Nov 12, 2025 Board Finance Committee

[00:00:02]

OKAY THANK YOU AND GOOD MORNING, ONE AND ALL.

[Roll Call]

WE ARE MEETING ON WEDNESDAY, NOVEMBER 12TH, 2025, AND WE'RE BEGINNING THE MEETING AT 11:05 A.M.

WOULD THE RECORDING CLERK PLEASE TAKE THE ROLL OF THE COMMITTEE.

DIRECTOR WAESPI. HERE. DIRECTOR MERCURIO. DIRECTOR.

CHAIR COFFEY. I AM HERE. JOHN IS ON A WELL-DESERVED VACATION AND WILL BE BACK IN TOWN SHORTLY.

GENERAL. GO AHEAD. GENERAL COUNCIL LYNNE BOURGAULT.

HERE. ASSISTANT GENERAL MANAGER DEBORAH SPAULDING.

HERE. TODAY'S MEETING IS BEING HELD PURSUANT TO THE BROWN ACT.

STAFF IS PROVIDING LIVE AUDIO AND VIDEO STREAM.

MEMBERS OF THE BOARD, OF THE PUBLIC WISHING TO MAKE A PUBLIC COMMENT MAY DO SO BY PROVIDING A COMMENT IN PERSON.

JOINING LIVE VIA ZOOM WITH THE LINK PROVIDED ON THE AGENDA.

LOCATED ON THE PARK DISTRICT WEBSITE. IF THERE ARE NO QUESTIONS ABOUT THE MEETING PROCEDURES, WE WILL BEGIN. ALL RIGHT THE NEXT ITEM ON OUR AGENDA IS APPROVAL OF MINUTES.

BUT THERE ARE NONE PRESENTED. IS THAT CORRECT? CORRECT. ALL RIGHT SO THAT MOVES US TO ITEM 3 WHICH IS PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA.

[Public Comments on Items Not on the Agenda]

WE DO HAVE SEVERAL EMAILS SUBMITTED AS PUBLIC COMMENT FOR THIS MEETING ON MATTERS NOT ON THE AGENDA.

ALL THREE OF THE EMAILS I'M LOOKING AT CONCERN THE TILDEN STEAM TRAIN.

DO WE HAVE PEOPLE PRESENT OR IN THE ZOOM ROOM THAT WISH TO MAKE PUBLIC COMMENTS ON ITEMS, NOT ON THE AGENDA.

NO PUBLIC COMMENTS. NOT ON THE AGENDA. NO. ALRIGHTY LOOK AROUND THE ROOM.

DON'T. DON'T SEE ANY ALRIGHT. THAT MOVES US TO AGENDA ITEM 4 AND ACTION ITEMS.

[Action Items]

IS THAT YOU, DEB? HI GOOD MORNING, DEB SPAULDING AGM OF FINANCE AND MANAGEMENT SERVICES.

NOT THAT ONE I PROBABLY TOLD YOU THE WRONG THING ALL RIGHT, SO AS USUAL, I'M GOING TO START OUT BY GIVING YOU AN OVERVIEW OF ALL OF THE DISTRICT'S INVESTMENTS.

AND THEN I'M GOING TO TURN IT OVER TO JUSTIN RESUELLO, WHO'S HERE FROM PFM.

THEY MANAGE THE MAJORITY OF THE PARK DISTRICT INVESTMENTS, BUT NOT EVERYTHING. SO THAT'S WHY YOU START OUT BY HEARING ME. SO THIS IS ALL IN YOUR PACKET. I BELIEVE IT'S ON PAGE 68, MAYBE 67, SOMEWHERE AROUND THERE.

AND SO WE'RE WALKING DOWN THE CHART IN YOUR PACKET, STARTING WITH YOUR LIQUIDITY PORTFOLIO.

THESE ARE THE FUNDS THAT ARE EITHER CASH OR READILY CONVERTIBLE TO CASH.

AND SO THE BIG CHANGE IN OUR PORTFOLIO IN THE IN THE THIRD QUARTER IS THAT WE'RE DRAWING DOWN ON OUR FUNDS AS WE'RE WAITING FOR OUR SECOND PROPERTY TAX INSTALLMENT THAT WE RECEIVE IN DECEMBER. SO THIS IS NORMAL FOR THE DISTRICT.

WE GET OUR PROPERTY TAXES IN APRIL AND DECEMBER.

SO DURING THE THIRD QUARTER WE'RE DRAWING DOWN ON THOSE FUNDS.

MOVING FURTHER DOWN ON THAT TABLE, THIS IS LOOKING AT OUR INVESTED SECURITIES.

AND SO THE TWO HIGHLIGHTS ARE THAT WE HAVE INCREASED INVESTMENTS IN TREASURIES AND DECREASED INVESTMENTS IN STATE AND LOCAL AGENCIES.

YOU'LL HEAR MORE ABOUT THIS FROM JUSTIN. BUT OVERALL INVESTED SECURITIES ARE ABOUT ON PAR WITH WHAT THEY WERE IN THE PRIOR QUARTER.

AND THEN LASTLY, LOOKING AT OUR FUNDS HELD IN TRUST.

SO THIS IS OUR PROJECT BOND FUNDS AND OUR DEBT SERVICE FUNDS.

AND YOU CAN SEE THAT WE'RE DRAWING DOWN ON OUR MEASURE AA FUNDS AND OUR PROMISSORY NOTES.

PROMISSORY NOTES IS FOR THE PROJECT ACROSS THE STREET THAT IS PLUGGING ALONG.

AND YOU CAN ALSO SEE OUR DEBT SERVICE FUNDS HAVE DECREASED FROM QUARTER TWO AS WE MADE OUR REQUIRED DEBT SERVICE PAYMENTS ON SEPTEMBER 1ST FOR MEASURE WW.

SO THAT CONCLUDES MY PART OF THE PRESENTATION.

AND I'M GOING TO TURN IT OVER TO JUSTIN. WE DO NEED A RECOMMENDATION FROM THE FINANCE COMMITTEE, OR WE WOULD LIKE A RECOMMENDATION FROM THE FINANCE COMMITTEE TO BRING THIS TO THE BOARD. ALL RIGHT.

THANK YOU

[00:05:01]

I THINK YOU ALREADY KNOW THAT. I'VE PURCHASED MY T-SHIRT FROM OAKLANDISH.

I BELIEVE THEY'RE SOLD OUT AT THIS TIME. SO IF YOU DIDN'T GET ONE HOPEFULLY THERE'S ANOTHER RUN FOR THE HOLIDAYS.

I THINK THEY'RE BEAUTIFUL SHIRTS. SO THANKS AGAIN FOR BEING FOR HAVING TIME WITH ME.

I'LL BE GOING OVER THE PERFORMANCE THROUGH SEPTEMBER 30TH. AS USUAL, YOU KNOW, IF THERE ARE QUESTIONS, I INVITE YOU TO JUST INTERRUPT OR CHIME IN. AS USUAL, WE PRESENT A CERTIFICATE OF COMPLIANCE THAT LETS EVERYONE REVIEWING THIS REPORT KNOW THAT THE INVESTMENT PORTFOLIO THAT WE MANAGE ON THE DISTRICT'S BEHALF IS MANAGED IN ACCORDANCE WITH THE INVESTMENT POLICY AND STATE CODE.

WITH RESPECT TO PORTFOLIO STATISTICS. HERE YOU CAN SEE KEY INFORMATION REGARDING THE INVESTMENT PORTFOLIO.

THE PROGRAM NOW STANDS AT $174.4 MILLION. THAT'S UP FROM $172.1 MILLION LAST QUARTER.

DURATION IS CONSERVATIVELY MANAGED TO THE BENCHMARK 1 TO 5 YEAR US TREASURY INDEX, AND IS 100% OF THAT AT THIS TIME, 2.48 YEARS YIELD AT COST THAT APPROXIMATES THE EARNINGS RATE LOOKING FORWARD AT THE END OF THE QUARTER, AND THAT WAS 4.33%. SO THAT'S THE YIELD THAT WE WOULD EXPECT ON THE PORTFOLIO IF WE HELD IT THROUGH THE DURATION OF THE HOLDINGS.

YIELD AT MARKET THAT REPRESENTS THE YIELD ON THE PORTFOLIO IF IT WAS SOLD ENTIRELY AT THE END OF THE QUARTER, THAT WAS 3.91% AS OF SEPTEMBER 30TH. CREDIT QUALITY AGAIN VERY CONSERVATIVELY MANAGED.

THAT NOW STANDS AT 66% AS OF THE SEPTEMBER QUARTER.

AND THAT'S UP TWO PERCENTAGE POINTS FROM LAST QUARTER.

AS DEB MENTIONED DURING HER INTRODUCTORY REMARKS A MOMENT AGO, YOU'LL SEE THAT SECTOR ALLOCATIONS ARE ABOUT THE SAME RELATIVE TO LAST QUARTER, BUT THERE HAS BEEN INCREASE TO US TREASURIES, WHICH NOW REFLECT 38% OF THE DISTRICT'S PORTFOLIO, UP FROM 35% LAST QUARTER, AS WELL AS A SLIGHT INCREASE TO AGENCY MORTGAGE BACKED SECURITIES 14% THIS QUARTER.

DURATION DISTRIBUTION CONTINUE TO BE OVERRATED OR OVERWEIGHT IN THE 0 TO 1 CATEGORY AS WE CONTINUE TO BENEFIT FROM THE INVERTED YIELD CURVE WITH ELEVATED OVERNIGHT RATES, BUT GENERALLY OTHER DURATIONS FURTHER OUT ON THE YIELD CURVE ARE IN LINE WITH THE BENCHMARK.

HERE YOU CAN SEE PORTFOLIO ACTIVITY. THE BLUE REFLECTS NEW PURCHASES, WHEREAS GRAY REFLECTS SALES AND MATURITIES.

IN TOTAL, ABOUT $20.1 MILLION IN NEW SECURITIES WERE PURCHASED FOR THE DISTRICT, BUT THE MAJORITY OF THOSE AS INDICATED BY THAT TOP BLUE BAR WERE US TREASURIES. THOSE TOTALED $17.59 MILLION, WITH MATURITIES OUT TO 2030 AND COUPONS AS HIGH AS 3.875. WITH RESPECT TO THE CORPORATE AND ASSET BACKED SECURITIES THAT YOU ALSO SEE ON THIS SLIDE, THE NAMES ARE ALL VERY FAMILIAR. THE CORPORATE NAMES ARE WELLS FARGO, PEPSI AND HOME DEPOT.

AND THOSE APPROXIMATED 18.2 MILLION. WHEREAS AMERICAN EXPRESS CREDIT CARD TRUST WAS PURCHASED IN THE AMOUNT OF ABOUT $720,000. ALL OF THOSE MATURING BEYOND 2029, WITH COUPON YIELD ABOVE 3.95% TO 4.3%. SO NICE, ATTRACTIVE SPREAD TO THOSE TREASURIES THAT I MENTIONED EARLIER.

WITH RESPECT TO PORTFOLIO PERFORMANCE YOU KNOW, I THINK THE KEY TAKEAWAY FROM THIS SLIDE IS THAT THE STRATEGY CONTINUES TO PERFORM QUITE WELL. THE 1 TO 5 YEAR US TREASURY INDEX IS HOW WE MEASURE THE PERFORMANCE OF THE DISTRICT'S PORTFOLIO.

AND YOU CAN SEE HERE INTEREST EARNED OF $1.7 MILLION, MARKET VALUE ADJUSTMENT POSITIVE OF $581,000.

AND TOTAL DOLLARS RETURNED THE SUM OF THOSE TWO PRIOR NUMBERS OF NEARLY $2.3 MILLION.

THAT REFLECTS TOTAL YIELD. THAT IS 1.33% DURING THE THREE MONTH PERIOD, AND THAT REPRESENTS OUTPERFORMANCE TO THE BENCHMARK OF 19 BASIS POINTS. THE ONE OTHER NOTE THAT I WOULD DRAW YOUR ATTENTION TO ARE THE INTEREST EARNINGS VALUES.

YOU CAN SEE HERE THAT THE THREE MONTH EARNINGS OF $1.7 MILLION OUTPACED PRIOR PERIODS.

SO IF YOU TAKE THESE ONE YEAR, THREE YEAR, FIVE YEAR AND TEN YEAR PERIODS ON A QUARTERLY BASIS,

[00:10:03]

SO AGAIN, THE STRATEGY IS WORKING QUITE WELL AS WE'VE BEEN ABLE TO LOCK IN HIGHER YIELDS, HIGHER COUPONS IN THE PREVIOUS QUARTERS.

ON AN ACCRUAL BASIS. WE ALSO SHOW RETURNS HERE.

THESE REFLECT THE SAME INTEREST EARNED ON THE PRIOR SLIDE, BUT ALSO SHOW REALIZED GAINS AND LOSSES, AS WELL AS CHANGE IN AMORTIZED COST. THOSE THE REALIZED LOSSES THAT WE'VE SEEN ON THIS SLIDE, BUT GENERALLY TOTAL EARNINGS DURING THE PERIODS HERE ARE ALL POSITIVE, GENERATING $26.8 MILLION OVER THE PAST TEN YEARS, AND THE INCEPTION DATE OF THE PORTFOLIO IS 2009.

ARE THERE ANY QUESTIONS HERE BEFORE I CONTINUE WITH THE SLIDES? NO THANKS THAT ARE NOT RATED? 5% NOT RATED. YEAH. IS THAT WE WHEN WE BUY THEM, THEY ARE RATED WITHIN OUR PARAMETERS AND THEN THEY FALL OUT OF FAVOR, SO TO SPEAK? NO, I THAT'S A GREAT QUESTION. WHAT I WOULD SAY AND CONFERRING WITH DEB HERE, AS I UNDERSTAND IT THE RATINGS THAT YOU'RE SEEING ON THIS SLIDE ARE S&P RATINGS. THERE ARE OTHER RATING AGENCIES THAT OFFER RATINGS ON THE HOLDINGS OF THE DISTRICT, AND THOSE MAY BE RATED BY MOODY'S OR FITCH RATINGS INSTEAD.

THOSE ARE NOT REFLECTED ON THIS SLIDE. SO IT'S NOT THAT THEY'RE NOT RATED.

THEY MAY BE A OR A, AA, BUT FROM SOME OTHER AGENCY? THAT'S RIGHT OR THE EQUIVALENT RATING AND GOVERNMENTAL STRATEGIES SURROUNDING HOW WE DEPLOY THE CORPUS.

AND ONE WAY WE MONITOR THAT IS THROUGH THIS SORT OF OVERLAY OF RISK RATINGS.

THE GOOD NEWS THIS QUARTER IS THAT THE RATED UNIVERSE CONTINUES TO BE STABLE.

ABOUT 62% OF THE DISTRICT'S HOLDINGS ARE COVERED BY THE ESG RISK RATINGS THAT WE UTILIZE WITH OUR THIRD PARTY SUSTAINALYTICS.

AND POSITIVELY, THE DISTRICT'S INVESTMENT PORTFOLIO ESG RISK RATING HAS IMPROVED TO 18.8, WHICH IS IN THE LOW CATEGORY, WHEREAS LAST QUARTER IT WAS 21.1 IN THE MEDIUM CATEGORY.

SO AS THE DURATION OF THE PORTFOLIO IS IN THAT TWO YEAR TIME FRAME.

WE SHOULD NOT BE SURPRISED TO SEE THIS ESG RISK RATING BOUNCE AROUND WITH RESPECT TO INDUSTRY EXPOSURES.

THERE ARE 16 DISTINCT INDUSTRIES THAT THE DISTRICT IS INVESTED IN.

THE BLUE BARS ON THIS CHART REPRESENT THE ESG RISK RATING, WHILE THE NUMBERS REPRESENT A LOWER ESG RISK AND THE PORTFOLIO WEIGHT BY INDUSTRY IS SHOWN BY THE BLACK DIAMONDS. THE DISTRICT'S GREATEST EXPOSURE IS AMONG BANKS, AND THOSE ACCOUNT FOR AROUND JUST UNDER 50% OF THE PORTFOLIO. AND THAT'S REALLY DUE TO THEIR VERY FREQUENT ISSUANCE IN THE FIXED INCOME MARKETS.

THE BANK INDUSTRY'S RISK RATING THAT IMPROVED THIS QUARTER TO 18.5 FROM 20.3 LAST QUARTER.

AND YOU CAN SEE THAT RIGHT HERE WITH RESPECT TO THE HIGHEST RISK RATING, THAT WAS AEROSPACE AND DEFENSE.

THAT IS 9.7 AT THE UPPER LEFT OF THE CHART, BUT THAT REFLECTS ONE SINGLE HOLDING LOCKHEED MARTIN WITH A SCORE OF 29.7 AND A PORTFOLIO WEIGHT OF 0.4%. JUST WITH RESPECT TO SECTOR ANALYSIS, JUST NOTE THAT THE WIDEST RANGE REALLY IS AMONG THOSE CORPORATE NOTES. MANY OF THE CDS AGENCY AND MORTGAGE BACKED SECURITIES GENERALLY SHOW LOWER RISK.

AND LET'S SEE HERE ASSET BACKED SECURITIES IS SLIGHTLY ELEVATED RELATIVE TO THE OTHER SECTORS ON THIS SLIDE, MAINLY BECAUSE THOSE ARE INVESTED IN OR RELATED TO AUTOMOBILES.

FINALLY HERE YOU CAN SEE SORT OF AGGREGATE MEASURE OF S&P RATINGS RELATIVE TO ESG RISK.

AND THE TOP GRAPH SHOWS RISK COMPOSITION BY BOND RATING IN AGGREGATE.

LOW ESG RISK RATED HOLDINGS ACCOUNT FOR NEARLY $50 MILLION OF THE DISTRICT'S PORTFOLIO AND AROUND $30 MILLION OF THE HIGHER CREDIT RATED AA AND AAA HOLDINGS. THE LOWEST ESG RISK RATING IS 18.5.

AMONG THOSE AA RATED HOLDINGS IN THE DISTRICT'S PORTFOLIO, THAT'S THE MAJORITY OF THE DISTRICT'S HOLDINGS.

I'LL PAUSE HERE TO SEE IF THERE ARE ANY QUESTIONS ABOUT ESG.

[00:15:01]

THAT'S GOOD ACTUALLY IF THERE ARE ANY OTHER QUESTIONS I'LL TURN IT OVER TO DEB AND I'LL STAND BY.

GENERALLY, ALL GOOD NEWS. YEAH. IF WE MUST TAKE NOTE, I AGREE. SO IF YOU HAVE NOTHING FURTHER TO ADD WE WILL MOVE TO A MOTION DENNIS. SURE. FOR A REFERRAL TO THE FULL BOARD FOR ACCEPTANCE.

I WOULD MOVE REFER THIS TO THE FULL BOARD FOR ACCEPTANCE.

I'LL SECOND THAT. ANY PUBLIC COMMENTS? NO PUBLIC COMMENTS.

ALL RIGHT, ALL IN FAVOR SAY AYE. AYE. PASSES.

NEXT ITEM UPS FINANCIAL REPORTS. THIS WILL ALSO BE AN ITEM WHERE WE WILL BE REQUESTED TO APPROVE THE REPORT AND REFER IT TO THE FULL BOARD.

AND TODAY I WILL BE PRESENTING THE THIRD QUARTER 2025 GENERAL FUND AND OTHER GOVERNMENTAL FUNDS FINANCIAL REPORTS.

GOOD MORNING AND THANK YOU. THANK YOU. SO FIRST OFF, LET'S START WITH THE SUMMARY OF THE GENERAL FUNDS REVENUES AND EXPENDITURES.

SO REVENUES CURRENTLY AS OF SEPTEMBER 30TH WE HAVE COLLECTED $125.9 MILLION, WHICH IS ROUGHLY 55.6% OF OUR BUDGET. WHILE OUR EXPENDITURES, WE'VE SO FAR SPENT $170.6 MILLION, WHICH REFLECTS 71% OF THE BUDGET. AND JUST LIKE WHAT DEB MENTIONED EARLIER, THIS IS VERY TYPICAL AT THIS TIME OF THE YEAR BECAUSE WE DON'T EXPECT TO RECEIVE THE SECOND PROPERTY TAX INSTALLMENT UNTIL DECEMBER.

SO RIGHT NOW, WE'RE JUST BASICALLY DIPPING INTO OUR FUND BALANCE TO BE ABLE TO SUPPORT OUR EXPENDITURES.

AND JUST LIKE WHAT MENTIONED WAS MENTIONED EARLIER.

THIS GRAPH JUST SHOWS THE PROPERTY TAX PROJECTIONS.

SO FOR THE FIRST THREE QUARTERS PRETTY MUCH THE ACTUAL RECEIPTS HAVE CLOSELY ALIGNED WITH OUR BUDGETED AMOUNTS.

AND AS YOU CAN SEE FOR THE LAST QUARTER, WHICH IS THE FOURTH QUARTER, WE HAVE A COMPARISON BETWEEN OUR BUDGETED AND PROJECTED, WHICH THERE'S JUST A VERY SLIGHT DIFFERENCE. AND THAT'S JUST PRIMARILY DUE TO THE REDEVELOPMENT REVENUES THAT WE'RE STILL RECEIVING.

AND IT'S VERY MUCH HARD TO PREDICT AND FORECAST BECAUSE IT'S VERY DEPENDENT ON THE INDIVIDUAL DISSOLUTION AGREEMENTS.

SO HERE YOU WOULD SEE THE GENERAL FUND REVENUES AND EXPENDITURES IN MORE DETAIL.

SO ON THE TOP PORTION OF IT, WE HAVE THE REVENUES.

AS YOU KNOW, OUR PROPERTY TAXES WOULD BE THE LARGEST SOURCE OF OUR REVENUE.

AND CURRENTLY, AS OF THE END OF THE THIRD QUARTER, WE HAD COLLECTED $101.2 MILLION, WHICH IS ABOUT 48%, 48.7% OF OUR BUDGET. AND AS YOU CAN SEE, IN COMPARISON TO THE SAME TIME PERIOD FROM LAST YEAR, WHICH IS AT 50.5%, BUT OVERALL, OUR TOTAL REVENUES SO FAR WE'VE COLLECTED 55.6%, WHICH IS VERY MUCH COMPARABLE TO LAST YEAR'S 56.5%. NOW, LOOKING AT THE OTHER REVENUE ITEMS WE DO HAVE I WANT TO EMPHASIZE THE INVESTMENT EARNINGS AND OTHERS, WHICH AS WHAT JESSE JUST SHOWN EARLIER, WE GOT LIKE SOLID INVESTMENT EARNINGS WHICH POSTED OUT OF THAT $13.7 MILLION, WE'VE HAD REPORTED $11.6 MILLION IN OUR INVESTMENT EARNINGS ALONE.

SO WE'RE DEFINITELY LIKE IN A GREAT TRAJECTORY.

SINCE WE HAVEN'T EVEN POSTED FOURTH QUARTER. AND THEN ALSO FOR OUR PROPERTY USAGE, AS YOU CAN SEE WE'VE SO FAR COLLECTED 99.7% OF OUR BUDGET, WHICH MEANS WE PROJECTED IT TO BE EXCEEDING OUR BUDGETED AMOUNT FOR THE PROPERTY USAGE.

AND THAT'S PRIMARILY DUE TO THE RATE INCREASE ON OUR GRAZING LEASES.

[00:20:05]

SO HERE YOU WOULD SEE OUR SALARIES AND BENEFITS TOTALING TO $103.4 MILLION, WHICH IS ROUGHLY 69.8% OF THE BUDGET WHEN COMPARED TO LAST YEAR'S BUDGET OF 73.3%.

AND ALL THE OTHER ONES SUCH AS SUPPLIES, SERVICES, CAPITAL OUTLAY, THEY LOOK, I MEAN, RIGHT NOW AT THIRD QUARTER, WE DO EXPECT IT TO BE AROUND 70% TO 75%. BUT AS YOU CAN SEE HERE, WE'RE SEEMS TO BE LIKE NOT SPENDING MUCH.

BUT THAT'S JUST A TIMING ISSUE. BECAUSE IF WE FACTOR IN OUR ENCUMBRANCES AND WE STILL HAVE ONE MORE QUARTER TO PAY OFF OUR INVOICES, WE SHOULD BE WITHIN TARGET. SO THERE'S NOTHING CONCERNING ABOUT THAT AT THIS POINT.

AND THEN OUR INTERFUND CHARGES ARE ALWAYS AT 75%, LIKE IT IS EVERY QUARTER THAT WE DO OUR TRANSFER TO OUR ISF. SO THAT'S ALWAYS BEEN VERY MUCH ON THE ON THE T WHEN IT COMES TO LIKE THE 75%.

AND THEN FOR THE FOURTH QUARTER, WE DO EXPECT THAT TO BE 100%.

AND SIMILARLY FOR OUR TRANSFERS OUT ONCE WE COMPLETE THE BUDGET, WE DO THE TRANSFER.

SO THAT'S WHY IT'S REFLECTED 100%. AND THEN HERE ON THIS SLIDE, IT'S STILL WITHIN THE GENERAL FUND.

WE DO BREAK OUT THE EXPENDITURES BY DIVISION.

SO ON I BELIEVE PAGE 93 OF YOUR PACKET ATTACHMENT A WE PROVIDED ADDITIONAL DETAILS AND EXPLANATIONS ON ANY VARIANCES THAT'S 10% HIGHER OR LOWER. BUT TO SUMMARIZE BASICALLY THE DIFFERENCES, IT'S JUST REALLY THE TIMING ISSUE OF SPENDING THE THE BUDGETED AMOUNTS AS WE'RE STILL IN THE PROCESS OF LIKE PAYING THE INVOICES.

SO HOPEFULLY WHEN WE PRESENT THE FOURTH QUARTER WILL BE VERY MUCH CLOSE TO THE BUDGETED AMOUNTS, WHICH HOPEFULLY IT'S GOING TO BE AROUND 90% TO 100% OF THE BUDGETED AMOUNTS.

AND THEN IN THIS GRAPH, YOU WOULD SEE THAT IN THE PAST FIVE YEARS THE DISTRICT HAS BEEN STILL HAVING SHOWN AN INCREASE IN OUR TOTAL REVENUES GIVEN THAT OUR INVESTMENT EARNINGS ARE NOT BUDGETED.

SO AS YOU CAN SEE, IT'S LOOKS LIKE THE SLOPE FOR 2025 IS LOWER THAN 2024.

BUT KNOWING THAT WE DID HAVE LIKE SOLID INVESTMENT EARNINGS AS OF THIRD QUARTER, I DO EXPECT THAT TO BE HIGHER THAN 2024, PROVIDED OUR PROPERTY TAXES WOULD STILL SHOW A STEADY INCREASE.

SO AS YOU CAN SEE HERE IN 2024, THE INCREASE IN PROPERTY TAXES WAS MORE MODERATE COMPARED TO PREVIOUS YEARS.

AND THAT'S A SIMILAR TREND IN 2025, WHERE WE EXPECT TO SEE JUST A MODEST GROWTH IN RSS PROPERTY THE VALUES.

ON THE EXPENDITURE SIDE, AS YOU ALL KNOW, THE COST HAS RISEN UP SIGNIFICANTLY AND THAT'S JUST PRIMARILY DUE TO INFLATION AND HIGHER PRICES OF GOODS AND SERVICES. FOR 2025, WE DO EXPECT OUR TOTAL EXPENDITURES TO BE SLIGHTLY LOWER THAN 2024 LEVELS, WHILE OUR SALARIES AND BENEFITS, WHICH IS OUR LARGEST EXPENDITURE WE'RE EXPECTING TO SEE A RISE MODESTLY DUE TO THE ANTICIPATED COLA.

SO FOR THE REST OF THE YEAR, WE STILL HAVE ONE MORE COLA, WHICH IS 1% FOR OUR AFSCME AND UNREPRESENTED.

AND THEN I'LL JUST GO OVER TO OUR OTHER GOVERNMENTAL FUNDS.

SO WE DO HAVE ON YOUR ATTACHMENT B, PAGE 94 SOME VARIANCES ON THE BUDGETED AND THEN THE ACTUAL AMOUNTS FOR OUR SPECIAL REVENUE FUNDS, WHICH INCLUDES MEASURE FF.

LLD FUNDS, CFDS, ZONE OF BENEFITS AND MEASURE WW LOCAL GRANTS.

AND THEN WE ALSO HAVE OUR PROJECT FUNDS, WHICH AS YOU CAN SEE HERE THE TOTAL REVENUES AND EXPENDITURES ARE WAY OVER THE BUDGET. AND IT'S JUST PRIMARILY DUE TO THE TIMING OF WHEN THESE BUDGETED AMOUNT AMOUNTS ARE ACTUALLY SPENT BECAUSE MOST PROJECTS SPEND FOR MULTIPLE OF YEARS. SO WE ALSO HAVE THE DEBT SERVICE FUNDS, WHICH ARE EXPENDITURES RELATED TO SCHEDULED DEBT SERVICE PAYMENTS FOR OUR MEASURE WW BONDS AS WELL AS OUR PROMISSORY NOTES.

AND LASTLY, WE HAVE THE ISF WHICH INCLUDES OUR WORKERS COMP, GENERAL LIABILITY, EMPLOYEE BENEFITS,

[00:25:03]

AND WE ARE REQUESTING TO DIRECT THE STAFF TO SUBMIT THE THIRD QUARTER 2025.

GENERAL FUND AND OTHER GOVERNMENTAL FUNDS. FINANCIAL REPORT TO THE BOARD OF DIRECTORS FOR FAVORABLE CONSIDERATION.

SO IF YOU GUYS HAVE ANY QUESTIONS. DIRECTOR YES THANK YOU FOR THE REPORT. IT'S ENCOURAGING TO KNOW THAT WE'RE GOING TO GET A BIG CHECK IN DECEMBER.

I'M LOOKING AT THE GENERAL FUND QUARTERLY FINANCIAL REPORT, AND IT SHOWS THE BOARD OF DIRECTORS EXPENDITURES ARE REALLY, REALLY LOW. AND IT SUGGESTS THAT THE REASON IS DUE TO THE NON ALLOCATION OF SPONSORSHIP CONTINGENCY AND COMPUTER FUNDS.

I CAN'T REMEMBER WHY OR HOW SPONSORSHIPS WHICH WERE RECOMMENDED OR TRADITIONALLY RECOMMENDED BY THE BOARD, BUT I DON'T KNOW HOW THEY'RE FUNDED AND WHAT, WHAT ARE WE MISSING? WHAT? WHAT IS? HOW WAS THERE A SAVINGS OR HOW HAVEN'T WE SPENT THIS MONEY ON SPONSORSHIPS? I'LL TAKE THAT ONE. LET US DIG INTO THE SPONSORSHIPS.

WHAT'S BEEN SPENT TO DATE. I BELIEVE THERE ARE CERTAIN SPONSORSHIPS THAT THE BOARD DOES EVERY YEAR.

AND SO IT COULD JUST BE A TIMING ISSUE OR MAYBE THERE WAS A CHANGE THIS YEAR, BUT WE'LL LOOK INTO IT FOR SPONSORSHIPS.

CONTINGENCY IS ANOTHER PIECE OF THAT PUZZLE. SO THE BOARD OPERATING GUIDELINES SAY THAT IF THE BOARD WANTS TO APPROPRIATE ITS CONTINGENCY FUNDS ABOVE $5,000, I BELIEVE IT NEEDS TO BE DONE BY BOARD ACTION.

BUT THAT'S WRITTEN OUT IN THE BOARD OPERATING GUIDELINES.

SO I CAN SEND THAT TO YOU AS WELL.

YEAH, YEAH. AND LYNNE IS REMINDING ME A LOT OF THE SPONSORSHIP FUNDS ARE COMING FROM THE GENERAL MANAGER'S BUDGET.

SO THERE'S TWO FUNDING SOURCES FOR SPONSORSHIPS.

THE BOARD HAS THEIR ALLOCATION AND THEN THE GM'S OFFICE HAS AN ALLOCATION SO.

SO IT SOUNDS LIKE AN END OF YEAR RECONCILIATION WE NEED TO MAKE.

YEAH.

ALL RIGHT THANK YOU. THANK YOU. THANK YOU VERY MUCH.

SO WE NEED A MOTION TO ACCEPT THE THIRD QUARTER GENERAL FUND AND OTHER GOVERNMENTAL FUNDS, FINANCIAL REPORT AND TO RECOMMEND OR AT LEAST REFER IT TO THE FULL BOARD.

IS THAT YOUR MOTION? THAT IS MY MOTION. ALL RIGHT [LAUGHTER] AND I WILL SECOND IT.

IT'S MOVED AND SECONDED. ARE THERE ANY PUBLIC COMMENTS ON THIS AGENDA ITEM? NO PUBLIC COMMENTS ON THIS AGENDA ITEM. ALL RIGHT.

SO WE'LL TAKE A VOTE. ALL IN FAVOR SAY AYE. AYE.

IT PASSES. THANK YOU PROPOSED OPERATING PROJECT AND PROGRAM BUDGET.

THANK YOU I'M GOING TO KICK OFF THIS PRESENTATION. BRANDY WAS GOING TO TAKE A PIECE OF THIS, BUT SHE'S OUT TODAY, SO I'M GOING TO TAKE THE WHOLE THING THE FIRST HALF OF IT, THE OPERATING PART OF THE BUDGET, AND THEN TURN IT OVER TO KATIE TO PRESENT THE PROJECT BUDGET.

AND BEFORE I BEGIN, I'LL JUST SAY WE ARE PRESENTING THE BUDGET TO YOU AS IT HAS BEEN LAID OUT IN THE BOOK.

WE VERY MUCH UNDERSTAND THAT THERE ARE CHANGES THAT ARE BEING DISCUSSED.

SO WHAT WE'RE TALKING THROUGH IS JUST WHAT'S IN THE BOOK RIGHT NOW. AND WE'RE TRYING TO GET YOUR FEEDBACK SO THAT WE CAN GET A GOOD RECOMMENDATION TO BRING FORWARD.

ULTIMATELY, AT THE DECEMBER MEETING, WHEN YOU GUYS APPROVE THIS, THE SECOND BOARD MEETING IN DECEMBER. SO WHAT YOU'RE GOING TO HEAR TODAY IS THE IS WHAT'S IN THE BOOK. ALL RIGHT WITHOUT FURTHER ADO. SO WE HAVE THIS ANNUAL BUDGET CYCLE, WHICH YOU GUYS ARE BOTH PRETTY FAMILIAR WITH.

FIRST HALF OF THE YEAR, WE'RE WORKING ON DEVELOPING OUR REVENUE, EXPECTATIONS, FIGURING OUT WHAT NEEDS TO BE IN OUR BASE BUDGET.

WE THEN GIVE THE DEPARTMENTS AND DIVISIONS A SENSE OF WHAT OUR BUDGET PICTURE IS LOOKING LIKE FOR THE COMING YEAR, AND THEY PUT IN THEIR BUDGET REQUESTS. WE THEN WORK WITH THE GM'S OFFICE TO COME UP WITH A PROPOSED BUDGET, WHICH WE PRESENT TO THE FINANCE COMMITTEE, TO THE PARK ADVISORY COMMITTEE AND TO THE BOARD.

AND THIS YEAR, FOR THE FIRST TIME, WE ADDED TWO ADDITIONAL MEETINGS IN NOVEMBER WHERE AGMS ARE PRESENTING THEIR RECOMMENDATIONS AND WHAT'S IN THEIR

[00:30:02]

AND THEN THE BUDGET GETS ADOPTED AS OF JANUARY 1ST, IT'S IN EFFECT, AND THEN WE'RE JUST BEGINNING THE CYCLE ALL OVER AGAIN.

HERE'S OUR MISSION STATEMENT. SO THE EAST BAY REGIONAL PARK DISTRICT PRESERVES A RICH HERITAGE OF NATURAL AND CULTURAL RESOURCES AND PROVIDES OPEN SPACE, PARKS, TRAILS, SAFE AND HEALTHFUL RECREATION AND ENVIRONMENTAL EDUCATION AND ENVIRONMENTAL ETHIC GUIDES, THE DISTRICT AND ALL THAT WE DO. THESE ARE THE BOARD PRIORITIES THAT WE PICKED UP FROM THE BOARD STUDY SESSION.

SO WE TRIED TO LIKE, HONE IT DOWN TO JUST A FEW THINGS.

OBVIOUSLY, THERE ARE A LOT OF A LOT OF IDEAS THAT COME OUT OF THOSE BOARD STUDY SESSIONS. SO A LOT OF DISCUSSION ABOUT INCREASED COMMITMENT TO TRAIL DEVELOPMENT AND MAINTENANCE, CONTINUING LAND ACQUISITION, CONTINUING TO WORK TO OPEN NEW PARK LANDS EMPHASIS ON SUSTAINABILITY IN ACROSS THE WHOLE DISTRICT.

PURCHASING, RECYCLING, ENERGY EFFICIENCY AND RESOURCE CONSERVATION, CONTINUED EMPHASIS ON EQUITY AND INCLUSION AND COMMUNITY ENGAGEMENT, AND CONTINUING OUR WORK ON FUELS MANAGEMENT AND WILDFIRE PREVENTION.

SO NOW I'M JUST GOING TO TALK THROUGH VARIOUS WAYS IN WHICH THOSE BOARD PRIORITIES ARE CARRIED OUT.

SOME OF THESE ARE IN THE BUDGET AS LIKE SPECIFIC BUDGET PROPOSALS.

SOME OF THEM ARE THINGS THAT ARE LIKE IN PROGRESS, BUT JUST TO WALK THROUGH ALL OF THOSE ITEMS. SO COMMUNITY INPUT WE HAVE. OH NO SORRY THAT'S THE WRONG SLIDE I'M TALKING ABOUT OKAY.

THIS SLIDE IS TALKING ABOUT WHAT INPUT WE GET FROM THE PUBLIC.

SO WE HAVE COMMUNITY INPUT THAT WE RECEIVE ANNUALLY THE GOVERNMENT AND LEGISLATIVE TEAM DOES A SURVEY.

WE GET THAT INFORMATION. THERE'S ALSO INFORMATION COMING IN CONSTANTLY THROUGH PUBLIC MEETINGS AND OTHER COMMUNICATION CHANNELS.

AND THEN WE ALSO GET INFORMATION FROM DIVISIONS.

THE AGMS DO THEIR CURRENT STATE OF THE DIVISIONS TO THE BOARD STUDY SESSION.

AND THEN THE MOST DETAILED WAY IS THAT DIVISION STAFF ARE ENTERING THEIR BUDGET REQUESTS INTO THE FINANCE SYSTEM, AND THEN WE'RE ABLE TO SEE HOW THOSE ARE PRIORITIZED BY THE AGMS. SO AS I MENTIONED EARLIER, WE PROVIDE THIS FRAMEWORK TO THE DIVISIONS ABOUT WHAT OUR EXPECTATION IS FOR THE COMING YEAR.

AND THEN STAFF PROVIDE US WITH THEIR BUDGET REQUESTS BASED ON THAT FRAMEWORK. SO THIS YEAR WE SAID IT'S GOING TO BE A LEAN YEAR.

SO WE ENCOURAGE STAFF TO, YOU KNOW, NOT GIVE US THE WHOLE KITCHEN SINK, BUT REALLY REFINE THEIR REQUESTS BASED ON WHAT OUR REVENUE EXPECTATIONS WERE.

THE AGMS THEN PRIORITIZED THEIR REQUESTS AND PRESENT THEIR DIVISION PROPOSALS TO THE GM'S OFFICE AND TO FINANCE STAFF.

SO WE TAKE ALL THAT INFORMATION. WE DECIDE WHAT CAN BE FIT INTO THE BUDGET, WHAT SHOULD BE PUT IN THE BUDGET BASED ON THE PRIORITIES, AND THEN PRESENT IT TO THE FINANCE COMMITTEE FOR RECOMMENDATION AND THEN TO THE BOARD IN DECEMBER.

THIS YEAR WE'RE DOING THOSE ADDITIONAL INDIVIDUAL DIVISION PRESENTATIONS TO THE BOARD, AND THEN WE HAVE THE PUBLIC HEARING AT THE FIRST MEETING IN DECEMBER, AND THEN THE BOARD ADOPTS THE BUDGET AT THEIR SECOND MEETING IN DECEMBER. WE NEED A NEW BUDGET IN PLACE BY JANUARY 1ST.

WE HAVE BUDGET BALANCING PRINCIPLES THAT WE TRY TO KEEP IN MIND.

NUMBER 1 IS JUST CREATING A FINANCIALLY SUSTAINABLE ORGANIZATION.

SECONDLY, WE HAVE THIS MISSION TO RESTORE, PRESERVE AND PROTECT SCENIC, NATURAL AND CULTURAL RESOURCES IN A CHANGING CLIMATE.

WE WANT TO PROTECT OUR EMPLOYEES INVESTING IN THEIR FUTURE RETIREMENT, CURRENT WELL-BEING AND PROFESSIONAL DEVELOPMENT.

WE NEED TO ADDRESS ANY LEGAL AND REGULATORY MANAGEMENT MANDATES, AND THEN SERVE PROGRAMMATIC AND PLAN NEEDS TOWARDS VISION ACHIEVEMENT, AND THEN MAKE SURE WE'RE MAINTAINING WHAT WE ALREADY HAVE OUR EXISTING PARKS AND FACILITIES.

GETTING INTO THE DETAILS OF REVENUE EXPECTATIONS YOU'VE HEARD THIS ALREADY QUITE A FEW TIMES, BUT OUR PROPERTY TAXES ARE PROJECTED BY, WE KNOW FOR THE FIRST HALF OF THE YEAR WHAT OUR PROPERTY TAXES WILL BE.

WE USE A FIRM CALLED BEACON ECONOMICS TO PROJECT THE SECOND HALF OF THE YEAR.

PUT THOSE TWO PIECES TOGETHER AND WE ARE BUDGETING FOR A 3.3% INCREASE IN PROPERTY TAXES IN 2026, WHICH IS SLIGHTLY LOWER THAN WHAT WE'VE HAD IN PRIOR YEARS.

WE ALSO HAVE FEES AND CHARGES, WHICH ARE A RELATIVELY SMALL PERCENT OF OUR BUDGET, BUT STILL CRITICAL.

THERE WAS A FEE STUDY COMPLETED IN 2024, AND THE OPERATIONS TEAM IS USING THAT TO INFORM THEIR DECISIONS ABOUT WHAT FEES WE SHOULD PUT FORWARD.

AND SO WE BUILD THOSE INTO OUR REVENUE EXPECTATIONS FOR THE COMING YEAR.

AND THEN WE HAVE, IN ADDITION TO THOSE PROPERTY TAXES AND FEES AND CHARGES ARE PART OF OUR GENERAL FUND REVENUE.

WE HAVE OTHER FUNDS THAT ALL HAVE REVENUE EXPECTATIONS AND DIFFERENT LITTLE PIECES THAT INFORM HOW WE BUDGET THOSE REVENUES AND EXPENDITURES.

SO FOR INTERNAL SERVICE FUNDS, WE HAVE KNOWN EXPENDITURES.

SO WE HAVE TO SOMETIMES BUMP UP OUR INTERNAL SERVICE FUND REVENUE BASED ON THOSE NEEDS.

OUR SPECIAL REVENUE FUNDS WE GET OUR ENGINEERS REPORTS AND THAT TELLS US HOW MUCH REVENUE WE RECEIVE.

AND THEN WE HAVE DEBT SERVICE REQUIREMENTS PER OUR BOND OBLIGATIONS.

[00:35:03]

IT'S A MIXED MARKET THAT DOESN'T NECESSARILY TRANSLATE RIGHT AWAY INTO THE PROPERTY TAXES WE RECEIVE NEXT YEAR, FOR INSTANCE. IS THERE A LAG TO THAT? AND I'M TRYING TO REMEMBER WHAT IT IS.

YEAH LET ME SEE IF I CAN EXPLAIN THIS CLEARLY. THERE'S A LAG BECAUSE WE'RE ON A CALENDAR YEAR, WHEREAS ALMOST ALL OTHER LOCAL GOVERNMENTS ARE ON A FISCAL YEAR.

SO THE INFORMATION THAT WE GET FROM THE TWO COUNTIES WE'RE GETTING FOR THE FIRST HALF OF THE YEAR, AND WE DON'T KNOW WHAT THE SECOND HALF OF THE YEAR REVENUE IS GOING TO BE FOR A LITTLE WHILE.

SO WE'RE USING BEACON TO PROJECT THAT ON THE COUNTY SIDE OF THINGS.

THEY ARE TAKING INTO ACCOUNT WHAT HOME SALES HAVE HAPPENED AND THEY HAVE LIKE A LOOK BACK PERIOD WHERE THEY'RE REVIEWING SALES THAT HAVE HAPPENED IN THE PAST YEAR. SOMETIMES THEY'RE MAKING CHANGES. IF PEOPLE HAVE PUT IN A REQUEST TO, LIKE, REASSESS THE VALUE.

SO THERE'S A LAG FROM THE COUNTY AS WELL. SO ALL THAT TOGETHER, IT'S LIKE SORT OF A SLOW MOVING TRAIN.

IF PROPERTY VALUES ARE GOING UP, WE'RE A LITTLE BIT LOWER TO SHOW THAT A SLOWER TO SHOW THAT IN OUR BUDGET THAN, THAN ANOTHER AGENCY WOULD BE BECAUSE THEY'RE ON A FISCAL YEAR BASIS. SO THEY KNOW RIGHT AWAY WHAT THE CHANGE IS GOING TO BE. DOES THAT MAKE SENSE? YEAH, IT MAKES SENSE. I'M JUST CHECK MY MEMORY. I SEEM TO RECALL IT BEING DESCRIBED AS A 2 TO 3 YEAR LAG.

IN OTHER WORDS, BEFORE IT ACTUALLY IMPACTS OUR PROPERTY TAX VALUES.

YEAH, I DON'T KNOW IF I'VE HEARD IT THAT SLOW, BUT I'D SAY IT'S A COUPLE YEARS.

COUPLE YEARS WHY IS OUR FISCAL YEAR FROM JANUARY TO DECEMBER [LAUGHTER], IF EVERYONE ELSE IS.

RIGHT THAT'S EXACTLY WHAT I ASKED AT MY INTERVIEW. I HAVE BEEN TOLD THAT IT'S BECAUSE WE ARE A PARK DISTRICT AND THE VAST MAJORITY OF OUR EXPENDITURES HAPPEN IN THE SUMMER, AND SO YOU WOULDN'T WANT TO BE BUILDING A BUDGET IN THE MIDDLE OF YOUR BUSIEST SEASON.

AND SO I THINK THAT THAT MAKES AS MUCH SENSE AS ANY EXPLANATION I'VE EVER HEARD.

CLEARLY, IT'S HOW WE'VE DONE IT, LIKE FOR AGES.

LIKE YOU CAN GO BACK INTO THE ARCHIVES AND SEE WE'VE BEEN ON THIS CALENDAR YEAR BASIS FOREVER.

WE HAVE DISCUSSED LIKE, WHAT WOULD IT TAKE TO CHANGE THAT? AND I THINK IT WOULD TAKE US ADOPTING LIKE A ONE AND A HALF YEAR BUDGET, WHICH WOULD BE A LITTLE UNUSUAL, BUT IT COULD BE DONE IF WE WANTED TO DO THAT, IF THAT'S WHERE YOU WERE GOING, OR IF YOU WERE JUST CURIOUS I MEAN, I'VE HEARD THAT FOR YEARS. AND BEING THE OLD STICK IN THE MUD THAT ALWAYS REFERS TO TRADITION, YOU KNOW, I WAS ALWAYS TOLD, OH, THE SUMMER FOCUS. WELL, WE'VE ALL AGREED, INCLUDING FIRE.

THERE IS NO SUMMER FOCUS ANYMORE IT'S ALL YEAR LONG WE USED TO HAVE NINE MONTH PARK RANGERS, SIX MONTH PARK RANGERS, AND PEOPLE WOULD WORK LIKE THAT. NOW THEY'VE ALL BEEN. WE SAY WE NEED TO 12 MONTHS A YEAR IT'S. SO JUST, YOU KNOW, NOT TODAY, BUT IN THE FUTURE.

OKAY RIGHT. OKAY, NOW I'M GOING TO GET INTO THE NUMBERS A LITTLE MORE SPECIFICALLY.

SO WE HAVE A BALANCED BUDGET INCLUDING USE OF FUND BALANCE WITH PLANNED EXPENDITURES FROM ALL FUNDS TOTALING $375.8 MILLION.

LOOKING AT THE RESOURCES, WE HAVE REVENUES OF $284.7 MILLION.

THERE'S A LITTLE ASTERISK THERE IF YOU INCLUDE THE TRANSFERS IN, WHICH ARE REVENUES COMING FROM OTHER FUNDS, THEN OUR TOTAL RESOURCES ARE $375.8 MILLION. SO TAXES AND ASSESSMENTS MAKE UP $230.5 MILLION.

FEES AND CHARGES $49.3 MILLION. PROPERTY USAGE $3.4 MILLION.

GRANTS AND INTERAGENCY ONLY $0.4 MILLION. AGAIN, THIS IS LOOKING AT JUST OUR OPERATING BUDGET.

SO WE GET A LOT OF GRANTS THAT COME IN DURING THE YEAR, BUT WE DON'T KNOW THEM AS OF THE TIME OF BUDGET ADOPTION.

SO WE'RE NOT BUILDING THEM INTO OUR BUDGET RIGHT NOW. SO JUST $0.4 MILLION WHICH IS NOT A REFLECTION ON ANY GRANTS THAT ARE OUT THERE THAT WE EXPECT TO RECEIVE.

AND THEN MISCELLANEOUS REVENUE $1 MILLION. THIS IS JUST A PICTORIAL REPRESENTATION OF THAT.

SO YOU CAN SEE TAXES AND ASSESSMENTS ARE 81% OF OUR TOTAL REVENUE.

AND THEN THE NEXT BIGGEST IS INTERNAL SERVICE FUND CHARGES, THEN CHARGES FOR SERVICES, PROPERTY USAGE AND MISCELLANEOUS AND THEN INTERAGENCY AGREEMENTS. NOW LOOKING AT THE EXPENDITURE SIDE, TOTAL APPROPRIATIONS IS $375.8 MILLION.

[00:40:05]

INTERNAL SERVICE FUNDS $40 MILLION. SPECIAL REVENUE $13.1 MILLION.

AND DEBT SERVICE $17.9 MILLION. AND AGAIN, JUST A VISUAL REPRESENTATION OF THAT.

SO YOU CAN SEE THE GENERAL FUND IS 51% OF OUR BUDGET.

PROJECT FUNDS ARE THE NEXT BIGGEST CHUNK. AND THEN WE HAVE OUR INTERNAL SERVICE FUNDS, OUR SPECIAL REVENUE AND DEBT SERVICE FUNDS, AND OUR PERMANENT FUNDS. AND THEN THIS BOTTOM GRAPH IS SHOWING A COMPARISON OF CURRENT YEAR APPROPRIATIONS TO PRIOR TO 2025. SORRY TO NEXT YEAR'S APPROPRIATIONS. AND YOU CAN SEE THAT FOR THE MOST PART, OUR APPROPRIATIONS THAT WE'RE PROPOSING FOR 2026, VERY MUCH IN LINE WITH WHAT WE DID FOR 2025, WITH THE EXCEPTION OF THE PROJECT FUNDS, WHERE WE HAVE PROPOSED APPROPRIATING SUBSTANTIALLY MORE THAN WE HAVE IN THE PRIOR YEAR.

AND THEN YET ANOTHER PICTURE. THIS IS APPROPRIATIONS BY TYPE.

SO PERSONNEL COSTS ARE 49% OF OUR BUDGET, FOLLOWED BY SUPPLIES AND SERVICES AT 20%.

THEN OUR CAPITAL OUTLAY BUDGET 18%, INTRA DISTRICT SERVICES 8%, DEBT SERVICE 5% AND THEN INTERAGENCY AGREEMENTS LESS THAN 1% THERE. THIS IS A SLIDE THAT WE PUT TOGETHER IN RESPONSE TO A BOARD REQUEST TO GET A BETTER PICTURE OF HOW OUR EXPENDITURES AND REVENUES HAVE BEEN CHANGING OVER TIME. SO THEY WANTED A FIVE YEAR LOOK BACK.

AND SO WALKING YOU THROUGH THIS. MAYBE WE'LL START WITH THE RED LINE ON TOP, WHICH IS OUR REVENUES.

SO YOU CAN SEE IT'S KIND OF SIMILAR TO THE GRAPH THAT KAREN WAS SHOWING EARLIER.

SO OUR REVENUES GOING UP MORE STEEPLY IN, YOU KNOW, 2022, 2023, 2024, IT STARTS TO LEVEL OFF NOW THEN 2025 AND 2026, THOSE ARE JUST OUR BUDGETED.

SO THE RED LINE WE DREW THERE IS WHAT WE'VE BUDGETED.

WE DO EXPECT OUR REVENUE TO COME IN SLIGHTLY ABOVE BUDGET FOR 2025.

BASED ON THE FACT THAT WE DON'T BUDGET FOR OUR INVESTMENT EARNINGS.

YOU JUST HEARD THAT THOSE ARE COMING IN QUITE WELL, BUT WHAT'S BUDGETED IS SHOWING THIS LIKE ALMOST DECREASING LOOKING LINE.

AND THEN IF YOU GO FROM 2025 TO 2026 IT'S A REALLY MILD INCREASE FROM LIKE IF YOU COMPARE THAT SLOPE TO THE TO THE PRIOR YEARS.

AND THEN THE OTHER PIECE TO WALK THROUGH HERE IS JUST THE THE SIZE OF THE DIFFERENT BARS AND WHAT MAKES UP THOSE BARS.

SO YOU CAN SEE THE BOTTOM PORTION OF EACH BAR IS THAT LIGHT BLUE IS SALARY AND BENEFITS.

AND YOU CAN SEE HOW IN 2022, 2023, 2024, WE WERE ADDING NEW POSITIONS.

TAKES A LITTLE WHILE TO FUND THOSE POSITIONS TO FILL THOSE POSITIONS.

SO ALSO UP THROUGH 2024, THAT'S OUR ACTUAL EXPENDITURES.

AND YOU CAN SEE THAT IT'S STARTING TO CLIMB UP A LITTLE BIT.

AND THEN 2025, 2026 WE'RE HOLDING STEADY ON THE SALARY AND BENEFITS.

BUT BECAUSE OUR REVENUES AREN'T GOING UP QUITE AS STEEPLY AS THEY WERE IN THE PAST, LIKE THOSE BARS IN TOTAL HAVE TO STAY PRETTY SOLIDLY TO WHERE WE WERE IN 2025. I HOPE THAT WAS HELPFUL.

DEB. YEAH. WHY, IN THE LAST SEVERAL YEARS, HAVE CAPITAL OUTLAYS DISAPPEARED FROM THE GENERAL FUND APPROPRIATIONS? AH GOO QUESTION IN 2023, WE MADE OUR INTERNAL SERVICE FUND FOR EQUIPMENT INTO A TRUE INTERNAL SERVICE FUND SO THAT ALL EQUIPMENT PURCHASES ARE HAPPENING OUT OF THAT FUND.

SO YOU'RE NOT SEEING THEM IN THE GENERAL FUND ANYMORE. SO THAT'S WHAT THOSE CAPITAL OUTLAYS WERE.

SO THAT'S WHERE THEY WERE AS OF 22? YEAH. AND NOW THEY'RE THEIR OWN BUDGET? YOU SAW THAT IN KAREN'S REPORT ONE OF THE INTERNAL SERVICE FUNDS.

THANK YOU. ANY OTHER QUESTIONS ON THIS? AGAIN IT'LL BE IN FUTURE PRESENTATIONS IF YOU THINK OF ANYTHING ELSE.

WELL JUST IN THE PAST I'M GOING TO MOVE BACK A LITTLE BIT.

SO WAS THIS BUDGET PRESENTATION GIVEN TO THE PAC YET OR? NOT YET, NOT YET. WHEN WILL THEY SEE IT? THERE'S A PAC FINANCE COMMITTEE MEETING ON THE 17TH, AND THEN IT GOES TO THE FULL PARK ADVISORY COMMITTEE ON THE MONDAY BEFORE THANKSGIVING, WHICH I THINK IS THE 24TH.

THANK YOU SO WE WILL WE WILL GET THIS CORRECTED. SO 2026 PROPOSED BUDGET 994.31 FTES IT SHOULD SAY -1.96.

NET CHANGE IN BASE BUDGET FTES. SO WHAT WE'VE PROPOSED IN THE OPERATING BUDGET IS CREATING TWO NEW DIVISIONS. ONE OF THOSE NEW DIVISIONS IS THE FACILITIES AND INFRASTRUCTURE DIVISION.

[00:45:02]

SO WE'RE COMBINING IN THIS PROPOSAL. WE'RE COMBINING TEAMS FROM FLEET MANAGEMENT, MAINTENANCE AND SKILLED TRADES FACILITY SERVICES, WHICH IS A PART OF OFFICE SERVICES AND A PART OF BUSINESS SERVICES.

THE DESIGN UNIT, PROJECT MANAGEMENT UNIT, SURVEY AND CONSTRUCTION, INSPECTION AND RESTORATION PROJECTS WOULD ALL COME TOGETHER INTO FACILITIES AND INFRASTRUCTURE. WE'VE ALSO PROPOSED A NEW INFORMATION TECHNOLOGY DIVISION, CHANGING THAT NAME FROM INFORMATION SERVICES TO INFORMATION TECHNOLOGY.

THAT WOULD INCLUDE ALL OF THE IS STAFF FROM FMS, AS WELL AS THE GIS UNIT FROM ACQUISITION, STEWARDSHIP AND DEVELOPMENT. WE ARE ALSO PROPOSING OTHER REORGANIZATIONS.

SO IN FINANCE AND MANAGEMENT SERVICES WE'VE PROPOSED MOVING BUSINESS SERVICES, WHICH INCLUDES RESERVATIONS INTO FMS, CREATION OF A NEW PROCUREMENT UNIT IN FINANCE WHICH WOULD INCLUDE CENTRAL STORES.

ON THE ACQUISITION, STEWARDSHIP AND PLANNING DIVISION, WHICH WOULD BE THE NEW NAME OF THAT DIVISION.

THERE WOULD BE THREE FUNCTIONAL UNITS, LAND ACQUISITION PLANNING TRAILS, CULTURAL RESOURCES AND ARCHIVES AND STEWARDSHIP.

AND SO THE IDEA IS THAT WITH THAT DIVISION BEING JUST FOCUSED ON THOSE THREE THINGS, THOSE AREAS COULD GET MORE ATTENTION AND THEN PROJECT DELIVERY WOULD BE WITH F&I.

AND THEN EXTERNAL AFFAIRS. THIS HAPPENED THIS REORGANIZATION HAPPENED LAST YEAR, BUT YOU'RE SEEING IT REFLECTED IN THE BUDGET THIS YEAR.

REGIONAL PARKS FOUNDATION IS BECOMING A TOTALLY SEPARATE NONPROFIT.

STAFF FROM THE REGIONAL PARKS FOUNDATION WILL BE JOINING EAST BAY PARKS IN NEW ROLES, AND THEN ARCHIVES WOULD MOVE TO THE ASP DIVISION.

SO ALSO IN EXTERNAL AFFAIRS. IN YOUR BUDGET BOOK, YOU'RE SEEING THE CLERK OF THE BOARD MOVING INTO EXTERNAL AFFAIRS AND THE LEGISLATIVE DEPARTMENT MOVING INTO EXTERNAL AFFAIRS. SO THAT'S ALL REFLECTED IN THE BUDGET BOOK THIS YEAR.

BUT THESE THINGS ARE THESE ARE THE NEW ITEMS, THESE THREE BULLETS.

AND THIS IS ONE OF THE PAGES IN THE BUDGET BOOK.

SO AN ATTEMPT TO SHOW YOU HOW THIS CHANGES THE BUDGET.

SO YOU CAN SEE THE 2025 ADOPTED BUDGET AND THEN THE 2026 PROPOSED BUDGET.

AND YOU CAN SEE THE CHANGE IN APPROPRIATIONS FOR OPERATING FOR EACH OF THE DIVISIONS.

SO THE GM'S OFFICE COMES IS SMALLER BECAUSE THE LEGISLATIVE AND GOVERNMENT AFFAIRS DIVISION HAS MOVED TO EXTERNAL AFFAIRS AND CLERK OF THE BOARD HAS MOVED TO EXTERNAL AFFAIRS, AS IT WOULD BE CALLED. ASP IS SMALLER BECAUSE THE DESIGN AND CONSTRUCTION STAFF HAVE MOVED TO THAT NEW FACILITIES AND INFRASTRUCTURE.

EXTERNAL AFFAIRS HAS GAINED THOSE NEW FUNCTIONS.

AS I MENTIONED, FACILITIES INFRASTRUCTURE IS A BRAND NEW DIVISION.

FMS IS SLOWER, IS SMALLER BECAUSE OFFICE SERVICES HAS MOVED OUT AND THEN NEW INFORMATION TECHNOLOGY AND THEN A SMALLER OPERATIONS BUDGET BECAUSE MAST AND BUSINESS SERVICES HAVE MOVED OUT.

AND SO THIS IS A VISUAL REPRESENTATION OF THE NEW FTE AFTER THAT REORG.

IF THAT REORG WERE TO BE ADOPTED, THIS IS WHAT THE NEW FTE WOULD LOOK LIKE.

AND THESE ARE NOW A BUNCH OF BUDGET HIGHLIGHTS THAT ARE IN YOUR PROPOSED BOOK.

I'M NOT GOING TO GET INTO TOO MANY OF THEM BECAUSE KATIE'S GOING TO BE TALKING ABOUT THEM WHEN SHE TALKS. A LOT OF THESE ARE PROJECTS, AND KATIE'S GOING TO BE TALKING ABOUT THEM WHEN SHE TALKS ABOUT THE PROJECT BUDGET. BUT JUST AGAIN, THESE ARE ALL THE THE TOP HEADERS ARE THESE BOARD PRIORITIES.

SO WE'RE ATTEMPTING TO CATEGORIZE THE PROJECTS THAT ARE BEING RECOMMENDED BASED ON THOSE BOARD PRIORITIES.

SO WE'VE GOT OUR INCREASED COMMITMENT TO TRAIL DEVELOPMENT AND MAINTENANCE AND A WHOLE BUNCH OF PROJECTS THAT ARE PROPOSED IN THAT AREA.

ON THE SIDE OF STRATEGIC LAND ACQUISITION AND OPENING NEW PARKLANDS, WE RARELY HAVE LAND ACQUISITION THAT COMES FORWARD AS PART OF THE OPERATING BUDGET, BECAUSE THAT TENDS TO HAPPEN AS, YOU KNOW, AS THINGS PROGRESS.

BUT JUST TALKING ABOUT SOME OF THE LAND OPENING THAT IS EXPECTED.

SO COYOTE HILLS, I UNDERSTAND THEY'VE DONE A SOFT OPENING OR THEY'RE GOING TO VERY SOON OF THAT NEW PUBLIC ACCESS AREA.

WE EXPECT TO OPEN 228 ACRES IN LAS TRAMPAS IN 2026.

AND THEN WE'VE GOT THESE OTHER PROJECTS THAT ARE MOVING FORWARD IN 2027 AND 2028, AND CONTINUING TO WORK WITH THE EAST CONTRA COSTA COUNTY HCP.

IN THE AREA OF SUSTAINABILITY AND ENVIRONMENTAL CONSERVATION, WE HAVE A NEW POSITION WE'RE PROPOSING IN THE GM'S OFFICE TO FOCUS ON SUSTAINABILITY, ENERGY EFFICIENCY AND RESOURCE CONSERVATION. AND THEN THESE ARE A BUNCH OF PROJECTS THAT ARE PROPOSED IN THE PROJECT BUDGET.

DEB. YES. BACK. IS THE POSITION TO FOCUS ON SUSTAINABILITY, ENERGY EFFICIENCY

[00:50:05]

SO THERE'S A LOT OF ENVIRONMENTAL SUSTAINABILITY, ENERGY EFFICIENCY RESOURCE PROJECTS THAT ARE HAPPENING THROUGHOUT THE WHOLE DISTRICT.

AND TO SOME DEGREE, THEY'RE A LITTLE BIT SILOED.

AND SO THE IDEA IS TO GIVE THEM A LITTLE BIT MORE ATTENTION AND FOCUS AND A BETTER UNDERSTANDING OF WHAT'S GOING ON IN EACH OF THOSE AREAS.

SO JUST AS AN EXAMPLE, LIKE IN THE PAST, MANAGEMENT SERVICES WAS MOVING FORWARD SOME ENERGY EFFICIENCY PROJECTS, MAST WAS MOVING FORWARD, SOME ENERGY EFFICIENCY PROJECTS.

AND SO JUST MAKING SURE THAT WE ALL KNOW WHAT'S GOING ON IS THE IS THE IDEA THAT THE GENERAL MANAGER'S OFFICE POSITION WOULD BE ABLE TO, LIKE, MOVE THOSE PROJECTS FORWARD IN A BETTER WAY.

OKAY UNDERSTOOD THANK YOU. ALL RIGHT CONTINUED EMPHASIS ON EQUITY AND INCLUSION AND COMMUNITY ENGAGEMENT.

YOU'VE PROBABLY SEEN AND HEARD THAT THERE'S COMMUNITY ENGAGEMENT GRANT PROGRAM THAT'S MOVING FORWARD.

AND THE IDEA IS TO HAVE COMMUNITY BASED ORGANIZATIONS BE ABLE TO COLLABORATE ON PARK DISTRICT PROJECTS AND PROGRAMS. SO THAT'S NOT IN THE BUDGET PER SE. BUT JUST SOMETHING WE WANTED TO HIGHLIGHT THAT'S MOVING FORWARD.

AND SIMILARLY, THERE WAS A COMMUNITY ENGAGEMENT COMMITTEE THAT WAS WORKING IN THIS PAST YEAR, AND THEY RECENTLY PROVIDED THEIR RECOMMENDATIONS TO IMPROVE THE DISTRICT'S WORK IN GATHERING THAT COMMUNITY INPUT AND THEN SOME MORE PROJECTS FOR FUEL SUPPRESSION AND WILDFIRE PREVENTION. $1.6 MILLION SO YOU MAY RECALL, EVERY YEAR WE ADD AN ADDITIONAL $100,000 TOWARDS A GENERAL FUND, TOWARDS FUELS MANAGEMENT. AND THEN APPROPRIATING OUR MEASURE FF FUNDS FOR SAFE AND HEALTHY FORESTS.

AND THEN I WILL QUICKLY MOVE THROUGH THESE FOR EACH DIVISION.

WE'VE GOT SOME OF THE OBJECTIVES, BUT YOU'RE GOING TO HEAR ABOUT THAT IF YOU HAVEN'T ALREADY IN THE PRESENTATIONS THAT COME TO THE BOARD.

SO I'LL JUST HIT ON ONE FROM EACH DIVISION. SO FOR ASP THEIR STEWARDSHIP PROJECT IS TO INSTALL AN OXYGEN SATURATION SYSTEM IN LAKE ANZA TO IMPROVE WATER QUALITY. EXTERNAL AFFAIRS, THEY'RE GOING TO BE WORKING TO LEVERAGE SOCIAL AND DIGITAL MEDIA TO EXPAND THEIR EXTERNAL COMMUNICATION TO DIVERSE AND UNDERSERVED POPULATIONS, AND THEN USING DIFFERENT ANALYTICAL TOOLS TO MEASURE THAT PROGRESS.

FOR FACILITIES AND INFRASTRUCTURE ONE OF THE PROJECTS THEY'RE GOING TO BE WORKING ON IN THE COMING YEAR IS TO DEVELOP PUBLIC ACCESS AND RESTORATION AT RODDY RANCH. FOR FINANCE AND MANAGEMENT SERVICES, OUR BIG PROJECT IS THE WORKDAY ERP SYSTEM, SO WE'RE WORKING TOWARDS A JANUARY 1ST, 2027 GO LIVE DATE. FOR THE GM'S OFFICE, CONTINUING TO SUPPORT EFFORTS FOR DISTRICT WIDE EMPLOYEE AND COMMUNITY ENGAGEMENT ON THE SECOND CENTURY DISTRICT PLAN AND ONGOING ENGAGEMENT WITH COMMUNITY GROUPS AND THE PARK ADVISORY COMMITTEE.

ON THE HR SIDE, THEY'RE GOING TO BE EXPANDING LEADERSHIP AND PROFESSIONAL DEVELOPMENT, OFFERING TRAINING FOR ASPIRING SUPERVISORS AND MANAGERS STRENGTHENING THEIR EQUITY AND CONDUCT COURSES, AND REFRESHING THE LEARNING LIBRARY, STANDARDIZING ONBOARDING AND EMPLOYEE DEVELOPMENT RESOURCES.

FOR IT THEY'RE WORKING TO EXPAND AND IMPROVE CONNECTIVITY AND RESILIENCE OF SERVICE FOR REMOTE SITES.

OPERATIONS DIVISION HAS A HAS A PROJECT TO IMPROVE AND RENOVATE PICNIC SITES DISTRICT WIDE.

PUBLIC SAFETY IS GOING TO BE CONTINUING TO STRENGTHEN OFFICER MENTAL HEALTH, WELLNESS AND RETENTION, EXPANDING THEIR SUPPORT PROGRAMS AND PROMOTING A CULTURE OF RESILIENCE AND IMPLEMENTING SUSTAINABLE WORKFORCE PRACTICES.

ALL RIGHT, THAT'S IT ON THE OPERATING BUDGET. I'M GOING TO TURN IT OVER TO KATIE. UNLESS YOU HAVE QUESTIONS YOU WANT TO TAKE RIGHT NOW. YEAH. THIS MAY BE IN THE BOOK AND SIMPLY A GRAPHIC THAT I OVERLOOKED OR COULDN'T FIND.

AND THAT WAS A GRAPHIC THAT WE HAD HAD IN THE PAST THAT ATTEMPTED TO FILL IN BUDGET IMPLICATIONS FOR GRANTS RECEIVED. IT WAS A PRODUCT OF OUR OFTEN REMARKING THAT WHEN WE GO THROUGH THE BUDGET, WE'RE NOT SEEING EITHER IN THE CAPITAL BUDGET OR ANYWHERE ELSE. WE'RE NOT SEEING ANTICIPATED GRANT FUNDING THAT WILL AUGMENT OUR BUDGET.

IN OTHER WORDS, WE'RE PRESENTED THE ACTUAL ANTICIPATED EXPENDITURES, IN THIS CASE AROUND $370 MILLION.

BUT IT'S ACTUALLY GOING TO BE MORE THAN THAT WHEN YOU ADD IN GRANTS THAT ARE RECEIVED.

BUT WE DON'T SEE THAT IN THE CURRENT BUDGET. YEAH

[00:55:02]

LOCAL, PRIVATE GRANTS FOR THE LAST FIVE, ROUGHLY FIVE YEARS JANUARY 1ST, 2020 THROUGH SEPTEMBER 30TH, 2025. SO IT'S THAT IS THAT MAYBE THE TABLE YOU'RE THAT'S THE ONLY ONE I CAN THINK OF. I CAN LOOK BACK AND SEE IF THERE WAS SOMETHING WE DID THAT WAS I MEAN, I KNOW YOU, YOU KNOW THIS, BUT I'LL JUST SAY IT.

YEAH IS DIFFICULT TO KNOW WHAT TO BUDGET FOR GRANTS BECAUSE WE PUT IN APPLICATIONS. IT CAN BE LIKE MORE THAN TWO YEARS BEFORE WE HEAR BACK FROM SOME OF THE AWARDING AGENCIES.

SO IT'S TOUGH TO KNOW WHAT TO APPROPRIATE UNTIL WE GET THE LETTER OF AWARD.

AND THEN AND THEN WE FEEL COMFORTABLE BUDGETING IT.

OKAY WELL, THINK ABOUT THIS THOUGH. AND THAT IS I APPRECIATE THE FIVE YEAR LOOK BACK.

IT'S IMPRESSIVE [LAUGHTER]. CORRECT? THE FUNDING THIS ORGANIZATION RECEIVES IS JUST A TESTAMENT TO THE EAST BAY'S ADVANTAGE THAT WE ALL HAVE LIVING HERE OF AN ORGANIZATION LIKE THIS THAT CAN ATTRACT THAT KIND OF OTHER PEOPLE'S MONEY.

IT'S A GREAT CHART TO HAVE. WHAT I'M INTERESTED IN IS BEING ABLE TO SEE WHAT OUR BUDGET, WHAT OUR EXPENDITURES ACTUALLY ARE. WHEN WE LOOK BACK MAYBE TWO YEARS FROM NOW.

HOW DO WE BOOK THE GRANTS AND DOES A. DOES THE 2026 $370 MILLION EXPENDITURE BUDGET ACTUALLY EXCEED THAT BECAUSE OF GRANTS THAT COME IN? SO THAT WHEN I DESCRIBE OUR ORGANIZATION, IS IT A $370 MILLION ORGANIZATION, OR IS IT REALLY MORE CLOSER TO $400 MILLION? YOU KNOW, THAT'S THE NUANCE I'M LOOKING FOR. YEAH.

AND IT IT'S DIRECTLY RELATED TO HOW I CHARACTERIZE OUR ORGANIZATION IN TERMS OF ITS BUDGET SIZE.

YEAH. ANYWAY, THINK ABOUT THAT. YEAH.

AND A NUANCE TO THAT JUST 2026 THE $36 MILLION FROM THE STATE FOR POINT MOLATE ACQUISITION? IS THAT SHOWING UP? YEAH SO IF YOU FLIP TO. LET'S SEE SO YOU'RE NOT SEEING. SO I GUESS ANSWERING YOUR QUESTION IN TWO WAYS.

YOU SEE IT IN THE BOOK. WILL YOU FIND SO SO IT SHOWS UP IN THE PROJECT BUDGET. IT SHOWS UP IN THE IN TOTAL EXPENDITURES OF $370 MILLION. YES. IS THAT INCLUDING THAT $36 MILLION? SO, NO. SO WHAT YOU'RE WHAT YOU'VE GOT HERE IS WHAT WE ARE APPROPRIATING JANUARY 1ST TO CARRY US THROUGH THE END OF 2026. SO OUR OPERATING BUDGET, WHICH DOES INCLUDE A LOT OF PROJECT APPROPRIATIONS, BUT WE WOULDN'T RE-APPROPRIATE SOMETHING THAT WE ALREADY RECEIVED.

AND YOUR QUESTION ABOUT ACTUALS WAS KIND OF WHAT KATIE SAID, THE SAME THING THAT WAS GOING THROUGH MY MIND. LIKE, YOU SEE THAT IN OUR ACFR OUR ANNUAL COMPREHENSIVE FINANCIAL REPORT. THAT'S WHEN YOU SEE WHAT'S BEEN SPENT.

MAYBE THAT'S WHERE I'M THINKING ABOUT A YEAH KAREN JUST DID QUARTER 3 BUDGET ACTUALS AND WE DO A QUARTER 4 BUDGET TO ACTUALS.

BUT THAT'S LIKE NOT QUITE FINISHED, NOT QUITE AUDITED.

SO IT'S THE AUDITED FINANCIALS THAT ARE THE LIKE YEAR END FOR SURE EVERYTHING'S BOOKED.

SO YOU DO. YEAH MAYBE THAT'S MORE WHAT YOU'RE INTERESTED IN IS KNOWING OF OUR EXPENDITURES.

HOW MUCH IS GRANTS. YEAH? YEAH, I GUESS, BUT YOUR SUGGESTION IS THAT $370 MILLION FIGURE DOESN'T INCLUDE A HUGE CHUNK OF MONEY THAT WE JUST GOT AND WE'VE SPENT.

YES BECAUSE WHAT WE'RE. YEAH, I KNOW THIS IS CONFUSING, BUT WHAT WE'RE ADOPTING RIGHT NOW IS REALLY, LIKE, BASED ON WHAT WE EXPECT TO HAPPEN IN THE COMING YEAR.

SO WE'RE NOT GOING TO REFLECT SOMETHING THAT ALREADY HAPPENED. WE'RE JUST LIKE, WHAT'S GOING TO HAPPEN IN 2026? WE EXPECT TO GET THIS MUCH MONEY AND SPEND THIS MUCH

[01:00:05]

WE DON'T BUDGET THEM HERE. IF THEY COME IN, WE THEN APPROPRIATE THEM AT THAT TIME.

SO THE POINT MOLATE GRANT WOULD HAVE BEEN BOOKED LAST YEAR IN 2025.

CORRECT. ALREADY THERE? YES. AND IF WE LOOKED BACK AT THAT BUDGET, WHAT WE APPROPRIATED FOR TOTAL EXPENDITURES IN 25, THAT NUMBER DID NOT INCLUDE. CORRECT IT ALSO IT'S REALLY LIKE A SNAPSHOT IN TIME. WHAT YOU'RE SEEING IN THE BUDGET, IT'S WHAT WE KNOW OF, WHAT WE CAN COUNT ON, WHAT WE BELIEVE WE CAN COUNT ON FOR THE COMING YEAR.

SO TOTAL EXPENDITURES FOR 25 EXCEEDED WHAT OUR BUDGET REFLECTED BY AT LEAST $36 MILLION? YES CORRECT. SO IT MAKES A SIGNIFICANT DIFFERENCE YEAH IT DOES. SO INTERESTING THANK YOU. YEAH.

AND. AND I'D BE INTERESTED TO KNOW HOW WE DIRECT OUR GRANT MANAGER AND ALL OF THEIR STAFF TO PURSUE A GRANT, BECAUSE THAT CAN BE A VERY POLITICAL DEAL. NOW, I KNOW GRANTS COME UP AND I KNOW THAT PEOPLE ADVERTISE.

PEOPLE COME AND SAY, HEY, WE'VE GOT THE STATE HAS GRANTS, MILLIONS OF DOLLARS OF GRANTS FOR RECYCLING FUNDS.

AND WE SAY, OH MY, THAT'S COOL. WE NEED TO GET THAT.

BUT IF WE'RE LIKE, WE ARE IN THIS CASE, PROPOSED TO FUND SOMETHING THAT'S FAIRLY CONTROVERSIAL, A CAPITAL PROJECT, AND WE'RE TOLD, GEE, WE HAVE TO DO IT BECAUSE OUR GRANT FUNDS WILL RUN OUT.

I MEAN, THAT BECOMES A REALLY I DON'T SUSPECT ANYTHING UNTOWARD.

IT WAS GREAT THAT WE GOT THE GRANTS, BUT IT ALSO DRIVES THE POLITICAL DEAL THERE.

YEAH. YOU HAVE TO DO THIS OR YOU'RE GOING TO LOSE MONEY. AND SO SOME CONSULTATION BEFORE WE EVEN SAY I MEAN, LET'S PURSUE A GRANT YOU KNOW, TO, TO PURCHASE ANGEL ISLAND.

OH, WE GOT A GRANT TO PURCHASE ANGEL ISLAND. IT'LL ONLY COST $50 BILLION.

BUT WE HAVE TO DO IT. YEAH. THAT'S AN EXAGGERATION, BUT IT IS.

RIGHT. IT'S COMING UP. NO, I THINK THAT'S SOMETHING WE ARE HIGHLY COGNIZANT OF. AND BEING CAREFUL NOT TO GO AFTER GRANTS LIKE FOR JUST FOR THE SAKE OF LIKE, YAY, FREE MONEY. IT'S WE HAVE TO HAVE A PROJECT IN MIND THAT'S ALREADY BEEN PRIORITIZED BY THE BOARD YEAH.

I KNOW YOU'VE HEARD THIS IN GRANT PRESENTATIONS, AND KATIE CAN SPEAK TO IT MORE SPECIFICALLY, BUT WE ARE MINDFUL OF THAT, NOT GOING AFTER PROJECTS AND GRANTS THAT ARE GOING TO HEAD US IN A DIRECTION THAT'S NOT WHERE WE ALREADY WANT TO GO.

OKAY GO AHEAD DIRECTOR COFFEY AND DIRECTOR WAESPI. KATIE DIGNAN, ASSISTANT FINANCE OFFICER HERE TODAY TO PRESENT THE 2026 CAPITAL IMPROVEMENT PROGRAM.

THANKS FOR BEING HERE. THANK YOU AND TO ANSWER THE QUESTION YOU JUST ASKED, I THINK THAT IS WHY THE CAPITAL IMPROVEMENT PLAN IS SO IMPORTANT, BECAUSE THAT REALLY IS DRIVING LIKE THE PRIORITIES THAT ARE LISTED ON THE PLAN IS WHAT WE'RE ACTIVELY PURSUING GRANTS FOR.

SO THAT'S WHY, YOU KNOW, THESE DOCUMENTS ARE SO CRITICAL THAT WHAT WHAT'S ON THEM IS WHAT WE ARE, WHAT OUR ACTIVE WORK PLAN IS, AND WHERE WE SHOULD BE SEARCHING FOR FUNDING FOR TO SUPPORT THOSE INITIATIVES.

SO TO START OFF THE PARK DISTRICT'S MULTI YEAR PROJECTS ARE HIGHLIGHTED IN TWO CATEGORIES FOR MAJOR IMPROVEMENTS IN A SPECIFIC LOCATION.

WITH A BUDGET EXCEEDING $100,000 AND A DISCRETE END DATE.

THEY'RE REFLECTED AS A PROJECT IN THE CAPITAL IMPROVEMENT PLAN.

AND SO WHEN IF YOU LOOK AT YOUR PROPOSED BUDGET BOOK VOLUME TWO.

SO ALL OF OUR CAPITAL IMPROVEMENT PLAN PROJECTS GET AN INDIVIDUAL PAGE THAT'S REFLECTED IN SECTION E, THEN ALL OTHER PROJECTS ARE GROUPED TOGETHER WITH SIMILAR PROJECTS AND REFLECTED AS PROGRAMS, AND THOSE ARE IN SECTION F. SO THIS TABLE HERE WE'RE PROPOSING TO APPROPRIATE $83.72 MILLION IN 2026 PROJECT APPROPRIATIONS.

AND SO WHEN WE LOOKED AT OUR PROGRAMS, WHICH ARE REFLECTED IN SECTION F, WE FIRST HAVE INFRASTRUCTURE MAINTENANCE, WHICH INCLUDES $250,000 FOR HAZARDOUS TREE REMOVAL, $500,000 FOR ADA ACCESS PROJECTS, $130,000 FOR MINESHAFT REPAIRS, AND $120,000 FOR PLAYGROUND RENOVATIONS.

DETAILS CAN BE FOUND IN THE BOOK. FOR LAND USE PLANNING AND DESIGN THIS PRIMARILY IS THE PRELIMINARY DESIGN PROJECT WHICH ACCOUNTS FOR STAFFING. THE STAFFING COSTS FOR THE DESIGN AND CONSTRUCTION DEPARTMENT.

SO THAT'S REALLY THAT $6,958,630 IS ALL TO SUPPORT STAFFING FOR DESIGN AND CONSTRUCTION DEPARTMENT.

NEXT WE HAVE THE PRELIMINARY LAND ACQUISITION WE'RE APPROPRIATING $67,480 TO SUPPORT POTENTIAL ACQUISITIONS CURRENTLY BEING PURSUED.

[01:05:08]

ABOUT $1,000,000 IS FOR ONGOING MITIGATION AND MONITORING EFFORTS AS A RESULT OF COMPLETED CAPITAL PROJECTS SUCH AS MCCUSKER CREEK, TYLER STAGING AREA, DOOLITTLE DRIVE, THE PALLID, ROBERTS PALLID MANZANITA.

THEN WE HAVE ABOUT $400,000 TO EXPAND ENVIRONMENTAL ASSESSMENT AND MONITORING EFFORTS AT POINT MOLATE.

WE'VE GOT OUR QUAGGA MUSSEL INSPECTIONS, AND IT ALSO INCLUDES A NEW PROJECT TO SUPPORT DEBRIS AND SEA LIFE REMOVAL ON SHORELINE PARKS.

THE NEXT CATEGORY IS SERVICES, ENHANCED THROUGH SPECIAL FUNDING AT OVER $1.7 MILLION.

AND THIS IS FOR MEASURE FF SUPPORTED PERSONNEL FOR PARK OPS, STEWARDSHIP AND PUBLIC SAFETY, AND PROJECTS SUCH AS THE OAKLAND ZOO SUPPORT AND BLUE-GREEN ALGAE MANAGEMENT.

FOR TECHNOLOGY AND WORKSPACE IMPROVEMENTS WE'RE RECOMMENDING $382,000 OF THAT $225,000 FOR COMPUTER NETWORK INFRASTRUCTURE AND $150,000 FOR RESERVATION SOFTWARE, AND THEN $50,000 DOES CONTINUE SUPPORTING GRANT WRITING.

THEN UNDER WILDFIRE HAZARD REDUCTION, LIKE DEB MENTIONED, WHERE OUR ANNUAL ALLOCATION TO SUPPORT WILDFIRE MITIGATION EFFORTS SUCH AS GOAT GRAZING, MAINTENANCE PROJECTS AND DEFENSIBLE SPACE INITIATIVES, AS WELL AS MEASURE FF FUNDING.

WE HAVE 32 PROJECTS WE'RE RECOMMENDING FUNDING FOR, WHICH I'LL GO OVER IN MORE DETAIL LATER IN THE PRESENTATION.

THERE'RE SEVEN PUBLIC ACCESS PROJECTS THAT $37.9 MILLION, NINE TRAILS PROJECTS AT $8.6 MILLION, SIX RESTORATION PROJECTS AT $5.6 MILLION, THEN 13 INFRASTRUCTURE PROJECTS AT $17.3 MILLION.

AND THE ONE ACQUISITION PROJECT IS POINT MOLATE.

THIS IS TO CONTINUE FUNDING EXISTING ENVIRONMENTAL ENGAGEMENT EFFORTS WE HAVE AT THIS SITE.

SO PROGRAM AND FUNDING SOURCES FOR THE CAPITAL BUDGET OF THE $83.72 MILLION, 69% OR $57 MILLION OF PROGRAM AND PROJECT FUNDING IS COMING FROM MEASURE WW FOR 2026. WE'RE PROPOSING TO FUND THE FULL PROJECT COSTS FOR PROJECTS THAT ARE ANTICIPATED TO BE COMPLETED IN THE NEXT THREE YEARS.

IN ORDER TO ACCOMPLISH THIS, WE'RE PROPOSING TO UPDATE THE MEASURE WW PROJECT LIST TO TRANSFER $41.9 MILLION FROM ACQUISITION TO DEVELOPMENT PROJECTS.

AS YOU HEARD LAST WEEK DURING THE LEGISLATIVE COMMITTEE, WE'RE ACTIVELY PURSUING GRANTS FOR SEVERAL OF THE PROJECTS WE'RE RECOMMENDING FUNDING FOR, AND IF SUCCESSFUL, WE WILL RETURN THE ACQUISITION FUNDING TO ITS SOURCE.

WE'RE ALSO DEVELOPING AN ALTERNATIVE PROPOSAL BASED ON THE BOARD'S FEEDBACK.

THE PROGRAMS AND PROJECT BUDGET IS ALSO SUPPORTED BY $11.35 MILLION IN GENERAL FUND.

$3.7 MILLION, AND OTHER, WHICH IS PRIMARILY INSURANCE PROCEEDS $3.2 MILLION OF MEASURE FF, $2.9 MILLION OF MAJOR INFRASTRUCTURE RENOVATION AND REPLACEMENT FUNDS, $2.6 MILLION OF MEASURE WW INTEREST AND $1.6 MILLION FROM MEASURE AA INTERESTS. MEASURE WW IS A BOND MEASURE PASSED BY 72% OF VOTERS IN ALAMEDA AND CONTRA COSTA COUNTIES IN NOVEMBER OF 20, OF 2008, WHICH PROVIDED $500 MILLION IN BOND AUTHORITY TO THE PARK DISTRICT FOR THE ACQUISITION AND PRESERVATION OF LAND, RESTORING URBAN CREEKS, PROTECTING WILDLIFE, AND DEVELOPING AND IMPROVING LOCAL AND REGIONAL PARKS, TRAILS AND RECREATIONAL FACILITIES. MEASURE WW ALLOCATIONS WERE INITIALLY ESTABLISHED VIA A PROJECT LIST AND ADOPTED BY THE PARK DISTRICT BOARD OF DIRECTORS IN JUNE OF 2008. THE LIST WAS ESTABLISHED TO BALANCE FUNDING ALLOCATIONS TO SITES ON A POPULATION BASED RATIO BETWEEN THE THREE METROPOLITAN PLANNING SECTORS WEST, SOUTH AND DIABLO, AS DEFINED BY THE LAST PARK DISTRICT MASTER PLAN.

IN JULY 2008, THE BOARD AUTHORIZED THE PLACEMENT OF MEASURE WW ON THE NOVEMBER BALLOT BUT EXPRESSLY PROVIDED THE BOARD WITH THE AUTHORITY TO UPDATE THE PROJECT LIST AS NEEDED TO REMAIN RESPONSIVE TO CHANGING CONDITIONS AND OPPORTUNITIES AS THEY RELATE TO THE PARKS AND OPEN SPACES IN ALAMEDA AND CONTRA COSTA COUNTIES.

SINCE 2010, THE BOARD HAS EXERCISED THAT AUTHORITY TO UPDATE THE PROJECT LIST AND TRANSFER FUNDS BETWEEN ALLOCATION AREAS OR REALLOCATING ACQUISITION FUNDS TO DEVELOPMENT PROJECTS.

OF THE INITIAL $500 MILLION IN BONDING AUTHORITY, THE PARK DISTRICT HAS ISSUED $300 MILLION.

AS OF SEPTEMBER, WE'VE APPROPRIATED APPROXIMATELY $296 MILLION.

OF THAT, 42%, OR $125 MILLION, WAS FOR THE LOCAL GRANTS PROGRAMS. THE PARK DISTRICT HAS EXPENDED 89% OF THE FUNDS AT $266.9 MILLION, WITH $118 MILLION FOR LOCAL GRANTS, $78.7 MILLION FOR ACQUISITION AND $69.6 MILLION FOR DEVELOPMENT, LEAVING $33 MILLION AVAILABLE FOR EXPENDITURES

[01:10:06]

WE PLAN TO ISSUE $80 MILLION EITHER LATE IN 2026 OR EARLY 2027, AND THE REMAINING $120 MILLION WOULD BE ISSUED BASED ON WHEN LAND ACQUISITION PROJECTS WERE SCHEDULED TO MOVE FORWARD. AS OF SEPTEMBER 30TH, THE MEASURE WW UNAPPROPRIATED BALANCES TOTALED $203,567,046, WITH OVER $157.3 MILLION AVAILABLE FOR ACQUISITIONS, $27.8 MILLION AVAILABLE FOR DEVELOPMENT AND $18.3 MILLION IN CONTINGENCY.

IF THE BUDGET IS ADOPTED AS PROPOSED, THE REMAINING BALANCE WOULD BE $145,593,410 WITH $115.2 MILLION FOR ACQUISITIONS, $18.6 MILLION FOR DEVELOPMENT AND $11.7 MILLION FOR CONTINGENCY.

NOW I'M GOING TO RUN THROUGH EACH OF THE PROJECTS WE'RE PROPOSING MEASURE WW ACQUISITION FUNDING AND CONTINGENCY APPROPRIATIONS.

THESE SLIDES ARE SIMILAR TO WHAT WAS PRESENTED AT THE OCTOBER 3RD BOARD STUDY SESSION.

HOWEVER, SINCE THE MEETING WAS NOT BROADCASTED OR RECORDED, WE WANT TO BE FULLY TRANSPARENT IN WHAT IS PROPOSED.

BUT I SAW YOUR HAND RAISED, SO I'LL STOP IT SAYS THE BOARD HAS EXERCISED ITS AUTHORITY TO UPDATE THE PROJECT LIST ON MANY OCCASIONS, TRANSFERRING FUNDS BETWEEN ALLOCATION AND RELOCATING YOU KNOW, CHANGING FROM ACQUISITION TO DEVELOPMENT. CAN YOU KNOW, OUR CRITICS ARE SUGGESTING THAT THAT'S NOT THE CASE AND SHOULD NEVER HAVE BEEN.

YOU SAY THAT WE'VE DONE IT. CAN YOU SHOW ME PROJECTS THAT HAVE OCCURRED AND THE DATES THAT THEY'VE OCCURRED? SO I CAN DEFEND YOUR POSITION? YES, I CAN, I CAN PROVIDE THAT I THINK IT'S VERY IMPORTANT. AND THEN WE SUGGEST THAT ON THE NEXT PAGE, THE REMAINING 100, IF WE DO TAKE $42 MILLION OUT OF ACQUISITION AND TRANSFER IT TO DEVELOPMENT, THE REMAINING $120 MILLION IN MEASURE WW WILL BE, THE REMAINING WILL BE BASED ON LAND ACQUISITION PROJECTS MATERIALIZING.

WHAT? SO THAT INSINUATES THAT WE'RE GOING TO USE THE REMAINING MEASURE WW FUNDS FOR ACQUISITION.

WHY, WHAT WOULD THE? IS THAT A GUARANTEE? BECAUSE WHAT WOULD KEEP SOMEBODY WHEN YOU SAY, GOSH, ALL OF A SUDDEN ALLEGEDLY THE CHANGE HAS BEEN NOW WE'VE GOT THIS GIANT POT OF MONEY THAT CAN FUND ALL OF THE STUFF THAT WE COULDN'T DO.

WE'LL JUST TELL THE FOLKS, LOOK THIS WAY, NOT THAT WAY.

AND WE'RE GOING TO TAKE THE ACQUISITION FUNDS, PUT THEM IN DEVELOPMENT. WHY WON'T WE DO THAT FOR THE OTHER $120 MILLION? BECAUSE WE DO HAVE AN INCREDIBLE NEED. I MEAN, WHAT HAVE WE GOT, $478 MILLION WORTH OF CAPITAL PROJECTS ON THE BOOKS? WHY WOULD WE NOT DO THAT? AND IS THERE ANY ASSURANCE THAT WE WILL SPEND $120 MILLION? OKAY SO THE SO WE HAVE $200 MILLION OF BOND PROCEEDS REMAINING TO ISSUE.

WE WOULD NOT WANT TO ISSUE THOSE UNTIL WE HAVE A DETAILED SPEND PLAN THAT WE CAN SPEND THAT MONEY WITHIN THREE YEARS.

AND SO WE'D WANT TO IDENTIFY OKAY, HERE'S THE PROJECTS WE PLAN ON SPENDING THAT BECAUSE AS YOU CAN SEE FROM WHERE WE ARE RIGHT NOW, WE HAVE $33 MILLION STILL AVAILABLE IN BOND PROCEEDS THAT WE ISSUED IN 2022.

THAT WAS OUR LAST ISSUANCE. SO WE WANT TO MAKE SURE WE HAVE A SPEND PLAN.

SO I DON'T HAVE THAT'S WHY I'M SAYING IT'LL BE THE ONE WHEN WE ISSUE THE REMAINING $120 WILL BE BASED ON WHAT OUR WHAT OUR CAPITAL IMPROVEMENT SPEND PLAN IS.

OKAY YEAH I'M NOT, THAT WASN'T WHAT I WAS REFERRING TO BUT.

OKAY. SO OF THE $200 MILLION WE'RE PROPOSED IN THE NEXT MONTH TO BRING IT DOWN TO $120 MILLION.

AND I'M WONDERING, WELL, ISN'T THAT CORRECT? SO I THINK THAT YOUR QUESTION WAS LIKE IN THIS PROPOSAL.

WE'RE PROPOSING TO USE $42 MILLION OUT OF THE ACQUISITION FUNDS TO FUND CAPITAL PROJECTS.

THAT WOULD BE A REMAINDER OF LIKE $111 MILLION IN ACQUISITION.

WHAT'S TO PREVENT STAFF RECOMMENDING TO YOUR BOARD AND YOUR BOARD APPROVING FURTHER MOVEMENT OF ACQUISITION FUNDS IN THE FUTURE? I THINK THE WHAT I'D RESPOND AND KATIE MENTIONED THIS BRIEFLY, BUT I JUST WANT TO CALL ATTENTION TO IT, IS THAT WE'VE HEARD THE FEEDBACK FROM YOUR BOARD ABOUT CONCERNS AROUND THE ALLOCATION OF REALLOCATING THAT AMOUNT OF ACQUISITION FUNDS, AND STAFF IS WORKING ON A ALTERNATIVE THAT WOULD ALLOCATE LESS, REALLOCATE LESS OF THE ACQUISITION FUNDS TO PROJECTS. AND SO WE'LL BRING THAT TO YOUR BOARD AT YOUR NEXT MEETING.

AND I THINK THAT'S SOMETHING THAT'S GOING TO BE ONGOING.

THE PURVIEW OF THE OVERSIGHT OF YOUR BOARD IS BALANCING THOSE COMPETING INTERESTS BETWEEN CONTINUING TO HAVE FUNDS AVAILABLE FOR FUTURE OPPORTUNITIES AND USING FUNDS IN THE NEAR FUTURE FOR NEAR TERM OPPORTUNITIES.

[01:15:08]

INTRODUCE YOURSELF MAX. SORRY [LAUGHTER]. MAX KORTEN, ACTING GENERAL MANAGER.

WHICH IS VERY IMPORTANT. OUR ACTING [LAUGHTER] GENERAL MANAGER IS SPEAKING.

YOU HAVEN'T ANTICIPATED WHAT WAS GOING TO BE A SPECIFIC ASK OUT OF THIS MEETING TODAY.

AND THAT IS THE ALTERNATIVE YOU JUST DESCRIBED.

AND SO THAT WILL BE MUCH APPRECIATED. ONE OF THE THINGS AND WE SHOULD LET YOU LAUNCH THROUGH THIS.

YOU ARE SAYING, THOUGH THIS IS THE SAME BOOK WE WERE USING AT THE WORKSHOP? THAT'S CORRECT IT'S THE SAME IT'S THE SAME PROPOSAL THAT WAS PRESENTED ON OCTOBER 3RD.

THAT HELPS AT THE WORKSHOP, WE DID ASK THAT WE HAVE SOME KIND OF TOTALS HERE, SO TAKE THESE REALLOCATIONS THAT HAVE OCCURRED IN THE PAST GOING BACK TO 2010, AND TOTAL THEM UP FOR US AND TELL US WHAT REGIONS OR PARKS THEY ACTUALLY IMPACTED. BECAUSE WHAT WE HAVE TO WORK TOWARD, AND MAYBE NOT AS PART OF THIS PROCESS, ESPECIALLY IF THERE'S AN ALTERNATIVE WE END UP PURSUING, BUT WE NEED [LAUGHTER] TO HAVE A REALLY GOOD IDEA OF HOW WE HAVE IMPACTED THE ORIGINAL BALLOT MEASURE ALLOCATIONS TO DATE.

OKAY. WE NEED TO KNOW THAT. AND HERE'S THE [LAUGHTER] KICKER THAT'S GOING TO CAUSE YOU FOLKS SOME WORK.

WE NEED TO KNOW, AS BRIAN HOLT HAS NOW EXPLAINED, WITH A SPECIFIC FUND INVOLVING OAKLAND SHORELINE, WE NEED TO KNOW WHERE WE HAVE ALREADY MET, WHAT WE TOLD THE VOTERS WE WERE GOING TO DO IN WW.

THERE ARE, AS MAX POINTED OUT DURING OUR LAST MEETING, JUST BECAUSE WE HAVEN'T SPENT SOME FUNDS THAT REMAIN IN OAKLAND SHORELINE DOESN'T MEAN WE HAVEN'T MET OUR WW OBLIGATIONS REGARDING THE OAKLAND SHORELINE.

AND THE PROBLEM IS WE NEED TO KNOW THAT. CONVERSELY, WE NEED TO KNOW WHERE WE HAVEN'T MET THEM AND HAVE A GOOD UNDERSTANDING THAT WE HAVEN'T MET OUR PROJECTIONS FOR WW USE.

WHY? BECAUSE LAND BECAME UNAVAILABLE OR YOU KNOW, CITY OF OAKLAND TOOK UP A WHOLE BUNCH OF STUFF WE MIGHT HAVE TAKEN UP. SO IF WE HAVEN'T MET THE ORIGINAL SUGGESTED USES OF WW, WE NEED TO KNOW WHY THEY'RE GOING TO BE SOME REALLY GOOD REASONS WHY WE DIDN'T. YOU KNOW, CONCORD NAVAL WEAPONS STATION CAME TO US FOR FREE.

SO WE HAD A BUNCH OF ACQUISITION MONEY THERE. I THINK WHEN WE DRILL DOWN ON EACH OF THESE, AS BRIAN HOLT DID FOR US IN A, IN A MEMO ON THE OAKLAND SHORELINE, THERE ARE REALLY GOOD EXPLANATIONS FOR WHAT'S GOING ON HERE, AND IT'S JUST GOING TO TAKE A LOT OF WORK, I THINK, FOR US TO ALL BE COMFORTABLE AND GET THERE.

OKAY. ANYWAY, I'M JUST PREFACING [LAUGHTER] WHAT I THINK IS GOING TO COME OUT OF THIS MEETING SO THAT WE CAN NOW GO AHEAD WITH YOUR PRESENTATION. OKAY THANK YOU AND DIRECTOR WAESPI, I JUST DID WANT TO CLARIFY.

SO WE'RE PROPOSING TO APPROPRIATE $57.9 OF MEASURE WW.

BUT WE APPROPRIATE THE FUNDING BUT THEN THEY HAVE DIFFERENT LIKE ACTUAL EXPENDITURE PROJECTIONS.

SO THAT'S WHY I'M SAYING WE PROBABLY WOULD NOT GO OUT AND ASK FOR MORE BOND ISSUANCE UNTIL THE END OF NEXT YEAR BASED ON WHEN THOSE PROJECTS GO INTO CONSTRUCTION, BECAUSE USUALLY THAT'S WHEN MOST OF THE FUNDING IS NEEDED IS RIGHT WHEN WE'RE IN CONSTRUCTION.

SO SORRY I WASN'T CLEAR ON THAT AND AS WE MENTIONED, WE'LL BE WE'RE WORKING ON A SUPPLEMENTAL PROPOSAL.

AND WE'LL BE ISSUING IT FOR THE NOVEMBER 18TH MEETING.

AS WE START OFF, WE'LL GO TO THURGOOD MARSHALL, SOUTH OF BAILEY ROAD, PUBLIC ACCESS PROJECT, WHICH INCLUDES A STAGING AREA, RESTROOMS, AND A PICNIC SHELTER, ACCESS TO AMMUNITION BUNKERS, A NATURAL SURFACE TRAIL NETWORK, AND HABITAT RESTORATION.

THE CURRENT ESTIMATED PROJECT COST IS $18 MILLION, AND WE'RE REQUESTING $14.5 MILLION IN WW FUNDS FROM THURGOOD MARSHALL ACQUISITION AND DEVELOPMENT, AND ALSO $2.4 MILLION FROM CONTINGENCY FUNDS TO GET US TO THE $14.5 MILLION.

[01:20:01]

THE DETAILS OF THE FUNDING CAN BE FOUND IN YOUR PROJECT BOOK ON PAGE E-69.

FOR DEER VALLEY, THE DEVELOPMENT OF A STAGING AREA AT THE PROPERTY FORMERLY KNOWN AS THE RODDY RANCH GOLF COURSE, IT INCLUDES APPROXIMATELY FOUR MILES OF TRAILS, INTERPRETIVE PAVILION AND WAYSIDE PANELS, RESTROOMS, PICNIC FACILITIES, LANDSCAPE ENHANCEMENTS, AND HABITAT RESTORATION.

THE CURRENT ESTIMATED PROJECT COST IS $21.2 MILLION, AND WE'RE REQUESTING $12.447 MILLION IN WW FUNDING FROM CLAYTON RANCH ACQUISITION AND DEVELOPMENT. ROUND VALLEY ACQUISITION, CONTINGENCY AND INTEREST FROM MEASURE WW AND MEASURE AA.

NEXT IS IMPROVEMENTS AT KELLER BEACH AT MILLER KNOX, WHERE WE'LL PROVIDE PAVED, ACCESSIBLE CONNECTION VIA THE BAYSHORE BETWEEN KELLER BEACH AND MILLER KNOX REGIONAL PARK. WE WANT TO REPLACE THE WORN OUT FACILITIES, INCLUDING THE RESTROOM BUILDING, SITE FURNISHING, AND PAVING. THE ESTIMATED PROJECT COST IS $12.13 MILLION, AND WE'RE REQUESTING $7.995 MILLION OF MEASURE WW ACQUISITION FUNDING FROM MLK SHORELINE. AT ROBERTS, WE'RE REQUIRED TO INSTALL A NEW SEWER LINE TO CONNECT THE POOL FACILITIES TO MUNICIPAL SEWER SYSTEM FOR REGULATORY COMPLIANCE. THE ESTIMATED PROJECT COST IS $6.8 MILLION, AND WE'RE REQUESTING $4.7 MILLION FROM MEASURE WW ACQUISITION FUNDING FROM MLK AND OAKLAND SHORELINE, AS WELL AS $1,040,000 OF MIRR FUNDING AND A TRANSFER FROM AQUATIC FACILITIES OF $700,000 TO GET US TO THE TOTAL $6.5 MILLION.

AT LAS TRAMPAS, WE NEED TO REPLACE AN AGE TWO MILE LONG WATER LINE AND WATER SUPPLY SYSTEM THAT SERVICES THE PARK OFFICE AND FIRE HYDRANTS AT HOLLY COURT.

THE ESTIMATED PROJECT COST AT THIS TIME IS $5 MILLION, AND WE'RE REQUESTING $900,000 FOR MEASURE WW FROM LAS TRAMPAS DEVELOPMENT AND ACQUISITION $3,046,000 FOR MEASURE WW AT CASTLE ROCK, DIABLO FOOTHILLS AND $439,000 OF MIRR.

AT POINT ISABEL, WE NEED TO RESTORE AND ENHANCE THE EXISTING REMEDIAL CAP TO PROVIDE SUSTAINABLE USE OF THE PARK THROUGH GRADING, DRAINING AND PLANTING TO PREVENT SOIL EROSION.

THE TOTAL PROJECT COST IS $10.4 MILLION, WITH CONSTRUCTION ANTICIPATED IN 2027.

WE'RE REQUESTING $3,089,386 OF MEASURE WW ACQUISITIONS FROM OAKLAND SHORELINE.

WE HAVE A PENDING LWCF GRANT FUND OF $5,445,614.

THAT HAS A 50% MATCH REQUIREMENT. AT PLEASANTON RIDGE THE REQUEST IS FOR $3 MILLION TO CONSTRUCT TWO NATURAL SURFACE TRAILS TOTALING ROUGHLY THREE MILES. THIS IS THE UPPER AND LOWER SEGMENTS OF THE TEHAN CANYON TRAIL AND THE CONGDON LOOP TRAIL NEAR THE GARMZ AREA.

WE'RE REQUESTING $2 MILLION OF MEASURE WW SUNOL ACQUISITION FUNDS, ALONG WITH TRANSFERRING OVER $700,000 IN FUNDS FROM THE STAGING AREA PROJECT AND $206,576 OF MEASURE AA INTEREST. AT BIG BREAK THE PROJECT WOULD INSTALL A NEW PERMANENT SHADE STRUCTURE AT THE AMPHITHEATER TO ALLOW FOR OUTDOOR INTERPRETIVE PROGRAMING YEAR-ROUND.

REDUCE ONGOING MAINTENANCE COSTS AND SAFETY CONCERNS ASSOCIATED WITH THE FAILING SHADE STRUCTURES, AND TO ENCOURAGE AND ALLOW FOR YEAR-ROUND USE OF BOTH SITES.

THE TOTAL ESTIMATED PROJECT COST IS $2,963,000 AND THE FUNDING GAP IS $2,418,000.

WE'RE REQUESTING MEASURE WW $1,771,062 FROM ACQUISITION, AND $482,038 OF DEVELOPMENT FROM DELTA ACCESS AND $164,900 FROM MEASURE AA INTEREST.

FOR THE DEVELOP MARTINEZ BAY TRAIL ALONG THE SAN FRANCISCO BAY TRAIL.

WE NEED TO CONSTRUCT THE 0.4 MILE SAN FRANCISCO BAY TRAIL SEGMENT FROM THE NEJEDLY STAGING AREA TO BERRELLESSA STREET, INCLUDING A SAFETY IMPROVEMENT TO THE AT GRADE RAIL CROSSING IN MARTINEZ.

THE TOTAL PROJECT COST IS $7.7 MILLION, AND WE'RE REQUESTING $2 MILLION OF MEASURE WW BAY TRAIL ACQUISITION TO FILL THE GAP WITH THE REMAINING $1 MILLION FROM GRANTS.

AT OYSTER BAY, WE'D LIKE TO ADVANCE THE BIKE SKILLS PROJECT THAT WE BEGAN WORKING ON IN 2018 TO CONSTRUCT A SIX-ACRE BIKE PARK AND PERIMETER TRAIL AT OYSTER BAY REGIONAL SHORELINE. WE'RE REQUESTING $1.6 MILLION IN MEASURE WW ACQUISITION FROM OAKLAND SHORELINE AND $200,000 FROM MEASURE AA INTEREST.

FOR THE BAY AREA RIDGE TRAIL FROM GARIN TO VARGAS PLATEAU, INCLUDING A TRAIL BRIDGE AT AN AT GRADE RAILROAD CROSSING IN NILES CANYON RAILWAY.

THE PROJECT IS SCHEDULED TO BE READY TO BID NEXT YEAR AT A TOTAL COST OF $2.6 MILLION, AND WE NEED AN ADDITIONAL $1.7 MILLION AND REQUESTING

[01:25:04]

FOR HAYWARD SHORELINE WE NEED TO CONSTRUCT A ROAD TO PROVIDE INITIAL SITE ACCESS FOR CONSTRUCTION ACTIVITIES AND THE ESTIMATED COST FOR THE SCOPE IS $900,000.

WE'RE PROPOSING USING $774,230 OF MEASURE AA INTEREST AND $125,770 OF WW CONTINGENCY.

IN TILDEN THE BRIDGE AT BROOK ROAD PROJECT HAS COMPLETED DESIGN AND IS READY TO GO TO BID IN JANUARY.

THE TOTAL PROJECT COST IS $3 MILLION. AND WE HAVE A FUNDING GAP OF $555,000.

AND REQUESTING MEASURE WW URBAN CREEK'S ACQUISITION FUNDING.

TO COMPLETE THE COYOTE BRUSH TRAIL IN SIBLEY AS PART OF THE MCCOSKER TRAIL'S PROJECT, WE'RE REQUESTING $150,000 OF MEASURE WW SIBLEY ACQUISITION FUNDS.

AND THEN TO CONSTRUCT A TRAIL BRIDGE OVER THE CREEK IN KENNEDY GROVE AND CLOSE THE RIDGE TRAIL GAP FROM KENNEDY GROVE TO EL SOBRATO RIDGE.

WE'RE REQUESTING $150,000 OF BAY AREA RIDGE TRAIL ACQUISITION FUNDS FOR THIS PROJECT.

SO THAT COMPLETES THE PROJECTS THAT WE'RE REQUESTING MEASURE WW ACQUISITION OR CONTINGENCY FUNDS FOR.

OUR OTHER PROJECT, PROPOSED APPROPRIATIONS I'VE GROUPED BY THE DIFFERENT CATEGORIES.

SO FOR PUBLIC ACCESS, WE HAVE $1.5 MILLION FOR BRIONES CAMPGROUND IMPROVEMENTS AT MAUD WHALEN.

THEN WE'VE GOT $1,340,000 FOR LAS TRAMPAS FOR PUBLIC ACCESS AND MITIGATION ALONG THE BOLLINGER CANYON ROAD, $150,000 FOR DOOLAN CANYON PUBLIC ACCESS, $100,000 FOR BOREL PLAN PARK, AGRICULTURAL PARK.

YES DIRECTOR COFFEY. OH, [LAUGHTER] SORRY. IN THE TRAILS CATEGORY, WE HAVE $500,000 OF MEASURE WW DEVELOPMENT FUNDS FOR CALAVERAS RIDGE TRAIL TO OLYMPIC BOULEVARD TO DRIVE THEN $300,000 FOR MURRAY TOWNSHIP TRAIL PLANNING.

WE WILL WORK WITH LARPD TO IDENTIFY PRIORITY PROJECTS IN THE MURRAY TOWNSHIP AREA.

THEN $150,000 FOR TILDEN TRAIL REPAIRS AND ENHANCEMENTS.

THEN FOR RESTORATION WE'RE PROPOSING $800,000 OF MEASURE FF FUNDING FOR THE LAKE TEMESCAL PLANNING AND DESIGN PROJECT, $200,000 IN MIRR FUNDING FOR MILLER KNOX TO REPAIR THE LAGOON INTAKE SCREEN AND $120,000 IN MEASURE WW DEVELOPMENT FUNDS FOR TILDEN NATURE AREA WILDCAT CREEK TRAIL STABILIZATION.

WE HAVE A NUMBER OF INFRASTRUCTURE PROJECTS THAT WE'RE REQUESTING FUNDING FOR.

MOST OF THIS WILL BE FROM INSURANCE PROCEEDS TO ADDRESS THE REPAIRS, WE NEED TO RESTORE THE VASCO SHOP THE VASCO HILLS SERVICE YARD, AS WELL AS AT DEL VALLE, TO DEAL WITH THE FLOODING ISSUES AND RESTORE THE EAST CONCESSIONS RENOVATION.

THEN WE HAVE PROJECTS FUNDED WITH MIRR FOR BLACK DIAMOND MINE TO IMPROVE PUBLIC ACCESS AT THE MINE, WE NEED $200,000 TO BE ABLE TO GO OUT TO BID FOR THE RENOVATE MCKAY AVENUE UTILITIES PROJECT, AND THEN INSTALLATION $60,000 OF GENERAL FUND FOR INSTALLATION OF MODULAR BUILDINGS AT DEL VALLE TO SERVICE THE PARK OFFICE.

IN YOUR BUDGET BOOK WE HAVE THE LAYOUT OF THE 2026 TO 2030 CAPITAL IMPROVEMENT PLAN.

THERE'S OVER 82 PRIORITY PROJECTS, 32 ARE IN PRE-DESIGN, 35 ARE IN DESIGN AND PERMITTING, 14 IN CONSTRUCTION. AND THE ACQUISITION IS THE POINT MOLATE PROJECT.

THE TOTAL ESTIMATED COST IS $499,256,805 AND OUR UNFUNDED TOTAL IS $136,471,183 IF THE PROPOSED BUDGET IS ADOPTED.

I ALSO WANT TO NOTE THAT WHAT WE'RE PROJECTING RIGHT NOW IS THAT WE'LL NEED APPROXIMATELY $48,080,138 AND 2027 BASED ON HOW OUR PROJECTS ARE MOVING FORWARD. SO WE STILL HAVE FUNDING NEEDS IN THE FUTURE YEARS.

I WANTED TO ADDRESS THAT. YOU ASKED ABOUT PREVIOUS APPROPRIATIONS OF ACQUISITION FUNDING THIS YEAR WHAT WE'VE DONE IN THE BUDGET BOOK IS WE HAVE LISTED FOR ALL THE 82 PROJECTS THAT ARE CURRENTLY FUNDED. THEY HAVE DETAILS ON WHERE THEIR FUNDING SOURCES HAVE COME FROM FOR EACH OF THE PROJECTS.

SO IN THE BOOKS, IF ACQUISITION FUNDING DID CONTRIBUTE TO THAT PROJECT, IT WILL BE LISTED IN IN THE PROJECT DETAILS ON THE PAGE.

SO MOVING FORWARD WITH THE PROPOSED BUDGET PUBLIC INPUT AND APPROVAL TIMELINE.

AS DEB MENTIONED, OUR NEXT MEETING IS WITH THE PAC FINANCE COMMITTEE ON NOVEMBER 19TH TO GO OVER THE PROPOSED BUDGET.

[01:30:07]

AND THEN WE BRING THE FULL BUDGET TO THE BOARD OF DIRECTORS FOR INTRODUCTION AND PUBLIC HEARING ON DECEMBER 2ND.

AND THEN IT IS COMING UP ON DECEMBER 16TH FOR BUDGET ADOPTION.

SO THE REQUESTED ACTION IS THAT THE BOARD FINANCE COMMITTEE RECOMMEND TO THE BOARD OF DIRECTORS ADOPTION OF THE 2026 PROPOSED OPERATING BUDGET PROGRAM AND PROJECTS BUDGET.

WITH THAT, WE'LL TAKE QUESTIONS. JUST A LITTLE GOING ON HERE YOU WANT THIS I THINK THIS IS A GREAT THE WAY YOU GUYS WORK AND THE WAY YOU FIGURE THESE THINGS OUT MAKE TOTAL SENSE TO ME.

THEY DON'T MAKE ANY SENSE TO ME BUDGET WISE AND HOW WE'RE GETTING THE MONEY.

SO WITH THAT IN MIND WE'VE ALREADY TALKED ABOUT SOME TYPE OF COMPROMISE DEAL, BUT WE'RE TALKING THIS OVER AGAIN.

SO I GUESS THE QUESTIONS I WOULD HAVE, OTHER THAN ALL THIS STUFF IS.

CAN YOU EXPLAIN TO ME THE MEASURE AA AND THE MEASURE WW CONTINGENCY FUND? I KNOW WHAT THAT SORT OF IS. WE BUILT IN A CONTINGENCY.

IT'S REFERRED TO HERE AS BEING USED. I'D LIKE TO KNOW.

LET ME TRY TO DO SOME EASY MATH HERE. [LAUGHTER] YOU KNOW WHAT I'M TRYING TO SAY? THIS IS HOW MUCH OF THIS IS BEING PULLED OUT OF DEVELOPMENT WHEN IT'S CALLED A CONTINGENCY FUND? HOW MUCH IS INTEREST? BECAUSE IF WE'RE SPLITTING AT 75, 25, WHICH IN MY OPINION, AND FROM WHAT I'VE HEARD FROM OUR CONSTITUENTS, THAT WAS THE DEAL. SO IF THE CONTINGENCY WAS $10 MILLION, THEN I ASSUME $7.5 MILLION WAS CONSIDERED ACQUISITION CONTINGENCY AND ONLY $2.5 MILLION WAS FOR DEVELOPMENT CONTINGENCY.

I COULD BE WRONG. THERE MAY BE SOMEWHERE IN SOME DOCUMENTS THAT SAY DIFFERENTLY, BUT THAT'S WHAT MY CONSTITUENCIES LED TO BELIEVE AND SO AM I AT THIS POINT.

THERE'S ALSO THE INTEREST INCOME, WHICH I ASSUME SHOULD BE SPLIT THE SAME WAY.

I'M WONDERING IF THERE'S ANY WAY IT'S BEEN DOCUMENTED HOW IT'S BEEN DONE.

AND THEN TO COMPLICATE IT FURTHER, YOU KNOW, AND I AGREE WITH THIS 100%, EXCEPT NOW BECAUSE I THINK, YOU KNOW, WHEN YOU SAY IF YOU HAD TO SAID, WE'RE GOING TO USE $1 MILLION FOR THIS AND REJIGGER THIS KIND OF STUFF LIKE THAT, IT'D BE OKAY, BUT NOT WHEN IT'S $42 MILLION. BECAUSE NOW WE'RE GOING TO TALK ABOUT METRO AREAS, AND THAT'S WAY COMPLICATED. BUT IF IT'S EXPLAINED FROM PEOPLE WHO ORIGINALLY DID THIS, THIS WAS TO MAKE IT QUOTE EQUITABLE AND THAT WE WOULDN'T SAY, OH, WELL, WE'VE GOT THIS CONTINGENCY FUND OF $10 MILLION, WE CAN PUT IT IN OUR SPECIAL PROJECT.

NO, IT WAS SUPPOSED TO BE BY METRO. EVERYTHING WAS SUPPOSED TO BE BY METRO AREA SO THAT EVERYONE HAD A STAKE IN THIS.

AND THAT'S HOW YOU PASSED THE MEASURE IN 2008 OR.

YEAH, 2008 BECAUSE THE QUESTION IS GOING TO BE ASKED NOT BY ME, NOT JUST BY ME.

IT'LL BE ASKED BY, YOU KNOW, THE FOLKS THAT ARE GOING TO BE HERE IN THE NEXT FEW MEETINGS.

YEAH, I THINK I WANT TO GO BACK AND KIND OF PULL THE HISTORY OF WHAT WAS IN THE ORIGINAL ORDINANCE ON HOW WE SAID WE WOULD USE THE CONTINGENCY FUNDS IN TERMS OF THE INTEREST, THE WAY WE WERE SUPPOSED TO USE THAT WAS BASED ON EVERY TIME WE DID THE CENSUS AND WE GOT THE NEW THE NEW POPULATION COUNTS.

ANY TIMES THAT, FOR EXAMPLE, DIABLO METRO INCREASED.

AND SO IT WAS SAID THAT WE WOULD BE DEVOTING THE INTEREST FUNDS TOWARDS PROJECTS IN THE DIABLO METRO AREA TO ACCOUNT FOR THAT INCREASE.

AND SO THAT WAS WHERE THE INTEREST FUNDS WERE SUPPOSED TO GO, WAS WHENEVER WE HAD CHANGES IN POPULATION TO BE ABLE TO ADJUST THE APPROPRIATIONS, WE'D USE THE INTEREST FUNDS IN THAT AREA. BUT IN TERMS OF THE CONTINGENCY, LET ME LET ME GO BACK, PULL THE, THE INFORMATION AND PUT TOGETHER A PROPER LIKE WHAT THE EXACT PERCENTAGE WAS, WHAT WE'VE ALLOCATED TO DATE AND WHERE IT'S GONE.

AND WE CAN DO THE SAME THING WITH THE INTEREST FUNDING AS WELL. OKAY.

OKAY WE'RE SPENDING A LOT OF MONEY ON FIRE NOW. WE'VE ALWAYS SPENT A LOT OF MONEY, BUT IT'S GENERALLY BEEN VERY, VERY, VERY LUCKY. OBVIOUSLY WITH THE POLITICAL CLIMATE ON GETTING LOTS OF GRANTS.

SO NOW WE'RE COMMITTING TO WHAT IS IT, $1.6 MILLION OF OUR GENERAL FUND AND THEN ANOTHER $780,000.

I'M SORRY, I THESE FIGURES ARE ALL SPINNING IN MY HEAD RIGHT NOW, BUT IT'S A BIG COMMITMENT FROM US.

SO AT SOME POINT WHEN DIRECTOR COFFEY SAID, WHY DON'T WE HAVE OUR OWN GOATHERD? AND WHEN I LOOKED AT WHAT WE PAID FOR OUR LAST GOAT CONTRACT AND IT'S COMING OUT OF THE GENERAL FUND,

[01:35:02]

[LAUGHTER] WE'VE SAVED $200,000 RIGHT THERE. [LAUGHTER].

I LOVE IT WE GOT A FEW RANCHES WE COULD USE [LAUGHTER] OUT IN THE EAST.

THAT JUST THREW ME. [LAUGHTER]. I ACTUALLY GOT A DETAILED RESPONSE TO THAT PROPOSAL FROM THE FIRE CHIEF SEVERAL YEARS AGO. I'D BE HAPPY TO SHARE IT.

SO I WILL BE WILLING TO ADVANCE THIS, YOU KNOW, AS REQUESTED.

WITH THE UNDERSTANDING THAT I BELIEVE DENNIS AND I HAVE.

AND OUR READ OF OUR BOARD THAT WE VERY MUCH WANT TO LOOK AT THESE THE SPECIFIC ALTERNATIVE.

OKAY THAT YOU CAN TAKE ACQUISITION MONEY FROM A SPECIFIC PARK LIKE CONCORD, AND PUT IT INTO DEVELOPMENT OF CONCORD FOR A VERY GOOD REASON.

AND THAT ISN'T CONTROVERSIAL. SO YOU CAN ELIMINATE $8 MILLION FROM THAT $40 MILLION RIGHT AWAY.

WHEN I WENT THROUGH THE LIST AND DID SIMILAR, YOU KNOW, THIS IS PROBABLY NOT CONTROVERSIAL.

THE NUMBER I CAME UP WITH WHERE WE ARE DEFINITELY TRANSFERRING ACQUISITION MONEY FROM ONE AREA TO DEVELOPMENT MONEY SOMEWHERE ELSE, PERHAPS UNRELATED, MAYBE CLOSE BY, BUT THAT NUMBER IN MY MIND WAS AROUND $23.5 MILLION.

BECAUSE I THINK THAT WHEN WE GET DOWN TO WHAT HAD THE STAKEHOLDERS IN MIND WHEN THEY AGREED TO SUPPORT WW, THAT $23.5 MILLION IS WHERE IT'S GOING TO REALLY STICK FOR THE BOARD.

AND THEN IT'S GOING TO GET MORE COMPLICATED BECAUSE THE MORE TIME I'VE SPENT WITH THIS AND ACTUALLY LOOKED AT EACH OF THESE PROJECTS, ONE OF THE THINGS THAT JUST FLASHED WAS, OH MY GOODNESS, OUR COSTS JUST WENT UP A LOT.

YEAH. ONLY A COUPLE OF YEARS AGO, I HAVE BEEN OPERATING ON THE ASSUMPTION THAT DEVELOPING THE OLD GOLF COURSE AND GETTING IT OPEN HAD A COST OF AROUND $13 MILLION.

JUST A COUPLE OF YEARS AGO THAT WAS THE NUMBER WE TOSSED AROUND DURING OUR COMMUNITY SESSIONS ALL OF A SUDDEN NOW THAT THIS HAS COME UP, THIS BEING THE PROJECTIONS, WE HAVE NEW NUMBER, $21 MILLION. THIS IS WHERE WE ALREADY HAVE THE PARKING LOT [LAUGHTER] AND A LOT OF INFRASTRUCTURE.

SO, YOU KNOW, SOMEONE'S GOING TO HAVE TO EXPLAIN TO ME AT SOME POINT HOW WE WENT FROM $13,000,000 TO $21,000,000. YEAH.

AND I REMEMBER WHEN SENATOR GLAZIER GOT US AN APPROPRIATION OF $5 MILLION FOR THAT.

MY RESPONSE TO HIM WAS, THAT GETS US REALLY CLOSE TO $13 MILLION.

AND NOW IT'S $21,000,000. AND I DON'T REMEMBER HOW, WHERE, WHEN, HOW THAT HAPPENED.

BUT I'M NOW VERY AWARE OF IT FROM THIS PROCESS, RIGHT? WHAT WE'RE GOING THROUGH WITH THE WW IMPLICATIONS.

AND, YOU KNOW, I SHARED ALREADY, I REMEMBER IN 2008 REALLY WORKING TO GET A BLACK STAR ON THE MAP FOR JERSEY ISLAND, BECAUSE AS A CONTRA COSTA CLOSE TO THIS PARK DISTRICT, I KNEW THAT FOR MORE THAN 25 YEARS, WE HAVE TARGETED THE NEED FOR FAMILY CAMPGROUNDS IN CONTRA COSTA WHEN WE WERE OPERATING FOR IN ALAMEDA, AND THAT JERSEY AND PORT COSTA WERE IDENTIFIED AS SITES.

BUT THAT LITTLE BLACK STAR ON JERSEY ISLAND WAS TO MAKE SURE THERE WAS MONEY THERE IF WE WERE ABLE TO OR IN NEED OF ACQUIRING LAND FOR A CAMPGROUND. AND YOU KNOW WHAT? FOR THE LAST 15 YEARS, THAT KIND OF WENT AWAY.

AND NOW IT'S BACK BECAUSE THEY'RE SELLING THE ISLAND AND THEY'RE SELLING THE ISLAND.

AND IT'S TO BE FUNDED BY A CONSORTIUM THAT LOOKS VERY MUCH LIKE THE GROUP OF FUNDERS WE GET WHEN WE ACQUIRE LAND OUT THERE.

RIGHT? AND ALL OF A SUDDEN, AND THEY'RE ALL REALLY HAPPY WITH A CAMPGROUND OPERATED BY THE PARK DISTRICT ON THAT

[01:40:05]

AND SO WE'RE TAKING DELTA ACCESS FUNDING HERE OUT SO THAT IT'S NOT GOING TO BE THERE.

HOWEVER, WE'RE USING IT AT BIG BREAK, WHICH IS CERTAINLY ADVANCING DELTA ACCESS, ESPECIALLY WITH THE SHADE GROUNDS RIGHT ON THE RIVER THERE, YOU KNOW, AND AGAIN, COSTS ONE PUT UP A TENT, YOU KNOW, [LAUGHTER] AND WE'RE NOW UP TO $2.1 MILLION FOR THIS.

SO, YOU KNOW, IT'S COMPLICATED AND IT'S FRUSTRATING PROCESS.

BUT WHAT YOU FOLKS HAVE DONE IS PERFECTLY REASONABLE IN WHAT YOU'RE ADVANCING AND WHAT YOU'RE PROPOSING.

AND THE QUESTIONS WE HAVE ARE JUST BY REASON OF IT BEING VERY COMPLICATED, AND THAT WE HAVE TO BE VERY CAREFUL BECAUSE FIVE PLUS YEARS FROM NOW, WE COULD BE IN A POSITION WHERE, OOPS [LAUGHTER], WE SHOULDN'T HAVE DONE THAT, BECAUSE A LOT OF ACCUSATIONS I'M, I KNOW OF IN THE MARSH CREEK CORRIDOR, BLACK DIAMOND, DEER VALLEY, THERE ARE A BUNCH OF PROPERTIES OUT THERE THAT WE TARGETED.

WE EITHER MADE OFFERS ON THEM OR, YOU KNOW, THEY'RE STILL PENDING AND WE'RE DEPLETING MONEY AVAILABLE FOR THAT HERE IN THIS PROPOSAL FROM ROUND VALLEY AND CLAYTON RANCH.

SO I HAVE TO BE CONVINCED THAT IF, YOU KNOW, RANCHER JONES COMES TO US AND SAYS, NOW YOU CAN BUY MY RANCH. HOW ARE WE GOING TO WHAT ARE WE GOING TO USE TO LEVERAGE AND GET ALL THE FUNDERS TO SUPPORT THAT? IF THERE'S NO MORE MONEY LEFT IN CLAYTON RANCH, FOR INSTANCE.

SO THESE ARE THE QUESTIONS I GOT TO DEAL WITH, AND I THINK I'M GOING TO GET SUPPORT FROM THE ACTING GENERAL MANAGER ON THESE, BUT, I MEAN, JUST IT'S THERE'S A BIG CAVEAT TO THE COMMITTEE ADVANCING THIS TO THE TO THE FULL BOARD.

THE OTHER ONE IS I KNOW THE BOARD. THE OTHER CAVEAT IS, I KNOW THE BOARD IS VERY INTERESTED IN GETTING INTO THE PROPOSED REORGANIZATION. SO I'M ALSO WILLING TO, AS PART OF THIS BUDGET PACKAGE, ADVANCE IT.

BUT I THINK THEY'RE GOING TO BE CONTINUING QUESTIONS FROM THE BOARD AS IT GOES TO THE FULL BOARD, MAX. YEAH WELL, I COULD JUST SHARE THAT WE ARE ALSO WORKING ON AN ALTERNATIVE PROPOSAL RELATED TO THE REORG FOR BRINGING ON NOVEMBER 18TH. TERRIFIC OKAY. YEAH. SO YOU'VE PREDICTED [LAUGHTER] WHERE THERE MAY BE A BIT OF HESITATION WITH THE AS IS PART OF THIS PACKAGE. SO WITH THAT, DO YOU HAVE ANYTHING WELL, JUST I SUSTAIN WHAT YOU SAY. I MEAN, [LAUGHTER] THERE IS THE PUBLIC.

THIS IS A GREAT PLAN. THIS IS A GREAT WAY OF DOING THINGS.

IT'S JUST I THINK IT'S. WE'RE TAKING MONEY FROM SOMETHING ELSE AND PUTTING IT INTO WHAT WE NEED.

I MEAN, I NEED, I NEED ICE CREAM, LET'S SAY THAT.

BUT I ALSO NEED TO PAY RENT. BUT I REALLY LIKE ICE CREAM BETTER, SO THAT'S A SILLY ANALOGY, BUT IT'S TRUE. THERE ARE THERE ARE THINGS WE PROMISE PEOPLE.

THERE ARE THINGS WE TELL PEOPLE AT OUR BOARD MEETINGS WHEN WE SAY, OH NO, WE CAN'T.

WE? VARGAS, VARGAS PLATEAU. SOME OF THE PROPERTIES OUT THERE, THERE'S 3 OR 4 PARCELS.

OH, NO. KEY PARCELS THAT WE IDENTIFY AS KEY. AND WE SAY, WELL, THEY'RE NOT AVAILABLE [LAUGHTER].

I JUST GOT IT REPRODUCED BY ONE OF OUR MAIN CRITICS.

HE PRODUCED THE MLS IT'S ON SALE. IT'S ON IT'S ADVERTISED AS FOR SALE.

YOU KNOW, I GET IT. I UNDERSTAND WE GOT A LOT OF STUFF TO DO, BUT THIS, THIS COMPLICATES THINGS.

AND THEN TO HAVE A REORGANIZATION THAT CALL IT ANYTHING YOU WANT AND BALANCE IT ANY WAY YOU WANT.

BUT ADDING TWO GENERAL MANAGERS, ASSISTANT GENERAL MANAGERS, WHEN WE SAY WE DON'T HAVE ENOUGH MONEY IN OUR GENERAL FUND TO PAY FOR THE PROJECTS WE DO, WHICH IS WHAT IT'S SUPPOSED TO COME FROM, AND THAT WE TOOK IT FROM SOMEWHERE ELSE. I DON'T KNOW HOW IT SELLS, AND I ONLY LOOK AT I FULLY EXPECT AND I FULLY HAVE BEEN LED TO BELIEVE AS DIRECTOR ROSARIO, THAT WAS HIS BANNER AROUND HERE, AS A WORKER IN THIS DISTRICT, WHO WORKERS HAVE BEEN TOLD SINCE 2000 OR SINCE 1988. OH, WE PROMISE AS SOON AS WE GET THESE LAND BONDS DONE, WE'RE GOING TO GET A BOND MEASURE OR A PARCEL TAX THAT'S GOING TO FUND THE MAINTENANCE.

AND SO, YOU KNOW, FOR HOW MANY YEARS IT'S BEEN WE FULLY EXPECT THAT TO HAPPEN.

AND WE'VE BEEN KIND OF LED TO BELIEVE THAT THAT MIGHT OCCUR IN 2028.

[01:45:03]

I THINK IT'S I MEAN, I THINK WE NEED TO. WELL, I WON'T TALK.

I'LL TALK TO MY OPINIONS LATER. AND, YOU KNOW, I ALSO FEEL IN A LOUSY POSITION HERE WE DON'T HAVE A THIRD.

I'M TOTALLY MY OPINION NOW IS TO SAY NO, I DON'T WANT THIS TO GO FORWARD.

I JUST CAN'T I WON'T VOTE FOR IT UNLESS WE DO SOME MAJOR AMENDMENTS TO THIS ACQUISITION VERSUS DEVELOPMENT AND DEAL WITH HOW CONTINGENCIES ARE SPENT AND HOW THE METROPOLITAN AREAS ARE BEING BECAUSE I DON'T KNOW ANY BETTER, POSSIBLY STRIPPED OF THEIR FUNDING TO SUPPORT SOME OF THESE THINGS.

AND ALSO THE REORG, WHICH YOU KNOW, AND I DON'T KNOW HOW WE'RE GOING TO DO THAT.

I HONESTLY DON'T KNOW HOW WE'RE GOING TO DO THAT, BECAUSE MY EXPERIENCE HERE IS WE'LL TALK ABOUT IT ON DECEMBER 2ND.

WE'LL HAVE A MILLION PEOPLE HERE, WHICH WILL BE PRESSURING US FOR A NUMBER OF THINGS. AND THEN, FROM MY UNDERSTANDING, I'VE BEEN HERE. THIS IS MY 11TH BUDGET, USUALLY DECEMBER 16TH, AS WE ALL COME IN HERE AND WE SAY, HEY, NICE BUDGET MOTION SECOND BING AND THEN WE HAVE CAKE AND SAY, MERRY, MERRY, HAPPY NEW YEAR AND LET'S GET OUT OF HERE.

I DON'T THINK IT'S GOING TO GO THAT SIMPLY. SO UNLESS WE CAN HAVE SOME TYPE OF ASSURANCE AND I THINK IT'S GOING TO NEED TO BE A SPECIAL MEETING BECAUSE I THINK THESE THINGS AND IN THE PAST, THAT'S THAT'S HOW IT'S BEEN.

HERE IT IS COME ON VOTE ON IT TODAY. HERE IT IS.

WHOA. WE GOT WE GOT TO DO IT TODAY. I DON'T I JUST I'M HESITANT TO DO THAT, BUT I'M SURELY NOT GOING TO BLOCK THIS BECAUSE I THINK THE FULL BOARD NEEDS TO SEE IT.

SO I WILL VOTE IN FAVOR OF THIS TODAY. BUT UNLESS THERE'S SOME AMENDMENTS. I JUST I JUST SAY, I MEAN, I THINK THE GREAT OPPORTUNITY IS THAT NOVEMBER 18TH AT THAT BOARD MEETING, YOU'RE GOING TO GET AN UPDATE WITH SOME ALTERNATIVE PROPOSALS.

AND THEN HOPEFULLY ONCE YOU GET TO THIS, WE HAVE AN OPPORTUNITY TO HEAR BACK FROM YOUR BOARD ABOUT THOSE ALTERNATIVE PROPOSALS SO THAT WHEN YOU GET TO THE SECOND, IT'S LESS CHALLENGING. I THINK WE'RE TRYING TO BE RESPONSIVE AND AND WILL THAT BE A CLOSED SESSION OR AN OPEN SESSION? AND I UNDERSTAND IT PROBABLY. WELL, I'M THINKING IT'S A IT'S NOT AN EMPLOYEE IT'S A CLASSIFICATION MATTER EMPLOYEE CLASSIFICATION.

NOPE? IT'S OPEN SESSION I'LL JUST ADD TO THAT YEAH. WE ARE DOING A LOT OF LISTENING RIGHT NOW AND TRYING TO PUT TOGETHER SOMETHING THAT THE BOARD WILL FEEL COMFORTABLE WITH, AND THAT IS TAKING YOUR FEEDBACK INTO CONSIDERATION SO THAT WE ALL WANT ON THE 16TH TO HAVE A RECOMMENDATION THAT YOU ALL FEEL COMFORTABLE WITH AND THAT'S GOING TO PASS.

SO WE CAN HAVE A BUDGET ON JANUARY 1ST. SO THAT'S WHAT THAT'S WHAT WE'RE WORKING ON RIGHT NOW AND I DON'T KNOW LEGALLY, COULD WE PASS A BUDGET WITHOUT ANY RESOLUTION ON THE REORGANIZATION? AND COULD WE DO IT WITHOUT ANY RESOLUTION ON THIS PROJECT BUDGET? WE CAN STILL PAY OUR EMPLOYEES. WE CAN STILL GO ON.

PLANNERS ARE STILL GOING TO PLAN. WE'VE GOT, WHAT? 92 OTHER PROJECTS THAT WE COULD BE PLANNING ON IF WE NEEDED MORE TIME.

OR ARE WE GOING TO BE PUSHED UP AGAINST THE WALL AND SAY IT'S NOW OR NEVER? DIRECTOR WAESPI YOU YOU'RE ASKING. LEGALLY, WHETHER OR NOT YOU APPROVE WHAT YOU'RE BEING ASKED TO DO IS APPROVE SOME NEW POSITIONS.

YOU IF YOU DON'T, IT'S TOTALLY UP TO THE BOARD WHETHER OR NOT THEY DECIDE TO APPROVE THOSE NEW POSITIONS OR NOT.

THAT'S WHAT YOU'RE BEING ASKED TO DO, IS ACTUALLY APPROVE A FEW NEW POSITIONS.

YEAH CAN WE JUST SAY, AS I'M ALWAYS TOLD, THE BUDGET IS A LIVING DOCUMENT IT CAN CHANGE ALL THE TIME.

SO IN JANUARY, IF WE DID HAVE SOME SESSIONS AND TALKED IT OVER AND HAD IT EXPLAINED TO ME BECAUSE I HAD A SESSION WITH THE TWO DEPUTY GENERAL MANAGERS THE OTHER DAY, AND I WAS TOTALLY OPPOSED TO ALL THIS STUFF. AND I'VE BEEN CONVINCED THAT A LOT OF IT MAKES SENSE, BUT IT HAD NEVER BEEN EXPLAINED TO ME BEFORE. BUT I THINK I'M GOING TO NEED A LITTLE MORE EXPLAINING.

AND I THINK THE REST OF THE BOARD, WHO I DON'T KNOW IF THEY'VE MET WITH THE TWO DGMS ABOUT THIS SUBJECT YET, BUT I THINK. I JUST WANT TO REMIND YOU, WE HAVE WENDY GM RIGHT NOW AND WEN ACTING GENERAL MANAGER.

PARDON ME I'M SO SORRY, I AM VERY SORRY. YEAH I'LL JUST I'LL JUST SAY LIKE WE INTEND TO BRING TO YOU A PROPOSAL THAT YOU CAN SUPPORT.

AND SO WE'RE DOING A LOT OF LISTENING RIGHT NOW. AND I UNDERSTAND YOU'RE DOING A LOT OF THINKING AND SO, YEAH, WE WILL TRY TO BRING YOU SOMETHING THAT IS, THAT IS GOING TO BE IMPLEMENTABLE ON JANUARY 1ST, IT IS DESIRABLE TO HAVE IT ALL FIGURED OUT AT THAT MEETING SO THAT WE'RE NOT LIKE PUSHING THINGS OFF THAT ARE GOING TO CAUSE CHAOS AND DIFFICULTY FOR US TO FIGURE OUT LATER. SO WE WOULD LIKE TO HAVE LIKE A CLEAN RECOMMENDATION AT THAT MEETING.

GREAT

[01:50:05]

GREAT THANK YOU. AND I WANT TO EMPHASIZE THAT CLEARLY, LOTS OF REALLY GOOD WORK HAS GONE INTO THE ENTIRETY OF THIS PACKAGE YOU'RE PRESENTING.

IT'S TOTALLY AMAZING WORK, AND WE'RE VERY APPRECIATIVE OF THE EFFORT THAT HAS GONE INTO THIS ENTIRE PACKAGE.

I AGREE SO BEFORE WE ENTERTAIN A MOTION, AS COUNSEL HAS POINTED OUT, IS THERE PUBLIC COMMENT? WE DO, MEDOW DARCY. OKAY. GOOD AFTERNOON, BOARD OF DIRECTORS.

MY NAME IS MEDOW DARCY, AND I'M HERE ON BEHALF OF AFSCME LOCAL 2428.

FIRST I WANT TO SAY CONGRATULATIONS TO DIRECTOR KORTEN, AND I'M SORRY, NOT DIRECTOR, I APOLOGIZE.

I GOT TO GET THIS RIGHT. ACTING GENERAL MANAGER MAX KORTEN ON HIS APPOINTMENT.

WE LOOK FORWARD TO WORKING WITH YOU AND I'M VERY PLEASED TO HEAR THAT THERE IS ANOTHER LOOK BEING TAKEN AT THIS REORG.

I DID WANT TO SAY A FEW THINGS ABOUT THE REORG.

WE ALSO SHARE THE HESITATION ON THIS REORGANIZATION.

WE FEEL LIKE THERE IS A LOT OF INFORMATION THAT WE DON'T HAVE THAT WE'RE STILL TRYING TO GATHER.

WE JUST MET LAST WEEK FOR THE FIRST TIME WITH THE DISTRICT AND HAD IDENTIFIED MULTIPLE IMPACTS.

WE DIDN'T GET A LOT OF INFORMATION BACK. WE HAVE NOT MET WITH ANY OF THE MANAGERS IN THOSE DIVISIONS TO UNDERSTAND BETTER WHY THESE CHANGES ARE HAPPENING.

MANY ARE QUITE DISRUPTIVE. TO OUR EMPLOYEES, THERE'S A LOT OF UNANSWERED QUESTIONS ABOUT LOCATIONS.

FOR EXAMPLE CERTAIN PEOPLE ARE BEING MOVED IN DIFFERENT DIVISIONS, BUT THEY WORK IN VERY DIFFERENT LOCATIONS AND SUPERVISE PEOPLE IN MULTIPLE LOCATIONS.

AND SO THE QUESTION IS, YOU KNOW, WILL THEY BE MOVED? WELL, NOT AT THIS TIME.

YOU KNOW, PEOPLE WANT TO [LAUGHTER] UNDERSTAND BETTER IF THEY'RE GOING TO BE MOVED. AND WE UNDERSTAND THAT SOME OF THOSE ANSWERS ARE BECOMING BECAUSE WE DON'T HAVE SPACE, BUT WE HAVE A BUILDING ACROSS THE STREET THAT'S COMING ONBOARD VERY SOON.

AND, YOU KNOW, SO IT DOES SEEM A LITTLE PREMATURE TO BE MOVING PEOPLE AROUND AND THEN MOVE THEM AGAIN.

AND I THINK THAT'S VERY DIFFICULT FOR PEOPLE.

THERE'S ALSO IN THIS BUDGET, THERE'S NO ADDITIONS OF LINE STAFF TO ADDRESS THE LESS THAN MINIMUM STAFFING MODEL.

I NO LONGER CALL IT THE MINIMUM STAFFING MODEL. I CALL IT THE LESS THAN MINIMUM STAFFING MODEL. BECAUSE WE'RE NOT EVEN ABLE TO COVER PEOPLE'S ABSENCES.

IT ALSO TAKES WORK AND DIRECT REPORTS THAT ARE RIGHT NOW ASSIGNED TO MANAGERS AND ASSIGNS THEM TO AFSCME SUPERVISORS WITH NO PROPOSED INCREASE IN COMPENSATION OR ADDITIONAL LEAD OR STAFF SUPERVISOR POSITIONS. IT ALSO DELETES THE PIPELINE POSITIONS, WHICH HAVE LONG BEEN A WAY TO HAVE STAFF ASSOCIATED WITH LAND ACQUISITIONS SO THAT WE CAN BE ENSURED THAT WE'RE NOT JUST ACQUIRING MORE LAND WITHOUT STAFF.

WE ALSO HAVE A LOT OF MANAGER POSITIONS THAT ARE BEING ADDED.

WE CURRENTLY HAVE A LOT OF ISSUES WITH MANAGERS DOING OUR WORK.

FOR EXAMPLE, THE DELETION OF THE PUBLIC INFORMATION SUPERVISOR.

THEY'RE ADDING A MARKETING AND MEDIA MANAGER DOING VERY, VERY SIMILAR WORK.

SPECIAL PROJECT OFFICER THAT WAS RECENTLY ADDED IS DOING A LOT OF SPECIAL PROJECTS, WHICH OUR PROJECT MANAGERS DO.

WE HAVE A LOT OF MANAGEMENT ANALYSTS THAT ARE DOING VERY SIMILAR ADMINISTRATIVE ANALYST WORK.

WE HAVE WORK BEING CONTRACTED OUT BECAUSE WE DON'T HAVE ENOUGH STAFF.

THERE'S QUITE A FEW POSITIONS THAT ARE BEING ADDED THAT WE OBJECT TO, AND I THINK THERE'S A LOT OF DETAILS HERE THAT NEED TO BE WORKED OUT. SO WE'RE ASKING THAT YOU JUST PULL IT OUT THANK YOU MADAM. THANK YOU FOR SHARING YOUR INTERNAL SURVEY WITH US.

I READ IT CAREFULLY. THANK YOU WITH THAT. WE STILL HAVE WE HAVE ONE MORE PUBLIC COMMENT.

WE HAVE MORE PUBLIC COMMENT? SURE I SEE PUBLIC COMMENT [LAUGHTER]. HI, JIM.

JIM, WOULD YOU PLEASE UNMUTE? YES, YES GREAT JIM HANSEN CONSERVATION COMMITTEE, CALIFORNIA NATIVE PLANT SOCIETY.

FIRST OF ALL, I'LL JUST QUICKLY SAY THERE'S A LOT OF INFORMATION.

I'VE SPENT A GOOD DAY YESTERDAY READING THE BUDGET BECAUSE I FOUND IT ONLINE.

AND THANK YOU FOR YOUR HARD WORK ON THIS. AND THERE'S A LOT HAPPENING ALL AT ONCE.

SO I THINK I WANT TO JUST POINT OUT SOMETHING THAT I THINK WE'RE SEEING IN THE BUDGET THAT I WOULD ASK THE BOARD TO CONSIDER HIGHLIGHTING AS WE KIND OF WORK THROUGH A FEW THINGS IN THE SHORT TIME AHEAD.

[01:55:03]

AND I KIND OF WE'VE TALKED ABOUT THIS FOR A LONG TIME AND SPOKEN WITH STAFF.

I SEE A LOT OF I WAS LOOKING AT THE I'LL JUST LOOK AT THE STEWARDSHIP, WHICH IS A MAIN FOCUS THERE.

THAT'S JUST DO A LITTLE CALCULATION. THAT'S A LITTLE A LITTLE MORE THAN 2% OF THE TOTAL BUDGET WHERE WE'VE GOT PROBABLY 90% FOR 95% OF OUR RESPONSIBILITY IN NATURAL LANDS.

AND AS YOU. I HOPE SOME OF YOU WERE ABLE TO CATCH THE RECENT REGIONAL PARKS ASSOCIATION STEWARDSHIP SEMINARS, PARTICULARLY ONE BY YOUR RETIRED ECOLOGICAL SERVICES PERSON, BECKY TUDEN, TALKING ABOUT THE NEED FOR ACTIVE MANAGEMENT.

AND FROM THE CNPS STANDPOINT, WE DO A LOT OF VOLUNTEER WORK FOR THE FOR THE PARK DISTRICT BECAUSE IT'S IMPORTANT TO ALL OF US, AND ONE OF THEM IS SEEING WHAT'S HAPPENING TO SOME OF OUR LOCALLY RARE PLANTS, THINGS THAT PEOPLE COME OUT TO SEE AND ENJOY.

THE REASON WE, IN A WAY PROVIDE ACCESS AND WE'RE NOT REALLY SEEING THE RESOURCES TO HANDLE THAT ON A, ON A VASTLY SMALL SCALE, JUST ON THE MEASURE FF I'M SEEING IN THE BUDGET.

AND I CAN QUOTE THE PAGE, $40,000 FOR AN ECOLOGICAL ASSESSMENT.

IT THERE'S WE KNOW THAT THERE'S A 12 PERSON WILDFIRE CREW.

THERE'S NOTHING A CREW FOR RESTORATION. WE KNOW THERE'S A TRAIL CREW, THERE'S NOTHING FOR RESTORATION.

AND SO I WOULD ASK YOUR BOARD TO ASK FOR A CLOSER LOOK AT WHAT'S NEEDED THERE.

AND I'LL JUST KIND OF TRY TO FINISH REAL QUICKLY AND SAY.

YEAH THE 2026 TO 2030 CAPITAL PROJECTS BUDGET, THAT'S A LOT, A LOT TO ABSORB.

AND HOW CAN WE DO THAT WHEN WE DON'T HAVE A DISTRICT PLAN IN PLACE WITH CLEAR GOALS AND EVEN SOME KIND OF QUESTIONS ABOUT HOW TO MAKE THAT MORE USEFUL TO ALL OF US? SO I'M TRYING TO THINK OF WHAT WE CAN HANDLE.

AND I REALLY APPRECIATE THE BOARD KIND OF FOCUSING IN ON WHAT'S APPROPRIATE, WHAT CAN BE HANDLED, AND WHAT'S THANK YOU JIM. AND THAT'S IT FOR PUBLIC COMMENT.

THAT'S IT FOR PUBLIC COMMENT. SO WE WILL. DENNIS I WILL SEEK A MOTION TO APPROVE THE 2026 PROPOSED OPERATING PROJECT AND PROGRAM BUDGET FOR THE PURPOSES OF ADVANCING IT TO THE FULL BOARD.

AND I WILL MAKE THAT MOTION RELUCTANTLY, I GUESS IF THERE'S ANY DISCUSSION AFTER.

WE NEED A SECOND, I'LL MAKE THAT MOTION. SECONDED.

AND AS MY DISCUSSION ITEM IS THAT WE HAVE SOME ASSURANCES, PROMISES.

WE'VE HAD LOTS OF ASSURANCES, PROMISES. I'M GOING TO BASE MY ACTIONS ON TRUST, AND I HOPE THAT WE WILL.

ALL THE THINGS WE TALKED ABOUT TODAY ARE REVISITING THIS AND REVISITING IT AND GIVING IT ENOUGH TIME AND NOT BEING PUT UP AGAINST THE WALL SAYING, WE HAVE TO DO THIS, WE HAVE TO DO THIS, WE HAVE TO DO THIS. AND THEN I'M LOOKING FOR GOODWILL IN EVERYBODY, AND I WILL, BECAUSE I DON'T WANT TO HAVE TWO PEOPLE MAKE THIS TYPE OF DECISION OR ONE PERSON.

I COULD VOTE NO AND IT WOULDN'T GO RIGHT? SO I WILL DO IT RELUCTANTLY.

BUT I WANT THE FULL BOARD TO HEAR THIS, UNDERSTOOD YEAH THANK YOU. OKAY WITH THAT, WE'LL TAKE A VOTE.

ALL IN FAVOR, SAY AYE. AYE. PASSES. THANK YOU VERY MUCH.

THANK YOU ONE MORE ITEM. YEAH THIS ONE IS ONE [LAUGHTER] OF THE LEAST INTERESTING THINGS YOU FOLKS DO FOR US EVERY YEAR. TRY TO EXPLAIN THE GANN LIMIT.

I HAD TO DEAL WITH THAT FOR LOTS OF MY CAREER [LAUGHTER].

YEAH BUDGET THAT REQUIRED BY STATE LAW THAT WE HAVE TO ADOPT THIS GANN LIMIT.

SO WE'RE GIVING YOU A PREVIEW OF WHAT IT IS. AND THEN WE ARE GOING TO INCLUDE IT IN THE ADOPTION OF THE BUDGET ON DECEMBER 16TH. SO JUST QUICKLY TO WALK YOU THROUGH WHAT THE GANN LIMIT IS.

THERE WE GO. SO ARTICLE XIII B OF THE STATE CONSTITUTION GIVES US THIS FORMULA WHERE WE CALCULATE THE AMOUNT THAT WE CAN APPROPRIATE OF TAXES EVERY YEAR,

[02:00:04]

SO EVERY CITY AND COUNTY, EVERYONE HAS TO PASS THIS, THIS GANN.

IT'S CALLED GANN. I BELIEVE THE PERSON WHO ORIGINALLY CAME UP WITH IT WAS NAMED GANN.

SO YOU HAVE TO OUR LIMIT WAS $547.7 MILLION. WE TOOK THE ANNUAL ADJUSTMENT FACTOR TO DO OUR NEW CALCULATION FOR 2026.

AND IT COMES OUT HIGHER $589.7 MILLION. HOWEVER, WHAT WE ARE APPROPRIATING THAT'S SUBJECT TO THE GANN LIMIT IS ONLY $213.4 MILLION, SO WELL BELOW THAT APPROPRIATION LIMIT.

AND SO WE WOULD LIKE THE FINANCE COMMITTEE TO RECOMMEND THAT THIS BE INCLUDED IN THE MATERIAL THAT COMES TO THE BOARD FOR APPROVAL.

OKAY, DIRECTOR ANY QUESTIONS? [LAUGHTER] MY ONLY QUESTION WOULD BE, HAVING DONE THIS A MILLION TIMES, HAS ANYBODY EVER GONE OVER THE LIMIT? YES THE CITY OF BERKELEY GOES OVER THE GANN LIMIT AND THEY HAVE TO BRING IT TO THE VOTERS EVERY YEAR SO I HAVE TO VOTE OH MY. YEAH. SO MAYBE THERE ARE OTHERS, BUT IT'S YEAH, THAT'S WHAT I KNOW ABOUT IT'S OKAY GREAT. I WOULD BE HAPPY TO MAKE THAT MOTION UNLESS YOU HAVE A QUESTION OR TWO. WELL, WE PROBABLY HAVE PUBLIC COMMENT. [LAUGHTER] NO PUBLIC COMMENT.

NO PUBLIC COMMENT. SO MOTION TO APPROVE I WILL MAKE THE MOTION. AS PRESENTED. I'LL SECOND IT.

THANK YOU. TAKE A VOTE. ALL IN FAVOR AYE. AYE.

I HAD CLIENTS WHO COULDN'T CALCULATE IT BECAUSE THEY DIDN'T HAVE THE RECORDS FROM THE 1970S WHERE THE BASE CALCULATIONS ARE MADE OR SOMETHING LIKE THAT.

IT WAS REALLY STRANGE. I HAVE NO IDEA WHAT BECAME OF THAT ISSUE FOR THEM.

THANK YOU VERY MUCH. THAT BRINGS US, I BELIEVE, TO THE END OF THE ACTION AGENDA.

WE HAVE ITEM 5, WHICH IS INFORMATIONAL ITEMS. ANY INFORMATION? NONE FROM ME. ANY ANNOUNCEMENTS? NO ANNOUNCEMENTS. THEN NOT TOO BAD 1:00 P.M. WE WILL STAND ADJOURNED.

THANK YOU VERY MUCH, EVERYONE, FOR ALL THE WORK AND EFFORT.

* This transcript was compiled from uncorrected Closed Captioning.