The central focus of the meeting was the budget hearing, where the commission discussed and ultimately approved a tentative millage rate of 6.1644 mills for fiscal year 2025. This rate represents an 8.25% increase over the rollback rate of 5.6945 mills. Chief Financial Officer Patricia Drot and City Manager Wayne Carino presented the budget details, emphasizing the necessity of the rate increase due to rising healthcare costs, competitive salary demands for city employees, and increased material costs. One commissioner stated, “We can’t run the city without the additional funds,” pointing out that maintaining services such as infrastructure and leisure services is critical. Another commissioner noted, “If we go any lower, we’re going to have to cut more things,” reflecting a shared concern for preserving the quality of services provided to residents.

Public comments during this discussion included a resident questioning the calculation of the millage increase. Drot clarified that the percentage change is calculated by taking the difference between the two rates and dividing it by the lower number. Another resident, Dave, suggested considering a rollback to the previous rate, arguing that the city operates with a budget based on full employment, which is rarely achieved.

The commission also delved into the appropriations for fiscal year 2025, highlighting a 9.06% increase in the taxable value. A significant aspect of the budget discussion centered on the projected revenue collections for property tax, where a 95% collection rate is mandated by state law. The net tax revenue for the general fund at the rollback rate was reported as $16,149,000, while at the current millage rate, it was $17,488,000.

Personnel services costs were highlighted, having increased by 7.4% from the previous year. There was a dialogue regarding the differences in percentage figures between the general fund and citywide personnel costs, with some confusion expressed about the definitions of general fund versus all funds. Questions arose regarding capital outlay reductions, which were recorded at 8.6%. Despite these reductions, reassurance was provided that police vehicle replacements remain in the budget.

The city’s financial management, particularly concerning the stormwater utility and healthcare funding, was another major topic. The stormwater manager presented a plan to address a negative reserve balance, which involves implementing rate increases that were part of a utility rate study approved by the commission. The healthcare fund’s costs are being moved into a special internal service fund to facilitate better tracking of expenses.

The city’s overall debt situation was also addressed, with current debt projected to decrease from $36 million to approximately $33 million. Pension contributions were another significant topic, with contributions rising due to poor market performance in the previous three fiscal years.

Concerns were raised about the accuracy of financial projections, particularly regarding reserve balances. There was a discrepancy noted between a graph indicating reserves dipping below $10 million and the reported reserves being closer to $20 million. This confusion highlighted the need for clarity in financial reporting.

The discussion also covered the use of reserves to finance the city hall project, with approximately $3 million drawn from reserves. Building permit fees were addressed.

In addition to budgetary issues, the commission tackled the challenges posed by vacation rentals. A resident expressed frustration with the proliferation of vacation rentals in her neighborhood, noting that three Airbnbs had opened near her home. She described issues such as noise complaints, litter, and inappropriate behaviors from guests. The commission acknowledged the hiring of an additional code enforcement officer specifically to address vacation rental issues, but noted that managing the approximately 1,200 rental properties in the area is a significant undertaking.

The commission discussed a drafted ordinance aimed at addressing misleading advertising related to short-term rentals, which had proven effective in another city. This ordinance is intended to serve as an additional enforcement tool to manage occupancy violations.

The meeting also included a proclamation presented by representatives of the nonprofit organization “Do It For Hunter,” emphasizing the importance of mental health awareness and the availability of resources like the 988 helpline. The discussion then shifted to concerns regarding vacation rental ordinances, led by a resident expressing frustration with the proliferation of vacation rentals in her neighborhood.

In unfinished business, the commission discussed the second reading of an ordinance to amend penalties related to various city code violations, including illegally parked vehicles and outdated references to municipal judges. This ordinance aims to streamline city code and was passed unanimously. New business included an ordinance prohibiting public camping and sleeping on municipal property, which received support from the commission and was also passed.