[0:12] . >> GOOD AFTERNOON. WELCOME TO THE REGULAR MEETING OF THE BOARD [0:20] OF ESTIMATE AND TAXATION FOR APRIL 23, 2025. MY NAME IS STEVE BRANDT AND I'M PRESIDENT OF THE BOARD. BEFORE WE BEGIN THE [0:26] MEETING I'D LIKE TO ASK THE CLERK TO REMIND US OF THE [0:31] PROTOCOL FOR SPEAKING SO THAT WE CAN ACCOMMODATE OUR CAPTIONERS. [0:38] >> I WANT TO OFFER A FRIENDLY REMINDER TO ALL MEMBERS, STAFF AND THE PUBLIC THAT THESE MEETINGS ARE BROADCAST LIVE TO [0:44] ENABLE GREATER PUBLIC PARTICIPATION. THESE BROADCASTS INCLUDE REAL-TIME CAPTIONING AS [0:50] A FURTHER METHOD TO INCREASE THE ACCESSIBILITY OF OUR PROCEEDINGS TO THE COMMUNITY. THEREFORE, ALL [0:55] SPEAKERS NEED TO BE MINDFUL OF THE RATE OF THEIR SPEECH SO THAT OUR CAPTIONERS CAN FULLY CAPTURE [1:01] AND TRANSCRIBE ALL COMMENTS FOR THE BROADCAST. WE ASK ALL SPEAKERS TO MODERATE THE SPEED [1:06] AND CLARITY OF THEIR COMMENTS. >> OKAY. AT THIS TIME I'LL ASK THE CLERK TO CALL THE ROLL SO [1:12] THAT WE CAN VERIFY THE PRESENCE OF A QUORUM. >> BOARD MEMBER FREY IS ABSENT. [1:22] ABENE. >> HERE. >> PAYNE. >> PRESENT. >> CHUGHTAI. [1:28] >> PRESENT. >> VICE PRESIDENT PROCEEDS [1:35] PREE-STINSON. >> PRESENT. >> THERE ARE FIVE MEMBERS PRESENT. >> ALL RIGHT. WE HAVE A QUORUM WITH US TODAY. AND I WILL NOW [1:41] OFFER AN ACKNOWLEDGEMENT THAT WE MEET TODAY ON THE LAND OF THE DAKOTA. WE'LL PROCEED NOW TO OUR [1:48] AGENDA. A COPY OFHICH WAS POSTED FOR PUBLIC ACCESS IN THE CITY'S LEGISLATIVE INFORMATION [1:55] MANAGEMENT SYSTEM, WHICH IS AVAILABLE AT [2:03] LIMS.MINNEAPOLISMN.GOV. BOARD MEMBERS, THE AGENDA FOR TODAY'S MEETING IS BEFORE US. MAY I HAVE A MOTION TO ADOPT THE AGENDA? [2:11] >> SO MOVED. >> SECOND. >> IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR SAY AYE. [2:17] >> AYE. >> OPPOSED. >> OKAY. THE AYES HAVE IT. THE AGENDA IS ACCEPTED. NEXT IS THE [2:25] ACCEPTANCE OF THE MINUTES. COULD I HAVE A MOTION TO ACCEPT THE MINUTES. >> SO MOVED. [2:31] >> SECOND. >> ALL RIGHT. WE HAVE A PROPER MOTION BEFORE US. ANY DISCUSSION? >> THE DATE YOU SAID WAS OFF. [2:36] YOU SAID THE LAST MEETING WAS JANUARY SOMETHING OR OTHER. BUT IT WOULD NOT HAVE BEEN IN [2:42] JANUARY. >> YES. THE DATE WOULD HAVE BEEN MARCH 26, 2025. [2:48] >> OKAY. I WOULD HAVE -- I WAS TRYING TO DO THE MATH IN MY HEAD. >> THAT'S OKAY. [2:53] >> OKAY. MARCH 26TH, 2025. DO WE HAVE A MOTION TO ACCEPT THE [2:59] MINUTES AND A SECOND? >> SO MOVED. >> DISCUSSION. ALL THOSE IN [3:05] FAVOR SAY AYE. >> AYE. >> OPPOSED SAY NAY. ALL RIGHT. THE NEXT IS RECEIVING OF PUBLIC [3:11] COMMENTS RELATED TO CURRENT BOARD BUSINESS. DO WE HAVE [3:18] ANYBODY SIGNED UP? ALL RIGHT. I JUST WANT TO REMIND THE PUBLIC THAT YOU HAVE THE OPPORTUNITY EACH MEETING TO COMMENT ON ANY [3:24] ITEMS THAT ARE ON THAT MEETING'S AGENDA. THAT'S IN ADDITION TO THE PUBLIC HEARING THAT WE HOLD [3:30] EACH SEPTEMBER WHEN WE ADOPT A MAXIMUM LEVY. ALL RIGHT. ITEM [3:36] NUMBER 5 IS TO RECEIVE THE CITY ASSESSORS ANNUAL ASSESSMENT REPORT. WELCOME TO THE [3:45] COMMITTEE. TO THE -- EXCUSE ME, TO THE BOARD. [4:05] >> GOOD AFTERNOON, PRESIDENT BRANDT AND MEMBERS OF THE BOARD [4:11] OF ESTIMATE AND TAXATION. GOOD AFTERNOON. I'M HERE TO PRESENT TO YOU THE 2025 ANNUAL [4:16] ASSESSMENT REPORT. THIS IS NOT PART TWO. IT IS ACTUALLY A REPEAT OF THE ASSESSMENT REPORT [4:22] THAT WAS PRESENTED TO BUDGET COMMITTEE EARLIER LAST MONTH. I DO HAVE ONE MEMBER OF MY TEAM [4:28] ROB WILLIAMSON WITH ME IN CASE THERE'S ANY QUESTIONS THAT YOU HAVE THAT ARE OUTSIDE OF MY SPAN [4:34] OF KNOWLEDGE THAT HE CAN ASSIST WITH. SO I'M GOING TO QUICKLY [4:39] MOVE IN. FIRST, A HIGH LEVEL SUMMARY AND REMINDERS ABOUT THE [4:45] ASSESSMENT. WE RECENTLY COMPLETED THE JANUARY 2025 [4:51] ASSESSMENT OF PRESENTLY 131,000 PROPERTIES ACROSS THE CITY. THIS IS AN ANNUAL PROCESS. [4:57] VALUE NOTICES WERE MAILED LAST MONTH. IT'S IMPORTANT TO REMIND EVERYONE THAT THE 2025 ESTIMATED MARKET VALUES ARE USED TO [5:06] CALCULATE NEXT YEAR'S 2026 TAXES. WE VALUE PROPERTIES IN ONE YEAR THEN THE BUDGET AND [5:12] LEVY ARE SET. AND TAXES ARE PAYABLE THE FOLLOWING YEAR. WE KNOW THIS CAN BE CONFUSING [5:17] BECAUSE PROPERTY TAX STATEMENTS ARE MAILED AT APPROXIMATELY THE SAME TIME AS -- TAX STATEMENTS [5:23] ARE MAILED AT APPROXIMATELY THE SAME TIME AS VALUE NOTICES. THE [5:30] PAYABLE NOTICES THAT PROPERTY OWNERS RECEIVE WERE CALCULATED USING 2024'S ASSESSED VALUE. THE [5:37] DATA THAT WE USE IS ALSO DICTATED BY THE STATE FOR THE JANUARY 22, 2025, ASSESSMENT, WE [5:44] ANALYZE MARKET BASE TRANSACTIONS THAT OCCUR BETWEEN OCTOBER 2023 AND SEPTEMBER OF 2024. IN [5:52] MINNESOTA, PROPERTY TAXES PROVIDE A SIGNIFICANT PORTION OF THE FUNDING FOR LOCAL GOVERNMENTS. PROPERTY TAXES ARE [6:00] THE MINNEAPOLIS GENERAL FUNDS LARGEST AND MOST FLEXIBLE SOURCE OF INCOME AND SUPPORT MANY OF [6:06] OUR CORE GOVERNMENTAL FUNCTIONS. EVERY PROPERTY'S SHARE OF TAXES IS BASED ON ITS MARKET VALUE, [6:13] PROPERTY USE AND LOCAL GOVERNMENT BUDGETS WHICH BECOME A TAX RIGHT. YOU CAN SEE THE [6:19] IMAGE AT THE BOTTOM OF THE SCREEN. SO MARKET VALUE IS THE PRICE A PROPERTY WOULD SELL FOR [6:26] ON THE OPEN MARKET. THE ASSESSOR'S ROLE IS TO SET FAIR [6:33] AND ACCURATE MARKET VALUES AND SETTING TRENDS. DIFFERENT USES [6:39] OF PROPERTY, EVEN IF THEY HAVE THE SAME VALUE, PAY DIFFERENT TAXES BECAUSE OF THE CLASS RATES [6:45] SET BY THE STATE LEGISLATURE. WE WILL PROVIDE AN EXAMPLE OF THAT FOR YOU IN A MOMENT. AND THE TAX [6:52] RATE IS DETERMINED USING THE BUDGETS OF LOCAL GOVERNMENT. THE [7:01] INTERMEDIARY STEP IN CONVERTING VALUES TO TAXES IS CALLED THE TAX CAPACITY. THIS SLIDE ILLUSTRATES HOW THIS WORKS FOR [7:08] SOME COMMON TYPES OF PROPERTIES IN THE CITY. THE CALCULATION FOR TAX CAPACITY IS THE MARKET [7:13] VALUE, WHICH IS IN THE SECOND COLUMN MULTIPLIED BY THE CLASS RATE, WHICH IS IN THE THIRD [7:19] COLUMN. AS YOU CAN SEE HERE, A RESIDENTIAL PROPERTY AND COMMERCIAL PROPERTY ON THE BOTTOM LINE, IF THEY ARE BOTH [7:27] ASSESSED AT $300,000, THEY WILL PAY DIFFERENT TAXES. AND THAT IS BECAUSE THE CLASS RATE FOR [7:33] RESIDENTIAL PROPERTY IS 1%, AND THE CLASS RATE FOR COMMERCIAL PROPERTY IS 2%. AS A RESULT, [7:39] RESIDENTIAL PROPERTY WILL PAY APPROXIMATELY HALF THE PROPERTY TAXES OF A COMMERCIAL PROPERTY. I MUST NOTE THOUGH THAT THIS IS [7:46] A VERY SIMPLISTIC MODEL ILLUSTRATING TAX CALCULATION. IT EXCLUDES COMPLEX FACTORS LIKE [7:54] SPECIAL PROGRAMS LIKE HOME [8:00] HOMES HOMESTEADING, FISCAL DISPARITIES. THIS SLIDE IS A HISTORICAL VIEW OF THE MARKET [8:06] VALUE. THE OVERALL ESTIMATED MARKET VALUE FOR THE CITY DECREASED TO $64.8 BILLION THIS [8:13] YEAR. THIS DOES NOT INCLUDE UTILITIES AND RAILROAD WHICH ARE ASSESSED BY THE STATE BECAUSE [8:18] THOSE VALUES DON'T BECOME AVAILABLE UNTIL THE SUMMER. THIS DOES INCLUDE NEW CONSTRUCTION [8:24] ADDED FOR PERMITTED WORK TOTALING APPROXIMATELY [8:30] $700 MILLION THIS YEAR. THIS SLIDE IS A VISUALIZATION OF THE [8:36] BREAKDOWN OF THREE CATEGORIES BY THEIR 2025 TOTAL MARKET VALUE. ON THE LEFT. AND THEN THEIR TAX [8:41] CAPACITY IS THE BAR ON THE RIGHT. BECAUSE OF THE CALCULATION OF VALUED TAX [8:47] DISCUSSED ON THE PREVIOUS SLIDE, THERE'S A CHANGE IN THE DISTRIBUTION BETWEEN THE THREE CATEGORIES WHEN WE MOVE FROM MARKET VALUE ON THE LEFT TO TAX [8:53] CAPACITY ON THE RIGHT. YOU CAN SEE HERE THAT RESIDENTIAL VALUES [8:58] IN GREEN COMPRISE OVER 62% OF THE TOTAL CITY MARKET VALUE. HOWEVER, WHEN THE CLASS RATES [9:04] ARE APPLIED, THE RESIDENTIAL PORTION OF TAX CAPACITY IS JUST [9:09] OVER 53%. YOU CAN ALSO SEE THAT THE COMMERCIAL VALUE IN BLUE [9:14] COMPRISES JUST OVER 16% OF THE TOTAL MARKET VALUE THE CITY [9:19] COMPRISES ALMOST 27% OF THE TAX CAPACITY AFTER THE RATES HAVE [9:25] BEEN APPLIED. THIS HISTORICAL VIEW OF THE TAX CAPACITY AS A PERCENTAGE OF THE TOTAL TAX [9:31] CAPACITY BY PROPERTY TYPE. SO IF WE COMPARE 2024 TO 2025, THE TWO BARS ON YOUR FURTHEST RIGHT, YOU [9:37] CAN SEE THE YEAR-TO-YEAR SHIFT BETWEEN COMMERCIAL, APARTMENT, AND RESIDENTIAL PROPERTIES. IT'S [9:43] JUST OVER 1% FROM COMMERCIAL TO RESIDENTIAL WITH APARTMENT REMAINING CONSTANT. HOWEVER, [9:49] THIS MEANS THAT RESIDENTIAL PROPERTIES WILL BEAR A GREATER BURDEN OF THE TAXES PAYABLE IN [9:54] 2025 THAN THEY DID IN 2024. THIS [10:00] SLIDE ILLUSTRATES THE CHANGE IN TOTAL MARKET VALUE BY WARD. EACH WARD IS REPRESENTED BY A BAR AND [10:07] THEN THE PERCENT OF INCREASE OR DECREASE IS LABELED AT THE END [10:13] OF EACH BAR. WARD 7 SAW A DECREASE OF JUST OVER 8%. AND [10:20] THREE OTHER WARDS SAW A DECREASE AS WELL. THE REST SAW INCREASES. THIS IS TOTAL EMV OF ALL [10:27] PROPERTY TYPES, NOT JUST RESIDENTIAL. THIS IS A HIS [10:36] HISTORICAL LOOK. MARKET VALUE INCREASED BY 2.6%. LAST YEAR MARKED THE FIRST TIME IN MANY YEARS THAT WE'VE SEEN A DECREASE [10:43] IN OVERALL RESIDENTIAL VALUE. AND WE HAVE SEEN A SMALL REBOUND [10:49] SINCE THEN. WHILE THE PREVIOUS SLIDE ILLUSTRATES AN OVERALL [10:54] VALUE INCREASE FOR RESIDENTIAL PROPERTIES, THIS SLIDE FURTHER BREAKS DOWN THE DATA INTO THREE [11:00] MAJOR PROPERTY TYPES. CONDOMINIUM TOWN HOME, DUPLEX, [11:06] TRIPLEX, AND SINGLE FAMILY CATEGORY. INCREASES IN EACH OF THESE THREE SUBMARKETS. AND [11:11] $118 MILLION ADDED IN NEW CONSTRUCTION. ON TO COMPLIANCE. [11:16] OUR ASSESSMENT IS CLOSELY SCRUTINIZED BY THE STATE TO [11:22] ENSURE ACCURACY AND EQUITY. WE FOLLOW REQUIREMENTS MANDATED BY THE STATE WHICH ARE BASED ON THE [11:28] INTERNATIONAL ASSOCIATION OF ASSESSING OFFICERS STANDARDS ON SALES RATIOS, AND STANDARDS ON [11:36] MASS APPRAISAL. THE ANALYSIS IS PROPERTIES THAT HAVE SOLD SO THAT WE CAN COMPARE OUR ASSESSED VALUES TO WHAT THEY ARE SELLING [11:42] FOR TO ANALYZE HOW ACCURATE AND EQUITABLE THE VALUES ARE IN [11:47] COMPARISON TO SALE PRICES. THE FIRST ASSESSMENT I WILL REVIEW IS THE SALES RATIO, WHICH IS THE [11:55] THIRD COLUMN. IT IS A COMPARISON OF THE MARKET VALUE TO THE SALE PRICE OF PROPERTIES. SIMPLY [12:00] STATED, IT'S THE SALE PRICE DIVIDED BY THE MARKET VALUE. AND WE USE THE MEDIAN RATIO AS THE [12:07] MEASURE OF CENTRAL TENDENCY IN OUR WORK. SO LOOKING AT THE BOTTOM ROW OF THE 3,645 SALES, [12:15] WE HAD A MEDIAN RATIO OF 95.4%. [12:25] WE ALL TYPICALLY LOOK FOR MEDIAN OF AROUND 95%. WE DON'T WANT TO [12:31] BE AT A SIGNIFICANTLY DIFFERENT ASSESSMENT LEVEL THAN OTHER JURISDICTIONS BECAUSE THAT CAN [12:37] PRESENT SOME TAX INEQUITIES. [12:42] MOVING ON THEN TO THE SECOND MEASURE IS THE COEFFICIENT OF DISPERSION OR THE COD. IT [12:50] MEASURES THE UNIFORMITY OF THE ASSESSMENT. HOW FAR AWAY ALL THE RATIOS OR THE SALES ARE FROM [12:58] THAT 95.4%. WE DEFINITELY MEET [13:04] THIS REQUIREMENT. AND THE LAST MEASURE WE'RE GOING TO LOOK AT IS THE PRICE RELATED DIFFERENTIAL, THE PRD. IT IS [13:10] CRITICALLY IMPORTANT TO OUR WORK BECAUSE IT MEASURES THE VERTICAL EQUITY OF OUR ASSESSMENT. SO [13:16] WHEN LOW VALUED PROPERTIES ARE VALUED AT A GREATER PERCENTAGE OF MARKET VALUE THAN HIGH VALUED [13:23] PROPERTIES, OUR ASSESSMENT WOULD BE CONSIDERED AGGRESSIVE. -- THE [13:31] ASSESSMENT WOULD BE CONSIDERED PROGRESSIVE. BUT FOR TAX PURPOSES, WE DON'T WANT IT TO BE [13:38] REGRESSIVE OR PROGRESSIVE. SO WE MAKE SURE IT IS IN AN ACCEPTABLE [13:46] RANGE, AND IT IS. THIS IS A HISTORICAL LOOK AT THE REQUIRED STATISTICAL MEASUREMENTS THAT [13:51] OUR ASSESSMENT IS JUDGED ON FOR ACCURACY AND EQUITY. IT'S IMPORTANT TO POINT OUT THAT WE [13:57] HAVE SEEN A DRASTIC DECREASE IN SALES VOLUMES SINCE THE PEAK IN [14:03] 2022. THE SALES IS ACTUALLY A DECREASE OF 45%. WE HAVE A LITTLE LESS DATA TO RELY ON TO [14:10] RESET THE ASSESSMENT. IT WAS NOT THE STRONG SELLERS MARKET THAT WE HAVE SEEN IN THE PAST. THIS [14:21] ILLUSTRATES THE COMPARISON OF THE MEDIAN SALE PRICE IN BLUE TO THE MEDIAN MARKET VALUE IN [14:27] ORANGE. THESE LINES SHOULD BE CLOSE TOGETHER AND GOING IN THE SAME DIRECTION. AND YOU CAN SEE [14:33] HERE THAT THIS MEASURE IS WITHIN STANDARDS AND IS ACCEPTABLE AS WELL. OUR MEDIAN MARKET VALUE [14:39] DID INCREASE BY 3.2%. WHEN WE BREAK DOWN THE CHANGES FOR [14:44] RESIDENTIAL PROPERTIES AS FAR AS HOW MUCH BY PERCENTAGE THEIR VALUES ARE GOING TO INCREASE OR [14:51] DECREASE, IF YOU LOOK AT THE ORANGE BAR NEARLY 45% OF THE PROPERTIES, RESIDENTIAL [14:56] PROPERTIES IN THE CITY ARE GOING TO SEE AN INCREASE FROM ZERO TO 5%. THIS IS A MAP OF OUR SINGLE [15:09] FAMILY PROPERTIES WITH THE CODING TO INDICATE HOW MUCH CHANGES THERE WAS FOR EACH. IT'S [15:15] JUST A VISUAL DEMONSTRATION OF THE DATA THAT WE LOOKED AT PREVIOUSLY. THIS IS A WARD [15:24] COMPARISON OF THE RESIDENTIAL VALUES, AND THE SAME STATISTICAL MEASURES THAT WE DISCUSSED [15:30] EARLIER. THE COLUMNS TO THE LEFT ARE THE 2024 AND 2025 TOTAL MARKET VALUES. THE AMOUNT OF NEW [15:36] CONSTRUCTION AND THE NET CHANGE IN THE TOTAL VALUE. MOVING ACROSS THE CHART IS ALSO THE [15:42] MEDIAN MARKET VALUE, NUMBER OF SALES, MEDIAN SALE PRICE AS WELL [15:47] AS THE COD. WHAT I WANT TO MENTION HERE IS THE RANGE OF [15:53] SALES RATIOS ON THE FAR SECOND TO THE FAR RIGHT COLUMN IS THAT WE RANGE FROM 95 TO 95.9. IT [16:00] INDICATES THE LEVEL OF ASSESSMENT ACROSS THE CITY IS QUITE CONSISTENT FROM WARD TO [16:06] WARD. PIVOTING TO THE COMMERCIAL [16:14] MARKET. IF WE SEPARATE THE COMMERCIAL FROM THE INDUSTRIAL, YOU CAN SEE AN OVERALL DECREASE OF 3.5%. IN THE COMMERCIAL [16:25] MARKET, 8.6% IN THE COMMERCIAL MARKET. SORRY. AND THEN 2.1% INCREASE FOR THE INDUSTRIAL [16:31] MARKET WITH AN OVERALL DECREASE OF 5.5%. THIS IS A HISTORICAL [16:39] LOOK AT THE COMMERCIAL INDUSTRIAL MARKET VALUES. YOU CAN SEE HERE THE DECREASE THAT WE SAW DOWN TO $11.5 BILLION [16:48] PUTTING US MORE IN LINE WITH VALUES IN 2019. TO TELL A MORE [16:58] COMPLETE STORY, THOUGH, WE HAVE BROKEN DOWN THE MARKETS IN THE [17:03] GEOGRAPHICAL SUBMARKETS. THIS SLIDE SEPARATES DOWNTOWN ON THE FAR LEFT FROM UPTOWN. THE NEXT [17:09] BAR OVER, THE COMMERCIAL MARKET OUTSIDE OF DOWNTOWN AND UPTOWN. AND THEN THE INDUSTRIAL MARKET [17:16] OVERALL. SO YOU CAN SEE HERE WE ARE STILL SEEING OVERALL DECREASES IN THE DOWNTOWN [17:21] MARKET, AND A SLIGHT DECREASE IN UPTOWN COMMERCIAL MARKET. [17:29] REVIEWING THE STATISTICS, WE ARE ALL WITHIN THE ACCEPTABLE RANGES [17:34] FOR ALL OF THESE MEASUREMENTS. AND WE'RE GOING TO GO TO THE [17:42] APARTMENT MARKET. APARTMENT SAW A NET DECREASE OF 3.4%. THERE [17:49] WAS STILL $479 MILLION ADDED IN NEW CONSTRUCTION. AND OUR [17:56] STATISTICS ARE WELL WITHIN THE ACCEPTABLE RANGE HERE. MOVING ON TO NOTICES. NOTICES WERE MAILED [18:03] MARCH 14TH. SO THEY HAVE BEEN IN THE MAILBOXES FOR QUITE SOME TIME. THEY ARE HIGHLIGHTED IN GOLD THIS YEAR. SO TAX [18:10] STATEMENTS FOR NEXT YEAR THAT ALIGN WITH THIS YEAR'S VALUE WILL BE COLOR CODED IN GOLD. [18:15] ANYTHING ELSE I WANTED TO SHARE WITH YOU HERE, I DON'T BELIEVE SO. THESE ARE SOME OF THE TOOLS [18:22] THAT WE MAKE AVAILABLE TO PROPERTY OWNERS, AND CITY LEADERSHIP. PEOPLE CAN LOOK UP [18:28] SALES WITHIN THEIR NEIGHBORHOODS. THEY CAN LOOK AT WHAT'S HAPPENING OVERALL WITHIN [18:34] TRENDS. IN OUR MARKET VALUES. AND THEN WE CREATE THE LEVY [18:39] IMPACT ESTIMATOR ALONG IN PARTNERSHIP WITH FINANCE. AND SO WE WILL BE WORKING ON THAT FOR [18:46] BOTH THE MAYOR'S USE, LEGISLATIVE USE, AND BOARD OF [18:52] ESTIMATE AND TAXATION'S USE AS WELL THIS YEAR. JUST SOME DATES. [18:58] VALUE NOTICES THROUGHOUT THE LOCAL BOARD CONVENED LAST YEAR. [19:04] SO ALL THE PROPERTY THAT QUALIFIED FOR THE LOCAL BOARD ALSO QUALIFY TO GO TO THE [19:10] HENNEPIN BOARD OF APPEAL IN JUNE. OUR STAFF WILL CONTINUE TO WORK ON THOSE APPEALS AS THEY [19:15] NEED TO BE HEARD. PRESIDENT BRANDT, WITH THAT, THAT CONCLUDES MY PRESENTATION FOR YOU THIS EVENING. [19:25] >> ALL RIGHT. COMMISSIONER PAYNE. >> THANK YOU, PRESIDENT BRANDT. [19:31] I JUST SPOKE WITH A CONSTITUENT EARLIER THIS WEEK AND THEY [19:37] RECENTLY MOVED TO THE CITY, AND I THINK THEY'VE ONLY HAD ABOUT THREE ASSESSMENTS SINCE THEY'VE LIVED IN MY WARD. THEY SAID EACH [19:43] TIME THEY FELT IT WAS OVER VALUED, THEY APPEALED AND THEY WON THAT APPEAL AND GOT THEIR [19:49] ASSESSMENT LOWERED. AND I WAS CURIOUS IF, YOU KNOW, THIS IS JUST ANECDOTAL OR AS WE'RE [19:55] LOOKING AT THE PRD IF THERE'S [20:00] ANY OTHER MAYBE WARD SPECIFIC, GEOGRAPHIC SPECIFIC ELEMENTS THAT MIGHT BE HAPPENING. THEY [20:06] HAPPEN TO LIVE IN THE STINSON TRIANGLE WHICH SEEMS LIKE A UNIQUE CORNER OF MY WARD. I'M [20:12] CURIOUS IF THERE'S ANY INSIGHTS THERE OR PURELY ANECDOTAL. [20:19] >> PRESIDENT BRANDT, MEMBER PAYNE, VERY GOOD QUESTION. WE [20:25] ANECDOTALLY HEAR THE SAME THING. WHAT HAPPENS WHEN PEOPLE CALL AND TALK TO US ABOUT THE MARKET VALUE, IT'S THE FIRST STEP IN [20:30] THE APPEALS PROCESS. THE APPRAISAL THAT'S SPECIFICALLY RESPONSIBLE FOR THEIR PROPERTY [20:37] SO THEY HAVE A ONE ON ONE CONTACT TO TALK TO SPECIFICALLY [20:44] ABOUT THEIR PROPERTY. THEY WILL GO OUT AND INSPECT IT AS THEY NEED TO. THEY'LL DO THEIR MARKET ANALYSIS. IF THEY DETERMINE THAT [20:49] IT SHOULD BE DECREASED, IF OUR MODEL IS NOT WORKING FO ARE THAT PROPERTY, THEY HAVE THE OPPORTUNITY TO MAKE THAT [20:56] ADJUSTMENT. THAT'S WHY WE HAVE THE REVIEW PERIOD AND THE APPEALS PERIOD. WHAT WE DON'T [21:02] REPORT ON A LOT IS ABOUT THE APPEALS THAT ARE ADDRESSED BY STAFF IN THE BEGINNING VERSUS THE APPEALS THAT HAVE TO MAKE IT [21:08] ALL THE WAY THROUGH THE APPEALS PROCESS. MOST OF THE CASES ARE RESOLVED AT THE STAFF LEVEL. BUT [21:15] I WILL TELL YOU THAT OUR RESIDENTIAL MODEL THAT'S BUILT FOR THE 90,000 PARCELS, [21:20] RESIDENTIAL PARCELS IN THE CITY, IT CAN'T BE CORRECT FOR ALL OF [21:26] THEM. THERE ARE OBVIOUSLY GOING TO BE POCKETS IN THE CITY THERE ARE GOING TO BE UNIQUE. PROPERTIES THAT HAVE UNIQUE [21:32] IDENTIFIERS SUCH AS BEING HISTORICAL OR THINGS LIKE THAT WHERE OUR MODEL CAN'T NAIL EVERY [21:38] PROPERTY CORRECTLY AT 100% EVERY TIME. SO IT IS TRUE THAT WE MAY HAVE PROPERTIES THAT WE HAVE MAY [21:46] SEEN SOME ISSUES IN THEIR VALUATION AND THEY BRING IT TO OUR ATTENTION AND WE MAKE THE [21:51] CORRECTION. WE TRY TO IMPLEMENT THAT INTO OUR MODEL GOING FORWARD SO THAT IT CAN BE ADJUSTED AND TAKEN CARE OF IN [21:57] THE FUTURE. >> THAT'S REALLY HELPFUL. THANK YOU. >> YOU'RE WELCOME. >> COMMISSIONER ABENE. [22:02] >> THANK YOU, PRESIDENT BRANDT. I THINK ONE OR TWO SLIDES BACK YOU MENTIONED THERE WAS SOME KIND OF A TOOL THERE. THAT WAS [22:10] USEFUL FOR THE PUBLIC OR IS THIS USEFUL INTERNALLY? AND COULD YOU DESCRIBE WHAT THAT IS, BUT ALSO, [22:16] HOW DOES YOUR OFFICE WORK THEN WITH THE FINANCE DEPARTMENT TO MAKE SURE THAT YOUR METRICS -- [22:22] BECAUSE OBVIOUSLY YOU DON'T JUST TAKE WHAT YOU GET FROM THE PRIOR WHAT WAS APPROVED, AND THEN RUN YOUR CALCULATIONS. YOU MUST BE [22:27] ALSO WORKING WITH THE FINANCE OFFICE TO SAY THIS WOULD HAVE -- WE'D HAVE A PROBLEM HERE WITH THIS MEASUREMENT OR METRIC. [22:36] SO -- >> PRESIDENT BRANDT AND MEMBER, [22:41] AS FAR AS WORKING WITH FINANCE, WE WORK WITH FINANCE IN ADVANCE [22:46] TO ADDRESS CONCERNS THAT WERE SEEN IN THE MARKET. FOR EXAMPLE, LAST YEAR WE KNEW THAT WE WERE [22:51] GOING TO START SEEING SOME SHIFTS AND DECREASES. SO WE PREPARED FINANCE FOR THAT SO THEY CAN START TO THINK ABOUT [23:00] THAT WHEN THEY'RE DOING THEIR BUDGET WORK AS WELL. SO YES, WE DO HAVE A CLOSE PARTNERSHIP WITH [23:06] EITHER DUSHANI OR HER STAFF, LOOKING AT FOR THE CURRENT [23:12] ASSESSMENT. AND THEN THE TOOLS, WE HAVE PROPERTY INFO LOCATE ON THE WEBSITE WHERE PEOPLE CAN PUT [23:20] IN THEIR PROPERTY ADDRESS. WE STORE ALL THE PROPERTY DATA HERE AT THE CITY OF MINNEAPOLIS. BUT [23:27] ALSO IT PULLS LICENSING INFORMATION AND CPED. IT'S A ONE-STOP AREA FOR PEOPLE TO FIND [23:33] OUT EVERYTHING ABOUT THEIR PROPERTY THAT THE CITY DOES. WHEN THEY WANT TO GO TO THE TAX SIDE, THEY HAVE TO GO TO THE [23:39] COUNTY BECAUSE THE COUNTY SENDS STATEMENTS AND COLLECTS TAXES. ON THE TOP OF THIS CHART, IT IS [23:44] MORE OF AN INTERNAL FACING TOOL THAT WE USE IN THE SUMMER MONTHS. BUT WE DO MAKE IT [23:50] EXTERNALLY FOCUSED. THE LEVY ESTIMATOR, SO THAT PROPERTY OWNERS CAN GO IN AND SEE IF THE [23:55] LEVY IS ADJUSTED BY THIS MUCH, HOW WILL IT AFFECT PROPERTY [24:01] TAXES IN THE CITY. ON THE BOTTOM LEFT, WE HELP RESIDENTS FIND [24:07] COMPARABLE SALES. IF THEY COME TO THE BOARD REALLY PREPARED WITH COMPARABLE SALES AND INFORMATION ABOUT THE MARKET, IT [24:12] REALLY HELPS THE APPRAISER OR THE BOARD MAKE A DECISION MORE EFFICIENTLY AND EFFECTIVELY. THE [24:19] BOTTOM RIGHT HAND SIDE IS MORE OVERALL DATA THAT WE -- BOTTOM RIGHT HAND SIDE I THINK IS WHAT [24:24] I SAID, WHERE WE PROVIDE MORE HIGH LEVEL INFORMATION ABOUT EACH NEIGHBORHOOD WITHIN THE CITY. THANK YOU. [24:32] >> ARE THERE OTHER QUESTIONS? OKAY. I WOULD LIKE TO START WITH [24:37] JUST AN OBSERVATION. WE ALL KNOW THIS IS HAPPENING. BUT THE [24:43] NUMBERS LAY IT OUT AND THAT IS WE'VE GONE FROM A THIRD OF OUR [24:49] TAX CAPACITY BEING BORN BY COMMERCIAL AND INDUSTRIAL PROPERTY TO JUST OVER A QUARTER. THAT'S WHY THE HOMEOWNERS OUT [24:56] THERE ARE FEELING THE PAIN THEY'RE FEELING DESPITE MODEST INCREASES IN THEIR HOME VALUES. [25:05] THIS IS -- IF YOU LOOK BACK OVER FIVE YEARS, THIS IS THE FIRST [25:14] TIME I CAN REMEMBER APARTMENT, COMMERCIAL, INDUSTRIAL, AND [25:20] HOME, NEW CONSTRUCTION BEING AT THIS POINT. I KEEP TRACK BY [25:27] YEAR. THESE ARE BY FAR LOWER THAN IN PREVIOUS YEARS FOR NEW [25:33] CONSTRUCTION. DO YOU ATTRIBUTE THAT PRIMARILY TO STUBBORN INTEREST RATES? I KNOW THAT LAST [25:39] YEAR WAS ONE OF THE FACTORS. >> PRESIDENT BRANDT, THAT IS ONE OF THE FACTORS, DEFINITELY THAT [25:47] IS GOING INTO IT. BUT THERE ARE PLENTY OF OTHER FACTORS THAT GO [25:52] INTO WHY DEVELOPMENT IS OCCURRING OR NOT OCCURRING ACROSS THE CITY, AS YOU KNOW. >> MM-HMM. ALL RIGHT. AND THEN [25:59] THIS IS THE FIRST YEAR IN THE YEARS I'VE BEEN KEEPING TRACK THAT COMMERCIAL OUTSIDE OF [26:05] DOWNTOWN AND UPTOWN HAS GONE DOWN. IT'S VERY MARGINAL. BUT DO [26:11] YOU HAVE A SENSE OF WHAT'S HAPPENING THERE? ARE THOSE [26:16] HAVING A DRAG EFFECT ON THE REST OF THE CITY? THOSE SUBMARKETS. [26:21] >> PRESIDENT BRANDT, THE CBD DOES OPERATE SOMETIMES LIKE ITS [26:27] OWN ENTITY. HOWEVER, IT DOES, I MEAN, THERE ARE CARRYOVER EFFECTS TO THE SURROUNDING [26:34] NEIGHBORHOODS. >> OKAY. >> SO WE ARE NOT SURPRISED TO SEE THAT SOME OF THOSE NUMBERS TOOK A DECREASE, A SMALL [26:39] DECREASE AS WELL. >> OKAY. I NOTICED THAT THE 4TH WARD HAD ONE OF THE LARGER [26:47] INCREASES IN RESIDENTIAL NEW CONSTRUCTION. AND I HAVEN'T PROBABLY KEPT UP AS MUCH ON A [26:52] LOCALIZED LEVEL. BUT IS THERE A NEW DEVELOPMENT THERE OF SOME KIND THAT IS STIMULATING THAT? [26:59] >> PRESIDENT BRANDT, WE ARE STILL SEEING INCREASES IN THE AREAS OF THE CITY THAT ARE STILL [27:06] AAPPRECIATING IN VALUE. SO WHEN PROPERTY VALUE SIDE DECREASES BACK TO EITHER RECESSION OR THE [27:15] HOUSING CRISIS THAT WE HAVEN'T COME ALL THE WAY BACK FROM THOSE [27:21] NUMBERS. AND SO WHERE THERE'S STILL AFFORDABLE, WE'RE STILL SEEING INCREASES IN THOSE VALUES FOR SURE. [27:26] >> OKAY. COMMISSIONER ABENE HAS A QUESTION. >> YEAH. SORRY ABOUT THAT. JUST [27:33] A QUESTION JUST OCCURRED TO ME THAT I DON'T THINK WE'VE ASKED HERE SINCE I'VE BEEN SITTING UP [27:40] HERE WHEN WE HAVE YOUR PRESENTATION, WHICH IS INTERESTING, BY THE WAY. ARE YOU SEEING SIMILAR PROBLEMS WITH THE [27:47] COMMERCIAL INDUSTRIAL PROPERTY VALUATIONS IN SOME OF THE COMMUNITIES THAT SURROUND [27:53] MINNEAPOLIS THAT AREN'T BEDROOM COMMUNITIES? I'M THINKING OF MAYBE BLOOMINGTON. PLYMOUTH [27:59] MIGHT HAVE SOME. CITIES THAT HAVE FAIRLY ROBUST COMMERCIAL [28:05] INDUSTRIAL BASE. ARE THEY ALSO SEEING DECLINES? >> PRESIDENT BRANDT AND MEMBER, [28:10] THE SUBURBAN MARKETS AND THE DOWNTOWN MARKETS DO NOT MOVE AT THE SAME PACE IN THE SAME [28:18] DIRECTION ALL THE TIME. AND IT'S NOT UNUSUAL FOR US TO BE MOVING IN ONE DIRECTION AND THE SUBURBS [28:23] TO BE MOVING IN ANOTHER. OR AT THE SLOWER PACE, FOR EXAMPLE. I [28:28] BELIEVE IF MEMORY SERVES THOUGH THAT THE LARGER -- THE SUBURBS [28:34] WITH THE LARGER COMMERCIAL BASE ALSO SAW SOME DECREASES. I'D HAVE TO VERIFY THAT FOR YOU. [28:40] >> AT SOME POINT, AND MAYBE I NEED TO REQUEST THAT MAYBE WHEN [28:45] WE HAVE A PERSON THAT SUPPORTS. BUT I'D REALLY LIKE TO UNDERSTAND COMPARABLES. I FEEL [28:52] THAT IT'S MY IMPRESSION WE HAVE A FAIRLY SMALL INDUSTRIAL BASE IN MINNEAPOLIS, AND ULTIMATELY, [28:57] A PRETTY SMALL COMMERCIAL BASE IN SOME WAYS. OBVIOUSLY, THERE'S DOWNTOWN. BUT CONSIDERING THE [29:03] REST OF THE CITY, IT WOULD BE GOOD FOR ME TO UNDERSTAND SOME OF THOSE THINGS AND HOW WE STACK [29:08] UP AGAINST SIMILARLY SIZED CITIES AROUND THE COUNTRY. BECAUSE I THINK THIS IS A PRETTY [29:15] RESIDENTIAL CITY IN MANY WAYS. AND I THINK THIS IS THE NATURAL, YOU KNOW, THIS IS THE NATURAL [29:21] COURSE OF EVENTS WHEN YOU START TO LOSE YOUR COMMERCIAL BASE. AND THEN ALSO, JUST THE WAY IN [29:28] WHICH SOME OF THE COMMERCIAL BASES DISTRIBUTED THROUGH THE CITY. WE'VE GOT OUR DOWNTOWN. [29:34] YOU GUYS HAVE BEEN TRACKING UPTOWN FOR A WHILE. BUT THERE ARE OTHER PARTS OF THE CITY THAT [29:40] EMERGE MORE ROBUSTLY. MAYBE NORTHEAST. I'M NOT SURE. IT WOULD BE GOOD TO SORT OF HAVE [29:45] MORE VISUAL ON SOME PLACES WHERE THE CITY MIGHT BE GROWING COMMERCIALLY, NOT JUST DECLINING. SORT OF RAMBLING, BUT [29:51] THERE YOU GO. >> PRESIDENT BRANDT AND MEMBERS, WE ARE ABLE TO DO MORE ANALYSIS [29:56] IF YOU DID WISH FOR US TO LOOK AT OUR COMMERCIAL INDUSTRIAL TAX BASE AS COMPARED TO THE SUBURBAN [30:04] CITIES. HAPPY TO DO THAT. WE DO LOOK AT IT. IT'S JUST NOT SOMETHING I PRESENT TO YOU. I KIND OF FOCUS ON MINNEAPOLIS [30:10] HERE. BUT ALSO WOULD BE HAPPY TO HAVE ANOTHER CONVERSATION ABOUT MORE SPECIFICS ABOUT THE [30:15] COMMERCIAL OR INDUSTRIAL MARKET WITHIN THE CITY ITSELF AS WELL. >> IT WOULD GIVE SOME INSIGHT ON [30:21] WHETHER OR NOT PEOPLE ARE CHOOSING MINNEAPOLIS OR CHOOSING ANOTHER LOCATION IN HENNEPIN COUNTY OR NEAR MINNEAPOLIS I [30:27] THINK FOR BUSINESS INVESTMENT AND SO ON. THANKS. [30:34] >> COMMISSIONER CHUGHTAI. >> THANK YOU, MR. PRESIDENT. I REALLY APPRECIATE THIS [30:39] PRESENTATION. I RECALL WHEN YOU PRESENTED TO THE BUDGET COMMITTEE I BELIEVE YOU WERE ASKED A QUESTION POTENTIALLY BY [30:46] COUNCIL MEMBER RAINVILLE JUST AROUND, YOU KNOW, WHAT DOES THE FUTURE LOOK LIKE AND WHEN CAN [30:53] YOU ESTIMATE WHEN WE'LL SEE A REBOUND IN THAT COMMERCIAL INDUSTRIAL SECTOR. WHICH OF [30:59] COURSE IS AN IMPOSSIBLE QUESTION FOR ANYONE TO ANSWER REALLY. BUT I REMEMBER AT THAT TIME YOU TOLD [31:06] US A LITTLE BIT OF -- YOU SHARED SOME INSIGHT FROM A CONFERENCE [31:11] YOU HAD ATTENDED RECENTLY WITH PROFESSIONALS IN YOUR INDUSTRY. AND I WONDER IF YOU MIGHT RECALL [31:18] AND BE ABLE TO SHARE THAT WITH THE BOARD AS WELL. [31:24] >> YES. PRESIDENT AND MEMBERS, I DID MENTION SOMETHING THAT I HAD SEEN IN A PRESENTATION AND IT [31:31] WAS A PRESENTATION ABOUT METRO CITIES ACROSS THE UNITED STATES AND WHERE THEY ARE REACH [31:37] INDEPENDENTLY AT IN THE MARKET CYCLE. AND WHERE THEY -- HOW THEY RELATE TO EACH OTHER. AND [31:44] SO THE PRESENTATION THAT I SAW EARLIER THIS YEAR, SO IT WOULD HAVE BEEN JANUARY OR FEBRUARY, I [31:52] BELIEVE, WAS THAT MINNEAPOLIS WAS LIKE AT THE POINT WHERE WE'RE STARTING TO BUILD AGAIN. [31:57] AND SO THAT'S WHERE THIS SPECIFIC PERSON THAT'S A LOCAL [32:03] EXPERT, I WOULD SAY, THAT WAS HIS ANALYSIS IS THAT BASED ON THE MARKET INDICATORS THEY WERE [32:09] LOOKING AT, THAT'S WHERE MINNEAPOLIS IS AT IN THE CYCLE. THANK YOU. [32:15] >> OKAY. COMMISSIONER PREE-STINSON. >> I AM CURIOUS AND SPEAKING [32:22] ABOUT DATA AND THINGS WE MIGHT WANT TO LOOK AT. THE PERCENTAGE OF RESIDENTIAL THAT IS [32:27] NON-HOMESTEAD. AS WE KNOW THAT WHEN TAXES GO UP, THE PRICE OF RENT GOES UP FOR RENTERS. SO I'M [32:34] CURIOUS. I WOULD LIKE TO START HUMANIZING OUR RENTERS TO START LOOKING AT HOW MUCH OF THOSE [32:39] TAXES ACTUALLY DO COME FROM RENTERS. I'D BE CURIOUS ABOUT THAT INFORMATION. I THINK IT'S [32:46] IMPORTANT AND RELEVANT TO THIS BOARD AS WE START THINKING ABOUT WHAT THE MAXIMUM TAX LEVY IS. THOSE ARE SOME OF THE TYPES OF [32:52] THINGS THAT WE SHOULD START THINKING ABOUT BECAUSE THAT IS ALSO THE IMPACT. I WAS GOING TO SAY ON THE INDUSTRIAL FRONT OF [32:59] THINGS, WHILE NOBODY CAN PREDICT IT, I WOULD SAY THAT THERE HAS BEEN A LOT OF MOMENTUM, BUT MORE [33:06] SO RECENTLY ABOUT LIKE WHO THIS CITY IS AND WHAT THEY WANT. AND SO THE FOURTH WARD AND PART OF [33:13] THE FIFTH, NORTH MINNEAPOLIS, HAS LONG SUFFERED HISTORICAL HARM FROM INDUSTRIAL AND SOME COMMERCIAL BUSINESSES. AND SO I [33:20] WOULD BE, FOR EXAMPLE, NORTHERN MEADOWS. WE KNOW THAT FIGHT FOR A LONG TIME. AND FOLKS FROM [33:27] COMMUNITY ARE ACTUALLY ACTIVELY WORKING TO PURCHASE THAT. THERE ARE CHANGES HAPPENING WHERE OUR [33:32] COMMUNITY MEMBERS, THE ACTIVIST COMMUNITY, IF YOU WILL, ARE MAKING SOME GAINS IN THAT AREA. AND SO IT WILL BE INTERESTING TO [33:39] SEE WHAT THOSE TYPES OF THINGS CONVERT TO AND WHAT THE IMPACT IS ON THAT. WE CAN'T SAY YET. [33:45] BUT AS THOSE CONVERSIONS START TO HAPPEN INTO DIFFERENT TYPES OF SPACES, I'M CURIOUS WHAT THEY [33:51] GET CLASSIFIED AS AND THE IMPACT IT WILL HAVE. SO JUST SOME FUTURE. THANK YOU. >> ALL RIGHT. SEEING NO [33:58] FURTHER -- ONE MORE QUESTION. >> I'M SORRY. THANK YOU, PRESIDENT BRANDT. JUST TO CLARIFY THOUGH THAT I BELIEVE [34:05] THE INDUSTRIAL CATEGORY DOESN'T JUST MEAN HEAVY INDUSTRY OR DIRTY INDUSTRY. IT ALSO MEANS LIGHT INDUSTRIAL AND YEAH. OKAY. [34:10] THANK YOU. >> ALL RIGHT. THANK YOU. >> THANK YOU SO MUCH FOR THE [34:15] OPPORTUNITY. >> OKAY. SEEING NO FURTHER DISCUSSION, WE'LL MOVE ON TO THE [34:21] NEXT ITEM WHERE WE'LL RECEIVE AND FILE OUR PREVIOUS REPORT. ITEM 6 ON THE AGENDA IS A [34:29] DISCUSSION OF THE CITY CONTROLLER'S REPORT AND PRESENTATION ON QUARTER FOUR OF [34:36] 2024. THAT WILL BE LED BY GEORGE HARGROVE FROM THE CONTROLLER'S [34:41] OFFICE. WELCOME. >> THANKS, PRESIDENT BRANDT. [35:11] >> OKAY. THANKS AGAIN, PRESIDENT BRANDT AND THE BOARD OF ESTIMATE [35:18] AND TAXATION. GOOD TO SEE YOU ALL TODAY. THANKS FOR INVITING ME IN TO GIVE THE PRESENTATION [35:24] ON THE CITY'S FOURTH QUARTER AND FINAL REPORT FOR 2024. TO START [35:31] OFF WITH, JUST A COUPLE OF [35:39] POINTERS ABOUT THE REPORT HERE. THE INFORMATION IS ON AUDIT. WE [35:44] HAVE OUR AUDIT ONGOING RIGHT NOW BY THE OFFICE OF THE STATE AUDITOR. IT IS A POINT IN TIME [35:53] AS OF DECEMBER 31ST. WE HAD MOST OF THE -- ALMOST ALL OF WHAT WE [35:58] CALL PERIOD 12 TRANSACTIONS IN OUR SYSTEM. BUT WE DON'T HAVE ANY FINAL AUDIT ADJUSTMENTS OR [36:04] ANYTHING. BUT MOSTEVER THE OPERATIONAL DATA THAT I PRESENT TODAY SHOULD BE FINAL. AS I SAID [36:15] JUST A LITTLE DISCLAIMER AT THE END TO RECOMMEND THAT WE CONSULT [36:21] WITH, IF WE COULD, WITH THE DEPARTMENTS AND EVERYTHING IF THE REPORT IS GOING TO BE USED FOR TRANSFERS OR THINGS LIKE [36:27] THAT OR SPENDING DECISIONS. MOVING ON. IN TERMS OF THE [36:37] HIGHLIGHTS FOR 2024, WE HAVE I [36:43] THINK ONE OF THE MOST IMPORTANT THINGS THAT HAPPENED THIS LAST YEAR WAS ALL THREE MAJOR CREDIT [36:50] AGENCIES GAVE US A AAA BOND RATING. THAT INCLUDES MOODY'S [36:58] THAT SOLD LAST YEAR. IT REFLECTS WELL ON THE CITY OF MINNEAPOLIS. ANOTHER HIGHLIGHT IS OUR PARKING [37:04] AREA. THE REVENUES HAVE REBOUNDED FROM THE DEPTHS OF THE [37:11] PANDEMIC. UP ABOUT $5.3 MILLION [37:16] FROM 2023. PROPERTY TAXES WERE UNDER BUDGET BY ABOUT $23 MILLION OR SO FOR 2024. DUE [37:24] TO A HIGHER UNCOLLECTIBLE AMOUNT. HOWEVER, CONVERSELY FOR [37:29] OUR LOCAL SALES TAXES USED TO FUND THE DOWNTOWN ASSETS, THE [37:35] TARGET CENTER, THE CONVENTION CENTER. THEY'VE BEEN UP ALMOST [37:41] $9 MILLION, $10 MILLION SINCE 2023. OUR ARPA SPENDING, WHICH IS AMERICAN RESCUE PLAN ACT, WE [37:47] CLOSED THAT OUT IN NOVEMBER OF 2024. YOU'LL SEE THAT IN OUR [37:55] RESULTS. SOME OF THE CASH SPENDING AND BLAUNSS WENT DOWN AS WE TRANSFERRED THAT TO OUR [38:00] GENERAL FUND AT THE END OF LAST YEAR. MOVING ON. WE HAVE IN [38:08] TERMS OF OUR INVESTMENT PORTFOLIO, WE HAVE A VALUE OF [38:13] ABOUT 1.2 MILLION OR SO AS OF DECEMBER 31, 2024. A SLIGHT [38:23] DECREASE FROM LAST YEAR OR DECEMBER 31, 2023, AT THIS TIME. THIS IS THE CASH THAT BACKS UP [38:30] OUR CASH BALANCES IN ALL OF OUR FUNDS. IN ADDITION TO THAT, THE [38:37] CITY IS MEETING ITS FUND BALANCE FOR ALMOST ALL OF OUR FUNDS. THERE'S JUST A FEW THAT I WANTED [38:43] TO MENTION THAT ARE A LITTLE BIT BELOW OUR TARGETED AMOUNTS. THE FIRST ONE IS SELF INSURANCE. [38:52] $48 MILLION OR SO IN TERMS OF OUR NET POSITION BELOW THE BREAK EVEN POINT THAT WE LIKE TO SEE. [38:58] A LOT OF THAT IS DUE TO LIABILITIES THAT HAVE INCREASED. HOWEVER, THE CASH BALANCE HAS GONE UP QUITE A BIT. IT'S UP TO [39:07] ABOUT $275 MILLION NOW. SO ABOUT $10 MILLION MORE FROM THE LAST QUARTER. IT'S KIND OF WE ARE [39:14] LOOKING AT THE LIABILITIES NOW AND EXPECT TO MAKE FINAL ADJUSTMENTS FOR 2024 SHORTLY. [39:19] ANOTHER FUND THAT I MENTIONED IS THE FLEET SERVICES EQUIPMENT FUND. THIS IS ABOVE THE TARGET [39:28] RIGHT NOW. BUT OUR PROJECTIONS SHOW IT MAY GO BELOW IT. IT'S ONE WE'RE WATCHING AND WORKING [39:34] WITH FLEET SERVICES ON. IN TERMS OF THE PARKING FUND, THAT IS [39:41] BELOW THE CASH BALANCE TARGET THAT WE HAVE IN OUR FINANCIAL POLICIES. HOWEVER, IT HAS GONE [39:49] UP BY ABOUT $2 MILLION SINCE [39:54] 2023. BUT STILL HAS A WAYS TO GO TO MEET TARGET. BASED ON THE LATEST PROJECTIONS, WE SHOULD [40:00] REACH THAT AT SOME POINT POSSIBLY THIS YEAR OR NEXT YEAR AT SOME POINT IF OUR PROJECTIONS [40:07] PAN OUT. AS OUR PARKING REVENUE HAS REBOUNDED, ESPECIALLY THE [40:12] OFF STREET PARKING RAMPS. AND THEN FINALLY PROPERTY SERVICES ABOUT $900,000 BELOW THEIR CASH [40:21] RESERVE TARGET ABOUT $3.9 MILLION. MOVING ON TO OUR BIGGEST FUND. THIS IS OUR [40:27] GENERAL FUND. THIS KEEPS TRACK OF ALL OF OUR RESOURCES EXCEPT ONES THAT ARE REQUIRED TO BE IN [40:32] ITS OWN FUND AND THOSE ARE GENERALLY INTERNAL SERVICE OR [40:38] ENTERPRISE OR SPECIAL REVENUE FUNDS THAT HAVE RESTRICTIONS ON IT. YOU CAN SEE OUR CASH HAS GONE UP A LITTLE BIT FROM THE [40:44] END OF 2023 BY ABOUT $3 MILLION OR $4 MILLION OR SO. I THINK THE NEXT BULLET POINT HERE IS KIND [40:52] OF ONE I SAY TELLS THE PICTURE OR SUMMARY OF HOW THE CITY IS DOING. YOU CAN SEE OUR FUND BALANCE AT THE END OF 2023 WAS [41:00] ABOUT $210 MILLION. NOW IT'S ABOUT $209 MILLION. SO IT'S BASICALLY WE'VE MAINTAINED THE [41:06] STATUS QUO. IT'S BEEN VERY STABLE. FOR THE LAST YEAR, WE HAVEN'T GOTTEN A LOT -- WE [41:12] HAVEN'T HAD A LOT OF INCREASES OR DECREASES. AGAIN, IT REFLECTS THE STABILITY OF THE LAST YEAR. [41:17] IT DOES EXCEED OUR 17% OF THE NEXT YEAR'S BUDGET. SO THAT [41:23] COMES TO ABOUT $112.7 MILLION. [41:30] WE'RE ABOUT $96 MILLION ABOVE OUR FUND BALANCE TARGET. PLANNED USE OF FUND BALANCE OF ABOUT [41:36] $24 MILLION, $25 MILLION IN 2025. WE ALSO RECEIVED APPROVAL [41:41] FROM THE CITY COUNCIL LAST WEEK TO ROLL OVER ABOUT LESS THAN $24 MILLION. THAT WILL COME OUT [41:49] OF THE FUND BALANCE. BOTH THOSE THINGS. WE ALSO HAVE ABOUT ANOTHER $15 MILLION OR SO OF PUBLIC SAFETY AID WHICH IS [41:55] RESTRICTED. SO THAT'S ALSO IN THERE. SO ROUGHLY WE HAVE ABOUT [42:02] 21% OF OUR PROPOSED 2025 BUDGET. AND IF YOU FACTOR IN ALL THE RESTRICTIONS AND THE MONEY WE [42:08] HAVE TO SAVE TO MEET THE USE OF THE FUND BALANCE AND THE ROLLOVERS, WE GOT ABOUT [42:13] $27 MILLION LEFT BEFORE WE WOULD REACH THE TARGET AMOUNT OR THE MINIMUM AMOUNT. I CAN ILLUSTRATE [42:22] THAT A LITTLE BIT MORE ON THIS SLIDE HERE. YOU CAN SEE WE START WITH OUR $209 MILLION IN FUND [42:27] BALANCE THAT WE HAD AT THE END OF 2024. AND THEN WE HAVE OUR [42:33] PLANNED USE OF FUND BALANCE BOTH FOR PUBLIC SAFETY AID AND NON-PUBLIC SAFETY AID. SO THAT'S [42:39] ABOUT $24 MILLION OR SO. AND THEN WE HAVE ROLLOVERS AS WELL, ABOUT $10 MILLION IN PUBLIC [42:45] SAFETY AID, AND ABOUT $32 MILLION IN NON-PUBLIC SAFETY AID. IN ADDITION, WHAT'S NOT IN [42:51] THE BUDGET IS THE NORTH COMMONS PARK. BUT THAT IS BEING [42:57] RESERVED. THAT WAS FORMERLY ARPA FUNDS. IF YOU DO THE MATH, WE HAVE ABOUT $140 MILLION OR SO [43:04] UNRESTRICTED. AND WE NEED TO HAVE AT LEAST $112 MILLION, [43:12] $113 MILLION OR SO. LOTS OF UNKNOWNS. WE ALL FOLLOWED THE [43:19] NEWS LATELY, FUNDS ARE AN ISSUE I'LL SPEND SOME TIME ON. WE MAY USE MORE OF THE FUND BALANCE [43:25] POSSIBLY IN OUR NEXT YEAR'S BUDGET IN '26. SELF-INSURANCE. [43:30] THAT'S STILL BELOW TARGET. ALSO THERE'S BEEN QUITE A BIT OF MARKET ECONOMIC SWINGS LATELY. [43:37] WE DO WORRY ABOUT THE POTENTIAL OF TARIFFS INCREASING COSTS OR OTHER INFLATIONARY THINGS THAT [43:43] MAY RESULT IN OUR BUDGET NOT GOING QUITE AS FAR. SO JUST [43:48] LOOKING AT A LITTLE BIT OF OUR SPENDING IN A LITTLE BIT MORE DETAIL ON REVENUES. YOU COULD [43:55] SEE WE FINISHED ABOUT $40 MILLION UNDER BUDGET IN OUR [44:00] REVENUES. MOST OF THAT WAS IN PROPERTY TAX, AS WELL AS STATE AID. THE STATE AID REALLY IS THE [44:05] BIG CONCERN BECAUSE THAT WAS MONEY WE THOUGHT WE WERE ORIGINALLY BUDGETED TO GET. BUT [44:13] WE ACTUALLY GOT IT IN DECEMBER OF '23. THAT'S WHY THAT WAS [44:18] UNDERSTAND. OTHERWISE, MOST OF THE CATEGORIES, FRANCHISE FEES, [44:23] LICENSES, OTHER REVENUE, ARE VERY CLOSE TO BUDGET FOR THE YEAR. THEN IN TERMS OF THE RATE [44:29] OF OUR SPENDING, LIKE I SAID, WE [44:34] FINISHED UNDER BUDGET BY ABOUT $40 MILLION. YOU COULD SEE THAT IT WASN'T SOMETHING THAT JUST [44:40] OCCURRED IN ONE QUARTER. WE WERE A LITTLE SHORT EACH QUARTER AND IT GREW JUST A LITTLE BIT EACH [44:45] YEAR -- EACH QUARTER, I SHOULD SAY. SO WE GOT ABOUT 94% OF THE [44:52] BUDGET. NORMALLY WE WOULD HAVE 102% OF THE BUDGET. IN TERMS OF [44:58] OUR EXPENDITURES, THIS ONE KIND OF CATEGORIZES OUR SPENDING AMONG THE VARIOUS AREASEVER THE [45:08] CITY. YOU COULD SEE WE -- PROVIDED FUNDING FOR THIS YEAR'S BUDGET. YOU COULD SEE MOST OF [45:16] OUR SPENDING OF COURSE IS IN PUBLIC SAFETY. YOU COULD SEE MOST OF THE UNDER SPENDING WAS [45:22] IN THE CPED, OUR DEVELOPMENT AREA. AS WELL AS INTERNAL SERVICES. THE MAIN REASON WHY [45:28] INTERNAL SERVICES WAS UNDER BUDGET IN SPENDING WAS BECAUSE WE HAD MONEY FOR PUBLIC SAFETY [45:35] AID IN NORTH COMMONS PARK BUDGETED THERE AS A HOLDING AREA FOR THE CITY UNTIL THE COUNCIL [45:45] REAPPROPRIATED THAT IN OTHER AREAS. WE'RE STILL GOING IN 2025. IN TERMS OF THE RATE OF [45:51] OUR EXPENDITURES, YOU COULD SEE WE WERE UNDER BUDGET BY ABOUT [45:57] 10-11%. WE SPENT ABOUT 89% OF OUR BUDGET. YOU COULD SEE JUST LIKE REVENUE KIND OF OCCURRED [46:03] FAIRLY EVENLY. ESPECIALLY FROM AFTER THE FIRST QUARTER ON. AND SO WE'LL BE WATCHING THAT AS WE MOVE INTO THE SECOND QUARTER [46:12] HERE IN 2025. NORMALLY, WE WOULD HAVE SPENT ABOUT 94% OF OUR [46:18] BUDGET. MOVING ON TO OTHER FUNDS THAT ARE OUTSIDE OF THE GENERAL [46:24] FUND. THESE ARE SPECIAL REVENUE FUNDS. AGAIN, THESE FUNDS HAVE TO BE -- THEY HAVE RESTRICTIONS [46:29] ON THEM. SO REQUIRED BY THE ACCOUNTING RULES TO KEEP THEM IN THEIR OWN AREA IN OUR ACCOUNTING [46:36] SYSTEM. GENERALLY, THAT'S THE CONVENTION CENTER, TARGET CENTER, SOME THINGS IN [46:41] REGULATORY SERVICES, AND OF COURSE GRANTS, AND CPED HAS QUITE A BIT OF SPECIAL REVENUE AS WELL TOO. SO FOR THAT AREA, [46:48] YOU CAN SEE THEY DECREASED THE FUND BALANCE BY ABOUT [46:54] $33 MILLION. THE CASH BALANCE DECREASED BY ABOUT $95 MILLION [47:00] COMPARED TO 2023. THE CITY MADE THE PUSH TO SPEND THE ARPA FUNDS THAT WE ORIGINALLY GOT IN [47:07] 2021-22 THAT WAS ABOUT $271 MILLION. CERTAINLY A MAJOR EFFORT BY THE CITY TO SPEND THAT [47:13] DOWN. WHATEVER WAS LEFT WAS TRANSFERRED BACK TO THE GENERAL FUND IN NOVEMBER OF LAST YEAR. [47:19] SO AGAIN, THESE ARE SPECIAL REVENUES. YEAH, WE EXPECT THESE TO BE FAIRLY STABLE. ALTHOUGH SOME OF THEM ARE CERTAINLY [47:25] SUBJECT TO THE ECONOMY, ESPECIALLY ONES THAT INVOLVE SALES TAXES. AND THEN JUST TO [47:33] TAKE A LITTLE QUICK LOOK HERE AT SOME OF THE NUMBERS HERE. YOU COULD SEE THE CONVENTION CENTER [47:38] WAS DOWN A LITTLE BIT ON THEIR CASH AND FUND BALANCE. OTHER [47:44] AREAS, YOU COULD SEE THE DOWNTOWN ASSETS FUND. CONVERSELY IT'S GONE UP AS SALES TAX [47:51] COLLECTION HAS IMPROVED. THE [47:56] GR GRANT FUNDS HAVE GONE DOWN. YOU CAN SEE THAT NEAR THE BOTTOM OF THE SLIDE HERE. IT HAS DROPPED [48:02] FROM 2023. THEN WE MOVE ON TO [48:07] THE NEXT PART OF THE FAMILY OF FUNDS HERE. THIS IS OUR INTERNAL SERVICE FUNDS. THEY'RE FUNDS -- [48:15] THESE FUNDS DEPARTMENTS THAT NORMALLY PROVIDE SERVICES WITHIN THE CITY. SO THAT INCLUDES THINGS LIKE OUR EQUIPMENT OR [48:21] FLEET SERVICES, PROPERTY SERVICES WHICH PROVIDES OUR FACILITIES AND BUILDINGS. OUR [48:26] STORES THAT PROVIDE, YOU KNOW, PARTS THAT ARE NEEDED. HIGHLY USED PARTS THAT ARE NEEDED ON [48:34] HAND. OUR SELF-INSURANCE FUND. OF COURSE THAT COVERS OUR [48:39] MEDICAL, DENTAL, LIABILITY, WORKER'S COMP, THINGS LIKE THAT. YOU CAN SEE IN GENERAL THEY HAVE INCREASED A LITTLE BIT. OUR NET [48:48] POSITION IS UP ABOUT $4 MILLION UP FROM 2023. OUR CASH IS UP [48:53] $25 MILLION OR SO. AJEN, THE CASH BALANCES ARE RESERVED FOR [48:59] CERTAINLY EMERGENCIES THAT COME IN, AS WELL AS INVESTMENTS AND PROJECTS THAT THEY NEED TO [49:06] INVEST IN TO PROVIDE SUPPORT TO THE CITY. AND JUST TAKE A LITTLE [49:12] LOOK AT OUR CHART HERE THAT HAS ALL THE INTERNAL SERVICE FUNDS. YOU COULD SEE OUR FLEET IS GOING [49:19] DOWN. I MENTIONED THAT EARLIER. BOTH IN TERMS OF CASH AND NET POSITION. IN ADDITION OUR [49:28] SELF-INSURANCE HAS KINDA GONE THE OTHER WAY WHERE OUR CASH IS GOING UP AND OUR NET POSITION IS [49:34] GETTING BETTER TOO. AND SO WE'LL HAVE -- WHEN WE ISSUE THE 2024 [49:40] FINANCIALS, WE'LL HAVE A BETTER IDEA OF THE LIABILITIES THERE. AND CERTAINLY, WHEN I COME BACK IN A FEW MONTHS, HOPEFULLY THE [49:48] SECOND QUARTER, WE'LL TAKE ANOTHER LOOK AT THOSE LIABILITIES. AGAIN, MODEST INCREASES IN BOTH CASH AND NET [49:54] POSITION. FINALLY, OUR LAST FUNDS ARE ENTERPRISE FUNDS. [50:00] THESE RUN LIKE REGULAR COMMERCIAL BUSINESSES. THEY PROVIDE SERVICES TO OUR EXTERNAL [50:06] CUSTOMERS OUTSIDE OF THE CITY GOVERNMENT. GENERALLY, THEY'RE [50:12] PUBLIC WORKS AREAS SUCH AS SEWER, STORM WATER, SOLID WASTE, PARKING, WHICH ALSO INCLUDES OUR [50:17] IMPOUND LOT. THEN ALSO CPED HAS A RELATIVELY SMALL ENTERPRISE FUND AS WELL TOO. SO THE NET [50:24] POSITION THERE INCREASED BY ABOUT $16 MILLION, $17 MILLION FROM 2023. THE CASH DECREASED BY [50:30] ABOUT $8 MILLION. AGAIN, THESE ARE FAIRLY STABLE GENERALLY [50:36] PROVIDE SERVICES THAT ARE NEEDED AND ARE PRETTY RESISTANT TO [50:41] DECREASES IN DEMAND AND THE LIKE. AND LASTLY, JUST TAKE A [50:47] LITTLE LOOK AT SOME OF THE NUMBERS THEMSELVES. WE COULD SEE [50:53] VARIOUS SMALL CHANGES. SEWER IS UP A LITTLE BIT. STORM WATER IS DOWN UNDER CASH AND FUND BALANCE. OTHERWISE, YOU COULD [51:03] SEE THE PARKING HAS GOTTEN BETTER. I JUST WANT TO CALL YOUR ATTENTION TO THE MIDDLE PART OF [51:08] THE SCREEN THERE. SAY THE CASH GOING UP BY A FEW COUPLE MILLION [51:13] DOLLARS FOR PARKING. AS WELL AS THE NET POSITION AS WELL TOO. SO [51:19] ANYWAY, FAIRLY STABLE THERE. SLIGHT DECREASES IN CASH OVERALL. BUT INCREASES IN OUR [51:25] FUND BALANCE. SO THAT CONCLUDES MY PRESENTATION TODAY. PLEASE LET ME KNOW IF I COULD ANSWER [51:31] ANY QUESTIONS. THANK YOU. >> ALL RIGHT. ARE THERE ANY [51:36] QUESTIONS FOR MR. HARGROVE? OKAY. I WANTED TO DELVE INTO ONE [51:44] OR TWO AREAS. FIRST ONE HAS TO [51:49] DO WITH WE'RE LOOKING AT A PAINFUL INCREASE IN THE PROPERTY LEVY AND THE FIVE-YEAR FINANCIAL [51:58] DIRECTION FOR 2026, AND IT WILL BE MORE PAINFUL BECAUSE OF THE SHIFT IN PROPERTY VALUE BURDEN. [52:05] I NOTED A COUPLE OF AREAS IN HERE WHERE IT SEEMS LIKE THERE [52:10] MIGHT BE A POTENTIAL BONUS TO OFFSET THAT AND I WANTED TO SEE IF THESE ARE AVAILABLE OR IF [52:18] THEY ARE ALREADY SPOKEN FOR. FOR EXAMPLE, I BELIEVE THIS IS THE LAST YEAR WE'LL BE MAKING THE [52:25] $6.7 MILLION PAYMENT ON THE DEBT SERVICE FOR THE CONVENTION [52:30] CENTER. DOES THAT THEN BECOME A SOURCE OF POTENTIAL CASH THAT CAN BE APPLIED TO OTHER AREAS OF [52:37] THE BUDGET SUCH AS REDUCING THE INCREASE IN THE PROPERTY TAX? [52:45] >> PRESIDENT BRANDT, LET ME -- IF I COULD GET BACK TO YOU ON [52:51] THAT. I DO WANT TO TALK TO OUR [52:57] INVESTMENT DIRECTOR, AS WELL AS JANE DISCENZA. I'M NOT UP TO [53:02] DATE ON THE BUDGET OR WHAT'S OCCURRING IN THERE. IF I COULD GET BACK TO YOU, I APPRECIATE [53:09] IT. >> MY SENSE IS THAT WAS FUNDED OUT OF THE SALT TAXES OR THE [53:15] DOWNTOWN ASSETS FUND. SO SALT TAXES ARE RUNNING $6.5 MILLION [53:23] OVER BUDGET FOR 2024. SO I'M HOPING THERE IS SOME CUSHION AVAILABLE THERE. THERE'S ALSO [53:32] QUITE AN INCREASE IN THE DOWNTOWN ASSETS FUND BALANCE. [53:37] FOR THE SELF-INSURANCE AREA. AND I WONDERED IF IT'S POSSIBLE FOR [53:43] YOU TO FORWARD TO US THE TORT [53:50] LIABILITY ACTUARIAL VALUATION. [53:55] I'VE SEEN IT CITED BUT NOT THE ACTUAL DOCUMENT. UNLESS THERE'S BEEN SOME UPDATE TO IT. IN THAT [54:01] CASE, MAYBE THE UPDATE WOULD BE APPROPRIATE. >> PRESIDENT BRANDT, YES, NO, I [54:08] CAN SEND THAT TO YOU. I DO HAVE THE ONE FOR '23 THAT JUST BREAKS DOWN OUR LIABILITIES. I THOUGHT [54:16] I SENT IT. I COULDN'T REMEMBER IF IT WAS THE CITY COUNCIL OR YOURSELVES. BUT WE ARE UPDATING [54:24] IT TOO. WE CERTAINLY WILL HAVE IT UPDATED BY THE END OF MAY. THAT'S OUR GOAL FOR GETTING THE [54:31] FINANCIALS READY FOR FINAL REVIEW. >> WHY DON'T YOU SEND ME WHAT YOU HAVE NOW, AND IF YOU WOULD, AND THEN I WILL LOOK FORWARD TO [54:38] AN UPDATE WHEN THAT'S READY. >> OKAY. >> ANY FURTHER QUESTIONS? OKAY. WE THANK YOU FOR YOUR [54:44] PRESENTATION. WHICH THE CLERK WILL RECEIVE AND FILE, PLEASE. [54:52] WE NEXT HAVE ANNOUNCEMENTS OR UPDATES ON OUR AGENDA. AND [54:59] EXCUSE ME. WE DO HAVE THE BOND TRANSMITTAL. THANK YOU. BOND [55:09] TRANSMITTAL MEMO WHICH REQUESTS THE BOARD TO ISSUE TAX EXEMPT [55:14] GENERAL OBLIGATION BONDS AT A FUTURE MEETING FOR PROJECTS OF [55:19] NECESSITY FOR THE CITY. DO MY COLLEAGUES HAVE ANY QUESTIONS OR COMMENTS? I'M NOT SURE WE HAVE ANYBODY HERE TO TAKE THEM. BUT [55:26] WE CAN ALWAYS FOLLOW UP. I THINK THIS IS A FAIRLY ROUTINE ITEM. SO CLERK WILL RECEIVE AND FILE [55:32] THAT REPORT. THANK YOU, COMMISSIONER ABENE. AND NOW WE MOVE ON TO ANNOUNCEMENTS. AND [55:38] THE ONLY ANNOUNCEMENT I HAVE IS AN UPDATE ON THE HIRING PROCESS. [55:43] BOTH OF THE FINALISTS HAVE GONE THROUGH TWO ROUNDS OF INTERVIEWS. AND THERE WAS [55:50] CONSENSUS AMONG THE SEARCH COMMITTEE MEMBERS FOR ONE OF THE [55:55] CANDIDATES. AND SO THE HR PEOPLE ARE CHECKING, DOING A BACKGROUND [56:02] CHECK. AND I HOPE THAT AT OUR NEXT MEETING, WE'LL HAVE A NAME TO BRING FORWARD TO YOU. ALL RIGHT. AND THEN WE SHOULD [56:10] PROBABLY RENEW OUR DISCUSSION OF WHAT WE WANT THAT PERSON TO DO. [56:15] SO WE'VE COMPLETED ALL -- ANY OTHER UPDATES, I SHOULD ASK? WE'VE COMPLETED ALL THE BUSINESS [56:21] TO COME BEFORE US, AND WITHOUT OBJECTION, WE STAND ADJOURNED.