City budget

Q1 - Q3 Budget Actuals & Summer Season KPIs (45 mins)

the current 2027 approved budget still delivers approximately $1.4 million in enhanced investments to our wildfire resilience efforts

We did hear you clearly through the budget process that you want additional information on how work could be accelerated

whether through grants, future alternative financing mechanisms, or budget realignments as a situation calls for

there'll be exploration with city leadership and council members after the election and into the new year about the potential for a two-year budget process

$10.9 million in funding within the 2027 recommended budget

key considerations of the 2027 recommended budget focused on balancing our flattening of the city's major revenue sources

here to present the second reading of the 2027 recommended budget

Consideration of the following pertaining to the 2027 budget of the City of Boulder Central Area General Improvement District

it's budget season and I think budget season is every four all the four seasons and yep

wanting to talk through with staff how we could get more transparency and visibility earlier on into the budget

especially manufacturing the the um signage in-house and really making it as um budget-friendly as possible

these are the things that are already built within our existing budget and we have work plan items associated with these

you could maybe tell us what's within the city budget. How many dollar signs,

Council did pass the budget as proposed on first reading with no amendments.

It's not sustainable for the water, for for the police, for all the services, for our budget

we've got a budget problem here and it's largely associated with the planning board because this endless building is just

Consideration of the following items relating to the 2027 Budget:

Consideration of a motion to accept the September 10, 2026, Study Session Summary regarding the 2027 Recommended Budget for City of Boulder

that the city council approve the 2027 recommended budget for the arts culture and heritage tax fund fund 2620 as presented

the city asked all departments to cut or to recommend 4% cuts to their budgets um because of sale tax being almost flat year-over-year

council will begin considering their full proposed city man city manager budget this Thursday

As a part of that initial guidance this year, departments were asked to submit at least 4% reductions across the board across all funds.

And I know that this large of a budget shortfall is new territory for both PREB and staff.

Consideration of City Manager’s Office Recommended Budget for 2027

that position was um eliminated in this budget year.

We currently do have a small sister city budget. It has been reduced of course over the years

I'm concerned about the budget. This redesign is not a time to do this.

city council will have their first reading on the 2027 that should say uh 27 recommended budget

The 2027 rep recommended budget is 552.6 million across all funds. The capital budget is 135.4 million.

this graph shows our comparison of the city's adopted budgets from 2019 to 2026 and the recommended budget for 2027

The bud budget balanced operating expenses against flattening revenues with ongoing reductions, realignments across city funds

2027 Recommended Budget Study Session Staff Time: 20 Min Council Time: 160 Min Total Time: 180 Min

2027 Operating and 2027-2032 Capital Improvement Program Budget (75 min)

I did want to just lift up the the requests that the council has made around uh revisiting the budget process

Why is parks and wrecks forced to reckon with a revenue-based budget of scarcity when other city services seem to operate

We also oppose giving Panka Place to Frasier Meadow for free in the middle of a budget crisis.

Please come to us with where in the budget those tradeoff conversations could occur

some are general funded um projects and programs and some of course are are funded by open space funds

I would love to, you know, empower them whatever they need budget-wise or FTE wise

2027 Budget Fee Discussion – Review Proposed Fee Schedule (45 mins), Page 215

would be generated at the hotel including accommodations tax those would be either general fund

get into a level of financial analysis that we simply did not have before

We need more transparency in our budget. Our budget is not easy to read.

it does pull 175 million that would otherwise go to the state's general fund for use for other programs.

staff shared forward our financial landscape which is shared earlier is projecting a 6.5 million gap in our 2027 budget

In the 2026 budget to close a projected 7.5 million uh dollar shortfall, we implemented reductions

we have shared forward our financial constraints the city has faced and the importance of the long-term financial strategy

So if operating at a deficit is kind of an industrywide reality, we've already been operating at a deficit

likely that if we chose this route, we would be closer to the $26 million deficit rather than the $7 million deficit

When $1.7 million is on the table and budget season's coming up in September

OSMP Work Plan & 2027 Budget Considerations

the findings we presented on will be used as one component in three areas. The 2027 recommended budget.

You're you're you're at a deficit when it comes to what you you really need to accomplish

We test another opportunity for new revenue and this is general fund debt

Isn't generating revenue to the general fund intrinsically cost recovery for the work that we're doing?

Look at the funding, put this in your 2027 budget and your 2027 roads agreement

So in three years we can expect MMO uh transfers to come back and hopefully the budget is a little bit brighter at that point.

I would really like more info on the dollar amounts

there's an opportunity that could be a direct enhancement into the general fund

Sales tax was essentially stagnant. And counting for inflation, it eroded. It eroded by more than

As standard practice, staff continue to monitor our major revenue sources to understand any changes forecasted against the original budget

recommendations for adjustments to base will be limited to only those necessary given our financial constraints.

Tonight, staff will provide brief presentation on the first adjustment to base to the current fiscal year.

Second reading and consideration of a motion to adopt Ordinance 8750, Adjustment to Base Budget 1 appropriating money to defray expenses and liabilities of the City of Boulder

We approved the budget, and then you came back later with the fee policy.

we develop our budget within the department, relying on guidance from, the finance department, as well as the city manager's office

and creates a recommended budget that goes to City Council. This is what you will have input on

The budget direction emphasizes ongoing reductions, realignments of dollars towards highest use

For the 2027 budget, a $6.5 million shortfall has been identified in the general fund.

The 2026 budget was developed during a time of increased uncertainty and as the city revised down its forecast

And I think we've got, you know, a huge budget shortfall, and the last thing we need is something to make it worse.

we're going to be looking to you all for input on that budget and feedback

you will have reviewed the city manager's recommended budget that is typically shared with the entire community

You also are required to make a recommendation to city council regarding the city manager's recommended budget

it's the taxpayer general fund that's going to go here.

prepare for next year's budget, we need better certainty about what resources we have at our disposal.

it's going to lean more heavily on our general fund.

We've got a deficit in Boulder now of 400… 400 million? I don't know what it is exactly.

think hard about are there budget tradeoffs that we need to know about right now that we're making

some of that money out of the general fund or from CCRS I should say funnels into other projects

a reserve policy of 16.7% across our operating funds, 20% for the general fund

The 2027 budget will also come to the board, that's the first, and that'll be in

so we have a budget of $450,000, for the year

it is true that the kids are talking about fun and the adults are talking about budget

then later this year, the PRAB, along with other advisory boards and commissions, will see the City Manager's recommended 2027 budget

Our current operating budgets are not sufficient to meet the current level of service.

We're also hearing… About budget constraints. We know this is an additional project, not only financially for consultants

We don't have the money for this. We don't have the money for that. We have, an Economic crisis with our city budget.

I would like to be able to get all available information on budget and what money is spent on South Boulder courts.

is there any budget to do outreach at that level? I'm not sure, actually, but I will find out.

They cannot be transferred to the general fund or anything like that, so there is

There will be opportunities to provide input on city budget decision making, potential tax ballot measures, and more.

the general fund currently just does not have any authorization or capacity to issue any more debt.

that is an additional cost that is not planned in our existing general fund.

This option would ask voters to authorize the general fund to issue debt, which it currently does not have the ability to do so.

I get that, you know, this money is just going into the general fund, and I want to make sure

My understanding is it all goes into the general fund.

So I think that the budget is going to kind of have to be looking backwards with the formally adopted plan

I think where you will see the priorities, budgetarily speaking, is within the city's budget.

there is also a way to kind of link funding priorities, like, here's the budgets.

There are still a lot of fiscal impact questions and more financial modeling and analysis to work through, including impacts to the general fund

I can manage my own budget a lot better than that, and I don't see much public input either.

What percent of the city's affordable housing budget is allocated to rentals versus the permanently affordable ownership?

I don't think this is wise policy, and I don't think it's a good use of taxpayer dollars.

landmarking this location without the support of the property owner will add a burden to city staff, creating more work hours in a time when the City of Boulder is facing budget constraints.

The PRAB also must make a recommendation concerning the operating capital budgets.

I also want to clarify the perception that the budget has grown for this project.

you've in fact invested uh in the 2025 budget thanks to council's approval $2 million

While there are claims of declining revenue to justify caution in spending, the budget for East Rack increased from 13 to 53 million

some general operating things, budget things for next year

is this something where we would almost certainly need to spend more and this would become a spending priority as well

given that parks and wreck has difficulty given budget constraints in maintaining its current assets

the city in a budget crisis is just throwing money down the

in the 2025 budget, if you'll recall, council

Is it in a plan? Is it increased budget for security?

What's the city's lobbying budget? Because I'm new, I am not. privy to that at this moment, but I can find out.

We already have an economic crisis, right, with our budget.

without additional general fund subsidies, which we've not seen an increase for recreation in over 20 years

This was a two-year plan to address many unmet needs across the city.

It sounds like they're being discretionary about, you know, what we buy because our budget is in big trouble right now.

still 13 cents of every property tax dollar that our residents pay is the city everybody

And that is in a time of flat to falling budgets

I'm also not convinced that we have the budget to develop 189 acres of active recreation facilities

I think it has both policy and budgetary implications that would be shorter term

We would want to get a consultant, so there's a budget aspect to it

There's a 9-10 month period where we start preparing a budget, right?

because of the… the budget crisis that we were in

these rates were approved directly by City Council through the annual budget process.

so just breaking down the supplemental appropriation here

amended budget for 2025. So that is correct. It's not a New Year's typo.

the citywide strategic plan, the budget, the CIP, individual what we've historically talked to as department plans

These are primarily related to balancing the general fund and shoring up the gap.

staff anticipate shoring up the budget shortfall for 2025 um that stemmed from the flattening revenues and unplanned expenses.

Adjustments to base are necessary in standard practice to support the appropriation of unplanned expenses.

that was part of the budget process for Council, so if you wanted to look up the fee ordinance

This was, city council budget process that happens

Do we have money to do that with?

There is some. It is pretty limited, but we do have some, and we can also get creative, with the budget that we have

that is less than 0.05% of our most recent city budget

We will continue to advocate the City Council revisit issues the issue of paying administrative costs out of a general fund

since the city had already purchased it with general funds, now the city was the owner and they could define the this the sale price however they wanted

We took $5 million of general fund money and we said

the amount of land being allocated that way is appropriate based on the amount of funding that was provided.

the overall budget is around $650,000, and part of the advantage of Nature Play is it costs a lot less

What is the budget for this project? Overall budget is, with Stormwater's, investment as well, is around $7 million.

do we need to pull back on budget, or do you feel like

rates are an important consideration when it comes to our budget

that is linked to our long-term financial strategy and the work that our finance department is doing on the budget.

The other one is part of the fee structure of the city, that was passed with the budget.

Maybe I misunderstood all the City Council debate about budget, but is there anything that's, like, we would want to keep

under a hiring freeze right now, for budget constraints, and so, we'll let you all know

parking pricing is a lever to help address some of the budget shortfalls

This was approved by City Council as part of the budget process.

given the current climate and budget concerns, and there not being a feeling of surplus

These were all in the, budget packet that was approved by Council on October 23rd

We don't go over what Council appropriated, either during adoption or the adjustment to bases.

Because our budget is in massive deficit right now. Our open space is 300 and some million dollars in deficit.

But we are in a very fiscally constrained budget and have tried to make the most out of the

Last Thursday, City Council formally approved the 2026 citywide budget.

that we have 521 million dollar budget that we can't meet, that we've got all these deficits

the 2026 recommended budget declines and slows as you can see in this graph

our 2026 uh recommended budget, this graph presents an overview of the city's adopted budgets

staff identified a budget shortfall of 7.5 million in the general fund

every year we go through an annual budget process, a capital projects, planning, zoning standards, work planning

I mean, we have a budget shortfall. Is the $18 million a portion already?

especially if you imagine that we must find this sum in the 2026 budget

in preparation for next year's budget because that is the way uh it happens

the citywide budget, which is this top line on the graph, is an 11.6% decrease, primarily driven by slowing operating growth

So focusing on an overview of the 2026 recommended budget, this graph compares the city's adopted budgets from 2019 through the 2026 recommended budget.

staff identified a budget shortfall of 7.5 million in the general fund if left un unbalanced and unressed

we do need to, get the okay in the budget. You know, the budget's been pretty constrained.

that is part of the city manager's recommended budget

There are some transfers coming in from previous years.

the City Manager's 2026 recommended budget, as it, the board today, and it's still presented to City Council

would anyone like to make a motion to recommend the 2026 City Manager's recommended budget

So, next steps with the budget itself, there was planning board last week

tonight, you are going to make a recommendation on the operating budget, and then per the charter

Can we get a breakdown of what those amounts represent? Because they actually dwarf what's in the budget.

or do we feel like that's an opportunity for a budget increase in the next budget cycle?

How did we fund that increase? Was that just through the existing budget, or did we pull money from a different budget?

we can finesse it where we endorse And approve the budget that is presented to us

we had a follow-up resolution saying that we were not specifically endorsing the utilization of

I move that we recommend City Council adopt the City Manager's 2026 recommended budget, appropriating money to different expenses

And you think we got budget troubles now and we're just going to charge more people

I'd like to ask that 1% of the climate initiatives budget be used to build us a new system.

the city manager's recommended budget, includes a 50-cent increase to the base on-street rate

Planning and Development Services General Fund budget, for 2026 is going up.

Adopt the City Manager's 2026 recommended budget to temporarily reduce the Boulder Junction General Improvement District parking from 10 mills to 5 mills.

is a balanced budget, and so we have closed a $7.5 million gap within the general fund

The 2026 recommended budget that was presented to City Council last Thursday closed this budget gap

The 2026 recommended budget and the associated capital budget and 6-year CIP

A lot of budgets and how those are applied in the billing process

the recommended budget brought forward to city council this evening

For the citywide budget, which is the top line here, there's a 11.6% year-over-year decrease.

As mentioned, uh the 2026 budget shortfall, we identified a 7.5 million shortfall in the general fund if left unressed.

those directly influence our operating budget, capital improvements program, and zoning and development standards

Each year, fees, with the city go through a process to be updated. Many of them change annually, and so the TMF is part of that

on Thursday, September 11th, we have the budget study session. So this is a study session with Council, led by our finance team

the city's communication department now has 37 people

as part of the City Manager's recommended budget for all funds, including Parks and Recreation and KJID, in order to close the budget gap.

Cmo had recommended an ongoing reduction in the general fund transfer, to Fugid as part of this budget.

today I'm going to share with you all the 2026 CMO City Manager's Office recommended budget for community vitality

it's through the budget process. They update all of the fees across the city, including impact fees every year

Take that money and bring it here! We've got budget, you know, I read about

that's that is not a feasible for us to contemplate um expending in in this manner

There will be comparisons within what is being proposed for 26 And what was actual in 25?

the summary of enhancements will be on there, so we'll be highlighting any enhancements that are going forward as the City Manager's recommended budget.

The city allocates $73,000 to transitional housing, bridge house, and then $45,000 to diversion programs at all roads.

Sort of broke it up into two broad categories. Health and Safety Response Budget, and Accelerating exits from homelessness Budget.

when we do budget, we'll keep this in mind, but we have a limited pot of money, and we have to figure out how to spend it

but also the capital improvement program and the budget.

It is all budget all the time across the city, and so we are moving to that place where you all gave input on a budget in June.

that we could come start the budget process with you all a little bit later, because per the charter, your role is to comment on the city manager's recommended budget

On this Friday, the City Manager will be releasing a recommended budget to the community, staff, as well as all of the boards.

In 2022, the city of Boulder aligned our budget approach towards outcomesbased budgeting with the SUR framework

since I won't be asking for money at the September budget hearing like I always do

I'm asking you for how much money did we spend on these programs over the last seven years

this document provides a roadmap for a fully optimized system and it is independent of current budgets andor economic conditions.

There's interest in knowing if we have a specific budget for community engagement, how to access it

We also had a pretty in-depth discussion about the panel budget

General fund revenue losses associated with reduced permit sales and citation revenue

the revenues from permits and citations cover the cost of the administration of the program

would reduce general fund NPP permit and enforcement revenues due to the smaller zone sizes

we didn't tend to build in uh repair and replacement costs into the budget over the decades

As part of the annual budget development process, we look to incorporate and include uh additional projects

city Budget Staff have been presenting details of departmental budgets to several of the commissions and boards across the city

every department had a few pages to talk about their different programs and their budgets

We know we are looking at some proposed reductions in this fund as well

We are in uncertainty as we go into executive budget meetings this week, because the city manager

August 29th is when the city manager's recommended budget will be released to the community.

I can attest that we have had very difficult budget conversations

our uh budget used to be much higher

this kind of shows our operating budget for 2025, just to give you a snapshot of what an average year looks like for us

the city also receives funding through federal, state and other local sources.

our operating budget will decrease by around 9%

So where are we in the budget process?

as part of our proposal, when we ask for these dollars it's a general ask for district capital enhancements

so there's the possibility to roll some of that unspent but already sort of like factored into the budget money into a different line item.

and obviously matching up with budget, you know, to those opportunities.

And so part of that depends on how much how much budget there is to support

It's not a reduction to the general fund. It's just a move from one department to another.

Does that go to the Dfc's budget, or whose budget gets the payments?

Push back to departments as a recommended budget that we put forward to City Council to get that presentation late August

We have 10 million dollars deficit. We can't hire anybody, you know.

And as we consider the proposed 2026 budget for our department.

So a little bit of our overview our operating budgets right around 12.8, our capitals around 12.1.

we are in real time seeing a possible product of those general fund dollars to help shore up this year's budget

We're in conversations right now because of the city's budget. circumstances.

we'll also get really good information out of the budget this fall

we have kind of compiled a total budget. For for these locations.

We had discussed that we were putting in for a adjustment to base request to be.

The 5% is from the general fund. And really, that general fund portion is we call it Gov tab, the government capital fund.

And we're deficit like 10 million dollars. Now, there's a hiring freeze, and we're supposed to take care of this population

there are probably 3 or 4 projects where we will push them out of here or decrease the funding just because there isn't the staff capacity.

5% reduction in 2025 approved budgets. One of the community impact which I think is incredibly important.

cost we do have some budget for this.

We don't have any money for the Open Space deficit. 300 million.

We don't have money, for we're 10 million dollars in debt now in our budget.

I sent you all a email that basically repeated what press release was sent about the city's budget

does the city like forecast how much in the rates they're anticipating not collecting from those equity programs? Is that factored into like the budgets and things?

each year the city goes through the budget process and it's really we're in year 2025 now

But what happens when our budgets are not keeping up with inflation is what we're seeing in the orange line

So this graph is really showing on the expense side of things, our purchasing power.

The summary for the adjustment to base 1 is a total of 11.6 million that's included in tonight's packet

the state of the economy given volatility and unknown impacts from federal policies such as tariffs and grant support

reading and consideration of a motion to adopt ordinance 8699 approving annual carryover and supplemental appropriations to the 2025 budget.

the City of Boulder needs to pay for the Arts Office of Arts and Culture, which I value greatly out of the general fund which we helped pass for them

boulder's general fund should support the city of Boulder art staff, and overhead the dedicated fund should support the activities spelled out in the ballot measure

the city manager's vision of of implementing council policy through the budget

Are there other things that you would like to make sure that we are considering Um, in, uh, building up the budget.

in terms of what we're suggesting for the 2026 budget, as well as the 2026 through 2031 CIP.

now we'll shift over to, uh, 2026 budget planning.

our estimates are that we'll be able to generate enough revenue from paid parking to cover the cost of the Eco passes.

Generally the city as a whole has 50 to 60% of their budget going towards personnel and supplies of materials

So Budget Development Steps did share this with you in our April meeting. But this is basically the steps that we take when we are putting together a budget proposal.

when you approve the budget that is essentially asking us to take it through the approval process with the city

So this is our wastewater fund expenses versus revenues for 2024 actuals, through 2025, adopted in 2025, revised

So this slide is looking at the 2024 actuals and the 2025 adopted in 2025 revised budgets.

So one thing we have the power to do is collectively speak to council on budget.

What happens to the money when we're under budget or over budget.

we had a recommended budget of a certain portion of the agent that we presented to you all.

We'll be reviewing the entire city's budget, which will include the general improvement districts budget

even though we have been increasing our our budgets in the capital maintenance program

we are keeping our budget at the same amount and not increasing

when we exclude planned debt service as well as uh internal service charges

Finally, our budget development calendar. Uh we are here May 8th with this financial forecast in 2026 budget update.

So this graph shows our adopted budget growth uh focusing on the operating budget

for all those things we pay back to the general fund.

Our financial performance from 2024 ended in a green area.

So we'll discuss those final submissions to City manager's office and the Executive Budget team.

With this, our major forecasting considerations, we do have limited growth.

figuring out the right way to manage the budget is is the best way to determine the path forward with Parks

we do build those into our base cost budget because we are very fiscally constrained.

Council approved $1.4 4 million in the 2025 budget to implement Hill Streetscape in uh enhancements

that has had to be subsidized by the general fund over time

go through a process called adjustment to base, where requests are made to fulfill obligations and change budgets.

If you ever watch the city's budget process in the in the middle of the year

If we we look at the past 3 years utilities, budget floats between 20 to 25% of the total city budget

What was the rough breakdown again in terms of your city's sources of revenues.

I'll always remind council that we have a constrained budget.

But there's too many deficits and too many developers and too little money directed in the right places.

The point 2 5 and the Recreation activity fund are really our predominant operating funds, and then everything else

Whatever we're awarded from the general fund is considered as revenue, and we are expected to spend the same amount.

We don't do a true budget balanced budget between revenue and expenses on a yearly basis

I'm not the budget expert here and and would have to lean on our finance team to follow up on this

The other key piece to this is really focusing on our reserve levels that we have across all of our 41 budgeted funds.

We're going to be revising that list as part of the 2026 budget development process, and requesting that from all departments

we put the budget online and we had no interest in the budget if you recall

I'd be fine with moving the cip and budget agenda item to a future meeting

can I just ask just a question about the timing on cip and budget

You will see that our General Fund subsidy has remained relatively flat throughout all of these years.

the gray line at the bottom is the amount that we've received from the general fund in our annual subsidy

What I really want to highlight is for operating budget. We spent 96% of our overall budget.

We can use maintenance funds either from the general fund or from our 2 way funds

but again breaking down the proposals, stipends and the online call, plus a contingency

our total combined budget for both of these fire stations is $250,000 for public art

there's also an emergency ordinance appropriating $100 million um, for the debt in for the budget for 2025 as well.

the approval of the project budget in the 2015 or I'm sorry, 2025 capital improvement program and 2020 annual budget.

I will add the certification of no levies typically happens during the second reading of the Budget adoption, which is in October.

and 2026 mill levies go to the county and we do have wiggle room to work with

so we have asked our housing and human services to be thinking about what their ask will be because we may have to supplement

we've warned departments that their asks are going to be um scrutinized a lot

the flow of funds between the general fund and is a potential challenge looking to the future

But we did just fine for our budget in 2025.

Some are owned by the city, and and their revenue goes to the general fund, others are within the purview of Kj.

these monies, you know that people are always saying we need potholes. We need, you know, transportation. We're in deficit all the time.

without general fund money provided by the city to shore up its finances will run deficit

since we were able to get the general fund dollars and use that argument to get those monies allocated

So the revenues that the parking brings does that go into the general fund?

that is the time that we are sitting down and reviewing budgets and making decisions because we need to give that to you all in August

we have yet to kick off uh our budget process we're about to do that actually pretty soon

some of the Insight that you will give us both in April and in May uh will actually help them as they're creating their budget

bring that in through private donations. Rather than trying to argue for additional

But you know Bbsd has been limited budget wise for so long when it comes to maintenance

we start I would say at the outset with a deficit built in because this area of work has never been fully funded

before we finish the development of the city manager recommended budget which would come to you in September

how are some of the deliverables of this report aligned with our budget process

that goes into general funds typically for police fire on the general fund purposes.

Is achieved through the adoption of zoning codes, through the implementation of the annual budget

I don't have the power to say where the maintenance funds are coming from

The annual budget process is it? Does it come like who who says to city council. We need more budget for parks and Rec.

I like to understand the concept of the budgets and why the money is transferred to me

So Boulder Budget City's budget, you know, there's been some news around. You know, budget shortfalls or anticipated budget shortfalls

especially since we have a tight budget we have restricted funds we need to know what's restricted

maybe we can also hide budget items that have neither budget nor unplanned expenses.

that require more services that we have deficits, for in all of the departments

Do you have any concerns in the budget? Is there anything you can really flag.

It artificially inflates the budget. So we want to make sure we always pull in all of those things.

this is not the kind of plan that has like line item, budget

I think we talked about funding, and you mentioned like the the goal of the plan is to have

The line line item, budget ask. I thought that was like

about um our long-term budgeting and financial strategy is as all departments are aligning

the relationship between local businesses sales tax and our city budget

what our budgets are for the catering. So those would be my my 2 questions.

we're not in a budget discussion today n i I believe you've described our budget situation as constrained I believe so

council to include the connectors in its budget since the connectors are considered a key program both within the government

I'm generally supportive of these um uh adjustment to base supplemental Appropriations but I would like to know

just on the supplemental Appropriations to the 2024 budget and lifting up that um we we've dedicated Another $500,000

we have enough constraints on our budget with the city of Boulder we can't even afford hotel rooms for the homeless

We have talked several times about the General Fund subsidy.

This year we spent several months with you, developing the 2025 budget which the Preb. And ultimately City Council approved.

I thought, that was a pretty clear takeaway for me that we need to get more budget from city Council than the general fund.

working through the the budget with us every year

I would like to ask if it would be possible to include in the budget, or to ask for the funds

we enter into this new phase where the data on how our programs are doing is a part of the decision making in in the next budget cycle.

it turns out we have to follow the the budgeting process.

But you know budgets are standing for our priorities.

the day services will be open for the full 12 months next year versus a partial year so there's additional funding there uh from the general fund

So I did follow up with Central Budget post the approval of the second reading

change in some of the the numbers that Council did approve as well.

the letter was received. There was no discussion on council.

as we think about all the needs that are emerging in these budget conversations

The intent is for it to be final to inform 26 budget development.

Shall review. City managers proposed annual budget, as it relates to parks and Rec. Matters and make its recommendation based upon said budget

in the really good News Department Council unanimously approved the budget last week.

motion to adopt ordinance 8660 adopting a budget for the city of Boulder Colorado for the fiscal year commencing

one that was developed in a constrained environment we shared earlier on in our uh Financial forecast

kind of look at the budget for 2025 and and make some recommendations there

I don't know if we would have budget, for like an entire

city council is probably in a few days going to approve the, or at least have up for second vote the 2,025 budget

we can be completely justified in asking for the extra budget that that would entail

if the numbers, if the budget doesn't allow that, then we'll have to work within, what's there

always we'll we'll have to live within the the confines of our our budgets

one would assume that would require some increase in the budget. But it looks like you're saying, this will be budget neutral.

we've all seen the city's constrained budget and heard about the county funding cuts that are coming

like the expenses of the city on the budget you know it's affecting us all

We have a pretty healthy training budget for the board.

the goal is for this evening to have a final budget and appropriation number for adoption

we're now at the end of our uh 2025 budget development process

we're excited to bring forward our first reading of the 2025 recommended budget to city council this evening

people understand our city budget better where the money comes from where the money goes

the 2025 budget will include the new cultural plan and set a baseline for the Oac's budget out into the future.

Nevertheless, the draft 2025 budget zeros out general fund spending for the office of Arts and Culture.

We ask, maybe not be limited to city budget proposals that 0 out general fund support

obviously that plays into the budget city needs its budget

That's from the city budget. It's from the affordable housing fund.

and then on the flip side for our arts and culture budget items we had suggested.

Just wanted to point out a few shifts that happened through that process.

So in our recommended budget for 2025, we have allocated additional funding for this program.

We do have a recommended 44.5 million. That's 35 million focused on operating budget

I just wanted to give you a quick update as far as how we're doing financially, year to date through August

this same model. Is in the 25, recommended Budget.

we need for developing the 2026 city managers recommended budget

the city managers recommended budget includes a $1.4 million proposal to continue streetscape improvements on and around the hill in 2025

We're doing some streetscape renovations and revitalizations. So some juggling of the general fund

in the city manager's 2025 recommended Budget, and that's the University Hill streetscapes investments project

It is in our recommended budget for 2025. We've allocated additional funding for commutified in 2025.

the city manager did release the 2025 um budget city council is going to be considering

That's starting to get into a budget line item now it's like you know renting

this pie chart on the right is one way uh of looking at the 2025 recommended budget

talk about our overview for both the capital budget as well as the operating budget for the 2025 recommended budget

we're excited to bring forward the 2025 recommended Bud budget to you all this evening

funds that have already been allocated for other uses in our budget

it's really probably not the linear feat that's going to make or break a maintenance budget

the issue of concern about decreasing matching funds for tip grants and cip projects

and something like the budget is certainly one that I would want to have more opportunity to to peruse

I believe we we uh published the budget last Friday

So this is what's going to be going to the city manager? As a city manager's recommended budget

spending the general fund dollars first, st and no more than $250,000 towards streetscape improvements

are we tying our hands by taking that out of the huge funds anymore

It is supported by our general fund. We have a total of 6.2 million included in the 2,025 operating budget

City Council will have their 1st reading on the 2025 recommended budget

included in the 2,025 recommended budget or recommended capital budget is a total of

So these are the very specific things that are within the recommended budget.

Every year we publish the budget book so you can see everything that the budgets going towards now

they have basically produced a package that's going to go to city council. And as the city manager's recommended budget

There are no changes from the budget that you all look at other than there's some changes in funding sources

If there's specific budget information we want to hear. If there is usage information we want to hear.

and adjust our own personnel which would have significant fiscal impacts

a lot of discussion about alignment of the budget towards the Sara framework, how the budget is really supporting

consider resources, and asks to the Council for budget and that type of thing

we will be bringing that conversation the newer tax uh back to council as part of the budget process

generally we will talk about the budget at this time, but because of the new tax fund,

I'm not getting that granular in the budget. So I wanna I I just wanna see

Question about Budget. and I think it will help anyone who's listening.

we can consider a general fund or ccrs but of course that's trade-off discussions I mean there's other needs and uses for those dollars

rather than thinking about taking money from the general fund or something since these are primarily recreational uses

these new lease terms would remove operating and maintenance cost from the airport's annual budget

also influences budgeting and resourcing across the organization including within the city's annual capital improvement program and the operating budget

We have a motion to recommend the 2,025 proposed parks and Rec. Department budget of 43.9 million dollars.

By August 30th the city manager's recommended budget, will be released to the public, and then there are 3 different touches

right hand side shows the proposed 2,025 budget at 43 9 million. You will see this is a decrease from 2,024

So now, this is Kages specific portion of the budget for 2025

The big enhancements that we're asking for this year is continuation of the investment program.

We have some other revenues, which is my favorite, just other so we have some miscellaneous maintenance agreements

We did not decrease the general fund transferring. We did, however, engage it because we are increasing the amount

any unspent money from 2023 that was earmarked and encumbered automatically rolls over into 2024, bolstering the 2024 budget

So that that calculation is done every 2 years, and this year we saw a pretty big increase.

our expectation for the fiscal analysis is that we will be able to discern a a difference in general fund impact

fiscal consequences to City general fund and Enterprise funds

We're kind of in the budget process now, figuring stuff out for next year.

What we found at a city wide level is that this level of spending is not sustainable, and that's why we do so

We talked through the departments budgets. we have 2 scenarios.

we look forward to having a more fome discussion with Council when we forward our budget to you in August

the general fund support for the city's budget for the city for the office of arts and culture is going to be eliminated

I wanted it to be on people's radars and also reminder that we are in budget season.

The General Fund does get some measure of property tax. I don't know how much.

This is not the entirety of our transportation and mobility department budget. There is a separate operational

the city also receives unanticipated donations or other new revenues that are committed to specific uses

the budget cycle also includes these two planned scheduled adjustments to base

we are here tonight to request approval of a supplemental appropriation to the 2024 budget

we have to go through the full city's budget process as well

Yeah, and those will be decisions you'll have to make when you actually start putting the budget together.

I'm hoping that we receive a just a a recommendation or even just an update I um with with the proposed budget and any gaps that are seen

we certainly go through in more detail when we're actually doing our budget planning process

This is the city wide budget, actually. And for 2024 it's between 600 million 618 million dollars.

They're different and separate from the city's general fund, which is primarily funded through sales space tax.

So the city manager is responsible for budget recommendations. Budget is not something that is within tabs purview.

We do have a revised budget in the general fund of about 6.6 2 million, and our base budget is 6.1 million

When we looked at it again this year. The budgets just really are too large right to manage.

So we did go through a very careful look throughout our budgets, and we looked to align budget within work groups.

perhaps the biggest budget hit would be to the general fund to fund airport maintenance and improvements

Make a line item in our Budget Council happy to have the Board have further discussion

so the hill investors are funded by the general fund.

but then budgets have been hit, too. Wasn't one of the last meetings?

it was making up for that permanent revenue deficit from last year

also talk about during our hopefully, our next meeting is the budget.

I mean our budget this week, I heard, is just horrible like bad for everything

where 0 point 1 5% of the sales tax will be going back to the general fund and away from the transportation fund.

So we are here to talk about what the capital improvement program is and how it differs from the annual budget

making sure that all the financial information that we present is correct with our budget and cip development practices and standards

we will end with a budget timeline sharing with the community and with you all

in terms of our uh budget development process and the calendar of our 2025 budget

the Citywide operating budget uh which is this yellow line the general fund total budget and the general fund ongoing budget

always nice to see our budget to actuals over perform in revenue and underperform and expenses.

But then the 2024 budget is backup near the 2023 budget. Just kind of wondering why that is

What is the status of the request to City council for the additional $10,000 a year from the general fund to keep up the momentum

we are in the process of preparing the budget for 2025

I understand that the city budget process is starting soon and the allocation of 2A funds is under discussion

we are asking you to please have the city manager put the Arts money back in the general fund thank you

prepare um for 2025 budget if the team after

when the budget is coming to us uh the in the summer and fall

So our budget does change every year.

formulate, and develop our annual budget and then present that for approval

we will spend a lot of time developing this budget, talking about the Recreation Activity fund monitoring this throughout the year

for the budget allocation for this year um what sort of Vis visible product

if we wanted to pursue that as a priority we need to look at trade-offs and and future budgets

do you see it as being something that kind of fits into already planned budget

We were able to add. Add to. The everest budget.

We have to be more. Careful with how we disperse our 1 million dollar budget, because in 2020.

We spend the bulk of our. Are. Budget on rental assistance.

council will review the capital improvement program as it goes through the annual budget process

Is it fair to ask whether there's a budget baked into this to guarantee the storytelling piece?

Then then maybe that would be your budget. Item, yeah.

I'm wondering, like, if we could have a budget where we have actual experienced therapist.

So does this panel have a permitted budget? Or is it just one time dollars

additional funds will be needed to implement all cancorder recommendations

additional funding to hire one additional photo Enforcement officer.

because that's just going to make your problems worse. I want more money for transportation.

we're implementing as a part of budget for resilience or outcome based budget approach where we're trying to tie our investments to our outcomes.

With our budget projections in May to talk about it

Where does funding come into our discussion of priorities and things like that?

is this Federal money or the type of money. It is is this coming out of our general fund?

There's not enough in the budget for them to even be able to tell me about the engagement meeting

Really, what's what this process is tied to is the 2,025 budget cycle.

we have $66 million in in the budget right now about 51 million of that

how the budgeting will go through when it relates to the restoration

So they give us cash for general fund, and then they also give us such an amount.

The general fund is like us saying, the city. Please give us an allocation that we deserve as a city department.

As we look across the fund you'll see where the general fund has been pretty stable from 2019

You aren't. You know, the developers aren't paying. You're always in some form of deficit.

we include federal funds on our budget and we don't have a say in how these federal funds go to support this genocide

We had to go to the voters to secure dollars that are transmitted to our general fund the franchise fee

we're feeling confident that in 3 years we'll be able to be off of the arpa and off of the general fund

worst case scenario, we build a budget that is taking this into consideration and then sales tax receipts.

Currently, the general fund does a transfer of 270,000 a year.

the city budget is struggling with the amount of money it costs to implement.

The more people are here, and the more you have in your budget to service those people

our our municipal budget is going to continue to be constrained

It would be a a very significant project from a budget request standpoint

we would be looking that as City dollars and we would look at all the Departments so we try not to siphon out these are City monies not Department Monies

just trying to make sense of the budget numbers and I think I saw on an earlier slide that our um budget is $9 million for expenditures

these individuals have a significant impact on the budgets of the agencies that serve and respond to them so what you see in this slide here

We got 1.5 million dollars a year from the general fund for subsidizing recreation

The 24 budget $750,000 in funding the support recreation so that we can maintain these service levels

ongoing monitoring of the revenues and what it means for Project funding is part of the ongoing budget

we had to find a budget that didn't exist um so we didn't want to make

I believe the majority of those are in the capital Improvement program and so they have an Associated budget

This is gonna be something that we bring up for the next budget cycle

We get general fund to help fund our temporary program

we've got about $60 million budgeted for this year in 2024 does that include

our current 2024 budget is approximately $16 million with most expenditures being predominantly devoted to CIP work

I wanna say about $300,000 per year annually from utilities.

It could significantly impact the budget and cause it area planning effort.

So we didn't discuss this last year, which means it didn't make into this budget, and it will be next budget

we could look at other mechanisms other levers that we could pull within the 2025 budget uh process

we don't have a good answer where where we left our budget projections in November was that we had about half a million in the general fund

some of them are supporting things that are already uh coming out of the uh um the general fund budget

So those are the numbers that are supposed to pay attention to, because once this figures, it ends

there was significant budget for activation in 2,023. That is not that budget

So we think that number is going to be closer to that budget number

we have identified sources in the general fund um but we've also been looking at

help us develop what could be um that availability payment within our budgets

it's made up of you see in Blue City dollars from our general fund or other dedicated sources

Certainly that revenue would go to the district on street would go to the general fund

because the position was, it was, it was. It's general fund funded so not funded by the district.

through the 2024 budget cycle process. So that's on the list

and then just to note um we have bu budget allocated throughout the year so 2020 24 you can see throughout 500k 2 million in 2025 2026 10 million in 2027

well it's weird because we were talking about cutting that travel budget so here we go okay don't need to bring that up

Financial strategy committee uh Nicole or Mark um you want to talk about this one uh th this is actually a a reasonably rigorous lift um uh you know it involves analyzing the budget

a motion to adopt ordinance 8614 approving supplemental Appropriations to the 2023 budget

great to clarify what we're doing tonight is the last one for the 2023 budget

is there any a any push back from the city when you roll money over to the following year

we get to work on the budget like they they make staff will make the recommendation as to how to allocate our budget

Terms of making a recommendation to city council about how would we budget that

we do receive a general fund subsidy in about 1.6 million a year

recommendations on our current court system and our current uh budget that we have approved

it's money that you're that's not that's coming out of Department's budget

are we applying the right priorities as we budget those revenues for municipal Services

she advocated for bringing open gov to the city to make the city's half billion dollar budget more accessible

What are the services that we're able to provide within the budget that we have available to us

what is the 10 Year Budget? What is that long term plan for the district?

I do have. I'm sorry to ask one budget question, because I know you said that

what is the change in the the budget for this? But also relatively.

and work towards implementing those which will include a a look at future budgets in a budget.

we will be duly incorporating that into our budget for next year and we will be bringing that forward

how much more we going to have to go raise through a bond or um an appropriation from the general fund

and I think, but the budget from my understanding opens up more in 2,024, and that in 2,023 it is

You are currently still in general fund operation. The reason for coming to the demo.

as a way to possibly ease The Debt Service burden and make it uh potentially more financially viable for us

we have to balance that uh with our need to stay financially solvent if we took this approach

without nearly doubling our city debt uh and imposing a nearly $14 million annual burden on the general fund

If the general fund cannot provide it in 25, then we are going to propose reducing parks and recreation spend on other categories

the 24 budget has to be built as if that tax will expire

Revenue is coming in at 9.6 million for the year

so that brings your total 2024 budget um to 55.3 million uh very similar to last year's budget

in the 2024 uh budget and the brief uh overview of the total budget numbers

the library district approved by voters last year removes $10 million in library Services expenses from the budget specifically from the general fund

that was just funded forever with well, hopefully, we'll be funded forever if this next budget passes

they really tried to gather input on some of those budget choices and bring that back to the the team as a whole

I think one is a budget matter, and then the second is the ordinance.

when individuals in the department have not been transparent about budgets like this

private utility costs typically aren't included in city budgets

And I understand there's limited budget. But but yet there's things that to me are are no brainers

any unused funds do go to fund balance at the end of the year

we put together recommended budget that we felt reflects Community needs and balanced a number of of needs

the 2024 recommended budget uh is a $14.8 million budget across all funds

it could be helpful to touch on this in the budget discussions

because this has big budget implications especially heading into a year where we have very very little wiggle room

so we saw in our budget study session a couple weeks ago

But there is funding in the city wide budget for increasing for all staff.

The 2024 citywide budget is the next agenda. Item.

you're going to be seeing a budget coming forward to you soon and there is an additional policy planner

even as you reduce the rate the amount of money going into the budget should still be increasing.

Commission's already recommended approval of the 2024 budget that included projected revenues associated with the current mill levies

as Council deliberates on the budget, and any requests that they have for budget changes

next on our agenda we have the 2024 recommended budget discussion

the need is much greater than the resources available and and you heard that tonight

that is not currently in the recommended budget so that would have to be added in to the budget before first reading

What we're trying to do with city Council just for your awareness is to have them make recommended changes to the recommended budget prior to first reading.

and from departments we received over 26 million dollars in plus almost a hundred ftd.

with general fund in particular. You know, we have very limited room going into the budget.

About as much as our budget can allow. Sorry.

in the context of a city budget. If we look at a bar chart of deaths

this budget tracks last year's budget tracks the previous budget we're really making almost incremental improvements

The city manager's office had the the draft final budget that is moving forward to city council.

we do currently have some funding uh in our current budget as well as a 2024 budget to specifically deal with

so we have not included this in the upcoming 2024 budget yet it could be that it comes to counsel

Reinvesting those funds in 2025 would actually result in a negative fund balance for you, jet by 2,027.

So the General Fund transfer helps offset. You did expenses related to general fund activities such as the Eco path program

So the city just released its 2024 budget. Of course, that includes my department's funding

Probably that's not going to solve the long-term issue in the fund. So there's there's that factor.

the recommended budget that is going to city council keeps the level of of subsidy, or the level of transfer from the general fund

There were a number of new expenditures that Council approved in 2023, 2022 for 2023 budget that impacted our flexibility.

the budget is one of the most important things that we do

they were able to make the the finances were to not have significant subsidies certainly not subsidy from from their General funds okay

14 million is 7.5 percent of the 2023 general fund budget so it is not an insubstantial sum when compared to the total also through the 2024 budget process

we would need to either re-prioritize general fund uh programs and services to the tune of approximately 14 million dollars or we could ask voters for a new increment of tax

we're highlighting the the overall picture of the general fund and and focusing on fund balance after Reserve

we have crafted a budget that when you see it in full with the 2024 recommended budget

had a chance to review the 2024 recommended budget yet and that opportunity is coming up here in in September

That was part of our budget reductions, and and also thinking about the anomaly of it.

relies heavily on the general fund in contrast the city's other Special Districts

we know we have to get off the the generosity of the general fund

and also um the generous general fund transfers

we shifted the budget for the Boulder Conference

Just the way the budget is is rolling out. We will have we'll be able to send one person

are you prepared to make choices at 3.75 deduction from general fund revenues

other things that are funded by General funds of course the Arts transcends all of these groups

The General Fund transfer offsets you. It expenses related to general fund activities, such as the eco-pass program

I will move to recommend the approval of the 2,024 community vitality proposed budget, including the 22 or 2029 Capital Improvement plan.

as we look at the overall budget process. I know we kind of went through this together.

particularly about the budget for the Monitor and the panel whether or not how the process should be delineated

My comments tonight concerning the fee, policy and budget strategy portion of this evening's agenda.

Would you like to make a motion? I'll make a motion to approve the recommended budget

and then again, these proposals are across the entire community by talent budget which wanted to bring them to your attention.

Look at the overall budget process, give a little bit of context for the entire community vitality budget

is the operations and maintenance budget adequate to cover necessary design

Each year's budget process is really focused on the next year.

whether or not they're prepared to zero out the rest of the general fund money

compared to the overall general fund which went up about 42 over that time

that I just wanted to fly in the list. the spending session on the budget.

I just wanted to give a little bit of context for the entire community vitality budget

if you all are comfortable with recommending for approving the recommended budget

the general fund contribution to investors is $372,000 a year depending on where we go

Planning board also does not get to direct approval on the operating budget.

Are there other main budget items or proposals that will go to council.

I think that historically, the cip has represented probably depending on year to year anywhere from 25 to 35% of the overall budget.

finalists are from work with the our budget here is 18,000 $750,000.

but the 6,000 only cover there the cost of the certificate. So it didn't help for anything else.

Can you please remind me, was there a budget submitted? as part of the the process.

Interestingly, we're just starting through the city budget process and utilities.

we do plan to come back to you and report on what the status is. what changes are made through the recommendations of the executive budget team

we still have 6 months left in the year to go through the budget process

since this is an expiring general fund general purpose tax

and doubles also the Osbt deficit of 300 million 2 multiples of that.

we will have to think about getting that approved through budget and hiring folks to move forward

We should be talking about growing the the funding

when we go for our annual budget request, that's specifically for

will be budgeting appropriately for the 2024 budget as well

And then September 14, there's 30 session on the 2024 budget.

lastly budget is recommending the transfer of about six point sorry 10.62 million in fund balance

departments meet those needs by utilizing their existing appropriation without an adjustment

each year we have at least two supplemental budget Appropriations which are presented to city council for review and approval

we have current wage budgets and departments for seasonal and temporary employees

in our budgets you know we're spending more than we could in an efficient budget

have we done any analysis on the city budget with the proposal

as we approach our periodic conversations about budget is not only sort of repeat of past years

You have an advisory role with the rest of the budget.

And then we take those recommendations, and we request the funds in an adjustment space so we can't get them automatically.

No, we don't get the general funds, that they do and that's a different model

the level of subsidy is that has been received from the general fund

we're bringing forward a budget proposal this year to add staff to our maintenance team

submit those approved commission budgets in the department budget to the the Budget Office

we are proposing that there is a joint, our sort of combined commission budget meeting

that feeds into the city Wide budget That council then reviews and adopts

provided city budget and so on, will allow, or even if if we're allowed to get together

you can see our 2023 adopted budget where we've increased 22 million in general fund

you will see a structural deficit this year when we produce the fund financials for the general fund

that we can put into our budget terms and help guide departments as they develop budgets over the next

It has been a hey? Pick your legal counsel and set your budget.

the panel in the Monitor have a shared budget, and if we wanted to apply budget to hiring independent legal counsel

Primary budget, Review and Joint CD. Annual Budget Approval meeting. We can combine those together.

The intent is actually to bring forward the budget in a joint commission meeting in June.

you know one that I would like to make on the budget, and maybe this will allow you to table it a little easier.

I think we we want more money in general for accomplishing stuff we'd like to see done.

if we start thinking about what we're competing against in the general fund

There's a lot of competing priorities across the organization for very limited dollars.

Those are functions that are handled on a city and department level through our operational budgets.

our all of our on street program is a general fund program.

We just kind of run through the budget calendar high level again. We're right in that Budget development phase in April

by the July meeting, we've already submitted those budgets to counsel, and so we're looking to those

I know we're going to start budget stuff soon and we I know folks have been kind of putting in priorities

We will be discussing the general fund subsidy level at a high level, and then we do have a few questions for you as we do go through this.

we do look at this on an annual basis, and really review it closely with the finance department as we go through the city by budget process

We are receiving about 2.1 million as a general fund subsidy.

are we looking to the general fund to to pay that or are we going to bond it

Do you know of hand what the budget is for this effort?

So I half of about half the program is paid for out of utilities funds, the other the city general funds

in the 2024 budget we will be likely requesting from city council an amount somewhere between four and five million dollars of general fund money

We're not providing them. Western is providing numbers that we use general fund money.

So the Council budget line it, and did approve funding for 3 downstairs downtown as the program at all.

these dumpsters are all publicly funded through the general funds the council of her last year.

a large piece of transportation's input to the overall budget process

If the general fund subsidy does not. I think it's 2.1 million dollars.

This is the chart on the right hand side, showing that in 2023. We have received about 2.1 million in funding

A year later City Council does a study session in September, and then there are 2 public hearings in October to adopt the budget.

we have dozens and dozens and dozens of things we need to fund and we have no source of funding for them

the current funding is identified through uh arpa which is related to the revitalization efforts in commercial districts

for maybe budget ramifications and a budget packet as we go into next year

Their final direction to Staff was to just the budget by $250,000, and so part of the recommendations

We're bringing forward a budget proposal that there we still will need property rights to access drainages

it's part of the cip process to determine budget and and scheduling

you'd be putting forward a budget item? Separate apart from this for additional resources to do more maintenance

So we have our general funds that we get about the 6 million, and then we do receive that general fund subsidy

So now we are going to take a look at our uses of funds, so our expenses

We will spend a lot of time developing this budget.

our 2023 general fund budget is approximately 188 million dollars

the recommended budget date release which is currently scheduled for September 1st

we do think it will be meaningful to prioritizing These funds in the 2024 budget we'll establish some of that policy

because the budget is 4 times last year and 10 times 2,019.

Maybe because right now we're discussing the budget.

the big influence you all do have is support of the budget that we develop on an annual basis

I think we had some some pretty robust conversations about the Bjet parking district and the the budgets there

increases to service levels requiring additional funding would require a formal budget request for the 2,025 budget year

Additional funds would need to be requested from the city council for the 2,025 budget year

additional funds would need to be requested from city council through a formal budget process for the 2,025 budget year

and planning for 2,024 will be lobbying for an increase in the general fund

important considerations for the resources to make sure these fit within city budgets

the district would reimburse the city for for the provision of services in 2023

we're at about 2.6 million proposed for 2023 with the supplemental funding compared to that two million dollar 2024 Target

Open Space Mountain Parks were in a huge deficit in those funds

it's probably upside the scope over the budget of the City of Boulder.

But you know our our budget is pretty limited for the historic preservation.

the city is covering the cost in this case, because it's a second opinion, and we have a pretty small operating budget.

The second item relates to the upcoming budget process, and just really wanting to flag for the board

to to make recommendations to council on those plans and and the budget are really meaningful

in May we get into the normal budget process and kind of a 3 meeting series there

The budget will be approved in October. It would be really nice to have a better runway to develop some of these things

reviewing all of our dedicated funds and what really are the restrictions on the uses for the dedicated funds

last year's budget process the funds were provided for us to lift up a second crew

HHS was simply relying on the budget of the city of Boulder

What's the what's the budget? How much tax that is being raised for this program.

therefore it seems like you can't really tell where the city's money is going.

300 300 million dollar deficit on the Open Space Program how are you going to pay for all of this

we really want to understand the costs. What are the budget implications both for implementation

I think it also would just need to be, You know, conversation about shifting work, plan priorities and budget priorities to accommodate that.

Given the constraints of the right of way, competing needs and a constrained budget.

we can't pay for it we're in deficit with our Open Space Mountain Parks heavily

But what I do know is that you know, Council, directed the Budget Office. Look at all sources

Council asks that the staff recommendation of $150,000 actually be expanded from whatever source to a total of $250,000.

it will happen in tandem with the 2,024 budget development

this ties to the library allocation because we have submitted over 8 million dollars in funding requests

we need to be forward thinking so as we're putting in budget request for 2,024

any loss in revenue is not affecting nonprofits and I was just wondering if we have a way that we can actually track that

The first is the 175 back to parking, and then there's also a $300.

we've had a lot of conversations about the budget.

the backbone price uh we were budgeted for 20 million dollars um for that I believe we're going to come in a little under budget

we've spent a lot of time talking with you all about the 2,023 budget

So several times throughout the year Staff will approach Council with budget changes for that fiscal year's budget.

We want to borrow back from the general fund $25,000, and it gets us 3 more street.

I know that the admission tax goes to the general fund right?

we certainly do approach city council and and continue to be successful in arguing for a general fund transfer.

last time I spoke about the city budget I said a budget is a moral document

There are general fund dollars that fund the municipal Library, with the establishment of the the library district.

I mean, we just have limited ability. just you know there's only so much we can do, and we have to focus.

It's anticipated that approximately 3 quarters of the budget, for the project would be through the 3

one being that we will not have another budget to look at like the library commission will no longer have a budget

How do we manage the public's priorities for the library, with the trade-offs of budget, operational, technological.

it had to be taken off the plate because of budget shortfalls

what this budget adjustment proposes to do is appropriate approximately 7 million in funding

those are typically scheduled twice a year in May and November

to discuss arpa again our third tranche of spending and our last adjustment to base of our budget for this year

Uh. I believe we move money around from our maintenance budget to make that happen.

each of us is asking for twenty five hundred dollars and each one is designated uh in our budgets

we are seeking uh 2500 uh towards the support of of this uh event um of the MLK uh weekend

that was assigned to um the NAACP and that's twelve hundred dollars that we had assigned there

our biggest um increase in twenty-three is focused on restoring um, continuing to restore people and positions.

as of the end of October we do have an adopted and approved twenty-three budget

we got 20.1 million in arpa funds so there seems to be like 300 000 still left over to allocate

the remaining balance as you mentioned a little over 500k and our discussion at a couple of our budget meetings

50 to 40 percent of the current climate action budget is paychecks and there's no honest cost benefit analysis

we would do that through the regular budgeting process

while our budget was getting smaller during the Covid era

Okay, smart guy, how would you fix our like budget shortfall

we very much appreciate the additional staff that you approved as part of the budget the additional Consulting dollars

continuing this conversation regarding, you know, the general fund transfer and working to increase that

I didn't like the reduction in the general fund contribution, and if in if we were going to vote on it

Doesn't like the reduction in the general fund contribution, and would not support approving the budget if asked to vote at this time

the idea of trying to find 1.3 million dollars in a budget that was already approved is challenging if not impossible

beginning in 2,023, the budget itself will be the 1711 point, 0, 6 plus the 3 point, 6 million

Most of the update is around the adjustment to base, which, as you can see

we've got a large budget for city of the size that holders, but we're not a very large city in terms of the country

Then 20% of the city budget, I mean the money I guess it's there for the groaning

I think particularly the budget implications of resourcing all of these

this is a really strong call to action for the city in their budget to put their money where their mouth is

give you an overview of the two thousand and twenty-three budget that city council approved last week with a seven to two vote

every item that they reviewed for the two thousand and twenty-three budget we shared with them your feedback

or necessarily less less budget um for the police department maybe maybe not

the city having recently passed its budget um you know one one of the goals

that if you as an HRC are interested in having us a short briefing about you know what that budget looks like

if Council would be able to change any of these individual budgets without impacting the appropriation ordinances later

513.5 million dollar package and as amended is now a five 515 million point 515.4 million dollar recommended budget

the recommended budget as presented in September does include all district related Affairs

So I don't have the budget today, but it will be a part of our requests discussion in the next budget cycle

thinking about when the or the budget is re-figured in April, this is what we're asking

the budget that she has recommended to city council represents what Staff has said

Council appropriated 1.7 million so far this year and a special ATP earlier uh this March and have planned appropriation of 28.1 million in the 2023 recommended budget

It wouldn't be a general fund subsidy to to the benefit

staff would consider requesting funds in the two thousand and twenty-four departmental budget, or seek future grant funding opportunities

In general. The approach for the canned funding strategy is to use local funds for design and community engagement.

this shows how does our 2023 budget compare to a pre-pandemic budget if it was adjusted for inflation

eighty thousand dollars would be added to the general fund to support those additional trash management strategies

the 2023 recommended budget for arts and culture is 2.5 million which meets that CCP Target

that would be the appropriate time to look across our entire budget and make those decisions

the number that we're targeting this evening and planning ahead for that potential reallocation is that 9.75 to 10.75 million dollars

beginning with the 2023 recommended Library budget uh you'll notice here that the recommended budget includes

certainly as we're in the midst of budget conversation not that it happens now

boards and Council will have the opportunity to consider proposed projects as part of the annual budget cycle

is a comparison for just the operating budget since capital budgets can go up and down quite significantly depending upon large projects

the council has had a goal of 20 reserves or approximately 10 and a half weeks of operating expenses and that is included in the 2023 recommended budget

our suggested process is to continue that work with fsc to better align uh our budget strategy and master plans

for full disclosure that we're voting for the full budget amount any other any thoughts on that

What is our budget for the panel, and what other ways can those budgets be used?

Are we setting aside budget if we choose to do that one to compensate all people.

the current two thousand and twenty-three budget doesn't include any additional staff or um historic reservations specifically

I'd love to see as far as the budget 750 000 budgeted for the day Center

should be spending nearly 30 million dollars compared to roughly 10 million or if you go the other direction we should cut our budget down

stop the insanity stop throwing money at the police budget and start funding the root causes

this is sustained by a lack of real financial accountability and transparency for example it took a couple of years

and that we had in we were planning to increase that and the new

it also allows for the city to do a backup pledge from the general fund

it would not impact uh next year's budget and i believe it really wouldn't come into play

we'd have to kind of loan the city would kind of loan money to the library district for for a couple of years

60% of the department's budget is the capital improvement program, which is the five year budget for capital projects

she's really interested do they ever give feedback on Councils budget discussions, because those are starting soon

Transportation policy is organized a budget I think most

Recent but budget reductions have prevented timely vehicle replacement and then supply chain issues increased vehicle downtime.

operate more as an enterprise fund, not a drain on the general fund

we will have a study session three hours dedicated to our budget process on september 8th

we have two different sources of general fund funding

five thousand dollars and individual council members to have an annual travel budget of four thousand dollars

budgets were slightly increased to account for the inflation that we've been noticing

currently travel budgets a lot twenty thousand dollars annually for group travel uh now that doesn't necessarily mean you all go places

we try to build in a pretty healthy inflation and contingency factor to help address the likelihood of increased causes that project

is there an interplay between the cost of maintaining those new facilities. And the plans that call for those new facilities

it differs from the annual budgets in the programmatic elements

in march we brought to you a proposal for a 250 250 000 um arpa budget item in the atb

it's a little hard obviously outside of kind of a budget conversation

how about they publish their budget like the muni did thus revealing the true costs

the scope and magnitude of how much the budget for that project can accommodate

beyond the capacity of the annual operating budget that is more focused on

will just require trade offs to our work plan and budget on consideration

We raised the travel funds for the nickel conference to, or we requested to raise the travel funds from

We put into the budget requests this budget request cycle 10,000 additional 10,000 for outreach

that's why i've been asking about what is the budget for our panel, not only for our committee

every year in our budget process we bring forward a six-year capital improvement program

we have a general fund budget of about 166 million in an operating budget of 300 million

budgeting is the biggest policy document that we adopt every year we also had a number of budget policies

in the first adjustment to base in may of 2021 we did add 37 million dollars to the budget

then you're approving budgets that are supporting all of those things because the budget is the bottom line

there are a few different types of budget adjustments we have clarified these from previous memos

the first one is outreach and engagement we're going to try to get that get about a $10,000 budget for that

Another item 2023 budgets wanted to raise with all of you, we have a couple of some financial decision points coming up for the 2023 budget.

agencies typically derive about 60 percent of their operating expenditures from general fund tax support

we will have updated costs that we plan to bring forward in the budget process this year

could the county potentially contribute some general fund money of theirs

the city is still responsible for a large percentage of the funding for uh the library out of its general fund

To get a handle on our budget and the types of support that can be offered there

review and approve the ci P, which is transportations budget, which has been passed on to counsel

On what this is going to do to your budget if we go for see yourself.

the library staff also intend to request in the 20123 budget cycle the operating deficit that was cut due to the pandemic

they are actually budgeted costs which do show up in the overall City budget but do not show up under the library page

budgeting usually when you want to add budget to something you got to take something from someone else

budget adjustments are essentially budget amendments to the adopted budget

we'll be running through what we're calling a special adjustment to base or a budget amendment to the base 2022 budget

Before we make massive commitments that really eat up our multimodal improvement budget on things that are inherently

particularly one that starts eating up significant budget let's make sure it's actually connected to something

we'll ask within the context of the budget overall that's coming forward

we try to keep within our budget and certainly whenever we have an additional ask

and you asked for some uh budget relief and we gave you both of those

we'll be working on the 2023 budget here over the next few months

a motion to do a design that fit within the budget which they didn't do so

more explicit about what the trade offs that need to be made in order to be able to stay within that budget

in terms of project budgets, we are working very, very hard to be able to

we have a huge budget and this is in some ways a drop in that budget

budgetarily with our general funds from which we can then take care of some of these other things

about how we want budget decisions to be made as a panel. What we want, that process to look like

And on the budget question I didn't want to share sort of the financial picture with y'all so.

Do we have a budget things cost money. Yes. It costs money to do right the graphics and posting

Uh current 2022 operating budget of around $9 million um addresses the operating deficit due to the pandemic reductions

we'd project the library budget at about the general f fund Library budget at about 9 to 9.25 million

so right now um there's three sources of funds for that budget uh general fund is about 7.7 million

i've been watching the city increase the police budget while slashing all others

because i don't love to spend more than we need to in our own budget on on policing equipment

our budget is building back and I would say that we have monies that have been allocated for vacancies

any budget adjustments we do anticipate in the first adjustment to the base 20122 budget

we don't have a lot of extra budget but the budget that we had identified for consultant assistance

Is there any money in the budget to hire an external facilitator

some of those may be appropriate in our 23 budget process and so we're working through those at the moment

i feel we should set aside budget to pay for this important initiative

is vision zero a line item in our budget or is it a sub wine item of many line items in our budget

third thing is that overall within the city 2022 whenever the budget was put together was envisioned as a recovery year

so you can see the majority for the 28th street and colorado avenue intersection as well as the 38th street corridor improvements is coming from external sources

So, just a quick breakdown of the budget for the project so as you can see, the majority of the funds are federal

you will discuss issues such as racial equities when you're looking at you know what should be on the budget

including of course uh draft budget before it is presented to council and the last year we dealt with issues

2021 saw a total of four budget adjustments including atb2 this evening

during May and part of June the budget office is working with departments to put together a b budget package

this slide or graphic uh represents our typical annual budget cycle

as you may have remembered we had a very tight budget last year

I understand that you know we're bound we're we're constrained by by funding budgets available to do the work

We do have a rigorous process, but we just don't have an infinite amount of money

The reality is, is that we don't have an infinite budget we have a finite budget

the increases and our on Street rates from a125 to150 were included in the broad um budget proposal for 2022

as we discussed last time talking about the budget we are making a number of investments across restoration of services

the proposed 2022 recommended budget is actually 23.4 million so just put that out there

thank the city just for continuing to include this in the annual budgets

I can't look at a budget I can't look at a project and have it not be

that the extension of the median may be out of budget

the finance team will begin to develop options for the reallocation of general fund monies previously appropriated to the library

we're not really adding anything into reserves in the 2022 recommended budget

here is just a graph of our budgets between 2019 and 2022 the gray bar represents our operating budget

the 2021 end-of-year estimate our recommended budget which we're presenting this evening

the more money we're going to need and the more many we're already in deficit of

it also requests a total of nearly 1.9 million from 22 restricted funds from additional revenue and from fund balance

so we did in 2020 have to draw from fund balance and that draw was nearly 10 million dollars

in total the general fund requests are across seven departments and it totals just over 1.1 million

so this is now the shift to the general fund so if you look at this forecast our 2021 revised revenue projection is 157.4 million

our operations and maintenance budgets as i've stated are two times the industry standard

we have increasing funding needs to operate and maintain them as they are

we also have a recommendation to further explore a financial strategy to move to consolidation

highlighting some continued impacts, the code is have on the work plan and budget budget process

the thing to highlight here is that the budget does include some additional requests for transportation see IP

over the last decade many different ways to fund our capital needs tonight we're really focusing on the second renewal

are approximately 295 million in unmet infrastructure needs

into our finances into our budget because those resources are really what drive most of all the the programs

we do have asks coming in the 2022 budget directly um associated with the implementation of these uh strategies

we certainly are making sure that as as the finance and budget folks are working through the 2022 budget

there was no public hearing on the $2.7 million in the new budget to hire extra cops and Rangers

city council has appropriated 1.03 million from the general fund to cover uh to cover startup program costs

council will consider the 2022 budget in september and october

we have also asked and uh was approved by city council to appropriate appropriate a little over a million dollars from the general fund

that was my you know effectively my uh primary reason for requesting that be a public hearing

so many people have said during the pandemic that we've essentially lost our funding because of cuts to the city budgets

it is usually one of the very last items to consider in the budget and gets whatever money is left over

should we propose a budget to lobby the state to be like because if we can achieve

nothing's easy and certainly it always comes down to money and budget

City Council voted to increase. The police department's budget by six officers and three more vehicles to enforce sweeps

we include inflationary um factors associated because a lot of it was Personnel so there was Health Care increases

we're looking at needing over $122 million in um additional Revenue which would put us at a a potential deficit

for 2022 general fund we expect with our sales tax in um estimates as well as other taxes

so when we bring our our budget and our rate proposals forward for council approval

so that that money to pay for this project has already been allocated uh it it is in the annual budgets

as we go through uh the the summer uh in terms of the budget development

the allocation of Transportation transportation funding is a really important issue that all local governments battle for

budget reductions because of public health requirements as well as budget reductions because of the need to offer up

it wouldn't provide the base budget relief of taking the library off the books

it does get revised based upon new budgets for those support departments

it's not simply an appropriation it's an appropriation with the expectation of repayment correct

and we're increasing the police budget on the other while cutting all other community services

I have a specific request for Budget inclusion for 247 co-responding EMS mental crisis service

the majority of them are general fund-funded only projects and the focus was on the essential ones

our unfunded capital needs are so quite large far beyond the capacity to address from the general fund

in 2021 we budgeted around 6 million which is about 4 of the general fund revenue for uh general fund capital

thank you for restoring nearly all of the Arts funding in this year's City budget

many question why the 25 million should be paid via our water bills and not from some other source such as the general fund

the npp program generates less than half of the funding that would be needed for operational administrative and capital expenses

it's earmarked right now in general fund as a bond payment

S SO DOEOES I ITT MAKEE SES AA CONSIDERATION IN THE BUDGET FOR THEHE COMMITTEEEE CONSIDERR

BUBUT THEHE TRUTH I IS EVEN I ID WEWE NEEEEDD T TOO PLANN LONONGT THIS I IS SOMETHING WE WOULDLD E FUNDINGG PROBABLYY FROMM THEHE GENERAL FUND.

the cost for the team would be around two hundred and forty thousand dollars a year but we believe this would replace

I do not believe any of this operational cleanup is funded by housing and Human Services it's a mix of funding

the changing fiscal situation and resulting budget cuts have disappropriately impacted boulder parks and rec department

for both this current year's budget as well as um further integrating that into the 2022 budget development process

the budget cuts that the library has faced cutting 17 percent of the budget which has made operations difficult all around

right now during Co we are um at a precarious time in our um budget

have spent their separate budgets working 80 to 100% of their time

they kind of get spread amongst different budgets and we can't really pin down the full costs of them

the general fund and health equity funds make all the difference in the ability to provide discounts

where does the city prioritize budget expenditures And how much are we putting towards vegetation management and green infrastructure development

we plan to come forward with a budget for the partnership along with the close out of

from the savings Associated or the unspent money from the municipalization effort

paying off a debt of a little over $1.4 million that we owe to the general fund

I have often cited this, that, you know, we would 5% of the city of boulders budget as A child transfer

reallocating a portion of the city's current budget for law enforcement to the boulder housing and human services

The resources are already strained. If we know resources exist in one area and we can reallocate them.

our housing department budget was cut by $10.9 million from 2018 and with Boulder's ongoing housing

consider in its formulation of a 2021 budget to divest funds from the Boulder Police Department

the $1.4 million that the mun borrowed from the general fund could have been used for real carbon reduction

tab acknowledges the city's current budget limitations that the transportation and mobility departments has in 2021

we simply cannot sustain the same amount of funding that we've done in recent years

we have approximately fifty thousand dollars budgeted and of course the impacts from coven 19 has had a tremendous effect on the city's budget

I implore you to reconsider this budget cut and find a different solution

the city's operating budget represents 80% of the total budget

public hearing is the second reading of items related to the 2021 budget

staff furlows layoffs uh budget reductions that were caused because of the pandemic

one thing I I want to talk about is our need to um replenish our general fund reserves

I will note uh we have a total of 41 budgeted funds which is a lot

this is very much the thing that you often see in our budgets which we Pro talk about our revenues

that's part of why i asked about the budget like do we have some extra money or is there some finagling we can do

so we increased our funding into housing um this year um if you remember part of the approach was to continuously work at getting individuals housed

since in my experience construction budgets only move one way and that's up what happens uh if you are short of funds

we did have to cut those things out because of budget shortfall

ongoing operating budget concerns the last thing the taxpayers should have are expenditures for a 13 000 square foot facility

this is that same uh recommended budget uh by Department however it excludes that utilities piece

$341.25 million is operating and just over 69 million is capital

we begin that budget process we look at what is our revenue forecast and then we look at what were our previously approved ongoing budgets

municipalities or cities and towns aren't exactly going to have booming budgets in the next few years given the current situation

seeking new funding resources to potentially expand the program and um fill that position of the green rays coordinator

that does not affect our budget and I think that putting a contingency in a ballot initiative

I would like to remind everyone that we are in a budgetary a very constrained budgetary situation which has required layoffs

THE GENERAL FUND PORTION I THINK THE CITY WILL BE COVERED BECAUSE THERE'S A FRANCHISE FEE REPLACEMENT

ANTICIPATE THAT WE WOULD BORROW THE U TWENTY TWENTY TWO REVENUE FROM THE UTILITY OCCUPATION TAX IN TWENTY TWENTY ONE

WHAT WE NEED TO START DOING IS ADJUSTING BUDGETS BECAUSE WE DO HAVE

the city's budget shortfall is a problem and that too will pass

overall our Revenue still is down in June for a lot of our funds the general fund as you can see is down

that generates a little bit over four million dollars a year for the general fund

the original plan was to ask for a general fund loan to fill the gap between what the taxes were paying for

that provides the city over four million dollars a year that goes to the general fund

I think we still below the general fund about 1.4 million I'd want to repay that too once those bills are paid

so the um the general fund portion will now be replaced by a franchise fee in approximately the same amount

these are annual payments to the city 4.7 million goes to the general fund

so that it doesn't have to come out of uh General funds

the date on which we have to have a budget I can see having more

general fund Revenue in these areas for May down 52 to 100 percent year-to-date down 36 through 80 for general fund

we would have to um put a sort of a project plan together and do a budget for that

what would be the impact on HHS budget if we were to have a public-private partnership

even in the face of severe city budget shortfalls it is more important to not

the issues about defunding the police relate to our budget and you will be having your major budget study session on september 8th

we have to reduce our 2020 and 2021 budgets as part of Citywide reductions

the concern about shortfall of budget is very real and I honor it

We want to play the police budget lessons and funding reallocated to housing and Human Services

at a time when the city is is cutting budget and furlough people

the city is currently going through its budget and looking at the different priorities

in the budget strategy subcommittee we were presented with the the budgeting for community resilience report

figured out how to cut $4.5 million out of the budget this year

we're suggesting that the general fund could be down between 16.7 million and 21 million

STAFF CONTINUE TO WORK TO ADDRESS REVENUE SHORTFALLS WHICH COULD IMPACT THE SCOPE OF SERVICES

as a result of that they did hear from the local governments across the state that average general fund expenditure reduction of 21

we have a base budget that's based on historical amounts and we also inflate that for or we increase that

it is limited for necessary expenditures incurred due to the covet 19 crisis and ones that were not accounted for in the budget

if you take money from the general fund again it reveals a gambler's addiction

GOING TO CONTINUE TO REVIEW OUR OPERATING AND CAPITAL BUDGETS AND TOMORROW OUR EXECUTIVE TEAM WILL BE REVIEWING.

WE TALKED ABOUT THE ACTIONS TO CLOSE THE GAP CERTAINLY LOOKING AT OUR RESERVES WILL BE ON AS WE MOVE FORWARD IN.

THAT THIS HAS AN IMPACT ON A BUDGET BUT WE DO STILL HAVE A BUDGET

once again rate the now depleted general fund

everybody's going to be in budget shortfalls the city is not in

this takes the same information about our 2019 excess fund balance or excess revenues and breaks it out by fund

we set a pretty conservative base budget for that so what scenario one says is that we meet our base budget

THE BUDGET APPROACH IN GENERAL THAT I KNOW SEVERAL COUNCIL MEMBERS HAD BEEN WORKING ON

50 percent of our general fund revenue comes from sales and use taxes

the longer impact is gonna be our economy our budget you know

our reserves my shaky math is near accurate represent about two and a half months

which is how the city budgets how much more each year on top of the previous year's amount

so yeah you've walked through a ten year funding plan for both action and vision

and tie them closer to the budget process next slide

in the memo it looks like there's still a deficit or a disparity in in accomplishing several of the packages where the funding sources have been identified

we are taking part of our budget our operating budget and we're paying the tenants

we heard that the cost the city of operating the library including the capital and the overhead was in the fifteen point five million

one is the operating expense which is a budgeted number within the city's general fund

Parks and Rec didn't have that in their budget so that's something for council to be aware of

there would be funds available in every budget year those funds would go to the general fund

we're deferring maintenance we're not going to find it within our existing budget

we again coordinated with all of our partners internal and external to cover the 2020 v-cycle funding and deficits

for about three point five percent of the city of boulders budget

recommend Council for year 2021 budget with the master plan priorities to ensure that revenue projection reflect

the budget and so I think we need to keep that in mind as well so if you can supply

that's precisely one of the reasons that we're working on the budget the deep dive

we don't have a huge budget for that in the coming years we've tried this as part of the strategy

in 2020 our the approved budget is $700,000 for our Acquisitions versus 5.4 million back in 2018

consider this as part of the budget strategy project

in the 2020 budget we will um be hiring a language access person

where we fall in the general fund where a general fund department we are 13% of the overall general fund budget

trying to set aside general fund monies into an infrastructure internal fund for the general fund

this is a cash flow problem not necessarily a debt problem if we only spend seven point eight million dollars

during the budget process as you know it's something that we've had a philosophy of operation

that's going to generate to hopefully offset some of this cost