Meeting Information

• Date: September 16, 2024
• Title: Budget Committee Meeting
• Present: Rainville, Vetaw, Ellison, Osman, Cashman, Chavez, Chowdhury, Palmisano, Koski, Chughtai (Chair), Payne, Wonsley
• Absent: Jenkins (joined later)
• Guests: Deputy Chief Financial Officer Ra Chhoth
• Votes: 2

Highlights

• Presentation of the 2024 Second Quarter Financial Status Report
• Resolution designating funds for violence reduction in the Lake Street Cultural District
• Resolution transferring $1.5 million from contingency fund to CPED for Agate’s Board and Lodge rehabilitation

Discussion

2024 Second Quarter Financial Status Report

Deputy CFO Ra Chhoth presented the financial status report, highlighting:

• The city’s credit rating upgrade to AAA by Fitch and S&P
• Parking revenues rebounding to near pre-pandemic levels
• Local taxes projected to exceed 2023 amounts
• ARPA spend down on track for the end of 2024
• Most funds meeting balance and cash reserve minimums, with exceptions in Self-Insurance and Parking funds

Council members asked questions about specific fund balances, revenue projections, and the self-insurance fund’s negative position. No vote was taken on this informational item.

Violence Reduction Funding for Lake Street Cultural District

Council Member Chavez introduced a resolution to designate $200,000 within the Neighborhood Safety Department’s budget for violence reduction efforts in the Lake Street Cultural District. The funding would target areas where homicides or second-degree assaults have occurred.

Council members expressed general support for the initiative, though some raised concerns about the process and the potential for setting a precedent. Council Member Rainville asked about addressing citywide problems, to which Chavez responded that he would support similar proposals for other areas.

The resolution passed with a voice vote, with no opposition voiced.

$1.5 Million Transfer for Agate’s Board and Lodge Rehabilitation

Council Members Chavez, Osman, Payne, and Chughtai proposed transferring $1.5 million from the city’s contingency fund to CPED for rehabilitating Agate’s Board and Lodge transitional housing and shelter facility.

The proposal sparked significant debate among council members. Supporters argued that it was a necessary emergency response to the homelessness crisis and would preserve critical shelter capacity. Opponents expressed concerns about the use of contingency funds, the lack of a formal application process, and the potential impact on other housing providers.

Council Member Palmisano said, “I don’t see how rehabbing a long-term building function is suddenly an emergency. The idea of inviting this as our process doesn’t feel very equitable, and I think as a legislative body, our world has to be a little bit larger than this.”

Council Member Wonsley countered, “This motion represents that concrete solution that I kept hearing about us wanting to seek last week. And I’ve actually had many constituents reach out and urge me to support this funding, so I will be voting yes on it.”

The resolution passed with 9 ayes and 4 nays, moving it forward to the full City Council for final consideration, where it will require 10 votes to pass.

Public Comments

There were no public comments recorded in this meeting transcript.