[00:00:07]
          THANK YOU SO MUCH. WELCOME TO TONIGHT'S BUDGET AND FINANCE COMMITTEE MEETING. MR. CLARK, LET THE RECORD REFLECT. WE HAVE MYSELF AND COUNCIL PERSON GERLACH PRESENT. I BELIEVE COUNCIL PERSON IS ABSENT TODAY. CORRECT? RIGHT. SO WE CAN START WITH THE FIRST THING ON OUR AGENDA, WHICH IS A REVIEW OF OUR ANNUAL COMPREHENSIVE FINANCIAL REPORT. SO I'LL PASS IT OFF TO ADMINISTRATION. THANK YOU. THANK YOU. ALL RIGHT. GOOD EVENING EVERYONE. I'M JEN KIBBEY WITH MORE DISTAL. SO I'M GOING TO HIGHLIGHT THE 2025 AUDIT REPORT FOR THE CITY. THE FIRST COUPLE SLIDES IF YOU DON'T MIND. YES. THAT'S PERFECT RIGHT THERE. THESE FIRST COUPLE SLIDES ARE SUMMARIZATION OF WHAT WE CALL COMMUNICATION TOOLS TOWARDS OF GOVERNANCE IN ACCORDANCE WITH OUR AUDITING STANDARDS ARE REQUIRED TO HAVE THESE STANDARD COMMUNICATIONS AS OUTLINED IN THE LETTER. SO WE TALK ABOUT OUR RESPONSIBILITIES IN ACCORDANCE WITH THE GENERALLY ACCEPTED ACCOUNTING STANDARDS AND GENERALLY THE GOVERNMENT AUDITING STANDARDS, BECAUSE THE CITY ALSO UNDERGOES A UNIFORM GUIDANCE SINGLE AUDIT DUE TO HAVING EXPENDITURES MORE THAN $1 MILLION. WE'RE CURRENTLY PERFORMING THAT. THERE ARE TWO SEPARATE FINANCIAL STATEMENTS. SO THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, WHAT WE CALL THE AQUIFER. SO THAT'S THE GFOA SUBMISSION. AND THE SINGLE AUDIT REPORT WILL BE ISSUED LATER THIS YEAR. WE'RE WORKING ON THAT. THAT'S WHERE WE TEST. WE PICK A COUPLE MAJOR PROGRAMS. WE TEST INTERNAL CONTROL AND COMPLIANCE OVER HOW YOU'RE SPENDING YOUR FEDERAL FUNDS. SO THE ANNUAL COMPREHENSIVE FINANCIAL REPORT. THIS IS A REPORT THAT'S ESSENTIALLY ABOVE AND BEYOND WHAT ANY GOVERNMENT HAS TO DO. SO IT TAKES ALL WHAT YOU'RE SUPPOSED TO DO AND REPORT WITHIN YOUR FINANCIAL STATEMENTS. AND THEN IT ALSO UNDERGOES SCRUTINY BY GFOA. SO THE GFOA IS THE GENERAL FINANCE, THE GOVERNMENT FINANCE OFFICERS ASSOCIATION. SO THEY REQUIRE SOME DIFFERENT ELEMENTS. THERE'S AN INTRODUCTION SECTION, A LETTER FROM MANAGEMENT TALKING MORE ABOUT THE CITY'S, THE SERVICES THAT THE CITY PROVIDES TO CITIZENS. AND THERE'S A LOT OF STATISTICAL ANALYSIS IN THE BACK SECTION OF THE REPORT THAT'S HELPFUL FOR CITIZENS AND THIRD PARTY USERS TO LOOK AT THAT. LIKE I SAID, IT'S ABOVE AND BEYOND STANDARD REPORTING. SO WHAT HAPPENS IS GFOA, ESSENTIALLY THEY REVIEW THAT AGAINST A CHECKLIST. THEY WANT TO MAKE SURE IT HAS ALL THE COMPONENTS INCLUDED IN THERE. AND THEY WILL THEN SUBMIT A CERTIFICATE OF FINANCIAL EXCELLENCE. AND WE EXPECT THAT THE CITY WILL RECEIVE THAT AGAIN FOR THE 2025 SUBMISSION IT WAS RECEIVED FOR PREVIOUS YEARS. SO THE PRIOR YEAR, THE 2024 CERTIFICATION IS IN THERE. SO AS I MENTIONED, THERE ARE TWO COMPONENT UNITS THAT ARE ALSO ROLL UP INTO THE CITY'S REPORT. SO THESE THERE ARE ALLENTOWN REDEVELOPMENT AUTHORITY, WHICH WE DO AUDIT, BUT THE PARKING AUTHORITY IS ALSO INCLUDED IN THERE. WE DO NOT AUDIT THEM. WE JUST REFERENCED THE INTERNAL THE EXTERNAL AUDIT OPINION FOR THOSE. THOSE BOTH RECEIVED UNMODIFIED OPINIONS. BUT WHEN YOU'RE COMPARING THAT THAT FINANCIAL STATEMENT TO PRIOR YEAR, THERE'S NOT A SIGNIFICANT AMOUNT OF CHANGES. THERE'S NO NEW FOOTNOTE DISCLOSURES. WE HAVE TO BRING IT TO YOUR ATTENTION. YOU DIDN'T HAVE TO WORRY ABOUT ADOPTING NEW ACCOUNTING STANDARDS. THERE WAS TECHNICALLY ONE APPLICABLE, BUT IT DIDN'T APPLY TO THE CITY. THE NEXT SLIDE TALKS ABOUT ACCOUNTING ESTIMATES. SO THE MOST SIGNIFICANT ACCOUNTING ESTIMATES THAT AFFECT DOLLAR AMOUNTS RECORDED IN THE FINANCIAL STATEMENTS. AND THE FOOTNOTE DISCLOSURES ARE THE ACTUAL ASSUMPTIONS THAT DRIVE THE NET PENSION LIABILITY AND THE NET OTHER POST-EMPLOYMENT BENEFIT PLAN LIABILITY SIMILAR TO PREVIOUS YEARS, AS WELL AS FAIR VALUE ADJUSTMENTS. WE DO AUDIT THOSE AND DO NOT HAVE ANY ISSUES REGARDING THOSE ASSUMPTIONS. THE MOST SENSITIVE DISCLOSURE, INCLUDING THE FINANCIAL STATEMENTS WE'VE MENTIONED THIS SEVERAL YEARS, IS FOOTNOTE TWO REGARDING THE UTILITY SYSTEM. CONCESSION LEASE DISCLOSURE DOESN'T CHANGE. IT'S UPDATED EVERY YEAR FOR THE DOLLAR AMOUNTS. AND WE DID NOT HAVE ANY DIFFICULTIES IN WORKING WITH MANAGEMENT AND THE DIFFERENT BUREAUS. WE RECEIVED ALL THE INFORMATION WE NEEDED TO COMPLETE OUR FINANCIAL STATEMENT AUDIT. AND AS PART OF OUR AUDIT, WE ON THE NEXT SLIDE FOR CORRECTED AND UNCORRECTED MATERIAL MISSTATEMENTS, IF THERE ARE ANY IMMATERIAL ADJUSTMENTS, WE JUST REVIEW THOSE WITH MANAGEMENT. IF THEY'RE OKAY NOT POSTING THEM, THAT'S PERFECTLY FINE BECAUSE IN THE END IT DOESN'T AFFECT THE ENDING DOLLAR AMOUNTS. BUT WE DID COME ACROSS ONE ADJUSTMENT THAT WAS OVER OUR MATERIALITY THRESHOLD THAT WE RECOMMENDED. IT PROPOSED TO MANAGEMENT THAT DID REVIEW THE INFORMATION, AND IT IS INCLUDED IN THE FINANCIAL STATEMENT. SO THAT WILL BE ON A LATER SLIDE. WE DID NOT COME ACROSS ANY DISAGREEMENTS WITH MANAGEMENT. 
          WE DID HAVE A MANAGEMENT REPRESENTATION LETTER PROVIDED TO US IN ORDER TO ISSUE THE FINAL REPORT. WE'RE NOT AWARE OF ANY CONSULTATIONS WITH OTHER INDEPENDENT CPAS TRYING TO OBTAIN A SECOND LEVEL OF OPINION AND ANY ISSUES DISCUSSED PRIOR TO RETENTION AS YOUR AUDITORS ON A NORMAL COURSE OF A PROFESSIONAL RELATIONSHIP. AND ON THE NEXT SLIDE ARE THE SUMMARY OF OUR AUDIT RESULTS. SO THE OPINION WE GAVE ON THE CITY'S FINANCIAL 
          [00:05:05]
STATEMENTS IS AN UNMODIFIED OPINION. SO THAT'S THE BEST OPINION THAT THE CITY CAN RECEIVE. AND AN OPINION. WE STATED THAT THE FINANCIAL STATEMENTS WERE MATERIALLY CORRECT IN ACCORDANCE WITH THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. AND WE ALSO MENTIONED THE PARKING AUTHORITY IS NOT AUDITED BY US, BUT WE REFERENCE THE OTHER INDEPENDENT CPA FIRM REGARDING THAT. THERE ARE REQUIRED SUPPLEMENTARY INFORMATION, WHAT WE CALL OUR S I INCLUDE IN THE REPORT. THERE IS A MANAGEMENT'S DISCUSSION AND ANALYSIS THAT'S INCLUDED REPORT. IT'S A GREAT NARRATIVE TO TO GAIN UNDERSTANDING OF THE OVERVIEW OF THE FINANCIAL STATEMENTS THEMSELVES, AS WELL AS SIGNIFICANT CHANGES FROM PRIOR YEAR TO CURRENT YEAR. AND THERE'S HISTORICAL PENSION AND OTHER POSTRETIREMENT BENEFIT PLAN INFORMATION, TEN YEARS WORTH OF INFORMATION. THAT'S WHAT THE GOVERNMENT ACCOUNTING STANDARDS BOARD SAYS YOU HAVE TO INCLUDE. THAT'S INCLUDED. THERE'S ALSO BUDGETARY COMPARISON INFORMATION AS WELL. 
          SO BUDGET TO ACTUAL SCHEDULES FOR YOUR MOST SIGNIFICANT SPECIAL REVENUE FUNDS AS WELL AS YOUR GENERAL FUND. THOSE THAT INFORMATION WOULD REVIEW IT, BUT WE DON'T ISSUE AN OPINION ON IT. BUT WE DID NOT COME ACROSS ANYTHING THAT WERE SIGNIFICANT VARIANCES THAT WE HAVE TO REPORT TO YOU AND SUPPLEMENTARY INFORMATION, BECAUSE THIS IS AN ACT FOR. 
          THERE'S A LOT MORE SUPPLEMENTARY INFORMATION THAT'S INCLUDED IN HERE, BECAUSE A LOT MORE A BREAKDOWN, A COMBINING SCHEDULE SHOWING YOU ALL THE DIFFERENT FUNDS THAT MIGHT PULL UP TO THE FRONT. THERE'S ALSO A GOOD BUDGET TO ACTUAL SCHEDULES INCLUDED IN THERE AND ALREADY MENTIONED THE INTRODUCTION AND STATISTICAL SECTION THAT'S INCLUDED IN THERE TOO. SO THE STATISTICAL AND INTRO, WE DON'T AUDIT IT. WE JUST STATE THAT IN AN OPINION, THE SUPPLEMENTARY INFORMATION WE DO AUDIT AND GIVEN IN RELATION TO THOSE MATERIALLY CORRECT IN ACCORDANCE WITH THE FINANCIAL STATEMENTS THEMSELVES. SO I MENTIONED THE GOVERNMENT AUDITING STANDARDS WE PERFORM. THAT'S A SEPARATE STANDARDS. WE LOOK FOR COMPLIANCE OVER FINANCIAL REPORTING AND INTERNAL CONTROL THAT WE PERFORM THAT AUDIT IN ACCORDANCE WITH STANDARDS, BECAUSE WE PERFORMED THAT SEPARATE SINGLE AUDIT FOR THE UNIFORM GUIDANCE, AND BECAUSE THAT ONE ENTRY THAT WE CAME ACROSS WAS SIGNIFICANT MATERIAL ENOUGH, WE HAD TO REPORT THAT AS A FINDING. BUT LIKE I SAID, IT WAS REVIEWED AND APPROVED BY MANAGEMENT, AND IT'S REFLECTED IN THE FINANCIAL STATEMENTS THEMSELVES. AND WE DID COME ACROSS WHAT WE DEEM JUST OTHER MATTERS. SO THESE ARE NOT FINDINGS. THESE ARE JUST BEST PRACTICE RECOMMENDATIONS THAT WE WE GIVE. THE FIRST COUPLE WERE CONTINUATIONS FROM PREVIOUS YEAR. THE ONE IS ADDRESSING FINDINGS OF RECOMMENDATIONS THAT WERE HIGHLIGHTED IN THE AUDITOR GENERAL REPORT. THERE'S SOME DIFFERENCES BETWEEN THE PENSION PLAN AND THE THE COLLECTIVE BARGAINING AGREEMENTS THAT WAS CALLED OUT BY THE AUDITOR GENERAL. MANAGEMENT IS WELL AWARE OF THAT. AND AS YOU KNOW, NEGOTIATIONS CAN TAKE PLACE. THOSE WILL FINALLY BE ADJUSTED. THE WE RECOMMEND THE CITY DOES HAVE A DISASTER CONTINGENCY PLAN IT, BUT WE JUST RECOMMEND ANNUAL TESTING TO MAKE SURE IT FUNCTIONS IN ACCORDANCE WITH THE PLAN. THERE ARE SEPARATE ACCOUNTS RECEIVABLE RECONCILIATIONS. I BELIEVE IT'S CALLED THE SWEEP SECTION. WE JUST RECOMMEND THAT THE FINANCE DEPARTMENT WORK WITH THAT SEPARATE BUREAU TO SEE IF ANY OF THOSE ARE DEEMED COLLECTIBLE, AND RECONCILE THOSE TWO. RECORDING A CAPITAL ASSETS. WHEN WE WERE AUDITING THE CAPITAL ASSETS, WE CAME ACROSS SOME SMALL ITEMS THAT WERE NOT INCLUDED INITIALLY ON. THERE WASN'T MATERIAL ENOUGH TO REPORT AS A FINDING, SO WE JUST RECOMMENDED THAT THAT RECONCILIATION TAKE PLACE. INTERFUND ACTIVITY. WE WE RECOMMENDED THE RECONCILIATION TAKES PLACE ON A PERIODIC BASIS, AND THEN THERE'S GOING TO BE A NEW STANDARD FOR NEXT YEAR'S FINANCIAL STATEMENTS. YOU'LL NOTICE A CHANGE. IT'S CALLED GATSBY 103. SO IT DOES CHANGE THE STRUCTURE OF YOUR MANAGEMENT DISCUSSION. ANALYSIS WILL WORK WITH THE CITY AND PROVIDE A TEMPLATE TO WORK THROUGH WHAT COMPONENTS NEED TO BE RECORDED INCLUDED. THERE'S GOING TO BE A REQUIRED COLUMN IF YOU HAVE. IF COUNCIL AMENDS A BUDGET, YOU HAVE TO SHOW A VARIANCE COLUMN BETWEEN ORIGINAL BUDGET AND FINAL BUDGET AND A COUPLE OTHER LITTLE NUANCES. IN THE END, YOU'RE PROBABLY NOT GOING TO SEE A HUGE CHANGE, BUT I WOULD THINK THE MANAGEMENT DISCUSSION ANALYSIS IS PROBABLY THE MOST IMPACTFUL. SO THAT'S WHY WE JUST HAD A RECOMMENDATION. START LOOKING AT THAT AND SEEING HOW THAT WILL CHANGE, BECAUSE IT WILL TAKE SOME TIME. NOW WHEN LOOKING AT THE DOLLAR AMOUNTS, JUST THIS IS A FINANCIAL HIGHLIGHT. JUST COMPARING CURRENT YEAR TO THE PAST TWO YEARS. NOW, THE TOTAL GOVERNMENT WIDE GOVERNMENT FINANCIAL STATEMENTS ARE RATHER COMPLEX. SO THE GOVERNMENT WIDE IS TAKING ALL OF THE CITY'S FUNDS, EXCLUDING PENSION, BECAUSE ANYTHING FIDUCIARY THAT'S NOT YOURS, THAT'S FOR YOUR FUTURE RETIREES. SO IT'S TAKING ALL OF YOUR FUNDS AND CONVERTING IT ON A FULL ACCRUAL, WHICH IS A LONG TERM FOCUS. SO THIS IS WHERE ALL YOUR LONG TERM LIABILITIES ARE RECORDED AND YOUR LONG TERM ASSETS. SO ANYTHING THAT'S PURCHASED OF YOUR CAPITAL PROJECT FUND THAT WILL BE REFLECTED AS A CAPITAL ASSET HERE. SO THAT'S HOW WE'RE COMPARING APPLES TO APPLES WITH THOSE DOLLAR AMOUNTS. SO JUST SOME HIGHLIGHT CHANGES THE THE CHANGE IN NET POSITION. SO ENTITY WIDE FULL ACCRUAL. YOU HAD A $26.6 MILLION INCREASE. 
          [00:10:05]
WHEN YOU'RE LOOKING AT THE FULL ACCRUAL SIDE AND TAXES. AND JUST SOME INFORMATION WAS INCLUDED IN THE MANAGEMENT DISCUSSION ANALYSIS. SO I JUST PULLED OUT SOME DETAILS SHOWING SOME COMPARATIVE INFORMATION. TAX REVENUES INCREASED BY ABOUT 3.5%. OPERATING GRANTS AND CONTRIBUTIONS DO FLUCTUATE YEAR TO YEAR. A LOT OF THAT HAS BEEN DEPENDENT UPON ARPA SPENDING OVER THE PAST YEAR. SO IF YOU'RE LOOKING MORE INTO THE DETAILS OF PRIOR TO CURRENT YEAR WITH MORE BREAKOUT, YOU'LL SEE FLUCTUATION. AND THE CITY DOES A GREAT JOB GETTING GRANT FUNDING FOR DIFFERENT TYPES OF PROJECTS. SO NO CONCERNS ON ON THAT FRONT. AND CHARGES FOR SERVICES DID INCREASE BY ABOUT 15.5%, MAINLY ON THE BUSINESS TYPE ACTIVITY SECTION. AND THIS SLIDE WILL SHOW THIS IS STILL FULL ACCRUAL. SO COMPARING BY SEGMENT. SO THIS WILL SHOW YOUR NET COST OF ACTIVITIES. AND SO YOU CAN SEE GENERAL GOVERNMENT PUBLIC SAFETY. AND THEN ALSO INCLUDES YOUR GOLF COURSE FUND AS WELL AS YOUR SOLID WASTE FUND. SO THIS WILL SHOW THE TOTAL COST OF SERVICES AND THEN THE NET COST OF SERVICES, WHICH IS ESSENTIALLY COMPARING THE CHARGES FOR SERVICES. AND IF YOU HAVE GRANTS OR CONTRIBUTIONS THAT ARE DIRECTLY ON THAT LINE, ITEM OFFSETS THE COST. AND THEN YOU HAVE THE NET COST OF SERVICES. YOU SEE THAT NET COST OF SERVICES IS SIGNIFICANT NEGATIVE AMOUNT THAT IS FOR ANY CITY. THAT'S FOR ANY GOVERNMENT, BECAUSE YOUR PROPERTY TAXES AND YOUR MAIN REVENUE THAT'S SUBSIDIZED THESE THESE COSTS. SO JUST AND OF COURSE, YOU CAN SEE THE PUBLIC SAFETY IS ABOUT 43% OF YOUR TOTAL COST FOR SERVICES. WHEN YOU'RE LOOKING AT IT ON THIS ASPECT. AND THE PUBLIC WORKS ABOUT 16% GENERAL GOVERNMENT SLIGHTLY, IT DID HAVE A SLIGHT DECLINE DURING THE YEAR AS WELL. I ALREADY MENTIONED THE SOLID WASTE FUND. WE DID SEE AN INCREASE DURING THE YEAR, AND THE INCREASE WAS PRIMARILY ASSOCIATED WITH HIGHER COSTS THAT WERE RELATED TO THE CITY'S WASTE MANAGEMENT OPERATIONS. AND THE ONE FUND THAT'S NOT INCLUDED ON HERE IS THE RISK FUND, SO THAT THE THE TOTAL ENDING NET POSITION DID HAVE A SLIGHT DECREASE FROM THE PREVIOUS YEAR. THERE WERE HIGHER PREMIUMS THAT TOOK PLACE ON FOR HEALTH AND HEALTH COSTS DURING THE YEAR. SO THAT'S WHAT DROVE THAT THAT DECREASE DURING THE YEAR. AND THEN THE NEXT SLIDE IS THE FOCUS ON YOUR GENERAL FUND. SO THIS BASIS IS VERY SIMILAR TO HOW THE CITY BUDGETS. SISTER CHIEF MAIN OPERATING FUND OF THE CITY. SO YOU CAN SEE CHANGE IN FUND BALANCE. THE FUND BALANCE DID DECREASE. SO YOU TECHNICALLY HAD A NET LOSS OF YOUR FUND BALANCE BY 6.7. BUT I BELIEVE COUNCIL APPROVED A BUDGET. I THINK IT WAS 6.3 OR 6.4. SO COUNCIL WAS EXPECTING A LOSS DURING THE YEAR, A USE OF THE FUND BALANCE BECAUSE IT WAS GROWING OVER THE PAST SEVERAL YEARS. SO YOU CAN SEE THERE'S SOME FLUCTUATIONS ON THE REVENUE SIDE AND EXPENDITURE SIDE. SO DECREASE IN THE REVENUE MAINLY DROVE THAT TRANSFERS IN AND OUT HAD A LARGE FLUCTUATION. AND THAT'S JUST MAINLY WITH THE ACTIVITY BETWEEN ARPA AS WELL AS CAPITAL PROJECTS. AND THEN THAT WOULD ALSO CHANGE THE THE INCREASE THAT YOU SEE ON EXPENDITURE SIDE TO WHAT MAINLY DROVE THAT INCREASE WAS TRANSFERS TO THE CAPITAL FUND TO FUND FUTURE CAPITAL PROJECTS AND CURRENT PROJECTS, CAPITAL PROJECTS. 
          YOU'RE ENDING GENERAL FUND FUND BALANCE, THE ENDING FUND BALANCE OF 71 MILLION. A MAJORITY OF THAT FUND BALANCE 90. YES, 93% OF YOUR GENERAL FUND FUND BALANCE IS UNASSIGNED, WHICH MEANS IT'S AVAILABLE FOR FUTURE SPENDING. AND THERE IS ALSO A SMALL SECTION THAT'S ASSIGNED INTERNALLY BY MANAGEMENT AS WELL, A VERY SMALL SECTION THAT IS RESTRICTED. SO OUT OF THAT ASSIGNED ASSIGNED UNASSIGNED FUND BALANCE, THAT DOLLAR AMOUNT, THE END OF THE YEAR WOULD FUND ABOUT FIVE AND A HALF MONTHS OF OPERATING EXPENDITURES AT YOUR GENERAL FUND. GFOA MINIMUM REQUIREMENT IS TWO MONTHS. SO RATHER HEALTHY FUND BALANCE FOR THE GENERAL FUND AND THE THE NEXT SLIDE, THIS IS ACTUALLY AN EXCERPT RIGHT FROM THE THE ACFA ITSELF. THIS IS ONE THIS IS PART OF THAT STATISTICAL SECTION TOWARDS THE BACK. SO THIS SHOWS THE CITY'S ABILITY TO ESSENTIALLY TAKE ON NEW DEBT. 
          SO IN ACCORDANCE WITH COMMONWEALTH, YOU PERFORM THIS THIS CALCULATION FOR WHAT IS YOUR LEGAL DEBT MARGIN AND COMPARING THAT TO THE DEBT THAT THE CITY IS HOLDING RIGHT NOW. 
          SO YOU CAN SEE ALMOST 18% OF YOUR OF WHAT YOU'RE ABLE TO TAKE ON IN DEBT. AND THAT IS ALL THAT I HAD WITHIN THE PRESENTATION. DID YOU HAVE ANY QUESTIONS REGARDING THE AUDIT OR ANYTHING? I DID NOT COVER? I GUESS I JUST WANTED ONE THING I KNOW WE HAD A CONVERSATION. 
          FIRST OF ALL, THANK YOU SO MUCH FOR THE PRESENTATION. AND I THINK IT'S TELLING OF THE LEVEL 
          [00:15:02]
OF, OF DETAIL AND WORK THAT GOES INTO THESE BUDGETS. AND I THINK, YOU KNOW, JUST GOING BACK TO THAT SLIDE TEN, WHERE WE TALK ABOUT THAT CHANGE IN FUND BALANCE FOR ANYONE WHO MAY LISTEN BACK TO THIS, ANYONE WHO'S PRESENT, I THINK IT'S KEY TO JUST ILLUSTRATE THE FACT THAT THAT'S NOT A DECREASE IN OUR, YOU KNOW, RETAINED FUNDING BECAUSE OF A MISMATCH IN PROJECTIONS VERSUS EXPENDITURES. IT'S REALLY A FUNDING THAT WE HAD THAT ESSENTIALLY HAD TO BE SPENT. AND IT WAS. AND NOW THAT BALANCE IS NO LONGER PART OF OUR FUND. SO FOR ALL INTENTS AND PURPOSES, OUR BALANCE, OUR BUDGETS ARE BALANCED AND WE CONTINUE TO DO A GREAT JOB THERE. AND I JUST WANT TO, AGAIN, THANK OUR FINANCIAL TEAM SO MUCH FOR ALL THE WORK THAT WE PUT IN AND THE HARD WORK THAT YOU GUYS DO. AND AND IT'S TELLING AS WE, YOU KNOW, GO THROUGH THESE NUMBERS AND JUST SEE THE WAY THAT, YOU KNOW, WE'RE MANAGING THESE LARGE FUNDS AND, AND WORKING WITH ALL THE DIFFERENT CHALLENGES THAT MAY COME OUR WAY. AND SO I DO APPRECIATE THAT. AND THEN I THINK YOU MENTIONED LIKE ONE ITEM, I THINK IT'S ALSO WORTH HIGHLIGHTING THE LIKE, I THINK IN OUR CONVERSATION, WE TALKED ABOUT, YOU KNOW, POTENTIALLY ONE OF THE, THE, YOU KNOW, THE, THE ITEMS THAT HAD TO BE NOTED COULD ALSO STEM FROM THE TRANSITION TO MUNIS AND JUST THE COMPLICATIONS WITH THAT, WHICH IS YET ANOTHER CHALLENGE THAT I'M SURE OUR FINANCIAL TEAM HAD TO NAVIGATE THIS YEAR. SO AGAIN, KUDOS TO ALL YOU GUYS AND ALL THE WORK THAT YOU GUYS DO BECAUSE I KNOW IT'S CHALLENGING ENOUGH. PLUS ADDING IN A NEW SYSTEM, IT'S, IT'S, IT'S A LOT. SO THANK YOU. I DID WANT TO, YOU KNOW, OPEN IT UP TO ANY MEMBERS OF COUNCIL, SEE IF, YOU KNOW, YOU GUYS HAD ANY QUESTIONS, COMMENTS BASED OFF OF THE PRESENTATION WE JUST RECEIVED. YEAH. ANY QUESTIONS ON THIS? OKAY, I'LL JUST ECHO COUNCIL PERSON WITH THANKS TO THE TEAM FOR ALL THE HARD WORK. I THINK ONE THING I WOULD LIKE TO JUST MAKE SURE WE ALL UNDERSTAND, ESPECIALLY THE PUBLIC, IS THE LAST SLIDE THAT THAT JUST TO MAKE SURE, YOU KNOW, WE HAVE SOME UPCOMING CAPITAL PROJECTS THAT HAVE BEEN DISCUSSED. THEY'RE STILL IN FLUX WHEN IT COMES TO THE AMOUNTS. BUT TALK TO US ABOUT, YOU KNOW, HOW OUR DEBT HAS BEEN COMING ALONG THE LAST FEW YEARS AND HOW DO WE LOOK GOING FORWARD WHEN IT COMES TO SOME OF THESE SUBSTANTIAL PROJECTS. SO IN ACCORDANCE WITH THIS CALCULATION, THE CITY CAN FULLY TAKE ADVANTAGE OF THE CAPACITY OF DEBT THAT THEY COULD TAKE ON. 
          THE CITY HAS BEEN DOING A GREAT JOB OF PAYING DOWN THE DEBT, OF COURSE, AND IN ACCORDANCE WITH THE MATURITY SCHEDULE. SO NO ISSUES REGARDING THOSE PAYMENTS. SO WHAT THIS CALCULATION DOES, AND THIS IS OUTLINED IN ACCORDANCE WITH THE COMMONWEALTH COMMONWEALTH'S STATUTE. SO WHAT THE DEBT LIMIT. IT COMPARES WHAT THE DEBT LIMIT IS BASED UPON YOUR REVENUE FOR THE PAST COUPLE YEARS. AND THEN IT COMPARES THAT AGAINST WHAT YOUR YOUR DEBT CURRENTLY IS. SO WITH THIS CALCULATION IS, IS YOU COULD ESSENTIALLY TAKE ON 80% MORE DEBT IN ACCORDANCE WITH THE COMMONWEALTH'S LIMITS IS WHAT THIS CALCULATION IS TALKING ABOUT. OKAY. THANK YOU. 
          I JUST WANTED TO MAKE SURE EVERYONE WAS CLEAR OF HOW, HOW THAT LOOKS BECAUSE OF THESE PROJECTS THAT WE'RE KIND OF CONTEMPLATING RIGHT NOW AND TRYING TO FIGURE OUT WHAT DIRECTION WE'RE GOING. SO, AND I THINK IT'S ALSO AND IT'S ALSO HIGHLIGHTED IN YOUR MANAGEMENT DISCUSSION ANALYSIS IS YOUR DEBT RATING. YOUR MOODY'S DEBT RATING KEEPS INCREASING TOO. SO YOUR FINANCIAL OUTLOOK HAS SIGNIFICANTLY GROWN OVER THE PAST SEVERAL YEARS. AND YOUR BOND RATING AGENCIES ARE SEEING THAT. AND THAT'S GOING TO BE HELPFUL IN GETTING BETTER INTEREST RATES AS WELL. WHEN YOU DO DECIDE TO ENTER INTO DEBT AGREEMENTS. OKAY. AND I ASK YOU THIS EVERY YEAR, ARE THERE ANY ISSUES THAT YOU'VE SEEN THAT YOU SEE, THAT YOU KNOW, YOU WANT TO CALL OUT? JUST, I KNOW ONE YEAR IT WAS OUR GRANT, OUR GRANT PROCESS WAS, WAS COMING AROUND AND I THINK OUR CDBG GRANTS AND STUFF. BUT THAT HAS BEEN CLEANED UP. I THINK AT THIS POINT. YES, THAT HAS BEEN CLEANED UP SIGNIFICANTLY. OKAY. GREAT. ANY OTHER ISSUES THAT WE SHOULD KNOW ABOUT? NO, NO SIGNIFICANT CONCERNS. I MEAN, YOU CAN SEE THOSE BEST PRACTICE RECOMMENDATIONS. PRETTY MINOR, NOTHING BIG THERE. AND THE ONLY THAT MATERIAL WEAKNESS THAT WE HAD TO GIVE THAT FINDING WAS ONLY BECAUSE OF A PAYABLE THAT WAS MISSED. SO AND IT'S JUST THE AUDITOR INSTINCT TO FIND IT I GUESS. AND IT WAS A HUGE I KNOW IT WAS A BIG STRAIN ON THE BUREAU TO GET EVERYTHING FOR THE AUDIT DURING AN ACCOUNTING SYSTEM CONVERSION, BECAUSE WE WERE ESSENTIALLY WORKING ON TWO DIFFERENT ACCOUNTING SYSTEMS. SO SOME OF THE INFORMATION WE HAD TO ASK FOR UNDER TWO DIFFERENT ACCOUNTING SYSTEMS, SO THAT I KNOW THAT TOOK A LOT OF STRAIN AND STRESS ON THE TEAM. AND THERE ARE ALWAYS EXTREMELY COMMUNICATIVE. IF DEADLINES COULDN'T BE MET, WE WERE, YOU KNOW, ACCOMMODATING WITH OUR SCHEDULE. SO NO CONCERNS THERE. OKAY. THANK YOU. I GUESS JUST ONE THING. YOU KNOW, SOMETHING YOU MENTIONED, YOU KNOW, REMINDED ME AS FAR AS WE HAD A CONVERSATION BEFORE WE 
          [00:20:04]
STARTED THE AUDIT. AND I AND WE, YOU KNOW, I AT THAT POINT IN TIME, I DID ASK, YOU KNOW, IF THERE'S ANYTHING WE COULD DO AS FAR AS LIKE PROCUREMENT. AND I THINK I BELIEVE JUST IN OUR CONVERSATION, WE TALKED ABOUT, YOU KNOW, SOME OF THOSE VALUES PERHAPS ARE A LITTLE LOW. AND, AND, YOU KNOW, COULD, YOU KNOW, WITH THE TIMES AND THE RISING COSTS COULD INCREASE. AND I KNOW THAT'S SOMETHING I'M INTERESTED IN PURSUING FURTHER TO SEE WHAT WE CAN DO TO HELP OUR CITY IMPROVE OUR PROCUREMENT PROCESSES AND MAKE IT EASIER FOR OUR FINANCE DEPARTMENT TO NOT HAVE TO, YOU KNOW, DO SO MUCH TO MAYBE PROCURE LESS NOWADAYS. SO THANK YOU. SO WE ARE INTERNALLY REVIEWING THAT AS WELL. AND WE ARE ALSO EXPLORING OUR BIDS, THRESHOLDS AND THINGS WITH THE, YOU KNOW, PROCURING SERVICES AND GOODS THAT THE COSTS HAVE INCREASED. AND WE ARE EXPLORING THAT TO HELP DEPARTMENTS TO MAKE THE PROCESS EASIER FOR THEM. I DID WANT TO RECOGNIZE HIS TEAM. THAT WAS CRUCIAL IN HELPING JEN AND IN PREPARING THIS FINANCIAL STATEMENT, PREPARING FINANCIAL STATEMENTS AND ITSELF IS A BIG THING. AND FOR CITY OF OUR SIZE AND, YOU KNOW, 16 ACTIVE FUNDS IS A LOT OF WORK. AND DOING THAT IN ADDITION TO GOING LIVE WITH MUNIS AND WORKING, YOU KNOW, IMPLEMENTATION PROCESS AND WORKING THROUGH TWO DIFFERENT ERP SYSTEM IS ANOTHER CHALLENGE. SO I HAVE THE TEAM THAT WORKS ON THAT CONTINUOUSLY. AND THROUGHOUT THE YEAR, WE MAKE SURE THAT WE ARE DOING THE RIGHT THING. WE ARE FOLLOWING ALL, ALL OF THE GATSBY'S AND GFOA BEST PRACTICES TO ENSURE THAT WE ARE DOING THE RIGHT THING BY THE TAXPAYER AND AND FOR THE CITY OF ALLENTOWN. SO I WOULD I WOULD LIKE TO RECOGNIZE ERIKA STROLLER, WHO'S A TREASURY AND ACCOUNTING MANAGER LEAD FOR THAT BUREAU, SENIOR ACCOUNTANT MIKE SINCLAIR, SENIOR ACCOUNTANT, ZOOM ALOU. 
          AND THEN SHERRY YOUNG IS THE ACCOUNTANT. AND HECTOR RODRIGUEZ, ALL OF THESE FOLKS HELPED US PREPARE THIS. SO I'M VERY GRATEFUL TO THEM AND TO YOU ALSO. THANK YOU. GREAT WORK WITH EVERYONE. AND I. THEY CAN PROBABLY ATTEST WE PESTERED PROBABLY EVERYONE SITTING BEHIND ME. SO EVERYBODY WAS VERY HELPFUL IN GETTING US THE INFORMATION WE NEEDED. WELL, THANK YOU SO MUCH. AND AGAIN, THE CITY OF ALLENTOWN IS GREATER BECAUSE OF YOU GUYS AND THE WORK THAT YOU GUYS DO. SO THANK YOU ALL. ALL RIGHT. SO WITH THAT, WE WILL JUMP INTO THE NEXT AGENDA ITEM. SO ON THE AGENDA FOR TODAY, WE'RE ALSO DOING A REVIEW OF BILL 65. MR. CLARK, YOU MIND? NO. 65 AMENDS PART TWO GENERAL LEGISLATION, CHAPTER 196 BUSINESS LICENSE, SECTION THREE FEE. BY UPDATING THE LANGUAGE AND IDENTIFYING THE NEW FEE THAT WILL BE APPLIED MOVING FORWARD, STARTING WITH 2027 BILLING, RENEWAL AND REMOVING LANGUAGE IN SECTION SIX. VIOLATING AND PENALTIES. THE NEW FEE IS $50. THANK YOU SO MUCH, MIKE. SO THIS BILL ACTUALLY IS BEING INTRODUCED TO ACKNOWLEDGE THE INCREASED COST AND OTHER THE BUSINESSES BUSINESS ACTIVITY IN CITY OF ALLENTOWN HAS INCREASED AND THE ADMINISTRATIVE WORK ON OUR STAFF HAS INCREASED. BUT I DO HAVE REVENUE AND AUDIT MANAGER STEVE, WHO'S GOING TO ELABORATE MORE ON THAT. I WILL STEP ASIDE. STEVE, TAKE IT AWAY. THANK YOU. SO WE HAVE. SOME FEES THAT HAVE SORT OF BEEN GOING UP IN THE DEPARTMENT, AND THE CITY HAS NOT INCREASED THE LICENSE FEE SINCE 1992. TO PUT THAT IN SOME PERSPECTIVE, I WAS A SOPHOMORE AT FREEDOM HIGH SCHOOL DURING THAT TIME PERIOD. THAT BEING SAID, THE PROPOSED FEE INCREASE WOULD NOW TOTAL OF 15 WOULD BE $15. WOULD TOTAL $50. WHAT THE BILL WOULD DO IS IT WOULD, YOU KNOW, HELP US OFFSET SOME OF THOSE ADMINISTRATIVE COSTS THAT GO INTO IT? WE'VE HAD TO UPGRADE THE FINANCIAL SYSTEM. WE'RE USING GOV VERY, VERY HARD AND PUSHING THAT SYSTEM TO ITS LIMITS TO MAKE SURE WE'RE CAPTURING ALL THE REVENUE WE CAN IN THE CITY. ON TOP OF IT, COSTS HAVE GONE UP TO, YOU KNOW, GO AFTER AND SEND OUT BILLS FOR THE BUSINESS LICENSES TO GET THE ASSESSMENTS DONE SO THAT WE COLLECT ON THE, YOU KNOW, FEES FOR THE TAXES. ALL THOSE COSTS SEEM TO GO UP, GO UP. POSTAGE STAMPS HAVE GONE UP. I BELIEVE IT IS. WELL, PERSONNEL COSTS 
          [00:25:04]
HAVE GONE UP 136%, BUT THE COST OF A POSTAGE STAMP HAS GONE UP AND HAS RISEN ABOVE THE RATE OF INFLATION. AND WE'VE GONE FROM, YOU KNOW, 5 TO 6000 BUSINESSES IN THE CITY TO OVER 14000 RENEWALS THAT WILL GO OUT AT THE END OF THIS YEAR. SO THAT IS A HUGE INCREASE IN THE MAIL WE SEND OUT TO PEOPLE TO GET THEM TO RENEW THEIR LICENSE EVERY YEAR. SO THOSE THINGS COMBINED WITH WHAT WE LOOKED AT OTHER CITIES DO. REDDING'S FEE, WHICH IS FAIRLY COMPARABLE TO THE CITY OF ALLENTOWN, THEY HAVE A $55 FEE, SO WE'RE STILL $5 BELOW THEM. AND TO GET A BUSINESS LICENSE IN THE CITY, DEPENDING ON THE SITUATION, TO WALK IN THE DOOR IS $125. SO ALLENTOWN IS STILL A GOOD DEAL IN THAT REGARD. AND I THINK $50 IS A REASONABLE INCREASE, WELL BELOW THE RATE OF INFLATION OVER THE YEARS. SO. THANK YOU SO MUCH. I APPRECIATE THAT DETAIL. I GUESS I'M ALSO CURIOUS WITH REGARD TO THE SYSTEMS THAT WE'VE PUT IN PLACE, AS THAT ALLOWED US TO FACILITATE THE COLLECTION OF THOSE FEES. AND YEAH, SO I AM HERE A MONTH SO FAR AS THE THE BUREAU MANAGER. AND ONE OF THE THINGS I NOTICED WE WERE FOR BUSINESS TAXES, WE WERE DRIVING AROUND THE CITY. IF SOMETHING WOULD COME IN OR SOMEONE WOULD SEE SOMETHING ABOUT A BUSINESS GOING INTO OPERATION, BECAUSE OBVIOUSLY WE WANT TO MAKE SURE THE BUSINESS IS MAINTAINING SAFETY. SO IF IT'S A FOOD OR CHILD CARE BUSINESS THAT HEALTH IS INVOLVED, WE WANT TO MAKE SURE THAT IF THERE'S A TAX SITUATION OR A ZONING SITUATION INVOLVED, THAT WE HAVE ZONING AND ENGINEERING, MAKING SURE THAT BUSINESS IS LICENSED OR CAN BE LICENSED TO OPERATE IN THAT AREA OF THE CITY. SO THOSE KINDS OF THINGS HAVE, YOU KNOW, ADDED AN ADDITIONAL BURDEN THROUGH ON TOP OF THE FACT THAT, YOU KNOW, WE CAN'T ALWAYS SPOT CHECK. SO WHAT I'VE DONE IS TAKEN THE 2.3 MILLION REGISTERED BUSINESSES IN THE COMMONWEALTH OF PENNSYLVANIA, LOOKED FOR ALL SPELLINGS OF THE CITY OF ALLENTOWN, AND COMPARE THAT WITH THE LIST WE HAVE. AND NOW SOME PEOPLE REGISTER BUSINESSES, SOME PEOPLE, YOU KNOW, ABANDON THOSE BUSINESSES. SOME PEOPLE SET UP AN LLC WITH AN ADDRESS OF ALLENTOWN. BUT THAT POST OFFICE BOX HAS SINCE BEEN DEFUNCT FOR YEARS, AND THEN THEY NEVER UPDATE IT. WITH THE COMMONWEALTH, WE FOUND 9300 BUSINESSES JUST DOING A SIMPLE COMPARISON WITH OPEN AI, AND WE'RE GOING TO SORT THROUGH THOSE BUSINESSES TO SEE IF THEY'RE ACTIVE, TO LOOK AT SOME OF THOSE ADDRESSES, JUST TO KIND OF SEE WHAT'S GOING ON AND HOPEFULLY BE ABLE TO INCREASE, YOU KNOW, THE ENFORCEMENT, IF THOSE ARE ACTIVE, VALID BUSINESSES GENERATING REVENUE WITHIN THE CITY OF ALLENTOWN. SO I THINK WE'RE WE'RE UTILIZING A LOT OF THOSE RESOURCES THAT ARE OUT THERE, WHICH I THINK IT WILL HELP US, EVEN IF WE HAVE HUGE INCREASES AND WE'RE SENDING TO 16 OR 17,000 BUSINESSES, HOPEFULLY, AS OPPOSED TO 14,000 NEXT YEAR. 
          WELL, THANK YOU FOR THAT. THAT WAS KIND OF MY MY THOUGHT PROCESS HERE. LIKE IF, IF THIS IS AN INCREMENTAL TO GET US TO WHERE WE'RE AT, IF WE'RE EXPECTING GROWTH OR ANYTHING LIKE THAT, WHAT, WHAT SYSTEMS DO WE HAVE IN PLACE TO ASSIST US WITH THAT? AND IT SOUNDS LIKE WE'RE MOVING IN THE RIGHT DIRECTION. SO I APPRECIATE THAT. I MEAN, FOR ME, IT SEEMS KIND OF STRAIGHTFORWARD AS FAR AS INCREASING THE FEE. ANY QUESTIONS ON. YEAH. YES. MY MAIN QUESTION IS I'D BE INTERESTED IN FEEDBACK ON WHAT IT COULD LOOK LIKE TO KIND OF. 
          PROVIDE SOME STRUCTURE FOR TEMPORARY BUSINESSES, FOR SEASONAL BUSINESSES, YOU KNOW, FOLKS WHO ARE JUST SETTING UP A TENT AT A FESTIVAL. ONE TIME. I KNOW SOME CITIES, JUST A QUICK, I HATE TO ADMIT TO USING AI, BUT A QUICK LITTLE CHAT. GPT HAS SHOWN JUST A TEN MUNICIPALITIES DIDN'T REALLY DO MUCH RESEARCH, BUT JUST TEN MUNICIPALITIES THAT RANGE FROM, YOU KNOW, IT'S $5 TO $10 PER PER EVENT. AND THEN AS THE ENTREPRENEUR, YOU CAN KIND OF FIGURE OUT, AM I GOING TO DO ENOUGH BUSINESS IN ALLENTOWN TO GET THE $50 BUSINESS LICENSE? OR SHOULD I JUST DO THE $5? I WONDER IF THERE'S EVER BEEN ANY THOUGHT TO DOING THAT, BECAUSE, I MEAN, YOU KNOW, SOMEONE WHO'S OPERATING YEAR ROUND, ESPECIALLY LIKE IN THE BRICK AND MORTAR IS DIFFERENT THAN SOMEONE WHO'S COMING TO DO A FARMER'S MARKET. AND LIKE SOME CITIES, THEY, THEY HAVE THE STRUCTURE, THEY HAVE THE FARMERS MARKET. AND THEN OF 
          [00:30:08]
COURSE, THERE'S LIKE THE YEAR ROUND, ESPECIALLY LIKE WE HAD THE BUSINESS GROUP COME IN, THE DOWNTOWN BUSINESS GROUP COME IN TALKING ABOUT, YOU KNOW, THEY WANT TO DO POP UP SHOPS AND THEY WANT TO HAVE MARKETS. AND THAT CAN BE A BARRIER OF ENTRY FOR FOLKS, ESPECIALLY IN ALLENTOWN. YOU'VE GOT THE BUSINESS FEE, YOU'VE GOT THE HEALTH FEE, YOU'VE GOT TO HAVE INSURANCE. I DON'T VEND IN ALLENTOWN. IT'S TOO IT'S TOO MUCH OVERHEAD. I'D RATHER JUST GO OUT TO THE SUBURBS WHERE I DON'T HAVE THAT. SO I, I JUST WOULD LIKE YOUR THOUGHTS. YOU KNOW, I MEAN, ONE OF THE THINGS YOU TRY TO BALANCE US ALL WITH IS SAFETY OF THE RESIDENTS OF THE CITY OF ALLENTOWN. SO WHEN FOOD VENDORS COME IN AND STUFF LIKE THAT, I KNOW THEY HAVE TO GET THE HEALTH CHECK AND WHATEVER. BUT I THINK THAT'S SUPER IMPORTANT TO MAKE SURE THAT THESE FOLKS ARE SANITARY AND CLEAN. AND THAT'S JUST THE ONE EXAMPLE THAT I COULD THAT I COULD COME UP WITH. I DO KNOW WE MAKE DISTINCTIONS FROM OUTSIDE BUSINESSES OR PEOPLE THAT HAVE OUTSIDE BUSINESSES VERSUS NOT OUTSIDE BUSINESSES, AND THEN WE MAKE SURE THAT THEY'RE NOT OVERTAXED WITH REGARD TO THE REVENUE THAT THEY REPORT ON THEIR TAX RETURN. WE LOOK AND SEE WHAT REVENUE IS GENERATED WITHIN THE CITY OF ALLENTOWN, AND WE ONLY COLLECT ON THAT REVENUE. I IF THERE'S ANYTHING ELSE, I'M SORRY. YEAH. AND JUST MORE, I MEAN, HEALTH DEPARTMENT, THAT'S A WHOLE OTHER ISSUE. BUT LIKE THE BUSINESS, YOU KNOW, LIKE THE BUSINESS LICENSE, SOMEONE WHO'S JUST GOING TO COME HERE, THEY WANT TO SEE IF SOMEONE WILL BUY THEIR EMPANADAS, PAYING $50 TO TRY TO SELL THEIR EMPANADAS ONE TIME. THAT SEEMS WEIRD. THIS FEE. SO BUSINESS LICENSE FEE IS CREATED TO, TO HELP THE BUSINESS OWNER AS WELL AS THE AS THE CITY TO WHAT IT DOES IS IT VERIFIES RIGHT. WHEN WE FIND OUT THAT THERE'S A BUSINESS OR BUSINESS OWNER COMES INTO THE CITY TO REGISTER A BUSINESS, WE DO OUR DUE DILIGENCE TO VERIFY THAT THE BUSINESS HAS REGISTERED AND HAS ALL OF THE REQUIREMENTS FOR THE CITY SO THAT THAT WORK THAT IS ENTAILED IN VERIFYING THAT AND ALL OF THE STAFF AND EXPENDITURES THAT STEVE TALKED ABOUT IS WHAT THIS BUSINESS LICENSE FEE IS. BUT WHAT THE OTHER PART TO THIS THAT CITY HAS IS THE BUSINESS PRIVILEGE TAX. AND THAT IS BASED. SO BUSINESS PRIVILEGE TAX IS BASED ON THE BUSINESS YOU GENERATE SO THAT THEY'RE THEY'RE THE BUSINESS OWNER HAS A LITTLE BIT FLEXIBILITY, A ROOM WHERE YOU ARE NOT ASSESSED A FIXED AMOUNT. SO IT'S THAT FEE OR THAT TAX IS BASED ON THE REVENUE GENERATED. RIGHT. SO IF YOU WERE, LET'S SAY YOUR BUSINESS WAS JUST HERE FOR, OR FOR AN EVENT OR FOR A FAIR AND YOU BUSINESS DIDN'T GENERATE AS MUCH INCOME. SO YOU'RE NOT ASSESSED AS MUCH, WHEREAS A BUSINESS FEE IS FOR US TO ENSURE THAT ALL OF THE REGULAR REGULATORY COMPLIANCES HAVE BEEN MET. AND THAT'S WHAT THE FEE IS FOR. AND THAT'S THE ADMINISTRATIVE WORK THAT CITY DOES, IS WHAT IT JUST COVERS THAT. AND AS AS STEVE SAID, SINCE 1992, WE HAVE NOT INCREASED THE FEE. AND FOR US TO CARRY THIS OUT, THIS. CARRY THIS PROCESS OUT, IT'S THE COST HAS SIGNIFICANTLY INCREASED. 
          AND WE HAD NOT BROUGHT THIS TO COUNCIL UNTIL NOW IS BECAUSE THE COSTS ARE EXCEEDING WHAT WE ARE PAYING FOR THAT. DO YOU WANT TO ADD ANYTHING? I MEAN, DO WE HAVE LIKE A BREAKDOWN IN TERMS OF HOW MANY REGISTERED BUSINESSES ARE, YOU KNOW, LIKE YEAR ROUND BRICK AND MORTAR VERSUS HOW MANY ARE JUST LIKE POP UPS AND. HOW MUCH MONEY WOULD WE BE LOSING IF WE DID THIS? SO OUR SPECIAL EVENTS DEPARTMENT, THEY RECENTLY UNDERWENT A AUDIT FROM THE COMPTROLLER'S REPORT OR FROM THE COMPTROLLER'S DEPARTMENT. SO IN THAT AUDIT, THERE WAS MULTIPLE FILINGS. AND I KNOW A RESULT OF IT. STEVE AND THE GROUP IN REVENUE AND AUDIT HAS MET WITH PRISCILLA AND SPECIAL EVENTS TO KIND OF, YOU KNOW, DISCUSS THAT PROCESS BECAUSE WE CAN WE TEND TO KIND OF WORK IN A SILO OF THIS IS HOW WE'RE LOOKING AT THIS. SO I KNOW THEY ARE GOING TO START KIND OF GETTING THE LIST OF WHO THOSE SPECIAL EVENT VENDORS ARE AND KIND OF STREAMLINING THAT PROCESS A LITTLE BIT, BUT I'M SURE THEY CAN DEFINITELY GET AT A NUMBER OF OR WE DO DESIGNATE SPECIAL EVENT ACCOUNTS WITH ITS OWN CODE, WHICH IS LIKE AN M W. 
          SO WE CAN DEFINITELY PULL A LIST TO SEE HOW MANY OF THOSE SPECIAL EVENT VENDORS THERE ARE AND THINGS LIKE THAT. OKAY. YES. I MEAN, I COULD SEE, I MEAN, I THINK THE FEE SHOULD, YOU KNOW, 
          [00:35:03]
DEFINITELY BE LIKE THE BUSINESS LICENSE FEE SHOULD BE LOWER FOR JUST A TEMPORARY BUSINESS BECAUSE DOING SO WOULD ACTUALLY, IN SOME CASES LEAD TO MORE REVENUE. BECAUSE NOW THE BARRIER THAT EXISTED OF PAYING A BUSINESS LICENSE FOR A WHOLE YEAR THAT YOU'RE ONLY GOING TO OPERATE ONE DAY IS REMOVED AND THEN YOU GO, YOU, YOU CONDUCT YOUR BUSINESS, YOU REALIZE, WOW, I'M GOOD AT THIS. I MADE A LOT OF MONEY. LET ME GO AHEAD AND GET MY, MY $50 BUSINESS LICENSE FOR THE WHOLE YEAR. AND SO WE HAVE SO TO THE ONE THE 13,000 BUSINESSES. SO IT'S LIKE 13,750, I THINK WAS THE ROUND NUMBER OF WHAT WE ARE GOING TO SEND OUT TO BUSINESSES THIS YEAR THAT ARE FULL TIME OPERATING BUSINESSES IN THE CITY THAT WILL RENEW THEIR LICENSE AT SOME TIME IN 2027. THAT'S OUR EXPECTATION. THE OTHER THING WE'RE WORKING ON WITH SPECIAL EVENTS, WHICH I THINK IS IMPORTANT. SO THE HALLOWEEN PARADE CAME UP IN THE DISCUSSION, AND ONE OF THE THINGS THAT WE SAID IS IF THE PERSON IS DIRECTLY SELLING A GOOD OR SERVICE AT THE HALLOWEEN PARADE, NOT JUST GIVING OUT CANDY TO SOMEBODY OR TALKING ABOUT THEIR BUSINESS, IF THEY'RE SELLING SOMETHING DIRECTLY THERE. THAT'S SORT OF THE DISTINCTION WE'VE MADE. SO THEY'RE NOT GOING TO HAVE TO GET FOR THAT SPECIAL EVENT. 
          THEY'RE NOT GOING TO HAVE TO GET THEIR BUSINESS LICENSE FEE WHERE THEY MIGHT HAVE HAD TO IN THE PAST, BECAUSE THEY'RE NOT DIRECTLY SELLING T SHIRTS OR ITEMS AT THE, AT THE PARADE OR THE, THE TABLE EVENT, THE, THE WALKING PARADE THAT THEY HAVE FOR THE CITY. HOWEVER, ONE OF THE THINGS WE WORKED ON WITH PARKS IS THAT'S GOING TO ALSO BE A WAY FOR US TO DETERMINE WHO'S INTERESTED IN DOING BUSINESS WITH THE CITY, WHO MIGHT BE MAKING LEADS OR GETTING LEADS FROM OUR RESIDENTS IN THE CITY. TO YOUR POINT, YOU KNOW, HEY, I CAN DO THIS. LOOK AT ALL THE LEADS I HAVE NOW FOR MY BUSINESS. AND THEN THAT WAY WE CAN HELP EASE THEM INTO THE PROCESS WHEN THEY MAKE THAT DECISION, IF THAT MAKES SENSE. NO. YEAH IT DOES. 
          I MEAN, I WOULD JUST STRONGLY ENCOURAGE ANYONE THAT'S ON COUNCIL AND THE DEPARTMENT, THE ADMINISTRATION TO AND MAYBE NOT TONIGHT, BUT REALLY THINK ABOUT HOW TO ENCOURAGE ENTREPRENEURSHIP AND SMALL BUSINESSES. AND I THINK HAVING LESS BARRIERS AS POSSIBLE IS HOW YOU DO THAT. OBVIOUSLY, YOU KNOW, YOU NEED REGULATIONS, YOU NEED SAFETY. I GET ALL THAT. 
          BUT IT WOULD BE GREAT IF SOMETHING COULD BE STRUCTURED JUST FOR THAT, THAT ONE TIME PERSON TO SEE IF IT WORKS OUT AGAIN, I THINK IT WOULD LEAD TO MORE MONEY IN THE LONG RUN. MY OTHER QUESTION IS, I REMEMBER THERE WAS A WOMAN ON FACEBOOK, SHE WAS MAKING PLATTERS, I DON'T KNOW, OUT OF HER HOME. SHE DIDN'T HAVE A BUSINESS LICENSE. AND THEN SOMEONE LIKE REPORTED HER. AND I GUESS I DON'T KNOW WHAT HAPPENED, WHAT THE CONSEQUENCE WAS, BUT BY ORDINANCE, THE CONSEQUENCE COULD BE A $500 FINE, WHICH WOULD BE IMPOSED BY A JUDGE, WHICH MEANS WE WOULD HAVE TO FILE CHARGES ON THE PERSON. HOW DOES THE $500 LIKE HOW DOES THAT WORK? THAT'S A SHE'S A LONG WAY FROM THERE. I DON'T I DON'T KNOW IF IT WAS OUR DEPARTMENT THAT CONTACTED. IF YOU HAVE THE NAME OF THE BUSINESS, I WILL BE HAPPY TO GET BACK TO YOU AND LET YOU KNOW THE SITUATION. WELL, MY QUESTION, I MEAN, I REFERENCED HER, BUT IT'S MORE GENERAL. YES. SO IN GENERAL, THERE'S A IF THE BUSINESS DOESN'T HAVE A LICENSE, WE LET THEM KNOW THEY GET 30, 60, 90 DAY NOTICES. SPECIFICALLY WITH REGARD TO THE REVENUE REPORTING, THE REVENUE. AND AT 90 DAYS, WHAT HAPPENS IS THEY GET AN ASSESSMENT. SO A SIMILARLY SITUATED BUSINESS IN THE CITY OF ALLENTOWN. WHAT WE WOULD EXPECT IN THE MAKE, WE WOULD GIVE THEM AN ASSESSMENT AND THEN THAT ASSESSMENT BECOMES DUE, WHICH WE COULD, YOU KNOW, COLLECT AND ENFORCE UPON THAT BUSINESS. HOWEVER, WHAT USUALLY HAPPENS BEFORE THAT IS THE PERSON COMES IN, EXPLAINS THE SITUATION, EITHER SHOWS US THEIR RECEIPTS OR THEIR TAX RETURNS, AND THEN WE ADJUST THE ASSESSMENT ACCORDINGLY, GET THEM COMPLIANT, AND WE NEVER GET WE VERY RARELY GET TO THAT FINAL STEP, PRIMARILY BECAUSE WE WANT PEOPLE TO BE COMPLIANT. WE WANT PEOPLE TO BE FOLLOWING THE RULES, AND WE DON'T WANT TO COLLECT MORE MONEY THAN WE'RE ENTITLED TO. SO THAT BEING THE CASE, I THINK, YEAH, THERE MIGHT HAVE BEEN A COMPLAINT ON FACEBOOK, BUT THAT IS, YOU KNOW, BEFORE WE WOULD GET TO THAT FINAL STEP OF THE FINES AND ALL THAT OTHER STUFF, THERE WOULD BE THERE'S A RIGOROUS, YOU KNOW, CERTIFIED LETTERS THAT GO BACK AND FORTH IN A COMPLIANCE PROCESS THAT HAPPENS. OKAY. BUT SO IF SOMEONE WERE THEY, THEY GO THROUGH ALL THAT AND THEY'RE CALLED AGAIN, SELLING THEIR PLATTER. THE CITY, IF THEY CITY WANTED TO, THE WAY THAT THEY WOULD INFLICT THAT $500 FINE 
          [00:40:08]
WOULD BE THROUGH THE CRIMINAL JUSTICE SYSTEM. YEAH. SO THERE WOULD BE TWO, I GUESS, ACTIONS TO RECOUP THAT MONEY, A CRIMINAL CASE WHICH THE STAFF WOULD FILE A NON-TRAFFIC COMPLAINT. BUT THAT'S NOT THE ROUTE WE WOULD TAKE. WE WOULD TAKE CIVIL ACTION. SO WE'D GO AFTER THE MONETARY AMOUNT. WE WOULDN'T GO FOR A CRIMINAL COMPLAINT. IT WOULDN'T BE A NON-TRAFFIC THAT WOULD LEAD TO THE FINE THAT'S THAT'S REFERENCED IN THE ORDINANCE. WE WOULD SEND THE NOTIFICATION, THE ASSESSMENT ON WHAT THE ASSESSMENT IS WITH THE BUSINESS LICENSE, AND THEN THEY WOULD HAVE ADMINISTRATIVE TIME TO SUPPLY THEIR TAX RETURNS OR APPEAL THE ASSESSMENT. AND THEN IF THEY WOULDN'T DO THAT, THEN A CIVIL ACTION WOULD BE FOR THAT MONETARY AMOUNT. AND IF SOMEONE IS COOKING OUT OF THEIR HOME AND I DON'T KNOW, NOSY NEIGHBOR REPORTS THEM TO THE CITY. AND I MEAN, THEY'RE NOT FILING TAXES AND THEY JUST SAY, HEY, OKAY, SORRY, I QUIT THE THEN IT'S OVER WITH. LIKE, IF THEY'RE NOT FILING TAXES, A LOT OF PEOPLE ARE NOT FILING THE TAXES. SO IF YOU'RE SAYING, HEY, WE FOUND, YOU KNOW, YOU WERE REPORTED TO BE CONDUCTING AN UNREGISTERED BUSINESS AND THEN THEY EITHER DON'T RESPOND OR THEY DO FESS UP. YES, I'VE BEEN DOING THAT. NO, I HAVEN'T BEEN FILING TAXES BECAUSE, YOU KNOW, I'M JUST SELLING PLATTERS TO GRANDMAS AND I'LL JUST STOP DOING IT. WHAT DOES THE CITY JUST END IT AND SAY, OKAY, THANK YOU. OR SO WE DO. THAT'S HOW WE VERIFY. HOW DO THEY REPORT TO THE IRS? SO WE ASK FOR THEIR TAX RETURN AND WE REVIEW THE TAX RETURN. IF THERE'S NO BUSINESS ACTIVITY ON THEIR TAX RETURN THEN WE EXONERATE THAT OUTSTANDING BILL. 
          AND IT GETS CLOSED THAT THEIR OUTSTANDING BALANCE GETS REMOVED, GETS EXONERATED. OKAY. 
          SO THAT'S HOW WE VERIFY. SO I THINK YOU WHAT YOU ARE SAYING IS HOW DO YOU MAKE SURE THAT THERE IS NO BUSINESS ACTIVITY SOMEONE REPORTED AND IS IT A TRUE BUSINESS ACTIVITY? IF IT WAS A TRUE BUSINESS ACTIVITY, THEY WOULD REPORT IT ON THEIR TAX RETURN. WE WOULD ASK FOR THAT A COPY OF THEIR TAX RETURN, REVIEW IT. AND NO BUSINESS ACTIVITY IS LISTED TO THE IRS. 
          AND WE EXONERATE ALL OF THE OUTSTANDING BILLS THAT WE MIGHT HAVE ISSUED. THAT'S OUR WAY OF VERIFYING THAT THERE IS NO TRUE BUSINESS ACTIVITY. OKAY. IRS MAY NOT BE AS FORGIVING. YEAH, YEAH, YEAH. BECAUSE I'M JUST THINKING, LIKE, IF I'M MAKING PLATTERS, I'M NOT GOING TO REPORT IT TO THE GOVERNMENT AND THEREFORE IT'S NOT GOING TO BE ON MY TAX RETURN. AND THEN YOU ALL ASK FOR MY TAX RETURN AND I'M GOOD. I JUST KEEP MAKING THE PLATTERS AND Y'ALL DON'T EVEN KNOW. IT'S VERY CHALLENGING TO SUBSTANTIATE SOMETHING. I MEAN, I'M OKAY WITH IT. LIKE PEOPLE NEED TO MAKE MONEY. SO WE WOULD LIKE TO GIVE CREDIT. YEAH. YOU'RE BRINGING UP GOOD, GOOD POINTS. WE'LL LOOK INTO FURTHER. BUT THIS IS OUR PRACTICE CURRENTLY THAT. SO I THINK OUR POINT IS THAT WE DO OUR DUE DILIGENCE. WE TRY TO AVOID GOING TO COURT. 
          AND AS MIKE SAID, CIVIL COMPLAINT NOTHING CRIMINAL. AND THEN OKAY, MAJORITY 99% OF THE TAXPAYERS COME IN. IT'S AN OVERSIGHT. THEY DIDN'T KNOW. WHAT HAPPENS IS THEY REALLY DON'T KNOW BECAUSE NOT EVERY PLACE HAS A BUSINESS LICENSE OR BUSINESS PRIVILEGE TAX. SO THAT BECOMES AN EDUCATION FOR THEM. AND THEY JUST OH, SORRY, WE DIDN'T KNOW. AND WE END UP RESOLVING IT IN A VERY FRIENDLY MANNER. OKAY, COOL. JUST GOOD TO SEE. IT'S NOT A CRIMINAL. 
          IT'S, IT'S CIVIL IF IT DID GET TO THAT POINT. BUT YEAH, I THINK THAT'S EVERYTHING. AGAIN, JUST I WOULD REALLY ENCOURAGE SOMEONE TO DECIDE IF IT WOULD BE POSSIBLE TO MAYBE HAVE A STRUCTURED OR TIERED BUSINESS LICENSE. I THINK THAT WOULD ACTUALLY SPUR SOME ECONOMIC GROWTH. I MEAN, WHEN THESE POP UP SHOPS EVER, IF THEY EVER ACTUALLY DO HAPPEN, YOU KNOW, IF YOU'RE ONLY GOING TO BE THERE THREE MONTHS AND YOU'RE CHARGED THE SAME PRICE AS SOMEONE WHO'S THERE FOR 12 MONTHS. A YEAH, SO I THINK YOU'RE BRINGING UP AN EXCELLENT POINT. AND WE'LL, WE'LL REVIEW THAT. WE ARE TAKING THAT INTO CONSIDERATION. WE DEFINITELY REVIEW IT. AND I KNOW YOU TOUCHED ON, YOU KNOW, THOSE PEOPLE, THE ENTREPRENEURS WHO WANT TO START OUT, THE CITY DOES HAVE A PROGRAM IN COMMUNITY AND ECONOMIC DEVELOPMENT, THE BUSINESS EXPANSION, ATTRACTION AND RETENTION. IT'S A SMALL PROGRAM OF TWO INDIVIDUALS, BUT THEY CAN BE USED AS A TOOL FOR, FOR ANY ENTREPRENEURS TO KIND OF UNDERSTAND THAT PROCESS AND, AND KIND OF LEAD THEM IN THE RIGHT DIRECTION. SO I WOULD 
          [00:45:03]
JUST LIKE TO POINT OUT THOSE TWO AS WELL. THANK YOU, I APPRECIATE THAT I WAS GOING TO SAY THE SAME THING. I THINK THERE I THINK WHEN WE LOOK AT THAT 13,750, THERE ARE PROBABLY SEVERAL THOUSAND LEGITIMATE BUSINESSES THAT ARE CREATING MORE THAN JUST A COUPLE BUCKS A YEAR THAT I THINK, YOU KNOW, THE CITY WANTS TO MAKE SURE WE'RE STAYING ON TOP OF AND FOR WHATEVER AMOUNT. AND I CAN'T EVEN BEGIN TO GUESS OF, AND I KNOW THERE'S A LOT OF PEOPLE WHO WANT TO START BUSINESSES, YOU KNOW, I THINK THERE'S MAYBE A WAY WE CONNECT THEM TO OUR CITY, YOU KNOW, DEPARTMENT AND MAYBE THE EXISTING INFRASTRUCTURE, MAYBE IN THE APPLICATION, THERE'S A BLURB THAT SAYS, HEY, ARE YOU INTERESTED IN STARTING A BUSINESS? OR, YOU KNOW, MAYBE THERE'S A WAY TO CONNECT THEM TO ONE OF THESE ORGANIZATIONS THAT OR STRUCTURES SYSTEMS THAT WE HAVE IN PLACE AND MAYBE THEY'RE EXEMPT, CHANCES ARE, OR WE COVER THE FEE THROUGH SEED OR SOMETHING. AND I WOULD GO AS FAR TO SAY MAYBE OFF ON A LIMB HERE, MAYBE THAT AMOUNT MIGHT BE INSIGNIFICANT COMPARED TO ALL THE OTHER BUSINESSES WE HAVE IN THE CITY THAT DO GENERATE, YOU KNOW, REVENUE AND REPORT IT. AND I MET WITH THAT TEAM IN THE TWO MONTHS I THE MONTH I'VE BEEN HERE, I'VE MET WITH THEM TWICE ALREADY BECAUSE WE WERE TALKING ABOUT HOW TO STREAMLINE THE PROCESS BECAUSE IT CAN BE CONFUSING DEPENDING ON WHAT BUSINESS YOU START. SO ONE OF THE THINGS, IF THEY BRING THEM IN, THEY HAVE A FRIEND IN ME, THEY HAVE A FRIEND IN DC THAT CAN HELP THEM THROUGH THE PROCESS TO GET THEM GOING. SO THERE AREN'T BARRIERS THERE. THERE ARE RELATIONSHIPS THAT ARE FORGED. ABSOLUTELY. I GUESS JUST ANOTHER THING. WORTH NOTING AND HONESTLY, IT'S ESCAPING RIGHT NOW. BUT THE OTHER PART, AGAIN, WHEN YOU'RE GOING THROUGH THE STATE SYSTEM, THOSE ARE PEOPLE WHO HAVE REGISTERED A BUSINESS, HAVE BEING SOMEONE WHO'S FILED FOR AN LLC IN THE PAST, YOU KNOW, THAT'S A $200 PROCESS. SO CHANCES ARE YOU'VE ALREADY COMMITTED ANOTHER STEP TO THAT POINT. SO AT THAT POINT, YOU'RE AT A DIFFERENT LEVEL. SO IT'S NOT LIKE, YOU KNOW, WE'RE HOPPING ON FACEBOOK TO FIND PEOPLE TO CHARGE $50. WE'RE LOOKING AT THE STATE SYSTEM. 
          BUT UNDERSTOOD. AND I THINK YOU BRING UP A VALID CONCERN THAT, YOU KNOW, IF SOMEBODY DOESN'T, YOU KNOW, HONESTLY, SOMETIMES IT'S JUST GOOD INTENTIONS. YOU DON'T EVEN KNOW THAT THIS SYSTEM IS IN PLACE. YOU DON'T EVEN KNOW YOU'RE SUPPOSED TO GET A BUSINESS LICENSE TO DO BUSINESS IN ALLENTOWN. AND I THINK THERE SHOULD BE AN AVENUE FOR THAT. YEAH. AND HONESTLY, ONE OF THE POINTS I WANT TO MAKE IS GONE NOW. SO I GUESS WE'LL NEVER KNOW. ALL RIGHT. 
          WELL, THANK YOU FOR THAT. I GUESS JUST DO WE HAVE A MOTION TO FORWARD THIS FORWARD TO COUNCIL. DO WE FEEL THAT THIS, YOU KNOW, REQUIRES ANY MORE CONVERSATION? I THINK THERE'S, YOU KNOW, A CLEAR NEED TO UPDATE THE SYSTEM AND MAKE SURE THAT WE CAN COLLECT ON SOME OF THE, YOU KNOW, EFFORT OUR DEPARTMENTS ARE GOING THROUGH. BUT, YOU KNOW, WHAT DO YOU THINK? I MEAN, YEAH, LIKE I, I, AGAIN, I DO THINK THERE SHOULD BE LIKE A KIND OF LIKE A TIERED SYSTEM, BUT DOESN'T SEEM LIKE THAT'S GOING TO HAPPEN. SO I'LL GO AHEAD AND MAKE THE MOTION TO MOVE THIS FORWARD. I APPRECIATE THAT. I'LL SECOND THAT MOTION. I GUESS. ALL IN FAVOR I YEAH. 
          OKAY. THANK YOU. WE'LL FORWARD THAT FORWARD TO COUNCIL. BUT I DO THINK, YOU KNOW, WE CAN MAKE IT A PRIORITY TO FOLLOW UP ON THAT AND SEE WHAT WHERE WE LAND ON FACILITATING THAT. 
          DEFINITELY. WE WILL EXPLORE YOUR SUGGESTION AND COME BACK TO COUNCIL. THANK YOU. ALL RIGHT. AND THEN THE LAST THING ON OUR AGENDA, AND I WANT TO BE COGNIZANT OF TIME BECAUSE I KNOW WE'RE STARTING TO GO OVER FINANCIAL REPORTS. SO I BELIEVE WE HAVE A REPORT FOR AUGUST. 
          SURE. THANK YOU. I PROVIDED THE MEMO EARLIER TODAY TO YOU, SO I KNOW I'LL KEEP THE TIME IN MIND, BUT BRIEFLY WALK YOU THROUGH. AND THE MEMO GOES INTO DETAIL. SO OVERALL GENERAL FUND CONTINUES TO PERFORM WITHIN EXPECTATIONS. THE REVENUES AND NET OF OF COURSE, WE BEGAN REPORTING REVENUES, NET OF LIABILITY AND A TOTAL APPROXIMATELY 113.8 MILLION. 
          AND THAT IS ABOUT 75% OF THE ANNUAL BUDGET FOR THE GENERAL FUNDS REVENUE. AND THE THE PRIMARILY, YOU SEE, THE TAX IS 39.2 MILLION. PROPERTY TAX BRINGS IN ABOUT 39.2 MILLION EARNED INCOME TAX. NEXT IN LINE AS OF END OF AUGUST IS AT 33.6 MILLION. AND THE BUSINESS TAX AT 11.8. THE OTHER. THEN I ALSO REPORTED ON THE GENERAL FUND EXPENDITURES. EXPENDITURES ARE AT 57%, OR 88.8 MILLION OF THE ANNUAL BUDGETED AMOUNT. THEY ARE TRENDING AT 3% LOWER THAN THE SAME PERIOD LAST YEAR. BUT SOME OF THE EXPENDITURES DO NOT OCCUR EVENLY THROUGHOUT THE 
          [00:50:04]
YEAR. SO I WANT YOU TO KEEP THAT IN MIND. SO CURRENT SPENDING REMAINS BELOW STRAIGHT LINE ANNUAL BUDGET RATE, THOUGH THE OTHER OPERATING FUNDS WE HAVE THE RISK FUND, STORMWATER FUND, SOLID WASTE FUND, BUILDING CODE FUND. ALL OF THEM ARE TRACKING WITHIN EXPECTED RANGES. AND WE'LL CONTINUE MONITORING THESE FUNDS CLOSELY THROUGHOUT THE YEAR, AND PARTICULARLY SOME OF THE FUNDS WITH POTENTIAL REVENUE AND EXPENDITURE PRESSURES LIKE THE RISK FUND. ONE OF THE AREAS I WANT TO HIGHLIGHT IS THE PUBLIC SAFETY PREMIUM. WE ARE TRENDING AT A HIGHER AROUND THIS TIME THAN WE DID LAST YEAR. AT THE SAME TIME, POLICE HAVE SPENT 1.9 MILLION ON PREMIUM PAY. FIRE IS AT 2.08 AND EMS HAS SIX 607,000 AND THEY ARE RUNNING HIGHER THAN EXPECTED IS BECAUSE THEY'RE FILLING THE REQUIRED STAFFING FOR THIS PUBLIC SAFETY DEPARTMENTS, AND THE VACANCIES FROM, YOU KNOW, STAFFING VACANCIES LEAVE COVERAGES AND INJURIES AND THINGS LIKE THAT IS WHY IT'S TRENDING. PREMIUM PAY IS TRENDING HIGHER. GENERAL FUNDS. AND I'LL WALK YOU THROUGH THE CASH, WHICH IS THE NEXT NEXT SLIDE, PROBABLY GENERAL FUND CASH IS AT 66.4 MILLION. AND IT'S A DIVERSIFIED INVESTMENT PORTFOLIO WITH PLEDGET AND TD BANK. THE LADDERED INVESTMENTS THROUGHOUT THE YOU KNOW, WE DO COMPETITIVE INVESTING AND RETURNS ARE SCHEDULED TO ADDRESS THE LIQUIDITY THROUGHOUT 2027. AND I PROVIDED THE DETAILED MATURITY SCHEDULE TO YOU IN THE ON THE NEXT PAGE. SO OVERALL, CITY'S FINANCIAL POSITION REMAINS STABLE THROUGH END OF AUGUST. AND WE WILL CONTINUE MONITORING THE REVENUES, EXPENDITURES, PREMIUM PAY, AND THE NEEDS RELATED ADJUSTMENTS. 
          AND WE ARE ADDRESSING SOME OF THESE THINGS IN OUR 2027 BUDGET. OKAY. THAT'S MY REPORT FOR YOU. 
          AND I'LL PAUSE FOR ANY QUESTIONS YOU HAVE FOR ME. THANK YOU. HONESTLY, I THINK IT'S PRETTY STRAIGHTFORWARD. I APPRECIATE THE UPDATE. I THINK, YOU KNOW, IT'S SOMETHING WE WANT TO KEEP AN EYE ON AS FAR AS THE PREMIUM PAY ITEM. AND, YOU KNOW, UNFORTUNATELY, WITH LIFE SAFETY AND, YOU KNOW, PUBLIC SAFETY ITEMS, IT'S IT'S KIND OF WHAT IT IS GIVEN THE SITUATION. AND SO HOPEFULLY, YOU KNOW, WE'RE, WE'RE SEEING THESE LEVEL OUT. BUT, YOU KNOW, IT'S, IT'S THE NATURE OF WANTING TO MAKE SURE OUR CITY IS SAFE AND HEALTHY AND, YOU KNOW, MAKING SURE WE PROVIDE THESE SERVICES FOR OUR RESIDENTS. SO I'LL OPEN IT UP TO EVERYONE ON THE. ANYONE ON THE DAIS? ANY QUESTIONS BASED OFF OF THE AUGUST REPORT? ALL RIGHT. IF NOT, THANK YOU. THAT WAS THE LAST ITEM ON OUR AGENDA. I WILL SAY, IF THERE'S ANYTHING ELSE YOU'D LIKE TO ADD, FEEL FREE. JUST A NOTE, AS YOU HEARD, MY TREASURY TEAM WORKING ON THE MUNIS IMPLEMENTATION, WE ARE AT THE AT TAIL END OF IT. WE ARE GOING LIVE WITH PAYROLL AND WE ATTEMPTED FOR THIS PAY PERIOD, WE COULDN'T SUCCEED. SO THE NEXT PAY WE SHOULD BE 100% LIVE WITH MUNIS. SO I'M PRETTY EXCITED ABOUT THAT. IT TOOK US FROM NOVEMBER OF 2023 TO NOW TO, TO COMPLETE OUR FINANCIALS, YOU KNOW, MUNIS IMPLEMENTATION. IT'S A NOT AN EASY THING WORKING WITH TWO DIFFERENT SYSTEMS, TWO DIFFERENT ERP SYSTEMS, REPAIRING, AS YOU HEARD THE FINANCIAL STATEMENTS FOR A COUPLE OF YEARS, WE DID THIS IN THREE YEARS IN A ROW AND IT WAS CHALLENGING. SO I APPRECIATE EVERYONE'S PATIENCE AND HELP, AND I'M ALWAYS GRATEFUL TO MY TEAM. ABSOLUTELY. THANK YOU SO MUCH AND WE APPRECIATE YOU GUYS. THANK YOU. 
          AND
* This transcript was compiled from uncorrected Closed Captioning.