##VIDEO ID:29AvnChjvJg## for light call over the city council meeting for Monday August 26 2024 everyone please rise for the Pledge of Allegiance I PL Al 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 okay roll call uh Brian W gers is absent Kevin kadada here Tim Roode here Cindy fur here and Scott pav okay there's one item on the agenda to discuss the city's 2025 preliminary budget and property tax levy any additions deletions or corrections to the agenda we approve the agenda motion by councilman kadada second second by council person fear any further discussion all those in favor I I opposed motion carries there are no minutes public hearings presentation of citizens petition and comments comments limited to 2 minutes nothing on the consent agenda on to Old business discuss the city's 2025 preliminary budget and property tax levy Mr Ericson all right thank you mayor and uh members of the council uh this is our sixth meeting pertaining to the city's uh preliminary 2025 budget and property tax levy um we've covered all of the Departments with the exception of uh the Eda Library Water and Sewer which we'll be um going over tonight uh as with all the the past um staff reports for the the budget meetings included our um options one through four for the property tax levy which have been um discussed and as has been discussed at uh past meetings uh option three uh is being used um plus the levy for the the um the city hall project um those numbers haven't changed I just highlighted them to make them uh a little easier to understand so you can see what the the total increase is and and of that increase uh what the the city hall portion uh Debt Service is as far as um departments we'll start with the the Eda um uh proposing a a $40,000 allocation from the the property tax levy to fund um the the Eda um with the Eda creating a separate revolving Loan Fund fund 208 at their last believe it was their last meeting um that is the only Revenue that the Eda will actually receive the uh loan repayment from um the pet stop Vet Clinic uh would go to that fund 208 um and that will um continue to build that that fund for uh revolving loan funds um as far as expenses we got um some of my my time uh the Community Development planner and the City Treasurer um overtime would be uh pertaining to the city city treasurer you know FICA and P those are just straight percentages based off of wages paid um office supplies is just general um training and education is for uh attendance at the chamber annual dinner not proposing anything for Professional Services um this year um we weren't sure where we were going to end up with that small cities Grant um so we did budget some some funds for that um but we're not anticipating any funds being budgeted next year no no uh engineering legal is just a plug number to have a dollar amount if we need to get an opinion or two from from the city attorney um minimal amount for postage advertising is where um we allocated $7,500 towards the the marketing campaign uh at their last meeting the Eda met with APG uh Tim Mart of of APG to talk digital marketing marketing to see how that was going or is going and um what changes could be made with the city um having a deal on the last lot in the The Business Park um through there was discussion through the course of the meeting at at the end uh the Eda motion to uh end that that contract with um APG for the for the digital marketing a Hol um so from Westra marketing um was at I the last two Eda meetings and reviewed a proposal for um social social media marketing um videos posts things like that um the Eda did approve that so we'll actually be working with her um well Corey and I will actually be meeting tomorrow to go over what she's proposing for um October uh insurance is just based off of employment dues and sub subscriptions none uh gifts and donations 3,000 that is um where we would make contributions to the the chamber for example the southern Minnesota initiative Foundation um or just general if you know if it was earlier this year or towards the end of last year um the Eda made a donation to The Community foundation's endowment fund uh expenses of uh just over $38,000 know so Council has any questions on on Eda um I guess I didn't I didn't go over but a history on funding of the Eda uh prior to 2019 there was some money received from lot proceeds from the sale of lots and the the business part the was our treatment plant and then in uh 2019 50,000 uh last year 40,000 this year 50,000 so I guess just a little history on on funing of the Eda and how it had been funded in the past um when it wasn't receiving a portion of the the property tax levy uh no questions there the the library uh revenues essentially consist of the property tax levy uh funding from Rice County and then fees and donations um expenses obviously wages and benefits office supplies just general items training and education would be safe assure and the um attendance at the the Minnesota Library Association conference uh Professional Services has a number of expenses copier um we pay the Villages of lawdale our I guess we'll call our monthly rent payment uh celco uh fire extinguish certification and then um the libraries clean every other every other week so twice a month uh dues and subscriptions um Zoom uh the Minnesota Library Association archive social um our subscriptions to newspapers overdrive um our accounting software uh and and just just general if there's a a publication or some other um addition to the collection uh would that would be subscription based uh gifts and donations are what is used to um fund programming such as like the summer reading program uh things like that uh Capital outlay would be for um addition to the The Collection whether it's um books audio um video that's where that would be accounted for I don't know if you guys have any questions on the the library is the dollar amount staying the same that we're allocating to them uh uh yes um what do we got so 24 23 was um just under 164,000 this year 172 and then um next year proposed at 173 I did get our um minimum maintenance of effort and and so it's 90% of the 2011 State Certified level um so just over $74,000 is what is the minimum that the city needs to contribute to the library um to maintain accessibility to um the services and programs that would I guess come through being part of the State Library Association Consortium I guess as far as as water um you know anticipating 10 new homes constructed next year I guess we'll see how that how that plays out if if that's accurate or um ideally it'd be more than that but I think 10 is is a is a safe how many is this year a couple per a couple budget meetings too I think we were 16 17 so I know left for Lots 20 25 somewhere remaining probably yeah um and I know he's working on a couple more um just came in here either Friday or today I ched with Lumis yesterday and uh he seems like he's going to go in the spring yeah I'm pretty sure he's going to try and get all his agreements and documents lined up I think before the end of the year be because that was was like 30 Lots or or something pretty good uh I believe yeah I believe a total was like 40 or 45 oh really and he was talking a phased approach basically bringing um I guess I'm not sure if it's going to be Hawaii or harvest path or or whatever right um but basically just stub the street out from Main Street right I I would expect some of that's going to happen so we just need to finalize um you know what what improvements the city wants and and what the county will require at some point in time I sounds like we should I shouldn't say easily but we should be able to come to terms pretty realistically with the County's participation and correct after our meeting with them they they seemed pretty amicable to to work with us and and make sure that something happened right okay um actually one question on the um on the AES building now that would do they only end up getting one whack and Sack charge based on the size of the facility or is it I don't remember how that worked uh correct it would just be um per um for connection per connection would be one per building though right a correct yes and they can size up right if they need size there's a spreadsheet for that too wasn't there if I remember yep yeah so it's like this 4250 that's just for a 1 inch service okay and then right I don't know if we have an inch and a half we have two four maybe up to six I think six is probably the biggest that we put in for which I would assume that they will will do for fir flow and so if I had to do that I had to do that then do they have to we have to tear up the road and stuff to get to the Noe we stubbed those all out in all the way up to 6 uh I believe that they all are 6 in in that that then it could get reduced down to one in okay I just was curious what the and I think the sewers eight CU typically on a home it's what one and four correct thank you I didn't mean to interrupt I out of that uh we build a safe Water fee which in turn we collect and send it to the state uh interest is based off of um current rates uh refunds and reimbursements are essentially uh Insurance claim reimbursements and our insurance dividend check um water sales you try to try to project as best you can and and uh use historical year to date I mean this year's not a a good year because I've never even had watered once at my house yet and that's kind of indicative of you know uh um getting ready for this meeting I looked as of the end of July we should be at about 505,000 in sales and we're at what 381 so um 44% compared to you know if you were exact per month uh 58% through the end of uh July what type of I mean other than find money coming in what type does that place any burden on anything as far as uh day-to-day no okay no um you know it would be Debt Service things like that understand that treatment plan payment uh and then just as far as rates um for uh we're just over 1,700 connection so for every dollar increase in the base fee um generates $21,000 a year so on a what is the water fund budget pushing a million what 1.2 in expenses uh takes a lot of uh increases or or a substantial increase to generate a sizable amount of of Revenue to actually make an impact uh or or pay for a project in water or sewer uh and then for every 25 cent increase um shouldn't be the base fee the per thousand gallon rate based on 7,000 gallons a month uh just over $36,000 a year so and I did include um with the packet uh a water rate chart that I update at the beginning of every year so our average based on 7,000 gallons would be just over $100 a month and then the sewer since that's based off of the first quarter of the year the average 5600 gallons so for the same usage in new prag it's $1 150 so we're $50 less than new PR uh Montgomery uh over almost $162 so again we're what $62 less than than Montgomery Elco new markets uh almost 114 so they're what $13 more more than us um then you get into the cities is where we get SCH um but so you know relative to communities our size um some of them were 50% less than what what their water water and sewer rate um or what what would be buil on the average of 7,000 gallons per month water meter sales again Bas 50% of the uh 10 new homes and then um historically uh late fees for for water have been about 2 and a half% of of overall sales uh any questions on on those uh expenses uh nothing U out of the ordinary office supplies are items that are actually used in the office uh continuing education uh same as the sewer saf isure and then just continueing education credits for for staff to um to maintain their their um water and and Wastewater certificates uh fuel we've talked about that we're anticipating a a decrease across the board Bo for having the fuel barrels at Public Works building repairs and maintenance is just general and that's where we pay for our water main brakes we we want what do we figure out a water main break is what 1,000 yeah by the time you the Pavements what kills us the patching I mean those patches are like 7500 bucks what say about 8 10 of them or I quite a few don't think so just want to budget for it that's all yeah you know we average um three to four a year I'd say is that it yeah and I don't know did we even have one over the winter they all happen like spring and all been fair weather they really have been well this winter was relatively fair weather too so correct um actually yeah the one Harvest was winter winter they seem to be going down though compared to years ago years ago you know that that whole area five as a whole I mean we spent a lot of time digging up water Ms and services that blew out um so those reconstruction projects definitely drove water main breaks down um the ones we're seeing now um if it's not Main Street North it's corrosion so it's just luck of the draw wherever the electrolysis is hitting the pipe and it's kind of a crazy force of nature that can do that let's see repairs maintenance Professional Services um anyone in time anyone calls a located in lawdale um it's it's free to 811 is free to Residents but we do get U charged for it uh PSN um any um payment service network fees um that we would be charged again Bank fees Franson Bank copier flow meter testing um it uh some of the maybe or not maybe some of the bigger stuff this year um um we've got to work on our Wellhead protection plan so we got an estimate of or a proposal for $25,000 to do that um they are recommending that a water tower sighting study uh be completed I do not think that as of now that is Bud oh this sighting yeah so Wellhead protection and the water tower sighting study and then we have um 3,000 for data link um any updates that would be needed and tie cards with with new homes what would the sighting study what what did they do with that um basically well another thing would be that PPL if we want to get on or the um yeah the project priority um intended use plan and project priority list that's a couple thousand dollars to get in the hopper for uh PFA funding low interest loan funding for for these improvements um basically it um tells you what where the tower would go what type of tower size what do we do with our current one do we keep that do we just have one um there's inground tanks with pumps there's a whole bunch of fact I'm just curious I know I know we've identified a so obviously we don't want to deviate from that but oh yeah I know CU addition we ran water M specifically in the business part it would just for that it would be building it out okay not just the location but correct okay makes sense I think the name kind of gives it a little off track it's like well we have the site that's that's what I was like why are we looking yeah it's more of what are we going to okay I follow you and uh we've never done one um they're recommending that a a rate study be done um just accounting for all of these proposed improvements over the next what well we're already working on 0o to five with uh you know half a million dollars for the the booster station uh to provide uh pressure to the upper Northwest portion of town um don't we end up needing to do that if we're going to get any of that PFA any funding or anything like that with uh for water like we did with the water treatment past yeah yeah we'll have to get on the um that's kind of two steps I believe it's the intended use plan and then the project priority list or or vice versa but it's basically based off of what your need is in in relation to other communities and then when you get in the the funding range then your project can can go now with that said you basically have to be ready to go when when the the funding's available and you're kind of at that point I just seem to recall that that was a deal we we we would we asked for the money they're like well if you you don't raise your rates you're not going to cash flow on well that was um well that was for the the water treatment plan C I just didn't know if that would be similar in this situation um yeah they'll definitely want to know what what our rates are and um they basically provide the funding I mean you can't charge $1 a month for water and get $3 million you know they're like hey you got to raise this up to get to get more of more um I don't say State funding but low interest loan funding through the public facilities Authority yeah CU we had to raise our what did we do raise our base base fee I think think $3 uh and then uh dues and subscriptions we've got annual software support for utility building uh real water dues and um annual support for our water meter reader that's through um census uh Capital outlay um kind of putting the brakes on replacing the water meters and more of a focus on replacing the mxus so we have more options um when it comes to well on Thursday we've got the meter purchase a new meter reader um equipment and we have to go with that one because our mxus we don't have all of our mxus switched over at the time to um provide other options for reading I I think at that point in time then it's you know there there's definitely uh an expense associated with it but it it sure would be nice to whoever's doing Utility Billing to push a button at City Hall and meters are red because it takes what one day one day now yes um it's just that's one that's initial one day and then usually Scott goes back out and has to do some rereads or cleanups or things that got gooped up and that's another two or three hours um but like Joel alluded to on Thursday you'll the one we have now it's acting up and it's not supported and we're we're stuck with one model that we can have so we have to be able to read them if we can't read them we're not building you mean we're not going to go back old school and you just got one left on little tag left on your door and read it yourself and sent it in that's the way it wasn't Eagle L reach your meter and the technology is so far forward advancing but the hard there's no manual way for us to read them anymore we used to be able to go and push a button on the outside of the house and this is what it is we can't the new ones you can't do that uh So based off of what is uh being presented tonight and it's consistent with pretty much every prior year um we're not funding depreciation um basically all that does is build up your your reserves to pay cash for your for your next project anyone have any questions on on that uh as far as the sewer very similar to water uh based on our sack fees on uh 10 new homes um we're not we discontinued the um the utility inspection um that that was required every time a house sold um just good intentions but never worked out well for the city I think it was a think I said good intentions and we probably caught some things but you know initially it was the cross connections making sure that those got eliminated so we weren't ey and ey and treating clean water um I think with our Recons we've gotten rid of most of them but then it kind of progressed to checking for this and checking for that um I mean it's what an hour or or more for two guys um we've gotten cameras stuck in people's sewer lines have to dig up front yards and find 10 things wrong and it's the city's fault and it's like you know what you have your inspection done yep and you buy it the influx of water that we used to see um when we started doing these utility inspections you know we could get a rain event say the say the wastewater treatment pl's taken an average of 200,000 gallons of water in at that time we could get a rain event and it would be over a million gallons of water now we're to the point you know this year is a great example to show um City's a little bigger now so we're taking in about 275 to 300 per day and these large three 4 in Rain events that we've had I mean we're talking 470,000 500,000 so they did their job and it just got to the petty Point weren't we do we have to resal manholes and stuff like that that was a so that that all it all tied together but I those the direct connections of people's sump lines to the sewer and that's a lot of water yeah but definitely manhole ceiling it all it all ties together uh interest again based off of um current rates uh refunds and reimbursements again insurance claims and dividend checks 50% of new meters sold um sales based on historical and again two and a half is pretty consistent two and a half% is pretty consistent on what the late fees being paid have been historically as far as expenses office supplies are all items used in the office um safe assure for training and education and um Wastewater continuing education repairs and maintenance uh General we just talk about manhole ceiling um this year or I'm sorry for 25 not proposing um any manhole ceiling uh Street Maintenance materials um the guys that been over the last couple years um renting that Mill and kind of lowering those and um adjusting the the the manhole and then Paving around it so we're allocating um funds for that instead of of manhole ceiling Professional Services is bile solids and if necessary um land fees banking it um proposing to continue the the sewer televising um locates flow meter testing and similar with other departments fire extinguisher certification and copier uh engineering is just general there's no um well I suppose with the exception of uh chloride um General and and data link for um for engineering uh General notices and Publications would be um anything that we would put in the paper for um our chloride variants testing um we are recommending that that uh be increased due to the chloride variance we're anticipating more testing being required dues and subscriptions um again Utility Billing annual support meter reader annual support uh Rural Water membership as far as capital outlay we're recommending that um last of the three Ras pumps be replaced last of the three and then The Debt Service all that uh breaks out for the the sewer fund based off of Street reconstruction projects that we've done um back to 2017 just under $26,000 of principal and and interest Far Cry from well over 400 with that that sewer plant payment um that I mean besides um short and long-term goals which is just kind of been a continuation of the last um several years budget discussions and and what's been talked about this year that's all I have if you guys have any questions or sewer what is that good to for population wise 10,000 our current system yeah I thought it was all of that 11 12 maybe I thought it was 11 when they were doing the I yeah I would say it was close to 11 on the flow calculations should last a quite a while yeah well it's designed for what 660 6 68 or something like that y so we're you know on a normal day still half capacity um I guess as of as of right now um we'll have to to add some things um between now and and when the the budget gets final adopt finally adopted um as well as of today I'm about 53,000 over so um over option three correct um I don't want to say it sounds b as not but um you know we've got 40 almost $50,000 levied this year for encrypted radios J the chief applied for that Grant so we may not need to um Levy all of those funds um you we did have to transfer from the liquor fund this year to to whatever general fund department and also included in the net Levy is um 173,000 for the the city hall project and that first we'll have an interest payment in August of 25 and the first principal payment in February of of 26 so I just need to finalize those numbers obviously we'll have a a balanced budget that's the the direction the intent the goal um there's just still a few things timing wise that are are kind of up in the air so we should stick around option three I mean sum oh AB absolutely absolutely yeah I mean it's basically just Ian how many general fund departments do we have five or six he department heads you can make you can you can decide what the cuts are going to be or I can so I didn't uh I didn't get a chance to meet with Joel this afternoon um but team lab stopped down at the end of the day um there who we purchase those bugs for from the wastewater treatment plant um I don't want to jinx us but we are tracking to skip spring hauling for biosolids which is great news um they finally they finally took push in the spring that's the one we want to get rid of yep that's the Troublesome one great good that's all that I have unless you guys have like like said any questions or anything else you want to bring up I have a question for margarit with the with the with the library being you know getting all put back together in the layout that you that you're having are you are you gaining any shelf space or not no no so reconfiguring didn't it didn't matter uh we had to be very very thoughtful to get back the same amount of sheling we had before okay it's a which is not to say it is a cooler design I think it makes more sense we move the kids farther from the door we move the computers right up front we have a great place for older people to sit but no we're not going to have more building unfortunately all right the collection is has to stay at 15,000 until we get a new building okay but we are having since I'm talking a big grand reopening party September 27th from 4 to six you were all invited as the guests great cookies and Kool-Aid exactly we're there just we know how on the outside so you don't spill it on the new carpet right it's going to be in the meeting room okay have we heard anything else about that on the meeting room the they going to still they want to still pursue that I have not heard anything all right everybody happy September 27th that's six you said time four to six a Friday night it's early you can go out dancing after are you a dancer I was wondering a new side of you yes don't need to throw anything else anybody anybody happy watch gun motion Council M second person any further discussion all those in favor I I oppos motion carries this meeting jour