for the pledge of allegiance. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> All right. Thank you for that. Welcome to this Carver County Board of Commissioners September 2nd meeting. Uh public comments. Is there anybody in the room? Uh >> the public >> on an issue that we're not going to be on the agenda? You can sit or stand. >> Sure. Do I use this >> right here? Podium's better. >> Oh, okay. >> And if you just introduce yourself and maybe tell us where you're from. >> Okay. Um good morning everybody. Thank you for having me here and um for the invite by Matthew. I appreciate it. My name is Alicia Grunhagen and um I am here because I'm running for United States Senate. I just wanted to come and listen to what's going on with Carver County and meet you guys and um hear about what you're looking for in representation and what you think is um really needed, what some of the biggest issues are right now for tax code and other things um in Minnesota. So my dad is state I wonder if this thing can hear me if I back up. Um my my dad is >> he'll pick you up. >> Okay. Um is state senator Glenn Grunhagen and um he is um representing part of Carver County and so I've been in the background of policym for about the last 15 years at the capital and then as many people will tell you 16 years before that. Um well he was on the school board and watching it. So I've always kind of been in the background. Um, but I ran for US Senate last year and it seemed like um there was people that felt they knew who the candidate was. So I kind of took a back step. I didn't run for endorsement and this year um I was at I guess last year I was at the RNC in Milwaukee when Trump came and spoke to Republicans and um they asked me they said next year would you please just present yourself um before the delegates? And so um so I just recognize that we need voices and we need leadership for um our state and I believe I've been just recently I was at um 33 county fairs. I went across a tour of um Minnesota fairs and as I went to each of the fairs I was really surprised that um I was really surprised how many people said I said are you ready to flip Minnesota red? And I was so surprised how many people said it's far past time. And um I know that when we're each in our individual counties and areas um districts and areas, it can seem like it's very um like it's very discouraging because Minnesota has been um Democrat for so long. And the problem with that, of course, is that it doesn't seem like that side of the aisle is as concerned um with fiscal issues. and to be honest, not as concerned with what the average voter feels is important in terms of faith and family. And so um and so I just wanted to um share that with you because I think it breathes hope into us as we're thinking about the issues that um hopefully I would say Carver County leans pretty conservative and so um a lot of the matters that that would be on our minds and hearts um to keep a a community healthy and safe and strong financially too and um also a place where people can come and sometimes maybe even recover from from a difficult place in life because we all know that anybody can fall on difficult times and we want to be able to help them but also do it in a way that doesn't abuse tax dollars and doesn't um it takes into consideration you know the the population here too and what their feelings are and things and so so um I think that it is we're getting closer and closer to flipping Minnesota red and so I've been just traveling around talking with different counties and um and really in a way energizing the space. And so if there's anything that um you guys would like to share with me today about what some of the key concerns or some of maybe the special uh difficulties you may have noticed or things that have come up based on the people in your district, I would love to hear from them. Otherwise too, you can contact me um and keep in touch. Uh just on this campaign trail, a lot of it is about listening to people and hearing from people what they feel they need in a voice um in Washington. But I believe that it is more than possible to flip Minnesota red in 2026. And of course, that's the shorthand version for saying it is time for more common sense conservative principles to be representing our state. Um, and so you all know too, we've taken our state from an $18 billion surplus to a $6 billion deficit with walls. And that's more at the state level, but at the same time raised taxes $10 billion. And we need to ret return to common sense and restore some order in Minnesota. Minnesota is so such an important state across the nation too. And look at how we affected in 2020. Look at how we affected the whole nation with what happened here. And so um in order to look at that was it was such a crisis and it brought so much division across our land the um whole thing with George Floyd and then it spread across all of America. And so we've had some wins in recent years. I would say the case with Trooper Landrean where we actually got behind our law enforcement in Minnesota and we turned that case over. We've had some wins since then and we continue we can continue to show America what it looks like to govern wisely starting in Minnesota. I really believe that we can and we have a strong voice here. And so, um, anyway, so I welcome your your feedback and I welcome your thoughts and just your encouragement on what issues you want to hear more about. Um, I think that's probably a good introduction and I would be happy to come back here at another time too to share more about campaigning across Minnesota. And so, does anyone have any other feedback for me right now? >> During this session, we don't traditionally have a back and forth. Okay. Um, we appreciate your coming down here and we had a nice chat prior to the meeting and uh we have your information and uh all the best of luck. >> Thank you so much. Yes, it's it's a blessing to be here. So, thank you for your time. God bless you guys. >> Stay dry. >> Thank you. >> Okay. Thank you. >> Okay. Agenda review and adoption. So, we had a little bit of email traffic over the weekend about item 2.8 8 to remove an item off the consent agenda uh involving vacant land purchase agreement with the city of Chanhassen that is no longer needed. So the consent the consent agenda will be as is. >> I move approval with the adjustment of the proposed uh amendment >> without the proposal >> without the well yes. >> Okay. Got a motion by Uterman and a second by Lynch to approve the agenda. Any discussion hearing? None. >> Roll call. >> Oh, that's right. Roll call. >> Okay. Roll call. Anderson. >> Yes. >> Yes. >> Lynch. >> I. >> Lutderman. >> Hi. >> Workman. >> I. And I would mention at this time that uh taking advantage of a new state law on open meetings, uh, Commissioner Anderson has extended her weekend with her 91year-old mother in Nebraska today. She is visiting us all the way from Nebraska who will lose at uh Huntington Bank Stadium this later this fall. >> So, welcome Anderson. >> I'm grateful to have this opportunity to be there virtually. >> Uh okay. Item 1.4 approve August 19, 2025 minutes. >> So moved. >> So moved. Second. >> Okay. We got a motion by Fehee and a second by Anderson to approve the August 19th, 2025 minutes. Any discussion on that? Hearing none, we'll take a roll call. >> Fehee, >> I. >> Lynch, >> I. >> Lutterman, >> I. >> Workman. >> I. >> Anderson. >> I. >> Okay. Community announcements. >> As you know, if Mr. Mr. Chair, as you know, I'm a huge wrestling fan, and I'd like to say that uh I've been following the career of Max Mali from Waconius. Uh he won four uh state titles. He placed third in the NCAA's and he just won the worlds uh the 20 and under worlds. He was a world champion and uh from Wakonia, from Carver County, and uh we can now say that uh a world champion is now from Carver County. It's just absolutely wonderful to watch his career. Wasn't he signing autographs somewhere? >> I believe he was. And they had a w big welcome home for him. He's just the nicest guy to him. So, it's really really fun to watch. >> He reminds me of uh me. So, I know. [Laughter] >> Commissioner F. >> Mr. Chair, just a reminder that school has started. Please be safe and watch out for the kids and watch out for all the school buses. Also just wanted to mention the Stiffton Fest couple of weeks ago. A huge success. Just a big thank you to all the volunteers and the NYA Fire Department. Uh great job. And then this weekend is Steamboat Days in downtown Carver. So come and visit. Enjoy the charm, the people, and the entertainment in the city of Carver this weekend. That's all I have, sir. >> Great. Very good. Commissioner Udman. >> Mr. Chair, thanks for accommodating. Uh, we started a little bit later today cuz my kids got on a bus today. Appreciate you making that accommodation. Um, and school's on my mind, too. First day of school for a lot of people. Others have gone back sooner. I know Southwest Christian Holy Family started a couple weeks ago. Uh, I know Wakone, I think, is starting today as well. Um, I'd be remiss if I didn't just take a moment um to to to recognize what happened at Annunciation earlier last week. I had a chance to go by there and and see the aftermath. But today, I think they announced 21 total victims. uh 18 children between the ages of six and 15 um and three adults over the age of 80. Um so the um prayers and and and actions go out to Fletcher and his family and Harper. And it really hit home for me. My kids have a a teammate named Harper and she's 10 years old. And so when they announced uh that Harper was 10, it really really hit home. And I know that there's a lot of people in local politics, state politics, people that are um looking at the federal level um that like to talk about this stuff. Um but there's very few people that actually bring actual solutions. And so I think that we have a role in that and I'd like to elevate our HHS team. We've addressed mental health in a number of ways. We've addressed um things from a safety with firearms and other things at our building and that are happening. So just wanted to elevate our staff in that and recognize those who were impacted uh immediately and then and then the community beyond that. Um also with the first day of school, um Superintendent Raky always reads a book. So her book this year was Princess Cupcake Jones Won't Go to School. And so it was uh fun to see her present that. A lot of challenges at the district. um not just on trying to get the buses to and from school um but also with referendum coming up and as we talk as a community uh of what higher taxes and costs mean for our district and affordability and all those things. A lot of big conversations. So um kudos to uh Superintendent Readki for putting herself out there listening and responding to the needs of the community. Commissioner Workman and myself had a chance to go to the environmental center in Shakape uh later last week. big education firsthand. A lot of conversation and uh those services are available to people in Carver County. Um Commissioner Workman knows infinitely more than almost anybody on this board when it comes to environmental services, trash, or anything close to there given his past careers. Um and so I was enlightened and learned and I think it's a great resource for for our community members. Um and that we didn't have to site it within our own community or pay for it. And so those services are available. Took the opportunity to take a brief tour of town on Saturday. Um uh size is under new ownership. We have a new restaurant that was the former uh uh cousins at Southern Social and then Rouge 41. Um and to be out and about, it seemed like every conversation we had was touching on um tax fatigue among our uh people within our community, but also an excitement about the community that we live in. And so if you can balance both of those things, um people were out and about, they were spending, they were excited about the safety of Carver County, the growth of Carver County, but also concerns about what looks um around the corner in 26, 27, and 28. Uh zipped up to the loop. Um, I didn't realize this until a number of years ago, but in Carver County, we have more holes of golf per uh square mile than anybody else in the state other than Ramsey County, which is kind of cool when you live in Carver County. We've got Hazelton here, we've got the Loop here, we've got Deer Run here, we've got a bunch of other courses. Very quality courses and people are finding Carver County by a lot of different ways. Golf is one of them. Um, I mentioned, I think last week, uh, that Stevie Ray had reached out, suggested a book that he was voicing. Got a chance to spend some time with him. If you don't know Stevie, I think it's like the third or fourth longest comedy club in the metro that's in the basement of the dinner theater. He also does leadership development training and he shared some insights as to how he um navigates that space in his last 30 years of career and so there might be an opportunity to partner with him in the future. I know a number of board members have had passion about a path to leadership, leadership development, talent pipeline in an unorthodox way. Um and he's been willing to partner in that those regards. Um couple more things and then I'll be done. elated to have spent some time with a friend who's uh kids going to participate in the children's entrepreneurial market at um the Mustard Seed on August 18th. And for those that aren't familiar with this, there's uh nine different sites across the metro um throughout the fall where children get to pop up a standup business, if you will. And so I just asked my 10-year-old, is it something you would be interested in? And the words weren't even out of my mouth until she was starting to think about what she was going to sell. And so my kid will be there. Um there'll be others in the community, too. But man, the talent pipeline starts with kids in these grades um investing their skills and talents and I hope that her and others will be future entrepreneurs. Everybody's welcome to come 1018 at the Mustard Seed in Carver County. And then um finally, the road construction projects. I don't think anybody um can miss those. That's the most robust half decade of road construction projects in our in our um um county's history. Um I think that today it kind of heightens why sometimes we have delays with all the rain that's coming down and um the challenges and the complexities but Pioneer and 11 did open up. It's beautiful. It's wonderful. Um there's some challenges with that with an under underground spring that they had to navigate and a lot of things. 41 is a pain for all the people, but it'll be open um probably in the next three or four weeks um God willing. And uh we know that there's challenges, but I think collectively the board did the right thing to kind of rip the band-aid off and do the projects more in a short period of time, use the money at the local and the state and the federal level to get these things done. And if we look out a couple months, I think we're going to see a county that um invested in our future and our growth and and once we get through these some of these lumps, we'll be in great shape. So, thank you, Commissioner. >> Okay, Commissioner Anderson. >> Yes. Thank you. Um, the only thing I want to say is thank you to Darren Milky and his team for hosting uh a community meeting with the Park Ridge neighborhood about uh the the 41 and 10 project. Um, I also want to thank Kaylee Hagen who's been a great community partner. she was came um from district 112 and talked about their communications on. Um there's there's three schools in uh that area that that construction road construction has impacted and um they've been a great community partner and communicating please put your kid on a bus and for this first week and and how we can navigate that um school traffic and um how we can be good neighbors to uh that that neighborhood as well during that. So, um, thank you for that. Um, yes, we have a lot of road construction, but communication is the key to that. And, and again, I'm really grateful for Darren and his team and doing such a such a good job in communicating with our community. So, that's all I have. >> Okay. Thank you. Uh, I don't have a whole lot, but I am just reminded and perhaps Mr. objectent in the room. I did see on social media with our new beautiful intersection at Pioneer and 11 motorcyclists. Uh somebody may have slipped if it's a dusty residue left there if it needs to be swept. Uh perhaps Commissioner Behe might go out there with a broom. Uh but it seems maybe somebody is saying there's maybe a little bit of a problem out there. yourself. We could maybe have something look at it. So that's all I have. How about the consent agenda? >> Mr. Chair, I move the consent. >> Second. >> All right. I got a motion by Commissioner Lynch and a second by Commissioner Fehey for the consent agenda. Any further discussion? Seeing >> Mr. Chair, just one comment on 2.3. We talk about the loose line. This is I think the second time in a month that we've had something in here related to Agra tourism. We are in the agura business and I think we can pave the way for more of that. When we're talking about budget and we have a number of people in the room today talking about budget sometimes we fail to realize sometimes the solutions on the revenue side and I think agra tourism tourism economic development are part of those and so I just wanted to call that out. It's fully in support of of the consent and two 2.3 by the form of loose line. I think we need to do more of it. Thanks. >> Sounds good. Okay. Any further discussion on the consent agenda? Seeing none, let's take the roll call. Lynch. >> Hi, >> Woodman. >> Hi, >> Workman. >> I >> Anderson, >> I >> The motion passes. And I might add, uh, we're doing the roll call because Commissioner Anderson is not physically present with us and so we have to by law do that if you, anybody was curious about that. Okay. Item 3.1, preliminary Carver County 2026 levy and budget. >> Yes. Uh good morning, Mr. Chair, board members. Dave M, the county administrator. A pretty critical step in our 2026 budgetary process. Today, I'm going to ask that you adopt the preliminary levy. And to clarify, we're talking about county taxes, of course, only. Uh the preliminary levy is the ceiling. you can bring that down up to and through December where we'll ask you to adopt the final and uh Dave Persman our finance director will be assisting me in the presentation today. I'll give a high level overview executive summary and talking a little bit about our legislative issues and then budget strategies. Dave will get into then the the meat of the budget and the long-term financial plan and then the calendar and then we'll ask you to adopt the preliminary levy. And by the way, thank you for for that back on calendaring that long process. We started back in the spring uh doing some strategic planning, talked about the related budget and uh worked definitely very closely with staff, division directors and others. So I'd like to thank them. I was I mentioned this you've seen this presentation of course just as recently as last week. I mentioned uh how critical it is to have those staff division directors and others because this this cycle I would say is as challenging as as any other and you'll see that in the the issues that are laid out at the high level which means uh we have to work harder on strategies coming up with solutions uh not only cutting but how can we change things how can we find revenue and that's built into the mixture here so we'll talk about that a little bit uh as we talk about the 26 2026 legislative impacts. I'll start with the good news and there is some and quite frequently as we come out of a session sometimes it's not about what happened it's about what didn't happen and in this case the first bullet point here good defense was played uh not only by the way with by us but there's always our partners other counties other cities our lobbyist Tony Albreight many others to to play this defense and we we literally avoided a $3 million uh I'll call it a raid of a transportation account. Uh that was good news. Uh the other good good piece of news is the county program aid CPA our revenue increase. That was a surprise to us due to the formula that's been set in place for many years mainly related to the folks that are staying in our car our county that are over 65 and then also supplemental food aid benefits. So that that formula uh came uh came out we came out a real big winner especially relative to others. So we were happy to see that. Again we'll take the good news and I think unfortunately it stops there as we look at these cost shifts and we'll talk a lot about that in this presentation. Uh starting with uh this didn't this occurred prior to 26. The paid family medical leave payroll tax that is literally a payroll tax that we need to account for. The amount is $400,000 starting in 26 and beyond that. And so many of these including that one will be advocating for changes to mitigate some of the impacts of those items. So there it is, you know, again in black and white. It's the actual bill that's going to start showing up for us. And then the big one, the bottom bullet point here, health and human services, state and federal cost shifts uh for 2026, that was $1.5 million that we're uh recommending covering in this budget cycle and beyond through a search charge, a 2% search charge. We'll find that as I move forward. So what about 27 and beyond? The the crystal ball is pretty fuzzy as we t as typically is. It's maybe a little however clear when some of these items I just mentioned are are in law. So, so it is clarified unless that law is changed what's going to happen in 2027 and beyond. And we'll put some of the uh the charts spreadsheets on in front of you as you've seen before. Uh so that that's to some degree helpful. Unfortunately, it is it is sort of that bad news that that needs to be covered and and unless that law is changed, we're going to have to cover those items. So, for 2027 and beyond, if you tally up, I had the 1.5 million, you add another 426, 2026, you're almost at 2 million, right? If you go to 26, 27, 28, that tally we have is 6.6 million overall. So significant or unprecedented cost shifts that occurred these past few sessions. And I mentioned the state budget, but it's also the federal budget with the the big beautiful bill and the impacts of that. Uh inflation and tariff cost impacts. Uh I would say relatively good news there. Inflation is moderating being mitigated. Uh there's some good news in in the tariffs. It's not as bad as perhaps many thought those tariffs would be. So, some again, we're always talking relative terms here. Relatively good news, but yet not necessarily decreasing, right? We still need to cover those items. Uh, similar property valuation trends. Dave will go through those in a second, but but again, sort of that moder that moderation of some spikes that occurred over the past decade or so. So, similar, you know, some of this isn't exactly 100% predictable, but we're seeing we're seeing similar trends occurring as we look into the future. Uh and then one of the big items as always is the continue continued expenditure pressures. Uh so on wages and benefits is always the biggest issue to cover in our budget and this uh 2026 and then 27 beyond is there's no change in that. Although we our contracts only go through 26. So 27 beyond is yet to be determined. But we're anticipating certainly pressures. We're hope we're hoping with the labor market changing that those will be moderated, but that's yet to be determined. And then as you noted, I'm sure in the in the budget request package, there are almost 25 unfilled uh the terms FTE full-time equivalent requests in 2026. And then beyond that and we've talked a lot about the Chesca Library and the potential impacts that would have because the build the buildings are built by the cities and we cover the staff the operations side and of course that takes uh librarians and others and we in in this budgetary package one of the big items that we're proposing is a shift in providing that service not necessarily cutting back on hours almost little ironic adding actually adding to the hours through electronic access is one of the more key points of the the budgetary recommendation. Uh facility needs finally a a significant budget pressure point into 27 and beyond. And of course, we've talked a lot about the need to uh build the government center project and 80 a proposed $82 million project that uh is built into the budget. This would be uh the proposed second year of a five-year financial plan each year setting aside $450,000 for the the need that for the need of a bond uh ultimately to cover the building costs. So, a lot more to come on all of those issues, Mr. Chair and board members, as we look at, well, okay, that those are the pressures, but what are we going to do about it? And what are our strategies? And these aren't these aren't uh brand new. We've talked about these over the past few months. Some of these are strategies we've implement in the implemented in the past and some of them are are new. This idea that we would actually identify and set aside this first bullet point set aside an actual 2% levy searchcharge uh to cover those long-term federal and state cost shifts. That's a new concept. I would say I would say it's a a clarification of communication really is what it comes down to that we're saying we're we're going to carve this out this new identifiable cost shift and really uh try and make sure everybody understands the the impact not only the impact of that but what does it take to cover that then so that that's built into the proposed levy that 2% would be on top of the the 6% recommend levy for a total of 8% and we'll again go through a little bit of a detail on exactly what ident what's identified in that 2% and then uh targeted se service level level caps reductions uh this is one of the most difficult components to the budget I would say and I'm sure you recall going through the exercise of what's mandated what's discretionary what's in between and as we do that and unravel things the vast majority of the things we do are ma are mand mandated. So, we're really focused in on those uh items that are discretionary or partially discretionary. That that makes it even more and more difficult as you boil this down to th those particular items because many of those of course are those popular items, politically popular or popular for our residents. So, it makes it even more difficult as we're talking about, well, how are we going to uh how are we going to look at those services and either come up with a different method of funding them or come up with maybe a cut or maybe some new revenue. So, it wasn't just one one uh angle on that particular exercise. Uh the third note here under targeted service items. That's a real important one because it is tempting as Dave will describe. There's roughly uh $5 million in our year our year-end savings account. So that's sort of a discret that last discretionary account. It is really tempting to dip into that account and apply them apply that dollar amount to many of these issues. So I always caution that be careful if they're ongoing. I wouldn't recommend that because ultimately you're going to have to pay for them the following year. So built into the the budget recommendations is is that thought in mind. And as I I've already noted, applying strategies to mitigate the impact. How can we not only just simply cut, but how can we change things? How can we reshape uh libraries? How can we change our communications staff to make sure they're covering prioritized duties like like public works road projects for example as compared to other issues? That's all built into the uh mixture here as we're talking about the recommendations and then a maintenance of capital financial plans. Uh again, it's pretty tempting to say, well, let's put push the government center down the road a bit here. we can survive another year without that 450,000 that would relieve the the levy pressure. Unfortunately, the problem isn't going away. So, one way or another, we're going to have to have to have to uh come up with a solution for that particular capital problem. And the recommendation is continue to continue down that path because it's not only about the government center, it's about the backlog and log jam of the other projects, the behavioral health side of things. for example, our first street center definitely in need of replacement. So, continuing to march forward and not uh and not delay these items. And that's not only about buildings, it's about road projects and other capital expenditures. And then finally, uh, the last set of strategies I have, I've mentioned this a number of times, but it is so critical and and really this this is one of the key areas where division directors have really proved their value as we're looking at the revenue opportunities. For example, if you you think about our schoolbased mental health services that are discretionary, there's rough there's roughly a million dollars in discretionary funds that are have been put aside to address school-based mental health. And boy, talk about something that's on the front page here and so critical, obviously identifi identifiably critical with with the recent school shootings, but it's there. It's present. I know it's a priority for the board. So instead of recommending a cut to that discretionary amount, Heather and her team went to work and came up with some some additional opport revenue opportunities uh to cover around $250,000 of that million dollars. So that's a great success story I think for you uh and others that that we can hold up in terms of this this budgetary recommendation and say we're not we're not just scaling things back, we're trying to do things differently. Uh personnel expenditures we've had for many many months here a soft hiring freeze in place not necessarily trying to accumulate funding although that's one of the side benefits but the real strategy the the real reason behind that strategy is to create opportunities and in the mixture uh you'll see those identifiably sprinkled through the recommendations the where uh for example we have some librarian vacancies where we're saying well we are going to cut those we're not necessarily going to cut hours but we're to reshift things so that we have uh same similar although different kinds of services offered but not at the same cost because of those positions but again very importantly those are vacant positions and not layoffs uh outsourcing another key component of the strategies that's in in the budgetary package I mentioned mental health our crisis team as you recall we uh we worked hard on uh moving that from uh county county uh county offered service to an outsource service through a private vendor. Uh that saved uh almost threequarters of a million, a little over that. Well, not quite. Uh that some of that was used last year, but several hundred,000 was saved. That's built into the package. And it wasn't easy of course to to make that conversion and it took time but a real solid in the end strategy that continued to offer those critical crisis services that in this recommendation a couple of personnel related recommendations offering a voluntary furlow package to those employees that may be interested. uh these both these items would be at supervisor approval to make sure that the work could still get done and then a 4-day work week. Both of which we'll work on the details as we move through the remainder of the year and try and identify then what what specific employee or employees would be interested so that we could clarify and solidify our financial projection. Right now in the budget we put a plug number was roughly $50,000. We think that there's potentially more savings that could be acred, but we're not sure. So, we want to roll that out and then we'll come back to you with an update that as the year progresses. And then other strategies that that you'll note as we move through the presentation. One final thing I'd mention as we look at the soft hiring freeze and the vacancies that are created. Uh, and certainly vacancies occur all the time in every organization. There's natural turnover that occurs that happens in every organization. And our objective isn't isn't certainly to increase our turnover. That's for sure. We want to mitigate or moderate that too. But I wanted to make sure you understood when you looked at uh this is a snapshot in time back in January. When you looked at the vacant positions that we had, we had roughly 55 full-time equivalent positions. If you added up the wages and benefits related to those p positions, it was $6.4 million, which seems like boy, that would be a great budgetary solution to grab a large a large portion of those positions and apply that to the budgetary problem until you start looking at the realities of taking out the uh the portion that is non levy related. So this this removes the non levy funding for example uh poling contracts coming that'd be city revenue so that's not general levy general property tax levy so that cuts it down significantly down to $2.5 million and then uh of course prioritization we should be looking at all these positions and saying boy are they board priorities and to me it it's relatively clear that some of your top priorities as we've mentioned already public safety, mental health. If you took those vacant positions out of the mixture, the number gets whittleled down further down to $1.4 million. Uh if you took out other priorities, uh engineering infrastructure related uh positions in our public works area, uh the number comes down to 1.1. And you also take out the positions that I've already recommended in the budget, it significantly reduces it obviously down to uh around a half a million dollars. And of that half million, by the way, there are positions that are be uh in the mixture here being uh there are uh uh job offers being extended. There are positions in the cycle. So really I've really looked hard at boy which ones could we really practically take in the end recommendation and you'll see that built into the mixture. So Mr. Chair, board members that's what I have at a high level. I'll have Dave then walk through the remainder. Feel free to jump in with questions if you have it. >> Thank you Dave. Dave Fishman, company and finance director. Good morning uh Mr. Chair and board members. Good to be here again. So, I'll start real real high level with the numbers. Uh, overall tax base trends. Um, you can see up there the our overall taxable market value in Carver County is now almost 24 billion. Uh, obviously big number. It's a 6% increase. That includes both value increases as well as new construction. Um, you can see that was 571 million. And the the key number for for our budget and levy is um the amount that's paid by the levy that could be paid by increasing the levy from new construction um without impacting the overall tax base. And that number is 2 million. So we can increase our levy by 2 million. First two million you increase your levy is going to be paid for by new construction. uh breaking that down into the average value increases on the different property types, you can see the egg property increased almost 6%, residential for commercial, well, it's actually negative. Um, and the key the key to that is uh regardless of what the county board does with the levy, regardless what we do with county spending, there's going to be a tax burden shift um from the uh agriculture to the uh from commercial to a residential because of the value. So behind the scenes these values change and then that um uh either increases the tax burden or decreases the tax burden. terms of the budget summary, I have the the I have the two previous years on here, 20 25 and 24 along with the 26, which is the administrator's recommended budget. And we do that just to provide some context to see um how these numbers compare to previous years. And you can see the top line Dave mentioned that the his recommendation is a 8% increase in levy. That's a 6% increase on the base level, which is comparable to the 6.8% 8% that we had the pre two previous years as well as the 2% legislative impacts that Dave mentioned which is a new search charge that we're uh separating out in terms of the levy in terms of communication uh doesn't impact the tax uh amount that the homeowners are going to pay. It's all going to be on the 8%. We're just trying to to um split out the impact from the base level increase um compared to the legislative impact increase. The second line um down you can see the projected salary and benefits costs. Um those numbers are relatively the same from previous years. It is the second year of uh two-year uh contracts with our unions. Um so a pretty stable number uh for 2026. And then in red I highlighted the legislative impacts. That's the 1.5 million. Um and I have a slide to to provide more details for that. But that's the number that Dave was talking about. um the impact from the le those legislative changes on our 2026 budget and that's already in that's those are in law already. Um the debt service the next line 450,000 is Dave mentioned it's a two-year second year um of a of a five-year plan to build up the debt service levy so that we can issue debt for a new government center building without having an increase. We already have that levy uh set aside and you can see we didn't do that at all in 2024. Um the net countywide levy changes, we just break those out in between things that are across the county. Um you can see back in 2024 we had 2.3 million. Um we were able to use that uh to actually increase uh the number of FTEEs 800,000. Um and then there's also the division levy that changes and I have um slides for both those. And then in green I highlighted that unlike in 2024 where we use additional levy dollars for FTE increases, we're actually saving levy dollars um in terms of the net um change to um the number of FTEEs. Uh so just to highlight that but you can see down at the bottom we have the the preliminary uh budget is balanced um and it's with sustainable increases um to offset um sustainable increase in revenue to offset the sustainable cost increases um as Dave mentioned before I I should highlight the asterisks in uh in 25 and 24 uh we ha we did we have had legislative impacts in the past uh in past years we just didn't break them out because they weren't as significant as they are in 2026. Right? It's always been going on, but not to the extent that we're seeing in 2026, which is why we're now highlighting them uh for the board and for the public's um improve our communication on what's driving the the levy increase for 2026. U here's that slide that I talked about in terms of uh legislative impacts. You can see the first column is 2026 and down at the bottom the total is 1.5 million with the um the big increase in the middle there with the uh did not meet the qualification. Um that the DMMC it's a cost shift from the state um that's uh over $900,000. That's the one individual um that that is that's the cost of this individual and that used to be paid for by the state. they shifted that to us um beginning July 1st of this year. Um so we're we're um that's the the biggest chunk of the 1.5 million. Um you can also see that the the big beautiful bill has a 260,000 increase in 2026 and then another 291,000 in 2027 and another 450,000 in 2028. And these are all these are in law. These are these are numbers that um you know we we feel very confident uh being able to predict um and that the in 2026 there is an increase in FTEES um that would be paid for by that 2% uh legislative search charge that's from the additional workload requirements on our HHS staff uh to make sure the the work requirements and and the various um additional duties that they'll be responsible for um and the in the state the 125,000 that M A FPC WDA. I'm not going to uh explain that one to you guys. That one is uh um that's a mouthful. But that is a there's a small cost increase in 2026 is prepare for that. But you can see the the 3.4 million uh is is a obviously a huge number for us. Um and and the the it's already in law and the the challenge with it is it's actually uh will be driven by court order. So, it'll be a judge that'll that'll u gives the the new law gives the judge the ability to to um require the county and county staff to provide services that we haven't been able to or haven't had to do in the past and that increases uh 3.4 million. So, obviously that's a huge impact looking ahead for 2027. >> Dave Dave, excuse me, if I could uh I just want a clarification. We all know this, we've seen it several times. I just want everyone in the audience and people viewing uh to know this the 910k that's for how many people? >> Uh that's for one person. >> Thank you. >> Cost one person daily cost. Um like I said we we've started paying that the um July 1st we're paying half of that in 2025 and then we that's a full year cost for 2026. >> Thank you sir. Dave, on that line in 27 to Commissioner Lynch's point, and that line on 28, we don't have anything budgeted. And on um the line above it in 28 for state MAFP WDA, you know it better than anybody, Heather. That that shows zero. Does that mean that there's no increment or we're budgeting 3.4? >> Uh that means there's there's no additional amount. So >> So we'd still have 3.4 and 28. >> Yeah, you'll still have 3.4. >> Still have 910 um on on the DNMC for 27 and 28. Yep. because I think that this slide probably says what it says, >> but it's a little missing out. We'd still have to find 3.4 million in 28 and we still have to find at least 910 and 28. >> Yeah. Our our intent would be to have um sustainable long-term revenues to offset those. So once we've in we have the cost increase and long as we use we don't use one-time costs to cover those, we use sustainable, then we'll be balanced again and they'll keep growing. And then to Commissioner Lynch's point, if that if that was went from one indiv individual to a second individual, that doubles, triples, and we have no control over what that number is. So our risk is high. >> That's correct. >> Thanks. >> Just and then at the bottom, uh just to summarize, the administrator's recommendation is that 2% levy search charge for the next three budget cycles. So 1.5 for 2026 and then the 1.6 for 2027, 1.7. You can see that that total would be an additional uh levy increase of 4.8 million. Compared that to the the total need, which is over six million. Um so we'd still have a gap. Uh but our our intent is to um either um reduce that uh need, delay the need. Um or we're going to have to, you know, find additional revenue sources. But um just a projection. Um it it doesn't solve all of our problems, but um that'll be a legislative priority to reduce those uh the levy needs going forward in the next couple years. Now focusing on the the levy increase on the average value home. Uh just highlight that there is a 4% increase on that average value home to up to almost 500,000 and the 8% uh which is the administer's recommendation for 2026. Uh that would increase our levy to the county by 6 million. Uh as I mentioned 8% that would be an overall 8% increase. And then the the the county tax the monthly impact on the average light home from the county tax levy would be $6.80 which would represent a 5.6% increase in that uh the average light homes um county tax impact on an annual basis would be u the 5.6%. And you can see um down below the impact uh from previous year's levy increases at that 6.8% 8% that I mentioned in the county tax impact um in prior years. >> Uh administrator Hemsy, can you refresh my memory? I think last year we came out with a 8.9% preliminary levy and brought it down to 68. Is that right? >> Correct. >> Thanks. Uh there's a slide that we updated for the the county property tax impact on that average Elliot home going back to 2017. And you can see the two lines with the the green line being the CPI, the um you know the cost of living, the inflation for um the past 10 years and compared that to the county's property tax impact. That's the uh the purple line uh that you see. And you can see they're relatively um close together. Um you know, we are a leading when we're when we're doing the levy. Um we're kind of looking at what the current trend is. So there's a little bit of fluctuation. It's not an exact um same, but you can see over time it's been uh they've been pretty close. Also highlight down at the bottom the AAA rating um that we get from Standard and Pores. They're independent agency out of New York and they look at our um how how the county board adopts its budgets. It looks at our um financial management, looks at our reserves, looks at our tax base, um and it gives us the highest rating available, the AAA um bond rating we've had for uh a number of years. I'll diving into some of the details. Um and I I'll point out that the there were more details in your packet um in attachment A1, but these are countywide levy levy changes. um the uh 4.2 million levy increase for 2028. That's our total um that we're they're trying to get to and that's a $450,000 increase in levy that I mentioned. Um then there's uh other additional increases in levy. Those are for the maintenance of um in parks and trails and replacement our uh facilities, vehicles, and equipment. Um that that's in our long-term plan to continue that. The county administrator mentioned that before about continuing that and that is consistent with the the board's new strategic plan um to to continue to replace and maintain our our current assets. Um highlight the 795,000 almost 800,000 that the county administrator had mentioned in terms of the increase in state program aid of CPA. Uh that's based on a a state formula. It's up to 5.7 million. And then our vacancy savings. Um we have the 5.5% that is our uh estimate that we budgeted for in terms of what our vacancy savings are. Uh we know we're not going to be 100% fully staffed and we use just a trend in the past which I'll highlight that. Uh but you can see 5.5 is the same percentage we used of our total uh wage and benefit projection uh that we used in 25 as well as in 2026. But because of that increase, uh there's actually an additional 200,000 of levy that we can use in terms of vacancy savings for the 2026 budget. Um there's that uh slide I just mentioned about the vacancy savings. You can see the history of um what we budgeted. Uh we've been we were at 5.1% for a number of years and then we've increased that up to the 5.5%. Uh we also now uh project an additional amount for cash flow. Um each year the county's budget grows and the board has a uh a fund balance policy, cash reserve policy that's 30% of next year's budget. So we need to increase that that cash flow amount and that we need that to be high because we only get paid uh we only get paid from top uh property taxes twice a year, but obviously we're spending uh money every day on on salaries and and utilities and various costs. Um, and you can see in the past the the actual vacancy savings has been, you know, five 5.7 up to 7.1 up to a high of 8.4 in 2023 and then it dropped down in 2024. Um, so you can see for a while we were we were over um actual was higher than what we were budgeting. Now we're actually very close in 2023 and we're actually lower in 2024. So we're adjusting our um our budgets based on uh uh historical trend when it comes to vacancy savings. our county program aid the CPA. There's a chart showing uh what that how that's fluctuated and changed uh back to uh 2020. Uh and you can see the increase of the almost 800,000 is in the um is in 2025 budget. Well, the 2025 budget, the 3,800 up to the uh 2026 budget of uh 4,495. That's where the increase is going and the with the gray being the general fund. Um and then no change in our CIPs um capital improvement plans. Then the one-time projects that has 100,000 that reflects the the shift of um sending CPA from our operating budget to our um one-time projects which is on our attachment E. So, the total of the 5.7 million, which is the the increase from the 4.9 from last year. And now the this is a uh summary of all of our um levy adjustments, but separated out by division. Um whereas the previous slide was countywide, these are now each individual division. Um in terms of what their impact has been on our 2026 budget, uh the the biggest cost increases are in the sheriff's area. Uh those are increased costs for the jail uh uh mainly uh medical meals supplies just all those are going up various other increases as I mentioned these are all there's additional details in your packet um PS stands for uh public services Nick Kataby's area um and employee relations uh property and finance and public works uh with various uh increases in our trends um increases in our um in our overall costs Um and then down at the bottom you can see we got revenue increases. The net is uh 365,000. Those are across the various divisions. And then the the targeted levy adjustments is where the division directors went into their budgets and made adjustments as u based on direction from county administrator and from uh county board in terms of what could we do differently? Um where can we uh save money? How can we do different how can we do it uh things differently in in 2026? and that generated over a million dollars in in uh levy adjustments. Now, moving on to staffing. As county administrator Hemsy mentioned, this is where the uh biggest pressure is always on our budget is uh increasing um demands for staff and and as the county continues to grow. Uh how do we continue to provide the high level of services that county staff have been providing over the years? Um and you can see um this year we actually are re the county ministry is recommending FT reduction a net of uh 1.55 um highlighted in red. Those are all vacant positions and you can see the the total cost on the far right. It's actually going to save uh levy dollars of uh just over $300,000 in 2026 compared to 2025. Um I did mention before about the the 2% levy search charge is actually recommended to fund um three three FTEEs in uh health and human services. Um those are directly related to the big beautiful bill. Um you can see those two uh two different positions are are highlighted. Um so there is a $200,000 cost uh for those three positions. Um and so the ministry's actual net FTE would be an increase of 1.45. And just a high level uh visual breakdown of how to um look at the county levy in terms of spreading the $100. Uh where where does that $100 uh is is being spent? Um the health and human services is the uh $25 of that hundred and then the county sheriff. Um you can see there the remaining ones um with operations you can see that's a number of departments there and then the general government you can see the the what those are listed down below and then looking historically at our uh county budget going back to 2022 um you can see the blue light blue is the personnel and how that's steadily increased um mainly mainly from wage and benefit increases health insurance increases uh as I mentioned not a a lot of uh staffing increases over the years. The non-personnel has stayed relatively flat. Uh debt service is is not changed too much. Uh that will over time uh when we issue the debt that'll that will be a number that will change. Um and then the capital outlay the road and bridges, parks and trails, uh various improvements. You can see how that number uh goes up and down and mainly uh driven by uh or paid for by federal and state funding. I'll shift into our capital improvement plans and our um FBE, which is facilities, vehicles, and equipment replacement. On your attachment C, um we do highlight uh 28 million of road and bridge um projects for 2026. And but the only county tax levy in that uh 28 million is 2.2 million for road preservation, um the seal coding and u you know to maintain those. And that's the same levy amount as 2025. parks and trails. Just highlight that that's a there's $200,000 in that 600 678 that's paid for by county tax levy uh for repairs and maintenance. That's actually $100,000 increase from 2025. That's as I mentioned in the county's long-term financial plan. And then a couple other uh caps for buildings and region Royal Authority. Uh just highlight there's no no county tax levy dollars are going into those caps. And then our um I mentioned the facilities, vehicle, equipment. We have a five-year replacement schedule. Uh that's it's funded by a 1.9 million county tax levy. That's another $100,000 increase in 2025. That that list identifies everything we can think of uh that we're need to replace in the next five years. Um you know, across all county divisions, uh facilities has roofs in there and carpet. There's vehicles. Um and then and it has number equipment. Um so we got that all scheduled out and it's funded by the county tax. And then our last attachment is our one-time uh projects. And you know those are those are things we're going to do uh in 2026. And then we use one-time funding for those one-time projects. And we've identified 4.1 million in the onetime funding. And I highlighted the where that money's coming from below. And then the county ministry has recommended um the the following projects and the det there's more details in your packet, but 1.6 is coming out of the long-term financial plan. Those are things we're we've been uh aware of and and planning for. And then there's uh also uh division requests for 2026 new requests that have just come up. Uh Baylor Park uh site improvements is being the the one of the larger ones. And then a few other things that um we we now realize we need to replace sooner than we thought. So, we're moving those up into 2026. >> Looking at our capital projects, our our financial plan. Um, we're we're just a highlight to the board about where um we're looking at we did a we're doing that on the on the operating side with some of the the state statutes and federal statutes that are out there. And now looking at our capital side, what's the um what's our plan in terms of financial um fi funding those capital projects in the future years. Uh you can see the 2.2 million levy that I mentioned for our road and bridge CIP. Uh we didn't increase that for 2026. We don't plan on increasing that. Um that was a 10-year plan to increase that by $100,000. Uh it took us 11 years to get there, but we now increased that by that target. So we've uh we've completed that. um the financial the financial plan for road and bridge CIP and now we've moved on to the parks and trails and as I mentioned 100,000 was 2025 that was the first year we did that and now we're in uh have an increase recommended increase 100,000 for 2026 we haven't determined how many more years we need to do that that's um something we're working with our our park staff as well uh parks commission and to determine you know how many more years we need to do that when can we level that off but um that's that's a high priority for us to to determine that. Um, and then we'll bring that back to the board as part of our long-term financial plan. Um, and then we'll we'll implement that everything that's in our longterm financial plan. We plan it out and then when it gets to the to the next year, uh, then we roll it into the the operating budget as we're doing for 2026. Buildings in miscellaneous CIP um that uh is money that we set aside for uh mainly for the onetime projects. You can see that's funded with the county program aid and we've increased that. Um and then we have the the levy that's being redirected from the debt service. That's the amount of money that we're going to put towards that um uh the uh bond sale in in 2020 for a new government center building. Um and that was supplemented in terms of the 2026 um recommendation with just over a million dollars in year-end savings, the yes account. Um, and that's an ongoing um, uh, you know, we don't we don't have that figured out because that that might not ever end, but there'll always be more buildings we need to do. Um, so just every year we'll we'll re-evaluate that um, and decide what what the cutting administrator is recommending in terms of what projects we're going to do in that current year. And then our facilities um, vehicles and equipment, the five-year replacement attachment D, that has 1.8 million of levy dollars. We uh, are recommending the $100,000 increase. And as I mentioned, that's another ongoing one. I did highlight in the yellow there the the FBE being facilities. Um the public services Nick's uh Katab's area. Um they do have uh levy dollars that go to projects every year for the roofs and and various um uh mechanical stuff, HVAC, um and and different things. So that's an ongoing um um uh evaluation that they're making of our of our current facilities. And then they're putting um dollars towards that. and they do do have that out five years um with the uh plan going forward. So, and then I did shift that um at the workshop we talked about deferred maintenance and that's really this is this is a uh in the buildings and miscellaneous and the five-year um those that's really the deferred maintenance that's the ongoing things that we know we need to do uh that we're aware of. The master space plan is really a separate um separate focus, separate analysis. And as as the county administrator mentioned, phase one is the $82 million government center building. And that's um we have the 3.5 million set aside. And then um and we're planning on then increase that 450,000, do that five years. This will be the second year that uh we'll get to our our final goal in 2029. Um and then and then we can move on to phase two which is the other uh buildings that are out there um with the behavioral health and public works and a few others that have been identified by the architects in terms of what what we need to do. Um and and we're working on uh focus on phase one getting that and then once that's ready to go then we'll move on to to additional master space plan uh priorities and needs. Any question on that slide? Uh in terms of the year-end savings, our yes account uh that is our unassigned fund balance unrestricted retaining. So we have separate money set aside for cash flow. We have separate uh money set aside for debt service payments. Um you know those are all um restricted or or uh or assigned uh fund balances but this would be uh a money available um for the board to spend at at your discretion. Um you can see that the beginning balance uh the board did adopt in the 2025 budget our one-time projects on attachment E to spend 1.5 million of that um which which we're in the progress process of doing here in 2025. Uh we didn't talk about that one person uh the cost of that 910,000 for 2026. um the with the state shifting that to us in as of July 1st, we're estimated almost 400,000 um of additional costs that just came up for the last six months uh for this one individual and we're recommending that that get paid for uh out of the year savings account. So that's another decrease. We did have good news um the inflation redu uh reduction act. There's a rebate that we got on the Paradise Commons project. a lot of paperwork involved in that. Thanks to our our park staff and and Mary Kay and finance for uh completing those forms and that did came through and the and the check uh didn't bounce. So, we're uh we're counting that as uh as money into our urine savings account. Um and then as I mentioned the administrator's recommendation for 2026 is to uh spend one point transfer 1 million a little over 1 million out of that uh which would give us a net balance of of five and a half million. Um, the government center master space plan project summary. Nick, are you still planning on doing that? >> Okay, I'll come back if there's any other questions. Uh, thank you Dave and good morning, Mr. Chair and commissioners. Want to talk a little bit about the master space plan. Really focused in on the finance side of things, not necessarily the design. Uh, we'll be back in October to talk about that. So just a quick refresher on the master space plan. We are this is focused on our county buildings and addressing our current and future needs. So when I say future needs, we're looking at 20 years uh into the future for those space requirements. In phase one is focusing at the government center here. Uh the scope of the project calls for a demolition of our oldest our two oldest structures on this campus. So that'd be like where veteran service office is located, the Cessor's office, those two buildings. And then uh there we would build a new threestory facility that would allow uh for our current needs and looking into our future for our future needs. It would also call for uh renovation of the building that we're in right now where the boardroom is at. Uh so extensive renovation of this 602 building. timeline. We're looking at demo in late 2027 uh with construction in 28 and 29. We're estimating that the project cost will be $82 million. As was mentioned before, this will take bonding to finance. The principal and interest on those bond payments will be 5.3 million per year. Uh right now we have about 3.5 million available due to retired uh debt services. So to fill that gap between the 3.5 and the 5.3, that's where we have the 450,000 per year over uh five budget cycles. So what would be the pros and cons of potentially delaying the project? Uh, of course, short-term pro would be uh eliminating the need for that $450,000 that's in the budget uh for this current cycle. Also, we anticipate that there will be higher operating costs with a newer building. It'll be larger. So, when you look at cleaning costs, maintenance costs, utilities, etc., it'll be about $175 to $200,000 per year uh in additional costs to operate that size of facility. So, a pro of delaying the project would be push that off for a year. Again, that would be a shortterm uh benefit. On the co on the con side, uh each year that a project is pushed off, the cost escalates. So we anticipate each year about three to 5% cost increase. So when you take the $82 million project, multiply it by 3 to 5%. Each year that we push it off due to inflation and other factors, we can anticipate the cost going up by about two and a half to$4 million per year. So $82 million now if we push it a year could be 86 could be 90. As we push it further out again those costs will go up. When you factor that into what the bond payment would be uh for that incremental cost increase by pushing each year. You're looking at it between 150 to 250,000 per year. In addition, if we were to delay this project, that would then push back other future capital needs. The big one there is the first street center, but we also have needs in other facilities as well. And again, the master space plan has phasing. Uh phase two is looking at the behavioral health. So, this would push that the timelines on those projects back as well. Uh workplace limitations. I think staff are excited to move out of their uh current facilities. We don't have the best work environment. Um so that would again have some limitations there and potentially impact retention, recruitment and uh staff satisfaction. In addition, right now uh facilities has paused a number of investments on our facilities over there that we plan on demoing and and renovating. with that a number of the key components within those buildings. So things like HVAC, uh elevators, our different systems, we are we've paused major investments. We're maintaining them uh for a safe work environment, but we've paused our major investments. Each year that we push that out, we have a higher risk of, you know, like an air handler failing. uh and then we would have a tough decision of you know do we replace that um or you know how do we address that? So again the longer that we push the project off the higher the risk of one of our systems failing was also asked to take a look at what a renovation would option would look like. So with that, we anticipate it would cost between 62 and $72 million will be focused in on renovation. About 16 million of that would be for the uh the building structure just to bring it up to standards. So think like HVAC, roof, parking lot, elevators, uh entry doors, all that would add up to about $16 million to make those investments. Then if we looked at uh remodeling the interior space to improve the layout, um better furniture that meets a hybrid uh workspace, uh better technology to meet those u current demands of our workspace, looking at about $26 million in investment to do that. With that, the building size of the building footprint wouldn't meet our 20year needs. We would need to construct a building offsite to meet our long-term needs. And we're estimating that would be about 20 to30 million to accomplish that. With that and looking at this option, there would be some limitations. It would create a split campus reducing some of the efficiencies that we have by having staff at uh the main campus here. uh it may not address some of the building environment concerns that uh staff have and uh the space layout would be better than it is today, but it would not be ideal. Um some of the security measures that we're looking to implement, some of the uh general layout, it's better to have a fresh plate to work off of versus the limitations of our current footprint. With that, Mr. Chair, I would stand for any questions on the master space plan portion of this. All right, see you none. I'll pass it off to Dave. >> All right, thanks, Nick. Uh, so real quick, we'll take a look at the long-term financial plan. Uh, we will be coming back to the board with a more uh detailed presentation in in the fall and November. Uh, but just high level road and bridge capital improvement plan that's based on the two 2040 uh transportation plan. Um mainly we matching uh county um dollars from our transportation sales tax as well as our wheelage taxes. Um our building miscellaneous CIP Nick mentioned the master space plan study. Uh the Chaska library has been mentioned. Uh those those are the big things that we're focusing on that. And then parks and trails, as I mentioned, uh we're still um working on uh accomplishing a goal of having no poor condition um assets in in the parks and trails. And then a five-year goal of uh poor condition being the poor condition being less than 25%. And then operations, I mentioned the FTEEs, uh that is the constant pressure on our budget. Uh we try and minimize those requests by uh investing in technology um being innovative cooperating with other local governments. Um and then just reminder the board about the levy for any additional Chaza Library FTEES employee health insurance. Uh we did do a RFP request proposal in 2025 that was a two-year um agreement that we got. And so that for 2026 we had a 12% rate gap which helped us keep our health insurance costs down. And then last slide is on the budget calendar. Um, County Commissioner Hemsy mentioned all the meetings we've had up to this point. Um, and then today we're asking the board to adopt the preliminary levy and budget. Um, and then a couple more meetings including the long-term content plan that I mentioned. Um, then a public hearing. We're also asking the board to adopt that today, the Tuesday, November 25th at 6 PM. And then the plan would be to come back in early December for the board to adopt the final budget and levy. And with that, the action requested is to approve the administrator's recommended uh preliminary levy as stated. Um, and I'll stand for any other questions. >> Thank you, David. Um, I see maybe one staffer not in the room. Anybody have any discussion relating to the presentation? Seeing none, back to the county board or a motion. Mr. chair, if I could, we went through this uh in the work session last uh week and that's also recorded and broadcast so anyone can see it. Um I'll say what I said then. I don't like the 8.0. I think it uh uh it's very creative for uh uh administrator Hemsy to give it the 8.0 because of all the state transfers that uh they've given us and the mandates are are kept. I'll applaud him for coming in at 8. And as to your point, this is always his budget before it becomes our budget. And uh uh I want to continue to work on the 8.0 just like we did last year. Um but with that, that's my comments on it this time. Thank you, Mr. Chair. >> Commissioner Fehey. >> Thank you, Mr. Chair. When we look at the overall taxable market value continues to go up, that was 6%, the average home values went up 4%. Just very positive. And to see that the 26 levy increase paid for by new construction is about 2 million. There's not too many counties that have that luxury. So, as one of the things that was also mentioned that Carver County has gained the most baby boomers than anywhere else in Minnesota. Those families, the new developments, the amenities, the road systems, the police protection, the quality of life is just drawing those baby boomers here to Carver County. uh they're extremely uh well off. And so that's a very encouraging trend. And it was stated earlier in the community announcements that um the county in their past actions had invested in the future. You know, I think that's a very important statement. As we look ahead, we plan, we invest in the future, our staff and the road projects, etc. And then we are growing and people want to be here, live here, invest here, excuse me. They want to raise their families uh here and they want to be safe. They want the great roads, the great schools, and they want that small town feel. And in that growth mode, the costs are definitely increasing. So to be pro growth, pro business, pro community, you know, driven is guided ultimately by the quality policies that we have, the CIP, the facilities, vehicle equipment replacement schedules, and all the other services. And then you driven and support that by the quality staff. And with the AAA bond rating, I just go back to the mission statement that we work on. We spent a lot of time on the vision and mission statement this spring is to meet the service requirements and special needs of our residents in a fiscally responsible and caring way. We will plan the county's growth to preserve its uniqueness and will encourage rural and urban compatibility. We will protect our history while planning for a de dynamic future. So we need to continue to invest in our future and I support the preliminary budget as it was presented. Mr. Chair. >> All right. Thank you, Commissioner. >> Well, like Commissioner Lynch and Fay said, we already did this um in a work session last week, so I'll share some of those comments. Um I think it's creative and clever and smart to separate out what the state shifts to us. I think maybe part of that slide that would be um even more important is what percentage of our overall levy dollars go towards unfunded state mandates because that number keeps going up and how do you create that transparency with your tax base. Um I also think the buck stops with us. If we had three people that said 3.5% on a levy, we would figure out a way to get to 3.5%. And uh what we see is slowly slowly slowly slowly on the county level um our tax rate continues to increase. And so if you go back to 23 at 4.9% increase, uh 24 6.8, 25 started as a preliminary 89 came to 6.8 and this year 8. Um we can put our hands over our eyes and close our ears. Um but 27, 28, and 29 will be even more challenging. I don't see a path that we can get below whatever the recommendation or final is this year and future years. And I think that we need to look beyond uh more than 24 or 12 months uh 24 36 48. I think we see some elements of those things. Um, Commissioner Fee's points are well made. We are a growing county, but what happens when we're not? I see peers around us that are not growing. They don't have the luxury of that. I see estimates that we had at one time that are slower than that they were before. I see uh even before all the things that were said that our mission is a great place to live, work, and play for a lifetime with no asterisks. And I talk to people daily in the schools. I talk to single moms and single dads. I talk to people that are working in our schools. I look at law enforcement, they simply can't afford to live here. And if we continue to increase the tax rate, we'll continue to contribute to that. And we'll either have to change our mission, put an asterric, or not deliver on it. Um, I think leaders have to look beyond a year, not just sit in leadership roles, but truly lead. And I think that there's ways to do that. And, uh, I say these things, um, not in a place of blame or point, but I bring solutions to the table, too. So, I'll share what I've shared before. we can get to a 3.5% levy um if we hold our headcount at 720 without having to let anybody go. Um and we can do that until we have 130,000 population. So our ratio of of people per thousand or people per um capita um to consistent within the metro and we can continue to generously support um as we have the last two years with our union contracts um out three more years so we could have five consecutive years of sizable increases for our staff. How do we do that? We've had some of those conversations and I appreciate some of the work that's been done to address that. We've ripped the band-aid off and said instead of talking about it, we're going to look at the 600 building and actually fund it. So, kudos to the team for putting a funding plan together. We didn't have that 5 years ago and we do now. Um, we need to look seriously at our DMVs. And if your staff listening to that, I don't I don't I don't think you go away. Uh, I think that the burden on the county goes away. I think we have examples across the state where there's third party companies that are are operating DMBs and I think we need to seriously look at that. We have one. We have to look no further than Waconia. Why should we subsidize DMVs uh our taxpayers when 50 to 70% of the people that come through our DMVs are not county residents? Why should we subsidize that to the tune of a half a million dollars a year without capital expense without uh looking at growth and new facilities? We could potentially lose um on behalf of our taxpayers $15 million out of our DMVs in the next 10 years. It's just not prudent. I look at our libraries and I floated the idea of us having a regional library. So three or four or five people could contribute to a library that could serve our our region versus looking at the traditional model of libraries per city. We will be facing based on our growth trajectory trajections um Victoria, Carver and Chaz all needing libraries in the next 20 years. I just don't think it's prudent. I think we should I think four walls are more affordable. Four walls in one and one um and one parking lot are more affordable and better for our community than 12 walls and three parking lots. And I think we're buying oursel problems if we just don't talk about those things. Um, I think we should have a three-year directional budget and whatever we land on for a preliminary level, I think we should adopt as a three-year look. Um, so that staff know what we're looking at, so that our employees know, so that our community knows. Um, and I think again, we're seeing remnants of a three-year. Um, I think we need to be prudent on um, seven buildings that have roofs that are approaching 20 or more years. And I think we're seeing remnants of that, and I think there's some really good things to be had there. Um, but I just I just don't think when I talk to the people that I talk to and they're not in the boardroom, they lean on us to make these decisions. And so I've heard the thing before where well people aren't in the boardroom, they're not upset about it. They'll be upset when they see their tax statements. And our tax rate is gone up in the last 5 years on a median residential household. Where do over half our staff live? Where do they live? If they don't have a significant other or their mom and dad aren't aren't uh putting money towards it, where do they live? We're we're approaching a half a million dollars of median house value. is you can't live here. If you go right along with a sheriff's deputy, which I've done every year since I've been in in office, most of our sheriff's deputies, if they're not um late late mid or late career, they can't they they simply say they can't afford to live here. We have to address that, right? And so we can justify our way to eight or nine or 10% this year or next year or the next year. But if we don't bring that tax rate down and if we're not, and I'm looking forward to our CDA conversation in a few minutes, if we don't address the things, then we can't truly say it's a great place to live, work, and play for a lifetime unless we put an asterk next to it. You have to make 150 grand or more household income to live in this county. And I I know people have talked about let's lower our tax. I know we've talked about we're traditionally conservative Carver County. I know we've talked about lowering the tax. I know we've talked about the artificiality of it, but unless we as a board say with our with our with our pen when we can in the budget time that we're going to do something about it, then we're no better. So, I'm going to support three and a half%. I won't support anything above it. Thank you. >> Thank you, Commissioner Anderson. >> Hi. Thank you. First of all, I want to um thank uh our administrator and um all of our staff for some of the creative solutions. Um, I know we've had a lot of conversation. I've I've made a lot of requests. Um, most of those we had good conversations about. So, I want to thank you for that. I also want to remind um uh the board and and all those that that 6% of this budget is honoring our commitment to our employees. Um, so that was set. Um, so the the additional 2% is is that shift. Um and um so I I I'd like to personally um look for ways to reduce that, but but it doesn't give us a lot of wiggle room. Um I I also do want to comment that um as far as the DMVs um that they provide a critical service to our community and um so my constituents and people I've talked to um uh leaders in this community um don't understand uh why we would even consider um eliminating a DMV at at this point. Um they provide uh critical service to our community and provide documentation people need to live um need to to live here. Um I do have real concerns about our capital improvement plan. Um 89 million without even thinking about what our next step is with First Street Center makes me nervous. So, um I personally I we'll wait for this conversation in October, but but I I personally need to better understand um what our plan is past this building in order to uh look at all of our capital improvement plans, including First Street Center. I do support uh this as a preliminary levy. Uh last year I do um things did come down a bit and I'm hoping that that can happen again but at at this point I think looking at what other government entities are doing I I think this is a a reasonable amount. Um and remember this can't go up but we can always go down after this. So, um, at at at this point, um, given what our budget requirements are, um, and again, the commitment we've made to our employees, um, I think this is a reasonable amount and again, thanks everyone for all your work. Thank you very much. I too want to thank our staff, Administrator Hemsy, his division directors, all of our staff. Um, I see this as a beginning. Uh, I know we've been kind of at this since May, June. Uh, a lot of fun. Always adds to your fun summer budget stuff. Um, but today is sort of the kickoff, sort of the the uh the starting line to what can be in December. And I don't know of any of us that aren't going to continue to take a look at that. I'm not going to walk away from this budget. Uh, I don't think all any of us want to see an eight. I do like that it's it's divided out this year with the six and the two to indicate what the state and the feds are doing to the property taxpayers of Carver County. Um but we have it within our power today to pass a 3.5% levy increase. So, we don't have a motion on the floor yet, but a 3.5% levy increase would mean we'd need to come up with about $3.4 million in additional cuts. So, we can say three and a half today. And then we are going to have a really fun fall and maybe we are going to close license centers and maybe close libraries. So uh it's this board's option uh to hold staff even more. It's not our budget yet. It's staff's budget to hold them more accountable. Um uh either way, I plan to spend some time looking in the cushions to uh to find additional cuts to this. I think Commissioner Anderson said it well. We we made a pretty big commitment nine months ago uh with pay raises, etc. to keep our good employees. And so here we are, among other things, and all the minutia of this budget. And so the 8.0 here on preliminary Libby day is staff's recommendation. So um again I think this is the starting point and and uh what's the date for the final budget this year? December >> two which is very early. It's coming fast. Uh the golfers will be in the national championship then and wow. Um so we just need them. We need a motion. >> Mr. Chair, if I may before um Dave, administrator he just want clarity because I know it keeps coming up. Um is it county's obligation to deliver DMB services? >> Uh Mr. Chair, board members. Now that is a discretionary service. I would I would say uh uh commissioner, you mentioned having the private sector come in. We'll provide you more information on that in terms of what's being offered by private sectors across the state. I I think they sort of cherrypick their services to to pick the more profitable ones. To me, the the better solution if you want to keep those is to press the legislate legislative body here, the state uh to to at least cover help cover our costs. But we'll give you more information on that. But no, it's a discretionary service. Thanks. >> May might I ask um Commissioner Workman, can can you remind us how much revenue the RDMVs generate? >> We Yeah, we had a slide last time. I still have it actually. >> I think it was around 14 million. >> 1.4 >> Okay. Sorry, I 1.4. Okay. I had the decimal way off on that. >> Yeah, Mr. chair, commissioners, we had we had I think we took the SL chart out this time to scale back on slide, but we had >> Yeah, second quarter review we did it which there's a you can go back to last week's presentation. You can see the profit loss. It's alarming. There's no question. I mean, it's approach back in uh 2019, we were making a profit. Now we're 450 >> for 2020. >> Within a decade, we've shifted from a half million of surplus to half million loss. And that doesn't include capital expenditure. doesn't include expansion, doesn't include the daily calls that I get, weekly calls I get from people when their kid wants to go get a driver's test because they're confused as to who's supposed to deliver that service to say our staff's done a great job of of building efficiency, but we don't have any more capacity, physical capacity, and we're we're the fastest growing county in the state. We'll need another location or we'll need to expand. Who's going to pay for that capital expense? The 50 to 70% of people that come from outside our county, probably not, right? And so we're looking at significant investment here and we again we can kick it but I know Eden Prairie took a bold move in 2012 to say we're going to get out of the business and that's when it was losing them 300,000 and in their press release they said go to Chask and Chanhassen let them subsidize it. So essentially we're complaining about the state shifting money towards the county but yet we're taking it when we're subsidizing a service that we don't have to offer. I'm not saying getting rid of it. I'm not saying that the people shouldn't have options of place to go but I will tell you that 30% or so of our revenue comes from um tabs. I don't know anybody that's going to be buying tabs anywhere other than online in five years that we will not be able to write that revenue into us. I don't know where the revenues are going to be had. So, if we're not willing to have that conversation, if we're just going to, you know, laser out the political answer of we're going to, you know, leave our people without a place to go, that's that's not the reality. And then there was also something said of, you know, we need to honor our commitments. We can honor our 7% a year for the last two years and tighten our belt um and get to 35. I've shared those with um um Commissioner um Workman, our board chair and and our administrator. There is a path to do it if we want to do so. So, you know what the heck? Commissioner uh uh Workman, you said there's nothing on the table. I would propose I would that we have a max levy of 3.5%. Make that motion. >> Okay. Is there a second? Is there a second to the Uterman motion? And a third time. Is there a second to the Uterman motion? Hearing none, I might need a new motion. >> Uh, Mr. Chair, I will make the motion for the 8%. Do you would like me to read the total action? >> Sure. >> Then I'll make the motion to approve the administrator's recommended 2026 preliminary levy of 80,873,855 [Music] and 8.0 from 2025. a total preliminary budget of 169,144,493 and any any sense and to set the 2026 budget hearing for Tuesday, November 25th, 2025 at 6 p.m. >> Okay, I have a motion from Commissioner Lynch. Is there a second? >> I'll second that motion, Mr. Chair. Okay, I got a second by Commissioner Fehee. Any further discussion? Seeing none, I'll we'll have the roll call. >> Odman, >> nay. >> Workman. >> Yes. >> Anderson, >> yes. >> Behe, >> uh, yes, with a comment. I looked up Tuesday, November 25th. The 25th is actually a Thursday. So it must to correct that be Tuesday the 23rd. >> Is that the truth and taxation date? >> I think >> uh are we on Thursday or Tuesday? >> That's off on a Thursday. >> On Thursday, but we can have it on Tuesday. No. >> Okay. >> So, Tuesday the 23rd for the motion. >> 25th. >> 25th. >> Was it Thursday? Oh, >> I checked it is >> no. Sorry. I forgot what the motion was. >> 3.5. Uh, we weren't done with the roll call. >> No. Fehey >> I. >> Lynch. >> I. >> Okay, now we're done. >> Okay, motion passes 4 to one. Thank you very much. And let's get a cracking. We are going to take a threeminut recess right now. wipe out either. >> All right, we're back. Uh, and let me note that Commissioner Anderson, who was remote, has uh left the meeting. She uh indicated she would need to do that prior to the meeting, which also means we will not have to do roll calls. We'll have to just do the oral roll call. So, item 3.2, two, preliminary Carver County Water Management Organization 2026 levy. Mr. Molen. >> Uh, good morning, Mr. Chair, members of the board. Paul Molen, public services deputy director here today to present the 2026 preliminary levy for the Carver WO. Where we're at in the process here, uh, we started our process back in March. We send out requests to cities and other partners for projects that they are planning for next year. We brought those to our water management advisory committee with a discussion in both May and July and got a recommendation from that committee in July. We had a budget hearing in August and here we are today to set the preliminary levy and similar to the countywide budget that this final levy gets adopted in December. So just a a brief moment here. You've heard from other wershed districts I think over the last year. Minia Creek, Riley, Purgatory, Lower Minnesota just last week. Um so I just want to take a moment to to um cover your own watershed and what you do here in the county. Um we are implementing the water management plan that the board adopted in 2020 and that follows requirements of uh Minnesota statute. uh all those requirements and recommendations in there. The way the WO is set up um follows seven program areas. Um those range from education to water quality monitoring, our permitting program uh which targets developments, new developments and redevelopments. Projects planning for uh you know updating the water management plan, groundwater plan, etc. aquatic invasive species, which you've heard a lot about over the years, and of course the administration of the WMO. I' I'd refer you to our 2024 annual report and refer the public to that too, which is on our website and covers um more detail on the wide range of what the WMO does. I do want to hit a couple highlights here. Um again, this is what's on the website, this annual report. You can click on any of those program areas. It's interactive story map and and I would uh encourage folks to go look at that. And just one example in here is a number of projects we're doing across the WMO. Uh we've got up to almost 30 projects that are in some state of either being almost completed or just starting. And it gives you some idea of the breadth of um the work we're doing. Just to remind uh the board and the public, uh the CCWMO is about 320 square miles covering the county. It does cover most of Carver County with the exception of the watershed district um um boards and and entities that are out there. And again, those include Minia Creek, Riley, Purgatory, Lower Minnesota, and Buffalo Creek wershed districts. The Wol covers the rest of the area and the levy you're considering today is impacting just that WO area. Those other districts, their boards set their own levies. With that, um kind of a comparison of what those leveies look like in 2025. And I put this slide up to do a a kind of comparison where the W mo fits in terms of our tax rate and both and both that and the amounts. So you can see a rate here of um 76% or excuse me 76 for 2025 and how that compares to the other watershed districts in the county. We are well under most of those and um pretty similar to lower Minnesota who has the lowest the amounts generated. Um you can see these four other watershed districts just a portion of Carver County. They also exist in Henipin or other counties. And uh I I like to compare us also to Scott County which is our probably across the state the most similar water management organization and their rate is um also higher with a larger budget for a similar size area. Where does the tax money go for the WO levy? Most of it is into operations. We've got this area here which is staff and engineering costs. We have an allocation of the soil and water conservation district which does administer a a large um portion of um helps us to administer a large portion of the work we do particularly in the rural area and out in the field. And then the other portions of the levy um consist of project monies, the AIS program and then our other programs education and monitoring. want to talk a little bit about this two areas. One is the project funding influences. Again, we request um from the cities and partners what they are seeking to do in terms of projects that improve water quality, improve storm water. We do that um earlier in the year. We got uh several requests this year mostly from Wonia and Watertown. And we also look at our water management plan and the the priorities in there and the projects that are planned out um over the period of that 10-year plan. One of the other influences we have is match for grants. We've been fairly successful in getting um state grant money. Currently in a in a two this bianium we have about 700,000 and that grant match need is a 10% requirement. So that does impact what we need to levy. Local requests and recommendations are on this slide here. Um I'll just go through them quick. We got a request from the city of Okonia to do some improvements along an eroding ravine called the Fox Ravine. This would be the phase two. We are recommending fully funding that request of 50,000. We got another request from the city of Wakonia to do some future planning for their storm water reuse system which is quite extensive. It's actually the the biggest in the state of Minnesota. Um they wanted some planning funds. We are recommending a portion of that to be funded. Watertown had a storm water treatment request around Angel Avenue and we are recommending uh partial funding of that. Uh Laketown Township did send us a request for $2 million to help fund their 2011 system. Uh the board's heard about that system before and received a separate request. Uh we are not recommending any funding for that. The reason being is it really doesn't fit and qualify under our storm our county water management plan and um the WO does not have capacity to fund something like that. So we are not recommending any of that funding. Um, lastly, the city of Woney also asked for uh $10,000 to replace uh several of their storm water reuse meters, which is part of their big reuse system. and we're not recommending funding of that due to um we really have not in the past funded any equipment that runs a city utility such as this and believe that as they're continuing to run this system and expanding it, they do need to fund sort of maintenance of that system. Uh and so we're not recommending our committee did not recommend funding those meters. So, the project recommendations, city partner requests, um WO projects, those are ones that come out of our our water management plan for 2026. Those include, um a treatment of Eagle Lake, uh the curly leaf pondweed that is um invasive in that lake. Um spending some money towards that. Uh partnering with the city of Chaska to look at a feasibility study on on some ravines that run into Mcnite Lake. And lastly, in um increasing the fund for our direct discharge program for septic systems. That's what makes up that 69,000 clean water grant match. I mentioned that that's a required match for the the state 35,000. And then project maintenance. So this would be for projects that um we've already installed that do need occasional maintenance. We try and get a fund um built up for when those we need some repair of those projects. total of 23,321. That's an increase of a little over 28,000 from 2025. Other piece of our budgets operational costs. So the the WO covers a portion of staff cost increases. So roughly about half of um staff costs for the WO are covered um the work of the WO are covered by the WO levy. The other half is a general levy. So we do follow along with those um staffing increases and that amount equals 32,776 between the two the projects and operations that brings a total budget or excuse me recommended levy increase to 61,97 from 2025 that is a 6% levy increase about 23,000 of that is incre is is tax capacity growth. So the the increase of growth within the WO only is reflected um in that total amount. The annual tax impact on the average value home from this levy increase is a little over a dollar4 which is a 2.9% increase from uh 2025. That brings a total tax impact on average value home to $36.74. With that, Mr. chair uh requesting that the 2026 preliminary Carver County Water Management Organization levy is 1,79,359. With that, I'll take any questions. >> Okay, any questions from board members? You look awfully polite after following Hemsy and Fishman. I think that's the plan. >> Mr. Chair, I'll make a motion to approve the 2026 preliminary Carver County Water Management Organization levy at 1,79359. >> Okay, I got a a motion by Commissioner Fehee. >> I would second, Mr. Chair. >> And I have a second by the two gentlemen who this mostly impacts, I guess. Correct. This is not if you're in Chan Asen on your tax statement. Correct. boardman. Uh, any discussion on that motion? Good job, Paul. Uh, all those in favor say I. I. >> I. >> Those opposed. Motion passes. Thank you very much. >> All right. Should we take another break before the CDA? >> You can say no. Alison. >> No. >> Yes. Miss Strike, we are going to talk about the CDA 2026 levy and budget. >> Uh, good morning, chair and commissioners. Allison Strike. I'm the executive director for Carver County Community Development Agency. I'm here to talk about our 2026 budget and levy. Um, and I just want to introduce uh folks in the room with me. Um, I have Chenica Bumpers. She's our director of housing, Melody Bridgeman, our director of community development. Janette Meyer, our director of human resources and operations. Troy Williams from our board. Um, and the chair of our board, Greg Anderson, was supposed to be here, but he had something come up last minute, so he's not able to join us. >> He's selling a house. >> H, >> he's probably selling a house. >> Probably. >> Good for him. >> Uh, just a little bit of history on the CDA. Um, we were created in 1980, first levy in 1992 for payable 1993 taxes. Um, in 2001 we were granted EDA powers and in 2006 we changed our name to the CDA. The mission of the CDA is to provide affordable housing opportunities and foster community and economic development. Uh, the CDA adopted our uh 2024 to 2027 strategic plan at the end of uh 2024. Um, these are our four main objectives. Uh and we provided an update to our board on our goals and initiatives at our May 2025 board meeting. Um some of the programming we offer, the community growth partnership initiative that was created and funded by the CDA starting in 2016. Um the goals are to increase tax base and improve the quality of life in Carver County through three three specific strategies. um affordable housing development, job creation and redevelopment or community development. Um and that is through direct grants to the cities in Carver County. Um and to date we have awarded 32 predevelopment grants totaling $236,680 um and 2,172,549 develop uh dollars uh $49 in community development grants to cities and townships in the county. Um and these funds have leveraged over $200 million. Next stage, so we continue to support Next Stage and providing uh businesses with no cost business consultation. Um Next Stage has planning resources which include writing a business plan, refining concepts, testing concept feasibility, and compiling financial pro projections. um starting business resources include helping select an appropriate business entity, licensing, compliance, accounting system support, and also Next Stage is able to provide direct financing. Um once a business is up and running, support includes building revenue, managing costs, securing capital, and providing access to state and local financing. Um, so the last four quarters, which ends with quarter 1, um, through quarter 1 of 2025, Next Stage has assisted 69 clients and invested $2,491,400 in financing. Um, and Next Stage is working working on launch launching CEO 1.5 to help existing businesses with continued uh, focused growth. Um and this pilot program will be a small school uh small group um intended to empower established small business owners um to identify gr uh growth and management opportunities to boost their profitability. Um and then our local housing trust trust fund. This was established at the end of 2024. Um currently we have 132,500 in there with our money levy money from 2024 and 2025. Um, local housing trust funds are used to expand affordable housing options. Um, and we are working with Beyond New Beginnings on an expansion to that project with the funding we currently have um, in our local housing trust fund. The Carver County Subsurface Treatment Systems. So, we partner with Carver County Environmental Services to provide residents um, with low interest loans for improvements to failing septic systems or well wells. So we verify applicants income and um assess the prop help assess property taxes for the loan or grant amounts. Um and then our land trust program. So we administer the land trust which provides access to um affordable home ownership uh uh targeting households at or below 80% of area median income. It ensures uh permanent affordability by retaining ownership of the land and removing it from the real estate purchase. Um so currently we have 43 land trust homes. We have them in Carver, sorry, Chaza, Cologne, Mayor, Victoria, Wakonia, and Watertown. Um since its inception, we have served over 74 families. We have additional five homes under development in Chesca and Watertown that will be added to the program. Um one is the historic Erns House, which we are rehabbing, and then four new construction. And then an additional five homes will be added through Minnesota housing funded um home buyer initiative program. And that's where home buyers um go out into the community and find a home and then we help them bring it into the land trust. Um as of uh August 24 board meeting, we had awarded the construction contract to DDK Construction for the Burns House uh rehab and the three additional single family homes. Um the CDA will carry the bulk of the just over $2 million for that project um until we are able to sell off the homes and then we will get reimbursed. And we're anticipating the units in Chaza will be ready to be listed in October and the house in Watertown in November. And then Minnesota housing uh rehab loan and emergency loan programs. We administer those for uh Minnesota housing. They provide deferred loan financing to eligible low-income homeowners who are unable to secure home improve improvement financing in the private market. Uh LAA the local affordable housing aid um that is the money that comes uh from the sales and use tax created by the legislature. um the CDA and the county signed an agreement in um April of 2025 for the CDA to administer 70% of the LAA funding. Um we launched our down payment closing cost assistance program in June to celebrate National Home Ownership Month. Um so these are pass through funds. Uh the down payment assistance and closing cost program initiative will provide uh financing for qualified first-time home buyers to use towards down payment assist down payment and closing costs for homes located in Carver County with a maximum sale sales price currently at $415,000. Um eligible applicants can receive up to 25% of the purchase price or a maximum of $50,000. uh loans are forgivable over 20 years. 0% interest and 5% of the original loan is forgiven per year. Um in 2024, we received just over $1.1 million and that entire amount of money was used for down payment assistance. So as of August 29th, 2025, we had 36 applications, six reservations, nine closing, and three scheduled closings. So that program with the 2024 money has already opened and closed. This just shows all of the CDA properties. So we currently own and manage 793 rental units scattered throughout the county. Um and the addition of Carver Oaks will bring that total to 836. Um this is just a map showing where all of our properties are located. an update on the Carver County CDA project funds. Um, so Humanity Alliance in Bluff Creek, Rural Development, and West Creek, those have all been completed and fully paid. Um, as well as Carver Place, which officially opened today. Um, Carver Oaks will be opening on March 1st and the million dollars for Trails Edge Senior, we submitted an application in July to Minnesota Housing and we will find out in December if that project got funded. Um, and part of getting trying to get Trails Edge Senior funding um to reduce the gap to make us more competitive. Uh, we reduced the total number of units from 76 to 43. Carver Place. So, yay. We officially took possession of this property uh last Thursday. It opened today. We have six moveins scheduled for today. It's going to be a busy week. Um this project will consist of 60 units which with a range of 1 to three bedrooms affordable to households at or below 60% of area median income. That is uh currently 55,620 for a household of one and 92,160 for a household of six. Um and then we'll have seven units of uh section 811 units for households where the head is between 18 and 61 um with a household member having a disability and supportive services. And then seven units of high priority homeless units funded through housing supports from the county and the CAP agency will be the uh service provider for those units. Carver Oaks will be 43 units again opening March 1st. um that will serve uh seniors 55 and better um at or below 50% of area median income, which is currently 43,500 for a household of one and 62,100 uh for a household of four. And that property will have seven units of VASH funding. So VASH funding is specific for veterans. Um it serves homeless veterans. The rent is subsidized and then the VA provides supportive services for those units. an update on the CDA office space. Um, so as I previously mentioned, uh, we own the retail space within Brickyard. Brickyard, sorry, owns the retail space, uh, that is currently leased to Subway. We did give Subway notice that we'll be ending the lease at the end of March 2026. Um, and then we are anticipating expanding into that space uh, to allow growth for our agency without taking on any additional debt. Just to talk a little bit about uncertainty. So total property revenue in 2024 for all the CDA owned and managed properties. So this does not include Carver Place. Exclusive exclusive of parking was just over $9.6 million. Federal rental assistance made up 30% of that at just over three million. Um so the current administration's budget proposal is to slash federal rental assistance by 43%. Um the House and the Senate have both both released their proposed budgets um with varying levels of what they want to how much they want to cut and which programs they're targeting. Um so this is an unprepedented cut. Um and so while the proposal at least the president's proposal is to prior prioritize elderly and disabled uh a 43% cut to this funding would be devastating not only for the properties that we manage but in particular for the residents that we serve. Uh especially when you couple that with the cuts that are already going to go into effect for both Medicaid and SNAP. Um so some of the things we've been doing to mitigate that and prepare, we've been having uh discussions with our board on contingency planning um for months as we're prioritizing all of our properties have five-year capital improvement plans. Um and this year we are prioritizing really life and safety things that things that need to get done um and deferring other stuff into the outward years. Um, and then as we begin working on our 2026 budgets, we'll also look at look at potential cost-saving measures. Uh, so with our 2026 levy, in accordance with Minnesota statute, the CDA is authorized to levy special benefit taxes subject to approval from the car. Carver County Board of Commissioners. Um, and per statute, we're eligible for a maximum levy of 0185% of the estimated market value. So per the formula in the state, we're eligible for a maximum levy of 4,160,545, a 16% increase from the 2025 levy. Uh we held held a budget work session with our board on April 24th. Um and they approved our 2026 budget at the June 26, 2025 meeting and then they approved a revised budget at our August 19th meeting. Um and we presented to the county board during a work session on July 1st. So for the 2026 budget, the CDA is requesting a levy of 3,798,46, which is a 6% levy increase totaling $215,04. Um that's an incre the increase from 2025. And then the impact on a $494,700 value home is an increase of $2.37 for a total of $729 per year. Uh the total 2026 budget for the CD is 19,549,734 of which the levy funds represent 20%. And funds from this levy increase would be utilized to offset increased payroll and benefit costs. So this is just a slide comparing 2025 to 2026. So the 2025 approved levy, that entire amount was also used for administration, which is what we're approving uh requesting this year. Um and this slide doesn't have anything to do with the levy. This is just some budget use. Um so we're going to be proposing to increase the community growth partnership and the local housing trust fund. Both of those were cut in the uh 2025 levying budget. Um so increasing the community growth partnership back up to 415,000 which is 67,500. Um we won't be able to increase the local housing trust fund back up to 100,000 but proposing to do 71,333 and then our office rent um when we take over the subway space uh to 105,000. So, we will be using the new management fees the CDA will be bringing in from both Carver Place and Carver Oaks and this and then just an overall increase to our management fees to get all those numbers up to where they are. Um, and then uh we will reduce we'll be able to absorb some of the cost of the increase in office rent, the difference between the management fees um by reducing our budget line item for temporary office admin help. This slide just so shows the breakdown of percentages of our revenue sources. So, state local operating is 20%. The levy is 20% and housing makes up 60%. This just a breakdown of our budget in um the changes from 2025 to 2026. um showing a total uh revenue of 19,549,734 uh with the same on our expenditures and just to note the bonds in there that 276,000 uh that is the CDA's levy obligations to our properties that are financed by county or city back geo bonds. This slide shows you a history of our levy uh increase going back to 2015, including our 2026 recommendation at 6%. And then the action requested is a motion to approve the resol resolution approving the 2026 proposed budget and payable 2026 levy of the Carver County Community Development Agency and certifying said levy to the county auditor. And with that, I'll take any questions. >> Sounds like a motion. >> Mr. Chair, I'll go ahead and make the motion to approve the levy request at 6% for the CDA. >> Second >> as stated by Miss Strike. >> So move that's legal, >> Mr. SH clarification. You're adapting the budget too as proposed. >> Yes. >> Yes. Thank you. >> Yes. Okay. I got a motion and second on the CDA budget and levy. Who has any discussion? >> Mr. chair. Um I did attend the August 19th CDA meeting and there was a lot of discussion and a lot of feedback regarding uh the budget and the levy increas. It was encouraging encouraging to see them drive it down to that 6% number and just very exciting with the opening of Carver Place today. just a huge success and we have that grand opening next week. Correct. >> Correct. >> And then just as important now the new opportunities in New Germany and Watertown and the Erns House and one of the interesting facts that Allison stated was that the pre-development grants and the community development grants and that impact now is over $200 million of what that has done for economic development for Carver County. So, great job. >> Very good. Commissioner Hutterman. >> Well, Mr. Chair, it's been an impressive 12 months. I think you've uh come into the role and and done a lot of stuff. Um I think last time you were in here um last year we were talking about con space constraints. You addressed that. We're talking about new projects. Two of them are out of the ground. Three. Am I counting it right? Other one's funded. Um you've addressed a lot of things that are there and and I'd be in support as I have in the past years of of more funding so we can do more stuff. I think that we've got a gap and we need to close it. And that shouldn't be exclusive to CDA, but you're doing some good things. I did have a chance to hear Allison speak in Hopkins last week. Was it last week? Two weeks ago. >> Two weeks ago. >> You probably remember timeline because I think you shared that you're um somebody's going off to college. Um but uh but I I was educated on the need within our community and the pressures that are there. And this is not a space that when I got into office, I was real gung-ho about until almost every room I'm in. Whether it's workforce development, economic development, um, community, whether it's aging in house, uh, aging populations trying to downsize, whether it's young families, it all comes back to talking about housing. And I think we have an opportunity, particularly in that area that I'm I'm most passionate about, is that step up housing. We've got a lot of rental properties. We've got a lot of 500 plus,000 houses. We don't have a whole lot of ownership opportunities in that 300 to $350,000 range. So, I say it as a word of encouragement. You continue to have my support as we move into that space. we as a community and it's not on your shoulders alone. We we have to deliver something within that those middle rungs. We're missing three or four rungs on the ladder. And if we can continue to do that, part of the reason that I'm up here, my motivation as a six and 10 year old that in 15 20 years, I want them to be able to choose Carver County. And right now, unfortunately, if they chose a profession and a lot of the things that are county related or or teaching, they wouldn't be able to live here or they wouldn't be able to live in they'd have to commute. And so, that's part of what drives my passion and support for this. So, continue to go. I know that there's no lack of things that come your way and anytime you open a newspaper or a report online, there's something more that you have to navigate and so just as a note of encouragement to continue to build on the 12 months that you've been in office or in your in your role. So, thanks, >> Mr. Lynch. Anything? >> Um, I think Allison's done a wonderful job. I' like to thank board member uh Mr. Williams here. he uh has done uh came from the private sector and uh he constantly tells me how great the CDA board and uh these ladies right here do. >> Yes, he is. >> Yes, he is. And he >> You guys want us to vacate the room? >> Constantly tells me how well the CDA is operated. So, I'm be more than happy to support this today. >> Well, excellent. Yes. Uh this is a uh confounding issue that you guys have to deal with. Many many issues over there. It's not simply just the housing and everything else like that. Uh I have a very uh my number three daughter and her husband uh uh who live in South Minneapolis uh and they intend to move and they're in the process of finding out where that is. where they'd like to live in the Lynen Hills area of Minneapolis, which I don't know if you know what you can get for about 800 to a million dollars in Lynen Hills, but it isn't good. And it gets even worse as they head head uh west and south down to Adina. And so the housing market is what it is. I know we are trying our best. I know the states infused a lot of money with the sales tax and everything else. Um uh but uh it's a big issue and uh you guys are handling it as well as we can expect I think here in Carver County and uh quietly and and proudly. So uh thanks for all your hard work and I tell you Frank would come in here with a 24 and then whittle it down to six. you you saved us that 24 part and uh you just got busy and and and got it to six and uh uh knowing that you could do more by law and everything. So uh on behalf of the taxpayers, thanks for for the efficiency and the uh and the hard work. So I forget who made the motion, maybe Commissioner Fehey and a second by >> Mr. Commissioner Udman. Any any other discussion on the CDA budget and levy? Hearing none. All those in favor say I. >> I. >> Those opposed. Motion passes. Thank you very much, >> Mr. Chair. I'd like to make a motion to recess as a county board and convene as a regional rail authority. >> Second. >> I have a motion by Commissioner Lynch and a second by Commissioner Udman to adjurnn as the regional rail authority and reconvene as the county board. Any discussion on that motion? Seeing none, all those in favor say I. I. Those opposed. Mash motion passes three to three to zero. All right. >> Morning, Mr. Chair. Lyndon Roben, public works director, railroad engineer, part-time. So, we here Oh, we're down to three. >> The three best >> railroad engineer. Do you toot the whistle? um remotely. I've got an app on my phone now. So, we're here to consider the 2026 budget request. Mr. Chair, commissioners, um as you know, the annual budget, the county portion, the levy portion, uh majority of the funding pays for salaries and some goes to corridor stewardship and preservation. Then we also have a CIP, capital improvement plan within the regional rail authority budget. U we utilize grants uh from the Met Council and others for that as well as county funds and those fund preservation projects and replacement projects on the regional rail corridors. A lot of detail here, but just focus if you would on the yellow the yellow box. So this shows the next 2025 and the next six years of the regional rail plan or CIP. So last year's levy 226,691. Our proposal is to increase that again by 6% similar to the other budgets to 245. We do get a little bit of lease revenue. So the red numbers are the the expenses. Majority as I mentioned is salary. Uh that's maintenance staff and general sub administration and some help from the sheriff sheriff's office as well. That makes up 169,449 miscellaneous dollars and then stewardship. That's the 74,843 preservation for the three railroad corridors. So you can see where we're at in in 25. We do have a pretty healthy fund balance. And reason I added this part this year is if you recall, we did get some funding, some grant funding from the Met Council for the railroad uh the UP railroad line. If you recall, there's two grants there. One cash in the bank, I think Mary Kay for 25 for 1.6 million. And basically the Met Council provide us a grant for the the county to buy the property from the railroad. So that's that's a a unique opportunity and we've got that money and then we're expecting another payment in 26 and that does allow us to really program out our future needs on the CIP part. And uh we have that's still a work in progress but we do have some needs out there. You know those railroads by default are are old. So there there is some repairs and bridges and culverts stabilization work that needs to be programmed into the future, but we're only we're not using any county levy for that. That's not the plan. And then there is I forgot about one more grant. There's a Met Council grant that we receive funding for to do some stewardship on the Lake Minnotonka LRT line. That's some uh calo work when if you remember our regional rail authority you guys bought the property from Henipin County and with that we applied for a grant with Met Council for stewardship that is approved so that'll help with car replacements between Stagger Lake and Rolling Acres Road that will be done in conjunction with our mega project on Highway 5 be done kind of at the same time. So, >> will it be done with the tunnel under? >> Yes. >> Okay. >> Yes. >> So, for 25, just a little bit of highlights. The big one this year was um Commissioner Lynch's one of his favorite projects, the County Road 10 trail head that is almost done. Um which is good news. I think talking to Marty, by the way, Marty, our parks director, >> did retire yesterday. So, um that's a that's a big change for us. But anyway, that should be done and open hopefully next week, weather dependent. Um, so that's a that's a nice little resource to get trail users down at the Dakota Rail Trail. We also did some rehab or some maintenance work on the pavement itself on the trail. We got two bridges we need to repair on on Crane over Crane Creek on the Dakota Regional Rail, too. They are old and aging. and we we've got engineering done on those. So, that should be happening this year or early next. Uh Lake Minnatonka Regional Trail. Those are the cowarts that I mentioned that we have a grant for. And then the old up line on Minnesota River Bluff Regional Trail. There's some huge pipes there. And this is one on Bluff Creek that's going to need a liner and some uh some repair there as well. So those are all programmed in that CIP that I showed that goes out to the next till 2031. Uh then there's a uh river stabilization and bridge replacement project along the Crow River by County Road 30 there that needs to happen in the next six years as well. So picture of that. So that's a little flavor there of what's happening now and in the future. But uh before you, Mr. Chair, is the motion we're we're requesting for the Carva County Regional Rail Authority. >> Okay. Any questions or a motion? >> I'm glad to see that the uh County Road 10 trail head is almost finished. Um, with that, I just like uh make the motion to approve the setting the Carver County Regional Rail Authority 2026 preliminary tax levy at 245,000 and 226 and 2026 budget at 247,000. Okay, I got a motion by Commissioner Lynch and a second by Commissioner Workman. Any discussion? Hearing none. All those in favor say I. I. >> I. >> Those opposed. Motion passes. Commissioner Lynch. >> I'd make the motion to adjurnn as a regional rail authority and reconvene as the county board. >> Second. >> I got a motion and second to do just that. Any discussion? Hearing none. All those in favor say I. >> I. Those opposed. Motion passes. County administrator report. >> Very brief. Uh no board meeting next week. However, uh there is a ribbon cutting as was mentioned. Carver place. Sounds like some folks are moving in already that can help cut the ribbon. So that's Wednesday, uh September 10th at 100 p.m. That's all I have, Mr. Chair. >> Okay. Do I have a motion to adjourn the regular session? >> So move. >> Second. I got a motion by Lynch and a second by Commissioner Udman to adjourn our regular session. Hearing no discussion, all those in favor say I. I. >> I. Those opposed. Motion passes. Thank you very much.