[clears throat] Stand for the pledge of allegiance. I >> aliance 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 and welcome. to our December 2nd, 2005 board meeting. Uh we'll take this time to uh take any public comments on items that are not on the agenda. Yes, sir. And please state your name and where you live. >> Great. I'm Max Forester. Uh I am the labor representative for ASME Council 65. We represent uh workers in Carver County Health and Human Services and public works. There's a courthouse general unit as well uh as well as the assistant county attorneys. Um I work out of St. Paul uh at 3335 West St. Germaine Street in uh St. Cloud area code 56 uh 301. So, the union was uh notified in late November that at today's meeting, the board is [snorts] reviewing a recommendation to eliminate vacant custodian positions, which means the partial outsourcing of custodial services to a private corporation. Most likely Carver would be looking at citywide. And while no filled positions are affected, uh it's concerning the direction that it looks like the arrow is pointing here, which would be saving money in a budget by replacing a good county job with a minimum wage employee willing to work for next to zero benefits. So, I don't know. I've I've spoken at a lot of board meetings like this uh in my career and I think it's not unusual for board members to see a union rep and know that it's a union rep's job to advocate for union jobs. So, I conducted a survey of workers here in the county to actually hear their voices. And I wanted to put some of their voices before you, people who work for Harvard County in different bargaining units, uh, to hear their concerns. And frankly, it was stunning in its precise diagnosis of the consequences of subcontracting custodial work. Um, people talked about acknowledging the short-term cost savings, but they also stressed significant drawbacks concerning uh quality, local impact, and security. And I just wanted to give you their words. So, regarding a lack of quality and commitment, we heard subcontracted staff may lack the long-term commitment and institutional loyalty of dedicated county employees. The primary focus of a subcontracting firm is maximizing profit, which can lead to corner cutting and a decline in the quality of service. Further, when staff are not actual county employees, it is often more difficult to enforce quality standards and ensure consistent performance as the county's control is indirect through the service agreement rather than direct, which is through the management infrastructure. Uh, number two here was security and training requirements. Areas like the jail and the courts require specialized security clearances and training. Think along the lines of the criminal justice information services training that many subcontractors may not have. They may not maintain consistently. They may just send a minimum wage employee who just got the job to uh find themselves in a secure area. This poses a significant security risk. There is the issue of high staff turnover. So subcontracting often leads to turnstyle staffing. This means that good staff from these companies often quickly move on to permanent, better compensated positions, leaving the county with lesser quality workmanship and a constant influx of new, unproven personnel. There is the taxpayer perspective that we heard from members where as a taxpayer and again many of the people who work for Carver County wind up living here. It is frustrating to see the county take a short-sighted approach to prioritizing temporary cost reductions over the long-term committed way of maintaining quality public services and stable, secure facilities. Taxpayers are entitled to clean, safe facilities. The last item that they mentioned was economic and local impact. Again, their words, not mine. Subcontractors are not likely to hire locally, which means that the wages paid do not circulate back into the local economy through staff spending. This undermines potential economic benefits for county residents who pay the taxes. And that's when I have this kind of conversation with county boards. That's the sort of thing that I find myself saying a lot. So Carver County, when you hire locally and when you pay a fair living wage, that means workers will spend their earnings in Carver County. They may buy a home here. They tend to take pride in their jobs and the communities that they serve. So on and so on. Using a private contractor headquartered elsewhere that pays minimum wage. I mean, I've tried to buy a sandwich on Chestnut. It's you could work an hour at minimum wage and not be able to afford a sandwich. Just think about is that what we want to be here? If the board approves this reduction in force, the union has a meeting scheduled this week to discuss the impact on remaining custodial staff. We, myself and the people in green shirts here uh who care enough about the issue to take an hour of PTO on short notice ask you to not approve this measure. Of all of the ways available to a board to cut costs, a workforce reduction is the most harmful for the remaining employees and for the community that you answer to. >> Thank you. >> Thank you. >> Okay. Anybody else? Anybody else? Public comments. All right. Hearing none. Uh let's get a motion for the agenda review and adoption. >> Move approval. Mr. Chair. >> Second. >> I have a motion by Lynch and a second by Fehee to approve the agenda. Any discussion hearing? None. All those in favor say I. >> Those [clears throat] opposed? Motion passes. Can I get a motion to approve the November 18th, 2025 minutes and the November 25th, 2025 budget and levy minutes. And I hear moving that motion and Anderson second it. >> Actually, since I wasn't here for the levy, I' um I'd like to not second it. >> Okay, I'll second it, sir. >> I have a second by Lynch, a motion by Uterman. Any discussion other than that? Hearing none. All those in favor say I. I. >> Those opposed. Motion passes. >> Community announcements. >> Commissioner Anderson. >> All right. >> What's new? >> Let's start it off at the back of the table, the end of the table. All right. So, thank you. Um, couple things I wanted to to share with you. One is I had an opportunity week before Thanksgiving to talk with um, sixth graders at St. Hubert's Ca Catholic School in conjunction with Chan City Council member Josh Kimber. So, we had an opportunity to talk with those students and um talk about why they should pay more attention to their local government because local government has the greatest impact on their daily quality of life. And um and Josh and I were able to talk a little bit about what roles the city plays and what roles the county plays and and how we work together. So that was a great um that was a great afternoon of fun for those sixth graders. And then also the Friday before Thanksgiving um the planning for the Chesca Libraries officially started. We did a bit of a library tour. Um, thank you to Jodie Edstrom who planned that tour. and we got to see um three libraries in Henipin County, one in Ramsey and one in En in Noa and invited the mayor of Chaza and Matt Podaski and several other city staff to really kind of look through um to look at what that library can look like and um and really think about how we're going to plan for that because the the sooner we start planning for that um the better off we will be. And so I'm encouraged by the great partnership that we'll have with Chaza and um in planning that library. And I just did want to announce a couple of upcoming events. One is um Chaza had its official Christmas lighting ceremony before Thanksgiving. Chan Hassan is having some carolling at Market Square um that I'm hoping my voice is good enough for. And um and then their tree lighting is uh Saturday on the the 6th at 5:00 p.m. And then um bring your kids to Hackamore Brewing for I know for breakfast with Santa. Nothing says familyfriendly like breakfast with at at a brewery. Um but anyway, um they will uh get to pet llamas because apparently the reindeer are sick. But that's okay. And um and they can get their their picture with Santa and yours truly as Mrs. Claus. So that that gives me my grandma fix for the year. Um so those are some of the things coming up. >> And we learned earlier your son is doing really well. >> Yes. Yes. >> In the uh >> Yeah. So I'll be traveling later this week for um my son's graduation, military graduation. So I'm >> Ranger >> Ranger graduation Ranger school. Yeah. So I'm pretty >> humble today and and this group up here has heard all about it. God bless them for going through my anxiety. So >> congratulations. >> Thank you, >> Commissioner Udman. >> Well, Mr. chair. We're coming off of Thanksgiving and had a chance to talk to a lot of staff and somebody gave me a podcast to listen to and the gist of it was um maybe we should go from Thanksgiving to Thanksgiving and I'm not always the one that slows down to say thank you, but a couple thank yous today. Had a chance to be on the first minimal snow in the county um in a plow truck. I try and do that once a year. I'm thankful for the staff that goes out there and does that stuff. Um I know that there's a lot of buzz in the media around CDL licenses and whatnot, but some of these plow guys, this guy was up at 1:00 in the morning to get in the truck at 2. I know there's bus drivers across um the county that are doing a lot of great things and I know our staff does a great job as well. So thankful for those folks. Um had a chance to be at St. John's on Thanksgiving Day. So call out to St. John's and their work with Mikasa and other not forprofits. Love Inc. um Better Society um uh I always forget a few of them along the way. But there's a lot of organizations that fed a lot of people that were in need. And we also recognize that those food it's not just food needs, it's connection needs. some of the folks are pretty lonely in the around the holidays and and to see somebody in connection with folks as you deliver those meals um was important. Um also wanted to say thank you to the te the team that puts on the 100 club in Chesa every year. Um Commissioner Anderson, myself, others were there. Um and the the goal of that group was to pay for Christmas lights. So a lot of the folks in the community don't really know this, but a number of years ago people said, "Why are you putting up um nativities in our city? Why are we using tax dollars to do that. So, a group came together and said where they're going to fund those Christmas lights and so you'll see those lights around town and it's funded through the 100 club. People make a donation every year. Um there's 100 tickets that are sold. Um there's a nice night and a short reception. Then it it spills over to the tree lighting which is beautiful. Always always use this as an opportunity to call out the Lensen family. The beautiful big Christmas tree that's in downtown Chaz was paid for by the generosity of John Lensen and his family. And sometimes that gets lost after we put that up year over year. Um, also shifting gears a little bit, I've had chance to have a conversation with a lot of people on a um on a more sensitive level. I've seen a lot of people's property taxes. I've been observing a number of business closures. Sharon Brewery will go away after seven years. Um, and Tazzle in downtown Victoria is another one. And it seems like this time of year, you see a lot of people close their doors. Um, uh, and I know we're going to be making some big decisions uh, today um, for what types of taxes we're going to pass along to these businesses and individuals. [clears throat] And so it's not lost on me at this time of year. People are are looking at some of their pennies. Even though it looks like Black Friday was a success on the retail side of things, other people are living in the margins. And then um had a chance to be uh tour the Chanhassi Civic Center. I know that we're going to make big decisions too about um what the future of this campus looks like, the 600 building, the 602, and then that domino effects to all the other buildings as well. And uh got some timeline for the Chanhass and they um they engaged the architect in May of 23. groundbreaking was June of 2024 and a handful of months ago they opened. It's beautiful building. If you haven't been there, you should take a look at it. Um and uh and I think they did that quickly and responsibly. Um but it comes at a cost when you change things. Nobody wants to spend those dollars. Um uh but sometimes they need to do so to see a bigger vision. And so those are my comments for this morning. Thank you. >> Thank you, Commissioner Fee. >> Mr. Chair, thank you. [clears throat] We had part uh participated at the mayor's lunchon a few weeks ago and they talked about a new industrial park uh just outside of excuse [clears throat] me just outside of Chesca and within parts of Delgrren Township and it's approximately 359 acres on 17 parcels. So, I reached out to Elise at the city of Chesca just for more information because I was just interested. And the areas uh generally bounded to the north by Creek Road, uh to the west by Jonathan Carver Parkway and then to the south by Chaza Boulevard and then to the east by uh Highway 212. And currently it's an alternative urban areawwide review which is being conducted to study potential impacts of multiple business park development scenarios. So the infrastructures in place with uh state highway 212 and then county road 11 and then uh the county uh road Jonathan Carver Parkway and then the various city roads. So, it's just exciting to see this economic development within a planned expansion, >> you know, connecting to an existing established infrastructure. So, more to come there. Um, also on [clears throat] the community side, Carver on the Minnesota, Inc. will once again host Carver's 9th annual gazebo tree lighting ceremony on this Saturday, the 6th. It's a special fundraiser. that's dedicated to advancing the organization's Carver stories. Uh family activities will be held at the gazebo park from 3 to 6. Uh live music, s'mores over a campfire. They have free horsedrawn wagon rides and that's in downtown Carver at 4:00. And then also another Christmas activity, it's Christmas in Cologne, which is on Saturday, December 13th with uh the future event is Light Up the Night. It's a holiday cruise led by Santa. Get your vehicle or your side by side ready. It's a a great opportunity to decorate their side by side or other fun vehicles and then join Santa as he travels through town spreading holiday cheer. Check-in begins at 4:30. And then there's other activities going on that day in Cologne with pancake breakfast, visit Santa, and you can get various gift bags and holiday treats. And that's all I have. Mr. Sure. >> Would uh Commissioner Fay, would my Jeep can be considered a side by side? >> It would fit right in. >> Would I want to flip the top off? >> Put some Christmas lights on it. >> Sounds like a lot of fun. >> Cologne. What day? >> 13th. >> My uh wedding anniversary is awfully near that date. So maybe that's uh that's the big plan for uh [cough] [laughter] I'm in trouble. All right, Commissioner Lynch. >> Yeah, you have to have a willing participant to go along with that. Um anyway, um we had a safe, wonderful harvest. It went uh went very well and it we were in fall and now it seems how quick it really changes. Uh uh just a little over a week ago, we were outside on the patio. It was over 50° and we had dinner out there. It was wonderful. Um, but now I just drove by a little over a week. I drove past Lake Wakonia this morning. It's froze over. Don't go on it. It's not safe, but it is froze over. Um, it's just how now we have uh Scott from the Southwest Trail Association, the Snowmobile Group. We're talking about that today. They do a lot of wonderful work and uh it's uh great to hear from him. And um I was in invited for carolling. I'd like to say that I'm banned from caroling. >> Oh, what'd you do? >> Um, well, various things. Um, and also thing that if you don't tell the kids the llamas, just tell them they're reindeer. Put some antlers on them, tape them. They'll never know. >> We We'll give it a shot. Yeah, we will. >> Anyway, that's all I have. Mr. Chair, >> Vatican 2 uh banned [snorts] me from singing in church. So, [laughter] uh, it does feel like a a real winter. I like it. If it's going to be winter, bring us snow and everything else. And I I I really [clears throat] like that. But speaking of snow, boy, it snowed on Saturday during the Gopher game. And uh, always got a little anxiety for that Gopher game with Wisconsin. And, uh, what a treat. So, sorry to the Wisconsin fans. I know there's a lot of them. uh a lot of them in this area. But uh what a fun game and the Gophers did well. They won seven games at home, lost all their away games. >> Maybe they'll go to a warm bowl game. Uh and I hope to be there. So maybe that's the anniversary. >> That's a better Maybe a better >> go Gophers. And uh nice way to end the regular season. So all right. All right. The consent agenda. Do I have a motion? >> So moved. >> Second. I got a motion by Anderson and a second by Fehee to approve the consent agenda. Any other discussion? >> Mr. Chairman, [clears throat] >> on 2.4 is something that you've kept your eyes on. I have as well. Highway 11's been a pretty significant interruption for some of the folks in the corner by that Dairy Queen. Um, I just want to keep eyes on the pennies because I know it's tight and we have some staff in the room and whatnot, but um, we're gonna we're going to pass this because we need to we need to get that road done and the money paid, but I think we should keep an eye on that contractor. Um, I think that there was some avoidable things that we're going to shoulder the burden of those costs. And I think that people need to know we're keeping our eyes on some of these um, contractors and contracts because every dollar that we shift into that world is a dollar that we don't shift into other things that we can maybe do. And so I just wanted to be on record as saying let's keep an eye on that contractor because um there's a few um there's a few contracts that tied to that that seem to be running over and uh could have been avoidable interruptions for the convenience of our constituents. Thank you. >> Uh well said. Um I know Lyndon's in the room. Uh that project is going to remain closed over the weekend if he can nod. No. Yes. I think it or the the winter seems the city project is going to keep that closed. No. Okay. >> It won't. Okay. The road will County Road 11 by the Dairy Queen will full access everywhere. Okay. Because next year it's going to close again for the roundabout on Highway 5 and County Road 11 by the Dairy Queen. So, [snorts] but yes, let's keep an eye on that. That has not been a fun project. It's what happens when you rebuild a road on a swamp. Yes, it is. >> Okay. I think I have a motion and a second for the consent agenda and hearing no other discussion. All those in favor say I. >> Those opposed. Motion passes. >> All right. Item 3.1, health incentive program update and recommendations. I asked Danielle if we were going to see her next week also at the meeting. She enjoys coming here to talk to us. >> I do. I very much do. Great to see you all. Thank you for having me again. I'm Danielle Griezmer. I am the occupational health and safety manager in employee relations. I'm here today to continue our discussion on [snorts] the health incentive program which we began on November 18th at the November 18th meeting. The county adopted the health incentive program in 2012. It's a voluntary wellness program that promotes preventive care, knowing your biometric measures such as blood sugar and cholesterol levels, and having a relationship with a primary health care provider and dental provider. Since the program's adoption in 2012 and for 14 years, um the incentive amount has remained $100. The health incentive program is an important initiative that supports and aligns with the county's overall total worker health and healthy workforce goals, which you can see outlined on this slide. At the November 18th meeting, we discussed the current and proposed program components. Since we covered this information in detail on November 18th, I won't spend any more time on the details of the general health incentive program administration and components and I'll get right into the budget and return on investment discussion that we planned for today. So to begin here, you can see the number of health incentive program participants over the last five years alongside the total dollar amount the county paid out in health incentive payments. The county grosses up and pays taxes on this taxable benefit. So the amount the employee takes home is actually $100 even. With the current program structure and participation levels, our total payout amounts have been around $12,000, which is $6,000 below the total health incentive program budget of $18,000. In response to a November 18th board member question, of the 117 participants in 2025's health incentive program so far, 105 of them are on the county's medical plan and 12 are not, indicating that a significantly larger percentage of health incentive program participants are health partners member employees, not non-member employees. It [snorts] was noted during our last discussion that a that spouses and dependents make up a notable portion of the county's health insurance group yet are not eligible for the county's health incentive program. In the future, the county board could consider further expanding program eligibility to member spouses to include a higher percentage of our total medical plan member population. However, employee relations is not recommending an expansion at this time to non-employees, primarily in consideration of budget constraints. I did reach out to our health insurance broker, Gallagher, since they have a substantial public sector book of business, and I learned that they do not have any public sector clients who could who provide wellness incentives for spouses. Um, additionally, consideration of this type of expansion would require further research. It would raise a number of new technology, logistics, legal, and data issues that would have to be vetted. So, just making note of that. [snorts] Our health incentive program budget amount is currently $18,000. And as you saw on the previous slide, we are typically spending around $12,000 in incentive payments. We would like to incentivize higher levels of employee participation and have made adjustments over the past several years such as reducing requirements for healthcare provider signatures. However, we believe more significant changes are needed to actually increase participation including increasing the incentive amount. based on the requested increased incentive amount from $100 to $200 and estimated participation rates increasing by 50 to 100% over last year's participation rates. Employee relations and finance recommend allocating a total of $68,000 to the health incentive program budget for 2026. Since this would be the first year testing a higher incentive and redesigned health incentive program, budgeting 68,000 would be um would be recommended to cover a range of potential increased participation levels from around a 50% increase up to potentially more than doubling the number of participants if there is more significant employee interest. The total recommended new health incentive program budget would include the current health incentive program budget of $18,000 plus $50,000 to equal a total new health incentive program budget of $68,000. Next, I will explain where the $50,000 is recommended to come from. I shared on November 18th that we have made program adjustments over the years and have lower wellness technology administration system costs than we used to. With the program design updates we've presented, we are also planning to eliminate certain program technology costs specifically related to the health risk assessment component and redesigning the program to no longer require these the separate technology system for tracking and program administration. With these adjustments, we capture approximately $9,000 in existing wellness budget funds separate from the existing health part health incentive program budget fund that could be used to restructure the program and its incentive. In addition, the county selected an equivalent more cost-effective private plan for the administration of Minnesota paid leave um rather than opting for the more costly state plan. and the county's self-funded dental plan renewal came in at 3% rather than 5% which was originally budgeted. This accounts for around $41,000 of savings that is also recommended to be reallocated to fund the increased health incentive amount. And the sources the sources and accounts I just discussed amount to $50,000 of reallocated existing funds. If participation exceeds the projected range, any additional costs would be covered using one-time funds from the remaining health partners credit budget, which could provide up to $47,000. And then ongoing funding would need to be incorporated into future budgets if higher participation levels were to continue. The primary goal of the proposed health incentive program incentive increase is to prompt and incentivize more employees to engage in the healthpromoting best practices and recommended actions that make up our health incentive program requirements. [snorts] We have calculated several projected estimates that account for a range of participation levels and especially for the initial year of an increased incentive and restructured program. Employee Relations and Finance recommend budgeting to account for the upper end of this projected cost range. This slide breaks down what the potential total payout would costs would be with various participation levels. If around 110 people were to participate in 2026, which is a similar number of participate of participants in 2024, the total payout amount would be approximately $34,000. With an increased incentive and program adjustments, we would be targeting around [snorts] 165 participants in 2026, which would be a 50% increase compared to the 2024 participation level. If we were to meet this target, total payout amount would be approximately $51,000. And if we were to double our 2024 participation in 2026 with around 220 participants, total payout amounts would be approximately $68,000. If participation exceeds double, we would use those one-time health partners credit uh budget funds to cover any unexpected costs. And while that is a source of one-time funds, it does give us a bit of a buffer to evaluate whether the increased incentive and program adjustments lead to increasing levels of employee participation. So, up to this point in today's presentation, I've provided key budget information and detailed numbers. For the remainder of my presentation, I will be discussing the potential for a return on this investment and the metrics that can be considered to measure the success of the program. One of the most applicable metrics and indicators of health incentive program influence and success is our medical plans preventive care benefit utilization and related Carver County group member completion of recommended preventive screenings. The aggregate numbers you see here came directly from health partners and highlight that Carver Countyy's preventive benefit preventive care benefit utilization has been consistently around a range of 67 to 80%. A goal would be to see these numbers increase corresponding to an achieved increase in health incentive program participation. The preventive care benefit includes all preventive care services including physicals, immunizations, and [laughter and clears throat] other preventive care. Engaging in preventive care is crucial for maintaining health, preventing disease, and supporting the early detection of potential health issues. CDC data indicates chronic diseases such as heart disease, cancer, and diabetes are the leading causes of death and disability in the United States. They are also leading drivers of the nation's $4.9 trillion in annual health care costs. Timely preventive care can prevent certain health risks or concerns from progressing to serious health issues and in other cases supports early detection and management of health conditions leading to lower overall costs and improved health outcomes. This slide shows Carver County's percentage of completed recommended preventive care cancer screenings in the chart on the left side compared with the health partners aggregate on the right side for the last 5 years. Our percentage of completed breast cancer screenings has ranged from 76.6% to 83.2%. We have work to do here as we were we were above aggregate from 2020 to 2022, but in 2023 and 2024 dipped below the health partners aggregate. Could an increased health incentive and other health incentive program adjustments we're considering push our breast cancer screening rates back up? Our percentage of completed colon cancer screenings has ranged from 64.5% to 72.8% 8% which have been consistently higher than health partners aggregate although have decreased overall these last five years. Could an increased health incentive and the other health incentive program adjustments we're considering push our colon cancer screening rates back up to the higher rates of 2020 through 2022. Our percentage of completed cervical cancer screenings has ranged from 65.4% to 72.8% 8% consistently higher than the health partners aggregate, but with room for improvement here as well. Attempting to get our most recent rate of 66.7% back up to closer to 72.8%, the percentage of completed cervical cancer screenings in 2020. Overall, participating in recommended health screenings to identify and treat health conditions earlier and in some cases prevent major health issues can lead to significant cost savings and better health outcomes. While we may not be able to extrapolate the exact budgetary impact, the board should weigh and consider the potential value of investing to incentivize and support employee participation and engagement in recommended preventive care and associated best practice personal health choices. Employee Relations is recommending a goal to maintain and ideally increase the number of preventive screenings completed by people on our medical insurance plan year-over-year. While no health incentive or workplace wellness program will ever completely solve our society's increasing work incident of chronic health conditions or its rising health care costs by providing easy screening opportunities, promoting the importance of preventive care and supporting other activities that can directly improve the health awareness, knowledge and behaviors and personal health choices of our employees. As part of a comprehensive wellness program, we are taking meaningful steps to support a culture of health that has a positive effect on our community. If the board approves using the Minnesota paid leave and dental savings to restructure the health incentive program, our total wellness budget amounts to an investment of about $120 total per employee, and supports a variety of whole person well-being opportunities that have the potential to make an impact on the health and well-being of individuals, contribute to positive workplace morale and engagement, and enhance the overall employee experience at Carver County. Additionally, this investment carries the potential to result in overall more favorable health insurance group experience and associated cost savings based on earlier identification, [clears throat] treatment, and/or prevention of advanced stage and chronic health conditions. So, this brings us again to the board actions I'm requesting today. At this time, I am requesting the motion listed on these on this slide, but I am now open for discussion and questions. Okay. Anybody have any questions? >> Commissioner Anderson. >> All right. Commissioner Workman, thank you so much, Danielle, for coming back and um and pro and providing the data that that that I really needed. Um first question is the second item here. U motion to delegate authority for employee relations to pursue MOAS with unions. What what what does that mean? >> [laughter] >> So, >> I may not be the best person to answer that question, but I'll do the best I can. Um, it basically allows unions to [clears throat] approve the ability for members to participate and have this opportunity. >> Okay. So, we do our step and then and then we work with the unions on that. Okay. I just >> wasn't clear on that and I should have asked that last week. Okay. So, thank you for that. And um and I and I appreciate you kind of putting this data together. And I do think this is hard to to figure out a return on investment and and something that maybe we can work on over the next year. Um I wish we didn't need to do something like this. I wish people would take their personal wellness and health more seriously and that we didn't have to incentivize people. Um, I found out at the tender age of 29 that I had chronic high blood pressure. Not something that was part of my family. I'm not part of my family history. and um and my work colleagues were the ones that realized that um I was nearly having a stroke and they I was behaving odder than usual and um they took me to the emergency room and that's how I was identified as that. Um high blood pressure is truly the silent killer. And so I really want to encourage people to even if you have a healthy lifestyle to take these screenings very very seriously because you just you just never know. Um so I so I do wish that this was something we we didn't have to do and quite frankly it it it we may not be able to afford to do it after this year. So um take advantage. Um, the other thing that I do like about this is this is putting money into the pockets of our employees and hopefully the system is a little easier to administer and that and and that they can they can do this. Um, but I do again want to thank you for putting these numbers together. Um, we're at a time as Commissioner Udman said, we we have to look at our pennies. We have to look at every dollar. we have to make very difficult decisions and um and hopefully this is a program we can continue to have in years to come. Uh I I support this for next year and um and and and I thank you for for the work you're doing. The other thought that I had is well this is very important for the medical side of things. I would challenge you to to think about some other ways we can expand the wellness program. Um, Commissioner Udman talked about gratitude and thankfulness and and from a mental health standpoint, that's literally the number one indicator of a strong mental health is is to be grateful and to say thank you. And so um so so perhaps there's there's a way we can expand our wellness program as well. So, so [clears throat] again, thank you for putting this together. Thank you for all the work you do and um and I look forward to hearing more on kind of how either cost benefit or how we can figure out the ROI in future years. >> Thank you, Commissioner >> Commissioner Anderson or Commissioner Udman. >> Mr. Chair, I move approval. >> Okay, I got a motion on the item. Do I have a second? >> I second. I have a motion by Uterman and a second by Anderson on this motion on items one and two. I have a quick question. Um we had the split screen of county results and health partners. Where where does that come from? Does health partners put those together in aggregate over all their clients? >> Yes. >> And they sift out us here at Carver County. >> Yes. So as you on the screen here on the left side, Carver County group member data is on the left side and then all of the health partners um businesses they work with would be this right sided data. >> Okay. Secondly, um for me this program I always get a little confused about when it starts and ends. I'm assuming it's a calendar year. So, um, so to qualify for the $100 this year, you got to be done by December 31st. Our deadline is actually December 1st, just because that way people can get their forms in and we can then get the payment out on the last paycheck. We do give a little leeway when we can if someone has a December 5th appointment or we we do string it out as long as we can. But yes, you are correct that it's a calendar year. So starting January 1st through really dece mid December we uh have our our deadline and then people can turn in their form. Okay rush at the end of >> sort of always you know when is my I have a dental appointment every six months but it doesn't you know what do what do I have done? How do I get it done? And so I'll I'll work harder on that calendar. So >> and we're happy to help. Whatever you need we can definitely walk you through the steps. >> Okay. [cough and clears throat] All right. I got a second and a motion. I got a se a motion and a second to increase annual health incentive program incentive amount from 100 to 200 and to take effect in 2026 for eligible non-bargaining employees and eligible represented employees of participating bargain units. And we're going to delegate authority for employee relations to pursue MOAS with union bargaining units interested in participating in the increased incentive. Hearing no >> commissioner discussion. >> Yes. >> Okay. Uh we asked you to do two things and you did them. We made it easier for staff to participate and we're going to increase the participation seemingly with the increased benefit. It cost us a lot for that one incremental person because we know that there's going to be a base of people whether it was 50 bucks or 100 bucks or 200 bucks are going to participate. So, I think it's on staff to promote this. I don't think that we can, you know, on Tuesdays can promote it more so than the than the staff. And so, uh, we did this so that it works. And I hope that we exceed um the dollar amounts. And I think that the ROI comes down to simply one early detection can pay for the entire program and more. Um, I think if we look at this as an expense, it's different than if we look at it as an investment. And I think this is an investment. And so if I just look at the last couple years, record or near record um uh increases for staff on the wage side in the last two years, this is a move in the right direction because we heard from our staff that they wanted to do so. We know there's some people that are not interested in sharing their personal information. So we've figured out ways around that. Um and we're going to increase the budget three times. I mean, that's that's significant in in a world that says, "Wait a minute, let's just be miserly and let's look the other way and let's just hope things change." You've looked at the data. We see the data. I would uh encourage that our goal for the next year to be north of what the health partners is and then even more the next year next year. Um I know other areas um are looking at making this an even richer one. So as we monitor that ROI um if the ROI makes sense, there's no reason we wouldn't pay even more to do so because ultimately the maximum that what we're trying to do is lower our associated cost with healthcare, lower our rates, and then we can take those dollars and reinvest in our employees someplace else. So the goal is is is more participation. I also think that as we expand um our participants u my understanding is is that our our catastrophic claims disproportionately shift towards people that are unable unable to participate in this meaning people that are dependent and I don't know what the average age is when they start participating 15 16 18 whatever it is but I would still push for expansion of this for people that are covered on our insurance so that we can see the benefit of it um because our catastrophic claims are the ones that are keeping us from having lower rates as you know um and if we can bring those down most of those are coming from non um non-emp employees. And so I think we need to expand this to include um the the dependents that are on our insurance so we can get even more bang for our buck. But um I'm in support of it. Thanks for all your work doing so. Enthusiastically support it. Thanks. >> Thank you, Commissioner. >> Yeah. Thank you, Danielle. All right. I got a motion, a second. All those in favor say I. I. >> Those opposed. Motion passes. See you next week. >> Thank you. All right. 3.2 Administrators recommended Carver County 2026 levy and budget. I I emphasize the first word administers administrators uh possessive there. Uh it's still his budget. >> Yes, sir. Mr. Chair, it is not for long. Uh I'll hand it over. Ask you to approve it today. Of course, that's the decision I'll be asking for today. Speaking of staff coming back, here I am again. Uh last step in the long lengthy process and as I look over, you know, decades of doing these budget cycles, uh this one has been different. I would say more challenging and uh a bigger spotlight on the topic of unfunded mandates and cost shifts. If you and if you think about that issue, that's really the heart of this budget. uh the concern that's that's uh we've been working trying to work around to some degree but it really does relate to many of the difficult decisions that are part of it part of the package and I'd like to thank you for that the various input the patience the direction along the way if you recall we added a one big new element right out of the shoot we took a look at uh the list of the services that we provide and let's not forget that's what the nature of our businesses is uh that's the taxpayer value and I'll go over a little bit of that uh back in April a lot of lot of additional staff effort and that was well well worth it. It highlighted illustrated that just about you know 80% plus of what we do we have to do it and we focused then on the discretion and then everything in between. Uh but if as you think about that, you know, counties were created, I think back 1849, I think is the year unfunded mandates, cost shift, it's been going on since then, right? So it's not really new, but it it does it does seem like sort of unchartered new territory. The the degree, the severity, uh the shifting of the actual service itself, all those things are are part of the the decisions that I'll be asking you to make today. and we'll try and stay high level with the executive summary. I'll do that. And this is not of course new news to you. Uh just last Thursday we night we had the public hearing on it. Did a very similar presentation. >> Uh Dave Freshman will take number two going over a little bit more detail and then I'll ask you to adopt the uh oh then I'm sorry we'll go over the long-term financial plan. and then I'll ask you to adopt for input and ask you to approve the 2026 budget. So, as we look at a real high level here starting with 2026 and we've been focusing to some degree on a on [clears throat] a three-year time period, but let's start with 2026. Let's start with the good news. It's not without good news. Uh sometimes it's it's all about what didn't happen, right? And that's labeled here as good defense. Uh thanks to Lynen and many others, our Libyas, Tony Albbright, many other counties, this one, this issue really joined joined uh us uh as metro counties and beyond as there as we were a little bit under attack uh a bit of a raid on our funding, our transportation advancement account and you've seen some of the decisions related to that money. Very very important decisions coming through. Uh we avoided that. Uh we'll have to keep keep diligent on this next session coming up in that and other issues, but avoided that funding increase. That was a you know bit of a good new news piece. Uh really good news and maybe maybe a little bit just by the the nature of quirks and formulas. Our county program aid as we label it. Cities have local government aid. We have county program aid that increased mainly because of the nature of our population and citizens 65 and older and some other interesting pieces of that formula. So we'll take it right. we given the fact that the the high level good news stops there. Uh then we get into these other other concerns. Paid family medical leave, payroll tax, which is certainly a a noble law. It has the the right intent in mind, but there was a very obvious cost shift to Carver County and other jurisdictions, but in our case, it was $400,000. That's a payroll tax that we're responsible for. employees have the other half of that. We haven't necessarily factored in directly anyway the ultimate impacts of that as employees will are likely to take more time time under that law. We'll be keeping an eye on that as we move ahead. But but that direct payroll tax was $400,000. And then the big one as I as I mentioned these cost shifts the uh unfunded mandates not only you know just not not funding them but now saying well you're only responsible for for the administration of those items which is county's general responsibility but also the the cost of that benefit which is the case with the federal piece of this 1.5 million which was uh relatively small. I think the federal at least for 2026 the federal side of this was around $300,000 and that related to SNAP and med and uh Medicaid. Uh the bigger share was the state shift the $1.2 million and I'll go beyond 2026 but that was a real significant problem and as we've talked a lot about uh that 1.5 million that's 2% of our levy. So right out of the shoot we have 2% with nothing else that that that uh is under your control at least right right away. So very concerning again not unprecedented but maybe to the degree uh unprecedented other pressures uh going 27 and beyond the the crystal ball gets a little fuzzier here although I would say is clearer than usual given the the legislation and the costing we've done it certainly does look like uh if nothing else is done the state and federal cautious hopefully we don't get more cross our fingers on that uh but there's definitely uncertainty with the continued uncertainty although inflation has eased to some degree uh from double digits down to I think a little bit below 3% or so now but but still those uncertainties continued costs related to inflation uh some uh uncertainty with uh continued tariffs etc those are macroeconomic issues that that we definitely address directly in our budget we think there's going to be similar property valuation trends. If you know the answer to that, I'd like to join you in investing or not. Right? So, nobody really knows that, but it does seem like the trend is, you know, supply and demand. Again, macroeconomics, there's not going to be this magic new huge supply, which means that, you know, buyers are out there. Uh, probably similar trends. We'll have to see, but as we try and uh predict here, we're we think that's going to be the case. And then certainly continued expenditure pressures. As as I mentioned, we're in the service business. That's wages and benefits. That's our employees. Uh we do have one more year of our contracts and then we'll get into contract renewals. So, we'll see how that goes. But we do know that that that uh doing nothing uh we still still need to cover those wages and benefits at a significant portion of our budgetary expense. Uh and then as we focus on issues beyond the state federal cost shifts, those unfilled positions that you see, there's a whole list in your packet. Uh toward the back of your packet, I don't have the page number right here, but but the FTE list is in your packet. There's 21.55 unfilled requests. Plus, there's a new Chesca Library. this as 27. Uh probably 28 would be the the opening year, but we'd need to get those positions lined up for 27. There's a big question about how we do that. That's on on the next slide. And then certainly uh facility needs goes along with the provision of the service services with with the big biggest element being our government center that we've talked about on numerous occasions. More recently, that was just a week or two ago, we talked about the projected $82 million cost of that uh facility and and the the aging infrastructure that we have here, the 1965 building coming down, but it's a real issue uh to cover the the bonds, the the principal and interest on those bond payments. Now, even fuzzier goes out to 2028, but uh what we've outlined is the high likelihood of this 2% ongoing levy searchcharge is what we're labeling it. It that has seemed to have caught on with some others as as we're always trying to better communicate our budgetary message and to some degree simplify. Other counties have said, you know, we we have a similar problem going on here. And some have adopted a similar strategy to try and carve it out and say, well, how much is that? Well, in our case, that's that $ 1.5 million per year. I would I would say that it doesn't quite cover it. I'm counting on some good staff work, maybe some legislative change. Maybe maybe we could eliminate it completely. I don't think that's realistic, but we certainly like to bring that down. Uh but looking again uh beyond beyond 26 and seven and eight highly likely that kind of number is out there that $ 1.5 uh million dollar that that's an additional cost. So it's not just this base we're building. That's another 1.5 and another 1.5. Very problematic and the highlight of the budgetary package. And then on the difficult side of the equation, all this is difficult, I guess, but really focused difficult degree of difficulty. As I mentioned, we look did look at our services and what we what we do and what we don't have to do uh in terms of discretionary services and then those mandates above the minimums as listed here on the screen. If I can point out these things the mandate the mandated service this is a little bit tougher to vet out but we did a lot of that work up front starting back in April. Uh we're always looking at this base versus one time issue. Uh, I think we're pretty dang good. As good as many others, if not quite frankly all all others of our colleagues as I look at some of what I would consider the leading counties like Dakota and Anoka from my perspective, maybe heading heading in to some degree in the wrong direction using one-time money uh to apply to ongoing costs. You probably heard some of the grumbling from your your commissioners, Dakota County in particular, uh, in terms of the decisions that come back to to bite them, right? Uh, we're we're not we're we're really trying to avoid that. I can't really there's maybe a couple mixed in here that we're we're hoping that that they'll go away, but generally we we aren't doing that. We're not applying onetime funding to ongoing issues and and obviously applying strategies to mi mitigate the impact. what what can we do maybe not just to cut things or even to scale back things what could we do to mitigate things maybe it's an investment for example in technology to help us out if nothing else to control uh the uh impact of future costs of staffing for example so many many examples of those kind of kind of uh items in the mixture and then finally along the lines of watching the future maintaining those capital uh financing plans I I would tell you it's pretty tempting to take I think was it 460 on the government center additional 4 460 it was >> uh it's pretty tempting to say uh maybe we just kick that kick that down the road right uh that's not in the mixture we we are sticking to the five-year plan uh if you don't stick to the plan you're going to have to adjust which means longer uh my perspective is that building should we should should have been on top of this last year the year before now obviously we went the whole story of COVID and school referendum failures. You weren't there, Commissioner Anderson. >> I was there. >> Let's not talk about that. Uh but all those kind of things, you know, I think again sticking to this game plan is is it's not easy and that's part of the whole package that's in front of you today. And then finally, I think the last slide [clears throat] on 28, uh, revenue opportunities, very, very critical to look at nonpropy tax revenue opportunities. I would say they're to some degree limited, uh, but they all make a difference. We recently came through with the the fee schedule, for example. Some nominal increases, but they all add up and they're they're important. uh you know, part of this whole shift uh from the state and federal down to the counties. Part of the concern related to that, of course, is this additional burden on the property tax and >> and the inequities that are created by doing that given the regressive nature of the tax and I would say arguably you could say, well, user fees are are more fair, quote unquote. So, we do look for for certainly those opportunities. uh not that it covers everything and there there still is this sort of macro uh hangover that we have here of of how much burden can the property tax take to pay for things that have traditionally been covered not only by state uh taxation typically income tax uh but but by federal income tax for example. So that's all hanging out there uh on the horizon. And then of course we're going to have to continue focusing on personal expenditures uh with a continued soft hiring freeze. Uh I would say this is a little bit of a communicate a big communication issue from my perspective. We always have a bit of a soft hiring freeze. We're always looking at uh the turnover. We're always assessing when those come through as vacancies. We're always trying to get creative with those save some money, keep the services relatively intact, etc. So it's always ongoing. But this is more of a formal hey make uh have have a realization that this is happening and and one of the things that sometimes happens is it does slow things down. That's uh an unfortunate consequence but extremely important to take a hard look at vacancies to avoid ultimately layoffs for example and along with that that opens up opportunities for work realignment perhaps divisional reorgs. There's been a whole mixture of those along the way. There's a number of those in the packet. uh sometimes those come off off budget cycle. Uh that's an ongoing process that that we've undertaken many for many many years, not only this budget cycle. Uh outsourcing uh you just heard about that during uh the public comment period uh in the in the packet. There are uh custodial positions listed as being eliminated, other positions being listed as being created in an effort to outsource our custodial services. I would say uh yes, that decision would be made today on the change in those positions, but we'll be bringing that back to you in the form of a proposed contract for services for with additional information and and further deliberation. And of course, we're also going through our union reps. According to our contract, we meet and confer with our unions. Just one example. Uh there's others. Uh Threeverse Park is another big one we've talked about. Uh would that make sense? Uh pretty major outsourcing uh review that we're undertaking that looks pretty promising, but it does have its impacts on on our existing staff, etc. Uh we're always looking to mitigate those of course along the way. That's a real complex one that we'll be be bringing back and Lynon and team are working on that as we speak. And then one more, you know, behavioral health was another I I'd say very successful outsourcing effort that that has been done that did result in uh some significant cost savings and uh I've heard pretty good things about the continuation of that particular service. Uh other ideas that we've implemented, you recently heard about the voluntary furlow program, the 4day work week. I think we saved just over uh $90,000 with both of those in incorporated half of that into our base decision here. Uh the other half we roughly we are recommending applying to our seasonal temporary and on call budget which in effect is a flexible account that enables us to address a variety of issues related to perhaps these two things furlows or or work work leads. beyond that back to paid family medical leave as people head out the door uh you know the work is still there right so that those sometimes depending on the circumstances those stocks help backfill so we in the recommendation again to take half of those savings and and put that and add that to that stock account. Uh just a few slides then on you know focusing stepping back and and sometimes we focus on numbers and like wait a minute what what is it that you do you know sometimes we're labeled as invisible and get confused with cities right which is okay it's kind of like that that's fine uh but we are providing services and I would I would say doing a dang good job at providing a good value and uh uh quite often talk about the the the uh the scale and scope of the things that we provide here. I think you know even after many many years in the county business it always amazes me how much we do how deep our impacts are and just how broad and just some examples here. I won't go through all of these but you can really easily pick up on the variety of things and the the critical nature of what we do. This shows how uh a $100 would be allocated. So, it's a snapshot trying to simplify uh and communicate the impact of our our levy uh by a little bit of slicing dicing on the dollar billing. And no surprise uh you can see that about a quarter of the the dollar would be allocated to health and human services. Uh community health seems like that's a growing area. We'll keep an eye on that with the unfunded mandates and cost shifts. And then uh other areas, I won't go through all of them, but the county sheriff with uh protection of our citizens is second operations has all sorts of things in there. Uh adding up to $16 out of the or 16 Yeah, $16 out of the 100. It just gives you a good picture of how our services, you know, the the dollar amounts provided to the various services that we have. And this this again is levy. There's some confusion sometimes around levy versus other revenue. And of course, uh, levies always our focus. That's the actual property tax collected. County property tax collected, not city or school district. We're constantly educating on that. Right. A few uh, good pictures of folks. Looks like a nicer day. Kids are heading into the library. Uh, if you took the levy that we apply to libraries around $8 a month goes to our our library system. So, we're always leveraging other dollars in this in this case from state library system dollars and I would say it's a great example of a partnership of course you know that you can see the literal bricks here uh those brought to you by and funded by the cities and I I think that is a great model that has withto withtood the test test of time uh we are we'll be planning on proposing the same thing of course with Chaz building a new library uh but I I do remind Matt Potaraskki and others, the city administrator of Chesca, we take the line share over the years, right? We're we're the operations. So, so this8s is really about the operations and collections, which also tends to add up. But a great example, very popular service. uh something that as we look into 28 or 27 28 will be a focus of our discussions as we're trying to figure out how do we maintain those services maybe in a different way maybe uh likely through electronic access and we've already of course started that with with Victoria but with a game plan to do all of those libraries in a different uh uh provide those services in a different way. I think most citizens would say, "Well, yeah, this is what counties do. We we plow roads." Yep. We 100% do a dang good job at it for around $12 a month if you want to break it out that way, the the levy amount. But it's a lot more than that. Uh and you know, if you look at the history of counties and, you know, I mentioned these cost shifts. Uh built into this is maybe uh something that most folks don't recognize. we've been taking care of the big problems when the state has I I think been sherking some of their responsibility. So, uh state highway 212, state highway 41, state highway five, all of those uh the county board give you a lot of credit over the years sticking sticking to the plan here. Uh that was a new revenue source, the sales tax revenue source. Those roads are getting done. So you don't some of that might I guess this is operations more so you don't see that in this $12 but it's there and it's real and I think the fact is those things are getting done and it's it's sort of part of this whole mixture as you look if you look at it that way so be well beyond not only snowplowing in the traditional coverage of our own services but into some of these non-traditional areas where I can almost guarantee a 212 would still be a two-lane road with without the involvement of past county boards Right. So, thank thank you. Thank you predecessors for that. Uh, couple more. Met parks and trails. Another great popular service we offer. We do a great job of with this $2 amount. Of course, we leverage other dollars of Met Council in particular. But if you look at our regional park system, boy, do we have some gems. You almost feel like we shouldn't tell people about Minowasha, right? It's so nice [clears throat and snorts] and quiet and but we do want to market these and and recognize the they are regional and by their nature intentionally for not only Kai residents [clears throat] but others. And finally, the last one I'll put up on the board here, 911. Boy, what's more important in terms of uh the services we offer? If you dial 911, you're you're probably in in dire need of some help. And we do a good job. this uh services provided uh sit down the basement of the justice center. In this case, the levy amounts $4, although as uh Commissioner Fay, you're on the emergency services board, correct? Uh other funds come in n uh uh cell phone fees, etc. to to help support this whole system, which is critical uh literally in its nature. So, with that, uh, I will, unless you have any comments for me, I'll hand it over to Dave Fishman, and then we'll stand for questions. >> Thank you, Dave. Morning, board chair, and and board members. Dave Fishman, property and finance director. Um, I'm going to focus more on the numbers. Uh, starting off with the tax base trends. You can see um the very very start the the overall tax base 20 almost 24 billion increased by just over six% compared to last year. Uh, a significant part of that increase was new construction. And then that number is a is a critical number because that $2 million is that we the board can increase the county levy by $2 million in um 2026 without impacting the rest of the tax base, the existing tax base because of that new construction. So that's a that's a key number as part of uh as part of this overall process. and looking at the average value increases. Uh obviously there's challenges with the averages, but just to kind of get a feel for um the different type property types. You can see industrial um had the had the largest increase all the way down to commercial um it was uh the the biggest decrease. And the key point to that is regardless of the county levy, regardless of county spending behind the scenes is there's a property tax shift. the burden's being shifted from the commercial egg properties because their values are decreasing and it's going to the the properties that are increasing um and within each each uh level uh each type the uh if a property a residential property increase by 8% say compared to a property that that only increased by 2% um there's a shift going on behind the scenes there as well that's not impacted by the county levy or the county spending in terms of the overall budget summary. You can see the last three years uh have have the various lines just to kind of provide a context, a little background for uh how the 2026 budget came together. That county levy increase that's being recommended by the administrator is $6 million increase. You can see how that compares to uh previous years. And with that 6% or the 8%, excuse me, uh $6 million is made up of two factors. A 6% is we're calling it the base increase. um to continue operations um at at the current level of service and then the 2% increase for the legislative impacts that the county administrator uh summarized earlier. I have a a more detailed slide to provide some of those numbers, but keep that in mind. The overall 8% increase how that compares to previous years, the 6.8 um is really that that 2% legislative impact. Um the next line item of the projected salary and benefit increase, you can see that's obviously a significant number for us. That's the biggest increase in terms of our expenses from one year to the next is our um salary and benefit increases. And that's just for current employees. It's not adding any additional FTEEs. That's just the the ongoing cost uh to maintive wage and competitive benefits. Uh you can see in red I highlighted the 1.5 million that m county kind minister mentioned earlier and that's the that's the impact directly from legislative impacts mainly at the state level but also some federal impacts um that we're seeing. I did put a asterk in previous years because administrator MZ mentioned uh those kind of cost shifts uh those have been going on in previous years. It's it's not it's not uh it's not a new phenomena. it's just the the amount this year uh really just jumped off the page. A really big number. So, um felt like it was uh appropriate to to um split that out. And then it also then ties to that 2% um legislative impact, the 2% search charge that's included in the ministry's recommendation. Uh the debt service, the next line, uh you can see that we started that uh last year in 2025. um continue that recommendation for 2026 and then for three more years. Um that'll build up the the levy amount for u a future bond sale, government bond sale, government center bond sale. I have a slide showing some more of those details. Um overall the count the next number next two numbers are uh changes um adjustments that we made in our budget. one is at the countywide level and then the second is uh within each division and you can see all those numbers um compared to previous years and then I did put in green um the FD levy changes that's a net number you can see back in 2024 we actually uh increased our levy for new positions um that so that was a cost in 2025 we had no levy dollars went to um FD changes and then in 2026 there's actually a a a positive number in terms of the levy um from vacant from savings from um eliminating vacant positions as well as the various reorgs. Um so those that's that's the highlight the high high level uh picture of our overall budget and then the next slides are going to break down provide more details on those various line items. There's a lot of red here. I apologize for that. kind of hard on the eyes, but I I left it in there on purpose because uh the numbers have have a huge impact on our budget. Um and they really are, as the [clears throat] prime ministry mentioned, unprecedented in terms of their their amount. Um the you can see the the 400,000 that's actually included in our base levy. That's a that's a cost that's been absorbed in the base levy, the 6%. But then the next uh four line items are all um with the federal at the top and then the two the three state numbers with the big one being the 910,000 uh for the do not meet criteria. Um that is a cost that the state had been paying up through uh June of 2025 and then they made that uh change that now the county is now responsible for those costs and that represents one person um at a at a facility co a daily cost um and and that's an annual amount for 2026 is over 900,000. >> Mr. Chair, if I could I just wanted to break that out. Um just that's on record. That is correct. It's for one person and that was a a shift and people ask me what what is has the state shifted to you? This is a perfect example of 910,000 for one individual. I just want to make sure everyone's clear on that. >> Yep, that is correct. Um and then continuing down you can see so that's the 1.5 million from 2026 and then looking out at 2027 there's a new um uh legislatively approved cost um that is from they're calling it the act and that's new child child protection costs that are actually ordered by um a court ordered by a judge. Uh so we we it's not something we have any control over. It's just something that we're projecting uh based on the new legislation that we're going to increase in 2027. Um and then additional cost increases in in 2028. Um so if you take those um three uh amounts over the next three years, the total levy need that I have down in the bottom right corner is over 6 million. And the administrator is recommending the 2% levy search charge uh for 2026, 2027, and 2028. You add up those three amounts, those incremental amounts each year, uh that's 4.8. So, as administrator me ad ministry he mentioned, that's still not enough. Uh so, we're still going to need some help from the legislature or from um you know, creative staff things or whatever, but we still have uh overall um a negative amount in terms of our current projection. And that's that's with the 2% uh search charge over the next three years, next three budget cycles, 2026, 27, and 2028. And if I could, sorry, Mr. Chair, if we could clarify that in 2027 3.4 with the 9 uh or excuse me, $910,000. Uh just want to point out that's $4.5 million just in the those two items. >> Yeah, those are big numbers. Um Oops. So, let me just make sure I did that right. Yep. Okay. So, um, taking a look at, uh, the metro area, these are the property tax the preliminary property tax levy increases approved by the county boards in in the metro counties. And these this, as you as you recall, this these were all set by statute in September represents the max the the the highest increase um for 2026 for the counties. Uh, they could go lower. Um, in fact, we've heard that NOA County has a the ministry has now recommended a 9.4% increase. Uh, so a slight decrease from um from the preliminary um the county administrator he has continued his same recommendation 8%. You can see where that lines up with uh other counties. uh in the lower uh lower half for sure. In terms of the impact on that from the administrator's recommended um you can see where we started the close the budget request gap that's that's the top line item that would have been without any other changes back in in May when we put the overall budget together with a 12.7% increase. Um the recommend the recommendation the final recommendation is same as the preliminary the 8% uh 6% base 2% search charge as I mentioned um that would the impact on that average value at home uh which increased by 4% uh from uh um last year to this year for for next year um is now and it's now at 475,000 that monthly property tax increase would be $6.80 or uh 5.6 six just over 5 and a.5% increase in the county property tax on that average value of home. You can see some of the other numbers there um including the 2025 2024 what that um the 6.8% increase how how that impacted that average value at home and the difference between 2025 and 2024 would have been fiscal disparities. There's some adjustments where we're sharing the commercial tax base with the metro counties and we had some you know relatively good news in 2025. Um and then and but that so you can overall see how um the tax impact has been on the average value of home for the last three years. Uh this slide the board will remember we've been doing this for a number of years. It just tracks the average value home. Um that's the increases along the top how that uh the values have have increased over time. And then the chart is showing uh the CPI in green. Uh how that um that that inflationary um measure has been increasing over time and how that compares to that tax burden on the average value at home. You can see they've generally gone in the same uh same direction. and then the administrator's recommendation at the end. It is a um we're we're leading obviously we're looking already into 2026 in terms of the recommendation and then their CPI is you know lags um and we we find out what it was you know uh based on historical so it's hard to it's hard to keep those two in line but you can see over time they're generally following the same pattern. Do >> I need to mention the AAA rating down at the bottom? Um boards are well aware of that. That's the uh um our standard in pores. Uh they look at the the county's ability to to pay um the debt service on uh the current debt service that we have and they the AAA rating represents the highest rating uh the lowest um interest costs um that that when we issue the debt. So it it's uh reflective of the county's strong tax base uh strong financial management um and various other factors. But that's in comparison to others and it's it's among less than 5% of the counties across the country have the AAA rating. >> Uh Dave, before you go off from that, have is the CPI been updated lately because it seems like uh the price of everything has gone up exceedingly uh from 23 to 22 and it just it's an average increase. It just seems like it should be higher than that. >> Yeah, that's it's a hard number to track because there's uh various factors in there. Um and you know um actually Mary Kay you know checks on that and she's she's evaluating that this by the time we get a 2026 number uh 2025 number could could have been adjusted retroactively. So, it's an ongoing challenge to kind of keep track of those numbers. But, yeah, I agree. It doesn't doesn't quite have that that look to it that that you'd expect. Spreading providing some more detail on um that 665,000 uh uh excuse me, million increase. Um, in terms of our the levy savings for for AC across the county, the countywide levy um savings, the um the there including in that is that $450,000 increase in levy towards the $82 million bond sale that we're planning uh for for 2028. um additional money for maintenance um and repairs and facility and vehicle equipment as mentioned um the county administrator we that was considered to taken that out and not following through on our plan to continue to put more money um in and towards that but it does fit in well with the board strategic uh new strategic plan to uh prioritize uh the u equipment that we have and the facilities that we have maintain those well uh replace them before they get too old. Uh the good news as minister Hemsy mentioned is the almost 800,000 in county program aid that was uh allocated to the county based on the state's formula. Um and then some more vacancy savings just based on the um incremental cost their wages and the same percentage but just recognizing that we budget for um everyone being here all all staffing positions being filled but recognizing following the trends that it doesn't always happen. And I have a chart that shows uh where that number comes from. Just a quick summary on our the government center project. It's a phase one of the master space plan. There's additional um buildings that that uh we'll be addressing, but the first one is the government center project. Um looking at at our future uh current and future space requirements. The current [snorts] plan is demolish the two oldest structures, build a new building, and then renovate the 602. Uh the interior of that building. The exterior is in pretty good shape. Um the timeline's there. Total budget. Uh we have that the need is uh 5.3 million debt service principal and interest payments. We have 3.5 million available. Uh and that that includes additional u bonds that are going to be that are going to be paid off between now and in 2030. Um, so that means there's the gap and the plan is to close that gap by increasing the levy by 450,000 for over five budget cycles and this is the second of the um of the five. So we have three more budget cycles to go. U switching now to our our capital improvement plans. Uh these are the focusing on the levy dollars that are going into these plans. Uh for 2026, uh Road and Bridges has just under 32 million planned in terms of capital projects. That's actually less than um than last year, but only 2.3 million of the of the funding for that 32 million in in projects comes from the county levy and that's specifically for preserving the existing road. So road preservation and that amount didn't change from from 2025. The board may recall that um approximately 10 years ago um public works uh director Lyndon said we needed a million more dollars to preserve the roads that we have. So over the next 10 years, 100,000 a year for 10 years, increased that levy up to that 2.3 million. Now leveled that off. Um and um so that that that was a that was a really good story about how we set aside money and preserved. Um, so we had money available to preserve as we were building out the the road and bridge um over the next um over the last few years and then into the future. The other numbers there show the other capital projects uh for the various other CIPs um the parks and trails and building miscellaneous and just highlighting green that there's no levy no county tax levy dollars uh going into those capital projects. And then our uh we have attachment D in your packet for our five-year um facility [snorts] equipment replacement plan. That's uh 2.8 million. Um that's uh it's the total for the various um departments that are listed there. And out of that 2.8 2.1 million is coming from the tax levy. And that's actually a $200,000 increase from 2025 with 100,000 going to the the equipment um and vehicles. And then 100,000 is additional for uh parks and and and trails um their maintenance or their uh uh replacement plan. Uh this is the a chart showing the county program aid and you can see the $800,000 increase. That's the total difference between 2025 up to 2026. Um you can see the the majority of that's going into the um kind of light purple the majority there that represents the general fund and then smaller amounts going into our cip or cap improvement plans and then the onetime projects um that's on attachment and and you can see how that's kind of varied over time. Um but it definitely shown an increase le um you know from from 2023 more state dollars have been coming to the county. our vacancy savings. Um just a slide showing, you know, the green and on the left is the what we budgeted and the actual u they're pretty close. Um going out and then in 2023 they got really close and now you can see in 2024 we actually uh what was uh the actual was lower than what was budgeted. We're including in this our our cash [clears throat] flow. We um each year our our uh as our budget grows, we um set aside a percentage of that budget in our cash uh cash flow reserve. So we can we have money because we only collect the property taxes twice a year, our main revenue source, but we're obviously spending money every day. So we need a cash flow reserve and that needs to grow as the budget grows. So, this vacancy savings is a is part of the funding for um that inc that annual increase along with having um lowering our our our levy because we're not um we're recognizing that we're not going to be fully staffed. Um so, we're not we're not levying for 100% of our of our staffing. And you can just see it's just it's just based on trends trying to project um the future um based on based on what we've seen in the past. Uh then one more slide showing our uh these are the various levy adjustments uh that we made but these are focused on the division not the countywide uh adjustments that I that I just summarized. So you can see the various uh divisions um have um provided various levy adjustments um line items that they they've gone through and then we summarized them up. Um and you can see down at the bottom that significant um number was the revenue increases almost or 360,000 and then targeted levy adjustments. We did a separate exercise where we um focused in on on making you know changes to our our way we process things. Um looking at the reorgs looking at various um um ways that to save levy dollars and that total that effort totaled uh just over a million dollars. And you can see those are summarized on this slide again by um the various divisions. And you can see there's additional revenue um various in in public works in health and human services uh where they are specifically going after uh different revenue sources. Um so that was a a very worthwhile uh exercise. Um came up with over a million dollars in levy adjustments. focusing on the staffing our FTEES there 265,000 uh number in green I mentioned that earlier how that fits into the overall summary um the there's actually a net reduction in terms of the um FTEES in our in our regular budget of uh the 1.8 int um and you can see the the highlighted in red the various um positions that are being eliminated. Those are all vacant positions and then a few um increases by uh we're funding other funding sources that are available that accounts for some of the the smaller increases but overall is a net savings in our um our staffing um changes in terms of the FTEES. Um but we we are including that 1.5 million that we mentioned before legislative impacts are three um additional FTEES mainly to process the the new requirements in in the SNAP um benefits. Um and you can see the additional cost there. There are some other funding sources to offset some of that, but um there is going to be the levy increase of just over 200,000 which is included as part of the 1.5 million um legislative impacts and the 2% uh search charge. And then finally, our attachment E, which is our these are in your packet. These are the one-time projects that uh that were asking recommended the board approve uh with one-time funding. Um, as K County administrator mentioned, we do a really good job of keeping track of our one-time costs, one-time funding, and then our ongoing costs and our ongoing funding. This this would be all the one-time costs. And and we have the long-term financial plan. And out of that plan was the 1.6 million of these projects. And then uh 2.5 million were were division requests that were been uh that um were developed over the last year that were not part of the long-term plan, but are still being recommended. So the 4.1 million in onetime funding funds those 4 million in one-time projects. This is a a summary high level summary of our overall capital projects. Um the financial plan highlights uh the the levy dollars that are going to these plans right now in 2025. And then you can see in 2026 the recommended increase along with um you know our plan in terms of where we're going. Um and you can see that the [clears throat] 2.3 million levy for attachment C or road bridge CIP that's now been capped. Um and uh won't the plan now is not to increase that at least for the foreseeable future. Um you can see the uh buildings and miscellaneous and the facilities um how those current levies and then uh the recommended increase both on a ongoing basis as well as the one time from a year in savings account. And those are ongoing. And those are going to be things we're going to look at every year. We are going to include them in our long-term plan, some of the big costs, so we're going to be aware of those. We also recognize that there are things that come up during the year that we are are unexpected. Um, so we're going to continue the planning for those as well as the looking for the revenue sources. Um, then just to highlight again the master space plan, the phase one is u the levy 3.5 is available. uh the recommended increase 450 and then eventually we'll get to 5.3 in in 2029. We did we did list the other buildings for phase two. Uh at this point there's no uh no levy dollars have been allocated towards towards those projects. We don't have costs yet um that'll you know th those are all coming but just to give the board a heads up that um th those are on the list um eventually to to start addressing. And this slide shows uh just kind of highlights um as I mentioned the the personnel being in the light blue. Um that's that's the biggest ongoing part of our operating budget. Um some non-personnel stuff is in the grayish or light purple. Um debt service is a pretty small uh number for us at the county that that will grow um in in 2028 when we issue the debt 2029. Um but we'll have the levy available for that. That's the plan. And then you can see capital outlay that that's the road and bridge uh projects. And you can see how in in 2024 was a big year. 2025, this past year was even a bigger year. And now they're taking a breath and um going back and and 2026 is more of a a normal year compared to previous years. But last year, you know, was almost 300 $300 million in in total both operating and capital projects total budget for the county. Lyndon slipping. Uh >> yeah, I think Yeah, there [laughter] >> I'm not sure what he's gonna do next. >> They're taking a breath. Yeah. >> And primarily 212, correct? >> Five, highway five. >> Yeah. Do some planning for those. Um Mr. Chair and board members. So, our year-end savings account, commonly referred to as Yes. Uh quick update on that. You can see where we started the year, just under 8 million. um spend some of some of that in the 2025 budget. Uh recommending that we we spend more of it in the 2026 budget. Um so then you know 5 a.5 million is estimated at at this point um in time. Uh so just looking ahead our long-term financial plan. Uh just a reminder to the board that it's a nonbinding assertion of future intent. You're not adopting any projects at this point in our long-term financial plan. you're not committing any revenue dollars or levy dollars to anything. It's just our our our tool, our planning tool that staff uses um to keep track of um the various projects and the various funding sources and um thing making a list of what's coming. Uh what we added we've had in the past is our FD costs and benefits and um recognizing that that's that's where the biggest pressure comes from our operating budget. Then the master space plans, phase one and phase two, those are included. And now we've added the legislative impact. So it'll add the 2027 and 2028 um you know the next three year two years after um 2026 in terms of what those numbers are. We'll keep those updated as we as we move forward. It does have a five-year replacement schedule for all our our facilities, vehicles, equipment. That's everything we can think of that moves or that needs to be replaced. roofs and and and parking lots and vehicles and IT equipment and um it's it's really a helpful tool for us to be able to manage um a large amount of of uh equipment and and and things that need to be replaced over the next five years. It also includes our our CIPs u going up from five to 20 years. And as I mentioned, it's they're funded a variety of um nonpropy tax levy dollars. Um, in terms of our operating budget challenge, you know, the biggest one is that is that, you know, six million plus or minus wage and benefit increase for existing FTEEs. And then the new FD requests, uh, we had um over 20 that were unfilled this year and you can see it. We got I got a a slide showing the bulk of them is the requests are for the next two years. Then it does slack off a little bit. Um, but that's a that's a ongoing challenge to um as the county continues to grow, as the as the work that we do continues to get more complex and there's more requirements um how how we manage that um with the existing staff and then adding staff where we can health insurance there. This is the second year 2026 the second year of a two-year agreement. So, we'll be going uh out for our 2027 health insurance. um uh agreement. We'll be doing that in 2026. And as we know, the market um sometimes the market's been good to us. Other times the market's not been good to us. So, uh that's where the the multiple question marks on that. We'll see where see where we end up in um next year on how we're going to um what the health insurance is going to look like for the next couple years. And then finally that new legislative impacts as I mentioned that's been in there's 6.1 million increased costs that were projected at this time over the next three years and the administr recommended that 2% levy search charge for three years but it still has that $1.3 million gap. Looking at the FT requests u by year by department uh you can see as I mentioned 2028 in the orange [snorts] and and 2027 in the blue. Those are the two um big years in terms of requests. And then you can see on the chart down below the bar chart showing where the different departments uh where there's that. You can see the library that's the one that kind of jumps off the page um for the for the Chaza the new Chesa library. [clears throat] And if you put those requests um and compared that to uh a thousand residents, which is a pretty common benchmark uh that that's out there. You can see how it it it um the red shows what's in our budget and then the yellow shows what the division directors requested. You can see it's kind of flat for those two years and then it drops down and then the green is just simply taking an average. if we smoothed out those requests over a 5-year period, um how that would um what what that would look like in terms of u the FTEEs that are being requested compared to the population growth, the population growth uh from the Met Council. Uh a quick summary of our five-year facility vehicles and equipment placement [clears throat] schedule. um the 2.1 million I mentioned um that's the levy dollars going uh to the various departments and it allows us to keep a an [snorts] orderly and organized replacement schedule. Um there is an looking this is now we're looking ahead into into 2027 and beyond. Um the last uh several years we had vehicle increases 20 to 40%. So, we're starting to fall behind industry um standards in terms of replacement. And so, um we'll be recommending increase that h 100,000 that we've been increasing to increase that by another 50,000. So, $150,000 increase um for the for the next several years to try and get um more dollars into our replacement schedule to um get us to be more closer to the industry standards in terms of vehicle age. There's also going to be some one-time requests, some kind of bubbles. Some of these pieces of equipment are, you know, three $400,000. So, it's hard to uh schedule those out evenly. Um so, our U public works is uh who manages all these numbers, they're they're going to be look, they're going to be um requesting some one-time um supplements to that plan to be allow us to uh take care of some of the the years that we have some bigger needs. Just planning uh just giving the board board a heads up. We'll come back with more details uh next year at this time. Then our looking at looking into the future with our capital improvement plans. Um we talked about the Chesco library. At this point it's a $4 million onetime cost to furnish that still is a huge number. Even though architect uh just was explaining that to us why that's so expensive. But the steel shelving I guess and all the books and and all the furnishings uh it adds up quick. Um the funding source at this point is is a year-end savings. Um we have put some money aside for that, but we're going to need to find some more. Um or we could the potential to add it to the bond sale if the if the timing is right and and we can um the levy is there to pay for that. So um that's become that's been something that's been on the table. It's been talked about, but it just kept getting pushed back pushed back pushed back. So, we didn't really um uh kind of zero in on it and we were focusing on the master space plan and and other things. This one now looks like it's becoming real. Um so, we're going to have to we're going to have to zero in on and find the um a funding source for that for that project. Uh highlight some other facility improvements, some $500,000 uh big ones that are in there. Uh those we're trying to line those up with the government center project. Obviously, we don't want to have to put a bunch of money into something and then then tear it down. Um, so we're going to try and avoid that. But there is some things that that are going to need to be done. Um, there's also a couple uh software uh projects for uh both patrol and employee relations payroll uh that we're got to manage those and make sure we got the funding for those uh uh when those are needed to be replaced. Um, and then the master police plan, um, that just continuing the, like I mentioned, the the five-year plan. Uh, so that'll that'll be, um, in in future years, future budget cycles to finish off that plan to make sure the money's there for that bond. uh road and bridge cap. Uh that obviously that's a uh um that's what's funding all those those um hundreds of millions of dollars worth of projects that we've done in 2025 and then [snorts] 26. Lyndon's got five years and in 20 years is they're doing the transportation plan. So, um, but as I mentioned, all most of that money except for that preservation, that 2.3 million that goes into preserving, everything else is all non- tax levy dollars. So, federal, state, met council, uh, city contributions. Uh, so they do a great job attracting all that. Um, parks and trails, they're they have um three goals. Stewardship, modernize, and expand. Uh, the good news is they've got a solid financial plan for the stewardship, the modernization, and they're working on that. um the expansion is where the question mark is. Um so that that's going to be a focus of a um a workshop in January, February uh with the board to talk about the buildings, the park buildings and and what needs to be done in terms of um should they be replaced? Should they be expanded? Should they be um you know, just what should we do with them? Once we figure out what what the board uh what the recommendation is, where the board wants to go, then we'll start putting together a financing plan to figure out how we're going to um come up with the money and the timing for that. Um the good news is on the trails side that there's 2.7 million annual trails funds the um transportation active advant uh account. Um so there's there is there is plenty of money there to expand the trail system throughout the county. Um it's it's a there need to prioritize there. They need to come up with a a plan to prioritize. that's also going to be part of that workshop in um January, February, the recommendation as to how that um how the county should proceed with with spending those uh the money and that's really that's a sales tax sales tax money being uh allocated to the county. That's a that's a big number. And then the regional rail authority um just developed an implement pavement management plan and the cost share policy for trails. Um that's that's a uh related to the to the trails that are on the regional rail authority property. Uh this the uh this this concludes the 2026 uh budget calendar. You can see that the number of meetings throughout the year. Um, and then it ends with the final recommendation u from the county administrator for the 2026 levy and the budget and then the 2027 uh long-term financial plan. So with that, the actions requested highlighted here and they're in your packet. Um motion to approve the budget levy uh for those dollars amounts as well as a motion to approve the long-term financial plan resolution that's in your packets. With that, stand for any questions. All right. Anybody got any questions? >> Anybody got a motion? >> Actually, I do. [clears throat] >> Commissioner Anderson. >> Yes. Um, thank you, Mr. Freshman and, uh, Administrator Hemsy, um, for all the work you've done on this. Just a couple of questions. Um so there were two slides on yes account the yes update and um one of them was how we're spending onetime money this year. I can't seem to find that in my packet further. And then the other one was slide 42 the yes update. Um and it talked about the unassigned fund balance. How much is in that unassigned fund balance? I know that that's, you know, we need that for for um to to, you know, we need a certain amount. How how much do we have from a percentage-wise in our unassigned fund balance for our cash reserves? Um well yeah that uh so I mentioned that the cash reserves needs to increase and um I'm gonna >> usually it's a percentage of the overall >> used 35% looking at Mary Kay and I think it was 36%. >> 30 was 35. I was going to say it was 35. I knew we lowered it but I didn't know how far we lowered it but it's 30%. So it's 30% of um the next year's operating budget. >> Okay. Um, so I've been doing this for a year and I'm still confused by what we call Yes. what we call unassign assigned fund balance, what we need for cash reserves. Um so uh um so I'm I'm still trying to get that and and maybe we use that yes um of too often in in my opinion and and we should just set aside and and let people [snorts] know how much is in that unassigned fund balance and label it that way. Um just as a thought. Yeah, I may it gets confusing because the terms you know reserves and cash flow reserves and they are different and I did mention that that um 30% but I did include it in the in the um >> in the in the presentation because that's a board policy that that sets that and because of that it there is really no um you know it just it just happens right Mary Kay crunches the number we the budget goes up and we need to come up with that cash flow um and it just you know so it's just that's a that's uh a number that um the board controls through their policy, but there's no real active involvement with it. The the year-end savings account is the fund balance that the county has that is unassigned. That is that is no not going any place else. It's not reserved for cash flow. It's not reserved for for capital projects. It's not reserved for anything. It's literally the only money that's left that that has not been assigned or reserved for something else. So, So the slide 42 is that that those numbers. >> That goes too far. >> Okay. >> Right there. >> Yes. So is that the unassigned or the unassigned fund balance? >> That's the unassigned fund balance. >> Not cash reserves. >> Not cash reserves. Okay. That's correct. So now you know in other in other places we would call this our unassigned fund balance and you would know what we're talking about and everyone else would say what is that? I don't understand that. So we turn we changed into year-end savings account y because that is something um it was just a shorthand for us that makes sense but it's the same thing you you have the more technical term. This is the car account. >> No and and I'm fine with that. I just want to make sure that those cash reserves are not part of this number. >> Yeah. No no like I said that's separate. Yep. Okay. So, >> so this is and and the so the so the unassigned fund balance or the year in savings account whatever whichever name you'd like to call it started the year at just under 8 million and you can see that it was spent in two in two ways um you know drawn down and then the it was actually added to we got the um IRA rebate uh we added that back into the year savings account um so that that you know added to that balance and then we're recommending the Congress 's record, we spend just over a million dollars out of that account. Uh, which is a which is a typical thing. We typically look at that and then we need have some additional projects that we don't have onetime funding for. So, we draw in the year- end savings and now we're saying it's it's um just over five and a half million. That will change based on 2025 our our year-end actual the budget how that happens which typically has been an increase. So, there there should be another increase but not always. There's been years where it got drawn down because um various factors. So, uh we're we're projecting at this point that it's going to be uh uh no impact from 2025 that that our revenue budget revenues and budget expenses actual the budget are going to be right on zero, which we know is not going to happen, but it'll be it'll be up or down based on when we get done with the audit. >> So, so two things on this. One is I do want to point out that $381,000 has been spent this year on that does not meet criteria. So if you add that to the 910,000 that's budgeted for next year, we're well over a million dollars. >> Yeah, that that's a great >> for that one person sitting in that facility in Anoka. So just >> pointing that out. Um, and then did was there another slide on projected costs or um projected use $4 million a use for Baylor Park and um a road project for next year. Did I see that earlier? An earlier slide that also was labeled yes >> there. [clears throat] >> Yep. >> Yes. Okay. >> So, so this this 1.8 1.08 08 yes transfer that that's referenced here. That's the same 1.8 that that's recognized in green recognized here. So that's just showing where the funding so it part of that 4 million part of that funding a million dollars came out of the year in savings. Um and then this is just showing what's left of the year in savings after that million's been taken out. >> Got it. Okay. Thank you for the remedial version. And >> could I add to that, Mr. Chair? Yes, >> I think there's attachment in their packet. >> Yes. Yes, it is. >> We have the detail. >> Yes. Yes, I did see that, but I >> I I just needed to connect connect the dots. >> Yeah, I should have highlighted the 1.08 in yellow and then you would have recognized those are maybe >> I you know I'm here to bring the average down, let people ask these questions. So, um that's the only real question I had. Commissioner Henderson, are we still waiting for you? >> No, that was the only real question I had. >> Anybody else? >> Mr. Chair, just a a comment and I'll go ahead and uh make the motion if you would like, but out of our packet just during this process when we were developing the recommended 2026 budget, the staff followed the board's guidance to limit the tax impact on the average value home while also staying true to the broader sense outlined in our strategic priorities. These priority or these priorities which have the county focusing on maximizing taxpayer value, maintaining critical infrastructure and strengthening our workforce serve as a foundation for thoughtful future budgeting along with the AAA or the double A the excuse me the AAA rating. Uh we help ensure that every financial decision supports Carver County and its residents and I personally agree with administrator Hemsy about sticking to the plan and having the sound budget as we continue to invest in our employees and our infrastructure. We are headed in the right direction and just we continue to make Carver County a safe, great place to live, work, and raise a family. And with that comment, I'll make a motion to approve the 2026 budget and levy resolutions as stated in our packet. >> Thank you. All right. Well, we have a motion. Is there a second? I'll second. >> Okay, I got a second by Commissioner Anderson. Further discussion? >> Commissioner Herman. >> Well, Mr. Chair, I like to make it clear when I vote no if this is uh we're going to stay on the line why I vote no. Um the easy thing to do would be go with the majority and and vote for this. But when I ran, I promised constituents I would manage to a lower tax rate. Um this would defy that and that tax rate would go up. Um I think that there's some really good things in this budget. I think that Carver County is responsibly looking out um at the 20-year budget or the 20-y year replacement costs in a way they've never done before with the 662 building and I know that creates consternation and challenges and all the other things. I think it's the right thing to do. In contrast, there's one of the Carver County cities that decided not to budget for it and then they pushed that along in the form of tax. They did a nice job of explaining that, but the result was five consecutive years of double digit tax increases to the the voters and I I think that's just too much. Um, I think anybody that's ever heard me speak knows the reason I do this is for my kids and grandkids so they have a chance to live here in the future and yours as well. And I think that if we continue down the trajectory of not drawing the line in the sand and saying we're not going to increase tax rate, it'll continue to creep up and creep up and creep up. We already know that we're one of the most unaffordable places to live. Median house value next year will tip over half a million dollars. That means that a first-time school teacher that doesn't have significant funds from a family member or somebody that's joining them as a roommate can't afford to live here. That means that our first-time sheriff's deputies or some people that work um on our staff, they they simply either have to live west or not in our county. And I and I think that the buck has to stop with us. But if I go back to some of the positive things, not only budgeting for the future, last year versus uh this p this year, we saw a decrease in um health care costs on a family plan. I think on average savings of about 400,000 $4,000 per family. That's real money and that's money that we can uh that's that's real in their pockets. Um the HR team did a really ER team did a really good job of proposing a new um um uh band so that people could buy into a high deductible plan at massive rates. People switched to that plan and they saw savings to be had there. Um this budget covers a 7% increase. I don't think we've seen that ever. Um and that's historic and that's really good stuff. Um but we are covering for the state and if you don't like Trump, you're probably blaming the federal government. If you don't like walls, you're probably playing the state government. But we are absorbing at least 2% increase this year, a 4% next year, and then 6% the year after. We can say no by saying we're not going to do that. We're going to find other areas. We know that there's uh one area that is estimated to probably cost taxpayers over $15 million over the course of the next decade in loss. That's not our responsibility to do. And if we say yes to this budget, we're saying yes to more of those shifts. Next year will be even more. Undoubtedly, nobody's even even tried to def refute that. Um, we also know that we're if we fund this budget, we're funding a surplus generating entity that over the last five years has had record attendance and record dollars. And I just don't think it's right to continue to fund it at $100,000 a year um for a surplus generating entity. Um, when we've got staff that are that are people are short staffed and we know that there's money to be had. And so I think there's responsible ways to go about this. Um, and I think that there's a lot of responsibility within this, but I think 8% is too high. And I'll tell you why. $ 28 billion base um increased 6%. Our levy is going to increase 8%. That means that math is simple math that our levy will go up um next year. And I don't think that anybody on this board promised that when we went out and ran. We said we're going to manage to a lower tax rate and lower those things. I also think it pinches that m missing metal that we have. If we're going to attract new businesses, which I think we should spend more time trying to figure out a way to attract businesses, we're spending a lot of time on the defense. And I think that Tom, myself, and the people that were part of the legislative priorities and contri contributions there, we were looking at a 20% number just six months ago. Um, so that 20% number has significantly come down, but next year we're looking at d potentially double digits. So if this passes, I'd plead with the board that we put a stop gap in there to say the max levy for each of the next three years would not exceed 8% each of the year in 27, 28, and 29 and manage that budget. And then last thing is I wanted I want um um I talked to a number of staff. Um, if you're experiencing the pinch of having open wrecks or navigating this budget cycle, know that we're trying to balance um what's right for the community and what's right for you. And there is going to be some pain in this. And most of that pain, I think, is coming as shifts um this year, next year, and the year after. And so, um, we we're willing to field those questions, but I think that there's a lot of pain being felt on the front lines that sometimes we don't recognize because we're trying to figure out how to balance those things and we can't just continue to pass along to the 116,000 residents or the 738 staff. We got to make hard decisions and some of those shifts we're feeling in the front lines. We're having hard conversations about library. We're having hard conversations with staffing in HHS. We're having other hard conversations and so those aren't taken lightly. But my commitment to the voter was to to reduce this. I've always been a three and a half percent guy that allows us to scrape off all the growth that we have and m maintain that we don't have an increased tax base. So that's the reason I'm going to be voting no today. Thanks, >> Commissioner Lynch. >> Uh Mr. Chair, I plan on supporting this. I um it's very difficult to fathom the cost shifts and I imagine it's very difficult for you as the former former legislator uh to see what the the state is actually shifting to us and uh you've been managing this for quite some time. I think this is u uh the best budget possible. I think that uh I always go back to the uh proper planning and preparation prevent poor performance. I think that uh Dave Dave and Mary Kay have done a wonderful job uh managing not only for our our 602 building. Uh it needs to be replaced and um I hope everyone can take the personal tour to know why it needs to be replaced. I think we all have um so we're planning for that but then we got blindsided by the cost shifts shifting to us. So anyway, I plan on supporting this, Mr. Chair. >> Okay. [clears throat and cough] Well, Commissioner Anderson, >> one more comment. Um, I it's never easy doing this, but I want to thank all of you that are in the room. I know all the division directors are in the room um and other employees and um and I know the amount of work that goes into this and um and I want to thank Administrator Hensey and I want to thank Mr. Freshman for and Mary Kay and all of you for all the work you put in to this. I also want to point out that um we did have a $1 million levy adjustment that went down. We did look at cutting the base of this budget by a million dollars which is a 1.4% decrease um that that could have been. So even though we are raising the levy at this moment of those taxes, um again 6% of that is honoring the commitment we've made to our employees. Um through those union negotiations and 2% of this is kind of out of our control. Um but you all did roll up your sleeves and get to work and find ways to reduce this and be more efficient as as a county. And I do not want that lost on the people in this room and our taxpayers that Carver County is doing the best they can to to manage this levy and to to manage the impact on the taxpayer and we'll continue to do that in the future. So I did second the motion and I will be supporting this. >> Okay. And also thank you to staff and Dave and Dave and Mary Kay and everybody in the room. And um this is uh this was not an easy budget. Uh we still don't know a lot of what is going to be happening out there. Um [clears throat] it's it's a warning budget for what is to come. If you supported the 2023 legislative budget and the 2025 legislative budgets of our legislature, you are sticking it to the property taxpayer. It's as simple as that. So, the legislature has another opportunity coming up in February to May to do the right thing and not shift their budget problems down to the property taxpayers of every county in this state. Not only did they do that, they've passed gas tax increases, sales tax increases, tab fee increases, you name it. our tab fees where don't we wish Jesse Ventura was back and I was the chairman of the transportation committee then and we lowered the tab fees uh which is a horrible burden on on people getting a a big bill from the state of Minnesota to drive their car and not even good cars anymore. So, uh it was uh the number eight doesn't sit well with me. The number six is much better. the states done it to us and they're going to do it even worse. So stay tuned, pay attention. We'll be at this our budget for 2027 early. Um uh but we'll be monitoring the legislature and our legislators to find out how they're going to going to vote. So with that, we have a motion and a second to approve the WO in here too, right? >> Yes, sir. >> To approve the county tax levy, the county budget, the WO tax levy, and the WO, I'm sorry, that's the uh water water management organization uh budget. >> Mr. Mr. Chair, do we uh wrap the 27 long-term plan in there or you want to do that separately? >> Good question. >> What does the motion maker wish? >> I'm okay, Mr. Chair, adding that in the motion. >> Okay. >> And I'm okay. >> Okay. So, we're going to do it all. That includes item 3.3 on here, right? >> Is that what he we did? >> Second item on the screen. >> Yeah. >> Yes, >> they are, too. >> Okay. So, it's it's the administrator's recommended Carver County 2026 levy and budget and the administrator's recommended 2027 long-term financial plan. All right. Hearing no other discussion, all those in favor say I. I. >> Those opposed? I >> motion passes. >> Thank you, Mr. Chair and members. >> Thank you very much, Davids. Uh let's take a brief break. Thank you. [snorts] Okay, we're ready to get back at it here. Uh, Commissioner Lynch, do you >> I'd like to recess as a county board and convene as a regional rail authority. All right, Commissioner Lynch has made a motion to recess as the county board and convene as the regional rail authority and Commissioner Fehey has second that. Any discussion? Hearing none, all those in favor say I. >> I. Those opposed. Motion passes. Administrators recommended regional rail authority 2026 levy and budget. Mr. Lynen Robent. >> Morning Mr. Chair, commissioners. First of all, thank you so much for your support on the county budget. I know it's not easy, but we appreciate uh all you do for us. Uh so this item here before you is uh the recommend county administrator's recommendation as you mentioned, Mr. Chair, for the Carver County Regional Rail Authority 2026 budget. He is recommending a 2026 levy of 240,292. That is a 6% increase from 2022 and a total budget of 24292. Um out of that um we pay for personnel FTEEs at around $169,449. The remaining 72,843 goes to stewardship costs for our regional rail corridors. Um the bit the larger capital projects are paid for by other funding that we have in the regional rail account. Um if you recall the sale of a couple of our car of our former UP rail line, we got a grant from the Met Council which infused some funding into the regional rail fund that we're going to use for the larger capital projects. So with that, um the motion before you there, Mr. Chair, is in the packet. Uh if you have any questions for me. >> Okay. Any discussion or [snorts] motion? >> Move approval. Mr. Chair. >> Second. >> Have a motion by Lynch and a second by Fehee to adopt the regional rail authorities 2026 levy of $240,292 and a 2026 budget of $242,292. Any discussion? Hearing none. All those in favor say I. I. >> Those opposed. Motion passes. >> Thank you, Mr. Chair. Um, the next item is to uh [snorts] uh reconsider or I'm sorry, re reapprove or renew a permit on the Dakota Regional Rail Authority corridor. I think Sam's going to briefly talk about this one. And we've got Scott Wakefield. >> That's a question. >> Static. forward to it. >> You okay? >> Static. >> That got me good. I'm not going to touch it anymore. Good morning, >> Mr. Chair and members. Thanks for your time. Uh, yes. As >> that's not static. We actually wired it like that. [laughter] >> That's direct direct current. >> I get it. Okay. >> Jeez. >> As as Lynon mentioned, a renewal request for a special use permit by the Southwest uh trail snow trail association. Scott is here if there's any questions specifically about the request to use the Dakota rail from essentially the county line on the west side through New Germany and into their larger system throughout the county. This is the second year that we uh that they've requested a permit last year of course uh issued but not a heck of a lot of snow. So really this would be I'll say at this point seeing some good snow out there the first year of of utilization of this connection to their system. um as county policy with our use permits on the parks and recreation side an ordinance there again running this through the regional rare authority similarly to that. So that's why we're seeking your authorization to issue the permit much like we do with our park and recreation special use permit. So I'll keep it simple. Um it's a renewal and typically run as a consent if it wasn't for the regional air authority uh Jenna not having consent portion. So I don't know Scott if you want to add to that if there's questions at all for myself or Scott. So, >> so if we if we can uh I got my 2020 trail map here. >> Oh, by the way, we're updating those. [laughter] >> Okay. I always throw a buck buck in the box. >> Yeah, there's been a lot of changes since then. >> No, it's five bucks. >> Just No, it's it's a free will. Whatever you want to put in. >> Okay. Do I have to get out to a bar out there to find one of these? >> I could probably send one to your drop. >> N don't worry about that. But I like to see where you guys are going. But what what specifically does this permit do for the average snowball dealer? >> Well, allows I can take that one. Allows our members and uh other people in Macau County to come into Carver County. So, it's really the only way to get into Carver County. So, when at the park board, I've been one of your park board members said, "We really should be promoting this more because we're bringing more transportation or tourist dollars into Carver County from Mloud County." Consequently, it can also go back into Mloud County, too. So, it's a connection between the two counties which is pivotal when it comes to trails. >> So, um um where So, they can use the regional the paved regional trail. >> Correct. Yes. >> Okay. So, we're where I haven't heard the term studded tracks or anything. And >> not allowed. Uh not allowed specifically on this trail. And we spent over $4,500 in new signage required by the park board that says no studs allowed on this trail. So, Mr. Chair, if I can, Scott's answer was was spot on. What what the what this permit allows the trail association to do is to use the Dakota rail corridor, which by ordinance does not allow any motorized use on those corridors. So, this is really the only example today where this use is allowed. That's why the permanent course is required. And as Scott mentioned, it's is it was a gap in their system bringing people from Mloud County into Carver County or vice versa. And this moves them along the Dakota Rail to New Germany and then into their larger system. >> Yeah. >> Excellent. >> Sam, just a a question. Are we going to have to continue to do this annually? >> Yeah, the intent but unless the board has other interest or again maybe we can find a more efficient way. Typically, we issue our use permits on an annual basis, opportunity to kind of revisit things, make sure things are in good order, changes, what have you. That's worked pretty good. Again, similar to our park and wreck uh you know, permits that are issued on that side, we do those typically annually. Thank you. And just as a a member of the Carver County Snowrunners, I think I've been a member now for 35 years or 33 years. >> Long time. >> And in 23 and 24 I had the opportunity to help to mark this trail. And uh this year I was not out on that trail, but on the southern part of the county working on various trails. And so I'll make a motion, Mr. chair to authorize the issuance of a special use permit to the Southwest Trail Association uh through the Dakota Rail Trail in New Germany for the 25 and 26 winter season. >> Second. >> All right, we got a motion as stated by Commissioner Fehee and second by Commissioner Udman. Any further discussion? If I could, I just like to comment uh how much work actually goes into this and how much all the staking, the flagging, uh Commissioner Fee talked about it, but the the planning just to get this. Scott uh uh spent countless hours to get this done. It's so it's um it's a wonderful benefit. So, hats off to you, sir. >> Thank you very much. >> Commissioner, Scott, do you get a chance uh sense of how many people ride that are members or non-members? Can anybody ride? And then how many people you think come into our county um numbers or mix? >> Well, last year was, you know, as Sam said, was a horrible year, but we did have at least a dozen people from Mloud County come through um because I checked with a couple of places and I'm like, how did you get here? It's like, well, it wasn't the easiest thing and it was very costly because it did damage to their snowmobiles to get here. But we did have a couple dozen. But if we have a good year, oh, we could have 150 to 200 every weekend. And that's where your park board member, you know, got to the point where she was thinking we should do a better job. We get decent snowfall consistently [snorts] to promote it to have the two counties work together. And Mloud County, they're extremely excited about having Carver County people come this way going into their county. So they their board approved it unanimously and wholeheartedly. So So it's a good collaboration between the two counties, I think. And it's been without any complaints. Uh, I go to the township meetings. I go to the city meetings. Like Commissioner Lynch said, it's a lot of work. Not just physical work, but a lot of timing and going to all these meetings and getting on their schedules. And we haven't had any complaints because we haven't had a lot of snow. But hopefully, knock on wood, we get a lot of snow. We don't have a lot of complaints. So, >> not only the meetings, but then you also talk to land owners, too. So, >> Right. Yeah. one-on-one. If we have a reroute or somebody changes or there's a change in ownership of land, you know, we got to do a reroute or we got to work with the trust. If it comes out of an individual's name and goes into a trust, we got to get the trustees to sign the permits. And we're right now we're going through a DNR audit. So, our whole trail system, which is 113 miles in Carver County, out of that 87 is funded. The rest is not funded um because the DNR is not taking any more uh trails on because they can't afford it, they say. But uh we got have to we got to do reroutes. We got we got a DNR audit. Like I said, they went in and did a biopsy of the land owners basically. And if we had a permit that was current, that was great. Well, some of these permits were signed 30 years ago, you know, and so they changed ownership and land. So we got nicked on a couple of them, but we we've worked it out and we're making that submission to the DNR on Friday and we'll pass. We'll be fine. But >> one more one [clears throat and snorts] more question. I I'm not a snowmoiler, but um what am I supposed to do? >> You want to come out and ride? I mean, >> well, yeah, I'll ride with you. >> Yeah. >> On the back. >> I got a spare. No, you're not riding on the back. [laughter] >> That's not homie. Don't play that. So, >> thank you. >> But as you're riding, as you're driving down the road and you see, you know, top of a snowmobile trying to cross the road, are you supposed to stop? Are you supposed to keep going? What's What's protocol? >> Well, depends. Um, if it's just a private driveway, that can be a yield, but if it's a major intersection, it's got to be a stop. So, and then that's why we put the stop aheads and the stop signs. And then I do a seminar all over the state of Minnesota on proper signage based on international standards. Like how far does that stop ahead sign go to the [snorts] stop sign in relation to the terrain that you're dealing with. So if you're coming out of a woods and you're going 10 miles an hour, that stop sign stop ahead could be relatively closer to the stop sign. Now we're driving the road ditches in Thie River Falls, Minnesota where you can't see the thing all the way to Hock and you're driving 80 miles an hour. You need to get that stop ahead sign way out there in advance. So, so yeah, I do I Yeah, I they're marked. We do a good job. >> Do they wear helmets? I'm sorry to jump. >> Yes. Okay. Sorry. >> I've also sold a safety training instructor at DNR and volunteer for the DNR for 30 years. So, yes, you're required to wear a helmet in the state of Minnesota. >> Okay. >> Uh very very difficult to not wear a helmet snowmobiling. you wouldn't last very long. I don't know if grandma's knit hat would keep you on [laughter] >> 80% of your heat goes on your head, right? So, >> I uh I grew up with them. I enjoy them. Uh it sounds like you guys are really doing a great job. I remember going out with a group, a local group from Chanhassen and riding across [snorts] >> Prince's Land off of the day off of Lake uh >> an >> Lucy >> Lucy. Uh and uh but so that tells you how long ago that was. And uh but uh but anyway, any other discussion? We do have a motion. Thank you for your >> once a year chat here. >> Um but seeing no other discussion, the motion is we made a motion and a second on the special permit. All those in favor say I. I. >> Those [clears throat] opposed. Motion passes. Thank you very much. and Commissioner Lynch. >> Mr. Chair, I'll make the motion to adjurnn as a regional rail authority and reconvene as a county board. But I do have a question on that. Um couldn't uh the only thing we have left is the administrator report. Couldn't the administrator address the uh regional rail authority? >> That'd be a first. >> I'll second his motion, Mr. Chair. >> All right. I got a second and a motion to adjurnn as the regional rail authority and reconvene as the county board. Any discussion on that hearing? None. All those in favor say I. >> Those [clears throat] opposed. >> Motion passes. County administrator report. >> Thank you, Mr. Chair. I appreciate how much Commissioner Lynch looks forward to my report. [laughter] >> Uh, as you saw the big news, uh, MCIT County of the year is Carver County. So, congrats to the that's a big team working on that, but Sony of course >> leads the charge along with Carrie. Um, so that that's good stuff. And, uh, we got you on the invite to the, uh, ceremony. So, AMC conference starts Sunday, I think it officially starts. >> Is that on Tuesday? >> It uh, the >> Yes, Tuesday lunch. >> So, hope to see you there. Uh, make sure you RSVP. They they're looking I think they got us at a special table. >> So that >> Yeah, everybody. >> Yeah. >> Oh, good. Okay. See you there. >> So, that's good stuff. And then yeah, that runs Sunday to Wednesday. And then I also wanted to mention a legislative breakfast. I'm not sure how accurate this is, but the calendar invite says Carter, Nash, Gunhagen, and Coleman have said yes. >> Coleman. >> Okay. I'll have I'll have Chris double check that. give you the RSVP and then we usually have to work over those that haven't responded a little bit to help with that be appreciated. Usually we don't get our federal reps to attend once in once in a while. It doesn't sound like they were going to be here but that's an important one obviously with the backdrop of the what's going on at the capital. >> Do we want to invite the new mind person >> council >> met council person >> or met councils? Uh, I suppose we could. We haven't. >> Is that person's name? >> Uh, >> Hutchin. Hutchin. >> Hutchinson. >> Hutchin. >> Hutchinson. >> Hutchkins. Not Hutchinson. >> Yeah, I think it's Hutchkins. I think you're right. >> Uh, we certainly could if you want to do that. We typically invite the >> Just a thought, David. It's not critical, but we got to get to know that sooner or later. >> This Wednesday, she is going to be installed at the Met Council meeting. I need to be in and around Minneapolis and St. Paul, I think Micah is down there, right? >> Next Wednesday. >> Okay. Um I've got to be in Minneapolis for a five o'clock and go for basketball at 6 and but um I thought she was getting installed this Wednesday at like 4. So I might be there just to see because I don't have to be down there anyway. So >> Well, that'd be good. >> I know they had an effort in place to come out and they did. I remember Ryan Okconor as a former Ramsey County administrator came out as a staff representative or was the interim I don't remember. Uh anyway, I know they've been, you know, intentional about doing more outreach. That might be better to get her into the boardroom. >> So, I'll uh I'll connect with Ryan since I know him pretty well. >> Okay. And uh the legislative committee, by the way, has met with every every one of our legislators, local or state, I should say. Uh and we still have Deb Barber, our Met Council rep. We're going to I think we are close to getting that held down. So, you know, pretty significant effort going on, but that legislative breakfast is a pretty key meeting for us. So, that's all I have, Mr. Chair. Robin Hutcherson oath of office uh this Wednesday the 3 at 4 pm at the Met Council >> Hutchinson >> Hutcha Hutcherson >> Hutch not no end in the middle there. Um so maybe I'll I'll RSVP to that because I'll be available soon. >> Reminder, she owes us some money on my behalf. >> Thank you. That's all I have. Mr. >> Motion to adjurnn. So move, Mr. Chair. >> Second. >> A motion by Lynch and a second by Uderman to adjourn our regular session. Hearing no other discussion. All those in favor say I. I. >> Those opposed. Motion passes. >> We arejoured. Thank you.