City Council - Regular Meeting

Okay, we'll go ahead and call the meeting to order. And I will say with pleasure, please join us.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. Heavenly Father, thank you for this time as we build next year's budget. I just pray you'd honor the work and the transparency and Questions that our community has are easily sought out. Just leave with us as we finish this up.

This is in Jesus' name. Amen.

take it away ma'am it's your show um you all should have received your updated budget packet materials at council meeting this week and in those in that packet were an updated budget calendar which is almost completed the sections that we're going to go through tonight and the funds that we'll we'll be talking about tonight and you also received a packet and i didn't Put it in your box. Here's our state budget forms. They are complete as of all of the budgets that we put together. They're in here. And I'll just kind of briefly go through each single line one by one at the end of my presentation. I didn't even say a word. My head just started on the swivel. I don't know why. Congratulations, we've made it this far. This is our fourth and final, unless we deem we need to have some more meetings in the month of August. This is our final meeting to go over the final remaining funds. We talked about the capital improvement fund, equipment reserve fund, our other small funds. And then we'll talk about our final wrap up and our next step. So most of the items that you're gonna see tonight that are gonna flow through these two major funds, Capital Improvement Fund, the Equipment Reserve Fund, are things you've already seen before. So most things will not be a shock to anybody. If it is, then we'll talk about it. So we'll get started with the Capital Improvement Fund. This fund is kind of our reserve fund that we put dollars into each year. Usually through our interest earnings, that's kind of been the majority of the funds that come in this fund. But this fund has been kind of a catch-all. for a lot of different purposes. Prior to me coming on there were developer projects happening in this fund and we would get bond temp notes that would go into here and then we would you know do those developer projects out of this fund but it's kind of murky it's kind of kind of hard for us to tell what our final balance was for city dollars that were available so Through processes we've been eliminating developer projects out of this fund when we got new ones in. And so that's one difference that's kind of happened in this fund. The presentation tonight really only reflects city projects. I want to keep that totally separate because if we were murkering it up with capital projects from the developer projects and grant projects that just come in and out, it would really convolute things. It wouldn't make it very clear. I think at the end of the day what we want to know is how many dollars is left over for us to use for city funds and that's how I've stripped this fund out so you can see that. There are two remaining, which I think I talked about it on Monday night, there are two remaining tent notes in this fund, Arbor Creek Phase 3 and Bridger and Maple. Those two will be coming out. Actually, I lied. There's a couple more still hanging around in there. So next year, they'll all be out of there. So pretty soon, it'll only be city dollars in this bucket of money. There are also times when we receive dollars in for, let's say, grant funds like the MIH grant that we receive and we just pass on to developers. It comes into here and goes right back out of this fund together. So they just basically net out. So again, I didn't include those in there just because it's just so, it would make it harder to understand and it wouldn't present fairly. So, I'm gonna present 2026 and 2027. current and next year's budget. This fund kind of operates year by year. It's kind of really hard to project out. I like to show where our fund balance is and where it relates to our policy, but just projecting it out, it's so volatile each year, determining what we want to use the dollars for, what our interest looks like, and other things like that. projecting out really doesn't make a lot of sense in this fund and with the equipment reserve fund too so just just letting you know they function just a little bit differently than the rest of our funds that we have we um deposit a good portion or a very good portion of our interest income into this fund in 2026 we're projected to have about 1.4 million dollars of interest income so all of the revenue all of the cash that we hold for developer projects and our cash for our portion of the capital improvement fund gets a component of the interest income. So that's why this fund brings in so many dollars for interest income. Just a reminder, when I book interest every month, it's based on the ending fund balance at that point in time of the month, based on our interest earnings for that month. So, you know, general fund, if they've got $4 million, and Water and Sewer has $2 million, and, you know, so on and so forth, you know, this one has $40 million, you know, out of our total cash portfolio, so it gets the most allocation of interest income. So... 2027, I project that we'll probably get it, you know, it's coming down, trying to project conservatively. If we have a lot more projects that we cash flow and they're sitting in our bank account, you know, it may be a little bit higher than that, but I wanted to budget conservatively at a million dollars, so it should be better, but again, we want to operate conservatively. Transfers from the water fund, we are putting $36,000 back into capital improvement fund for dollars that the water fund borrowed basically last year. So sometimes we do that if we feel like it's a need. We probably didn't need to do that. This fund's really pretty healthy as you're going to see, but it's a good mechanism to do. Total revenue overall this year about 1.4 million. Next year estimating about 1 million. So we're not having any transfers into this fund from any of the other funds. So I wanted to highlight the projects we're doing just so we remember because it's really important to remember what we plan to do in 2026. These are the projects that are in progress. Our SCADA dollars from our bond financing are held within this fund. We have about $583,000 of funds left on that project, not saying we're gonna use it all, but some of that money is interest that we borrowed that we held there. But I just went ahead and zeroed out SCADA, pretending like we're gonna use it all, but that's where we are. I always put in an emergency allocation, I'm just scared. I want to make sure we've got enough dollars in this fund if we're going to spend dollars. So we have a $250,000 emergency allocation. You'll see that again in 2027. The Goddard Galleria match for our grant, we need to make sure we're accounting for those dollars coming out as well. I think that project's going to wrap up pretty soon. I just want to make sure. I mean, that was the impression that we would pay $200,000 towards that $2 million grant that we got. So I'm just counting for those dollars there. Our Everly Trails, our new well, $153,000. That was the component that you guys talked about Monday night with Craig and our Everly Trails projects that we're doing. Parking lot, land, construction. So this one kind of popped up when we bought the land from Randy. We need to allocate some dollars. That's probably going to go into that. That hasn't been set yet, really. I just put some dollars. That may be high. Probably is high, but I don't know. I just want to make sure we've got some dollars set aside for that project when we get ready to do it.

the police facility we already had a question about that the other night when we were walking out you said oh yeah oh about the parking lot?

yeah just the timing yeah it is Carlin is working on the constructible documents and once we have those Jason will get things on it and we'll put our own thing together so we can do it in house I think when you include engineering and surveying, I don't have any concerns that that number is going to be too high. We're very hopeful that we'll be doing that by the end of summer, early fall, at any rate by the end of the year before it gets too cold for concrete. If the timeline gets a little more refined, we'll report to you guys. And then since you've given me the floor, maybe I took it. The SCADA system project is very close to being finished. They're going through their final punch list based on the most recent update that Jason gave me. You guys may remember some reports of some low water pressure. We kind of shared with you what that was about. But because of the new SCADA system, they were able to correct that pretty quickly. Otherwise, it could have been a few weeks with the low water pressure. So that is almost done. Gallery to Galleria is done. We're just, we've got to finalize the accounting on it.

So the SCADA thing almost in August? Oh, yeah. Something of that nature, yeah.

I've already seen an email saying that you finished up, and I'm going to start working. So, yeah, it was something of that nature in our office.

Because you anticipated my answer to the question. It's super close, but I was in that email, too.

They're just wrapping up a couple of workstations from what I know.

Any other questions when we're done chatting? I have a question.

Emergency allocation, I'm curious, last year or even so far this year, have you had any? No, not really. We're not super sensitive. You know, I mean, you could...

The $250,000 that I set aside is really just kind of my placeholder to make sure that if something really major happened, you know, Duke comes to me and says, water tower, he's turning $2,000 worth of my work.

You know, we would...

So, emergency, other allocation, it's kind of just a placeholder. To me,

I kind of think in the back of my head, this parking lot that wasn't budgeted before for $35,000 really should offset some of that. You know, in the back of my mind, it isn't, we should just go ahead and spend all these things and have that. But really, at the end of the day, I'd like to net that together. You know what I mean? Things that aren't budgeted for, that kind of pop up. The capital improvement fund and the equipment reserve fund and all of our other reserve funds are not bound by budget authority. We adopt a budget and we try to live by it, but for the state purposes, we don't have to. We just cannot go below zero. That's really the only law we can't break. And so even on the state budget forms, when you see them on the very back page, It reports last year's actual data, not even next year's budgeted stuff. So it's a year behind, shows what you spent, what came in and came out, and then they operate just a little bit differently. But to what you're trying to say, that $250,000 kind of set aside, I'm okay with the $35,000 coming to me because I know that I have that there to kind of... Now, right, hopefully we don't have a $250,000 emergency and we have all of these other things happen, you know, then we might need to kind of make some choices.

I feel like we're pretty good at a lot of our funds, though, so, I mean, we hope that doesn't happen, but, yeah. Right.

The police facility, this is something we've talked about already, the preliminary cost and staffing study that we're doing right now. That's what we're doing this year. City Hall office build out, that $25,000, that's kind of a placeholder if we need to decide to build office space or put something together for more staff throughout the year. Again, that's something that we may do. If we don't do it this year, we may do it next year. And if we don't do it this year, the dollars are still in the bucket to, you know, use that. The salt sand building, we've had a little bit, a few dollars come in to complete that project this year. You know, that was actually a last year project and those are just costs that have rolled through for this year. Road striking and marking, that was a high dollar ticket item. I didn't want to take it out of the street fund because that one, you know, is always right on the edge. So that's kind of almost an emergency thing that we needed to do that we needed to take care of. So we've done that this year. And then city well fencing was something that we did budget for last year and that's been taken care of. So that's our 2026 project. I don't think we planned anything. to my knowledge, anymore through 2026. So if we move on to 2027, again, a lot of these you've seen, and I tried to indicate if they're on our CIP, hopefully I've got them all on there, but our police facility, engineering and design, we budgeted $750,000 for that. Our emergency allocation, of course, $250,000. Our Means Park playground upgrade for $150,000. This was one where it was on our 10-year CIP and early on I kind of thought about pushing it off and not doing it, maybe moving it out to 28 because we were doing all the work on the pool and we kind of felt like, well, maybe we don't need to do this. But after I ran the numbers on this fund, I thought, why not? Let's let's mark this off of our off of our cip so we had room so i brought it back on so if y'all are still in agreeance with that we're going to just move forward with that and keep that on on schedule for 2027. and i know i'm sorry i know that was loosely talked about but what exactly are you i feel like the plan of those changed a few times i don't know the plan okay um you have the floor

The playground upgrades could really be a myriad of things, but we're going to first get the current equipment excavated and bring the site up to grade. There's some drainage issues over there you guys know. We fixed a lot of that a couple years ago. but put in some safety servicing and I always thought maybe we could do something similar to the addition we did at linear park last year just kind of knowing what that costs so it would be pretty small but it would be something We're also working through a bit of an issue over at the Rustic Creek Park. We're getting leveraged a little bit, so we might put a swing set and maybe one other thing over there to become the leverage so we can utilize them. public infrastructure there for another development public infrastructure we actually possibly contributed to that you would think we could utilize but i've been assured multiple times in multiple ways the developer doesn't have a lot to do that so but i think micah has done a good job of hiring that out and so we kind of have a path forward on that so we've got to solve this project okay we're talking pretty small dollars but if we do which i think we will do something we'll probably So yeah, I think it's something similar in size and scope to what we did with the linear part play edition a year and a half ago or so.

Yeah, we did like a zero and three tables from the branch, things like that.

Not gazebo, but we'll have picnic tables and benches and stuff. So that'll kind of complement what's going on with it.

Thank you sir. Yep.

City pool in front of us, about $72,000 is going to come out of this fund for the sandblasting and painting and redoing of that part of the pool. If you recall, the $60,000 actually is going to come out of the equipment reserve, so we have another component of that for the filter and pump situation. let's see here senior center strategic plan um we are going to budget fifty thousand dollars for that project which we talked about when we went through the general fund um we have a placeholder here for other consulting and planning costs sometimes we just don't know what those costs are going to be And that's actually kind of, I want to say that's probably going to be kind of light, typically knowing what we do each year. But, you know, Craig and I kind of put our heads together and with all the things that we have going on, we're just going to put that dollar there for now, shall we? There may be a change to that. But for now, that's what we're going to hold it at.

If there's like a surprise project or something that comes up that requires some technical analysis, we may want to add more dollars programmed into that, other consulting and planning files. So that may be an item that, as Burt mentioned, looks a little different in our next presentation. We do pump that up. We'll make sure you guys are aware of that.

Biolytics master street design, we talked about that when we talked about our streets, so we're going to take that out here. Our community center entrance ramp for $20,000, so that's the revamp that we talked about doing at the community center over there. Street table revisions for $15,000. I put brush piled cleanup for $15,000. I got shocked with that sucker when I first got hired here and so I just always left it on there just in case we might need it.

Not just that we might need it, but since we have a living on a dump truck, we need a lot of stuff in the house. So it needs something that would make real life a decent house. Okay.

placeholder to help with that or?

The reason it was a shock was because it hadn't been maintained for five, six, seven years and it could get you fine dust if it's not taped up regularly. So we had to go in and do a pixel model. Yeah. So that one, we've had that question a lot. So that is when we get done with the comprehensive plan, that's some dollars that we've programmed to actually be able to implement some of the change suggestions. It has to do with the standard profile of the roadways based on if it's an arterial or a residential street or a cul-de-sac, you know, looking at how we want those to be designed within our neighborhoods and in the community. So it takes some engineering to do that and some inventorying of the streets you have and what they currently are, what the current conditions and those kinds of things are. So those are both. for future streets or current streets? I think that some of both, but mostly looking at how we want our street layouts to be for new neighborhoods. So kind of like the design standard thing.

Oh, okay. So you end up with numbers on the north side of Mayfield versus the south side of Mayfield.

I think that's a part of it. Okay, because that confuses the crap out of me. Yeah, I know. There is actually an addressing committee as a part of which hiring a business association, we could probably get you a ticket to one of those lunches. That's all they talk about. After he tried to find the meters. Good addressing committee. But yeah, that is tied to the comp plan and some of the subordinates like that program so we can actually implement it when it's adopted and it doesn't just sit on the shelf.

Community center maintenance. We set aside $10,000 for that just in case something pops up. I think there's some talk about the flooring over there and the kitchen that might need some work. So I don't know if we'll use it for that or not. The flooring is done.

It's done. Oh, it's done. It's flooring. It's more of a foundation than the flooring, but over kind of by the CBC director's office. I don't know how much longer that thing's gonna be.

We've got a clock down pretty good.

You can roll a nickel down that thing.

Can I ask, sorry, just while we're on this, I meant to ask this before, what was the challenge with the kitchen and flooring, what happened there?

It was just super cheap, builder's grade, and you got a lot of people every single day. So it just didn't last for a month. Yeah.

But we put in something better.

It's an LED floating floor, so if you turn on a roller and all the appliances and stuff aren't too much, it should be a few years. It was just on the way in. It would stick up a little over there, and it would appeal to people. Jason's crew did the new floor.

Yeah, it was awesome when they were doing it.

It looked really good. I put $5,000 for legal services. Sometimes our projects have legal reviews, so I put $2 over there into that project.

Before we turn the page, we've got excess funds being built up in that account for... health insurance. There's probably maybe one or two really significant needs that we have in the area for sidewalks. Would there be any interest in maybe moving a portion of that money? I don't know how much money, you know, How many linear feet of sidewalk can you drive for 10,000 or 20? But specifically, trails in basically clear to Main Street. The sidewalk from Main Street, 199, there's a sidewalk there to get you to the high school, but from there over...

Yeah, I think if we were wanting to add a sidewalk project, probably the number one priority would be the one from medical lodges to Walnut and then up north, south to the school. And we could program maybe 50 to 75K, just to play it safe for that one. We're going to have to acquire a little right-of-way. We would not want to use that source of funds. We would work to have other sources of funds we could use.

No, we're locked in and leave the dollars in there. We have to leave those there for health and security purposes.

Well, I know one time when they presented that, I think I was, we were kind of, I was under the impression that when that savings thing built up, I mean, we went ahead and, you know, we're paying 100% of health insurance. And because we were doing that, we needed some time to recoup some of that money.

i think from a legal perspective we could do that but what we're seeing this is the year of all years i mean there's still cities going through 20 some of excess of 20 25 increase so the balance is fantastic but we could lose a lot of that quickly if what you're wanting to do we have dollars at other places to use well that's fine i just

You said the north side of 23rd? I'm like wanting to go right down the trail zone.

Yes. I thought that we got them access to the Prairie Travelers Trail, but maybe they did end up putting a trailhead in. Right now there's no trailhead over West End.

And even so, every other street, like you passed my street on that one. I have a soon to be sixth grader who can't walk to school because there is no sidewalk whatsoever from us to Walnut. Same with several other kids over there.

And some of this stuff's not into the safe routes to school and stuff that they're working on. Tina had...

But I mean, if you're just talking about doing a few, yeah. Yeah. I would agree that, I feel like medical law just, did you say that? You said that. Medical law just won't, it would be... Well, there's... That community is completely... And doesn't want to get us in either.

Because they're too close. That's just something we talked about. We can have Jason help us with a price for that and bring that back to you guys for that project. And if you guys decide you want to look at more than that, we can try to find some. I think we got an estimate for that maybe two years ago, so probably should be able to get a new number. When do you want to start doing that? I'll help you.

Will you? I'm real good at oversight.

When you have to incorporate the stretch, once you actually get them out onto Walnut, you've still got to run it north and that's probably where it starts adding up.

I would think from that direction you want to run it south. To the school. and then eventually run it on more. That would at least get to the, that would tie into that side one there.

But we'll get a price, and you guys could consider it this year, I mean, or plan for it next, depending on what the price comes back at.

I just think there's so much going on right now, we don't need to be playing, you know, putting straws and little candles back. Stair steps. Look at it next year.

That would be my thoughts. Just one more thing to do. Well, let us get a price, and we'll present that to you in the manager's report, and then you can kind of direct us on what budget year you want it in and if you want it at all.

Well, and if we started maybe with a certain amount, then we could start the process of There are 12 kids that live in that neighborhood right now?

Is there a way that until we get the sidewalk done, we can ask the school to open that gate for them?

So they, if I'm remembering correctly, don't hold me to this, but I spoke with Dr. Henry after the citizen approached us, and I believe they opened it for the rest of the school year, which was a handful of days. they can't they're not going to open it next school year because they have to physically send someone over there to lock and unlock it and because of workload it's a possibility that there could be days that they forget to do it and they don't want that people it is a universal law and every school has a maintenance

Director, and I know this because we just did work out one in the school and that maintenance person who's in there before 7 a.m. every day could walk over and unlock that gate. That's an excuse.

Well, that's what they would do, but the concern is that if it's forgotten and now the gate's locked and the child is stuck and having to call mom and dad or go a weird route to get home, so... Will they be offering busing this year, though?

I know we're getting a little off topic, but we were just talking about this, so I'd like to see the sidewalk.

Because I think it's, I think we just need to reconsider it soon. Sometimes take them out of your hands.

I mean, the last thing we need to see is Walnut Shutdown because one of those 12 kids was hit by a car because the school went off the gate. So I think it would be a sidewalk over there. All right.

Sorry. Broke the momentum there.

So between 2026 and 2027, we're looking at spending about $3 million. To me, that was a lot of money. So I started getting nervous, and I started having to, of course, run through the cash flow system, kind of see how this was going to work out. Our median cash in 2026 is about $2.2 million. This is city dollars, not developer dollars. This is what we have to work with. Our interest earnings are projected to be $1.4 plus the $36,000 we're bringing in from the water fund. That leaves us with total cash in 2026 to be about $3.6 million. Our total capital project expenditures right now are set at 1.3 for 2026, leaving us hopefully at the end of the year with around 2.3 million in our funds. So we were able to accomplish all those goals and still have to meet enough cash on hand to worry about future years. So rolling that forward in 2027, we'd start with 2.3 million, bringing about a million dollars in interest Hopefully something a little bit better than that, but that's probably worst case scenario. Leaving us at about $3.3 million to work with. Our total projects in 2027 are about $1.6 million, leaving us with 1.6 million left over at the end of the year. So that's kind of where we're sitting. I think that's a good fund balance to have. We're able to take care of all the projects we want to. Some of these dollars, we have the option of reimbursing ourselves with 10 notes. become available if we want to or we can reduce the debt that we take out when we do you know the police station or um everly trails when we decide to go off for bond for those big projects we can either pay ourselves back and replenish this fund or we can just say we paid for that much and we won't have to borrow those dollars later so the other thing is you've got your 250 000 in reserve

So if you add on that 250 under that 16?

You've got another $500,000 worth of savings there.

I mean, that's the $1,684,000. 2.1.

So again, I feel like we're doing well with keeping those dollars there, doing enough projects Not hoarding a bunch of cash and doing projects, paying for things, doing things that are important, doing the things that are on our CIP that we plan to do. So that's kind of how it ends up in here. I was really pretty pleased with that. It leaves us some wiggle room if we need to. So, like I mentioned, our capital improvement fund was projected for about $3 million over 2026 and 2027. A good piece of that is going to be our police facility engineering and design phase. That's a big chunk of money there. Despite this, we're still, despite all these expenses, we're still ending in 2027 with around $1.6 million in debt. So, again, this is kind of how this fund worked out. I feel pretty confident with it. Again, I think it leaves us with enough leftover at the end of the day if we have some emergencies beyond our emergencies or any other issues. So, any questions? From what I gather, yes.

Can you explain your last statement?

Future external funding opportunities could further enhance the city's ability to complete capital projects while preserving fund reserves. If we were able to get grant funding. Yeah or you know other you know other sources of revenue of some sort pop up that we can put into this. The money we receive in for development project administration that we're going to receive in, $850,000 next year. I mean, we have it allocated to the general fund, but those are dollars that the general fund's doing well and something else isn't. I would move those around. So that could be something that could be put here too if we wanted it. In my mind, it's probably grant funds that come in that help offset expenses or help that fund out a little bit. any other questions so what i gather is we'll probably go back and look at the sidewalk cost and kind of see if that's something i mean we've got a lot to divide off and do in 2026 and 2027 we'll bring you back the cost and see what you want to do with that so this is where it would come from if we were to do sidewalks i know we seem to be pretty decent financing randomly here have we looked at next year's listing projects

I didn't hear you, boy. He clicked back. No, sir, I didn't click. so the question was with all the grants we have in the options today like looking at next year's list are the ones that we could be exploring grant opportunities for that we haven't i don't know i don't feel like for many of these there's going to be grant opportunities based on the programs that i'm aware of maybe some smaller grants

we don't really have like the small nonprofit foundations like other rural communities do where you can apply for two three four five six thousand dollars like the offset cost for a community center ramp or something like that um but we'll certainly look into it yeah if you guys see anything you know sometimes when you're a city person your phone feeds you things that maybe we're not aware of so Let us know and we'll certainly apply for it.

Okay, moving on. Equipment Reserve Fund. This is the fund that usually is funded through transfers from other funds. Water, sewer, general funnel, transfer dollars into this. It has a little bit of interest earnings, we'll go over it. But it's to fund equipment sort of purchases. police cars, computers, audio, visual equipment, those sorts of projects that are a little bit more costly. Again, most of the projects that you're gonna see are things that we've already seen before in the general fund or the water and sewer fund. Interest income, again, this fund gets a portion of that. In 2026, it's estimated to be about $9,500. Dropped it down just a bit in 2027 to $7,000. The fund balance in this one really kind of just remains even because there's ins and outs. There's not a whole lot of fluctuation in the fund balance that you'll see in a minute. Sale of assets, that's just never known. Sometimes we sell scrap metal, sometimes we sell police cars and old equipment and trade it in and we get cash for it. In 2026 right now, we've received in $9,600 for those types of components. I would typically budget zero for it, but since we have it here, you might as well see that we receive those in. Then we have our transfers in from the general fund. In 2026 we budgeted 195. In 2027 we have budgeted, planned budget of 385,000. Transfers from the water fund, $25,000 this year and we were able to bump it up to $50,000 in 2027. And then transfers from the sewer fund, $25,000 in 2025. So again, this is the major revenue source for our equipment reserve fund, $264,000 in 2026 and $467,000 in 2027. 2026 projects in progress. We've already purchased our I think if you remember last year, we budgeted for two this year, but we actually had to end up buying one last year because an engine blew up or something in one of the cars. And so I was like, well, cash is just going to either take it now or take it next year. So one of the police cars we budgeted for last year was paid for last year. That's why there's only one this year.

Once you put a car through the hall.

Council room audio and visual upgrade. We're proceeding with that with that program. You'll probably hear some more about that real soon. Budgeted at $60,000. I went ahead and kind of separated this out. I went back into my budget numbers. I changed the actual contractual amount where they're going to come in and do the service for us is actually going to be a contractual service. It will be in our operations. The actual equipment is out of this budget, so that's the $60,000 in total. Which is kind of a little bit high. I think it's going to come in less than that. It's probably going to be closer to maybe $45,000 to $50,000. Not so much, but I put a little leeway there. Emergency allocation. You know me. There it is. $50,000 just in case. Somebody's police car blows up and we need to have a new one real quick or a new engine or something like that. Computer and office equipment, $45,000. As I've mentioned in the past, we contract with Imagine IT and we meet with them quarterly and all the time, really all the time, but they have us on a schedule of replacements and upgrades and this thing is out of service and now we need this thing and you know those are those sorts of things for electronics so that's what we're estimating for replacements moving to the cloud and firewall and those sorts of items. Police camera contract at $26,875 that we're on like a five-year contract with, I think that's our flock, so that's what we pay there. Security camera upgrades, $25,000. and equipment repair allocation large items. So this is probably not gonna be used. When we had a bunch of older equipment that we weren't leasing out, I happened to kind of budget a little extra for just emergencies. We even have emergency repairs in the operations too. So we've got emergency dollars all over the place. I keep them hidden everywhere. They're not hidden, but they're everywhere. Just to make sure that we've got enough to cover everything. 2026, we're looking at spending about $307,000. 2027 projects. We were planning for our two patrol vehicles and their outfitting. A pool filter replacement for $60,000. Our emergency allocation of $50,000. Computer and office equipment is going to be around $43,000. And I do buffer in in the computer and office equipment, even though, imagine I tell just what it is. I kind of plan, like, maybe something breaks or we need to have a new... get a new employee we weren't planning on or something like that, we've got leeway to bring on an additional set of equipment for somebody. Our police camera contract, oh, computer, oh, there we go. Camera contract, which I already mentioned, that's our contract. We have to do pool and parks, radio, camera equipment, $11,000. I think Chief's been trying to get that done for quite a long time. And I think that they're having issues over there with camera equipment in the parks. It's not working. And so I think we're gonna finally be able to do that. And then again, equipment repair allocation, large items. So with that being said, that's about $373,000 in 2027. So, working this through just like we would do with the capital improvement plan, you'll see our beginning cash right now in 2026 is $308,000. Estimated earnings transfers in brings our total cash available to $572,000. Total capital project expenditures, $307,000, leaves us an ending cash balance of about $265,000. We roll that through, next year we plan to have about $7,000 worth of interest that transfers in from all of our other funds. And you have seen in all the other presentations the transfers out, and this is where they're landing. $460,000 total cash available, $732,755. Total capital expenditures that we just went through is $373,000, leaving us with ending cash of $359,000. It kind of comes in and out. It keeps it level. If something comes up, we definitely have enough left over to handle it. Any questions? Let's see here, equipment reserve fund. We're going to invest about $680,000 over 2026 and 2027. It takes care of all of our equipment, public safety technology, parks equipment, other capital assets, information technology, sets dollars aside for emergencies. Again, it's handled just like our last fund that we dealt with. Cash balance at December 31st, 2027 will be about 359. Again, everything's looking really good here. If anybody has any questions, happy to answer them. Other small things.

Small things.

We will just highlight these really quickly. These are just some of the little funds that we have hanging out there that we don't really have much control over and they have really specific uses that we use them for. First one is our TVD, our Goddard Galleria. So revenues generated within this district are dedicated to the repayment of debt issues for the Olympic Park. It generates very little, and whatever we bring in helps pay off. I'm going to use it all for debt service, and then when it starts kicking up and making more, it'll pay off the debt service for the Olympic Park bond. So whatever comes in goes directly towards debt service. The TDD Tanganyika, this is one of our new funds that's set up this year, which you've seen us using. Revenues are being accumulated and we're just holding those funds until the temp note for Hawkins Lane is permanently financed and we will use those dollars to offset the costs of their eligible costs on that project. So it's just being held, we don't really use it, we'll be passed on to them when we're completed. The CID, Ting and ECAF, that's our community improvement district revenues They're passed on directly to them as well. We do retain a 5% admin fee out of that for administration, but again, it's an in and out type situation. So again, this is really pretty simple. So just putting them all together in one chart here. The CIE, Tanganyika, our total revenue that they brought in in 24 was 103, 25 is 111. I'm projecting us to be 118 this year. We only really budgeted 100,000 last year. Since we're kind of bound by that budget authority, they will only receive $100,000 even if they bring it in. We'll hold it and make a big distribution first quarter of next year to bring those out. So that's why I would bump up the budget authority in 27 to make sure we've got enough there to give them everything that comes through. The TBD Tanganyika. In 25, we brought in $6,800. I'm estimating about that through end of year. So halfway through the year, we were setting about $30,000 or a little bit more than that. So they're bringing in those dollars. And again, those dollars will be used to offset the Hopkins Lane project. And TDD Galleria, a few dollars to help pay a portion of the desk service over there. Expenses, again, this shows everything just going basically in and right back out. Doesn't really get any more excited than that. Any questions on those? We're almost there. So, wrapping up. We've done a lot of work. We've been working on this the past nine months, or I guess it's only the seventh month, but we'll be working on this July. I should say the past seven months, but I'm projecting that we'll be working on this throughout.

Anyway.

We've had extensive department head meetings, budget meetings, meetings with you guys. We've had four city council budget workshops. This is our fourth one. We've had a public open forum invited the public to come and visit and provide guidance. We've had a community budget survey. We've had 43 residents participating in that survey. The budget documents, presentations and all supporting material have been updated on the website immediately. So everything is there. Transparency has been provided to anybody who wants it. And if anybody has any questions, they can ask us at any point in time. We've updated our 10-year CIP, which we did last night or two nights ago or whenever we were here. And, you know, always keeping that thing fresh. It doesn't get old and it doesn't get stale. We keep it going. We've had regular financial reporting. I've made sure I've gotten to you guys as soon as I can with all the financial reports, quarterly reports, the monthly reports, so you could review those and make sure that you are agreeing with what you're seeing through these budget processes. And we have collaborated a million times amongst our staff on different projects, made changes, added things, deleted things, tried to use the best methods that we could to use these taxpayer dollars to make them go farther. So I think you all should be really proud of what you've done and what you've helped to do and helped create. And I don't know what more we could do to try to get it out there for everybody to see it and do it. This would be the final analysis basically of all of our funds and kind of how we're going to end up and what's been presented in the state budget worksheets. All of our revenues and expenses per fund, total city budget we're looking at $22,528,000. Our revenues, total expenditures $23,000,000. We're going to use up about $543,000 of fund balance, which we have it to spare, so that isn't an issue in my book. So this is kind of a summary of everything. Our next steps, I will complete these state budget forms by August 1st, but they are done. They are in your packet. You will see, if you were to spend time and go through them, you will see that we budget 100% of our cash. Our total budget authority is more than what you're seeing here. We stay within our budget, but we tell the state that we would spend 100% of our cash in an emergency situation. So we don't have to go back and do a budget hearing and do amendments to our budget. We don't wanna have to do that. So if you're looking at this and you're saying, why does our expenses say 27 million? That is why you're seeing that. We need to publish the revenue neutral rate budget period notices at least 10 days prior to September 8th. My plan would be to, after tonight, take this and get it to the newspaper probably, I'm just gonna do it immediately, and have them publish it twice. That way there isn't any question Nobody missed it. If we miss it, we're in big, big trouble. So making sure that that stuff gets published on time. We will conduct our revenue neutral rate hearing first on September 8th. We will have, I will do a presentation on revenue neutral rate. We will open up the public hearing. We will leave the public hearing open. You guys will adopt or not adopt the revenue neutral rate.

Then we'll close the public hearing.

Then we'll go right into the 2027 budget hearing and adopt the budget. Again, I will do another presentation, tell everybody what we did and so on and so forth. We'll open the public hearing. I'm kind of thinking it might be best to do it in that format. That way they can hear what I have to say and then they can get up and talk and ask questions and then step back down and then we close it, adopt the budget on September 8th. All of these documents have to be submitted to the county clerk by October 1st, but we'll send it the very next day as soon as it's done. We won't wait that long. And then I am working right now on the GFOA budget book. Hopefully it will be done by September 8th is my goal. That being said, I think, guys, we've wrapped this up. Unless we have any other questions, we need to have any other meetings, we have a whole month if we decided we wanted to do that. Any questions, comments, concerns?

I just really appreciate your ongoing work on this process, how different it was from last year and the previous year, and there is no comparison to the transparency that you've created in this document. in comparison to your predecessor, and nothing wrong with anything that I did, but I just really appreciate your hard work, and I really do recommend it, so thank you so much. Not too late. We haven't sent it to the county yet.

We made a lot of tweaks, I think a lot, over the last four meetings. How does the staff feel about the direction that we kind of went with some of the changes? I went back and made all the tweaks that you made so the numbers that you see even I mean I went back just to make sure that if you know we changed salaries and we added this in I've made all those changes and I don't have a problem I didn't have a problem with those changes and how they affected anything I didn't go back and say oh well I don't know we should probably talk about it I didn't feel like there was a need for that so

I think that, of course, when all of our staff kind of submit our needs list at the beginning of this process, we all kind of understand that not each of these are going to be met because we have to live within our means and the taxpayer has an expectation that we're... spending the dollars efficiently and wisely that they were our own so that said there were several things that were cut or adjusted from what was submitted by staff to what has been approved but it's been a collaborative process i think we're ending with something that we're all satisfied with from the staffing level equipment level the programming and projects and different types of plans and stuff that we have It's plenty to keep us busy and make the days go by fast. But we just appreciate the way you guys have supported the process, inserted your ideas and requests. And I'd echo the sentiment that you guys are always sharing with Brooke about how well she has done. I think she's the best in the business at what she does, and we're very lucky to have someone with her skill set serving in our community. She makes it really easy on all of us to understand it and to know where the lines are with what we can afford and what we need and those types of things.

I think we all feel confident about it. As I was looking through some of this stuff today, just thinking how broad and diverse the expenditures are, but the improvements, whether it's software for the office. It seems like everywhere, it's not like there's anyone out there that's being excluded. So, I mean, taking advantage of technology to improve people's efficiencies. I mean, we're... we're hitting all the right buttons, I think, and it just, when you say it's a comprehensive budget process, it's comprehensive by the fact that you've included everybody, and everybody's getting, they might not get everything this year, but it gets the things out on the table, and so for the following year, as we continue to move forward, We're getting a lot of stuff done, and it's a run in January right now, and I appreciate everybody's work, but you can see that in the numbers, and I guess it's kind of neat that you don't have to go up front.

You know, I wish we had another lump of coal for the fire up here. It's so cold.

You know, or, you know, a police officer saying you need a bigger upgrade or a car. You know, if I'm driving a 56 Chevy or whatever. Or the public works guys out there that, I mean, they're finally working with decent equipment. Not everything that they have out there is new, but... There's just been improvement in all those things that increases efficiency, hopefully increases morale, and hopefully everybody on staff realizes that we're trying to be supportive of what they're doing and making their jobs more efficient and make their lives easier and make their work easier to do.

Yeah, I think they see that and they are appreciative of it. They have colleagues that are serving in other communities and you know they've seen some of them been around long enough to experience past and so they know that we're in a really good place and they're well supported and we super appreciate that.

I think we feel it on the other end as well. Colleen and Jason is a really good example but like it feels good to sit at this table and hear over and over you know we save money we did it in-house we have team players like we just went ahead and took care of it i think we hear that a lot and i think that makes it really easy to be able to budget um some of these things so i really appreciate that i feel like the city as a whole is in a good place and we have some really good stuff so

Anyone else? I haven't got a question. I'll make a motion that we adjourn there. We're almost at 7 o'clock. Do I have a second? Thank you. All those in favor say aye. Aye. Meeting adjourned.