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CHAIR RICK SODI HERE WE HAVE[CALL TO ORDER]
A QUORUM.UH, CAN WE HAVE THE FIRST AGENDA ITEM, PLEASE? ITEM ONE IS A RECOMMENDATION TO APPROVE THE MINUTES FOR THE BUDGET OVERSIGHT COMMITTEE MEETING OF
[ROLL CALL]
TUESDAY, AUGUST 6TH, SIXTH 2024.[1. 24-54472 Recommendation to approve the minutes for the Budget Oversight Committee meeting of Tuesday, August 6, 2024. Suggested Action: Approve recommendation. ]
HAVE A FIRST AND A SECOND.UM, ANY QUESTIONS OR MODIFICATIONS FROM MY COUNCIL COLLEAGUES? SEEING NONE, UM, WE CAN TAKE PUBLIC COMMENT.
IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME TO THE PODIUM NOW.
UH, THEN WE CAN GO AHEAD AND VOTE.
ITEM TWO IS A RECOMMENDATION TO RECEIVE AND FILE AN UPDATE OF THE GENERAL FUND REVENUES INCLUSIVE OF PROPERTY TAX, SALES, UTILITY, USER TAX, TRANSIENT OCCUPANCY TAX, AND CANNABIS.
[2. 24-54474 Recommendation to receive and file an update and overview of the General Fund revenues, inclusive of property tax, sales, utility user tax (UUT), transient occupancy tax (TOT), and cannabis. Suggested Action: Approve recommendation. ]
OH, I JUST NEED A SEC.I BELIEVE WE HAVE A STAFF REPORT.
TODAY WE HAVE GERALDINE ALEJO REVENUE MANAGEMENT OFFICER HERE TO PRESENT THE PRESENTATION.
GOOD AFTERNOON CHAIR AND MEMBERS OF THE BUDGET OVERSIGHT COMMITTEE.
TODAY WE WILL BE PROVIDING A HIGH LEVEL OVERVIEW ON PROPERTY TAX SALES AND USE UTILITY USERS TAX, TRANSIENT OCCUPANCY AND CANNABIS TAX REVENUES.
STARTING WITH AN OVERVIEW OF GENERAL FUND REVENUES, REVENUES ARE TYPICALLY UNRESTRICTED IN THEIR USE AND PREDOMINANTLY DERIVED FROM LOCAL TAXES.
IN FISCAL YEAR 25, TAX REVENUES MAKE UP ABOUT 70% OF TOTAL REVENUE OF THIS AMOUNT, PROPERTY TAX, SALES TAX, INCLUDING MEASURE A PROPERTY TAX IN LIEU OF VEHICLE LICENSE FEES AND UTILITY USERS TAX ACCOUNT FOR 63% OF THE GENERAL FUND GROUP REVENUE.
AS PART OF THE FY 24 BUDGET, GENERAL FUND REVENUES WERE ADJUSTED TO ALIGN WITH REASONABLY EXPECTED PERFORMANCE AND REMOVE PANDEMIC IMPACTS FROM FORECAST ASSUMPTIONS.
THIS RESULTED IN A SIGNIFICANT REVENUE RECALIBRATION AS OF FY 24 MIDYEAR.
THE OVERALL REVENUE OUTLOOK GENERALLY CONTINUES TO BE POSITIVE ACROSS SEVERAL KEY SOURCES.
THE GENERAL FUND OUTLOOK FOR FY 25 INCORPORATES FISCAL YEAR 24 PERFORMANCE AND IS BASED ON THE MOST RECENT DATA AVAILABLE AS OF BUDGET DEVELOPMENT.
SO THIS IS AS OF EACH SPRING, AS IS ALWAYS THE CASE WITH PROJECTIONS, THE OUTLOOK WILL CHANGE OVER TIME AS MORE INFORMATION BECOMES KNOWN.
FINALLY, WHILE GENERAL FUND REVENUE HAS EXPERIENCED GROWTH, IT REMAINS CONSTRAINED BY THE NATURAL RATE OF YEAR OVER YEAR GROWTH.
HISTORICALLY, THE BASE TAX REVENUE INCREASES NOT INCLUDING UNUSUAL ONE-TIME GAINS OR LOSSES HAS DIFFICULTY OFFSETTING GROWTH IN THE CITY'S COST.
FIRST, PROPERTY TAX PROPERTY IS VALUED BY THE COUNTY ASSESSOR AND TAXED AT A 1% RATE OF ASSESSED VALUATION PASSED BY VOTERS IN 1978.
PROPOSITION 13 LIMITS A PROPERTY TAX RATE AT 1% OF FULL CASH VALUE AND ANNUAL VALUE INCREASES TO NO MORE THAN THE RATE OF INFLATION OR 2%, WHICHEVER IS LESS.
EXCEPTIONS TO THESE LIMITS ARE WHEN PROPERTIES ARE REASSESSED UPON CHANGE OF OWNERSHIP OR NEW CONSTRUCTION.
THE PIE CHART HERE ILLUSTRATES THE ALLOCATION TO EACH TAXING.
AGENCY ALLOCATION TO EACH TAXING AGENCY IS BASED ON WHAT IS CALLED THE A B EIGHT ALLOCATION SYSTEM, WHICH WAS IMPLEMENTED SHORTLY AFTER PROPOSITION 13, AND BASED ON EACH TAXING AGENCY'S SHARE OF PROPERTY TAX PRIOR TO PROP 13 ADOPTION, HISTORICALLY, THE CITY HAS RECEIVED BETWEEN 21 TO 22%, AND IN FISCAL YEAR 25, THE CITY IS ANTICIPATED TO RECEIVE 22%.
THE REMAINING PORTION GOES TO A LONG BEACH UNIFIED SCHOOL DISTRICT, LONG BEACH COMMUNITY COLLEGE DISTRICT, THE COUNTY.
THIS ALSO INCLUDES THE EDUCATIONAL AUGMENTATION FUND, WHICH WAS IMPLEMENTED IN THE NINETIES WHEN PROPERTY TAX DOLLARS WERE SHIFTED FROM LOCAL GOVERNMENT TO SCHOOLS.
THERE ARE THREE MAJOR PROPERTY TAX ROLL CATEGORIES INCLUDED IN OUR REVENUE.
WE HAVE SECURED, THAT'S LAND AND IMPROVEMENTS, BUILDINGS, HOMES, UNSECURED, SO THIS IS PROPERTY SUCH AS MACHINERY, AIRCRAFT, BOATS.
AND FINALLY THERE IS, THERE ARE UTILITIES.
SO UNLIKE THE OTHER TAX RULES, THESE PROPERTY TYPES THAT ARE OWNED BY UTILITIES OR RAILROADS ARE ASSESSED BY THE BOARD OF EQUALIZATION.
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REVENUE FROM EVENTS AFTER THE CLOSE OF THE TAX RULE AND TYPICALLY ARE ONE TIME IN NATURE.THIS IS SUPPLEMENTAL RULE CORRECTIONS, TAXPAYER REFUNDS, AND DELINQUENT PAYMENTS.
FURTHER, IT SHOULD BE NOTED THAT ANY REVENUES RECEIVED FROM FORMER REDEVELOPMENT AGENCIES OR RDA MUST FIRST BE USED TO FUND FORMER RDA OBLIGATIONS LIKE DEBT SERVICE.
AS ILLUSTRATED IN THE TABLE ABOVE THE CITY'S PROPERTY, TAX REVENUE HAS EXPERIENCED STEADY GROWTH IN RECENT YEARS.
DESPITE INITIAL UNCERTAINTY ABOUT THE PANDEMIC IMPACTS.
THIS REVENUE GROWTH IS ALSO SUPPORTED BY A RECENT AUDIT PERFORMED BY OUR CITY AUDITOR'S OFFICE, WHICH FOUND THAT GENERAL FUND PROPERTY TAX REVENUE HAS BEEN GROWING APPROXIMATELY AT THE SAME RATE AS THE INCREASES IN OUR PROPERTY ASSESSED VALUATION.
THE FISCAL YEAR 25 FORECAST IS BASED ON THE MOST UPDATED INFORMATION AVAILABLE.
SO FOR THIS YEAR, IT'S BASED ON ASSESSED VALUATIONS COVERING 2022 CALENDAR YEAR SALES AND OTHER VALUES SET BY THE ASSESSOR.
AS OF JANUARY 1ST, 2023, BASED ON THIS, IT IS ANTICIPATED THAT OVERALL PROPERTY TAX WILL GROW BY 7% FROM FISCAL YEAR 24 ESTIMATES WITH SECURED AND UNSECURED INCREASING BY 6%.
THIS ASSUMES THE CONTINUED APPLICATION OF THE 2% INFLATIONARY FACTOR AND THE RECENTLY RELEASED PRELIMINARY ASSESSED VALUATION DATA AS OF JANUARY 1ST, 2024, INDICATING A 5% INCREASE FOR THE GENERAL FUND TAX AREA, PLUS NEW DEVELOPMENT AND ALSO A MAINTAINED LEVEL OF PROPERTY SALES.
FORMER RDA AREAS ARE ANTICIPATED TO INCREASE BY 10% FROM FY 24 ESTIMATES, AND THIS INCLUDES A DECREASE IN FORMER RDA OBLIGATIONS, WHICH THEN RESULTS IN HIGHER NET TAX REVENUE TO THE GENERAL FUND.
FINALLY, IT SHOULD BE NOTED THAT THE CITY REVENUE FROM PROPERTY TAX IN LIEU OF VEHICLE LICENSE FEES, ALSO KNOWN AS PROPERTY TAX IN LIEU OF VLF, ARE ALSO I IMPACTED BY SIMILAR ASSUMPTIONS.
PROPERTY TAX IN LIEU OF VLF IS ESTIMATED AT 72 MILLION FOR FISCAL YEAR 25, AND IS A RESULT OF A 2004 REVENUE SWAP BETWEEN PROPERTY TAX AND VEHICLE LICENSE FEES.
AT THAT TIME, THE STATE VLF RATE WAS REDUCED, BUT REPLACED WITH LIKE AMOUNT OF PROPERTY TAX.
FOLLOWING THIS SWAP, THE REVENUE SOURCE WILL INCREASE IN PROPORTION TO THE GROWTH IN ASSESS VALUATION FOR THE JURISDICTION.
MOVING ON TO SALES AND USE TAX, THE TABLE HERE SHOWS THE BREAKDOWN OF THE CITY'S CURRENT SALES TAX RATE.
THIS INCLUDES A CITY'S MEASURE.
THE CITY GENERALLY RECEIVES 1% OF THE TOTAL RATE CALLED BRADLEY BURNS AND 0.75 FOR MEASURE A.
THE REMAINING 8.5% IS USED FOR STATEWIDE AND COUNTY PURPOSES LIKE TRANSIT AND MEASURE H FOR HOMELESSNESS, AS WELL AS THE PUBLIC SAFETY AUGMENTATION FUND, WHICH IS HALF A HALF A CENT SALES TAX IMPLEMENTED IN THE EARLY NINETIES AND DEDICATED TO LOCAL PUBLIC SAFETY FOR THE CITY.
THE POLICE DEPARTMENT IS ANTICIPATED TO RECEIVE ABOUT 7 MILLION IN FISCAL YEAR 25, BOTH FISCAL YEAR 24, AND THE FY 25 PROJECTIONS ARE BASED ON THE MOST CURRENT DATA AVAILABLE COVERING CALENDAR YEAR 2023.
AS EXPERIENCED BY YEAR END FISCAL YEAR 23, TRENDS ARE INDICATING A SLOWED OR DECLINING PERFORMANCE IN GENERAL CONSUMER GOODS AND AUTOS AND TRANSPORTATION.
THIS SLOW DOWN IN TAXABLE RECEIPTS IS NOT UNIQUE TO THE CITY OF LONG BEACH, WHERE OTHER JURISDICTIONS ARE ALSO EXPERIENCING SIMILAR ISSUES WITH DRIVERS, INCLUDING INCREASED FINANCING RATES AND A SHIFT IN CONSUMER BEHAVIOR TOWARDS OTHER PURCHASES LIKE TRAVEL AND SERVICES.
FURTHER, FOR BRADLEY BURNS, THE CITY SHARE OF THE COUNTYWIDE POOL HAS DECREASED.
THE COUNTYWIDE POOL INCLUDES ONLINE SALES, WHICH DID SEE AN UPTICK DURING THE PANDEMIC, BUT HAS SINCE SLOWED.
THIS REVENUE IS PULLED BY THE COUNTY AND THEN ALLOCATED TO EACH JURISDICTION BASED ON ITS SHARE OF TAXABLE RECEIPTS FOR THE CITY, OUR TAXABLE RECEIPTS, AND THEREFORE OUR SHARE HOVERS AROUND 4%.
DESPITE SLOWED GROWTH IN THESE AREAS, THE CONT THE CITY CONTINUES TO BENEFIT IN OTHERS, INCLUDING SALES TAX REVENUE GENERATED BY LOCATION AGREEMENTS ESTABLISHED BY THE CITY COUNCIL IN FISCAL YEAR 25 AND THE OUT YEARS.
FOR BOTH BRADLEY BURNS AND MEASURE A, WE ARE ANTICIPATING A 3% GROWTH EACH YEAR.
NET NEXT TRANSIENT OCCUPANCY TAX, ALSO KNOWN AS TOT, THE CITY'S CURRENT TOT RATE IS 13%
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AND IS ASSESSED TO GUESTS OF TEMPORARY LODGING LIKE HOTELS, MOTELS, AND SHORT-TERM RENTALS.THE RATE IS APPLIED TO THE COST TO RENT THE LODGING AND IS PAID BY PAID FOR BY GUEST.
THE COMPONENTS OF THE TOTAL RATE IS 6% TO THE SPECIAL ADVERTISING AND PROMOTIONS FUND, ALSO KNOWN AS SAP, WHERE REVENUE IS USED FOR ADVERTISING PROMOTIONS, SPECIAL EVENTS THAT CALL POSITIVE ATTENTION TO THE CITY, AND THEN 7% TO THE GENERAL FUND OF THIS AMOUNT, 6% IS USED FOR GENERAL PURPOSES, AND THEN 1% IS THE MEASURE B RATE AND INTENDED TO PROVIDE FUNDING FOR ARTS IN THE COMMUNITY AND THE CONVENTION CENTER.
THIS SLIDE HERE WILL FOCUS SOLELY ON THE NON MEASURE BTOT REVENUES.
HOWEVER, IT SHOULD BE NOTED THAT THE TRENDS, UH, COVERED TODAY ALSO IMPACT REVENUES TO SAP AS WELL AS MEASURE B.
HISTORICALLY, LONG BEACH TOT HAS BEEN A VOLATILE REVENUE SOURCE AND DEPENDENT ON MANY FACTORS, INCLUDING BUSINESS AND CONVENTION TRAVEL.
TOT WAS SIGNIFICANTLY IMPACTED BY THE PANDEMIC DURING FISCAL YEARS 20 AND 21.
OTHER REVENUE SOURCES WERE AVAILABLE TO MITIGATE THESE DECLINES, WHICH DOES INCLUDE CANNABIS TAX AND SALES TAX THAT WE'RE COVERING TODAY.
INITIALLY, TOT WAS ANTICIPATED TO RECOVER SLOWLY.
RATHER, AS YOU SEE IN FISCAL YEAR 22, THE CITY WAS ABLE TO RECOVER TO PRE PANDEMIC REVENUE LEVELS WITH CONTINUED GROWTH ANTICIPATED IN THE OUT YEARS.
BASED ON CURRENT ACTIVITY THROUGH FEBRUARY, 2024, ESTIMATED REVENUE IS ANTICIPATED TO GROW 5% EACH YEAR, WHICH ANTICIPATES THAT ACTIVITY WILL CONTINUE TO REMAIN STABLE AND THERE WILL BE AN ANNUAL GROWTH IN RENTAL RATES.
THE FORECAST DOES NOT ANTICIPATE ANY NEW REVENUE FROM NEW ESTABLISHMENTS, SUCH AS THE HARD ROCK HOTEL, WHERE STAFF WILL NEED TO MONITOR AND ADJUST REVENUE PROJECTIONS BASED ON ACTUAL ACTIVITY.
FURTHER, THE STRUCTURAL OUT YEAR FORECAST EXCLUDES ONE-TIME IMPACT FROM MAJOR EVENTS LIKE THE 2028 OLYMPICS.
NEXT, WE HAVE UTILITY USERS TAX, SO WE'RE CALLED UUT.
THE CURRENT UUT RATE IS 5% APPLIED TO CUSTOMER BILLS FOR THE USAGE OF ELECTRIC, GAS, TELEPHONE, AND WATER UTILITIES.
IN FISCAL YEAR 25, TOTAL, UUT IS ANTICIPATED AT 52.9 MILLION WITH ACTUAL REVENUES, HIGHLY DEPENDENT ON UTILITY PRICES AND CONSUMER USAGE.
BECAUSE REVENUE IS DEPENDENT ON CONSUMPTION, THIS WILL CAUSE FLUCTUATIONS OR MAY CAUSE FLUCTUATIONS EACH YEAR.
ASSUMPTIONS ARE UNIQUE TO EACH UTILITY AND WILL BE SUMMARIZED ON THE NEXT SLIDE.
UUT PROJECTIONS ARE BASED ON CURRENT DATA THROUGH MARCH, 2024, AS WELL AS AVERAGE PRIOR YEAR HISTORY AND GENERALLY ASSUMES CONSUMPTION ACTIVITY REMAINS STEADY WITH ANNUAL RATE ADJUSTMENTS BY UTILITY PROVIDERS.
WITH ELECTRIC, THE FORECAST ASSUMES A 10% GROWTH FACTOR BASED ON INCREASED USAGE SUCH AS THE SHIFT TO ELECTRIC VEHICLE USE.
FURTHER, THIS REVENUE DOES FLUCTUATE THROUGHOUT THE YEAR BASED ON WEATHER PATTERNS.
UH, FOR EXAMPLE, WARMER PERIODS DOES SEE AN INCREASE IN ELECTRICAL USE DUE TO AC, FOR EXAMPLE, SECOND GAS.
UT EXPERIENCED A SIGNIFICANT INCREASE IN FISCAL YEAR 23 DUE TO GAS.
THE GAS PRICE SPIKE AS PART OF THE NATURAL GAS PRICE SPIKE RELIEF PROGRAM, 1.6 MILLION IN UUT REVENUE REPORTED HERE, UH, DURING THE GAS PRICE SPIKE WAS USED TO IMPLEMENT THE PROGRAM.
SINCE THEN, FISCAL YEAR 24 REVENUE HAS BEEN STABILIZING, BUT TRENDING LOWER THIS YEAR DUE TO REDUCED AVERAGE BILLS.
THE GENERAL FUND OUT YEAR FORECAST ASSUMES A 4% GROWTH FACTOR, WHICH INCLUDES ANTICIPATING AT TYPICAL RATE INCREASES.
FINALLY, LIKE ELECTRIC U UT GAS, UT IS ALSO IMPACTED BY WEATHER.
HOWEVER, UNLIKE ELECTRIC GAS USAGE TENDS TO INCREASE DURING COLDER PERIODS DUE TO HEATING USE.
PROJECTIONS WILL BE UPDATED AS STAFF MONITOR'S PERFORMANCE IN THIS AREA INCLUSIVE OF THE GRADUAL TRANSITION FROM GAS TO ELECTRIC.
THIS INCLUDES THE POTENTIAL FOR ELECTRIC UUT TO GROW BEYOND OUR PROJECTIONS TODAY AND AVAILABLE TO MITIGATE MAYBE POTENTIAL DECLINES ON THE GAS UUT SIDE FOR TELEPHONE, THIS IS THE ONLY UUT THAT IS ASSUMED TO EXPERIENCE AN ANNUAL DECLINE IN FISCAL YEAR 25 AND THE OUT YEARS.
THE DECLINE IS ASSUMED AT 3% OVER THE COURSE OF SEVERAL YEARS.
THE CITY EXPERIENCE DECLINES LARGELY DUE TO COMPETITIVE PRICING ENVIRONMENT AND CHANGES IN PHONE USAGE HABITS.
SO IT INCLUDES CUTTING LANDLINES AND ALSO THE WAY CUSTOMERS USE
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CELL PHONES SUCH AS STREAMING OR INTERNET MESSAGING APPS, WHICH ARE NOT SUBJECT TO UUT.FINALLY, FOR WATER, LIKE GAS AND ELECTRIC, THIS UTILITY IS ALSO SUBJECT TO WEATHER PATTERNS.
FOR EXAMPLE, WETTER SEASONS RESULT IN LESS CONSUMPTION FOR WATERING THE ANNUAL GROWTH FACTOR OF 7% ANTICIPATES ANNUAL RATE INCREASES.
NOW WE HAVE OUR FINAL ITEM, CANNABIS TAX MEASURE.
MA SETS A GROSS RECEIPTS TAX FOR SALES OF BOTH MEDICAL AND ADULT USE CANNABIS, AND ESTABLISHES A TAX ON THE SALE CULTIVATION, MANUFACTURING, TESTING, AND DISTRIBUTION OF CANNABIS IN THE, IN THE CITY.
AS PART OF THE FY 24 BUDGET MEASURE, MA REVENUE PROJECTIONS WERE REDUCED BY 1.1 MILLION TO ACCOUNT FOR THE 1% TAX RATE REDUCTION TO CANNABIS CULTIVATION AND ADULT USE RETAIL BUSINESSES.
THIS 1% REDUCED RATE WAS IMPLEMENTED IN MAY, 2024 AS PART OF THE PILOT TAX PROGRAM, WHICH WAS APPROVED BY CITY COUNCIL.
IN ADDITION TO THE TAX RATE REDUCTION, THE PILOT TAX PROGRAM ALSO INCLUDES A 3% TAX CREDIT TO ELIGIBLE BUSINESSES.
AS THE PROGRAM MOVES FORWARD, STAFF WILL BE MONITORING THE REVENUE IMPACT FROM THE PILOT TAX PROGRAM, SOME ADDITIONAL INFORMATION ON CANNABIS TAX REVENUE AND TRENDS.
DURING THE EARLY YEARS OF MEASURE MA IMPLEMENTATION, FISCAL YEARS 18 AND 19 REVENUES WERE LOWER THAN BUDGET.
DUE TO SLOW PACE OF BUSINESS STARTS.
IN FISCAL YEAR 20, THE CITY STARTED TO EXPERIENCE A SIGNIFICANT REVENUE INCREASE DUE TO THE UNEXPECTED SURGE OF CANNABIS SALES DURING THE PANDEMIC, WHICH CONTINUED TO INCREASE IN 21 AND 22.
THEN SOMEWHAT LEVELING IN FISCAL YEAR 23.
AT THESE HIGHER LEVELS IN FISCAL YEAR 24, WE ARE EXPERIENCING A DROP IN REVENUE, WHICH MAY BE ATTRIBUTED TO VARIOUS FACTORS.
IN ADDITION TO THE IMPLEMENTATION OF THE PILOT TAX PROGRAM, OTHER FACTORS IMPACTING REVENUE INCLUDE TAX COMPLIANT ISSUES, BUSINESS CLOSURE, AND A DECREASE IN SALES.
IT IS IMPORTANT TO NOTE THAT ON THE SALES TAX SIDE, WE ARE ALSO SEEING A DECREASE FROM RECENT YEARS IN CANNABIS SALES.
HOWEVER, STAFF CONTINUES TO MONITOR ACTIVITY, WHICH IS CURRENTLY INDICATING THAT REVENUES MIGHT BE TRENDING HIGHER THAN OUR CURRENT FY 24 MID-YEAR ESTIMATE, BUT WILL BE CONFIRMED AS PART OF OUR FISCAL YEAR 24 YEAR END REVIEW.
THERE IS NO OUT YEAR GROWTH BEYOND FISCAL YEAR 25.
AS PREVIOUSLY NOTED, STAFF WILL NEED TO MONITOR THE REVENUE IMPACTS OF THE PILOT TAX PROGRAM INCLUSIVE OF THE 1% RATE REDUCTION AND 3% TAX CREDIT FOR ELIGIBLE BUSINESSES, AND WE'LL BE UPDATING PROJECTIONS AS THE PROGRAM MOVES FORWARD.
AND WITH THAT, THIS CONCLUDES THE PRESENTATION AND WE ARE AVAILABLE FOR ANY QUESTIONS.
UM, DO WE HAVE ANY QUESTIONS FROM MY COUNCIL COLLEAGUES? UM, LEMME DID YOU, DID YOU WANNA GO FIRST, ROBERTA OR I COUNCILMAN BARGO OR I CAN GO, HUH? DO YOU HAVE QUESTIONS? I OKAY, NO WORRIES.
UM, THEN I'LL GO AHEAD AND GO, UM, I HAD A COUPLE OF QUESTIONS.
SO MOST OF THESE ARE KIND OF CLARIFICATIONS FOR ME OR THINGS THAT, UM, I GET QUESTIONS FROM EITHER MY STAFF OR RESIDENTS FROM THAT ARE UNCLEAR TO THEM.
SO ONE IS, CAN YOU JUST GIVE THIS A BASIC DEFINITION OF WHAT PROPERTY TAX IN LIEU OF VLF IS? OF COURSE.
SO, UH, VLF STANDS FOR THE VEHICLE LICENSE FEE AND, UM, IT IS FROM A 2004 STATE REVENUE SWAP BETWEEN PROPERTY TAX AND VEHICLE LICENSE FEES.
SO AT THAT TIME, UM, THEY, UH, THE STATE HAD, UH, REDUCED THE VLF RATE AND THEN REPLACED, UH, IT WITH LIKE REVENUES FROM PROPERTY TAX, SO AS A ONE FOR ONE.
AND AFTER THAT TIME, UH, THAT REVENUE SOURCE WILL THEN, UH, GROW AT THE SAME RATE AS OUR ASSESSED VALUATIONS.
SO IT WAS, IT WAS A REVENUE SWAP BETWEEN THE TWO.
UM, AND THEN FOR THE SECTION THAT SAYS CITY SALES AND USE TAX, WE HAVE NON MEASURE A AND MEASURE A.
THE IDEA BEING IS THAT WE GET A SET PROPERTY SALES TAX, CORRECT.
A PORTION OF THAT COMES BACK TO THE CITY, AND THEN THE ADDITIONAL AMOUNT IS WHAT WE GET FOR THAT'S MEASURE, THAT'S SPECIFIC TO MEASURE A.
ALL CITIES IN CALIFORNIA GET A BASE 1% OF WHATEVER THE SALES TAX RATE IS IN A LOCALITY.
AND THEN BECAUSE LONG BEACH VOTERS SEVERAL TIMES HAVE APPROVED MEASURE A AND ADDITIONAL SALES TAX RATE, IT WAS 1% AT THE BEGINNING.
NOW IT'S THREE QUARTERS OF A PERCENT TODAY THAT IS A, A SEPARATE, UM, TRANSACTIONS AND NEWS TAX, WHICH IS SLIGHTLY DIFFERENT FROM A SALES TAX, BUT VERY
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CLOSE.AND THAT COMES BACK TO THE CITY, UH, EXCLUSIVELY ONLY BECAUSE THE VOTERS APPROVED IT.
UM, FOR THE PUBLIC SAFETY AUGMENTATION FUND, UM, YOU MENTIONED THAT THAT'S, UH, A REVENUE MEASURE THAT COMES BACK TO FOR PUBLIC SAFETY TO LOCAL JURISDICTIONS.
SO YOU SAY WE GET ABOUT $7 MILLION FOR THAT? THAT'S CORRECT.
THAT'S THE ESTIMATE FOR FISCAL YEAR 25, UH, FOR PUBLIC SAFETY FOR POLICE.
SO SPECIFICALLY FOR THE POLICE DEPARTMENT, NOT FOR THE FIRE DEPARTMENT, CORRECT.
UM, CAN YOU GUYS TALK A LITTLE BIT JUST ABOUT LIKE YOUR METHODOLOGY WHEN YOU'RE THINKING ABOUT LIKE PROJECTIONS, UH, YEAR TO YEAR AND LIKE HOW YOU, UM, WHAT'S THE METHODOLOGY FOR DETERMINING WHAT WE AS A CITY CAN DEPEND ON MAYBE FROM TLT, AND THEN IF WE DON'T ACHIEVE THAT, UM, WHAT ARE SOME OF THE OTHER BUCKETS THAT ARE POTENTIALLY USED TO KIND OF BACKFILL IF WE DON'T, UM, GET THE SAME AMOUNT THAT WE THINK THAT WE'RE GONNA GET FROM TOT YEAR TO YEAR? LET ME ANSWER THAT QUESTION FIRST IN THE AGGREGATE ABOUT ALL REVENUE SOURCES, AND THEN GERALDINE CAN TALK ABOUT THE SPECIFICS OF HOW WE FORECAST TRANSIENT OCCUPANCY TAX FOR ALL REVENUE SOURCES, COUNCIL POLICY, AND THE FINANCIAL MANAGEMENT DEPARTMENT'S POLICY IS TO ESTIMATE AT THE 50% CONFIDENCE LEVEL FOR EVERY SINGLE GENERAL FUND REVENUE SOURCE.
IN OTHER WORDS, EQUAL CHANCE THAT OUR FORECAST WILL BE TOO LOW AS TOO HIGH.
UH, ALL THOSE REVENUE SOURCES ARE FORECASTED BASED ON OUR BEST EX, OUR BEST GUESS, OUR BEST EXPECTED VALUE.
WE'RE NOT TOO CONSERVATIVE AND UNDERESTIMATING REVENUE, AND WE'RE NOT TOO WI WIDE-EYED, OPTIMISTIC ON THE UPSIDE.
AND SO WITH, BECAUSE, BECAUSE LONG BEACH HAS, UM, A VERY DIVERSE REVENUE SET, YOU SAW THE DIFFERENT WEDGES IN THE, UM, PIE GRAPH THAT GERALDINE SHOWED AT THE BEGINNING.
UM, WE HAVE DIVERSITY OF REVENUE SOURCES IN THE GENERAL FUND.
AND SO IF THE BUDGET OFFICE, IF THE FINANCIAL MANAGEMENT DEPARTMENT HAPPENS TO BE TOO HIGH ON ONE REVENUE ESTIMATE, WELL, WE MIGHT BE TOO LOW ON ANOTHER.
WE BENEFIT FROM THE LAW OF LARGE NUMBERS IN FORECASTING.
SO WE DON'T DELIBERATELY UNDERESTIMATE, WE DON'T DELIBERATELY OVERESTIMATE, WE TAKE OUR BEST SHOT AT EACH REVENUE ESTIMATE.
SO NOW GERALDINE EXPLAINED WHAT OUR BEST SHOT IS ON TRANSIENT OCCUPANCY TAX.
SO FOR TRANSIENT OCCUPANCY TAX, UH, WHAT WE LOOK AT IS AT A PER BUSINESS LEVEL, UH, WE TAKE A LOOK AT TRENDS OVER THE LAST THREE YEARS AND ALWAYS, UM, COMPARE SAME MONTH TO, UH, THE LAST, THE SAME MONTHS, COUPLE YEARS PRIOR TO SEE IF THERE IS A SUSTAIN SUSTAINED LEVELS OF ACTIVITY OR IF THERE'S GROWTH.
ALSO, AS PART OF OUR PROJECTION METHODOLOGY, IF WE DO SEE ANY ANOMALIES, WHETHER HIGHER OR LOWER, WE DO TAKE A LOOK TO SEE IF THERE WAS ANY UNUSUAL ACTIVITIES.
SO UNUSUAL ACTIVITY COULD BE TO OUR BENEFIT, UH, LARGE CONFERENCES, MAJOR CITY EVENT OR MAJOR EVENTS THAT ARE BEING HOSTED IN THE CITY.
AND SO ALL OF THAT COMES DOWN TO, UM, THEN TRYING TO PROJECT OUT TO SEE, OKAY, IS THIS GONNA HOLD FOR THE REST OF THE YEAR? UM, AND THEN PATTERNING IN, UH, USAGE ALSO COMES INTO PLAY IN TERMS OF THE PORTIONS OF THE YEAR.
SO WHAT WE DO SEE IS, UH, UPTICK IN THE SUMMER AS OPPOSED TO EARLIER PARTS OF THE YEAR AS WELL.
SO SEASONALITY IS DEFINITELY A FACTOR.
AND AS PART OF THAT, WE CONSULT WITH MEET LONG BEACH, WHO'S EVEN CLOSER TO THE INDUSTRY THAN WE ARE.
UM, I WAS LOOKING AT THE UTILITY USERS TAX AND I WAS KIND OF INTRIGUED A LITTLE BIT BY THE 4% ANNUAL GROWTH FACTOR FOR GAS.
UM, I THINK WE ALL HEAR A LOT ABOUT LIKE THE TRANSITION TO LIKE ELECTRIC APPLIANCES AND ALL OF THESE TYPES OF THINGS, RIGHT? SO I THINK THERE'S THE CONCERN THAT POTENTIALLY OUR KIND OF NATURAL GAS USAGE WOULD GO DOWN OVER TIME.
CAN YOU TALK A LITTLE BIT ABOUT YOUR METHODOLOGY AND OUR EXPECTATIONS AS A CITY AS WE KIND OF DO THIS TRANSITION? SO OUR CURRENT PROJECTIONS IS BASED ON CURRENT YEAR ACTIVITIES.
SO WHAT IS INCLUDED, UM, IN OUR RECENT EXPERIENCE AND WHAT WE'RE EXPERIENCING IN CURRENT MONTHS.
SO, UM, AS WE, WE TAKE A LOOK MONTH OVER MONTH BASED ON HIS HISTORY, AND I SUSPECT THAT AS THE CITY WILL TRANSITION, UH, TOWARDS NEW ENERGY REVENUE SOURCES, WE'LL GRADUALLY SEE A, A DOWNTURN IN ONE AND POTENTIALLY AN UPTICK IN THE OTHER.
HOWEVER, UM, OUR REVENUES ONLY AS WITH MOST OF OUR REVENUE SOURCES, IS BASED ON THE MOST UPDATED INFORMATION THAT'S AVAILABLE.
AND WE DO, UH, REVISIT AND UPDATE PROJECTIONS MOVING FORWARD.
BUT AT THIS POINT, UM, WE HAVE NOT FACTORED, UH, ANY TRANSITION, UM, FOR GAS AS OF YET.
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COUNCIL MEMBER ARANGA, FIRST OF ALL, THANK YOU CHAIR FOR VERY THOROUGH QUESTIONING.YOU TOUCHED UPON AN ITEM THAT I WAS GONNA TOUCH UPON, WHICH WAS THE, UH, TOT GIVEN THAT THE OLYMPICS IS GOING TO BE COMING, WE KNOW THAT NOW FOR SURE.
I THINK THE MAYOR BROUGHT THE FLAG IF, IF NOT MISTAKEN, SO WE CAN ANTICIPATE A LITTLE BOOST IN, UH, IN TOT TAXES.
WE ALSO KNOW THAT WE'VE GOT A COUPLE OF THE HOTELS IN THE, WHEN IN THE LOOP OR WHEN THEY'RE COMING FOR THE FUTURE.
ARE THERE PROJECTIONS FOR THOSE NEW HOTELS THAT WILL BE COMING IN AND WHAT THEY WILL BRING IN TERMS OF TOT, ESPECIALLY LOOKING AT THE OLYMPICS COMING IN 2028? SO I'LL START FIRST WITH THE OLYMPICS.
OUR STRUCTURAL BUDGET AT THIS TIME, UM, OR OUR FORECAST DOES NOT INCLUDE ANY OF THE ONE TIME REVENUES THAT MIGHT BE ANTICIPATED AS PART OF THE OLYMPICS.
UM, I HAVE NOT RECEIVED, OR I HAVEN'T SEEN ANY ESTIMATES OR UPDATED ESTIMATES, BUT, UM, AS WE GET CLOSER, UH, WE'LL START TO, UH, FACTOR THAT IN.
BUT IT WOULD BE ACCOUNTED FOR AS A POTENTIAL ONE TIME TO START WITH.
AND THEN ANY SUSTAINED ACTIVITY AFTER THE OLYMPICS, UM, WILL NEED TO BE MONITORED AND ANY ADJUSTMENTS TO THE STRUCTURAL, UM, BUDGET WILL NEED TO BE, UM, INCLUDED.
I SEE THAT WE'VE ALSO BEEN MONITORING OUR CHANGES IN USE HOME USAGE, UM, WITH THE TRANSITION A LOT MORE PEOPLE ELIMINATING LANDLINES LIKE GOING WITH CELL PHONE USAGE.
IS THERE AN EFFORT RIGHT NOW TO, TO GET MORE OF A, MORE OF AN IMPACT FROM CELL PHONE USAGE THAT WILL COME TO THE CITY AS OPPOSED TO THE CURRENT RATE THAT WE'RE GETTING NOW? ARE WE WORKING, IN OTHER WORDS, WITH PHONE COMPANIES OR, UH, CELL PHONE COMPANIES TO INCREASE OUR, OUR, UH, TAX ON CELL PHONE USAGE FOR LONG BEACH? I THINK FEDERAL AND STATE LAW PROHIBIT U LOCALITIES FROM, UH, ASSESSING A UTILITY USER TAX ON STREAMING AND CELL PHONE USAGE.
SO THAT'S KIND OF OFF THE TABLE FOR EVERYBODY.
I'D, I'D HAVE TO DEFER TO THE ATTORNEY'S OFFICE, BUT I'M PRETTY SURE THAT'S THE CASE.
UM, ONE MORE THING WAS THE, UH, THE CANNABIS, UH, TAX, ANY PROJECTIONS ON, I KNOW HOW OUR CITY COUNCIL IS VERY CONCERNED ABOUT THOSE BUSINESSES.
WE, AND YOU SAID HERE, THERE'S BEEN A CHANGE IN SOME BUSINESSES GOING UNDER THERE.
WE WANT TO ENSURE THERE'S SUCCESS AS WELL MAINTAIN THAT REVENUE STREAM OF CANNABIS.
UH, THERE WAS AN UPTICK OBVIOUSLY DURING THE PANDEMIC, MORE PEOPLE BEING AT HOME AND MORE TIME TO, UH, CONSUME THE PRODUCT.
IS THERE, UH, AN EFFORT PRESENTLY TO, OF COURSE WE'RE GONNA TELL PEOPLE TO USE MORE, BUT I MEAN, IN TERMS OF BEING ABLE TO GET MORE BANG FOR A BUCK BESIDES INCREASE, WE'RE NOT GONNA INCREASE TAX ON THAT.
THAT THAT'S A, THAT'S A NEVERMIND, BUT WE DO WISH TO HAVE A LITTLE BIT MORE REVENUE COMING FROM CANNABIS USAGE.
SO WHAT EFFORTS ARE WE DOING NOW TO, UH, BE MORE ACCURATE IN TERMS OF CANNABIS USAGE AND, AND BEING ABLE TO, UH, GET MORE REVENUE FOR THE CITY ON THAT? THANK YOU FOR THE QUESTION.
SO IN OUR, IN THE FY 25 PROPOSED BUDGET, THERE IS A PROPOSED, UM, ALLOCATION FOR A CANNABIS TAX AUDIT.
SO THAT IS ONE MEASURE WITHOUT, UM, INCREASING THE TAX, WHICH AS YOU POINTED OUT, WE WILL NOT BE DOING.
BUT, UM, ENSURING COMPLIANCE IS A PRIORITY FOR FISCAL YEAR 25.
NOW WE'VE HAD A MEASURE MA, NOW FOR, WHAT, THREE YEARS, FOUR YEARS AROUND THERE.
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TWEAKS THAT WE CAN LIVE LOOK AT FOR THE FUTURE OF, UH, MEASURES? MAY, MAY LIKE WE, IN ORDER TO INCREASE OUR, OUR REVENUE ON, ON CANNABIS, DO WE NEED TO TWEAK IT OR IS IT GOOD AS IT IS? MM.WE TO SEE WHAT THE MARKET BEARS STAFF'S NOT RECOMMENDING ANY CHANGES TO MEASURE MA FOR REVENUE MAXIMIZATION AT THIS POINT.
WE'LL WAIT AND SEE WHAT IT, WHAT IT SAYS IN THE FUTURE.
UM, WE'LL GO TO PUBLIC COMMENT.
IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME TO THE PODIUM NOW.
UM, THEN WE CAN GO AHEAD AND VOTE TO RECEIVE AND FILE.
THIS NEXT ITEM WILL BE PRESENTED BY AS I'M BUYING TIME FOR HIM.
OH, WE'RE, WE'RE NOT READY YET.
OH, ITEM THREE IS A RECOMMENDATION TO RECEIVE AND FILE AN OVERVIEW OF THE FY 24 MIDYEAR PERFORMANCE REPORT HIGHLIGHTS FOR THE PROPOSED
[3. 24-54475 Recommendation to receive and file an overview of the FY 24 Mid-Year Performance Report highlights and key drivers for the Proposed FY 25 Budget, including CalPERS and vacancies overview. Suggested Action: Approve recommendation. ]
FY 25 BUDGET.UM, BUT WE, UH, WE ARE NOW READY TO TAKE THE STAFF REPORT, BUT WE APPRECIATE THE ENTHUSIASM.
UH, VERY EXCITED TO HAVE, UH, NADER KAMUS LEAD THIS PRESENTATION IN PARTNERSHIP WITH OMAR RAMUS, WHO IS FROM THE, UM, HR DEPARTMENT AS OUR ADMINISTRATION MANAGER.
UH, GOOD AFTERNOON CHAIR RICK SODI AND MEMBERS OF THE BUDGET OVERSIGHT COMMITTEE.
THIS PRESENTATION WILL GIVE YOU A BRIEF OVERVIEW OF THE FY 24 MIDYEAR PERFORMANCE REPORT WITH ADDITIONAL CONTEXT OF THE KEY DRIVERS FOR THE FY 25 PROPOSED BUDGET, INCLUDING CALPERS, AND A VACANCY OVERVIEW THAT'LL BE GIVEN BY THE HUMAN RESOURCE DEPARTMENT IN YOUR PACKAGE.
AND ATTACHED ONLINE IS A COPY OF THE FULL FY 24 PERFORMANCE REPORT AS A REFERENCE.
THE FY 24 MIDYEAR PERFORMANCE REPORT WAS PRESENTED TO THE CITY COUNCIL ON JUNE 18TH, 2024.
THIS REPORT WAS BASED OFF EARLY ESTIMATES FROM DEPARTMENTS AND CITYWIDE REVENUE ANALYSIS, WHICH WE KNOW CAN VARY SOMETIMES SIGNIFICANTLY BY YEAR END.
ACTUAL YEAREND STATUS WILL BE REPORTED ON AN ANNUAL YEAREND PERFORMANCE REPORT THAT WILL COME TO CITY COUNCIL IN FEBRUARY.
THE FY 24 BUDGET FOR THE GENERAL FUND WAS ADOPTED IN SEPTEMBER, 2023, WHICH PROJECTED AT THE TIME AN 8.8 MILLION STRUCTURAL SHORTFALL, WHICH WAS SLATED TO BE COVERED ON A ONE-TIME BASIS WITH FUNDS MADE AVAILABLE THROUGH THE LONG BEACH RECOVERY ACT SECURING OUR CITY'S FUTURE.
AND THE OTHER RESERVES SET ASIDE FOR THIS PURPOSE.
THE BUDGET ALSO INCLUDED 26.9 MILLION OF ONE-TIME USES COVERED BY ONE-TIME SOURCES, INCLUDING ABOUT 20 MILLION FROM FY 23 SURPLUS AND 7.5 MILLION FROM PROCEEDS RECEIVED FROM THE MONSANTO SETTLEMENT.
AS A REMINDER, THE PROJECTION PROJECTED SHORTFALL IN THE FY 24 ADOPTED BUDGET WAS BASED OFF PROJECTIONS DEVELOPED IN SPRING 2023 WITH THE LATEST DATA AVAILABLE AT THAT TIME.
THE FY 24 MID-YEAR PERFORMANCE REPORT REFLECTS IMPROVEMENTS IN THE OUTLOOK FOR THE CURRENT FISCAL YEAR AS A RESULT OF HIGHER REVENUE PROJECTIONS AND KEY REVENUE SOURCES SUCH AS USER UTILITIES TAX, PROPERTY TAX AND TRANSIT OCCUPATION TAX, AS WELL AS EMERGENCY AMBULANCE FEES, AND THE INTEREST EARNED FROM PULLED CASH ON THE EXPENDITURE SIDE.
SIGNIFICANT VACANCIES, UH, CONTINUE TO REFLECT VARI IN VARIOUS DEPARTMENTS.
YEAR-END PROJECTION ESTIMATES LARGELY SEEN IN CHALLENGES IN STAFFING LEVELS, INCLUDING INCREASED SEPARATION AND RETIREMENT IN BOTH SWORN IN CIVILIAN CLASSIFICATIONS IN THE POLICE DEPARTMENT, WHICH HAS ALSO MADE HEADWAY IN ADDRESSING RECRUITMENT AND INTENTION WITH NEW CITY COUNCIL APPROVED INCENTIVE PACKAGES.
THESE FACTORS COMBINED RESULTED IN, IN THE FY 24 PROJECTED PROJECTION OF 10.8 MILLION SURPLUS IN THE GENERAL FUND, OF WHICH 7 MILLION WAS EARMARKED TO SUPPORT FFY THE FY 25 BUDGET.
THE CITY MANAGER HAS PROPOSED SPECIFIC USES AS PART OF THE FY 25 BUDGET FOR THE MAYOR AND COUNCIL'S CONSIDERATION.
IT LOOKS LIKE THE POWERPOINT JUMPED IN.
THE GENERAL FUND PROJECTION IS INCLUSIVE OF A FEW KEY SET-ASIDES.
AN ADDITIONAL 2.4 MILLION IS PLANNED TO BE SET ASIDE IN THE EMERGENCY
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RESERVES TO BRING THE BALANCE TO 50.1 MILLION, WHICH IS 8% OF THE FY 23 NORMAL OPERATING EXPENDITURES, WHICH IS NOW IN THE MINIMUM POLICY LEVEL, WHICH IS EIGHT TO 10% IN FY 24.A CHANGE IN THE INDIRECT COST METHODOLOGY WAS ALSO IMPLEMENTED TO UPDATE INDIRECT COST PLAN CHARGES TO GRANTS, WHICH WILL, WILL RESULT IN MAXIMIZING COST RECOVERY FROM IN THE GENERAL FUND.
THIS MIDYEAR PROJECTION INCLUDES A BENEFIT TO THE GENERAL FUND FROM THIS METHODOLOGY INCLUSIVE OF A 5 MILLION POSSIBLE TRANSFER BACK TO THE HEALTH FUND GROUP TO HELP COVER PORTIONS OF THE INDIRECT COST PLAN CHARGES.
ALSO IMPROVED PROJECTIONS IN THE GENERAL FUND AND CONTINUED DEPARTMENT SAVINGS DUE.
THE VACANCIES HAVE ALLOWED THE POSSIBLE PRESERVATION OF LONG BEACH RECOVERY ACT AND SET ASIDES FOR UNFUNDED NEGOTIATION.
LABOR COSTS ORIGINALLY PLANNED TO BALANCE THE BUDGET, WHICH IF PRESERVED, WILL SUPPORT PROJECTED SHORTFALLS IN FY 25 AND BEYOND.
THE REPORT ALSO PROVIDES NOTABLE UPDATES ON OTHER FUNDS.
FOR EXAMPLE, MEASURE A CONTINUES TO BE IMPACTED BY LOWER THAN PROJECTED REVENUES DUE TO SIMILAR TRENDS IMPACTING SALES AND USE TAX REVENUES.
THE MEASURE A PLAN IS CURRENTLY PROJECTED PROJECTING A $2.7 MILLION SHORTFALL, WHICH WILL BE MONITORED AND FOR ANY POSSIBLE ACTION AT YEAR END IF THE PERFORMANCE DOES NOT IMPROVE BASED OFF THIS LATE LATEST PROJECTION.
ANOTHER KEY FUND DISCUSSED IN THE REPORT IS THE TIDELANDS OPERATING FUND, WHICH IS PER PROJECTING A $12 MILLION SURPLUS AS A RESULT OF HIGHER OIL PRICES THAN ASSUMED IN THE BUDGET OF WHICH 7 MILLION PROJECTED SURPLUS IS BEING EARMARKED FOR CRITICAL PROJECTS AS PART OF THE FY 25 BUDGET.
THESE PROJECTIONS WILL BE REVISITED AGAIN AT YEAR END AND ADDITIONAL DECISIONS CAN BE MADE AT THE TIME DEPENDING ON THE OUTCOME OF THE FISCAL STATUS.
THE TREND IN PROJECTIONS REPORT IN THE FY 24 MID-YEAR PROJECTION WAS ALSO INCORPORATED IN THE FY 25 PROPOSED BUDGET, WHICH WE'LL GO OVER IN THE NEXT FEW SLIDES.
ALONG WITH A SHORT OVERVIEW OF CALPERS IN MARCH, 2024, STAFF PRESENTED THE BUDGET FORECAST IN THE GENERAL FUND, WHICH SHOW THE PROJECTED SHORTFALL OF 23.5 MILLION.
AS A REMINDER, THE FY 25 PROJECTED SHORTFALL INCLUDES 8.8 MILLION, WHICH WAS SOLVED ON A ONE-TIME BASIS AND CARRIED OVER FROM FY 24 WITH THE UPDATED PROJECTIONS IN THE PROPOSED FFY 25 BUDGET.
THE PROJECTED STRUCTURAL SHORTFALL IS NOW 20.3 MILLION, A 3.2 MILLION IMPROVEMENT TO THE STRUCTURAL SHORTFALL SINCE MARCH, 2024, INCLUSIVE OF THE USE OF 1 MILLION IN MEASURE A MAINTENANCE.
THE FY 25 BUDGET ALSO INCLUDES 10.4 MILLION ONE TIMES INVESTMENTS.
THE FY 25 PROPOSED BUDGET IS BALANCED USING ONE TIME SOLUTIONS INCLUSIVE OF 19.7 MILLION OF FUNDS MADE AVAILABLE THROUGH THE LONG BEACH RECOVERY ACT.
3.8 MILLION FROM RESERVES SET ASIDE FROM NEGOTIATE NEGOTIATION LABOR INCREASES 250,000 OF MEASURE A REVENUES RECOGNIZED ON A ONE-TIME BASIS AND 7 MILLION OF ANTICIPATED GENERAL FUND SURPLUS IN FY 25.
THAT WAS EARMARKED FOR CRITICAL PROJECTS.
ALTHOUGH THE FY 25 PROPOSED BUDGET IS BALANCED, IT'S ON A ONE-TIME BASIS WITH THE STRUCTURAL SHORTFALL CONTINUING THE OUT YEARS YET YEARS, WHICH WE WILL COVER SOME MAIN DRIVERS IN THE NEXT FEW SLIDES.
ON THE REVENUE SIDE, THERE HAS BEEN A FEW KEY REVENUE STREAMS SHOWING IMPROVEMENT THAT CONTINUE INTO FY 25.
THIS IMPROVEMENT, THIS IMPROVEMENT TO THE OVERALL REVENUE OUTLOOK IS LARGELY DRIVEN BY THE MAJOR TAX SOURCES COVERED IN THE PRIOR PRESENTATION, INCLUDING USE USER UTILITY TAXES, PROPERTY TAX AND TRANSIT OCCUPANCY OCCUPANCY TAX.
THE EXCEPTION IS SALES AND USE TAX, INCLUDING MEASURE A, WHICH IS EXPERIENCING THE DECLINE, SLOW GROWTH IN DIFFERENT AREAS.
THIS SLIDE HERE SHOWS OVERALL BUDGET IMPACT WHEN IT COMES COMPARING TO THE FY 25 TO THE FY 24 ADOPTED BUDGET, WHICH INCORPORATES IMPROVEMENTS ANTICIPATED IN THE FY 24 PROJECTION IN ADDITION TO SALES TAX REVENUES.
THE OTHER KEY AREA KEY REVENUE STREAMS HIGHLIGHTED AS PART OF THE FY 25 BUDGET.
AS MENTIONED DURING THE CITY MANAGER'S PRO PROPOSED PRESENTATION IS THE FIRST YEAR OF THE CITY'S STRATEGY TO REDUCE THE GENERAL FUND RELIANCE ON THE OIL PROCEEDS AND TAXES DOWN TO ZERO BY FFY 20 FY 30 INTEREST POOLED CASH REVENUE CONTINUES TO INCREASE SINCE FY 24 DUE TO THE INCREASED INTEREST RATES AND HIGHER CASH BOUNCES IN THE GENERAL FUND RELATED TO FUND GROUPS.
FINALLY, THE FY 24 BUDGET INCLUDES A STRUCTURAL INCREASE TO THE EMERGENCY AMBULANCE FEE DUE TO THE PUBLIC PROVIDER GROUND EMERGENCY MEDICAL TRANSPORT, INTERGOVERNMENTAL TRANSPORT TRANSFER PROGRAM, ALSO KNOWN AS P-P-G-M-T.
THIS PROGRAM WAS IMPLEMENTED IN JANUARY 1ST, 2023, WHICH APPORTIONED WILL BE USED TO OFFSET THE PAYMENT TO THE STATE FOR THE PROGRAM.
WITH THE IMPROVEMENT SEEN IN KEY REVENUE STREAMS, THE GENERAL FUND IS STILL PROJECTING STRUCTURAL SHORTFALL AS GENERAL FUND EXPENDITURE GROWTH HAS EXCEEDED
[00:40:01]
THE IMPROVED REVENUES ON THE YEAR OVER YEAR COMPARISON SINCE THE FY 24 ADOPTED BUDGET AND INCLUDES AN EIGHT, INCLUDING THE 8.8 MILLION STRUCTURAL SHORTFALL THAT WAS CARRIED OVER FROM FY 24.LABOR IS THE CITY'S LARGEST DRIVER OF EXPENDITURES.
THE PROJECTED LABOR COSTS INCREASE IN FY 24 OVER THE FY 25 BUDGET IS APPROXIMATELY 23 MILLION FOR SEVERAL REASONS, UH, INCLUDING PREVIOUSLY NEGOTIATED PAY RAISES AND BENEFIT CHANGES IN EMPLOYEE LABOR CONTRACTS AND STEP INCREASES FOR CURRENT EMPLOYEES FOR OUT YEAR PROJECTIONS WITH NO AGREEMENTS, LABOR CONTRACTS, ASSUMPTIONS IN THE PROJECTIONS RESULTING AN AVERAGE OF ABOUT 15 MILLION PER YEAR.
CHANGES FROM CHARGES FROM INTER INTERNAL SERVICES FUNDS ARE ALSO IMPACTED BY LABOR, INCREASES COSTS AND NATURAL COST OF INCREASED CONTRACTS, MATERIALS AND EQUIPMENT IN ADDITION TO LABOR, INCREASES IN FY 25 CHARGES TO THE GENERAL FUND FOR CRITICAL TECHNOLOGY.
INNOVATION NEEDS ARE ALSO IMPACTED BY NEEDS FOR ENHANCED CYBERSECURITY AND INFORMATION INFORMATION TECHNOLOGY STRUCTURE WITHIN THE CITY.
CHARGES FOR FLEET RELATED COSTS CONTINUE TO RISE FOR THE PURCHASE, MAINTENANCE AND REPLACEMENT OF VEHICLES.
IN ADDITION TO RISING FUEL COSTS FOR WORKERS' COMPENSATION, WE HAVE BEEN ABLE TO KEEP WORKERS' COMPENSATION RATES AND CHARGES TO DEPARTMENTS RELATIVELY FLAT IN PRIOR YEARS.
HOWEVER, DUE TO INCREASED EXPENDITURES IN THE FUND, INCLUDING CLAIMS COST FY 25 REQUIRES RATE RECALIBRATIONS TO BETTER ALIGN TO THE PROJECTED EXPENDITURES.
LASTLY, CALPERS PENSION COSTS INCREASED MUCH HIGHER THAN ANTICIPATED.
THIS IS DUE TO THE NEGATIVE 7.5% CALPERS INVESTMENT RETURN EXPERIENCE IN THE FYI 21 AND 22 YEAR, WHICH WARRANTED RATE INCREASES TO RECOUP THESE COSTS.
PENSION COSTS ARE SIGNIFICANT.
PENSION COSTS ARE SIGNIFICANT COSTS DRIVER TO, TO THE CITY'S INCREASING ANNUAL PAYMENTS.
AS A QUICK REMINDER OF THE CALPERS PROGRAM, THE CALPERS RE RE RETIREMENT SYSTEM IS A DEFINED BENEFIT PLAN AS OPPOSED TO A DEFINED CONTRIBUTION PLAN.
THIS MEANS THAT THERE IS A FIXED PRE-ESTABLISHED BENEFIT FOR EMPLOYEES AT RETIREMENT BASED OFF OF FORMULA THAT IS CONSIDERED YOUR SALARY, YEARS OF SERVICE, AGE, AND BENEFIT PLAN.
THE FISCAL AND ACTUARY GOAL OF THIS PLAN IS TO ENSURE THAT ENOUGH FUNDS ARE ACCUMULATED TO PAY FOR THE BENEFIT TO THIS END.
CALPERS WORKS TO PRE-FUND THE PLAN IN ORDER TO HAVE ENOUGH FOR ENOUGH FOR THE RETIREE BENEFITS.
THE PLANS ARE FUNDED THROUGH THREE DIFFERENT SOURCES, MEMBER CONTRIBUTIONS, EMPLOYEE CONTRIBUTIONS, AND CALPER INVESTMENTS.
THE MAIN FOCUS OF THE CALPERS TODAY IS THE IMPACT ON THE EMPLOYER'S CONTRIBUTIONS, AS THAT'S WHAT WE ARE TALKING ABOUT WHEN LOOKING AT THE PROJECTED COST DRIVERS IN THE BUDGETS DISCUSSION.
THIS IS WHAT IT COSTS THE CITY, OUR SHARE OF THE COST TO FUND THE RETIREMENT BENEFITS.
IN TERMS OF TIMING, THE CITY CONTRIBUTES.
CONTRIBUTION RATES ARE PARTIALLY DETERMINED BY CALPERS INVESTMENTS EARNINGS FROM THREE YEARS PRIOR.
FOR EXAMPLE, INVESTMENT RETURNS ENDING IN JUNE 30TH, 2022 WILL PRIMARILY IMPACT THE CITY'S FY 25 RATES WITH SOME IMPACT TO FY 24.
THE EXPECT THE EXPECTED DISCOUNT RATE IS SIX, UM, 6.8% FOR FY 25, MEANING THE ACTUARY ANALYSIS CONDUCTED BY CALPERS TO DETERMINE OUR RATE, ASSUMES THAT THEY WILL EARN AT LEAST 6.8% IN THE MARKET.
ANYTHING BELOW 6.8 WILL BE A LOSS IN NEGATIVELY IMPACT OUR RATES.
THE POSITIVE RETURNS AS OF JUNE 30TH, 2021, HAVE IMPROVED THE RATES FOR FY 24, BUT NOT FULLY BECAUSE OF THE RISK MITIGATION METHODOLOGY ADOPTED BY CALPERS, WHERE SIGNIFICANT GAINS, THE CITY EXPERIENCES WILL PARTIALLY BE USED TO FURTHER LOWER THE INVESTMENT MIX TO THE LESS RISKY AND LOWER LOWERING THE ASSUMED RATE OF RETURN, RATHER THAN REFLECTING THOSE LOWER COSTS TO THE CITY.
THIS IS WHY THE DISCOUNT RATE WAS LOWERED TO 6.8 FROM 7%, EVEN STILL BECAUSE THE 6 30 21 RETURNS WERE SO POSITIVE AND THE HIGH 21.3%, THE GENERAL FUND IS SHOWING SAVINGS IN FY 20 FOR THE FIRST TIME IN MANY YEARS FOR PENSION COSTS.
HOWEVER, THE INVESTMENT RETURNS FOR A YEAR RETURN A YEAR LATER FOR THE YEAR ENDING JUNE 30TH, 2022, WAS A NEGATIVE 7.5%, WHICH IS A LOSS AND WILL IMPROVE THE IMPACT THE OUT YEARS IS FORECASTING, STARTING THE FY 25 TO PENSION LOSSES.
THE TABLE YOU SEE ON THIS, UH, SLIDE SHOWS AN INCREMENTAL INCREASE IN INCREMENTAL IMPACT TO THE GENERAL FUND YEAR OVER YEAR BY, UH, THE CALPERS COST.
AS MENTIONED, THE INCREASED COST FY 25 IS LARGELY IS A RESULT OF THE 7.5% INVESTMENT RETURN EXPERIENCE IN THE, UH, YEAR ENDING 2022, WHICH IMPACTS THE CITY'S FY 25 COSTS.
AND OUT YOUR CALPERS FORECAST TO INCLUDE COST INCREASES INSTEAD OF SAVINGS FOR A PROSPECTIVE CALPERS INVESTMENT RETURNS
[00:45:01]
ASSUMES THE 6.8% MAKING A NEGATIVE SEVEN 5% INVESTMENT RETURN MEANS 14.3% LOWER THAN EXPECTED, WHICH REQUIRES INCREASED CONTRIBUTIONS OVER A FIVE YEAR RAMP UP STARTING IN FY 25.THESE COSTS ARE VERY SENSITIVE TO THE MARKET RETURNS, WHICH CREATES A LOT OF VOLATILITY ON OUR FORECAST.
FOR EXAMPLE, CALPERS HAS REP REPORTED A PRELIMINARY INVESTMENT RETURN OF 9.3% FOR THE FISCAL YEAR ENDING JUNE, 2024.
IF THE PROJECTIONS HOLDS FOR FINAL REPORTING, THE CITY WILL EXPERIENCE A BENEFIT WITH A POSSIBLE REDUCTION IN DISCOUNT RATE AND CREDITS TO ITS CONTRIBUTION RATES, WHICH WILL HAVE A POSITIVE IMPACT ON THE OUT YEAR PROJECTIONS STARTING IN FY 27.
STAFF WILL CONTINUE TO MONITOR AND UPDATE THE PROJECTIONS ACCORDINGLY WITH THE LATEST INFORMATION PROVIDED.
AND WITH THIS, I'LL HAND IT OVER TO JOE, DIRECTOR OF ME, UH, DEPARTMENT OF HUMAN RESOURCES FOR A BRIEF OVERVIEW OF VACANCIES.
GOOD AFTERNOON, UH, CHAIR RICK SODE, MEMBERS OF THE BUDGET OVERSIGHT COMMITTEE.
UM, I'LL BE TAKING US THROUGH A COUPLE SLIDES ON VACANCY OVERVIEW AND TURNOVER.
UH, RAY PERTAINING TO THE CITY OF LONG BEACH.
SO THE SLIDE BEFORE YOU, UM, HAS A LOT OF NUMBERS ON IT.
UM, AND THIS IS A, UH, UH, UPDATED, UH, VACANCY, UM, RATE BROKEN DOWN BY DEPARTMENT, UM, AS OF JUNE 4TH OF THIS YEAR.
UM, IF YOU LOOK ALL THE WAY IN THE LOWER RIGHT HAND SIDE, YOU'LL SEE THAT 20% NUMBER THAT REPRESENTS THE CURRENT, UM, CITYWIDE VACANCY RATE, UM, CUMULATIVE OF CLASSIFIED AND UNCLASSIFIED POSITIONS ACROSS THE CITY AS OF JUNE 4TH.
UM, YOU MAY RECALL, UM, A 22% NUMBER, UM, BEING MENTIONED SEVERAL TIMES RECENTLY IN PRESENTATIONS, UH, PARTICULARLY RELATED TO THE PROPOSED CHARTER AMENDMENT, UM, FOR CIVIL SERVICE REFORM, UM, FACTORING OR, UM, STATING A 22% NUMBER.
THE 22% WAS A SNAPSHOT AS OF FEBRUARY OF THIS YEAR, AND UPDATED IN JUNE OF THIS YEAR, WE'RE NOW AT 20%.
YOU'LL SEE SOME DEPARTMENTS, UM, HAVE, UH, VACANCY RATES, UM, MAYBE ABOUT 10, 12, 13% WITH, UM, SOME DEPARTMENTS AS HIGH AS IN THE 30% AND EVEN IN THE 40%.
UM, I DO WANT TO CAUTION THAT, UM, THESE RATES, UM, LIKELY HAVE, UM, CHANGED OVER THE LAST TWO MONTHS AS DEPARTMENTS HAVE EITHER FILLED THE POSITIONS, VACANT POSITIONS OR HAVE LOST EXISTING STAFF IN THOSE ROLES.
UM, I DO WANNA MENTION, UM, UH, THAT THE, AS WE'VE DISCUSSED A NUMBER OF TIMES, PARTICULARLY IN THE CHARTER AMENDMENT PRESENTATIONS, THERE'S A NUMBER OF EFFORTS AND INITIATIVES, UM, FROM THE HUMAN RESOURCES PERSPECTIVE, UM, THAT WE'VE BEEN WORKING ON TO, UM, REDUCE THIS NUMBER TO REDUCE CITYWIDE VACANCIES AS MUCH AS POSSIBLE.
UM, ONE OF THEM PRIMARILY BEING THE CITY MANAGER AND THE MAYOR'S PROPOSED CHARTER AMENDMENT, UM, TO HELP, UH, EXPEDITE THE RECRUITMENT AND SELECTION PROCESS FOR CLASSIFIED POSITIONS.
BUT OVER THE LAST COUPLE YEARS, AS WE'VE TALKED ABOUT, WE'VE IMPLEMENTED A TALENT ACQUISITIONS DIVISION IN THE HUMAN RESOURCES DEPARTMENT TO HELP STREAMLINE UNCLASSIFIED HIRING.
UM, RECENTLY, UM, IN THE LAST TWO YEARS, WE'VE HAD SAFETY AND NON-SAFETY MOU NEGOTIATIONS, WHICH HAVE RESULTED IN HISTORIC, UM, EQUITY ADJUSTMENTS TO HELP BRING SOME OF THE POSITIONS THAT WERE WELL BELOW THE MARKET UP TO THE MARKET.
UM, THERE'S BEEN A RECRUITMENT INCENTIVE PROGRAM IMPLEMENTED FOR HARD TO FILL POSITIONS, SORT OF A BONUS.
WE'VE STREAMLINED THE ONBOARDING PROCESS, UM, WITH, IN TERMS OF PHYSICALS, UM, DRUG SCREENINGS AND, UM, BACKGROUND SCREENINGS FOR EMPLOYEES.
AND THEN OUR PARTNER DEPARTMENTS, UM, SUCH AS IN THE POLICE DEPARTMENT, HAVE REALLY TAKEN IT A STEP FURTHER AND LOOKING AT REALLY HISTORIC UNIQUE, UH, INCENTIVES SUCH AS, UM, UH, HEALTH RETIREE HEALTHCARE SUBSIDIES, HOUSING SUBSIDIES, CHILDCARE SUBSIDIES, AND REALLY LOOKING TO HELP INCREASE THE RECRUITMENT INTER RETENTION OF POLICE OFFICERS.
UM, SO THIS SLIDE, UM, TAKES A LOOK AT THE CITY'S TURNOVER RATE, AND WE'RE LOOKING AT A SIX YEAR PERIOD HERE FROM 2018 TO 2024.
UM, HISTORICALLY, THE CITY'S TURNOVER RATE HAS HOVERED AROUND 10%.
UM, THAT PERCENTAGE, UM, INCREASED IN PARTICULAR, UM, STARTING IN 2020 WITH THE COVID TO 19 PANDEMIC.
AND WE'RE, AND WE'RE JUST NOW STARTING TO SEE, UM, THE RAMP DOWN OF THOSE EFFECTS.
UM, 20 20, 20 21 AND 2022 WE'RE REALLY HISTORICAL YEARS, NOT JUST FOR LONG BEACH AND NOT JUST FOR PUBLIC AGENCIES, BUT FOR, UM, ALL INDUSTRIES ACROSS THE COUNTRY WHERE, UM, MANY EMPLOYEES EITHER, UM, LEFT THEIR JOBS AT VERY, VERY HIGH RATES, UM, LEFT THE WORKFORCE ALTOGETHER, MAYBE STAYED HOME OR DECIDED TO GO BACK TO SCHOOL OR START A BUSINESS, OR FELT VERY COMFORTABLE, UM, CHANGING JOBS MULTIPLE TIMES FOR WHATEVER THE BEST OPPORTUNITY THEY COULD GET.
SO THIS WAS REALLY AN UNPRECEDENTED TIME.
UM, THEY'VE DUBBED THAT THE GREAT RESIGNATION, UM, PERIOD.
AND, UM, YOU KNOW, OUR TURNOVER RATES NOW ARE STARTING TO STABILIZE AND COME BACK DOWN TO MORE HISTORICAL LEVELS.
UM, AND THAT'S WHAT WE'RE SEEING RIGHT NOW.
SO THIS SLIDE BREAKS DOWN REALLY THE FOUR MAJOR, UM, REASONS FOR
[00:50:01]
TURNOVER IN THE CITY.UM, THE HIGHEST PERCENTAGE IS 26%.
UM, SO THIS COULD BE FOR A VARIETY OF DIFFERENT REASONS.
AND AGAIN, WE'RE LOOKING AT THE LAST SIX YEARS OF DATA.
SO THE, IN THE PERSONAL REASONS CATEGORY COULD BE LEAVING TO TAKE CARE OF A FAMILY MEMBER RELOCATING OUT OF THE AREA, UM, SEPARATING FOR MEDICAL REASONS, ET CETERA.
THE NEXT HIGHEST CATEGORY IS NON-CAREER TEMPORARY.
SO IN THE CITY OF LONG BEACH, WE DO HAVE, UH, UH, PART-TIME, NON OR NON FULL-TIME POSITIONS, UH, KNOWN AS NON-CAREER POSITIONS THAT ARE HIRED FOR A VERY LIMITED DURATION, UH, USUALLY TO HELP WITH, UH, AN ENHANCED WORKLOAD.
AND THESE POSITIONS ARE CAPPED, UM, UNDER THE CIVIL SERVICE RULES FOR, TO WORK ONLY A CERTAIN NUMBER OF HOURS.
AND THEY'RE REALLY HERE TO JUST REPRESENT TEMPORARY WORK.
SO THIS TYPE OF TURNOVER WOULD BE MORE NATURAL THAT THE TEMPORARY ASSIGNMENT WOULD END AND THE EMPLOYEES WOULD LEAVE.
I DO WANT TO NOTE THAT, UM, THIS SEGMENT, UM, DOES REPRESENT A GREAT OPPORTUNITY UNDER THE PROPOSED CHARTER AMENDMENT, UM, UM, WHERE THE MAYOR AND THE CITY MANAGER ARE PROPOSING TO GRANT HIRING PREFERENCES FOR NON-CAREER EMPLOYEES TO HOPEFULLY GET FULL-TIME POSITIONS.
SO, UM, THERE IS A, A GOOD POSSIBILITY THAT IF THAT AMENDMENT, CHARTER AMENDMENT WERE SUCCESSFUL, THAT THE PERCENTAGE OF NON-CAREER, UH, TURNOVER COULD ACTUALLY BE LOWER IN THE FUTURE AS THESE POSITIONS TRANSITION TO FULL-TIME EMPLOYMENT AT THE CITY.
THIS IS JUST EMPLOYEES WHO ARE ELIGIBLE TO RETIRE, UM, AND RETIRE OUT OF THE CITY.
AND THEN 18% IS FOR OTHER EMPLOYMENT, UM, RE RE RESIGNING OR RETIRING FOR OTHER EMPLOYMENT.
UM, SO TAKING A LOOK AT THE PAST COUPLE SLIDES AND COMPARING IT TO THE NATIONAL TURNOVER RATE.
SO THE BUREAU OF LABOR STATISTICS DOES PUBLISH, UH, A MONTHLY REPORT ON TURNOVER BROKEN DOWN BY, UH, DIFFERENT SECTORS OF, OF INDUSTRIES AND THE STATE AND LOCAL GOVERNMENTS, FOR EXAMPLE, STATE AND LOCAL GOVERNMENT AGENCY SECTOR, UM, HAD A TURNOVER RATE OF 6.8% FOR THE MONTH OF JUNE.
UM, CITY OF LONG BEACH'S TURNOVER RATE IN THE MONTH OF JUNE WAS 5%.
UM, SO WE DO BELIEVE THAT WE ARE TRENDING IN A MORE POSITIVE DIRECTION.
UM, AND LOOKING AT THIS, UM, SO WE DO KNOW THAT THERE'S A NUMBER OF FACTORS THAT CONTRIBUTE TO TURNOVER RATE.
UM, COMPETITION IS VERY, IS STILL VERY, UM, TIGHT FOR TOP TALENT IN THE INDUSTRY.
AND SO WE ARE LOOKING AT, ALTHOUGH IMPROVE, WE'VE MADE A NUMBER OF IMPROVEMENTS IN THE AREAS WITH WAGES AND BENEFITS AND WE DO KNOW THAT, UM, IT'S A CONSTANT BATTLE TO ENSURE THAT LONG BEACH IS REMAINING COMPETITIVE IN THE, IN THE MARKET.
AND THAT CONCLUDES OUR REPORT AND WE'RE HAPPY TO ANSWER ANY QUESTIONS.
UM, I'M GONNA START, 'CAUSE I'LL ADMIT, UH, THE CALPERS PORTION A LITTLE BIT OVER MY HEAD.
SO I'M GONNA ASK YOU SOME VERY SPECIFIC QUESTIONS SO THAT I UNDERSTAND WHAT YOU WERE SAYING WITH ALL THOSE DISCOUNT RATES AND, UH, THE FINANCIAL LINGO, I MEAN THE STATISTICIAN, WE USE JARGON, BUT THAT WAS AN IMPRESSIVE LEVEL.
SO WE'RE GONNA CLARIFY A COUPLE OF THINGS.
CORRECT? UH, FROM THE CITY'S BUDGET STANDPOINT, YES, THAT'S THE IMPORTANT CONTRIBUTION.
BUT, BUT IN THE REAL WORLD, CALPERS INVESTMENTS ACCOUNT FOR 70, 75% OF THE, UH, CONTRIBU OF THE EARNINGS FOR THE SYSTEM.
'CAUSE CALPER HAS HALF A TRILLION DOLLARS UNDER MANAGEMENT.
SO, BUT FROM THE PERSPECTIVE OF THE BUDGET, THE PART THAT IMPACTS US IS THE EMPLOYER CONTRIBUTIONS, CORRECT? CORRECT.
OKAY, SO NOW ON SLIDE 13, YOU SAID THE CITY CONTRIBUTION RATES ARE IMPACTED BY INVESTMENT EARNINGS FOR THREE YEARS PRIOR.
SO THE AMOUNT THAT CALPERS TELLS US AS A CITY THAT WE CONTRIBUTE AS THE EMPLOYERS IS BASED ON, SO IF IT'S 2024, WHAT THEY'RE TELLING US THAT WE UM, THAT OUR CON OUR PROJECTED, OUR, OUR RESPONSIBLE RATE IS FROM 2021.
WHAT THEY EARNED IN 2021 AFFECTS OUR FY 24 CONTRIBUTION RATE, WHICH I THINK IS INTERESTING 'CAUSE THAT'S THE MIDDLE OF A PANDEMIC, BUT HEY, HEY, YOU KNOW, WHO, WHO AM I? UM, AND SO AND SO FOR 2025 NOW IT'LL BE WHAT WE, WHAT WAS THE EFFECTIVE RATE IN 2022? CORRECT.
NADER WAS DESCRIBING THE LOW, UH, RETURN IN 2022 THAT HURT US, INCREASED OUR CONTRIBUTION RATE IN 2025.
SO WE'RE GONNA GET TO THAT 'CAUSE I QUITE FOLLOW THAT PART.
SO THEN WE GET TO THE EXPECTED DISCOUNT RATE.
SO ESSENTIALLY THE INVESTMENT RETURN RATE FOR FISCAL YEAR.
SO BASICALLY, SO THE IDEA BEING RIGHT IS THAT CALPERS IS A PENSION SYSTEM, BUT THEY TAKE THAT MONEY, THEY INVEST IT, THEY GET A RETURN, AND THEN THAT IS USED THEN TO PAY OUT PEOPLE WHO ARE RETIREES, ET CETERA.
UM, SO THEY'RE EXPECTING A RATE OF RETURN BASED ON THEIR INVESTMENT PORTFOLIO OF 6.8%.
IF WE DON'T MEET THAT, THEN OUR RATE GOES UP IN ORDER TO BRING OUR CONTRIBUTION LEVEL UP TO WHAT THEY EXPECTED.
DOES THAT MAKE SENSE EVERYBODY? YEAH, VERY GOOD.
SO THEN WE GET TO THIS POINT, BULLET POINT NUMBER THREE, WHICH IS THE RISK MITIGATION APPROACH USES GOOD INVESTMENT RETURN YEARS TO CHANGE THE INVESTMENT
[00:55:01]
MIX TO THE LOWER RISK.SO THE SUB BULLET POINT SAID IT MAKES IT MORE LIKELY THE LOSSES WILL IMPACT GREATER THAN GAINS.
AND I LITERALLY WROTE NEXT TO THAT.
HUH? SO COULD YOU EXPLAIN WHAT THAT MEANS? YEAH, IT'S COMPLICATED, BUT IT'S IMPORTANT.
UM, CALPERS HAS A RISK MITIGATION PROGRAM THAT SAYS WHENEVER CALPERS EARNS MORE THAN THEIR ASSUMED 6.8%, THEY'LL TAKE HALF OF THAT GAIN AND GIVE THE BENEFIT TO THE CONTRIBUTING EMPLOYERS, WHICH HELPS OUR CONTRIBUTION RATE.
BUT THEY TAKE THE OTHER HALF OF THAT GAIN AND THEY REDUCE THEIR EXPECTED DISCOUNT RATE, THEIR EXPECTED RATE OF RETURN, AND THEN THEY SHRINK THE RISK PROFILE OF THEIR PORTFOLIO SO THAT THERE'S LESS CHANCE OF A DISASTROUS RETURN IN THE FUTURE.
BUT WHEN CALPERS FALLS SHORT OF 6.8%, EMPLOYERS MAKE UP THE WHOLE DIFFERENCE.
SO THAT'S WHAT NADER'S GETTING AT WITH THE BULLET HERE.
SO JUST, I'M GONNA REPEAT THAT BACK TO YOU THE WAY I HEARD IT.
SO IF THEY EXCEED THEIR 6.8% AND THEY HAVE A REALLY GOOD YEAR, RIGHT? UM, WE ARE, THE INVESTMENT PROFILE IS FANTASTIC, RIGHT? SO THEY'LL TAKE THAT OVER, I WILL CALL IT AN OVERAGE, RIGHT? BUT HOW MUCH THEY EXCEEDED, UM, THEIR PROJECTIONS, HALF OF THAT BASICALLY COMES BACK TO THE CITY AS A CREDIT, UH, YES.
AS A REDUCTION IN OUR CONTRIBU REDUCTION CREDIT.
SO WE GET KIND OF, SO IF OUR CONTRIBUTION WAS $7 MILLION AND THEY WERE, IT WAS $2 MILLION OVER, RIGHT? A MILLION OF THAT COMES BACK TO US.
AND SO INSTEAD OF $7 MILLION BEING OUR CONTRIBUTION, OUR EFFECTIVE CONTRIBUTION IS NOW 2 MILLION.
I MEAN, SORRY, IT'S NOW 6 MILLION.
THEN THE OTHER, THE OTHER A MILLION DOLLARS EXPLAIN WHAT THE OTHER MILLION DOLLARS NOW DOES, CALPERS THEN REDUCES THEIR ASSUMED INVESTMENT RATE BELOW 6.8% AND THEY REDUCE IT PERMANENTLY.
AND BY REDUCING IT, THEY CAN UH, THEY CAN SHRINK THE VOLATILITY OF THEIR PORTFOLIO, THEY CAN BE A LITTLE MORE CONSERVATIVE 'CAUSE THEY'RE TRYING TO GUARD AGAINST REALLY DISASTROUS YEARS, LIKE DURING THE GREAT RECESSION.
SO, BUT IN ORDER TO, IN ORDER TO HAVE A LESS VOLATILE, LESS RISKY PORTFOLIO, YOU TRADE RETURN FOR REDUCED VOLATILITY AND REDUCED RISK.
SO THEY HAVE TO REDUCE THE ASSUMED INVESTMENT RETURN FROM 6.8%.
SO FROM THE LOGIC OF CALPERS REDUCING OUR, OUR DISCOUNT RATES, OUR INVESTMENT RETURN RATE MEANS THAT THEY'RE MORE CONSERVATIVE WITH THEIR INVESTMENT PROFILE.
SO THEY'RE NOT BEING AS AGGRESSIVE IN THEIR INVESTMENTS IN ORDER TO GET TO THE RATE THAT THEY BELIEVE.
SO IF THEY LOWER THE RATE, THEY CAN CHANGE THEIR KIND OF INVESTMENT PROFILE MIX SUCH THAT THEY, THEY DON'T, THEY DON'T NEED TO, THEY CAN BE A LITTLE BIT MORE CONSERVATIVE, LESS AGGRESSIVE, IS THAT WHAT YOU'RE SAYING? THAT'S EXACTLY WHAT THEY DO.
AND THAT'S A CONSCIOUS STRATEGY ON THEIR PART OVER THE NEXT 30 OR 40 YEARS.
THEY DON'T WANT TO GO THROUGH ANOTHER, UH, GREAT RECESSION WHERE THEY HAD, WHAT WAS IT, MINUS 28% ONE YEAR, YET THEY'RE TRYING TO GUARD AGAINST THAT.
OKAY, NOW NEXT SLIDE, WHICH IS SLIDE 14.
SO THEN IT WAS LIKE THE CALPERS PENSION COST THAT SAYS, SO PROJECTING HIGHER COST INCREASES IN THE OUT YEARS TO RECOUP INVESTMENT RETURN LOSS FROM 20 21, 20 22.
SO BASED ON WHAT YOU SAID, SO THE IDEA HERE IS THAT BECAUSE WE GOT OUR DISCOUNT RATE WAS BASICALLY, UM, TOO HIGH, RIGHT? DURING THE PANDEMIC, THE, THE INVESTMENT PORTFOLIO STOCKS TANKED.
YOU KNOW, WE ALL KNOW WHAT HAPPENED, RIGHT? SO WE DIDN'T, SO THE CITY IS NOW RESPONSIBLE FOR MAKING UP THAT COST BUT ALSO BECAUSE THE CITY'S CONTRIBUTION RATES ARE IMPACTED BY INVESTMENT EARNINGS FROM THREE YEARS AGO AND THREE YEARS AGO IS 21, 21 AND 2022 ARE NOW CONTRIBUTION GOES UP, EXCEED KIND OF PRETTY HIGH, IT GOES EXCEEDINGLY HIGH TO MAKE UP FOR THAT.
OUR CONTRIBUTION GOES UP IN FY 25, WHICH IS WHY THERE'S THE BAD NEWS ON THIS SLIDE.
AND IT WAS A BIG NUMBER COUNCIL MEMBER BECAUSE THE ASSUMED INVESTMENT RETURN RATE IS PLUS 6.8 AND NADER SAID THE ACTUAL RETURN WAS MINUS 7.3.
SO CALPERS WAS 14.1 PERCENTAGE POINT SHORT OF THEIR TARGET.
THAT'S WHERE YOU GOT, I WAS LIKE, WHERE DID THE 14.8 COME FROM? YEAH, OKAY.
WE MAKE UP ALL OF THAT 14.1% SO YOU ALL REMEMBER THE NUMBER LINE, UH, WHEN YOU WERE IN, UH, THIRD OR FOURTH GRADE, REMEMBER THEY HAD THE ZERO HERE AND YOU COULD GO NEGATIVE OR YOU COULD GO POSITIVE.
ALRIGHT, NEXT TIME, UH, WE DO THE PRESENTATION, I WANT THE NUMBER LINE.
'CAUSE I THINK THAT HELPS TO BE LIKE, 'CAUSE I REALLY WAS LIKE, I DON'T, I'M NOT TRACKING THE 14.8, BUT THAT MAKES SENSE.
UH, ANY QUESTIONS FROM MY, UM, COUNCIL COLLEAGUES, COUNCIL MEMBER? DUGGAN? MY QUESTIONS ARE FAR MORE BASIC THAN THAT, SO, BUT THAT WAS A GOOD LESSON AND UM, SO I'M GONNA START WITH, UM, SLIDE 16
[01:00:01]
JUST ON CITYWIDE VACANCIES.CAN YOU JUST GIVE A DEFINITION FOR EVERYONE TO UNDERSTAND CLASSIFIED VERSUS NON-CLASSIFIED POSITIONS? YEAH, BASIC DEFINITION.
SO UNCLASSIFIED POSITIONS ARE POSITIONS THAT ARE NOT UNDER THE CIVIL SERVICE RULES AND REGULATIONS.
THOSE WOULD BE POSITIONS LIKE TEMPORARY NON-CAREER POSITIONS, MANAGEMENT POSITIONS, OR UM, INTERNS OR POSITIONS THAT BY DEFINITION IN THE CIVIL SERVICE RULES ARE UNCLASSIFIED AND THEN CLASSIFIED AS JUST THE OPPOSITE OF THAT.
THESE ARE POSITIONS THAT GO THROUGH A CIVIL SERVICE RECRUITMENT PROCESS SUBJECT TO THE CIVIL SERVICE RULES AND REGULATIONS.
DO THE VACANCIES OR ACTUALLY THE FTES REFLECT POSITIONS THAT ARE PAID PURELY BY GRANT FUNDING? YES, THAT'S CORRECT.
SO EMBEDDED IN THIS ARE, UM, UNBUDGETED POSITIONS BASICALLY BECAUSE, WELL, WITH GRANT FUNDING WE DON'T KNOW THAT WE'RE GOING TO GET A GRANT TO PAY FOR POSITIONS, NOT GENERAL FUND.
AND JUST TO CLARIFY, THERE ARE SOME GRANT FUNDED POSITIONS THAT ARE BUDGETED STRUCTURALLY, SUCH AS IN THE WORKFORCE DEVELOPMENT AND THE HEALTH FUND GROUP.
BUT AS FAR AS THIS ANALYSIS, IT IS BASED OFF BUDGETED FULL-TIME POSITIONS.
SO WE DO EXCLUDE THE, UH, PART-TIMES OR, UM, NON CAREERS AND ALSO ANY UNBUDGETED POSITIONS, THOSE WOULD NOT BE ACCOUNTED FOR IN THE FAKES KNEE.
UM, CAN YOU JUST GIVE A DEFINITION, UH, FROM PAGE FIVE 5 MILLION FOR A POSSIBLE TRANSFER OF FISCAL YEAR 24 INDIRECT COST PLAN COLLECTIONS BACK TO THE HEALTH FUND GROUP? YEAH.
UH, QUICK OVERVIEW FOR THE INDIRECT COST PLANS.
THIS IS THE, UH, CITY'S OVERHEAD COST AND THE GENERAL FUND FOR CENTRAL DEPARTMENTS LIKE, UH, FINANCIAL MANAGEMENT AND SUCH AS THE, UH, CITY ATTORNEY'S OFFICE.
THIS IS ALL LOOKED BACK AND CHARGED BACK OUT TO DEPARTMENTS AND I BELIEVE A TWO YEAR LOOK BACK.
SO TWO YEARS COST TO GO IS NOW BEING ALLOCATED TO DEPARTMENTS VIA COST TRANSFER FOR THOSE OVERHEAD SERVICES PROVIDED.
SO IN FY 24 THERE WAS A CHANGE IN THE METHODOLOGY OF THESE INDIRECT COST PLAN CHARGES, THESE OVERHEAD CHARGES, WHICH LOOKED AT GRANTS A LITTLE DIFFERENTLY.
SO THE, THE IMPACT ON GRANTS WERE CHANGED, WHICH ACTUALLY BENEFITS THE GENERAL FUND BECAUSE IT MAXIMIZES COLLECTIONS.
BUT ALSO THIS $5 MILLION SET ASIDE IS TO SAY THAT THERE IS POSSIBLE SUPPORT FOR THE HEALTH FUND GROUP AND THIS WOULD BE RETURNING A PORTION OF THE COLLECTIONS BACK TO THE HEALTH FUND GROUP.
BUT IT'S STILL BENEFITING THE GENERAL FUND WITH THIS NEW METHODOLOGY.
UM, THERE'S SETA ASIDES FOR UNFUNDED NEGOTIATED LABOR COSTS TO SUPPORT PROJECTED SHORTFALLS.
HOW MUCH IS THIS? DID YOU COVER THAT? UM, THE SET ASIDES FOR THE NEGOTIATED, UH, LABOR COSTS IN FY 24, WE HAVE ABOUT 11.2 MILLION, WHICH WAS ANTICIPATED TO FULLY FUND ALL THE INCREASES IN THE FY 24 BUDGET.
AT THIS TIME, PROJECTIONS LOOK STRONG THAT WE MAY BE ABLE TO PRESERVE THESE FUNDS AND IF SO, THEN THESE FUNDS WOULD HELP IMPACT OR COVER UNFUNDED NEEDS OR OUT YOUR SHORTFALLS.
BUT THIS IS A PRELIMINARY PROJECTION AND WE'LL HAVE TO RETURN TO, UH, COUNCIL AT YEAR END TO SEE IF THESE FUNDS CAN ACTUALLY BE PRESERVED BECAUSE, UH, WITH EARLIER PROJECTIONS, A LOT CHANGED.
WE HAD THIS SAME SCENARIO LAST YEAR WHERE IN FY 23 WE THOUGHT WE COULD PRESERVE SOME PLANNED RELEASES, BUT CAME AT YEAR END REALIZING WE NEEDED TO RELEASE THOSE TO BOUNCE THE, UH, THE FISCAL YEAR.
AND YOU SAID AS OF RIGHT NOW FOR 24 ESTIMATED 11.4, CORRECT.
UH, ROUGHLY AROUND 11.2 MILLION.
THIS, THIS IS EQUAL TO JUST THE BUDGET ADJUSTMENTS THAT WERE GIVEN IN THE GENERAL FUND FOR THE LABOR INCREASES FOR NEGOTIATED RAISES PAST THE ADOPTED BUDGET.
THEY WERE APPROVED PAST THE ADOPTED BUDGET.
MEASURE A WAS IMPACTED BY LOWER THAN BUDGETED REVENUES.
WE'RE PROJECTING A $2.7 MILLION SHORTFALL AS INFLATION HAS CONTINUED.
UM, HOW ARE WE HAVING MEASURE A REVENUE LOWER THAN BUDGETED? I'LL TAKE THAT ONE.
UM, SO WE FORECASTED INFLATION AND WE FORECASTED CONSUMPTION AND WE FORECASTED TAXABLE GOODS CONSUMPTION.
AND I WAS TOO OPTIMISTIC, IF YOU WANNA SAY INFLATION IS OPTIMISTIC ABOUT
[01:05:01]
HOW MUCH INFLATION WOULD, HOW FAST INFLATION WOULD CONTINUE, AND HOW MUCH, UM, TAXABLE GOODS PURCHASES THERE WOULD BE.SO WHILE WE UNDERESTIMATED ON PROPERTY TAX MM-HMM.
SO WE HAD SOME UNDERS AND OVERS AND WE WERE UNDER IN THIS FOR THE REASONS I JUST STATED.
WE WERE OVERESTIMATING, OVERESTIMATING, OVERESTIMATING IN THIS ONE FOR THOSE REASONS.
WELL, YOU WERE VERY POSITIVE, BUT YOU KNOW, THAT'S RIGHT.
SO, UH, ON PAGE EIGHT, GOING BACK TO OUR PREVIOUS, I'M SORRY, OUR PREVIOUS PRESENTATION, SOME OF THE NUMBERS JUST DON'T SEEM TO, THEY DON'T MATCH.
IS THERE A DIFFERENCE IN WHEN THINGS WERE CALCULATED? DO YOU WANT ME TO GIVE YOU SOME EXAMPLES OR IS THERE A DIFFERENT TIMEFRAME ON WHEN THESE WERE THESE, UH, PRESENTATIONS WERE MADE? AND IS THIS IN REFERENCE TO THE FY 25 PROPOSED BUDGET TABLE ON PAGE EIGHT? YES IT IS.
UM, SURE, YEAH, IF YOU HAVE A PREFERENCE.
SO LET'S LOOK AT, UM, SALES AND USE TAX, WHICH IS CURRENT PRESENTATION PAGE NINE.
IT SAYS WE HAVE A $2.5 MILLION, UM, CHANGE.
THAT'S THE, LET ME DO THIS ONE.
I HAD TO EAT SOME CROW ON THE FORECAST, SO, OH NO, I'M, NOW, NOW I GET, NOW I GET AN EASY ONE
UM, SLIDE NINE IS THE FISCAL YEAR TO FISCAL YEAR CHANGE.
THIS SLIDE IS NOT A MEASURE OF THE ACCURACY OF THE FORECAST.
IT'S WHAT HA IT'S WHAT HA WE'RE PROJECTING FROM FISCAL YEAR 24 REVENUE LEVELS TO FISCAL YEAR 25 REVENUE LEVELS.
AND SO SALES AND USE TAX IS ACTUALLY PROJECTED TO DECLINE BETWEEN FY 24 AND FY 25 FOR ALL THE, UM, INCREDIBLY PERSUASIVE REASONS THAT GERALDINE MENTIONED IN HER PRESENTATION.
THAT ANSWERS MY TOT TAX, I BELIEVE ALSO, HOLD ON.
UM, FINAL QUESTION, AND YOU MAY HAVE ANSWERED THIS ALREADY AND I I MISSED IT.
I'M JUST INTERESTED IN, UM, FROM PAGE FOUR ON THE, UM, SIGNIFICANT VACANCY SAVINGS TREND CONTINUES.
WHAT IS OUR VACANCY SAVINGS? HOW MUCH IS THAT? DID YOU ANSWER THAT? UM, ROUGHLY WHAT WE'RE SEEING RIGHT NOW ACROSS ALL DEPARTMENTS IN THE GENERAL FUND, WE ARE SEEING SAVINGS HAVE ACROSS OF ABOUT 14 MILLION IN DEPARTMENT BUDGET VERSUS, UH, ACTUALS.
THIS IS INCLUSIVE OF A FEW DEPARTMENTS THAT ACTUALLY ARE PROJECTING LOW OVERAGES AND SOME, A MAJORITY OF DEPARTMENTS, UH, PROJECTING SAVINGS LARGELY IN THE POLICE DEPARTMENT.
THANK YOU FOR THE PRESENTATIONS.
SEE MINE WERE EASIER THAN COUNCILWOMAN.
I THINK, UH, I WAS JUST CLARIFYING, WAS REPEATING BACK TO STAFF WHAT I HEARD FROM THEM.
THIS IS SO, YOU KNOW, IIII THINK MINE WAS EASIER.
UH, NO REASON ABOUT WHERE IT'S COMP AND THE IMPACT IT HAS ON VACANCIES OR, UH, UH, THE BUDGET IN TERMS OF WHAT WE HAD TO COST OUT.
HAS THAT BEEN, I MEAN HAS OUR WORKERS' COMP, UH, FREQUENCY GONE DOWN TO ALMOST A IN SIGNIFICANT LEVEL OR WERE YOU IT A DIFFERENT WAY? SO WE ARE STILL SEEING AN INCREASE IN, IN WORKER INJURIES, UH, ACROSS THE CITY RIGHT NOW.
AND SO WE ARE WORKING ON A NUMBER OF RE REDUCTION STRATEGIES TO TRY TO LOWER THAT.
UM, IT SORT OF BUNDLES IN WITH WHAT WE'RE SEEING IN GENERAL FROM THE RISK MANAGEMENT PERSPECTIVE WITH, UH, RISK INSURANCE COSTS, UM, WORKERS' COMPENSATION AND SOME OF THE OTHER INTERVENTIONS.
WE'RE LOOKING TO LOWER THOSE COSTS.
SO IT DEFINITELY IS A CONCERN.
THERE'S STILL A HIGH NUMBER OF CLAIMS ACTIVE GOING ON.
IT'S NOT LIKE WE'VE SEEN A HUGE REDUCTION IN, IN WORKERS' COMP ACTIVITY.
UM, BUT WE'RE TRYING TO MANAGE IT THE BEST WE CAN WITH CASE MANAGEMENT AND GETTING THOSE CLAIMS CLOSED AS QUICKLY AS POSSIBLE.
UH, THE OTHER THING WAS THAT AND, UH, COUNCIL MEMBER, UH,
[01:10:01]
DUGGAN ALLUDED TO IT, BUT I STILL HAVE A QUESTION ABOUT FTES.AND THE REASON I ASK THAT IS THAT THERE WAS A BRIEF COMMENT MADE ABOUT CONTRACT EMPLOYEES AND THEY ARE CONSIDERED FTE ONE, THE CONTRACT IS IN EXISTENCE SO THAT WHEN THE CONTRACT GOES AWAY, AWAY GOES THE FTE.
I'M NOT, I'M NOT TOO CLEAR ON HOW, HOW THAT, HOW THAT WORKS.
I MEAN, WE'RE, WE'RE, WE'RE IN THE MIDST, WE'RE IN THE, THE MIDST RIGHT NOW DEALING WITH FTES, ESPECIALLY WHEN IT COMES DOWN TO THE, TO WHAT'S AVENUE IN THE HEALTH DEPARTMENT.
BUT IT'S AN ONGOING ISSUE WITH OTHER DEPARTMENTS AS WELL.
COMMUNITY DEVELOPMENT HAS GRANTS THAT HIRE EMPLOYEES AND THEN WHEN THE GRANT RUNS ON THE POSITION RUNS OUT, UH, HEALTH HOUSE COMMUNITY DEVELOPMENT, REMEMBER, WELL DO THAT COME, COME TO MIND IMMEDIATELY.
BUT I KNOW THERE ARE OTHERS THAT ARE OUT THERE.
SO HOW, HOW IS THAT WE DO THAT? WHEN A GRANT PROGRAM IS A GRANT PROGRAM, SHOULD WE BE LOOKING AT HOW WE CATEGORIZE THOSE, UH, SLOTS AS OPPOSED TO OPPONENTS? I'M, CAN YOU JUST CLARIFY THAT ALL, CLARIFY MY CONFUSION.
YOU KNOW WHAT IT IS, BUT COME LOOK.
CAN YOU, CAN YOU GO, CAN YOU, UH, GET SOME, UH, CLARIFICATION ON THAT? WELL, CAN I, CAN I CHIME IN HERE? SO, UM, COUNCIL MEMBER DUG AND I WERE WHISPERING TOGETHER 'CAUSE WE'RE LIKE, I WAS LISTENING TO YOUR QUESTION.
I THINK IT, I I, I, IF I UNDERSTAND YOU CORRECTLY, COUNCIL MEMBER RANGA, WE'RE LOOKING AT THE CITYWIDE, UM, THIS IS SLIDE 16, RIGHT? SO WE'RE LOOKING AT THE CITYWIDE VACANCIES AND WE KNOW THAT THOSE FTES ARE MADE UP OF A COMPOSITE OF BUCKETS, RIGHT? SO SOME OF THOSE ARE DIFFERENT FUND GROUPS, SOME OF THEM, SOME OF THEM ARE POSITIONS THAT ARE FUNDED BY GRANTS.
AND I THINK WHAT WE'RE THINKING IS, YOU KNOW, WHAT WE HAVE PURVIEW OVER HERE.
THE BUDGET OVERSIGHT COMMITTEE IS AROUND BASICALLY IMPACTS TO THE GENERAL FUND.
AND SO SOMETHING I THINK WOULD BE BENEFICIAL FOR US IS THINKING ABOUT, OKAY, WE HAVE CITYWIDE VACANCIES EVERYWHERE, BUT WHAT ARE THOSE POSITIONS THAT ARE, THAT DIRECTLY IMPACT THE GENERAL FUND, RIGHT? LIKE, WHAT IS OUR VACANCY RATE FOR THOSE POSITIONS? AND I THINK THAT WOULD GIVE US A CLEAR UNDERSTANDING OF WHERE WE SIT.
WE CAN PROVIDE AT THE NEXT MEETING THE VACANCY RATES BY DEPARTMENT IN THE GENERAL FUND.
WOULD THAT BE HELPFUL? COUNCIL MEMBER ARANGO? THAT THAT'D BE, THAT EXACTLY IS, UH, THAT'S EXACTLY WHAT I WAS TRYING TO GO TOWARDS.
THANK WE, WE, WE WERE CLOCKING YOU OVER HERE.
AND THE OTHER REASON I BRING THAT UP IS BECAUSE I THINK THESE NUMBERS ARE SOMEWHAT MISLEADING WHEN IT COMES TO MULTI EQUIVALENTS AND THE VACANCY RATES BECAUSE THEY'RE NOT, THEY'RE NOT A, THEY A TRUE REFLECTION OF WHERE WE ARE WITH A GENERAL FUND.
UM, AND THEN SEEING NO QUESTIONS FROM THE REST OF MY COLLEAGUES, I'D LIKE TO OPEN IT UP FOR, UH, PUBLIC COMMENT.
IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME TO THE PODIUM NOW.
GOOD AFTERNOON, HONORABLE COMMITTEE.
I THOUGHT I WAS GONNA SPEAK ABOUT A NON AGENDIZED ITEM, BUT THIS, UH, VACANCY RATE, UH, TOPIC TIES RIGHT IN TO WHAT I WAS GOING TO SPEAK TO.
I'M A RE RECENTLY RETIRED 26 YEAR CITY EMPLOYEE THAT HAS A LOT OF RELEVANCE WITH WHERE I'M COMING FROM.
AND CURRENTLY I AM A BUSINESS REP FOR THE LARGEST WORK MEMBERS OF THE CITY WORKFORCE REPRESENTED BY THE INTERNATIONAL ASSOCIATION OF MACHINISTS.
SPECIFICALLY I'M REPRESENTING IN THIS TOPIC, 73 MEMBERS OF THE HEALTH DEPARTMENT THAT ARE ON THE CHOPPING BLOCK.
NOW I'M GOING TO, I HAD TO CHANGE MY, UH, TO GET SPECIFIC TO THE VACANCY RATE AND THE RAW NUMBERS I SAW UP THERE.
I'VE GOT 73 MEMBERS THAT ARE ABOUT TO LOSE THEIR JOB EFFECTIVE SEPTEMBER 30TH.
TWO OF THEM ARE HERE IN THE AUDIENCE IN RED SHIRTS WITH US.
[01:15:01]
SO I'M HERE TO ENCOURAGE, IF NOT IMPLORE THE BUDGET PROCESS TO ALLOCATE CORE FUNDING TO THE HEALTH DEPARTMENT AND MAYBE NOW AMEND THAT TO FIND OUT WHY, WHAT ARE THESE 155 VACANCIES THAT SOMEHOW, AND TAKE THAT VACANCY ACROSS THE CITY.AND THIS IS WHERE THE CITY EMPLOYEE GETS RELEVANT.
I'VE, YOU SEE THESE THINGS, NUMBERS FLYING LIKE THAT.
WE TALK ABOUT AMENDING CIVIL SERVICE BECAUSE THAT'S THE PROBLEM.
BUT I'M SEEING A LOT MORE COMPLE COMPLEX PROBLEMS HERE.
WHY CAN'T THE DEPARTMENT FIND A, A MATCH WITH THESE NOW KNOW THAT CLASSIFICATIONS AND THERE'S, THERE'S THAT, THOSE PROCESSES THAT STILL HAVE TO BE FOLLOWED.
I WAS HERE IN 2000 WHEN COMMUNITY DEVELOPMENT GOT IN A LOT OF TROUBLE FOR CALLING, UH, CITY WORKERS, UH, UH, CONTRACT, SPECIAL STATUS EMPLOYEES.
AND THEY HAD TO HIRE ALL OF THEM.
AND THEY HAD TO WORK OUT AN AGREEMENT WITH CIVIL SERVICE TO DO THAT.
BUT THEY DID, HIRED THEM, AND THEN THEY TESTED IN THE CIVIL SERVICE POSITIONS.
SO WE HAVE A PRECEDENT, THAT'S MY SOAPBOX ABOUT THAT TOPIC.
UH, BACK TO SORT OF WHAT I HAD, BACK TO WHAT I HAD PRESENTED.
UH, I WANNA REMIND THE FACT THAT THESE 73 POSITIONS ARE DEALING WITH A, ALL, A LOT OF OUR COMMUNICABLE DISEASES, TB, HIVM, PX, STD, SYPHILIS, MUMPS, MEASLES, CHICKEN POX, HEPATITIS, HEPATITIS B.
A LOT OF THESE ARE VERY RELEVANT NOW IN THIS CLIMATE, ESPECIALLY WHEN WE'VE GOT AN INTERNATIONAL EVENT ON THE HORIZON, THE COMPLEX AND GLORIOUS OLYMPICS.
IMAGINE WHAT'S GONNA BE FLOATING AROUND IN OUR COMMUNITY THEN IF WE'RE NOT POSITIONED FOR THAT.
NOW, IF WE DON'T HAVE THE MEDICAL CERTIFICATIONS TO DEAL WITH THESE, THAT'S A RECIPE FOR DISASTER.
SO I'LL CLOSE OUT BY SAYING I IMPLORE THE BUDGET COMMITTEE AND EVENTUALLY THE COUNCIL TO FIND A WAY TO MAKE THESE HEALTH DEPARTMENT POSITIONS PART OF THE CORE FUNDING AND NOT, AND SERVE, NOT JUST POSITIONS OF SERVICES.
'CAUSE THAT'S WHAT THEY'RE PROVIDING.
UM, I'LL POINT OUT THAT MOST OF THESE EMPLOYEES ARE RESIDENTS.
WHAT'S ONE OF THE KEY ELEMENTS OF THE, UH, THE MAYOR AND THE COUNCIL'S DIRECTION WITH THIS HIRING, UH, SHORTENING THE HIRING PROCESS, LOCAL HIRES, RESIDENTS, OR LOCAL HIRES? I'M ABOUT TO ASK YOU TO, WE ARE OUT OF TIME.
THAT'S, THANK YOU VERY MUCH FOR LISTENING.
HOPEFULLY MY WORDS RESONATE AND WE CAN GET SOMETHING DONE WITH THIS.
UM, WELL, I HAVEN'T BEEN TO A BUDGET MEETING SINCE LAST YEAR.
UH, BUT I AM HERE, UM, I'M GOING TO BRING THINGS DOWN TO THE GROUND LEVEL BECAUSE I'M HERE TO ADVOCATE FOR THE CLEAN TEAM.
UM, WE HAVE A REALLY COAT TAILING OFF OF HEALTH.
WE REALLY NEED TO KEEP THOSE PEOPLE, IT'S COME TO MY KNOWLEDGE THAT WE ARE LOOKING AT SIX TO 10 THAT WE'RE GONNA LOSE.
THEY'VE ALREADY BEEN TOLD, SOME OF THEM HAVE ALREADY BEEN TOLD THAT THEIR POSITIONS ARE GONNA BE CUT.
IF WE'RE GONNA HAVE A HEALTHY, SAFE COMMUNITY, WE HAVE TO HAVE THEM.
I LIVE ON AN ALLEY WITH 96 APARTMENT BUILDINGS BEHIND MY HOME.
YOU CAN ASK AL AUSTIN HOW MANY TIMES I'VE CALLED HIS OFFICE, HOW MANY TIMES I, HOW MANY POSTINGS I HAVE ON GO LONG BEACH TO TRY TO MITIGATE DUMPED ITEMS. PLUS I ALSO LIVE OFF THE ORANGE CORRIDOR, WHICH IS ANOTHER HUGE HIT PLACE.
SO I ALSO RUN A CLEAN TEAM, A VOLUNTEER CLEAN TEAM.
AND THERE ARE FIVE SISTER TEAMS THAT ALL WORK NORTH OF, UH, CAL HEIGHTS.
AND WE HAVE TAKEN, LITERALLY JUST OUR GROUP, HAVE TAKEN TONS OF TRASH OFF OF THE STREETS OF LONG BEACH.
WE WORK, SOME OF US, SOME OF US WORK EVERY DAY.
AND SOMETIMES WE DON'T EVEN HAVE ANY PLACE TO PUT THE TRASH, BUT WE REALLY NEED THE SUPPORT OF THE CLEAN TEAMS BECAUSE IF WE DON'T HAVE A TRASH BIN TO PUT THINGS IN, WHAT DO WE DO WITH IT? WE CALL VANESSA ACOSTA AND ASK HER, CAN THE, CAN YOU, CAN YOU NEGOTIATE WITH THE CLEAN TEAM TO HAVE THEM PICK UP WHAT WE'VE PICKED UP? SO IF WE WANNA HAVE A CLEAN, SAFE CITY, WE HAVE TO START AT THE GROUND LEVEL.
AND I KNOW THIS IS, WE'RE TALKING ABOUT BIG NUMBERS, YOU KNOW, I'M A FORMER TEACHER, SO I UNDERSTAND PENSIONS, BUT WHAT I DON'T UNDERSTAND IS NOT LOOKING AT THAT FIRST.
WE REALLY NEED TO LOOK AT THE HEALTH AND SAFETY OF THE COMMUNITY BEFORE WE LOOK AT ANYTHING ELSE, IN MY OPINION.
[01:20:01]
UM, LIKE I SAID, I'M ON THE GROUND DOING THE WORK.SO, BUT WE NEED TO SUPPORT OUR CLEAN TEAM BECAUSE THEY'RE THE BACKBONE.
THEY ARE THE HEAVY LIFTERS FOR US.
THEY JUST CLEANED OUT AN AREA FOR US TODAY IN MY NEIGHBORHOOD, IN FACT.
SO, UM, ANYWAY, I'M JUST HERE TO ADVOCATE FOR THEM.
WE, WE HAVE TO HAVE THEM, HONESTLY.
MY NAME IS RILEY CARPENTER AND I'VE BEEN AN EMPLOYEE WITH THE CITY FOR FOUR YEARS.
I'M CURRENTLY EMPLOYED WITH THE COMMUNICABLE DISEASE SURVEILLANCE AND CONTROL.
I'M SORRY, CAN YOU HOLD ON A SECOND? IS, IS HER MICROPHONE ON TESTING? NOT ON, IT'S NOT ON.
MY NAME IS RILEY CARPENTER AND I'VE BEEN AN EMPLOYEE WITH THE CITY OF LONG BEACH FOR THE PAST FOUR YEARS.
I'M CURRENTLY EMPLOYED WITH THE COMMUNICABLE DISEASE SURVEILLANCE AND CONTROL DIVISION AS AN EPIDEMIOLOGY PROGRAM SPECIALIST.
AND I'M HERE REGARDING THE LOSS OF FUNDING OF ABOUT SE 70 INDIVIDUALS, INCLUDING MYSELF AT THE HEALTH DEPARTMENT.
THE MAJORITY OF THESE INDIVIDUALS, INCLUDING MYSELF, ARE CAREER STAFF, MEANING THAT WE ARE NOT TEMPORARY OR NON-CAREER.
EVEN IF JOBS ARE FOUND ELSEWHERE IN THE CITY FOR THESE INDIVIDUALS, IT STILL LEAVES BEHIND A CRITICALLY UNDERSTAFFED TEAM TO PERFORM THE DUTIES NECESSARY FOR ACCREDITATION AND TO FULFILL REGULATORY RESPONSIBILITIES.
THIS IS NOW OUR THIRD ROUND OF LAYOFFS OR LOSS OF FUNDING SINCE 2022.
WITH ONGOING OUTBREAKS SUCH AS THE TUBERCULOSIS OUTBREAK AND LARGE UPCOMING EVENTS SUCH AS THE 2028 OLYMPICS, WE NEED TO INVEST IN PROTECTING OUR COMMUNITY FROM THE THREAT OF COMMUNICABLE DISEASE.
AND WE CANNOT AFFORD TO LOSE MORE STAFF WHEN COMMUNICABLE DISEASE RESPONSE AND INTERVENTIONS ARE SUCCESSFUL.
OUR IMPACT OFTEN GOES UNNOTICED.
OUR INVISIBILITY IS A TESTAMENT TO OUR EFFECTIVENESS.
WHEN COMMUNICABLE DISEASE RESPONSE IS INSUFFICIENT.
OUTCOMES CAN BE DEVASTATING FOR COMMUNITY MEMBERS, INCLUDING SEVERE ILLNESS AND EVEN DEATH.
TO ENSURE THE CONTINUED HEALTH AND SAFETY OF OUR COMMUNITY, WE ARE REQUESTING YOUR SUPPORT FOR INCREASED AND SUSTAINED FUNDING IN THE VITAL DUTIES WE PERFORM.
THANK YOU FOR TAKING THE TIME TO LISTEN TO MY STORY AND I HOPE YOU'LL SUPPORT LONG BEACH HEALTH STAFF.
UH, MY NAME'S ELIZABETH MARQUEZ AND I'M A SENIOR EPIDEMIOLOGIST WITH THE COMMUNICABLE DISEASE SURVEILLANCE AND CONTROL DIVISION.
AND I'M HERE REGARDING THE LOSS OF FUNDING FOR MYSELF AND 70 CO COWORKERS EFFECTIVE SEPTEMBER 30TH.
UM, AND THIS IS DUE TO THE HEAVY RELIANCE ON GRANT FUNDS, UH, TO SUPPORT OUR HEALTH DEPARTMENT.
AND THIS CONTINUOUSLY JEOPARDIZES THE ESSENTIAL PROGRAMS THAT THREATEN THE HEALTH OF THE COMMUNITY.
UM, THE CITY MUST INVEST A AND SUSTAIN FUNDING FOR THE HEALTH DEPARTMENT.
UM, ADDITIONALLY, I'M HERE TO HIGHLIGHT, UH, FIVE PROGRAMS THAT WILL, UM, EXPERIENCE SIGNIFICANT CUTS, INCLUDING THE DISABILITY ACCESS AND FUNCTIONAL NEEDS PROGRAM EPIDEMIOLOGY, HEALTHCARE ACQUIRED INFECTIONS, COMMUNICABLE DISEASE INVESTIGATIONS, AND VITAL RECORDS, WHICH TOGETHER ARE, ARE AT RISK OF LOSING OVER 75% OF THEIR STAFF, ALL OF WHICH ARE NOT NON-CAREER.
THEY'RE THERE WE'RE SUPPOSED TO BE CAREER STAFF.
UM, AND OVER THE PAST THREE YEARS, WE HAVE RESPONDED TO, UM, THREE PUBLIC HEALTH EMERGENCIES, INCLUDING COVID-19 OCS AND TUBERCULOSIS.
UH, WITHOUT, UH, ADEQUATE FUNDING AND STAFFING, WE WILL NOT BE ABLE TO TRACK PREVENT, UM, EMERGING, UH, MULTI-DRUG RESISTANT INFECTIONS, INCLUDING, UM, INFECTIONS AFFECTING, UM, OUR SKILLED NURSING FACILITIES AND ALSO OUR YOUTH.
UM, MULTI-DRUG RESISTANT GONORRHEA IS SPREADING.
AND, UM, CONSIDERING THAT, UH, LONG BEACH SPECIFICALLY HAS A SEC, IS THE SECOND HIGHEST RATE OF INFECTIONS IN ALL OF CALIFORNIA.
IT, IT'S PRETTY SCARY BECAUSE IT'S COMING.
UM, WE WILL NOT BE ABLE TO RESPOND TO FOODBORNE OUTBREAKS THE WAY WE DO NOW.
WE WILL NOT BE ABLE TO SUPPORT OUR DAYCARES AND OUR SCHOOLS WHEN THEY HAVE OUTBREAKS.
WHEN PARENTS ARE CALLING US, PARENTS WON'T BE CALLING US, PARENTS WILL BE CALLING YOU.
UM, WE WON'T BE ABLE TO PREPARE FOR, UM, EMERGING DISEASES INCLUDING AVIAN INFLUENZA, DENGUE MEASLES, AND WE'LL BE UNABLE TO PREPARE FOR EVERYTHING NEEDED FOR THE 2028, UM, ALLEY OLYMPICS.
UM, CONSIDERING THE TREMENDOUS AMOUNT OF INDIVIDUALS WHO WILL COME HERE TO THE CITY OF LONG BEACH, UM, THE PARIS OLYMPICS SAW, UM, 15.3 MILLION VISITORS DURING THE TIME PERIOD LEADING UP TO THE OLYMPICS.
UM, IT THEREFORE INCREASING SIGNIFICANT RISK HERE IN LOS ANGELES AND LONG BEACH.
UM, THE EPIDEMIOLOGY TEAM WILL NOT BE ABLE TO PRODUCE, UM, THE DATA THAT THE DEPARTMENT AND THE CITY NEEDS TO APPLY FOR THE GRANTS THAT WE ARE EXPECTED TO RELY ON.
WE WILL NOT BE ABLE TO SUSTAIN, UH, THE BASIC MINIMUM REQUIREMENTS TO MAINTAIN ACCREDITATION, UM, AND REGULATORY REQUIREMENTS.
UM, AND LASTLY, I SEE THERE'S 153, UM, VACANCIES
[01:25:01]
THAT ARE OPEN, BUT IN REALITY, IF YOU LOOK AT THE JOB POSTINGS THAT ARE AVAILABLE WITHIN THE HEALTH DEPARTMENT, IT'S A QUARTER OF, THAT'S A HANDFUL OF THEM.UM, SPECIFICALLY IN MY DEPARTMENT, UM, FOR, TO ONBOARD A NON-CAREER OR A, A NON, UM, UH, PERMANENT CLASSIFIED POSITION, UM, IT TOOK NINE MONTHS AND THAT'S THE TIME THAT I DID THE JOB OF TOO.
UM, SO IT, IT'S MORE THAN JUST A CLASSIFIED UNCLASSIFIED.
UM, IT, THERE'S A SIGNIFICANT PROBLEM AND ONE OF MY ASKS IS THAT, UM, THE CITY, UM, WORK WITH PERSONNEL SERVICES, UM, HR AND FIGURE OUT WHAT WE CAN DO TO BRIDGE THE, THE, UM, THE MISSING, UM, THE VACANT POSITIONS AND THE POSITIONS THAT ARE TO BE LOST AND, UM, MAKE THOSE, UM, MAKE THOSE WHOLE.
UM, COUNCIL MEMBER RANGA, UH, THANK YOU CHAIR.
UH, CONGRATULATIONS ON YOUR RETIREMENT
I DIDN'T KNOW YOU WERE RETIRED RECENTLY.
I CAN FIND A BETTER WAY TO SPEND MY TIME, BUT I'M HERE TOO.
SO, BUT I JUST WANT EMPHASIZE THAT OVER THE LAST FEW YEARS WE'VE REALLY COME TO APPRECIATE THE WORK THAT OUR HEALTH DEPARTMENT DOES.
UM, WE BECOME TO UNDERSTAND THAT MUCH OF THE WORK THAT THEY DO IS ESSENTIAL WORK.
THEY BECOME ESSENTIAL EMPLOYEES.
SO WE NEED TO FIND MR. BUDGET MANAGER A WAY THAT WE CAN KEEP THESE EMPLOYEES AND KEEP THEM MAINTAINING THE ESSENTIAL WORK THAT THEY DO FOR THE CITY.
IT IS A SHAME THAT WE HAVE TO LET THEM GO THERE.
DISCUSSION EARLIER ABOUT THE EFFECTS, THE VLF HAD THE VEHICLE LICENSE FEE, AND WHEN I FIRST CAME TO THE HEALTH DEPARTMENT, THAT WAS CUT.
THANK YOU ARNOLD SCHWARZENEGGER.
BUT IT WAS MY, MY TASK AT THAT TIME TO DO EXACTLY WHAT WE'RE DOING NOW, TRY TO FIND POSITIONS FOR BASICALLY POSITIONS THAT THESE INDIVIDUALS PROVIDED, SUCH AS HIV COUNSELING AND REFERRALS STILL GOING ON.
SO MEAN AFTER 20 YEARS, WE STILL HAVE THAT NEED.
SO WHY ARE WE STRUGGLING AGAIN EVERY YEAR TO FUND THESE POSITIONS WHEN THEY SHOULD BE FULLY FUNDED? AND THAT'S WHY WE'LL CONTINUE TO FIGHT WELL ABOUT FIGHT, BUT AT LEAST PROMOTE THE CONTINUANCE OF THE HEALTH DEPARTMENT AND ITS INSTITUTIONALIZATION INTO THE CITY FAMILY.
THANK YOU, COUNCILMAN MERANGA.
UH, YOUR SENTIMENTS ARE, ARE WELL TAKEN.
UH, AGAIN, TWO OF YOU THAT SPOKE ARE EPIDEMIOLOGISTS LIKE MYSELF.
I RECOGNIZE THE IMPORTANCE, UM, THE CRITICAL IMPORTANCE ACTUALLY THAT YOU HAVE IN OUR HEALTH DEPARTMENT, UM, AND THE SPECIALIZED SKILL SETS THAT WE NEED.
UM, I'LL SHARE AN ASIDE, UH, BACK IN, WAS IT 20 20, 20 21, I ACTUALLY WAS WORKING WITH OUR, OUR FORMER HEALTH DEPARTMENT DIRECTOR TO RECRUIT YOU ALL.
UM, BECAUSE AT THE TIME WE ONLY HAD ONE CITY EPIDEMIOLOGIST AND WE RECOGNIZED IN THE MIDDLE OF A PANDEMIC, UH, THAT WE WERE DOING OUR CITY A DISSERVICE TO BE HONEST.
UM, AND SO IT WAS HIGHLY NECESSARY TO RECRUIT YOU ALL RIGHT? AND TO RETAIN YOU ALL.
UM, PLEASE KNOW THAT WE ARE AS COUNCIL MEMBERS, WE'RE, YOU KNOW, HAVING CONVERSATIONS WITH OUR FOLKS IN BUDGET, OUR CITY MANAGER'S OFFICE.
UM, YOUR, YOUR DIRECTOR IS ACTUALLY AN EXCELLENT ADVOCATE FOR YOU.
ALL RIGHT? AND SO PLEASE KNOW THAT WHAT YOU ARE SAYING AND SHARING WITH US IS NOT, IS NOT ON DEAF EARS.
UM, IT'S NOT FALLING ON DEAF EARS, RIGHT? AND WE ARE ALL WORKING TO FIGURE OUT WAYS TO GET YOU PLACED, RIGHT? UM, BUT I KNOW THIS IS FRUSTRATING, RIGHT? THIS, I CAN SIT UP HERE AND SAY LOTS OF THINGS.
UM, BUT I'M NOT THE ONE WHO GOT A, GOT A LAYOFF NOTICE.
UM, SO, BUT PLEASE KNOW THAT WE ARE DILIGENTLY WORKING ON THAT.
AND THANK YOU FOR TAKING YOUR TIME TO COME DOWN HERE, UM, AND SHARE YOUR STORIES WITH US.
UM, THAT BEING SAID, UM, WE TAKE A, OH, LET'S DO A VOTE FOR RECEIVING FILE CHAIR.
'CAUSE MY, MY TERMINAL DOESN'T WANNA ACT RIGHT.
CAN YOU READ THE, UH, THE NEXT AGENDA ITEM?
[01:30:03]
ITEM FOUR IS A RECOMMENDATION TO RECEIVE AND FILE A PRESENTATION ON GROW LONG BEACH IN ADDITION TO REVENUE OPPORTUNITIES AS A PART OF THE NOVEMBER, 2024 BALLOT.[4. 24-54476 Recommendation to receive and file a presentation on Grow Long Beach, in addition to revenue opportunities (inclusive of the proposed regional tax) as a part of the November 2024 Ballot. Suggested Action: Approve recommendation. ]
UM, UH, I'D LIKE TO MAKE A, I'D LIKE TO MAKE A MOTION TO ACTUALLY LAY THIS PRESENTATION OVER TO THE SEPTEMBER 3RD MEETING.'CAUSE I SEE THAT WE ARE ALREADY OVER TIME AND I WANNA ALLOW OUR DIRECTOR OF ECONOMIC DEVELOPMENT, UM, TIME TO PRESENT AND FOR US TO RESPOND.
CAN I GET A SECOND ON THAT? RIGHT HERE WE ARE.
IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON LAYING THIS ITEM OVER, PLEASE COME TO THE PODIUM NOW.
YOU LIKE TO GO AHEAD AND TAKE A VOTE, PLEASE.
UH, CAN WE GO TO GENERAL PUBLIC COMMENT? WE, WE STILL HAD ITEM FIVE.
OH, OH, DO WE HAVE TWO? WE HAD TWO.
NO, THAT'S JUST, OH, UM, DID YOU WANNA LAY THIS ITEM OVER AS WELL? ARE WE LAYING THE NEXT ONE OVER TOO? WE CAN.
IT'S JUST, UH, INFORMATION PROVIDED FROM LAST WEEK'S FOLLOW UP, SO THERE'S NO REPORT OR PRESENTATION.
SO THEN WE CAN GO AHEAD AND DO THAT ITEM AND THEN GET IT DONE.
SO THEN LET'S DO THE, UM, THE REPORT.
SO LET, LET ME GO AHEAD AND DO THIS, THE
WE'RE GONNA DO THE ITEM FOR ITEM FIVE.
ITEM FIVE IS A RECOMMENDATION TO RECEIVE AND FILE A LIST OF FOLLOW-UP ITEMS FROM THE BUDGET HEARINGS AND OUR BUDGET OVERSIGHT COMMITTEE MEETINGS.
[5. 24-54477 Recommendation to receive and file a list of follow-up items from the Budget Hearings and/or Budget Oversight Committee meetings. Suggested Action: Approve recommendation. ]
OKAY, PLEASE.THIS IS JUST SOME INFORMATION PROVIDED FROM THE LAST, UH, BUDGET OVERSIGHT COMMITTEE MEETING ON AUGUST 6TH TO, TO COVER, UH, FOLLOW UP QUESTIONS ABOUT COMMUNITY ENGAGEMENT AND A CLARIFICATION ON A SLIDE WITHIN THE, UH, LONG BEACH RECOVERY ACT PRESENTATION.
UM, DID BOTH COUNCIL MEMBERS, DID YOU BOTH RECEIVE THAT DOCUMENT? ANY QUESTIONS? OKAY.
UM, WE CAN GO AHEAD AND TAKE PUBLIC COMMENT.
IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME TO THE PODIUM NOW.
UM, LET'S GO AHEAD AND TAKE A VOTE TO RECEIVE AND FILE.
NOW WE CAN TAKE, NOW WE CAN TAKE GENERAL PUBLIC COMMENT,
NO GENERAL PUBLIC COMMENT, DEAR.
[PUBLIC COMMENT Opportunity to address the Budget Oversight Committee on non-agenda items. Each speaker is limited to three minutes to make their comments unless extended by the Chair.]
THANK YOU.I JUST WANTED TO FOLLOW UP ON SOMETHING WE JUST TALKED ABOUT.
SOMETHING YOU PROBABLY ARE NOT AWARE OF, BUT OF THOSE, UH, VOLUNTEER, UH, CLEAN GROUPS, WHICH I'M A PART OF, AND MY WIFE HAS RUN, UH, ONE FOR SOME TIME, UM, THEY WEIGH EACH BAG THAT THEY, THEY TAKE OFF THE STREET AND IT'S ANNUALLY, IT'S A, IT'S SOMEWHERE BETWEEN 12 AND 14 TONS THAT'S VOLUNTARY.
AND, UH, IN OTHER WORDS, WE'RE JUST HERE TO ADVOCATE FOR THE CLEAN TEAMS, UH, TO MAKE SURE THAT THEY'RE INCLUDED.
JUST LIKE WITH THE HEALTHCARE, I MEAN, SO NEEDED.
THEY ARE, YOU KNOW, ESSENTIAL WORKERS.
AND TO TAKE THOSE OFF THE STREET CAN HURT THE, UH, THE MORALE OF THE VOLUNTEERS.
HEY MAN, LOOK WHAT WE'RE DOING.
I MEAN, WHERE WOULD THAT, WHAT, WHAT WOULD THEY, OUR STREETS LOOK LIKE? WE KNOW WHAT THEY LOOK LIKE NOW.
WHAT WOULD THEY LOOK LIKE WITHOUT ALL THESE VOLUNTEERS AND TO TAKE THESE, UH, UH, WORKERS OFF THE STREET? UM, I, I WOULD BE AN ABSO I MEAN, TO HAVE THEM LOSE THEIR POSITIONS WOULD BE AN ABSOLUTE, UH, I, I THINK DISASTER FOR THE CITY.
SO ANYHOW, JUST WANTED TO THROW THAT OUT.
DO WE HAVE ANY ADDITIONAL PUBLIC COMMENT? SEEING NONE, I'M GONNA CALL THE MEETING ADJOURNED.