2026-11-09 - Finance Committee

02:27I

04:30>> I

06:32>> I

08:35>> I

10:35>> There we go.

10:40>> Yeah.

10:44>> Resume.

10:44>> Yep.

10:47So right now

10:48>> We're recording.

12:00>> Good evening. I am calling this meeting

12:03to order. I want to welcome everybody to

12:06this evening's meeting of the

12:08Finance Committee for the Board of

12:09Alders. I shall shall by reading the

12:11published notes.

12:14Board of Aldermen notice, New Haven.

12:16The Finance Committee of the New Haven

12:18Board of Aldermen will hold a public

12:20hearing [clears throat] on Thursday,

12:22October 8, 2026 at 6 o'clock p.m. in the

12:27Aldermanic Chambers, 165 Church Street,

12:30New Haven

12:31to hear and act upon the following.

12:35[clears throat] OR 2026-0049

12:39Ordinance amendment of the New Haven

12:41Board of Aldermen to appropriate

12:43ordinance number three

12:45for fiscal year 2026-2027

12:48authorizing the issuance of general

12:50obligation bonds, fiscal year 2026-2027

12:54and appropriating $17,500,000

12:59to fund the Little Gate litigation

13:01self-insurance fund

13:03for the city's settlement

13:05of Carmen versus City of New Haven

13:08et al.

13:10OR 2026-0040

13:14Ordinance amendment of the New Haven

13:16Board of Aldermen

13:17to appropriate ordinance number one for

13:20fiscal year 2025-2026

13:23pursuant to eight of the city charter in

13:26sections 2-385

13:29to 2-385

13:31of the code of ordinances

13:33approving transfer number 26

13:37- 999

13:39to

13:40negative line item balances

13:42for the fiscal year ending June

13:4430, 2026.

13:49LM 2026-0404

13:53Order to read and file the updated

13:55budgetary and financial report

13:58for the month of July 2026

14:01in compliance with article eight five of

14:04the charter.

14:06LM

14:0826-0442

14:11[cough and clears throat]

14:13Order to read and file the updated

14:15budgetary and financial reports

14:18for the month of August 2026 in

14:20compliance with article eight section

14:22five of the charter.

14:28Item dismiss the

14:30under budget is order to read and file

14:33the updated budgetary and financial

14:35reports for the month of September 2026

14:38in compliance with article eight section

14:40five of the charter.

14:46Items are filed at the meeting

14:49in the office of legislative services

14:53165 Church Street second floor New

14:55Haven.

14:56Per order the honorable Adam Marchand

14:58chair

14:59attest Michael Smart

15:02If you need a disability related

15:04accommodation please call three business

15:06days in advance at 203

15:08946 7655

15:12or 203 946

15:148582

15:16Public

15:18can also be submitted via email

15:21to public testimony at newhavenct.com

15:25before 2:00 p.m.

15:30We'll now have

15:33our committee members introduce

15:34themselves starting with myself.

15:38>> Chair

15:41Ward four.

15:42>> Alder Sal Paolillo Ward seven.

15:45>> Alder Adam Marchand chair Ward 25.

15:48>> Alder Ward 29

15:51>> Alder Lila Moore Ward 18.

15:53>> Anna Festa Ward 10.

15:55>> Sarah Barber Myers Ward seven

15:59>> [clears throat]

16:00>> Thank you everyone being

16:02being here.

16:04Apologies for the loss.

16:07Try to bring that in.

16:10So

16:11it it's always fun to listen to the

16:14published notice because

16:17the title of ordinances can be very

16:19stilted and difficult to understand. I

16:21see all those capital letters could

16:22barely read them to know what they are.

16:24So let me in plain language what these

16:26items are.

16:27There are five of them. The first one is

16:31a request from the city to issue $17.5

16:34million

16:36essentially to pay for the

16:43first item. The second item

16:45is the year-end transfer.

16:47When the city closes its books,

16:49it then has to amend the ordinance so

16:51that all of the expenditures are

16:53accurately reflected in the ordinance

16:55amendment ordinance

16:57amendment

16:58from last year.

16:59And the important housekeeping

17:02through every year.

17:03[snorts]

17:06monthly [laughter] financial reports for

17:08the first quarter of this fiscal year.

17:11So for August July, August, and

17:14September.

17:16Um

17:17although we'll probably mostly focus on

17:18September working with that.

17:20So it sounded like a long agenda because

17:23of the words involved, but it's really

17:25essentially

17:26three items.

17:28Bonding,

17:30the year-end transfers,

17:32and

17:33the monthly for the month of September.

17:35Our agenda

17:36And we're going to move in that sequence

17:39starting with first item, the request to

17:41bond $17.5 million

17:45down. And as our city staff are

17:46approaching the table,

17:48let me make a [clears throat] few

17:49announcements. Whenever people come to

17:51the table either to present or to give

17:53testimony,

17:54after they settle themselves at the

17:56table, we ask them to give their names

17:58and addresses for the record.

18:01Um

18:02So he's going to want to do that

18:03shortly.

18:05I also want to ask colleagues uh and

18:08members of the public

18:10please to tune your phones on silent

18:13mode or vibrate mode. My phone never is

18:16not

18:17on that mode.

18:18Um because why would I want to make a

18:21lot of noise?

18:22[clears throat] So if your is not on

18:24silent mode,

18:26if you need to have a conversation with

18:27someone,

18:30proceed without interruptions.

18:32I appreciate your cooperation with this.

18:34Let me acknowledge our colleague all the

18:36Richard

18:39>> So, names and addresses

18:42>> Michael Varni, City Controller, 45

18:45Jefferson Road, Branford, Connecticut.

18:52>> [clears throat]

18:52>> The floor is yours.

18:53>> All right. Thank you, committee.

18:55Um

18:57um

18:59we are before this committee to ask

19:04approval to

19:10or

19:11seek private

19:13placement

19:14for a short-term notice of 17 and a half

19:18million for the most recent settlement

19:27Again, this is similar to the last

19:30ordinance that we heard

19:33I believe about a month and a half ago

19:35related to two other cases.

19:37Um what this ordinance does is

19:40ask the city to

19:49Now, the reason we use 17 and a half

19:51million

19:5516.5

19:56million, but depending on the mechanism

19:59that we use, um there may be some

20:01issuance costs

20:03that

20:06So, you know, we estimate those issuance

20:09costs

20:11based on the

20:14time

20:15could be up to a million dollars

20:19in doing this ordinance.

20:22So again, that's why we are worried

20:24about 17

20:31>> So again in the city

20:33of Barstow we have a couple of

20:35we can go out to

20:38the bond market which as we discussed um

20:41like I said about a month and a half ago

20:44you know the bond market is still

20:48So depending on the timing and the

20:50issuance will determine like the

20:53and so that

20:54that usually comes

20:56um with doing a call

21:00Similar to what we did with the school

21:02construction and anticipation

21:06prior we do

21:10where we utilize um short-term financing

21:13um

21:16private placements

21:18um you know we sometimes reach out

21:22to um some of the larger banks things

21:24like that

21:26or that we don't can't handle this

21:28particular type of

21:31borrowing instrument

21:33Sometimes when you're doing that in a

21:34short term you get more favorable rates

21:38um at least for that period of time

21:41than you would in a public offering

21:45Um

21:46so the ordinance does

21:49those two methods

21:51you know related to this particular set

21:54of banks

21:57Um there is a third option while two

22:00options are

22:03[clears throat]

22:03really reserve

22:05um you know and the approval from the

22:08Board of Aldermen which is you know we

22:10do have

22:14the short-term

22:15if

22:16you know the city ran up against

22:19or anything like that

22:21um

22:22that

22:23utilize until this process is completed

22:27So

22:29that is

22:31ordinance as well.

22:32If the city had to use its capital cash

22:35on a short-term basis. Again, that's as

22:38a last resort option because that would

22:40mean we would have to stop all capital

22:43projects

22:47you know for that time period.

22:50So again, that's what

22:55options again as we go through this

22:57process we really try to look at the

23:00timing.

23:02Again, one of the more favorable ways

23:09next budget cycle is borrowing

23:12so

23:13rates may be more favorable at that

23:15time.

23:19So again, we try to utilize the best

23:22options for the city. So

23:25again,

23:26a couple of different ways

23:28which is why the ordinance is written

23:30you know to give us those different

23:32options.

23:34So again, this is for 17 and 1/2

23:37million. The settlement is actually 16.5

23:41we're estimating it could be less but

23:44we're estimating you know up to dollars

23:47of issuance costs

23:49depending on the option that we use

23:53for this particular case.

23:57>> That's couple of the

23:59to doing the private placement as we

24:01don't want to need

24:06we have

24:09two rating agencies Fitch and

24:14positive stable

24:16which was

24:20considering

24:224 million dollar deficit

24:26with the private placement.

24:28The other

24:30waiting until the next

25:08>> Happy to answer any questions.

25:12>> Thank you for that.

25:14We'll now hear from members of the

25:15committee.

25:29The floor is this evening.

25:35And the question is what's the most

25:36responsible fiscal mechanism for doing

25:38it?

25:40I invite colleagues to ask questions

25:42to get further explanation of the

25:44options that the city has presented and

25:46maybe some

25:48So having said that the queue is open.

25:50You can have a look to see who

25:52asks questions.

25:59>> Thank you Mr. [clears throat] Chair.

26:02Just a couple of things I

26:05some of the questions I have

26:07with

26:09the funding.

26:10But also there's interest here that

26:12we're not accounting for

26:17total debt service here money bond

26:20an additional 8.75

26:23So is that just an estimate

26:27or

26:28>> So the estimated debt service impact

26:30statement that you have

26:32is based on prior borrowings and the

26:36interest rate will be determined

26:38[clears throat] by

26:43the bond market when we outlines an

26:46estimated for

26:48future

26:4920 year bonds

26:53period and borrowings is included in the

26:56general fund

26:58debt service.

26:59So those numbers you know will be added

27:03each fiscal year

27:04debt service payment

27:06in the general fund as part of the

27:08budget process.

27:11>> So

27:12these numbers and keep focusing on 17

27:15like more than that the interest. So as

27:18long as we budget each year what we will

27:21know at some point what that interest is

27:24that's how we're going to manage

27:25>> Whatever the final determination is is

27:28what we budget on the city has

27:33that. So we usually you know that's the

27:36fixed cost

27:40debt service

27:44And and we're still not sure you gave us

27:46these different options. We just have to

27:47figure out which one is the best option

27:50at that moment.

27:51>> So right now right that's what we're

27:53figuring out with the last one that we

27:55set up. We're in the process of

27:56finishing that one. Uh we'll take a look

27:58at this one but I think based on the

28:00timing um

28:02we may look at you know short term and

28:04then long term options.

28:06With these settlements

28:10period we have generally

28:13you know have to [laughter] pay the

28:14settlements within a certain time frame.

28:19>> is our time frame?

28:21>> Um we work we tend to work these out

28:25once we

28:27have the or the

28:29approval on these. Um the last one we

28:31said 90 days you know we could possibly

28:34do 90 days again after

28:41>> the other attorney as we're going

28:43through this process.

28:44>> Okay, so there's nothing that it's

28:46already determined.

28:49>> Um

28:50we can check with

28:55But again, a lot of what we do is

28:57pending

29:01>> So with the private placement another

29:03That is the quickest way

29:05get everything paid and settled.

29:11>> We also have other settlements. How will

29:14this affect

29:19>> Each settlement is a different case. So,

29:23you know, we have to

29:26basically cross that bridge as

29:27corporation is working with each

29:30litigant. And, you know, whatever

29:34terms come to

29:37whatever the terms come to

29:39we talk to myself

29:42about the settlement and we'll prepare

29:44it so we're basically taking it on a

29:46case-by-case

29:47basis.

29:48>> And we could

29:55So if

29:56because

29:59borrowing, borrowing, borrowing, what

30:01what could happen?

30:04>> What agencies

30:08>> I think I think

30:10Yes, our rating.

30:11>> Oh, yes, it would have Yes, it would be

30:13detrimental.

30:17Yes.

30:18>> I mean, they look at these cases and I

30:20think they also take into account

30:26is I mean, also you you have to

30:28understand a lot of these cases work for

30:31or a lot of us as well. So

30:37So again, I think you know, they look at

30:39these cases

30:43you know, what's happening, what what

30:45was the case about, you know, just

30:47different aspects of it. But

30:49does it come up in topic?

30:55>> Okay, and as long as it's being on a

30:57different

30:58level then

31:00>> Yeah, I mean that's that's kind of how I

31:02see it now, of course, you know, that's

31:07>> And and it's not looked at as

31:08irresponsible.

31:11>> Thank you,

31:12Mr. Chair.

31:18>> Thank you, Mr. Chair. So if I'm

31:20understanding

31:24the bonding now the way to go with this

31:31For the moment, yes.

31:36So we will bond for it eventually

31:39cover that

31:41until the interest rates are more

31:43favorable for us.

31:47Okay?

31:48And that can go into effect as soon as

31:54put out an RFP

31:56a couple of weeks, review the RFP for a

31:58couple of weeks. Um I think we're

32:00talking maybe if everything goes out

32:04November 23rd

32:07have a closing

32:09if everything with the approval,

32:11everything that that's just a

32:14preliminary timeline.

32:16If everything goes perfectly, we have

32:18the same

32:22Thank you, Mr. Chair.

32:24>> Thank you all

32:25questions colleagues.

32:32>> Could you explain a little bit how the

32:33bonds work

32:35because I do know

32:37here

32:38and

32:40>> the said bonds

32:42should be sold by the mayor with the

32:44approval

32:46of the bond

32:48committee.

32:49So can you explain a little bit how the

32:51bonds

32:53uh work and why would that be a way

32:56for to cover

32:58the bond sale?

33:00>> Yes. So anytime we do capital projects

33:04or

33:05litigation bonds, um we have to go out

33:08to the public market.

33:10Um so we have a whole team that works

33:13with the city from

33:16underwriters.

33:18Um

33:20they go out and

33:23they advertise in the public market on

33:26our behalf, whatever it is we're

33:28borrowing, whether it's litigation or

33:31whether it's capital projects um in a

33:34budget year.

33:36What will happen, they will get what you

33:39know, they'll basically get bids

33:42different entities

33:44uh

33:45you know, selling these bonds

33:48in the open market. The language that

33:50you're referring to is really

33:52the city signing those receipts what our

33:56financial advisors and our team kind of

33:58put out in the market. So once they do

34:01that,

34:02the city ordinance has a bond sale

34:05which reviews

34:06and you know, and or approve and

34:09approves what comes

34:12back from what was issued in the market,

34:14right? So that's the need of of um

34:18the the board, the majority leader, um

34:22the city officer,

34:24and then city staff as well. So we'll

34:26vote, that's where we get the interest

34:28rates and everything else from what came

34:30in, interest rates, insurance, things

34:32like that.

34:33And then if that's approved, um

34:37you know, we'll lock it get that money.

34:40But that language is because the mayor

34:42and

34:44I know I a lot of these documents along

34:46with the city treasure.

34:51Thank you.

34:52So the question colleagues on the sign

34:54up.

34:57>> I have a couple.

35:00Thank you for answering all the

35:02questions about the private placement

35:03that helps me understand it better.

35:07I am concerned about

35:09the fact that this and other settlements

35:11will have

35:14So I'm asking

35:17a couple of questions. One is about

35:19the administration's decision making for

35:21this

35:23and the other questions are

35:25So for this particular

35:27what other options did you

35:29explore? So for example

35:32using our fund balance

35:34or for example like special levy

35:37to ask taxpayers to pay for it.

35:40That way rather than

35:44want to ask you

35:45did you think of those options or did

35:46you think of other options for what we

35:48could do to pay for this pay for this

35:50settlement?

35:53>> About for we did not consider a special

35:56levy

35:58but there could be an option

36:01maybe we can do a special levy for any

36:03future litigation settlements that might

36:06be. I know

36:11much larger

36:23And then

36:24again

36:29there

36:30as well to build up our fund balance.

36:34I don't know how well that would be

36:36received by

36:40but you know again we're increasing our

36:42debt service, it's increasing the

36:43budget. It's increasing people's

36:46accidents.

36:48Anyway.

36:49>> So, I think I

36:51question on the fund balance was asked,

36:54you know,

36:55prior

36:56you know, we have a cash flow that goes

36:59up and down, up and down

37:00depending on the

37:03So,

37:15Because again, there's different things

37:17that we have to pay on

37:19debt service, medical benefits, payroll,

37:23things like that.

37:25Mentioned at the prior meeting, you

37:27know, we do have periods

37:29you know,

37:32things like that.

37:35The other thing with the special levy, I

37:37think it depends on the timing as well.

37:43timing correctly because we just can't

37:45say all of a sudden in January we're

37:48going to issue

37:53access, you know, and you know, because

37:57that creates other administrative and

37:59other issues

38:02doing something like that. So, if you

38:04are going to

38:07consider [clears throat]

38:15If that was an option,

38:17that would be the time to

38:19think about that as well. So, that takes

38:21me to the

38:23We had discussions in your preliminary

38:26talks about next year's budget about

38:28whether or not the city should

38:30into our litigation settlement fund and

38:33including

38:36adjustments in order to do that.

38:38>> So, next year's in the

38:4128 budget cycle, there are a lot of

38:44conversations I think

38:50you know we've had preliminary talks

38:53there are

38:55different topics

38:56and there's this

38:58cycle that's going to be a lot of

38:59different decisions that we have to make

39:01internally

39:03but like I said it's a capital year

39:09there is a couple of different things

39:11that are playing into next year's budget

39:13so we have started talking internally

39:16about

39:17preliminary

39:19items for next year's budget

39:23so

39:24this is definitely one of the things

39:27we're talking about because depending on

39:29timing of settlements how much they are

39:32depending on

39:35definitely affects debt service you know

39:37now and in the future

39:40it's definitely

39:42you know

39:44talks about these matters

39:52as well

39:53>> um

39:56I urge the administration well let me

39:58ask you this

39:59as a question

40:00have you thought about skipping a year

40:03in the capital budget cycle because

40:06we're already

40:08you know 15 million is a quarter of our

40:1060 million

40:12uh

40:13amount which is

40:17could decide well let's just put it off

40:19a year

40:22and deal with

40:23fact

40:24borrow for these other infrastructural

40:26needs because we simply have to pay for

40:28these settlements

40:31have our debt service scheduled crazy

40:34have you thought about that has that

40:36been

40:37uh I I

40:39don't think we can

40:40[clears throat]

40:41improvements

40:43a lot of it is the schools improvements

40:45to the schools

40:46or upkeep to the schools maintenance to

40:48the schools

40:50so So a big issue.

40:52So

40:53reading here

40:56>> I think this is

40:58we are taking a hard look at the capital

41:00cycle

41:02coming up.

41:03We actually started

41:09just sent out some notices today

41:14I think it's going to be conversations

41:16and I think

41:17you know switching to a two year cycle

41:19really helped us you know

41:25Um

41:26that really helped us out but I think

41:36you know that we couldn't wait a year or

41:38so on

41:43to improve those infrastructures.

41:46So I think it would really depend on the

41:48project

41:50as to whether like

41:52we really hold off on this project or is

41:54there

41:55things like that.

41:58So I mean it's it's conversation

42:01really just in the midst of starting

42:03that capital cycle.

42:06>> And it would depend on how critical the

42:09situation becomes

42:10also.

42:11You know if we're in a dire situation

42:14yeah we may

42:16they have to do that.

42:20>> Well

42:21thank you for

42:22answering my questions. I think it's

42:24good for us to start

42:25preparing for some of the very difficult

42:27parts of what we have in the coming year

42:31given the size of these settlements and

42:33the reasons that we have to pay them.

42:38>> Okay. For the questions and columns on

42:40this item.

42:42Council member

42:44>> Thank you Mr. Chair. Just sitting here

42:46thinking and listening to the

42:47conversation

42:49it is it can this be paid a period of

42:52time? or it's

42:57>> It's generally litigation is paid

43:02It's very rarely

43:06a settlement of this size span over five

43:09or six years.

43:10So

43:14>> How can you use some reserve in some

43:16form?

43:20>> The well one of the

43:23issues with the rating agencies was our

43:26low reserve.

43:28So

43:29that's

43:30>> I remember having that conversation but

43:31I feel like we're in dire straits at

43:33times and

43:38What do we give up

43:39the question? Not that we have to answer

43:41that I'm just

43:42thinking out loud. Um

43:45can can we borrow from the state?

43:49Is that such a thing borrowing from the

43:51state and

43:52>> The state doesn't have any type of

43:54program or anything

43:56like that that kind of I mean I think it

43:58goes

43:59into like

44:01what chair Marshall was mentioning about

44:03conversation with partners.

44:06At this moment there's nothing any type

44:09of mechanism

44:13to

44:14uh offset

44:18>> I'm just trying to think outside the box

44:20and at the option

44:23[laughter]

44:24I'm

44:25putting it out there um just you know

44:28some some thoughts because we do have a

44:30rainy day fund the state does too.

44:34If somehow

44:36we can do a mixture of things

44:39I don't know.

44:41>> Thank you all

44:42Any further questions on this item?

44:45Thank you Thank you time.

44:48[snorts]

44:50If there's a member of the public who

44:51wishes to testify on this item

44:54anyone from the wish to

44:56testify on this request?

45:00Anyone from the public testify on this

45:03item?

45:06Next item on the agenda

45:07[cough]

45:09is which is the year end transfer.

45:13And I assume Mr. this is your item.

45:15>> Yes.

45:16>> You have paper for us?

45:17>> I do.

45:18>> Okay.

45:19Let's get it

45:20on the stand.

45:22>> So

45:24I

45:24put the transfer. I believe everyone has

45:27that

45:28part of the package.

45:33The year end transfer is part of your

45:34package.

45:37It is I mean it's just a list

45:39just a list of

45:42Not really it's just

45:43it's the closeout report that shows

45:46everything.

45:48So I hold

45:49the folder [cough and clears throat]

45:52transfer.

45:56So again as we

45:59do this every year it's a cleanup.

46:02So every department that has

46:04we're basically taking that surplus and

46:06moving it to departments that had a

46:09negative balance for the year.

46:12So we beginning of the list is all

46:14departments that had a surplus and I I

46:16just have a

46:18to the lowest.

46:21And then see

46:23the deficit balances from the lowest to

46:25the highest deficit.

46:28And then

46:29for

46:31on the bottom of the page we did have

46:34excess revenue of $7.2 million.

46:37So that is also part of

46:39the surplus $7.2 million in

46:41excess revenue.

46:42That was a big We put that at the

46:45deficit Jersey budget was about $15

46:48million

46:49deficit Jersey budget but that $7.2

46:52million

46:53brought us down to

46:554 million.

46:57The other

46:58part of that

47:09>> So the other part of the transfer is

47:12from values

47:15So that was the actual deficit of

47:16revenue compared to expenses.

47:19So we were short

47:21revenue over expenses by 8.4

47:25That's the other part of the transfer

47:27that covers that.

47:31So that is the year-end transfer

47:34and then just the gain

47:37transfer form

47:39showing that

47:42and that's on page 24.

47:50Okay, and then the closeout

47:55So this is the one that was presented

47:57on October 1st.

48:01So again, same thing, you can see the

48:038.4 million dollars

48:06revenue

48:08We got the excess revenue

48:12Some of the

48:15What

48:16that was

48:18Here was

48:21revenue sharing from the state

48:24that was one of the largest items.

48:27Property tax was about 1.2 million

48:30dollars higher than

48:35And

48:37was

48:382.5 million dollars higher than

48:42And a lot of that was

48:46and some of the funding we were getting

48:49higher rates

48:52are bank accounts.

48:54We are looking at that

48:57for

48:59seven.

49:00It's not going be as high for

49:06But those are some of the areas where

49:10what caused that increase in the

49:16Some of the

49:17major areas where we had deficits were

49:19IT.

49:24Our utilities was

49:265 million that we were over budget.

49:30Liability insurance 0.1

49:34We have page that's page 11 that I'm on

49:37now.

49:39And our

49:43was 9.4.

49:45Then on the last page there you can see

49:4715.6.

49:48So comparing 718 million expenses

49:52compared to our budget of 702

49:57over 15 million deficit.

50:08So the other thing that I doesn't show

50:10on this these are

50:12numbers.

50:13So after this was prepared we did find

50:17some adjustments in our favor

50:21So we did have one adjustment it was a

50:31Hydrants

50:34There was another one that was

50:36not in our favor but much less.

50:38So right now our deficit is around 8

50:40million

50:41so that'll be reflected

50:43on our final

50:45But because our

50:49equals 8 million

50:57But we will have right now unaudited

51:00again

51:01still we're going to be

51:04So we're at least.

51:05And we're

51:08October first.

51:10>> So terms of the ordinance amendment

51:11before

51:13requesting it.

51:15>> I I think we can keep it the same

51:16because again it was as of that date.

51:19It's un audited and we all understand

51:22that it's not

51:23audited number.

51:25Audited won't be complete until

51:29March.

51:32Hopefully the end of March

51:36>> Okay.

51:38Anything else you'd like to

51:39get

51:40>> That's it for this.

51:42>> Okay.

51:43All right. Thank you director Gizzey.

51:47Questions from colleagues on this

51:49request for

51:51a transfer intended to

51:54make our books reflect the actual

51:57end of our year.

52:00>> Thank you Mr. Chair. Some of my report

52:03is cut off so some of my question might

52:05be answered by

52:08staff report but

52:10it's just kind of chopped off

52:12in my packet.

52:14I guess my my question primarily

52:17why

52:18why is the

52:20$5 million dollar deficit?

52:23>> That is a good question.

52:25Mostly it was

52:29Special education is

52:32very very costly

52:35expense for the board of ed.

52:37The other

52:38expense there

52:44but transportation is is

52:48their custodial overtime and their

52:51security time is another

52:53one of their largest ones. The other one

52:55is teachers. So those are the three main

53:00drivers for their nine

53:04You you what percentage of that deficit

53:07can be attributed to transportation?

53:10>> That was

53:13all together. They did have some

53:16they had a surplus as well.

53:18So it was around 10 million

53:22There were some offsets.

53:30I believe it was around 10 million

53:34for transportation.

53:37>> Majority of the deficit can be

53:40attributed to transportation. Is that

53:41right?

53:42And was it just special ed

53:43transportation or was it other types of

53:47>> It's all transportation, but the

53:50majority or the one of the large

53:52is special ed transportation.

54:00>> I do you know

54:06the Board of Ed

54:08who are not here at the moment.

54:11We had discussed

54:14at their last

54:16meetings with the Board of Ed and the

54:17finance committee. We had encouraged

54:19them to reexamine bussing. We knew it

54:21was a a large expenditure.

54:24And here we are with a deficit. Do you

54:26know if there had been any attempts

54:30to mitigate the cost of transportation?

54:33>> We had conversations

54:36with the Board of Ed about

54:38possible

54:39bus routes.

54:43Yeah, it's

54:46we have the contract now

54:49so everything is in place now. We're

54:52looking at

54:54changing that for

54:56hopefully as soon as next year

54:59to to get the

55:02but

55:03I

55:23>> So there is

55:24plan in

55:25>> of what that plan is?

55:26>> think that would be prudent.

55:30>> Thank you, Alderman Moore. Next in

55:32[clears throat] the queue is Alderman

55:32Furlo, then Alderman Ponzio. And before

55:35Alderman Furlo

55:36proceeds, let me just recognize our

55:38colleague Alderman Morrissey.

55:50>> Okay.

55:53Rings a happy voice.

55:55[clears throat] Um

55:57thank you.

55:58Thank you for your polite answer

56:00regarding transportation. We know that

56:02it's much more than special ed

56:04transportation.

56:05We know that it's because they've mis

56:11gasoline problem

56:14forecast

56:16used by our city

56:18and other things that go along but you

56:20know a gentleman

56:21and we appreciate that.

56:23My question

56:25is if you could

56:27just give a couple of examples of

56:29various organizations

56:31are

56:33>> So the various organizations

57:02>> Uh so those are

57:03those are some of the like the the C

57:05fund

57:07that funding

57:08is included in

57:10in that

57:11various accounts.

57:13So those are some of the funding that

57:14the auditors set aside that you can

57:17for projects.

57:20Boys and Girls Club

57:22set aside. So those are it's kind of a

57:29agency

57:32for special projects.

57:34Either

57:35city side mostly request

57:41for

57:42various accounts.

57:47>> Just not sure why it's $91,000 what what

57:50happened.

57:51>> I'm not exactly sure what happened there

57:53why it was over by $91,000 but I I can I

57:56can definitely get that for you.

57:58>> Thank you, Mr. Chair. If we can get that

58:00I think that would help us in next

58:01year's budgeting

58:03to figure out

58:05what's going on with that.

58:09Well, no

58:11that because I think the vacancy savings

58:15Well, this actually that was

58:18that was a that was a surplus so we were

58:22$91,000 from that account and moved it

58:24to cover the

58:25deficit.

58:25>> so that's

58:27[laughter]

58:28Thank you. That's all I have, Mr. Chair.

58:35>> Um

58:37When you take the money some from from

58:39these

58:41departments

58:42what happens

58:44that money is

58:45I mean do you deplete the department

58:48budget altogether? Is that how it works?

58:50I'm not sure. It's just I'm just asking.

58:52>> So there's balance at the end of the

58:53year they did not spend it we're we're

58:56taking

58:57>> Okay, you're just taking what's left

58:59over.

58:59>> done yes. So after

59:03Uh well, this was not

59:07>> So they had a balance

59:08total one.

59:10Their Their is gone.

59:11>> That is

59:12>> Yeah. Usually it's pretty close to when

59:15we're closing the fiscal year.

59:17Uh this year we closed a little bit

59:19Uh we were closing

59:22the third week in September. This year

59:24we closed early October.

59:28Uh we

59:29right at October first and

59:32no expenses or if there were balances at

59:35that point that's when

59:37>> Thank you Mr. Chair.

59:40Thank you

59:42I have a colleague who wants to get on

59:43the queue a second time.

59:46I want to get on the queue the first

59:47time. Alderman Gate.

59:48>> Thank you Mr. Chair.

59:49I just want to just just clarification

59:51for

59:53in reference to

59:55when they do three

59:57entities that made that number one

1:00:01and that was

1:00:02transportation

1:00:04security

1:00:06>> Yep.

1:00:08>> The teachers teachers salaries.

1:00:11>> Security.

1:00:13>> [cough]

1:00:14>> And overtime for security as well.

1:00:18So

1:00:19they do have they do have overtime

1:00:22more overtime

1:00:24rules in place now what more than that.

1:00:38>> But um

1:00:40I remember that now

1:00:42around transportation.

1:00:44I know that

1:00:46through the chair you will handle that

1:00:48but I think that's something that we

1:00:49will strongly strongly

1:00:52um drop to wrap

1:00:56Um because

1:01:00No.

1:01:02He has to come

1:01:04If that means

1:01:06Thank you.

1:01:07Excuse [clears throat] me Alderman Ring.

1:01:09Next on the queue is Alderman Festa.

1:01:13>> Uh thank you Mr. Chair.

1:01:15Just

1:01:15um

1:01:18kind of

1:01:19wrapped up.

1:01:20Our deficit

1:01:22was

1:01:23and now the final deficit

1:01:29That's with [laughter] the transfers.

1:01:31>> No.

1:01:32>> It's not.

1:01:33Okay.

1:01:35Once we

1:01:37do these transfers, is it enough? Cuz

1:01:40I'm not sure I'm following what the

1:01:41total of the transfers is.

1:01:44>> So the

1:01:45total of the transfers

1:01:47is not enough to cover

1:01:49>> And that. Okay.

1:01:50>> So we would be short $15 million.

1:01:52>> Okay. So we're still

1:01:54it's our deficit

1:01:55isn't the million.

1:01:57>> Well, if you look at the budget

1:01:59compared to the budget is $15 million.

1:02:02We had excess revenue

1:02:04>> Right.

1:02:05>> seven. So that brings it down to

1:02:07and then our fund balance is covering

1:02:09the rest.

1:02:10>> Okay.

1:02:11And that's where I was

1:02:14If we still didn't have enough, would it

1:02:16just get carried over?

1:02:18>> Well, that's what fund balance is

1:02:20covering. So that's why

1:02:21we reduced our fund balance

1:02:23$6 million

1:02:24>> Okay.

1:02:25>> down to so it was 55.5 and it's down to

1:02:2947

1:02:30now.

1:02:31>> All right. Thank you. That's the

1:02:33clarification.

1:02:36I wonder about that. Um

1:02:39Okay. I mean

1:02:41I guess we'll find out March 1st how

1:02:43this will all affect our

1:02:45next budgeting. But um

1:02:48I guess lots to think about particularly

1:02:49with the Board of Ed. So thank you

1:02:51Mr. Chair.

1:02:57>> Thank you

1:02:58Mr. Chair.

1:03:01I'm a little concerned

1:03:04why these departments

1:03:07have the money to be transferred.

1:03:10So you may not be able to answer the

1:03:12question today.

1:03:14Um but through the Chair,

1:03:17the

1:03:17is

1:03:20community resilience,

1:03:23elderly services,

1:03:25recreational and youth.

1:03:29And fear rent.

1:03:32Why do these departments have

1:03:36this at

1:03:39that they have not used?

1:03:42We have one department here, the

1:03:44library,

1:03:45376,633.

1:03:51And all of these departments have come

1:03:53to this committee

1:03:58to run and operate

1:04:00recreational and youth.

1:04:04So maybe not today

1:04:14that they were

1:04:16Thank you, Mr. Chair.

1:04:16>> you might actually have an answer now.

1:04:18>> So a lot of it is vacancies.

1:04:20>> Yes, vacancies.

1:04:22>> Yes.

1:04:23And uh I think it was a couple months

1:04:25ago that we could go over all the

1:04:27vacancies.

1:04:29And a lot of it is vacancies.

1:04:31And we did there was a period where

1:04:34some service

1:04:36had delayed for for months, delayed for

1:04:39months, even hiring in my office delayed

1:04:42for months

1:04:44because we could not certify

1:04:48So testing was done and people were

1:04:50waiting.

1:04:51And that people were waiting for months

1:04:53on that, two, three months.

1:04:55Sometimes people they got other jobs, so

1:04:58they were really qualified

1:05:00But they couldn't wait and they and they

1:05:03got other

1:05:05So I'm sure a lot of it

1:05:09is vacancies.

1:05:11And then for [clears throat]

1:05:13uh none of that was

1:05:15for

1:05:18the ARPA

1:05:26>> Anyone else who

1:05:28asked a question to ask a question?

1:05:31Say none.

1:05:37[clears throat] Thank you, this will be

1:05:38quick.

1:05:39There was a commission

1:05:41that also

1:05:44Do you scoop those also?

1:05:49Perfect great fun, a little hot.

1:05:51>> Some of them are hot. Anything that is

1:05:53not spent

1:05:55it is is spent.

1:05:58So we

1:06:00Which ones are you referring to? Which

1:06:02what funding

1:06:06CRB?

1:06:08For one?

1:06:10>> Um that is

1:06:12believe this

1:06:13CRB is in the

1:06:16>> So that is not

1:06:19>> So anything that's general fund

1:06:21be swept at the end of the

1:06:23at the end of the year.

1:06:29That would build our fund balance.

1:06:32So it means it's

1:06:34starting at zero.

1:06:36Nothing is getting carried over

1:06:38to

1:06:39the year.

1:06:43>> Very quickly we

1:06:44may in our budget to the CRB.

1:06:49How do you separate the special

1:06:52from the money that we

1:06:53in our budget?

1:06:54>> Yeah, if we did have it, it could be in

1:06:56a 404 accounting, I don't remember off

1:06:57the top of my head if if we actually

1:06:59have that CRB funding in

1:07:02as

1:07:03accounts, but I can double check.

1:07:05>> Thank you Mr. Chair, that might be good

1:07:06to know.

1:07:07That's all I have, thank you.

1:07:09>> Thank you all.

1:07:14Thank you Alderman Moore. Any further

1:07:16questions on this item?

1:07:18Further questions on the year-end

1:07:21transfer request from the

1:07:24Seeing none

1:07:25thank you very much, sir. Don't go just

1:07:27yet.

1:07:29>> Anyone from the public wishing to

1:07:30testify

1:07:31on this year-end transfer?

1:07:33Anyone from the public

1:07:38For the third time, anyone from the

1:07:39public wishing to

1:07:41testify on

1:07:42Seeing none, let's move on to the

1:07:46>> So the July report.

1:07:58Thank you.

1:08:05This is August.

1:08:32[laughter]

1:08:35Let's just get a few seconds to make

1:08:36sure

1:08:37each committee member has all the

1:08:39papers.

1:08:40And just be sure to tell us which

1:08:43sets of paper you're pointing your

1:08:45attention to.

1:08:46>> Okay. All right, so we can we can go

1:08:48right to the September

1:08:50>> Okay.

1:08:58>> For September, right now looking at a

1:09:01little bit of a

1:09:06right now.

1:09:08One of the things that we're

1:09:10looking at is the traffic cameras just

1:09:12came on.

1:09:15That we're hoping will be a

1:09:19large source of revenue. I believe that

1:09:21was

1:09:27>> Did you get a ticket?

1:09:29>> [laughter]

1:09:32>> There's a chair.

1:09:36Not yet. [laughter]

1:09:38Did the chair please

1:09:40chair public seat

1:09:41>> All right.

1:09:46>> Uh so we're we're

1:09:55And so we are anticipating right now we

1:09:58we are looking at about $1 million

1:10:00deficit

1:10:05around $900,000 deficit.

1:10:07And the main thing right now

1:10:12well

1:10:14Is there a page number associated with

1:10:16this? This is on page four.

1:10:19page four for our revenue.

1:10:20So lighthouse

1:10:23collecting more

1:10:25anticipating

1:10:27in

1:10:28our

1:10:29land inspection fee

1:10:31our tobacco

1:10:34license fees

1:10:36what we anticipate.

1:10:42And then the on page five

1:10:46is peace officer duty

1:10:49where that is trending higher than we

1:10:51anticipated.

1:10:53So that's where the $130,000 is coming

1:10:55in.

1:10:58Then on the

1:10:59last page page six

1:11:06I think we can hide some of these

1:11:07columns next month so for larger.

1:11:11But

1:11:12maybe

1:11:15our debt services

1:11:19then we anticipated there was a

1:11:23[laughter]

1:11:24that what there was a calculation in the

1:11:27200 and 60,000 dollars.

1:11:31And the other

1:11:32part

1:11:33that

1:11:34are

1:11:35liability insurance

1:11:38We've had two claims.

1:11:40Our liability insurance is

1:11:44Some of our POs came in earlier

1:11:46than what we anticipated.

1:11:48So

1:11:49that's

1:11:50just the nature of it.

1:11:57We did budget more

1:12:00than last year here, but unfortunately

1:12:06the months are coming in higher than

1:12:08[clears throat]

1:12:15The other part of this is I know there

1:12:17are vacancies

1:12:19Like it's still very early in the year.

1:12:21So

1:12:22some of that

1:12:26I'm sure some of that will offset

1:12:28this

1:12:31Don't have anything for the board about

1:12:33the typically

1:12:35file any financial reports

1:12:38uh at least until their first quarter

1:12:42Uh

1:12:43I I do have their

1:12:46Well they did publish their current

1:12:49three month expenditures

1:12:51in so it will be in the monthly report

1:12:53that's online.

1:12:56So I don't have a I don't have a

1:12:57projected

1:12:59projection for them.

1:13:00>> So purpose of the monthly report I don't

1:13:02know

1:13:04particular information from an agency

1:13:06to what

1:13:07expenditure would be.

1:13:08>> Yes.

1:13:09Yes.

1:13:10>> You don't put a single

1:13:12>> No.

1:13:15Okay, it's still early in the year.

1:13:17>> Yes.

1:13:19Anything else you want to comment on

1:13:21>> That's it.

1:13:23>> Thank you so much.

1:13:24Questions from colleagues on the monthly

1:13:27report. We're focusing on September

1:13:29because that's

1:13:31the only time that's when we have

1:13:33most complete information of any of

1:13:35these three reports.

1:13:37>> [clears throat]

1:13:37>> One other thing that I want to add

1:13:40go back to your questions earlier

1:13:43about the interest.

1:13:45If we do private placement with the

1:13:48settlements there will be some interest

1:13:50that we will have to pay and we did not

1:13:52budget for that. So that will be once

1:13:56we're working with our financial advisor

1:13:58uh we sent an email

1:14:00more sent emails back and forth with him

1:14:04to see what that model and again based

1:14:07on what the amounts are. So we'll have

1:14:09to cover a few months of interest

1:14:12or until we we actually do the bond

1:14:14sale.

1:14:16>> Thank you for that additional

1:14:17information. Is there anything else

1:14:18before we head it over to the

1:14:24questions from colleagues on these

1:14:27see monthly financial reports on

1:14:29furlough is on the queue.

1:14:32>> Thank you Mr. Chair. Um

1:14:35there's been a lot of talk and motion

1:14:37around this

1:14:38topic I don't see it maybe it's done

1:14:41just once a year. But where is the

1:14:44credential informant line

1:14:46and how is that funded?

1:14:48>> So that is it's part of the

1:14:52police department budget.

1:14:54Um believe

1:14:56about 75,000 that's put into that but it

1:14:58is part of police department budget.

1:15:02>> Right.

1:15:03I saw that article and I

1:15:05been on the finance committee for a

1:15:06while and never heard that mentioned

1:15:08ever.

1:15:10Um I thought it would be a separate line

1:15:12or appropriations session on that since

1:15:15it's been highlighted so but doesn't

1:15:17this state also give money

1:15:19to that money that's been

1:15:22um confiscated confiscated does that

1:15:25also go to city?

1:15:26>> So there's a we have a federal

1:15:28forfeiture account and we have a state

1:15:29forfeiture account. So those those are

1:15:32special funds.

1:15:33So those are accounted for differently.

1:15:35So when a special fund accounts, that

1:15:37that's not

1:15:39Those are special funds.

1:15:41So it's the same thing that we were

1:15:43saying earlier.

1:15:44Uh anything that's in general fund

1:15:45that's not spent gets swept at the end

1:15:48of the year.

1:15:49Hopefully we have a surplus

1:15:52Any special fund that counts because

1:15:54it's set aside for a specific

1:15:57unless it's there for years

1:16:00[clears throat]

1:16:03There are certain

1:16:04accounting

1:16:05guidelines

1:16:11But typically

1:16:13special funds or grant funds, those stay

1:16:16in

1:16:18So those

1:16:21are separate accounts.

1:16:23>> Yes. I think I'm not really asking about

1:16:25money being taken out

1:16:27by the city.

1:16:28What for is money that's being received.

1:16:31>> Yes.

1:16:32Uh I I can get you those numbers. I can

1:16:36show you how much was actually received

1:16:41I would like to know that. Um

1:16:44And so I think I'm just for this happens

1:16:47throughout the

1:16:50stated that there's a $75,000

1:16:54amount that is

1:16:55somehow our budget that goes in

1:17:02$75,000 that is allocated

1:17:07And then I guess

1:17:09I don't guess. I am wondering

1:17:12through state and federal agencies that

1:17:14goes into

1:17:17listed as special funds or is that also

1:17:29>> Then

1:17:30how does it get to that

1:17:31through state

1:17:33>> For the

1:17:34for the

1:17:35So that would be

1:17:40>> car seized in a drug deal

1:17:42or something like that then sold at

1:17:45auction and we would get a portion of

1:17:46that.

1:17:47If it was seized by the state and they

1:17:50sell it at an auction then we get a

1:17:51portion.

1:17:53If it's seized by the

1:17:54feds

1:17:55feds same thing they would sell it and

1:17:57we get a portion.

1:17:59>> It has nothing to do with

1:18:00the right terms you're using the right

1:18:02terms and I'm and I'm trying to guess at

1:18:04it.

1:18:05So I guess what what I'm asking is when

1:18:06that happens

1:18:08and the money goes to the state or to

1:18:10the cities

1:18:11how often does that happen?

1:18:14>> Uh it is

1:18:17Yeah it's not just one time but that

1:18:19funding does not go into

1:18:21the fund that is separate.

1:18:23That's separate from from that funding.

1:18:26>> So then I wonder where does that money

1:18:27go then?

1:18:29>> Well they they they can use it for other

1:18:31things.

1:18:34Other means that they have.

1:18:35>> Holy cow we want to know what's going

1:18:36on.

1:18:38>> It's not a lot. It's not a lot. It's not

1:18:40a lot.

1:18:41>> But as the fiscal the city I think we

1:18:43need to know

1:18:44for looping and looping and putting

1:18:46money here and there and trying to

1:18:49we need to

1:18:50know where all the money is because this

1:18:52is how these things happen and money

1:18:54comes in but

1:18:55who knew they had

1:18:57$20

1:18:59to play with in that

1:19:02department? any information that you can

1:19:03share with us reasonably will be

1:19:07Thank you.

1:19:08>> Thank you for letting

1:19:11I think the way I'm

1:19:14This is probably a broader phenomenon

1:19:16than just

1:19:19And what's got

1:19:22that could be brought in

1:19:23to the police department through

1:19:24forfeitures or other

1:19:26How is that accounted for? Where does

1:19:28that get reported?

1:19:30Um

1:19:31how often does it happen? Let's look at

1:19:33the last two years for

1:19:34Okay. Um

1:19:38who approves

1:19:40the receipt

1:19:41potential

1:19:43that allocation and spending of those

1:19:44monies.

1:19:48>> Yeah.

1:19:49>> Yeah, spending would go through the

1:19:51normal

1:19:52police department process, their

1:19:53approval process.

1:19:57That would be the same process.

1:19:59>> But I think if you take like a couple of

1:20:01years of experiments

1:20:06that search

1:20:07better understand what we're talking

1:20:09about here.

1:20:12>> So

1:20:13the reason I'm asking

1:20:14more eloquently

1:20:18having just had lunch and no dinner.

1:20:21But other every other department in this

1:20:23city

1:20:24in order for them to receive money

1:20:29except for that.

1:20:31>> Well, I'm sure at some point

1:20:34that was approved by the board, had to

1:20:36be at some point approved by the board.

1:20:40>> Okay, just under a

1:20:42million dollars.

1:20:43>> Yeah, it would be every year

1:20:51approving federal forfeiture or that

1:20:54forfeiture.

1:20:56>> So

1:20:57what we're asking for is just

1:20:59verification

1:21:00on where in the general fund budget,

1:21:03what line that

1:21:04and perhaps it happens

1:21:08but

1:21:09you can tell that this seems like news

1:21:12to us.

1:21:13And so we hope we recognize it.

1:21:18Example, last time we did that, when was

1:21:20that? How did What was the mechanism for

1:21:22approving that?

1:21:23And I think we

1:21:26have more reminders in terms of

1:21:29But if you can do a report on

1:21:32like the last couple of years when came

1:21:34in

1:21:35then give us a summary of the

1:21:38the approval process for the spending of

1:21:40that money

1:21:42how and when the board was involved in

1:21:43that.

1:21:45It's not getting We're not

1:21:47It's not ringing a bell

1:21:49with us.

1:21:50We'd like to know that.

1:21:53[laughter]

1:21:54Anything else on a high level?

1:22:01You said it. That's it. I mean

1:22:03wasn't finished but

1:22:04I'm done now. Thank you.

1:22:07>> follow up questions you can ask them

1:22:09Okay.

1:22:11Alderperson

1:22:13>> Thank you, Mr. Chair. And I guess while

1:22:14we're on the topic, that includes cash

1:22:17seizures as well.

1:22:19I mean cash and usually drugs or cars or

1:22:22whatever and

1:22:24does the full amount of cash come to us

1:22:26would be the other question.

1:22:33So I

1:22:36the challenges we had in the past year

1:22:38that

1:22:39that money also went into this fund.

1:22:49But anyway, let's look into it. I don't

1:22:51know. I'm asking.

1:22:54It's a rumor.

1:22:56I'm not asking for my colleagues to

1:22:58agree or disagree. It's a question.

1:23:00Where does that money go to? Cuz you

1:23:02mentioned that there's other stuff that

1:23:05gets seized and then

1:23:07goes to auction.

1:23:09What happens to the cash part?

1:23:12>> Yeah, I want to find out as well for my

1:23:14own knowledge.

1:23:16I don't think that happens

1:23:18pretty sure that doesn't happen but I

1:23:20will

1:23:21find out for my own knowledge.

1:23:22>> Um and then, you know, we mentioned that

1:23:24we did not budget for the interest

1:23:27development.

1:23:28Are we foreseeing any other challenges

1:23:31within the fiscal year that might

1:23:34prevent us from having

1:23:36a

1:23:38balanced budget?

1:23:39We don't know what where the board of

1:23:41that is at the current time so that kind

1:23:43of changes.

1:23:49Yes, on

1:23:51what will happen there, but

1:23:53do you foresee it?

1:23:56>> Well, we're always looking at medical.

1:23:57We did increase the medical budget quite

1:23:59a bit from 26 to 27. I think it was

1:24:03about

1:24:05I think

1:24:0611 million dollar increase from last

1:24:08year to this year.

1:24:15Higher schools, of course.

1:24:18That could be that could be challenging

1:24:20again. It's still early in the year.

1:24:22Medical is hard because sometimes it'll

1:24:25it'll all come in at once. It's not it's

1:24:27not steady.

1:24:29So medical could be a challenge.

1:24:33Depending

1:24:34on if we settle the

1:24:36fire department contract, that could be

1:24:38a challenge also. Some of the other

1:24:41contracts that help and increase those.

1:24:45We have we did increase our contract

1:24:48reserve

1:24:49about 6.7

1:24:54Depending on if there's retro,

1:24:56that that could be

1:24:58that could be a challenge there.

1:25:03>> Okay. So we even the contract reserve,

1:25:06we try to estimate based on what

1:25:08contracts will be

1:25:10and deliberated and then

1:25:12we put funding in there. So this may not

1:25:14be enough

1:25:15even to cover that because of

1:25:18um

1:25:20>> It's a potential challenge.

1:25:24>> Okay.

1:25:25So I mean, are we staying on top of

1:25:29>> Yes.

1:25:29>> spending as

1:25:31on a daily basis?

1:25:32>> Yes, we are.

1:25:36>> Thank you. Thank you, Mr. Chair.

1:25:38>> Thank you all for the further questions

1:25:40and colleagues.

1:25:42>> Thank you. Um

1:25:45>> 81

1:25:54The

1:25:55the vacancy savings is that from

1:25:58a July to the end of September?

1:26:11>> So the second to the last

1:26:21>> Is that July to

1:26:23end of September?

1:26:30>> vacancy savings

1:26:342,819,000

1:26:35so that would be that's projected for

1:26:38the year so that's that's a negative

1:26:40because it would be reducing

1:26:43our expenses.

1:26:46>> What is that what has been

1:26:49what has not been

1:26:51because of vacancies

1:26:53in the city

1:26:55from July, August and September?

1:26:58>> No, that's what we're anticipating for

1:26:59the whole year. So we're anticipating

1:27:01that

1:27:02approximately 2.8 vacancies for the

1:27:03whole year.

1:27:04>> Okay, that's what you're anticipating.

1:27:06Okay, and what non-public transportation

1:27:11Thank you.

1:27:12Thank you Mr.

1:27:14>> Non-public transportation

1:27:16that is we have some

1:27:20other than

1:27:22so that is for summer camps

1:27:25for elderly transportation

1:27:28those are

1:27:34>> Any other questions?

1:27:37Next.

1:27:46>> Uh thank you Mr. Chair. Sorry, I just

1:27:49question regarding

1:27:51the sale of marijuana. We usually get a

1:27:53tax comes to the city.

1:27:55Do you have a number of what

1:28:00elected

1:28:02use because it had

1:28:08Do we have that information?

1:28:09>> Uh it's over a million dollars. I know

1:28:11that. And we haven't used any of it

1:28:13either. Most of it

1:28:18We haven't used We haven't used any of

1:28:21that yet.

1:28:30And it's around a million

1:28:31>> Yes, over a million dollars.

1:28:34>> Thank you, Mr.

1:28:35>> Further further questions from

1:28:36colleagues on this

1:28:39Questions and comment?

1:28:41Saying none, thank you for your busy

1:28:47requests for

1:28:51>> Is there a member of the public who

1:28:52wishes to testify on this item?

1:28:57Anyone from the public wishing to

1:28:58testify

1:29:01this monthly financial

1:29:04And for a third time, anyone

1:29:06testify

1:29:07on these this or these items?

1:29:13>> Chair, I make a motion to close the

1:29:14public portion of this meeting.

1:29:16>> Second.

1:29:17>> A motion has been made to close the

1:29:18public portion. Seconded. Any discussion

1:29:20of that motion?

1:29:29Mr. Chair, I move item number one

1:29:32>> Second.

1:29:35>> Seconded. Discussion of the item.

1:29:38>> Uh Mr. Chair, I agree with the issuance

1:29:41of general obligation bonds to fund the

1:29:45for the city settlement.

1:29:47Thank you, Chair.

1:29:50>> Further discussion from colleagues

1:29:52of this item. Further discussion from

1:29:54colleagues.

1:29:58>> [clears throat]

1:30:00>> Something we have to do.

1:30:02I think we should

1:30:04do it.

1:30:06You know, know we have to be you know

1:30:09wise and responsible

1:30:16and I'm in favor of it.

1:30:19Thank you. Thank you, Mr. Chair.

1:30:20>> Thank you all for the discussion on the

1:30:22second.

1:30:24Alder Walkenmeyer.

1:30:25>> Thank you, Mr. Chair. Um

1:30:30Thank you, Mr. Chair. I'm in favor of

1:30:33item. I think it's very

1:30:36the city is coming with three

1:30:38options.

1:30:40Um

1:30:41and and that they're going to evaluate

1:30:42when they get closer to time what is the

1:30:46what is the better option that

1:30:49because we have to pay

1:30:51we have more coming this than the last

1:30:54one. I think the city

1:30:56should start looking at what other

1:30:57options that they have outside of the

1:31:01normal bonding process. Thank you.

1:31:05>> Thank you, Alder Walkenmeyer. Further

1:31:07discussion from colleagues on this item.

1:31:11Say

1:31:12all in favor please say aye.

1:31:14>> Aye.

1:31:15>> Opposed say nay.

1:31:17The ayes have it. It will move forward

1:31:18favorably.

1:31:21>> Mr. Chair, I move item number two

1:31:23favorably.

1:31:24>> Second.

1:31:25>> Item two is

1:31:27favorably the second

1:31:29discussion on the budget.

1:31:31>> Mr. Chair,

1:31:33I agree with the transfer of funds to

1:31:34eliminate negative

1:31:37This is the year ending June 2026. Thank

1:31:40you, Mr. Chair.

1:31:41>> Thank you, Alder Hunziker. Further

1:31:42discussion of this item.

1:31:44Alder Moore.

1:31:46>> Um I I support this item. I think we

1:31:49need to cover our expenses. However, I

1:31:52you know

1:31:53I'd like to see more and I we've asked

1:31:55for more from the chair

1:31:57of that about transportation and what

1:32:00what the plan is to

1:32:02a lot of money.

1:32:05Thank

1:32:06you more.

1:32:10Any further discussion?

1:32:12Saying none, all in favor please say

1:32:14aye.

1:32:15>> Aye.

1:32:16>> All opposed say nay.

1:32:18The ayes have it it will move forward

1:32:20favorably.

1:32:21Alderman Punzal.

1:32:23>> Mr. Chair, I move uh

1:32:25items three, four, and five read and

1:32:28file item excuse me read and file item

1:32:31three, four, and five.

1:32:32>> Second Mr. Chair.

1:32:33>> Second.

1:32:34>> These items have been moved

1:32:36uh recommended read and file and

1:32:38seconded. Discussion with that motion.

1:32:41>> [clears throat]

1:32:43>> Uh Mr. Chair, I agree with the uh

1:32:45uh information given [clears throat] to

1:32:46us

1:32:47budget director and

1:32:50items three, four, and five. Thank you

1:32:51Mr. Chair.

1:32:52>> Thank you Alderman Punzal. Further

1:32:53discussion of these

1:32:56uh

1:32:57monthly financial reports presented here

1:32:59tonight. Further discussion.

1:33:03I'll just note for the record that there

1:33:04were

1:33:05information requests

1:33:08in regards to the and the previous items

1:33:10and none were

1:33:12responses from RCS staff. Any further

1:33:15discussion of these items? Saying none,

1:33:17all in favor of the motion please say

1:33:20aye.

1:33:20>> Aye.

1:33:21>> All opposed say nay.

1:33:23The ayes have it and we will move

1:33:25forward as recommended read and file.

1:33:29Alderman Punzal.

1:33:30>> Mr. Chair, I make a motion to adjourn

1:33:32this meeting.

1:33:33>> Second.

1:33:34>> Motion to adjourn made and seconded. Any

1:33:36discussion of that motion?

1:33:38Saying none, all in favor please say

1:33:39aye.

1:33:40>> Aye.

1:33:41>> All [clears throat] opposed say nay. The

1:33:43ayes have it. We are adjourned.