City Commission - Special Meeting

D City Commission special call meeting. Today is Tuesday, April the 28th, 2026 and it's 1:00 p.m. and uh see like we just left a few hours ago, but thanks for coming back and we're going to have a another budget presentation. Uh Mr. city manag.

Thank you. Thank you, mayor, commissioners. We will start and then we will allow uh Lee to go through the presentation. What I would like to begin with is u an active uh remote that functions well and all the things that go along with it. I think the battery is dead in it. Yeah. No,

I was going the wrong direction. The um this is a reminder of where we're at in the budget process. We have a little bit of a gap. We have a a bunch of things that would would conflict in the month of May with possible meeting dates. So we we uh um in talking about it when we were doing our budget calendar, we felt like that um we normally uh defer certain things uh to to revisit our revenue for example after we get our April numbers in. Um and so this there is a gap between today's meeting and the next budget meeting which is really works out fine. We are a little bit ahead of schedule in terms of our production. we are um feel like we could produce a budget ordinance. Now uh that that achieves what the minimum objectives are. the the thing that we questioned last time basically was the staffing uh as you'll recall. We'll bring your attention back to that for a moment, but we discussed whether or not you can add staff and and what the collective wisdom to to remind us all was is that we are recommending we either uh we get these revised revenue numbers if at all and andor wait till December and then we can all that conversation then have a budget amendment if that's the direction you all want to go. staff is more than willing to do that the intermediate work when you're doing a budget amendment to accommodate that if that's what y'all choose to do. Notwithstanding, that's where we're at today. Our next budget meeting will be June 2nd and and we will be moving towards wrapping up the budget then so long as you all don't have any any changes that you you send out our way over the next month. Okay. And so Lee, I'm going to give you the keys and you drive the car. I did have to get my I took the permit test twice, so fair warning. Fair

warning. Um, I did want to point out just so I heard the feedback on your large spreadsheets and your page numbers are bigger. Um so compared to compared to our last meeting where we presented the large spreadsheets um this is your total current requested budget. Um the updates include adding in the individual agency um recommendations on page um 10 along with adding um your shared agency recommendations and just citywide as a budget. It includes a cola plus a step adjustment for all uh personnel. It includes the um health insurance proposal that Randy brought to you all in March. It also includes your salary adjustments for 911 and your reclassification of your police detective and your HR clerk. Uh total proposed appropriations which are your budgeted expenses for the um citywide are 72 million796,834 very similar to prior fiscal year at 74 million. Um, if you all remember, we did have in fiscal 2526, the current budget year, a $22 million indoor aquatic, indoor wreck um proposal to help continue that discussion. We didn't include that specific item this year because we instead included some very specific plan um dollars which are significantly lower. However, as a total, the utility fund has quite a bit going on in this upcoming year because

of some known projects that are in progress and are started and uh funding that we have from some state and federal agencies. So um as a baseline that um total appropriation number is fairly similar in total and for operationally your general fund revenues. We'll start there. Wrong page. Wrong page. Yeah. Oh, my slides are out of Yeah, no, we're great. Um, my my my slides are my pages are out of order. I'm good. Uh, total general fund revenues are $24,594,970. Uh, this did not change from any of our previous meetings. Like Earl said, we're going to go through the process over the next uh month. after these um April the end of this April quarter, the funds come in and we can reassess and determine whether it is um a good idea for us to recommend additional staffing or not. Um and we'll bring those updated projections back at the end of um at the next budget meeting in June. So, your um taxes and fees Property taxes are budgeted in at 2.5 million. Your license and fees, which includes your occupational license, which is your payroll tax, your net profits, your insurance premiums, and your alcohol tax at 19.8 million. Penalties and forfeitures at 9,500. Service revenue, which is com comprised

of the agreements we have with other entities. um for instance the fiscal court or junction city and parable for our 911 service at 978,000 other recurring revenue at 79 719,000 and your intergovernmental revenue um of 440,000 um I want to make a note it does look when you compare actuals of 2025 to the budget of 2024 to our requested budget it's it's going down largely this is due to grants grants um and things that are not every year items. Um FIS actuals of 2025 was was the remainder of our ARPA funds that we spent um in the general fund. We spent this for our contribution with the EDA. And last in the current budget year, we had a couple more grants than we have anticipated in the general fund than we do in the upcoming year. Uh, just as a reminder, when we budget, we base that off of our compensating rate for property taxes. Your current rate for your occupational license fee, your payroll tax is at 1.9%. Net profit is at 1.75%. Your insurance premium tax rate is at 8% for everything except for Inland Marine at 4% and your ABC rate is at 5%. Total expenses for the general funds are 27,652,55. We did maintain a operating surplus of $466, which is the difference between your

revenues that we're anticipating and our operating expenses. So those recurring things that we need to maintain the building and maintain personnel. Uh we have capital in our fiscal 20 um seven budget for the general fund of 882,000. And we do have a couple of one-time um appropriations which are not recurring and not um considered as operational. Um, we haven't talked much about these in the budget process, but we did include these um in your your current draft is an additional 50,000 for um potentially to be allocated for the 250th as that um celebration spans fiscal year that spending for it does along with a additional $50,000 for a potential economic development project that comes your way. Um, we want to give you all the flexibility to receive a proposal from our partner agencies or something that I don't Ear or all hasn't heard this, but in case Melanie has something that comes up that requires additional beyond what's routine spending that we have flexibility for that for economic development. So there's really no changes other than those two items from our last meeting. Um so like I said, your communications includes the adjustment to um the market adjustment for 911 salaries. Uh the police department includes a reclass for a police detective. HR um in the legislative department includes the reclass for the HR clerk. um the transfers to other funds. It does appear visually in this um third to last column

that your dark dark purple is significantly higher than prior years. That is due to the capital that we will be spending in the parking uh I'm sorry, the park and wreck fund. Um because we had several items come up with grants um and some projects that the county is uh cooperating with us on our our transfer for capital projects to the park and recreation fund is a little higher than it has been in the last few years. So, since we're going to go through all the funds and kind of how much we've budgeted, revenues and expenses, I'll keep going through these. If you all have questions, please stop me, let me know. We can always go back and look at the details, but uh on a fine level detail, not not many things have have changed from our last um meeting. You have several minor governmental funds. Minor is a accounting descriptor, so it's not, you know, not that they're not significant. Um, your municipal aid funds, your revenues, um, are budgeted at 765,000, expenses at 860,000. Your revenues are derived from your state road aid, which is approximately 350,000 each year. That's on page 12 of your large spreadsheets. We are also anticipating $400,000 with our Boffman Avenue grant. Um we've budgeted $500,000 for that grant itself. Um we have a $100,000 contribution from the city. We've also included some additional funds in um

the the municipal aid to help support um some EDA road work. Um in total expenses are 860,000. Your opioid settlement fund, we currently don't have any expenses budgeted um for that fund. total revenues at $61,051. Um that's based on the settlement um information that I get each year. Um as Earl talked about in his city manager reports last night, um the Boil County Homeless Coalition has given us a very broad proposal and we're working through that with them to potentially recommend some um spending from our opioid settlement. Um so hopefully by fiscal 27 we have have spent some of those funds. Your police safety fund um is how we track our highway safety grant that comes from the Kentucky Transportation Cabinet and is directly related to um safe secure driving. Um it's typically a we reimbursement of um the personnel cost of highway safety um or drug forfeiture funds. Um the funds in from that uh 75,0007500 is your revenue. We budget the expense of 7500 as well. Typically we spend what we get in or thereabouts. um those are restricted to drug enforcement, the use of those funds. Um those funds come into us from the circuit court clerk um after a process um that they're released to us. Our streetscapes fund is a um what's

considered a capital projects fund that is strictly used for the tracking of expenses related to um improvements and maintenance of our downtown um zone. Um the revenue in of $50,000 is a transfer from our general fund. Um and the expenses are maintenance and or expected maintenance and repair of any downtown um sidewalk um repairs. Park and Recreation Revenues for Park and Recreation are on page 17 of your large spreadsheet. We have in total um 4,23,833 I'm sorry, 533 in your park and recreation fund. Um the largest portion of that is from our general fund. you have $3,48,028 uh as a transfer from your general fund. When you look at your large spreadsheet, we do break that into transfers for operations and transfers for capital projects. So for operations to keep um services going as they are. Uh we are anticipating 973,000 and for capital 2,75,000. We are also anticipating service revenue which um includes rentals at our various facilities of 125,000 parks revenue which are your program fees your facility use fees and concession of 390,000 um or other recurring revenue which is

fairly minor at 17,000 does include some non-program related concessions at Jenny Rogers um interest um other miscellaneous items. Uh we are anticipating sponsorships of 42,500 and your intergovernmental revenue which includes um your uh park and wreck contribution from the boil county fiscal court of 400 and $400,955. Um they are also in this current budget year uh supporting parks capital in with $1.4 million um plus a investment into into pickle ball. Um I will aster that 1.4 number with um a big portion of that is uh geared toward Alum Springs Bike Park. Um but our other shared projects they are splitting with us 5050 whereas the Alm Springs bike park they are currently um taking the lead um in that for uh financial purposes.

Can I ask quick question? Um seems to me that I don't know much about it but sponsorships at 425 that just seems low. Do we how how hard do we try to obtain sponsorships and that kind of thing? Should we be doing more of that or is that just I know we don't have enough people probably to do it justice, but we probably h have not tried to commercialize the parks and recck system to the extent other people have. Um there's an argu argument that could be made either direction. Um

the uh Tommy is we I do have in my computer to look at the uh his revised sponsorship advertisement and things. It is something that we can he the the purpose with this current initiative will be the scoreboards and the in the baseball fields etc. Um it is something that we could probably do more of but but it is just not something that we've like tried to press into our private sector. Yeah.

You I was just going to say you do notice your annual actual 25 is at 66 and then we're only budgeting 425. Part of that was in 2025. We um had a lot of one-time sponsors for Jenny Rogers for their room outfitting and things like that.

Um and so like the scoreboards where we buy one set of scoreboards for the next 10 to 15 or longer years. Um I believe his his suggestion is some naming rights for those on those scoreboards. And so that would essentially be a one-time um influx of sponsorships. Um so there's some potential for that kind of thing to increase. I think also our normal like Earl said that's that's something we've not yet pursued too hardly. Open to working with Tommy on Yeah.

reviewing that and and what can we do to I don't know what what opportunities are out there. Yeah. Some of some of your leagues seek sponsors for their t-shirts, for example, to offset some of those cost. And so we, you know, we've tried to we've just not really exploited that as the single point for sponsorship for all activities in the park.

Uh but it is something we've talked a lot we've we've talked about. And the bulk bulk of your sponsorships are team jerseys and banners at the facilities. Parks expenses. In total for the year, um we are budgeting $4,23,533. Um we do try to um budget parks as a um zero budget um so that for all funds coming in we um or all funds going out we have funds coming in. So you do have minor debt service in the parks um fund a few vehicles through our fleet program along with the equipment lease that we did earlier this year. Your Millennium Park budget is 1,16,683. Fitness center is at $466,000. Your pool at 92,000. Community parks at 23. Jenny Rogers at 267,000. And we had talked about this briefly early earlier in the budget process. We have created a individual department for the Pine Knob Trail Mountain Bike Park um in total of 64,000 along with capital of 2,75,000 uh dollars. I've listed out on your PowerPoint the individual projects that we are funding this uh current year. Um as as we discussed the Alum Springs Park, that is our um allocation of 75,000. Um the fiscal court I believe is is spending closer to 830,000

on that. Um Butler Park um does have a grant. Um the indoor aquatics we we built in those plan dollars so that we could move forward with a proforma. Um that is kind of the next step um in actualizing that project as a whole. Um updating the Jenny Rogers parking lot. We um we did a gravel lot recently, but this would be some additional work and paving. Um the Lexington Avenue uh park playground surface needs some updates. the Millennium Park drinking fountains, performance pavilion, and skate park um would be a shared project with the county along with a grant for the performance pavilion, some updated park signage throughout our park system, uh lighting at the pickle ball courts and the Jackson Park splash pad, which we also have a grant for.

We'd like to footnote some of those. the um lighting at the pickle ball courts. That's really the shade structure for the for the third set of courts. Remember, we've talked about them bu building nine. Um the first two will be lit with the base contract. The 165 provides a shade structure for the final three with which has lighting under that shade structure. would point out the county did ask um for some additional influence in the uh Alam Springs Mount Bike Park investment. Um our recommendation there is there there is so many things there that is loosely defined. Um what what we suggested to the county was is that uh that when when the trail itself will require seasoning. So once they build the trail that will need to sit there a little bit and age in and before we let a lot of traffic on it. It is our hope that we get some clarity in where we're going to park the facility access where that will be over the next six six eight months um including uh there you know any anything from an access perspective that's associated with that whether it's easements or whatever until you really know how you're going to access it. You know, we we didn't suggest pre-planning what the budget for that would look like. Partly because just the the nature of our budget is different than the nature of their their budget. In the year we're in, their election year, they've got restrictions on how they spend money. So, it's important for them to get line items in with allocations to it. For us, once you once we get to a good decision, I'd like to encourage the county with this statement. Once we get to a good decision, we can recommend to you guys then what that investment would look like. And it's certainly it's not as incumbent uh upon you guys to make that decision early without that fully

vetted per se, right? So, um I would just like to to say that really to encourage the county's uh vision and and continuing to work on that. I know parks has a lot going on. Do you all have any thoughts or questions about parks before we move forward?

I'm glad they got a lot going on. Okay. Our cemetery fund revenues are budgeted at $48,259. that is comprised of a general fund transfer along with um cemetery lot sales and um fees for the um burials which we call cemetery job work um along with some minor interest uh expenses in total $430,259. We do have a $25,000 um capital improvement for the West Property Fence replacement. Um that'll bring your fund fund balance down slightly. Other than that, um the cemetery does have debt service. We don't talk about it a lot. Um but it has a a vehicle or two through our fleet program. It's very minor. It's a thousand $1,11 for the current year. Um, other than that, no significant activity in the cemetery fund in the current year. Our storm water fund, which is on page 24 of your large spreadsheets, uh, we are budgeted at $742,500 in uh, revenues. This is 730,000 in operating fees. If you all remember when Josh um talked about this several meetings ago back in March, um he'll be bringing back an um updated ordinance to um um update the rate with COLA um for to support the fund and total expenses are $1,242,500.

Um that big gap is primarily due to the capital um which would spend down your fund balance of $500,000 which includes um a improvement at your East Main SL in Kentucky um drainage and then a mini excavator. Um you do have some debt service in your uh stormwater funds. You do have some fleet vehicles. You also do have some traditional bonds. Um those um are set to uh be fully paid by the end uh by 2030 I believe. Um

are they revenue bonds or

um it was not it was a general obligation bond that I don't honest I think I'm trying to think off the top of my head. We have quite a few what the original project was. is I know it was refunded in 2018 or 2020 to take advantage of a better interest rate. Um, so I know it's it's only got a few years left on its its uh full debt schedule. So your garbage fund, this um is on page 25. This is probably the most significant change by dollar compared to what we looked at last week. U based on Josh and Earl's um verbal recommendation um for our garbage service, we have updated your current year estimates for um revenue and expenses. Um in total we are budgeting $1,411,710 uh 1.36 of which is based on fees for service and that would be uh based on the recommendation of the city does base billing for one can and extras are um build and obtained directly through Republic. uh total expenses at $1,45,735. That does include 45,000 which is um uh based on an agreement directly with the fiscal court to support um recycling and um their waste management program.

your utility fund. Total revenues in the utility funds are budgeted at $36,931,770. Um this is significantly higher than last fiscal year at um 17 million but again that's due to the um uh capital um funding that we have secured our base um fees for operating. You're budgeted at 6,683,619 for water related fees and 6,442,229 for sewer related fees and 243,000 just for some other miscellaneous things. Uh these numbers do include your 2.7% cola um which will be adjusted on rates um in the upcoming fiscal year. This is done annually by ordinance. Um and as we mentioned our intergovernmental revenue and loan proceeds are all related to capital projects. Some of them are grants, some of them are lowinterest loans. your utility fund expenses. In total, we have 37,780 81,127. This does include 1.6 6 million for you utility for your utility administration, 3 million for your water treatment plant, 1.5 for your water distribution, 1.7 for your wastewater treatment plant, 976,000 for your sewer collection rehab, 134,000 for your peril um expenses. You have a non-EP departmental um expense of

958,000, debt service of 3,223,000, and then your capital of 24,412,000. Um Marshall has a ton of projects, so we didn't list those individually. They haven't changed from your capital spreadsheet. Um so what we've done is kind of outlined how that 24 million is funded. Um, for the year you have KIA grants and lowinterest loans totaling 7.5 million. You have 2.5 million for from your Boil County ARPA funds um based on an agreement with the county to do some projects in parable and junction. You have um some line item grants from the Kentucky legislature of 12.8 million. um a potential bond issuance of 400,000 and utility fund reserves for some operate what we call operating capital routine items that we we handle um annually or as they come up of 1.17 million. Uh when you look at your operating budget uh operating revenues versus your operating capitals for the utility fund, you have an operating surplus of $281.

So your final two budgeted funds are some minor enterprise funds, your museum fund and your parking fund. your museum funds. Uh total revenues are budgeted at $66,980. Museum is expenses are 66980. Uh we do like to keep this a a net zero when we can for operations. Um there's no significant activity to report for the museum fund. This is routine operations for the upcoming year. Um that is on page 34 of your large spreadsheets. Um the the um the most significant source of its revenue though is a general fund transfer. Your parking expenses um are budgeted at $490,643. Revenues at $445,666,000. You have 50,000. The gap there is your $50,000 for some parking um concrete repairs at the garage. Um routine operations of um your parking enforcement along with some debt service in this um fund uh just to build and maintain the parking garage over the years. I believe all of that debt service is scheduled to um finalize in 2038. Um the revenues from this fund are supported with the general funds. Um however, the bulk of its revenue does come from rents from the parking garage and the lots along with some interest and parking fines.

How old is parking garage? It was started in ' 05, finished in 07 and opened. So we had like a 30 year pays off the 37 2037. So that it's in it's in good shape. If you go through and look at it, I think the adding the glass has really given you an opportunity to to to reach that 37y year mark with the elevator intact

without any any additional repairs on that. Um, we've uh we do have some concrete work that's got to be done. Josh is pointing that out, but other than that, the the structure is is in in significantly good condition. Um, and you're going to you're going to get to that 37year mark without doing any major capital unless something unforeseen happens. you would you would properly um look at the structure in 2037 for you know a minor renovation project. Uh just something to tidy up any any weaknesses that that would get you through like a 10 20 year projection. So, you would want to, you know, I'm not really sure what it would be at this time, but but I think you would do a structural review of the the building in in about 2035 and try to figure out what to do, if any. So, we've went through kind of all of our numbers at a at a fast pace just because we've we've not made any significant changes since our last meeting. And this is really after our last meeting, we affirmed your recommendations for or our recommendations for community and shared agencies and um kind of affirmed our uh plan to revise our year-end projections as as our April um revenue winds up over the next month. So there's not a lot there's not a lot of changes and differences. So this is just kind of an opportunity for you all to ask about something that maybe you forgot about at one of our previous meetings or something that's just still on your mind. Um

um but there's not a lot of new things to talk about today. Do we have any questions or comments from the commissioners? Um, so what do we have left to do before we So when we come back June June 2nd, uh, myself and Earl are going to look at our revenue numbers. If I haven't told anybody, but if I can convince all of our managers, we'll try to get an updated expense projection as well, just based on what they've spent

between now, between February and now. um some months if it if winter lasts a lot longer. Sometimes we have way more expenses for certain things than others, but we've had a fairly mild one. So, um, we'll try to get both of those things updated, but we will for sure have an updated revenue projections and that'll allow us to either revise our recommendation for personnel and say, "Okay, we are comfortable now recommending that you do additional police and fire hiring." um or maybe it confirms our current recommendation, but we'll just we'll at the end of the day, it's ultimately your all's budget and so we'll be able to provide that information to you, but along with our recommendation. Um but we're hoping on the January 2nd meeting, we would have a um another full draft presentation along with a confirmation that we're ready to move forward with our first reading of our ordinance. questions or comments.

I just wanted to tell you I appreciate you being so thorough. Um, all the questions I had you actually answered during the presentation. So, thank you.

I hate to give her credit, but she does a good job. most important thing is is just when you go through when you go through the overall operation of the bit city fiscally there's nothing on fire today right like we are thankful that that revenues have sustained another budget cycle reserves are sustaining our operating capital today um the the biggest looming questions over the next couple years will continue to be any any long-term decision in parks and recreation, any any uh long-term investment in new facilities that that are necessary for the police and fire. Um we will work in this budget cycle over the next 12 months to start to to bring a little bit of texture to what those two projects might look like. And uh so we we'll continue to press those. Um but overall uh in terms of health of the city um you're the city of Danville is financially secure today

right now. We do have long-term concerns, long-term obligations as you should, but it's it's you're in a good fiscal position. Fund balance is good. Appreciate everybody's work. is

we will have um hopefully remember last year we we had uh our debt consultant come in and make a presentation about our debt service. We're trying to get that scheduled. That's really the only thing and and also uh she and I talked about uh cash analysis. Remember uh last time we did did the cash analysis for you. We've not done those two things yet, but hopefully over the next month, we'll we'll provide an opportunity to to summarize those things for you. Just for the record, those will be documents that we would include in our budget book.

We have met with our debt consultant. We have met with them. We do know that there's some some replacement debt that's got to occur over the next 12 months. U but um we could have made that presence just literally getting them scheduled to be here. And I think as I think about long-term items, I look at police chief, the fire chief, I look at city hall, I look at parks and wreck. Those are all very important items to the whole community. So we we're doing a great job of trying to stay ahead of those and do some long range planning for station number three,

police department expansion, water, more water opportunities for recreational facilities. We do need growth and revenue to sustain us long term just like just like every city does. And and so when I say that we're in good condition, we're talking about the fiscal year we're in. I'm not necessarily looking out 10 years per se because there's so many things unknown.

But we our our focus is economic vitality. I think the budget achieves that in the way it's sitting and I think there's a lot of emphasis on providing for increased uh economic activity which should theoretically sustain both the city and county long term if that continues to develop in a positive way.

Any other comments or questions? Don, I know you're watching us, so send yours via text to somebody ASAP. Otherwise, I'd like to entertain a motion to adjourn. I'll move to adjourn. I'll second it. Well, thank you, ladies. All those in favor say I. I. Those opposed