##VIDEO ID:Mxf40uKYDCI## will you turn off the AC yeah good all right it's um special city council meeting pled Workshop it's Wednesday September the 11th at 5 o'clock roll call please may R here councilor Phillips here councilor Richards here councelor pigr here councelor D lck here all right we're gonna kick this off right you know what whatever um so again we've got just three simple sheets here this the front section the back section is those Revenue well this is yeah the revenues and all the breakdowns um again just as before every other day the middle section is some of the inserts if you will for the sections and uh we'll go through them most of them are going to be for the very last one so we can save those kind toward the end we've just got three to go over today so we'll pull up on the first one here real quick Planning and Zoning um simple Revenue they budgeted before 12,000 year to date we have nothing um put nothing in well now part of that Planning and Zoning of B is is this for um the salaries or what is it because the salaries are going to be coming the salar is already accounted for in the expenditure so you got that one okay is does this have this is something that this would be a this is all we're on revenues now so sorry we're in revenues this is bringing in today is our revenues we finished all the expenditures okay we're in revenues I don't know why it was budgeted for 12,000 in revenues from Planning and Zoning what that means it was the permits and stuff well yeah that that could be because that should go to it should landing and Zoning yeah we've got a separate business license and Perman section up here so again I don't know what you all had figured for last year but there was nothing there and there I don't know so I mean if there's something we need to correct and fix and look at and you want something there we can put it there but no I was just I was think the other I was because you know it's one of those things we don't have a a budget for Planning and Zoning so I don't know why the money would go to Planning and Zoning you know as far as them doing extra above because it all comes out of the city budget so those permit fees and stuff go back into ours to help offset cost of staff and stuff like that is my understanding so help me with that one so when you say we don't have a budget for planning and zone so with planning and Z went through the like there's right 2024 or like you know you look at let's I'm going to use Eda as a reference right so Eda you typically budget some money in your expenditures for them to do certain things I don't know that we have that for Planning and Zoning Planning and Zoning is just the commission that Rec sits through all this stuff and does all this now you know there's contracts like the the rewriting of code but that came out of the city budget that's not something where they're paying for it out of theirs whereas Eda has the opportunity to provide grants to small businesses things like that if if you were to put money into the Eda most of the Planning and Zoning stuff also it's all it's all passed through to the to the applicant for yeah but that doesn't happen at all on that're we're so far behind on that not even close so in 2023 we budgeted of this line item 36075 $1,283 and we actually received $933 14 so you're going back into the expenditure section of the budget is that what you're talking about yeah I'm looking at the expend 56 are you under what that is are you line6 this is okay you're talking about the reimbursements reimbursements that's 56 that's from I don't know why that wasn't in 223s but the date year to date we haven't had anything year to date and the other ones if you at 56 that's Financial Administration that's not even planning and zoning oh I'm sorry yeah right below it yeah it was said I'm sorry on line 60 it says building permits I I understand building permits yeah so where where does the the building permit money go to so if you look at the the last sheet you'll see up here one of the top ones we have is business license and permits but I would assume it would be supposed to be going into there now again Rene's not here she's sick today so trying to there like I said there's been so many things of trying to figure out where what when to where um I'm not exactly sure where it got put in because even in looking at this one which we'll look at there's only $100 which we've brought any way more than $100 for permitting this year um so unless there's oh wait there's a specific zoning permit one here yeah yeah sorry further down because we divided up the permits into zoning building animal they've got their own 32886 yeah so zoning permits has got $ 4,95 already then the building permits and this was this was $122,000 for reimbursements I don't know what reimbursements meant for Planning and Zoning that they would bring in for reimbursements other than having go back and look yeah if you look at the rest of it fored yeah 23 21 22 2019 there was nothing that was in there for the other years yeah do that answer Jason's question yeah so I don't know how we got how you guys got 12,000 last year but I'm bringing it back to zero because I don't know that we have any reimbursements coming in from Planning and Zoning to be a revenue for us I don't know what their reimbursements would be other building well did that have did that have to do with Sunny's wages no those was open their salaries good question yeah I'm not you've got that too right on number 61 does that have to do with anything that they do with the engineering and stuff no stuff that would have been under just planning and like said let keep to zero figure it out yeah I don't think that there's anything that should be in there so good well it's it's Revenue so you want the money in but it's I don't know like I said I don't know where that because again I look at this and go okay we expected 12,000 but we didn't get 12,000 so we're short on the other end now in our in the other side of our budget for this year because we actually don't have money coming in is pay it in the well and again that would go under expenditures not not Revenue then bring in something in so I don't know you know unless the only thing I can think of for this is if they had a grant that they're reimbursed the city for a grant but usually the city's still paying on grants it's not a reimbursement there no Grant okay so we're gonna leave that at zero okay move on to the next again Financial Administration um this one had the reimbursements from um there was stuff in 2023 that's marked on here but nothing for 2024 uh so I left that blank and then the American Rescue plan Act um again we've had 5,000 year to date uh budgeted for 3,000 um but I don't think we're getting anything this next year for that so that was L $30,000 has be used by end of December so are we are we out of it then or do we have still have so the thought is the 373 is to come back probably in the October meeting or November December but we'll put a resolution and bring it to the council to be used for public information which in our case we use it for signage being put on the side of the building Community Center I'm just looking it for next year we're not getting anything for next year so Z right so we're at zeros and zeros anything else on that one okay so this one the last page here um for our general Levy stuff um this is this is where our bread and butter comes in for our money okay so real quick before we dive into this I'm going to explain this little packet here in the middle that was in the middle of your packet um so this first page here this is the information from the state of Minnesota with the LGA funds that we get um if you go down to our name here you'll find oronoko and our money that we get 144,145 that that what's coming this year that is for 2025 okay as you see it certified 2025 LGA so that money is input it into this section in the general ly so when you see that in there that's what that money's from the next page is the uh small cities assistance forecast um again they kind of give the breakdown of how they do stuff and their aid and if you go to the second I did that so you can see the breakdown the second page of that has oronoko on there towards the bottom we get $5 52,2 54 of aid from that one again that's another line item in the general Levy uh or excuse me in the uh the revenue section here so that's there the next two pages um this has to do with the payment schedule for um for one of the on 2013 a yes it's the bond 306 CIP go bond from 2013 for the shop that's not paid for yet no that's not paid for yet and you'll see the amortization schedule on the second page of that the breakdown of our payments here and if you go down to 2025 you'll see that in 2025 there is a uh total payments here Plus interest and the 5,000 um were at here um budget year 2025 $3,032 did I put that one in right I put the wrong year in there should be two it should be 27466 plus 2016 is the total is going to be 31,400 something is what the total is going to be there we go sorry I was looking at the wrong line I was down one 31,42 is the total that's on there I'm talking with Mike we're rounding that up it's 202 sorry I didn't highlight these ones I I meant to highlight y got it okay I knew there was something in here that I forgot to highlight and so you will see that later on that's what that is so when that pops up so you got that information okay um and then there's three other ones that I'll explain after we go through the uh the general Levy revenues here these last three portions of that they're kind of like the end capap to explain everything so I don't want to explain that if we're changing stuff up here yet so any questions on those first sections so these are shot PS right yeah and you'll see we have it till I don't remember what year it ends up playing out there 20290 yeah so we got to for few more years all right so the last section here of this uh main budget the general 100 general fund budget is our revenues let's do our dance um so what I'll do is okay all right keep this [Music] straight keep it straight little look and just see the color so so at the top one you'll see the property taxes this is a calculation based off of all the numbers already entered into the spreadsheet I've updated all the numbers from our previous meetings as well as what's in here that's what gets us this top number for property taxes the 1.7 million pull tab tax um there's been nothing budgeted for 2024 there was something in 2023 but licensing is that what that is line 11 you said pull tab tax but didn't say that yeah line five is pull T tax my well I know that that they're what do they do with with the relief on that one Kan is that right what what's the question you guys are talking we're talking about pull tab tax which is on item number line5 so that's the 10% money yeah that goes to the city right are we taking that though the city is still taking 10% we are but we have to take it and donate it see this is where you're confused because we' got pull tab tax here but then if you go down towards under pop money a couple there's a pull tab donations completely l number on this paper that's the line number 33 P tab donations so there's and again I don't know how these got worded the way they are so this is my best guess please if there's something here that needs correcting and we bringing in money please let me know yeah I don't know what to expect from which is are 10% line 11's got P to licenses do we do we license the fire department to do that they're supposed to be so license we can start at the top guys we have a license is go the top P tab tax is the 10% money P tab donations goes into the 425 account so does the p tab tax yes it does it's not a 100 budget item okay so that's why there's nothing there then okay that's all I needed y so this is a 420 account with the other T okay well no okay we'll get to that one we get to that one then okay yeah okay so we know that goes in 425 so business license and permits um I think we can expect to increase around 100 we budgeted 3,000 last year only I think around 100 um but I think as we go there's going to be some readjustments as we come into the um doing the schedule the fee schedule this year uh and there's going to be some things where we're going to increase some of our licensing and permits and make sure that we're really enforcing those and and getting those um again it's not to ggum like I said I don't think we're going to get 3,000 I went with a safe reserve of a th um so that's that's where we're at there so this is just to be clear so the the licenses and permits that's all licens and permits that the city deals with so that does not include as you come down here you'll see zoning permits building permits an there's some separated out ones so this is for like the catch all for the rest of the permits coming in so like food permits and stuff well food permits has it oh okay so it's I again I I don't know how this was done in the past and obviously this has been around for a while it's been like this but so this is kind of the catch all for the rest of the permits as you go through here you'll see the the liquor license which would be a licens or permit as well um 4,000 I think with getting two sisters and and this is with tiles um and then any other liquor license events we do such as when gold rush they do their liquor license and some of the wineries and other places we'll see as we get some more Commercial Business I think that'll get close to that 4,000 last year we we had budgeted for this year right now you know 6,458 we only took in 2100 but what were we looking at last year was made up that difference you know what I'm I'm just wondering what what Sunny was thinking about off of that that's what I'm trying to just just curiosity I mean the year before that we took in actually we took in 5,8 80 okay in 23 we only budgeted for 1340 what so one thing about the liquor license is that I think this is a question for reene when he comes back but I think we're limited by the number of liquor license that we can give out based on our population so right now we have two we have Tilles and um gas and gold right gas and go but Tilles and and two sisters have on sale and Jeff Green I think has one and then G and go has an off sale so I think we're maybe only allowed one more liquor license new liquor license that we need to check with and then I get into I look at that I go okay well that does that include temporary liquor licenses for like gold rush and those events when they have $100 but but again in 23 we took in you know 5880 awesome no I'm just where it went from that to 2024 or 2100 maybe somebody's drunk I don't know I know since we've been here we really haven't had any we've had a couple come through that I can think of we had the winery the fire and um Li two Li and then yeah I mean two sisters is the business but there really hasn't been outside of that a whole lot more we had $100 for the Ducks yeah so that's not liquor what oh that gambling gambling they can only go up so far yeah B so if we're okay I'm going to leave that at 4,000 I think that's a a reachable number based off of that um food permits this one I'm we're looking at so we've got all the the businesses in town I don't know why I don't know what our numbers why we only have 300 in there right now food permits have Gold Rush well and a lot of that yeah we should be getting some and that take time to get that put in and and move over and I I say I know that's something that I talked with gold rush to make sure like they're doing it and collecting it because we should be collecting it as well and so but again keeping it that 25 I think that's right on par because that's about what was there in for that permit yeah permit are you talking for Gold Rush or for the gold rush for Gold Rush no it well they come to City Hall to meet with gold rush if they do or they put it in their packet that's its own separate thing but are we checking to make sure they all have a food from it yeah yeah they get get check they they do that's not us that's not our responsibility anymore but it's one of those things that the the the the health inspector will come around if they don't have it they're done like they shut down so they and I as a as a food vendor growing up in the food vending world they'll have their permit and they're comes from city hall right yeah so we should have an accounting yeah how many so yeah this does seem low what what is a food permit what is it $100 and that may just be I don't know where Gold Rush is at and where that transaction is between Gold Rush and us at this point because they're the ones who collect everything and get them all done and then reimburse us is my understanding so um you know it's one of those ones we just how permits how many food permits they allow drland anywhere from 17 to 22 no but I mean does does isn't it capped anymore it used to be restricted how many they had how many Gold Rush could have share the re we were tr5 this year but I I haven't heard of the C but we used it used to be we kept it we kept it at a certain number so one food vendor wasn't getting starved out other in 18 this year we had 16 or 17 but three or four of them dropped out because couldn't find help or had another something they want to go to that's all on the event to do that so all right so we're good with 2500 Gathering perits um 1100 we're kind of around that nine something right now um and I think that's pretty on par you know we're right around that 1100 a year so a little bit higher lower uh halling permits that's usually strictly to do with gold rush we don't get many of those we usually get about 25 bucks worth I think they're what five bucks a piece or something like that so we don't get a lot but it's still a little bit P tab license between that of 425 that's what you just said no no B tab license would be a general fund Revenue two SS want to have pull tabs or something like that no license if if uh let's just say the Lions Club wanted to have a pull tab license right to be at it two sisters or something I believe that's where you would charge them for a pole tab license you charge that that group that's doing the gambling yeah yeah the Lions because because the fire entity right right but you know like I don't know how you guys landed on the the duck race it K yeah he paid the 100 and I didn't think because it's it's what I think he should almost have that 100 back but so that that would go to there because that was a temporary Gambling License off-site license right so that would be a a general fund Reven and you're saying the fire departments is in a different account no I don't think the fire department pay license I'm pretty sure they're supposed to though well they do it with the state that's what they do I don't think I don't think the city's ever charged for a pole tab license for the relief Association Kent does everything with the state keeps Everything clean but the city sure could is what it's what it's looking like like the P tab I think they got their license back in 15 or something like that it's not an annual per it's a one time okay Rel did not cover the duck race that's why you had to get a temporary gambling for the duck race yeah because it was when it wasn't on the the premise where the pull tab license was issued was the other thing it was a different premise so there was yeah two two zoning permits again um looking at staying on par with last this year we're about 4,000 um I think those will kind of continue as we go through um those you know those go for anything in town to um you know any new builds things like that there's a lot of stuff those can go for so I think if we see some growth next year that could probably be end up being higher in the long run but it'll at least get covered safe there yeah same with h building permits I don't think we're necessarily as high as we were expecting um this year so far but we're still close for looks like 31,000 and some change almost 31 a half um and again I think that you know that's again possible to reach close to that 40,000 next year especially if we're seeing some incoming residential or commercial growth there believe at 40 yeah because actual in 2023 was 24591 yeah so we're up on that one for 2024 right there's a lot of Renovations going on everything you know requires a building permit you know there's a lot of stuff people prices are coming down a little bit so people are putting a little more into their houses and a lot of it because of sewer and water there's some of that too so um animal licenses anything um I don't know so we're just leaving that zero yeah we had said I thought we had said that we weren't doing that anymore yeah so um small City assistance we talked about that that's where that number comes from um State Grant income I'm not sure what this is exactly I haven't seen anything in the budget nothing's happened in 2023 either so so I just left that at zero um this is the state a so this is what we're talking about yesterday with the fire department so went back and talked and did some digging so talked with Mike Bonnie that 162 that's that 10% or that 2% retirement um that is that needs to be on here so that got put on to the fire department in that section that was blank where we were talking about the other day yesterday um as an expenditure and then it's also as a revenue here so they cancel each other out that's at 162 that goes in that's their 2% retirement fund stuff that goes to them so so okay so it's and you know that is one of those things I think that's based off of how many hours they actually work and all that type of thing correct for call or something population yeah there's there's factors that go into it so that's why you see in previous years like it's not quite there this year I get paid out usually at the end of the year but like the year before you'll see it's different if there's people not going or not working they're not getting that or they're leaving or I don't know none of that I thought it was uh oh boy I think it's just a flat rate per person per year is it but it's the amount of correct me if I'm wrong here I think it's 2% of the insurance Statewide it goes in oh maybe that's why there something like that down so it supplements the volunteer fire department's retirements so that 16,200 goes to the Fire Relief special fund okay uh so the next one that's the LGA the 144 again that's from the state there um maintenance agreements this is the the 24,000 is the estimated from the First Responders contract with Township that will be putting into place um for next year so there should be a $24,000 revenue for that that'll help offset some of their cost and expenditures in the First Responders it covers basically um when the contract comes through you'll see all that because that'll have to come to council before final approval we had budgeted on that one for 415 for this year that was a swag H that was a swag that was a good that was a swag with sunny an anticipation anticip right that was a guess and didn't go anywhere that's that's astronomically high too so yeah that's not be nice to get that but yeah that's not going to happen not anytime soon you know let let's play nice them and we all got to get our budgets right and I think 24,000 I sat down with Johan and Dan back when I first first started to work on this and that was the number they came to that's about what they expended over signed agreements with that or what no that's another story um so I tried to get it in before their the township contract they did all their stuff and it didn't happen there was some lack of communication from the fire department right now like 15,000 or something yeah that it's a third of what we've spent last year you know trying to help them you know helping them um so like I said I'm at the break even Point that's all I want to do I'm not here to gouge the township I'm just want to break even with it so so this is this so this is some of this is still anticipated to be negotiated yeah it's anticipated to be negotiated but I'm firm on that 24,000 because that's what we're spending I think it's fair that they pay it back I believe I'm not like other places where we're going to charge you a base price per call and it's going to be more than what you're we're spending like I'm just trying to break even um like I said play nice so um market value credit no idea what that is I've seen zeros there was 2023 look like expenditure but I left back in 2021 well that was disaster rate I'm sorry 2021 we had $116 yeah no idea disaster rate in 2021 we had 316,000 and that's been Fe or storm damage well these these market value this par Aid and disaster Aid and the market value credit Aid I'm leaving all these blank because we really haven't had anything and that's one of those ones where you know I'm I'm not expecting a disaster um so I'm not like I I can't put in a budget like oh we're gonna get money for a disaster the only thing we're going to get this year is you know we've submitted our mon FEA 144,000 and that came back from FEMA saying no yeah but that'll be our threshold but it's 88000 that'll be put on this year's budget not next year's no matter what it'll get whenever I don't think we'll get it by this by December for sure well it would still come back in onto this one though they have to put it back in on this budget because it was spent everything was spent on this this year so yeah so it would get put back onto this they'd have to do a journal entry adjustment unless we so unless we do some fixing of the river which we right but yeah so it's okay it's an in and- out it's yeah um assessment searches ,000 what what are we do how we what do we do an assessment searches for so where your request from real estate office or from Rochester title and say this we're gonna sell that house over there what's the assessments on against that house that'd be the water and the sewer that type thing yeah so we build the title company for that and that's been in all the way yeah 2019 the actual has been there so yeah you're looking at something it's been about um maintenance I don't suspect bringing in any money for maintenance um unless Kane you got a side gig to bring us in money I don't passport fees we don't do passport stuff anymore so I'm not worried about that um copies I always a little bit low and we see where we go every year is a hit or miss with copies I think 50 is an okay number it just depends on how many you know requests we get are people coming in wanting stuff it's just completely up in the air so I think 50 is a good number to have in there um finance charges kind of always budgeted we budgeted 100 120 because we had2 and 2023 um was that for the for the City credit card no it's a revenue bringing in so I don't know what they have for finance charges if they're run and we not we even have a credit card machine to run to take in an extra finance charge if somebody's paying the credit so I mean all the other years prior to that it was Zero well there was 2023 they brought in $112 yeah but other than that if you go back to the other stuff well nothing is in there for going back to 2019 was all zero okay but that might be something with finance charges you know with a new software we might have something where we could bring in charges you know for credit card use or things like that we Advanced software so that's kind of why I left it on there because that's usually a pretty small fee but since we've got reoccurring payments for people monthly payments something that would tally up over time late late fees going no like if you use your credit card this is like a 2.5% fee that gets added onto it some times you know there's there extra fees that get added on so it's one of those things where again 100 bucks I don't know it was one of those things just to put in there to if we bring it in is that like a feed we use for charging somebody bring credit card to pay their water bill well well we don't currently accept credit cards for water bill if if we did yeah that would be something where we could charge that back on it so um franchise fees 7500 that's kind of been in line with what's we've been bringing in uh more in line than what's been budgeted in the past that's a great question I'm not even sure okay was in there franchise well in in 2023 Revenue that would be we [Music] have, $5,800 $7,800 23 58 24 [Music] 10,000 23 in in 2021 it was [Music] 12394 2020 12,277 I can't answer that word Welles are be just wasting oxygen so what's that I said we could make something up it we' just be wasting oxygen yeah but I mean if if we if we've got this kind well we had $5,800 Comm be and well we kind of interesting to know up to dat franchise fees are levied on utilities passed directly to customers itemized on their City fee bills per the LMC so that's probably where the franchise fee stuff comes from is from the water utility bills so yeah been in here every year water sewer all that it comes from LMC LMC says that that is what to know about your utility franchise agreements and fees so I'm guessing that's where our fees or part of our Fe sewer bill and see see well you know 2020 was 1277 2019 you think they come up with different names know it's one of these things like this was made so many years ago and has been left and you know I don't there's some things I'm going to switch but yeah so again it was right in line with about what we've been doing obviously we're bringing in money under this I don't know exactly I'm pretty sure it's got to do with the utility stuff but um that's my guess so so park activity that must be the fees for you tball and like that and renting the parks and things like that so um pop money nothing not pop machine anymore donations left blank we haven't really $10,000 donation of 23 that was Bud that was that was for the fire truck or what whatever it was that not the truck what was it that got went through online auction donations oh yeah there were two yeah this, yeah that was a bu and that was a donation I'm just trying to budget there was nothing actual in the last two years okay so P tabs we know where that is at 425 refund rebate this where we're at right yeah we do get refunds and rebates occasionally on stuff ordering things online and whatnot so $100 we usually try to find deals on things to get rebates so donation from the fire department or to from the fire department I don't know how this there's donations on here dep dep so to clear that up if somebody wrote a check to the fire department or noal fire department right $50 that goes to this line item okay somebody writes a check to the Fire Relief Association that goes to the Fire Relief not the city guys understand that again those are hard to predict I leave it at zero if we get it it's a bonus if not I don't want to budget for something that we might not actually get M um fire calls again we're not charging for fire calls that's back up at the maintenance agreements with the contract so that's left blank uh room rentals that's specifically for here um and so far we've pretty much met that this year about 25,000 I don't expect we'll have too many more rentals coming into the remainder of the year so I think that's a good number to shoot for next year uh lot rental no idea that was been blank for the last few years um I do we have a lot that we rent no okay no well I think that might have been for the gardening plot or was it the park well they used to rent the park but that would that would that that would be your room rental thing yeah but that's been zero all the way along the part got rent at least once last year not this year all right phase one a reimbursement uh we're pretty much done with I don't think we're having any more Revenue coming in from that then reimbursements reimbursements um 500 we've been averaging about 500 a year the last couple years um come in a variety of things we get double charged for something it gets reimbursed get put in there overcharged uh some reimbursements um 23 we must anticipate a big one coming back yeah I don't understand that one um reimbursement for Grants this is for fire training so that's that in andout on their training there um so uh well agreement reimbursements again I we have any of that to deal with anymore um engineering C this is from cost agreements when we have um projects that come in and you know we're going to build a commercial thing we get a cost Services cost security agreement we're going to charge this so we can cover our cost and and do some of that stuff so that's where the cost service agreement comes in this year we've already got 24,300 I think 20 was kind of a reasonable with expected some you know potential for some commercial coming in in the next year so maybe there's you know talk of that so that was where we get that number isn't that kind of an in and out it's an in and out yeah because we just hold the check and from it and the balance we send to the contractor yeah um fines and penalties those are like your late fees on bills and things like that again been budgeting higher the last couple years but it's been lower I kind of split the difference and went down to 2,000 more realistic um any other miscellaneous revenues we get in this year we've gotten 15,000 of miscellaneous revenues uh budgeted for 8,000 I'm not exactly sure what our miscellaneous revenues are that were 15,000 coming in it seems um it's pretty good chunk consider yeah but I do know there's again there's some things where they come in and the coding is trying to figure out the coding and you know Renee is not an accountant but she's doing her best and it's well sometimes there'll be things where it'll get put into the miscellaneous Revenue because it's an incoming but don't know where exactly it would fall under or maybe it doesn't have something that fits under this budget cheap so it gets put under his miscellaneous Revenue big basket yeah um so again 5,000 was kind of because the year before we had $35 this year 15 so 5,000 was my interest my in there interest income I'm guessing this is based off of our accounts um they our bank accounts the interest income I don't know why there hasn't been anything put in in the last couple years um so I just left it at the 3500 I mean we had some good stuff in 2022 was 4,8 and so like I said it might have been one of those things with sunny and then the the end of Sunny not getting recorded properly right um why it's not in there so you know something adjusting later and then no Dam Revenue no Park revenue no firewood revenue from of the park and no camping Revenue um and then the transferring from other funds that's the 15,000 that's the transfering from water sewer for the support of payroll that's 7 and a half from water 7 and a half from sewer that supports payroll and that's how you get that 150,000 there okay and that gets us the total of the 2.2 million um if yeah so and if you're looking at these the revenue reports for this one you'll see up here too um on the property taxes year to date it only said 6,000 I called and talked with ber today there was the checks there we got paid it's for some reason didn't save in the system so this number that's on this sheet sheet that is the the year to date the one that's on the sheet is the correct year to date so Rene is going to look at that when she comes in and make sure that that gets entered in because we did get our check in July from the county which one um you're talk we're looking at the the revenues report NOP too far the third page in the state if you look at the the year to date it says like 6,000 we've gotten for property taxes clearly we've gotten more than 6,000 because we're in September now and so the number that is on here is the correct number she printed off the property taxes so if you were to look at it and go oh why does this say 6,000 but this one says $839,000 well that's because for some reason it did not get saved in our system because we have an old inqu outdated system and sometimes it doesn't like the player nice and function properly and so sorry 639 th000 is the correct number that's on this sheet for this yeah so so I got a question about the 150,000 um in the past we had 150,000 transferred out on the in from expenditures I went into the expenditures as opposed to the revenue because we're transferring that in from the CIP to help pay for Capital budgets and that that was on the day one we talked about that 150,000 right and I just I'm just saying to me that's that's meant to be in my opinion I think it's classified as an expenditure not a revenue because we're bringing that 15 in this is a different so we've got this 150 is to cover so you're looking at two different things so there's $150 expenditure that comes out from the money collected that we're bringing in from taxes that money is going into the CIP right that 150,000 that's for big projects later down the road whereas the money that's coming in from the water and sewer in a different fund is being brought into our revenues over here to help offset the cost of our salaries and the expenditures so you have the 600 water fund Water and Sewer funds that are their own separate entities basically their own budget right we collect money on them we bring them in that money gets brought into our general fund into our revenues and then we take that and drop it into our expenditures to offset the cost of the salaries for the employees now that 150 ,000 that's an expenditure for the CIP that comes from the taxes of the people and gets brought in and is put in as from the tax number is put in right into the CIP it's a different 150 they're two different two 15,000 that we transferred in like for for the previous 1 years was always on the expenditure side and because that's coming from the General reserves that's not coming from a tax levy that we spend it on the expenditure side well it's got to come from somewhere right but it doesn't come from the tax levy well it did last year it come from the tax levy every year we we added it to the tax L yeah because remember they wanted you want more we dropped it down last year for what it was so we were concerned about not having enough Revenue coming off the sewer plan so we we we in our 70 or 7 I think I think we I think we put it in at hundreds right it was it was 150 C back back to 100 if I recall right you're probably right I just need to think about that's two different I'm just looking because in our 2024 budget in the previous budget we've never had 1,000 you've never had a water sewer Project Help fun those cost of salaries we've just taken salaries straight from the tax Stu the water and sewer fund stands Al by itself yes we Capital fund that's why we're taking seven and a half percent from each to help offset the salaries of the employees which is what you typically do in a city you're that money is used this is coming from Mike bubani and this is then from my understanding he's been with this throughout the whole plan like this is what I'm not so that's this is the way he explained it to me and this is again you'll see that in every city usually they offset the the salaries is a minimal it's a minimal offset it's 7 and a half% from each help offset the salaries of the employees because otherwise you're charging extra money in on taxes on property taxes and stuff to pay these employees and then you're charging them water sewer to pay these employees or to to have the water sewer anyways whereas in instead of taking that extra money that instead of putting in their T from their taxes they're already paying into the water and sewer we're going to use some of that money to offset the cost of the employees who are working on these projects kind of what you're telling me is that we didn't do any of that this year not to my knowledge there was we didn't have any employees that were out there to start out well it's it's the it's the every employee every employee is is getting yeah well well we're paying for that too that's another that's another one I'll look at here in a second but you it's just it's coming in from it's coming into a different spot it was before it's still coming in yep so but instead of making the citizens pay more through their tax their Levy and their taxes on their whatnot this reduces that cost and we take some of our money from the water sewer which we're already charging the citizens for and we say we're going to use 15% of the money for that as payment to our employees to pay their salaries so so that's the end of that any questions comments concerns with that breakdown to that okay so back to the middle section of Staples these last three pages we'll kind of go over um this is the bottom sheet of if you will of the budget kind of gives a breakdown of where we're at um ignore the line out of here that's for the full budget right but if you'll see you can match the number on these Pages here these numbers will match this is the one you're looking for on this one y it's in the middle of that one the middle of the middle packet last middle packet doesn't exist anym this is the one you're looking for here yep okay so as you go through you can see Okay so we've got the total this says line 4 before that's our total budget which you'll see up at the top here that's matches that number um the non-property tax that's all of our revenues that are brought in here that we just went through um the 487 333 and then the general Levy which is the property tax here that you'll see uh the the 1.7 million um and then there's a difference category here um that difference I believe is the difference from 2024 which is the next one over um and then debt Services again we're paying less than debt services this year because we did actually pay off one of the other debt Services which we'll see in two pages um so we look at our total Levy and then the total difference there is an up of 47,9 se8 um from last year for the total Levy and then you see the tax rate of 51.9 which is a tax rate increase of 10.3% and 35.4% for the tax levy increase now to give that some perspective um I went on and talked with iani and we got the 2023 end of 2023 property tax information from across the state and so our tax rate for this year which we know pretty much every one of these cities has gone up from 2023 into 2024 and we'll be going up into 2025 but if I go ahead and I look at make sure I have the right number here oh boy did I mess that up um let's see here [Music] so um so Brian is at 67% for their tax rate we're again 51 um stewville is at 62 caston's at 59 West Concords at 103% Kenyon 73 zro or zro Falls I'll print this off and give this to you I just want to I just literally put this together five minutes before we started but one thing to consider there those are bigger cities and more established cities well and that's again but it's all the from there wanam mingo's at 75% mappa is at 49 zambro is at 49 Wanamingo 75 yep and this was 2023 they there's probably some fluctuation from 24 but the state doesn't have all their numbers 75% of their yes zombro Falls is at 62 uh Pine Islands at 81 what 81 pretty good yeah mappa is at 49.8 so there's some lower some higher I just took from around us the cities around us not including Rochester but I know Rochester's raised theirs 10% this year they've already released theirs so as it goes into the reason I do this is as it goes into people are obviously are biggest concerned when things go up the reason is you know people worry about their money rightfully so but as council members you need to know like okay yeah we're going up but here's why we're we're going up but we're still lower comparatively to the region and you need to be able to defend this because this is the budget that we need to pass in December think it be good to have that really because I that'll show everybody yeah and I I'll send this out here tomorrow and it's one of those things it's like I said and I mean there's there's a lot of the state puts out a ton of information also in the full table and the the breakdown of the reg the ones around our area but you can get every city in the state and see what they're at but I like I said I was pulling ones from around our area so yeah it's one of those things that you know I look at and I go okay well yeah there there's some higher there's some lower yep some cities are bigger some cities are smaller some cities are more established some are still growing we're we're still growing we've got some stuff you know every city is different but I'm looking at this going okay you know we're we're still low we're growing we know we're growing we're trying to bring escalate our city up to what some of these cities are to that level of you know consistency because if you go to Byron they've got their stuff together it's consistent it's their uh zro is the same way you know a lot of those cities they're they're there they're they've got their base we're still trying to find our base because we've fallen behind I think and we do have major project yeah and there's and there's a lot of work to be done which is great like you love to see work in the city love to see improvements but unfortunately that does cost so as long as you as council members can take that you're going to hear frustration I'm sure but to be able to go hey you know these are the projects we got going on this is this is why this is important and you know there there'll be some increases over the years but we're trying to get to that point where it becomes a plateau where we're not increasing we're just maintaining adequately and proportionately um the second page after that next page after that this is something Mike bani put together it kind of gives a breakdown um over say if you for uh the average person so if you look at this in 2022 at the left side here the property value of a house 250,000 you bought a house for 250 right it tells you okay your city property taxes were $939 this assumes a 5% an increase over each year uh of you know of value this is what your property taxes were based off of the the numbers below um so you look at between 2022 and 2023 there 5% increase that brought it up between 2023 and 2024 177% increase um that brought it up again you're looking at 31% increase for this year again from the prior year that's that's a lot I'll admit that's a lot but it's one of those things we've got a lot of a budget to deal with trying to bring in the wastewater treatment facility um and what's going on there and to maintain an adequate City for the residents that's part of growing pains with so your proposing raising city tax is 31% this year that's based off of these specific numbers that's just these specific numbers here okay well yeah so if you're still the tax rate the tax rate is only 10.3% PA what 10.3 points not this is this is this is the tax money changing from year one to year two based off of this home values assessment this is just example how can the tax rate be be 10.3% and your tax Lev at 35.4% because that's for the whole city this is a a specific example for say you as a homeowner with a house value at this amount this is what you would be paying there would be a 31% increase based off of the value of your home that's okay so um and again the top part of that shows the levy um the assum in tax increase capacity of the 8% each year you know you're looking at that's the on the bottom right here that shows how they got the 8% it's the average of all these years combined um and going up so again this was information for Mikey bunny I just wanted to put that out there for you guys to have and then the last page again um this is this is what is going to be in the packet I kind of wrote up um and this was assuming no numbers would change here this was what you'll see in your Council packet for the resolution for the preliminary so again you can see how it's written out here it's got the numbers the 209 which is the expenditures and the revenues and then you see the breakdown of the general fund Levy um and then you can see on here the two bonds one is the 35,000 the other one is paid off this last year so we left that on there just to show and it's zero and then the that's the total prary Levy with the debt services so that's the is this that we paid off on 308 is set the bridge lumro Hills Drive okay all right so that's that section real quick Water and Sewer um we're not diving too much into that I just wanted to with this was to give you guys because this isn't something you have to approve or go through but I wanted to kind of give you guys a snapshot update of what's going on there um so we will quick jump into that Kane and I went over this at length today to start the process and it's um it's a process so it's kind of the uh of this packet it's going to be in the middle to the back portions you'll see at the top it's highight with the 600 fund starting with the water all right well it's they kind of one of two one of two that's the the last four pages of that packet you look up and see where it's highlighted water fund you'll see the water fund and then you'll see p the pages they're just it's one two one2 one2 one2 because they're printed off in twos so the water fund the 600 fund you'll look at the revenue section year to date uh looks like about 169,000 year to date that it's brought in um and then if you go to the next page you'll see the expenditures for the water system about 260,000 403 so we have a net of 9,725 and for the water system for their fund for the sewer system again you look at the same thing revenues is 97,000 837 our expenditures are 23182 so we have a total net of negative 13238 so you know you're looking at the 132 and 20,000 the 90 couple hundred, $220,000 that's coming out of the city budget to help fund some of these costs um we knew from my understanding everybody knew it was it's going to take time to start funding itself like it's not a immediate hey we're funding because it's phases getting people set up this is only from April this isn't a true year-to-date test of how this is you know what our revenues are going to be what our expenditures are going to be it gives us a snapshot next year you're going to have the First full year of both operating you're going to really see what it's bringing in and where we're at and hopefully with a little bit of growth that can help offset it I know Kane just said we got that 17 other 17 houses going or will be going here soon so that'll add a few more houses um so this is just kind of information for you guys to see where this is at and what's going on um you know I look at this and I go you know most of it is it's reasonable there's some things that we talked about that we want to make sure we figure out where you know that everything is right because some of them do look low according to Kane with like the electric fees and stuff like that my biggest one that I will be excited to get rid of is the subcontracted services on sewer and water as soon as we can get out from under that that's $101,000 right now having them out there so far year to date so yeah so that's where we get certified one we get certified people we get train you know extra staff we can take that over at some point and reduce and hopefully get rid of some of those costs five years for the education unless unless you can hire unless so let's say brings a person in if you can hire someone with those kind of credentials they're not going to come cheap but part-time that they do for the a operator so that's what we want to do is get the a operator we can find one yeah yeah and those are very hard to come by so not to hire one but just to have one that will sign up on the paperwork people WR an a operator that price or what it I don't know that do peoples provide an a operator that what pay that they they offered us a a inclusive contract that is what we're involved with no but I'm saying so the answer is so whatever you said to provide we could have went we could have went one of two ways we could have found a a privateer operator right to come in and be that signing operator but you need to have City staff that can work underneath that Privateer right so that's kind of like the hybrid option the option that the city went with is a fullon contractor providing that service we didn't have staff with the credentials we have staff well we don't have staff period and again we just did it for three years instead of what they wanted for five so we've got the option to get out at three he signed a fiveyear contract I thought it was an early out op that yep so so yeah so it's it's one of those ones like I said it's in the uh the red right now it'll take time to continue but that's where we're also going to be looking at fees my goal is to as we come into November I want to have a fee schedule ready to present around November I don't want to mess around and have this go drag into the long distance I want it to be able to say here's the fee schedule January meeting it's ready to go like you're good so November December at the latest I guess but it's it's the feast schedule will be done ready to go so January meeting it's signed off and I'd really like to have the fees we talked about this signed off before if we can even in December so January 1 they are effective like that's when we're starting with our new fee stuff so we're not waiting for a council meeting mid January and playing that game um we can just get them rolling January one so so do we Okay so we don't have we don't have a published fee schedule we do do we what about does that include Water and Sewer hookups and rates yeah right now though the rate does not cover the cost of operating the facility right you know we're we're about what for for just the water the SE we're about what 36 short per P per residential unit or per unit or whatever monthly on their bill like they're they're paying half of what they realistically should be to help cover the cost of the facility and our expenses everybody's supposed to be hooked up by next May right then it should yeah but it's it's still even at the rate they're at I'm saying the rate they're at is half of what we need to cover operating expenses to cover expenses for it yeah so the problem is is the and it's it's well as we're not going to up the rate all the way 100% foror people think either it's one of those ones though you know probably be an incremental increase as we go here but we need to get that up to where it is so it can be self-sufficient because that should be its own self-sufficient thing so what are the hookup charges but $150 is it it for each for the inspection for theer it's just the permit yeah it's just it's just 150 for the permit or50 for the water meter but now you know actual water assessment charges are completely separate I mean that's where you take the the number uh yeah and we'll get into the Weeds on that Kane and I will more and we'll be able to present better information I don't want to present anything where get stuck in somebody said that was the number so but that is the end of our budget workshops we don't have anything else left to cover in the budget so I just want to make sure we're clear um because we talk about increased tax rates and percentage increases so just to give you a barometer of what we did last year last year we had 374 or 37.4 from 2023 and our preliminary budget was a year ago was 48.3 from 37.4 which is a 29% increase what we ended up with after between one October and the final is that we reduced that 4483 to a415 or 41.5 from a 48.3 and that reduced the percentage increase from 2023 from 37415 was 11% so we really sharpened our pencil we took some cost out some expenditures so this year we're at 41.6 which is on his sheet your sheet and and the new tax rate is 51.9 that's 10 points 10.3 points so 10.3 points divided by a24 rate of 41.6 is a 24.8 increase on tax rate so I think our challenge is to know we we've gone all over all the figures and Jason spent a lot of time on this but at the same time because people will look at that rate and they will talk about it and they know what we did last year and so we need to be prudent about reducing that and still trying to do everything we want to do or try and do at least or rationalize how we can reduce that percentage increase 24.8 to something less before that Mee before what before that before that before the final yeah we got down 20 this [Music] year got down and people didn't like that and that was quite a meaning so I'm just so why eye on where we're at what we our challenge ahead of us and still want to do all the things we want to do to move technology and salaries and everything so we're going to have to be very approv and look at those things I don't know what the answer is but I just know we need to spend some quality time looking at it I think at the same time we need the story to make sure we're all on the same page too why we're going with whatever we end up with there may be some hard decisions that we have to make you know how much money are you talking about to reduce it 24 down to less than 20 or around 20 or whatever have to play with the numbers I don't have that tax well just just the numbers of J ,000 increase so just the numbers of Jason put forth the tax Lev is going up 35% half million like we don't we can't I don't I'm not saying we should do any more what we've got right now in front of us I'm just saying we need to yeah continue to look at it that's got story wide thanks I'll just preface this by saying this is PR the city has has a you guys have a duty of the city to make sure that we can maintain proper um abilities to provide for the citizens and that does come at a cost and we hopefully have laid out the best information we can as to why we're we're not asking for exorbitant cost I don't believe I put together a budget that is above and beyond and unrealistic it on anything I think it's setting the the pace for as we come into the future this is a realistic of of what this is going to cost us and if we don't grow our budget we are going to fall behind drastically as a city and we are going to end up taking out loans and bonds to try and make up for these costs that are going to be coming down the road so it's one of those things is you look at that you go okay well yes we're paying a little bit more now but we are planning for the future as well and the growth and that comes with the cost Associated so and I think it's a balancing act too if you really think about it you know to try keep the the tax a little bit on the lower side but yet doing what you're talking about Jason you know because if if our taxes are low but we also have our our uh let's say function and features or amenities as a city um at a point where they should be it's going to draw people right but it's that Balancing Act you know and that's one of those things as as as we you know hopefully retain people and grow a little bit we're going to you know that will help in the future with slowing that increase in price to get to that leveling point of where we're at and where we need to be because you look at a lot of these cities and I've talked with a hand City administrators around the area as well you know they've they've kind of hit their point like I Ed Byron as example I was talking with Al the other day he goes yep we're at that like 60 something he goes we've been averaging 3 to 4% change he goes this year we're you know I think they're actually lower the year before they were lower like they've been able to keep keep it lower but they don't have new growth they don't have new businesses you know a lot of new business coming in they don't have new residential coming in they're stagnant so they you know their costs just go with the the the cost of living cost of yeah whereas us is we've got a lot of change we're trying to catch up we you know we got Inc increase staff we got to catch up on some of this other stuff to bring us up to this level that all these other places are already at and to help us function better as a city and to provide better services to the citizens and that's what all this stuff is is there we're there to provide the best Services we can to the citizens but that is also going to cost some and we're not again I don't think we're going above and beyond with an unrealistic budget and that's why we tried to lay it out so you guys can defend it if anybody has questions and I welcome have them called me I'll answer I've already talked to a few people and explained stuff I got no problem talking to people about the budget and you know there's people watching this I had a lady who was like oh where are these ones we got the other ones download today and I had a good 15 20 minute conversation with her about budget stuff like I got no problem let's all I'll get it going but that's good there's no doubt our staff is we're we're I want to say we're barely getting by because there's things that's not getting done um whether it's a city staff in the office or public works and I think you know we got a sewer system now we've never had a sewer system right charges and there's expenses there's more U clerk Duty utility clerk it's something we've never experienced that were growing so it's but the mindset to Residents it's been below since 2020 it's been below 40 or 41% and now we're making a jump we've been getting by that we need to look at what it's going to take to take us to the next level so I'm just I appreciate Jason taking the time to explain that if they people want to call in and talk but I think we we just I think an opportunity to look at cost that we should do that over the next several months change one one thing I'd like to point out Ry and I appreciate you sp the calculator to them numbers a little bit ago when when you were talking the different percentages and stuff did you take into consideration that the uh that the tax capacity jumped by about %. when you when you talk when you start talking different rates the when the tax capacity goes up that 10% change could be changed into 10 or 12 from what it was you know your number your excuse your numbers when when they change that one so I just want you to consider that us thank you cont preliminary thank you thanks everybody thanks for your than good job Jason oh 624