2027 Non-Levy Budgets, 2027-2036 Capital Improvement Plan (CIP) Review, and 10-Year Financial Planning

The Finance Director provided an extensive overview of the city's non-levy budgets for 2027 and the long-term Capital Improvement Plan. Key points included proposed utility rate increases for water (1%), wastewater (3.25%), and surface water (5.25%), primarily driven by street infrastructure projects. The discussion also covered increased IT costs due to Metro Inet charges, the significant impact of the ladder truck purchase on the Equipment Fund, and the successful pavement preservation program, which has improved road ratings and reduced debt by allowing more cash payments for projects. The importance of strategic financial planning, including the transition to a cash-based approach for some projects, was emphasized to mitigate the impact on taxpayers and reduce the city's overall debt burden compared to other municipalities. The reallocated state grant for the water tower was highlighted as a major factor in reducing a previously anticipated larger water rate increase.

Direction on the Proposed 2027 Maximum Levy Certification

Dissent: None

The council was presented with a revised option for the 2027 maximum levy to meet the 6% target. The initial proposal of a $40,000 reduction in the EDA levy was modified. The new option involved increasing the general fund's investment income by $25,000, leveraging favorable bond rates, and reducing the EDA levy by $15,000. This compromise was deemed viable given the EDA's healthy fund balance and the current usage of its programs. The council members expressed their agreement with this proposed direction.