Oct 13, 2020 City Council Meeting 3pm

[00:00:05]

GOOD AFTERNOON, EVERYBODY.

[ CALL TO ORDER: Mayor Bill Wells]

WE CONTINUE THE WHOLE MEETINGS, REMOTE MEETINGS WHILE THE GOVERNOR'S EXECUTIVE ORDER CONTINUES TO BE IN FACT, DUE TO COVID-19 PANDEMIC, I'D LIKE TO REMIND OUR CITIZENS.

THEY CAN SUBMIT QUESTIONS FOR ITEMS ON TODAY'S AGENDA.

AS WE HAVE DONE IN PREVIOUS MEETINGS, I ENCOURAGE THAT PUBLIC COMMENTS BE SUBMITTED AT THIS TIME.

THEY WILL BE READ AT THE APPROPRIATE TIME.

DURING THIS MEETING, COMMENTS WILL BE ACCEPTED UP TO THE CONCLUSION OF THE VOTE OF THE ITEM.

COMMENTS MAY BE SUBMITTED THROUGH THE CITY OF ALCOHOL'S WEBSITE@CITYOFALCOHOLAND.US UNDER AGENDAS AND MINUTES.

GO TO THE VIDEO STREAMING AND YOU WILL SEE A BUTTON TO SUBMIT YOUR COMMENTS.

THE MEDIA IS CALLED THE ORDER.

I'D LIKE TO ASK OUR CITY CLERK TO CALL THE ROLE.

THANK YOU, SIR.

GENTLEMEN, IF YOU CAN PLEASE STATE YOUR, THAT YOU ARE PRESENT WHEN I CALL ON YOUR NAME, MAYOR WELLS, DEPUTY MAYOR OR TESE I'M HERE.

COUNCIL MEMBER GLOBAL COUNCIL MEMBER, KENDRICK AND COUNCIL MEMBER MCCLELLAN HERE.

THANK YOU.

OKAY.

WOULD YOU ALL THEN STOP PLEASE SAY THE PLEDGE OF ALLEGIANCE WITH ME AND THEN, UH, WAIT FOR A MOMENT OF SILENCE.

AFTER THAT READY BEGIN.

I PLEDGE ALLEGIANCE TO THE REGIONS OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC AND REPUBLIC ONE NATION UNDER GOD, INDIVISIBLE INVISIBLE.

JUST THANK YOU EVERYBODY.

THE

[ POSTINGS: The City Clerk posted Orders of Adjournment of the September 22, 2020, Meeting and the Agenda of the October 13, 2020, Meeting in accordance to State Law and Council/Authority/Successor Agency to the Redevelopment Agency Policy.]

[ PRESENTATIONS: Presentation: 92020 Day Proclamation: National Planning Month]

THE FIRST IS THE PRESENTATION REGARDING NINE TWO OH TWO OH DAY.

AND OUR DIRECTOR OF RECREATION.

FRANK CARSON WILL TELL US ABOUT THIS, RIGHT? THANK YOU MIRROR.

JUST TRYING TO MY COMPUTER SICKNESS.

THERE WE GO.

UH, AT THE REQUEST OF COUNCIL, WE WANT TO DO A BRIEF PRESENTATION ON OUR NINE TWO OH TWO OH DAY.

THAT MATCHES OUR ZIP CODE SEPTEMBER 20TH, 2020.

UH, WE HAVE VERY GOOD SUPPORT FROM COMMUNITY CONSIDERING WE ARE STILL IN THE COVID-19 ENVIRONMENT.

SO JUST TO GIVE YOU A LITTLE BIT OF A BRIEF RUNDOWN, IT WAS ON SEPTEMBER 20TH, 2020, HENCE THE NINE TWO OH TWO OH DAY.

WE HAD A LITTLE OVER 80 VOLUNTEERS IN TOTAL.

UH, THREE TRUCKLOADS OF TRASH WERE COLLECTED.

WE HAD 37 ITEMS OF GRAFFITI REMOVED OR MORE OR LESS PAINTED OVER COVERED UP, AND WE HUNG IT 449 SITES.

I WANTED TO MAKE SURE I GOT THAT JUST UNDER 450.

SO A LOT OF SIGNS WERE HUNG AND I KNOW PEOPLE ACTUALLY ON THIS MEETING RIGHT NOW, WE'RE ALSO RESPONSIBLE FOR THAT.

UH, ALSO IN ADDITION TO THAT, WE DO, WE HAVE VOLUNTEERS FROM RED HILLS HIGH, DO ONE TRUCK LOAD OR MULCH RIGHT OUT IN FRONT OF HERE AT CITY HALL.

UH, FIVE CANVASES WERE PAINTED AND THESE ARE PAINT BY NUMBER CANVASES.

I'LL SHOW YOU AN IMAGE OF THAT AND JUST A LITTLE BIT, BUT, UM, WE TRY TO GET EVERY VOLUNTEER AND EVERYBODY INVOLVED IN THE DATE IN PAINTING THOSE, UH, WE HAD THIS MURAL AND THIS IS ABOUT 85% COMPLETE RIGHT NOW.

IT IT'S GOING TO TAKE HER.

SHE SAID ABOUT FOUR MORE VISITS TO GET THE MORE FINER DETAILS.

UH, BUT SHE IS IN THE PROCESS OF COMING BACK ON A WEEKLY BASIS.

JUST THE MORE FINER DETAILS.

THIS IS A CELEBRATED ENTRYWAY AT WELLS PARK AND PART OF CRIME PREVENTION THROUGH ENVIRONMENTAL DESIGN.

YOU WANT A CELEBRATED ENTRY RATE WANTING TO BE WELCOMING.

SO THAT'S WHY WE CHOSE THE WORD WELCOME, YOU KNOW, THE NEEDLES.

AND THEN ALSO THE WORD WELCOME IN ARABIC.

SO PEOPLE HAVE, THERE ARE THREE PRIMARY LANGUAGES TURN UP AND FELT WELCOME THERE.

WE HAD ONE MORE BOB DJ AND I'LL SHOW YOU SOME HIGHLIGHTS OF THAT MOBILE DJ.

AND THEN WE ALSO DID ABOUT THREE ART ITEMS FOR THE DOG PARK.

AND I'LL SHOW YOU A COUPLE OF JUST FOR THAT.

SO WHAT YOU SEE HERE ARE ALL OF OUR DIFFERENT VOLUNTEERS, HELPING OUT WITH THE PAINT BY NUMBERS, CANVASES, THAT WE WILL EVENTUALLY HANG HERE IN CITY HALL, AS BASICALLY WITH HIGHLIGHTS OF DIFFERENT THINGS THROUGHOUT THE CITY, WITHIN THE NUMBERS.

AND WE ALSO HAVE POSTCARDS THAT WE GAVE OUT TO THE VOLUNTEERS, UM, THAT HAD 9,202 OH ONE AND ALSO TO CELEBRATE THE DAY, UH, THE VOLUNTEERS GOT T-SHIRTS A SWAG BAG THAT HAD HAND SANITIZER AND SOME LIP BALM WITH NINE 202 OH ONE AS WELL.

UM, WE HAD A SMALL GROUPS OF THREE PEOPLE PAINT THESE, AND WE'RE GONNA HANG THESE IN A DOG PARK.

ONCE WE GET A NICE COVER OVER THEM JUST TO PROTECT THEM FROM THE SUN.

BUT THESE ARE SOME, SOME ARTWORK THAT WE HAD DONE FOR THE DOG PARK.

UM, AND THEN THE 449 SIGNS, WE HUNG SOMEWHERE.

THESE ACTUAL WALKING

[00:05:01]

UM, AND WE HAVE SOME OF THESE MORE FUN ONES.

SO IT'S A 10 MINUTE WALK TO A POOL FROM THIS LOCATION.

IT'S A 10 MINUTE WALK TO FRESH CUT FLOWERS.

WE EVEN HAVE IT'S A 10 MINUTE WALK TO TACO IS IT'S A 10 MINUTE WALK TO KEBABS JUST TO GET PEOPLE RECOGNIZING THAT THEY CAN WALK 10 MINUTES TO THESE DIFFERENT LOCATIONS FROM EXACTLY WHERE THEY'RE AT TO KEEP COMMERCE MOVING AND DO A LITTLE FOOT TRAFFIC WITH IT TOO.

UH, SO BEAR WITH ME.

I'M GOING TO TRY TO PLATE THREE, THESE QUICK VIDEOS THAT WE DID OUR INSTAGRAM STORY, UH, WITH OUR MOBILE DJ HERE, I MIGHT HAVE TO DO IT WITHIN THIS SYSTEM HERE.

SO LET'S TRY.

SO THE MOBILE DJ WE HAD, WE HAD VERY SMALL GROUPS ANYWHERE FROM WHAT YOU SAW, TWO TO 10 TOTAL, UH, WE HAVE COUNCIL MEMBER OR DIPPING MIRROR T'S HERE FEATURES, SO THOSE LITTLE DANCE, AND THEN WE HAVE A COUNCIL MEMBER GOOGLE RIGHT HERE.

SO HIGHLINE THAT'S THE SIGNS THAT THEY WERE HANGING, BUT IT WAS MORE OR LESS TRYING TO MAKE IT A FUN EVENT.

WE WANTED TO EXPERIMENT WITH THE MOBILE DJ, JUST IN CASE WE WANTED TO INCORPORATE THAT IN FUTURE EVENTS, GIVEN THAT WE CAN'T HAVE LARGE GATHERINGS RIGHT NOW, HE WOULD BRING THE MOBILE DJ TWO BLOCKS OR TWO NEIGHBORHOODS AND DO SOMETHING LIKE THAT.

SO THIS WAS MORE OR LESS OUR EXPERIMENT WITH THAT.

ALSO IT ADDED A FUN TWIST TO IT.

UH, AND THEN ESPECIALLY WE WANT TO THANK OUR SPONSOR.

WE WERE PREPARED TO TAKE UP TO 200 VOLUNTEERS.

UH, WE HAD A LITTLE OVER 80 AND GIVEN THE CLIMATE, I WAS HAPPY WITH THE 80 THAT WE DID HAVE.

UH, SO THE LEFTOVER MATERIALS, WE ARE REBRANDING IT WORKING WITH WASTE MANAGEMENT OR SPONSOR TO GIVE OUT BUCKETS.

SO THESE ARE, UH, LOVE YOUR NEIGHBORHOOD BUCKETS OR LOVE YOUR COMMUNITY BUCKETS.

AND IT WILL HAVE TRASH PICKERS IN DIFFERENT ITEMS FOR THEM TO ALSO CLEAN UP THEIR OWN COMMUNITY.

WITHIN WHERE THEY'RE AT.

THIS IS A SIMILAR CONCEPT TO, I LOVE A CLEAN SAN DIEGO, WHERE THEY PUT PEOPLE ON THE BEACHES TO THINK OF CIGARETTE BUTTS AND SIMILAR THINGS.

WE WANT TO ACTIVATE DIFFERENT NEIGHBORHOODS TO ALSO DO SOME LIKE THIS, GIVEN OUR, OUR EXTRA SUPPLIES THAT WE DO HAVE.

AND THAT COMPLETES MY PRESENTATION.

ALRIGHT, THANK YOU VERY MUCH.

UM, NEXT WE HAVE A PROCLAMATION FOR NATIONAL PLANNING MONTH.

I READ THE PROCLAMATION THAT I'LL INVITE CHAIRMAN PAUL CIRCLE TO SHARE A FEW WORDS WITH US.

MONTH OF OCTOBER IS DESIGNATED AS NATIONAL COMMUNITY PLANNING MONTH THROUGHOUT THE UNITED STATES, WHICH IS AS AN OPPORTUNITY TO HIGHLIGHT THE CONTRIBUTIONS OF SOUND PLANNING AND PLANNING, IMPLEMENTATION DESIGN, TO IMPROVE THE QUALITY OF OUR COMMUNITIES AND ENVIRONMENT.

AND WHEREAS THE CELEBRATION OF NATIONAL COMMUNITY PLANNING MONTH GIVES US THE OPPORTUNITY TO PUBLIC RECOGNIZE THE PARTICIPATION AND DEDICATION OF THE OKLAHOMA PLANNING, COMMISSIONERS, STAFF PLANNERS, AND ADMINISTRATIVE STAFF WHO HAVE CONTRIBUTED THEIR TIME AND EXPERTISE TO THE IMPROVEMENT OF THE CITY OF ALCOHOL.

AND NOW THEREFORE I BILL WELLS MARROW, THE CITY OF ALCON TOGETHER WITH THE CITY COUNCIL DO HEREBY PROCLAIM THE MONTH OF OCTOBER, 2022 BE COMMUNITY PLANNING MONTH IN THE CITY OF ALCOHOL IN CONJUNCTION WITH THE CELEBRATION OF NATIONAL COMMUNITY PLANNING MONTH, JOINING US AND APPLAUDING THE MANY VALUABLE CONTRIBUTIONS MADE BY THE CITY OF OKLAHOMA PLANNING, COMMISSION, STAFF, AND PARTNERS.

AND PAUL, ARE YOU HERE, MR. SIR, I'LL COME TO YOU.

THANK YOU.

UM, AND I APPRECIATE THE RECOGNITION.

WE APPRECIATE PARTNERING WITH THE CITY OF EL CAHONE AND ALL THE THINGS THAT WE GET TO WORK WITH.

YOU GUYS PROVING OUR CITY AND KEEPING ELK ON A PLACE WHERE PEOPLE CAN WORK, PLAY AND LIVE.

THANKS, PAUL.

AND THANKS THE WHOLE, UH, PLANNING COMMISSION AND STAFF, UM, FROM THE CITY COUNCIL.

I APPRECIATE IT.

YEAH.

TONY ON THERE TOO.

YEAH.

THANK YOU.

ALRIGHT.

MOVIE'S AGENDA CHANGES.

STAFF.

DO YOU HAVE ANY AGENDA CHANGES MR. MAYOR MEMBERS OF THE COUNCIL? WE HAVE NO CHANGES TO THE AGENDA COUNCIL MEMBERS AND THE AGENDA CHANGES.

NO.

ALRIGHT.

THAT THEN BRINGS

[7. CONSENT ITEMS: Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.]

ACCORDING TO THE RECOMMENDATION LISTED BELOW WITH THE CONCURRENCE ON THE CITY COUNCIL MEMBER OR PERSON IN ATTENDANCE MAY REQUEST DISCUSSION OF A CONSENT ITEM AT THIS TIME.

COUNCIL MEMBERS, DO YOU WISH TO PULL ANY CONSENT ITEMS? STAFF.

[00:10:04]

I'LL MAKE A MOTION.

THEN THEY APPROVE THE CONSENT ITEMS. SECOND MAYOR WELTER VOTE PLEASE.

YES.

DEPUTY MAYOR OR TEAS.

YES.

COUNCIL MEMBER GLOBAL.

YEAH.

COUNCIL MEMBER KENDRICK.

YES.

AND COUNCIL MEMBER MCCLELLAN.

YES.

MOTION CARRIES BY UNANIMOUS VOTE.

THANKS ANGELA.

[ PUBLIC COMMENT: At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.]

ANY PERSON MAY ADDRESS A MATTER WITHIN THE JURISDICTION OF THE CITY COUNCIL HOUSING AUTHORITY SUCCESSOR AGENCY TO THE ELKHORN REDEVELOPMENT AGENCY THAT IS NOT ON THE AGENDA COMMENTS RELATED TO ITEMS ON TODAY'S AGENDA ALREADY BE TAKEN AT THE TIME, THE ITEM WAS HURT.

STATE LAW, PROHIBITS ACTION OR DISCUSSION ITEMS, NOT ON THE AGENDA.

HOWEVER, CITY COUNCIL AND HOUSING AUTHORITY MEMBERS MAY BRIEFLY RESPOND TO STATEMENTS OR QUESTIONS AND AN ITEM MAY BE PLACED ON A FUTURE AGENDA.

ANGELA, DO YOU HAVE ANYBODY THAT'S PUTTING A PUBLIC COMMENT? YES, SIR.

I HAVE SIX COMMENTS THAT WE RECEIVED.

UM, THE FIRST ONE IS FROM STEPHANIE HARPER AND IT READS TRANSPARENCY IS SOMETHING THAT IS A MUST IN ANY FORM OF GOVERNMENT FOR THE PEOPLE YOU ARE PRESENT.

THIS IS VERY IMPORTANT BECAUSE THEY DEPEND ON IT.

THEY DEPEND ON KNOWING YOU ARE HONEST WITH OUR TAX DOLLARS, WHAT IT'S BEING USED FOR, AND TO MAKE SURE IT GOES THERE TOO MANY POLITICIANS, NOT BEING HONEST HAVE COST TOO MANY PEOPLE TO GIVE UP ON OUR GOVERNMENT SO THEY DON'T VOTE.

THIS IS SO VERY WRONG TO DO TO OUR CITIZENS AT THE PEN ON YOU TO MAKE SURE THEY HAVE A FUTURE IN THE CITY.

THEY LIVE IN MEASURE AS WAS PASSED.

SO EACH CITIZEN AND EVERY DISTRICT WOULD BE FAIRLY REPRESENTED BY SOMEONE WHO LIVES IN THEIR DISTRICT.

THAT'S WHAT THE MEASURE WAS SUPPOSED TO DO.

IF IS A QUESTION REGARDING THE TRUTH OF RESIDENTS ISSUED, BE INVESTIGATED BECAUSE OF THAT PERSON WAS TO BE ELECTED AND ONLY, AND ONLY TO FIND OUT LATER THAT PERSON GAVE FALSE INFORMATION.

IT WILL COST THE CITY MONEY TO DO ANOTHER ELECTION OR TO APPOINT SOMEONE ELSE IN.

SO HOW FAIR IS IT TO EVERYONE WHO WAS HONEST TO RENT THAT RAN IN THAT RACE QUESTION, MARK, THERE ARE LOTS OF MONEY OVER A LIE QUESTION, MARK.

BUT WHAT IS EVEN WORSE THAN THAT IS THE VOTERS WHO WERE LIED TO WHO WILL FEEL BETRAYED ONCE AGAIN BY THEIR GOVERNMENT.

SO I SUGGEST THAT THERE BE A CLAUSE OR AMENDMENT PUT IN TO OUR CITY'S CHARTER.

LIKE IT SHOULD HAVE BEEN FROM THE TIME MESHER S WAS PASSED.

THIS IS OUR VOTE THAT IS BEING COMPROMISED AND LYING ABOUT ANYTHING AT ANYTIME IS WRONG.

I REALLY WANT COUNCIL TO THINK ABOUT THIS SO WE CAN, SO WE COULD ALL USE MORE HONESTY.

AND THEN THE NEXT, UH, FIVE COMMENTS WERE SUBMITTED, UH, ANONYMOUSLY.

UH, THE FIRST ONE READS.

I FEEL THAT IF YOU DO NOT LIVE IN DISTRICT TWO, YOU SHOULD NOT RUN FOR DISTRICT TWO.

IT WOULD BE VERY UNFAIR.

IF YOU DID.

WE NEED SOMEONE WHO IS HONEST AND TRUSTWORTHY.

SOMEONE WHO WILL FIGHT FOR US.

NEXT COMMENT.

IF YOU DON'T LIVE IN THE DISTRICT, THEN WHY WOULD YOU RUN IN THAT DISTRICT QUESTION, MARK, JUST MORE LIES.

WHY'D THIS.

AND HE EXPLAINED HOW HE CAN LIVE WITH HIS MOM, BUT WIFE LIVES SOMEWHERE ELSE.

QUESTION MARK, NO MORE LIARS.

AND OUR GOVERNMENT MAKE THIS GUY PROVE HE IS LIVING IN DISTRICT.

THIS IS A RECENT PEOPLE THAT DON'T VOTE EQUAL OR PRESENTATION, NO MORE LIVES.

NEXT COMMENT.

UM, THE NEXT ONE IS ACTUALLY FROM AMANDA EMERGENCE.

MY TOWN NEEDS ACTUAL REPRESENTATION BY THAT.

I MEAN, COUNCIL MEMBERS SHOULD ACTUALLY LIVE IN THE DISTRICTS.

THEY ARE RUNNING FOR.

I'M GETTING LIES ALL DAY FROM MY GOVERNMENT AND I'M SICK OF IT.

NEXT COMMENT AGAIN, ANONYMOUSLY SUBMITTED.

I BELIEVE THAT IT IS UNFAIR TO LET SOMEONE RUN FOR COUNCIL IN A DISTRICT.

THEY DON'T LIVE IN AND ACTING LIKE THEY DO LIVE IN THAT DISTRICT IS DECEITFUL TO THE VOTERS.

AND THE LAST COMMENT IS AGAIN, ANONYMOUS.

IS THIS TRUE QUESTION, MARK, IS THERE SOMEONE RUNNING FOR A DISTRICT THAT DOESN'T LIVE IN THAT DISTRICT QUESTION, MARK, THIS IS MESSED UP.

HOW CAN WE TRUST GOVERNMENT WHEN YOU ALLOW THINGS LIKE THIS TO HAPPEN? I DON'T THINK SOMEONE THAT LIVES IN ANOTHER DISTRICT SHOULD BE ABLE TO DO THAT.

MS. STEPHANIE HARPER SHOULD BE IN THAT SEAT.

WHY I'M HOMELESS AND HAVE BEEN FOR QUITE SOME TIME.

I'VE HAD MULTIPLE RUNS, RUN INS WITH ALCOHOL POLICE AND RECENTLY BEEN TICKETED, WHICH MAKES BETWEEN MY LADY AND I, WE HAVE 23 OF THEM IN THE PAST TWO AND A HALF YEARS.

BOTH OF US HAVE RECEIVED TICKETS FOR MY PUPPY BEING OFF A LEASH WHEN OTHER PEOPLE THAT ARE NOT HOMELESS, WALKING THEIR DOGS WITHOUT A LEASH.

SO WHAT GIVES I'M A HOMELESS MAN THAT WORKS EVERY DAY AND TRYING TO TAKE CARE OF MY LITTLE FAMILY,

[00:15:01]

SO WHEN MY POINT OF THIS IS I FEEL MS. HARPER IS MY VOICE BECAUSE I'VE GOTTEN NOWHERE TALKING WITH THE CPD.

WE NEED A VOICE AND I, AND MANY OTHERS FEEL SHE IS THE BEST CANDIDATE FOR COUNSEL AND FOR DISTRICT TWO.

AND THE COMMENT AND WE HAVE NO MORE COMMENTS, SIR.

THANKS VERY MUCH.

UH, THERE ARE NO WRITTEN COMMUNICATIONS ON TODAY'S AGENDA.

THERE ARE NO PUBLIC SERIES ON HIS AGENDA.

WE HAVE TWO

[12. Fiscal Year 2020-21 First Quarter Report RECOMMENDATION: That the City Council: Appropriates carry-over funding of $4,167,408 from previously approved Capital Improvement Projects, capital outlay requests, and programs to be expended in Fiscal Year 2020-21; and Increases or modifies Fiscal Year 2020-21 appropriations in the net amount of $2,514,709 for additional needs as detailed in the report.]

I HAD 12 WAS THE FIRST QUARTER REPORT FOR FISCAL YEAR 20 THROUGH 21.

AND I'LL ASK STAFF TO INTRODUCE THIS ITEM, PLEASE.

MR. MAYOR MEMBERS OF THE COUNCIL, UH, OUR FINANCE DIRECTOR, CLAY.

SHANE IS COMING ONLINE RIGHT NOW.

GOOD AFTERNOON, EVERYONE.

GOOD AFTERNOON, HONORABLE MAYOR, DISTINGUISHED MEMBERS OF THE CITY COUNCIL.

MY NAME IS CLICHED.

I'M THE DIRECTOR OF FINANCE FOR THE CITY OF OKLAHOMA.

AND TODAY WE'RE HERE TO PRESENT THE FISCAL YEAR 2021 FIRST QUARTER REPORT THIS REPORT.

FRANK, CAN WE GO AHEAD AND SHARE SCREENS, PLEASE? YOU SHOULD BE ABLE TO HAVE ACCESS AND THERE WE ARE.

THIS REPORT'S A LITTLE MORE ROBUST THAN IT TYPICALLY IS.

UM, WE HAVE A LOT MORE MATERIAL THAN WE TYPICALLY DO IN AN AVERAGE FISCAL YEAR.

UM, IN TODAY'S PRESENTATION, WE'LL BE DISCUSSING THE, A BRIEF OVERVIEW AND OUR ECONOMIC ENVIRONMENT BRIEFLY TOUCH ON SALES TAX.

DISCUSS OUR FYI 20 RESULTS BRIEFLY GO OVER ARE THE OUTLOOK FOR FISCAL YEAR 21, DISCUSS A LITTLE HOUSEKEEPING, WHETHER FIRST QUARTER BUDGET ADJUSTMENTS, AND THEN DISCUSS CALPERS AND OUR PENSION LIABILITY.

STARTING WITH THE ECONOMIC OUTLOOK.

WE DON'T HAVE A WHOLE LOT OF NEW NEWS TO SHARE FROM WHEN WE WERE IN FRONT OF YOU LAST, UM, THE GROSS DOMESTIC PRODUCT, UH, ESTIMATE FOR QUARTER TWO OF 2020 HAS BEEN REVISED A COUPLE OF TIMES.

HOWEVER, THEY'RE CURRENTLY HOLDING AT 31.4% DOWN.

UM, AND THIS IS CONSISTENT WITH WHAT WE'VE PREVIOUSLY DISCUSSED.

A THIRD QUARTER ESTIMATE IS DUE OUT AT THE END OF THIS MONTH.

AND I THINK THERE'S A LOT OF PEOPLE THAT ARE ANXIOUSLY WAITING TO SEE WHAT THAT LOOKS LIKE.

I THINK THE OPTIMISTS ARE EXPECTING A BOUNCE BACK TO SOME EXTENT THE UNEMPLOYMENT RATE HAS IMPROVED DRAMATICALLY.

WHEN WE WERE IN FRONT OF YOU IN MAY, WE WERE LOOKING AT UNEMPLOYMENT RATES IN THE NEIGHBORHOOD OF 15% AS OF SEPTEMBER, THE NATIONAL UNEMPLOYMENT RATE HAS IMPROVED TO 7.9%.

THE STATE UNEMPLOYMENT RATE IN AUGUST WAS 11.6 AND THE SAN DIEGO REGIONAL WAS 9.9 FOR THE SAME PERIOD.

THESE ARE NOT GREAT NUMBERS, BUT THEY ARE BETTER THAN THEY WERE ON THE INFLATION FRONT.

WE WERE LOOKING AT A 12 MONTH, UH, UH, CPI INCREASE OF 0.3% BACK IN APRIL, UM, THAT HAS IMPROVED OR GONE UP ANYWAYS, UH, IN AUGUST OF THIS YEAR, A 12 MONTH INCREASE OF 1.3%.

AND IT APPEARS THAT THAT'S BEGINNING TO GET BACK TO MORE, A MORE NORMAL LEVELS.

ADDITIONALLY, THE, UH, FEDERAL OPEN MARKET COMMITTEE IS EXPECTED TO MEET AGAIN AT THE BEGINNING OF NOVEMBER.

THEY CURRENTLY HAVE THE FEDERAL FUNDS RATES AT ZERO TO ONE QUARTER PERCENT AND HAVE INTONATED, UH, THAT THEY EXPECTED LEAVE THAT THERE FOR QUITE SOME TIME HOUSING AND CONSTRUCTION, UM, PERMITS, UM, ARE DOWN APPROXIMATELY 0.1% FROM LAST YEAR AND HOME STARTS ARE UP 2.8% FROM LAST YEAR, MOVING ON TO SALES TAX.

THERE'S AN AREA THAT WE HAVE WATCHED VERY, VERY CLOSELY AND WE'LL BOUNCE AROUND A LITTLE BIT WITH THEMES.

THIS, UH, THIS CHART CONTAINS BOTH REGULAR SALES TAX, AS WELL AS OUR PROP J SALES TAX.

UM, AND A COLUMN THERE TITLED SIMPLY PRE COVID PROJECTIONS.

THIS IS WHAT WE WERE LOOKING AT AND ANTICIPATING FOR THE NEXT FIVE YEARS, SIX YEARS AT THE START OF THE CALENDAR YEAR.

UM, CURRENTLY THOSE PROJECTIONS HAVE BEEN REVISED

[00:20:01]

WE'RE LOOKING AT A DROP IN SALES TAX.

SO BETWEEN FOUR AND FOUR AND A HALF MILLION DOLLARS A YEAR, WE'LL TALK A LITTLE BIT ABOUT MORE ABOUT THIS IN A MOMENT, BUT THIS IS QUITE A BIT BETTER THAN WE WERE LOOKING AT A COUPLE OF MONTHS AGO.

OKAY.

THE SAME INFORMATION PRESENTED GRAPHICALLY LOOKS LIKE THIS.

THE GREEN LINE ON THIS CHART REPRESENTS THE COMBINATION OF HISTORICAL SALES TAX RETURNS, AS WELL AS PLOTTING OUT THE CURRENT PROJECTION.

THE RATHER LARGE DIP TO THE LEFT OF THIS GRAPH IS THE GREAT RECESSION TO THE RIGHT.

YOU CAN SEE A LITTLE BIT OF A DEPRESSION WHICH REPRESENTS THE ANTICIPATED EVENT WE'RE CURRENTLY EXPERIENCING.

YOU CAN SEE JUST AT THIS LEVEL THAT THE ANTICIPATION IS THIS EVENT IS NOT EXPECTED TO BE NEARLY AS DEEP OR LESS, NEARLY AS LONG AS THE GREAT RECESSION, THE DOTTED RED LINE REPRESENTS HOW MUCH TIME IT TOOK FOR US TO RETURN TO THE PRE EVENT LEVELS.

IN THE CASE OF THE GREAT RECESSION, THIS TOOK SOMEWHERE IN THE NEIGHBORHOOD OF FIVE TO SEVEN YEARS BEFORE WE JUST GOT BACK TO WHERE WE WERE AT THE START OF THIS EVENT.

CURRENTLY WE'RE ANTICIPATING THIS TO BE MORE IN THE NEIGHBORHOOD OF TWO TO THREE YEARS, TO GET BACK TO WHERE WE ARE IN THIS GRAPH.

PLEASE ALSO TAKE NOTE OF THE BLUE LINE, WHICH REPRESENTS THAT PRE COVID ANTICIPATION OF WHAT WE WERE EXPECTING, THE PRE COVID PROJECTION OF SALES TAX.

AND AS WE HAVE PRESENTED IN THE PAST, THE DIFFERENCE BETWEEN THOSE TWO LINES, THE BLUE LINE AND THE GREEN LINE BELOW, IT REPRESENTS THE DROP IN SALES TAX.

AS A RESULT OF THIS EVENT, ONE OF THE THINGS I WANT TO CATCH US UP ON A LITTLE BIT HERE IS HOW WE'VE GONE FROM OUR LAST DISCUSSION TO WHERE WE ARE TODAY.

THE PROGRESSION OF PROJECTIONS, UM, THIS EVENT, UH, STARTED TO COME TO OUR ATTENTION OR THE EFFECTS WERE BEGINNING TO BE FELT RIGHT ABOUT THE SAME TIME WE WERE FINISHING OUR, UH, MIDYEAR REPORT AND FIVE-YEAR BUSINESS PLAN FOR .

WE DELAYED THE RELEASE OF THAT REPORT WHILE WE WERE WAITING FOR BETTER INFORMATION TO COME IN.

AND THIS IS A THEME YOU'LL HEAR ME REPEAT ON SEVERAL.

UM, SEVERAL TIMES IN THIS PRESENTATION, WE HELD OFF AS LONG AS WE COULD.

WE EVENTUALLY GOT TO A POINT THAT WE REALIZED WE WERE NOT GOING TO HAVE GOOD INFORMATION IN TIME FOR THAT REPORT.

AND WE WERE ONLY ABLE TO PROVIDE A HYPOTHETICAL SCENARIOS IN APRIL.

HOWEVER, IN MAY, WE CAME BACK WITH A REVISED FIVE-YEAR OUTLOOK AND IT REPRESENTED AT THAT TIME, A DROP IN SALES TAX OF ALMOST $7 MILLION A YEAR.

UM, SINCE THEN WE'VE GONE THROUGH JUNE, WE'VE RECEIVED A COUPLE OF UPDATES TO OUR SALES TAX PROJECTIONS AND THINGS ARE STARTING TO LOOK BETTER THAN WE ORIGINALLY ANTICIPATED.

UM, ONE BIG REASON FOR THAT IS THE GOVERNOR ALLOWED THE DEFERRAL OF BOTH SALES TAX PAYMENTS AS WELL AS REPORTING.

AND IT'S THE REPORTING ITSELF THAT REALLY HAS CAUSED US A LOT OF TROUBLE BECAUSE WE COULD SEE THAT WE WERE NOT RECEIVING THE MONEY THAT WE WERE ANTICIPATING, BUT WE DIDN'T KNOW IF IT WAS JUST A DROP OFF IN ACTIVITY ECONOMIC ACTIVITY, OR IF IT WAS JUST THE DEFERRAL OF PAYMENT SINCE THEN, THE DEADLINE FOR REPORTING HAS COME AND GONE.

AND THEREFORE WE HAVE A BETTER SENSE NOW OF WHAT WAS DEFERRED AND WHAT WE'RE MISSING, AND THAT LARGELY SUPPORT THE WHY THIS PROJECTION HAS CHANGED FOR THE GOOD, AS MUCH AS IT HAS.

HOWEVER, I WOULD STILL COFFIN.

IT IS EARLY.

STILL THIS EVENT IN TERMS OF FINANCIAL ACTIVITY IS STILL FAIRLY YOUNG AND EVOLVING ALSO FOR THE FISCAL YEAR, WHILE IT'S EASY TO SAY, WE'RE ALREADY OCTOBER FOUR MONTHS IN REALLY, WE'VE ONLY STARTED RECEIVING REVENUE IN SEPTEMBER FOR THE MOST PART.

UM, SO WE TAKE A CAUTIOUS LOOK AT THIS.

IT IS ENCOURAGING INFORMATION, BUT WE ARE LOOKING AT IT VERY CAUTIOUSLY.

ONE OTHER THING I WANT TO MENTION IS THIS EVENT REALLY IS A RESETTING OF THE TABLE, UM, THAT DROPPING THE BLUE LINE TO THE GREEN LINE LOOKING FORWARD REALLY IS A SIGNAL FOR US TO SEEK A NEW NORMAL.

UM, THE REALITY IS THIS ISN'T AN EVENT THAT WE STRUGGLE THROUGH FOR A YEAR OR TWO.

AND THEN WE JUST BOUNCE RIGHT BACK TO WHERE WE WERE LIKE NOTHING HAD EVER HAPPENED.

WE REALLY ARE STARTING AT THE GROUND FLOOR AGAIN, STARTING FROM A NEW SPOT AND WE DO NEED TO ADJUST THE WAY WE, WE RUN OUR BUSINESS.

CURIOUSLY.

IF YOU'VE EVER LOOKED AT ANY KIND OF GRAPHING OF THE CLICHE BUSINESS CYCLE OR ANYTHING ASSOCIATED WITH IT, YOU'LL SEE A VERY PREDICTABLE PATTERN.

IF YOU STAND BACK AND LOOK AT IT FROM A DISTANCE, YOU

[00:25:01]

HOWEVER, WHEN YOU GET IN AND LOOK CLOSELY AT IT, YOU SEE IT GROW, DROP, GROW DROP, AND THIS UNCERTAINTY IS THE RESULT OF THE BUSINESS CYCLE.

AND THIS IS PRECISELY WHY WE CARRY RESERVES AND PRECISELY WHY WE HAVE WORKED SO HARD TO BUILD THEM.

ONE OF THE REASONS THIS IS SO CRITICAL FOR THE CITY OF OKLAHOMA IS OUR RELIANCE ON SALES TAX SALES TAX REVENUE.

AS YOU'VE HEARD ME SAY ON NUMEROUS OCCASIONS, I CAN'T SAY IT ENOUGH REPRESENTS 44% OF GENERAL FUND REVENUES, BUT BEYOND THAT WITHIN THE, THE BROAD CATEGORY OF SALES TAX, THERE'S SEVERAL COMPONENTS THAT CONTRIBUTE TO THE TOTAL.

THE LARGEST OF WHICH IS TRANSPORTATION AT ALMOST 42% OF OUR SALES TAX DOLLARS.

THIS IS THE COMBINATION OF VEHICLE SALES, AUTO PARTS, SALES AND SERVICE STATIONS.

HOWEVER, VEHICLE SALES CONTRIBUTE TO 72% OF THAT TITLE OR TOTAL, AND REALLY UNDERLIES HOW CRITICAL THE, UH, AUTOMOTIVE MARKETS ARE HERE IN OKLAHOMA.

LOOKING AT THE SAME INFORMATION IN A SLIGHTLY DIFFERENT WAY IS TOTAL SALES TAX AND THE INDIVIDUAL CATEGORIES OVER TIME.

THIS IS QUARTER BY QUARTER PERFORMANCE OF IN THE CASE OF THE TOP LINE, THE BLUE LINE, TOTAL SALES TAX, BUT THE LINE DIRECTLY BELOW IT IS THE LARGEST CATEGORY TRANSPORTATION.

AND YOU CAN SEE HOW BOTH OF THESE LINES DROP OFF IN THE LAST TWO QUARTERS PRESENTED HERE, WHICH IS ONE AND QUARTER TWO OF 2020 CALENDAR YEAR 2020.

ADDITIONALLY, YOU CAN SEE THE SAME IMPACT AND THE GREEN LINE, WHICH IS RETAIL.

THE REMAINING CATEGORIES, FOOD CONSTRUCTION, AND BUSINESS TO BUSINESS ARE FAR MORE STABLE, BUT THEY ALSO CONTRIBUTE FAR LESS TO THE TOTAL.

THIS LEADS US TO FYI 20 RESULTS.

WE ENDED THE FISCAL YEAR WITH REVENUES TOTALING $78 MILLION.

THIS IS 1% OVER BUDGET.

AND A POINT TO THAT 0.2% DECREASE FROM THE PREVIOUS YEAR EXPENDITURES.

ON THE OTHER HAND, TOTAL $77.8 MILLION, WHICH IS APPROXIMATELY $1.1 MILLION UNDER BUDGET AND A 0.6% DECREASE FROM FYE 19 TAKEN TOGETHER.

THAT IS A NET INCREASE TO GENERAL FUND FUND BALANCE OF APPROXIMATELY $230,000.

THIS IS SIGNIFICANTLY BETTER THAN WHAT WE WERE ANTICIPATING AT THE TIME WE ADOPTED THE BUDGET.

AT THAT TIME, WE WERE ANTICIPATING A DRAW DOWN OF EXCESS REVENUES OR USE OF RESERVES FOR APPROXIMATELY $3.3 MILLION.

SEVERAL THINGS HAVE CONTRIBUTED TO THAT IMPROVED PERFORMANCE.

UM, THE FIRST OF WHICH IS A, A RATHER UNUSUAL ANOMALY RELATED TO A, AN ACCOUNTING ENTRY FOR UNREALIZED GAINS AND LOSSES.

THIS IS AN ACCOUNTING ADJUSTMENT WE'RE REQUIRED TO DO AT FISCAL YEAR END TO MARK OUR INVESTMENTS TO CURRENT MARKET VALUE.

AND WHAT THIS HAS DONE IS BASICALLY COMPELLED US TO BOOK $1.3 MILLION OF REVENUE THAT REALLY DOESN'T REPRESENT TRUE REVENUE.

ONCE THAT'S TAKEN INTO ACCOUNT, OUR RESULTS ARE MORE LIKE TWO TO $3 MILLION BETTER THAN WE, UH, MENTIONED OR DISCUSSED IN MAY.

AND JUNE.

PART OF THIS IS PROP J REVENUES WERE CAME IN OVER BUDGET BY APPROXIMATELY $800,000.

MMM.

ADDITIONALLY INVESTMENT REVENUE ITSELF WAS UP BY A VERY SIMILAR AMOUNT AND THEN EXPENDITURES WERE ABOUT HALF A MILLION DOLLARS LESS THAN WE ANTICIPATED ALL IN ALL.

WE WERE VERY HAPPY WITH EVERYTHING ELSE THAT HAS GONE ON TO END THE YEAR IN, IN SUCH A CONDITION CHANGING GEARS TO DISCUSS THE OUTLOOK FOR FISCAL YEAR 21 HERE AGAIN, THE STANDING CAVEAT IS IT'S STILL EARLY IN THE YEAR AND YOU WANT TO MAKE SURE YOU TAKE THIS WITH A GRAIN OF SALT.

THIS IS AN ATTEMPT TO SHARE INFORMATION.

UM, BUT THIS INFORMATION HAS TO BE USED VERY CAUTIOUSLY.

MANY OF THE INDICATORS WE'RE BASING THESE CONCLUSIONS ON ARE PRELIMINARY OR UNCONFIRMED ASSUMPTIONS, SIMILAR TO WHAT WE USE TO, UH, BUILD THE FYI 21 BUDGET.

HOWEVER, UM, THE ENCOURAGING NEWS IS SALES TAX PROJECTIONS, UH, ON THIS MOST RECENT UPDATES SUGGESTED AN ADDITIONAL $1.4 MILLION OF SALES TAX REVENUE BETTER THAN WE ANTICIPATED.

LAST ON THE EXPENDITURE SIDE, THERE WERE A COUPLE THINGS THAT CAME TO OUR ATTENTION THAT WE DECIDED WARRANTED A LITTLE CLOSER ATTENTION AS THE YEAR ON UNRAVELS, BUT MAYBE ON REBELS.

ISN'T THE BEST WORD

[00:30:01]

BUT BECAUSE IT IS SO EARLY IN THE YEAR, WE'VE CONCLUDED THAT WE DON'T FEEL THAT ACTION IS APPROPRIATE AT THIS TIME.

WE WILL CONTINUE TO MONITOR IT AND UPDATE YOU AT THE MIDYEAR REPORT HERE IN A FEW MONTHS, WHEN INFORMATION IS A LITTLE BIT BETTER AND WE HAVE A LITTLE MORE CONFIDENCE IN WHAT WE'RE SEEING, THE BIG TAKEAWAY FROM THAT.

AND WHY I WANTED TO SHARE THIS INFORMATION IS THAT IT APPEARS THAT THE IMPACTS FROM THE PANDEMIC HAVE STABILIZED A BIT IN APRIL AND MAY.

WHEN WE WERE DISCUSSING THIS, THERE WAS A DISTINCT SENSE THAT THE BOTTOM WAS FALLING OUT AND THINGS WERE GETTING WORSE.

AND EVERY DAY IT FELT LIKE THE NEWS WAS WORSE AND WORSE AND WORSE.

WHEREAS IT FEELS LIKE NOW VERY MUCH THAT WE'VE KIND OF LEVELED OFF AND THIS IS KIND OF THE NEW NORMAL.

WE HAVE NOTHING TO SUGGEST THAT THERE WILL BE CONTINUING, UH, UH, WORSENING OF CONDITIONS.

THE HOUSEKEEPING PART OF THE REPORT IS RELATED TO OUR FISCAL YEAR 21, UH, RECOMMENDED, UH, BUDGET ADJUSTMENTS.

THE BIGGEST COMPONENT OF WHICH IS $4.2 MILLION OF CARRY OVER FUNDING.

THIS IS A ROUTINE ACTION WE TAKE AT THE FIRST QUARTER OF EVERY FISCAL YEAR.

AND IT'S THE WAY OF CONTINUING, UH, PREVIOUSLY APPROVED ITEMS INTO THE NEW FISCAL YEAR, THE PREPONDERANCE OF THESE, THIS BALANCES, CDBG AND HOME PROJECTS THAT ARE BEING CARRIED OVER IN THE NEW YEAR.

UM, BUT THERE ARE ALSO A NUMBER OF SMALLER ITEMS THAT JUST SIMPLY DIDN'T FOLLOW THE TIMELINE THAT WAS ORIGINALLY ANTICIPATED IN THE BUDGET NEED TO BE CONTINUED.

AS I SAID, THIS IS A CONTINUATION OF PREVIOUSLY APPROVED ITEMS. THE SECOND COMPONENT OF WHICH DOES REPRESENT NEW SPENDING, AND WE'RE REQUESTING AN INCREASE IN APPROPRIATIONS TOTALING $2.5 MILLION, AND THAT'S MADE UP OF FIVE ADJUSTMENTS.

THE FIRST TWO OF WHICH ARE CAPITAL IMPROVEMENT PROJECTS THAT, UH, COINCIDENTALLY INVOLVED PUBLIC UTILITIES THAT WERE CONDUCTING SIMILAR PROJECTS IN THE AREA RATHER THAN TEARING UP STREETS TWICE.

OUR PUBLIC WORKS DEPARTMENT HAVE COORDINATED WITH THESE UTILITIES, TORN UP THE STREETS.

ONCE WE'VE INCLUDED THE REPAIR WORK IN OUR PROJECT, AND THE UTILITIES SIMPLY ARE REIMBURSING US FOR THAT WORK.

THE MAGNOLIA PERFORMING ARTS CENTER GOT OFF TO A NICE STRONG START AT THE END OF FISCAL YEAR 19, AND THEN COVID HAPPENED AND PUT A, UH, HIT THE PAUSE BUTTON ON THE PERF, UH, MAGNOLIA PERFORMING ARTS CENTER.

HOWEVER, THE FACILITY STILL NEEDS CARE AND UPKEEP, UH, FOR THE NEXT FEW MONTHS, UH, FOR THE REMAINDER OF THE FISCAL YEAR.

AND WE'RE ANTICIPATING NEEDING AN ADDITIONAL $405,000 FOR THIS PURPOSE.

THE POLICE DEPARTMENT IS REQUESTING ADDITIONAL FUNDING OF $14,800, UH, FUNDED BY LOSSY GRANTS, UH, RELATED TO A PROJECT RELATED TO INFORMATION SHARING EQUIPMENT.

AND THEN THE BIGGEST COMPONENT OF WHICH IS, UH, THE TWO, UH, APPROPRIATION INCREASE OF APPROXIMATELY $2 MILLION FOR THE INITIAL DEPOSIT IN THE PARS TRUST FUND, JUST TO REFRESH EVERYONE'S MEMORY AND TO INFORM THE PUBLIC BACK IN FEBRUARY, WE'RE DISCUSSING PENSIONS, UH, STRATEGY.

AND ONE OF THE DIRECTIONS OF THE CITY COUNCIL, UH, AUTHORIZED US TO ESTABLISH A PARSE TRUST FUND.

WHAT THIS ALLOWED US TO DO IS TO TAKE THE $8 MILLION OR ANY SUM OF GENERAL FUND MONEY OUT OF THE GENERAL FUND AND MOVE IT INTO A SEPARATE TRUST FUND.

THIS DOES NOT CHANGE WHAT THIS FUNDING HAS BEEN DESIGNATED FOR, WHAT OR WHAT ALLOWS US TO DO IS SEEK BETTER INVESTMENT RETURNS THAN WHAT WE WOULD EXPERIENCE IN THE CITY CASH POOL.

WHILE WE WANT IT IN THE CURRENT ENVIRONMENT, WE WANT TO BE CAUTIOUS AND NOT NECESSARILY JUMP IN WITH THAT FULL $8 MILLION AMOUNT.

WE'RE RECOMMENDING A, AN INITIAL DEPOSIT OF $2 MILLION AT THIS TIME ON THE SUBJECT OF PENSIONS AND CALPERS AND OUR PENSION LIABILITY.

SINCE OUR ADOPTION OF THE FISCAL YEAR OF 21 BUDGET, CALPERS HAS RELEASED THE SIX 30, 2019 VALUATION REPORT.

AND AS HAPPENS EVERY YEAR, THE UNFUNDED LIABILITY HAS, UH, MOVED A LITTLE BIT, NOT ANY SIGNIFICANT CHANGES, UH, BUT IT HAS INCREASED TO $207.1 MILLION.

THAT LEAVES US WITH A FUNDED RATIO OF APPROXIMATELY 64% ON THE BRIGHT SIDE IN MAY, WHEN WE WERE DISCUSSING THE SUBJECT, UH, WE WERE DEALING WITH SOME VERY GRIM NEWS, UH, RELATED TO CALPERS RETURNS.

AT THAT TIME, WE WERE RECEIVING RECOMMENDATIONS FROM THE LEAGUE OF CALIFORNIA CITIES AND FROM CALPERS, UH, TO USE A PROJECTION OF 0% OR NEGATIVE 5% INVESTMENT RETURNS IN OUR MODELING.

HOWEVER, THEY DID FINISH THE FISCAL YEAR RATHER STRONGLY.

AND WE MANAGED TO BRING THE INVESTMENT RETURNS UP

[00:35:01]

IT DOES, HOWEVER, BRING A PRICE TAG WITH IT, AND WE WILL SEE AN IMPACT EVENTUALLY, UH, OF AN INCREASE IN OUR UNFUNDED ACCRUED LIABILITY, AS WELL AS CONTRIBUTIONS GOING FORWARD ON THE SUBJECT OF PENSIONS.

WE'RE LIKELY TO BE DISCUSSING THIS QUITE A BIT IN THE NEXT FEW COUNCIL MEETINGS.

UH, WE'RE BRINGING A DRAFT PENSION FUNDING POLICY BEFORE YOU, UH, ON OCTOBER 27TH FOR DISCUSSION OF STRATEGY AND POLICY.

FOLLOWING THAT WE ANTICIPATE, UH, MOVING FORWARD WITH THE CONSIDERATION DISCUSSION AND APPROVAL OF PENSION OBLIGATION BONDS ON DOVER NOVEMBER 10TH.

THAT IS WHERE IF EVERYTHING GOES AS PLANNED, WE'LL BE THINKING APPROVAL FOR ISSUING POB IS HOWEVER WE'RE LIKELY TO, UH, GET EVERYTHING PREPARED.

AND AS A RESULT OF THE PREVIOUS TWO CONVERSATIONS, UM, DECIDE WHAT IS THE BEST TIMING.

AND WE WILL, AT THAT TIME TO DECIDE WHAT IS THE BEST SITUATION TO ISSUE POB.

SO WITH ALL THAT BEING SAID, THAT CONCLUDES MY REPORT.

AND I'D BE HAPPY TO ANSWER ANY QUESTIONS IF YOU HAVE THEM.

THANKS VERY MUCH.

CLAY COUNCIL, ANY QUESTIONS FOR CLAIRE OR A QUESTION OP? YES.

UH, I, UM, AND NOTICED THAT A LOT OF THE STORES IN PARKWAY AND AROUND THE CITY ARE VACANT, UH, BECAUSE BUSINESSES HAVE GONE OUT OF BUSINESS.

UM, OH, YOU THINK THIS WILL BE A DRAG ON OUR SALES TAX, UM, WHEN THE GOVERNMENT STOPS, UH, BOOSTING UP THE BUSINESSES, UH, AND GIVING THEM EXTRA MONEY, UH, JUST TO CARRY THEM OVER.

WELL, I THINK REGARDLESS OF WHAT, UH, INTERVENTION THE FEDERAL GOVERNMENT HAS ON THE SUBJECT UNDER ANY CIRCUMSTANCES, I SUSPECT WE'LL SEE AN IMPACT TO RETAIL PERFORMANCE ON THE CHART THAT I BROUGHT UP WHILE YOU WERE ASKING YOUR QUESTION, THE GREEN LINE REPRESENTS GENERAL RETAIL AND ITS CONTRIBUTION, AND YOU CAN SEE THE SIGNIFICANT FALL OFF SINCE THE END OF 2019 AS A RESULT OF THIS EVENT.

AND I WOULD CONTINUE, I WOULD EXPECT THAT TO BE, CAN, UH, CONTINUE TO BE SUPPRESSED FOR SOME TIME, BUT DON'T YOU THINK IN THE TRANSPORTATION PICTURE THAT OUR SALES ARE GOING TO SIGNIFICANTLY BECAUSE PEOPLE ARE OUT OF WORK AND THEY WON'T BE GOING BACK TO WORK.

AND, UM, UH, THEY PROBABLY WILL BE LOOKING AT THEIR EXPENSES, WHICH DRIVING IT'S ONE OF THEM THAT'S AS THE AGENTS, UH, SALES TAX ON GAS AND THINGS LIKE THAT.

DON'T YOU THINK THAT'S GOING TO HAVE A CONTINUING IMPACT, MR. MCCONNELL, I'LL ANSWER THAT.

I THINK YOU'RE RIGHT.

WHAT WE'RE GOING TO SEE A CONTINUED IMPACT.

AND THAT'S WHY MR. SHANE'S GRAPH, DIDN'T SHOW THIS IMMEDIATE, WE TURN TO SALES TAX PERFORMANCE.

IT WILL TAKE SEVERAL YEARS TO GET BACK TO THAT.

ONE OF THE THINGS THAT I'M HOPEFUL FOR IS WE HAVE A NEW HYUNDAI DEALERSHIP COMING IN, UM, THE MAZDA DEALERSHIP'S BEING BUILT.

SO I THINK SOME OF THESE, UM, ADDITIONS WILL HELP OFFSET THE, JUST THE OVERALL LACK OF CAR SALES FROM OUR EXISTING DEALERSHIP.

SO THAT MAY BE A BIT OF OUR SAVING GRACE IN THE SHORT TERM.

UM, AND THEN IN THE LONGTERM, HOPEFULLY WE'LL GET BACK TO WHERE WE WERE HAD BEEN PROJECTING BEFORE.

IS THIS GREEN LINE THAT YOU SEE IN FRONT OF YOU? UM, RETURNS BACK TO MORE OF THAT BLUE LINE? YEAH, THAT'S A PROJECTION AND THAT'S A PROJECTION.

YEAH.

OKAY.

THANK YOU.

ANYBODY ELSE? OKAY, THAT'S FINE.

CAN WE GO BACK TO THE SALES TAX TABLE? I THINK IT'S ONE SLIDE BEFORE THAT.

SO I THINK AN EARLIER VERSION OF THIS, PERHAPS IN MAY THE NUMBERS IN THE CHANGE COLUMN, YOU'RE SAYING WE'RE, WE'RE A SPREAD UP $7 MILLION.

AND WITH THE UPDATED INFORMATION, IT'S ACTUALLY NOT AS BAD.

IT'S FOUR AND A HALF MILLION DOLLARS AND I GET THAT RIGHT.

THAT'S CORRECT.

OKAY.

UM, CAN I ALSO REMEMBER CORRECTLY THAT YOU THOUGHT WE WERE GONNA DRAW DOWN $3.3 MILLION FROM RESERVES, BUT IT REALLY MAY ONLY BE 1.1 MILLION THAT THE FISCAL YEAR THAT'S KIND OF TOUCHY BECAUSE OF

[00:40:01]

UM, WE EITHER, IF YOU CHOOSE TO LOOK AT IT AS THAT BEING A RE UH, REVENUE, THEN WE ACTUALLY HAVE AN INCREASE OF FUND BALANCE AND WE DON'T USE RESERVES AT ALL.

IF YOU EXCLUDE THAT FROM YOUR PERSPECTIVE, IT IS A USE OF RESERVES OF APPROXIMATELY 1.1 MILLION, WHICH OF COURSE IS ABOUT 2 MILLION BETTER THAN WE ANTICIPATED 2 MILLION BETTER THAN WE ANTICIPATED.

BUT THAT'S WHAT I WAS LOOKING FOR.

OKAY.

IN THE MIDYEAR REPORT, I'D LIKE TO SEE THE RESERVE FUND BALANCE.

IT'S OUR SAVINGS ACCOUNT, YOU KNOW, IT'S $47 MILLION AND WE'VE SET ASIDE $8 MILLION.

WE DON'T REALLY KNOW WHERE OUR SAVINGS ACCOUNT BALANCE IS AS WE'RE LOOKING AT ALL THESE NUMBERS.

SO IN THE MIDYEAR REPORT, LET'S LOOK AT THE RESERVE ON BALANCE, YOU KNOW, WHAT YOU PROJECTED WHAT WE ACTUALLY USE, BECAUSE EVERYBODY WANTS TO KNOW WHAT DO I HAVE IN SAVINGS DURING THIS TIME.

SO THAT'LL BE GOOD FOR THE VIDEO REPORT ON THIS PARTICULAR CHART, FOUR AND A HALF MILLION DOLLARS DIFFERENCE.

THIS DOES NOT INCLUDE THEIR TAX REVENUE FROM THE NEW CAR DEALERSHIPS, CORRECT? YES.

IT DOES NOT INCLUDE TAX REVENUE FOR ANY NEW BUSINESSES THAT IS BASED ON OUR CURRENT LINEUP, IF YOU WILL.

SO IT COULD FOUR AND HALF MILLION COULD BE BETTER IF THOSE NEW CAR DEALERSHIPS PERFORM WELL.

YES.

OKAY.

OKAY.

UM, THE MAGNOLIA LET'S, LET'S GO TO THE LAST SLIDE OR IT MIGHT BE NEAR THE LAST SLIDE, UH, THAT YOU'RE TALKING ABOUT, THE HOUSEKEEPING ITEMS I GET THERE.

I GET THE 4.2 MILLION.

THAT'S JUST THE CARRY OVER.

NOW.

LET'S TALK ABOUT HERE TWO AND A HALF MILLION, THE 2 MILLION REALLY, ISN'T AN EXPENSE.

IT'S JUST A SHIFTING OF THIS SAVINGS ACCOUNT.

SO THE SAVINGS ACCOUNT, CORRECT? THAT IS CORRECT.

IT'S THE ADMINISTRATIVE STEPS.

WE NEED TO FOLLOW TO EFFECTIVELY MOVE MONEY FROM ONE POCKET AND PUT IT IN THE OTHER.

IT'S LIKE CREATING A NEW CHECKING ACCOUNT.

YOUR TOTAL AVAILABLE CASH IS STILL THE SAME.

YOU'VE JUST CREATED A SECOND ACCOUNT.

SO WE HAVEN'T REALLY SPENT THAT MONEY YET.

THAT'S ABSOLUTELY CORRECT, SIR.

OKAY.

LET'S TALK ABOUT THE MAGNOLIA.

UM, ONE QUESTION FOR THE CITY MANAGER, AND THEN I'LL GET BACK TO YOU CLAY, ON THE SPENDER QUESTION FOR CITY MANAGER, WE PUT $8 MILLION, THEN TOOK THAT THING.

I THINK THE PUBLIC WANTS TO KNOW, HEY, ARE YOU, ARE YOU TAKING CARE OF THAT PLACE WHILE WE'RE SHUT DOWN OR YOU'RE RUNNING THE AC TO MAKE SURE IT WORKS? ARE YOU FLUSHING THE TRAILERS TO MAKE SURE NOTHING DRIVES OUT? WHAT CAN YOU TELL US ABOUT HOW WE'RE PROTECTING THAT $8 MILLION INVESTMENT? THAT'S A REALLY GOOD QUESTION.

YOU KNOW, WE, WE ARE, UM, HAVE A REGULAR SCHEDULE TO DO THAT, UM, TO MAKE SURE THAT THE BUILDING IS OPERATIONAL.

IN FACT, UM, WE JUST, THE GENTLEMEN THAT WAS THE GENERAL MANAGER OF THE FACILITY HIS LAST DAY WITH LIVE NATION IS I THINK TODAY, AND WE'VE MET THE NEW HEART TIME GENERAL MANAGER, WHO WAS ALSO THE GENERAL MANAGER OF THE NORTH PARK OBSERVATORY.

SO, UM, SINCE THE NORTH PARK OBSERVATORY IS HAVING SOME CONSTRUCTION RIGHT NOW, SHE'S ACTUALLY GOING TO SET UP HER OFFICE AT THE MAGNOLIA.

SO SHE WILL BE THERE ON A REGULAR BASIS THAT BUILDING WILL CONTINUE TO BE USED.

SO WE ARE EXERCISING THE MECHANICAL PORTIONS OF THE BUILDING AND MAKING SURE THAT IT'S FUNCTIONAL.

OKAY.

CAUSE WE DON'T WANT NON USAGE TO, TO RESULT IN DEFERRED MAINTENANCE COSTS.

THAT'S CORRECT.

OKAY.

NOW THE FOUR 45, $245,000 THAT YOU'RE SAYING, HEY, THIS IS GOING TO BE A SUBSIDY.

IS THAT THE RIGHT WORD? UM, UH, YOU KNOW, OPERATING LAW, WE THOUGHT IT WAS GOING TO BE ACTUALLY HIGHER THAN THAT FOR YEAR ONE.

WHEN WE STARTED THIS WHOLE NIGHT GOING TO LEAVE THE DISCUSSION, DIDN'T WAIT.

WELL, SO WHAT WE ACTUALLY ASSUMED FOR THE FIRST YEAR THAT OUR OPERATING COSTS, SO OUR NET OPERATING COSTS, OR YOU COULD SAY LOSS WOULD BE ABOUT A MILLION DOLLARS.

UM, AND THEN AS WE STARTED PERFORMING, HAVING SHOWS AND PERFORMANCES WERE COMING ABOUT WITHOUT, THAT WOULD ACTUALLY DROP TO ABOUT $600,000, WHICH IS PRETTY GOOD FOR THE FIRST YEAR.

UM, WE'RE BACK UP TO ABOUT A MILLION DOLLARS LAST YEAR.

THAT'S ABOUT HOW MUCH IT HAVE COST US TO OPERATE THE FACILITY.

UM, THIS, AS WE WERE PREPARING THE BUDGET IN THE SPRING, WE HAD SOME ASSUMPTIONS THAT WE WOULD BE STARTING SHOWS.

WE KNEW HE WOULDN'T DO ANY SUMMER SHOWS, BUT WE ASSUMED THAT WE WOULD START DOING SHOWS IN THE FALL.

UM, THAT'S CLEARLY NOT GOING TO HAPPEN, PROBABLY WON'T BE HAPPENING INTO THE WINTER.

UH, WE DO HAVE SOME SHOWS CURRENTLY SLATED FOR EARLY SPRING IN MARCH, WHETHER THAT HAPPENS OR NOT.

WE DON'T KNOW, BUT OUT OF A, AN ABUNDANCE

[00:45:01]

SO LET'S GO BACK TO THE 445.

IS THAT, UM, DID YOU THINK WE ARE GOING TO, DO YOU THINK THAT NUMBER IS GOING TO BE 600,000, BUT IT'S ONLY FOUR 45? IS THAT WHAT YOU'RE SAYING? THOUGHT IT WAS GOING TO BE 508,000.

SO IF YOU, IF YOU TAKE THE FIVE OH EIGHT PLUS THE FOUR 45, WE'RE, WE'RE GETTING CLOSE TO A MILLION DOLLARS AGAIN.

SO WE'RE ABOUT $963,000.

OKAY.

SO EVEN WITH COVID, UM, WE HAVEN'T BLOWN PAST OUR, OR EXCEEDED OUR SUBSIDIES FOR THE FIRST YEAR, CORRECT? WE'RE ABOUT ON TARGET EVEN WITH COVID THAT'S, THAT'S, THAT'S KIND OF A WIN BECAUSE WE HAD PLANNED FOR A MILLION DOLLARS BEFORE COVID AND THE FACT THAT WE'RE EVEN HAVING COVID AND SHUT DOWN THAT WERE SLIGHTLY UNDER A MILLION DOLLARS IN A WAY AS A WIN.

WOULD YOU AGREE? YOU COULD SAY THAT YOU SHOULD KNOW THAT STAFF, UM, WE STRESS ABOUT IT ALL THE TIME.

WE WOULD LIKE TO HAVE SHOWS THERE AND TO DRAW REVENUE, BUT YOU'RE EXACTLY RIGHT.

WE, WE WENT INTO THIS, WHEN I SAY WE, THE COMMUNITY, THE CITY COUNCIL STAFF WENT INTO THIS, KNOWING THAT IT WOULD NOT TURN A PROFIT FOR AT LEAST THREE TO FOUR YEARS.

AND SO, UM, AND WE KNEW THERE WOULD BE A HEAVY SUBSIDY, ESPECIALLY IN YEAR ONE.

THE FACT THAT WE'RE ABOUT WHAT WE HAD PROJECTED WITHOUT COVID UM, YOU THROW COVERT IN THERE.

IT'S PRETTY MIRACULOUS.

YEAH.

OKAY.

ALRIGHT.

THAT'S ALL I HAVE.

THANK YOU.

GRAHAM'S HAS BUILT, UM, NOW THAT A CO THAT HAS HAPPENED, DO WE ADD ANOTHER YEAR ONTO THAT THREE TO FOUR YEAR, UH, LOSS, PROJECTION.

UM, BUT WE HAVEN'T TALKED, WE HAVEN'T TALKED TO OH, IN TERMS OF HOW WE BUDGET FOR IT.

YEAH.

I DON'T KNOW.

I THINK, UM, I THINK ONCE THE ENTERTAINMENT INDUSTRY OPENS UP AGAIN, I THINK IT'S GOING TO OPEN UP PRETTY ROBUSTLY.