[Music] right at 6:30 so I will call tonight's truth and Taxation hearing meeting to order and jelene could we have a roll call please council member Erikson here council member husnik here council member valendo here council member Roberts here mayor Bane here I um we don't have this on the agenda this evening but we would be remiss if we didn't start with the Pledge of Allegiance I'd like to invite you all to rise and join us for the Pledge of Allegiance the flag of the United States of America and to the for it stands na indivisible andice all right like to welcome everybody that is here tonight for our truth and Taxation hearing um we are going to many times when we take public comment we take public comment at the very beginning of our meeting we are going to turn this agenda on its head just a little bit tonight we're going to start first with a presentation from Kevin to walk through what is proposed for the 2025 budget and then we will open up to Public public comment open up for public hearing if you are signed in we will go in the order of your sign-in sheet if you have not yet signed in or if you realize during the course of public comment that you would like to still make comment that is fine I will open it up once everybody that has signed up to speak has had an opportunity to do so after we've closed public comment we'll bring conversation back to council for consideration perhaps some additional questions and then ultimately should Council choose a vote on this evening's budget and also our um 10year Capital plan with that I'm going to turn it over to Kevin to walk us through tonight's presentation uh thank you mayor and city council I have a presentation to go over the highlights of the 2025 uh budget and tax levy so with that we'll just get started so here tonight we're doing our truth and Taxation meeting so really what the meeting requirements are we're going to provide a summary of Where the 2025 budget is being proposed to be approved at also what the 2025 tax levy be set at and then as mayor Bane said give the public opportunity for input after this presentation so this was a pget calendar what that was presented the city council all the way back in April so as you can see the city's been working on this 2025 budget going as far back as April um so this is just it's a year-long process the city council has put in a lot of work to get to where we are at this point we've had a lot of uh budget discussions a lot of budget workshops uh to get to where we are at tonight in regards to the 2025 budget and uh the 2025 tax levy this slide is just a summary of all the uh budgets that the city adopts for all of its funds uh the main one just to point out is that Top Line the general fund this is the main operating fund for the city as in years past you can see that the revenue and expenditures equal the same amount therefore having a zero impact on changes in fund balance the other highlights um would be the capital funds would be the par dedication fund Capital Improvement fund Capital Equipment f fund there are some increases and decreases you see there but that's where we incorporate the 10-year Capital plan and 10-year um financial management plan as well as our plan either increases or decreases as the city plans uh for the future this slide this gives a visual of where the city receives most of its revenue from for All U budgets um excluding their our Tiff funds and our Enterprise funds you can see from the pie chart that big chunk of the revenue does come from the general property tax levy across all funds um a big portion of the pie of about 20% is Bond proceeds that are being that are being proposed to be issued next year for the NorthShore Trail Improvement project this slide this shows where the majority of the expenditures are um as consistent with 30 years most of those are in the general fund as they are that is the chief operating fund fund for the city uh that's what um most of wages fall into this to keep the city operations going um at the level of service that the city wants this breaks down the um expenditures by category across all funds um a big category is as consistent with prior years is the police department this with the amount of staff that's in there and the wages that are mostly tied to that therefore make up the largest uh piece of the with on this graph otherwise the other percentages and U along with the police are consistent with where we have seen them in previous years so with that uh looking at the tax levy for uh what's being proposed in 2025 if we go right to the bottom the total Levy is being proposed at 16 just over 16.4 million which is an increase of about 99.87% from the 2024 tax levy uh you can see the summary of changes uh the majority of it is within the parks and trails fund uh the Eda fund has um a new position in there that's being funded and then the general fund which is the operational fund um has seen an increase of of about 8% we're getting into some more details um as we go along here so where did we start and where are we at tonight so back in August it the levy amount was proposed at just under 17 million and that was a 13.54% increase back then so between August and all the way up till Deber 5th last week City staff and city council have worked on uh the budget has made some adjustments to get to where we are at today at this meeting so we made an adjustment to the parks and rec position where originally was in the budget at a higher grade we readjusted the plan for that position and had some wage savings there and then at the September 23rd meeting there was a reduction of 250,000 in the park dedication fund Levy uh this was made before the required uh preliminary Levy submission that was due to the county at se on September 30th so between September and December 5th up to last week the city council and staff we held a budget openhouse we had an online budget survey they asked for public input we held the budget uh Workshop again on November 18th and then most recently as December 5th where city council gave direction to staff where we reduced the general fund Levy by 150,000 as looking at 2024 projections we're able to reduce that uh contingency fund balance line item to meet our fund balance policy and then we also uh were given direction to reduce the Capital Equipment Levy by by 100,000 and use some Public Safety Aid dollars that the city received at the end of 23 uh to help supplement some of those Capital Equipment purchases as relates to uh Public Safety so that all said as the previous SL show it was just over 16.4 million where we are at a 99.87% increase as being proposed tonight so why the why the tax levy increase um we need the increase and maintain the level of service that the city has from plowing city streets to parks and maintaining Parks Public Safety fire police we need to maintain that level of service that uh the residents want and the city council has given us Direction on as well there are also new positions in this budget that are being funded through a tax levy one is a planning and Eda supervisor and there's also two part-time community service officers in this budget as well there is a amount for a class and compensation study this is has not been done in the city in quite a few years and the purpose of that is to retain and attract uh talent in the city there's also an increase in the building maintenance fund tax levy as even though most um this build for example this building is relatively new we do have some maintenance items coming up that need to be planned for in the future we also have 140 thou 45,000 uh, Levy in this 2025 budget for downtown median and Landscaping beautification and as well as increases to Capital Park Improvement and for maintenance related to our Park infrastructure so there's also some inflationary increases that the city cannot control um some of those are this um wages and benefits tied to our Union approved contracts when looking at the increase from the 2024 budget to 2025 which just the current positions not any of the new positions that I mentioned it sits at about 5% increase um from with the wages and benefits and then we also see increases along with what many other residents see increases in insurance electric utilities our computer support information technology fuel we can't necessarily control these costs and that's accounting for about a 2.87% increase from 2024 [Music] so what's the impact on homeowners so the average home value in Forest Lake for in 2025 is at top row of 388,000 so going across the top you can see the increase is 13408 81 cents for the city portion of the taxes this equates about $11 per month to the average homeowner in the city of forest lake so where does the tax levy goal majority go to general fund to operate the city the city um all the remaining ones there are for Capital Equipment Capital Improvements such as streets and infrastructure Park improvements and maintenance that goes along with our Park infrastructure as well as our Debt Service uh requirements for debt that the city has issued to help fund streets and whatnot so this graph just shows where the percent increases have been for the city over the past 10 years years uh you can see that last year he had the 13.91% increase with this year showing um as proposed tonight the 99.87% increase this is just a history of where the tax rate has been for the city as you can see we the city has hovered right around 40% for the past uh few years there was a decrease back in 20123 as we did see those Mar the market uh valuations have a significant Trend upwards which caused our tax rate uh to go down but historically when you look at the city our tax rate has been hovering right around that 40 40% Mark give or take so with that that's my presentation um if there's any questions the council has for me right now before we open the public hearing otherwise um we can go from there Council any questions of Kevin before we open public comment no okay thank you Kevin all right let's open up the public comment portion of our meeting um we'll start with those who have signed in we also will have an opportunity for anybody who might be online that wishes to speak if you are online and wish to speak um when we get to that portion please raise your hand online and Julene can let you into the virtual meeting heree were you speak at this or Reg all right let's open it up anybody who would wish to speak in the truth and Taxation hearing this evening not seeing anybody come forward in the room Jolene is there anybody online and I know you have also maybe an email that needs to be read into the record correct we don't have any attendees online this evening mayor but I do have the one email from a resident so I can go forward let start there okay um this was received by Mr Chris voxin Forest Lake resident at 4 51 217th Street North Mr voxin stated Forest Lake City Council Members mayor Bane and mayor elect Roberts please have this email added to the community feedback at the December 9th city council meeting regarding proposed property tax increases unfortunately I will be traveling and unable to attend in person I'm sure we are all aware that local wages have risen around 3% on average and the Consumer Price Index Rose by over 2.4% over the the last year families and companies are tightening their belts to avoid going into debt I received my proposed property tax statement for 2025 the city of forest lake property tax portion increased by 14.1% why does local government not see the need to show the same kind of restraint that individuals and and businesses need to exercise I am strongly opposed to this increase given the current economic environment the city needs to be accountable to the taxpayers of forest lake by staying Within 5% increase respectfully Chris foxland thank you all right is there anybody else that would like to speak nobody okay and is there anybody online no may all right we will last chance all right we will close close the public um comment portion bring um consideration back to council Council let's open it up for any questions comments thoughts you may have um this evening before we proceed I um not seeing any council members jump in here I do want to just give a little bit of context around um my support for the decision tonight um to reduce or the decision that's proposed by staff to reduce um the proposed Levy from what was in the preliminary Levy um down by the $250,000 um to what is actually um being proposed this evening I've been kind of a big proponent throughout the year that as challenging as these numbers are um we still have a lot of gaps to fill and a lot of catch-up to be done um and specifically in the area of our Parks um it is an area where we are not yet fully funded meaning um what we proce what we have for um backl in maintenance is a there's a lot of open space between that backlog that needs to be done and what um annual Levy dollars that we are um putting forward to support those needs um this is an area of um a theme that we've had unfortunately over the last several years we have made some great strides in catching up on streets we've made some great strides in catching up in sewer and water and other projects in areas where we've had deferred maintenance but Parks has been that piece where we are not yet fully funded um and also I would also acknowledge that we still have some open staff positions um recognize that there are some staffing positions that are being proposed tonight in the budget and are being funded but there is still a gap between um the services that we say that we want to be providing to the community and the services that we are providing to the community and this too has been an area of catchup over multiple years and so in that light of catchup um I've been a proponent of gosh we've really got this is painful but it doesn't get any easier and we need to to recover these gaps um and so I've been a proponent of we need to stay pretty true to that initial preliminary Levy number um however when it be we became aware in the last couple of weeks of two different things I would say have changed one is we became aware that 2024 we have accumulated a budget surplus and um one of the line items for this year's budget is to fund fund balance as we are growing we have a requirement to maintain that fund balance and if we are and turns out we are able to fund that growth with 2024 budget surplus to me that is a natural pivot and something that we absolutely should take advantage of one of the other things that's in the budget this year is routine annual um type charges that we have for Capital Equipment for um police and fire for Public Safety and we have received in the last couple of years um funding dollars from the state that we can put towards those types of purchases and as we've worked with the Chiefs on that list and how those funds should be dedicated um it became apparent that we did have a surplus of unused funds and again if there's an opportunity this year um in 2025 upcoming to apply those unused funds and not increase the levy I think it's prudent to do so so these two topics were discussed um in a special meeting with Council last Thursday um and I just wanted to give highlight to that because it has been a change from some of the meetings that we've had up to this point um but again and if we're able to identify dollars that make sense for those 2025 needs um the general consensus was in our special meeting last Thursday and we'll certainly have an opportunity here to talk more tonight but let's certainly take that opportunity and provide some relief nobody loves a double digit increase um and if we can be smart and find some ways to make those funding needs um we're able to both accomplish what needs to happen with fund balance we're also able to do what we need to do for um Police and Fire Equipment um and let's be smart in how those dollars are allocated so with that um I'm happy to support the red reduction that we have tonight um I'd like to thank you know council members and staff for getting to this point it has been um as as Kevin's um calendar presented a full Year's worth of work um and um I just think it's really important that we have that level of transparency and that you know that we're working as hard as we can to deliver the services that are needed and the streets and all of those projects that are needed um while also keeping this number as modest as possible um again we recognize it's it's been a challenging couple of years from a city um tax perspective and we don't like it as much as anybody else with that I will open it up for other comments that Council may have uh else Madam mayor nice mayor nice job explaining that out um it has been a long process we did start this in April and myself I'm I'm not a fan of double digigit increases we did take take that Big Bite last year we've we've reinvested we've invested in infrastructure roads it's the number that our engineer tells us it's a million dollar per mile to do any roads um and we've kind of we've not done that efficiently enough or else we've kicked down the kicked the can down the road and so we are playing catch-up there also in Parks uh I think this Council both last year and coming this up night years spent more in parks and we ever have and that's what the residents are telling us they want to to have those amenities that's how you grow Community that's how you get more people to to live here to support the businesses and the schools and so um those two things are are are major reasons why we have this increase and then as Kevin pointed out those fixed in uh costs that we can have no control of uh everyone else and their own budgets at home or at business realize that everything goes up so they to incorporate that in increase of of fixed cost on top of actually wanting to do some things to create more reasons for force people to live in force Lake we landed at this this number I'm much happier I would not have supported a double- digit increase I appreciate staff uh especially the Chiefs willing to uh use those Public Safety dollars to help us get to this point and so um I will be supporting this for uh incre this budget for 2025 any other comments additional questions no I'm I'm in support of this budget as well just one thing I will call out um is as we look next year how we're going to spend some of these Park dollars I think it's important that we have up-to-date conversation especially with a Park Board um so that we are investing those dollars in the right places in the right parks at the right time that's the only one caveat will make and that's been more relevant to the 10year capital plan but um I am in support of this budget with that okay any other comments I'll just add that um like everyone else it's been a long year of budget conversations um as it typically always is but you know in those conversations it's always that Balancing Act of making sure we are being um um responsible fiscally and then also making sure we are hearing the the community members like what Blake said um because we have a lot of community members always coming in talking about parks and how we they want more amenities for parks and so we are trying to do that this year um we're not fully there yet we aren't fully funded but we'll get there eventually just like last year we were able to fully on the roads so I think um this budget is going in the right direction I'm happy that we were we were able to lower it and um I just support this budget so I also will support it mayor man uh one of the things I've have been a big advocate of is uh making sure that the public knows where the dollars are actually going and I think Kevin's done a pretty good job of that over over time we just got to take the time to really look at that and uh see exactly where those dollars are going especially if it's a street in front of your house or in particular or or uh sewer work or whatever the case may be and there's always unforeseen things coming up in winter time too so the contingency is something that uh I don't know how we could get along without it so I I will support this very good this budget with that um I would move that Council approve resolution 12 92401 to adopt the final budget for 2025 is there a second second we have a motion and a second any additional discussion hearing none all those in favor signal by saying I I oppose and motion carries all right our next item this evening is consideration of the 10-year um capital and financial plan and also the 10-year um financial management plan and Kevin anything you want to kind of highlight for us before we consider uh yes mayor ban this a couple high notes um last year is the first year that city the city council improveed their Capital Improvement plan I just want to reiterate that uh the plans that including your packet does not commit Council that anything in those plans it's as a commitment that this Capital Improvement plan and the financial management plan that are is included this year is an important part of the city's process and the city adopts these as an official uh budget document and planning document for the future so just want to point that out that um nothing in this commits the city to do anything in 2026 and Beyond is this the plan for what the city has right now and through the city the budget process this year as you found out many things change as we go through that process so I just want to point that out uh just a high level summary of Where the uh tax levy is projected to be at in those plans in 2026 based on uh the decisions made going back to 24 and also in 2025 uh they get the city up to funding where uh the funding levels it needs to be um it is looking at a 14.69% increase uh with the cuts and changes that have been made um but a city has seen this year a lot of things Chang between how the end of 2024 shapes out and how 25 20125 is going to look at um but that says taken into consideration everything the city knows now and where the funding levels need to be um so with that I just ask that um as if the city council has any questions for myself or that you approve resolution solution 1209 242 for the Caper Improvement plan and financial management plan thank you Kevin Council open it up any questions or comments on the 10-year plan Kevin thanks for that context um I am been a big proponent of us having this 10e plan in place um I remember making these votes on budgets in years where we hadn't gotten their yet we didn't have a 10year plan and um I I don't know how we how we made some of those decisions just not knowing what the impact would be in future years and so I am very glad we have this as a tool I would also though caution and just say that there are things that we talk about within the city that we would like to do that still aren't in the 10-year plan and so part of this benefit of catching up on some of this deferred maintenance is we can have a plan for it and we can know what the impact is going to be on those future years um there was a time when for example we didn't know when we were going to get to Northshore Trail and we didn't know how exactly Northshore Trail was going to be funded and thankfully those days are behind us but there are times when as we're considering that Northshore Trail project and somebody will say well wouldn't it be nice if we could actually put a bike path along Northshore Trail or a pedestrian path along Northshore Trail some of those things that we talk about that we'd like to have in the community they're still not in the plan and so again this kind of goes back to this annual Levy number and as painful as it is it it it kind of it points to why that number needs to be as high as it is is there are things that again we want to have within our community that still aren't reflected in that plan downtown re Redevelopment is one of those areas we've got a lot of future um opportunity and expansion in our Southwest quadrant those are things and that will come up over the next couple of years that we still don't have fully baked into that 10year plan um I don't mean to be too alarmist but it is what's in the 10year plan is a start but it's not a full exhaustive list of of all of the things that are going to come before us um and also as we are thinking about that and as we're thinking about how do we do those things with some Partners whether that would be state or County Partners we need to have the foresight to get those plans in place and so again this getting into this 10-year planning cycle is um something we have started and we thankfully have a draft mapped out but as Kevin said look at those numbers as a draft um and how those project dollars are specifically spent are just things that future councils are going to dig into to um and again it's partly why this you know having this foresight and taking this vote tonight on just aate plan is a commitment of yes we are still considering um and and building into current year decisions what is going to be happening 10 years from now so other comments on the 10e plan thoughts all right we're ready for a motion if anyone's ready I'll make a motion to approve the uh resolution 12092 2402 approving the 10-year Capital financial plan and 10year financial management plan is a motion is there a second I'll second it we have a motion in a second any further discussion hearing none all those in favor signal by saying I I I oppose and motion carries all right that is the end of our planned agenda for our truth and Taxation meeting I will entertain a motion to adjourn so moved second we have a motion and a second all those in favor signal by saying I I oppose and we are adjourned we're going to give us just a couple minutes break and then we'll start here with our city council meeting right at 7 o'cl and we're adjourned [Music]