City Council - Regular Meeting

Allegiance.

I pledge algiance 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. Okay, first thing on the agenda is to approve the regular agenda. I have to make one change to it. Uh item number nine, we're going to take off to the agenda because we need to get uh MDOT's approval before we can uh approve accepting those bids. So besides that uh change uh I'll take a motion to approve the agenda as presented.

So moved. Go ahead. Yeah. I got a motion by Sean Ryan, second by Maggie Bass to approve the agenda. Taking out item number nine. If there's no other questions, comments, all in favor say I. I. Any opposition? Okay. Passes 5-0. Next is the consent agenda. Uh does anyone have any questions on that? I think Bruce, you mentioned you may have one. Yeah, I have some questions on the law enforcement contractual service agreement. If I can try to ask some questions on that. First of all, have we had this particular agree? Well, we obviously didn't have this particular agreement before because it deals with Mystic Lake. But have we had these types of agreements before?

Uh yes. I think very recently we entered into agreement, was it just this year, Tim? um with uh Valley Fair um to help in situations similar as this. Is that right? Yep, that's correct.

Um and also this is a very similar type of agreement that we uh I would say pass around I guess to fellow communities around us when we have Dozen um for those communities that are willing to offer officers to help very similar to this format as well. Well, I understand the courtesy part of it and I'm all I'm all I'm very supportive of that especially supportive of supporting community type uh festivities and festivals and especially Dozen. Very appreciative of what law enforcement and new Prague and all around the area has helped to support Dinki. But I wonder a little bit more when we get into forprofit uh groups like Valley Fair. I think is this a nonprofit or or is this a for-profit business? This is for the amphitheater in Shakipi. So this isn't necessarily affiliated with Mystic Lake Casino. So there is a shuttle that runs back and forth. And this is when when Shakip was approached by Live Nation. Um, part of their understanding was that they were going to need some help from agencies within Scott County to provide the services with Shakip having, you know, their regular staff, their overtime and valley fair and things. So, they worked with the League of Minnesota Cities, their city attorney, um went back and forth pretty extensively with the league on this and in this contract to ask for help from other agencies. And quite honestly, they don't know what crowds are going to look like yet. So, they're trying to navigate this as best they can and asking for some help um in their best estimates for staffing um for security. Um it's also my understanding that part of the um ticket prices are worked into the payment of security with

the law enforcement. So, um I don't know that our portion is helping fund Live Nation. And ours is just the security helping out Shockby Police Department manage the security at the events. Does that Okay, I think that's uh kind of along the lines of Doseni except that it benefits a nonprofit. But the Mystic Lake Amphitheater is a for-profit institution, isn't it? Or does the city run the amphitheater? the city. I don't believe the city does run the amphitheater. It's Live Nation in in the city of Shakabe.

Okay. Well, I like, as I said, I'm totally supportive of the community and helping each other as a courtesy. I I do a little bit of concern when we start having our assets, cars and things susceptible to damage or anything like that or our officers obviously maintain a risk to doing that extra work. Is that done on a volunteer basis or how does it I wouldn't want it to affect your scheduling since you work so hard to get staffing the way it is.

Yeah. All of this would be aside from our staffing and our schedule comes first and when we're able to assist they've sent out um shifts that they need to have covered and there will be a number of shaky officers there and the idea is that a new Prague officer is with a shaky officer or a Jordan officer is with a shaky officer. So you're you're lined up that way. Um, and again, they just don't know what this looks like yet. So, part of it is going to be a pretty extensive feeling out process for them as well. So, they asked each each agency and um the chiefs and sheriff were on board with assisting and going to their cities and asking um for the city's support and helping out PD with this.

Okay. So at the at least a run through of one year, you'll have an idea if it really creates any pressure on your scheduling or in undue hardship or anything on and we've we've done that with our schedule already. We have they put out a a schedule of of events through the summer with an estimation of what they believe they're going to need for staffing. Um and Shakipi has covered a large majority of it. They just need a little bit of assistance from the other agencies in Scott County to kind of fill in And then Josh, the anytime an officer is involved in this, that gets added to workers comp insurance and all that. As far as total, as far as I'm aware,

there's a cost to us for doing this as well. Uh, I don't know if the the cost goes up and above other than if there would be some sort of injury um or something on the job. I don't know if our workers comp automatically goes up. That would be something that we would certainly have to check with the league on. Of the $130 an hour, does that come to the city and then they're paid? Okay. So then out of that would become the officer's overtime. Yeah. Okay. Well, I support the agreement and I think we should hopefully revisit at the end of the season or end of the fall or something to get an idea how this worked. Mhm.

Okay. Any other questions on the consent agenda? If not, I guess I'll look for a motion to approve the consent agenda. So move second. Got a motion by Rick Syler, second by Bruce Wolf. If there's no other questions or comments, all in favor say I. I. I. Any opposition? Passes 5-0. Next on the agenda, um we are very honored to have some uh students here who uh have selected careers in the military to be honored today. And I'm going to hand it over to Chief Appan.

Did you think they were all here to see you? I haven't showered today, Tim.

Did you? That's good. That's good. Um, mayor and members of the council, thank you for affording us this opportunity here tonight. Um, we have a a special opportunity here to recognize some of our high school seniors that have chosen to um enroll into the military after their um time with the graduation from high school. Um, part of that process is, um, I was approached, last year was our first year doing this with the Beyond the Yellow Ribbon, uh, which is a great organization that helps support not only those that are going to enlist, but their families, um, back home. So, we are we are very proud to be a supporter of that. Um, we had a dinner down at the um, Legion tonight, and that was that was great. So, tonight we want to recognize these students. Um we have a proclamation to read at the end um by the mayor and we'll go through that. But tonight we recognize a special group of students who have chosen a path of service, leadership, and sacrifice by committing to the military. As they begin this next chapter, you carry with you the support and pride of your families, your school, and your community. Your decision to serve something greater than yourselves speaks to your courage, character, and dedication. We thank you for your willingness to protect and serve our country, and we know you'll represent us with honor and integrity. Members of this committee are here with us tonight as well. So, I'd like to recognize them. Um, our school resource officer, Officer Ambrose, uh, Rodney Sawyer with the American Legion. Gunny Sergeant, where are you? There he is. Uh, Gunny Sergeant Charles Johnson with the United States Marine Corps 2 Eagle

Detachment. Dewey Kacina.

Didn't make it. Okay. And Ron Hosar with the Scott County Attorney's Office. Uh, we also have Assistant Principal Tom Wka right here. Uh, I'd like to also thank Nicole Gizman with the New Prague American Legion Auxiliary and Matt Harker with the New Prague VFW. Uh, at this point I will introduce Ron Hosvar, Scott County attorney, who will uh recognize our uh students. Thanks, Chief, members of council. As chief indicated, my name is Ron Hosvar. I'm the Scott County Attorney. However, today I am here representing Beyond the Yellow Ribbon. I'm a volunteer for Beyond the Yellow Ribbon, and it's my privilege tonight to introduce to you the citizens and graduates of New Prague High School that have decided to go into the military. As a 20-year Navy vet myself, I'm very proud to have I'm very honored to have this opportunity to introduce them to you. And once I um say your names, if I hope it correctly, you can come on up to the front here, please.

Air National Guard. Samuel William Cuadi. You get that right? Yes. You go up there and then face this way. There you go.

No pressure. Army National Guard. Kaden Michaelitz. Army National Guard. Mey Mock. Army National Guard. Adrien Anthony Mo. Also, Army National Guard. Gavin Jerome Karon. Get that one right. Yeah.

Navy. Bryce Douglas Lenvik, National Guard. John Herald Navaro and US Air Force. Joseph William Jerick. everybody. And here are your new enlistes.

At this time, we like to take a photo op with the council members and the mayor. We want to do a proclamation first. Oh, you can do. Okay. Thank you, sir.

Is that okay? All right. Okay. Proclamation office of the mayor, New Prague, Minnesota. Beyond the yellow ribbon, south of the river, recognition of students entering the military. Whereas the United States military supports the freedoms upon which our country was founded. Whereas entering in the military is a noble and important career choice, almost 2.5 million people serve in the active and reserve branches of the military. Whereas the Beyond the Yellow Ribbon organization is a nonprofit volunteer organization dedicated to supporting our nation's military which includes local active duty guard, reserve, and military veteran communities. Whereas the Beyond the Yellow Ribbon volunteer forces assist active duty military members, veterans and their families with household chairs, chores ranging from babysitting, cleaning to household maintenance. Whereas the Beyond the Yellow Ribbon also connects veterans with state, local, and federal organizations who provide assistance to veterans who are looking to enter the workforce upon completion of the military service. Whereas the new prey community joins the beyond the yellow ribbon organization to honor students who choose to enter the military. Whereas the United States Congress in 2004 passed a resolution proclaiming May as National Military Appreciation Month, a special month to honor both those in and out of the military. Now therefore, I, Charles L. Nikolai, mayor of New Prague, on behalf of the city council, proclaim May 24th through the 30th, 2026 as Military Appreciation Week with an emphasis on students who have selected careers in the military and urge my fellow citizens to observe this period by thanking young

people in our community who have chosen to enter the military profession in support of our freedoms, health, safety, comfort, and quality of life. proclaimed this 18th day of May, 2026. Congratulations. Stand next to the short guy. Congratulations.

Good luck you guys. Good luck. Thank you guys. Thank you. You guys can sit if you want to.

Unless you want to stand up. Um, at this point I'd just like to introduce uh Tom Lutchka, who is the assistant principal at the New High School. Uh, part of this process is a a great partnership with the school and supporting these um young men and women that are going to take on the next chapter of their life here. So, we've invited him to just say a few words here. Thanks, Tim. Uh, mayor, city council, thank you. Uh, we appreciate the support obviously uh that New Prague Area Schools gets from all of our communities in our school district. Um, we had a great evening tonight. Um, again, what I said at at the Legion tonight, when you drive down Main Street of New Prague or any of our communities, we know uh the support that our military receives from this community. And it's unbelievable. Being a military father, uh son in the army, my wife and I, our youngest son Ryan is in the army. Uh we know what that support means every single day um in our area. And on behalf of New Prague Area Schools, Superintendent Volmouth and our entire school board and obviously our uh administration and staff at New Prague Area Schools and at at the high school specifically like to congratulate our graduates or soon to be graduates as they uh step off into their military careers. couldn't be more proud of this group of young people. So, thank you for the proclamation and uh the partnership with New Prague Police Department. Uh Beyond the Yellow Ribbon has been phenomenal to work with and just a super super great people and organization. So, on behalf of the schools, thank you very much. Appreciate it.

Thank you. Uh just a couple of brief thank you. Thank you to the council mayor for for your time in the proclamation tonight. Uh we would like to also give a special thank you to the New Prague Legion Women's Auxiliary, the New Prague American Legion, the New Prague BFW, Beyond the Yellow Ribbon, New Prague School District Leadership, Marine Corps League Two Eagle Detachment, the officers of the New Police Department, and parents and family members of our students. Thank you. Congratulations again. You don't have to stick around for the rest of the stuff. You got plenty of things to do. But I appreciate you guys for coming and show support for your kids. Dennis T in here.

Dennis is in here, is he? Yeah, I know. We'll let him get out. Thanks, Ron.

Okay, next on the agenda is government agency updates. I do not see uh anyone uh from the government agency. Next on the agenda is the public forum. Uh I do have one person on the list. Brian, you know the drill. Thought I was going to have a uh crowd here. Uh Brian Pollson, 2064 Street Southwest. Um, I just wanted to draw attention to the key performance indicators for debt on page 20 of the auditor's presentation for later tonight or page 236 of the agenda packet. Uh, New Prague's long-term debt per capita is currently $4,876, significantly higher than our peer class 4 cities, Scott County, and Lassour County, which range from about $1,400 to $3,400. This was already elevated before the new police station. With upcoming projects, we are now projected to go above 6,500 per person. Pushing this level of debt onto our future residents is not fair, and other cities are not on this. On the police station, as many as you remember from the meetings, the bids as the bids came in, the council directed a 30-year amortization on the bonds. Ellers originally proposed a 25-year, and most cities our size finance these types of facilities over 20 to 25 years. We stretched it to 30 years specifically to lower the annual payments. I'm also concerned about the process. The city used only one architect, W, and did not see competitive proposals from multiple firms for different design solutions. It's common for a single architect to present three options. A very expensive one, an economy option that's still overpriced, and a middle option that then looks like a bargain. In reality, all three may not represent a good value. We also did not seriously explore other available buildings at the time, such as the Pizza Ranch property that was for sale right next to where the new city hall is being proposed. Building a brand

new police station was not an immediate detrimental need. It could have waited for more bids or alternative options. Think about it. If the city had not built a new police station and simply moved out of this current building to the new city hall, the police department could have taken over the entire existing city hall. it would have been uh a similar probable renovation cost that we already have been proposed for a new city or a city hall renovation here. Instead, now we're spending hundreds of thousands of dollars to renovate a separate building while carrying massive new debt and stuck with an empty old city hall. The bottom line uh is shown clearly on page 11 of the present presentation or 227 of the packet. We're facing $11,800,000 in future interest payments alone. That's over $1 million that's going to bond holders instead of roads, services, or tax relief. Costs we could be passing to future or costs we are passing on to future residents and taxpayers. On the city hall purchase and renovation, we are now uh also moving forward with purchasing and renovating the new city hall or it sounds like we are. Uh the renovation estimates uh total about $650,000 and several items appear excessive. $100,000 for new carpet. $50,000 for furniture even though we just bought new furniture one year ago and $35,000 for an architect. I urge the council to refinance existing debt when the opportunity presents itself and move to a shorter 20 to 25 year term and scrutinize or reduce these renovation costs, especially the high carpet, furniture, and architect line items I mentioned. Let's show real fiscal responsibility so we don't continue burdening future taxpayers. Thank you.

Thank you. There is no one else on the list, but I will give so anyone else an opportunity to speak in during the public forum. Okay. If not, we'll move on to the next item uh public hearing. Josh, do you want to kind of introduce this?

I will actually give this one to Ken since he is uh been the master. Him and Tim have been doing most of the research on this. I actually got to give credit to uh planner Evan Garrapy actually for taking the lead on the majority of the background work on this. But uh yeah, Chief Applain and myself um had been working uh with uh planner Gary as well to draft up the uh massage therapy licensing ordinance. Uh the planning commission or excuse me, the city council reviewed a very rough draft back on April 20th. uh at that meeting uh the topics of going to a buy uh annual uh registration or licensing was brought up. We did incorporate that in the language. Uh another topic was not necessarily requiring a background check, but if we do want to have one, it would be at the discretion of the city administrator. uh we reduced the uh look back period for when we do a background check from 10 years to 5 years to be uh comparable to what we do for um other tobacco and cannabis licensing. And then finally uh clarified language uh that we do not allow licenses to be transferred and they are for an individual only. Um couple other things that we just want to point out uh after reviewing with the city attorney um noted specifically one of the topics was whether we could provide an exemption for at home or like for a family member uh to be done uh for massage therapy. And we did change the definition of a um massage therapist who not include occasional work without compensation by um a member of their immediate family or deemed uh would be deemed not to be a massage therapist. So we did include that exemption. And really the final topic that we wanted to bring up since the last time

you uh city council reviewed it was that um we do have language that we added in there to make sure that if we need to do a compliance check um the operator or the individual with the license is required to allow um the city to do that compliance check. We will not have any set times for that. but if they refuse to do so, they could be subject to revocation of the um license at that time. So, we did uh include a full copy of uh the we'll call it the red line, but we just highlighted the changes from when uh the city council reviewed uh back on April 20th. And then we included the um cleaned up version of the ordinance for introduction uh and for uh discussion and ultimately a public hearing by the public. Uh we were not required to do a public hearing, but we did advertise that in the New York Times and would entertain uh that public hearing to happen tonight uh as part of the um process before we take care of the uh introduction if the council determines that they would like to do that. So I can stand for questions um myself and uh Chief Applan and um at that point if you want to open it up for a public hearing um I would recommend doing so. question I have is uh they said the fee would be in the fee schedule. Do we know what fee we're going to start with?

We will bring a uh fee memo in addition to the adoption if you want to move forward with that. We did do some research. We did not bring that tonight in case you were not in favor of moving forward. So we will bring that forward um if it goes to a second reading. Okay. And then we would have to amend the fee schedule obviously at that time as well. Right. Okay. I have a question about the definition of massage therapist where without compensation on an occasional uh basis within their own residence for members of the immediate family. Why immediate family?

I think we base that off of the discussion that we had at the city council meeting. We can change that if the council wishes to do so. I I think if we were just to leave it as on an occasional basis within their own residence and then strike for members of the immediate family again with you know without compensation um you know it's it's possible that there's a friend or a neighbor or something you know that um could benefit from a massage and there's no compensation and and I will take me as an example. I'm a massage therapist. I don't have a practice at the moment, but um I do have um friends that have asked if I could give them a massage. Um you know, because of some soreness or or issue um and I don't charge them. So,

I just want to kind of leave it open. Yeah, there would be no issue from a legal standpoint removing that. Okay. Thank you. Are we all in concurrent with that? Sure. Yep. Fine with it. Good. Okay. Any other questions before I open the public hearing? Okay. At this time, I'm going to um make a motion to open the public hearing on this ordinance introduction of for massage therapy licenses. Second.

I got a second by Bruce Wolf. All in favor say I. I. Any opposition? Okay. We have uh anyone who would like to speak at this on this matter, please come to the podium, state your name and address and uh make your comments. I guess I'm looking at this time there is no one who would like to speak at this time. So I guess I'm going to make a motion to close the public hearing. Second. We got a second by Rick Siler. All in favor of closing the public hearing say I. I. I.

Any opposition? Okay. Public hearing is closed. Next, we need to um do the first reading of the ordinance. Can we do that with that change? Yes. If you would like to include the removal of the uh immediate family uh language from the massage therapist definition, yes, we can definitely do that. Okay. So I guess I'll look for a motion to do the first reading of ordinance number 360 362 taking out the language of immediate family. So moved. Got a motion by Maggie Bass. I will second it. Any other comments or questions? All in favor say I.

I. I. Any opposition? Okay. Passes 5-0. Thank you. Thanks you guys for that uh that work on that. I think it's it was needed. Um eight. Matt, are you going to do any city engineering projects update?

Uh just a couple updates. Um the 2024 project, they uh we're back in town today doing some sewer lining. Um and we are still trying to get a I know and we're still trying to get a finished schedule on some street repairs they still need to do. So um been in contact with them for the last uh well Thursday, Friday, and today. So hopefully that continues. Um just a quick update on why we pulled the 2026 project um from approval of the bids is just because MDOT does have to review it um because we are uh taking state aid money. Um so hopefully that will be done by the next council meeting which shouldn't be an issue. I was hoping it would still be done today. Um and that won't affect our start date. It will not affect uh the completion date either. So that should not be an issue if uh approved at the next council meeting. Um bids did come in better than I expected. So, um, overall, I was pretty satisfied with the bid numbers, and we'll go over that the next council meeting.

All right. Any questions for Matt on any of the projects? All right. Thank you very much. Next, uh, it will be item 10 because we took item nine off of it. Uh so we have the honor of having Abby Schmidt from Abdu here to kind of give us a summary how the audit went and see uh welcome.

Thank you. Thank you for having me. Um I believe Robin will be um sharing the presentation. So um mayor and council, thank you again for having me this evening. Um like Mayor Nicolay said, I will be going through a summary of the 2025 financial statement audit. Um in just a moment here, so we have the big audit report and the executive governance summary that is available at the city if needed. I have a copy with me as well if there's questions on specifics. Um, but I will be focusing on this PowerPoint that um provides more of a highlevel um overview of what happened in 2025. Hits on those main points.

Sorry, I'm trying to drive off of that screen. Will this work? I wonder if you can do print to PDF so it shows up or

Oh, no. It needs an update. Okay. Is this okay? We can make this work. Yeah. Okay. Thank you.

If anything's cut off, we'll just have you scroll down a little bit. So, I will go through our audit opinion and our responsibility as auditors. We'll talk a little bit about your general fund, your other governmental funds, your enterprise funds, and then there are some key performance indicators comparing the city of New Prague to your peer groups. So, as auditors, we're required to issue an opinion um stating whether the financials can be um essentially relied upon by users to be materially correct and follow all appropriate standards. We issued an unmodified or clean opinion again for 2025. We are also required to opine on Minnesota legal compliance. We issue no instances of non-compliance there. Um those are areas like sufficient collateral coverage, contracting and bidding, making sure you get those multiple quotes, multiple bids. Um timing of payments and things like that. And again, no instances of non-compliance noted. Um we did issue one finding for 2025. I first want to note though that um we did clear up two findings that were issued last year. So the PAR system enrollment, we found that that was corrected in 2025 and then segregation of duties, we used to issue one um in 24 specifically related to the golf course, but there were some additional controls implemented there. So we were able to remove that. Um the one finding we did issue for 2025 is material audit adjustments. Um, so this relates specifically to capital asset activity for 2025 and related accounts payable items. Um, so there are a couple things that went into this. Um, issues with the software that was converted um, in 2024. Um, so that caused some pain points for staff on um, previous disposals not being removed from the system, some new assets added, some not. Um, so reconciling that activity. Um, I know

city staff has attended um a training just in May to help implement some um areas um that should help streamline this and avoid some of these issues in the future. Um a couple other areas of issue were um construction in progress that does not run through software um and includes ongoing projects. Um so this is where that AP item or accounts payable came into play. um essentially an accounts payable item that was for work performed in 2025 wasn't recorded because the invoice date. Um so that was kind of a learning curve with the new finance staff on when those should be included. So we did have those discussions um with the new accountant and um anticipate that that won't be an issue in the future. Um any questions on this finding? Okay. So, moving on to your general fund. Um, we like to start by showing where your fund balances are sitting. So, the city has a policy of maintaining 50% of budgeted expenditures in unassigned fund balance, meaning items that are restricted by outside parties. They're not committed by council or assigned by um the finance department. So, the the city has not have any issues reaching this 50%. Um I know generally when the city has over they will adjust the assigned and earmark for specific purposes um so that it's down to that 50%. So the city was over the 50% originally and was able to assign some additional funds um for certain areas. Um the general fund budget to actual. So that middle column represents what actually occurred in 2025. the right hand column showing whether you're over or under budget in each area. So on the revenue side, there were um additional licenses and permit revenues come in um

due to the Bohemia flats uh state grants related to police training aids and then um as well as interest earnings exceeded budget. That's typically an error that's budgeted conservatively just based on market uncertainty. On the expenditure side, there was fire department grant related expenditures, meaning there was money received for those expenditures. Um, and so that's where you see those um expenses in excess of budget. There were public works personnel costs and snow removals over budget. Um, and then miscellaneous expenditure um due to that payment to Lassour County for development costs. Um the other financing sources uses this includes things like transfers in and transfers out. So there was an unbudgeted transfer in. Um the city closed the ambulance fund into the general fund. So that was an additional 207,000 that came into the general fund with those excess funds. Um so overall the general fund came in ahead by 893,000 versus a budgeted decrease. um a quick look at your general fund revenues by type. So your main areas of revenue are going to be your taxes, licenses, permits, your grants or your intergovernmental and then other which includes um just miscellaneous revenue. So the only area I want to point out here is the the taxes. There was that um error with the levy in the previous year. So then you're seeing a larger increase this year because of the low increase um in 24. The expenditures by type again focusing on your main areas, general government, public safety, public works, culture and rep and your transfers. Um so public safety is the one area I just wanted to quick touch on. Um that has continued to

increase. Um employees are under a slightly different contract and the department was fully staffed for the majority of the year. Um, so an effort was made to do that and that's where you see some of those increased costs. Any questions on the general fund?

I did uh question I'm not sure when you said ambulance fund put in there just made me think I was wondering uh on a different report but you mentioned it here too when when you compare budgeted to actual the one column I'm looking as budgeted amounts original and final. So, I'm wondering, do we change the budget? Because it seems like the budget numbers in the audit are maybe a little different than what our compiled ones that we look at like at the end of the year. Just wondering if the maybe we changed the budget and um I don't was there a budget amendment in 25? I don't No, we didn't have one.

Um so, you will see a slight difference I might be causing this. Um the general fund is fund 101 but there is like the um another fund 227 I believe the pool fund. No 227 was the rental fund. Oh okay. But there are um um other funds essentially grouped together for financial statement purposes. So those would be included in the budget whereas you might be just looking at the general fund specifically. Um, so often that's done to track something internally, but it doesn't rise to the level of being like a special revenue fund. It doesn't meet those requirements or a capital project fund.

Well, maybe I could question it later because I I don't understand on the audit. I think it's the first time I remember. Maybe it's been done every year, but I really appreciate the budget amount comparison to the actual that you have in the audit. I don't remember it being there before, but maybe it was. I just never noticed it. But um that's a kind of area that I was looking at where that those numbers in the budget column even don't come out to zero which I was kind of thinking about our budget's always interesting adds up to but there there's probably some transfers in transfers out that are treated differently when the auditor looks at it versus how we put on our compiled report.

But I can follow up with that later.

Okay. Yeah, I'd be happy to look into it further too if I'm not able to answer it tonight. I think slide nine. Perfect. Um special revenue funds. I won't spend too much time on on this. The majority of these are related to small cities projects. Um you have your revolving loan fund. So um what you see here as fund balance um pretty closely reflects the cash balances in these funds. So there is um some some money out there for potential loan programs, things like that. Your capital project fund balances. Um so the the city was able to close a few of these as projects wrapped up um and then anticipates that several of these projects um are now complete and will be able to be closed in the future. So, something to consider as council decides where those excess funds, it looks like all of those are in excess as of the end of 2025. Um, but whether those are excess or deficits, where those would be closed to if there is no related um debt service fund and then getting into debt service. So, here's a look at um all the bonds. So, this is just governmental debt. Um the maturity dates are on the right hand side. Um, you can see the new EDA lease bond is on there as well. Um, so I' I'd like to go to the next slide, um, because that is a better snapshot on what your debt obligations are over the next 10 years. Um, so you can see there is a um, increase in 2028. That is the final payment year for the fire station. So, that one will be dropping off. And I do want to note this does include the payments for the EDA lease bond over the next 10 years as well. That is included in here. Um, one last thing. Um, while this shows what your debt obligations are, it's not necessarily showing what your funding sources are. So, um, this doesn't necessarily match up exactly

with what we would see as your debt service levy. For example, uh, principal and interest cost in 25 were about 1.5 million versus around 960,000 levied for on the debt service side. So, other things like special assessments come into play to pay these back annually as well. Is there a place to find that anywhere in the the debt service levy amount? That's just for the admiral balorum part of it.

Yeah. Um it's not stated specifically. Um but if you do look at the debt service um fund statement, um the collections on tax levy very closely match what the what was levied for debt service. Um there's usually not much in the way of difference between what was levy and what was received. So it would be page 124 and 125 of the project. It does not. Um this is just that would just be the 2025 information. That's what I'm more than interested.

I say I will say Bruce, we we have all that information on the backside that we usually work with our the financing consultant that helped us with that to keep those numbers. That is something we work on the backside and when we roll into budget season here in the next month or two, you guys should see an updated sheet on that. Yeah, I know you guys do it all the time, but I was just hoping there's a place I could find it somewhere that was easy and quick that

Yeah, I mean that could be something um I can talk with Josh and Robin about potentially adding something to the presentation. Um but it's not part of the standard audit report. No, just making a note. Okay. Um any other questions or I will move on to your enterprise funds. Okay. Um so for your enterprise funds, these are um enterprise or business type funds. So with the business type fund, you want them to operate like a business. So you want their operating receipts to cover those expenses out. So on the right on the top graph, the orange bar is uh your operating receipts and then the yellow and black are your operating dispersements and your debt payments. So you want to see the orange over the yellow black. So um water fund has not had any issues. I don't really have any concerns with where the water fund is at. Um and speaking with Josh and Robin, doesn't sound like there's anything on the near radar for water projects. Um the city will be working with the ABDO on a longterm um plan this summer. Um, so potentially come up with um a plan for these water funds, but right now it's it's just building up that cash in anticipation for um projects, which is kind of the goal with an enterprise fund. Your rate should cover your costs and enough to fund future needs, repairs, maintenance projects. The sewer fund is a little more debt heavy. So, um the operating receipts haven't covered your operating dispersements and debt payments for 24 and 25. Um there are some smaller uh bonds dropping off in the near future, but the big one is that PFA debt that goes out until 2038 and that's about 2 million um a year in obligations. So, just keep an eye on those rates. Make

sure that those um are are sufficient basically. Um there was a little bit of a drop in cash this year as well. Um not really anything of concern. We do present a minimum target cash line which would be your next year's debt payment plus 50% of your operating costs. Um you're well above that. Um it's just a a minor dip just with capital purchases, etc. Um I know that there is uh about $3 million in plan for maintenance projects over the next few years. So, the city does anticipate decreasing this cash. Um, but I believe those right now are planned to be funded internally with the cash on hand. Electric utility, I don't have much to say on this either. Um, it has some designated cash. Um, but it has continued to grow. So, it's operating similar to the water fund where those rates are sufficient to cover your operating costs and um cash is being held basically in reserve for future needs. Golf fund usually operates pretty break even. Um cash did decrease in 2025. That was primarily related to capital asset purchases which were planned. It was partially bonded for with an equipment bond of around 100,000 and then the remaining it was planned to spend down this cash. So that decrease you see in cash was not unexpected. Then the ambulance fund um like I mentioned earlier this was closed into the general fund. Um so no activity or cash um to report on for 2025. Storm water utility fund again running as it should. um has some good reserves for a potential project if needed or repairs and maintenance questions on those business type funds.

Perfect. I will move on to our key performance indicators. So the first one is regarding taxes. Um so the left hand side uh it's moreformational than anything. It's just showing what your tax rate mix is. So where the citizens are paying their taxes for the city portion, county, school, and then just a small portion of special tax rate. Um the right hand side focuses on New Preg specifically. That black line is where your tax rate is sitting and it compares it to um other cities in Lassour County, Scott County, and then class 4 cities, which are cities of similar size. Um so very your tax rate is very consistent with your peers. It um had decreased the last couple years, a slight increase in 25 um but it has not taken a big swing either way from 24 to 25. Here's a look at your debt. So on the left hand side, it's your long-term debt per capita. Um so this increase is no surprise. It's the um primarily that EDA lease bond for the police facility that was issued. So there was a increase there. Um I will say on the right hand side your debt service expenditures as a percent of current expenditures. There was a small increase. Um that was related primarily to approximately 400,000 in issuance costs for the two new bonds. Um so that first year there's usually some ancillary costs with issuing the bonds. So that's where that increase stems. um it doesn't obviously the the payments haven't started on that large new bond. So we'd expect that to to either stay about where it's at or increase once those payments begin. Expenditures, your operating costs on the left hand side. Um so new Prague is depicted in the black bar. Your operating costs um the city does a

really good job of keeping these really small increases per capita. um and generally falls below Lassour County, pretty consistent with Scott County um and then below other cities of your size. Um so while the city might be a little heavier on the capital project side, your operating costs are very much in line with your peer groups. The right hand side that is the capital expenditures per capita. So if there's a project heavy year like 2021 2025, you're going to see a spike here. in 25 it was the um the the annual street project and then the the start of the police facility project. And lastly, the water and sewer debt coverage. Um just showing um whether basically you're able to cover um the water and sewer debt payments. Um no issues with this as long as you keep an eye on those rates. Sewer is the one we we talked about a little bit. Those debt payments are on the higher end. Um but if um rates are increased accordingly as they're needed, then um I don't foresee any issues with being able to make those debt payments. All right. What questions do we have?

We're looking at you, Bruce. Bruce is ready. Nope. No questions for Abby. Can't let her off. I hope that you're going to let me off easy tonight. I guess I'll follow up with you with a question I have. Yeah. Yeah, feel free. Just understand just to understand that how that works. I say I I Yeah, I I'd see your question too, Bruce. So, I can Yeah, I'm looking at page 121.

Is a little off from the PowerPoint. It it's just showing that expenditures versus revenues we I mean we zero those out every year. And it's showing that budgeted expenditures versus Yeah. is about $187,000 off I think it said. Yeah. And I just the number I guess isn't any consequence. It's just that they don't zero out. Yeah. So I just wondered do we adjust the budget or or do you guys look at it differently than we look at it? But generally generally no. that should match up to what you'd expect it to. Um, so I'll look I can look into that because I wouldn't expect that to be different either.

Yeah, our budget um certainly does and did balance. So to Aby's point earlier, I'm trying to recall if there's an additional fund that that wouldn't balance, right? because I know it's it's for sure the 227, but there was another there is another one included in that and I don't remember what that budget looks like. So, well, we have our wellness, but that's a very low amount. The pool in there. Um, I mean, we generally budget, but it wouldn't be that far off again. Got it. That's a quick look up on my end that I can I can take a peek at tomorrow. And I will now as well, too. So

yeah, I noticed that we we have a little different categorization of things, but most a lot of the numbers tie out exactly, but a few don't. But I say that yeah, those numbers come off page 27 of the audit. There 27 or are 27? 27 in that packet book in front of you there. I'll look as well. I don't think it will take us long. Yeah, it'll Yeah, it should be an easy one to to figure out. We do tie the budget to page 121. So, I'd be curious to see what happened there. Yeah. Okay. Well, thank you, Abby. Thank you so much.

Thank you, Abby. So, do we uh approve the budget? Does that then get sent to the state or how does that work? So, I believe you accept the bud or you accept the audit. Yeah, you accept the audit. Okay. Um as it was performed and then yeah we will um do the various reporting that needs to be done on it. Okay. Any uh questions anymore from anything? If not I guess I'll look for a motion to uh accept the budget or the audit. So move. Okay. Got a motion by Rick Syler. I'll second. Second by Maggie Bass. There's no other questions or concern. All in favor say I. I.

I. Any opposition? Passes 5-0. Next, ordinances for introduction. We have none. 12. We have the second reading of uh ordinance for adoption number 361. Um reszoning that plat on Ravenstream by Ravenstream Elementary.

Correct. Yeah. So again, that was the outlot in between Trunk Highway 19 and Ravenstream Elementary. Um Calvary Church of New Prague looking to reszone west 750 ft from B2 community commercial to uh RM medium density residential. Uh we had uh done the introduction um at our last city council meeting on actually excuse me um yeah at the last city council meeting and then uh we did not have any other further changes or comments. Uh so just looking to have the second reading and consider adoption of that ordinance here tonight.

Okay. Anyone have any questions regarding that uh resoning? If not, I guess I'll make a motion to accept the or uh approve the ordinance number 361 for its second reading. I'll second. I got a second by Maggie Bass. There's no other questions or comments. All in favor say I. I. I. Any opposition? Okay. Passes 5-0. Next resolution. I think you guys just wanted us to read a lot of stuff this time. Sometimes it's nice to share the load.

Yeah. Well, I I read the condensed version. Who's taking this one, Josh? Or uh I believe this would be Tim. Boy, you're busy today. Oh, I know. Well, I'm the one that's making you do all the reading tonight, I think.

Yeah. Okay. Uh this is just an updated um the multi-hazard mitigation plan um required to do it every five years by the county. We did this last I think we did it in 22 or 203 for the one that was updated in 2021. When I took over I had learned that we had never adopted the previous one. So this is short of that five years. So we're doing a second one within the five years. But this will update the one that was from 2021. And then um they're required every five years. Scott and Leur County are on a different schedule. So Lisa counties will come next year. I found out um Scott Counties is this year. Um we did work on this. It's been a year or more. We've had some meetings and worked on this throughout the last year, year and a half. So

Well, thanks for your hard work. You want the motion? I'll make a motion. I'll make a motion to support and adopt the 2026 Scott County multihazard mitigation plan by approving resolution number CC-26-05-18-02.

Okay, I have a motion by Rick and I will second that uh motion for that resolution. there's any questions or issues that you'd like Tim Appling or Mayor Chief Appling to explain? If not, I not surprisingly. I had a question. Oh, okay. Just can't find it.

Well, I I think it's fascinating. This is quite detailed. It's a lot of information, and I think it's really interesting when you get into it. I I don't know if it's easy for people to access this or if it's available to the public at the Scott County website or our website, but it's interesting to know when the tornadoes occurred here or when serious snowstorms and it's just a historical u landmite land rich with information I should say. Um there's a a section with different maps with critical facilities and it outlines underground tanks and I didn't know if that meant and I don't know if you know Tim is that to mean like buried like gas station tanks. Um

it it could be that or it could be a storage tank of some kind. They encompass different tanks. Do you know which page it's on? I could make um of the report, it's page um 39 of our packet is 283. Okay. And it it doesn't it doesn't obviously show all the gas stations or maybe it maybe it Well, I guess it doesn't current gas stations, but so I didn't know if it was supposed to. I'm getting there. Hang on. And I just wondered if if it's supposed to, maybe it hasn't been updated.

I know I hit the wrong button. So I will say and maybe along these lines too, the one finding and this is semi-related to the next item. The one finding um that the environmental assessment had was that there are two potential small quantity generators right around that building. It would be Ace Hardware and the dentist shop for potential waste. Now, they've never had violations, but they could. And so, I wonder I mean, I don't know about storage tanks, but I wonder if some of those others are things like that. So, um,

thinking right there on the corner, that one would make sense. The one, it looks like there's one up along Seventh, right at the end of Columbus, which I believe is the school property. Do they have some sort of tank at the bus garage? Yeah, I'm sure they have gas tanks to the bus garage. That makes sense to me. But I didn't see like Quick Trip as an example or the or the um or the other Quick Trip um or the KC station. So I didn't know if it was meant and that just catches my eye because I had to take them I've had to take them out of the ground. Um so I don't know if that's what they are then maybe we should update it or something.

I will look at that because we did we did talk about this at at length with the different tanks in the cities. And we did talk about that. There's some discussion about the size of the tanks and what they hold. So, and let me let me check my notes on that and I can let you know. Yeah. And maybe it's not. Yeah, there was some capacity things that didn't that weren't required to be in there. So, let me double check on that and I can let you know. Yeah, I think the quick trips have fairly large tanks. I don't know if there's but yeah, that's the only thing. Otherwise, I think it's a great report. I think it's a lot of good information.

And to to Bruce's point, too, there's some um tanks that are certified, so they're the dual. So, they get they're exempt from being on this list if they're certified to a certain um level. Wh why would that matter if it's a risk or I know I know some of the fuel tanks that we have if if they are selfmonitored and they have a dual wall protection then that puts them in a category that makes them exempt to some of the filing. So okay that might make sense then for the quick trip ones why they're not on there modern tanks and they're continually continuously monitored they're exempt from some of that filing. So

okay thank you. Okay. So, I have a motion by Rick, second by Chuck. Uh, any other questions? All in favor say I. I.

I. Any opposition? Okay. Passes 5-0. Next, the general business. Uh, first thing on there is appointment of boards and commission members. Um, you see the memo from me uh and my recommendations for the different boards and commissions. Um, I know we're still one short on planning and and Rick has said he would stay on planning till we can get that uh filled. So, I think we'll probably um do another uh advertising of it. Uh because it's just for remainder of a term, right?

Correct. Yes. So, that one we'll appoint the new person to a full term. This would just be for the remainder of I guess what is it two-year term now? at this point. Um, we have been, I guess, since roughly the new year started advertising both on the website and on Facebook. Um, and we will continue to do so, hoping that we can find someone. Yeah. So, if you know someone that you think might be good, you know, you can explain to them. It's just uh to finish out a term so it's not like they be committed to a a full four-year term

type thing. So, is there any questions on any of my uh appointments? If not, I guess I'll look for an approval for my appointments. I'll make a motion to approve the 2026 board and commission appointments as presented. Second. Got a motion by Maggie Bass, second by Bruce Wolf. There's no other questions or comments. All in favor say I.

I. Any opposition? Okay, passes 5-0. Next is uh the purchase of 1201 First Street Northeast, which is the New Day Church facility. Um, so I guess you want to take this Josh and

um, yeah, two weeks ago, uh, I kind of presented the thought process the city had gone through and why it submitted a purchase offer for 1201. Um, ultimately an offer of 1.7 was made and um, the new day church accepted that. So we've been kind of doing contingency over the last couple weeks. City contract HPS appraal appraisal services um, an appraisal on the facility. Um, when I wrote this uh memo, we had not had that back yet, but that has come back and I did include that um in an email to you guys today. Uh, OBS uh appraised the building out at 1.75 million uh per estimations and then the city also contracted with Landmark Environmental to perform a phase environmental. I had in the memo that turnaround was guaranteed by Wednesday and they did actually they were able to get that back to us here um over the weekend and so I did that one was a little bit bigger so I did include that in the share drive if you'd like to go inspect that as I'd stated here a few minutes ago their general finding was that there was no hazards on the site itself but just note that there were couple potential hazards around them no violations um shown so uh Um, in addition to that, uh, the building official did also, um, kind of walk the property and look for potential repairs that would need to be made or things that he might see. Um, and I did include, uh, pictures of his findings um, here in the packet. We can certainly go through those if you want or you can look at it at your own leisure. Um, really it was a lot of minor repair stuff. The one thing he did recommend was having an HVAC specialist kind of perform a tuneup on geothermal to make sure that everything is in working order. Um he included a picture of a mouse that he found when he opened up one of the cabinets. So just to make sure everything was working prop

appropriately and then also if possible somebody who knows those systems could kind of give staff a little educational piece on things that we could be doing since we don't currently work geothermal systems ourselves. Uh the other thing that we did is that I walked the property um both with uh public works and utility staff a little bit uh to come up with some conservative estimates on what we thought renovation uh costs might be. Um we did not have a chance to engage any professionals uh in terms of remodeling costs or any of that. This is really our estimates as we were going through the project. Um and I included some of those estimates uh in should be in your packet. Um, as noted, right now we're estimating hopefully very conservatively that uh renovations would be about 6 just under $650,000 and that is with a 15 15% contingency built into it. And I kind of previously had I shared with you guys kind of a road mapap of this project in terms of financing and I did update that really within this road map I lay out a real path at this point that we could be paying for not only the facility but the renovations with cash that we have on hand um without even having to dip into the stander for a potential internal loan. But I did lay out um within there what some of those loan costs might be if for some reason renovation costs go over and how we could potentially pay for those uh Robin and I did work with OM kind of on financing as that is where we hold most of our investments and kind of what interest will conser conservatively look like over the next few years to be able to help that stuff. Um, really, as I know I mentioned last time, an advantage the city has with

this project going forward is that we aren't necessarily on a timetable and that does allow us time to both try to complete renovation work internally as well as contract out where it just makes sense. We're able to find somebody at a good rate. This flexibility will hopefully would hopefully be able to save us money. So, I would say if if we do approve this, I would recommend the next step being engaging an architect to help kind of design that front lobby council space area. Those are really the two spaces that we actually probably need to do a little bit most of our renovation work. Um, and while we have the ability to complete some of that work, an architect would be better in tune with just really how to engage those spaces appropriately and efficiently, knowing and hoping that if we go forward, this space would be used for the next years and we want to make sure that it operates as well as so we could also then potentially use the architect help and coordinate any equipment or purchases that may be needed. So within your packet, uh, assuming that the council wants to move forward, I did include a resolution drafted by the city attorney for formal approval of the purchase agreement. Um, as one of the uh, one of the call whereas clauses of that agreement is that the city formally uh, adopt it by May 20th uh, for 25th. I have also included a resolution for a reimbursements resolution on this project. Um while we have no intentions of bonding for the project at all, passing a reimbursement resolution does cover us if down the road a decision made by the council um to bond for this project after fact. Um and it really does cover us. As I said, you don't have to use it if you pass it, but it is a pretty standard procedure with most of our projects as a just in case to cover ourselves. So there are two resolutions included in your packet for that

purpose. So the the bonding uh reimbursement that wouldn't be if we borrowed from the sanitary we wouldn't use that if we borrowed from ourselves. Okay. It would be for some reason the council decided that you know what even if it's like we want to put out $200,000 bond for some reason to cover something. And again I don't foresee us even at this point even dipping into sanitary but it's more of a um ca for the future type. And apparently I've been off this entire time. So I hopefully people have been able to hear me. Uh I apologize if you had to turn your speakers way up for the last two minutes of talking. So we have to approve the resolution. Then we should also approve the purchase agreement also. Correct. So

So this would So the purchase agreement was put forth by the city council here. So that's been approved already. That has been approved and we have signed for that. So within the resolution we are formally I guess ratifying maybe we want to use the word the purchase agreement. Okay. Um that was made. So we would just be um approving resolution 26051803. Okay. And then yes 04 would be for that reimbursement resolution if if needed. Yes. I have a couple questions. The Yeah. Where do you come up with the the um renovation estimates?

So So yeah, so the renovation estimates as I mentioned um I first walked it with uh Matt Renda and Josh Hennon and then I also walked it with Bruce Rhymer later kind of looking at um the tech side of it. That was really us walking through saying, "Okay, what do what do we conservatively think that this may cost us?" Um, as I said, because we don't own the property yet, we weren't really able to get in there and say, "Okay, what exact like let's measure this out. What exactly is carpet going to cost us?" So, we tried to take what we carpeted city hall for and kind of make that on a larger scale. I will note, Sean, even talking about this as we were walking it, I don't think we'd need to carpet the whole building. And so, that would that's already saving us right there. this the I was just trying to get highlevel conservative estimates so that way we could try to get a grasp around what renovations could cost. Obviously hoping that we could reduce costs once we actually get into it. Um because we're kind of dealing with internal cash here, we're not really worried about over bonding and having to pay back. And so I do think that we're at we're an advantage certainly for that. But um part of not only engaging that architect to help design it so we can get a better idea. Um it would also be helping us we'd start getting quotes for some of this stuff as to what exactly would it

cost. Well, the only reason I ask is because when we walked it, um, before we put our offer in, I for some reason you you threw out it, you thought it would be there was a couple of bathrooms and it would be about $200,000 and now it's $650 and there's new furniture and there's new carpet and whatnot.

Yes. Yeah. So, the furniture item I threw in there, um, we are going to basically I would envision at this point using almost everything we have in city hall and moving it over. I I furniture is one of those that you put in there hoping that you don't have to use it and then that's just there. Um I don't know about the $200,000. I remember mentioning to you guys I had highlevel thoughts of around 500 to a million is kind of what I'd gotten when I'd talked um really high level with John McNamera from W. Just knowing that he's like the one architect contact I have now through all this police station. That's kind of what he he said without doing any deep dive on it. I think you could go a long way or get all the way there with 500,000. Um, million dollars would certainly get you where you probably want to go with this. And so, um, yeah. So, I mean, that's like I said, the carpet one was as we walked it. I think there are certainly and I think the more trafficked areas, that front lobby that, uh, the sanctuary that New Day currently uses, I think probably do need carpet. It's pretty rough just from the daily Sunday traffic they've had for 15 years. you get back into the offices, Matt and I were looking at it. I don't I don't think you need to replace the carpet back there. Um the carpet looks just fine. So, but but this was trying to get a highle estimate as if we had to carpet the whole building, what conservatively do we think that might cost us and that was kind of based off of what we knew it took to carpet city hall.

Okay. And and I'm sorry, did you have another question, Sean? Go ahead. You can. So, I mean that front area, the the entrance area, the lobby, it could be some other type of flooring that correct would be more permanent, wouldn't have to be cleaned, you know, just perhaps mopped like our tile downstairs. So, I I think we should be open to different flooring types that um will stand the wear and tear. Yeah. And and I I think we would be I I would hope to if we worked with an architect, they would be able to say, "Hey, I've worked with office buildings or city halls. This is the sort of flooring that I would put out here as that durability factor and return on your investment, that sort of thing."

Well, let's remember that the architect gets a percentage and they don't control costs at all. We

I would say this too, Sean, that and I I put 6% in here because as as a non-archchitect, I have no idea what architects would charge. I would recommend that we go out and we ask for a flat fee and whoever whoever we end up working with, we don't off work off percentage. We are looking for proposals on a flat fee. Um bas knowing that we will try to do a lot of this work ourselves which takes cost down and so um I I yes I would recommend finding someone with a flat fee on this just being that it's a smaller project. Well, I don't know what the the right answer is because I I just feel like I'm giving you a blank check with these numbers that you've come up with and and I have no doubt that you'll spend right up to it. I just that's just my gut feeling. I

I I certainly appreciate the vote of no confidence, Sean. But I will also say we're not going and buying all of this tomorrow. Like this is a process now that we have time as a city to take this over. whether I planned on if we were working with an architect going out and getting a few quotes of flat fee proposals from a couple few architects to say, "Okay, now let's move forward with this person who seems like they've got a track record and the price is reasonable, hopefully way under $35,000." Um, and then just start working from there. And it's not like I'm not asking for $100,000 in flooring this evening. I am saying this is generally a highlevel estimate that we have done on these renovation costs that hopefully when the day comes I can come and say hey this is what's being recommended. We were able to get the job done for $45,000. May I move forward with this?

Well, I appreciate that. Um, I would feel a lot better if we were constantly updated and given alternatives um that we could decide as opposed to just saying, "Okay, yeah, let's we agree with $648,000."

Yeah. Yeah. The $648,000 is I know that at the last meeting you guys had asked, hey, well, if instead of just saying $500,000 to a million, like can you break this down a little bit on where you think some of those costs would go? And that is what this renovation estimates was. I'm not I'm not asking for a blanket approval to spend $50,000 on mechanical work or $150,000 on tech fiber tech that sort of thing. And basically you tonight I you know we're just approving the purchase of it you know and the questions and concerns you have I think you know if we approve an architecture

then we can after he comes through then we can you know Matt his people can say hey this is what we can do you know the architect's estimate is 50,000 Matt Fields we can do 20,000 inhouse type of thing you know then we can get into the nuts and bolts. Okay does that make sense? Yeah, if we go into the nuts and bolts because we saw how it happened. Well, we're not going to look at every nut and bolt. No, I'm not saying we need to look at everyone, but I would like to know um early on in the police station when we asked it to skinny it down a little bit uh because we weren't really comfortable with that initial number and it never came down. And I'm sure that if we

I mean, if you remember right, Sean, the police station did start at almost 18 million and it did whittle itself down. I don't have 18 million, but you know, um, do we need a patio out back, you know, with with, uh, furniture and whatnot? Could we have I I don't want to get into the weeds because it's it's over and done with now, but I just there it just moved so quickly that um, that's where I'm a little leerary on just handing over a blank check to you here with some of these estimates and I was cur Yep. I mean I mean where those figures were coming. I will say some of these are large figures. dart board

flooring is potentially a large figure obviously. Um some of these ADA sidewalks I don't I'll be honest that is one of those it feels like we just kind of take care of it because the ADA has to be taken care of. Um furniture I don't foresee any furniture but if for some reason we look at it and say hey we could build a desk for 5,000 or you could buy a pre-made desk furniture for4500 that becomes part of your furniture budget. And so, um, the furniture I was foreseeing is more of that front lobby andor council space. Are there things that we would we would need that we don't currently have. So,

yes, this is not the last time you guys will see most of these things. Okay. Any other questions? I had a general question along the same lines with that with the technology part. I I assume that that doesn't transfer at all, but I thought at one time some of it might. So, yeah, wiring or network or some of that. So, the number that you have in here is that what is that assuming?

This is a large number and this is why I asked Bruce Rhyrs to be here. We would basically take this city hall and gut it for everything that we could. I mean, we've got speakers in the ceilings we could take with us. We've got all of this council stuff. I know talking to Ken when we bought the stuff. We built it with the ability to move it should we ever need to in the future. Um there probably is stuff in that 150 the building is all wired out with cat 5 cable at the moment. This would be a good opportunity to get in and get it up to cat 6 and it sounds like Bruce thinks we could do a lot of that work ourselves depending on what staff levels look like and where we're at. Part of this number two also involves the fact that uh the city's fiber ring that we have all the city cities city facilities connected with is about a block away from this facility.

So this $150,000 would include getting that fiber ring trenched over to this building because it I think it runs up 10th and so we would just have to get it to come down First Street to get it over there. And so, um, this is another one of those items I would hope to not need 150,000, but I would rather say we need 150 and then not use all that cash because again, we're not borrowing for any of this. So, it's not like we're borrowing to pay back extra that we didn't spend. This would just be not spending cash that we have at the moment. Well, I get what you're saying. I'm not trying to make an issue out of it, but there's opportunities cost everything. And if we're using cash, it's not like it doesn't cost us that thing. The cost.

No, that's there's opportunity cost with cash and it doesn't influence the the probability of levy having to be increased because you can't use that money for something else. Um, so there's there's that. And I know that this affords us the opportunity to have a a a glide path to maybe a a nice transition, but there's cost in in not doing it in a timely manner, too. Um, as soon as we write the check, there's obviously lost interest from the day one of the closing. So, that's money we're not making anymore in June, July, August, or however long it takes us to do it. And delays to whatever we do at this building. So,

and and and and I guess I say that not to say that we're just going to sit on our hands for three years and move in, but more along the lines of I know there are times when you say, "Well, shoot, we need to be in in three months." Like, all hands on deck, not a single other thing gets done. We got to hire out all of this work. And so, it gets way more expensive, but it becomes more of a we can slightly set the timetable ourselves and we're not under under the thumb of somebody trying to push us out, per se, right? Okay. And so I would hope that we develop you develop a timeline that's reasonable and that we can keep your hands to the fire on and so we're not sitting on things and kind of that we address it quickly. Yeah.

Um because it is costing us money operating with two buildings if we're not going to keep this one or if we're going to not knowing what we're going to do with it. So correct. There's definitely a cost. So I felt I just had to say it. Okay. Any other questions or comments? If not, I guess I'm going to make a motion to approve resolution number CC-26-05-18-03 approving the purchase of 1201 First Street Northeast. Second. I got a sec. Second by Rick Siler. If there's no other comments, questions, comment.

Okay. Um the I think this is a big move and I think it's an opportunity that we're taking advantage of. Wasn't very excited about it in the beginning, but uh it seems to make a lot of sense. I think it affords us the ability to gain uh we're always looking at trying to get value for our taxpayers. I think this is an opportunity that when we look at the long term, the building will pro provide value to the taxpayer. uh it's in very good condition for the age and I think it will wear well. So I think there's some um long-term value there too. The the ability of the building to match what we do in our operation I think will fit our mission. So I think will provide decent workflow and there may be some economies that will gain their security and accessibility I think is good with the building. Maybe better security in some ways. Um, but I'm you're going to look into that as well. So, I think it does provide a lower risk or good condition situation and certainly u less cost than a new build. A little confused by the appraisal. Uh I thought that number was kind of low for cost of building a new building but um even looking at the W numbers before before the cost of constructing new is substantially higher than what we're considering here. So I think that a lot of things get checked off here. I asked Josh and I think you would provide information on the information on building or adding on to it. It does provide that opportunity. So, it does provide some opportunities for long-term growth if we have to use it. I do I do wonder if we really going to need to use it that soon or that quickly is what our study showed. Um, so I think there's some flexibility there. So, I just stand in support of the resolution.

Just one comment I want to make is I had a number of residents come up to me and and thought it was uh a building that looks like it should be a city hall and they thought it was a a positive decision to be made um for the for the city. So I I did get a lot of people come up to me and and and mention that to me. So any other comments or questions? I got a motion by Chuck Nicholas, second by Rick Syler for approving this. Um, there's no other comments, questions. All in favor say I. I. Any opposition? Okay. Passes 5-0.

Next, I guess I'll make a resolution to approve the uh compliance reimbursement bond regulations number CC-26-05-18-04. I'll second. Okay, I got a second by Maggie Bass. Any comments or questions on that resolution? If not, all in favor say I. I. Any opposition? Okay, passes. 5-0. Okay, miscellaneous. Uh Rick, you have anything? I just want to say that the purchase of this uh city hall is um I believe it's a good it's a good buy. It's going to in the in the long run um it's a really good thing there. So,

okay, I'm with it. Bruce,

I just wanted to circle back with the audit with the material audit adjustment. I know that things have been addressed and and uh done on that, but just so it shows that the city council did reflect on that and we did because you you said make comments about training and such. If you can make sure those things are in the minutes that action was taken, what action was taken to address that. So, um, it's not left that we didn't look at these recommendations and didn't do anything with the recommendations that they gave us. So, I felt that because they gave us recommendations, we should have that documented. And if we're not going to do it, then say we're not going to do it, but since you already did it is what I understand.

Um, that we you should get credit for it. It should be in the minutes or make up a memo or something. Okay. Anything else? Nope. Sean, I just had a question. When is the What's the status on the police station? Are we almost done with it? Are we uh I believe we are what 3 to four weeks out. Does that sound right, Chief? He's not saying a word.

Yeah, hopefully. Um waiting on um there there's a timeline that was given out like a a rough timeline. Last week I was at the meeting and um the first furniture delivery is on the 15th. So I don't know they didn't know at that point what came in what order. So and then finishing it IT things and doing in inside finishes and I'm trying to get a better timeline so we can open it up to the public and have people come in and see. So I it's just tough cuz there's a lot of balls up in the air with contractors and things and hopefully we'll know something more next week at the next construction meeting. Okay. So, but they did give a they have a schedule to trying to work off of and things get rearranged with contractors and timelines and things. So, it's kind of a a moving target at this point.

Are they on the punch list? Did they say are are they working on the punch list now then? No, not yet. That was the only question. Okay, Maggie. The only thing I want to say is I too have had a few people um express um positively uh the potential purchase of and now the purchase of the property for the new city hall. And ironically, I haven't had anyone say they didn't like the idea. So, scares you a little bit. That's it's hard to get everybody to agree on anything quite frankly. Anything else? No. Okay. Josh, you have anything else?

Uh yes. A couple things. Um one, uh with this approval, we are formally set to get the keys on June 5th. Um so, um I guess we'll eagerly await that point. Uh also of note, um I know Abby Schmidt with Abdo had mentioned the long-term financial plan. I was wondering if you guys had the ability to look at your calendars. Um because I know they you guys they're very interested in getting this thing started and kind of working with you guys on goals and what you expect out of all of this and that sort of thing. Um so without knowing all of your schedules, you can shoot me down. Um are you available? I'll say closer to the end of the workday. Like my but my my first initial thought is June 8th, which is the off Monday uh here in like three weeks at like 400 pm. So that way we don't necessarily have to meet late into the evening. Um but I also don't know because I don't know if that works with your schedule, Sean. Um and if it I mean we can certainly start a little bit later in the evening if we have to. I was just was available a little bit earlier in the day. Yeah, that uh what was the date that we were

I say so 68 at 4 PM it. Yeah, I'm I'm available. If you guys are available, we'd probably do the long-term financial plan and then I'd like just to have kind of a short pre-budget meeting, I guess, before um we really start diving into numbers just to talk budget high level going into this year, just knowing we got a a few things we're juggling. So, sounds good. Okay. Will there be in information provided ahead of time? Uh, so we don't have to start Yeah, as much as we can. And and it'll probably be a lot more of just like things to think about. But yeah, I'll try to get that stuff out as soon as possible so you guys can start mulling it around in your brains and it's not a surprise.

Is Abby Abby leading this? Uh, I think it's a combination of either Abby or Brad. Um, who Brad is her supervisor uh at the partner. Yeah. So yeah I Yeah. So I think both of them are kind of heading this up for us. So I expect one if not both of them to be there. I'm all for it. I just don't like a lot of extra meetings and so if it's done hopefully in an organized manner and that's why yeah hope hopefully have a little bit earlier in the day. See if we can get both of them at the same time. Um and yeah, we'll come with an agenda and hopefully stay on task. Okay. Anything else? Uh I think that's all.

Okay. Robin, you have anything? Ken? Bruce? I just wanted to give the council a quick update. Robin and I met today with uh Ellers and then uh Katak Rock who's our bond council for the bonding for the West Energy Station. Everything's on schedule and we hope to um set the parameters resolution and so for the commission to approve um this month yet and uh also set up the pricing committee and then um it's assumed that we will go out for bond mid July sometime. So everything's looking favorable and hopefully we get that done and that'll be behind us. The project's progressing right on schedule. So

okay, good. Tim, anything else? No. Matt, Mitch, Benny, Brian, anything else? Gentleman in the corner there. Joe, it's my first council meeting, so observing. All right, Patrick. The only thing I have, Josh, is charter commission. Um,

uh, yes. So, we have found the we'll be having a few replacements. As we know, we had seats kind of came up here January 1. Um, so I think there were two charter commission members we had to find for and we did find those. Actually, just this afternoon, I got the resolution back from um, Kennedy and Graven to re-up that because if as you guys remember or maybe you don't remember. So, the charter commission, they technically are appointed by a district judge, not by us. And so, we can make uh recommendations, and I know that our local judges will usually take those into account. Um, and so I that will be at our next city council meeting here, a resolution with that recommendation, and then I'll give that to Kenny and Graven, who will pass it on to the district judge, and then assuming those people get appointed, we can schedule the meeting.

Okay. I know the the one big thing and we'd kind of talked about this that we the charter commission was looking at was potentially implementing an administrative fine correct um system because the standard system that we've been using for many years of letter letter go to court for a long time doesn't works with mo works with most cases but there's always those one or two percents where they drag their feet and we've now been staring at a property nuisance for three years. So, um, that, yeah, that's kind of the big thing coming back, right? I recall that that was the only thing on the docket. So, all right. Well, let's keep that moving forward. I don't have anything else. So, I guess I'll make a motion to adjurnn.

I'll second. Second by Maggie Bass. All in favor of adjournment say I. I. I. Any opposition? Okay, we're out of here. Thank you, everyone.