City Council Budget Workshop

>> GOOD EVENING. WELCOME TO THE CITY OF MARTINEZ CITY BUDGET WORKSHOP. IT IS CURRENTLY 6:50 P.M. THANK YOU TO EVERYONE WHO MAY HAVE COUNTED AND FOR THE MEMBERS WHO HAVE BEEN WAITING FOR US TO GET STARTED. IT'S WEDNESDAY, MAY 29th, AND THIS MEETING IS OFFICIALLY CALLED WARNER. CLERK, CAN YOU PLEASE CALL THE ROLL? >> COUNCILMEMBER JAYE HOWARD ? >> PRESENT. >> COUNCILMEMBER MARK ROSS. >> VICE MAYOR DEBBIE McKILLOP . >> EVERYONE PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE. >> NOTED. ALL RIGHT, TONIGHT FOR THE BUDGET WORKSHOP, WE HAVE ONE SPECIAL MEETING ITEM. WE WILL BE DISCUSSING THIS ITEM FIRST AND PUBLIC COMMENT WILL BE HELD UNTIL JUST AFTER THE MEETING, SO YOU CAN ALSO BENEFIT FROM THE PRESENTATION FROM STAFF. THE PUBLIC COMMENT PERIOD WILL BE RESTRICTED TO JUST THE ITEM ON THE AGENDA THIS EVENING. SO THE ONE AGENDA ITEM TONIGHT IS RECEIVE A PRESENTATION ON THE PROPOSED FISCAL YEAR 24-25 GENERAL FUND MIDCYCLE BUDGET ADJUSTMENTS, HOLD A DISCUSSION AND PROVIDE DIRECTION TO STAFF. CITY MANAGER, GET STARTED? >> VERY BRIEFLY, BEFORE I TURN IT OVER TO ASSISTANT CITY MANAGER, I JUST WANT TO MENTION JUST A FEW MONTHS AGO, YOU KNOW, WE CAME BEFORE YOU TO WORK ON OUR MIDYEAR BUDGET ADJUSTMENTS , COMPLETED THAT SUCCESSFULLY, IMMEDIATELY WENT INTO THE MIDCYCLE BUDGET ADJUSTMENTS, WHICH ARE HERE BEFORE YOU TONIGHT FOR DISCUSSION. WE ALSO, IMPORTANTLY, HIRED A NEW FINANCE DIRECTOR, WHO STARTED IN EARLY APRIL WITH US, CLOSE THE BOOKS ON FISCAL YEAR 2023 THROUGH THE AUDIT. WE ALSO REVISED OUR INVESTMENT POLICY. THAT'S EXPECTED TO PAY SOME DIVIDENDS FOR US IN THE NEAR TERM, WHICH IS REFLECTED IN THIS BUDGET FOR THE MIDCYCLE THAT'S PRESENTED BEFORE YOU TONIGHT. THERE ARE A NUMBER OF THEMES THAT WE WILL UNCOVER IN THE BUDGET WORKSHOP TONIGHT RELATED TO REVENUES, RELATED TO EXPENSE, REALLY TO THE GOOD FORTUNE THAT WE HAVE WITH ARPA AND WITH SOME AVAILABILITY OF FUND BALANCE TO DO SOME REALLY IMPORTANT THINGS AND THEN VERY IMPORTANT, WE ARE ALSO GOING TO TALK ABOUT THE LANDSCAPE FROM HERE, WHAT OUR FISCAL POSITION IS, GOING FORWARD AND HOW WE ARE GOING TO ADHERE TO THE COUNCIL'S GOAL OF FISCAL STABILITY AS WE MOVE INTO THIS BUDGET AND THEN VERY SOON START WORKING ON CLOSING OFF AND MOVING TOWARDS THE NEXT TWO YEARS, WHICH WILL BE ADOPTING IN JUNE OF 2025. SO, WITH THAT, I WILL TURN IT OVER AND TONIGHT, WE ALSO HAVE OUR DEPARTMENT HEADS THANKS TO OUR DEPARTMENT MANAGER. SO LAUREN, I WILL TURN IT OVER TO YOU. >> THANK YOU. AND WHILE THE CITY CLERK BRINGS UP THE PRESENTATION, I DO WANT TO ACKNOWLEDGE THE WORK OF STAFF FROM ALL DEPARTMENTS WHO STARTED WORK ON THIS MIDCYCLE BUDGET IN APRIL. WHICH WAS RIGHT AFTER THE FISCAL YEAR 23-24 MIDYEAR BUDGET WAS COMPLETED. ANECDOTALLY, TODAY, I HAVE ONE OF OUR STAFF MEMBERS GO IT FEELS LIKE WE ARE ALWAYS WORKING ON THE BUDGET. AND THE REALITY IS IT'S BECAUSE WE ARE. IT'S ONE OF THE MOST IMPORTANT JOBS THAT WE DO IN CITY GOVERNMENT BUT ALSO, MIKE AND I AND NOW JUNE , IT FEELS VERY IMPORTANT TO INVOLVE ALL PEOPLE AT LEVELS OF THE BUDGETING PROCESS. THIS IS NOT JUST SOMETHING THAT WE DO AT THE TOP LEVEL. EVERYBODY'S INFORMING THE PROCESS, SHAPING THE PROCESS. REALLY TO GET IT HERE TODAY. OOPS , HOLD ON. IS IT --IT'S ON. OKAY. GREAT. SO FIRST, I'M GOING TO START WITH OUR COUNCIL GOALS. I WANT TO FIRST HIGHLIGHT THE COUNCILS FOUR GOALS, STAFF ATTRACTION, RETENTION, FINANCIAL SUSTAINABILITY, VIBRANT AND SUSTAINABLE WATERFRONT AND MARINA, STRONG DOWNTOWN AND COMMERCIAL CENTERS. THESE GOALS WERE ESTABLISHED IN FEBRUARY OF 2023 WHEN WE CAME TOGETHER AS OUR FIRST RETREAT OF THIS CITY COUNCIL. WE MET AGAIN IN FEBRUARY OF 2024 JUST RECENTLY. NOT ONLY TO HEAR, YOU KNOW A COMPREHENSIVE UPDATE ON STAFF'S PROGRESS TO ACHIEVE THE GOALS, BUT ALSO TO REAFFIRM THESE FOUR GOALS LEADING INTO THE FISCAL YEAR 24-25 BUDGET. THE FISCAL YEAR 23-24 BUDGET WAS ADOPTED IN JUNE 2023. IT CONTAINED A $900,000 IN BUDGET CUTS, MOSTLY STEMMING FROM PROFESSIONAL SERVICES. AT THAT TIME, WE CONVEYED TO THE CITY COUNCIL THAT WE WERE ABLE TO MAKE SIGNIFICANT CUTS TO PROFESSIONAL SERVICES BECAUSE OUR HUGE FOCUS LAST YEAR, AS YOU KNOW, WAS FILLING VACANT POSITIONS, AND SO IN FILLING VACANT POSITIONS AND BUILDING THE CAPACITY OF OUR WORKFORCE, IN THEORY, THE THOUGHT WAS THAT WE WOULD BE ABLE TO RELY LESS ON CONSULTANT SUPPORT. ALSO, TO BALANCE THE FISCAL YEAR BUDGET , WE USED A MIX OF ARPA AND RESERVES AND IN MARCH, WHEN WE PRESENTED THE MIDYEAR BUDGET, WE IDENTIFIED JUST OVER $760,000 IN UNANTICIPATED BUDGET EXPENSES. THESE BUDGET EXPENSES STEM FROM A ONE TIME INFUSION TO FINANCE TO REBUILD AND IMPROVE OUR FINANCE OPERATIONS, AND AS YOU KNOW, I'VE COME TO THE COUNCIL ON A FEW OCCASIONS TO SPEAK ABOUT THAT. COST RELATED TO POLICE INVESTIGATIONS AND ECONOMIC DEVELOPMENT INITIATIVES THAT WE KNOW ARE --OUR NEW DIRECTOR HAS BEEN WORKING ON IN THE LAST YEAR. WE ALSO DREW DOWN ON OUR FUND BALANCE, A TOTAL OF $614,000 IS INCLUDED CAPITAL PROJECTS. SOME OF THE HIGHLIGHTS INCLUDED $250,000 TOWARDS THE MARINA EASTERN SEAWALL IMPROVEMENT, $150,000 TOWARDS THE CREEK REPAIR AND MAINTENANCE PROGRAM AND $150,000 TOWARDS THE HIGH LANDS OPEN SPACE IMPROVEMENT PLAN. ADDITIONALLY, WE DID DRAW DOWN ONCE MORE ON THE GENERAL FUND AND ASSIGNED RESERVE FUND OF 198,000, JUST OVER $198,000. THIS INCLUDED THE TWO ADDITIONAL EXPENSES. ONE RELATED TO THE EMERGENCY REPAIRS TO THE DOCK AT THE MARINA. ALSO, ONE EXPENSE RELATED TO THE RECENT SHORTFALL THAT CAME TO THE COUNCIL THIS PAST MONTH AND THEN LASTLY, THE IMPLEMENTATION OF THE MOU WITH THE MARTINEZ POLICE NON-SWORN EMPLOYEES ASSOCIATION. THIS WAS TO THE EFFECT OF THE SALARY ADJUSTMENTS THAT CAME IN --THIS WAS AFTER THE BUDGET WAS INITIALLY ADOPTED. OKAY, SO, FORTUNATELY, OVER THE LAST SEVERAL YEARS, WE HAVE BUILT UP A STRONG RESERVE FUND , WHICH IS AFFORDED AS THE OPPORTUNITY TO DO FUN THINGS, AS MIKE MENTIONED, FOR THE COMMUNITY AND TO MOVE THE CITY FORWARD IN A BIG WAY. SO UP HERE, WHAT I HAVE FOR YOU IS A LIST OF THINGS SINCE FISCAL YEAR 21-22 THAT THE COUNCIL HAS APPROVED THE TRANSFER TO UNASSIGNED RESERVED TO FUND IMPORTANT PROJECTS. NAMELY, IT INCLUDES PROJECTS RELATED TO THE MARINA. THE BIGGEST SINGLE EXPENSE, NOT SINGLED OUT HERE, BUT THE BIGGEST SINGLE EXPENSE WAS THE DREDGING PROJECT. BUT IT ALSO INCLUDED FUNDING TOWARDS THE ESTABLISHMENT OF OUR WATERFRONT MASTER PLAN, WHICH IS OBVIOUSLY, USUALLY CRITICAL FOUNDATIONAL ROAD MAP FOR THE WATERFRONT THAT SETS FORTH THE VISION FOR THE FUTURE AND ALSO, WILL POSITION THE CITY FOR FUTURE OUTSIDE FUNDING. NOTED UP HERE, ONE OF THE TRANSFERS WAS TOWARDS THE IMPROVEMENTS AT THE RANK AND AQUATIC CENTER. ALL OF THESE IMPROVEMENTS HAVE BEEN COMPLETED, AS OF RECENTLY, AND WE ARE EXCITED ABOUT BRINGING THIS BENEFIT TO THE COMMUNITY THIS SUMMER. FINALLY, WITH NEW POOL HEATERS. WE ALSO USE RESERVES TO COMPLETE THE PARK PROJECTS AT HIDDEN LAKES, WHICH INCLUDED NEW RESTROOM AND CONCESSION STAND, IMPROVE A.D.A. ACCESS, AND NEW LANDSCAPING, THEN ALSO AT WATERFRONT FIELD FIVE, WHICH INCLUDED A NEW INFIELD AND BACKSTOP, SHADE COVERINGS OVER THE DUGOUTS AND FIELD IRRIGATION IMPROVEMENTS. I DO WANT TO NOTE THAT THIS WAS SUPPLEMENTAL FUNDING, OF COURSE, TO MEASURE THESE PROJECTS THAT HELPED TAKE THESE PROJECTS OVER THE FINISH LINE. SO STAFF IS THRILLED THAT THE AVAILABILITY OF STRONG RESERVES HAS BROUGHT THE COMMUNITY THESE IMPORTANT PROJECTS, AND NOW THEY ARE OFFICIALLY COMPLETED. AT THIS STAGE, HOWEVER, AND WHAT I DO WANT TO DRAW ON HERE IS WE NOW HAVE A TIGHTER RESERVE THAT STILL MEETS THE CITY'S RESERVE POLICY OF 20% OF OPERATING FUNDS. HOWEVER, THE BACKSTOP OF UNASSIGNED RESERVES IS DIMINISHING WITH ONLY ABOUT $1 MILLION REMAINING ABOVE THE 20% RESERVE REQUIREMENT. THIS MEANS, GOING FORWARD, WE WILL NEED TO BE CAUTIOUS ON WHEN WE USE UNASSIGNED RESERVES TO PICK UP THE TABS FOR UNANTICIPATED EXPENSES. WHAT YOU SEE HERE IS THE GREEN LINE SHOWS THE BENCHMARK OF THE 20% RESERVE AND ALSO REFLECTS HOW IT HAS INCREASED OVER EACH YEAR AS THE BUDGET GROWS. THE PURPLE LINE SHOWS HOW MUCH UNASSIGNED GENERAL FUND RESERVES WE HAVE AVAILABLE AFTER MEETING THE 20% RESERVE REQUIREMENT. THE SPIKE YOU SEE HERE IN FISCAL YEAR 2020-2021 IS A RESULT OF THE PASSAGE OF MEASURE X AND THEN YOU CAN SEE HERE, PROJECTED FOR FISCAL YEAR 25, AS I MENTIONED EARLIER, WE ARE RIGHT AT THE MILLION DOLLAR MARK. SO, AGAIN, THIS IS TO NOTE, WE ARE PROJECTING $1 MILLION OVER THE 20% RESERVE REQUIREMENT. SO WE ARE EXCITED TO PRESENT TO YOU AFTER A BALANCED --25 BUDGET. DEPARTMENT HEADS WERE ABLE TO RECOMMEND ACROSS ALL DEPARTMENTS IN ORDER TO BALANCE THESE BUDGET CUTS. THEY WILL NOT IMPACT OUR ABILITY TO MAINTAIN CORE SERVICES. I WANT TO MAKE THAT CLEAR. BUT I DO WANT TO NOTE SOME OF THE CHALLENGES THAT WE ANTICIPATE IN WITH THE GENERAL FUND THIS COMING FISCAL YEAR. NUMBER ONE THE MAIN CROSS DRIVERS ARE LABOR, INSURANCE, AND PENSION COSTS. I'LL GO OVER THOSE IN A SECOND. I DO WANT TO NOTE THAT WHAT MIGHT CONFUSE YOU IN THE REPORT IS THAT WE ARE PROJECTING INCREASED REVENUES. HOWEVER, THOSE REVENUES ARE NOT KEEPING PACE WITH RISING EXPENSES. SO I DON'T WANT THAT TO CONFUSE THE PUBLIC. IF YOU LOOK AT THE BUDGET, IT DOES SHOW A REVENUE INCREASE. I DO WANT TO NOTE WE ALSO ANTICIPATE, AND THIS IS A BIG REVENUE DRIVERS, IS A HIGHER INTEREST INCOME EARNINGS. AS MIKE MENTIONED, THAT'S BEEN ONE OF THE BIG BENEFITS SINCE JUNE HAS COME TO THE CITY IS REVISING OUR INVESTMENT POLICY. >> WE JUST TRANSFERRED A SIGNIFICANT AMOUNT OF FUNDS INTO AN OUTSIDE INVESTMENT ACCOUNT. WE ARE EXCITED ABOUT THE POTENTIAL. I DO WANT TO NOTE IT IS NOT PERPETUAL. IT REALLY DOES RELY ON WHAT THE INTEREST RATES ARE. ONE YEAR COULD BE GOOD AND WHEN YOU'RE COULD NOT BE SO GOOD. WE ALSO , IN PRIOR FISCAL YEARS, WHENEVER WE HAD A BUDGET GAP OR DEFICIT TO FILL AND NAMELY THIS FISCAL YEAR, WE ALWAYS HAD VACANCIES OR LABOR SAVINGS THROUGH VACANCIES TO LIEN ON. THIS NEXT FISCAL YEAR , BECAUSE WE HAVE SUCH A LOW VACANCY RATE AND THAT WAS ONE OF THE COUNCILS HIGHEST PRIORITIES AND DIRECTION TO US. HOWEVER, THE RESULT OF THAT IS WE CAN'T USE VACANCY SAVINGS. ALSO, AS MIKE NOTED HERE , WE ANTICIPATE THE DEPLETION OF THE ONE TIME ARPA FUNDS AND WE WILL TALK ABOUT THAT A LITTLE LATER. ARPA FUNDS HAVE BEEN USED TO SUPPLEMENT THE BUDGET OVER THE LAST COUPLE OF YEARS. AS I NOTED EARLIER , WE WILL HAVE TO BE CAUTIOUS WITH THE USE OF GENERAL FUND UNASSIGNED RESERVES GOING FORWARD. ONE OF THE EXCITING THINGS THAT JUNE AND I AND MIKE LOOK FORWARD TO BRINGING TO THE COUNCIL IN DEVELOPMENT OF THE NEXT BUDGET IS, AN UPDATED RESERVE POLICY. IT IS ONE OF THOSE THINGS THAT SITS IN THE BACK OF THE BUDGET BOOK . IS THERE AND EXISTS, BUT WE OFTEN DON'T BRING IT OUT AND TALK ABOUT IT. WE WILL BE SURE TO HAVE SOME PARAMETERS AROUND HOW TO PROPERLY USE RESERVE FUNDS SO WE ARE BEING DISCIPLINED IN OUR APPROACH. REGARDING COST DRIVERS FOR THE NEXT FISCAL YEAR, NUMBER ONE IS INSURANCE. WE ARE ANTICIPATING --WHAT I AM SHOWING YOU HERE IS THE INCREASE FROM THE ORIGINAL PROPOSED BUDGET. WE ARE ANTICIPATING AN INCREASE OF JUST OVER $212,000. INSURANCE DOES IMPACT ALL FUNDS. THE TWO BIGGEST INSURANCE PROGRAMS ARE WORKER'S COMPENSATION AND GENERAL LIABILITY. THIS IS AN EXTERNAL COST THAT IS DIFFICULT FOR US TO CONTROL. THERE IS IMPORTANT WORK HAPPENING INTERNALLY TO IMPROVE OUR SAFETY CULTURE WITHIN THE ORGANIZATION, AS YOU MIGHT BE AWARE. OUR SENIOR MANAGEMENT ANALYST, STEVE DIVINE IS THE SAFETY LEAD IN THE ORGANIZATION AND HE IS ALWAYS WORKING DILIGENTLY TO BRING US NEW TRAINING AND IMPROVE POLICY AND SAFETY PLANS AND KEEP SAFETY AT THE FOREFRONT SO WE HAVE LESS ACCIDENTS. EVEN SO, WE ARE HAVING TO DEAL WITH THE INDUSTRY IMPACTS OF INSURANCE GOING UP EVERYWHERE AT THIS TIME, REALLY. ALSO , WE ARE ANTICIPATING AN INCREASE TO OUR ANNUAL PENSION PAYMENT OF JUST OVER $693,000. WE MAKE THAT PAYMENT EVERY JULY AND THIS, AGAIN IS A COST THAT IS GOING TO BE FELT ACROSS ALL FUNDS. ONE THING TO NOTE , AND I WILL SAY THIS AGAIN, IT IS AN EXTERNAL COST THAT IS DIFFICULT. WE CAN'T CONTROL IT. WE ARE AT THE MERCY OF CALPERS AND WHATEVER THEIR INVESTMENT IS. WE ARE ANTICIPATING LABOR INCREASES OF JUST OVER $663,000. THIS IS THE IMPLEMENTATION OF CONTRACTUALLY OBLIGATED COLAS FOR THE LABOR GROUPS. THAT IS WHAT THAT REFLECTS. ALSO NOTING ANIMAL CONTROL INCREASES AND THIS IS GOING TO ONLY AFFECT THE POLICE BUDGET, WHICH WE WILL TALK ABOUT LATER. THAT IS AN INCREASE OF $62,000. I DO WANT TO NOTE THAT THE INITIAL PROPOSED BUDGET THAT ANIMAL CONTROL PROVIDED TO THE CITY MANAGER AND ALL THE CITY MANAGERS WITHIN CONTRA COSTA COUNTY A COUPLE MONTHS AGO WAS SIGNIFICANTLY HIGHER. THANKFULLY, THE PUBLIC MANAGERS ASSOCIATION, WHICH MIKE AND I ARE A PART OF LOBBIED TO ANIMAL CONTROL TO REALLY BRING DOWN THOSE COSTS , WHICH THEY HAVE. THERE IS STILL AN INCREASE HERE. LASTLY, I WANT TO RECOGNIZE THE RECOGNITION OF NEW HOLIDAYS. THIS IS A RESULT OF THE COUNCIL'S DESIRE TO INCLUDE BOTH JUNETEENTH AND CESAR CHAVEZ DAY AS TWO NEW CITY HOLIDAYS. WE CAN'T QUITE MAKE THAT COST NEUTRAL, SO WE ARE ABSOLUTELY GOING TO LIKELY HAVE TO ADD A NEW CITY HOLIDAY TO THE CALENDAR. WE HAVE NOTIFIED THE BARGAINING UNITS AND THEY ARE AWARE OF THIS. WE HAVEN'T STARTED BARGAINING ON IT BUT NAMELY, THAT IMPACT WILL BE IN POLICE AS WELL, BECAUSE THEY ARE THE 24/7 WORKERS OF THE CITY. THAT WILL BE THE EFFECT THERE. >> AFTER THE ADOPTION OF THE FISCAL YEAR 24-25 BUDGET WE DO RECOMMEND THE CITY COUNCIL IN CONCERT WITH STAFF DEVELOP AND ADOPT THE FISCAL SUSTAINABILITY PLAN. FISCAL SUSTAINABILITY PLANNING IS A BEST PRACTICE IN CITY MANAGEMENT AND IT INJURES A FISCALLY RESPONSIBLE APPROACH TO PLANNING FOR THE FUTURE WHILE MEETING CURRENT AND FUTURE OBLIGATIONS AND MAINTAINING CORE SERVICES. THIS PLAN SHOULD INCLUDE, AS NOTED UP HERE, STRICT ADHERENCE TO CITY COUNCIL GOALS , IMPLEMENTING A MULTI-YOUR FORECAST, AND I DO WANT TO NOTE I SAW THAT. YES. IMPLEMENTING A MULTI-YOUR FORECAST AND STRATEGIC PLAN . THAT IS SOMETHING WE DO LOOK FORWARD TO WITH JUNE'S ARRIVAL HERE. SHE WILL BE ABLE TO BRING THAT FORWARD TO THE COUNCIL IN THE NEXT YEAR. AS YOU KNOW RIGHT NOW, WE ONLY LOOK ONE YEAR OR TWO AHEAD. THE BIG CONCERN IS , WHEN WE MAKE DECISIONS THAT ARE ACTUALLY GOING TO HUNT AS YEARS AND YEARS DOWN THE ROAD WE DO NEED TO BE THINKING ABOUT THAT. PRIORITIZING THE BUDGETING OF CORE SERVICES AND AGAIN, THIS IS REALLY US TRYING TO REALLY DEFINE WHAT IS CORE VERSUS WHAT IS NICE TO HAVE. IMPLEMENTING A PROCESS TO MANAGE COMPETING PRIORITIES. THIS IS SOMETHING THAT AFFECTS US ON A DAILY BASIS. WHETHER IT IS THE COMMUNITY OR EVEN THINGS THAT COME IN THROUGH THE COUNCIL. WE GET REQUESTS REGULARLY TO DO THINGS THAT UNFORTUNATELY , COST A LOT OF MONEY AND ARE UNBUDGETED. WE NEED SOME SYSTEM TO CAPTURE THOSE REQUEST AND TO GET THEM AND TO MAKE SURE WE ARE VETTING THEM AGAINST THE COUNCIL'S GOALS. I MENTIONED THE CAUTIOUS USE OF GENERAL FUND UNASSIGNED RESERVES. REVISITING FISCAL POLICIES IS SOMETHING JUNE AND I WILL LOOK AT THE COUNCIL IN THE FUTURE. MOST IMPORTANTLY IS PRESERVING AND GROWING OUR REVENUE STREAMS. THE COUNCIL, AS YOU KNOW HAS A GOAL OF FISCAL SUSTAINABILITY. WHILE WE FOCUSED A LOT ON THE OTHER GOALS , STAFF RETENTION, WATERFRONT, DOWNTOWN , WE REALLY NEED TO SPEND SOME TIME THIS YEAR TRYING TO FIGURE OUT WHAT ARE OUR APPROACHES TO THIS. >> I DO WANT TO ADDRESS THE ELEPHANT IN THE ROOM A LITTLE BIT BECAUSE WE ARE COMING HERE TONIGHT TO CONVEY A MESSAGE OF FISCAL DISCIPLINE AND TAKING A MEASURED, CAUTIOUS APPROACH, THIS IS NOT A DOOM AND GLOOM BUDGET. I THINK SOMETIMES, WHEN WE COME TO YOU AS CITY OFFICIALS AND PROVIDE GOOD , COMPREHENSIVE BUDGET INFORMATION AND WE ARE TRYING TO DO OUR BEST BEING FISCAL AGENTS OF THE CITY, PEOPLE SEE IT AS NEGATIVE. THIS IS, ACTUALLY REALLY GOOD BECAUSE WE ARE TRYING TO LOOK AHEAD, SEE WHERE THE POTHOLES ARE IN THE FUTURE , AND TRY TO CREATE PREVENTATIVE MEASURES , OR PROACTIVE MEASURES TO ADDRESS THOSE. I SAY THIS BECAUSE OTHER CITIES ARE IN A MUCH DIFFERENT POSITION TODAY. THE CITY OF SAN RAMON, FOR EXAMPLE IS PROJECTING A $14.1 MILLION DEFICIT IN THE NEXT FISCAL YEAR . BY THE WAY, A LOT OF THE STUFF YOU CAN GOOGLE. IT IS OUT THERE. THEY HAVE ALREADY FROZEN 20 POSITIONS , INCLUDING POLICE OFFICERS. AND, ARE ANTICIPATING SIGNIFICANT CUTS TO PARK MAINTENANCE AND OTHER CORE AREAS OF THE CITY. AND, THEY TOO ARE INSIGNIFICANT BUDGET DISCUSSIONS WITH THEIR COUNCIL ABOUT WHAT THOSE CUTS LOOK LIKE. BENICIA STARTED THIS CONVERSATION LAST YEAR. THEY HAD $6.5 MILLION DEFICIT THIS FISCAL YEAR. THEY DECLARED A FISCAL EMERGENCY IN THE FALL AND ELIMINATED SEVERAL POSITIONS OUT OF THEIR BUDGET. THAT INCLUDED SIGNIFICANT THINGS INCLUDING THE FIREWORKS SHOW. EVENTUALLY, THAT LED THEM TO THE MARCH BALLOT WHERE THEY WERE ABLE TO SECURE TWO VOTER INITIATIVES. THIS WAS A TOT AND THE CELLS --SALES TAX INITIATIVE TO HELP INFUSE THE GENERAL FUND. I SPOKE TO THEM TODAY AND THEY ARE NOT SURE IF THEY ARE OUT OF THE WOODS EVEN WITH THOSE TWO VOTER APPROVED MEASURES. THEY ARE STILL DOING A LOT OF FISCAL PLANNING TO UNDERSTAND WHAT THE FUTURE HOLDS. WHAT I AM TOLD IS THEY ARE LOOKING AT PLACING A CHARTER CITY REAL PROPERTY TRANSFER TAX , ANOTHER TAX MEASURE ON THE BALLOT IN NOVEMBER. LAST HERE, WHAT I WILL MENTION IS SUISUN CITY , WHO ACTUALLY DID DIP INTO THEIR RESERVES UNDER THE 20% REQUIREMENT AT ABOUT $1.9 MILLION , IN ORDER TO PREVENT CUTS TO STAFF AND CORE SERVICES. I SAY THIS BECAUSE WE ARE COMING TO YOU TODAY PROACTIVELY. WE HAVE A LITTLE BIT OF WIGGLE ROOM , BUT WE WANT TO BE THINKING AHEAD FOR THE NEXT FEW YEARS. NOW, INTO OUR DISCUSSION . ON THE STAFF REPORT THERE WAS AN ATTACHMENT THAT PROVIDED YOU A SUMMARY OF EVERYTHING THAT HAS BEEN ALLOCATED FOR ARPA THIS FAR. WHAT HAS BEEN SPENT AND WHAT IS PLANNED TO BE SPENT. THE OUTCOME OF THAT IS WE HAVE JUST OVER $172,000 REMAINING. MYSELF, JUNE , AND MIKE CAME TO THE BUDGET FINANCE SUBCOMMITTEE EARLIER THIS MONTH AND RECOMMENDED THAT THE REMAINING FUNDS BE ALLOCATED TOWARDS THE COUNCIL SHORT-TERM HIGH VISIBILITY WINS. AS YOU MAY RECALL , THESE WERE VOTED ON BY THE COUNCIL AT THE RETREAT IN FEBRUARY. WE DID INCLUDE AN ATTACHMENT OF THE RETREAT REPORT ON THE STAFF REPORT, AS WELL. BUT, NUMBERS 1-7, IF YOU RECALL WHERE THE ITEMS THE COUNCIL WANTED US TO SPEND SOME TIME ON. IN ADDITION, I WANT TO NOTE HERE THAT STAFF IS RECOMMENDING SOME OF THAT FUNDING , THE $172,000 ALSO GO TOWARDS REPAIRS TO MOUNTAIN VIEW PARK, THE BASKETBALL COURT. AS YOU MAY RECALL, WE DEFUNDED THAT IN THIS FISCAL YEAR IN ORDER TO FUND HIGH MEADOWS. SO, WE WOULD LIKE THE COUNCIL SUPPORT THERE. AT THE BUDGET AND FINANCE SUBCOMMITTEE, ITEMS 2-4 UNDER ADDITIONAL REQUESTS WERE RAISED BY VICE MAYOR McKILLOP AND MAYOR ZORN. WE NEED A SIGNIFICANT ENGAGEMENT EFFORT IN ORDER TO WORK ON ACHIEVING THESE THINGS. WHAT WE WILL DO AND I KNOW THE COUNCIL WILL HAVE SOME FEEDBACK TONIGHT ON THAT. IS THE COUNCIL AGREES WITH THIS ALLOCATION TOWARDS THESE ITEMS, WE WOULD BRING BACK THE RESOLUTION AT THE JUNE 29th MEETING. REALLY QUICKLY, LAURENT IT WASN'T INTENDED TO BE UTILITY BOX ART. IT WAS INTENDED TO BE PUBLIC ARTS. PLEASE CLARIFY THAT. >> I AM SO SORRY. >> OKAY, I WILL BRIEFLY HIGHLIGHT ADJUSTMENTS TO REVENUE AND EXPENDITURES IN THESE NEXT TWO SLIDES. I WANT TO NOTE THAT THE ADJUSTMENTS I WILL BE WALKING YOU THROUGH HERE ARE ADJUSTMENTS FROM THE ORIGINAL FISCAL YEAR 2024-2025 BUDGET THAT WAS ADOPTED LAST JUNE. FOR REVENUES WE ARE PROPOSING AN ADJUSTMENT --I SHOULD SAY AN INCREASE OF 870 SIKES -- $896,000. I WON'T GO THROUGH EVERY LINE HERE, BUT IT IS THE $278,000 INCREASE IN PROPERTY TAX REVENUE THAT WE ARE THANKFUL FOR. WE THINK IT INDICATES THAT MARTINEZ PROPERTY VALUES REMAIN STRONG. ALSO, I WILL NOTE HERE UNDER THE USE OF MONEY AND PROPERTY , YOU SEE A PRETTY BIG SPIKE OF $763,000 . THAT IS THE INTEREST INCOME I MENTIONED EARLIER. AND, SOME OTHER THINGS, TOO. GENERALLY SPEAKING, THE INCREASE IS DUE TO THE INTEREST INCOME WE ANTICIPATE RECEIVING . ANTICIPATED DECLINES IN REVENUE INCLUDE NOTABLY, JUST OVER $280,000 IN SALES AND USE TAX , WHICH IS ABOUT THE BURN 1%. IT IS THE SECOND LINE ITEM. WE UNDERSTAND THIS TO REFLECT A CONTINUED DECLINE IN CONSUMER SALES CONSISTENT WITH TRENDS ACROSS THE STATE AND THE NATION . AND, THE LOSS OF RETAIL TAX GENERATORS DUE TO BUSINESS CLOSURES OR BUSINESS RELOCATIONS IN TOWN. WE HAVE BEEN HOPING EACH AND EVERY TIME WE COME TO THE BUDGET AND FINANCE SUBCOMMITTEE OR THE COUNCIL WITH THE SALES TAX REPORT, WE HAVE BEEN HOPING FOR A BETTER REBOUND AFTER THE PANDEMIC. UNFORTUNATELY, WE ARE NOT SEEING THAT YET. I WILL NOTE HERE A DECREASE , TOO IN JUST OVER $262,000 IN CHARGES FOR SERVICES. THESE BUDGET ESTIMATES WERE INITIALLY BASED ON A THREE-YEAR AVERAGE OF REVENUES. AFTER CAREFUL EXAMINATION OF ENGINEERING PLAN CHECK FEES AND PLANNING CHECK FEES, IT WAS DETERMINED THAT THE REVENUE STREAMS WERE OVERSTATED IN PREVIOUS YEARS. I DO WANT TO THANK A LOT OF OUR NEW STAFF AND NEW DEPARTMENT HEADS WHO CAME IN AND REALLY GAVE THAT BUDGET A THOROUGH EXAMINATION AND IDENTIFIED SOME INCORRECT BILLING PROCEDURES. ALSO, IN THIS SECTION WE ARE ALSO , OVERALL NOTING A REDUCED CONSTRUCTION ACTIVITY . OKAY, A COUPLE MORE SLIDES. THIS IS OUR EXPENSE ADJUSTMENTS. WE ARE ANTICIPATING A TOTAL INCREASE OF $100,000 . I WANT TO HIGHLIGHT THE INCREASE IN POLICE OF JUST OVER $745,000. ABOUT HALF OF THIS IS RELATED TO THE INCREASED PENSION COST BECAUSE AS YOU KNOW, POLICE WILL NORMALLY BEAR THE BRUNT OF THOSE COSTS. ALSO , INCREASES IN OVERTIME. I DID NOTE EARLIER THAT THE CITY HOLIDAY , THE ADDITION OF THE NEW CITY HOLIDAY IS ABSORBED AND THE POLICE BUDGET, AS WELL. WHAT I DO WANT TO NOTE IS THAT WE DID THE INCREASE IN ANIMAL CONTROL COSTS I MENTIONED EARLIER, THE CORE OUTREACH THAT ANDREW --THE POLICE CHIEF HAS BEEN BRINGING FORWARD TO THE COUNCIL. THOSE INCREASES WILL BE ABSORBED THROUGH REDUCTIONS HE HAS BEEN ABLE TO PROPOSE IN HIS BUDGET. DID YOU HAVE A QUESTION? >> I AM ASSUMING THE CATEGORY IS EXPENDITURE CATEGORY. >> YES . SORRY ABOUT THAT. I SEE WHAT YOU ARE SAYING. I APOLOGIZE. YES. JUST FOR THOSE WHO MAY BE LOOKING AT IT. >> SORRY. WE HAVE ABOUT FIVE PAIRS OF EYES THAT LOOK AT THIS BEFORE. OKAY, THE ONLY THING I DO WANT TO NOTE HERE BECAUSE THIS IS NOT EASY TO READ AND I DON'T EXPECT YOU TO. THIS IS A CHART THAT IS IN THE STAFF REPORT. IT REALLY ENCOMPASSES EVERYTHING. WE DID REALIZE AFTER PUBLISHING THE STAFF REPORT THAT WE LEFT OUT TWO TRANSFERS, WHICH WAS RELATED TO THE EASTERN SEAWALL AND THE SALARY ADJUSTMENTS FOR THE NON-SWORN MOU. WE HAVE UPDATED THE CHART AND IT IS SHOWN HERE, TODAY. IT IS ADJUSTED FROM YOUR STAFF REPORT AND OF COURSE, WHEN WE BRING FORWARD THE FULL BUDGET TO THE COUNCIL ON JUNE 29th WE WILL ENSURE THAT REVISION IS PROPERLY REFLECTED. JUNE 22nd. >> SORRY. I AM ALL OVER. REGARDING BUDGET OBJECTIVES , I DO WANT TO NOTE A FEW EXCITING THINGS WE HAVE COMING FORWARD THIS YEAR. WE ARE LOOKING AT EXPANDING CITY HALL OFFICE HOURS. THAT IS SOMETHING WE ARE STILL FLUSHING OUT AND I THINK THE CITY MANAGER WILL BE DISCUSSING THAT FURTHER WITH THE COUNCIL COMING UP. WE STILL HAVE SOME CONVERSATIONS WITH STAFF COMING UP. WE DO LOOK FORWARD TO THAT. WE WILL ALSO BE HAVING A NEW DIA DE LOS MUERTOS EVENT. WE DECIDED TO DO DIA DE LOS MUERTOS OVER CINCO DE MAYO. WE THINK IT IS CULTURALLY SIGNIFICANT. WE ARE EXCITED TO BE THAT TO THE COUNCIL. WE PLAN TO HAVE THAT OUT HERE IN THE PLAZA. WE ARE ALSO GOING TO REVAMP PUMPKIN DUNKIN BECAUSE IT IS BEEN GETTING LOW ATTENDANCE. IT IS QUICK AND PEOPLE JUMP IN AND OUT AND LEAVE. WE WANT TO REVAMP THAT MORE INTO A FALL FESTIVAL FOR PEOPLE CAN COME , HAVE ACTIVITIES, DRINK HOT CIDER , LIKE SOMETHING YOU WOULD GET IF YOU TRAVELED . HAVE ANOTHER QUESTION ABOUT THE DIA DE LOS MUERTOS. THAT NORMALLY IS IN OCTOBER AND YOU ARE GOING TO DO IT IN WHEN? >> I THINK IT IS THE FIRST WEEKEND IN NOVEMBER. >> SO, IN THE FALL BUT YOU ARE CELEBRATING IT IN MAY? >> NO, THE EVENT WOULD BE THE FIRST WEEKEND IN NOVEMBER, WHATEVER THAT WEEKEND IS. >> SHE MEANS INSTEAD OF HAVING CINCO DE MAYO. >> OKAY, I MISUNDERSTOOD. I THOUGHT YOU WERE GOING TO CELEBRATE THAT IN A DIFFERENT TIME OF YEAR. >> I BROUGHT UP CINCO DE MAYO BECAUSE IT IS BEEN BROUGHT UP BY THE COUNCIL AS AN INTEREST POINT. AFTER SOME BRAINSTORMING WE DID WITH STAFF WE DECIDED TO GO FORWARD WITH THAT. >> I GET IT. THANK YOU. THAT IS MORE CLEAR. >> WE ALSO LOOK FORWARD TO REVAMPING HOLIDAY FROLIC , AS WELL. THAT EVENT HAS BEEN HELD THE SAME WAY FOR GENERATIONS , IF NOT RECENTLY FOR YEARS. EVERYBODY LOVES IT, BUT WE THINK THERE ARE SOME ADDED FEATURES WE CAN BRING THAT WOULD HIGHLIGHT THE EVENT TO MAKE IT A LITTLE MORE MAGICAL. DOWNTOWN POWER WASHING IS SOMETHING THAT HAS BEEN CONSISTENTLY BROUGHT BY THE COUNCIL. IN TALKING WITH THE PUBLIC WORKS DIRECTOR WE DO ANTICIPATE, THROUGH THE BUDGET WE CAN DO ONE OF THOSE. WE WILL WORK TO GET A SECOND ONE FUNDED , MAYBE TWO PRIVATE DONATIONS. OR, THROUGH PARTNERSHIP WITH BUSINESSES. FOR ENTRYWAY AND MEDIAN ENHANCEMENTS , SOME OF THESE MEDIA --MEDIAN ENHANCEMENTS HAVE BEEN UNDERWAY SO FAR. IF YOU HAVE QUESTIONS ABOUT THOSE THE PUBLIC WORKS DIRECTOR CAN HIGHLIGHT THEM. ABSOLUTELY, WE WILL CONTINUE THE MEDIAN ENHANCEMENTS AND ALSO GIVE ATTENTION TO THE ENTRYWAY SIGNS. THAT WAS SOMETHING BROUGHT UP DURING THE RETREAT AS A SHORT-TERM, HIGH VISIBILITY WIN AND WE WILL CONTINUE THAT OVER THIS NEXT FISCAL YEAR. THE SIDEWALK REPAIR PROGRAM , I AM VERY EXCITED TO ANNOUNCE THAT THE PUBLIC WORKS DIRECTOR IS JUST PUTTING THE FINISHING TOUCHES ON A REVISED PROGRAM. HE DOES ANTICIPATE ROLLING THAT PROGRAM OUT FORMALLY THIS FISCAL YEAR. LASTLY , THE PUBLIC WORKS DIRECTOR AND I TALKED ABOUT BEING ABLE TO GET PROJECT SIGNAGE UP REALLY QUICKLY. AT THE VERY LEAST , AT PINE MEADOWS AND HIDDEN VALLEY NICKEL BALL COURTS. DID YOU WANT TO ASK NOW QUICK >> YES. I HAVE A QUESTION ABOUT THE SIDEWALK REPAIR PROGRAM BECAUSE THIS IS SOMETHING THAT IS BEEN AROUND FOR A WHILE. IS THAT THE SAME TYPE OF PROGRAM? WILL YOU HAVE THE SIDEWALK REMOVED FOR FREE? OR IS THERE A STIPEND? WHAT IS THE BENEFIT TO THE CITIZENS TRYING TO REPAIR THEIR SIDEWALKS? IT IS JUST SOMETHING I HAVE BEEN PASSIONATE ABOUT BECAUSE PEOPLE DON'T KNOW THEY HAVE THIS ABILITY TO SEEK OUT THE FUNDING . I TRY TO MAKE IT MORE VISIBLE BECAUSE IT IS IMPORTANT. SIDEWALKS NEED TO BE SAFE. >> THAT WILL CONTINUE. WE ARE ALSO LOOKING AT WHAT IS CALLED SHADING PROGRAM WHERE WE CAN GO IN AND SHADE THE UPLIFT IF IT IS OVER TWO INCHES HIGH WITHOUT HAVING TO DO THE REMOVAL AND REPLACEMENT WE ARE THINKING THE CITY WOULD PICK UP THE TAB FOR THAT BECAUSE IT WOULD BE AT A FRACTION OF THE COST. >> THANK YOU. THAT IS EXCITING. HOPEFULLY, PEOPLE WILL KNOW IT IS AVAILABLE AND TAKE ADVANTAGE OF IT WHEN IT ROLLS OUT. THANK YOU. LASTLY, OUR FOCUS OBVIOUSLY, TONIGHT HAS BEEN THE GENERAL FUND. I DO WANT TO NOTE HERE FOR THE OTHER FUNDS WE HAVE HERE, WHICH WE WILL BRING A BUDGET FORWARD TO ON JUNE 26. IT IS FOR THE WATER FUND. AGAIN , WE ARE SEEING INCREASES RELATED TO THE PENSION COSTS THAT I MENTIONED TO YOU EARLIER. $50,000 IN UTILITY COSTS AND $155,000 IN PROFESSIONAL SERVICES RELATED TO ADDRESSING NEW WATER QUALITY REGULATION AND ANTICIPATED REPAIR AND MAINTENANCE ASSOCIATED WITH THAT. THERE IS NO ADJUSTMENT RECOMMENDED FOR THE PARKING FUND, SIMILAR TO THE EQUIPMENT REPLACEMENT FUND. FOR MANAGEMENT INFORMATION SYSTEMS , WE ARE SEEING SOME INCREASES RELATED TO LICENSING. WE ARE EXPECTING OUR LICENSING COSTS TO GO UP THIS YEAR, AS WELL AS PURCHASES FOR NONCAPITAL EQUIPMENT. THIS IS JUST KEEP PLACE --PACE WITH REPLACEMENT PLAN FOR ALL OF OUR STUFF. LASTLY, FOR THE MARINA FUND WE HAVE NO ANTICIPATED REVENUE FROM ALMAR , WITH A SLIGHT INCREASE FROM RENTAL INCOME AND ANTICIPATED DECREASE FOR PROFESSIONAL SERVICES. WE WILL BRING FORWARD THOSE DETAILS IN GREATER DETAIL FOR JUNE 26 . >> FOLLOWING INPUT TONIGHT WE WE --WILL RETURN TO YOU ON JUNE 26, 2024 WITH REVISIONS AND REQUEST AN ADOPTION OF THE FISCAL YEAR 2024-25 BUDGET. >> DOES ANYONE HAVE ANY QUESTIONS FOR LAUREN? YES, I WANT TO GO BACK TO SLIGHT 13 FOR A MINUTE. THEN, I HAVE SOME COMMENTS. CAN YOU GO BACK TO SLIDE 13, PLEASE? THANK YOU. I HAVE TWO SIMPLE QUESTIONS TO KICK IT OFF AND I CAN LET OTHERS MAKE MORE QUESTIONS. ONE OF THE ITEMS OF A DISGRACE --DECREASE WAS SALES AND TAX. IN 2020 WHEN PEOPLE REALLY STARTED ORDERING ONLINE WITH THE FERVOR , SALES AND USE TAX AND BACK TO US. OVER THE PAST COUPLE OF YEARS THEY ARE NOW GOING TO--I AM FORGETTING THE PHRASE, THE CITY IN WHICH IS FULFILLING THE ORDERS. >> WAFER DECISION. >> THANK YOU. WE ARE NOT GETTING THOSE REVENUES. ARE WE SEEING PEOPLE SPEND MORE MONEY ONLINE AND THAT IS WHY WE ARE NOT GETTING THE BENEFIT OF THE SALES AND USE TAX QUICK >> THAT IS ABSOLUTELY TRUE. THAT IS A PART OF IT. WE ARE GETTING LESS IN THE COUNTY PULL AND HOW THAT IS ROLLED UP. AND MORE MONIES ARE GOING TO PLACES WHERE THE DISTRIBUTION CENTERS ARE. YOU ARE RIGHT, EARLY IN THE PANDEMIC WE HAD A NICE BUMP IN OUR SHARE OF THE COUNTY POOL AND IT WAS DISTRIBUTED WITHOUT SO MUCH EMPHASIS ON THAT POLE. THERE WAS SO MUCH ONLINE PURCHASING TO BE CLOSED AND STRIP MALLS WERE DRAMATICALLY DECREASED IN AVAILABILITY. SO, WE BENEFITED TREMENDOUSLY FROM THAT AND ON THE FLIPSIDE WE ARE SEEING MUCH LESS SIGNIFICANT SHARE. HOWEVER, IT IS STILL OUR NUMBER ONE GENERATOR , SALES AND USE TAX , BUT STILL LESS THAN WE HAD BEFORE. TO CLARIFY, WE ARE PROJECT DOWN FROM ACTUALS --IT IS RIGHT HERE, ISN'T IT QUICK >> IT IS FROM THE PROPOSED FISCAL YEAR 24-25 BUDGET. >> AND WE ARE ANTICIPATING THAT DROP. OKAY. THE OTHER QUESTION I HAD WAS IN RESPECT TO THE PARKING FUND. MY UNDERSTANDING IS WE HAVE RECEIVED GRANT FUNDING AND WE ARE PLANNING TO REVAMP PARKING METERS AND ALL THIS STUFF AND THAT ROE SAYS, NO CHANGE. CAN YOU SPEAK TO THAT QUICK JILL , YOU WANT TO COMMENT ON THE TIMING? WE ARE WORKING WITH THAT MTC GRANT , THE 850,000. THAT IS SEPARATE FROM OPERATING. THAT IS ONE TIME FUNDING WE CAN USE FOR A VARIETY OF THINGS . IT IS A CAPITAL GRANT. MORE INFORMATION ON THAT WILL BE COMING. THERE HAVE BEEN A LOT OF INTERNAL MEETINGS ABOUT THAT AND TRYING TO PRESENT OPTIONS. WE TALKED BEFORE ABOUT A PUBLIC WORKSHOP. WE WILL TEST THE PULSE OF THE COUNCIL AND SEE WHAT YOU ARE INTERESTED IN. THERE ARE A LOT OF OPERATIONAL THINGS THE TEAM HAS BEEN WORKING THROUGH WITH THAT. THAT IS WHY THAT 850 IS NOT REFLECTED BECAUSE IT IS NOT INCLUDED AS PART OF OPERATIONAL, PER SE. >> ARE YOU REFERRING TO THE GRANT? >> YES. PHASE TWO OF THE DOWNTOWN PARKING STUDY. >> WHICH WE WILL SHARE . WE DID RECEIVE ADDITIONAL FUNDING TO HELP AUGMENT THE COST. THEY WERE WELL ABOVE WHAT THE GRANT WAS. THE NEXT PHASE IS TO EVALUATE LOCATIONS TO SEE WHAT TYPES OF METERS , PAY BOXES AND SO FORTH WOULD BE BECAUSE ALL OF THEM COME WITH AN ONGOING COST. WE NEED TO MAKE SURE THAT WHILE THAT GRANT IS LOVELY AND HELPS US GET OUR STRUCTURE IN, WE HAVE TO BE MINDFUL IF WE WILL BE INCREASING WITH THE ONGOING COST IS TO MANAGE AND MAINTAIN IT IS A SOFTWARE, ANNUAL COSTS AND SO FORTH. THAT IS LIKE A BIG ANIMAL RIGHT NOW THAT WE HAVE TO TACKLE. >> I WAS JUST GOING TO CLARIFY. WE SHOULD PROBABLY, EXPECT MOVEMENT IN THAT AREA OVER THE NEXT YEAR, RIGHT? LIKE , IN THE 24-25 BUDGET. >> EARLY IN THAT TIMEFRAME IS WHEN WE WILL DO A LOT MORE MOVEMENT. THERE ARE STILL A LOT OF UNKNOWN QUESTIONS . WE JUST RECEIVED ALL THE DATA AND WE ARE TRYING TO PARCEL THROUGH IT. WE STILL HAVE TO MEET AGAIN WITH THE POLICE DEPARTMENT TO DETERMINE WHAT THEIR NEEDS ARE, AS WELL AS OUR PUBLIC WORKS STAFF. WE HAVE THE DATA CAPTURED AND NOW, WE HAVE TO COME BACK TO THE GROUPS AND FIGURE OUT WHAT IT MEANS AND MAKE THE BEST RECOMMENDATIONS TO THEN, BE ABLE TO GO FORWARD AND SHARE IT WITH THE PUBLIC AS WELL AS TALK WITH THE COUNCIL ABOUT THIS. IT IS NOT BEING REFLECTED IN HERE AS A REVENUE BECAUSE THE METERS AND EVERYTHING WILL NOT BE IMPLEMENTED WITHIN THE YEAR. BUT, THAT DOESN'T MEAN THERE MIGHT BE A CHANCE, BASED AS WE GO THROUGH THE YEAR AND THE CONVERSATIONS OF A PHASED APPROACH AND LOOKING TO INCREASE THE REVENUE BY CHANGING THE COST FOR THE METERS. RIGHT NOW , WE ARE VERY LOW ON THE RATES IN WHICH WE CHARGE. THAT DOESN'T HAVE TO BE SIMULTANEOUS WITH THE PROJECT , ITSELF. THERE ARE A LOT OF MOVING PIECES FOR DISCUSSION THAT WILL BE COMING FORWARD. >> THANK YOU. >> I WOULD ADD, TOO TO THE PARKING FUND OR THE CITATIONS. THEY ARE ACTUALLY, BUT IN THE GENERAL FUND. THE CHIEF , WITH AUGMENTATION OF STAFF AND POLICE ASSISTANCE AND ALSO SELECTION OF A NEW CITATION VENDOR COMPANY WOULD BE ABLE TO BOOST THAT SIGNIFICANTLY. THAT IS ACTUALLY , REFLECTED IN THE GENERAL FUND AS OPPOSED TO THE PARKING LOT. >> THANK YOU, LAUREN FOR THE PRESENTATION. THANK YOU TO THE FINANCE STAFF FOR ALL YOUR EFFORTS. A COUPLE OF QUESTIONS AND MAYBE A COMMENT HERE. SO, WITH RESPECT TO THE DECREASE IN THE SALES TAX, I APPRECIATE THE EARLIER QUESTION MADAM MAYER. I AM ALSO WONDERING OF THAT AMOUNT, WHICH I THINK WAS ROUGHLY A LITTLE OVER 280,000 IF I REMEMBER CORRECTLY. >> YES. >> DO WE HAVE A SENSE AS TO ENTITIES WE MIGHT HAVE OR BUSINESSES IN THE CITY THAT ARE IN ARREARS , THAT OWE US AND WE NEED TO COLLECT FROM ? I AM JUST CURIOUS. DO WE HAVE A SENSE AS TO WHAT THAT FIGURE LOOKS LIKE , IF THERE IS ONE? IN TERMS OF SALES TAX REPORTING QUICK YES. THAT IS ALWAYS SOMETHING THAT OCCURS AND WE SEE THAT IN THE REPORTS THAT WE GET FROM HDL . THERE IS A BALANCE SOMETIMES , I CATCH UP WHEN SOMEBODY MIGHT HAVE UNDERREPORTED AND NOW, THEY OWE MONEY AND IT BECOMES A ONE TIME PAYMENT , A PRETTY NICE CHUNK. THAT IS NOT WHAT WE EXPECT EVERY QUARTER. ON THE FLIPSIDE, THERE ARE ALSO SOME WHERE THEY SAY, THIS SOMETIMES MAY HAVE BEEN REPORTED AS A SALE IN MARTINEZ THAT THE CELL ACTUALLY OCCURRED SOMEWHERE ELSE. IN THOSE SCENARIOS, THEY DO A CORRECTION IN FUTURE QUARTERLY CYCLES. WE SEEM TO HAVE SOME OF THAT GOING ON BOTH WAYS TO THE REPORTING. WITH THE STATE OR EQUALIZATION , WHO WANTS THEIR MONEY, TOO. WITH HDL AND COMPANIES LIKE THAT TRYING TO LOCATE THOSE WHO ARE NOT PAYING OR MAKE SURE THE BOOKS ARE IN ORDER. LIKEWISE , WITH BUSINESS LICENSES. SOMETIMES, THERE IS A LOT THAT CAN BE DONE TO SURVEY THE BUSINESSES AND MAKE SURE EVERYBODY DOES HAVE A BUSINESS LICENSE FOR OPERATING IN THE CITY. >> I WOULD JUST NOTE THAT ONE OF THE THINGS THAT MYSELF, JUNE AND JILL HAVE BEEN LOOKING AT IS BUSINESS LICENSE DELINQUENCY. IT HAS BEEN SOMETHING SINCE THE PANDEMIC , AS YOU ARE AWARE. WE KIND OF, HELD OFF ON COMPLIANCE AND RENEWALS AT ONE POINT AND WE DID PICK UP RENEWALS AND COMPLIANCE. ONE OF THE THINGS WE ARE NOT DOING IS PROACTIVELY SEARCHING THE DATABASES. THAT IS ONE LIGHT SWITCH WE CAN TURN ON TO MAKE SURE WE ARE CAPTURING ALL BUSINESSES IN TOWN. THAT IS ONE OF THOSE POTENTIAL REVENUE AREAS WE CAN EXPLORE IN THE FUTURE. CERTAINLY , IT IS A TOUCHY SUBJECT, AS WELL BECAUSE THERE ARE A LOT OF BUSINESSES THAT WE WOULD HAVE TO BRING INTO COMPLIANCE IF WE DID START TO PROACTIVELY ADDRESS THAT. >> THANK YOU, LAUREN FOR THAT. I APPRECIATE IT. TURNING TO THE STAFF REPORT, ITSELF , ON PAGE 2 IT WAS MENTIONED THAT , WITH THE DEPLETION OF THE ARPA FUNDING THERE IS A LIST HERE OF WHAT WILL NOT BE FUNDED FOR 24-25. ONE OF THEM IS THE FIREWORKS DISPLAY. CAN YOU REMIND ME , BALLPARK HOW MUCH IS THAT AMOUNT? IT IS ABOUT $50,000. IT KEEPS GOING UP EVERY YEAR. WE ESTIMATED AROUND $50,000. THAT IS MINUS POLICE OVERTIME. >> OKAY. IT WOULD REALLY BE INCUMBENT IF WE MOVE FORWARD WITH THAT TO RALLY PRIVATE DONATIONS TO HELP COVER THAT. >> SPONSORSHIP PACKAGE PICK >> THAT IS RIGHT. SO, WE HAVE A LEAD OF A YEAR TO TRY TO DO THAT. >> DO FLARES COUNT AS FIREWORKS? >> FUNNY. IT ALSO SAYS PARK DESIGN AND CONSTRUCTION FOR FACILITIES NOT CURRENTLY BUDGETED WITHIN THE CIP. JUST TO CLARIFY, THAT WOULD NOT IMPACT THE WORK WE ALREADY HAVE IN THE PIPELINE FOR BOTH PICKLEBALL AND FINE METAL COURT , RIGHT QUICK >> YES. >> THANK YOU. SO THEN , WHAT DOES THAT LEAVE ON THE TABLE, IF ANY? WHAT IS THAT REFERENCING? WHAT I WOULD SAY IS, THE THINGS THAT STICK OUT TO ME IN THIS PARTICULAR LIST, ONE WOULD BE THE SUPPLEMENTAL FUNDING FOR THE CHAMBER AND DOWNTOWN MARTINEZ AND COMPANY. I DO WANT TO CALL THAT OUT AS THE LAST TWO YEARS WE PROVIDED IT AND I THINK THERE IS REASONABLY, AN EXPECTATION WE MIGHT DO IT AGAIN. WE WERE ONLY ABLE TO DO THAT BECAUSE OF THIS EXTRA FUNDING. ALL OF THE OTHER THINGS YOU MENTIONED HERE, LIKE PARK PROJECTS AND BUILDING IMPROVEMENTS, AGAIN WE WERE ABLE TO DO THEM BECAUSE OF THE AVAILABILITY OF ARPA. IT IS JUST TO SAY, GOING FORWARD , WE WERE THANKFUL TO BE ABLE TO DO THESE GENERATIONAL PROJECTS, BUT IF SOMETHING COMES UP IN THE NEXT FISCAL YEAR OR TWO, IT WILL BE MUCH MORE DIFFICULT TO FIND FUNDING , UNLESS IT IS A GRANT. >> I THINK WE WERE UNDER THE IMPRESSION WE WERE PRETTY CLEAR WITH BOTH ORGANIZATIONS THAT THIS IS NOT A GUARANTEED SOURCE WHERE IT WILL BE CONTINUED INDEFINITELY. >> RIGHT. >> I DON'T THINK THAT SHOULD COME AS A SURPRISE. BUT, AT THE SAME TIME I WANT TO TRY TO CONTINUE TO FIND WAYS TO BE HELPFUL WHERE WE CAN WITHIN THE RESOURCES WE HAVE AVAILABLE TO US. >> BEFORE YOU NAVIGATE AWAY , CAN I FOLLOW-UP? YOU WERE TALKING ABOUT THE PARK DESIGN AND CONSTRUCTION. THIS BULLET MEANS THAT WE ARE, IF ANOTHER HIDDEN VALLEY PARK WERE TO COME UP WE WOULDN'T BE ABLE TO COME UP WITH IT. IF ANOTHER CITY PARK CAME UP WE WOULDN'T BE ABLE TO FUND IT. NOT THAT WE HAVE OUTSTANDING PARK PROJECTS THAT WE HAVE CROSSED OFF THE LIST. THAT IS RIGHT, CORRECT QUICK >> YES. >> THANK YOU , MADAM MAYER FOR THAT. >> I HAVE ONE MORE THING. I AM SORRY TO INTERRUPT. I DID MISS THIS IN MY PRESENTATION. IT LENDS ITSELF TO THIS. THE OTHER THING THAT IS UNPLANNED AT THIS MOMENT IS THE EXTENSION IF WE DO ANOTHER ONE WITH THE STURGEON'S. I DON'T HAVE A PROPOSED BUDGET FOR YOU TODAY FOR THAT. AS YOU KNOW, THAT WOULD START NEXT FISCAL YEAR AND WE WOULD START NEGOTIATIONS FOR THAT BUT HE SOON AFTER THIS SEASON ENDS . THAT IS ONE OF THOSE AREAS THAT AGAIN, IS UNPLANNED, AND BUDGET AND THE REASON FOR THAT IS BECAUSE WHERE WE STARTED THREE YEARS AGO, EVERY YEAR THE ASKS HAVE INCREASED. IT WENT FROM PRESERVING --PROVIDING A ZOOM FEED TO PRETTY PROFESSIONAL MEDIA. THOSE HAVE COSTS ASSOCIATED WITH THEM. SO, THERE IS THAT AND NUMEROUS OTHER REQUESTS. WE DID GET A REQUEST THIS YEAR TO PROVIDE A CITY VEHICLE TO BE ABLE TO TRANSPORT PLAYERS, WHICH WE DECLINED. THESE SORTS OF THINGS COME UP AND I WOULD IMAGINE, DURING NEGOTIATIONS THAT THE STURGEON'S WILL HAVE A BUDGET ASKED. I DO WANT TO NOTE IT IS NOT INCLUDED IN THIS BUDGET BECAUSE WE DON'T KNOW WHAT THAT IS. I APPRECIATE YOU LETTING US KNOW. ONE LAST QUESTION, IT IS BUDGET CITY UP IN SACRAMENTO. THE MAYOR JUST ISSUED HIS REVISED BUDGET EARLIER THIS MONTH. NOW, THE LEGISLATURE AND ADMINISTRATION ARE IN THE MIDST OF NEGOTIATING A NEW STATE BUDGET , WHICH HAS TO BE PUT INTO PLACE BY THE END OF JUNE. SO , MY QUESTION IS, I KNOW THE GOVERNOR DID ALLUDE TO THE FACT THAT THERE WILL BE CUTS MADE. DO WE HAVE A SENSE --ARE WE KEEPING TABS AS TO WHAT THE POTENTIAL RAMIFICATIONS OF THOSE CUTS MIGHT BE AS IT PERTAINS TO MUNICIPALITIES , SUCH AS HOURS? WE HAVE DIFFERENT POTS OF MONEY WE RELY ON FROM THE STATE, I BELIEVE. ARE ANY OF THOSE IN JEOPARDY OR AT RISK OF BEING SLASHED WITH THIS UPCOMING BUDGET? IF SO, HOW MIGHT THAT IMPACT OUR FISCAL OUTLOOK? >> I THINK THE OUTLAY FROM THE STATE THAT ARE BEING REDUCED MIGHT IMPACT US IN TERMS OF OUR RELATIONSHIP WITH THE COUNTY, FOR INSTANCE AND THE AVAILABILITY OF FUNDING THEY HAVE . AND, SOME OF THE MONIES THEY GET FROM THE STATE THAT THEY, IN TURN PROVIDE RESOURCES TO HELP US IN MARTINEZ. THAT IS ONE EXAMPLE OF HOW IT WORKS. SOMETIMES, IT OCCURS IN A MORE GRANULAR FASHION. ONE EXAMPLE IS THE DEPARTMENT OF WATER RESOURCES. IT HAS A MONITORING STATION AT THE WEST END OF THE FISHING PIER. THEY ARE WORKING WITH CITY STAFF TO CONTRIBUTE AND RIGHTFULLY SO , TO THE RENOVATION OF THAT PEER. THEY HAD MENTIONED THAT THEY DO HAVE SOME LIMITATIONS BECAUSE OF THE CHALLENGES IN SACRAMENTO, BUT THEY DO HAVE SOME FUNDING THEY WILL CONTRIBUTE TO THE PROJECT AND WE ARE WORKING OUT THE DETAILS NOW. THOSE OF THE KINDS OF THINGS WHERE THERE IS AN IMPACT. MAYBE, TWO YEARS AGO THEY WOULD'VE BEEN ABLE TO OFFER MORE THAN WHAT THEY ARE TELLING US NOW. BUT, IT IS NOT INSIGNIFICANT. THOSE ARE JUST SOME OF THE EXAMPLES. AS FAR AS ANY CONCERN ABOUT THE CITY HAVING ANY OF ITSELF TAX MONIES DIVERTED, LIKE WAS DONE YEARS AGO WE ARE NOT IN THAT SCENARIO. ANYWAY, THERE WAS SUBJECT IT --SUBSEQUENT LEGISLATION PASSED TO HELP CITIES WITH A STRONG ADVOCACY OF THE CALIFORNIA LEAGUE OF CITIES. THOSE RECESSIONARY PROTECTIONS WERE PUT IN PLACE AND THEY ARE STILL INTACT TO HELP US. WE HAVEN'T HEARD ANY SPECIFICS ABOUT HOW WE MIGHT BE HURT BY THE SITUATIONS OCCURRING TODAY. >> THANK YOU. I THINK THAT IS PRETTY MUCH , ALL I HAD FOR NOW. I WILL PASS IT OVER . >> THANK YOU, LAUREN FOR THE PRESENTATION AND TO JUNE AND CHRISTINA FOR YOUR CONTRIBUTIONS AND TO ALL THE DEPARTMENT HEADS FOR THE TIME AND EFFORT IN CREATING THIS BUDGET. THANK YOU ALL. AND, MIKE , OF COURSE. THANK YOU FOR ANSWERING MY QUESTIONS ALONG THE WAY. I DID HAVE A QUESTION SIMILAR TO MAYOR ZORN ABOUT THE PARKING BECAUSE I ANTICIPATE WE WILL HAVE REVENUE WITH PARKING. BUT, THAT WILL BE IN THE FUTURE. SO, THANK YOU FOR THAT. BREANNE AND I HEADED OPPORTUNITY TO GET A SNEAK PEAK AT THIS AT THE SUBCOMMITTEE AND EVERYTHING LOOKED GREAT IN. IT LOOKS GREAT NOW. I JUST WANT TO CALL OUT A COUPLE THINGS HIGHLIGHTED IN YOUR PRESENTATION WHICH WILL HELP US WITH SUSTAINABILITY. THE INVESTMENT POLICY THAT JUNE BROUGHT FORWARD IS HELPING US TO SAVE MONEY. OR, TO HANG ON TO OUR MONEY AND HAVE MORE FUNDS AVAILABLE. THAT IS A GREAT BENEFIT THAT WE HAVE GAINED THROUGH THAT INVESTMENT POLICY. WE WANT TO KEEP THE REVENUES WE HAVE COMING IN AND ALSO, PROTECT THE MONEY THAT WE HAVE NOW . IF WE WANT IT TO GROW FOR US, WE WANTED TO GROW IN THE BEST WAY AND IN THE SAFEST WAY. THAT IS ALWAYS GOOD. AND THE FISCAL SUSTAINABILITY PLAN, IN ORDER TO MAKE CERTAIN THAT WE ARE NOT IN THE HEADLINES LIKE OTHER CITY THAT HAVE FINANCIAL CHALLENGES, WE NEED TO LOOK PROACTIVELY AND LOOK AHEAD AT WAYS IN WHICH WE CAN CONTINUALLY LOOK AT OUR FINANCES AND FIND WAYS TO HAVE MORE BUSINESS AND HAVE MORE INCOME AND MANAGE OUR EXPENSES. I JUST WANT TO THANK YOU ALL FOR LOOKING AT THAT AND TAKING A PROACTIVE APPROACH IN ORDER TO LOOK INTO THOSE THINGS THAT WILL MAKE THE DIFFERENCE. MAYBE, NOT FOR TODAY BUT WILL MAKE THE DIFFERENCE IN TWO, THREE, FIVE YEARS BECAUSE YOU ARE LOOKING FORWARD. I APPRECIATE ALL THE WORK YOU HAVE DONE AND WILL CONTINUE TO DO TO KEEP MARTINEZ ON SOLID GROUND. I APPRECIATE IT. THANK YOU. LAUREN, THANK YOU FOR YOUR REPORT . I UNDERSTAND THIS IS NOT A DOOM AND GLOOM AND THIS IS GREAT . A LOT OF THIS IS GOOD NEWS COMPARATIVE TO THE OTHER CITIES AROUND US. I DO UNDERSTAND WE NEED TO TIGHTEN OUR BELT . WE REALLY DO. I JUST HAD A QUESTION ABOUT PAGE 6 OF THE STAFF REPORT UNDER POLICE. I UNDERSTAND THE CESAR CHAVEZ AND JUNETEENTH EXPENDITURES, BUT IF YOU GO DOWN TO THE CORE OUTREACH AND EQUIPMENT UPGRADES, YOU ARE SAYING THEY WERE ABSORBED. WHAT ARE YOU TALKING ABOUT? >> I AM ACTUALLY , GOING TO TURN IT OVER TO THE POLICE CHIEF. JUST TO CLARIFY THE QUESTION REGARDING TO WHAT IT MEANS BY BEING ABSORBED . >> NO , WHAT I AM INTERESTED IS YOU HAVE THE CORE OUTREACH AND EQUIPMENT UPGRADES. WHEN THEY TALK ABOUT EQUIPMENT UPGRADES, WHAT ARE WE REFERRING TO? A VARIETY OF DIFFERENT SYSTEMS THAT ARE IN THE POLICE DEPARTMENT. FOR EXAMPLE, LIKE OUR EVIDENCE.COM FOR THE BODY WORN CAMERAS. THERE IS A CHANGE IN FUNCTIONALITY SO WE HAVE TO INCREASE THE LICENSING. I THINK JUST IN THE I.T. WORLD THEY CONTINUE TO INCREASE PRICES FOR LICENSING. OR, THEY WILL DISABLE FUNCTIONS. IF YOU HAVE A BASIC LICENSE VERSUS A PRO LICENSE. IN OUR CASE, IT IS UNIQUE BECAUSE OF THE WAY THE BUDGETING WAS DONE IN SOME YEARS PAST THERE WERE LINE ITEMS WE NEVER USED BECAUSE IT WAS BASICALLY, ONE-TIME ADDITIONS THAT WERE CARRIED OVER AS REGULAR EXPENSES. THAT IS HOW WE ARE ABLE TO ABSORB WITHOUT ACTUALLY, CUTTING A SERVICE OR SOMETHING ALONG THOSE LINES. >> VERY GOOD. >> SO, IN TERMS OF TRAINING , SUPPORT OF OUR SYSTEMS, THE EQUIPMENT THEY NEED AND ALL THAT STUFF , IT IS ALL UNCHANGED. THERE WAS NO CUT TO THOSE THINGS WE NEED TO DELIVER OUR SERVICES. >> VERY GOOD. JUST TO BE CLEAR, THERE IS NO HIRING FREEZE AT THE PD AND YOU ARE STILL AGGRESSIVELY LOOKING FORWARD TO FILLING YOUR SLOTS? YES, ABSOLUTELY. IN PARTICULAR, IN THE AREAS OF HIGH RISK CONCERN LIKE , TRAINING. HOUR TRAINING BUDGET REMAINS GOOD AND, AS THE ASSISTANT CITY MANAGER MENTIONED , ONE OF THE REASONS FOR INCREASING THE OVERTIME IS THAT IN THE PAST THE PD HAD SUCH SIGNIFICANT VACANCY RATE THAT THE OVERTIME BUDGET , IF I'M OPTIMISTIC WE WILL CONTINUE TO FILL POSITIONS THIS NEXT YEAR. IF WE DIDN'T INCREASE THE OVERTIME BUDGET WE COULD HAVE BEEN IN A SITUATION WHERE WE SUDDENLY , DON'T HAVE THE SALARY SAVINGS AND THERE IS NOT ENOUGH OVERTIME, SO WE WOULD HAVE TO CUT NONESSENTIAL OVERTIME. SO, THIS BUDGET RECOMMENDATION MAINTAINS THE STATUS QUO THAT WE HAVE, TODAY. NO PHRASINGS OR UNDERFUNDING OF POSITIONS. THERE ARE NO GIMMICKS IN IT. >> EXCELLENT. I WOULD LOVE TO SEE SOME MORE BILLBOARD ADS ABOUT THOSE ROUTES NEEDED. >> I WILL NOTE , TOO. I WAS JUST TELLING THE POLICE CHIEF EARLIER TONIGHT, MYSELF AND JUNE WILL BE PRESENTING THIS BUDGET TO THE UNIONS. SO, THIS IS JUST SOMETHING WE WILL START DOING ON A MORE REGULAR BASIS, WHERE WE SIT DOWN WITH THEM, NOT FOR ANY NEGOTIATION PURPOSES, BUT TO BE TRANSPARENT AND BRING THEM ALONG ON THE PHYSICAL JOURNEY. WE WILL DO THIS PRESENTATION FOR THEM. SO THERE IS NO INFORMATION MISSING ABOUT WHERE WE ARE AT WITH THINGS AND THAT OUR PRIORITY REMAINS HIRING IN THOSE AREAS THAT ARE STILL VACANT. THAT IS SOMETHING WE WILL BE FOLLOWING UP WITH VERY SOON. >> VERY GOOD. THANK YOU. >> GOOD QUESTIONS . I WANT TO TO GO TO THE SLIDES WITH PENCILS, PENS AND ERASERS LINE ITEM. I WANT TO SEE HOW MUCH YOU ARE SPENDING ON THOSE. YOU DON'T HAVE THAT. OKAY. THANK YOU CHRISTINA, JUNE, LAUREN , AND MICHAEL. AND THE WHOLE STAFF, FOR PUTTING TOGETHER THIS BUDGET. IT IS ALWAYS A CHORE AND I KNOW IT IS A THANKLESS JOB BECAUSE WHEN TIMES GET TOUGH EVERYBODY'S DEPARTMENT IS AT RISK AND IT MAKES US NERVOUS . IT IS NOT A DOOM AND GLOOM SITUATION. WE HAVE BEEN ACCUSED BEFORE OF HAVING A DEPRESSION ERA MENTALITY. SOMETIMES, YOU HAVE TO HAVE THAT TO MOVE FORWARD. WE ARE VERY LUCKY THAT THE SAVINGS WE HAVE BUILT UP OVER THE YEARS ARE SERVING US WELL. MARTINEZ HAS A SAVING GRACE AND IT IS LIKE REAL ESTATE VALUES. WE DON'T MARKET UP AND THEREFORE, WE DON'T CRASH. WE JUST WRITE IT SMOOTHLY. WE DON'T HAVE PROBLEMS OTHER CITIES DO . WE ARE ON THE BEDROCK THAT HAS A FEW CURVES AND DIPS AND HILLS AND THEY ARE MANAGEABLE. WE ARE DOING A GOOD JOB. LET ME GO UP THE LIST. THE INVESTMENT POLICY AND MAYBE , I MISSED IT. I KNOW WE HAVE CHANGED IT. ARE WE STILL DOING LADDERING AND OTHER SHORT-TERM OR LONG-TERM INVESTMENTS? PAYMENT WE ALREADY MADE. WE ARE INVESTING IN CALIFORNIA CLASS . THAT IS OUR FIRST STEP. LAST WEEK I CHECKED AND WE WERE MAKING ABOUT 4.6% . THE CALIFORNIA CLASS MAKES 5.9% AND THAT IS WHERE THE MAJORITY OF THE FUNDS ARE PART RIGHT NOW. JUST FOR INFORMATION , THE NEXT STEPS IS FOR THE CITY TO ISSUE RP FOR AN INVESTMENT ADVISER. THAT WILL ALLOW US TO MOVE OUR INVESTMENTS TO LONG-TERM OR MIDTERM PORTFOLIOS. THAT IS COMING. LAFE USED TO BE THE ONLY GAME IN TOWN WE DID FOR YEARS. I KNOW THE CHOICES ARE GREATER NOW. A ONE POINT DIFFERENCE, CONGRATULATIONS. THAT IS A GOOD MOVE. >> YES. OUR WHOLE CASH FLOW WILL MAKE A SIGNIFICANT DIFFERENCE. >> REMEMBER, THAT WAS ON THE CONSENT CALENDAR. IT WASN'T A DISCUSSION ITEM. I JUST WANTED YOU TO KNOW IT WAS ON THE CONSENT. >> I WAS BUSY WORRYING ABOUT PENCILS AND ERASERS AND HOW MANY WE ARE USING. BUSINESS LICENSES , AS SOMEBODY WHO PAYS BUSINESS LICENSES , I WOULD HIGHLY RECOMMEND YES , YOU FLAG THE ACCOUNTS --THE PANDEMIC IS OVER. YOU NOTIFY THE PEOPLE IN ARREARS . IT DOESN'T SEEM UNKIND AND BUSINESS CERTAINTY IS MORE PREFERABLE THAN UNCERTAINTY. YOU HAVE TO GO BACK AND START SHAKING THAT TIN CUP . EVERYBODY HAS GOTTEN INTO THE HABIT --NOT EVERYBODY, BUT A SIGNIFICANT NUMBER OF PEOPLE HAVE GOTTEN INTO THE HABIT OF NOT PAYING IT OR ARE EVEN AWARE THEY ARE NOT PAYING IT. I PAY $400 OR SOMETHING PER YEAR. I HAVE BEEN FOR THREE OR FOUR YEARS. IF YOU DON'T PAY IT YOU GET A FIVE EURO BILL AND IT HURTS. IT IS ONE THING IF THEY KNOW AND DON'T PAY IT, THEY TAKE THE CONSEQUENCES. WE HAVE A FIDUCIARY DUTY TO TELL THEM THEY OWE IT. WHAT YOU DO WITH COLLECTIONS IS ANOTHER SUBJECT. I WOULD HEARTILY RECOMMEND THAT. I WILL SAVE THE WEBSITE FOR OFF-LINE WITH THE STAFF. SIDEWALKS BACK ON SLIDE 10 , CAN WE SEE SLIDE 10? >> I THINK IT WAS ONE OF THE LAST ONES. >> IT WAS THE COUNCIL WISH LIST. >> OKAY. >> I THINK IT WAS SLIDE 10. >> YES. I HAVE THE CLICKER IF THAT HELPS. >> OKAY. ON THAT LIST -- --THIS PARK? >> NO , IT WAS THE CLEANING OF THE SIDEWALKS. THERE WE GO. IT IS SLIDE 10. OKAY. DO WE MAKE COMMENTS ON THIS, OR IS THAT GOING TO BE SOMETHING -- >>--WE ARE HAPPY TO TAKE FEEDBACK TONIGHT AND WE CAN WRAP IT INTO A RESOLUTION. >> THE CLEANING OF THE SIDEWALKS. >> CAN WE CLARIFY IS IT CLEANING OR THE SIDEWALK REPAIR PROJECT? THOSE ARE FUNDED THROUGH THE GENERAL FUND AND ONE IS A CIP PROJECT. THIS ISN'T REFERENCING DOWNTOWN CLEANUPS , THIS LIST HERE. >> OKAY , MAYBE IT WAS THE NEXT SLIDE. LET'S KEEP IT HERE FOR A MINUTE. WE WILL SPEAK ABOUT THE DOWNTOWN POWER WASHING OF SIDEWALKS. AS YOU KNOW, I HAVE ALWAYS RAILED ABOUT THE BRICKS ON THE SIDEWALKS. WE SPENT SO MUCH MONEY AND EFFORT AND ALL THIS ENERGY ON THOSE AND YET, AGAIN WE HAVE SIDEWALKS THAT IS NOT INVITING. IT MAKES IT DIFFICULT FOR THE RETAIL WORLD. IT DIMINISHES CURB APPEAL AND THAT MEANS EVERYTHING. WHEN YOU DO POWER WASH IT AND IT IS A PAIN BECAUSE YOU HAVE TO ADHERE TO THE CLEAN WATER GUIDELINES AND BLOCK OFF THE DRAINS. IF WE ARE GOING TO GO THROUGH THAT, JOE MAYBE, AFTER IT IS CLEAN MAYBE THEY GET GROUND DOWN A LITTLE BIT OR SCRUBBED A LITTLE BIT AND THEN POWER WASHED , THEN YOU CAN CALL THEM. OTHER CITIES COAT THERE SIDEWALKS . YOU CAN PROBABLY COAT THEM AND REDUCE THE NEED TO CLEAN THEM AS MUCH AND THEY WOULD LOOK A LOT BETTER AND THE APPLICATION COSTS ARE SIMILAR. THEY ARE NOT CHEAP, BUT IT WILL SAVE TIME. THAT IS SOMETHING I WOULD THROW IN. MAYBE, WE COULD DO IT THROUGH THE PLATFORM RENTALS PEOPLE PAY. DOWNTOWN LIGHTING , I HAVE TALKED ABOUT THAT BEFORE AND WE SHOULD INCREASE THE LIGHTS OFF AND ON MAIN STREET. IT ISN'T AS INVITING AS IT COULD BE. I ALREADY TALKED ABOUT THE INTEREST INCOME. THE ENTRYWAY AND MEETING ENHANCEMENTS , ESPECIALLY COMING OFF 680. WE HAVE PROBABLY , ONE OF THE DIRTIEST SIGNS IN TOWN THAT SAYS COME IN DOWNTOWN MARTINEZ. IT IS PROBABLY ONE OF THE DIRTIEST SIGNS IN TOWN. >> CAN I INTERRUPT QUICKLY? I JUST WANT TO CLARIFY. THIS IS THE RECOMMENDATION FOR THE SHIRT --SHORT-TERM HIGH VISIBILITY LENS. WE INCLUDED THE CITY COUNCIL WORKSHOP FROM FEBRUARY AND A LOT OF THE THINGS YOU MENTIONED ARE UNDER THE CATEGORY OF 2024 VISIBLE WINS UNDERWAY. THIS LIST IS WHAT WE CAN SPEND THE REMAINING ARPA MONEY ON. THE VISIBLE WINS UNDERWAY INCLUDE REFRESHED CITIES AND FREEWAY SIGNS. NEW BIKE RACKS AND NEW DOWNTOWN SIGNAGE AND ENHANCE SIDEWALK REPAIR AND ENHANCE LANDSCAPE IN DOWNTOWN PLAZA, DOWNTOWN POWER WASHING AND ENHANCE PARK PROJECT SIGNAGE . ALL OF THOSE, I CLARIFIED TODAY WITH STAFF ARE ALREADY FUNDED. WE DON'T EVEN HAVE TO SAY, YES PLEASE. YOU ARE TALKING TO THIS AS IF THEY WERE NEW IDEAS. >> I JUST WANTED TO REITERATE THE IMPORTANCE OF THESE BECAUSE WE GET TO THE BUDGET APPROVAL AND ABOUT A MONTH. I AM TALKING ABOUT THE FINAL BUDGET. SHOULD WE TALK ABOUT IT TONIGHT VERSUS A MONTH FROM NOW. I DON'T KNOW WHEN WE TALK ABOUT IT AGAIN. THE THINGS I JUST LISTED ARE NOT ON THIS LIGHT, BUT YOU UNDERSTAND THAT, RIGHT? >> YES. I WILL MOVE ON TO THE POTHOLES. AND USING POT EUPHEMISTICALLY, HOW FAR DOWN IS PART ON SALES TAX? >> IT IS ROUGHLY $270,000 SHORT . THIS COMMUNITY BENEFIT PAYMENT, AS YOU KNOW FAR SURPASSED ANYBODY'S WILDEST EXPECTATIONS. AND IN THIS BUDGET WE JUST PROJECTED IT TO PLATEAU. UNFORTUNATELY, IT WENT DOWN. SO , IT IS SOMEWHERE IN THE 1.3 TO 1.5 MILLION VERSUS 1.6 MILLION THAT WAS IN THE BUDGET. IT SHOWS UP HERE IN OTHER REVENUE AT THE BOTTOM. IT SAYS DECREASE OF 270. SO , I DON'T BELIEVE THAT IS EXPECTED TO DECLINE FURTHER FROM THERE. IT IS STARTING TO STABILIZE A LITTLE BIT. WE LOOK AT IT ON A QUARTER OVER QUARTER AND YEAR-OVER-YEAR BASIS. WE LOOK FOR TRENDS AND TALK WITH THE OPERATORS. WE WILL SEE IF THERE IS ANY FURTHER ADJUSTMENT. WE DO EXPECT THAT AT SOME POINT IT WILL LEVEL OFF AND HOPEFULLY, GO BACK UP . WE TALKED ABOUT THIS BEFORE , I BELIEVE THAT IN TERMS OF THE INDUSTRY, MORE COMPETITION . IT IS A VERY COMPETITIVE CLIMATE AND IT IS A VERY TOUGH BUSINESS FOR ALL OF THEM. WE JUST HAVE TO SEE WHAT THAT LOOKS LIKE. UNFORTUNATELY, THIS YEAR IT WENT DOWN QUITE SIGNIFICANTLY AND WE DIDN'T PROJECT IT TO GO UP CONTINUOUSLY. WE PROJECTED IT TO LEVEL OFF. >> IN OTHER CITIES , I HEAR THEY ARE RENEGOTIATING THESE COMMUNITY BENEFIT AGREEMENTS . >> WE HAVE NOT HEARD THAT. >> OKAY, WE WON'T TALK ABOUT THAT. SLIDE 13 , I HAVE ONE LAST QUESTION. THAT 532,000 DEBT SERVICE TOWARDS THE BOTTOM , REFRESH MY MEMORY . WHAT DEBT SERVICE IS THAT? >> THAT WAS SOCIAL SECURITY. THAT WAS THE LAST PAYMENT. IT WAS THE LAST PAYMENT, WHICH WAS IN AUGUST LAST YEAR. >> OKAY. THAT IS IT. THANK YOU. THANK YOU FOR YOUR QUESTIONS. I HAVE ONE QUICK QUESTION BEFORE I OPEN THIS UP TO PUBLIC COMMENT. YOU WERE ASKING ABOUT STATE FUNDING EARLIER. CHIEF, IS MARTINEZ ALERT FREE BECAUSE IT IS PROVIDED BY THE STATE? WITH THAT COME UNDER ONE OF OUR UPCOMING BUDGETS? >> NO, IT IS FREE TO US, BUT IT IS ACTUALLY , PAID FOR BY RESIDENTS WITH PHONE LINES. THAT IS A SENA FEE. WE DON'T ANTICIPATE THAT CHANGING AT ALL. >> GREAT, THANK YOU. WONDERFUL. LET'S OPEN THIS UP TO PUBLIC COMMENT. THANK YOU FOR YOUR PATIENCE. KHRISTON IS THE ONLY MEMBER OF THE PUBLIC HERE. WHEN I READ THE AGENDA, THESE ARE THE POINTS THAT CAME TO ME. IF I READ IT WRONG, SORRY. I WANT TO SAY , FORMER EMPLOYEES AND FORMER ELECTED PEOPLE HAVE RELAYED TO ME PERSONALLY, THAT AGENDA IS CLOSED SESSIONS WHEN WE HAD ANOTHER MAYOR AND OTHER COUNCIL , IN THOSE CLOSED SESSIONS THAT WERE AGENDA ICED, IT WOULD SPUR THE POLICE CHIEFS, ESPECIALLY THE AMBITIOUS WANTS TO COME AFTER INNOCENT OPPONENTS . I COULD WRITE A BOOK ABOUT IT, AS GOOD OTHERS. SO MANY CITY RESOURCES HAVE BEEN MISUSED FOR WRONGFUL , IDIOSYNCRATIC , AND CIVIL PURPOSES TO FURTHER CERTAIN WEALTHY PEOPLE'S AGENDAS AND TO SUPPRESS DEMOCRACY AND PEOPLE. SO , IN THE FUTURE I HOPE THAT WE ARE NEVER GIVING OUR CITY ATTORNEY OR THE PUBLIC WORKS DEPARTMENT GUY OR WHOMEVER TO OUR BUDDIES WHO HAVE MONEY AND THAT WE ARE DOING THE RIGHT THING. I WOULD JUST SAY, YOU WANT TO SAVE MONEY, THERE YOU GO. SECONDLY , HAVING READ THE MARTINEZ'S BUSINESS PLAN , THEY SAID THEY COULD MAKE $20,000 PER YEAR IN CANDY CELLS , JUST LIKE PHOENICIA. WHY HAVEN'T THEY BEEN DOING THAT ALL ALONG? THE ARCHIVES ARE NEGLECTED. THEY HAVE A MASSIVE RESERVE IF THEY ARE NOT GETTING THE TRAIN STATION. IT WAS GIVEN TO THEM BY THE PUBLIC. LASTLY , I WOULD LIKE TO TALK ABOUT MARTINEZ MUSIC MAFIA . QUITE AN INSULAR GROUP AND THEY ARE TRAPPED, MY OPINION . MUSIC CAN MAKE A LOT OF MONEY WHEN IT IS GOOD. MUSIC MAFIA AND OTHER ORGANIZATIONS PASS OFF THE SAME POT OF MONEY TO EACH OTHER. THEY ARE ALWAYS REWARDING EACH OTHER. IT IS INTERESTING. I FEEL LIKE, IF MAFIA FIND THEIR OWN REVENUE STREAMS IT WOULD FORCE THEM INTO INCLUSIVITY AND THE 21ST-CENTURY. ON THAT NOTE , I FOUND $400,000 TO FIX THE POST OFFICE. IT IS A HIGHLY HISTORIC BUILDING. I DON'T KNOW IF YOU REMEMBER WHAT IT USED TO LOOK LIKE. I DID THAT BY ONCE A WEEK FOR TWO YEARS CALLING WHOEVER I HAD TO TO GET IT ON THE CAPITAL IMPROVEMENT PLAN, AND THAT HAPPENED. I FEEL LIKE I MIGHT BE ABLE TO FIND THE MONEY TO FINISH THE DAY FUELING OF THE OLIVE GROVE IF THE CITY WOULD ALLOW THAT TO HAPPEN . SO, I WILL LEAVE THAT THERE IN MAYBE, YOU CAN TALK TO ME LATER BECAUSE I ONLY HAVE 19 SECONDS. THANK YOU. >> I HOPE YOU CAN HELP. THANK YOU. ARE THERE ANY MEMBERS OF THE PUBLIC IN THE VIRTUAL AUDIENCE THAT WOULD LIKE TO SPEAK TODAY? IF YOU WOULD LIKE TO COMMENT ON THIS ITEM TONIGHT, PLEASE USE THE RAISED HAND FEATURE. I HAVE ONE HAND. CRAIG , I WILL ASK YOU TO UNMUTE. GOOD EVENING CITY COUNCIL . THANK YOU FOR THIS PRESENTATION. I DIDN'T CATCH ALL OF IT, SO FORGIVE ME IF THERE ARE A COUPLE POINTS I RAISED THAT I MISSED IN THE DISCUSSION. ONE THING I WANTED TO START OFF WITH AND ZERO IN ON IS, I UNDERSTAND THE SENTIMENT THAT IT IS NOT ALL DOOM AND GLOOM AND THINGS COULD BE WORSE. THAT IS TRUE. BUT, THE FACT OF THE MATTER IS YOU DO HAVE A STRUCTURAL BUDGET DEFICIT WITH EXPENSES OUT PACING REVENUES . THERE IS NO END IN SIGHT TO THAT DYNAMIC AND REALITY. AS LONG AS YOU ARE DEALING WITH SYSTEMIC BUDGET CRISIS, I AM SORRY, NOT CRISIS BUT BUDGET DEFICIT, YOU WILL CONTINUE TO FACE CHALLENGING CIRCUMSTANCES. I JUST WANT TO POINT OUT THAT IN MY OPINION, THE REASON YOU ARE DEALING WITH SUCH STRUCTURAL BUDGET DEFICIT AND THE SCHOOL DISTRICT IS, AS WELL AND THEY ARE THROUGHOUT THE STATE IS THAT, YOUR EXPENSES ARE BEING PRESSURED BY RISING LABOR COSTS BECAUSE OF COST OF LIVING AND HOUSING COSTS. AND , GIVEN THE TIGHT HOUSING MARKET, OF COURSE YOU HAVE HAD A LOT OF ATTRITION AND YOU HAVE HAD TO HIRE A LOT OF PEOPLE. TO BE ABLE TO HIRE PEOPLE YOU HAVE TO OFFER COMPETITIVE SALARIES AND THAT PUTS PRESSURE ON THE BUDGET. THE REASON THEY DEMAND HIGHER SALARIES IS BECAUSE OF THE COST OF LIVING SITUATION. THE WAY OUT OF THIS SITUATION IS GOING TO ULTIMATELY , DEPEND ON OUR SUCCESS IN BUILDING AFFORDABLE HOUSING IN THE CITY AND GETTING EVERYONE ON BOARD WITH THE URGENCY OF THAT TASK. I WOULD LIKE --IT WAS MENTIONED BY LAUREN ABOUT BRINGING THE BUDGET SITUATION AND THE FACTS TO THE BARGAINING UNIT , YOUR UNIONS BECAUSE IT IS VERY IMPORTANT THEY UNDERSTAND THE SITUATION AND BECOME ENGAGED, AS WELL IN WORKING AND ADVOCATING AND LOBBYING FOR SOLUTIONS ON HOUSING. WE CAN'T CONTINUE TO HAVE A SITUATION WHERE WE ARE IN COLLECTIVE BARGAINING. WE SEE WHAT HAPPENED WITH THE SCHOOL DISTRICT WHERE THEY CAME OUT IN THE OPEN WITH THEIR NEGOTIATIONS AND DRAGGED THE COMMUNITY INTO IT USED FAMILY AND CHILDREN AS PAWNS. AND, THAT DISTORTED THE SITUATION. THEY CAN --CONTINUALLY COMPLAINED ABOUT THE HIGH HOUSING COSTS. THE PRODUCTIVE THING WOULD BE FOR ALL THE BARGAINING UNITS TO UNDERSTAND THAT THEIR QUALITY OF LIFE AND THERE ABILITY TO SUCCEED FINANCIALLY DEPENDS ON HOUSING AND AFFORDABLE HOUSING AND WORKABLE HOUSING FOR WORKERS OF MODERATE INCOMES. I HOPE YOU WILL SHARE THAT WITH THEM IN YOUR DISCUSSIONS. THANK YOU. THANK YOU. I HAVE NO FURTHER HANDS. >> GREAT. THANK YOU TO BOTH OF THE MEMBERS OF THE PUBLIC WHO SPOKE, TODAY. I THINK WE WILL COME BACK TO ANY FINAL COMMENTS. I DID HAVE TWO FOLLOW-UP QUESTIONS THAT WERE SCHEDULE RELATED. THE FIRST ONE WAS REGARDING ARPA. THE RECOMMENDATION IN THE SLIDE DECK WAS WITH RESPECT TO 172,000 AND ALLOCATED AND AS EVERYONE UP YOUR NOSE, WE NEED TO HAVE ALLOCATED ALL OF THE ARPA FUNDING BY THE END OF 2024 AND WE NEED TO SPEND IT BY 2026. WHAT IS YOUR SCHEDULE FOR BRINGING BACK TO US THE ARPA SUMMARY THAT HAS THAT 172,000 ALLOCATED FOR OUR APPROVAL? >> WE WILL BRING IT JUNE 26 WHEN WE BRING BACK THE BUDGET. WE WOULD HAD A --HAVE A RESOLUTION OF THE DISBURSEMENT OF THE REMAINING FUNDS. >> IS YOUR INTENTION FOR IT TO BE A DOLLAR BY DOLLAR ALLOCATION ARE JUST GENERAL CATEGORIES? >> GENERAL CATEGORIES. >> CONSISTENT WITH THAT, THE SCHEDULE FOR THE FIVE-YEAR LOOK AHEAD. I VERY MUCH APPRECIATE THAT BOTH YOU AND JOON HAVE REPEATED THIS TALKING POINT OF NEEDING TO DO A FINANCIAL PROJECTION, WHICH WE HAVEN'T DONE A GREAT JOB OF OVER THE PAST MANY YEARS. WHAT IS YOUR EXPECTATION? WE HAVEN'T SEEN A FIVE-YEAR LOOK AHEAD, SO FAR. >> WE WOULD DO IT IN CONCERT WITH THE UPCOMING BIENNIAL BUDGET. THE BIENNIAL BUDGET RESENTS A GREAT OPPORTUNITY BECAUSE IT IS THE GROUND-FLOOR FOR US. WE CANNOT ONLY TALK ABOUT OUR FISCAL POLICIES AND GIVE THOSE AN EXAMINATION AND EDUCATE THE COMMUNITY AND THE COUNCIL ON WHAT THOSE ARE AND DO OUR LONG-TERM FORECASTING, WHICH WILL BE EXCITING. WE ALSO HAVE A CHANCE TO LOOK AT