

IT DOESN'T SHOW LINE.

SO IF A PERSON'S WANTING TO SAY, YOU KNOW, HOW MUCH 200101021, HOW MUCH MONEY ISN'T THAT FUNNY.

DOESN'T REALLY SHOW THAT BECAUSE THAT'S THAT'S THAT'S AVAILABLE.

BUT THAT'S NOT REALLY THE INFORMATION THAT MOST OF THE PUBLIC WANTS TO SEE.

THAT'S NOT THE WAY THEY WANT YOUR BUDGET.

THEY WANT TO SAY, I WANT TO SEE HOW MUCH IS SPENT ON MAKING YOUR COMMUNITY MORE SUSTAINABLE OR HOW MUCH YOU WANT TO SPEND ON BETTER INFRASTRUCTURE.

THIS IS A GOOD WAY TO VIEW THAT.

IT TAKES A STEP BACK AND MAKES IT EASIER TO DIGEST FOR MEMBERS OF OUR PUBLIC AS WELL AS US.

SOMETIMES IT'S PRETTY COMPLEX, SO.

THIS IS MY LAST SLIDE HERE.

YEAH. ANY OTHER QUESTIONS OR DISCUSSION POINTS ON THIS ONE? WELL, MAYBE THIS IS MORE OF A PROMPT FOR YOU TO ELABORATE UPON, BECAUSE YOU'RE GOING TO HAVE TO CORRECT ME AS I'M TALKING HERE, OR AT LEAST GO DEEPER INTO IT. BUT I THINK THE POINT IS THAT THIS IS IN CONTRAST TO WHAT THE WAY THINGS USED TO BE DONE.

AND MY UNDERSTANDING IS THAT COUNCILMEMBERS AND FORMER MAYORS WERE VERY FRUSTRATED WITH COMING ON BOARD LIKE THIS AND SEEING THE BUDGET PROCESS THE OLD WAY. AND AGAIN, THE WAY IT'S MOSTLY DONE THROUGHOUT THE STATE OF ARIZONA, WHERE THE VARIOUS AGENCIES AND BUREAUCRACIES GET TOGETHER AT THE APPROPRIATE TIME OF YEAR AND SAY, THIS IS HOW MUCH MONEY WE SPENT LAST YEAR.

WE WANT THIS MUCH MONEY AGAIN, EXPENSES ARE GOOD.

THIS IS HOW MUCH MORE MONEY WE WANT.

AND IT WAS NEVER COUCHED IN THAT OVERALL ARCHING LENS OR CONVERSATION AROUND WHAT THE COMMUNITY'S ASKING FOR, WHY WE GOT ELECTED AS OPPOSED TO SOMEONE ELSE.

YOU KNOW, THOSE THOSE VALUES AND PRIORITIES AND TREATING A BUDGET AS A MORAL DOCUMENT, WHICH IS REALLY WHAT IT IS

[01:35:08]

INSTEAD OF JUST A SPREADSHEET FOR A.

GRAVY TRAIN OF JUST PROVIDING.

JUST DOING WHAT WE DID IN THE PAST AND NOT ASKING QUESTIONS ABOUT IS THAT WORKING AND ARE THERE OTHER WAYS TO REDIRECT THESE FUNDS OR PRIORITIZE THEM? SO AGAIN, THERE'S A LOT OF TIME TO TALK ABOUT ALL THIS.

THAT WAS MOSTLY JUST A PROMPT.

I'M SURE SOMEONE ELSE CAN SUM IT UP BETTER.

BUT MY POINT IS THAT WE'RE IN A VERY DIFFERENT PROCESS THAN WE USED TO BE, AND WE SHOULD ALL BE VERY EXCITED AND FEEL VERY BLESSED BY THE WORK THAT'S BEEN DONE OVER THE YEARS AND THE PEOPLE INVOLVED IN THAT, WHICH INCLUDE A FORMER DEPUTY CITY MANAGER, SHANE DILLEY, AND I MENTIONED HIM JUST BECAUSE I'M NOT SURE HIS NAME WOULD COME UP OTHERWISE.

A LOT OF OTHER PEOPLE IN THE ROOM THAT DESERVE A LOT OF CREDIT FOR THIS AS WELL.

BUT IT'S JUST I CAN'T EXPRESS HOW MUCH I AM EXCITED THAT WE'RE IN A DIFFERENT PARADIGM IN HOW WE DO THIS.

IT'S LIKE, SO IS THE MATRIX FOR PRIORITY BASED BUDGETING SEVEN PRIORITIES? OR DID WE JUST HAVE THE TOP SEVEN? I MEAN, IS THAT KIND OF IS THAT WHEN WE'RE DOING PRIORITY BASED BUDGETING, IT'S LIKE WE'RE GOING TO HAVE THESE LISTS OF PRIORITIES AND WE'LL GIVE IT THE TOP SEVEN? OR DID WE JUST THE CITY JUST PICKED SEVEN, LIKE THE SEVEN IS SET.

NUMBER SEVEN IS NOT A SET NUMBER.

WE COULD CERTAINLY CHANGE THAT.

IT WAS JUST SITTING DOWN AND TRYING TO DECIDE WHAT ARE ALL THE THINGS THAT WE CARE ABOUT AS AN ORGANIZATION THAT ARE REALLY CARES ABOUT WHAT WE'RE DOING FOR THEM.

IT MADE SENSE TO MAKE IT SEVEN GENERAL PRIORITIES, THEN SOME GOALS UNDERNEATH THAT OR OBJECTIVES OR ANY OF THEM.

AND THEN MY FOLLOW UP QUESTION TO THAT IS THEN IS DOES IT MATTER? ONCE WE CONCLUDED THAT WE HAD SEVEN PRIORITIES AS A CITY AND COMMUNITY, I'M SURE THAT THEY DIDN'T ALL BREAK EQUALLY.

SO DOES IT THE MONEY DISTRIBUTION IS THAT RANKED IN THE TOP PRIORITIES ARE NOW IT'S JUST IT JUST HAS TO FIT IN TO THESE SEVEN OR ARE YOU ASKING IF SOME OF THOSE PRIORITIES FOR YOU.

YES, NOT REALLY AT THIS POINT.

THOSE ARE JUST THE GENERAL GENERAL ONES.

WE SCORE BASED ON THOSE.

BUT A PROGRAM THAT SCORES A FOUR ON.

SAFE, LIVABLE COMMUNITY WOULD NOT DO BETTER OR WORSE IN OUR OVERALL SCORING VERSUS IF WE'RE GOING TO SCORE THE FOUR ON, SAY, SUSTAINABILITY.

THOSE ARE THEY'RE ALL KIND OF TAKEN EQUALLY.

YEAH. SO IT'S NOT LIKE WE'VE ADDED BEHIND THE SCENES MORE NUMBERS THAT GREET EACH ONE OF THOSE.

WELL, THANK YOU SO MUCH.

I'LL NOTE I REMEMBER THE COUNCIL RETREAT WHEN THOSE SEVEN PRIORITIES WERE.

REFINED, FORMULATED AND REFINED.

AND IT WAS A LONG PROCESS AND COUNSEL AND STAFF GAVE A LOT OF CAREFUL THOUGHT TO THAT.

BUT AGAIN, IT'S SOMETHING THAT SHOULD BE REVISITED FROM TIME TO TIME.

AND WE THINK THE UPCOMING YEAR FISCAL.

THE NEXT FISCAL YEAR, LATE NEXT SUMMER, TO BE PRECISE, WILL BE EMBARKING UPON THAT AGAIN, CHECKING IN WITH THE COMMUNITY BECAUSE AS WE TALKED ABOUT YESTERDAY, THE COMMUNITY EVOLVES AND THE NEEDS OF THE COMMUNITY EVOLVE.

AND WHAT WE HEARD A COUPLE OF YEARS AGO MAY BE LARGELY THE SAME, BUT THERE MAY BE SOME SOME DIFFERENCES.

I JUST DIDN'T KNOW IF THERE WAS A FIX ALREADY.

PRESET. NO.

YEAH. THIS IS HOW YOU DO A PRIORITY BASED BUDGET.

YOU'RE GOING TO COME UP WITH SEVEN.

SO I THINK THERE'S AN AREA YOU WANT TO BE IN.

YOU WANT IT TO BE ENOUGH THAT IT'S ALL ENCOMPASSING, BUT NOT TOO MANY, THAT IT'S STILL DIGESTIBLE.

AND EVERY ONE OF THOSE OBJECTIVES WAS ITS OWN THING.

YOU WOULD IT WOULD START TO LOSE LOSE MEANING AT A CERTAIN POINT.

SO THAT'S A DIFFERENT NAMES TO BE GOING TO.

YEAH. GOING BACK AND FORTH.

YEAH. UNBELIEVABLE YOU SEE THAT AUDITORIUM.

SO SO SO SO THERE'S PROBABLY A RANGE OF OF THE NUMBER THAT YOU WANT TO BE IN AND SOME FALLS WITHIN THAT.

I DON'T KNOW EXACTLY WHAT WE'RE COMMITTEE IS OR WE'RE TOO FEW IS BUT THAT'LL BE UP FOR US TO DETERMINE AGAIN AS WE REVISIT THAT PROCESS.

COULD YOU SPEAK A LITTLE BIT TO, I GUESS, THE CITY DIVISIONS PROCESS WHEN IT COMES TO PRESENTING THEIR PROGRAMS? BECAUSE I'VE I'VE HAD THE OPPORTUNITY TO SIT ON OR BE PART OF THE GROUPS THAT WERE REVIEWING THESE.

[01:40:07]

AND THERE WAS A LOT OF BACK AND FORTH BOTH TIMES AMONG THE CITIZENS GROUP REVIEWING THEM, WHERE YOU WOULD SEE MAYBE IT WAS A REALLY GREAT SOUNDING PROGRAM, BUT THERE WASN'T A WHOLE LOT OF DETAIL ABOUT HOW DOES THIS ACTUALLY FIT THIS CATEGORY. THEY MIGHT SCORE THEMSELVES HIGHLY, BUT THERE WAS NO DETAIL THERE.

AND WHAT I WOULD HOPE THAT THE COMMUNITY WOULD UNDERSTAND, BECAUSE IT WAS IT WAS REALLY A LEARNING CURVE FOR US, WAS HOW MUCH WORK GOES INTO PUTTING THOSE PRESENTATIONS TOGETHER AND AND WHAT IT REALLY TAKES TO, I GUESS, KIND OF VALIDATE SOME OF THOSE PROJECTS ACROSS THESE DIFFERENT PRIORITIES THAT MAKE SENSE.

YOU KNOW, SO SO JUST TO CLARIFY, ARE YOU ASKING ABOUT HOW THE PROGRAM ITSELF IS DESCRIBED AND OR HOW IT'S SCORED AGAINST IT? IT VARIES, I GUESS, HOW THE DECISIONS GO ABOUT PRESENTING INFORMATION.

SO WE FROM WHAT I'M REMEMBERING, BEING PART OF THE REVIEW BOARD OR WHATEVER WE WERE, WE JUST WE HAD THE PROGRAM THAT LET'S JUST SAY IT WAS A FIRE DEPARTMENT.

YOU'RE LITERALLY SAYING THAT BECAUSE IT'S A PERSON BECAME MIGHT NOT THINK OF ANYTHING SPECIFIC AND IT MIGHT SAY THIS IS THE PROGRAM, THIS IS WHAT WE'RE GOING TO WE'RE GOING TO THINK SUCH AND SUCH.

AND THEN THEY HAD TO GO THROUGH FROM AGAIN, FROM OUR UNDERSTANDING, THEY HAD TO GO THROUGH AND KIND OF RANK THEMSELVES ON HOW WELL THEY FIT THESE DIFFERENT PRIORITIES. YEAH.

AND FOR SOME PROGRAMS YOU WOULD HAVE LIKE A WHOLE PAGE OF INFORMATION ON HOW TO FIT DIFFERENT CATEGORIES ON OTHERS.

THEY JUST KIND OF SCORED THEMSELVES AND IT JUST REALLY WASN'T CLEAR.

LIKE HOW DOES THIS ACTUALLY FIT PRIORITY NUMBER FOUR, IF YOUR SCORE YOURSELF DECIDE WE LIKE IT.

SO IF I THINK THIS YEAH, THE QUESTION IS WHAT THAT PROCESS REALLY LOOKS LIKE FROM THE DIVISION SIDE AND ENSURING THAT THE PEOPLE THAT ARE REVIEWING THIS UNDERSTAND WHAT THAT PROCESS IS.

SO. IT WORKED ON THAT LAST COUPLE YEARS AS THERE HAVE BEEN NEW PROGRAMS SINCE 2020.

WE HAVEN'T DONE THAT A WHOLE LOT BECAUSE THEY'VE ALREADY BEEN EXISTING.

THEY HAVEN'T HAD TO GO THROUGH THAT PROCESS AGAIN.

BUT AS AS NEW PROGRAMS HAVE BEEN BROUGHT FORTH, AND I CALL THAT I WAS NOT HERE WHEN IT WAS FIRST DONE, SO I CAN'T SPEAK AS MUCH TO WHAT WAS DONE IN 2020 JUST FOR GATHERING.

I SEE A WORKING GROUP WHO WANTS TO JUMP IN AND DO IT ANY TIME.

BUT YEAH, THE INITIAL WORK THAT ALL OUR DIVISIONS PUT IN, YOU START WITH YOUR PROGRAMS AND COSTS AND SO FORTH.

BUT THEY HAD TO TAKE EVERY PROGRAM AND RANK THEM AGAINST EACH ONE OF THOSE PRIORITIES.

AND THERE WAS A RANK FROM 1 TO 4, 1 TO 5 THAT WE DID.

SO THE DIVISIONS ALL HAD AN OPPORTUNITY TO LOOK AT THEIR PROGRAM, LOOK AT IT THROUGH THE LENS OF THE OBJECTIVES AND HOW WELL THEY ADVANCE THOSE OBJECTIVES.

WE THEN TOOK THOSE TO THOSE COMMITTEES AND HAD A CONVERSATION.

DO YOU BELIEVE WE'VE RANKED THESE RIGHTS? WHAT DO YOU THINK AS FAR AS ADJUSTMENTS? AND SOME DIVISIONS PROBABLY GAVE A LOT OF DETAILS AND OTHERS DID.

WE RECOGNIZED THAT.

BUT WE HAD A PEER REVIEW COMMITTEE TO TO VERIFY OR ADJUST HOW IT RANKS.

SO THAT TOOK A LONG PROCESS.

WE BROUGHT IN A LOT OF PEOPLE FROM COMMISSIONS TO BE ON THESE TEAMS AND HAVE THOSE CONVERSATIONS.

AND WE WENT THROUGH EACH EACH AND EVERY PROGRAM, THROUGH EVERY LENS AND ADJUSTED IF NECESSARY.

SO THAT WAS A VERY LENGTHY PROCESS.

BUT THEN YOU GET THAT BUY IN THAT IT DOES REALLY RANK WHERE IT SHOULD BE.

AND IT'S NOT JUST THESE PRIORITIES.

WE ALSO RANK THEM AGAINST BASIC PROGRAM ATTRIBUTES, WHICH ARE IS IT MANDATED MANDATORY BY FEDERAL CITY STATE LEVEL? IS IT IS IT GROWING IN OPPORTUNITIES FOR PEOPLE TO USE THE SERVICE? IS IT SOMETHING THAT IS EXPANDING? AND THOSE KIND OF THINGS.

SO IT'S A REALLY BIG LENS ON EVERY PROGRAM THAT WE LOOK AT.

DOES THAT HELP? YEAH.

I JUST IT'S A REALLY INTERESTING PROCESS AND IT'S REALLY I THINK IT'S A LOT MORE COMPLICATED THAN IT GETS CREDIT FOR WHEN IT COMES TO GOING THROUGH THAT REVIEW PROCESS. BECAUSE, I MEAN, YOU'RE REALLY YOU'RE DIGGING INTO A LOT OF DIFFERENT THINGS AND WEIGH THEM AGAINST EACH OTHER TO TO TRY AND FIGURE OUT WHERE EACH OF THESE THINGS RANK. AND I THINK IT'S REALLY SOMETHING THAT SORT OF WHAT VICE MAYOR WAS SAYING.

[01:45:03]

IT'S NOT ONLY AN IMPRESSIVE THING AND AN HONOR FOR US TO BE ADOPTING SOMETHING LIKE THIS, BUT IT'S ALSO REALLY A HUMBLING EXPERIENCE TO BE PART OF THAT CITIZEN REVIEW GROUP WHO'S LOOKING AT AND SHAPING THE FUTURE OF OUR CITY BY TAKING THAT REALLY CLOSE LOOK AT THESE DIFFERENT PROGRAMS AND EXPRESSING THAT ON BEHALF.

SO I THINK IT'S JUST REALLY AN IMPORTANT THING FOR FOLKS TO UNDERSTAND HOW MUCH GOES INTO THAT.

AND WHEN WE UPDATE THE PRIORITIES OBJECTIVE HERE, WE'LL GO BACK IN RANK AGAINST THOSE NEW OBJECTIVES.

RIGHT. SO WE'RE GOING TO HAVE THAT OPPORTUNITY IN ON THE RANKING, TOO.

WE HAD A CONSULTANT WHO WE'VE BEEN WORKING WITH A LOT ON THIS.

HE CAME IN MANY TIMES, HE AND HIS TEAM, TO TRAIN OUR EMPLOYEES HOW TO RANK THEM.

SO THERE WAS OBJECTIVE TRAINING AS WELL.

ONE THING TO MENTION, THE CITY IS PRETTY BIG, BOTH IN TERMS OF OUR BUDGET AND INDIVIDUALS THAT WORK ON JUST THIS PROGRAM. BEFORE THIS LAST, THIS CURRENT YEAR WE'RE IN RIGHT NOW AND IN THE FALL, I WENT BACK AND CLEANED OUT OUR SYSTEM TO MAKE SURE THAT ALL USERS WERE ASSIGNED PROPERLY AND THEN WHEN THEY LEFT, THE ORGANIZATION WAS GONE.

AND I WAS THINKING THAT WOULD PARE DOWN HOW MANY PEOPLE WERE IN THE SYSTEM WORKING WITH THIS QUITE A BIT.

BUT WE STILL ENDED UP HAVING ABOUT 110 OR 15 ACTIVE USERS.

SO YES, THERE ARE DIFFERENT PEOPLE THAT HAVE DIFFERENT WRITING STYLES OR THAT WORK IN DIFFERENT DIVISIONS ARE GOING TO SUBMIT DIFFERENT.

DIFFERENT LENGTHS OF DESCRIPTIONS OF WHAT THEY DO IN DIFFERENT KINDS OF WORDS.

SO THERE IS A LEVEL OF VARIANCE THERE.

BUT WE'RE TRYING, AS WE GO THROUGH EVERY YEAR, TO REALLY TAKE A STEP IN TO WORK WITH ALL THE DIVISIONS AND MAKE SURE THAT WE GET TO A LEVEL OF CONSISTENCY ACROSS THE ORGANIZATION SO THAT PROGRAMS ARE WRITTEN IN SIMILAR WAYS AND THAT KIND OF TRYING TO ACCOMPLISH THE SAME THING WHEN THEY'RE CREATING THEIR PROGRAMS. COSTUMES ON STAFF, OF COURSE, THE CITY MANAGER.

I THINK WE'VE ESTABLISHED THAT THIS IS A LOT OF WORK.

YEAH. MY QUESTION IS, DOES IT REALLY HELP YOU DECIDE DOLLAR AMOUNTS AGAINST VARIOUS CATEGORIES OR PROGRAMS? YEAH, I THINK IT DOES.

I THINK IT REALLY INFORMS THE DISCUSSION.

THE BUDGET TEAM YOU WERE INTRODUCED TO EARLIER TODAY, WE LOOK AT THIS VERY CAREFULLY AND WHEN THE DIVISIONS PRESENT TO US AND HEIDI WALKED US THROUGH HOW THAT WILL TAKE MANY DAYS. RIGHT.

THEY'RE UTILIZING THIS TOOL.

SO IT IS A FOUNDATION UPON WHICH A LOT OF DECISIONS ARE MADE.

WHAT I'M READING INTO YOUR QUESTION, TOO, IS, IS IT PAYING FOR ITSELF? IS IT WORTH THE EFFORT GOING INTO IT? TIME WILL TELL. BUT I THINK WE WOULD ALL HOPEFULLY AGREE THAT CONVENTIONAL BUDGETING METHODS MAY BE A LITTLE BIT OUTDATED, ESPECIALLY IN COMMUNITIES LIKE FLAGSTAFF, WHERE OUR CITIZENS WANT MORE TRANSPARENCY, THEY WANT MORE ALIGNMENT WITH WITH WHAT WHERE THE PRIORITIES LIE.

AND THAT'S WHAT THIS IS.

SO EVEN IF IT DOESN'T PAY BIG DIVIDENDS OVER TIME, FINANCIALLY, IT IS MAKING A BUDGET PROCESS WHICH TRADITIONALLY IS NOT.

A SEXY PROJECT. THE PROCESS IS NOT SOMETHING THAT CATCHES THE PUBLIC'S ATTENTION, BUT THIS IS SOMETHING WHERE WE CAN REALLY ROLL OUT HOW THAT ALIGNMENT DOES OCCUR AND HOW WE'RE FOLLOWING THE COMMUNITY'S PRIORITIES.

SO IF YOU SAY IT'S USEFUL, I'LL TAKE YOUR WORD.

I'M SAYING THERE'S GREAT VALUE TO IT.

YEAH. ALL RIGHT.

CAN I GO ON FOR ONE MORE MINUTE? NO, I NEED IT. YEAH.

YOU COME BACK TOMORROW.

THERE YOU GO. IF THERE ARE ANY OTHER QUESTIONS NOW, WHAT I'LL SAY IS THAT IF YOU HAVE ANY LATER ON, PLEASE FEEL FREE TO REACH OUT TO ME.

SEND ME AN EMAIL.

I'M HAPPY TO WALK THROUGH ANY PART OF THE PROCESS YOU HAVE QUESTIONS ABOUT OR TO ANSWER ANY QUESTIONS YOU HAVE ABOUT THE WAY THIS WORKS THAT THEY WANT TO DO OUTSIDE OF THIS.

SO THE LAST THING I'LL SAY IS I PROBABLY SHOULD GO TRY IT.

YEAH, I THINK I DID A COUPLE OF YEARS AGO, BUT I SHOULD TRY IT AGAIN TO REFRESH MYSELF.

I CERTAINLY PLAY AROUND IN THAT PUBLIC FACING TOOL.

IT'S GOOD FOR COMMUNITY, BUT IT'S ALSO GOOD FOR US AND THE ORGANIZATION TO SEE THINGS.

WE DO A LOT OF THINGS AND IT'S HARD TO GRASP.

ONCE I HAVE A SHOUT OUT TO SHANE EARLIER, I ALSO WANTED TO MENTION BARBARA GOODRICH IN THE SAME.

BUT SHE WAS INSTRUMENTAL IN GETTING THIS OFF THE GROUND BEFORE I GOT HERE.

SO A LOT OF THINGS WRONG.

YEAH. THANKS FOR THOSE.

AND THERE'S MORE, TOO.

IF ANYONE ELSE WANTS TO ADD SOME NAMES TO THE LIST.

THANKS, CHRIS. THANK YOU.

[01:50:01]

DROP NAMES. BUT DON'T FORGET ANYBODY.

I KNOW THERE WAS DEFINITELY A POOR TEAM.

I THINK SARAH LANGLEY AND JACK PRIDGETT AND, WELL, SOME OTHERS THAT MAINTAIN KIND OF DAIRY BERRIES HAS ALWAYS BEEN FRONT AND CENTER ON THIS SIDE. NOW WE HAVE [INAUDIBLE] ALSO IN THAT CORE TEAM AND DEVELOPING THIS YEAR AFTER YEAR.

IT'S A GOOD EFFORT.

GOOD TEAM. THANK YOU.

ALL RIGHT. GLAD YOU CAME BACK ON SATURDAY TO HAVE ANOTHER CONVERSATION.

THE SECTION IS ENTITLED REVENUE UPDATE.

WE'RE NOT GOING TO GET A LOT INTO PROJECTING AND FUTURE FORECASTS DURING THIS PRESENTATION.

YOU'LL SEE A LOT MORE DEEP DIVE ON THOSE TWO WEEKS, JUST LESS THAN TWO WEEKS WHEN WE'LL BE BACK IN FRONT OF YOU.

SO I'M GOING TO KIND OF TALK ABOUT BIG PICTURE STUFF AT THIS RETREAT AND THINGS THAT WE'RE ORGANIZATIONS LOOKING AT FROM OUR REVENUE SIDE. THE FIRST THING IS RECESSION CONSIDERATIONS.

THIS IS ALWAYS SOMETHING WE WANT TO KEEP OUR EAR OUT FOR.

SEE WHAT'S HAPPENING IN THE ENVIRONMENT AND THE STATES AND OUR COUNTRY AND SO FORTH.

RECESSIONS HAPPEN.

IT'S A CYCLICAL THING.

THERE'S EXPANSION AND CONSTRUCTION THAT HAPPENS OVER TIME.

AND GENERALLY, A RULE OF THUMB IS EVERY SEVEN YEARS WE TEND TO SEE A RECESSION OCCUR.

SO IT'S CRITICAL TO BE PLANNING FOR THOSE FUTURES AND MAKING SURE YOU HAVE THE RESOURCES ALIGNED PROPERLY FOR THOSE TIMES THAT WE MAY HAVE DOWNTURNS.

AN AVERAGE RECESSION LASTS AND I CORRECTED A NUMBER HERE.

IT'S ACTUALLY TEN MONTH IS THE AVERAGE LENGTH OF A RECESSION.

GOING BACK TO THE GREAT RECESSION, THAT WAS 18 MONTHS.

THAT WAS A VERY LONG ONE OR THE COVID RECESSION.

THAT WAS TWO MONTHS. IT WAS A VERY SHORT, HARD RECESSION, BUT IT WAS SHORT LIVED.

SO IT VARIES IN LENGTH, IN TIME, BUT YOU WANT TO MAKE SURE YOU WANT TO WEATHER THOSE STORMS. GENERALLY AFTER RECESSION, IT TAKES A WHILE TO EXPAND AND GET BACK TO THE SAME LEVELS THAT YOU MAY WANT TO HAVE IN YOUR REVENUES.

SO THAT EXTRACTION EXPANSION PERIOD, EIGHT YEARS, AGAIN, EXPAND CONTRACT.

IT'S JUST SICK. IT WILL GROW THAT.

SO WHEN WE. WHEN YOU THINK ABOUT RECESSIONS AND WE'RE DOING OUR REVENUE ESTIMATES, WE WANT TO MAKE SURE WE'RE BUILDING IN THOSE INTO OUR PROJECTIONS.

SINCE SINCE OUR INITIAL GREAT RECESSION, WE MAY NOT HAVE BEEN AS GOOD AS SAY, OKAY, THIS IS GOING TO HAVE A DOWNTURN HERE.

WE'RE GOING TO HAVE A DOWNTURN. AND IT MAY HAVE CAUGHT US A LITTLE BIT.

AND HAVING THOSE LARGE DIPS AND REVENUES IMPACTED US AS AN ORGANIZATION, AS A COMMUNITY, FOR SURE.

SO WE WANT TO MAKE SURE OUR REVENUES ARE ALIGNED AND ACHIEVABLE AS WELL AS PREPARED FOR DOWNTURNS.

BUT WE'LL TALK ABOUT WHAT'S IN OUR PLANS IN A COUPLE OF WEEKS.

BUT I AM PREPARED FOR A RECESSION NEXT FISCAL YEAR.

IT TENDS TO BE A SMALL ONE IS WHAT THEY'RE SAYING.

WE'LL TALK A LITTLE BIT MORE ABOUT THAT.

AND THEN SEVEN YEARS OUT.

SO THE NEXT RECESSION BUILT IN PROJECTIONS.

IT'S NOT A GUARANTEE. IT COULD OCCUR EARLIER IS 26-27.

SO WE'RE MODERATE. WE WANT TO MAKE SURE THAT TREND LINE IS WHAT WE CAN ACHIEVE WITH RESOURCES.

SO I'VE BEEN LISTENING TO A LOT OF ECONOMISTS AND GOING TO WEBINARS AND SO FORTH.

I'VE GONE TO THE UNIVERSITY OF ARIZONA, ELLER COLLEGE MANAGEMENT.

THEY DO A GREAT ECONOMIC FORECAST AND WEBINAR ALSO BEEN LISTENED TO S&P STANDARDS AND POOR, WHICH THE RATING COMPANIES WILL SWITCH RATING TO HEAR WHAT THEY'RE THINKING IS COMING DOWN THE PIKE.

AND THE JOINT LEGISLATIVE BUDGET COMMITTEE IS ONE THAT KIND OF ADVISES THE STATE LEGISLATURE AS FAR AS REVENUE, RESOURCES AND THE FINANCE COMMITTEE LISTENING TO WHAT THEY'RE SAYING, WHAT'S COMING UP.

SO I DEFINITELY THINK HEARING WHAT'S GOING ON AND I'M JUST TRYING TO PULL TOGETHER SOME SOME HIGH LEVEL PERSPECTIVES THAT HAS BEEN KIND OF CONSISTENT THROUGH THESE THESE DIFFERENT PRESENTATIONS.

THEY'RE REALLY ALL OF THEM HAVE TALKED ABOUT.

IT'S THERE'S GOING TO BE THEY REALLY FEEL THERE'S GONNA BE A RECESSION, BUT IT'S GOING TO BE MILD.

IT'S NOT GOING TO BE THE GREAT RECESSION.

IT'S NOT GOING TO BE A QUICK DIP.

[01:55:01]

AND COVID WAS SO SHALLOW, A MILD RECESSION, AND THEN COMING OUT, WE'RE GOING TO SLOW DOWN IN OUR GROWTH COMING OUT OF THAT, THE FUTURE RECESSIONS, SHOULD WE HAVE ONE.

AND THE POSITIVES THAT THEY SAY TO WHY THEY DON'T EXPECT IT TO BE SO DEEP OR SO LONG IS BECAUSE OF WHERE WE ARE IN A NATION OF STATE AND LOCAL GOVERNMENT.

UM, THE POSITIVES ARE WE HAVE STRONG BALANCE SHEETS.

THERE'S BEEN A LOT OF FEDERAL FUNDING THAT HELPED.

WE TALKED ABOUT ARPA EARLIER, HELPED US STRENGTHEN OUR BALANCE SHEETS.

BUT WE'VE BEEN A LITTLE CONSERVATIVE, MAYBE ON PROJECTIONS BECAUSE WE COMING OUT OF COVID, WE WEREN'T SURE WHERE WE WERE GOING.

SO WE'VE BEEN VERY CAUTIOUS AND BUILDING UP OUR RESERVES.

AND THIS IS A TREND ACROSS THE NATION.

A LOT OF AGENCIES HAVE STRONG FUND BALANCES.

ALL THE SUPPLY CHAINS ARE IMPROVING.

THIS IS ONE OF THE THINGS THAT KIND OF HELD BACK AND CREATED REFLECT INFLATION, SO FORTH.

SUPPLIES WERE NOT THERE.

SO THAT CREATES A LITTLE BIT INFLATION.

THEY'RE SEEING POSITIVE MOVEMENT ON SUPPLY CHAINS.

SO THAT'S A VALUE.

SO EVEN IN A RECESSION, IF YOUR SUPPLY CHAINS ARE PROVEN, THAT'S A POSITIVE TO HELP YOU BUILD UP A STRONG LABOR MARKET.

IT IS A VERY LOW UNEMPLOYMENT RATE THAT WE'RE AT RIGHT NOW.

SO THEY REALLY FEEL THAT THE LABOR MARKET IS STRONG AND TIGHT AND IN A MILD RECESSION PERIOD, THEY'RE NOT PROJECTING A LOT OF LAYOFFS BECAUSE OF THE FUND BALANCE RESERVES THAT CAN HELP US GET THROUGH THOSE PROCESSES AND BECAUSE PEOPLE ARE LOOKING FOR JOBS AND WE'LL BE ABLE TO MODERATE LOSS AND WAGES IN THE LABOR MARKET GOING FORWARD.

SO SOME OF THE NEGATIVE SIGHTS AND THINGS TO WATCH OUT FOR IS WE ARE GOOD FOR ONE TIME MONEY AND SPENDING.

THEY HAVE THESE BALANCES PRESERVED AND BROUGHT UP, BUT YOU MAY BE MORE CAUTIOUS ABOUT ONGOING NEW PROGRAMS, INCREASED COSTS IN YOUR BUDGETS COMING UP BECAUSE YOU WANT TO START PREPARING.

YOU DON'T WANT TO START GROWING TOO MUCH IN YOUR ONGOING RESOURCES.

INTEREST RATES AND INFLATION, THEY'RE STILL MOVING.

THE INTEREST RATES ARE EXPECTED TO PROBABLY HIT FIVE 5% IN THE COMING MONTHS.

AND INFLATION. WE HAD 7% LAST YEAR ON AN AVERAGE.

THOSE DO LOOK LIKE THEY'RE COMING DOWN.

BUT WE'LL SEE.

AND INTEREST RATES IS ONE OF THOSE TOOLS THAT THE TREASURER WILL HAVE IF WE HIT A RECESSION.

THEY PROBABLY EASE UP ON THAT RATE CLIMB THAT WE'VE BEEN GOING THROUGH, POSSIBLY REDUCE THEM.

OUR PROJECTIONS ARE IN TWO YEARS WE'LL BE BACK DOWN TO MAYBE THREE AND A HALF PERCENT OR 3% AS FAR AS INTEREST RATES THAT THE FEDERAL GOVERNMENT IS TRYING TO MANAGE. SO THEY'VE GOT THAT IN THEIR TOOLBOX.

BUT WITH INTEREST RATES, INFLATION, THE SPENDING POWER IS LESS.

AND THAT'S WHERE THE NEGATIVE PART IS.

THE CONSUMERS DON'T HAVE THE SPENDING POWER TO BUY GOODS AND SERVICE.

IT'S HAD AN IMPACT ON OUR CAPITAL PROJECTS, OBVIOUSLY COSTS AND CONSTRUCTION.

SO THOSE ARE THOSE NEGATIVE THINGS THAT ARE WEIGHING DOWN ON OUR ECONOMY.

WAGE GROWTH IS ANOTHER ONE.

IT'S WAGE GROWTH HAS BEEN EXPANDING PRETTY FAST ACROSS THE COUNTRY.

BUT AS FAR AS A MUNICIPALITY AND GOVERNMENT WISE, WE'RE NOT AS NIMBLE AS FAST TO MOVE WITH WAGES LIKE THE REST.

SO THAT'S A KIND OF A NEGATIVE IMPACT TO US AS A COMMUNITY.

AND WE'RE GOING TO TALK ABOUT COMPENSATION AND EMPLOYEE BENEFITS AND SO FORTH HERE IN A LITTLE WHILE.

SO THAT'S ONE OF THE THINGS WE WANT TO FOCUS ON TO HELP US OFFSET THOSE NEGATIVE IMPACTS TO OUR COMMUNITY, OUR CITY, IN OUR OUTLOOK.

AND THEN LESS RESOURCES FOR ONGOING PROGRAMS IS A CONSIDERATION.

OKAY. SOME THINGS WE'RE ALSO WATCHING AS WE GO THROUGH THIS.

INDICATORS THAT WE HAVE OUT THERE, CONSUMER SPENDING, THEY WATCH THIS MONTH AFTER MONTH.

HOW MUCH IS CONSUMER SPENDING CHANGE? THEY'VE SAID THERE'S BEEN ABOUT A 1% DECLINE OVER THE LAST TWO MONTHS.

SO WE ARE SEEING THAT THE SLOWDOWN HAS HAPPENED.

IT STARTED TO OCCUR FROM A SPENDER SIDE.

THERE'S ACTIVITIES SUCH AS BUILDING PERMIT ACTIVITIES THAT WILL WANT TO LOOK AT OUR PERMITS STILL BEING BUILT OR PULLED, PEOPLE LOOKING TO STILL CONSTRUCT THINGS WITH HIGH INTEREST RATES.

THEY MAY BE SLOWING DOWN.

ONE OF THE THINGS WE LOOK AT IS LANDFILL ACTIVITY.

IS THERE A LOT OF COMMERCIAL ACTIVITY BRINGING WASTE AND STUFF TO THE LANDFILL WHEN IT'S HIGHER?

[02:00:02]

HEY, THINGS ARE RUNNING GOOD, BUT WHEN IT STARTS TO SLOW DOWN, YOU PRODUCTS ARE SLOWING DOWN AND SALES TOURISM ACTIVITY, THAT BECOMES ONE OF THOSE.

BABY NOT REQUIRES SPENDING.

PEOPLE HAVE IT'S A NICE TO HAVE AND YOU MAY HAVE TO STEP BACK ON YOUR TOURISM, YOUR ACTIVITY, VISITATIONS AND SO FORTH.

THESE ARE THOSE KIND OF THINGS THAT WE AS A ORGANIZATION KIND OF LOOK AT.

WE'RE LOOKING AT OUR ECONOMIC CONCERNS.

THIS CHART I JUST WANTED TO PUT IN HERE JUST AS A..

THAT IS SO YOU RICK.

LOOK AT THOSE NUMBERS.

SO THIS IS OUR GENERAL FUND SALES TAX.

THE 1% SALES TAX THAT WE TAX IN OUR COMMUNITIES.

AND THIS GOES BACK TO THE 2000S FISCAL YEAR 2000.

AND IT'S KIND OF SHOWING YOU HOW REVENUES GET IMPACTED OVER RECESSIONARY PERIODS AND OTHER EVENTS.

SO WE HAD A RECESSIONARY PERIOD.

THE DOT.COM ERA WAS A RECESSION, THE GREAT RECESSION, WE ALL RECALL.

AND OF COURSE, THE COVID RECESSION WAS KIND OF A SHORTER AREA.

AND THIS SHOWS HOW YEAR OVER YEAR, OUR GENERAL FUND SALES TAX HAVE COMPARED YEAR OVER YEAR SEEING THE VOLATILITY THAT YOU MAY SEE AS YOU GET CLOSER TO A SET PERIOD.

THIS BLUE LINE IS OUR ACTUAL REVENUES AS YOU GO THROUGH.

BUT BY THE MILLIONS HERE, HOW WE SEE OUR REVENUES AND HOW THEY REACT THROUGH RECESSIONARY PERIODS.

SO THIS WAS THE BIG ONE LEADING INTO THE GREAT RECESSION.

WE ACTUALLY STARTED TO SEE SOME DECLINES IN REVENUES.

WE HAD GREAT GROWTH BEFORE, BUT THEN ALL OF A SUDDEN, OKAY, WE'RE DROPPING AND THIS IS WHERE IT WAS A MULTIYEAR IMPACT.

BIG IMPACT.

OUR REVENUES TOOK A WHILE TO COME BACK.

IT WAS ABOUT FOUR YEARS BEFORE WE GOT TO PRE-RECESSION AREAS.

SO PLANNING FOR THESE, HOW DO YOU FILL THAT GAP IN YOUR FINANCIAL PLANNING IS REALLY IMPORTANT.

BEFORE COVID.

THIS IS WHERE WE TALKED ABOUT WE HAD THE CONVERSATION ON BUILDING A RECESSION PLAN.

WE'RE LIKE, WAIT A MINUTE.

LOOK WHAT WE'RE SEEING IN OUR SALES TAX.

WE ACTUALLY STARTED SEEING THE CLIENT AND ACTUALLY BEFORE THE RECESSION.

THEY STARTED TO REGROW.

THEY STARTED TO COME BACK AND THEN COVID HIT.

BUT BUT THIS IS WHAT WE WERE WATCHING.

AND WE ARE SO WE WERE PHYSICALLY MORE CONSERVATIVE WHEN COVID HIT, WHICH WAS A BENEFIT TO US.

AND THEN WE HAD A RECESSION PLAN IN PLACE ALSO.

BUT HERE YOU CAN SEE WE'VE HAD AMAZING GROWTH THE NEXT TWO YEARS AFTER COVID.

AND LARGE GROWTH USUALLY MEANS WE'RE GOING TO SEE SOME CORRECTIONS AND SLOWING DOWN LIKE WE DID BACK HERE AND LIKE WE DID IN THIS RACE. SO THAT'S ONE OF THOSE JUST THOSE CHARTS I LIKE TO KEEP AN EYE ON AND THINK ABOUT HOW DO YOU FILL THIS GAP AS WE.

WANT TO KEEP GOING THIS WAY. HOW DO YOU FILL THESE GAPS IN YOUR FORECASTING? SO OVER THE NEXT COUPLE OF SLIDES, I'M GOING TO GIVE YOU KIND OF AN UPDATE OF WHERE WE ENDED LAST FISCAL YEAR.

I'M STILL WORKING ON THOSE PROJECTIONS.

I'M WATCHING REVENUES MONTHLY, BUT I'M NOT READY TO UNVEIL THAT HERE TODAY.

I WANT TO GIVE YOU A PICTURE OF WHAT OUR COMMUNITY WAS DOING IN THE LAST YEAR OR SO.

HERE YOU SEE A THREE YEAR HISTORY OF OUR GENERAL SALES TAX, WHICH IS ALSO WHAT WE'VE TALKED ABOUT IN THE PREVIOUS PAGE.

THIS IS THE 1% WE PAY TRANSACTION TAX OR SALES TAX IN OUR COMMUNITY.

SO IN 20.

GO BACK OVER HERE.

CAN'T STAND. WE HAVE TOO MUCH.

SO HERE YOU CAN SEE THE FISCAL YEAR 2020, 1920.

YOU CAN SEE WE DIDN'T BEAT OUR PROJECTIONS.

THAT WAS THE YEAR OF COVID.

WE WERE ACTUALLY ON PACE TO BEAT THE BUDGET AT THAT TIME.

BUT THAT THIRD QUARTER OF FISCAL YEAR 20, IT WAS A MAJOR SHUTDOWN THAT WE SAW.

OUR FOURTH QUARTER REVENUES, OUR HOTELS DECLINED 62% IN ONE QUARTER FOR OUR SALES TAX REVENUE, RESTAURANTS 31%, PERSONAL RENTAL PROPERTY 22%, THAT'S YOUR RENTAL VEHICLES AND THOSE TYPES OF THINGS.

CERTAIN CATEGORIES THAT GOT HIT VERY HARD, THIS ALMOST FLAT LINE, YOU KNOW, GOING OUT TO THEATERS AND SO FORTH.

[02:05:02]

BUT YOU CAN SEE WE DIDN'T END TOO BAD COMPARED TO BUDGET THE PROJECTION BECAUSE WE WE PREPARED WE SAW SOME DECLINES COMING.

SO IN 2020-21, IN THE COVID PERIOD, WE'RE LIKE, WELL, LET'S KEEP THE REVENUES FLAT.

WE JUST WEREN'T WE JUST WEREN'T CERTAIN AT THE TIME.

WHAT IS COVID REALLY GOING TO MEAN TO NEXT YEAR'S REVENUE? SO WE WE BUDGET A FLAT REVENUE PROCESS.

BUT DUE TO INFLUX OF FUNDING FROM THE FEDERAL GOVERNMENT THROUGH STIMULUS PACKAGES AND SO FORTH AND JUST THE ACTIVITY IN OUR COMMUNITY, WE DID SOME GREAT REBOUNDING IN 2020, 2021.

OUR THE BIGGER REBOUNDS WERE IN OUR RETAIL SALES TAX, HAD ABOUT A $2.5 MILLION INCREASE YEAR OVER YEAR.

WE'RE TALKING ABOUT THESE TWO NUMBERS OF CONSTRUCTION CONTRACTING AND USE TAX HAD ABOUT $1,000,000 IN NEW REVENUES CONSTRUCTION CONTRACT AND JUST KEPT KEPT GOING.

PEOPLE KEPT BUILDING JUST AFTER THE COVID RECESSION.

AND OF COURSE, HOTELS AND HOTELS, RESTAURANTS, THEY STARTED TO REBOUND AND GET THERE.

SO OVER BUDGET, WE'RE ABOUT 4 MILLION.

BUT AS WE UPDATE OUR PROJECTIONS, THAT YEAR IS ABOUT 2 MILLION OVER WHAT WE PROJECTED.

AND THEN COMING INTO THE LAST FISCAL YEAR.

SO THIS IS WHERE WE ARE.

LAST FISCAL YEAR, WE'RE STILL A LITTLE CONSERVATIVE, MAYBE ON OUR BUDGETED REVENUES, AND WE BEAT THOSE PROJECTIONS PRETTY WELL.

OF. SOME OF THE LARGER AREA OF GROWTH IN THE LAST FISCAL YEAR WERE AMUSEMENTS 107%.

THAT'S THE MOVIE THEATERS, GETTING BACK THE ORPHEUM, GETTING BACK TO HAVING ADVANCE HOTELS HAD A 30% GAIN YEAR OVER YEAR.

YOU COULD SEE THAT TOURISM CAME BACK FROM ALL THAT WORK.

RETAIL HAD ANOTHER SIGNIFICANT GROWTH OF ABOUT 10% AT 1.2 MILLION OVER BUDGET OVER PRIOR YEAR PRIOR NUMBERS. SO OVERALL WE ENDED 5 MILLION BUDGET.

BUT WHEN WE CAME TO COUNCIL LAST APRIL, WE KNEW REVENUES WERE BETTER AND WE BROUGHT PROJECTIONS IN AND WE STILL EXCEEDED THOSE PROJECTIONS THAT WE PROVIDED LAST APRIL BY ABOUT $2.3 MILLION.

SO THAT'S A RESERVE NOW THAT WE HAVE IN OUR FUND BALANCE TO SPEND.

AND THIS IS WHERE WE TALK ABOUT CASH BALANCE.

THAT'S MORE OF A ONE TIME RESOURCE THAT WE'LL BE LOOKING TO ALLOCATE WITH OUR DECISIONS THIS YEAR.

SO SALES TAX HAS BEEN DOING GREAT.

THE OTHER ONE I WANTED TO TALK ABOUT WAS OUR DISTINCT SHARED REVENUES.

ALL THESE HAVE ALSO BEEN DOING VERY STRONG AT THE STATE LEVEL.

WE FARED VERY WELL.

THIS WAS THE PANDEMIC YEAR COMPARED TO BUDGET.

WE ACTUALLY PREPARED VERY WELL.

AGAIN, WE HAD A GREAT BEGINNING OF FISCAL YEAR 2020.

IT JUST FELT IN THAT LAST QUARTER OF 2020.

THAT WAS IT WAS GOOD TO HEAR THAT WE MET THOSE PROJECTIONS THE NEXT YEAR.

BEING CONSERVATIVE, WE KIND OF WANT TO BE CAUTIOUS WITH COVID AND UNDERSTANDING THE REVENUE IMPACTS.

BUT STILL, THEY CONTINUE TO GROW.

STATE REVENUES CONTINUE TO GROW.

OUR OUR OUR COMMUNITIES OPENED UP TO RETAIL, HOTELS, RESTAURANTS.

WE GOT BACK TO BUSINESS.

AND REVENUES CONTINUE TO INCREASE OVER BUDGET AND OVER YEAR TO YEAR, LITTLE OVER 3 MILLION IN ONE YEAR.

AND THEN 2022 JUST CONTINUE TO MOVE FORWARD, GROW, EXPAND.

AND AS WE GET TO AS WE GOT TO THE END OF THE LAST FISCAL YEAR, WE'RE ABOUT THREE AND A HALF MILLION DOLLARS OVER WHAT WE'VE BUDGETED.

BUT AGAIN, LAST APRIL WE CAME TO COUNCIL, WE REVISED THE PROJECTIONS RUNNING INTO YEAR END AND WE'RE JUST UNDER $1,000,000 OVER WHAT OUR APRIL PROJECTIONS WERE.

WE'RE A LITTLE BIT CLOSER THERE THAN SALES TAX.

BUT AGAIN, HERE'S HERE'S A RESOURCE THAT WE HAVE NOW AS A COMMUNITY TO INVEST.

I KNOW, I KNOW.

YOU PROBABLY WONDER ABOUT THE URBAN REVENUE, THE INCOME TAX CONVERSATION, AND SAY, I'LL HAVE MORE INFORMATION.

TALK ABOUT THAT AT THE NEXT RETREAT BECAUSE IT IS CONVERSATION ABOUT CHANGING TAXES AND SO FORTH.

WE DO CURRENTLY HAVE THE LATEST LAST YEAR OR YEAR BEFORE REDUCTION IN INCOME TAX

[02:10:05]

BUILT INTO OUR MODELS.

BUT NOW THEY'RE TALKING MORE AND WE'LL HAVE THAT CONVERSATION.

SO I THOUGHT IT WOULD ALSO BE IMPORTANT TO BRING A SNAPSHOT ON OUR PHONES TO YOU FOR THIS KIND OF THIS UPDATE OF WHERE WE ARE AND WHAT WE SEE.

AND THIS IS ONE THAT KIND OF HELPS YOU UNDERSTAND THE IMPACTS OF RECESSIONS ALSO.

RIGHT. TALKED ABOUT THE GENERAL FUND REVENUES GOING UP AND DOWN, BUT THE BP FUND IS ONE OF THE HARDER HIT ONES DURING RECESSION REPAIRS.

BUT THOSE DISCRETIONARY SPENDING ON HOTELS AND GOING OUT TO EAT, THEY KIND OF GET PULLED BACK.

SO HERE WE WE DEFINITELY SAW A IMPACT TO CVB TAXES.

I TALKED A LITTLE BIT AGO ABOUT HOTELS DECLINING 62% IN ONE QUARTER AND RESTAURANTS 31%.

BUT THIS IS WHERE RECESSION CLASS SAID LET'S PUT SOME INVESTMENTS INTO TOURISM.

LET'S INVEST LESS, GET OUT IN THE COMMUNITY.

LET'S PROMOTE FLAGSTAFF AS A SAFE PLACE TO COME TO THINKING ABOUT MASKING UP AND SO FORTH.

AND WE BUILT THOSE INTO OUR TOURISM MODELS, AND I THINK IT REALLY PAID OFF IN THE LONG RUN AND IT HELPED THE BP FUNDS REBOUND FAST.

I THINK IT'S DOING GREAT.

THIS BEEBE TAX HELPS FOR TOURISM, ARTS OF SCIENCE, BEAUTIFICATION, ECONOMIC DEVELOPMENT AND RECREATION.

SO NOT ONLY DID WE GET BACK UP TO A GOOD PROJECTION LAST FISCAL YEAR, WE TRUST IN THOSE AREAS OF RESTAURANTS, HOTELS, BARS AND SO FORTH, AND NOT ONLY HELP AT LEAST KIND OF THINGS DON'T JUST HELP BBB TAXES, ACTUALLY HELPS OUR GENERAL FUND BECAUSE IT'S ONE OF THOSE CATEGORIES, RESTAURANTS.

BARS, HOTELS, MOTELS MAKE UP ABOUT 20% OF THE JUMP ON SALES TAX, TOO.

SO IT'S CRITICAL THAT WE KEEP THESE IN SYNC.

AND THE BENEFITS FROM HERE, THE INVESTMENTS WE MAKE, BENEFITS THE GENERAL FUND AND BENEFITS THE COUNTY AND THEIR TAX COLLECTION.

IT BENEFITS TRANSPORTATION TAXES, BECAUSE THESE ARE ALSO ITEMS IN TRANSPORTATION TAXES.

SO YOU CAN SEE HOW UNDERSTANDING THIS INDUSTRY IS VERY IMPORTANT FOR OUR COMMUNITY.

SO KUDOS TO THE DISCOVER FLAGSTAFF STAFF.

THEY REALLY WENT AT IT.

THEY REALLY WANTED TO PROMOTE US AND THEY DID A GREAT JOB DURING THIS PANDEMIC PROCESS.

AND I THOUGHT THIS WOULD BE A GREAT CHART TO SHOW THE IMPACT TO THE LODGING INDUSTRY.

THESE ARE METRICS THAT THEIR TEAM REVIEWS.

THEY TRACK THEM WITH THE HOTELIERS TO SEE HOW HOW THEY'RE FARING IN THEIR COMMUNITY.

BUT HERE'S THOSE TWO RECESSIONS THAT I HAD ON THE PREVIOUS SLIDE.

YOU CAN SEE THAT THIS INDUSTRY IS ONE OF THOSE WHERE DISCRETIONARY SPENDING IS ONE OF THOSE THINGS THAT PULL BACK.

AND SO THAT'S WHY YOU WATCH THAT AS A METRIC IN YOUR ECONOMIC PLANNING.

SO YOU SEE THAT IT TOOK A WHILE FOR THOSE TO COME BACK OVER TIME.

AND, OF COURSE, THE QUICK DIP FOR COVID.

BUT LOOK AT THAT REBOUND.

WE GOT BACK ON A PATH AND ABOVE PATH AS FAR AS OUR AVERAGE DAILY RATES.

SO IF GO THROUGH THIS AGAIN, THE BLUE LINE IS THE OCCUPATIONAL OCCUPANCY PERCENTAGE.

SO YOU CAN SEE LESS PEOPLE COME INTO FLAGSTAFF.

IT WAS KIND OF FLAT FOR SEVERAL YEARS.

AND WE STARTED TO TAKE SOME MOMENTUM AND THEN WE HIT THAT BIG DIP.

AVERAGE DAILY RATE IS HOW MUCH THEY'RE CHARGING FOR A HOTEL ROOM AS THEY HIT THE PANDEMIC.

AND THEY DROPPED RATES QUICKLY, BUT THEY ALSO RAISED RATES COMING OUT OF THE PANDEMIC TO RECOVER THE COST, NOT HAVING AS MANY PEOPLE.

AND THEN REVENUE PER AVAILABLE ROOM IS A REALLY GOOD KEY INDICATOR HOW WELL IT'S PERFORMING.

SO I JUST THOUGHT THAT WAS AN INTERESTING CHART TO TALK ABOUT IMPACTS TO PLANNING, LOOKING FORWARD AND WHERE WE'RE COMING FROM AND WHERE WE'RE HOPEFULLY GOING. SO.

SO I MADE IT.

OH, WAIT, I GOT 5 MINUTES.

YOU CAN TAKE IT. QUICK COMMENT.

THANK YOU RICK. AS ALWAYS, VERY INFORMATIVE.

IF THERE'S ONE THING THAT THIS GRAPH HELPS US ALL VISUALIZE IS THAT EVEN THOUGH THE RECESSIONS ARE SHORT LIVED, ESPECIALLY IN THE CASE OF COVID, THE IMPACTS COULD BE MUCH MORE FAR REACHING.

AND THE DIP THAT WE WANT TO SEE HERE IN THIS CHART ILLUSTRATES THAT QUITE WELL.

THESE GAPS. YES, IT TAKES A WHILE.

[02:15:02]

YEAH, IT TAKES A LONG TIME.

BUT THIS IS NOT WHAT THEY'RE LOOKING AT.

THIS IS WHAT I'M HERE.

THREE ECONOMISTS. RICK, WE'RE NOT LOOKING AT THIS AND WE'RE NOT LOOKING AT THIS.

WE'RE LOOKING MORE OF GETTING BACK UP [INAUDIBLE] ON YOUR FORECASTING WITH OUR NEW MINIMUM WAGE RATE, THE COST I HEAR ALL THE TIME SAYING, OH MY GOSH, I JUST SPENT $18 FOR A SANDWICH AND A BAG OF CHIPS.

PEOPLE ARE GOING TO GO OUT, RESTAURANTS LESS, BARS LESS.

SO ARE YOU ABLE TO EVEN FORECAST HOW THAT'S GOING TO IMPACT IS, AS YOU SHOWED RIGHT THERE.

THEY JUST RAISED THE RATES, THE ROOM RATES.

AND THEY PROBABLY WILL AGAIN, BECAUSE OF THIS MINIMUM WAGE THAT WE HAVE UP HERE INCREASE.

WHAT KIND OF FORECASTING ARE WE DOING FOR THAT? WELL, BACK TO THIS.

HERE IS YOUR VOICE SPOT ON WITH HOW WE LOOK AT CATEGORIES WHEN I'M LOOKING AT GENERAL FUND SALES, JUST LOOKING AT EVERYTHING. OH, EVERYTHING'S GOING TO MOVE 3%.

I REALLY THINK ABOUT THOSE KIND OF CONSIDERATIONS.

AND HOW DOES HOW DO WE SEE HOTELS IN A RECESSION PERIOD VERSUS HOW WE SEE RETAIL SALES AND HOW THAT IMPACTS THOSE GROWTH PROJECTIONS ARE GOING TO BE DIFFERENT PERCENTAGES OVER TIME.

SO THOSE THOSE ARE KIND OF THINGS WE HAVE A FORECASTING MODEL TO GET THE VARIATION AND GIVE THAT TYPE OF CONSIDERATION.

I THINK ONE OF THE.

BENEFITS OF WHAT HAVE YOU IS WHAT I CALL IT, A BENEFIT.

THE HIGHER COST OF GOING OUT, THE HIGHER COST OF HOTEL ROOMS. THAT INCREASES OUR SALES TAX TO RIGHT.

WHILE WE'RE MAKING LESS THAN THE PRICE IS MORE OR LESS THE SAME NUMBER OF PEOPLE IS STILL THE SAME TAX REVENUES TO THE CITY.

SO THERE THERE'S THAT KIND OF REFLECTION THAT INFLATION HELPS OUR SALES TAX.

IT'S KIND OF WEIRD TO THINK ABOUT IT THAT WAY.

UNTIL UNTIL CONSUMER SPENDING CAN'T AFFORD IT.

AND THAT THAT'S THE NEXT PART IS THAT'S THE CONVERSATION, RIGHT? THAT'S WHAT WE'LL FIGURE OUT NEXT.

TRACY. ALL RIGHT.

WELL, GO START. YES, I'M GOING TO JUST YESTERDAY, HERO.

LOOKS LIKE. BECAUSE.

I CAN ONLY HAVE ONE SLIDE.

IS IT JUST A SPREADSHEET? GOOD AFTERNOON, MAYOR.

VICE MAYOR COUNCIL MEMBER SWEET, CITY MANAGER.

I WAS ASKED TO SPEAK ABOUT OUR BUDGET FOCUS.

BASICALLY, THIS FOCUS IS WHAT WE SHARE WITH OUR EXTENDED LEADERSHIP TEAM SO THAT THEY HAVE DIRECTION ON HOW TO PUT TOGETHER THEIR BUDGETS.

SO WHEN THEY COME AND SEE ALL OF US AND TALK ABOUT WHAT THEY'RE LOOKING FOR FOR THE YEAR, THEY KNOW HOW WE WANT THEM TO CONSIDER THINGS.

SO I THOUGHT IT BEST IF I JUST KIND OF.

READ IT TO YOU A LITTLE BIT BECAUSE THERE'S A LOT.

SO WHAT WE STARTED WITH IS WE SHARED THAT AS WE BEGIN THE PROCESS OF BUILDING THE BUDGET.

THE BUDGET TEAM SHARED THAT THE GOAL IS TO CONTINUE TO MOVE OUR ORGANIZATION, AND YOU'VE HEARD THIS BEFORE TOWARDS A HIGH PERFORMING GOVERNMENT WITH A FOCUS ON A KEY A FEW KEY PRIORITIES DURING THIS YEAR'S BUDGET PROCESS.

THEREFORE, WE DECIDED AS A BUDGET TEAM IT MADE SENSE TO FIRST SEND OUT AN EMAIL FOLLOWED BY HAVING SOME MEETINGS WITH OUR SENIOR LEADERSHIP TEAM.

SO FIRST EMAIL, THEY DIGESTED ANY QUESTIONS THAT THEY MIGHT HAVE.

YOU GO OVER THAT IN A MEETING WITH THEM SO THEY FEEL LIKE THEY'RE READY TO GO.

WE ALSO TELL THEM WHAT THE KEY PRIORITIES ARE.

SO WHEN THEY'RE PUTTING TOGETHER ONGOING AND WHAT YOU'RE GOING TO HEAR, THERE'S A LOT I'M GOING TO ONE TIME REQUEST.

THEY KNOW WHAT WE'RE ACTUALLY LOOKING FOR.

WE TALKED ABOUT THAT SOME OF THE FOCUS WOULD BE ON HAVING SUCCESSFUL RECRUITMENT, RETENTION, COMPENSATION AND INFRASTRUCTURE NEEDS ARE GOING TO BE A PRIORITY IN BUDGET ALLOCATIONS.

WE ALSO SHARED THE CITY WILL BE LIMITED IN OUR ABILITY TO FIND NEW INITIATIVES THAT AREN'T CRUCIAL.

SO WE REQUESTED THAT DIVISIONS WOULD THOUGHTFULLY CONSIDER ANY URGENCY AND ANY NEW REQUESTS.

SO WHEN IT CAME TO OUR PRIORITIES, THE FIRST ONE INVESTING IN EMPLOYEE AND EMPLOYEES WE SHARED THAT THEY ARE MARRIED INCREASES THAT THANKFULLY OUR CITY MANAGER SAW NEEDED TO COME BACK ARE IN THE FIVE YEAR PLAN STILL, SO WE WERE ABLE TO SHARE THAT WITH THEM AND WE'RE EXCITED THAT THEY KNOW THAT THEY'LL BE ABLE

[02:20:09]

TO GET THE FARE INCREASE.

WE ALSO TALKED THAT WE'RE GOING TO CREATE A PAY FOR PERFORMANCE PROGRAM SO THAT WHEN THEY ARE GETTING THEIR EVALUATION, THEY WILL GET THEIR MERIT PERCENTAGE BASED ON THAT EVALUATION OF THEIR PERFORMANCE.

WE TALKED ABOUT HOW WE ARE IMPLEMENTING A MINIMUM WAGE ADJUSTMENT BASED ON THE CONSUMER PRICE INDEX.

WE'VE TALKED ABOUT HOW WE WILL CONTINUE TO MAINTAIN COST SHARE LEVELS FOR BENEFIT COVERAGE CONTRIBUTIONS.

THIS IS A BIG ONE.

OUR GROUP, EMPLOYEE ADVISORY GROUP ALWAYS WANTS TO KNOW HOW BENEFITS ARE GOING TO LOOK.

WE ALSO SAID THAT WE'RE GOING TO MAINTAIN THE GENERAL FUND 60 DAYS SALARY SPEAKS TO HELP FUND THOSE BENEFITS AND RETENTION EFFORTS.

AND WE ALSO..

GO AHEAD WITH.. WHAT IS A SALARY SWEEP.

I'M GOING TO LET SHANNON ANDERSON TELL YOU EXACTLY WHAT THAT DOES SO THAT I DON'T CONFUSE ANYONE.

AND WHILE SHE'S COMING UP, MAYOR, IT'S BEEN IN PLACE FOR SOME TIME AND CONTINUES TO WORK WELL FOR US.

YEAH. WHEN YOU HAVE A VACANCY WITHIN THE GENERAL FUND, WE HAVE VERY BETWEEN A 30 DAY SWEEP AND A 60 DAY SWEEP.

IT'S BASICALLY BECOMES ONE TIME DOLLARS THAT YOU THEN CAN USE IN THE NEXT YEAR BUDGET PROCESS.

WE STARTED DOING THAT TO REALLY HELP US WITH SOME OF OUR CLASSIFICATION COMPENSATION.

AND LASTLY, WE SAID WE WERE GOING TO CONTINUE TO HIRE OUR VACANT AND NEW POSITIONS AT MID-POINT OF THE SALARY RANGE.

SECONDLY, WE WANTED TO MAKE SURE THAT THEY KNEW AND YOU HEARD A LOT ABOUT EBV OR YOU'RE LEARNING A LOT ABOUT BP, THAT WE WANT THEM TO REMAIN ALIGNED WITH THE PB PROCESS. SO WE BASICALLY SHARED THAT WE WILL BE FOLLOWING THE KEY AREAS.

WE ARE GOING TO CONTINUE TO IDENTIFY HIGH SCORING PROGRAMS THAT NEED MORE FUNDING.

WE'RE GOING TO IDENTIFY LOW SCORING PROGRAMS THAT COULD MAYBE BE REALLOCATED TO HELP FUND THE HIGH SCORING PROGRAMS. CAN'T ENSURE THAT THE PBB PROGRAMS THAT ARE BEST ALIGNED WITH THE KEY PRIORITIES HAVE ONGOING RESOURCES.

AND THIS IS ANOTHER BIG ONE.

WE ALSO SHARED THAT OUR FOCUS IS TRANSITIONING 50% OF OUR CURRENT YEAR, ONGOING OPERATING EXPENSES THAT HAVE ONLY BEEN ABLE TO BE FUNDED ONE TIME FOR TRYING IN PRIOR YEARS.

WE'RE TRYING TO GET THEM TO BE FUNDED ONGOING.

SO IT'S CRAZY.

WE HAVE ONGOING NEEDS THAT ARE ONLY BEING BUDGETED AT ONE TIME EVERY YEAR AND WE STOP THAT NONSENSE.

SO WE'RE DEDICATED TO TRYING TO 50% MORE OF THAT.

AND THEN LASTLY, THE FUNDING REQUEST FOCUS IS AGAIN ON INFRASTRUCTURE REPLACEMENT AND MAINTENANCE NEEDS.

SO WE'RE TALKING ABOUT OUR FACILITIES, OUR FLEET.

AGAIN, WE'RE LOOKING AT THE PBB PROGRAM LEVELS.

WE WERE ALSO CAREFULLY GOING TO DISCUSS THE PROGRAM CHANGE REQUEST.

SO THESE ARE THE ONGOING ONE TIME REQUESTS ABOVE THEIR BASE BUDGETS THAT THEY WILL BE ASKING FOR.

WE'RE GOING TO CAREFULLY LOOK AT THOSE, INCLUDING WHAT THEY MIGHT ASK FOR WITH NEW PERSONNEL AND THEN OTHER NON PERSONNEL ITEMS. WE ALSO SHARED THAT REQUESTS THAT FALL INTO, AGAIN, PBB TALK REQUESTS THAT FALL INTO QUADRANT THREE AND FOUR THAT THEY MAY NOT BE CONSIDERED BECAUSE WE'RE BASICALLY TRYING TO MAKE SURE THAT ONE AND TWO ARE PRETTY SOLID.

WE CAN'T FUND EVERYTHING.

DOESN'T MEAN THAT WE WON'T EVER FIND ANYTHING IN THREE AND FOUR BECAUSE THERE'S JUST SOME SERVICES THAT WILL HAVE TO HAPPEN.

BUT WE WANT THEM TO KNOW THAT WE'RE ACTUALLY GOING TO CONTINUE TO LOOK AT THE PBB VERY SERIOUSLY.

WE ALSO STATED THAT NEW ONE TIME POSITIONS MAY BE CONSIDERED WHAT THE POSITION IS NEEDED ON A TEMPORARY BASIS.

AND THEN WE ALSO SHARED THAT WE WILL CONTINUE TO ALWAYS TRACK BUDGET INVESTMENTS RELATED TO THE CARBON NEUTRALITY PLAN.

SO IN SUMMARY, WE SAID OVERALL BUDGET PROCESS IS GOING TO BE BASED UPON OUR FISCAL RESPONSIBILITY WITH ONGOING CONSTRAINED RESOURCES. AND THE BEST OUTCOME THAT WE CAN HAVE IS IF WE WILL ALL WORK TOGETHER TO GET TO WHAT WE NEED AS A BALANCED BUDGET.

SO THAT'S A LOT TO DIGEST, RIGHT? YOU'RE YOU'RE A DIVISION DIRECTOR AND YOU HAVE A LOT TO TACKLE WITH YOUR TEAM.

AND I CAN TELL YOU MY DIVISION DIRECTORS ASK A LOT OF QUESTIONS ALL THE TIME.

SO WE TRY VERY HARD TO MAKE SURE BEFORE THEY GO IN AND THEY START CREATING THOSE BUDGETS.

THEY CLEARLY KNOW WHAT WE'RE LOOKING FOR SO THAT WHEN THEY COME INTO THE DIVISION REVIEW MEETINGS, THEY DON'T FEEL LIKE THEIR WORK WAS FOR NOTHING.

AND I. ALL KIDDING ASIDE, BUT I BASICALLY THINK IT WOULD BE BETTER IF WE JUST SAID, PLEASE DON'T ASK US FOR ANYTHING.

[02:25:03]

THAT'S NOT GOING TO HAPPEN AND GRANT WON'T ALLOW IT.

UNFORTUNATELY, WE WILL GO THROUGH THREE WEEKS OF DIVISION REVIEW MEETINGS AND WE TAKE EACH DIVISION VERY SERIOUSLY AND THEN WE BRING YOU A BALANCED BUDGET. AND IN SOME CASES WE OFFER YOU A LOT OF OPPORTUNITY TO ADD WHAT YOU THINK MIGHT BE MISSING.

IS THERE ANY QUESTIONS BEFORE I TURN IT OVER TO RANDY? QUESTION SO ON THE QUADRANTS THAT WE HAVE, HOW DOES IT DIFFERENTIATE BETWEEN WE'VE GOT PRIORITIES IN ENVIRONMENTAL STEWARDSHIP AND SUSTAINABLE INFRASTRUCTURE, WHICH IS PART OF OUR SUSTAINABILITY CARBON NEUTRALITY PLAN.

BUT THEN YOU'VE ADDED A TRACK, THE REQUEST TO THE CARBON NEUTRALITY PLAN.

IS THAT. DOUBLE DIPPING, IF YOU WILL, FOR LACK OF BETTER TERMS. I MEAN, HOW WE'VE GOT TO QUADRANTS FOCUS ON THAT.

THOSE ARE COMMUNITY PRIORITIES.

AND NOW WE'RE ALSO TALKING ABOUT EVERYTHING ELSE.

HOW DOES IT MATCH WITH THE CARBON NEUTRALITY? CAN YOU SPEAK A LITTLE BIT ABOUT THE DIFFERENCE? I'M GOING TO LET GREG CLIFTON SPEAK TO THAT.

I THINK IT'S A VERY GOOD QUESTION.

BOTH. METHODOLOGIES, I GUESS HEAD US IN THE SAME DIRECTION, WHICH IS TO DO WHAT WE CAN TO ADVANCE.

A LITTLE BIT WITH RESPECT TO OUR CARBON NEUTRALITY PLAN.

AND WE HAVE BEEN LOOKING AT AT THIS PROGRESS.

I DON'T KNOW THAT I WOULD CALL IT DOUBLE DIPPING.

I THINK IN ONE CASE, THE BROADER PRIORITY BASED BUDGETING TOOL IS OF COURSE SOMETHING WHERE CARBON NEUTRALITY AND SUSTAINABILITY I THINK IS THE NOMENCLATURE USED IS ONE OF OUR KEY COMMUNITY PRIORITIES.

AND TO YOUR EARLIER QUESTION, IT'S NOT NECESSARILY ATTRIBUTED ANY MORE WEIGHT THAN THE OTHER COMMUNITY OF PRIORITIES.

THAT SAID, WE DO TRY TO LOOK AT ALL REQUESTS THROUGH THE LENS OF SUSTAINABILITY AND SPECIFICALLY HOW IT COMPORTS OR DOESN'T COMPORT WITH OUR CARBON NEUTRALITY PLAN.

I'LL SHARE WITH YOU, COUNCILMEMBER, THAT WE DO GET REQUESTS FROM THE COMMUNITY ASKING WHAT WE'RE DOING FINANCIALLY.

HOW ARE WE MOVING THE NEEDLE ON CARBON NEUTRALITY? HOW MUCH INVESTMENT ARE WE MAKING? SO I THINK IT'S AN IMPORTANT PIECE OF INFORMATION.

I KNOW THE MAYOR HAS BEEN.

THAT REQUEST WAS FORWARDED TO THE MAYOR RECENTLY.

I GOT COPIED ON AN EMAIL.

SO THERE IS INTEREST NOT JUST IN WHAT WE'RE DOING TOWARD THE KEY COMMUNITY PRIORITY AS STATED, BUT WHAT WE'RE DOING AS A WHOLE ORGANIZATIONALLY FOR CARBON NEUTRALITY.

ONE MORE EXAMPLE JUST TO I GUESS GIVE SOME BASIS TO MY RESPONSE HERE.

IT WAS NOT THAT LONG AGO WHEN WE HAD A PETITION COME IN.

I USE THE WORD LOOSELY BECAUSE I DON'T THINK IT WAS A FORMAL CITIZEN'S PETITION.

AT LEAST IT WAS NOT ARTICULATED THAT WAY.

BUT IT WAS A SIGNED DOCUMENT THAT CAME INTO THE COUNCIL WITH A LARGE NUMBER OF SIGNATORIES ON IT, ASKING THAT EVERYTHING IN THE CITY'S BUDGETS BE CAREFULLY SCRUTINIZED FROM A CARBON NEUTRALITY STANDPOINT AND THAT THE SUSTAINABILITY DIVISION SHOULD SHOULD HAVE A LEAD ROLE IN THE ORGANIZATION OVER ALL OTHER DIVISIONS.

SO YOU RECALL THAT I JUST THESE THESE THINGS THAT COME FORWARD TO US ARE, YOU KNOW, WE DON'T WANT TO BE DISMISSIVE OF THEM PER SE, BUT WE CERTAINLY WANT TO ANSWER THE REQUEST BY OUR COMMUNITY AS TO WHAT WE ARE DOING FINANCIALLY, BUDGET WISE, TO ADVANCE OUR CARBON NEUTRALITY.

I HOPE THAT HELPS EXPLAIN.

BECAUSE I JUST WHEN YOU LOOK AT WE TALKED ABOUT HOW WE DID COMMUNITY OUTREACH AND WE CAME UP WITH THESE SEVEN QUADRANTS.

SO THAT'S WHAT THE WHOLE COMMUNITY AS A WHOLE 900 OR FIVE PEOPLE OR WHATEVER.

SO HOW DO WE DETERMINE WHAT OUR WHOLE COMMUNITY WANTS? AND SO WE'VE GOT THOSE REALLY WELL THOUGHT OUT QUADRANTS.

AND THEN YOU ADDED.

I WAS JUST TRYING TO UNDERSTAND.

HOW DO WE WHY DID WE ADD THAT IF WE'VE ALREADY GOT THEM VERY WELL DESCRIBED IN OUR PRIORITIES? SO JUST TRYING TO UNDERSTAND THAT PROCESS.

THANK YOU. YOUR QUESTION IS A VERY GOOD ONE.

THE CUSTOMER FEEDBACK IS ALSO PRIOR TO PUTTING ALL THE BBB TICKET PRIORITIES TOGETHER, WE ACTUALLY HAD THE LENS OF OF ALL OF US PAYING MORE ATTENTION TO THE CARBON NEUTRALITY PLAN IN OUR BUDGETS.

SO THAT'S PROBABLY WHY YOU'RE SEEING A LITTLE BIT OF THAT, TOO.

THERE'S KIND OF THAT OVERLAP.

I THINK AS A COUNCIL BODY, THE BEST THING TO KEEP IN MIND IS ALL OF IT MATTERS AND WHAT WE DO FOR THE COMMUNITY MATTERS SO WE CAN BALANCE THAT OUT.

[02:30:06]

THAT'S PROBABLY THE BEST SOLUTION POSSIBLE, AND THAT'S WHAT WE'RE TRYING TO DO AS A BUDGET TEAM.

WHEN ALL THESE REQUESTS COME FORWARD, TRY TO BALANCE IT OUT SO THAT WE'RE DOING THE BEST FOR ALL OF OUR COMMUNITY.

THANKS FOR YOUR QUESTION. ANYTHING ELSE BEFORE I LET RANDY TAKE OVER? ALL RIGHT. I JUST WANT TO KNOW, WHERE IS THE SUGAR TODAY? BECAUSE I'M EATING IT.

THANK YOU, HEIDI. I HAVE GLUTEN FREE SUGAR OVER HERE.

JUST IT.

WE HAVE 15 MINUTES.

WELL, GOOD AFTERNOON, EVERYBODY.

OH, WHY? WHY DO WE WORK WITH COUNCIL MEMBERS? CITY MANAGER STEVE.

MY NAME'S RANDY TRACY.

I'M A NEW HR AND RISK MANAGEMENT DIRECTOR.

SO HAPPY TO BE HERE JUST PAST MY 60 DAY MARK.

SO IT'S WONDERFUL.

IT'S BEEN A FUN FEW MONTHS.

HOW DO YOU LIKE THE WEATHER? WELL, WHEN YOU DO IT, YOU DO IT BIG, DON'T YOU? LOOK SNOW. HOW ABOUT THREE FEET? THERE YOU GO. THAT'S A BIT OF IT'S BEEN AN ADJUSTMENT.

THANK YOU SO MUCH FOR HAVING ME TODAY TO TALK A LITTLE BIT ABOUT COMPENSATION JUST IN THE HIGHER LEVEL, I JUST HAVE TO SAY THANK YOU TO EVERYBODY ON MY TEAM, JESSICA, BRANDI, EVERYBODY THAT'S HELPED ME.

I'M IN A LEARNING PHASE, OBVIOUSLY, THE FIRST 60 DAYS TO LOOK AT WHAT YOU'RE DOING, LOOK AT YOUR PLANS, LOOK AT YOUR YOUR OVERALL PACKAGE AND DO AN ASSESSMENT ON IT.

SO A LOT OF THE STUFF THAT I'LL BE TALKING ABOUT TODAY IS IS REALLY REFLECTING BACK ON WHAT A LOT THAT YOU'VE ALREADY DONE AND THINGS THAT ARE GOING TO BE COMING UP.

SO I APPRECIATE IT VERY, VERY MUCH.

AND I WILL TRY TO STAY IN MY TIME FRAME BECAUSE I CAN TALK ABOUT THIS STUFF ALL DAY.

JUST FROM MY LAUGH IN OUR SLIDE, WE'RE GOING TO TALK A LITTLE BIT ABOUT MINIMUM WAGE AND THE ORDINANCE, THE MANDATORY INCREASES, THE MERIT WHICH HAS ALREADY BEEN APPROVED AND BUDGETED MARKET ADJUSTMENTS ARE OUR PLANS.

AND THEN ALSO TO THE BUDGET TEAM, I BELIEVE TUESDAY IS GOING TO HEAR SOME OF OUR ADDITIONAL RECOMMENDATIONS THAT WILL COME BACK AT YOUR NEXT RETREAT.

SO A LOT OF THAT, A LOT OF DETAILS ARE STILL YET TO COME.

SO. SO A MINIMUM WAGE ORDINANCE.

WELL, MY BOYFRIEND CERTAINLY GETS.

THERE WE GO. THANK YOU.

THANK YOU SO, SO MUCH.

IT'S JANUARY 1ST, 2023.

AS WE ALL KNOW, OUR MINIMUM WAGE WENT UP TO 1680.

AND ANY TIME THAT HAPPENS, THERE'S GOING TO BE A LITTLE BIT OF IMPACT ON EVERYTHING ELSE.

SO WHEN WE TALK ABOUT MANDATORY MINIMUM WAGE, IT'S JUST THOSE THAT WERE UNDER 1680 HAVE TO GO UP BY LAW.

RIGHT? SO IF YOU JUST DO THAT, SOMETIMES IT'S JUST A FEW PEOPLE THAT ARE HAVE TO BE PUSHED OVER.

YOU CAN DO THAT TO STOP THERE, BUT YOU CREATE COMPRESSION.

SO THIS PERSON NOW GETS A LITTLE BIT MORE AND HIS SUPERVISORS NOT ONLY MAKE HIM $0.03 MORE THAN THEY'RE MAKING.

SO IT CREATES SOME COMPRESSION IN THIS PARTICULAR CASE, BECAUSE THE INCREASE WAS NOT SO SIGNIFICANT, THE COMPRESSION AND THE RIPPLE EFFECT DIDN'T GO UP VERY FAR, ONLY TO ABOUT MAYBE FIVE RANGES OUT OF ALL OF OUR CLIENTS.

SO THE LEADERSHIP TEAM LOOKING AT THAT, MAKING SURE THAT WE CONTINUE TO HAVE A GOOD, HEALTHY COMPENSATION PLAN, WENT AHEAD AND ALLOWED US TO GO AHEAD AND MOVE SOME OF THAT COMPRESSION UP TO THOSE TOP 4 TO 5 BRANCHES AS WELL.

SO THAT BEGINS TO PUSH THOSE SPREADS BACK TO WHERE THEY'RE SUPPOSED TO BE.

SO IF YOU WANT A 2 TO 3% SPREAD BETWEEN MAYBE A LIFEGUARD AND A LIFEGUARD SUPERVISOR, THEN YOU'VE GOT TO KEEP THAT COMPRESSION RELAXED AS AN EXAMPLE.

SO WE DID THAT, BUT IT ONLY WENT UP TO WHERE WE HAVE INITIAL IMPACTS.

AS YOU CAN SEE, YOUR AUDIENCE BEGINNING ON JANUARY 23 AND EACH YEAR THEREAFTER, THE MINIMUM WAGE MUST INCREASE BY THE CONSUMER INDEX PRICE INDEX AND BE AT LEAST $2 HIGHER THAN THE ARIZONA STATE MINIMUM WAGE.

SO IF WE LOOK AT THE CURRENT TRAJECTORY OF CPI, NOW IT'S ALL OVER THE BOARD AND THERE'S SO MANY FACTORS.

BUT IF IT JUST STAYS ON THE CURRENT TRAJECTORY, WHICH IS A SLIDING DECREASE, EVERY TIME YOUR NEXT MINIMUM WAGE COULD BE AROUND $18 AN HOUR, THAT'S WHAT WE'RE LOOKING FOR. OKAY.

SO AND THERE CAN BE SO MANY THINGS COULD IMPACT TAKE A NOSEDIVE.

I MEAN, A LOT OF THINGS CAN HAPPEN.

BUT JUST LOOKING AT THE CURRENT TRAJECTORY, THAT'S THAT'S A POSSIBILITY, RIGHT.

[02:35:05]

MINIMUM WAGE CPI IMPACTS.

OBVIOUSLY IT GOES FROM ZERO OR 4 TO 25.

THAT WAS THAT INITIAL WAVE THAT WE HAD TO KIND OF FIX.

THOSE ARE THE LOWER LEVEL RANGES.

NOW WE DO HAVE A COUPLE OF RANGES THAT WE'RE TALKING ABOUT COLLAPSING BECAUSE THERE'S SO FEW POSITIONS IN THOSE RANGES ANYMORE THAT WE'RE GOING TO DO SOME MAINTENANCE ON THOSE PROGRAMS, HOPEFULLY COMING UP SOON.

THE TEMPORARY PAY POINT IS ALSO IMPACTED BY THE CPI BECAUSE IT'S TIED TO A REGULAR PAY POINT.

SO IF YOU'RE ZERO FOR R, THERE'S A ZERO FOR T AND IT'S ZERO FOR R GETS IMPACTED.

SO TWO ZERO 14, WHICH IS OUR ATTENTION.

SO THESE THESE IMPACTS ARE FELT ACROSS YOUR ENTIRE COMPENSATION PLAN.

WE'RE ALSO EVALUATING TIMING.

LAST YEAR, CRAIG CITY MANAGER CLIFTON YOU GUYS DID AN EARLY IMPLEMENT, CORRECT? WENT AHEAD AND PUT IT IN IN JULY AS OPPOSED TO WAITING TILL JANUARY SHOULD THAT'S GOING TO BE A DISCUSSION AS WELL IN THE WEEKS TO COME AS TO WHETHER OR NOT THAT'S GOING TO BE A GOOD STRATEGY, BECAUSE AS YOU ALL KNOW, AND IT'S NOT JUST HERE WHERE I CAME FROM, EVERYBODY'S SUFFERING THE RECRUITING PROBLEMS, RETENTION ISSUES, THE TRENDS THAT ARE HAPPENING IN THE WORKFORCE.

NO, GREAT, APPLYING, QUIET, QUITTING.

THESE ARE ALL NEW TERMS THAT WE'RE EXPERIENCING.

AND EVERY GOVERNMENT ENTITY, NOT JUST IN FLAGSTAFF.

SO I DON'T WANT YOU TO FEEL LIKE WE'RE THE ONLY ONES HAVING TO FACE THIS.

THIS IS A THIS IS A NATIONWIDE PROBLEM THAT WE'RE ALL HAVING TO COMBAT AS WELL.

SO I KNOW THERE'S GOING TO BE A LOT OF DISCUSSIONS ABOUT HOW WE FACE THOSE THINGS AND COME UP WITH VIABLE SOLUTIONS.

THE MERIT, WHICH WAS A BUDGETED AND APPROVED BY THE CITY MANAGER, I BELIEVE THAT WAS ON A FIVE YEAR PLAN PRE BUDGETED.

OKAY. WHAT YEAR? WHEN DO YOU RECALL? SECOND. IT'S A ROLLING, ROLLING.

SEVEN YEARS ROLLING.

OKAY. WHICH IS GREAT.

WHICH IS GREAT. IT KEEPS IT KEEPS YOU HEALTHY.

IT KEEPS YOU BEING COMPETITIVE.

AND YOU HAVE TO HAVE THAT.

THERE WAS A TIME PRIOR TO THE PANDEMIC THAT ONE HAD DONE A 2% COLA AND EVERYBODY'S HAPPY, RIGHT? NO, THAT WON'T WORK ANYMORE.

I'LL TELL YOU WHAT I SAW BOTH WHERE I CAME FROM AND WHERE I'M HERE NOW IS THAT EMPLOYEES, BECAUSE OF THE INFLATION, ARE INDIVIDUALLY BECOMING THEIR OWN ADVOCATES TO DRIVE WAGES HIGHER.

WHEN WE DO AN OFFER, FIRST THING THEY DO IS COUNTEROFFER 15,000.

EVEN IF THEY CAN'T GET IT, THEY'RE TRYING TO DRIVE THOSE.

SO WAGES HAS BEEN DRIVING HIGHER AND HIGHER ACROSS THE NATION.

WE FACE THE SAME THING.

HOW DO WE PROVIDE A REASONABLE, FAIR OFFER AND STILL MEET THE NEEDS OF THE CANDIDATE? SO THOSE ARE ALWAYS STRUGGLES.

SO BY DOING THIS, MERIT INCREASES, CONSISTENT MERIT INCREASE, IT REALLY HELPS US STAY A LOT MORE COMPETITIVE THAN OUR SOMETIMES EVEN OUR COMPETITORS THAT ONLY DO IT ONCE A YEAR.

SO IT GOES TO 3% TO THE REGULAR PAY PLANS, THE STATE PLANS, FIRE POLICE, WATER SERVICES.

THEY HAVE A LITTLE BIT DIFFERENT WAY THAT WE HAVE TO DO IT ON THEIR STEPS SO THEY'RE NOT IMPACTED DIRECTLY BY THAT.

IT'S A DIFFERENT KIND OF INCREASE.

SO FOR YOU, IF YOU HAVE QUESTIONS, I'M SURE SOMEBODY IN THE ROOM CAN ANSWER A QUESTION.

I SAY, WHY USE THE WORD MERIT? EVERYBODY GETS IT RIGHT? NO. SO AMERICAN INCREASE IS A LITTLE DIFFERENT THAN COCA COLA.

EVERYBODY GETS IT BECAUSE THE COST OF LIVING IN THIS PARTICULAR CASE, THE WAY IT'S BEING APPLIED HERE, SIR, IS THAT IF YOU DON'T MEET STANDARDS, IF YOU GET A BAD EVALUATION RATING, THEN YOU WOULD NOT GET THAT IF YOU MEET STANDARDS OR HIGHER THAN YOU WOULD GET THE 3% MOST EMPLOYERS GET FOR SURE.

INDEED, AND MOST AGENCIES, THE TRUTH IS LESS THAN 5% OF THE EMPLOYEE COUNT IS LESS THAN STELLAR.

IN MOST CASES, I DID THE MATH HERE.

I HAVEN'T YET. IT'S PROBABLY EVEN LESS THAN.

CHECK. UM, FAVORITE PERFORMANCE.

SO BECAUSE THAT THAT'S A GREAT POINT.

YOU GET A GREAT SEGWAY INTO IT.

THAT'S WHY IT'S CONFUSING BECAUSE THE COMPANY EVER DID USE THESE TERMS VERY DIFFERENT.

FROM PLACE TO PLACE FOR SURE.

BUT IN THIS PARTICULAR CASE, IT'S DISTINGUISHED FROM A COLD BUT COLD.

EVERYBODY GETS IT GOOD FOR GOOD OR BAD THINGS HERE.

IF YOU'RE NOT MEETING STANDARDS, YOU WOULDN'T RECEIVE THAT.

[02:40:03]

ANYBODY ELSE WOULD GET THEM.

AND NOW THIS COMING YEAR, WE'RE WORKING TOWARDS A JULY 1ST IMPLEMENTATION OF DOING THE TRUE PAY FOR PERFORMANCE.

RIGHT. SO NOW FROM AMERICANS TRANSITIONING AND MIGRATING TO A PAY FOR PERFORMANCE BASED ON THE RATING YOU RECEIVE IN YOUR EVALUATION WILL DETERMINE THE PERCENTAGE THAT YOU WILL RECEIVE WITHIN A SPECIFIC RANGE, MAYBE 2 TO 4% WE BUDGETED FOR IF YOU GET IT TWO, IF YOU GET A THREE OR FOUR OR SO ON.

SO WE'RE WORKING TOWARDS THAT RIGHT NOW.

THIS ALL STARTED BEFORE I GOT HERE AND THEY'RE DOING A GREAT JOB OF MOVING IN THAT DIRECTION.

WE'RE COLLABORATING WITH THE CONSULTANT TO TRY TO PROVIDE SOME PROFESSIONAL TRAINING BECAUSE PAY FOR PERFORMANCE IS A DIFFERENT MENTALITY.

I'VE DONE THIS TWICE AT TWO AGENCIES AND IT TAKES A LOT OF TRAINING WITH BOTH STAFF TO UNDERSTAND WHY YOU GET WHAT YOU GET AND ALSO SUPERVISORS AS TO HOW TO MEASURE THINGS ACCURATELY AND FAIRLY.

AND SO HOPEFULLY THOSE CONSULTANTS CAN REALLY BRING SUBSTANTIVE TRAINING TO OUR TEAMS. STATE PLANS ARE NOT IMPACTED BY THIS.

AS I STATED EARLIER, THE WAY THOSE STEPS CHANGE IS A LITTLE DIFFERENT THAN EVERYBODY ELSE.

JUST. WE ALSO WANT TO DISTINGUISH MARKET ADJUSTMENTS MIDYEAR AND ANNUALLY.

EVERYTHING'S A MARKET ADJUSTMENT, ACTUALLY.

IT'S ALL THE SAME PIECE.

BUT IN ORDER TO KEEP PEOPLE CLEAR.

MIDYEAR MARKET ADJUSTMENTS ARE DIFFERENT THAN ANNUAL MARKETS.

SO MID-YEAR MARKET ADJUSTMENTS, THIS TEAM, I BELIEVE, LAST YEAR COMMITTED THAT HR WOULD LOOK AT 25% OF OUR CLASSIFICATIONS EACH YEAR, GOING THROUGH ALL OF OUR CLASSIFICATIONS OVER THE COURSE OF A FOUR YEAR PERIOD.

SO THIS IS A MUCH DEEPER STUDY THAN JUST A BENCHMARKING TYPE STUDY.

THE TEAM ALSO SET ASIDE $143,000 TO HELP WITH THOSE ADJUSTMENTS.

SO, FOR EXAMPLE, WE PICK 25% OF ALL OF OUR CLASSIFICATIONS FOR 200 SOME ODD, AND THOSE ARE PICKED BASED ON HAVE YOU HAD HARD TIME RECRUITING THOSE TYPES OF THINGS? IT'S NOT JUST RANDOM.

WE PICK THOSE THAT HAVE SOME CHALLENGES AHEAD OF TIME AND IF YOU TRY TO DO THOSE FIRST AND LET'S JUST SAY WE PICKED OPERATORS, RIGHT, AND WE LOOK AT THEM AND WE GO TO THE MARKET AND WE LOOK AT THEIR SALARIES AND GO, WOW, THEY'RE 4% BEHIND ALREADY, AND WE JUST MADE A CHANGE.

SO RATHER THAN JUST LEAVE THEM THERE BECAUSE WHAT DOES THAT CAUSE NOW THE FOLKS THAT ARE TRYING TO RECRUIT OPERATORS CAN'T GET ANY OPERATORS BECAUSE IT'S ALREADY LAGGING IN THE MARKET. THAT 143,000 IS VERY VALUABLE BECAUSE NOW WE CAN MAKE THE ADJUSTMENTS ON JUST THAT POSITION.

AS WE LOOK AT THEM, WE CAN GET THEM UP TO WHERE THEY NEED TO BE.

SO IT'S A HOLISTIC APPROACH.

IT'S WHAT YOU'RE DOING AND WE'LL BE DOING.

PLUS, IT'S WHAT HR HAS BEEN EMPOWERED TO DO THROUGHOUT THE YEAR TO MAKE SURE THAT WE'RE STAYING UP WITH THE MARKET AND BEING COMPETITIVE.

YES, MA'AM. WOULD YOU TALK ABOUT HOW IT COMPARES TO THE MARKET? OBVIOUSLY, FLAGSTAFF IS ABOUT 13, 14% HIGHER COST OF LIVING.

WE HAVE OUR OWN LIVING WAGE RATE FOR COCONINO COUNTY.

SO ARE WE COMPARING OUR SALARY SCALES AGAINST A LIVING WAGE FOR COCONINO COUNTY OR JUST WHAT THE INDUSTRY FOR THOSE JOB POSITIONS? FANTASTIC QUESTION.

THAT'S SOMETHING THAT I LOOK AT CONSISTENTLY.

SO THERE'S TWO WAYS WE LOOK AT IT.

AND THEN I'VE ACTUALLY STARTED TALKING TO MY TEAM ABOUT LOOKING AT THERE'S ABOUT 26 COMPARATORS THEY'VE BEEN USING.

THAT'S WHAT I'VE FOUND.

THESE ARE LOCAL VALLEY EVERYWHERE, RIGHT? AND WE LOOK AT THOSE AND WE SEE WHERE WE FALL WITHIN THAT FRAMEWORK.

NOW EVERY AGENCY, WHETHER FORMALLY OR INFORMALLY, CHOOSES WHERE ON THAT LIST YOU'RE GOING TO BE.

IT APPEARS, BASED ON THE RESEARCH I'VE DONE, WE'VE LANDED AT THE 50 PERCENTILE MARK, MEANING WE TRY TO FALL SOMEWHERE IN THE MIDDLE.

WE'RE NOT COMPETING WITH, YOU KNOW, CITY OF PHOENIX, WHO SEEMS TO HAVE A POT OF MONEY.

I DON'T KNOW WHERE IT COMES FROM, BUT.

AND THEN YOU END UP WITH A STATE OF ARIZONA, WHICH IS TYPICALLY LAGS EVERY ONE OF THOSE CHARTS.

WE TRY AND DEFINE THE MIDDLE.

SECOND THING, AFTER YOU LOOK AT THAT, I'VE ASKED THE TEAM TO START LOOKING AT OUR TRUE COMPARATORS.

ALL RIGHT. THIS IS WHERE I CHOOSE A TRUE COMPARATOR.

CAN I KEEP MY HOUSE HERE AND DRIVE THERE? THAT'S WHO I'M REALLY COMPETING WITH.

PRESCOTT VALLEY, NAU, PEOPLE LIKE THAT, RIGHT? JUST SO WE HAVE BOTH OF THESE CHARTS, WE SEE WHERE WE FALL IN THIS ONE AND THEN WE SEE WHERE WE FALL IN THE FOLKS WHERE WE'RE REALLY RIGHT.

[02:45:02]

AND THEN WE WANT TO ALSO THIS ONE SIZE FIT ALL DOES WORK, RIGHT? SO THERE ARE SOME POSITIONS IN THE CITY.

I GOT 5 MINUTES, ONE POSITION IN THE CITY.

SOMETIMES IT MAY GO A YEAR WITHOUT IT, WE CAN'T DO 50 PERCENTILE ON THAT POSITION.

WE'RE NEVER GOING TO FILL IT.

SO SOMETIMES WE NEED TO BE FLEXIBLE ENOUGH, WHICH WE'VE BEEN DOING IS WORKING WITH POLICE AND FIRE AND OTHER PLACES TO SAY THIS POSITION NEEDS TO BE AT THE 75 PERCENTILE.

BECAUSE WE'RE NEVER GOING TO RECRUIT TO 50%.

SO WE HAVE TO HAVE THAT FLEXIBILITY TO JUST THOSE A LITTLE BIT SO THAT WE CAN BE COMPETITIVE.

AND WE'RE STARTING TO DO THAT NOW.

I DON'T THINK WE'LL EVER BE NUMBER ONE.

THERE ARE SOME AGENCIES OUT THERE.

I ALSO DON'T KNOW WHERE THEY'RE GETTING THE MONEY FROM.

CAN I OFFER A VERY QUICK COMMENT ON YOUR ADJUSTMENTS IN THE VALUE OF THOSE AS WE DID THE ENTIRE ORGANIZATION OF COMPENSATION STUDY YEARS AGO? BY THE TIME THAT STUDY WAS CONCLUDED, AND IT TOOK A YEAR AND A HALF, TWO YEARS FOR IT TO BE CONDUCTED, AND THEN THE NUMBERS WERE PUT INTO PLACE AND A LOT OF PROCESS, ARGUABLY WE WERE A BIT OUTDATED BY THE TIME IT WAS IMPLEMENTED.

THERE'S THAT MUCH LAG TIME THESE DAYS WITH THINGS CHANGING AS FAST AS THEY ARE.

THIS MID-YEAR ADJUSTMENT, EVEN IF IT'S JUST AT 25%, PROBABLY IS GOING TO HELP US STAY MORE COMPETITIVE THAN DOING EVERYTHING EVERY FEW YEARS. AND I'M NOT SAYING WE WON'T DO THAT, BUT JUST WANT TO GIVE IMPORTANCE TO THIS MIDYEAR ADJUSTMENT.

NO, I AGREE. ABSOLUTELY.

IN THIS MARKET, THE WAY THAT IT'S MOVING, IT'S A IT'S A TREADMILL.

IT'S NOT A STATIC POINT.

SO LIKE HITTING A MOVING TARGET, BY THE TIME WE PUT IN A RAISE, ALL OF OUR COMPETITORS, THE PEOPLE THAT ARE SELLING OUR PEOPLE, ARE PUTTING IN RAISES, TOO.

AND SO HE'S EXACTLY CORRECT IS THAT IF WE DO, WE HAVE TO DO IT HOLISTICALLY, RIGHT? WE DO THINGS ON AN ANNUAL BASIS.

WE DO THINGS THROUGHOUT THE YEAR, AND THEN WE ALSO TARGET THINGS AS THEY BECOME PART OF DEAL AND SO ON BY DOING ALL OF THESE THINGS AND BEING POWERED TO DO THAT AND ALSO HAVING THE FUNDING TO DO IT.

THAT KEEPS US IN A VERY COMPETITIVE PLACE THROUGHOUT THE ENTIRE YEAR.

OKAY. AND I'M DOWN FOR ONE MINUTE.

I ADD SOMETHING REALLY QUICK.

AND SO TO THE BENCHMARK DATA THAT RANDY IS TALKING ABOUT, WE ACTUALLY PURCHASE WHAT'S CALLED THE COST OF LIVING INDEX.

AND SO THAT WILL TAKE WHAT'S HAPPENING HERE IN COCONINO COUNTY AND COMPARE IT TO WHAT'S HAPPENING IN MARICOPA COUNTY TO MAKE SURE THAT IT'S EVEN OUT.

SO THE DOLLARS THAT YOU'RE LOOKING AT ARE THE SAME.

ANSWER QUESTIONS. LOOK.

SO OUR COMPENSATION AND BEING ABLE TO RECRUIT AND RETAIN GREAT, AMAZING PEOPLE FOR THE CITY OF FLAGSTAFF IS WHAT I'M COMMITTED TO DO.

IT TAKES INTENTIONAL ONUS ON FOCUSING ON THE MAINTENANCE OF.

IF IT GOES TO COMPLEX, IT'S SUPPOSED TO BE PART OF MY PRESENTATION.

LIKE, WOW, THAT'S A COMPLEX COMP SYSTEM.

IT'S NOT THAT COMPLEX.

BUT IT DOES TAKE RESOURCES.

AND THE THING I HAVE FOUND IN THE LAST 26 YEARS DOING THIS STUFF IS IT TAKES INTENTIONAL.

WE HAVE TO INTENTIONALLY STAY ON TOP OF IT, CONSTANTLY LOOKING AT OUR COMPETITORS, CONSTANTLY TALKING TO THE DIVISION DIRECTORS AND THE CITY MANAGER'S OFFICE SAYING, WHERE ARE WE HAVING PROBLEMS AT? LET'S NOT WAIT EIGHT MONTHS, LET'S WAIT TOMORROW.

WE'RE GOING TO GET STARTED ON IT.

AND SO JUST BEING VERY MINDFUL ABOUT BEING INTENTIONAL ABOUT THAT AND KEEPING THAT WHOLE PROGRAM BEING COMPETITIVE IS GOING TO BE WHAT WE DID TO MEET THOSE GOALS AND OBJECTIVES.

SO ANY QUESTIONS ARE I KNOW I'M OUT OF TIME [INAUDIBLE] ALL RIGHT.

CAN I JUST MAKE A COMMENT, THOUGH? YEARS AGO AND I DON'T KNOW IF IT STILL HAPPENS WHERE YOU CAN TELL ME IF NOT WHEN I WAS ON THE SCHOOL BOARD, WE THE ALLIANCE AND WHAT WE WOULD DO IS NAU HAD A POSITION AND IF THEY HIRED THAT PERSON AND THEY HAD A SPOUSE OR PARTNER, THAT NAME OR RÉSUMÉ OR WHATEVER WOULD GO INTO A POT, AND THEN WE COULD LOOK AT THOSE FOLKS.

THE SAME WOULD BE WITH THE CITY IF THEY WERE HIRING SOMEBODY AND THAT PERSON HAD A SPOUSE OR PARTNER, THEN THEIR NAME AND RESUMÉ WOULD GO IN AND THEN THAT WOULD HELP ALL OF US.

BECAUSE IF YOU COULD FIND TWO PEOPLE A JOB, THEN IT MAKES IT A LITTLE BIT BETTER IF THAT PERSON WANTS TO WORK.

SOME PEOPLE ARE GOING TO CHOOSE SOME OTHER KINDS OF THINGS, BUT DO WE STILL DO THAT? DO WE EVEN HAVE THOSE CONVERSATIONS AND ARE THEY REALLY TRUE CONVERSATIONS OR DO WE JUST SAY WE'RE GOING TO DO IT, BUT REALLY WE DON'T DO IT? IT'S A LITTLE BIT LESS FORMAL.

SO I WOULD SAY PROBABLY BACK IN THE MID 2000 WE HAD AN HR PIECE OF THAT ALLIANCE AND THE HR PROFESSIONALS

[02:50:07]

OF THOSE AGENCIES WOULD GET TOGETHER AND TALK.

MOST OF THAT IS GONE ELECTRONIC.

AND SO WHAT HAPPENS NOW IS, FOR INSTANCE, RECENTLY AT CSC, ONE OF THEIR EMPLOYEES HAD A TRAILING SPOUSE WHO HAD A BACKGROUND IN PUBLIC WORKS, AND SO THEY SENT IT OUT TO ALL OF US TO SAY, HERE'S A TRAILING SPOUSE, HERE'S HIS BACKGROUND, HERE'S HIS RESUME.

AND WE WERE ABLE THEN TO COMMUNICATE AS TO WHAT PROCESSES WE HAVE GOING AND WHERE THAT PERSON WILL WANT TO LOOK AND WHAT POSITIONS ARE THEY CALLED.

SO, YES, WE STILL HAVE IT, BUT IT'S A LOT MORE INFORMAL THAN WHAT IT USED TO BE AS FAR AS THOSE MONTHLY ALLIANCE MEETINGS FOR THE HR PROFESSIONALS.

AND THEN THOUGH THERE'S PROBABLY A WHOLE BUNCH OF LEGAL STUFF AND ALL OF THAT WOULD HAVE BEEN STERLING, I'M SURE YOU JUMP IN HERE, BUT I DON'T KNOW.

I GUESS IT SEEMS LIKE WE COULD ALL DO OURSELVES A LITTLE BIT OF A FAVOR IF WE TRY TO.

SO A LITTLE BIT MORE RATHER THAN SAYING, GO FILL OUT AN APPLICATION.

SO HAVE AN EXCELLENT IDEA.

YEAH. ANYWAY, REFERRAL PROGRAM MIGHT BE SOMETHING WE'RE TRANSITIONING TO.

ABSOLUTELY. SO WE'RE CURRENTLY LOOKING AT A FORMALIZED REFERRAL PROGRAM WHERE PEOPLE ARE ACTUALLY REWARDED FOR REFERRING FOLKS THAT COME IN AND STAY FOR A YEAR. SO I'VE HEARD OF THOSE PROGRAMS IN THE PAST.

THERE'S BEEN A LOT OF THOSE WHICH ARE BEING TRANSFERRED INTO THESE TYPE OF FORMAL, FORMAL PROGRAM.

THANK YOU. THANK YOU SO MUCH, ALISON.

ALL RIGHT. THANK YOU GUYS SO MUCH.

THANKS FOR HAVING ME. THAT'S RIGHT.

WE DO HAVE A 15 MINUTE BREAK.

IT'S A FEW MINUTES AFTER AND I WANT TO MAKE SURE EVERYONE HAS THE RIGHT AMOUNT OF BREAK TIME.

SO IS IT OKAY IF WE START AT 2:20 WHEN WE COME BACK? THEN WE HAVE THE COUNCIL EXPECTATIONS WITH GREG, BIG PICTURE GOALS.

THREE, THREE, FIVE FULL 15 MINUTE BREAK FOR EVERYONE TO TAKE CARE OF THEIR NEEDS.

OKAY. SO WE'LL BE BACK THEN AT 2:20.

OKAY, GREAT. THANK YOU.

THANKS, HEIDI.

WHERE'S THE SUGAR?

[03:10:13]

THANK YOU FOR BEING SO TIMELY AND I HOPE EVERYONE HAD A GREAT BREAK WITH SOME COFFEE AND SOME SWEETS AND DID WHAT IS IT CALLED, A [INAUDIBLE]?

[03:10:22]

YES, THAT'S RIGHT.

[03:10:24]

DID A GREAT SPEAKER. AND SO NOW WE HAVE OUR CITY MANAGER, MR.

[03:10:30]

CLIFTON, HERE TO GIVE US A FEW MORE PIECES OF INFORMATION ABOUT COUNCIL EXPECTATIONS.

AND LET'S GIVE HIM A ROUND OF APPLAUSE FOR BEING AN AMAZING CITY MANAGER.

YES. TAKE IT AWAY.

YEAH. THANK YOU MAYOR, VICE MAYOR, COUNCIL IN PREVIOUS RETREATS.

BUT FIRST, I WANT TO BACK UP AND JUST SAY THIS WHOLE PROCESS IS REALLY, I THINK, EVOLVED IN SUCH A POSITIVE WAY A FEW YEARS AGO.

WE WERE HEARING FROM COUNCIL DURING VERY SIMILAR RETREATS, SO NOT A LOT OF EXPRESSED FRUSTRATION, BUT GOOD SUGGESTIONS.

ONE, THEY WANTED MORE OF AN OVERVIEW OF THE BUDGET PROCESS.

THEY WANTED THE ROADMAP TIMETABLE, WHAT IS TO BE EXPECTED.

AND IT GOES A LOT TO HEIDI'S PRESENTATION THIS MORNING AND BRANDI'S AND THEN RICK'S STARTING OUT VERY HIGH LEVEL SPEAKS AT LARGE END OF THE FUNNEL.

AND THEN AS TIME MARCHES ON, WE WILL GET MORE AND MORE SPECIFIC.

I THINK IT NOT ONLY WORKS WELL FOR COUNCIL, BUT IT WORKS WELL FOR US, FRANKLY, TO BE THINKING IN THAT WAY.

OTHER SUGGESTIONS THAT WERE MADE WAS, OF COURSE, EARLY ON.

WE NEED TO UNDERSTAND PRIORITY BASED BUDGETING BETTER.

IT IS A HARD CONCEPT TO GRASP UNTIL YOU'VE BEEN IN IT FOR A WHILE AND THEN IT STARTS MAKING SENSE.

I DON'T MIND SHARING WITH YOU THAT FOR THE FIRST YEAR OR SO WITH PRIORITY BASED BUDGETING, MY EYES WERE PLACED OVER.

I HAD NO IDEA WHAT THIS IS ABOUT.

BUT I DID KNOW THAT PEOPLE WERE WERE EXCITED ABOUT IT AND IT WAS GOING TO BE A JOURNEY.

AND IT HAS BEEN. AND NOW FAST FORWARD TWO OR THREE YEARS LATER, JUST MAKING SENSE.

THERE'S A LOT OF CLARITY THAT'S COMING INTO FOCUS, AND I'M SO GRATEFUL TO SEE THAT.

CHRIS, THANK YOU FOR YOUR PRESENTATION EARLIER.

TODAY'S PRESENTATION WAS A NICE SEGUE FROM YESTERDAY'S PRESENTATION.

WE TALKED A LITTLE BIT ABOUT BIG PICTURE STUFF YESTERDAY, WHY WE ARE THE SIZE WE ARE AND WHY THE DIVISIONS AND WHAT'S THE ROLE OF COUNCIL, WHAT'S THE ROLE OF STAFF, HOW DO WE WORK TOGETHER IN THE SAME SANDBOX? VERY IMPORTANT STUFF.

AND AND THANK YOU FOR GIVING US YOUR AUDIENCE YESTERDAY AND THEN TODAY BRINGING THAT INTO THE BUDGET ARENA.

SAME COMMENT. IT'S BEEN VERY BENEFICIAL.

I ENJOY PARTICULARLY SITTING ON THE SIDE AND WATCHING THE PRESENTERS AND LISTENING TO THESE TOPICS.

I REALLY DO. I TAKE GREAT SATISFACTION IN THAT FOR REASONS ALREADY STATED, ONE IS JUST WONDERFUL TO SEE THE EXPERTISE IN THE ROOM ON DISPLAY. SECONDLY, WE HAVE AN ENGAGED COUNCIL ASKING VERY GOOD QUESTIONS AND THERE'S GOOD DIALOG AND THAT GOING BACK TO YESTERDAY MORNING'S INTRODUCTION, THAT IS THE ESSENCE OF THESE RETREATS IS TO DIALOG.

THAT'S WHAT BRINGS US TO THIS COUNCIL DISCUSSION.

IN YEARS PAST, COUNCIL SUGGESTED WE WOULD LIKE A LITTLE MORE TIME TO CHAT AT THE END OF THESE RETREATS, MAYBE SHARE SOME IDEAS. WE THINK THAT'S A VERY GOOD IDEA IN AND OF ITSELF.

TO HEAR YOUR IDEAS, WE WILL OFFER UP SOME BIG PICTURE GOALS.

YOU'VE ALREADY HEARD SOME SNIPPETS ON THOSE FROM RICK AND FROM HEIDI.

HEIDI HANSEN I HAVE TO BE CAREFUL HERE.

WE HAVE TWO HIDES IN THE ROOM.

WHAT LIES AHEAD.

AND THEN MORE RECENTLY, BRANDY, TALKING ABOUT COMPENSATION AND INVESTING IN OUR EMPLOYEES REMAINS A HUGE TOPIC.

NOT BECAUSE WE HAVEN'T MADE GROUND.

WE'VE MADE TREMENDOUS GROUND.

THE COUNCIL LAST YEAR WAS INCREDIBLE IN TERMS OF MEETING SOME NEEDS FOR OUR EMPLOYEE COMPENSATION, VERY GOOD OUTCOMES THAT WERE QUITE FAVORABLE TO OUR ORGANIZATION, BUT WE'RE NOT THERE YET.

IT REMAINS A CHALLENGE FOR US.

RECRUITMENT REMAINS A CHALLENGE.

RETENTION REMAINS A CHALLENGE.

STAYING COMPETITIVE IN THIS UBER COMPETITIVE ENVIRONMENT THAT WE ARE IN.

SO WE WOULD INVITE YOU NOW TO.

JUST TAKE YOUR THOUGHTS AND EXPRESS THEM IN WORDS FOR US.

[03:15:02]

WE WANT TO HEAR WHAT YOU HAVE TO SAY.

INTERPRETIVE DANCE. THE PLAYERS IS GOING TO DO A DANCE FOR THE RECORD.

WE'LL DO IT HERE.

YOU JUST CRACK ME UP.

THE JUST TO SET THE STAGE WILL OFFER UP WHAT WE FEEL MIGHT BE SOME TALKING POINTS, SOME THINGS.

AND I THINK WE'LL ALSO TALK ABOUT WHAT'S MINE AHEAD.

NOT TOMORROW, RICK TADDER.

BUT IN THERE YOU ARE, MY BROTHER, RICK TADDER.

SO LET'S DO THIS.

LET'S. LET'S OPEN UP SOME DISCUSSIONS.

WHAT ARE OUR PRIORITIES THAT YOU'VE BEEN HEARING FROM THE STAFF? AND THEN NOW WE WILL WANT TO HEAR FROM YOU.

YOU HAVE HEARD FROM US CLEARLY THE NEED FOR CONTINUED INVESTMENT IN OUR EMPLOYEES COMPENSATION INVESTMENT.

WE HAVE SOME CHALLENGES.

AND AND YOU HAD A GOOD HIGH LEVEL OVERVIEW OF THAT TODAY.

SOMETHING NEW THAT I WOULD ENTER INTO THE DISCUSSION, BUT SOMETHING THAT YOU'LL BE HEARING MORE ABOUT WITH OUR FACILITIES TEAM AND THERE IS A TEAM FOR FACILITIES. SCOTT OVERTON, THANK YOU VERY MUCH.

WE'VE BEEN TALKING A LOT ABOUT SECURITY.

WE'VE HAD SOME OCCURRENCES OF LATE.

NOTHING TO BE ALARMED ABOUT.

BUT I THINK THE BIGGER DISCUSSION IS ARE THINGS CHANGING FOR US IN LOCAL GOVERNMENT AND SHOULD WE BE RESILIENT TO THOSE CHANGES? ARE THERE INCREASED RISKS WITH WHAT WE DO AND DO OUR FACILITIES WHERE WE RESIDE AND DO OUR WORK AND CONDUCT OUR BUSINESS? ARE THEY SAFE ENOUGH BECAUSE OF PERHAPS SOME INCREASED RISKS OR MAYBE BETTER PHRASE, JUST BEING PROACTIVE, TAKING MEASURES NOW TO AVOID SITUATIONS? FACILITY SECURITY, MAINTAINING EXISTING INFRASTRUCTURE AND EQUIPMENT SOMEWHAT IN THE SAME REALM.

ARE WE DOING ENOUGH TO MAINTAIN OUR BUILDINGS? WE'RE ENJOYING THIS FACILITY HERE BECAUSE THERE'S BEEN AN INVESTMENT IN THE AUDIO VISUAL AND TECHNOLOGY.

THANK YOU AND YOUR TEAM FOR THIS.

EVENTUALLY, A LOT OF OUR CONFERENCE ROOMS WILL HAVE THIS ABILITY AQUA PLEXUS ON DECK AND THINGS LIKE THAT.

THE COUNCIL CHAMBERS, YOU KNOW, WE'VE MADE GREAT STRIDES IN IMPROVING OUR INFRASTRUCTURE THERE.

BUT THAT'S JUST ONE THING.

I MEAN, WE CAN TALK ABOUT TECHNOLOGY AND COMPUTER AND AUDIO CAPABILITY, STREAMING CAPABILITIES.

BUT YOU CAN BROADEN THAT DISCUSSION TO ALL EQUIPMENT.

THOSE. THE FIRE DEPARTMENT HAVE ENOUGH MATTER TRUCKS.

WE'VE INVESTED IN QUILTS OF LATE.

THAT'S BEEN GREAT.

BUT WHERE ARE WE EQUIPMENT WISE? PUBLIC WORKS.

AS WE'VE BEEN WATCHING ALL THE SNOWPLOWS AND GRATERS ENTERING AND EXITING THE FACILITY HERE.

HOW ARE WE DOING WITH THAT EQUIPMENT? ARE WE KEEPING UP WITH EVENTS LIKE WHAT WE'RE HAVING THIS WEEK? I THINK YOU CAN PUT AN EXCLAMATION POINT ON THIS WHEN YOU START TALKING ABOUT THINGS LIKE STORM WATER.

A TOPIC YOU WILL BE HEARING A LOT ABOUT AND ONE THAT HAS BEEN DISCUSSED, ESPECIALLY WITH RESPECT TO THE NOVEMBER BALLOT MEASURES THAT WERE APPROVED WITH A FAIRLY WIDE MARGIN, 76% ON PROPOSITION 41.

I DON'T QUOTE ME ON THAT NUMBER THAT SEGWAYS INTO THE LAST BULLET POINT HERE AND ONE THAT I HAVE BEEN WANTING TO REALLY GET OUT ON THE TABLE AND I'VE MENTIONED IT TO MANY OF YOU IN ONE ON ONE DISCUSSIONS.

AND I THIS IS NOT A CORRECT CLIFTON THING.

THIS IS AN ORGANIZATIONAL THING.

IT'S A COMMUNITY THING THAT WE NEED TO BE WE NEED TO GET OUR HEADS AROUND IT AND WE NEED TO BE PREPARED FOR IT.

AND WE NEED TO HAVE A GOOD PLAN FOR SUCCESS GOING FORWARD.

AND THAT IS OUR CAPITAL PROJECTS.

QUARTER BILLION DOLLARS OF SECURED PROJECTS AWAIT US WITH TIMELINES AND THAT THOSE TIMELINES ARE NOW, YOU KNOW, SHOVELS WILL BE IN THE GROUND SOON ON SOME OF THESE PROJECTS AND VERY SOON WHEN YOU THINK ABOUT THE TERM THAT YOU'RE NOW ENTERING THIS COUNCIL, THE NEWLY SEATED AND THE INCUMBENT COUNCIL, THIS COUNCIL WILL BE SEEING A LOT OF THIS STUFF IMPLEMENTED, MIGHT NOT SEE IT TO CLOSURE BECAUSE SOME OF THESE PROJECTS SPAN YEARS AND YEARS.

BUT IT'S GOING TO BE A BUSY TIME IN TERMS OF CAPITAL INVESTMENT IN OUR DOWNTOWN.

ARE REAL. THE FLAG STORM WATER PROJECT.

[03:20:02]

LAST MILE. PARDON ME, DOWNTOWN MILE.

I DON'T KNOW WHERE LAST MILE COME FROM.

I KEEP SAYING THAT THE DOWNTOWN MILE PROJECT, WHICH IS INTEGRATED WITH THE RIO THE FLAG PROJECT, THE BUELL AROUND ABOUT THE CEDAR AVENUE ROUNDABOUT, THE SPRUCE WASH IMPROVEMENTS.

DISCUSSIONS OF THAT HAPPENING RIGHT NOW THAT WILL INVOLVE DRAINAGE IMPROVEMENTS, NEW CULVERTS UNDERNEATH LINDA VISTA AND CEDAR AVENUE, AND A LONG LIST OF OTHER FLOOD MITIGATION EFFORTS THAT ARE ALL DESPERATELY NEEDED.

THE WASTEWATER PLANT WOULD KEEP HITTING ON THAT ONE.

BUT THAT'S ARGUABLY THE THE ELEPHANT IN THE ROOM.

WHEN YOU THINK ABOUT BIGNESS AND SCOPE AND COST, WHAT'S HUGE AND IS OUT THERE, THIS COUNCIL WILL BE WRESTLING WITH THAT QUITE A BIT.

THE NICE NEWS IS THE GOOD NEWS IS WE, WITH THE PASSAGE OF 441 AND SOME IMPROVEMENTS THAT ARE HAPPENING NOW.

WE'RE BUYING A LIMITED TIME CAPACITY WISE WITH OUR WASTEWATER TREATMENT, BUT IT'S A BIT OF A PLACEHOLDER.

THE BIG FIX LIES AHEAD.

JOHN WESLEY POWELL WE'RE HAVING GREAT DISCUSSIONS OF THAT ON YOUR FIVE YEAR PLAN.

WE START SEEING EXPENDITURES OF THIS IN 2025.

WE ACTUALLY THINK THAT THAT'S GOING TO MOVE UP BECAUSE WE HAVE SOME INTERESTING PARTNERSHIPS COMING TO THE TABLE.

COUNCIL THE PREVIOUS COUNCIL HEARD FROM MANY OF THOSE PARTNERS, POTENTIAL PARTNERS, THE NEIGHBORS, THE PROPERTY OWNERS OUT THERE AS TO THINGS LIKE THE ALIGNMENT OF JOHN WESLEY POWELL AND THE POSSIBILITIES OF WHAT COULD HAPPEN.

AND WE ARE MEETING ON THAT.

OUR MOST RECENT MEETING WAS EARLIER THIS WEEK.

SO STAY TUNED ON THAT.

AND THAT'S JUST A SAMPLING.

THAT IS NOT AN EXHAUSTIVE LIST.

IT'S JUST A SAMPLING OF WHAT LIES AHEAD.

WASTEWATER, STORMWATER TRANSPORTATION.

UP. THEY TOP THE LIST AND IT'S GOING TO BE A BUSY TIME.

AND IF YOU WERE TO ASK ME, OKAY, FROM YOUR VANTAGE POINT, CITY MANAGER, WHAT WHAT WHAT ARE THE BIG PICTURE PRIORITIES AS WE ARE LOOKING AT THIS NEXT YEAR'S BUDGET AND BEYOND? THIS WOULD BE MY FIRST RESPONSE IS CAPITAL PROJECTS, INFRASTRUCTURE IMPROVEMENTS, ORANGE CONES, DETOUR SIGNS, AND A LOT OF CONSTRUCTION WILL BE UPON OUR COMMUNITY AND ALL OF IT IS VERY GOOD, THE OUTCOMES OF WHICH ARE DESPERATELY NEEDED.

BUT GETTING THERE IS GOING TO BE QUITE A JOURNEY FOR ALL OF US, AND ESPECIALLY FOR OUR ELECTED BODY, BECAUSE WE ALL KNOW HOW PEOPLE LOVE CONSTRUCTION AND WHEN GOSH, I MEAN, I'LL SAY SOMETHING HERE THAT WILL PROBABLY BE A LITTLE BIT CONCERNING, I GUESS, TO HEAR, BUT THINK OF CONSTRUCTION AND THEN THINK OF A STORM EVENT LIKE WHAT WE HAD THIS WEEK AND HOW DOES ALL OF THAT LOOK? LAST YEAR WE HAD A FLOOD EVENT IN A NEIGHBORHOOD THAT WAS ALSO EXPERIENCING A SIGNIFICANT, SIGNIFICANT CONSTRUCTION PROJECT.

AND IT DIDN'T GO THAT GREAT FOR US.

YOU KNOW, I THINK WE WEATHERED IT QUITE WELL AND DID WHAT WE COULD.

BUT WHEN YOU ADD CONSTRUCTION TO THE EQUATION OF ALL OF THESE THINGS LIKE NATURAL DISASTERS AND BIG STORMS, IT JUST ADDS TO THE COMPLEXITY, RIGHT? SO ENOUGH SAID ON THAT.

IT IS A BIG PICTURE PRIORITY THAT WE IDENTIFIED ALONG WITH THESE OTHER ONES.

AND THEN THIS.

I'M GOING TO INVITE MY TWIN BROTHER TO COME ON UP AND CHAT WITH YOU A LITTLE BIT ABOUT WHAT LIES AHEAD, BECAUSE SOME OF THE THINGS YOU'RE THINKING ABOUT IN TERMS OF BIG PICTURE PROJECTS MAY ALREADY BE IN THE QUEUE.

AND WE WANTED TO AT LEAST LET YOU KNOW WHAT WILL BE DISCUSSED IN A COUPLE OF WEEKS BEFORE WE TURN IT BACK TO YOU INWARDS TO HEAR WHAT YOUR BIG PICTURE PRIORITIES MIGHT BE.

I'M NOT SURE IF I KEEP THE GLASSES OFF AND TALK LIKE YOU DO, SO I'M GOING TO GO AHEAD.

SO JUST TO FRAME US COMING BACK IN LESS THAN TWO WEEKS AND NOT ON A WEEKEND.

HERE ARE SOME DRAFT IDEAS THAT THE BUDGET TEAM HAS PUT TOGETHER, SOMEWHAT VERY SIMILAR TO WHAT WE'VE DONE IN THE PAST FEW YEARS.

WE'LL WE'LL START OFF WITH REVENUE PROJECTIONS, UPDATES, GIVE YOU THE FORECAST AND OUTLINE THE RESOURCES THAT WE HAVE AVAILABLE.

A LOT OF IT'S FOCUSED ON GENERAL FUND, BUT WE'LL HAVE YOU THAT PICTURE OF WHAT WE CAN DO IN THE COMING YEAR AVAILABLE RESOURCE, WHAT THE FIXED COSTS ARE, THE PENSIONS AND UTILITIES AND THOSE KIND OF THINGS.

WE'LL HAVE A DEEPER CONVERSATION ON INVESTING EMPLOYEES.

WHAT'S IT COST TO DO THESE MEASURES THAT WE SPOKE TO EARLIER TODAY? WHAT DOES IT COST TO MOVE THE NEEDLE ON THESE THESE TYPES OF CONCEPTS?

[03:25:04]

WE'LL GIVE YOU AN UPDATE ON THE BOND PROJECTS, THE 2022 BOND PROJECTS THAT WERE APPROVED.

WE'RE GOING TO HAVE THE FEDERAL FUNDING UPDATE THERE.

SPENT A LOT OF MONEY THAT THE CITY IS REACHING FORWARD.

THERE'S A LOT SPENT, APPLIED AND RECEIVED, AND WE GOT FUTURE REQUESTS THAT WE'RE GOING TO PUT TOGETHER SOME OF THAT CONVERSATION AND THEN THE RESOURCE NEEDS AND PRIORITIES. THAT'S REALLY THE HARD CONVERSATION ABOUT WHERE YOU PUT THESE RESOURCES TO HAVE MAINTAINING FACILITIES, EQUIPMENT AND SO FORTH.

I FOUND OUT WE'RE NOT GOING TO TALK CFP TOO MUCH AT THAT MEETING, BUT THE OPERATING CAPITAL, THE MAINTENANCE COSTS THAT WE HAVE.

WHEN I HAVE THOSE TYPES OF CONVERSATIONS, BUT THIS IS WHERE WE WANT TO SORT OF YOU COUNCIL IN TWO WEEKS, ARE THERE MORE TOPICS OR CONVERSATIONS THAT YOU WANT US TO BRING TO THE FOREFRONT FOR THIS FEBRUARY RETREAT SO WE CAN START PREPARING FOR THAT CONVERSATION? SO NO TIME TO PASS IT OVER.

SO LET'S CHECK.

SHARE WITH US YOUR THOUGHTS.

AND IT'S ALL GOOD.

ALL GOOD IDEAS.

YES. COUNCIL MEMBER MCCARTHY.

WELL, I'LL START TO SOLVE.

I'M GOING TO TALK ABOUT INVESTING IN EMPLOYEES.

WHEN I WAS IN INDUSTRY, I WAS A MANAGER AND I FIGURED I HAVE A VERY SIMPLE JOB.

I HIRED THE BEST PEOPLE AND I KEPT THEM HAPPY.

AND THAT'S MY BASIC PHILOSOPHY ON EMPLOYEES.

HIRE THE BEST AND KEEP THEM HAPPY.

SO THE SECOND POINT IS THE WATER TREATMENT PLANT WAS REAL BRIEFLY, I THINK IT WAS SIX MONTHS OR SO AGO, THE COST OF THIS COUNCIL WENT DOWN TO SCOTTSDALE AND WE TOURED THEIR WATER TREATMENT PLANT.

AND WE SAW THEY TREATED THEIR WATER, THEIR RECLAIMED WATER WAY BEYOND WHAT WE DO, AND THEY WOULD NOT PUT THE RETURNING WATER WE DID WITH THE SO-CALLED A-PLUS INTO THEIR AQUIFER.

SO. THE ONLY REASON I BRING ALL THAT UP IS TO SAY THAT AT SOME POINT WE'RE GOING TO HAVE TO IMPROVE THE QUALITY OF OUR RECLAIMED WATER BEYOND A PLUS.

IT NEEDS TO BE TO THE POINT OF BEING POTABLE.

AND I KNOW THAT'S A BIG DEAL AND I KNOW WE'RE NOT GOING TO DO IT IN THE NEXT THREE MONTHS.

BUT ANYWAY, THAT'S ON MY LIST OF THINGS THAT NEED TO BE NOT FORGOTTEN.

EXCELLENT. GREAT. ARE YOU TAKING NOTES, BY THE WAY? I AM. OKAY. I'LL WAIT FOR THEM.

NO, THANK YOU. ACTUALLY, EXACTLY WHAT WE'RE LOOKING FOR HERE ARE KIND OF THE BIG PICTURE.

YEAH, AND I DIDN'T MENTION A LOT OF OTHER THINGS THAT ARE GOING ON, LIKE FLOOD CONTROL.

OBVIOUSLY, THEY'RE CIVIL AGAINST THEM.

SO IT'S SO OBVIOUS.

I DON'T. THANKS.

WE'LL GO COUNCIL MEMBER, PARIS AND THEN COUNCIL MEMBER SWEET.

SO, SO BIG THINGS FOR ME.

AND I DON'T REALLY SEE IT SPECIFICALLY ON YOUR LIST.

WHAT IS COMMUNITY INVOLVEMENT BEFORE? BUT I DON'T KNOW, TEN, 12 YEARS AGO, WHENEVER IT WAS, I STARTED GETTING INVOLVED IN CITY STUFF AND COMING TO CITY COUNCIL.

BUT WHAT I REALIZED IS THAT A LOT OF PEOPLE DON'T THEY DON'T THINK THAT BY TO LISTEN TO THEM, THEY DON'T COME TO THE CITY COUNCIL.

THEY DON'T. THEY DON'T.

THEY DON'T. THEY DON'T. SO WHAT I'M THINKING ABOUT IS HOW CAN I HELP THE CITY DO A BETTER JOB OF BEING THAT KIND OF CONTACT? AND SO WHAT I THINK AND I'M GOING TO TRY TO DO IS GO TO WHERE PEOPLE ARE.

SO THAT MEANS, YOU KNOW, SCHOOL BOARD MEETINGS, PTO SCHOOL EVENTS FOR PARENTS AND KIDS AND STUFF ARE AND A LOT OF TIMES PEOPLE WILL TALK TO YOU WHILE YOU'RE THERE AND YOU CAN GET INFORMATION IN HERE.

AND THEN MAYBE BY ESTABLISHING SOME OF THOSE RELATIONSHIPS, YOU KNOW, PEOPLE WILL WANT TO COME OUT MORE AND VOICE THEIR OPINIONS.

I'M NOT TRYING TO GET TO THE POINT WHERE EVERYBODY'S YELLING AND SCREAMING AT YOU.

THAT'S NOT THE POINT OF THIS.

IT'S ABOUT GETTING PEOPLE INVOLVED IN THEIR COMMUNITY SO THAT IF AND WHEN WE GO OUT FOR THINGS, THEN AT LEAST PEOPLE HAVE A BETTER UNDERSTANDING, BECAUSE I CAN BET YOU THAT ALL THE STUFF THAT WE'RE TALKING ABOUT TODAY, THEY DON'T HAVE ANY IDEA ABOUT WHAT PRIORITY BASED BUDGETS ARE ABOUT.

AND MAYBE SOME OF THEM WON'T REALLY UNDERSTAND THE WHOLE PROCESS.

BUT AT LEAST IS THERE SOME WAY WE CAN START TO TALK TO PEOPLE ABOUT THAT SO THAT THEY HAVE A BETTER UNDERSTANDING OF WHAT WE'RE TRYING TO DO? SO. SO THOSE ARE THE THINGS THAT THAT I THINK ABOUT.

[03:30:01]

I GET ALL OF WHAT WE WERE TALKING ABOUT TODAY.

I DID IT NOT THIS YEAR FOR ME, BUT I CAN TELL YOU THAT THE PEOPLE THAT COME TO THE SOUTH SIDE BOARD MEETING OR THAT ARE AT SCHOOL PTO, THEY HAVE NO CLUE. AND SO THAT'S WHY I THINK PEOPLE ARE SO EASY TO CRITICIZE WHEN THE CITY DOESN'T DO THIS CITY, THIS CITY THAT BECAUSE THEY DON'T KNOW AND NOBODY'S TAKING THE TIME TO REALLY KNOW THEM.

AND THEN THE NEXT THING I WILL TALK ABOUT IS.

LET'S NOT DEPEND SO HEAVILY ON TECHNOLOGY.

BECAUSE A LOT OF FOLKS ARE NOT AS TIED INTO TECHNOLOGY AS SOME PEOPLE SEEM TO THINK.

AND AND THAT'S THE POPULATION WHO'S BEEN LEFT OUT OF THE CONVERSATION.

AND SO I'M JUST REALLY VERY AWARE OF THAT.

SO I WOULD LIKE TO FOR US TO THINK ABOUT HOW WE.

HOW WE GET STUFF OUT.

AND I KNOW YOU'RE GOING TO HEAR ME SAY THIS A LOT.

BOOTS ON THE GROUND.

BOOTS ON THE GROUND.

YOU CANNOT BE MORE EFFECTIVE THAN THAT.

AND SOMEBODY'S GOT TO DO IT.

SO THAT'S WHY I SAY THAT WE'VE GOT A WHOLE BUNCH OF NONPROFITS THAT HAVE RESOURCES THAT THEY COULD USE TO HELP US DO THAT.

BOOTS ON THE GROUND.

BUT WE'VE GOT TO FIGURE OUT HOW TO PARTNER WITH THEM SO THAT THEY CAN HELP US DO THE JOB THAT WE NEED TO DO.

SO THAT'S MY $0.02 AND A GOOD $0.02.

IT IS. AND PERHAPS THOSE TWO COME TOGETHER.

THE NEED TO ENGAGE OUR COMMUNITY AS A WHOLE IN THE NEED TO ENGAGE THOSE WHO DON'T HAVE ALL THE TECHNOLOGY CONVENIENCES AT THEIR FINGERTIPS.

SO VERY WELL STATED.

THANK YOU, COUNCIL MEMBER SWEET.

SO EVERYTHING WAS ON MY LIST.

HOWEVER, THE SECURITY ASPECT WASN'T.

SO I'M SURPRISED TO SEE THAT ON THERE.

BUT GLAD THAT WE'RE TALKING ABOUT IT.

I DID THE RIDE ALONG WITH LYLE AND FOR THE SNOWPLOW.

WE WERE TALKING ABOUT HIS JOB.

HE'S BEEN WITH THE CITY FOR A WHILE AND LOVES HIS JOB.

THE ONE THING HE SAID THAT MIGHT DRIVE HIM OUT, THE COST BENEFITS.

AND I JUST WANTED TO BRING THAT UP.

HE'S NOT MAKING ENOUGH TO PAY FOR THE HEALTH INSURANCE.

SO IT'S SOMETHING THAT I RESONATED WITH ME.

I WOULD HATE TO LOSE MY VOICE FOR THAT REASON.

AND FOR ME, THE WASTEWATER PLANT IS TOP OF MIND FOR SURE.

AND I THINK WE NEED TO HAVE A SOLID PLAN ON THE FIRST TOPIC.

THANK YOU SO MUCH FOR RAISING THAT IS COMING YOUR WAY.

THE EAC HAS BEEN SPENDING A LOT OF TIME TALKING ABOUT BENEFITS, OF COURSE.

NO SURPRISE THERE WILL BE AN INCREASE IN INSURANCE COVERAGE.

HEALTH COSTS OF THE APPROACH IN THE PAST HAS BEEN DOES THE CITY PICK UP THAT INCREASE OR IS IT SHARED PROPORTIONATELY? THERE'LL BE RECOMMENDATIONS COMING TO YOU.

SO THAT'S A VERY MUCH ALIVE DISCUSSION RIGHT NOW.

SO THANKS FOR THIS, COUNCIL MEMBER.

SO INVESTING IN EMPLOYEES IS A BIG ONE FOR ME BECAUSE IT TIES INTO OUR AFFORDABLE HOUSING.

IT'S NOT JUST THE UNHOUSED AND THE LOW INCOME RESIDENTS WE HAVE HERE, BUT OUR MIDDLE INCOME RESIDENTS BECAUSE OF THE COST OF HOUSING. IF WE CAN ELEVATE, WE NEED TO.

I FEEL LIKE WE NEED TO BE A LEADING EXAMPLE OF AT LEAST PAYING THAT LIVING WAGE.

AND IT'S HARD TO HEAR THAT WE HAVE WORKERS THAT MAY HAVE TO MOVE OUT BECAUSE BETWEEN HEALTH CARE COSTS AND THEN WHAT THEIR RENTS ARE, BECAUSE THEY DON'T MAKE ENOUGH FOR THAT, WE'RE NEVER GOING TO BE AN EXPENSIVE PLACE TO WORK.

BUT IF YOU ARE SENSITIVE TO THAT AND THEN OF, YOU KNOW, KIND OF PIGGYBACKING ON WHAT COUNCILMEMBER HARRIS SAID, PUBLIC PARTICIPATION HAS BEEN ON MY RADAR A LOT, TOO.

AND I KNOW THAT WE'VE MADE GREAT STRIDES IN THAT WITH OUR SOCIAL MEDIA VIDEO THAT WE'RE DOING AND ALL THOSE DIFFERENT AVENUES.

SO WHEN I LOOK AT THESE SURVEYS THAT HAVE CAME IN FRONT OF COUNCIL AND OTHER AVENUES AND IT'S LIKE 300 PEOPLE RESPONDED TO THE SURVEY, WELL, WE HAVE 80,000 PEOPLE HERE, 80 PLUS, WHATEVER IT IS.

AND SO IS THAT A REAL GOOD REPRESENTATION WHEN WE'RE MAKING DECISIONS? WELL, THE COMMUNITY WANTS THIS.

WELL 150 OR CAN WE DO A BETTER COMMUNITY PARTICIPATION OUTREACH? SO WE REALLY KNOW WHAT THE COMMUNITY WANTS BECAUSE THAT BEING A NEW COUNCIL MEMBER I STRUGGLE WITH HOW WILL I KNOW IS SOMETHING I PERSONALLY AM PASSIONATE ABOUT, OR IS IT BECAUSE I'M WORKING FOR THE COMMUNITY NOT BY PUTTING MY INTERESTS FORWARD.

[03:35:01]

SO I WOULD FEEL MORE COMFORTABLE WHEN WE'RE MAKING DECISIONS TO KNOW A BIGGER, A BIGGER SLICE OF THE COMMUNITY HAVE SAID THIS IS WHAT WE WANT AND MAKE SURE THAT'S JUST A RECONCILIATION WITH MYSELF TO MAKE SURE IT'S NOT SOMETHING I JUST WANT TO PUT FORWARD.

AND THEN LAST BUT DEFINITELY NOT LEAST, IS EQUAL IS THE CAPITAL IMPROVEMENT TIMELINES LIKE J.W.

POWELL? I WATCHED THE COUNCIL MEETING WHERE FOLKS FROM POOR STREET HAD DECIDED THEY DIDN'T WANT THE ROAD EXTENSION GROWTH GOING THROUGH THERE.

SO WE CHANGED IT AND IT'S LIKE, OH YEAH, BECAUSE IT TOOK 20 YEARS TO GET TO THIS POINT, YOU KNOW? AND SO UNDERSTANDING WHY AND I KNOW FEDERAL FUNDING AND WHEN WE DO BONDS, IT'S ONLY THE PERCENTAGE OF THE WHOLE PROJECT.

AND JUST HAVING A BETTER UNDERSTANDING OF MAYBE TALKING ABOUT WAYS TO STREAMLINE THAT.

SO WHEN WE MAKE A DECISION AND THE VOTERS VOTE FOR SOMETHING, IT DOESN'T TOTALLY LOOK DIFFERENT BY THE TIME WE'RE READY TO IMPLEMENT IT.

AND THEN WE HAVE UNHAPPY COMMUNITY MEMBERS BECAUSE THE CYCLE WAS 20 YEARS AGO, LIFE IS TOTALLY DIFFERENT FROM NOW.

SO AND I DON'T KNOW IF THAT'S JUST THE NATURE OF THE BEAST WHEN YOU'RE DOING BOND PROJECTS OR CAPITAL IMPROVEMENT PROJECTS.

BUT YOU KNOW THAT WE HAVE SO MUCH INFRASTRUCTURE WASTE, STORMWATER DRAINAGE AND STUFF AND THE WASTEWATER PLANTS AND STUFF THAT I JUST I'D LIKE TO HAVE A BETTER UNDERSTANDING AND MAYBE TALK ABOUT HOW TO STREAMLINE THAT FASTER SO WE CAN BE MORE REACTIVE.

COMMENTS. COUNCILMEMBER HOUSE.

THANKS. SO I KNOW YOU AND I TALKED JUST THE OTHER DAY AND YOU ASKED ME TO KIND OF HOLD ON SOME OF THIS, BUT CERTAINLY FOR ME, HOUSING IS ONE OF THE BIG ONES. AND I BELIEVE WE'RE GOING TO HAVE SOME CONVERSATIONS ABOUT DIFFERENT THINGS THAT ARE COMING DOWN THE PIPE.

BUT I REALLY THINK THAT IT TIES INTO SO MANY OF THE THINGS THAT WE'RE TALKING ABOUT, PARTICULARLY.

I THINK YESTERDAY IT WAS MENTIONED THAT WE'RE WE'RE HAVING TO LOOK AT EXPANDING WHERE WE GET THOSE FOUR COMMISSIONS AND DIFFERENT EMPLOYMENT OPPORTUNITIES BECAUSE THEY CAN'T AFFORD TO LIVE.

THAN OTHER CITIES, AND THAT CERTAINLY CONTRIBUTES TO RECRUITMENT EFFORTS AS WELL.

IF FOLKS CAN'T FIND A PLACE TO LIVE TO TAKE THE JOBS THAT THEY'RE SEEKING HERE IN FLAGSTAFF.

SO JUST FINDING WAYS TO REALLY GET INNOVATIVE ON WORKFORCE HOUSING, LOOKING AT HOW TO STREAMLINE SOME OF THE PROCESSES AND THE DEVELOPMENT OF A DIVERSIFIED RANGE OF HOUSING TYPES AND ALL OF THOSE SORTS OF THINGS.

AND REALLY LOOKING AT HOW WE CAN EXPAND ACCESS TO HOUSING TYPES IN ALL OF OUR NEIGHBORHOODS, IN COMMUNITIES SO THAT WE'RE REACHING JUST ACROSS THE SPECTRUM OF WHAT THAT IS.

ALSO FOR ME, I THINK A BIG ONE IS JUST COMMUNITY ENGAGEMENT AND INVESTMENT.

IT'S BEEN TALKED ABOUT ALREADY, BUT REALLY JUST FINDING WAYS TO CONNECT WITH PEOPLE WHERE THEY ARE AND FINDING WAYS TO.

JUST MEET THEM IN THE WAYS THAT THEY NEED TO, THAT WE'RE ACTUALLY MEETING THE NEEDS OF THOSE SPECIFIC NEIGHBORHOODS OR SPECIFIC COMMUNITIES AND DEMOGRAPHICS I JUST SAW AND I'M NOT REALLY REMEMBERING WHERE THIS WAS, I THINK IT WAS ON FACEBOOK, A CONVERSATION JUST RECENTLY.

BUT AGAIN, THE CONVERSATION OF NOT BEING ABLE TO ENGAGE WITH COUNSEL BECAUSE AT THE TIME OF OUR MEETING.

AND SO I'M NOT SUGGESTING THAT WE CHANGE THAT TIME, BUT IT DOES SUGGEST TO ME THAT THERE MAY BE OPPORTUNITIES FOR US TO FIND OTHER WAYS TO NOT EXPECT THE COMMUNITY TO COME TO US, BUT FOR US TO GO TO THE COMMUNITY AND SHOW THEM WE WANT TO HEAR FROM YOU, WANT TO BE WHERE YOU'RE AT.

WE WANT TO ENGAGE WITH YOU THAT WE'RE ACTUALLY MEETING THE NEEDS THAT ARE THE TRUE PRIORITIES OF.

THANK YOU FOR THAT ONE.

THE MEATY TOPIC THAT YOU MENTIONED I SEE SERVED OR ONLINE.

AND IF YOU COULD BE PREPARED TO COME IN AND CHAT ABOUT WHEN YOU'LL BE PRESENTING ON THE HOUSING TOPIC IN FRONT OF COUNCIL, I KNOW THAT'S IN THE QUEUE AND THAT COULD BE HELPFUL ON THE TOPIC OF TIME OF MEETING.

THAT'S A COUNCIL DECISION AND ONE THAT CAN BE REVISITED.

BUT I DO WANT TO SHARE WITH YOU THAT WE VERY DELIBERATELY TRY TO NOT PUT VERY WEIGHTY TOPICS ON THE AGENDA BETWEEN THREE AND 5:00, YOU'RE GOING TO HAVE A LOT OF INFORMATIONAL SHARING AND CITY MANAGERS REPORTS AND WORK ANNIVERSARIES AND GOOD STUFF, OF COURSE. BUT IF IT'S A WEIGHTY TOPIC THAT WE THINK WILL GARNER THE INTEREST OF A LARGE PART OF OUR COMMUNITY, WE TRY TO SAVE

[03:40:04]

THAT FOR LATER IN THE MEETING.

THAT SAID, CORRECT.

YOUR PLEASURE ON THIS.

IF COUNCIL WANTS TO SWITCH UP THE TIME OF MEETING, I SUGGEST WE GIVE IT A LOT OF THOUGHT AND BE VERY OUTWARD WITH OUR MESSAGING SO PEOPLE KNOW BECAUSE IT WAS A BIT OF A CHANGE LAST TIME AND YOU DON'T WANT TO BE IN THE ROUTINE OF CHANGING VERY OFTEN, BUT IT IS YOUR CALL AND WE'RE AT YOUR PLEASURE. SARAH DAR, ARE YOU WITH US? AND IF SO, CAN YOU JUMP ON? AND BEFORE SHE DOES.

JUST TO BE CLEAR, I AM NOT SUGGESTING THAT WE CHANGE THE TEXT.

THAT'S WHAT I'M JUST TALKING ABOUT, EXPANDING HOW WE REACH OUT TO THE COMMUNITY TO GIVE THEM MORE OPPORTUNITIES TO ENGAGE IN ACTION RATHER THAN HAVING TO MAKE IT ONE DIVIDED BY EIGHT. I DON'T KNOW THAT BECAUSE.

STACEY SALTZBURG WE HAVE HOUSING QUEUED UP TO PRESENT TO COUNCIL.

WE DO. I THINK WE ARE GOING TO HEAR FROM THEM, I BELIEVE, AS EARLY AS FEBRUARY 14.

THAT'S THE DATA OVERVIEW OF THE PROGRAM AND THEIR TEN YEAR PLAN.

YEAH. SO COMING YOUR WAY COUNCIL MEMBER AND I THINK MANY OF THE QUESTIONS YOU ASKED HOPEFULLY WILL BE CAPSULATED IN THAT PRESENTATION. IT WILL BE VERY COMING YOUR WAY ON FEBRUARY 14.

WELL, WE ALSO. I'M SORRY.

ONE MORE THING RELATED TO THAT.

I APOLOGIZE, MCCARTHY.

I REMEMBER WITH THE PAST YEAR'S BUDGET, THERE WAS THE CONVERSATION ABOUT IT WAS SOMETHING THAT WAS ALLOCATED TO THE EXAMINATION OF I THINK IT WAS MAYBE THE ZONING CODE IN RELATION OR PARTNERSHIP BETWEEN HOUSING AND MAYBE SUSTAINABILITY.

AM I REMEMBERING THAT CORRECTLY, AND IS THAT SOMETHING THAT'S GOING TO CIRCLE BACK OR? YEAH, WE WILL CIRCLE BACK ON THAT, REFINING THE CODE TO BETTER ACCOMMODATE HOUSING AND SUSTAINABILITY OBJECTIVES? YEAH, WE WILL FOLLOW UP ON THAT AND KEEP THAT INTO THE DISCUSSION COMING YOUR WAY.

YES. OH. SO JUST A REAL QUICK POINT.

YOU MENTIONED THAT WE PUT THE ITEMS THAT THE PUBLIC MAY HAVE WERE INTERESTED IN LATER.

YOU TRY TO DO WHAT WE ALSO COULD DO IS SAY THIS ITEM WILL NOT BE DISCUSSED BEFORE 6:00, BECAUSE USUALLY THAT WOULDN'T BE A

[5. Public Participation]

PROBLEM AT ALL FOR US.

BUT IT WOULD LET THE PUBLIC KNOW IT'S MEETING STARTS AT 3:00.

BUT THIS ISN'T GOING TO COME UP TILL 6:00 BECAUSE THEY MAY SKIPPED A MEETING BECAUSE THEY THINK, WELL, IF I'M NOT THERE BY THREE OR 330, I'LL.

THAT'S TRUE. STACEY, PLEASE COME ON UP SO WE CAN HEAR YOU ON THE MICROPHONE.

I ACTUALLY DON'T HAVE ANYTHING TO OFFER.

I JUST NOTICED THAT DAN HAS GOT HIS HAND RAISED, SO I THINK IF YOU WANTED TO WEIGH IN ON PERHAPS COUNCIL MEMBER HOUSE, THIS COMMENT.

YEAH. DAN FALK. GOOD AFTERNOON.

GOOD AFTERNOON, EVERYBODY.

I'VE BEEN LISTENING INTENTLY ALL DAY AND WE DO HAVE FUNDS IN OUR BUDGET FOR CODE REVIEW.

IT WAS CO FUNDED THROUGH SUSTAINABILITY AND HOUSING.

THOSE TEAMS ARE ALSO WORKING WITH MICHELLE MCNULTY ON OUR LAND AVAILABILITY SUITABILITY STUDY.

AND SO WE'VE PREPARED AN R, SO Q WHICH IS A REQUEST FOR STATEMENTS OF QUALIFICATIONS FOR CONSULTANT FOR THOSE TWO PROJECTS, THE CODE REVIEW AND THEN THE LAND AVAILABILITY STUDY. WE'RE GIVING AN OPTION FOR ONE CONSULTANT TEAM TO PUT TEAMS TOGETHER AND DO IT TOGETHER OR TO DO PROPOSALS ON EACH ONE SEPARATELY.

AND SO WE'RE IN THE VERY LAST STAGES OF GETTING THAT ARE Q APPROVED, AND WE'RE GOING TO PUT THAT OUT HERE AND HOPEFULLY HAVE A CONSULTANT ON BOARD LATER THIS YEAR.

AND THEN THIS CODE REVIEW IS WHAT WILL LEAD TO CODE AMENDMENTS THAT I KNOW HAS COME UP IN THE LAST FEW WEEKS AS WELL.

THANKS. ARE YOU WEARING TODAY? I'M NOT. AND WHEN I PUT THIS ON, I WAS REALIZING YOU'RE PROBABLY GOING TO WANT TO SEE SOME FLANNEL.

I MEAN, THERE'S NOTHING MORE COMFORTABLE THAN FLANNEL, ESPECIALLY ON A SNOWY DAY WITH NOTHING BETTER THAN FLANNEL.

BUT I AM COMFORTABLE. THANK YOU.

AND I HOPE EVERYONE STAYS SAFE AND WARM.

THAT'S FOR THE RECORD. DAN IS IN HIS BATHROBE.

I WHAT YOU'RE WEARING? YEAH. JUST A FOLLOW UP ON COUNCIL MEMBER MCCARTHY COMMENT.

WELL, WE JUST SAW A MEETING WHERE WE COULDN'T TAKE UP AN ITEM UNTIL 7:00 PM DUE TO LEGAL REASONS.

THERE'S NO REASON YOU CAN'T DO THAT WITH OTHER WEIGHTY, CONTROVERSIAL, WHATEVER YOU WANT TO CALL THEM, AGENDA ITEMS. AND THEN IF WE GET TO THAT POINT, MOVE ON TO THE NEXT.

AS WE DID, WE HAD WE HAVE DONE THAT IN THE PAST.

YOU CAN YOU CAN KIND OF WORK WITH IT AS YOU GO THROUGH THIS WEEK.

SO THANK YOU.

DOCTOR. THOUGHTS, MAYOR?

[03:45:01]

I'M LOOKING YOUR WAY. ALL RIGHT.

COUNCILMEMBER HARRIS, I LOVE THE IDEA OF GOING TO THE DIFFERENT MEETINGS TO CONNECT WITH PEOPLE.

AND THANK YOU FOR THINKING OF THAT AND AND DOING THAT.

AND I THINK ALL OF US COULD PROBABLY THINK OF SPHERES OF INFLUENCE WHERE WE COULD DO THE SAME THING AND JUST MAKE SURE THAT PEOPLE FEEL COMFORTABLE TALKING TO US, WHICH I THINK THEY DO, BECAUSE WE ALREADY TALK TO PEOPLE WHEN WE'RE OUT AND ABOUT, BUT JUST BEING VERY CONSCIOUS ABOUT IT AND THEN CHANNELING MY BEST OUT OF COMMON.

AND I'M WONDER WHETHER WE HAVE A PRIORITY, PRIORITY BASED BUDGETING VIDEO THAT WALKS SOMEONE THROUGH THE STEPS THAT CHRIS TOOK US THROUGH.

CHRIS I'M GONNA TALK ABOUT THE VIDEO.

ARE YOU A STAR IN THIS VIDEO? NO, WAS BEFORE MY TIME.

LUCKILY, LUCKILY, WE DO HAVE A PRETTY, PRETTY BASIC BUDGET VIDEO THAT GOES TO THOSE STEPS.

WE CAN SHOW IT IF YOU LIKE, AND IT'S ON OUR WEBSITE, BUT IT WAS PRODUCED A FEW YEARS BACK.

GREAT. YEAH.

WONDERFUL. HOW LONG IS IT? TWO OR 3 MINUTES, MAYBE.

OH, I GOT A TEXT FROM ADAM.

AM. HI, EVERYBODY.

YEAH, I'M HERE.

YOU LET HIM IN AS A GUESS REALLY? NO, I'M JUST KIDDING. THAT WAS PRICELESS.

IT'S JUST SOMETHING THAT I'M ALSO KEENLY SUPPORTIVE AND INTERESTED IN EMPLOYEE PAY AND BENEFITS.

AND I THINK THAT WARRANTS JUST SAYING EVERY TIME WE'RE TALKING ABOUT IT SO THAT THAT STAFF CLEARLY UNDERSTANDS THAT THAT IS A PRIORITY FOR US. AND OF COURSE, THE FLOODING INFRASTRUCTURE TO AVOID FURTHER DAMAGE TO HOMES AND CITY FACILITIES.

AND I'M UNDERSTANDING THAT OUR FIRE DEPARTMENT IS QUITE THAT WE FALLEN BEHIND THE SCENES IN ACQUIRING THE NECESSARY EQUIPMENT.

SO KEEPING THAT UP THERE, HOUSING ALWAYS.

AND I'M REALLY LOOKING FORWARD TO THE BOND PROJECT DISCUSSION AND GETTING A TIMELINE AND ALSO HEARING FOR BOTH 441 AND 442 WHAT THIS CITY IS GOING TO DO TO ENSURE THAT WHAT WE PROMISED IS WHAT IS GOING TO GET BUILT. BECAUSE WE HEAR THAT A LOT FROM THE COMMUNITY.

SO. SO I WOULD LIKE THAT AS PART OF THE PRESENTATION.

AND THERE'S NOTHING REALLY THAT'S NOT A PRIORITY, WHICH IS WHY ALL OF THIS IS SO EXPENSIVE.

THESE ARE, IF YOU DON'T MIND ME, EDITORIALIZING.

I THINK VERY EXCITING TIMES FOR AN ELECTED BODY TO BE LEADING A COMMUNITY.

BUT WITH SO MUCH ON THE TABLE OF VERY EXCITING, DAUNTING BUT EXCITING.

THANK YOU. I SWEAR.

GOT YOUR TITLE RIGHT.

I REALLY FIND MYSELF IN SYNERGY WITH THESE BIG PICTURE PRIORITIES.

THESE ARE BIG PICTURE PRIORITIES, RIGHT? I'M NOT SURE IF FACILITY SECURITY EXACTLY FALLS INTO THAT CATEGORY.

IT SEEMS A LITTLE BIT MORE THAN THAT.

OBVIOUSLY VERY IMPORTANT.

AND I'M SO GLAD WE HAD VERY SMART PEOPLE THINKING ABOUT THAT AND BEING PROACTIVE.

AND IT'S DEFINITELY SOMETHING TO KEEP AN EYE ON AND SOMETHING TO THAT WE DON'T WANT TO REACT TO.

RIGHT. SO CAPITAL PROJECTS.

ABSOLUTELY WASTE WATER.

ABSOLUTELY. I REALLY WANT TO PUT AN EXTRA GREEN STICKER NEXT TO WHAT COUNCIL MEMBER MCCARTHY SAID ABOUT HOW WE TREAT OUR WASTEWATER AND OUR REFINED WATER. THESE INVESTMENTS WERE ON THE CUSP OF SOME REALLY EXCITING TIMES IN TERMS OF TECHNOLOGY, INVESTMENT AND ADVANCEMENTS AND EMERGING STRATEGIES AROUND WATER CONSERVATION.

WE'RE ALSO IN A VERY DANGEROUS, RISKY TIME IN TERMS OF WATER AVAILABILITY AND WATER CONSERVATION NECESSITY THROUGHOUT THE DESERT, SOUTHWEST AND BEYOND.

AND I'LL KEEP SOME OF MY OWN PARTICULAR PET PROJECTS OFF THIS LIST FOR NOW.

I'VE TALKED A LOT ABOUT FILM PROMOTION, BUT THAT'S THAT'S VERY, VERY MUCH INTO THE WEEDS.

[03:50:03]

THERE'S OTHER THINGS I COULD MENTION, TOO.

WHAT I'M DISAPPOINTED NOT TO SEE UP HERE IS JUST ALREADY WRITTEN DOWN AS SOMETHING THAT'S A GIVEN IS OUR BIG SHIFT POLICIES.

AND I DON'T WANT TO BE CONFUSED WITH SOME OF THE VERY CONTENTIOUS VOICES THAT HAVE BEEN COMING UP THROUGH THE WOODWORK THIS WEEK BECAUSE OF THIS PARTICULAR WEATHER EVENT.

BUT I DO THINK THAT, YOU KNOW, I'VE HAD THE PRIVILEGE OF NOT HAVING TO DRIVE AROUND VERY MUCH THIS WEEK, BUT I HAVE BEEN ON THE ROADS A COUPLE OF TIMES THROUGHOUT THE DAYS. AND WHAT IS VERY CLEAR TO ME AND AGAIN, I WANT TO DECOUPLE THIS FROM THE SEVERITY OF THE PARTICULAR WEATHER EVENT THAT WE'RE EXPERIENCING. BUT, YOU KNOW, WE TALK ABOUT FLAGSTAFF BEING A FORCED SEASONAL TOWN.

I'M ONE OF THE FIRST PEOPLE TO ACKNOWLEDGE THAT WE'RE ALSO A MOUNTAINOUS TOWN AND WE'RE ALSO AN OLDER TOWN.

SO NOT DRIVING IS NOT GOING TO BE A STRATEGY FOR EVERYBODY.

BUT WE ARE ALSO NOT A TOWN OF ONLY SEASONAL MULTIMODAL USERS.

THIS WEEK I HAVE SEEN SO MANY PEDESTRIANS CLIMBING OVER BERMS, STRUGGLING TO GET ON SIDEWALKS, STRUGGLING TO CROSS THE STREET AND CROSSWALKS, WALKING DOWN THE MIDDLE OF STREETS, INCLUDING WOODLAND.

JUST YESTERDAY OVER BY BY WAL MART OR I'M SORRY, HOME DEPOT, SOUTH WOODLAND IN MILTON.

THIS IS THIS IS NOT SOMETHING THIS IS NOT A PET PROJECT THAT WE DO ON BEHALF OF A NICHE COMMUNITY IN FLAGSTAFF THAT LIKE TO BIKE AND WALK DURING THE WINTER.

THIS IS A SIGNIFICANT PORTION OF OUR VERY STABLE, YEAR LONG COMMUNITY WHO ARE NOT USED TO GETTING AROUND IN CARS AT ANY TIME OF THE YEAR AND FIND THEMSELVES TOTALLY MARGINALIZED AND IN VERY DANGEROUS AND PRECARIOUS SITUATIONS DURING EVENTS LIKE THIS.

NOW, THIS WAS A BIG EVENT.

WE DON'T KNOW WHAT TO DO WITH THE SNOW THAT'S FOLLOWED THIS WEEK, AND THAT HAS CREATED PARTICULAR CHALLENGES.

I'VE HEARD ANYTHING THAT, YOU KNOW, DEPENDING ON WHERE YOU'RE AT IN TOWN, THAT THIS IS THE 12TH LARGEST ON RECORD SNOWFALL EVENT SINCE 1899, UP TO THE 22ND LARGEST EVENT SINCE 1899.

THAT'S STILL MEANS SOMETHING LIKE THIS IS HAPPENING ONCE EVERY TEN YEARS, EVEN IF MOST EVENTS ARE SMALLER.

AND WE NEED TO GET BEYOND THE IDEA OF OF MY PROJECT ON BUTLER AND HOW DO WE KEEP THAT CLEAN.

AND, YOU KNOW, IF WE'RE IF WE'RE REALLY TALKING ABOUT THIS BIG SHIFT POLICY, IT NEEDS TO PERMEATE AND IT NEEDS TO BE A PART OF OUR BUDGET DOCUMENT.

IT NEEDS TO BE PART OF THE MORAL FRAMEWORK OF WHAT WE'RE INVESTING IN IN THIS TOWN.

AND SO STRATEGIES AND EQUIPMENT AND RESOURCES FOR GETTING NOT ONLY THE STREETS CLEAR, BUT THE OTHER PATHWAYS FOR TRANSPORTATION HERE AND OUR TOWN IMMEDIATELY REALLY NEEDS TO BE FRONT AND CENTER.

AND I DON'T KNOW, MAYBE I MISREAD WHAT I WAS TALKING ABOUT.

BUT EVEN IF THIS IS JUST SERVES AS AN EXAMPLE, IF WE HAVE 5 MILLION.

OUR REVENUE SURPLUS RIGHT NOW, AND WE DON'T LIKE TO SPEND THAT STUFF ON ONGOING THINGS.

YOU KNOW, WE DO HAVE AN OPPORTUNITY TO BUY SOME MORE EQUIPMENT AND BUY SOME MORE SPECIALIZED EQUIPMENT FOR SIDEWALKS AND FOR STREET CROSSINGS AND THINGS LIKE THAT.

IT'S JUST IT'S REALLY IT'S IT'S REALLY HIT ME ON THE HEAD THIS WEEK, DRIVING AROUND HOW MANY INDIVIDUAL FLAGSTAFF RESIDENTS ARE JUST IT'S LIKE COMING OUT OF THE WOODWORK LIKE THESE PEOPLE ARE WALKING ON THE STREETS WITH CARS THAT ARE SLIDING AROUND.

AND THEY IT'S IT'S THE ONLY PATH THEY HAVE AVAILABLE.

AND WE NEED TO DO BETTER BY THEM.

THAT'S IN GENERAL THROUGHOUT THE YEAR.

BUT PART OF THE STRATEGY OF OF MAKING ALTERNATIVE MODES OF TRANSPORTATION TO CARS AVAILABLE IS MAKING SURE IT'S FULL SEASON, IT'S THROUGHOUT THE YEAR, AND THAT IT'S RESPONSIVE IMMEDIATELY TO THE SAME EVENTS THAT WE THAT WE.

THAT WE DEAL WITH WITH, YOU KNOW, AND EVEN AND AGAIN, THIS EVENT IS A LIGHTNING POLE FOR THIS.

BUT IT'S NOT IT'S NOT INDICATIVE.

IT'S IT'S JUST AN EXAMPLE.

YOU KNOW, OUR OUR STREETS AREN'T EVEN CLEAR YET.

SO IT'S NOT LIKE WE'RE PRIORITIZING ONE THING OR THE OTHER.

[03:55:04]

WE'RE JUST BEHIND UP TO OUR KNEES, LITERALLY IN THIS PROBLEM IN GENERAL.

BUT THE NUMBER OF PEOPLE WHO ARE NOT IN VEHICLES AND STILL TRYING TO GET THROUGH TOWN THROUGHOUT THE DAY IS REALLY ASTONISHING TO ME.

SO I WOULD HOPE THAT WE COULD MAINTAIN SOME FOCUS ON THAT TO AND GET SAM THE EQUIPMENT HE NEEDS.

OBVIOUSLY, THERE'S OTHER WORKFORCE CONSIDERATIONS THAT MAY BE SEASONAL FOR THAT, TOO, BUT IT'S JUST REALLY IMPORTANT. THANK YOU FOR MUCH THERE ON THE BIG SHIFT.

YEAH, THIS IS WE'RE ASKING FOR BIG PICTURE PRIORITIES, OF COURSE.

REST ASSURED THAT THAT ONE IS PRIORITY AND HAS BEEN ARTICULATED AS SUCH BY THIS COUNCIL AND THE PREVIOUS COUNCIL, AND IT HAS GONE INTO EFFECT. LOOKING FORWARD, I'VE SEEN THE REQUEST COMING FORWARD TO THE BUDGET TEAM, REFERENCES TO THIS RESOURCE ALLOCATION AND A NUMBER OF OTHER THINGS.

SO IS VERY MUCH ALIVE AND DOING WELL.

BUT YOU RAISE A NUMBER OF OTHER POINTS THAT ALSO FOLLOW UP TO THAT OR RELATED TO THAT, AND THEY NEED TO BE ADDRESSED AS WELL.

THIS STORM HAS HAS PACKED A PRETTY GOOD PUNCH, I THINK FOUR OUT OF THE LAST FIVE DAYS WE'VE HAD SNOWFALL AND THREE OF THOSE HAVE BEEN OVER 12 INCHES OF SNOWFALL.

NOT TO PROVIDE ANY EXCUSES, BUT THIS STORM HAS HAD A GOOD STORM.

TAKE NOTE THAT THE WEATHER REPORT TODAY SAID THAT THE WARNINGS EXPIRED AT 2:00.

SO I THINK WE SHOULD EXPECT TO SEE BLUE SKIES AND SUNSHINE HERE, BUT IT'S NOT EXACTLY HAPPENING.

BUT YEAH, IT HAS BEEN.

AND I'VE SEEN WHAT YOU'VE SEEN.

PEDESTRIANS ARE STRUGGLING.

KIDS GOING TO SCHOOL ARE STRUGGLING RIGHT NOW.

SIDEWALKS ARE NOT CLEAR.

IT'S BEEN A CHALLENGE. THANK YOU FOR YOUR COMMENTS.

I THINK THAT INCLUDES THE FOOT STRESS, TOO.

I MIGHT AS WELL TAKE A SECOND TO MENTION THAT I THINK IT'S THE HOA THAT TAKES CARE OF IT IN MY NEIGHBORHOOD.

THEY USUALLY ARE VERY GOOD AT DOING THAT WITHIN ONE WITHIN 24 TO 48 HOURS OF EVEN A BIG MOMENT.

WHICH TRAILS GET CLEARED AND PEOPLE, YOU KNOW, RECREATION ISTS AND WALKERS AND DOG WALKERS ARE ABLE TO USE THOSE JOGGERS IMMEDIATELY.

THAT SHOULD BE JUST STANDARD PRACTICE THROUGHOUT THE ENTIRETY OF OUR NETWORKS.

I WOULD DISAGREE. AND IT'S A IT'S A MATTER OF RESOURCES.

YES. FOR A LOT OF VERY IMPORTANT DISCUSSIONS AND UPDATES ON THIS AND THE BIG SHIFT.

SEPARATE CHANNELING OF TESTIMONY HERE, WAITING TO HEAR THAT BOOMING VOICE COME ACROSS.

THANK YOU.

NOT EXACTLY BOOMING, BUT OTHER COMMENTS.

OTHER COMMENTS BY ANYBODY IN THE ROOM OR ONLINE, PLEASE.

I WAS JUST GOING TO MAKE A SUGGESTION.

I MEAN, I'VE ALWAYS TRIED TO THINK OUTSIDE OF THE BOX, BUT, YOU KNOW, WE HAVE A LOT OF PEOPLE WHO, WITH HELP. DO WE HAVE ANY WAY OF OF DOING LIKE TEMPORARY WORKERS, PEOPLE LIKE THAT? BECAUSE WHAT I'M THINKING ABOUT IS A LOT OF STUDENTS CAME BACK, A LOT OF OUR FRATERNITIES.

YOU KNOW, THEY COULD GET RID OF SOME OF THAT EXCESS ENERGY THAT THEY MIGHT HAVE STORED UP SOMEWHERE SO THEY COULD NOT GET IN TROUBLE DURING THIS TIME.

BUT I'M JUST WONDERING, IS THERE A WAY TO HIRE TEMPORARY WORKERS THROUGH A.

IT'S LIKE A COMPANY OR SOMETHING.

I DON'T KNOW. YES.

SO DO YOU HAVE TEMPORARY EMPLOYEES? CAN WE DO MORE CREATIVE THINGS? I THINK SO. THERE'S BEEN A LOT OF DISCUSSION IN THE LAST COUPLE OF YEARS, COUNCIL MEMBER, ABOUT REALLY ENHANCING OUR INTERNSHIP OPPORTUNITIES AT THE CITY.

WE HAVE A GREAT UNIVERSITY AND A GREAT COMMUNITY COLLEGE IN OUR COMMUNITY.

AND ARE WE DOING ENOUGH TO PROVIDE FOR TEMPORARY WORK ARRANGEMENTS WITH STUDENTS AND THEY CAN COME IN, MAYBE EARN A LITTLE BIT OF A STIPEND, POSSIBLY GET SOME COLLEGE CREDIT, DO SOMETHING MEANINGFUL TO ENHANCE THEIR CURRICULUM? I THINK THERE'S A LOT OF OPPORTUNITY THERE.

THANK YOU FOR THAT.

OTHER COMMENTS OR QUESTIONS? HOW ARE WE DOING TIME WISE? FACILITATOR. WELL, I DIDN'T HAVE A TIME FOR THIS DISCUSSION, SO WE'RE.

[04:00:01]

WE'RE AT 311 NOW.

WE WERE SUPPOSED TO BE DONE AND RICK TOOK US OVER.

I KNOW. I GOT GOLD STARS TODAY.

HEARING TIME MAYBE TO OPEN IT UP TO SEE IF THERE'S ANY PUBLIC PARTICIPATION.

IT'S A GOOD TIME FOR ME TO TURN IT BACK OVER TO YOU.

AND GOSH, IT'S FRIDAY AFTERNOON.

DO YOUR MAYORAL THINGS AND BRING THIS MEETING TO CLOSURE.

MAYOR FLETCHER.

SO AT THIS TIME, I WOULD LIKE TO CALL FOR ANY PUBLIC PARTICIPATION.

WE DO HAVE ONE ONLINE PUBLIC PARTICIPATION.

MR. ADAMS, GO AHEAD AND UNMUTE YOUR CAMERA.

DO YOU HAVE A FRIEND WITH A BOOMING VOICE, PLEASE? HEY, EVERYBODY, LET ME GO AHEAD AND START MY THREE MINUTE TIMER.

HOW ABOUT THAT? GOOD AFTERNOON, MAYOR AND VICE MAYOR AND CITY COUNCIL MEMBERS, STAFF AND LEADERSHIP MEMBERS OF THE PUBLIC.

IT'S GREAT TO BE HERE WITH YOU.

WHAT A AWESOME TWO DAY RETREAT YOU ALL JUST HAD.

FELT LIKE I WAS WITH YOU ALL THE WHOLE TIME AND REALLY APPRECIATE ALL THE GREAT INSIGHTS AND CONVERSATIONS THAT WERE HAD.

I'M ACTUALLY SPEAKING TO YOU TODAY AS A BOARD MEMBER OF THE FLAGSTAFF BIKING ORGANIZATION AND ON BEHALF OF THE BOARD WITH MY COMMENTS, I THINK A LOT OF YOU MIGHT HAVE SEEN MY LETTER THAT IS SPEAKING TO THE TRANSPORTATION COMMISSION LETTER OF SUPPORT FOR FUNDING THAT COUNCIL MEMBER MCCARTHY KNOWS ALL TOO WELL ABOUT THAT. THE BICYCLE ADVISORY COMMITTEE AND THE PEDESTRIAN ADVISORY COMMITTEE ARE ALL SIGNING ON TO.

SO I JUST BRING THAT UP TO MENTION THAT I REALLY HOPE THAT THAT COULD BE PART OF YOUR NEXT BUDGET RETREAT CONVERSATION BECAUSE IT DOES OUTLINE THREE NEW POSITIONS AND WHERE THOSE POSITIONS WOULD SIT AND ALSO FUNDING FOR THE BIG SHIFT.

THANK YOU, VICE MAYOR AND VISION ZERO MOVING PROGRAMING MOVING FORWARD.

THERE ARE ALSO FIVE KEY PROJECTS THAT THE LAST COUNCIL FUNDED AT A 15% DESIGN AND THEY INCLUDE THE BUTLER BIKE PILOT AND THE ELEVATION OF THOSE LANES THAT WOULD ALLOW FOR EASIER, MORE EFFICIENT SNOW MAINTENANCE.

BECAUSE EVEN IF WE HAD THE EQUIPMENT, I THINK SAM COULD AGREE WE'RE NOT GOING TO BE ABLE TO MAINTAIN THOSE TO THE SAME PRIORITY THAT I THINK OUR COMMUNITY NEEDS US TO.

SO WITH A TEN FOOT WIDE FOOT TRAIL ALONG BUTLER STREET, NOT ONLY DO WE HAVE SEPARATE INFRASTRUCTURE, BUT WE HAVE THE ABILITY TO MAINTAIN EASILY WITHIN PARKS. AND SO THAT'S ONE OF THE FIVE KEY PROJECTS.

BUT THERE'S SMALL MONEY RELATIVE TO ENGINEERING PROJECTS, BUT I REALLY HOPE THAT THOSE FIVE PROJECTS COULD BE DISCUSSED AT YOUR NEXT BUDGET RETREAT.

AND AND THEN IN REGARDS TO MAINTENANCE, I DON'T KNOW IF THIS IS THE RIGHT TIME TO REALLY PROVIDE THIS COMMENT, BUT I DO WONDER HOW MANY PASSES HAVE BEEN MADE AT BIKE AND PEDESTRIAN ROUTES VERSUS VEHICLE ROUTES.

MY GUESS IS CLOSE TO NONE.

YOU KNOW, I THINK THE PEDESTRIANS ARE REALLY STRUGGLING.

THANK YOU, VICE MAYOR AND OTHERS WHO SPOKE TO THAT.

I'VE WITNESSED THEM. I'VE BEEN PART OF THEIR CATEGORY AND I JUST DON'T SEE US AS A CITY ADDRESSING THOSE.

SO I'M NOT SURE IF THAT'S A BUDGET DISCUSSION OR NOT, BUT IF IT IS, I'D LOVE FOR THAT TO BE PART OF THE DISCUSSION AND HOW THOSE PRIORITIES MATCH THE PRIORITIES THAT ARE BEING SET IN OUR ENGINEERING STANDARDS AND ROAD DESIGNS.

BUT JUST WANTED TO ADD THOSE COMMENTS.

WONDERFUL JOB, EVERYONE.

WELCOME TO THE NEW MAYOR AND COUNCIL AND GO ENJOY THE REST OF YOUR WEEK AND THANK YOU STAFF AND THANK YOU EVERYONE.

2 MINUTES, 40 SECONDS.

HOW'S THAT? THAT'S WORTH CELEBRATING IT.

THANK YOU, MR. SHIMONI.

THANK YOU ALL. I DID NOT HAVE ANY OTHER PUBLIC COMMENTERS.

ALL RIGHT. THANK YOU SO MUCH.

WELL, THANK YOU ALL FOR A WONDERFUL TWO DAYS.

THIS WAS FANTASTIC.

AND I THINK A GREAT WAY TO WELCOME NEW COUNCIL MEMBERS INTO THE FOLD.

AND I HOPE EVERYONE HAS A WONDERFUL WEEKEND AND WE ARE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.