the good afternoon everyone I'm going to call to order the special meeting of the city council to s 4 30 p.m. Madam City clerk roll call please. Let the record reflect that all members are in attendance this evening. Thank you. Next we have public input at this time. Many members of the public may address the council on matters which are on the special meeting agenda. If any members of the public were participating through Zoom wish to address the council please raise your hand and if you're calling in police press star 9 to raise your hand. Madam City clerk can request a speak. No, Mr. Thank you. Next we're gonna move on to our special item, which is a budget workshop this evening for fiscal year's 2025-20, through 2027. I'm gonna turn it over to city manager Aldo Shunler. Thank you, Mayor. I will start tonight's presentation with the video we've displayed on our social media platforms, communicating our budget activities. This has been a continued effort in our behalf to improve and increase our communication with our residents. Tonight we'll present a proposed 10-year fiscal sustainability strategy intended to align our recurring revenues with our recurring expenses in a sustainable manner over the next 10 years. Our continued objectives will be to increase general fund recurring revenues by advancing development of city-owned properties which will generate ongoing sales tax and property taxes, decrease general fund reoccurring expenses by continuing to explore and unfunded accrued liability pay down strategy, and utilize non-reoccurring revenues to support city council's general fund reserve policy to maintain a reserve level at least 15%. After the video, our assistant city manager Nicole Bernardo will start the staff presentation followed by our Finance Director Jennifer King. With that I'll ask our City clerk to start our video. The City of Tessence budget is more than just numbers. It's a reflection of our community's priorities. It helps guide how we deliver essential services while ensuring long-term financial stability. Right now we're developing the 2025-2027 Bianneal Budget, which will cover the two-year period from July 1st, 2020 June 30th, 2020-07. Although we plan on a two-year cycle, the budget is reviewed every year to stay aligned with changing economic conditions and community needs. At the heart of our financial planning is the General Fund. This is the city's main operating fund, supporting the services you rely on every day, like public safety, street maintenance, parks and recreation, and the day-to-day work that keeps testing moving. The General Fund is made up of three key components, revenues, expenses, and reserves. Most General Fund revenue or money coming into the city is derived from sales tax and property taxes. The remaining revenue about 30% comes from a variety of sources such as planning and building fees, recreation programs, and other service-related revenues. Here's how your tax dollars are distributed. For every dollar of property tax paid in Tustin, the city receives just 13 cents. 44 cents goes to Tustin Unified School District, and 43 cents is shared among state, county, and other local agencies, including water and sanitation districts. The sales tax rate in Tustin is 7.75%. Of that, the city keeps 1% while the rest is distributed to the state and county. Around half of the city's general fund spending goes toward public safety, supporting the Tustin Police Department and fire services provided by the Orange County Fire Authority. The rest is invested in essential city services like Public Works, Parks and Recreation, Community Development, and General City Operations, all of which help keep testing running smoothly and maintain the quality of life we value. General Fund Reserves Act as the City's Financial Safeguard, providing both stability and flexibility in times of economic uncertainty and unforeseen emergencies. Through prudent fiscal management and responsible long-term planning, the City of TUSDAN is projected to maintain reserve levels well above the City Council's minimum policy threshold of 15%. Even after accounting for anticipated expenditures. In Tustin, our budget is more than just dollars and cents. It's a commitment to strengthening our neighborhoods, enhancing infrastructure, ensuring public safety, and shaping a brighter future. Through thoughtful planning and collaboration, we are building a more vibrant, resilient community that's ready to grow and thrive. We invite you to be a part of this important conversation. Join us for the 2025's 2027 biennial budget workshop in the City Council Chamber or participate online. Good evening, Mayor and Council and the Colbert Gnart Assistant City Manager. Thank you for your time tonight and all the help that you have put in with staff as we've developed the materials and the numbers for tonight's presentation. I want to start with the PowerPoint, the agenda. If City Clerk's Office could indulge me, thank you so much. OK. Well, too loud. Better? Thank you. OK, so we're going to get started. I'm going to go over the agenda here. I thought I was going to be able to control this from here. Anyone? Here. Thank you. I've been here for a while, but it's my first time running a presentation from this seat. In case anyone is wondering, it's true. So the agenda I wanted to lay out is just kind of the scope of the conversation for tonight's workshop. So you'll see the last item is the workshop discussion. Please feel free to ask questions along the way though. Each of the items listed on here is kind of the topics that help create the whole budget picture. And so we're going to go through each of those, and then hopefully that'll be the content that'll help the council have a nice dialogue about next steps. This button. Excellent. Okay, so we're gonna start with the fiscal sustainability strategy. It is a 10 year plan, as the city manager mentioned. The idea here is to achieve Council's goal of annually aligning ongoing revenues with ongoing expenses. And so we've kind of taken a step back, zoomed out, and acknowledged that we're gonna have a few years in the next 10 year period, where that's gonna be difficult to achieve. And so we've identified this as the goal, and we think that we can actually reach that goal within the next 10 years. We're going to have to pull on these objectives, though, very carefully along the way to increase the ongoing general fund revenues, and the Council has already kicked off efforts that will support that by authorizing the property offerings within legacy and outside of legacy to create an ongoing revenue source of property taxes and tax revenue from sales and permits. The second thing is decreasing the ongoing general fund expenses. So this is really tied to achievement of our unfunded accrued liability paydown plan. And once those obligations on the general fund go away, it's much easier to align the ongoing revenue and expenses. And so we'll demonstrate that in later slides, how that works. And then third is utilizing our existing bucket of one-time revenues that the city has already received and are on standby for use. Drawing on those to keep the minimum general fund reserve levels continue to pay down the unfunded pension liabilities and then continue to operate programs at the existing service levels. I'm going to keep going. Pushing the right button. Okay, so projected new revenue, which is not included in the budget numbers right now, is a really important piece to just kind of keep in the back of our mind. So there's five projects that the Council has recently authorized to go out to market. We have the estimated closing dates because these things do take time and so we're trying to acknowledge that they're on the horizon, but we don't have certainty about the dollar amounts that will be coming in or exactly when the money will reach the city. So let's over about 130 acres there that we're talking about in play. And these will be a potential replenishment to the general fund reserves, as well as generating ongoing revenue from the sales tax, property tax, and permit fees. And then the pension pay down plans. This is an important part of the how we get to the alignment of the revenues and the expenses. And so we do have a total balance of 78 million and funded liability. It's projected to be paid off by 2036, which coincidentally is about 10 years from now. And so this next slide, this graph here identifies the payments that we're talking about. It's the purple bar that we're talking about. Once the purple bar goes away, it's much easier to align the ongoing revenues with the ongoing expenses and reach that balance that the council has been asking for staff to deliver. As we've gone through our preparations to put together the materials for tonight, we've had conversations internally. Briefings with council members, you know, it became very important that we added funding in this proposed first year of the budget that would allow for us to do a new analysis of what our pay down options are for our pension. So that we can update this when we come back in February and council will have information to decide do we want to continue. down options are for our pension. So that we can update this when we come back in February and the council will have information to decide do we want to continue on the plan that we're on. The way that purple bar is falling on the graph over the next 10 years or is there another way whether we stretch it out or we do some sort of a lump sum or a different combination of payments. So we're going to kick that off and then we'll be bringing back the information. And now I'm going to share with you the options essentially that we've kind of bookended. In the staff reported, explained that option one here for General Fund and option two are really bookends. They're trying to illustrate different scenarios. So the first option draws down on general fund reserve levels to fund the non-recurring items that are listed there. And by doing that, then we pull from Lancel proceeds to create the 15%, very minimally. The other option, option two, saves the general fund reserve level at a very high 27%, but then uses Lancel proceeds to fund the non-recurring items that are listed there. So this is one way of looking at it. The options, the items that are being requested are the same for both option one and option two. And you've got your, and this is, take a step back here and just identify. We've sort of restructured the way that we're presenting the information to identify the ongoing revenues and ongoing expenses separately from the non-recurring items. And first question for the council is, is there direction to staff to actually move forward with funding the items that are in the non-recurring section? Once the consensus is made that yes, proceed with those items and those are vetted by staff and determined to be appropriate for the years that they're being requested in. Then it's just a matter of what the funding source is to move forward with those items. I'm gonna move to year two. We can always come back to these later if needed. So similar set up here with option 1 and option 2 being bookends of a spectrum. Option 1, again, is keeping general fund at 15%. Option 2 has the higher reserve level. The difference between year 1 and year 2 that's notable is that even in option one here, Lancel proceeds will need to provide $6 million to general fund in order to maintain the 15% reserve level. Since the fund balance was dropped in year one, it means the extra support in year two to stay at 15%. And then you can see the corresponding difference of where Lancel proceeds fund balance in option one is either 64 million or higher in option two at 59 million. I'm gonna keep going. One of the questions that we discussed internally and in briefings was, can Lancel proceeds fund sustain this assistance to general fund? And what does that look like over the 10 years? You were adopting a two year budget, but the fiscal strategy is for 10 years. So how is this actually going to work out? So this graph here is identifying which years and what amounts landfill proceed would contribute to general fund. And so this is budget option one where the first year was a very small amount, about 230,000 and then the next year as closer to 18 million. The blue line on the graph is the city's reserve level. So when Lancel proceeds, contributes, and those amounts, the reserve level is able to stay at 15% or greater. The red bar across is the 15% minimum reserve level. So you can see over the 10 year period, and this is actually a 15 year graph, so for 10 years it's a struggle. And that's while we're paying off those UAL payments, the purple bar graph. When those payments go away, low and behold, the reserve levels can sustain themselves, and we go back up to the 15, 20, 25, 30 percent levels without needing to take additional funds from Lancel proceeds. I'm going to go to the next slide, which provides the actual dollar amounts for the years and what the use of the Lancel proceeds would be going towards. And so you can see it's got the required per's UAL. And then for the first two years of the budget, 25, 26, 26, 27, it has those non-recurring items that are being requested as well. And I'm going to go to the next one, which this is budget option two. It's very similar, but you can see in the first year and the second year in particular, the funding is different. Again, there's a couple years in the 10-year period where we don't anticipate needing any landfill proceeds to maintain the 15 percent. But again, the trend starts going up after those UAL payments conclude. And again, here is the table with the detailed number. So option one total was about 68 million, the far right bottom number. And then in this option two, it's about 69 million total. So slight difference. Going to keep going. This is where I'm going to hand it off to Jennifer to do revenue and expense over the bill. Thank you, Nicole. And good evening, Council. Thank you for the opportunity to dive into a little more detail on the general funds revenue and expenses. As mentioned in the budget 101 video earlier, the general fund is the heart of the city's operation. It covers most of the municipal services we provide to residents and businesses. So jumping into the general fund, we start with the general fund's revenues. And on this slide, there are two years of revenue are all presented in one table and with the variance columns in between. And they are year one and year two about it. And Nicole had mentioned that we structured this a little differently, would put all the recurring items up front and then non-recurring items at the bottom. So as you can see on this table, the recurring item, recurring revenues will increase in consistently. It's an increase of 3 million in year one and 2.8 million in year two. And what makes the difference is in our non-recurring items. And so because some of the non-recurring items are going away, and therefore we have a slight decrease actually in net revenue in year one. And then it's going up in year two. And on this table is just a breakdown of some of the major revenue categories and what staff is projecting, the increase or decrease trend, and based on what we see and best information we have. And property tax and sales tax in combination, it makes up about 65 to 70% of the general funds revenue. And we are still seeing increases in both categories, although some of them a little smaller, a little minor, compared to previous years. And jumping into expenditures, this is year one of the general funds expenditure under two budget options that Nicco mentioned earlier. And again, we broke this out in the recurring section as well as the non-recurring section. Under option one, in year one, the general fund will absorb the most expenditures at $109 million and that includes all the non-recurring items. In option two is where the land cell proceeds will pick up some of the non-recurring items therefore offsetting reducing the general funds outflow. And this is a look of year 2 of the general funds expenditure on the same options. And in this table, the total expenditures, you can see if flips. So on the option one, you will actually have less. It has less expenditure than option two. And again, in the same format, and here's a table that outlines a major difference in increases and decreases amount of different expenditure categories. And for the, for new positions in 2526, there's requests for one new position, and that is funded from restrictive funding source. That's not funded from General Fund. In year two, there are four positions requested and they are from the General Fund. And just, we presented this table before in previous presentations and this is just a look of the police department's headcount over the last 12 years plus the next two proposed years. And in the proposed years, and there's one increase, one increase in the non-swarm personnel and there's one increase in non-swarm in year two and two in the swarm personnel. We like to bring a summary of the capital improvement program for this fortenized presentation and this covers both years. And so to start with the CIP, this pie chart shows the funding source of the current year one of CIP. The total CIP dollar is proposed at 58 million. And it's funding from a variety of sources. And some of them stay in county allocations, some of them also like enterprise fees. And some of them impact, such as the backbone, legacy backbone infrastructures. And so this gives you a quick overview of how the CIPs are funded in year one. And we can, the next two slides, we'll have more on those CIPs by specific categories. And we are looking to, we're proposing to fund facility projects and park projects. And we are also proposing to fund street traffic and water projects in year one. Just as just for note that what we are proposing what staff is proposing here is just the budget appropriation and for any contracts over $200,000 under the city's updated municipal code will bring it back to the council individually for approval. This is the same format in year two. And the second year CIP total 32 million. And we also have some projects here that's listed as I'm funded. Those are staff is we need to include those in the budget document in order to apply grants. So here the next two slides are more details on year two's CIP. It's structured in the same way. Still have public facilities. There's always some kind of public facility projects that we keep up with the building maintenance. And there's always park projects that we constantly update our parks and for our residents. And streets and traffic as well as water. And that and last but not least this is the legacy CIP project. This is funded only funded from the Lensel Proceeds Fund for the next two years. And those dollar amount here, 22 million in year one and a million in year two, with the tables you saw earlier under the budget options for the land cell proceeds fund. With that and I would like to turn it back to Nicole and Thanks Jennifer. I'm just going to bring this slide up. These are the two items that we are looking for direction on the fiscal sustainability strategy as a concept and a policy. And then also the specific options or considerations that the council would like us to bring forward in June for the budget adoption. Thank you for the presentation. I imagine we're gonna want to flip back to some of those slides, so hopefully you figured out the navigation button there or somebody else can help us. I'm just gonna start with a couple comments that I'll turn it over to my colleagues for input questions and for the discussion, but terminology matters to me a whole lot and we're starting to use the phrase strategy, which I think is much better than just a budget adoption. We're looking into the future knowing that we have this tremendous unfunded pension liability and a huge lift for the build out of the Tussle Legacy. I think it's important that we look and craft a strategy that will get us there, you know, aiming at the end of that project and ending at the end of paying down the pension liability. So I appreciate staff framing the presentation, the discussion, those terms. And I think this, you know, this two-year biennial budget adoption is going going to be part of that strategy potentially but we still need to make sure that we are tracking against an adopted strategy which I think we're getting there but we're not quite there yet we've got some more inputs that we need which I think will include the use of cash on hand how do we pay down our pension liability do we have lump sums do we land sale proceeds? And then what does that mean for the legacy build out? If we make a, I'm just throwing a number out there, if we make a $30 million lump sum payment on the unfunded pension liability, we then necessarily don't have those, the, then necessarily don't have those funds available in land sale proceeds. So then do we have to bond or to get a different financing? Why am I getting so much feedback? Is that better? Hopefully. Yeah. to get a different financing. Why am I getting so much feedback? Is that better? Hopefully. Yeah, okay, thanks. So like I said, I appreciate, am I not on at all now? I can yell. So I appreciate staff sort of touching on the overall strategy to tenure strategy and likely be a little longer than that. Hopefully we're done with the legacy to build out in 10 years. That's a lofty goal, but I think that project and those expenses coinciding with a paydown of our pension liability is a very positive picture for For the city of Tusson so when you look at $78 million on funded pension liability We've got the hangar fire expenses which are not included in this, but you know tens of millions of dollars that we're getting reimbursed for Those numbers are scary, but when we look at the legacy land sale Revenue that we can expect and other additional city owned properties specific centeries for memorial I think the overall picture is actually quite positive so Just kind of wanted to level set that and open it up for the discussion. We're supposed to go first, Council Member Garner. All right. I'm going to repeat some of that, but I want to say it because we've been talking about this for a long time. Just for context for anyone that hasn't been sort of tracking this over the last, since I've been on Council for the last four or five years, is this is a foundational step. This is a huge step for the fiscal sustainability strategy. It was a great goal in the past to say we want to pay down our unfunded liability, but not to know what it does to our fiscal capacity. I think it was difficult as a council member each year approving budgets that pulled from land sale proceeds to cover this gap. And so we've been asking this for a few years, and I think this is a huge step for being able to look 10 years out and see what the impact is. So I'm so appreciative that we are taking this step, and I support what we're doing. The only comment I would add is that we're not done yet, right? And that this will continue to advance. And I think the funding for the analysis on how, what our options are is going to be another step that supports our decision making on what to do with those funds. But I think the other piece that maybe comes, if not next year, the year after, is, at the end of the day, we're pulling this money to the tune of $60, $70 million from land sale proceeds. At some point, we are going to need to be able to say, this is how much money we're going to have, and we're done with the legacy. And then this is how we plan as a community to spend it. So that when we do make these decisions, yes, we're pulling $10 million, $20 million, $50 million from there. of making that decision in a vacuum, whether yes, we support these things or no we don't, we start to compare it to what did we already say we wanted. And so we're not there yet, and I think the culmination... from there instead of making that decision in a vacuum, whether yes, we support these things or no we don't, we start to compare it to what did we already say we wanted. And so we're not there yet. And I think the culmination of the outreach effort could be perfect because we're going to finish this year long effort. We're going to know what the community wants. We can develop our financial model for the base, understand what the money is, align those two things, and then have this fiscal strategy. So I think we are gonna continue to advance. So I just wanna make sure we don't take our foot off the pedal. I know you guys aren't, but I just wanna just kind of double down on that. And to the... two things and then have this fiscal strategy. So I think we are going to continue to advance. So I just want to make sure we don't take our foot off the pedal. I know you guys aren't, but I just want to just kind of double down on that. And to the question of number one and two, just to answer this directly, I support number one. And as far as the question number two, this discussion, I would support the year, I'm sorry, the option one approach, it says you're one at you. The option one approach, which is pulling more from the general fund, just because I think we can still remain above the 15%. If we need to adjust after year one, let's do it. But we shouldn't be coming. In my view, we shouldn't be coming right out of the gate, pulling from land sale proceeds. If we can make it work from the general fund. And then the only other piece I would just add in there is that, and if we go with option one, this doesn't matter because we're pulling it from the general fund. But the only other piece I would just add in there is that, and if we go with option one, this doesn't matter because we're pulling it from the general fund. But the only item on that list that I question would be, not the need for it, but how we're funding is the temporary homeless shelter. That as a, the other of those items on that list are, I support them and they make sense as a one time expense. But the homeless shelter I do think should come from the General Fund and not lend sale proceeds. But again, if we go with option one, it's sort of a non-issue. So that would address those two. Mr. Mayor. Just have a technical question. As far as pulling from reserves in general fund or pulling from land sales, how fluid is that transfer process between those two funds? Can it go back and forth? Is it legally? How would that go? Are there any restrictions going one way or the other? I'll give a quick answer, followed by all of my friends. We can adjust, we plan to adjust. That's why we have a mid-year budget process where we look and see where we are compared to our projections, what's been realized, what is anticipated, but the new anticipated numbers are. So at a minimum, we can adjust in February and it's as simple as getting council direction to change course or modify things. But I'm happy to have Jennifer. There's no legal restriction from doing fund transfer between the two. That's correct. There are restrictions on the backbone fees. That's a designated fund and can only be used for limited purposes. Lensale proceeds is a separate fund that can be used interchangeably. Okay. Maybe put a finer point on it if I may Mr. Mayor Pratton. So we can transfer back funds from the general fund of Lensale proceeds account as long as we've been tracking those funds. Because we can't just take general fund dollars and plug them into the landfill proceeds account, you know, laterally, right? That's basically what I was asking. As long as they're still used for city purposes, they could even go that way, but I don't anticipate the need for funds to flow that direction. Okay. So really, we're just talking on which bucket we were on it. We want to work with. Okay. All right. So, you know, just my thoughts on this is that, you know, we have a reserve is kind of a emergency reserve. And, you know, we've seen, unfortunately, over the last few years, some situations that have occurred that might use that. So I get very nervous when that reserve pulls down close to 15%. My previous history was we try to keep as a council close to 20%. So that's my only concern. I know it's, you know know six and one a little bit half dozen the other a little bit because we're just talking about buckets and you know we can probably move that one way together to adjust when we need to adjust. So so I know I think it's a huge deal but I think that we need to to keep an eye on that as well. Councillor Schell. Nicole, staff, thank you very much for this presentation. I do agree that looking at a retainer horizon gives us a very strategic approach to understand where we can move money around and ensure that we're delivering the services that we need to deliver towards the residents but also ensure that we're hitting the goals that we've set, especially in extracting the value out of the touch and legacy. Question I have for Councilman Gallagher. Can you bring up the slide? Councilman Gallagher said that he would, I guess, approve or look to approve option one. Yeah, you prefer. Yes, it's option one. I just wanted to take a look at that. We'll look at that in a little bit. Sorry Nicole. You're testing my skills. Okay. This one or something was the one that the other one. The other one. Yeah, these managers and the. I got excited when I saw year one. It was. Doing great. there. We're going to have one with the four columns on it. Yeah. Here we go. Okay, right here. Okay. I'm pretty sure this is it. Okay, perfect. So, so Council Member Gallagher, you would go, your preference would be for General Fund 1 and then funding the non-recurring items out of the General Fund reserves or out of the land proceeds sales. Yeah, so option one would fund those, you can see in that first column, that would come out of the general fund and it would draw that down. And you can see with option two, pulling straight out of land sale proceeds and it keeps our reserves at 27%, which is, and Director, or Councillor Moreneilson, made a good point, it doesn't really matter. It's, they're just buckets, but in my sense, as much as we can avoid going to the land sale proceeds, because it becomes too easy, and until we can define how much money is actually there, and how much we can spend, I don't think we're there yet. I think there's some level of comfort now. But until we get to that point, my preference would be just go to General Fund so that we continue to maintain fiscal. Just to kind of follow up on both here's just Poff Day technical question, which is as far as our reserve and everything and looking at our financial picture in total, which is better for a bond, which is better for financial ratings. And when we're looking at bond ratings and everything else, when reviewers are looking at us, which is the better way to go financially, externally? So in general, in the eyes of the people, Of course, they'd like for you to have more in reserve. And it's a cushion. However, the general fund, the city, doesn't have any bond obligations. The water enterprise has bond obligations, but that's only based on the water enterprises performance. Right. What I was saying is once the, you know, the different organizations take a look at us, they're looking more at what we have as general fund reserves. Absolutely. They really don't look at potential, you know, land sales. So if I may, in terms of issuing audit at financials, the general fund the one we call general fund combines with the land sales. So in the eyes of the standards. Yes, they are combined. Okay. Look at available cash. Okay. Yeah. So I mean, look, we're very fortunate and then Tuss and have the Tuss and Legacy again and the whole thing we've been trying to do over the last couple of years, and now with all of being on board, is trying to find ways that we can accelerate the development of the legacy and extract that value, and take those revenues and then, you know, contribute those back to the residents of TUSS. So, conceptually, I agree with you, Councilman Gallagher, about trying to keep any ongoing operational expenditures paid for the general fund based on those revenues. With land sale proceeds, we definitely take a dip in the value of the price of the land. But I think as time moves forward in the economy gets better, I think the price per acre will eventually go up. And I think we're going to potentially generate more value from the landfill proceeds. As we go forward over the 10 year horizon, so it's going to be less concerned if we have to on a one off basis, poll funds out of the landfill proceeds to fund general fund. To clarify, option one still pulls from landfill proceeds. It just doesn't do it until year two. So both of them pull. I just, number one, starts with a more conservative. Right, I think the numbers that they use were actually pretty conservative. And again, I'd prefer to use conservative calculations. But again, I think, as we go through 10 years, that the value of land is gonna go up, which means that land sale proceeds hopefully will also go up as as well. Thank you. Thank you. Councillor Faker. Thanks. Thank you, Mayor. I've got a couple of questions. And actually the first thing is directed to Council Member Gallagher because you said something that I didn't quite follow but I think it was good but I wanted to hopefully you could explain. You said when we get to the end of this process and we know where after we've spent $60,70 $70 million and then we can sort of align what we spend the land sale proceeds with. I didn't quite catch all of that, so I'm hoping you could repeat that, because I, so the land set based on that graph, we saw what was the number 60, how much we pulling from land sale proceeds? Correct, 60 in the first year, 69 in the second year. Okay, I mean over the 10-year period we're pulling a total amount of 68 million. Yeah, 68 million. Okay, so 68 million we're going to pull from land sale proceeds. That is not all the money we will have when we are done developing the base. So we have 400 acres left. We have, let's just say that generates just for round numbers, $500 million. We have to spend, you know, 350 for infrastructure and other projects. We have some delta there. Let's say it's 150. Well, if we knew today it was 150. $350,000,000. We have to spend, you know, 350 for infrastructure and other projects. We have some delta there. Let's say it's 150. Well, if we knew today it was 150 spending 70 million on this, okay, that makes sense. But at some point, this goes to the slippery slope, which is why I don't want to keep pulling from surplus land, from the land sale proceeds. At some point, we have to start comparing to what are we not doing because we are doing this. And so the point that I was trying to make is let's finish the outreach effort. Let's finish out. Try to... At some point, we have to start comparing to what are we not doing because we are doing this. And so the point that I was trying to make is let's finish the outreach effort. Let's finish out, try to round out how much money we're going to have left, and it's always going to be a guess. But let's try to round it out a little bit more and then decide as a community how we're going to spend that. we're making a decision on how we're going to spend it, but we can always undo that in five years. So, this is not my point. Yeah, no, I appreciate that. And that does make sense. And so that makes a lot of sense to me. So I like that approach. So I like what you're saying. I want to echo what the mayor said. And I've told some staff this, that this is, the picture is incomplete. It's a strategy, but we're getting there. And so I do appreciate that. I do like what you're saying about figuring out what that number is because that's going to, you know, ultimately. there and so I do appreciate that. I do like what you're saying about figuring out what that number is because that's going to, you know, ultimately each of these strategies to balance our numbers for now requires pulling from land sale proceeds. So our goal is to get it so that we've got it in balance so that that delta, you know, that difference ultimately is spent on some sort of capital one time projects that, you know, will ultimately improve the city. So that makes sense. I think the way that it's calculated as well, there's about an extra million dollars of the $68 or $69 that end up being, there's a million dollars less that we take from the land sale funds under option one. So that's probably good because I agree with what you're saying. Let's make sure we even that out. That being said, we're you know either of these approaches is sort of you know taking from one or the other. So I'm very amenable to everybody but I I agree with what you're saying if everybody was you know viewing that differently. I want to say that I think that the real options are what we're doing with these capital projects and there's a bunch that are sort of those one-time numbers which I think are probably pretty good projects. I've talked to the chief about some of these and so I think these are good projects. I think it's important that we over time do what I think City Manager has talked about is make sure that with like the mobile computers and these equipment renewals that we budget try to keep these on ongoing a budget. And I think that's the plan. My question, I have a couple of questions I wanted to check. Oh, but on that note, the real options are really come with the decisions that we've made, like on the MOUs for employees associations on the new positions that we're added mid-year. Those are important, but also the capital projects that we fund every year. I'd love to see what we're not funding, what we haven't approved, what's, you know, the good ideas that are in the pipeline. And I think that's maybe part of what you're saying, Council Member Gallagher, is what are we not doing? So there's certainly some ideas that staff and residents have for things that we would like to do that are capital projects that haven't yet been put into the mix. And so I'd like to see us think about those as we do this. I don't see this happening in this cycle, but as we go forward when we're back here next year. Council Member Pringles, on that point, specifically the actual budget adoption item will will have a seven year CIP program at the back end of it that identifies projects that we're doing in this by any budget that we're appropriating for this by any budget. But then you'll have the years three through seven identified. It won't show you what we're not doing, but it will show you what we're planning. Right. Okay, good. Thank you. I did have one. I did have I Did have one the other thing I'll notice I hope that these revenues stick Because I'm worried about the state of the the national economy and I had a specific question about that Ultimately we can balance that out because you know by pulling more than land sale funds But one of the things in here I think it's slide 24, talked about new positions. And so just as a technical question, when we adopt the budget, those new positions in fiscal year 26, 27, when we adopt the budget this year, that doesn't authorize them at this point, we'll come back and actually authorize them in that process. Okay, so we'll probably, hopefully everything's fine and we move forward and we're on plan with that, but that's another place where there's some adjustment to be made if it comes to it. I wanted to ask just a couple of other things, these are very small things and I mentioned it to staff, but I wanna mention it to the council, because I think, well, one is, I'm also very happy about the plans for doing something to figure out what to do with the UAL, and I think what the mayor said about that is important, because we do have to figure out whether we're gonna put a bunch of money into it now, or sort of spread those services out. I've been sort of critical about front loading that, but we do have one time money, but it's important to know because at some point we've got to either pay or serve and we've got a little bit about that. So I'm looking forward to that. The other two things is these are really small items, but I was hoping, and I've mentioned them to staff, I was hoping that other council members would note this. I know the Test and Historical Society has talked about doing something with the control tower and trying to put some money aside. This is very small dollars into looking into the status of the control tower. I'm hoping we can, in our process, put a little bit of money aside so that we can do that. And the other thing, and I've talked to staff about this, is do something where we're tracking the various requests that come in all throughout the city, maybe a general information line, general request number. And in the vein of a CRM, so that's something that when requests come in, whether it's the council, whether it's the staff. One of the challenges is you don't necessarily know whether you're supposed to go to planning, or to go to parks, or you might have a couple of places. And I know that people will say, call the police department about it. It's usually the wrong place to call, but it's the easiest place to call. So something about that. So I'd like to see that included. But otherwise, I appreciate everything in there, And thanks for those clarifications. Thank you. One more. Yeah. I just wanted to see that, but I appreciate everything in there and thanks for those clarifications. Thank you. One more. Yeah. I just wanted to comment on council member Schnell's comments as far as you know, the appreciating land value over time of land sale proceeds. So I think that creates a little bit of a different image. And gives me tending towards a higher general fund reserve than normally. And you know, Councilor Gallagher, I understand your penchant for not wanting to always dip in the cookie jar. And you know, it's very tempting to do that absolutely but I think with the appreciating value I think that kind of changes the look for me frankly. So these are bookends it doesn't need to be option one or two I think you said historically 20% was a target for yeah we can we can look to you know around a little bit. Yeah, because it doesn't matter. Yes, so it really doesn't. But obviously option two is the far end of the spectrum. So I think if you're on the fence, we would get it closer to. If we move it closer to 20, that's not a problem may. So, falling up in that discussion, I mean, essentially, the reserve percentage is a policy just decision by this council. Reforction it to have buckets of funds that we can pull from. But if it's 15% or if we want to say it's 20%, I mean, the math is pretty simple. We've got a generally speaking rounding $100 million budget. It's about $1 million per percent in the reserve fund, right? So if we want to get from 15 to 20, we're gonna shift about $4.5 million from land sale proceeds to get there. So I think those are, you know, pretty practical ways that we can look at it. And I think maybe perhaps that's something that we can bring back for June is, I think 20% is something that, and we've talked about as a council in the past. I didn't wanna bring up, unless I say you got another comment, do you have a comment on this slide, or can I? Yeah, specifically, because I asked about this, and I had some concerns, and I think that staff said that there's a GFAO guideline as to best practices, which is like two months worth of expenditures, so 16 point something. And maybe that's a good place to land on that. It's a little bit above where we are a little bit lower than what Council Member Nielsen's talking about. Okay, so just sort of synthesizing what I've heard. I haven't heard of you, but I have an issue. This is for staff too, with the line items listed on this slide as the one time expenses. It's just really how we're gonna pay for them. That's important to note. Can we bring it forward on? I don't remember what slide it is, but it might be slide 16 and we're 18. Those are the unfunded pension liability numbers. And this is something I brought up during briefings and just for the benefit of the council members if you didn't talk about the specifics you wanted to clarify something for us. Either one works, it doesn't matter. Not the purple bar. actually breaks out how much we're lending from, it was 16 or 18, I might have said 17, 16 or 18. Which I think is the, there you go. Okay, so this slide here, which is budget option two, my point though is that this slide shows a $69 million expense from the land sale proceeds to pay down our unfunded pension liability. The number in the beginning of the presentation says $78 million in unfunded pension liability. So the difference between these as explained to me during briefings by Director King was we have a trust account that is funded. So once we get to this point where we've spent $68 or $69 million, the trust account will pay for the remainder of the unfunded attention liability. So just that confused me at first. Why was it 78 on one spot in 69 in another? It's actually 61. The 69 includes all those other police one time. Sure, sure. So we've got, we have a strategy for that back in there to get us funded. Of course, this all relies on 7% returns from CalPERS, which we know historically is not necessarily what we get. Roughly 6.8%. 6.8% so we could have some vague years and we'll have to lend more or we could have some good years and lend less. But these are assumptions on this. And then just for anybody that's watching this now or in the future, because I don't see any residents, really in the audience, I see a If they're zooming. If they're zooming, you know, we had extensive briefings each one of us with staff over the last month going into the details of this, you know, for the workshop. And I appreciate staff really digging in and answering our questions. This presentation and the discussion may seem sort of concise or short from outside of of perspective, but we've had extensive conversations, not together, but individually with staff. And I just appreciate all the work that's gone into fine tuning the information for us. I've heard general consensus. I think for option one, although we're not voting on that tonight, I think it would be helpful for staff to sort of lean toward what we're looking at. And so it's either option one or perhaps option one with some more pulled over from land sales to get closer to 20%. Is that just? Just want to say that out loud. Yeah. OK. So further comments, questions? We need to make a motion. One last question. I'm sorry I didn't ask this earlier. But I just assumed that the land sale proceeds in the general fund are those in accounts that generally make the same return. Yes. They received the same investment return because the other city's funds is poor in one pool. Okay. All right. Makes this decision even less important. All right. Thank you. I feel at times I'm at a baseball game and there's a baseball under three hats that are circling on a screen. We know the money's there, but it's just which hat do you want to lift up? Okay. So do I have a motion for, we have to give staff direction generally to bring back these options plus that third middle option analysis. I'll make that motion. I do have a second. Any further discussion? I'm going to say to City Clerk Roll call please. Council Member Pink. Council Member Schnell. Council Member Galagher. Mayor Portemnielson. Mayor Lumber. Motion passes 5-0. Thank you. That concludes our budget workshop. We will now move on to the closed session update, Mr. City Attorney. Yes, the City Council will be convening a closed session to discuss items 4 and 5 as they appear on the closed session agenda at the end of the special meeting agenda. Thank you, sir. We'll recess the closed session Good evening everyone I'm going to call to order the regular meeting of the City Council in the Tusson Public Financing Authority at 6 p.m. Meeting number 3078. Tonight's invocations by Father Michael Kong from St. Cecilia Church. Father? We accept my sincere apology that I did not sow up two months ago. I have an emergency call as a OC Lobo. I'm sincere to apologize everyone. Let it pray. Loving God. We thank you for the gift of this day and for the opportunity to come together in serve it to the people of City of Tussing. We recognize the responsibility placed upon our City leaders and we ask for your grace, wisdom, to guide their thought, words and actions. This our mail, Council members, city staff, and all gathered here, render them clarity in their decursions, fairness in their decision, and courage to lead with the integrity and vision. May this meeting be more than routine, May it be moment where trust is shunned. Collaboration is deep in and solution are found that promote justice and the well-being of every resident in our community. We ask this through Christ Christ, I will not amann. And in Father's Son and Holy Spirit. Amen. Thank you, Father. You are most welcome. We know that you are in our prayers. And we will put all of you, city, a person in our prayer of the faithful from beginning this quick again. Thank you very much. God bless you. That means a lot. Thank you. The Pledge of Allegiance, but tonight is by Council Member Schnell. Interview hard. If you serve the military, you're welcome to render a salute. Please flag begin. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation and regard indivis the visible liberty and justice for all. Thank you, Council Member Stone. Next we have public input. At this time any member of the public may address the council on matters which are not on this evening's agenda. Provided the matters within the subject matter jurisdiction of the City Council. If any members of the public are participating through Zoom wish to address the council please your hand. And if you're calling in, please press star nine to raise your hand. Madam City Clerk, any requests to speak? No, Mr. Mayor. Anybody in person? Okay, we'll move to the close session report, Mr. City Attorney. The City Council approved a settlement agreement in the item identified for the pending litigation. other than that, there was no reportable action. Thank you. Next we have our consent calendar. Items 1 through 11. All matters listed under the consent calendar are considered to be routine and will be enacted by one motion without discussion. Public input for the consent calendar. If any members of the public wish to address the council, please submit a request to speak for them if you have not already. And if any members of the public are participating through Zoom, wish to address the council please submit a request to speak form if you have not already And if any members of the public are participating through zoom wish to address the council on items 1 through 11 please raise your hand Adam City clerk the request to speak on the consent calendar. No, Mr Thank you. I have one request to poll item 7 by council member fink. Do we have any other request to poll items from the council? No motion for the balance Move the balance. Motion and a second by Gallagher and Fink. Madam City Clerk, roll call please. Council Member Fink. Aye. Council Member Schnell. Aye. Council Member Gallagher. Mayor Perters and Nielsen. Yes. Mayor Lumber. Aye. Thank you. Motion passes 5-0. Item number 7 is City Council Consideration of Rufle to release a competitive offering for approximately 52 acres of city owned real property within neighborhood E planning areas 9 through 12 of the test and legacy specific land council member. Thank you mayor and this one there's several items that are on the agenda that we just adopted and I just wanted to highlight this as one of them as part of the efforts to move forward at test and legacy as part of a lot of a lot of the budget discussion as well. So I just wanted to make sure we had a chance to discuss that with the public and make sure if there's anybody else who wanted to comment on what we're doing there and really pushing that forward that we just had a quick chance to discuss that with the public. As the mayor noted during our budget session, we've had briefings about all of these projects and all of these projects at various stages come to us before. So I just wanted to highlight that. We're trying to move with this all along. Appreciate that. Thank you to staff for moving these items forward. It allowed activity going on. Yeah. I just want to add, I want to thank the ad hoc committee, both mayor and council member Galg and staff for spending a lot of time to craft an offering. That I think is going to potentially add a lot of value to to touch the legacy into the residents. Looking forward to see responses we end up getting back from various developers, but to council member thinks comment. I mean, very excited about this offering going out and what we can actually bring to bear into in the Tussle Lakes I think it's gonna be very exciting so again thank you very much your time and time and efforts I'm gonna make a motion. I'll move to the item. I'll second it You for the discussion. No Madam City clerk roll call please. Council member pink. Hi. Council member Chanel. Hi, Council member Gallagher Hi mayor Perrotein Nielsen. Yes, mayor L Schnell. Aye. Council Member Gallagher. Aye. Mayor Perrotein Mielsen. Yes. Mayor Lumber. Aye. Motion passes 5-0. Thank you. Moving along, we have our public hearing item number 12 tonight. Public hearing and approval by the testing of financing authority in the City of Tesson has the legislative body for the community facilities districts. with the issuance of a special tax revenue refunding bonds and an amount not to exceed 63 million to refund the community facilities district 2014-1 which is the test and legacy standard-specific 2015 special tax bonds and I'm not going to read the rest of it because I think director King is going to give a presentation. So go ahead. I'm going to open the public hearing. Go ahead. Hello again Mayor Lumber. Mayor Prodame Nelson and Member of the City Council. And thank you for this opportunity to present to you tonight the CFD bond refunding item that we are the staff has been working on for the past couple months. This is just a brief overview of some of the areas I'd like to touch on tonight in tonight's presentation. And so usually a lot of people might not have an idea of what a bomb refunding is. So we'll touch a little bit on what is a bomb refunding and what kind of benefit a bomb refunding and Estimated savings the transaction will bring to the property owners within the districts and With any kind of refunding there is an estimate cost of issuance and We'll touch on that and we also will bring back recommendations that we rely to present for Council's consideration tonight and the final item will be what is the timeline for this transaction and public outreach that have been done and also in the plan. The bottom refunding is simply put, is refinancing the outstanding debt. So it's very similar to individuals refinancing their mortgage. And so the goal is to get better interest rates, so with a lower payment going forward. And so typically the community facility district right now, the bonds are being proposed to refund is to save property owner money. And it will be for what is the mechanism is basically issuing new bonds and lower borrowing costs and we can pass those savings. The property owners will realize the savings in their annual property tax bill and the refunding transaction will not extend the life of the bonds and the new obligations if approved will have the same maturity years as the original bonds. Which bonds from the CFDs are under consideration tonight and so they are two community facility this straight bond issu and one is for CFD 06-1. Those are the Columbus squares and Columbus Grove and they are 1,000 just under 1,300 homes and the other series is the 2014-1 CFD and that is for the testing legacy Greenwood area and that has 375 homes within this bond issuance. And together and what's what's on the slide showing is that the original issuance amounts as well as the outstanding balance as of the last after the the last death service payment. And for those bonds, they are scheduled to be paid off the final maturity years as it's going from 2037 to 2045. So this is a map of where those proposed bonds are being related to the CFDs. So the two blue areas are the CFD-06-1s. The blue area on top is the Columbus Square and the area to the right is the Columbus Grove. growth and the area in the middle, the green area is 2014-1. Just to illustrate where would a property owner locate how much of a special tax assessment related to that obligation, where they can find it on their property tax bill. And what we have on this slide is for 06-1 is this sample of the property tax bill on the left. And the highlighted line here is the special tax assessment from 2024 to 2025 property tax bill relates to the debt issuance. and the same example is showing for CFD 2014-1, the highlighted line is for the special tax assessment related to bonds. And those lines are expected to have adjustments if the refunding transaction is approved by the City Council. And they will go down. This is the latest estimate of the savings by property and per year and also over the life of respective bonds. just a no this is because the bond market conditions change and we won't know the final savings until the bond transaction is price. And that will take place sometime in the first week of June. And so far the savings is roughly at net present value is roughly about 6.2% over the previous obligations. And so therefore staff is still recommending this transaction to move forward. So with any refinancing of mortgage, there's always a cost. So the cost refinancing, the refunding costs will be paid from the new bond proceeds. So there will be no fiscal impacts to the city. It's not a city expense. And there will be no fiscal impacts to the property owners. And so the property owners will, the benefit that will have all the benefits without the cost. And there are two types of special tax assessments for each of those CFDs. So what's related to the bond obligation is special tax A. They will be adjusted. If the transaction is approved, it will be adjusted down. And special tax B is for city services and it will not be impacted by the refunding. As part of our public communication strategy, we staff meld our postcard to all affected property owners within those two districts. So this is the postcard that went to all the property owners letting them know that the proposed transaction and how they, if they have any comments, they want to provide any public input. They are more than, so those are the timelines and how they can provide that information. And continue on in terms of public communications. And we plan once the bond, the bonds are priced and we have a more definitive saving dollars for each individual property owners. A notice will be mailed out to individual property owners to let them know exactly how much they expect to save in the upcoming property tax bill. And the 25, 26 property tax bill will likely hit your mailbox probably by October 2025. And we also set up a dedicated email to receive any inquiries from property owners and this email has been included in all the print communications to property owners. It's also on the city's website. So the recommendation tonight is that for each CFD to approve the issuance of the respective bonds also in consolidation the test and financing authority to approve the issuance of the respective bonds, also in consolidation the test and financing authority to approve the issuance of the aggregated bonds. And wrapping up, so the next, what do we expect in the next in this transaction process? So after tonight's meeting, if the recommendations approve, staff will proceed with our team, our consulting team for the negotiation of bonds. And so the pricing will probably happen early June and you'll be close in June of 2025 next month. By August, we will be submitting new special tax A assessments to Orange County Tax Collector for the next year's tax roll. And on September 1st, we'll redeem the all bonds. With that, and happy to answer any questions. Thank you, Director King. I should have done this earlier, but Mr. City Attorney, can you opine on, because my Residences is impacted by this on just on the conflict there or the lack of conflict? Sure. Thank you, Lily. So CFD-06-01 only encompasses the villages of Columbus, and none of the property within the boundaries of that CFD, O6-01, are within a thousand feet of any of the real property owned by actually any of the five council members. So there's certainly no real property conflict test to that one. And as to the CFD 2014-01, although your properties are within a thousand feet of that area, you are both, the state of the United States is a very important part of the state of the United States. And so, the state of the United States is a very important part of the United States. And so, the state of the United States is a very important part of the United States. And so, the state of the United States is a very important part of the United States. And so, the state of the United States financial interest is deemed indistinguishable, if the official establishes that the decision establishes or adjusts assessments taxes that are applied equally proportionally or by the same percentage to your interest as to the general public. And in that situation, there is no conflict. And for that reason, you're all allowed to participate in decision making on that one one as well. Thank you and I just wanted to air on the side of transparency for anybody's watching council colleagues We ran the analysis and I just forgot to ask her there. So thank you director King for the presentation Do we have any questions for staff before I open the public comments section? Councilmember think Thank you, Mayor. I've got one question and I think it move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. I'll just move on. of the sale or is there some protection against that? I'm assuming there's something that keeps us from ending up with people paying more. But I just wanted to be sure I asked that question. Yeah, no, you're absolutely right. The city has a debt management policy that stipulates that any bond refunding will have to have at least 3% net present value savings before the transaction can move forward. Okay, thank you. I appreciate that. Thank you for the transaction can move forward. Okay, thank you. I appreciate that. Thank you for the question. Any additional questions? Okay, we'll open the public input portion for this item. If any members of the public wish to address the council, please submit a request to speak for them. And if you're participating through soon, please raise your hand. Madam City Clerk, any request to speak? No, Mr. Mayor. Anybody in person? Okay, we're gonna close the public hearing and bring it back to Council for discussion. I need further No, Mr. Mayor. Anybody in person? Okay, we're going to close the public hearing and bring it back to Council for discussion. Any further comments, questions or all in return of motion? Councilmember Galagher. Just want to thank staff for being proactive and identifying this. It's so often today that we're seeing our costs go up from utilities to other taxes and so it's refreshing to have our tax burden go down and then one of the things staff We're also the the letters that were sent out Appreciate us being not only proactive and communicating on the test and legacy and what we're doing there But also on our other efforts and I think this is a win for staff. It's a win for the city And so I'm glad that that was communicated out so just wanted to comment on that and and then stuff. That is a motion. Second. Second. Motion is second. Can I just say one thing? I appreciate that too. And I'm glad to see it. I just encourage folks who are the benefit beneficiaries of this donate half of that to your favorite tested nonprofit and then spend the rest inastin Summer. Additional discussion? Madam City Clerk, roll call please. Council Member Fink. Council Member Schnell. Aye. Council Member Gallagher. Mayor Per Temnielson. Yes. Mayor Lumberin. Aye, and I want to make a comment on the slide, carried before you take it down. So there's a VW Volkswagen Beetle in this slide. And in my family, I have five young children who, if they saw that they would yell slug bug and start punching each other. My wife recently implemented a hug bug rule so if you see one you have to get a hug not a slug. Thank you very much. Okay next we have other business uh ministry, Mr. City Manager do you have a report today? Thank you Mayor. I just wanted to announce our Public Works Department recently submitted $21.4 million in federal grant applications for key infrastructure and planning projects. And those projects include Red Hill Avenue Rehabilitation, Tusson Ranch Road pedestrian bridge, Janbury Road Rehabilitation, and a citywide active transportation plan. Those applications were submitted to the Southern California Association of Governments for their call for projects, and we should hear by the end of the year in terms of the status for grant submissions. That's what I have. Thank you, sir. Mr. City Attorney, do you have a report? Just a quick addition, I should have mentioned earlier that when the settlement agreement was unanimously approved in close session, the specifics of that settlement agreement will be disclosed publicly upon request once the settlement agreement is fined. Thank you. Okay, we'll bring it back to or up to the council for reports. Council member Fink. Thank you, Mayor. I just want to note on the City Manager's comment there about the various plans that are being submitted. And especially I'm glad to hear about the active transportation plan. We've been, I've talked with them several times, but that's great. I'm really really appreciate that the staff is moving that forward. I think that would be a great thing to have for our city so we can get that. Just a brief report on events. I along with several others attended that the meeting at the at the annex with the JPW communications about the future of test and legacy. And I want to compliment staff. Obviously the staff that was involved in planning it, but there were a whole lot of city staff from all sorts of departments there facilitating that, making that happen. I think that was a very good meeting and event and means of trying to solicit input and feedback. So I had a good chance to talk to a lot of people. There were a lot of other people there. And so I'm really looking forward to hearing what everybody said. But I think that too, so often, you think of government as having a, you know, we'll have a presentation and sort of stayed. That was the opposite of that. So I think it encouraged feedback and an input. It was pleased to attend both the double header of the Sunset Market and the Mayor's celebration on Thursday in Old Town. Had a chance to get a briefing last week with Chief Federer at the OCFA and Chief Deliz and the homeless team here in Tustin. So I really appreciated both of those. Was able to attend the lobster fest at Peppertree Park that the Rotary Club put on on Saturday. And so that was an excellent event bringing people together. Just a note from me, there's a meeting of the Library Advisory Board on Thursday that I'll be attending. We've been, the library in the city have been working to get a library vending machine to test in, which would be the first of his kind in the county. And unfortunately, that's on pause right now because we have to order it and the manufacturer has dramatically increased the prices due to the tariffs. So I'm hoping that as we've seen tariff relief on this, that hopefully that will restart here soon. So I'll report back more on that next week when I've got or two weeks from now when I've got more information. And also on Thursday and I think folks have seen this but the dedication or the groundbreaking the event for the new Western State College of Law Law School campus is happening on Thursday as well at 15101 Red Hill. So just south of Ed and Jure on Red Hill it's going to be really great to have a law school in the city of Tustin. There are less than 190 cities with ABA accredited law school. So you can add that to another feather in Tustin's cap. Thank you. Thank you. Council Member Schnell. Thank you Mayor, appreciate it. I'm glad we saw that picture up. So slug bug. In my family, my dog is an app 15 and 18. We did cheese on wheels. So we saw a yellow car. We wouldn't punch each other. We'd call that cheese on wheels. So very much past this family. So May 8th attended the Transportation Quarter Agency Board Meeting and we approved budgets for the year. Total expenditures we're looking at is $421 million of which 47 million was an early paydown of bond principle and then capital improvement projects for the 241-91 express connector, which is hopefully going to break ground. The end of this year, I'll take three years to get that done and hopefully alleviate'll alleviate some of the traffic that occurs backing up as you get from the 241 on to the 91. We're also doing a 73 cattle in a view improvement as well as a 241 Loma improvement on those toll roads. Also the TCA received a sustainability award for their cattle grazing program, which was designed to mitigate fire risks and also conserve some of the ecology and the natural grass and trees that are in there. So again, very proud that we received that award. May 15th, I also attended the Mayor's celebration and it was during the first sunset market really excited to see the energy that was out there. We could hear the bands playing, we could see families. I mean, really pretty amazing, and I wanted to actually notice Councilmember Gallagher's wife Morgan, as well as the mayor's wife Colleen, and then Erin Nelson from TCF, who spent a lot of time putting this event together. I think they raised like $12,000. I think that was not the amount of money that was raised. 31. How much? Oh, 31. Okay, 30 even better. So $31,000 to go back to good causes within Tustin. And then I also want to acknowledge that May 26th Memorial Day. I want to thank all the men and women who have served lost their lives. again a proud day also a bit of a sad day. My father passed last year. Come on. thank all the men and women who have served lost their lives. Again, a proud day, also a bit of a sad day. My father passed last year, and when I was a kid, I was used to confuse veterans day and memorial day. My dad would always say to me, he's like, well, don't wish me a happy memorial day, because I'm still here. So this is the first year my dad won't be around, and I will be thinking of my father on my day. So thank you. Thank you. Council Member Gallagher. Just two quick items. It's both been covered by it. It's. of my father on Monday. So thank you. Thank you. Council Member Gallagher. Just two quick items. I'd both been covered, but it's worth covering again, just on the legacy open house. Just very complimentary of the staff for taking the time and the energy to be there and be so engaged. The community really came out. I think the number was 130. The event was very well done. JB.W. did a great job in crafting an environment and experience that educated but also provided the opportunity to engage. And so it, it, it, uh, by all accounts, it was a successful event in the first of this process. And then the mayor's celebration just want to thank. I saw a lot of community members there. I saw staff there. It was a well attended. It was a good time. And, and most most importantly it raised a significant amount of money that's going to go right back into the community. In fact, I think the number that was raised, I heard it was the highest in the last at least five years, so hopefully next year will be even bigger. Thank you. Mayor Pro Temnielson. Thank you, Mr. Mayor. A few things here. On May 13th, I participated the Test Area Senior Center fund meeting and we decided to do a few maintenance items and spend some of the fund there and also to buy a brand new reception desk which seems that the senior volunteers are excited about. So that's all good. I initiated a little bit of a discussion on the future, thinking about expansion and some other alternatives that the council may want to look at down the road. So anyway, it was a good meeting and lots of good comments. And of course, May 15th attended the Mayor's events at Choc. And it was kind of an interesting event when you have the sunset market and the Mayor's event going on. So a lot of back and forth, but it was great. I always enjoy seeing my four folks I used to serve with. Mayor's Davorite Amonte. I did not serve with Mayor Coco, because he was in the 60s, but he was there. So that's all good. And of course our current mayor did a great job with the speech and talking with everybody and encouraging them to open up their wallets and donate for a good cause. So thank you, Mr. Mayor, for doing that. Looking forward to the PFAS plant dedication here with Orange County Water District on Thursday. Being a former water board member, those things are important to continue to have purified water for the city of Tuston and look forward to that very much. And I would encourage everyone to attend our city's Memorial Day event on the 26th and 90th Annemite Veterans Sports Park. I will be there and I hope to see you there as well. Thank you, Mr. Mayor, that's all I have. Thank you. Just a few events and activities on May 13th in the morning, I attended Sick More Magnum of the Academy and presented to four fourth grade classes, there are about 160 kids. I think that's about 150, 160. And this has never happened to me before, but the city provided water bottles and the kids wanted me to sign them. So I had a long line of water bottles that I'm signing with Sharpies and one child asked me to sign his shirt. And so if his parents are upset about that, the teacher gave me permission to do it. Later that night attended the Lexi Open House and hopefully the community saw the council and the city's commitment to having this discussion and the dialogue. It was the first of many meetings we're going to have and outreach efforts. I think the council members, their staff members, they were all committed to having transparent information exchange and as we go down this path of having these discussions and making decisions, we are committed to being open with the community and receiving feedback. So thank you to staff who put that on and to JPW. On the next day, on May 14th, chair the OCFA Budget and Finance Committee meeting, and among other things that we talked about was the budget that we were about to adopt this week at OCFA, but OCFA implemented what they call the snowball plan a few years back, and that was an accelerated paydown of unfunded pension liability, just like what we are doing. We just discussed tonight, but they are now, the organization has achieved almost 100% funding of its pension liability and has paid down a retiree medical expenses to it. So they're really seeing the light at the end of the tunnel and have freed up a lot of funds. And as we discussed during the workshop, looking forward to when our city is there in a few years as well. So I think it's important, but that's a model of success that has been seen by regional agency. And then on May 15th, attend the Tessin Community Foundation Mayor Celebration. Thank you to Aaron Nielsen and the committee for putting it on and Ed and Gabby Patrick for hosting us. That was a fun way to showcase old town for folks that were attending the event and also got to experience the sunset market and kind of show all the potential that we have as we do more down there. So, really appreciative of that. And earlier that day on May 15th, Aldo and myself and Janet Lomax, Commissioner Lomax attended the leadership tomorrow panel sessions in Newport Beach. if you're not aware, Costa Mesa, Irvine, Newport Beach and Tustin have for many years participated in an annual academy, essentially, where private residents and municipal employees can learn about government operations. And we haven't done it as much recently, but I've seen and I had a conversation on getting our staff more engaged moving forward is it's a nice way to talk with colleagues and kind of spitball and have some some friends in other cities so thank you for participating in your panel all the and with that let's just further comments we will adjourn this meeting and the next meeting is scheduled on Tuesday June 3rd 2025 for the closed session meeting at 4.30pm and the regular business meeting at 6pm. Thank you. Have a good night.