Village Board - Regular Meeting

Here we go. Remind me to ask you if you Okay. I will uh call to order the Jones board meeting of December 1st. Would you please call the role there? Yes. Trusty Howler here. Trusty Casper here. Trusty Saunders here. Trusty Saraban here. Trusty Van Even Hovind here. Trusty Dentman here. And President Buckley

here. Thank you. Uh, first on the agenda is a public hearing on resolution 1388 to vacate certain parcels of property on Silver Spring and Lake Drive and 1389 to do a certified survey map alteration or single for Silver Spring and Lake Drives. Are we going to talk about this later in general business? Yes, there we are. Okay.

So, firstly, is there anyone here for that public hearing who would like to be heard? on those two topics once twice then I will close the public hearing and we'll talk about that in about 10 minutes. Uh next is the consent agenda. We have two items. First is the minutes of the regular meeting held November 17th and second is the strategic plan quarterly report reception. Any questions on either of those? Oh, okay. There was a typo in the strategic plan. Yeah, there was uh dates.

Yes. Um it's like it began in 2026 and ended in 2025. So, check the dates. I can show it to you because I haven't Yeah, I can't I made a note of it, but it's not It's noted in the record. So, all right. We will now move. I'm sorry. May consent agenda. Can I get an a motion to approve the consent agenda? I move the village board approve the consent agenda as amended. Thank you. Do I hear a second? Second. Thank you, Sam. Uh, any further discussion? Hearing none. All those in favor say I. I. I. Any opposed? Motion carries. Thank you. We'll now move on to report of the village officers. Mr. Village attorney.

Nothing to report.

It's village manager. So, our I know it has been um a rough weekend with leaves and snow uh for residents, but also for our DPW crews. And I would say across the entire metro, um most communities are dealing with these same issues. So, our snow crews and we also have a dedicated leaf crew um are out working. Um they've worked all day and then they're going to be back in at 2 a.m. to continue that work. And so we are collecting leaves with a front-end loader and then also doing snow operations more specifically right now working on like the pedestrian areas and clearing some of those areas that require um more specialized equipment or in some cases hand work. Um so just want to reassure everyone that we are definitely on top of it and we're working on it. Um but this type of event rarely happens in November. Matt did look it up. The last one was 10 years ago and then prior to that it was 1975 that we had an event of this size in November. Um, and it also did just happen to coincide with what is undeniably the busiest week in public works across the state because you have leaf collection in full force in kind of a higher stress environment because obviously people want the piles gone prior to Thanksgiving. I understand um I want that as well. And then you have the snow operations. we have our parade and then also in general it's people want off for the holidays. Um we do restrict how many people can take off for the holidays. So we have those restrictions in that are in place for that week as well as other weeks. Um but then also in White White White Fish Bay we also have double collections because of the holidays. So with trash and recycling. So that's the same crews working in all of those areas. So I don't say that to um try to say we have to be happy with any level of service. I just say it because I think everyone being aware is it's just it's helpful.

It's a reason, not an excuse. Yep. Exactly. Yep. So, not trying to make excuses. We're we're out there working hard. Um our crews are certainly working very hard. Some of them I know 16 plus hour shifts. Um so, we are definitely out there working. Um but it is just a bit of the reality with the holiday week. It was unfortunate timing. Is there a brining truck down? I not that I've heard of, but I guess I can ask. I know that they were working last week to get the brining equipment running so that they could brine. Um I guess I never asked if we actually put some on the road. It was down on It was down on Silver Spring cuz we were walking over it during the during the parade. So it was definitely It was definitely down on Silver Spring at least.

Like maybe not as widely as we've done it in the past. I can check on that. Yeah, because like we didn't Brian before today. Yeah. Before tonight. Okay, sounds good. I can check on that.

Okay. Um and then also um we have the um annual required lead service line notification letters will be going out. Just want everyone to be aware that's something that will be happening this time of year every year moving forward. Uh this year we are going to do a postcard just to kind of simplify things because a majority of the information was sent out last year and then we did update the website with the most um relevant information from all the work that's happened this past year in that area. And then tax bills will be sent out in mid um December. To be noted, those lead service uh postcards are required by EPA regulation.

Yep, that's Yeah, that's correct. So, I know several have went out in different communities. I've gotten copies. Um ours were hoping to get out basically the last week of December is kind of the thought to the printer by December 15th. Uh village report. I have nothing to really report other than to be thankful for last week's uh uh [clears throat] work from the DPW and um that hopefully it was a safe parade, although I I missed it this time. Any miscellaneous trustee questions, comments? I mean, I was I I was just going to say great job to the EPW. I mean, I

the roads were clear. That's job number one. Like, if leaves and snow mix, no big deal. I mean, we'll survive. Yeah, we'll survive. I mean, but the roads were clear. Everything was plowed by the time I woke up. I mean, I thought they did a fantastic job.

I've I've been getting calls from a lot of different communities because like the Sussex DPW foreman called me today and was like, "What are you guys going to do?" Like everybody's in the same boat. This type of thing in November when leaf piles are big. It's just not a common occurrence. So, we will we'll get them picked up. It'll just be different this year. Other miscellaneous trustees. All right. Then we'll move on to petitions and communications. This is an opportunity for anyone in the audience to address the village board on any issue not on the current agenda. Is there anyone here to speak on something not on the agenda? Going once. All right. We will then close that and move on to general business. We have four or five items. The first is discussion on the 2025 financial management plan.

So I'll I'll welcome up Kayla Thorp who you all know um very well at this point. This is our third presentation related to the financial management plan with Ellers who's our financial adviserss. So this is more of kind of a wrap-up recap. There's not any new information that I saw. Um, but just to make sure everybody's on the same page as we essentially finalize this. Uh, I did put in the memo that there would be a final kind of written document. Um, but as Kayla was mentioning, I think it would be more helpful just to put together essentially like a a final slide deck, a little bit more visual, easier to read. Um, so we'll put that together and then can bring that back um at a final meeting based on the feedback today. Absolutely. Is there a way to is did I miss this?

Let me No, I just finished it this afternoon. makes me feel I I am going to forward it right now. You can follow along because yeah, I don't have to keep turning my head. Thank you.

I do have to apologize. I've been out of the office quite a bit in November. So, just putting the final touches on this today, but also um integrated some feedback that both Kelsey and Jamie had. Um and so, thank you for having me. Again, I won't take over an hour and a half so you don't [laughter] have to fall asleep. Um but just kind of a wrapup of the financial management plan. I want to highlight again why we are here. um really taking into account your historical operational and um capital budgeting trends and we build in that that into a very very conservative long-range levy forecast. And why I say very very conservative and I'll point out a number of reasons why um that have changed since our last look at this. Um, what this provides is you as a general assessment of the overall village's fiscal strengths and challenges, but also provides you working knowledge to make long-term decisions or start the conversation of making those long-term decisions. Um, and right now, we'll provide the framework for the 2027 budget process and beyond as this is an all-in model taking a look at all levy funded operation funds as well as all of your borrowed money and debt service funds. A few changes we have made since the last time we looked at this. we have rolled forward and into year 2026 budget. Last time that wasn't complete, so we projected off of 2025. Now we are projecting off of year 2026 um actual adopted budget provides a much more accurate um look forward. We have adop um updated a number of our assumptions and I will highlight that. Um and then where I want to stress the conservative nature of this is that this essential exercise is all non-propy tax levenues stay stagnant. All expenditures rise with given the assumptions we put in there. What is going to be the levy needed if god forbid we have no other nonpropy tax revenues come in? That's not saying what it is going to be. basically gives you a doomsday scenario of if we don't take in another dollar,

what is our levy going to be needed to sustain our current operations and then allow you to make the decisions um during your 27 and 26 execution of your budget um to really get an understanding of the long-term implications of your operations today. Um, kind of restating what I said, the only two major revenue sources we manipulated were shared revenue and transportation aids. Just given the recent legislation, we have an understanding and expectation that those will increase relative year-over-year about 2%. Everything else we kept relatively flat or matched some trends um based off of uh revenues that kind of fluctuate. Um, one off the top of my mind was like erosion control permits um, fluctuate with the amount of major construction in the village and we could see those trends. So, we're trying to trend that out um, moving forward. I made a major adjustment to your general fund expenditure methodology in particularly to employee health insurance. I'm understanding that you will be rejoining the pool. We had 12% annual compounding increases in the original plan. Um, now that you'll be in a pool and group rated, I can anticipate that that's going to drop. We do FMPPs for many pool clients. Um, and we use 7% for them even though they've been coming in at sometimes three, sometimes five, sometimes two. So, understanding that that is a conservative, it's less than you originally saw, but you've already made a major decision that's going to hopefully reduce your long-term expenditures on that major um kind of account. Every other expenditure has stayed the same in our methodology. This gives you an understanding kind of it's hard to tell but this is your general fund summary. On the top is revenues by um grouping code and then expenditures. Your 2026 um general fund budget is 13.2 million about five four and a half to 5% annual increases thereafter projecting mo moving forward. And this really just

kind of highlights the conservative nature of our approach on projections because as you can see here, you've had between two and three and a half% annual levy or annual budget increases over the last 3 years. And so obviously this is projecting a little bit higher. Again, nonpropy tax revenues are staying relatively stagnant. So between now and 2031, your budget is projected to increase between from 13.2 million to 15.9 million. We then build in your long-term CIP to get an understanding of what is the uh property tax levy impact from borrowing. This is as of your adopted CIP. We've made the changes you have made incrementally along the way. This picture has not changed significantly since you first saw this. Um the only updates we made outside of the actual CIP is we updated the average home value from about 635 to 685. um just to give an more accurate reflection of kind of where you currently stand on average home value. Um there is an unavoidable increase between the 2026 debt service levy, which is actually a decrease from 25 to the 27 debt service levy increase um which is just over $300,000. your 26 borrowing that we have not executed yet that will hit in 27. We built into this plan with no principal payments just because we are trying to mitigate that tax impact as much as humanly possible. What the actual tax impact ends up being, we'll know later this year or late early next year when we do the actual borrowing and get an understanding of what's the interest rate and if we're able to downsize the borrowing at all. And so right now anticipated to be about $313,000 thereafter very minimal increases about 30 um on the low end 26,000 at the high end 30,000 now through 2032 and this is a look at your all-in CIP. So, that is

20 26 through 2030 borrowings, which is about $75 million in projects. Um, we'll really have a one-year major impact. Um, some nominal 5-year impacts, and then that's when your debt starts to fall off pretty dramatically. Um, as I told Kelsey and Jamie this morning, any debt at that would come on that we'd borrow in 2032 or 2034 would be structured around what you see as negative levy adjustments to really stabilize and flatline the property tax levy needed to pay debt service as much as possible. And then giving you a snapshot of your general obligation borrowing capacity. just trying to exercise that even taking on some pretty significant borrowings and projects over the next 5 years, you still have um a pretty stable and good amount of capacity left. Um Max is out in 2026 with 29% of your statutory debt capacity. That that's very minimal kind of in what we see across the state. Um basically giving that you still have significant pack capacity in the amount of $146 million you could borrow should you need to. And then obviously that uh drops down as you pay off debt. So we have no concerns as far as a borrowing capacity or kind of what the uh debt service tax levy impact is given the pretty significant CIP. um we took a look at all levy funded um funds and so that includes your general fund, your capital fund, the library special revenue fund, debt service um funds. And so we included the CIP to both mirror what you are currently cash funding for capital through the property tax levy as well as what the debt service levy would need to support the debt for the capital projects. This is kind of that snapshot for all of your funds. And this is where we start to get an understanding of what would the property tax levy need to be if we needed to fund these budgets with no

additional revenue. And so your 2026 property tax levy is currently 13.8 million. We projected to increase to 14.3 in 27 and then up to 17 million in 2031. This is not saying you have the legal ability to levy this amount. It's just saying that if we needed a zero sum game, this is what the levy would need to look like. Um, and then we project that out as to a tax rate, this is on an equalized basis. We don't, at least I don't like to kind of build in assessment calculations. One, because we know you're going to be doing a significant riaval here coming up. Um, but the village typically has some pretty big swings in assessment value and it's hard to kind of project that out moving forward. Um so the tax rate and tax rate impact you see as an on an equalized basis if all things left equal. Um pretty minimal again tax impact but that is if you could levy that amount which going to the next chart shows you don't have the ability to levy that amount which that message has not changed since the last time and this is the exercise of ultraconservative. We know we have some structural issues coming forward. what conversations and decisions can we start having now about the rate of expenditures, the method in which we provide services, um the our staffing structure, all of those kind of things you've already been talking about and have done some pretty heavy lifting on it over the last year um to take on how can we eat into that deficit. Um one of my recommendations on a later side is kind of pull out the lowhanging fruit. I just did a quick scan of your expenditures in within your general fund and identified between 570 and 650,000 embedded um what can be considered capital within your operational budget that kind of the last resort is you pull that out you borrow for it preserve that levy capacity to put back in towards operations and also the use of a beta debt like you have done for Northshore fire capital piece this year this line E

includes kind of what I projected forward forward for Northshore Fire Capital, but at the end of the day that you still have significant abated debt capacity in 27 it will be 5.3 million up to 6.6 million in 2031. And so understanding you have some wiggle room, but know that the same conversation we had in August still remains today even updated with your um 2026 budget. Just wanted to quickly highlight the utility impacts again. Um Ellers has been engaged to undertake a test year 2026 utility conventional rate case with the PSC for water. Um we are projecting that that will not hit until um 2027. It takes about a year to get through a conventional case before you can implement rates. Um but the the utility and the village did go for a simplified rate increase in 25. Um that's about 3% which will hit in as of 1126. This is kind of a look forward in the balance between conventional cases which you see are double-digit numbers and your simplified cases which are your single-digit numbers kind of to sustain the utility side of the CIP and utility operating costs over that extended period of time. The fat red line is the end of your CIP. So therefore kind of those projections moving forward don't take into account as future CIP over this planning period which is 10 years any our projected impact on uh the average consumer which is about 12,000 gallons of water is $43.66 66 cents over 10 years. Same analysis on the sewer side. A much better picture. I have just built in some every other or every third year. Um inflationary increases. The sewer and stormwater utility are at the discretion of the village board. You don't need to seek public authority approval to approve those rates. Um so really minimal those increases really are to keep up with the cost of inflation and really should be evaluated on an annual

basis to ensure that those revenues are meeting the demands. but about uh $23.80 increase over the planning period. Storm water is the same kind of analysis. Inflationary increases. I have offset these. The reason why they kind of look wonky is I offset these inflationary increases on the major conventional case years. So you're not kind of hitting with a major conventional water case and a sewer and storm water increase. Um and this is again $40.16 over 10 years. So in sewer and storm water, much better picture than water. But again, water, the inability to be proactive on rates is to the detriment um is that you have to wait and be reactionary and by the time you get the new rates, they're already out of date. And it's just this vicious cycle we live in with public service commission. um taking a look at kind of what that unit affordab affordab affordability analysis um as well as what is the uh change in allin utility bills for all u three utilities over this planning period. So 10 years is about $467 on an average residential consumer. Um, so eventually achieving all of your utility projects and your operations with only increasing rates um, $467 over 10 years. That equates at the high point to about 1.15% of affordability on the average household median income in the village, which is $154,000. Um, unit or affordability per utility is measured at 2%. And so if this neared 6% we'd be concerned, but since we're only at 1% there's no really concern as to affordability. Now that doesn't kind of take into account the outliers of your lowincome residents which we are always um sensitive to, but as a measure that we can document and that's widely spread against around the industry um it's up to 2% per utility.

C curious on that last screen, do you adjust the MHI medium income three inflation per year? Cuz like obviously it's 154 in 2025, but in 2035 it's Yes, I did not. This is just a measure as of what the documented numbers are actually better going forward because

and this is already out of date. it. This is 24 certified median household income by the American Census um bureau or the American Community Survey. Unfortunately, they are not back up to date yet after the government shutdown. So, I kept it as 2024. So, yes, that percentage will narrow as median household income increases within the village. Um, looking ahead to some recommendations, like I mentioned, identify that lowhanging fruit as immediate fixes to bite into any levy gaps. Um and then you can identify the cash funded capital baked into operational budgets. Consider a funding shift to use debt in lie of levy capacity and or use abated debt to achieve those near cash financing or catch financing for smaller capital projects. It's be very similar to what you did this year with the Northshore Fire Capital. I will give a special recognition to both Kelsey and Jamie. Um, Kelsey and Jamie noticed that the 2026 Northshore Fire budget did not conform to allow any member community to utilize the levy exemption. Um, this year the maximum increase from Northshore Fire allin could have been 4.7% to for all communities to utilize the exemption. It was about 5.9%. Um, and Kelsey and Jamie were the only people in the entire district that recognized that that was a problem. Um, and so we were actually able to work with Northshore Fire to reduce some charges to be able to conform to the 4.7% for all member communities. So you have a really great staff who is paying attention to every dollar um that the village is spending. Um, we're also recommending and have already been engaged to complete a test year 26 conventional rate case. We will get started on that as soon as the calendar rolls over um so that we can get that approved and implemented as soon as possible. Like I mentioned, evaluate sto sewer and storm water rates annually. You have great flexibility. Um, take a look at kind of what you need to bridge the gap between inflation and

operations. Um, and adjust accordingly. Annual smaller increases are a lot more tolerable than large infrequent increases. So, just keep that in mind when you're evaluating utilities and and related projects. Explore amending the general fund balance policy. And I will talk about this in a little bit. Um, we talked about that back in August, but I'll dive some deeper into some recommendations and why we're talking about that. And then continue with annual updates to this FMP to revi refine the levy gap, refine our projections, and really give you this working knowledge of no surprises. We didn't know that we had this gap coming um to be able to show and have these conversations year round versus just between August and November. um your current undesated general fund balance policy is 35% of the subsequent year operating revenues. If the general fund um surplus in an annual basis exceeds 35% or would allow the fund balance to exceed 35% any excess is automatically transferred into your retirey health insurance stabilization fund or your OPED fund. And then should the general fund unassigned fund balance drop below 35% the priority is to re-establish it at 35% and then any excess would go into the OPED fund. with conversations with your staff, the OPED fund is seemingly stabilized based off of your last actuary study and kind of remain stabilized just because a lot of those OPED obligations will start to fall off because now we have retirees who are hired under current contracts or contracts that eliminated those postemployment um health insurance benefits. And so, at least in my opinion and kind of speaking with staff, that automatic dump into the OPED stabilation stabilization fund may be not necessary to the level that it's currently been moving forward. Um, you are currently at

35% in your general fund balance. Your uh double A Moody's rating assigned is 35 plus. Um, my recommendations or things to consider is to consider increasing the general fund percentage threshold to 40 or 45%. It's currently at 35% to get to 45 or that's 40% actually not 45%. 40% would be an additional $651,000. You're not going to do that overnight. It's going to take a number of years to do that. Um, but this plays well for a number of reasons. one provides you greater reserves should something like a sinkhole happen and you need to expend qui cash quickly and it plays very well with the rating agencies there we're going to have to disclose to the rating agencies we have a $75 million CIP over the next 5 years while you have sufficient capacity and the ability to pay that back they're going to like seeing in a higher fund balance unassigned because again if the world ends you will have sufficient cash to make your debt service payments and not default on your debt. Identify your annual OPED liability and make sure that the fund is stabilized and fun properly funded to make that your um payment. And if your targets are identified by your actuarial study or your actual annual premiums due for your retirees can be met. Um don't make a huge dump into that. Um and then any remaining fund balance fund balance after stabilizing the fund could be transferred to the capital fund to pay for capital projects or downsize future borrowings. Um this is pretty standard what we see for communities that kind of have shrunk their OPED liabilities. Back 101 15 years ago, we saw major OPED liabilities pop up because we had that wave of retirees that were hired in the the mid 2000s that were given health insurance upon retirement and now they're dropping off um that liability and contracts

changed, etc., etc. Um, so we see many policies that make an um automatic dump into the capital fund really to help stabilize the borrowings, downsize the borrowings, and pay cash for projects 2027 and beyond. Some of the same things we talked about last time. What are our tax levy and rate objectives? How do we fund new services or initiatives? Or what are tolerable decreases to service levels to kind of meet what we can levy versus what we need to levy? um maximizing and stabilizing investment income um is a major source now that interest rates have kind of stabilized after COVID and increased um of revenue that we are seeing our clients utilize by um and you do also utilize by using Ellers's investment partners um prioritize capital projects and I'm going to skip over that one completely because I know you exhaustively have done that this year um and it shows in the planning of your future borrowings and ex um acceptable low levels of debt and then also using fund balance for one times items or purchases to help uh mitigate future levy issues. And so that's really all I have. So I'm happy to answer any questions. Um, I will prepare a slide deck that is everything we talked about updated to the 26 budget, the new borrowing plan, the new utility stuff, and I will provide that to you as well. So, you have kind of the frame of reference when we do this next year um to get an understanding of what was our baseline last year um and how do we move forward doing that? [clears throat]

Any questions? So, I think I'm looking around. I think that was a fire hose of information [laughter] and so it was a little tough to absorb but that I love the fact that it took 15 minutes. Sorry, I talk fast, but yeah, I'm happy to go back to anything or highlight or retouch on anything if there's addition. I got I just have a request. So, when you are doing that final deck, overexlain everything. Okay. Thank you. Well, sort of. I I've always thought that this activity was mainly for Jamie and Kelsey and Anna to to to utilize their services to figure out where we were. Um, it's great that the board understands where we're going to, but it's really for for them.

But yeah, but if someone askked me a question, I'd like to answer it intelligently. Yes, I will provide narrative to this um as to kind of our our methodology behind our projections, what does it mean, the utility pieces. I will definitely add more narrative that's on here um and provide it to you all so you have that. Thank you. Sorry, didn't want to step on.

Um, a couple questions. So, the first one, you use 4% for service inflation. Is that about what you're seeing? I actually was wondering if that's too low. Like the commodities one made sense and the the wages one, but is 4% kind of the long run services seem like they've been inflating faster? we have, but a lot of these services um understanding that they're smaller hits on our budget and or have some caps in annual increases built into them um kind of evens out if you look at printing and advertising versus it. Obviously, those are two very different demographics. One probably has a 1% and one probably has a 8%. So, it's such a large grouping. It kind of gets us to a median of what we can expect moving forward.

And like an incremental percent is pretty small. And this is compounding. So, it's 4% between 26 and 27. And then additional and additional. Yeah, it's a stacking. Yeah, makes sense. Um, on slide six, I just want to make sure I understand. So, is that number in the annual taxes 685800 home column? Is that a change yearover-year or is that the amount you're going to pay that year for the the borrowings captured here? That is the annual taxes to pay the debt service levy in total. So

So in 27 to pay the debt service, a a average home will pay $522 of their property tax levies dedicated to debt. And then the 503 in the next row, it's not on top of the 522, correct? It's a that's correct that year's total for this set of borrows. Correct. Okay.

What plays into this is the increase in tid out equalized value. Um the village has a extraordinary amount of economic appreciation. Not even talking about new construction, net new construction, any of that. And so you will see some pretty significant changes in equalized value. This is on a tidout basis. So nothing within the increment value within the TIDS. um and that helps drive down these impacts. So you [clears throat] while you'll actually see an increase in the debt service levy between 27 and 28, you see a decrease in the amount of taxes needed to pay for that because of the increase in equalized value. So bigger pool to spread essentially the same amount of money over

and this covers all three of the borrows in CF. Okay. It that I had a question about that in terms of we we we predict it's it's a relatively, you know, constant possibility that we borrow six, seven, eight million every two to three years. Um what's why why would you not put those possibilities in a chart like this? We absolutely could. Um it's actually $25 million a year for the next six years that you're borrowing all in utilities, everything. Yeah.

And so this is all general obligation debt. We absolutely could. It's a complete shot in the dark on interest rates, structure, term, cost of the actual project at that point in time. Um and so this is your current CIP that even you have on paper. Um, and so to kind of hone in on what that dollar amount would be because we did jump from kind of a $6 million CIP all of a sudden now we're 252525. Um, that it would be mostly a feudal effort because we'd be like, okay, we're going to throw a dart at we're going to spend x amount on roads and all that kind of stuff to develop that CIP. But you can get an understanding that one thing I know it's not going to be zero.

Yes. And no one is. But so you can get an understanding kind of just by looking here is that by taking on a $25 million debt issue in 2026, the tax rate for debt service would go from 20 or from 64 cents per thousand to 76 cents per thousand. So understanding taking $25 million on in debt though majority of it is paid for by the utilities is a 20 cent per thousand tax increase. Sorry, Sam.

No, no, that's a good question. That's kind of why I was asking. Um, for the abated debt capacity, too, when do you estimate that'll run out? Like, when will you start having to change staffing or change service? It seems like it's 28 would be the first year, but I wasn't sure if I was reading that right. Well, you have a beta deck capacity at least through 2050. So yeah, but I don't I think you're going to bump up against it before 2050, right? Because it's eventually you're going to utilize correct. So in 208 Mhm. Well, I can show you here that your abated debt capacity

$5 million. Then it bumps up to 6 and 29, 6.6 or 6.8 and 29, 6.6 and 30, and 6.6 and 31. And that's just with the debt that's planned through 2030. Yeah, but that's the capacity on the debt. When are we going to run out of levy items to use for that? If we're only using the capital items like the basically we don't want to get into a structural deficit. So if we're only pulling out the capital items, we could

sure understand that much better. Uh yeah, 28. This is a very quick analysis just by off of complete like what the uh expenditure line item was called that I could identify that there's baked in capital but I know just by practice there's baked in capital type items within every budget because computers can be deemed as capital monitors your run-of-the-mill office things that you wouldn't think since we replace them on a bannual or every three-year basis but when you're buying $100,000 of computers every third year um those are kind of the type of designations that we can start to get in um to deem things as capital. So, this was just a one look over. I thought I found about $500 to $600,000. So, yes, you will start to run out of capital funded baked into your levy things to pull out. Um and then that's when you still have to start those conversations of what are permissible service levels, how do we deliver services, how are we staffed? I think that's an important date for us to remember because this kind of moves from an academic exercise to an actual discussion of services or of really aggressive accounting

and I thought the last discussion I thought it was like 20289 where we

it was actually 26 our original projections showed a structural deficit in 26 27 28 and 29 the decisions you've made from your 26 budget have prolonged that to 2028 I'm showing that on projections you will have the ability to have a zero- sum game in 27. Um, and that you'll have some structural deficit in 28 to address. And so your your thoughtful decision-making processes in 26 have already pushed that can down the road. And that will continue to happen as we find efficiencies, as contracts change, as inflation hopefully slows down. Um, and so that's why I kind of wanted to stress this is a very conservative projection, but the horizon is in view. 28.

Yeah. Yeah. I 28 is my analysis as well. Thought in the budget. Okay. Um, sorry, one more and it might be for Jamie. How do we make like a regular contribution to the pension and post like the postretirement benefits or is it only the funds above 35%. Like when you say it's stabilized, what does that mean? Does that mean at our current ution every year. I know that 11,000. And you think it's stabilized at that level that you don't need to put your excess toward it? I think the current fund balance in that fund is over $100,000. It was like 109 as of fiscal year 24.

Yeah, I don't have a good answer off the top of my head. Um, we are due for an actuary study though early next year and even I was looking at our actuary study today and just some of the assumptions they have like that 85% of current employees will take retirey benefits. Kelsey and I think that's unlikely. So, I think we're going to have some more discussions with them this year as they work on it. So, I'd say I'll have a better answer early next year. That's that's fine. And the only reason I know off the top of my head that it's $11,000 is because I that's part of this 576 that I included in his Okay. cashed cap. So, I just looked at that today.

Okay. I think that's it. That's all I have. Thanks. and we don't need to make any decisions about the fund balance until we get that OPB study back. So, we can take a look at that. Um, it may make sense to bring back the policy earlier, but just not make a decision in terms of the transfer based on discussions with Kayla today when we go to do our um rating. It would be favorable um for us to have that updated policy. I think that was one of two comments we received back. Yes. the last time around

all of our communities receive fund balance comments because in a perfect world it would will be over 50% for the rating agencies. That's just not tolerable for tax property tax dependent communities in states like Wisconsin. Um and so but getting as close as possible. I mean I I think Ellers only has one client that's over 50% and we represent most communities in the state. And so um getting an understanding that one you're not alone. two, you can take action by simply adjusting a policy. I think your OPED study is going to tell you this is stabilized for like a five-year rolling period just based off of the reduction in health insurance premiums. One, because of your health insurance change, but to the decline in retirees taking health insurance um or the ability to take health insurance. And so I still think your policy should include some type of transfer to that to kind of get to where the actual study tells you you need to be, but not just dump it all there, then transfer the remaining amount of capital to offset capital projects.

So moving to the state health insurance over the long long term, does that stabilize it as well? Like is that a more predictable lower cost postretirement benefit? That's probably 20 years down the road. But yeah, help us in this. Just if you're thinking of policies long term and we're bumping up against a levy limit, we should probably change that policy because you want to start adding to that general fund. I mean, we had a surplus this year. It'll help you in future years, so I wouldn't wait another year to at least look at it. We should do it going into the 27th cycle. Yes. Yeah. Yep. And I mean their op study will be done this year or well I shouldn't say I keep thinking in 2026 it will be done in 206

in this budget this upcoming budget cycle. Absolutely. Makes sense. Okay. Thank you. Not a problem. Any other questions? Brian, you had a question about what it would take to get there and so she did put that dollar amount in. It's 651,000. Right. My only other question on that is is that incremental like by percentage a single percentage or is that excuse me would that be like is that a line item that says like 35% or 40% or 45? So that's your is it incrementally how how do how do they look at that when you go to borrow for

it's it's what it is at your last audit. They'll look at last audit and they'll ask questions during the rating call. How's the year going? Is there any unanticipated expenditures, any unanticipated revenues to get an understanding of how your year is going to end? But what we report to the RA rating agencies is your year end um fund balance as a whole of which it's uh almost 7.5 million um of which 400 or 4.5 million is undesated meaning liquid cash for you all to spend. Part of the 7 million is that OPED fund. It is a restricted or non-spendable um designation. But what they'll look at is what does your policy say? Your policy says 40% and we have a goal to get there over the next 5 years. That's good enough from them. That's what they want to hear.

Got it. You can't unless you have an outstanding year in which revenues are drastically underbudgeted. You're not going to do 651 in one year, right? Um but I think the goal would be to get there within five years. Got it. Thank you. And if I recall, our increase is like 300,000 this coming. That's correct. End of this year. So, is that 651 accounting for that 300 or not accounting? No. Okay. So, we're going to make a big chunk big a lot of headway at 651 as is as of year end 24. Okay.

We are planning to use that fund balance. We reduced our borrow for the health insurance search charge um by using those funds and that was in the the updated spreadsheet we sent over to Kayla. Okay. But you've made basically that change over the last four years. In 2021 you had an unassigned fund balance of just over four million and in 2024 is 4.5 million. Yeah. Five years is seems very attainable. Thank you. Okay. Any further questions? Any members of the public who'd like to weigh in on financial plans? No. All right. Thank you, Kayla.

Thank you, guys. Thank you. Um, all right. Next is discussion action on transfer of certain lands by adoption of resolution 3188. Actually, I have a question on that. It says 3188 um on our um motions sheet, but in the public hearing it says it's it's 1388. Correct. Yeah. What is it? The it Yeah, that's what confused me when I when I was trying to figure out. I was just looking for that number. It's 13. So, it's supposed to be 1388. 1388. Okay. I just want to double check.

So, our our agenda is has a both both of them say that. I was say the other one's 31 catch the agenda and the motions. Oh, yeah. Yeah, it should be 31, right? Okay. So, the public hearing was they both say 3188. 3188 and 3189. So, the public hearing agenda item has a transposition. It should have been 3188 and 3189. Okay. Yes. All right. Anyways, 3188. Let's talk about it.

So to provide a brief recap, um as you all this body approved the PDD back on October 6th for Sendex redevelopment. After that, uh Sundex as the petitioner requested that the village vacate a portion of adjacent public roadways. uh further consolidating the multiple parcels that they already own by Sundex into two lots which would allow for the approved for redevelopment and the legal mechanism to combine the lots as a certified survey map vacation of public roadways and and a quick claim deed on October uh 20th body sent the public hearing date for tonight this evening and referred the land conveyance to the plan commission on October 24th the Plan Commission recommended that the North Florida approve the certified survey map to combine the eight existing lots and adjacent public ways at Lake and Silver Spring drives into two lots and one outlot. That being the public's way and then the teal area. see [clears throat] area and then these are to be conveyed by the quick claim deed and then from the village to Sendex and then the outlot is to be conveyed to Sendex or to the village from Sendex. If I need to go into further detail, I can. Um, David Costlo with Grafe reviewed a draft of the CSM on behalf of the village prior to the plan commission meeting and found that it was technically acceptable, but requested um that two modifications occur. RA Smith

did those modifications and then he signed off on the revised version. Uh just the one piece and you don't have to come up with the exact number but for the purposes of informing the public um this is not a free transfer. Um does anybody recall the amount that that is being it's not being transferred from Sendex. It's more of a TID transfer to the general fund. Do you remember the number? $310,000.

$310,000. So this is not just us giving away land. It is there is a set value that um an a assessment firm came up with that number year or two ago. That's Yep. That that is correct. And that transfer is utilizing the increment that's being generated by Sendex as a result of the project. So as part of the development agreement. Yep.

It's just one of those things I want to make sure the public understands that this is not a land giveaway. Um it is being funded. [clears throat] Uh any further questions about number two, resolution 3188 hearing. Any members of the public interested in this subject? No. Then I would entertain motion number two. Is that number 3188? Okay. Yeah. Motion two. It's a little long-winded, but

I move the village board adopt resolution number 3188 to vacate a portion of public roadway, including certain portions of previously platted public roadway, which include a walkway along the north side of East Silver Spring and the east side of North Council Place. Two, a portion of the former North Council Place adjacent to a partial parcel owned by the village and identified as pin 165 0331 0 0. And three, a walkway along the southside parcel owned by the village and identified as pin 16. Oops. Oops. I walk side.

Sorry. Of I went backwards. Um, let me try again. a portion of the former North Council place adjacent to a parcel owned. Did I skip ahead? Read number Let's just start with number two.

Okay. Good lord, I'm so sorry. Okay. Two. A portion of the former north council place adjacent to a parcel owned by the village and identified as pin 1653310 0 0. Sorry. Three. A walkway along the south side of East Bumont Avenue causing those areas to revert back to the adjacent parcels as fe simple ownership. M Mr. Chair, could go ahead.

Mr. Chair, could I add something there? Um, yes. That I'd like to include with both two and three, and that is the board also authorizes the village president and village manager to take whatever actions are necessary to effectuate the transfers envisioned here. Lots of signatures. Yep. Uh, that was a friendly amendment from Jay. Do you accept to Jay? Do you accept that friendly amendment from our village? Of course. Okay. Do I hear a second? I'll second. I'll give that to I'll give it to Anna. Sure. Uh any further discussion hearing? None. All those in favor say I. I. Any opposed? Motion carries. Thank you.

All right. We'll now move on to write uh the discussion action on 3189 to approve a CSM um which has been approved by the plan commission a while ago. Uh so was that was in Anna's com commentary. Great. So now all we need is a motion number three.

And I'll make a motion. I motion that the village board adopt resolution 3189 to approve certified survey map and to combine the eight existing lot and adjacent public way including two parcels contributed by the village by quick claim deed at the northeast corner of Lake and Silver Spring Drive. consolidating certain parcels owned by Sendex and Investments LLC at Silver Spring and Lake Drive into two lots and an outlet dedicated to the village as shown in the meeting packet that will allow for the redevelopment of the [clears throat] existing site in addition to our friendly amendment of the village attorney. Yes. Is there a second? Second.

Thank you, Sam. Any further discussion? Hearing none, all those in favor say I. I. I.

Any opposed? Motion carries. All right, that is it for our public items. We will now need to move into close session. If someone could make that motion, please. I move that the board committee in close session pursuant to Wisconsin State Statute 19851E deliberating or negotiating the purchase of public property investing of public funds conducting other specified business whether competitive and or bargaining reasons require a closed session. Specifically regarding negotiation on intergovernmental agreement with the White Space School District pursuant to 19851C uh considering employment promotion compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility specifically writing employee compensation evaluation of the village manager.

Do I hear a second? Second. Uh that was Anna. Uh any further discussion hearing none. All those in favor say I. I. Any opposed? Motion carries. We are now in close session and that means that our friendly neighborhood US government students maybe. Yes. Excellent. Glad you stuck around. Thanks, Joe. It was good to see you. Yes. Miss you on the We missed you on the plan commission. Oh, Joe's on a planning. No, he jumped. I suppose he's allowed and we have stopped the recording. Chief, I just texted you. You couldn't stay away. Close

session. All right, we have It is 8:03. We've come back into open session. Uh, we have discussed what we needed to and now we would like to move to adjourn. Thank you. Do I hear a second? Second. Thank you, Sam. All those in favor say I. Any opposed? Motion carries. Have a great December everybody.