[Music] o [Music] we will start the budget workshop and I will turn it over to our city manager good afternoon mayor and Council this is the most favorite time of the year for many of us in local government and so today we will present our first budget work session in the budget development process of our FY 26 budget so I will turn it over to Sadia satar who is really smiling because it is really her favorite time of the year to present um the two items we have today yes it really is our favorite time of the year so good afternoon mayor and City Council Members I'm Sadia satar director of budget and Management Services here in the City of Raleigh and as the city manager mentioned this is the Kickstart to the fiscal year 26 uh budget development process um delighted to be here in front of all of you my third year in a row talking to you all about budget budgets but what I am here to talk about today is the engagement um that myself and my team conducted as part of the fiscal year 26 budget process um we have a ton of highlights to share with you all today and then in your second session um later after myself um you'll hear from our senior Capital programs analyst Hannah Osborne about giving you a preview of the capital Improvement program as well as our CFO Allison Brader talking to you all about the long-term financial planning um here in the City of Raleigh so as a city manager mentioned I am here to chitchat with all of you this afternoon about the engagement that we conducted as part of our U budget process here uh my uh goal this afternoon is to chat with you all about the Outreach that we conducted as part of the process uh go into how we conducted our listening sessions and how they have differred from prior years and they really spend a lot of time on the feedback that we heard from our community members and then talk to you all about some next steps as part of not only what we've heard but also so what's to look forward to as part of these budget work sessions moving forward so let's get started about talking about fiscal year 26's budget engagement so we have um and as I said this is my third year uh doing this here with the City of Raleigh so the budget efforts that we conducted as part of fiscal year 26 really benefited from the critical lessons that we've learned um in prior engagement Cycles um in particular we worked diligently with our Communications Department to expand Outreach efforts through social media digital advertising email marketing and as you can see print um and radio as well uh you might have seen us on WL in the mornings as you're getting ready for work um I also did a less than two-minute stint uh on desp to rale um we were on the radio in both Spanish and English uh we were also on these ik kios as you can see to the right of your screens here in downtown we were advertised in goale buses we were in the Carolinian and we were also o in gorali um sorry we were also in rale water bills um so again trying to get the word out as much as possible and trying to reach diverse audiences as part of this effort so our listening sessions again were a little bit different this year um unlike prior years where we've done you know we started with three sessions we then expanded to 15 but what we really learned as part of the process was that it wasn't the quantity it was the quality it was the questions that we were asking our residents to give them the feedback so we did two virtual sessions we actually started in December um and why December just like I've said in the past we didn't just have a municipal election we had a presidential election in November so a lot of our uh community centers were occupied um as early voting sites and then we also did our very popular budget and Bruise event we brought it back this year this year we took the feedback that we received from residents and we left downtown we went to clouds Brewing on Front Street got offend fantastic viewing even though it was a very cold and rainy evening um so that was a plus um and then we also held five in-person sessions again uh I did want to highlight that we again focused on accessibility through the provision of essential accommodations uh that included providing interpreters should anybody need any we provided folks the option to ask for interpreters during the sign-in process and then we also uh offer child care services through our Personnel at parks recreation and cultural resources so huge shout out to both Communications and prcr for assisting us for a third year in a row um as we did engagement you'll also see in the slide in front of you that we visited all of your districts here we held inperson sessions in the evening on weekdays on week nights sorry um at Abbotts Creek milbrook Laurel Hills Poland Park as well as barwell road so again um trying to make sure that we hit all these different sites just like we've done in Prior years as well so what was the purpose of our listening sessions uh this photo here is of one of our teammates uh Lauren Williams uh talking to um the community about budget and all the fun that it entails uh but there was a three-pronged approach to our listening sessions and I wanted to just chat with you all about a little bit about what that entails and that as you can see in front of you involved education access and feedback so education we always start off by talking about what the budget is um and we like to just lay it out so it's a policy document doent it's a Communications device practically um it uh communicates our priorities and our values but we went a little bit further we talked about our current budget sort of where the money comes from that's our revenues where the money goes that's our expenses and then we deep dived a little bit into the different kinds of budget what's operating what's capital and speaking of capital this year we wanted to Enlighten folks a little bit about the capital budget as well so we talked to them a little bit about pigo which is Cash financing versus debt financing and the reason why we did that is and prior years folks really had a lot of questions about that so this was our way to respond to that we also as part of the education process when a person walked into let's say a community center or even if they were in a virtual session we we created a one pager which uh shared the city county and state services so a distinction between all the three because we've learned in the past that a lot of folks think that we fund libraries which we don't or that we're responsible for schools um so we wanted to lay that information out in front of the folks that were in attention so a huge kudos to the budget Folks up here who made that happen and worked with both Wake County and the state to kind of produce that document now let's go a little bit about talk a little bit about access so in the in Prior years um we understand that when we put a budget book together it's about 480 500 pages nobody besides us in the budget office those of us who love to read that document is actually going Page by page so what we've created if you look to the right of your screens is a budget at a glance where we produce a four pager and it's a budget at a very high level what's our key Investments what's our key priorities what have we funded this year what have we learned as part of the process the engagement process but what the budget team did this uh as part of fiscal year 25's budget is that we actually put put together and this is available on our website at budget. nc.gov we created an interactive budget dashboard so a purpose of the listening session was also to understand from the community whether they have actually been using these you know cool things that we've been putting out for them so we asked the community a couple of questions the first we wanted to know if they'd actually heard of the dashboard and about 35% of the folks in attendance had and then we asked them if they'd used it 11% said they had and then for those in the audience that who weren't familiar with it or who hadn't used it we then demoed it for them and surprisingly we got a lot of positive feedback folks found this accessible folks found it transparent they appreciated that they could toggle between expenses and revenues they appreciated that they could see trends that they could see how our department budget fluctuated year-over-year but then what they also appreciated was that they provided we provided with categories of spending so here is what we spend on people versus what we spend on stuff so folks really like that so now let's go into the listening sessions or what we heard from our residents so in Prior years we were very open-ended in the questions that we ask folks which is hey uh you know we offer park services or you know there's uh we offer um let's say we've got Public Safety what would you like to see so it was very very open-ended questions but this year we took it a step further and we're a little targeted in our approach so we asked five questions from the folks um in attendance um at our listening sessions and the beauty of asking these five questions was that we were actually able to get realtime data and how we did that was that we used um a technology called slido.com so folks in attendance uh could scan a QR code when saw a question and they could enter their responses in real time and we were able to see those responses in real time in the past we had had folks write their responses and Post-it notes and then come back and transcribe them making sure that we copied that information verbatim this year we got rid of all the middleman um so whatever you will see published in the engagement report by the end of this um this month um will be verbatim from the mouths of our community members directly so let's get back to the questions we wanted to know our story as a city we wanted to know what do we do really well what do we don't do so well we also wanted to know hey what would you like to add to the budget what would you like to need I say the word cut from the budget um and then the last question was very open-ended saying if you haven't you know if there any other priorities that you'd like to add what would those be so let's talk a little bit about those questions the first question being which city of Raleigh service or amenity do you value the most and what does the city do well that you would like to see it continue so this is something I shared with all all of you when we met at the retreat last month and no surprise there over half of the folks love our Parks they love our Greenways they love our Trails they love our pools um and some of you here are really Avid bikers and Runners who take advantage of those Greenways and trails know that we have some topnotch facilities here it was also really uh gratifying to see that folks really love rally water and storm water and solid waste folks were really happy with their Solid Waste Services they called out garbage Recycling yard waste some folks were that we have the best tasting water which I'm sure that our uh Raleigh water director would agree with since we win a lot of awards there but folks were also Happ happy with our storm water efforts and then folks were really happy with our Public Safety efforts as well they called out our uh firefighters uh our First Responders there they talked about our police um personnel as well as our uh ECC 911 call taker so really uh thinking that here are the three services that folks say that the city does really really well then we asked folks um fine this is what we do really well what do you feel what service or amenity do you think is kind of missing from your neighborhood so we wanted to focus on the folks in their neighborhoods and we had like I said we had folks you know we did host um um listening sessions in each of the five districts but again folks were from all over so here is what people said uh were services or amenities uh provided by the city that they felt were missing from their neighborhood so no surprise there sidewalks again uh Street Maintenance again this is focused on really looking at a person's neighborhood um heard a lot of talk about the frequency of buses uh you know and bus shelters uh being a cause for concern with a lot of our folks traffic calming and management again popped out a lot uh folks were really concerned about about that uh and then of course uh no surprise again affordable housing folks were really concerned about those things as well so this is sort of what we could do a little bit better what folks wish you know said were missing and something that we could improve upon so I want to tell you that when I go into your third question which is what service or amenity typically provided from the city that you feel is missing from the city as a whole which is the next question that you'll see we got a plethora of responses and nothing really popped out per se so you'll be seeing a bit of a word cloud here but I'm going to talk about it with you here you go Lots there it was really really difficult to kind of parse out and select exactly what people were saying because people just had a lot to add these are multiple responses from the same individual you'll see housing there you'll see affordable there you'll see Community you'll see programs you'll see transportation that again goes back to the frequency of buses there in the notes that I've read so far you'll see maintenance that also resonates we've heard a lot about Street Maintenance um you'll also see uh affordable again Community talking about the unhoused the homeless um some folks had concerns about composting as well so there was a lot that was thrown at us uh there and again you'll see all of this feedback when you read the engagement report now the next question that we asked folks was um so this was the question that we asked which says wait I feel like I'm I maybe skipped a slide maybe I didn't but this is what folks would like to add to the budget my my apologies there so this is everything that folks said we would like to add to the budget now the next question that we asked them well that's great you want to add all this to the budget what would you like to cut um we got some really funny looks in that regard uh but something did pop out here and unfortunately it is a four-letter word and it is leaf l e AF f um so now how could that be I will tell you that in my third year of doing this this is the first year that seasonal loose leaf collection popped out and it could be because of when we were doing it we never do these in December but we were doing it in December we had a lot of folks very disgruntled about this service I have already spoken to our transportation director about this so he should not be surprised but again that was the big four-letter word that kept on popping out at each and every session we also heard uh folks talking about you'll see parking there folks wanted us to get rid of our parking decks I mean folks had a lot of opinions like I said it's really hard and again these were all available to us interactively live you know right then and there so but these will all be available for you to read at your leisure so after that we asked them what else would you like to prioritize as part of the budget process okay sorry sorry no it's okay I'm I'm I'm happy that you're engaged thank you um so the last question what are your priorities for the upcoming City budget that you haven't yet gotten to share no surprise there uh housing popped up um folks had a lot of uh comments on the budget and the budget proc process what they'd like to see um folks had some question again you'll see the word affordable you'll see the word employee pay you'll see housing again folks had a lot of concerns about Transportation about infrastructure uh about employe pay um so folks were a little all over the place but again this is that opportunity the listening sessions are a perfect opportunity to Prov we we just this is you know we want to hear so that's what we were there to do can you remind us how many people these word clouds are these are 121 folks with multiple responses okay yes and just to clarify sir word cloud does a word and not a phrase so affordable housing is broken up into two words that is correct thank you okay so those were the five questions that we asked folks so now that we've seen and and heard all of this where where do we go so I'm excited to share that right now myself uh and members of the city manager's office are engaged in budget meetings with all the department directors our goal in those meetings is to share this feedback that we've heard from them particularly the director of let's say transportation and you know other departments who you know we hear time and time again that these are concerns that are residents have and I also want to say that I've written here that we'll incorporate resident feedback into the development of the pro BMS oh my goodness budget and Management Services that's another ding against me that the first ding was at the city council Retreat when I left a another um acronym I'll make sure I um I learn but yes hopefully there won't be a third time yes so budget and Management Services will incorporate resident feedback into the development of the fiscal year 26 uh budget so I just want to go back a little bit because this is my third budget so in fiscal year 24 Forks had a lot of concerns about neighborhood traffic uh concerns there as well we always fund uh the neighborhood traffic Management program as part of our capital budget last year for had a lot of concerns about sidewalks that's what our million dollars in PB went to and this year again we hope to deliver on those results that we've heard as part of the budget in the fisol year 26 proposed budget as well so moving forward uh our budget work sessions uh this is the first one we have a second one scheduled for March 10th that'll be all HR we'll be talking about or not we our HR Director Chell Jones will be talking about the classification and compensation study as well as HR benefits and then April 7th my team will come back to you to talk about annual grants our annual grants program here in the city and then you'll also be hearing from the Enterprise departments uh such as Raleigh water storm water as well as Solid Waste Services um and then we hope to knock on wood bring a balanced uh proposed budget to you all on May 20th um so that was uh my presentation this afternoon and I would like to now open the floor to any questions you may have thank you councilor silver thank you Sadia for a very entertaining presentation uh I could see why this one was different and slid was a great idea um in all the years I've watched budgeting both as a person in government and then watching the most confusing to Residents is understanding expense capital and in this case Enterprise in your conversations did that ever surface because a lot of people say oh I want this funded thinking it's an expense just put x amount into it and we can get it done versus understanding expense capital and then Enterprise by think expense and capital are the main two distinctions that was that ever clarified or you just did your Outreach based upon those five questions so um one of the things that we did right at the beginning of every listening session council member is do a little education and that's where we were able to say hey there's different types of budgets there's an operating budget which is kind of your everyday stuff there's a capital budget which is stuff that takes a really long while to build those are your those are your Parks your community centers and then there's there's stuff that's run like a business those are your Enterprises and that's why you charge fees so when we laid that groundwork that actually didn't bring up those kind of questions that folks had so we were able to do that education in the beginning and kind of you know Lay It lay like I said lay the groundwork for a very productive listening session with folks and just one followup because I want to be clear as they have conversation for sidewalks yes some of that could be done in an expense budget but the vast majority is a capital budget correct you know if there's concern concerns about affordable housing yes we have programs but if you really want to do something that may have to be a bond so I just want to understand when people say I want this in the budget saying wait a minute we may have to go out decide if we wanted to do a bond in order to fund it so they understand for a sidewalk or something that is a huge Capital expense uh I just want to make sure not leaving away with the expectation oh I put in my input now we're going to get a Citywide sidewalk program when that is something most likely will have to be part of a bond and will take longer to implement versus the budget which is every fiscal year correct so were they clear about that because I know we're getting questions about can you do this large expenditure I'm like that's a capital expenditure no no no they were absolutely clear about this in fact we know that folks in this city in particular um are really concerned about their sidewalk so we made sure that when we talked about the capital budget we highlighted sidewalks yes councelor Patton yeah hi thank you hi I always look forward to these um yeah sidewalks came up sidewalks have been like Far and Away the thing we've heard over and over again across the years so I think that should be a signal to us both that our community wants us to fund it with our dollars but also to that they would benefit from us innovating on how to like sort of increase our capacity to to meet what they're hoping to see in their neighborhoods um I also thought it was really astute and I'm glad that you asked folks what they would be willing to go without in order to have some of the things that they would like to see instead um so I have in my interactions with the community often put that question to folks and find that they're like well nothing please don't raise my taxes but do add services and don't let anything go and that's a really tough uh needle to thread so I'm glad that we put it to the residents and I'm glad that they offered something uh that we can that's useful for our consideration um I believe we're having a work session about loose leaf in the coming like weeks or months yes great um two questions I did have one is that um I know a lot of folks attended multiple times and I'm curious how you uh are calibrating the data so that we're not uh amplifying the voices of our repeat attendees at the expense of folks who might have only attended once that is great that is a fantastic question and that's actually something that my staff just talked to me and just wanted to share with you all when an individual scans a QR code and writes their response or multiple responses I am not able to tell if it's coming from one person or two people or three and that is why you will see some things elevated more from the same individuals that attended multiple sessions as opposed to those that attended once but may have said something that others in the room also echoed so unfortunately through that tool we were not able to uh calibrate for that but I understand totally understand that that is concerning got it okay so the but the survey does so when we publish the full engagement report this we'll be able to if the survey results mimic what we've seen here so I did not do a survey this year okay um yes um and the reason I didn't was because the office of strategy and Innovation is doing their very statistical randomized survey whereas my survey have never been randomized um you know we I literally go and Hound people to complete my survey that's not randomized but what we have learned in Prior years is when we've done our survey and they've done their survey the results have been fairly similar so we decided not to do a survey this year and intend wait for them to do their survey wrap those results up and hopefully those should be uh available to us prior to the budget proposal in May okay that's helpful and then my second question was around um like you acknowledged that in a prior year you had done these engagement sessions earlier and then due to the election and the use of the community centers this year it was um pushed back we do have elections every other year so I'm curious like should we expect and should the public expect that in off cycle years the engagement sessions will always be early and on Election Years it'll always be later or is there some like tweaking you're hoping to do or well I think we should always be open to things being different um my uh my goal is to conduct them in October of this calendar year because that's kind of what we do we do engagement before we kick off the budget process but yes uh we now I will say that things were a little bit different as well because it wasn't just a municipal versus a presidential election um so I'm not sure about if I can give you a definitive answer standing in front of you right now but I will say definitively that we will start in October this year yes thank you okay councelor Jones and then Branch hi Sadia thank you so much uh first of all I just want to congratulate you on a great job with the engagement I was able to attend District e and I'm so proud that we went from five people last year to overnight I think it's about 19 20 people inct cor um and so I'm really really proud of the work that you guys put into that um because that's how we're going to measure you know as we grow like that's my job to help get people out there on those meetings so great job on that going to the back to the social media slide at the beginning um knowing that you use uh the Ikes the email and all that do you have one that was the most like the best performing in social media that got you the most responses um I will have to speak to our Communications administrator and get back to you on that yeah no problem I just love oh we have Robin De our uh communications director she can respond thank you so much thanks Robin hi there Robin deel the communications director I can give you the first layer which is that Facebook is by far our most uh Impressions and engagement on the budget survey really yes by far yeah oh that's fantastic and so with that data hang on I I may have a followup question with that data does that guide you on next year or how will you use the information to now grow the response for next year I'll be a little vague like Saia was with the sessions themselves absolutely the data informs what we do next because sometimes you want to put a little bit more where you have a bigger audience or certain kind of audience that you want to reach but more often than not you put your dollars where they're going to get the most uh Impressions engagement that kind of thing so I think just generally I would say that probably means we put a little bit more time and effort into our Facebook posts next year interesting interesting and then I just wanted to Second and just put my little pin in uh for next year when we change that as you guys are looking at the going from October to December I know that that was frustrating for residents this year because there was the waiting for October and then it came in in December January and so um you know how we however we look forward whatever it's going to be just being more consistent U might help with that uh explanation to Residents um and then I did just want to highlight you did in the in the words when we got to the words but especially in my meeting when we talked about staff and how great our staff is residents made a big point to say that while we love it we want them to be paid more and I don't I'm sure that was reflected in other in other sessions as well but I only attended mine and so I wanted to make that that yes we are congratulating all our staff as well as understanding that we are not paying them what um we need to pay them and that was reflected so I just wanted that on the record so thank you so much for your work thank you definitely thank you for the presentation my question goes to the educational piece um I know you say you did a lot up front of sharing information um and this kind of brings Robin to this as well have we thought about doing a video of that educational piece and that way it's on the website and you have it year round people can find it and then when you're prepping people for the sessions you can send the link in advance so that way when you get into the meetings you can have more conversation about the actual budget and what they want and don't want instead of having to do all the educational piece that is fantastic it's something that I've actually have spoken to the communications director about um because there's one thing to have staff stand up there and talk about the budget but it's another to have like a really creative animated video Shing saying hey look at you know so other cities have done that when I was in Philly we did that as well and it was just fabulous people just really engaged with a video um and I think I would like to do a video on you know how the budget is made and then at the end once we adopt the budget it'll be like you know what's in the budget as well so not one but too um for our residents cool thank you my last question is when we talked about the word cloud and you say how it's all calibrated and you can't do you have a word cloud from each session that will be in the backup materials and then that way we can tell okay we can get an idea based upon the session or where in the community that session was held what was what was elevated within that session so I do not have the results by District I have them by question that's how we uh you know geared them um we do have um some notes to staff captured in each district which I would be happy to add to the engagement report for you and this last piece and this may be more of an IT part is is Carry On from that when the data is entered that you're collecting I'm sure there's a time stamp somewhere on the back end just see if it could possibly pull that and then they know each date in which that information I have the date I I do perect it's just that so okay so I understand what you're saying I have all the data from slido and I can go and say on let's say one on the 6th of January I went to District that was that's my district district D and these are the this is the question that I asked and this is how it was responded this is not how I have been have thought about approaching uh the engagement report but if it's something that Council would like by District which I see you nodding your heads um we'll have to Pivot um and make some changes there uh if May delay when the report comes out but I'd like to think on that a little bit and see what works best yeah just think about it I don't want to hold it up or delay it but just something to think about a way to just pull it and that gives us an idea because I honestly feel that as great as our city is in community is certain parts have things that they kind of want to see more than others sure well and then it would also be helpful to just see the demographics rep you know is this a representative I we know is not statistically valid and we don't have enough people and but it would still be helpful to know was this somewhat representative or does it skew you know and so all that sort of analysis so we can sort of assess this uh with context absolutely and I'm sorry I forgot one question and that was it regarding the participatory budgeting um that was really exciting will that continue into this budget I don't remember us talking about it at the session um so my my response to that and I've been I knew somebody was going to ask me about PB um so PB takes about 18 months um we did it on steroids um here in the City of Raleigh where we just did this really fantastic I would say process um now uh we are working together with the transportation department as well as with Parks and Recreation and Engineering Services to make those projects happen um so I you know would rather see the results of that before we pour more money into that but then on the other end I would also like to add with city council that communities who do PB have actually a resource within the city that does PB and for our budget office and the analyst to do PB it's a hefty task um so with that I'm not I'm not sure it it's a it's a Frank response yeah no I appreciate it thank you so much you're welcome so it sounds like you need to put an additional headcount in your budget proposal that's what I'm hearing not going to say [Music] anything okay well thank you very much I really appreciate it good afternoon mayor city council city manager and City attorney I'm Hannah Osborne the City Senior Capital programs analyst here is today's agenda so first I will speak generally on Capital budgeting and elements that are specific to the City of Raleigh next I will walk through Raleigh's capital budget process and present a preview of the city's 5year CIP or to say out the whole acronym Capital Improvement program then I will turn over the presentation to Allison Brader our finance director to discuss long-term financial planning to start I will Define terms that we'll be using throughout the presentation a capital budget is a legal document adopted by ordinance that contains funding sources and Appropriations for Capital assets that exceed a selected Financial amount known as the capital budget threshold the city of Raleigh's capital budget threshold is 25,000 a capital asset is a tangible or intangible item with a useful life that extends Beyond one fiscal year in the state of North Carolina a fiscal year is July 1 to June 30th a fire station is an example of a tangible Capital asset and a computer software is an example of an intangible Capital asset Capital funding can be classified into two broad types debt financing and Pago the city uses a range of debt mechanisms General obligation bonds are approved through ballot initiatives and are backed by the taxing power of the city typically Parks and Recreation facilities affordable housing and major transportation projects are funded with General obligation bonds limited obligation bonds are issued based on available debt capacity and are generally used for City facil fa ities revenue bonds are primarily used by Raleigh B water to fund Water and Sewer infrastructure projects Pago sources include direct general fund support fees and specific program income unless otherwise designated by Council general fund P can be applied to any project whereas certain fees and program income may only support very specific eligible projects Enterprise funds account for operations that are financed in a manner similar to private businesses and have user fees to directly generate Revenue Enterprise funds and the Enterprise funds also use at financing at the April 7th budget work session many of these Enterprise departments will present their FY 26 operating and capital budgets for that reason today's presentation is going to focus on general fund Capital elements the city organizes our general fund capital budget into these elements I do want to point out that general public improvements include Citywide facility maintenance new facility construction including fire stations planning and studies and economic development initiatives so it's a pretty broad category can I just ask one quick question about so affordable housing Raleigh Housing Authority I realize is not on your other list but I know they are trying to get bonding Authority so they can issue debt where are there important entities like the Raleigh Housing Authority that fall outside of this list I'll say there may be this conveys ones that are considered formal City departments right yeah good afternoon Alison bradshire with the finance department um I think that's a great question and definitely the Raleigh Housing Authority we have certainly been in conversations with them uh recently about their future desire um to to essentially offer some debt financing you know certainly other partners like Wake County with the Wake Transit plan etc those would be the ones that immediately come to mind okay thank you as previous ly approved by city council there are four Capital Areas with dedicated 1 cent equivalent of the property tax rate this policy decision commits funding for affordable housing Street resurfacing Parks maintenance and Citywide P projects in addition to Dedicated P funding as discussed affordable housing major transportation projects and park Parks and Recreation facilities are also funded through General obligation bonds the city builds out our five year pgo CIP assuming a 2% annual growth in the value of a penny and that's why you see an estimated 11.62 currently in FY 26 those numbers are not final yet that is our current estimation that we build out a 2% estimated growth as mentioned starting in fy2 the capital budget includes a dedicated general fund support for projects best suited for pigo funding this dedicated General funding provides support for Bond ineligible projects and commits support to external facing programs internally it also allows us to better plan for project delivery this slide just serves as a refresher of where dedicated pigo funding was awarded last fiscal year as previously mentioned the city builds out the 5-year pigo CIP assuming 2% growth in revenue on average this is just an example the cost per curb ramp replacement and per square yard of Street resurfacing and sidewalk repair increases between 8 to 133% annually another example is that over the past year the cost to replace HVAC systems has increased by 90% And then jumping from the past three years the cost per square yard of bridge repair has increased by 65% and the cost to replace video cameras Hardware has increased by staggering 250% so while we accomplish many projects and ongoing initiatives with our Pago support I do want to note that the cost to deliver these servic these projects outpaces assumed Revenue growth in this next section I will walk through the city's Capital improvement process and give a preview for FY 26 this first step in the process is about identifying Capital needs that said I want to acknowledge that departments do specific work throughout the year and earlier than October but October is when our office the budget office starts to formally accept and receive um requests from departments and with their Capital needs right now the city is is in step two and three just so you can see there on the timeline but I just want to see that's where we are right now we are actively evalua valuating and prioritizing needs and identifying the most appropriate funding mechanisms for each project in early December the formal process for collecting capital budget needs concludes this and the following slide display the value of requests for general fund elements for FY 26 or fiscal year 26 through fiscal year 30 this information excludes dedicated p support for Street resurfacing Parks maintenance and affordable housing in addition it excludes current and future General obligation bonds since they require approval through ballot initiatives as you see displayed the largest Capital commitment requested over this 5-year time frame is for fire stations followed by transportation and then new city facilities here is another way to visualize the requested Capital needs over this time year 5year time frame and I'm going to take a moment to just highlight a few of them and explain what's under the categories so Public Safety construction which made up 40% of the identified needs is largely for fire stations and replacement for new fire stations and Replacements of ones that have reached their their um end of their useful life traffic management includes things like Bridge repair identified through inspections new traffic signals and the neighborhood traffic management program which um in which installs traffic calming measures and then active Mobility includes Vision zero enhan enhancements such as crosswalks audible pedestrian signals and other safety improvements for ADA compliance American Disability Act external Community Support includes the building upfit Grant the facade Improvement Grant and the impact partner grants Building Maintenance includes projects to maintain upgrade or replace tangible Capital assets to ensure compliance and to enhance the health and safety of employees technology needs include tangible assets like equipment for the new city hall and intangible assets like replacing the city's existing enterprise resource platform in December and January departments present their prioritized capital request to the city manager from January through February requests are evaluated using these nine criteria greatest weight is given to projects needed for safety concerns and to address Regulatory Compliance evaluation feedback is then shared with the city manager and directly informs our Capital budgeting decisions the city is currently in this stage of the process and is also in the next stage of the process so I presented it in a very linear fashion but these these different steps do tend to overlap from January through February the budget and finance departments identify most appropriate financing mechanisms debt or payo for the requested projects this process also involves reviewing departments available Capital budgets and reallocating budgets to meet some of those Capital needs the largest Capital funding source is debt when you issue debt for a project current and future users are paying for the project in addition debt financing represents long-term Financial commitments which have lasting policy impact for example Parks Bond projects were primarily debt financed these projects take years to complete and when complete will serve to benefit both current and future Raleigh residents other projects which are reasonably accomplished in one fiscal year and have an immediate annual benefit to the public are primarily funded through pigo financing for example plan Bridge repairs although Bridge repairs will benefit future residents there is an immediate need to deliver on these projects annually therefore Bridge repairs are best suited for pgo financing another reason to use pgo financing for specific projects is it preserves our debt capacity for much larger capital projects and then another reason to use payo financing is because those projects such as the purchase of generators are not eligible for debt financing all right so level setting where we are now we're currently in step two and three I'm going to present a little bit about step four but that's where we're going to next we are still in the evaluating stage and identifying the most suitable financing mechanisms for each project so in March the city starts to prepare the proposed 5year CIP the next slide presents a preview of what council could see in the proposed budget uh oh I think a slide is missing I know it was on there in address rehearsal it's okay okay well I will Allison how do you feel if I go forward to some of your other slides to see if it just happens to be moved somehow everyone just everyone just close your eyes for a moment all right it's definitely not not there all right so what I will share that's why it's a preview it's so such a preview that it's not even visually there um so imagine that I have segmented this off into six categories present you a preview um the first category is new facilities and that includes fire stations and Facilities that serve City operations such as a new um vehicle Fleet Services structure and facility and then the next category that you would see is transportation and you can expect to see continued funding for the city's Vision zero efforts Bridge repairs and other initiatives and then the next block on there would be Capital technology and so what you can see there in the next 5 years includes needs to support support the technology at the new 911 backup center and replacement of the Ci's as I mentioned Enterprise Records and planning software and then the next box we go down a line first row in the next line um the cities the CIP is expected to continue its support for external facing programs to highlight a few the impact partner Grant supports under represented innovators and then the public project Community Support fund helps to address impact ta to Residents and businesses resulting from qualified large scale capital projects and bus Rapid Transit is an example of that all right now we're second row middle um Council can expect to see continued funding for Building Maintenance and site security improvements and then the final category is titled other projects and to highlight one within that box um would be the city's Civic places program which is led by the department of planning and development and this city city-led program integrates placemaking elements in public infrastructure projects now I will turn over the podium to Alison bradsher uh the city's Finance director to discuss long-term financial planning before you go so just to be to clarify Y and then I'll uh these are all non-enterprise cor projects yes and it would be good to get a feel for the size of the capital projects within the Enterprise funds relative to these this bucket that we just discussed yes all right okay have a questions I just had a a comment and a question you can go back to the evaluation criteria first uh let me applaud you because being on the other side as former planing director this is extremely helpful and I was going to ask you know this is what I'll look toward as the evaluation criteria when these projects are prioritized I just had four and they're on there which was life safety state of good repair equity and existing plan so you went even beyond that so I applaud you for that but just want to make sure I know in any given year uh I know you may shift a priority but I would like to know as these are waited once the final priorities come in you know Equity is one very often Community will see a lot more money is invested in one community and not the other I know the parks bond for example was very intentional about communicating how the bonds are going to be are going to be spread spre throughout the city in a very Equitable manner so just don't know how these are weighted from year to year is a change are they weighted because this to me is the most critical slide about how decisions are made about the final 5-year Capital Improvement plan and would you like a response or a budget note on that I have you to respond you could respond yes okay um so I will know that this criteria is used for our general fund element projects that we receive and is not for our general obligation bonds so there might be I will say that um I've not been here through the creation of one of our general obligation bonds yet hoping for it in the future um and so with that though I will say you see that there's nine criteria here with that we acknowledge that safety urgency and Regulatory Compliance if we didn't wait that one it might lose some of its value to our process and so that one is weighted by a factor of three over the other um criteria listed here so I will note that we also um some of them are not worth a total of three points because um one thing that we found and we've got great departments here who really advocate for their uh projects but sometimes it would become a laundry list of all the organizational plants that might align to the project and so we started to award just one point for those projects to be you know sort of a bonus on them so there's a specific weight that's making sure that we're still prioritizing those um safety urgency and Regulatory Compliance the and my last question is that for example Community engagement Saia has told us how sidewalks floated to the top of the list uh it's very expensive part of Transportation uh just wanted to know how a request like that uh would fit in and and if we use some of our capital investment to leverage private sector investment to potentially complete a sidewalk sement versus just it being on the the taxpayers to build out the infrastructure I believe that when uh Allison or um Miss Brad present Brader presents at a moment that she will touch on how we changed the way that we are publishing out to to the external Community um our Advanced planning that it might provide more opportunities for that private intersection I had a quick question okay let me um get councelor branch and then mayor protm for so for big projects you mentioned fire and the fire implementation plan and building new centers new new new stations so you have a station but for the station of work you need equipment so is that equipment included in that cost as far as the new station as far as the engine ladder things of that nature as it was presented in those numbers so back let it's forward to the sort of the breakdown um of the percent in the total of requested volume in terms of dollar amount that only includes the capital cost so it does not include the equipment when we solicit this information from departments they also complete an operating impact section and so they will put in there what say it's a brand new station what Staffing are they going to need to to you know occupy that space and what equipment will they need and so then that's factored into future Years and we're looking at the budget of what are those operating impacts that will be needed if we move forward with funding these projects okay thank you and can you go back to the um identify Capital needs pie chart that you had yes and this question is probably more for the city manager than for you directly but when you look at the pie chart and it's U Public Safety new construction about 40% and I know we touched on this real briefly at the retreat but the possibility of merging construction for RPD and the fire department like when do we make that shift so we can sort of minimize or not have to duplicate cost of trying to do two facilities for each organization or Department instead of combining it and doing it for one as one great question and we're already testing that model right now with the construction of um station one in headquarters because it will also house the backup for the 911 um emergency Communication Center so as we move forward as I shared with you at the retreat the only way we're going to be able to afford to build out the facilities that a city this size with the growth um patterns that we have experienced over the last several decades we're going to have to share facilities otherwise the expense and the debt is going to be far beyond the life of the the useful life of the facility so we have been working in the last year and a half um when we looking at how we build these stations how do we do a dual public safety center it's not rocket science there are some communities that do it already um and that is out of necessity but for us I think it is for greater efficiencies operationally and financially moving forward thank you okay any other questions not good job with the missing slide just on the Fly all right so good afternoon mayor and Council and thank you Hannah for that comprehensive review of the CIP budget process um I'm Allison Brader with the finance department and as that as a backdrop um I'm going to shift gears a little bit and do a deeper dive into the long-term Financial Planning and the steady state Concepts uh that was a topic at your Council Retreat so here is the agenda that I plan to cover again long-term financial planning with a quick review of our general debt model uh discuss the steady state concept discuss uh dedicated funding allocation and advanced Capital planning program and then really based on the discussion at The Retreat layout a scenario of what steady state may look like all right so one important aspect of financial planning is the city's ability to look long-term at the capital investment needs uh debt financing allows for a comprehensive Equitable approach to funding the city's Capital Investments and Hannah noted that in her presentation if the the city doesn't generate enough cash right on an annual basis to fund large projects such as a new fire station therefore debt financing is an important tool in our toolbox we do have several sophisticated financial plan models uh today I'm really just focusing on the debt model that supports General government Capital needs that enables us to track uh Debt Service payments on existing debt that we have the model incorporates all of our general obligation and limited obligation bonds and again goo bonds are uh where the city has done Parks affordable housing and transportation and limited obligation bonds really satisfy the city's infrastructure needs the model also tracks our management policies and as a AAA rated credit entity that is extremely important and allows us when we do go into the markets to get the lowest interest rate we possibly can also the debt model uh allows us to analyze and run scenarios on what the city's ability to issue debt in the future so we call that debt capacity so this chart uh was one that I shared at The Retreat which really just sort of at a high level talks about steady state uh and as a concept and recognizes our continued growth and wanting to ensure a transparent approach to funding both operating and capital Investments recognizing that debt financing needs support our growing city steady state looks into the future and manages debt affordability over time again three key Focus are as which is dedicated funding uh Advanced Capital planning and then both of those allow for that steady state or that debt affordability as we look to the Future so the dedicated funding allocation really offers a transparent approach to how the city would allocate property and sales tax which again in the general fund are our two largest revenue sources and that would be between uh General uh fund operations and then essentially what would be used for Debt Service or Pago uh so at the retreat council member Patton provided a great analogy so I'm going to walk through that again um so essentially today you deposit your paycheck into your checking account then you take a second step to maybe transfer some of that into your savings account uh taking this into uh that real life example into the city's budget process if you look to the left of the chart you can see property tax at just under 400 million and you can see how that allocation would happen in the future so again instead of that 400 flowing directly into the general fund then to the debt service and then to payo it would essentially be deposited there directly um and you can see uh with that that breakout there uh same concept would apply to sales tax as well so again about 80% of sales tax would uh be allocated to support General fund uh or ongoing operations little less than 20 would help Debt Service and part of the conversation today is to not allocate any uh any pgo dollars um coming out of sales tax again these are all just examples so y'all could see what it would look like from an fy2 uh budget perspective so The Upfront um allocation again uh does that transparency to the public and it also allows any Sur plus that may be generated to actually flow into the general fund as well as The Debt Service fund which also would increase that capacity in the year of implementation uh onetime initial seed money comes from the lowering of the general Capital reserves and we would use that again to seed the advanced planning program and then those funds would be replenished later when we would actually go into the debt Market we would essentially reimburse ourselves so uh Advanced Capital planning um again talked a little bit about how it would be funded uh so just wanted to give an example so the top part of the slide is really kind of the today approach uh with the bottom part being the tomorrow approach and what we were introducing was really today we have a one-step approval process so the the land purchase any design construction is all appropriated one time so if you look at that one example it would have been $30 million as you go through the design process or land acquisition you know you will note that plus $5 million right so at some point the project needed a an additional infusion of budget for a total of $35 million um so again at that initial point because we are so far out in the process we have the risk that our project estimates are not accurate and that cost overruns can um can come into play which could create project delays so the tomorrow plan is really to allow Council a two-step approval process uh where the design is uh approved initially and at at some form of design whether that's you know 60% or 80% or almost fully designed the idea is Staff then has a much more accurate view of current cost estimates for the construction which is clearly the largest piece and so so then at that point what we would put back in front of you is the total project was 35 million so Council then really has the ability to prioritize projects City resources and budget needs in a more proactive way instead of a reactive way so this was a slide also shared uh at the council Retreat which really uh just talked about with that dedicated funding allocation Advanced planning we get into to this concept of a steady state model again with the idea that our bonds would be smaller but more frequent um with a a greater known level of certainty so uh obviously the house the tree and the roadway illustrate our Geo bonds or our general obligation bonds which affordable housing parks and transportation and the other building at the bottom um essentially is your limited obligation bonds which are us to support our city infrastructures uh such as um fire stations so this chart goes quite a bit further than um I did at the council Retreat and I know it's really really busy and there's a lot of information so let me just sort of walk you through um through through the concept here so based on the discussions at The Retreat the scenarios that I'm putting uh in front of you now really has the timing of bonds to every four years years uh so if you start at the top left of the chart you know here we are in calendar year 2025 we are planning for the FY 26 budget year in the calendar year 2026 there will be an opportunity uh for Council to consider a Geo Bond on the fall ballot in the fall of calendar year 2026 at that point we're already into budget year 27 um so what you'll see then is you'll see those three dotted lines across each of those scenarios the first one starts at $90 million so what does that mean based on the uh General debt model and all our known prior CIP approved projects as well as the general obligation bonds that have already been voted on by the public uh we have debt capacity to issue $90 million of debt every four years into the future the 90 million would cover both General obligation as well as limited obligation bonds so again Parks Transportation housing and then City infrastructure and Council as a part of the budget process would decide the mix of funding uh for each of those four purposes to provide another scenario uh with a 1 cent property tax increase again these are just scenarios to provide you a perspective we would increase our capacity to $210 million again for a mix of all four of those purposes and then spread out over four years into the future uh and then I ran another scenario at two cents and you can see we would have $330 million of capacity again for those four types of funding needs so it is important to know that any increment to the tax rate uh would actually occur in the FY 28 budget process so I know I have to stop and and think myself about what year are we in what fiscal year are we in what budget year are we planning so I really wanted to lay that out as an opportunity for Council to see when when really future decisions need to be made which are outside of the current FY 26 budget process we're in so again this is just one scenario uh we can model and consider lots of variables including the timing of future bonds Etc so I I just wanted to put that out for there for discussions at the future yes yeah just real quick um so I see you've got a fall referendum every two years but then I see the amounts seem to be changing every four years that comes into our budget um is that am I missing something yeah no that's just the availability that you would essentially have every four years so on that fall like if we jumped out to year 2028 um based on the discussion at The Retreat there would not be a Geo bond in this scenario that we would be considering okay is that helpful I think so thank you coun silver I had a question about the transportation bonds Paul don't jump out of your skin just yet um when I see transportation I don't know whether a label is better to be Transportation or Mobility because I'm assuming by virtue of that title that the vast majority of those funds would go go toward cars or roads and I'm just wondering of those bonds what percentage on average is for roads what is for sidewalks what is for bicycle facilities transportation is a catch all even a symbol has a car so I just want to make sure as we communicate is this really just Transportation SL Mobility bonds and we talked about evaluation criteria in the last uh segment uh by Hannah just want to know of that Transportation what is the expectation that what percentage goes toward roads what percentage goes toward uh sidewalks of pedestrians and bicycles is just helpful to me and I do know we have development fees both for parks and transportation that go to specific you know areas uh where those developments occur so just getting a better understanding about how we plan for those because once again sidewalks have surfaced as a huge Community priority yeah absolutely and we can give you that breakout from our last Transportation Bond I certainly don't have that on the top of my head but I I do know as Council would approach a general obligation Bond you know lots of those discussions and priorities would be included uh both from where projects would be located around the city what types of projects would be addressed um is a critical aspect of that Bond uh planning as Council moves forward for any sort of ballot proposal so for your $90 million debt capacity every four years does that also take into account other post-employment OPB liabilities and then if we were to increase opab liabilities does that reduce the 90 million yeah so it does not include um any other long-term debt that the city has so specifically on our opab or even the funding that we are required by Statute to uh send to the treasurer's office for uh you know pensions that is not incorporated into this model at all this is strictly looking at kind of our revenues in which is our our property tax and our sales tax and then the true Geo or limited obligation bonds that that go against that funding however it is a really important concept as we get bigger um you know our debt burdens are also going to get bigger and so that has to be balanced as we think about our long-term obligations in total not just that I have another question about the every two years idea so we mentioned this in the retreat the need for education and for residents to feel comfortable with that kind of a schedule so what do you propose in terms of how we connect with residents on this idea and when would we need to be putting this into place you know what kind of Engagement needs to happen before we would make a decision sure I I'll be glad to to take a stab at that I definitely think we have time right as we really think about uh because again as we're sitting here today we're we're in the midst of the 26 budget this does not really come into play at all uh from a 26 budget perspective now we are going to do the allocation of the funding and the capital uh pre-planning uh but as we think about what a a referendum would look like you know you're now in the fall of calendar year 2026 so I know Robin was up here earlier but that would be an important aspect to consider is how as a city we would move forward and really have um resident understand that by moving in this direction not only this is the capacity but this is what that process looks like as it relates to the to the budget process yeah I think what I'd be looking for before we gave any direction on this is what that engagement plan looks like and you know how we can ensure that residents again are aware if this is where we're headed question excuse me question what where does 2/3 bonds fall in this conversation um because I know I've I've lived through that experience yes and and can you briefly explain to others what that is as well yeah so 2third is um is by Statute and essentially the debt you're putting on and the debt you're taking off you're able to use 2third of that capacity when the city moved back in 2020 to bond anticipation notes those are those short-term draw programs that we engage in a bank we spend we draw we spend we draw then we issue fixed debt that has reduced our capacity for any 23s um really until we the city would consider another change those Bond anticipation notes have been uh We've utilized them very well here at the city not only on our general side but our Enterprise as well so long and short there is no debt uh 23ds uh capacity at this time councelor Patton hi thanks I just want to make sure I'm understanding this so to start with you know our voters are accustomed to I'm sure at different levels of awareness some voters walk into the voting booth and say like Parks bond that sounds good check um but some certainly a lot of them are accustomed to seeing a package these are the these are the specific Parks projects that the relative funding levels for each project in this scenario instead of saying this is a Parks Bond we would just say this is the bond and these are the two Transportation projects and the four housing projects and the one park or whatever mix is would we still be presenting to the voters a package of things that are paid for with that debt yes I think the key is um you know part of the messaging would be especially after you get past year one those projects are coming without an additional tax increase because the capacity to issue is essentially already included in how the city looks at its funding structure uh so you would still have a park spawn the park spawn if we use the you know $90 million example could be 50 million of the 90 million and yes the voters uh would want to know you know what projects that's supporting Etc then the balance of the 90 could be used for any of those other sort of purposes that I talked about um that that's really the key got it and do you have a sense from other municipalities who've moved to models like this like what does it say on the ballot because I you know when it's on the ballot and it has a specific topic I think lwi information voters might be like oh yeah I love affordable housing got it um but this would have such a mix of packages like what does it you know what it actually says so on the general obligation son they they would still be voting on a Parks voting on a transportation voting on affordable housing it it wouldn't be one kind of bucket if you will yeah so they would still have I mean in theory a Parks could pass and a transportation could not pass I mean in in theory okay understood that wouldn't be ideal so I think I'm understanding and I just want to make sure that I'm clarifying our conversation back from the retreat in this since this is just Capital Improvements will there be in our conversations the operational cost and maybe we already answered this and I'm just my head's getting all spun up but if I'm going to put a bond every two years and I'm going to say oh here's all the pretty things we can have but I'm not going to also weigh that and say Here's how much is this operationally going to cost so you can't just residents can't just say oh I've got this Bond but I don't want another tax increase like it would be two you would be paying for this and a tax increase in order for us to support that am I incorrect saying that or am I correct saying that yeah I mean I think it depends but uh but yes one of the things that the city will need to do and we do do today I think the example was the fire station earlier yes that comes along with an operational burden to the city that is one year and then right it is a continuing obligation of the city not just to build the infrastructure but to support the infrastructure um and so so back to that that initial kind of funding triangle slide you know yes you you could see incremental property tax needs in order to support the uh the infrastructure needs that you see here right and I just want to make sure that as we have this conversation that I'm making sure that I'm being clear because this would in reality increase it more frequently um so every two years we're talking about I need more money you guys voted on this every two we have to increase this and this and so what people are feeling right now in this every four-year Bond structure I need them to understand that this they would feel it more frequently in this structure well this is one example and this is over a 4-year period um so there are lots of different scenarios that the city could consider um as we again kind of talk about what an implementation plan would look like right I'm just saying that because when we talked in the council Retreat we did talk about every two years so if we're doing stuff like that every two years there there's there's uh equal raises as we we need to operationally fund that as well so I just wanted to put that out there and make sure that I'm not understanding it inappropriately but for me that seems like we're increasing and and residents are going to be like what is going on you know even though if we explain it as well as we can I think as we saw with the parks Bond after they already voted on it and then we got the emails don't you raise my taxes and I'm like it wasn't me it was you um so uh so like that I I don't know if I'm going to have that convers more frequently um if we do it this way but just wanted to share that thank you yeah and I wanted to add just to lift up what council member Patton said I'd really like to see the language because that's what I'm thinking about when someone goes to the polls and City stuff is at the very end of a ballot and they're tired and they hadn't read about it and if it says I need money for transportation and parks and City facilities and you know all these things it's it's a hard thing to communicate and so that's that's my Fe is that we can't communicate it quickly enough effectively enough to get the goal you know met so that's where I just want to be really thoughtful and and I would be curious about other communities experience with these types of um yeah efforts and if they have seen success um how how did they achieve that sure go ahead uh just one additional comment uh council member Jones does make make a good point but I think as you go forward certain of these projects require staff and others don't uh for example a transportation Improvement a road a sidewalk a bike facility probably doesn't require staff but certainly police fire Parks will so I think it's helpful for the public to know that there is certain improvements that will require additional staff Solid Waste as City grows it's Enterprise fund so they grow to serve demand but for these you know it's important to provide these services but I think some require some additional cost yes rows should be maintained sidewalks but not to the level of a park so I think it's helpful that as we look at these Investments that the public understands no not everything will require additional operational cost some will so at least we uh as council members as we're asked saying yes this one may this one will not uh so I think that is helpful exercise if we go to this steady state model sure yeah no thank you for that feedback okay all right well um just real quickly then uh on behalf of budget and Management Services really Saudia hit these uh key dates uh your second uh budget work session is scheduled for Monday March 10th and your third budget work session is April 7th uh and then on May 20th uh budget and Management Services will present the city manager's proposed uh FY 26 operating budget as well as the 5-year Capital Improvement program and with that can go back to the dates again I'm sure it's on the schedule but just to make sure all right how do I go let's see oh gosh yep there we go May 20th okay have moment May 20th is and my wife's birthday so we just discussed what a wonderful gift romantic right thank you right so that concludes all of the staff presentations for today and the only note that I would add is part of the communication which was raised both um by a couple council members um in regards to bonds and what that predictability looked like we will also work with our County Partners because we have to take into consideration and coordination of when there would be school bonds and weight Tech bonds so that we don't push our voters into Bond fatigue we've already seen what that looks like fortunately not for Raleigh um and we don't want to be in that position but there will be lots of coordination with the county and the school system as well when we bring something forward so just a question for you um today was very helpful as a framework for the Capital Improvements I see we're going to get the Enterprise but will we see the proposed capital budget before May 20th or is that just embedded in the overall budget yes you will see it before May 20th we will in a manager briefing yes you will in a manager briefing but the overall package will me I just got a heart attack right there but uh not the finished product yes calm down Sadia um we it is typical each year we bring forward before we go public with the draft budget um some highlights in the um in a session with small groups so that you all will get a better understanding of the components of what goes into the full development of the budget so yes you'll get a sneak peek all right thank you all for all the work that went into this thank you and we are adjourned awesome [Music] he