Regular City Council Meeting, Public Financing Authority and Employee Pension Board June 20, 2023

0:00:28Of it. Okay.

0:00:31wherever you are.

0:00:35Thank you, madam. Clerk.

0:00:47hmm. The concurrent special public financing, authority, employee, pension trusts board and regular city council meeting is call to order at 604 pm. Well, the city clerk please call role.

0:01:14Next item is a pledge of allegiance to the flag or observation of a moment of silence. Please join me.

0:01:22I pledge allegiance to this

0:01:27and to the public for which it stands, one nation indivisible with liberty, and let's run it.

0:01:41The next item on the agenda is teleconference and public comment instructions. Madam Clerk, please provide instructions. Thank you. This hybrid meeting provides an option to participate in person or via zoom. Remote participants are asked to keep microphones muted when not speaking. If you are in person and logged into zoom, please ensure your device. Audio and zoom audio are muted to avoid any audio feedback.

0:02:05Those captions are available by participating in the meeting via Zoom. The members of the public who wish to provide oral testimony. The mayor will announce the time for public comment on each applicable item in person. Request will be heard, first followed by remote request to speak in person. Requests can be submitted to the city clerk by submitting a speaker card.

0:02:24Remote requests can be made by selecting the hand icon and phone request can be made by Dialing Star. 9 instructions are provided on the meeting agenda and will be displayed during each period of public comment. Meetings of the City Council are subject to the Brown Act, and are held for the purpose of confing city business. The adopted rules of order and procedures, specify that public speakers address the city council in an orderly and respectful manner.

0:02:48proceed their comments with their name and city of residence, and be so respectful of time limits policy prohibits yielding time from one speaker to another. Thank you, Mayor. That concludes my instructions.

0:02:59The next item on the agenda is Council staff communications. I'm going to take a moment of mayoral privilege and just read a statement.

0:03:09As you know, we, as a council, express our community values most often through the approval of proclamations in support of the diversity, inclusivity of our community, from Juneteenth to Asian American Pacific Islander Heritage month, Jewish Heritage month, loving day, and Lgbtqi a pride month.

0:03:28These are just outward expressions of what is important to us as a community that we value and support people of different religions, ethnicities, nationalities, genders, and sexual orientation and abilities, because they make our city more interesting, richer, and safer.

0:03:47We are as united in celebrating our diversity as we are united in defending it.

0:03:55Please keep in mind that this is a city business meeting. The city Council has adopted rules of decorum to ensure that meetings are conducted efficiently and effectively, and that all members of the public have a full, fair, and equal opportunity to be heard.

0:04:11All remarks should be addressed to the City Council. Please do not use profanity during your comments.

0:04:18I would also like to highlight that June eighteenth was declared by the United nations as an international day for countering hate speech. While the city of Ford speakers the right to be heard. The city has a 0 tolerance policy for discriminatory and harassing conduct.

0:04:35The city denounces any hate speech that may be vocalized in public comments. Speakers making public comments are not expressing the views of the city.

0:04:46Thank you.

0:04:48And now we will start with the staff update on Sp, 1,383 cart swamp.

0:04:53Thank you. I'm Karen Pink, as the city manager, and I'd like to introduce Christina Laird and Mario Gonzalez.

0:05:01We will try to avoid a Mario cart joke, but too late.

0:05:06Take it away, Christina. and thank you. Manager, pink us. Good evening, Mayor and City council, and Christina Leard as as mentioned, and this is Mario Gonzalez, our operations manager at the recycling center, and we're here this evening to show you our new garbage and recycling carts that are going to be rolled out to residents, beginning July the week of July tenth.

0:05:28The reason for this cart change is due to new State legislation. Sb. 1,383. That's requiring all garbage carts in the State to be black or gray and recycling carts to be blue and organic, so green waste carts to be green.

0:05:42So our carts in the city were going to be swapped out, the gray recycling carts going to be swapped out for a blue recycling cart, and the blue garbage carts going to be swapped out for a black garbage cart, as you see here in front of you.

0:05:58The cool thing about these carts is

0:06:01the in mold labeling that's on the top. It's like it's not a sticker, so it's not going to peel off. It's going to be long lasting, and withhold weather. and it's in molded in the plastic. so that's a sample of one of our actual carts. They're going to be rolled out. garbage cart is just a sample at this point. It's not stand and thinny markings, but that's the color of the carts. this is a 20 gallon, and that's a 64

0:06:27So starting July tenth is when the rollouts gonna begin and residents will have their on the normal service day. their garbage cards, and the second cart will be serviced and emptied. They should leave the mount of the curb and some other vehicles will be coming behind to leave new carts, and then another round will be coming back to pick up the old carts, so it will take a few weeks for this process to to roll out

0:06:56All households, and Elsa Rita will be receiving a postcard next week, as is in front of you. a draft on the dias. And also we have our frequently asked questions. Up on the website. We we went long at that long and hard about questions that my residents might have about this process and included them.

0:07:18and also, when the carts are are delivered, that postcard will be attached to it as well.

0:07:24and East Bay Cemetery is leading risk effort, and we are all going to be at the Fourth of July festival. with these sample carts to educate residents on what's coming the following week?

0:07:36And that concludes my update.

0:07:43Okay, any comments? Councilmember? Oh, thank you for that. And and great to see you both, Mike. My question. any changes with the green, Ben?

0:07:54No. Your green then, will be staying the same. It is compliant with State regulations, and the cart still have useful life to them.

0:08:09Where can they pick that up? They can pick them up at the recycling center? we have them for all residents. and I believe we do offer a drop off service for anyone who is unable to pick up at the service. They would need to call the recycling center for that request.

0:08:28Okay. no further comments from us. Thank you very much.

0:08:34That's all I have, your honor. Okay. are there any announcements from any council members.

0:08:41I'm some member. Thank you so much. Me and I just wanted to take an opportunity. And it you, you know, you make a great statement about hate speech, and I certainly appreciate that to you. for making that in the soothing or what we will appear in those 3, though I just want to to address the coward who's sitting in the hate field. If it's called pride, you know I don't know I'm going. I can't. I cancel email so. But

0:09:07there's a question about so to the we that to be Lgbtq, you can not believe that it's going to trade very, very close to the separation of Church and State, so that the

0:09:20we support our people. And just to ask, we support our people, and just to ask for we support our people, and just to ask for me, we can support. We support our people. And just to ask for me, per. Personally.

0:09:44I'm a

0:09:51you know, Jim. You popped out totally pieces of the but here in California, you understand. But I I think you will. I think you know I charge that about 2 pets

0:10:02it's drawn to.

0:10:20I think it was, too, and I think it's 6,000 people know some stuff

0:10:26so you can.

0:10:41How much Council member for Delhi. Yes.

0:10:45thank you. I just wanted to say next month, instead of coming to our city council meeting, which I won't blue one on July 4. I'm hoping it'll come to the July Fourth

0:10:55one World Festival. it's a second year in a row where we will be having contributions and sponsorships that support our July fourth. There's more time to contribute to help us on our website.

0:11:09and at Srida Park there'll be a chance to see. I just want to remind people to see neighbors, to hear great music, eat diverse food, connecting booths

0:11:18with those elsewhere, and and others who have something to say we teach us.

0:11:22and certainly this year we will be dedicating the event to Chris Strachwitz and the music that he saved, and the story that he brought to El Cerito at down home music. So that should be a great festival, and it's coming up very soon.

0:11:37Secondly, I wanted to take this time to honor and congratulate the Resident, who's globally retiring after serving 12 years as principal at hiding elementary school.

0:11:47Linda Martin Pakamoto was a full time, Mom, with 3 kids and a full time school volunteer when she decided at each 40 to go back to college, Uc. Berkeley and St. Mary's and get 2 masters degrees and and then begin teaching at Mayor Vista, my grammar school. Here in El Cerrito, Castro, Elementary and Port Law Middle School, until she became principal at Harding elementary.

0:12:12We wish Linda and Marty her husband, the best, and I think we don't need to worry about them because they're in Italy right now, traveling and having a good time starting the second chapter of their lives.

0:12:24Good luck to Brenda. Thank you. Council. Member for Delhi.

0:12:30Okay. I have a couple of announcements. On June eighth I gave my endorsement, along with other elected officials, in support of a proposed regional housing bond for the November 2,024 ballot, and for the second quarter of 2023, covering April through June.

0:12:48I would like to recognize the elsewhere, though centenarians, may Honda and rose Tohara, who turned 100 Florence Petsola, who turned 101 ruby Adachi, Hiramoto and Esther Tani Zawa, who turned 102 with the mayoral certificate of recognition.

0:13:09and that concludes my comments.

0:13:12The next item is oral communications from the public. Now is the time for members of the public who wish to provide public comments regarding matters not on the agenda consent items and presentation items. In-person speakers can submit a speaker card to the city clerk and remote speakers who use the raised hand feature to request, to speak.

0:13:32Please remember to identify yourself and your city of residents at the beginning of your comments, madam Clerk, please proceed in Kamir. I'll quickly announce that we received written public comment from Cordel, Henry and Robert Hughes as chair of the Urban Forest Committee by the advanced deadline. Today those comments have been posted online with supplemental materials and provided directly to council.

0:13:55and at this time here I do not see any request to speak in person or remote. hey? Thank you, Madam Clerk. The next item is adoption of the Consent calendar, which includes the following items.

0:14:08approval of minutes.

0:14:10National night out. Proclamation celebrating Sakara Kai's fiftieth anniversary, and recognizing its contribution to the community of El Cerrito. Temporary suspension of advisory body pre-meeting requirement

0:14:23Sb one, the road Repair and Accountability Act list of projects for fiscal year 2023, 24.

0:14:31Authorization of Gap loan agreement with Mayfair affordable Llc. For the development of 1 1 6 9 0 Sam Pablo Avenue

0:14:39Amendment to Professional Services agreement with Agnes Pavas for temporary support for the finance department, and those are the items

0:14:48out of an abundance of caution, I will be recusing myself from voting on consent. Item 7 F. My employer, community economics, Inc. Is a nonprofit that advises regarding affordable housing, finance and development. One of our clients is bridge Housing Corporation. Community economics is not advising bridge about the plaza. The

0:15:09Mayfair affordable housing development and has no financial relationship to the project. If the item is requested to be pulled by another member, I will leave the room for the discussion and vote. Otherwise I will

0:15:21vote on the Consent calendar, and ask that the city clerk reflect my recusal for this item in the minutes. Are there any items that you Are there any brief questions or request by the Council to pull items off the consent calendar?

0:15:35I wanted to make a brief statement, okay, and this is regarding 7 C, and that is celebrating the fiftieth anniversary and recognizing the contribution of Sikkura Kai

0:15:48and back. When we lost our senior center. I met with the grips of Kai to make sure that they were able to continue and but meet in a new location, and they since then they've been meeting at Alvarado the former Alvarado Elementary School, and it's great to see that they are celebrating their fiftieth anniversary. And

0:16:16I owe this to many of the residents. and many of them are still with us And Mrs. Zoogie, who's a a mother of Stevie, my my classmate, and Kimi Honda, who's no longer with us. They were very instrumental in working with me and Tom Panis to make who was a former board member of the school, to make sure that

0:16:45they were able to find a low, a new location. So just want to say congratulations to Ben, and the all the good work that they do when providing meals, and the media stand homebound.

0:17:00thank you.

0:17:02Any other council member for Delhi? I do have a question about 7 F.

0:17:07just a brief question nothing. I'm not opposed to it at all. Obviously. I I was just wondering why the count why, there's problems with county money coming through. There's any response to that. Why, we have to fill in this gap at this time.

0:17:26Good evening, Mayor and Council Members meetings. I use to show you the housing manager. good question. It is a new funding source from the State. That is Funnel the the county, and unfortunately, the Housing and community Development Department is a little backlogged. they are doing a lot of advanced planning efforts, as you know. So we're hopeful that those loan locks will come through soon, but until then, We want to bridge the gap and allow them to continue through the PE plant review.

0:17:55And does it mean that we will get our loan money back sooner, because so this is not A part of the 350,000 pre-development loan that's intended to be more of a permanent financing. This is merely just a tool to get them through until they can get that transfer funding from the State that we can do that. I remove the consent. Calendar.

0:18:17Okay. Is there a second second second move by council, member for jelly? Second by Council Member Kinto I did send some typos to city managers, so I'm assuming that they are included.

0:18:30The changes are included. So we have a motion in a second, I can you clarify what item you're referring to? Oh, on the consent calendar on the minutes I had some. I found some typos, so I had, for did those 2 city manager? I did not receive that information. Could you summarize that for me briefly, so that I can make sure it gets recorded in the minutes.

0:18:52It looks like, perhaps the city manager didn't see it either.

0:18:56Okay, so the first is the minutes.

0:19:02Oh.

0:19:05June sixth.

0:19:07item number 10

0:19:11wic tac is misspelled, and in the last paragraph my reporting on attendance ends in a comma, so I don't know if there was a sentence that was left.

0:19:21I'm corrected. and then

0:19:28on 70. My last name is misspelled on page 19 of the packet.

0:19:35so I would like my name. My last name is my.

0:19:42those were the 2 typos.

0:19:45Thank you. Noted, and what those will be. corrected before the final version.

0:19:50Thank you.

0:19:51So with the typo corrections. There's a motion in the second, all those in favor.

0:20:03hey?

0:20:07The next item is under policy matters, management and confidential employees. Resolution. maybe please held the staff report.

0:20:22Good evening, Mary. I'm City Council. My name is Shannon Bassy, Senior Human Resources analyst with the Ed in hearing resources. I have before you this evening a request to adopt a resolution to modify salaries benefits and conditions of employees for the city's management and confidential units.

0:20:41currently, there are 32 management confidential budgeted positions who are governed by this resolution. which is approved by City Council annual.

0:20:52These positions in this group generally include executive assistance to police and Fire, Hr. And it specialists and Senior Positions, supervisors, managers, and our department heads.

0:21:05The following are the major highlights proposed in this agreement for the resolution effective. Each July 2,023 and July 2,024, there will be a 3% salary increase for any classification within management confidential.

0:21:23In addition, we did propose a bilingual pay at $100 per month for those that qualify through passing a proficiency test and lastly, the addition of a master's tuition reimbursement to our tuition reimbursement section and the Max would be set at 3,500 both by and masters. Tuition reimbursement would align with our other ml us. So we wanted to include that in closing. I like to thank management, confidential employees for their leadership and flexibility while serving the city

0:22:02with the said that concludes my report, and I'm available for any questions. Great. Are there any questions from Council Numbers

0:22:11Council member for Delhi. Yes, I just

0:22:15remind me about the bilingual pay. There's no language in there about it being applicable in our distinct geographic area. So if someone knows how to speak Norwegian.

0:22:28they get a hundred dollars extra a month. If they would pass the proficiency proficiency test, they would be eligible for that bilingual pay. One of our goals as a city with many of our departments, is to have a variety of languages so

0:22:42so that we do have employees on on hand to translate, if necessary. but yes, that language would qualify. There's currently no limits on the types of languages. And who does the test? It's not us giving the test. It's an official group or something that is correct. We have a third party company that we work with.

0:23:02They conduct the test and provide us the score.

0:23:05Thank you

0:23:09right.

0:23:10Any other comments I would just like to say, Thank you to management and confidential for really stepping up and keeping the city going while we all work to get the city back into a a sustainable fiscal

0:23:23condition. And I know that this is one of the last agreements that we're going through. And really all the staff is how we got here today to to this budget

0:23:34that we can

0:23:35look at ourselves and say, How is our financial position? And it is stable. And so thank you to management and confidential. Thank you to all staff for really pulling together and making this happen.

0:23:49Thank you. Thank you.

0:23:53Hmm.

0:24:02And hey, now.

0:24:06now it's a time for members of the public who wish to provide public comment on this item in person, request to speak and submit a speaker card to the city clerk and remote speakers can use the raise hand feature to request, to speak. Please remember to identify yourself and your city of residents at the beginning of your comments. City clerk, please proceed.

0:24:25Thank you, Mayor. We did not receive any written public comment for this item, and I do not have any request to speak for this item. Okay, thank you. Are there any further council comments?

0:24:36Hey? Is there a motion to approve? It seems to prove

0:24:41motion by councilmember? King, till I can then second by Mayor pro Tim, Red Nick. I have a motion, and a second. Madam Clerk, can you please call the votes all those in favor, Pci. Any opposed motion carries.

0:24:56The next

0:24:57item is city council kept public financing, authority, employee, pension board. Approval of the city's fiscal year 2,02324 proposed budget and spending authority by fund for the city employee, pension board and public financing, authority and approval of the fiscal year 2,02324 annual gan appropriation limits. May we please have the staff reports

0:25:21right

0:25:27ready. Wonderful! Alright. Thank you, your honor Mayor and council members again. I'm Karen Pinkis. I'm the city manager, and I'm delighted to present you a balanced stable budget for fiscal year 2,02324, as you know, this was discussed previously at the last council meeting, and we have a short presentation to give you a few updates,

0:25:50and answer a few questions that have been posed by council members, and also introduce you to the Financial Advisory Board recommendation and chair for Hide Farm, and is on the zoom call and we will call him

0:26:03in a moment. so Will, if you could go ahead.

0:26:08Thank you. of course. Just to kind of recap with the budget process. This is where, at the very bottom. Now, that's bolded. this is. We've been engaged in this process since beginning in February with the city starting with the City Council retreat, the mid-year budget amendments. We've worked with the community. We've worked with the Financial Advisory Board. We've had several study sessions with the City Council

0:26:31to identify and determine the priorities by which we created this budget. So it is. Add to the city Council's direction that we have provided all of this information to you in the Budget document.

0:26:47so as a summary of updates from this from the June sixth council meeting. So, as I had indicated to you during the presentation. There was an error in the finance software that impacted last year's budget that was shown so the prior year encumbrances which are purchase orders were being carried forward, and correctly. That was about a

0:27:10half a million dollar error that flowed all the way through into again, this is the current year's budget, not next year's budget. So we made that correction. so now, the budget document that is online that you have seen.

0:27:24the link that is online is now updated in real time with that information. we've implemented an adjustment to account for recreation revenues. And the same year as expenses. This is at the something that we've talked with our auditor about.

0:27:40for those of you who were, I think, a councilmember. Fidelity and Council Member Kinto were on the Council years ago, when this came up with our payroll and doing accruals, and figuring out in which fiscal year and how it affects It also had an impact to our fund balance.

0:27:57But the idea is that we are recognizing the revenues in the year that they're expended and the expenditures when those when this happens. So, for example, in recreation, we do our big summer camp registration, and we get all this money in, but we're spending it in the next fiscal year.

0:28:15and community development is very similar. We might get a building permit that might actually take a couple of fiscal years to go through the whole plan check process and spend down the revenue that we're getting in. So we're trying to work to recognize the revenue when the expenses happen in the proper year. So there is a bit of an adjustment. But it's not going to have a huge impact and will do you have any additional thoughts on that.

0:28:38You were working with the consultant on that one closely? No, it really doesn't have a material impact. Essentially, it's just the difference in fees for recreation services from one year to the next, which, as you know from the master fee schedule, is typically like 3 or 4 and so that's the difference. You see here. in fiscal year 24, the impact, the only change we had to the general fund from the last June sixth version, and today was $12,000.

0:29:02And that's just the difference in anticipated revenues for recreation. But for like 24, the Fy 25. Actually, right? So when the services are actually provided. So this does have. If you see what it says, bottom line, this does have a $12,000 reduction in the revenue number that we gave you. So we're still at about a

0:29:2090 to $100,000 surplus that we're looking at.

0:29:23We have adjusted how forth of July donations are reflected. as as councilmember, Fideli referenced, and he and Council Member Quinto are the the leaders of the efforts. This year we've done a wonderful job, and you've done a wonderful job we have have. We've reached our goal. Chris, we're close

0:29:44as long as everyone sends in their money. So If you were in your room number at the mid year budget process, we created a donations fund that for all of the different donations that we get throughout the year. But in particular we wanted to address where

0:29:59those Fourth of July donations would come in because we've made our goal. That's great. So what we're gonna do is we're gonna put the expenses for Fourth of July in that fund so that they will directly impact the expenditures with those revenues. So if there's an additional general fund impact which we hope we won't be Then we would either make a transfer. We would make pay that separately, but that's to try to

0:30:22a separate that out to make it more trackable.

0:30:25And we also address media adjustment in public works. So again, the bottom line is, and this is all flows through all of the charts that are that you've already seen within the updated budget document, the link that you were sent. so it's a $12,000, $392 reduction in general fund revenues which is not very material, and a $50,000 increase in Fund 2 to 5, which is the donations fund. So that's the differences from the last meeting. And I appreciate your patience again, as we're working through this new software

0:30:53and without a finance director and without a senior accountant so, and or a budget manager.

0:30:59But we have. Well, so thank you. Well.

0:31:02okay, so next slide. So this is a summary of all funds. And again as I pointed out at the last meeting, and we look at that in Member Budget for 2223. That is going to be much. That's going to be very much reduced by the time the act for comes out, because, as you know, we had expected to try to go to board for the Complete Streets Project, which is at a good $1012,000,000 C. I. P.

0:31:29expenditure that we did not get to take care of this year, but we are actually working on it closely, and if that we're really close to going out to bed right? So we will be awarding that really, really soon. So that's why that's all carried forward to the next year. So even the next year we'll see it, it's gonna look even different. But the

0:31:47the under budget number totals will be much, much less than that. but they have been carried forward to 2324. And so that's where you see that increase in expenditures. A huge amount of that is is the carrying forward of the complete streets. Project all the grant funding and everything that went with that.

0:32:08Okay. this is

0:32:12This was one of the sides that was really too small to see at the last one so upgraded it. So you can see a little bit more of a depiction of where the funny balances are projected to be, as of the June thirtieth, 2024. However, when again, when you go all the way to the bottom that is going to change as of next year, because we haven't expended all of the money we had expected to out of the cip and some of those other funds. So, but this is as of

0:32:41the morning time that was frozen when we pulled these out in order to to use the amended budget going forward into this year's budget, and again, when the ak for comes out, and when our auditors and just so, you know, we as a staff did an Rfp for a perman 8. Well, the next law but probably about a 5 year window for our audit firm. we received 5

0:33:075 responses we've interviewed those last week. We're checking references, and we'll be bringing you a contract for and depending on it from for the next 5 years. At your July meeting, so we'll be working with our auditor very closely on all of these

0:33:24next.

0:33:26And here's the general found, and again you can see the deal with. Budget was corrected. but we do We do expect that we will have a at least a small surplus this year, and that is still Tbd, But we're training very well. I don't believe we're going to make that expenditure budget, so I hope I did not completely jinx it. But right now we're doing well, we are at about 80.

0:33:52I'm gonna say, 87 85, 87% of expenditures. And we're at almost 95% of revenue. So we're doing really? Well. so we're in the next fiscal year, as you can see. Nope.

0:34:03can you go back a little just at the very end there. 48.5,000,141 for revenues, and 48.4 million for expenditures, and that is again about a hundred 1,000. I think it's a $93,000 surplus that we have right now. But as we've been telling you, and as we told the Fab on Thursday. At their meeting we were, as you know, we were very conservative with our revenues, and we're trying to make sure that we

0:34:31are staying with our ongoing expenses or staying within our ongoing revenues. So it's a it's tight, and we all that. But we also have some very optimistic expectations of where revenues will end up going, and so we will, of course, be monitoring as closely as we have been all year and the past couple of years, and we'll be bringing this back to you quarterly on how we're trending. But we do your adjustments.

0:34:53We will be ready to do those after those startup accounting. But yeah.

0:35:00okay, this is the stress test. when we were requested. And so, as you can see that we what the mayor had requested. and we actually the Fab, I believe was This as well to take a look at those

0:35:17to increase what we have done is in the original budget. presentation document. We seemed about a 3% across the board increase. And that's kind of where the trend line tends to go. There's been some fluctuations, of course, but kind of as an average. That's where we've been now. Inflation has increased.

0:35:36although they did not increase rates this week or last week, or whenever. So that's a good sign that's good for everything. Hopefully, things can kind of calm down a bit.

0:35:45But if we

0:35:48wanted to take a look at increasing that inflationary rate to 4%. And so, as you can see by all of the different scenarios there. Scenario, one is where we are where we would end up as of 2728 at a perhaps a 20.3 million dollar telephone balance.

0:36:07sorry to what we've also provided to you as of last week, with increase.

0:36:14being able to show the the one time

0:36:17list the Pr one time expenditure project list that will come to you throughout the year. We're not asking for that now, and we're also not. It's not in the budget document, but we will be bringing those throughout the year when when we're ready to ask the City Council for approval, and a appropriation that gets us by 2728 to an 18.6 million dollar fund balance. Again, this is all things being status quo

0:36:42So scenario 3 and 4 are the same pests, but with 4% expenditure increase as opposed to a 3% expenditure increase. So of course, it makes a big difference there. As you can see, however.

0:36:56we're still well above what the trend line with the dotted line at the bottom is the Gf. A roll recommended 17% minimum gener of new balance. And so we meet that

0:37:10very well. And again, this is not counting any additional revenues, any additional, anything else. But

0:37:17I think the the lesson that we've all certainly learned over the past 3 years. Especially is that having that general from balance, having that you know, we made it through the pandemic without a general fund balance, and it was incredibly difficult. Now we have the ability to weather us to really weather a storm, should we have one? And and again. That's something very much to be proud of. And thank you, Mayor, for your words earlier.

0:37:43because I agree the staff really worked hard in order to make that happen. with, of course, your leadership. But you know, with the Fab also, and as you'll see in the recommendation, making sure that we have our eye on that bottom line always. So we don't get let that let that go. And so this is a really good, I think you know the the term stress test. I like it.

0:38:07that we can run a building. Different kind of stressed us. Of course we could do all of that, but I think that this is

0:38:14is it? While it shows conservative revenues? It's also a very reasonable

0:38:19assumption to be able to take a look at it, to show that we're still in the real position. We're still having

0:38:25maybe 15

0:38:27on app since. So again, the fund balance is going to be a separate discussion, but I I think that sure would. It's a it's a it's a

0:38:46all right. There are also some questions about the real property transfer tax. And yes, and you, you and I put this together, so we'll please feel free to jump in one of the interesting things that we've seen. There's definitely been

0:39:00a

0:39:02property. So I think that's

0:39:05that's like surprising to me.

0:39:08What's interesting is that the prices have started to have have really kind of held in. I just wrote a report yesterday that you know they they've kind of new teams throughout the. But certainly now, which is just what

0:39:22definitely helping the Royal property transfer tax because it's less property sold because of the high number, the high price number. We're sort of still maintaining ourselves. So what we're looking at it's it's not an entire surprise. We're we're probably 93% of a hundred. That's what we're projecting right now as a whole, other people say smooth. But we have the not that you transfer what we're looking at about from

0:39:53instead of 4.3 again. And in terms of for all of our are going really well. So this isn't going to have a detrimental to our bottom line. but we're still with the ballpark.

0:40:06This is just going to show that that we're Christine.

0:40:12Okay, you can see some of the sales there that up to the folks there we're still

0:40:20to like. I said. The house house. Cross Street for me is for sale. There's a lot of same tone as I've been driving around, so we might have it. This is kind of the peak starting to be the Peak sales season, so June could be significant. We don't

0:40:34after we can see, but I think we've been here for $10, and it's not going to have a detrimental effect on our overall revenues, which is really good.

0:40:45Slide. Well, it shows a little bit more detail compared to the previous fiscal year. So as you propose.

0:40:54it doesn't.

0:40:58it's it had our bets a little bit. If if the prices go down, or if there's less if there's nice

0:41:10But, as you can see.

0:41:12it's about 14.

0:41:16There's a piece that gets us to 4.3. So that would be the lowest average of the last 3 years. But next year

0:41:30we have. So we're trying to be super circular to that, too. That's why it's one of the first years

0:41:36transfer text that I haven't increased it. So we're keeping it flat. But we're watching. And we'll see what happens in the video.

0:41:46Okay, next, okay, is can you? Holly? Can you pull

0:41:51chair format, too? Yes. it's we're on the Financial Advisory place, too.

0:41:59The term staff will resign if you will, but I need to revis your there's special fifteenth last Thursday to consider the budget. We had actually a really great discussion.

0:42:15They the that was very. They had really good questions. We talked for a good 2 h. They asked all sorts of questions.

0:42:24I will speak for the chair. I felt like the at least with the budget. They were pleased with.

0:42:31that everyone had done but it fully, and, as you can see very concerned apple general fund balance and making sure that the general month balance, it's maintained. But at this point you'd like to. introduce your recommendation.

0:42:49Farhad Farahmand: Sure. Hi, good evening, honorable council. Thank you so much. Oops. Alright!

0:42:56Thank you so much for Hearing this item, and having Fab present here. I appreciate the time. Can you hear me? Okay.

0:43:04yes.

0:43:05Farhad Farahmand: Okay, great. So yeah. I'll do my best to convey the the Fabs recommendation.

0:43:11when we, as as part of the discussion that Karen mentioned when we were discussing through it, we noticed about 1.6 million and capital expenses that were being proposed as kind of discretionary. Throughout the course of the year capital improvement projects that would then come back to council.

0:43:34and that had not been built into the budget. And so we noticed that we noticed that we had a very healthy general fund reserve and balance. And we wanted to kind of think about those 2 items and then have council consider this recommendation concerning those 2. Those 2 pieces.

0:43:54there are 2 conditions here. I'm gonna start with, actually, with the second one. I think that that's probably the better one to start with.

0:44:02this is relating to those one-time projects expenditures. We want to ensure that the general fund balance is maintained. that it does not. is not withdrawn from in order to fund those one time project expenditures. That's our recommendation. for this council.

0:44:25you know we we would, with the scenario that every kind of budget year there's a little bit of one time expenses and that would eventually draw down the project. The the the General Fund reserve balance every year we kind of chip away at. It is not a desirable outcome. We want to make sure. That's kind of we. We? We're using surplus for those purposes.

0:44:46and it's secondarily considering that we have a very strong general fund balance.

0:44:53we thought that this opportunity should not be missed to fund, but to to maintain that jail from balance first and foremost, at at at least, the Geo. Gfoa level. But what's what's required as part of our minimum comprehensive financial policies, at least at 10%. Or if you want to be aggressive, 15, since we dropped below 10% recently

0:45:14at a 15% level for the general fund balance and then for 3 months of operating expenses per our emergency or disaster recovery fund financial policy requirements. We happen to have

0:45:29exactly the amount to maintain those 2 funds at A at the satisfactory level as required by our current conference to financial policies. We recommend that the Council

0:45:40Fund

0:45:41both the the, you know, keep the find at the at the Balance Reserve currently, but also allocate the the additional funds to the Edrf.

0:45:51In particular. So that should that was what we recommended, this is a tremendous opportunity to do so. We will have tremendous

0:45:59You know, we'll be very financially secure with the with this decision. So I hope that that was clear enough, and I'm definitely happy and available for any additional questions with regards to Fab discussion. Thank you.

0:46:12Great. Thank you. Chair for our mind. And so, from a staff perspective, I you know. And Alex, you can certainly jump in as well if you feel We were comfortable with this recommendation, for a couple of reasons. And I'll start with number 2 as well. number 2. I think that again, the Fab is is definitely and rightfully so. wanting to make sure that we maintain the high level of reserves that we would be all things being kind of status core where they are right now that we're looking at about a 30% fund balance. So I think

0:46:4633% is a very ready target in goal. And I think that should

0:46:53should be revenues coming higher, or if depending on how we end this fiscal year, and what the ending fund balance will be. I think that this is definitely I mean, certainly I think it's achievable. But if certainly a a a goal that that is is worth having.

0:47:10as far as Number One, again, I actually agree with with the chair as well, that this is something that the that the Fab has been consistently asking of the Council since the policy was approved in 2,019. So this is.

0:47:26This is not a new recommendation from the Fab, but we do have a very robust fund balance. Having said that, the the that is not on the that is not for the Council to be. we. The Council will not be discussing that tonight. It is indeed a separate

0:47:43action that the Council would take, and the Fab. And you know, if I if you want to jump in here as well, the Fab is working on our updating and preventing a looking looking to finalize a recommendation to the Council to revise

0:48:00the comprehensive financial policy with respect to the General Fund Reserve and the surplus, and as we had another good discussion about that, that was also on the agenda on Thursday.

0:48:11I believe they're on a really great track, and we all agreed that we have a new finance director starting in July, and we will have our audit firm on board hopefully very soon, and once the Fab provides their recommendation to revise the policy, they would do that at their July meeting.

0:48:31and then we could bring that to the City Council at the august meeting, so I believe that that would be perfect opportunity for the Council to discuss allocating the fund balance, maybe changing the policy. Also, I know that the Council wants to do the section 1, 15. Trust, so that also has to be within the mix of the discussion of where the fund balance goes. and so we'll have. we'll have a really, I think that number one is

0:48:57again, a great target, and that will be for the Council and the Fab to talk through after the policy. And after we have our new finance director. So we're targeting August for that discussion. And cher, did you have anything to add to that?

0:49:14Farhad Farahmand: no, thank you, said you manager. because I'll just I'll just mention that. Yes, this this recommendation number one is considering the the policy proposal we are going to bring to you in August. So they're they're working together.

0:49:28Thank you. Thank you. Thank you. Chair very much. Okay. And then

0:49:35where we at Summary, okay, just to sum up we brought you a city. we brought you a budget. We worked really, really hard to bring the city council and the public a budget that reflects the priorities and all of the feedback from the community. From the Fab. As we've developed it.

0:49:52we believe it aligns with our current city strategic plan and the new one. Tbd, that's coming. It does maintain reserves at about 30% even with the one time expenses. But as we've discussed, and as even the chair referenced.

0:50:06you know, that is well, we're doing what last year's surplus was. So it actually does follow the policy that you may be getting to and it allows for the one time expenditures to be forward with one time revenues. And, as we've also said, many of those capital projects that have to do with infrastructure

0:50:26things like the license rate leaders for safety. Those are also within the spirit of the American rescue plan. That. So that's also we wanted to to make sure that we're

0:50:37utilizing that that it was intended. It does make you investments in Capitol, deferred me.

0:50:45and of course it allows us to continue providing key services to ensuring fiscal sustainability.

0:50:51Alright. So the next steps tonight, if there's any questions, comments, or additional direction, or if there's any additional special meetings as needed. That's up to the Council. If adoption of the budget needs to be completed by June thirtieth, we do have before you tonight, or

0:51:074 resolutions for your consideration, and one is for the city of us to Rita, and the spending of the Jennifer, and all of the special plans separate resolution for the public financing authority.

0:51:21the Pension Board. So I do want to make sure that sadly had indicated a few meetings ago.

0:51:33yeah. last.

0:51:40He was the last member of the Pension Trust. This is the trust, the pension that the city offered prior to going into purse. So that was in like the fifties or sixties. I'm not even forgetting what the date was, but that's when we went to persist. So he the last, and so sadly he has left us.

0:52:01You do not accept any more people that into this pension so Pension Trust will eventually be for you, because we have not dissolved it yet. It's a so we should asking for a spending authority of 0.

0:52:14so that's why that is. And we began, as you know, whatever you we're going to be able to set by State law, but to spend money that is based on our population. and State parameters for

0:52:30They're spending authority, which we come in well below. They can limit. But each year we recognize that limit. again, it's require the state law.

0:52:40and then the last slide. One more time. I just want to thank the residents and businesses of user for their engagement and thank you all for showing up tonight. That's nice. and for those of you on the call I I appreciate We've heard a lot from people this year, and I'm

0:52:57it. It's It's very much a pleasure to be able to work on a budget where we can. We? We we can focus on the things we can do instead of what we can't. So I'm really appreciative of that. I want to thank the City Council, of course, for your leadership and your diligence, and and particularly near Royama. We've had some extra meetings over the past few weeks, so that we can ensure that you know that that this budget really does meet all of the Council's goals. So I want to thank you for that.

0:53:25Fab, thank you. Chair for our HUD Fairmont and all of the Financial Advisory Board again. We had a great meeting last week. I feel like we're we're really on a good track. And and I really appreciate their feedback. I appreciate their review, and we'll continue to work together. to get, you know, our policies in line with the desires of both of that and the Council City staff. I thank you a million times. I'll thank you and many more. I am. I am honored to work beside you.

0:53:55and especially the executive team, have put in extra hours. And will will the Magic Budget person this year? Again, in the in the absence of a finance director. You have just been outstanding, and I couldn't be more proud to work with you, Alex. You've been using Shannon Agnes, who is a our consultant who's leaving us at the end of this week, but she has stepped in and done her job, helping us with all the accounting, and Chris Bowen, from Vokertilli has also been a valuable resource for us.

0:54:24So the budget back you in again. I'm glad you are locate. We're really pleased, and we can't wait to continue to to unfold more of the functionality of that software. It's going to come with

0:54:36a financial dashboard. It's gonna come with more public facing stuff, and it'll it'll just make everybody's lives, certainly for staff a lot easier. But it'll be much more available and open to the community to be able to understand. So with that, I am with my presentation again. Here are the links for the Budget board

0:54:55and the budget process of the budget process page. We've got everything that we've done to date.

0:55:01I'm learning all the presentations, all the recordings of the meetings, and all sorts of things. So I encourage you all to check it out. And with that

0:55:10I have I've concluded a presentation and any questions. Thank you so much. Okay, thank you. manager. are there any questions from council members?

0:55:25Yes, thank you. It's both some questions, comments so question, and that if there's an answer that'd be great. And if there's no answer, then please take it as a comment. which a lot of these, especially what the Financial Advisory Board was proposing in. And in addition to things like the 1 15 trust and a few other places where our

0:55:50fun balance can go. is there a specific place where it will optimize our

0:56:00or under the portfolio of what we've done to bond raiders, because to me, I think, what's the most important thing of where our general reserve

0:56:09funds should be going is done in ways that when the barn and S. And P. Is doing their analysis to be able to reevaluate a bond rating. Where can our money go? In a way that makes us look position even better, and demonstrates to the bond raiders that we are indeed serious, and that we have created more stability.

0:56:32Thank you for that. So I

0:56:35actually did reach out to Nhs advisors, Craig Hill and asked him that very question. And I want. When our new finance director and the new auditor come on board, I want to pose the same question to them as well, and I. I talked to the Financial Advisory Board about this at the last meeting. So What Craig said was Edrf.

0:56:56If for refund, they don't even partly find globe would absolutely be looked upon favorably by the bond raiders. My question to him was, Well.

0:57:07if it's in a separate fund, for which is what the current policy side will, you know.

0:57:12with the barriers, have some sort of a pinging on whether it should be in the general fund, or should it be separate? And he said he didn't think that that would be an issue, because again, it's general fund money. That's it's and it would be used for general fund expenses. So so, anyway, so we'll We'll work with our auditor, our audit firm on that, and how we can as to portray that. But it seems that

0:57:34having that Edrf. And having it funded at all also with the section 115, trust, having that having some funding

0:57:44also speaking to the State auditor.

0:57:47that that those are all. They are positive attributes to our financial statements. And so that's what we should be looking to do.

0:57:55Excellent. Thank you.

0:57:59Here.

0:58:02Council. Member for Deli. Yeah, I have a a few quickies here, and I just wanted to start just on the Fab recommendations. Just generally I was wondering where the

0:58:1533% comes from. is that a thing cities use?

0:58:20And if, in fact, if we proceed on both of those recommendations. how does it impact those

0:58:26single items that we're gonna be? considering? Does it make it harder to approve all of them or

0:58:35or not?

0:58:37For the first part cheer, Fermain. Did you have a

0:58:42I'm trying to remember how you came up with it was our best guess of meeting the 15% general fund

0:58:51Farhad Farahmand: reserve balance plus the 3 months of operating expenses. That was

0:58:56the the approximation of those 2 combined?

0:59:00Okay, okay? And then the other answer is that is ultimately up to the city council. Right? It depends on. If you fully funded the Edrf. Or if you partially funded the Erf

0:59:12doing it all together could conflict. There's no question about that, but I do believe that what that means is again, throughout the year. As we're bringing these one time projects to you. What we will do is within. We will make sure that within that staff report, and within each of those items we will be tracking the fund balance as it goes, so that we can have that very clearly.

0:59:37but I think that you know again, that's ultimately up to the Council. When you have your discussion in August on how you want to be able to out very allocate, you know you also have the section 1, 15, trust in play. So if you have 16.6 million dollars, and kind of how you divide that pie, I think, is what Again, the Fab has been consistent in their desire for for refunding the Edrf. So I think that that is, you know, a worthy consideration. And so you know. But at the end of the day

1:00:07the Council will work with the Fab to develop a policy. And again, I think the Fab is really on the right track here, and then what we'll do is, you know I I want a little bit more. information from our auditor, our independent auditor, as well, to be able to help provide you all the information that you need to kind of divide that by the way you want to.

1:00:27those will be the

1:00:29decisions to be made. And we may not be able to have all of those in the next fiscal year.

1:00:37It might not, it might not. That's true again. Ultimately, that's up to the Council. Yes, okay, And then I just wanted to touch base with just a couple of the kind of the favorite programs that I've been following. And I? that

1:00:51we're. We're a little difficult to find in the budget, but I want to thank you for where the for the money for the fourth is going. I think that's really nice to be able to identify that. And I think you will address the manager Mlk. Will be funded of. Is there? Is that a permanent thing we're going to be having in the budget again?

1:01:08and in your in your department, or

1:01:12okay. And then I also wanted to. What we

1:01:18have been working on for a couple of years is used to be a Jpa. Now it's a memorandum of understanding to coordinate wildfire prevention activities to prevent East Bay Hills. and I talked to the Chief about this. And

1:01:33this has been something that is pending that we don't know if we're going to be participating in it. But it's something that's turned into an mou. And previously we talked about having 20 to 25,000 available, and I think that was a positive thing that was agreed to a a a year ago a couple of years ago.

1:01:52Is that anywhere in the budget? Or can it be, or will? We haven't specified that separately? We haven't called that out separately, but we we have to do that in our professional services budget again. This depends on what the costs will end up being. We have a meeting coming up. So I'm looking forward to getting some some answers about that. But yes, it can. It can be available. Thank you for that.

1:02:14Yeah. I look forward to continuing to see if we will be participating, because that is important. And finally, in in one of the resolutions I don't have in front of me. I think it's the for the general budget.

1:02:24it says that the city manager shall be allowed to shift between departments. Isn't that a policy that we kind of got rid of

1:02:34in our changing on how we budget things.

1:03:0115. Without educating the council of those shifts, I will make sure to educate the Council.

1:03:08How do I say that nicely.

1:03:14hey? So I have some questions and comments as well. First, I like to thank the staff.

1:03:26the city manager on bringing this together with some really tough

1:03:34things happening like lack of staff and lack of computers. so I appreciate that, and particularly want to thank the fat You know

1:03:46we have been as a council really wanting to hear from the Fab to have that extra pair of eyes on the budget. and this is the first time, I think that with everything timing wise has really worked out, and I really appreciate the time and effort that the fact put in to review the budget, to be able to give us a timely recommendation.

1:04:11And I think that I really appreciate the thoughts about the reserve that are part of the recommendation. I think it's great that we're gonna have it. We're gonna have a chance to have a fuller discussion. So I'm I'm assuming that we don't have to give you direction to request that it be put on the August calendar. I think that you know we are in a good place now.

1:04:39but we had to work really hard to get here, and I think that

1:04:44chair farm on the comment he made about having this general fund, and having every year small draws against it, and kind of wearing that fun, general fund, balance down and down and down. That's kind of how we got ourselves into trouble before, and I really appreciate having the belts and suspenders not just council watching, but Fab watching, and then also the public to make sure that that doesn't happen again. And so, having all these eyes on it.

1:05:14and having this policy now having the general fund balance be a topic of the

1:05:19conversation every time we talk about the budget is is gonna be really helpful to all of us. moving forward and keeping us on track. I think the the harder it's it's

1:05:32almost easier to just say no, because we can't then, like.

1:05:38you know, to then to say No, when there's so many opportunities, and people can see that we have a Healthy Fund balance. But the fund balance is really our savings account. It's really not our checkbook, and I think that's the that's the way we have to approach it.

1:05:54So I do have some questions like councilmember fidelity. I have the questions about, where is the? So I have a questions about just some minor issues.

1:06:07I know that a bag is charging a a a 10% more for participation costs. I want to make sure that that is included. in our budget. That's the it's $7,500. But I just want to make sure that it is included.

1:06:24in the City Council budget. Yes, Holly.

1:06:27the a bag juice. How much? I'm sorry I missed that the the A bag dues are in the city council budget the current. That is correct. Yes. they were previously in the city managers, budget, but it aligned with the Cal cities registration all the other

1:06:42organizations that the city at the whole is a member of. That's the one on the location. Great, thank you. And then I know we had talked about a pilot for parking restrictions on red flag days. Is there funds in the budget to carry that out.

1:06:59We did not contemplate that in the budget at this time. But, Eric, you and I talked a little bit about how we might work on that

1:07:10sorry, Dr. Chief.

1:07:14if I can answer that question directly, I don't think that proposal is going to require any additional funds. That would just be an addition of a a resolution to add in those restrictions for the street that we had planned on. so it's more of just giving warnings and citations on those red flag days. And we're only looking at a few days a year that we actually have red flag days in El Cerrito.

1:07:40Okay, great. Thank you. That's really helpful. Dr. Chief.

1:07:45Okay. And then

1:07:48maybe you should not go away. And then my other question is, we had talked about needing Eoc training for staff as well as council and having a disaster drill. So are those funds in the budget.

1:08:04Yeah, right now, looking at members in City Hall and our staff have the minimum requirements to actually do those drills. That would be our first step. Those classes are offered through Fema online

1:08:16to get. So we need to get a list of all the classes that need to be taken. And then we can start talking about having an Efc. Drill. We are having conversations with our neighbors to have a drill that it called stronger together, where we actually do Eoc drills with Berkeley and Albany at the same time, because if we do have a major event, we'll all be working together in collaboration. So the plans are working towards having a drill

1:08:41that would re-enact the Berkeley Hills fire, and then a Hayward fault movement on those dates but

1:08:49the first step is to get everybody trained up in their minimum classes so that we can start that planning. And we've already started that.

1:09:05And then

1:09:07when you say the stronger together drill, that's not, that is that a that's a paper drill, or is that a live for like? When when do we get to like actually practice

1:09:18lying in the street? Being so, you all stand up with Eoc going through the process of what it, what each position would actually do. so that we can collaborate with our neighbors. Yes. So a live Dr. In the city halls.

1:09:32Okay.

1:09:34great. Thank you very much.

1:09:38Okay. And then I have 2 questions that came up in your presentation. can you go back to the slide regarding all city funds?

1:09:52And I was wondering you talked about how the expenditures are higher because of cip expenses that were not

1:10:03done in 2223. But wouldn't the cip income or the revenues for that also

1:10:12be included in 2324? And why why is there such a big differential between revenues and expenses? And I was, gonna say, our public works directors here, who can probably shed some light on that as well. But

1:10:27I think we talked about this in the last presentation regarding pulling from the fund balance of some of those funds, which is why there is that disparity there? and so but that maybe you can be a little bit more specific about that. I think that covers it for the special funds in terms of the grants, the cap

1:10:48the crp fund. We do have the revenues also, and and and the expenses in fiscal year 23 and 24. But the difference there is is more related to the special fund that we're using fund balance, for example, from the street equivalent fund and Sb, one fund where to complete capital projects.

1:11:07Okay, so so do we don't have a 4 million dollar shortfall. Or

1:11:13what does what is that? 4 million dollars differential mean between revenues and expenses for all funds?

1:11:24if if I may, we have a chart in the last presentation on June sixth. Then I don't have it in front of me here, but it just showed that there are Healthy Fund balances in a number of funds like the Streets Fund, but also the integrated Waste Management fund. and so this draws down just a little bit as appropriate with approval from the relevant department head where there was enough fund balance for one time costs.

1:11:45Okay? So I guess so if if we are drawing we wouldn't show that as part of revenue

1:11:52to offset these particular cip expenses. I guess I guess maybe this is a bookkeeping issue, and I'm not understanding why there's a 4 million dollar difference in revenue and expenses. So the revenues? Yeah, not necessarily that. the revenues may or may not reflect what those funnel special funds are. work with fund balance in that. So those are essentially what this includes a dental fund as well. So that's one of the reasons for the increase.

1:12:20And as you've seen by the last 3 fiscal years.

1:12:24we have come in well under

1:12:27expenditure. Expenditures are coming well under revenues, and that is what I expect. Again this fiscal year. Okay, so that there are fund balances that are not included in the revenues that would be drawn against some of these expenditures that are the cip costs. That's correct.

1:12:46Okay.

1:12:48not getting. Why, it doesn't show up. But I will. I will let that one sit there. And then I had a a question about the stress test chart.

1:12:59And in the notes under scenario 3 and 4, you have a 5% healthcare increase. Is that not included on. If you just join on zoom counts when bread, Nick mute your audio

1:13:19and I can try and answer that. So Chris Bigam actually helped us put that together. And so I I can't speak with certainty. But my understanding is that the 5% health care increases included in all of them. So he's just differentiating there that the 4% increases for the other expenditures. But because we had more information about health care that was included in the in all the projections.

1:13:46one and 2 and 3 and 4.

1:14:05Okay, so the 3% annually is the 5% and 3 and 4 correct.

1:14:11That's helpful to understand. And then on the Rptt chart.

1:14:18I know that we are expecting 4 million dollars rather than 4.3 million dollars, and then for this year 2324, we are estimating 4.3 million dollars, and I was just wondering if you could just let me understand why we're not going with 4 million dollars this year. Because that's the actual expected.

1:14:43Is that is it? Because it's too conservative, or what? What is the yeah, I

1:14:50well, I haven't like I said I. This was once that I was reluctant to use

1:14:57because it it's been

1:14:59this one's been a little tricky this year on, on like other years. This is again the first time that we get flat. and so I think, considering

1:15:09some of the what we're looking at. We're talking to Hdl. The property tax consultant about that. It seems like, if if things continue to have been

1:15:19that things are going to stabilize, certainly there, doesn't it? It's not like a bubble that bursts like in the last recession. So they're seeing that this is happening. And again, El Cerrito has been holding our our

1:15:31numbers are our our costs or the the home prices. So again, I was just. You know. I was thinking that this would be conservative, and it was the inflationary stuff that happened during this year. but again, this is something we'll continue to watch, and and if we need to.

1:15:49if we to draw that down at mid year, then we will, and if I can just focus on that So this was the 4.3 keeping up. That was something Sandra Delete, a priori finance director, was comfortable with, and Chris Bogum, who's been acting in, you know, similar capacity. And of course Karen are sitting in Jo pinkos And and so really, what it assumes is, as you've seen here. The prices, you know, haven't dropped dramatically. But really we are conservatively assuming that they might

1:16:13But what it really thinks content places is that home sales will level out. So they, we think that they were especially low this past year, but taking the average over the past 3 years for the number of sales feels appropriate. and that would get us to that 4.3 number, but we think also we could come back and just keep monitoring and reduce projections if we needed to

1:16:381,715 elm is coming up. I think we're looking at some new credence. condos. might be selling

1:16:47it. So I mean, there. There are actually more properties coming on fine in this fiscal year as well, which will also be a part of this calculation.

1:16:56Okay, I would like to also note that this is the first time in 3 years that I've been asking you why you were so optimistic. Budget revenue number. When I think most of the time I was like fighting you because your estimates were too conservative in my opinion at the time, so you know I do appreciate that. And I appreciate the extra detail on how we got to to 4.3 in the budget. And I am comfortable with that.

1:17:28Okay.

1:17:30so now is the time for members of the public who wish to provide public comments on this item in person, request to speak and submit a speaker card to the city clerk and remote speakers can use the raise hand, feature to request, to speak. Please remember to identify yourself and your city of residents at the beginning of your comments.

1:17:50madam Clerk, please proceed. Thank you, Mayor. Just a quick note in the supplement of materials. The written Fab recommendations that were received are posted online with the written public comments. And

1:18:02at this time I have no request to speak on this item, the quiet day today, not even online, not even online.

1:18:10Wow. okay, so any final comments. okay.

1:18:17thank you. Mayor, okay, I just want to say, yeah, thank you to everybody, especially city manager, Karen Pinkas, and we'll I can't tell you what of a leaf it is to.

1:18:32because we've been talking about this since January, and and and we've seen what is transpired, and and what we've had to do with in in past years, and and to not use the tran for the very first time, and and my night here on the city council that is fantastic. And I hope we could continue with that

1:18:54and and be you know, mindful of of what we learned from the past, and it's time to move forward. And and I'm just just so proud of our staff and everyone involved in our partners in labor that helped us during the difficult times. And and know that you know.

1:19:17it was a group group effort. But city manager can pick us. You have done exactly what I have asked you.

1:19:24your staff, to do so. Just so proud of that. You were able to accomplish this, despite all the the the bumps on the road. with people leave it coming and going, and leaving and retiring early and and you were able to do this

1:19:41despite you know the the folks that would show up in this meeting and personally attack you, attack you by email attack you by phone. this proves that your your true leadership.

1:19:56And then you're 22 plus years on this representing the city. thank you, and and I can sleep now you and I have have had long, long talks, bustraged frustration. yeah, arguments. And and But this council, this pragmatic council, was able to do this and to do this right with that politics. And so I want to say thank you to my colleagues on that, and I'll be supporting

1:20:26this project

1:20:29and then get an accounts.

1:20:31Councilman for delic.

1:20:33First, I want to concur with what the Council I don't know about about staff. Just a great job.

1:20:40And I just wrote a couple of comments down because,

1:20:46you know, I believe we've come a long way from the 2 or 3 years ago, when our city wasn't a financial

1:20:53Paul we were. We were facing a fiscal cliff

1:20:57just like transit. It has been lately that we've read about in the paper but now we're rising, and we're so solidifying our goal to establish sustainable finances. And Elsa Rita. And that means good things for all of us.

1:21:10as

1:21:11we've talked about. We've dealt with a lot of hurdles.

1:21:14including pandemic staff shortages, unstable economy that's impacted sales, taxes and transit systems. And yes, some past mistaking policies. that should have been corrected sooner But now this balance budget and adequate reserve levels we've benefited from continued good housing sales

1:21:36that will covid funding and tough local decisions from our council and our staff. So those 3 combinations have been the 3 legs of the stool that have gotten us back

1:21:46and we haven't bounded. This is good news for the long term

1:21:50prospects of this council to help guarantee that the quality of life that we keep talking about in our values all the time that we

1:21:59we've promised that now we can deliver on that to keep track of for additional housing to enhance our parks and our open space to guarantee a respectful and safe city for our diverse

1:22:12population, and to enhance our business community and create a new city center with a library that we can be proud of.

1:22:20The more financial sound we are the more those promises come into site. Thank you very much.

1:22:27Thank you, Councillor for telling

1:22:29Mayor per 10 month. That was so fantastic. So I'll keep it incredibly brief, which is, thank you so much to the executive team for making this happen. especially the Financial Advisory Board. I really appreciate all the feedback that you've given to us and the partnership that we've been able to build between the Council and the Financial Advisory Board.

1:22:49And also I want to thank the UN. Some unsung heroes of this process which you know, there's been a lot of challenges in these past few years, certainly, since myself and Mayor Motiyama joined the Council, and since Council member wecing are joined there's been a lot, of course, corrections, and I'm not much of a sports person, but I'm I'm more of kind of Science Fiction Star Trek person. And when you're in the command room, and you're trying to figure out what is the best approach.

1:23:18I think that we can feel really good about where we're at right now we're setting ourselves up for success in the future, and while it might not be at the speed in which we would love to get it done? We're doing it the right way, and I'll I'll very politely amend the statement that Council Member Quinto made, which is this, is our second year without a tram.

1:23:38which I think is a really fantastic, and we're not going to go back to that. So this is a great great effort that we're making, and I'm very proud of this council. Thank you.

1:23:53Great. So

1:23:57do we have a motion to approve the 4 resolutions as presented.

1:24:04I'll make a motion to approve the form. Thank you. I have a motion from Council. Member Weissinger. Do I have a second so second from Council, member King to

1:24:15madam clerk, please call the all those in favor. Please say I. Any opposed motion carries make it so.

1:24:28Hey? Our next item is city council, local and regional liaison assignments. Are there any Council reports?

1:24:42Yeah. Might as well. I I did mention transit The Mayor wrote a letter to our leadership in Sacramento, as did with tech and an agreement was made where 2 billion dollars

1:24:57in transit money will be redirected toward operations, and additional funds will be provided over the next 3 years to keep us afloat. So thank you all for that.

1:25:10Hi, Tim! Yes, That's some Saturday I attended Richmond's Juneteenth festival, which was a fantastic event. thank you. The city of Richmond and all the community partners that put that on. And last week. We also approved the budget for the for recycle march is our West country as the integrated with management authority.

1:25:31Right?

1:25:36Okay, I did attend the Mc Board meeting on June fifteenth, and on June sixteenth I attended the annual, a back General Assembly, where we passed the A. Bag. administrative budgets.

1:25:52Oh.

1:25:54okay.

1:25:58The time is now 7 29, and we are adjourned. The July fifth. Regular City Council meeting is canceled. The next scheduled city Council meeting is Tuesday, July eighteenth, 2,023 at 6 pm. And I look forward to seeing all of you guys at the July Fourth.

1:26:20There you.