* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. SO [00:00:01] THE ADVISORY COMMISSION FINANCE COMMITTEE, THURSDAY, OCTOBER 9TH. COMMISSIONER, I'M HERE. I'M, WE HAVE THE AGENDA CALL. SO MOVED. THANK YOU. LET'S TAKE A VOTE. THOSE IN ATTENDANCE. LET'S A FAVOR. AYE. AYE. RECOMMENDATION AND NEXT FINANCE COMMITTEE OF JULY 10TH. ANY COMMENTS FROM THE COURT? SEEING NONE. MOVING TO AGENDA ITEM TWO, WHICH RECOMMENDATION QUARTERLY EXPEND AND THE IS TO APPROVE TO. GOOD AFTERNOON. JUST FINISH THAT. OKAY. IS IT WORKING? HELLO? HELLO? YES. OKAY, GOOD AFTERNOON. THIS IS THE FISCAL YEAR, FOURTH QUARTER MARINA FUND FINANCIAL UPDATE. I'VE JUST HANDED OUT A FINANCIAL PACKET AND I'LL JUST GIVE YOU A QUICK OVERVIEW OF WHAT'S IN THE PACKET. THE FIRST PAGE IS THE SUMMARY WHERE WE'LL BE FOCUSED ON TODAY. THE SUBSEQUENT PAGES ARE FINANCIAL REPORTS THAT FEED THE DATA INTO THE SUMMARY. SO LET'S HEAD BACK TO THE FIRST PAGE. ALRIGHTY. SO JUST A QUICK OVERVIEW OF WHAT WE HAVE HERE. THE COLUMNS, WE'LL GO FIRST. WE HAVE THE LAST THREE FISCAL YEARS ACTUALS. IN THE NEXT COLUMN WE HAVE THE ADJUSTED FISCAL 20 FISCAL YEAR 25, UH, ADJUSTED BUDGET. THEN WE HAVE FISCAL YEAR, 25 YEAR TO DATE ACTUALS. AND THEN WE HAVE THE FISCAL YEAR 26 ETC. THEN I HAVE A COUPLE OF CAVEATS ALSO. FISCAL YEAR 25 ENDED ON SEPTEMBER 30TH. THE ACTUAL BOOKS FOR THIS FISCAL YEAR DO NOT CLOSE UNTIL THE MIDDLE OF DECEMBER. SO THE OVERWHELMING MAJORITY OF REVENUES AND EXPENSES ARE HERE, BUT THERE IS STILL ROOM FOR A LAST MINUTE TRANSACTION. IN OUR NEXT FINANCIAL UPDATE MEETING, UH, IN JANUARY, I'LL HAVE THE FINAL NUMBERS FOR FISCAL YEAR 25. ALSO SINCE I'M ON IT FISCAL YEAR 26, ETC. THIS RIGHT NOW, BECAUSE FISCAL YEAR 26 JUST STARTED AS OF OCTOBER THE FIRST. SO THIS IS JUST THE BASE BUDGET. THIS IS JUST THE BEGINNING STARTING POINT. IT DOESN'T INCLUDE ANY OF BUDGET ADJUSTMENTS OR ANYTHING ELSE. IT'S JUST STRAIGHT OUT THE GATE IN THE NEXT QUARTER MEETING. I THINK THAT MAYBE THERE'LL BE UPDATES WOULD BE MORE ACCURATE TO REFLECT AND THAT WILL HAPPEN WHEN YOU SAID, UM, WELL ACTUALLY THE BUDGET ADJUSTMENTS CAN HAPPEN THROUGHOUT THE YEAR AT DIFFERENT POINTS OF THE YEAR, BUT WE SHOULD AT LEAST HAVE THE FIRST ONE BY THE NEXT YES. BY THE NEXT FINAL. OKAY. SO TODAY WE ARE GOING TO FOCUS ON THE FISCAL YEAR TO DATE ACTUALS AND WE WILL START AT THE TOP LEFT WHERE IT SAYS GROSS REVENUES AND JUST WORK OUR WAY DOWN. SO WE'LL START WITH SLIP REVENUE FOR ALTO BAY MARINA, $14,290,828. THE SLIP COMBINED SLIP REVENUE FOR SHORELINE AND RAINVILLE MARINAS IS $13,917,473, GIVING US A GRAND TOTAL OF $28,208,000, 208,301. ON TOP OF THAT REVENUE WE ADD IN THE [00:05:01] RENTALS AND CONCESSIONS, WHICH IS $2,177,758. AND OUR FINAL PIECE OF REVENUE IS OTHER REVENUE, AND THAT TOTALS $2,385,676 FOR A TOTAL GROSS REVENUE AMOUNT OF 32,000,007 70. ANY QUESTIONS AT THIS POINT AHEAD? I'M STRUCK BY THE NUMBER, YOUR OTHER REVENUE MM-HMM . IN THE FISCAL YEAR 25 ADJUSTED BUDGET. OH, THE 1.6 IN THE INCREASE IS THAT, THAT'S CONFUSED. UH, YEAH, THAT HAPPENS A LOT. THAT'S JUST, UM, OUR BASE BUDGET THAT THEY PUT IN. IT DOESN'T OF, OF THE ACTUAL REVENUE. IT DOESN'T, THAT'S HOW MUCH THEY EXPECT US TO GET, BUT WE ALMOST ALWAYS EXCEED. AND THEN I'M NOTICING JUST THE YEAR 2232. MM-HMM . VERSUS YEAR TO TAKE AFTERWARDS. FISCAL YEAR 22 ADDITION. YEAH. JUST GO BACK BY THREE YEARS. OH, WOULD THAT, WOULD THAT REFLECTED SOME COVID BUSINESS OR BUSINESS? YEAH, I WOULD THINK SO. YES. YES, I WOULD THINK SO. YEAH, BECAUSE THAT'S, THAT WAS AT END OF COVID, RIGHT? YEAH. AND ALSO THAT ALSO PROJECTS OUR CONCESSIONS. YES. IN 2000 2022, WE HAVE ONE CONCESSION. THIS YEAR WE HAVE ALL FIVE. THAT MAKES A BIG DIFFERENCE. NO PROBLEM. NOW ONTO THE EXPENSES, UH, FOR FISCAL YEAR, 25 YEAR DATE MAINTENANCE, WE HAVE IT IS, OH MY GOODNESS, A LITTLE DARK. OKAY. $5,398,995. NEXT WE HAVE PARKS AND RECREATIONS OPERATIONS, $6,858,224. THEN WE HAVE MARINE SAFETY, WHICH IS OUR LIFEGUARDS $3,997,569. AND WE HAVE MARINE PATROL, WHICH IS OUR SAFETY. UH, THAT'S $3,243,804. THEN WE HAVE OTHER EXPENSES THAT DON'T FALL ANY OF THE, OF THE PREVIOUS CATEGORIES. THAT'S 3,278,254. LAST BUT NOT LEAST, WE HAVE OUR CAPITAL IMPROVEMENT PROJECTS, WHICH ARE NOT TO BE INCLUDED IN OUR EXPENSES, THAT'S WHY IT'S NEGATIVE FOR A GRAND TOTAL OF EXPENSES OF 21,663,292. THIS GIVES US NET REVENUES OF 11,108,444. OUT OF THE NET REVENUES, WE PAY OUR BOND DEBT SERVICE, WHICH IS $7,502,963. THE REMAINING BALANCES IS $3,605,481. GIVEN US THE FINAL DEBT SERVICE COVER RATES RATIO OF 1.48. AND LIKE I SAID, UP BEFORE, UH, FISCAL YEAR 26 ETC, THAT'S JUST WHERE WE STAND RIGHT NOW. AND THERE ARE NO ACTIONS AT THIS POINT. ANY QUESTIONS? MM-HMM . WE HAD CONVERSATION. CAN YOU TELL ME HOW DOES IT AT ALL THE REFINANCE? YES AND NO. SO, SO THIS YEAR, UH, THE, THE COSTS FOR THE REFINANCING YES. PLAY IN A BIT INTO OUR OVERALL AFTER ACTION FOR FFY 25. BUT THAT IS GOING TO BE ADJUSTED AT THE FINANCIAL MANAGEMENT LEVEL, UH, THROUGH THIS END OF YEAR BUDGET PROCESS. OKAY. SO THE NUMBER THAT YOU SEE, THAT 1 4 8, UH, IS WHAT WE SEE IN OUR FINANCIAL REPORTING SYSTEM. AND THEN OBVIOUSLY AT A HIGHER LEVEL, CITY LEVEL FINANCIAL MANAGEMENT, TREASURY, UH, THEY HAVE A HIGHER LEVEL WHERE THEY'LL MAKE SOME ADJUSTMENTS THAT [00:10:01] THAT MAY TINKER WITH THAT DEBT SERVICE RATIO UP OR DOWN A LITTLE BIT. BUT WHERE YOU SEE IT RIGHT THERE IS USUALLY WHERE PEAK OUT, GIVE OR TAKE A POINT OR TWO. THANK YOU. THAT FROM THE, ON THE MARINE PATROL, JUST LOOKING BACK TWO YEARS AND THE INCREASE RELATIVELY A MILLION, IS THAT, DOES THE STAFFING OR THE INFRASTRUCTURE, THE NEW VEHICLES, IS THAT ALL MORE MARINE CONTROL? WE'RE STILL, WE'RE STILL WORKING TO THAT. RIGHT? IF YOU LOOK AT THE FY 26 PORTION'S GONNA GET TO THAT UH, PORTION. YOU WANT TAKE THEM THROUGH THAT OR DO YOU WANT ME TO THE FY 26? YEAH. SO RIGHT NOW, IF YOU LOOK AT FFY 26 MARINE PATROL POLICE PIECE, RIGHT, IT'S UH, 4.3, RIGHT? BUT IF YOU LOOK AT THE ACTUALS FOR FY 25, IT'S 3.2, RIGHT? SO THAT LOOKS TO BE A LOT OF LABOR, UH, WHICH, WHICH MEANS THAT THEIR CONTRACT, UH, INCREASES PLAY INTO THAT. UH, BUT WE'RE LOOKING A LITTLE BIT DEEPER INTO THAT. YES. UH, THAT IS A, A BIGGER INCREASE RIGHT. THAN WE NORMALLY SEE, RIGHT? SO WE'LL PROBABLY HAVE A LITTLE BIT MORE INFORMATION ON THAT IN OUR NEXT FINANCE, UH, SUBCOMMITTEE MEETING. GREAT, GREAT. OKAY. THANK EVEN THOUGH THEIR BUDGET IS HIGH, THEY DIDN'T EVEN SPEND THAT. YEAH. SO I HAVE NO, I HAVE NO OTHER QUESTIONS. I HAVE NO OTHER QUESTIONS. UH, MADAM CHAIR, IT'S, UH, AGAIN, WE'LL KNOW MORE IN JANUARY. I THINK THAT'S ONE MORE QUESTION WILL COME UP. UM, BUT RIGHT NOW I THANK YOU FOR YOUR GIVING US THE INFORMATION THAT WE HAVE. AGENDA ITEM IS TO FOLLOW UP FOR ANY ITEMS RELATED TO MADAM CHAIR. I, IF I CAN, IF I CAN BRING SOMETHING UP. IT WAS INTERESTING. I'M ATTENDING THE EOC MEETINGS, UH, IN LOS ANGELES AND DURING FIFA THAT'S COMING UP NEXT YEAR. AND ALSO THE OLYMPIC CENTER COMING UP. THE ESTIMATED AMOUNT OF EXTRA POLICE AND SECURITY IS GONNA BE 72,000 MORE PEOPLE, UM, SURROUNDING THE OLYMPICS. AND I'M JUST WONDERING, I KNOW WE LOOK AT THE BUDGETS GOING IN 20 26, 20 27, BUT THAT'S SOMETHING THAT I'D ALSO LIKE TO SEE BECAUSE SO MANY OF THE EVENTS ARE IN OUR PORTFOLIO. UM, THEY'RE GOING TO BE ON THE WATER WASTES AND THINGS OF THAT NATURE. I JUST PUT THAT OUT SO WE HAVE IT ON RECORD THAT WE WOULD DEFINITELY LIKE TO KNOW HOW ARE THEY GONNA BOARD, UM, AND, AND THAT, THAT'S WORRISOME RIGHT NOW WHEN WE'RE DOWN ALMOST 360 POLICE OFFICERS RIGHT NOW IN THE CITY OF BEACH. UM, AND TO HAVE THAT GENERATED THAT MUCH MORE WITH AN INFLUX OF BETWEEN 400,000 PEOPLE AND PLUS COMING IN DAILY TO THE OLYMPICS, AND WE HAVE A CITY OF, I THINK WE HAVE 3000, UH, CURRENT RESIDENTS AND WE'RE WORRIES ME AND IT SHOULD WORRY US ALL. SO I'D JUST LIKE TO PUT THAT ON RECORD SO THAT'S SOMETHING WE CAN LOOK AT IN THE FUTURE. THANK YOU. NO FURTHER, UH, COMMENTS. THANK YOU. UM, AND ON THAT TOPIC, I SUSPECT THAT THERE WILL ADDITIONAL BUDGETARY PLAN FOR RESPONSIBILITY. BUDGETARY OF LAY PERSON RECOGNIZES THAT THERE'S NORMAL OPERATIONS THAT YOU ALL ARE RESPONSIBLE FOR. HOW DO FORTHCOMING SIGNIFICANT SPECIAL EVENT IMPACT YOUR BUDGET? [00:15:02] SO RIGHT NOW OUR, OUR OLYMPIC COMMITTEE THAT'S, UH, BASED OUT OF THE CITY MANAGER'S OFFICE, UH, IS WORKING WITH DEPARTMENTS CITYWIDE TO, TO ACCUMULATE AND COMPILE NORMAL AND CUSTOMARY SERVICES AND THE COSTS THEREOF. AND THAT'S NOT JUST FOR CITY SERVICES, IT'S ALSO FOR OUR PARTNERS AND PEOPLE THAT MAY BE AFFECTED BY THE GAME. SAY, SAY A UH, ROWING CLUB OR A KAYAK, UH, CANOE RIGGER CLUB. SO WE'RE COMPILING ALL THAT DATA TO BUILD OUT A, A, A MATRIX THAT SHOWS WHAT THE COST OF OUR SERVICES ARE CURRENTLY AND WHAT THEY WILL BE DURING THE GAMES. THAT'S STILL AT A VERY PRELIMINARY, YOU KNOW, BUILD OUT STAGE THAT WE'RE WORKING WITH LA 28 WITH. BUT THOSE THINGS AS WE MOVE CLOSER, CLOSER TO THE GAMES WILL BECOME MORE IN THE PUBLIC OFFICE. HOW FAR ARE WE TWO YEARS BE? TWO YEARS NEXT YEAR? WELL, IT BE LONG SHORTER THAN THAT. UH, IF I'M RIGHT, UH, JOE, IT'S GOING TO REALLY START NEXT YEAR. 'CAUSE ALL THE TEAMS WILL BE IN HERE YEAR BEFORE WE HAVE, UH, YOU CAN'T ANSWER THIS QUESTION, MR. COOPER, UH, REGARDING TRACKING COSTS AND LOOKING AT THOSE SO WE CAN CAPTURE THEM IN THE FUTURE. AND FOR OLYMPIC ENOUGH TO OPEN SEPARATE LINE ITEMS THAT OUR STAFF CHARGED TO SO THAT WE COULD TRACK COSTS MORE ACCURATELY. AND I'M SURE YOU HAVE ANTICIPATED THAT AND OPEN UP ADDITIONAL THAT THEN LATER GO BACK AND SEE HOW THOSE AS A RESULT. THANK YOU. THANK YOU. UH, ARE THERE ANY ANNOUNCEMENTS ON THE PART OF OUR NO, MA'AM. AND THEN FOLLOWING THAT, I HAVE NO OTHER ADDITIONAL INFORMATION AND SO I'LL SUGGEST THAT THIS, UM, THE FINANCE COMMITTEE BE ADJOURNED AT 2:00 PM. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.