Apr 29, 2021 2:00 PM - Redding City Council - Special Meeting - Budget Workshop

>> WE'LL CALL THE SPECIAL MEETING BUDGET WORKSHOP OF THE CITY OF REDDING TO ORDER. AND COULD I HAVE A ROLL CALL. >> COUNCIL MEMBER DACQUISTO. >> PRESENT. >> MS. MEZZANO. >> HERE. >> SCHREDER. >> HERE. >> MS. RESNER IS JOINING US ON TELEPHONE. >> YES, I'M PRESENT. >> PERFECT, THANK YOU. >> ALL RIGHT. OUR FIRST ITEM IS ITEM NUMBER 3. ANYONE IN THE AUDIENCE AND ON THE, OR WATCHING THIS LIVE STREAMED, WE'RE GOING TO HAVE, THERE'S TWO ITEMS. 3A AND 3B AND EACH OF THE ITEMS WE ALLOW FOR PUBLIC COMMENT AND YOU'LL SPEAK OUT A BLUE SPEAKER REQUEST FORM IN THE BACK AND BRING IT TO OUR CITY CLERK AND WHAT WE HAVE IS THE PRESENTATION BY OUR STAFF AND THEN WE MIGHT HAVE QUESTIONS BY COUNCIL MEMBERS AND THEN WE WOULD REQUEST THAT THE PUBLIC COMMENT BE MADE AT THAT TIME. IT COULD BE FOLLOWED BY ADDITIONAL COMMENTS BY THE CITY COUNCIL. >> THIS IS A SPECIAL MEETING AND WE'RE REFERRING TO A BUDGET WORKSHOP AND YOU HAVE TWO ITEMS AS YOU NOTED. AND THE FIRST ONE I'LL SAY WAS SHOEHORN IN AT THE COUNCIL'S REQUEST AT THE LAST MEETING WHERE WE WENT OVER SEVERAL THINGS INCLUDING UNMET NEEDS IN THE CAPITAL MAINTENANCE REALM AND THE COUNCIL HAD ASKED FOR SOME INFORMATION RELATIVE TO FIRE STATION NEEDS. AND SO 3A IS GOING TO BE A PRESENTATION FROM THE FIRE CHIEF AND HE'S GOING GO THROUGH STATION BY STATION. AND IT WILL BE RAPID FIRE. THERE'S A LOT OF SLIDES AND INFORMATION, BUT WE'LL PUSH BUT THAT AND THERE'S NO ACTION ON THAT ITEM. IT'S FOR YOUR INFORMATION. AND IT WILL BE USED AS YOU MOVE INTO ITEM 3B. AND AGAIN, ITEM 3B IS NOT GOING TO BE SIGNIFICANT ACTION, BUT JUST GENERAL DIRECTION AS WE MOVE TO WRAP UP THE FINAL BUDGET. THIS IS THE SECOND OF THREE WORKSHOPS. THE THIRD ONE WILL BE NEXT WEEK WHICH WILL BE MAY THE 6TH AND THAT WILL FOCUS ON ENTERPRISE FUNDS, UTILITIES AND AIRPORT. AFTER THAT, YOU WOULD HAVE SEEN THE BUDGET IN ITS ENTIRETY WITHIN GOING INTO DEEP LEADS AND YOU'LL SEE THE LARGE ITEMS WITHIN THE BUDGET PROCESS. MY RECOMMENDATION IS WE START WITH ITEM 3A AND WE ASK THE FIRE CHIEF TO GIVE A PRESENTATION ON THE FIRE NEEDS. >> I WANT TO CORRECT IT. MAY 8TH IS THE NEXT ONE WHICH IS THURSDAY, IS THAT RIGHT? >> MAY 6TH. >> IS IT MAY 6TH? >> MAY 4TH IS OUR COUNCIL MEETING, NEXT TUESDAY. >> I DID PULL UP APRIL, I'M SORRY. THAT'S WHY. I'M GLAD I SAID THAT. >> IT'S NEVER GOOD TO CORRECT THE VICE MAYOR, SO YOU PUT ME IN AN AWKWARD POSITION. >> I PULLED UP APRIL INSTEAD OF MAY. >> MAY 6TH IS THE UTILITY AND ENTERPRISE FUNDS GENERALLY. WE'LL ASK THE FIRE CHIEF TO COME UP AND PRESENT FIRE STATION NEEDS. CHIEF. >> THANK YOU. CAN YOU HEAR ME OKAY? GREAT. GOOD AFTERNOON, HONORABLE MEMBERS, MEMBERS OF THE COUNCIL. THANKS FOR GIVING ME A FEW MINUTES OF YOUR TIME TODAY AS WE KICKOFF THIS BUDGET WORKSHOP. YOU'VE ASKED THAT I PROVIDE FOR YOU A HIGH LEVEL OVERVIEW OF SOME OF OUR FIRE STATION NEEDS. I'VE BEEN ABLE TO DO THAT FOR YOU. AND AS MIKE BARRY SAID, IT WILL BE QUICK AS WE GO THROUGH THIS, BUT I'LL BE HAPPY TO ANSWER QUESTIONS OR TAKE COMMENTS YOU MAY HAVE AT THE END. ALONG WITH PROVIDING FROM THE SAFETY OF OUR COMMUNITY, AS THE FIRE CHIEF, WE DO THAT IN A COUPLE OF DIFFERENT WAYS THROUGH OUR RESPONSE PLAN AND THROUGH OUR PREVENTION PLANS, BUT JUST AS IMPORTANT AS THE FIRE CHIEF, I HAVE A RESPONSIBILITY TO PROVIDE FROM THE SAFETY AND WELLNESS AND WELL-BEING OF OUR EMPLOYEES. JUST LIKE EVERY OTHER CITY EMPLOYEE HAS A REASONABLE EXPECTATION WHERE THEY WORK. A LARGE MAJORITY OF THEIR TIME IS SAFE AND IS NOT GOING TO CONTRIBUTE TO ALONG TERM HEALTH RELATED ISSUES. SO AS YOU KNOW, FIREFIGHTERS BY THE NATURE OF OUR WORK, WE ARE EXPOSED TO TOXINS AND SOME NASTY CONTAMINATES AND AS SUCH, WE ARE AT A HIGHER RISK OF CONTRACTING CANCER AND CARDIOVASCULAR DISEASE. MANY STUDIES HAVE BEEN DONE ON THIS AND IN FACT, THAT'S WHY WE HAVE PRESUMPTIVE LAWS IN CALIFORNIA AND MANY OTHER STATES ACROSS THE COUNTRY, SPECIFICALLY TO CANCER AND CARDIOVASCULAR DISEASE FOR FIREFIGHTERS. REGULATORY AGENCIES LIKE OSHA ESTABLISHED REQUIREMENTS AND REGULATIONS FOR WORKPLACE ENVIRONMENTS TO STAY SAFE AND HEALTHY AND ALSO TO PROVIDE SOME LEVEL OF PRIVACY FOR MALE AND FEMALE EMPLOYEES. SO AS A RESULT, YOU CAN IMAGINE THAT FIRE STATIONS DESIGN HAS COME A LONG WAY IN THE LAST FEW DECADES. STATIONS ARE NOW BEING CONSTRUCTED IN AWAY TO HAVE A DISTINCT SEPARATION IN THREE DIFFERENT AREAS, SO AS YOU LOOK AT THIS SLIDE, THE RED ZONES HERE ARE AREAS OF THE FIRE HOUSE THAT WE KNOW CONTAMINANTS ARE GOING TO BE. THIS IS WHERE EQUIPMENT COMES BACK AFTER A MAJOR INCIDENT AND CONTAMINANTS ARE IN THIS AREA. THE YELLOW AREA OF THE FIRE STATION SHOULD BE WHERE WE TAKE THOSE TOOLS AND EQUIPMENT AND EQUIPMENT PROTECTED EQUIPMENT AND CLEAN THEM AND DECONTAMINATE THEM BEFORE THEY GET STOWED OR PLACED BACK ON THE APPARATUS. AND THE YELLOW ZONE IS ALSO WHERE WE NEED TO BE STORING OUR PROTECTIVE GEAR. THE GREEN ZONES, AS YOU SEE ON THIS PARTICULAR SLIDE ARE THE AREAS THAT ARE SUPPOSED TO BE CLEAR OF ALL CONTAMINANTS. THINK OF THIS AREA AS YOUR HOUSE OR PRIVATE RESIDENCE OR WORKPLACE, YOU OBVIOUSLY WANT IT TO STAY CLEAN BECAUSE THAT'S WHERE YOU'RE GOING TO LET YOUR HAIR DOWN IF YOU WILL AND RELAX A LITTLE BIT. SO AS WE GO THROUGH THE NEXT FEW SLIDES AND I'M GOING TO POWER THROUGH QUICKLY ON THE 8TH FIRE STATIONS FOR YOU, BUT I WANTED TO PUT THIS UP TO HAVE AN EYE TOWARD THE CONCEPT OF THE RED, YELLOW AND GREEN ZONES FOR FIRE STATIONS. SO WE'LL START WITH FIRE STATION ONE. WE'LL GO DOWN THE LINE. FIRE STATION ONE, AS YOU KNOW, IT'S DOWNTOWN ON SHASTA STREET. IT'S 9800 SQUARE FEET. THIS WAS BUILT IN 1939. AND IF YOU'RE A HISTORY BUFF, YOU LOVE THIS FIRE HOUSE AND OUR COMMUNITY LOVES THIS FIRE HOUSE AND OUR FIREFIGHTERS LOVE TO WORK OUT OF THIS STATION BECAUSE IN 2021, AS A FIREFIGHTER GETTING UP ON A RIG OR SLEEPING IN THE QUARTERS, TO KNOW YOU'RE IN THE SAME FACILITY THAT FIREFIGHTERS WERE WORKING IN IN THE 1940S IS PRETTY COOL. WITH THE AGE OF THE FIRE STATION IT HAS DRAWBACKS IN TERMS OF MODERN FIRE SERVICES AND THE THINGS WE'RE UP AGAINST. AS YOU CAN SEE, WE HAVE AN OPEN DORM CONCEPT, BEDS NEXT TO EACH OTHER. NO PRIVACY WHATSOEVER. WE HAVE SIX FIREFIGHTERS THAT WORK OUT OF THIS STATION. MEN AND WOMEN THAT WORK OUT OF HERE 24/7 SLEEPING IN BEDS NEXT TO EACH OTHER. ALSO, YOU'LL NOTICE THAT THE EQUIPMENT, FITNESS EQUIPMENT FOR THIS PARTICULAR STATION IS IN THE APPARATUS BAY WHICH IS THE RED ZONE AND FITNESS EQUIPMENT SHOULD BE KEPT IN THE GREEN ZONE FIRE STATION. A FEW PICTURES HERE OF THE COMMUNAL BATHROOM AT THIS FIRE HOUSE. SERVING SIX FIREFIGHTERS, MALE AND FEMALE. THERE'S TWO SHOWERS, TWO TOILETS. ONE TOILET HAS BEEN, WHICH I JUST FOUND OUTPUTTING THIS PRESENTATION TOGETHER, THAT WE'VE GOT FIXES TO DO IN TERMS OF A TOILET. THERE'S ONE TOILET SERVING SIX MALE AND FEMALE FIREFIGHTERS AT THIS STATION. ALSO, YOU'LL NOTICE THE APPARATUS BAY, THE REDSTONE IS WHERE WE'RE STORING OUR PROTECTIVE EQUIPMENT, BUNKER GEAR. IN OTHER WORDS, WE CALL IT. IT SHOULD BE STORED IN A YELLOW ZONE OF THE FIRE STATION. WE ALSO HAVE SOME HOSE STORAGE ISSUES AT THIS FIRE STATION. SO JUST SOME QUICK LITTLE DOWN AND DIRTY ESTIMATES FOR YOU AS WE GO THROUGH THIS. IF WE WERE TO HAVE OUR WAY, WE WOULD LIKE TO DO SOME UPGRADES TO THE BATHROOM. THIS WOULDN'T INCLUDE ANY TYPE OF RECONFIGURATION WHATSOEVER. IT WOULD BE UPGRADES. WE DO NEED A GENERATOR REPLACED WHICH IS IN THE CURRENT BUDGET THAT YOU'RE GOING TO BE CONSIDERING. WE WOULD LIKE TO PUT IN SOME TYPE OF PPE LOCKERS TO STORE THE BUNKER GEAR. STILL IN THE HOT ZONE OF THE FIRE STATION, BUT AT LEAST GET THEM INSIDE SOME ENCLOSED LOCKERS TO PROVIDE THEM A LITTLE PROTECTION. FIRE STATION 2 IS ON PLACER STREET. THIS IS ONE OF THREE FIRE STATIONS THAT HAS THE EXACT SAME FOOTPRINT, SO THEY'RE ALL BUILT IN THE LATE 70S. 5300 SQUARE FEET, 5400 SQUARE FEET. AS NOTE, YOU'VE GOT THREE FIREFIGHTERS HERE MALE AND FEMALE WORKING LESS THAN 600 SQUARE FEET. FITNESS GEAR AND THE RED ZONE OF THE FIRE STATION NEXT TO THE APPARATUS, VERY LIMITED PRIVACY IN THE SLEEPING QUARTERS. A SINGLE BATHROOM IN BACK, ONE TOILET AND ONE URINAL. THE RED ZONE HERE, THE APPARATUS BAY IS STORED A REFRIGERATOR AND PERSONAL LOCKER ROOMS AND BY OSHA REGULATIONS, THOSE ARE SUPPOSED TO BE IN THE GREEN ZONE OF THE FIRE STATION. WE HAVE DRAINAGE ISSUES ON THE BACKSIDE AND A GENERATOR NEEDS TO BE REPLACED. I BELIEVE THAT'S THE ORIGINAL GENERATOR FROM 1978 WHICH WE WOULD LIKE TO REPLACE IF WE'RE ABLE TO. SO, LONG-TERM PLAN FOR THESE THREE TYPE OF STATIONS WITH THE SAME FOOTPRINT WOULD BE TO DO SOME TYPE OF MAJOR REMODEL OR ADD SOME SQUARE FOOTAGE SO I JUST THREW UP NUMBERS FOR YOU, LOOSE NUMBERS. IF WE WERE TO ADD 1500 SQUARE FEET, WE WOULD BE LOOKING AT $5,000 TO DO THAT TO ONE FIRE STATION. STATION 3 IS LOCATED DOWN NEAR THE INTERSECTION OF SOUTH MARKET. IN BUENA VENTURA. THIS IS PRETTY NEAT LITTLE FIRE HOUSE. IT WAS BUILT IN 1963. THE FIREFIGHTERS THAT WORK OUT OF THIS STATION, THEY TAKE A LOT OF PRIDE AND OWNERSHIP IN WORKING OUT OF THIS STATION. ALTHOUGH IT IS QUITE SMALL AS YOU CAN SEE. I ALSO WANTED TO INDICATOR MAKE SURE YOU ARE AWARE THAT IT IS IN A FLOOD ZONE, SO IF WE WERE TO HAVE A MAJOR FLOOD IN THE CITY, THIS STATION WOULD BE PRETTY MUCH UNDER WATER AND RENDERED OUT OF SERVICE. AGAIN, FITNESS EQUIPMENT IN THE BAY, SMALL LIVING QUARTERS AND PICTURES IN THE BATHROOM. ONE URINAL AND ONE SHOWER AND ONE FOR WOMEN AND MEN. STRUCTURALLY, IT SEEMS TO BE IN GOOD SHAPE IN MATERIALS OF BEING SOLID. IT'S A SOLID STRUCTURE. THEY DID A GOOD JOB BACK IN THE 60S BUILDING STRUCTURES, BUT YOU CAN SEE THE EXPOSED STRUCTURAL MEMBERS, CERTAINLY HAVE SEEN SOME WEAR AND TEAR. THIS STATION WOULD NEED TO BE SCRAPED AND REBUILT ON THE CURRENT SITE OR RELOCATED SOMEWHERE WITHIN DISTRICT 3 TO ANOTHER PIECE OF PROPERTY OUTSIDE OF THE FLOOD ZONE. USING THE SAME NUMBERS OF $300 A SQUARE FOOT, IF WE WERE TO DOUBLE THE SQUARE FOOTAGE AND PLACE A NEW FIRE STATION THERE, WE THINK WE COULD PROBABLY GET A NEW FIRE STATION BUILT FOR $3.4 MILLION. STATION 4, AGAIN, IDENTICAL TO STATION 2. SAME FOOTPRINT. BUILT IN 1978. SMALL DORM AREA. FITNESS EQUIPMENT IN THE BAY. YOU'RE LOOKING AT 576 SQUARE FEET OF LIVING SPACE. SMALL BATHROOM. WE NEED A GENERATOR REPLACEMENT AND PPE LOCKERS IMMEDIATELY, BUT THE LONG-TERM PLAN WOULD BE TO DO A REMODEL IN ADDITION TO THIS FIRE STATION AS WELL. FIRE STATION 5 SERVES US VERY WELL IN THE ENTERPRISE AREA ON HARTNELL AND BUILT IN 1958. AS OLD AS IT IS, IT SERVES US WELL AND HAS ADEQUATE SQUARE FOOTAGE. THE SLEEPING QUARTERS, DORMITORIES ARE UP ON THE SECOND FLOOR, STILL LIMITED PRIVACY UP THERE. AND SOME UPDATES WOULD NEED TO BE ADDRESSED LIKE CEILING TILES AND LIGHTING AND ROOF LEAKS AND THINGS LIKE THAT. THIS GENERATOR DOES NOT NEED TO BE REPLACED CURRENTLY, BUT IT'S IN AN AWKWARD SPOT. A FEW YEARS AGO, WE PUT A GENERATOR IN FRONT OF OUR HOSE TOWER WHICH IS USED FOR A LADDER TRAINING, SO THAT GENERATOR RENDERED OUR LADDER TRAINING NOT TO HAPPEN ON THAT PARTICULAR TOWER. SO, SOME ESTIMATES FOR STATION 5, IT WOULD INCLUDE DOING SOME TYPE OF RECONFIGURATION TO MOVE OUR BATTALION CHIEFS OUT TO THAT LOCATION, SO WE THREW A NUMBER ON THERE FOR YOU TO LOOK AT. STATION 6 IS THE LAST OF THE TRIPLE FIRE STATIONS WITH THE SAME EXACT FOOTPRINT ON OASIS SEARCHING THE BIKE EYE FIRE DISTRICT AS WELL AS REDDING, BUILT IN 980, SMALL -- BUILT IN 980 AND SMALL -- BUILT IN 1980 AND SMALL KITCHEN THAT NEEDS TO BE REPLACED AND SMALL DORMITORY AND REFRIGERATOR AND ICE MAKER AND SMALL LONGERS IN THE RED ZONE AND FITNESS -- SMALL LOCKERS AND RED ZONE. WE WOULD LIKE TO DO AN ADDITIONAL AND REMODELING TO THIS FIRE HOUSE AS WELL. STATION 7 SERVES THE AIRPORT. IT'S IN PRETTY GOOD SHAPE IN TERMS OF SERVING OUR FIREFIGHTERS THAT HAVE ADEQUATE SQUARE FOOTAGE. WE'RE ABLE TO SEPARATE PRETTY MUCH RED ZONES FROM YELLOW OR GREEN ZONES FAIRLY WELL. ALTHOUGH THERE IS A MAJOR PROBLEM WITH WATER OUT THERE. APPARENTLY THE WATER IN THAT AREA IS PRETTY HARD AND WE GO THROUGH DISHWASHERS QUICK. WE WERE TOLD WE NEED A WATER FILTRATION SYSTEM. FIRE STATION 8 IS OUR NEWEST FIRE STATION ON CHURN CREEK. WE HAVE ADEQUATE SQUARE FOOTAGE AND WE CAN SEPARATE RED ZONES FROM YELLOW ZONES TO GREEN ZONES PRETTY WELL, SO THERE'S NO IMMEDIATE NEEDS AT THIS TIME. THIS LAST SLIDE I HAVE FOR YOU, OBVIOUSLY, IT'S JUST A GROUPING, IF YOU WILL, OF SOME OF THE THINGS THAT WE WOULD LIKE TO DO. IF WE WERE TO HAVE SOME FUNDS TO TAKE CARE OF OUR BASIC NEEDS OR IMMEDIATE NEEDS WITHOUT DOING ANY RECONFIGURATIONS OR ADDITIONS AND REMODELS, WE WOULD NEED ABOUT $333,000 TO DO THAT. IF YOU WERE TO, IF WE WERE TO HAVE FUNDS TO REMODEL, AT LEAST ONE OF THE THREE STATIONS, WE WOULD BE LOOKING AT AN ADDITIONAL $500,000. THE THIRD NUMBER THERE IS TO REPAIR ALL OF OUR BASIC NEEDS, REMODEL TWO STATIONS. THE NEXT NUMBER IS TO REPAIR ALL OF OUR BASIC NEEDS, REMODEL ALL THREE OF THOSE STATIONS. THE $5 MILLION NUMBER IS REPAIR ALL NEEDS AND REMODEL OR RELOCATE OR REBUILT FIRE STATION 3. ONE THING I HAVEN'T SPOKEN TO YOU ABOUT AND IT MIGHT BE A SHOCKER, WE HAVE A NEED FOR A FIRE STATION EAST IN SHASTA VIEW. IF WE WERE TO ADD AN ADDITIONAL FIRE STATION TO THE MIX AS WELL AS TAKE CARE OF ALL THESE OTHER NEEDS FOR US, WE'RE THINKING WE CAN DO THAT FOR UNDER $10 MILLION. SO BIG NUMBERS FOR YOU, I KNOW, HIGH LEVEL. CERTAINLY A LOT OF THIS STUFF WILL NEED TO BE VETTED OUT, BUT I WANTED TO SET THE TABLE FOR YOU FOR FUTURE CONVERSATIONS AROUND STRATEGIZING CAPITAL IMPROVEMENT PLAN FOR FIRE STATIONS IN THE FUTURE. WITH THAT, I'LL OPEN IT UP TO QUESTIONS OR COMMENTS YOU MAY HAVE. >> DO ANY OF THE COUNCIL MEMBERS HAVE QUESTIONS? MAYOR RESNER? >> AT THIS TIME, I DON'T HAVE QUESTIONS. >> COUNCILMEMBER WINTER HAS A QUESTION. >> OF ALL THE FIRE STATIONS, WHAT WOULD BE YOUR HIGHEST PRIORITY? WHAT WOULD BE THE FIRST THING -- THE FIRST ONE YOU WOULD DO? >> IN TERMS OF REMODEL? >> THE REPAIR OF BASIC NEEDS. >> ALL -- >> IF WE GOT YOU $50,000, WHERE WOULD YOU SPEND THAT? >> WE WOULD HAVE TO GO BACK AND LOOK AT THE VARIOUS LIST AT THE FIRE STATIONS AND MAKE A PRIORITY LIST FOR YOU, BUT I COULD SAY PROBABLY, IT WOULD BE SOME WORK AT REPLACING GENERATORS FOR THE STATIONS. >> OKAY. THANK YOU. >> COUNCILMEMBER MEZZANO. >> WHAT DO THE GENERATORS DO, WHAT ARE THEY FOR? >> THEY DEEP THE FIRE SERVICE IN SERVICE. SO IF THE POWER IS OUT AND THE GENERATORS GO OUT, THE FIRE STATION ESSENTIALLY IS OUT OF SERVICE AND UNABLE TO -- DIFFICULTY COMMUNICATING AND NOTIFYING TO RESPOND TO EMERGENCIES. >> SO, IF I UNDERSTAND YOU CORRECTLY, IT'S A BACKUP TO REU? IS THAT CORRECT? >> THAT'S A GOOD WAY TO PUT IT. >> I SEE A NEED. I'M NOT GOING TO DEBATE IT. BUT IT'S A BACKUP SYSTEM. >> YES. >> MY MOST TROUBLING IS ON STATION NUMBER 5, SOMETHING IS PREVENTING YOU FROM DOING LADDER TRAINING. THAT'S NOT ACCEPTABLE. I THINK THAT BECOMES A PRIORITY AND I THINK IT'S UPON THE COUNCIL TO REMEDY THAT. IF YOU CAN'T MEET YOUR TRAINING NEEDS, YOU PUT US ALL AT JEOPARDY AT SOME POINT OR AT LEAST YOUR FIREFIGHTERS. WOULD YOU -- >> COUNCILMEMBER MEZZANO, I WOULD AGREE WITH YOU. WE FIGURE OUT WORKAROUNDS. WE'LL GO KNOCK ON SOMEBODY'S DOOR IN THE AREA THAT HAS A BUILDING AND DON'T MIND US LEANING A LADDER UP AGAINST. WE HAVE FIGURED THAT OUT. >> I APPRECIATE THAT, BUT I HOPE WE DON'T HAVE TO DO THAT IN THE FUTURE. >> THANK YOU. >> I HAVE A QUESTION AND A COMMENT. ON STATION NUMBER ONE, AND YOU DIDN'T MENTION IT IN YOUR PRESENTATION, YOU SAID LONG-TERM NEEDS RELOCATION. IS THAT SOMETHING THAT YOU WOULD CONSIDER IN YOUR, LIKE, AFTER YOU TOOK CARE OF THIS LIST OF SIX ITEMS HERE? >> YES. FIRE STATION 1 IS, SOMETHING NEEDS TO BE DONE IN TERMS OF REBUILDING THAT STATION EITHER A SCRAPE AND REBUILD AT THE CURRENT SITE OR SOMEWHERE NEAR THAT AREA. THE PROBLEM THAT WE HAVE WITH FIRE STATION ONE RIGHT NOW IS WE SHUTDOWN TRAFFIC QUITE OFTEN ON SHASTA STREET THERE. WE GET SEVERAL COMPLAINTS ON A WEEKLY BASIS THAT WE HAVE TO SHUTDOWN TRAFFIC TO BACK UP FIRE ENGINE TO THAT STATION, FOR EXAMPLE. >> THEN, WITH REGARD TO TRAINING, HOW MUCH IS THE REDDING FIRE UTILIZING THE TRAIN FACILITY. ? IS THAT SOMETHING THAT WORKS WELL IN OUR AREA. >> THE SHIELD TRAINING FACILITY ON CATERPILLAR PROVIDES US CLASSROOM SPACE TO ATTEND CLASSES AND WE UTILIZE THAT QUITE OFTEN IN CONJUNCTION WITH CAL FIRE AND THE OTHER REGIONAL AGENCIES, SO WE'RE WORKING REALLY WELL IN THAT AREA. THE OTHER FACILITY AT SHASTA COLLEGE IS MORE PROBLEMATIC, SO IT'S OUTSIDE OF THE CITY LIMITS. IT'S QUITE FAR AWAY, SO FOR ME TO TAKE TWO OR THREE ENGINE COMPANIES ON DUTY AND SEND THEM OUT OF THE CITY TO DO TRAINING AT THOSE FACILITIES, THAT INCREASES OUR RESPONSE TIMES, PUTS MORE WORKLOAD ON THE LEFT OVER ENGINES OR WE CALL BACK FIREFIGHTERS ON OVERTIME TO STAFF THOSE STATIONS WHICH COST US MORE MONEY TO BE ABLE TO UTILIZE THOSE FACILITIES OUT OF TOWN. THEY'RE GREAT FACILITIES AT SHASTA COLLEGES AND WE PLAN TO DO LIFE TRAINING THIS FALL. WE'LL SEE HOW IT GOES, BUT PULLING THOSE RIGS OUT OF THE CITY IS THE PROBLEM. >> I APPRECIATE THAT. I THINK THAT'S ONE OF THE THINGS THAT WE'VE LEARNED OVER THE YEARS IS SOMETIMES THE COMMUNITY MIGHT SHARE WITH COUNCIL MEMBERS, WHY DO THEY DRIVE THEIR TRUCK EVERYWHERE. THEY DRIVE THEIR TRUCK TO THE GROCERY STORE. THAT'S BECAUSE THEY'RE ON DUTY. SO IT'S, AND WE UNDERSTAND THAT AND I UNDERSTAND COUNCILMEMBER MEZZANO'S CONCERN ABOUT MAKING SURE THAT WE PROVIDE THE RESOURCES AND THE AVAILABILITY FOR TRAINING, I THINK THAT'S IMPORTANT. I WILL GET TO COUNCILMEMBER WINTER, I'LL FOLLOW UP ON HER QUESTION. AND I THINK IT WILL COME BACK TO US. THIS IS, LIKE, YOUR INITIAL PRESENTATION. IT WOULD SEEM TO ME THAT ONE OF THE THINGS WE WOULD TRY TO FIND A BALANCE BETWEEN THE MOST IMPORTANT PRIORITY NEEDS THAT IF WE, AND ALSO LOOKED AT WHAT TYPES OF FUNDING WE MIGHT HAVE AVAILABLE IN THE MOST IMMEDIATE FUTURE, YOU KNOW. THIS IS GETTING TO NINE PLUS MILLION DOLLARS IS GOING TO TAKE MORE THOUGHT AND PLANNING, BUT IF WE'RE GOING TO ADDRESS THE MOST IMMEDIATE NEEDS, I THINK THE COUNCIL WOULD PROBABLY NEED TO BE WORKING WITH STAFF, YOUR STAFF AND OUR CITY MANAGER TO MEET THAT BALANCE BETWEEN WHAT IS, WHAT ARE THE HIGHEST NEEDS THAT REALLY SHOULDN'T BE PUT OFF AND WHAT MONEYS WE ACTUALLY HAVE AVAILABLE TO KIND OF FIND A BALANCE, SO I THINK, I'M LOOKING AT, CITY MANAGER TIPPIN -- >> IF I MAKE PUT CONTEXT AROUND SOME OF THIS. IT'S A SERIOUS ISSUE WE HAVE, AND WE TALKED ABOUT DEFERRED MAINTENANCE FOR A LONG TIME. AND WE HAD DEFERRED MAINTENANCE BACK IN 2008 AND WE HAVE A GREAT RE-SIGNIFICANCE -- RECESSION OR THAT UNMET NEED IS 12, 15 YEARS DOWN THE ROAD. WE HAVE A PROPERTY FUND THAT ASSISTANT CITY MANAGER, DEMAN, MANAGES AND WE HAVE TALKED TO THE FIRE DEPARTMENT ABOUT MOVING INTO THIS NEXT BUDGET CYCLE AS THEY IDENTIFY THESE NEEDS THAT'S LESSER VALUABLE, THEY NEED TO CONTACT THE MANAGEMENT FUND SO WE CAN FIX THESE SMALLER ISSUES LIKE A BROKEN TOILET THAT I HAVEN'T HEARD ABOUT UNTIL TODAY. AND APPARENTLY, THE BUILDING MAINTENANCE HAD TRIED TO DO SMALL FIXES AND IT HASN'T BEEN EFFECTIVE. THOSE ARE THINGS WE'LL BE TAKING CARE OF THROUGH OUR PROPERTY MANAGEMENT FUND AND OR IF WE NEED TO COME BACK AND AUGMENT MONEYS FOR THOSE THINGS AS WE MOVE FORWARD, SO THOSE THINGS THAT ARE SMALLER IN NATURE, I WOULD SAY, WE PROBABLY DON'T NEED TO GET OVERLY CONCERNED ABOUT IMMEDIATELY AS WE MOVE DOWN THIS NEXT BUDGET CYCLE. ALSO, JUST A REMINDER THAT WITH THE GREENHOUSE GAS MONEYS THAT THE COUNCIL HAD PUT OUT THERE FOR IMPROVEMENTS, SOME OF THAT WAS FOR SOLAR AND REPLACEMENT OF HVAC UNITS AND THE SOLAR GETS INSTALLED AND GETS NEW ROOFING MATERIAL WITH IT, SO THERE'S IMPROVEMENTS HAPPENING ON FIRE STATIONS THROUGH THAT. BUT MORE IMPORTANTLY, AS THE COUNCIL KNOWS, IT'S ESTIMATED THAT MIGHT RESULT IN $400,000 WORTH OF ANNUALIZED SAVING FOR UTILITY BILLS. AS WE GET A BETTER ESTIMATE, WE'LL BE BACK TO THE COUNCIL AND HOW YOU WANT TO APPROACH THAT 400,000, DO YOU WANT TO PUT IT IN RESERVES OR LOOK AT IT IN A BONDING WAY SO YOU CAN BOND AN AMOUNT THAT'S PAID FOR, THE DEBT SERVICE IS PAID FOR BY THE SAVING AND UTILITIES BILLS OR DO YOU WANT TO USE IT AS A CASH SOURCE YOU CAN DO SOME MORE WORK, NOT ONLY WITHIN THE FIRE DEPARTMENT, BUT OTHER LOCATIONS FOR LIKE RECREATION PARKS, THAT SORT OF THING. ALL THOSE DECISIONS ARE SITTING IN FRONT OF YOU AS THOSE THINGS COME TO BEAR IN THE NEXT BUDGET CYCLE. ONE OTHER THING IS THAT I THINK IT'S ABOUT A LITTLE OVER $100,000 THAT'S IN BUDGET AS PRESENTED. BUT LATER AND AS WE PRESENT IN JUNE FOR FINAL ADOPTION, IT HAS A LITTLE OVER $100,000 FOR GENERATORS. THERE'S THINGS BEING ADDRESSED AND NOT IGNORED. BUT THERE'S A LOT TO DO STILL. >> I GATHER THAT. THERE WERE SOME THINGS, STATION 1 SAID IT WAS IN THE BUDGET. WE GET THAT. THE IMPORTANT THING FOR US TO RECOGNIZE IS THAT, HAVING A CONVERSATION IS THE BEST WAY TO GET THINGS STARTED AND THEN WE HAVE TO MAKE THE DECISIONS AND PRIORITIZE HOW WE MOVE FORWARD AND I THINK THIS IS A GOOD PLACE TO START. THANK YOU FOR YOUR PRESENTATION. >> WE HAVE -- >> I HAVE TWO QUESTIONS AND THIS IS FOR EITHER THE CHIEF OR MR. TIPPIN OR WHOEVER WOULD KNOW. IS THERE A SIGNIFICANT GRANT MONEY AVAILABLE TO MAKE ANY OF THESE IMPROVEMENTS OR IS IT PRINCIPALLY GOING TO HAVE TO COME FROM THE GENERAL FUND? >> WELL, I'LL KICK THIS OFF AND THE CHIEF MAY BE ABLE TO AUGMENT THIS. TYPICALLY SPEAKING, IT'S GOING TO COME FROM THE GENERAL FUND. THAT'S GENERALLY THE WAY THESE THINGS ARE DONE. THERE HAVE BEEN TIME IN THE PAST WHERE WE HAVE TAKEN ADVANTAGE OF GRANTS AND STATION 7 HAD THAT MONEY AVAILABLE THROUGH GRANTS FROM FAA BECAUSE IT SERVES AS THE AIRPORTS INWARD FACING FIRE DEPARTMENT. WE DID HAVE SOME OPPORTUNITY FOR GRANTS THERE. STATION 8, WE ACTUALLY BUILT WITH A SIGNIFICANT AMOUNT OF FUNDING FROM THE DEFUNCT DEVELOPMENT AGENCY. SO WE WERE ABLE TO DO THINGS WITH THE DEVELOPMENT AGENCY, BUT GENERALLY SPEAKING, YOU'RE TALKING GENERAL FUND. >> THE SECOND QUESTION IN GENERAL, WE'VE KICKED AROUND THE ISSUE OF OVERTIME AND THE FIRE DEPARTMENT HAS THREE OR $4 MILLION A YEAR IN OVER TIME AND THERE'S QUESTIONS ABOUT WAYS TO REDUCE THAT. DO YOU SEE THAT AS A SOURCE OF COMING UP. IF YOU GOT A $9 MILLION PAYMENT MADE FROM THE GENERAL FUND AND THE GENERAL FUND DOESN'T HAVE $9 MILLION TO PAY AT ONE TIME, WHAT SOURCE OF INCOME CAN THE GENERAL FUND HAVE TO TRY TO START SAVING OR MAKING MONEY OR IS IT JUST WISHING AND PRAYER THAT THE TOT GOES UP? >> I THINK THERE'S TWO COMPONENTS. ONE, RELATED TO OVER TIME. WE TALKED ABOUT BRIEFLY AND THEN MAYBE MORE IMPORTANTLY, WE CAN TALK ABOUT IT IN MORE DETAIL IN THE NEXT ITEM WHICH IS PROPERLY AGENDIZE. AS WE FIND WAYS TO REDUCE, EITHER REDUCE THE OVERTIME EXPENSE OR FIND ADDITION FALL REVENUE SOURCES TO OFFSET THE OVERTIME EXPENSES, THAT WILL BE A POSITIVE TO THE GENERAL FUND AND THE COUNCIL CAN MAKE DECISIONS ON WHAT TO DO WITH THAT FUNDING GOING FORWARD WHETHER IT'S TO MAINTENANCE OR OTHERWISE. AND TO YOUR OTHER QUESTION, THAT'S THE DILEMMA WE FACE ON EVERYTHING WE DO WHETHER IT'S A HOPE AND PRAYER OR GOOD FISCAL DECISIONS AND DECISIONS THAT HELP ECONOMIC DEVELOPMENT WITHIN THE COMMUNITY. THE REALITY IS THAT THE GENERAL FUND IS A FUNCTION OF SALES TAX, PROPERTY TAX AND TOT. THOSE ARE OUR PRIMARILY FUNDING SOURCES AND THAT'S WHAT WE HAVE TO DEAL WITH AND SO, I THINK IT'S, WE'VE BEEN SUCCESSFUL WITH REALLY GOOD CONSERVATIVE FISCAL MANAGEMENT OVER THE YEARS. AND I WOULD SAY WE CONTINUE TO FOCUS ON THAT. ONE OF THE REASONS WHY WE'VE TALKED ABOUT THE UNMET MAINTENANCE NEEDS SO MUCH OVER THE LAST THREE YEARS IS BECAUSE IT NEEDS TO BE IDENTIFIED AND CAN'T BE IGNORED AND WE NEED TO BE PLANNING FOR IT AND BUDGETING ACCORDINGLY. >> THANK YOU. >> JUST, CHIEF, BEFORE YOU GO. A COUPLE OF COMMENTS. I KNOW YOU'RE NEW HERE AND YOU'RE REALIZING ALL OF THIS FIRSTHAND, IF YOU WILL, I WOULD HAVE TO SAY THAT WE'VE RECENTLY DONE OUR PART. WE'VE GOT THREE IN A TRUCK NOW, IS THAT CORRECT? >> YES, SIR. >> WE HAVE DONE THAT, BUT I LOOK AT THESE PICTURES AND I'M APPALLED THAT SOME OF THIS IS GOING ON. FOR A FIREFIGHTER THAT HAS TO RISK HIS OR HER LIFE AND ASK THEM TO SLEEP IN A BUILDING THAT HAS A LEAKY ROOF. THERE'S A CHALLENGE. HE WANTS 22 -- $228,000, WE NEED TO FIND IT AND HELP THESE GUYS AND GET THEM A DECENT PLACE TO SLEEP AND SOME OF THE EQUIPMENT THEY NEED TO, YOU KNOW, I'M GOING TO BACK TO 2010 WHEN I WORKING A BIG RIG CRASH AND THE WIND SHIFTED AND I HAVEN'T BEEN ABLE TO SMELL GARLIC SINCE THEN. TO YOUR TURN OUT IN THE BAY WHERE THEY'RE SUBJECT TO THE HAZMAT THEY WERE AT, IT'S JUST DISAPPOINTING IN MY OPINION AND NOT ACCEPTABLE. WE NEED TO WORK ON THAT. >> I AGREE. I WANT TO MAKE CLARIFYING INFORMATION. PAST CHIEF AND COMMAND STAFF NEED TO BE COMMENDED TO SOME DEGREE. BECAUSE OVER THE PAST SEVERAL BUDGET CYCLES, THE FOCUS HAS GETTING TO THREE PERSONS PER ENGINE. THE FIREFIGHTER DECIDES THEY WEREN'T GOING TO PRESS FOR THE OTHER THINGS THEY NEED BECAUSE THE PROTECTION OF THE COMMUNITY WAS FAR MORE IMPORTANT SO THE FOCUS WAS ON HOW DO WE GET TO THREE PEOPLE PER ENGINE? AND WE WILL DEAL WITH THE SITUATION ON DAY-TO-DAY BASIS TO TRY TO GET THOSE INDIVIDUALS ON THOSE TRUCKS AS YOU NOTED. WE JUST ACHIEVED THAT FOR THE FIRST TIME EVER. WITH NEW LEADERSHIP AND OPPORTUNITY TO START LOOKING AT OTHER THINGS BEYOND THREE PEOPLE PER ENGINE, NOW WE NEED TO FOCUS ON THOSE ISSUES YOU BROUGHT UP. SO I AGREE WITH YOU THAT IT'S NOT ACCEPTABLE, BUT I ALSO WANT TO ACKNOWLEDGE THAT IT'S THAT WAY BECAUSE OF PRIOR FIRE STAFFING THAT SAID, PROTECTING THE COMMUNITY IS A HIGHER FOCUS FOR US THAN DEALING WITH OUR OWN COMFORT SO FOR THAT, I THINK THEY NEED TO BE COMMENDED. >> THANK YOU FOR CLARIFYING THAT BECAUSE THAT'S EXACTLY WHAT MY EXPERIENCE HAS BEEN IS THAT WHEN WE WERE FACED WITH, UM, LESS MONEY, WE PRIORITIZED IT AND WE HAVE, AND IN THE SIX YEARS I HAVE BEEN HERE, A PRIORITY HAS BEEN TO GET THREE PEOPLE ON AN ENGINE. AND FOR THAT, WE, YOU KNOW, WE'RE FACED WITH MAKING SOME HARD CHOICES AND I APPRECIATE THE DEPARTMENT FOR PUTTING THE PRIORITY OF OUR COMMUNITY FIRST AND FOR THAT, WE'RE APPRECIATIVE AND THANK YOU MR. TIPPIN FOR HELPING TO GIVE US A REMINDER OF HOW WHERE WE GOT TO WHERE WE'RE AT AND I THINK THIS HAS BEEN A GREAT CONVERSATION AND ANYTHING ELSE YOU WOULD LIKE TO ADD, CHIEF? >> NO, I THINK WE PRETTY WELL COVERED IT. THANK YOU FOR YOUR TIME TODAY. THANK YOU. >> THANK YOU. >> OUR NEXT ITEM IS 3B. >> ITEM 3B IS REALLY SORT OF A SYNOPSIS OF THE GENERAL FUND. LAST TIME, WE HAD A DISCUSSION ABOUT OUR ASSUMED REVENUES. A LARGE EXPENSIVE CAPITAL NEEDS THAT WE ARE RECOMMENDING THAT WE PLACE INTO THE TENURE PLAN. COUNCIL GAVE GENERAL DIRECTION. TONIGHT, WE'RE GOING TO DIVE DEEPER INTO EXPENSES NECESSARY TO COMPLETE THIS BUDGET AND TO HAVE OUR SERVICES PROVIDED OUT TO COMMUNITY. AS WELL AS DISCUSS THOSE CAPITAL PLANS THAT WE HAVE INCORPORATED. ONE OF THE BENEFITS OF HAVING THAT CONVERSATION, AS WE GET TO THE PLAN, SITTING AT 10% WITH CAPITAL IMPROVEMENTS. IF THE DECISION OF THE COUNCIL IS WE WANT TO PUT SOME MORE MONEY INTO THE FIRE STATIONS, YOU'VE GOT TO TAKE IT OUT SOMEWHERE ELSE OR RISK GOING BELOW YOUR TEN PERCENT RISK RESERVE POLICY NUMBER. WE'LL GET THAT TOWARD THE END. THE FIRST PART OF THIS, I'VE ASKED OUR FINANCE OFFICER GREG ROBINETT TO GO THROUGH THE BUDGET ELEMENT ITEM BY ITEM. BEFORE HE DOES THAT, I ACTUALLY WANT TO AND WE DO THIS ON AN OCCASIONAL BASIS, BUT IT'S IMPORTANT WE HAVE THE QUALITY OF STAFF THAT WE HAVE IN THE FINANCE DEPARTMENT. I CAN TELL THANK YOU GIVES ME GREAT, YOU KNOW, COMFORT TO KNOW WE HAVE SUCH QUALITY STAFF. THE DIRECTOR ALAN CLARKE HAS DONE EXCELLENT JOB OF GROWING HER STAFF AND PROVIDING THEM OPPORTUNITIES TO BECOME EXPERTS AND -- AND HE DESERVE AS WELL AS HIS STAFF JUST TREMENDOUS CREDIT IN PUTTING THIS TOGETHER. I WANT TO ACKNOWLEDGE THAT. AND THEN HOPE HE'S EMBARRASSED AS I HAND IT OVER TO HIM AND HE GOES THROUGH THE PRESENTATION. >> I APPRECIATE THOSE COMMENTS AND YES, I'M EMBARRASSED. MAYOR, COUNCIL. THANKS FOR YOUR TIME. I'M GOING TO TRY TO, BARRY TOUCHED ON A LITTLE BIT, BUT THIS PRESENTATION IS GOING TO BUILD FROM, I WOULD SAY THE MINUTIA FOR A LACK OF A BETTER TERMS, THE NUTS AND BOLTS OF THE PLAN. IF YOU HAVE QUESTIONS OR YOU WANT TO PAUSE OR ASK ME INFORMATION THAT NEEDS TO BE CLARIFIED, FEEL FREE TO JUMP IN AS I PRESENT THIS. SO THIS FIRST SLIDE IS ACTUALLY A VERY COMMON WAY WE LOOK AT EXPENDITURES AND THAT'S THE TYPE OF EXPENSE. ON THE LEFT, YOU HAVE OUR FIRST FISCAL YEAR AND THAT'S SHOWING THE BLUE ON BOTH GRAPHS. IT'S SHOWING PERSONNEL EXPENSE. THE GREEN IS SHOWING THE OPERATING EXPENSE. THE KIND OF YELLOWISH COLOR AND INTERNAL SERVICE FUND CHARGES AND THE ORANGE IS CAPITAL AND THE RED IS DEBT SERVICE. AND SO AS YOU CAN SEE, THE GENERAL FUND, TOTAL BUDGET IS $96 MILLION IN BOTH YEARS AND I'LL ADD THE FIRST YEAR INCLUDING A LARGE AMOUNT OF CAPITAL, ONE-TIME EXPENSES AND THE SECOND YEAR, OBVIOUSLY IS INCREASED AS A RESULT OF DIFFERENT INCREASES TO VARIOUS CONTRACTS WITH UNION GROUPS OR SERVICES THAT ARE RENDERED BY OUTSIDE VENDORS AND WE MAKE SURE TO FACTOR THEM IN AS ACCURATELY AS POSSIBLE TO WHAT IS REFLECTED IN EACH OF THOSE CONTRACTS AS WE BUILD THE BUDGET. THIS NEXT SLIDE KIND OF BREAKS DOWN -- >> EXCUSE ME. WE HAVE A QUESTION. >> I HAVE A QUICK QUESTION. CAN YOU GIVE US AN IDEA, IS THIS AVERAGE FOR CITIES? THIS SORT OF A BREAKDOWN, WHAT WOULD YOU SAY? >> ABSOLUTELY, FOR GENERAL FUND. >> FOR GENERAL FUND, YEAH. >> KEEP IN MIND THAT THIS IS THE GENERAL FUND COMPONENT AND THAT'S VERY AVERAGE. ALMOST ALL GENERAL FUND, YOU KNOW, LET ME BACK UP. ALL CITIES WHO PROVIDE GENERAL FUND SERVICES LIKE WE DO, WE DO THAT WITH PERSONNEL SO GENERALLY, YOU'RE GOING TO SEE LARGER COMPONENTS OF GENERAL FUND BUDGETS BE PERSONNEL RELATED. >> SO, WITH THAT SAID, THE FIRST YEAR OF THE BUDGET, THIS IS ACTUALLY STARTING TO BREAK THE BUDGET DOWN BY FUNCTION OF THE GOVERNMENT ON THE LEFT SIDE THERE. THE LEFT GRAPH KIND OF SHOWS YOU THE TOTAL RAW BUDGET DOLLARS AND THE RIGHT GRAPH, WE USE THIS TERM -- IT WENT BACKWARDS. I APOLOGIZE. SO, THE EXPENDITURES BY FUNCTION ON THE LEFT ACTUALLY SHOW YOU POLICE, FIRE, PUBLIC WORKS IN RAW DOLLARS OF EXPENSE ONLY, AND THAT'S IF, IF YOU OPEN OUR BUDGET, YOU'LL FIND THESE GRAPHS AND THE BUDGET MESSAGE FROM THE CITY MANAGER, YOU'LL FIND IT IN THE SUMMARY SECTION, BUDGET SULTRY -- SUMMARY BUDGET SECTION AND THAT'S HOW WE TALK ABOUT GRAPH. THE BUDGET ON THE RIGHT TAKES REVENUES GENERATED WHETHER IT'S FOR FEES THEY CHARGE FOR THEIR SERVICES AND YOU'LL USE PUBLIC WORKS AND THAT CONSIST OF OUR ENGINEERING DEPARTMENT WHICH DOES WORK FOR UTILITIES AND YOU'LL SEE DETAILS LATER, BUT THEY HAVE THE STREETS DEPARTMENT IN THAT DEPARTMENT AND THEY BRING IN GAS TAX REVENUE THAT PAYS FOR THE STREET MAINTENANCE THAT'S DONE, SO PUBLIC WORKS GOES FROM BEING A RAW, YOU KNOW, 11% OF THE BUDGET ROUGHLY TO BEING ZERO PERCENT OF THE BUDGET WHEN YOU BREAK IT INTO WHAT DO WE TRULY HAVE DISCRETIONARY ABILITY TO CHANGE THE EXPENDITURE AND CHANGE THE OUTLOOK OF THE SERVICES PROVIDED BY THE GENERAL FUND. AND WHAT ULTIMATELY HAPPENS IS YOU SEE THAT THE IMPACT OF POLICE AND FIRE ON OUR DISCRETIONARY BUDGET WHEN YOU TAKE INTO ACCOUNT REVENUES THAT'S GENERATED BY EACH OF THE DEPARTMENTS AND REMOVE DEBT AS AN EXAMPLE BECAUSE THOSE ARE DECISIONS THAT WERE MADE 15, 20 YEARS AGO WHEN WE DECIDED TO TAKE OUT THAT DEBT AND NOT DECISIONS WE CAN CHANGE OR MODIFY NOW, POLICE AND FIRE GOES FROM BEING 65, 66% OF THE BUDGET TO NEARLY 80% OF THE BUDGET SO IT'S JUST AN EASY WAY TO LOOK AT, IF WHAT DO WE REALLY HAVE THE ABILITY TO CHANGE AND IMPACT SAVE BEINGS TO THE GENERAL FUND. THIS IS THE FIRST YEAR THAT I'LL TOUCH ON THE NEXT SLIDE. THIS IS THE SECOND YEAR. SAME KIND OF VIEW. IT'S OBVIOUSLY SKEWED. A LITTLE LEAVE -- WE HAVE LESS CAPITAL AND AS YOU KNOW FROM THE LAST BUDGET WORKSHOP, WE INCLUDED ABOUT $1.8 MILLION FOR RUNNING AQUATIC IMPROVEMENTS. YOU END UP WITH MORE WEIGHT OF THE BUDGET HEADING TOWARDS POLICE AND FIRE. >> COULD I ASK ONE QUESTION? >> YES, SIR. >> IS THIS FACTORED INTO THE 20 PERCENT RAISE OVER TWO AND A HALF YEARS THAT WE GAVE TO POLICE AND FIRE. >> YES, SIR. >> THIS IS FOR FISCAL YEAR 21, 22. WE WOULDN'T EXPECT A DECREASE BEING PAID TO POLICE AND FIRE OVER TWO YEARS. IT WOULD GO UP IF ANYTHING, RIGHT? >> YES, SIR. >> THANK YOU. >> IT WOULD GO UP, BUT DEPENDING ON WHAT OUR CAPITAL EXPENDITURES ARE IN EACH OF THOSE GIVEN YEARS AND THOSE ARE THE DECISIONS WE MAY OR MAY NOT HAVE ALREADY PLANNED IF I COULD GET CITY MANAGER TIPPIN TO -- >> YEAH. I MEAN, AS WAS JUST MENTIONED, THE PERCENTAGE THAT WE PUT TOWARDS PERSONNEL IS IMPACTED BY OTHER THINGS HAPPENING WITHIN THE GENERAL FUND. AS YOU NOTED, IF WE HAVE OTHER CAPITAL PROJECTS THAT WE ARE ABLE TO RECEIVE MONEY ON AND EXPEND, THEN THAT COULD CAUSE THAT PERCENTAGE TO GO DOWN OR IF WE HAD JUST AN UNEXPECTED GROWTH IN REVENUES AND THOSE REVENUES WERE PUT TOWARD OTHER THINGS BY THE COUNCIL AS OPPOSED TO PERSONNEL OR POLICE SPECIFICALLY, THAT WOULD CHANGE THOSE PERCENTAGES AS WELL. BUT COUNCILMEMBER DACQUISTO IS CORRECT THAT IN THE SENSE, AS YOU APPROVE CONTRACTS AND LABOR NEGOTIATIONS CONCLUDE AND THOSE HAVE A PRESSURE ON THE AMOUNT OF REVENUE FUNDS NEEDED. >> I WENT BACK A COUPLE OF SLIDES TO BURRY BERRY'S POINT. AND THE FIRST IS $4 MILLION OF CAPITAL AND MORE THAN THAT BECAUSE WE HAVE MORE CAPITAL IN THE FIRST YEAR BEFORE WE CAME TO THE FIRST COUNCIL WORKSHOP. AND YOU CAN SEE THAT OUR PERSONNEL PERCENTAGE IS ABOUT 67%. AND THE SECOND PERCENT, IT RISES TO 72% AS THE ONE-TIME CAPITAL ARE NO LONGER IN THAT YEAR'S BUDGET AS OF RIGHT NOW, BUT AS WE BRING THEM BACK, IT WILL LOWER THAT PERCENTAGE DOWN. >> SO, THE NEXT FIVE OR SIX SLIDES IS TAKING PIECES OF THOSE PREVIOUS SLIDES AND KIND OF TAKING THEM OUT AND INDIVIDUALLY LOOKING AT THEM, SO WE HAVE THE PREVIOUS SLIDE BUILT, POLICE, FIRE, PUBLIC WORKS, COMMUNITY SERVICES, DEVELOPMENT SERVICES SO THIS IS TAKING ONE PIECE OF THAT BUDGET OUT AND JUST LOOKING FROM A FUNCTIONAL STANDPOINT, WHERE DOES THAT BUDGE OUT GO AND WHAT ITEMS ARE INCLUDED. SO THE POLICE BUDGET IS $36 MILLION IN THE FIRST FISCAL YEAR AND $38 MILLION IN THE SECOND FISCAL YEAR. THAT INCLUDES 167.13 FTE'S AND I WANT TO EXPLAIN THAT. .13 INVOLVES CONVERSION OF PART-TIME HOURS TO WHAT'S CALLED A FULL-TIME EQUIVALENT. IT'S JUST .13, IT'S CONVERTING IT TO 2,080 SO THEY HAVE 167 FTE'S AND 111 ARE SWORN. THE SIGNIFICANCE TO THIS BUDGET, THEY FACE RECRUITMENT CHALLENGES. WE INCLUDED ABOUT $80,000 FOR THE REPLACEMENT OF THEIR PISTOLS THAT SHOULD HAVE SOME COST SAVINGS AND OTHER BENEFITS AS WE MOVE FORWARD, AND THEN WE FUNDED ADDITIONAL ROLLING STOCK IN THE FIRST FISCAL YEAR THAT WAS INCLUDED IN THIS BUDGET. >> I HAVE A QUESTION. WHEN YOU SAID ON THE REPLACEMENT OF THE PISTOLS, IS IT THAT SPECIFIC EXAMPLE THAT WILL HELP REDUCE FUTURE COSTS? HOW DOES THAT WORK? IS THAT WHAT YOU'RE REFERRING TO? >> YEAH. THAT'S THE -- THE AMMUNITION COST SHOULD BE ABLE TO GO DOWN A LITTLE BIT OVER TIME. >> OKAY. BECAUSE WE'RE REPLACING OLDER EQUIPMENT OR HOW -- >> IT HAS TO DO WITH TYPE OF AMMUNITION. >> OKAY. >> IT'S NOT, LIKE, THAT CRITICAL, BUT -- >> IF THE COUNCIL IS INTERESTED, THE POLICE CHIEF CAN COME UP AND PROVIDE INFORMATION AS TO WHY THAT IS HAPPENING. >> OKAY. >> THAT WOULD BE GOOD. >> HI. WE HAVE, OUR PISTOLS ARE TEN YEARS OLD. AND WE'RE GOING TO REPLACE THE 40 CALIBER PISTOL WITH A NINE MILLIMETER AND A NEW SITING SYSTEM WHICH WILL, OBVIOUSLY INCREASE ACCURACY, BUT THE NINE MILLIMETER AMMO IS CHEAPER THAN FOUR AND HAS SIMILAR BALLISTICS AND A LOT OF AGENCY WAS GOING TO THIS. OUR AMMUNITION COST WITH MORE TRAINING WILL GO DOWN SIGNIFICANTLY. >> THANK YOU FOR THAT. >> UH-HUH. >> SORRY, I DIDN'T WANT TO ANSWER THE QUESTION FOR HIM INCORRECTLY, POTENTIALLY. SO THE NEXT BUDGET THAT WE'RE FOCUSING ON IS THE FIRE DEPARTMENT BUDGET. THE FIR YEAR OF THE BUDGET IS ABOUT $23.5 MILLION. AND THEN THE SECOND YEAR IS ABOUT $23.8 MILLION. THE FIRE DEPARTMENT HAS TOTAL FTE'S OF 97. 87 ARE ASSIGNED TO KIND OF THE FRONTLINE FIRE PERSONNEL THAT WORK IN STATIONS. INCLUDED IN THIS BUDGET IS THE WILDFIRE MITIGATION. THERE'S 12 FIREFIGHTERS IN THAT NOW AND THREE APPRENTICE FIREFIGHTERS. SIGNIFICANT ISSUES, THERE'S $2 MILLION OF RESERVES COMING TO COUNCIL ON TUESDAY FOR PURCHASE OF A NEW LADDER TRUCK AND A TYPE ONE ENGINE. I'LL EXPLAIN, THAT'S NOT EXACTLY IN THE BUDGET, BUT I REDUCED OUR BUILDING CASH NUMBER AND YOU'LL SEE THAT IN A FEW SLIDES WHEN WE GET TO THE TEN-YEAR PLAN BY THAT AMOUNT. IF THAT WERE TO NOT BE APPROVED, I WOULD MAKE THAT CHANGE NEXT WEEK AFTER THAT MEETING, BUT GIVEN THE DIRECTION THAT WAS PROVIDED ON THE 8TH, WE WENT AHEAD AND REDUCED OUR BUILDING CASH NUMBER BY THE $2 MILLION. FIRE DEPARTMENT CONTINUES TO FACE COST PRESSURES AS A RESULT OF AGING EQUIPMENT. AND PPE EQUIPMENT AS WELL. THAT'S AGING THAT NEEDS TO BE REPLACED SO THERE'S ADDITIONAL FUNDING IN THE FIRST YEAR TO HELP WITH THAT, BUT IT DEFINITELY DOES NOT ADDRESS ALL OF THOSE NEEDS IN FULL EITHER. THERE'S A NEW DEPUTY FIRE CHIEF INCLUDED IN BOTH YEARS OF THE BUDGET ALSO. >> IF I CAN JUMP IN HERE. SINCE WE TALK ABOUT THE FIRE STATIONS AND THE AMOUNT OF MONEY WE PUT INTO SOME OF THE ONM FOR THIS PPE AND OTHER EQUIPMENT IS A FAIRLY GOOD INCREASE THAT WE HAVE PUT IN THERE TO RECOGNIZE THAT NOT ONLY DO WE HAVE NEW STAFF THAT WE NEED TO TAKE OF, BUT MAKE SURE WE STAY CURRENT WITH THE NEEDS. AND THEN ALSO, I MENTIONED THIS BRIEFLY, BUT THE FIRE CHIEF IS WORKING DILIGENTLY TO PROVIDE OPPORTUNITIES FOR ADDITIONAL REIMBURSEMENT OF OVER TIME EXPENSES AND ALSO LOOKING AT REVENUE OPPORTUNITIES. AND SO ALL OF THOSE WILL BE COMING TO THE COUNCIL AT VARIOUS STAGES WHEN THEY GET FULLY DEVELOPED, SO I WANT TO LET THE COUNCIL KNOW THAT THE CHIEF IS WORKING HARD TO ALSO FIND WAYS TO OFFSET EXPENSES AND INCREASE REVENUES. >> OUR NEXT BUDGET IS THE COMMUNITY SERVICES BUDGET. THIS INCLUDES THE COMMUNITY SERVICES ADMINISTRATION. THERE'S THREE FULL-TIME EMPLOYEES, PARKS IS THE BULK OF THIS BUDGET AND RECREATION. THEIR TOTAL BUDGET IS $8.4 MILLION IN THE FIRST FISCAL YEAR AND $6.7 MILLION IN THE SECOND FISCAL YEAR. THE FIRST FISCAL YEAR INCREASE AS WE OUTLINED BY THE $1.8 MILLION FOR THE IMPROVEMENTS, REQUIRED IMPROVEMENTS AT THE AQUATIC CENTER. THAT'S INCLUDED IN THE BUDGET IN THE FIRST YEAR. THERE'S A TOTAL OF 72.19 FTE'S. THIS IS OVER RECREATION, PARKS AND COMMUNITY SERVICES ADMINISTRATION. ALSO IN THIS BUDGET INCLUDES 7 FULL-TIME POSITIONS FOR WILDFIRE MITIGATION ACTIVITIES THAT'S CROSS-CHARGED DIRECTLY TO REU. SIGNIFICANT ISSUES IN THIS BUDGET, THE $1.8 MILLION FOR THE AQUATIC REPAIRS AND THE RECREATION DEPARTMENT CONTINUES TO FACE COST PRESSURES AS A RESULT, INCREASES TO MINIMUM WAGE THAT ARE BEING DISPLAYED IN THIS BUDGET. THE RECREATION DEPARTMENT RAISED ABOUT A MILLION DOLLARS IN REVENUE THAT AS I SAID, IF YOU GO BACK A FEW SLIDES TO GRAPH, THAT WOULD BE MINUS OUT BECAUSE IT'S FOUR SERVICES -- BECAUSE IT'S FOR SERVICE PROVIDED. WHEN YOU'RE LOOKING AT THE DISCRETIONARY BUDGET, IT'S A REDUCTION. >> ADDITIONAL COMMENTARY HERE. THE COUNCIL MAY RECALL, THERE'S A POLICY THAT THE COUNCIL HAS THAT RELATES TO RECREATION AND TARGETED EXPENDITURES TO MINIMIZE THE AMOUNT OF -- IT HAPPENS OVER TO RECREATION AND THEY HAVE DONE A GOOD JOB OF MAINTAINING WITHIN THAT POLICY. I HAVE CHALLENGED DIRECTOR NEMER TO MAKE SURE THERE'S AN AGGRESSIVE AMOUNT IN TERMS OF WHAT THEY'RE CHARGING FOR THE RECREATION PROGRAM TO MAKE SURE WE'RE MAXIMIZING THE REVENUE THAT CAN BE ACHIEVED WITHOUT EXCLUDING THOSE BEING ABLE TO AFFORD THOSE RECREATION PROGRAMS. HOW MUCH CAN YOU CHARGE? YOU CAN'T CHARGE MORE THAN IT'S WORTH, BUT WE DON'T WANT TO CHARGE LESS THAN IT COST. I WANT TO LET YOU KNOW, IT'S A CONSTANT CONVERSATION AND RECREATION DOES A GOOD JOB OF MEETING THAT, BUT WE HAVE LAID DOWN GOOD CHALLENGES FOR THEM TO MAKE SURE THEY'RE MAXIMIZING THAT REVENUE STREAM SO THEY DON'T HAVE AN INCREASING AMOUNT COMING FROM THE GENERAL FUND, SO IT'S VERY DIFFICULT FOR THEM BECAUSE AS WE NOTED, POLICE AND FIRE TAKE UP A HUGE CHUNK OF THE GENERAL FUND. BUT WE ALL RECOGNIZE WHAT AN IMPORTANT ELEMENT COMMUNITY SERVICES IS FOR THE CITY OF REDDING SO THERE'S A CONSTANT BALANCING ACT. I WANT TO SHARE WITH THE COUNCIL, WE HAVE HAD THAT CONSTANT CONVERSATION AND IT'S NOT DONE LIGHTLY. >> THANK YOU. >> THE NEXT BUDGET IS THE PUBLIC WORKS DEPARTMENT. THEY HAVE, AS I STATED EARLIER, THE STREETS DIVISIONS IN THEIR DEPARTMENT AND ENGINEERING AND THERE'S A SMALL LAND DEVELOPMENT THAT ENGINEERING MANAGES THE BUDGET FOR AND THAT'S OFFSET WITH REVENUES. THEIR BUDGETS IS ABOUT $10.5 MILLION IN EACH FISCAL YEAR. THEY HAVE 56.8 FTE'S AND THEIR ISSUES INCLUDE MAJOR STREET REPAIRS THAT THEY FACE CHALLENGES ON DUE TO FUNDING ISSUES. ENGINEERING HAS A LARGE VOLUME OF WORK AND DEMANDS ON THEIR WORK AND THEY FACE RECRUITMENT CHALLENGES AS WELL. THIS BUDGET ACTUALLY LARGELY PAYS FOR ITSELF. BETWEEN CROSS CHARGES FOR ENGINEERING, STAFF, TO OTHER UTILITIES AND THE GAS TAX PAYING FOR THE STREETS DEPARTMENT, IF YOU LOOK AT THE TRUE DISCRETIONARY BUDGET OF ENGINEERING OR PUBLIC WORKS, GENERAL FUND, IT IS ESSENTIALLY ZERO TO THE GENERAL FUND. >> AND I'LL CONTINUE MY ROLE AS A COLORED COMMENTATOR, AND IT'S IMPORTANT TO NOTE WHEN WE TALK ABOUT DEFERRED MAINTENANCE AND WHEN WE TALKED ABOUT THE FIRE STATION, OUR STREET HAS A MAINTENANCE. IT'S WELL OVER $40 MILLION. PROBABLY HIGHER THAN THAT. 50. SO IT'S A BIG NUMBER. 50 MILLION PLUS THAT WE HAVE DEFERRED MAINTENANCE ON OUR CITY STREETS AND THERE'S A LITANY REASONS OF THAT, LARGELY RELATED TO THE FACT THAT THE STATE AND FEDERAL GOVERNMENT REFUSE TO RAISE GAS TAX AND WE MOVE TO MORE COST EFFICIENT VEHICLES OR LOWER MILEAGE, HIGHER GAS MILEAGE VEHICLES OR TESLA'S OR ELECTRIC VEHICLES THAT DON'T PAY ANY GAS TAX AND IT MAKES IT A DIFFICULT CHALLENGE, BUT YOU'LL SEE THAT ALWAYS IN OUR BUDGET DOCUMENTS, BUT THAT DEFERRED MAINTENANCE ON OUR STREET A VERY, VERY, VERY BIG NUMBER. >> THE NEXT BUDGET THAT WE ARE LOOKING AT AS THE DEVELOPMENT SERVICES BUDGET AND THEIR BUDGET IS $6 MILLION EACH YEAR. THEY HAVE A TOTAL, FULL-TIME EQUIVALENCE OF 30.4. AS THE ECONOMY MAINTAINS ITS STRENGTH, THEY IS A LARGE WORKLOAD AND THERE'S BEEN INCREASE TO THEIR STAFFING TO RECOGNIZE THAT SOME OF WHICH HAVE COME DURING THIS CURRENT BUDGET AND THERE'S SLIGHT MODIFICATIONS INCLUDED IN THIS COMING BUDGET THAT WILL BE ADOPTED NEXT MONTH. THEY ALSO CONTINUE TO WORK TOWARDS ENHANCING THEIR TECHNOLOGY SO WE'RE WORKING BETTER WITH TECHNOLOGY. THIS DEPARTMENT CREATES ABOUT $3.5 MILLION OF REVENUE, SO BACK TO THAT DISCRETIONARY BUDGET. THEY BRING IN REVENUE THAT HELPS TO OFFSET THE COST THAT ARE INCURRED IN THIS DEPARTMENT. THE NEXT BUDGET IS THE REST OF THE OUR BUDGET AND THIS IS GENERAL GOVERNMENT AND KIND OF OUR OTHER BUDGET ITEMS. SO IN THIS, I WANT TO DRAW SPECIFIC ATTENTION AND I'M GOING TO TRY TO NOT LOSE EVERYBODY. I'M NOT GOING TO TALK ABOUT COLORS AND IF YOU HAVE QUESTIONS, ASK ME. OUR CITY CLERK, CITY MANAGER, TREASURE, FINANCING, PURCHASING, CITY ATTORNEY, PERSONNEL, THEY'RE ALL DEPARTMENTS THAT ACTUALLY CHARGE THE ENTIRE CITY. I THINK OUR UTILITIES. THAT'S A COST ALLOCATION PLAN THAT GENERATES REVENUE THAT COMES BACK TO THE GENERAL FUND. I ALMOST LIKE THIS FOR EASE TO AN INTERNAL SERVICE FUND. WE ANALYZE THE COST. WE CREATE AN ALLOCATION THAT GENERATES REVENUE, BUT INSTEAD OF THAT REVENUE STAYING IN THE FUND, IT COMES IN THE REGULAR FUND AND OFFSET THE DIVISIONS. YOU HAVE NON-DEPARTMENTAL. YOU HAVE DEBT SERVICE AND ANAL REGULATION AND CODE ENFORCEMENT HAS COME UNDER CITY ATTORNEY'S BUDGET SO YOU'RE GOING TO SEE IT DISPLAYED IN THIS GRAPH AS WELL. THOSE ARE NORMAL GENERAL FUND TYPE FUNCTIONS AND ACTIVITIES THAT ARE GOING ON. IF YOU LOOK AT ALL OF THIS, IT'S $11 MILLION BUDGET. 47.5 FTE'S AND SIGNIFICANT ISSUES. THE PROPERTY SELLS ARE HELD IN OUR PROPERTY FUND WHICH IS SEPARATE FUND FROM THE GENERAL FUND, BUT WE USUALLY TRANSFER THAT INTO THE GENERAL FUND AT COUNCIL'S DISCRETION. CURRENTLY, WE'RE HOLDING THOSE PROPERTY SALES FOR FUTURE IMPROVEMENTS. THERE'S ONE-TIME FUNDING IN THE FIRST FISCAL YEAR FOR THE AIRLINE REVENUE GUARANTEE AS DIRECTED AT THE LAST BUDGET WORKSHOP. AND THE SECOND INSTALLMENT TO THE TURTLE BAY FOR THE GARDEN OF LIGHTS. AS I STATED, CODE ENFORCEMENT IS UNDER CITY ATTORNEY AND THEN THE REVENUES COST ALLOCATION PLAN IS $3.8 MILLION OF REVENUE. AND THAT FUNDS THE GENERAL GOVERNMENT OPERATIONS. SO THE NEXT PART OF THE PRESENTATION IS A LITTLE BIT OF A DETOUR FROM THE GENERAL FUND, BUT THESE ARE INTERNAL SERVICE FUNDS AND THESE CHARGE OUR ENTIRE CITY. THE PERCENTAGE IS VERY, SOME ARE AS LOW OF 20 AND SOME UPWARD OF 50 AND WHAT THEIR IMPACT ARE TO THE GENERAL FUND. FIRST SET OF FUNDS ARE MANAGED UNDER OUR IT DEPARTMENT. THE IT ITSELF IS ABOUT A $4 MILLION A YEAR BUDGET. THEY HAVE 18 FULL-TIME EMPLOYEES. YOU MOVE INTO THE GIS. IT HAS A TOTAL BUDGET OF 580, $600,000 AND FULL-TIME EMPLOYEES AND THEY HAVE A COMMUNICATION WHICH IS RADIOS IF THE TOTAL BUDGET OF $400,000.01 FULL-TIME EMPLOYEE. THE PUBLIC WORKS DEPARTMENT HAS A VARIETY OF INTERNAL SERVICE FUNDS AND THE FIRST IS FLEET. ABOUT A 4 AND A HALF MILLION BUDGET. 19 FULL-TIME POSITIONS AND THEN YOU HAVE ETUSA. THAT WORK IS PERFORMED FOR THE UTILITIES. SO NOT MUCH OF THAT COMES WITH THE GENERAL FUND. A $3 MILLION BUDGET. AND 15 FULL-TIME EMPLOYEES. YOU HAVE ADMIN. THAT SUPPORTS WATER AND WASTEWATER AND THE MUNICIPAL UTILITIES AND THEIR BUDGET IS $2.1 MILLION EACH YEAR AND NINE FULL-TIME POSITIONS. NEXT, YOU HAVE THE INTERNAL SERVICE FUNDS THAT FALL UNDER COMMUNITY SERVICES BUDGET. YOU HAVE BUILDING MAINTENANCE. THEIR FIRST YEAR BUDGET IS ABOUT $4.5 MILLION. THE SECOND YEAR, YOU SEE IT DROPPING TO 3.5 MILLION. THAT IS A RESULT OF IMPROVEMENTS BEING PERFORMED HERE AT CITY HALL OR MAINTENANCE AND REPAIRS I SHOULD SAY OF VARIOUS ITEMS WE COVERED AT THE LAST BUDGET WORKSHOP. THEY HAVE NINE FULL-TIME POSITIONS. AND THEN YOU HAVE THE NEW MARKETING, PUBLIC RELATIONS AND COMMUNICATIONS TEAM. TOTAL BUDGET OF $830,000 DOLLARS IN THE FIRST YEAR. THE FIRST YEAR NUMBER IS TO LAUNCH A NEW WEBSITE. WE HAVE PROVIDED FUNDING TO HAVE A WEBSITE THAT CAN BETTER COMMUNICATE OUR, THE CITY OPERATIONS TO THE PUBLIC. AND THAT'S WHY IT DROPS DOWN THE SECOND YEAR AND THEY HAVE 4.75 FTE. I'M LOOKING AT YOU. YOU HAVE SOMETHING TO SAY? OKAY. THE NEXT INTERNAL SERVICE FUND IS THE INTERNAL SERVICE FUNDS MANAGED UNDER PERSONNEL AND THE FIRST BEING RISK. IT'S SHARED SEMI WITH OUR CITY ATTORNEY. THEIR TOTAL BUDGET IS $8 MILLION AND ABOUT $8.5 MILLION IN THE SECOND YEAR. THERE'S SIX FULL-TIME POSITIONS. YOU HAVE EMPLOYER SERVICES AND A MILLION DOLLAR BUDGET. NO FTE'S. YOU HAVE VOLUNTEER SERVICES, VERY SMALL BUDGET, $160,000.01 FULL-TIME POSITION. YOU HAVE THE OTHER CATCH ALL. TWO OF THESE ARE UNDER CITY CLERK'S BUDGET. AND ONE IS UNDER ACTUALLY MANAGED UNDER REU. THE FIRST BUDGET IS RECORDS. ABOUT $500,000 IN FIRST YEAR. THERE'S ONE-TIME NEEDS THAT WE'RE WORKING ON ADDRESSING WITH SOME RECORDS ISSUES THAT WE WERE FACING. THE SECOND YEAR DROPS DOWN TO $427,000 AND THERE'S THREE-FULL TIME BUDGET. AND THEN YOU HAVE REPROGRAPHICS. AND THEN YOU HAVE CUSTOMER SERVICES AND FIELD SERVICES. THIS IS ELECTRIC AND SOLID WASTE AND THAT'S $9.7 MILLION AND $10.1 MILLION WITH 22.96 FTE. I'M GOING TO PAUSE AND SEE IF ANYBODY HAS QUESTIONS OR CONCERNS BEFORE I GET INTO THE REVENUE PROJECTIONS. >> ARE THERE ANY QUESTIONS? OKAY. >> OKAY. SO THE FIRST REVENUE, IT SAYS TRANSFER OUT, BUT A LITTLE CONTEXT. I THINK OF THIS AS EXPENDITURES, BUT THIS IS INTERNAL EXPENDITURES, BUT WE'RE TRANSFERRING IT TO -- FROM AN ACCOUNTING PERSPECTIVE, WE HAVE TO DO IT AS A TRANSFER, BUT THINK OF IT AS AN EXPANSION WE HAVE COMMITTED TO. THAT'S PREPLANNING AND HAVING IN THE FUTURE. WE BUDGETED $1.7 MILLION IN THE FIRST YEAR. IN THE SECOND YEAR, A MILLION FOR ROLLING DOCK AND EQUIPMENT. THAT'S POLICE AND FIRE, BUT THERE'S OTHER SMALLER NUMBERS FOR PARKS AND OTHER MISCELLANEOUS GENERAL FUND ROLLING STOCK NEEDS. THEN YOU HAVE THE GENERAL FUNDS COMMITMENT TO THE REDDING LIBRARY. 934 THOUSAND DOLLARS IN THE FIRST YEAR. THIS IS A BYPRODUCT OF OUR CONTRACT WITH THE COUNTY FOR OPERATIONS OF THE LIBRARY. THE NEXT TRANSFER OUT THAT YOU HAVE IS THE CONVENTION CENTER, ABOUT A MILLION DOLLARS EACH YEAR FOR THE CVB CONTRACT THAT LIVED OVER IN OUR CONVENTION CENTER FUNDS SO WE TRANSFER THE MONEY OVER THERE. BUT IT'S AN EXPENDITURE THAT CAME IN FRONT OF COUNCIL. THE LAST ITEM IS THE REPAYMENT OF LOANS. AT THE LAST MEETING, WHAT WE HEARD AND DECIDED TO BUILD IN WAS A REPAYMENT, AN ATTEMPT TO REPAY THE LOAN TO ELECTRIC. WE COULDN'T AFFORD THAT TO PUT THAT IN THE FIRST TWO YEARS OF THE BUDGET, WE PUT FUNDING IN PLACE IN YEAR THREE AND ONWARD TO ATTEMPT TO REPAY BACK THOSE LOANS FOR ELECTRIC. THAT'S IN OUR TEN-YEAR PLAN. THE BUDGET WE'RE ADOPTING IS THE FIRST TWO FISCAL YEARS. THE TEN-YEAR PLAN IS A FINANCIAL MANAGEMENT TOOL THAT I WANTED TO DRAW YOUR ATTENTION TO THAT. THAT'S IN THERE IN THE OUT YEARS OF THE BUDGET. >> EXCUSE ME. WE HAVE A QUESTION. >> SORRY. IS THAT THE THREE MILLION FOR THE SOCCER PARK? >> SOCCER PARK AND THERE'S SOME COMMUNICATIONS EQUIPMENT THAT ARE RU IS BUYING AND WE'LL OWE THEM MONEY. THAT'S NOT DONE, SO WE ESTIMATED THE COST ON THAT. >> THAT'S THE RADIOS AND UPGRADE. THOSE ARE THE TWO ITEM THAT'S HAVE BIG EXPENSES TO REU. AS WAS NOTED, WE BUILT THAT INTO YEAR THREE AND MOVING FORWARD, I BELIEVE WE'RE GOING TO SET IT UP TO ACCRUE INTEREST ON THOSE IN YOUR ONE AND TWO. SO, AS FAR AS THE RUE FUND WOULD GO, IT WOULD BE FULLY REIMBURSED. >> OKAY. THANK YOU. >> THE NEXT ITEM, WE CALL IT TRANSFER IN. I WOULD THINK OF IS INTERNAL REVENUE SO-TO-SPEAK. GOING BACK TO OUR PUBLIC WORKS CONVERSATION. THIS IS WHERE YOU'LL SEE THE GAS TAXES TRANSFERRED INTO BECAUSE THOSE ARE HELD IN ANOTHER FUND UNTIL WE COMPLETE THE STREETS REPORT AT THE END OF THE YEAR AND THEN WE MATCH UP THE STREETS REPORT BEFORE WE TRANSFER THAT MONEY INTO THE GENERAL FUND. THEN YOU HAVE SOME TRANSFERS FOR SOME OLD DEBT PAYMENTS THAT WERE LONG AGO DECIDED WE SELECT A SMALL AMOUNT OF MONEY FROM PARKS AND FIRE FACILITY FEES IN ORDER TO PAY BACK SOME DEBT THAT WAS TAKEN OUT IN 2004. THEN YOU HAVE A DEDICATED SALES TAX. IT'S FROM PROPOSITION 172 FROM 1993. IT'S ABOUT $273,000 A YEAR. THAT IS PASSED THROUGH TO US AND HELD IN A SEPARATE FUND UNTIL THE END OF THE YEAR AND WE TRANSFER IT. IT'S REQUIRED TO BE USED FOR PUBLIC SAFETY. WE'RE GETTING INTO MISCELLANEOUS PROJECTIONS. THESE ARE, YOU HAVE YOUR COST ALLOCATION PLAN REVENUE WHICH COMES THROUGH THE CITY. YOU HAVE THE REDDING, ELECTRIC AND AIRPORT PILOTS. THERE'S SOME UTILITY STREETS FUNDING THAT IS INCLUDED IN HERE. YOU ALSO HAVE PUBLIC WORKS CHARGES, THE UTILITIES FOR THEIR ADMINISTRATION STAFF AND THEN NDPES. YOU HAVE GRANTS AND SPECIFIC FUNDING THAT'S INCLUDED IN THIS LINE ITEM. THE NEXT REVENUE SOURCE IS SERVICE AND FEE REVENUE PROJECTIONS. THIS IS OFTEN TIMES, YOU'LL SEE THE SCHEDULE FEES THAT WILL COME TO COUNCIL IN JUNE. THIS HAS TO DO WITH A LOT OF THOSE FEES THAT'S ON THAT SCHEDULE. AND THEY'RE DIRECTLY CHARGED AND ASSOCIATED TO VARIOUS DIVISIONS FOR SERVICES PROVIDED. THEN FINALLY, THE REVENUE SOURCE THAT IS PROBABLY THE MOST IMPORTANT IN TERMS OF THE DECISION-MAKING PROCESS IS OUR TAX REVENUE SOURCES. YOU SEE SALES TAX, WE ARE PROJECTING AT 28.5 AND $29.2 MILLION IN EACH FISCAL YEAR AND THEN PROPERTY TAX, $24 MILLION AND THEN $25 MILLION AND TOT AND CANNABIS AND OTHER TAXES. THE GRAPH AND ALL THE GRAPHS, THE IDEA WAS TO SHOW COUNCIL HOW THE TEN-YEAR PLAN USES THE ASSUMPTIONS WE TALKED ABOUT AND DRAWS IT OUT OVER TEN YEARS AND GROWS REVENUE. IT HAS A CONSTANT GROWTH THROUGHOUT THE TEN YEARS AND IT'S IMPORTANT TO NOTE AS WE GET TO THIS NEXT SLIDE WHERE THE TEN-YEAR PLAN IS PRESENTED AND TAKES IN ALL THESE REVENUES. AND ULTIMATELY, WE HAVE COVERED, AS QUICKLY AS POSSIBLE, THE ENTIRE TEN-YEAR PLAN. I KNOW THIS SLIDE IS OVERWHELMING AND I WILL TAKE A FEW MINUTES TO EXPLAIN SOME KEY ITEMS ON HERE. SO THE FIRST ITEM IS OUR BEGINNING CASH BALANCE AND THEN YOU HAVE YOUR REVENUES AND YOUR TRANSFERS THAT WE TALKED ABOUT THAT ARRIVE AT TOTAL REVENUES. AND THEN YOU HAVE YOUR COST WHICH GO PERSONNEL OPERATING CAPITAL, DEBT, AND THEN WE BUDGET FOR ASSUMED SAVINGS THAT WE TYPICALLY ALWAYS MEET. AND THEN YOU HAVE YOUR NET EXPENDITURES, SO YOUR BEGINNING CASH PLUS REVENUES AND LESS EXPENDITURES, IT RESULTS IN ENDING CASH. THAT ENDING CASH NUMBER, YOU CAN SEE EACH YEAR IS COMPARED TO THE EXPENDITURES TO SEE IF YOU'RE MAINTAINING, TO SEE IF THE CITY OF REDDING IS MAINTAINING THE REQUIRED TEN PERCENT RESERVE BY COUNCIL POLICY. AND SO THE QUESTION MIGHT BE IN YEAR FIVE, WHY ARE WE, WHY HAS IT GONE BACK UP? SOME HAS TO DO WITH REVENUE ASSUMPTIONS, BUT AT THE LAST BUDGET WORKSHOP, WE TALKS ABOUT PARS AND THERE'S A 2 MILLION PAYMENT DROPPING OFF IN 24-25 AND WE'LL SEE THE BENEFITS OF THAT OUT THERE IN 25-26. SO SOME KEY TEN-YEAR PLAN INFORMATION. THESE INCLUDED CAPITAL ASSUMPTIONS AND I INCLUDED THE FIRE TRUCKS AS A REDUCTION TO THE BUILDING CASH THAT YOU SAW IN THE PREVIOUS SLIDE. THAT WILL BE IN FRONT OF YOU TUESDAY AND BASED ON THAT DECISION, I'LL MODIFY IF NECESSARY. THERE'S $1.8 MILLION IN REDDING AQUATIC CENTER CAPITAL IMPROVEMENTS IN THE PARKS BUDGET. THERE'S $500,000 IN NON-DEPARTMENTAL FOR THE AIRLINE DEPARTMENT. POLICE INCLUDES 80 THOUSANDS FOR FISCAL AND INCREASE TO ROLLING STOCK. IN THE BEGINNING IN 23-24, WE INCLUDED $800,000 A YEAR OF REPAYMENT OF REU LOANS BASED ON AMORTIZATION SCHEDULES WE CALCULATED FOR EACH OF THE LOAN BASED ON THEIR REPAYMENT TIMELINES. WITH THAT, THE TEN-YEAR PLAN MAINTAINS A TEN PERCENT RESERVE FOR THE PLAN AND DOES NOT FALL BELOW THE OTHER COUNCIL REQUIREMENT OR GO ABOVE THE OTHER COUNCIL REQUIREMENT OF 73% PERSONNEL. WITH THAT, I'LL TURN IT OVER TO BERRY. >> IT LOOKS TO ME THAT THE CITY, ASSUMING THESE NUMBERS ARE ROUGHLY CORRECT, AND THEIR ESTIMATES AND ASSUMPTIONS AND THEY SEEM REASONABLE, UNTIL 2025, THE CITY IS RELYING ON EXISTING RESERVES TO MAINTAIN ITS OPERATIONS. EACH YEAR, YOU'RE NEGATIVE. THE FIRST COLUMN IS 88.5. AND TOTAL IS $95 MILLION SO YOU'RE SIX MILLION IN THE RED. THE NEXT YEAR YOU'RE TWO MILLION IN THE RED. THE NEXT TWO YEARS, YOU'RE A MILLION IN THE RED. THEN YOU BREAK EVEN AND YOU DON'T GENERATE ANY MONEY UNTIL 2025, 2026 WHICH IS FIVE YEARS FROM NOW. AM I READING THIS CORRECTLY? >> YEAH. A LOT OF THAT IS ONE-TIME EXPENSE. SO WE'RE USING THE RESERVES FOR THE CAPITAL OUTLAY. AND SO WE'RE NOT RECOMMENDING THAT WE, YOU KNOW, BURN TOO FAR DOWN, THAT WE DON'T HAVE ADEQUATE RESERVES AND BECAUSE WE HAVE MORE RESERVES THAN TEN PERCENT THAT THE COUNCILMAN DATE THAT WE HAVE, WE HAVE THE OPPORTUNITY TO HAVE ONE TIME EXPENSES AND WE BRING THOSE DOWN ON THE ASSUMED, WITH THE ASSUMED EXPENDITURES WHILE THE REVENUES KEEP GOING UP. SO YEAH, WE WATCH THAT CAREFULLY. BUT YOU ARE CORRECT THAT YEAR OVER YEAR IN THIS BUDGET, WE WOULD ACTUALLY BURN MORE THAN WE'LL BRING IN, BUT THAT'S USING THE RESERVES WE HAVE ON HAND. I DON'T KNOW IF GREG WANT TO ADD DETAILS TO THAT. >> WOULD IT BE ACCURATE TO SAY THAT ONE BIG DRIVER OF THAT OR THE RAISES THAT HAVE BEEN GIVEN OUT TO THE POLICE AND THE FIRE AND THE OTHER UNIONS AS THE PERSONNEL COST BECAUSE IT MAKES UP THE LARGEST PERCENTAGE OF THE BUDGET? >> NO. YOU'RE CORRECT THAT THE APPROVED CONTRACTS HAVE INCREASED THE PERSONNEL DOLLARS, BUT THE NEGATIVE WE HAVE ON A YEAR-TO-YEAR BUDGET ON TOTAL EXPENDITURES IS RELATED TO THE AMOUNT OF CAPITAL WE EXPAND. SO, OUR PERSONNEL COST FOR INSTANCE, OUR 64.7 MILLION, THE TOTAL REVENUES ARE $88.5 MILLION SO YOU CAN SEE THAT PERSONNEL COST IS ROUGHLY $24 MILLION LESS THAN REVENUE STREAMS. YOU HAVE THE OPERATING COST WITH 64 PLUS 20. IT'S ROUGHLY $8 HAD MILLION SO WE'RE -- SO WE'RE $84 MILLION OF OPERATING COST VERSES $88 MILLION WORTH OF REVENUE. YOU ADD YOUR CAPITAL OUTLAY AND DEBT SERVICE WHICH IS TEN MILLION PLUS OR ALMOST $11 MILLION BY ITSELF. IF YOU WANTED TO MATCH EXACT, YOU WOULD HAVE TO TAKE OUT, SO 94 TO 88, YOU WOULD HAVE TO TAKE OUT $6 MILLION SO YOU WOULD HAVE TO REDUCE THAT CAPITAL OUTLAY BY $6 MILLION. SO YOU WOULDN'T BUY YOUR FIRE TRUCKS AND YOUR RESERVES WOULD GO UP TO 20%. >> I'M NOT SAYING IT'S WRONG. I'M OBSERVING THE NET EFFECT OF THE ACTIONS OF THE COUNCIL AND WHAT THEY HAVE DONE BECAUSE YOU CAN CHANGE ANY OF THESE FIGURES. INSTEAD OF INCREASING THE PERSONNEL COST, IF THEY WENT UP LESS, YOU WOULD HAVE MORE AVAILABLE FOR CAPITAL IMPROVEMENTS. THAT'S ALL I'M SAYING. YOU PICK AND CHOOSE THE CAPITAL COST AS THE DETERMINING FACTOR, BUT EACH OF THESE FACTORS WEIGHS INTO IT. IT'S NOT JUST THE CAPITAL COST. >> ABSOLUTELY. YOU ASKED WHY WE'RE IN THE NEGATIVE ON A YEAR-BY-YEAR BASIS AND WE'RE IN THE NEGATIVE BECAUSE OF THE CHOICE TO SPEND YEAR OVER YEAR EXPENSES AND NOT ONGOING EXPENSES. THE PROJECTED PERSONNEL PERCENTAGE, THE COUNCIL HAS A COUNCIL POLICY THAT OVERALL PERSONNEL COST SHOULDN'T EXCEED 73% OF THE TOTAL GENERAL FUND EXPENSES AND THAT NUMBER IS ABOUT 67.4% SO YOU'RE WELL WITHIN YOUR COUNCIL POLICY. THOSE ARE THE THINGS WE LOOK AT AND ADVISE COUNCIL ON AS YOU'RE CONSIDERING CONTRACTUAL LANGUAGE. >> JUST ONE OTHER OBSERVATION AND THERE IS NO EASY KNOWABLE ANSWER. IF THE STREETS HAVE A $50 MILLION BACKUP AND THE FIRE DEPARTMENT HAS A $10 MILLION BACKUP, IT'S $60 MILLION AND THIS IS RUNNING NEGATIVE FOR THE NEXT FIVE YEARS, AND THAT GOT ME BACK TO MY ORIGINAL QUESTION TO THE CHIEF AND MR. TIPPIN, HOW ABOUT SOME SUGGESTIONS. WHAT ARE WE GOING TO DO WITH THIS? ARE WE GOING TO KEEP BAILING WATER OUT OF THE SHIP AND HOPE IT DOESN'T SINK. >> THE SUGGESTIONS WE MADE WAS THE CAPITAL EXPENDITURES. IT'S TRYING TO BALANCE ALL THINGS AND WE'RE TRYING TO BALANCE OUR ABILITY TO MAINTAIN PROPER SERVICES AND RECRUIT AND MAINTAIN STAFF AGAINST THE CAPITAL NEEDS. THE COUNCIL HAS GENERALLY, OVER THE YEARS, NOT THIS COUNCIL IN PARTICULAR, BUT THE COUNCIL AS A BODY OVER THE LAST FEW DECADES HAS CHOSEN NOT TO PUT ANY MONEY TOWARDS STREETS. AND SO THAT HAS BEEN A CHOICE, CERTAINLY YOU CAN CHANGE THAT. AND AS YOU MAKE THOSE DECISIONS, STAFF WILL COME UP WITH ALTERNATIVES BASED ON REVENUES THAT WE HAVE ON HOW DO WE MAINTAIN OUR FISCAL STRENGTH WHILE MAINTAINING THOSE GOALS. >> THANK YOU. >> ONE COMMENT AND ONE QUESTION. IF I UNDERSTAND YOU CORRECTLY, AND THIS IS BEFORE MY TIME ON THE COUNCIL, WE MAINTAIN A 15% RESERVE. >> THIS WAS 10 BEFORE. THIS COUNCIL SAID WE NEED TO DO BETTER AND WE RAISED IT TO TEN PERCENT. >> GREAT. IF THE MINIMUM IS TEN PERCENT AND WE'RE USING THOSE RESERVES THROUGHOUT THE, SOME OF THE RESERVES THROUGHOUT OF THE YEARS, WHERE ARE WE AT RIGHT NOW WITH OUR RESERVE? ARE WE AT 15% OR 12%? >> RIGHT NOW, THE END OF THE FIRST YEAR UP THERE, IT SAYS 13.4 MILLION. >> OKAY. >> THAT'S WHERE -- THAT'S WHERE YOU'RE AT THE END OF YEAR ONE. AT THE END OF THIS YEAR, IF WE DID NOTHING IN TERMS OF CAPITAL EXPENDITURES AND WE DIDN'T BUY THE FIRE TRUCKS, THE NUMBER WOULD BE 20%. 18, 19 PERCENT. >> NOW, I UNDERSTAND THAT AND I SEE THAT. MY COMMENT IS REGARDING OWE -- IT'S REGARDING THE ROADS. WE'RE NOT SPENDING ENOUGH MONEY. >> I AGREE. >> THANK YOU. >> IT MAY GET WORSE BECAUSE THE STATE IS MOVING TOWARD, IT MAY GET BETTER TOO. TO VEHICLES MILES TRAVELED SO DEALING WITH THE GAS TAX ISSUE, THERE COULD BE AN AVENUE IN WHICH THEY MOVE TO VEHICLE MILES TRAVELED AND THEY'LL CHARGE YOU AN EXTRA TAX BASED ON YOUR REPORTED MILEAGE ON A YEAR-TO-YEAR BASIS. THAT COULD HELP, BUT IT COULD HURT IN TERMS IF THEY LOWER THE GAS TAX IN AN EQUIVALENT WAY. EVERYBODY RECOGNIZES AT THE STATE AND FEDERAL LEVEL THAT OUR STREET WAS SUFFERING AND BRIDGES ARE SUFFERING AND THAT'S PART OF WHEN YOU HEAR ABOUT THESE INFRASTRUCTURE PLANS, THEY ALWAYS TALK ABOUT OUR ROADS AND BRIDGES BECAUSE WE'RE NOT UNIQUE IN CALIFORNIA. IT'S THIS WAY ACROSS THE NATION. >> I WOULD LIKE TO OFFER A COMMENT ON TWO PARTS. TWO ASPECTS. ONE IS, WHEN WE WERE, WHEN WE HAD BEEN NEGOTIATING RAISES WITH OUR UNIONS AND WE BELIEVE WE STRUCTURED IT IN AWAY THAT HOPEFULLY BENEFITS THEM AS MUCH AS IT BENEFITS OUR BUDGET IN THE LONG-TERM AND OVER THE LAST SEVERAL YEARS, WE HAVE FORMED A GOOD PARTNERSHIP WHERE WE HAVE LONG-TERM BENEFITS EVEN THOUGH THE RAISES ARE ACCRUED NOW AND ONGOING, BUT THAT'S INTENDED SO WE CAN CONTINUE TO HAVE THE ABILITY TO RECRUIT OUR PEOPLE AND THAT'S WHAT WE'RE HAVING DIFFICULTY IF WE DON'T INCLUDE THE RAISES, BUT LONG-TERM, WE'RE SEEING SAVINGS THAT ARE REPORTED TO US EACH TIME WE APPROVE THE RAISE