A LITTLE BIT OF A LIGHTER AGENDA, BUT WE DO HAVE ONE BRIEFING TODAY. [00:00:04] WE'LL JUMP RIGHT IN WITH ITEM NUMBER ONE. WE ARE STARTING WITH THE RESOLUTION APPROVING [1. Resolution approving Grand Rapids Community College Higher Education Television Authority (HETA) Grant Reimbursement - $81,044.20] GRAND RAPIDS COMMUNITY COLLEGE HIGHER EDUCATION TELEVISION AUTHORITY GRANT REIMBURSEMENT. SO MOVED. SUPPORT. ALL RIGHT. MOVED AND SUPPORTED. WE HAVE THIS ONE. OKAY. THANK YOU. I GUESS I CAN PICK THIS ONE UP. WE DON'T HAVE ANYONE HERE TODAY, BUT YEAH, THIS IS JUST GRANT REIMBURSEMENT FOR RELATED EQUIPMENT PURCHASES, THINGS LIKE THAT FOR OUR, YOU KNOW, WITH OUR COMMUNICATIONS DEPARTMENT FUNDED OFF OF THE THE PROGRAM, IT'S PEG ACCESS, SO IT'S REIMBURSABLE, YOU KNOW, THROUGH THE CABLE STATIONS, THINGS LIKE THAT. SO THAT'S GREAT. THANKS. AND I MISSED THE AMOUNT ON THAT. IT'S $81,044.20. CORRECT. AWESOME. ALL RIGHT, COLLEAGUES, ANY QUESTIONS ON THAT ONE? ALL RIGHT. HEARING SEEING NONE. ALL THOSE IN FAVOR SAY AYE. AYE. THOSE OPPOSED. IT CARRIES ITEM NUMBER TWO. WE'VE GOT A RESOLUTION AUTHORIZING EXPENDITURES FOR DRONE BASED PARKING DATA [2. Resolution Authorizing Expenditures for Drone-Based Parking Data Collection in Accordance with Administrative Policy 15-03 (Surveillance Equipment Policy) Not to Exceed $30,000] COLLECTION IN ACCORDANCE WITH ADMINISTRATIVE POLICY 15 ZERO THREE SURVEILLANCE EQUIPMENT POLICY NOT TO EXCEED $30,000. SO MOVED. SUPPORT. MOVED AND SUPPORTED. WELCOME, MISS SMITH. GOOD MORNING, COMMISSIONERS, I'M JESSICA SMITH. I'M THE MOBILE DIRECTOR. THIS ITEM IS BROUGHT FORWARD TO YOU AS PART OF THE SURVEILLANCE POLICY. 1503 TO GO THROUGH A PUBLIC PROCESS WHENEVER WE ARE USING SURVEILLANCE EQUIPMENT. SO WE ARE LOOKING AT USING DRONE BASED PARKING DATA COLLECTION FOR ON STREET AND SURFACE PARKING, OCCUPANCY DATA AND AND NUMBERS FOR ABOUT A THREE WEEK PERIOD. AND BEFORE YOU HERE IS THE APPROVAL TO USE THESE FUNDS ABOUT $30,000 OF THE ENTIRE PARKING INVESTMENT STRATEGY PROJECT FOR THE DATA COLLECTION PORTION OF THIS PROJECT. GREAT. THANKS. I KNOW WE DISCUSSED THIS ONE AT LENGTH. WE HAD PUBLIC COMMENT ON THIS PREVIOUSLY AND GIVE THE PUBLIC AN OPPORTUNITY TO VOICE CONCERNS AND ASK QUESTIONS IF NEED BE. SO WITH THAT, I'LL SEE IF MY COLLEAGUES HAVE ANY QUESTIONS. ALL RIGHTY. ALL THOSE IN FAVOR SAY AYE. AYE. AYE. OPPOSED? SAME SIGN. IT CARRIES. ITEM NUMBER THREE. [3. Ordinance amending Section 1 of the Budget Ordinance 2025-11 for Fiscal Year 2026 (Amendment No. 1)] WE'VE GOT AN ORDINANCE AMENDING SECTION ONE OF THE BUDGET ORDINANCE 2025 DASH 11 FOR FISCAL YEAR 2026. AND THIS IS AMENDMENT NUMBER ONE. SO MOVED. SUPPORT. ALL RIGHT. MOVED AND SUPPORTED. GOOD MORNING COMMISSIONERS. JUST A FEW ITEMS THIS MORNING. NUMBER ONE, THIS IS SETTING UP THE APPROPRIATION IN ORDER TO PAY DEBT SERVICE FOR THE SOCCER STADIUM AND AMPHITHEATER BONDS. AS YOU'LL RECALL, WE ISSUED THESE BONDS BACK IN MAY. THAT WAS WELL INTO OUR BUDGET PROCESS. SO SETTING UP THE APPROPRIATION FOR FISCAL YEAR 26 GOING FORWARD WILL INCLUDE THAT APPROPRIATION AS PART OF YOUR ADOPTED BUDGET. SO YOU'LL WON'T HAVE TO DO THIS KIND OF ACTION AGAIN. BUT OUR FIRST INTEREST PAYMENT IS DUE OCTOBER 1ST OF 2025. AND IT'S APRIL. OCTOBER. SO IN APRIL WILL PAY PRINCIPAL AND INTEREST, BUT OCTOBER INTEREST ONLY. WE DID THE REPORT OF BOND SALE ON THESE PROCEEDS BACK ON JUNE 10TH. IT'S 4 OR 5.2 MILLION IN THE CAPITAL RESERVE FUND. AND AGAIN, NO EFFECT ON FUND BALANCE. I'LL ALSO INCLUDE THAT THE FUNDING SOURCE FOR THIS IS FROM THAT KENT COUNTY HOTEL LEVY THAT EXTRA 3% WHERE WE VOTERS INCREASED IT FROM 5%, UP TO 8%. THAT DELTA IS THE SOURCE OF THE HOW WE PAY THESE BONDS. NUMBER TWO FOR THE POLICE DEPARTMENT, A GENERATOR REPLACEMENT, MISCELLANEOUS EXPENSES. THIS IS 100 AND 117,000. AND THE FEDERAL FORFEITURES FUND USING THAT FUND BALANCE NUMBER THREE FOR THE PARKS AND REC DEPARTMENT. THIS IS AN ENVIRONMENTAL JUSTICE GRANT APPROPRIATING $500,000 OF REVENUE AND APPROPRIATION. HERE AND THEN NUMBER FOUR, WE HAVE THE ROOSEVELT PARK AND PLAZA ROOSEVELT GRANT. THIS IS TO OUR 5 MILLION BEING APPROPRIATED REVENUE AND APPROPRIATIONS IN THE PARK'S CAPITAL FUND. NUMBER FIVE, THIS IS 61ST DISTRICT COURT, DRUG AND SOBRIETY COURT, 38,000. INTO THEIR FUND. NO EFFECT ON RETAINED EARNINGS. THEIR NUMBER SIX. OFFICE OF OVERSIGHT AND PUBLIC ACCOUNTABILITY, COMMUNITY BASED VIOLENCE INTERVENTION AND PREVENTION GRANT. THIS INCLUDES THE ADDITION OF ONE ADMINISTRATIVE ANALYST INTO THE OTHER GRANTS FUND TO SUPPORT THIS WORK. ALSO AN APPROPRIATION OF $2 MILLION. I WILL NOTE THAT ANY TIME WE TALK ABOUT A GRANT FUNDED POSITION, PER OUR POLICY WORK LAST YEAR WE DO INCLUDE THE LANGUAGE GLITCH THAT SHOULD THIS GRANT EXPIRE AND WE HAVEN'T SECURED AN ALTERNATIVE FUNDING SOURCE, [00:05:05] THIS POSITION WILL BE REMOVED FROM THE ROSTER. NUMBER SEVEN, THE 2020 COPS HIRING PROGRAM. GRANT. THIS IS THE FINAL YEAR OF THE COPS. GRANT. THIS WILL BE FOR 200,000 WITH OUR LOCAL MATCH OF 449,000 APPROPRIATING THAT IN THE POLICE GRANTS FUND. IT BEING THE FINAL. I'LL JUST NOTE IT'S THE FINAL YEAR OF THE GRANT. WHAT YOU'LL SEE IS THIS IS A GREAT PROGRAM FOR ONBOARDING POLICE OFFICERS, WHERE AT THE BEGINNING OF THE GRANT LIKE IN YEAR ONE, THE GRANT IS PRETTY MUCH ALMOST 100% OF THE, OF THE FUNDING, WHEREAS THE LOCAL MATCH INCREASES YEAR OVER YEAR. SO NOW IN THE FINAL YEAR, YOU'LL SEE THAT LOCAL MATCH HAS INCREASED DRAMATICALLY. IT'S HOW HELPS MUNICIPALITIES SCALE IN TO TAKING ON POSITIONS. SO I'LL JUST NOTE THAT NUMBER EIGHT, WE HAVE OUT OF THE EXECUTIVE OFFICE, THE CITY COMMISSIONS MEETING, STREAMING, INDEXING AND CAPTIONING SYSTEM. MR. LOU CANFIELD FROM THE EXECUTIVE DEPARTMENT IS HERE TO BRIEFLY TALK ABOUT THAT JUST BECAUSE IT IS HOW WE OPERATE FOR COMMISSION MEETINGS. SO, LOU. GOOD MORNING. WELCOME. GOOD MORNING. THANK YOU, MISS KAREN. AND COMMISSIONERS I'LL BE VERY BRIEF. THE REASON THIS IS NECESSARY IS BECAUSE IT'S FULL YEAR FUNDING FOR SOMETHING WE PROCURED DURING THE BUDGET PREPARATION TIME FOR THAT UPCOMING FISCAL YEAR. SO IT FELL THROUGH A GAP. BUT IT WON'T BE NECESSARY TO DO THIS IN FUTURE YEARS. THIS IS AN INNOVATION THAT SUPPORTS OUR ORGANIZATIONAL VALUE OF ACCOUNTABILITY AND OUR STRATEGIC PRIORITY OF AN ENGAGED AND CONNECTED COMMUNITY. AND I JUST WANT TO SHOW YOU VERY BRIEFLY, BECAUSE THE VISUAL IS MORE POWERFUL THAN ME DESCRIBING THIS. SO FOR PREVIOUS CITY COMMISSION MEETINGS THROUGH OUR MEETING PORTAL, THERE IS NOW THIS LITTLE VIDEO ICON OFF TO THE RIGHT. IF YOUR WINDOW IS NARROWER THAN MINE, YOU MIGHT HAVE TO CLICK ON THESE THREE DOTS TO SEE THAT. AND I'M JUST GOING TO CLICK ON THAT FOR THE MOST RECENT FISCAL COMMITTEE MEETING. SO YOU CAN SEE THE AGENDA OFF TO THE LEFT HERE. AND YOU CAN SEE ACTUALLY I'M GOING TO GO TO ONE MEETING PRIOR. EXCUSE ME. OKAY. SO YOU CAN SEE THE THE AGENDA IS INDEXED. SO YOU CAN CLICK ON ANY AGENDA ITEM AND JUMP DIRECTLY TO THAT POINT IN THE VIDEO. AND ALSO UP HERE YOU CAN SEE A TRANSCRIPT TAB. AND THIS IS A FULL WORD FOR WORD TRANSCRIPT OF THE MEETING. AND YOU CAN CLICK ON ANY WORD AND GO DIRECTLY TO THAT POINT IN THE VIDEO. SO HOPEFULLY THAT'S A SENSE OF WHAT THIS INNOVATION IS AND WHAT THE REQUESTED FUNDS ARE PROVIDING. ANY QUESTIONS? COLLEAGUES? NO QUESTIONS, JUST A COMMENT. THAT'S AWESOME. THAT'S GREAT. I APPRECIATE YOUR WORK ON THAT. THANK YOU. OKAY. AND THEN OUR CONTINGENT BALANCE REMAINS UNCHANGED AT 1.5 MILLION FOR THE YEAR. SO IF THERE ARE ANY QUESTIONS. ALL RIGHT. THANKS. COLLEAGUES, ANY QUESTIONS ON ANY OF THOSE OTHER ITEMS? NO QUESTIONS. MISS CLARENCE, BUT WONDERING IF YOU COULD GIVE A LAYMAN'S DESCRIPTION WHEN YOU WERE TALKING ABOUT THE BONDS AND SETTING THAT UP AND THE PAYMENTS, HOW IT'S COMING THROUGH THE FROM KENT COUNTY. YES. SO THAT BECAUSE YOU WAS LIKE HERE. SURE, SURE, SURE. YEAH. WE'VE. YEAH. NO IT IS EVERY TIME WE, WE TALK ABOUT IT AND. YEAH, WE HAVE ADDRESSED THIS I KNOW WITH OUR COMMITTEE AS A WHOLE, BUT FOR THE BENEFIT OF THIS GROUP, I, WE ISSUED BONDS ON BEHALF OF KENT COUNTY. SO THE FUNDING SOURCE IS RECEIVED BY KENT COUNTY. IN THAT FUNDING SOURCE, AS I SAID, IS THE HOTEL MOTEL TAX VOTERS APPROVED SPECIFICALLY FOR THE AMPHITHEATER AND AND SOCCER STADIUM PROJECTS. THEY MAY HAVE, YOU KNOW, PLANS IN THE FUTURE FOR OTHER USES OF THAT MONEY AS THAT REVENUE STREAM GROWS. BUT WE HAVE FIRST RIGHTS TO THAT 3%. I SEE MISS BEHRENS IS IN THE AUDIENCE, TOO, BUT SHE HELPED SECURE A CONTRACT ASSOCIATED WITH THOSE BONDS WHERE, IN ESSENCE YOU KNOW, IT SETS UP THE PAYMENT OF THAT. WE, THE CITY, INVOICED THE COUNTY ABOUT SIX MONTHS IN ADVANCE FOR THOSE FOR THAT MONEY TO PAY THE NEXT SIX MONTHS OF DEBT SERVICE. SO WE HAVE IT IN HAND WELL IN ADVANCE OF NEEDING TO DO THAT DEBT SERVICE PAYMENT. SHOULD SOMETHING HAPPEN ECONOMICALLY, WHERE THE HOTEL MOTEL TAX, YOU KNOW, IS LESS THAN EXPECTED AND WE DON'T GET QUITE AS MUCH MONEY AND IT CAN'T SECURE IT, CAN'T PAY THAT DEBT. [00:10:01] WE ALSO SET UP THE CONTRACT SOMEWHAT OF A RAINY DAY FUND. SO KENT COUNTY HAS ALSO FUNDED THIS WHERE WE HAVE THAT MONEY TO DRAW FROM IF WE DON'T HAVE ENOUGH COMING IN FROM THE COUNTY. IN THAT CONTRACT, IT ALSO HAS PROVISIONS FOR THE COUNTY CONTINUING TO MAKE THAT RAINY DAY FUND WHOLE IF WE EVER HAD TO TAP THAT. SO. SO AGAIN, WE HAVE THESE CHECKS IN PLACE TO MAKE SURE, YOU KNOW, THE CITY IS PROTECTED. SO WHAT WE'RE DOING TODAY, THOUGH, IS WE HAVE A INTEREST PAYMENT DUE IN OCTOBER AS WELL AS PAYMENTS DUE NEXT APRIL FOR PRINCIPAL AND INTEREST. SO WE HAVE TO SET UP AN APPROPRIATION IN ORDER TO DO THAT SPENDING. SO THAT'S WHAT THAT 5.2 MILLION IS, IS, IS COMMISSION ACKNOWLEDGING. YES, WE HAVE THIS DEBT SERVICE PAYMENT AND WE PLAN TO MAKE PAYMENTS IN OCTOBER AND IN MAY AND YOU KNOW SO SO THAT'S THAT'S MECHANICALLY WHAT'S HAPPENING HERE WHEN WE DO OUR BECAUSE WE ISSUED THOSE BONDS WHILE WE WERE GOING THROUGH BUDGET ADOPTION, THIS APPROPRIATION WASN'T SET UP ANNUALLY. AS PART OF THE BUDGET PROCESS. YOU'LL SEE THE DEBT SERVICE SECTION. AND I MAKE SURE I POINT THAT OUT FOR YOU IN THE FISCAL PLAN, WHEN WE WHEN WE DO THE NEXT ADOPTED BUDGET, THAT SHOWS, HERE'S ALL THE DEBT WE'RE GOING TO HAVE TO PAY IN THE NEXT YEAR. HERE'S WHERE THE APPROPRIATION IS AT FOR THAT. SO WE TYPICALLY WOULD DO THIS AS PART OF THE BUDGET PROCESS. IT WAS JUST THE TIMING THAT IT DIDN'T GET WORKED INTO THE BUDGET AT THE TIME. YOU KNOW, THAT'S FOR A VARIETY OF REASONS, MAINLY BECAUSE OF WE DIDN'T KNOW HOW WE'D DO FOR PRICING, SO WE DIDN'T KNOW THE EXACT AMOUNT OF WHAT TO APPROPRIATE WHEN WE WENT THROUGH THE BUDGET PROCESS. SO THAT'S THE THAT'S THE LONG AND SHORT OF IT. IT IS. IT IS IT'S A LOT. AND THIS WAS A HUGE ISSUANCE. IT WAS 122.3 3 MILLION. BUT WE DID. WE DID ENSURE THAT THE CITY WAS WELL PROTECTED AS FAR AS YOU KNOW, MAKING SURE WE GET THAT REVENUE STREAM IN FROM THE COUNTY. SO, YEAH, I JUST WANT TO. YEAH. BECAUSE SOMETIMES PEOPLE GET CAUGHT UP IN THE LANGUAGE AND THEY DON'T KNOW WHAT IT MEANS. OH, ABSOLUTELY. MAKING SURE THE COMMUNITY UNDERSTANDS. BRING IT BACK ON DOWN TO CRAYOLA LEVEL. WE ARE HOLDING SOMETHING FOR THE SOCCER STADIUM, HELPING THEM ACHIEVE WHAT THEY NEED TO ACHIEVE AND THE MONEY TO PAY THAT IS COMING THROUGH THE COUNTY, BUT IT'S COMING THROUGH US. SO WE'RE KIND OF THE LONER, LIKE, YEAH, THE CONDUIT FOR ALL THIS TO HAPPEN. YEP. YEP. YEAH. JUST. YEAH. ABSOLUTELY. THANK YOU. YEAH, IT'S A GOOD QUESTION. I THINK THE BIGGEST THING PEOPLE JUST WANT TO KNOW IS LIKE, IS THIS COMING OUT OF MY INCOME TAX? YOU KNOW, THOSE KINDS OF THINGS. SO THE COMMUNITY FEELS LIKE WE'RE PAYING FOR THIS. THEY'RE DOING THIS THING. IT'S SUPPOSED TO BE OURS, BUT WE'RE NOT GOING TO, YOU KNOW WHAT I MEAN? SO HELPING PEOPLE UNDERSTAND THAT IT'S NOT. YEP. YEAH. IT'S NOT, BUT, YOU KNOW, IT'S IT'S SOMETHING TO BE CONCERNED ABOUT BECAUSE IT IS AGAINST THE CITY'S FULL FAITH AND CREDIT. SO THAT'S THAT'S SOMETHING. EVERY TIME I TALK TO A RATING AGENCY, THINGS LIKE THAT. THIS IS THIS IS SOMETHING THAT IS ON THE CITY'S BOOKS IN A SENSE THAT, YOU KNOW, IS AGAINST OUR, YOU KNOW, DEBT CAPACITY, THINGS LIKE THAT. SO IT IS AS FOR THAT CAR FOR YOUR CHILD. ABSOLUTELY, ABSOLUTELY. GOING TO PAY THAT BILL? YEAH. TIME. YEP. BECAUSE IF NOT, YOU'RE THE ONE THAT'S RESPONSIBLE. THAT'S THAT'S RIGHT. BUT GREAT ANALOGY. I DOUBT THE COUNTY WOULD WANT ME TO CALL THEM THEIR LITTLE BROTHER OR SOMETHING. YEAH, WE'LL USE MINE. WE'LL USE. I LIKE IT, I LIKE IT, I LIKE IT. NO, THANKS FOR THAT. YEAH. COOL. ANY ANY OTHER QUESTIONS? ALL RIGHTY. I'LL CALL THE QUESTION, THEN. ALL THOSE IN FAVOR SAY AYE. AYE. THOSE OPPOSED? IT CARRIES. THAT WILL BRING US TO ITEM NUMBER FOUR. [4. Bid List Resolution for August 26, 2025] WE'VE GOT OUR BID LIST RESOLUTION FOR AUGUST 26TH, 2025. AND I'LL HAND IT BACK TO MISS CLAIRE. JUST LARGELY ROUTINE ITEMS. IF THERE IS ANY QUESTIONS, THOUGH, MYSELF OR THE DEPARTMENTS ARE HERE TO ANSWER. SO. SORRY, I NEED A MOTION. OH, SORRY. SUPPORT. THANK YOU. CONTINUE. THANKS. I SAID BEAT THE CLOCK, MAN. NO, BUT. BUT WE ARE HERE. IF THERE ARE ANY. IF THERE ARE ANY QUESTIONS ON THE BID LIST. FAIRLY ROUTINE. YEP. THANK YOU. AND I WROTE DOWN THAT STARTS ON PAGE 29 IN THE AGENDA PACKET. IF ANYBODY WANTS TO READ THROUGH THAT. ANY QUESTIONS COLLEAGUES DISCUSSION. ALRIGHTY. ALL THOSE IN FAVOR SAY AYE. AYE. THOSE OPPOSED. THE MOTION CARRIES. THAT BRINGS US TO ITEM NUMBER FIVE. [5. Briefing on Internal Audit Plan] WE'VE GOT OUR BRIEFING THIS MORNING. FROM OUR DEPUTY CONTROLLER KIRKLAND. SO WE'LL WELCOME HER UP HERE. THIS BRIEFING WILL BE COVERING OUR INTERNAL AUDIT PLAN. GOOD MORNING AND WELCOME. GOOD MORNING. AND THANK YOU. AND. THANK YOU SO MUCH FOR HAVING US HERE THIS MORNING. JUST BRIEFLY TO GO OVER OUR 2020 SIX. AUDIT PLAN. INTERNAL AUDIT PLAN. SO THE INTERNAL AUDIT DEPARTMENT, AS YOU KNOW, IS A PART OF THE COMPTROLLER'S OFFICE. [00:15:03] WE'RE HERE TO PROVIDE SUPPORT FOR CITY'S OPERATIONS BY PROVIDING INDEPENDENT, OBJECTIVE ASSURANCE AND INSIGHT INTO HOW WELL THE CITY IS OPERATING. WE'RE HERE TO HELP THE CITY, HELP THE DEPARTMENTS, TO MAKE SURE THEY'RE FOLLOWING POLICIES AND PROCEDURES AND PROVIDE IMPROVEMENTS OR RECOMMENDATIONS FOR IMPROVEMENTS WHERE THEY NEED TO BE. OUR GOAL IS TO NOT POINT OUT WHAT'S WRONG. WE'RE HERE TO HELP STRENGTHEN INTERNAL CONTROLS, IMPROVE EFFICIENCIES, SUPPORT ACCOUNTABILITY, AND ACROSS THE DEPARTMENTS. SIMPLY, WE'RE HERE TO MAKE SURE EVERYTHING IS WORKING THE WAY IT'S SUPPOSED TO. ALL RIGHT. AND NOT HERE TO DO THE WHOLE GOTCHA THING. WE'RE HERE TO SUPPORT ERICA WILL PROVIDE THE ACTUAL PLAN, AND I'LL COME UP AND TALK ABOUT THE COMMUNICATIONS AFTERWARDS. GREAT. GOOD MORNING, COMMISSIONERS. GOOD MORNING. MY NAME IS ERICA BILLS. I'M THE CITY'S INTERNAL AUDITOR. BEFORE I JUMP INTO THE PLAN, THE DETAILS OF THE PLAN, I JUST WANT TO TALK A LITTLE BIT ABOUT THE METHODOLOGY THAT WENT INTO DEVELOPING THIS PLAN. SO, AS YOU'RE ALL AWARE BACK IN APRIL, I SENT OUT AN EMAIL ACROSS ALL CITY COMMISSIONERS, CITY LEADERS, DEPARTMENT HEADS AND SUPERVISORS ASKING FOR THEIR INPUT INTO THE PLAN. I ASKED THEM TO FOCUS ON FOUR THINGS CITY STRATEGIC PRIORITIES, FINANCIAL AND ECONOMIC FACTORS, PUBLIC IMPLICATIONS, AND OPERATIONAL EFFICIENCIES. AND THIS COULD BE ANYTHING WITHIN THEIR DEPARTMENT OR JUST FROM A HIGH END OBSERVATIONAL PROCESS. WE GOT ABOUT 30% RESPONSE RATE. SO WE HOPE TO BUILD OFF THAT IN THE FUTURE. SURE. SO IN ADDITION TO THOSE RESPONSES, AS WELL AS MY OWN OBSERVATIONS AND EXPERIENCES AND WORKING WITH THE GOVERNMENTAL FINANCIAL OFFICERS ASSOCIATION, THE ASSOCIATION OF LOCAL GOVERNMENT AUDITORS, TO FIND BEST PRACTICES TO BUILD AND DEVELOP OUR PLAN. SO AS THINGS WERE IDENTIFIED TO POTENTIALLY AUDIT, EVERYTHING WAS PUT THROUGH A RISK ASSESSMENT, WHICH IS A BEST PRACTICE IN INTERNAL AUDIT. THE RISK ASSESSMENT IS PERFORMED TO PRIORITIZE AUDITS AND IDENTIFY AND PRIORITIZE VERY OPERATIONAL AND SYSTEM BASED THREATS THAT MAY CREATE RISK FOR THE CITY. SO AGAIN, I FOCUSED ON FOUR THINGS. WHAT IS THEIR IMPACT? FINANCIAL IMPACT. WHAT'S THE IMPACT ON THE OPERATIONS OF THE CITY? IF THERE'S ANY ETHICAL OR COMPLIANCE IMPLICATIONS AS WELL AS REPUTATION AND APPEARANCE TO THE PUBLIC, ANY RISKS THERE? EVERY AUDIT WAS THEN SUBJECT USING THOSE FOUR CATEGORIES TO THROUGH A SCORING MECHANISM. AND THIS SCORING MATRIX LOOKS AT THE LIKELIHOOD OF THE RISK OCCURRING AS WELL AS THE IMPACT IF IT HAS A LOWER RISK OR IMPACT ON. FOR THE FINANCIAL EXAMPLE IT WOULD BE SCORED A ONE IF IT HAD MORE OF A BROAD IMPACT ON BUDGET, ON FINANCIAL IMPLICATIONS, IT WOULD BE HIGH AND IT WOULD RATE A FIVE. SO YOU MULTIPLY THE FIVE BY THE FIVE AND YOU GET 25. SO EVERY CATEGORY WAS SCORED USING THIS MATRIX. AND THEN I NARROWED DOWN THE TOP PRIORITIES TO FOCUS ON THIS YEAR. SO WITH THAT THESE ARE THE THREE PRIMARY PROJECTS THAT I'LL BE FOCUSING ON THIS YEAR. THIS IS A WORKING DOCUMENT. IT'S NOT SET IN STONE. THINGS MAY COME UP THAT I MAY NEED TO BE ADDRESSED, OR DEPARTMENTS CAN REACH OUT TO US AND ASK FOR ASSISTANCE IN REVIEWING THINGS. FOR EXAMPLE, THE FIRE DEPARTMENT REACHED OUT TO ME RECENTLY. THEY'VE HAD SOME STAFFING CHANGES, SOME RETIREMENTS, AND THEY'D LIKE US TO COME OUT AND REVIEW THEIR PROCESSES JUST TO MAKE SURE EVERYTHING IS WHERE IT SHOULD BE. LOOK FOR OPPORTUNITIES TO IMPROVE EFFICIENCIES THINGS ALONG THAT LINES. BUT THESE ARE THE SPECIFIC PROJECTS THAT I'LL BE FOCUSING ON IN ADDITION TO PROVIDING SUPPORT FOR OTHER DEPARTMENTS. THE P CARD POLICY AND USAGE WE HAVE A CURRENT PURCHASE CARD GUIDELINE. AND I'M GOING TO REVIEW THAT POLICY TO ENSURE THAT IT'S ALIGNED WITH BEST PRACTICES, AS WELL AS REVIEW SAMPLES OF PURCHASE CARD TRANSACTIONS ACROSS THE CITY TO DETERMINE THAT WE'RE FOLLOWING THAT POLICY AND LOOK FOR OPPORTUNITIES TO IMPROVE THAT THAT PROCESS. I'LL ALSO BE LOOKING AT THE TRAVEL POLICY. AS MANY OF YOU KNOW, WE HAVE TRAVEL REIMBURSEMENTS AND A TRAVEL POLICY. I'M GOING TO BE REVIEWING THAT POLICY, AS WELL AS REVIEWING TRAVEL FOR VARIOUS EMPLOYEES AND ENSURING THAT WE'RE FOLLOWING THE TRAVEL POLICY AND MAKING SURE THAT WE'RE ADHERING TO BEST PRACTICES AS WELL. AND LASTLY, THIS WAS A DEPARTMENT SPECIFIC REQUEST. [00:20:03] MOBILE GR REACHED OUT AND IN THEIR SURVEY AND ASKED FOR ME TO COME OUT AND REVIEW THEIR PARKING AGREEMENTS WITH THE DDA, THE CONVENTION ARENA AUTHORITY, THE COUNTY TO ENSURE THAT THERE'S ACCURACY OF THE REVENUE SHARE CALCULATIONS AND THAT EVERYTHING IS BEING ADHERED TO AND FOLLOWED IN THAT MANNER. IN ADDITION TO THESE SPECIFIC PROJECTS, I ALSO PLAN. WE ALSO PLAN ON DOING ANNUAL AUDITS. SO, FOR EXAMPLE, WE JUST WENT OUT TO ALL THE DEPARTMENTS THAT HANDLE CASH AND PERFORMED PETTY CASH AUDITS, MAKING SURE THAT CASH IS BEING KEPT IN A SECURE LOCATION, THAT THERE'S CONTROLS IN PLACE TO MAKE SURE THAT CASH GOES FROM OUR, OUR SAFES OR OUR STORAGE OPERATIONS AND GETS TO THE BANK TO BE DEPOSITED. I ALSO RECENTLY JUST PERFORMED INVENTORY AUDITS. WE WENT OUT TO VARIOUS WAREHOUSES AND STOCK ROOMS AND DID INVENTORY AUDITS TO VERIFY THAT WE'RE MANAGING AND TRACKING INVENTORY IN AN APPROPRIATE MANNER. I ALSO PLAN ON DOING ACCOUNT CODE AUDITS. WE HAVE A LOT OF DIFFERENT ACCOUNT STRINGS AND ACCOUNT STRUCTURES, AND IT'S VERY IMPORTANT TO MAKE SURE THAT WE'RE PROPERLY CODING PURCHASES AND ITEMS TO THE APPROPRIATE CODES. ALSO, AS WE GET MORE INTO OUR ERP AND TO OUR NEW ERP SYSTEM, I HOPE TO DO PAYROLL AUDITS AS WELL AS FINANCIAL SYSTEM USER AUDITS TO MAKE SURE SECURITY IS IN LINE. AND I'LL BE WORKING WITH VARIOUS DEPARTMENTS ON THOSE AS WELL. SO WITH THAT, I'LL HAND IT OVER TO DESIREE TO TALK ABOUT WHAT HAPPENS POST AUDIT. THANK YOU ERIKA. SO AT THE COMPLETION OF EACH ONE OF THE AUDITS, A FORMAL REPORT WILL BE PREPARED. BUT JUST KEEP IN MIND ALSO, ALL THROUGH THE AUDIT PROCESS, THERE IS COMMUNICATIONS TAKING PLACE. THERE ARE NO SURPRISES AS TO IF THERE'S ANY WEAKNESSES OR ANYTHING THAT NEEDS TO BE IMPROVED ON. THOSE COMMUNICATIONS ARE BEING DONE ALL THROUGH THE PROCESS. BY THE TIME YOU GET TO THE FORMAL AUDIT REPORT, THE SCOPE OF AUDIT IS STATED IN THERE. ANY RESULTS OF THE FINDINGS AND RECOMMENDATIONS ARE THERE AND ALSO A RESPONSE FROM THE MANAGER. THERE'S MEETINGS WITH THE DEPARTMENT HEADS, CITY LEADERS AND ANY ANYONE WHO MAY BE INTERESTED TO TO SEE THE WORK THAT HAS BEEN DONE. AND AFTER THAT, THE REPORTS ARE PUBLISHED ON OUR WEBSITE, ON THE CITY'S WEBSITE. AND THAT CONCLUDES OUR PRESENTATION. ARE THERE ANY QUESTIONS? THANK YOU SO MUCH, COLLEAGUES. ANY ANY QUESTIONS. ALL RIGHT. I HAVE JUST TWO REALLY QUICK ONES. THE 30% RESPONSE RATE. SO THAT'S WHAT COMPRISES THAT LITTLE CHART WE SAW WITH THE RED GREEN YELLOW. OKAY. OKAY. AND YOU SAID THAT THERE'S A PLAN LOOKING AT BEST PRACTICES TO TO GET MORE DEPARTMENTS TO RESPOND TO. ABSOLUTELY. WE'VE BEEN HAVING CONVERSATIONS AND THE CITY MANAGER ALLOWED US TO COME IN TO THE CABINET MEETING ON LAST WEEK TO ALSO DO THE SAME PLAN PRESENTATION. AND SO WE'VE BEEN HAVING DISCUSSIONS WITH THEM AND WITH DEPARTMENT HEADS TO GET MORE OF A FEEDBACK AND BUILD RELATIONSHIPS BECAUSE, YOU KNOW, YOU WANT TO BUILD THAT TRUST THAT WE'RE HERE TO SUPPORT THEM. YEP. NO. THAT'S GREAT. THANKS. AND THEN JUST REAL QUICKLY TO, I GUESS, WHAT SORT OF COMMUNICATION IS THERE TO PUBLISH THIS PLAN JUST TO THE PUBLIC FOR COMMUNITY MEMBERS? BECAUSE I THINK THAT'S AN IMPORTANT PIECE, TOO, IS JUST HAVING CITIZENS UNDERSTAND WHAT WE DO INTERNALLY TO MAKE SURE THAT WE'RE FOLLOWING PROTOCOL. ABSOLUTELY. ONCE THIS IS DONE, ONCE WE'VE GONE THROUGH ALL OF THIS, WE WILL PUT THE FINAL REPORT OR AUDIT PLAN ON OUR WEBSITE. OKAY, SO THE NOT JUST THE FINDINGS OF THE REPORT, BUT THE THE PROTOCOL TO GET FROM POINT A TO POINT B AS WELL. YES. OKAY. AWESOME. AWESOME. COOL. WELL, THAT WAS MY ONLY OTHER QUESTION. SO HEARING NO OTHER QUESTIONS, WE CAN MOVE ON TO OUR COMPTROLLER'S REPORT HERE, BUT APPRECIATE YOU BOTH BEING HERE TO SHARE THAT. COMMISSIONER ROBINS, IF I CAN MAKE ONE COMMENT, I JUST WANT TO THANK DESIREE, OUR DEPUTY CONTROLLER, AND ERICA, OUR INTERNAL AUDITOR, FOR THIS VALUABLE WORK THAT THEY'RE DOING FOR THE CITY. AND I THINK I JUST APPRECIATE THE FACT THAT THEY PUT TIME INTO BRINGING SOME GOOD VISIBILITY, BOTH TO THE COMMISSIONERS HERE AND THE GENERAL PUBLIC. SO I JUST WANT TO THANK THEM FOR THE WORK THAT THEY'RE PUTTING INTO THIS. YEP. COULD NOT AGREE MORE. THANK YOU FOR SAYING THAT. AWESOME. ALL RIGHT, SO ITEM NUMBER SIX, WE'VE GOT OUR COMPTROLLER'S REPORT. [6. Comptroller's Warrant Report for the period of July 22, 2025 through August 11, 2025 in the amount of $48,170,885.79 and Monthly Travel Report] THIS IS FOR THE PERIOD OF JULY 22ND, 2025 THROUGH AUGUST 11TH, 2025. THE AMOUNT OF $48,170,885.79 IN THE MONTHLY TRAVEL REPORT. I'LL HAND IT OVER TO BACK TO YOU. ALL RIGHT. GOOD MORNING COMMISSIONERS. FOR THE PERIOD REFERENCED CASH PAYMENTS WERE RELEASED TOTALING APPROXIMATELY $48.17 MILLION, WHICH INCLUDES $5.7 MILLION FOR PAYROLL AND APPROXIMATELY $320,000 FOR INCOME TAX WARRANTS. IN TERMS OF QUANTITY, 1577 INCOME TAX REFUNDS WERE ISSUED AND 1875 [00:25:01] ACCOUNTS PAYABLE CHECKS AND ELECTRONIC PAYMENTS WERE ISSUED. THE FUNDS THAT WERE ISSUED WERE ISSUED FOR PAYMENT BY INDIVIDUALS NOT IN THE CITY CONTROLLER'S OFFICE, AND NOT IN ACCORDANCE WITH THE TERMS OF THE CITY CHARTER. THERE WAS ADDITIONAL INFORMATION, AS YOU KNOW, THAT'S BEEN ADDED TO THIS REPORT AFTER IT'S BEEN SUBMITTED. I JUST WANT TO MAKE CLEAR THAT THAT'S NOT INFORMATION THAT I'VE AUTHORED, AUTHORED, AND I HAVE REQUESTED ADDITIONAL INFORMATION ON THAT FROM THE INTERIM CITY ATTORNEY. AND SO I'M HOPEFUL TO TO GET A RESPONSE ON THAT HERE IN THE NEAR FUTURE. ALSO THIS MORNING, I HAVE FOR YOU OUR JUNE FISCAL YEAR TO DATE TRAVEL REPORT. SO THIS IS SUMMARIZING TRAVEL SPEND BY DEPARTMENT FOR THE BASICALLY THE FULL FISCAL YEAR, THE PAST PRIOR YEAR. AND THAT IS SHOWING THAT A TOTAL OF $1.9 MILLION WAS SPENT ON APPROXIMATELY A $3.5 MILLION BUDGET, OR ABOUT 56% OF THE FUNDS. AND THAT CONCLUDES THE REPORTS THAT WE HAVE THIS MORNING. OKAY. THANKS. WE'LL GO AHEAD AND RECEIVE AND FILE THAT ONE. AND THEN LASTLY, WE'VE GOT OUR TREASURER'S REPORT FOR THE PERIOD OF JULY 31ST, 2025 [7. Treasurer’s Report for Period of July 31, 2025, through August 11, 2025] THROUGH AUGUST 11TH, 2025. GOOD MORNING, COMMISSIONERS. GOOD MORNING. MY NAME IS LEVI BOLT. I'M THE CITY'S INVESTMENT OFFICER. OUR OFFICE HAS, SINCE JULY 1ST, HAS BEEN BUSY COLLECTING OUR SUMMER PROPERTY TAXES DUE TO THE EFFORTS OF OUR DEPUTY TREASURER AS WELL AS OTHERS. WE ARE WE'VE COLLECTED APPROXIMATELY 94% OF THE SUMMER TAX ROLL AT THIS POINT. IT YOU KNOW, TYPICALLY THAT THAT PROCESS CONTINUES THROUGH MARCH 1ST WHEN THOSE ARE TURNED OVER TO THE COUNTY UNDER STATE LAW. DEALING WITH THOSE CASH FLOWS IS SIGNIFICANT TASK. MISS CAHILL OR DEPUTY TREASURER IS FURIOUSLY WORKING ON CALCULATIONS FOR THE VARIOUS CAPTURE DISTRICTS WITHIN THE CITY TO MAKE SURE THAT THOSE CALCULATIONS ARE CORRECT. AND EVERYBODY GETS THE ALL THE VARIOUS COMPONENT UNITS AND DISTRICTS AND WHATNOT GET THE REVENUE THAT THEY'RE ENTITLED TO. IN ADDITION WE'VE BEEN OUR OFFICE HAS BEEN CONTINUING TO WORK ON THE ORACLE IMPLEMENTATION, SPECIFICALLY WITH RESPECT TO MODULE CALLED SIMPRO WHICH IS HOW WE DO OUR INVESTMENT ACCOUNTING SYSTEM THAT THE APPENDIX TO TODAY'S REPORT IS GENERATED OUT OF TRACKING ALL THE INVESTMENTS AND THAT SORT OF THING. SO THAT'S BEEN A LARGE PROJECT GETTING THAT FULLY INTEGRATED WITH ORACLE IN ORDER TO, YOU KNOW, POST OUR INVESTMENT RESULTS AND GENERATE OUR FINANCIAL STATEMENTS. WE'RE VERY CLOSE TO THAT AT THIS POINT. WE'RE ABLE TO GET THOSE INTEREST AND CAPITAL GAIN LOSS ENTRIES INTO OUR GENERAL GENERAL LEDGER MODULES. THERE'S ADDITIONAL PROJECT MANAGEMENT MODULE CALLED TPM THAT IS PROVING TO BE A LITTLE BIT MORE DIFFICULT TO GET THAT DATA INTO, BUT THAT IS A THAT'S A WORK IN PROGRESS. LOOKING TURNING TO THE ECONOMY GENERALLY THERE ARE SOME WARNING SIGNS ON THE HORIZON. GENERALLY SPEAKING THERE, THE FEDERAL RESERVE, WHICH SETS MONETARY POLICY AND THEREFORE INTEREST RATES IN THE UNITED STATES IS IN A BIT OF A DILEMMA DUE TO CHANGES IN TRADE POLICY. WE'RE SEEING BOTH SOME INCREASED CURRENCY INSTABILITY AS WELL AS MUCH HIGHER SIGNIFICANTLY HIGHER PRICES AT THE PRODUCER LEVEL. MOST OF THOSE HAVE YET TO TRICKLE THROUGH TO CONSUMERS. SOME HAVE IT IS MEASURABLE. AND THE NET RESULT IN THE ECONOMY THUS FAR HAS BEEN NEGATIVE. OF COURSE, THE ADMINISTRATION HAS REPEATEDLY STATED THIS IS A SHORT TERM PAIN, LONG TERM BENEFIT SITUATION. IT'S A POLITICAL QUESTION I'M NOT GOING TO GET INTO AT THIS POINT IN TIME. BUT THAT PASS THROUGH OF INCREASED COST OF DOING BUSINESSES, DOING BUSINESS, WHETHER IT'S FROM THE DIRECT TARIFF IMPACT OR SIMPLY HIGHER COSTS DUE TO NAVIGATING THEM WILL WILL DEGRADE THE FED'S ABILITY TO, TO MAINTAIN STABLE PRICES, WHICH IS ONE OF ITS MANDATES. AND UNFORTUNATELY, ITS TOOLS ARE VERY BLUNT FOR HOW IT DOES THAT. RAISING AND LOWERING INTEREST RATES AFFECTS ALL PARTS OF THE ECONOMY SOME MORE SENSITIVE THAN OTHERS. AND UNFORTUNATELY, SOME OF THE MORE SENSITIVE, INTEREST RATE SENSITIVE PARTS OF THE ECONOMY ARE THE ONES WE REALLY NEED, LIKE HOUSING. AND AFFORDABLE HOUSING HAS OBVIOUSLY BEEN A BIG ISSUE. SO THAT DOES CREATE SOME ADDITIONAL HEADWINDS TO TO THE GOALS THAT WE'RE TRYING TO PURSUE [00:30:06] HERE IN OUR CITY. HOWEVER, AT THE MOMENT ECONOMICALLY MARK ZANDI, THE CHIEF ECONOMIST FOR MOODY'S JUST YESTERDAY INDICATED THAT STATE BY STATE BREAKDOWN, MICHIGAN IS ESSENTIALLY TREADING WATER RIGHT NOW THAT WE'RE NOT YET IN RECESSION. SOME STATES ARE SOME ARE NOT. SO WE'RE DOING OKAY AT THE MOMENT. THE THERE IS A RISK OF WHAT IS CALLED DEEP ANCHORING WITH PRICES. THAT'S, IF YOU THINK ABOUT IT IN YOUR MIND, IF YOU'RE IF EVERY TIME YOU GO TO THE GROCERY STORE, FILL UP THE GAS PUMP, THE PRICE IS ROUGHLY THE SAME. IT'S NOT SOMETHING YOU THINK ABOUT. BUT ONCE YOU START TO NOTICE THOSE PRICE INCREASES, CREASES. TAKE THAT INTO ACCOUNT AND THEN THE NEXT STEP IS EXPECT THEM AND CHANGE YOUR BEHAVIOR BASED ON THOSE EXPECTATIONS. THAT'S WHEN INFLATION REALLY GETS PERNICIOUS. AND THAT IS THE DANGER THAT THE TARIFF DRIVEN PRICE INCREASES PRESENT. OVERALL, WE DO EXPECT SHORT TERM INTEREST RATES TO BE CUT IN SEPTEMBER BY A QUARTER OF A POINT. THERE'S A STRONG CONSENSUS IN FINANCIAL MARKETS AROUND A 83 ISH PERCENT LIKELIHOOD THAT THAT'S GOING TO HAPPEN AT THIS POINT IN TIME. OTHERWISE OTHER THAN THAT OUR PORTFOLIO RIGHT NOW IS CLOSE TO ITS ANNUAL HIGH WATER MARK AT $971 MILLION, EARNING 3.63%. IF THERE'S ANY QUESTIONS, I'M HAPPY TO ANSWER. GREAT. THANK YOU. I JUST HAVE A RANDOM QUESTION. DO YOU HAPPEN TO KNOW. SO YOU MENTIONED SOME PARTS OF THE ECONOMY. HAVE WE'VE SEEN THE TRICKLE DOWN OF THE INCREASE IN PRICES? DO YOU KNOW, LIKE, WHAT SORTS OF THINGS? WE'VE ALREADY SEEN SOME OF THE CONSEQUENCES OR EFFECTS OF THE TARIFFS VERSUS NOT. IT'S VERY HIT AND MISS AND IT VERY MUCH DEPENDS. EVEN EVEN WITHIN PARTICULAR PRODUCT CATEGORIES, OFTENTIMES IT'LL DEPEND ON THE DEGREE TO WHICH A PARTICULAR ITEM IS SOURCED FROM FOREIGN COMPONENTS, FOREIGN MADE COMPONENTS VERSUS DOMESTIC. SO UNFORTUNATELY THERE'S NOT AT THIS POINT THERE ARE SOME STATISTICAL TRENDS EMERGING, BUT IT'S NOT A CUT AND DRY THING. OKAY. I'M JUST THINKING FROM A CITY STANDPOINT, LIKE ARE THE THINGS THAT WE DO BUSINESS WITH AS A, AS A CITY OR HAVE THOSE THINGS BEEN IMPACTED YET OR IS THAT SORT OF YET TO COME? SO MOST OF IT'S YET TO COME. OKAY. OKAY. COLLEAGUES, ANY ANY OTHER QUESTIONS OR COMMENTS? ALL RIGHTY. WELL, WE'LL GO AHEAD AND RECEIVE AND FILE THAT AS WELL. AND THEN WE'LL GO AHEAD AND ADJOURN OUR MEETING HERE AT 902. * This transcript was compiled from uncorrected Closed Captioning.