Celebrating the Spring Holidays

PHX Transportation, Infrastructure and Innovation Subcommittee Meeting, March 4, 2020


>>Mayor Gallego: GOOD AFTERNOON. I WOULD LIKE TO CALL THE MARCH 3rd POLICY SESSION OF THE PHOENIX CITY COUNCIL TO ORDER. WELCOME AND THANK YOU FOR JOINING US. WE HAVE A ROBUST AGENDA TODAY. WE WILL HEAR AN UPDATE ON THE CENSUS, OUR BUDGET AND THEN OUR MAIN EVENT FOR ACTION TODAY WILL BE AN INTERNATIONAL STRATEGY UPDATE, AND WE ARE HONORED TO HAVE SO MANY DISTINGUISHED GUESTS WHO ARE JOINING US. WE WILL FIRST TURN TO COUNCIL COUNCIL MEMBERS FOR INFORMATION AND FOLLOW-UP REQUESTS. ANY COUNCIL MEMBERS HAVE — ALL RIGHT. THEN WE WILL MOVE — CITY MANAGER, DO YOU HAVE ANY UPDATES FOR US?>>City Mgr. Zuercher: MAYOR, NOT TODAY. THANK YOU.>>Mayor Gallego: THEN, WOULD YOU PLEASE, IT’S AN IMPORTANT TIME FOR OUR CITY, WOULD YOU PLEASE INTRODUCE THE CENSUS ITEM.>>City Mgr. Zuercher: THANK YOU, MAYOR, MEMBERS OF THE COUNCIL. I’M VERY PLEASED TO HAVE OUR CENSUS TEAM HERE HERE. IT COMES FROM OUR GOVERNMENT RELATIONS OFFICE WHICH IS LED BY FRANK McCUNE. OUR CENSUS COORDINATOR IS ALBERT SANTANA AND ASSISTING HIM AND DOING A HUGE AMOUNT OF WORK HERSELF IS LEILA GAMEZ. I WILL TURN IT OVER TO ALBERT TO WALK US THROUGH THIS IMPORTANT INFORMATION. WE ARE LESS THAN 30 DAYS FROM CENSUS DAY. IT’S HARD TO BELIEVE BUT IT IS ON TOP OF US. ALBERT AND LEILA HAVE BEEN DOING A HUGE AMOUNT OF WORK WITH EACH OF YOU.>>THANK YOU, ED, MEMBERS OF THE COUNCIL, AS STATED, THE CENSUS IS LITERALLY RIGHT AROUND THE CORNER, ABOUT LESS THAN 10 DAYS AWAY BEFORE THE QUESTIONNAIRE GOES LIVE, AND SO THIS HAS BEEN ABOUT AN 18-MONTH JOURNEY OF US PREPARING, WORKING WITH YOU ALL, AND I WOULD LIKE TO GIVE SPECIAL RECOGNITION, OF COURSE, TO COUNCILMEMBER WILLIAMS, GARCIA AND STARK. THANK YOU SO MUCH FOR YOUR ASSISTANCE AND GUIDANCE ON OUR CENSUS AD HOC COMMITTEE. THAT HAS BEEN REALLY INSTRUMENTAL FOR US, AS WELL AS THE WORK THAT’S BEEN DONE WITH OUR COMMUNITY PARTNERS. WITH THAT, I’LL KIND OF JUMP RIGHT IN. AGAIN, WHY DO WE CONDUCT A CENSUS? AS A PART OF THE CONSTITUTIONAL MANDATE A HEAD COUNT EVERY 10 YEARS OF EVERYONE RESIDING IN THE NATION, AND AS A PART OF THAT, SOME RESULTS THAT ARE DETERMINED BY IT ARE THE U.S. CONGRESSIONAL REPRESENTATION, AS WELL AS HUNDREDS OF BILLIONS OF DOLLARS IN FEDERAL RESOURCES THAT ARE ALLOCATED THROUGHOUT THE ENTIRE COUNTRY. SO FROM AN ANNUAL PERSPECTIVE ON THE LOCAL LEVEL, WHAT DOES THIS MEAN TO OUR STATE AS WELL AS TO OUR CITY? AGAIN, ON AN ANNUAL BASIS FOR THE STATE OF ARIZONA, AN ACCURATE CENSUS COUNT REPRESENTS $20 BILLION, AND IT REPRESENTS OVER 55 FEDERAL PROGRAMS THAT ARE ALLOCATED OUT THROUGHOUT THE STATE, AND THEN FOR US, AT THE LOCAL LEVEL AS THE CITY OF PHOENIX, IT REPRESENTS AN IMPACT OF 886 MILLION DOLLARS ON AN ANNUAL BASIS FOR MANY PROGRAMS THAT MEAN SO MUCH TO OUR COMMUNITY, EVERYTHING FROM TRANSPORTATION, OUR HEAD START PROGRAMS, AFTER-SCHOOL PROGRAMS, LIBRARIES, PUBLIC SAFETY, ET CETERA. SO THIS YEAR IS AN EXAMPLE OF WHAT TO EXPECT. SO BEGINNING NEXT WEEK, AS WE STATED, AN INVITATIONAL LETTER WILL GO OUT FROM THE CENSUS BUREAU TO EVERY HOUSEHOLD THROUGHOUT THE COUNTRY. HERE IN THE PRESENTATION IS AN IMAGE OF WHAT THAT LETTER WILL LOOK LIKE. IT WILL HAVE INFORMATION AS TO THE IMPORTANCE OF THE CENSUS AS WELL AS INSTRUCTIONS ON HOW HOUSEHOLDS CAN RESPOND. FROM THE WEEK OF MARCH 9th, ALL THE WAY THROUGH THE END OF APRIL — TO THE END OF APRIL, THERE WILL BE FIVE REMINDERS. THOSE REMINDERS WILL COME IN THE FORM OF EITHER A LETTER, AS YOU SEE ON THE SCREEN, AS WELL AS IN A POSTCARD. AFTER APRIL, THAT WILL BEGIN THE CENSUS BUREAU’S PROCESS CALLED NONRESPONSE FOLLOW-UP AND REALLY WHAT THAT IS IS THEIR DOOR KNOCKING OPERATION. SO SOME THINGS FOR THE PUBLIC AND MAYOR AND COUNCIL TO KNOW IS THE WAYS TO RESPOND. WE’VE TALKED ABOUT THIS BEFORE IN PREVIOUS COUNCIL MEETINGS, BUT THERE ARE SOME UNIQUE THINGS FOR THE 2020 CENSUS. FIRST, THE NEW WAYS OF RESPONDING WHICH IS DIGITAL BY PHONE. FOR THE FIRST TIME IN THE CENSUS BUREAU’S HISTORY, HOUSEHOLDS AND INDIVIDUALS WILL BE ABLE TO RESPOND BOTH IN A DIGITAL FORMAT AS WELL AS BY PHONE. THOSE WILL BE AVAILABLE IN ENGLISH AS WELL AS 12 LANGUAGES. FOR THOSE INDIVIDUALS THAT STILL WANT TO RESPOND IN THE TRADITIONAL WAY VIA PAPER FORMAT, THAT IS STILL AVAILABLE, AND WE WANT TO MAKE SURE THAT THE COMMUNITY IS WELL AWARE OF THAT. IF INDIVIDUALS DO PREFER RESPONDING BY THE PAPER FORM THAT IS AVAILABLE, AND THOSE WILL BE MAILED OUT AFTER APRIL 8th. SO AS FAR AS FROM THE LOCAL PERSPECTIVE, WE HAVE BEEN WORKING HARD WITH OUR REGIONAL PARTNERS AT MARICOPA ASSOCIATION OF GOVERNMENTS, AS WELL AS OTHER CITIES AND COMMUNITY MEMBERS, AND REALLY MAKING SURE THAT WE’RE DRIVING PEOPLE TO OUR WEBSITE WHICH IS GOING TO BE A WAY FOR THEM TO BE ABLE TO RESPOND ONCE THE FORM GOES LIVE NEXT WEEK. WE ALSO DO HAVE OUR DIRECT EMAIL CAMPAIGN. THROUGH OUR EMAIL CAMPAIGN WE WILL ALSO BE ABLE TO ENCOURAGE AND DRIVE PEOPLE TO THE WEBSITE SO THEY WILL BE ABLE TO LEARN MORE AS WELL AS RESPOND. WE DID ALSO IMPLEMENT A TEXT MESSAGING CAMPAIGN AND SO INDIVIDUALS CAN RESPOND EITHER THROUGH OUR iCOUNT, WE ALSO HAVE THAT AVAILABLE IN SPANISH, SO WE AGAIN ARE TRYING TO BUILD MULTIPLE WAYS AND MULTIPLE LAY HERBS TO MAXIMIZE AWARENESS AS WELL AS THE MOST ACCESSIBILITY FOR PEOPLE TO BE ABLE TO RESPOND. OTHER THING THAT WE’RE VERY PROUD OF AND THROUGH THE WORK AT THE PARTNERSHIP WITH THE FEDERAL GOVERNMENT, LOCAL, AS WELL AS REGIONAL, IS A VERY COMPREHENSIVE, AGGRESSIVE MEDIA BUY TO MAKE SURE THAT WE HAVE OVERALL AWARENESS. AS YOU SEE, WE’VE GOT WELL OVER 2,000 TV SPOTS THAT WILL RUN AS A PART OF OUR CAMPAIGN, A LITTLE UNDER 5,000 RADIO SPOTS, MILLIONS OF DIGITAL IMPRESSIONS, WHICH REALLY IS REFLECTIVE OF AN AGGRESSIVE SOCIAL AND DIGITAL CAMPAIGN. WE WILL HAVE OVER — WE WILL HAVE 20 BILLBOARDS THAT WILL BE THROUGHOUT THE GREATER PHOENIX AREA, AS WELL AS PRINT ADS IN A VERY DIVERSE GROUP OF DIFFERENT PRINTING OPTIONS. AND THEN POSTERS THAT WE’LL BE HAVING AT ALL CITY FACILITIES, AT DIFFERENT BUSINESSES, RECREATION CENTERS, HEAD START. SO WE’RE REALLY TRYING TO MAKE SURE WE HAVE MULTIPLE LAYERS OF CREATING AWARENESS. THE NEXT SLIDE IS REALLY GOING TO ALLOW YOU A PREVIEW TO A COMMERCIAL THAT WE’VE — THAT WE PRODUCED AND SOME THINGS I WOULD LIKE TO HIGHLIGHT BEFORE WE PLAY THEM IS THAT ALL OF THE INDIVIDUALS IN THESE COMMERCIALS ARE LOCAL FROM THE PHOENIX AREA, THEY COME FROM DIVERSE BACKGROUNDS AND ALL WERE PRODUCED IN THE PHOENIX AREA. OUR COMPLETE COUNT COMMITTEE THOUGHT IT WAS IMPORTANT THAT WE HAVE LOCAL TALENT AND PEOPLE WHEN THEY SEE THE COMMERCIALS THEY SEE PHOENICIANS AS A PART OF IT. SO WE WANTED TO MAKE SURE WE WENT THAT EXTRA EFFORT A DID THAT. SO WE’RE VERY PROUD OF THESE. I AM.>>I’M A SINGLE MOM WORKING FULL TIME AND I COUNT FOR EDUCATION.>>I’M A RETIRED PROFESSOR, GRANDFATHER AND iCOUNT FOR THE ARTS. I’M A THEATER STUDENT. iCOUNT FOR TRANSPORTATION OPTIONS.>>I STARTED BY OWN COMPANY, AND iCOUNT FOR SMALL BUSINESS.>>WHEN YOU PARTICIPATE IN THE CENSUS YOU HELP SUPPORT IMPORTANT PROGRAMS AND RESOURCES THAT BENEFIT EVERYONE. COUNT FOR OUR COMMUNITY. COMPLETE THE CENSUS TODAY. LEARN HOW AT iCOUNT2020.INFO.>>THE SEX ONE IS A 15 SECOND VERSION FOR TV AS WELL AS SUPPORTING OUR SOCIAL CAMPAIGN.>>I’M A MUSIC STUDENT AND iCOUNT FOR THE ARTS.>>I’M A NATIVE AMERICAN YOUTH AND iCOUNT FOR MY COMMUNITY. I’M A SINGLE MOM AND iCOUNT FOR EDUCATION.>>COUNT FOR OUR COMMUNITY. COMPLETE THE CENSUS TODAY. LEARN HOW AT iCOUNT2020.NFO.>>THE FINAL EXAMPLE IS AN EXAMPLE ON THE SPANISH SIDE. (RADIO SPOT IN SPANISH).>>SO EVERYTHING THAT WE’VE DONE ON TV AND RADIO IS DONE IN ENGLISH AS WELL AS IN SPANISH. SO WE WANTED TO MAKE SURE YOU ALL NEW THAT AS WELL AS. THE NEXT QUICK EXAMPLES ARE THINGS FROM OUR SOCIAL AND DIGITAL. THESE ARE SCREEN SHOTS FROM OUR FACEBOOK AS WELL AS INSTAGRAM PAGES GETTING PEOPLE READY FOR THE FORM TO GO LIVE NEXT WEEK. HERE IS A COUPLE EXAMPLES OF BILLBOARDS YOU’LL START TO SEE THROUGHOUT THE PHOENIX AREA, AGAIN, KEEPING EVERYTHING IN A BILINGUAL FORMAT WITH OUR LOCAL TALENT. ONE WAS SHOT BY A STUDENT IN THE ASU DOWNTOWN CAMPUS AND THE THREE KIDS WAS SHOT OUTSIDE ENCANTO PARK. THESE HERE ARE SOME EXAMPLES OF POSTERS THAT WE WILL HAVE THROUGHOUT ALL OF OUR CITY RECREATION CENTERS, OUR 17 LIBRARIES, 63 HEAD START PROGRAMS, AS WELL AS ON THE RIGHT ARE — IS AN EXAMPLE OF SOME SCHOOL PROSERS WE ARE DISTRIBUTING WORKING WITH OUR YOUTH AND EDUCATION OFFICE AS WELL AS WITH THE CENSUS EDUCATION BUREAU PARTNERSHIP SPECIALISTS. WHILE WE FEEL VERY CONFIDENT AND HAPPY WITH OUR MEDIA PLAN AND THE LAYERS WE HAVE PRODUCED, AT THE BEGINNING, MAYOR AND COUNCIL MADE IT ADAMANT WE ALSO HAVE A COMPREHENSIVE GRASS ROOTS EFFORT. HERE TO TALK TO YOU ALL ABOUT THE GRASS ROOTS EFFORTS IS OUR CENSUS COORDINATOR LEILA GAMEZ.>>THANK YOU, ALBERT. GOOD AFTERNOON, MAYOR AND COUNCIL. BUILDING ON ALBERT’S PRESENTATION, ONE OF THE CAMPAIGNS THAT WE NOTICED WE NEEDED TO ALSO ENSURE THAT THE CITY SUPPORTED WAS A SECONDARY CAMPAIGN THROUGH THE iCOUNT2020 EFFORT, WHICH IS A MY FIRST CENSUS CAMPAIGN. IN 2010 THERE WERE OVER 55,000 CHILDREN IN ARIZONA THAT WERE NOT COUNTED CORRECTLY IN THE CENSUS, AND THAT’S A HUGE LOSS, AND DEFINITELY A HUGE PLANNING LOSS FOR US AS A CITY. SO TO ENSURE THAT THAT DOESN’T HAPPEN, WE CREATED THE SECONDARY CAMPAIGN OF MY FIRST CENSUS. THROUGH THE CAMPAIGN WE HAVE HAD ALREADY TWO EVENTS. WE’RE LOOKING TO HOLD THE THIRD ONE AT THE END OF MARCH. WE’VE ENGAGED WITH OVER 400 CHILDREN ALREADY, AND WE’VE BEEN ALSO HIGHLIGHTED AS NATIONAL BEST PRACTICE BY THE AMERICAN LIBRARY ASSOCIATION, NOTING HOW WE ARE INTEGRATING FAMILIES AND LIBRARIES AND THE IMPORTANCE OF COUNTING. WE ALSO HAVE HAD NATIONAL NEWS COVERAGE. WE’VE HAD OVER 26,000 VIEWS ONLINE FOR THE COVERAGE WE RECEIVED REGARDING THE MY FIRST CENSUS CAMPAIGN AND WE’RE LOOKING TO STRENGTHEN THIS CAMPAIGN BY WORKING WITH FOUR LOCAL SOCIAL INFLUENCERS. WE’RE LOOKING TO REACH ABOUT 620,000 FOLLOWERS THROUGH THOSE SOCIAL INFLUENCERS, AND WE HOPE TO MAKE THIS A BIGGER CAMPAIGN, CELEBRATING THAT EFFORT OF CHILDREN AND THEIR FIRST TIME THEY ARE BEING COUNTED, ESPECIALLY CHILDREN UNDER 10. ANOTHER EFFORT THAT I WOULD BE REMISS IF I DID NOT MENTION WOULD BE THE INTERDEPARTMENTAL SUPPORT THAT WE HAVE RECEIVED IN THIS EFFORT. ALBERT AND I, WE JOKE, IT’S NOT AN ALBERT CENSUS OR LEILA CENSUS. IT’S REALLY A NATIONAL CENSUS, IT’S A PHOENIX CENSUS. THAT HAS NOT FALLEN SHORT WITH ALL THE DEPARTMENTS STEPPING UP TO SUPPORT OUR EVERY EFFORT IN EVERY WAY THEY COULD. WE HAVE WORKED EARLY ON WITH THE NEIGHBORHOOD SERVICES DEPARTMENT IN IDENTIFYING OVER 437 NEIGHBORHOOD ASSOCIATIONS AND ORGANIZATIONS THAT WE CAN TAP INTO TO BE OUR BOOTS ON THE GROUND. WE’VE ALSO WORKED WITH THE PUBLIC TRANSIT DEPARTMENT IN IDENTIFYING LOCATIONS FOR BUS SHELTER POSTERS SO THAT WE CAN GET THOSE FOLKS ON THE RESOURCE THAT ARE USING THAT BENEFIT TO ENSURE THEY COMPLETE THE CENSUS. WE’VE WORKED WITH OUR WATER SERVICES DEPARTMENT, INCLUDING A BLUSH EVERY MONTH IN THE WATER SERVICES BILL. WE’VE WORKED WITH OUR PUBLIC INFORMATION OFFICE ENSURING THAT WE’VE INCLUDED A COLUMN IN OUR PHOENIX PAYS NEWSLETTER. AND OUR MOST RECENT, WHILE NOT INTERDEPARTMENTAL, PER SE, BUT DEFINITELY A REGIONAL EFFORT IS WORKING WITH VALLEY METRO. WE WERE ABLE TO SECURE VALLEY METRO SUPPORT IN WRAPPING A LIGHT RAIL TRAIN. ONE SIDE IS GOING TO BE ENGLISH. THE OTHER SIDE IS GOING TO BE SPANISH. AGAIN, JUST SUPPORTING THE INFORMATION THAT IT’S IMPORTANT TO COMPLETE THE CENSUS. TO BUILD ON THAT WE BROUGHT EARLY ON TO YOU THE VEHICLES THAT WE WERE SO SUCCESSFUL TO ACHIEVE EARLY ON. IN THAT WE’VE BEEN OUT TO OVER 25 EVENTS AND WE CONTINUE TO GROW EVERY WEEKEND. THERE’S NOT A SHORTAGE OF EVENTS REQUESTS FOR US TO BRING OUT OUR VANS. WE’VE ENGAGED APPROXIMATELY — OVER 300,000 FOLKS IN THE DIFFERENT OPPORTUNITIES THAT WE’VE HAD, AND AS I STATED, THESE CONTINUE TO GROW. TO HIGHLIGHT A YOU TO OF OUR BIG UPCOMING EVENTS, WE HAVE A CENTRAL CITY SOUTH EVENT, A COMMUNITY CONNECTIONS FAIR, WE HAVE MELROSE ON 7th AVENUE. WE’RE ALSO LOOKING TO WORK WITH UNIVISION ON HOSTING A TOWN HALL EVENT WITH UNIVISION WHERE UNIVISION IS GOING TO INVITE PEOPLE TO COME TO THEIR CENTER TO COMPLETE THE CENSUS IF THEY NEED TO. WE’RE LOOKING AT BEING IN PHOENIX PRIDE, SLOPEFEST AND I RECYCLE PHOENIX AND MANY MORE. THIS IS A SMALL SAMPLE OF THE MANY EVENTS WE HAVE LINED UP. ONE OF THE EFFORTS SUPER POSH FOR OUR COMPLETE COUNT COMMITTEE WAS THE INTEGRATION OF A GRANT FOR COMMUNITIES, GRASS ROOTS ORGANIZATIONS, TO GET SOME TYPE OF ASSISTANCE IN HELPING US DO OUTREACH. SO THE COMPLETE COUNT COMMITTEE AND THE BUSINESS AND FINANCE GROUP OF THAT COMMITTEE WORKED — IS WORKING TO FUND RAISE EFFORTS FOR US AND IT’S TO SUPPORT THESE COMMUNITY GRASS ROOTS ORGANIZATIONS IN OUTREACH. WE ARE LOOKING TO GRANT UP TO 5,000 DOLLARS TO EACH OF THESE COMMUNITY ORGANIZATIONS. THEY’RE COMPLETING AN APPLICATION ONLINE, SUBMITTING IT TO US, WE’LL REVIEW AND GRANT THAT AMOUNT. OUR TIMING IS BETWEEN MARCH AND JUNE OF THIS YEAR. AND WE’RE VERY EXCITED TO ANNOUNCE THAT WE WERE ABLE TO SECURE A PARTNERSHIP WITH THE PHOENIX IDA AND THE ARIZONA COMMUNITY FOUNDATION. THE PHOENIX IDA WILL SERVE — WILL HELP US IN MATCHING FUNDS. IF OUR COMMITTEE RAISES UP TO $100,000, THE IDA WILL MATCH UP TO $100,000. SO WE HAVE A POTENTIAL OF $200,000. AS THIS EFFORT EVOLVES WE’RE HAPPY TO COME BACK AND REPORT TO YOU ORGANIZATIONS THAT HAVE ASSISTED US WITH THIS OUTREACH. ONE OF THE EFFORTS THAT IS SUPER IMPORTANT IN ENSURING THESE GRASS ROOTS COMMUNITIES GET THE INFORMATION IS DOING CANVASSING EFFORTS. AS ELECTED OFFICIALS YOU ALL KNOW YOU GO DOOR TO DOOR WHEN IT’S ELECTION TIME, AND WHILE NOT AN ELECTION-RELATED EFFORT, IT’S DEFINITELY A CIVIC ENGAGEMENT EFFORT, AND SO IT REQUIRES US TO MAKE SURE WE ENGAGE WITH THE COMMUNITY. SO ENSURING THAT WE HAVE THIS CANVASSING EFFORT, WE’RE LOOKING TO DO UP TO EIGHT EVENTS BETWEEN MARCH 12th AND MAY 12th, AND THESE EVENTS WILL BE HELD AT LEAST ONE IN EACH DISTRICT AND WILL ALLOW US TO WORK WITH YOU TO IDENTIFY AREAS WHERE YOU WOULD LIKE US TO GO AND OUTREACH AND YOU ARE WELCOME TO JOIN US IN THESE DOOR KNOCKING EVENTS. WE WILL HAVE PEOPLE WITH THESE T-SHIRTS ON AND THEY’LL — THEY WILL BE HANDING OUT AND DROPPING OFF THE DOOR HANGERS THAT YOU SEE THERE, JUST GIVING — REINFORCING THAT INFORMATION. SO WITH THAT I WILL RETURN IT TO ALBERT.>>REALLY, THAT CONCLUDES OUR PRESENTATION, MAYOR AND CITY COUNCIL, BUT AS A GENERAL STATEMENT, AGAIN, JUST WANT TO THANK YOU FOR YOUR LEADERSHIP AND YOUR SUPPORT. SEVERAL OF YOU WE’VE ASKED TO HELP US DO SOME INTERVIEWS ON WEEKENDS AND DURING THE WEEKDAY. SO THANK YOU SO MUCH FOR SUPPORTING US IN HELPING TO GET THOSE MESSAGES OUT. THE OVERALL IDEA WAS TO MAKE SURE WE HAD COMPLETE COVERAGE IN OUR CITY AND OBVIOUSLY HAVING A FOCUS ON AREAS THAT HAVE BEEN TRADITIONALLY UNDERCOUNTED AND TRYING TO MAKE SURE WE HAVE MULTIPLE WAYS IN CONNECTING WITH THOSE COMMUNITIES. WITH THAT WE WOULD BE HAPPY TO ANSWER ANY QUESTIONS.>>Mayor Gallego: THANK YOU. THANK YOU FOR YOUR HARD WORK AND CONVENING CITY DEPARTMENTS. IT’S BEEN AN HONOR FOR OUR CITY TO GET RECOGNITION, WHETHER FROM LIBRARIES OR ONE OF THE LEADING PUBLIC-PRIVATE PARTNERSHIPS, REALLY, FIRST OF ITS KIND IN THE NATION. IT HAS BEEN FABULOUS SEEING YOU AT COMMUNITY EVENTS AND REALLY ENGAGING. ALSO APPRECIATE YOU HIGHLIGHTING OUR KIDS. I THINK WE HAVE THE CUTEST KIDS IN PHOENIX, AND THE MY FIRST CENSUS CAMPAIGN IS HELPING US SHOW OFF THAT GREAT ASSET WHILE REMINDING OUR COMMUNITY OF THE VERY SERIOUS POINT THAT TAKING THE TIME TO DO A CENSUS WILL INVEST IN THE FUTURE OF THOSE YOUNG PEOPLE. WE HAVE ALSO HAD STRONG PARTNERS FROM OTHER CITIES, THE MARICOPA ASSOCIATION OF GOVERNMENTS CONNECTING OUR TWO ITEMS — OR TWO OF OUR ITEMS ON TODAY’S AGENDA. WANT TO THANK THE CONSULAR CORPS BUT DICKY THE CONSULAR FOR PARTNERING TO TURN OUT AND TO TALK ABOUT THE IMPORTANCE OF THE CENSUS WITH EVERYONE IN OUR COMMUNITY. SO THANK YOU FOR THAT PARTNERSHIP. MANY TRUSTED VOICES HAVE COME TOGETHER TO TELL OUR COMMUNITY MEMBERS THAT IT IS IMPORTANT TO PARTICIPATE IN THE CENSUS. OUR MEDIA COMMUNITY HAVE ALSO BEEN GREAT PARTNERS. WE DO HAVE ONE CARD FROM LORIBERG SAPP IF YOU WOULD LIKE TO — WE HAVE TWO MINUTES TO PROVIDE WITH US COMMENTS AND THANK YOU FOR YOUR PARTNERSHIP.>>THANK YOU. MAYOR GALLEGO AND MEMBERS OF THE PHOENIX CITY COUNCIL, MY NAME IS LORI BERG SAPP AND I AM POINT ON THE 2020 CENSUS FOR THE MARICOPA ASSOCIATION OF GOVERNMENTS. I WOULD LIKE TO COMMEND THE CITY OF PHOENIX FOR THE REGIONAL CAMPAIGN AS WELL AS MANY OF THE LOCAL EFFORTS NOTED HERE TODAY. THE CITY HAS TRULY LED THE WAY ON A NUMBER OF REGIONAL SIEVES AND SHARED THEIR IDEAS, STRATEGIES AND COLLATERAL EFFORTS — ASSETS TO THE BENEFIT OF ALL. YOUR OUTREACH IS EFFECTIVE ACROSS THE VALLEY AND THE REGION AS SO MANY PEOPLE COME TO PHOENIX TO WORK AND TO PLAY. THE COLLABORATION BETWEEN MAG AND THE CITY OF PHOENIX HAS BEEN OUTSTANDING AND WE ARE GRATEFUL. I’D LIKE TO RECOGNIZE CENSUS DIRECTOR ALBERT SANTANA AND CENSUS COORDINATOR LEILA GAMEZ WHO HAVE BEEN INSTRUMENTAL IN THE SUCCESS OF THESE CAMPAIGNS AS WE WORK SIDE BY SIDE TO ENSURE EVERYONE IN THE REGION IS COUNTED. MANY, MANY THANKS FOR YOUR SUPPORT. AND THANKS FOR YOUR TIME.>>Mayor Gallego: THANK YOU FOR YOUR PARTNERSHIP. COUNCILWOMAN STARK.>>Councilwoman Stark: THANK YOU. IT’S BEEN A PLEASURE TO SERVE ON THE COMMITTEE, BUT I DO HAVE A QUESTION. MY STAFF WAS AT A MEETING WITH SUNNYSLOPE BLOCK WATCH MEETING, AND SOME OF THE RESIDENTS IN WEST SUNNYSLOPE HAVE ALREADY GOTTEN SOMETHING FROM THE CENSUS, BUT THAT’S NOT ACTUALLY THE TRUE CENSUS WE DO EVERY 10 YEARS. COULD YOU MAYBE BRIEFLY TALK ABOUT THE MONTHLY — THANK YOU.>>MAYOR GALLEGO, COUNCILMEMBER STARK, WHAT THE CENSUS BUREAU DOES SURVEY WORK ON AN ANNUAL BASIS AND THE AMERICAN COMMUNITY SURVEY. IT’S A MUCH LONGER SURVEY AND HAS MANY MORE QUESTIONS. THAT’S THE ONE PEOPLE WOULD HAVE GOTTEN. I HAPPENED TO GET ONE IN DECEMBER. BUT IT IS ABSOLUTELY CRITICAL THAT PEOPLE DO STILL FILL OUT THE ONE THAT’S THE DECENNIAL, WHICH IS A MUCH SHORTER VERSION, ONLY HAS NINE QUESTIONS AND THAT WILL GO OUT NEXT WEEK ON MARCH 12th. YES, AGAIN ON AN ANNUAL BASIS THEY COLLECT DATA FROM THE SAMPLE SERVING THROUGHOUT THE ENTIRE COUNTRY BUT THE DECENNIAL IS THE ONE THAT WE NEED THEM TO ABSOLUTELY RESPOND TO BEGINNING MARCH 12th.>>COUNCILMEMBER GARCIA.>>THANK YOU ALL FOR THE WORK. IT’S BEEN GREAT TO SEE YOU OUT IN COMMUNITY EVENTS. OUR KIDS GOT TO JUMP IN THE VANS AND PLAY AROUND. THAT WAS GREAT. I STILL — PARTICULARLY HAVE SOME CONCERN ABOUT UNDOCUMENTED POPULATION. I KNOW THE QUESTION OF STATUS IS NO LONGER ON THE CENSUS. I JUST AM WONDERING IF YOU RAN INTO THAT, AND I ALSO SAW AN EXAMPLE FROM THE CITY OF PASADENA WHO BASICALLY PASSED A RESOLUTION TO MAKE SURE THAT CONFIDENTIALITY WAS PROTECTED. I’M JUST WONDERING ANYTHING ELSE YOU MAY NEED AND ALSO TO MY COLLEAGUES OUT THERE — UP HERE IF THAT’S SOMETHING WE CAN GET DONE OR TO STAFF, BUT, YEAH, ANY OTHER ROADBLOCKS YOU’RE RUNNING INTO OR ANY OTHER WAYS IN WHICH WE COULD SUPPORT WOULD BE GOOD TO HEAR.>>MAYOR, COUNCILMEMBER GARCIA, AS YOU STATED, WE DO WANT TO MAKE SURE PEOPLE KNOW THAT THE QUESTION THAT — ABOUT CITIZENSHIP IS NO LONGER A PART AND WILL NOT BE A PART OF THE DECENNIAL. SO WE’VE HAD TO CONTINUALLY REPEAT THAT MESSAGE AND MAKE SURE PEOPLE KNOW. AS FAR AS SOME OF THE WORK THAT WE DID, ESPECIALLY WITH OUR FOCUS GROUPS, WITH DACA STUDENTS AS WELL AS THE UNDOCUMENTED COMMUNITY, THE FEEDBACK WE GOT FROM THOSE INDIVIDUALS THAT PARTICIPATED, AS WELL AS DIFFERENT COMMUNITY EVENTS WE HAD, WAS MAKING SURE OUR COMMUNITY UNDERSTAND THE CONNECTION BETWEEN PARTICIPATING IN THE CENSUS AND THE CONNECTION WITH RESOURCES FOR FAMILIES, AND ESPECIALLY FOR CHILDREN, THE NUTRITION OF CHILDREN, AS WELL AS SCHOOLS. SO WE’VE MADE SURE ALL OUR MESSAGING SUPPORTS THAT INFORMATION THAT HELPS TO SUPPORT THE FAMILY. IN REGARDS TO ANY TYPE OF A RESOLUTION, ET CETERA, THAT WASN’T SOMETHING THAT WE BROUGHT UP AS A PART OF OUT OF OUR CAMPAIGN. WE REALLY JUST WORKED CLOSELY WITH THE UNDOCUMENTED COMMUNITY, DACA STUDENTS, AND THE FINAL PIECE I WOULD SAY, WE DID HAVE THE BENEFIT OF BEING ABLE TO WORK WITH A LOT OF COMMUNITY ORGANIZATIONS THAT WORK IN THAT SPACE. SPECIFICALLY, ONE ARIZONA HAD AN AGGRESSIVE AND GREAT RESOURCE OF COALITIONS OF ABOUT 20 DIFFERENT COMMUNITY-BASED ORGANIZATIONS. SO WE WERE WITH THEM EVERY MONTH FOR THE LAST YEAR AND CONTINUED TO LET THEM KNOW THAT HOWEVER WE AS A CITY CAN SUPPORT THEM. WE HAVE BEEN INVITED TO GO OUT TO THEIR EVENTS WITH OUR VEHICLES W OUR INFORMATION, AND THEN ALSO BEING ABLE TO GIVE THEM THE RESOURCES BECAUSE ON MANY OF THE OCCASIONS THEY NEED TO BE THE TRUSTED VOICES, SPECIFICALLY WHEN IT CAME TO CONFIDENTIALITY. SO WE HAVE ALWAYS PUT THAT ON OUR COLLATERAL. SO THAT’S KIND OF THE COMPREHENSIVE APPROACH WE’VE TRIED TO DO, BUT ANY IDEAS AND ANYTHING ELSE THAT WE CAN DO, BECAUSE WE WANT TO KEEP PUSHING HARD AS WE ARE NOW GETTING INTO THE FORM GOING LIVE.>>Mayor Gallego: COUNCILMAN NOWAKOWSKI.>>Councilman Nowakowski: THANK YOU, MAYOR. ALBERT, LEILA, THANK YOU FOR EVERYTHING YOU ARE DOING OUT THERE, WORKING WITH THE SPIRITUAL COMMUNITY, THE RELIGIOUS, THE PASTORS, AND SPREADING THAT MESSAGE AND HAVING HOPE OUT THERE THAT WE’RE GOING TO ACTUALLY WORK WITH PEOPLE. ONE OF THE THINGS THAT I’VE BEEN HEARING FROM INDIVIDUALS IS THAT THEY’RE AFRAID OF THE CENSUS. AND THE OTHER THING IS THAT THEY REALLY DON’T KNOW WHAT THE CENSUS IS ALL ABOUT AND GOING ON THESE TALK SHOWS AND GOING OUT TO THE COMMUNITY AND INDIVIDUALS ARE SURPRISED THAT EACH PERSON IS WORTH $533, AND ABOUT HOW SCHOOLS AND FUTURE STREETS AND ALL THAT IS REALLY ALLOCATED BY THE CENSUS. THOSE ARE REALLY IMPORTANT POINTS. JUST KEEP THAT UP. I AGREE WITH COUNCILMAN GARCIA THAT WE SHOULD COME UP WITH SOMETHING FROM THE COUNCIL MAKING SURE THAT PEOPLE FEEL SAFE AND THAT THEY’RE NOT AFRAID TO FILL IT OUT BECAUSE OF THEIR NATURAL STATUS HERE IN THE UNITED STATES.>>Mayor Gallego: THANK YOU. THANK YOU TO OUR COUNCIL MEMBERS FOR YOUR LEADERSHIP ON THIS ISSUE. THANK YOU TO THEN MAYOR WILLIAMS FOR CREATING OUR COMPLETE COUNT COMMITTEE. AND THANK YOU FOR OUR STAFF FOR YOUR WORK IN EXCELLENT PRESENTATION. WE NEXT MOVE TO OUR FIVE-YEAR GENERAL FUND FORECAST. WE ARE EXCITED TO WELCOME JEFF BARTON TO THE PODIUM, AND I WANT TO BE AMONG MANY TO CONGRATULATE YOU. THE CITY MANAGER JUST ANNOUNCED THIS WEEK THAT JEFF BARTON WILL BE PROMOTED TO DEPUTY CITY MANAGER. [APPLAUSE]>>THANK YOU.>>Mayor Gallego: I WILL TURN IT TO THE CITY MANAGER TO FURTHER INTRODUCE THE ITEM.>>City Mgr. Zuercher: THANK YOU. SO YOU NOTED THAT THERE IS A DIRECT LINE BETWEEN THE PREVIOUS ITEM ON THE CENSUS AND OUR CITY BUDGET, AND THAT IS IMPORTANT FOR US WHEN IT COMES TO JUST BASIC REVENUE WE GET FROM THE FEDERAL GOVERNMENT FOR COMMUNITY DEVELOPMENT BLACK GRANTS, LOW INCOME HEATING. AS COUNCILMAN NOWAKOWSKI NODE, STREET TRANSPORTATION FUNDING. ALL THOSE THINGS ARE SUPPORTED BY A COMPLETE COUNT CENSUS. SO THANK YOU FOR MAKING THAT CONNECTION. WE’RE HERE TODAY ON OUR CYCLE. THIS IS THE FIRST STEP IN THE 2020-2021 BUDGET CYCLE AND JUST TO REFRESH MEMORIES, THE BUDGETED OPTION PROCESS IS NOW UNDER WAY AND SO TODAY IS OUR FIRST PIECE OF THAT, A FIVE-YEAR FORECAST AND GENERAL FUND STATUS. IN TWO WEEKS WE’LL BRING FORWARD A TRIAL BUDGET, WHICH IS A CONVERSATION STARTER WITH THE COUNCIL AND WITH THE COMMUNITY. AFTER THAT, FROM APRIL 2nd THROUGH 22nd, WE HAVE 19 COMMUNITY BUDGET HEARINGS WITH EACH ONE OF YOU IN YOUR DISTRICTS TO SOLICIT COMMUNITY INPUT. MR. BARTON WILL TELL YOU A LITTLE MORE. WE ALSO HAVE AN ONLINE TOOL TO FAKE THAT FEEDBACK AS WELL. WE WILL THEN HAVE TWO COUNCIL MEETINGS IN MAY WHERE THERE IS AN OPPORTUNITY TO HAMMER OUT MORE DETAILS ON THE BUDGET. MAY HAVE 5th. THEN THE FIRST VOTE OF THE COUNCIL ON IS ON MAY 19th. THEN WE GET INTO THE STATE’S FORMALLY REQUIRED ADOPTION PROCESS WHERE IT FEELS LIKE EVERY MEETING WE HAVE ANOTHER BUDGET VOTE ON JUNE 3rd AND 17th. AT THE SAME TIME OUR CAPITAL IMPROVEMENT BUDGET IS MOVING FORWARD AS WELL. THEN WE FINISH ON JULY 1st WITH A PROPERTY TAX LEVY ADOPTION. SO AS YOU CAN SEE FROM THIS CHART, TODAY IS THE FIRST STEP OF SEVERAL AS WE SET OUT ON THIS. IT’S A BETTER BUDGET PICTURE TO GIVE THAN IT WAS IN THE LAST 10 YEARS. SO 10 YEARS AGO — OR IT’S BEEN 10 YEARS SINCE THE MAJOR RECESSION AFFECTED OUR BUDGET, AND IT’S HARD TO BELIEVE IT’S BEEN THAT LONG, BUT IN THE 2010-2011 BUDGET CYCLE WE HAD TO DEAL WITH THE 200-PLUS MILLION DOLLAR BUDGET DEFICIT. AND THEN IN 2014 WE SUFFERED A SECOND DOWNTURN WHERE WE HAD TO REDUCE ANOTHER $60 MILLION. EMPLOYEES TOOK PAY REDUCTIONS IN TWO SEPARATE CONTRACTS. YOU HAD TO REDUCE SERVICE LEVELS AND FREEZE HIRING OF POLICE AND FIRE, AND DURING THAT TIME, PENSION COSTS CONTINUED TO CLIMB AS MORE REALISTIC COST ESTIMATES WERE BUILT INTO OUR SYSTEM. WE ALSO HAD TO BUILD IN MORE REALISTIC REVENUE FORECASTS. BUT THE COUNCIL CONTINUED TO FOCUS ON EXPENSES, MADE DIFFICULT DECISIONS ABOUT HIRING AND EMPLOYMENT, DIVERSIFIED OUR ECONOMIC BASE FROM A REAL ESTATE-ORIENTED ECONOMY TO ONE THAT IS ABOUT EDUCATION, MEDICINE, MANUFACTURING AND TOURISM, AND WE WORKED FROM BETTER REVENUE MODELS TO BE ABLE TO PREDICT THAT. THAT’S WHERE WE COME IN TODAY. WE CONTINUED TO PAY ALL OF OUR BILLS DURING THAT TIME. WE MET ALL OF OUR PENSION OBLIGATIONS. BY 2019-2020 WE ACHIEVED A STRUCTURAL BALANCE AND WERE ABLE TO RECOGNIZE OUR EMPLOYEES WHEN YOU ADOPTED THE FIRST TRUE PAY INCREASE IN 10 YEARS FOR OUR CITY EMPLOYEES IN THEIR CONTRACTS LAST YEAR. SO I JUST WANT TO THANK THE COUNCIL FOR THAT 10 YEARS OF REALLY, REALLY DIFFICULT WORK AND EFFORT. I WANT TO THANK OUR CITY EMPLOYEES FOR THE SACRIFICES THEY MADE. AND MOSTLY TO THANK THE PUBLIC FOR CONTINUING TO PARTICIPATE AND BELIEVE IN THE SERVICES WE GIVE TO THEM. BUT AGAIN THIS YEAR NOW WE ARE A STRUCTURALLY BALANCED BUDGET. THAT MEANS THAT THE REVENUE WE HAVE COMING IN MEETS OUR OBLIGATIONS NOW AND INTO THE FUTURE. BUT WE DO, AS I NOTE IN HERE, NEED TO CAREFULLY MONITOR THOSE EXPENDITURES AND BE BE CONSCIENTIOUS ABOUT HOW WE ADD TO OUR EXPENSES. WE CONTINUE TO MEET THE DEMANDS OF INCREASED PENSION PAYMENTS AND WE DO HAVE TO MENTION THIS EVERY TIME. PARTICULARLY ON OUR POLICE AND FIRE PENSION SYSTEM, THE INCREASE IN THAT DEMAND HAS BEEN SIGNIFICANT. WE HAVE HAD TO MAKE A LOT OF ADJUSTMENTS TO MEET THAT WITH YOU WE HAVE DONE THAT TO LIVE UP TO THOSE OBLIGATIONS TO OUR FIRST RESPONDERS AND TO OUR CITY EMPLOYEES. IN THIS BUDGET YOU WILL SEE WE WILL HAVE THE ABILITY TO INVEST RESOURCES IN SOME FUNDAMENTAL INFRASTRUCTURE. VEHICLES, TECHNOLOGY, AIR SAFETY FOR PUBLIC SAFETY. THESE THINGS ARE NOT EXCITING AT ALL BUT ARE FUNDAMENTAL TO WHAT IT IS WE ARE ABLE TO DO TO PROVIDE SERVICE. WE’LL ALSO HAVE, I THINK, HAVE RESOURCES TO INVEST IN RESTORING AND ADDING SOME SERVICES THE COMMUNITY HAS TOLD US, TOLD YOU, YOU HAVE TOLD ME THAT ARE IMPORTANT TO US AND TODAY IS THE FIRST STEP IN IDENTIFYING WHAT THE LEVEL OF RESOURCES ARE SO IN THAT A IN A COUPLE WAKES WE CAN TALK ABOUT WHAT THAT MIGHT BE. FINALLY WE LOOKED INTO THE DATA AND JEFF WILL SHOW YOU THAT, HOW HE HAS BEEN FOCUSED ON CAREFULLY ATTENTIVE TO THE IDEA THAT ECONOMIC EXPANSION WILL NOT CONTINUE FOREVER, AND WHEN THAT SLOWDOWN COMES, WHAT COULD THAT MEAN AND HOW DO WE NEED TO PREPARE FOR THAT EVENTUALITY. SO WITH THAT I’M GOING TO TURN THE PRESENTATION OVER TO OUR CURRENT BUDGET AND RESEARCH DIRECTOR, AND AS MAYOR NOTED, YOU ON FUTURE DEPUTY CITY MANAGER, JEFF BARTON.>>GOOD AFTERNOON. IT’S A PLEASURE TO BE HERE. AGAIN, THIS IS OUR FIVE-YEAR FORECAST. THIS IS REALLY A TOOL FOR YOU TO MAKE VERY SOUND DECISIONS. THIS IS THE NINTH CONSECUTIVE YEAR IN WHICH WE PRESENTED THIS FIVE-YEAR FORECAST TO YOU. TODAY’S AGENDA WE’LL TALK TO YOU ABOUT THE FORECAST ITSELF, THE PURPOSE OF IT, THE OVERVIEW. WE’LL ALSO DISCUSS OUR REVENUE ASSUMPTIONS AS WELL AS OUR EXPENDITURE ASSUMPTIONS. THEN WE’LL PUT THE WHOLE THING TOGETHER FOR YOU SO YOU CAN SEE WHAT IT LOOKS LIKE AND WE’LL GET INTO THAT STRESS TEST WE’RE PRESENTING FOR THE SECOND YEAR IN A ROW. SO AGAIN THE FIVE-YEAR FORECAST AS YOU KNOW IS A FINANCIAL BEST PRACTICE. IT’S RECOGNIZED IN THE INDUSTRY BY EVERYONE FROM THE GFOA TO THE ICMA. OUR PROCESS IS EXTREMELY SOUGHT AFTER. FOLKS CONSIDER US A BEST PRACTICE. WE HAVE RECEIVED THE GFOA DISTINGUISHED BUDGET AWARD FOR 25 CONSECUTIVE YEARS. THAT’S A FEATHER IN THE CAP TO YOU, TO THE WORK YOU DO WITH OUR CONSTITUENTS IN THE COMMUNITY AS WELL AS GOING TO THOSE BUDGET HEARINGS. I WANT TO THANK YOU FOR THAT. WE ALSO USE THIS TOOL TO PROVIDE THE FRAMEWORK FOR ADOPTING A BALANCED BUDGET. UNLIKE OUR FRIENDS IN D.C. THAT DON’T HAVE TO HAVE A BALANCED BUDGET AND CAN DEFICIT SPEND, WE DON’T HAVE THAT LUXURY. SO WE HAVE TO ADOPT A BALANCED BUDGET BY BOTH STATE STATUTE AND CITY CHARTER AND THIS FORECASTING TOOL GIVES US THE BASE WORK OR FRAMEWORK TO DO THAT. THIRD IS IT HELPS US DECIDE WHERE WE’RE GOING TO SPEND OUR MONEY AND MAKE SOUND DECISIONS. IF WE SEE A RECESSION COMING OR A SOFTENING IN THE ECONOMY THIS TOOL ALLOWS US TO NOT OVERCOMMIT. THAT’S A GOOD PIECE OF THIS TOOL. FINALLY, COUNCILMAN WARING, I WILL GIVE YOU KUDOS FOR THIS AS I ALWAYS DO, BECAUSE A FEW YEARS BACK WE WERE OUTSIDE THE NORM AS OUR PEERS AS PERTAINS TO OUR REVENUE FORECASTING. SO WE CONTINUE TO WORK WITH THE UNIVERSITY OF ARIZONA. WE DEVELOPED OUR OWN INTERNAL ECONOMETRIC MODEL WE USE, AND THAT THING HAS PRODUCED AMAZING RESULTS. FOR THE PAST FOUR YEARS IN A ROW OUR REVENUE PROJECTIONS HAVE BEEN LESS THAN 1% OFF ON OVER A BILLION DOLLARS OF REVENUE. I THINK THAT IS A TESTAMENT. THANK YOU FOR IN COLONELLING US TO GO THAT FAR. FINALLY THE FIVE-YEAR FORECAST ITSELF, THE FORMULA IS SIMPLE, THE RECIPE IS PIMPLE REVENUES LESS EXPENDITURES TELL US WHETHER WE HAVE A SURPLUS OR DEFICIT. OUR RESOURCES, THAT’S OUR TAXES, THAT’S LOCAL SALES TAX, OUR — AS WELL AS STATE SHARED REVENUES. IT ALSO INCLUDES OUR FEES AND CHARGES. IT INCLUDES INTEREST EARNINGS WE HAVE FROM FUNDS HELD IN ACCOUNTS. IT ALSO INCLUDES OUR TRANSFERS AND RECOVERIES. SO OUR TRANSFERS WOULD BE THE MONEY COMING INTO THE GENERAL FUND FROM OUR ENTERPRISE FUNDS FOR CONSUMING GENERAL FUND SERVICES. WE IT ALSO INCLUDES OUR FUND BALANCE. ON THE EXPENDITURE SIDE IT’S LARGELY BASED ON OUR PLYEE COSTS. THAT DOES INCLUDE THE PENSION COSTS THAT THE CITY MANAGER JUST MENTIONED TO YOU. IT ALSO INCLUDES OUR SERVICES, SERVICES THAT OUR RESIDENTS HAVE COME TO DEPEND ON THAT OUR EMPLOYEES TAKE SUCH GREAT PRIDE IN PROVIDING TO OUR RESIDENTS. IT ALSO INCLUDES OUR CAPITAL EQUIPMENT AND OUR REPAIR TO MAINTAIN THAT EQUIPMENT AS WELL AS OUR CONTINGENCY FUND, WHICH AGAIN THIS COUNCIL HAS MADE AN ACTIVE AND CONSCIOUS CHOICE TO GROW THAT CONTINGENCY AND KEEP IT AT 4%. WE WILL BE ADDING 4 MILLION A YEAR OVER THIS FORECAST WINDOW. FINALLY WHEN YOU ADD THAT UP YOU EITHER HAVE MORE REVENUE THAN YOU NEED, WHICH MEANS YOU HAVE A SURPLUS, WHICH IS WHERE WE FIND OURSELVES TODAY, OR FIND YOURSELVES IN THE OPPOSITE POSITION WHERE YOU HAVE A DEFICIT. WE’RE NOT GOING TO TALK ABOUT THAT BECAUSE THAT’S NOT WHERE WE ARE AT TODAY AND WE DO HAVE A STRUCTURALLY SOUND BUDGET. I WANT TO WALK YOU THROUGH OUR REVENUE ASSUMPTIONS. THIS FORECAST DOES NOT INCLUDE OR PREDICT ANY FUTURE FEE INCREASES OR DECREASES IN OUR REVENUE NOR DOES IT INCLUDE ANY NEW SOURCES OF REVENUE. IT ALSO DOES NOT — WE’RE ALSO USING THIS BASED ON OUR ECONOMETRIC MODEL. WE ARE IN LINE WITH OUR PEERS. AS WELL AS PARTICIPATING WITH THE U OF A IN OUR STATE FORECASTING PROJECT. NO RECESSION IS REFLECTED. WE DID THAT OUTSIDE THE MODEL. THAT WOULD BE AGAINST BEST PRACTICE. I DON’T KNOW WHEN THE RECESSION WOULD START, WHICH AREAS WOULD IT HIT AND HOW LONG WOULD IT LAST. SO IT REALLY WOULD NOT BE A GOOD, SOUND METHOD TO INCLUDE THAT IN THE BASELINE FORECAST. WE ALSO CONTINUE TO MAXIMIZE PRIMARY PROPERTY TAX, MEANING WE ARE ADHERING TO BOTH STATE STATUTE AND THE PPTOC LEVY LIMITS. WE WILL NOT BE RAISING THE PROPERTY TAX IN THIS FORECAST, HOWEVER, THE LEVY, THE AMOUNT WE COLLECT, WILL ACTUALLY INCREASE BECAUSE THE PROPERTY VALUES WILL INCREASE. SO YOU’LL SEE THAT ON THE NEXT SLIDE. WE ALSO ASSUME NO NEGATIVE IMPACT TO STATE SHARED REVENUES BASED ON ACTIONS BY THE STATE AS THEY’RE IN SESSION TO KIND OF TALK ABOUT A VARIETY OF BILLS. IF THAT HAPPENS THAT WOULD CHANGE OUR FORECAST. AGAIN I WANT TO WALK YOU THROUGH A COUPLE THINGS. OUR LOCAL SALES AND EXCISE TAXES, WE’RE ESTIMATING THOSE TO BE AT THIS POINT BASED ON FIVE MONTHS WORTH OF COLLECTIONS AT ABOUT 533 MILLION. THAT’S ABOUT A 4.2% GROWTH RATE. ALSO ESTIMATING STATE SHARED AT 496 MILLION, ABOUT A 7.8%. THIS IS BASED ON FIVE MONTHS’ WORTH OF ACTUALS. WE DO HAVE SIX MONTHS IN MY STAFF IS JUST NOW LOOKING AT. THOSE NUMBERS WOULD GIVE ME INDICATION TO BELIEVE THAT BEFORE THE MANAGER’S BUDGET IS PRESENTED IN MAY WE MAY WANT TO TWEAK OUR REVENUE UP. BUT AGAIN I’M GOING TO BE VERY CAUTIOUS ABOUT HOW FAR I TWEAK IT UP GIVEN THE CORONAVIRUS AND THE ELECTION AND ALL KINDS OF OTHER THINGS THAT COULD DRAG THAT NUMBER DOWN BECAUSE I DON’T WANT TO FIND OURSELVES COMMITTED TO A REVENUE NUMBER AND PROVIDING SERVICES AND IMMEDIATELY JULY 1 WE’RE MAKING CUTS. SO I DO NOT WANT TO DO. ALSO, PROPERTY TAX, WE’RE ESTIMATING ABOUT $180 MILLION. THAT’S ABOUT 5.3%. THE RATE STAYS THE SAME. THIS IS REALLY A FUNCTION OF PROPERTY VALUES INCREASING. WE ALSO ARE ESTIMATING ABOUT $141 MILLION IN USER FEES AND OTHER FEES THAT COME INTO THE CITY. LARGELY THESE ARE DRIVEN BY THINGS LIKE AMBU BILLING. ABOUT 36 MILLION A YEAR THERE. ALSO INCLUDED WOULD BE FINES AND FORFEITURES IN THE COURTS. AND OUR BEGINNING FUND BALANCE IS ESTIMATED ABOUT $103 MILLION AND THEN OUR TRANSFERS AT ABOUT 13 MILLION. SO IN TOTAL WE’RE ESTIMATING RESOURCES NEXT YEAR ABOUT $1.466 BILLION. THAT’S ABOUT A 2.9% INCREASE IN RESOURCES. ON EXPENDITURES, AGAIN, OUR OPERATING EXPENDITURE GROWTH RATES ARE BASED ON OUR HISTORICAL PATTERN, SPENDING PATTERNS, AS WELL AS CPI. WE ARE BASING OUR PENSION COSTS OFF OF THE MOST RECENT ACTUARIAL STUDY AND YOU DO RECALL WE ASKED THE STATE TO GIVE US THE LATITUDE TO PAY IT 30 YEARS, HOWEVER THIS COUNCIL SAID IT WANTED TO PAY IT 25. THAT’S WHAT WE’RE MODELING HERE. AND THE COMPENSATION COST AS THE CITY MANAGER ALLUDED TO ARE THE EXISTING LABOR CONTRACTS. THAT’S CONTRACT EXPIRES AT THE END OF NEXT FISCAL YEAR, HOWEVER, WE DO NOT ASSUME ANY PAY INCREASES BEYOND THAT. SO WE ARE PERPETUATING THE EXISTING LABOR CONTRACT THROUGHOUT THE DURATION OF THIS FORECAST. FINALLY MAINTAINING THE CONTINGENCY FUND AT 4%. THAT REQUIRES ABOUT $4 MILLION A YEAR. WHEN WE PUT IT ALL TOGETHER THIS IS WHAT WE LOOK LIKE. IN THE — THE PROJECTED YEAR, NEXT YEAR, 20-21, RESOURCES ARE 1.466, EXPENSES ARE 1.438. THAT LEAVES US THAT $28 MILLION SURPLUS. THAT NUMBER COULD CHANGE BY THE TIME WE GET TO THE MANAGER’S BUDGE NET MAY. I AM KEEP YOU ABREAST OF THAT IN EVERY PRESENTATION BETWEEN NOW AND THEN. WHEN WE LOOK AHEAD TO THE FOLLOWING YEAR, ’21-22 WE HAVE AN $18 MILLION SHORTFALL TO A POSITIVE 8 MILLION DOLLAR RANGE. BASELINE IS ABOUT A NEGLECTIVE TO $5 MILLION. AGAIN TO ME THAT’S CLOSE ENOUGH TO CALL IT A BALANCED BUDGET. PLUS I HAVE TWO YEARS TO CORRECT THAT ACTION. IF I INCREASE REVENUES BETWEEN NOW AND MAY THAT WILL CORRECT ITSELF ANYWAY. LET’S NOT GET TOO CONCENTRATED OR FOCUSED ON THAT NEGATIVE NUMBER THERE. THE OTHER THREE YEARS I’M NOT GOING TO GO THROUGH EACH OF THEM. YOU WILL SEE THE BASELINE OR MID-POINT OF EACH OF THE YEARS IS A BALANCED BUDGET, AGAIN REFERENCING THE CITY MANAGER’S MENTION OF A STRUCTURALLY BALANCED BUDGET. BARRING ANY CRAZY ECONOMIC ACTIVITY. WHEN WE GO INTO STRESS TESTING AGAIN WE SHOWED THIS FOR THE FIRST TIME LAST YEAR. THIS IS A QUOTE FROM MOODY’S ANALYTICS THAT SAYS PREPARING FOR RECESSIONS IS AN INESCAPABLE CONFLICT. AGAIN, JUST JUST BE MINDFUL. THAT’S WHAT WE’RE DOING HERE. THE GREAT RECESSION AS THE CITY MANAGER MENTIONED WAS ABOUT A HE CAN DID AID AGO. RECESSIONS, AGAIN, WE DON’T CONTROL THEM. THEY’RE A NORMAL PART OF THE BUSINESS CYCLE. THEY USUALLY HAPPEN EVERY SEVEN TO 10 YEARS. WE ARE LONG OVERDUE. OUR STRESS TEST IS A MODEL TO LOOK AT THE PROBABILITY OR ASSUMPTIONS OF CHANGING REVENUE STREAMS. WE MODELED TWO SCENARIOS, A MODERATE RECESSION AND A SEVERE RECESSION. UNDER THE MODERATE WE’RE LOOKING AT ABOUT 1% CHANGE IN REVENUE OVER A TWO-YEAR PERIOD STARTING IN ’21 AND ’22 AND SEVERE IS 3% FOR THREE FISCAL YEARS STARTING IN ’21-22. ALL OTHER ASSUMPTIONS FOR EXPENDITURES REMAIN THE SAME. WHEN WE LOOK AT WHAT THAT LOOKS LIKE, THIS IS OUR BASELINE FORECAST. HOWEVER WHEN I DROP IN THE MODERATE RECESSION YOU WILL SEE THAT IN THE FIRST YEAR, ’21-22 WE LOSE ABOUT $60 MILLION TO THE BOTTOM LINE. SO WE WOULD BE LOOKING AT A DEFICIT UNDER THE SCENARIO. AGAIN, WHY AM I SHOWING THIS? AGAIN, USE THAT $28 MILLION WISELY, RIGHT? WE WANT TO MAKE SURE WE PUT IT IN AREAS AND WE PROBABLY DON’T WANT TO SPEND ALL OF IT AT — EVERY DIME WE HAVE JUST TO BE KIND OF MINDFUL OF THAT. WHEN WE LOOK AT THE SEVERE RECESSION, AGAIN THAT JUST MAGNIFIES, IT GETS WORSE AND YOU CAN SEE IT LASTS LONGER BECAUSE IT’S A THREE-YEAR WINDOW ON THAT ONE. SO AGAIN, THIS IS JUST TO ILLUSTRATE FOR YOU THE IMPORTANCE OF MAKING SOUND DECISIONS AND TO PROVIDE YOU WITH ADDITIONAL INFORMATION AS WE MOVE FORWARD IN OUR BUDGET PROCESS. BUT NOT TO END ON A SOUR NOTE, WE DO HAVE A $28 MILLION SURPLUS. THAT SHOULD BE CELEBRATED. WE DO NOT HAVE A DEFICIT. AND AGAIN I DO WANT TO MENTION THAT 19 1/2 MILLION DOLLARS OF THAT SURPLUS IS WHAT WE CARRIED OVER FROM THE END OF FISCAL YEAR ’18-19 IF YOU RECALL THAT. AGAIN ABOUT $10 MILLION ON TOP OF THAT NUMBER. AND WE ARE AWAITING HOLIDAY SALES TAX BUT AGAIN BASED ON WHAT I SAW IN THE SIX-MONTH REPORT, ABOUT 14% GROWTH IN THE STATE AND ABOUT 8% FOR CITY. I’M NOT GOING TO BUDGET THAT BUT I JUST WANTED TO KEEP THAT IN EVERYONE’S — IN THEIR FRONT VIEW. THAT IS THE END OF MY PRESENTATION AND I’D BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.>>Mayor Gallego: THANK YOU, JEFF. ANY COUNCILMEMBER COMMENTS OR QUESTIONS? WONDERFUL. WE APPRECIATE YOUR PRESENTATION AND LOOK FORWARD TO CONTINUED CONVERSATION ABOUT OUR CITY OF PHOENIX BUDGET. WE NEXT MOVE TO OUR INTERNATIONAL STRATEGY AND WE’LL WELCOME OUR ECONOMIC DEVELOPMENT DIRECTOR CHRISTINE MACKAY HERE. BEFORE SHE BEGINS OUR PRESENTATION I WANT TO THANK THE VERY DISTINGUISHED GROUP WHO HAS JOINED US HERE TODAY AS WE DISCUSS OUR INTERNATIONAL STRATEGY. WE ARE SO LUCKY TO HAVE WONDERFUL PARTNERS, MANY OF WHOM WHO HAVE DEDICATED THEIR LIVES TO THIS WORK. THE CONSULAR CORPS IS HERE WITH US TODAY WITH EXCELLENT REPRESENTATIVES AND I WOULD LIKE TO ASK OUR CONSULS, BOTH HONORARY, PAST, PRESENT AND FUTURE, TO STAND SO THAT WE CAN APPLAUD YOU AND THANK YOU FOR YOUR PARTNERSHIP. [APPLAUSE]>>Mayor Gallego: THANK YOU FOR MAKING SURE WE ARE A GLOBALLY CONNECTED CITY. WE ARE ALSO JOINED BY REALLY A WHO’S WHO OF INTERNATIONAL DEVELOPMENT HERE TODAY. WE HAVE THE GREATER PHOENIX ECONOMIC COUNCIL, THE ARIZONA COMMERCE AUTHORITY, THE PHOENIX COMMITTEE ON FOREIGN RELATIONS, MARICOPA ASSOCIATION OF GOVERNMENTS, ARIZONA-MEXICO COMMISSION, THE GLOBAL CHAMBER, THE PHOENIX CHAMBER, COUNTING DOUBLE, THE CANADA-ARIZONA BUSINESS COUNCIL, ARIZONA STATE UNIVERSITY, THE — SEVERAL REPRESENTATIVES OF THE MEXICAN CONSUL GENERAL’S OFFICE, THE PACIFIC RIM ADVISORY COUNCIL, MANY OF OUR DISTINGUISHED LEADERS OF OUR SISTER CITIES COMMISSION, OUR CITY INTERNATIONAL DEVELOPMENT STAFF AND MANY OTHERS. I APOLOGIZE IF I FORGOT ANYONE BUT AT LEAST THAT GIVES YOU A SENSE OF THE REAL PRESTIGE AND GREAT PARTNERSHIPS THAT WE HAVE. SO WE KNOW WE ARE NOT GOING ALONE AND WE ARE LUCKY TO HAVE ALL OF YOU AS PARTNERS. WE AS A CITY COUNCIL WANT TO BE A MORE GLOBALLY CONNECTED CITY AND WANT TO HAVE A METRICS DRIVEN STRATEGY TO ACHIEVE THAT. I WILL TURN IT OVER TO OUR CITY LEADERSHIP TO INTRODUCE THIS IMPORTANT ITEM.>>THANK YOU, MAYOR, MEMBERS OF THE COUNCIL. AS YOU SAID, JOINING ME AT THE TABLE TODAY IS CHRIS MACKAY, COMMUNITY AND ECONOMIC DEVELOP DEVELOPMENT DIRECTOR WHO WILL PRESENT FOR YOUR CONSIDERATION RECOMMENDATION OF OUR INTERNATIONAL STRATEGY.>>GOOD AFTERNOON. YOU WILL RECALL AT YOUR DECEMBER 10th MEETING YOU GAVE STAFF DIRECTION TO GO BACK AND CREATE AN INTERNATIONAL STRATEGIC PLAN LOOKING AT GLOBAL INITIATIVES AND WORKING WITH MULTIPLE PARTNERS. WE’RE BACK HERE TODAY WITH STAFF’S RECOMMENDATION ON THAT GLOBAL PLAN. IF WE LOOK AT THE LONG-TERM GLOBAL STRATEGY, THE CITY REALLY CONTINUES TO GROW ITS GLOBAL INITIATIVES, PARTICULARLY WITH MEXICO, WITH CANADA, WITH THE U.K., AND WITH ASIA. AND WE’RE LOOKING AT WORKING DILIGENTLY AND CONNECTING IN THOSE MARKETS. AS WE LOOK AT OPPORTUNITIES FOR OUR OWN BUSINESSES HERE IN PHOENIX, WE ARE ATTEMPTING TO WIDEN THE GLOBAL MARKET FOR THEM. SO THERE ARE MORE CONSUMERS FOR THEIR PRODUCTS AND MORE BUSINESS ACTIVITY FOR OUR EXISTING BUSINESSES. I THINK ALL OF US WERE REALLY EXCITED AND SURPRISED TO LEARN THE DEPTH OF COUNTRIES THAT WE DO BUSINESS WITH HERE IN METRO PHOENIX. CURRENTLY THERE ARE COMPANIES THAT REPRESENT 50 COUNTRIES, ALMOST 2600 COMPANIES HERE IN THIS MARKET REPRESENTING JUST OVER 85,000 JOBS. BUT I THINK WHAT’S MORE IMPORTANT TO NOTE ABOUT THOSE 85,000 JOBS IS THOSE ARE DIRECT JOBS WITH FOREIGN-OWNED ENTERPRISES. IF YOU LOOK JUST AT MEXICO AND CANADA, THERE ARE 228,000 ADDITIONAL JOBS THAT ARE SUPPORTED IN ARIZONA WITH COMPANIES THAT ARE DOING BUSINESS IN THOSE MARKETS. IF WE LOOK AT N.A.F.T.A., WHICH WAS IN PLACE FOR 25 YEARS, WE SAW A 300% INCREASE IN TRADE JUST WITH MEXICO DURING THAT 25-YEAR PERIOD OF TIME. AS YOU KNOW, N.A.F.T.A. HAS SUNSETTED AND THE USMCA HAS TAKEN ITS PLACE AND WE THINK IT HAS THE ABILITY TO GROW US EVEN MORE SIGNIFICANTLY IN THE COMING DECADE. JUST A COUPLE OF INTERNATIONAL FUN FACTS I THOUGHT YOU MIGHT ENJOY. 92% OF ARIZONA’S TOP 25 EXPORT MARKETS SAW AN INCREASE IN 2018 OVER 2017. SO WE’RE SEEING THOSE MARKETS TRULY GROW. ARIZONA EXPORTS TO MEXICO AND CANADA DROPPED A LITTLE BIT IN 2018 OVER 2017, 44% DOWN FROM 49%, BUT, OF COURSE THAT WAS PART OF THE ADOPTION OF THE USMCA AND SOME ADDITIONAL MARKETS WE EXPANDED INTO. ONLY 1% OF U.S. COMPANIES EXPORT, BUT HERE’S A FACT THAT REALLY SURPRISED ALL OF US. 97% OF THOSE COMPANIES ARE SMALL TO MEDIUM ENTERPRISES. WE ALWAYS THINK OF THOSE AS BIG COMPANIES, THEY’RE DOING BIG BUSINESS, BUT 97% OF THOSE COMPANIES ACCOUNT FOR 25% OF THE EXPORTS IN OUR MARKET. AND 58% OF THOSE COMPANIES EXPORT TO A SINGLE MARKET. IF WE LOOK AT GLOBAL E-COMMERCE, BUDGET DIRECTOR JEFF BARTON DOES NOT LIKE WHEN IT I CALL THIS TO HIS ATTENTION, BUT GLOBAL E-COMMERCE CONTINUES TO GROW AND IT’S PROJECTED TO BE NEARLY $4 BILLION IN 2020. THAT DOES GIVE OUR COMPANIES AN ABILITY TO EXPORT THEIR PRODUCTS THROUGH THAT MEANS AS WELL. AS WE TALKED ABOUT, USMCA WAS AUTHORIZED IN 2020, AND THE XM BANK WAS REAUTHORIZED FOR SEVEN YEARS. THAT’S THE FIRST TIME IN 85 YEARS THE XM BANK HAS BEEN AUTHORIZED FOR THAT EXTENDED PERIOD OF A TIME. FOR OUR LISTENERS WATCHING THE CITY COUNCIL MEETING, THE XM BANK IS A BANK THAT LOANS TO COMPANIES WHO ARE EXPORTING THEIR GOODS OVERSEAS. SO I HAVE A BILL OF LAIDING. I’M GOING TO MAKE THIS UP. I AM GOING TO SEND 100 PRODUCTS TO ASIA. IT GOES ON A BOAT. IT’S ON THE OPEN SEAS FOR SIX WEEKS WHILE IT MAKES IT THROUGH THE PORTS, WHILE IT MAKES INTO THE MARKETS. IT GETS INTO THAT MARKET. THE COMPANIES ONCE THEY DISTRIBUTE IT THEY PAY THEIR BILL. NOW THE MONEY COMES BACK TO ME. MOST SMALL BUSINESSES CAN’T AFFORD TO HAVE THAT TYPE OF REVENUE, THAT TYPE OF MONEY AND CAPITAL OPEN FOR SOME A LONG PERIOD OF TIME. SO THE XM BANK LOANS AGAINST THOSE INVOICES. SO SMALL COMPANIES, MEDIUM AND LARGE COMPANIES CAN MAKE THOSE EXPORTS, THEY CAN DO BUSINESS IN THOSE MARKETS. EXIM LOANS AGAINST THOSE INVOICES SO THE COMPANIES CAN KEEP GROWING AND KEEP PRODUCING. WHEN THEY GET THE INVOICE, THEY PAY THE BANK BACK. OUR U.S. MARKET, AS WE TALK ABOUT USMCA, THERE ARE 20 OTHER FREE TRADE AGREEMENTS AND A NUMBER OF THEM WITH MARKETS WE’RE SEEING A LOT OF GROWTH IN TODAY. IF WE LOOK AT INTERNATIONAL BUSINESS DEVELOPMENT, OUR TOP FIVE EXPORT COMMODITIES I THINK WE’RE ALL EXCITED TO SEE ARE IN TECHNOLOGY RELATED SECTORS. AIRCRAFT AND AIRCRAFT RELATED PARTS ARE OVER $3 BILLION. ELECTRONIC PRODUCTS ARE OVER $3 BILLION. MINING IS A LARGE ENTITY. ELECTRICAL EQUIPMENT IS $1.9 BILLION. MACHINERY IS NEARLY A BILLION DOLLARS. OUR TOP FIVE EXPORT MARKETS ARE NO SURPRISE TO US, MEXICO, CANADA, CHINA, THE UNITED KINGDOM AND JAPAN. WE CONTINUE TO SEE OUR EXPORT ACTIVITY RISE. THE MOST RECENT NUMBERS WE HAVE IS FOR 2017 WHERE WE SEE A 20% INCREASE WITH IT GROWING FROM 12.7 BILLION IN 2013 TO 14.4 BILLION IN 2017. WE CONTINUE TO SEE GROWING INTERNATIONAL TWO-WAY TRADE. WE’RE NOT JUST TALKING ABOUT EXPORTS. WE’RE TALKING ABOUT IMPORTS AND EXPORTS INTO OUR MARKET. MEXICO IS UP 7.7%. CHINA IS UP 11%. CANADA IS UP 2.4%. NO SURPRISE TO ANY OF US, MEXICO IS OUR LARGEST EXPORT TRADING PARTNER WHERE MOST OF THE STATES THAT EXIST IN THE SOUTHWEST. IF WE LOOK AT OUR LEGACY INVESTMENT SECTORS DO THAT — THAT MAKE INVESTMENTS INTO THE U.S., WE SEE THOSE IN ADVANCED MANUFACTURING, PROFESSIONAL SERVICES LIKE SCIENCES AND COMMUNICATION AND OTHER MARKETS. THOSE TEND TO COME FROM THE NETHERLANDS, FRANCE, SWITZERLAND, CANADA, MEXICO, GERMANY AND OTHER MARKETS. IF WE LOOK AT NEW INDUSTRY SECTORS, SO, AS THE OLD ADAGE GOES, 68 TO WHERE THE PUCK IS GOING TO GO, IN THOSE NEW INDUSTRY SECTORS, LOOKING ANT TRANSFORMATIONS FROM — WE SEE CYBERSECURITY, BLOCK CHAIN, HUMAN AUGMENTATION, SUSTAINABILITY, NEW PHARMA AND SPACE. THOSE COMPANYING FROM OTHER CUBS, ISRAEL, SWITZERLAND, FRANCE, OTHER MARKETS. IF WE LOOK AT FOREIGN DIRECT INVESTMENTS INTO MARKETS THAT ARE VERY SIMILAR TO OURS, AND YOU’LL SEE WE’VE KIND OF CATALOGED THOSE THAT ARE KIND OF TEXAS TO THE WEST FOR US, IF WE LOOK AT A U.S. AVERAGE, 5.5% OF ALL COMPANIES IN ANY U.S. MARKET ARE FOREIGN-OWNED ESTABLISHMENTS. THEY’RE FOREIGN OWNED BUSINESSES. YOU CAN SEE OTHER MARKETS. SAN JOSE, PARTICULARLY STRONG BECAUSE OF ELECTRONICS AND TECHNOLOGY. YOU SEE HOUSTON IS A STRONG MARKET. IT’S GAS AND OIL. YOU SEE PHOENIX AT 4%, WHICH ISN’T BAD. WE’RE DOING VERY WELL. BUT WE DO HAVE SOME ROOM FOR GROWTH TO COMPETE WITH OUR OTHER WEST COAST MARKETS. IF WE LOOK AT OUR INTERNATIONAL OPPORTUNITIES, OUR STRENGTHS ARE IN CANADA, IN MEXICO, IN CHINA, IN TAIWAN, IN THE U.K. AND IN SOUTH KOREA, AND WE SEE ABOUT 40% OF OUR FOREIGN-OWNED COMPANIES ARE OPERATING OUT OF MAJOR COMPANIES THAT COME OUT OF THOSE COUNTRIES. THE THINGS THAT HAVE COME OUT OF OUR ACTIVITIES FOCUSING ON DRIVING A STRONG INTERNATIONAL ECONOMY ARE INTERNATIONAL FLIGHTS. WE HAVE SEEN LONDON IN 2019, AMERICAN DID A NONSTOP FLIGHT INTO LONDON. I HAD THE PRIVILEGE OF BEING ON THAT FLIGHT WITH COUNCILWOMAN WILLIAMS. WE MET WITH — I THINK WE MET WITH FOUR COMPANIES BEFORE WE EVEN LEFT THE HEATHROW AIRPORT ON THAT DELEGATION. I AM PRETTY CERTAIN. WE HAD A NUMBER OF BUSINESS DELEGATIONS AND A NUMBER OF MEETINGS AND A NUMBER OF PEOPLE IN THIS ROOM WERE WITH US ON THAT BUSINESS FLIGHT. HERMOSILLO ADDED ANOTHER DIRECT FLIGHT IN 2019 AND IT WAS A BIT FUNNY, PEOPLE KEPT SAYING WE WERE NEVER GOING TO GET ANOTHER DIRECT FLIGHT TO HERMOSILLO, WE DIDN’T NEED ONE AND IT JUST POPPED OUT OF THE BLUE WE REALLY DID NEED ONE. CONDOR HAS A DIRECT FLIGHT NOW TO FRANKFURT. THEY HAVE GONE FROM TWO FLIGHTS A WEEK AT FOUR MONTHS OUT OF THE YEAR. THEY HAVE ALREADY UPGRADE TO DO THREE FLIGHTS A WEEK FOR SIX MONTHS OUT OF THE YEAR. THEY’RE SEEING SUCH STRONG ACTIVITY. THEN WE HAVE THE INAUGURAL FLIGHT TO FRANKFURT OF LUFTHANSA ON APRIL 29th AND I WILL HAVE THE PRIVILEGE OF GOING WITH A NUMBER OF YOU ON THAT TRADE DELEGATION TO MEET WITH SOME NEW COMPANIES IN GERMANY. WE’VE ALSO SEEN THE THUNDERBIRD SCHOOL OF GLOBAL MANAGEMENT EXPAND INTO DOWNTOWN PHOENIX. $60 MILLION INVESTMENT IN A PROJECT THAT’S UNDER CONSTRUCTION. THIS IS AN INTERNATIONALLY RECOGNIZED SCHOOL. I’M PROUD TO SAY THAT THIS CITY COUNCIL PARTNERED AND MADE A $12 MILLION INVESTMENT. THEY BELIEVED SO MUCH IN BRINGING THIS INTERNATIONALLY RECOGNIZED SCHOOL INTO DOWNTOWN PHOENIX THEY AUTHORIZED AN INTERGOVERNMENTAL AGREEMENT WITH ARIZONA STATE UNIVERSITY TO DRIVE THAT ECONOMY INTO DOWNTOWN PHOENIX. WE FOCUS ON BOTH THE CIRCULAR ECONOMY AND SUSTAINABILITY IN OUR C-40 CITIES, IN OUR MacARTHUR FOUNDATION, BUT SMART CITIES IS MAKING HUGE INROADS IN WAYS THAT INTERNATIONAL COMMUNITIES ARE PARTNERING TOGETHER. SO WHERE DO WE GO FROM HERE? AS THIS COUNCIL HAS WORKED DILIGENTLY AND HAS SHOWN BY MR. BARTON’S BUDGET, YOU HAVE WORKED DILIGENTLY TO CREATE A SUSTAINABLE AND RESILIENT AND ROBUST ECONOMY, AND TO KEEP THAT MOVING FORWARD WE NEED TO CONTINUE TO EXPLORE EXPANDING INTO INTERNATIONAL MARKETS AND DRIVING FOREIGN INVESTMENT, NOT ONLY WITH IMPORTS AND EXPORTS, BUT WITH COMPANIES, SELECTING TO GROW HERE IN PHOENIX. SO STAFF WOULD PROPOSE THE FOLLOWING METRICS TO BE ACCOMPLISHED BY 2030, WHICH IS A 10-YEAR HORIZON. FIRST, AS WE TALKED ABOUT, WE ARE HEAVILY EMBEDDED IN LEGACY SECTORS, IN ADVANCED INDUSTRIES, IN PROFESSIONAL SERVICES, IN COMMUNICATIONS. WE WOULD LIKE TO WORK TOWARDS MAKING THAT STILL THE LION’S SHARE OF OUR INTERNATIONAL COMPANIES AT 70%, BUT FOCUSING DILIGENTLY ON THAT DIGITAL ECONOMY, SHIFTING FROM THE CONSUMPTION-BASED PHYSICAL ECONOMY TO THE DIGITAL ECONOMY AND DRIVING BY 2030 TO HAVING 30% OF OUR NEW INDUSTRY SECTORS IN THAT DIGITAL ECONOMY. IT’S ALWAYS GREAT WHEN WE HAVE MERGERS AND ACQUISITIONS AND FOREIGN COMPANIES PURCHASE OUR COMPANIES OR OUR COMPANIES PURCHASE FOREIGN COMPANIES BUT WE NEED A MUCH MORE STABLE PLATFORM TO ATTRACT FOREIGN INVESTMENT. WE NEED TO WORK DILIGENTLY WITH OUR EXISTING, THOSE COMPANIES WE SHOWED AT THE BEGINNING THAT ARE CREATING THE 85,000 JOBS AND HELP WORK WITH THEM TO ENSURE THEY GROW HERE IN THIS MARKET, BUT TO ALSO HELP LEVERAGE THEIR SUPPLY NETWORK TO SELECT PHOENIX TO LOOK AT U.S. PRESENCE AND THEN WORKING DILIGENTLY TO LOOK GLOBALLY AT NET NEW — NET NEW COMPANIES COMING INTO THIS MARKET. WE ALSO THINK THAT WE SHOULD WORK TO LEVERAGE OUR STRATEGIC PARTNERS. WE HAVE INCREDIBLE PARTNERS IN INTERNATIONAL ACTIVITIES HERE IN ARIZONA. AND WORKING DILIGENTLY WITH THEM WILL DRIVE US TO EXACTLY WHERE WE NEED TO BE. OF COURSE, MAYOR, YOU MENTIONED THEM AT THE BEGINNING, THE GREATER PHOENIX ECONOMIC COUNCIL, A TREMENDOUS PARTNER OF OURS, THE ARIZONA COMMERCE AUTHORITY, THE — OUR OWN CONSULAR CORPS, THE U.S. TRADE OFFICES. ALL OF OUR INDIVIDUAL CONSULAR CORPORATIONS THAT ARE HERE TODAY. OUR OWN PHOENIX SISTER CITIES IN DIFFERENT DIFFERENT MARKETS WHO HAVE THEIR FINGER ON THE PULSE OF EXACTLY WHAT IS HAPPENING IN OUR 10 SISTER CITIES. CONTINUING TO ATTEND SELECT U.S.A. HERE IN WASHINGTON D.C. TO MAKE EASY CONNECTIONS TO THOSE COMPANIES. AND IT GOES WITHOUT SAYING THE ROCK STAR, UNIVERSITIES AND COMMUNITY COLLEGES THAT WE HAVE HERE IN THE STATE OF ARIZONA WHO ALREADY HAVE A VERY DEEP MARKET IN A NUMBER OF THE INTERNATIONAL MARKETS THAT WE’RE LOOKING TO MOVE INTO, WHETHER IT’S IN RESEARCH AND DEVELOPMENT, WHETHER IT’S IN EDUCATIONAL OPPORTUNITIES, OR WHETHER IT’S IN KEY PARTNERSHIPS THEY’VE MADE WITH SCIENCE IN MOVING TOGETHER AND LEVERAGING THOSE UNIVERSITIES TO GIVE US — PARDON THE EXPRESSION, BUT STREET CREDD AS WE MOVE INTO THOSE MARKETS BUT ALSO INTRODUCTIONS INTO THOSE MARKETS ON THE SCALE WE ARE LOOKING FOR. AS WE LOOK AT DRIVING OUR METRICS WE BELIEVE AT 4% OF OUR COMPANIES BEING FOREIGN-OWNED ESTABLISHMENTS WITH A 10-YEAR HORIZON AND A 10-YEAR PLAN WE BELIEVE WE CAN ACTUALLY EXCEED THE U.S. AVERAGE OF 5.5%. YOU KNOW US, GO BIG OR GO HOME. WE WOULD LIKE TO DRIVE EXPORTS IN OUR CANADA AND MEXICO UP TO 60% FROM THAT 49% THAT YOU SAW. WE HAVE 1% OF OUR COMPANIES PARTICIPATING. OUR SMALL TO MEDIUM ENTERPRISES PARTICIPATING IN EXPORTS TODAY. WE WOULD LIKE TO WORK THROUGH PROGRAMS WE WILL INTRODUCE YOU TO IN A MOMENT TO 5%. GIVE THESE SMALL COMPANIES A TRUE CHANCE TO EXPORT THEIR PRODUCTS WHETHER THERE E-COMMERCE OR OTHER MEANS. IT WAS INTERESTING TO US AS — HANK MARSHALL WHO IS MY PARTNER IN CRIME AND ECONOMIC DEVELOPMENT, THE NUMBER OF COMPANIES THAT ARE FINED FOR NONCOMPLIANCE OF EXPORT LAWS OR ACTUALLY SEE JAIL TIME FOR NONCOMPLIANCE OF EXPORT LAWS, AND IT DOESN’T BY READING THE INFORMATION APPEAR MOST OF THEM WERE WITH MALICE AFOR THOUGHT. IT WAS IGNORANCE OF NOT KNOWING WHAT THEY WERE SUPPOSED TO DO. SO WE WOULD LIKE TO CREATE AN EXPORT COMPLIANCE COMPETENCE PROGRAM FOR COMPANIES TO GO THROUGH SO THEY UNDERSTAND HOW TO DO BILLS OF LAIDING, THEY UNDERSTAND HOW TO EXPORT THEIR PRODUCTS, THEY UNDERSTAND HOW TO DO BUSINESS WITH FOREIGN COMPANIES. AND ALSO FOR OUR WORKFORCE, NOW WE’RE LEADING INTO A CAREER PATH, AND THAT CAREER PATH IS IN EXPORT COMPLIANCE, IS IN HELPING THESE COMPANIES GET TO EXPORT CERTIFICATIONS. TO ENABLE THAT ACTIVITY WE WOULD ASK FOR TWO DEDICATED ECONOMIC DEVELOPMENT TEAM MEMBERS. THE FIRST WOULD BE ON BUSINESS RETENTION AND EXPANSION. AND THAT’S REALLY TO CONNECT WITH OUR EXISTING COMPANIES TO HELP THEM GROW IN THIS MARKET, TO LEVERAGE THOSE EXISTING COMPANIES TO BRING NEW COMPANIES, TO BRING THEIR SUPPLY CHAIN NETWORK, TO BRING THEIR VENDORS, TO BRING OTHERS INTO THIS MARKET, AND TO REALLY SHARE THE MESSAGE THAT WE WANT OUT ABOUT PHOENIX IN THEIR GLOBAL MARKETS. THE OTHER IS ON BUSINESS ATTRACTION, TO IDENTIFY NEW COMPANIES, TO BRING IN THIS MARKET, WORKING WITH THOSE PARTNERS, WORKING WITH GPEC AND THE PHOENIX SISTER CITIES AND OTHERS TO COME INTO THIS MARKET. WE WOULD SUGGEST THAT WE CREATE WITH OUR UNIVERSITY PARTNERS OUR COWORKING SPACES SOFT LANDING SPACE. WHAT I MEAN BY IS THAT FOREIGN OWNED COMPANIES HAVE TROUBLE ENTERING INTO MARKETS. THEY CAN’T SIGN LEASES. THEY HAVE TROUBLE GETTING BANK ACCOUNTS. THEY HAVE TROUBLE KNOWING WHERE TO DO BUSINESS, HIRING A WORKFORCE, GETTING AN EIN NUMBER. IF WE CAN CREATE A SOFT LANDING SPACE WHERE WE HAVE COMPLIANCE INDIVIDUALS THERE, WE HAVE COMPANIES, UNIVERSITIES, LAW FIRMS THAT ARE THERE MOVING FORWARD WE CAN HELP THEM. DEPLOYMENT OF INNOVATION HUBS IN PARTNERSHIP WITH OUR UNIVERSITIES AS THEY’RE ALREADY MOVING FORWARD. DEVELOPMENT OF AN EXPORT INCUBATOR AND ACCELERATOR PROGRAM AND A CONTINUATION OF INBOUND/OUTBOUND PROGRAMS WITH OUR BUSINESS COMMUNITY. CREATION OF A SIGNATURE SFDI EVENT, FOREIGN DIRECT INVESTMENT IN PHOENIX, TO BRING THOSE THOUGHT LEADERS INTO INTO PHOENIX. WORKING WITH OUR SISTER CITIES, THEY ARE WORKING TO CREATE A TRI-LATERAL TRADE SHOP, BUT ANOTHER INTERESTING PIECE THE HAVE, THEY’RE SETTING UP SKYPE CALLS WITH OTHER COUNTERPARTS IN FOREIGN MARKETS TO CREATE ACTIVITY. A CONTINUING FOCUS ON OUR GLOBAL SMART CITIES INITIATIVE AND THEN TO ENHANCE AWARENESS OF OUR MARKET BY ATTRACTING KEY LEADERS INTO HERE. AND PROBABLY ONE THAT’S NEAR AND DEAR TO ALL OF OUR HEARTS BECAUSE OF THE ACTIVITIES WE’VE SEEN IN HEALTHCARE AND BIOSCIENCES IS EXPANDING AND WORKING WITH OUR KEY LEADERS IN MEDICINE, WITH OUR HOSPITALS AND WITH OTHERS IN DESTINATION MEDICINE. AS WE TALKED ABOUT PARTNERSHIPS WITH OUR STATE UNIVERSITIES ON DELEGATION AND TARGET MARKETS, DATA TO TARGET INTERNATIONAL COMPANIES AND CREATION OF NEW MARKETING MATERIALS. WE WOULD MAINTAIN OUR OFFICES IN BOTH MEXICO CITY AND HERMOSILLO AND THEN CONTINUE TARGETED BUSINESS-TO-BUSINESS TRADE DELEGATIONS TO MEXICO AND CANADA SEMIANNUALLY. SO, WHAT WE WOULD RECOMMEND IS THAT YOU AUTHORIZE US TO IMPLEMENT A LONG-TERM INTERNATIONAL STRATEGY, INCLUDING OUR TWO POSITIONS, AND STAFFING AND FINANCIAL RESOURCES TO SUPPORT THAT AND ALSO ALLOW US THE OPPORTUNITY TO LEVERAGE CONTRACTS WITH THE PARTNERS THAT WE DISCUSSED IN OUR PRESENTATIONS. WITH THAT I’M HAPPY TO TAKE ANY QUESTIONS YOU MIGHT HAVE.>>Mayor Gallego: THANK YOU. THANK YOU FOR THAT EXCELLENT PRESENTATION. YOU HAVE SET OUT SOME AMBITIOUS METRICS BUT I THINK THAT WILL FOCUS US IN A GOOD DIRECTION. THIS TO ME IS A STRATEGY THAT ENCOMPASSES OUR BUSINESS COMMUNITY FROM SMALL TO LARGE AND REALLY GIVES US THE RESOURCES TO LEVERAGE THE AMAZING WORK THAT IS THAT IS ALREADY HAPPENING IN THIS COMMUNITY SO WE CAN SUPPORT ALL THE GREAT THE PARTNERS WHO ARE ALREADY INVESTING IN A MORE GLOBAL PHOENIX. WE HAVE GREAT MOMENTUM. IT IS A GREAT TIME FOR OUR CITY, AND THANK YOU FOR HELPING US TAKE IT TO THE NEXT LEVEL. I WILL TURN TO COUNCIL MEMBERS FOR COMMENTS AND A MOTION.>>Councilman DiCiccio: MAYOR, JUST A COUPLE THINGS. ONE, CHRIS, THAT WAS AN AMAZING PRESENTATION. VERY WELL DONE. AND A VERY GOOD PERSPECTIVE WHAT’S HAPPENING IN THE GLOBAL MARKET. ONE OF THE THINGS WE OUGHT TO THINK ABOUT AS WE’RE DOING TARGETING, I KNOW YOU MENTIONED CHINA IS ONE OF OUR TARGETS THAT WE OUGHT TO BE LOOKING AT AND I DON’T DISAGREE A HUNDRED PERCENT WITH YOU, BUT IF YOU LOOK AT WHAT’S HAPPENING THERE WITH THE TRUMP TRADE AGREEMENT NEGOTIATED LAST YEAR AND THEN YOU LOOK AT ALL THE ISSUES THAT ARE HAPPENING IN THAT COUNTRY, ESPECIALLY THE FACT THAT IT IS A CENTRALIZED, COMMUNIST LEVEL TYPE OF GOVERNMENT, THAT EVEN THE BUSINESSES ARE NOW STARTING TO CREATE AN EXODUS ON OVER THERE. A LOT OF MANUFACTURERS LEAVING. WHERE ARE THEY GOING? A LOT ARE GOING CLOSER TO THERE IRMARKETS A CLOSER TO THEIR MARKETS WOULD BE A PLACE LIKE MEXICO. I THINK YOU AND I HAVE HAD THIS CONVERSATION BEFORE. I THINK IF WE ARE GOING TO BE FOCUSED ON ANY COUNTRY RIGHT NOW IT NEEDS TO BE MEXICO. IT’S IN OUR BEST INTEREST AS A COUNTRY TO BE ABLE TO FIND WAYS TO GET THESE BUSINESSES IN MEXICO AND INTO OUR COUNTRY AS WELL, BUT IF THEY’RE NOT GOING TO COME HERE, THEN THAT WOULD BE THE NEXT LIKELY CHOICE FOR THEM TO GO TO. THE FACT OF THE MATTER IS EACH THE WAGE MARKET IN CHINA IS HIGHER THAN MEXICO. MEXICO IS, I — WAGE MARKET I THINK IS $2.90, SOMETHING LIKE THAT, PER HOUR. FOR OUR STANDARDS IT’S LOW. BUT FOR SOME PLACES THERE, IT’S IN LINE WITH IT. SO IF YOU WERE TO LOOK AT A MARKET, I WOULD SAY THE EMPHASIS — WE ONLY HAVE LIMITED RESOURCES. I LIKE THE IDEA OF GOING TO AS MANY PLACES AS POSSIBLE, BUT I REALLY THINK OUR FRIEND AND OUR ALLY, WHO HAS ALWAYS BEEN THERE WITH US, IS NOW, REGARDLESS OF THE POLITICS OF IT, IS OUR — IS OUR MARKET TO THE SOUTH AND THE PEOPLE TO THE SOUTH OF US, FOR THAT. JUST A UP CULL QUICK THINGS, TOO, AND I WILL BE FAST ON THIS. THE WHOLE THING ABOUT THE EXIM BANK HAVING THE AGREEMENT, I’M NOT A HUGE FAN. I WILL TELL YOU WHY. IT DOESN’T REALLY FOCUS ON THE SMALL BUSINESSES THAT WE’VE TALKED ABOUT BEFORE. A LOT OF THEIR WORK, A LOT OF THEIR MONEY IS JUST NOTHING MORNING CORPORATE WELFARE WHERE IT’S FUNDING THESE LARGE CORPORATIONS. DO THEY HELP SOME SMALL BUSINESSES? YES. BUT THE PRIMARY FUNCTION AND THE PRIMARY DOLLARS GO TO THESE LARGE CORPORATIONS THAT REALLY DON’T NEED IT. AND THEN FINALLY, ON OUR END, I REALLY THINK, AND A LOT OF THE BIG COMPANIES, GREAT TO WORK WITH THEM, GREAT TO FIND WAYS TO EXPAND THEIR TRADE, BUT THE SMALLER COMPANIES THAT DON’T SEE THESE MARKETS BECAUSE THEY DON’T KNOW ANYTHING ABOUT IT, ARE REALLY THE ONES THAT WE OUGHT TO FOCUS ON. SO WHAT ARE — WHETHER THOSE ARE SMALL COMPANIES IN MEXICO — AGAIN, I’M FOCUSED ON MEXICO AS A TRADE PARTNER. OR IT’S A SMALL COMPANY IN ARIZONA THAT CAN EXPAND THEIR BUSINESS BY GOING SOUTH OF THE BORDER, I REALLY THINK THAT WE REALLY OUGHT TO FIND A WAY TO DO AN OUTREACH TO THESE SMALL COMPANIES, LIKE A REAL PLAN, NOT JUST SENDING OUT FLYERS, NOT JUST SETTING UP THINGS LIKE THAT, BUT TO ACTUALLY CREATE A PROGRAM — NOT A PROGRAM, BUT TO CREATE WAYS FOR THESE INDIVIDUALS TO HAVE TRUE ACCESS TO THOSE MARKETS. A LOT OF SMALL BUSINESSES, AND I’M TALKING MEDIUM-SIZE BUSINESSES WITH 100 EMPLOYEES OR MORE, THEY WOULD LOVE TO BE ABLE TO EXPAND BUT THEY’RE JUST NOT THERE. THEY DON’T HAVE THE EXPERTISE, THEY DON’T HAVE THE LEGAL END OF IT. THAT’S WHAT WE OUGHT TO BE LOOKING AT AS THE CITY OF PHOENIX. SO FROM MY END, I LOVE THE GLOBAL PERSPECTIVE, BUT OUR TRADE PARTNER TO THE SOUTH HAS BEEN AN AMAZING PARTNER FOR US AS A COUNTRY AND AS A STATE, AND I THINK THAT ANYTHING WE CAN DO TO FOSTER THAT RELATIONSHIP IS REALLY A BIG FOCUS. SO IN CLOSING, I GUESS, WE OUGHT TO BE LOOKING AT THINGS PROPORTIONATELY. HOW MUCH TIME DO YOU WANT TO SPEND TOWARD MEXICO? HOW MUCH TIME DO WE WANT TO SPEND TOWARD CHINA? HOW MUCH TIME DO WE WANT TO SPEND TOWARD CANADA? THEN FOCUS THOUGH RESOURCES THAT WAY. THAT’S ALL I AM GOING TO SAY. I WILL BE SUPPORTIVE OF THIS, WHOEVER PUTS THE MOTION OUT THERE, BUT THIS AT LEAST GIVES YOU SOME PERSPECTIVE FROM MY END. THANK YOU, MAYOR.>>Mayor Gallego: I SHOULD HAVE ANNOUNCED COUNCILMAN DICICCIO AND THE VICE MAYOR ARE APPEARING TELEPHONICALLY. COUNCILMAN NOWAKOWSKI.>>Councilman Nowakowski: THANK YOU SO MUCH. FIRST OF ALL, I WANT TO THANK CHRIS FOR THINKING OUTSIDE THE BOX. ONE OF THE THINGS THAT WE HAVE BEEN WORKING WITH, I PERSONALLY HAVE BEEN WORKING WITH MEXICO AND OUR TRADE BETWEEN PHOENIX AND MEXICO CITY, HERMOSILLO FOR THE LAST 12 YEARS, AND ONE OF THE THINGS WE’VE SEEN IS HOW SUCCESSFUL IT IS. WHEN WE GO AS A GROUP, AS A TEAM, WHEN WE HAVE DIFFERENT CHAMBERS, THE UNIVERSITY AND EACH OUR CITY STAFF LIKE JUAN THAT BASICALLY UNDERSTANDS THE CULTURE, UNDERSTANDS THEIR NEEDS AND WHAT YOU’VE DONE HERE IS THE CONCERNS THAT THEY HAVE IS WHEN THEY COME INTO A FOREIGN COUNTRY THE LOAN PROCESS IS DIFFERENT, AND THAT’S THE BIG HICCUP THAT THEY HAVE AT THE BEGINNING AND ALSO JUST TO LEASE A SPACE FOR A SHORT PERIOD OF TIME AND THAT’S ONE OF THE BIGGEST CONCERNS WE KEPT ON HEARING IN OUR TRADE BETWEEN MEXICO AND THE UNITED STATES AND PHOENIX. SO I LIKE THAT PORTION OF IT. AND I LIKE THE WHOLE GLOBAL. IF IT WORKS — OUR PARTNERSHIP AND MEXICO AND PHOENIX WORKS, THEN IT SHOULD WORK GLOBALLY ALSO. WE HAVE SOME GREAT REPRESENTATIVES THAT REPRESENT OUR SISTER CITIES IN MY COLLEAGUES HERE THAT ALREADY HAVE THE DOORS OPEN WITH THE POLITICIANS OUT THERE, THE BUSINESSES, AND THE NONPROFIT ORGANIZATIONS, AND WHO BETTER TO OPEN THOSE DOORS THAN OURSELVES THAT LOVE THIS CITY AND WE’RE THE BEST AMBASSADORS FOR IT. I WANT TO THANK YOU ONCE AGAIN FOR THINKING OUTSIDE THE BOX. A LOT OF PEOPLE ARE TELLING ME WHY DID I ACTUALLY WANT TO GO THIS DIRECTION? I BELIEVE THAT WE HAD A JEWEL IN MEXICO AND I THINK WE NEEDED TO SPREAD IT OUT THROUGH ALL OUR SISTER CITIES. SO HOW DO WE TEAM IT AS A TEAM PHOENIX APPROACH HAVE INC. WHY YOU ARE ON SISTER CITIES, ECONOMIC DEVELOPMENT AND THE PRIVATE SECTOR COME IN AND BRING SOME REVENUES TO THE CITY OF PHOENIX AND BUSINESSES. SO THANK YOU ONCE AGAIN. WITH THAT I CAN MAKE A MOTION FOR STAFF’S RECOMMENDATION.>>Mayor Gallego: WE HAVE A MOTION AND A SECOND FROM COUNCILWOMAN WILLIAMS. COUNCILWOMAN WILLIAMS?>>Councilwoman Williams: THANK YOU. LAST YEAR WHEN WE WENT TO HERMOSILLO AND YOU DID THE WORKSHOP AND YOU HAD EXPECTED 75 PEOPLE AND YOU HAD OVER 300 PEOPLE SHOW UP ON HOW TO DO BUSINESS IN PHOENIX, I TRULY BELIEVED THAT THAT SHOWS THE INTEREST IS THERE. IT’S A MATTER OF EDUCATING THEM AND HELPING THEM COME AND TO KNOW WHAT STEPS TO GO THROUGH TO GET ESTABLISHED. I ALSO SERVE ON THE GATEWAY — PHOENIX-MESA GATEWAY BOARD AND ONE OF THE THINGS WE HAVE ESTABLISHED OUT THERE IS CUSTOMS. YOU CAN GET MATERIALS GOING INTO MEXICO CLEARED THERE, AND THEN THEY GET ALMOST IMMEDIATE DELIVERY ONCE THEY GET TO MEXICO. I DON’T KNOW IF YOU HAVE USED THAT BEFORE. IT’S REALLY JUST COME INTO EXISTENCE IN THE LAST FEW MONTHS. BUT I THINK THAT SHOULD ALSO GIVE US A STEP UP BECAUSE THAT EXPEDITES GETTING PRODUCT AND GETTING YOUR MONEY AND IT REALLY MAKES THE FLOW HAPPEN, AND I THINK WE SHOULD USE THAT TO OUR ADVANTAGE. I AGREE WITH THE OTHERS THAT HAVE SPOKEN. I THINK MEXICO IS A — SHOULD STILL BE A PRIORITY BUT I DON’T WANT YOU TO MISS OUT ON OTHER OPPORTUNITIES AROUND THE WORLD BECAUSE PHOENIX IS BECOMING MORE AND MORE KNOWN ALL THE TIME. SO THANK YOU FOR WHAT YOU HAVE SUGGESTED. I THINK IT’S A GREAT IDEA. AND I’M HIGHLY SUPPORTIVE.>>Mayor Gallego: THANK YOU.>>Councilman DiCiccio: MAYOR, JUST ONE FINAL COMMENT, TOO. I REALLY THINK THERE NEEDS TO BE SOME CREDIT HERE. I KNOW THERE ARE MEMBERS OF THE BUSINESS COMMUNITY IN THE AUDIENCE. THE FACT THAT WE OPENED UP THE TRADE COMMISSION, I WAS THERE IN THE ROOM WHEN MICHAEL NOWAKOWSKI INSISTED ON US DOING THAT. HE NEVER GETS THE CREDIT FOR WHAT HE DID AND WHAT HE STARTED SEVERAL YEARS AGO, AND MICHAEL KNOWS. WE HAD MET WITH GREG STANTON AT THE TIME. THERE WAS NOTHING HAPPENING AT THE CITY OF PHOENIX. THERE WAS NO FOCUS, NO DIRECTION AT ALL UNTIL MICHAEL DID THAT. FOR THE BUSINESS COMMUNITY THAT’S HERE TODAY, TOO, AND FOR THOSE LISTENING IN, THE REASON WE ARE HERE TODAY AND NOT UNDER AN OLD MODEL IS BECAUSE OF THE DIRECTION OF HIM. SO WE NEED TO BE VERY COGNIZANT OF WHO REALLY HELPED GET THIS THING STARTED, WE NEED TO MAKE SURE WE’RE ON THE RECORD ON THAT, AND I KNOW MICHAEL IS TOO PROUD TO SAY ANYTHING ABOUT HIMSELF ABOUT THIS BUT WE WOULD NOT BE HERE TODAY, FOR EVERYBODY THAT’S LISTENING IN ON THIS, IF IT WASN’T FOR MICHAEL ON THIS, BECAUSE THIS GUY STARTED IT. I WAS IN THE ROOM WHEN HE INSISTED ON IT HAPPENING. HE MADE IT HAPPEN. AND THAT’S WHY WE’RE HERE TODAY. BECAUSE THIS THING GOT — WOULD NEVER HAVE BEEN CREATED IF IT WASN’T FOR THAT MEETING. THANK YOU, MAYOR.>>Mayor Gallego: THANK YOU. ANY FINAL COMMENTS? ALL THOSE IN FAVOR, PLEASE SAY AYE. [ CHORUS OF AYES]>>Mayor Gallego: ANY OPPOSED? PASSES UNANIMOUSLY. THANK YOU FOR YOUR HARD WORK ON THIS. THANK YOU TO OUR PARTNERS FOR MAKING THIS DAY POSSIBLE. [APPLAUSE]>>Mayor Gallego: WITH THAT, WE ARE ADJOURNED.


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