City Commission - Special Meeting

together. Today is Tuesday of April the 21st, 2026 at 1:00. We just have one item on our agenda and that is the our first full fiscal year 27 budget. So, city manager. Thank you, mayor, commissioners. We we um have gotten all your numbers and and we've averaged them. We'll show you what that looks like. And um we've incorporated the capital into so that we have what we would project as a total appropriation um as a draft. The um we are in our first draft, what we've considered presentation. This is a simple presentation. the numbers that will be on the screen, they're all in your your three sets of uh printed numbers that are in front of you. You have the community agency allocation sheet, which is the one with the colored columns. Um the what we're representing there is just y'all's average. We didn't show each one of your individual contributions or recommendations. So we took the the last year's allocation, the request, the average, and then we from the average we developed a recommendation on that. The capital uh list doesn't really change except for parks. Thank you. Where we've been able to look at and see what the county uh is is participating on. And then u the u full printed budget is your big spreadsheets. and and unless y'all want to go line by line, we we will focus on the summaries for each one of those. Um the next step, we we've got a little bit of a gap um after next week. So, we'll be back on the 28th to review the numbers that we have today. Um what we would like to do after that based on the

recommendations that that we we have today is is because we we will in essence have a 95% complete proposal to you uh appropriation proposal after next Tuesday. What we'd like to do is uh collect more information from our April end of April uh budget report um so that we get an updated projection on revenue after that and then we'll come back after after the the distractions in May and then we'll we'll come back and and wrap it up in that first week of June. Um so that's our mindset and that's that's kind of the direction we're headed in. Um this slide represents your your spreadsheets that you have in front of you in total. Um the revenue side for the general fund we're projecting at 24,594,970 this year. That number's not changed. um we've we've used the end of February data to project that and and the re recommendation that we had when we um sought outside financial advice is that to predict a flat year. So so we've through our conversations about expenses and and what what we are adding we've left the revenue alone. We've not touched it from that original projection based on the February numbers. So now then what what when I'm verbalizing that we would like to update this is the only thing we would update and really look at to see if these numbers are trending more positive or less positive from this projection and we'll use that the end of April numbers to make that that assessment. So we'll do that when we come back after the the the June meeting whatever date that was the June 2nd meeting. Um so that's the projected revenue for

the general fund that uh then on the right side of that screen is the FY27 operating expenses projected that is um and we'll go over here in a second what that what we added to that from the last time if you'll remember the last meeting that number uh the operating surplus was uh about 459,000. So we will talk about the expenses um that we've added to the operating budget that consumed that that surplus. So we are uh do think that we're at a point where our expenses are matching our revenue. So we we're at a point where the proposed appropriation on the operating side is is balanced. Additional appropriations include capital. They're at the bottom of that screen on the right hand side. Um so the total projected appropriations for the year uh FY27 would be 27,198,00055 that includes the general fund capital of $882,55 for operating what we consider operating capital and investment in into parks facilities of about $2,60,000. Those are those numbers are on your um um capital spreadsheets. The nuance on the parks is Josh um in addition to understanding better what the county is projecting, we had to speed up. So remember Josh got bold and and said the land and water grants we they're going to come in maybe even 24 months from now or 36 months from now. Literally after we said that, then the state u reached out to Josh and said there they all three of those will be bumped up in the fiscal year we're going into. And so we

expect to have um be have all three of those in a position to move forward with expenditures in the next fiscal year. And so because of that, that did increase your direct investment in parks. And so what that did was it added the Jackson Park splash pad in into a project for the fiscal year we're going into. Uh also the performance pavilion at at Millennium Park. It will it moved into the fiscal year we're going into. So both of those will be activities that we're engaged in this year for parks. So the U operating budget of $24,594,000 for the general fund is offset with revenue that is uh current and then the balance of about $2.8 million $2.9 million is out of the reserves.

I have a quick question. Okay. The uh 2168 trail extension, did that get bumped up or not? That one did not. Okay. It was highlighted blue so I got confused. So we do have grant we do have grant funding that's in the work in the in the background. Blue is grants u but it has not been moved forward yet. Um that one is not the same. I believe that one's not the same grant as the others. The others are recreational trails grants um for Butler Park. Um it's the opposite of that. That's a recreational trails grant backwards backwards. And the others are land and water.

Land and water. Land and water. So the land and waters got bumped up. The recreational trails, it's in process, but it it we don't project it to be next fiscal year. Okay. Thank you. The um trail grant, there's preliminary things you have to do for rideway related to the trail. Um you have to do certain environmental steps and it does take longer to move those into construction. The other land and water is purely administrative on the the DLG side. I have a question on the on last week's numbers it was 910,000 for parks for total priority

priority. So we upped the I mean Millennium Park Performance Pavilion. That's Yeah. Th So the the ones in blue are the projects that are grant funded that moved from priority two up to priority one as a result of the landing department of local government reaching out and saying you will have those grant dollars. So all three of those projects we have to show those at an expenditure, but you do have revenue that will offset 80% of those costs. I think those are all 8020 grants.

Maybe maybe there was a typo on the last one because that math isn't math. If you add a million to 910, but I'd have to double check and see what exactly it is. But the two the 500 for the performance pavilion and the 500 for Jackson Park were both not in your first priority last time. And then the county sitting 125 for the for the performance pavilion. So that grant is a 5050 match. So it' be 250 um

as a local contribution and the county has agreed to split that in half with us. So at the end of the day we would the city's total contribution of city funds would be 125 but we do have to budget that full expense. So and their 125 would offset our 250 as local saying um the Jackson Park um is also a 50/50, but the county declined to participate on that. And then Butler Park is a 5050. So, we would end up with um 80,000 back from those grant funds. The note about pickle ball at the bottom.

Yes. Um this court has agreed, excuse me, investing 900,000 into the pickle ball. That is correct. Yeah, that is that is as of their most recent um information to us uh as of this morning. And they're asking us to offset they're asking the commission to consider putting the shade structure up over over three of the courts for the 150 for the 150 you. So the 150 it's right above the that last blue one of Jackson Park. Um yeah. in the skate park. It really hasn't been approved yet, but money's in there. So, we're budgeting,

right? Um Josh will be they are anticipating being able to bring the updated contract to you all at the commission meeting on Monday and or the next budget meeting if it drags out a little bit. But they're waiting their um getting those numbers back from their vendor as their update from this morning. But that's that total the 415 contribution from the county plus the 430 of our contribution is the total project where they had allocated a little we had allocated a little less last year.

I mean and I like this obviously Jackson Parks Flash Pad is awesome that that's moving up because that's in the aquatics whatever but I I I guess for me you know when we did our priorities two years ago um You know, we were talking about different things in that than are budgeted here and we still have made no progress on, you know, not much progress on any of our So, the indoor Yeah. So, the indoor rack,

excuse me. So, the indoor wreck, we will hear their report. Uh, I think it's the end of the week after next or I think it's the first week of May is when the meeting scheduled. So, we'll hear their final report to to the city and the hospital. Then on the aquatics what we we have in the budget to now that now that we know the space where the the aquatics can land. So we are proposing to spend $50,000 on the the preliminary perform aquatics so that we can start that. So that the process of moving it forward is understanding the space where that will go. Right. And that that is in planning the the county's consultant in planning the pickle ball courts and planning where the skate park were going has left us the space for the aquatics facility. So now we understand where that what that space will look like. Well, I mean, if the commission I don't know that we've decided where to put it, but we've been everywhere.

No, that's correct. So, that would be something that would come back to us. Correct. Which is

which is what the perform So, the the performer will tell you what your revenue will be at that spot versus somewhere else. So, at at the the location where the pickle ball will be, you're going to maximize u tourism revenue on the on the aquatics on the weekend. if you move it to a standalone place, you're you're you're going to see less of that. And so the purpose of of doing the evaluation now that we know where that spot is and can be is so that we'll understand that revenue difference. So we got to un before you build your pool, you got to under before you can really start scoping a pool, you've got to understand how much you can afford. A big piece of that is is the number of visitors you're going to have come through the door. And so that is highly dependent now that we know we can put it at this location then versus this location that that difference it we need to understand that be and and be able to give that to you because we don't want you to make a decision just solely on well we want it here versus here because here it may need to be fully funded with operating revenues out of the general fund versus over here where you're going to get a lot more visitor revenue. Right? So, we're going to try to put that together. That's what in in the fourth line from the top, the indoor rack and aquatics. That's the first step in developing now. Now that you have two options that are legitimately lo locations for a pool, that's your first step is being able to understand what you can afford at each location.

What do you consider those the two options? the well what we've talked about you you you really structurally only have three um that that we that we've had dialogue about and so we are not counting Jenny Rogers in that necessarily today we're holding that as as an option if that's something you all pull out and want to do that's going to be part of the part of but we know what that cost is structurally we know what the capital cost is there already so the the options on this side of town is something married to the wellness center, something at the fairgrounds, now now the mill what we call the Millennium Park expansion and then something at this site inside of Millennium Park. So what what the word from our consultant advisors, I guess the people that that are in that industry, what the suggestion is is that there the revenue differences between the bypass and this location will be much there will be a significant difference in revenue at each one of those that you'll want to consider those first. And so that's this money starts that process of trying to detail which which site you want to pick.

Yeah. And my my thing is that if we have been con if we if we get convinced or we have already been convinced that the best location is Million Park and it resolves two things for me. It's on uh it's inside the bypass which cuts down on traffic for those who want to ride their bikes and stuff. And the second thing is that's the only location we can consider but we'll have a 50-50 partnership.

Yeah. The the the more more likely to get count. Yes, that's a true statement. And and the the um to some some of the schedule I agree is I'm trying to verbalize and articulate which is difficult because it is it is a little bit in in in my head in that um what the concern is to to Donna's point on the indoor wreck and and is well you're not sure this is where you're going to put the indoor wreck yet? And that's true. Um so so as you as you it is easy to pivot if you if you can't if the if the um McDow Wellness Center is not a partnership for indoor wreck. If that doesn't come to fruition and doesn't become something that you're interested in, it's easy to pivot that back to the the fairground site. Um versus because you know you can't build that in in Millennium Park. you don't have room, right? So, so that's really your only other option for an indoor wreck facility that's in your in your u system of land, right? And so, so the the pivot will be after you know what the conclusion is on your with with the study that you're actively engaged in, right? So that's that in terms of process, the evaluation of of the indoor wreck is is ongoing and it's you're in process for that even though it doesn't it feels stagnant to you. Um but you're going to get that report in the the first week of May which is in two weeks. So you'll get that report from them. you'll you'll try to decide is that something you want to do and then then if it's not then you're pivoting to an alternative site. The pool will will necessarily you you will

necessarily need to consider the revenue at your pool and so you're going to want to know the results or the predictions of your revenue in Millennium Park as a standalone no matter what. Otherwise, you're you're you don't know really what how you're going to pay for it fully, right? So, you need to know what that revenue is just in case you pivot that direction. So, you're really building building your your shopping cart. You're building information inside of inside of your your options. And I the other thing I want to share is that I' I've been trying to sell a fur grounds to a potential buyer who then would give us another option for indoor recre and aquatics but they don't seem to be willing to bite on half of the fra because it's about joint ownership. You understand that message? Okay. Well, I I like the the 22 million stay in the budget. Uh and I like the fact that it would be hope be a joint uh bond issues. And uh I I see uh with this $50,000 expenditure, we'll have some definite decisions to make about moving forward. the indirect wreck facility in Madisonville that we just went and looked at um was a $20 million structure. It the to to to talk about how complicated or or what you're trying to navigate in the Madisonville scenario, the city of Madisonville bonded $6 million. The county provided u about $13.5 million of

expenses. So the county bonded 13.5, gave that to the project. The city bonded six, gave that to the project, but the city agreed to bear all the operating expenses at the facility long term. Right. So there's there's 50 different ways to skin the cat. And that was no aquatics. And that was that was no aquatics. Yeah. Right. It's a nice facility.

It's it's it's a big facility, too. Yeah. Other questions or comments? So, just keep the discussion going. So, so these numbers are what's in there, what we added since the last time we were here. Um, we added the operational changes that we were showing you on on top. We Lee and I talked through it. Um, and so what we're recommending, my my recommendation on the communications 911 is is shifted towards let's full fully fund that. And I'm basing that on the numbers you all gave me and and and for the community agencies and and what the fund balance was at the time. So I would suggest doing that market adjustment this year fully. Um then uh make the reclassification for the police detective, add a maintenance worker for public works, but let's make that higher January 1st and then uh do the adjustment in the for the HR clerk. That totals $140,000 out of that $459 that we had if you'll remember, right? make those personnel changes. That adds one position in January. Now, for the other positions, I'm going to go out on a limb and say if you if you're going to address additional public safety employees, my suggestion is do the three firefighters first and do all three of them. Um you you can't just do one. That does you no good. So, you need to hire three firefighters if you want to do it like that. Um and then as a second tier we'll do the police officer and then you'll consider the code enforcement officer. Saying that

what what you said that um just hiring one wouldn't be worth it. I mean what's what's your thinking that there's 2448 shifts. So So just adding an employee would only add a firefighter on Monday and so it would be so those next two days you're back to the old old coverage. Okay.

And so if you're going to make the shift to adding four people on a truck in the short term, then you need to do four people on every shift so that so that the firefighters that are working have the same response. So you can you can you got consistency in what their expectations are. They want to go to the scene. They know they got four people on the truck versus three, right? So you need to you need our our advice is to add three. I mean, you could add one, don't get me wrong. I'm just not I wouldn't Right. You're you're diminishing your investment if you do it like that. But on if you did half the year so that's exactly what I was going to talk about.

Half a year for I'm I'm basing it on the chief's recommendation about the truck. I don't understand all that something about Yeah, there's three and four, right? And that's something related to our ISO rating. It can improve your ISO rating over time. That's what he said to us. So I'm thinking in the big scheme that's helping people in the community

it will and so so which is which is what based on the revenue projections the way we sit today what I'm suggesting to you is is include in your expenses the 140,000 and and then fund the community agencies based on your averages which is what I was about to show you. So then once you do that, these new positions, I would I would we can assess that after we get the April 30th numbers, look at the budget again, make sure our projection is is solid, and then you can make a decision in April 30th to hire a midyear, which is going to add about $250,000 in new expenses that are then going to turn into $500,000 the next budget cycle. So, let's what I'm suggesting to you is hold off on that until you see your your updated revenue projections to see if our revenue is climbing. And if it is not climbing in in as you make this budget as you you you uh adopt a budget in Jan July 1 for July 1, then we can come back when we get our December numbers with revenue. We'll see how the next 10 months plays out. Then then what we'll do is we'll come back with a proposal to you in January to add add three firefighters in January real time. We'll do a budget amendment and can add them then.

Well on the police I mean ask Tony I maybe I looks like is it you know you're adding that you're reclassifying a police officer to detective. So that's why he's asking for the police officer. Correct. Tony or you all, right? That's what I'm saying. You You'll need to back field more particularly though for me the way when when the chief and I have talked about it. We have to grow the police department because town's growing, right?

So, we can't just have a cycle where we have a whole new precinct and now we've got to add four police officers or five police officers. So it's the move of adding a police recruit is a move towards just normal growth of the police department to accommodate population growth and service demand growth. Right. Same thing for the fire department. Right. We we it it's our recommendation that that we add those four positions. What I'm what I'm trying to do is try to figure out when you can have when we do that. Okay.

Right. I'm not I'm not objecting or trying to be hesitant on on saying we don't need those. That's not at all what I'm saying. So what what I'm what I'm trying to propose to you is the best timing that I can see for you to consider that fully or fund it. Right. The I was just question because I I thought if he does a detective, he's taken away a police officer. So that's why he actually needs that position because you're pulling somebody else to detectives. So I understand. Yeah. I just want to make sure that's Yeah, we need we need to to add the detective classification regardless of whether or not we add that police officer in my opinion based on the conversations. Chief, is that not correct?

That's correct. Right. So, so we need to add the police detective reclass. Yeah. So, then saying that though for me then we've got two more steps that we would want to consider. we want to consider at when we come back after we get our April numbers in um that that next budget meeting after we get those numbers we can revisit whether or not we add some of these staff half year then or full year then and then you certainly I'm I'm a big I it doesn't offend me to do a budget amendment right so when we get into December if our revenue is trending sufficient to absorb the the halfyear expense of those let's start the process process in January and do a budget amendment and add those four positions.

But we can look in April, too. We I want to look both times. I want to look when we come back with our April numbers. We'll revisit this and then when we get to to the December numbers, we'll revisit this again if we have to. Does that make sense? I'm I'm there's nobody's pushing back on on the hires. We're trying to figure out when the best time to make the hires are because we know that there's growth in in the community. We know that the demand is growing and so we're we're we are advocating for the additions. I'm just trying to figure out when you can pay for them.

Now 911 the adjustment would be in addition to the raise. So So they were 10.5 on average they were 10.57% under the market. The raise is about 2.7% cola. This is the difference between that 2.7% and the 10.5%. So not Yeah. Right. So this would represent about eight say 8% extra that keeps 911 in the same range as the other positions of the city.

Yeah. The the reason I I one of the reasons why I wanted to go ahead and bump that into the into the fiscal year you're in because that cleans the table on that. that that's that right now structurally that's the department that you have that is most under market that makes that correction in full so that we can set that aside as an issue that that we've solved as a group. Right. Is there another possible way in our current budget to finance these additional five positions? Not in the short term. Not until we get further along in our revenue. Yeah.

You really did. I realistically, right, if you go through and cut things to add them in, you're cutting things that we have to pay anyway. You're cutting an electric bill. And until we have more revenue projections and we can confidently say yes, based on FY26 collections that we've received, we are comfortable raising next year's revenue. Um, at the end of at the end of April, you have one of your quarters of insurance premium taxes due. Um, April 15th, as y'all are aware, is tax deadline, right? So, we see that collection late April, early May. Um, you have a couple big quarters that end up that end in April and so and then into May. So that that difference between the April insurance premium tax collection date and then miday when we will receive our April 15th tax collections is a big a big 30 days um of collection periods where you generate um a lot of revenue several several million dollars usually or more. So today, no. If you if you if you ask us to put in 500,000 additional personnel cost, then I'm cutting your electric bills and your water bills and your um

mowing contract. Mowing contract, little things like that start have to do. So, I wanted to ask that question. I knew you would answer it the same way that Earl answered it, but totally different. He's a little more diplomatic than I am. Well, well, it's okay, though. Sometimes we have to hear what the real bottom line is. And there are a lot of people out there going to listen to this and do this. And it's important that they hear the bottom line. We'd like to do all these positions, but not at the sake of destroying other things that are important to us as a as a community.

When when we by the time let me be let be open about this. by the time the the positions get up there on the screen, I've talked to those chiefs or those uh department heads and and they've convinced me. Otherwise, I would be talking them down in their offices with them. So, so once once we get to a point where, you know, Mike comes in and says, "I want three people." That's not a that's not a uh just a wild wild thing that he's doing. You know, we we have actively talked about it. We've been on his blackboard. He's pointed out some weaknesses. He's pointed out some strengths and some advantages to to hiring three, some disadvantages to hiring three. You know, uh how we transition from from where we're at today to a full another state. We've talked through all of those things. And so for me, what I'd like to see us do in terms of uh in increasing the likelihood of long-term success for the city to maintain its services. My suggestion is to that that you probably it's time to add those three people, but we've just got to figure out when,

right? Like the exact timing of it. That's good to hear. Yeah.

Right. And I appreciate I mean, as you can see, the recommendations for community agencies are at an all-time low and obviously that was because I mean, I was like, "Yeah, we need a firefighter. You know, we got to keep these down." So, so the next slide is is where these fell out. The the 20 27 recommendation column is on the right for each category. Um the budget request is on the left and and the level they were actually funded is on the right. compared compared to your FY26 what we actually allocated you had at 557,000 versus our recommendation for this year which is 339,000 which helped absorb um that maintenance worker and those 911 um

increases increases yeah yeah so your all's work um 100% provided us the room to make those changes in this budget cycle.

The only one I was concerned about is the EDA. So the EDA is not really understood. A lot of a lot of the EDA really doesn't have pure operating expenses.

Um it it has capital expenditures. the current the highest two right now. Then so it will have miscellaneous expenses, but it's all embedded in the development of those those infrastructures. The North Stewart's Lane extension uh is an ongoing project. It it it is got a contract of about um I can't remember what the dollar amount is off top of my head. Um but but the uh that money is a is half of that will come in at in the fiscal year you're in. The other half will be next year probably. Um some of those expenses are municipal aid eligible. So what we're suggesting is you fund North Lane out of reserves as it comes in as a real-time expense as a c aligned with a capital expense because it's not a reoccurring expense. It's an investment. So once you build that road then your theoretically your mileage at at the department of lo local government changes in your municipal aid road fund you'll get a slightly higher increase to that fund a year with revenue because you have more lane miles of roadway. So the the investment in roadway infrastructure is is we I don't consider that in the same way that that uh for example Terry will Terry will say well I need $300,000 this year. Well, 200 of that is roadway investment and 50 is site uh to to to apply for the Kentucky site ready program. Well, you know, that may have to come out of the reserves that you've already stockpiled in the short term while you're financing your roadway construction and and the city will pay for that as you go, right? That that's typically what you would see. um we wouldn't take $200,000 out of the city's u reserves and put that in reserves necessarily at the EDA at that level, but we would just keep that with the city until it's needed. In other

words, we've included in there the 10,000. That's to cover what are their quote unquote operating costs such as their the cost of their audit or their bookkeeping or um you know the miscellaneous maybe fees they need to pay at the bank. Um, and we have included in your large spreadsheets um, funding for EDA through the municipal aid fund um, for next year for the requests they do make.

The the one I was hoping we could find squeeze some money out was the mayor's been advocating the homeless coalition and wanting us to be a sponsor of a house I wish we could do that. Is there any how much do we think that is or do we know how much How much would that cost us to sponsor a house to to sponsor uh the tiny house? I have no idea. I I don't work in construction. Kevin, um I am happy to I was more asking Earl, but I don't you looking at me. I was getting confused. Well, I don't have their funding application in front of me. I know that their request was for 25,000.

I think their their request was specifically for hotel um vouchers and so we don't have I don't believe we have a cost from them on the tiny home. We we gave them 10,000 last winter for vouchers and that was used immediately for uh that cold snap we had in January, February. Um, I believe there's 2500 that we're recommending now would also go to um the housing voucher or hotel vouchers for the winter. Um,

I don't I I don't recall Kevin what their estimate was on one of those houses. We can find out and secondarily or not. Yeah, we I will know that next Tuesday when we meet again. Okay. That would be good to hear because to me, I mean, the vouchers are great, but that would be more permanent. Yeah. A permanent help. And I hope they can all find sponsors for different homes to be built. And we we hear from our constituents that they'd like us to help with homelessness. So, I'd like to look at it, too. I think we can take it out of Smarty Bridg's pants. pay over there and just

I don't think you can um say

so so then moving past moving moving past I hear that if there's no other questions we'll we'll go on to the capital list that's in front of you the column on the left it's in your packet is is your uh direct uh reserve funded capital in both both well there's three three or four funds there but hopefully that yeah that aligns with your your list that you have in front of you on the master spreadsheet pretty simply and then so then the municipal aid the bofin avenue sidewalk cemetery fund parking fund those those were as noted the last time stormwater fund is got two two things he's identif including the purchase of a mini excavator for the storm water.

Earl, could you kind of go over the process? I've had people that complain said you just give them whatever they want. Um, so, you know, all they have to do is ask, but that's not entirely the case. You they prioritize them, number one, and then you go over it with them and make sure that it's something that's really needed.

That's correct. So the the there's two different kinds of capital. There's the operating capital which is your equipment which is qualifies as a capital purchase because it's more than the the minimum cash and it's got a depreciation of more than a year you know that kind of thing. So we consider consider that capital. So for example your new recorder for dispatch or your new CAD system those are cap considered capital investments. The new CAD system is 117,000. So, so you that is in in the the department has a working list of operating capital that they have that's really a a five or 10 year uh look ahead for them. And so the first priorities are really funded out of that one-year look as it's adjusted each each year. And so then from that we have to peel that number down to what you can do out of reserves. the capital that's in this column. We don't want to be in a situation where we borrow money to to to have these expenditures. This is purely out of out of operating reserves and and it is we consider and call this operating capital that is nonoperating is something like fire station next door where you have debt service long-term debt that's that's consistent with the life of the building.

What are our reserves right now? I guess in the percentage you know uh I think we have to have

so we it's it's not required um by law or um it is an internal policy um that we maintain 25% of our um operations plus your debt service plus your non-EP departmental expenses. Um so our target is uh 6.5 which is your 25 but however we keep that um we keep closer to we target as a budgeting mechanism closer to that 13 um 13 million or so um as as your fund balance. Um that's a little bit different than true cash reserves and um that's some accounting technique in there. Um that's on our our internal schedule for our next budget meeting to kind of go over.

Um but that is your general funds on page 11. Yeah, I didn't see a page number, but it's the first page where you got Oh, it's at the very bottom. There it is. I've been trying that one. I've been trying to make those bigger for three weeks, but no luck. 13 internally. We have 25% that we supposed to keep in reserves. Yes. And so what is the 13 million? Is that above? So that's that's above that that 25%. That's about 50%. 50% just because um

you got different you got you got so so the the the by policy

by policy your fund balance is required to be 6.578. Right. 6,578,000. That's your policy. The when the above that there is some numbers that are restricted based on debt service. So you got all your uh debt service accounts. That number then the total amount that you have is approximately 13.3. And we we that's kind of right there with the the floor with where we're we wouldn't we don't really want to go recommend going below that. you could pull the number down lower and invest, but but what we would like to do honestly next year in the in the 12-month period we're going into and in next year's budget cycle, this list of and I've the the department heads don't haven't heard this yet, but next year we are going to suggest this list be minimized totally because I would like to because you do have to understand you're going to build another fire station eventually. you're going to have to renovate a couple different things. So, what we'd like to do is stockpile a little bit in build our reserve back up so that we can fund the planning dollars without having to debt service the planning dollars necessary for those larger projects. So, so we we are focused on trying to maintain um our our fund balance that in a in a way that that we can use it to your advantage, right? like so the 13.3 which is on that slide is is what's projected. Um and so c certainly over the next 12 18 months we'd like to add add to that number and and spend less of the year on operating capital next year. And when I say we'd like to, I'm saying that's that would be our recommendation to you, right? If if you want to if

you're trying to manage uh a project expense of a new fire station, you're better off it. The fire station is a hard asset, but the design dollars on the front side of that are not. So, I'd rather fund the design dollars out of reserve ra and and finance your structure rather than finance all those soft costs that are on the front side of that project. So we're trying to put ourselves in a situation where if if the city chooses to build a fire station and build do those things and you have the reserves necessary to absorb those soft costs so that those aren't embedded in your debt service

like on the I just worry because we talk about all all the things we need and then I know the police department asked last year in the budget for some renovations internally and maybe we're doing some maybe we're not maybe we're just waiting we've cleaned the floor. But what what we realized when we went through that process is is that is that facility is really over staff now. That facility's got 18,900 square feet in it. They probably need 24,000 square feet. So, so what we are suggesting to you is let's not renovate that until we till we go through the process. And it it's in your uh program.

It's in it's your facilities plan. Correct. So, what we'd like to do is go through the exercise and verify what square footage need the police department currently has based on its current staffing level. We'll do the same thing with dispatch. We'll do the same thing with all the city departments. And then when you're planning that that third fire station, then you can you can decide, are you only building a fire station? Are you adding the square footage for dispatch? are you adding some of the offset of square footage that the police need, some of their deficit, which we know they'll have one. So, our suggestion is you may have u police admin, police detectives, things like that here in the building, and you may have a patrol uh spot at a new building with fire. We don't know that yet. You're going to talk about those things as you go through the development of that facility's plan.

Yeah. and and and I freely acknowledge it's we we talked about this some time back and but I'll repeat it now. We have a lot of department heads that are doing a lot of work and and you know look at Marshall's list, right? We we're and Josh is on the B and we're doing all these things and the police and the fire. We we uh if you need us to slow down when we're making present presentations because we know we're living it. We live it every day and so we're more current on information and we know that and we're not trying to undercommunicate to you. If you want to come in and spend uh time understanding more about what we're talking about with please feel free just come by and we we'll I I don't want to necessarily burden you all with hey come and see me tomorrow and we'll talk about everything. I don't want to do that as you all have a question. I I really lend on you guys asking hey I I'd like to come in and talk about this because I don't understand it. when when you see those those moments start to creep up because we are jumping subjects, we are jumping ahead because it's it's going to be two weeks before a regular commission meeting where we've done all kinds of things in that twoe period. We've had two or three crises, right, that we've we've worked on. And so so please feel free to to indicate and we'll we'll continue to try to communicate outwardly as best we can. Um, we try to get the department heads in front of you on a quarterly basis at the la at the least. Um, we try to constantly have an update of some department on the agenda for you at the regular meetings. But even then, we know that we're doing a lot in between meetings. So, if if if ever there's a um feeling that we're out in front of you, please feel free to come by and and we'll we'll try to give you what we told you last time and try to

get get it get everybody on the same page because there's no department head is intentionally trying to get out in front of anybody, right? It's if if it is, it's purely we've not communicated sufficiently and we'll be happy to do that. Yeah, I was just saying looking at last year's budget request, what they asked for, you know, it's not there any like the public works garage, the mechanic is he's in he they're in a heated air conditioned place now. They're in the building, but they're not enclosed and they're not in a um in their own space inside of that building. Okay. Right. But it's working and is heating.

We can get by, but it's more expensive to heat and cool that larger space because what happens is when he's out in that open open part of the building, they have to to get a workable temperature in there in the winter time, for example, they have to heat a much larger space. And so what Josh is talking about, if you wall that in, then he can heat and cool the mechanic space a lot more efficiently than and then you can let the temperature drop in other parts of the larger lar larger part of the building. You don't have to keep that as warm. So there's

there was there was Josh and I talked about that he did like we talked about, oh, it wasn't included last year. Do we need to include it this year? and he had and I I'm gonna I can't remember his exact reasoning, but something had changed over at public works, right? So that he was comfortable not prioritizing it this year. Right. Other questions or comments?

You guys have anything else? Any final comments? You got one more slide. Yeah, we've got the utility fund slide. Um Josh is

Yeah, there I mean Marshall's gotten uh we've gotten pretty pretty lucky this year with some grant funds. Um for example, on the wastewater plant. Um right now it looks like we've got $12 million from the state over the next two calendar uh years. Uh seven and a half this year, the balance next. That's a big deal that goes towards the construction of of phase two of the wastewater plant, which is a $17 million project. So that that uh that's a big deal. And and um the state included $4 million for the design development of the 150 waterline project and corridor development that's going to be going towards the first big piece of infrastructure for the utility commission to provide interconnectivity between here and Lincoln County. and then parts of Rockcastle County. Um, which is which is a good thing. The water is it's all in the Dixs River watershed. Any water used that's returned comes back to us in the same way that Clark's Run Water does. So, so it it it it is a good use of the water. Um, and so our next meeting will be next Tuesday and we'll we will try to begin to summarize what the budget looks like today and then I'll have some of those questions answered about the um um homeless coalition Kevin and then um we will have a little bit of a pause with some of the the conflicts we have in May and then we'll come back after after that and we'll we'll have by then the June meeting we'll have the updated revenue numbers and we'll be able to re restart from there with any more additions that you want.

So in June we can talk about if there's any money to add a position.

That's the intent. Yeah. So by June 2nd, we should have um all of our insurance premium collections for um the first quarter of the year, which runs January through March, and it's supposed to be reported by the end of April. Those trickle in over the next like the first week or two of May because of the mail. And then by April or I'm sorry, May 15th, we will have April collections from the Occupational Tax Office, which is your April 15th tax deadline. So between those between April 15th and May 15th, you you do usually collect a couple hundred um you collect usually May is usually somewhere in the range of 7 to800,000 in net profits um plus a couple hundred,000 in your um occupational payroll tax. And then you're collecting anywhere from 750 to uh 900 in insurance premium tax collections. Um and that gives you a kind of a good snapshot of where you're at compared to prior periods in the year and prior years to make sure that we're on track with our current year projections and then to assess how next year looks. So

yeah, it's a good time for a little bit after next week. You'll have you'll have a couple weeks off and with budget meetings. And so it's really a good time to to pause because we're really close today in our opinions and Lee and I uh in terms of having finished uh appropriation requests No compensating rate on on property. Other questions or comments? This has been good.

Hearing none, the chair will entertain a motion for adjournment. Uh, you got I'm sorry. Executive session. Well, you should have not corrected me on this one. Entertain a motion to go into executive session. Personally, I is there something to read? I will make a motion to go into executive session for personnel pursuant to KRS61.8101F.

Thank you, ma'am. Is there a second? I second it. All those who vote no, say I. All those in favor say I.

come out of executive session, please. So move. Thank you, sir. Is there a second? Second. Thank you, ma'am. All those in favor say I. I. Those opposed? Motion carries. Um, we have a motion that needs to be read and put into the record. Madam, uh, I'll make a motion. Uh based on the positive job performance and satisfactory evaluation of the city manager, I move that his salary be increased from 160 160,000 to 166,400 effective January 1st, 26, which equates to a 4% increase. Thank you, ma'am. Is there a second? Oh, thank you, ma'am. Any questions or comments?

Ridiculous. That's a ridiculous amount of money. No, I don't have anything. Any other comments hearing? None. Let's secur the motion. All those in favor say I. I. I. Those opposed. Motion carries. Thank you all. I appreciate that a lot. All those in favor? Oh, that's right. Yeah, we already did. We already voted. All those in favor? You didn't say I Hi. Hi.