[♪ Wilson's Piano Sonata, Op. 42 by Vivaldi and havena, by Edvard Grieg ♪], ლახლრიღლ სანი სანინიზ ლოის ლანი სანინინ სადის სრის სირინის დგიფლი storage ვანინინის სანინივანის � ელიდი ცა მალუვა- სანიტვა ტვარ სს'.ხევის ტვეისგე სა ვანი სა სა მღე მღე მა ვანიშვრ საბი სირო მყა რა დ� ვრელი სანიშელანე სანიშვრ საბარ დშელი შელიმ სრელი რელუელს სირბო ვრელი სადანიშვრ სანი შელიყდებ რელძე მადრრონი სანირბოენიშვრ ყმა შვნარიჩვშგჩიტ მანიქთ რელივრ სადრნენნ სადრობი რელივრ მადროენ თელი მჩელილოერნ სღე ლელსდილსე რელენ რელსისი რელ� სადთრან რელენ რელან ხესესივრლერე თელივგღენ Ṫვდანელენ რელენ წნელელივრესიისისიიიო ოელელელემ���ꃙელანელე ხელელისისილელემელოელშინ County Council Committee of the whole FY 26 budget for April 29, 2025. And we'll go straight to our agenda and the first item on the agenda is the quarterly financial update. So Commissioner, Director. Good afternoon council members. Mr. Hensley's gonna be up here for a while so we figure we give a break for this one slide. All right so we're about nine month or nine months through our fiscal year 25 budget. You can see we talk a lot about how we don't have flat revenues and flat expenses every month. We try and budget how that's gonna flow throughout the year. So you can see as far as what we budgeted and what we what we looked at for revenues and expenses. The revenue line is the blue line. It's got hills and valleys to it and same with the expenses hills and valleys to it. Most months of the year we collect less money than we spend in that month. A few exceptions to that are property taxes. February just because there's a loan expenses and then we're coming up on the big one for us which is our net profits which we'll talk about and that's that spike in April. So just some highlights and overview of some things to consider as we look through the first nine months actual performance. Revenue collections are slightly exceeding budget through quarter three with a positive variance of 3%. We're going to talk about how April's our largest revenue collection month because of net profits and we'll see that in quarter four. The personnel budgets reflecting a variance of 3.5 percent or 8 million dollars and most of these funds are included in the pre-funding allocation reallocation for the mayor's proposed budget. And then the March reporting shows the transfers that were made during the October 24th fund balance conversation. These are the expenses and the transfers that are added to the budget but they're not new revenues. Those revenues are already in fund balance and so this allows us to be able to spend down some of the existing prior year fund balance for those projects and those transactions are valued at 20.2 million dollars. That's why we're running a one-year deficit because whenever we do those allocations in October we're spending down that fund balance and planning to spend more in the current year then then we are bringing in. So that's just a high-level overview and I'll jump right into the revenues. So with payroll withholding you can see we talk whenever we give these presentations about the quarterly nature of our of our payroll withholding. Typically the second month is the highest. You can see the blue lines what we budgeted. The gray line is the FY 24 actuals and the orange bar is the FY 25 actuals. In most months we've exceeded what we did in prior year and gotten pretty close or exceeded what we had budgeted. One that I want to draw attention to and I think we talked about it in a previous presentation was the spike that we saw in February was largely due to some delayed mail that we had coming out of the end of the calendar year. That is all in. That's all corrected. Now we're back on to a more normal reporting for our payroll withholdings returns coming in on a more normal basis relative to the prior year and what we expected and budgeted. With net profits this is this is really the big time for us and for our office. We are working through all of the mail that we've gotten. The big spike is really in April with tax day that we've seen. We did have a delay in getting the mail. We expected it to come a couple days after tax day but for whatever reason the post office didn't get the large portion of it to us until the Monday following and so that puts us a little bit behind. It might show whenever we get to the end of April that we haven't quite hit our budget but that could mean that we still have mail processing and whenever we give our next presentation we can make a comment about that depending on how we end up and how much we still have sitting in a in a safe room to process and put in the bank. So looking at our other revenue sources and and where they're performing to budget you can see insurance 5.4 percent still doing pretty well compared with what we budgeted. That's one of the ones that we're looking at to continue to keep growing. It's it's typically on any given year the amount of insurance people buys or the rates that they're charged that typically goes up and so that drives that increase and that's something we've seen just for the last few years. It doesn't it's not typically something that goes flat or goes down so this is a good rate of growth for us and something we're hoping to see continue through the next quarter and into the next fiscal year. Franchise fees is one I want to talk about. We we had that negative a negative variance for most of the fiscal year. We did identify some payments that had not been received and so we went and worked with the utility to get those and that's brought that to a positive variance now so we've got everything that's current and so now we're trending above budget. Hopefully with with the weather because that's largely dependent on how people use their utilities in the in the year hopefully we'll see that continue to to outperform budget. As far as some of our other categories services is one we usually talk about that shows negative budget and a lot of that has to do with a couple lines some of which we are by design and then some of which are things that are just happening throughout the year. Some of our detention center accounts are below budget that's just as a as a result of having fewer fewer people in the detention center that that provide those fees to us and then the excess fees and collections is as a result of some fewer payments coming in from some of our partners at the Sheriff's Office in the county clerk. Some high points to note under that line EMS fees continues to over perform what we budgeted that's largely due to the state program that we're participating in the ambulant provider assessment program and then golf course collections is one that's that's continued to over perform budget by about 9% so that's bringing some of that that negative variance up a little bit. On the whole the rest of those aren't very large dollar amounts even though they're large percentages and on the whole we're about 3% above budget or 10.7 million dollars ahead of where we planned on being at this time. Looking at the comparison for year over year one of the things we we've talked about is we do see a lower variance to budget this year compared with what we've seen in prior years we're budgeting more of the revenue we're expecting to receive and so you can see we've got some larger growth on the actual side but this just means that we're capturing it and we're able to allocate that this year for our current expenses. So payroll is performing about 5.5% above budget net profits as of right now we'll see where we end up in April it's about the same about 5.3% insurance like we talked about is performing very strong at 9.5% above budget and franchise fees is over performing by 5% so overall we're getting close to that 5% mark over what we collected in prior year and we've been able to forecast and use most of that money in the current year so that's we're getting getting a little bit better at forecasting that budget for for the current fiscal year even as those categories we do have a little bit of tightening in some of them so I'm happy to take any questions that council members have about the revenues otherwise I can turn it over to director Luker for the expenses council members you have any questions yes we do first we have councilmember Lynch director thank you so much for the presentation and my question is on the on this slide the cash flow variance revenue from current year to prior year what is the other financing sources line item so other financing sources that could be it's a few different things that are in that line it is leased asset proceeds is one of the items that's in there that is a lot higher this year year-over-year than it was in in FY 24 that also has a transfer from general service that's in there as well okay thank you thank you thank you council member next we have a council member Sabini thank you chair thank you for the presentation just quickly did for net profits yes did I think did Kentucky did we have a did we have a delay on paying doing our IRS filings even for a for a corporate entity if they're in a disaster area which I think we so the net profits follows the federal return and so if there is a delay or an extension at the federal level then that extends to the return locally as well because we can't process we can't process a net profit return without the federal and so we're really at the mercy of any extension that they grant so yes so I know we're into April and we're past April 15th do you do you feel okay or do you feel like there might be a delay for some returns I think there's based on some of the conversations that I've had I think there were two schools of thought it's either let's go ahead and get it done because we're ready and we're ready to have it complete or we owe money and we have extra times we're gonna take it I think we still have a lot of mail to process and so I don't know I think based on what we've seen so far I don't know if the impact would be something that we would notice based on what's outstanding knowing that there's you know seven tubs of mail and I don't know how many dollars are in those tubs got it thank you I appreciate it that's all chair Thank You councilmember next we have a councilmember Baxter Thank You chair and Thank You director can you remind me what goes into the fines and forfeitures line yes fines and forfeitures it has just a fines and forfeitures account so that could be lots of different things as a result of work across various divisions and it also has specifically ABC fines what can you say ABC fines alcohol beverage control funds that's a that's a smaller amount say I like to see everybody in compliance that's and then my other question is about investment income on the other slide oh dump that one is that just what is the difference there that we're seeing so I think the main thing to keep in mind is investment income is largely driven by the amount of interest that we collect on our investments we have what are typically very safe secure investments treasuries certificates of deposit and money markets and the Fed did decrease rates by a percentage point over the last over 2024 and so as those interest rates go down we'll collect less than interest over the course of the year okay thank you appreciate it Thank You chair Thank You councilmember next we have a councilmember Ellinger Thank You chair I just want to councilmember Savigny said about it with it being extended to November I think it was if you don't pay or if you don't file now do you still and you do oh don't you have to pay interest in on what you didn't so you might not pay now but you will have to pay more later since we can't assess since we can't receive and process the net the net profit return without the federal return if someone chooses to take advantage of the extension we don't assess interest until the extended date only because it's not something we can reasonably expect them to do if their federal returns not done so if they were if they won't have any interest if they pay in November then is what you're saying okay just want to clarify that thank you Thank You councilmember and Wes I don't see anybody else signed up for questions so all right turn it over to director Luecker right to the Luecker welcome good afternoon so as you saw we have various charts this month since it's a quarterly report this one shows our personnel actuals to our personnel budget and you can see FY 24 is the gray bar FY 25 is the orange bar and then the blue line across there is the FY 25 budget so you can see with personnel we're trending higher each month with the exception of a couple of months and that's due to the three payrolls falling in different months this fiscal year than last fiscal year last fiscal year we had three payrolls in September and in March and this fiscal year we had three payrolls in August in January so that's the only that's where we see a shift in month over month you can see we've been right at budget all year long and we're just now starting to see a couple of months where we are seeing some savings and you'll see that in a couple of slides here's the same chart for operating you'll see with the exception of just a couple of months we're spending more than we did last year we've hit exceeded our budget for two months this fiscal year in our operating but most every month we have been under budget for for our operating so in looking at the personnel we are 3.5 percent variance to our budget this is only up 0.8 percent from the prior month so last month our variance was 2.7 so our variance went slightly up we're at 8.2 million dollars there and as Wes mentioned earlier a lot of the personnel variance is being tagged for part of the pre fund is that's part of the mayor's proposed budget so we'll take that savings and use that to pre fund items for FY 26 we're seeing the savings in our personnel in some full time salary accounts in our overtime accounts and in some of our payout accounts with our operating variance there you see it's 22.1 that one I was more interested to find out that it only went up 0.3 percent from the prior month so we didn't have a lot of growth in that operating variance from February through to March there that one is all over the place we have savings and professional services across multiple divisions multiple professional services accounts we've also got it in our operating accounts our operating supplies accounts equipment accounts repairs and maintenance and that includes vehicle repairs and maintenance we've got it in software accounts cloud accounts so it's really spread out across government through various accounts in various divisions and some of that will also be part of the pre fund we're looking at that as well and then you'll see our insurance it's right there at budget it's 0.3 percent within and then debt service we know that will be expended as we go throughout the fiscal year we've sold our bonds for FY 25 we've got those payments to be made and so that variance will go away as well as our partner agencies we have commitments we have agreements with our partner agencies we have the library in there which were state statute requires us to pay them so we'll see that dissipate as well so the capital this is a flip-flop from the prior month the prior month we were spending less than budget and this month we are spending over budget for our monthly spread on the capital so people are getting to work on their projects and spending there so that's a good thing so overall with our operating you'll see we're 25 million dollars positive when I remind you in the mayor's proposed budget there's an 18.3 million dollar pre fund so we are utilizing savings to pre fund those items for FY 26 budget and if we looked compared to prior year you'll see we're spending more than we did in our categories with the exception of the insurance and capital there was more capital in FY 24 budget than there was in FY 25 budget so that's why that one's lower and then insurance that one kind of ebbs and flows given what we have available from year to year there so the other big thing to note on here is the transfers you'll see FY 25 FY 24 transfers was a much larger amount we had 59.7 versus the 27.1 and FY 25 that's due to larger transfers as part of the FY 23 fund balance that took place in FY 24 so that was moved over to the capital fund so that that's why you have such a large difference there and it does stand out on the paper so I did want to note that but overall we're doing well we're spending more than we did prior year just not not spending to budget quite yet so with that I'll take questions before I turn it over to Commissioner Hensley thank you director councilmember are there any questions first we have councilmember Savigny thank you chair thank you very much for the presentation so what I'm seeing just kind of tell me if I'm wrong here I'm seeing about a 37 million dollar variance right the 22 to 59 that was the current variances of the end of March so I will and and my guess is there's some timing issues in there and I know there's some things that you'll end up closing out and then could I just then ask and and maybe this we we can ask in the and when we get to the budget piece of this like is there a typical at this point are you guys forecasting that out and you have a comfort feeling for what you're pre funding and you generally have like I don't know what your degree of your factor of error is that you're trying to use when you're doing that projection out for pre funding like are you trying to pre fund 50% of it you know what are you trying to do we went to pre fund a comfortable amount but we don't want to set up a pre fund where we don't have enough funds to close out the books at the end of the year we are currently working right now we have a lot of budget amendments that are coming through getting projects cleaned up getting things cleaned up this is running over this is running under and working through all of that so there's a lot of moving pieces right now as we only have four meetings left to get budget amendments processed because they have to have a reading and single you know a single reading per meeting so we're working with a lot of people to get things cleaned up and make sure everything is covered before the end of the fiscal year so you're going to be seeing some budget amendments coming through within next week in the following three three weeks or so to clean up some of that and get us in line thank you that's all I have sir thank you councilmember any anybody else have any questions I'm not seeing any thank you thank you director so now we get the Commissioner to go through the other funds so we started on the adventure of looking at some of our other dedicated funds last month and we are continuing with those same other funds this month to kind of get back into seeing those two months in a row just so we can get familiar with those again so just as a reminder when we look at the general fund budget we're looking at about five hundred million dollars of our overall budget when we look at the ones that we're looking at today in addition to that they'll represent about seven hundred million dollars of our overall budget of eight hundred and fifty million dollars so between the general fund and the ones we're going to look at today we're representing about 82% of all of the funds that we're responsible for the ones that we're looking at today are dedicated for specific purpose they have specific revenue with specific expenses as do a lot of the other funds that we talk about and they do operate somewhat differently than the general fund in that in that function and so they really have a lot more constraints on them than the general fund does and that's why we talk about them very differently than we do our general fund and they have a lot different decisions that need to be made so we're going to talk about first the urban services fund we left in the general description of that just for reference we probably will drop some of these slides as we go through as as the public becomes more familiar with them and we talk about them but also this is just a reminder that these are the three activities that are encompassed within the general service or the urban services fund excuse me refuse collection streetlights and street cleaning that is the 1115 fund it is complemented by the 1116 fund that is their kind of offsetting capital fund and they run in a beginning fund balance we talked about this last year in that fund of about 26 million dollars again with those three activities the fund itself is running very well year to date like the general fund we anticipate that certain things will happen again like the general fund certain things are happening that are different than what we expected their capital is delayed some of their operating is not running to budget and their payroll is running pretty close to where we expected so some things happen in common with the general fund and some things are different last month when we talked about this their revenue was lagging a little bit behind you can see that that has caught up significantly to where we expected it to be and so they're only there within about a million dollars of where we expected them to be at this point so that's great their expenses however have grown a little bit they're actually a little bit more savings than we thought they would have at this point within this fund and so just like we talk about in the general fund we look at these different categories of how they're operating and if you look at this is a one-year snapshot of their change in fund balance and this one we would break down further into their activities on an annual basis they're actually doing better than we expected them to to the tune of about eleven million dollars again we would have to break that down by their activities but they're they're doing better at this point in the year than we expected them to by about 11 million dollars now that being said we have some headwinds with this particular fund we know that we're getting ready to enter into a phase where we have renegotiated the contract with our waste services provider this fund and the others that we're going to discuss today are very capital heavy so they have very expensive equipment and it's very costly when we do repairs at the MRF and we have big expenditures if we have to replace a pad for example the training pad or the driving pads those are very costly things so when we do have to outlay capital it is very expensive so you want to make sure that you have the resources there to do those things so again this this urban services fund primarily has its revenue derived in the months of November November and December we have recognized most of the revenue that this budget will receive it will continue to go through the remainder of the year on that revenue it's doing very well it has some budget savings as far as its operating dollars and its capital is lagging a little bit but it's doing very well for the year the next fund we're going to talk about is the sanitary sewer fund just a couple of notes about how it operates it used to operate in conjunction with a trust fund a construction fund and the operating fund that trust has now been rolled into the construction fund that's a change in accounting principle just so you all know the budget has not changed and so you will see reflected in here there's an other financing source that's causing a huge variance 12.7 million and a big transfer line item that's the 14.9 million dollars that are showing large variances there that's that change in accounting principle with the with the trust fund that is no longer that we're going to need to do the budget adjustment for and we won't budget for it all it's not reflected in next year's budget but again overall this fund is doing very well it's running to budget but it runs complementary with a construction fund this is a very capital-heavy operation this sanitary sewer and the water quality funds as a whole are for the maintenance operation and continued functioning of those systems the funds are the revenues are derived for those operations and the expenses are restricted for those operations so all of the revenue in and expenses out are for the maintenance and operation of those funds so the the cash in and cash out flow back and forth between the operating and the construction funds so any surplus funds that are generated at the end of the year in an operating fund either for sanitary sewer or water quality gets kicked over to the capital fund at the end of the year for those long-term and large expenditures and vice versa if there's additional funds needed for operating they go back and forth just kind of balancing each other so you can say see for the end of the year or for the sorry end of the quarter there it looks like their revenue is running a little bit behind the the major driver that is contributing to that is that other financing source that is not a not an actual concern but their expenses are are also doing better than expected their transfers is also creating some noise in there but overall the fund is doing well for the third quarter and similarly water quality fund operates somewhat similarly much smaller obviously same idea though the water quality funds bringing in more revenue than anticipated to tune about two million dollars it also operates with that capital fund that we were discussing and they're also doing well to budget as far as personnel they're almost right on and they're operating is running under budget of what we expected to the tune of about 1.4 million dollars so they're doing well as far as their current year change in fund balance as well I know that was a lot so do we have any questions commissioner that was a lot council members do you have any questions commissioner you know you've said a lot of things about the the urban services fund and in some of the new costs that we're gonna have to occur are you going to talk a little bit about that when you go through the proposed budget and how you might how the administration has made adjustments to address some of the challenges that we know that are coming I can talk about it then or I can talk about it now actually I probably will go ahead and just talk about it now if you don't mind I think urban services is one that we've been watching for some time with it having those three activities the folks that have been here will recall and the folks that haven't may have actually known about it because they got a second bill perhaps we fixed the streetlight component of it last year or the year before I can't recall but with the three different activities we actually run a somewhat of a financial statement on those three different activities we bill each activity separately and each activity needs to be able to pay for itself both its revenue it need its revenue needs to be able to cover its expense and for the last several years the general fund has been supplementing the revenue for the streetlight activity the the cost of the utilities had increased so much that the revenue being generated was not covering the cost of the cost it wasn't covering and so the recommendation was made and the council made the vote to change the rates for streetlights and so it went to a vote and we had to increase the rates and so a second bill was sent to those members of the those members that were receiving streetlights and so when we take a look at some of these activities and they no longer are meeting the need they're no longer funding themselves and they're they've gotten out of whack we really have to figure out how we're going to address that and so we look at the revenue for these activities every year in our ad valorem conversation that happens in August we do an analysis where we look at how much our digest has gone up as far as our property taxes what the revenue is going to look like how are all of our rates are going to adjust accordingly and figure out what what it needs to be to be able to make to make the revenue and and what our costs are going to be and then the mayor will make a recommendation and council will make a resulting determination of what they think needs to happen with the changes that we've had to make with the contract negotiation that we've had to have in waste services we've had to make some different decisions over the last several years we've had an incredible contract that we have known is coming up for rebid this year and what we've been able to do over the last several years is make a significant investment in our fleet out at waste services we've been able to put several million dollars into replacing our heavy fleet out there as well as do some significant improvements at the MRF and really some needed improvements so we've been very capital heavy the last several years this year with knowing that that rate increases coming with the rebate of the contract this year's budget we have proposed pulling back some of those capital investments until we really see how everything shakes out with the new contract where our revenue is we we are in the budget not proposing a rate increase over the 4% at the moment when we get to August we will have to go through all of our calculations and we'll see where we are but in the budget we're not proposing any increase and I'm not going to make any recommendations for the mayor we'll have to go through the process when we when we get all of the all of the rate or all of the digest from the PVA at the time that that happens so we'll go through our normal process but she is she was not wanting to get out ahead of our normal schedule and so we are not we did not jump ahead of that in this budget but we did want to be conservative as far as our investments in capital in this year's budget and so having had those many years of investment we felt comfortable only putting in three and a half million dollars into the capital out at waste this year and so we did make some different decisions as far as what we invested in the budget this year noting that that is something that is going to change and is coming okay yeah I just know that's been talked about quite a bit and I just think it's important that council members know that you you all took that in consideration when building the proposed budget we have councilmember Savigny thank you and thank you so much Aaron for doing this and I know it's I really do appreciate it I just want to tell you once again it's really nice to get this at least in a quarterly basis so I just have a few questions on the urban services fund quarter three so it's a little misleading but I think we've received most of the so the revenue to you basically budget basically seasonally so you're expecting all the revenue at this point so that revenue numbers it's gonna maybe fluctuate it might be a little bit but there's like there'll be some investment income and there'll be some other things but the expense number we've basically that that's actually the budget number is supposed to be for three yeah three-quarters of the year right okay so even though it it looks like according to the budget we budgeted kind of a surplus when you look at this okay technically since we don't see the next three months we actually did budget a negative five million or so close to four million something like that right we we haven't quite hit our budget the last couple of years yeah 23 and 24 in 23 we budgeted to dip into our fund balance 7.3 million dollars we actually only needed 700,000 yeah so we missed that one a little bit and 24 we expected to use 5.1 million dollars and we ended up to the good 1.3 million so we've missed a little bit the last couple of years when we talked about presenting these on a quarterly basis one of the struggles that we had is that we don't actually budget for it the same way that we do the general fund and now that we know that we're presenting it this way we can do it a little bit differently and so the presentation of how we do this was a bit of a struggle and so I think we can learn from that and and get to a better how does this work better but yeah that that it works well for the revenue and less well for the expense yeah like you might want to do a column or something that says like today or you're today and then like it to go so that we see that the expense number is going to keep going but the revenue numbers we were trying to keep the format similar I get it I get it but I think it's very good but I mean it and it's good to know because I was expecting that we actually did overspend in those other years but the fact that we didn't is super super helpful and supportive to know going into this budget cycle yes I I had similar concerns and when I looked back the last couple of years and yeah that's great we missed that that did not make me sad I want to ask you a question generally about so we've been generally paying for capital like when we need refuse trucks we're buying we're buying refuse trucks and we're paying for them with capital out of this fund okay because because the funds are available there's cash in that correct right if we were to go to a method at some point where we bonded for let's say we bond for a million dollar truck would the million dollars show up under the bond and then the and then the payment stream would show up in the budget here under the urban services fund is that kind of how it would work and we did used to do that at some point in the past we did used to actually bond the capital in the other funds when they did not have the cash to be able to fund the capital investments okay and so that is a venue that is available should that become wanted or necessary thank you thank you and then my next question is on the sanitary sewer operating fund and if you look at the the services revenue there so it that services revenue is probably directly tied to the the dollar value of the water bill I would think that's the that's the number because it's our sanitary it's when I get my sanitary sewer bill I think it's I think it's tied to my water bill and the volume is that correct or the amount of it so and the water company had a rate increase do we do we think about that when we are doing our budget or I'm just curious just so that I know it in my head when we're going into this link and if you don't know what it's okay you can get back to me yeah let me get back to you on that and I used to go it used to be with it used to go with the water bill but I don't know yeah so so we have separate sanitary sewer rates which are based on water usage but not necessarily tied to the rate that the water company charges okay thank you super helpful all right that's all I have chair thank you so much Thank You councilmember and thank you Commissioner I don't see any other questions for this portion I know it's been a daunting task to try to get this information to us in a way that's digestible but I think we're off to a good start that's all right we will we will keep working on it if there's any recommendations if there's things that don't make sense or we're trying to keep the format as similar and familiar as possible but they're not exactly the same and so you know if there's things that make more sense than others we are happy to make adjustments so please we're happy for feedback all right Thank You Commissioner so going back to our agenda that information that's in your packet the ARPA financial update information is in there for information only the next item on our agenda is the FY 2026 mayor's proposed budget overview I see the mayor is here with us Mary do you want to share any anything and let them do it all okay all right so Commissioner and I'll turn it back over to you to go through the mayor's proposed budget overview thank oh sorry councilmember Ellinger you got a question sorry about that go ahead Commissioner so before we get started today I would like to thank the mayor for her direction during this process the CAO and her team and all the divisions and folks that helped us put this together as well as my team who worked a tremendous amount of hours and weekends and nights and time and brainpower and lots of chocolate and it this was not an easy budget to put together it is very specifically put together to maximize the resources that we had on hand we know that we could be facing some headwinds we tried to take that into account and I think this budget you know gives us the things that we need and some of the things that we want and so keeping in mind that we could have some uncertainty ahead of us we tried to keep keep at the forefront of our minds the mayor's priority on serving our residents keeping our cost of living low investing in the quality of life and responsibly managing our fiscal resources so as far as putting our budget together when we took a look at what we had to work with this year one of the things that we really did was go back through all of our resources and we do this every year but when we talk about the couch cushions we really went through the couch cushions this year and so part of that was going through all of our bonds all of our capital and looking at everything that was unspent or really not utilized maybe to the best extent possible and seeing if there was a better or higher use for those dollars and some of those were really hard decisions and so as you look through the big book or the electronic version or these slides that we're presenting you will see the pre fund you will see the capital reallocation dollars you will see a variety of methods that are used to really put this thing together we know that we have 5.6 percent adopted revenue growth that's good I mean that's that's a good revenue growth but we're coming off of 11 12 13 percent that makes this feel a little tight and so that's a little bit harder to kind of fit all of our wants into and so really trying to maximize what we've got was important this year we used a variety of strategies to get here our budget office started in November with all of our divisions going line by line by line with every single dollar that we spend and trying to figure out where we've left money on the table every year and see if it is this the most important and best use of those dollars and some of it got reprioritized within the division and they said no we don't really need it here we need it there we looked at staff vacancies and seeing if we could use that in a different position you guys saw some of those come through during course of the year when we said abolish and create, and so we really looked at reprioritizing what we had. We limited our new bonding to hold on those recurring debt service payments. That was really important, and reprioritizing some of the bonded dollars that we already had out there was really, really vital to keeping our bonding dollars low, but still being able to get the capital that we needed to proceed with this year for things like our paving and our investments in our fleet. That was really important. We utilized our cash resources for those items that have the long lead times. We've talked to you all the last couple of years about the fire vehicles and how they take three and four years to get here, and us paying debt service on those and having to pay interest for three or four years when we're not receiving them in is just costing us some money, and so trying to prioritize using cash for those kind of purchases instead of bonding them, that was really important. We talked about recognizing some efficiencies from changes in philosophy. Some of our divisions really would like to outsource some of their positions because they're struggling to find people to fill them. They just can't find folks for, say, example, IT. They can't find people to fill those positions, and they find they do better getting contract dollars or certain engineering positions or certain, I don't know, other divisions. Other departments do better hiring folks instead of getting contractors. They do better if folks are on staff. So really taking a look at the division, seeing what they need, and trying to adjust for that within the division. And then last but not least, prioritizing our existing personnel needs over granting new personnel requests. That was a real priority for the mayor. We had a lot of personnel requests, and we have over the last couple of years. We're going to have a slide here in a few minutes about our personnel, and you'll see how much we've grown over the last couple of years. It was a real priority for the mayor to take care of the staff that we have before adding on additional staff. We know that retention is vitally important, and keeping the expertise that we have here is really important as well. So really keeping in mind that the benefits and the prioritization of the staff that exist is a key factor into keeping the services to our residents top-notch was a priority for this budget. So as far as the big picture goes, we are projecting an annual revenue, a recurring revenue of $520.8 million and a pre-fund of $18 million for a total budget package of $539 million. In that $520.9 recurring, payroll withholding makes up the largest portion, followed by the net profits that Wes just talked about that typically comes in in April, and then insurance, premium tax, franchise fees, property tax, services, and then everything else makes up that tiny little sliver at the end. I wanted to just give you all a picture of where we've been historically versus where we've been the last couple of years. Because as you can see, the last few years are not typical to our history as a government. So where we are going is actually not really typical to where we've been. And I think that's important because what we've talked about over the last couple of years is we're re-normalizing. Revenue growth for LFUCG is typically 3-4%, and that's considered pretty good. So 5.6 is a really good year, actually. And so the last several years, I think, have created some significant momentum in both our expectations and our desires that I don't know that are sustainable for the long course of time. So I think that we are, again, re-normalizing where we are going as far as our revenue growth. And I just wanted to give a picture of what that looked like over the course of time for us. By category, our budget is 65% personnel. Now that's not just our salaries. That includes our health insurance, which has gone up year over year. That includes our pension costs, which are not insignificant, as well as our other benefits for our employees. Our partner agencies are 5%. The vast majority of that is the library, as Director Luker mentioned. Our debt service is still hovering around 10% with our increased revenue. Insurance is 3%. Operating is 16%. Transfers at 1%. And capital is just a little less than 1% this year. That has been significant in the last prior year's budget. We've been able to make some significant investments in capitals over the last several years. So that's been really helpful. But we just didn't have as much cash to be able to contribute to that this year. And that's okay. Our biggest investment, as we mentioned, is our people. So this kind of shows you where we were in 2020, 2021. The numbers in the white are the positions that have been added. And in this budget, we're headed towards almost $337 million. This budget proposes adding 16 positions, seven of which are at the Senior and Therapeutic Center that won't come online until the very end of this budget. So it is very, again, to that last point about the mayor really wanting to prioritize the positions that are here. It is very low in new positions. In the 2025 budget in this year, the vast majority of those positions were bringing online during the course of the year when we were able to bring on EC13. And some of those things we were able to do during the course of the year. So those weren't all added at the beginning of the year, but that was a significant improvement that we were able to do during the year. As far as our debt service goes, we were just talking about that. This year we're proposing about an $18 million new bond package. You can see our debt service has kind of fluctuated a little bit over the last couple of years. It does lag a little bit based on the budget because of when we actually go out for our bond. We've been pushing our bonds out a little bit because the items that we're purchasing, we haven't needed the cash right away. We've been able to cash flow that. We've been able to sit on some of that ARPA money, and that's been able to help us cash flow some of those investments. As some of those cash resources go away, not this year, we'll probably be able to push that out a little bit this year. But next year, we'll probably look to be able to bond that a little bit sooner, especially if we're doing things that go out the door a little bit quicker. We'll be looking at a 10-year bond this year because it's primarily police vehicles that we'll be able to obtain more quickly and paving. So the things that turn around pretty quickly, we'll need to use that cash a little bit faster. We also provided a look back over the last several years of how we've invested our capital dollars. So if you look at the capital investment slide on the right side, you can see how we've used budgeted capital versus pre-fund bonding and then the capital reallocation dollars. So it kind of gives you a good idea of the balance between bonded dollars and cash and how we've been able to utilize our resources over the last few years. As far as our operating budgets, you can see again those last few years we've had 17, 11, 7% growth. This year we really held those operating budgets. Again, that is a function of reprioritizing the dollars within individual budgets and putting them to their highest and best use and really holding those increases in operating budgets down to exactly what we need. We really looked at our contracts, how much are our contracts going up with our vendors and trying to limit what we're going to increase our operating budgets to really just what we need. Noting that we have a lot of needs and a lot of wants, but really just trying to be judicious with what we can afford. All of that against a backdrop of what you all asked for. So I am really proud of the fact that we were able to get a lot of those things in. All of these things were things that the mayor was very proud of and I think were excellent suggestions and recommendations that we were able to include and are represented throughout the budget. If you guys have questions about where they are represented in the budget, please let us know. One of the questions that we get a lot and I'm sure that you all get a lot is how much money goes back out into the community. And a lot of people really will look directly to our ESR program and that's the extent of the knowledge that they have as to where our money goes directly back out. This is actually three slides because that's as condensed as we could get it. But I wanted to provide all of the different areas both in program and in division and in dollars of where our money goes either back out to an individual or to a non-profit partner or to just really a direct recipient of where our money is going. And so we have three different slides for you, either in operating dollars, our partner agencies, our pre-funded transfers and programs because again it's scattered all throughout the budget. We have almost $20 million that's going out. And so just to provide a resource for you all of where all of that is scattered again because it's really hard to put all in one place. These are different resources that are out there. I know that there are a lot of questions going around, there's a lot of concern that is out there, particularly for our non-profit partners and there's again some headwinds that are out there. But just as much as we've been able to kind of condense this and this is by no means exhaustive, this is just what we were able to pull together. Trying to kind of answer some questions for you all that you might get for where things are in the budget and how we were able to fund some of the things that we know our community is asking about at this time. And then another question that we get a lot about how we fund our budget. Our public safety, and this is all of public safety, this is not just our sworn members, so this includes E911, our public safety administrator and security, our ABC administrator. They represent the vast, not the vast majority, over half of our staffing. They also represent a good portion of our budget. Our debt service represents 10% of our budget. Our general services, our partner agencies, we talked about this as well. But this is by department, all of our general services represents 9% of our budget as well. It's a slide that people tend to enjoy as well. That is all the remarks I have prepared for our general fund portion of the budget. You will see this presentation is very much longer than this. I've also prepared slides on some of the other funds. They are much higher level than the ones that you have just seen. We are providing an estimated fund balance, a revenue, an operating capital for the different funds, and then highlighted just a general note for some of those things just to give a broad based overview. They are in much more detail in the budget book if we would like to discuss any of those in detail. And then also at the back of this slide deck, there are specific lists that you will also find in the budget book and in the summary detail that are provided for easier reference. Sometimes it's easier to find this presentation than it is to look through the giant budget book or the summary book if you're looking for pre-funded items or if you're looking for capital reallocation. We have also provided those lists in the back here for you in case that's easier referencing as well as the new positions that have been funded, the debt service and the new bond package, and then the capital reallocation. So at this point, I'm happy to take any questions you might have. Thank you, Commissioner, for the presentation and for your work on this budget. And I'll also compliment the Mayor and the CAO and the whole team for all your work on putting this budget together. I think the inclusion of Councilmembers' budget priorities in this budget has really, I think, put us in a good place to get started with having the conversation going forward. And I'm going to open it up. We've got Councilmembers that have questions. But I will preface it with, you know, this is an opportunity to ask questions and get clarity on the Mayor's rationale and her team on why they built the budget and not an opportunity to advocate for other things that folks wanted in the budget. So with that, I'll start with Councilmember Baxter. Thank you, Chair. Thank you, Commissioner, for you and all your team's hard work. I know it's been a lot, and I feel like everybody just needs to take a deep breath as we dig in. So, Mayor, thank you as well, or as Councilmember James Brown said, just including all of our thoughts and concerns in your budget. It's really appreciated. Commissioner, I have a question. I'm looking at the operating budget slide, and I really appreciate the fact that we've tried to kind of maintain. My question is, when you were approaching each department in preparation for the budget, what task did you give them as far as looking at their operating budget? Were you asking them to, because I know we made some significant, I don't want to say cuts, but we did a lot of trimming last year, but were you encouraging them to look even further than we did last year as far as right-sizing their operating budgets? So we've done a couple of things. Again, we started in November. Each division was assigned a budget partner within our budget team, and so the budget partner became their go-to person that really was assigned to learn their operations and become their day-to-day point of contact, because we can know the numbers, but without understanding why they need what they need or why, you know, the seasonality of their expenditures. If you look at what they're budgeted and they haven't spent it all year, but their expense doesn't happen until May, you might not make a good decision if we were making those decisions. So those really aren't decisions that we should be making. It needs to be a conversation, a partnership. And so what we were providing was a data set that says, historically, this category, this line, is underspent by X dollars. Can you tell us what's in that line? Can you go through and tell us what you typically use it on, what you've increased it by, what are the contracts that are in here, what are your expectations, what would you like to grow that by? And some of the things are explainable, totally makes sense, let's leave that alone. Some of the things we come back and say, oh, we don't think that's enough, based on what you're saying. Believe it or not, that happens. And some of the things we say, OK, that maybe should be a new and expanded. Some of the things we say, maybe we need to have a conversation about that. And then we bring it to the budget team as a whole, a.k.a. Sally's team. But I do think that this year there was a lot more conversation and really knowledge about what was in those line items. I really think as the divisions went through it and dove down into what had kind of gotten into some of those lines, we really didn't have to do as much requesting. They kind of did it themselves. They really came back to us and would say, we really need it to be here instead of there, or this is fine, this is where it needs to be, or that kind of thing. I really appreciate that, because I think over the past few years that's something that I personally have just been paying attention to. And I think knowing what goes into each of those individual line items is important. And I'm thankful that you guys have done that review of those items as well. Moving forward to the pre-funding page for community investment. Can you just give some rationale on why those items were pre-funded as opposed to just funded in the general fund? I didn't know if it was timing of the awards or a little bit of both, or just for clarification for everybody. So for a pre-fund, that means that an expense needs to occur or the funding needs to be able to be transferred off of the general fund in current year. So that means the expense needs to happen in this year, so 25. So those items were selected because their expenditure is either able to be in another fund, meaning we can transfer to affordable housing or transfer to workforce, or we can go ahead and execute those contracts and have that expenditure occur, that commitment occur. And so when we look at what is in pre-fund, we are very intentional about the items that will move off the general fund, can move to a different fund, or can be incurred and expended by the end of the fiscal year. Those are the only things that can happen in a pre-fund item. So you have to be careful. I appreciate that. Thank you. Thank you, Chair. Thank you, Councilmember. Next is Vice Mayor Wu. Thank you, Chair. Thank you, Commissioner, for you and your team and all the work you all have done, not only putting this together, but also explaining it to us in a really good way. And I would encourage my newer colleagues to reach out to you and your team if they need a deeper dive into any of this stuff, because it is a lot to take in, especially just a few months after you all have gotten here. I have a couple of questions. The first one is, it's more kind of our budgeting process question. As we're going into links, going into this year, it's a lot leaner of a year than we've experienced recently. And we're, I think, going to work a little harder on trying to find funds. If we're trying to add, we have to try to subtract. I wanted to make sure to kind of get with you and help us think about how that will work, because I don't think it's as simple as, I want to add X amount of dollars to this, so I'm going to subtract X amount of dollars from something else in my link. Can you help think us through that, and also what your role may be in kind of guiding that? Sure. Yeah. When I say that the budget is crafted very intentionally, it is a giant puzzle. And to Councilmember Baxter's point, there are only certain items that can be pre-funded. They are things that have to be done by this year. There are only certain items that can be bonded. If it's going to be bonded, that means you have to have a recurring revenue to support that. And we are at the top end of our revenue estimation. So that means something that is recurring would have to come out. And so there are constraints around adjustments that would need to be made. And so we would be absolutely thrilled and happy to work with you all on your recommendations and your changes, noting that there are parameters around how we need this to work in order to maintain the balance that we have to have by law. And I appreciate that very much. And then my last question is regarding federal funding. Obviously there's still tons of uncertainty. We don't know what's going to remain, what's going to get cut. We're starting to get a little bit of an idea of what areas they're going after. So I wanted to kind of touch on how we're thinking about Plan Bs as things may potentially get cut. And then how should we as Council think about that? Because we're still operating on an assumption that all the funding that we've gotten in the past we will still get because we don't have any other information than that. As things are morphing and changing in the middle of us trying to create this budget, what's a good way for us to think about that? And what kind of contingencies or Plan Bs are we putting in place? I kind of think of it, and I'll just give you my personal opinion. I kind of think of it in terms of triage. To me, I think that we will need some time to figure out, not we, you all will need some time to figure out what programs you will want to retain and what programs we will not be able to continue to support. And in that time, we will need to maintain the staffing that is here to be able to do that. What will have to happen in order for that to occur is we will need to have dollars to be able to maintain that staffing. We have several grants that we are still working on several years back. So our staff are charging to old grants. There is a scenario where what we don't get is new grants. So in that scenario, we still have the grant funding that they're charging to. And we don't have a scenario where we're having to find new dollars. That's a good case scenario. There's a scenario where not only do we not get new grants, but we also get our old grants pulled. Then we need to have dollars where we are continuing the staffing. If that happens in October or November, then we've had a couple of months to have some personnel savings. If that happens in July, we have a different scenario. So I think being able to budget for all of that, and to your all's question, why didn't we put this in the budget, I think there are so many scenarios that being able to pick one and put a pin in it is a little bit presumptive. But I think probably what we would need to do is make sure that we are nimble and flexible enough that we are able to come back to you with requests for budget amendments from personnel savings, from fund balance, from whatever opportunities we have when some of those might fall to bring you some solutions that we have worked out. And we have some other things that may happen depending on when some of these scenarios could come to fruition that we would explore. But it will just depend on what happens when. Thank you for that. My time is up, but I'll sign back in to follow up. Thank you, Chair. Thank you, Vice Mayor. Next, we have Council Member Savigny. Thank you, Chair. Thank you, Commissioner Hensley. I've got just a few questions for you. You did a great job. Again, thanks again. And it's really nice to be confident in the things that you say, and it helps the security on this side feeling like, hey, we've got this under control. So I've got a few questions for you, just in case other things didn't get under control. And you kind of answered Vice Mayor Wu's question, and mine is similar. While we can't plan on a recession, I don't think you're planning on a recession in this budget. Have you thought about the levers? Normally, you would go into a year like this and you would say, what are the levers? And if this scenario happens, we'll probably pull this lever and that lever. And I just want to know that you've thought at least about that. I don't need to know the answers. I just kind of want to know if you've thought about it. We have. Okay. All right. We'll be fine, right? Yes, we will. Thank you. That's all I need to know. Second question, on vehicles, because we've had every year it's kind of fun because we have a million vehicles asked for. And it's always a joy. Do we ever, how do you treat, do we ever do manufacturer financing? Because when I was in the IT business, we did a lot of financing, a lot of 0% interest. How do you manage a manufacturer? Because a manufacturer is going to do something to incent us to do something with that manufacturer. So if we were going to buy the quad cab truck from Ford and Ford had a good financing offering, do we ever do that? And is that considered in our bonding bond? Is it considered like part of the bond or is it considered just an operating cost? We have not done that. We actually looked at that the last time last year when you brought this up as far as the fire trucks. Okay. And it was the first time to my knowledge, and maybe they've looked at it before. But we got a better discount by committing, if I'm not mistaken, by committing the dollars up front than we did to do their financing offer. And so we paid a deposit and ended up financing it ourselves because we did cash. But that was the first time that we had looked at it. And so I'm happy to explore it on the other side with Wanda to see if there's a deal. But we did look at it with fire trucks. I'm mostly talking about the things that are not custom done. They're just the run of the mill things. And we tend to either say we have to have the capital budget to just pay for it. We never really look at the other option of a financed option. Yeah. I definitely can touch base with you on that because that's not something I'm familiar with. Okay. Yeah. Let's talk about that because I think it'll come up in the next 24 hours. Okay. And then the urban services fund, is that fund balance estimate right? It is. Okay. Yeah. Okay. It doesn't look like what it should be, but okay. Number four, my question was the bond percentage. I think you had it in that supporting slide. I think we're meeting the goal of that resolution this year. Is that correct? I think we're at 10.4. We didn't quite click over to push over to 11, but I think we're just right at 10%. And that's counting. I mean, I'm talking about this coming year. You're projected for the timing. Right. We're projecting. Okay. That's all I have. Thank you, Chair. Thank you again. Thank you, Council Member. Next, we have Council Member Lynch. Thank you, Chair. Thank you, Commissioner, for your presentation. I have a couple of questions. My first being about the municipal aid program. I know I've had recent conversations with some folks in the administration about this fund. So, can you just tell me more about this fund and then the projects that are listed there? Yes. So, a vast majority. The MAP program this year actually has a more significant contribution to paving than we have in prior years because they have actually grown a little bit of a fund balance over the last couple of years. So, we were able to do a larger investment this year than we have in the past and will again for paving. And so, that's good that we were able to do that. But it typically is utilized for some match on a number of projects that have grant funding. So, they're longer range projects. They take a long time to get through. And so, you'll see that a lot of those are in engineering or in traffic and they're rolled from year to year in that they just take a long time to complete. And so, the list of projects that is in the MAP fund and is retained and rolled from year to year is quite significant. But they typically are matched dollars for larger contributions elsewhere. I guess, what is the funding source? The gas tax? Yeah. Melissa, it's going to help me out. So, this comes from the state and it's a share of the state gasoline tax. And so, we get a portion of that and we can only use it on certain roads. So, this can only be used on roads. I can't think of the correct term, but it can't be used out in the county. It can't be used. It has to be used on more of the urban surface area roads as opposed to the county roads. Okay. That helps. Thank you. And then, my last question is regarding the FY 2026 general fund personnel slide. And you've listed the 16 and a half new and expanded positions just for clarity because I have an idea. But just for clarity, which ones are new and which ones are expanded on that list? And it's a few slides towards the end. Oh, the new and expanded is the category that the request is. They're new positions. I have an idea which ones are new. I guess I'm more curious about which ones are the expanded. Is that expanded mean also new or does expanded mean this position has been, there's been an increase in pay and job duties and things like that? The category is new and expanded. And so, they're all new, but they're just entered into the category new and expanded. Okay. So, they're all new. They're all new. Okay. Sorry. That's very confusing. I apologize. Okay. Thank you, Commissioner. Thank you, Chair. Yes, ma'am. Thank you, Council Member. Next, we have Council Member Reynolds. Thank you, Chair. I want to thank you, Commissioner, for this wonderful presentation, all your hard work, your whole team's hard work, and to the Mayor. I've been around now for several years, and this is one of my favorite budgets. It really is. I'm very pleased with how well-rounded and thoughtful it is. I really don't have a lot, except I wanted to, first of all, say you all have done a fantastic job over the past few years getting the debt service down and getting it as close as can be to that 10%. And that's a really big feat. Earlier, you mentioned that you moved some things out that you didn't want to put all the vehicles in there because it takes a few years. So, can you explain for the public how you picked what is in the bond package? Absolutely. So, one of the, and I mentioned it a little bit before, one of the things that we really tried to not put in the bond was the fire vehicles because the delivery time is so long. Used to be maybe we were 18 months to two years, now we're looking at three years plus to get delivery. And not only are we paying interest on that money for that period of time where we're not receiving those vehicles, we actually get penalized if we don't spend those dollars in a timely fashion. When we bond money, their expectation is that we spend it for the purposes in which it is intended. So, we're not able to hold that money and invest it and earn interest on it. And so, we really need to turn it around. And so, we have prioritized putting the fire vehicles in cash as opposed to bond. Now, unlike that, our police vehicles and our general government fleet turns around pretty quickly, or has, post-COVID. We've been able to get those done pretty quickly. And so, we're able to bond that fleet and get that turned around pretty quickly. WANDA's able to go ahead and order those and get those in and fit up and out on the street. And so, we were able to put those in. Paving dollars is also something that turns around pretty quickly. As soon as we can get those dollars to our streets and roads friends, they get them right out. And so, that is something that we are able to bond as well. We did reallocate some previously bonded funds that we had originally bonded for the government center. We had originally intended to do furnishings and equipment. That was in a previous bond. It is taking a little bit longer to get there than we thought it would. And so, some of those dollars were reallocated for paving this year, noting that we'll have to cross that bridge again when we get there. Again, for highest and best use at this point in time. And that really helped us keep this bond package a little bit lower. And so, we'll revisit that when that comes due. But again, some of these things are things that we know will turn around very quickly and things that we know that we can spend. And so, really kind of looking at our resources that we had available and trying to figure out what the useful life is going to be and how quickly we can get the money out the door, how quickly we're going to need it, kind of helps us figure out where the best placement is for the project and if we're going to prioritize using bonded dollars or cash. Thank you. And could you just break down really quickly, you just mentioned paving, where the other portions are? Yep. We have $3 million in MAP, $5.5 million in reallocated bonded dollars, and $5.5 million in new bonded dollars. All right. Thank you very much. Thank you, Chair. Thank you, Council Member. Next, we have Council Member Sheehan. Thank you, Chair. Thank you, Commissioner, for this presentation. Could you go back to slide 14? Which one's slide 14? That one? Yes. So, on this slide, it mentions the Neighborhood Traffic Management Program that's in other funds, and I know occasionally we talk about how much money goes into that program, because it is one of the most popular programs from the community that gets used. Which fund does that come out of? Is that in MAP? MAP. Okay. I thought in the past we have discussed it in our general fund conversations, that's why I'm asking, but then maybe we have matching that goes into MAP that relates to that, or no? It may be that we just talk about it in the world of... In the same conversations? Okay. Thank you. And then, can you flip to the next slide? Thank you. I appreciated that you broke down the public safety budget here, because we sometimes get questions about that, because we talk about it as being a significant part of our budget, so I like the breakdown, because not everybody knows what actually goes into public safety and all of the different divisions that are included there. Is it possible for us to get the percentage breakdown of those? Sure. Absolutely. After the presentation? And then, the other question I have about this slide is, on the partner agencies, the 5% and it shows includes the library, what is the percentage of that fund that goes to the library? It's the vast majority. That's what I thought. I was thinking like maybe 4% of that is the library, but I would like that breakdown as well. Okay. And then, I do want to, of course, thank the mayor for this budget, and particularly for including the outreach coordinator for the Office of Homelessness Prevention and Intervention. I think that would be a very meaningful position for working with the encampments and providing services throughout our community, so thank you for that. Thank you. Thank you, Chair. Thank you, Councilmember. Next, we have Councilmember Beasley. Thank you, Chair. Thanks, Commissioner, for giving us this presentation. I don't have a question. I just have a comment, and I just want to thank the mayor and all the teams for making sure that we funded the community centers, giving them that dedicated money for programming is going to be essential into saving some of the lives of the youth in our community, so I just want to say thank you. Great job. Thank you, Chair. Thank you. Next is Councilmember Morton. Thank you, Chair. Same difference. So, thank you to you and your team for this budget. Likewise, thank you for adding the three pages regarding direct community investments. I'm always big on investing and saying investing in the people, and I think that's a great start that shows those investments towards investing in people, and I'll double down on Councilmember Beasley's sentiments. I believe, and I want to thank the mayor, as well, for adding the community center programming into the budget. I strongly believe that that's just the start of, you know, when we talk about addressing gun violence and talking about addressing safety, it's multifaceted, and it's not just, you know, single offices. All these offices add together, including youth program, including parks and all these things, and I want to thank the mayor for putting that in there and the first step of starting to address that whole spectrum of violence and strengthening our communities, making our communities safer but also healthier. So, thank you. Well, and actually, my bad. Apologies. My apologies. I just have one question. Can you talk about our contingency fund? What do we have in that, and do we have any, like, where we're going with that regarding this budget? Do we have anything we're putting in, or are we waiting for fund balancer? Yeah, that's a great question, and I should have included that balance. I'll get a balance back to you, but we did fund the ordinance-driven transfers every month to the contingency fund, and then we will readdress the allocation of any fund balance at the fund balance conversation. I'll get you the balance. Thank you. Next, we have Vice Mayor Wu. Thank you, Chair. I want to add my gratitude as well for the additional CASA funding. It goes a great long way to kind of bring us up to par to funding levels from with our neighbors, so I really do appreciate that. I want to follow up with my question and comments earlier about the federal funding and sort of our plan Bs and contingencies. I know that those things are so complicated, as you kind of illustrated, like certain things that we've already gotten previously funded and we have to pay for. So, I know that if they were to come down tomorrow and say we're cutting funding to X, Y, and Z, it wouldn't be a simple matter of the spigot just shutting off. I think it would be different depending on what the grants and what the programs are. So, I would definitely appreciate it. I know you and your team will do this anyway, but as much clarity as you can provide with when those things start to happen, if they happen, and hopefully they won't, but when those things start to happen, for us to know what our time frame is, like okay, this program is okay until October of this year, and then after that there's no more funding, so we have to figure something out, whereas this thing we can't pay for right now, or this thing is good for another year, whatever it is. So, we have a better sense of that time frame of do we need to urgently deal with it right now in this budget cycle? Is it something we can look at a fund balance? Is this FY27, etc.? Yes, we do have grants. Unlike our budget, we have grants that start and stop in every single month of the year. So, there is no beginning and end of the grant cycle. They're constantly beginning and ending, and some of them are one year, some of them are five years, some of them are three years, and everything in between. And so, it is, you know, we do have a myriad of different options. Yeah, and we appreciate you keeping us up to date on that. Thank you. Thank you, Chair. Thank you, Vice Mayor. I'm going to ask a question. Okay. Council Member Allenger. Thank you, Chair. A follow-up on Council Member Morton. What was, can you remind me the ordinance with the economic contingency? Is it $75,000 a month? Yes. And do we, at one point, we put in a percentage of surplus. Do we do that anymore or not? It is of the fund balance, and I believe it's 10%. It's what? 10%. Is that 10%? Okay, that's what I want. And I will come back with a motion later. Thank you. Thank you, Council Member. Thank you, Commissioner, for the presentation. I don't see any other questions, so we'll go to the next item on the agenda. And Council Members, in recent years, we've used this meeting to adopt the revenue, or we have a discussion about the revenue number, or adopt the revenue number as presented by the administration. So, with that, I would entertain a motion to adopt the revenue number as proposed in the Mayor's budget. Council Member Allenger. Thank you, Chair. I move to adopt the total funds available amount of $520,939,560 for the purposes of the Council discussions of the Mayor's proposed fiscal year 2026 general fund budget. So moved. Second. All right, a motion was made and seconded. I'll let Kelly figure out who seconded. Are there any questions to the motion? Well, I'll ask a quick question, and just clarity from the Commissioner. Can you just explain to the Council the formula that you used to come up with the revenue number? The formula? Well, based off of Dr. Clark's advice. I was going to say, there's definitely not a formula. So, we do take Dr. Clark. Dr. Clark looks at the payroll withholding and the net profits with us. And that was the presentation that you all saw. And then we take a look subsequent to that at the following month's collections. And if there's significant increases or decreases from that, we can make adjustments to the recommendations from him in the budget. And we have not seen anything that is causing us to move from that. And so, the net profits and the payroll withholdings that are in the budget are based on his recommendation. And then we go line by line for every other revenue source that is in our budget. And if it is parks revenue, we talk to parks. And if it is corrections, we talk to corrections. And depending on what it is, we go when we look at historical collections and we look at what we think the operations are going to be. And so, we very specifically look at all of the different revenue line items. Okay. Yes, sir. Yeah. Thank you for that. So, if there's no other questions, all those in favor, please say aye. Aye. Are there any that oppose? Hearing none, that motion passes. It brings us to the end of our agenda. The mayor's office and her team have done their part. And now it's up to us and Kelly to do our part. So, good luck council members with your budget links. And if there's no objections, consider this meeting adjourned. Thank you.