2027-2028 Capital Equipment Fund (Fund 401) Allocations and Fleet Needs

The council reviewed proposed expenditures for the Capital Equipment Fund, focusing on 2027 and 2028. Discussions included the potential deferral of an additional pickup truck to a later year, assessing the need for a new 60-inch mower due to expanding park areas, and the search for a larger used air compressor for irrigation system maintenance. A key proposal was to purchase a $35,000 grass skid for the Fire Department, to be funded by the sale of Rescue 21, which is expected to net approximately $100,000 for Fund 401. Significant debate arose regarding current and future space constraints at fire stations, especially with the upcoming Engine 21 replacement and the decision to retain the Tender vehicle. The council requested a comprehensive fleet inventory and long-term plan to better understand asset lifecycle and space requirements.

General Fund Budget Adjustments and Departmental Initiatives

The council reviewed proposed adjustments to the General Fund, including a projected $200,000 increase for recycling services, the budgeting for new city planner positions (assistant planner already hired), and realigning professional services costs (e.g., Stantex, engineering). Key departmental changes included adjustments to Police Department salaries, benefits, and overtime, along with a proposal to move the Flock system's professional services funding from the Police budget to a new, Council-controlled Emergency Fund. For the Fire Department, a $98,000 increase was proposed for salaries and benefits, with $78,000 allocated for expanding the on-call/overtime crew's hours. Initial performance data for the on-call crew was presented, prompting further discussion on efficiency. Additionally, the council discussed increasing the Lake Aid funding from $15,000 to $25,000.

Pavement Management Fund 2027 Tax Levy and Street Projects

The council addressed the 2027 tax levy for the Pavement Management Fund. An initial plan proposed a $300,000 increase, bringing the total to $1.1 million. However, with the council's directive to keep the overall tax rate at 36% or less, staff suggested a $150,000 increase, which would align the rate to 35.88%. Discussions revolved around the feasibility of ambitious street improvement projects (e.g., 114th Street, Lundell, Rush Creek) without significant external funding and the need for a realistic, long-term pavement management strategy. The council sought guidance on how to balance project needs with tax rate limits, acknowledging the long-term benefits of sustained investment in pavement management, but also the challenges of securing grants and avoiding perpetual project deferrals.