All right, at 6:30 we'll call the Monday, July 28th, 2025 city council meeting to order. If you could please join me in the pledge of allegiance. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> Thank you. Any additions to the agenda tonight? >> No additions tonight, Mayor. >> No. No. Look for a motion to approve the agenda as presented. >> Motion >> second. >> We have a motion, a second. All in favor say I. >> I. >> I. Oppose. Same sign. And motion carries 4. That will take us to public comments. If anyone would like to discuss anything not on the agenda, please come forward. Seeing no one, we will close public comments and move to the consent agenda. Is there anything that needs to be pulled for further discussion? Uh, one quick note on the minutes that was caught uh, in the city council meeting minutes for July 14th, 2025. The opening items. Uh, we had the meeting being called to order by Mayor Dodge and it was not since he was not there. That was Vice Mayor Felt that did that. So, that will be corrected. >> And we have the same for the uh, >> the workshop >> the workshop minutes too. >> Yep. Well, so we will correct those. >> Perfect. Thank you. >> All right. With that, then I'll look for a motion to approve the consent agenda with those changes to the council minutes and workshop minutes. >> Motion >> second. >> We have a motion to second. All in favor say I. >> I. I. >> Post same sign. Motion carries 4. That will take us to adopt resolution accepting donation from the mayor baseball club for disc golf course openhouse and tournament. >> Thank you, mayor. So, our disc golf course openhouse and tournament is set for September 6. It'll be starting at 10:00 a.m. and going to approximately 2:30 p.m. Uh, the tournament will take place first at 10:00 a.m. and that should go to about 12:30. Then we'll switch over to the open house. Uh, Craig Nettle from Anova, who we bought our baskets from, uh, and a former, uh, disc golf professional himself. He'll be on site and he will be giving lessons, showing people how to throw and uh giving demonstrations and then people can go out and do the course. But as part of this, we wanted to give out some commemorative items for the grand opening of the disc golf course. And the mayor baseball club is gener generously donating $2,000 towards that cause and that will be used towards the design and purchase of uh custom discs that will be uh are in production right now. and they'll be given away to everybody who attends. First come, first serve until we run out of them. We're anticipating getting about 200 roughly in there discs. >> Wonderful. >> All set total. And we're breaking that up. We're going to have um some for advanced players. We'll have some for adults that are just beginner level stuff and then we have some for kids as well. >> That's great. >> And what was the date for that again? September 6, 10:00 a.m. to 2:30 p.m. with the tournament being right off the gate. Perfect. Thank you. So, with that, I'll look for a motion to approve resolution 2025-15. >> Motion. >> Second. >> Have a motion, a second. Any further discussion? Hearing none. All in favor say I. I. >> I. Oppose. Same sign. >> Motion carries 4. So, thank you to the mayor baseball club. That is a generous donation of $2,000. So, very much appreciated to help kick this off and and really make it a success. So, we appreciate that. We will go to city council reports. Council member health, anything to report on? >> Uh, just had a personnel committee meeting. Still working on getting uh somebody hired for the public works supervisor position. >> Perfect. Council member Jackson, >> nothing new. >> Council member McNeely? >> Nope. >> Nope. And I also as part of the personnel committee meeting, we have identified some candidates we're going to reach out to and try to get some interviews scheduled not for next week. Uh Kyle's out who's going to help us with the interviews. So we're going to uh start scheduling for the week after and best case we will have a recommendation to council hopefully on August 25th meeting is what best case we're looking at. So >> uh we'll see where that goes. So with that I will look for a motion to adjurnn. Motion >> second. >> Motion second. All in favor say I. >> I. >> Same sign. We are adjourned. 4 Z. >> With that, we'll jump right into the workshop and we'll call that to order. Thank you, mayor. So, we'll just we'll jump right into it. We had our uh finance course the last time. Thank you guys for staying brighteyed and bushy tailed through that endeavor. This time, we're going to get right into the budget itself. So, this first goound, I'm going to go through all five of the funds. I'm going to go through it line item by line item as it makes sense to do so and then in future iterations as we make tweaks and things like that I will give updates on that and then we'll slide into CIP and things like that as well. So without further ado right at the top here for property taxes um I've adjusted that slightly as we going through this process. Uh so what I normally do is like I said I'll take this number copy into here but as I've been formulating the budget reduce it down to here as we're looking to keep things stable moving forward and that all flows into like we had talked about my spreadsheet over here where we look at the general fund levy and how overall what the total levy is doing when you include CIP and debt service in there. So changing in here to meet make the general fund flow but then changing here to make sure the overall levy flows as well. Uh next on that alcoholic beverages. Uh so this was what we had had in 24. Um at this time we were weren't sure what um we weren't sure um Elheim before them. >> Who was it? >> Agave. >> Agave. Thank you. We weren't sure what was going to be happening in this interim. Uh so we had it low there. Once we had a better idea on that and now that we've got full lensure on alcoholic beverages, now we know exactly where it's going to be at on this end of things. So we're good to go on that front. So that's been increased to reflect what we're doing. >> And just to clarify, that's permits, correct? >> Permits. Yep. That's uh liquor licenses. Uh >> yes. Thank you. >> For the major ones as well as the temp ones we give out. baseball club, the gala for Mayor Lutheran, Lions Club has a couple of them to get things of that nature. The other one I edged up slightly was building permits in general. Um, so it had been at 50 grand and I had held it at 50 grand because I wanted more data as we were moving forward and got things together. We've been trending about 120,000 a year. 120 130 has been what the total has been. I shifted it. Um, as of today, I looked at it, we're just slightly over 90,000 on the year for building permits. So, we're on track for that. But again, when I talked about this, I think in 24 going into 25, I don't, unless you guys tell me otherwise and you want to rely on it, I don't want to rely on this number because it can be volatile. If you get another slump and houses aren't getting built, this drops. Well, the only thing that can make up this and this sort of scenario is right there. >> The levy has to go up to compensate for that because I don't have money levers elsewhere. So, we've been keeping this at a safe level. And now that we're seeing levels like this, it's been 50, it's been 120. I assume it'll get up to 120, at least 100 by the end of the year. So, I feel safe inching it up to that 60 at this point. I don't know if I want to go much higher than that. Again, we'll let data drive our decisions. >> What does that mainly consist of? New home building permits or >> new home additions and then uh just the multitude of just miscellaneous >> like building what percentage is new homes of that. >> We were just talking about that today. We're going to be working on parsing out that to get a better understanding of what are the drivers of our revenue sources. We're we are having that cons uh discussion this afternoon and um we want to know what the split looks like so that if the housing market does tank what does that really mean for our revenues rather than guessing this as a whole since everything is conglomerated. And the other thing is, you know, we don't have a lot of open lots for new homes, >> right? >> So that also can limit, you know, we have, what is it, the eighth edition? Is it >> eth edition is currently what's open. We experienced this back in 21. >> Mhm. >> Because the seventh had wrapped up. >> ETH was not online yet. Correct. So there was this period of there's no open housing lots other than the scatterings >> and I think a lot of those scatterings actually are being built on. >> Yes. Yes, they are. >> So I'm just curious just cuz I like what we're doing here but if we don't have any additional if there's not another builder that comes in and opens up another 10 lots or >> Yep. you know, we're going to start having limited because I would think a a lot of that is from new homes >> and that's where we're going to drill down into it to figure out what percentage is coming from what categories. So, we can run scenarios if we had zero houses built, what does that look like, >> okay, >> to get a better handle on this. >> That breakdown will certainly help, I think. >> Yep. Drivers in that. But for now, I feel safe doing this uh ninth edition, the preliminary plat. So, the next edition would be the ninth edition of the land which Lumis does own. Uh, funnily enough, their preliminary plat is coming up for renewal once again, probably at the first meeting in August, I would guess, for their extension on it. Animal licenses, um, these these never really hit these marks. What we're getting out of here is a little bit for chicken licenses. >> Oh, okay. and I'm reducing it to zero. And the reason I'm doing that is as we go through updating our ordinances, I've been looking at the chicken ordinance and rather than having an annual license, I would like to have a license that lasts three to five years because we do complaint based. We don't do annual checks to go in. We'll get roosters out there and then we'll address those at the time. But for not going out there doing physical checks, why are we collecting 20 bucks, 25 bucks every single year? just do a license at less x amount of years >> to make it easier for everybody, less cost and less administrative headache. Local government aid, this is the uh funding we get directly from the state. They produce these numbers, they produce final numbers in September of every year. However, the year prior, they do do projections based on a formula. And the formula gets updated about every decade once the census gets updated. They'll do a formula review and make changes based on that. So, this is the preliminary. Usually, it's pretty darn close. And we're slated to get about $1,900 more dollars from the previous year for county grants. This is for the the where we get this is this is for operation of our recycling and compost site. This is two grants we get out of this. One is for the recycling site that pays for uh the activity that goes on there as well as some of Rick Becker's wages. And then the other one that we get and which is actually the cause for the increase is the compost site. We've been requesting it the county has had additional funding and we've requested additional funding to do more at the compost site, do more chipping, do uh screening of the piles and things of that nature. So, we've requested that before this year we're actually going to get about 12 grand, but I didn't know at the time of the 25 budget that that would be increasing. So, this will be what we're closer on getting with the compost site grant. So, that's that increase there. Um, this stays at 3500 state reimbursement for snow removal. This is for work we do along Highway 25 for collecting, dumping, things like that. This number you can't really do zerobased budgeting on because if you could guess the winters, you could actually predict it. And so you just some years it'll be on, some years it'll be low, some years it'll be high. You just try to average this thing out. Compost collection charges. Uh we get 25 for the operation of our recycling and compost site since New Germany uses it and they don't have one of their own. Each year they give us $2,500 which the county actually reimburses them for. So, >> so that's why that figure is in there. Community center rental. Again, looking at the trending of this coming post pandemic, uh we've seen marked increases on the use of the community center. Last year, uh in 2024, I think in 2023, I think it was up around 10,000. 2024, it was up around we're seeing about 9,000, a little over 9,000. 9,300, I think, was our total for 2024. So, now that I've seen a couple years worth of data that points towards good usage, and we're seeing good usage this year as well, I think through where we're at now, we've got about five grand in community center rental when I checked today. So, figures are staying strong to bump this up a little bit, too. Interest earnings staying about the same. That's been pretty close to what we've been seeing. um charitable gambling donation. This is the amount that the mayor baseball club gives us at the beginning of the year. This doesn't count these offend for the fire department or for um disc golf tournaments, but this is their 10% that they give us according to state law tower and tenner rent. We have there are inflators built rental inflators built into the contracts. So I factored those rental inflators into that there. So that's what you're seeing there. Refunds and reimbursement stay about the same. So now hearkening back, you can see we're going from 41,000 now we're getting into 42100. So now we're in law enforcement. So this is the post reimbursement we get from the county for the sheriff services office. They remit that back to us. Uh and then for fire contracts, this represents the a change to the new contracting system and the way we were calculating things. We had talked about that I think in previous years that that was going to get updated. That's been implemented. So this was kind of a flukeish year and a bump up as we're transitioning through. So what's happening is more of these funds, they're they're getting more precisely split out according to CIP versus operations. in what we're doing. So, we're getting more precise in that. So, the operations portion, which is what this is, went down slightly and the CI CIP portion went up accordingly based upon the formula. So, we're now entering a period of stabilization in this. And then when we look at refunds and reimbursements, as you can see, this is 42200 which is fire department and this is for fire department training reimbursements and the I'm blanking on the grant program, but it's the state level program for reimbursement for uh Vulmer uh dependent insurance that we get back from the state. So overall revenues down and that's primarily we're sitting here. Well, one, we're dropping this end on property tax. So, you see revenues down. Well, it's planned. It's not just a drop off for no apparent reason. >> Could you go back over our methodology on why we're dropping the first line on here? >> So, this one I dropped down a little bit and this is not set in stone. Um, when we set our levy, we we set the total levy >> because I know we talked about this, but can you just refresh my memory? >> Yes. So, as I'm tinkering with that number, I'm looking at this. I'm So, what's our debt service doing? What's our capital? What is that looking like? And then I'm looking at what that total is going to be here. And then I'm comparing against last year. It's like, okay, what is it doing? It's going up, down, we staying steady. And then I get a comparison of what it's doing there. And I'm trying to keep this in close ballpark range. So I put the 430. We're looking at going up 10,000. So where I look at this one, yeah, this tells you that it went down by 28,000 from uh this year to next year. Wood proposed draft. But then the other part we look at is when we get to the final bottom, revenues over expenditures. So yeah, revenues went down, but if expenditures also go go down by an even greater amount, you're still in the black on that. So right now with adjustments to expenditures, we're still 7,600 revenues over expenditures. So all being equal, if this carried to the end of the year, you could drop the that first number down additional by that. And then the you're balanced >> because we want to be zero. >> You want to be zero. You want this number to you want that number to be zero when you adopt final budget >> and balanced out. >> Okay. >> So right now we're in the that's where I adjusted because I didn't know it knew it didn't need to be there. Dropped it down. And as we and if for you know we get into the expenditure side of things and I find you know in October I'm discover something where we got up on an expense we can adjust that first number up to continue to have that balanced approach. >> We're just floating that and making it work towards balanced at the end. >> Correct. Thank you. I just it's nice to have a refresher. >> Yep. So onto the expenditure side. Um looking at decreasing auditing services down to about 26,000. I don't know if this will hold, but from what we were spending le over time, we've been using them less and less, relying less on their services for capital planning, long-term stuff. We've taken a lot of that in house. Tracy being on board, we're taking even more in house than we used to with them. So, we're seeing that drop down. I think we're going to get into a happy meeting because we still had had some usage of them on a time and materials basis for things going on, but as our staff is now getting comfortable, settled in, I think we won't need it nearly as much. Not that we were using it a ton before, but it gets even better. Engineering services should stay pretty darn steady. Legal should stay about steady. We're under on both of these, but these are one of those areas if you have things crop up, they happen, and you don't want to be caught on that. A lot of these other things are holding pretty steady when I look at what we're paying for telephone pull up the bills should be holding pretty darn steady. A legal notice is publishing. We've been since we've been doing more with our ordinances doing more on that front. We're we're expecting more when it comes to expense as we update those things. Once we get through things that should drop back down again. Insurance in general that has dropped a bit. Uh, I haven't gotten property casualty back yet, but today, this afternoon, I did get the invoice for our workman's comp, which is the two components of insurance. It's work comp and it's the property casualty through the league. Um, whereas our general insurance, health insurance is handled, we'll get to that, but it's handled elsewhere for items. So, this is just those general insuranceances. The league dropped their work comp dropped by a good share, which helped us out. are I just got the invoice. Last year we paid about 24,000 for work comp and the invoice this year is just a shade over 14,000. So we're realizing savings in that. And the league they go through their actuarial valuations and um so it's good to see that that went down. Miscellaneous general this got dropped down. We might this might need to be adjusted a little bit. I want to see how his expenses come in more on that. That's why I oranged it as a potential otherwise dues and subscriptions and stays about the same transfers. This is the EDA transfer transfer that was allocated prior. Council wages, not much changes there. That stays pretty from year to year. That usually stays pretty darn static. Administration, this is where you have employer paid health. This is where your health insurance comes out of when we're talking those types of expenses. So, in general, you'll see that there are changes on this end of things. I don't highlight this in yellow because those change every year. And I have a spreadsheet that I put everything into people's steps, insuranceances, everything. FICA, Medicare, PAR expenses, payroll, taxes, the whole nine yards. And then it spits out the splits for me so I can insert them right into the into the uh departments themselves. So, I don't call those out specifically. I just say as a whole those numbers are going to shift based upon what the contracts stated they would be. Um so so why this is in orange is in a couple months should get the updated health insurance information from the union and from health partners. I think I have health partners but that's just for me. So but the big one that's a driver in this would be union insurance. I always assume a 10% increase roughly and then once I get the numbers adjust accordingly. Usually it's less than that, but it's expenditures, so I like to be on the higher side. Then we can draw down rather than having to go, "Whoops, where do we find money >> for balancing out employee withholdings? Um, this one because we have the Minnesota uh Minnesota Paid Leave Act going into effect starting 2026. That's where we're going to have to contribute the way the law is written. whatever the state sets which I think it's a 0.88% 88% is what they're currently landing on for the paid leave act. That's split 5050 between employee and employer. So once and so I may adjust this slightly. I think the total outlay for the city it's 3 to 4,000 as a city as a whole for that on a yearly basis but we still want to wait for final finality from the state to make sure we're calculating correctly. So that's why I have that in Orange. Training and instruction, just have that going of $500 as costs have slightly risen for the conferences we attend and things of that nature. Just to keep up on that for elections, this one jumps back up uh because it's an every other year type of thing. This is when we have elections. This is when we don't. Here's when we're going to have elections is it's um this uh Yeah. So this represents another election year in that. So budgeting for that to make sure we're prepared. Assessment services, I haven't gotten the new assessment contract back from them yet, but based upon what changes have been historically anticipating an increase here and then once we get the actual dial it in at that point. Uh professional services, this is John's services as we've had had more activity going on. um bumping that up a little bit to coincide with the additional activity we've been seeing. Uh no changes on the computer end of things. So this is software support. This is Microsoft Office, Outlook things, the other software programs that we have subscriptions to on that. And then if we have any firewalls, hardware equipment that we replace on that, which is usually pretty minimal for the community center uh for professional services. So this is a range of the stuff that happens out there. Kearator cleaning, general cleaning for events and uh from services uh having Jamie come in and do bug spraying things of that nature. So depending on how many events we have, we're getting more and more. So if we've had more community center rentals, we're going to have more cleanings involved. So just making sure we're budging for that. Electric utilities, as we've been having more events, we've been having more electricity get used a bit more. So we're just keeping an eye on that. And that so this is for city hall as a whole as well and electric being what it is. Excel doesn't ever decrease rates or keep them the same. They always go after at least 3 to 6% increases and the PUC usually gives it to them. Gas utilities have stayed pretty darn steady though, so I'm not concerned there. Maintenance and repair should be pretty good. Police contract. I do have this one for next year. So this is the proposed increase for our current contract. So, it's going to go up about $5,000 and that's been that's direct from the county on fire uh fire protection. This is where we have a lot of the vacasillation, but in the wages end of things because we implemented the new wages for the and the changes in the fire department. You see a lot of changes in here. Uh first one is on the wages and that affects uh withholdings as those change. Um the pension expense, this is the this was what we were paying to PAR, but we will be paying it off here shortly. Uh PAR will actually have their final report to me at the end of this month. So few days I should get that. That'll finalize the amount that we cut the check for that we agreed to hand them over to clear this all up. So I'll get that, but that wipes that off. Um training and instruction says we've had more added expense in this. just the cost of it has gone up in general and if we get any new firefighters in just making sure we're covered for that. Motor fuels went down slightly uh just because we've never used the whole amount. So that'll carry that. Uh we're looking at updating what we do as far as f physicals and medical screenings for the fire department. Um Andy is proposing we move to annual physicals, cancer screenings, SCBA mass fit tests on an annual basis. just more that we're seeing the other surrounding departments do and we're keeping up with that. With that comes more cost. Um but I'm hoping on this there we I'm investigating some grant programs that may come in to help with that additional cost on the state and federal level. Telephone because we've regraded some of the lines we upgraded. Oddly enough, uh, we were looking at this, our 4G devices that we had at the fire department were more expensive to have than switching to 5G devices, almost twice as expensive. So, we we had free upgrades on a lot of stuff. So, we switched over to 5G devices, which cut our cost on the telephone end of things. So, just it's not a ton, but again, keeping an eye on mind the pennies and the dollars take care of themselves. uh general insurance again the league we saw a big drop on the workman's cop comp when it came to fire department and what the rates were getting charged for that so that dropped quite a bit repairs and maintenance uh we're just having more of those and the expense of those has gone up so looking to increase that to keep up miscellaneous uh general looking at the insurance uh for Vulmer's and uh I don't think that's I got to double check that number. I'm going to double check that number why it's going down rather than up. I had a reason, but I'll double check. Uh, and then, uh, dues and subscriptions. Uh, we've reallocated some of the stuff from one of these budgets down into here to account for dues and subscriptions to be more accurate in our accounting of it. Excuse me. So, proposing that increase to keep up with that. So overall, your offset, you had about 35 with everything in here. Your big offset for 35 here translates to about 34 there. So it's about even on the whole if you don't include the pension pension expense on that. Building inspection, I've dialed that in a bit more, did more research. So, uh, comparing our building permit revenues versus our expenses with Metro West, it's about actually it's, uh, just about 30 cents per permit dollar that we take in. So, if we plan for 60 30 cents puts it puts us at 18. That's been pretty consistent with what we've got. So, that dials it in a bit closer. Civil defense, um, was running about 5600. So, bumping that up if we have anything extra going on. Some years we do do and it gets closer to 8 900. Some years it stays okay and it's only at that 5600. But it's been going back and forth in years down to uh highway streets and roads. Uh street sweeping got a little bit more expensive. So we bumped that from 7500 to 8,000. Otherwise, a lot of that stays pretty darn consistent. Again, insurance dropped down. This was another one that dropped down significantly with the work comp end of things. So, we saw good savings there. Repairs and maintenance, we just haven't had as much in this category. We haven't really hit the 18. So, dropping that down to where it has been. We're not anticipating any above this. Yeah. Salt and sand. Uh, this one again fluctuates with the season. If you have a bad winter, the year before, you'll end up using more the year after as you order more salt and sand. So try just try to play those averages on the salt and sand street lighting. Um, as we've been tracking expenses for 2025, I thought there was going to be a bigger increase based upon what I was tracking, but it really hasn't materialized. So it's really closer to that 34 we saw in 2024. So dropping it back down based upon the electric bills that we've been seeing. Even with a cost increase to um Excel, we won't hit 34,000 this year. as I'm looking. Building maintenance building. This is the public works building. Uh 40 uh 43700. This is public works building. Um electric utilities are where it should be. Gas utilities. We had bumped it up because we thought with the addition we might see a little bit more, but it's held pretty darn steady on the whole thing. So bringing it back down to where we're seeing the natural gas bills really come at in at maintenance and repairs uh to the building. just adding a little bit more in there as the guys do more in the shop uh to get that fitted in. So, a wash on the whole thing. Parks and wreck. The only change we had uh added this category uh as a code item, chemicals and chemical products. We see this on the water and wastewater end of things, but adding it here under parks for the splash pad. Why that? Because right here, since we didn't have this category, I jammed everything under electric utilities. >> So there you can see it's 9,000. So thought it would be open in 24, it wasn't. Ended up being as this was like 500 bucks, a thousand in previous budgets. So this is where I was loading up splash pad expenditures. So with that, as we see the electric costs coming in where I think they will along with chemical costs, it rounds out to be about roughly 9,000 that we're seeing. Although with the splash pad, we are using more chemicals and more water than we think. So we're going to have CRS come back and clean that up in the fall. Good. We're using more than we should and they need to fix that. Otherwise, insurance again seeing that drop as we go forward there. And then last in the general fund on the compost. >> So just staying in there repairs and maintenance. Do we add do we need to add more for the splash pad? >> No. >> Or any >> I don't think we do because I can tell you right now >> is it under >> this is coming in under 125. >> Okay. >> I think we're sitting at about seven grand right now and what comes out of here is mini biffs. >> Okay. >> Blade sharpenings, things like that. So I think for this year we're going to come in under that. But with the 125 here, what I'm seeing the other part in this is that this is also where the lawn care maintenance comes from for spraying. >> Yeah. >> So we had 24, we didn't spray and it carried over into 25. Now we've gone back to spraying. And there was a miscommunication with us as staff about what that really meant because I was looking like, "Oh, we're not spraying anymore." Long story short, we're back to spraying because we ought to be and we cleared that up. So, this 125 handles spraying and then it also has >> and I'm fine then if we don't need to add for splash pad. Uh how about with our uh the increase we're seeing in vandalism if we're not getting reimbured. Do we need to add something in to be fixing doors or you know on the on the concession stand or things? We're seeing quite an uptick >> now. Unless we're, you know, they're finding out and we're getting reimbursed, then I'm fine. But >> we have seen an uptick, but we have one data point and I don't want to jack up a budget on one data point. >> Fair. Just so we Okay. >> But if we're seeing consistent Well, we've got to solve some bigger problems there. >> Well, yeah, >> but >> Okay. >> Yeah. >> My only two I had on I want to get a few more data points on there. >> Fair enough. >> See where that's really trending. >> And then down to compost employee withholdings just to make sure those keep up uh with those expense in the professional services. Uh so this goes up because as we saw with the county grants, those go up. So this is part of that as well. So this is offset by county grants up top. So that's where we see down here. We're currently looking at $7,661 revenues over expenditures. And as over we get throughout the year, we'll make sure this tweaks and get it balanced by the end of the year. >> But I want to make sure we're we get to this first number. I know this one in conjunction with this figure. Ultimately, that's where we have to set it at September. We can go down, but we can't go up, >> right? So that's where I'll be hitting that uh water fund. very briefly um since water uh utilities I don't want to go into too much hard detail on because those will get carried in the later months but looking at just the brief changes here interest earnings going slightly down on that uh for the water fund just to match because we've had some expenditures out of there that drew that down a bit especially with this year we had the $70,000 uh loss because of the water usage was down so the fund balance took a little bit of a hit which means we had a little bit less interest income here. Uh, we've been seeing more than far more. I had it at three, but I adjusted it to four houses built since we've been seeing more than that. Just a preliminary figure. And then on the debt service end of thing, I when it comes to debt service, I've adjusted that so I don't call that out specifically. Little change in repairs and maintenance in the water tower. We're seeing a few more expenses there. When we get down to the water distribution system itself, uh samples, those costs have been going up because Department of Health wants more done. So, when we have to do it, telephone, uh that went down, but we're getting that back adjusted where it needs to be with the cost split of things there. Uh and has been what we're looking at here. We've been running a cost de we've been running a deficit in the water fund, but that's planned. the plan deficit because we know as we talked about in 2020 26 is the last of that bond that one bond which is the major bond. We'll still have one left which is smaller but then in 27 we can do rate adjustments because we'll likely be seeing wastewater treatment facility project coming on knock on woodfill so we get that point source implementation grant funding and we can get kicking on that. So that's when we'll adjust uh the rates. So 27 and beyond will be back in the black again for sure. But we didn't want to cause rate fluctuation instability as we work this whole thing out. And the water fund has plenty of funds in it that it can survive this little nuance here. On the sewer fund end of things, a lot stays the same upping the sewer use charge. This is far more consistent in its revenues than the water fund. water fund you rely upon irrigation use to an extent. This you do not. Uh we know at sewer use charges it's pretty darn consistent and so seeing 560 with houses being built over the years I feel this would even again my revenues are always slightly lower than I think they will be charging for four uh changing for four houses here for the sack fee as well. debt has fallen off as we've uh talked about last year. Biosaws disposal. This uh we're about at three dumps here. We're doing two two sometimes three in a year. So, but uh with increased water or increased houses, increase sew usage, I'm just going to put that at three. Uh going forward, a lot of this waiting for more data on as I take a look at a training instruction that went up a little bit. software support uh with our SCADA systems are getting more involved on something having those tied more in and then insurance in general drops a little bit. So on here you could see because we were this was planned deficit because the general fund was contributing money over and as we were sliding it over on that when the debt fell off now we're waiting we're garnering this revenues over expenditure holding rates steady until the new debt comes on for the wastewater treatment facility that's when we do the whole switch to keep rates fairly stable. [Music] And to round her out, storm sewer stays pretty much the same except we won't be sonaring the pond. So that goes away. That's really what we're looking at there. Otherwise, this this will likely be the budget >> just because there's this is very easy. And then EDA is very in and out. There's the 50 that gets transferred. These expenses stay pretty much the same with the bulk of the 50 go towards uh grants going out budgeted. So with that, that's our first look at the general fund budget. Questions, comments, observations, going 10 minutes over. >> No questions. It looks good. I mean, we're dialed in for us to be at the end of July and we're dialed in this far. I think we've uh you got a great start to it. So few things to tweak. >> Yep. As time goes on, I'll provide tweak updates. In future ones, we'll talk about CIP and overall where we want the vision of Levy to be at and go. And >> yeah, >> I think we're in a good spot. >> Very nice. >> Looks good. >> That's all I have. >> Yeah, it's a good start. >> Any other questions? >> Thank you. I appreciate it. Then we will adjourn. Thanks for coming up, Phil.