[0:00] Welcome to the Kotwood Heights Parks and Recreation Service Area Board of Trustees work session. It is now three, excuse me, 304. And I'll go on with the Board District Representation Reports. Jen, do you have anything? I'll do you know that. Dennis? And I do not either. Okay. The next thing is the safety minute, safety meeting minute by Audrey.

[0:26] Well, if you had time, or...

[0:27] I got you.

[0:31] Just say this way.

[0:32] Go.

[0:33] He's got a couple of he related accidents.

[0:35] It's been extra hot so we only need to make sure

[0:37] and hydrate to our aquatic compartment.

[0:40] They're like our games team to replace it.

[0:41] They're like our games this year.

[0:43] Our safety top was them and then the safety top

[0:45] was brought to us by Ellie Brown.

[0:46] We can't control who was filming, but we can't control

[0:49] how we conduct ourselves reminded.

[0:51] People can record a smart, smart glasses, smart watches,

[0:54] doorbell cameras, dashhams.

[0:54] When they're livestreaming, maybe someone is even reporting on a child's reaching a milestone.

[0:59] So because we are on stage, especially when we're representing CHRC, we need to A, respond

[1:04] appropriately, even if someone is at set B, water body language, C, remember our words

[1:08] of a patient who's yet to take him out of the rally here.

[1:10] Next, they do committee manual, B, all but usually September 8th, L and M and here's a cute

[1:14] little flyer.

[1:15] That's great.

[1:16] That's it?

[1:18] That's a good topic.

[1:20] 41.

[1:37] Okay, the next item is information and discussion regarding possible truth and taxation.

[1:46] Yes, so this has been a conversation that we've been having all year in knowing that kind

[1:54] of eight years ago, the board that was in place then, we had to make a pretty significant

[2:01] truth and taxation process happen because it hadn't been done so long, the board, whether

[2:07] committed for future boards or made a suggestion that this is something we visit every three to

[2:15] five years. If not, I mean, you could always do it annually if you want it to

[2:20] or every other year and we kind of all discuss it. Generally about every

[2:25] four years still is about the right time to do that and we'll go through some

[2:28] historical data and you can see how we percentage wise where we will peak and

[2:34] then we start to drop and drop and drop because as you know we can't collect more

[2:41] than our number?

[2:42] Yeah, our middle-levy rates, regardless of what home prices do.

[2:46] And that's something tricky for the public to understand.

[2:50] So even if our house goes up, doesn't mean we get more money.

[2:53] We only can collect the same amount of money

[2:54] that we budget for.

[2:55] Unless we go through this trip and taxing process.

[3:00] So Patty kind of challenged us as a staff

[3:04] to come with some historical data of cost and things as a facility as a whole.

[3:11] And so we started with utilities, purely just gas, power, water, and then we did our parks,

[3:18] water sewer garbage. And I think for the most part we have this pretty dialed in except for

[3:28] electricity seems to be one that is all over the board. We took an average for this year when we

[3:33] put our budget together hoping that that's where we'll land. We're slightly

[3:39] above budget year date across our futures. And a lot of this has to do with

[3:46] what the weather's doing outside, whether our colds, whether we're hot, whether

[3:50] we're dry, or we'll wet. So there are a lot of variables. As you can see water is

[3:56] It's a challenge and it really has tried very diligently to dial in spring loads as much

[4:04] as possible.

[4:05] Kevin is very aware.

[4:07] But some of these ebbs and flows happen when we have to drain pools.

[4:11] Something we'll talk about, you know, we have to do our our dive tape repairs next spring.

[4:15] Right now, if I just calculate the cost of water, it's in process 30 grain to refill it.

[4:20] I mean, that's how much water is, and so sometimes we have unexpected things with pools where we

[4:25] we have to end up drinking or we don't even want to.

[4:28] And also, increases in water rates.

[4:30] And the increases in water rates,

[4:31] and they've now come up in New Teres

[4:33] and solid public utilities

[4:35] because I think the last two years

[4:36] raised water prices.

[4:39] So we, that's kind of up and down a little bit.

[4:45] So I just kind of wanted to show you,

[4:47] and then here's a graph,

[4:49] the current graphs.

[4:51] It's a little hard to, you can see 2025 on the left.

[4:58] This is your 2025.

[4:59] So the blue is on the side.

[5:00] I'm not following this up.

[5:02] Okay, so the bars are the years?

[5:05] Oh, okay.

[5:06] Got you.

[5:06] Any bars are 2020.

[5:08] Blue bars are 2025.

[5:10] Gotcha.

[5:11] So you have the letters.

[5:12] You can see we're pretty consistent of going in.

[5:15] So utilities is one of the things that we constantly have to.

[5:19] account for when we're talking, when, when is the right time to raise taxes?

[5:26] Yeah. Okay. So the next one we have is our repairs and maintenance and this is

[5:33] purely just broken in between operations, so all things building and then all

[5:39] all these parks. As you can see, we'll do the graphics that works better for you guys.

[5:51] We need the header, but we probably want the district, but we're talking here.

[5:55] Again, blue is 2025. We just went back the last three years, right?

[6:01] Those costs tend to go up. 2024 was a little bit unique in that we have track funding

[6:07] for our parks and so parks when he was down a little bit because we had received

[6:13] alternate finding sources but as you can see operations why this continues to

[6:19] increase because our building actually behind we might need an outdoor open

[6:25] could that help me with that one is cold and I think it's totally that or if anyone

[6:30] needs to zip out and cool off that's how that happened with a special fund.

[6:35] So track is tourism, recreation, art, and culture.

[6:43] Commercials, something, or.

[6:44] So they offer track every year for certain projects.

[6:49] And we kind of had an agreement with the city at one point

[6:52] where they would go for track coming in.

[6:53] And we would go for track.

[6:54] And we would go for track.

[6:56] And we were supportive of them doing that and vice versa.

[6:59] They were looking more for like trails, streets,

[7:02] exactly in this early parks, but some of their parks have been helped. That's how we got the playgrounds.

[7:07] Yeah, we got the playgrounds in Anacac, Mill Hollow, and by the way, two of those parks are ours,

[7:14] one is the cities. But usually that is also met with matching funds.

[7:20] Yeah, so we need to account for that. So one of the projects when we get into when we're talking

[7:25] capital for next year is some skate park improvements. That might be an avenue for us to

[7:30] Yes.

[7:31] I know a house.

[7:36] Sure.

[7:40] The county maintains it.

[7:43] The county names on the committee.

[7:47] And after they take their share.

[7:50] Because that is also how the county funds the free passes for the youth in the summer time at their recreational practice.

[8:00] Yeah, so it's again, it's crumbs at the end, so it's life.

[8:09] So there are some things that we will we will go after track again next year.

[8:14] We can do it this year because we were going after procreation bond money and the city didn't

[8:19] go after any higher, but you know what, if we end up off going forward and off going forward,

[8:24] I think that we're at that point.

[8:26] Why didn't they go for it?

[8:28] Was it in their term too?

[8:29] Yeah.

[8:30] Well, I think it's their term.

[8:31] And it's also, they have a new administration too.

[8:35] So I think that they, and they've been,

[8:38] they've been great in giving us $60,000

[8:42] towards these kind of projects.

[8:44] I mean, it committed that to a recreation bond

[8:46] that didn't happen.

[8:48] So if we were to find some grant money or whatever,

[8:51] I think they're always in for helping us

[8:53] comes to things and works or other things that we've had the ice arena roof was

[9:01] track funny yeah a long time ago and and it kind of used to be a fun where

[9:08] not many people knew about it definitely a lot more public and out there

[9:15] so but you can see we we don't really spend money in our requirements and it

[9:22] It just continues to go up the other building that's a lot of repairs and we try and work

[9:28] in what we can to repair the maintenance that maybe should be capital, but it ends up

[9:32] through repairs and maintenance.

[9:34] Yeah.

[9:35] So it kept in half the juggle that and he has to juggle that of where those things fall.

[9:41] So wages,

[9:46] so as we know employees are our greatest asset that we have, and they cost a lot of money.

[9:58] And so we spend about $3.5 million a year on salaries and wages, insurance, those kind of things.

[10:08] And, you know, I think we, in 2023 is when the last pay scale came out, we mean some

[10:15] significant adjustments, and that went right along with our last tax increase.

[10:20] We adjusted our full-time scale, and we adjusted our part-time scale.

[10:25] Since then, the full-time scale has been adjusted for coal as in there.

[10:29] So, people have, with evaluation, gotten their increases, but we've also adjusted that

[10:35] scale every year for coal as well.

[10:37] The part time scale, we've given merits where there are just, you know,

[10:43] where evaluations have been done in time and things like that have happened,

[10:46] but we've never adjusted that part time scale since 2023 for COLA's.

[10:51] And so it might be the right time to make that adjustment on the part time scale.

[10:57] We feel like the full time scale is, you know, we'd like to continue to adjust for the COLA and the merits.

[11:05] And, you know, happy to, because we have a lot of part-time stuff.

[11:09] Yeah, right now we're seeing that 362 employees in August.

[11:13] And only 26 of those are full time.

[11:15] Yeah, but wow.

[11:16] Yeah.

[11:17] So, I mean, our peak, I think this year was 389 or something.

[11:22] So, we have, I don't think people realize how many people we employ.

[11:26] No, people do.

[11:26] Because you look at this budget and you're like $3 million per staff.

[11:30] but you realize that a lot of people do not realize that.

[11:34] Yeah, we hire a lot of people and you know we've never we've been in 85-15s

[11:41] lit for health insurance for the last 15 years. You know we haven't never

[11:48] looked at changing that. We went from 100% to 90-10 to 85-15 and I feel like

[11:55] that's probably a fair enough place to. Yeah that's one thing that we like to

[11:59] to provide support for.

[12:02] Yeah, and, you know, like I said, I think we're competitive.

[12:06] I just, I think one of the things that we're going to look at

[12:08] is adjusting our parking fee scale to adjust the COLA.

[12:11] Yeah, we're necessary.

[12:13] So that's one of the other areas.

[12:16] CPI, the last three years, is an average of 3.2%.

[12:22] Sorry, I can't guess.

[12:26] Thank you.

[12:27] I'm sorry, I couldn't order to make it bigger

[12:29] from the screen. So that's an average of say 10% or that's a total of 10% okay. I'm sorry I do

[12:38] not know what CPI is. So that's the consumer pricing. Oh I didn't know what that is. Yeah yeah yeah

[12:45] got you. Sorry yeah yeah yeah so yeah no that always does that yeah that continues to go up. So with

[12:54] 26 also that doesn't include 26. It does not. So we just degenerate a gene

[13:00] where I am. I mean obviously CPI you have to just choose what your months are

[13:05] anymore. Yeah. For budget process, we've chosen to go August to August, but it's

[13:14] school. For school, it does a lot of the school district, it goes a lot of times.

[13:18] We've paid scale, but for this purpose I can't right now because I don't have

[13:21] August isn't over yet. It takes about six weeks to get those numbers. Sure. We don't usually

[13:26] know the exact number of August August or July until about six weeks after the month ends.

[13:33] So that gives you some information and then capital. So what we found, I'm good at holding on

[13:48] So these are our capital process, that's too big, so that's

[13:58] 20 to 26.

[14:00] 20 to 26 and you can tell, so 2020, we actually had a tax increase in 2019 and our 2020 budget had twice this amount for capital

[14:10] 2020 happened and we had to dial back significantly because of COVID and we

[14:16] were closed for a portion of that time and a very limited income and so we

[14:19] really have to cancel some of our projects and we scale back as much as

[14:24] much as we could. That should get $100 to be $100,000.

[14:31] So 2021 we went up, 2022 we

[14:34] We went up 2023's winter tax increase,

[14:37] we went in, right?

[14:38] Because that's the last tax increase.

[14:41] And our significant portion of doing that tax increase

[14:43] is capital.

[14:44] Well, over time, right?

[14:46] It drops again, so 2024 dropped, 2025 dropped,

[14:51] and you can look at 2026.

[14:53] That's all we had to spend on capital to share.

[14:56] That's one of them.

[14:57] The things I've noticed sitting in the seat I sat in.

[15:00] As long as they have, we capital starts to drop well below where it should be. It's time for a taxi increase. Yeah. And so that clearly gives you a little bit of a history of how much we have spent on where we spend on capital projects. No, that's very helpful. Thank you. I was going to ask you. Did that help? Yeah. 100%. Okay, because we're thinking, you know, the general public, we need to explain to them what we're doing, what's happening.

[15:29] Yeah, in fact, if you would send that to me, I would like it because I, you know, I found it's really good to have like

[15:38] Numbers in my head to discuss

[15:39] Yeah, absolutely. I can send this off to you and all you will also post it with our board anything I get to you

[15:46] I have a son of public interest right which is straight. That's great. So where did you spend the 500 on that?

[15:51] I think it was close to 500 thousand twenty-twenty-three. I don't know how it is, but we every budget season

[15:57] So, and you'll get to experience this first year, and so, starting next month, we start our budget process for 2027, and as a staff, collectively, and we've actually done a lot of, like, work pretty, that meeting that we're going to talk about in a second of capital projects, and we bring those generally to you guys as a board and say, here's our list of capital projects, and this budget starts to shape itself and determines how much we have left for capital, and then we start prioritizing the projects.

[16:23] With safety comes first, contractual comes first, matching funds come, those things start

[16:29] writing to the top.

[16:30] But then we also have to protect our investment, right?

[16:33] If the outdoor pool is totally failing and I can't open it, we've got to figure out a way

[16:38] to do that because we can't be who we are without some of those.

[16:42] That was the year, wasn't it, the ICE mechanical?

[16:47] Oh, it was.

[16:48] And also the pool.

[16:50] Yeah, it was a bad year.

[16:52] That's right.

[16:53] Everything broke.

[16:54] In our pool broke for, we were down almost like a night.

[16:57] And then I remember that.

[16:59] I remember that.

[17:00] I was down for a few years.

[17:01] Yeah.

[17:02] Because we had one type of project plan.

[17:04] We had to pivot that ice project to a different new project.

[17:07] It could be ice went down.

[17:08] Yeah.

[17:09] That's right.

[17:09] It was a bad year.

[17:10] But that's what we face because it's an old building.

[17:13] It's an old building.

[17:14] And the other thing to keep in mind right is we can have in Capitol Reserves.

[17:20] as much as our budget is. So in theory we can have six million dollars in capital

[17:24] reserves, right? A rainy day five. Yeah. We have 600,000. Right? I feel like it's

[17:33] very responsible as to at least have half that amount. Three million would probably

[17:37] be the right number to get strife towards. So as we do tax increases we need to

[17:43] say we're going to commit 50,000 or 100,000 in this. It's going to go into capital

[17:49] research like for those moments right and when we go through this capital

[17:53] list or just a second you'll see a couple of our account reviews are half a million

[17:56] dollars right now yeah I really think it's a public book except that you know

[18:01] presented like this right we have an old building we need to have some

[18:06] research when something not if when something breaks right you know and you know

[18:11] that you better know when you've seen it as you've seen it yeah when something breaks

[18:14] another thing is with we did a master plan and we in that master plan we left it

[18:21] open for the company of ECBO to come in and figure out what we're doing their

[18:27] recommendation is don't keep putting the old money into the old building start

[18:32] over and so that was what the master plan was based on and we were realistic we

[18:40] know we can't do it. $80 million. Unless we found a private donor of 60

[18:45] million, I don't I don't know how that becomes reality. I think if you had

[18:49] 75 or 80% even right that funds, the public would probably be up for doing a

[18:55] bond of 20 million to support the rest, right? But other than that, I don't

[18:59] want to keep bonding, right? And you know, it is a sort of

[19:06] object. Okay, and then we have a bond at since 2010 with our last bond. Oh, really?

[19:13] Yeah, we paid it off. We're about half inside. We're dead free. Actually, actually, we'll

[19:18] be free. Okay. So, here is since 2010.

[19:27] So, the one over here? Bonnie, you want to go over

[19:39] So the things we'll line up at the top is our bond, right?

[19:44] And the bars are what our property tax rate was.

[19:48] Together is what the community was paying.

[19:52] So when we took out the bond, right?

[19:53] Our tax rate was probably point a real rate at 75%

[19:58] of our property's rate.

[20:00] Does that make sense?

[20:02] I'm going to say it doesn't.

[20:03] OK, I don't understand.

[20:04] So OK, so this blue bar right here,

[20:07] Yeah, these bars all right here. Yeah, this is what our general property tax rate is so when you guys have property tax rate

[20:13] You know zero zero something. Yep. Okay. That's what this is, right? Okay, I don't understand the center

[20:19] So this is when we took out the bond

[20:21] If you look up here

[20:25] So the top number this board is that we were at 46% of our authorized rate if we had just property tax

[20:31] Because we added a bond we were taxing at 76% so you guys as

[20:36] property tax owners or paying 76% of our

[20:40] operators. So the bond has to be within our range. It doesn't know. We can go

[20:45] above. Yeah that's what I thought. It doesn't count you to point here 014. It

[20:49] does not count into that. You can go above your

[20:51] operators. We didn't for the amount that was

[20:54] bonded. We bonded for 4.9 million in 2010. So you we we chatted along, right? 2014

[21:02] there was a tax increase, that's how we jumped from 48% right here, 56% right, but we were that

[21:11] fund the bond, 90% roughly of the authorized rate. Okay, we chatted a lot again, we do another

[21:21] tax increase in 2019. This was the big one at the time, what's interesting and we'll talk about this,

[21:27] is we went for $750,000.

[21:30] We had to rip abandoned off at the time.

[21:33] It was a 47% tax increase.

[21:36] OK.

[21:36] So more than what the city is doing,

[21:38] not $3 million or $2.00, whatever their amount is, right?

[21:42] Which put us at 61% of our authorized rate.

[21:46] So 2020 happens.

[21:49] We get to 2021.

[21:51] And if you look down here, that was the year we paid off the bond.

[21:55] We made our last bond payment in 2021. Oh, yeah, yeah. Okay. What hit what our customers are

[22:02] No one realized this so in 2022 we dropped 42%

[22:06] And everyone said money by your no one realized we did a tax decrease. Yeah

[22:12] High say but because of the year in COVID, we didn't go for another bond

[22:17] We should have gone a bond neutral, right? We should have whatever that amount was three million two million five million

[22:23] and I don't want you to keep everybody at the same property.

[22:26] But it still has to go to a vote.

[22:28] It would have to go to a vote.

[22:30] But most people are like, well, you're not raising

[22:32] anything, you're just keeping that the same.

[22:34] Well, we've significantly dropped people's taxes pretty quick.

[22:38] And I don't think, if you went back into your 2022 tax,

[22:41] then you would notice a significant decrease.

[22:44] Nobody notices me.

[22:45] You're interested in getting a good, good, I didn't see it.

[22:47] Yeah, nobody notices me when you get home a decrease.

[22:50] No, I didn't see it.

[22:52] I didn't see it.

[22:53] So we knew that we needed to raise taxes again.

[22:56] So when you go back up 2023, we raised taxes, not quite as much.

[23:02] It was a 23% tax increase at the time, which was not enough.

[23:09] I'll be very honest.

[23:10] You can see it barely put us over the 50% and how fast you dropped.

[23:14] 2020, 2020 dropped.

[23:15] I know blurriers aren't just me.

[23:17] There's so many people.

[23:18] So we should count it up.

[23:20] 2019.

[23:21] 19. Oh, that's increased. It's the life. How did the public accept that? I don't remember. But I was about 40

[23:30] patrons here, or property cash owners, they came 19 of them spoke.

[23:37] Probably 15 to 16 had something to say about it or upset. We had three or four that just said I get it.

[23:46] this is where we're around where we need to be and then the board chose to stick with that amount.

[23:54] And 2023, even less people. Oh yeah, we agree. Yeah, agree. But that was how much of an increase.

[24:04] Do you remember? It was at 23 percent. 23 percent. But it was only in the amount of about 400.

[24:09] Yeah, 300,000, 450,000 wasn't as much.

[24:14] So continue to stay up on raising taxes every few years.

[24:18] Yeah, a percentage is as great.

[24:20] When we get to the slide that says $750,000 this year,

[24:24] it's only a 25% tax increase.

[24:27] Eight years ago, it was a 47% tax increase.

[24:30] We haven't done that for a year.

[24:32] And the dollar doesn't buy as much.

[24:33] True.

[24:34] True.

[24:34] So that's kind of the history of what pretty good what that is and what that looks like right now or 45% of our available tax rate right now.

[24:50] So really just, and Patty and I were talking about this, nationwide most districts and places

[25:01] that tax are 16 to 65% property subsidized by property taxes, 30 or 35 to 40% each of these.

[25:11] We seem to float right around 50-50.

[25:15] maybe the first year you do a property tax increase were higher obviously but it

[25:20] continues to yeah to drop yeah so and we can plug in numbers you know if you

[25:28] just go this amount this is where it would put us percentage wise or whatever and

[25:32] you understand we have the authority just a vote to change the taxes to the

[25:40] male levy amount so you could go point zero zero one for tomorrow if you want

[25:46] yeah yeah you have to go through the process but yeah you have to go through the

[25:49] process but that is our authority

[25:54] okay so that kind of gives you a little bit the history of how we've gotten to

[25:59] where we've gotten to all right okay

[26:06] so this is going to be really hard to see

[26:09] I apologize but um so we went through made kind of a capital project list from 2026 to 2040 so the

[26:20] next 15 years roughly um and this is still I think a growing living document and things more

[26:30] change, but we really wanted to get some things on the calendar, or on the schedule.

[26:39] Things we were choosing in the 2026, like Kevin is going to do the South Dakota work

[26:45] out of his repairs and maintenance budget, but sure, because it has to be done, and we

[26:50] didn't get prioritized for a capital project.

[26:54] And that's over the administration area, are that or are there?

[26:57] Yes, I believe that's that one.

[26:59] I think so. I think so. I think so too. There are so many. No, I think we talked about that.

[27:04] I think we talked about that a little bit. Yeah. Which were what?

[27:06] The multi-zone is this one, this one that we're melting. It does right now.

[27:10] It does again. It is finally cooling. I think we're going to, again,

[27:15] require some needs and maintenance. We're going to put some effort into it,

[27:19] but have a plan in the next few years to replace it. It really needs to be replaced.

[27:25] But what makes the most sense, in our dietary clusters already been budgeted for it is a capital project that starts on Monday.

[27:32] Good.

[27:35] He has a company coming out in the fall to identify the leaks in the article exactly where they're coming from so we know what issues we're dealing with for leaks.

[27:46] Besides the gutter, we think it's the pipe that feeds the mushroom that hasn't worked in

[27:52] six, seven years.

[27:53] Yeah.

[27:54] There's a crack, there's a leak somewhere.

[27:56] We just don't know if that's under the pool leak, if it's under the deck, where that leak

[28:00] is coming from, so leak detection, something is coming to identify that and any other leaks that

[28:05] we may have.

[28:07] So,

[28:09] And that's happening September October.

[28:11] Yeah, when the pool gets ready to shut down, so most likely it'll be the first part of

[28:14] So we're, um, that we can do that.

[28:18] So, um, so 2027, something that we've identified

[28:22] that really need to be taking care of,

[28:24] which are major capital projects, right?

[28:27] Um, men's locker room, air hand room,

[28:29] and the fitness room, air hand room,

[28:30] and if you work out in there, you will know.

[28:32] But, uh, really warm in there.

[28:33] Really warm.

[28:34] Especially pool packed.

[28:35] If you've walked into the especially pool,

[28:37] life cards are melting, um,

[28:39] we have to, we have to do some things

[28:41] to help just staff wise stay in a reasonable temperature because it will get up into the 90s

[28:47] somewhere and it's really hot. The specialty classroom downstairs, full pack over the

[28:55] stuff, the classroom. So that's a big one, right? And again, knowing that it's not realistic

[29:01] for a we're not prepared financially to spend half a million dollars on one unit next year.

[29:06] So what can we do to get us through a couple of years?

[29:09] So right now, it actually makes sense after fixing out our pool to do that, you know, right?

[29:16] And that's why you can see the half a million dollars to make sure.

[29:18] Okay, so tell me, what is that exactly?

[29:22] So that's an air hammer, you know, up over the splash.

[29:24] It's a half a million dollars.

[29:26] Those things are huge.

[29:27] Oh my gosh.

[29:29] Yeah, but they're, they're also because yeah, they're over swimming pool.

[29:34] They have to absorb all the moisture and the chlorine and they just get eaten up 20 years.

[29:41] Over 23 years.

[29:43] I was going to get rid of them.

[29:44] Yeah.

[29:45] And they're hungry.

[29:46] Especially over a pool.

[29:47] Is there a problem?

[29:48] They maintain the humidity and air is mature.

[29:51] Yeah.

[29:51] Let me think of your own food.

[29:53] Oh yeah, no, no.

[29:54] I'm just shocked to the price.

[29:55] I was like, wow.

[29:56] Yeah.

[29:56] And that's today's price.

[29:57] Oh, frying.

[29:58] No, that could be $600.

[29:59] Don't worry about it enough.

[30:04] So, you know, we're kind of gaffing on some of these. The diet team is being recost here, and it's actually 65,000 that we've edited. So, racing pool is the most likely $100,000, right? I mean, the cost of plaster has gone up significantly. The new covenants got to repair. We just got our first bid back to fix those. That's $125,000. And I asked having, if we can only do,

[30:29] We do gutter and coping stone next year, but the following year we can fix the plaster and the liner.

[30:35] Are we throwing good money away? And no, we can read, because we're going to keep the pool where it is, so the gutter can stay.

[30:44] College repairs are fine. You just carefully have to lift all the coping stones off and you replace them.

[30:49] Oh, so that's okay, right? Because I don't think we're in any place.

[30:57] We're not prepared timeline-wise to make outdoor pool project next year without knowing

[31:03] for sure where we're going to be in the truth and taxation process this year.

[31:08] So there's some pumps, there are, we have pickable outputs that have to be resurfaced and

[31:13] they should be on a schedule.

[31:14] We've done one through three, but we haven't done four through six, right?

[31:18] And so every five years, five to seven.

[31:21] I think we're on average, I think we're on average three to five, but that doesn't mean I think for tennis courts it was five to seven.

[31:30] They couldn't afford because they're so small because they have so much use of three to five.

[31:35] And we've been off four to six the last three years. Yeah, like it's a well pass.

[31:39] It's almost time to do one, two, three again.

[31:43] And I have about three years later, but it probably should be two.

[31:46] Bio water park fencing, this is part of the track project that got cut because of the cost of the fencing.

[31:53] I may guess it's two rounds of fencing, we're going to have to plan half and half, but fencing is easy, 75,000 or $1,000 per section or whatever.

[32:04] It's crazy how much fencing is.

[32:07] And some of our fencing is for your place, just pure safety.

[32:10] what's broken on the chain link.

[32:13] So by a lot of heart field improvements,

[32:15] I've talked to Andy, we might not be able to do 75,000

[32:18] all at once, but we've got 25,000,

[32:20] this build, 25,000, this build, 25,000 backfill.

[32:23] There's something I'm trying to work with,

[32:25] Lily, in what they can contribute.

[32:28] Oh, okay.

[32:29] Before you move that,

[32:30] I see these two big numbers there,

[32:32] 500,000 for new liner, a purple, plaster repair 350.

[32:37] So, as I think in conjunction, you fix the plaster, then do the liner on the floor.

[32:42] So that's what's happening now.

[32:44] The liner's being destroyed because the plaster is loose.

[32:47] If you walk on a shelf and weave more pastures.

[32:51] You can feel it in your feet.

[32:52] Yeah.

[32:52] And that also then turn ruining the liner.

[32:56] Yeah, of course.

[32:57] And really when this little splash pad, that is scary.

[33:03] It's crazy.

[33:03] That's crunchy.

[33:05] The elbow pulls are just sanding, the dough is crumpling.

[33:09] It's the same, yeah.

[33:10] Well, it could be very honest when we did this in 2010.

[33:15] We knew the liner, the warranty is like 12 years, it's lifespan is 15.

[33:20] So we're passed up.

[33:21] And it was definitely a band-aid to not have to repair the plaster.

[33:25] The outpoint, the plaster has been spilling on playing more and more and more and more and more.

[33:31] And I'm just making a guess when the plaster guys here next week will ask him for an estimate of true

[33:37] what it costs to. Where you do the plaster, but it might not be something you can do. It might have to be like a ZEM type company

[33:44] because they're going to be repair. I don't know how damaged the plaster. It's none of us do until we take that one.

[33:50] You mean like rebar and we come create?

[33:52] Okay, you say I'm going to be taking the hell down.

[33:54] Yeah, you're going to have to, we'll have to totally remove the liner.

[33:58] and then see what it's underneath there, see underneath because none of us, you can feel it, but I don't know what it looks like now, and what damage has been done.

[34:09] But so you can go through this list, right? This gay park upgrade is a photo star because I think that's something that we could look at for track.

[34:16] Really identifying working with Andy and whatever gay park company would look like.

[34:23] There's vehicles like parts that's definitely in the need of some side-by-side educators or

[34:28] whatever you want to call them, I don't know.

[34:32] But I mean that's over a million dollars already in capital projects that year, the following

[34:37] year is over a million dollars the next year, so I'm $150,000.

[34:41] And so but some of these projects obviously we won't have a million dollars.

[34:45] So what, what can we move, what has to move, what falls in the budget, but I think this

[34:52] is a good direction for us, like I know we don't have a boiler on here, boiler should

[34:56] be on here.

[34:57] When does that need to be replaced?

[35:00] There's some big things that are not on a schedule and never happen, unlike the chlorine

[35:06] exchange?

[35:06] Yes.

[35:07] Oh, it's the chlorine generator.

[35:08] Is it okay?

[35:09] Yes.

[35:10] I just put an X.

[35:10] I didn't put it in the mouth because Kevin were waiting for that estimate.

[35:13] I don't know what that was happening this year, no?

[35:16] That was a McKinsey project.

[35:17] Oh, so we're not doing it in the middle of this right now.

[35:19] But there were things about McKinsey project we can individually do.

[35:23] Basically, we're taking a lot of McKinsey stuff and breaking it up.

[35:27] It's true of this air hammer.

[35:28] Yeah.

[35:28] A lot of these controls were this part of the generator.

[35:32] But I kind of wanted you to get a feel of this is what we're up against.

[35:38] And I would guess of our air hammer and things like that.

[35:42] work without live their life expectancy, we're indefinite for our time on a lot of work but

[35:48] then unfortunately, right? Because nothing, it's the things that aren't sexy to get pushed down

[35:53] the road. For to quote them, they don't matter, right? And we need something sexy, the recreation boss.

[36:01] But it's very true, no one wants to pay for an air hammer. Yeah, a half million dollar air

[36:07] Yeah.

[36:08] They want to see you.

[36:09] Like, your own house, you don't want to pay for the...

[36:11] You'd rather put something cool in it.

[36:14] Right?

[36:14] It's called a dulcene.

[36:15] Yeah.

[36:15] It is a dulcene.

[36:18] And so...

[36:18] So, nothing new, nothing...

[36:21] Ooh.

[36:21] Big, nothing flashy.

[36:23] It's just maintenance.

[36:24] Kevin's working on getting me the ice stuff, because we don't have ice compressor information

[36:28] in this.

[36:29] Yeah.

[36:29] And in Oracle mechanical.

[36:32] So...

[36:33] There are things that need to be put into the schedule that we all kind of...

[36:37] follow or we know that it's coming out we know yeah and the only way to obviously make

[36:43] a pattern is a bond but people like I really feel like you bond for shiny and new and

[36:49] you raise taxes for capital improvements and a little bit of the O&M things how you balance

[36:57] out with user fees.

[37:00] Okay, so sorry, this is getting long, you know, really hot fees. So, where?

[37:12] Audrey, what did we call fees? I can't remember what we called that. I was just thinking of the comparison.

[37:17] and the, we do that with it.

[37:22] Please see if I stick that for a second.

[37:24] Yeah.

[37:24] Going back to the lake water, the utilities and everything.

[37:27] Just in tune.

[37:28] That also includes why you saw that skyrocket a little bit

[37:32] for grounds, because we also took over Butler Park

[37:34] at that point in time.

[37:36] Oh, that's right.

[37:36] You guys gotta remember that when it was the 2020-2022

[37:40] and then we got Butler Park,

[37:42] which increased that amount of water for our billing,

[37:44] which also hasn't been included for four passes or the grounds water does

[37:51] that include the city parks in that so that is strictly our park so when they say

[38:05] oh a lot of those are city the city should pay for it no that's that's purely

[38:11] ours.

[38:14] Okay, so how can like some things that we've already addressed are looked at,

[38:18] um, and kind of challenge us to look at admission fees, to look at membership fees,

[38:25] and then we're in the process of doing program fees. Um, so all things you use are fees.

[38:30] That's how we get to that other 45-50 percent of how we're offsetting our property taxes. Yeah.

[38:36] Um, and so this is a really big spreadsheet with a lot of numbers. But if you come down,

[38:42] these last four columns, that's the two of you, the lowest, below the sub three.

[38:54] So these last four blue column numbers is what we're going to talk about.

[39:00] So the 17,310, 40, and the 25,065. So the 17,000 is if we raised non-resident membership

[39:10] of these 10% and then next one is if we raise non-resident membership, these 15% that kind

[39:17] of gives you an idea.

[39:19] So resident non-resident?

[39:21] No, we're talking just non-resident-resident-resident-resident.

[39:23] Non-resident.

[39:23] Okay, full.

[39:24] 10% 15%.

[39:26] Okay.

[39:27] So entry fees are just, remember?

[39:28] Memberships only.

[39:30] Memberships only.

[39:31] Um, these two, these are residents and we went at 5% and 10%.

[39:37] So we raised memberships 5% on residents and 10% non-residents, 10% on residents, there's your numbers.

[39:49] We raised memberships these last year and I hesitate doing a huge residents increase if we're going to do a tax increase in the same group.

[40:01] Yeah, I didn't think we should do a little bit because you need to continue to keep up

[40:06] But I don't think it should be the same amount as a non-resident who's not getting back. I'm not paying the tax. Exactly

[40:12] A 15% increase on non-residents is a lot. I don't know if we lose some in that jumping up that high

[40:22] How far are the programs? I mean, I think that's a good so programs are gonna be different than numbers. Okay

[40:28] I'm sorry just and that's what we're doing right now. I'm so sorry. Well they can pull other facility numbers

[40:34] Yeah, our big X factor. We don't know as I can be right now, right?

[40:37] There's also open in January. I know we gain some people for sure. We hope that we keep

[40:43] Some of them. I know we won't keep all of them in reality

[40:48] But how do we find the balance of

[40:52] Non-resident keeping them versus losing them so we don't have a decrease in yes

[40:59] So I don't know if non-residents, you know, you consider like a 10% this year and we're going to do residents on five and next year we do non-residents again and we don't do residents.

[41:10] You know, I think there's some things we can go to kind of see with that.

[41:14] Yeah, that is. So we aren't, you know, calculating that.

[41:19] the other thing, we pull just people that pay an admission to the facility, like

[41:25] pure admission, at 91,000 people paid in admission last year. So if we raise a

[41:33] one dollar, put a mission, we would bring in 91,000 dollars in three. Yeah. So yeah,

[41:42] so I think there's a, and we, I think we, we feel really strongly that we need to

[41:46] raise adult youth and senior or daily admissions $1.

[41:54] That's it.

[41:54] $8 puts us in line with everybody else.

[41:57] Yeah.

[41:57] Same line.

[41:59] Youth is 14 and 14 to 17.

[42:02] So those kids that can take classes, they can use the rate room.

[42:07] They can use all the amenities in the jolt.

[42:08] They should be this same as adults.

[42:10] So they'll be $1.

[42:11] Oh, adults.

[42:12] And same with the senior.

[42:13] They'll be $1.

[42:19] I've never heard anybody complain about a daily entry fee here.

[42:23] Yeah.

[42:23] And you know where you're getting.

[42:24] But that puts us pretty much right in line with Murray as an outlier, because they're

[42:30] kind of subsidized.

[42:31] Subsidized.

[42:31] They're on an empty, exactly subsidized by the city.

[42:35] It puts us in line with the county's old rate, makes us a dollar more than their youth rate

[42:40] but most areas are on the three paths anyway so I'm not too worried about that but it puts us

[42:46] with curves, this currently charging more or South Davis is charging more of Valley and it puts us

[42:54] in line with the counties two or three income which is we have all the amenities that there are two

[42:59] or three reparations in our shops so so 91,000 there okay so I think there's a way to offset some of

[43:09] what the tax information is and then finally let me give you this. So this is our

[43:17] average home price went up. Thank you.

[43:23] And so 804, huh? Yeah, everyone up to 804. So the chart

[43:33] you're looking at, has, you can see the, whatever, six call them over the increase amount.

[43:41] So if you increase taxes by $300,000, and it goes down from there, $450,000, $670,000,

[43:49] and that's the percentage.

[43:50] And the percentage is at the far right.

[43:52] To a $750,000 tax increase is a 25% increase.

[44:01] And I'll be very honest, you have to go through the process today.

[44:04] but when we get to setting the tax rate next year,

[44:06] it will be less than that, because we don't collect anymore,

[44:13] but so we should probably calculate for that,

[44:15] because I mean, we can't, no, we have to go like that.

[44:17] No, just mental, yeah, mentally.

[44:19] Probably two, wish, two, three, three, yeah.

[44:22] I mean, I see the stat at all, but we're at any one

[44:25] of the three percent this year.

[44:26] Yeah, it's usually about that.

[44:28] Because our average home price, yeah,

[44:29] right before property taxes is $7.74.

[44:32] So if we looked at, say, 27, I'm thinking it's 25, you know what I mean?

[44:36] Right. Yeah.

[44:39] So, yeah, 27% brings into additional 800,000 or for say, we're going to offset by the user fees at the 100,000.

[44:48] Maybe 70's okay.

[44:51] Is there a typical amount that you try to raise each time you do this?

[44:56] So I will tell you if you go up to 150,000.

[45:00] That puts us at 57% on that chart, right? Am we aiming for 65%? That's national. I don't think we've ever tried being national. I think when we drop below 50, it's time to, I wouldn't go more than probably, I think we've been very conservative, we're probably seeing we're not going over 60-ish percent. Yeah. That's a difference of $71 per year. But you can see that inflation,

[45:29] and capital is going to eat it up within a few years.

[45:33] Yeah, easily.

[45:34] Yeah.

[45:35] Well, we have to be committed to saying like,

[45:37] okay, if you did 750,000,

[45:39] we were only going to buy

[45:43] 550,000 or 600,000 to capital.

[45:45] We need to put a hundred or a hundred or a hundred.

[45:47] Two or a day five.

[45:48] Two or a day five,

[45:49] but we also have to account for salaries and wages.

[45:51] Yeah.

[45:52] And so,

[45:54] we just have to be diligent in saying,

[45:57] here's how we're breaking the heart

[45:58] this pie, right? It's about, you know, we adjust the part 10k scale is 50,000.

[46:09] Just me, just

[46:10] to make a thousand dollars. And so do you say, you know, we get 75550 is capital, 50 is salary,

[46:19] adjustments, 50,000 is utility, 50,000 is savings. However, however the pie you want to break the pie,

[46:28] But again, you guys are the ones that have to go through public hearing questions and questions

[46:33] and where you feel comfortable.

[46:36] I will tell you, whatever amount you choose to proceed and do that, they go through

[46:42] it.

[46:42] They have to go through the public hearing, right?

[46:44] And if you had so much pushback and whatever, and you wanted to change your mind, you can,

[46:49] you can go less.

[46:50] You can't go more than what we've ever told you, what we've ever told you.

[46:54] You can always go less.

[46:55] Okay, I'll tell you that's a big headache to staff to have to adjust the budget pretty quick, but it can be done

[47:01] So you need to know we do have options in this process. Yeah, with all the work you've done

[47:07] What is the staff's recommendation of what they would like to see?

[47:13] That's the one

[47:19] That's 25% I'm just gonna put this in perspective

[47:21] from a three-person maintenance type of situation, right?

[47:24] Yeah.

[47:25] It seemed like every time we get this, it was three, four,

[47:27] four or five years, and we're going below that 45% mark.

[47:32] What's going to go out within the last five years?

[47:35] That's what you're really going to look at.

[47:38] Because I don't think we're going to bring in anymore

[47:41] in reality if our building starts deteriorating quickly,

[47:45] and if we're not getting big bombs or we're not

[47:47] getting our grants or anything like that,

[47:49] it's also something to look at.

[47:50] So I already know how this facility is. I mean, I was practically born in this facility. But at the same time, it's, I mean, parks are getting older, the building's getting older.

[48:02] We're struggling now to keep it up. So it's just something to look at. I'm not going to say about 100,000. So I'm not going to say any numbers, but I'm just going to put that.

[48:11] And it might make sense in two years to come back

[48:13] and do it 250, right?

[48:15] Like, yeah.

[48:17] You can, you know, I think what we're trending to see

[48:22] is not going in an election year.

[48:24] Then it doesn't hurt any of you.

[48:26] You guys, we all live here.

[48:28] So I'm looking at third column from the right.

[48:33] Yeah.

[48:33] I'm looking at for a year.

[48:35] For a year.

[48:36] Because that's what I would listen to.

[48:39] What's my fee going to go up next year?

[48:42] So if we went 25% to be $71.

[48:45] So if we go to $27% you're $76.

[48:48] And Jen can attest to this.

[48:52] How much does your real estate appreciate because of this?

[48:57] A lot.

[48:57] Exactly.

[48:59] I mean, my gut says, and this is just my gut.

[49:04] No, that's the stuff, this is what I'm going to do.

[49:09] Go for the 27, next year, it's going to be closer to 25.

[49:16] And I'll be shocked if it's not.

[49:18] Right, you'll probably be 24.

[49:20] Yeah, it'll be 24.

[49:22] And you know, during COVID, it went up over 10%.

[49:27] And, you know, it was just ridiculous.

[49:31] I'm leaning that way.

[49:32] because I'm looking at basically $75.

[49:35] Yeah, and then we get a lot of kickback

[49:40] then we can adjust it lower, but we can't go higher.

[49:44] That's kind of, I agree with Jan,

[49:45] it's kind of the way I'm great at start.

[49:47] Nice, a couple points more, which is good.

[49:52] And we'll see how much back we get.

[49:54] We all support that.

[49:56] I don't think I ever could feel like no, no.

[49:59] But yeah, I mean, there's plenty of projects

[50:01] on that list, you can see. But again, I think it's responsible as to decide the first couple

[50:08] years, we're just, we're going to put 50 or 75,000 into that fund to start building that fund for

[50:16] that next reason. I mean, anyone here can tell you and Laura will tell you, I hate to take from that.

[50:23] I mean, and when we're going through the budget process going, we're going to have to pull 200,000

[50:28] from that, just make the budget.

[50:30] And I will tell you that we used to not have that fund.

[50:34] We had, when I was doing that, we had $50,000

[50:40] to spend on capital, period.

[50:42] Nothing in reserves, nothing.

[50:45] So it's kudos to the staff for building it,

[50:50] and that's why they want to keep it going.

[50:53] No, I think it's an assessment.

[50:54] I'm just really happy for that.

[50:56] Yeah.

[50:57] Yeah, but that's just my I can't

[50:58] I'm looking at what it's gonna cost me. Yeah, 75 bucks. The city's tax is going to cost me a additional 207. Yeah, I

[51:08] Just have a look at that and not I mean look. I've never looked at that until

[51:16] Now I'm

[51:17] And you know, I

[51:23] So personally, but I know I'm not everyone, right, you know

[51:27] but I think we get a lot to that money.

[51:29] We do.

[51:29] In the city also taxes my electric bill, my gas bill.

[51:33] And it will tax this.

[51:35] So that's just hidden fees.

[51:36] We talk about it.

[51:37] We're hidden fees.

[51:38] We don't even know where we're paying it.

[51:40] Right,

[51:42] right.

[51:43] And we don't have opportunities to use it without a point of time.

[51:47] It's new growth.

[51:48] So it starts as new growth, and then it will be incorporated

[51:51] in the following year, because those won't be

[51:53] done so much during.

[52:01] That's the one thing that Kant would heights is build out except for these little teeny pockets that will get increases, but that's the only opportunity we'll get with that increases.

[52:13] turns is 75% buildout so they've got another 25% that they will gain and we will

[52:21] This is not much.

[52:25] That's what they're identity.

[52:26] They're $80.

[52:28] Are you serious?

[52:30] Are you serious?

[52:32] Are you started?

[52:33] Does that's a thing we call them?

[52:35] Yeah, they're not.

[52:36] I don't think I've started them.

[52:37] They're not 10 billion.

[52:38] They're not 10 billion.

[52:39] They're not 10 billion.

[52:39] There's a big number.

[52:46] but that's good for us because the taxes are higher and the gravel pit so the

[53:02] north part is annexed in but that gravel pit is not so we probably need to

[53:09] to talk to the developer, that's figure out, trying to get that done before they start

[53:16] breaking ground.

[53:17] They were on the City Council agenda last week and they spoke, that was a company called

[53:24] Rockworth.

[53:26] And I don't know if they have, they have the North end, another North end, but I'd like to

[53:32] to find that out to you.

[53:33] Some things that I don't really care about.

[53:35] Yeah.

[53:36] That's just being, you know, it's interesting, because it's

[53:40] a citizen.

[53:40] Yes.

[53:42] We'll tell him if they join the service area.

[53:44] We'll be nice there, too.

[53:45] We gotta do that.

[53:47] And because otherwise, we have to get each individual

[53:52] resident and that, we don't want to do that.

[53:54] No, no, no.

[53:55] That would be...

[53:56] No.

[53:57] No.

[53:58] No.

[53:59] I'm good.

[54:01] Okay.

[54:05] So I don't know, I guess I'm leaving for direction because I probably screwed up, I don't

[54:12] know if we have to formally make that decision and would it have to be listed as an agenda

[54:17] item, or in order for us to make truth in taxation, it does have to be on our September agenda.

[54:23] that's listed all this for the next couple of months.

[54:25] And we'll contact the assessor to make sure we have

[54:29] have it all right.

[54:32] So I assume that would be the formal process.

[54:35] I just wanna make sure what I'm hearing is

[54:37] you're giving me direction to go 800,000

[54:39] and for a percentage, 27%?

[54:42] 27%.

[54:43] Okay, there's 27%.

[54:46] So in our September meeting,

[54:49] we are moving to the 20 seconds of September.

[54:53] I'm so sorry, that's my fault, we will list, we have to list the details that we're

[55:00] intending to do truth and taxation, we have to list the amount, the percentage, all

[55:05] of the things that we have to do, so I just want everyone to be aware we'll be in a

[55:09] check-out.

[55:10] And like, December meeting will be when this public can come in.

[55:14] Correct, I mean the public, the public can come to any meeting, and they're, you know, they

[55:32] I think that's a good idea.

[55:36] And we can kind of ask questions.

[55:37] Yeah.

[55:38] We can totally set that up at that time.

[55:40] Okay.

[55:41] I mean, and then we can work on social posts and we'll get with our attorney and make sure

[55:47] that we will be processing our teasing by in our eyes so we don't be one of those entities

[55:52] that missed a step in that it doesn't happen even after we draw the crazy tip there.

[55:59] One thing is you're going into budget season.

[56:02] Please be conservative when you go into budget season that we don't blow this money that we

[56:10] try and figure out how to use it wisely.

[56:13] So, 1,000% and we, like I said, they've already asked our programs and lessons, we'll look

[56:21] at those, and we will make adjustments in user fees, memberships, so I was telling them

[56:28] that the programs that are filled, that are overflowing, that's that when you look at it.

[56:33] Oh, 100%.

[56:34] Yeah.

[56:35] Yeah.

[56:36] So, thank you.

[56:38] I'm Mark.

[56:39] Hi Mark.

[56:40] Hi Mark.

[56:41] Okay, with that we'll close at 4 o'clock.

Work Session and Board Meeting

Transcript