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Event transcript
We'll call the meeting to order. 00:00:01
#1 welcome. 00:00:06
I feel very welcome. 00:00:08
I apologize for missing last week. I assume it was. 00:00:14
It was a budget. 00:00:18
We'll start talking about it next week. 00:00:21
And that begins with the overview. So I'll just turn it over to Gene and we'll start. This is the first time, I think 3. 00:00:25
We'll basically have three work sessions today, next week and then. 00:00:33
We'll have a public hearing on the six foot. We'll also go into work session again and just usually if there's any loose ends we 00:00:39
need to type before we. 00:00:43
Is this the set 6? 00:00:51
So voted on the 13th and that would be. 00:00:54
You have like to you can stretch it out another meeting. 00:01:00
But I'm not Ant hesitating to do that. 00:01:06
Oh. 00:01:12
All right, so I hope we've all had a chance at least. 00:01:16
Overlook the budget document that you received last week. 00:01:20
We're going to spend some time just looking at some high level numbers and explanations and then. 00:01:25
Break it down. 00:01:33
Into presentations that in the next three weeks, starting with Sarah this evening. 00:01:36
So overall the budget that you received, the tentative budget for all funds is about $44 million? 00:01:41
Get too attached to that number and and generally we just talk about this. 00:01:51
A lot of sources with the exception of the storm water fund which is has its own source of revenue and the RDA, many of the other 00:01:59
funds, capital projects and that sort of an art really receive as revenue money from the general fund. So that $44 million double 00:02:07
count dollars. 00:02:14
Which is why I don't spend too much time for talking about it. 00:02:24
And we're going to focus this evening on the general fund. So that that's where what I want to look at. 00:02:29
And this this chart looks at the revenue sources into the general fund over time. 00:02:37
If this this picture would be pretty consistent if we went back another decade. 00:02:46
Taxes, property tax and sales tax are about 80% of revenue into the general fund. 00:02:52
We receive. 00:03:01
About 8% of general funds dollars from intergovernmental sources, that's primarily our Class C or gas tax, allocation of your tax 00:03:03
and some other revenue sharing opportunity. 00:03:09
About 8%. 00:03:17
Pretty consistent numbers for business licenses and building permits over. 00:03:21
Time at about 4%. 00:03:26
Thank you. 00:03:34
Justice Court revenue again at about 4%. 00:03:36
And then some small dollar charges for services. 00:03:40
Road cuts. 00:03:45
That sort of thing. 00:03:47
On the expense side, looking at the general fund fire department, I don't think this chart is going to surprise any of you. Police 00:03:57
is how largest share of our general fund budget is about 35% and fired about 14%. So between the two public safety. 00:04:08
Contracts that account for about 50% of our general fund budget. 00:04:20
Police and fire participants. Those are the 2 biggies. 00:04:29
Public service is that ratio of like 2 1/2 to one. 00:04:34
Leased fire has it always been that big a gap or is police is really proud I would if I just off the top of my head I think fire 00:04:39
used to be closer to 17% so that the public services I think was it. 00:04:48
Used to be at the 14 and fire was 17. 00:04:57
I think fire has grown slower overtime for a variety of reasons, leases growing quicker, public services. 00:05:03
Right now, does that include? It does include everything that Jared doing, but the larger. 00:05:13
In the general fund, the largest component is really that contract. 00:05:22
Services. So those are the three big areas. Not departmental is. 00:05:31
It's a constructed department and really includes 2 large functions that are transferred to the capital project fund and are 00:05:38
transferred to debt service fund. 00:05:44
That's where those two items both are debt service payments and how we pay for capital projects if we don't have a bond. 00:05:51
Are in that non departmental category. We also have a few other smaller items. 00:06:02
You'll see happy, healthy holidays expenses. Our 4th of July celebration is there. We'll talk about that one night that that's the 00:06:12
kind of the category of expenses you'll see there. 00:06:17
Other than that, these expenses again were made pretty consistent over time. Community and economic development about 5%, justice 00:06:24
Court of about 5%. Administration is actually growing a little this year and we'll talk about the reasons for that. 00:06:32
Another evening. 00:06:42
That's about the city attorney's budget and the city. 00:06:44
Looking at the budget from the general fund a different way. 00:06:54
High expense type. This really highlights our model of providing services and. 00:06:58
You see that when you look at how we spend money by type. So about 70% of the money that we send out of the general fund is going 00:07:07
to be charged for service. Police, fire, public works. 00:07:14
City Attorney. 00:07:22
And about. 00:07:24
Less than 15% is actually for staff in primarily in this building that are providing direct services. 00:07:26
This half of the building, that's right. 00:07:36
About 11 percent is of our overall budget is in those contributions and transfers to other funds that are references. 00:07:42
Either transferring to the Arts Council. 00:07:50
Fund or to get service capital projects. 00:07:54
A little less than 5% on operations engagement. 00:07:59
Paper stationary and some non capital improvements to the. 00:08:05
Enough other expenses. 00:08:12
But far and away our largest. 00:08:14
Type of expenses or those charges from services from other agencies. 00:08:17
So just for perspective, I looked at a couple of other cities to show you what that pie would look like. 00:08:26
Depending on how services are provided. So in West Jordan that is a pretty traditional. 00:08:34
City and then they provided police and fire services. 00:08:42
70% of their expenses in the general fund for personnel. 00:08:46
25% or for operational costs? 00:08:53
Sandy, this is a different model. 00:08:58
But a lot of their services also provided directly in about half of their expenses. 00:09:02
Personnel related so. 00:09:09
Were really different in that respect from a lot of other communities. 00:09:11
And Sandy is like. 00:09:15
2 1/2 times outside, they're bigger than that, or more. Three or three times and one of those. 00:09:17
The web Jordan is also a first classity. I think they're. 00:09:22
Shell. 00:09:27
Most of those. 00:09:29
Other expenses are essentially our police and fire, right? So that ends up being personnel. 00:09:31
Really, it's just how you spend the dollars. That's right. And that would be an interesting exercise at some point. 00:09:37
Looking at those contracts, if you if we took those personnel services part of those budget. 00:09:50
How that would look? 00:09:56
It does mean that you as a council have less control of this person dollars. That either happens in the case of public works at 00:09:58
the County Council level or at the USA board or. 00:10:04
So looking at that 14%? 00:10:16
And really down into our own personal costs. 00:10:19
So we said about 3.5 million or will in fiscal. 00:10:23
About 65% of our costs are related to wages. 00:10:31
Salary and 30% of benefits. 00:10:38
I'm just going to point out here that that means we're providing a very rich benefit package for our employees. 00:10:43
Our health insurance, for example, we pay 90% of the premium for single or double or family, whatever an employee selects. 00:10:50
We have a variety of. 00:11:02
Retirement system programs and we also provide a match that people. 00:11:05
Are making their own contribution to. 00:11:10
So. 00:11:17
Offer a 401K match. 00:11:19
It used to be very, very common. I think it no longer as common. 00:11:21
So no match for this soft performant care? Are they providing it with a different type of? 00:11:30
So most cities participate in URS. They think and I think what's rare is the richness of our. 00:11:35
So right now the policies that the council adopted that it's up to 5%, little match on percentage. 00:11:47
That's really one for one for one, yeah. 00:11:57
I think that's really meant to encourage. 00:12:02
Our staff to save. 00:12:06
I think of less than half of our staff. 00:12:09
Is it a benefit we realized the benefit from? 00:12:18
In your view like. 00:12:22
Do employees? 00:12:25
The tipping point on them? 00:12:27
Or is it just? 00:12:32
Something they did. I mean, that's a great question and that's something we can ask. 00:12:33
It's hard for me to answer. 00:12:39
Last year. 00:12:43
So I. 00:12:47
I don't know. I I would like to disagree with you. 00:12:49
If you feel comfortable sharing, yeah. 00:12:54
I think it's great. 00:12:58
Oh, sorry. 00:12:59
Holiday. 00:13:06
You would. I noticed that. Calculate that height to your package. That was just me though. 00:13:12
Yeah, it probably depends on the employees do like a direct level position probably. 00:13:21
Was more likely to do a 4018. 00:13:26
So our personal costs reflect 1 vacancy, which is. 00:13:40
Number of years. 00:13:49
We have also included in the tentative budget a request for one new position, which is a parks and maintenance worker position. 00:13:56
Anticipating a change in maintenance. 00:14:06
Around this road insight so. 00:14:11
The $68,000 that you see here is the reflection of. 00:14:15
More anticipated POS. 00:14:25
In an ideal world, we would be able to hire from one of our seasonal staff members. 00:14:28
But that that would be the idea. 00:14:42
You see a small dollar, about $33,000 included in additional pay. That's a placeholder for things like overtime. There are a 00:14:45
couple of physicians where we provide a language. 00:14:52
Adjustment in. 00:15:00
For people to use their language skills as part of their job, that's primarily the justice. 00:15:04
So. 00:15:12
Absolutely and. 00:15:14
So we think that spring is. 00:15:21
November, kind of. 00:15:24
So because we haven't negotiated with school district, I'm not sure at what point they would assume us taking over maintenance. 00:15:27
This is this replacement to see if that happens. 00:15:36
Placeholder for November through June and then it would and then it would increase increase the full FDE position. That's right. 00:15:41
And so this assumes this is a position is a good illustration of. 00:15:49
The richness of our benefits, because I think. 00:15:59
I included a position that's maybe $22.00 an hour. 00:16:03
But if someone is taking health insurance? 00:16:08
That almost double S the cost of the. 00:16:12
Sorry, the soup that they would be taking up. 00:16:17
Package it could need it. 00:16:22
This slide just breaks out that same personnel cost looking at. 00:16:36
Staff and elections. 00:16:42
At this table, 90% of our our percent costs are related to staff. 00:16:45
If that elected officials members. 00:16:54
Seems time to you. 00:16:56
A lot of that is. 00:16:59
Our Justice court judges. 00:17:02
Full time salary and. 00:17:07
Is the Planning Commission compensated? 00:17:12
They are, and I think that. 00:17:14
$50 a meeting. 00:17:18
I think 45, yeah. 00:17:22
In terms of major personnel changes that you will see in the budget. 00:17:31
Other adjustments. Last year we had budgeted to include GIS Manager. 00:17:43
And for that $36,000 represented I think 3 months of. 00:17:51
Salary benefits. 00:17:59
Based on the skills of people we have hired in both public services and CD, we're not going to hire that position. So the fact 00:18:01
that. 00:18:05
How we had budgeted for positions and what people are either actually being paid or what their benefit package looks. 00:18:17
That's about $61,000 in savings. 00:18:26
Increased by almost 5% this year. 00:18:31
Added to the budget. 00:18:35
Changed for most. 00:18:38
The cost of the city has actually. 00:18:42
Down this year. So that's savings of about 20,000. 00:18:44
Cancel each other out. 00:18:51
We have some market adjustments and expected promotions included in the. 00:18:53
About $32,000 and then. 00:18:58
To visit the major personnel changes. 00:19:07
Other changes that we'll be talking about. 00:19:12
Include, no surprise, your identity. 00:19:17
Change for police? 00:19:21
An increase of how I'm trying. 00:19:26
675 or close to 300,000 for USA. 00:19:29
185,000. 00:19:36
So then we have a 250 increase for or I'm sorry, A-150 increase for Republican? 00:19:48
So those are. 00:19:59
Big expense changes we'll be talking about over the next few months. 00:20:00
Now we'll go into more depth in terms of our revenue. 00:20:17
Just another look at that same. 00:20:28
General fund revenue Sources. 00:20:31
In municipal finance. 00:20:51
One of the things we try to look at is how our revenue is split. 00:20:56
Between property tax and tax and other. 00:21:04
A lot of people refer to this as a three legged. 00:21:09
School with India that you want to keep them dropped in the heat. 00:21:12
In our case, looking forward to just little 25, property tax would be about 40 percent, 39% of our general fund revenue, sales tax 00:21:17
about 30. 00:21:23
And other sources of that funding. 00:21:29
To me, this is a really healthy mix of revenue sources, property tax being the most stable revenue source. The wing is, I think 00:21:32
we've all tracked that before. The way our property tax truth and taxation is designed, it's our revenue steady over time. 00:21:42
So that is. 00:21:52
In good times, we're not receiving a windfall from changes in property. 00:21:55
Valuations, in the bad times we're also not being. 00:22:02
Our our revenue states. 00:22:06
Consistent. 00:22:09
And that really helps us. 00:22:10
Low inflation. 00:22:19
That's true. 00:22:22
Sales tax. 00:22:24
Is a very volatile source of revenue and so. 00:22:25
If if we were to look at this chart and sales tax. 00:22:31
40 or more percent. 00:22:35
That's when I personally would start to get a little worried just because there is such volatility that could change and. 00:22:39
Having looked at that, the extent side of our budget there is. 00:22:49
It's difficult for us to adjust given the fact that so much. 00:22:55
Of our budget is in this. 00:23:00
So to me this is a really stable. 00:23:04
Yeah. Well, I would just say in other cities I've worked for sales taxes in a way larger portion of our revenue. And it's a major 00:23:14
concern just because I actually turned one of our budget meetings with our council. I just illustrated the fact about how 00:23:21
situations like 2008 can impact the city's revenue. And in 2008, the sales tax hit significantly in property tax stays the same as 00:23:27
it doesn't compensate it also if that drop happens early options. 00:23:34
Or. 00:23:44
So that's really just a reflection of. 00:23:49
Well, although this is with the with the new. 00:23:54
It's not just. 00:23:57
Commercial locations here, but it is. 00:23:59
The share that we get. 00:24:01
What did this look like before that allows like 20? 00:24:04
How long has that been in place? So 21 is when we did our first part. 00:24:09
Increase. So this I think I mean I mean to where to where the property tax. 00:24:14
Track the location like it with online shows and things like that. 00:24:19
And so that changed. I mean, I know that we've seen the big surge in sales access now kind of. 00:24:26
Level out, right? 00:24:31
But was it back in 19, was it a comparatively small portion of our budget or I mean sales tax has been the lowest we dipped was 00:24:33
28%? 00:24:39
But you know we did two things almost it simultaneously where we started to realize more sales tax and they also approved. 00:24:47
So that's something I can get for you, but both things change. 00:24:59
I would be. I don't know if anybody else would be interested, but. 00:25:05
Part of the expense high and the revenue pie that you had with work came from. 00:25:11
Would anybody be interested in going back? 00:25:17
Particular amount of time, How hard would it be to compare like? 00:25:21
I would be curious to see. 00:25:26
Ten years ago or 12 years or whatever it is. 00:25:30
What do those pies look like and what they look like now? 00:25:33
Because part of the reason we did, you know, might be interesting to look at that piece of pie too. 00:25:39
At the same time, and I would assume sales tax five would be smaller by percent, but also to see what's happened in that public 00:25:45
works piece because. 00:25:50
I'm hoping that that. 00:25:55
Is a lot bigger than it was. 00:25:58
10 or 12 years ago. 00:26:00
Which is kind of what drove that. And I can almost guarantee that, yeah. But it might, I mean. 00:26:02
What happened over the last whatever, whatever that I don't know. 00:26:10
We probably work. Does that change you at municipal contract sort of empty airline seat pricing versus small loaded? 00:26:15
Maybe like go back ten years or something. 00:26:23
Yeah, that would be really simple to do. 00:26:26
For you. 00:26:30
So. 00:26:39
A little deeper into revenue of, you know, we've talked about sales tax and what has happened over. 00:26:40
This last year where we have seen a stall of the growth that we were previously experiencing in sales tax starting from that 00:26:48
September October 2019 time period. 00:26:56
Really through. 00:27:05
The middle of 23. 00:27:07
So a few months ago, I think I told you we were a little nervous that we were going to come in under budget in terms of sales tax 00:27:12
this year. 00:27:18
We were about, I think $180,000 less than budget through January. 00:27:25
Our February numbers that we received at the end of April were actually. 00:27:32
Really great. About $200,000 over budget. 00:27:38
Made-up for the deficit? 00:27:43
Previously experienced exper. 00:27:46
What that means though is, is we're talking about before we're projecting sales tax flat for. 00:27:55
We'll see what happens from this point whether. 00:28:05
That month we saw in February continues or return. 00:28:09
So with that kind of picture, we can't rely on the way that we have the last couple of years on that growth and sales tax to. 00:28:19
She fondly. 00:28:30
Site increases open. 00:28:32
So I'm curious on if you don't mind. 00:28:36
We've got a few. 00:28:40
Years. It looks like the forecasting is fairly substantial. Dips right on the budget. Is that am I reading that right? Yeah, but 00:28:42
it never. 00:28:47
You know, actual, never reflecting that, do we have a tendency to? 00:28:53
Is there something that makes us think that we'd have a similar dip rather than holding more constant so the budget this is? 00:28:56
Kind of an awful graph because it's quarter, quarter or quarter. 00:29:04
And so some quarters are just we expect more So fourth quarter there's more sales tax than. 00:29:10
That's right. So December is generally a big month. So quarter two is, is usually much larger than you're going to see in the 00:29:17
first quarter. And so that's really it. It's the trend more than the ups and downs. 00:29:25
But the actuals here are the actuals. So we don't it doesn't we're paying for those little, those little is what we're saying. 00:29:35
Pardon me is Q4 those little flips in the in the actual you know? 00:29:43
Of the different years, right. So is that it just? 00:29:51
Perhaps of a beacon through kind of a thing, I guess in the actual supposed to. That's right, yeah. 00:29:55
And usually what what I have traditionally done is just taken the actuals and kind of smooth that. 00:30:02
Smooth them. 00:30:10
It doesn't look soothed in this graph. 00:30:13
Else to be like the. 00:30:18
Mid year sort of budget adjustments when we saw where. 00:30:20
Way ahead of the game, which would cause the budget line to be stockier. 00:30:24
And we haven't done any budget adjustments. 00:30:28
So that's really. 00:30:32
That reflects. 00:30:35
What we see. 00:30:37
At one time a year. 00:30:39
We haven't really adjusted it. 00:30:42
So because we don't expect growth in sales tax. 00:30:51
At the. 00:30:56
With your agreement, the tentative budget includes a 15% property tax. 00:31:00
That's more than we're planning to spend. 00:31:09
Fiscal 25. 00:31:13
Have a surplus in the general fund. 00:31:16
With the idea that then that means. 00:31:20
That would be next year without a tax. 00:31:23
That that's something the council can certainly. 00:31:27
The thought is we want to get out. 00:31:35
Four or five years before we do this again, I think that would be wise because. 00:31:37
I mean, just in terms of shared numbers, we're going to chew up. 00:31:43
900,000 of activists in the police and fire increases. 00:31:46
Fish, right? 00:31:51
Which is going to be dead on building. 00:31:54
But uniquely this year because of the, I hope so, but it will still have those. 00:31:57
By 6% normal increases those buckets. 00:32:05
And so 1.1 million, it's not going to get us a long way over a period of time. 00:32:09
But the idea with that $600,000 gap is that. 00:32:15
Rather than doing a big tax increase every single year that we can spread that out. 00:32:19
And is that 16,000 just go into the general fund then for? 00:32:23
Yeah, it just becomes part of fund balance. 00:32:27
How costly is going through text? 00:32:35
In terms of. 00:32:38
The actual cost not very significant. We have some. 00:32:41
Public notice requirements, certainly some public engagement that we're trying to do to help our residents under. 00:32:46
I don't need to do the massive thing. 00:32:59
This time that we did last. 00:33:01
We're still. 00:33:08
And talk about our approach. 00:33:10
Because it's not as large and because our residents. 00:33:14
Accustomed to the process that we're seeking. 00:33:18
No. 00:33:27
I don't know when the appropriate time would be, but I would like to talk about that frequency of how often the kind of 00:33:29
anticipated taxation just because. 00:33:32
Personally, I think anyways more of a fan of more frequently and more frequently and substantial. 00:33:37
Audi Grits become the goal. 00:33:46
Inflation is a real thing, so we have to, we have to take that into consideration and you know. 00:33:49
Unexpected or extraordinary circumstances like Mississippi this year, things like that, right? 00:33:54
We haven't decided doing it sooner. 00:33:59
But. 00:34:02
You know, quite honestly, I think with the ARPA funding and then with the growth in sales tax. 00:34:04
When they made that legislative change, we were generating a lot more revenue than we anticipated. We just didn't feel like it was 00:34:13
justified to do it. But now we're getting back to normal. 00:34:18
You know, normal growth curves that. 00:34:25
But yeah, that's a. 00:34:28
That's a discussion that the Council should have, I think. 00:34:29
Yeah, yeah, I think that's right. 00:34:35
A good target when you're going out and going for 910% increases. 00:34:44
Every three or four years or something like that. 00:34:49
Are we thinking that this would give us that three to four year? 00:34:52
I think you'd have to draw down fund balance. 00:34:56
Which I don't, we don't want to do that. But you could do that. I mean, yeah, so you don't need this. I mean, I think it really 00:34:59
depends on the size of the increase we see in those things. 00:35:05
Those contracts. 00:35:12
If it normal. 00:35:15
500,000. 00:35:19
They could probably get it and we see some growth in sales tax. 00:35:21
Another three years if we see. 00:35:26
Two big things between the park and this building. 00:35:33
Also. 00:35:38
Something of the capital, but it all comes from property. 00:35:41
How much money do you think you will see coming start command? 00:35:45
From Cotton Mall and When? 00:35:49
So we're seeing a. 00:35:53
Fair amount of increment, I think we broke into the $100,000 income. 00:35:57
Project area. 00:36:05
But. 00:36:07
Most of our property tax and most of the sales tax. 00:36:08
Through 2038. 00:36:16
And the percentage share on that is. 00:36:27
75% of. 00:36:29
And sales tax boy. 00:36:37
I think it's the same. 00:36:41
We do get. 00:36:45
Recollection half percent. 00:36:47
Admin fee. 00:36:50
So we'll get. 00:36:53
Something to help offset our? 00:36:54
Administrative. 00:36:57
Workload. 00:36:59
But we're not going to. 00:37:04
We still get the base. 00:37:07
Not much. 00:37:13
So we do have a few other small revenue changes that I just want to point out with the addition of a new. 00:37:17
Four, we're seeing a bump in. 00:37:27
And so the budget. 00:37:34
Suits of $50,000. 00:37:37
Increase. 00:37:39
With both that hotel and with short term rentals, whether or not they're legal, we can still tax them. 00:37:42
They're being taxed. Some platforms are collecting that tax, so. 00:37:50
We are seeing the benefit of additional interest in this tender budget. 00:38:00
And interest income, we're assuming an increase of $150,000 in our Class C distribution or some legislation last year, two years 00:38:07
ago. 00:38:13
That he had thought was going to cause that distribution to dip for a bit. What is that? So it's gas tax and there's space there 00:38:20
are certain. 00:38:25
Schedule of uses. We can use that for our Rd. maintenance snow removal. 00:38:31
That sort of thing. 00:38:38
Our expense, as always, greatly exceed what we receive. 00:38:40
Can you repeat what's happening with that again? 00:38:48
So it's increasing by $150.00. 00:38:53
It is not related to prices, it's there's a formula share. Last year the legislature changed how that was being allocated between 00:38:58
some. 00:39:03
Really is and other. 00:39:09
For a bit before increasing, we just haven't seen that. 00:39:14
There's a flat per gallon of percentage of price. 00:39:19
Gina, we thought we had that issue with. 00:39:24
The legislation. 00:39:27
Where was it 300,000 we were getting? 00:39:29
A year for 15 years and is that in that piece? It is in its. I'm not showing it as a change because I think we're in year four, 00:39:33
yeah. 00:39:38
And then we're seeing a change in the cost of our prosecutor. 00:39:49
As we have brought Mill Creek on, we weren't sure last year at this time what that volume of cases was going to be for prosecution 00:39:55
services. We are experiencing a change in the increase in the time prosecutors. 00:40:03
Awesome cases. He is asking for an increase, and at this point we're assuming more frequent pay for that. 00:40:12
Pinfall, so that's we're assuming it increases about 40. 00:40:22
So that's the revenue picture. 00:40:29
So let me just look at the cases that this. 00:40:32
Periodically. 00:40:37
So we have a formula or contract basically allocates using just that kind of methodology cases. 00:40:39
But we don't want our costs to increase because that was kind of a hard deal because we didn't want our costs to increase in 00:40:47
cotton pipes with certainly the same position. 00:40:52
So we're trying to figure out how to tie that increase just. 00:40:59
Have a look at a more complex form. 00:41:07
Sense is, they're pretty happy with. 00:41:15
The arrangement and I think it's costing them less money. 00:41:18
For sure it's passing less money I received. 00:41:22
So we'll meet again probably after the end of the fiscal year. 00:41:29
The overview and the revenue picture is level 5. 00:41:50
We're going to move ahead and unless there are other questions and taught public services. 00:41:54
Which has we're going to talk to storm water. 00:42:02
As part of public services capital projects and then the general fund portion. 00:42:06
So now I'm just going to turn it over to jerk. 00:42:15
Do you want me to stay here? 00:42:18
Unless you want to stand up and be the. 00:42:24
I was. 00:42:28
I was originally planning to drive down the Escalante. 00:42:31
But I moved my shirt back two weeks, so I doubled. My presentation went from 5 minutes to 10. 00:42:35
Where did we start with public services? 00:42:45
What page is that on? 00:42:48
90. 00:42:52
Yeah. 00:42:54
However, I'll just have you focus on the slide. 00:42:56
Okay. 00:43:07
Which looks like. 00:43:11
OK, just a quick review of our work chart. 00:43:16
Joe Bolton is our assistant city Engineer. 00:43:25
We've got Thomas Norbit, who is the crew chief. 00:43:29
Supervisor. 00:43:33
Josh Rayburn and George Stahl. 00:43:35
Work maintenance workers under. 00:43:40
Our umbrella here as well. In addition to that, we've got. 00:43:45
We're going to ramp up to three or four seasonal employees. We've got one. 00:43:48
Was, you know, kind of over where we have been trying to hire more. 00:43:54
Since mid February, we've got one. His name is Zane. 00:43:59
And after discussing with Gina about. 00:44:05
Struggles with hiring. 00:44:10
The seasonal wave. 00:44:13
Just as we bumped up. 00:44:15
Are paid from $15 to $16.00 for the position. 00:44:17
With a little bit of a bonus in there, so. 00:44:21
I've actually got a few more applications since we did that. 00:44:24
As soon as we get an application, it doesn't mean they really want the job. 00:44:31
But. 00:44:40
I know we're bringing. I guess this would be the right time. 00:44:45
To ask but. 00:44:50
I know we're bringing on somebody else. 00:44:52
I still have concerns. 00:44:56
About our ability to keep up with our. 00:44:58
Our city infrastructure. 00:45:02
Do we have enough? Do you think that's enough? 00:45:04
Or if we can hire them, are you thinking parks and that? 00:45:08
I. 00:45:13
With the 4th person full time, I think we should start with that. 00:45:18
And rather than jump to a fit, but after a while we find that the 4th person isn't cutting it and we could look at how big the 00:45:24
staff up. 00:45:29
I mean, the struggle has really been hiring. 00:45:37
The things would be looking different. 00:45:45
What specific concerns do you have? 00:45:52
Just being able to keep up with what we have and keep up looking nice. 00:45:54
Because a lot of it now is maturing and I think it's becoming more and more difficult to maintain it. 00:46:00
And I just want to make sure we have enough investment that we can we can keep our trees trained, we can keep. 00:46:06
Grass cut. 00:46:13
You know, like right now there's big job. 00:46:15
Just getting things in shape, I know, Gina said. Give us. 00:46:18
Give us a minute, but it's. 00:46:24
It's going to be a job just getting a lot of this stuff. 00:46:25
Into shape for the summer season, it will be yes. Um. 00:46:28
We've got the cruiser. 00:46:34
Full bore at work. 00:46:38
They're very busy. 00:46:40
We've had some vacations and Taos had back surgery recently. He's on light duty now for another three weeks, so. 00:46:43
Yeah, we were hoping to be stepped up to nine people right now. 00:46:54
Yeah, we do. 00:47:05
Find it easier. 00:47:08
That full-time person, we wanted to go that route. 00:47:10
Versus the seasonals, we come in, we explain to them that you don't get the benefit and you'll be leaving in six months. 00:47:15
See the challenge because. 00:47:24
Once the winter timer just isn't as much right stuff to do and. 00:47:27
Well, you know, then you're, I'm not just concerned about the hourly problem taking it up because they're not benefiting 00:47:34
employees. 00:47:38
And you got to add. 00:47:43
50% of the wage, if you're going to bring on or whatever that number is. 00:47:46
That load, that full-time people. So, but I don't know, there's probably limitations to what we can do, but it wouldn't. 00:47:51
Doesn't bother me to add some dollars, the markets, the market, right. So it's going to say are we just under market a little bit? 00:48:00
To be able to, if we're trying to get the F9 and it's May and you know, I don't know I guess, I guess that complicates someone 00:48:07
who's got your full time people that you're trying to. 00:48:12
Yeah. 00:48:19
Yeah, I don't know. 00:48:22
So if you look at other. 00:48:27
We're in the range, you know, there's a tremendous range from really 12 to 20. 00:48:29
Jared experienced hiring doesn't seem unique. 00:48:37
When talking to other contractors. 00:48:42
Yeah, I just had a conversation with the contractor a couple weeks ago. 00:48:46
I said, hey, I'm having a hard time hiring. How's your experience been? And he's like, I can't get anyone to show up for any of 00:48:52
you. 00:48:55
The labor market is very tight right now. 00:49:01
For those low skilled. 00:49:05
Workforces like. 00:49:08
You don't see the college students coming out for the summer or wanting to do this kind of work. 00:49:09
And most of the people who are not in college want a full time work. 00:49:15
Throughout the year, so. 00:49:19
It's a little bit of a. 00:49:22
Yeah, it's kind of tough. 00:49:25
I think maybe we go a couple more weeks and I'll report back to Gina. 00:49:29
To see if our recent. 00:49:33
Pay increase. 00:49:36
I think. 00:49:39
I don't know what the dynamics are internally in the city in terms of what they structure. 00:49:41
Get that? But there's also a big difference between a full time person and. 00:49:47
Amount of benefits that's loaded onto that position. They could walk different than paying just a straight time with a part-time 00:49:52
wage. And so if. 00:49:56
I mean. 00:50:01
I'll leave it up to you guys, but if we need to take our wage up to get more people. 00:50:04
A couple dollars an hour and that's what the market is and that's what the market is. 00:50:10
Thank you for that support ticket, something I can definitely discuss. 00:50:16
I mean, one of the things we're trying to. 00:50:25
Which is why we have. 00:50:34
We're looking at a, you say through August 50 bonus if you stay through October, that's a $500. Yeah, I think that's more 00:50:39
effectively takes it to about $17.00 an hour, even more so whatever you guys want to do, whatever latitude you need to get her 00:50:45
part time. 00:50:52
Crews in place. 00:51:00
The councils support that we're not going to have a budget issue with it. 00:51:03
Drove my butter nut the other day and that looks I was like. 00:51:07
Pretty good. 00:51:11
And then I drove by it as your estate thing down by just like. 00:51:12
Maybe it needs help, you know what I mean? So it's like, yeah, in the end I just think if we have these public assets. 00:51:18
Yeah. 00:51:26
Yeah, it's not that it's going to get ignored all summer, it's just it's on the list and they don't get. We will get to it. It's 00:51:28
just. 00:51:32
It's not as beautiful as we would like it all the time. 00:51:37
Right now. 00:51:40
OK, umm. 00:51:44
So our, our funds, we've got expenditures that come out of three different funds as Gina noted, our general fund, our capital 00:51:49
projects fund and our storm water fund, 55% of that being stormwater. 00:51:57
Umm. 00:52:08
So I'm going to go over some of our highlights in each of those funds. 00:52:15
So the Salt Lake County Public Works contract is increased by just. 00:52:22
Over 5%. 00:52:27
Which translates to about $150,000. 00:52:30
That is mostly to cover inflationary costs of the county not only. 00:52:35
Labor, but materials as well equipment maintenance and replacement. 00:52:42
So that seems to be kind of on par with a lot of other departments. 00:52:51
That. 00:52:58
We do get above every year. I don't, I can't remember really what the trend has been from each year, but. 00:53:00
That be correct to say that's pretty standard. I think so, yeah, I mean two years ago we had larger increase and then last year it 00:53:09
seems like it was a smaller increase but averaging out around 5%. 00:53:15
So the general the new parks position would come out of the general fund. 00:53:29
One of the things that I'd like to note is that we are transitioning, we'd like to transition all of our two struck engines on our 00:53:35
leak blowers, our hedging equipment and. 00:53:42
Our chainsaws and a variety of other things from two circuit to electric two strips are extremely polluting engines, releasing A 00:53:51
tremendous amount of. 00:53:57
Greenhouse gases for the power output, so we. 00:54:04
Put in $10,000 and that would cover all of our change out for those machines. 00:54:10
Umm, we've got 8. 00:54:18
Going on to our stormwater fund, we are not increasing the stormwater fee. 00:54:21
We are collecting. 00:54:27
Is something that we would make into the Council here next year. 00:54:30
To discuss whether or not we would want to do that. It was in the original. 00:54:37
Presentation given to the Council by our financial consultant a couple of years ago that. 00:54:43
It would be. 00:54:51
We would start with the fee that we're at now and then overtime that would be increased. 00:54:53
So what's going on is we do have about just under $700,000 a year. 00:54:58
On debt service and that's for our bond that's a 20 year. 00:55:05
Bond will be paying off. 00:55:10
We collect approximately $1 million for. 00:55:13
Our saltwater fee annually, so it just leaves maybe a little over $300,000 to spend on storm water. 00:55:19
We don't really need that increase right now because we have the money from the bond. 00:55:26
That bond is going to be spent about 12 to 18 months from now. 00:55:32
And at that point we would just be able, we would only be relying on that. 00:55:38
Delta between the stormwater heat and what we're paying on the deck service. 00:55:44
So once you get. 00:55:52
That stabilize you kind of get? 00:55:54
Idea of what the ongoings are going to be and then make decisions you want to. 00:55:57
Execute that increase, I think it was like. 00:56:01
6:50 to like $9 a month on the ERD for. 00:56:05
Single family home. So for that. But yeah, I agree with that. Let's get our stuff done. 00:56:10
History here too, and see what the ongoing costs are. 00:56:16
And then? But then council can decide that doesn't take the same sort of truth and taxation sort of. No, it's just that vote, 00:56:20
right? 00:56:25
Public hearing but it. 00:56:35
And I'm assuming there's some like limitations. That's how I understand those types of things. That's right. So you. 00:56:38
State law. You could transfer money from an enterprise fund to, say, the general fund. 00:56:47
That would be. You need to do as part of that. 00:56:58
We already have a need to do that because we have plenty of storm water. It would seem inappropriate to me. That's interesting. 00:57:01
Yeah. So some cities, cities that run energy funds. 00:57:06
Do that pretty routinely. 00:57:13
We used to do it routinely and do anymore. 00:57:17
The way to keep your. 00:57:24
So moving into our capital project fund, just note a few things going on in that fund that you might want to be aware of. 00:57:34
We have set aside. 00:57:43
Some funds to hire our consultant to continue the design on our City Hall up to a complete design and engage a consultant for 00:57:46
construction as well. 00:57:54
We would have put that we wouldn't actually start construction on that work with this fund. 00:58:02
As Genius noted before. 00:58:08
We would come back to the Council at a later time. Um. 00:58:12
As discussions develop as to how funding for this construction would actually occur, to keep the momentum going, we would like to 00:58:17
continue to engage the consultant on completing the design. 00:58:23
Conveyance construction costs too. 00:58:31
Or laying dates of it? Are we talking about working with the same architect? 00:58:34
You're very happy with the work that's been done by Process Studio, so we fully intend to have them continue that work rather than 00:58:40
putting it out for a proposal and spending a month during that process and then probably selecting the same consultant. 00:58:50
His sees are very reasonable and the quality of his work we've been very happy with. We do have a full cost estimate based on the 00:59:00
preliminary design that he's completed and was presented a few weeks ago. 00:59:07
So. 00:59:15
It's that seven, $10 million. 00:59:16
It came in around 8 million, but you know with some add-ons it was lower down on the exclusion item. We could be up to the $10 00:59:21
million range. 00:59:26
So this, so this is the $350,000 line item in the budget? 00:59:32
So what does that get us if we know the cost estimate? 00:59:37
So the preliminary design is a 50% design. 00:59:41
So I've asked the consultant to provide us a proposal to take us up to 100% designed for bidding. 00:59:46
So this would be his construction document so we can get actual. 00:59:54
Specification range from 8:00 to 10:00. 01:00:01
Well, no, it doesn't mean that just because you completed design that. 01:00:06
What it does do is it decreases the contingency amount so that some of the stuff that that's assumed in the preliminary work for 01:00:11
costs can be. 01:00:17
Narrowed down into we know exactly what this is going to look like now and so we've removed some of those contingencies by the 01:00:24
time we get to a detailed. 01:00:29
And we hope and our target is to try to shoot for the beginning of the calendar year to have that done. 01:00:35
We would like to have a completed set of documents. 01:00:43
Ready to go? 01:00:51
Late fall And then, if the council is ready, we would actually bid it, say November. 01:00:53
Anticipation that possibly live out as early as January or. 01:01:01
Maybe as late as the spring 2025. 01:01:07
So really, it's the point we're going to say, are we going to do this? 01:01:11
My speaking. 01:01:14
Am I surprising you on what I'm saying? 01:01:18
No, I think that's all. I think we're all committed. 01:01:31
To go forward with this and get the numbers and. 01:01:35
Looking at it and seeing what our timelines look like and. 01:01:38
I think we've got a done deal. We've got to get this. Yeah, I think we don't have to. 01:01:44
We can get the plan set up, but we've got to get the spring lady stuff still in. The council will have some. 01:01:49
Difficult discussions to make in terms of how they're going to find the face. 01:01:54
To me, it all hinges on the. 01:02:01
And then? 01:02:09
Yeah. So we'll see. 01:02:14
Big things going to be to move to and then. 01:02:17
You know, we've got some option in place, but that option could very well be done by then. 01:02:22
And so then it's how do you do it? So we'll. 01:02:28
Yeah, it's not going to be easy. 01:02:36
3 bottles. 01:02:39
OK. In addition to the City Hall project. 01:02:46
Looking at a. 01:02:53
See if we can. 01:02:55
Do some bus shelters. 01:02:57
And we've budgeted about $30,000 for that. 01:03:02
How many shelters does that give you? 01:03:07
Depends on how artistic we want to make. 01:03:10
I think. 01:03:13
From my understanding this requesting from the Council, so if there was a certain number that the Council would like us to target. 01:03:15
If that's two. 01:03:23
I don't think we're going to get more than two out of that, but it could actually just be. 01:03:25
GTA. 01:03:32
We sense any desire to participate. I have talked to ETA about. 01:03:33
Bus shelters. They create classifications and I think there's three different classifications for how busy the bus stop is based 01:03:39
on passenger rides. 01:03:45
Determines the level of improvements for each stop. 01:03:53
They are willing to. They have a program to come in and do upgrades to bus stops. It is exactly to their standard, and it is 01:03:59
according to their priority. 01:04:05
And we have not really seen them do anything in holiday. 01:04:12
Because they feel like they have priorities elsewhere for their money and meet the UK standards, it is somewhat expensive. 01:04:19
To do each bus stop. 01:04:29
Can you do you use their data to determine which bus stops? 01:04:31
So we do have access to their data, their rides, whether or not. 01:04:36
Two busiest ones are like by Holiday Oil, Murray Holiday Road and Highland. 01:04:43
So we could look at the one probably on the West side, which is close to the holiday oil side. 01:04:50
That's the busiest one in the city. 01:04:58
It doesn't really. It doesn't have a shelter, so I would recommend that we consider that one first. 01:05:00
And I would totally agree with that. I think that one's going to be expensive because we don't have right away in that area. 01:05:08
There are some challenges with the application. This is the one that. 01:05:14
Yeah. So if we did that one, then it would probably take all of that. 01:05:18
It very well could. We haven't done. 01:05:25
Much. 01:05:30
Cost analysis on. 01:05:32
Question. Well, I don't think we go above that number. So it's. 01:05:35
We can do too great. But if we can't, I think the point is that. 01:05:40
Test one of these. 01:05:44
See. Sounds great. And then. 01:05:46
It doesn't turn out to be so plain. 01:05:50
Query. So I think it's if we can do a couple. 01:05:53
And look at them and get a feeling for if they've been beneficial then we can have a broader. 01:05:57
You know, future council can have a broader discussion about how they will fund it. 01:06:03
Have a naming right where there was. 01:06:07
Wells Fargo. 01:06:11
New York and stuff like that all the time. 01:06:18
I sat through very painful conversations about this topic in other city capitals. So. 01:06:31
Not worth it, unless it was. 01:06:37
I imagine it might be painful here too. 01:06:40
Just real quickly, a couple other things. We've got two playground surfaces, one here City Park and one at commutes. And how do 01:06:47
you recommend that they be sealed biannually every two years? This one was put in two years ago. We sealed the one that commutes 01:06:53
in two years ago, so. 01:07:00
It's not cheap, so it's about $35,000 to rubber surfaces, but. 01:07:07
It's the difference of having them last five years versus 15 or more years, yeah. 01:07:16
It definitely is. 01:07:24
This is one that in your budget document. I went with a low number and I did not include both parks. 01:07:26
So if you're supportive of this, this is one that I would increase before you adopt. 01:07:34
I think that this makes sense, yeah, for sure. 01:07:42
We work toward giving in alternating years, so that on both well. 01:07:47
Early or one to go three years. 01:07:53
Well, since we are doing it together, there's a $2300 discount. So there is a little bit. It's still the same. 01:08:03
Does it? How long does it shut the playground down for I? 01:08:13
A full day if they do the full surface in a day. 01:08:17
It's like 24 hours. 01:08:22
I think they did the one in canoes in two days last. 01:08:27
Two years ago, so. 01:08:30
I think they did half of the surface. 01:08:33
1/2 And then they slapped it. 01:08:37
I actually call brings up a good point. It's probably too late to do it before school gets outfit. Can we wait until like school 01:08:40
goes back in? Well, there's two things. They do need to do it with certain temperatures. They like the hotter temperatures. And 01:08:46
then if we approve this in July 1st, we wouldn't. 01:08:51
Do it until July well as the school starts August 12th. 01:08:58
So we can maybe wait till the end of August. 01:09:02
Really early. 01:09:11
August 12th, August 12th. August 12th. Wow Yeah, the school ends May 24th. So. 01:09:13
Still be plenty hot and warm and wonderful when they're back at school, yes. 01:09:21
So with that said, UM. 01:09:30
Let's just let me breakdown all the details of pages 90 through 112, I think. 01:09:33
Stop here and answer your questions. 01:09:41
So your biggest challenge still sounds like. 01:09:47
Yes. 01:09:51
I would just stay here. A lot of things like for example the ceiling of these. 01:09:55
I'm very much of an opinion. 01:09:58
To convey the sound of that, any access to the company has fought off on if we're going to own it, we gotta keep it up. Yeah, and 01:10:01
it's super. It's actually, it's irresponsible. 01:10:05
We want to start. 01:10:14
Was that it for your whole presentation? Well, I told you. 01:10:21
There was one. I'm trying to find it now, OK? 01:10:28
I want to talk to you about $400,000 entry for City Hall Park or something. 01:10:33
But the top of page 102. 01:10:41
You got it right, You have it right. 01:10:45
Let me get my wife on the phone. 01:10:50
What is that Gina? 01:10:56
So Jared, I talked about that. We think that is a carryover number from last year. That's when we can look at it a little more 01:10:59
closely. 01:11:03
Where are we going to resurface the parking lot and restrike the parking lot last year? So what we want to do, it was going to be 01:11:09
this year. Well, this spring what we want to actually do is just. 01:11:15
That into the. 01:11:23
Helping. 01:11:25
The remodel work and the seismic upgrade, is there going to be redoing some of this, potentially the South parking lot for that 01:11:28
vegetable if that's included in the work? 01:11:33
That whole slope is going to have a chance, so we decided it could wait another year. 01:11:41
So this is a number that could change. 01:11:47
It looks like we we are past sending has been on statements of our HVAC system in this line item and which is in there we have a 01:11:51
better. We spent about $100,000 for the last couple. 01:11:59
So we're likely to be able to adjust that number downward and then adjust the accessibility services. 01:12:10
So I've asked the consultant to include replacement of all the HVAC units. 01:12:24
The City Hall side and then leave the ones in the police precinct alone because they can freeze or. 01:12:32
Yeah. 01:12:41
We would look at that a little closer, but just because we would be removing much of the ceiling here on our end, we would get in, 01:12:52
do that work. That's not the case on the release side. So I don't know if it's really necessary to go in and tear everything up. 01:13:01
Yeah, so. 01:13:10
That's what we're planning at this moment. 01:13:12
And so I think Dwight had presented those as potential. 01:13:16
Yeah, there is a one. 01:13:22
3/4 of a million to do. 01:13:27
Probably individual thermostat control switch is something we'd want to do. 01:13:30
Is that what we're talking about Mike, so? 01:13:37
We would probably keep the thermostats the same. So like say our executive area, there's like 3 thermostats or even 4. 01:13:39
Each one of those has a heat pump and ceiling above that thermostat. 01:13:48
And those heat pumps are? 01:13:53
17 years old. 01:13:57
And so they've reached the end of their lifespan. They've got old refrigerant R22. 01:13:59
Umm, so we would expect that. 01:14:06
They would start failing. We had like one or two that's failed that's been replaced. 01:14:10
Umm, so yeah, let's we would probably. 01:14:16
Just replace the mall because you can get a better discount if you buy, say, 20. 01:14:21
Versus one at a time. Installation is just a lot less expensive if you install 20 versus 1. 01:14:27
Yeah, I know that was one of the big. 01:14:37
Like add-ons, Yes. And we think each one will cost about 30,000. So it's about 3/4 of $1,000,000. If you wanted to do that, which 01:14:40
if you're going to do this, that's when you should do it, yeah. 01:14:46
For the whole building store, yes. 01:14:53
Arif is that it. 01:14:57
Can you have questions? I would like if we've got. 01:15:00
Time, which we do. Would you mind? Gina and I don't know if you're going to go through this, but. 01:15:05
If this part of your presentation, but I wouldn't mind the Council having. 01:15:09
An idea of what our fund balance position is. I know that's in your budget here. 01:15:14
But I think it's going to be really important for the council to understand. 01:15:20
Where the general fund fund balance sits and where the capital fund fund balance sits. 01:15:25
In terms of what's available to spend, yeah, so general fund fund balance and we can talk about this in more detail. On the 01:15:31
capital side, it's something I'd love to talk with questions about before we get into that side because I think some of it is 01:15:40
related to our bonds. I don't want to provide the council with information that that we have to correct. 01:15:49
But the general fund number I feel really good about talking about. 01:15:58
And that is the front page 30. 01:16:04
Yes. 01:16:09
We have our fund balance the end of fiscal 23 at 7.6. 01:16:12
$1,000,000. 01:16:20
So. 01:16:22
And of that amount, 1.8 is restricted. That is our ARPA, our remaining Artha allocation. 01:16:24
And. 01:16:35
I think the councils previous direction was to look at. 01:16:37
Using that money on. 01:16:44
Per project like. 01:16:46
So that could go into that. 01:16:49
Even though it's restricted, that can go into the spring lane. 01:16:52
So that leads you with five. So if you take that, just keep in your mind you've got 1.8 going into spring lane. 01:16:58
In some kind of phasing that leaves you 5.8. My thinking is that of that $5.8 million of fund balance. 01:17:06
The Council? Always. 01:17:15
We've kind of had this target that we don't want to go below 20% even though the legislative floor is 5%. 01:17:18
We've always kind of wanted to make sure we don't go below 20% to give us ourselves plenty of. 01:17:25
Of money in case of emergency which so is that 5%. 01:17:32
Computer after $22 million budget. 01:17:37
It is. It's off of. 01:17:40
So let's say that's $21 million. 01:17:45
If you're going for 20%, probably want to keep around just. 01:17:51
Under $5 million. 01:17:56
Said any of the other. 01:17:59
Side that you've got a healthy fund balance, and if you don't mind, I'd love to talk about that next week rather than this week. 01:18:05
Yeah, I mean the. 01:18:13
The number I was looking at there is that $12.8 million number, which is probably the one you want to dig into. 01:18:16
But. 01:18:23
My my thinking is that. 01:18:24
Unless I completely out to lunch. 01:18:27
That. 01:18:31
You would be able to probably do one of these projects out of fund balance about going out to a revenue source. 01:18:32
One of the projects being City Hall. They're both at. 01:18:40
They're both. 01:18:43
$10 million projects, right? 01:18:45
So you could probably do one. 01:18:47
With the fund balance. 01:18:51
Depending on how much you want to leave in the capital project. 01:18:53
And I think that will depend on how you want to phase each of these. 01:18:57
Projects and what other potential revenue sources might be available to us. And I'll give you one example of something we're 01:19:01
looking at on the remodel of this building. 01:19:06
We're thinking and Holly and Megan are working on a application for track funding, track funding. 01:19:14
For the entrance portion. 01:19:21
Into the big Cottonwood room. We think that would be a great application because it is a place, it's an arts and culture venue and 01:19:25
that's not it. Although we have been, we've received a lot of track funding over the last several years. We haven't received it in 01:19:33
the arts and culture category, so we think that might be a good application. 01:19:41
Yeah. And there I think there are the opportunities, although you said something about. 01:19:49
When we met with credit school district about the fact that we're leasing the ground from them that May. 01:19:55
Foreclosed some opportunities for funding because we don't own the property. That's right. So and I'll give you a specific 01:20:02
example, there will be a ZAP reauthorization. 01:20:09
Next year. 01:20:20
And so we were trying to talk about how to position our Streamlined project. We're funded from that on. 01:20:21
Our conversations with County indicated that it would be a tough, it would be tough. 01:20:29
Could the school district platform? 01:20:38
Everyone of their properties. 01:20:40
To a park. 01:20:41
Partner with us, we're talking about that and then be the primary applicant. Are you willing to partner with us on some of these 01:20:43
applications? 01:20:46
It seems to me like the way this is going to go. 01:20:51
Is you're really not going to be able to phase this one. 01:20:55
Right. I think this will be tough. There are pieces of it that we might be able to build out, but I think this one would be a lot 01:21:00
tougher. 01:21:04
The cost of exponentially. 01:21:08
But we've got an application with earmark and we've got maybe the so anything we can get. 01:21:12
To help offset the cost, it's going to be helpful because it's money that we could eventually shift over to spring Lane, but 01:21:19
unless, unless the council. 01:21:23
Is considering. 01:21:29
Another revenue source? 01:21:30
Spring Lane is most definitely going to have to be phased. 01:21:33
I think we, I think we everyone. 01:21:37
Like Todd was saying, he thinks this has got to be the priority. The life safety issues here have to be a priority and then spring 01:21:41
lane will just the nature will do the best we can. We'll go after all the pops of money. We can, we'll budget money it, but it's 01:21:47
probably going to be a five year phasing project. 01:21:53
So guys, maybe. 01:22:00
What are the after we use the fund balance and the capital fund, What are the ways that we replenish those funds? 01:22:03
How much do we end up putting in those on average every year? So the last several years we have made a regular transfer and then. 01:22:13
Council policy also says that we can transfer surplus beyond the. 01:22:25
The statutory limitation on general fund. 01:22:34
Fund balance we can transfer surplus they have. 01:22:39
So that's what we're doing. 01:22:42
And it's really again that sales tax growth that has fueled the growth of the capital. 01:22:44
We have. Is there a way to see like over the past three or four years, what we've put into both of those? So kind of like how fast 01:22:49
we can replenish these funds after we suspend is really what I'm trying to see. Yeah, I mean, I can share with you what we have, 01:22:55
what that has looked like the last several years. I just wouldn't expect it to continue at the same rate. 01:23:02
Are you thinking, Gina, that we don't have to budget right now, but. 01:23:13
From a timing standpoint? 01:23:19
The 1.785. 01:23:22
Of our When is our deadline on that? We have to. We have to. 01:23:26
Allocate those funds by the end of this year and then extend them by October 20 or December 26th. 01:23:32
And what's the allocation vehicle? I think it would be a budget amendment. So we what we may want to just make a budget of this 01:23:39
year to move it to the capital improvement. 01:23:45
Fund for the park. 01:23:51
Yeah, I mean, right now it's restricted for the park. I think we'd want to create a budget for it, basically. 01:23:53
Should we go forward with this, we can add a $2,000,000 piece in the budget. 01:24:05
For whatever we do it for space because we've got to spend that 1.785 anyway. So that's a pretty good chunk right under The Cave, 01:24:11
right, to maybe do The Walking, walking traffic around. Yeah. If we know that that's roughly what we have for the phase one, is 01:24:17
that worth it to tell MHCN like this is roughly what we're thinking for phase one, what do you recommend being that first phase 01:24:23
because we kind of talked to them, that's what we were wanting to do. But at least at that point, I don't think we had any numbers 01:24:29
as far as. 01:24:35
What we thought we could spend, yeah, we meet with them on a regular year and so we can have that conversation, the other 01:24:41
potential and this is something we need to. 01:24:46
Explore a little more carefully, but we have. 01:24:53
Some art of funds in stormwater that. 01:24:56
We might be able to. 01:25:00
I apologize, but. 01:25:05
The on the famous system, it was mentioned before, but is there's nothing with this project here that those are funds could 01:25:12
qualify for? 01:25:16
I mean, that's a great question. When we talked about it before, we weren't really. 01:25:20
This project. 01:25:27
There's a ton of arbitrage, and that's something I could take a closer look at. The reason I say that is because if we could, 01:25:31
we're gonna send this sooner. And then the other thing is, I hate to dump 2,000,000 bucks into spring land. 01:25:37
And. 01:25:45
With so many grand, you know. 01:25:46
Qualifications that we cost share and things like that. 01:25:49
Going to be and if we're going to phase it anyways, I'd like to. 01:25:52
I agree. I just was presuming that Arco was not available for here because I agree this is the priority. 01:25:57
But it's not we got to spend it, not here then decision here is going to be. 01:26:05
You know how you pull the trigger and when you pull the trigger. 01:26:13
I'm moving. 01:26:16
Yeah, that's going to be a big deal. 01:26:19
Well. 01:26:23
At what point have we talked about that? 01:26:26
Off the situation and. 01:26:29
Does anyone have that discussion on the relocation? I mean, it's such a unique opportunity that, you know, almost better off to 01:26:35
sucking down the rent. 01:26:41
Securing it, you know what I'm saying? 01:26:48
And hustling really right. 01:26:51
We can talk about that offline, but. 01:26:57
I mean, if we're committed to doing this, we're going to do it. 01:27:00
I don't want to, but I think it's the sort of thing to do. 01:27:04
But it's one of those things where you'll be really, really glad you. 01:27:10
That probably the piece that will require the most sort of public education engagement justification, operational inflation, 50% 01:27:15
nothing but the big project that's probably the one that's going to require that. 01:27:22
The public buying. 01:27:29
I think you're right. We have a meeting set next week to start. 01:27:31
Strategy around that. 01:27:35
And position like yeah, the alternative is to $40 million Creek. 01:27:38
I do have an update. 01:27:56
Creek runoff. 01:28:00
Yes. 01:28:02
Yeah, I got a presentation from the county, today's Salt Lake County Flood Control. They monitor the snow tell sites and the 01:28:05
runoff and the prediction is? 01:28:10
No concerns about flooding. Nothing like last year. 01:28:17
And the reservoirs are full. 01:28:24
Worth pretty full, but runoff is coming up as. 01:28:25
Could expect, and there's no race for concern. 01:28:33
And it's 130% or so normal? 01:28:41
About yeah. 01:28:45
Does that include the three feet they got yesterday support? 01:28:47
But their data was as accurate as of yesterday, so it included the weekend. 01:28:55
Precipitation 01:29:03
People are seeing deep powder. 01:29:05
Hey, before we get out of here too, just a reminder to everybody that you know as you're going, as you're going through this, if 01:29:09
you've got questions like on Jared, so freaked out. And if you're going through some of the detail and you want some clarity or if 01:29:16
you want to link up with Gina for a private session, it's always asked if you can partner with somebody. 01:29:23
Had respect for her time. If you want to get with her and Christian to go through stuff, or if you just want to go through the 01:29:30
whole budget over a couple hour period, make sure your questions are answered. Feel free to do it. 01:29:36
But this is like. 01:29:43
A lot of detail compared to what we used to get five or six years ago. 01:29:45
Yeah, I mean, when Randy used to do it, it was like. 01:29:51
Excel spreadsheet that was. 01:29:55
Not long ago. 01:29:58
Doesn't take long to allocate $100,000. You know, we got 150,000 for the capital project fund. 01:30:01
How do you like this? 01:30:13
Move to adjourn. 01:30:21
Aye, aye. 01:30:37
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Transcript

Event transcript
We'll call the meeting to order. 00:00:01
#1 welcome. 00:00:06
I feel very welcome. 00:00:08
I apologize for missing last week. I assume it was. 00:00:14
It was a budget. 00:00:18
We'll start talking about it next week. 00:00:21
And that begins with the overview. So I'll just turn it over to Gene and we'll start. This is the first time, I think 3. 00:00:25
We'll basically have three work sessions today, next week and then. 00:00:33
We'll have a public hearing on the six foot. We'll also go into work session again and just usually if there's any loose ends we 00:00:39
need to type before we. 00:00:43
Is this the set 6? 00:00:51
So voted on the 13th and that would be. 00:00:54
You have like to you can stretch it out another meeting. 00:01:00
But I'm not Ant hesitating to do that. 00:01:06
Oh. 00:01:12
All right, so I hope we've all had a chance at least. 00:01:16
Overlook the budget document that you received last week. 00:01:20
We're going to spend some time just looking at some high level numbers and explanations and then. 00:01:25
Break it down. 00:01:33
Into presentations that in the next three weeks, starting with Sarah this evening. 00:01:36
So overall the budget that you received, the tentative budget for all funds is about $44 million? 00:01:41
Get too attached to that number and and generally we just talk about this. 00:01:51
A lot of sources with the exception of the storm water fund which is has its own source of revenue and the RDA, many of the other 00:01:59
funds, capital projects and that sort of an art really receive as revenue money from the general fund. So that $44 million double 00:02:07
count dollars. 00:02:14
Which is why I don't spend too much time for talking about it. 00:02:24
And we're going to focus this evening on the general fund. So that that's where what I want to look at. 00:02:29
And this this chart looks at the revenue sources into the general fund over time. 00:02:37
If this this picture would be pretty consistent if we went back another decade. 00:02:46
Taxes, property tax and sales tax are about 80% of revenue into the general fund. 00:02:52
We receive. 00:03:01
About 8% of general funds dollars from intergovernmental sources, that's primarily our Class C or gas tax, allocation of your tax 00:03:03
and some other revenue sharing opportunity. 00:03:09
About 8%. 00:03:17
Pretty consistent numbers for business licenses and building permits over. 00:03:21
Time at about 4%. 00:03:26
Thank you. 00:03:34
Justice Court revenue again at about 4%. 00:03:36
And then some small dollar charges for services. 00:03:40
Road cuts. 00:03:45
That sort of thing. 00:03:47
On the expense side, looking at the general fund fire department, I don't think this chart is going to surprise any of you. Police 00:03:57
is how largest share of our general fund budget is about 35% and fired about 14%. So between the two public safety. 00:04:08
Contracts that account for about 50% of our general fund budget. 00:04:20
Police and fire participants. Those are the 2 biggies. 00:04:29
Public service is that ratio of like 2 1/2 to one. 00:04:34
Leased fire has it always been that big a gap or is police is really proud I would if I just off the top of my head I think fire 00:04:39
used to be closer to 17% so that the public services I think was it. 00:04:48
Used to be at the 14 and fire was 17. 00:04:57
I think fire has grown slower overtime for a variety of reasons, leases growing quicker, public services. 00:05:03
Right now, does that include? It does include everything that Jared doing, but the larger. 00:05:13
In the general fund, the largest component is really that contract. 00:05:22
Services. So those are the three big areas. Not departmental is. 00:05:31
It's a constructed department and really includes 2 large functions that are transferred to the capital project fund and are 00:05:38
transferred to debt service fund. 00:05:44
That's where those two items both are debt service payments and how we pay for capital projects if we don't have a bond. 00:05:51
Are in that non departmental category. We also have a few other smaller items. 00:06:02
You'll see happy, healthy holidays expenses. Our 4th of July celebration is there. We'll talk about that one night that that's the 00:06:12
kind of the category of expenses you'll see there. 00:06:17
Other than that, these expenses again were made pretty consistent over time. Community and economic development about 5%, justice 00:06:24
Court of about 5%. Administration is actually growing a little this year and we'll talk about the reasons for that. 00:06:32
Another evening. 00:06:42
That's about the city attorney's budget and the city. 00:06:44
Looking at the budget from the general fund a different way. 00:06:54
High expense type. This really highlights our model of providing services and. 00:06:58
You see that when you look at how we spend money by type. So about 70% of the money that we send out of the general fund is going 00:07:07
to be charged for service. Police, fire, public works. 00:07:14
City Attorney. 00:07:22
And about. 00:07:24
Less than 15% is actually for staff in primarily in this building that are providing direct services. 00:07:26
This half of the building, that's right. 00:07:36
About 11 percent is of our overall budget is in those contributions and transfers to other funds that are references. 00:07:42
Either transferring to the Arts Council. 00:07:50
Fund or to get service capital projects. 00:07:54
A little less than 5% on operations engagement. 00:07:59
Paper stationary and some non capital improvements to the. 00:08:05
Enough other expenses. 00:08:12
But far and away our largest. 00:08:14
Type of expenses or those charges from services from other agencies. 00:08:17
So just for perspective, I looked at a couple of other cities to show you what that pie would look like. 00:08:26
Depending on how services are provided. So in West Jordan that is a pretty traditional. 00:08:34
City and then they provided police and fire services. 00:08:42
70% of their expenses in the general fund for personnel. 00:08:46
25% or for operational costs? 00:08:53
Sandy, this is a different model. 00:08:58
But a lot of their services also provided directly in about half of their expenses. 00:09:02
Personnel related so. 00:09:09
Were really different in that respect from a lot of other communities. 00:09:11
And Sandy is like. 00:09:15
2 1/2 times outside, they're bigger than that, or more. Three or three times and one of those. 00:09:17
The web Jordan is also a first classity. I think they're. 00:09:22
Shell. 00:09:27
Most of those. 00:09:29
Other expenses are essentially our police and fire, right? So that ends up being personnel. 00:09:31
Really, it's just how you spend the dollars. That's right. And that would be an interesting exercise at some point. 00:09:37
Looking at those contracts, if you if we took those personnel services part of those budget. 00:09:50
How that would look? 00:09:56
It does mean that you as a council have less control of this person dollars. That either happens in the case of public works at 00:09:58
the County Council level or at the USA board or. 00:10:04
So looking at that 14%? 00:10:16
And really down into our own personal costs. 00:10:19
So we said about 3.5 million or will in fiscal. 00:10:23
About 65% of our costs are related to wages. 00:10:31
Salary and 30% of benefits. 00:10:38
I'm just going to point out here that that means we're providing a very rich benefit package for our employees. 00:10:43
Our health insurance, for example, we pay 90% of the premium for single or double or family, whatever an employee selects. 00:10:50
We have a variety of. 00:11:02
Retirement system programs and we also provide a match that people. 00:11:05
Are making their own contribution to. 00:11:10
So. 00:11:17
Offer a 401K match. 00:11:19
It used to be very, very common. I think it no longer as common. 00:11:21
So no match for this soft performant care? Are they providing it with a different type of? 00:11:30
So most cities participate in URS. They think and I think what's rare is the richness of our. 00:11:35
So right now the policies that the council adopted that it's up to 5%, little match on percentage. 00:11:47
That's really one for one for one, yeah. 00:11:57
I think that's really meant to encourage. 00:12:02
Our staff to save. 00:12:06
I think of less than half of our staff. 00:12:09
Is it a benefit we realized the benefit from? 00:12:18
In your view like. 00:12:22
Do employees? 00:12:25
The tipping point on them? 00:12:27
Or is it just? 00:12:32
Something they did. I mean, that's a great question and that's something we can ask. 00:12:33
It's hard for me to answer. 00:12:39
Last year. 00:12:43
So I. 00:12:47
I don't know. I I would like to disagree with you. 00:12:49
If you feel comfortable sharing, yeah. 00:12:54
I think it's great. 00:12:58
Oh, sorry. 00:12:59
Holiday. 00:13:06
You would. I noticed that. Calculate that height to your package. That was just me though. 00:13:12
Yeah, it probably depends on the employees do like a direct level position probably. 00:13:21
Was more likely to do a 4018. 00:13:26
So our personal costs reflect 1 vacancy, which is. 00:13:40
Number of years. 00:13:49
We have also included in the tentative budget a request for one new position, which is a parks and maintenance worker position. 00:13:56
Anticipating a change in maintenance. 00:14:06
Around this road insight so. 00:14:11
The $68,000 that you see here is the reflection of. 00:14:15
More anticipated POS. 00:14:25
In an ideal world, we would be able to hire from one of our seasonal staff members. 00:14:28
But that that would be the idea. 00:14:42
You see a small dollar, about $33,000 included in additional pay. That's a placeholder for things like overtime. There are a 00:14:45
couple of physicians where we provide a language. 00:14:52
Adjustment in. 00:15:00
For people to use their language skills as part of their job, that's primarily the justice. 00:15:04
So. 00:15:12
Absolutely and. 00:15:14
So we think that spring is. 00:15:21
November, kind of. 00:15:24
So because we haven't negotiated with school district, I'm not sure at what point they would assume us taking over maintenance. 00:15:27
This is this replacement to see if that happens. 00:15:36
Placeholder for November through June and then it would and then it would increase increase the full FDE position. That's right. 00:15:41
And so this assumes this is a position is a good illustration of. 00:15:49
The richness of our benefits, because I think. 00:15:59
I included a position that's maybe $22.00 an hour. 00:16:03
But if someone is taking health insurance? 00:16:08
That almost double S the cost of the. 00:16:12
Sorry, the soup that they would be taking up. 00:16:17
Package it could need it. 00:16:22
This slide just breaks out that same personnel cost looking at. 00:16:36
Staff and elections. 00:16:42
At this table, 90% of our our percent costs are related to staff. 00:16:45
If that elected officials members. 00:16:54
Seems time to you. 00:16:56
A lot of that is. 00:16:59
Our Justice court judges. 00:17:02
Full time salary and. 00:17:07
Is the Planning Commission compensated? 00:17:12
They are, and I think that. 00:17:14
$50 a meeting. 00:17:18
I think 45, yeah. 00:17:22
In terms of major personnel changes that you will see in the budget. 00:17:31
Other adjustments. Last year we had budgeted to include GIS Manager. 00:17:43
And for that $36,000 represented I think 3 months of. 00:17:51
Salary benefits. 00:17:59
Based on the skills of people we have hired in both public services and CD, we're not going to hire that position. So the fact 00:18:01
that. 00:18:05
How we had budgeted for positions and what people are either actually being paid or what their benefit package looks. 00:18:17
That's about $61,000 in savings. 00:18:26
Increased by almost 5% this year. 00:18:31
Added to the budget. 00:18:35
Changed for most. 00:18:38
The cost of the city has actually. 00:18:42
Down this year. So that's savings of about 20,000. 00:18:44
Cancel each other out. 00:18:51
We have some market adjustments and expected promotions included in the. 00:18:53
About $32,000 and then. 00:18:58
To visit the major personnel changes. 00:19:07
Other changes that we'll be talking about. 00:19:12
Include, no surprise, your identity. 00:19:17
Change for police? 00:19:21
An increase of how I'm trying. 00:19:26
675 or close to 300,000 for USA. 00:19:29
185,000. 00:19:36
So then we have a 250 increase for or I'm sorry, A-150 increase for Republican? 00:19:48
So those are. 00:19:59
Big expense changes we'll be talking about over the next few months. 00:20:00
Now we'll go into more depth in terms of our revenue. 00:20:17
Just another look at that same. 00:20:28
General fund revenue Sources. 00:20:31
In municipal finance. 00:20:51
One of the things we try to look at is how our revenue is split. 00:20:56
Between property tax and tax and other. 00:21:04
A lot of people refer to this as a three legged. 00:21:09
School with India that you want to keep them dropped in the heat. 00:21:12
In our case, looking forward to just little 25, property tax would be about 40 percent, 39% of our general fund revenue, sales tax 00:21:17
about 30. 00:21:23
And other sources of that funding. 00:21:29
To me, this is a really healthy mix of revenue sources, property tax being the most stable revenue source. The wing is, I think 00:21:32
we've all tracked that before. The way our property tax truth and taxation is designed, it's our revenue steady over time. 00:21:42
So that is. 00:21:52
In good times, we're not receiving a windfall from changes in property. 00:21:55
Valuations, in the bad times we're also not being. 00:22:02
Our our revenue states. 00:22:06
Consistent. 00:22:09
And that really helps us. 00:22:10
Low inflation. 00:22:19
That's true. 00:22:22
Sales tax. 00:22:24
Is a very volatile source of revenue and so. 00:22:25
If if we were to look at this chart and sales tax. 00:22:31
40 or more percent. 00:22:35
That's when I personally would start to get a little worried just because there is such volatility that could change and. 00:22:39
Having looked at that, the extent side of our budget there is. 00:22:49
It's difficult for us to adjust given the fact that so much. 00:22:55
Of our budget is in this. 00:23:00
So to me this is a really stable. 00:23:04
Yeah. Well, I would just say in other cities I've worked for sales taxes in a way larger portion of our revenue. And it's a major 00:23:14
concern just because I actually turned one of our budget meetings with our council. I just illustrated the fact about how 00:23:21
situations like 2008 can impact the city's revenue. And in 2008, the sales tax hit significantly in property tax stays the same as 00:23:27
it doesn't compensate it also if that drop happens early options. 00:23:34
Or. 00:23:44
So that's really just a reflection of. 00:23:49
Well, although this is with the with the new. 00:23:54
It's not just. 00:23:57
Commercial locations here, but it is. 00:23:59
The share that we get. 00:24:01
What did this look like before that allows like 20? 00:24:04
How long has that been in place? So 21 is when we did our first part. 00:24:09
Increase. So this I think I mean I mean to where to where the property tax. 00:24:14
Track the location like it with online shows and things like that. 00:24:19
And so that changed. I mean, I know that we've seen the big surge in sales access now kind of. 00:24:26
Level out, right? 00:24:31
But was it back in 19, was it a comparatively small portion of our budget or I mean sales tax has been the lowest we dipped was 00:24:33
28%? 00:24:39
But you know we did two things almost it simultaneously where we started to realize more sales tax and they also approved. 00:24:47
So that's something I can get for you, but both things change. 00:24:59
I would be. I don't know if anybody else would be interested, but. 00:25:05
Part of the expense high and the revenue pie that you had with work came from. 00:25:11
Would anybody be interested in going back? 00:25:17
Particular amount of time, How hard would it be to compare like? 00:25:21
I would be curious to see. 00:25:26
Ten years ago or 12 years or whatever it is. 00:25:30
What do those pies look like and what they look like now? 00:25:33
Because part of the reason we did, you know, might be interesting to look at that piece of pie too. 00:25:39
At the same time, and I would assume sales tax five would be smaller by percent, but also to see what's happened in that public 00:25:45
works piece because. 00:25:50
I'm hoping that that. 00:25:55
Is a lot bigger than it was. 00:25:58
10 or 12 years ago. 00:26:00
Which is kind of what drove that. And I can almost guarantee that, yeah. But it might, I mean. 00:26:02
What happened over the last whatever, whatever that I don't know. 00:26:10
We probably work. Does that change you at municipal contract sort of empty airline seat pricing versus small loaded? 00:26:15
Maybe like go back ten years or something. 00:26:23
Yeah, that would be really simple to do. 00:26:26
For you. 00:26:30
So. 00:26:39
A little deeper into revenue of, you know, we've talked about sales tax and what has happened over. 00:26:40
This last year where we have seen a stall of the growth that we were previously experiencing in sales tax starting from that 00:26:48
September October 2019 time period. 00:26:56
Really through. 00:27:05
The middle of 23. 00:27:07
So a few months ago, I think I told you we were a little nervous that we were going to come in under budget in terms of sales tax 00:27:12
this year. 00:27:18
We were about, I think $180,000 less than budget through January. 00:27:25
Our February numbers that we received at the end of April were actually. 00:27:32
Really great. About $200,000 over budget. 00:27:38
Made-up for the deficit? 00:27:43
Previously experienced exper. 00:27:46
What that means though is, is we're talking about before we're projecting sales tax flat for. 00:27:55
We'll see what happens from this point whether. 00:28:05
That month we saw in February continues or return. 00:28:09
So with that kind of picture, we can't rely on the way that we have the last couple of years on that growth and sales tax to. 00:28:19
She fondly. 00:28:30
Site increases open. 00:28:32
So I'm curious on if you don't mind. 00:28:36
We've got a few. 00:28:40
Years. It looks like the forecasting is fairly substantial. Dips right on the budget. Is that am I reading that right? Yeah, but 00:28:42
it never. 00:28:47
You know, actual, never reflecting that, do we have a tendency to? 00:28:53
Is there something that makes us think that we'd have a similar dip rather than holding more constant so the budget this is? 00:28:56
Kind of an awful graph because it's quarter, quarter or quarter. 00:29:04
And so some quarters are just we expect more So fourth quarter there's more sales tax than. 00:29:10
That's right. So December is generally a big month. So quarter two is, is usually much larger than you're going to see in the 00:29:17
first quarter. And so that's really it. It's the trend more than the ups and downs. 00:29:25
But the actuals here are the actuals. So we don't it doesn't we're paying for those little, those little is what we're saying. 00:29:35
Pardon me is Q4 those little flips in the in the actual you know? 00:29:43
Of the different years, right. So is that it just? 00:29:51
Perhaps of a beacon through kind of a thing, I guess in the actual supposed to. That's right, yeah. 00:29:55
And usually what what I have traditionally done is just taken the actuals and kind of smooth that. 00:30:02
Smooth them. 00:30:10
It doesn't look soothed in this graph. 00:30:13
Else to be like the. 00:30:18
Mid year sort of budget adjustments when we saw where. 00:30:20
Way ahead of the game, which would cause the budget line to be stockier. 00:30:24
And we haven't done any budget adjustments. 00:30:28
So that's really. 00:30:32
That reflects. 00:30:35
What we see. 00:30:37
At one time a year. 00:30:39
We haven't really adjusted it. 00:30:42
So because we don't expect growth in sales tax. 00:30:51
At the. 00:30:56
With your agreement, the tentative budget includes a 15% property tax. 00:31:00
That's more than we're planning to spend. 00:31:09
Fiscal 25. 00:31:13
Have a surplus in the general fund. 00:31:16
With the idea that then that means. 00:31:20
That would be next year without a tax. 00:31:23
That that's something the council can certainly. 00:31:27
The thought is we want to get out. 00:31:35
Four or five years before we do this again, I think that would be wise because. 00:31:37
I mean, just in terms of shared numbers, we're going to chew up. 00:31:43
900,000 of activists in the police and fire increases. 00:31:46
Fish, right? 00:31:51
Which is going to be dead on building. 00:31:54
But uniquely this year because of the, I hope so, but it will still have those. 00:31:57
By 6% normal increases those buckets. 00:32:05
And so 1.1 million, it's not going to get us a long way over a period of time. 00:32:09
But the idea with that $600,000 gap is that. 00:32:15
Rather than doing a big tax increase every single year that we can spread that out. 00:32:19
And is that 16,000 just go into the general fund then for? 00:32:23
Yeah, it just becomes part of fund balance. 00:32:27
How costly is going through text? 00:32:35
In terms of. 00:32:38
The actual cost not very significant. We have some. 00:32:41
Public notice requirements, certainly some public engagement that we're trying to do to help our residents under. 00:32:46
I don't need to do the massive thing. 00:32:59
This time that we did last. 00:33:01
We're still. 00:33:08
And talk about our approach. 00:33:10
Because it's not as large and because our residents. 00:33:14
Accustomed to the process that we're seeking. 00:33:18
No. 00:33:27
I don't know when the appropriate time would be, but I would like to talk about that frequency of how often the kind of 00:33:29
anticipated taxation just because. 00:33:32
Personally, I think anyways more of a fan of more frequently and more frequently and substantial. 00:33:37
Audi Grits become the goal. 00:33:46
Inflation is a real thing, so we have to, we have to take that into consideration and you know. 00:33:49
Unexpected or extraordinary circumstances like Mississippi this year, things like that, right? 00:33:54
We haven't decided doing it sooner. 00:33:59
But. 00:34:02
You know, quite honestly, I think with the ARPA funding and then with the growth in sales tax. 00:34:04
When they made that legislative change, we were generating a lot more revenue than we anticipated. We just didn't feel like it was 00:34:13
justified to do it. But now we're getting back to normal. 00:34:18
You know, normal growth curves that. 00:34:25
But yeah, that's a. 00:34:28
That's a discussion that the Council should have, I think. 00:34:29
Yeah, yeah, I think that's right. 00:34:35
A good target when you're going out and going for 910% increases. 00:34:44
Every three or four years or something like that. 00:34:49
Are we thinking that this would give us that three to four year? 00:34:52
I think you'd have to draw down fund balance. 00:34:56
Which I don't, we don't want to do that. But you could do that. I mean, yeah, so you don't need this. I mean, I think it really 00:34:59
depends on the size of the increase we see in those things. 00:35:05
Those contracts. 00:35:12
If it normal. 00:35:15
500,000. 00:35:19
They could probably get it and we see some growth in sales tax. 00:35:21
Another three years if we see. 00:35:26
Two big things between the park and this building. 00:35:33
Also. 00:35:38
Something of the capital, but it all comes from property. 00:35:41
How much money do you think you will see coming start command? 00:35:45
From Cotton Mall and When? 00:35:49
So we're seeing a. 00:35:53
Fair amount of increment, I think we broke into the $100,000 income. 00:35:57
Project area. 00:36:05
But. 00:36:07
Most of our property tax and most of the sales tax. 00:36:08
Through 2038. 00:36:16
And the percentage share on that is. 00:36:27
75% of. 00:36:29
And sales tax boy. 00:36:37
I think it's the same. 00:36:41
We do get. 00:36:45
Recollection half percent. 00:36:47
Admin fee. 00:36:50
So we'll get. 00:36:53
Something to help offset our? 00:36:54
Administrative. 00:36:57
Workload. 00:36:59
But we're not going to. 00:37:04
We still get the base. 00:37:07
Not much. 00:37:13
So we do have a few other small revenue changes that I just want to point out with the addition of a new. 00:37:17
Four, we're seeing a bump in. 00:37:27
And so the budget. 00:37:34
Suits of $50,000. 00:37:37
Increase. 00:37:39
With both that hotel and with short term rentals, whether or not they're legal, we can still tax them. 00:37:42
They're being taxed. Some platforms are collecting that tax, so. 00:37:50
We are seeing the benefit of additional interest in this tender budget. 00:38:00
And interest income, we're assuming an increase of $150,000 in our Class C distribution or some legislation last year, two years 00:38:07
ago. 00:38:13
That he had thought was going to cause that distribution to dip for a bit. What is that? So it's gas tax and there's space there 00:38:20
are certain. 00:38:25
Schedule of uses. We can use that for our Rd. maintenance snow removal. 00:38:31
That sort of thing. 00:38:38
Our expense, as always, greatly exceed what we receive. 00:38:40
Can you repeat what's happening with that again? 00:38:48
So it's increasing by $150.00. 00:38:53
It is not related to prices, it's there's a formula share. Last year the legislature changed how that was being allocated between 00:38:58
some. 00:39:03
Really is and other. 00:39:09
For a bit before increasing, we just haven't seen that. 00:39:14
There's a flat per gallon of percentage of price. 00:39:19
Gina, we thought we had that issue with. 00:39:24
The legislation. 00:39:27
Where was it 300,000 we were getting? 00:39:29
A year for 15 years and is that in that piece? It is in its. I'm not showing it as a change because I think we're in year four, 00:39:33
yeah. 00:39:38
And then we're seeing a change in the cost of our prosecutor. 00:39:49
As we have brought Mill Creek on, we weren't sure last year at this time what that volume of cases was going to be for prosecution 00:39:55
services. We are experiencing a change in the increase in the time prosecutors. 00:40:03
Awesome cases. He is asking for an increase, and at this point we're assuming more frequent pay for that. 00:40:12
Pinfall, so that's we're assuming it increases about 40. 00:40:22
So that's the revenue picture. 00:40:29
So let me just look at the cases that this. 00:40:32
Periodically. 00:40:37
So we have a formula or contract basically allocates using just that kind of methodology cases. 00:40:39
But we don't want our costs to increase because that was kind of a hard deal because we didn't want our costs to increase in 00:40:47
cotton pipes with certainly the same position. 00:40:52
So we're trying to figure out how to tie that increase just. 00:40:59
Have a look at a more complex form. 00:41:07
Sense is, they're pretty happy with. 00:41:15
The arrangement and I think it's costing them less money. 00:41:18
For sure it's passing less money I received. 00:41:22
So we'll meet again probably after the end of the fiscal year. 00:41:29
The overview and the revenue picture is level 5. 00:41:50
We're going to move ahead and unless there are other questions and taught public services. 00:41:54
Which has we're going to talk to storm water. 00:42:02
As part of public services capital projects and then the general fund portion. 00:42:06
So now I'm just going to turn it over to jerk. 00:42:15
Do you want me to stay here? 00:42:18
Unless you want to stand up and be the. 00:42:24
I was. 00:42:28
I was originally planning to drive down the Escalante. 00:42:31
But I moved my shirt back two weeks, so I doubled. My presentation went from 5 minutes to 10. 00:42:35
Where did we start with public services? 00:42:45
What page is that on? 00:42:48
90. 00:42:52
Yeah. 00:42:54
However, I'll just have you focus on the slide. 00:42:56
Okay. 00:43:07
Which looks like. 00:43:11
OK, just a quick review of our work chart. 00:43:16
Joe Bolton is our assistant city Engineer. 00:43:25
We've got Thomas Norbit, who is the crew chief. 00:43:29
Supervisor. 00:43:33
Josh Rayburn and George Stahl. 00:43:35
Work maintenance workers under. 00:43:40
Our umbrella here as well. In addition to that, we've got. 00:43:45
We're going to ramp up to three or four seasonal employees. We've got one. 00:43:48
Was, you know, kind of over where we have been trying to hire more. 00:43:54
Since mid February, we've got one. His name is Zane. 00:43:59
And after discussing with Gina about. 00:44:05
Struggles with hiring. 00:44:10
The seasonal wave. 00:44:13
Just as we bumped up. 00:44:15
Are paid from $15 to $16.00 for the position. 00:44:17
With a little bit of a bonus in there, so. 00:44:21
I've actually got a few more applications since we did that. 00:44:24
As soon as we get an application, it doesn't mean they really want the job. 00:44:31
But. 00:44:40
I know we're bringing. I guess this would be the right time. 00:44:45
To ask but. 00:44:50
I know we're bringing on somebody else. 00:44:52
I still have concerns. 00:44:56
About our ability to keep up with our. 00:44:58
Our city infrastructure. 00:45:02
Do we have enough? Do you think that's enough? 00:45:04
Or if we can hire them, are you thinking parks and that? 00:45:08
I. 00:45:13
With the 4th person full time, I think we should start with that. 00:45:18
And rather than jump to a fit, but after a while we find that the 4th person isn't cutting it and we could look at how big the 00:45:24
staff up. 00:45:29
I mean, the struggle has really been hiring. 00:45:37
The things would be looking different. 00:45:45
What specific concerns do you have? 00:45:52
Just being able to keep up with what we have and keep up looking nice. 00:45:54
Because a lot of it now is maturing and I think it's becoming more and more difficult to maintain it. 00:46:00
And I just want to make sure we have enough investment that we can we can keep our trees trained, we can keep. 00:46:06
Grass cut. 00:46:13
You know, like right now there's big job. 00:46:15
Just getting things in shape, I know, Gina said. Give us. 00:46:18
Give us a minute, but it's. 00:46:24
It's going to be a job just getting a lot of this stuff. 00:46:25
Into shape for the summer season, it will be yes. Um. 00:46:28
We've got the cruiser. 00:46:34
Full bore at work. 00:46:38
They're very busy. 00:46:40
We've had some vacations and Taos had back surgery recently. He's on light duty now for another three weeks, so. 00:46:43
Yeah, we were hoping to be stepped up to nine people right now. 00:46:54
Yeah, we do. 00:47:05
Find it easier. 00:47:08
That full-time person, we wanted to go that route. 00:47:10
Versus the seasonals, we come in, we explain to them that you don't get the benefit and you'll be leaving in six months. 00:47:15
See the challenge because. 00:47:24
Once the winter timer just isn't as much right stuff to do and. 00:47:27
Well, you know, then you're, I'm not just concerned about the hourly problem taking it up because they're not benefiting 00:47:34
employees. 00:47:38
And you got to add. 00:47:43
50% of the wage, if you're going to bring on or whatever that number is. 00:47:46
That load, that full-time people. So, but I don't know, there's probably limitations to what we can do, but it wouldn't. 00:47:51
Doesn't bother me to add some dollars, the markets, the market, right. So it's going to say are we just under market a little bit? 00:48:00
To be able to, if we're trying to get the F9 and it's May and you know, I don't know I guess, I guess that complicates someone 00:48:07
who's got your full time people that you're trying to. 00:48:12
Yeah. 00:48:19
Yeah, I don't know. 00:48:22
So if you look at other. 00:48:27
We're in the range, you know, there's a tremendous range from really 12 to 20. 00:48:29
Jared experienced hiring doesn't seem unique. 00:48:37
When talking to other contractors. 00:48:42
Yeah, I just had a conversation with the contractor a couple weeks ago. 00:48:46
I said, hey, I'm having a hard time hiring. How's your experience been? And he's like, I can't get anyone to show up for any of 00:48:52
you. 00:48:55
The labor market is very tight right now. 00:49:01
For those low skilled. 00:49:05
Workforces like. 00:49:08
You don't see the college students coming out for the summer or wanting to do this kind of work. 00:49:09
And most of the people who are not in college want a full time work. 00:49:15
Throughout the year, so. 00:49:19
It's a little bit of a. 00:49:22
Yeah, it's kind of tough. 00:49:25
I think maybe we go a couple more weeks and I'll report back to Gina. 00:49:29
To see if our recent. 00:49:33
Pay increase. 00:49:36
I think. 00:49:39
I don't know what the dynamics are internally in the city in terms of what they structure. 00:49:41
Get that? But there's also a big difference between a full time person and. 00:49:47
Amount of benefits that's loaded onto that position. They could walk different than paying just a straight time with a part-time 00:49:52
wage. And so if. 00:49:56
I mean. 00:50:01
I'll leave it up to you guys, but if we need to take our wage up to get more people. 00:50:04
A couple dollars an hour and that's what the market is and that's what the market is. 00:50:10
Thank you for that support ticket, something I can definitely discuss. 00:50:16
I mean, one of the things we're trying to. 00:50:25
Which is why we have. 00:50:34
We're looking at a, you say through August 50 bonus if you stay through October, that's a $500. Yeah, I think that's more 00:50:39
effectively takes it to about $17.00 an hour, even more so whatever you guys want to do, whatever latitude you need to get her 00:50:45
part time. 00:50:52
Crews in place. 00:51:00
The councils support that we're not going to have a budget issue with it. 00:51:03
Drove my butter nut the other day and that looks I was like. 00:51:07
Pretty good. 00:51:11
And then I drove by it as your estate thing down by just like. 00:51:12
Maybe it needs help, you know what I mean? So it's like, yeah, in the end I just think if we have these public assets. 00:51:18
Yeah. 00:51:26
Yeah, it's not that it's going to get ignored all summer, it's just it's on the list and they don't get. We will get to it. It's 00:51:28
just. 00:51:32
It's not as beautiful as we would like it all the time. 00:51:37
Right now. 00:51:40
OK, umm. 00:51:44
So our, our funds, we've got expenditures that come out of three different funds as Gina noted, our general fund, our capital 00:51:49
projects fund and our storm water fund, 55% of that being stormwater. 00:51:57
Umm. 00:52:08
So I'm going to go over some of our highlights in each of those funds. 00:52:15
So the Salt Lake County Public Works contract is increased by just. 00:52:22
Over 5%. 00:52:27
Which translates to about $150,000. 00:52:30
That is mostly to cover inflationary costs of the county not only. 00:52:35
Labor, but materials as well equipment maintenance and replacement. 00:52:42
So that seems to be kind of on par with a lot of other departments. 00:52:51
That. 00:52:58
We do get above every year. I don't, I can't remember really what the trend has been from each year, but. 00:53:00
That be correct to say that's pretty standard. I think so, yeah, I mean two years ago we had larger increase and then last year it 00:53:09
seems like it was a smaller increase but averaging out around 5%. 00:53:15
So the general the new parks position would come out of the general fund. 00:53:29
One of the things that I'd like to note is that we are transitioning, we'd like to transition all of our two struck engines on our 00:53:35
leak blowers, our hedging equipment and. 00:53:42
Our chainsaws and a variety of other things from two circuit to electric two strips are extremely polluting engines, releasing A 00:53:51
tremendous amount of. 00:53:57
Greenhouse gases for the power output, so we. 00:54:04
Put in $10,000 and that would cover all of our change out for those machines. 00:54:10
Umm, we've got 8. 00:54:18
Going on to our stormwater fund, we are not increasing the stormwater fee. 00:54:21
We are collecting. 00:54:27
Is something that we would make into the Council here next year. 00:54:30
To discuss whether or not we would want to do that. It was in the original. 00:54:37
Presentation given to the Council by our financial consultant a couple of years ago that. 00:54:43
It would be. 00:54:51
We would start with the fee that we're at now and then overtime that would be increased. 00:54:53
So what's going on is we do have about just under $700,000 a year. 00:54:58
On debt service and that's for our bond that's a 20 year. 00:55:05
Bond will be paying off. 00:55:10
We collect approximately $1 million for. 00:55:13
Our saltwater fee annually, so it just leaves maybe a little over $300,000 to spend on storm water. 00:55:19
We don't really need that increase right now because we have the money from the bond. 00:55:26
That bond is going to be spent about 12 to 18 months from now. 00:55:32
And at that point we would just be able, we would only be relying on that. 00:55:38
Delta between the stormwater heat and what we're paying on the deck service. 00:55:44
So once you get. 00:55:52
That stabilize you kind of get? 00:55:54
Idea of what the ongoings are going to be and then make decisions you want to. 00:55:57
Execute that increase, I think it was like. 00:56:01
6:50 to like $9 a month on the ERD for. 00:56:05
Single family home. So for that. But yeah, I agree with that. Let's get our stuff done. 00:56:10
History here too, and see what the ongoing costs are. 00:56:16
And then? But then council can decide that doesn't take the same sort of truth and taxation sort of. No, it's just that vote, 00:56:20
right? 00:56:25
Public hearing but it. 00:56:35
And I'm assuming there's some like limitations. That's how I understand those types of things. That's right. So you. 00:56:38
State law. You could transfer money from an enterprise fund to, say, the general fund. 00:56:47
That would be. You need to do as part of that. 00:56:58
We already have a need to do that because we have plenty of storm water. It would seem inappropriate to me. That's interesting. 00:57:01
Yeah. So some cities, cities that run energy funds. 00:57:06
Do that pretty routinely. 00:57:13
We used to do it routinely and do anymore. 00:57:17
The way to keep your. 00:57:24
So moving into our capital project fund, just note a few things going on in that fund that you might want to be aware of. 00:57:34
We have set aside. 00:57:43
Some funds to hire our consultant to continue the design on our City Hall up to a complete design and engage a consultant for 00:57:46
construction as well. 00:57:54
We would have put that we wouldn't actually start construction on that work with this fund. 00:58:02
As Genius noted before. 00:58:08
We would come back to the Council at a later time. Um. 00:58:12
As discussions develop as to how funding for this construction would actually occur, to keep the momentum going, we would like to 00:58:17
continue to engage the consultant on completing the design. 00:58:23
Conveyance construction costs too. 00:58:31
Or laying dates of it? Are we talking about working with the same architect? 00:58:34
You're very happy with the work that's been done by Process Studio, so we fully intend to have them continue that work rather than 00:58:40
putting it out for a proposal and spending a month during that process and then probably selecting the same consultant. 00:58:50
His sees are very reasonable and the quality of his work we've been very happy with. We do have a full cost estimate based on the 00:59:00
preliminary design that he's completed and was presented a few weeks ago. 00:59:07
So. 00:59:15
It's that seven, $10 million. 00:59:16
It came in around 8 million, but you know with some add-ons it was lower down on the exclusion item. We could be up to the $10 00:59:21
million range. 00:59:26
So this, so this is the $350,000 line item in the budget? 00:59:32
So what does that get us if we know the cost estimate? 00:59:37
So the preliminary design is a 50% design. 00:59:41
So I've asked the consultant to provide us a proposal to take us up to 100% designed for bidding. 00:59:46
So this would be his construction document so we can get actual. 00:59:54
Specification range from 8:00 to 10:00. 01:00:01
Well, no, it doesn't mean that just because you completed design that. 01:00:06
What it does do is it decreases the contingency amount so that some of the stuff that that's assumed in the preliminary work for 01:00:11
costs can be. 01:00:17
Narrowed down into we know exactly what this is going to look like now and so we've removed some of those contingencies by the 01:00:24
time we get to a detailed. 01:00:29
And we hope and our target is to try to shoot for the beginning of the calendar year to have that done. 01:00:35
We would like to have a completed set of documents. 01:00:43
Ready to go? 01:00:51
Late fall And then, if the council is ready, we would actually bid it, say November. 01:00:53
Anticipation that possibly live out as early as January or. 01:01:01
Maybe as late as the spring 2025. 01:01:07
So really, it's the point we're going to say, are we going to do this? 01:01:11
My speaking. 01:01:14
Am I surprising you on what I'm saying? 01:01:18
No, I think that's all. I think we're all committed. 01:01:31
To go forward with this and get the numbers and. 01:01:35
Looking at it and seeing what our timelines look like and. 01:01:38
I think we've got a done deal. We've got to get this. Yeah, I think we don't have to. 01:01:44
We can get the plan set up, but we've got to get the spring lady stuff still in. The council will have some. 01:01:49
Difficult discussions to make in terms of how they're going to find the face. 01:01:54
To me, it all hinges on the. 01:02:01
And then? 01:02:09
Yeah. So we'll see. 01:02:14
Big things going to be to move to and then. 01:02:17
You know, we've got some option in place, but that option could very well be done by then. 01:02:22
And so then it's how do you do it? So we'll. 01:02:28
Yeah, it's not going to be easy. 01:02:36
3 bottles. 01:02:39
OK. In addition to the City Hall project. 01:02:46
Looking at a. 01:02:53
See if we can. 01:02:55
Do some bus shelters. 01:02:57
And we've budgeted about $30,000 for that. 01:03:02
How many shelters does that give you? 01:03:07
Depends on how artistic we want to make. 01:03:10
I think. 01:03:13
From my understanding this requesting from the Council, so if there was a certain number that the Council would like us to target. 01:03:15
If that's two. 01:03:23
I don't think we're going to get more than two out of that, but it could actually just be. 01:03:25
GTA. 01:03:32
We sense any desire to participate. I have talked to ETA about. 01:03:33
Bus shelters. They create classifications and I think there's three different classifications for how busy the bus stop is based 01:03:39
on passenger rides. 01:03:45
Determines the level of improvements for each stop. 01:03:53
They are willing to. They have a program to come in and do upgrades to bus stops. It is exactly to their standard, and it is 01:03:59
according to their priority. 01:04:05
And we have not really seen them do anything in holiday. 01:04:12
Because they feel like they have priorities elsewhere for their money and meet the UK standards, it is somewhat expensive. 01:04:19
To do each bus stop. 01:04:29
Can you do you use their data to determine which bus stops? 01:04:31
So we do have access to their data, their rides, whether or not. 01:04:36
Two busiest ones are like by Holiday Oil, Murray Holiday Road and Highland. 01:04:43
So we could look at the one probably on the West side, which is close to the holiday oil side. 01:04:50
That's the busiest one in the city. 01:04:58
It doesn't really. It doesn't have a shelter, so I would recommend that we consider that one first. 01:05:00
And I would totally agree with that. I think that one's going to be expensive because we don't have right away in that area. 01:05:08
There are some challenges with the application. This is the one that. 01:05:14
Yeah. So if we did that one, then it would probably take all of that. 01:05:18
It very well could. We haven't done. 01:05:25
Much. 01:05:30
Cost analysis on. 01:05:32
Question. Well, I don't think we go above that number. So it's. 01:05:35
We can do too great. But if we can't, I think the point is that. 01:05:40
Test one of these. 01:05:44
See. Sounds great. And then. 01:05:46
It doesn't turn out to be so plain. 01:05:50
Query. So I think it's if we can do a couple. 01:05:53
And look at them and get a feeling for if they've been beneficial then we can have a broader. 01:05:57
You know, future council can have a broader discussion about how they will fund it. 01:06:03
Have a naming right where there was. 01:06:07
Wells Fargo. 01:06:11
New York and stuff like that all the time. 01:06:18
I sat through very painful conversations about this topic in other city capitals. So. 01:06:31
Not worth it, unless it was. 01:06:37
I imagine it might be painful here too. 01:06:40
Just real quickly, a couple other things. We've got two playground surfaces, one here City Park and one at commutes. And how do 01:06:47
you recommend that they be sealed biannually every two years? This one was put in two years ago. We sealed the one that commutes 01:06:53
in two years ago, so. 01:07:00
It's not cheap, so it's about $35,000 to rubber surfaces, but. 01:07:07
It's the difference of having them last five years versus 15 or more years, yeah. 01:07:16
It definitely is. 01:07:24
This is one that in your budget document. I went with a low number and I did not include both parks. 01:07:26
So if you're supportive of this, this is one that I would increase before you adopt. 01:07:34
I think that this makes sense, yeah, for sure. 01:07:42
We work toward giving in alternating years, so that on both well. 01:07:47
Early or one to go three years. 01:07:53
Well, since we are doing it together, there's a $2300 discount. So there is a little bit. It's still the same. 01:08:03
Does it? How long does it shut the playground down for I? 01:08:13
A full day if they do the full surface in a day. 01:08:17
It's like 24 hours. 01:08:22
I think they did the one in canoes in two days last. 01:08:27
Two years ago, so. 01:08:30
I think they did half of the surface. 01:08:33
1/2 And then they slapped it. 01:08:37
I actually call brings up a good point. It's probably too late to do it before school gets outfit. Can we wait until like school 01:08:40
goes back in? Well, there's two things. They do need to do it with certain temperatures. They like the hotter temperatures. And 01:08:46
then if we approve this in July 1st, we wouldn't. 01:08:51
Do it until July well as the school starts August 12th. 01:08:58
So we can maybe wait till the end of August. 01:09:02
Really early. 01:09:11
August 12th, August 12th. August 12th. Wow Yeah, the school ends May 24th. So. 01:09:13
Still be plenty hot and warm and wonderful when they're back at school, yes. 01:09:21
So with that said, UM. 01:09:30
Let's just let me breakdown all the details of pages 90 through 112, I think. 01:09:33
Stop here and answer your questions. 01:09:41
So your biggest challenge still sounds like. 01:09:47
Yes. 01:09:51
I would just stay here. A lot of things like for example the ceiling of these. 01:09:55
I'm very much of an opinion. 01:09:58
To convey the sound of that, any access to the company has fought off on if we're going to own it, we gotta keep it up. Yeah, and 01:10:01
it's super. It's actually, it's irresponsible. 01:10:05
We want to start. 01:10:14
Was that it for your whole presentation? Well, I told you. 01:10:21
There was one. I'm trying to find it now, OK? 01:10:28
I want to talk to you about $400,000 entry for City Hall Park or something. 01:10:33
But the top of page 102. 01:10:41
You got it right, You have it right. 01:10:45
Let me get my wife on the phone. 01:10:50
What is that Gina? 01:10:56
So Jared, I talked about that. We think that is a carryover number from last year. That's when we can look at it a little more 01:10:59
closely. 01:11:03
Where are we going to resurface the parking lot and restrike the parking lot last year? So what we want to do, it was going to be 01:11:09
this year. Well, this spring what we want to actually do is just. 01:11:15
That into the. 01:11:23
Helping. 01:11:25
The remodel work and the seismic upgrade, is there going to be redoing some of this, potentially the South parking lot for that 01:11:28
vegetable if that's included in the work? 01:11:33
That whole slope is going to have a chance, so we decided it could wait another year. 01:11:41
So this is a number that could change. 01:11:47
It looks like we we are past sending has been on statements of our HVAC system in this line item and which is in there we have a 01:11:51
better. We spent about $100,000 for the last couple. 01:11:59
So we're likely to be able to adjust that number downward and then adjust the accessibility services. 01:12:10
So I've asked the consultant to include replacement of all the HVAC units. 01:12:24
The City Hall side and then leave the ones in the police precinct alone because they can freeze or. 01:12:32
Yeah. 01:12:41
We would look at that a little closer, but just because we would be removing much of the ceiling here on our end, we would get in, 01:12:52
do that work. That's not the case on the release side. So I don't know if it's really necessary to go in and tear everything up. 01:13:01
Yeah, so. 01:13:10
That's what we're planning at this moment. 01:13:12
And so I think Dwight had presented those as potential. 01:13:16
Yeah, there is a one. 01:13:22
3/4 of a million to do. 01:13:27
Probably individual thermostat control switch is something we'd want to do. 01:13:30
Is that what we're talking about Mike, so? 01:13:37
We would probably keep the thermostats the same. So like say our executive area, there's like 3 thermostats or even 4. 01:13:39
Each one of those has a heat pump and ceiling above that thermostat. 01:13:48
And those heat pumps are? 01:13:53
17 years old. 01:13:57
And so they've reached the end of their lifespan. They've got old refrigerant R22. 01:13:59
Umm, so we would expect that. 01:14:06
They would start failing. We had like one or two that's failed that's been replaced. 01:14:10
Umm, so yeah, let's we would probably. 01:14:16
Just replace the mall because you can get a better discount if you buy, say, 20. 01:14:21
Versus one at a time. Installation is just a lot less expensive if you install 20 versus 1. 01:14:27
Yeah, I know that was one of the big. 01:14:37
Like add-ons, Yes. And we think each one will cost about 30,000. So it's about 3/4 of $1,000,000. If you wanted to do that, which 01:14:40
if you're going to do this, that's when you should do it, yeah. 01:14:46
For the whole building store, yes. 01:14:53
Arif is that it. 01:14:57
Can you have questions? I would like if we've got. 01:15:00
Time, which we do. Would you mind? Gina and I don't know if you're going to go through this, but. 01:15:05
If this part of your presentation, but I wouldn't mind the Council having. 01:15:09
An idea of what our fund balance position is. I know that's in your budget here. 01:15:14
But I think it's going to be really important for the council to understand. 01:15:20
Where the general fund fund balance sits and where the capital fund fund balance sits. 01:15:25
In terms of what's available to spend, yeah, so general fund fund balance and we can talk about this in more detail. On the 01:15:31
capital side, it's something I'd love to talk with questions about before we get into that side because I think some of it is 01:15:40
related to our bonds. I don't want to provide the council with information that that we have to correct. 01:15:49
But the general fund number I feel really good about talking about. 01:15:58
And that is the front page 30. 01:16:04
Yes. 01:16:09
We have our fund balance the end of fiscal 23 at 7.6. 01:16:12
$1,000,000. 01:16:20
So. 01:16:22
And of that amount, 1.8 is restricted. That is our ARPA, our remaining Artha allocation. 01:16:24
And. 01:16:35
I think the councils previous direction was to look at. 01:16:37
Using that money on. 01:16:44
Per project like. 01:16:46
So that could go into that. 01:16:49
Even though it's restricted, that can go into the spring lane. 01:16:52
So that leads you with five. So if you take that, just keep in your mind you've got 1.8 going into spring lane. 01:16:58
In some kind of phasing that leaves you 5.8. My thinking is that of that $5.8 million of fund balance. 01:17:06
The Council? Always. 01:17:15
We've kind of had this target that we don't want to go below 20% even though the legislative floor is 5%. 01:17:18
We've always kind of wanted to make sure we don't go below 20% to give us ourselves plenty of. 01:17:25
Of money in case of emergency which so is that 5%. 01:17:32
Computer after $22 million budget. 01:17:37
It is. It's off of. 01:17:40
So let's say that's $21 million. 01:17:45
If you're going for 20%, probably want to keep around just. 01:17:51
Under $5 million. 01:17:56
Said any of the other. 01:17:59
Side that you've got a healthy fund balance, and if you don't mind, I'd love to talk about that next week rather than this week. 01:18:05
Yeah, I mean the. 01:18:13
The number I was looking at there is that $12.8 million number, which is probably the one you want to dig into. 01:18:16
But. 01:18:23
My my thinking is that. 01:18:24
Unless I completely out to lunch. 01:18:27
That. 01:18:31
You would be able to probably do one of these projects out of fund balance about going out to a revenue source. 01:18:32
One of the projects being City Hall. They're both at. 01:18:40
They're both. 01:18:43
$10 million projects, right? 01:18:45
So you could probably do one. 01:18:47
With the fund balance. 01:18:51
Depending on how much you want to leave in the capital project. 01:18:53
And I think that will depend on how you want to phase each of these. 01:18:57
Projects and what other potential revenue sources might be available to us. And I'll give you one example of something we're 01:19:01
looking at on the remodel of this building. 01:19:06
We're thinking and Holly and Megan are working on a application for track funding, track funding. 01:19:14
For the entrance portion. 01:19:21
Into the big Cottonwood room. We think that would be a great application because it is a place, it's an arts and culture venue and 01:19:25
that's not it. Although we have been, we've received a lot of track funding over the last several years. We haven't received it in 01:19:33
the arts and culture category, so we think that might be a good application. 01:19:41
Yeah. And there I think there are the opportunities, although you said something about. 01:19:49
When we met with credit school district about the fact that we're leasing the ground from them that May. 01:19:55
Foreclosed some opportunities for funding because we don't own the property. That's right. So and I'll give you a specific 01:20:02
example, there will be a ZAP reauthorization. 01:20:09
Next year. 01:20:20
And so we were trying to talk about how to position our Streamlined project. We're funded from that on. 01:20:21
Our conversations with County indicated that it would be a tough, it would be tough. 01:20:29
Could the school district platform? 01:20:38
Everyone of their properties. 01:20:40
To a park. 01:20:41
Partner with us, we're talking about that and then be the primary applicant. Are you willing to partner with us on some of these 01:20:43
applications? 01:20:46
It seems to me like the way this is going to go. 01:20:51
Is you're really not going to be able to phase this one. 01:20:55
Right. I think this will be tough. There are pieces of it that we might be able to build out, but I think this one would be a lot 01:21:00
tougher. 01:21:04
The cost of exponentially. 01:21:08
But we've got an application with earmark and we've got maybe the so anything we can get. 01:21:12
To help offset the cost, it's going to be helpful because it's money that we could eventually shift over to spring Lane, but 01:21:19
unless, unless the council. 01:21:23
Is considering. 01:21:29
Another revenue source? 01:21:30
Spring Lane is most definitely going to have to be phased. 01:21:33
I think we, I think we everyone. 01:21:37
Like Todd was saying, he thinks this has got to be the priority. The life safety issues here have to be a priority and then spring 01:21:41
lane will just the nature will do the best we can. We'll go after all the pops of money. We can, we'll budget money it, but it's 01:21:47
probably going to be a five year phasing project. 01:21:53
So guys, maybe. 01:22:00
What are the after we use the fund balance and the capital fund, What are the ways that we replenish those funds? 01:22:03
How much do we end up putting in those on average every year? So the last several years we have made a regular transfer and then. 01:22:13
Council policy also says that we can transfer surplus beyond the. 01:22:25
The statutory limitation on general fund. 01:22:34
Fund balance we can transfer surplus they have. 01:22:39
So that's what we're doing. 01:22:42
And it's really again that sales tax growth that has fueled the growth of the capital. 01:22:44
We have. Is there a way to see like over the past three or four years, what we've put into both of those? So kind of like how fast 01:22:49
we can replenish these funds after we suspend is really what I'm trying to see. Yeah, I mean, I can share with you what we have, 01:22:55
what that has looked like the last several years. I just wouldn't expect it to continue at the same rate. 01:23:02
Are you thinking, Gina, that we don't have to budget right now, but. 01:23:13
From a timing standpoint? 01:23:19
The 1.785. 01:23:22
Of our When is our deadline on that? We have to. We have to. 01:23:26
Allocate those funds by the end of this year and then extend them by October 20 or December 26th. 01:23:32
And what's the allocation vehicle? I think it would be a budget amendment. So we what we may want to just make a budget of this 01:23:39
year to move it to the capital improvement. 01:23:45
Fund for the park. 01:23:51
Yeah, I mean, right now it's restricted for the park. I think we'd want to create a budget for it, basically. 01:23:53
Should we go forward with this, we can add a $2,000,000 piece in the budget. 01:24:05
For whatever we do it for space because we've got to spend that 1.785 anyway. So that's a pretty good chunk right under The Cave, 01:24:11
right, to maybe do The Walking, walking traffic around. Yeah. If we know that that's roughly what we have for the phase one, is 01:24:17
that worth it to tell MHCN like this is roughly what we're thinking for phase one, what do you recommend being that first phase 01:24:23
because we kind of talked to them, that's what we were wanting to do. But at least at that point, I don't think we had any numbers 01:24:29
as far as. 01:24:35
What we thought we could spend, yeah, we meet with them on a regular year and so we can have that conversation, the other 01:24:41
potential and this is something we need to. 01:24:46
Explore a little more carefully, but we have. 01:24:53
Some art of funds in stormwater that. 01:24:56
We might be able to. 01:25:00
I apologize, but. 01:25:05
The on the famous system, it was mentioned before, but is there's nothing with this project here that those are funds could 01:25:12
qualify for? 01:25:16
I mean, that's a great question. When we talked about it before, we weren't really. 01:25:20
This project. 01:25:27
There's a ton of arbitrage, and that's something I could take a closer look at. The reason I say that is because if we could, 01:25:31
we're gonna send this sooner. And then the other thing is, I hate to dump 2,000,000 bucks into spring land. 01:25:37
And. 01:25:45
With so many grand, you know. 01:25:46
Qualifications that we cost share and things like that. 01:25:49
Going to be and if we're going to phase it anyways, I'd like to. 01:25:52
I agree. I just was presuming that Arco was not available for here because I agree this is the priority. 01:25:57
But it's not we got to spend it, not here then decision here is going to be. 01:26:05
You know how you pull the trigger and when you pull the trigger. 01:26:13
I'm moving. 01:26:16
Yeah, that's going to be a big deal. 01:26:19
Well. 01:26:23
At what point have we talked about that? 01:26:26
Off the situation and. 01:26:29
Does anyone have that discussion on the relocation? I mean, it's such a unique opportunity that, you know, almost better off to 01:26:35
sucking down the rent. 01:26:41
Securing it, you know what I'm saying? 01:26:48
And hustling really right. 01:26:51
We can talk about that offline, but. 01:26:57
I mean, if we're committed to doing this, we're going to do it. 01:27:00
I don't want to, but I think it's the sort of thing to do. 01:27:04
But it's one of those things where you'll be really, really glad you. 01:27:10
That probably the piece that will require the most sort of public education engagement justification, operational inflation, 50% 01:27:15
nothing but the big project that's probably the one that's going to require that. 01:27:22
The public buying. 01:27:29
I think you're right. We have a meeting set next week to start. 01:27:31
Strategy around that. 01:27:35
And position like yeah, the alternative is to $40 million Creek. 01:27:38
I do have an update. 01:27:56
Creek runoff. 01:28:00
Yes. 01:28:02
Yeah, I got a presentation from the county, today's Salt Lake County Flood Control. They monitor the snow tell sites and the 01:28:05
runoff and the prediction is? 01:28:10
No concerns about flooding. Nothing like last year. 01:28:17
And the reservoirs are full. 01:28:24
Worth pretty full, but runoff is coming up as. 01:28:25
Could expect, and there's no race for concern. 01:28:33
And it's 130% or so normal? 01:28:41
About yeah. 01:28:45
Does that include the three feet they got yesterday support? 01:28:47
But their data was as accurate as of yesterday, so it included the weekend. 01:28:55
Precipitation 01:29:03
People are seeing deep powder. 01:29:05
Hey, before we get out of here too, just a reminder to everybody that you know as you're going, as you're going through this, if 01:29:09
you've got questions like on Jared, so freaked out. And if you're going through some of the detail and you want some clarity or if 01:29:16
you want to link up with Gina for a private session, it's always asked if you can partner with somebody. 01:29:23
Had respect for her time. If you want to get with her and Christian to go through stuff, or if you just want to go through the 01:29:30
whole budget over a couple hour period, make sure your questions are answered. Feel free to do it. 01:29:36
But this is like. 01:29:43
A lot of detail compared to what we used to get five or six years ago. 01:29:45
Yeah, I mean, when Randy used to do it, it was like. 01:29:51
Excel spreadsheet that was. 01:29:55
Not long ago. 01:29:58
Doesn't take long to allocate $100,000. You know, we got 150,000 for the capital project fund. 01:30:01
How do you like this? 01:30:13
Move to adjourn. 01:30:21
Aye, aye. 01:30:37