* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.
          GOOD AFTERNOON, 
          [00:00:01]
EVERYONE. 
          I AM GOING TO CALL TODAY'S FINANCE COMMITTEE MEETING TO ORDER. 
          THE CALL OF TODAY'S MEETING IS TO REVIEW AND DISCUSS THE OPERATING BUDGET IN ADVANCE OF THE FY 27 BUDGET SEASON. 
          THE FIRST ORDER OF BUSINESS IS A ROLL CALL OF MEMBERS PRESENT. 
          COUNCIL ZUBIE. 
          PRESENT. 
          PRESENT, VICE MAYOR. 
          PRESENT PRESENT, COUNCILOR FLAHERTY. 
          ABSENT COUNCILLOR MCGOVERN. 
          PRESENT. 
          PRESENT, COUNCILLOR NOLAN. 
          ABSENT COUNCILLOR SIMMONS. 
          ABSENT, COUNCILLOR SABRINA WHEELER. 
          PRESENT. 
          PRESENT, COUNCILOR ZUI. 
          PRESENT. 
          PRESENT, MAYOR SIDIKI. 
          PRESENT. 
          PRESENT. 
          AND YOU HAVE SIX MEMBERS RECORDED AS PRESENT. 
          AND THREE RECORDED IS ABSENT. 
          THANK YOU. 
          PURSUANT TO CHAPTER TWO OF THE ACTS OF 2023, ADOPTED BY MASSACHUSETTS GENERAL COURT AND APPROVED BY THE GOVERNOR, THE CITY'S AUTHORIZED TO USE REMOTE PARTICIPATION AT MEETINGS OF THE CAMBRIDGE CITY COUNCIL AND ITS COMMITTEES. 
          PLEASE NOTE THAT THE CITY OF CAMBRIDGE AUDIO AND VIDEO RECORDS THIS MEETING AND MAKES IT AVAILABLE TO THE PUBLIC FOR FUTURE VIEWING. 
          IN ADDITION, THIRD PARTIES MAY ALSO BE AUDIO AND VIDEO RECORDED IN RECORDING THIS MEETING. 
          IN ADDITION TO HAVING MEMBERS OF THE COUNCIL PARTICIPATE REMOTELY, WE HAVE ALSO SET UP ZOOM TELECONFERENCE FOR PUBLIC COMMENT. 
          WE WILL ALLOW EACH SPEAKER, CURRENTLY THREE MINUTES TO SPEAK DURING PUBLIC COMMENT. 
          YOU MUST SIGN UP AT HTTPS SLASH WWW.CAMBRIDGEMA.GOV DEPARTMENTS CITY COUNCIL SLASH PUBLIC COMMENT SIGNUP FORM. 
          IT'S A LOT. 
          YOU CAN ALSO EMAIL WRITTEN COMMENTS FOR THE RECORD TO THE CITY CLERK AT CITY CLERK@CAMBRIDGEMA.GOV. 
          WE WELCOME YOUR PARTICIPATION. 
          YOU CAN SIGN UP UNTIL 3:30 PM TO WATCH THE MEETING. 
          PLEASE TUNE INTO CHANNEL 22 OR VISIT THE OPEN MEETING PORTAL ON THE CITY'S WEBSITE. 
          AND WITH THAT, ALL OF TODAY'S VOTES WILL BE BY ROLL CALL. 
          THE ORDER OF OPERATIONS FOR THIS MEETING TODAY IS AYAS FINANCE CO-CHAIR, HAVE OPENING REMARKS AND FINANCE CO-CHAIR COUNSELOR NOLAN WILL ALSO ADD TO THAT ONCE SHE JOINS, IF SHE'D LIKE JUST A QUICK NOTE, I'LL BE CHAIRING THE MEETING UNTIL SHE JOINS, AND THEN WE'LL SWITCH OFF. 
          WE WILL HAVE A PRESENTATION BY THE CITY IN WHICH WE'LL HAVE CLARIFYING QUESTIONS BY COUNSELORS. 
          AFTER THAT, WE'LL HAVE PUBLIC COMMENT AND THEN WE'LL HAVE A COUNCIL DISCUSSION. 
          I'LL START OFF BY THANKING THE CITY STAFF FOR THEIR WORK ON THE BUDGETING PROCESS AND PREPARING THIS COMPREHENSIVE PRESENTATION. 
          THIS PROCESS IS ONGOING AND IT IS VITAL TO CONTINUE ENGAGING WITH OUR COUNCIL'S INPUT AS WELL AS OUR COMMUNITIES CO-CHAIR COUNCILLOR NOLAN WILL PROVIDE MORE INFO ON HER IN HER REMARKS IF SHE WISHES ON FOLLOWING WORK FROM THE LAST TERM. 
          TODAY, WE WILL BE HEARING ABOUT ECONOMIC TRENDS AND OUR BUDGET CAPACITIES AS WELL AS POSSIBLE TAX LEVY CHANGES AND RISKS AND FEDERAL FUNDING CHANGES. 
          THE FINANCIAL DATA BEFORE US DOES RAISE CONCERNS WITH COMMERCIAL, COMMERCIAL PROPERTY VALUES DECLINING. 
          WE FACE A ROUGHLY $12 MILLION DEFICIT TO ACHIEVE A RESPONSIBLE BUDGET TARGET WITHOUT SIGNIFICANTLY SHIFTING THE TAX BURDEN ONTO THE SHOULDERS OF OUR WORKING FAMILIES AND RESIDENTIAL PROPERTIES. 
          I'LL BE FOCUSED ON UNDERSTANDING HOW TO ENSURE OUR MOST VULNERABLE AND NOT DISPROPORTIONATELY IMPACTED BY THESE CHANGES, ESPECIALLY ONES THAT OUR COMMUNITY MEMBERS RELY UPON. 
          COUNCILLOR NOLAN AND I WILL BE WORKING ON BEST HOW TO IMPROVE OUR COUNCIL PRIORITY PROCESS AS IT RELATES TO THE BUDGET TIMELINE, AS WELL AS ASKING YOU TO HELP US EXPLORE OPTIONS FOR REVENUE POSSIBILITIES THAT ENSURE EVERYONE IS PAYING THEIR FAIR SHARE. 
          THESE CHANGES TO DEVELOPMENT REQUIRE THOUGHTFUL APPROACH TO THE FUTURE OF OUR, TO THE FUTURE OF OUR CITY'S GROWTH AND THE IMPLICATIONS ON OUR COMMUNITY. 
          I LOOK FORWARD TO CONTINUING TO LEARN AND GROW WITH YOU ALL. 
          WITH THAT, I'LL HAND IT 
          [CITY MANAGER'S AGENDA]
OVER TO THE FINANCE TEAM AND THE CITY MANAGER WHO, UH, WILL INTRODUCE THE TEAM AS WELL AS THE PRESENTATION. 
          AND JUST A QUICK REMINDER THAT WE'LL BE LIMITED TO CLARIFYING QUESTIONS BEFORE MOVING TO PUBLIC COMMENT AND A DISCUSSION. 
          THE FLOOR IS YOURS. 
          THANK YOU. 
          UM, WE'RE VERY HAPPY TO BE HERE, UH, THIS AFTERNOON. 
          UM, UH, CITY MANAGER, DO YOU WANNA MAKE ANY OPENING REMARKS OR SHOULD WE GO RIGHT TO THE PRESENTATION? UM, HAPPY FOR US TO START WITH THE PRESENTATION. 
          UH, GREAT. 
          WELL, THANK YOU AGAIN. 
          WE'RE HAPPY TO BE HERE TODAY. 
          AND OUR PRESENTATION TODAY, UM, REALLY CONTAINS A LOT OF MATERIAL THAT WE'VE ALREADY SHARED, UH, WITH, UH, THE CITY COUNCIL, UH, LAST TERM IN THE FALL. 
          UM, BUT WE THOUGHT THAT IT WOULD BE HELPFUL TO SORT OF REFRESH, UM, EVERYBODY'S MEMORY AND PERHAPS, YOU KNOW, SINCE WE HAVE NEW MEMBERS, UM, ON THE COUNCIL ALSO, UH, BE ABLE TO, YOU KNOW, ENGAGE IN THE CONVERSATION, ANSWER CLARIFYING QUESTIONS, UM, AND AS WELL, I THINK IT IS A GOOD THING FOR US TO HAVE AT THE FOREFRONT AS WE REALLY SORT OF ARE REALLY BARRELING THROUGH THE, YOU KNOW, THE, THE PREPARATION FOR THE FY 27 BUDGET. 
          UM, SO, UM, WITH THAT, UH, NEXT SLIDE, PLEASE. 
          UH, 
          [00:05:01]
UH, SO ESSENTIALLY I THINK WE'VE, WE, YOU KNOW, AS, AS WE'VE SHARED WITH THE COUNCIL BEFORE AND REALLY OVER A COUPLE OF YEARS, UM, WE BELIEVE THAT WE ARE IN A, UM, MULTI-YEAR, UM, ECONOMIC, UH, DOWNTURN. 
          UH, TWO YEARS AGO IN 2024, WE BEGAN TO SEE SOME, SOME EARLY EVIDENCE, UM, THAT THE MACRO ECONOMIC, UM, CONDITIONS WERE NOT NEARLY AS ROBUST AS THEY HAD BEEN FOR THE PAST DECADE. 
          UM, THIS WAS EVIDENT IN A SLOWDOWN IN, UM, IN DEVELOPMENT, A SLOWDOWN IN OUR, UH, BUILDING PERMITS AND SOME OF OUR OTHER NON-PROPERTY TAX REVENUES. 
          AND WE BEGAN TO DO SOME WORK INTERNALLY ON THE FINANCE TEAM TO DO SOME MODELING AND SOME SCENARIO PLANNING. 
          UM, AND AT THAT TIME, UH, NOW 18 MONTHS, ALMOST TWO YEARS AGO, WE BEGAN TO TALK ABOUT TRYING TO, UM, MODERATE OUR BUDGET GROWTH, UH, DURING THIS PERIOD, UM, IN ORDER TO ENSURE THAT WE, UM, PRESERVE, UM, OUR FINANCIAL STABILITY AND OUR FINANCIAL FLEXIBILITY, UM, PRIMARILY AROUND OUR EXCESS LEVY CAPACITY. 
          UM, BUT IN ADDITION ALSO WITH, UM, SOME CONCERN ABOUT IMPACTS, UM, ON OUR TAXPAYERS. 
          SO, NEXT SLIDE PLEASE. 
          SO, UH, THIS PAST FALL, UM, WHICH, UH, WE CAME AND WE SHARED AGAIN THAT THE CITY WAS FACING A MULTI-YEAR DOWNTURN. 
          UM, AND AT THAT POINT WE ACTUALLY HAD EVIDENCE OF OUR FALLING COMMERCIAL VALUES, UM, SOME ADDITIONAL WEAK ECONOMIC TRENDS AND SLOWER DEVELOPMENT. 
          NEXT SLIDE. 
          SO, WHEN WE CERTIFIED OUR TAX, UH, OUR, OUR PROPERTY TAX VALUES, UH, IN THE FALL, UM, AS WE WERE, UM, SETTING THE TAX RATE TO FUND THE FY 26 BUDGET, UM, ARE THE DATA THAT WE HAD AT THE TIME, WHICH IS OUR, UH, MOST RECENT CERTIFIED VALUES, WHAT, WHICH ARE FOR CALENDAR 2024. 
          OUR COMMERCIAL REAL PROPERTY VALUES FELL BY 12.5%. 
          BETWEEN 25 AND 26. 
          THE NEW GROWTH, WHICH ADDS TO OUR TAX BASE, UM, AS COMPARED TO THE FY 25 DECLINED BY 43%, UM, AND OUR EXCESS LEVY CAPACITY. 
          UM, ONE OF THE, UM, INDICATORS AND ONE, A SOURCE OF A GREAT DEAL OF FINANCIAL FLEXIBILITY FOR THE CITY DECLINED BY 8.6%. 
          AND AS WE, UM, WERE ALREADY TWO THIRDS OF THE WAY THROUGH, UM, CALENDAR 25, YOU KNOW, WE ALERTED THE CITY COUNCIL THAT WE BELIEVE THAT WE, THAT THESE NEGATIVE TRENDS WILL PERSIST OVER THE NEXT SEVERAL YEARS. 
          AND IN FACT, THAT WE BELIEVE THAT, YOU KNOW, WHEN WE ARE CERTIFYING OUR VALUES NEXT YEAR IN THE LATE SUMMER, EARLY FALL, WE WILL SEE VERY SIMILAR TRENDS AGAIN WITH DECLINES IN COMMERCIAL VALUE, UH, NEW GROWTH, AND OUR EXCESS LEVY CAPACITY. 
          NEXT SLIDE, PLEASE. 
          THOSE DECLINES THAT WE EXPERIENCED, UH, PARTICULARLY IN THE, THE COMMERCIAL SECTORS, ACTUALLY IMPACTED, UM, DIFFERENT, UM, SECTORS OF OUR COMMERCIAL, UM, PROPERTY OWNERS DIFFERENTLY BY, BY, UH, COMMERCIAL PROPERTY TYPE. 
          AND AS YOU CAN SEE HERE, YOU KNOW, THE, UH, VALUES FOR HOTELS AND ENDS IN THE CITY ACTUALLY INCREASED BY 3%. 
          BUT OUR LAB AND RESEARCH, UH, PROPERTIES DECLINED BY 12%. 
          OUR OFFICES DECLINED BY 15%, AND, UM, AND OUR RETAIL AND RESTAURANTS DECLINED BY 10%, BUT HOW THAT PLAYED OUT IN TAX BILLS WAS ALSO VERY DIFFERENT. 
          SO HOTEL AND MOTELS SAW ON AVERAGE A 26% RISE IN THEIR TAX BILLS. 
          RETAIL AND RESTAURANT PROPERTIES SAW A 10% ON AVERAGE RISE IN THEIR TAX BILLS. 
          UM, LAB AND RESEARCH AND OFFICE, UH, MUCH SMALLER, UH, INCREASES IN THEIR TAX BILLS AS A RESULT OF THEIR DECLINING, UM, PROPERTY VALUES. 
          NEXT SLIDE, PLEASE. 
          SO, AS WE'RE LOOKING AHEAD IN FY 27, AS I MENTIONED, WE ANTICIPATE THAT THESE NEGATIVE TRENDS CONTINUE. 
          UM, WE ACTUALLY ANTICIPATE THAT SOME OF THE SPECIFIC TYPES OF, UH, NEGATIVE TRENDS THAT WE SAW WITHIN THE COMMERCIAL CLASSES WILL PROBABLY BE VERY SIMILAR AGAIN NEXT YEAR. 
          AND WE ARE ALSO WORRIED ABOUT THE STAGNATING OR DECLINING DECLINE IN OUR NON-PROPERTY TAX REVENUES, WHICH MEANS WE ARE JUST GOING TO BE MORE DEPENDENT 
          [00:10:01]
ON PROPERTY TAXES TO FUND OUR BUDGET. 
          AT THIS POINT, THEY MAKE UP ABOUT 68% OF OUR OVERALL REVENUES. 
          UM, WE ARE CONTINUED TO BE CONCERNED ABOUT THE EROSION OF OUR, UM, EXCESS LEVEE CAPACITY BECAUSE IT WILL IMPACT OUR OVERALL FINANCIAL FLEXIBILITY IF WE WERE TO LOSE THAT EXCESS LEVEE CAPACITY. 
          UM, AND THEN OF COURSE, WE, AS WE'VE BEEN DISCUSSING, IS THE GROWING LIKELIHOOD THAT THERE WILL BE A SHIFT OF THE TAX BURDEN FROM COMMERCIAL PROPERTIES TO RESIDENTIAL PROPERTIES, PROBABLY AT SOME POINT IN THE NEXT TWO TO THREE YEAR PERIOD. 
          NEXT SLIDE, PLEASE. 
          SO WE SHARED THIS, THESE NEXT TWO SLIDES WITH YOU AS WELL, UH, IN THE FALL, WHICH IS REALLY, UM, AS WE'VE DISCUSSED THAT, THAT ONE OF THE THINGS THAT WE ARE DOING, UM, AS A FINANCIAL TEAM IS WE ARE MODELING VARIOUS SCENARIOS SO THAT WE CAN SEE, UM, SO THAT WE CAN TAKE A LOOK AND, UM, SORT OF SHARE WITH YOU TOO, UM, HOW, UM, HOW MUCH WE ARE CONCERNED THAT IF THERE ARE THINGS THAT ARE OUT OF OUR CONTROL, WHICH IS HOW QUICKLY VALUES ARE DECLINING, UM, THAT THERE CAN BE VERY DIFFERENT RESULTS BASED ON HOW MUCH, UH, VALUES DECLINE OVER THE NEXT COUPLE OF YEARS. 
          SO WE MODELED, HERE'S TWO SCENARIOS THAT WE MODELED. 
          ONE IS WHAT WE CONSIDER TO BE OUR BASE VALUE CASE, UM, IN THIS CASE AND IN IN THE NEXT MODEL AS WELL, WE'RE ASSUMING THAT OUR TAX LEVY IS GOING TO INCREASE BY 7%, WHICH IS, AS YOU CAN REMEMBER, IS OUR TARGET FOR FY 27 AND, UH, THROUGH FY 30. 
          UM, WE'RE ASSUMING THAT THERE'S SOME MODEST APPRECIATION IN GROWTH FOR RESIDENTIAL PROPERTIES SOMEWHERE IN THE TWO AND 3% NEIGHBORHOOD. 
          UM, AND THAT WE ARE ALSO ASSUMING HERE THAT THE COMMERCIAL VALUES DECLINE IN 27 AS THEY DID IN 26, AND THEN THAT THE RATE OF DECLINE MODERATES A BIT IN FY 28. 
          SO AGAIN, OUR, OUR COMMERCIAL VALUES DECLINE BY 12.5% IN 26. 
          SO THIS PRESUMES A VERY SIMILAR DECLINE IN IN 27, AND THEN THAT DECLINE STILL A DECLINE, BUT MODERATING IN FY 28. 
          AND IN THAT SCENARIO, WE SEE THAT IN FY 28, UM, THE SHIFT BEGINS TO HAPPEN WHERE SOME OF THE TAX LEVY IS SHIFTED BACK TOWARDS THE, ONTO THE RESIDENTIAL RATE PAYERS. 
          AND EVEN WITH A 7% OVERALL LEVY INCREASE RESIDENTIAL TAX, UH, THE TAX LEVY WOULD GO UP BY 10.7% AND THE COMMERCIAL TAX LEVY WOULD RISE BY 5.1% AND IT WOULD CONTINUE INTO THE NEXT YEAR WHERE WE WOULD SEE AGAIN, THE, THE FURTHER SHIFT FROM THE RESIDENT FROM THE COMMERCIAL TO THE RESIDENTIAL. 
          AND THEN FY 29. 
          IN THIS SCENARIO, UH, RESIDENTIAL TAX, UH, TAX PAYER, THE LEVY WOULD INCREASE BY 9.7 ON THE RESIDENTIAL SIDE AND 5.5% ON THE COMMERCIAL SIDE. 
          AND AGAIN, THAT WAS WITH AN OVERALL TAX LEVY OF 7%. 
          NEXT SLIDE, PLEASE. 
          IF, HOWEVER, WE'RE BEING TOO OPTIMISTIC IN OUR BASE SCENARIO AND, AND, AND COMMERCIAL VALUES DECLINE, UM, MORE THAN WE EXPECT. 
          UM, SO LET'S SAY THAT IN FY 27 AND FY 28, WE SEE THE DECLINE SIMILAR TO WHAT WE SAW IN FY 25. 
          WHAT YOU CAN SEE IS IN, IN FY 28, THE, UH, INCREASE ON THE RESIDENTIAL LEVY WOULD BE 17%, UH, WHEREAS THE COMMERCIAL, UH, LEVY WOULD INCREASE BY 1.9%, AND AGAIN, IN, IN FY 29, ANOTHER DOUBLE DIGIT INCREASE TO THE RESIDENTIAL SIDE AND A LOWER INCREASE TO THE COMMERCIAL SIDE BECAUSE WE'D BE CONTINUING TO SHIFT SOME OF THOSE TAXES. 
          BACK TO THE RESIDENTIAL NEXT SLIDE PLEASE. 
          SO, I'M SURE EVERYBODY HAS BEEN FOLLOWING SOME OF THE NEWS ABOUT THE CITY OF BOSTON, UM, THAT'S BEEN OCCURRING OVER THE LAST SEVERAL YEARS. 
          AND YOU KNOW, IN THIS CASE, THEY HAVE AL THEY'RE ALREADY AT THEIR MAXIMUM, UH, SHIFT TO THE COMMERCIAL, WHEREAS IN OUR CASE, UH, WE ARE NOT QUITE AT OUR MAXIMUM SHIFT, WHICH IS THE REASON WHY WE'RE NOT ANTICIPATING SEEING A SHIFT TO THE RESIDENTIAL BACK TO THE RESIDENTIAL AND FY 27, BECAUSE WE STILL CAN SHIFT MORE TO THE COMMERCIAL. 
          BUT FOR THE CITY OF BOSTON, THEY WERE AT THEIR MAXIMUM SHIFT IN FY 25. 
          AND BECAUSE OF THAT, EVEN THOUGH I THINK THEY HAD AN OVERALL INCREASE OF AN 8%, UH, LEVY 
          [00:15:01]
INCREASE, I CAN'T REALLY REMEMBER, THERE WAS A DOUBLE DIGIT INCREASE FOR THE RESIDENTIAL PAYERS AND THEN AGAIN IN FY 26, ANOTHER DOUBLE DIGIT INCREASE TO THE RESIDENTIAL. 
          NEXT SLIDE PLEASE. 
          SO AS WE DISCUSSED BEFORE, YOU KNOW, THE SINGLE LAYER LEVER THAT WE HAVE AS A CITY, UM, ADMINISTRATION, CITY COUNCIL, UH, TO, TO TRY TO MITIGATE SOME OF THESE, THESE NEGATIVE IMPACTS ON OUR BUDGET. 
          YOU KNOW, AS A RESULT TO FROM OF THE, THE MACRO ECONOMIC ENVIRONMENT, THE, THE LEVER THAT WE HAVE IS TO TRY TO CONTROL OUR BUDGET GROWTH SO THAT WE CAN MODERATE OUR TAX LEVY INCREASES OVER, UH, THE NEXT SEVERAL YEARS, UM, PRIMARILY TO BOTH PRESERVE, YOU KNOW, EXCESS LEVY CAPACITY, UH, AS WELL AS TO, UM, MITIGATE, UM, YOU KNOW, IMPACTS ON OUR RESIDENTIAL AND COMMERCIAL TAXPAYERS. 
          SO FOR FY 27, UH, WE HAVE SET A, A PROPERTY TAX LEVY GROWTH TARGET OF LESS THAN 7%. 
          AND THAT IS THE SAME TARGET THAT WE HAVE PRELIMINARILY SET FOR FY 28 THROUGH 30. 
          ALTHOUGH WE HAVE A A STAR THERE THAT SAYS, YOU KNOW, IF IF WE WERE TO, UM, SEE INDICATIONS OF, UM, GREATER DECLINE IN COMMERCIAL VALUES, THEN WE ANTICIPATE IT, WE MAY COME BACK AND, AND, AND, AND RETHINK THOSE TARGETS. 
          AND SO FOR FY 27, UM, IN ORDER TO MEET THAT TAX LEVY GROWTH TARGET, OUR OPERATING BUDGET REALLY CAN'T GROW MORE THAN, UH, ABOUT 5%. 
          UH, AND THE SAME, IT HOLDS TRUE FOR FY 28 THROUGH 30. 
          NEXT SLIDE PLEASE. 
          SO AGAIN, THIS IS, UH, A, A, A SLIDE THAT WE SHARED, UH, IN IN THE FALL, BUT I'LL, I'LL JUST WALK, WALK US, UH, THROUGH THE, THE INFORMATION ON THE SLIDE. 
          SO ESSENTIALLY ACHIEVING AN UNDER 5% FY 27 BUDGET GROWTH, UM, IS GOING TO BE DIFFICULT BECAUSE THERE ARE A LOT OF COSTS, UH, IN SALARY, HEALTH BENEFITS, CONTRACT COSTS, AND EVEN POTENTIAL FEDERAL GRANT CUTS, UM, THAT IS GONNA CAUSE WOULD CAUSE OUR BUDGET TO GROW MORE THAN 4.8%, UH, WHICH IS OUR, OUR ACTUAL SPECIFIC TARGET AT THIS MOMENT THAT WE'RE TRYING TO MAKE. 
          BUT TO, TO STAY UNDER 5%. 
          AND SO YOU CAN SEE HERE, YOU KNOW, IN THE, UH, TO THE LEFT THERE ARE FY 26 RECAP OPERATING BUDGET. 
          THAT'S OUR, THE BUDGET WE'RE OPERATING WITH TODAY. 
          AND THEN OUR PROJECTIONS, UH, TO, TO ROLL OUR BUDGET FORWARD TO THE NEXT YEAR IS THAT OUR, OUR CURRENT PROJECTIONS ARE THAT OUR SALARY, WAGES AND BENEFITS, WHICH INCLUDES OUR HEALTH AND PENSION AS WELL AS SALARIES, UH, GROWING BY ABOUT 30 MILLION, UM, AND PROJECTIONS FOR SUPPLIES AND CONTRACTUAL SERVICES, UH, TO GROW ABOUT, UH, 11 MILLION, OUR INITIAL PROJECTIONS FOR OUR DEBT, UM, DEBT SERVICE AND OTHER EXTRAORDINARY EXPENDITURES, BUT PREDOMINANTLY OUR DEBT SERVICE TO GROW BY 14 MILLION. 
          UM, AND THEN WE, UM, ALSO PLUGGED IN, UH, AN ESTIMATE, UH, TO, UH, REPLACE THAT FEDERAL STABILIZATION FUND THAT WE PUT ASIDE AT THE END OF, OF FY 25. 
          AND SO TO ALSO TRY TO FOLD INTO OUR OPERATING BUDGET APPROXIMATELY $5 MILLION IF NEEDED IN ORDER TO, UM, MAKE UP FOR SOME, BUT NOT ALL OF OUR FEDERAL FUNDING. 
          AND SO JUST AS WE DID THAT MATH, WE, WE CAME UP WITH A 6% BUDGET GROWTH, WHICH IS, YOU KNOW, WAS A LITTLE BIT MORE THAN A PERCENT OVER, UM, 1.2% OF WHAT WHERE WE NEED IT TO BE. 
          AND SO AS WE TOOK A LOOK AT THIS, WE, WE DETERMINED THAT WE NEEDED TO FIND SOMEWHERE BETWEEN EIGHT AND $12 MILLION, UH, IN SAVINGS IN ORDER FOR US TO BE ABLE TO MEET OUR FY 27, UH, OPERATING BUDGET TARGET. 
          NEXT SLIDE, PLEASE. 
          SO I THINK AS WE DISCUSSED, UM, IN, UM, IN THE FALL THAT ONE OF THE ACTIONS THAT THE CITY, UM, WAS TAKING, UM, WAS TO BE LOOKING, UH, IN A LOT OF AREAS THAT WERE SORT OF MORE CITYWIDE ADMINISTRATION WIDE AND WHERE ARE SOME OF THE, THE SAVINGS THAT WE MIGHT FIND OVERALL, UM, WITHIN OUR BUDGET. 
          AND SO WE, YOU KNOW, AS WE DISCUSSED, WE TALKED ABOUT ELIMINATING OUT-OF-STATE TRAVEL, UH, WITH, WITH SOME EXCEPTIONS AND, AND ACTUALLY PUT THAT INTO EFFECT, UH, SOMETIME I, I BELIEVE AS OF JANUARY 1ST, 
          [00:20:02]
UH, BUT LET OUR DEPARTMENTS KNOW AND THEN COMMITTED TO ACTUALLY, UH, REDUCING THE MONEY OUT OF THE FY 27 BUDGET, UH, BECAUSE WE WOULD CONTINUE THE MORATORIUM ON OUT OF STATE TRAVEL. 
          WE ALSO COMMITTED TO LOOKING AND, UH, AT OUR CAPITAL PROGRAM IN ORDER TO BE ABLE TO SEE, UH, WHAT PROJECTS WE MIGHT BE ABLE TO SLOW DOWN OR, OR, OR SHRINK THE SCOPE SO THAT WE ACTUALLY NEEDED TO BORROW LESS, UH, IN THIS UPCOMING, UH, BOND SALE, UH, THAT WE'LL BE DOING, UH, AT THIS IN ORDER TO SUPPORT OUR ONGOING PROGRAMS. AND WE'LL PROBABLY BE DISCUSSING A LOT MORE OF THAT NEXT WEEK IN OUR CAPITAL BUDGET UPDATE. 
          UM, ONE OF THE OTHER THINGS WE LOOKED AT WAS THAT WE KNEW WE HAD SOME EXTRA, UM, UNSPENT BALANCES IN OUR PARTICIPATORY BUDGETING. 
          SO WE, UH, NEEDED TO ALLOCATE, EVEN THOUGH OUR, OUR PARTICIPATORY BUDGETING BUDGET FOR THIS YEAR IS STILL A MILLION DOLLARS, WE DON'T NEED TO BUDGET THAT FULL AMOUNT BECAUSE WE HAVE SOME PRIOR, UM, BUDGET BALANCES THAT WE CAN REPURPOSE. 
          AND THEN ANOTHER REALLY BIG ONE IS OUR WORK WITH A HEALTH BENEFITS BROKER TO HELP US IDENTIFY SAVINGS AND, AND THOSE SAVINGS ARE REALLY, UM, LOOKING AT SAVINGS WITHOUT REALLY CHANGING OUR BENEFITS, WHAT OUR EMPLOYEES GET. 
          BUT ARE, WERE WE GETTING, ARE WE GETTING THE BEST PRICES? AND WE'VE, YOU KNOW, WE'RE, WE'RE COMING, UM, PRETTY CLOSE TO BEING ABLE TO UNDERSTAND WHAT THOSE SAVINGS ARE, BUT IT HAS BEEN A VERY BENEFICIAL PROCESS AND WE DO BELIEVE THAT COMPARED TO WHAT WE THOUGHT WE WOULD NEED TO SPEND, UM, WHEN WE DID OUR PROJECTIONS, UH, IN THE FALL, WE WILL BE SEEING, UM, SEVERAL MILLION DOLLARS WORTH OF SAVINGS. 
          UM, IN ADDITION, WE TURNED TO OUR DEPARTMENTS, UM, AND WE ASKED OUR DEPARTMENTS TO TAKE A DEEP LOOK INTO THEIR LINE ITEM BUDGETS, THEIR PROGRAMS, AND ASK THEM TO, UM, MEET A 2.1% TARGET OF SAVINGS. 
          SO HOW THIS WORKED WAS THEY LOOKED AT THEIR EXISTING BUDGET, SO THEIR FY 26 BUDGET, NOT SO MUCH FOR REDUCTIONS IN THIS FISCAL YEAR, BUT THAT WAS THEIR STARTING PLACE OF UNDERSTANDING WHERE THEY MIGHT BE ABLE TO TAKE REDUCTIONS FOR NEXT YEAR AND MAKE PROPOSALS. 
          UM, AND, AND, AND, YOU KNOW, SUBMIT PROPOSALS OF THESE REDUCTIONS, WHICH ARE CURRENTLY UNDER RENE, UNDER REVIEW. 
          AND THE OTHER THING WE ASKED FOR OUR DEPARTMENTS WAS, UM, THAT THEY LOOK AND THINK ABOUT ANY REVENUE INCREASES THAT, UM, MIGHT BE AVAILABLE. 
          AND SO AT THIS TIME, YOU KNOW, THE COMBINED, UH, WE WE'RE SORT OF LOOKING AT THESE BOTH AS PART OF OUR DEPARTMENT BASED, UM, SAVINGS. 
          AND SO WE ARE ANTICIPATING THAT WE'LL FIND BETWEEN SIX AND $7 MILLION IN THE DEPARTMENTAL SAVINGS AND BETWEEN ONE AND $2 MILLION IN, UM, REVENUE INCREASES. 
          NEXT SLIDE PLEASE. 
          SO AGAIN, THAT, THAT, THAT OUR BUDGET TARGET ACTUALLY, UH, OUR BUDGET GROWTH TARGET INCLUDED, UM, OUR ASSUMPTION THAT WE WOULD TRY TO INCORPORATE INTO OUR OPERATING BUDGET, UM, THE $5 MILLION, UM, THAT WE HAD INITIALLY SET ASIDE INTO THE STABILIZATION FUND. 
          NOW AT THIS POINT, WE HAVE ONLY REALLY SPENT, UM, I THINK A MILLION DOLLARS, UM, THAT WAS ALLOCATED TO SUPPORT HOUSING FOR MIXED STATUS, UM, EARLY ON. 
          AND THEN IN THE FALL WE ALSO ALLOCATED 250,000, UM, OF THAT FUNDING TO MITIGATE FOOD INSECURITY DUE TO THE FEDERAL GOVERNMENT SHUTDOWN. 
          SO WE ARE STILL ANTICIPATING THAT WE WILL NEED TO BAKE SOME AMOUNT, UH, INTO OUR OPERATING BUDGET. 
          UM, AND WE ARE, YOU KNOW, WE'RE SORT OF IN SOME WAYS, KIND OF IN THE SAME PLACE THAT WE'VE BEEN IN A LONG TIME 'CAUSE WE DON'T EXACTLY KNOW, UM, YOU KNOW, WHAT WE MAY LOSE IN OUR RE OUR FEDERAL REVENUE, UM, AND WHEN THOSE LOSSES WILL ACTUALLY, UM, BE EFFECTIVE. 
          SO THERE'S JUST, YOU KNOW, CONTINUES TO BE UNCERTAINTY AROUND THE FEDERAL GRANTS. 
          NEXT SLIDE, PLEASE. 
          AND I THINK, YOU KNOW, WE, WE DISCUSSED, I THINK IT WAS, WAS DISCUSSED IN DECEMBER 15TH, UM, THE CITY SHARED AN UPDATE, UM, THESE BEING, UM, SORT OF OUR LARGER FEDERAL GRANTS. 
          UM, IN FY 25 WE RECEIVED ABOUT 21 MILLION. 
          AND WE ANTICIPATE AT THIS POINT THE SAME, YOU KNOW, VERY CLOSE TO THE SAME AMOUNT FOR FY 26. 
          UM, BUT, BUT WE ALSO, YOU KNOW, IDENTIFIED SOME, SOME RISK LEVEL. 
          I THINK WE'VE DISCUSSED A LOT THE COC GRANT, UH, WHICH IS A, UM, 
          [00:25:01]
A GRANT THAT, UM, FUNDS PERMANENT SUPPORTIVE HOUSING AND IT'S AROUND, YOU KNOW, IT'S $6.4 MILLION, UM, AS WELL AS SOME OF OUR OTHER GRANTS. 
          AND SO WE CONTINUE TO KEEP A CLOSE EYE ON THESE, UM, THESE GRANTS. 
          NEXT SLIDE PLEASE. 
          UM, SO WE WANTED TO ALSO, UM, YOU KNOW, SHARE AGAIN THE OVERALL CALENDAR, UM, BECAUSE WE'LL BE WORKING WITH ALL OF YOU OVER THE NEXT FEW MONTHS TO FINALIZE THE FY 27 BUDGET AS WELL AS TO, UM, ONE OF, ONE OF THE THINGS WE'LL BE WORKING ON, UM, IS TO SET PRIORITIES FOR FY 27 AND BEYOND. 
          UM, BUT JUST TO AS A REMINDER, YOU KNOW, OUR, OUR ANNUAL BUDGET CYCLE REALLY IS A 12 MONTH PROCESS. 
          AND I, AND I WILL SAY I THINK THAT THE CITY REALLY HAS A COMPREHENSIVE APPROACH TO OUR BUDGET DEVELOPMENT AND OUR BUDGET MANAGEMENT. 
          AND I THINK THAT'S, THAT'S ONE OF OUR GREAT STRENGTHS. 
          YOU KNOW, AND I THINK, YOU KNOW, AS WE'RE, YOU KNOW, GOING THROUGH THE RATING AGENCY PROCESS, UM, BECAUSE WE WILL BE BONDING, UH, IN MARCH, UH, TO BORROW THE NEXT, UH, AMOUNT OF FUNDING THAT WE NEED FOR PROJECTS. 
          UM, ONE OF THE THINGS THAT, UM, I THINK DOES SET US APART AND IS, IS ONE OF THE REASONS WHY WE HAVE, YOU KNOW, WE DO RECEIVE THAT AAA RATING, IS THAT WE HAVE A VERY STRONG FISCAL MANAGEMENT. 
          AND ONE OF THOSE THINGS REALLY DOES INVOLVE, YOU KNOW, HOW IT IS THAT WE PLAN FOR OUR BUDGET AND HOW WE MANAGE OUR BUDGET AND HOW CAREFULLY WE'RE MONITORING OUR REVENUES AND OUR EXPENDITURES. 
          UM, THE ATTENTION THAT WE PAY TO THINGS LIKE OUR EXCESS LEVY CAPACITY AND OUR FORWARD LOOKING AND PROJECTING OUT A NUMBER OF YEARS SO THAT WE CAN, WE CAN, WE CAN PLAN SO THAT WE HAVE THE OPPORTUNITY TO BE ABLE TO PIVOT, UH, IN TIME TO MAKE SOME OF THOSE CHANGES. 
          AND WE'RE NOT CAUGHT, YOU KNOW, BY SURPRISE. 
          SO IN THE FALL, YOU KNOW, WE STARTED WITH THE CITY COUNCIL AND SCHOOL COMMITTEE JOINT ROUND TABLE, UM, AND, UH, WE ARE NOW CONTINUING THROUGH WITH A NUMBER OF FINANCE COMMITTEE MEETINGS THAT WILL BE HAPPENING. 
          THIS IS THE FIRST ONE OF, OF, OF THIS PARTICULAR COUNCIL. 
          UM, NEXT WEEK WE'LL BE HAVING A FINANCE COMMITTEE MEETING, UM, ON THE CAPITAL BUDGET, UH, I BELIEVE IN THE FINAL WEEK OF FEBRUARY, WE ARE PLANNING TO HAVE A FINANCE COMMITTEE MEETING, UH, ON BUDGET PRIORITIES. 
          UH, THERE WILL BE A FINANCE COMMITTEE MEETING ON THE POLICE BUDGET. 
          UM, AND THOSE THINGS WILL ALL OCCUR, YOU KNOW, AS WE'RE STILL MOVING FORWARD WITH THE CITY BUDGET PLANNING. 
          UM, AND THEN IN APRIL, THE VERY END OF APRIL, THE CITY MANAGER WILL SUBMIT THE BUDGET TO THE CITY COUNCIL, AND IN MAY WE'LL BEGIN WITH OUR COUNCIL BUDGET HEARINGS. 
          AND ULTIMATELY IN EARLY JUNE, THE CITY COUNCIL WILL ADOPT THE BUDGET AND THEN THERE'LL BE A BRIEF HIATUS AND WE'LL COME BACK TOGETHER AGAIN, UH, IN THE EARLY FALL. 
          AND, UM, AFTER THE PROPERTY VALUES HAVE BEEN CERTIFIED BY THE STATE AND THE CITY COUNCIL, WE WILL SET THE TAX RATE, UM, THAT WILL FUND THE FY 27 BUDGET. 
          I THINK THAT IS THE FULL SLIDE DECK. 
          OH, RIGHT HERE. 
          I THINK I ALREADY SORT OF GO AHEAD. 
          THAT'S, THANKS, NAOMI. 
          UM, SO HERE AGAIN IS OUR, UM, UM, OUR SORT OF AN OVERVIEW. 
          OH, AND I, I ACTUALLY, I'M SORRY, DIDN'T MENTION THAT. 
          UM, WE ARE ALSO PLANNING NEW THIS YEAR, UM, BUDGET COMMUNITY ENGAGEMENT MEETINGS, UH, THE FIRST OF WHICH IS GOING TO BE THIS SATURDAY, FEBRUARY 7TH, UH, I THINK AT TWO O'CLOCK AT THE KING OPEN SCHOOL. 
          UM, AND THEN THERE WILL BE ONE, UH, THE FOLLOWING WEDNESDAY, FEBRUARY 11TH, UH, IN THE EVENING AT THE, UM, THE CITYWIDE SENIOR CENTER ACROSS THE STREET. 
          AND WITH THAT, I THINK I AM DONE. 
          THANK YOU. 
          ANY OTHER MEMBER OF THAT TEAM BEFORE WE MOVE ON? THANKS SO MUCH AND THANKS SO MUCH CO-CHAIR ZUBI FOR STEPPING IN WHEN I WAS DELAYED. 
          UM, I WILL JUST MAKE A COUPLE REMARKS IF I MAY, BEFORE WE, UM, WHICH IS JUST CLAR, UH, A CM SPINNER ALREADY WENT OVER THE, UM, SCHEDULE JUST TO REMIND US ALL OF WHAT THE CONTEXT FOR THOSE MEETINGS ARE AND HOW THEY DIFFER THAT THE FIRST TWO MEETINGS, WHICH IS TODAY AND THE NEXT WEEK, THE CAPITAL BUDGET REALLY WILL BE TO SET THE STAGE FOR OUR SPRING 
          [00:30:01]
BUDGET FORMATION FROM THE COUNCIL. 
          SO A LOT OF IT IS ABOUT WHAT'S GOING ON. 
          IT'S NOT REALLY DE DE DELVING INTO THE DETAILS OF SPECIFIC LINE ITEMS. IT DOESN'T MEAN WE CAN'T TALK ABOUT SOME OF THE, THE BROAD BUCKETS, BUT IT'S, IT'S REALLY THAT FOR US TO ALL SET THE STAGE ON THE TWO INCREDIBLY IMPORTANT AND VERY MUCH LINKED BUDGETS, THE OPERATING BUDGET, AND OF COURSE THE CAPITAL BUDGET, WHICH IN MANY WAYS IS SEPARATE. 
          AND YET THE TIE, OF COURSE, IS A FULL 10% OF OUR BUDGET GOES TO DEBT SERVICE ON, ON A RANGE OF CAPITAL PROJECTS, ABOUT A HUNDRED AND WHAT $14 MILLION. 
          AND THE DEPARTMENTS HAVE BEEN WORKING WITH FINANCE AND BUDGET TO PULL TOGETHER THEIR BUDGETS, WHICH WE'LL THEN BE VOTING ON IN ANOTHER FEW MONTHS. 
          IT'S THAT THIRD MEETING THAT WE'RE LOOKING AT THAT IT WILL BE MORE LONG-TERM IN SCOPE. 
          AND WE'LL INCLUDE ALSO COUNCIL PRIORITIES. 
          AND I KNOW, UH, COUNCILLOR ZUBIE AND I WILL BE WORKING TO SEE HOW IS IT THAT WE GATHER INPUT ON THE GOALS FROM THE COUNCIL. 
          IF THOSE OF YOU WHO HAVE BEEN ON THE COUNCIL, REMEMBER WE, WE TRY TO ASSESS THAT BEFORE THE MEETING OR TO GIVE THE ADMINISTRATION, THE CITY STAFF SOME SENSE OF THE VARIOUS PRIORITIES, OFTEN INCLUDING A FORCED RANKING. 
          'CAUSE WE'RE NOT JUST ALLOWED TO SAY, YES, WE WANNA SPEND MORE ON EVERY SINGLE ITEM, WHICH OF COURSE WE WANT TO DO, BUT WE RECOGNIZE THAT WE CAN'T AND ALSO PUT IT IN THE CONTEXT OF WHAT WE'RE ALREADY SPENDING. 
          SO WE MAKE SURE THAT WE UNDERSTAND ALL THAT. 
          IT'S, UM, FOR THOSE OF YOU WHO KNOW, THE, THE BUDGET DISCUSSION WAS JUST ABOUT A YEAR AGO IN FEBRUARY 26TH, UM, 2025 WHEN WE DID THAT IN A, AND IT INCLUDED HOW IT IS THAT WE'RE ALREADY SPENDING ON THE CONSOLIDATED SPENDING AND BY CATEGORIES TO REMIND US ALL. 
          IT SEEMS LIKE, OH MY GOSH, WE HAVE A BILLION DOLLAR BUDGET. 
          AND THEN WHEN YOU SEE THE PIE CHART AND REALIZE, YES, BUT 280 MILLION OF THAT THIS YEAR, LIKELY 293 MILLION NEXT YEAR IS JUST THE SCHOOL DEPARTMENT BUDGET, WHICH WE, THE COUNCIL HAVE NO AUTHORITY OVER IN, IN, IN DETERMINING HOW THAT IS SPENT. 
          BUT WE WILL BE WORKING THROUGH THE COUNCIL PRIORITIES FOR THIS ENTIRE COUNCIL TERM, AND WE HOPE TO INCLUDE SOME FROM OUR TRAINING AND OUR, UH, GOALS MEETING FROM, WAS IT JUST LAST WEEK, I THINK, UM, SO THAT WE CAN MAKE SURE THOSE ARE INCORPORATED. 
          AND IT MAY SEEM A BIT ANACHRONISTIC TO BE LOOKING AT THE FY 27 BUDGET NOW AND THE FY 28 AND BEYOND IN A FEW WEEKS. 
          BUT OUR BUDGET PROCESSES ARE THAT WE REALLY HAVE TO FOCUS ON FY 27. 
          AND YET WE'VE BEEN VERY CLEAR IN MEETING WITH STAFF THAT WE DO HAVE TO THINK AHEAD TO FY 28 AND 29 BECAUSE IF IT LOOKS LIKE THE PATTERNS ARE SOMETHING THAT THOSE YEARS WILL BE DIFFERENT, FOR INSTANCE, THE, UH, NOT THE BEST CASE SCENARIO. 
          WE DON'T WANNA SAY WORST CASE, BUT THE LESS THAN OPTIMISTIC OR STEADY STATE ON THE COMMERCIAL VALUES IN PARTICULAR, GIVEN WHAT WE'RE SEEING IN THE MARKET, UH, WE NEED TO MAKE SURE THAT THOSE ARE INCORPORATED INTO FY 27 NUMBERS. 
          'CAUSE WE DON'T WANNA SEE, OH, WELL NEXT YEAR WILL BE OKAY, BUT THE YEAR AFTER, WE KNOW IT'LL BE A MESS. 
          'CAUSE THAT'S WHEN WE GET INTO SPIKES THAT ARE INCREDIBLY DIFFICULT FOR, FOR PEOPLE TO, TO DEAL WITH. 
          UM, SO WE'RE WORKING, I KNOW WITH, UH, MAYOR SANDI'S OFFICE IS ALSO INVOLVED IN HOW IS IT THAT WE CAN INCORPORATE, UH, INPUT FROM THE COUNCIL ON THE BUDGET GOALS, BOTH ON THE OPERATING SIDE AND ON THE, THE CAPITAL BUDGET SIDE. 
          UM, AND THE FEBRUARY 25TH MEETING, JUST TO REMIND US ALL THAT'S ABOUT THE ARPA, THE FEDERAL GRANT, UM, THE ARPA FUNDING, OR NO, THE, YEAH, THE, UM, BUDGET PRIORITIES, RIGHT? WE HOPE FOR THE WEEK OF THE, THE 25TH JUST TO GET AN UPDATE. 
          THIS IS THE LAST YEAR WHEN THOSE ARPA FUNDS CAN BE SPENT AND THE CITY HAS BEEN WORKING. 
          IT'S BEEN AN INCREDIBLE JOURNEY TO SPEND THAT $88 MILLION AND IT HAS BEEN SPREAD THROUGHOUT THE CITY. 
          IN, IN, I THINK THERE'S MORE THAN A HUNDRED DIFFERENT INITIATIVES, UM, WHO HAVE RECEIVED FUNDING. 
          SO IT'LL BE IMPORTANT FOR US TO UNDERSTAND WHERE WE ARE IN THAT AND TO, AND TO KNOW HOW IT IS THAT MONEY WAS SPENT. 
          SO JUST WITH THAT, I THINK WE DO WHAT WE WERE GONNA DO, UM, PUBLIC COMMENT. 
          [COMMUNICATIONS]
WE HAVE JUST ONE PERSON, SO WE'LL DO THAT NOW AND THEN I'LL OPEN IT UP TO, TO THE COUNCIL AND OR THE STAFF FOR, UH, QUESTIONS. 
          SO THE FIRST PERSON, DO YOU WANNA TAKE IT AWAY, CLERK? OUR SPEAKER IS MINTY HA MINTY. 
          YOU HAVE THREE MINUTES, PLEASE GO AHEAD. 
          I HO HOLD ON. 
          HOLD ON ONE SECOND, PLEASE. 
          WHERE, HOLD ON ONE SECOND. 
          I CAN HEAR YOU AT THE DESK, BUT NO ONE ELSE CAN. 
           CAN I DO SOMETHING OR NO, SHE'S GETTING OKAY. 
          YEP. 
          HOLD ON ONE SECOND PLEASE. 
          DO YOU KNOW WHAT, WHILE WE'RE WAITING, I'LL ALSO MAKE A POINT AND THANK THE, UM, THE STAFF FOR SETTING UP THE BUDGET COMMUNITY ENGAGEMENT MEETINGS, WHICH IS SOMEWHAT SIMILAR TO WHAT, UM, COUNCILOR, UH, PICKETT AND I, WHEN WE WERE FINANCE CO-CHAIRS HAD SET THAT UP AND HAD A COUPLE MEETINGS IN THE COMMUNITY WITH REACHING OUT. 
          WE, WE HOSTED THEM IN DIFFERENT PARTS OF THE CITY, UM, AND ADVERTISED IT THROUGH THE NEIGHBORHOOD GROUPS. 
          [00:35:01]
IT WAS HELPFUL FOR THOSE FOLKS WHO WERE THERE. 
          SO THANKS TO THE FINANCE TEAM FOR WANTING TO ENGAGE THE COMMUNITY MORE, JUST SO PEOPLE KNOW IT'LL PARTLY BE SO THAT THE COMMUNITY ITSELF UNDERSTANDS HOW THE BUDGET HAS WORKED. 
          ALMOST LIKE A PRIMER SIMILAR TO WHAT WE'RE DOING. 
          THAT'S THE GOAL OF THESE MEETINGS THAT WILL BE HAPPENING OVER THE NEXT COUPLE WEEKS. 
          AND IT, AND AGAIN, IT'S SOMETHING EVERYONE IN THE COUNCIL IS INVITED AS WELL AND LET FOLKS KNOW ABOUT IT. 
          'CAUSE THE MORE PEOPLE UNDERSTAND ABOUT HOW THE BUDGET IS FORMED, I THINK THE BETTER FOR THE COMMUNITY. 
          MING TI THINK YOU'RE ON. 
          OKAY. 
          GREAT. 
          HI EVERYBODY. 
          MY NAME IS MING TAI HA. 
          I'M THE, UH, PARTNER OF THE CAMBRIDGE STREET HOSPITALITY GROUP. 
          AND, UH, THAT INCLUDES RESTAURANTS ON CAMBRIDGE STREET, UH, SUCH AS PURITAN COMPANY, PURITAN OYSTER BAR, WELL, THREE RESTAURANTS IN, UH, CAMBRIDGE CROSSING. 
          UM, I'M SORRY, I WASN'T ABLE TO ACTUALLY ATTEND THE SESSION EARLIER, BUSY AS A, UH, RESTAURANT OPERATOR, UH, FOR ALMOST 14 YEARS IN THE CITY. 
          UM, ACTUALLY I OVERHEARD THAT. 
          CAMBRIDGE STREET HOSPITALITY GROUP IS THE LARGEST INDEPENDENT RESTAURANT GROUP IN THE CITY. 
          UM, I'M CALLING IN TO PROTEST, UH, THE RAISING OF TAXES ON RESTAURANTS. 
          I'M VERY SHOCKED, UH, BY THIS DECISION. 
          UM, RESTAURANTS ARE NOT KNOWN FOR THEIR HIGH PROFITABILITY. 
          UH, IT'S A LOT OF, UH, WE PUTTING OUR SOUL AND LIVES INTO THIS BUSINESS TO CREATE COMMUNITY, UH, FOR, FOR THE CITY AND FOR OUR NEIGHBORHOODS. 
          AND TO RAISE TAXES ON RESTAURANTS ABOVE AND BEYOND PUTS PRESSURE ON US DURING THE MOST CHALLENGING TIME. 
          UH, JUST THINK ABOUT, UH, THE RESTAURANTS THAT YOU'VE BEEN VISITING OVER THE PAST TWO WEEKS DURING A SNOWSTORM. 
          NOT VERY MANY. 
          UH, THINK ABOUT ALL THE CHALLENGES WE'RE HAVING WITH MACRO IMPACT. 
          WHEN WE THINK ABOUT THE COMMERCIAL, UH, TENANTS AND VACANCIES AS WELL. 
          THEY ALL HAVE MAJOR IMPACTS ON THE RESTAURANT INDUSTRY, WHICH IS SEEING, UH, TOP LINE PRESSURE AS WELL AS BOTTOM LINE PRESSURE WITH INFLATION OF COST OF GOODS SOLD, UH, CHALLENGES WITH, UH, LANDLORDS AND REAL ESTATE AND RENT. 
          UH, SO THIS WAS REALLY, REALLY, UM, A, UM, A REAL LIKE, SURPRISE THAT OUR CITY DECIDED TO TAKE A POSITION THAT WOULD, UH, RAISE, UH, THE, THE RATES ON, ON BUSINESSES, UH, ABOVE AND SORT OF BEYOND THE OTHER SECTORS, INCLUDING HOSPITALITY AND HOTELS. 
          UM, ONE THING THAT I WANNA CALL OUT IS RESTAURANTS CONTRIBUTE, UH, TO THE, THE CITY IN A LOT OF DIFFERENT WAYS. 
          OBVIOUSLY IN COMMUNITY, I'VE KIND OF SHARED THAT ALREADY, BUT ALSO FINANCIALLY, RIGHT? WE'RE SUBJECT TO THE 75 BASIS POINTS INCREASE ON MEALS TAX. 
          SO SALES TAX IS 6.25, BUT MEALS TAX IS 7%. 
          70 FIVE'S BASIS POINTS FOR EVERY SINGLE DOLLAR THAT GOES THROUGH OUR RESTAURANT. 
          WE ALREADY CONTRIBUTE TO THE CITY. 
          AND IN A SUCCESSFUL WAY WHEN WE SUCCEED, THE CITY SUCCEEDS. 
          SO WHEN THE TAX LIKE REAL ESTATE COMES IN AND SAYS, HEY, WE'RE GONNA JUST TACK THIS ON, IT'S REALLY, REALLY SURPRISING AND SORT OF AGAINST WHAT WE THINK IS ALREADY OUR CONTRIBUTION VERSUS WHAT OUR, OUR OBLIGATION IS ON THE TAX RUN. 
          I'D LOVE FOR THE CITY TO RECONSIDER OR AT LEAST THINK ABOUT DIFFERENTLY ABOUT HANDLING INDEPENDENT BUSINESSES IN THE CITY WHO DON'T HAVE THE RESOURCES LIKE FORTUNE 500 CHAINS WHO HAVE REPRESENTATION IN DIFFERENT PARTS OF THE CITY IN DIFFERENT SQUARES. 
          UH, THANK YOU. 
          IF YOU WANNA REACH OUT TO ME AND TALK TO ME MORE ABOUT THIS TOPIC, I'D LOVE TO, I YIELD MY TIME. 
          THANK YOU, MADAM CHAIR. 
          THAT WAS ALL THAT WERE SIGNED UP. 
          THANK YOU. 
          AND THANKS FOR YOUR COMMENTS. 
          UH, MING TY, IF YOU WANT TO, IF YOU'RE STILL LISTENING, YOU WANNA SEND THOSE IN, IN WRITING, UH, THE, THE COUNCIL WILL CERTAINLY, UH, REVIEW THAT AND APPRECIATE IT. 
          I DID WANNA, BEFORE I, UM, GO TO MY COLLEAGUES TO NOTE AND THANKS AGAIN IN THE APPENDIX, IF PEOPLE HAD A CHANCE TO LOOK AT IT, THERE'S A GLOSSARY OF TERMS RELATED TO THE TAX LEVY AND THERE'S INFORMATION ON WHAT IS A TAX LEVY, WHAT'S THE LEVY LIMIT, WHAT'S THE EXCESS LEVY CAPACITY, WHAT IS PROPOSITION TWO AND A HALF MEAN? SO FOR THOSE WHO ARE, UH, INTERESTED, THERE'S, THERE'S CERTAINLY MORE IN DEPTH AND CERTAINLY WELCOME TO ASK QUESTIONS ABOUT THAT AS WELL. 
          FOR ANYONE ON THE COUNCIL WHO, UH, WHO THINKS THAT WOULD BE USEFUL FOR DISCUSSION HERE. 
          THERE'S, UH, THERE'S AN, AN ILLUSTRATION OF HOW THE PROP TWO AND A HALF LEVEE LIMIT MIGHT AFFECT THE CITY, FOR INSTANCE. 
          I JUST WANT TO POINT THAT OUT, UM, 'CAUSE WE'RE NOT GOING OVER IT DURING THE MEETING UNLESS, UH, COUNSELORS WANT TO HEAR FROM THAT. 
          SO I'LL START, IF ANYONE HAS QUESTIONS OR COMMENTS, I'LL OPEN IT UP TO MY COLLEAGUES. 
          AND IS THERE ANYONE ONLINE? NO ONE. 
          OKAY. 
          UH, MAYOR SIDIKI, THANK YOU THROUGH YOU. 
          I GUESS I'LL OPEN IT UP WITH A QUESTION. 
          UM, HOW DIFFICULT OR NOT DIFFICULT AND WHAT ARE THE, SOME OF THE THEMES, UM, THAT HAVE BEEN COMING UP AS YOU, UM, WORKED WITH THE DEPARTMENTS ON THE VARIOUS 2.1 TARGET SAVINGS? UM, I KNOW LAST TIME WE WERE HERE I BROUGHT UP 
          [00:40:02]
SOME DEPARTMENTS ARE BIGGER THAN OTHERS. 
          HOW, YOU KNOW, HOW HARD HAS IT BEEN, UH, THROUGH YOU, MADAM CO-CHAIR? UH, THANKS FOR THE QUESTION. 
          I THINK IT'S, IT'S REALLY GOOD. 
          UM, SO I, I'LL SAY THAT DEPARTMENTS HAVE BEEN EXTREMELY RESPONSIVE, UM, TO, YOU KNOW, THIS CHALLENGE REALLY, AND, AND HAVE COME UP WITH A RANGE OF THOUGHTS AND IDEAS AND STRATEGIES ON HOW TO MEET TARGETS. 
          AS YOU POINT OUT, SOME DEPARTMENTS ARE LARGER, SMALLER, SO IT IMPACTS THEM IN DIFFERENT WAYS, BUT THERE'S BEEN A VERY, I WOULD SAY, THOUGHTFUL APPROACH. 
          UM, SO YOU HAVE A RANGE OF IDEAS FROM, YOU KNOW, LOOKING AT, YOU KNOW, KIND OF, UH, POSITIONS OR, OR STAFFING, EVEN TEMPORARY STAFFING THAT MAY NOT, YOU MAY NOT NEED AS MUCH, UH, LOOKING AT, YOU KNOW, ARE THERE LEGAL REQUIREMENTS OR THINGS LIKE THAT THAT WE'RE EXCEEDING, UM, MAYBE KNOWINGLY OR UNKNOWINGLY WHERE WE CAN SCALE BACK SOME THINGS. 
          UH, THINGS LIKE DUES AND SUBSCRIPTIONS FOR DIFFERENT TYPES OF SERVICES, MAILINGS AND POSTAGE. 
          YOU KNOW, IF WE ARE DOING THINGS MORE EFFICIENTLY, SOMETIMES THERE'S OPPORTUNITIES FOR SAVINGS. 
          AND SO IT WAS REALLY AN OPPORTUNITY FOR DEPARTMENTS TO LOOK INTERNALLY ON HOW THEY'RE DOING BUSINESS, WHAT THEY'RE DOING, HOW THEY'RE SERVING THE COMMUNITY, HOW THEY'RE RESPONSE, RESPONDING TO CITY COUN, CITY PRIORITIES, POLICIES, LAWS, UM, AND MAKING SURE WE'RE TRYING TO DO IT AS EFFICIENT AS POSSIBLE. 
          UM, AS I SAID, DEPARTMENTS HAVE BEEN VERY RESPONSIVE. 
          UM, THERE'S BEEN A LOT OF COMMUNICATION. 
          UH, WE'RE IN THE PROCESS OF REVIEWING SOME OF THESE IDEAS THAT HAVE COME IN. 
          UM, BUT I'M VERY CONFIDENT THAT WE'LL, WE'LL MEET THE TARGET THROUGH THE DEPARTMENT SAVINGS. 
          THANK YOU. 
          YEAH. 
          I ALMOST WONDER, WAS IT, COULD WE HAVE MAYBE DONE, THE THING IS IT'S THE BEST PRACTICE, RIGHT? YOU MENTIONED THAT WE'RE NOT, IT'S A GOOD PRACTICE, UM, THAT MANY CITIES ACTUALLY HAVING TO DO. 
          UM, BUT YOU KNOW, I WON'T ASK ABOUT KNOW WHY THE OH YEAH. 
          ANYWAY, I, I WAS JUST CURIOUS TO SEE HOW, UM, HOW THAT'S GOING AND HOW YOU WOULD EVALUATE FOR THE FUTURE. 
          BUT I KNOW WE'RE IN, THE SECOND QUESTION I HAD WAS, I KNOW AGAIN, THIS IS KIND OF, IT'S PROBABLY PREMATURE, BUT I WANT, WANTED TO GET YOUR THINKING GIVEN KIND OF WHAT YOU'RE SEEING AND OTHER THINGS. 
          UM, RIGHT NOW THERE'S NO INTENTION TO DO ANY KIND OF HIGH HIRING FREEZE. 
          UM, BUT I THINK IS THAT SOMETHING THAT IN OTHER, MAYBE IN OTHER BUDGET CYCLES, IS THAT SOMETHING THAT YOU ARE ALL THINKING ABOUT AS WE, AS WE LOOK AT THIS THROUGH YOU, UH, CO-CHAIR DOLAN? UM, THAT'S A GREAT QUESTION. 
          I THINK ONE OF THE THINGS THAT WE, WE, WE HAVE BEEN DOING THIS YEAR ALREADY, YOU KNOW, UM, IS WE BEGAN, UH, A VACANCY REVIEW. 
          AND SO THAT JUST TO BE IN A BETTER POSITION, YOU KNOW, IF WE WERE TO, IS THIS ALSO COMING IN AND OUT? NO, WE JUST DIDN'T KNOW IF THE INTERFERENCE WAS FROM ONE OF THESE MICS THAT WERE ON WHEN THEY WERE SUPPOSED TO BE. 
          OKAY. 
          ALRIGHT. 
          OKAY. 
          UM, YEAH, SO, YOU KNOW, DOING, BEGINNING TO DO A VACANCY REVIEW AND, AND, UH, JUST EVEN IN, UM, SO NOT, NOT AN OVERALL HIRING FREEZE, BUT MAYBE MORE SELECTIVE IF THERE WERE SOME POSITIONS THAT WE DIDN'T THINK WE NEEDED TO MOVE FORWARD WITH IMMEDIATELY, UM, POSITIONS THAT WE THOUGHT WE MIGHT WANT TO THINK ABOUT. 
          AGAIN, YOU KNOW, AS WE WERE GOING THROUGH THE BUDGET REVIEW, UM, BECAUSE, YOU KNOW, WE ARE TRYING TO ALSO, AS PART OF OUR BUDGET SAVINGS, WE REALLY DIDN'T FOCUS ON, YOU KNOW, CUTTING, TRYING NOT TO CUT TOO MUCH, YOU KNOW, LIKE IT'S NOT A, YOU KNOW, REDUCTION IN FORCE TYPE OF A, AN APPROACH THAT WE'RE TAKING. 
          UM, SO MOST OF THESE BUDGET SAVINGS, WE WERE ASKING FOR PEOPLE TO BE LOOKING FOR OUR DEPARTMENT TEAMS TO BE LOOKING AT AT WAYS THAT WE COULD BE MORE EFFICIENT, MORE EFFECTIVE. 
          UM, WE WERE BASICALLY ASKING TO ENSURE THAT THINGS WERE SORT OF ALIGNED WITH, WITH STRATEGIC PRIORITIES THAT WE REALLY DID NOT, UH, THAT WE MINIMIZED IMPACT ON COMMUNITY AND COMMUNITY SERVICES. 
          UM, SO I THINK THIS IS SORT OF A BEGINNING OF JUST THIS VACANCY RE REVIEW VERSUS JUST A, A FLAT OUT, YOU KNOW, HIRING FREEZE BECAUSE DIFFERENT, DIFFERENT VACANT POSITIONS HAVE DIFFERENT IMPACTS ON THE ORGANIZATION. 
          THANK YOU FOR SHARING THAT. 
          THOSE ARE MY TWO QUESTIONS I'LL YIELD. 
          THANK YOU MAYOR SIDIKI, THAT REALLY IMPORTANT AND GOOD QUESTIONS. 
          [00:45:01]
OTHER COUNCILORS, NOW, COUNCILOR SUZIE, UH, THANK YOU CHAIR NOLAN. 
          YEAH, I'M AFRAID NOW THAT WE HAVE THE TWO QUESTION RULE, WE ALL WANNA WAIT TILL THE END HOPING THAT OTHERS HAVE ALREADY ASKED OUR QUESTIONS. 
          UM, JUST, JUST SO YOU KNOW, WE CAN ALSO GO AROUND AGAIN WITH TWO MORE QUESTIONS EACH, SO, OKAY. 
          WELL, HERE, HERE'S ONE OF MINE I, I LIKE, I THINK, UH, COUNCILLOR SIDIKI WAS SUGGESTING, I, I, I WONDER IF WE DON'T HAVE TO DO FURTHER CUTS BECAUSE I DON'T SEE, I'VE ACTUALLY COME UP WITH SOME IDEAS FOR OTHER SOURCES OF REVENUE, BUT THEY'RE NOT GONNA BE VERY POPULAR. 
          UM, I GUESS CUTS WON'T BE POPULAR EITHER, WILL THEY? UM, BUT I GUESS ONE OF MY QUESTIONS WAS, UM, I KNOW I WAS JUST LOOKING AT THE EXECUTIVE SUMMARY OF FISCAL YEAR 2026, AND IT SAID THAT, UH, SO THERE WAS A 4% DECREASE OF ASSESSED THE ASSESSED VALUE OF TAXABLE PROPERTY IN FISCAL YEAR 25. 
          UM, A 4% DECREASE FROM THE 25 FISCAL 25 VALUES. 
          UM, DO YOU HAVE ANY, I KNOW YOU DON'T HAVE A CRYSTAL BALL AND YOU CAN'T REALLY COMPLETELY FORESEE THE FUTURE, BUT DO YOU HAVE AN IDEA WHERE WE MIGHT BE IN FISCAL FISCAL 28 AND 27, 28 AND 29, AND I THINK MOST OF US PROBABLY SAW THE ARTICLE IN THE BOSTON GLOBE THIS MORNING ABOUT HOW THERE'S CONCERN ABOUT, UH, THE COST OF THE COURTHOUSE AND WHETHER LEGETT MCCALL WILL NEED TO SELL IT OR GO INTO FORECLOSURE, AND THEY'RE THINKING THAT IT MIGHT BE WORTH HALF OF ITS, UM, ITS, UH, ORIGINAL VALUE OF 380 MILLION. 
          SO WHAT DO YOU, WHAT DO YOU, I GUESS THIS IS A QUESTION, UM, FOR, UH, OUR ASSESSOR, UH, GAIL WILLETT, WHAT ARE YOU SEEING IN YOUR CRYSTAL BALL FOR THE NEXT THREE YEARS WITH PROPERTY VALUES? UH, THANKS, UH, THROUGH YOU MADAM CO-CHAIR. 
          UH, YOU KNOW, LET'S START WITH LEGETT MCCALL'S BUILDING AT THE COURTHOUSE. 
          UH, YOU KNOW, I THINK ONE SALE DOESN'T MAKE A MARKET, AND SO WE'LL SEE WHAT HAPPENS. 
          THE ARTICLE TALKED ABOUT THEM HAVING A POTENTIAL TENANT. 
          THE, UH, BANK HAS SAID, YOU KNOW, IF YOU HAVE RENT COMING IN, THEN WE'RE NOT GONNA THROW YOU OUT. 
          IF YOU HAVE NO RENT COMING IN, THEN WE, WE ARE GONNA TAKE THE BUILDING. 
          UM, BUT YOU KNOW, IT, IT IS ONE BUILDING, SO IT IS NOT GOING TO MAKE THE MARKET, IT IS NOT SOMETHING THAT IS GOING TO OVERLY SWAY THE MARKET. 
          UM, BUT WE'RE ALWAYS WATCHING, WE'RE WATCHING, WE'RE, YOU KNOW, GOING TO SEMINARS. 
          WE'RE MEETING WITH EXPERTS, WE'RE MEETING WITH OUR OUTSIDE APPRAISER, WE'RE READING PUBLICATIONS. 
          UH, I THINK THAT WHAT I WOULD SAY IS WE'RE STILL COLLECTING DATA. 
          WE'RE NOT SURE WHERE WE'RE GONNA END UP FOR FISCAL 27, AND IF I COULD PREDICT OUT TO FISCAL 28 OR FISCAL 29, I WOULDN'T WORK HERE . 
          UM, SO I THINK THAT, THAT WE'RE NOT SURE. 
          I THINK THAT WHAT I CAN SAY IS ALL THE SAME HEADWINDS WE HAD LAST YEAR ARE STILL HERE. 
          EXCESS VACANCY, UH, LACK OF DEMAND FOR SPACE. 
          AND THEN ADDITIONALLY, WHAT WE DO HAVE IS A DECREASE IN NIH FUNDING. 
          WE HAVE A DECREASE IN VENTURE CAPITAL. 
          WE HAVE THAT BUSINESSES ARE HESITANT TO EXPAND AND HIRE NOW. 
          UM, AND ALL OF THIS IS HAPPENING AT THE SAME TIME THAT WE HAVE REGIONALLY AND OVERSUPPLY OF OFFICE AND LAB SPACE THAT STILL HAS TO BE ABSORBED. 
          SO I WOULD SAY IT IS NOT SUNSHINE AND ROSES MOVING FORWARD, BUT, UM, WE ARE BETTER POSITIONED THAN MANY OTHER MUNICIPALITIES BECAUSE WE DID NOT HAVE THE HUGE RUNUP OF BUILDING ALL OF THIS VACANT, NOW VACANT SPACE THAT WAS BUILT ON SPEC, UM, THAT A LOT OF OUR SPACE WAS BUILT FOR CLIENTS AND FOR TENANTS. 
          AND, UH, BEING, HAVING OUR PROXIMITY TO HARVARD AND MIT MEANS THAT WE HAVE THE ABILITY TO HAVE A LOT OF BUSINESSES THAT DO SPIN OUT OF THE UNIVERSITIES THAT WILL BE LOOKING FOR SPACE. 
          AND WHAT WE FOUND IN THE PAST IS GONNA CARRY THROUGH, WHICH IS THESE NEW BUSINESSES WANT TO BE NEAR THEIR ADVISORS. 
          THEY WANNA BE NEAR THE PROFESSORS, THEY WANNA BE NEAR THE UNIVERSITIES. 
          AND THAT HAS A REAL VALUE TO PEOPLE. 
          AND IT'S ALSO THE SERENDIPITY OF HAVING ALL THESE BUSINESSES NEAR EACH OTHER AND PEOPLE RUNNING INTO EACH OTHER AND PEOPLE, YOU KNOW, MEETING AT SCHOOL, MEETING AT RESTAURANTS, UM, AND BOUNCING IDEAS OFF OF EACH OTHER. 
          AND SO THOSE THINGS ABSOLUTELY REMAIN. 
          THANK YOU SO MUCH, AND AGAIN, THROUGH YOU CHAIR NOLAN. 
          UM, YES, I AGREE THAT CAMBRIDGE IS A PLACE BUSINESSES SHOULD LOCATE. 
          THIS IS A FABULOUS PLACE. 
          UM, SO I I HOPE 
          [00:50:01]
THEY'LL STAY AND MORE WILL COME SOON. 
          UM, I ALSO AM, AM REALLY CONCERNED ABOUT, I, I JUST DON'T SEE OUR ADDING 10.7% IN A, IN A BEST CASE SCENARIO SCENARIO TO OUR PROPERTY TAXES IN FISCAL YEAR 28 OR 9.7 IN FISCAL YEAR 29. 
          AND THAT'S THE BEST CASE. 
          I GUESS THE, I KNOW YOU CALL IT THE BASE VALUE CASE, BUT IT'S SORT OF, IT'S A BETTER CASE. 
          AND I KNOW THE PESSIMISTIC VALUE CASE IS 17%, UH, RESIDENTIAL TAXES GOING UP IN FISCAL YEAR 28 AND 11.4% IN 29. 
          I, I'VE TRIED TO EXPLAIN, UM, ACTUALLY I WAS EXPLAINING TO MY NEW AIDE, I KNOW OUR, OUR PROPERTY TAXES ARE LOWER, BUT WE HAVE A LOT OF PEOPLE THAT ARE, THAT BOUGHT THEIR PROPERTIES WHEN THEY WERE STUDENTS AT MIT OR HARVARD OR YEARS AGO, UM, FOR 40 AND $60,000. 
          AND NOW THEIR PROPERTIES ARE WORTH A MILLION. 
          SO THEY ARE PROPERTY RICH AND CASH POOR, AND THEY REALLY DON'T HAVE A LOT OF MONEY. 
          MANY OF THEM DON'T TO PAY HIGHER TAXES. 
          SO I THINK WE HAVE SORT OF A UNIQUE POPULATION, UM, AND I, I THINK THAT'S PROBLEMATIC. 
          SO MY QUESTION IS, UM, SHOULDN'T WE BE REDUCING OUR BUDGET FURTHER? AND IT MIGHT NOT BE ACROSS THE BOARD, BUT IT JUST SEEMS FOR THE LONG TERM, SINCE THIS LOOKS LIKE THIS IS GONNA BE GOING ON FOR YEARS. 
          AND, UM, STAFF, UM, I KNOW OUR BIG COSTS ARE STAFF AND I KNOW WE HAVE EXTRAORDINARY STAFF AND DEDICATED STAFF, BUT, UM, SO MAY MAYBE IT WOULD BE OTHER, YOU'D BE, WE'D BE CUTTING OTHER PLACES, BUT WHAT WOULD, WHAT WOULD YOU RECOMMEND IN TERMS OF OTHER PERCENTAGES IF WE WANTED TO, UM, BE ABLE TO HAVE A BALANCED BUDGET AND, AND NOT RAISE UP OUR RESIDENTIAL TAXES SO DRAMATICALLY OVER THE NEXT COUPLE OF YEARS? SO MY, MY QUESTION IS, UM, WHAT SORT OF A, WHAT SORT OF A PERCENTAGE, UH, OF FURTHER REDUCTION MIGHT YOU RECOMMEND THANK YOU THROUGH YOU CHAIR MC NOLAN, UM, THROUGH YOU CHAIR NOLAN? UH, I THINK THAT'S THE RIGHT QUESTION WE SHOULD CONTINUALLY BE HAVING AND THE, UH, THE PROCESS THAT I THINK WE WANNA HAVE WITH THE CITY COUNCIL WHERE WE ARE REGULARLY LOOKING AT ECONOMIC TRENDS AND BOTH SETTING TARGETS AND REFINING THOSE. 
          UM, I THINK COUNCIL ZU ZUI, THAT'S, THAT'S WHAT WE INTEND ON. 
          UM, I THINK FOR FY 27, UH, WHERE WE'VE LANDED IS, UM, A 7% PROPERTY TAX LEVY TARGET AND A LITTLE UNDER A 5% OPERATING BUDGET TARGET. 
          UM, OBVIOUSLY, YOU KNOW, WHERE THAT EXACTLY LANDS, UH, WILL DEPEND ON SOME OTHER FACTORS. 
          UM, THERE'S A LOT OF DIFFERENT PIECES, SOME OF WHICH WE CONTROL AND SOME OF WHICH WE DON'T. 
          UM, AS YOU'RE LOOKING FORWARD TO FY 28 AND 29, UM, I THINK THAT IS THE CONVERSATION AND CERTAINLY WOULD BE OPEN TO DISCUSSION AND THOUGHTS FROM THE COUNCIL AS A BODY. 
          UM, I THINK WHAT WE ARE LOOKING AT IN TERMS OF THAT BASE CASE, UH, WE ARE LOOKING AT A PLAN THAT IS PROJECTING A HIGHER LEVY INCREASE FOR 28 AND 29. 
          UM, WE ARE TRYING TO FIND A BALANCE IN TERMS OF THE COUNCIL'S DESIRES ULTIMATELY TO HAVE SPACE TO BOTH MAINTAIN AND GROW DIFFERENT PROGRAMS AND INVESTMENTS THAT WE'RE MAKING, UM, WHILE ALSO, UH, UNDERSTANDING THAT WE WANT TAXES TO BE RELATIVELY STABLE. 
          I MEAN, THIS IS ACTUALLY A, A HIGHER RATE OF TAX GROWTH IN 28 29, AS YOU'RE NOTING THAN WHAT WE'VE SEEN IN THE PAST. 
          UM, BUT UM, BUT I THINK WE'RE OPEN TO THOSE CONVERSATIONS. 
          UM, I WOULD SAY, YOU KNOW, PART OF THE MULTI-YEAR PICTURE IS IMPORTANT SO THAT WE CAN, UH, BOTH UNDERSTAND THE TRENDS THAT WE'RE LOOKING AT. 
          AND ULTIMATELY, UM, IT HELPS US SET FY 20 SEVEN'S BUDGET, YOU KNOW, WHAT WE'RE DOING IN ONE YEAR DOES AFFECT WHAT THIS LOOKS LIKE IN COMING YEARS. 
          UM, AND, UH, AND SO, UH, WE DON'T HAVE TO MAKE EXACT DECISIONS ABOUT 28 AND 29. 
          UM, IT'S PART OF THIS BUDGET CYCLE. 
          UM, BUT I DO THINK THIS BROADER DIRECTION FROM THE COUNCIL IN TERMS OF HOW WE WANNA BALANCE, UM, THE GROWTH OF THE CITY'S BUDGET, THE WAYS THAT WE CAN MAKE NEW INVESTMENTS, UM, AND THEN THE PRESSURE THAT WE WANT TO CREATE TO BOTH FINE SAVINGS, REVIEW EXISTING PROGRAMS, UM, AND, AND THINK ABOUT TARGETS FOR OUR TAX RATE GROWTH. 
          I THINK THAT'S ALL STUFF THAT WE'RE VERY OPEN TO DISCUSSING, AND I THINK IS IT, IT WORKS WELL IN THIS FORUM. 
          UM, THIS IS PROBABLY THE BEST FORUM TO BE HAVING THIS CONVERSATION, UH, AGAIN WITH THIS NEW COUNCIL. 
          UM, THAT'S WHY WE WANTED TO HAVE IT TODAY, UM, BUT TO, TO BE REVIEWING THE CONVERSATION ABOUT THE TAX RATE SETTING AND THE, AND THE TARGETS THAT WE'RE PUTTING FORWARD. 
          [00:55:01]
UM, BUT, YOU KNOW, WE WILL ALSO BE HAVING THIS CONVERSATION AFTER WE GET THROUGH THE FY 27 BUDGET IN THE FALL AS WE PREPARE FOR FY 28. 
          I JUST, IF YOU DON'T MIND, UH, THROUGH YOU, I THINK I'D JUST ADD TO THAT, I MEAN, I, I THINK THAT, THAT THE MODEL WE'VE SET UP HERE IS SORT OF THIS ITERATIVE PROCESS. 
          YOU KNOW, WE'VE SET TARGETS FOR FIVE YEARS AND WE'VE ALSO ASTERISK TO SAY THAT, YOU KNOW, WE'LL BE LOOKING AT THOSE TARGETS EACH YEAR. 
          AND SO WE'VE, WE'VE, YOU KNOW, MODELED THE TARGET OF, YOU KNOW, OUR OVERALL TAX LEVY INCREASING BY 7% OUT THE NEXT FIVE YEARS. 
          WE'VE LOOKED AT THAT AND WE'VE SEEN THAT. 
          WE THINK THAT WE CAN ABSORB THAT AND, AND MAINTAIN WHAT WE CONSIDER TO BE, UH, YOU KNOW, AN AMOUNT OF, OF, UH, EXCESS LEVEE CAPACITY WHERE WE WILL STILL FEEL COMFORTABLE. 
          WE ARE GOING TO HAVE A DECLINE IN EXCESS LEVEE CAPACITY OVER THAT TIME. 
          AND YET WE FEEL THAT BECAUSE OF THE TIMES WE ARE GONNA HAVE TO SORT OF DIG INTO OUR EXCESS LEVEE CAPACITY WITH, TO AVOID HAVING ANY KIND OF REALLY DRAMATIC DECREASES. 
          THAT SAID, YOU KNOW, IF, YOU KNOW, AS OUR MODELING SHOWS THAT OUR WE'LL BE SHIFTING TAXES FROM COMMERCIAL BACK TO RESIDENTIAL, AND THE RESIDENTIAL SECTOR WILL BE FEELING THAT THAT LEVY INCREASE MORE, THEN I THINK WE WILL BE COMING BACK TO THE TABLE AND ADVISING THAT WE DO TAKE SOME HARDER LOOKS AT OUR BUDGET AND, AND, AND PROBABLY MORE DIFFICULT CHOICES ABOUT REDUCTIONS. 
          UM, AND WE'LL HAVE TO WEIGH, YOU KNOW, THOSE REDUCTIONS AND THE IMPACTS OF THOSE REDUCTIONS, YOU KNOW, IN TANDEM WITH LOOKING AT THE IMPACT OF THE, THE TAX INCREASES ON RESIDENTIAL. 
          AND I THINK AS THE CITY MANAGER SAID, THAT'S JUST A JOINT CONVERSATION BETWEEN ALL OF US, YOU KNOW, ELECTED OFFICIALS, CITY ADMINISTRATION, TO SORT OF STRIKE THE RIGHT BALANCE BETWEEN OUR, OUR PROPERTY, OUR LEVY, OUR PROPERTY TAX LEVY INCREASES, AND HOW WE WANT TO, UM, GROW OUR BUDGET OR SHRINK OUR BUDGET. 
          UH, THOSE WERE MY TWO QUESTIONS. 
          THANK YOU. 
          I YIELD, AND I DIDN'T MEAN TO NEGLECT, UH, THE CONCERNS LIKE MING'S CONCERNS BECAUSE I, I DO THINK WE ALSO, IF WE WANNA HAVE A VIBRANT CITY, WE'VE GOTTA HAVE, UM, RESTAURANTS AND HOTELS AND DYNAMIC BUSINESSES. 
          THANK YOU. 
          THANK YOU. 
          COUNCILOR MCGOVERN, DID YOU WANNA GO NEXT? UM, THANK YOU, MADAM CHAIR THROUGH YOU. 
          NOT, NOT SPECIFICALLY. 
          I JUST, I, I DO WANT TO THANK YOU FOR THE WORK AND IT IS, UM, IT IS PRETTY SOBERING IN TERMS OF, YOU KNOW, THE, THE OUTLOOK. 
          IT'S NOT ONE THAT WE'RE USED TO SEEING HERE. 
          AND I THINK THERE ARE GONNA BE SOME CHALLENGING CONVERSATIONS AND DECISIONS, UH, COMING DOWN THE ROAD, UM, AS YOU, UH, I THINK IT'S GREAT THAT YOU'RE DOING THESE COMMUNITY MEETINGS. 
          I THINK WE'RE GONNA NEED TO DO, UM, MORE OF THOSE. 
          UM, AND, AND CERTAINLY GIVING PEOPLE A HEADS UP OF, YOU KNOW, YOU DON'T WANT TO PUT PEOPLE INTO A PANIC BECAUSE THE TRUTH IS WE DON'T REALLY, WE CAN'T REALLY PREDICT TWO OR THREE YEARS OUT. 
          BUT I DO THINK SOME, YOU KNOW, MAKING SURE WE ARE TELLING PEOPLE THAT, YOU KNOW, TWO OR THREE YEARS FROM NOW, IT COULD EVEN BE WORSE THAN, THAN WHAT IT IS TODAY SO THAT PEOPLE CAN PREPARE. 
          UM, I GUESS A, A QUESTION, UH, JUST PROCEDURAL QUESTION OR, OR, UM, ARE, ARE WE, IS, IS THIS PRESENTATION AND THIS INFORMATION BEING SHARED ALSO WITH THE SCHOOL COMMITTEE, GIVEN WHAT THEY'RE GOING THROUGH AND THEIR BUDGET, AND OBVIOUSLY THIS IS GONNA HAVE A HUGE IMPACT ON, ON THEM. 
          SO ARE THEY SEEING THESE NUMBERS AS WELL THROUGH, THROUGH YOU CO-CHAIR NOLAN? UH, A COUPLE OF WEEKS AGO, THE CITY MANAGER AND I, UM, UH, ATTENDED, UM, A, A SCHOOL COMMITTEE MEETING. 
          UM, THEY, UH, HAD ASKED THAT WE COME BACK ONCE THE NEW COUNCIL OR THE NEW COMMITTEE WAS SEATED, AND WE, UM, JUST SORT OF PULLED SOME SELECT SLIDES FROM, UM, OUR PRESENTATION FROM NOVEMBER 10TH, WHICH IS REALLY A LOT OF WHAT THE, UH, THE, THE PRESENTATION TODAY WAS. 
          UM, AND WE, YOU KNOW, WENT OVER THAT INFORMATION AGAIN, AND THEN WE WERE PROBABLY THERE FOR AN HOUR ASKING THEIR QUESTION, UH, ANSWERING THEIR QUESTION. 
          SO I, I FEEL LIKE THEY'RE, THEY'RE PRETTY, UH, IN TUNE WITH, YOU KNOW, THE, THE CITY'S SITUATION, OUR EXPECTATION, YOU KNOW, THAT THEY NEED TO, YOU KNOW, SORT OF DELIVER THEIR BUDGET, UM, AND NOT REALLY BE REQUESTING ADDITIONAL FUNDS. 
          OKAY. 
          THANK YOU. 
          AND THEN LASTLY, UM, MADAM CHAIR THROUGH YOU, UM, COUNCILOR NOLAN BROUGHT UP, UM, THE APPENDIX AND THE PROP TWO AND A HALF, AND I THINK THOSE ARE REALLY GOOD SLIDES TO PUT IN, AND I THINK PEOPLE REALLY NEED TO TAKE A LOOK AT THOSE. 
          'CAUSE WE HEAR ALL THE TIME, OH, YOU KNOW, WE HAVE THE LOWEST, YOU KNOW, PROPERTY TAXES, WE COULD JUST RAISE 
          [01:00:01]
IT. 
          AND I DON'T THINK PEOPLE FULLY, WE DON'T, WE DO NOT WANT TO GET TO THAT TWO POINT A HALF PERCENT LEVY AND HAVE TO DEAL WITH OVERRIDES AND, AND THINGS THAT THAT IS NOT A PLACE WE WANT TO BE. 
          AND SO, UM, I THINK AS MUCH AS WE CAN EXPLAIN THAT TO PEOPLE AND CLEARLY IS POSSIBLE, IT'S, YOU KNOW, IF THIS ISN'T YOUR, YOU KNOW, I'M SURE FOR COUNSELOR NOLAN BREATHES THIS IN THIS STUFF, I THINK FOR SOME OF US IT'S, IT'S, YOU KNOW, IT'S MAYBE A LITTLE MORE COMPLICATED, BUT, UM, I DO THINK AS, AS, AS MUCH AS WE CAN, YOU KNOW, EDUCATE PEOPLE ON, YOU KNOW, WHAT THAT WOULD MEAN, UM, BECAUSE THAT, I DON'T THINK THAT'S A PLACE THAT WE WANT TO BE. 
          AND I THINK YOU DO A PRETTY GOOD JOB EXPLAINING IT IN THIS APPENDIX, BUT HIGHLIGHT THAT IN YOUR, IN YOUR COMMUNITY MEETINGS AS WELL, I THINK WOULD BE IMPORTANT FOR PEOPLE TO UNDERSTAND. 
          THANK YOU. 
          THANK YOU MADAM CHAIR. 
          THANKS. 
          AND I WILL SAY COUNCILMAN MCGOVERN, I HOPE THOSE YEARS AND LOTS OF MONEY SPENDING GRADUATE SCHOOL MAKES IT SO THAT I CAN UNDERSTAND THIS  AND MAYBE IT WAS WORTH IT, WHICH MY PARENTS WERE NOT ALWAYS SURE OF. 
          UM, YES, THE SCHOOL DEPARTMENT, I'M NOT SURE IF MAYOR SIDIKI WANTS TO WEIGH IN, ARE BEING ASKED TO DO EXACTLY WHAT OTHER DEPARTMENTS ARE, AND I THINK THAT'S IMPORTANT, UM, EQUITY ACROSS THE CITY TO MAKE SURE THEIR BUDGET'S ACTUALLY GOING UP SIGNIFICANTLY COMPARED TO MANY OTHER DISTRICTS. 
          AND YET WITH COLA AND MANY OTHER INCREASES, JUST LIKE THE CITY, OUR BUDGET'S GOING UP AND YET WE STILL HAVE TO FIND, UH, SAVINGS FOR MANY OF THE DEPARTMENTS AND ONLINE DID OR COUNCILOR SIMMONS, DID YOU HAVE ANY QUESTIONS THROUGH THE CHAIR OF THE CITY MANAGER? UH, THERE'S A COUPLE OF THINGS. 
          I'M GLAD WE'RE CONTINUING HAVING THIS CONVERSATION EARLY AND IN A ROBUST MANNER. 
          I WANTED TO FOLLOW UP ON A FEW THINGS. 
          WELL, LET ME JUST ACKNOWLEDGE. 
          ONE OF THE THINGS THAT THE COUNCIL DID, UH, IN TANDEM WITH THE CITY MANAGER IN THE BUDGET OFFICE WAS, HAD THOSE CONVERSATIONS, UH, LATE IN THE LATTER PART OF THE YEAR, PARTICULARLY WITH THE SCHOOL COMMITTEE, TO HAVE TO KIND OF BRING EVERY TRY TO BRING PEOPLE ON ONTO THE SAME PAGE KNOWING THAT WE WERE GONNA BE FACING BUDGET CUTS. 
          BUT I, I STILL WORRY. 
          AND I'M JUST INTERESTED IN KNOWING, YOU SAID YOU HAD A CONVERSATION WITH THE SCHOOL COMMITTEE TO TALK DIRECTLY TO THE UNIONS AT ALL, BECAUSE IT'S, I'M, I'M NOT ALWAYS SURE. 
          I MEAN, THERE'S THE SCHOOL COMMITTEE AND THEN THERE'S THE UNIONS, AND I KNOW THEY'RE BUDGETING, UH, THEY'RE TALKING ABOUT, UM, UNION NEGOTIATIONS AND CONTRACT SETTLEMENTS. 
          AND I'M JUST CURIOUS, UM, HAVE YOU TALKED TO THEM DIRECTLY? DO YOU NEED TO TALK TO THEM DIRECTLY? IS IT A BENEFIT TO TALK TO THEM DIRECTLY? BECAUSE IT SEEMS SOMETIMES OF SOME THINGS THAT I'VE HEARD OR WITNESSED PERSONALLY THAT THEY'RE NOT NECESSARILY ON THE SAME PAGE. 
          AND I HAVE HEARD MORE THAN ON MORE THAN ONE OCCASION OF THIS THING ABOUT WE CAN GO TO FREE CASH, WHICH, YOU KNOW, I THINK IS A BAD WORD. 
          I WANNA PUT IT IN THE BUDGET BOOK. 
          IT'S SAYING PROFANITY FREE CASH. 
          I MEAN, IT'S THE UNEXPECTED FUND BALANCE, BUT SOME FOLKS BELIEVE THAT IF THERE'S NOT ENOUGH MONEY, WE CAN ALWAYS GO THERE. 
          SO IF YOU COULD SPEAK TO THAT A LITTLE BIT, THAT WOULD BE HELPFUL FOR ME. 
          THAT'S QUESTION NUMBER ONE. 
          THE SECOND QUESTION WAS, I'M PLEASED TO SEE THAT WE'RE GOING BACK TO SOMETHING WE USED TO DO A LONG TIME AGO, WHICH IS TAKE THE BUDGET CONVERSATION TO THE COMMUNITY. 
          THE QUESTION, THE SECOND QUESTION, PART A AND B IS, ARE THERE GOING TO BE INTERPRETERS? AND IS THE CHILDCARE GOING TO BE PROVIDED FOR SOME OF THOSE SESSIONS, UH, THROUGH YOU CHAIR NOLAN? UM, MAYBE I'LL DEFER THE COMMUNITY MEETING. 
          UH, QUESTIONS TO BUDGET DIRECTOR JENNINGS. 
          UH, BUT JUST TO YOUR FIRST QUESTION ABOUT THE SCHOOL, UH, CONVERSATIONS, UH, I THINK THE CONVERSATION WITH THE SCHOOL COMMITTEE WAS, WAS REALLY HEALTHY. 
          UM, AND I THINK VERY ENGAGED IN TERMS OF THE CONTENT, UM, APPRECIATED THE, THE CONVERSATION. 
          UM, IT HAS FELT LIKE CERTAINLY AT THIS STAGE, EARLY ON IN THE NEGOTIATION, THE UNION, THE SCHOOL COMMITTEE, THE SCHOOL ADMINISTRATION ARE, UM, ALIGNING IN TERMS OF WANTING IT TO BE A COLLABORATIVE PROCESS, UM, AND UNDERSTANDING THAT, UM, THAT EVERYBODY HAS AN INTEREST IN GETTING TO A FAIR CONTRACT AND, UH, AND HOPEFULLY, UH, DOING SO QUICKLY. 
          UM, I DO HAVE A SENSE THAT THE CONVERSATION ABOUT FREE CASH HAS MAYBE TONED DOWN A LITTLE BIT. 
          I CAN'T GUARANTEE THAT, BUT WE HAVE CONTINUED TO, AS YOU'RE NOTING COUNCILOR SIMMONS TALK ABOUT HOW FREE CASH IS MORE OF A BALANCE, AND IT'S FOR ONE TIME EXPENDITURES. 
          UH, NOT REALLY SOMETHING THAT YOU DI WOULD DIP INTO FOR LONG-TERM OPERATING EXPENSES, UM, LIKE A UNION CONTRACT. 
          UH, WE DO SPEAK A LITTLE BIT LESS DIRECTLY IN TERMS OF THE CITY ADMINISTRATION WITH THE TEACHER'S UNION. 
          THAT'S REALLY IN THE, THE SCHOOL AND THE SCHOOL COMMITTEES, UH, REALM. 
          BUT WE DO CERTAINLY HAVE A LOT OF CONVERSATIONS WITH MANY OF THE UNIONS THAT, UM, THAT WE'RE WORKING WITH. 
          AND I KNOW WE'VE GOT A NUMBER OF, UM, DISCUSSIONS THAT I THINK CONTINUE AND MAYBE I'LL DEFER TO, UH, BUDGET DIRECTOR JENNINGS ON THE COMMUNITY MEETINGS, WHICH WE ARE ALSO VERY 
          [01:05:01]
EXCITED TO DO, UH, THIS YEAR. 
          YEP. 
          THROUGH YOU MADAM, UH, CO-CHAIR. 
          UM, SO IN TERMS OF, UH, TRANSLATION SERVICES, UH, NOT NECESSARILY FORMALLY SET UP AT THE MEETING, BUT ON OUR FLYER AND IN OUR INFORMATION OUT, WE DO, YOU KNOW, POINT FOLKS IN THE DIRECTION, UH, IF THEY NEED TRANSLATION ASSISTANCE, UM, AND CHILDCARE. 
          THERE ARE NO PLANS TO PROVIDE FORMAL CHILDCARE AT THE MEETING. 
          UM, WE DID TRY TO LOOK AT STAGGERING THE TIMES SO THAT, YOU KNOW, IF SOMEONE CAN'T MAKE IT ON A WEDNESDAY EVENING, THEY CAN COME ON A SATURDAY. 
          FAMILIES AND CHILDREN ARE CERTAINLY WELCOME, UH, TO BOTH EVENTS. 
          UM, AND I, I WOULD JUST SAY THAT THIS IS, YOU KNOW, WE'VE GOT A LOT OF GOOD FEEDBACK FROM COUNCIL ABOUT, YOU KNOW, THE NEED TO DO THIS KIND OF THING. 
          AND WE EXCITED ABOUT IT. 
          IT'S A WORK IN PROGRESS WHERE WE WANNA LEARN FROM HOW THIS GOES AND BUILD ON IT AND CONTINUE TO IMPROVE IT. 
          UM, BUT, UH, RIGHT NOW WE, WE THINK, YOU KNOW, WE'RE, WE'RE DOING ALL THAT WE CAN TO GET THE OUTREACH OUT THERE AND, AND WORKING WITH THE OUTREACH TEAM AND COMMUNICATIONS TEAM IN THE CITY, UM, TO REALLY GET THE WORD OUT ABOUT THIS AND, AND GIVE PEOPLE AN OPPORTUNITY TO LEARN ABOUT THE BUDGET AND ENGAGE WITH STAFF. 
          UH, THANK YOU DIRECTOR, UH, JENNINGS THROUGH THE CHAIR. 
          JUST QUICKLY, DO YOU EVER THINK ABOUT PIGGYBACK ON A MEETING THAT'S ALREADY HAPPENING INSTEAD OF JUST HAVING, INSTEAD OF US HAVING SPONSORING THE MEETING, THERE'S A MEETING HAPPENING AND YOU COME TO THAT MEETING, UH, THROUGH YOU, MADAM CHAIR? I THINK THAT'S ALWAYS IDEAL WHEN THERE'S OPPORTUNITIES TO DO THAT. 
          THIS FELT LIKE A FAIRLY SPECIFIC TOPIC THAT WE WANTED TO BE ABLE TO FOCUS ON THIS ISSUE AND, AND, YOU KNOW, REALLY MAKE SURE PEOPLE UNDERSTOOD THIS WAS ABOUT, UM, ENGAGING AND HOW TO ENGAGE ON THE BUDGET, UNDERSTANDING WHAT THE BUDGET IS. 
          BUT ANYTIME THERE'S AN OPPORTUNITY TO PIGGYBACK ON ANOTHER MEETING, I THINK THAT'S ALWAYS IDEAL FOR ANY TOPIC, REALLY. 
          THANK YOU. 
          I YIELD THANK YOU. 
          I'LL, I HAVE, I'LL ASK MY TWO QUESTIONS AND THEN I'LL GO AROUND AGAIN. 
          UM, SO I WANNA, UM, ECHO THE SENTIMENTS EXPRESSED THAT WE DO NEED TO BE AWARE OF AND ACT TO ENSURE THAT WE ARE POSITIONED WELL AS COUNCIL MCGOVERN SAID, TO BE FISCALLY RESPONSIBLE. 
          I DON'T, I THINK, AND I THINK WE CAN DO THAT, AND WE ARE POSITIONING OURSELVES VERY WELL TO DO THAT, TO NOT NEED IT AN OVERRIDE, AS, AS HE NOTED, WE ARE IN A DIFFERENT TIME. 
          WE NEED A DIFFERENT APPROACH. 
          AND IN THE PAST, FRANKLY, WE SPENT NOT QUITE, WITHOUT REGARD TO COST, BUT KIND OF BECAUSE WE COULD, WE HAD MONEY LITERALLY FLOWING IN. 
          WE'VE TALKED ABOUT THAT. 
          I WANNA NOTE NOT ON THE OPERATING BUDGET. 
          THAT WAS TRUE. 
          I THINK WE COULD JUST ADD STAFF OR CONSULTANTS AND CERTAINLY ON THE CAPITAL BUDGET. 
          AND OFTEN, SO HERE'S THE QUESTION IS OFTEN WE DID BASICALLY PLATINUM LEVEL WORK, RIGHT? WE SAW IT IN THE TOBIN DERBY VESSEL. 
          IT'S A FANTASTIC BUILDING. 
          THE HALF A BILLION DOLLARS WE HAVE SPENT OVER THE YEARS, IT JUST CONTINUES TO ACCELERATE AND IT WASN'T SOMETHING WE REALLY NEED TO THINK ABOUT. 
          I THINK IN RETROSPECT, MOST OF US WOULD AGREE THAT WE COULD HAVE, AND PERHAPS SHOULD HAVE THOUGHT ABOUT A SOMEWHAT DIFFERENT WAY TO APPROACH THOSE BUILDING PROJECTS, WHETHER IT'S THE FIRE STATION OR THE SCHOOLS. 
          AND I THINK IT'S THE SAME IN OPERATING BUDGET AS, AS MAYOR SIDIKI NOTED, THERE MAY BE A TIME WHEN IF WE, OUR, OUR STAFF ARE OBVIOUSLY DOING GOOD WORK, BUT IF IT'S NOT REALLY NECESSARY, YOU KNOW, SOMETIMES, AS I SAY, INSTEAD OF PLATINUM, YOU KNOW, MAYBE GOLD OR SILVER, EVEN BRONZE IS OKAY, AS LONG AS IT'S ADEQUATE. 
          SO ARE THOSE CONVERSATIONS HAPPENING BOTH ON THE OPERATING SIDE AND ON THE CAPITAL BUDGET SIDE? I KNOW WE'RE HAVING THE CAPITAL BUDGET NEXT WEEK, SO MAYBE WE COULD TALK ABOUT, YOU KNOW, THE OPERATING SIDE. 
          WE'RE COMMITTED TO PROVIDING STELLAR LEVEL OF SERVICE. 
          WE SAW JUST YESTERDAY THAT OUR RESIDENT SURVEY SHOWS THAT WE'RE ACCOMPLISHING THAT AND YET THAT, YOU KNOW, WE, WE, WE CAN HAVE ICING ON THE CAKE, BUT MAYBE IT DOESN'T NEED TO HAVE A DOLLOP OF WHIPPED CREAM AND ORGANIC BLUEBERRY IN EVERY KIND OF FREE RANGE FRUIT THAT YOU COULD IMAGINE ON TOP, UH, THROUGH YOUR TURN, NOLAN. 
          UM, AND I THINK, UH, MAYBE I'LL DEFER TO, UH, ASSISTANT CITY MANAGER, SPINNER, UH, OR BUDGET DIRECTOR JENNINGS, TO MAYBE GIVE A COUPLE OF EXAMPLES THAT HAVE COME UP. 
          UM, I MEAN, WE'RE STILL IN THE MIDDLE OF THE PROCESS, AND SO, UM, BUT I THINK WE HAVE REALLY PUSHED ACROSS DEPARTMENTS TO BOTH CONSIDER, UH, HOW WE'RE CURRENTLY WORKING AND HOW WE MIGHT, UH, SHIFT THAT SIMILAR TO HOW YOU'RE ARTICULATING IT. 
          UM, AND I WOULD, I WOULD NOTE, I THINK THIS IS GONNA BE A SHARED CONVERSATION WITH THE CITY COUNCIL, UH, FOR SURE. 
          YOU KNOW, I HAVE FELT CERTAINLY, UM, SOME SHIFT ALREADY, UH, FROM WHEN I STARTED. 
          AND I THINK IT REALLY WAS BOTH WITHIN THE CITY AND IN THE INTERACTIONS WITH THE CITY COUNCIL. 
          OUR DESIRE WAS TO DO EVERYTHING WE POSSIBLY COULD. 
          [01:10:01]
AND SO IT, ALL OF OUR DECISIONS, WE WERE WILLING TO PUSH AND PUSH, AND I THINK WE DID HAVE THE RESOURCES WHERE IT FELT LIKE WE COULD DO ALL OF THOSE THINGS. 
          UM, AND I THINK IT'S NOT THAT WE CAN'T STILL BE AMBITIOUS, UM, I THINK WE JUST HAVE TO BE PRIORITIZED. 
          AND I THINK A LOT OF WHAT WE'RE TRYING TO DO IS SAY THERE'S A GOAL THAT WE WANT TO ACCOMPLISH. 
          UH, THERE ARE MANY WAYS TO ACCOMPLISH IT. 
          UM, HOW DO WE MAKE SOME OF THOSE TRADE-OFFS, UH, AND BE A LITTLE MORE PRIORITIZED ABOUT WHERE WE DO FEEL LIKE WE NEED TO SPEND MONEY AND WHERE WE SHOULD FIND SOME SAVINGS, UH, MODERATE, A LITTLE BIT, UH, AND STILL DELIVER EXCELLENT RESULTS FOR OUR COMMUNITY. 
          DO YOU WANNA GO, DID YOU WANNA ADD BUDGET? UM, MADAME CO-CHAIR. 
          I, I, THAT'S ABSOLUTELY TRUE. 
          I THINK IT'S, YOU KNOW, THAT TYPE OF CONVERSATION IS INEVITABLE IN THIS KIND OF EXERCISE. 
          UM, WE DO WANNA TAKE A CAREFUL APPROACH AND KEEP IN MIND, YOU KNOW, EQUITY ISSUES, CITY POLICIES, IMPACT ON THE COMMUNITY. 
          UM, BUT I THINK TO YOUR POINT, THERE ARE SITUATIONS WHERE THERE MIGHT BE A WAY TO DO SOMETHING MORE EFFICIENTLY OR JUST EVEN DIFFERENTLY THAT MEETS THE GOALS, MEETS OUR POLICIES, UM, STILL MAKES CAMBRIDGE AS SPECIAL AS IT IS. 
          UM, AND WE CAN FIND WAYS TO DO IT LESS EXPENSIVE. 
          YEAH, THANKS. 
          I MEAN, WE'RE, WE'RE NOT SAYING WE WOULDN'T DELIVER, BUT AGAIN, YOU CAN OFTEN DELIVER. 
          AND WHAT I ALWAYS THINK OF IS THE OPPORTUNITY COST. 
          IF WE HAD SAVED 50 TO $70 MILLION ON THE TOBIN DERBY VASSAL, WE COULD THEN SPEND THAT ON THEIR SCHOOLS ACROSS THE CITY THAT ACTUALLY NEED UPDATING AS WELL. 
          SO IT, IT'S NOT THAT WE WOULDN'T EVEN SPEND IT, IT'S JUST THAT, AND IT COULD HAVE BEEN A TOTALLY ADEQUATE SCHOOL GIVEN WHAT WE KNOW ABOUT THE WATERTOWN SCHOOL ON THAT. 
          MY OTHER, UM, JUST CLARITY ON QUESTION, I DON'T WANNA PICK UP ON PART OF WHAT WAS SAID WITH ASSESSMENT. 
          UM, WHEN A PROPERTY SELLS, THAT PRICE AUTOMATICALLY BECOMES THE ASSESSED VALUE. 
          SO I JUST WANNA CONFIRM THAT EVEN THOUGH IT'S A YEAR LATER AND IT HAS TO BE A, UM, ARM LENGTH TRANSACTION SALE, BUT GIVEN THOSE TWO THAT IT'S FOR THE NEXT YEAR AND AN ARM'S LENGTH TRANSACTION THAT ASSESSED VALUE WILL BECOME, THAT SALE VALUE WILL BECOME THE ASSESSED VALUE. 
          IS THAT CORRECT? SO THAT WE CAN ALL UNDERSTAND THAT, UH, NO, THAT IS NOT CORRECT. 
          WHY NOT? UH, THE STATE LAW WOULD NOT ALLOW US TO DO THAT. 
          THAT'S REFERRED TO AS BAGGING SALES. 
          AND SO WHAT YOU ARE SUPPOSED TO DO IS DETERMINE WHAT SALES ARE, ARMS LENGTH SALES, USE THAT IN YOUR MODEL TO DETERMINE HOW MUCH THE MARKET HAS MOVED. 
          AND THEN YOU ARE MOVING ALL SALES BY THE PERCENTAGE THAT YOU DETERMINE THAT THE MARKET HAS MOVED. 
          SO NO, YOU'RE DEFINITELY NOT HITTING SOMETHING THAT'S SOLD FOR THE EXACT SAME SALE PRICE THE NEXT YEAR. 
          THAT WOULD BE ILLEGAL. 
          AND THAT WOULD MEAN WE COULD NOT GET OUR VALUES CERTIFIED BY THE DEPARTMENT OF REVENUE. 
          OKAY. 
          THANKS FOR THAT CLARIFICATION. 
          AND WE'LL NOTE THAT COURTHOUSE, ACCORDING TO THE ARTICLE, MIGHT HAVE COST $380 MILLION, BUT IT'S ASSESSED VALUE THIS YEAR IN THE CITY IS 140 MILLION AND IT WAS 175 MILLION LAST YEAR. 
          SO EVEN IF IT SELLS FOR FAR LESS THAN IT HAD BEEN, I THINK THE, THE VALUE IS ALREADY DOWN IT. 
          UM, I'M NOT SURE IF IT WAS EVER MUCH HIGHER THAN THAT, BUT THAT'S, I THINK ONCE YOU LOOK AT THAT, WHILE WE MAY HAVE ACRO A CASE OF LOTS OF VALUATIONS GOING DOWN, THE REALITY IS THAT LEVEL OF ASSESSMENT, PROBABLY IT WOULDN'T SELL FOR LESS THAN THAT. 
          SO THE ASSESSED VALUE WOULDN'T EVEN CHANGE. 
          AND THEREFORE TAXES WOULDN'T CHANGE ON THAT, CORRECT? WELL, I THINK IT'S, IF WE BELIEVE THE $380 MILLION A CORRECT VALUE, I DON'T NECESSARILY THINK THAT THAT IS AN ACCURATE VALUE. 
          THAT SEEMS A LITTLE INFLATED TO ME. 
          I THINK IT IS ALSO, IS THAT THE COST THAT IT WAS FOR THEM TO RECONFIGURE THE BUILDING AND RE-SKIN THE BUILDING AND DO THEIR WORK, DOES THAT INCLUDE THE INTERIOR FINISHES, WHICH IT DOES NOT ACTUALLY HAVE? ARE THEY SAYING THAT'S THE FINAL VALUE IF IT WERE FINISHED ON THE INTERIOR FOR TENANTS? UM, THAT'S NOT A FINISHED BUILDING ON THE INTERIOR, SO I DON'T NECESSARILY THINK THAT THAT'S A HUNDRED PERCENT ACCURATE NUMBER. 
          UM, YOU KNOW, AT THE SAME TIME, I THINK THAT WHAT THEY DID SAY IN THE ARTICLE WAS IF IT SELLS FOR HALF OF WHAT THIS COST IS THAT THEY'RE PUTTING FORWARD, THAT'S FAIRLY CLOSE TO WHAT OUR ASSESSMENT IS. 
          SO, NO, THAT WAS BEST POINT ISN'T ALREADY THAT. 
          SO IT SAYS TO ME THAT WE'RE PROBABLY THERE. 
          IT'S EVEN FOR THAT ONE. 
          NO, AND THEY WERE CLEAR. 
          THEY JUST SAID THEY ESTIMATED THAT WAS THE COST. 
          THEY DIDN'T SAY THAT WAS THE ASSESSED VALUE. 
          SO THE ARTICLE, THAT DOESN'T MEAN IT WAS ACCURATE, BUT I, I THINK THAT THE REASON I BROUGHT IT UP WAS OUR, OUR VALUE IS ALREADY FOR THAT BUILDING PRETTY CLOSE TO WHAT IT WOULD LIKELY BE AFTER, EVEN IF IT'S SOLD FOR MUCH LESS, UM, EVEN IF THAT AFFECTED THE WHOLE CLASS OF, OF PROPERTIES, UM, COUNSELOR A ZUBI. 
          YEAH. 
          JUST 
          [01:15:01]
A FEW QUESTIONS. 
          I WAS LOOKING BACK AT THE, THE CHART HERE WITH THE, WITH THE FEDERAL GRANT EXPOSURE AND WANTED TO ASK HOW WAS THE RISK LEVEL DETERMINED, IN PARTICULAR, THE ONES WHERE WE'RE SEEING A SHIFT FROM LOW TO HIGH BETWEEN 26 AND 27? 'CAUSE WE'RE SEEING ACROSS THE BOARD IN 27, UM, THAT THEY ALL BECOME MEDIUM OUTSIDE OF TWO, UH, THROUGH UTURN AND, UH, YOU MEAN SORT OF THE TWO HIGHS IN FY 27? YEAH, BUT MORE, MORE IMPORTANTLY, WHAT INFORMED THE SHIFT FROM LOW TO MEDIUM ACROSS 26 TO 27 FOR, FOR MANY OF THE, FOR MANY OF THE FUNDS, UM, FOR YOU CHAIR? I THINK FOR FY 26, UM, LOW ESSENTIALLY MEANS THAT, UH, WE DON'T HAVE ANY INDICATIONS, UH, THAT THERE IS RISK. 
          AND SO, YOU KNOW, WE SORT OF SEE THE LOW RISK IN 26 AS, UH, AS A LITTLE MORE BUSINESS AS USUAL. 
          UM, MEDIUM ARE PROGRAMS THAT WE HAVE SPECIFIC NOTICES FOR, UM, THAT ARE, UH, TARGETING FUNDING. 
          UM, MANY OF THESE ARE UNDERGOING EXISTING LITIGATION THAT, UH, IS I THINK STILL IN EITHER ACTIVE LITIGATION OR WE'RE WAITING TO SEE IF THERE'S AN APPEAL OR THERE'S AN ACTIVE APPEAL GOING ON. 
          UM, AS YOU MOVE INTO 27, UH, OBVIOUSLY THIS IS NOW FARTHER OUT, AND SO IT'S A LITTLE HARDER TO, UM, SAY WHETHER ANY OF THESE ARE REALLY IN LOW STATUS. 
          WE'VE SEEN THE FEDERAL ADMINISTRATION, UM, GO AFTER ALL OF THESE PROGRAMS PRETTY PERSISTENTLY. 
          UH, SO THE BASE RISK, I THINK WE ASSESSED AT MEDIUM. 
          UM, THE TWO HIGH RISK PROGRAMS ARE THE ONES WHERE, UH, YOU'VE HAD THE FEDERAL GOVERNMENT EXPLICITLY SAY THAT THEY ARE TRYING TO MAKE A POLICY CHANGE. 
          UM, THE COC PROGRAM IN PARTICULAR, UH, IS AT A MEDIUM LEVEL IN 26, MOSTLY BECAUSE WE'VE GOT AN INJUNCTION IN PLACE. 
          UM, BUT HOW IT ACTUALLY PLAYS OUT WILL DEPEND A LITTLE, LITTLE ON THE TIMELINE FOR WHERE THE COURTS END UP RULING, UH, FOR, UH, CERTAIN PAYMENTS TO STAY AT PRIOR LEVELS. 
          AND IT'S STILL A LITTLE BIT UNCLEAR TO WHAT EXTENT IF HUD FOLLOWS THE APPROPRIATE ADMINISTRATIVE PROCESSES, IT COULD STILL ENACT CHANGES TO THEIR POLICIES THAT WOULD REDUCE THE AMOUNT OF GUARANTEED FUNDING THAT WE COULD GET. 
          UM, SO THAT'S SORT OF WHAT'S DRIVING A HIGH RISK LEVEL FOR FY 27. 
          UM, I THINK THE FEAR HAS MOSTLY BEEN THAT IN THE SHORT TERM, WHEN THE FEDERAL GOVERNMENT MOVES ABRUPTLY WITHOUT FOLLOWING THOSE PROCESSES, WE'VE ACTUALLY BEEN VERY SUCCESSFUL IN LITIGATION. 
          UM, BUT IF THEY TOOK MORE TIME AND ACTUALLY RAN A MORE LOGICAL AND, AND LEGAL PROCESS, UM, THEY COULD ACTUALLY POTENTIALLY MAKE SOME OF THESE CHANGES THAT COULD REALLY HURT OUR EXISTING PROGRAMMING. 
          THANK YOU FOR SHARING A LITTLE BIT MORE ABOUT THAT. 
          IN TERMS OF HOW WE'RE GOING INTO THE SECURITY PLAN OR REPLACEMENT PLAN FOR SOME OF THESE HIGH RISK GRANTS, ESPECIALLY CONSIDERING WE HAVE LIMITED STABILIZATION FUNDS, IS THERE OPPORTUNITY FOR US TO EXPLORE ROOM IN FREE CASH? I MEAN, WE'RE, COUNCILOR SIMMONS MENTIONED IT AS MORE OF A SAVINGS, ONE TIME USAGE. 
          UH, COULD WE USE THIS AS AN OPPORTUNITY TO EXPLORE THAT KNOWING AGAIN, WE DO HAVE TENS OF MILLIONS OF DOLLARS IN FREE CASH. 
          WHAT COULD THE RELATIONSHIP BE BETWEEN THE FREE CASH ASPECT AND THE FEDERAL STABILIZATION PIECE, UH, THROUGH YOUR JOURNAL? AND, UH, I THINK, I THINK FREE CASH HAS PROVIDED US AN OPPORTUNITY IN EMERGENCY SITUATIONS TO MITIGATE SOME OF THESE IMPACTS. 
          UM, I WOULD PERHAPS CAUTION A LITTLE BIT, BECAUSE IN MANY CASES, THESE FEDERAL PROGRAMS ARE BEING CUT PRECISELY BECAUSE THE FEDERAL GOVERNMENT IS SAYING, WE SHOULDN'T BE DOING THESE THINGS. 
          THEY WOULD BE MORE THAN HAPPY TO SHIFT THE BURDEN TO LOCAL GOVERNMENTS. 
          UM, I THINK IN MANY CASES, THESE ARE EXPANSIVE PROGRAMS. WE'RE PROBABLY ONE OF THE ONLY MUNICIPALITIES THAT REALLY HAS SOME AMOUNT OF SPACE TO EVEN TRY AND MITIGATE. 
          AND IN THE CASE OF A LOT OF THE FEDERAL PROGRAMS THAT HAVE SHIFTED, LIKE SNAP, UM, OR EVEN THE CONTINUUM OF CARE, UM, THEY REALLY ADD UP AND, AND WOULD BE A TREMENDOUS BURDEN IN TERMS OF, UH, THE MUNICIPAL BUDGET. 
          UM, WE ALSO HAVE PENDING LITIGATION, UM, THAT IS DETAILING THE HARM THAT WOULD HAPPEN IF THIS FUNDING WAS PULLED AND THE PROGRAM COULD NOT CONTINUE. 
          UH, AND SO I THINK IT'S PRETTY IMPORTANT THAT WE ARE, UH, KEEPING IT CLEAR THAT THESE ARE, IN OUR VIEW, FEDERAL PROGRAMS A FEDERAL RESPONSIBILITY AND THAT THERE IS SOME LEVEL OF DIVISION BETWEEN THE WORK THAT WE EXPECT HUD TO DO, THE COMMITMENTS THAT THEY'VE MADE, UM, AND THEN THE ROLE OF LOCAL GOVERNMENT BROADLY, UM, TO, TO FILL THESE KINDS OF GAPS. 
          UM, THAT BEING SAID, UH, I AM SYMPATHETIC TO THE IDEA THAT ULTIMATELY IF THERE ARE SIGNIFICANT IMPACTS 
          [01:20:01]
THAT WE WOULD HAVE TO FIGURE OUT HOW TO RESPOND. 
          UM, I THINK THAT'S A CONVERSATION AS WE'RE FOLLOWING THESE PROGRAMS FOR WHEN THOSE RISKS, AND WE HOPE THEY WON'T COME TO PASS. 
          BUT, BUT IF SORT OF THE WORST COMES TO PASS, WE'D CERTAINLY BE COMMUNICATING CLEARLY TO THE CITY COUNCIL AND WE'D BE COORDINATING REGIONALLY. 
          AND, AND MANY OF THESE PROGRAMS ULTIMATELY ARE GOING TO IMPACT NOT JUST THE CITY OF CAMBRIDGE, BUT PEOPLE WHO ARE BEING SERVED ACROSS THE WHOLE GREATER BOSTON AREA. 
          UH, AND WE WOULD HOPE THAT WE WOULD HAVE A REGIONAL RESPONSE THAT WE'D BE COORDINATING WITH THE STATE AND THAT THERE WOULD BE A COLLECTIVE, YOU KNOW, WHAT ARE WE GOING TO DO ABOUT THIS? UM, SO I THINK IS THAT HELPFUL IN TERMS OF BOTH HOW WE'RE THINKING ABOUT IT SHORT TERM, BUT ALSO HOW THIS WOULD PLAY OUT OVER THE LONGER TERM? YEAH, I, I DO UNDERSTAND THE PIECE ABOUT MAKING SURE THE FEDERAL GOVERNMENT AND REGIONALLY EVERYONE'S DOING THEIR PART. 
          I, I, I DEFINITELY JUST WANNA BE MINDFUL OF, OF MAKING SURE WE'RE NOT LEAVING ANYONE BEHIND TO DRY, ESPECIALLY OUR MOST VULNERABLE. 
          I SAW COUNCILLOR MCGOVERN HAD A QUESTION, SO I'LL, I'LL YIELD FOR NOW. 
          OH, COUNCILOR MCGOVERN. 
          YEAH, THANK YOU. 
          NO, YOU, I MEAN, FEEL FREE TO FINISH. 
          I, I, I THINK I WAS GONNA HAVE TO COMMENT ON THE FREE CASH, UH, PIECE AND YOU KNOW, I'VE CERTAINLY NOT SOMEONE, YOU KNOW, WHO'S BEEN AFRAID TO SAY WE SHOULD DIP INTO IT IF, IF IN TIMES OF EMERGENCY. 
          UM, I THINK ONE OF THE CHALLENGES WITH IT THOUGH IS THAT ESPECIALLY WHEN YOU'RE, YOU'RE USING IT FOR THINGS LIKE VOUCHERS OR THINGS THAT YOU WANT TO KEEP GOING, UM, YOU KNOW, ONCE YOU DIP, YOU MAYBE YOU MAY DIP INTO THAT, THOSE UNEX UH, UNEX EXPENDED FUNDS AT FIRST TO KIND OF STOP THE CRISIS, BUT THEN THOSE EVENTUALLY BECOME LINE ITEMS IN THE BUDGET, WHICH THEN RAISES YOUR, YOUR, YOU CAN'T KEEP, YOU DON'T KEEP TAKING IT OUT OF FREE CASH. 
          SO IF FOR LONG TERM KIND OF THINGS, THINGS WE WANT TO KEEP, IT GETS A LITTLE BIT TRICKY. 
          AND, AND I WAS JUST KIND OF CURIOUS TOO AROUND HOW ALL THIS, I MEAN, WE, WE, WE, THE WAY WE GET THOSE FUNDS IS WE'VE, WE'VE BEEN TAKING IN MORE MONEY, YOU KNOW, THAT THAT FREE CASH IS, WE'VE ALWAYS SPENT SOME PORTION OF THAT AND THEN IT GETS REPLENISHED. 
          UM, BUT I'M ASSUMING WE'RE NOT GONNA SEE THAT REPLENISHMENT HAPPENING AT THE SAME RATE. 
          SO CAN YOU TALK A LITTLE BIT ABOUT, ABOUT THAT? 'CAUSE WE, WE ARE GONNA, IT IS ONE THING TO SPEND A HUNDRED MILLION, LIKE AT TIMES THAT WE'VE DONE OUT OF FREE CASH WHEN WE KNOW WE'RE GONNA GET 150 MILLION , YOU KNOW, THE FOLLOWING YEAR. 
          UM, BUT I DON'T THINK WE'RE GONNA BE REPLENISHING IT. 
          UH, AT THE RATE WE'VE BEEN, WE'VE BEEN ACCUSTOMED, UH, YES THROUGH YOU, UH, CO-CHAIR. 
          UM, AND SO SAY WE DEFINITELY DON'T REPLENISH IT AS 150. 
          IT IS SORT OF A SAVINGS ACCOUNT THAT IS BUILT YEAR OVER YEAR OVER YEAR. 
          SO CURRENT, I THINK OUR CERTIFIED AMOUNT WAS AROUND $184 MILLION THIS YEAR, UM, WHICH WAS DOWN, UM, ABOUT 20 MILLION. 
          UM, IF YOU TAKE OUT THE NET OF MITIGATION FROM THE YEAR BEFORE, SO AS WE ARE SEEING OUR EXCESS LEVY CAPACITY IS DECLINING, WE ALSO HAVE A DECLINING TREND IN OUR FREE CASH. 
          BUT TO YOUR POINT, HOW WE REPLENISH IT EACH YEAR IS THAT, YOU KNOW, WE, WE PASS A BUDGET AND, AND WE, YOU KNOW, EVERY YEAR OUR EXPENDITURES, WE DON'T EXPEND 100% OF, OF EVERY DOLLAR THAT WE'VE BUDGETED. 
          SO THOSE BALANCES THAT ARE LEFT ON THE BOTTOM LINE ARE SORT OF SWEPT INTO THAT ACCOUNT. 
          AND THEN OF COURSE, OUR REVENUES ARE ALSO PROJECTIONS AND, YOU KNOW, THERE HAVE BEEN THE, THE, THE GOOD YEARS WERE REALLY GOOD, RIGHT? SO WHEN, WHEN BUILDING PERMITS WERE COMING IN, WE MIGHT BE BUDGETING A CERTAIN NUMBER TO BE CONSERVATIVE, AND THEN WE EXCEEDED THAT NUMBER, AND THAT MIGHT HAPPEN IN A NUMBER OF DIFFERENT REVENUE SOURCES. 
          SO THAT EXCESS REVENUE AND UNDERSPENDING SLIGHTLY UNDERSPENDING OUR BUDGET YEAR OVER YEAR HAS JUST ADDED, YOU KNOW, FUNDING TO THAT. 
          AND EACH YEAR, THEN WE DO SPEND SOME OF THAT, UM, FREE CASH BASICALLY PARTIALLY TO KEEP US FROM RAISING AGAIN THROUGH THE TAXES, BUT WE'LL SPEND SOME OF IT ON, UH, WE DO SPEND SOME OF IT ACTUALLY AS A REVENUE SOURCE TO OUR BUDGET SO THAT WE ACTUALLY LOWER THE BURDEN ON OUR TAXPAYERS. 
          SO FOR EXAMPLE, IN OUR CURRENT FY 26 BUDGET, 18 MILLION IS A REVENUE TO, UM, THE GENERAL FUND BUDGET 18 MILLION THAT IF WE DIDN'T HAVE THE FREE CASH WE WOULD BE RAISING THROUGH TAXES, UH, TO FUND. 
          UM, AND SO I WOULD SAY THAT WHILE THERE IS REPLENISHMENT, IT'S NOT WHOLESALE REPLENISHMENT OF 184 MILLION, RIGHT? MOST OF THAT 184 MILLION WILL NOT BE SPENT THIS YEAR. 
          WE'LL SPEND SOME OF IT AND IT WILL BE PROBABLY WHATEVER WE SPEND MAY BE REPLENISHED. 
          UM, I THINK, I THINK I'LL ADD TOO THAT, YOU KNOW, UM, WHEN WE SET UP THAT FEDERAL STABILIZATION FUND LAST JUNE, THAT WAS A TRANSFER FROM FREE CASH INTO THE STABILIZATION FUND, RIGHT? SO IT WAS A FREE CASH, 
          [01:25:01]
UH, IS IS THE FUNDING. 
          AND WHAT WE ACKNOWLEDGED WAS THAT, YOU KNOW, DOING IT REGULARLY OUTTA FREE CASH OUT OF THESE ONE-TIME SOURCE, MEANING WE WOULD JUST, BASICALLY THAT IS SOMETHING YOU WOULD NOT DO, IS, IS USE AN ON IS FUND AN ONGOING EXPENSE OUT OF A ONE-TIME STATIC, UH, SOURCE. 
          AND SO I THINK WE'VE TALKED ABOUT IN OUR PROJECTIONS, WE'VE BEEN WORKING WITH A PROJECTION OF TRYING TO BUILD INTO OUR OPERATING BUDGET THAT SAME AMOUNT WE HAVE SITTING INTO THE, IN THE STABILIZATION FUND, SO THAT WE MIGHT BE ABLE TO ABSORB SOME OF THE COSTS OF THE FEDERAL PROGRAMMING. 
          BUT I THINK TO THE CITY MANAGER'S POINT, WE REALLY CAN'T ABSORB THE $21 MILLION. 
          AND SO I THINK THAT IS ALSO PART OF OUR CONVERSATION, RIGHT? LIKE WHAT OF SOME OF THESE, UH, PROGRAMS THAT WE HAVE, IF WE WERE TO LOSE FEDERAL FUNDING, WOULD WE WORK TO ABSORB INTO OUR OPERATING BUDGET? SO WORK IT IN SO THAT IT ISN'T, DOESN'T NEED TO BE FUNDED THROUGH THE, THE ONE-TIME SOURCE, BUT IT BECOMES PART OF OUR OPERATING BUDGET. 
          BUT AGAIN, I DON'T, WE, WE CANNOT, WE, WE, I DON'T THINK WE CAN PLAN TO ABSORB 21 MILLION. 
          IT IS A LARGER FEDERAL QUESTION. 
          COUNCILLOR MCGOVERN, DOES THAT ANSWER? UH, YES. 
          SORRY, I YIELD COUNCILOR SUZI. 
          UH, I HAD A, A QUESTION AND THEN I'LL SHARE MY IDEAS FOR, UH, INCREASING FEES, UH, OTHER REVENUE SOURCES. 
          I, I WONDERED FROM, AND I, AND I APOLOGIZE FOR, I WAS SUPPOSED TO SEND MY QUESTIONS BEFOREHAND, BUT THERE ARE A LOT OF MEETINGS TO PREPARE FOR. 
          UM, ON SLIDE 21, UH, YOU, THIS ONE HERE, YOU TALK ABOUT HOW, UH, THE PLUS NEW GROWTH FACTOR IS 13.8 MILLION. 
          SO THAT, THAT'S FROM, I KNOW, UM, OUR RESIDENCES ARE, UM, THEIR VALUE IS GROWING JUST A LITTLE BIT. 
          IS THAT WHERE THAT GROWTH FACTOR IS FROM? OR WHERE, WHERE ARE YOU ANTICIPATING THE 13.8 MILLION TO COME FROM THROUGH YOU CO-CHAIR, UH, TO COUNCILLOR ZUZI? SO THIS WAS AN ILLUSTRATION, UM, WHERE WE DID USE, UM, SOME REAL NUMBERS. 
          AND WHAT WE WERE, IN THIS PARTICULAR ILLUSTRATION, WE WERE SORT OF, UM, HYPOTHESIZING AND REFRAMING FY 26, WHICH IS THE BUDGET THAT YOU ALL ADOPTED IN JUNE AND SET A TAX RATE FOR IN SEPTEMBER. 
          AND SO OUR HYPOTHESIS HERE WAS WHAT IF THE CITY OF CAMBRIDGE WAS AT ITS LEVY LIMIT? SO WE HAD NO EXCESS LE LEVY CAPACITY LIKE MANY OF OUR SURROUNDING COMMUNITIES. 
          UM, AND SO THE ONLY, UH, WE COULD ONLY GROW OUR PROPERTY TAX LEVY, UH, BY TWO AND A HALF PERCENT OF OUR LEVY LIMIT, WHICH WE CALCULATE IT TO BE TWO AND A HALF PERCENT OF 628. 
          TWO AND A HALF PERCENT OF THE PREVIOUS, YEAH, OF THE, OF THE, YEAH, OF THE PREVIOUS YEAR, 628.4 MILLION. 
          SO THAT TOTALED 15.7. 
          AND THEN WE SAID WE, WE, WE DID HAVE A NEW GROWTH FACTOR, UM, ADDING $13.8 MILLION TO OUR LEVY LIMIT. 
          AND THAT WAS, UM, SO THAT, THAT DID HAPPEN, UM, FOR FY 26. 
          SO THAT IS A NUMBER. 
          AND SO IF WE WERE AT OUR LEVY LIMIT, SO WE WERE ALREADY LEVYING THE MAXIMUM AMOUNT IN FY 25, SO TO FUND FY 26, WE COULD ADD THE TWO POINT A HALF PERCENT, WE COULD ADD THE NEW GROWTH, AND THEN OUR HYPOTHETICAL LEVY LIMIT WOULD BE $657.9 MILLION FOR OUR CURRENT YEAR THAT WE'RE ALREADY IN. 
          BUT YOU CAN SEE HERE THAT ACTUALLY LAST YEAR WHEN YOU VOTED OUR TAX RATE, IT WAS FOR 678.9 MILLION BECAUSE WE DID HAVE EXCESS LEVEE CAPACITY. 
          SO WE WENT INTO OUR EXCESS LEVEE CAPACITY IN ORDER TO TO, TO FUND OUR BUDGET, UM, FOR FY 26. 
          AND I THINK THIS ILLUSTRATION HERE IS, IS THAT HAD WE NOT HAD THE EXCESS LEVEE CAPACITY, OUR BUDGET WOULD'VE NEEDED TO BE $21 MILLION LOWER IN FY 26. 
          UH, THANK YOU SO MUCH. 
          THAT REALLY, THAT REALLY HELPS. 
          AND I, I GUESS I WAS READING THAT SLIDE TOO QUICKLY, SO I WAS THINKING ABOUT WHERE COULD WE GET MORE MONEY, BUT 12 MILLION IS HARD TO FIND. 
          UH, ANYWAY, I WAS THINKING, YOU KNOW, I KNOW THE COUNCIL PASSED BEFORE I JOINED THE COUNCIL, UM, UH, THEY, THERE WAS A POLICY ORDER, UH, ASKING THE CITY TO RAISE ITS PARKING FEES, YOU KNOW, FROM 20 FOR PARKING PERMITS FROM $25 PER PERMIT TO $75 PERMIT PER PERMIT. 
          I DON'T 
          [01:30:01]
THINK THAT'S GONNA GET US $12 MILLION. 
          THE ONLY OTHER THINGS I COULD COME UP WITH WERE, UM, I KNOW WHEN I'VE BEEN, UM, CAMPAIGNING IN FRONT OF THE LIBRARY AT THE MAIN BRANCH, ALMOST ALL OF THE USERS ARE FROM OTHER CITIES. 
          AND, BUT I DON'T THINK WE CAN DO ANYTHING ABOUT THAT. 
          WE HAVE SUCH GREAT LIBRARIES THAT MANY, MANY PEOPLE FROM SURROUNDING COMMUNITIES USE OUR LIBRARIES, BUT I THINK SINCE WE'RE PART OF THE MINUTEMAN SYSTEM, WE CAN'T, UM, UM, YOU KNOW, INSTITUTE A FEE FOR NON CAMBRIDGE USERS AND IT WOULD BE HARD TO IDENTIFY THEM. 
          SO I I THINK THAT'S, YEAH, I'M, I'M SAYING THE CITY MANAGER SHAKE HIS HEAD. 
          I, I DON'T THINK THAT REALLY WORKS. 
          SO THE, THE ONLY OTHER IDEA I HAD WAS ONE THAT ACTUALLY CAME FROM MING, WHO, WHO, WHICH WAS, WHO WAS LOOKING AT THE, UM, NOVEMBER 26TH PROPERTY UPDATE. 
          AND HE WAS LOOKING AT THE ELDERLY VETERAN AND OTHER STATUTORY EXEMPTIONS, AND THERE ARE A LOT OF THEM. 
          AND I GUESS WHAT HE WONDERED WAS, UH, YOU KNOW, MAYBE WE'RE BEING TOO GENEROUS. 
          I MEAN, WOULD THERE BE A WAY THAT WE, AND I DON'T WANNA GET IN TROUBLE WITH THIS, BUT IT IS AN IDEA TO, WE, WE HAVE A LOT OF WEALTHY PEOPLE IN CAMBRIDGE, UH, SO MAYBE WE COULD BE INCREASING RESIDENTIAL TAX TAXES, BUT HAVE MORE EXEMPTIONS. 
          SO IF IT, SO THE EXEMPTIONS WOULD BE FOR INCOME QUALIFIED INDIVIDUALS, THOSE WOULD BE FOR THE, UM, PROPERTY RICH, A HOUSE RICH CASH, POOR PEOPLE. 
          UM, AND AGAIN, I DON'T KNOW HOW YOU WOULD, UM, I DON'T KNOW HOW PEOPLE WOULD, UH, BE ABLE TO PROVE THAT THAT WAS THEIR SITUATION, BUT IS THERE SOME WAY, THERE ARE A LOT OF WEALTHY PEOPLE IN CAMBRIDGE. 
          MAYBE THEY COULD BE PAYING A LITTLE BIT HIGHER RESIDENTIAL PROPERTY TAX. 
          UM, BUT THERE WOULD NEED TO BE EXEMPTIONS FOR PEOPLE THAT JUST DIDN'T HAVE THE MONEY BECAUSE WE DON'T WANNA CHASE OUR LONGTIME RESIDENTS OUT OF TOWN. 
          THANK YOU. 
          I YIELD, DID YOU WANNA RESPOND TO THAT? ANYONE? YES, PLEASE. 
          YEAH, YEAH. 
          UM, SO ALL OF THE EXEMPTIONS, THE PERSONAL EXEMPTIONS IS WHAT THEY'RE CALLED ARE SET BY STATE STATUTE. 
          SO WE WOULDN'T BE ABLE TO CHANGE THOSE. 
          WE CAN'T CHANGE THE AMOUNT, WE CAN'T CHANGE THE CRITERIA, UM, ON THOSE. 
          AND WE ALSO CAN'T DECIDE TO TAX SOME RESIDENTIAL TAXPAYERS AT A HIGHER RATE THAN OTHERS. 
          JUST LIKE WITH THE, THE EARLIER, UM, PUBLIC COMMENT, WE CAN'T DECIDE THAT WE'RE GOING TO TAX LOCAL RESTAURANTS LESS THAN WE WILL TAX, UH, LAB OR OFFICE THAT IT'S ONE RATE FOR THE COMMERCIAL, IT'S ONE WAY RATE FOR THE RESIDENTIAL. 
          UM, AND THAT'S ALL SET BY STATE LAW. 
          SO IN ORDER TO CHANGE THAT, THAT WOULD BE AN INCREDIBLY LENGTHY PROCESS AND I DON'T THINK YOU'D PROBABLY GET ANY OTHER TOWNS THAT WOULD HAVE INTEREST IN, IN DOING THAT. 
          THANK YOU. 
          THAT'S SO HELPFUL. 
          AND IT MAKES ME THINK, I MEAN, I, I DON'T THINK WE HAVE ANY OPTION OTHER THAN TO REDUCE OUR BUDGET MORE. 
          I, UM, UNLESS MY COLLEAGUES HAVE OTHER BETTER IDEAS FOR BRINGING IN NEW FEES. 
          THANK YOU. 
          BEFORE, UM, I, I'LL GO TO COUNCILOR ZE IN JUST A MINUTE. 
          I DID WANNA ASK ON MY OTHER QUESTION ON THE RESIDENTIAL GROWTH IS ASSUMED HERE, THERE WAS, UM, IT SAYS, UM, MODEST APPRECIATION AND GROWTH IS THAT IN LINE WITH WHAT WE ARE PROJECTING TO SEE FROM THE RECENT ZONING CHANGES, THE MULTIFAMILY ZONING ACROSS THE CITY, AND THE NUMBER OF UNITS AND THE VALUES THAT WE'RE SEEING ON THAT. 
          BECAUSE AGAIN, THE MORE WHAT HAPPENS WITH OUR TAX LEVY IS YOU HAVE THE EXISTING, AND THEN NEW GROWTH DOES GIVE YOU, IT DOESN'T MEAN IF TAXES GO UP THAT EXISTING PROPERTY OWNERS HAVE TO NECESSARILY PAY MORE IN DOLLARS BECAUSE IF YOU HAVE NEW GROWTH AND THEY COVER IT, AND WE ARE EXPECTING NOT NECESSARILY MUCH NEW, ALTHOUGH SOME ON THE COMMERCIAL, BUT ON RESIDENTIAL, I THINK WE ARE EXPECTING IS THAT INCLUDED IN THAT GROWTH FACTOR INCLUDED IN THESE, UH, SCENARIOS? UM, NO, IT IS NOT. 
          UH, WE STILL DON'T KNOW WHAT THE IMPACT OF THE ZONING CHANGES IS, AND SO ALL OF OUR ASSESSMENTS ARE LOOKING BACK IN TIME. 
          AND SO WHAT IS HAPPENING, YOU KNOW, RIGHT NOW, IN 2026, WE WOULDN'T BE TAKING INTO CONSIDERATION UNTIL FISCAL 28. 
          UM, AND BECAUSE OF THAT, WE, WE STILL DON'T HAVE ANY IDEAS TO WHAT THE IMPACT WILL BE OF THOSE ZONING CHANGES. 
          WE'LL BE LOOKING FOR IT IN THE SALES AND IN DEVELOPMENT THAT WE SEE, BUT RIGHT NOW, NO, NONE OF THAT IS, IS PART OF THE SCENARIOS. 
          THANKS. 
          I, I UNDERSTAND THE ASSESSING OFTEN ISN, BUT OUR CDD HAS PROJECTIONS AND HAS EXPECTATIONS AND IN FACT, IT'S ALREADY IN PAPER. 
          SO, AND IT DOES SAY THAT 
          [01:35:01]
MODEST APPRECIATION AND GROWTH FOR RESIDENTIAL PROPERTY. 
          SO ARE YOU SAYING THERE'S NO GROWTH ASSUMED BASED ON WHAT OUR OWN CITY PROJECTIONS ARE FOR THE NEXT FEW YEARS? I THINK THAT WHAT I CAN SAY IS FOR THE ASSESSING DEPARTMENT, WE DON'T HAVE ANY OF THE ZONING CHANGES IN PART ANY OF THE SCENARIOS THAT WE ARE RUNNING, BECAUSE THAT'S GOING TO BE SOMETHING THAT WE'LL SEE IN THE FUTURE. 
          AND WE, ALL OF OUR ASSESSMENTS ARE LOOKING BACK. 
          SO WE'RE NOT TAKING WHAT CDD HAS PUT FORWARD AND ADDING THAT INTO ANY OF THE SCENARIOS THAT WE'RE CREATING. 
          WE'RE SIMPLY SAYING BASED ON PREVIOUS EXPERIENCE, THIS IS WHERE WE FIND OURSELVES. 
          RIGHT. 
          SO THEN DID THE FINANCE STAFF DO THAT BECAUSE THEY DO HAVE THOSE NUMBERS? I MEAN, I WOULD EXPECT US TO HAVE AT LEAST HAVE, UH, THE WHOLE REASON WE DID THE ZONING CHANGE WAS TO GET MORE HOUSING. 
          AND SO, AND, AND WE ARE DOING PROJECTIONS. 
          SO SOMEBODY IS ASSUMING PROJECTIONS, I UNDERSTAND IT MIGHT NOT BE ASSESSING, BUT SOMEBODY IS, IS ASSUMING PROJECTIONS FOR THE NEXT THREE YEARS ABOUT WHAT RESIDENTIAL GROWTH IS GONNA BE, JUST LIKE WHAT COMMERCIAL GROWTH WOULD BE. 
          AND WE HAVE NEW CONSTRUCTION. 
          SO IS THAT, I, I'M JUST TRYING TO UNDERSTAND IS THE BASE CASE HERE WHAT WE ARE PROJECTING AND EXPECTING TO SEE, WHICH IS WHAT I WOULD EXPECT IF THE, IF THE CITY IS ACTUALLY WORKING NOT IN SILOS. 
          UM, MAYBE I COULD TAKE A STEP, YOU TAKE A STEP AT JOURNAL AND, UM, I THINK SOME OF THIS IS PROBABLY BETTER EXPLAINED IN TERMS OF BOTH DIFFERENT TIMEFRAMES FOR HOW WE'RE DOING DIFFERENT KINDS OF ANALYSIS. 
          SO FROM A CDD PERSPECTIVE, AS WE'RE THINKING ABOUT CHANGING ZONING, ULTIMATELY THE ZONING CHANGES FIRST, AND THEN YOU HAVE A MUCH LONGER TIMELINE. 
          AND I THINK WE'VE, WE'VE HAD SOME OF THESE CONVERSATIONS. 
          UM, THERE'S BOTH THE UNCERTAINTY OF, UH, HOW THE MARKET WILL RESPOND, BUT AS WELL, UH, YOU'RE TALKING ABOUT DEVELOPERS THAT ARE GOING TO, UM, GO AND POTENTIALLY EXAMINE PARCELS, MAYBE PURCHASE, THEY HAVE TO COME UP WITH PLANS, IT HAS TO THEN GET PERMITTED. 
          THERE'S A WHOLE SET OF THINGS THAT HAVE TO HAPPEN BEFORE, UM, A NEW RESIDENTIAL BUILDING ACTUALLY GOES UP. 
          UM, AND SO THIS IS BOTH, YOU KNOW, PROJECTING OUT A COUPLE OF YEARS. 
          UH, AND WE HAVEN'T ACTUALLY HAD THAT MUCH TIME TO SEE REALLY HARD DATA. 
          AND SO, YOU KNOW, WE ARE COMMITTED TO COMING BACK TO THE CITY COUNCIL AND SHARING AT LEAST SOME OF THOSE LEADING INDICATORS. 
          UM, I, I WOULD THEN THINK ABOUT LIKE THE JOB OF ASSESSING, AND GAIL CAN TALK IN MORE LENGTH ABOUT THAT, BUT IT'S ACTUALLY MUCH MORE BACKWARDS LOOKING. 
          AND SO WHEN YOU THINK ABOUT ASSESSING, ASSESSING IS A LAGGING, UH, INDICATOR. 
          AND SO EVEN THE, THE VALUES, UM, THAT WE'RE INCORPORATING INTO THE TAX RADAR FROM THE PRIOR YEAR, UM, AND SO IN TERMS OF HOW MUCH CHANGES IN ZONING ARE GOING TO THEN FULLY BE REFLECTED IN THE VALUATIONS THAT ASSESSING IS RUNNING, THAT'S AN EVEN LONGER PATHWAY. 
          UM, SO THESE ARE ALL INCREDIBLY IMPORTANT IN TERMS OF, I THINK YOU'RE CORRECT, THE BROADER ECONOMIC STRATEGY THAT'S HAPPENING. 
          UM, I MEAN WITHIN CAMBRIDGE, I WOULD SAY YES, LIKE THERE IS AN IMPORTANCE TOWARD THE RESIDENTIAL DEVELOPMENT. 
          MY SENSE IN TERMS OF THE CONVERSATIONS WE'VE HAD IN THE CHAMBER, IT IS MORE ABOUT ULTIMATELY MORE HOUSING FOR PEOPLE TO AFFORDABLY STAY IN THE COMMUNITY AS OPPOSED TO AN ECONOMIC GROWTH DRIVER, THOUGH THAT IS SOME, THERE IS SOME EFFECT THERE. 
          THE PREDOMINANT DRIVERS OF ECONOMIC GROWTH HAVE REALLY BEEN COMMERCIAL WITHIN THE CITY OF CAMBRIDGE. 
          UM, AND I THINK THAT PROBABLY WILL CONTINUE TO PREDOMINATE OVER THE COMING YEARS. 
          UM, BUT IN TERMS OF THE ZONING, UH, I WOULD NOT EX, I MEAN WE COULD PROBABLY COME UP WITH A BIT MORE OF A WRITTEN, YOU KNOW, OVERVIEW OF THIS, BUT I WOULDN'T EXPECT FOR US TO SEE THOSE VALUES FOR A NUMBER OF YEARS. 
          YEAH, I, MY POINT IS WE'RE PROJECTING OUT FOUR YEARS. 
          HOUSES ARE BEING BUILT NOW. 
          THEY'RE BEING PLANNED NOW WE HAVE THE DATA ON WHAT WE EXPECT AND IT'S NOT GONNA BE A HUGE, BUT SOMEBODY DID A PROJECTION OF ASSUMING WHAT IT IS FOUR YEARS FROM NOW, THEY EITHER INCLUDED THAT GROWTH OR NOT. 
          AND IF WE DIDN'T INCLUDE THE GROWTH, EVEN SOME ESTIMATE OF IT, IT SHOULD, BUT SOMEBODY INCLUDED SOME GROWTH FIGURES. 
          SO I WOULD HOPE THAT DEPARTMENTS ARE WORKING TOGETHER AND THAT WE'RE, WE'RE ALSO COORDINATED OF, OF COURSE ASSESSMENT IS LOOKING BACK, BUT THE REALITY IS THREE YEARS FROM NOW, THAT MEANS IT'S STUFF THAT'S GETTING BUILT NEXT YEAR SHOULD ALREADY BE REFLECTED. 
          AND ANYTHING THAT'S THAT'S BUILT THIS YEAR IS GONNA BE REFLECTED NEXT YEAR. 
          SO, SO I DON'T THINK IT'S AN UNREASONABLE QUESTION FOR US TO JUST TEASE THAT OUT A LITTLE BIT AND UNDERSTAND HOW THAT FACTORS IN. 
          YEAH, BECAUSE WE'RE GOING FOUR YEARS OUT. 
          SO AGAIN, LET'S JUST MAKE SURE WE'RE IN SYNC. 
          I'D SAY ALSO THROUGH YOU JOURNAL, AND I MEAN I THINK I WOULD ALSO SEPARATE OUT LIKE SLIGHTLY DIFFERENT DISCIPLINES. 
          UM, THERE'S, THERE'S THE WORK THAT WE'RE DOING IN HOUSING AND ZONING, AND I THINK IN THOSE CASES WE ARE, WE ARE PUTTING FORWARD OUR BEST ESTIMATES, OUR BASELINE PROJECTIONS FOR HOW WE THINK THE MARKET IS GOING TO RESPOND. 
          [01:40:01]
UM, AT THE SAME TIME WE HAVE TO MAKE FINANCIAL PROJECTIONS. 
          AND I THINK, I THINK I, I KIND OF GET WHAT YOU'RE SAYING. 
          YOU'RE LIKE, WELL, WHY ARE THESE NOT THE SAME? AND I THINK THE REASON IS BECAUSE FINANCIAL PROJECTIONS ARE FUNDAMENTALLY GOING TO LEAN CONSERVATIVE. 
          UM, AND SO AS WE PLAN FOR OUR FINANCIAL PROJECTIONS, IT'S NOT TO SAY THAT WE DON'T BELIEVE THE PROJECTIONS WE'RE MAKING AS WE SET HOUSING POLICY AND ZONING POLICY, BUT WE'RE PROBABLY NOT GONNA BAKE, UM, YOU KNOW, BAKE THE IMPACT OF, OF THOSE HOUSING PROJECTIONS INTO YEAR THREE AND YEAR FOUR IMMEDIATELY I THINK WE'RE GONNA WANNA SEE THAT SOME OF THOSE LEADING INDICATORS BE MUCH STRONGER. 
          UM, AND AND IT TENDS TO BE WHEN YOU'RE PROJECTING FINANCIALLY, IF YOU WANT TO MISS, YOU WANT TO MISS, UH, YOU WANNA MISS CONSERVATIVE. 
          UM, SO YOU WANT TO BE, AND ESPECIALLY IN MUNICIPAL GOVERNMENT, LIKE WHEN WE MISS MISS, WE WANT TO MISS AND THINGS ARE BETTER THAN WE THOUGHT. 
          WE DON'T WANT TO MISS AND, AND ACTUALLY FIND OUT, FOR INSTANCE, THAT MIDYEAR, WE HAVE TO MAKE A CORRECTION. 
          YEAH, I MEAN, I, I WOULD AMPLIFY THAT. 
          I I THINK WE DO DO PROJECTIONS, RIGHT, RIGHT. 
          SO FORWARD, BUT THOSE ARE THE PROJECTIONS THAT WE'RE DOING FROM A FINANCIAL ANALYSIS THAT WILL BE IMPACTING TAXES, ET CETERA. 
          AND OUR, AND OUR BOTTOM LINE. 
          WE ACTUALLY NEED TO SEE THE MARKET EVIDENCE FOR A COUPLE OF YEARS TO START BAKING THAT INTO OUR MODEL SO THAT IT STARTS TO MOVE FORWARD. 
          AND I THINK, SO WE DON'T, WE AREN'T BAKING THOSE INTO, YOU KNOW, WE, WE MAY START TO BAKE SOME OF THOSE INTO, YOU KNOW, AS, AS WE START TO SEE PERMITS PULLED AND START TO UNDERSTAND THINGS INTO MAYBE BUILDING PERMIT PROJECTIONS. 
          BUT, YOU KNOW, WE ARE NOT, I I THINK AT THIS POINT THERE'S THE, THE PROJECTIONS THAT THEY HAVE FOR RESIDENTIAL GROWTH, FOR COMMERCIAL GROWTH ARE LOOKING AT A LOT OF FACTORS, BUT REALLY WHAT'S HAPPENING IN THE MARKET TODAY IS THE BIGGEST FACTOR THAT IS INFORMING HOW THEY THINK IT'S GONNA SCROLL OUT OVER THE NEXT COUPLE OF YEARS. 
          SO THEY WILL EVENTUALLY GET INTO THE MODEL AS WE START TO SEE THE ACTUAL MARKET IMPACT OF THOSE CHANGES. 
          YEAH, NO, AND, AND IT MAY BE ZERO. 
          I MEAN, WE'RE, I I, BUT THE POINT IS, SOMEBODY'S DOING PROJECTIONS AND THEY SHOULD BE BASED ON WHAT WE EXPECT TO SEE, AND THERE COULD BE LOW, MEDIUM, HIGH, YOU KNOW, THAT, BOY, IF WE HIT OUR TARGETS, IT'LL BE THIS, AND IF WE DON'T, IT'LL BE THIS. 
          AND IF WE FALL BACKWARDS, IT'LL BE THIS COUNCIL AZI. 
          THANK YOU. 
          UH, CHAIR NOLAN. 
          UM, I JUST WANTED TO SECOND A LITTLE BIT OF THE FINANCIAL PROJECTIONS THAT, UH, COUNCILOR NOLAN WAS SUGGESTING IN THAT, UM, I MEAN, I THINK I WOULD'VE A DIFFERENT INTERPRETATION, WHICH IS I'M NOT SURE WE REALLY BELIEVE, UM, CD'S PROJECTIONS, LIKE THERE AN ESTIMATE OF WHAT MAYBE WILL HAPPEN, BUT LIKE WE KNOW THAT, YOU KNOW, IT'S REALLY HARD FOR HOUSING TO PENCIL RIGHT NOW. 
          WE ARE CONSISTENTLY CHANGING OUR ZONING POLICIES, UM, AND ALL THOSE SORTS OF STUFF. 
          BUT, UM, I WOULD SAY THAT, UM, LIKE, UH, AT LEAST WE DON'T TRUST 'EM ENOUGH TO BUILD A FINANCIAL MODEL OFF OF. 
          BUT I WOULD SAY IT WOULD STILL BE INTERESTING TO SEE, LIKE, I THINK THAT ONE GENUINE QUESTION THAT THE PUBLIC HAS IS LIKE, WHAT DOES THE IMPACT OF DEVELOPMENT HAVE ON OUR BUDGET AND ON RESIDENTIAL PROPERTY TAXES? AND I THINK THAT, YOU KNOW, EVEN A SMALLER FINANCIAL MODELING OF LIKE, IF WE BUILT SO MANY UNITS AND THIS IS SOME ASSUMPTIONS LIKE THAT COULD BE HELPFUL. 
          UM, SO JUST WANTED TO SAY THAT FIRST AND THEN I HAVE A SECOND COMMENT, BUT I WASN'T SURE IF CITY STAFF HAD ANYTHING THEY WANTED TO SAY THERE. 
          DID YOU WANNA RESPOND OR NOT? NO. 
          OKAY. 
          MY SECOND POINT. 
          COUNCILOR ZAM. 
          YEAH. 
          YES. 
          UH, MY SECOND POINT, UM, WAS THAT, UM, YOU KNOW, THERE'S ANOTHER WAY TO GROW THE BUDGET, LIKE EACH BUILDING IN KENDALL SQUARE BRINGS IN LIKE ROUGHLY I THINK HALF A MILLION IN ANNUAL TAXES. 
          AND I'M KIND OF WONDERING IF WE'VE CHECKED UP WITH OUR PARTNERS IN THE COMMERCIAL SECTOR, UM, AND KIND OF JUST SEEING WHERE THINGS ARE. 
          LIKE, YOU KNOW, ONE PLACE WHERE WE DON'T EVEN NECESSARILY HAVE TO REZONE IS IN ALEWIFE. 
          AND I'VE KIND OF WONDERED LIKE, DO WE KEEP UP WITH THE CONVERSATIONS WITH WHAT'S HAPPENING IN WHAT ALEWIFE AND HEALTH PEAK AND LIKE, YOU KNOW, I HAVEN'T SEEN MUCH START THERE AND WE CAN JUST ASSUME THAT LIKE, OH, IT'S JUST A TOUGH PLACE, BUT IT WOULD JUST BE GOOD TO HAVE THOSE CONVERSATIONS. 
          AND SO I'M JUST WONDERING IF THEY'VE BEEN HAD THAT MIGHT BE CDD OR THROUGH CITY MANAGER. 
          DOES ANYONE KNOW IF DCM WATKINS IS COMING TO THE TABLE, UM, THROUGH YOU CHAIR NOLAN? SO THERE HAVE DEFINITELY BEEN ONGOING AND CONSISTENT CONVERSATIONS WITH HEALTH PEAKS AND, YOU KNOW, THEY ARE STRUGGLING WITH THE MARKET, BUT THEY ARE CONTINUING WITH THE PERMITTING PROCESS. 
          SO I KNOW THAT THEY ARE IN CLOSE COORDINATION, UM, WITH BOTH CDD AND DPW ON PERMITTING PROCESS. 
          AND SO WE ARE ACTIVELY CONTINUING TO ACTIVELY ENGAGE WITH THEM. 
          GREAT. 
          UM, SO I GUESS MY QUESTION IS, LIKE, WHEN WE TALK ABOUT THE NEW GROWTH PROJECTIONS, IS SOME OF THAT HEALTH PEAK STUFF, UH, BAKED 
          [01:45:01]
INTO IT ALREADY? N NO, IT IS NOT. 
          UM, THERE AREN'T ANY PERMITS. 
          THEY HAVEN'T BROKEN GROUND. 
          THAT'S KIND OF WHAT WE WOULD BE LOOKING FOR ON THE ASSESSING SIDE IN ORDER TO START, UH, ADDING THIS INTO SOME OF THE NEW GROWTH PROJECTIONS. 
          SO NO, THERE'S, THERE'S NOTHING ON THAT BECAUSE WE'RE UNSURE WHEN THEY WERE ACTUALLY GOING TO START. 
          AND I THINK JUST TO ADD TO, UM, WHAT GAIL IS SAYING, I THINK THAT IS CONSISTENT WITH OUR CONVERSATIONS, WHICH IS THAT THEY ARE CONTINUING TO BE INTERESTED IN CAMBRIDGE AND WANNA CONTINUE THROUGH THE PERMITTING PROCESS AND MAKE SURE THAT THEY ARE IN A GOOD POSITION TO MOVE WHEN THAT MAKES SENSE FOR THEM TO MOVE. 
          THAT IS VERY DIFFERENT THAN HAVING A, WE'RE GONNA HAVE THIS MANY SQUARE FEET OF, UM, DEVELOPMENT COMPLETED IN A DATE THAT THEN GAIL COULD USE IN AN ACTUAL PROJECTION FOR TAX BASIS. 
          AND SO I THINK THAT IS A GOOD EXAMPLE OF WE'RE CONTINUING TO ENGAGE WITH THEM, CONTINUE TO WORK WITH THEM, AND WE WANT TO SEE THEM DEVELOP AND MOVE INTO CAMBRIDGE AND REALLY DEVELOP THAT SPACE. 
          BUT THERE IS A LITTLE BIT OF A GAP THERE BETWEEN THAT WORK AND THEN WHEN YOU ACTUALLY SEE IT ON THE ASSESSING SIDE. 
          COUNCIL AZI, THANK YOU CHAIR KNOWLEDGE. 
          UM, GREAT. 
          I THINK THAT THAT'S MY MAIN THOUGHT IS LIKE, AS LONG AS WE'RE CONTINUING TO ENGAGE THEM AND IF THEY HAVE ANY LIKE THING THAT WE CAN HELP TO JUST MAKE SURE THAT THOSE PERMITS ARE FILED, LIKE I THINK THAT THAT WILL IN SOME WAYS DRAMATICALLY EASE OUR BUDGET CONCERNS IF LIKE, YOU KNOW, THOSE PLANS THAT HAVE ALREADY BEEN SET FOR A LY PROCEED, UM, OF COURSE NOT EVERYTHING IS UNDER OUR CONTROL AND SOME OF IT IS JUST MARKET, BUT LIKE, UM, I THINK THAT THAT COULD BE PRETTY IMPACTFUL. 
          I JUST WANTED TO BRING UP THOSE TWO POINTS, BUT, UM, BESIDES THAT, I WOULD LIKE TO YIELD THANK YOU VICE MAYOR AND ANY OTHER FURTHER QUESTIONS? CITY ANY? I THINK WE'RE, WE'RE CLOSE TO THEN. 
          UM, SO THIS HAS BROUGHT US TO THE POINT WHERE WE'VE REVIEWED BASICALLY THE CONTEXT BY WHICH THE OPERATING BUDGET IS BEING SET SINCE FULLY MORE THAN 60% OF THE MONEY THAT COMES INTO THE CITY IS BASED ON OUR PROPERTY TAXES. 
          THAT'S WHY IT'S REALLY IMPORTANT TO UNDERSTAND AND HAVE A CONVERSATION ABOUT ASSESSING IN THE LEVY. 
          'CAUSE THAT IS, WITHOUT THAT WE WOULD NOT, UM,  WE WOULD LITERALLY NOT HAVE A CITY BUDGET. 
          SO THAT'S WHY WE'VE BEEN FOCUSED SOME ON, ON UNDERSTANDING THAT THOSE ELEMENTS. 
          THANKS SO MUCH FOR THE SETTING UP THE MEETING ON SATURDAY SO THE PUBLIC CAN UNDERSTAND SOME OF THIS. 
          AND I DON'T HAVE ANY OTHER CLOSING REMARKS. 
          UH, COCHAIR. 
          ZUBIE, DID YOU WANNA JUST TO THANK YOU AGAIN. 
          CITY MANAGER OR A CM SPINNER OR DIRECTOR WILLETT, OR DIRECTOR JENNINGS. 
          ANYTHING? ALL SET. 
          THANK YOU. 
          GREAT CONVERSATION. 
          THANK YOU ALL SO MUCH. 
          WE'VE GOT A LOT OF, A LOT MORE BUDGET MEETINGS TO GO, UH, IN THE NEXT, IN THE NEXT TWO MONTHS ON A MOTION BY, UH, CO-CHAIR ZUBI TO ADJOURN. 
          ROLL CALL TO RETURN OUR YES. 
          YES. 
          VICE MAYOR ZE. 
          WOULD YOU GET YES. 
          YES. 
          COUNCILOR FLAHERTY. 
          ABSENT. 
          COUNCILOR MCGOVERN? YES. 
          YES. 
          COUNCILOR NOLAN? YES. 
          YES. 
          COUNCILLOR SIMMONS. 
          ABSENT COUNCILLOR. 
          SABRINA WHEELER. 
          YES. 
          YES. 
          COUNCILLOR ZUEY. 
          YES. 
          YES. 
          MAYOR SIDIKI. 
          YES. 
          YES. 
          AND YOU HAVE SEVEN MEMBERS RECORDED IN THE AFFIRMATIVE AND TWO RECORDED IS ABSENT.
* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.