City Council - Regular Meeting

Good evening. The workshop council meeting for the City of Coppers Cove held June 16th, 2026 is called to order at 5 p.m. Madam Secretary, please call the roll.

Mayor Yancey.

Here.

Christina Strophos. Here. Rita Hogan. Here. Howard Hawk.

Here.

John Hale.

Here.

Dale Chudway.

Here.

Vanya Hart. Here. Jack Smith.

Here. Okay. All present, we go to item C, announcements.

None for me, Mr. Mayor. None for me, sir.

No, Mr. Mayor. Ryan? I've got several, yes, sir. So June 18th, this week at 4 p.m., we are holding a captain promotion ceremony for our fire department. Ironically, it'll be hosted at the Copper Scope Police Department community room. That evening from 5.30 to 7 p.m. at Allen House, which is 401 North Main Street, is the Business After Hours event on June 19th. That is a city holiday for Juneteenth and city offices will be closed. Saturday, June 20th from 8 a.m. to 12 p.m. the solid waste transfer station will have extended operating hours. June 29th at the Taylor Creek Elementary, which is on the west side of town off of Big Divide Road. June 29th from 5.30 to 7 p.m., TxDOT is holding a public meeting on the Interstate 14 route study. And then lastly, July 23rd at 8 a.m. at the Copper's Cove Civic Center is the Governor's Small Business Summit. There is a registration link on the city's Facebook page.

Okay. Thank you, Ryan. I have nothing, sir. Thank you. Dale?

Nothing, sir.

I have nothing. Thank you.

Jack? No announcements. All right. There is no public recognition for tonight, so we move to item E, workshop items.

Presentation, discussion, and possible direction on the city manager's proposed FY2026-2027 budget and plan of municipal services. Ryan Haverlaw, city manager.

Thank you, Mrs. Wilson. Mayor and City Council, tonight we start a very strict schedule on our budget adoption, well, budget review, hearings, and adoption process. And before we get started into the actual presentation, I just wanna say thank you to you, Mayor and Council, for the direction, the many discussions that we've had over the past numerous months You giving us the guidance on how to prepare the proposed budget that is being presented to you tonight. Without your guidance, this is not possible. Also wanna say thank you to Mrs. Beckman and her budget team, Mr. Havi, for all of the work that they put into preparing consolidating, bringing together all of this information in a very easy format to read and review. They put a lot of time into it. So thank you all very, very much. And also thank you to our leadership and all of our city employees for their efforts in preparing this. So we have a budget committee. That budget committee is made up of Mrs. Beckman, Mrs. Key, who is our finance director, as well as our assistant city managers, Chief Wilson and Mr. Osborne. So thank you all for the effort and the attention to put this all together. So before we also get into the presentation, state law requires that we officially file the proposed budget with the city secretary. And in this moment is the official time that we are filing this with Mrs. Wilson. So we are in compliance with state law and it is officially filed. Okay, moving into our presentation, we do have an agenda, so we're gonna kinda walk through this agenda, and then we will get into the substance of our presentation, but we're gonna give an overview of where we're at with the presentation of the official proposed budget for fiscal year 26-27. We'll look at some of the challenges and the goals that we had in preparing this budget. And then we have some funds that we will look through. Those are the major operating funds. We'll take a look at the other funds, which are the non-major operating funds. We'll look at those briefly and then we'll specifically talk about the future dates. As I said, we're kind of on a very strict timeline in reviewing this budget. We build in a lot of time because if council has a lot of discussion, we have that time to schedule additional meetings. The city manager is required to prepare and submit a proposed budget to city council. It's built into state law, Local Government 102 provides all of those provisions. We have that public hearing that is required as well and so we will schedule that for July 30 and during the regular meeting on your consent agenda, you will take action to officially select that date for the public hearing. That way our residents and those who are interested in our budget know when that is going to occur well before it ever occurs. City Council must adopt a budget prior to or by September 30, 2026. And that is the last date prior to the beginning of the next fiscal year, which is October 1st. in order for that budget to be official and used as part of our budget and state law requirements. We are scheduled to adopt the budget on August 18th of 2026. So again, you can see that we've built in quite a bit of time in the event of unexpected discussions or changes that council may direct us to move into. Strategic alignment and planning. So city council officially adopted a strategic plan in 2020. This past year in the fall of 2025, we held another strategic alignment and I am working to finalize that and bring that to council for adoption. So you should see that in the next couple of months for adoption. As part of that, city council also provided some direction to revise the vision and the mission statement. and so that will be part of that action the city council looks at uh... in the future the The policy directions that city council provides are those policies that are built into the services we as a organization provide to our residents, to the businesses, to the visitors of our community. I've told you many times that while we are a local government organization, at the core of it we are a customer service organization. We provide services to our residents 24 hours a day. seven days a week and while i just made an announcement that on june 19th our offices are closed it doesn't mean our services stop because our services are 24 hours a day Just a reminder of what our current vision and our current mission statement are. They are looking at us as a premier community in the Fort Hood Central Texas area, a place to work, play, and call home. That is what everything that we work on, we do, the services we provide are focused towards achieving. That mission is to value the community partnerships, and we have many, many partnerships. I've talked with you over the last months and years over what those partnerships are, and every meeting that we have, uh includes some level of partnership that we have with other organizations promote family values foster healthy business environment you just had a meeting a couple of weeks ago about that business environment and you provided some direction on that as well enhance quality of life and advocate for our citizens and our military and again as i said You directed that we have a revised vision and mission statement. We will bring that to council for adoption. So this is our proposed budget and these are all the funds. The total amount is, when we say this is what our budget is for this year, we look at that bottom line for expenditures. So it's a $76.8 million budget that we have included as the proposed budget for next fiscal year. We're gonna work through this chart, or this table. For the general fund, we start with a $12.5 million beginning fund balance, and that's available funds that we expect and anticipate on October 1 of 2026. We have expectations of $26.3 million in revenue and expenditures of just over $27 million, leaving an ending fund balance of $11.7 million. Just as a reminder, with all of the major funds, there is a fund balance requirement. It's called the ideal fund balance. As we look at each of these funds moving forward, we'll talk about what that ideal fund balance is for each of these funds also. The Water and Sewer Fund starts off with $10.4 million as a beginning fund balance, $24.5 million of revenues, $25.2 million in expenditures, leaving an ending fund balance of $9.7 million. solid waste, $3.8 million beginning fund balance, and 9.6 in revenues and 8.6, 9.2 in revenues, $8.6 million in expenditures, leaving an ending fund balance of $4.4 million. And then the golf course, and it's negative, but it's actually a highlight at a beginning fund balance of a negative $529,000. Revenues of 642, expenditures of 641,000, and then ending fund balance of still a negative $529,000. And I say that's a highlight because just several years ago, this was $1.2 million negative. And that is a tremendous change from that negative amount of over a million dollars. Other funds, beginning fund balance of 6.3 million, expenditures of 15.2 million, expenditure and revenues in close to the same amount, and then an ending fund balance of right at $6.3 million. So overall, a budget of $76.8 million. So let's talk about some of the challenges we had as we were building the proposed budget. And a lot of them are really focused on impacts to the general fund. But looking at the operating deficits, you can see expenditure growth is outpacing the reoccurring revenue growth. And we've talked about this for several weeks and months. as we've been building this budget. And for those who have been on the council for numerous years and for those that have been on for more than one year, we've had this discussion every time we talk about building the proposed budget and presenting it that as we as a city are growing, we are growing geographically and from a service perspective which causes those expenditures to increase. and we have been mostly a residential growth community. Residential properties, for the most part, do not pay the full cost of services. That's why we have had the discussion of focusing on commercial growth within our city. and we are seeing that impact. In addition to that, that next line is inflation and increasing operating costs are exactly what all of us as residents of the United States, citizens of the United States are experiencing. costs of services are increasing and that's through inflation and that's simply through the cost. Local governments are not immune from those same impacts that we as individuals and family units experience as well. Employee compensation and positions is another challenge. We have talked about the numerous years where we struggled with just recruiting team members to be part of our city services. And then right along with that is retaining our quality team members once we've recruited them and continuing to pour into them and help them grow professionally and personally. And that's why we have those two items on there, public safety market adjustments. City Council began a concentrated effort nine years ago of moving us into compensating our employees. closer to what the market is paying for those positions. And you have been very successful in helping us achieve that. Second is that cost of living adjustment for non-public safety departments. So we kind of break this up into a two-year cycle where we do public safety with market adjustments and then the non-public safety positions. The next year have market adjustments. Well, in between those years when market adjustments are not included for those employee sets, we are looking at some type of an adjustment. So for public safety, they have a grade and step program where they are automatically receiving in their off year an increase built in to that off year for them. For the non-public safety positions, we don't have that grade and step program. So based on the economic environment we've seen over the past year, I made the recommendation and city council approved it and agreed to including a 3% cost of living adjustment for those non-public safety positions. Tax rate trends, slowing growth in taxable values compared to prior years. So I know we talked about this a couple of weeks ago, but I want to reiterate what that discussion was, and that is based on the estimated values we've seen in property taxes, we are seeing those residential properties starting to slow in appreciation At worse, they're flat or declining in appreciation for existing properties that were on the tax roll from last year. And as we get into the discussions next week where we start looking at this in more detail, we'll be able to have that discussion with council in greater detail on what those numbers actually look like. Sales tax growth is stabilizing, and so we've included right at 3% increase in sales tax. when COVID hit, which was around 2020, we saw some pretty significant increases in sales tax receipts. And why was that? Because As a worldwide effort, people were told to stay at home. And so people were staying at home, people were staying closer to home, and we saw a lot of sales tax growth as a result of that. Now we've actually sustained that growth, and so we're not declining, but we have come back down to a more stabilized growth in the sales tax that we saw prior to 2020. And then with the water and sewer solid waste and drainage funds, we are continuing that infrastructure investment and regulatory requirements for operations and the infrastructure itself. We had many, many years of deferred maintenance and deferring the growth of our infrastructure in those areas. And so last year, we held seven town hall meetings And then city council eventually adopted a street maintenance utility as a part of the roadway system. Well, with the water and sewer, solid waste and drainage systems, utilities, we still have infrastructure that we need to invest in and you continue to support that through our capital improvement plan. which has an impact on utility rates, which is the very next item there. Rate adjustments to address deferred maintenance and maintenance service levels. As we continue to grow as a community, both geographically expanding and both in population increasing, services have a greater requirement for that growing population in that expansion of geographic service areas. These are our major operating funds, right at $61.5 million. You can see 44% is the general fund, 41% is the water and sewer fund, and then the 14 and 1% are the solid waste fund and golf course fund. If we included all funds, it would be $76 million, but we do not have that up here on this chart. So moving into specifically the general fund, looking at these summaries, you can see where we're at for the projected fiscal year, where we have revenues at $25.5 million, expenditures at $27.2 million. And just as a reminder, at the beginning of the fiscal year, city council is presented with a budget amendment. and that is to reestablish the unexpended budget for projects and priorities that city council has set for all of our funds. And that's why we see that increase in the expenditure number of $27.2 million. overall with that ending fund balance of $12.5 million, but looking at the ideal fund balance and then are we meeting that or are we over that or are we under it? You can see for both the current year and the projected year in next fiscal year, we are exceeding that ideal fund balance significantly in this fund. and then looking at the balancing options that we had previously discussed with City Council. We talked about a tax rate adjustment, utilizing fund balance, excluding market and COLA pay adjustments, and then deferring some of the 2026 CO issuances. City Council has provided direction on all of those items we've built Council's direction into the proposed budget, which is to look at the possibility of the voter approval tax rate in the proposed budget, utilizing fund balance for a portion of the general fund balancing efforts, excluding market and COLA pay adjustments. City Council did not support excluding those, and so they are built into the proposed budget. in deferring the 2026 Certificates of Obligation issuance, we will actually have a discussion during our regular meeting for council to give us final direction on that effort. Looking at the revenues, and these are into our larger categories within the general fund, taxes have increased 3% from $17.8 million to $18.4 million. Permits and license increasing 11% and a large portion of that is related to continued construction within the city but also The Veterans Affairs Clinic that Copper Scope was selected for earlier this year, those permit costs are included in next year's budget. And then charges for services, right at flat, 0% increase. Fines with a 1% increase. Administrative reimbursement with a 14% increase and that administrative reimbursement comes from other funds and it is directly related to the services provided to those funds based on what could be officially called an indirect cost formulation and it's based on the services provided to the water and sewer fund, the drainage fund, the street maintenance fund, the solid waste funds. And then miscellaneous revenue or any of those revenues that don't fit into those categories, it's actually a decrease of 9%. And a lot of that is probably related to insurance claims because we don't budget for insurance claims. They just come in whenever they happen. So in addition to that, we have a decrease in what we expect from the 100% disabled veterans administration, excuse me, exemption reimbursement. And we'll touch on that here in a moment. But overall, it's a 3% increase in revenues. You can see 70% of the revenues are taxes with 10% administrative reimbursement. This is just a estimate of where the tax rate could go from two years ago to this year to next year. You can see it's overall a slight increase in all of those, both the maintenance and operations as well as the interest and sinking amount. That interest and sinking amount specifically is driven by the capital projects that city council includes in our capital outlay plan and then eventually in the certificate of obligation issuance or bond election, whichever may have occurred in that year. This is the changes in property tax and sales tax revenue. You can see there's a slight increase in the property tax revenue as well as the sales tax revenue based on the discussions that we just talked about. Overall for property tax, it's a 3.5% increase. We do see continued development. But like we talked about, there is slower tax value growth, or it's at best flat or decreasing, or at worst, excuse me, flat or decreasing. And then we do have that increased debt service obligations. So the total tax rate that is calculated right now, and again, these are estimates, estimated at just over 71 cents. And right below that is a little graph that shows the 100% disabled veterans exemption. And it is increasing year after year. And so we are approaching $4 million in lost revenue in the general fund as a result of that exemption. And you can see the red bar is the amount of reimbursement that we as a city receive from the state for the exemption or the lost revenue. Sales tax does have that 3% increase. And as I said, it does have a kind of a stabilizing impact from growth prior to 2020. Economic development incentives are included in the expenditures. And so that's important because as you know that you just approved a new 380 agreement for that Veterans Affair Clinic, that we won't see the impact of that until likely next year or the year after when we make our first payment, but we built the expense of those 380 agreements into the proposed budget as well. And then permits and inspections, and I apologize, it's a little difficult to read on the screen there. We do have that 11% increase there. Residential construction, again, is mostly stabilizing to what we've seen prior to the rapid growth and expansion of residential properties. But commercial permit activities are reflected in the proposed budget specifically for that Veterans Affairs facility. And I have shared with council previously that there is an increase interest in commercial development throughout the city. So we'll continue to see that as well. Very positive. Very specifically, looking at that 100% disabled veterans exemption, this kind of blow up of that chart on the previous slide, and as I said, we're approaching $4 million in exempted revenue in the general fund, and we expect a payment of around $339,000. The other revenues that are out there, charges for services, again, very stable, flat as far as revenues overall. Fines and forfeitures, a 1% increase there. And then administrative reimbursement, a 14% increase. And again, that is related to kind of that indirect cost of services. And very specifically, those are the administrative services provided by the general fund. what are those administrative services that's finance and budget and human resources, information technology, city manager's office, even city council's cost is allocated to other funds because part of what you do is directly related to those other funds. Expenditures within the general fund, again, are broken down into larger categories. We have public safety going from 14.8 million to 15.1 million. That's just a 2% change. City administration going from 4.8 to 5.2 million, an 8% change. And again, the details of all of these categories we will discuss next week when we break this down by department. So we'll be able to get into why all of these budgets are changing. Public Works, a 4% increase to 846,000. Development Services from 1.2 to almost 1.5 million. That's an 18% increase. We'll look at some of those categories of what's driving that. Parks and Recreation, a 21% decrease from 3.9 million to $3.1 million. Again, we'll look at what's driving that decrease, but just remember there are some capital projects that were built into the existing budget that are not included in next year's budget. And then non-departmental are those that do not apply to any specific department but benefit all departments, 17% decrease. Overall, it's roughly a flat budget with roughly $100,000 decrease from the current year's budget. 56% of the expenditures in the budget are related to public safety, with 19% being city administration. Public safety is made up by police, fire, and mostly police and fire. There are some other smaller departments included in there. 77% of the budget expenditures are salaries and benefits. And this really highlights the fact that if city council recognizes, understands that we need to control or reduce cost in any budget, it is going to be positions which relate to services directly. And so we've had this discussion, we've talked about this the last couple of weeks, and so council's provided direction. I believe you have a really good understanding of what that means and some of the direction that council may have to provide in the future. So overall, we've talked about those market adjustments for public safety, $502,000 for police, $477,000 for the fire department. A 3% COLA equates to right at $200,000 for those non-public safety positions. And total new request of $117,000. That $117,000 is directly related to one-time cost. We did not... recommend funding any new requests that had a reoccurring cost within it, with the exception of these bottom ones that we see. But looking at the new positions, we've talked about the assistant city manager at $276,000. Of that amount, the general fund is being reimbursed for right around $250,000. from the other funds because that ACM will be directly leading the services and the team members in the other funds. Development services manager of $119,000 and this is directly related to commercial, growth and development that not only are we seeing right now, but that we are now positively anticipating with the selection of Copper Scope for that Veteran Affairs Clinic that will drive additional commercial investment in our city. Building and Development has a third party plan review and inspections budget built in. We are currently anticipating that this is only a one time, one year cost. This is to help support and supplement our existing services for that Veterans Affair Clinic and all existing development that's continuing in our city to make sure that we are providing a high level of service to all builders and developers and homeowners and businesses in town. And then the information technology item of a backup solution of $95,000, we've included that in there. We talked about that previously. That is something that is needed as we are becoming more and more dependent on technology and securing that data is a very high priority. Looking at the overall ending fund balance within the general fund, you can see that it is overall a declining balance, but we are greatly exceeding the ideal fund balance overall within the general fund.

Excuse me, Mr. Mayor? I have a question, Ryan. Yes. Okay, well, actually, just a comment. If we go back to slide 14, I've been looking at this slide and I know that you verbalized that it was an estimated calculated tax rate of 0.71. How do you feel about putting maybe an estimated, like the wording estimated there? Because it just looks like everything that's in Each graph is like continue new development. Yes, we know that's occurring. Calculated tax rate, we know that's occurring. Do you understand what I mean?

Yes, ma'am.

Yeah, I'm thinking maybe if we put estimated there, it just provides more clarity that it is an estimate.

Well, when we do our presentations next week, we'll make sure to adjust that. Okay.

Thank you.

Yes, ma'am. Moving into the Water and Sewer Fund, and the remainder of these funds will probably go much quicker than the last half hour we've had. But really looking at the Water and Sewer Fund, it has a beginning fund balance of that $10.4 million. And you can see the difference between the revenues from the current year to the projected year and next year, proposed year, going from 22.4 million to 24.4 million. Expenditures increasing from 23.2 million to 25.2 million. with an ending fund balance of $9.7 million. Ideal fund balance is still well below that, which means we are exceeding it by $3.5 million. And just as a reminder, which is what we'll get to on a slide here in a moment, is that we have a utility rate study that we've built to smooth into the rates necessary to run the water and sewer system, and it builds in the deficit that you're seeing in this fund. The revenues overall, 14% increase in water revenues, 4% increase in those sewer revenues, and then the other revenues are listed there, but overall, it's an increase of 9%. 59% being water revenues and 33% being sewer. Significant changes in the revenue include those rate changes and you can see in the chart tables below what those proposed rate changes are. This is and was already built into that utility rate study that was previously presented to city council as posted on the city's website and we will go through this in greater detail when we look at all of the fees in a future workshop with city council. Expenditures, we have numerous departments within the Water and Sewer Fund. It's not broken down into categories because it's all water and sewer. And so our first one is Public Works Admin, which includes all of our administration team there. It also includes our construction inspectors as well. 5% decrease in that budget. Utility Administration, CNA 400 and... Huh. Is that accurate? Thank you. Just caught me off guard for a moment. 426% increase going from 1.5 million to $8 million. We will look at that here in just a moment. And then water distribution having an increase of 9%. in that fund, 12% decrease in wastewater collection. And then all of those other wastewater departments, those plants as well as the lab, have varying increases or decreases. Overall, it's a 9% increase in the total water and sewer budget. 30% is debt service and this is unique from when we looked at the general fund. General fund didn't include debt service and that's because for tax supported, a separate fund exists just for the debt service component of tax supported projects. 25% is water purchases and then we see all of those other departments in declining percentages for the overall budget. 30% still being that debt service, we had the same chart, water purchases being at 25%, but 20% being salaries and benefits. So when we look at the Water and Sewer Fund and City Council wants to make significant changes, again, the debt service is set based on whatever projects we move forward with and we issue debt for. Water purchases is based on customer demand And then we get down to 20% being the team members that are operating the systems that are providing those 24-hour services to our community. So looking at these significant expenditure changes, cost of living increases of $121,000, which is that 3% COLA. New requests are listed there, specifically just those one-time costs, really, for each of those areas. And then we've got new positions. Three new positions are included in this. 63, almost $66,000 for an operator one position in water distribution, administrative assistant, and then a senior backflow prevention technician. So as I said, as we grow from a geographical perspective, as well as a population perspective, which is drives services, those positions are needed to provide the basic services to our customers. Overall, water cost right now has a 0% increase in the rate. That doesn't mean that our debt service for water cost isn't changing. It changes every year, but the cost per thousand gallons of water we buy is not changing from this year to next year. And let me back up real quick, just as a side note. City Council previously agreed to a significant capital project to expand our treated water capacity with our water supplier, which is Bell County WCID number one. That project has just started, which is it took off a water production plant and We are going to be watching very closely with our water supplier, the amount of water, not only that we are using, but that we need in the future, because we have taken a significant portion of the plant down in order to expand it for growth in the future. Okay, ending fund balance, as I previously shared, this is kind of an expected or built-in plan with that utility rate study where we see that declining ending fund balance, but still significantly above the ideal fund balance. And then moving into solid waste. And before I do that, I'm actually gonna look over here at Mrs. Beckman. Can you remind me what that significant increase is? Thank you, yes. So just to go back real quick, that significant change we see in water purchases, we moved, those water purchases were non-departmental previously, and we moved it to utility administration. Thank you, Mrs. Beckman. Okay, solid waste, again, so this is the same story. I'm just gonna kinda look at the bottom line numbers on the rest of these funds. But solid waste is showing overall a higher amount of revenues than expenditures, which increases our ideal fund balance, our ending fund balance above that ideal fund balance by almost $400,000. Revenues overall have a six, 7% increase with 9% of that occurring within the residential collection and commercial collection being 7%. You can see that 59% is residential collection of all revenues received in the solid waste fund, 22% being commercial, and then 13% being sanitary landfill fees. And we had quite an invigorating discussion about the fees charged for the landfill, which we will be able to discuss with city council in detail next week. Looking at those proposed rate changes, you can see what they are on the table below at the bottom of this screen. They are increasing, again, built in by that utility rate study that we have discussed with council now for numerous years. Expenditures overall have a 10% decrease and you can see a significant portion of that is in that solid waste disposal budget and that is related to capital projects and purchases to where it's not included in next year's budget and we will be issuing debt for that project. 29, excuse me, 25% is the disposal and hauling cost. So quick explanation, we collect the trash or garbage, we take it to the transfer station, which is the facility we own, we dump it on the floor, we load it into a tractor trailer, And then we pay a company to haul it from our transfer station to the landfill, which is over on the other side of Temple. And then we pay to dispose of it in that landfill. So the city does not own our own landfill. We own a transfer station, and then we pay to dispose of it at a landfill. So 25% is that cost, 16% being debt service. And again, this fund includes the debt service for any projects that we've done or equipment that we've issued debt for. Residential expenditures are 13%, so that's the residential collection. Administrative reimbursement at 14%. And then commercial and all the other departments in the solid waste fund follow after that. 30% is salary and benefits within this fund. And so again, after the disposal and hauling costs and debt service, 30% is a pretty significant amount of services provided to our customers. Expenditure changes here really are just the cost of living adjustment for all employees. Hauling cost is increasing. It increased 15% in the current year from last year. It's increasing 4% in next year. We did receive a letter that there is going to be a surcharge for fuel. Based on fuel prices and the contract we have, we will be paying that surcharge, which we were already paying based on whatever the current rate was, but it will have an increase as a result of the current fuel prices. Ending fund balance within the solid waste fund, you see that there's a dip from last year to the current year, and then we're increasing there again, all built into our utility rate study we've previously discussed with city council. Golf course, again, moving into a positive, more positive position from where we were a few years ago. But overall, you can see that those revenues in particular are increasing a significant increasing from year to year. Those revenues are primarily made up of those green fees and cart rental fees. And then we have a number of other categories listed there, overall an 11% increase. And 29% are those green fees. 26% is other income. And so that other income is probably related to some of the tournaments and other things. But again, we'll get into those specific details next week when we go into the golf course in detail. Expenditures, overall a 16% increase in those expenditures. 67% is operations. So what is operations? That is the front counter, our golf professional that's out there, and the cart rentals. That's a significant cost is just renting those carts. 31% being the maintenance of the golf course. 36% is salary and benefits, and then contractual services is 23%. Again, that's related to those cart rentals. Cost of living adjustment for all employees in that fund. and then the ending fund balance and I appreciate Mrs. Beckman putting kind of a long range perspective on where our fund balance has come from to where we're at over $1.3 million deficit in that fund on annual deficit in that fund to now we just have a $529,000 deficit. So made significant progress, well done to Mr. Stoddard and his team. And then these are all the other funds. The larger funds we have listed there within other funds. Interest, tax interest and sinking fund. And you can see revenues and expenditures. It's about a $600,000 deficit and we talked about that in our previous meeting. City Council gave direction to utilize some of that fund balance. That can only be used to pay back the debt for those tax supported projects. The drainage fund, you see an increase in that fund balance which will all go towards, likely towards capital projects and capital purchases in the future. Street maintenance, really excited about the successes of that fund beginning this year to where you can see we have a beginning fund balance of $1.2 million, revenues of 3.4, expenditures of 3.4, And about roughly half of that amount is all going to street maintenance projects, which include those mill overlays and those more significant projects that the community wants to see with improvements to the roads. So thank you, council, for moving forward with the funding solution for that. Hotel occupancy tax fund is included there, and we will have a specific discussion of the requested use of those funds at the end of July, so be ready and prepared for that. The PEG fee funds, that is the PEG, stands for Public Education Government, which is related to the city's television channel. And it is television channel. It's not online channel. It's not Facebook. It's none of those things. It's related to the television channel. And the improvements that we can pay for with the equipment so that that programming that is posted on there through the equipment, capital purchases, can continue to be provided to our residents. Employee Benefits Trust Fund, that is a really significant fund because that is where all of our health-related expenditures flow through from each fund. And as a reminder, Council, you agreed and we proceeded with self-funded insurance this current year. It has been a success and I'm excited to share some of those success stories as we get into the details of the budget. court efficiency fund and the court security and tech fund those are those smaller funds but then we have miscellaneous funds and there are numerous funds that make up the miscellaneous funds the the ones that have the largest amount are those grant funds within miscellaneous and so we'll look at those in a little bit of detail as we go through the details of the budget next week Okay, drainage fund changes. It's just the 3% cost of living adjustment. Street maintenance, we have the same thing, cost of living adjustment. We have added a new position within that fund to help with the maintenance of our road system. I've specifically highlighted that next item there, which is sales tax authorization. Currently, that revenue is going into this fund. It is paying for the maintenance of our streets It expires next year in March. What that means is that the reauthorization for that sales tax must be on the November ballot. So that will go on the November ballot. City Council will approve an ordinance posting that or including that on the ballot for the November election. And then sales tax history, just some history of the different eighths of a cent that have now been combined to a quarter cent that goes directly to street maintenance. Hotel occupancy fund, we've received total requests of $195,000, which is part of the discussions we'll have at the end of July. PEG fees, we've already talked about that. Municipal court funds, just as a reminder, half of the salary and benefits of the part-time bailiff position come out of the general fund, and the rest of it comes out of these funds. As we grow as a city, one of the things that we need to consider is making that part-time bailiff position either full-time or adding a second part-time bailiff position because the number of cases that go through municipal court are increasing. And then there's an entire list of all of the other miscellaneous funds we won't talk about tonight, but next week. So upcoming dates next week on June 23rd and 25th, we have workshops. Be prepared. These will be a lengthy discussion. Mrs. Beckman will take the lead on presenting this to council. She's very efficient. So just like Ms. Hart did while I've been giving this presentation, if you need to ask questions, you need to break into the presentation and then ask your question next week. On June 25th we'll have a discussion on the fee schedule, and non-city organizations. July 30 is the discussion on tax rate, as well as public hearing on the proposed budget. And then August 4th, we will be taking a record vote. And when I say we, that's the city council. A record vote means, in other terms, a proposed rate. So even though we have a proposed budget with an estimated tax rate included, city council must propose a rate before adopting a property tax rate. And so when we get to that, we'll provide much greater detail of what all of that means. We'll have a public hearing on that tax increase on that, or setting the date for that public hearing on that date, and then discuss changes to the proposed budget then. August 18th is the date that we plan to adopt the budget, the tax rate, all of our long range plans, the fee schedule. So there's a lot of action items on that date. By that time, we should be well prepared as an organization and you should be well prepared to move forward with the adoption of the budget because we have numerous meetings to discuss all of the numbers as well as the services. Mayor and Council, do you all have any questions, any direction for me?

Council, any questions? Anybody? OK. OK.

Thank you very much.

Thank you, Ryan. The time is 5.53. We will adjourn the workshop meeting. We will begin the regular meeting at 6.05.