Pledge allegiance to the flag of the United States and the Republic for which it stands, one nation liberty and justice for all. You have the agenda in front of you? the motion to approve the agenda for tonight. 2nd. Motion to approve in a second. Any further discussion hearing done. Roll call please. If you're time show. Yes, Schober, yes, roarra, Mayor Frelich, yes. A new business long term financial planning. OK, um, Justin and I, I asked for we're gonna take in this one, He will, he will fill in the color where I have missed some gaps. Long-term financial planning, uh, just to summarize, the, the budget planning process is a three-step effort. Uh, the first step was to develop the long-term plans for the city for personnel, machinery, equipment, public facilities and infrastructure, uh, for the five years of 2026 to 2030. Uh, step two is, uh, the step that we're in right now for the Budget Finance Committee. Uh, where we have, um, And develop that long-term financial plan based on the plans that were uh presented by departments and discussed. Um, through a number of working sessions, and step 3 is, um, Yet to come, but it will be uh the result of the budget and finance committee's work in developing the long-term plan as it then goes to formulate the 2026 budget. Starting with long-term plans, um, just to summarize a little bit further, from January to April, uh, the city commission conducted seven working sessions with department managers and engineering firms to review and discuss the preliminary preliminary long-term plans for 2026 to 2030 for personnel, machinery, equipment, public facilities, and infrastructure. Um, this month, uh, the Budget and Finance Committee met twice to review and discuss funding recommendations for the city's long-term plans, uh, Today, May 27th, is the final working session uh with department managers and the Budget Finance Committee will be, uh, presenting some funding recommendations for the five-year plan. And we've got some handouts. Pass off the personnel and have requests that have been reviewed and recommended for um funding by the Budget Finance Committee. Just wait until everyone gets one. Mm That's it's just really. OK, the items that are highlighted in green are those that are included in the city's long-term financial plan and um They are also projected to be sustainable based on the city's uh fund balances and and res over the five-year period. Um, you will note, um, on page one. For personnel request in our police and fire department, we actually roll those 10 years as one of the recommendations is to fund new police officers and career firefighters out of that 1.5 cent sales tax of which um the city would need to revise the resolution for that. um, but because um of the Volume of positions requested, Justin and I felt that it would be um We had to do our due diligence on this one, and we actually rolled those scenarios out for 10 years instead of 5. the other thing I want to point out at the very top, you will see a position highlighted for real property appraiser that only represents one position. It's one position with the fiscal impact rolled out all 5 years. It's not um a real property appraiser position, a new position each year. It is just one position with the fiscal impact rolled out, which includes salaries and benefits. Um, for those departments that, um, Don't see some of their items highlighted, uh, do not be discouraged. Um, your request will be reconsidered for funding during the city's long-term financial planning process uh next year. Um, so if these si if the items that are not highlighted are still priorities at this time next year, they will be reconsidered for funding. But those that are highlighted in green for those at the budget finance committee felt that it could sustain over that time period. Any questions on that? Hey did you maybe wanna. Did you admit that to touch on what the discussions we have for the fire department. They should how many stations we could staff with the green itemspar Uh, before, before you jump in, Mitch, we, we did sit down with, with M Mitch and just talked through, OK, with the eight additional conditions highlighted and ranged for the fire department and the In the fire department staff and operate 3 fire and I'll I'll let Mitch speak to his thoughts on. you. Yeah, so we did look at it and I kind of crunched numbers Thank and uh so if we were to add 8 we'd be you say better than we are today, but the 9th would really be beneficial because I we have. Our staff would be divisible by 3. We run 3 shifts on 3 stations, so it waits for a shift scheduled. Um, we, if we had that we would run. 3 at one station, 3 at another station. And to at the other station because there's always one firefighter. Off with either sickle training our reductions cause all the time works. That's. we, we could do it with 3. At one station, 3, another 2 at the they have to pick the station. Not staff. It would be better than we are today, so. And Fire department is looking at applying for a For grant positions. It's a huge thing that I completely forgot about. Yes, as of Friday, the federal government did open up the safer grant uh for staffing assistance to hire firefighters, so we've been working with the finance department on what number do we apply for. We've been successful in the past with that. It's very similar to the cops grant. Um, they've had, I think 4 or 5 positions. In the past 10 years, 15 years that we've been successful. So trying to figure out what that number is. If we were successful, does it move the number out? Get to the absent sales tax where for firefighters or what's sustainable if we hired them today what we have. Place form a Station Station 2 thing so we're trying to decide what number of firefighters apply for through Greg and just Jim. I understand. Now these numbers here, are they salary numbers, are they salary and benefits together? Correct, salaries and benefits combined. So when you look at each one, so for example if you go into the party party and the first one you got 89 N each one goes on, but that's how much would be added each year to that budget to keep that position. That's correct. I understand. I know what symmetric means, OK. So if you get the safer gran. And with that grant we would hire. Say 6 more. Potentially I mean we haven't, we haven't run that exercise yet cause but when we met with Greg and Justin, they took the half cent sales tax and said if you hire 12, the original request for, you know, in year 3 I'm just making up the half cent sales tax is broke, so when we said that doesn't make sense if we hire 8, the half cent sales tax will be able to sustain the majority of that, right, um, you know, with the assumption of doing 3 this year, 3 next year and so on. If we get that safer grant, we would have to calculate. What the, where the sweet spot is. Hiring To have staffing for Station 3, but not just hiring to hire people either and if we time it right, then we can. Take the burden off the front end of that half in sales tax fund. Maybe slide it out a couple figures to fis. and that's say for grant information or the email from Mitch about that came after the budget finance committee had had a chance to, um, this was just Friday, yeah, yeah, so we, we really didn't have a chance to quantify what impact that would have. So it always be positions. Of the highlighted green ones. So there's 8 highlighted green ones with say an additional 6 would be. Potentially we don't because if it still goes back to sustainability, long term sustainability is the biggest thing. And that's why with with the police officers and the career firefighters, we want, we wanted to run our numbers at least out for 10 years and that's, and the items that we highlighted in green are are those that we could sustain over that 10 year period and then going forward. Thanks. The grant just pays for. Their salaries for so many years and then the city would take one. Yeah, so the question is that what does the grant fund, um, I believe it's 25% 1 or. 75% of the cost of employees for year 1, 75% cost for year two, and then 35% or something yeah for year three and then from that point on the city. Is that grant limited by how much that they would fund as far as the total grant for Firefighter I, I did some work and I could not find anything. It's it's similar to the cops grant. What the cops grant does is it gives you a lump sum over 3 years of $125,000. Do you determine what percentage you win. By that. It like this last one, I think it required a larger amount up front than it did in the box, you know, as you know, year 3. And for the two police officers, uh, Mr. Schober, we did take into account the Cox grant in the future for the two positions that are before you here. that's not a given. But It's not a given, right? We've been very fortunate and given past, right, and so we were, we're kind of using that that optimistic assumption that we will continue to be eligible for that, but we obviously wouldn't pull the trigger on budget for those positions unless we had that grant in place. I think the summary is sustainable to have the 8 firefighters without the ground, still exploring the ground to see what additional that could. And then we wanted to discuss with Mitch that. If it's only 8. It's still functional. OK, so you were asked immediately what are your opinions. You've had 8.5 minutes now. Now do you have any opinions on what you're It's for food. My question I have is on, I know Chi Egler attacked on the reserve police officers that some, my understanding is that some of those folks may do it as a volunteer basis, so that's We wouldn't We wouldn't incur any of those dollars on those reserves, is that correct? There other than, other than the WSI and WSI so that there would be a minimal cost, uh, and we would be able to cover uniforms and stuff like that or would just buy probably uh. For formal firearms, firearms are about. 44 GSTs and if you look at page 2, the only item not highlighted would be the observer equipment. That would be the one time. Greg and I disconted those funds. There would be a good makeup. I, I don't think they will right now having a reserve police department would Uh And and not have would diminish the quality of law enforcement getting. No, it, it wouldn't be a reserve police department. It would be a reserve unit beside the police department. And what they would be used for is supplemental forces, you know, like, uh, we've got some events coming up where we posted out and officers are coming in. To work overtime. So that's gonna cost us time and a half to bring those officers in we've had a reserve unit, we could cut that overtime cost, um. Pretty significantly where they could, they could help run some of the like uh the legs and balloons the point of life kind of a hard one because everybody has to work for them give us extra manpower to help target part in the city, um. So that that's what the reserves would be used for. Yeah, to me it'd be all dependent on the calls for service, all those. Numbers and all the everything that goes into the plate that's currently there and what this does to affect that or not affect that. Well, the calls for service, they won't, it won't affect your calls for service. We have no control over calls for service. Calls for service are something that a citizen or somebody calls us then we respond to. Those are tracked by SEO. We don't have any control over calls for service. What we do have control over is who responds to them, how we handle them. Uh, manpower deployment, different things like that. Reserve officers would probably not affect calls for service or criminal reports. The manpower is more for staffing at special events, security features, um, extra manpower, so let's say we need You know, 4 officers down during bugs and blis. 2 of them could be reserves and 2 of them could be are searching, and those two that are reserves would not accrue any overtime or if we have to bring in somebody for overtime and they wanted to start off the over time the family because they worked another shift the other day. That's where they would be not, it's not an everyday occurrence, not in within the context of everyday life and law enforcement. And they're limited to 40 hours a month. We can't work for more than 40 hours a month. I'm just looking at you, looking at all the needs and stuff like too, and I look to see as a holistic need, you know, with that and how much that fits in keeping in mind that can't shape the law enforcement field there was always gonna be a a growing number of needs, whether the technology and many other things too. Idealistically, it can be great social living in very idealistic. Chattering their life and everything, well, the question was asked to me at least that was could they be volunteered? They answered that question yes they couldn't. Under century Code allows them be both more volunteer. And on the, the volunteer side, I think the main question would be. Is the value there to pilot the volunteer reserve force with the $63,000 that's that would be the the overall decision. Any more questions? No, I will move on. So as a result of going through um personnel capital outlay requests, um, City Hall, fire station number 3, budget and finance committee came up with a number of Suggestions, recommendations for uh the city convention to consider um. Hm First of all, in the general fund, uh, recommendation is to increase the annual operating cash transfer from the 1% city sales tax fund, uh, from a 75% cash transfer to 87% next year, and then to increase that to 89% in 2029 and 2030. Second recommendation for funding is to increase the annual operating cash transfer for the water and sewer utility fund from 15% to 70% starting next year, and then to increase that to 20% in 2029 and 2030. dragged by increasingly from 1725 will be the uh. Mechanism for doing that. The general fund would already have those dollars in place with its existing reserve, so it's just a matter of just um putting that money away and uh moving that money from unreserved to reserve. So we would not, we would not have to, um, we would not have to raise those funds. We already have those. And then uh the next slide is when we get into The next slide is when we get into the justification of why. Any more questions on, on this page? Yeah. Next, um, Budget Finance Committee is recommending to increase the minimum operating reserve from 17% to 25%. Um, the city's available fund balance and liquidity ratios currently comprise 30% of the city's total credit for Modi's. Um, been looking at a House Bill 1176, which is, uh, passed this last legislative session. Um, everyone knows about 3% property tax cap, not saying this will impact the city's bond rating, but uh it certainly could impact the bond rating not only for our city, but um other local governments in North Dakota that depend on property taxes. So we feel, um, as a city, it would be uh it would be wise, it would be prudent for us to increase our operating cash reserve uh from 2 months to 3 months. I think that would be a good step forward, uh, as we show our um. Ability to sustain our operations and not dry down from our operating reserves, one, because of the spend that we're gonna have for 2026, but also for future years as we look at adding new employees, new positions, and replacing our machinery and equipment. Um, obviously, uh, Moody's or bond raiders are gonna look at that 3% property tax cap. They're gonna see that as a limit to, uh, revenue, uh, generation. And they're probably going to be looking at, oh, is Manan going to be now drawing down their operating reserves to meet their essential services. Uh, I think we're gonna do the opposite. We're we're actually going to recommendation is to increase our reserve. Um, I, I think in doing that, it, it, it'll help deflect some of the concern that Moody's may have about um how a 3% property tax cap could impact the city of Manan's bond rating going forward. Uh, we are going to be taking on debt with Memorial Highway, with uh water treatment plant, with um, Uh, Collins Reservoir, uh, pick your favorite project. There are a lot of wastewater treatment plants. The city is gonna be taking on that, and we know that's, that's going to be, um, a credit rating evaluation. When you look at a city our size and what the amount of debt that we're gonna take on for needed infrastructure, uh, we need to be able to show something on the positive side that we are doing to, um, be good stewards of the city's funds and not drawing down all of our reserves and making this. Um, increase in the operating cash reserve, I think will be a good step forward. And the good thing is we don't have to find those dollars. We already have them banked up. It's just moving the money from unreserved to reserve in the general fund and locking up that that 3 month cushion that we would then not touch. uh However, um, by doing that, um, Increasing the minimum operating cash reserve will limit the number of employees or positions the city will be able to fund. Um, but Um, looking at Uh, 5 year plan and the items that are highlighted in green. For new employees and, and positions, um, that 25% reserve was already uh factored in when determining which of the positions that we would be able to fund for the next 5 years are sustainable. So, um, that, that has already been evaluated by increasing our minimum reserve to 3 months and we still, um, For these positions that we would be filling in the next 5 years, and you would sustain that, and the answer is yes. I asked you this the other day and we got back to me. Thank you. Uh, So We look back 10 years. Um, Oh, refresh me. Uh, I asked how many employees per 1000, right? Is that it? Right. And did we account for the next 5 years, that ratio, or was that a snapshot of this year? That was this comparison of 2015 to 2025. So we were 528 2015. 5 times 25, right. Did we run this solid or are we still in that ratio? I have noted that. And the thought is, is that I, I think there's been some concern that we may be behind in filling some positions that Have been requested in previous budgets. Those were In that figure. The positions that, yes, the 25. Yes, those were nice, yeah. So we're 5.8, I think employees in 2015 for 1000 people and we have Team Jas last proposed for 26 would be a 5.9. Actually, only only through the 2025 budget we at 5.9%. So the number of employees per 1000 has not changed. 10 years. Population has gone up, the number of employees that we've hired has increased, but the number of employees per 1000 has not increased. Is there a national average for that? Not aware of that. I know there are averages, or at least recommendations on, let's say how many police officers you should have in your community or how many firefighters you should have. I know there's industry recommendations in those areas, but how many you should have as a city as a whole per 1000. I'm not aware of what that number would be. But that could be flexible because certain cities privatize certain services that surrounding greatly effected up like we do with the right now. So in 2015 it was 5.8, 2025, 5.9, and with the 15 positions here. Going up to the 2035 estimated population, it comes to 5.85. 0, OK. Fra staff over there, uh. So Uh, we're probably gonna catch it a little time. Is there more people, uh, But it's totally responsible for uh. Fiscally, uh, cautiously optimistic but we should have said earlier. What we're doing, OK? We, we didn't go to 6.5 or 7. Still in the same range as we were in 2015. Go out to what did you say 20, 2005 is estimated population. What's the estimated population again in 2035? 27,869. That came from Andrew mining department. I'm not mistaken. Get more weather like we can we'll get double that right, we get that weather in January 2 miles out one come up here. OK, moving on to the 1% city sales tax fund. Recommendation is to remove the maximum tax of $56.25 imposed upon any single transaction involving one or more um items that is in our municipal code. Uh, by doing this, it would increase the amount of city sales tax collections available to assist in funding infrastructure projects in the city's proposed capital improvement plan. Usually a $10 fine in the legislature. But What we don't know is how many um How many transactions there are that would reach that $56.25. I don't know if the state tax commissioner's office would be um if that information is is available. In other words, the question would be is how much more city sales tax would be generate by removing that that cap. I do not know. Uh, but by removing the cap, um, for those transactions that are significant, uh, we would obviously collect more. Just trying to think of those um transactions that probably would would reach that level. Um, so penitentiary, like like like like the penitentiary. Because this is not the vehicle or implement side that's that is different, yeah. Excise tax and stuff. For instance. Might affect your side by side that you want to go by. I don't know how many other cities in the state are considering this. Um, there might be others out there, but I know we've we've talked about this. Mm Uh, 3.5 cent city sales tax, uh, recommendation is to, uh, place on the ballot in the future a 1% city sales tax to replace the 3.75% city sales tax after the current bonds for the Star and sports complex are paid in full, uh, and this 1% then, the new 1% city sales tax, uh, would then assist in financing the proposed improvements. At the wastewater treatment plant. Uh, Current bonds that are financed by the 3/4 sales tax are projected to be paid in full sometime in 2027. Greg on there this uh. EA thing of the requirement to all that big money. Where's that coming out was that a citywide assessment. For the uh raising of the heart so heart. That would be a citywide assessment. Yeah, that's how that would be paid on that, right? And there I think there's like two different tiers to those assessments is that correct Ja? Yeah, there's the input area and how when would that start? The Oar construction in 2020. Maybe late 2026, 2027 construction, two or three year project. And then assess after. So we would need to assess like complete the project then? More than likely we haven't lower hard hasn't nailed down the 100% finances. So we Probably 2030. And there's only about 7.3 million left to pay on the starting sports complex, or at least on on that overall bond issue which I believe was like 2022 million. A few years ahead of schedule. Uh, it was, uh, the Yeah, I think the bonds were originally rejected or at least when the bonds were sold, the um Spawns were to go out to 2041. And with with the uh sales tax collections over the years, a lot of the bonds have been paid in advance. They have since sales tax, the new one that went into effect in January of this year, uh, recommendation is to amend the code of ordinances to include new sworn police officer and career firefighter positions hired after December 31 of 2024. Uh, please note that uh this measure that was passed by voters did not include this funding provision. Uh, just as a kind of summary, the half cent sales tax, 40% of that, um, is carved out for public transportation needs. The other 60% of that half cent sales tax can only be spent for, um, police and fire vehicles. Um, In stations And City Hall handicap accessibility. There was nothing in the measure that allowed uh the hire of um not replacing the existing staff but hiring additional above and beyond the roster that the city has. It would be the uh only the sworn police officer or firefighter positions. What's the ratio right now between Bismarck sales tax and manage tax because one of the points of argument passes well if we get too high, people are gonna go with Bismarck rather than pay the sales tax here. We looked at that. It used to be what, 80/20, but I think it's a You mean the the ratio of sales tax between Bismarck and and are you talking about the no, I'm talking about the rate, yeah, you know, like, for example, they're total, let's say their total city sales tax is 6.8%, now, I think we're pretty comfortable right now because I thought Bismarck or Burley County passed. A 1% public safety in Marin County passed the 1% public safety. 0.5% sure which one it was, the 0.5% to add on to the. 1% per year. I mean I mean I don't know past the the past for street improvement projects which would be likened to Van Dammes 3 quarter, right, sports complex. I think, I think we're pretty close. I mean, I know years back, I'll go back a couple of decades or so that business people here were concerned about us getting too high and and people not shopping at their place on Bismarck, but they may not be the mindset anymore. don't think that has been proven. I OK. I think it's within a 0.25% I get which direction. City has its plan. So in order to change this, does this have to go to vote about citizens, not to my knowledge, I believe you have the power to um. Adopted ordinances. That we require legal consents in it that I think Amia is a sign that it would take a 3 Bs. Majority of persons. 4 out of 5, I think Comm would have to approve this change. Without the change, a city really has no funding mechanism. To hire additional police officers and verify the number that we need. You could probably hire a couple without this. Um, provision, but you wouldn't be able to, uh, fill the gaps. I think that's a conversation that we would have with the sponsoring committee. But that initiated measure together. Because they didn't include personnel in it, and We would want to have that conversation. First. Is it, is it the thought that. There's going with the half cent there would be more than enough to cover. The equipment Piece of it. No, there'd be more than enough to cover for just equipment. Yes. Right, so then there'd be untapped. There when all the equipment needs are met, so then that's why you wanna, that's why I thought is to bring in the positions, yeah, right, yeah, yeah. Otherwise, there isn't really a funding mechanism for firefighters and new, new firefighter positions and new police positions. This is considering when we are 60% of the totality of the. Distribution And that's why we modeled out so 5 years, 10 years with the half cent sales tax. Sure. are funded with that 6% if this changed for natives and we're projecting annually a 5% increase in sales tax collections year over year over that period. Any more questions on that one? OK, moving on, uh, home world charter. Recommendation is to uh adopt an ordinance that will allow the city to have broader authority than what is currently provided in the North Coast entry code in order to utilize bank loans and leases to finance machinery equipment purchases, Northota entry code um provides um limits to what Cities are able to do if you're not going to use your home rule charter authority, uh, such as one of the limitations is that you're only able to borrow over 5 years up to 500,000. And which, which is, which isn't a lot. Um, there are other, uh, provisions that are limiting to what cities, uh, can do, um. Your home rule charter, uh, through an ordinance would then grant you greater powers and authority to, to do what you want, uh, would not require voter approval to do that, but in order to use your home rule charter authority, you would have to have an implementing ordinance to do that. Uh, and there are cities throughout the state that have done something very similar. Uh, Grand Forks, uh, Fargo, West Fargo have passed, um, ordinances to implement the oral charter to do this very thing, and, uh, you'll see next here. In in the fire equipment reserve fund, uh, we have a request for a couple of fire engines. Um, you know, 500,000 is going to go very far if you're looking at a bank loan or lease, So the recommendation out of the, because the The have city sales tax is going to have limited funds. Um, that could help pay for, uh, fire engines in 2029 and 2030. It would not have enough. Uh, so utilizing the fire Equipment Reserve fund to, uh, sustain that future cash flow, we would need to have the authority to go to local banks. To look for a longer term financing, let's say 7 years, 10 years, and you, you're looking at, you know, 1.3 million um in 2020. So we would need that home rule charter authority to be able to structure the financing that, um. That would allow us to do the things that, that we need to replace uh much needed equipment for the fire department. And if there is a fire station number 3, that facility will need a fire engine and a fire truck. In that, in that area. Uh, so we need to be able to leverage our fire equipment reserve fund with the help of whatever the half cent city sales tax might be able to do, but we're gonna have to have those financing term provisions, um. That would allow us to do that over a long term basis, of which we would be restricted right now to the North Dakota Century Code by only looking at 5 years and 500,000, which isn't going to be enough for this. Tying it back to your previous question on half that sales taxes, for your equipment reserve even, I would say more limited on what you can spend the funds on and the 50 cent sales tax. So these fall within what what those funds can be used for. So that's why the the thought is they fund these from the fire equipment Reserve fund rather than the half cent grants. Mitch was the instrument of firing and fire truck and soy. so for station 3 we look at fire engines and like a pumper Description truck and a brush truck there. So the truck would be this a smaller, uh, less equipped deal I think yeah the engine would be your standard when you see like down in Lakewood by your house. Are you, are you required to have so many aerial and right now our city requires one city you have to get to a little bit bigger than Bismar different two hours. OK, moving on to City Hall and fire station number 3, the recommendation here would be to uh place on the ballot in the future. A request to issue 20-year general obligation bonds, uh, roughly around 20 million would be the estimate for improvements for City Hall and for the construction of fire station number 3. if we do use general obligation bonds, 20 years is the maximum that state law allows under that provision, uh, general obligation bonds for this purpose would require 60% voter approval. Um, and if passed, the bonds would be repaid with a dedicated property tax levy over that 20 year period. Is the dedicated profit tax levy not capped by the is not, no. So question Cause there's gonna come a day when you're gonna have to expand the police department or it's gonna have to find the building. Will this affect that? The building will need to be a different bond that down to probably a different bond. I think we're still trying to. Navigate through House 1176 to see if we go to a boat. That increased the mill levy. Pay for something like this, do we have to do that every 4 years, or if it's we do it once and then we're good for 4 years and then you can add on after that, but we're still working our way through that, uh. So, like I said it's, it's a. If we pay for new positions and we budgeted equipment out of the half cent or the 60% of the half cent, there isn't money left in there. To pay for a new fire station or City hall accessibility things so that's why we're looking at this option because again we're trying to add personnel in those areas it's definitely. This isn't funny is there for. OK 12 or 3. As we broke it out, it, it just seemed that for sustainability of sales tax, something that happens year over year over year, that personnel made sense out of there one time amounts like the facility. I think people understand that easier to to vote on why a property tax increase versus something that fluctuates as much as personnel. You know the fact that's going to play here is you're not looking at it. We also have the other taxing energy, our board of school board of county within 3510 years down the road. What kind of competition are they going to be for our projects or maybe some of the major projects. Think about the school is. We have in place for the high school. I don't know if they have elementary schools that they're considering coming on anytime soon. Oh I think it's Time to think of what we need to do for. For us, I think we take a back seat too many times to those other entities. Our job is to look up the city park district or the school district so and to jump in, I mean, uh, you know, to get, get that that dollar before they get sometimes. It's active in that. Yeah, anything else on that one? OK, municipal infrastructure fund or better known as uh For fund, uh, current cash balance that the city has in the bank, so that is $12.4 million. Um, if you subtract the infrastructure projects that are already committed, um, out of this fund. That would be 5.1 million, which then would give an uncommitted uh cash balance of around 7.3 million in order to um To navigate the city uh through the utilization of these funds, the Budget Finance Committee is, uh, recommending that the engineering department uh continue to manage these funds for, uh, those projects that are considered to be eligible, um, uses. According to the city's proposed capital improvement plan. Special Assessment Administration fee, um, the city currently charges. Uh, for every special assessment district, whether it is, uh, either a maintenance project or a new development, the city will charge a 5% fee, um, which is used to help pay for the city's costs, whether it be, um, engineering department, uh, finance department, um, all the meetings and all the discussions. Of, of all the staff time that is put into um a project from beginning to end all the way through um every year when we have to assess the next installment of that assessment project. There is time and effort that goes into that, so the city has uh charged a 5% administration fee, uh, that will then go back into the general fund to help. Uh, it's a revenue source to help offset some of those costs. Uh, does that 5% administration fee pay for 100%? Of all the effort that the city puts in for uh special assessment projects, no, but we do charge a 5% fee, and we have been doing that for for quite a while. Uh, the recommendation would be to uh keep that 5% fee for maintenance related projects, but should we consider increasing that administration fee to 10% for Uh, your new development projects, uh, which would then those additional funds would help further Um, and meeting those costs for ongoing engineering, police and fire protection, and snow removal services that the city provides. don't know if that's going to be very popular with developers, but as the city is looking for a revenue source to help offset the growing cost of providing city services to new developments, uh, those costs are only going up for the city and with the limited amount of property taxes that we're able to collect, um, Does the city need to look at increasing the administration fee for new developments to help offset some of those one-time costs as the city's footprint expands and and grows, you know, we're we're having to plow more streets and we're having to hire more police and and protection and the cost of engineering services, um, either consulting fees, those go up, or if we have to hire additional staff. Uh, you know, with, without property taxes, where are those dollars gonna come from to maintain those, uh, to maintain that level of service, especially as we expand into new developments that that come online. Do we have any idea of Because like, for example, or others that do a difference between you and. And current, um, Haven't really um Done a survey, uh, Comm of what other cities do for maintenance versus new. But I know that the admin fee that other cities charge are different. Um, some will base it upon it like Bismarck, if it's still their current practice, if it's a 15 year assessment, they'll charge 4%. If it's a 10 year assessment, they'll charge 2%. If it's a seven year assessment, they'll only charge 1%. Lion charges just a flat 20%. Um, Fargo charges a flat 6%. Uh, the presumption is that it wouldn't matter if it was a maintenance project or or a new development. Um, so it, it varies. Um, it, it is considered by Century Code to be an allowable cost, but we have to be reasonable and, and, and fair. You, you you can't just have such a high admin fee if you can't really support. Where those costs are, are to be utilized. So the question would be, again, uh, does it make sense to look to your, your new developments as a way to generate the revenues you need to help provide those services, whether it's replacing, uh, uh, you know, snowplows and, and, uh, you know, hiring another firefighter as the city grows, it, its service footprints gonna grow too, and where's that money gonna come from? If we are constrained by our ability to generate property taxes to provide those services. Many of the expenses are a front load in a new development that need the new equipment now that the The the property tax that you get from the developments over time, that'll build up so you can cover some of those costs, but this is for that initial investment of One year property tax, no problem. or lower or whatever it may be, so it's those front loaded expenses that this helps helps offset. And and of course we don't. We, we don't hire police and fire only to service a certain We don't replace equipment or buy equipment only to service a part of town. certain part of town, but it's just the it's the concept that as the city grows, so do our um needs to provide those services and where is the money gonna come from, especially when all of those costs are so expensive. We are currently um Undergoing a utility rate analysis study, um, that is being done by A2S uh for our water, wastewater and stormwater uh functions out of our water and fertility fund. Uh, we are not done with that yet. We are still working with uh A2S on this study, and we're hoping to perhaps have more information that we'll be able to share with, um, The commission at a later date, maybe June, maybe early July, uh, just depends upon, um, Uh, when we can complete the wrap up this report, we for certain want to have our 2026 rates identified here soon with the 2026 budget, but this, this is also looking at our next five years. And we are not done with that work yet, but just want to give you an update that we have been meeting with A2S. We've had discussions with them and we're gonna continue to do that until um the study is done and then we will then update the commission. In the near future, what was the last time this was done or anything? That adjusted. As far as the methodology. methodology and the uh Metho Structures Residential commercial. I believe the methodology goes back, if I'm not mistaken, to the early 80s. I know I've been here 30+ years and, and the methodology of, let's say, uh, a 2 unit pays twice the single family and a 3 unit pays 3 times the single family. Uh, that methodology. Has not changed in all of that time period. The rates have changed, obviously, but the methodology hasn't changed. Uh, current methodology that a lot of cities will use when it comes to base charges for water, wastewater is based on your size of meter. I mean, there's probably other other formats, but seize meter seems to be the way to go. Um, in, in this economy and our, our structure is, is very antiquated and um it, it needs to be reevaluated to make sure that the charges that we are um Allocating to our our different customer classes whether they're residential, commercial, industrial, etc. um, that we, we just need to update that so we, to make sure everyone is uh paying their fair share. When it comes to providing water wastewater storm water services, um, and we're not done with that effort yet, so we want to make sure that that we do our due diligence, do this well, um, and, uh, we'll, we'll have more information to share in the next month or so on this. And the last meeting we had on this was on the 22nd of this month, was our last update. Next steps, um, moving on to the 2026 budget, uh, the next step is department managers have until the end of the month to, uh, provide their operating budget worksheets to the finance department. Uh, in June, uh, the finance department will review and update the revenue expense and fund balance projections for the 2025 budget. We have, we already did this for the long-term financial plan. Uh, we did that as of the end of March, but as a matter of practice, um, we always update the Your budget on paper twice a year, once at the end of the first quarter, and then in the 2nd quarter. So we'll be able to update our fund balance projections because we want to have the most accurate and and most reliable number for our beginning year fund balance projections for the 2026 budget. In July, the Budget Finance Committee will review and approve recommendations uh for the preliminary 2026 budget. Uh, on August 5th, the Budget Finance Committee will present the preliminary 26 budget to the city commission. Uh, the city commission at that time will approve the introduction and first consideration and call for, uh, call for a public budget hearing on the ordinance adopting the 2026 budget. The next, uh, Meeting on the budget in September, we have two options that we want to throw out. Uh, option number one would be what we traditionally have done, and that is the second meeting in September, uh, we would conduct the, the budget hearing at that meeting, and then after the public budget uh hearing, we would, um, traditionally approve the second and final consideration and adoption of the 2026 budget. Um, option two would be on September 16 is just to have a public hearing. And then we would then table um the second and final reading of the annual budget. We would wait until the first meeting in October. October 7th, by the way, is the last day. That um you, you can approve the budget. So uh the budget would have to be approved on October 7th. Uh, so the question would be, um, commissioners, uh, what would your, your, your preference be? The doing the second option, what we're doing is giving the public more opportunity. I think that that's the objective I think Comm, it's to actually give the commission time to be able to uh consider and think about all of the comments that might be made at the public hearing, and it would allow the commissioners maybe to to do some follow-up questioning and get more information from staff. In the past I felt that you get that line and it's kind of a. There's not a good hiatus there. Well that'd be good that I like the second option myself. So what we're doing is we're kind of Trying to develop a consensus amongst the mission to see what would be preferable. I plan to have any other. Studies when you get down to more again to kind of overview anything as a group like this here. To say that, are we going to, oh, you know, when you get down, you get you go so you plans when you get down to like what I call a final draft. Is there a need to For everybody to get get to review that graph before it goes into the public hearing. Yes correct, yeah, the preliminary budget would um be what you're referring to Commissionerro in August that first meeting in August. I'll just, we'll have a presentation for that. Yes, there, there will be a presentation at that meeting, um, and then when the public hearing comes, I would get up and I would just not go through the budget again, but I would introduce the item and then um the mayor then would conduct uh the public. Budgetary can allow people that are there to to get out of school. And then also the intent for the five year long term plan is to bring that to a commission meeting for final adoption separate from the 2026. Right, yeah, yeah, thank you for I forgot about that, yeah. I think we, we heard from a handful of individuals this last go around about more public. Feeling like what they said in the meeting didn't really matter, right? And even though they've had opportunities to say things before that, so I would, I would like option two, unfortunately, you know, it's right against that, you know, you just have the final day to do it that puts us in a little bit of a bind to make sure we get all our ducks in the movie on the final day, but I would, I would be. Same same here. It makes no difference for the finance department. I mean, either way works for us. It's just that you're up against that, that last day, and it's because August, or I'm sorry, October 7th is that first Tuesday. In October, which coincidentally is the is the final day, uh, by century quote that you have to, uh, Approve your your final budget. Just, just my opinion was. Last year And being my first obviously, it's like people that they're enough to show up. Voice their opinions. Then we went ahead and voted to pass it anyway. Um, Just didn't seem As though we as a mission. Have time to actually consider what their concerns were. And I think we owe those people that did take time. Their lives to show up. Take the podium At least we could do is to Discuss some of those options. Because there were two people that came up with some pretty sharp ideas. The only thing that the commission would be up against on October 7th is you wouldn't be able to increase anything. In the budget, you can only decrease. So if you had all the comments that said we would like the city to add more money into the budget to do A, B and C, uh, you wouldn't be able to do that. Um. I'd have to double check that again, but certainly that that second final hearing you could not increase. Anything that was in the preliminary budget. But I, I'd have to go back and check, but I think at the preliminary, the first meeting, the commission could. Could increase, but you're not, that's not the public hearing date. So you would know that the public wants more money to be spent for something that would increase the budget the commissioned on October 7th. Legally would not be able to do that. Yeah, that should be easy to explain, you know, with that, And then you guys have talked about you'd be able to make a budget amendment almost immediately afterwards and to make, yeah, yeah, can't change your property tax levy change your budget. After, after the official budget's been adopted, right, yeah. So you could consider um a citizen's request to, let's say spend more on a particular thing through budget amendment after October 7th, you just couldn't do it in that meeting. I just think it would Be a better presentation for those people that show up. Of the curing. The The Concerns were. Between that time and October 7th, so I'm, I'm all in for options. That's the consensus then. A last item of Once the 2026 budget has been adopted. Now the finance department is already looking at the following year. Um, so the recommendation going into the 2027 budget planning would be to, um, amend the city's current long-term financial planning policy to revise the length of that annual financial plan for 5 years. Yeah. I think that we have talked about in, in previous working sessions that that would be the goal. We would, we would want to get through the 2026 budget process first, and then right after that, we would then amend this planning policy. But you have to initially started more particular as it goes to the general as time goes on, you can't start, say 10 years looking so far down the road 10 years you can't start in the 1st 123 years, same going you looking 10 years, I don't think so anyway now. You're, you know, you're really forecasting quite a ways down the road you look at, you need to look at more initial things initially and then those other things are gonna be kind of out there. Look at the boxes of binocular and you see what's coming. But even when, uh, Comm, you, you take a look at our 5-year plan and you see that there are a number of things that are not highlighted. It's because we are looking 5 years down the road and we see that, oh, we won't be able to sustain something. So we're not going to recommend something, um, because we know looking at the projections 5 years down the road and even 5 years down the road. The economy can change the metrics can change, but at least that gives us, um, that we can be proactive instead of reactive to some things and not making, um, spending decisions that's going to, uh, cost us. It's good to have a compass point in certain direction. Now, whether you all the roads gonna take you there, it's up to you, but exactly, it's good to have the comp point and and our and our 5 year planning, 10 year planning it's gonna be a very fluid document. It is something that we're gonna have to uh review it in-house administratively throughout the year. Um, just to make sure that that our projections are, are still on par. One of the benefits for the condition will be, yes, your, your year 123 will be more precise than your 10, but you'll be able to see, you'll be able to see the decision you make in year two, what the impact of your 10 of that decision is. It just help you see that. Quick snapshot. 4 or 50 years ago we did budgets it's year to year and there's an open, yeah, and we don't hear you here uh what projects do we have that have a one year cycle? What? 0. What projects do we have that have a 2 year cycle. I, I feel like. Most small products, yeah, most of them the large ones do what. 35. Yeah, that's gonna be more I probably been 1520 years. So the first gonna be bringing it uh. Be many years so. This makes sense not to budget on a a year to year basis. Taken out to 10 years. And the funding, uh, Matches up to correct if we uh Do a mill and overlay, that's a 15 year. Is that where we want to get to Match these projects up or so we have a forecast out of our patents. Taking the pavement side, you'd want to be doing a chip sale at 7 to 8 years and mail it over 15 depending on the sub bases of the material and things like that in a perfect world. Probably what you do, yeah, right there, yep. Um, yeah, obviously trying to lengthen that time as much as possible, but I think that's that's all we can count on. Um, when your forecast said this. Um, and like, like Justin, um, brought up, our CIPs for utilities and for transportation, we want to bring those CIPs in front of the city commission for, uh, approval. And then at that same meeting, we want to bring A2S to come in and they will then at the same time provide their utility radiance study. So without knowing the the right side of the equation premature tonight talk about which projects and where would be so notable. Great impact. Timing wise, what are you thinking? And now we say June, July, within the next month is what people really have that final one suit or. can be with them. So since January, we've had a, we've had a lot of meetings. Anyway, all you guys so this process. You've been been been around the city for a long time I think. It's quite fast improvement over the way we're approaching the projects finance, organization, cooperation, all of them. a couple things, you know, uh, there's been things that have been presented in here that we make. In order to make This work And those changes that have been presented, like we have to go from a 17 to a 25% uh reserve, we need to go from 75 to 89%. Uh, in sales tax. Collection money feeding into the general fund to make what we've presented work. Uh I think included in here is for 2026 anyway. 3% across the board salary increases. Which matches up I think with the the indexes that we use. Health insurance, we have budgeted for a 10% increase in 2026, but we've dropped that down to 5% in 2027 and 2028 because we 10% every year we, it's just not feasible to do. Uh, I think Amy's given us the numbers on the average increases over the past 10 years are 6.9 or 1. It's almost 7, 6.9%, 6.2 years. Yeah, um, but those are things we've always, we've factored into the long range plan in here too, but again, um. If those Assumptions move, then other things move along with it. And so if the commission were to say we want 5% salary increases, OK, then what are we taking out of these plans to fund it, and I think with Greg and Justin have looked at the new legislation in 176 and factor those amounts in here on what those caps mean. Um, so and that's like I said, without those assumptions that we talked about in here, whether it be. Be able to pull new employee, new position salaries, placing fire out of that half cent sales tax. This Boats Somewhere else. And then you aren't able to fund those positions unless those assumptions are. Yeah, so again we've got some work on our end with attorney Oster to make those call legislative changes to make that work, uh, but like I said, those are, these are the assumptions that need to be put in place to make. Make the cake. So this is the recipe book. There's the cake, and I almost need to go in and So those assumptions be presented as the business items make this book. and condition absolutely, yeah. And it's basically every assumption in here was built into this now, right. those assumptions don't happen in fact. In the cake and serve the ingredients need to be changed so we could use. It's new business. That realm to present. These concepts. In a manner that will educate. Citizens like we've been trying to do since, you know, July of educate and justify why we're doing It's it's a doable option for the public to get educated in. what we're suggesting. Yeah, OK, so sum this up, sum this up with a uh. General an actor not beautiful. Comm shoulder pointed. People are going to talk. And they're gonna say, did you see what the city is, they're gonna do this, do that. You tell me why this is responsible. It is responsible because we have looked Into the future and we want to make sure that whatever we do spend above and beyond. Um, our current budget, whether it's replacing, um, equipment or adding new positions that we're able to sustain it, but, uh, is equally as important as to make it um as affordable as possible to the taxpayer. Would you consider this fiscally conservative? I think the way I put it is. The Comm is right. The Commission and staff that's 7 x 8 with tonight to identify needs-based budgeting. And eliminate anything that wasn't the need. And these, these are the financing options to cover the needs that the city has. I think we did a good job of removing all the wants on the list and only focusing on the needs that the public has asked for. That's what I would say I believe it's a fiscally responsible process by starting with the needs-based budget rather than it's so many dollars we have, how do we spend? It's, it's a, it's a good model, very good model, because I go back to budget, you know, zero based budget. I can give you 5 different types of budgeting processes, and this one here actually makes the most sense and this is more responsible. They do this. What are the what are the needs? Now, how do we find? What, what the public may not know yet is what all of those needs are if we know in the next 5 years or 10 years. Very just a question, sorry, when would you mentioned about the vote for the uh City Hall and Fire Station 31 would that be just roughly. See what To is still reading. It happens. That's we're gonna get so it's only going to cost more, the longer you wait. Uh, problem is if you build fire station number 3. You don't have enough people to fully staff it. Um, Question would be for fire station number 3. Based upon the timing, you indicated 2030. However, city halls need are are probably, you know, very immediate. Um, But Does it make the most sense to put the two items on one ballot or to Separate them. if you look at a fiscal responsibility, the sooner you I mean, build it better, but then there's the public perception of Are you functioning out of that building to where there's there's two sides of the equation. I mean, could, could you build the fire station number 3, but, but you don't operate it as a fire station until you're able to. Properly staff it. And then what do you do with that facility if it is built and it's not a fire station? Is it used for another, could it be used for a temporary purpose for something else until it gets converted and finally built out as fire station number 3, because now you can staff it. Well, Mitch's been in contact with the chief, our chief that's exactly the same size city as ours. They went, they got to build big. I was down I looked at a big beautiful fire station, but they went on the concept that we cannot afford to build this same building 35 years down the road, so we're gonna build it now and we'll staff it as we go along and work out the best we can because it's going to cost way too much. We probably won't get a bill you have to wait 3 or 5 years down the road. We build a new fire station and temporary relocate city hall folks up there while we figure out what to do here. I'll buy the Corvette engine in later. And then I think it could be a different discussion of when you go to a boat versus when you start construction as well. But if you separate out the two buildings, I can see people voting for the fire station and not the city. just in general, people don't realize how bad City Hall is. And if I wouldn't work here and I didn't know any of this stuff, I would vote for the fire station and that. I could see that happening if they're separate. inclination is to go play some bar but you have a fire That's the stations to be cool. I mean So there's some, there's some timing things to work out and everybody wants. some logistic things to work out. On those facilities, timing I mean by if you If we go to a one, if the sports complex gets paid off in 2017. And we go to the voters prior to them asking. Or that when that 375 cents goes away, that 1 cent goes in the fund. Portion of the wastewater treatment plant facility. And then you go back a year or two later and say now it's time for police and fire station vote. We're gonna get so but those are all discussions to have at a later time, but those are. To answer your question, Mayor to uh, I think, you know, we've heard for the last year about these cities and counties are just gonna figure it out when it comes to the property tax thing, so. I would say to them, and I'm proud to sit next to the finance people here that You've figured it out, and you figured it out before. It becomes a problem and the, you know, the comment to touch your nose off to spite your face. You're looking at what the potential Moody's. Not having the the liquidity ratio does to our our borrow borrowing percentages and things that we're gonna do later. So you, you come up with a plan before it becomes a problem. So I would say that to the The folks that say you're spending more. Yes, we are spending we're in line, I think with what some of the pieces that we've talked about the personnel and set, but We are being forced to figure it out with this. This House Bill 1176 and but we're looking at the future, yeah, yeah, well beyond when when they're gonna reconvene in the next session. It has always been my observation if if I'm a taxpayer at home watching a conversation like this. Um, not only do I like to hear from staff, what you just said, Comm, I think goes a long ways in establishing credibility and trust with the taxpayer to actually hear commissioners articulate that same message that staff has been saying. That it's not that um staff is trying to convince the commission, and the commission is trying to weigh, but that the commission is in lockstep with staff and can articulate the same uh message that staff has been saying. But you have the ability up there at, at the, at the commission table to create that megaphone that perhaps staff can't always do that. And to know that my Comm who I voted for is getting up there and saying the same things, and repeating the same message that staff is, it's like, oh, that that that that offers some um ground truth. What staff is saying, the commissioners believe the same thing and they're repeating that because It's the truth, and that's the message that needs to be conveyed. I, I, I'd like to see go another step too just based on things that I've heard. Um, of the world is that if you guys engineers so far what I've seen public appearances off campus, all than one job, and if you've deescalated a couple of shark feeding feeding friends that I first watched raised the hair on the back of my neck. But you could maybe Uh, if we could be a little bit more inclusive with these guys, the engineering guys, get up there, maybe articulate from your standpoint, like, why do we do 7. Gypsy by 150 years unless 2 is technical people, you don't get involved and then all all I've been getting to be brutally honest, is that uh um. Either you take us or we take you out for steak and move. It's be very nice stay on myself and and and Please be honest and not necessarily conational, but then again, uh, not always real. Because the public doesn't understand that, you know, like working with variety. I've known Some cases since last July, it's coming on fight. The public thinks that we got that information last week. It's a long time and that that's why you missions I mean they both about. And you know categorize when. These guys could work options are out here for every every department. Um, But I do that. my opinion. Later on, yeah. Well, I can tell you this. The next 5 years we're gonna be accused of it. Cause if people see a project, whether it's the federal DOT at the Sunset Interchange. Or the state DOT on the strip. They're assuming it's City of Man had stopped. Now we have a little bit in there, but we're not paying for the whole. So anything that happens, they're gonna say you guys are spending. Way too much money. Uh, they came to us last year, if you recall and wanted to know why we didn't notify. Why we didn't notify them, and how much is it costing? Uh, for this company, Michael's to be doing what they're doing. It's not costing us anything that's MDU. It's gasoline. But they see that and then they believe it's it's us. The beauty of this Is uh It's all within the framework of what we can. So there's going to be building, we are moving everything forward. Um, And we can defend it. Will not put any, not put the city in the whole. can defended, and I think that's the biggest thing with this, because all these things need to be done. And uh Somebody said, we don't sit around city hall and and and pull projects out of a hand or plenty of cards and say what should we do tomorrow. Let's have kicks. So I think it's very important that Commissioners, the department heads are armed with this because we're gonna, we're gonna hear it, we always do, right? Probably doesn't have a universal brain, you know, there's about 1000 and 1 different opinions, 1000 on different oppositions make me happier, make me unhappier right here the public is is very, they're very fragile and very fickle. Because that's my experience. We have to do what's his name Garrett Black lions. To Comments 236ucking caring and then I heard that I. That was very well phrased as we are all part of the Bandan team. We're band and strong. They're doing this, but the majority of the people use the word teamwork. For the future of this community. That's what I was going to our kids and grandkids. It's too late for me. I'm 71. Pushing Daisies probably a couple of years, so, you know, but for our kids and grandchi or or maybe for all you young, you know, 40. like that, So we, we have to prepare this and we can make things. A lot more easier. Allow them to be publicly educated and more understanding of green versus. That's the goal. We can do that. 2028 and message, message received. It only took 5 months. It's Anything else? No. Mr. M. just a big shout out to all the farm headsreg and Justin for putting this information together. We got a deadline coming up on May 30th, so, um, but again, it's a, it's a, it's a very much a group. So you know it's a big lift on part, so appreciate it. Yes, thank you, and you're everyone's time from January until now. Kind of beaten up here Your 2nd and 4th, 5th Tuesday, that's. Time has been appreciated. Without the future meeting dates for the board of City Commissioners Tuesday, June 3rd at 5:30 p.m. Tuesday, June 17th at 5:30. Tuesday, July 1st. At 5:30 on Tuesday, July 15th. There's a something that I was that weird and thank you all very much. part of that.