2026-10-14 - Budget Committee
Summary
Based on uploaded (human-made) captions; minor errors are possible. Staff names are garbled in the captions, so staff are identified by role.
Time on topic (from transcript timestamps; approximate, includes side talk):
| Topic | Minutes | Share |
|---|---|---|
| Half-Cent Sales Tax Budget 2027 | 12 | 12% |
| 2027 Debt Service Budget | 22 | 21% |
| 2027 Capital Improvement Budget | 17 | 16% |
| Electric Car Share Program Sunset | 14 | 13% |
| Office of Financial Services 2027 Budget | 13 | 13% |
| 2027 Climate Action Budget | 10 | 10% |
| General Government Accounts 2027 Budget | 10 | 10% |
| Opioid Settlement Funds | 7 | 6% |
- Wednesday, October 14, 2026.
- Chair Johnson presided; the Office of Financial Services presented the mayor's proposed 2027 budget in sections.
- The recording runs about 1 hour 52 minutes; the first six minutes are music only and are not counted.
- No votes were taken; the meeting was presentations and questions, and it adjourned at the end of the recording (1:51:56).
Office of Financial Services 2027 Budget
6:02-15:07, 24:50-28:54
- The department's director presented the office's general fund and special fund changes for 2027.
- General fund reductions meet the mayor's 4% across-the-board target; the captions say they reflect actual past spending and should not change operations. An accountant position for payroll and benefits administration is added.
- The $155,000 events and festivals funding moves to the Police Department.
- Special funds: two new Treasury positions, a proposed 0.5% levy for deferred building maintenance with two new staff, and about $300,000 left in the electronic payments project proposed for reuse by Public Works.
- Highlights: $8.5 million in congressionally directed spending won through the central grants office, a new solid waste fleet, and the AAA stable-outlook bond rating reaffirmed.
- Staffing: net 4.75 added positions, mostly in central services; several vacancies, including three hard-to-fill fleet garage jobs.
2027 Climate Action Budget
15:07-19:49, 22:13-24:50, 28:54-31:47
- The city's climate action coordinator presented an initial climate commitment of $500,000 for 2027, funded from the new Xcel Energy franchise agreement (the captions say about $29 million, which looks garbled; the later accounts discussion cites roughly $3 million in franchise fee revenue for 2027).
- Pieces: a climate director position (the city has used embedded department staff since the prior administration's program manager left), a climate response fund for grant matches and decarbonization add-ons, and subscriptions to three climate tracking and network services.
- Vice Chair Yang backed a dedicated climate director and the response fund and asked how it is tracked; the fund is a separate line within the existing special fund.
- Chair Johnson asked whether anyone had cut the climate director position; staff said they knew of no such cut.
Electric Car Share Program Sunset
19:49-22:13, 31:47-42:54
- The electric car share operator announced it would wind down; the city was moving its city-owned cars to secure lots before the sunset at noon the next day.
- Councilmembers asked for the cost of keeping a program alive. Councilmember Coleman and Council President Noecker pressed on the $700,000 the city put in ($300,000 from Minneapolis) and wanted it not to go to the departing operator.
- Staff said the insurance cost more than doubled, federal and philanthropic funding shifted, and the Minneapolis money already went to insurance paid through this month. The operator's board and staff were advised legally and financially, and there was little warning.
- Roughly 30 to 40 charging stations remain city assets, with some public charging that can continue.
- Chair Johnson asked for a breakdown of the roughly $590,000 proposed in 2027 and of what Public Works and Police also allocate, to be provided as follow-up.
2027 Debt Service Budget
42:56-1:05:03
- The city treasurer explained general obligation versus revenue bonds. Total debt outstanding is about $686.8 million ($258.7 million general obligation, $428.1 million revenue bonds), pushed up by the Lake McCarrons water treatment plant project.
- The city keeps a AAA rating from S&P and Fitch; its revenue bonds were downgraded last year from AAA to AA+ after revenue changes (Met Council rates, Westrock closure).
- The debt service levy rises about $3.7 million for 2027: the usual $1.5 million step plus about $2.2 million for a roughly $9.5 million judgment bond (a settlement) repaid over six years.
- Council President Noecker asked whether the increase could be spread out; staff said the model would otherwise go negative within ten years and the bonds are already issued.
- Each added $1 million of ongoing capital improvement bonding would take about $1.3 million more in levy by year ten. A sewer bond sale that morning priced at about 4.57%, per the captions.
Half-Cent Sales Tax Budget 2027
1:05:03-1:17:20
- The half-cent sales tax (in place since 1994, authority expires 2042) must put at least 60% to neighborhood and cultural STAR programs and up to 40% to RiverCentre and economic development.
- The 2027 proposal raises the budget from $24 million to about $24.25 million (+$250,000); 2026 collections are running about $600,000 above budget.
- A pledged $40 million 2027 revenue bond for the Roy Wilkins project (the debt service figure is garbled in the captions) is budgeted as a conservative match for state money.
- Chair Johnson questioned counting $3.75 million of arena complex costs inside the 60% neighborhood STAR share; staff said it fits the statute.
- Staff described a roughly $600 million arena framework that would need the tax extended from 2042 to about 2061, a request for the next legislative session.
2027 Capital Improvement Budget
1:18:00-1:34:36
- The capital improvement budget analyst gave an abbreviated review of the two-year process; capital improvement bonds are about 7.5% of the proposed capital budget.
- The committee moved $12.5 million from the Hayden Heights library project to Riverview after outside funding covered Hayden Heights.
- Annual programs are being consolidated into lump sums (for example railroad crossing improvements); $6.3 million per year is available for 2028 and 2029.
- Community proposal process: simplified application, applicants from every ward, $500,000 a year available, and many proposals ineligible under bond rules.
- Council President Noecker praised use of the audit committee's recommendations, questioned whether the community proposal process is worth its workload, and asked about lumping more programs. Councilmembers asked for budget-to-actual reports on past program spending.
General Government Accounts 2027 Budget
1:34:49-1:44:15, 1:50:56-1:51:56
- The office walked through accounts not tied to one department: franchise fee revenue and the transfer for climate and deferred maintenance, a charter commission placeholder, district council funding moving to the Police Department's budget, workers' compensation and risk accounts, technology charges, retiree insurance, public safety fleet support (+$100,000 a year), downtown improvement district assessments, and the end of American Rescue Plan funding at the end of 2026.
- Councilmember Bowie asked about the Work Now program funding missing from 2027; staff said it was one-time money in the 2026 budget and will report budget to actuals.
Opioid Settlement Funds
1:44:15-1:50:56
- Chair Johnson asked for an update on the $1 million opioid settlement allocation in the budget for several years.
- A mayor's office representative said the plan focuses on the Office of Neighborhood Safety's work and on coordinating with Ramsey County, which agreed to fund a bridge clinic.
- Council President Noecker and Councilmember Bowie asked for an itemized 2027 proposal and one coordinated city-county strategy, and for more outreach to district councils and community partners.
Sources
Video
Transcript
These are uploaded (human-made) English captions; minor errors are possible.
Transcript
05:50>> call Vice Chair
05:52Councilmember bleak. Cuncil
05:54member comments. Councilmember
06:00can't hear Councilmember Pure
06:01Council. President maker here
06:02here. Thank you. We have. For
06:08President 3 absent one being
06:10excused. The council.
06:13>> Vice chair yank.
06:19>> Thank We expect the other
06:20to have show up shortly as we
06:21are transitioning back here
06:24from erlier council meeting
06:25that was off site. So we will
06:28get started jst because a lot
06:29of different things to get
06:30through today with the Office
06:31of Financial Services they
06:32have a pretty robust time
06:33clock calendar to keep us all
06:38>> And alignment.
06:39>> First and will do the just
06:40overall departmental Office of
06:41Financial Services, General
06:42Budget.
06:42>> So welcome Director Heidi.
06:46>> Charges members of the
06:47bench can be job I'm the
06:48director of the Office of
06:50Financial Services to begin
06:52with the agenda today. Johns,
06:53you'll to it. There is a lot.
06:56>> And we'll have multiples
06:57Staff come up for component
06:59parts that being this boy or
07:00for the climate action plan,
07:03implementation, Mr. Guns for
07:04that debt and start proposals
07:07and then missed but Covid's
07:09for the cip budget proposal
07:10for 2027. And then wrap it up
07:13again for general government
07:15accounts discussion at the end
07:15of the presentation. To begin
07:20from the jump here for you is
07:23the executive summary for the
07:23Office of Financial Services.
07:24Our mission is to champion the
07:25financial health of the city.
07:26>> And its residents while
07:27facilitating organizational
07:30effectiveness in 20 other
07:31goals are stated to be
07:32invested in payroll and
07:34benefits administration to
07:35really be alleviated you. I
07:36pressures and also to
07:39prioritize deferred
07:39maintenance to address the
07:40backlog repairs.
07:43>> And that's manifested in
07:44some of the changes from 2026,
07:46which includes the addition of
07:48an account position to support
07:49to you. I payroll and benefits
07:50administration. You all heard
07:53from the Saint Paul Police
07:55Department in their
07:56presentation to you regarding
07:57the transfer of events and
08:00festivals funding to that
08:00department will show up here,
08:01but it will be and that the
08:04entire city budget. And that's
08:04your change. Here is
08:09organizational chart for
08:10Office of Financial Services.
08:13One thing I would like just a
08:15pause admire is that it's both
08:16more than just budget and
08:17accounting. There are a lot of
08:18business. You need to know it
08:19best provide a lot of valuable
08:21resources. The city
08:23departments and that would be
08:24to support real estate.
08:26Treasury and our fleet service
08:28techs I the deal streak grass.
08:33Updates. A recent The 2024
08:34adopted budget included the
08:38creation of a central grant
08:39office. How do they do it And
08:41we are happy to report some of
08:43the successes this year being
08:45the security of 8.5 million
08:47Congressionally directed
08:49spending. We hve confirmed
08:51with senators dismiss office
08:53that that is from their
08:55understanding the most
08:57successful municipality it
08:57across the entire country. As
08:59far as dollars coming in. We
09:02have also implemented a vendor
09:05payments on time and under
09:05budget from
09:06the original a R allocation
09:09and tat's increased a vendor
09:11payments about 5, 202%
09:11year-over-year. Also happy to
09:16report on point of all new
09:17solid waste fleet for public
09:18works with Fleet division that
09:23delivered 22 vehicles and
09:23pieces of equipment wth a
09:25total investment of 3 million
09:25dollars and then also want to
09:26add their continued piority
09:29to appropriately reflect the
09:30cost of those vehicles in
09:31their blling practices to
09:34recover those costs and
09:35financially manage them in a
09:35more sound way and then last
09:38but not the city had bond
09:42rating reaffirmed through our
09:44sale earlier this year for
09:44triple a stable outlook and it
09:48reflects the robust financial
09:49management and forward looking
09:50strategies that we all have
09:51partnered in years past. To
09:55provide you bit with the
09:56budget. Recap lne item basis
09:58here. This is the summary of
09:59what the council adopted for
10:01the current budget year. That
10:05includes what you're used to
10:06seeing as far as the
10:07current service level just the
10:10removal of an accounting clerk
10:11at previous productions of
10:14professional services. And the
10:15shifting of the business
10:15support manager to a special
10:16fund. The budget will get into
10:22this more in the presentation.
10:23offense also has significant
10:26allocations of many other
10:27funds this is just a preview
10:31of future information you'll
10:32see for special funds you
10:35should buy now used to seeing
10:36spending and finance offset
10:37because we must raise the
10:38appropriate revenue via those
10:40special fund to pay only for
10:41the cost associated with the
10:42work. Onto 27 proposed. These
10:47are the list of the general
10:48fund or debt reductions. There
10:50are many I And happy to enter
10:54anything specifically about
10:54them. But broadly speaking
10:55each one reflects analysis to
10:59align the 27 budget with our
11:01historical actual spending
11:02within these buckets. So they
11:05should not result in any
11:05changes to ofs operations, but
11:09merely represent a more
11:10accurate accounting of what
11:11Ofs actually spent in a given
11:13year. And as such, we have
11:15reach the through this
11:17process, the target that was
11:19given to us by the mayor that
11:20you're all familiar with 4%
11:21across the board cut. One
11:25thing to note, mentioned this
11:26from the jump that the
11:29$155,000 transfer festival and
11:31events funding speak PD is not
11:33included in the total here
11:34just because I did not want to
11:36confuse the offset nature by
11:36that transfer of the
11:37appropriation. 2020. of those
11:41changes. Here are the 2
11:42general fund increases. There
11:46is the great service level
11:46adjustment that year again
11:47used to seeing and inclusion
11:50of a payroll counted
11:52that was due expire Pryor Apa
11:56resources. So this funds that
11:58position on going out of the
11:58general fund and is dedicated
11:59to payroll and benefits
12:00administration. Again, here's
12:03a list special funds. I can
12:06provide a brief bit of context
12:10for each for city grants. This
12:11is correction to the Office of
12:13Financial Empowerment Grant
12:13Budget to reflect annual
12:15spending versus multi-year
12:17grant project budgets for fun
12:21to 11. This decrease reflects
12:22the spend down in the sunset
12:24of the electronic payments
12:25project. I mention from the
12:26jump as well the project is
12:29expected to have a balance
12:32after that 300,000 from its
12:35original 1 million Dollar
12:36appropriation. And as you have
12:38seen in the public works
12:39presentation. That allocation
12:40is being proposed to be
12:42reauthorized for teens and wax
12:43spending. And then last but
12:47not least there is adjustments
12:49made on this slide for the
12:51assessment fund. And this is a
12:53largely related to street
12:55projects funded by the
12:56comments that sales tax. We're
12:58still assessing properties for
12:59any private benefit that
13:01property owner would have seen
13:02from that reconstruction
13:04project. So this budget amount
13:05catches that. Assumption
13:09increased work and
13:11reconstruction due to the
13:11comment and sales tax in the
13:12future. The last flight here
13:19for the proposed budget
13:21changes forth. The very
13:23special funds have to do with
13:26central service. There are 2
13:29FTC's proposed to be added in
13:30the budget to Treasury
13:32staffing updates. This funding
13:35is sourced from a charge ofs
13:37charges to departments that
13:38have funds that the city
13:40actively invest That is a
13:43benefit to those departments
13:44because they receive a pool
13:46interest rate returned back to
13:47the fund on a regular basis.
13:51And for accounting purposes
13:55are mainly to support work in
13:57our acounts, receivable and
14:00of overarching. Work and then
14:04will hopefully streamline high
14:05volume building processes,
14:07improve the city's ability to
14:08deliver timely services. The
14:133rd line and Essential fund is
14:15related to deferred made it.
14:17This is funds from the
14:18proposed 0.5% Levy that will
14:22augment existing resources to
14:23more effectively address
14:24deferred capital maintenance
14:26needs into the fit facilities
14:28like heating ventilation,
14:30siding windows doors, other
14:32building components. The funds
14:34will be also used to support 2
14:35new staff positions. You know,
14:39it best to manage ad
14:39administer the budgeting. And
14:40tracking asked that we
14:41receive. For the last fun with
14:45it on the slide for Fleet
14:45Services debt on what you're
14:48just seeing here is the
14:49current service level
14:50adjustments, but also the
14:53other side of item that was
14:56reductions, which included a
14:57shifting a portion of the
14:58fleet manager. FT from the
15:00general fund to the Fleet
15:01Services Fund. Have this boy
15:07or come up and present this
15:07slide for the climate action
15:08plan. Thank you, Mr. Jaime.
15:16Chair Genson Councilmembers.
15:17Pleasure to be here Boyer.
15:18Climate Action coordinator.
15:22>> And I have some know it
15:24which I don't usually have.
15:25I'm gonna try to stick with I
15:25didn't want to forget
15:27anything. Full disclosure have
15:28spent most of the last 48
15:30hours frantically moving EV
15:33cars from the street to secure
15:34parking. So wanted to make
15:37sure to say everything that I
15:37wanted to say. And OK, our
15:43climate proposal here before
15:45you
15:46>> is largely predicated on 2
15:47recent city Council actions.
15:50First of all, the adoption of
15:51our updated climate action and
15:52resilience plan which we
15:53affectionately call the cart.
15:55And which was unanimously
15:56adopted last May. I'm sure
15:59remember discussion at that
16:00time. We noted that the
16:01implementation and of the
16:04actions and achieving the
16:05aggressive goals and the curve
16:07would necessitate additional
16:08investment over the coming
16:11years and this climate budget
16:13proposal included in the
16:14budget is a start in that
16:14direction.
16:19>> And secondly, second count
16:20election was your recent also
16:22unanimous?
16:23>> Support for the newly
16:26renegotiated climate,
16:26franchise agreement with Xcel
16:28Energy. This new agreement
16:30will bring in additional
16:31revenue for the city that's
16:32calculated based on a
16:36percentage of the energy
16:36consumption by residents and
16:37businesses in the city. This
16:40consumption is the primary
16:41driver for our greenhouse gas
16:42emissions in the city of Saint
16:43Paul. So as we have discussed,
16:45it stands to reason to
16:48dedicate a portion of those
16:49additional revenues towards
16:51alleviating the impacts of
16:52this energy consumption. And
16:55as you know, the projection
16:56for the new of the franchise
16:58agreement. Revenue for 2027 is
16:59approximately 29 Million. I am
17:03here today to present the
17:03initial climate commitment.
17:07For 2027 from an amount which
17:08is $500,000. First, before we
17:11go through when it was, I just
17:12want to address. The question
17:16that I know he's come applies.
17:17This included in FS Budget.
17:21most of the priority action
17:22items in the climate action.
17:23It was only its plan. Don't
17:26really follow lead in to any
17:27single individual city
17:29department, implementation of
17:30the updated card will take
17:33coordinated, cohesive
17:34collaboration across city
17:37departments and of all our
17:38departments. As director Heidi
17:39mentioned at the outset, ofs
17:42is best position to house
17:43initiatives like that. Other
17:46examples that have already
17:47been mentioned here today are
17:48the feet services, real
17:52estate team designing
17:53construction that services
17:54departments across the state
17:55as well as our grants team led
17:57by a program administrator but
17:59serve staff departments across
18:00the city. Okay. First of all,
18:04the climate director position.
18:07And as you all know, this city
18:08has taken.
18:11>> And embedded model of
18:14staffing climate work into
18:15city departments as opposed to
18:17a separate
18:17>> office. Up till this point.
18:22And that work to largely
18:22because in the previous
18:24mayoral administration, rest
18:25Stark, who was and a political
18:28appointee in the mayor's
18:29office, but really functioned
18:30more as a program manager
18:32program director kind of
18:34coordinated the work across
18:37departments. So with the loss
18:38of that position while staying
18:41involved in this work is still
18:42a priority of the current
18:44mayoral administration. We
18:44don't really have that
18:47dedicated program leader to
18:49give overall direction to all
18:50these individual components in
18:51the different departments.
18:52This type of work really needs
18:56to be implemented at a higher
18:58level than a coordinator
18:59position in order to most
19:00effectively and make
19:02officials, climate goals. And
19:07one more note on that topic,
19:09something that we talked a lot
19:10about in curb update process.
19:14the issue of control versus
19:14influence. Where does the city
19:18have 100% control? And where
19:22does the city really need to
19:22partner with and influence
19:23decisions made by other
19:24entities? Much of the work
19:26necessary to achieve our
19:27climate goals is not 100% in
19:29the city's control
19:31relationship. Building
19:33collaboration, building
19:34influencing decisions of those
19:37other entities are all key
19:37components of real progress.
19:41And a sustained consistent
19:43staff present is really to to
19:44make long-term progress.
19:49>> Okay. EV and EV programs.
19:51I'm sre you all have a lot of
19:53questions about the future of
19:55electric car. Sure. Given the
19:56announcement last week of our
19:57Carson setting.
20:00>> And to be is so do and so
20:02does everybody else has been
20:02working on this over the last
20:03week. Just know that the
20:08situation was nobody's first
20:08choice. Knowing that we have
20:14approximately 1000 more slides
20:15to get through. Yet this
20:17morning, though, I'm going to
20:18say for the purposes of that
20:20budget discussion here today.
20:23What I'll say is we are laser
20:26focused on securing the
20:27city-owned assets. So our car
20:28on their cars, the city of
20:32Saint Paul actually owns the
20:33lease is on the EV the
20:34electric car share cars for
20:37the evening program. So before
20:41our car sunset tomorrow at
20:43noon, we are focused on
20:46getting all of those cars off
20:48the streets and onto secure
20:48city parking lots. Showed out,
20:52showed out to the city of
20:53Saint Paul of staff and
20:55leaders who people have really
20:56been coming forward and
20:57helping us to figure out how
20:57to do this. on the paper
20:59yesterday we had 32. They are
21:03to that trainees learning what
21:04other duties as assigned to
21:07means driving cars to their to
21:08do a So as it relates to this
21:14budget item, what I will say
21:16is that securing these
21:17vehicles to city property is
21:21that first step to making sure
21:22that we have all of our
21:22options open in the coming
21:23weeks and coming months, our
21:25car has served. Beautifully as
21:30a partner and program operator
21:31for the electric car. Share up
21:32till now. This is not that's
21:35not the only possible
21:37operating model and these cars
21:40are assets. So we're working
21:42to identify and develop
21:44alternatives, trying to buy
21:46ourselves as much time as
21:47possible to do that and make
21:49sure that the cars are safe
21:50and secure while we work on
21:53it. whatever the next
21:55iteration of this program
21:57looks like investment will be
21:57necessary. Providing just also
22:03want to reiterate that
22:04providing reliable electric
22:05shared mobility has been
22:07really highly visible priority
22:12our of of our city's climate
22:13action, as well as equity
22:13goals. That's that. Climate
22:20response fund. This is the
22:22beginning of the actionable
22:23project fund where we will be
22:24able to start to push towards
22:25tangible action on our climate
22:26goals. And this is intended to
22:29be a dedicated source of
22:29funding available throughout
22:30the year. to be able to act on
22:35climate priorities when
22:37opportunities arise. key
22:38example grant opportunities
22:40that come up. Federal state
22:41philanthropic grant
22:43opportunities that often
22:44require a match. And if we
22:47don't, we didn't identify X or
22:49so year before, we can't go
22:50for that grant opportunity,
22:53these grants give us the
22:54chance leverage many times the
22:56amount of of the grant match
22:58to accomplish. But we need to
22:58have the match there, too. And
23:02there are also a potential
23:04city maintenance and
23:05construction projects that
23:06could incorporate additional
23:07decarbonization features. If a
23:08little bit more funding was
23:10available to make the math
23:12work expenditures through this
23:14fund will be subject to
23:17oversight and approval through
23:19the administration and council
23:20just like all other a budget
23:21amendments her. And then
23:25lastly, a dedicated source to
23:28pay for our 3 main
23:29climate-related subscriptions
23:32and memberships. First is The
23:34company that supports our
23:35Climate Action dashboard.
23:38They're amazing and provide
23:40exceptional support and
23:41service. They're actually
23:41based in Finland and may
23:45service city is globally so
23:46they provide connections. We
23:48actually just convince
23:49Minneapolis to go with that as
23:50well. And USD N is the urban
23:54sustainability directors
23:56network, local government
23:58sustainability staff network.
23:59They provide knowledge,
24:00resources and partnership. In
24:02addition to connection to
24:05funding opportunities and
24:06support for developing
24:06partnerships to go after those
24:08funding opportunities. And
24:09then lastly, plea which stands
24:13for local governments for
24:15sustainability. I don't
24:16understand either how the
24:16acronym comes from tat name.
24:20in addition to similar
24:20providing resources and
24:21connections to other local
24:23government, they provide
24:24access to a to a cold, clear
24:26path, which is what we used t
24:29calculate or annual greenhouse
24:29gas emissions every year. So
24:33access to that tool is the
24:34main the main feature of Thank
24:38you. Must It's just like your
24:42hand, but we're going go
24:43through the slides to get
24:45through for the timing today,
24:45Celtic questions at the
24:50>> Thank you. Chair Johnson.
24:53I'm going to pick up back
24:55where we left off with our
24:56been fun to 11. Here's a list
24:59of the balance of the
25:01appropriations made a lot of
25:01these resources.
25:05>> All told the only thing to
25:06note would be again, the
25:07reallocation of
25:09>> project for electronic
25:11payments. That will be
25:12repurposed for public works at
25:12evenings for eons.
25:15>> Otherwise ofs can report
25:18funds are already are fully
25:19spent or we will be fully
25:21spent by the end of the year.
25:27>> Chair Johnson, this slide.
25:28reflects the historical budget
25:30to actuals for that City
25:30General Fund appropriation to
25:31office. What I will just 2
25:35things one which you can see
25:36is self evident. Is offense
25:38consistently returns funds to
25:39the general fund. I would just
25:43note that with the changes
25:44that we are proposing in 2027
25:45that the returning to fund to
25:46the general fund.
25:49>> Will.
25:50>> The expected to be less?
25:52Because we're better
25:52appropriating the dollars with
25:54their actual expenditures.
25:59>> Terry Johnson, the slide is
26:00a budget summary report. These
26:04are you seeing these funds
26:04through 20's. 27 all total
26:09were happy discuss specifics.
26:10Should the Budget Committee
26:12wish? I'll jst note one thing
26:14that obviously is notable from
26:16the jump looking at the slide
26:17is the large increase to be
26:20internal, a loan fund in 20
26:22from. 24 to 25 all of that.
26:25That's primarily due to
26:28internal loans and lines of
26:29credit for having bridge the
26:30heights and the recycling and
26:32solid waste vehicles, if you
26:33would like more details on the
26:33contents of those
26:36>> loan agreements that the
26:37city's entered into
26:38internally. We'd be happy to
26:39follow up directly with you
26:40all. This slide shows summary
26:45of Ofs Fte since 2023. all
26:49know that the increase this
26:51proposed budget includes a
26:55total of net 4.7, 5 Ft ease
26:58that are spread across mostly
26:59to central service for fun
27:02related to the Treasury
27:04updates as well as the
27:05deferred maintenance work.
27:09This is the current status of
27:11unfilled positions and they're
27:12appropriate fund with offense.
27:12We have They can't get in a
27:17straight. A role in asterisk
27:18because it is currently being
27:19fulfilled on a part-time
27:20basis. We have a vacant senior
27:22grant specialist role that
27:24should be interviewing next
27:25week. And that is due to a
27:26vacancy from the elevation of
27:28this while Bird to deputy
27:29director recently. We have 3
27:33positions that proving tough
27:35to fill at the Fleet Service
27:37garage. That is a big can
27:38welder into vehicle tax.
27:43Revenue trends. Change is an
27:45outlook for our various
27:46special funds assessments.
27:48These are generated by special
27:49assessments which vary a lot
27:51based on projects. Like I said
27:56before, there's adjustment
27:57with the local option. Sales
27:58tax projects. And one thing I
28:01forgot to mention when we
28:01reviewed that slide before is
28:03the information. Yes, I
28:05presented on Houston to
28:07basement nuisance abatement to
28:08in their budget proposal has
28:09an assessment portion that
28:12it's required to show up in
28:12this special fund as a charge.
28:17Internal borrowing. These are
28:18just revenue coming in
28:19repayment. It varies just
28:21based on the needs and the
28:21amount of internal loans that
28:22exist throughout the city.
28:25Central service varies year to
28:27year. But broadly speaking
28:28there, charges for financial
28:30technology costs depending on
28:32on the provision of tat
28:34service. And lastly we operate
28:38and Internal Service fund
28:39itself. But that revenues
28:40generated from the fees they
28:42charge park's public works for
28:43the of their assets. Doesn't
28:49that concludes the operating
28:49budget proposal and I'm happy
28:50to stand for questions.
28:54>> Thank you, director for me
28:54out. I'm most likely bring
28:55back up player at this time,
28:56too. And then go over too.
29:00Chair toast for your question.
29:01Think students where I had
29:06couple comments and questions.
29:13Future here. I really
29:14appreciate
29:19>> investments in the budget
29:20for for climate action goals.
29:22I think that, you know,
29:23anything our city is serious
29:25about which we're serious
29:25about climate action deserved,
29:27you know, ideally their own
29:28office. But at a minimum,
29:30their own director and excited
29:34about the climate
29:35infrastructure in response
29:36fund that something similar.
29:37That is something I've been
29:37interested in for a while. So
29:39I also just I appreciate what
29:40you said about the easy spot
29:44program. You know, the news
29:45last week was very
29:46challenging, but I think your
29:50point that if we want to
29:51continue some type of
29:53operating model, it's going to
29:55require investment. And I know
29:56we're still in the early
29:56stages of figuring out what
29:57that looks like. But I care a
29:59lot about that program hearing
29:59from so many folks across the
30:03city that you know, really,
30:06really said about our car and
30:06want to see some type of
30:07program in our city in the
30:10future. And I was really
30:11excited about how we're going
30:12to be expanding to the east
30:13side and for my word, I heard
30:15a lot from a lot of students
30:16McAllister's Saint Thomas and
30:20the surrounding area that
30:22utilize that program a lot. So
30:25I just wanted to to to share
30:26that. And then I guess my
30:28question is about the climate
30:31infrastructure in response
30:32fund is that basis that fund
30:34infant to 11 essentially or is
30:35it going to be a separate
30:37fund?
30:38>> It into a chair genson
30:40councilmember just in to 11
30:41like separate line item in the
30:42to 11 fund.
30:46>> Okay. So like the the
30:46revenue from that will have
30:47its own line item and then it
30:49would be whatever we designate
30:50would could only be used for
30:53that purpose. Correct?
30:54Trackable Trackable
30:55individually. They're okay.
30:56Thanks.
30:59>> Thanks, Chair, Jules. And
30:59then also just as a couple
31:01things I did have a couple
31:03folks that have reached out
31:05about the time a director
31:06position immediately following
31:07the premiums that are no what
31:11conversations, mayor, not
31:12having happening with the
31:13community because there were
31:16conflicting viewpoints. I
31:16think just around folks
31:17wondering are being told that
31:18there was some sort of cut
31:19from the administration or
31:21from that councils rgarding
31:23the climate director. point,
31:24are you aware of anything like
31:25that?
31:27>> Chair Johnson, thank you
31:28for the question. No synced up
31:31remaining on Monday by
31:33literally have been driving
31:34because having have it. Every
31:35conversation I've had has been
31:36about. You beat to be honest
31:37with you. So I don't.
31:40>> Yeah, me neither. I
31:41definitely just want to make
31:41sure for folks that are here
31:42today just because I was like,
31:43where is that coming from? As
31:47a follow-up to that? And for
31:48the QB car sharing spot
31:49programs. I know we're going
31:49to be talking about. We will
31:53later This I will just share
31:54one our offices. Priority is
31:55as well around what we
31:58currently have. There's like
31:59predicting the future in.
31:59There's actually position we
32:02have now because we're in the
32:03middle of budget conversations
32:04as fair to also ask for some
32:08sort of follow up on like what
32:09we are learning from other
32:10operators. What estimated
32:11costs it could look like
32:12because I think planning ahead
32:16would be really helpful,
32:16especially around when we're
32:18talking through franchise fees
32:22additional budget songs like
32:23the earlier we are able to
32:25understand the financial
32:25impact of this decision for
32:29hours are share to close. And
32:30the fact that we do have, you
32:32know, our own cars that we all
32:34are charging points basically
32:36are in search for an operator.
32:39Be really great. Understand
32:40even an estimate, a financial
32:41impact that we would have to
32:43attend for planned for before
32:45the season before the budget
32:46cycle and means because I that
32:50conversation is and now thing
32:51I know we're all working to I
32:52almost want to get that 32
32:53names of the cadets in just a
32:55personally be able to think to
32:57myself. But I think, you know,
32:58just all the different work
32:59that we're doing, I know
33:00that's one thing. But it seems
33:01like the time to discuss the
33:04costs that we may be
33:05projecting could be now. Cad
33:09Johnson, you are absolutely
33:10correct. And we prioritizing
33:12that just as much as we're
33:14prioritizing securing the cars
33:14and getting them off.
33:18>> We've been in daily
33:18meetings, daily conversations
33:20with all of the different
33:22parties involved. You know,
33:23there's a lot of different
33:24layers and components. It's
33:27it's
33:27>> innovative and creative and
33:28unique program that I feel
33:31like everybody who has been
33:32touched by it or been involved
33:34with it is proud of.
33:38>> And and there a lot of
33:39dedication and interest in
33:41figuring out what the next
33:43generation of creative
33:45innovative shuns that are also
33:47financially viable. And have
33:51it has to be, you know, it has
33:52to be all those pieces of the
33:52puzzle that that fits
33:53together. I would say we are
33:59working on gathering all of
34:00those details ad information
34:01to help inform the decisions
34:02going forward.
34:04>> Hopefully by noon,
34:07hopefully we'll be halfway
34:08through getting all the cars
34:10parked and the rest will go
34:13smoothly and we're looking
34:14forward to be able turn our
34:15complete attention to that
34:16analysis and some projections
34:17and and communicating with you
34:20at a J will be involved as
34:23well.
34:24>> Yes, thank you for the
34:24inclusion of director also in
34:26that conversation from the PRE
34:27meeting Councilmember Coleman
34:28and then council President
34:30Acre.
34:31>> Thanks, Jared. Actually us
34:31a lot of what I was going to
34:32ask, which is it? Yeah, I know
34:35that we're very much all
34:37dealing with this crisis real
34:39time, but definitely it as the
34:43conversations are is I know
34:43many of us are having
34:45conversations with still
34:45partners and others who are
34:47thinking about what the path
34:49forward look like for electric
34:50car sharing, recognizing how
34:53some changes to our transit
34:54infrastructure. Yeah. Be
34:58really helpful to start
34:58mapping some those out. And
34:59also to be thinking about if
35:00we have dedicated funding that
35:02we are setting aside for the
35:05possibility of car share clean
35:05back in some form, understand
35:09what would happen to those
35:10funds just to get off the
35:10ground in 2027. Hopefully it
35:11will. I think these
35:14conversations that cannot
35:14happen this week. But I think
35:15once. We are through this
35:18week, it would be really
35:19helpful think through and
35:20talked a little bit more there
35:23and make sure that we being
35:24responsible with the funds
35:25that are proposed in the
35:26budget and then also thinking
35:27about what can we be doing and
35:28what investments weight May we
35:28be able to be making in
35:31multi-modal of the structure
35:32support on a car ownership
35:35models in the interim. This
35:36mean that I'm very interested
35:36in. And I think as more
35:39details emerge will be really
35:39helpful to talk through.
35:41president, a Kurd.
35:44>> Thanks, Madam Chair. I
35:45would echo what is coming.
35:46Just said I'm very interested
35:49in the financial outlook for
35:52the future program. I'm so
35:53proud of TV and our pressure
35:56program and I'm devastated by
35:57how it ended. I'm not I'm not
35:58proud of how it and I think i
35:59is really important to be very
36:00candid about that. It was it
36:04was super quick. It put us in
36:05a very difficult position and
36:06it put most importantly, users
36:07and a very, very hard
36:10position. And so as we think
36:11about the future iteration, if
36:12our car itself cannot be
36:16preserved, whatever that next
36:16iteration is, which I
36:17absolutely think we need I
36:20just want to make sure we are
36:21never in a position and our
36:23users are never in a position
36:24like this again where it is
36:28suddenly so urgent that we
36:29scrambling on all fronts. And
36:30our users are just left
36:30without option. So my my
36:34question about it as we think
36:36about the $700,000 that we put
36:36into the program, $300,000 in
36:39Minneapolis, been to the
36:40program, want to make sre
36:41that. Those dollars or not
36:44good after bad. So 2, I want
36:47to make sure we use those
36:48dollars for any future
36:48duration and not to go to the
36:52company that is no longer
36:53operating. So I I want to make
36:54sure that untangling those
36:56funds, whatever extent
36:57possible so that we can if we
36:58can use them for future
36:59operations, if we can climb
37:00back so what extent is that
37:02conversation happening?
37:07>> Chair Genson Councilmember
37:08Coleman, council member in a
37:09curb. A couple things. First
37:12of all, to your point to
37:16Councilmember another part of
37:16the EV and charging
37:18infrastructure is the charging
37:19stations themselves. And and
37:23we have 30 ish almost 40 of
37:25those stations across the
37:28city. One site is dedicated to
37:30even harsher one side as
37:31public available for public
37:34charging. We will you know
37:35that the public charging piece
37:36of it doesn't necessarily need
37:38to influenced by the hour.
37:40Car. We know what happens to
37:42the EV side. Does it get
37:44repurpose to you know, those
37:45are questions, too. So there
37:47are program eements that that
37:51that can continue while we're
37:52still trying to figure what
37:52the next iteration is. The
37:56other thing too, that I would
37:57say is. You know, we've been
38:01working with our Kyra for most
38:03of this year on this budget
38:04gap. And it's you all
38:07dedicated 176,000 and change,
38:11new additional money in
38:12January to help close the gap.
38:15We knew that this gap was
38:16looming in coming. It
38:19genuinely is there are longer
38:23term alternatives and options
38:24that are available into 2027.
38:27But it was this gap to get
38:29from where we are now till
38:31then that they just couldn't.
38:32They just couldn't close that
38:33gap. And and there was some.
38:38And Iit felt sudden to the to
38:42users and folks who weren't in
38:44those conversations. I know we
38:45feel for that there some legal
38:51and financial advice that our
38:53car staff and board members
38:55received that sort of
38:55influence that decision in the
38:57last week. And I think part of
38:59the reason that it felt so
39:02quick was everyone was
39:03dedicated until the very last
39:05possible, sir. In fact, still,
39:05if you ask CEO Amanda LaGrange
39:08of our car, someone came in
39:12with money to close that gap
39:13today. Could we reverse this?
39:16Yeah. Until noon tomorrow I
39:17think is what you know is what
39:17you would say. We've start.
39:20We're trying to be responsible
39:21in initiating the sun setting.
39:25But our what we keep saying is
39:26we're trying to not make any
39:27reversible decisions until we
39:28absolutely have to. So a
39:31couple things. So so. I think
39:36the severity of the budget
39:38gap. It just I don't know
39:42where we dropped the ball and
39:45communicating that. But this
39:46this is the very real and
39:48catastrophic consequences of
39:50this gap have been no one for
39:52most of this year and
39:53communicating and just ran out
39:55of runway, ran out of time for
39:56it. If you look at another
39:59question. Just about the
40:02funding that has gone and if
40:02that is going to be.
40:06>> Thank you. Yes. So at their
40:07word, there are 2 main factors
40:09that contributed to the gap.
40:10One is the shift in federal
40:11funding and sort of all of the
40:14cascading downstream impacts
40:15of that philanthropic support
40:19is going in different places.
40:21sources that normally would
40:21have funded this gap, our
40:26funding, you rent security and
40:27other, you know, impacts from
40:29other initiatives that are
40:30necessary and needed to happen
40:31to like people that people are
40:32making our decisions. So
40:36that's one aspect of it. And
40:36then the insurance, the
40:37insurance more than doubled in
40:38a very short period of time.
40:41So that money that we
40:42dedicated to the $300,000 from
40:44Minneapolis is has already
40:46been spent on the insurance.
40:47The insurance is paid. paid up
40:51to the end of this month so
40:52that those funded those funds
40:53were necessary to keep the
40:55company afloat Tll now.
40:58>> whereas just want to make
40:59sure tat we're staying on the
41:01timepiece or he could. But
41:01before you go, I actually hve
41:04a request as well because I
41:05know that this the one 40 is
41:07not representative of the full
41:08I operating car share, which
41:10means there's multiple
41:11departments that are supposed
41:12to be responding. It would be
41:14very helpful to understand
41:15because we did have our car
41:16coming in to present and may
41:19propose their their
41:21breakdowns. We also had public
41:23works also do their budget
41:23with their beakdowns. It's
41:26very helpful for us to
41:27understand. Again, the
41:28financial piece of this is the
41:32money that we placed place
41:32this year for this structure.
41:34What is the remaining costs
41:36obligations? Next year.
41:40There's a proposal of about
41:41$590,000 to any car. Sure, one
41:42way or the other being able to
41:44understand what is still
41:46needed to be able to address
41:47Now, recognizing that I'm all
41:50the investment is needed for
41:51whatever the next phase of
41:52this with like. But the
41:54reality is we are going to be
41:55giving $590,000 to E R even
41:59car share through our car,
42:00which is how this is
42:01originally presented in the
42:03budget. And so being able to
42:05understand that would be very
42:05helpful in getting clarity
42:08numerically as well. So
42:10contextually is what we're
42:12asking for. And I think it can
42:13be done in a follow-up. But
42:14taking the proposed 2027
42:16budget and breaking it down
42:17from what we're still
42:17financially obligated to cover
42:20and then separately working
42:21with the departments that are
42:22also allocating. Public works
42:25PD. They all have allocations
42:26to be the car share like.
42:30Because their cross
42:30departmental conversations
42:31happening about what that
42:32looks like and how that's
42:32going to impact Department's
42:35budget because I do believe
42:37the P b's portion is not
42:38coming from the general fund.
42:40>> Chair Genson. Absolutely.
42:41When we're already working on
42:41that. Right. But we we will
42:46need to see person so there's
42:48a helpful for you working on
42:50it for you, Yeah, I okay.
42:54We'll keep going on to our
42:55next part, which is the debt
42:56and star.
42:59>> She got like Yo young the
43:02city, treasurer up to present
43:02evidence. Good morning. Well
43:16told council members my name
43:16is the enzyme that city
43:19treasurer automated public for
43:20she and sales tax related
43:24budgets and a magical. We're
43:26waiting for questions at the
43:27end of each section yep will
43:28do for your pesentation. And
43:29it's similar to how we did
43:31before will take questions at
43:31the end of the time that we
43:32have left.
43:40>> So the city issues, 2 types
43:42municipal bonds. We really I
43:44mean, this is like the most
43:45simplistic terms is just and I
43:48owe you wish you and a bond
43:51that were essentially saying
43:51to our creditors that we will
43:54repay.
43:54>> Any amount that we're
43:55borrowing. Plus, any interest
43:56on top of that, that is really
43:59at the core of what a
44:01municipal bond is. And so
44:02there's just kind of different
44:02flavors of those ponds. So
44:06when you hear general
44:06obligation, you really want to
44:08think about the pledge that
44:09use to support that. So think
44:13the property tax debt levy. So
44:15we're pledging and use as a
44:17source of security saying that
44:18we have to repay from that
44:20source. The property tax levy.
44:23So we issue under both our GEO
44:27Bonds and then for our we also
44:28issue revenue back bonds. So
44:32for those Joe binds, it
44:33supports are kind of to our 2
44:35largest deal program. So we
44:36have the GEO Capital
44:37improvement budget then our
44:38street construction bounce. On
44:43the flip side, we have the
44:44revenue back on. So these are
44:46secured by a pledge by
44:47whatever the utility system
44:48might be. So, for example, we
44:49have the water revenue bonds.
44:50Those are secured by revenues
44:54that raised by utility users
44:55and rate payers. then
44:58separately in the sales tax
44:59that is we paid for by just
45:01the sales tax itself. And
45:04similarly to the water, we
45:05have the sewer revenue bonds,
45:07those bonds are secured and
45:08repaid by the sewer system.
45:11same for the being us. So in
45:18total, the city has 686.8, 4
45:20million dollars in total debt.
45:22Outstanding. So looking back
45:26at those kind of 2 different
45:27flavors of municipal bonds for
45:29the side. We're close to 258.7
45:31million dollars in total. And
45:34that is just looking at the
45:36principal out. And it does not
45:37include interests. On the
45:41other side of that. We have
45:41these revenue backs on. So
45:44again, sewer, water, parking
45:46all systems credits that is
45:49close to 428.1 million
45:51dollars. And so I think
45:54traditionally it would be
45:55closer to about 250 million
45:57for the G O and 250 for
45:58revenue back bonds simply
46:01based on our capital programs
46:03and capital projections. But
46:07the revenue bonds have
46:09increasing. The debt
46:10outstanding has been
46:10decreasing over time largely
46:11to do with that Lake
46:12Mike cairns Water treatment
46:13plant project. So that project
46:17has close to 235 to 40 million
46:19dollars. And we're coming up
46:20on the last financing for that
46:23project. know a lot of that is
46:25done through the state's
46:26public facilities authority
46:27which comes with it, some
46:28pretty deep discounts for
46:31interest rate. So it's it's
46:32really good deal for the city.
46:32the state structure that. But
46:36that is pushing up our total
46:38debt outstanding program
46:39between the G O and those repi
46:40back bounce. now on to credit
46:50ratings, credit ratings her.
46:50It was their question or no.
46:51Okay. For credit ratings. We
46:57really use to credit rating
46:58agencies right now we use S
46:58and P and Fitch. RG already
47:03has a AAA, which is the
47:08highest quality.
47:09>> The the kind of impact or
47:10what's the importance of the
47:12credit ratings. It and
47:13typically means that the
47:14highest credit rating you have
47:17as like a AAA results in the
47:18lowest borrowing costs.
47:19>> For the city, you know, the
47:23credit rating process is
47:25really just a independent
47:26third-party assessment of the
47:28city's bonds. And we continue
47:30to have some very low
47:31borrowing costs to the city's
47:35AAA rating. And, you know,
47:37there's there's a couple other
47:39of major credit rating
47:39agencies that we don't use
47:42this time. It seems like just
47:43sticking with that. Who is
47:44making the most sense? For a
47:46city our size. I do want to
47:50note that our revenue bonds
47:52for actually downgraded last
47:52year from a triple A to double
47:54A plus largely to do with some
47:56impacts to Some large changes
48:01in revenues and how it impacts
48:02our kind debt service
48:04coverage. So there is a some
48:07large changes and due to rates
48:11the Met Council, Environmental
48:12Services and then also with
48:13the closure of Westrock. So
48:16which contributed to that
48:16downgrade? So I just pulled
48:24support here from our rating
48:25report from S and They
48:28continue to highlight our
48:28strong management and our
48:29strong financial policies.
48:33They could. You highlight our
48:33strong liquidity and are at
48:34low levels of cash to cover
48:35our debt service and any
48:40expenses? Also, they highlight
48:42our strong budget flexibility.
48:44They're always they really do.
48:46Look at that General Fund fund
48:49balance policy and sure that
48:50we are meeting our own policy
48:53and also looking how much we
48:54are above that 15%. They also
49:00highlight our strong budgetary
49:01performance in our ability to
49:04raise revenues. And those are
49:06those are kind of the items
49:07within the cities like direct
49:10control. There are other items
49:11outside of our direct control
49:12that also go into our scoring
49:14and sell. You know, they're
49:15looking at the legal framework
49:16of which the city of Saint
49:17Paul operates within the state
49:19of Minnesota. They're also
49:21looking at what you know, what
49:22does the economy and the local
49:23economy look like for the city
49:24of Saint Paul? So tese are
49:26things obviously that we can't
49:31directly control, we continue
49:32to contribute to over the
49:32longer term. They also have
49:37mentioned are we do have a
49:38manageable debt and contingent
49:41liability position. And so
49:42they have called out some in
49:44the past some of our marginal
49:45increases to those debt levels
49:48as well as some pension
49:50pressures. But those have
49:51someone leave it at the last
49:51couple years. So tis is our
50:00debt model. So we take our
50:02debt service and project it
50:03out at least 10 years. So this
50:05is just a five-year look at
50:07those projections to make sure
50:08that we're raising enough for
50:09revenues to cover our debt
50:10service over the longer term.
50:13Now our debt service which is
50:16represented here by debt model
50:19is structurally imbalanced
50:20over the longer term. So we
50:23have other revenue sources
50:23that go to help pay down some
50:26of The GEO debt that we've
50:26issued in the past. And so
50:30over time we've been needing
50:32to raise the property tax debt
50:34service Levy to to continue to
50:38make headwinds are take make
50:39headway at changing tat. So
50:42you can see here in 2027. We
50:46have 69.3 million dollars in
50:49total expenses. You know, if
50:51we look out by 5 years that
50:52comes down to about 68 million
50:55using our will be no. We have
50:57for debt service, which is
50:58noble number because we have
50:59our debt service schedules
51:00from each ribbon sales and any
51:05authorized an issue, bonds
51:05that we haven't issued yet as
51:10well any anything and some of
51:12our kind of ongoing programs.
51:14We all we put that all into
51:15this model to make sure that
51:17we're capturing everything
51:17over that longer-term
51:18accurately. And then I guess
51:23on the financing side of that,
51:26we're looking the oher
51:27revenue wind there. So those
51:29are from other revenue sources
51:29other than the property tax
51:30budget. So that means there's
51:34transfers there from the sales
51:37tax, the sewer fund, which is
51:37starting to roll off the end.
51:41There's a handful of other
51:44transfers assessments that all
51:45we're going in to support the
51:46debt of the city. But now have
51:48started to roll off over the
51:48last couple years and continue
51:53to be able to meet our
51:54longer-term debt service neds
51:55in the fund. We're continuing
51:56to raise that property tax
51:57debt levy so in 2027, we're
52:01looking at total financing of
52:0469.3. And again, matches with
52:08the expense side by 2031,
52:09we're at 68 Million. So I want
52:12to note here. If next slide,
52:18but the increases here look
52:20like for 2027, we're going to
52:21fire close to 3.7 million
52:22dollars to support the debt
52:25service and then increases of
52:281.5 million dollars again to
52:30continue to chip away at that
52:30imbalance in the fund over the
52:31longer term. So the 3.7
52:39million dollars increase is
52:41largely due to these planned
52:421.5 million dollar increases.
52:46Plus, earlier in the year be
52:48issued 10 million or 9.5
52:49million dollar bond. That was
52:53later refinance to pay for a
52:57large settlement. has a term
52:58of 6 years. And so we need to
53:01do and we financed that
53:04settlement as we didn't want
53:05take a large hit to the
53:07General Fund for one year for
53:08close to 10 million dollars.
53:11so the space that out over 6
53:12years. this model also
53:14represents that increase for
53:15that 1.5 million dollars.
53:17Plus, that's a that increase
53:20from the judgment bond. So
53:30this is the visual
53:30representation of our debt
53:31service fund can see the red
53:35line, our debt service, levy
53:36or debt service continues to
53:37grow over time, especially
53:42with that new or judgment bond
53:44that started, we show you pay
53:46off in 2027 that's led large
53:49jump there. And you can see a
53:49bull on the blue line. Our
53:50debt service, property tax
53:52Levy. We are still targeting
53:55to kind of close the gap
53:57between over raising the
53:59property tax levy and what we
54:00have and that debt service
54:01line over this longer period
54:01of time. So we get this
54:10question pretty frequently.
54:12But so included this here, but
54:13see it. If we if we want
54:14increase the cip program, a
54:19one-million dollar one time
54:20increase in the program at a
54:215% interest rate. Would be
54:24about $130,000 a year for 10
54:27years. So tat would just be
54:28and then they would roll off
54:29and you're 11. And so if we
54:33wanted to do it, 1 million
54:35ongoing, it would require, you
54:36know, over time you'd be
54:37stacking those repayments each
54:39year on top of each other. So
54:43by year 10, you be at the full
54:44repayment of it, which would
54:47be 1.3 million dollars. So
54:50would require if you wanted to
54:50increase the CI the program
54:51ongoing over time, it would
54:55have to be a 1.3 million
54:55dollar increase, the property
54:56tax levy. So it's pulled out a
55:06few of our our capital
55:08programs that are supported by
55:08Gio. The cat debt service
55:12levy. So we have the capital
55:14improvement budget. This
55:15program has been at a close to
55:18around 11 million dollars
55:18since 2006. We also have had
55:23capital notes. The last
55:24increase we did was actually
55:25in 2026 degrees that by about
55:263 and a half percent. those
55:29capital notes go to support
55:30public safety vehicles. We
55:34have Saint Paul Street so that
55:34we have our street
55:37reconstruction bonds that we
55:37share the program. So that was
55:38at 12 and a half million,
55:41which has I think that
55:42increase was back in 2006 and
55:46then a millon over Lake
55:48program that we added
55:512023 for 3 million dollars.
55:51And that's been flat since
55:52then. Just very quick market
56:02This is our current interest
56:02rate environment so back in
56:072020 interest rates really
56:10plummeted due to the fallout
56:13from the COVID-19 The Federal
56:16Reserve dropped interest rates
56:18precipitously and then by 2022
56:23in March of 20 to they started
56:24increase in those equally as
56:26fast and to a higher rate in
56:28its response to inflation
56:29pressures. And since then, and
56:3623 they had, they left rates
56:37largely flat. And then we've
56:38seen some decreases since
56:40then.
56:44>> But with the some of the
56:45federal, federal government's
56:47actions lately, we've starting
56:48to see inflation start to tick
56:49up again.
56:50>> And we're starting to see
56:51the Fed raise interest rates
56:54in response those and does
56:55inflationary pressures. This
57:04slide. This is the MMT. So
57:07this is specific are we in for
57:11a city so job, general
57:15This is looking just looking .
57:16at a triple a rated municipal,
57:19a municipal bonds over the
57:20past since 2006. You can see
57:23there's quite a bit of noise
57:26in there over 25 year, period,
57:3020 year, period. So on that
57:31top line, this is what it
57:32looks like for 30 year, lne.
57:35So.
57:36>> The longer your bar for
57:38it's typically higher interest
57:43rate And so seeing a 30 year
57:44we have sponsor you can up to
57:45about that 5 and a quarter.
57:48>> And then on the 10 year
57:49side of things for a 10 year
57:50term, we're close to 4.2, 3%.
57:55And actually we get just by
57:56walked out of our sewer bond
57:58sale at 10:00AM this morning
58:01and we are at 4.57. So that is
58:02very exciting, which will be
58:04back in front of council today
58:05to or that it. So here's what
58:15we've issued so far this year.
58:17So back in the spring, we
58:19responded to that night and a
58:20half million dollar settlement
58:21and we issued a judgment on.
58:24>> And 2 months later, we
58:27refinanced through our regular
58:28jail competitive sale. So re
58:34issue issue to a point 18.9
58:35million dollars, which
58:35included that refinancing.
58:39Plus new money from sme of
58:40their other projects that are
58:41part of our annual issuance.
58:44>> And then we also at the
58:46same time to shoot 16.8
58:47million dollars for street
58:48reconstruction, refunding
58:49bonds.
58:53>> like I mentioned, we just
58:55are wapping up our sewer sale
58:56today will be back in front of
58:59you.
59:00>> And month from now, we are
59:03actually closing on this
59:0510 million dollars PFA notes
59:06for the carries water
59:07treatment plant project which
59:08will bring us to the end of
59:09the financing for the project.
59:13>> And then as that program
59:15continues kind wean off.
59:19>> We'll start winding up. The
59:22lead service line replacement
59:22project will be issuing
59:25another 7 and a half million
59:26dollars for program this year
59:26as well.
59:32>> And for next year will be
59:33back on our normal schedule.
59:35So we'll be issuing a 15.6
59:37million dollars. That's that
59:3811 million dollar program.
59:41Plus anything that's that was
59:42authorized issued from the
59:45year prior.
59:45>> We'll also be issuing
59:48roughly 2 million dollars for
59:49capital based on what we Those
59:52reimbursement base for public
59:53safety vehicles. So we be
59:54issued about 202 million
59:57dollars. Then.
59:58>> We'll be going back and
59:59issuing 15, a half million
59:59dollars for street. You
1:00:02construction bonds and then
1:00:03another 7 million dollars for
1:00:04sewer revenue bonds. And then
1:00:06back to that 7 and a half
1:00:07million dollars for the for
1:00:08the lead service line
1:00:08replacement program.
1:00:15>> I'm not going to go through
1:00:16all of these because that
1:00:17might be slightly.
1:00:21>> Warrant for everyone. But
1:00:23these of potential refund out
1:00:25for all these different bonds.
1:00:28>> And we are always just
1:00:29keeping our eye the market to
1:00:30see if there's any savings for
1:00:33the city.
1:00:34>> So there are quite a few in
1:00:37here that are are technically
1:00:38a call of all meaning we
1:00:39actually refinance them.
1:00:41>> But the interest rate
1:00:42environment right now doesn't
1:00:43lend itself for that. So
1:00:44there's no savings to be had.
1:00:49>> And before we transition to
1:00:50the star budget, I'll take
1:00:51pause and see if there's any
1:00:52questions related to the debt
1:00:54Peace Council. President
1:00:56maker, thanks, Madam Chair.
1:00:57young it. you talk a little
1:00:58bit more about the 3.7 million
1:00:59hit to the debt service fund
1:01:00this year? I know you said
1:01:02that it's because of a
1:01:03settlement that we weren't
1:01:03expecting and we're trying to
1:01:07instead of taking all of that
1:01:08out of the general fund i one
1:01:09lump sum pace that out over
1:01:10time. But it seems like it's a
1:01:153.7 million dollar increase
1:01:16this year. And ten we go back
1:01:17to our 1.5 every year. So it
1:01:18seems like it's all hitting
1:01:19right now. Is there what was
1:01:20their way too spread out that
1:01:23additional increase more over
1:01:24time rather than having it all
1:01:25come this year.
1:01:30>> Well, Solak than I have
1:01:31really does. The term of it is
1:01:326 years. So increase to the
1:01:34debt service Levy is just like
1:01:35the 2 point. This is 2.6, but
1:01:37it's actually should be 2.2 of
1:01:38the total 3.7.
1:01:42>> So I mean, we're we're
1:01:45going along with our normal
1:01:461.5 million dollar increase.
1:01:47And then we had that
1:01:48settlement. So we
1:01:49>> just added that on top of
1:01:49the 1.5 million.
1:01:53>> So like this, we are still
1:01:55spacing out. Are the repayment
1:01:56of those of that judgment
1:01:58bond? We're still trying make
1:02:02sure that that that's a
1:02:03response toll is positive out
1:02:05Hill. You know, that 10 year
1:02:06period of which be which we
1:02:09view patrol projecting out for
1:02:12it.
1:02:13>> So and this is the way that
1:02:13we can get. There was like
1:02:15that the 6 year term. Plus,
1:02:17this 2.2 million dollar
1:02:17increase to the levee. I don't
1:02:20know if I don't know. I don't
1:02:22think that to kep the model
1:02:23from going in the red within
1:02:25the next 10 years would have
1:02:26worked if. If we had increased
1:02:29by about 2.2 million dollars.
1:02:30Plus 1.5. So answer question
1:02:36number. So there's no way to
1:02:37have the 2.2 million.
1:02:40>> happened over a longer
1:02:41period of time. It all had to
1:02:45be in 2027. And is this a
1:02:45decision that's already been
1:02:46made?
1:02:49>> The those bonds are. So,
1:02:50yeah, is those votes have
1:02:51already been issued. It is
1:02:53going to be paid out of the
1:02:54debt service fund. And if if
1:02:58there is no increase that puts
1:02:59a hole in the debt service
1:02:59fund in the next couple years.
1:03:03And that it's like what that
1:03:04is why we keep trying We are
1:03:06attempting increased 1.5
1:03:07million and then adding the
1:03:082.2 on top o that, the 2.2
1:03:11can't be spaced out that are
1:03:12ready. The you know, that's
1:03:14just one year of a six-year
1:03:15Know.
1:03:19>> And I guess just as a
1:03:20follow up also related the,
1:03:23you know, looking at the
1:03:25incremental like the debt
1:03:27model revised slide. 26 for
1:03:29protecting incremental
1:03:30decreases over time. What
1:03:33would the other unforeseen
1:03:34things that might drive? That
1:03:36number up for its first is
1:03:37that our projections we're
1:03:37seeing here.
1:03:41>> So what there were
1:03:42increases in any of the debt
1:03:44in any of our our bonding
1:03:46program? So I mean, we're
1:03:47still bonding for the same
1:03:48programs each year. So it's as
1:03:51one issue is rolling on. Other
1:03:52ones are rolling off. So I as
1:03:56of right now, unless there's
1:03:58and some other projects that
1:04:00are being planned to be
1:04:01financed Geo Bond side. And
1:04:02this model is kind of like in
1:04:04a stasis s as far as I know
1:04:08right now, there's nothing
1:04:11contribute to this model that
1:04:12would would lead to further.
1:04:14Increases.
1:04:19>> And releases a increase, as
1:04:21I just was wondering, is this
1:04:22something that's being
1:04:22discussed are like kind of
1:04:25what's driving the what's
1:04:26driving kind of the
1:04:27information being Sheridan
1:04:28slide. 29.
1:04:32>> So this yes, yes.
1:04:36>> The I mean, this is just a
1:04:37question we typically know.
1:04:40There's usually interest in
1:04:40increasing the cip program. I
1:04:43would say that the respondent,
1:04:45anything in particular, this
1:04:46is like why. All right. But
1:04:53the star. Okay. Transitioning
1:05:03over to our sales tax budget.
1:05:07>> keep in mind that we only
1:05:10looking here at the half cent
1:05:12sales tax. So the half-cent
1:05:13sales tax and the comments in
1:05:14sales tax are entirely
1:05:15separate and distinct legally
1:05:20authorized taxes. The comments
1:05:21and I I want hear at So will
1:05:25this be looking at this half
1:05:26cent? The half-cent sales tax
1:05:30has been in effect since 1994,
1:05:33I Get that on the next slide.
1:05:37But in the last 20 years, from
1:05:39to 2025, we've seen growth in
1:05:43the sales tax with that is
1:05:46pretty close to increases in
1:05:46CPI. In just over the last 5
1:05:51years, we've seen that growth
1:05:52that close to 2.9 1%. So the
1:05:56sales tax continues to from
1:05:59this slide itself. You can see
1:05:59there's quite a bit in no way
1:06:01is and the last 5 years. Of
1:06:06course, twenty-twenty we side
1:06:08from 2019, largely due to
1:06:12COVID-19 pandemic.
1:06:13>> that increase back up from
1:06:15there back to kind of the same
1:06:17pace. collecting the sales
1:06:18taxes before that. And we say
1:06:22strong growth in 2022. And a
1:06:22plateau in 2023. you'll notice
1:06:28here in 2024, there's this
1:06:29drop down to 21.3 million
1:06:30dollars. Now that. Is related
1:06:35to a way Minnesota partner
1:06:36revenue sends that money to
1:06:37us. It's they move from a from
1:06:422 payments a month down to one
1:06:43payment. And so they changed
1:06:46the methodology for which they
1:06:46send it to us. So now we only
1:06:47received one month. There's no
1:06:51change in kind of the
1:06:53underlying economics any of
1:06:54that dollar amount. So like
1:06:56the basis for which people
1:07:00we're spending did change
1:07:02dramatically from the year.
1:07:03It's just a process change so
1:07:08that that hit just as a
1:07:09one-time hit. It had to fall
1:07:10into one year. And that's on
1:07:13the 2024. So and we had a diff
1:07:16there in 21.3 and just help.
1:07:16You have to report the number.
1:07:20And we're back to 24.7, 5
1:07:21million dollars in 2025. And
1:07:30so far we this year we've set
1:07:32the budget was set at
1:07:3224 million dollars for 2026.
1:07:35and so far year to date, we've
1:07:39collected of slightly over
1:07:4014 million dollars. That is
1:07:42trending slightly above
1:07:43budget. So we're at close to
1:07:44$600,000 right now. And your
1:07:49today. That's for quarter over
1:07:50where were
1:07:54>> sorry, versus budget. Were
1:07:5644% more than for
1:08:04>> Okay. This next slide.
1:08:06talked about how the flow of
1:08:07funds kind works or the
1:08:09distribution of funds for the
1:08:09sales tax. Half-cent sales tax
1:08:11perks. So the sales tax
1:08:15revenue off is split, which no
1:08:17less than 60% has to go to the
1:08:18neighborhood star bucket and
1:08:2310% of that 60%.
1:08:25>> Have to go to the cultural
1:08:26start program. Now on the
1:08:30other side of that, we have
1:08:33rcp, a bucket economic
1:08:34development bucket and the
1:08:36sales can go up to 40% to
1:08:36those 2. It just can't be
1:08:42less. It could no less than
1:08:43neighborhood. In culture, a
1:08:44star less than 60%.
1:08:52>> This is just walking back
1:08:55for a second to look You know,
1:08:56this. This law has been
1:08:57amended 6 times to this point.
1:08:58It was started in 193. and
1:09:00our current authorization was
1:09:01from 2013. The taxing
1:09:06authority expires in 2042.
1:09:09Again, 60% for the start our
1:09:10programs are no less than 60%
1:09:13and 40% for the RiverCenter
1:09:14economic development projects.
1:09:19just going breeze past a few
1:09:21of these.
1:09:21>> And get just to the budget
1:09:22itself.
1:09:26>> So the sales tax revenue
1:09:28base we're in proposing
1:09:29increasing the sales tax
1:09:30budget from 24 million to
1:09:3424.2, 5 million. That's a
1:09:34$250,000 increase from 2026.
1:09:39And the first thing I should
1:09:41mention here is these pledged
1:09:42debt service payments. Now
1:09:43these go
1:09:44towards those buckets. I was
1:09:47mentioning earlier, so the and
1:09:48these are paid first because
1:09:51the sales tax has some legal
1:09:52requirements for how we secure
1:09:54the debt. So these payments
1:09:56are actually made before we
1:09:59actually we receive the funds
1:10:00in our own account to budget.
1:10:04So the 3.3 million dollars,
1:10:072024 revenue refunding that
1:10:10goes under the neighborhood
1:10:12star category. We also have
1:10:14the River Center complex
1:10:17845,000 fr the River Center.
1:10:18And then there's a proposed
1:10:212027 revenue bonds for
1:10:2240 million for the right
1:10:24Wilkins, which will comes with
1:10:25it at a 3.0, 8, 7, 9 million
1:10:27dollar debt service payment.
1:10:29Now, again, those amounts
1:10:32would be trapped within area
1:10:34are pledged and are paid first
1:10:35from our sales tax. And so
1:10:39just to talk a little bit more
1:10:40about this, 40 million for Roy
1:10:42Wilkens. So this is kind of a
1:10:44conservative approach to our
1:10:45larger aena project. Last
1:10:48year, we receive 40 million
1:10:49dollars for the way Wilkins
1:10:52and 10 million for design for
1:10:54the fr the arena itself for
1:10:55the Grand Casino Arena. And s
1:10:59a lot depends on what is going
1:11:00to happen this next
1:11:01legislative session. So if we
1:11:03receive additional funds which
1:11:05we planning to its side. We
1:11:06have still on the legislative
1:11:09agenda to request funds for
1:11:11the entire project. And so for
1:11:15right now, we are considerably
1:11:17saying that the end of session
1:11:22That we're budgeting some
1:11:24match to release the state of
1:11:25Minnesota. 40 million for
1:11:26Rivercenter proper. Smith Roy
1:11:27Wilkens project. And just to
1:11:35go through those about budget
1:11:37changes by those buckets or
1:11:38categories. So you'll see that
1:11:39the neighborhood start
1:11:40program. It's not going to be
1:11:432.3 million dollars, which
1:11:44marks an increase of close to
1:11:47$175,000. Nw this pay go
1:11:51economic development line for
1:11:52arena complex. So this is
1:11:53split between 2 of these
1:11:56buckets and in total is a 1.5,
1:12:005 million dollar increase for
1:12:01both across. When you add
1:12:02these both together from the
1:12:03prior year. And so that's an
1:12:07increase of 3.0. 75 million
1:12:09dollars in that neighborhood
1:12:10starline and then a decrease
1:12:12of 700,000 and are at the
1:12:12River Center category. And
1:12:17then we have a culture, a star
1:12:19program that will see an
1:12:22194,000 and then the economic
1:12:23that economic development
1:12:25bucket. also see the increase.
1:12:26That's the capital projects
1:12:28for although over $100,000.
1:12:35And read a simple questions.
1:12:37>> And then as a follow-up to
1:12:41the slide, could you share it?
1:12:41So the neighbor to clarify the
1:12:45neighborhood start portion
1:12:46that's going to the arena
1:12:48complex. So that 3.7, 5
1:12:49million of the 5.0, 2,
1:12:525 million overall is that
1:12:54embedded within the 60% that's
1:12:56given to neighborhood star a
1:12:5660 40 split.
1:13:00>> So that's still within that
1:13:01larger buckets
1:13:08>> If you know you're going It
1:13:17All
1:13:20>> so yes, that would fit
1:13:21within larger neighborhood
1:13:21star bucket.
1:13:24>> So you can see on the slide
1:13:28that the 2.7 5 is just under
1:13:29that neighborhood star, which
1:13:31is separate from that
1:13:31neighborhood start program
1:13:32online. 12. And why 19 is what
1:13:35we're looking at right now.
1:13:37>> That answer your question.
1:13:38Yeah, I think it poses the
1:13:40question that I think one of
1:13:42that for context. But my
1:13:43question to you is that seems
1:13:43like a roundabout way to get
1:13:44past the state. The state
1:13:48required breakdowns when we
1:13:49have the 60 40%. But of the
1:13:5260% were giving
1:13:53Three-point-seven-five to the
1:13:53arena complex. And I'm just
1:13:55kind of wondering like, how do
1:13:55we need that authority
1:13:56threshold when we are supposed
1:13:58to be doing at most a certain
1:14:00amount. And we're already
1:14:03doing at least like, you know,
1:14:04the most about that were
1:14:05allotted a neighborhood start
1:14:06like we are at that least
1:14:06threshold. This interesting to
1:14:10me. It seems like a way
1:14:10meeting the requirement, bt
1:14:11it does seem a little around
1:14:12about when I look at the law,
1:14:13the the statute, I'm just
1:14:15worried how we how do jstify
1:14:17that?
1:14:22>> Chair Johnson, the
1:14:23Three-point-seven-five does
1:14:24fit within the neighborhood.
1:14:25Starbuck it the allowed use
1:14:27us. So if it's within both
1:14:30that the neighborhood star
1:14:30budget and the RiverCenter
1:14:31budget. The I based on the
1:14:37language that a statute is
1:14:39that is making the Arab
1:14:39project dn't fulfill.
1:14:42>> Those neighborhood that
1:14:43neighborhood star program.
1:14:46>> So this is like the 3.75
1:14:49million dollars is technically
1:14:50within a legal requirements of
1:14:51the neighborhood star.
1:14:57>> probably have more
1:14:58questions to find You have to
1:15:02I your hand. Yeah, I just have
1:15:05a question. know. last year we
1:15:05attempted to get money for te
1:15:07same project last year. The
1:15:08legislature he talk a little
1:15:09bit about like the flavors
1:15:11money for like the approach I
1:15:14no one was around, maybe
1:15:16extending the deadline for
1:15:16like how long we could use
1:15:18star for. Can you just speak a
1:15:19little bit to sort of like,
1:15:22you know, we're hoping to
1:15:23receive legislative money like
1:15:25where can. You just tell us a
1:15:26little bit about what we knew
1:15:27from last A a reminder of how
1:15:30and where we got stock.
1:15:35>> Yeah. Chair Johnson
1:15:36Councilmember the so this deal
1:15:37has changed quite a bit over
1:15:38the last 3 years since I've
1:15:42been here in February, we
1:15:44signed the goal. Alright, a
1:15:45framework with the team which
1:15:46we're looking at.
1:15:48>> 600 million dollars for for
1:15:49the project in total
1:15:52>> there's there's no scenario
1:15:53in this where we can finance
1:15:54or 200 million dollars without
1:15:55an extension of the sales tax.
1:15:58Right now, the sales tax goes
1:15:59up to 2042 and we will need
1:16:02that extension out to least 26
1:16:04to 2061 for us to have enough
1:16:05capacity within the sales tax
1:16:06to issue those barns. And have
1:16:11been other versions of this
1:16:14project. We've looked at them.
1:16:15And so the vents tiff.
1:16:18>> Potentially. I mean, this
1:16:20project has kind of fluctuated
1:16:21from 600 million dollars even
1:16:22up to a billion dollars at one
1:16:25point.
1:16:26>> I think at one point in
1:16:28time Ramsey County was
1:16:29potentially going to be
1:16:29another source on the project
1:16:31with some of have sent transit
1:16:32fund.
1:16:33>> Our transit attacks or even
1:16:38the economic development But
1:16:40we as as of this agreement we
1:16:43have with the the the most
1:16:46efficient use revenue sources
1:16:47right now is just that half
1:16:47cent sales tax.
1:16:51>> Now there's other projects
1:16:51that still has to that are
1:16:55around the project. We have
1:16:57the River Seine, a ramp that
1:16:58still also needs renovations.
1:17:00So I don't think ad.
1:17:03>> This is the full scope of
1:17:04the project right now. Does
1:17:07that answer your question
1:17:07about Thank you.
1:17:14>> thank yu so much. Going
1:17:16see a B. Thank you. Yeah,
1:17:19appreciate your time. Thank
1:17:20you for the presentation
1:17:21today. And this overall with
1:17:22we have additional questions.
1:17:26probably might will follow up
1:17:27with you after Well. And
1:17:38that's what we're going to do.
1:17:39Quick time check for you.
1:17:39We're going to be raining up
1:17:41again, selling 45 timeframe
1:17:42that I'm actually going to ask
1:17:45for you to do this
1:17:45presentation and 15%. The 30
1:17:46minutes that we had discussed
1:17:47to give time for general
1:17:48government. coming you can
1:17:52adjust the clock to that as
1:17:53well. I think we can get
1:17:53through with the size that you
1:17:54have.
1:18:00>> had 2 minute. great that
1:18:02Senate 11 45 and we have your
1:18:04presentation and the general
1:18:05government to 50. I'm Michelle
1:18:10Micah, what I'm budget
1:18:11analysts that works with the
1:18:13Cip Committee and I have an
1:18:16abbreviated version of the
1:18:17presentation today. So let me
1:18:18know if you do have full of
1:18:19questions.
1:18:20>> I love talking about see it
1:18:20with.
1:18:21Really anyone. Listen it.
1:18:29>> just come that quickly,
1:18:30recap sort of our budget, the
1:18:31capital improvement budget
1:18:32follows a two-year. Budget
1:18:37process, which is different
1:18:38from our operating budget. So
1:18:39I just have this visual up
1:18:41here to sort of highlight
1:18:41where we're at in the process
1:18:42and what to expect going
1:18:43forward. Last year was your
1:18:47want all of the odd years
1:18:47happen? And sorry and
1:18:53>> last year was our
1:18:54department process that the
1:18:55process that sets the CI the
1:18:57bond budget for the next 2
1:18:59years.
1:19:00>> And then the committee me.
1:19:04Follows up with individual
1:19:04project recommendations for
1:19:06there, too smaller portions of
1:19:08the cip behind budget, which
1:19:10is the capital maintenance
1:19:10project in the community or
1:19:11pose a process. This year was
1:19:15our community proposal process
1:19:17where we accepted applications
1:19:19from community members and
1:19:21reviewed those. also reviewed
1:19:23recommendations for changes to
1:19:24the 2027 budget. And startling
1:19:27that though, Our review this
1:19:33year. And then about for 27?
1:19:36We'll go forward to the
1:19:37department budget next year.
1:19:39So this just a really basic
1:19:41revenue. overview. Capital
1:19:46improvement. Bonds at the top
1:19:47are one of the top things that
1:19:48I spent time talking about.
1:19:49It's also a really small
1:19:50portion of our budget. But I
1:19:52was from this up because it's
1:19:55Horton, part of our budget.
1:19:56can what our most flexible
1:19:58funding sources and is the
1:19:59place where We are able to
1:20:01find. The important projects
1:20:04that are not. Otherwise for
1:20:08double for things like MSA or
1:20:09other funding sources. It is a
1:20:15publication. Van just is near
1:20:16was talking We also have other
1:20:20funding sources like I useful
1:20:21state aid and federal grants
1:20:23AIDS. You will notice most
1:20:25likely that there's a large
1:20:26group. There's large jump in
1:20:28the 2027 budget for federal
1:20:30grants and AIDS. This does
1:20:33have to do with increased
1:20:35funding planned in 27 for him.
1:20:39Federal projects, including
1:20:40Capital City. By way,
1:20:40programs. notice a
1:20:47corresponding drop in future
1:20:48years. So has to do with one
1:20:48face. This is chart of our
1:20:54overall revenue source is
1:20:55again, just taking a look at
1:20:56the blue capital improvement
1:20:57bonds at the top. only about
1:21:007.4 9% of the proposed budget.
1:21:04The other funding sources, the
1:21:05AG Committee spend a lot of
1:21:06time reviewing is project
1:21:07proposals for Cdbg. That's the
1:21:08other small portion there.
1:21:13We'll be right on to
1:21:14recommendations for the 2027
1:21:17proposed budget. line similar
1:21:18to the one that I showed you
1:21:19last year. It is the
1:21:22recommendations for cip fine
1:21:24projects for 2027. There are
1:21:25changes to the library budgets
1:21:26and there in part the seas. So
1:21:28last year the Cip committee
1:21:30approved Hayden Heights in
1:21:32Riverview transforming
1:21:33Libraries, projects. And then
1:21:36also additional funding to
1:21:37complete the Randolph Bridge
1:21:39Project, which was approved as
1:21:40part of the 2021. This year,
1:21:44they've approved a change to
1:21:45of 12.5 million dollars from
1:21:47Hayden Heights to Riverview.
1:21:48That was recommended by the
1:21:49library. The was able Secure
1:21:58outside funding of that amount
1:21:59and asked have the remaining
1:22:00funding moved Riverview.
1:22:03Riverview was the second
1:22:04highest priority project in
1:22:05the last year's process. It
1:22:05was. But only if It's just
1:22:13reminder. 2 budget only talk
1:22:15about 27 funding for the most
1:22:16part. That is because of the 5
1:22:17year plan that was adopted in
1:22:192021. took advantage of really
1:22:23favorable market. market rate.
1:22:26Really glad that that happened
1:22:27because you are able to
1:22:27prioritize those larger
1:22:28projects. But last year's
1:22:31process. And then my update to
1:22:33this only involves 27 funding.
1:22:34It has fewer projects as a
1:22:34result. This is the annual
1:22:40programs you can kind of see
1:22:42the 2025 budget as reference
1:22:45to what our annual programs
1:22:46have typically been. I've
1:22:48highlighted a few of these
1:22:49just for reference. We have
1:22:52started to phasing program for
1:22:52some of our high cost budget
1:22:54annual programs which need to
1:22:59be pulled before they can be
1:23:00spent. So really good example
1:23:01of that is $10,000 for
1:23:02railroad crossing
1:23:04improvements. It's not enough
1:23:06to fund a real and pressing
1:23:06improvement prayers and they
1:23:07are. and we are working to
1:23:12schedule those at the time
1:23:13frame when they'll be spent.
1:23:14We also it. Added back the
1:23:18children's play area
1:23:18improvements annual program
1:23:19last year and have the
1:23:20intention. All projects are in
1:23:24that that that the intention
1:23:24is that that will move
1:23:25forward. And then finally, I
1:23:27just highlighted the community
1:23:29proposals and citywide
1:23:30long-term capital maintenance
1:23:30close like to remind people
1:23:31that those are part of the
1:23:32same. Budget review process.
1:23:35This is the department
1:23:38projects of CA the bonds just
1:23:40reflecting that change of 2.5
1:23:41million.
1:23:43>> And on the
1:23:47>> 6.3 million, which is
1:23:47available in twenty-twenty to
1:23:48next year's process will be.
1:23:51>> For 28 29 with about. 6.3
1:23:53available per year. annual
1:23:57programs are from the same
1:23:58rate. If you're one of the
1:24:01community proposal process.
1:24:03proposals follow the same
1:24:05process is other cip budget
1:24:09Processees.
1:24:10>> Where in the committee
1:24:11recommends by June 30th to the
1:24:14mayor and then the mayor's
1:24:15proposed budget is a starting
1:24:17place that Council source
1:24:18with.
1:24:21>> This year was. year where
1:24:25we were definitely making.
1:24:28Priorities around improvement.
1:24:29I think we really benefited
1:24:30from the work that you did
1:24:32with Wilder and the audit
1:24:33committee.
1:24:34>> As we work to like both
1:24:38implement improvements for
1:24:39this year, but also prioritize
1:24:39improvements for next year and
1:24:40figure out how that. The
1:24:42things we did this year and
1:24:46change or influence what we
1:24:47will have our long-term
1:24:48planning. So improvement
1:24:50process improvements. This
1:24:51year, we're really centered
1:24:52around trying to improve the
1:24:53experience of applicants. We
1:24:56simplified the application
1:24:57greatly.
1:24:59>> And made.
1:25:04>> Moore difficult portions of
1:25:05our of our presentation of our
1:25:08process, such as our detailed
1:25:09application, our presentations
1:25:10to the council consumers. me a
1:25:12presentation to the committee
1:25:13members.
1:25:14>> Optional.
1:25:18>> We also greatly expanded
1:25:19the amount of communication
1:25:20and work that we're able to
1:25:22do. Eligibility Every
1:25:25applicant received
1:25:27personalized iformation about
1:25:27why their application was
1:25:30eligible or ineligible
1:25:31received opportunities to
1:25:31change their application order
1:25:33to make it eligible. If it
1:25:34were not. There i a really
1:25:39detailed process packet that
1:25:41you everything that we it
1:25:44review as well as all
1:25:44applications. It's linked
1:25:45online.
1:25:50>> Through.
1:25:56>> These are the proposals
1:25:57which recommended for funding
1:26:01>> we did receive applications
1:26:02from every. You pull double
1:26:06applications every ward, which
1:26:07was something that we were
1:26:08glad to see. We also received
1:26:10more. Unique applicants is
1:26:18someone individuals who
1:26:21submitted an individual
1:26:22application than we've ever
1:26:24seen. And more new applicants
1:26:25to the process. We high. And I
1:26:28hear
1:26:32I we piloted a video platform.
1:26:35We're trying to increase
1:26:36opportunities for folks who
1:26:37might not.
1:26:43Might not want to use that
1:26:46narrative platform not receive
1:26:48video submissions. However, we
1:26:49did see use of that platform
1:26:50is idea. Application, which
1:26:57was interesting in great.
1:26:59Actually, we're able to use
1:27:00that to really review some of
1:27:03the most complicated
1:27:03eligibility questions. So. The
1:27:11caveat that with all of this,
1:27:11though, is that the
1:27:13complicated nature eligibility
1:27:15around Cip bonds of this one
1:27:17funding source and the amount
1:27:20that there's a lot of eligible
1:27:21proposals and
1:27:24>> think thing that we really
1:27:27Come to terms with going
1:27:29forward. He's not a way for us
1:27:31to change legal requirements
1:27:32of that bond funding from way
1:27:34for me
1:27:36And I think that.
1:27:40That's always going to be
1:27:41issue, right? So. Things like
1:27:45things simple as just what
1:27:47road he sort of city road
1:27:49County road a state road
1:27:51really impact our ability to.
1:27:55what we can't fund projects
1:27:56that are not city roads, for
1:27:58example, right? And I think
1:28:00that that is not an
1:28:01expectation that I would
1:28:02recommend put on the public
1:28:04because I think it's difficult
1:28:05for me to understand, right?
1:28:06And that that's m job.
1:28:10Regardless. I think that that
1:28:12can be a really hard thing for
1:28:16an applicant to hear. I think
1:28:16it's a nice here like I don't
1:28:17value your proposal when It's
1:28:20not eligible. So I think that.
1:28:23I wanted to make sure that we
1:28:23call this out because
1:28:29>> because I think shows that
1:28:31we did make some some roads
1:28:32into making the ability to
1:28:33apply easier. they're
1:28:36sometimes intended
1:28:37consequence. Is that? This is
1:28:40similar to what we've the past
1:28:432 showing the breakout of
1:28:44eligible submissions proposed
1:28:45versus fnded. There is not. A
1:28:53requirement that poses b
1:28:54funded. Even And actually, I
1:28:57think with the amount of
1:28:58funding available, it's
1:28:58500,000 per year. This is just
1:29:01interesting. Finally. just
1:29:08looking forward going into
1:29:12next year. We will creating
1:29:14and distributing. Harry Uhl's
1:29:182 departments next year will
1:29:20be the department process that
1:29:23again determine the overall
1:29:24funding for maintenance and
1:29:25the as well as review
1:29:28department submitted proposals
1:29:30for the cip budget. We will
1:29:36also be doing next year.
1:29:37Capital maintenance and
1:29:37community development block
1:29:38Grant.
1:29:46>> Looking to my colleagues to
1:29:48see if there's any questions
1:29:48regarding CA be at this time.
1:29:52Council president, a thanks,
1:29:53Madam Chair. First of all, I
1:29:55just want thank you and the
1:29:56committee for your openness to
1:29:59the audit committee's
1:29:59recommendations really was
1:30:00great process to interact with
1:30:01the committee on that. And
1:30:01then seeing the way that the
1:30:03committee really took those
1:30:04recommendations seriously.
1:30:05sometimes we talk in the audit
1:30:06committee about our work only
1:30:06matters if it actually
1:30:09relevant to departments and if
1:30:10it's been acted upon by
1:30:11departments and clearly seeing
1:30:13that here, because I just want
1:30:14to say think we should also be
1:30:15open to if if it's more
1:30:19frustrating for applicants, if
1:30:20it's more time consuming for
1:30:21the committee and there's only
1:30:23$500,000 available for these
1:30:24community proposals. I think
1:30:25it's also worth just asking if
1:30:28this is the way that we want
1:30:28to continue. These are still
1:30:29only proposals for public land
1:30:34anyway. And I just want us to
1:30:35continue to be open to
1:30:36additional improvements. We
1:30:37don't want to be putting
1:30:37people through a process that
1:30:38is. Gonna be a lot of work for
1:30:42them. A lot of work for the
1:30:42committee and maybe not yield
1:30:43all that in the end, the
1:30:46question I had was back to the
1:30:47annual programs and side. 53
1:30:53grateful to see the way that
1:30:56we're combining yearly
1:30:58allotments into one lump sum
1:30:59because it's true that a lot
1:31:01of these projects cost more
1:31:02than the annual allocation
1:31:03that those dollars just sit
1:31:04there and don't get spent.
1:31:07wondering, though, if we can
1:31:07do that for for more on why
1:31:08we've chosen only lump sum the
1:31:11ones that we have. I'm
1:31:13wondering, are we fully
1:31:13spending down, for example,
1:31:16the outdoor court restoration
1:31:18program and the park's
1:31:19library, Capital Asset,
1:31:20revitalization of the
1:31:21pedestrian traffic safety
1:31:21program. Like are those
1:31:24$200,000 roughly buckets
1:31:24getting completely emptied,
1:31:27year-over-year or with those
1:31:28also be potentially good
1:31:28candidates for that that
1:31:30lumping together.
1:31:41don't cars. as a Knick.
1:31:44>> Great question. I think
1:31:47that we started with those
1:31:49because the existing process
1:31:50of just boarding the amount
1:31:51had existed long before I
1:31:52started here. So I sometimes
1:31:55think it change starting with
1:31:56the easiest is the best way to
1:31:58like support of that. The
1:32:03intention is to review that as
1:32:04part of review. All programs
1:32:06as part of the department
1:32:07process. Each. process and
1:32:11move ones that we can So we
1:32:15started with the most obvious
1:32:17and we'll continue to expand
1:32:19on that as much as we can
1:32:20because I think that. Is one
1:32:25of the funding is there and
1:32:25the can rely on that. I think
1:32:26there's no. It's only It.
1:32:35>> And Michelle, I just chime
1:32:36in I think is a be really
1:32:37helpful to see where we are.
1:32:41Those investments of happened
1:32:42for years, which we do have
1:32:42budget to actual reporting
1:32:44back around where they've
1:32:46actually been expended or not.
1:32:47And if that requires a check
1:32:48in with the departments to be
1:32:51able to do that, I think that
1:32:52would be a perfect
1:32:53opportunity, especially as we
1:32:54head with the final and go
1:32:56into departments. There are
1:32:58several projects on this
1:33:01department lists that I can
1:33:01think comes to mind now that
1:33:02are more relevant
1:33:03conversations, then when the
1:33:04committee would ever be of
1:33:06this. And so just being able
1:33:08to also hear like what
1:33:09resources we have available
1:33:11that could potentially respond
1:33:11to the more imminent need of
1:33:14some of our projects that most
1:33:15likely will be department's
1:33:16request next year. But also in
1:33:19general that are probably mean
1:33:19that we're not part of this
1:33:21discussion. sample, closer
1:33:26look in which is a part of the
1:33:28discussion, but maybe not to
1:33:29the level of which has now
1:33:31been discussed as a potential
1:33:32closer for next year. It would
1:33:33be really helpful to
1:33:34understand just like. Here's
1:33:37what allocated in 2025. 2026.
1:33:39Here is what we have as far as
1:33:41the knowledge of what has been
1:33:42spent to date noting that some
1:33:45of these are million dollar
1:33:47investments, others a little
1:33:48bit smaller. It might be
1:33:50easier to get that update from
1:33:52departments as smaller dollar
1:33:52amount.
1:33:53>> And I own. Do have the
1:33:58status update. We're
1:33:59finalizing that it will be
1:34:00something that is the
1:34:00follow-up document last year
1:34:04was the first year that weeds
1:34:06and then a few years, it's
1:34:06giant documents of the like.
1:34:08For tonight's and has some of
1:34:11the the things I copied and
1:34:12pasted into. You can just do
1:34:13it. But I always wanted to
1:34:15make guy that you mentioned
1:34:15that because I think it's
1:34:17helpful to know that I'm
1:34:18available to U.S.. through
1:34:22that if that's helpful,
1:34:22because I think that that's
1:34:26that's something that I do
1:34:27with the committee and
1:34:28departments. it's a large
1:34:30document that will be sending
1:34:30that as Really appreciate
1:34:34Thanks.
1:34:36>> And thank you for your
1:34:36work. We don't always get to
1:34:41to say that out So appreciate
1:34:43time that you and the
1:34:43committee are taking for this.
1:34:49>> Welcome back to Think you
1:34:51just have I'm going to wrap
1:34:51this up with summary of
1:34:52general government accounts
1:34:56for the purposes time. I'm
1:34:56going to speak to the accounts
1:34:57that are changing
1:34:58>> but hope that interest that
1:35:02we are here to respond to all
1:35:05the accounts that are listed
1:35:06that will have no changes. But
1:35:07we're happy to talk about
1:35:09them.
1:35:09>> To the extent the
1:35:11committee, which is an
1:35:12attorney when the just before
1:35:13you dive i general government
1:35:17accounts we asked him to
1:35:18present on this because
1:35:18multiple millions in the
1:35:19budget itself over on. It
1:35:20doesn't always get talked
1:35:21about.
1:35:22>> And so appreciated the team
1:35:23being able to add a little bit
1:35:26more context behind the
1:35:27expenditures are captured in
1:35:28here because it's actually
1:35:29quite a bit and general
1:35:30government and it accounts for
1:35:31the change is, as you may have
1:35:33noted, TV's budget now
1:35:35includes district councils,
1:35:35which is a large part of the
1:35:39which ws several million
1:35:39within hear that now has a
1:35:40kind of form peas budget. So
1:35:44there's a few things that are
1:35:45and hear from Thank you. Chair
1:35:46got to exactly a point.
1:35:49>> So general government
1:35:50counts are very interesting.
1:35:51way to have the city, the
1:35:53flex. So you want and
1:35:55obligations that aen't
1:35:57necessarily assigned to a
1:35:57specific department. But her
1:35:58anyways. I'll begin here first
1:36:02on the major general fund
1:36:03revenue accounts that exists.
1:36:06These just reflect
1:36:08clearinghouse of the major
1:36:09source of property tax revenue
1:36:09that the city receives the
1:36:12first change, expenditures out
1:36:13of this account for flex
1:36:15information you've heard of
1:36:16today regarding the sum total
1:36:18of the franchise fee revenue
1:36:21which in the proposed budget
1:36:23is 2.7 in the supplemental
1:36:24Budget request is 3 Million. I
1:36:27want to get ahead of any
1:36:27confusion of that number from
1:36:31the supplemental number exist
1:36:32only because it happened in 2
1:36:34sequences, but largely
1:36:35speaking that the details stay
1:36:38the same here. There's the
1:36:39transfer, the revenue for
1:36:39climate initiatives into this
1:36:40account for expenditure
1:36:41purposes in the transfer of
1:36:44the property tax levy that I
1:36:46presented earlier for deferred
1:36:47maintenance. Again on the
1:36:50revenue side. This just
1:36:51reflects the sum total of the
1:36:52proposed budget property tax
1:36:54increase the franchise. He
1:36:56would action as well. one-time
1:37:00star for gneral fund Capital
1:37:01City projects which you just
1:37:03heard about and inclusion of
1:37:04the fire insurance premium
1:37:05surcharge. There are 2 changes
1:37:10on the slide related to a
1:37:12topic of community and civic
1:37:13engagement. One is related to
1:37:14the charter Commission. This
1:37:15this is a place holder
1:37:18necessary to fund the work of
1:37:19the charter Commission.
1:37:20Shouldn't meet. I think a good
1:37:21example of that would be if
1:37:22there's an administrative
1:37:24citations pipe charter
1:37:25amendment, it is good to have
1:37:27these resources set aside so
1:37:28that the charter commission
1:37:28can do the work that set forth
1:37:31along the nominal amount
1:37:32increases just a a built in
1:37:35internal service increase to
1:37:36the underlying count. The
1:37:39Civic Organization program, a
1:37:42flex change down to update a
1:37:43contractor removal of one time
1:37:44cost from the Southern
1:37:45Minnesota Regional Law Center.
1:37:51On the slide You've mentioned
1:37:52from the jump. The only chip,
1:37:54there's the Cip committee
1:37:55committee per diem that a
1:37:56stink static. But the change.
1:37:58>> And the proposed budget is
1:37:59the transition from the
1:38:01District Community Council
1:38:03funding from general cover
1:38:04account to PD. On the slide is
1:38:09a bucket of a legal and risk
1:38:12management. General government
1:38:13accounts, including outside
1:38:13counsel, which is unchanged,
1:38:14tort liability, which is
1:38:15unchanged. Tim, in a miss. But
1:38:22relatively a high increase for
1:38:23the workers comp a small
1:38:25offices claim this just a
1:38:25signs of fee and a funding
1:38:28source for smaller departments
1:38:30that don't have their own
1:38:31workers. Comp budgets. And
1:38:34there are no changes to tort
1:38:35claims or premiums. This slide
1:38:42for total general government
1:38:44Accounts. Council publications
1:38:46is unchanged. The payments for
1:38:47to read county for the
1:38:48administration of Elections
1:38:50and Change. It is Bill
1:38:54membership amount unchanged.
1:38:55But for the transfer of the
1:38:55Saint Paul Children's
1:38:57Collaborative from the HRA
1:38:59included here and last but not
1:39:01least that there is a change
1:39:02for the contingent reserves
1:39:03which reflects an
1:39:03appropriation less to account
1:39:07for the removal of one-time
1:39:07funding for the market
1:39:08compensation study.
1:39:13>> On the slide, there are up
1:39:14to 4 more general government
1:39:16counts financial printing
1:39:20change the state auditor fees
1:39:21to conduct the annual audit
1:39:24are unchanged.
1:39:25>> And the HRA audit occurs
1:39:27and is financed out of the HRA
1:39:28General Fund. So trust that
1:39:32both bodies are audited and
1:39:32both bodies, the City General
1:39:33fund and the HRA funds account
1:39:34for those cost respectively.
1:39:40There is an inclusion for
1:39:40employee transit passes into
1:39:41the council parking contracts
1:39:42that is unchanged in the only
1:39:45change left is regarding the
1:39:47city Hall building made its
1:39:49share, which is an annual
1:39:51update for the rent that is
1:39:53coming online for us for 3.70,
1:40:01to it related accounts. One s
1:40:01for innovations technology. It
1:40:04should reflecting the general
1:40:05fund chair of the citywide
1:40:06charge for this purpose,
1:40:08increasing. The second is an
1:40:11inflationary cost of hardwired
1:40:12software used by city
1:40:12employees for their various
1:40:13park stations. 2 more
1:40:19technology component here.
1:40:19There inflationary costs
1:40:24further specified for
1:40:24enterprise technology, for
1:40:25that hardware and software
1:40:27components. And there is
1:40:29change to the innovations
1:40:31technology fund that reflect
1:40:32the removal of one-time
1:40:32funding for Poly.
1:40:35>> The facilities management
1:40:36study and various other items.
1:40:38It includes a proposal to add
1:40:40in for Michael implementation
1:40:41in for a virtual sea. So and a
1:40:44grant management software and
1:40:47the virtual sea. So peas I go.
1:40:48TCU still yet to come before
1:40:49you and I trust that they will
1:40:49present to you their proposal,
1:40:53the 27 budget to feel that
1:40:54it's a scary component. Jerry
1:41:01Jones and the slide shows 3
1:41:02employee benefit accounts.
1:41:05There's employee insurance for
1:41:07indirect French cost, which
1:41:08are later allocated to
1:41:08departments.
1:41:11>> change retire. Insurance is
1:41:13changing to anticipate the
1:41:14increase in fire in police
1:41:16disability insurance payments
1:41:18and the like a pair Detroit
1:41:20pension amount is unchanged
1:41:20from the prior year.
1:41:26>> Charges in site includes 3
1:41:29other general fund obligation
1:41:30type of account. The first is
1:41:32a transfer to the Capital
1:41:33improvement budget to support
1:41:35project design public that is
1:41:37unchanged. There is an
1:41:38increase of $100,000 annually
1:41:39to keep up with the growing
1:41:41cross to the public safety
1:41:42vehicles in the public safety
1:41:43fleet support account. And
1:41:45there is a increase in the
1:41:49downtown improvement district
1:41:51assessment cost of properties.
1:41:51The city HRA Public Housing
1:41:56Authority in River Center
1:41:57owned that are within the
1:41:57district that the city General
1:41:59fund count for to receive that
1:42:01services. A bat distric.
1:42:07Churches and other general
1:42:08fund obligations include the
1:42:09Energy Loan program Repayment,
1:42:11which is just an annual update
1:42:12for the Green Energy loan
1:42:13financing. Schedule. And there
1:42:16is an unchanged account
1:42:17related to the groundwater
1:42:19monitoring and a former city
1:42:20hall, a city landfill that is
1:42:21performed by the Mpca. This
1:42:28lie just reflects the sun
1:42:28setting of the American rescue
1:42:32plan, financing.
1:42:33>> Just abiding by the federal
1:42:34government guidelines that
1:42:35mandate up funds must be spent
1:42:36by the end of 2026.
1:42:43>> Johnson included on this
1:42:44slide are to a count. One is
1:42:46the
1:42:46>> opioid settlement, which
1:42:47includes the change in the 26
1:42:50adopted budget to allocate
1:42:521 million dollars for fentanyl
1:42:56response. There is also that
1:42:56is unchanged to be proposed in
1:42:572017. For the record and then
1:43:02the public safety, 8 side of
1:43:04things. These are the planned
1:43:06productions of the transition
1:43:07removal of 3 fire captains.
1:43:08When Ian and shipping of and
1:43:12that's positions to the public
1:43:13account. In the public to
1:43:17count is based a 2026 spending
1:43:21estimates. Changes on the site
1:43:27include changes to general
1:43:28government services, either
1:43:29cost originally funded with
1:43:31therapy resources. There's
1:43:33some throughput with the
1:43:33beginning of presentation for
1:43:36this account on the accounting
1:43:38side. The original proposal to
1:43:41request an additional general
1:43:43fund appropriation is because
1:43:45of this one-time accountant
1:43:46position being offset by the
1:43:49some said New York, the
1:43:49expenses. So that's where the
1:43:50match is occurring. And then
1:43:53lastly on the slide, there is
1:43:54a change to work. Now. This is
1:43:56the removal of one-time
1:43:57funding for letting us work
1:43:57now. Program.
1:44:02>> Churches and that concludes
1:44:03the walk-through of the
1:44:03general government accounts.
1:44:06I'm happy to answer questions
1:44:06about any of them. They may
1:44:09require specific staff
1:44:10follow-up based off of their
1:44:10expertise. But I'm happy to
1:44:11refer you to right way.
1:44:15>> Thank yu, Director Jaime.
1:44:17I know it to me because in the
1:44:18room and I do believe made a
1:44:18specific west requests for
1:44:19mayor's office, representative
1:44:21to be able to talk about the
1:44:22opioid settlement are the
1:44:25bigger. Could you speak to the
1:44:26progress F at all of the
1:44:291 million dollar allocation.
1:44:30That's something that's been
1:44:30on the budget for years for
1:44:33for a few years now. We're
1:44:34just wondering what's the
1:44:35update around the? Million
1:44:36dollar that is there?
1:44:40>> Yeah, first of all, thank
1:44:41you for the invitation Chair
1:44:42Johnson members of the
1:44:44committee as it relates to the
1:44:46opiate settlement funding of
1:44:47the million dollars. As you
1:44:48all know, we inherited funding
1:44:50from the last administration
1:44:53and we've had a few
1:44:56conversations with customer,
1:44:58but we think maybe men could
1:44:59okay has taken so we are
1:45:03really trying to focus on 2
1:45:05areas. The first area is we
1:45:06believe that those funds based
1:45:09on the appropriate use makes
1:45:11more sense to be supporting
1:45:13areas such familiar face is
1:45:16work with the Office of
1:45:17Neighborhood Safety. So that's
1:45:18one of the areas. But we also
1:45:22wanted to make sure that we
1:45:23leave room and opportunity to
1:45:24work with Ramsey County on
1:45:26some innovative ways of
1:45:29supporting overall response
1:45:30for these dollars in
1:45:33allocation o the funds. And
1:45:34so we've had conversations
1:45:35where Ramsey County initially
1:45:39we thought that we get
1:45:41involved with and we
1:45:47>> written on body settings.
1:45:49So council, president maker
1:45:53what can Ramsey County
1:45:55concerning some work wits
1:45:57about
1:45:58>> And how do we use that to
1:46:02support individuals that need
1:46:03that type support.
1:46:05>> In our community, what we
1:46:09found out is in our
1:46:10conversations wth county that
1:46:11the county is really they
1:46:15think that aligns with wrk
1:46:17that they want to with its
1:46:19about homework and so were
1:46:19help. We're grateful that
1:46:23they're picking up some of
1:46:23that work so and that gives us
1:46:24an opportunity to do a few
1:46:27other things when it comes the
1:46:29opioid funded within the
1:46:31community. So right now we
1:46:31still believe that it is a
1:46:32place to support. I work with
1:46:36Ramsey County ad then also
1:46:39specifically when role in this
1:46:42for for familiar faces us.
1:46:44>> So those are the 2 areas
1:46:45right now where we see that
1:46:47million dollars I'm going
1:46:48towards within this next year.
1:46:53>> And then as it relates to
1:46:54that, do you anticipate thank
1:46:57some sort allocation or pick
1:46:59out of the allocation by the
1:47:00end of the year prior to the
1:47:01approval of the next thank
1:47:03budget. We can do without the
1:47:05really helpful council.
1:47:07President maker. Thank you,
1:47:07Madam Chair of us, Mayor
1:47:09Baker, this isn't an ongoing
1:47:10conversation to this is not
1:47:10that start with your
1:47:13administration, but
1:47:14>> given that both the county
1:47:15and the city received these
1:47:15opioid settlement dollars. And
1:47:16to your point, we've had at
1:47:19the side of collaboration with
1:47:20them and back zone program,
1:47:21the bridge clinic, every just
1:47:22feel that they've agreed to
1:47:23fully fund is really exciting.
1:47:26Builds on work becomes member.
1:47:27Kevin, I started on this body
1:47:29a while ago with artifacts and
1:47:31paramedic program. But we
1:47:32haven't yet gotten to the
1:47:33point of real integration with
1:47:35the city and the county on
1:47:36opioid settlement dollars. And
1:47:37it seems to me that. Pulling
1:47:40those dollars together and
1:47:41having one cordinated
1:47:42strategy knowing that most of
1:47:44the attention work that the
1:47:45county is doing is taking
1:47:46place in the city of Saint
1:47:47Paul. just makes so much more
1:47:49sense to me. So to the chair's
1:47:50question, I would love to see
1:47:53the proposal for 2027
1:47:54itemized, but but also to
1:47:54understand. How we're working
1:47:58with Ramsey County and
1:47:59ideally, how they're planning
1:48:01to spend their opioid dollars
1:48:01in 2027 so that we can be if
1:48:02we're not already. Creating
1:48:06one coherent strategy, we can
1:48:07at least make our decisions
1:48:08about the budget knowing what
1:48:10they plan to do with their
1:48:13through the Ithink the first
1:48:16of all, yes, we can. I think
1:48:17that we can do I don't think
1:48:18there's an issue, a problem of
1:48:19being ale to just go and
1:48:20forecasts have a conversation
1:48:21with the county.
1:48:23>> About what they're planning
1:48:24to do. Also talk about what
1:48:25plan to do.
1:48:27>> I think that it is still
1:48:29conversation about what that
1:48:30partnership needs to look
1:48:31like. What it should look
1:48:33like.
1:48:34>> I think that we've been in
1:48:35situations where we better
1:48:36understood what they are
1:48:37doing. So great example was
1:48:38around the work in customer to
1:48:39do with it. That's about work
1:48:44when we get deeper into i, in
1:48:46better understanding, we found
1:48:46out they would like to take a
1:48:47little bit of a different
1:48:48lane, which we're grateful for
1:48:48in the lane that they're
1:48:50taking. But it's just those
1:48:52types of conversations that
1:48:55we're ever right now to better
1:48:56understand like what are you
1:48:56actually doing? What do you
1:48:57feel like this fits in your
1:48:58overall body of work? And so I
1:49:00think that there is just a few
1:49:01more conversations that
1:49:02probably really need to be
1:49:02between both of us to be able
1:49:06to come back to you with that
1:49:07type of information that I
1:49:07feel I would be helpful as you
1:49:09are making decisions.
1:49:12>> Thank you, Sir. Sidney,
1:49:13bigger. Thank
1:49:17>> Accounts from think it's
1:49:21one at a time and also to
1:49:21Houston area. And I appreciate
1:49:22conversation had no with this
1:49:25item mall. Last year we put a
1:49:29budget amendment.
1:49:30>> Attached to the reporting.
1:49:31And you know, that our
1:49:32leverage to particularly have
1:49:34these ongoing conversations. I
1:49:35really want to be. In a
1:49:40position next year. We see
1:49:41something more coordinated
1:49:44Ross apartment and like
1:49:44Council president, a Kurd said
1:49:48not only collaboration with
1:49:52county but really expanding
1:49:53who are community partner.
1:49:53This look like and also
1:49:54particularly looking around.
1:49:55>> Who's doing things more?
1:49:58Innovative Lee and what are we
1:50:02missing? What are we were
1:50:02there gets particularly when
1:50:03it comes to this particular
1:50:04community. I know particularly
1:50:08I keep saying particularly but
1:50:09I'm on Delhi University, which
1:50:12is a hot for Ward line where
1:50:13see we see the issues and the
1:50:17challenges struggles with
1:50:19sheltered communities. But our
1:50:19communities suffering
1:50:22substance abuse where there is
1:50:23not any treatments in us. then
1:50:25I will also encourage us to
1:50:27talk with some of those
1:50:27district councils. I by word
1:50:29there was odd it where they
1:50:31choose. caught through all the
1:50:36different shelters. They
1:50:36caught through all the
1:50:38different treatment centers
1:50:39and wasn't I was referred to
1:50:40every everybody else could not
1:50:44find some way. It took them 40
1:50:47over 48 hours to be able to
1:50:47find shelter beds treatments
1:50:49and they're so I want to see
1:50:53ongoing collaboration with
1:50:55that. I just have question to
1:50:56that number. Getting ready,
1:50:57packed up and done here. But
1:51:00for it might be for that is
1:51:02because well, for the work now
1:51:03program, this was something
1:51:05that council put in the budget
1:51:06from last year. So seeing
1:51:10that, there's that the polls
1:51:11for 2027. Does that mean that
1:51:14money is spent this year are
1:51:16issues not being allocated
1:51:19right over to next chair got
1:51:23Councilmember Bowie We can get
1:51:24back to you on the budget to
1:51:26actuals for the specific out.
1:51:27But it is my understanding
1:51:27that the original
1:51:29appropriation council made
1:51:30with one-time in nature for
1:51:31the 26 budget, which is why it
1:51:31just automatically removed.
1:51:32>> Thank you.
1:51:36>> Well, thank you guys so
1:51:38much for getting through the
1:51:40presentations. I think that's
1:51:42a job well Thank you to the
1:51:43Office Financial Services your
1:51:43presentation and being able to
1:51:45give so much content on Times
1:51:46as concerns that we had and
1:51:49hearing to the fact that we've
1:51:50got terrific. So.
1:51:52>> Hey, look at prove
1:51:56>> With that, we are
1:51:56adjourned.