[4:09] city council meeting. Oh, there we go.
[4:12] And I'll go ahead and call the meeting
[4:14] to order.
[4:16] We have um Brandon Shamway here to give
[4:19] us our invocation and or inspirational
[4:22] thought and the pledge of allegiance
[4:24] will be led by Ashley Shamay. So, thank
[4:27] you for coming and doing that this
[4:28] evening.
[4:30] So you just come up here and
[4:38] » our dear heavenly father, we're so
[4:40] grateful for the opportunity we have to
[4:43] be here this evening in these chambers.
[4:45] We're thankful for um the freedoms that
[4:48] we enjoy uh in this country and in this
[4:51] state. We're thankful for this wonderful
[4:54] community that we live in. and we're
[4:57] thankful for the the leaders of our city
[5:00] that volunteer their time to to be here
[5:02] and do what's best for us, the
[5:04] constituents.
[5:06] We ask that you please bless the mayor,
[5:08] the city council, and the division
[5:09] heads. They can find common ground on
[5:12] some difficult issues that we have here
[5:14] in our city and and within our state and
[5:16] within our neighbors. And again, we're
[5:19] thankful for them. Uh, please bless the
[5:22] fire department, the firefighters, and
[5:24] the police department that are out
[5:26] working 24/7 to make our community a
[5:28] little bit safer. Please keep them safe.
[5:31] We say these things humbly in the name
[5:33] of thy son Jesus Christ. Amen.
[5:40] » Will you rise for the pledge?
[5:43] I pledge allegiance to the flag of the
[5:46] United States of America and to the
[5:49] republic for which it stands, one nation
[5:53] under God, indivisible, with liberty and
[5:56] justice for all.
[6:01] Thank you for the uh for the invocation
[6:06] in in leading the pledge of allegiance.
[6:08] Uh Mr. and Mrs. Shamway. Right. The
[6:10] first item on our uh on our scheduled
[6:14] items is a resolution of the UT Utah
[6:17] retirement safe uh I can't remember yours. There we go.
[6:22] [gasps] Um public safety and firefighter
[6:24] tier 2 hybrid employees contribution
[6:26] rate pickup. So I'll turn the time over
[6:28] to Jennica Jones for her uh
[6:31] presentation.
[6:37] Okay. Thank you, Mayor and Council. So,
[6:39] as you know, the city participates in
[6:41] the Utah retirement systems for
[6:43] employees retirement benefits. Um, and
[6:46] this includes public employees as well
[6:48] as employees there and the public safety
[6:50] and firefighters retirement systems of
[6:52] that uh program. So before you tonight
[6:55] is a resolution proposing that the city
[6:56] of ORM pick up the upcoming increase in
[6:59] the Utah Retirement Systems employee
[7:01] contribution rates for employees who are
[7:03] in the tier 2 public safety hybrid
[7:06] retirement system as well as for
[7:08] employees in the tier 2 firefighters
[7:10] hybrid retirement system. Effective July
[7:13] 1st of 2026, the employee retirement
[7:16] contribution rate for both categories of
[7:18] employees will be increasing from 4.73%
[7:21] to 5.98%.
[7:24] And the state legislature gives any
[7:26] entities that participate in URS,
[7:28] including ORM, the option to pick up
[7:30] this employee contribution rate for
[7:31] employees in the tier 2 public safety
[7:34] and fire hybrid retirement programs. Um,
[7:37] since that's been uh since there's been
[7:40] an employee contribution rate in these
[7:42] categories, that is something that the
[7:43] city has always done and we feel it's in
[7:46] the best interest of the city to
[7:47] continue to pick this up to show support
[7:49] for our public safety and fire employees
[7:52] and to attract and retain these
[7:53] employees. Uh, the vast majority of
[7:55] cities in Utah pick up this full amount.
[7:58] So, this will keep ORM competitive in
[8:00] regards to our benefits. So, uh, any
[8:03] questions about this resolution?
[8:05] >> All right, council. Um, do any questions
[8:07] for Jennica?
[8:09] All right. This is not a public hearing,
[8:11] but if there's anyone who has come who
[8:13] would like to speak to this, I'd give
[8:15] you a minute up here to do that.
[8:19] Um, seeing none, we bring it back to the
[8:21] council. I mean, for this re resolution.
[8:26] » Okay. Yeah. Just one comment. I'd like
[8:28] to say that I appreciate this
[8:30] opportunity to help um our public safety
[8:34] in creating a package that attracts them
[8:37] to our city and just some additional
[8:39] benefits for them
[8:42] >> because we really want to attract the
[8:43] best of the best. So, I I totally think
[8:46] this is a great move and I appreciate
[8:47] the opportunity we have to do that as a
[8:49] council.
[8:50] >> Thank you.
[8:51] >> Right. Thank you, Council Member Bell.
[8:54] All right. Okay. Um, Council Member
[8:56] Kilopak,
[8:58] >> Mayor, I move that uh to approve the
[9:00] Utah Retirement System URS public safety
[9:03] and firefighter tier 2 hybrid employees
[9:06] contribution rate pickup.
[9:08] >> Right. Thank you. I have a motion. Is
[9:09] there a second?
[9:10] >> I will second that.
[9:11] >> Right. We have a motion and a second. Is
[9:13] there any further discussion?
[9:16] All right. Council member Gail, we'll
[9:17] start with you. Have your vote.
[9:19] >> I. We go. Council member Muelline. I
[9:22] >> I
[9:26] >> my turn.
[9:26] >> Right. Motion carries. Thank you. Next
[9:29] item on the agenda is a public hearing
[9:32] regarding enterprise fund transfers. And
[9:35] I'll turn the time over to Brandon
[9:36] Nelson, our chief financial officer for
[9:38] that.
[10:20] Nothing
[10:31] we can do about
[10:39] screen.
[10:43] » All right, that's on right. Thank you,
[10:47] mayor.
[10:49] uh as part of uh our requirements, legal
[10:53] requirements to as far as uh presenting
[10:56] our budget, one of the first things that
[10:58] uh we had to do is um if there are
[11:02] transfers out of our enterprise funds uh
[11:06] that do not meet the qualifications as
[11:08] far as related to um specifically
[11:11] related to a cost. um then we are
[11:14] required to hold a separate agenda
[11:16] meeting to discuss the those items and
[11:20] there's a variety of items that uh we
[11:23] need to discuss as part of that uh as
[11:25] required by state law. Um the nemesis
[11:30] for uh these transfers is um some time
[11:33] ago uh the state auditor's office uh
[11:37] requested and required that we trans
[11:40] that we record the use by the city of
[11:44] various utilities primarily water,
[11:47] sewer, street lighting um and storm
[11:50] water services and that those be
[11:53] reported in those various funds. that
[11:56] used to be not a cost that the general
[11:59] fund had to bear. And so as part of that
[12:02] uh since it's basically this the city um
[12:05] within itself um we transfer those we
[12:09] charge those dollars to those enterprise
[12:11] funds and then immediately transfer
[12:12] those dollars back to the general fund
[12:15] to make it whole. So that there's in
[12:17] reality end up being no no effect um to
[12:20] any of the funds related um but we
[12:24] follow the that rule in doing so. As
[12:26] part of that uh we have to advertise
[12:28] that we are doing so and uh this is the
[12:32] result of that ad um those transfers. So
[12:36] um
[12:40] well maybe
[12:45] reason
[12:50] There we go. Can you use that?
[12:52] >> Oh, can you give me a mouse?
[12:55] >> So that that's basically what I've
[12:57] described here on this um slide is the various uh amounts that are
[13:03] transferred charged to the general fund
[13:05] and then the money transferred back each
[13:08] of those various funds.
[13:14] Um you can see the uh associated
[13:17] percentage of those amounts in relation
[13:20] to the total expenditures of those
[13:22] particular funds. Um and and how those continue to go down as the um each
[13:29] of those funds expenditures uh rise.
[13:35] Um as part of that uh this information
[13:38] we required to provide you with the
[13:40] utility revenue um associated with each
[13:42] of the those funds. So um you can see
[13:46] how those transfers um impact in our in
[13:49] relation to the revenues from those
[13:51] funds
[13:55] as well as um outlining the various
[13:58] expenditures for each of those funds as
[14:01] well. Um so that uh on the transfers
[14:04] back to the general fund you can see
[14:06] what the in essence the relative impact
[14:09] for each of those funds in relation to
[14:11] the amount being transferred back.
[14:14] Mayor could I pipe in really quick for
[14:17] those in the audience. We apologize for
[14:18] the technical difficulties. There are
[14:20] two screens back here that are working.
[14:22] If you wanted to move back you could see
[14:24] everything that's up there. Thanks.
[14:27] [snorts]
[14:31] Um
[14:33] then as part of the requirements then uh
[14:35] we are required to break down uh the
[14:38] administrative costs internal any
[14:40] internal transfers or transfer
[14:41] information. Um you can see on the
[14:44] second to last line on the bottom the
[14:46] transfer that's being returned to the
[14:48] general fund. Uh and then you know the
[14:50] associated other charges uh that are
[14:52] being charged to each one of the uh
[14:55] funds. Um this is not all-incclusive but
[14:58] these are the the particular transfers
[15:00] that obviously the total at the bottom
[15:01] is one of the items that we're
[15:04] identifying when you can uh as far as
[15:06] the totals go.
[15:13] Um then you see a breakdown of the
[15:15] utility uh fund each utility fund and
[15:18] there a breakdown of general categories
[15:20] within each one of those funds uh to
[15:23] give you an idea of you know the magnit
[15:25] again kind of give you the idea of the
[15:27] magnitude of the transfer that's being
[15:28] proposed.
[15:33] Same concept with contracted services.
[15:35] Um what kind of contracted services uh
[15:38] do each of those utility funds u have?
[15:41] Uh some of those are internal such as
[15:43] the 311 center and the uh public works
[15:46] um administrative uh assistants and
[15:49] engineers and the capital projects
[15:51] manager but many of the others are
[15:52] external such as uh central Utah water.
[15:55] Um so just to give you an idea of the
[15:58] breakdown in within those contracted
[16:00] services
[16:04] and
[16:06] any questions about these transfers.
[16:09] >> Right. Thank you for the presentation.
[16:10] Council, do you have any questions?
[16:12] Council member Mikum.
[16:14] >> Um, two things, Brandon. One, maybe I'll
[16:17] just try to play this back to see if I
[16:18] understand it correctly
[16:20] >> and correct me if I get anything wrong.
[16:22] >> You bet.
[16:24] >> So, state law is requiring us
[16:28] to pay for uh city utilities out of the
[16:32] general fund at at market rates. And
[16:36] historically, we have paid for those out
[16:39] of our utility fees. Uh, and so what
[16:42] you're asking us to do tonight is to
[16:44] approve transfers from our utility fees
[16:48] into the general fund for the purpose of
[16:49] doing what those fees have always done
[16:52] to pay for our city property utilities.
[16:55] 100% correct. Okay. Uh, can you go back
[16:58] to this this the page that has the
[17:00] percentages on it? It was one of the
[17:02] first slides that you showed us.
[17:06] um help me understand how to interpret
[17:09] this page. So is one way of interpreting
[17:12] this page to mean that when you look at
[17:16] all of our utility fees that we collect
[17:20] um that approximately 3.7%
[17:25] of the of those utility expenses are
[17:28] city property.
[17:30] >> Yes. For the water.
[17:32] >> Correct. Uh and 808% for for sewer.
[17:36] >> Correct. Okay. Which makes sense. We
[17:38] have a lot of things we water parks
[17:41] [clears throat] primarily.
[17:41] >> Yeah. And fewer people who use the sewer
[17:44] than perhaps residencies. Okay. Um and
[17:47] so that that just represents the
[17:49] approximate percentage of utility fees
[17:53] uh in those funds that we're
[17:54] transferring into the general fund for
[17:56] the purpose of paying our city
[17:58] utilities. Correct. Okay. Uh those were
[18:00] my questions. Thank you. Okay.
[18:02] >> All right. Thank you, council. Any other
[18:05] questions?
[18:07] All right. This is a public hearing, so
[18:09] I'm going to go ahead and open the
[18:10] public hearing. If you would like to
[18:12] come and speak to the Enter Enterprise
[18:16] Fund transfers, we invite you to come up
[18:17] here and state your name and um please
[18:20] limit your comments to three minutes.
[18:27] All right. appears nobody wants to come
[18:29] and speak to the enterprise fund
[18:31] transfer. So, I'll go ahead and close
[18:32] the public hearing and bring it back to
[18:33] the council.
[18:35] So, do you
[18:38] >> There's no motion or anything. It's
[18:39] purelyformational.
[18:41] >> It'sformational. Okay. I was going to
[18:42] say I don't see an action here. So, it's
[18:44] just So, there's no motion that needs to
[18:46] take place. Okay.
[18:47] >> It is embedded within the uh budget.
[18:51] Okay. Or would be passed. So,
[18:54] >> all right.
[18:55] So
[18:58] with that, we'll go ahead and move on to
[19:01] our next public hearing. It's an
[19:03] ordinance municipal officers
[19:06] compensation adjustment. So Mr. Nelson,
[19:09] I'll turn the time over to you.
[19:18] » Okay. Thank you, Mayor. um as part of uh
[19:22] Utah code uh se section 10-3-818
[19:26] that was um made into law appro three
[19:30] year went into effect three years ago.
[19:32] So this will be the third year that
[19:34] we've been required to present this
[19:36] information. Um we are we're required to
[19:39] present um the certain officers of uh
[19:43] the city uh within
[19:46] um a separate agenda item and and
[19:49] exhibit and uh the item the people who
[19:54] are I shouldn't say the people the
[19:56] employees who are listed within this uh
[19:58] fall within uh what we deem to be uh
[20:01] officers um executive officers of the
[20:05] organization and listing the proposed
[20:08] increase for the upcoming fiscal year uh
[20:11] in relation to any merit increases or
[20:14] market increases. Um and as you can see
[20:18] uh through here um
[20:21] all are at 3%
[20:29] um for their a merit increase. that's
[20:31] what has been budgeted and then all all
[20:34] are zero as far as a market increase in
[20:37] relation to that. Um just to and and
[20:40] part of that law was to make sure that
[20:42] there was transparency in uh executive
[20:45] management since executive management
[20:47] has some level of control over over the
[20:50] wages. Um so this way it was um uh shown
[20:55] to everybody what the budgeted intent
[20:57] was. Um there this particular element
[21:01] there's there's nothing inconsistent
[21:03] with what we normally do. Um as far as
[21:06] budgetarily speaking goes. Um and as far
[21:09] as wages go uh for all of our all of the
[21:12] individuals who either don't qualify as
[21:14] officers or are in the STEP programs. Uh
[21:17] those are just part of our normal
[21:18] budgeting procedures and are part of the
[21:20] budget as well and and have been
[21:22] budgeted at the same whatever their step
[21:25] is. I believe almost all of those are at
[21:27] 3% but um whatever those step that step
[21:30] program is for individuals uh those are
[21:33] also budgeted as well. So I just thought
[21:35] I'd better uh make sure that uh that's
[21:37] understood that this is not
[21:39] all-inclusive list of every employee. It
[21:42] is only those people who are deemed to
[21:44] be municipal officers.
[21:47] >> Right. Thank you council. Do you have
[21:49] any questions?
[21:51] All right. This Oh, okay. Um, Council
[21:54] Member Mikum.
[21:57] » So, talk to me about the difference
[21:58] between merit increase and market
[21:59] increase. Uh, I'm I'm just curious as to
[22:02] whether a cost of living adjustments um
[22:05] are reflected in the market increase as
[22:08] zero or if they are um potentially in
[22:11] some other place.
[22:13] >> So, so we don't do colas.
[22:15] um we simply look at the uh what we
[22:20] intend to provide as far as a a merit.
[22:24] So there each employees um what what
[22:28] they providing to the organization and
[22:30] determine uh a this isn't necessarily
[22:33] what they would get. it's a if you will
[22:36] a maximum uh we in I say that obviously
[22:40] we generally intend to give that u but
[22:43] there may be a case where that's not you
[22:45] know case obviously if one of the
[22:48] employees is listed here for instance
[22:49] was to leave the organization prior to
[22:51] that then those budget those budgeted
[22:54] dollars are available for other needs
[22:56] potentially um but if they were here
[22:59] then uh there's every intent um to
[23:01] potentially provide that level of a
[23:04] merit increase
[23:06] um market is based on comparative to
[23:10] other uh entities and positions outside
[23:13] of the organization and where that
[23:15] particular uh type of work might fall.
[23:18] Um so if you're talking about a um
[23:21] accountant or an engineer um potentially
[23:24] the market for those particular
[23:25] positions maybe at a given time is
[23:27] higher. Um and so you you potentially
[23:30] could provide a market increase in
[23:32] relation to those specific positions. Um
[23:35] and so that's what those two different
[23:38] is between that. Uh I'm not sure how to
[23:41] necessarily address
[23:44] that that makes sense to me. the so what
[23:47] I'm in inferring from what you've said
[23:49] is that because we don't do cost of
[23:51] living increases that um the proposed
[23:55] merit increase would be a 3% that would
[23:58] be the potential salary increase for
[24:01] these officers. Uh there's not an
[24:02] additional amount that would be
[24:04] somewhere else. Okay.
[24:05] >> Correct. And we we do budget um for a
[24:08] mid-year adjustment as we look at every
[24:11] single position. Um those there's a 1%
[24:14] set aside for a when we look go out and
[24:18] look. So identifying in relation to
[24:20] market uh for specific positions. So
[24:23] that's not a general across the board.
[24:25] It's it's evaluated by every single
[24:28] position. And so then those funds become
[24:29] available at that midyear mark to fund
[24:32] that.
[24:36] All right. Thank you. Are there any
[24:37] other questions?
[24:39] Seeing none, um I this is a public
[24:41] hearing and so I'm going to go ahead and
[24:43] open the public hearing for this
[24:45] ordinance on municipal officers
[24:46] compensation adjustments. So if you've
[24:49] come to speak to this, please come
[24:50] forward and and share your thoughts.
[24:58] Appears nobody wants to share their
[25:00] thoughts about municipal officers
[25:02] compensation adjustments. So go ahead
[25:03] and close the public hearing and bring
[25:05] it back to the council. This this
[25:07] particular item council does require an
[25:10] action on um from us.
[25:20] Do you want a motion?
[25:21] >> I would love a motion.
[25:23] >> I'll do it. I move that the city council
[25:25] of the city of Orm enact the
[25:26] compensation increases for the specific
[25:28] city officers as contained in exhibit A
[25:30] and adopt these compensation adjustments
[25:32] as part of the adopted fiscal year 2026
[25:34] 2027 tenative interim budget. All right.
[25:38] Thank you. We have a motion. Is there a
[25:39] second?
[25:41] >> I will second that.
[25:43] >> All right. Thank you, Council Member
[25:44] Mikum. Is there further discussion?
[25:46] Council.
[25:49] All right. Um how do you vote? Council
[25:50] member Mulestein.
[25:52] I
[25:53] >> I
[25:58] >> All right, motion carries. Thank you.
[26:01] Um, next item on the agenda is a
[26:04] proposed property tax increase
[26:07] statement.
[26:08] And so this does not require action
[26:10] council. It's just that our um Brandon
[26:13] Nelson, our chief financial officer, is
[26:14] going to make a statement.
[26:17] So I took the time over to you to state.
[26:19] >> Yes. So under new uh uh state law uh
[26:23] anytime there is a budget discussion um
[26:27] that regards that has a property tax
[26:29] increase component to it, I am required
[26:32] to notify everyone here that the item
[26:35] that we are going to be discussing as
[26:37] far as the fiscal 2627 budget has a
[26:41] property tax increase in it. And that's
[26:44] really all that I'm required to stay for
[26:46] that particular element agenda.
[26:48] >> All right. he has stated.
[26:50] So with that we'll go on to item 4.5.
[26:56] He is going to state something else
[26:58] proposed property tax increase impact
[27:00] schedule. So go ahead and state.
[27:04] >> All right. So uh as part of uh the
[27:07] discussion in relation to a property tax
[27:10] increase uh we have prepared um based on
[27:14] uh the state law the required elements
[27:17] to be addressed um within this uh
[27:20] property tax impact schedule. Um as part
[27:23] of that schedule uh you'll see that uh
[27:26] we are proposing a rate increase um
[27:28] above the certified um tax rate which is
[27:32] the current fiscal year or current 2025
[27:37] certified tax rate uh as we have not yet
[27:40] received um the 2026 certified tax rate.
[27:45] The they state tax commission and the
[27:47] county and the auditor have basically
[27:49] until June 22nd to provide that. um
[27:52] they're they are working I've received
[27:54] emails and they are working diligently
[27:55] to try to get it prior to that date, but
[27:58] obviously not in time for this meeting.
[28:00] So therefore, all we can do is provide
[28:02] an approximation of uh what that might
[28:06] look like. Uh and based on the amount of
[28:08] money, the $450,000
[28:11] being requested uh for property tax uh
[28:13] revenue increase, uh you can see the the
[28:16] proposed uh change above that certified
[28:19] tax rate from 00603 to 00645.
[28:24] Um and as part of that, you can see the
[28:27] associated um uh revenue that was
[28:30] budgeted was the 6.4 million. That was
[28:33] an an [clears throat] estimated amount.
[28:34] And then uh just below that you can see
[28:37] the 6.864 million which equates to the
[28:40] $450,000
[28:42] increase. The estimated increase um in
[28:46] that uh property tax rate above the
[28:50] certified tax rate is 7.02%.
[28:53] >> And that is just for the ORM city
[28:55] portion.
[28:56] >> This correct the entire property on
[28:58] one's entire property tax bill.
[29:00] >> Correct. It would be just the city's
[29:02] component uh piece. Sorry for
[29:03] interrupting your state.
[29:04] >> Property tax bill. Yeah.
[29:06] >> And I want to interrupt too. The the
[29:08] percentage
[29:09] that this will be of their property tax
[29:13] total property tax bill. Do you remember
[29:15] was it 07?
[29:17] >> It was like nine.
[29:19] >> Where's the You know what I'm trying to
[29:20] say?
[29:20] >> Yeah, I know. But I don't know what
[29:21] >> you gave that six months and I'm trying
[29:23] it was okay. You don't have that written
[29:25] down. I don't. But just to the point
[29:26] that the mayor's making is that the
[29:30] majority of the property tax dollars
[29:33] collected, we are but a small percentage
[29:36] of that.
[29:37] >> Yeah. The city's portion of your
[29:39] property tax bill is approximately 13
[29:42] 14%.
[29:43] total property tax
[29:45] >> because the other taxing entities are
[29:46] the school district, the water,
[29:49] the county, the
[29:50] >> Yeah. So this is that 7.02 102 is in
[29:53] relation only to the city's piece of the property tax bill.
[30:03] As part of uh uh the transparency, uh we
[30:07] also are required to provide you with an
[30:10] estimate based on uh the average um
[30:14] primary residential value of 513,000
[30:17] that comes from the that number amount
[30:20] comes from the county. So, not something
[30:22] I just pick out of thin air. Um, the
[30:24] county provides that and the associated
[30:27] uh with that associated tax increase in
[30:29] the rate, the increase in the rate, that
[30:31] would equate to an $11.85
[30:35] annual increase to a property valued at
[30:38] 513,000, which you can see equates to a
[30:42] 6.97%
[30:43] increase.
[30:45] um associated the commercial
[30:48] establishment valued at 513,000
[30:51] would see an increase of $2757
[30:55] annually and again that's an 8.91%
[31:00] increase um for a business valued at
[31:03] that 513,000.
[31:06] Um, part of this is also identifying
[31:08] what is that $450,000
[31:10] requested um increase going to and the
[31:14] intent here is to fund uh two police
[31:17] officers uh and their associated all of
[31:21] the associated uh vehicles and equipment
[31:23] in relation to uh fully outfitting those
[31:26] two officers.
[31:28] Are there any questions about any of
[31:30] those items that I've mentioned?
[31:32] >> I just have a question with this
[31:33] intention. This is where the money would
[31:36] have to go. We can't as a council, not I
[31:38] have absolutely no intention or
[31:40] anything, but I know that there have
[31:41] been questions of could the city council
[31:45] as a council vote to have it go
[31:46] somewhere else if it were to be enacted.
[31:48] It has to go for this because you've
[31:49] stated this is the intent of what it is,
[31:52] how much it is, and where it's going to
[31:53] go. Is that correct?
[31:54] >> That is correct.
[31:55] >> Okay.
[31:56] >> Yep. If if we were to move forward and
[31:58] try to use something else for that those
[32:02] funds, then they would deem that as, you
[32:04] know, not following what what we've
[32:07] indicated we're going to do and they can
[32:09] pull it back potentially.
[32:12] >> All right. Thank you.
[32:15] All right. Anybody other comments? Thank
[32:18] you for your Oh, do you have Okay,
[32:19] >> one brief comment. So, um I I think this
[32:23] was implicit in what you said, Brandon,
[32:25] but I I just want to repeat it uh to
[32:27] ensure that I'm I'm correct. Uh so, for
[32:32] what we think is an average
[32:34] primary residence value of about
[32:36] $500,000,
[32:39] uh the implication of that for a
[32:41] taxpayer in that category would be uh $1
[32:45] a month essentially.
[32:47] >> That's correct.
[32:48] >> Uh slightly less than $1 a month. um or
[32:52] um annually less than the cost of a
[32:54] movie theater ticket every place besides
[32:56] the Sarah.
[32:58] >> Right. Right. Okay.
[33:02] All right.
[33:04] With that, thank you for stating your
[33:07] statements
[33:08] and we're going to move on to item 4.6.
[33:13] It's a resolution the creation of public
[33:15] safety special revenue fund and
[33:17] statement of intent to dedicate the
[33:19] general operations portion of property
[33:22] tax to public safety. And so council, at
[33:26] some point this is going to require an
[33:28] action and we'll turn the time over to
[33:30] um Brandon Nelson.
[33:35] » Thank you mayor. Um, as we've discussed
[33:38] uh several times, um the fiscal 2627
[33:42] budget um does contain the separation
[33:45] and creation of a new special revenue
[33:48] fund. Um there was some confusion in
[33:51] relation to the May 12th tentative
[33:53] meeting as far as the resolution that
[33:55] was associated with that. Um that
[33:57] resolution was simply uh intended to be
[34:01] uh indicator
[34:03] of what was uh in intended to happen uh
[34:07] in the meeting uh today. So in the
[34:10] meeting today um what is being requested
[34:13] is um a two totally separate items.
[34:20] One is the creation of a special revenue
[34:22] fund
[34:24] for public safety and that all
[34:28] associated revenues and costs would be
[34:31] placed within that special revenue fund.
[34:35] Separately from that approval is a
[34:39] statement in the resolution that states
[34:43] the intention
[34:45] of the city council to approve the
[34:48] dedication of the city's property tax
[34:51] levy to that newly created special
[34:55] public safety special revenue fund. That
[34:59] intention is the reason it's an
[35:01] intention is because we if we move
[35:04] forward with a property tax increase
[35:08] proposed that meeting is in a on August
[35:12] 27th and so property taxes would not be
[35:16] that levy would not be set until that
[35:19] August 27th meeting. Therefore,
[35:22] the intent is to go to that meeting to
[35:25] approve not only a potential property
[35:28] tax increase, but approve the full levy
[35:31] and and the dedication of those property
[35:34] taxes towards that public safety special
[35:38] revenue fund.
[35:40] Those this that's a separate item from
[35:44] the creation of the special revenue
[35:46] fund.
[35:47] >> So, can I just ask a quick question?
[35:48] >> You bet.
[35:50] So, this this resolution in our packet
[35:53] creates the special the public safety
[35:54] special revenue fund. I want to make
[35:56] sure I understand creates that fund and
[35:59] then states the intention that we will
[36:02] be putting the regular general
[36:05] operations property tax levy into that
[36:08] new fund. But we can't do that until
[36:11] after the truth and taxation hearing on
[36:13] until we find out whether the council
[36:15] approves or denies the property tax
[36:17] increase.
[36:17] >> Correct. Okay. Thank you.
[36:20] >> And so just then kind of back up a
[36:22] little bit. So what why are we
[36:24] interested in uh creating a special
[36:26] revenue fund? So number one is we feel
[36:29] like that it provides a a better
[36:32] transparency for what the cost of our public safety is and it specifically
[36:37] outlines those the revenues associated
[36:40] with them as well as the cost all of the
[36:43] costs associated with the public safety.
[36:47] um departments. Um as part of that, if
[36:52] we were to move forward with dedicating
[36:54] the city's property tax to public
[36:57] safety, then it is required that we have
[37:00] a special revenue fund to account for
[37:04] those dollars.
[37:06] But that does not mean we can't have a
[37:09] special revenue fund even if those
[37:11] dollars are not dedicated. So you could
[37:14] still create a special revenue similar
[37:16] to what we've done with our development
[37:18] fees fund where we separated out all of
[37:21] those items related to building permits
[37:25] and planning and that those are
[37:27] separated into a specific fund so that
[37:30] we can see what the costs associated
[37:33] with providing those services are. So
[37:36] they're very similar in that nature.
[37:40] Um
[37:46] just to give an idea. So currently as of
[37:50] fiscal 26 um the total u budget for fire
[37:56] and police within that fund is just a
[37:59] little over $38 million.
[38:02] $38.1 million.
[38:04] Uh the property tax that we're
[38:06] discussing is approximately estimated to
[38:09] be 8.1 million.
[38:12] Obviously, there is a rather large
[38:14] discrepancy between those two. Uh I know
[38:18] there has been some concern about well,
[38:22] you're just going to raise a property
[38:23] tax to cover that $38.1 million.
[38:27] Number one, if that were to occur, that
[38:30] would take a very, very, very long time
[38:34] to get to that point.
[38:37] Number two, we understand that that
[38:39] isn't really that's not our goal. But
[38:42] the goal is to provide some level of
[38:44] stability to our public safety from one
[38:48] of our most consistent and dedicated
[38:52] sources of revenue. that does not vary
[38:56] based upon the economy. We receive the
[39:00] same amount of tax dollars from property
[39:02] tax every year without us doing
[39:05] anything. So when it's set, we get the
[39:08] same amount irregardless of how the
[39:10] economy is doing. So it's a stable
[39:13] source in relation to one of one of our
[39:16] core services of the city. So, we would
[39:19] like to bolster as much as possible the
[39:23] relationship between that property tax
[39:26] and our public safety um departments
[39:38] as part of the the timeline. Just to
[39:40] give an idea, obviously we had the our
[39:42] tenative budget discussion on May 12th.
[39:44] Um, which again we outlined the the
[39:47] intention to want to move ahead with
[39:49] creation of the special revenue fund and
[39:51] dedicating the tax. This resolution puts
[39:54] that more into line and spells out
[39:56] exactly what we would be doing as far as
[39:58] what I've already discussed as far as
[40:00] whether to create that. Um it was
[40:03] brought up the the special revenue fund
[40:06] while we would we would love for that to
[40:07] be approved tonight um that's not a
[40:11] requirement it could be uh along with
[40:13] the dedication of the um property tax in
[40:17] August that special revenue fund you
[40:19] could go ahead and and wait and create
[40:22] that um as part of the August meeting as
[40:26] well. um we would prefer to at least
[40:28] have the fund created um now um whether
[40:32] it's funded or not. That that is a
[40:35] different story. Um and can be
[40:37] determined upon adoption of the final
[40:39] budget in August if if necessary.
[40:46] As mentioned, uh this meeting is to
[40:48] discuss those things and we've talked
[40:50] about uh the various things related to
[40:53] the property tax increase and that's all
[40:55] that this uh slide is is indicating is
[40:59] those things that I just mentioned in
[41:00] that property tax impact statement.
[41:04] And then uh as mentioned at the TNT
[41:08] meeting on August 27th of this year, we
[41:11] would be discussing um not only the
[41:14] property tax increase and and whether to
[41:16] approve that or not approve that
[41:17] increase, but we'd also be discussing
[41:19] the dedication of the city's general
[41:22] operations property tax in that meeting
[41:24] and whether we would be dedicating that
[41:27] um to public safety or not. as well as
[41:30] the um discussion um around uh
[41:35] the special revenue fund potentially.
[41:40] » That's all I have in
[41:41] >> All right. Thank you, council. Any
[41:44] questions? Council member Millet,
[41:47] >> some comments and questions. Um your
[41:49] first slide, will you go to that,
[41:50] please?
[41:55] » Yeah, let's see. Where did I see this?
[41:57] Um,
[41:59] okay. So, although we are legally
[42:02] restricting all property tax collected
[42:04] into this fund to public safety, we are
[42:07] not clarify for me this please and
[42:10] Steve. We are not tying the hands of
[42:12] future councils
[42:14] to this is a decision that will be made
[42:16] every year based through our budgeting
[42:18] process. This is not an automatic. This
[42:21] is something that is always considered.
[42:23] But what this fund does is this gives us
[42:26] the opportunity to have more
[42:27] transparency in where those funds are
[42:31] going, that they are going to our public
[42:33] safety. And that um not just the
[42:36] property tax funds, but all of the
[42:38] revenues that our public safety is
[42:41] generating through contracts with other
[42:43] cities, through um other licensing,
[42:46] whatever we're doing. There's a whole
[42:48] list, right?
[42:49] um will go into that fund and will not
[42:52] be absorbed into other to subsidize
[42:55] other areas of our budget. Once again,
[42:57] transparency saying we are funding our public safety and this is how we're
[43:03] doing it and we're letting them those
[43:05] revenues that they generate stay in
[43:07] their um budget.
[43:08] >> Correct. Is that correct?
[43:09] >> Yeah. Let let me Is that fair?
[43:11] >> Yeah. Let me let me make just restate
[43:13] that. So, thank you for bringing that up
[43:15] because I I did fail to mention that. Uh
[43:17] yeah. So this in no way what if if we
[43:20] were to move all of these things to a
[43:22] special revenue fund and that property
[43:25] tax and and you were to dedicate that
[43:26] property tax that dedication occurs
[43:30] every year. Every year you pass a budget
[43:35] you are dedicating the property tax as you would like to see it dedicated.
[43:41] Whether that's to the special revenue
[43:43] fund or if you wanted to then move it
[43:46] back to the general fund and and place
[43:48] it there, you have the ability to make
[43:50] that change. And then again each year
[43:55] you could also potentially if you had
[43:57] moved that property that dedicated
[43:59] property tax back to the general fund,
[44:01] you could also discontinue the use of
[44:03] the special revenue fund and you could
[44:06] move all of the public safety back into
[44:09] the general fund if that if you so
[44:11] chose. Now obviously again the dedicated
[44:14] piece of that makes the difference,
[44:15] right? If you're going to continue to
[44:16] dedicate that to public safety, it has
[44:18] to stay separate. But if you were to
[44:20] move it all back, you have that
[44:22] flexibility andor the members after
[44:25] yourselves always have that flexibility
[44:28] >> because there are members of the public
[44:29] who are comparing this to the
[44:31] constitutional
[44:32] um direction from the state income tax
[44:37] to education.
[44:38] >> Correct.
[44:38] >> And this is not even close to that.
[44:41] >> Not even close.
[44:43] I just want to make that
[44:45] clear because I have had a lot of people
[44:47] say that to me. you are now
[44:50] tying the hands of everybody into the
[44:51] future. And I'm like, "No, no, no.
[44:53] That's not it's not even."
[44:56] >> And and that's why we pass a specific
[44:58] ordinance specific to that fiscal year
[45:02] each year is because each year you're
[45:04] dedicating this is what it looks like
[45:07] for this fiscal year.
[45:08] >> And actually these people, same people,
[45:10] I just say you're going to love this
[45:11] because this is transparency in action.
[45:14] >> Correct. This is where you will see
[45:16] exactly money coming in staying with our
[45:20] public safety and how frankly holding
[45:24] them to account too with how they're
[45:26] spending that money.
[45:27] >> You bet.
[45:27] >> It will be just a much more transparent
[45:29] action.
[45:30] >> That's our that's our feeling as well.
[45:32] >> Okay. Thank you, Council Member Millet,
[45:34] for for clarifying that you brought up
[45:36] that's a good point to remember that it's not like the Constitution, the
[45:40] state constitution, that this is
[45:41] something that we have to look at every
[45:43] year. But you also brought up another
[45:44] good point and that is that if public
[45:47] safety does receive additional funding
[45:50] in other areas uh maybe for wildfire if
[45:53] they've gone to fight wildfires or
[45:55] contracts with other uh other
[45:57] communities that that money goes into
[46:00] this as well. So there's there's
[46:02] accountability and and showing and
[46:05] transparency saying what this is the
[46:07] money that they brought in and this is
[46:09] the and this is the funding that we'll
[46:11] use going forward. So, thank you for
[46:13] bringing that up. Appreciate it.
[46:14] >> Yeah, Mark hates it when I tell him that
[46:16] I'm using all of his fire inspection
[46:18] money to buy my sodas every day.
[46:20] >> Yeah. [laughter]
[46:22] >> Joke joke, right? He's not laughing too
[46:25] much over there, Brandon. [laughter]
[46:27] All right, council. Are there any other
[46:29] comments or questions?
[46:31] >> I I just have a quick comment. Uh,
[46:32] Brandon, thank you and staff, thank you
[46:35] for bringing this forward. We've been
[46:37] talking about this for a long time and a
[46:40] lot of months and I think it just brings
[46:41] a foundational continuity
[46:44] uh to public safety um that I think is very important and one of the one of
[46:49] our main responsibilities as a city uh
[46:52] to provide public safety and uh I think
[46:55] this is a great way of going about that.
[46:57] So thank you.
[46:59] >> Right. Thank you for your comments as
[47:01] well about the responsibility of us as a
[47:03] community providing those very basic
[47:05] services. And so, all right, if there
[47:08] are no other comments from the council
[47:11] or questions, this is not a public
[47:13] hearing, but if there's anybody who
[47:14] would like to speak to this item, you're
[47:16] welcome to come forward and do so.
[47:23] Don't worry, I'm not going to stare
[47:24] anybody down or anything. Okay. No, he's
[47:26] like everybody's just happy where they
[47:29] are. So, all right, bring that back to
[47:31] the council. And like I said before,
[47:33] council, this requires an action by us.
[47:37] And so, uh, I would look for a motion.
[47:40] So, I I would like to make this motion.
[47:42] I would like to make one change. If
[47:43] you'll note when I read this, and it's
[47:46] on the funding portion. Um, so I move to
[47:49] approve the resolution the creation of a
[47:52] new public safety special revenue fund
[47:54] to be included in the fiscal year 2026
[47:57] 2027 tenative budget and state that the
[48:00] ORM city council is considering the
[48:03] dedication of all of the city of ORM's
[48:06] general regular operations property tax
[48:08] levy for fiscal year 2026 2027 to this
[48:12] new fund.
[48:13] >> All right, thank you. I have a question
[48:15] on that. is is intends is the word
[48:17] intends something from the state law. Do
[48:19] we have to use that? I I don't have a
[48:21] problem.
[48:22] >> Yeah. And that's just to clear up this
[48:23] consider I I mean I've had several
[48:25] people say you guys did this already.
[48:27] We're not we're not voting on this till
[48:28] August.
[48:30] >> This is a two-part motion, too.
[48:32] >> Yeah. So, you're you're you're free to
[48:34] say that you intend to do it or you're
[48:36] free to say that you're considering
[48:38] anyway.
[48:38] >> Okay. Thank you. I just wanted to make
[48:40] sure like like um the statements that
[48:43] Brandon had to do earlier that he it was
[48:45] intend and I didn't know if it was going
[48:47] to be used and it had to be used in the
[48:48] same way. So all right council we have
[48:50] that motion. Do you understand what the
[48:52] proposed change is to the motion is
[48:55] considering instead of the word intends
[48:57] >> and also adding the fiscal 2026 2027
[49:01] okay property taxes
[49:03] >> and Brandon you're comfortable with that
[49:05] wording.
[49:05] >> Mhm.
[49:06] >> Okay.
[49:08] >> All right. I have a motion. I will
[49:09] second that.
[49:10] >> We have a motion and a second. All
[49:11] right. Any further discussion? Okay.
[49:14] Council member Kilpac.
[49:15] >> I I
[49:18] >> I
[49:22] >> All right. Thank you. Motion carries.
[49:26] Next item on our agenda is a public
[49:29] hearing regarding an ordinance adopting
[49:32] fiscal year 2026 2027 tenative interim
[49:36] budget. And we'll turn that time back
[49:39] over to Mr. Nelson. And this will be an
[49:42] action item, council.
[49:53] First, we get to see some pretty faces
[49:55] and beautiful mountains.
[50:01] uh just to give you uh just a brief uh
[50:05] touch on the calendar that we've gone
[50:08] through. Um you can January we had our
[50:11] council retreat had several work
[50:13] sessions during the month of April and
[50:14] the special work session even in May um
[50:18] for various reasons and then uh our
[50:21] tenative budget was presented to you on
[50:23] May 12th. uh this public hearing um uh
[50:26] to review the tenative budget on here on
[50:29] June 9th and then a assuming uh we want
[50:32] to move forward with truth and taxation
[50:35] um a a meeting on August 27th has has
[50:38] been reserved with the the county
[50:41] auditor um to uh handle the property tax
[50:45] increase uh proposal.
[50:50] uh some brief budget highlights. Um
[50:53] obvious mentioned before the the
[50:56] increase in the budget of some 35
[50:58] million and we'll go into that why it's
[51:00] 35 million has a lot to do with that
[51:02] public safety fund that we were just
[51:04] discussing and I I've hopefully created
[51:08] some slides to help better understand
[51:10] that as well. Um it funds all of the
[51:13] city's compensation programs as well as
[51:16] um benefits and uh provides uh I
[51:19] mentioned some funds set aside for
[51:21] market adjust targeted market
[51:23] adjustments and then uh funds all of our
[51:26] fleet replacement needs as well as um a
[51:29] large amount of capital project um
[51:32] requirements.
[51:36] Just as a general large picture, high level budget of the review, you can
[51:42] see the the bottom right corner, the
[51:45] change from 177 million to 211 million.
[51:48] Uh you'll notice that second line item
[51:50] to the bottom is related to the public
[51:53] service fund because it is a separate
[51:55] fund and we still want to fund as I
[51:57] mentioned the property tax won't cover
[52:00] and as well as their other revenues
[52:02] won't cover the entire cost of the
[52:04] public safety um it will will require a
[52:08] transfer from the general fund to the
[52:10] public safety fund of appro just a
[52:13] little over $25 million.
[52:16] because of that transfer,
[52:18] you know, out of that what $34 million,
[52:22] 25 million of is related to that one
[52:24] thing alone. Um, you can see on the
[52:28] second to the top line, the the tax
[52:30] increase, the property tax increase that
[52:32] uh we are proposing and has been
[52:34] proposed. Um, just to give you an idea
[52:37] of that. um associated with the public
[52:40] safety fund. It also includes um various
[52:43] transfers related to uh services being
[52:46] provided by uh other internal whether
[52:49] that's our information technology or IT
[52:52] whether it's facilities whether it's um
[52:54] accounting whether it's any of those
[52:58] insurance etc those are accounted for as
[53:00] part of uh that transfers line and so
[53:03] that's why you also see a an increase in
[53:05] that element as
[53:12] Just to give you an idea of, you know,
[53:15] how the funds break down in relation to
[53:18] what you might term new revenues in the
[53:21] first column by each of our larger
[53:24] funds. uh and what are associated with
[53:27] transfers in to those funds as well as
[53:31] uh if we are appropriating any fund
[53:33] balances um and using those fund
[53:36] balances to to fund something within
[53:38] each of those funds.
[53:41] Are there any questions about that? Just
[53:43] kind of gives you an idea that out of
[53:45] that 211 million, you know, a large
[53:48] portion of that is not new revenue,
[53:50] right? It's just moving money between
[53:53] different funds. And so that's an
[53:54] important element to also remember as we
[53:56] go through there.
[54:00] And I hate to say that's an accounting
[54:02] thing, but it is.
[54:06] Um, now moving on to specifically our
[54:08] general fund. Uh, the the general fund.
[54:11] You can see the uh revenues there, and
[54:14] you can see how they're they're
[54:15] relatively stable. And and I should
[54:16] mention, you notice that up at the top,
[54:18] I've removed all the revenues associated
[54:20] with public safety across all of those
[54:22] years. so that we have a compar as
[54:26] comparable as possible at this point uh
[54:28] across those years for the general fund.
[54:31] Um and you can see uh those transfers in
[54:34] which again are primarily related to uh
[54:38] various elements that uh are those
[54:41] people exist within the general fund but
[54:45] they do work for all of the other funds.
[54:48] whether that be the public safety fund,
[54:50] whether that be the water fund, whether
[54:51] that be the sewer fund. And so that's uh
[54:54] an accounting for those charges um for
[54:58] those services.
[55:04] Just to give you an idea of where does
[55:06] the general fund primarily receive its
[55:10] uh revenues from. Um and again I I'll
[55:13] note the notation up at the top just to
[55:16] give you an idea of the change that
[55:18] occurred because of if we of moving the
[55:21] public safety fund into its own fund and
[55:23] the largest being of course the charges
[55:26] for services line um as uh our contract
[55:30] with Lynen and Vineyard as well as um a
[55:34] couple of other items. those charges,
[55:36] fire inspections, those charges um
[55:39] because they're removed, you can see the
[55:41] drop in the percentage of that revenue
[55:43] associated um with the total revenue of
[55:46] the general fund
[55:48] and how that then increases the sales
[55:54] and franchise tax components in relation
[55:58] to the general fund as well.
[56:05] just briefly uh you know the sales tax
[56:08] we've we've had some discussions
[56:09] obviously previously on that nothing has
[56:11] changed my current estimate uh for
[56:14] fiscal 26 is a 3% increase uh for the
[56:18] year and then a proposed that fiscal 27
[56:20] proposed is a 3% increase on top of
[56:24] where I think fiscal 26 will end. Um
[56:28] there's so far been nothing indicating
[56:31] to me that we would be too terribly far
[56:33] off from either of those um particularly
[56:36] in relation to the fiscal year 26 um at
[56:39] 3% estimate.
[56:45] uh just give you an idea of related to
[56:47] some of the other um revenues associated
[56:50] with either the general fund in relation
[56:52] to business licenses or we talked
[56:54] briefly about building permits in that
[56:56] development fees fund. Um and you can
[56:58] see we don't really anticipate much
[57:01] change in either of those revenue
[57:03] sources um going into next year.
[57:10] Um some other general fund items that
[57:12] are uh of importance to that fund. Uh
[57:16] interest earnings will decrease slightly
[57:18] for various reasons. Interest rates
[57:22] despite them maybe being up recently.
[57:24] The earnings that we receive are either
[57:27] the same or lower than what they had
[57:29] been. Um our our justice court just uh
[57:33] stays the same as well as you can see
[57:34] cemetery lot sales. We don't anticipate
[57:37] much change um in in that one as well.
[57:43] Any before we go on to expenditure, are
[57:45] there any questions about any of that
[57:47] revenue stuff that I've been discussing?
[57:49] >> Council, any questions? Council member
[57:51] Mikum.
[57:52] >> Um I do just have a couple of clarifying
[57:54] questions. Uh Ring, can you go back to
[57:57] the um
[58:00] place where you talked about chart? Oh,
[58:02] we can start there. um fiscal year 25
[58:06] versus fiscal year 26. I know that we
[58:08] don't have the final numbers for 26 yet
[58:10] because it's not over,
[58:12] but uh based on our current estimates,
[58:14] you think that we have receive we will
[58:19] receive more by the end of fiscal year
[58:20] 26 in sales tax revenue than we did in
[58:22] 25
[58:23] >> by by a couple of percent
[58:25] >> by 3%
[58:25] >> by about 3%.
[58:27] >> And um we have enough information to
[58:30] make that estimate. Uh
[58:33] I'm at we are at 2.9 right now.
[58:36] >> Okay.
[58:37] >> And that's so we received the May
[58:39] distribution or the May distribution is
[58:42] for sales through March.
[58:45] So I have 9 months worth of data. I'm
[58:49] making my best bet estimate of the
[58:53] remaining three months. and based on how
[58:55] we've been going from month to month
[58:58] that yes, I feel relatively confident
[59:00] that we would be at at near that 3% uh
[59:04] mark.
[59:05] >> Okay. So, I mean it's relatively good
[59:07] news that u that it's it's growing. Can
[59:10] you go back also to the slide where
[59:12] you're talking about how the charge for
[59:13] services has changed? This one this one
[59:16] right here. Uh you briefly described
[59:18] that, but I'm not sure I fully
[59:20] understand why uh that is changing
[59:23] significantly. budget. So the fiscal 26
[59:25] column is what it was with public safety
[59:30] included.
[59:32] So that 8.479
[59:35] million
[59:37] excludes
[59:39] items that would have been included if
[59:42] the public safety fund had been
[59:44] included. It would have been a
[59:45] significantly higher amount
[59:47] approximately 14 millionish
[59:50] um if it had been included. So, so those monies are going to go into the
[59:55] special revenue fund rather than the
[59:57] general fund. And so that's what what
[59:59] you're calculating,
[1:00:00] >> right? Thanks. Yep. You bet.
[1:00:04] >> Want to describe what those are?
[1:00:06] >> Yeah. And I and we will the one right
[1:00:08] after talking about the general fund is
[1:00:10] our public safety fund. So we will
[1:00:12] discuss those in a little more detail.
[1:00:13] >> All right. Any other questions right
[1:00:15] now?
[1:00:16] >> All right. Thank you. All right.
[1:00:18] >> Go on.
[1:00:19] >> Got to do expenditures first, don't we?
[1:00:21] So, just to give you an idea of a
[1:00:22] breakdown in the general is citywide.
[1:00:25] So, citywide, we're going back to the
[1:00:26] top here.
[1:00:28] Where where do citywide where is all of
[1:00:31] the money that $211 million, where is
[1:00:34] that spent? Uh you can see a large
[1:00:37] portion of that is spent in personnel.
[1:00:40] However, you'll notice that the
[1:00:42] percentage of that personnel in relation
[1:00:44] to the total is a little different, but
[1:00:46] you can see uh operations and and later
[1:00:49] on we'll uh break down operations a
[1:00:52] little bit more. And then the c capital
[1:00:54] component, whether they be uh equipment,
[1:00:57] vehicles or projects. Uh a large portion
[1:01:01] of that capital is related to of course
[1:01:03] our utility funds uh and which you will
[1:01:05] see in a little bit as well.
[1:01:11] So just to give an idea of again how do
[1:01:14] expenditures break down by fund. Uh you
[1:01:18] can look in there and see you know where are all those personnel where do
[1:01:23] they reside um how are those operations
[1:01:26] where do who's spending all that
[1:01:28] operational money and where does that
[1:01:31] capital uh come from in relation to
[1:01:33] those individual funds. So this is just
[1:01:35] a global picture to kind of have an idea
[1:01:37] of this the size and where those dollars
[1:01:40] come from.
[1:01:47] As I mentioned uh breaking down that
[1:01:49] operational component uh there was a
[1:01:51] concern last time when we talked about
[1:01:53] the tenative budget um when we were
[1:01:56] looking at this slide and we were
[1:01:57] looking at that general fund $43.6
[1:02:00] million.
[1:02:02] Well, and any of these to be honest with
[1:02:04] you, well, what what makes up those
[1:02:06] operational components? And so I I I
[1:02:09] added this slide here to try to give a
[1:02:12] better picture uh for what those
[1:02:15] operational components are. So, similar
[1:02:18] to what we talked about with revenues,
[1:02:20] that operations column are actual costs,
[1:02:23] things that that actually that fund
[1:02:25] spends on specific things. Um you can re
[1:02:29] see that within that operational um
[1:02:32] expenditure item there was debt of some
[1:02:34] almost $11 million that is part of that
[1:02:37] and then transfers out which we we've
[1:02:40] discussed um and you can see the 37
[1:02:42] million. And so out of that general
[1:02:43] fund, out of that $43 million,
[1:02:46] almost $38 million of that is related to
[1:02:50] transfers out of which 25 million of
[1:02:53] that is related to the public safety
[1:02:55] fund and is is moving to that fund. So
[1:02:59] the general fund just like we talked
[1:03:01] about with the public safety fund also
[1:03:03] pays for various services and different
[1:03:06] uh elements and a large portion of that
[1:03:09] debt service also is a transfer out from
[1:03:12] the general fund for Utopia
[1:03:16] as well as the 2024 sales tax revenue
[1:03:19] bond. So that money is a is transferred
[1:03:21] out of the general fund into the debt
[1:03:24] service fund which is the fund that
[1:03:26] actually pays for that debt.
[1:03:29] But that increases that transfers out,
[1:03:32] right? So, so that's an important thing
[1:03:34] to keep in mind that 54 almost 55
[1:03:37] million in transfers out is a transfer
[1:03:41] of money between funds to cover various
[1:03:44] costs. And so, please keep that in mind
[1:03:47] as you have discussions with
[1:03:49] constituents or you think about that um
[1:03:51] for yourself in relation to that big
[1:03:54] picture 211 million and that big change.
[1:03:57] Um uh and you're welcome obviously to
[1:03:59] contact me. I really again yes that is accounting [clears throat] and I
[1:04:06] um we follow GAP and the way u we're
[1:04:09] required to under accounting standards
[1:04:11] and unfortunately sometimes that can
[1:04:14] lead to a little bit of confusion as to
[1:04:16] how those um have to transpire in
[1:04:19] government fund accounting. Um so please
[1:04:22] keep that in mind.
[1:04:29] Um, I just touched briefly on some of
[1:04:32] the general fund additions. We're we're
[1:04:33] adding in an attorney into the
[1:04:35] attorney's office. Um, as well as an
[1:04:38] urban a technician in the urban forestry
[1:04:40] division. Um, and then within
[1:04:42] operations, uh, we mentioned Podium,
[1:04:45] which is a software that we use that had
[1:04:47] been uh, being funded with ARPA funds
[1:04:49] and those funds are no longer available.
[1:04:51] So, we like Podium and want to continue
[1:04:53] using it. So, we had needed to add move
[1:04:56] those dollars and uh find a way to pay
[1:04:58] for those. Um, as well as uh increasing
[1:05:01] uh our youth council dollars so that uh
[1:05:03] our youth that you you saw I believe
[1:05:05] here uh in the council meeting or two
[1:05:08] ago uh can continue to uh learn and
[1:05:11] enjoy the uh being part of the
[1:05:13] government uh arena.
[1:05:16] Uh we we touched on at the very
[1:05:18] beginning uh cost of fleet replacements.
[1:05:21] Um you can see the comparison for this
[1:05:23] year as opposed to the prior year. Um
[1:05:26] and then in down at the bottom uh our
[1:05:29] general and public safety uh fund
[1:05:31] breakdown as opposed to our various
[1:05:33] utility and road funds um and the
[1:05:36] vehicles associated with that and and we
[1:05:38] had a a work session where we discussed
[1:05:41] a little more of the details of what
[1:05:42] those vehicles are. But this does
[1:05:45] hopefully give you some idea as to where
[1:05:47] those dollars are uh being spent within
[1:05:49] a general category.
[1:05:55] Okay, now we get to the public safety
[1:05:57] fund that I mentioned. Um so you can see
[1:05:59] a breakdown here um what was being
[1:06:01] proposed as far as uh where those
[1:06:04] revenues for the public safety uh that
[1:06:06] new public safety fund would be coming
[1:06:08] from. You can see the property tax that
[1:06:09] would be the dedicated property tax item
[1:06:12] as well as the proposed increase. Um
[1:06:16] there are grants that we receive. We
[1:06:18] budget, we don't generally budget for
[1:06:20] grants. Um but there are two grants for
[1:06:22] public safety. Um one within the ta the
[1:06:25] um task force um for Haida grant that's
[1:06:28] from the federal government that is
[1:06:30] budgeted because we have received it
[1:06:33] every year since like every year I've
[1:06:35] been here. And and then there's also
[1:06:38] what's called a liquor allotment which
[1:06:40] is also something from the is from the
[1:06:42] state and and we receive something from
[1:06:44] that aotment every year as well. So we
[1:06:47] feel pretty confident in receiving
[1:06:48] those. So therefore we go ahead and and
[1:06:50] budget those. Uh council member Millet
[1:06:54] mentioned charges for services and the
[1:06:56] breakdown. Uh I wanted to that 6.2
[1:06:58] million. So you can uh see down across
[1:07:01] the bottom um identifying kind of the
[1:07:04] majority those those four items make up
[1:07:07] probably 90% of that $6.2 million.
[1:07:12] Um and and there are some other smaller
[1:07:15] uh elements within that but those are
[1:07:17] the the big hitters within that category
[1:07:19] of revenue. uh and especially once you
[1:07:22] pull out ambulance uh you can see that
[1:07:25] the size of uh ambulance revenues that
[1:07:27] we receive from those services. Uh
[1:07:29] within the fees and fines uh the largest
[1:07:32] element in there is fire inspection
[1:07:33] fees. So the the about 470ish million of
[1:07:38] that 533 is related to fire inspection
[1:07:41] fees. And then again, the the transfers
[1:07:44] in out the bottom that coming from the
[1:07:46] general fund to fund the remaining
[1:07:49] amount needed to fund the special
[1:07:51] revenue, the public safety special
[1:07:53] revenue fund. [gasps]
[1:07:54] There any questions about that?
[1:07:59] Fantastic.
[1:08:06] talking about property taxes. Just a
[1:08:09] simple chart to kind of give you an idea
[1:08:11] of uh what our property tax that the far
[1:08:14] right one obviously include includes the
[1:08:18] proposed property tax increase. Um and
[1:08:21] um there is an est there's some big
[1:08:24] estimates that go on here. So if when we
[1:08:26] receive the actual um certified tax rate
[1:08:29] an associated budgetary revenue that may
[1:08:32] require an adjustment uh and we have
[1:08:36] within our budget uh the uh a
[1:08:39] contingency. So if I need to adjust that
[1:08:42] property tax amount then we would
[1:08:44] replace that uh up or down in relation
[1:08:47] to that contingency account.
[1:08:53] » You bet.
[1:08:54] >> Okay. So would you just once again I
[1:08:56] keep I get all these questions so I just
[1:08:58] would like to have you clarify it at
[1:09:00] this time. So our certified tax rate we
[1:09:02] don't know what that is yet.
[1:09:03] >> Correct.
[1:09:04] >> We have the one from before last year.
[1:09:06] >> We anticipate that it will be lower.
[1:09:08] >> Yes.
[1:09:08] >> And so we are um transparently saying
[1:09:12] >> um it's going we're it we're going to be
[1:09:14] higher than it was last year.
[1:09:17] >> Correct. So whatever that certified tax
[1:09:20] the certified tax rate the reason we
[1:09:22] think it will go down is because we
[1:09:23] think property values generally will
[1:09:25] either be the same or probably increase.
[1:09:28] So therefore when property taxes
[1:09:30] property values increase the rate goes
[1:09:34] down.
[1:09:35] When the rate goes down, we don't know
[1:09:37] exactly what that is yet, but we will be
[1:09:39] setting a rate higher than that rate
[1:09:43] only to produce $450,000.
[1:09:48] So, whatever it t whatever that rate
[1:09:50] needs to adjust to to create $450,000
[1:09:55] is what that rate that we would come to
[1:09:58] you to set. And the reason there's that
[1:10:00] inverse relationship is because of the
[1:10:03] way the state of Utah
[1:10:06] um does our I don't know how to say it
[1:10:08] budgets I mean does
[1:10:10] >> we are different than every other state.
[1:10:12] So if just as a very simple example if
[1:10:14] the city were to receive let's use
[1:10:16] fiscal year 26 estimate if we were to
[1:10:19] budgeted to receive $7.8 million in that
[1:10:23] year fiscal 27 we get $7.8 8 million.
[1:10:29] That does not account for new growth. So
[1:10:32] if there are any new, you know, across
[1:10:35] the street here, we tore down a Burger
[1:10:37] King and building a raising canes.
[1:10:38] That's got to be worth a heck of a lot
[1:10:40] more than Burger King. No,
[1:10:44] » eat more chicken. No,
[1:10:46] >> Home Depot is probably a better better
[1:10:48] point, right? when Home Depot is up and
[1:10:50] operational, the the property tax value
[1:10:52] of that property will increase um
[1:10:55] dramatic quite a bit. You know, that
[1:10:57] would not be accounted for as part of
[1:10:59] that 7.8 million. We would receive that
[1:11:02] additional property tax on top of that.
[1:11:05] now would become the new base. So,
[1:11:08] let's just say it was 200,000. So, now
[1:11:10] our new base would be $8 million going
[1:11:12] forward. I'm very very simplifying it.
[1:11:15] is it is a very complicated thing
[1:11:18] that the county and state tax commission
[1:11:20] go through.
[1:11:20] >> That's just to give us stability in our
[1:11:22] budgeting.
[1:11:22] >> Correct. So that whether values go up or
[1:11:26] values go down doesn't matter per se to
[1:11:29] us. I mean it may be a a reflection on
[1:11:32] the economy of course but it does not
[1:11:35] necessarily impact the city and our
[1:11:38] ability to provide those core services.
[1:11:41] That's what their logic behind that was.
[1:11:44] >> All right. Thank you, Council Member
[1:11:45] Mikum.
[1:11:46] >> Uh, while we're on this slide, I I just
[1:11:48] want again to think about the the big
[1:11:51] picture here. So, we're proposing a $211
[1:11:55] million [clears throat] budget. Uh,
[1:11:57] about 25 million of that is fake in the
[1:12:01] sense it's it's it's an accounting move
[1:12:02] because we're creating a special revenue
[1:12:04] fund.
[1:12:05] >> Correct.
[1:12:05] >> So, in terms of actual expenditures that
[1:12:08] we would anticipate coming out of that
[1:12:09] budget, we're talking about 180
[1:12:10] something million. Right.
[1:12:12] >> It's even lower. Great. cuz there that's
[1:12:14] not the only fund that has those kind of
[1:12:16] transfers in and out, right? There was
[1:12:18] 50 54 million
[1:12:20] >> uh of transfers in and out. So it's
[1:12:24] really
[1:12:24] >> including the 25.
[1:12:27] >> Yeah. Which includes the 25. Yes.
[1:12:28] >> Okay. So 160 something
[1:12:33] u million is the big picture budget. And
[1:12:36] of that money,
[1:12:39] uh, we anticipate 8.5 million coming in
[1:12:42] from property tax.
[1:12:44] >> Correct.
[1:12:44] >> Which means this is just a tiny sliver
[1:12:48] of our overall revenues. Uh, we're
[1:12:50] talking about, you know, five or 6% here
[1:12:53] of our overall revenues coming in from
[1:12:55] this, right? Depending on how you
[1:12:57] calculate those transfers.
[1:12:59] >> Yep. You are 100% correct.
[1:13:01] >> Okay. So this I I I I just think that
[1:13:04] not everyone understands that u how
[1:13:07] small um a portion of our overall
[1:13:11] revenues come from our property tax.
[1:13:13] >> Yeah, I agree.
[1:13:13] >> And then I'm going to take the flip of
[1:13:16] that a little bit. Not not to be Eeyore
[1:13:19] or anything, but it is a very small
[1:13:22] percentage, but it's a very steady
[1:13:25] stable percentage. And what that shows
[1:13:28] is how much right now we're dependent on
[1:13:31] a more a less stable funding source for
[1:13:34] a lot of our expenditures and that's
[1:13:37] sales tax because it we're we're at the
[1:13:40] mercy of a million different factors
[1:13:41] with the economy and and people's lives
[1:13:43] and things like that. So yes, I do think
[1:13:46] it's very important to show that
[1:13:47] property tax is a small portion
[1:13:51] of that, but just also we need to be
[1:13:54] mindful of how much our our budget is uh
[1:13:58] consists of a less stable funding source
[1:14:00] as well.
[1:14:01] >> Yes, I agree. And and you know, not that
[1:14:04] we have to go crazy, right? The reason
[1:14:06] property tax has been as low as it has
[1:14:09] been and why we haven't done necessarily
[1:14:12] many property taxes is because we had uh
[1:14:15] prior council members who understood
[1:14:17] sales taxes and
[1:14:20] built the the city around an
[1:14:24] understanding of what sales taxes could
[1:14:26] do particularly the you know the parkway
[1:14:28] area right um so so there's a benefit to
[1:14:32] be gained
[1:14:33] >> by that
[1:14:35] exactly the intent all along from all
[1:14:37] the prior councils and us too to keep
[1:14:39] our property taxes low.
[1:14:40] >> Yes.
[1:14:41] >> And I think that's reflective here.
[1:14:43] >> And and the only thing that we're trying
[1:14:45] to say now is property taxes I mean
[1:14:49] sales taxes have kind of look like they
[1:14:52] maybe hit a certain plateau right where
[1:14:55] we can't necessarily count on huge gains
[1:15:00] within the sales tax category. So, if
[1:15:02] you're not gaining enough to keep up
[1:15:05] with inflation
[1:15:07] and cost increases,
[1:15:09] what do we what what other mechanism do
[1:15:12] we have to be able to keep up with that?
[1:15:14] And that and that's a part of what uh
[1:15:16] we're trying to make sure that we
[1:15:18] understand when we had the general fund
[1:15:21] sustainability study that we talked
[1:15:23] about. That's part of why we did that
[1:15:25] study is to be able to make sure that we
[1:15:28] all have a a good understanding of where
[1:15:31] we're headed and and what those
[1:15:33] possibilities look like.
[1:15:35] >> I appreciate that study and showing us
[1:15:37] what what the different possibilities
[1:15:39] could be. Thank you, Council Member
[1:15:41] Mikum and Council Member Miller. Any
[1:15:43] other questions thus far? All right,
[1:15:46] carry on. So, just wanted to put this
[1:15:48] back up there since we're talking about
[1:15:49] the public safety fund um and talking
[1:15:52] about that property tax increase and
[1:15:54] just a slide to be able, you know, have
[1:15:56] in that slide deck in relation uh to
[1:15:58] what the proposal for that property tax
[1:16:00] increase uh was to fund is to fund. Uh
[1:16:04] and then just give you a breakdown uh of
[1:16:06] that 45 million for the public safety
[1:16:08] fund in between police and fire and how
[1:16:11] those break down between uh personnel,
[1:16:13] operations, and capital. Uh just to give
[1:16:15] you again kind of an idea of the the
[1:16:18] size and magnitude of each of those.
[1:16:23] um briefly touched on this in our
[1:16:26] tenative budget presentation, but again
[1:16:28] just kind of identing the property tax
[1:16:30] increase there for the personnel and
[1:16:32] then down in the operations uh various
[1:16:34] items that have been requested uh to be
[1:16:37] able to fund those various items um as
[1:16:40] we we move forward um with those with
[1:16:43] expansions either because the they've
[1:16:46] been covering it with what they have and
[1:16:48] the time has come they no longer they're
[1:16:52] not doing something else that they
[1:16:54] probably would like to do or should do
[1:16:58] because of these particular items
[1:17:00] because they're using those funds to
[1:17:02] fund these things. Um, and the time has
[1:17:05] just come to be able to not have to
[1:17:07] scrape together from this account and
[1:17:08] that account to be able to fund those.
[1:17:11] So, we're dedicating those funds to be
[1:17:13] able to make sure that they can do that
[1:17:16] uh without having to scrape away from
[1:17:18] other needs and that they have um to be
[1:17:21] able to accomplish the things that
[1:17:23] they're they should be doing.
[1:17:25] >> And would you just cuz I get this all
[1:17:26] the time. What is EMPG? What is FFN? We
[1:17:31] >> uh EMPG is a grant, a federal grant for
[1:17:33] emergency preparedness. Uh that grant
[1:17:36] has been shrinking and shrinking and
[1:17:38] shrinking. Um, but we would like uh our
[1:17:41] emergency manager to still be able to
[1:17:43] get the things he needs to make sure we
[1:17:45] are prepared. So, the city is now in
[1:17:48] essence committing for that shrinkage of
[1:17:51] the grant amount to cover that
[1:17:53] shrinkage. Um, Newvos is the animal
[1:17:56] shelter. Um, and so, uh, our costs for
[1:18:00] taking care of animal control within the
[1:18:03] city has increased over time. Um and
[1:18:06] again they've just been finding ways to
[1:18:08] fund that and so uh finally dedicating
[1:18:11] those dollars to that increased amount
[1:18:14] that uh they've been charging that they
[1:18:16] charge the city. Um I think was there
[1:18:19] >> the third one FFN
[1:18:21] is uh fixtures furniture fixtures and
[1:18:24] equipment. So within our fire stations,
[1:18:27] uh beds, uh refrigerators, microwaves,
[1:18:32] ovens, things of that of that nature, uh
[1:18:35] in the past, they've just found a way to
[1:18:38] again replace those instead of being
[1:18:40] able to maybe number one take advantage
[1:18:42] of replacing maybe all of them at the
[1:18:46] same time and getting discounts in
[1:18:47] relation to doing that. but dedicated
[1:18:50] dollars for that purpose to replace
[1:18:53] those things that wear out within a fire
[1:18:56] station on a regular basis instead of
[1:18:58] onesie twoosying it because that's all
[1:19:01] we can afford to do.
[1:19:02] >> Well, you don't think about that. I
[1:19:03] mean, their water heater goes out too,
[1:19:05] right? Just like in my house.
[1:19:06] >> Correct. So,
[1:19:07] >> correct.
[1:19:08] >> Which kind of is what happened to kind
[1:19:10] of prompt this to be honest with you.
[1:19:12] So,
[1:19:17] » okay. just and then we'll run through
[1:19:19] these hopefully relatively quick. Uh we touched on what are our streets the
[1:19:24] dollars that we receive um and where
[1:19:26] those are going um between our uh the
[1:19:30] two taxes that we receive an excise tax
[1:19:33] being the BNC road fund as well as a
[1:19:36] public transit and highway tax over on
[1:19:38] the transportation sales tax side and
[1:19:41] where those dollars are being um spent
[1:19:44] within those those particular uh
[1:19:46] projects. uh our main funds, sorry,
[1:19:53] our debt service fund just to give you
[1:19:55] an idea of what kind of debt we do have
[1:19:57] um and the dollars associated with that.
[1:20:00] So you can see um really the we have two uh outstanding bonds that the debt
[1:20:05] service pays uh fund pays for which is
[1:20:07] our 2019 go bonds which paid for the
[1:20:10] fitness center and the library hall. And
[1:20:14] then um uh we have a 2024 sales tax
[1:20:18] revenue bonds which are paying for the
[1:20:20] fac uh fire training facility as well as
[1:20:23] the remodel over at the public safety
[1:20:25] building, the police department. And
[1:20:27] then of course our continuing um payment
[1:20:30] uh to cover the Utopia uh debt. We also
[1:20:33] do have a a lease that was an energy
[1:20:35] improvement uh lease um to the biggest
[1:20:40] item of that was replacing all of the
[1:20:42] bulbs on the street lights of the city
[1:20:44] from incandescent bulbs to LED bulbs and so we continue to uh pay on that
[1:20:51] lease finance. It's a lease financing
[1:20:53] arrangement. So any questions about the
[1:20:56] debt service component?
[1:21:02] They are uh internal service funds. Just
[1:21:04] again to give you an idea of what kinds
[1:21:06] of things do we do uh internally that
[1:21:09] they do for ourselves uh to support uh
[1:21:14] operations within the city and and these
[1:21:15] are [clears throat] the five funds that
[1:21:16] we operate uh that provide those
[1:21:19] services uh to the city as a whole.
[1:21:23] Um some of the additions that we added
[1:21:29] here some uh IT elements in relation to
[1:21:33] some uh project engineers, a database
[1:21:36] administrator and some security as
[1:21:39] obviously the state has continued to
[1:21:41] identify need things that we're required
[1:21:44] to make sure we take care of in the
[1:21:46] cyber security realm primarily but um
[1:21:49] any type of security that we may stand a
[1:21:51] need of this person can help our staff
[1:21:53] uh be able to identify and work upon
[1:21:55] those as well.
[1:21:59] And then various operational components.
[1:22:01] Some of these um are related to just
[1:22:04] cost increases. Um you know the Google
[1:22:07] obviously continues to uh cost more. Um
[1:22:11] and then there are some changes that
[1:22:13] have to occur between us being not on an
[1:22:15] say on an enterprise fund an enterprise
[1:22:19] product. um versus a government product.
[1:22:24] Um and so there's some changes that need
[1:22:26] to occur there with our licensing um in
[1:22:29] relation to that. And then um some
[1:22:32] software
[1:22:33] various software needs um as well as
[1:22:36] some service in the uh air conditioning
[1:22:39] uh components for our our backup systems
[1:22:42] and things like that. So so um various
[1:22:45] items related to their operations.
[1:22:49] And just to I I moved this to the top
[1:22:51] because I'm not going to touch on we
[1:22:53] already did that in the tenative budget
[1:22:55] for each of the utility funds, but just
[1:22:57] as a reminder uh where we uh sit or what
[1:23:01] where we think we sit in relation to all
[1:23:03] of these other entities in relation to
[1:23:05] our total utility cost. Um and that in
[1:23:08] that again as a reminder that includes
[1:23:11] our assumption of our increases that are
[1:23:14] part of the budget as opposed to where
[1:23:16] all of those entities sit currently. Um
[1:23:19] and and sometime and many of those I
[1:23:21] think it says at the bottom uh yeah
[1:23:24] table assumes so we assumed a historical
[1:23:26] average increase. So so I take that
[1:23:29] slightly back. Those are taking what
[1:23:32] they currently are and making a
[1:23:34] projection of where we think that they
[1:23:36] would end up. based on that 4.9%
[1:23:39] utility increase.
[1:23:44] Um, briefly run through the water fund.
[1:23:47] Um, we we had a uh change to both the
[1:23:51] base rate for all of the meters, but you
[1:23:54] can see we've listed for the 3/4 meter
[1:23:56] um as well as tier one um usage rates.
[1:23:59] All the tiers will be changing, but uh
[1:24:01] they all change approximately that same
[1:24:03] percentage. Um and then uh there's some
[1:24:07] changes over on the lefth hand side in
[1:24:09] relation to the the fee that we was
[1:24:11] started last year in relation to
[1:24:13] Jordanell and Deer Creek um work and
[1:24:18] then down at the bottom left uh a new
[1:24:20] state regulatory fee that will be added
[1:24:23] to uh the bill to pay for um regul that
[1:24:27] regulations that the state has placed
[1:24:29] upon us.
[1:24:32] water reclamation,
[1:24:34] um sewer, otherwise known as sewer.
[1:24:36] Again, proposed base rate increases and
[1:24:39] volume charge increases. Um you're all
[1:24:41] well aware of all of the things that'll
[1:24:43] be going on down at the treatment plant
[1:24:45] and the improvements that need to happen
[1:24:46] there. Um and so again this while not as
[1:24:51] large as the prior two years in relation
[1:24:53] to that increase still pretty large
[1:24:55] increase as we and that should be um
[1:24:58] continuing to as we bond for try to go
[1:25:02] out for bonding in relation to making
[1:25:04] those uh improvements happen. Um, we
[1:25:07] have uh some uh cash that we're able
[1:25:10] then to get those projects started and
[1:25:13] then be able to use bond money to keep
[1:25:16] the keep the ball rolling, if you will.
[1:25:20] Uh, storm water. Um, again, you're all
[1:25:24] well aware of the canal abandonments
[1:25:26] that have been happening throughout the
[1:25:28] city. Um, and the uh increase there is
[1:25:31] to help us try to figure out ways to be
[1:25:33] able to uh
[1:25:36] do improvements to collect that storm
[1:25:39] water now that those canals are are no
[1:25:41] longer an option for us. And so uh you
[1:25:45] see a rate increase in relation to the
[1:25:47] storm water system as well.
[1:25:52] Um recreation uh I think I mentioned
[1:25:56] that the rate hadn't been incre Yeah.
[1:25:58] right there in increase had no increases
[1:26:00] to the annual there are no increases to
[1:26:02] the annual membership the daily uh
[1:26:05] admission it will increase for the first
[1:26:06] time in three years. Um and just as a
[1:26:10] side note our indoor classes those
[1:26:12] continue to climb as people continue to
[1:26:15] use the fitness center to to do those
[1:26:17] classes.
[1:26:20] uh our solid waste fund garbage. Um
[1:26:23] we've renegotiated our contract with
[1:26:26] waste management um and uh so uh we've
[1:26:30] been putting off uh trying to have any
[1:26:33] increases to citizens um and until now.
[1:26:36] So and now we have a there will be an
[1:26:39] increase in relation to uh those uh
[1:26:42] solid waste charges um which you can see
[1:26:45] the effect of that in the proposed uh
[1:26:48] revenue increase because that's totally
[1:26:51] based on uh what our expenditures are uh
[1:26:55] going to be what we expect them to be.
[1:26:58] So it's purely a pass through
[1:27:02] and you can see that in relation to the
[1:27:04] solid waste uh rate uh history here
[1:27:13] and are there any questions after all of
[1:27:16] that?
[1:27:17] >> Thank you. Any questions? Council,
[1:27:19] anything that you have that Okay,
[1:27:22] council member Mikum.
[1:27:24] >> Sorry I keep coming back to you. No
[1:27:26] worries. It's just this is my first
[1:27:28] budget rodeo and I'm excited to learn as
[1:27:30] much as I can.
[1:27:31] >> Sometimes I feel like it's my first one,
[1:27:32] too.
[1:27:33] >> Don't say that.
[1:27:36] >> Um,
[1:27:39] but transportation utility fund, we've heard about that. Uh, I'm not
[1:27:42] seeing that in your presentation.
[1:27:44] not included in our budget, our tenative
[1:27:46] budget uh at the time when all of those
[1:27:49] requirements around setting up that um
[1:27:52] are in place and we would be coming
[1:27:55] forward to you with a budget amendment.
[1:27:58] um whatever time of year that happens to
[1:28:00] fall in uh to see whe about adding that
[1:28:03] as part of uh our budgeting and and that
[1:28:07] potentially would also then not even
[1:28:08] potentially it would have another I mean
[1:28:12] another fund uh tied to that those
[1:28:15] dollars as well. So that will occur when
[1:28:18] that is ready to be brought forward. So,
[1:28:19] we're not we're not trying to get that
[1:28:21] through before the fiscal year. And uh
[1:28:25] the any funds that come through if that
[1:28:27] is approved would would be directed
[1:28:29] primarily to transportation
[1:28:31] improvements, right?
[1:28:34] Uh and given that the fiscal year starts
[1:28:37] July 1st and that the timeline that you
[1:28:41] uh showed to us says that we're still
[1:28:43] going to be voting on budget items the
[1:28:45] end of August. Um are you asking us to
[1:28:49] approve an interim budget
[1:28:52] um that covers that period of time
[1:28:55] before we make final budgetary
[1:28:57] decisions? What how how do July and
[1:28:59] August work?
[1:29:00] >> Yeah. So thank you for bringing that up.
[1:29:02] So, the ordinance that you have before
[1:29:03] you is basically approving um the budget
[1:29:08] outside of those items we mentioned with
[1:29:11] a property tax increase, a dedicated um
[1:29:14] the dedication of the property tax. Um
[1:29:17] as and so that budget, that tenative
[1:29:21] budget
[1:29:22] in the language is what the state then
[1:29:25] refers to as an interim budget. And we
[1:29:28] would then operate under that interim
[1:29:30] budget from July 1st until August 27th
[1:29:33] when on that TNT meeting in August you
[1:29:37] would approve a final adopted budget at
[1:29:40] that point.
[1:29:45] It is kind of like being in we're kind
[1:29:48] of dating you know and you know
[1:29:51] >> we kind of think this is the budget we
[1:29:52] want. We're getting we're getting a
[1:29:54] little more serious. But you know what?
[1:29:56] You going to pop the question on August
[1:29:58] 27th and see if it becomes
[1:30:01] >> That's good analogy. Yeah. Never thought
[1:30:04] of it that way, but it is good.
[1:30:06] >> Got a little levity, man. [laughter]
[1:30:09] >> You Brandon, you do an outstanding job.
[1:30:11] You and your team, Trevor. Well done.
[1:30:14] And so, yes, council. Any other
[1:30:16] questions, comments on the budget before
[1:30:18] I open a public hearing?
[1:30:22] All right. Well, I gonna second what you
[1:30:24] say. I know we've been talking about
[1:30:25] this for weeks and weeks and weeks and
[1:30:26] it takes you weeks and weeks and weeks
[1:30:28] and basically the whole year to get
[1:30:29] ready for this. So, just I really
[1:30:30] appreciate it and I know our residents
[1:30:31] appreciate it as well. So, to you and
[1:30:33] your team, thank you.
[1:30:34] >> Thank you,
[1:30:34] >> Liz. Thank you.
[1:30:36] >> All right.
[1:30:36] >> I I do have one more comment. Sorry.
[1:30:39] >> U
[1:30:40] Thanks. Thanks for uh walking us through
[1:30:43] this and and providing the detail and thought that you you've done. Uh, I
[1:30:48] know all all of us up here really want
[1:30:51] to be fiscally conservative in the way
[1:30:53] that we approach this and I I feel like
[1:30:58] uh you and other members of our staff
[1:31:00] are doing your very best to to uh try to
[1:31:04] make sure that every dollar spent is uh
[1:31:06] spent very wisely. Uh we appreciate
[1:31:08] that. That's something that I care a lot
[1:31:10] about and I I know that my colleagues
[1:31:13] care care a lot about. uh even though
[1:31:16] the proposed property tax increase is is
[1:31:19] very small, right? And we're going to
[1:31:22] see really direct tangible benefits in
[1:31:25] terms of of support from two additional
[1:31:27] police officers, which we need.
[1:31:30] um that you know that small increase
[1:31:34] combined with some of the additional
[1:31:36] rate increases that people might might
[1:31:38] see in terms of storm water in terms of
[1:31:42] um
[1:31:42] >> water and sewer
[1:31:43] >> uh sew you know sewer and solid waste
[1:31:46] charges as well. U I I I think you know
[1:31:51] many of our residents might not
[1:31:53] necessarily
[1:31:54] feel a pinch from that but there might
[1:31:56] be some that do.
[1:31:57] >> Sure. Um and
[1:32:00] um so I just I just want us to be
[1:32:01] sensitive to the the fact that
[1:32:04] particularly for those that are are
[1:32:06] barely surviving,
[1:32:08] right? That um some of those fee
[1:32:11] increases um may not feel completely
[1:32:14] negligible
[1:32:16] um and may be u
[1:32:20] you know they they might feel it. And so
[1:32:23] I I know that tonight's not the night
[1:32:25] for this conversation, but uh I would
[1:32:28] like us to have a conversation at some
[1:32:29] point about uh how how do we help ensure
[1:32:34] that those that really are living on u
[1:32:38] low fixed incomes uh who might notice
[1:32:41] and feel those differences
[1:32:44] um how do we ensure that they have
[1:32:46] opportunities
[1:32:48] um to demonstrate you know need
[1:32:52] um anytime that there is a fee or a tax
[1:32:55] increase uh in a way that uh we have
[1:32:58] their back and we can support them as
[1:33:00] well. So, uh again, I think that you've
[1:33:03] done a really great job in terms of
[1:33:06] making sure that this is a conservative
[1:33:07] budget. Um that it's a responsible
[1:33:10] budget. Uh we are living in a world of
[1:33:12] inflation.
[1:33:14] uh and we need to be able to keep our
[1:33:17] staff and we need to be able to uh pay
[1:33:20] the the things we need to pay for. Um,
[1:33:23] but I I I just hope that we will
[1:33:26] continue to have a a conversation uh
[1:33:28] between the staff and the city council
[1:33:30] about how do we ensure that those who um
[1:33:34] do feel pinched occasionally by this uh
[1:33:37] have recourse and opportunities uh to to
[1:33:42] um demonstrate that they may need some
[1:33:44] additional support.
[1:33:45] >> Yeah, we we welcome those conversations.
[1:33:47] We we welcomed them in the past and we
[1:33:49] certainly welcome them going forward.
[1:33:52] I echo I echo that as well that I have
[1:33:54] that concern and so I look forward to
[1:33:56] that council member Millet.
[1:33:57] >> So I and maybe just in just way to help
[1:34:02] is you know use our our community um our
[1:34:07] civic engagement director to put out
[1:34:10] some of those programs on our social
[1:34:13] media that are available. You know talk
[1:34:15] about it at our senior center. We do
[1:34:18] there are some things the county offers
[1:34:20] um to assist with some of these
[1:34:23] increases. So I don't think it hurts to
[1:34:26] put that information out there again and
[1:34:28] for those most vulnerable to help them
[1:34:32] >> for sure.
[1:34:32] >> And yeah, and I appreciate um Council
[1:34:35] Member Mikum saying that we're all very
[1:34:38] cognizant of that
[1:34:40] um situation and we hear about it from
[1:34:44] the residents. So
[1:34:46] >> All right.
[1:34:47] We we are genuinely happy to communicate
[1:34:51] and educate on those programs and we we
[1:34:53] do set aside funds for that uh for those
[1:34:56] efforts every year and and it's part of
[1:34:58] our sort of communications calendar to
[1:35:01] get that information out. So, but yes,
[1:35:03] we'll we'll follow up on it and make
[1:35:04] sure we do so.
[1:35:06] >> All right. Thank you. Right. If there
[1:35:08] are no other comments from the council,
[1:35:10] it's public hearing. We're going to open
[1:35:11] the public hearing. Um if there's anyone
[1:35:13] here to speak to uh the ordinance
[1:35:17] adopting fiscal year 2026 20227 tenative
[1:35:21] interim budget you're welcome to come up
[1:35:23] and and share your thoughts.
[1:35:31] Seeing nobody who who will be coming up
[1:35:34] go ahead and close that public hearing
[1:35:35] and bring it back to the council.
[1:35:38] It does require this item does
[1:35:41] require an action by us and it has a
[1:35:45] rather uh if if you
[1:35:47] >> pretty lengthy.
[1:35:47] >> It's a long motion if you choose to make
[1:35:50] a mo. Well, it says to approve or deny.
[1:35:52] So, you know, is that all one sent? It
[1:35:55] is all one sentence.
[1:35:57] >> Wow. Breath in between.
[1:35:58] >> You are an overachiever, Mr. Nelson.
[1:36:01] >> Well, I got Steve involved, so that's
[1:36:03] why.
[1:36:03] >> Oh, okay.
[1:36:04] >> This looks like a Steve sentence to me.
[1:36:06] >> Okay. I'm sorry. I I give you credit. It
[1:36:08] should the credit should go to Mr. Earl.
[1:36:10] Okay.
[1:36:12] >> Joint effort. And it was.
[1:36:14] >> Mayor, I'll make a motion.
[1:36:16] >> All right. Council member Lamson.
[1:36:18] >> I move to approve and adopt the fiscal
[1:36:20] year 2026 2027 tenative budget as shown
[1:36:24] in exhibit A, which will serve as the
[1:36:25] city's interim budget beginning July
[1:36:27] 1st, 2026.
[1:36:30] And ending after the date, the city
[1:36:32] council adopts a final budget. Adopt all
[1:36:34] fees and charges shown in exhibit B.
[1:36:37] Adopt the compensation programs as shown
[1:36:40] in exhibit C. Adopt the franchise tax,
[1:36:43] municipal energy sales and use tax,
[1:36:46] telecommunications license tax,
[1:36:48] transient room tax, E911 fee rate, and
[1:36:51] adopt a proposed tax rate above the
[1:36:54] certified tax rate with a truth and
[1:36:56] taxation public hearing to be held on
[1:36:58] Thursday, August 27th, 2026 at 6 p.m. at
[1:37:03] which time a final budget will be
[1:37:05] adopted.
[1:37:07] >> All right, have a motion.
[1:37:08] >> I second that.
[1:37:09] >> Second. The only way you could have
[1:37:11] improved that motion is if you did it in
[1:37:12] one breath.
[1:37:13] >> I thought about it and then
[1:37:15] [clears throat] I thought better about
[1:37:16] it.
[1:37:17] >> Okay. [laughter]
[1:37:18] >> All right, council. We have a motion in
[1:37:19] a second to approve u an ordinance
[1:37:22] adopting our fiscal 2627 tenative
[1:37:25] interim budget. Is there any more
[1:37:26] discussion?
[1:37:28] Right. I'm going to go ahead and vote I.
[1:37:29] Council member Mikum.
[1:37:31] >> I Right. Motion carries unanimously.
[1:37:38] Thank you. Thank you for all your your
[1:37:40] work, all of you, on this. This was a
[1:37:42] No, it's only a few more months until we
[1:37:44] start the process over again.
[1:37:46] >> I'm so discouraging tonight. I'm sorry.
[1:37:49] I don't mean to be. [laughter]
[1:37:52] All right. Our next item is uh just
[1:37:55] council, if you would like to refer to
[1:37:56] your packet to see the uh monthly
[1:37:59] financial statement for April 2026. And
[1:38:02] then we have item number six, our city
[1:38:04] manager information items. to turn the
[1:38:06] time over to our city manager, Bren By.
[1:38:10] >> I just want to echo uh my my gratitude
[1:38:14] um and and the alignment of us as as
[1:38:17] staff with um uh your direction and
[1:38:20] leadership in in um caring about every
[1:38:26] dollar in in our budget. Thank you so
[1:38:28] much for your trust, support, confidence
[1:38:31] in us. I am very very confident in our
[1:38:34] employees to be fully humble, hungry and
[1:38:38] smart to uh that that they do each have
[1:38:42] the the continuous improvement mindset
[1:38:45] that they do sacrifice that they truly
[1:38:48] want to do good beyond themselves. Um, I [clears throat] am super grateful for
[1:38:54] the the team we have and and I I know
[1:38:56] that they will continue to uh provide
[1:39:00] the top highest uh uh standards of of
[1:39:04] quality service and do it at the best
[1:39:07] possible price to our residents. Uh so I
[1:39:11] just want you to know that I am
[1:39:13] completely confident in in our staff to
[1:39:17] execute on the budget that you have. so uh well generously positively
[1:39:24] um supported and and and the we do not
[1:39:28] take for granted the trust you put in us
[1:39:31] uh to to serve our our dear residents.
[1:39:33] So thank you so much and echo my thanks
[1:39:36] to um our financial department and our
[1:39:39] executive team and and all of our
[1:39:41] employees. Truly, there's not a level of
[1:39:44] our organization where you you where we
[1:39:48] have people that don't care or that
[1:39:51] don't want to uh uh give our ORM
[1:39:54] residents more. So, uh that's all that's
[1:39:58] all I wanted to publicly represent this
[1:40:01] evening.
[1:40:02] >> Yeah. And city manager Bobby, can I also
[1:40:04] just confirm that there's 20 minutes
[1:40:06] left of the of the Ormfest pool party um
[1:40:10] tonight and that you will try to make it
[1:40:12] before 8 in cannonball into the pool as
[1:40:15] a show of support uh for all of our
[1:40:17] residents. [laughter]
[1:40:22] » I will head there quickly and yes, let's
[1:40:25] all please enjoy Ormfest. I'm sorry we
[1:40:28] had this council meeting on our fun
[1:40:30] week, but yeah, let's let's go enjoy
[1:40:32] Ormfest.
[1:40:34] >> All right. Thank you. On that note, I
[1:40:36] would look for a motion to adjurnn.
[1:40:39] >> I don't make motion. I don't think I've
[1:40:41] ever made a motion since I've been
[1:40:42] mayor. I'm going to make a motion that
[1:40:43] we adjurnn. Do it. Yeah. I will second
[1:40:45] it then. All right. All those in favor?
[1:40:47] Bye. All right. Bye. Hey.