WEBVTT 00:00:00.514 --> 00:00:09.817 - Go ahead and call to order this meeting of the special fiscal committee on Friday, April 24th, 2026. 00:00:09.817 --> 00:00:19.212 - I'll be staffed for district three. It's about being on SNF district one. They were on district four. 00:00:19.212 --> 00:00:27.134 - Jeff McKim, City Controller. Jennifer Crossley, Clerk's Office. Great, thank you. So. 00:00:27.682 --> 00:00:34.672 - We have our agenda this morning and basically the only thing we have in our agenda are updates from 00:00:34.672 --> 00:00:41.731 - our new folder. So starting with the quarterly reports, then state reporting, then finding questions 00:00:41.731 --> 00:00:48.861 - and comments from CASA members with each of those sections and other comments on all of it at the end 00:00:48.861 --> 00:00:54.942 - and then measurement. So we'll go with that agenda unless anybody has anything to add. 00:00:57.538 --> 00:01:11.728 - I'm just turning it over to you. Great. Thank you very much. Good morning. I provided a couple of reports 00:01:11.728 --> 00:01:25.382 - to you in the last meetings packet that I intend to keep providing and updating if that all works for 00:01:25.382 --> 00:01:27.390 - you. One was a 00:01:28.962 --> 00:01:40.434 - One is a budget expenditure performance report for the first quarter, which basically means budget against 00:01:40.434 --> 00:01:51.477 - actuals. I provided the report at two levels of detail. One is the budget by fund and department. Then 00:01:51.477 --> 00:01:57.374 - the other also goes down to the budget category level. 00:01:57.666 --> 00:02:04.447 - and actually the actual line model. And you'll remember the category, there are four categories 00:02:04.447 --> 00:02:11.723 - of expenditures, personnel, supplies, services and capital. So that's the budget performance. Then the 00:02:11.723 --> 00:02:19.281 - other is the revenue performance for the first quarter. And again, I did this one in two levels of detail. 00:02:19.281 --> 00:02:23.166 - Again, performance just means budgeted versus actuals. 00:02:23.682 --> 00:02:33.537 - And yeah, so I provided this in two levels of detail. The one is just by fund and general category of 00:02:33.537 --> 00:02:43.199 - revenue. So examples of that include intergovernmental charges for services, fines and forfeitures, 00:02:43.199 --> 00:02:53.150 - licenses. And then the more detailed report also breaks it down by program area. And program areas are 00:02:53.250 --> 00:03:01.677 - use differently depending on what departments it is. I will say that the by far the most detailed use 00:03:01.677 --> 00:03:09.938 - of prep, the program level is in parks. They break their budgets and their revenues down by each of 00:03:09.938 --> 00:03:18.448 - their program areas. We see examples here, Bryan Pool, Mill School, Baninger, Cemetery, and so on. But 00:03:18.448 --> 00:03:20.926 - program area is different for 00:03:21.762 --> 00:03:29.191 - for each each department and then the actual line item description of the of the revenue source and 00:03:29.191 --> 00:03:36.768 - again for each of these i'm providing the projected the most projected for the year versus the actual 00:03:36.768 --> 00:03:44.345 - um all both the both levels of detail should total up to be the same thing they're based on same data 00:03:44.345 --> 00:03:49.694 - they're just summarized to different levels i'm sorry is this the chart 00:03:49.922 --> 00:03:58.808 - You put in the packet for our last meeting. Correct, and it was. That should be in our packet for this 00:03:58.808 --> 00:04:07.004 - meeting, too. But it's absolutely accurate? Yeah. Well, I copied over the exact same file from 00:04:07.004 --> 00:04:15.977 - the information from our last meeting. I think it's just, it's farther down. It's the second, it starts 00:04:15.977 --> 00:04:18.910 - with page 65. I see the projected 00:04:20.674 --> 00:04:30.595 - Oh yeah, now we don't have a productive. I see. Fund department adopted budget and then the budget expended 00:04:30.595 --> 00:04:39.597 - and percent expended. Oh, and then the details I have more, but I. Yeah, fund department category 00:04:39.597 --> 00:04:49.150 - description, adopted, amended, and expended. Yeah, that's what we have. OK. That doesn't look the same. 00:04:49.922 --> 00:04:58.031 - Okay, yeah, the revenue may be a little bit different. The other thing is that as you know, we have 00:04:58.031 --> 00:05:06.222 - a lot of different funds, most of which are not very interesting. And so Council Member Stasberg and 00:05:06.222 --> 00:05:14.494 - I kind of picked the funds that we list out in this report based on what we thought you would be most 00:05:14.494 --> 00:05:15.710 - interested in. 00:05:16.130 --> 00:05:23.513 - It's easy to add additional funds. So if you later want something else added to these reports on a regular 00:05:23.513 --> 00:05:30.690 - basis, I can do that. So Council Member Stossberg passed on a couple of questions from the last meeting 00:05:30.690 --> 00:05:37.797 - about these reports, which I can answer now. Council Member Piedmont-Smith had wondered why 64% of the 00:05:37.797 --> 00:05:44.766 - controller's adopted budget had been already spent. And there was speculation as to whether that was 00:05:44.898 --> 00:05:52.977 - related to inter fund transfers, and that is indeed the case. So with a couple, you'll see that some 00:05:52.977 --> 00:06:01.616 - departments have different budgets in different funds. So the controller's office had the main controller's 00:06:01.616 --> 00:06:10.095 - office budget is actually in economic development. So that's the controller's office budget that supports 00:06:10.095 --> 00:06:14.654 - all of our staff and the vast majority of our functions. 00:06:15.042 --> 00:06:22.277 - The controller's office also has a budget in the general fund that is just basically mostly inner fund 00:06:22.277 --> 00:06:29.302 - transfers. There are some other things, but it's mostly, it's inner fund transfers and other things 00:06:29.302 --> 00:06:35.694 - that aren't really about the operations of the controller's office. It's just a department 00:06:35.694 --> 00:06:43.070 - and any expenditures that need to be associated with the department. So it's just expenditures that are, 00:06:44.066 --> 00:06:53.161 - Therefore, essentially on behalf of the entire city. So the general funds controllers office budget 00:06:53.161 --> 00:07:03.075 - 64% of that what has been spent because that consists of mostly of Interfund transfers and in fact 1,452,500 00:07:03.075 --> 00:07:04.894 - in a fund transfer. 00:07:05.346 --> 00:07:13.183 - And that actually brings me to another report that was included in your packet and had been asked for, 00:07:13.183 --> 00:07:21.096 - and that is the report of an inter-fund transfers. And so I'll actually just temporarily switch to that 00:07:21.096 --> 00:07:28.932 - for a moment. And you'll see this is a report of all the inter-fund transfers that would have happened 00:07:28.932 --> 00:07:30.302 - so far this year. 00:07:31.330 --> 00:07:39.239 - There are a couple on the general fund and then there are several that are associated with TIFF. Out 00:07:39.239 --> 00:07:47.227 - of the general funds, and these are all budgeted fund transfers, they're all made at the beginning of 00:07:47.227 --> 00:07:55.763 - the year to fulfill what was in the appropriation ordinance, but they include the general funds contribution 00:07:55.763 --> 00:07:59.678 - to the vehicle replacement fund, the alternative, 00:07:59.906 --> 00:08:08.496 - Transfer of 500,000 to the alternative transportation fund for the sidewalks. $250,000 transfer to the 00:08:08.496 --> 00:08:16.918 - Fiber Connectivity Fund. The city as part of its agreement with Meridian Fiber agreed to transfer $1 00:08:16.918 --> 00:08:26.008 - million into the Fiber Connectivity Fund that would then be used to, my understanding is provide connections 00:08:26.008 --> 00:08:28.510 - for low income neighborhoods. 00:08:28.994 --> 00:08:38.071 - I don't know the detail. That would be a reduced question on the details. But the $250,000 was in your 00:08:38.071 --> 00:08:47.588 - 2026 budget for that. There's still $500,000 of commitment remaining after 2026 for that Fiber Connectivity 00:08:47.588 --> 00:08:54.814 - Fund commitment. And so there was already 250 that had been transferred. Exactly. 00:08:56.514 --> 00:09:06.832 - And yeah, so it'll be another 500,000 in future years. 500,000 for the Jack Hopkins fund. And then we'll 00:09:06.832 --> 00:09:17.544 - over almost $1.6 million in transfer from the general funds to sanitation. So that's a subsidy of sanitation 00:09:17.544 --> 00:09:21.278 - by. Yeah. I probably can't answer it. 00:09:21.602 --> 00:09:29.240 - Why is that transfer made at the beginning of the year and not at the end of the year when you can tell 00:09:29.240 --> 00:09:36.951 - what amount is actually needed in the subspace? That I don't know. I can find out. I mean, this transfer 00:09:36.951 --> 00:09:44.588 - happened before I even started. I mean, it was appropriated by, was appropriated as part of the budget. 00:09:44.588 --> 00:09:51.198 - It looks like all the transfers that were appropriated as part of the budget were made on 00:09:51.426 --> 00:10:05.141 - Yeah, but we appropriated that as an estimate of what would be needed to subsidize that sanitation. 00:10:05.141 --> 00:10:18.718 - I'm confused because when we had a complete work over sanitation, you know, the fans, essentially, 00:10:18.946 --> 00:10:29.169 - It was to internalize the cost and not to rely on general fund subsidies. So I can't remember. So what 00:10:29.169 --> 00:10:39.591 - you're saying, Isabel, or Jeff, is that this is in lieu of future revenue from essentially people paying 00:10:39.591 --> 00:10:46.142 - for their trash. I mean, this is a general fund subsidy of people 00:10:46.402 --> 00:10:53.873 - Yes, but I mean, instead of permanent subsidy, I mean, we have to recoup that at the end of the year. 00:10:53.873 --> 00:11:01.344 - No, we've been subsidizing it for years. Well, and last year during budget time, I remember saying as 00:11:01.344 --> 00:11:08.669 - part of the presentation that the subsidy this year was going to be a lot more because the expenses 00:11:08.669 --> 00:11:16.286 - have gone up a lot, but we haven't actually raised rates enough. And we are supposed to, at some point, 00:11:16.418 --> 00:11:24.953 - some kind of a proposal about raising rates, and I talked with Gretchen about that last year, late last 00:11:24.953 --> 00:11:33.323 - year, and maybe even early this year about her presenting options to this committee as part of how to 00:11:33.323 --> 00:11:41.694 - raise sanitation rates so that then we can reduce that general fund subsidy in different, I asked for 00:11:41.794 --> 00:11:49.509 - for some different proposals from sanitation basically is like, well, what can we do to reduce this? 00:11:49.509 --> 00:11:57.300 - Because there's, I think the biggest cost is the fixed cost of salaries simply of running the routes. 00:11:57.300 --> 00:12:05.090 - And so that it's the time and the manpower to run the routes. And so then it's like, well, how can we 00:12:05.090 --> 00:12:10.590 - reduce those possibly to run the routes? Or do we just need to increase 00:12:11.234 --> 00:12:18.803 - costs of people's trash pickups and overspray that so I asked for things like well what happens if we 00:12:18.803 --> 00:12:26.298 - uh only pick up recycling for example every other week and sort of what happens if you know so first 00:12:26.298 --> 00:12:33.793 - crash every other right and I think we'd end up speaking and maybe problem yeah and and so just that 00:12:33.793 --> 00:12:41.214 - you know coming up with some different proposals to go through this committee first before going to 00:12:41.730 --> 00:12:48.803 - the full council. And I can't remember the last time I had a conversation with her about updates on 00:12:48.803 --> 00:12:55.875 - that. But at this point, like, it's like almost May, so it's almost halfway through the year. Yeah. 00:12:55.875 --> 00:13:03.230 - Can you follow up on that? Yeah. I mean, it just, you know, you may remember this debate, I don't know, 00:13:03.230 --> 00:13:05.918 - before county, but, you know, we were 00:13:06.082 --> 00:13:12.849 - We were bloodletting essentially money because of transfer fees, because of the lack of automation, 00:13:12.849 --> 00:13:19.616 - which I was, you know, a little wheezy about, that everyone's displaced workers and so forth. So we 00:13:19.616 --> 00:13:26.654 - put a lot of capital investment in to get these cans going, to get the trucks required. And we're still 00:13:26.654 --> 00:13:34.030 - held hostage, I think, to essentially the fact that we don't have our own landfill. I mean, that's something 00:13:34.030 --> 00:13:34.910 - that I think 00:13:35.458 --> 00:13:43.104 - same for a long time. I mean, you know, looking forward to, you know, it would be better to reopen your 00:13:43.104 --> 00:13:50.750 - landfill and control our waste stream rather than being really, you know, hostage to callers and their, 00:13:50.750 --> 00:13:57.808 - you know, profit incentive and plus fuel and everything that goes into trucking into, you know, 00:13:57.808 --> 00:14:03.102 - tens of miles, whatever, yeah, 100 miles or whatever, 80 miles, anyway. 00:14:03.618 --> 00:14:10.356 - I'm just kind of surprised to see that here. That's now it gives me a lot of trepidation. So that is 00:14:10.356 --> 00:14:17.160 - likely to be, I mean, we're not going to repeat that. That's no, it's going to be more. Well, this is 00:14:17.160 --> 00:14:24.098 - the amount that they, this is more than last year. This is the full amount that they estimated for this 00:14:24.098 --> 00:14:31.036 - whole year or subsidy. Yeah. And so they're better not. If there's another transfer over to sanitation, 00:14:31.036 --> 00:14:33.438 - then it would have to come through. 00:14:33.858 --> 00:14:41.092 - Council, I think, for approval. Yeah. This is the full appropriation that you put in your budget. Okay. 00:14:41.092 --> 00:14:47.701 - But we need to- Yeah. Something needs to happen with rates or something next year because it's 00:14:47.701 --> 00:14:54.796 - not sustainable for the general fund to be also subsidized and it's not- And I do suggest to you that 00:14:54.796 --> 00:15:01.822 - this group will be a good opportunity to invest. I know that sanitation and public works are hard on 00:15:01.822 --> 00:15:03.422 - other various options. 00:15:03.842 --> 00:15:11.517 - Well, and the other, I don't know how long our current contract is for colored services is, but the 00:15:11.517 --> 00:15:19.500 - waste reduction district of Monroe County has gone over to Bromfield because we actually get some money 00:15:19.500 --> 00:15:27.406 - back for some of the recyclable materials from Bromfield. And so we might want to reopen the contract. 00:15:27.406 --> 00:15:31.934 - So yeah, I don't remember what that was. Relatively. Yeah. 00:15:32.610 --> 00:15:39.265 - You know this thing. If there's some particular thing that is responsible for the $1.6 million, or is 00:15:39.265 --> 00:15:45.986 - just the amount of things or anything particular that accounts for that? I mean, the other thing- They 00:15:45.986 --> 00:15:52.772 - had about a million for five, six years, so. Well, and the other thing was we were supposed to, because 00:15:52.772 --> 00:15:59.493 - of the automation, you know, the trucks and everything, we're supposed to cut back on injuries and the 00:15:59.493 --> 00:16:02.494 - associated cost of injuries of employees, but 00:16:03.042 --> 00:16:11.515 - Yeah, these are all very good questions from public works. My understanding is there's also capital 00:16:11.515 --> 00:16:20.242 - expenditures that have been behind the garbage trash is also an issue, but let's wait until we can get 00:16:20.242 --> 00:16:29.223 - the right people in the middle and get an answer to those questions. Do you want to direct your attention 00:16:29.223 --> 00:16:30.494 - to a couple of 00:16:31.650 --> 00:16:42.208 - comments that have been made or questions. But why don't we save those? Yeah, I don't know if those 00:16:42.208 --> 00:16:53.295 - might be relevant. I mean, yes, of course, the reason I have to deal with them. But in any case, I mean, 00:16:53.295 --> 00:16:56.990 - I want to make it clear that those 00:16:57.410 --> 00:17:08.595 - Where all of the experts were made as part of the preparation room. Okay. So, Okay. And then sorry, 00:17:08.595 --> 00:17:19.780 - there are also some transfers from TIF, most of which are associated with the large payments. We're 00:17:19.780 --> 00:17:24.702 - probably does not have as any surprise that 00:17:25.250 --> 00:17:32.306 - The there are still a number of garages that are being paid for the 4th Street garage and the trades 00:17:32.306 --> 00:17:39.502 - district garage bonds and then the Morton Street and Walnut Street garages. So those are those are the 00:17:39.502 --> 00:17:46.489 - other transfers. I also put another one in there that is not actually happening yet, but will be in 00:17:46.489 --> 00:17:54.174 - the near future and that's. You may remember that there was discussion Council last year about separating out 00:17:54.626 --> 00:18:02.913 - That is the dispatch center from public safety of Lincoln tax, which is the way it always should have 00:18:02.913 --> 00:18:11.282 - been. Those two funds never should have been coming in. So I counseled past an ad board that separated 00:18:11.282 --> 00:18:19.488 - them out and only part of the transfer of lives has actually taken place. I went back and reconciled 00:18:19.488 --> 00:18:20.382 - that fund. 00:18:20.802 --> 00:18:30.818 - And there's still another $1.481 million in this transfer from PSLIT to PSAPLIT in order to completely 00:18:30.818 --> 00:18:40.834 - fulfill the app. So I wanted to just kind of flag that because that's a future transfer. And those are 00:18:40.834 --> 00:18:48.030 - really the only transfers I would expect unless somebody goes to council. 00:18:48.834 --> 00:18:58.403 - What's that line nine refunding bonds? So in the bond world, refunding me is basically mutual financing. 00:18:58.403 --> 00:19:07.607 - So they're just this is this is the series of TIF bonds that are that refinance for you specifically 00:19:07.607 --> 00:19:16.446 - for parking garages or for what? I don't think that's one of the ones for parking garages. I can 00:19:16.898 --> 00:19:26.253 - I can remind that I actually put together a detailed sheet on the history of each of these bonds. Why 00:19:26.253 --> 00:19:35.608 - do we have lease payments for Morton Street, Walnut Street garages and bond payments video too? Do we 00:19:35.608 --> 00:19:40.286 - not just own Morton Street, Walnut Street garages? 00:19:40.706 --> 00:19:47.150 - I don't know if you know that. No, those are lease purchase arrangements. They're kind of like 00:19:47.150 --> 00:19:54.002 - the convention, slightly different, but just like the convention center is done as a lease purchase. 00:19:54.002 --> 00:20:00.853 - And so yeah, we actually make lease payments to the developer. So it's like an mortgage payment kind 00:20:00.853 --> 00:20:07.230 - of equivalent to what we just call a lease payment. Yes, it is structured as a lease payment. 00:20:08.450 --> 00:20:23.381 - How much longer do we have on those two? Definitely into the 2013s, surprisingly long. How frequently 00:20:23.381 --> 00:20:35.678 - do those payments occur? The amortization schedule shows monthly, but I'm not sure. 00:20:35.938 --> 00:20:45.061 - whether we actually pay them monthly or fully paid in like six months. I would be curious just about 00:20:45.061 --> 00:20:54.274 - how frequently I guess, but that might show up quarterly then in terms of the transaction. Well, it's 00:20:54.274 --> 00:21:03.306 - the transfer for the whole year. Those are more likely for six months, just looking at the numbers. 00:21:03.306 --> 00:21:05.022 - But I'm certainly, 00:21:08.194 --> 00:21:15.183 - Yeah, and maybe next quarter that will be kind of self-evident. In the future, when you give us these 00:21:15.183 --> 00:21:22.446 - transfer reports, are you going to include these earlier transfers? Or maybe I should say can you include 00:21:22.446 --> 00:21:29.298 - the earlier transfers? Yeah, I would categorize it for like quarter one, quarter two, et cetera, so 00:21:29.298 --> 00:21:36.355 - that then we can look at the whole thing. I can certainly add additional information. Okay, yeah, just 00:21:36.355 --> 00:21:37.246 - so that then 00:21:37.378 --> 00:21:56.011 - So then by the end of the year, we have all of it. Just a second. Sorry, I'm actually just gonna get 00:21:56.011 --> 00:22:06.526 - some. Okay, actually those numbers there are the annual. 00:22:07.586 --> 00:22:17.602 - their annual. Yes. Okay. For the leases. Yeah. So that's $213,000 is the annual lease payment for the, 00:22:17.602 --> 00:22:27.716 - you know, street garage. And $500,000 is the annual lease payment for the street garage. And those come 00:22:27.716 --> 00:22:37.246 - out of TIF? Yes. As opposed to coming out of like income produced by those garages? Correct. Yes. 00:22:37.570 --> 00:22:54.124 - The garage maintenance and operations are paid for by the revenue raised by the garages, but the capital 00:22:54.124 --> 00:23:05.790 - expense of the garages is paid for by. Anything else about the transfers? 00:23:08.194 --> 00:23:15.288 - be going back to the. Well, no, I mean, I intentionally went to press to transfers because it was answering 00:23:15.288 --> 00:23:21.857 - one of them. Yeah, thank you. Okay, so let's see. And then Councilmember Piedmont Smith also wanted 00:23:21.857 --> 00:23:28.623 - to know what fund was being used to pay the flop contract. Now I know that I provided that information 00:23:28.623 --> 00:23:35.191 - as part of the report was provided to Council on flop. I can also find it now. I don't know if your 00:23:35.191 --> 00:23:36.702 - question was answered. 00:23:38.274 --> 00:23:50.669 - Well, I think it was answered in the written before. But yeah, it was split between a couple of different 00:23:50.669 --> 00:23:58.270 - funds and a couple of different budgets, both hand and children. 00:24:04.642 --> 00:24:13.618 - Council Member Piedmont-Smith also wondered about the ESD line that 53% was already spent and 89% of 00:24:13.618 --> 00:24:22.506 - the organizational support was spent and Deputy Mayor Knapp reported that she thought it might have 00:24:22.506 --> 00:24:31.038 - been BT and indeed she was correct. So the expenditures out of the organizational support line, 00:24:31.330 --> 00:24:42.038 - There are a couple of small ones, but the four big ones are Bloomington Public Transportation Corporation, 00:24:42.038 --> 00:24:52.546 - that's $3,806,100. Downtown Bloomington Inc, $25,000. BCT Management, $80,000. And Community Foundation, 00:24:52.546 --> 00:24:57.150 - our following Project 46 membership, $40,000. 00:25:04.290 --> 00:25:32.766 - Yeah, so when we look at all the SEA one other legislative changes Yeah Okay, so then 00:25:33.730 --> 00:25:41.648 - Council Member Piedmont-Smith also inquired about whether the written report from READY that had been 00:25:41.648 --> 00:25:49.567 - referenced at the meeting they had attended had been completed. And indeed, it had the financial plan 00:25:49.567 --> 00:25:57.330 - through 12-31-2026. Sorry, I filled my notes wrong. 2025, sorry, was provided. I don't know if that 00:25:57.330 --> 00:26:03.230 - goes over the packet as well. Yeah, let's see. That should pull it up here. 00:26:04.546 --> 00:26:14.465 - Yeah, I think that's like the Yeah. That's that first financial update. I'm assuming that that's for 00:26:14.465 --> 00:26:24.286 - me, right? Yes, limited financial update. Exactly. So, yes, this is the plan, the update from 1231. 00:26:24.578 --> 00:26:31.404 - already is currently working on quarterly updates through 331. And the major change that I would expect 00:26:31.404 --> 00:26:38.032 - to see in the next quarterly update is going to be the extension of a lit restructuring from 2028 to 00:26:38.032 --> 00:26:44.596 - 2029. That was a more recent legislative change, as well as some different assumptions about lit to 00:26:44.596 --> 00:26:51.356 - model the other changes that we already talked about, spent some time talking about what the different 00:26:51.356 --> 00:26:52.734 - options are for lit. 00:26:52.930 --> 00:27:02.026 - This financial plan, I think, requires a deeper dive and should be subject to its own meeting. But I 00:27:02.026 --> 00:27:11.032 - did want to at least give you the most current version that I have, just so you can look at it. And 00:27:11.032 --> 00:27:21.118 - I will call attention to just a couple of things. So if you look at any of the funds that receive property tax, 00:27:21.570 --> 00:27:30.802 - Report does try to estimate the effect of SCA-1 viral attacks. So, and what you can see from these numbers 00:27:30.802 --> 00:27:39.776 - is that the impact is real, but relatively modest compared to the overall average age 22 of our packet. 00:27:39.776 --> 00:27:43.486 - Sorry. It's the general fund. You're good. 00:27:49.826 --> 00:28:02.542 - I'm sorry to interrupt you. What is the shine projections for SCA? I'm sorry. Basically, I just wanted 00:28:02.542 --> 00:28:15.134 - to call attention to the fact that REES included their estimates of those SCA-1 property tax impacts. 00:28:15.362 --> 00:28:24.230 - for each of the funds that receive property tax. And just to kind of remind you right now, the general 00:28:24.230 --> 00:28:33.183 - fund receives property tax, the parks general fund receives property tax. And as of 2026, for the first 00:28:33.183 --> 00:28:42.309 - time, you've allocated property tax to NVH. And so for each of those funds in this financial plan, you'll 00:28:42.309 --> 00:28:45.150 - see a line for the SEA-1 impact. 00:28:45.762 --> 00:28:54.047 - And you'll see that the projection here that I've got on the screen, it's kind of highlighted in blue 00:28:54.047 --> 00:29:02.170 - here, shows that out to 2030, the projection would be is of about $560,000 loss from the impacts of 00:29:02.170 --> 00:29:10.455 - the new changes to SEDHM. So that's why I describe it as real but modest. It's non-zero, non-trivial, 00:29:10.455 --> 00:29:14.110 - but it's not as catastrophic as it has been. 00:29:14.338 --> 00:29:24.585 - Well, and they've added the new LIT estimated incomes, estimated revenues, right? Yes. And that's what 00:29:24.585 --> 00:29:34.534 - I'm saying. That is pretty much all going to change. That is all pretty rough. So I would take this 00:29:34.534 --> 00:29:40.702 - version with respect to the LIT with a serious grain of salt. 00:29:41.186 --> 00:29:49.646 - Among other things, it's going to, the change was pushed out legislatively this spring from 2020. Yeah. 00:29:49.646 --> 00:29:58.350 - Can you help me understand this a little bit? Because we currently have some lit, but where is our current 00:29:58.350 --> 00:30:06.647 - lit on this chart? Because like all this stuff in blue, it's like there's nothing until 2028 because- 00:30:06.647 --> 00:30:09.982 - Well, that first line, the second chunk. 00:30:10.626 --> 00:30:19.067 - where it says here, local income tax lit certified shares. Yeah. That's the existing lit. There it is. 00:30:19.067 --> 00:30:27.755 - You see they projected going away 20.8, but that's not 20.9. That's not 20.9. Right. The way that they've 00:30:27.755 --> 00:30:36.196 - reflected this new change in lit is that they both reflect the new, they zero out certified shares and 00:30:36.196 --> 00:30:39.966 - they zero out all the other ones that we got. 00:30:40.290 --> 00:30:48.080 - public safety, which are different funds. They zero them out. They added in estimates of the new grid 00:30:48.080 --> 00:30:55.870 - structure, which I think is not very valuable right now. Because that also is assuming because we get 00:30:55.870 --> 00:31:03.737 - to set a lift up to a certain point. So did they just set like the maximum that we in theory? Yes, and 00:31:03.737 --> 00:31:09.694 - it doesn't include new changes that came before we talked about the calendar. 00:31:10.178 --> 00:31:17.051 - So they said the maximum. I think those bands when this number of reflect I have not actually gone back 00:31:17.051 --> 00:31:23.726 - and then actually done the math just because like I said it's really not very valuable because there 00:31:23.726 --> 00:31:30.466 - are some of the other changes there and then they also show there a transfer of the cash balance that 00:31:30.466 --> 00:31:36.414 - would be left at the end of the day from those other big funds from public safety led and 00:31:37.442 --> 00:31:48.354 - That's the way that they reflect this phasing out of leg. That's on the revenue side. Then if you scroll 00:31:48.354 --> 00:31:59.474 - down on the same chart, so for general fund, they also reflect a shift of expenditures from public safety, 00:31:59.474 --> 00:32:04.254 - PSAP, and economic development. What are you? 00:32:05.186 --> 00:32:19.519 - Yeah, page 23 at the bottom. So that's. Expenditures. This section is expenditures. Expenditures. And 00:32:19.519 --> 00:32:32.446 - so they're basically, I'm just kind of explaining in broad how they, how they modeled this. 00:32:33.218 --> 00:32:41.319 - phasing out of the one system moving into another. They basically showed all the revenue changes at 00:32:41.319 --> 00:32:49.419 - the top and then the expenditure changes at the bottom. Assuming all those expenditures would be in 00:32:49.419 --> 00:32:57.844 - public safety or economic development, LID and PSAT would then just be moved to the jail. So just going 00:32:57.844 --> 00:33:01.246 - on to the next page. So we're in deficit. 00:33:04.546 --> 00:33:13.364 - over under expenditures. So, uh, $4.4 million plus whatever. And then we have $29 million plus because 00:33:13.364 --> 00:33:22.181 - we've got $19 million coming from the previous blitz, right? Yeah, that would be their estimate of how 00:33:22.181 --> 00:33:30.827 - much would be left. Assuming, you know, we all follow the plan and everything works, right? And that 00:33:30.827 --> 00:33:33.310 - would be left in those other 00:33:33.474 --> 00:33:41.424 - Funds that would just be transferred in general fund. So economic development lipids away. They're just 00:33:41.424 --> 00:33:49.068 - saying, okay, whatever bounds that they transfer back to the general transfer all the cash balance, 00:33:49.068 --> 00:33:57.630 - the expenditures and rentals. So like in the 2028 year, they were, that's why we have such right overage there. 00:33:58.082 --> 00:34:06.647 - Yes, exactly. Like we're like eliminating some funds and so anything left in those funds is getting 00:34:06.647 --> 00:34:15.211 - stuck somewhere else. So that counts as like one year. So I'm sorry, I wanted to ask some questions 00:34:15.211 --> 00:34:23.947 - on the pages that we skipped over cash reserves. Okay. Yeah, I was really hoping to if we're going to 00:34:23.947 --> 00:34:26.174 - do a deep dive into this, 00:34:26.370 --> 00:34:42.155 - I was hoping we would have reviewed it because they'd be able to explain the kind of assumptions. But 00:34:42.155 --> 00:34:48.190 - you're exausted question. Well, we had 00:34:58.626 --> 00:35:13.982 - In 2023, we had huge ending balance. I wonder why that is, because ARCA funds, so we had 106% cash reserves 00:35:13.982 --> 00:35:26.494 - at the end of 2023. What page are you on? I'm on page five. Where are you seeing those? 00:35:27.490 --> 00:35:38.166 - So under the heading 2023 actual, we have under major operating funds in general, you see the second 00:35:38.166 --> 00:35:48.947 - column. Revenue surplus slash deficit. We have revenue surplus of $28 million. And the balance of $50 00:35:48.947 --> 00:35:57.086 - million on expenditure of $47 million. So we were starting 2024, ostensibly, 00:35:58.370 --> 00:36:07.702 - with 106% cash surplus. How is that possible? I don't recall this miracle. Yeah, I will have to look 00:36:07.702 --> 00:36:17.218 - at what assumptions that they use. Like I said, I just got this and I put it in the folder for you all 00:36:17.218 --> 00:36:25.534 - and not had a chance to actually talk with really about any of the numbers that they use. 00:36:25.858 --> 00:36:35.254 - It couldn't be ARPA, it couldn't be because we budgeted a whole bunch of, moved a whole bunch of expenditures 00:36:35.254 --> 00:36:43.881 - and economic development lit, but I'd rather get actual answer to that and speculate. Yeah, I didn't 00:36:43.881 --> 00:36:52.765 - see any fund called ARPA. So, that was a separate fund, so. Yeah. And then the one other thing I wanted 00:36:52.765 --> 00:36:53.790 - to just to, 00:36:54.370 --> 00:37:00.809 - Kind of the broad point I wanted to make and this was something again that we brought up at 00:37:00.809 --> 00:37:07.808 - their presentation when they did on March 13th is that it would The bigger essentially recommending 00:37:07.808 --> 00:37:14.947 - and in order for us to be able to balance our budget that we pull capital expenses out of the All the 00:37:14.947 --> 00:37:17.886 - operating funds and instead long for that 00:37:18.242 --> 00:37:25.469 - So that is reflected in this report. Is that actually realistic? But all the capital expenses will be 00:37:25.469 --> 00:37:32.838 - able to be pulled out of operating funds, probably not. So that's something we're going to have to work 00:37:32.838 --> 00:37:40.348 - with and figure out how to model correctly. But that is reflected. And so if you even look at the general 00:37:40.348 --> 00:37:41.694 - fund, for example, 00:37:53.026 --> 00:38:02.795 - Yeah, so if you look at their general fund spreadsheet, you will see that as the 2027 column, capital 00:38:02.795 --> 00:38:11.703 - outlays have typically been, you know, the general fund of 1.6, 3.8, $6 million, $2 million, 00:38:11.703 --> 00:38:22.238 - but in 2027 on, they showed a zero. So that reflects we've used recommendation for us to have a say for that. 00:38:22.594 --> 00:38:32.728 - Where are you? Sorry, it's on the general fund tab. And I know I'm looking at the spreadsheet. Yeah, 00:38:32.728 --> 00:38:43.966 - yeah, yeah. So it's in the general fund. And a line legal capital outlays. So again, those are the bottom page. 00:39:02.178 --> 00:39:11.577 - Thank you. Thanks for the question while we're close to there. So in terms of the revenue over under 00:39:11.577 --> 00:39:20.883 - expenditures, which is the bottom page that you're currently on. So in the 2025 update through 2025 00:39:20.883 --> 00:39:29.630 - actual way up there, you scroll up. So we really did last year have a deficit of $10 million. 00:39:32.450 --> 00:39:41.107 - that is the case. So do we have anywhere right now where our actual grant balances are? Well, you have 00:39:41.107 --> 00:39:49.764 - these reports. You have the start of the year, this January, one fund balance. Oh, in the reports that 00:39:49.764 --> 00:39:58.673 - I gave you? Yeah. No. Okay. That would be another interesting one. Yes, that would be another interesting 00:39:58.673 --> 00:40:01.278 - one. It's an easy report. Yes. 00:40:01.634 --> 00:40:08.513 - Yeah. I didn't think about that until right this second. I think we want that quarter. Yeah. You want 00:40:08.513 --> 00:40:15.460 - that quarter? Yeah. Yeah. That would be concerning. Please. Yes. I didn't think about that until right 00:40:15.460 --> 00:40:22.204 - this second. But yeah, that would be a good one to add into our list of- I'm just going to create a 00:40:22.204 --> 00:40:29.758 - tab. Yeah. I'm just going to say cash. Of probably the same funds that you put into those detail reports. Okay. 00:40:35.682 --> 00:40:44.833 - Anything else on this one? I know we're kind of running out of time. Do we want a cap balance for quarter 00:40:44.833 --> 00:40:54.071 - one at our next meeting or do we just want to wait until quarter two? It's so easy. I can do your quarter. 00:40:54.071 --> 00:41:01.150 - Okay. Great. Fantastic. Thank you. Okay. Anything else about the financial rules? 00:41:06.242 --> 00:41:13.814 - If not, we're ready to move on to the next item. Okay, so this is an update on the audit and state reporting. 00:41:13.814 --> 00:41:20.697 - So at long last, the 2024 Annual Comprehensive Financial Report and audit have been approved by the 00:41:20.697 --> 00:41:27.649 - State Board of Accounts. The report and the audit are posted on the city website and are also posted 00:41:27.649 --> 00:41:35.358 - on the State Board of Accounts public audit portal. I encourage you all to download and read the entire report. 00:41:37.218 --> 00:41:44.556 - But I just want to give a couple of brief summary of the results of the audit. Again, you're encouraged 00:41:44.556 --> 00:41:51.612 - to actually go to it yourself. There were two audit reports. One was from the auditors on what they 00:41:51.612 --> 00:41:58.668 - call the audit of the financial statements. That's all the finances. Then the other one is known as 00:41:58.668 --> 00:42:05.935 - a single audit report, which is on federal grant compliance. Start out with the audit on the financial 00:42:05.935 --> 00:42:06.782 - statements. 00:42:07.266 --> 00:42:14.496 - The auditors provided what's known as an unmodified opinion. This used to be called an unqualified opinion, 00:42:14.496 --> 00:42:21.256 - but it's basically the opinion you want with no material findings for issues with go and concern. So 00:42:21.256 --> 00:42:28.017 - that's on the financials. The single audit report, like I said, is not on the financials itself, but 00:42:28.017 --> 00:42:34.778 - it is on federal grant compliance. There were two major programs reviewed, the Community Development 00:42:34.778 --> 00:42:36.318 - Block Grants, or CBBG. 00:42:36.578 --> 00:42:42.998 - and coronavirus state and local fiscal recovery funds, otherwise known as ARPA. Both those also did 00:42:42.998 --> 00:42:49.610 - receive an unmodified opinion. However, there are two compliance findings and one is called a material 00:42:49.610 --> 00:42:56.030 - weakness and one a significant deficiency, both that are in the ARPA program. The material weakness 00:42:56.030 --> 00:43:02.707 - was about enforcing certain rules on procurement that are specific to spending federal funds that don't 00:43:02.707 --> 00:43:06.238 - apply to normal procurement with respect to state law. 00:43:06.562 --> 00:43:13.826 - This did require a corrective action plan. We've already put that in place with the changing procedure. 00:43:13.826 --> 00:43:19.134 - The significant deficiency was that one employee in the controller's office 00:43:19.266 --> 00:43:25.501 - Submitted the required quarterly ARPA expenditures without a review, which led to a mismatch between 00:43:25.501 --> 00:43:31.984 - reports. And this corrective action plan was actually already put in place in the third quarter of 2025. 00:43:31.984 --> 00:43:38.466 - So this is just one of the real downsides of among many of being late on your audience is that something 00:43:38.466 --> 00:43:44.763 - can already be fixed, have been fixed in the previous year, but still show up, continue to show up in 00:43:44.763 --> 00:43:45.566 - the results. 00:43:45.986 --> 00:43:58.152 - Can you say that sent one again, the significant deficiency? Yeah, so it was that there's a required 00:43:58.152 --> 00:44:10.558 - quarterly ARCO reports that people submits to the federal government. We have a one employee basically 00:44:10.754 --> 00:44:18.846 - submitted that report without it being reviewed by another employee, and that caused error. Essentially, 00:44:18.846 --> 00:44:26.861 - I think a report was correct, but it didn't match something else that showed in another report. So it's 00:44:26.861 --> 00:44:35.262 - basically a mismatch between reports. And so the corrective action was to have dual control, was to have one 00:44:35.490 --> 00:44:45.462 - Submitter and one reviewer. And like I said, that had already been put in place in mid-July 1, 2025. 00:44:45.462 --> 00:44:55.829 - So that's that issue. Neither of those findings resulted in a qualified opinion, which the 2023 findings 00:44:55.829 --> 00:44:57.310 - did result in. 00:44:57.410 --> 00:45:04.268 - But both what I mentioned, the weakness and the deficiency did require corrective action plan, which 00:45:04.268 --> 00:45:11.127 - I just briefly described. Both of those are also included in the audit report. So again, the reports 00:45:11.127 --> 00:45:17.918 - are out there and I encourage you to read them. We also have a meeting scheduled after this meeting 00:45:17.918 --> 00:45:24.708 - today with our auditor and GAP compiler and state board and council to discuss the project plan and 00:45:24.708 --> 00:45:26.270 - timeline for the 2025. 00:45:26.754 --> 00:45:34.446 - And then finally, this was something that came up, I think, last meeting where I wasn't in attendance, 00:45:34.446 --> 00:45:42.214 - but I thought I would mention that the annual financial reports or AFRs have been stored on our website 00:45:42.214 --> 00:45:49.682 - where we provide both the archived PDF reports as well as a link to the official reports on state's 00:45:49.682 --> 00:45:55.134 - gateways. So they're both there. And that's all I have on state reports. 00:45:56.002 --> 00:46:04.551 - Any other questions? Okay. Then finally, I want to talk a little bit about bonds. And this is just kind 00:46:04.551 --> 00:46:13.100 - of a sneak preview of what we're going to be talking about in more detail in the future. So let me back 00:46:13.100 --> 00:46:21.814 - up a little bit and talk about broadly, there are two categories of bonds, general obligation and refugee 00:46:21.814 --> 00:46:22.718 - bonds. And 00:46:23.010 --> 00:46:29.248 - General obligation in Indiana, a general obligation bond comes with a property tax rate to service that 00:46:29.248 --> 00:46:35.307 - debt. So in other words, with the general obligation bond, we aren't paying the debt out of existing 00:46:35.307 --> 00:46:41.425 - revenues. We're actually establishing a property tax rate to pay that debt. And you may remember from 00:46:41.425 --> 00:46:47.543 - the presentation that we gave back on March 13th, I'm sure you will remember the presentation. But it 00:46:47.543 --> 00:46:52.222 - is actually, and they have a good chart that shows all of this in the packet, 00:46:52.898 --> 00:47:03.905 - for that date. We have six outstanding general obligation bonds currently for a total tax rate of 0.0868, 00:47:03.905 --> 00:47:14.912 - which is usually referred to as 8.68 cents. What was it, 0.08? Yeah, we say 8.68 cents, so 0.0868. That's 00:47:14.912 --> 00:47:21.246 - a total tax rate. 8.68 cents per $100 on set value of bonds. 00:47:21.570 --> 00:47:29.203 - Those two general obligation laws. We have six of them. And that's the total. That's the total. And 00:47:29.203 --> 00:47:36.836 - that packet from the meeting has a list of each of those with the tax rate along with the projected 00:47:36.836 --> 00:47:44.621 - tax rates for each sub-supervisor. So you can see, for example, when each of them drop off, there are 00:47:44.621 --> 00:47:51.262 - a lot of restrictions on general obligation dance, some of which can be quite complex. 00:47:51.362 --> 00:47:59.349 - are described the constitutional debt limit a number of times, but that's actually kind of one of the 00:47:59.349 --> 00:48:07.336 - less impactful remnants for us because our capacity is so high, but there are lots of other limits to 00:48:07.336 --> 00:48:14.462 - bombing in addition to the constitutional debt limit, including new restrictions on rates. 00:48:14.594 --> 00:48:21.272 - And there are also various thresholds for petition for monstrance and for referendum. So if you go above 00:48:21.272 --> 00:48:27.886 - a certain point, then you're subject to the petition to a monstrance process. If you go above a certain 00:48:27.886 --> 00:48:34.373 - point beyond that, you're in territory where it helps us change. So it's just kind of, you know, it's 00:48:34.373 --> 00:48:35.454 - just a matter of 00:48:35.554 --> 00:48:41.609 - General background, SEA 1 also put in place some additional controls, including a cooling off period 00:48:41.609 --> 00:48:48.144 - on short-term bonds. You may remember that at that time, we, like all other municipalities, were essentially 00:48:48.144 --> 00:48:54.319 - told that we could no longer use bonds for annual funding capital projects. And since then, a lot more 00:48:54.319 --> 00:49:00.494 - clarity has emerged. Bond capsules are telling municipalities that bonds still can be used in the same 00:49:00.494 --> 00:49:04.990 - way that they used before. They just have to be larger, longer-term bonds. 00:49:06.178 --> 00:49:14.174 - Because there are so many complexities associated with general obligation bonding, you know, more detailed 00:49:14.174 --> 00:49:21.871 - discussions need to take place alongside our financial advisor about bond accounts. In general though, 00:49:21.871 --> 00:49:27.326 - bond, the general obligations are desirable because they're very secure. 00:49:27.746 --> 00:49:34.183 - So they're going to see the pretty much the lowest interest rates that they would expect. And then also 00:49:34.183 --> 00:49:40.867 - because they come with their own tax rates of services, so they're not being paid out of existing revenues. 00:49:40.867 --> 00:49:47.427 - So that's your general obligation bonds. Then the other kind of bonds, the broad category. Again, there's 00:49:47.427 --> 00:49:51.326 - a ton of nuance here, but the other broad category is revenue. 00:49:51.554 --> 00:49:57.365 - And that's where you're pledging with some sort of existing revenue stream, which can be user fees, 00:49:57.365 --> 00:50:03.467 - lit, tax increment finance. But the key is that with revenue bond is that unlike your general obligation 00:50:03.467 --> 00:50:09.627 - bond, the revenue bonds don't come with a separate and new property tax rate to service. So some examples 00:50:09.627 --> 00:50:15.496 - of revenue bonds that we have, the convention center, we have a revenue bond that's serviced by food 00:50:15.496 --> 00:50:16.542 - and beverage tax. 00:50:16.898 --> 00:50:25.300 - We have the Twin Lakes Recreation Center bond that's serviced by Parks Revenue. The big one we have 00:50:25.300 --> 00:50:33.703 - is what's known as a general revenue bond that was used to purchase Showers West as well as build a 00:50:33.703 --> 00:50:42.441 - fire resistance training center with the fire station referred. What did you call it? A general revenue 00:50:42.441 --> 00:50:45.886 - bond. Isn't that the public safety bond? 00:50:46.114 --> 00:50:53.882 - I mean, I think that was maybe the term that you used in the administration at that time, but that is, 00:50:53.882 --> 00:51:01.575 - it is a general revenue bond. It doesn't pledge public safety or pledges economic development. Right, 00:51:01.575 --> 00:51:09.267 - but the purpose was public safety. So we call it a public safety general bond. So what is the general 00:51:09.267 --> 00:51:13.566 - revenue bond? The general revenue bond really means that 00:51:14.530 --> 00:51:21.265 - We're not pledging some very specific type of revenue like parks, parks revenue or food and weather 00:51:21.265 --> 00:51:28.472 - check. They were really pledging more general revenue source. And that's in this case, that's the economic 00:51:28.472 --> 00:51:35.341 - development debt. But it's not a general obligation. That's the key. It didn't come with property tax 00:51:35.341 --> 00:51:42.750 - or anything. So you're paying it out of your, we are paying it out of our existing economic development debt. 00:51:43.138 --> 00:51:49.861 - And this is the bomb that, honestly, I watched the most carefully because we know that income taxes 00:51:49.861 --> 00:51:56.719 - could be changing drastically. We know that the economic development is going away by now in 2019. We 00:51:56.719 --> 00:52:03.912 - still have to pay that bond. So we basically, because it's not a general obligation because it's a general 00:52:03.912 --> 00:52:09.694 - revenue bond, we have to pay it out of pie regardless of what happens to the economy. 00:52:13.666 --> 00:52:23.001 - I'll have some reason. Okay. So, all right. So, yeah, my understanding was that it was, it was a public 00:52:23.001 --> 00:52:32.157 - safety bond because that's part of the project. The projects were public safety. Fire, you know, some 00:52:32.157 --> 00:52:41.402 - fire offices there, right, for that purpose. But since those are going away, those revenue we're going 00:52:41.402 --> 00:52:43.646 - to pay from the general, 00:52:44.546 --> 00:52:52.330 - Yeah, or any additional LIT that you have. So yeah, essential LIT to pay that out of our existing revenue 00:52:52.330 --> 00:52:59.819 - sources. Can we get the details on that for next time? Like how much we'll still owe, how much people 00:52:59.819 --> 00:53:06.942 - will still owe after the, yes, the, you know, right there anyway? Or is that in there somewhere? 00:53:07.842 --> 00:53:14.505 - It should be included in the numbers, but maybe not called out directly. We can certainly go over the 00:53:14.505 --> 00:53:21.299 - mobilization schedule for that specific bond. That would be helpful. And so in terms of the requirement 00:53:21.299 --> 00:53:28.094 - of having public safety in there, that's written into the bond language itself, which is different than 00:53:28.094 --> 00:53:34.757 - categorizing it as they can go bond or out of bond. It's like part of the bond paperwork is, what are 00:53:34.757 --> 00:53:37.566 - you actually going to spend this money on? 00:53:37.762 --> 00:53:47.593 - In that, we spent it on public safety through purchase in part of that building. And building of a fire. 00:53:47.593 --> 00:53:57.049 - What I'm describing here is about the financing and how the bond is being paid. Associated with each 00:53:57.049 --> 00:54:06.974 - bond is an appropriation ordinance and a bond ordinance specifies exactly what it's going to be spending. 00:54:07.490 --> 00:54:15.321 - quite strict. So it's just less specific to each individual. Yeah. Yeah. Okay. So one thing, oh, and 00:54:15.321 --> 00:54:23.151 - then the other kind of revenue bond that we have a lot of are TIFR. Not general obligation, but they 00:54:23.151 --> 00:54:31.370 - don't have separate tax rate, but they're paid out of TIFR. One thing that all these bonds have in common 00:54:31.370 --> 00:54:36.254 - is that city council wants to move. So it doesn't matter what, 00:54:36.354 --> 00:54:42.692 - what kind we're talking about if they are tools to come into existence. And the reason why I'm bringing 00:54:42.692 --> 00:54:49.091 - up the topic of bonds, it's just we're beginning to discuss bonding strategy for this year. And I wanted 00:54:49.091 --> 00:54:55.247 - to bring you in the loop with the earliest possible stage. So right now we're in the early stages of 00:54:55.247 --> 00:55:01.829 - planning, but I just wanted to let you kind of know what we're thinking. And I kind of think this committee 00:55:01.829 --> 00:55:05.790 - is the most appropriate forum for these early stage discussions. 00:55:06.626 --> 00:55:12.447 - certainly open anything else that they would like. So bonds that we're currently thinking about, one 00:55:12.447 --> 00:55:18.498 - would be a general obligation bond for a public works health center. This is streets, fleet maintenance, 00:55:18.498 --> 00:55:24.434 - and covered by heavy vehicles. And I know Public Works Director Wason would be glad to give any of you 00:55:24.434 --> 00:55:30.197 - tours of the existing facilities and the struggles that they have with them. It's worth a look just 00:55:30.197 --> 00:55:35.038 - to see how badly they need them. I know. So that's one we're definitely looking at. 00:55:35.522 --> 00:55:41.962 - and then a parks general obligation bond to address what I think is both your and our top priority in 00:55:41.962 --> 00:55:48.401 - the administration, maintenance and enhancement of city assets. What did you say, a parks bond? Yeah, 00:55:48.401 --> 00:55:55.157 - but I want to make it clear that we're talking about a parks bond. We're not talking about buying building 00:55:55.157 --> 00:56:01.028 - new parks. We're talking about maintenance of existing facilities and parks is still working 00:56:01.028 --> 00:56:03.806 - on prioritization based on the master plan. 00:56:04.098 --> 00:56:10.636 - me if there's parks on student is part four they also do maybe you do okay yeah yeah and so i'm assuming 00:56:10.636 --> 00:56:17.237 - that any go bonds from that are going to be part of essentially their massive money that's exactly that's 00:56:17.237 --> 00:56:23.464 - what they're working on prioritization basin but again this is what we're talking about taking care 00:56:23.464 --> 00:56:28.446 - of our our stuff uh and then similarly on the simple city side that we would um 00:56:28.642 --> 00:56:35.007 - We will probably propose something similar that would be dedicated to maintenance and enhancement of 00:56:35.007 --> 00:56:41.309 - city assets and this comes back to read these recommendation also that we move capital projects out 00:56:41.309 --> 00:56:43.326 - of the the operational budgets. 00:56:43.490 --> 00:56:49.619 - Would that be a GM bond? That would also be a GM bond, yes. And we've not created a list of potential 00:56:49.619 --> 00:56:55.689 - projects yet, but obviously we're going to involve you in the project prioritization. And again, the 00:56:55.689 --> 00:57:02.239 - bond would be for capital projects that you already have to be paying out of one of our existing operational 00:57:02.239 --> 00:57:08.549 - funds to be able to maintain the payments of our existing assets. So those are on the general obligation 00:57:08.549 --> 00:57:12.094 - side. And we would have multiple go bonds every year? Yes. 00:57:12.290 --> 00:57:19.832 - Like new ones? Yeah, the restrictions are more on the total rates and size of the project also. So they're 00:57:19.832 --> 00:57:27.233 - very, and that's why I say when we actually get closer to being specific, we need bond council to really 00:57:27.233 --> 00:57:34.281 - tell us, give us the details. I just want to know, but it's 929 right now. Yeah, sorry, I literally 00:57:34.281 --> 00:57:40.766 - have one more bullet. Great. And then you may also see some requests for TIF revenue bonds. 00:57:40.898 --> 00:57:47.144 - But those would be needed to be initiated by the Redevelopment Commission. The two that you might hear 00:57:47.144 --> 00:57:53.573 - about, of course, Wednesday night, you'll remember the discussion on the Senate PD. It would not surprise 00:57:53.573 --> 00:57:59.698 - me to see a request for a Senate TIF bond, but we don't have the timeline or scope on that. And then 00:57:59.698 --> 00:58:05.762 - similarly, you may see a request for a TIF revenue bond for police station construction. But again, 00:58:05.762 --> 00:58:09.886 - this would have to be initiated by the artist, a scope or timeline. 00:58:11.810 --> 00:58:19.289 - So that's where I am. All right, any questions fast on bond before we go to the recovery comment? I'm 00:58:19.289 --> 00:58:26.622 - just curious about what's the estimated cost of this for the board of operations? We do not have an 00:58:26.622 --> 00:58:33.735 - estimated cost yet. So I mean, what has been presented is often that it is needed for a put mat, 00:58:33.735 --> 00:58:41.214 - you know, to protect the put mat. But I wonder if we can do it on a sheet, but just having it covered 00:58:42.082 --> 00:58:48.980 - Like if you go, if you look over in Bloomington South, they have large cardboard systems for the process, 00:58:48.980 --> 00:58:55.487 - not all of them, but I mean, is that an option? I mean, should we have other means of, you know, we 00:58:55.487 --> 00:59:01.994 - can help you? I guess I'm just starting it out there because I don't know when to throw it out, so. 00:59:01.994 --> 00:59:07.070 - Yeah, I will say that I think that Public Works Department is well aware that 00:59:07.714 --> 00:59:14.834 - of the need to constrain that. If we're under 15 in the spring, then it would be great to have. Well, 00:59:14.834 --> 00:59:21.744 - their work environment is terrible. So I mean, just their staff room is like a dingy old basement. 00:59:21.744 --> 00:59:28.724 - It's not. It's actually a loft, but it's a dingy old basement. Can we bring in the flowers? I mean, 00:59:28.724 --> 00:59:36.542 - we've got empty space there. No, I mean, the staff room for the mechanics to have their lunch and take a break. 00:59:36.930 --> 00:59:43.273 - Believe me, there are a lot of constraints on the wish list that one might have for the ideal public 00:59:43.273 --> 00:59:49.804 - works office center. But yeah, I think it would probably be better to have that conversation with Adam. 00:59:49.804 --> 00:59:56.209 - Well, I think that it really sounds like we need to get out of here to talk about sanitation and then 00:59:56.209 --> 01:00:02.238 - also the public works thing. I do agree that bringing bonds through proposals to this committee 01:00:02.466 --> 01:00:08.821 - would be a great step. The other things that I think we consider is before we raise tax rates, 01:00:08.821 --> 01:00:15.845 - before we, you know, cover new bonds through debt, that, you know, we used to have sort of a contingency 01:00:15.845 --> 01:00:22.534 - plan in case of economic lean times where every department had to basically have a contingency plan 01:00:22.534 --> 01:00:29.290 - to reduce their spending by 5%, 10%, whatever it was. I mean, I think there were different grades of 01:00:29.290 --> 01:00:30.494 - reduced spending. 01:00:30.626 --> 01:00:36.327 - Some of it was just, you know, we're not going to take as many trips. We're not going to take, you know, 01:00:36.327 --> 01:00:41.864 - we're going to cut back on supplies. You know, some of the things like that are, is that happening as 01:00:41.864 --> 01:00:47.402 - well. In other words, so if we're going to raise rates, I can say we're trying to, we're working with 01:00:47.402 --> 01:00:48.542 - only the government. 01:00:49.506 --> 01:00:56.780 - You know, we're taking the blow that if there's a blow, I don't know if it's a lot of that has already 01:00:56.780 --> 01:01:03.842 - happened over the years. I will say that we are not the administration. So you're not proposing any 01:01:03.842 --> 01:01:11.468 - new positions, which I was unusual. I mean, we are we are preparing for the kind of the 2029 cliff already. 01:01:11.468 --> 01:01:17.118 - And I really anticipate that plans for potential cuts. I mean, we don't want to 01:01:17.666 --> 01:01:23.283 - Preemptive a cut, especially when the legislative environment is still alive. There's still going to 01:01:23.283 --> 01:01:29.068 - be additional changes with respect to legislation. So you don't want to lay people off while, you know, 01:01:29.068 --> 01:01:34.685 - before the fourth student. Yes, I would anticipate that there will be plans for contingencies. And I 01:01:34.685 --> 01:01:40.414 - don't want to sound like I want to get you to too, but I'm also not favorable to deferred maintenance. 01:01:42.786 --> 01:01:49.847 - That is what we are fighting. There's a trade off. So anyway, I don't mean to keep us, but that's general. 01:01:49.847 --> 01:01:56.578 - Any other questions, comments from members about bonding report? All right, great. Thank you so much, 01:01:56.578 --> 01:02:03.441 - Jeff. Let's go ahead and go to public comment. There's nobody in the room, but if there are any members 01:02:03.441 --> 01:02:09.182 - of the public online who would like to comment on any parts of the controller updates, 01:02:09.538 --> 01:02:15.910 - Looks like Mr. Keough has raised his hand. I'll go ahead and time us on my watch for about three minutes. 01:02:15.910 --> 01:02:21.981 - And whenever you're on mute, if you can go ahead and state your name for the record. Kevin Keough, a 01:02:21.981 --> 01:02:28.112 - resident of Bloomington, a retired CPA and current IT auditor. I'd like to start by acknowledging the 01:02:28.112 --> 01:02:33.822 - city's efforts to publish the 2024 Annual Comprehension Financial Report, published this week. 01:02:33.954 --> 01:02:39.595 - This document is easily accessible to the public and is a critical step towards fiscal transparency 01:02:39.595 --> 01:02:42.302 - and accountability. However, as a professional, 01:02:42.370 --> 01:02:49.395 - who has just within the last year started to review these reports closely. I have two specific report 01:02:49.395 --> 01:02:56.627 - areas concerned where I think believe require further attention to ensure the public is receiving clear, 01:02:56.627 --> 01:03:03.721 - reliable information. The first is on the general fund budget to actual variance schedule. If you look 01:03:03.721 --> 01:03:09.438 - at the table of contents of the ACFR, it's page 75. The PDF counter, it's page 94. 01:03:09.538 --> 01:03:16.706 - I observed significant changes, particularly in the reporting of the fund balance at the beginning of 01:03:16.706 --> 01:03:23.943 - the year when comparing this line to the previous year's ACFR for the same schedule. There is an error 01:03:23.943 --> 01:03:30.970 - with the 2023 ACFR schedule. It seems to have been corrected in 2024. Also, such material variances 01:03:30.970 --> 01:03:32.446 - in financial reports 01:03:32.578 --> 01:03:40.246 - generally require a clear accompanying narrative to explain these line item variances. Without this 01:03:40.246 --> 01:03:48.374 - context, the average citizens, or even the seasoned analysts, cannot effectively assess the city's fiscal 01:03:48.374 --> 01:03:55.198 - health or accuracy of these variances. The next area is Table 12, the legal debt margin. 01:03:55.522 --> 01:04:02.028 - Following the discussion with the fiscal committee with the Reedy consultants, I'm concerned that the 01:04:02.028 --> 01:04:08.534 - current presentation of Table 12 lacks the necessary clarity and detail expected of a municipality of 01:04:08.534 --> 01:04:15.422 - Bloomington size. It doesn't have all the three units in the same way Reedy presented the same information. 01:04:15.522 --> 01:04:21.837 - I would like to point out that the City of Fort Wade, you can use that as a benchmark, they have three 01:04:21.837 --> 01:04:27.600 - units much like Bloomington. It is clear that Bloomington can provide a much more transparent 01:04:27.600 --> 01:04:32.382 - and comprehensive breakdown of our legal debt margins much the way Reedy did. 01:04:32.770 --> 01:04:38.459 - A public trust is built on a foundation of accurate, transparent, and easy to understand financial data. 01:04:38.459 --> 01:04:43.985 - I urge the controller's office to provide the missing narrative for budget to actual variances and to 01:04:43.985 --> 01:04:49.457 - commit to adopting a more transparent, like Fort Wayne, for the debt margin table. That includes all 01:04:49.457 --> 01:04:55.742 - the units in future reports. Thank you for your time and opportunity to comment on these vital transparency issues. 01:04:58.050 --> 01:05:06.469 - Thank you. So anybody else on Zoom who would like to make a comment? You can see all the other hands 01:05:06.469 --> 01:05:14.888 - on the big screen. Claire Crossley, is there? No. Are all people who are up there? Yeah. Okay. Yeah. 01:05:14.888 --> 01:05:23.390 - I don't see any other answers right now. Okay, fantastic. The only thing left then is the charm vent. 01:05:24.290 --> 01:05:32.372 - I do before I do that, our next meeting is going to be two weeks from today on, let's see, May 8th. 01:05:32.372 --> 01:05:40.615 - Is that what's on there? Yes, it is, May 8th, and that one is going to be a council-based one. If you 01:05:40.615 --> 01:05:48.696 - guys recall, our last one, it's assignments related to the elected official salary stuff. With this 01:05:48.696 --> 01:05:52.414 - development map, we're going to rewrite that. 01:05:52.738 --> 01:06:01.258 - This is why there's like a good month we can write this down from the call right the second principles. 01:06:01.258 --> 01:06:09.450 - Yes, the guiding principles, you're going to assess those and potentially do some some edits around 01:06:09.450 --> 01:06:16.414 - them. And Dave and I did actually get together, talked about little data already and 01:06:16.930 --> 01:06:23.472 - looking at comparisons between other second class cities. Updating the spreadsheet that Clark Holden 01:06:23.472 --> 01:06:30.467 - started a couple years ago in 2004 when we had that ad hoc committee and also we added some other potential 01:06:30.467 --> 01:06:37.139 - cities in and talked about different data we want to get from those cities. So in two weeks from today 01:06:37.139 --> 01:06:43.681 - we'll go ahead and start talking about those kind of report out and decide where we want to go next. 01:06:43.681 --> 01:06:46.142 - I will also work to get in touch with 01:06:46.594 --> 01:06:54.678 - and we send a version around sanitation stuff and see if they can come in. Maybe a month from now, we'll 01:06:54.678 --> 01:07:02.377 - talk about that in terms of other than coming in on one of the city days that we have this meeting. 01:07:02.377 --> 01:07:08.382 - Anything else for the order? Great. You're adjourned. Only nine minutes late.