You're still texting. Izzy, where are we at? Connie Moore. Not in my schedule. You scheduled it when you teep on that minivan and sent two people to the hospital. Guess you was paying more attention to that thing than the road. Making sure my wife picks up my suit. Sounds like a text message that just couldn't wait. Texting and driving. A killer combination. Recreation in parks. The days begin when the sun rises. Most of our workspaces don't have four walls or a desk. But there's a lot to be done to get this place up and running. It takes a big team to cover so much ground. Each space is unique, requiring its own special method of care and service. And it's of utmost importance to see that it happens each day, because our workspace is your leisure space. And it includes 950 acres of Santa Rosa. It's the parks, the trees, the fields, the trails, special gathering places, community spaces. And it belongs to everyone. We work for our community. Striving to improve quality of life. We provide family experiences, friendly competitions, leisurely evenings, and places to bond with man's best friend. We create space for celebration, relaxation, and artistic expression. You can learn to serve a ball or learn to serve a meal. Take a walk on a path or walk the plank. We've got beautiful settings, space to show off our history. We have room to roam, to roll, or to run. We allow for the silly, the serious, the cool. We offer countless ways to work on your health. We keep our youth safe and teach them to keep others safe. We challenge people to want to challenge themselves. We foster creativity, guide athletes, hone passions. We allow for little minds to dream. And we'll keep doing what we do each day, because we know that for our community, fire's made life better. You steal text. I had on a daycare know that I'm running late. They charge if you're late. And I'm not usually one of those people to text and drive. And I was almost done with my text when that car came out of nowhere. You still appeared in all coming traffic. When I text message, it never got through. One text or call could wreck it all. I don't text it. Is this real morgue? Yep.  Oh, I got to text Ashley. Ashley identified you when you wrapped your car around that light pole because you was caring more about that thing than a room. How do you feel like doing that? Not anymore. No text messages worth a life. Over 90 miles of creeks run through Santa Rosa, run off from streets, roofs, and parking lots, end up in our creeks through the storm drain system. To help protect creeks, keep your street gutters and roadside ditches clear of trash and other pollutants. For more information on the benefits of our creeks and tips on how to enjoy them, visit the Stormwater and Creeks webpage. You steal text. Fizzy, where are we at? County morgue. Not on my schedule. You scheduled it when you tip on that minivan and sent two people to the hospital. Guess she was paying more attention to that thing than a room. Making sure my wife picks up my suit. Sounds like a text message that Jess couldn't wait. Texting and driving. A killer combination. And tourism, out there. The creation in parks, the days begin when the sun rises. Most of our work spaces don't have four walls, or a desk, but there's a lot to be done to get this place up and running. It takes a big team to cover so much ground. Each space is unique, requiring its own special method of care and service. And it's of utmost importance to see that it happens each day, because our workspace is your leisure space. And it includes 950 acres of Santa Rosa. It's the parks, the trees, the fields, the trails, special gathering places, community spaces, and it belongs to everyone. We work for our community. Striving to improve quality of life. We provide family experiences, friendly competitions, leisurely evenings, and places to bond with man's best friend. We create space for celebration, relaxation, and artistic expression. You can learn to serve a ball or learn to serve a meal. Take a walk on a path or walk the plank. We've got beautiful settings, space to show off our history. We have room to roam, to roll, or to run. We allow for the silly, the serious, the cool. We offer countless ways to work on your health. We keep our youth safe and teach them to keep others safe. We challenge people to want to challenge themselves. We foster creativity, guide athletes, hone passions. We allow for little minds to dream. And we'll keep doing what we do each day, because we know that for our community, parks make life better. You steal text. I had on a daycare know that I'm running late. They charge if you're late. I'm not usually one of those people to text and drive, and I was almost done with my text when 10th car came out of nowhere. You still appeared in all coming traffic. And that text message, it never got through. One text or call could wreck it all. I'm still texting. Is this real, Morg? Yep.  Oh, I got to text Ashley. Ashley, identify you when you wrap your car around that light pole, because you was caring more about that thing than the road. How do you she like me? Not anymore. No text messages worth a life. Over 90 miles of creeks run through Santa Rosa. Run off from streets, roofs, and parking lots, end up in our creeks through the storm drain system. To help protect creeks, keep your street gutters and roadside ditches clear of trash and other pollutants. For more information on the benefits of our creeks and tips on how to enjoy them, visit the Stormwater and Creeks webpage. You're still texting. Izzy, where are we at? Connie Morg? Not on my schedule. You scheduled it when you tip on that minivan and sent two people to the hospital. Guess she was paying more attention to that thing than the road. Making sure my wife picks up my suit. Sounds like a text message that just couldn't wait. Texting and driving. A killer combination. In recreation and parks, the days begin when the sun rises. Most of our workspaces don't have four walls or a desk, but there's a lot to be done to get this place up and running. It takes a big team to cover so much ground. Each space is unique, requiring its own special method of care and service. And it's of utmost importance to see that it happens each day, because our workspace is your leisure space. And it includes 950 acres of Santa Rosa. It's the parks, the trees, the fields, the trails, special gathering places, community spaces, and it belongs to everyone. We work for our community. Striving to improve quality of life. We provide family experiences, friendly competitions, leisurely evenings, and places to bond with man's best friend. We create space for celebration, relaxation, and artistic expression. You can learn to serve a ball or learn to serve a meal. Take a walk on a path or walk the plank. We've got beautiful settings, space to show off our history. We have room to roam, to roll, or to run. We allow for the silly, the serious, the cool. We offer countless ways to work on your health. We keep our youth safe and teach them to keep others safe. We challenge people to want to challenge themselves. We foster creativity, guide athletes, hone passions. We allow for little minds to dream. And we'll keep doing what we do each day, because we know that for our community, parks make life better. You steal text. I had on a daycare know that I'm running late. They charge if you're late. And I'm not usually one of those people to text and drive. And I was almost done with my text when 10th car came out of nowhere. You still appeared in all coming traffic. When I text message, it never got through. One text or call could wreck it all. Is this real, Morg? Yep.  Oh, I got to text Ashley. Ashley, I identify you when you wrap your car around that light pole, because you was caring more about that thing than a road. Is she like me? Not anymore. No text messages worth a life. Over 90 miles of creeks run through Santa Rosa. Run off on streets, roofs, and parking lots, end up in our creeks through the storm drain system. To help protect creeks, keep your street gutters and roadside ditches clear of trash and other pollutants. For more information on the benefits of our creeks and tips on how to enjoy them, visit the Storm Ordering Creeks web page. You're still texting. Izzy, where are we at? Connie, Morg? None of my schedule. You scheduled it when you tip on that minivan and sent two people to the hospital. Guess she's paying more attention to that thing than a road. Making sure my wife picks up my suit. Sounds like a text message that just couldn't wait. Texting and driving, a killer combination. Recreation in parks, the days begin when the sun rises. Most of our workspaces don't have four walls or a desk, but there's a lot to be done to get this place up and running. It takes a big team to cover so much ground. Each space is unique, requiring its own special method of care and service. And it's of utmost importance to see that it happens each day because our workspace is your leisure space. And it includes 950 acres of Santa Rosa. It's the parks, the trees, the fields, the trails, special gathering places, community spaces, and it belongs to everyone. We work for our community. Striving to improve quality of life. We provide family experiences, friendly competitions, leisurely evenings, and places to bond with man's best friend. We create space for celebration, relaxation, and artistic expression. You can learn to serve a ball or learn to serve a meal. Take a walk on a path or walk the plank. We've got beautiful settings, space to show off our history. We have room to roam, to roll, or to run. We allow for the silly, the serious, the cool. We offer countless ways to work on your health. We keep our youth safe and teach them to keep others safe. We challenge people to want to challenge themselves. We foster creativity, guide athletes, hone passions. We allow for little minds to dream. And we'll keep doing what we do each day because we know that for our community, parks make life better. You steal text. I had on a daycare know that I'm running late. They charge if you're late. And I'm not usually one of those people to text and drive. And I was almost done with my text and then the car came out of nowhere. You still appeared in all coming traffic. And that text message, it never got through. One text or call could wreck it all. You still texting? Is this the real morgue? Yep.  Like with real dead people. Oh, I got to text Ashley. Ashley identified you when you wrapped your car around that light pole because you was caring more about that thing than a road. You she liked me? Not anymore. No text messages worth a life. Over 90 miles of creeks run through Santa Rosa. Run off on streets, roofs, and parking lots and up in our creeks through the storm drain system. To help protect creeks, keep your street gutters and roadside ditches clear of trash and other pollutants. For more information on the benefits of our creeks and tips on how to enjoy them, visit the Storm Ordering Creeks webpage. You still texting? Izzy, where are we at? County morgue. Not on my schedule. You scheduled it when you tip on that minivan and sent two people to the hospital. Guess she was paying more attention to that thing than a road. Making sure my wife picks up my suit. Sounds like a text message that just couldn't wait. Texting and driving. A killer combination. In recreation and parks, the days begin when the sun rises. Most of our workspaces don't have four walls or a desk, but there's a lot to be done to get this place up and running. It takes a big team to cover so much ground. Each space is unique, requiring its own special method of care and service. And it's of utmost importance to see that it happens each day because our workspace is your leisure space. And it includes 950 acres of Santa Rosa. It's the parks, the trees, the fields, the trails, special gathering places, community spaces, and it belongs to everyone. We work for our community. Striving to improve quality of life. We provide family experiences, friendly competitions, leisurely evenings, and places to bond with man's best friend. We create space for celebration, relaxation, and artistic expression. You can learn to serve a ball or learn to serve a meal. Take a walk on a path or walk the plank. We've got beautiful settings, space to show off our history. We have room to roam, to roll, or to run. We allow for the silly, the serious, the cool. We offer countless ways to work on your health. We keep our youth safe and teach them to keep others safe. We challenge people to want to challenge themselves. We foster creativity, guide athletes, own passions. We allow for little minds to dream. And we'll keep doing what we do each day because we know that for our community, parks make life better. You steal text. When I handle a daycare, know that I'm running late. They charge if you're late. And I'm not usually one of those be able to text and drive. And I was almost done with my text when that car came out of nowhere. You still appeared in all coming traffic. When I text message, it never got through. One text or call could wreck it all. You steal text. Is this the real mort? Yep.  Like with real dead people. Oh, I got to text Ashley. Ashley identified you when you wrapped your car around that light pole because you was caring more about that thing than the road. How new she liked me. Not anymore. No text message is worth a life. Over 90 miles of creeks we run through Santa Rosa. Run off from streets, roofs, and parking lots, end up in our creeks through the storm drain system. To help protect creeks, keep your street cutters and roadside ditches clear of trash and other pollutants. For more information on the benefits of our creeks and tips on how to enjoy them, visit the Stormwater and Creeks webpage. You're still texting. Izzy, where are we at? Connie Moore. Not in my schedule. You scheduled it when you tip on that minivan and send it to people in the hospital. Guess she's paying more attention to that thing than the road. Making sure my wife picks up my suit. Sounds like a text message that just couldn't wait. Texting and driving. A killer combination. In recreation and parks, the days begin when the sun rises. Most of our workspaces don't have four walls or a desk, but there's a lot to be done to get this place up and running. It takes a big team to cover so much ground. Each space is unique, requiring its own special method of care and service. And it's of utmost importance to see that it happens each day because our workspace is your leisure space. And it includes 950 acres of Santa Rosa. It's the parks, the trees, the fields, the trails, special gathering places, community spaces, and it belongs to everyone. We work for our community. Striving to improve quality of life. We provide family experiences, friendly competitions, leisurely evenings, and places to bond with man's best friend. We create space for celebration, relaxation, and artistic expression. You can learn to serve a ball or learn to serve a meal. Take a walk on a path or walk the plank. We've got beautiful settings, space to show off our history. We have room to roam, to roll, or to run. We allow for the silly, the serious, the cool. We offer countless ways to work on your health. We keep our youth safe and teach them to keep others safe. We challenge people to want to challenge themselves. We foster creativity, guide athletes, hone passions. We allow for little minds to dream. And we'll keep doing what we do each day because we know that for our community, parks make life better. Welcome to our study session this afternoon. Madam Clerk, could you announce the role, please? Let the record show that all councilmembers are present with the exception of councilmembers Carlstrom and councilmember Oliveris. Thank you very much. Mr. McGlynn, would you introduce our study session, please? Yes, item 2.1, review of fiscal year 2016-17 department budget requests, capital improvement, programming funding requests, and community promotions funding requests. And I've got to, I have a, before I turn it over to Debbie Lochner and a lot of the other leadership team to present, I have a few opening comments to make. I think what you have in front of you is a responsive and responsible budget for the upcoming fiscal year. It takes to heart your tier one priorities of housing for all, achieving functional zero and homeless, Rosalind annexation, wrestling with the medical cannabis issues and dealing with our infrastructure. In light of that, I think it's, one of the things I forwarded the council yesterday is the results from some polling that were going around the Bay Area. This specifically done by the Metropolitan Transit Commission and looking at what was of concern and where they could potentially go to achieve some revenue to address the concerns. And chief among those concerns were road conditions in the Bay Area and affordable housing. And in fact, affordable housing was the highest area of concern in the survey document. And I think that really addresses where the council has provided direction to staff and what we're trying to wrestle with and bring solutions forward for the council to move the community forward. Having said that, I think that this still the issue that remains very difficult for staff and very difficult for us to plan long-term around and realize a vision around is the expiration of measure P. And so that does create a concern and uncertainty, uncertainty for the city, uncertainty for addressing your vision, uncertainty for the staff and the community. And I think you're gonna get an opportunity over the next 90 days, not only wrestling with the current year budget, but to think about the polling results that are gonna be moving from this Bay Area example that I forwarded you yesterday to very specific questions about the wants, the desires and the needs within the community at large. And so with that is just my basic introduction. I'm now gonna turn it over to Debbie Lochner to begin the budget presentation. Thank you. Thank you. Good afternoon, Mayor and council members. Today we're going to again go over the council goals and priorities of which our city manager just outlined our tier one priorities. We're going to talk about a general city wide overview of the budget. We'll talk about the general fund in a big picture and go over our FTEs, long range financial plan. And we'll talk a little bit about our transfer tax, our real property transfer tax revenue and how that is transferred over to the housing fund for housing and homeless services. And then we go through part of our department proposals today, the balance will be on the 17th of May. So again, to remind the overall great overarching goals the council has, there are six of them of which two is split into A and B. We have create a strong sustainable economic base, promote the city organization that is service sustainable and maintains employee morale, a financial sustainability, provide leadership for environmental initiatives, maintain and enhance the city's culture, historical and recreational assets, improve partnerships between neighborhoods, community organizations, schools and the city to support and promote thriving inclusive and diverse neighborhoods and commit to making Santa Rosa a healthy community where people feel safe to live, work and play. As our city manager mentioned, the tier one priorities are to reduce homelessness through a comprehensive strategy, develop a comprehensive housing strategy, housing for all, and including increasing housing, city-wide market rate, workforce, affordable, all those aspects of it attract housing to the downtown, do downtown and transit oriented and address rent stabilization. That's quite a large tier one priority. The third one is create a plan to address infrastructure and deferred maintenance throughout the community. The fourth one is to pursue current opportunities for medical marijuana, cannabis cultivation, laboratory and employment development, prepare for the impacts of legalization of marijuana. And finally, but not least, complete the Rosalind annexation and move to implementation. I won't read all of the tier two priorities, but there are four main tier two priorities which are implement our rental inspection program, ensure long-term revenue stability. This is primarily dealing with measures OMP, support the smart train connectivity, transit oriented development and the Southeast Greenway project. So with that, we'll get to an overview of the total city budget. And so city-wide, we have revenues projected to be about $354 million. And you can see how those are broken up, enterprise funds and the general fund taking the largest share of those dollars or bringing in the largest share of those dollars. Reminder that enterprise funds are self-supporting funds such as water, sewer, the sub-regional system, golf, parking and there's one I'm missing, but those are all self-supporting. So they charge fees to support the maintenance and operations of what they are managing. Then we have just some small other pieces, successor agency to the redevelopment agency, which is essentially a pass-through at this point for debt service. We have our housing authority, which the largest portion of their revenue comes from the federal government to support the HUD programs. And we have some special revenue funds and some other funds that, and I could give you examples if you want them. What we've done now is we wanted to show you city-wide. So we show you general fund and other funds for each department. What you have highlighted here are the departments that are brand new. So they, through a reorganization, these departments are brand new departments. So as you'll see in the presentation when we get to these departments, we haven't done a lot of comparison with past because they are reinvented. And so it's hard to compare when it's not the same thing. So overall, you can see that the general fund makes up about $145 million of the budget and the other funds bring in about $218 million. And then I show you also a picture so that because sometimes it's easier to see in a pie chart how the funds are broken up rather than just looking at percentages and high-level numbers. So a total-wide, city-wide expenditures, $363.5 million. Ms. Locke, I'm going to interrupt you just for a second. Let the record reflect that Council Member Carlstrom has joined us at the dais. Welcome. Also, there of course will be a great deal of information shared with us this afternoon. There is a good chance that I won't necessarily be turning my head and noticing comments or questions you might have at any one point. So please feel free just to speak up and move forward because I don't want you to lose your question. So we'll kind of become a little less formal during this presentation this afternoon. Thank you very much. So this is to just show you the numbers behind the expenditures by fund. So that's just another way to show you the same expenditure budget, but just by fund. So as we get into, we'll talk about the general fund and this is going to be high-level and you will see department-specific numbers behind some of the expenditures that you'll see. So you'll see large numbers and big increases but remember that it does go across all departments and all funds so we just want to talk briefly about the general fund as our main operating fund which is the city's discretionary fund. It's primarily funded with taxes, property tax and sales tax being the largest drivers of those tax revenues. You will see that the sales tax revenue is a lot higher than what we budgeted last year and what sales tax includes is the money from the triple flip and this is the last year of the triple flip. This is the last payment. We get a settle up payment in 16, 17. So this is the state, I don't want to say gimmick but this is what the state did when they took sales tax revenue from all the cities statewide. They used that to pledge as revenue for bonds and then they backfilled us and they called it sales tax but they tied it to property tax. So because over the last couple years we have seen a growth in our property values, our property taxes have gone up and as a result we've gotten larger portion of sales tax through that triple flip that's tied to property tax growth. Again, this will be the last year it'll next year flip back into property tax and then we'll not have to try and figure out how the sales tax is gonna grow on an annual basis. When you look at the sales tax just pure sales tax it grew at about 3.6%. So all this other growth in sales tax is essentially due to the triple flip. In 16, 17 we get a settle up payment of about $4.6 million that's one time money that is built into this budget. Can you tell us what are you projecting sales tax growth to be in the coming year? 4%. We have, it was, yeah. We have, it's property tax that we were, we had pulled down to 1% for a couple years and sales tax generally grows at 4% a year so we are projecting 4% a year. We are also cautiously watching the sales tax from the auto industry because we think there might be a little bubble there and we could see a drop in this revenue has not come forth yet but we are watching that sector of the industry to make sure that we're prepared if that does happen. So for the past year you said it's been 3.6% growth. About 3.6% was the growth last year. And we're not seeing that start to level off. We're still seeing pretty good growth. In fact, we are outpacing most places in California and in Sonoma County. So if you look statewide and if you look just Sonoma County, we are usually on the high end. Okay, thank you. I'd like to follow up on that sales tax because I'm looking at the long-term financial planets at our desk. I see the budget for 15, 16 sales tax and this is exclusive of triple flip, 32 million budget for 16, 17, 37 million. That's a $5 million increase over 32 million. How is that 4%? Well, no, it's 13.6%. Correct. But the, I don't know. I'll have to get back to you on that one. There's something, we at mid-year did recognize there was growth in this but we did not adjust our budget. So what you're looking at is the budget figure on the actuals. So unlike, it was a recent matter that we kept always on the water, proposed water budget. They kept compounding based upon the budget. We're actually going back to the actual on revenue. Yeah, we look at each year, we look at the actuals where we are to date. We do an analysis and try to project what our revenue is going to be for the next year and then we roll our tenure plan off of our projections. Okay, if I'm sure that's probably been double checked but that's a big jump, I just want to make sure you're comfortable with it. I am. Okay, thank you. So this is a picture to show you the general fund revenues by category. And then we have expenditures by department. And again, because there was a reorganization, so in administration you see that, that increased significantly, but that is also because the finance department increased by 52% staff-wise when we took on parking. So it's not a new department, but it is a radical change for that department. And that's why you see administration growing at such a great figure. Also, we have added some limited term staffing and some other stuff that you'll see within each administration department, you'll get a chance to see what has been added and how we are addressing those tier one priorities. And again, we do like to show you a picture because sometimes the numbers can be baffling and there's a lot of them. So overall, this is a picture to show you by department how the general fund spends its dollars. And then we also- Excuse me. Yes. The image on slide 15 and the information on slide 14 include the change in housing and community services to have the code enforcement. What this includes is every department's proposal for 16, 17 and when we get to housing and community services they can tell you exactly what's in their budget and what's been added to help them navigate through those processes. So even with the addition of whatever's coming forward to us, they will be at 1%. So there's gonna be, as we go through the process of each department there are different phases of where they need to be. And so honestly with the issues facing code enforcement we're in a development process to bring you back a fee structure to address that. I do not believe that we will be ready to premiere that in the budget cycle. It'll probably have to be an in-year adjustment. So right now as the budget stands, it is 1%, we're gonna be bringing forward you a fee schedule and adjustments because we have to build that and we're in the process of constructing that. Okay, I'm looking forward to the construction process. Absolutely. And we've done that before and when we get to that part you will see that in the housing and community services. It's just that we're gonna be bringing that forward as a conversation so that likely will change with associated fees to support a rental inspection program.  I was gonna say in addition, this is general fund only and so before you wouldn't have seen housing and community services necessarily on the slide because they were primarily funded through federal grants. So this does reflect just the piece that is general fund. One other question on this chart, police and fire make up 57% of the general fund budget. Can you tell us how that compares to this year's budget as a percentage? I believe this year's budget, it was 53%. Just going from memory from the discussions we had over measure O and the percentage that we were looking at, but I'll have to get the right number. It should be real close. Okay, it seems like it was closer than 53 this year, but if you can get that information. I'll have to get that because I can't remember exactly what that percentage was, but I do have it available. Okay, so again, we do show the expenditures by category and as you will see there are increases in salaries and benefits as we always have, there are increases in those items. We have added some targeted positions to help make address some of the city's needs. And in the other, so benefits costs are primarily driven by CalPERS and healthcare. CalPERS does provide us a five-year smoothing of their rate increases, so you don't get it all in one year. However, healthcare, it's whatever the charge is, you get it. And as you'll see in our property, you see liability and property insurance increased and you'll see later when we talk about risk management, a 6% increase in our health insurance premiums equates to $730,000. So it's a small increase is a large impact on the city organization because they're large dollar price tags. Mr. Mayor, just quickly. I know that we are participating with the county in the healthcare sort of bargaining consortium. How is this number going to impact that? Will it, has it been brought up already? It will not impact this figure. I think you're talking about a longer-term planning effort to address this issue, but we're engaged in that. We're providing resource to support the effort, but it's not gonna impact this particular budget cycle, it just can't. It is a much more complicated conversation. We're looking at a variety of ways to impact that and we'll be bringing back our report to council once we have some recommendations. But right now it's those are ongoing conversations as the partners in that conversation will attest to. Great, I appreciate the information. This is one of those issues that comes up for me every year we do a budget and I just, it would be interesting. Well, and in addition council member. Your microphone. In addition council member, that is as you'll, as you're, if you look at long-term trend analysis, that's one of our chief areas of concern that actually eats away at our ability to do a variety of things, those continually rising costs around healthcare. In fact, we'll share with you if we haven't already that that's actually our biggest percentage gain. It's more of a pressing issue for us than even the PERS issues. I mean, healthcare costs just continue to exponentially grow. And I understand that we are somewhat limited in the parties with whom we can bargain and negotiate for provision of those healthcare services. But as always, it would be very interesting to have them present a justification for their rent increases to this council. Or potentially explore energy usage at some of those facilities. Okay, again, we like to show you the picture of the expenditures by category just so that you can look at it in a visual format. One thing that we wanted to just explain to you is our transfers in and transfers out and the overall cash flow picture. So on the right of this particular slide, you see the cash flow. So this is the general fund cash flow and we have about $200,000 available at the end of once we get through all the budget and you see what's in there. There's about $200,000 remaining unspent. What we show on the left of this slide is to give you the detail of what gets transferred into the general fund and what gets transferred out of the general fund. The general fund receives money from various other funds for services that it provides. So gas tax provides some money for some street maintenance, crew work. Measure M provides some funding. There's traffic safety funding, the Consumer Protection Act trust fund, which you will hear about more in the city attorney's budget is providing some funding to this budget. So overall, the general fund is receiving about $2.8 million from other funds to provide the services that the general fund is committed to providing this coming year. On the transfer outside, we transfer almost $2 million out to our CIP program. The biggest piece of that is $1.2 million that goes to ADA improvements throughout the city. And that's an ongoing project and has been for several years and we continue to fund that to maintain our good graces with the Department of Justice. We also do receive money from, we send money out to homeless and services and affordable housing. The bulk of this money would be the real property transfer tax, but well, it's actually about half and half general fund and real property transfer tax. And you'll see that in just a few minutes when we talk about the real property transfer tax, how much comes from real property transfer tax and how much comes just from general fund support for those programs. We also transfer out some money to parking enforcement. That's to pay for the staff that does the parking enforcement. The ticket revenue comes into the general fund and we support the parking fund, parking enforcement team with the monies that is collected by that revenue source. In addition, yes. If I could just, because it's my own point with last question. Is that part of the permits and fines? I wanna say it was $9 million and so on the previous. That would be part of the permits and fines, but there's a lot in there that it's not just parking enforcement. Because we hear a lot that you make money on parking. I hear a lot. So. I'd like that broken out. Overall, the way an enterprise fund works is we set the fees in order to maintain the operation and the assets that the operation has. And this is for all enterprise funds. So the parking fund manages all of our parking assets and they collect fees in order to maintain those assets for future generations, for us and future generations to make sure we have nice good places to park and that they're well maintained and clean. So that's. No, no, I appreciate that. I would just like in the formal budget to at least have a notation what the offset is so that people can see that easily. The CIP of 1.85, you'd mentioned the ADA portion of 1.2, roughly two thirds for many years. Do you know when that began? I do not. Okay. It's approximately 2008. Thank you. And then is this our total debt service, the $500,000? That's the general funds component. Got it. Thank you. So that was gonna be my next thing is COPs. That's the general funds payment to the debt service on our existing COPs. The information technology that is every department that is general fund funded pays an IT rate and this is the general funds total obligation to pay for IT services. And then there's some other small stuff, so. And just for the public's information, could you tell us what COPs are, please? Certificates of participation. They are a lease financing type of debt that cities can get. Can you give a couple of examples of where those are being used in the city? So one thing we did purchase is just not paid by the general fund. We did some COP issuances to build some, to build the facilities out of the golf course and the golf fund pays for those. We are, I'm not sure exactly what all the other issues were. There were the, they did some infrastructure throughout the city and there was a redevelopment component which got paid back when we settled the lawsuit. We paid back all those monies, but there was money that went for redevelopment projects. There was money that went to general fund projects and there was money that went to the golf course in a total COP package. And then we pay for it separately. And I can give you some more examples. So yes, and this is the ongoing mechanism under which courthouse square will be financed as is currently proposed. We're exploring other options, but this would be one of those where this would reside. Yeah, and that's fine if you can give us some other examples in addition to the golf course, that would be helpful. I can. Thanks. So overall, the general fund transfers out to other funds that provide services that the general fund's responsible for of about $5.4 million. So we want to talk a little bit about the staffing and as you can see the, so we show in the highlighted column, that's the change. So you see what was in place in 15, 16, and what the change was and then what's in proposed for 16, 17. This overall talks about every department. Again, we have two new departments. So we, or three new departments actually, we tried to show them together. So when you'll see EDH, the old department and then below you see HCS, the new department.  And this one actually takes two slides to get through because there's a lot of departments. But to show overall, our request for 16, 17 is to have an FTE count of 1,265 and a quarter people. So we do like to show this also on a graph just to show history of how we've been staffed in the past and what we're looking like in the future. And just- Question. Yes. I note that the previous slides had authorized, I assume that this slide also means authorized as well. Yes. How many positions are filled or unfilled? That one I do not have an answer for right now and it changes pretty much all the time, but I can give you, I can give you a... We have a history though of what was filled for the previous years. Yes. We can show what was vacant and what was filled, but we'd have to pick a point in time.  Well, the goal is to have them all filled because essentially in order for us to provide the service that you've authorized us to provide and given us the resources for, this is the staff that we say we need to do that off. So Council Member, are you looking for an overlay with this slide in the future that would, and we'll provide it this year that would mirror what the vacancy rate at the end of the year would be. So I'm trying to just so currently we have, so for example, on 15, 16, would the point in time be closed? I mean, what I think Debbie's trying to say is that vacillates month to month. So I'm just trying to figure out where's the snapshot that you're trying to get because we have tuition, it varies. I understand that I don't care when the snapshot is as long as it's consistent year by year by year because what I wanna get a grasp on is, yeah, the goal is to fill all of the budget but once our budget is based upon authorized staff and if there's unauthorized staff, that means there's excess money in the budget for various departments. That's what I'd like to get a better handle on. We'll try to answer that question. Again, some of this goes with the time of year, the nature of the recruitment, but we'll try, now that I have a better idea, we'll try to figure out how to answer that question. Okay, you understand, I'm just saying that the authorized positions drives the budget number and if that's different, I wanna know where it's. Yeah, and I understand what your concern is and we'll address that. So then we also wanna just show you the changes that were per the reorganization versus what we've added into the 16-17 budget proposal. Just so you can see, within the city manager's office, there was a reduction of seven positions because those went to the office of community engagement as a separate department. In addition, and you'll see each department will talk about their overall staffing adjustments and how that's in the budget for their departments. Again, you see housing and economic development in housing as an eliminated department, it has no staff, but then you have housing and community services and you have planning and economic development, which is, and finance where their staff went. So overall, you can see what happened based on reorganization and what is actually a new proposal in the existing, or that's before you, or will be before you in June. Again, that takes two slides. We also wanna talk to you overall about the changes in the general fund and most, while we added a lot of, we've added staff and I wouldn't say it's a lot, but we have added staff, many of these positions are funded through other sources. For example, in planning and economic development, they added a building inspector position, but they eliminated a contract that was providing that service. So as we assess our operations, if we find that we have sustainable ongoing need for staff, we eliminate the contract and change that to a full-time staff position. And that essentially has no cost to the general fund because we've just done a swap on how we're providing that service. So in total, we have added 10.6 positions to the general fund. A lot of them, like I said, are self-funded somehow and you'll find out about how these are funded when we talk about each individual department. As far as the non-general fund, we have overall added five positions in non-general fund departments. Now our long-range financial plan, this is something that we talk about quite often and I did put a handout on your page. I know you can all recognize it from here and probably read the numbers because it's the colorful paper. In addition, we did provide you with a comparison of budgets to actuals for as many years as we were able to get in our new, in our current financing finance system. Things are a little different in the new finance system, so we couldn't go back quite as far as we would like to, but we did give you a pretty good four-year comparison. Debbie, on this one, I was looking at last year's long-range financial plan and I'm wondering if you could comment on the differences just within one year. For example, the last year's estimate for fiscal year 16, 17, the total revenue was 144. The actual is 150 million. As you start looking, so for a one-year distance forecasting it out and once you get down to the surplus deficit, those numbers exponentially get quite large. Can you explain, again, that's just one-year difference because what I'm trying to understand is how accurate of a prediction of the future will this be? And I know when I've asked this question earlier, you were relatively new in the position and some of the variables may have changed. Can you share with me about the year-to-year differences with these projections? Year-to-year, a budget is really a projection of what's gonna happen. So we do our best to project our revenues and we're not always 100% accurate because we're doing our best to guess that. We do have some outside consultants that help us with a couple pieces of that and they're not always accurate either. So we take all that information and we do our best to project our revenues. What we do is then we monitor them throughout the year. If something comes in that's significantly greater, we mention that at the mid-year process to say that, hey, our revenue's coming in much greater than expected. So from the revenue side point, the finance department manages that pretty well and what we do is we each year, we do a reset on the 10-year plan. So we take what are our actuals when we come up with our projections for 16-17 and then we roll the plan off of the 16-17 numbers. So even though we may have not guessed or we may have been made really conservative in the past, we're not on that same path anymore because we have a little bit more certainty in where we're headed. We know what's happening with Measure P. So we roll forward each year based on new projections. So we do our best to tell you what happened and then we start over and move forward from that. So the assumptions are assessed at the same time. So if we see that sales tax is gonna go up 6% a year, we would make that adjustment and that is one of the revenues being one of our largest that we do have a consultant that helps us look at trends in the various industries so that we get the best projection we can and we try not to be too conservative which we did do in the past. So the variables that were used last year that created this exact same presentation last year were the same ones that were used to create this year's long-range financial plan. You might hear that correctly. The assumptions are essentially the same. They have not, we haven't seen anything to tell us that they should be different. At the most, we're watching the sales tax to make sure that we're good on that one because we know there could potentially be an issue and we're just watching the industry to make sure that we're prepared if it happens. Thanks. Real quickly, sales tax is monthly or quarterly in terms of your analysis. So we receive our sales tax on a monthly basis but it's paid kind of weird.  Businesses pay their sales taxes primarily on a quarterly basis and they have 30 days to report. So the state doesn't even get it until 30 days after the quarter ends then by the time they remit it to us. So it's roughly quarterly so we can analyze trends. Yes. And we do monitor that one pretty closely. Ms. Collins. Do you think that not today clearly but sometime in the near future we could get a chart that had a graph on it that said, you know, this is what we projected and this is what the actuals were so that we can see the gap between the two which must exist. And I understand that. So you just want this in a chart? Yes, please. I would like it's easier for me to see what we're doing. It would also be helpful if we had, I don't know the technical term for this but when we're doing projections into the future if we had the goalposts for, we think we're this high or this low, you know, we're in this range for the deviation what you think is the accuracy of that projection. You know, often charts have, we're here but it could be this and it could be that. We sometimes refer to that as goalposts. Yeah, we don't really do that type of work. We could certainly look into creating some sort of a program like that. We try to give you the most likely scenario, not optimistic, pessimistic and one in the middle. We try to give you the one in the middle. Okay, I guess I'm just trying to say even for being the one in the middle, what's your confidence interval? You know. Well, I think we're trying to bring items forward that we feel confident that we can support, support and sustain for the long run. We can look, we can get in a conversation with the long-term finance committee about the problem that you've just, you've put forward council member. I'm always interested in making sure the council is educated about what the assumptions are going on behind that conversation but absolutely we'll look at that in more detail but what we bring forward is that this is where we feel comfortable and confident that you're gonna be making your goals so we're not in a conversation halfway through the year where I've been in other places. We've been there in other years. Where you're actually in the unenviable task of telling departments that they need to curtail their services or reduce services to meet a projection that's aggressive but I, again, we hear the concern and we'll get into a conversation with the long-term finance committee about how to bring that forward. Thank you. I think the other thing is that we're going through this projection and this part of the presentation won't change significantly year to year. We'll adjust to the commentary here but I also wanna make sure council's aware that you're gonna see significant changes in the future and how we do the budget presentation. It's gonna be much more about when we get to the department level there'll be some slides about the financial model but it'll be a lot of focus on performance. We're working through a process right now to and we'll bring those things forward in an active conversation through the year next year but the budget presentation will also have a heavy component performance metrics for each department and how we're doing on the core service thing because that is core service front because that is still the thing that I feel is not really informing the conversation. We're dealing with a bunch of numbers. We're not really talking about and a long list of projects in each department not really talking about how core service delivery. Right now there's nothing out there that tells you we address every pothole call within 72 hours and what does that mean? We've got to start to report that out on an annual basis. All right, so our next topic is the real property transfer tax. So this is an overview of the council policy for funding homelessness and affordable housing with our real property transfer tax. So I'm gonna, going into this, this is an example of a place where Debbie's gonna take you through the process without knowing where we're going long term in our financing. It is very, the assignment that we were wrestling with which was bringing more of the real property transfer tax into play is very difficult to figure out how to do. You're gonna see a presentation that shows what we do, what our current expenditures levels are, but without having physical certainty down the road, I'm struggling and will be open to suggestions about how to actually apply this as a regular policy change without asking the corresponding question because it's merged into the general fund, what service we're gonna curtail or change. I think this is one of these classic places without the certainty of knowing that measure P is in place. I am unsure how to approach this particular conundrum that is facing the community. So that being said, now we'll get into real property transfer tax. All right, so real property transfer tax is just a general tax on real estate transactions. It is actually authorized in state law, so every city in the state does receive $1.10 for every thousand dollars of value and that's split between the city and the county. So prior to 1990, that is the system that the city worked under. After 1990, there was a vote of the public that increased our real property transfer tax. It was, again, a general tax, raised that to $3.10 per thousand dollars of value at the home sold and $1.10 of that went to the county and $2 went to the city. So this is per thousand dollars of value at the home sold. In 2004, the council adopted a policy that established an annual transfer from the general fund to the housing trust and that transfer was based on this particular revenue source and the transfer was to be used for affordable housing production. In 2006, the council amended that policy, established a calculation for the transfer to the general fund and the annual transfer from the general fund to the housing trust is 20% of this revenue source and the funds according to the policy as amended in 2006 were to be used for homeless and affordable housing programs. So each year, the department estimates how much the revenue is going to be and we calculate the 20% and we put that in the budget as a 20% transfer to the housing trust and they have a various funds. So the housing and community services department then uses that money to help develop their budget request and they use that for homelessness and affordable housing programs as per council policy. Each October, the finance department will look at what was the actual revenue received and ensure that 20% went to that fund to make sure that they got the full amount that they were supposed to receive from the council policy. So in the 15, 16 budget, the adopted budget projected $490,000 was 20% of that revenue. And now I do know that that revenue is coming greater and greater than projected but we won't know for certain the final revenue number until October and there will be an additional transfer to their fund for these programs. But in 16, 17 taking what we've received to date and doing our projections, we project that the 20% transfer would be $735,000, almost $736,000. And 5% of RPTT funding is about $184,000. Why did you use 5%, I don't see it in previous slides. This was just to give you an idea of how much 5% is. So there had been talk about escalating, the council had been interested in escalating, potentially escalating the percentage transfer and this was just to give you a snapshot of what about 5% of that current estimate look like. Again, the challenge I have with a long-term commitment here is without long-term surety of where revenues are gonna be, it's very difficult to build even a step program which would go potentially next year to 25%, 30%, 35% without knowing where the long-term revenues are. That's always an option for council still. So we wanted to try to give you some idea of what a 5% increment increase could potentially look like. That's all that's for. I appreciate that. So just to sum up, if we go back to slide 31, when we basically almost quadrupled our take of the real property transfer tax, right, from 55 cents to $2 value to the city, no set policy per the next slide, slide 32, until we decided, the council then decided that there would be an annual transfer. It was basically discretionary prior to then. It was a general tax. It is a general tax that goes to the general fund, so council sets the policy. Okay, so then there was an annual transfer of no set number first, and then there was a set number of 20% just to be clear. I believe there was a baseline set. It was sort of, in the initial policy, it was something like anything over $3 million gets transferred, but it was- It was a sweep formula, so you had a fixed figure, as Debbie said, of about $3 million, so I believe we can get the exact number. And then anything that came in over that was swept into affordable housing. So it was, that's a peculiar approach. I think at least the 20% you get some idea of a regularity on this, that you're gonna look at this resource as providing some dividend, so I can only speculate that was the reason for the change is that a sweeping mechanism could, varies greatly year to year, is probably difficult to sort of depend upon, but there's a lot of unknowns there. No, I get that. Back to slide 34 then, 1.2 million roughly is 20%, so if we multiply that by five, we're looking at $6 million, and that's what various people are saying should, I mean, that's where they're starting their calculation of this real property tax. Again, I can only emphasize that it's a general task. No, no, no, I understand that. Council sets the policy. Of course, of course. But this is where the complaints, this is where the complaints are arising from. They stable, there's a voice out there that's, I'm not disputing that it's a general tax at all. I'm just saying that's where the basis for their argument comes from, thank you. So on this, Before you go to the next one, on the same point, I totally understand where you're coming from, Mr. McGlynn, but what's difficult for us, so if I were interested in incrementally increasing the real property transfer tax, $183,000 does not put any context to me, because I totally get where do we cut it? Well, if we were to tell you, yes, we wanna increase it, let's make it 25%. I'm guessing you would come back with us and here's how we would do it. So how would we have that conversation, even on a theoretical, what would going from 20% to 25%, how would we have that conversation? Well, so that's what we're looking for in this session. If there's a desire to go forward with that, we would then come back and say, this is our proposed. I do think you wanna look at the tire presentation right now, because I think in point of fact, council member, you can make an argument that we're already exceeding that rate with some of the one time and other initiatives that you've authorized, and we'll continue to authorize, I suspect going forward. So I think that that's the reason I would defer to get through the presentation, but absolutely this would be the time to say, we want to amend the policy, we wanna do the policy so that we could bring that back to you in a timely manner. So this next slide shows you the general fund contributions to homelessness and affordable housing programs that are not part of the RPTT transfer. So in 1516, the general fund paid $667,000 for these services, and in 1617, we're projecting to pay $787,000 for these services. And the next slide shows you the breakdown in total of how much we are providing to homelessness and housing services. Before you go to the next one, I noticed that this is on slide 35. Mobile bathroom and shower, the host trailer, there's no funding for 1617. I understand we purchased the shower, but there are still operating costs. Is that not being funded or proposed to be funded in 1617? We'll get clarity on that item for you. Each department's gonna have a budget presentation, but we'll address that. All right, thank you. Following up on a similar theme, it concerns me that the CHAP program budget is absent, and I don't know if that means it's coming from somewhere else. So again, there's still room even during the course of a fiscal year to address items. I believe that's under conversation by the subcommittee. We're not projecting that right now, but that doesn't mean we can't, we don't have some flexibility. I've always preached that we have flexibility, that nothing is frozen in time, and that you would be able to address some things, but I think that that's a conversation in the subcommittee. We've done a pilot program, we're gonna come back with that conversation. But again, if the majority of council wishes us to include it, we will try to figure out how to address those concerns as we move forward. But that's what these two sessions are about, to get your input and your concerns, so we come back with a complete budget for the hearings in June. Thank you. And could you also give us some more detail on the last item on this page, the staff support of $242,000? So then, just to show you in total how much the general fund has been providing to homelessness and affordable housing programs in 15, 16 is about $1.2 million. And we do know that $490,000 will increase. And in 16, 17, we're projecting about $1.5 million for those types of programs. So now our next part of this presentation is to talk about the department proposals. Can I stay on this one for just a minute here? Because it seems like we're dancing around this a little bit. We are more than doubling our PTT contribution to homeless and affordable housing with general fund money. If we want to increase our PTT contribution, it's gonna come out of the general fund somewhere. Are you suggesting that this would be a logical place to take it from? Well, I don't think we're suggesting that. I think what we're saying is that right now, because of the issues, the long-term issues that we're facing around the budget, we've been in a cycle of spending one-time funds when we have the resources to address some of these issues. This is merely illustrative of the fact that you are when you have an opportunity and you're spending one-time funds on exactly the issues that were covered by the real property transfer tax. It is not to say that you don't have the ability to reform or change the contribution distribution. This was merely meaning to be illustrative of the fact that you are actually spending more on these issues that has been reported through several outlets, assuming that you haven't been spending general fund. I think sometimes that gets lost in the conversation. I think my issue is, again, you can revise the percentage. It could go up 5%. We'd be happy to entertain those things. The challenge really becomes, what we were tasked to do is to figure out a long-term plan to raise the percentage. What I'm trying to tell council is it's very difficult to get into that conversation when I don't have a surety of where we're going long-term on the finances for the city. That's the conundrum in place is that without having that authorization down the road, projecting a 5%, 10%, 15%, 20% increase over time is a difficult task for us. This was merely to state, I think for the record it needed to be stated that you are in fact, as a council, investing heavily in these issues. And it actually, if you look at it at its base, it outstrips the actual council directive, minimum directive investment of 20%. And if we decided to increase the RPTT contribution, and we took that money from the general fund contributions, the one-time general fund contributions that we're budgeting for next year and put it into these same services, it would be calling it something different but we'd be doing the same thing, is that correct? I mean, again, I think it depends on, I think there is something to be said if you wanted to say we want to make sure the minimum investment is 25%, you know? I don't want to paint it that black and white. These become rules for the organization to live by moving forward, because again, in three years, or even as you see, even sooner than that when we look at the long-term financial plan, we've sent some holes in the budget and we'll need guideposts to make decisions and we'll rely on these directives to say, at minimum, you need to keep 25% transferring. So I think you can do both things concurrently. I don't think it changes this per se. I don't know if that's making any sense. There could still be a directive to us. You know, we want to make an inroad here, we want to change the formula, we want you to come back and raise it 5%. Even though you are investing more than this, this is the message we want to send that we want to continue to use a slightly different arithmetic here. So I don't know if that's being clear, but I'm trying to say that I believe you could still give us direction to make and, you know, change the baseline. It's your policy. You could say, I want to ensure that 25%, 30% goes to this activity. What I was having a hard time figuring out was this gradual increase when I don't know where ultimately we're going with some of our financials down the road. And that's the only differentiation I'm meeting. There's opportunity here. I don't want to shut down the opportunity. I was actually going to interrupt the Chief Financial Officer before we moved on. We're welcome to some input here, but we just wanted to show you that you are investing more. The baseline is 20%, a 5% increment equals about $180,000. But my issue is looking at the long-term finance, it was hard to say with any assurity what we could back without some counseling input on it was there a percentage, was you looking for a step 5% a year for the next couple of years? It's hard to forecast right now with the uncertainty of measure P, especially looming out there. Well, and we may have to make that change contingent on future revenues as well. Just to be clear, the additional general fund contributions listed on slide 36, these are one-time money. Yes. Thank you. Ms. Carlstrom. I didn't even get my hand up, you saw it coming. Mr. McMillan, did I just hear you say 5% increase in the transfer is roughly $180,000? Dad, as we forecast, remember, this is a variable based on what we think is gonna happen, but as we're projecting for next year, that would be about $180,000, correct? Great, I just wanted to double check that because as we, obviously, this is one of the areas I am very interested in seeing where we can improve and increase our commitment. I also think it's always useful to see those numbers in context. So when we talk about, okay, a 5% increase is about $180,000, what will we actually get with that? You know, is that, does that build a unit? So, okay, so again, the policy right now is to split this between, and this is why you might wanna have the convert, when we get to housing and community services, there may be follow-up that you wanna have on RPTT after we get into some of those specific conversations that have already been alluded to, but we'll take that and sort of try to figure out what, again, we'll remind you what a unit costs when we get to that part of the presentation and try to give you some concept. But what I felt was not being communicated was this council's commitment to do additional work in these areas. That was being lost. I wanna emphasize that the reason you're seeing this is there was some of the noise out there was implying that all you're doing is the 20% contribution. And what I would say is over the last couple years, last year and in consideration for this year is more work in this area than was actually being reported. More general fund resource, which comes from part of our general fund package, comes from real property transfer tax. And I felt you needed to see that because that is actually, it's a lot higher percentage even though it's one-time funds and I think that that can get lost, your commitment as a group to address these things needed to be recognized in this process. Thank you, Mr. McClendon. I absolutely appreciate that. This is, again, one part of our holistic approach and I cannot thank you enough for specifically calling that out. And I think as we move through this budget process, that's gonna need to be a continual drumbeat. The commitment from this council and the staff can get lost in the broader conversation. So let's just continue to tie that to, this is one piece of what we're dedicating, what's the overall impact that we are putting back into the community. So, thanks. Mr. Vice Mayor. Thank you, Mayor. Just my perspective on this, because I think the homeless programs that we're doing, I know we've done the significant commitment in the affordable housing, I don't think that's gonna go away. So actually I think it would be easier and to actually continue our commitment towards this is to increase that 20% to, let's say 25%. Because again, I don't think the dollar figure would change, but the expected funding source will stay consistent that might actually help the homeless and actually affordable housing and community events department actually manage that budget. This is a firm commitment, not just trying to find the rest of the funding absent that 20%. In other words, I think it's a strong statement to say that, yeah, let's increase that because those two priorities, I don't think are going away anytime soon. So I'd really encourage us to increase that 20%. You know, I'd like to comment, I think that this conversation is being generated by some myths about that particular funding source. And I was around when we were talking about increasing it and even then the conversation was that it was a dedicated amount coming from a certain source and that we were going to decrease, we're gonna change the formula. Had we not had some of this misinformation about this particular source and its history and it's actually that sounded like we were robbing the source or robbing from this pocket of money when indeed it was general fund dollars all along, that the conversation would be different. We wouldn't be so tied to this source of funds. We would be talking about what we're actually spending, what we need to spend, what we could spend, what we can't spend. It would go toward that conversation as opposed to being, we keep tying it over to this, the RPTT, which is erroneous. So it is a source of funds, but like the vice mayor said, and all the council members here, we have a commitment to this concept and that we need to talk more about that than where the funds are coming from specifically that it is general fund money and we're spending more on these services than we ever have before. Like council member Carlstrom said, I think we need to continue pointing that out. If I may, Mr. Mayor, I certainly agree with you. I also agree with the vice mayor, my colleagues. I think though that when something is a priority for a council, having a predictable dedicated fund is essential to providing a long-term effective services and by continually funding this with the leftovers, instead of putting it at the front where we funded because it's a priority, that's a problem. And I think that the department and the service providers need a reliable predictable source. If this is it fine, if we need to find it somewhere else, that's good, but it concerns me that we're using one-time monies which people can't plan on. So I would be in favor of your marking this. I would go further than 25%. I would say, what's our priority commitment to this subject? I think we need to have that conversation. I appreciate if it comes out of the general fund without another reliable funding source, we have a problem. But if this is really a priority, we should be funding it up front and not using the leftovers. So that's my concern here. So if this is the source, great, go to 40. If it's not, tell me where the reliable source will be. Well, again, going into next year, as it's scheduled right now, we would be meeting that goal. I think all your right to raise this issue, what I'm looking for is some direction on do you want to amend and we can bring back the policy? Do you want to amend the policy that is in place to increase the percentage? It won't, right? And again, that's up for conversation. I understand all of that. We can bring back the policy for an amendment conversation. It gets to the crux of what the council member was saying, that there'd be a reason for maybe making that commitment in those terms. Then when we come back to budget next year, we would know what that directive was. We would meet the directive or exceed the directive based upon council's contribution, direction. But right now I wanted to make it clear again that we are exceeding the current formula. If you want to open a conversation about formula change, I'm looking for council direction so that we can move forward to change the formula. I'd like to make that motion if we... You wouldn't make a motion. It's a study session, we can't make a motion. I think you would. I just know I... I just need some... We don't know where we're going on this. I was assigned a task about stepping it up.  You know, it becomes, again, changing the percentage is a slightly different conversation, especially as we're looking at uncertainty in future years. So, you know, I'm just looking... And then we can talk about that percentage when we come back. But if there's a... It would be nice to hear individually if the council members would like us to do that. I just wanted to make sure it was clear that you are currently investing more, substantially more than the 20% that is currently the council policy. And I think that the need to mention that on a regular basis is important. Where my discomfort comes in dedicating or increasing the amount when we are already by being very proactive and intentional about that. That if we start to increase... If we dedicate the percentage inside the policy and then without having addressed the lack of certainly on measure P, we could put ourselves in a position of having to compromise other budgets in the future that would be equally painful. So I would prefer to have that conversation about a specific amount once we have a little more certainty into the future. But that's just one council member's opinion. I appreciate your opinion. And I think that if this is truly a priority, it needs to be carved out of the budget now. And if that means that we have to do some give and take in other departments where there's not the priority or if we have to go to the public and say, look, we have to have funding for affordable housing and homelessness, then those are steps we'll have to take. But I don't think you put your... I feel like we're holding the bake sale for our priority instead of making... In my home, when I have a priority, I budget it. I don't wait and see if I have extra money at the end of the month for it. If it's a priority, you budget it right at the top. So I like to budget it at the top. I appreciate that opinion as well. Let's move on. Did you need it now? Well, I'm kind of worried we're... I'm kind of need it. I need a general sense of where we're going since we've opened the topic. I'm trying to get a sense of what I need to do. Mr. McLean, I am comfortable setting a higher percentage. I don't know that I want to limit us to 25% though, but if that's where you need to come back and bring us data, I'm a yes on that. And you're talking about the RPTT that's specifically on this funding mechanism. Mr. Weisaki. I would agree with the comments if it's a priority, it should be treated as some. I would also look back to how was this change, this increase in the tax promoted to the public back in 1990, was there specific language as to where the money was going to be spent? Because that's a problem with a lot of the public's perspective. It's specifically the mayor at the time says he was uncomfortable with tying it to specifically lead to these things because it was a general fund. That is a general fund is a general tax. So I will say once again, there's going to be a variety of opinions on that. What I only thing that I can say is there was conversation at the time, there continues to be conversation today, but it is the council's direction that dictates it's a council policy, it's your decision, and it will be the decision of future councils about whether they want to revisit this particular policy or not. There is no, there's been no, it's a general tax. That means it's a general fund item. There is no subterfuge in that, et cetera, and so forth. I don't know, I'm at a loss, council member, to figure out what happened in 1999. I have heard a lot of opinions. I'm sure we can see the ballot arguments though. Well, I would, just based on recent measures and where the money's gone, I would like to see that. We can supply you the ballot language. Thank you. Mr. Corsi. Yeah, I'd like to see the ballot language too. And given that our long-range financial forecast goes into the red in a couple of years, I am uncomfortable with changing the formula right at this point. I think that we have made our priorities clear and we're living up to our priorities with the money that we're putting into this now is, as I said before, more than twice the 20% policy that we have for the RPTT. We're increasing that budget by nearly $400,000 next year with one-time funds. We recognize the problem. We're addressing the problem. Changing the policy at this point, I think, is premature until we have a better idea of where we're going with measure B. Ms. Combs. I thought you had it. I think I've already nodded yes. I was hoping that Mr. Wisehacky would clarify his yes or no because I didn't catch it. I'll clarify it when I get the information that I've requested. So I have some clarification for you, Council Member. In the time that this tax measure was considered, it did not need to go to the voters. There was no ballot language. And so where did the then mayor's quote come from? From the council meeting, which we've supplied you before. And again, I think there is a lot of concern about, and I suspect there was a lot of different interpretations about what was going on at the time. This is one of the issues that we wrestle with. The only thing that we can clearly articulate is that the council made some policy decisions related to a flat and then a percentage of the RPTT. And now you're wrestling with, do you want to alter that percentage, keep it the same? That's what I'm looking for direction. Mr. Vice Mayor. I think I've already, I'm supportive of this. And I guess for me, it's really almost irrelevant what happened in 1990. We can argue what was said, what wasn't said. Again, my position is our homeless efforts and affordable housing are our priorities now. And I think in order for us to walk the talk, having this expected revenue source, I think is important and something that we had to move forward on, at least to have the conversation to find out what those consequences are if we bump it 25 through whatever it is. And again, I think the challenge a little bit is, is I can pull $200,000 out of any budget. I think the, I'll be honest, the proof will be in the putting next fiscal year when we're facing the realities of the next fiscal when we're trying to make the gap up. That's the only, that's where I'm struggling is that I'm asked to forecast where to take 200,000. I think this is a question of what percentage makes you all comfortable. And then we will deal with the consequences of that percentage in frankly in the future years, unless you tell me 100% where then I do have to make active cuts. I'm not hearing 100% right now, but I'm hearing some desire at this point to look at this. We could bring back proposals. That's why we gave you the 200,000 increment. We'll look at the cost per unit conversation and show you what that looks like. But this is where I struggle is quite honestly, this will dictate next year, but what exactly is gonna be the impact? It's hard to forecast at this point. And I can totally respect that, but I'm also aware of other funding sources in this arena from the regional perspective, the emergency solution grants, we're taking a significant hit here. And in my opinion, we've made so much progress here. And if we don't identify the funding source now where it goes in the bucket of other priorities, that concerns me. And so that's why, again, I think, well, I've already said what I'm comfortable with. And I feel comfortable now knowing what the assignment is. Mr. Corsi. I just wanna make it clear that I do support increasing the percentage of the RPTT at some point. And I've had conversations with Mr. McGlynn about stepping it up over time in increments, but this is not the time with the uncertainty we're facing. We've got, we're looking at a $10 million hole in our budget in a couple of years. And until we have some more certainty whether that's going to happen or not going to happen, I'm comfortable with the money that we're spending now. Thank you. And I think where I'm coming from is that these funds are also subject to increase and decrease over a year, over a year. And one could argue in the future that the future councils can say, look, this is the money we're supposed to be spending on this. And that's the amount, and there we are. And the rest of it goes, it gets budgeted the way it would be budgeted. I'm more comfortable, actually, with the commitment of the council and what they are, what they have committed to currently and in the future. I'm less concerned about a specific amount. I would be okay with going with an extra 5%, but I, because it's clear how much that is, but we're already doing that. So codifying it is not as important to me as the intention and the dedication of the council in this cause. Mr. Wayslowski. I'll clarify as well. I do feel that this is a council priority and it is a need for us, but I am uncomfortable at this time for many of the reasons stated, but also I don't know where it's coming out of. This money's not gonna be grabbed from some funds. Some other program's gonna be hit. I am also very concerned with how the public was informed of the decision since it wasn't an election, as to why we are arriving at doubling our revenues. I do know since being on this council, Measure P, we told the public that we weren't gonna charge for parking at Howarth Park, for example.  So we have some credibility issues, government-wide, not just this body, but we have to make sure that we're being straight with the public. So I would like to know what else was said in addition to the mayor at the time the revenue was proposed, or was it just, we can double our money, so we're gonna do it. Not sure we're gonna have those records. I think that we've tried to identify what the original intention was, but my guess is that there could have been that conversation around tying council's hands, and a policy, they said a number, and that the mayor at the time was uncomfortable tying the hands of future councils, and it was a general tax, so. I don't know, it's kind of hard to necessarily to identify all the nuances of council conversation from 20 years ago, or more. That's right, there you go, good point. So I'm not sure, Mr. McGlynn, do you, where do you find yourself as far as direction at this point? It seems decidedly split. Maybe we need a motion. No, I can't do that. I can't have a motion. We need one, doesn't mean we can do it. So my suggestion is you just bring back the council policy for amendment, the council can decide at that point with the additional information, whether you wish to increase it to 25 or some other percent or leave it as is. That's what we will do. Thank you both. When you bring it back, can you give us flexibility in the notice? Yeah. Thank you. That's absolutely. And will it be placed in context with the overall budget? That's why we needed to, I mean, again, that's the dollar amount that I'm trying to give you. It's hard to forecast what would be next year the exact impact because there are a lot of variables in play. There are variables about where we are, where we are in terms of potential revenue measures out there. It's hard for me to speculate on that dollar amount. I mean, if you were giving me an assignment to come back and capture the full cost of the real property transfer tax, then we would be looking at a very different, I would be looking at budget the current year as I just wanted to demonstrate that we're committed to already in the budget process, a figure that puts you well over the 20% marker. So we're feeling confident that as long as it wasn't gonna, the direction wasn't gonna be, give me 50% of the real property transfer tax in year one, we didn't really have an issue in the current year. I think it's always gonna be an issue depending on what's going on, where we are in subsequent years. And so for me, there's two conversations. There's the conversation, did you wanna take a stab, which we will bring back for a formal conversation in vote with changing that percentage? We'll put it into the context of what's already forecast in the budget so that you're all comfortable with that, and then you can make a decision about how you wanna do that. Where if you change it, where the impact is gonna be, I suspect, is in upcoming fiscal years, not in the current fiscal year. Well, I appreciate that, but I'd also like to view it in the context of my earlier request for authorized full-time employees versus actual full-time employees, because there might be some cushion that there might be a trend from previous years in the departments. I'm just wondering how that fits in the context here. Well, again, you know, understood, understood. Okay. Okay, so our next, we're going to get into the various departments. This is the part where we split the presentation into two days. So I do wanna provide you before we get into the individual department proposals a couple reminders. First of all, the benefits cost, you will see benefits increasing, and that is primarily driven by CalPERS and health insurance. There are, you know, always different things that change your benefits, but those are the primary drivers of cost here. In addition, there was a reorganization, so some departments you'll see comparisons with prior years, other departments you won't, because they didn't exist in prior years. And so just keep that in mind that you will see some big changes in their current year budgets because things have been reorganized. Yeah, before we move into the individual budgets, we'll take a five minute specifically, very clearly, five minute recess. Thank you. And to begin again. All right. Let's not begin again. Let's continue. So just as we go into the department proposals, just a couple reminders. I've told you about the benefits being driven by PERS and health care and about the reorg. In addition, I do want to remind you that IT costs, while you will see an IT budget, you will also see IT costs in all the budget. So you see IT budget twice, essentially, because we do spread across all departments. And one other thing, in the past year, we did take on a project within the finance department to look at everybody's budget and how they were budgeting for their, what was called capital projects and looking at if it was truly a general fund project or if it was an ongoing operating expense. So you may see some bump up in expenditures within the line items for that change in how we recognize what the departments are doing with some of those resources. Can I ask one question based upon your statement? What other departments such as IT are allocated citywide and can we see the formulas behind such allocation? So IT is, actually, we have cost allocation plans for all funds this year. We're in the final phases of doing that project. IT has a cost allocation plan. It is put together by the, and we have one for the administrative departments. We have expanded that program so that we actually have some for all departments and all funds. So we know when we trade services across funds, how we can charge for that and make sure that we're keeping those funds whole. The cost allocation plan is about this thick. So I'm not sure you want to look at the whole document. We do have some summary tables that we can show you how it's allocated, but it's all allocated based on particular items. For example, HR is allocated based on FTEs throughout the city because that's how their services are derived. And each department that they set, how their services are spread amongst the departments based on the services they provide citywide. So it is. That would be a good start. That's summary. If there's other questions, we can go beyond that. Okay. So we can provide you the overall, how the departments spread their costs, what those form, it's not a formula. It's just percentages and stuff, but we can give you that. What's the basis of reasoning? So what we are talking about today will be all the administrative departments. And then we'll talk about information technology, planning and economic development and recreation and parks. The study session on May 17th we'll talk about fire department, police department, housing and community services, transportation and public works, Santa Rosa water and our overall capital improvement program. So the first budget item that we will talk about today is the city council budget. The city council budget is essentially, I guess we could call them programs, three programs you deal with administration, which is the city council, the city council is the legislative and policy making body for the city. So there is a large legislative or administrative component that you all provide for us. In addition, the council does elections and community programs. The administration's about 46% of the program. You'll see elections this year is a much larger percentage of the budget because we actually do have an election coming up that the council's budget pays for. So overall we look at how the budget compares to last year and there are some highlights that we'd like to point out. So when you look at the non-council member salaries, if you recall over the last year we did add police services as security for council meetings. So this is really where we are charging. You'll see the non-council member salaries and benefits, those are to capture primarily that staff that provides the security for our council meetings. The other non-council member salaries would be the in-kind services that we provide for the community promotions grants. So that gets captured also within the budget here. Professional services, like I said, that's gone up significantly because we do have an election and we need to cover that. So we have a council election and we've also included a budget for possibly two ballot measures. There may be one coming from the community, there may be one that the council chooses to put on when we get some results and see what we're looking at. The other thing is to highlight really is your other miscellaneous and that again is primarily driven by election costs. There's about $35,000 in there for printing and the stuff we need to do for elections. And then there's various dues and conferences and travel that's included in that line item. Mr. Mayor. Sure, let's go. If I may, I want to thank you for the assistance with scheduling that is now occurring. Mr. City Manager, it is really helpful to have the office staff be as responsive and helpful with regard to scheduling as they have been. It has made a major difference to me. I assume it's helpful to the other council members as well. I would like to point out that members of the Board of Supervisors have two and a half staff members that they select to assist them. And we do not have any staff members that we direct. And they serve fewer people if you figure that a Supervisorial District is about 60,000 and we at large serve about 170,000. At some point, and I appreciate that it's a very delicate conversation, we need to be able to have at least a half-time person that we select to work with us as our aid. And while I don't expect it to come out of this year's budget, I would like for us to have a council conversation about this for a future budget. And again, I want to be, I don't think I realized how helpful it would be to have such an excellent staff member as I now have working with me on scheduling. And while I have wondered about this, it has really brought it to the fore in my mind that in addition to scheduling help, we simply need some staffing help that we select in the way that the Board of Supervisors does. Thank you. Is this a motion for a future agenda item? Not here. No, not until, when you get to Mayor's and council members reports, you can handle it then. Seem the right place in the budget conversation to give a heads up that not this year, but I think that we need to be thinking about future council members. And I think you may have had an item you wanted to discuss at this point. Well, when they, you know, when we get, after the preface, are you ready for it?  Are you more comment? What I wanted to mention that does not show up in this, in the budget items this year is the sesquicentennial. And although perhaps easier to put on than to say the 150th anniversary of the city of Santa Rosa is coming up in 2018, there has been an informal group, myself included, meeting on a regular basis, discussing possibilities, bringing members of the public in, ascertaining various non-profits and other groups' interests in participating. There is a high level of participation expected. What I needed to get was a sense of the council's appetite for an official budget item for the sesquicentennial. I know we have, there are so many pressures right now on our budgets. This is a, this only happens once. These kinds of celebrations that the last one was almost 50 years ago. And there probably won't be another one for another 50 years. So, you know, we have a general sense of, that's probably a good thing. And I was at the last one. I don't think, you probably weren't born yet, were you at the last one? You probably get that a lot though. So, I'm needing to get a sense of the council's financial commitment to this in two years. The, although there is a category for community promotions and we anticipate looking for some funds, those have to be spent in the year in which they are requested, which will be next year. There is a, you know, the council could, after some conversation, decide to dedicate all the funds for what we think is a reasonable budget, both in kind and cash. We're not, we've had to do the best budget we could come up with. And right now it's a little bit, not quite as firm as I would like, but we were looking at between $150 and $175,000 of both cash and in kind to be expended in the next couple of years. Part of the problem, of course, is we have no staff. We have no staff member to try to direct this effort and it takes, given it's a community-wide celebration involving many, many people, trying to do many, many things and with no one person to call, it is a, and it is the city's celebration. So, I'm looking for some direction. I'm looking to be able to, when speaking to other, to non-profits that are looking to become involved and other organizations, the JC, the library, various libraries, actually, the county, and it just, it's growing and growing and growing and one of their questions is what is, who do we contact if we need information? And to date it's been Suzanne Shepard and she has enough on her plate and so we are looking to, I am asking the council for a conversation about its financial commitment to this effort that will be happening in two years. So, I'd like to hear some thoughts. Ms. Collins, do you have? I'm just nodding. I agree, we need to be planning ahead for the sesquicentennial and we need to budget it and we need to budget it this year and next. Thank you, Mr. Vice Mayor. Yeah, I would also agree and I think it's an opportunity for some public-private partnership knowing that the junior colleges having their 100-year anniversary and I think there's some leverage their collaboration there that we may be able to mitigate some of the costs and I know, I'm familiar with some of their fundraising efforts so I think it should be a public-private partnership but I think we do need to be involved. Thank you and they are at the table. Mr. Corsi, give us some clarification. Are you talking about a future agenda item where we'll be able to look at the budget and take a look at what we're actually buying with this? Well, that's what I would probably look to staff to answer a question of how we move forward with a completely, this is virtually not unexpected to me or to others, certain others but clearly to this body and to staff an unexpected budget item and it is so I'm not sure exactly how much direction we can give and the council has control over its budget but it is, I didn't want to, would it be good to have one figure and everyone says yes, let's go for it right now and be done with it in this year? Yes, would it be okay if there was a commitment to splitting it in half and splitting part between 15, 16 or 16, 17 and 17, 18? I would be okay with that as well but I need to be able to let organizations and individuals know the city's financial commitment to this so that they know how to plan and how those partnerships will work. I agree that we need to be part of this and we need to budget the funds for it but we also need to know where those funds are kind of coming from, it's a one-time expenditure. I imagine it's coming out of one-time funds where those funds are not gonna be instead, so. Exactly. That kind of information I'm looking forward to talking about. Okay, so maybe I could make that request to staff if we were to, well maybe it would be good to ascertain the council's, take their temperature as to whether they want to do this in one shot or split it between two years, two budget cycles. Can I just ask a clarifying question and last year we appropriated $14,811 towards this. What did that go to? So we are in the process of spending about half that right now. We are looking, it is some promotional materials, a logo for instance that not only we would be using but other community members and organizations could use given certain criteria. So we knew we needed to have some branding, we needed to start with some branding so we could start to appear and to be more professional and yes, this is really going to happen. So we have yet to spend it all but we're about ready to pull the trigger on spending a fair amount of those funds in promotional materials. And the rest of it, for instance, I'll just give you a basic need. Excuse me, we had an organization come to us, actually it's the Historical Society of Santa Rosa and they said we have some people that have come to us, that's the society and said we have a great program that we think would work very well, it's not developed yet, but it would require a site and we charge for our sites and so this would be kind of in a sense in kind but it would be a cut if Finley is used for a particular event and we don't charge them for that, that would be part, if we chose to do that, that would be part of that money. It's hard for me to determine what's cash and what's in kind, which departments would be hit the most and if it's our facilities, there would probably be recreation and parks. So I don't mean to be unclear but it's really hard to know on this day how exactly those funds would be used. So if I may request something, I think I'm a little concerned just in terms of this is so open-ended, I don't know what the request is so I don't know how in the next six weeks to actually manage the request. I think Mr. Mayor we can sit down and have a conversation about this because it does have organizational impacts. Again, I'm not sure what the plan is, what the goal is, what we're trying to celebrate. I think it would be better to bring back a celebration idea to the council, have council vet that celebration idea and then we can strategize about where resources might reside for that instead of fixing a plan to a specific number that may or may not actually be an accurate number because as you rightly noted, there are potential costs and operational needs that again may need to be really thought out in terms of just honestly going through the issues around the Amgen tour is right now fresh in my mind about cost and cost allocation and expectations and so what I would appeal to the council is we want to as a city obviously celebrate this as a quintennial but I think if we could sit and talk about this in a way that is again in the utmost emphasis of flexibility to figure out what program we're shooting for so that we could bring that program back for our conversation with council about it. I just, it's so open ended, I don't even know how in the next four to six weeks to fit that in with everything else we're gonna be trying to do to get to a number. I think we'd be better off hearing that the council, if this is something council wants us to pursue in general terms and then we can start to work on the more specific parts of the conversation. I am concerned about adding a staff member. I'll be honest about that because I'm not sure operationally where we are in a context especially when we're having conversations about vacancy rates and a lot of other things. I am somewhat concerned there might be, this is a space where sometimes you contract with somebody to help you get through that part of the process so I'll be honest, I'd like to have those conversations if there's a general council will, which I suspect there will be, to be involved in the planning process around this. That's just my two cents in the conversation. I appreciate that. Thank you, Mr. Waisaki. Thank you, Mr. Mayor and thank you for that clarification. I would just, I'm in general agreement, perhaps we should be setting something aside but I don't wanna buy a pig in a poke if you will. As this is a promotion, perhaps our economic development departments, some of our folks that have been putting together our promotion, they should be involved with this. Let me just reiterate, you have a long, tall order for your economic development team of two to accomplish in terms of housing and economic development tasks and so I need to really understand better that before I start farming out there promotional, there is a role for them to play. I'm just reluctant to say that this is, they own this particular thing because I think you want to deliver on the housing and you wanna develop and deliver on jobs in the community and I've got a team of two right now and so I really need some time to assess it, Mr. Waisaki. It's not to say no, it's to say, I think there's a way for us to address it and we'll be involved in it and we wanna be involved in it. It's merely a suggestion of a resource we can draw on. I'll leave you to sleep with that. And I appreciate that and it was not our intention to bring to higher city staff. The contract concept has been floated before but I mainly, I didn't know when and I thought, well, during the budget time would be a good time at least to put this up the flagpole and see what happens and I appreciate the council's willingness to consider it and that we will bring back more information and something that's more substantive that you can consider and ask questions about and we'll do our best to give us full report on the recommendations that we've received to date. So thank you very much. All right, so just to let you know, again, the council is funded 100% by the general fund. Some of the highlights of what's in the council's budget, again, the primary, the increase of $465,000 is primarily due to the election cost in November of 2016 and that is for two possible ballot measures, the city council election plus print services and in addition, there's some slight increases to salaries and benefits for non-council members for having police officer attending your meetings as to help provide security. Some of the accomplishments and, you know, the council gets a lot of kudos for what's been accomplished over the last year. Obviously, you adopted the 15-16 budget and we thank you for that and you finalized the council goals and priorities and reminding you again of the tier one priorities are reducing homelessness through the comprehensive strategy, doing the housing strategy and all that. So again, I'm not gonna read them all for the third time. What we would like to also provide, you know, that there were a lot of, the council provided a lot of resources and commitments of funding for programs, such a, well, I don't even need to go through them, but there were a lot of things that we did over the past year to target some strategic investments throughout the community and making sure that we're dealing with some of our infrastructure needs. We did settle a lawsuit that we had with the Department of Finance, which, and along with the Hyatt sale, provided some proceeds to the general fund. We established, you know, your new homeless service program with host and created several pilot programs with that to see what's working and how we can better deal with homelessness, created a rent stabilization and medical marijuana committees, subcommittees, made a lot of progress with our Rosalind annexation and, you know, also continued the partnership with the violence prevention program. We continue to implement the recommendations of the open government task force and one of the big pieces of that was hiring our community engagement director. And again, we've initiated the housing series to help develop the housing action plan. So if there's any questions on this? Ms. Loftner, just for clarification, oftentimes when we talk about the, inside the marijuana arena, we talk about opportunities in the medical marijuana industry, et cetera, but the preparing for the impacts of legalized marijuana. Can I assume that we are preparing for the impacts of the changes of the medical marijuana arena as well? Because it's oftentimes looked at as an opportunity there, but an impact on the other side and I see impacts on both sides. So I assume that we're talking about impacts, both current impacts and some of the unknowns. And then of course impacts of potential legalization. That is correct and that's consistent with one of the tier one priorities. Excellent, thank you very much. Ms. Carlstrom. Oh, I was only going to offer that if memory serves, I think staff crafted that statement because there was unanimity amongst us as far as implementing the medical marijuana rubric, but some hesitation with respect to adult recreational use, which would be on the ballot. So I think that was the intent of prepare for because I think four of us were like, yeah, go for it with the legalization and there was some internal angst. I agree. I just think that I think that it's important as we talk about the impacts that we talk about the impacts. And as we all know sitting here, there are impacts currently. And so I just, it's not all roses. Thank you. Mr. Mary, can I just ask a question with respect to that? As we look at sales tax projections, our medical marijuana sales tax revenues forecasted and included in some of our numbers. At this juncture, no, we're working with some consultants to start to look at that, that obviously can continue to be potentially an option for the council to consider its own initiative in the future. You might only have one bite at that apple though, depending on when legalization comes, if it comes. But we're working with consultants to build some modeling about that. But it's not really, we're building this program. It's not really, we don't really have ability to project the way it could be. But so there is learning going on on that front. Absolutely. And I very much appreciate that. I know that the subcommittee has really appreciated the staff's work on digging and drilling down into that issue. Just for the council's purposes, I think what Mr. McGlynn is referencing is that a number of communities across the state have elected to consider additional sales taxes on medical marijuana sales. There's a ballot initiative at least coming from Oakland and maybe Berkeley too. So several communities and that maybe something that we think about as we enter into election season, given some of the dire circumstances we may or may not face, it wouldn't be a heavy lift, I don't think, to put a tax on the ballot. I haven't fleshed this out, but I just wanted to throw that out there and put it in people's thoughts. Well, there's also a Senator McGuire sponsoring a bill right now that has a 15% cap on it, I believe. But there's some issues about, we may have some follow-up conversations around this topic. There might be a reason that you might consider getting in queue, because if you have something on your slate, you potentially have a voice at the table when statewide conversations go on. And there is statewide conversation going on right now with likely some numbers attached to it in terms of attacks. So making my sesquicentennial ask even easier every minute. We'll see. Am I being selfish? Thank you, go ahead, Ms. L'Hochter. All right, the next budget we talk about is the community promotions budget. And we have a list of those community, the requests that got and how much got funded from each request. So if there's questions on this, we'd be happy to answer that. I do know that our mayor does sit on the selection committee for the community promotions. And so just wanna let you know what got selected and what is how it got funded. And just as per usual, it is always a difficult task to either to cut some of the budgets for various reasons or to say no to certain requests. I might point out, and this has to do with, maybe this would be a future discussion perhaps, but the funding has been 125 for almost 25 years now. And it seems maybe it would be time, and once things settle down a little bit in the next year or so to have a conversation about increasing that. We did decrease it for during the recession, but then brought it back up to what was even then an old number. So it's something that we should consider, I think in the future to kind of modernize that amount, but we have lots of needs on our plate. So I'm not looking to do that today. The next budget we talk about is the city manager's budget. So city manager, last year you looked at the city manager and it included the community engagement director as a separate division with it just housed in the city manager's office was always a separate department this year. We have separated it out as a separate department. So you will see the city manager's office no longer contains the violence prevention partnership. It is administration and the city clerk's office. The city manager's office provides oversight for all the city departments and works very closely with the governing body. And the city clerk is responsible for administering all the city's legislative process, the elections and records management programs. The general administration is the bulk of this department. It's close to 95%. You will see a large reduction in a lot of their categories because there was a reduction of, so seven FTEs went over to the office of community engagement. However, there is one added FTE, so net the city manager's office decreased by six positions. The added position is for the police auditor position that has been added to that department. For the most part, there aren't a lot of big changes. What you will see is you will see the professional services while it has decreased dramatically. A lot of that is because of the violence prevention partnership. But in addition to that, there was some recruiting services, some funding for that, that had been housed in the city manager's office. We have moved that back to our HR department where recruitment services should be centralized. So the funding is now back in the HR department for some of those executive level recruitments that were being managed by city manager's office in the past. In addition to that, there's in the overall CIP O&M projects section, you see that there is a budget of $35,000. This is for the city clerk's record preservation program. So they're looking at trying to preserve some of our more historical records and making sure that we are properly storing those. And this is the tail end of a project that we've been working with to deal with our document retention and record preservation. So the city manager's office is all funded by the general fund. As you can see in the past, they were funded, they had measure O funding, but that was for the violence prevention partnership, which has moved to the office of community engagement. So I've kind of told you all the different highlights of what's been changed in their budget. So I won't go over that again. We have been working on, there was some additional funding that had been provided. So at mid-year, we provided some additional funding for polling work. That process is still underway. We will be coming back to the council with a study session, not sure exactly when yet. Likely that will be after the budget hearings so that we can tell you what the results of the polling is. In addition to that, there was $75,000 provided to work on the rent stabilization program that had been directed by council. And those recommendations did come forward to council on May 3rd. There's been a lot accomplished by this department in the last year. Of course, there've been the recommendations for the budget. That is a huge project for all of us to work on. It is the city manager's budget. So we work very closely to make sure that we get a comprehensive budget that covers as many needs as possible in front of you. In addition, we've developed some more reporting stuff. We're working on the sunshine ordinance that is still a work in progress managed and distributed all the meetings for the council. That's a big project. The city clerk does an amazing job to make sure that the public is well informed of everything going on within the city and knows when the meetings are and what's gonna be on those agendas and making sure we all get those through and on the agenda for you. So kudos to that department for keeping us all on track. The record preservation program that we talked about is a big deal. We do have some records from the 1800s and we wanna make sure those records are preserved and maintained properly and not in improper storage as they get older, they need a little bit more care. So, and in addition to that, we responded to over 170 requests for public records. Just to point a clarification, I'm not sure why we have the, I'm gonna ask staff to look at this, why we have the police auditor as an FTE because the police auditor services are contracted. So I just wanna make sure that the council is aware of that. And in fact, I also wanna take the time to recognize that we're going to lose a long-term employee out of the city manager's office very, very soon. Mr. Chuck Rogalia, who's been working in the city manager's office for over a year now. And due to budget considerations, we will not currently be replacing that position. So in point of fact, the number of positions for administration is going down by one and one substantial contributor to the city's visioning process and has made significant progress on a lot of the council initiatives over the last year. So now you get to listen to somebody else for a while. So we're gonna talk a little bit about the office of community engagement and Jaime Peña Herrera is here. Mayor, city council members, good afternoon. I'm pleased to introduce to you the newly created office of community engagement. Right now we have allocated seven FTEs to the department, including myself. One of them is, sorry. One FTE is allocated to the community engagement aspect of the department. The other five are allocated to the Valence Prevention Partnership. One of them is funded through the CalGrip grant that we have. Just a quick update on the community engagement coordinator with second round of interviews for that. Likewise, for the Valence Prevention Partnership, we have a community outreach coordinator second round of interviews and for the manager for the partnership, the closing of that recruitment ends at the end of this week. Just a quick update on that. So in our role, the office of community engagement, if I had to summarize, we are a bridge between the community and the city. And to do that, we utilize the key tenets of open government, transparency, participation, collaboration. And to do that, we have a series of tools, including the cap and the members that are part of the group. As you well know, we are lucky to have a highly committed group of people that are excited to work on different priorities with us. And at the same time in our department, the partnership is in charge of administering and managing the partnership strategic plan as well as the choice grant program. So our budget, because it's so new, is a little hard to compare, especially on the community engagement aspect of things, but consistent with our financial, our finance department's direction of increasing at 3% on our annual budget. 70% of our budget is allocated to the violence prevention partnership, 20% to community engagement and the rest to the, it's coming as a general funding mechanism to complement the choice grant program. So one of the highlights there, it's related to the professional services, about $605,000 are allocated to the grants and the rest of that it's allocated to the strategic planning process, a community awareness campaign that we're planning. And there's another item, the scorecard that we're working on and I'll tell you a little more about that in the next slide or so. So that's just a breakdown of the total budget and the general fund allocated to the budget. Debbie alluded to right now the department is housing both the community engagement and the violence prevention partnership and the highlight that I was alluding to is related to the scorecard, which was approved back in April 27th by the oversight committee as well as the community awareness campaign related to the partnership and the strategic planning process that we're about to embark in August. Thank you. We're proud to have moved forward with the scorecard. Some of you are aware of that. In fact, I'll be meeting with you soon to update you on some of the work that we've been doing in the last few months in an effort to create a tool for us that would enable us to look at violence from a much comprehensive view if you will that would help us address violence almost as a public health issue as opposed to a uni-dimensional crime related activity. The scorecard enables us to see what else is going on in the community with our youth. It's not just related to a specific incident but it looks at socioeconomic aspects of the community, education, healthcare, civic engagement in a number of key indicators. We have 17 of those. We have 50 partners that are sitting at the table reactively looking around the community to see who else is missing. So we're very proud of the work that we've done. We're anxious to share that with you. A lot of progress has been done with regards to that. We've also been working on the implementation plan for the next 10 years. So we're looking at this long-term violence is something that we need to be vigilant about. I remember distinctively when I was the co-chair of the Cinco de Mayo event many, many years ago and how far we've come. And I was participating in the Cinco de Mayo event a few days ago and I stayed there until nine o'clock. No incidents, tons of people, a lot of kids, families, and so we've come a long way. And so like I said, I'm proud of the work that we've done with the partnership. Obviously it's been a collaborative effort. We also work very closely with the CAP and we have a strap-plant meeting coming up next month. So we're excited about that. The idea is to align the CAP's energy behind our city council goals and find a way to complement the work that we do and also work together on the different initiatives that the city is working on. So we meet on a monthly basis and we are excited about that work as well. We've also conducted five meetings at the beginning of the year. We provided a report last week on that related to the CAP and some of the input that we got and some of the recommendations that we have moving forward. We'll come back to you with the work plan for the CAP and tell you more about that. And last but not least, as you know, we've been working on the implementation of the open government ordinance. We've asked for input from our community. We've gotten a lot of good feedback. So I'm anxious to come back to you with a second draft and I'll be with you to update you on the different elements that we recommended to be included in the ordinance. So that's all I have. Excellent. Council questions? Thank you for the presentation. I'm sorry, Ms. Carlson. I do have some questions. Thank you for the presentation. I'm very glad to know that we have a new department. I want to go back though, a number of slides. I think one of your very first slides, the seven members of the department. Back more, there we go. So I need you to unpackage this a little bit for me because I appreciate where the crux is coming from on how this department has been staffed. Are these seven new FTEs? They are existing FTEs. They have been reapportioned from other departments. This department used to sit within the city manager's office. It was really hard to segment out in a conversation. This is the beginning of some transparency as I stated from the beginning of the creation of the position that the director of the department would have the violence prevention partnership under them as well as the community engagement a manager under them as well. And so those are the positions. I believe there's an increase in one position that's due to a grant related funding item, but that's coming out of the violence prevention group. Okay. And the violence prevention positions, are they funded by measure O? 100%? Yes. Okay, I imagine that's a pretty large portion of the violence prevention measure O share, is that correct? Well, I mean, you're gonna see in the parks, recreation and parks department, there's a share in the recreation and parks and department as well as a share that is in housing community services that addresses neighborhood revitalization program. All those positions were approved through the oversight board as was directed. So they've been reviewed and approved. Thank you. I just want to make sure from a global perspective that your department does not become consumed by measure O and the violence prevention partnership. And that's what the numbers look like right now. And I can appreciate that that's because we're not staffing you yet on that community engagement side, but that was the purpose we're creating your position. And we have a very effective model of utilizing existing services and promoting collaboration amongst them in the violence prevention partnership. I have no problem having a point person and point people for supporting those efforts, but I need to make sure that as your department gets built out, it is not the measure O violence prevention partnership department. It is the community engagement. And yes, we're working with CAB. And I see those efforts. I just will really be looking to see people on that side of things. Because I remember community engagement coordinators in years past being completely overloaded and overwhelmed and quitting because it was too much. And we still only have one person to do that. Well, you're going to have two. But again, as council set priorities early in the year, one of the clear priorities that was laid out in the priority setting was additional staff for community engagement. That did not move forward as a priority item for council. We're cognizant of that. I think that that is something that we wrestle with on a daily basis is that we're trying to accomplish some really discreet stuff. We're trying to partner across the organization to get to beef that up. But it is, it is, I will not state that this is going to be the Portland model and it cannot be the Portland model. It is not staffed nor funded in the way that the Portland model is. We're working on ways to do that. I think at the end of the budget presentations, one of the things that we're going to be alluding to is how we bring some resources to bear and how we get the cab to help us make some decisions about a neighborhood streets improvement program, which I think we find exciting and should council agree to do a pilot program in that funding mechanism, we would be excited to participate in that. But no, you're not dis, your eyes do not deceive you. It is slanted towards one side of the operation in terms of staffing. But I would also say that that group has a long track record of working in the field that they worked in. We're right now trying to find the titular leader of that part of the organization so that that high make can spend some more time on the other side of the operation, which is the engagement side. But at the end of the day, there will still be two staff members in the community engagement side of the operation. And I appreciate your comments and your concern. One way of looking at this is the partnership is it's really a community engagement tool. And we want to maximize that relationship as well. I appreciate that. And I know that we, as I stated, and please understand where my comments are coming. I mean, I served on the measure of subcommittee. I was on the mayor's gang task force before it was the violence prevention partnership. I absolutely appreciate the value of those tools. My statement comes only there. It's rare that we get a chance as a council to witness the birth of a new department and spending a year in the local government task force to create your position. This is how I would like to see your department develop. And so I just needed to kind of state that global perspective. There was, right. Actually, it was the slide you were on. If you'll go back. Thank you. Oops, sorry. There we go. There we go. So just if I may, I wanted to remind you the measure of $635,000 of that is just the choice grant program. And that does pay for one of those staff members. So if you look, they're much closer than you think. Absolutely. And I appreciate, again, there are a lot of overlaps between what the partnership, what measure, oh, the choice grants, what they're doing and the effect they're having in the community. But I also am aware the, you know, the mayor's getting prevention task force became the violence prevention partnership because there was a shift in what we wanted to be talking about. And your department is another shift. So let's just, I wanna make sure that shifting continues. Thank you. Mr. Weislake. Thank you, Mr. Mayor. I just, I do have a couple of comments. I'm a little concerned about build out and what that means. Cause to me, that means more resources. So I'm, Mr. Mayor. There is no proposed additional resource at this point in this department. So it'd be very similar to Portland starting, last night, starting out strong, kind of withering away in the fourth quarter and over time, et cetera. That wasn't the Portland I was, was citing. I am all, thank you. Couldn't resist. Cause I bring that up cause I'm concerned that choice grants are one half of the budget. And to me that's, those are very good programs and I want to see more going into the community, to the kids as opposed to going into more positions. Cause as was stated last year by one of my cable pointees that community engagement should be inherent in any staff member, any municipal government employee. It's inherent in the position. And I know it's easy for me to say being up here, but you need to expect public participation and feedback. That's just a statement. I'm also still somewhat concerned, not necessarily concerned, but violence prevention has come from gang prevention. And to me, violence prevention sounds more like a general policing statement, which I'm fine with. But this was a very specific measure, measure over gang prevention. Now, how is that, to me it seems like mission creep. And that's, it just, I don't know. I look forward to the scorecard discussion. It's no secret that I've viewed gang crime statistics generated by the city with skepticism in the past. I know gang crime isn't the only measure, but it's a big measure. And that is why I feel why measure of that passed. So I look forward to that discussion. Coming forward. Ms. Combs. Thank you, and delighted to have you on board now. Good department. I'm looking forward