Yeah, at this time we'll call the uh January 13th, 2026 uh Council Work Meeting to order. Someone want to make a motion to adopt agenda? >> I'll make a motion to adopt tonight's agenda. >> Second. >> A motion and second, all in favor? >> Aye. >> Aye. >> Item three, both budget. >> All right, thank you, Mr. Mayor, members of council. Again, tonight's uh meeting is to go over the 2027 proposed budget. I would say that we're about halfway through our budget cycle right there at that red line item. 713 is where we discuss uh each one of the department budgets and we have representatives from each of our departments here to answer any questions you may have. Um then again, from there we can have as many meetings as needed in order to get this ready for our preliminary budget, which is scheduled for September 14th and then the final budget then approved on December 14th. Just to kind of lay the land out for our budget and our budget components. Again, the main crux of what we're going to be discussing tonight is our general fund. That's the hub of all of our activity. Um again, we have a plethora of accounts and funds that we utilize in order to keep track of all the activity that goes through the the city. Um the general fund again being that hub, we also have special revenue funds, which capture your HRA, your EDA, and your recycling activity. Then we have our debt service funds, um capital project funds, enterprise funds, and then other, which is our TIF funds. But again, primarily we're going to be discussing the the general fund and kind of our capital improvement plan tonight. Um actually, that one was a little bit out of order. If we are to go to the back of the book, which I actually put in the front of the book if you're a bottom line person, um what we're proposing today, again, for um, all the budgets, if you put if you incorporate all those and then um, figure out what you need to levy in order to balance the budget, um, the total levy increase would be 5.8%. So, again, what we're proposing today, all the activity and all the department requests, um, in order to balance that budget, the levy would need to increase 5.8% and that's the general fund levy and the debt service levy combined and give you that 5.8%. So, again, that's kind of the back of the book, which I put in the front of the book just to summarize the actual levy increase. With that, I just want to start with our Sheriff Department uh budget. We have representatives from the Sheriff's Department. Be respectful of their time. I wanted them to go through their budget first so they can continue on with their day. With that, I will invite Mr. Derek Peters up to the the podium. >> Good afternoon, uh Mayor and Council. It's good to see everybody. I'm glad to be back. Um, my plan here this evening is just to kind of go through line by line uh of what we've proposed for 2027. Um, and then if anybody has questions during or even after, um, Commander Erickson and I will will stand and and answer what we need to to uh to provide some clarity here. So, um, for 2027, uh the city we've proposed sticking with uh another 36-hour contract. That's standard for what we've we've done for several years now. Um, in years past, we've we've answered the question of why 36 hours or how do you get to 36 hours in a 24-hour time period? Um, what that is is a a day shifter working 12 hours, then you have a mid shift deputy working 12 hours, and then a a night shift deputy working 12 hours. So, that's how you get that 36 hours in a 24-hour period that provides overlapping coverage um so that we can provide time for breaks and um trainings and things of that nature. So, that's how we get to the to the 36 hours. Um taking you down to line one or directing your attention to line one. It says here 7.56 deputies required for a cost of $910,000, uh approximately. That 7.56 uh is actually an equation that we build in. You only get six deputies for your contract, three on each rotation. But, that 7.56 is built in there to uh account for time off, uh vacations, ESST, which is the emergency safe and sick time. Uh again, that needs to be built in there so that we have somebody standing ready um that's financed by the city to come in and cover shifts when somebody calls in sick for whatever reason or takes a vacation day. Um the rest of those lines three, four, five, and six are all zeros. Um the city doesn't pay for any of these on officers. Uh zero investigators, although we do have an investigator assigned to the city. He works collateral duty with several of the other cities. So, um and also CSO coverage. It's it's non-sworn. Uh but, if we do need CSO coverage in the city, we do have that countywide resource that the city gets um for free. So, pending um and obviously, if we have somebody working that contract. So, the city doesn't pay for that, but those those services are included when those resources are available to us and to you. >> [snorts] >> Uh directing your attention down to uh letter B, benefits of sworn and non-sworn personnel. Um that is going to be all of our contract-based language that's built into uh the deputy contract. That is set by our county budget team and includes our Medicare, uh unemployment compensation, life insurance, health insurance, and dental. I noticed putting the numbers together here that the health insurance increased by 9% dental was 4% which should make sense here when we get to the bottom line number on some of the increases that we saw this year. Obviously, uniforms are included in there with some of the equipment that we're carrying on our person throughout a normal shift. Cost of uniforms and replacement is at 9,072 dollars there per year. For vehicle and equipment costs, vehicle replacement East Bethel gets a car every single year. We always replace it. It's a 24-hour car. Our A shifter or our day shift deputy and our night shift deputy share that vehicle. That thing is running 24/7. So, we always build in the cost of a new car every single year at 45,650 dollars. That maintenance cost directly below it is at 54,375. That includes our 24-hour car and our 12-hour car that our that our power deputy uses. That works 2:30 to 2:30. They get less miles that are put in throughout the year. I think it's roughly for mileage costs we're looking at roughly 25,000 for our 12-hour car and then 50,000 for our 24-hour car. So, that's 75,000 miles for both of our cars and we multiply that by the IRS standard of 0.725 a mile which would equal our 54,375 dollars in maintenance which would obviously include tires, fuel, and regular PM when we're needed for oil changes and things of that nature. Vehicle insurance for both of those cars total $7,538. And then finally our equipment in the cars, um, obviously as technology increases, those costs, um, usually increase as well depending on what resources we have available to us out there at the Sheriff's Office. Um, that's going to include obviously our our emergency lights, all the equipment inside of the car, um, video capabilities and things of that nature inside of the car that have to be built into each of our cars. And then finally self cellular telephone, computers, and computer access. Those are standard charges that, um, are usually pretty static throughout the year. Those are our computer access portals that we pay for per deputy to access state records, tax SBCs, items that we need to do our job. Um, and then other Axon related equipment costs are included in that. And then finally, Roman numeral three, our administrative costs. PSDS maintenance and APS, those are our CAD systems. Um, those are set set standard by our JLEC, which is our joint law enforcement council. Those are standard costs across the board. And the APS is our automated pawn system which we utilize for investigative, cases that require some investigative light work on on things. So, um, that's going to help us track, you know, the scrap metal things, the catalytic converter, and any of the other pawn stuff that we've dealt with in the past. So, that's built into the cost for the city as well. [clears throat] And then finally our administrative and clerical costs. That is 10% of personnel costs plus benefits, um, that goes directly to our staff that are responsible for the billing, our admin staff that put this together. And then, um, all the work that they do on the contracts there, so um >> [clears throat] >> that total cost to our contracting municipality is $1,695,906 less the police state aid of $50,000 $675 leaves a grand total of $1,645,232. So, just a very brief overview, we haven't gotten into the granular detail of what it is that we have here, but this is standard across the board. Um I can stand for any questions or >> [clears throat] >> uh review anything that I may have missed here that needs some clarification. >> When you give your line item deal like that, is there any way that when you do that uh we can have [clears throat] the comparison to the previous year? >> Yeah, absolutely. Um I can get like the like the old contract that I presented last year. Yeah. Yep, I can certainly I can certainly send that to council. >> Right. Thank you. Any other questions for Derek? Thank you, sir. >> If you do, send me an email. I'm in now all week, so um and for the foreseeable future, so happy to help. >> Thank you. >> Thank you. All right. >> All right, I think the next section that we'll go through is our general government. Again, this is this is just going to be a summary instead of going line by line on each one of these budgets. We'll just do a quick summary of each one of the departments, and then if you have any questions on any of the detail behind them, we can we can answer those as well, but um again, within your general government, we have council, city administration, elections, finance, assessing, legal, government buildings, and risk management. So, the council budget as we're proposing for 2027 is looking at a 4% increase and again that's because of the marginal increase in the salary for the mayor and council members. I think that was approved in 2025 but it'll it'll go into effect in 2027. And then there's also just a small increase at each one of the watersheds that actually get billed to this department. So that accounts for the 4% increase. If we look under city administration, that is we're proposing a 9% increase. Again, the increase is primarily due to salaries. We've also built in that intern again to the 2027 budget and again that intern really is a seasonal position that helps with the scanning and kind of uh backing up maybe the building tech position as well during the summer. Increased cost of the newsletter and then computer replacement. We're on a five-year computer replacement plan, so the the computers will be replaced in 2027 for the admin department. So that's what accounts for the 9% increase. Elections, again it's a non-election year, so we don't budget for an election, but we do have some costs involved with renting or leasing the equipment. Now the way this has worked in the past is they've received grants in the past in Anoka County where they have actually been able to pay for our lease with this. So then we haven't had to actually pay that out, but in lieu of that grant not coming through, we we participate in this lease agreement for $3,000 for the equipment. So that's kind of a fixed cost you'll see every every year regardless if there's election or not, so. For the finance department, just a standard 3% increase. Again, that's strictly the salaries and computer replacement. Assessing, again that's a contract with Anoka County that um completes our assessing and that's projected to increase by 1%. Again, that's a fixed cost per unit, but that doesn't necessarily mean a fixed cost per dollar because we have to account for any kind of increases in the actual housing stock or commercial stock. So, again, working with Alex at the county, we forecasted a an amount to to be 64,000 or a 1% increase. Legal, again, we just changed providers with that. That's an estimate. That's a forecast. We're looking at about 195,000 or it becoming flat for 2027. Again, when we signed the contract, there was reduction in both the the fixed prosecution costs and the municipal service costs, but again, those are all dependent on the actual service levels that we we need from them. So, just keeping that flat at 195,000 and as we actually get some um historical data from the new provider, we'll be able to forecast that number better in the coming years. Government buildings, again, we're anticipating that being flat. Again, that's the cleaning of city hall, gas electric utilities, upkeep of city hall, things like that. Again, we're just budgeting that at a 0% increase or it remain flat. And then the last item is risk management. That's your general liability, property, and vehicle insurance. We purchase that from the League of Minnesota Cities. Again, we're just we have um a pretty constant vehicle stock and our property increased was only one. We have a a new house on 65, but that'll be a minimal increase to the the actual bottom line cost for this. So, we're anticipating that being a 0% increase as well. Again, within your budget book, each one of these has their own narrative with um description on each one of the line items that are being um a descriptor for each one of the line items. So, with that, is there any questions on the general government side of your 2027 proposed budget? And then overall then, the general government category is looking at a 3% increase. >> I guess I don't know if this is the right spot to ask it. I mean, why It's under the administration part, but why did is our printing and duplicating jumping so high? It was from 6,000 to 20,000 this year. >> That's for the new newsletter. >> Yeah. >> Additional cost for doing that. >> All right. Thank you. It's just kind of a big increase. >> [clears throat] >> And then, let me back up one uh one spot here just so everyone's on the same page as far as where that 3% increase to salaries came from. That was agreed upon in the the 2026 through 2028 union agreement. So, for 2027, it called for a 3% increase for salaries for the union employees, which in past practice, that's what all 22 staff then receive. And then, a $50 increase to the monthly cafeteria contribution. So, those are the two big ticket items for for how those budget items were derived. With that, um [clears throat] I'm going to let's move to community development which is going to write down this list here and we'll move to planning and zoning and building inspection. Eric, do you want to come up and speak to your planning and zoning budget? >> Good evening again. Thank you Mike and Matt for just kind of helping me think about these numbers. I obviously don't have the background to speak deeply about all of the details. However, the on the on the individual numbers, I don't know Mike if >> I can bring that up. >> This chart on page 25. >> [clears throat] >> I think in in a nutshell we're here to council the the the bulk of the numbers um There you go. um starting at the the the first two numbers, first two lines being full-time employees uh being regular and overtime. Certainly the that's the bulk of the changes that you're going to see from one year to the next. Um and it really boils down to um filling those full-time positions that you had at one point. Um that community development director and a planner. So, you had more you had more staff. Um and so, this budget still contemplates those roles being present. Certainly not something you have to decide tonight um or or as you move forward in your budget, but it does include those at this time. Um and then for the pair of FICA and all those things are related to those those increases as well as a percentage. Um but as it boils down to the bottom in terms of the office supplies, telephone information systems, legal notices, software licensing, all of those are largely the status quo as the previous year. So, >> [clears throat] >> as the council and Matt and you all think about those roles, um that's something for you to consider, but your budget includes that at this time. >> Eric, I got a question. It's like you got small tools and minor equipment up there, and it's been nothing until 2027 and it's 3,000. What's changed on that? >> Yeah. That again is the uh computer replacement program. So, every 5 years then you'll see that number go from zero to 3,000. So, he's got Yep. >> So, that's where it's built in. >> Yep. >> Okay. Thanks. Cuz I see that term a lot and I'm thinking >> How many hammers do you need? >> just to like >> right? >> [laughter] >> Can I get that computer right away or >> Yeah. Yeah. >> Yeah, I'm just concerned. I mean, you're just 35% increase just in your line item period. >> Yeah. >> And obviously the bulk of that is going from um I I can't remember off hand what we budgeted for the community development director position, but we budgeted maybe 60% of that for 2026, and now we're budgeting for the entire position now in 2027. Again, it remains unfilled at this point. So, but it is something that we're just going to show as, you know, the position starting January 1st of 2027. >> And I would just remind council too that if we don't fill that position, we don't spend those dollars, it goes back into the general fund for the next year. We're we're kind of on that precipice right now of trying to determine when we're going to need this full-time position given some of the demand that we're seeing. So, that's why we continue to have it in there for when we need to pull the trigger on that. >> Quick question, Mike. >> Sure. >> On this like computer thing here, why don't we budget a thousand dollars every year for an anticipated rather than getting hit like that? >> Yeah, we could. We definitely could, but because the amount is so minimal, we just have it hit the books at that Yeah, it's if it's something like we do for the equipment replacement funds for the vehicles for fire and and public works. Yeah, since the the amounts are so substantial, we actually have a CIP that covers us, but these are so minimal, you know, we just build it into the budget at that time. Yeah. So, overall again, 35% increase for planning and zoning, but again, that is all driven by that community development director position being filled at January 1st of 2027. And then under building inspection, Nick's not here, but his is his a status quo budget again. 3%'s going to be the salaries and then 1% uh computer replacement. Otherwise, everything is kind of staying the same. Um moving down to public safety, we already have the police protection again. Long and short of it, they're proposing a budget increase of 4%. And then fire protection again, we'll I'll lead with this. It says 16%, but one thing that's happened is um when the when the the fire relief moved to the state plan for the retirement, I anticipated all that money coming from the coming to them in fire relief aid not to flow through to the city and then us pay that to them, which happened. But, from an accounting standpoint, they still want to see that on the city's books. So, I have I had to go back and add the 114,000 as an expense to the fire department budget. But, then I also was able to add 114,000 up above to the revenue up there. So, again, it's 114,000 that the city actually never never touches the city's books, but from an accounting standpoint, they want that shown on there anyway. So, cuz it's actually paid directly to the fire relief. So, again, if you take that out, it's kind of an accounting thing. The fire department budget's supposed to increase by 5%. So, just wanted to kind of lead with that and then I'll let Jeff take it from here. >> [clears throat] >> Mayor and members of the council, um our budget is obviously the 16%. Thank you, Mike, for explaining the 114,000. Uh the rest of the increases are the 3% for salary for both full-time and the paid-on-call firefighters. Um and then uh the CIP uh uh item that we talked about before for being able to replace the trucks as we've talked about previously. Um other than that, um some of the numbers shifted, but we didn't increase anything uh more than I can think of unless I'm forgetting something, Mike. >> No. >> Um so, a lot of that is is the salaries and the corresponding benefits that go with it. >> [clears throat] >> Do you want to speak maybe to the the challenge of kind of forecasting what the actual amount's going to be for your paid-on-call firefighters? I mean, you can say it. Yes, we're going to have 40 paid-on-call firefighters, but that's only one variable you got to consider to kind of come up with a figure. >> Uh so, being a paid-on-call fire department, we are held hostage, if you will, by the number of calls that we respond to every year. Um if it's a if it's a high year or if we have a great increase, that dollar amount that we're paying our paid on-call firefighters is going to be more. It also depends on how many firefighters we have coming to each call. Um, there there's a a whole litany of things that go into trying to figure out that paid on-call or part-time staff cost. Um, with that, um, I think Mike has done a good job with getting us very close with just by trending over the previous years and adding a little bit, um, to cover the 3% um, cost cost of living increase, and then letting us figure out where it's going to be. Um, I think we're on track to be right around the 900 to 1,000 calls a year or 1,000 calls per year again. Um, so with the 3% increase, I mean, we still have 4 and 1/2 months of this year left. But, I think that 3% covers what we've seen, uh, in previous years. >> So, Chief, are we still working on uh, prioritizing our calls that we're not responding to? I mean, I would think that number would drop. >> We have We have made that change. However, we also know that there's a potential that we're missing calls we should be going on. Um, so that's something that we're trying to evaluate on what we're missing that maybe we should be going on, and what we were able to cut out. Unfortunately, it's all That's all driven by who calls 911 and what they tell the dispatcher and how they code it. So, the again, that's something that's out of our hands, and if it changes with Alaina, when cuz it goes from our dispatch center to Alaina's dispatch center, if Alaina changes that to a more severe call, and they don't call back and say we want fire dispatched to it, we never get notified of it. >> Okay. >> So, there's again, there's a multitude of different things that are working to make sure we're not going to calls we we don't need to, uh but we're still going to the calls that we should. >> Okay. >> Um so, we're still working through that, um >> That's what I was wondering if you guys are still trying to get that under control. >> We're trying to keep it under control as much as we can, yes. >> Okay. Thank you. I just got another question, page 33 and 217, medical supplies and stuff on the trucks. Now, if I understand it right, don't we get stuff from Alina? Or is this something different as far as medications and stuff like that? >> No, that is uh we do get the bulk or we try to get our disposables from Alina as we can. Um sometimes that works, sometimes it doesn't. Um the last couple of years, we've been doing a good job. That's why that number is low for 25 and 26, um or sorry, at least so far in 26. Um I would I would imagine we'd be able to actually look at that number going into the 28 budget budget cycle to see if we still need to budget that amount >> Okay. >> um or if we can cut it or reallocate it to where we need uh you know, more dollars. Uh >> So, can you get gloves and stuff also from Alina or not? >> No. >> Okay. >> Those are things >> Okay. >> that we need to buy. Um the medications that we are varianced to give, um aspirin, nitro, uh epinephrine, that kind of stuff, we have to buy. They do not supply the medications for us. So, there will always be a cost for that. >> Okay. >> Um but um our crews have been doing much better job of getting stuff when we can. The other thing that plays into that is if it's a very severe call where they have to scoop and leave, and we've used a lot of our stuff, If we don't get notified or if we If we don't get to grab it then and we don't call a line item to say, "Hey, we need these related to call 123." Um those are supplies that then we buy. >> Okay. Okay. >> Um >> Okay, I was just checking on that just to see. Thank you. >> Yep. >> Any questions further? >> Thank you, sir. >> Thank you. >> Thanks, Chief. >> Thanks, Chief. >> [clears throat] >> Okay. Moving right along, we have our engineering department. Again, that's our invoices from Hawkins and Anderson. These are uh expenses that are not related to essentially one of our road projects projects or one of our uh planning and zoning projects. Uh if it's related to anything um like that, it's actually billed back to the street capital. If it's planning and zoning related or building related, we bill it back to an escrow account. So, the developer has to pick those accounts up. So, this is really just what's left is $20,000. So, um not anticipating any changes in that line item. Nate Well, let's go to civic events before we get to Nate. Um $6,500. This is the only thing in this line item is our fireworks for Booster Days. So, essentially we tell them we have $6,500 to spend. What can we get for fireworks? Or I'm not exactly sure what Carrie does, but I think that's what Along the lines of what she does in order to get the fireworks show and and uh that's that number's stayed pretty constant for the the last few years. Um public works again, we have park maintenance and streets. Each one seeing about a 4% increase. Again, that's mainly just the salaries and the computer replacement. And then for streets, there's going to be a little bit of an increase then too for the CIP as well. So, with that I will invite Nate up to go over his budget. >> Good evening, Mayor and Council members. Um we'll start off with the street maintenance fund. This is kind of our big um daily operations fund. Between this one and the park maintenance fund, they kind of overlap on some of the stuff for our employees. Our street maintenance fund covers our city streets, um storm sewer system. Our repairs on fleet vehicles that comes out of this fund. So, it covers quite a few things. We've got 130 mi of center line roads in our city. 24 of that are state aid roads. 106 are municipal roads and about 14 and 1/2 are still gravel roads that we maintain with our with our road grader. We don't really have much in the way of increases as line items go. Um there's a couple on page 49 if you want to take a look at that, but it's been increased our [clears throat] safety supply budget by a couple hundred dollars just to cover some increased cost there. We're doing a lot more uh repairs to vehicles in house, so our our line item 221 and 229 are items that uh our mechanic takes care of that we don't have to farm out. So, we've we bumped that up $1,000 to help kind of cover those costs. And the big one that Mike mentioned was the uh equipment replacement charges that we're transferring into our equipment replacement fund. But overall, it's the same thing as the other department heads have spoken about. It's uh wages and the personnel side of things are the increase. Pretty minor otherwise. Any questions on the street maintenance side of things? >> [clears throat] >> If not, we can move on to the park maintenance. Here again, these are our full-time employees. They get coded into each one of these different funds, but they do jobs from both departments. And we plow snow, some of that money comes out of the park maintenance budget, as well. But, the same exact issues there. We bumped up a couple items just to cover costs for doing stuff in-house. Um none of that includes contracted all work, so our guys are trying to do as much as they can in-house to save the city some money. And a small bump in the equipment CIP for that one, as well. We've got 250 acres of parkland that we mow and maintain weekly. Um we take care of the building grounds, our city hall, the fire station, some of our other buildings. And we do maintain a few roadway right-of-ways, too, with our annual mowing. Sandhill Parkway, we mow the roundabout there and up and down that road by the ice arena, so quite a bit of ground that those guys cover. Any questions on the park maintenance side of things? >> [clears throat] >> Nate, I'm just thinking, okay, like with your street maintenance and your park, with the staffing part of it. >> Yep. >> Now, you got All right, how many employees do you have? >> There's nine total full-time employees. >> Okay. >> And they do jobs from both departments. We code four to parks and five to streets, but it really could be any person could be interchanged. >> Okay, that's what I was wondering, yeah, cuz how many people Okay, cuz you got 451,000 and then you got 317,000. >> And part of that is it's reimbursed from some of our other enterprise funds. We pay back to help cover some of these costs. Um Michael probably will go over that. Same with our ice arena, some of these costs get back from our ice arena fund, too, so >> Okay, thanks. >> Any questions on those? Which one do you want to do next? Do you want to do CIPs or >> Yeah, you you want to do park CIP or street CIP next? >> Uh whatever one you got queued up, I think. >> we'll just >> Parks was first on the list. >> Nate wants to touch base on his park CIP. So, the park CIP is a 5-year plan that the park commission puts together every year. Um we update it from year to year. For each year, if we ask that the council approve the stuff that's budgeted for 2027, so the next year on the budget. Remaining 4 years can be moved around as needed. Um some of those priorities can be changed as things come up. On the first page there, on page 80 of the uh budget book, is the park acquisition and development fund. This is funded through the money we get from developers when they put in a new development or a split a lot. Um it's not it's not coming from the general fund. The amount that we get varies from year to year depending on what kind of development we have, but for 2027, we are working on the Viking Meadows uh playground development. So, that's going to start here in about 2 weeks. We're going to be putting in the new new playground down there. And it's going to continue into 2027. >> So, now were we responsible for that price? The city? >> That money for that park came from the developer. >> Okay. >> They And actually, they there's more than what we're using in that park, so we'll have some surplus to use in other parks from that, too. >> Okay. >> They put a lot of money and they put the trails in at their cost, the bridge, and they donated the land. So, they there's quite a bit that they put in to make that a nice park. It's going to be It's a really nice playground when it's when it goes in. It's >> The rival Booster West. >> Okay. Thanks. >> So, that'll be complete at the end of 2027. And then, a project we've had on the books for a number of years in 2028 is uh ball field lights for Booster West. It's a big ticket item, 350,000. It's kind of been pushed around back down the list, but it's been a request from the youth baseball teams that have older kids when they play it during the week that their games run long and they need to go until it's the sun is down, so they need lights. And then also our East Bethel Bandits team is looking to use our own field for their home games, but they need lights as well. So. And really after that, we don't have anything planned. It It's Like I said, it's kind of variable on what we get for development, so it >> Yeah, I think the key on this one is if the development happens, then we get park dedication fees in, and then you're you have the money available to have projects, right? And if you don't get any development, then you don't have the money for the projects, so it's kind of wait for the money to come up, and then then you can have projects, so. >> And the park commission has a wish a wish list ready to go, so once the money comes in, they can They got a number of projects that they can slap on here, no problem. Uh the second fund is the park capital fund. Now, this one is from the uh transfer from the general fund. And they're requesting a $10,000 increase, which is what we've kind of done over the past number of years to try and build this fund back up. Uh for 2027, they're looking for $130,000. And the projects they have planned are pickleball courts at a couple neighborhood parks. A trail segment in John Anderson, which would connect John Anderson to the the neighborhood to the uh west. Um some repairs to Booster West or on the fourplex out there. There's some drainage issues and some fencing repairs need to be done. Um a basketball court replacement at Lake Beach, but that one might get kicked down because I'm working with a concrete lifting company right now, and they're going to work on it next week. And if they can repair that doing that method, we'll be able to save that project for something else. And that would get us through 2027. Going down uh in the list, we've got some repairs. The big items are uh Booster East needs new parking lot in it. Booster West does as well. We have that in 2030. Um the tennis courts and basketball court at Whispering Aspen are falling apart again. They need to be replaced or decide what we want to do with that up there. The soils are a little little soft back there, so we had a lot of cracking that takes place and concrete upheaval. And then Bonnie Park is another big part that's been talked about by our park commission for uh a big project for a number of years. It's a 13 acres that's kind of unused right now. We were approached by Soderville Blaine Athletic Association and possibly a private donor to develop that into a a softball complex, so maybe we'll have that coming forward at some point, but that's in the it's in the books. That's one item that we're looking at, you know, it's going to need to get developed at some point. And then yeah, just uh Oak Brook Acres is another development. They're going to come to our park commission in August. The neighborhood's being invited to it. Actually, we're going to have the meeting in the park. And they want to see that park developed, so there might be a playground or something going in there. That kind of gets us through the uh five-year park capital improvement plan. Any questions on any of those projects? >> Do you want to talk about maybe just the procedure and how this kind of works in practice as far as this is kind of what you approve preliminarily is the CIP, but then they also then will bring the actual project back to the city council for that specific approval. But this is kind of the first approval along the line of many approvals before the project actually gets done. >> Each one of these items for 2027 will come back to the council for approval at the time. >> And when they come due, too, so. You're not given the green light right now for everything, but there'll be more more time to change your minds if we need to at some point, too, so. We all are going to have We're also going to have We're not showing it here, but we're going to have a trail a trail fund that we're figuring out how to add that in at some point. They with the trail dedication fees, but we haven't received any of those yet, so. I noticed on your park dedication fees back to the parks capital improvement plan. >> Mhm. >> Correct me if I'm wrong, but I thought we we adjusted that. From 2000 and and >> Oh, yeah, that's a misprint on the bottom there. >> Yes. >> Yep, that's not correct. We can make that change. Good catch. Let's move on to the roads street capital improvement plans. Mike, are you able to bring up that map? >> Oh, yeah. Yes, I got your map. So, we have two funds that cover our repairs, our major street work in the city. The state aid construction fund, the MSA fund is covered by costs that we get received from the state of Minnesota. These are monies that come from gasoline tax, other highway tax that cities get distributed back based on our population, traffic counts, number of miles. Um right now, we currently are looking at $778,000 annually from the state on that. It varies from year to year. I'm using that number going forward, but it usually goes up, so that number in '28, '29, '30 will probably be higher, but >> Taking a while to load. >> Yeah, it's technical difficulties. The uh 2027, we're looking at redoing Polk and Jackson, so this is the road that goes in front of the elementary schools. Grinding up and re-overlaying that all the way up from from basically from Viking all the way up to Sims Road, so the whole all the way down through the S curves and up to Viking. And then also Klondike Drive from the from Polk out to Highway 65. So, those are the two big projects. It's kind of going to It's all going to be under one project, but that'll be in 2027. We're also going to work with the school district to improve some turn lanes and parking by the school there when we do this to help with They have a lot of issues with morning drop-off and afternoon pick-up with car stacking in that area. In 2028, we have Briarwood Avenue. This is going from Highway 65 out to Greenbrook. The asphalt is getting a little cracked up and alligator. We're going to overlay that stretch. Nothing in '29, nothing in '30, and then the kind of the big item that we have in here that's kind of up in the air still is paving Klondike Drive, the gravel portion. Um we'll have a pretty good balance in the fund by that point, so we we can afford it if if the council wants to pursue that. $3 million, but that could be That's kind of a shot in the dark right now. >> I do have a question. What are our plans for the other dirt roads in the city? I mean, we have what? 14 miles >> 14 and 1/2 miles. I think there's 29 gravel roads still. Some of them are a block long. Klondike is a mile and 3/4. >> Right. >> Um right now, our policy is if the neighborhood wants to have them paved, they can petition the city. The city will front, I think it's $100,000 of the project that we would normally be using to for regular maintenance on that. And then the rest is distributed through assessments to the benefiting properties. >> So, how does that work if it's 10 properties on it cost million dollars each is assessed $100,000 and then it's divided over how many years? >> Mike, was it 10 years you did on the last I think it was 10 years. >> [clears throat] >> Yep. It's uh we've had a few neighborhoods petition. It's can be expensive. >> That's up to our specs. >> All right. >> Correct. >> Are you trying to bring up that map or It's not pulling up. >> on? >> Uh it's a separate email. It's It's bringing it up, but then it says not responding when I try to pull it over. Do you need it or >> No, it just shows the location of all these projects. I can I can email it out to you to the council as well, just so you have it, but >> I can put it on my computer, too, if you want quick. Yeah, if you want If you wanted to show it, you know, you pretty easy to >> Let me just pull it up real quick. >> Makes this next part a little easier. >> Okay. >> Um I think it was just one he sent me, but >> Yeah. >> It'll It'll bring it up, but it won't bring it to the other screen. Yep, just plug it in. >> It doesn't quite line up. >> So yeah, so this is uh the 2027 MSA project. Yellow are 2027 projects. Um on the next page is our is our um street capital project. This is funded through transfers from the general fund. We are proposing a $50,000 increase in this annually to try and get caught back up. We're getting kind of behind. A lot of these projects could be done next year. Hi there. Um so for 2027, we are looking at the Gardner neighborhood. So this is the post office. It's all the development behind the ice arena and the post office for overlays and um we do some pipe work and things like that, but it's that whole development. We also have shown on here. I'm not really sure where we're at with that. Biking metal biking turn lane on Sandhill Parkway. We're still working with the county on that one, so that may be in 2027 as well. And then we have a project with Lynnwood. Sunset Drive which runs along the prop where from 229th to 2 I forget what the road is. Bon Lake Drive, but um we had that planned for this year, but Lynnwood backed out. They didn't have enough money to do it, so we're going to carry that money over and hopefully they'll come up with funding for for next year, but that road is you've been down it and it's in terrible shape. >> It's awful. >> We get a lot of calls. We have an agreement. We patch literally our half of the road and their half is potholes, so it's kind of a goofy set up, but we'd like to get that one done. Our city engineer is the engineer for Lynnwood, too, so it works out well in that regards, but they don't have any funding over there, so That's 2027. 2028 is um Riderwood, which we talked about. And then development's kind of behind City Hall. So, this is City Hall here. This is 225th, 226th. And then the neighborhoods off of Sandy Drive. They're in pretty rough shape. It's mainly all just surface stuff. We just do an overlay on it. Uh we've got most of that budget planned for 2028. In 2029, we have Morrison Manor, which is along Laking Boulevard. There's a big park in here, too. And then uh Naples and Ridova off of Laking. We're doing the streets in there. 2030 are the pink magenta ones. This is um up by the buffalo enclosure in in uh the Cedar Creek ecosystem. Uh Durant Street and the adjoining neighborhood. And then this little small development that we have that comes out of Oak Grove. We have to drive all the way around to get to It's called Raintree. Those roads are in there are in bad shape, so And then 2031 is our blues roads. We have um this development off of 183rd down here near the old horse farm. And then this is Columbine Drive. So, that gets us through the next 5 years. And takes care of the majority of our really bad streets, but >> So, what if the streets get really bad that are not listed on there? Do you guys just go patch them up then? >> We patch everything, no matter what. Yep. Um it's depending on what we've been doing, holding it together as best we can. Like I said, a lot of these could be done this year. That's the kind of shape they're in, so That's why we want to get this amount pushed up a little bit higher so we can try and get ahead of this and tackle some of these projects earlier on. >> What's the policy on dirt roads? >> As far as replacing them? We do that with the gravel road resurfacing like we did this year on Klondike. Every about 5 or 6 years we recover them with gravel. That comes out of our street maintenance budget. That's in the the first only one over. We budget I think 50 grand a year for that. That covers the gravel and the chloride on Klondike right now. >> Do we have >> Every dirt road gets new gravel every 5 years? >> It's like 5 to 7 years depending on how much traffic there is on there. >> And they do some kind of other update upkeep for them, don't they? >> As far as >> the gravel roads, I don't know um besides adding moisture to them, do they I don't know. I I just recall um them somebody saying to the last city administrator, can you go take care of Klondike and they did something then and it wasn't scheduled. >> We grade them and then um Klondike is the only one that we put chloride on. That's that liquid that we put down that helps keep moisture in there. That's the only road that we currently put that on. >> And how often do you do that? >> Once a year. >> Just once a year? >> Yeah. Klondike only only lasts for about a month, maybe a month and a half on Klondike because of the traffic on there. On a neighborhood street it will last longer. A lot of people on gravel roads don't like that chloride. It's hard on your car. It's hard on your driveway and stuff, but we also have people that want it to keep the dust down. You've probably received calls on it. I get calls on it back and forth. >> Nate, I got a question like, okay, on Klondike how much traffic goes beyond Beaverbrook? >> It It definitely drops off >> [clears throat] >> Does it? >> at the gun club, yeah. >> Cuz I'm just curious like on something like that, I mean, couldn't you just tar just a little ways past Beaver Brook instead of having >> The last section's pretty small, so This first mile is to this is Palace 8 line and Beaver Brook. >> Okay. >> 3/4 of the year. Yeah, you could. [clears throat] >> Not so I'm just curious cuz I mean, there's enough dirt roads that if we could sneak another one in, well, we wouldn't have to do that. You know what I mean? >> Yeah. >> Shorter road. Cuz I I know I don't like living on dirt roads. I don't know, but I did before for many years. >> I live on some dirt road, too, and it's I know what I know the issues. >> So, Nate, we really don't have dollars set aside in a budget for converting dirt roads to eventual pavement. No. It generally just kind of sets up as a petition from the neighbors, and then they get a dollar figure, and then they all vote against it type of history. >> That's been the history of it. Correct. Yeah. >> Right. Don't you need so many neighbors to want it? >> Our policy has always been that you need a majority. >> But this would be the time if council wanted to to perhaps start a plan for dirt road conversion. You know. >> Right. >> I mean, it takes money, right? But it's may not all happen in 1 year, [clears throat] but you can start building an account if you guys see to that. >> I don't think that's a bad idea at all because I mean, look what it takes to maintain the roads. Big time. >> Yeah. >> Yeah, and that's kind of how they came up with the $100,000 that the city would put in. We did some numbers to see what it would cost over 20 years what the city's putting into it for new gravel, grading, stuff like that. Um so The argument's always been that if you live on a gravel road or if you live on a paved road, when you live on a paved road, you paid for that road when you bought your lot and your house. And when you live on a gravel road, you didn't have that cost. Your Your lot cost was lower, I guess, is kind of the way you look at it. >> Right. >> So. >> Just wear and tear and everything else is more expensive. >> Yeah. Like I said, I live on a gravel road. I got >> I know. >> only issues. >> I used to. I couldn't >> And I know we use class five, but uh I mean, you've heard a lot of talk about re- recycled materials that are coming about, you know, the asphalt recycled, the concrete. Is that stuff any good >> for roads? >> Yeah, we've used We have some roads where we've used asphalt millings. Um it's a lot more money up front, but yeah, it it can work better. >> Do they hold up pretty well? >> Yeah. >> They do. >> Some of the problem with the asphalt millings, um it'll harden up in some spots and not in others, so you can't grade it. You actually have to come in there and try and patch with asphalt. It's kind of a >> And >> the maintenance is a little tricky on it. We have down in Lake Beach, there's a gravel road that goes It's It's Cedar Drive. It goes down into the edge of the Ham Lake. Half of that is asphalt millings. It's really swampy in there, but it gets develops these huge potholes that you can't grade. You have to actually go in there and fill them. >> So, there's challenges with everything. >> Yeah. >> Any other questions on the uh street capital five-year plan? How long you got for me, Mike? Are you going to do arena everything or >> Um let's do equipment replacement next. >> Can you do microphones? We can just You want to go over it and if you got questions, you can pop up or >> Right. I think [clears throat] we've went over this um a couple times already, the 2026 the remaining purchases. I think the uh single axle plow truck has been approved in 2025. Is that correct, Nate? And then obviously we won't take possession of that until late 2026 or possibly even into '27. And we have some extrication tools for the fire department. >> [clears throat] >> And then the for 2027, again, this is the one that um is privy to the budget right now is a front-end loader for the street department, a Kubota for the parks department, Ford Explorer for the fire department, and then the the lease on a new um fire department apparatus. I think we had a couple different meetings on those, and that's uh in there as a lease at this point for a 10-year lease at that 4.89%. So. >> I just want to say something regarding equipment replacement because as you know, I've been kind of not exactly for replacing something because it was a 10-year timeline. And so I did talk to a couple other cities, and some say they drive their vehicles 20, 30 years until it doesn't drive anymore. And it they claim that it saved a lot of money, and they say what did they say? Something about East Bethel trying to um live above their means or something. I don't know, but um so would that save us any money and that we could use for roads or or uh put in a um a an account for future maintenance that we don't have that account for or something like that. Would that work or am I totally off base? >> Uh absolutely. Again, this is just a road map of all of our equipment and the potential dates of when it's going to be replaced, but this is just the first phase and the first approval, basically, of when we think it needs to be replaced, but you again, you'll have other opportunities when these actually are up for replacement to again look at their useful lives and the condition of the the the equipment. Nate, for example, um I don't know how many different pieces of equipment have been pushed down. So, when that date comes up to be replaced, it doesn't necessarily mean that it's going to be replaced. He looks at the condition, he looks at the resale value, he looks at the cost of the new piece of equipment, and if it's feasible to continue to to use it, we just keep continue to push it down. But again, this is just a road map, so we're saving the the the requisite dollars on a year-to-year basis. But again, but that's analyzed on a an annual basis, and he does a good job, I guess, in in maintaining his his fleet and getting the best resale value out of his equipment, and then using it to its very, you know, the extent of its useful life. >> That's a good question what you brought up. This this plan sets a date from when we buy a vehicle, and we put a dollar amount in there to start budgeting. When it comes due, like this this front end loader is not going to be replaced next year. It's in there for for that amount. Um we're going to do a cost analysis later this year, but I I I can tell you right now it's not going to it's going to be pushed down. It doesn't It's in good shape. It doesn't need to be replaced. There comes a point where the cost of the new vehicle gets higher than what we're saving annually, minus what we're making in interest and depreciation and repairs. And that's kind of what we look at for each each thing. Almost everything gets moved down. Very rarely have we moved stuff forward in the in the plan. Um so, we have a 10-year replacement, but it's typically, you know, 12-15 years when >> Okay. >> And like like I said, when we buy some of the stuff, we get it for a a lot cheaper than a general contractor would pay for it. We're able to resell it. We take our guys take pretty good care of everything and they're able to resell it and make pretty good money. We just sold that three-point mower for over $10,000. We only paid $17,000 for it and we had it for I think 12 years, so. >> Do you always sell to the same government entity? >> It's a min bid. It's a Minnesota state auction site. So, people bid on it. So, somebody you know, if there's only one person who wants it, they can sometimes get it for cheap, but typically we find there's you need two people that want it and they'll bid the price up and we've had fairly good luck on selling stuff on there. >> Okay. >> Some of the unique stuff is a little bit harder to sell like a street sweeper where there's not a lot of people that want to buy a street sweeper. But dump trucks, pickup trucks, other equipment, um we've had good luck with it. So, in the long run, yeah, you could drive it till it breaks, but you also have repair costs, you have dependability costs. You can't have a snow plow breaking down all the time or not able to clear the roads for the residents, so there is some cost analysis that goes along with it. It's not just a straight We don't have to do hardly any straight blanket 10 years it's gone >> Okay. >> type stuff, so. >> You want to move to the You want to do the water, sewer, and storm? Our second water, sewer, and water. >> What do What do we first for the What are we putting in the park, streets, and fire off set What is there separate accounts on this? I mean Yeah. I'm reading right, it's like uh >> Streets is $162,000. >> Yeah, streets is 162,000, fire is 162,000. Um parks is 28,000 and then inspections is 6,000. >> And then what do we put into that each year now? >> That's what we put in each year. >> Okay. So streets and fire are the same. Reason I'm asking, I'm just looking when you look at the bottom line. I mean >> Yeah, they're proposing to increase them to the same amount in 2027. In 2026 fire was 140 and streets was 150. >> I'm just looking at the bottom number Mike where when it comes to fire equipment, you're looking at $2 million more at the bottom line over streets and that. I mean, eventually I mean, I know you guys got the plan and you guys trying to increase as much as possible, but when you get down to the bottom line fire equipment's at $2 million more. >> That 30 2035 and beyond it gets a little gets >> Yeah, no, I realize that. But yeah, the longer you can delay usually the longer you can delay the purchase, the better off your equipment replacement plan is going to be because >> I agree. >> We have a we have a nice chunk of money in the account right now that's drawing interest, too. So >> And we're trying to work on a correction. I didn't want to do it all in 1 year, but kind of we've been in Let's go to the water department. That's page Starts on page 67. So, we're not anticipating any increases to the actual rates in 2027. And for the expenses, I'll let Nate kind of touch on the main items on that. >> And real quick, too, you want to talk about how these are funded enterprise funds? >> Yep, so your enterprise funds again are not funded through your general levy. They're strictly funded through the user fees that we essentially bill to each one of the customers. So, on a monthly basis, we get the water meter reads into our system here at City Hall, and we bill out the water and the sewer accordingly. So, once that money comes in, it goes to funding all these expenses that Nate is going to go over here. >> And as far as expenditures go, we are not making any changes on the water side of things. We're in We're in good shape there. Um we have two two water treatment plants, or well, I guess two water treatment areas, the north area by Whispering Aspen and the south area down along Viking. And uh 65, that has a actual treatment facility there. And um yeah, really there's really no changes here. A lot of the uh when we buy meters, we bill that back to the houses. So, a lot of the numbers we see that come out of the budget are actually being billed back to the the builders, but um we have three employees that are certified water and sewer operators, and they they kind of take care of a lot of the stuff on here. Really no change on on the expenditure side for the water. >> One question that usually comes up is this line item here is this transfer back to the general fund. Again, because your salaries are actually getting picked up by your general fund. So, Nate's for example and Jeremiah's for example, Jeremiah kind of being the head water person in public works and then Dez who actually does the utility billing, that stuff is funded through our general fund. In order to bill um and to capture those expenses, the water fund uh pays the general fund $81,000 a year. So, that's kind of how that they pay for our staff services, right? So, that's what that line item is. >> Can I ask why um the per gallon per thousand gallon it's so much higher in Whispering Aspen than it is over in um Viking Meadows El Baj area? >> Yep. So, back when that system was basically um introduced to the city or taken over by the city, that was the rates that they had came up with. So, as we build our customer bases and one of the things we've been trying to do is um get those to be equalized, but they really are on different systems at this point. So, they have different cost levers. So, um their initial costs for their sack and wack, again those are the initial costs that they paid to hook on to the system are different and they're actually less in Whispering Aspen than the rest of the city. >> [clears throat] >> And these costs are different. So, the the real fix on maybe the whole thing is to equalize those initial rates and these rates, but >> I just don't understand, I guess, why it didn't go down because I'm understanding that it's all >> Yeah, but >> paid for except for the services, but >> Yeah. Contractually, there's some rates that we are stuck with on the on the startup side of things. So, the >> By who? By Met Council >> No, it's the a contract between the city and the developer. So, again >> I just feel bad for those residents because some of them have some huge bills and can't even water their grass. I mean, >> [laughter] >> it's it's sad. >> How do you equalize it? If they you've got a contract or that the developer set and the city's got different pricing, how do you fix it? >> It's a conversation between the developer and the city, I guess, to equalize. I would think the initial costs and the operational costs. Or as we've seen in the past is these numbers are going to eventually catch up to the to the other ones. So, >> Oh, god. >> So, the 1750 is eventually going to be the the fixed cost there. And then these will um eventually climb or >> [clears throat] >> meet in the middle, I would say. But, yeah, that's Do you have anything else to add on that one? >> So, >> No, I think I think your system costs are not only covering your operating side of things, but also your depreciation side of things. So, eventually when we replace the lines, there has to be money in an account to do that and that's where these dollars are being budgeted for into the future. Um but then also we're looking at, you know, a potential water tower up there, capital cost of that. That's going to be something that would probably come out of this water fund. Um so, you you take all that into account. Not only operating day-to-day cost, treatment and things of that nature, replacement of that equipment, but then also future major replacements. You have to account for that. >> So, for Whispering Aspen, does some of the money go to Met Council or does it all go to the city or how is that paid out? >> It all goes to the city. Now, the initial cost though, there is a component. So, when someone actually hooks on for the first time to the city's water system, then there is a component that goes to the Met Council. >> Okay. >> Yeah, but operationally, all this comes to the city after that point. >> But, that part that goes to the Met Council is it's a sewer access charge, but it's it's all kind of the initial cost. >> Yeah, I get that. Thank you. >> Uh sewer. The sewer fund, we are um anticipating a 3% increase to the actual rate. So, going from 630 per ERU per month to 650 per ERU per month, and then the usage charge going from 670 to 690. Again, and that's kind of predicated on the the flow charges that the Met Council is billing the city on. So, as their rates increase and their annual charges increase, then we increase ours to offset that. Other than that, is there any other big changes that you're anticipating, Nate? >> Nope. We've got a change to the uh general fund transfer, just a small amount increase in there, and yeah, the rest of it's the professional service fees cost from the Met Council. Oh, we handle our collections, so everything we treat gets sent down to Met Council for the actual treatment. In the past, we had a sewer treatment plant that we ran, but we're only in the collection business now, so. >> Um skipping ahead to the arena fund, again, this is uh user fees that are collected from the use of the ice arena. So, essentially, St. Francis Youth Hockey Association is our biggest user along with St. Francis High School. We take we we bill them out for ice time used, and that is what's used to kind of finance the the operations of the arena. There is no general fund dollars that go into this. Um I think it was what? Two two years ago that we changed management from a standalone management team to the city handling it in-house. So, that's why you see part-time employees now, so we manage the arena with five to eight part-time employees, and then one of your full-time employees. Um Jason Hare, he's the the the project manager over there, and that's where this the the bulk of this transfer to the general fund comes from is basically the city getting uh reimbursed for his duties during the the ice um ice hockey season. >> So, since we made that change, how are we doing with that, Mike? I mean, are are we breaking even or >> Yes. >> Yeah. >> I operation this year. >> What's that? >> We have a reduction from 239 to 231. Our revenues are exceeding our expenditures annually, too, so. >> Good. >> And that includes [snorts] $69,000 going back into the general fund that's offsetting what the taxpayers pay for our So, it's actually making money for the city in that sense, too. >> Good. Good to hear that. >> And we don't get the complaints that we were getting before. >> Oh, well. Okay. >> Yeah, it's it's definitely been a lot nicer on our end hearing about the complaints, so. >> You can have control of it. That's good. Good to hear that. >> Other than that, there's really no big changes on the expenditures there. We bumped up the uh refuse removal to kind of cover the cost of the garbage uh for operating that place, but we've actually like uh Matt mentioned there, we it's $8,000 cheaper is our budget for this year to to operate it. We got a little bit better on our on our uh estimates on what it's going to cost for the uh part-time help, I think, is the biggest thing. We were kind of guessing on what it would cost and what it actually We're getting a little bit better numbers on everything now, so it should be more accurate going forward. >> Do we even have any dry floor events there anymore? >> Yeah, there was we Yep, we do. Um the baseball teams have used it the last 3 years, so. It's not a huge amount, but it it's it helps a little bit. We don't staff those. We We give them a key and monitor them with a deposit. So, we don't have any part-time costs there. >> I know years ago we used to have gun shows and stuff there, too. >> Yeah, I used to have a gun show. One time they had a circus in there. They didn't get an elephant in there. There was back in the '90s there was raves in that building, so. We haven't been approached by anybody looking to use it yet, so. All right, that's it for me. Thank you. >> Thank you. >> Thanks, Nate. >> Just wanted to bring up the Let's see. We went through I believe we went through everything but the TIF district uh part of the book. Essentially, we have four different TIF districts. They're all kind of on autopilot at this point. These were started how many years ago and now as they meet the annual requirements of their TIF agreements and they pay their property taxes essentially, then this is paid back to the city and then we through tax increment and then we pay back um the the increment to the developer in the form of a pay-as-you-go note. So, that's actually on tonight's agenda. There's four different uh five different payments going out tonight, but essentially the city takes the money in, it uh keeps 10% of that and then pays 90% of that out back to the the developers and those are on the books until the pay-as-you-go notes are satisfied and then as that happens then the full value of those developments get put back on the the tax rolls and become fully taxable to the city. So, >> How's that work when uh a TIF doesn't fulfill their obligation of >> Yeah. So, it's a good question. So, we >> the apartments cuz they were supposed to put that clinic and everything in as part of that TIF. >> Yep. So, essentially that never happened. So, there was never never anything um I guess uh approved upon there. So, the four active ones we have, if they don't meet the requirements of their agreement, then the city doesn't pay out the money. So, you know. >> Okay. >> So, again, we've got the four TIF districts. We've got the apartments one and two. So, there's two different payments associated with that one. The Viking Preserve as if you recall that only uh I believe it was 35 of the homes actually income qualified and 13 of them didn't. So, 13 of them fell off of this district and we continue on with the 35. Um the Trident Senior Living and then the Aggressive Hydraulics. So, each one of these has a pay-as-you-go schedule with what you can kind of deem as a mortgage with it, a mortgage balance. It's not a mortgage, but it's something you can kind of equate it to and then as we pay these down, that balance slowly whittles down to zero and once it reaches zero, it goes back on the the tax rolls, the full value of the prop- the parcel. Okay. I think we have a little bit of time left. Any questions on TIF before we I wanted to touch on the the revenue side of things. >> First one. >> So, within your budget book, it's page five is a good summary of all of your revenue sources that are used to uh essentially make make the expense payments. And again, for each one of these line items, there might be three or four different line items in detail behind them, but I just want to go go through it in kind of summary fashion just to make sure we don't have any questions on this. So, um the first line item again is your property taxes. Again, it's pretty self-explanatory, so at the at the end of our budget cycle and getting the input from the department heads, we have to basically back into what we need in order to balance the budget, and that's where um that 6% increase comes from. Um we also have to take into account all the other revenue sources that the city has. So, franchise taxes again, we're anticipating that decreasing by 18%. Again, it's not a huge number dollar-wise, but it is a trend downward, and essentially that has to do with our Mid-Continent um subscribers out in the community and how many different subscribers they have, and if it's trending downward, then we're going to uh receive less money in franchise fees. So, that's what we're seeing, so that's kind of what we're budgeting for. Again, that number isn't something they send me in the mail that says "You're going to give you $47,000." It's just a forecast. So, depending upon their subscriber count, if they have a lot more subscribers, then we would receive more more money in that category. Um payment in lieu of taxes, again, that's the agreement that we have with Nexus. So, on a semi-annual basis, Matt and I send them out an invoice and they pay it like a property tax, but instead of paying it to Anoka County, they pay it directly to the city. Again, I think the agreement was that it it escalates 3% a year, so that's why why that one's going up three and change. Um as in past years, we're using $200,000 in our excess fund balance to balance the budget. Um special assessments, these are again agreements that have been um done years ago that are still on the books that um I believe they were had to do with a a project that's been closed since it was its inception, so it's still on the general fund books and that's just decreases on an annual basis until it's paid. Um building inspection permits, again, those have been robust in past years and have a good historical data in order to forecast in the future, but again, we it's not something that we it's not 100% known, but we use trend analysis to kind of figure an amount to to use for the 27 budget, so we're anticipating that really staying the same from 2026 to 2027. Under state aid, again, your big components of that is the state pays you X amount of dollars for roads and then like I mentioned about an hour ago is the fire aid. Even though it doesn't touch the city's books, we have to show it um as revenue into the city. So, revenue into the city up here and then in Jeff's budget and the fire, it's expenditure out, but it never actually hits the city's budget. Fines and forfeits, that's Anoka County fines and forfeits for infractions um that they do. Again, we've got good historical data to figure out how much to budget on an annual basis there. Intergovernmental charges, again, that's where all this money that you're billing out to these other funds comes in now. So, the the transfers from the the water fund is to to fund the staff time, the sewer fund, the arena the arena fund. All those now get captured right here. So, it is revenue to the the general fund. Anticipating that going up about 6%. What else? Site lease revenue, that one is a number where we pretty much have a good handle on it because each one of these have contracts that escalate roughly 3% a year. So, you take the the years the prior years' amount and then you escalate it by whatever the contract says and they pay us on a monthly or annual basis in order to um fulfill the obligations under these site leases for our cell towers. We have two different cell towers. Gambling contributions, again, this is one that you don't know. This isn't something someone hands you a sheet of paper and says, "Well, we're going to pay you 60,000." It all depends on the appetite of the I guess the the gambling um parties that uh gamble at each one of these establishments and obviously then we get uh 10% as a contribution on a monthly basis. So, um uh we we don't anticipate any kind of revenue change in this category, but we um budget $60,000. Refunds and reimbursements, this is again one of those that um just looking at uh trend trends from the prior years. This is any kind of dividends that we receive from the League of Minnesota Cities or um any kind of insurance um claims that we get money back um when things happen. We budget 29,500. It's pretty been pretty steady number. So, we don't anticipate any change in that. Interest earnings, we have a portfolio with each one of our funds. So, we have 22 different funds, and this is just the interest earnings for the general fund. So, again, I take an average amount of the cash balances throughout the year and multiply it by what I think the interest rates are going to be, and it kicks out a number. So, again, using trends and and that kind of approach, we don't want to anticipate any kind of change in our interest earnings for [clears throat] 2027, but again, that's based on an unknown, which is interest rates moving into 2027. So, >> Can I ask a quick question? Historically, do you tend to underestimate this income or overestimate? >> Specific to interest earnings? >> To this this whole chart. >> Um >> Of what you're everything you've gone over [clears throat] there. >> Yep. From a revenue side, I think we we go under. We underestimate what we think, but we try to be, you know, it really depends on the category. Again, if if we For things that we know are safe, like street state aid, we feel that it's a pretty safe bet that the state's going to pay us that amount. We we budget pretty much right on, but other things that we're just not as sure on, we we kind of budget really uh conservatively. So, >> Thanks. >> Yep. >> I had a question, Mike, on our fines and forfeits. Where exactly is that coming from? >> Um it's a good question. So, it's through Anoka County. So, on a monthly basis, we get a electronic deposit into our account, and it's any kind of infraction that they they have within the court system. So, it could be speeding tickets or uh other things like that. >> I'm curious, do we know how how much it actually costs the city to prosecute this as compared to what the city's bringing in? >> Y- um I think it's just you could just take a look at what we're paying the attorney and prosecution costs, and then obviously, we it's not even close to what we're receiving, right? So, it's >> 100,000 in the hole. >> 1/10 of what we Yeah. So, then again, I don't really know the the formula they used to give us the money back and whatnot, but >> I think we have a fixed prosecution 10,000 a month that gives 9,500 maybe is >> Yeah, 9,500. Yeah. But >> times 12 and >> But, that's kind of how we derive then our our revenue side of things. And then obviously, whatever remaining then has to be picked up by the taxpayer, which is our property taxes. So, again, summarizing then what we're anticipating for the general increase, we have the general fund tax levy of 6% increase. We've got that 2015A bond issue, which again is we follow an amortization schedule that was set up 15 years ago that we cash flow every year by increasing at 3%. Um and then it cash flows it for the life of that bond. The last payment is in 2040. Um the other 2014A issue, that one we just set at 230 and that's enough to cash flow for the remainder of the bond life. And again, that one is also the last payment is 2040. Um you add up all those and it's a 5.8% increase then to the city portion of the of the levy, but then we also have these other special levying authorities within the city. Again, the EDA and the HRA, these were Again, they're just in their preliminary at this point, but these were approved at each one of those meetings. Um 12% increase for the EDA and 0% for the HRA. So, that's an 8% increase for those two uh special entities. You add them all up and it's a 5.9% increase for all those levies that um this body has uh approval authority over. I think I hit on everything I wanted to, but is there any questions on any side of the expenditures or revenues that anyone has? Again, a lot of information here, but um obviously Matt and I are available anytime anyone wants to um sit down with us or have a quick call over the quick call, phone call. We're more than happy to answer any questions you have as well, so. >> Um building capital, I mean, I see we're transferring 50 into it, but we've got 2.5 million worth of uh uh coming up due on just repairing stuff on our buildings. I mean, 50,000 a year ain't going to suffice. That 2.5 in 5 years. I mean, we got to def- definitely start looking at this going up somehow. >> So, Mr. Mayor and Council, a couple of ways of maybe looking at that. This year we had kind of a big bump because of the capital improvement or equipment uh you know, management on on the purchase of equipment. And also had a you know, looking at replacement of fire trucks and that sort of thing. We didn't necessarily want to compound that, but then the the other way of of looking at it is if we are going to be looking at space needs, we can weave that into some of the work that's done here, too. So, maybe the combination of both, we can address some of that next year as opposed to adding it to this year was kind of the thinking. >> Okay. >> One of the >> But but it's not going away. You're You're correct in that. >> Yeah. >> And this one thing to keep in mind with that building capital fund is we have built a pretty substantial balance in that account over the years by just saving money. So, we do have 483,000 in that account. So, that $50,000 is is just one piece of the the puzzle with that as well. So. >> Question, Matt. Is Is Is what is happening at the capital with uh the award we're getting with the grant or whatever that is. Is that going to affect our budget? And how? >> It's a loaded question. First of all, we haven't received those dollars yet, so we're not budgeting those dollars yet. Um you know, that that'll be a council decision. So, for example, there's a couple options on the table. Uh if we're tearing up Polk Street, do we then, you know, take advantage of that then and lay pipe in there and and um So, the these are some of the decisions that you'll get to make as to whether perhaps we do a, you know, a little more work on the streets and there might be additional costs on that. So, I don't want to say there's no impact. There could be some impact. Uh ancillary impact, but um um you know, you've got You We're still looking for 4 and 1/2 to 6 and 1/2 million from the state next year. Um the reason why it's two figures is because it was 4 and 1/2, but with the federal haircut up to a million, we're going to go The plan is to go in and ask for 6 and 1/2. Um if they only award us 4 and 1/2, then the money that we're missing in that is what's called contingency money. So, you find unsuitable soils or something like that, all of a sudden your costs go up to try and remediate those soils. We don't have those dollars in the project now because of that $2 million reduction. So, there could be some impact to the city. Um I think overall you're getting you know, $10 million for what that minimal impact might be. I We don't have a figure on that though, and we won't know until >> until >> bids come in and you know, we know exactly where we're sitting. Right now, bidding is an excellent climate. Uh in a year from now it could be you know, night and day difference. You just never know. >> Right. >> Yeah. >> It's all about fiscal implant or impact on our residents. >> Understood. And And that's You you've always You always heard me talk about opium, other people's money. I am I want to try and focus on that. So. >> Okay. Thank you. >> Yeah. >> Any other thoughts on where the levy stands? >> So, historically Mike, we've had a 3. 9 in previous years. >> Yeah, I can bring up the historic uh >> So, this is a 5.9 and again, a lot of the cost drivers are going to be I'm going to throw the fire chief under the bus here. No. But, that is a cost driver is kind of taking advantage of of um some equipment, some good deals on equipment right now that we might not otherwise I think it was kind of scheduled for 2030 or or beyond, uh which really wasn't managed, you might see in the past. And so, taking advantage of that is kind of a little bit of a cost driver. Um and then um you know, I don't know I know there's some dollars in there for road road uh cost anticipated increase in cost. Obviously, if fuel costs go up, your cost of asphalt goes up. I mean, you have to try and budget for that, too, but overall um I think the majority of the cost can be attributed to public safety. Which most folks, I think, can Nobody loves Nobody loves increased cost, but public safety is a good reason for it. So. I didn't throw it under the bus today, Chief. >> [laughter] >> Threw him under the fire truck, is what >> And then the obviously the community development director position, too, funding that one at 100%. Another driver. >> I think eventually we will need to fill that that position probably sooner rather than later. Um Trying to find that position, I know we've tried in the past, and it's difficult, but I think given again, these pressures and some of the calls, and Eric, I think, can speak to some of that, too. We're starting to get a lot of inquiries about, "Hey, what can I put on this land?" You know, um people see the the highway, they read about the highway investment on 65, and it's coming. Uh so, how do you how do you respond to that? Well, you try and try and make sure that you have personnel in place to handle it first of all. Uh but you want to time that. Um and um and otherwise it's it just becomes community development department has kind of been in disarray a little bit in prior years. And so we want to make sure that's an important department for you know, answering questions and helping folks out when they're calling and they they want you know, they want their issues solved. And um and so responding to that, I know this evening Eric's going to talk a little bit about one of the projects coming in. The project I think that the city at least in in in terms of um what they would like to see come to the city, it's it's right along those lines. So this is kind of you know, one of those positions that responds not only reactively, but then also potentially can be proactive, you know. Uh going out and pursuing uh your commercial industrial type investments uh which bring jobs and and tax base. So um that's why that position is in there. But again, I want to reiterate if we don't fill a position we don't spend those dollars. So just goes rolls to the next year. Any other comments? Last-minute thoughts? >> When's the next budget meeting? >> We're just looking for direction from the council as to when the next one will be. Again, the the only one that is scheduled for now was September 14th, but if we'd like to have another one, we can have as many as you'd like. >> I would like one because I want to analyze this a little bit. My email has not worked this whole month, so I didn't get anything in advance. I don't know what's going on. >> [laughter] >> So, I would like to um analyze this a little bit more. >> Sure. >> How long we need? >> I'd say mid-August. >> Want to have another meeting at the first meeting in August? >> Yeah. >> Does that work? Everybody good with that? >> Yeah. >> Okay. I'll have another work session. >> It shouldn't take us long this time. >> Nope. >> Sounds good. >> Perfect. >> All right. [clears throat] Thank you. Yep, thank you. >> That, I'll entertain a motion to adjourn. >> Motion to adjourn. >> Second. >> Motion second, all in favor? >> I. >> I.