City Council - workshop

Thank you.

Good afternoon. Welcome to this budget review session. get started here 4 p.m. call this meeting order form the public about the location of opens meeting act posted in the building here right over there in the corner it's accessible to all members of the public at this time I'd like to ask for roll call Granquist here Arnes Webb here McCarthy here Beckman here Jensen Lange here Kildebrand here mayor here with that we'll start discussion and we'll go to item number four, review and discuss the vehicle parking fund budget. And Connie's here, come on up.

I'm here.

I've already signed in. Connie Currie, chairman of the vehicle parking district. And let's see. I think we will start on page...

Page six, right?

Let me look there. Page six. Yes, we'll start with page six. And with that, oh, I want to look at a different page. Let me just start right here. Okay. I'm going to start. I'm going to use this one I'm starting, but this paper here. Okay, so with that, we've got a balance brought forward of $140,876. Taxes are $145,000, and interest income is $3,900. That's going to give us a total revenue for... Wow, can you hear the mic there? Okay, sorry about that. Did you hear that, or start over? Start over, okay.

Yep, we didn't hear it.

All right, so our balance brought forward is $140,876. New taxes are $145,000, and other interest income is $3,900, giving us a total revenue for the 26-27 year of $148,900, and total funds available of $289,776. Any questions on that? OK. We've got operating costs. And for that, we probably will go to page six. No. No, no, no. We've got to go to page. I marked these. Let me look here.

Oh.

All right. Page 10. I'm going to give you these. I keep running into them. So we've got operating costs for item 33 is contract snow removal, and we put in $50,000, which is the same that we had in last year. And we've been kind of holding that in there because like two years ago it ran $49,000. Maybe three now, so we just want to make sure that we've got enough budgeted should that happen last year I think it was twenty two thousand nine hundred or something like that, so it was much less For them utilities and maintenance electricity Code for that is forty one four thousand four hundred dollars water and sewer which is the item 43 And that is $2,000. Then under Code Item 46, our maintenance. For sweeping, we've allowed $5,000. Landscape maintenance, $9,000. Hardscape maintenance, $2,500. Trash collection, $4,320. Materials and miscellaneous labor, $2,500. And then parking lot and maintenance... $60,000. Now there's a little extra in there that we're replacing that's not parking that we're going to use out of there. We're replacing some trash cans downtown that are getting kind of beat up and rusted. And we're going to probably try to rework those that we can if we can get some repairs to them and get them painted. But we're getting some new ones in there. And then we're also doing some things in the downtown, if you've noticed, in the medians. They've been bare for several years. We had that one year where it was just so dry and with everybody walking on them, we lost most of what we had in the medians. So we've been reworking that. So it'll just go into, we'll probably be drying out of that one a little bit for some of that kind of stuff, just to get us looking good down here again. So then that makes the total maintenance $83,320. Total utilities maintenance $89,720. For public relations, which is under legislative affairs code 50, we've got $660 for our music service. Website hosting is $840. And then total public relations is $1,500. which is the same, pretty much everything's the same as last year except we've got the parking lot maintenance that is a little bit different. And then we've got a little bit more on the water and sewer. And then we also added, with hiring of the downtown manager, they had asked if the vehicle parking district could assist a little bit in that because some of the funds with, when we brought it before the council before, churches came out and with churches some of the other things that weren't churches came out as well and so it shorted us on what we wanted to be able to offer for a wage, a salary for that person so that we could get somebody that was just a little, we were expecting a little more. We weren't planning just a party planner or something like that. We want them to have other qualifications and other duties. So with that, we've spread out the cost a little bit. And the VPD is going to give $1,200 towards their CPA cost, the monthly CPA cost. I think it's $100 a month for them to just review each month. And other than that, I think that covers our budget. Any questions?

So the person that hired, where's the fund for their income or their payment coming out?

That comes out of the bid, the BID. If you remember, we came here and we were getting an assessment approved that was coming through the BID and it actually goes into the DNA's account. We don't have those funds. The BID gives that money to the DNA because they oversee that person.

Thank you.

My question would be with the total revenue minus the beginning balance or the beginning fund balance of 148 and then your total expense of 197, that puts your ending balance at 97,000. This will be the second consecutive year of a reduction in the beginning balance. Is that something we're the beginning fund balance. Are you trying to get that down to zero or is it really not?

No, we're not trying to. It's just kind of ended up that way. And we had promised to give $85,000 a couple years ago and it became part of getting the, like the entrance, I can't think of what it's called now, just the, you know what I mean, the archway coming into the downtown. So in order to do that they had to have matching funds and they had come to the VPD at that time. So that is, that did come out last year. And even though it carried for a couple years and we were allowing for it, we knew it was going to reduce us temporarily. Well, I would hope that next year there is a gain. We haven't raised our tax rate at all. We've kept it the same, our assessment rate. But with that, there's been some properties that have come in that have raised it too. So it's gone up and down. And I think next year without a big chunk like that $85,000 coming out, we'll see an increase. It won't be a lot. We don't have a huge budget. We're kind of thin.

Right, right. Okay.

Other questions? All right. Thank you. Council and Mayor.

While Connie's up, are there any questions from anybody here this evening from the audience? No. All right. No, I guess you're good. Unless there's more from the council, we're good. All right. That leads us to... Item 5, the review and discussion of the airport authorities budget. Justin's going to come up and go over that. Good afternoon. We should be on page 14 now.

So as you can see, our balance forward this year will be $1,699,760. 69. Property taxes, we're at $826,128. Total revenues is going to be $1,122,150. So total funds available at the bottom, $4,736,847. Okay. We want to go through all this.

Does the council have any questions with the airport right out of the chute? He's got a couple pages here, four or five of them or so. Is there anything that draws your attention?

We can run through them. There's no really major changes. You can see... That total revenue is down 38.54%, but that's because a lot of those grants from the year prior have all been paid out, and we're not getting a bunch of grants this year. That's kind of moving forward to the next year. I know our funds are up a little bit. We're trying to bank some money moving into the runway projects that are going to be needed to be done in the next few years. So we don't have such a large ask at one time.

I see a, you got that new building hanger design fees, uh, in your item code 82, 101.3 million. Yep.

That's that new double bay hanger they're working on right now.

Last year you had 1.4. So you're trying to build that up to get to the current budget. Is that what you're doing there?

No, it's we've, we've had a couple of change fees that, that added a little bit more into that.

Okay. So you anticipate your ending amounts to increase a little bit at the end of this fiscal? Yes. Is what it looks like, yeah.

I plan on doing that the next couple of years as we're moving into these runway projects because they're going to be... They can be astronomical. We're working with the FAA. I was with the FAA yesterday walking our runways and trying to figure out cost-effective measures to fix our runways without doing a substantial project. Any new projects or inquiries lately? We just had an inquiry in the last couple days about a private charter jet. looking for a hanger, which we will make room for a jet to come in because more impacts on our runway, which means easier to justify our lengths and widths of our runways. Also, jets, they take a lot of fuel, so increased revenue.

So were they looking at going in one of the two corporate hangers?

They won't fit.

Oh.

It's a big enough jet. It'll go in the big... The big hangar? The big hangar. Luckily, we're building those other two hangars so I can kick the other two out.

Well, I appreciate the explanation the other day about the landing and the impact fee of how much it impacts us if we touch us down on that runway and how you calculate your fuel costs in order to try to attract more people to come in and out of that airport and how that impacts the length of your runway. And if you can have two runways or whatnot, and they can, they can dictate what you have just based on that. And then they can change things. And it's even, then it's a generational thing to get back to where maybe you were. And so just a lot of good information that, I don't know that we, I myself did not know until recently, so.

So I learned more yesterday visiting with the FAA. They class, they class aircrafts, obviously. So each class aircraft, you need 500 impacts on your runways to justify the length and width. So the length and width we have, you're looking at like a Gulfstream 550, right? Which is a pretty significant aircraft. We get some of them, but we need 500 of those impacts in a year to justify our lengths and widths. So if I can't justify it that way, there's other things I can do, and I'm working on some projects to get that so we make sure we keep our lengths and width.

So, Justin, is an impact considered a landing and then another impact a takeoff?

Correct.

Good. So we need 250. 250. Yep.

Sometimes you don't land properly, though. You may not be taking off. Knock on wood.

Yep.

And the airport board's already seen this?

Yes, this budget has been approved by the airport board. I made sure that was done prior to coming here. Obviously, we can make adjustments if needed and get it re-approved, but it is approved as of June, our meeting in June.

All right, Justin, while we've got you up here, I'm seeing no more further questions from us up here. I'm going to ask for any members of the public anything to add or ask. Justin, while he's here.

I just want to say, Justin, I appreciate your communication throughout the year. So it's made this, this is the easiest budget process I went through with the airport. So all your legwork, all your time, it's paid off and we appreciate it. So thanks.

Thank you. I was just going to add, Justin, that I appreciate you talking about trying to keep that length and width. That is something that we have to have, that we need to have in order to hopefully have more businesses come to this town because they are going to need that. We will have more jets if we have that ability. So thanks for working on that. Thank you.

Anything else?

All right. Thanks, Justin. Thank you. We'll end up going to our item number six. This will be review and discussion of capital projects fund budget. Lyle, it looks like you're going to handle this one. I got it.

Actually, I want to punt it over to John here. We have a little bit of a staffing shortage situation that came about, so bear with us as we fill in.

Lyle, you're on the letterhead here to handle it.

We'll divert. That's what I'm going to do.

I'm just giving you a hard time.

I'm just giving you a hard time. All right, I guess not. I'm going to practice reading Sheila's notes here for you. So the beginning fund balance decreases about $1.3 million in this projection, primarily due to spending bond proceeds on a flood control recertification and spending grant proceeds on the downtown gateway sign and the lighting. And we are budgeting almost $800,000 in miscellaneous federal grants. There's three that are identified, one for a community forestry grant, one for a conservation grant for the adult softball field, and one recreational trails program grant for the Winter Park sidewalk and bridge. There's a budget for $1.1 million for other intergovernmental funding. This is from the rural fire district's contributions for a fire truck and a tanker. Transfer in decrease of almost $340,000 due to a decrease in transfer of sales tax for the police station. In fiscal year 27, we anticipate we will have collected enough sales tax to fund the police station project so that Sales taxes will be diverted to the chaff fund for that future use. And then proceeds of debt of 2,575,000 is for flood control bonds of 1,380,000 and public safety bonds of 1,195,000. And then on expenditures, new this year, let's see, new this year is a transfer to the general fund mostly to cover council priority dollars to help with general fund operations and the yesterday apparently there was a question i've team remember about memorial field bleachers uh... jim and on she noted that on page twenty six while if you can go there towards the bottom it's budgeted that here for forty thousand dollars And the intention is to use the donations from Big Red. There should be, I think she's mentioned about $80,000 maybe in there. Is that about right?

That could be about right. Is that the burger money?

Yeah, the burger dollar. And so they're planning to use some of those dollars for that project. And that's all I have unless Lyle or you have any questions that I can't answer, but I will certainly try. I'm just kidding. I will just give it a whack. Come on.

He just gets right out of the chute. We've got to rake him over the coals about something. All right.

Any additional questions? Comments from the public on the capital projects fund budget? All right. Seeing none, we'll move to item seven, review discussion of the city highway allocation fund or CHAT budget. John, we'll let you take that also. No, I'm kidding. I'm just kidding. Let me make it up real quick. I'll pass it over to Steve. All right. Sounds good. Yeah.

As he's getting ready to point out to the folks that are new that the CIP was talked about in a full-length meeting a couple weeks back. It was in this part of the packet as well.

Because we went over this, right? I mean, a lot of it.

The CIP? Yeah. Yeah. Just to back up, it's the exact same thing as what we talked about previously. I mean, if there is changes in there, it's very minor in nature, be explanatory. But that's what we spent the hour and a half meeting on June 29th.

Yeah, right. So what are we touching on today then?

Nothing. I was just making it clear to the folks that weren't here before or tuning in that We're skipping over for not purposely skipping over this. Okay. Okay. It's because we've talked about it so much already.

That's right.

I appreciate that Yep, we're ready to go on chaff. Yeah Before I hit the the chaff revenue funnel just just announce here and there'll be a public Turn to your packet page 44. Yeah, I Are you ready? Yeah. Our one and six year plan public meeting will be held July 23rd at the library at 530. So just a short announcement about that. Yep, July 23rd at 530 at the library. And so we will update the public and the media at that time on that kind of active projects that are in design anticipate Seeing either next year bid out next year or potentially in construction next year City highway allocation fund revenue detail Projected projected revenue for fiscal year 27 four million fifty five thousand interest income up one hundred and one thousand to 246 and Inter-interoperating transfer in five hundred fifty thousand five hundred thousand of that is the sales tax revenue Residual coming in from the police station project the other fifty thousand of that is council priority That fifty thousand council priority is for use on railroad quiet zone We don't necessarily know what that is, but just to move that conversation forward we plugged in fifty thousand of CP dollars into the City Highway allocation fund That's the funding side. That totals $4,851,000 in anticipated revenue for fiscal year 27. Fiscal, let's see, 27 budget expenses. Building ground plant maintenance, $100,000. That is our mowing contract. $415,000, that is transferred to general fund to assist in funding the street department. Um, the CIP has $2,082,787 planned, uh, in expenses. And I will touch base quickly on those projects. Um, debt service and interest 737,581. Large portion of that is, is debt service on the Benjamin Avenue project. Total expenditures next year anticipated $3,335,368. Um, The delta between revenue, expenses, and existing balance then is $7,780,846. I'm going to skip over to the next page, specifically line 87, and just touch base here. There is a correction here, and I will point that out. That $2,082,000 in revenue here, this account 87 depicts where that is, how that is split up. $400,000 in street maintenance contract work. $200,000 flood control bridge deck. Those are design fees. The Benjamin Avenue project, there should be a line there for $150,000. That is carryover from this year. $75,000 for traffic signal heads, pedestrian actuated system improvements. $75,000 for the industrial road extension to the west. Again, that's part of a potential partnership with the county to look at that and do some corridor preservation for that project. Transportation master plan, $250,000. Yesterday we talked about combining that potentially with the comprehensive plan update. Vacate Phillips 6th to 7th and reopen Park. We have a $175,000 plan for that. McKinley Street, Tahazuka to 5th, moving that into a final design at $150,000. With that final design in place, I'd have to look at the CIP. I think it's out three or four years right now, but once we've got final design in place and we have a really good estimate of construction cost on that, We would look for outside funding to fund that, the actual construction. The Link project, Link Norfolk Raise Grant, we have $57,787 in there for a local match. SS4A grant, we had resubmitted a grant this year. That $250,000 is our match for that. With the with the potential annexation of Benjamin Avenue or the land east along Benjamin Avenue continuing. We do have budgeted to install streetlights and get our city streetlight system extended all the way out to highway 35. And then again that railroad quiet zone study for 50,000. So that's That's the total there. That total would go up that $150,000 for additional, the remaining engineering on 25th Street. Any questions on city highway allocation? Pretty straightforward.

I got one quick one. Well, I don't know if it's quick or not, but traffic signal head, pedestrian actuated system improvements, there's 75,000. And I know it's been brought up quite a few times by Sue Corey and I here occasionally on that roundabout in Norfolk Avenue does this have anything to do with?

Potentially putting those in there, and if not we get something that it's not specific to that But it could be used for that if that's where we want to put that the Department of Highway still has some say and what goes on out there They like to see you start with the less least amount of technology possible But we have talked to them about putting in the RRFB system around there. You do see that. That's becoming more popular specifically in heavy traffic roundabout environments. So, yes, that could be used for that. And that would probably, we'd need to do three of the corners, the north corner, the north side, the south side, and the west side. And that would certainly fund that. It's just something that's not going to go away.

So something's needed.

So what would be the steps to get that started?

It's a dangerous roundabout.

It's a very dangerous roundabout.

With the budget there, it's really just a conversation with the DOT. We sit down with them and say, this is where we want to go. We've had that plan in front of them already. So they're aware that there's a desire... We wanted to put some pavement marking in there first, potentially put those yield to pedestrian paddles up and see if that got us where we needed to be. But if that's not getting us where we want to be, we move forward with our RFPs. And they support that. They'll support that. We just need to get there okay.

Yeah, I'd like to see that move forward very quickly.

I would agree with Sue and Corey as well. The sooner the better.

Yep. Steve, the correction you were talking about that needs to be $150,000 for Benjamin Avenue, are you talking, is that M451-226? Under account 87? Yes. Okay, thank you.

Yeah, and with the design, with the deck project on redecking the Flood-control project there here in a in a couple years. No that'll add the sidewalk on the north side as well, so It becomes more important I think to get that The RRFB system in place over there You know Steve just because I know there's a lot of development going out that way and possible another housing addition along Benjamin 35 there

But we have existing streets, existing sidewalks today that we keep talking about in our numbered streets south of town, south of Norfolk Avenue. They're just dark. And so at some point we have to try and make that a priority. Just keep that on the front burner. It'll add a lot of value to those neighborhoods and make them feel better and safer.

Yeah, yes. The historic lighting levels that were used to lay out our street lighting system were pretty low. Yeah.

Steve, just one quick question. In the capital outlay, I noticed you're $2 million. less and it's a significant amount for the ending balance, increases the ending balance this year by quite a bit compared to last year's budget. Did I miss, what are we reducing on that this year? The reduction of the two million from previous year of four million in your capital 87 infrastructure budget?

You're looking at prior year?

I'm looking at 26, 27 fiscal of $2,082,000. For line 87? Line 87, yeah. It's just a significant amount, and it contributes greatly to the ending balance going up drastically compared to the years past.

All right, so we had budgeted expenditures at $4.17 million. Actual expenditures were $6.2 million. It's carryover. Some projects will carry over. If you might recall, we had a lot of carryover in our concrete repair into this fiscal year from last fiscal year. I'd say that's a big chunk of that. We had also bid out our mill and overlays. We had bid out our mill and overlays last summer and those didn't get done until this year. So it's just, it's a matter of, you know, when the work hits the books and when the work actually gets done.

I didn't know if you were trying to build that ending balance up for a significant investment in the following year or it just ended up that way at this fiscal?

It just ends up that way. So we have, and I've got it right here, so we run a 10-year, that's the whole function to the 10-year capital, or the 10-year CIP. This right here is the the 10 year CIP with expenses across those 10 years based on the 10 year CIP. And so this year, I've got a projected end of balance of 7.78 million. Next year, 4.3, following 3.8, following 3.3, 2031, 1.2, 2032, 1.2, 2034 it gets down to under a million dollars, so we look at That's the whole function of that ten-year CIP is to plan out all of those projects as we know we have a flat amount of cash coming in every year from CHAP somewhere around four million Plus a little bit of inflation so every year. We know it's four million in but every year you know the the total value of the projects that we're going to do go up up and down based on what that project is and It might be a million-dollar project. It might be a $5 million project.

In what year are we on the debt service, the $751,000 for Benjamin? That will... Just give me one second here.

That issued in 22... So this year is the last year of the five years of interest only. So we started paying interest on that in fiscal year 23. We did five years. This would be year five. Next year we start paying the principal, and that's $1,000,045,000. And then it ticks up a little bit every year after that. Okay. Any other questions?

Anybody, any additional questions on the CHAP budget, please come forward now.

Jim McKenzie. Just a question on 87 capital outlay. Last year we had $900,000 of street maintenance contract work and $500,000 of micro seal and armor coat. This year we only have $400,000 of overall street maintenance and contract work. It looks like a decrease of about a million dollars in overall street repair. Am I looking at that right?

Some of this year's dollars went to pay for the micro seal that just went in the ground. The micro seal and then we got a 1.7 million dollar overlay coming Not sure I understand that Well, we're using we're using dollars from two fiscal years for those projects So how much do we spend on an average year for overall street maintenance and repair We budget one Depends on the year, but we've been budgeting about 1.1 million.

So it looks like this year we're only budgeting 400,000.

Correct. Our street maintenance, I'm looking at the 10-year capital improvement plan. For this fiscal year, we have 500,000 budgeted. That's that line item that's typically been about 1.1.

I see 400,000 under the capital outlay on 87. Well, that's related to us. Isn't that the overall street maintenance budget that you use for fixing the streets in town?

Right. That is for a street maintenance contract work micro seal and armor coat. Let me look here, Jim. That is part of the 500,000 line item one. The other 100,000 is in the mowing. So when you look at the 10-year CIP, I have 100,000, 500,000 this year for miscellaneous street maintenance work by contract. So it's 500,000 here. 400,000 of that is going to that maintenance contract work, armor seal and armor coat, and the other 100,000 is right there.

So citywide, we're only putting $400,000 into repair of our streets across the entire city?

Other than special projects? Other than we have the mill, yeah, there's no concrete repair going on other than the $500,000 that we'll start to program through the sales tax. Okay. All right, thank you. Does that make any sense?

Yeah, it seems like we're, you know, look at the last two years, it looks like quite a decrease over last year, so I don't understand if that's a trend or where we're going with that.

That's why I asked earlier, we went from... Oh, yeah, go on. We went from $4 million to $2.some million in capital in that particular column. Right. Capital outlay goes from $4.17 to $2 million. That was a question I asked you, and then it contributed to the beginning balance earlier. So my question was... Why was that down? I think you're noticing the same thing in general.

So I'm going to go back then to the 10-year capital plan. That's what feeds that. And the 10-year CIP for CHAF. The 10-year CIP for CHAF in fiscal year 27, we're spending $2.1 million. In fiscal year 28, we're projected to spend $9.6 million. In fiscal year 29, $5.6 million. In fiscal year 30, 13 million. Fiscal year 31, 4.3.

Is there a specific line item in that CHAP, excuse me, the CIP budget that shows contract street repair?

It's the $400,000 in chip seal and the $100,000 in mowing.

So there's no panel replacement?

I mean, there's no real... There's no. There's no concrete repair project this year.

Okay.

The sales tax dollars... I think, Steve, what you're saying, from what you just said, you're pushing that out to the... You lump it together so the street works in a continuous fiscal throughout the following 10 years.

Yes, that's what it's a budget system based on We've got a flat budget system based on a time frame and not a continuum the purse aren't physical right the entire 10-year CIP for parks Streets, it's all you know we have 10-year cash flow for Kino 10-year cash flow for CI For city highway all right when you hold on we're missing the point here the point the question asked is what are you budgeting per year per street improvement and

It's hard to follow on this because if it's spread out over 10, then it doesn't look like each year it's the same. It's going from 4 million to 2 million.

The 10-year CIP feeds in to year one of the City Highway Allocation Fund. So year one on your CIP is what you see here for next year.

So what you're saying here is for the next four years, we're only going to spend $400,000 a year on street maintenance.

No.

Out of that line item. Yeah, which is basically the overall street work on the entire city except for special projects.

Again, I'm going to go back to the 10-year CIP, and I'll pull out the projects that I believe you're looking for.

I'm not interested in specific projects. I'm just saying what are we spending across the city to do overall repairs? It looks like we're going down. We're a million dollars when we go five years out. I think we were a million dollars prior years, if I'm not mistaken, but I'd have to go back and look. But now we're down to $500,000, really only $400,000.

Correct. And the entire picture is, again, the 10-year CIP is the entire picture for the next 10 years. So when you look through there, all of the projects that are listed in there, That's where the $4 million plus I think I've got $5.5 million in here in sales tax, $7.5 million in sales tax dollars.

Yeah, I understand that. I look at the city overall, and I understand the individual projects, but it's a pretty small amount that gets spread around the rest of the city. So that's my point.

That that 1.1 million that used to be 750 up to about 2017 that was 500 that was I think that was around 500,000 We pushed it to 750 and then we pushed it to a million and we pushed it to 1.1 it it's I Don't know again. We have 526 Lane miles of streets many of them need help. I can't tell you right now What's going to need you know is there going to be a failure next year? where I need to go in there. When we did 15th Street or Monroe down in front of Love's truck stop here three, four, five years ago, that's where that came from. We had a failure. We didn't have a line item in there that said Monroe from 13th to 15th. It came out of there. So that's a fund that allows us to react on an annual basis based on an immediate need.

The concern that I have is when the citizens approved $5 million roughly of additional revenue through sales tax to fix the streets in town, I think they were assuming that that $5 million was gonna go across the city to address the multitude of issues across the city. And it looks like that's not true.

I invite them to come talk on July 23rd at the one and six year street program and present their concerns, their arguments, That's where we digest that that conversation then gets folded into the 10-year CIP in the next cycle Okay, well, that's but that's my feedback for today. Yeah, so that that's the function You know come to that one and six that's where we want to capture that input We take that input. We roll it into the CIP beginning in February. We take that we roll it into the budget Steve I think

For the way we're thinking, capital improvement projects are large projects that take large sums of money. And I think some of that question from what I'm trying to gather or hear from this is, how much are we budgeting for repairs that happen throughout the city throughout the year? And it seems like there's somewhat of a disconnect of $400,000 that's shown on here, and then we talk about capital improvement projects, but Those are projects, and what do we, do we budget, maybe some of it's in street budget, I don't know, but do we budget a certain amount of just repairs to do in general?

The general street budget does have repairs. They're doing 1,500-ish, 1,500, 1,600, 1,700 square yards a year. We've been pushing up. I think when Will got here, we were doing around 1,000 square yards a year, and we've been pushing that up. There's a street repair component that they do, and then there's a street repair component that we do by contract. Outside of things like the traffic signal heads at 75,000, let me just look here quick. This year, we got the Norfolk Avenue flood control bridge deck Transportation master plan yeah, I'm not going to argue that there isn't a lot of concrete repair by contract in this fiscal year We had funding for mill and overlay last year we've got the 500,000 issue so again we used When we put together the overlay project, the budget for the overlay project, the actual project budget, used funding from two fiscal years for the $1.7 million asphalt overlay and the $500,000 chip seal. So we had about 2.2 million in that, and we used two budget years to fund that. And yeah, based on Based on the cash flow you know the 10-year cash flow We had to pull back these next four years that 1 million dollar line item up there line one and two we had to pull that back to 500 so we didn't go negative the other thing we did is a function of the budget I Believe we had 200,000 a year and council priority dollars that were coming into here for the last though That's been happening about probably the last four or five years and that was projected to go out until 2034 ish And so just as a function of the whole budget and pulling back count we pulled back council priority out of here So that was about 2 million and council priority over the next 10 years that came out of here Steve just for clarification.

I agree with Jim on how the voters voted for that. I think they're looking to I Use sales tax dollars to go to pepper our community with improvements and not for a project per se Is that kind of how you envision it?

There's 1.5 million of that that's going to go to the Norfolk Avenue bridge At least six million that six million is for residential street repair. I And that's programmed, I think, over the next three years.

Why are we kicking $1.5 million to the bridge instead of just switching that up with different funding source through the chaff and utilizing the half-cent sales tax entirely for street repair?

Again, we can do that. You know, if they're from just a look, it's all in the same pool. We had to identify...

I think it might be better to do it that way just simply because... of the nature of the way it was explained to the voters that we probably need to just make sure that's all those funds are used for street repair. I know it all comes out of the same. It's all going to be, well, it's a little bit different because it is a absent sales tax increase. It's a, it's a different funding source than chaff. So separate the chaff with the bridge repair or a different way of doing the bridge repair.

It, it, yeah.

And which, which, uh, Norfolk Avenue, just the Norfolk Avenue bridge, um,

East Norfolk Avenue. It also has to do when those funds are available. So we can do that, but it's going to kick the street repair down the road because I need to find that million dollars. If that's plugged in here in 2028 or 2029 and we say that's going to go to streets, that means that it's going to go to streets in 2031 or 2032. I think probably the best Best case scenario probably just either play that out that way where the we could that way we can point to what was done with those funds You know because I would look at this bridge allocation is a yeah And I real and I realized you know we said the residual while the residual was going to go to streets at the time We thought the residual was going to be around five million As as we're able to is that's looking like it's going to be coming closer to seven and a half and I felt comfortable putting a million and a half into the bridge, but I'm not. I hear the direction, and I'll just certainly do that.

Especially for approving the budget and keep clarity out there when things are. things are being spent, that's probably the best way to roll.

I think one comment I would have in my early time here is, you know, looking at the cut sheet, the priority, identify three items on that that is eliminating transfers to capital improvements of nearly a million dollars will impact our ability to accomplish the 10-year plan. So that's something to keep in mind when you're trying to fund those capital improvements, those transfers into that fund from general fund are going to impact our ability to accomplish those.

I guess what I would hope to see would be if we've got $4 million a year in chaff and historically we've spent a million of that on overall street repair across the community and now we've got an additional $7 million of sales tax revenue and it'll over the next four years, or I guess it's not four years, but I would expect to see, if that $7 million is over the next three years, I would expect to see the million that we currently previously spent every year, plus an additional two million, I would expect $3 million a year to go to general street repair across the community. I think that's what the citizens envisioned, and that's my concern that I'm not seeing.

Again, I'm going to say, I think, you know, I'm going to come back and pound on our 10-year CIP. Our 10-year CIP was presented here a couple weeks ago, and I just encourage everybody to understand what that is and how important that is. We can move those dollars wherever you want. What you see is what I believe is the priority for those dollars. I'm not opposed if you guys want to look at that. Jim, you want to look at the 10-year CIP? Those are the projects and those are the dollars. If we want to move something around and find $500,000 to put back there for 27, 28, 29, let's find it. But you have in front of you where those dollars are currently being spent. So what don't we want to spend those dollars on to re-accomplish that? I can't put new dollars in there. Right. Yeah. Understandable. Yep.

Anyone else? All right. Thank you, Steve. And now I'll move to item eight, a review and discussion of the water fund budget. Chad will come forward.

All right. Well, thank you, Mayor and Council. We're going to start on page 50. And we're going to start off with a little bit of the water revenue, and then I'll just move into the water maintenance budget. So we've got a beginning balance of $7,917,699. A user fee increase of $232,600. This is related to an increase in water usage, along with a 5.5% a 5.5% rate increase. That rate increase is for approximately 3% of it for the cost increase as far as operation cost and then also salary and cost. And then the 2.5% is left over for capital improvement. We've got a couple projects coming up about three or four years out, about $9 million. And we're trying to put a little extra money in the bank and keep that bond issuance down. The other thing on the revenue, you'll see a decrease of $104,700 there on the line of the interest income, and this is due to because we have a lower balance in the bank. So at the very end down there, we had a total revenue of $4,690,927, leaving us with a total funds available of $12,600,800. $12,608,626. And then we'll move into page 53. And you'll see, I don't know if you've seen much on this budget here, but not a lot of action going this year because we got most of our projects done. So I'll just kind of touch base on some of the highlights here. So on, we'll just go right here on What page you got there? 53 right now. All right, let's go to 54. Okay, 54. Line item number 55, you'll see an increase of $7,800 there in dues and publications. This is mainly due to the CCR report that we did this past year. I think that was a good quality report. It has an opportunity for us to sell the consumer index report and also has the opportunity for us to promote the water department. And then on total administration overhead, you'll see a decrease of $23,161. Down in the capital outlay, you'll see a decrease of $7,200,737. And I'll touch base on a few items of that one there. So if we want to turn to page 62 in the capital outlay, building improvements number 82, we have $230,000 in there for the service shop at the Westwater Treatment Plant. $175,000 for the fiber replacement on Benjamin Avenue. $340,000 for a meter upgrade to AMR meter system. And then $190,000 roughly for the East Plant underground, power underground. Then in the 84 account, We have a service truck that gets replaced this year. Those are on a seven year rotation. Then 89, as I said, we got most of our projects done, so you don't see much in there this year. The biggest project we got is to extend a water main from East Omaha Avenue to basically where Prime Stop is located at. $242,836, that's for mostly the design fee. And then we got $300,000 in there for filter media replacement at the East Plant.

Any questions? Just one question. You said most of your projects are done, so most of your debt service has been issued?

Yes, yes. We don't have any debt service forecast this coming year.

Okay. Yeah, because that does drop from 1.2 to 950,000.

Yeah, I didn't reflect on that on the front page there. Where is it located at here? I think it's on...

That's on, sorry, 63.

Yep, yep, back on 50, you'll see a $3.8 million deduction there on debt services because we're not issuing any debt. We had it forecasted, but we're not issuing any.

Okay, that's why that changed. Yep. Okay, all right.

Hey, Chad, can you, you have 550 hours of overtime, projected overtime. Each year, what do you actually use in overtime?

So we really keep that down as much as we can. So I think most of the time our overtime is running right around about that 200 hours. and a lot of that's related on staffing. So currently right now I've got two operators out. One's out for a workman comp issue, one's out for another issue. So we've got some coverage going on right now, so we've got some overtime being spent. But most of the time we keep that overtime very minimal.

So on 82, you got the building improvements, relocate service, shop west for 230. It was at 290 last year. Correct. And I thought we were, if I remember right, we rejected the bids because they were too high that they came in higher.

The bids were actually incomplete. Both those bids came in. There were some flaws within the bidding process, so that's why we rejected them. I'm looking at trying to get those back out before the end of this fiscal year and possibly get the concrete portion of it done before. And that's the reason why it's reflecting that 230 right now, because I'm hoping to have the concrete done beforehand. So you're hoping to get the 60 done? Yes. Good. Anything else? All right. Thank you. Thanks, Chad. Here, keep that there.

Anybody have any questions for Chad? forward now.

Jim McKenzie, I just have a question on what our cumulative percentage of water rate fees are over the last 10 years as compared to the rate of inflation.

I can bring that up. It'll take me a second.

Well, let's...

Yeah, let me... If you're working on that, we'll keep moving forward here. We're moving through budgets. I'll pull that up, and then we can speak about that.

And that's something we can bring up when we're approving budgets, too, at that time.

Yeah, I mean, if the council would desire to look at projected water rates, we can certainly bring that up.

Well, we have to approve everything. Today's a review, so I would put that in the plan to have that presented at the approval time. So... We're on to the item nine, sewer budget. I'm sorry, the sewer revenue budget. Right, nine? Yes. Should be on page 67.

And this is gonna potentially pull us back into that conversation again on rates, but I'll get through this and we can go to questions. So I'm going to present that the sewer maintenance revenue just as a as a function of some of the some of the capital contributions in their Sewer revenue miscellaneous federal grants form and anticipating four million nine hundred nineteen thousand that is that is the Federal grant that we're currently working with the state on 38 million dollar grant That would be some design fees through this next fiscal year User fees are projected at six six million four hundred seventy five thousand and that is based on an eight and a half percent increase in residential and industrial rates Other things pretty straightforward there will go all the way down to capital contribution and The capital contribution there, that would be $1,250,000 in capital contribution from industries related to the wastewater plant expansion. The other $400,000 is from test to towel for the effluent reuse project and the extension of our adding a sewer reuse line running up Victory Road. So Anticipate about 400,000 from them this year on that project Any questions on revenue have pretty much sums of revenue Yes, yes, yeah 1 million 250 from dairy industries and 400,000 from total tests and Anything else? Any questions on that? Pretty straightforward. Any questions in terms of looking forward on that in terms of sewer revenue? You just want to hold off on that until budget approval.

Anybody have any questions for Steve on the rates at this point in time? Yeah, you come forward now.

And I know we'll talk about this in the future, but I question a residential rate increase of 8.5%. I mean, what's being done out there is specifically for one industry. I've heard that we have the capacity for a town three times our size without the industrial use of major...

Customers so if we're going to spend all that money, it doesn't seem to be fair to me to have the residential customers subsidize the needs of that business so the the project The project is going to increase capacity for residential commercial users by a hundred percent Currently out there when you take our system and split it up we have somewhere in the range of fifteen to twenty thousand we would refer to as pounds and It's probably closer about 17,000 pounds available for residential use and About 17,000 pounds. It's out there. That's being used by by industry And that's all of our industries This project a heavy portion of the project Yes is focused on pre treatment for industry, but we do benefit in the project by getting a hundred percent increase in capacity available for Residential the residential side of the community and the commercial side of the community so there's value there to us in 2020 we had a study done that showed we needed by 2040 we weren't they were in we needed to plug in around 45 million of for just general organic growth of the community. We had an industry grow in the community in 22, 23 that's pushing that. And now we have an opportunity to capture some federal dollars, some capital contribution from industry, and grow our capacity again for that residential commercial user by 100%. So that's where the value comes to the to that residential customer from a rate increase perspective.

All right, anything else? Let's move to item 10. Let's review and discuss the sewer maintenance budget.

All right, this one here is really light this year. As you scroll through that, you don't see very much changes throughout the whole budget. It's pretty much equal to last year. About the only biggest one you'll see is on the capital outlay, increase of $108,634. And again, that's related to the meter upgrade. We got that $340,000 in both water and sewer budgets. Outside of that, that's pretty much what the sewer maintenance budget is this year. Again, it's pretty much no major changes from last year. Any questions?

Any other questions for Chad? Anybody here today want to ask? No? Okay. All right. Seeing none, any other questions? Thank you. Anybody else have a question? Let's move to Item 11, Review and Discussion of Water Pollution Control Budget WPC. Rob will be here to do that.

I'll keep this quick. Just kind of give you some highlights of the water pollution control budget for your consideration. We've had the same increases as other divisions in fuel, oil, natural gas, insurance, etc. But we do have a 12% decrease in our 41 account under electrical for $40,876 in electrical costs due to staff using AI and ORP technologies to grow more resilient bacterial line, more efficient use and run time of dissolved oxygen blowers to create what we call super bugs. Then we move down to the account 46 which is kind of all grouped together and that's Grounds and plant and maintenance and that is down 6% or 6.96% or 51,000. This is due to completion of several projects and also with the lowering of the electrical usage. Can jump into the capital. This is kind of really what we got going on out there. Capital is up 1.45%. are from $7,421,000 to $7,529,000, and includes some of the following projects, $250,000 to finish grit removal building project, half a million for Laguz Digester SBR addition, gas handling systems, biosolid upgrades, $200,000 for industrial separation of sewers, $635,000 for land purchases. $130,000 for biosolids blender. This is our blender. It's 30 years old. $200,000 for SBR influent valve replacement. Again, these valves are 30 years old. It's time to replace. And then we have that $400,000 that Steve talked earlier about, the test live oak project for effluent reuse. Just a little bit of note today on the flood wall, we had a commissioning and a startup of the screws. That project is kind of winding down. It's right on target, right on target for pricing. Also, the grid system and plant premises are getting closer to completion. We've had some delays in receiving vortex equipment, but the grid separator should be up and going in the next few months. On that note, I'd entertain any questions over WPC.

Rob, I see you have 1,200 hours of overtime. What number do you usually use out there?

It's usually a lot less. We're probably right around that 600. So what we have is because we have to do sampling now on the weekends for Highland Dairy and Actus Nutrition. So those are overtime hours.

Yeah.

Because my guys don't hold money through Friday. So same way as everybody, we're pretty limited staff. So if we have somebody out that gets hurt, we want to make sure that we have the hours covered. Usually we're down there pretty well. We don't go out overtime. Guys typically get six hours of overtime on the weekend. That's one guy.

Okay.

Thank you. We are currently full staffed. One time I've been that way. Everybody has an operator, too. I have... Four guys now are operator four, and that's a tough test to do. All the other guys are working to become operator fours, which is a great thing for the city.

How often do you have to show up on the weekends?

I'm there every weekend. Not for very long.

Other questions for Rob?

Just on the land purchase I see they've got land purchase of the 495 which is the contract that we've just voted on Then we got land purse at 140 for a share with solid waste Yeah, so that's for some property this to the west of us that could become available that we need to own So it's been in the plan.

It's been the CIP. Oh, right.

You did mention that yeah, yeah, yeah, I'm sorry Just kind of threw me for a loop a little bit, but all right. I got it. I remember you talking about it. Sorry about that All right any other questions here We've got Rob up here. Any members of the public have any questions? All right. We've seen none. Rob, thanks for your presentation. And now we'll move on to number 12, review and discuss solid waste management fund budget. And that would take you to, let's see, you should be on page 94.

Revenue is first, it looks like.

Right.

I'd like to introduce Tyler Bonzel. He is the new Rob Mercer, the manager for the solid waste. He's been, what, a month? Two months. Yeah. So this is all new to him, but we're going to put him under the fire right now.

Thank you, everybody. As he said, I am Taylor Bonzel. Let's start it right in. For revenue, we have an increase of $4. 4% onto our fee, our tipping floor fee. So that's going to affect, I'm already lost. Sorry. So that's going to increase around $3 per ton. Let's just read that. Just read this? Yeah. Okay. So the Solid Waste Management Fund is entirely supported by user charges at the transfer station. The disposal fee will increase 4% effective October 1st. Changes for this service increase $194,858, which is 6.73%. due to the increase of rate. You could see that on page 94. Go to 96. Page 96, we had a decrease of $600,003. This was for a better guess of how much diesel fuel we are gonna use. So that's a decrease of 25%. We also have a decrease in natural gases of 15,543. This is because we are no longer using the incinerator. We also have an increase of 25,000 on our building maintenance. This is for the overhead door maintenance and also the trash fence in between wastewater and solid. And under that is $40,000. That is for trailer and truck repair on our fleet. Go to page 97. We have office supplies went up a little bit, 4,435. That's for purchase of a computer and printer out at the landfill. And we go to 84. We'll break that down for you on page 104. Yeah, page 104. This is for a purchase of a Roloff truck, a used one, which we are also going to use at wastewater with them and Two new boxes that'll be a hundred and eleven thousand if you combine them also have a Payloader that we're gonna purchase from streets That'll be thirty thousand and then another over the over the road truck for a hundred and fifty five thousand This is to replace our oldest one in our fleet How many over-the-road trucks do you have out there I see you bought one last year, too Yes, we have four in total. We just decommissioned one, 16A. The new purchase is to replace 16B, and 16 means it was from 2016, so they're 10 years old. Okay.

That's when we started taking over from private contractor. Right. Was that 16? Yes. Okay.

All right.

Any more questions?

Okay. As far as the rates go, when are we voting on that? Does that go with all the rates? When will that come in front of us? Because that's after the budget process, and that's a little bit different for your budget than most. Okay. September. Okay. Yeah. So that will go into effect. Yeah.

We usually bring a, a fee ordinance forward in the past. It's been asked that we not group all of them together. We try to separate them out. So we're anticipating one in September, September.

Okay. So about the same time we were looking at the budget. Okay. Perfect. Thank you.

We've got $50,000 in to replace that knuckle boom, which seems to be an ongoing headache since the day it was, or the first year it was put in.

Yes, this is also mixed in with the CIP. I think it's a larger number later on.

Stephen?

Correct. So hopefully we can replace it later years.

So is it something that we might want to look at getting away from? From what I understand, when it went in, because I had some direct contact with it at that time, that it was kind of unique to Norfolk? Yeah. So did we buy a pig and a polk?

We've done quite a few repairs on it this year, if everybody has noticed. There is plans to replace it and put something newer, but I can't give you the exact date.

In 2028. on the CIP, 2028, between 2020, well, this year, yeah, we have 50,000 this year. Next year, we have 450,000 in there to replace the knuckle boom. So that knuckle boom, that's the only one that exists in the world. It was custom manufactured for our facility It really hasn't performed since the day it went in. We've put a lot of money into that.

Again, my question is, do we need to get away from it?

Yes, we are going to move away from that.

Absolutely. Because I am assuming other places are using mobile pieces of equipment?

Some use mobile. Some use a system on a track that slides back and forth back there. But we need to use something that's more standard within the industry and not something specific to Norfolk, Nebraska. And that 450, we anticipate there's going to be building modifications that need to be made in order to accommodate whatever that is. So that's why it's 450 in there.

Any other questions for Taylor?

I just want to say welcome aboard, and I'm glad you got your feet wet meeting all this.

Thank you. Enjoy that brown beard. Eventually it'll just turn white. With usually about six months, it'll be pure white. Six months. Make sure to sign up for Santa.

And turn white quicker than that. All right. On to item 13. It's review and discuss the stormwater utility fund budget. Steve, you'll lead us in that conversation.

Yes, yep, I've got it here. Right off the bat here, I'm going to make a couple edits in this. On the line 34-310, we're going to move that down to miscellaneous. What that represents is... Royalties some sort of a fee that's going to come from the sale of dirt from the construction of a wetland I Think we structured under other I asked it to be under other funding. I think it probably belongs more under rent or other revenue So I will be making that change In addition to that, we have use fees anticipated, $314,736. That really hasn't changed here in the last couple years. That's based on a $2 fee per residential customer on their water meter, $6 fee to commercial customers on their water meter, and $6 fee to industrial users on their water meter. That's where that $314 comes from. Again, there's some capital contribution in there related to stormwater fees from subdivisions. $14,000 in interest on our account. So total estimated revenue, $483,936. Total fund balance, $1.1 million. Rolling over to expenses. Not a lot of change in personnel. I'd say just general cost of living ranges there. Uniforms, we did increase vehicle fuel and lube a little bit just based on price projections. Office equipment maintenance. We will be reflying the city with our aerial photography. Historically, we have not asked the Stormwater Fund to contribute. This year, we're asking them to contribute to that and travel and training for the staff on that. So, again, this year, we just spent the better part of a week with the EPA in the office pointing out some deficiencies in our stormwater management program, our municipal MS4 program. And so we are anticipating some increased training for staff, not just within the stormwater area, but all staff within the city. And so we've We'll accomplish that through here. Any questions on that? Insurances, admin overhead, no increase, capital outlay. So we'll focus on capital outlay. We do have in the budget two land purchases estimated at $100,000 apiece. Okay. One of those in the northwest corner for regional retention and one in the northeast corner of the community for regional retention. Additionally then, we have 125,000 for regional retention citywide. We've been working on a regional retention system for the city since about 2015. We have a report on that and anticipate Again, even based on this more recent EPA conversation, moving that forward. So these dollars potentially could be associated with some land purchase, temporary easements, permanent easements associated with regional detention. The 50,000 for regional detention 37th and Eisenhower those are some engineering costs 50,000 for East regional wetlands detention again. Those are some engineering costs 250,000 would be for the north the Southwest wetland bank and Again about a somewhere around 150,000 we're expecting to recapture from the sale of dirt for borrow So that totals 510. Any questions on that? I think there's a lot of interest in that from our developers. It kind of removes that burden from putting little retention ponds within all these little subdivisions and focuses that into larger retention facilities around the community. Skyview is a good example of regional retention. They don't have to be that big. That's a really big version, but Um, it's a, it's a good example.

All right. Any questions for Steve? Anybody want to ask Steve? Anybody got any questions for the public? All right. Seeing none, let's move on to number 14, review and discuss debt service fund budget.

And John, you'll be leading us on that. So, uh, Again, I've got some good notes from Sheila, thankfully. The budget keeps the property tax amount the same as prior year at just over $1 million. TIF tax revenue decreases by $14,000. We anticipate McIntosh Phase 2 TIF bonds will pay off next year, so this decrease will be in the TIF tax revenue. There's a transfer in of council priority dollars of $32,000 to pay off airport debt. And then on to expenditures. Transfers out increased by 24,000. There's going to be an issuing of some various purpose bonds before the end of the fiscal year to pay off. Outstanding bond anticipation notes. The increase in transfers out is the general obligation portion of those VPBs that we've got. And then debt service decreases by just under $50,000. No new debt was issued in the past year. And the decrease is due to the decrease in amount of outstanding airport debt. And so the projected ending fund balance will increase about $350,000, which can be used for future debt service. That's all I have.

Any other questions for John? Anyone else? Okay, I see none. We're at item 15, review and discuss special assessment fund budget. And John will lead us again. We are on page 125.

Exactly. Special assessments budget. has six separate budgets broken up by assessment districts. We'll go over the summary budget. During the past year, there was assessment of one paving district, three water districts, and three sewer districts. This is the reason for the increase in special assessments levied and special assessment interest. We're budgeting $4.35 million for proceeds of debt. This funds the capital outlay we've budgeted And on the expenditures, let Lyle catch up. There we are. The other professional fees decreased $20,000, which is for bond issue costs. The prior year included bond issue costs for various purpose bonds that we'll be issuing before the end of the fiscal year. And then there is just a little over $4 million budgeted for capital outlay. This is $240,000 for a sidewalk district on 5th Street. $2.4 million for future paving districts and $1.5 million for future water and sewer districts. So debt service increases about $285,000. This is debt service on various purpose bonds that we will issue before the end of this fiscal year. That's all I have.

Steve, for that project on Fifth Street, what's going to be the funding source for that to pay that bond?

Assessments.

Okay. To just those property owners? Mm-hmm.

Okay.

All right.

Anybody else have a question for John on the special assessments? All right. Seeing none, we will move on to 16. Review and discussion of LB840 Economic Development Budget Fund.

And Brooke's up here to do that.

Good evening, Mayor and Council. Brooke Anderson. I'm the Interim Economic Development Director for the City of Norfolk. I will start with LB840. Last year, the property tax collections for LB840 was fiscal year 19 and 20. This program is winding down. We currently only have one outstanding loan. We anticipate this business will meet their job retention requirements in fiscal year 26-27. At that time, their loan will be closed out and 99% of their interest will be paid and refunded to them. This will leave approximately $4,454 remaining in the fund to be used for economic development. After this is spent, the fund will be closed. Any questions?

Pretty straightforward. Anyone have any questions about LBA 40? All right, seeing none, we'll move on to 17, review and discussion of economic development operating fund budget.

So I will start with the revenue portion, the enclosure 17, page 147. Per the agreement with Madison County for fiscal year 26-27, The funding amount would have been $212,180. Due to not being fully staffed this year, there was too large of a carryover, which is over $100,000. So the funding amount for fiscal year 26-27 is budgeted to be $177,86. The city matches the amount that the county funds plus there's an extra transfer budgeted in of $90,000, which would be the amount of the city's share of funding had the funding continued under the prior agreement. We move to the expenditure side, which would be page 149. Starting with personnel, the personnel costs show a slight increase of $45,908, or 12%. Some of that increase shows the new employees having family health insurance coverage as opposed to former employees having just single coverage. There's not many changes from line items 21 through 64. For line item 68, it would be page 154. The other professional fees, $40,000 was approved in fiscal year 25 and 26 for the site I just sorry, the industrial site identification study, which was not initiated due to limited staffing. There's also $40,000 for a retail recruitment consulting, which was also approved in fiscal year 25-26, however, for the same staffing reason was not initiated. Retail consulting and retail recruitment was one of council's top priorities in the NPPD strategic planning work session. And the final item is $2,500 for a trails economic impact study, which is for Bike Walk Nebraska. And that's completing the first phase of a statewide study on the economic health and funding impacts of multimodal trail use across Nebraska. And I will close by saying that economic development is one of those areas where work often happens long before results are visible. It's planning, preparation, site readiness, business outreach, and relationship building that positions Norfolk and the Norfolk area for future opportunities. Communities that are prepared are the communities that are able to compete. If we want Norfolk to continue to be a forward-thinking city that is open for business, this work has to continue so that when the next opportunity comes to our door, we can show them that we're prepared, capable, and ready to move forward. And I'd be happy to take any questions. Good. Thank you.

Yeah. Any questions for Brooke? All right. Seeing none. At this time, I don't know if everybody knew this, but just to offer a moment of recognition or silence for Tim Ernst. He passed away recently, and he was here quite a bit at our council meetings and offered a lot of information or contributed to the meetings when he was here. quite a member of our community, was big in the Lions Club, and it's going to be missed. So, just take a couple minutes here, and we'll just offer some silence. All right. At this time, I'd like to thank everybody for being here this evening, and we will adjourn at 636. I'm sorry, 536.