11-07-2022 City Council Meeting Minutes

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City Council Minutes November 7,2022 Page 2 of 9 5.1. Splash Pad Fundraising Update Mr. Spiczka said Jenny Gonczy messaged him that the grand opening ribbon cutting is planned for May 25, 2023, the Thursday before Memorial Day. He said it is unknown how many pavers are left but sounded like sales are going well. Nick Roy is waiting on a cabinet and rubber seals. He told Jenny to withhold last payment until those are received. 5.2. Jason Murray—Budget Presentation Jason Murray began by stating he would like to have a conversation about where we want to go as a City with projects. He presented a spreadsheet based on trying to mirror our current water, sewer and property taxes with our operations, projects and existing debt. Over the last year and a half, Council has stated a threshold of 50%. Now we are moving into next year's budget cycle, holding at 50%. Met with Rich and Angie to see where we are at with projects. Based on keeping at 50% tax rate, how do we work in projects? Capital Financial Plan. Make assumptions that we continue with baseline. General fund contributions into capital outlay, capital equipment. Water and sewer fund. Build in construction inflation. We're still using 5% inflation. Sewer higher because of projects built in. Presented projects: lumber, force sewer main, Coleman St, 9th, Ackerson, Wild Acres, north section of Rasmussen and Patriot Ave overlay. Then larger projects: fire and rescue and large Patriot Ave re-construction. $50,000 or below is more operations budget. Over that amount includes large equipment purchases. Mayor raised question about fire truck purchases. No Capital Improvement Plan for Fire District yet. Discussion ensued. City will need to pay with the contract. Main and Front and Patriot projects coming out of the 402 Fund. Where is the revenue from the City coming from? No special assessments built in now but can be built in later. Water, sewer, and taxes are sources of revenue now. Questions raised about paying back the 402 Funds. In the year 2030, Maintenance facility will be paid off as it is currently being paid back$93,000 a year. Section of Rasmussen Rd that goes back trailer park, was not done; pavement or infrastructure. Discussion about 402 Fund. Tim Houle explained "turn backs". Explaining the Power Point, these are impacts on property taxes of all the projects presented. Green is operations: 43-45% of overall levy. Yellow is existing debt: everything done prior to this point in time. In example, plow truck was in red last year, now it is in yellow. Existing debt is approximately 50-52% rate the next few years. Trying to time projects are existing debts come off. Some projects are a bit larger. 3% tax growth built in. Very conservative model. Red is the new project debt. Discussion ensued about debt. Based on 50% tax rate, we can maintain operations, pay off existing debt and start new projects. If we take on new projects in 2024,we will not incur debt until 2025. Priority of projects is based on staff input, Jason is looking at it from how we can manage the impact on water, sewer and taxes. Next conversation to have is with Tim coming back to the Council with his recommendations on project priority. Discussion ensued about project priority. Jason said if we stay at 50%, the next big jump in debt is the Patriot Ave overlay project but for the most part, it is manageable. The