[0:08] You want to open?

[0:09] >> You want to start us off?

[0:13] » What's that?

[0:14] >> You want to start this meeting off?

[0:15] >> Yeah, let's start it.

[0:18] >> We can't We can't If we don't start, we

[0:20] can't finish. But I got to go

[0:24] that way.

[0:28] We'll make it quick.

[0:31] >> I can go real fast.

[0:33] >> Okay. So, we're just gonna kind of go

[0:35] over the tenative budget. You you ask us

[0:38] questions, anything you want to know,

[0:40] further information, whatever. Um, so

[0:43] the first thing we just want to point

[0:44] out that this is kind of a conservative

[0:46] budget. We don't know forward one. Some

[0:51] of the economic factors we're looking at

[0:53] is uncert uncertainty related to the

[0:56] national economy. Um cost of living is

[1:00] going up, high cost of fuel. Sales tax

[1:03] is stable for us, but other cities have

[1:06] mentioned that they are concerned.

[1:08] Theirs is not staying as stable. So I

[1:10] don't know if it's just because we kind

[1:12] of have a niche economy that maybe ours

[1:15] isn't as diversified. So you know

[1:19] current CPI is 3.3%.

[1:23] So this is an overview of the indirect

[1:25] services that we're going to make. And

[1:27] this is the cost of providing services

[1:31] to the enterprise funds and to the other

[1:33] departments. Um, for the general fund,

[1:37] it's things like your time, engineering

[1:39] time, accounting services, HR,

[1:42] administrative services, all those costs

[1:44] that we charge to the enterprise funds

[1:46] that they would otherwise have to go

[1:48] outside and hire.

[1:52] >> Um, I go fast, so just stop me if I'm

[1:54] going too fast or if you have questions

[1:56] or concerns. These are operating

[1:58] transfers. Um so they're

[2:02] transfers um just moving money to the

[2:05] general fund. Um traditionally we've

[2:08] transferred 9% of the revenue of of uh

[2:12] enterprise funds. We're trying to get

[2:14] away from doing this. We'd like to just

[2:16] do indirect service charges. So this

[2:19] year we've reduced or eliminated

[2:21] operating transfers to the general fund

[2:23] and these are kind of the areas we've

[2:24] reduced it to. We hope to keep

[2:27] continuing so we're not making that

[2:29] operational transfer in

[2:32] >> budget highlights.

[2:33] >> Can I just highlight how significant

[2:35] that is?

[2:36] >> Yeah,

[2:37] >> that is just a really really impressive

[2:39] >> go back one if you were back.

[2:46] Yeah.

[2:48] >> Yeah. We've generally transferred from

[2:50] the enterprise funds to help the general

[2:52] fund

[2:54] around 9% for sometimes even more than

[2:58] that for long as I can remember.

[3:00] >> So, I think it's good to start not

[3:03] taking it from the enterprise funds if

[3:04] we can if we can make that work. Um, we

[3:08] do have to go through a public hearing

[3:09] on this on the transfers. Um

[3:14] the one thing that the transfers the way

[3:17] we've explained I think Provo probably

[3:19] did the first good job that the the churches the schools

[3:26] uh tax exempt organization they don't

[3:28] have to pay to help the general fund.

[3:30] They're tax exempt but but they all have

[3:33] to pay their utility fees. And so that's a justification say we need some

[3:37] of those to pay in to the general fund

[3:40] for those that don't

[3:42] >> pay taxes. And so it helps it helps fund

[3:46] the fire, the police, those general fund

[3:49] um

[3:51] organization, you know, departments. But

[3:54] we are trying to wean off you see the

[3:55] water zero, the sewer zero and the rest

[3:59] have gone down to like 5%.

[4:01] It's helping to keep more of the the

[4:03] money in those enterprise.

[4:05] >> So So actually those are doing better

[4:07] than they don't have to they get more in

[4:10] their in their for their farm

[4:11] >> and the 9% is what the state allowed us

[4:13] to do, right?

[4:14] >> Well, that's kind of what we had put. We

[4:16] I think years and years ago we did more

[4:17] than that 12%. That's what we we moved

[4:20] back to. It's been 9% for quite a few

[4:23] years

[4:24] and then we're just trying to wean wean

[4:26] off of that. There's two important

[4:28] reasons too is to support the enterprise

[4:31] funds so that they can do their job. And

[4:33] the second is I think it's easier to

[4:35] sell to the citizens that we're not just

[4:37] moving money. We're not changing

[4:38] charging utility fees and then moving it

[4:41] over to the general fund. So I think

[4:44] that helps build trust the citizens.

[4:47] Yeah.

[4:47] >> Isn't one thing we've done though is

[4:49] made a better analysis of what they owe

[4:52] to the cities for their services where

[4:55] we really didn't do that much before.

[4:58] >> We kind of honed it in and that brought

[4:59] enough direct transfers.

[5:01] >> Yeah. Doing their business.

[5:02] >> That's great. So, the two transfers um

[5:05] from the general fund to the the

[5:08] electric fund and the water fund, that's

[5:10] to cover the utopia bond and the

[5:12] electric fund and the forbay bond

[5:15] because I guess at one time the forbay

[5:18] bond was a a water uh

[5:22] region

[5:24] or something.

[5:25] >> So, and it's more recreational now. So,

[5:27] we feel like the general fund should be

[5:29] paying for those.

[5:32] So,

[5:33] Um, so for fiscal year 2027, as we

[5:36] propose it right now, it's 122,976,923

[5:43] dollar budget.

[5:46] Um, for funded personnel positions,

[5:50] as I said before, we're kind of taking

[5:51] it a little bit slow. Um, we're asking

[5:54] that the positions be filled at midyear

[5:56] and we're going to re-evaluate, make

[5:58] sure that the economy is going good,

[5:59] that we're going to be safe. I'm a

[6:01] little conservative and that's kind of

[6:02] why I'm pushing it because you hear

[6:04] rumors of what's going on.

[6:07] Um, we have added an up to 4% adjustment

[6:11] to individual wages to keep wages

[6:13] competitive. 2.7% will be allotted

[6:16] through a COLA, 1.3% through merit.

[6:20] And just to remind you that in addition

[6:22] to wages, we have to pay the retirement

[6:24] system. And this is kind of the

[6:26] breakdown of of what we pay. And it can

[6:28] be pretty significant.

[6:30] um portion of benefits.

[6:34] » Sorry, could you go back to that one?

[6:46] » Okay. And I guess I just want to have a

[6:47] candid conversation about the department

[6:50] head's experience with doing the the

[6:52] merit system last year and and we're

[6:54] doing it again, but I see it's it's much

[6:56] smaller. And so what what was the

[6:58] average merit that was awarded last

[7:00] year? Do you know off the top of your

[7:01] head?

[7:03] >> Between two and a half and three.

[7:06] >> No, that's about right.

[7:08] >> Okay. Yeah.

[7:10] >> And so we we trimming that back as we

[7:12] didn't like it.

[7:16] » No, I think we tried to keep it close to

[7:18] the the CPI. No, I'm just speaking

[7:22] specifically to the merit portion of the

[7:24] last time it was it was uh you know was

[7:26] like 50% of the pick

[7:29] >> was it all 4% total last time

[7:31] >> it was 5%

[7:33] >> okay and the cola was like two and a

[7:35] half and then two and a half

[7:36] >> two and a half I think was merit right

[7:38] and two was

[7:39] >> yeah I think I think what we proposed is

[7:41] the the the cola the cost of living was

[7:44] almost 3%. Mhm.

[7:45] >> So, we put three and then two for the

[7:47] merit. I think you guys switched it. Say

[7:49] we want two for the colon, three for the

[7:52] merit. Uh,

[7:55] >> and and this we're doing the same thing

[7:57] this time. We looked at the cost of

[7:58] living for that 12 month was about

[8:00] 2.9.8.

[8:02] >> Yeah, it's about

[8:03] >> Where does that keep us competitive?

[8:04] >> What's that?

[8:05] >> Where does that keep us in the

[8:07] competitive one?

[8:09] >> I think the cost of living keeps people

[8:10] where they should be. the the merit is.

[8:12] >> But are but are we there now? Are are we

[8:15] competitive now?

[8:17] >> We try and stay competitive. Melanie

[8:19] does an analysis each year to make sure

[8:21] that we're at least competitive with other cities for comparable

[8:26] positions.

[8:27] >> 4% 4% to as a total compensation up to

[8:32] definitely represents a a more

[8:34] conservative approach, right,

[8:36] >> to compensation increases. And the

[8:38] majority of that, you know, like on

[8:40] Cathy's previous slide, you know, if CPI

[8:42] is 3.3 or 2.9 for the year adjusted, you

[8:47] know, you're barely covering that

[8:49] >> edge a little bit because the sales tax

[8:52] hoping that that sales tax stays strong.

[8:53] If it doesn't, just for us in a pretty

[8:56] good finance,

[8:57] >> we also look at other communities to

[8:59] kind of gauge what they're giving and

[9:01] kind of

[9:02] >> this is similar to what Max giving for

[9:04] us as well. Did you Did you guys mention

[9:07] what like the cost of living is like on

[9:10] average? Did he already I swear I heard

[9:12] that?

[9:14] >> That's the total like normal%.

[9:18] >> Okay.

[9:19] >> Just checked it recently. It was 3.3. I

[9:21] think when we started the budget process

[9:24] >> like like the calendar year last year, I

[9:26] think it ended up about 2.1.

[9:29] >> That's where we kind of came up with the

[9:30] numbers. inflation has been increasing

[9:33] over the last couple of months for

[9:35] >> I think we need to keep the call a

[9:36] little higher and then and that gives us

[9:38] some flexibility with the with the

[9:40] merit.

[9:42] >> Can I make one comment on that? Last

[9:44] year I think I talked to Ryan about this

[9:46] is like it was a great 5% is an awesome

[9:49] raise for all of our employees including

[9:51] ourselves.

[9:52] >> The way it was spun in the meeting was

[9:55] god they took a percent from us rather

[9:57] than us celebrating we got 5%. I would

[10:00] just hope that whatever we you guys

[10:02] decide on that's what it is and it

[10:04] doesn't get out to our employees like they felt I don't know how it got

[10:08] out but rather than celebrating wow that

[10:10] was awesome for us to get 5% it was like

[10:13] boy the council doesn't believe we're

[10:15] worth the full they took a percent from

[10:17] us that make sense and it was all

[10:19] perception

[10:20] >> 5%'s awesome

[10:21] >> I think it makes sense but I mean like I

[10:23] also look at it too of like I have a

[10:26] regular job right And

[10:29] I don't get that. And so like I'm

[10:31] thankful some days, especially in

[10:32] certain economies, to have a position.

[10:35] And I'm not saying you guys aren't worth

[10:36] it and they're not worth it. I just hope

[10:38] that the employees, if they do see that,

[10:40] like, oh, it's a 1% decrease again and

[10:43] they get upset about it.

[10:46] I like there's just so many that, you

[10:48] know,

[10:50] >> this isn't necessarily 1% decrease. It

[10:52] is what you're saying. It's just what it

[10:54] starts out.

[10:56] >> Yeah. Yeah. What? I'm just saying it was

[10:58] five and it could have been like if I go

[11:00] in there and and like you said, if I

[11:02] have employees and I go and we and they

[11:04] think they're getting 4% and I go in

[11:06] there and go, "No, you guys are awesome.

[11:08] We're giving you 5%." Or we go in there

[11:10] with six and and we go, "We like you,

[11:12] but you guys are going five." It's all

[11:14] 5%, but the perception is totally

[11:16] different.

[11:17] >> Whatever. I agree with whatever you give

[11:20] we're all I'm thankful for,

[11:22] >> but it's just how it was perceived.

[11:24] That's it. Not Not the number. Yeah.

[11:26] >> Just how it was presented and perceived.

[11:28] >> And I like the merit idea personally

[11:30] about that.

[11:30] >> And if and if the perception is the

[11:32] issue, this is the first time that we

[11:33] see the numbers.

[11:34] >> Yeah.

[11:35] >> And so if that's the issue, then we need

[11:36] to see the numbers sooner. If that's

[11:38] truly creating a resentment against the

[11:40] employees because for me, this is this

[11:42] is where we start and we scrutinize, we

[11:44] look at before we approve.

[11:45] >> That's my point is like you see the

[11:46] numbers and you guys find what's

[11:48] comfortable for the market with the

[11:50] staff or whatever. and and yeah, and

[11:52] that's

[11:53] >> so so for me, I'm I'm quite comfortable

[11:55] with with a 4% uh this year. I think

[11:58] that's competitive and and fair and

[12:00] still conservative, too, which I'm I'm

[12:02] thankful for. Really, thank you guys for

[12:04] tightening belts a little bit this year

[12:06] compared to last. And so I guess the

[12:08] only seed I want to plant for for the merit is is I I hope that uh that's

[12:14] really working for the department

[12:16] managers that it's not breeding uh

[12:18] mistrust or favorites or or anything

[12:21] else like that or or hatred or within the departments. And so I hope

[12:26] I'll let you guys figure out. I just

[12:27] hope we have the the courage to have

[12:29] those tough conversations that if the

[12:30] merit's not working then get rid of it.

[12:33] And if it is truly incentivizing then let's do it. But if we see our

[12:37] merits usually always at the top, is it

[12:41] working? I don't know. Are we using it

[12:43] as a tool to help incentivize or we just

[12:45] using as a tool to punish a few people?

[12:47] >> Well, when you go one, let's say you go

[12:49] a one to 1.4% on a merit, is that enough

[12:53] to move the needle on an employee,

[12:55] >> right?

[12:56] >> Is is that kind of what you're saying?

[12:57] Okay, I'm going to give you

[13:00] >> 7% or and they're like, yeah, that's not

[13:02] worth me putting forth the

[13:04] >> the 200 bucks ain't worth the that's

[13:09] not, you know, just going through hell

[13:11] to get

[13:14] >> I'm hoping that all of it's unrealistic,

[13:17] but it's a goal that all of our

[13:19] employees are at the top of their merit.

[13:23] Yeah, that would be I'm hoping that all

[13:26] would be that would be all that would be

[13:27] the target statistically impossible to

[13:30] awesome.

[13:31] >> Well, if we're doing it that way, then

[13:32] we should just do flat colon and that's

[13:35] what it is, right?

[13:36] >> Yeah. And then we've had this debate,

[13:37] not that I need to get in, but but

[13:39] you're right. If it's black cola,

[13:40] where's the incentive to

[13:42] >> go the extra mile and do everything

[13:44] instead of or if you have someone that's

[13:46] not merit that comes in who's been here

[13:48] for five years that's way better than

[13:50] Tracy who's been here for 30, you know,

[13:53] you're like, "Yeah, sorry. This is our

[13:54] first round draft pick and we're going

[13:56] to pay her more than you, you know,

[13:58] because she brings more value."

[14:00] >> So, yeah, it's a this is a discussion we

[14:02] could

[14:03] >> Well, we've obviously Yeah. But

[14:06] >> there's always working within your

[14:07] departments. I think we ought to go back

[14:08] to what Tracy said. I think we ought to

[14:10] put this at 3% today. City council on

[14:12] May 6, we paid for.

[14:14] >> Absolutely. That's my point. That's my

[14:16] point. And then every employee goes,

[14:18] "Holy cow, the city council, they were

[14:20] going to vote three. They went four.

[14:21] They love us." Then it all ended up at

[14:23] 4. That was my point with Ryan at about

[14:25] 4 a.m. or whatever. And we're not even

[14:29] drinking.

[14:32] The only other thing that I'd say about

[14:33] this page is that very top bullet point,

[14:36] that 122 million, that's actually a 5%

[14:39] decrease from previous year.

[14:42] >> Awesome.

[14:43] >> But our I I heard I heard counselor Clet

[14:45] say this once, too, and I agree. Our

[14:47] employees are our best assets. We want

[14:49] to make sure they they know we love

[14:50] them,

[14:52] >> but we also want to get the best. And

[14:55] that's how we get the best keepers being

[14:58] competitive.

[14:59] >> The not so best or the ones that don't

[15:01] love it.

[15:01] >> Yeah, I agree. In general, a good

[15:03] employee is going to be a good employee

[15:04] no matter what number you put up there.

[15:05] And a bad employee is going to be that's

[15:06] >> integ but the higher we are to

[15:10] competitive.

[15:12] >> Absolutely.

[15:13] >> Thank you. But thank you for being

[15:15] conservative on the pay raises because

[15:17] you guys are most important assets. I I

[15:20] wish we could give you all a 30% raise.

[15:22] We're not there yet. So, thank you for doing what you do.

[15:37] » There's still a chance.

[15:40] >> We're not there yet.

[15:40] >> This is being recorded, right?

[15:43] >> You're saying there's still a chance.

[15:48] » Not this festival yet.

[15:55] Um, again, we've given department heads

[15:57] pretty much what they've asked for in

[15:59] operations.

[16:01] Um, just a note, the budget is balanced,

[16:04] but we have one big project in the

[16:06] general fund for about 750,000. We're

[16:09] going to try and get it done this year,

[16:10] but that is going to affect the budget

[16:12] if we have to roll it over next year.

[16:15] Um, and just as a reminder, the tenative

[16:18] budget adoption is statutory. Um after

[16:21] the adoption of the tenative, you guys

[16:23] can do whatever you want with the

[16:24] budget. If you want to have more

[16:26] meetings, if you want to make changes,

[16:28] whatever before we adopt uh June 17th.

[16:34] Okay. So, our insurance renewal, general liability increased 3%, workers

[16:39] comp increased 3%.

[16:42] Employee health insurance did not

[16:44] increase. Melody really worked hard.

[16:46] Wow.

[16:47] >> Yeah.

[16:49] the amount of

[16:50] >> Don't worry, put it all in dental.

[16:59] » Um, we are cautiously optimistic

[17:01] throughout the management of this

[17:03] budget. The city will monitor the econ

[17:05] economy. Um, and again, even though

[17:08] we've allotted budget for new employees,

[17:10] we're going to reassess mid year, make

[17:13] sure we're doing good and everything's

[17:15] tight. Could I make a comment about

[17:17] you've given pretty much you pretty much

[17:19] what they want. I think that's critical.

[17:21] So they know what they need to to run

[17:24] their departments and we need to be able

[17:26] to be right on on point with those kind

[17:29] of things.

[17:33] » Well, maybe I can just make comment on

[17:35] that. Um, when I first started here a

[17:38] long time ago,

[17:40] the the discussion, maybe Scott

[17:41] remembers that, the discussion was about

[17:44] March or maybe April, you got to spend

[17:47] what's in your budget or you're going to

[17:48] lose it. And people would spend to the

[17:51] point where the I think it was Janette

[17:55] at the time said, hey, no more spending.

[17:58] >> You can't spend anymore.

[18:00] And that's kind of gone away. We we we

[18:02] budget for what they need. But

[18:04] >> the the the departments don't spend it

[18:07] if they don't need it. So we always we

[18:10] always estimate conservatively, but we use fund balance to help balance the

[18:15] budget, which I'm not always a fan of

[18:18] that because if if you have to use your

[18:20] fund balance year after year out, then

[18:21] your reserves fall. But every year we

[18:24] use some fund balance to balance the

[18:25] budget. But by the end of the budget

[18:28] year, we haven't we haven't used that

[18:30] fund balance because our revenues have

[18:32] been better than projected and our

[18:34] expenses have been lower. We're not

[18:35] having departments going out and

[18:36] spending everything that's in their

[18:37] budget. It just falls back to fund

[18:39] balance. So, in the end, our fund

[18:41] balance grows a little bit even though

[18:43] we use some to balance the budget. So, I just I appreciate the the departments

[18:49] and how they they just they spend their

[18:52] money wisely. It's not a a race at the

[18:54] end of the budget to spend everything in

[18:55] there so you don't lose it.

[18:57] >> And and the reason I said what I said is

[18:58] I went through and this is 20 years ago.

[19:00] >> Yeah. Mayor, you probably remember that.

[19:02] >> Yeah. It was actually they had totally

[19:05] different staff. Some are still here,

[19:08] but they're in a different position than

[19:10] they are now. We were told, "Don't you

[19:13] dare tell the council what you need

[19:15] because it makes it easier on the

[19:17] council not to see it." Well, if you

[19:18] need it, you got to put it in there.

[19:21] give the give the the council a chance

[19:23] to fund it for you. That's that's why I

[19:25] think it's need to be realistic. I was

[19:29] starting to get off.

[19:29] >> No.

[19:32] >> So, we're proposing the following

[19:33] positions. A new police officer. Um with

[19:36] some promotional opportunities for two

[19:38] other officers.

[19:40] Um six EMTs for the ambulance

[19:42] department. Um and we're going to offset

[19:44] that with some of the part-time

[19:46] personage. A water employee with some

[19:48] seasonal help. um some adjust

[19:51] adjustments for a public information

[19:53] officer and a GIS position.

[19:57] So,

[19:58] >> uh Chief, the the EMTs, those are all

[20:00] part-time positions. Those six proposed

[20:03] new ones or

[20:04] >> those are full time.

[20:05] >> Yeah, we're we're getting way behind it.

[20:07] >> Yeah, we went through a meeting with

[20:09] Barto and they we really need to step it

[20:12] up.

[20:13] >> This is where we're starting the

[20:14] transition between a volunteer

[20:16] department with the new fire station

[20:18] coming on. You try to fill it with

[20:20] volunteers and they're all working for

[20:21] somebody else.

[20:23] >> Maybe an idea. I know Spanish work is

[20:24] bigger, but Spanish has 41 full-time, 29

[20:29] part-time, and 17 volunteer.

[20:31] >> Lacy, here's an opportunity for you to

[20:33] get on.

[20:35] >> I was going to say if little ducks would

[20:38] stop falling in,

[20:41] >> we don't need.

[20:43] >> That's what we call Phil.

[20:46] >> They were very cute. wasn't all the new

[20:48] bike crashes we've

[20:49] >> Oh, and kids getting six

[20:53] department basically they'll they'll pay

[20:56] for themselves.

[20:57] >> Yeah, because we're we're pushing that

[20:58] they're going to be all paramedics. So,

[21:00] it's a higher

[21:01] >> bailing rate.

[21:02] >> Okay.

[21:03] >> And they will be dedicated to the city,

[21:05] not so some other city come

[21:07] >> one paramedic per shift.

[21:09] >> Two paramedics per shift.

[21:10] >> Two paramedics.

[21:11] >> Problem is it's being with two different

[21:14] ambulances at once if needed. have one

[21:16] paramedic on the ambulance. Okay.

[21:18] >> So that way if we have whether it's a

[21:19] transfer or medical call and then we get

[21:22] a critical care because right now

[21:23] there's times critical care and my

[21:25] paramedics either on another call or I

[21:29] didn't get a paramedic for the day.

[21:31] >> So there days I don't have paramedics.

[21:33] So that'll fix that solution. And um

[21:37] Mountain View Hospital

[21:40] um takes more critical uh patients in

[21:44] the only other hospital that takes more

[21:46] in HCA is St. Marks out of all their

[21:48] hospital network.

[21:49] >> We're very fortunate to have Mason.

[21:52] >> So we get a lot of critical care

[21:54] patients better take out of

[21:57] >> I'll tell you a quick story. We had one

[21:58] of the doctors come out and talk to us.

[22:00] You know where I'm going.

[22:01] >> Yeah. He kept saying patio patient is

[22:04] really really sick and I heard that

[22:06] about five or six times and I finally

[22:08] turned to him and said stop saying that

[22:10] >> patient is not sick okay you you take

[22:13] care of a lot more critical care okay

[22:14] then that's fine but don't tell us the

[22:16] patient is sick

[22:20] my problem is very saying that you're

[22:22] saying it to somebody else

[22:24] >> as people from the geographical area

[22:26] come we have a lot of a lot of different

[22:29] >> this is a tough transition I get nervous

[22:31] about But Scott knows that I I'd rather

[22:34] wait to do this, but it's got to happen

[22:36] sometime. And we've got

[22:37] >> like we could do it and when fire

[22:40] station gets done, it' be a natural

[22:42] thing to start building upon that.

[22:44] >> Chief, will these paramedics be fast

[22:45] trained fire as well or no?

[22:46] >> Yeah, we hire everybody. Well, we hire

[22:48] them through medical, but we if they

[22:50] don't have their fire search, we we do

[22:52] that because I can do that for free.

[22:54] >> Okay. Excellent. So, by the end, these

[22:56] paramedics also

[22:57] >> most of them already are that we hire.

[23:00] Yeah.

[23:00] >> Yeah. But it the nice thing is is it's

[23:03] the as you know the ambulance is

[23:04] enterprise fund so there's no tax

[23:06] revenue going to those positions.

[23:09] >> It's all funded by the

[23:13] » Travis the water employee with seasonal

[23:15] I'll explain more on on that one.

[23:17] >> So Cameron would like so with the

[23:19] federal mandate that we have to do let

[23:22] stuff like he would like to hire a

[23:24] couple seasonal

[23:26] helpers to go either replace meters or

[23:29] to help replace laterals. So, we have

[23:31] some more help there. And then um then

[23:35] just another employee just because I

[23:36] mean when you look at it, we've got a PI

[23:38] system, a drinking water system, we've

[23:41] got the lakes, we do an we actually are

[23:43] an irrigation company to Oldfield and

[23:45] for North. We have a lot that goes on.

[23:48] >> Yeah. And and these ones would be

[23:49] seasonal just while the the systems

[23:51] energize. You're thinking also fulltime

[23:53] full-time employee.

[23:54] >> Yeah. And fulltime would be obviously

[23:55] all the time, but yeah, the seasonals

[23:56] would be kind of as early as we could

[23:58] get them, like say March, April if if we

[24:00] I mean, obviously this year we're past

[24:01] that, but you know, start there even

[24:04] when school got out and then basically

[24:06] to the end of summer.

[24:07] >> Okay.

[24:08] >> And we've got the budget for that.

[24:11] >> And the GIS, that's that's the gal

[24:14] that's been helping us do that. And I

[24:16] understand she helps a lot of the other

[24:18] departments, too, right?

[24:19] >> I would love to see her. She unveiled an

[24:22] app yesterday for sidewalk policy that

[24:25] she

[24:27] >> amazing.

[24:29] >> She has a big she has a good asset

[24:32] >> and chief with a gun.

[24:38] » Um a new police officer puts what 20?

[24:41] >> He doesn't need one.

[24:43] >> Okay. And you feel there's there's a

[24:45] need there? Sell me on that, chief.

[24:47] >> Oh yeah, we do 30. That'd be better. I

[24:50] see.

[24:52] >> Are there any other programs, federal

[24:54] programs like fast golf cops?

[24:58] >> Um, yes. It's well, number one, it takes

[25:01] about a three-month dedicated employee

[25:03] to get the cops grant and we don't have

[25:04] that employee. So, with one of these

[25:06] promotion opportunities would be grants

[25:08] as well. So, we could be over that. So,

[25:10] yes, we could get those pretty

[25:11] competitive like it is,

[25:12] >> you know, Houston, Salt Lake City,

[25:14] Milwaukee. I mean,

[25:16] >> we have done it in the past. um they pay

[25:19] for the officer for three years and then

[25:21] we pick up the tab. So I did look at it

[25:23] this year and it was I I don't think we

[25:25] would have had a chance just based on

[25:27] you know the guy like Houston 50 and Las

[25:29] Vegas 100. It's pretty hard for a

[25:31] smaller department to get them. It's not

[25:33] unheard of, you know. I think I think

[25:35] Salt Lake got 10. So maybe we could get

[25:38] one out of that. So

[25:40] >> and we got a couple in the in the past

[25:42] when I you know

[25:43] >> I think we got two.

[25:44] >> We did it over a number of years. We in

[25:47] total probably about four or five over.

[25:49] >> Yeah. The last one we did was probably

[25:52] 2014 I think or something like that.

[25:55] >> 2012 after this

[25:56] >> maybe in a while. Yeah.

[25:58] >> Well, we but we went through about

[26:02] time where we did that and then we hired

[26:04] from our reserves and that really was

[26:06] benefit.

[26:07] >> Yeah. Reserve is unheard of anymore. I

[26:09] mean nobody I mean there's so many

[26:11] openings right now. Like I just talked

[26:13] to Springville. They have nine openings.

[26:15] >> Wow. 's hiring. I mean, it's all over.

[26:18] Everyone's hiring.

[26:19] >> Well, they're just not competitive in

[26:20] the market as far as wages. So, that

[26:22] they're losing.

[26:24] >> Yeah.

[26:24] >> I mean, they're always

[26:30] coming to a crime

[26:32] >> and they have been doing it. work has

[26:34] gotten announced.

[26:37] » Well, that why

[26:40] >> Emma graduates in December. So that

[26:42] would be a good time if this stays in

[26:44] the budget we get.

[26:46] >> Yeah. And on all these we're trying to

[26:48] do that mid year.

[26:49] >> Midar making sure we know how the

[26:50] economy is doing except for the two

[26:52] seasonal that's going to be the summer.

[26:58] » Okay. Proposed utility rate increases.

[27:01] Uh we are proposing no increases to

[27:03] utility rates for 2027.

[27:09] » So the city is going to have to look at

[27:11] rate increases. One of the problems

[27:12] we're having and has come up with the

[27:15] sewer bond that's going to come forward

[27:17] next uh Wednesday. And also with the

[27:19] Lithia bond, we have to maintain 1.25%

[27:22] bond coverage, meaning we have 1.25

[27:25] times revenue over the cost of the debt.

[27:29] Um

[27:29] >> I thought we figured that in Kathy or

[27:31] didn't we budget?

[27:34] >> Well the problem is is as we do our

[27:36] proformas as we go out a little bit we

[27:40] were really really tight. So in the

[27:42] analys analysis we did on the wifia bond

[27:45] we told them that in five years

[27:47] hopefully the council will be willing to

[27:49] whiff at raising um sewer and water

[27:53] rates at least so that we can have that

[27:56] bond coverage. It is a legal

[27:58] requirement. So if you agree to the

[28:00] bonds, you agree that you will have

[28:03] sufficient revenue to cover.

[28:04] >> I can't see over a fivey year period not

[28:06] happy to do that.

[28:07] >> Yeah. And you might have to do it

[28:08] sooner. I mean, we'll have to look at

[28:10] the growth and things like that, but

[28:12] this year

[28:14] we were able to

[28:16] >> I'm still waiting to see the

[28:20] >> the study to see like the I can't think

[28:23] of the word now of what we were going to

[28:25] look at possibly for like water and such

[28:27] and sewer. um like the feasibility of

[28:30] the of our rates because um I mean I

[28:35] still keep coming back to what we're

[28:36] charging other I mean I went on those

[28:39] cities of what they charge their

[28:41] residents

[28:42] >> and some of like Woodland Hills is

[28:44] double what we charge Woodland Hills and

[28:48] so I just think that before the

[28:51] pitchforks come out of us increasing the

[28:53] sewer. We have a very high sewer

[28:55] compared to other people. I would want

[28:57] to see that to actually have that

[28:59] justification ever raising it. That's

[29:01] just my honest opinion because if we're

[29:03] going to provide the service for someone

[29:05] else, we should pay for

[29:06] >> pay for that before our residents

[29:08] continue to pay for it in many different

[29:11] ways besides just our sewer rate, but

[29:13] also tax increases or anything else. So

[29:16] that's just my feeling on it.

[29:17] >> Well, just kind of

[29:19] >> and I know you're familiar, but an

[29:20] enterprise fund supports itself. So it's

[29:22] not tax supported

[29:25] >> and well I meant like I thought the

[29:26] sewer didn't we does the bond pay for

[29:29] itself too

[29:30] >> it is fee supported and what you say

[29:32] just charge the name of cities who use

[29:34] our system

[29:36] >> yeah

[29:37] so that's so I'm just saying like before

[29:40] we raise it for our residents raise them

[29:43] >> like I just

[29:45] >> I think I mean I've only been in since

[29:47] January and I think everyone can say

[29:50] that the number one thing besides

[29:52] broil's wrinklers I hear about is uh

[29:56] just you stay on that new utilities and I just I really think that

[30:02] it would it would I know it's going to

[30:04] be needed. I get that but

[30:06] >> it really just those areas are growing

[30:09] too.

[30:09] >> Yeah.

[30:10] And so anyway, that's just my

[30:12] opinion.

[30:13] >> If we're charging somebody else, we have

[30:14] to charge them enough. But we have to

[30:16] remember that we have inflation and we

[30:19] have to keep up with these projects. And

[30:21] if we try to keep it at zero, we're

[30:24] getting behind. But we have to keep that

[30:26] in mind that we we don't want to get

[30:28] behind. I just the league conferences

[30:31] and they says don't get behind on your

[30:35] >> fees and keep your project your

[30:38] utilities up to the stuff and keep on

[30:40] top of things. So

[30:41] >> that's why I'm excited to see this one

[30:43] year where we go with that.

[30:46] >> Yeah. But no, that's why I'm saying I

[30:47] would love to I can't wait to see what

[30:49] the numbers say. the report says of

[30:52] showing us when we will have to so we

[30:53] don't get behind. Also

[30:56] for residents that don't understand

[30:58] everything that's in this book because

[31:00] let's be honest most you know they this

[31:04] isn't their forte. So all they see if

[31:06] they skim through this is let's say we

[31:08] did do an increase. You increase you're

[31:11] giving every you know every employee a

[31:14] 4% raise and and you gave them a 5% last

[31:17] year and now you're going to increase my

[31:18] utilities again. What else are you going

[31:20] to get from me? And that's the trouble

[31:23] that this that's that's what I'm saying.

[31:25] That's what residents see. We all know

[31:27] that they don't dig into things. They

[31:29] just see one number and run with it.

[31:32] >> Right?

[31:33] >> That's what I'm trying to avoid. And one

[31:35] of the and we've already mentioned it,

[31:37] but one of the things we're trying to

[31:38] support our our friends that's struggle

[31:42] just a little bit are film drain sewer

[31:44] and water and if we quit making the

[31:47] transfer that also supports that and

[31:49] that way because they can use their own

[31:50] revenues, you know, towards

[31:52] >> No, that's great. I think that's great.

[31:53] So anyway,

[31:54] >> what's stopping us from increasing the

[31:56] fees for those other communities?

[31:58] >> I don't think I don't know.

[32:01] I think we need I think the agreement I

[32:03] think the agreement says if we raise we we we have to raise commencement with

[32:07] what we do with the other

[32:08] >> I don't think so because Travis and I

[32:10] sat and read it and I didn't see

[32:12] anything about that. It just said that

[32:14] we had to give them

[32:16] whatever day notice for them to find

[32:18] something else. And so again

[32:20] >> up while we're talking

[32:21] >> No. Yeah. Okay. Yeah. Well, we found

[32:24] like we found the original one though I

[32:26] think is what we found in your office

[32:28] >> by hand. Is there I I found one.

[32:30] >> You tried to find like all the

[32:31] amendments.

[32:33] >> I found it.

[32:33] >> It was But yeah, like I just And then my

[32:36] guess my question is like who made that

[32:39] agreement?

[32:40] >> That's silly.

[32:43] >> Well,

[32:49] » yeah. So anyway, okay. But

[32:51] >> yeah, I we couldn't find any amendment.

[32:53] So that was the other thing that

[33:03] waterfront

[33:15] » keep going guys.

[33:17] >> So we're transferring uh money from the

[33:19] general fund uh to cover a foray bond.

[33:21] We mentioned that before. Um the water

[33:24] department is charged with federal lead

[33:25] and copper lateral replacements and

[33:27] those have been funded. Um again we're

[33:30] looking at Wikia bonds um to a number of

[33:36] projects in the water area and in the

[33:38] sewer area.

[33:39] >> I've got it strong.

[33:41] >> Oh no.

[33:42] >> Our budget's easy.

[33:44] >> Um we're going to bring back with you

[33:47] information. It's not in the budget yet.

[33:49] We're not quite sure of the timing of

[33:51] the funding and all that. So that'll be

[33:53] coming back to you through a budget

[33:55] adjustment.

[33:56] Um it also put in for the design of the

[33:58] main street project.

[34:02] These are the items in the colory um

[34:05] colors that have been funded and the

[34:08] black items listed here are the ones

[34:10] that we have not funded this year. So um

[34:13] what was requested is 5,762,978

[34:18] worth of projects. We have funded

[34:21] $1,862,978.

[34:24] Now some of these will come along with

[34:26] the WIFIA. So

[34:30] this is the water fund. It's an

[34:32] 8,736,000

[34:34] fund.

[34:36] Sorry. Um there's a lot of details

[34:39] there. Um

[34:42] it is to the good 894,000.

[34:45] A good portion of that is we did not use

[34:47] as much fund reserves as we did the

[34:50] previous year.

[34:51] >> Is that represent a 5% or is that not in

[34:56] >> I I don't know. I didn't put the numbers

[34:58] to it. I'm sorry.

[34:59] >> I was just going over the overall budget

[35:01] you said it was a 5%.

[35:03] >> Yeah. For all the funds added together.

[35:07] Um impact fees. Um there's some projects

[35:11] for the water. There's some uh

[35:14] reimbursements and and some studies and

[35:17] some master plans and things like that are in the water impact. The detail

[35:21] is is in your budget documents. And I'll

[35:25] just say it's, you know, if you have any

[35:27] questions as you look through the

[35:28] document, please call me and we'll go

[35:30] over it and we'll try and explain it and

[35:32] we'll make sure you understand

[35:33] everything that's in there.

[35:34] >> Can you go back about three slides on

[35:36] what?

[35:37] >> You bet.

[35:41] One more.

[35:43] >> So, eight West. Is that going to be

[35:45] under whip? Yeah.

[35:48] >> Yes.

[35:48] >> Because that we need to get that done.

[35:50] Sure.

[35:51] >> So,

[35:52] >> that's the intention.

[35:53] >> Okay. Thank you.

[35:56] >> And on this page, council member, that's

[35:59] actually about a 10%.

[36:02] >> Is it?

[36:08] Okay, solid waste.

[36:11] Some highlights not fast. A great deal

[36:13] of the budgeted expense of the landfill

[36:15] pertains to maintenance and

[36:17] improvements. In addition to the

[36:19] landfill, solid waste department handles

[36:21] garbage collection and city snow

[36:23] plowing. Landfill operational This was

[36:26] just interesting to me so I added it.

[36:28] Landfill operational cost includes

[36:30] $50,000 in single mitigation.

[36:32] >> Bottles of it for 49. That's a lot of

[36:35] >> shot.

[36:43] » They don't come out at night.

[36:45] >> That's why

[36:49] the landfill is getting a lot of r

[36:51] revenue from CND revenue. Um some

[36:54] demolition of some schools and things

[36:55] like that are coming to the land. So

[36:57] it's really

[37:00] >> um the landfill requested fencing and a

[37:02] 10 meltdown. Um the 10 wheel dump is

[37:05] actually a rollover from this year. So

[37:07] we will pay for the body of the 10 wheel

[37:09] dump this year and next year will be the

[37:11] sander and another component.

[37:14] >> Can I say about the landfill how

[37:16] grateful I am to those people that were

[37:18] influential in keeping that around when

[37:20] all the other cities were shutting

[37:22] theirs down,

[37:23] >> Pac kept theirs open. It's been a

[37:25] blessing for our residents, our

[37:27] pocketbooks, everything. We are so we're

[37:29] so grateful that they made the decision

[37:31] took

[37:34] a lot of hits from the state and

[37:35] everybody else but now we're one of the

[37:36] few left with a a landfill for both

[37:38] residents and commercial

[37:40] >> public

[37:43] run.

[37:44] >> Yes. Yes. I'm grateful we catch that.

[37:49] » Um here's a solid waste budget is $4.4

[37:53] million.

[37:55] It's um a little bit up last year

[37:58] 141,000

[38:00] uh greater than last year and the

[38:03] expenditure side

[38:07] » electric power

[38:08] >> Sean's not intended attendance

[38:12] he got invited to a special meeting and

[38:15] he firmed that they asked him to come

[38:17] and attend his own that's well Nothing

[38:20] is about

[38:29] the large large cap of projects that are

[38:32] scheduled is the transmission line and

[38:33] that's through impact fees. The

[38:35] substation through impact fees at least

[38:37] the majority are through impact fees.

[38:39] There's some also in the operating

[38:41] budget. The power plant construction

[38:44] continues and lighting projects. Um 2027

[38:48] was scheduled as a third of a four-year

[38:50] rate increase plan. We're diverting

[38:52] that. Um we're not doing that this year,

[38:56] but we might we'll probably have to pick

[38:57] that up to keep pace with with some of

[38:59] the costs. Um electric plant payments

[39:02] made through Uamps or through

[39:04] operational billing and we do not

[39:07] recognize the asset or the liability

[39:09] until it's paid paid off. Us is

[39:11] recognizing that.

[39:12] >> So that's

[39:14] >> a transfer from the general fund. I

[39:16] mentioned this already for the utopia

[39:17] preampunks.

[39:19] >> I have a question on that.

[39:20] >> Go back a second.

[39:22] >> On the transmission line substations,

[39:25] even though they're paid through impact

[39:27] fees, um do we do those up front? Do we

[39:29] have to bond for them and then the

[39:31] impact fees pay for them? And if they don't come as fast as we want, then

[39:35] come out of our general fund.

[39:37] >> I'm I Well, it won't come out of the

[39:39] general fund. It would come out fund,

[39:41] >> right? But

[39:42] >> as far as I know, I've went with the the

[39:45] prices that um Sean's given in. So I'm

[39:47] assuming that impact fees will cover a

[39:49] portion of those. I don't know how far

[39:52] it'll go.

[39:54] >> We have the impact fees already in place

[39:56] or Okay. So about right there.

[40:00] >> He talked to me about a little bit about

[40:02] the transmission line today. He said

[40:03] that he I think the number he said was

[40:06] around 7 million to spend on impact

[40:08] fees.

[40:08] >> Then we're not going to be there. No, we

[40:10] won't be there. So,

[40:12] >> but

[40:15] it was from the line going from the high

[40:18] school to

[40:20] the

[40:21] >> 19

[40:24] the Spring Lake substation.

[40:25] >> Yeah.

[40:26] >> Firehouse subs. Yeah,

[40:31] » that's the provider park.

[40:33] >> So, this is the requested and the funded

[40:37] um a lot of big things. One of the

[40:40] things I want to point out is the main

[40:42] street project. In the past, we funded

[40:44] that strictly out of the capital

[40:46] improvement fund and at the other end of

[40:48] the year, we transferred the assets and

[40:49] the cash to the enterprise funds. This

[40:52] coming year, we're just going to

[40:53] recognize it's going to be grant covered

[40:55] for phase three. we're going to

[40:56] recognize it straight to the enterprise

[40:58] funds. So that's why you're going to see

[41:00] that. So it's a grand offset with the

[41:03] advance to complete that phase three.

[41:06] >> So back to 800 West, this won't be

[41:08] covered by whip, right? So no,

[41:10] >> how are we going to cover that if it's

[41:12] not in the budget?

[41:15] >> Maybe in next year.

[41:17] >> Yeah, we'll have to find the funding for

[41:19] it. Okay,

[41:20] >> because that needs to be funded for

[41:22] doing the rest of it, right?

[41:27] Okay. Electric fund uh expenditures 23,691,51

[41:37] and

[41:39] um I skipped one. I'm sorry. The

[41:41] revenues were offset that and the power

[41:43] impact fees. And you'll see the the 4.5

[41:47] million that's for the transmission line

[41:49] and the substation that's scheduled for

[41:51] this year.

[41:54] that almost brain I'm sorry I should

[41:57] have said before the 3.2 2 million um

[42:00] contribution from fund balance that eats

[42:03] the majority of the impact fees we have

[42:05] in research right now.

[42:09] The sewer plant

[42:12] um the sewer department continues with

[42:14] the construct for the plant sewer

[42:16] department is a in a unique depart uh

[42:18] position because 64% of operational

[42:21] revenue goes to debt service. That's

[42:23] huge. That's a that's a lot of debt.

[42:26] Now, that include the $5 million bond

[42:29] that we're just issuing, but it does not

[42:31] include the WIA payments that are coming

[42:33] up. Um, there's a $5 million bonds we'll

[42:37] bring forward on Wednesday. Um, and

[42:41] again, the sewer must maintain a 1.25%

[42:44] bond coverage. So, we're going to have

[42:46] to look at that in coming years. The

[42:48] sewer um department is 26.472

[42:51] million. Um, the biggest portion of that

[42:54] is right here. that $17 million in

[42:56] improvements to the plant.

[43:00] The impact fees are right there. And

[43:02] this consists again on some

[43:03] reimbursement for

[43:06] um developer developer reimbursements

[43:09] and things like that. Some master plans.

[43:12] And this is the request in the funded of

[43:15] the capital for the sewer plant. The

[43:17] video truck we are having them prepay it

[43:20] into the revolving loan fund. And then

[43:22] hopefully in two years they'll be paid

[43:24] off and they can go ahead and get their

[43:25] truck. Um

[43:29] I don't think there's anything other

[43:32] >> you can cover that

[43:35] >> truck. No, they

[43:40] ambulance department

[43:43] um the ambulance is almost at capacity

[43:46] at what they can provide for the city um

[43:48] with available personnel. Uh we have

[43:51] funded six full-time positions. We've

[43:53] already talked about that. An ambulance

[43:56] was ordered last year and it should be

[43:57] received this coming year is my

[44:00] understanding.

[44:01] >> We hope

[44:05] it's like a Rolls-Royce. They build it

[44:07] by hand. So you better order again

[44:17] an ambulance impact fee study is being

[44:18] updated right now. So this is what the

[44:22] ambulance has requested is the equipment

[44:25] and six full-time positions. They would

[44:27] like 14 full-time positions but

[44:32] we funded six for right now. The they

[44:34] would like another second ambulance. Um,

[44:39] >> we haven't funded that yet.

[44:40] >> Yeah.

[44:43] >> The problem with the hills is we're

[44:45] getting to about 200,000. That's 100,000

[44:48] too much.

[44:52] >> Yeah.

[44:53] >> That's the engines that are

[44:59] engine 1.5. The ladder trucks 2.5. We'll

[45:03] get to that in just another minute.

[45:05] >> Yeah.

[45:10] » The big toys.

[45:12] >> So, this is the ambulance budget right

[45:13] here. 2.15%.

[45:16] As you can see, it's gone up

[45:18] significantly because of the employee

[45:20] costs. The golf fund.

[45:23] >> Trace is time. Trace is tired. So

[45:29] » golf course is constructing the park

[45:32] golf course. Um the RV park is reserved

[45:35] out early and it's it's doing wonderful.

[45:38] So the golf course requested and funded

[45:40] is completion of the par four par three

[45:43] and that's kind of an estimate and the

[45:45] real grinder

[45:47] and this it's a 4.152

[45:50] in revenue using some fund reserves and

[45:53] an offsetting uh

[45:58] Boy, I missed the expenditures on that.

[46:00] I'm sorry. I've got two revenues.

[46:02] >> Yeah, we don't want to show crazy

[46:04] salary.

[46:11] » So, the storm drain highlights. Again,

[46:13] this is one of those departments that

[46:15] are kind of on the margins a little bit.

[46:17] So, we got to be careful with storm

[46:18] drains. The primary purpose of the storm

[46:21] drain is to help enforce EPA regulations

[46:23] regarding illicit discharge detection

[46:25] elimination. The city has allocated

[46:29] $250,000 for urban gutter. That's

[46:32] through a CDG grant this year.

[46:34] >> And is that to upgrade existing or to

[46:36] create

[46:40] » maintain new?

[46:43] I think I think

[46:45] >> Yeah, I was going to say CBG

[46:47] is

[46:48] >> outside. That's like 10 blocks, right?

[46:52] >> Yeah. Yeah.

[46:55] >> Yeah.

[46:56] >> 10 houses.

[46:57] That's what

[46:58] >> CDG is only existing, Robert. Is that

[47:00] what you said?

[47:01] >> Yeah.

[47:01] >> Okay.

[47:02] >> Yeah. That CBG that's been we rolled it

[47:04] over to because of what needed to be

[47:08] done before before put something on the

[47:10] ground. Yeah.

[47:24] Okay. The

[47:25] >> storm drain revenue is 2.3 million and

[47:29] the expenditures offsetting of course

[47:34] >> internal service funds. So for the

[47:37] vehicle maintenance, this is what

[47:38] they've requested. What we funded the tire changer, the balancer, and the

[47:42] column lifts. They requested the service

[47:45] truck and the fuel train tanks for

[47:48] 200,000. So in the internal service

[47:52] funds, um they are paid from services

[47:55] provided to all the departments. So they

[47:57] have no other revenue than what they

[47:59] charge departments we transfer back. So,

[48:01] we try to be very careful what we're

[48:04] charging to other departments because

[48:05] that's just going to raise their

[48:07] budgets. Eventually, we'd like to look

[48:08] at the field takes. Anthony really

[48:11] thinks that is a benefit to the city.

[48:13] >> We used to have that years and years

[48:15] ago. We could hedge a lot

[48:19] right now.

[48:19] >> Yeah. Especially right now.

[48:21] >> So, it requests, a main server

[48:24] replacement, extended backup, laptops,

[48:26] which would rewire and a copier.

[48:30] Um then here's both internal service

[48:32] funds. You can see the vehicle

[48:34] maintenance is 677,000

[48:36] and the IT is 928,000.

[48:40] The reason it has gone up is because we

[48:42] did fire a full-time individual instead

[48:45] of a contract.

[48:48] The revolving loan fund

[48:51] >> um

[48:53] is used to finance new equipment and

[48:55] vehicles and the cost of the equipment

[48:57] is expensed in the revolving loan fund

[48:59] and then we advertise payments to all

[49:01] the departments that get the equipment

[49:03] over three years unless it's something

[49:05] huge like when we have to pay back the

[49:07] private truck that we move to five

[49:10] years.

[49:10] >> Yeah. vehicle

[49:14] replacement is based on the assessment

[49:16] of the vehicle maintenance director.

[49:18] >> So, this is what we are proposing to

[49:21] replace this year. Um, we're going to

[49:24] watch carefully. Some of the trucks are

[49:26] not selling for as good as we got at one

[49:29] time.

[49:31] These are all leased vehicles or new

[49:35] >> These are all purchased vehicles

[49:37] >> and then and then we hold on to them for

[49:40] we hope three years and we sell them in

[49:43] the past. We've made a profit off it.

[49:45] The profit isn't quite as good as it has

[49:47] going on. Anthony has been Anony's been

[49:50] really looking at these and the numbers

[49:52] and and it still actually makes

[49:53] financial sense to purchase and sell and

[49:57] what we get even even though the number

[49:58] has gone down a little bit. Um it still

[50:01] does make financial sense from a

[50:03] maintenance and everything else.

[50:04] >> If you just break even

[50:08] are we not leasing most of our vehicles?

[50:10] I thought we were.

[50:11] >> We lease our police

[50:14] and some private vehicles. Oh, and we

[50:16] got a couple for

[50:17] >> and that's one of the reasons that

[50:19] little bit nicer trucks are bought so

[50:21] they can have a better resale market.

[50:23] >> And that's what we look at constantly is

[50:25] the lease price or the purchase price.

[50:27] That's what I was going to ask because

[50:30] again before

[50:32] when you're just a plain old resident

[50:34] driving around and you're like

[50:36] >> why do we need a high country you know

[50:39] half ton and so that's what I was going

[50:41] to ask is like because a lot of people

[50:43] ask that they want to know

[50:45] >> we can buy these on the state bid and then give us

[50:49] >> I mean I just think work white strip

[50:52] down you know and so

[50:53] >> well and it's also an image thing too

[50:55] you know for years and years we run

[50:57] around with

[50:58] >> parts fall off of them.

[51:00] >> If you buy a twodoor like proverbial

[51:03] rollup windows radio like they used to

[51:05] sell, nobody wants them when you resell

[51:07] them. So they're they don't

[51:08] >> we were making money.

[51:10] >> We made money for quite a while because

[51:12] you could buy at the state bid after a

[51:15] year or two. You could sell it more than

[51:16] we bought it for.

[51:18] >> It's it's even that way. We don't quite

[51:20] make money but we're not losing a ton.

[51:22] >> I would say as long as like we keep

[51:23] monitoring that because that would be

[51:25] something for me. I mean, we all know

[51:27] that used vehicles keep going up in

[51:29] price and I think they're going to

[51:30] continue to, but that's just something

[51:32] that

[51:32] >> Yeah, the the maintenance savings, the

[51:34] tire savings, if it makes sense in

[51:36] general

[51:38] does a real good job with that.

[51:40] >> If it gets too much of a area, then it

[51:42] might be better to do something

[51:44] different. But right now, I think we're

[51:45] still I mean, you drive it for two years

[51:48] >> and you sell it for 5,000 less than you

[51:51] bought, you you had a new truck for two

[51:53] years for $5,000.

[51:54] >> Yeah.

[51:56] and no maintenance. So I I would I would

[51:59] uh

[52:00] >> our

[52:01] >> we've had these we've had these

[52:02] arguments.

[52:02] >> I would argue that with the the citizens

[52:05] all together because we are doing really

[52:07] well with that and you explain it but it

[52:09] is a

[52:10] >> that's what I'm saying. It it is. But

[52:12] and then like is there a is there I

[52:16] don't want to say rule but is there like

[52:17] a procedure of like

[52:19] >> they have to keep their trucks you know

[52:21] nice inside and not just like trash them

[52:23] because again you go back to work

[52:25] trucks.

[52:25] >> We do monthly inspections on ours.

[52:27] >> Okay. So do all departments kind of do

[52:29] that or

[52:30] >> we wash.

[52:32] >> Okay. I was just curious cuz

[52:34] >> yeah you know a larat sell way better

[52:37] than an XL.

[52:38] >> Oh for sure. I know.

[52:40] >> There was times we were making 9 and

[52:42] 12,000 on top of what we paid for it.

[52:45] >> It's not that I wish those

[52:47] >> I wish those days are still here.

[52:48] >> Yeah. I mean, sometimes we're like,

[52:50] 1500, sometimes we're 3,500, but and

[52:52] sometimes we have lost a little bit

[52:55] before too as well. But I think in the

[52:57] end

[52:58] of life,

[52:59] >> remember that.

[53:01] >> Now, I just I just want to point out

[53:03] Scott was talking about the ladder track

[53:05] and the brush track. On the latter front

[53:08] particularly, um

[53:12] what we were talking about is maybe it

[53:14] would be more prudent to go out and seek

[53:16] out outside leasing options because we

[53:19] just cannot fund a $2.3 million vehicle

[53:22] right now.

[53:23] >> It's it's a big vehicle even in the

[53:25] home.

[53:26] >> We paid those back in

[53:29] those rusted falling apart.

[53:31] >> Yeah.

[53:32] I spoke to several financial

[53:35] institutions that were down at the

[53:36] league conference as well kind of about

[53:38] that and and they have they've been

[53:40] helping several communities with that

[53:42] specific

[53:43] >> you know situation to say this is a very expensive vehicle and so they

[53:50] they've been working on some creative

[53:52] funding ways to to do those. So we'll

[53:55] continue

[53:57] paying ourselves interest on

[53:59] >> three and a half weeks. on the ladder

[54:03] truck. Could you use impact fees because

[54:05] it is growth of the big building

[54:08] >> only commercial only commercial?

[54:10] >> We need to get that law change back only

[54:13] commercial.

[54:14] >> We just don't respond on residential

[54:15] fires anymore.

[54:22] » I agree.

[54:23] >> To give you an idea how much it's gone

[54:24] up, when we bought our last ladder

[54:26] aerial truck um in 2002, we paid

[54:29] 284,000. There need to be some more

[54:31] competition injected into that market.

[54:34] >> Brian and I are going to open a

[54:35] manufacturing

[54:37] ladder four years today.

[54:40] >> It'll be four years.

[54:41] >> What do they manufacture those?

[54:43] >> There's several. Um the one the ones we

[54:45] buy in Nebraska.

[54:47] >> I think these several I'll call each

[54:49] other and say, "Hey, what you selling

[54:50] them for this year?"

[54:52] >> How much you bet?

[54:56] >> Yes. Um we if we pay up front they'll

[54:58] give a discount.

[54:59] >> But how much do you have?

[55:08] » Four years.

[55:10] >> Could we order two and then resell the

[55:12] other one?

[55:19] » Never be used.

[55:24] » We get We have paper. pick it up. But

[55:26] that's it.

[55:27] >> I don't know why we figured out

[55:35] the price they give us. That's the

[55:37] price.

[55:40] Why would you order

[55:45] money?

[55:46] >> Yeah.

[55:47] >> Someone's got to get in on this market.

[55:52] Kathy will tell you why. Once once you

[55:54] order it, it goes into our budget.

[55:57] >> The funds,

[56:03] » you need another golf tournament.

[56:06] >> Can you increase some golfing?

[56:08] >> Tomato tomatoes.

[56:12] » So, for the revolving loan fund, we're

[56:15] spending $2.4 million on those vehicles.

[56:18] >> Okay.

[56:19] >> Um park tax. We just got this this

[56:22] morning. Emily put this together for me.

[56:23] This is what was awarded or been being

[56:26] proposed to be awarded.

[56:28] Um you can kind of see it's $410,300

[56:34] worth of um projects. I put in an

[56:37] additional $10,000 on top of that.

[56:41] Sorry. Um for advertising for the park

[56:44] tax because we can put out a procon

[56:48] um letter. So we wanted to make sure

[56:50] there was some funding for that

[56:52] >> and the committee will hear that next

[56:54] Wednesday.

[56:57] >> Great. So here's the over overview of

[57:00] the car tax fund.

[57:02] >> The general fund

[57:05] uh sales tax is steady right now. Um

[57:07] building permits revenue is down. We

[57:09] showed about 15% granted through this

[57:11] year to March. Um, in previous years

[57:14] we've transferred excess fund balance

[57:16] from the utility fund to the capital

[57:18] fund. We're going to do that again and I

[57:20] don't want anybody to panic when they

[57:21] see it. We're not expending it even

[57:23] though we have to expend it in one fund.

[57:25] The other fund recognizes it the revenue

[57:28] there. So, um, again, we'll be

[57:31] transferring funds. Um, then that will

[57:34] be roughly equivalent. And I just wanted

[57:36] to kind of illustrate that if you look

[57:38] at the original budget from 2026, we

[57:41] split it between the general fund and

[57:42] the utility fund because we've

[57:44] transferred everything from the utility

[57:46] fund. It doesn't have fund reserves.

[57:48] We're going to transfer the full amount

[57:49] from the so it kind of distorts

[57:54] um the use of fund reserves.

[57:58] So the general fund is comprised of all

[58:00] these funds that roll up. All these

[58:02] little funds roll up and you'll see that

[58:03] in the audit.

[58:06] Um, this is what's being requested in

[58:08] the general fund, the BNC fund, and what

[58:11] has not been funded yet, the building

[58:14] maintenance fund. Again, we might have

[58:16] to transfer money to pay for that HVAC

[58:18] system, the engineering department,

[58:23] uh, the parks,

[58:25] the fire department,

[58:27] the library.

[58:28] >> Does that park needs to be yellow,

[58:31] doesn't it?

[58:33] I thought they were supposed to be red.

[58:37] >> That's true.

[58:40] » Yellow ones are cheaply

[58:45] police department,

[58:47] >> the pool, the senior citizens, the

[58:51] cemetery, and the 58

[58:54] replacement where,

[58:56] >> pardon me,

[58:57] >> carpet replacement on the seniors. He

[58:59] said where? In the senior center. And we

[59:01] just barely replaced the carpet.

[59:04] >> This is in their actual office area.

[59:08] >> We can't drop them on.

[59:09] >> Are we are we not furthering the

[59:11] discussion of Wilson moving them to

[59:14] Wilson?

[59:16] >> Yeah, that's one of the items I think.

[59:18] Um

[59:19] >> I just wonder if we you know replace the

[59:21] carpet if we're going to be you know

[59:23] putting you know walls maybe signing the

[59:26] police department that

[59:28] >> Yeah.

[59:28] Could be. Yeah. We can float that.

[59:33] >> We're still going to use the bank hall.

[59:38] » This is for the others. Most of this is

[59:39] through the Eldrich grant as well. The

[59:41] money's there. So, we can float it and

[59:43] we see how our progress goes on

[59:45] >> or you could use this towards Wilson.

[59:47] >> So, we can use it towards Wilson in the

[59:48] future. Right. Exactly.

[59:50] >> Yeah.

[59:50] >> So, so they do now that they did

[59:52] announce as well that was all in this

[59:54] process. So,

[59:55] >> have we given nebo a date of when we

[59:57] want to take over the building or not

[59:59] yet? They they're gonna exit it next

[1:00:01] June.

[1:00:02] >> June 2027 school year. Okay. One more

[1:00:05] school year.

[1:00:07] >> Then we'll need an increase in budget

[1:00:11] obviously to revamp and redo

[1:00:15] >> do certain things depending on how much

[1:00:16] we do there.

[1:00:17] >> Yeah.

[1:00:18] >> Let's keep that in mind as we go through

[1:00:19] this year.

[1:00:20] >> Right.

[1:00:21] >> And in future I mean we should put the

[1:00:22] library there

[1:00:24] >> and that's one of the options. Yeah.

[1:00:28] So, the general fund is a $32 million

[1:00:30] fund and that includes all the little

[1:00:32] tiny funds. They're not little tiny but

[1:00:35] smaller funds that roll up into the

[1:00:37] general fund. And you'll see more detail

[1:00:41] in your budget document, but here's the

[1:00:42] breakdown of all the expenditures for

[1:00:44] all the departments that roll into that.

[1:00:48] The redevelopment agencies, um, we have

[1:00:51] two. The first one is the town. mainly

[1:00:54] we use that to pay the Walgreens uh

[1:00:57] reimbursement and that'll be paid off in

[1:00:59] October 2028

[1:01:01] and then the business park one is the

[1:01:03] innovation center and we also received

[1:01:05] some sales that

[1:01:09] >> on the RDA fund for the business park

[1:01:14] are we getting money back from um from

[1:01:18] the ball fields as Woodenberry sells

[1:01:20] property we're supposed to be getting I

[1:01:22] think

[1:01:22] >> we're supposed to I I don't I haven't

[1:01:26] >> about 83. How much Nathan was quite

[1:01:31] >> 60ome.

[1:01:33] >> Well, that might be coming back quite a

[1:01:35] bit this year.

[1:01:37] >> It will be.

[1:01:39] >> And are we starting to get more revenue

[1:01:41] from the the gravel pit above the

[1:01:43] landfill yet? Is that has that

[1:01:46] >> that deal with Kenny saying uh reached

[1:01:49] >> it balance point?

[1:01:50] >> It has a little bit more trouble.

[1:01:51] >> A little bit more. Yeah, I I looked at

[1:01:54] the last um analysis and it gosh, how

[1:01:58] much? Three.

[1:02:00] >> Yeah, they're still they they gave us

[1:02:02] credit because they did the ball field

[1:02:04] and the other things and then as soon as

[1:02:05] that's paid back, they start paying

[1:02:07] royalties again,

[1:02:08] >> right?

[1:02:11] » The scale was agreement.

[1:02:13] >> Yeah. Just one thing to make you aware

[1:02:15] of. We we had a meeting with Kenny Sang

[1:02:17] and and Gary Nelson, the CEO,

[1:02:20] uh two days ago. Kenny Sang has um sold

[1:02:26] that his business

[1:02:28] >> to Granite Construction. Oh,

[1:02:33] >> we're still figuring out I mean the

[1:02:35] contract's going to go on with signed to

[1:02:37] whoever, but if it's they might keep that subsidiary, Kenny

[1:02:42] Sank Construction, but it's it might say

[1:02:45] Kenny Sank Construction subsidiary

[1:02:48] construction.

[1:02:49] Um I don't think it's going to make any

[1:02:52] difference. We we still have the the

[1:02:55] agreement. We still get the royalties.

[1:02:56] We get everything, but

[1:02:57] >> it's new management. So,

[1:03:00] >> I'm just excited for that balance to

[1:03:02] balance out so we can start getting that revenue because there's a lot of

[1:03:05] gravel trucks come out of there.

[1:03:07] >> The other thing and Kenny saying Kenny

[1:03:09] said that they have been slower this

[1:03:11] year. Yeah.

[1:03:11] >> A lot of their projects have been up

[1:03:13] north,

[1:03:14] >> but it's kind of bouncing out again.

[1:03:15] There's that they've got the park area

[1:03:17] in Salem. There's different projects

[1:03:20] down here. So, it will pick up.

[1:03:21] >> Well, when they do I-15, it will

[1:03:24] >> be rolling down. That's why we got the

[1:03:26] scales a few years ago because they're certified for UD do projects.

[1:03:30] >> The other thing we need to get changed

[1:03:31] is that they know gets all the sales

[1:03:35] tax. That's where his home his home

[1:03:37] office is. That's where we bail it out

[1:03:39] of. We need to get that changed. It's

[1:03:40] different for CNN plans.

[1:03:42] >> And I I talked to this tax commission

[1:03:44] today. We're going to have a a guy get

[1:03:46] on our next economic development board

[1:03:47] and talk about things like that. I

[1:03:49] talked to him about about the taxes for

[1:03:53] gravel and he said there is sales tax

[1:03:56] but he said a lot of the projects that

[1:03:58] come out of gravel pits are not taxed

[1:04:00] >> because you do u dot's tax exempt

[1:04:03] schools are tax exempt these big

[1:04:04] projects that use a lot of the federal

[1:04:06] highways tax exempt so he said it's not

[1:04:09] as much as you think you're going to get

[1:04:10] >> well still a good amount are though

[1:04:12] taxed the privates and and whatever we

[1:04:15] do to actually help literally the road

[1:04:17] situation I understand. I'm just saying

[1:04:19] that it's it's if we get all that gravel

[1:04:22] that goes out, we're not going to get

[1:04:23] revenue on all that.

[1:04:25] >> And and if they're UD do projects or

[1:04:27] school projects, which a lot of those

[1:04:28] are,

[1:04:29] >> we won't get it. We'll get some if if we

[1:04:32] can get that law change that it comes be

[1:04:35] a huge help to where it is, not where

[1:04:36] their offices are.

[1:04:38] >> Well, we are going to try to pick the

[1:04:40] brain of the tax commission at our next

[1:04:42] meeting.

[1:04:43] >> Several things. You get all the traffic,

[1:04:46] dust, road deterioration, and noville

[1:04:48] benefits. So, we need to get that

[1:04:50] changed

[1:04:51] >> cracks.

[1:04:53] >> Oh, sorry. I should have mentioned that

[1:04:56] we did put in $100,000 in landscaping

[1:04:58] for the RDA business park.

[1:05:00] >> Are we going to do entrance signs to the

[1:05:02] business park that landscaping?

[1:05:05] was going to be like we

[1:05:06] had central Utah water help us uh design

[1:05:11] a a garden landscaping garden

[1:05:15] >> down at we'd like to get that put in but

[1:05:17] there's there's money there to do signs

[1:05:18] as well

[1:05:19] >> I think we have to put some get the

[1:05:20] signs down we talked about for long time

[1:05:23] >> and just for the just for the council on

[1:05:25] these RDAs we we have we have no RDAs

[1:05:28] that are still functioning these RDAs

[1:05:31] ended several several years ago but

[1:05:33] there have been revenue still in there.

[1:05:35] That's what

[1:05:35] >> And now you can't do certain uh

[1:05:39] >> they're they're harder to get CRA. You

[1:05:41] have to get permit. You have to get

[1:05:42] approval of the school districts and

[1:05:44] stuff like that. So, we still we still

[1:05:47] budget for this. We have to deal with

[1:05:49] this, but we're not getting any more

[1:05:50] revenue into those RDAs except the EDA,

[1:05:54] the business park when like we sell a

[1:05:56] piece of property

[1:05:57] >> that's in the name of the RDA, it goes

[1:05:59] into that fund. But we're not giving tax

[1:06:01] increment like we used to. They they

[1:06:03] ended quite quite some time ago.

[1:06:05] >> One thing we haven't put in this budget

[1:06:06] yet is the inland port. We will start

[1:06:08] getting money in November

[1:06:11] 400 probably dece.

[1:06:28] » So just some items are coming soon. Of

[1:06:30] course, the Whiffy bonding and the

[1:06:32] projects will bring those forward. Um,

[1:06:35] $5 million sewer bonds that's coming

[1:06:36] next Wednesday. Um, the dog park uh with

[1:06:40] the meat packing plant demolition.

[1:06:43] Wilson school within one year remodel.

[1:06:46] Um, admin remodel for police if it's

[1:06:49] allowed or seismic requirements or

[1:06:51] possible land purchase for new police

[1:06:54] station.

[1:06:54] >> So, are the bay land purchase? Um, the

[1:06:58] dog part and meat packing. Are those on

[1:06:59] the same line for a reason?

[1:07:01] >> It's the same place

[1:07:03] >> where the old

[1:07:05] >> and

[1:07:06] >> I guess I hadn't heard anything further

[1:07:08] from that. So, that's I was just going

[1:07:09] to ask like

[1:07:10] >> I feel like it's much better to put a

[1:07:12] dog park in a new subdivision rather

[1:07:14] than in the existing subdivision.

[1:07:16] >> Yeah. And it doesn't have to go there. I

[1:07:17] know there's been discussion about

[1:07:18] putting uh some storage. Well, I think

[1:07:21] storage sheds we get a lot more mileage

[1:07:23] out of where it makes

[1:07:25] >> I I I know that if we tried to put a dog

[1:07:28] park there there one very substantial

[1:07:33] >> well then then we'd have the the pig

[1:07:35] slaughter house next door to the dog

[1:07:36] park that's just too much for the

[1:07:38] >> well across the street from Kitty Corner

[1:07:41] from the meat slaughter house there's

[1:07:42] already a dog park called the ball

[1:07:44] fields

[1:07:46] nonstop

[1:07:47] >> you are in our wellhead protection zone

[1:07:50] where that site is. So, it's about the

[1:07:52] best place.

[1:07:53] >> Yeah. I don't think

[1:07:56] >> Yeah, I just think that could be that space there next to our PI pond

[1:08:00] could be used for much more advantageous

[1:08:02] means for the city and the residents

[1:08:03] that

[1:08:03] >> I thought it'd be a good pond that they

[1:08:05] could jump in and the dog.

[1:08:07] >> Yeah, we could really justify those all

[1:08:10] the EMPs.

[1:08:11] >> I said if we're holding we could have

[1:08:13] doggy Olympics. That's right.

[1:08:15] >> But I I think I think we're bursting the

[1:08:17] seams for storage for all the

[1:08:19] departments. They didn't put the storage

[1:08:20] sheds down there. Or hey, let's just

[1:08:22] repaint the Dixon meat building with

[1:08:23] some

[1:08:27] » Yeah, that that's not fun.

[1:08:30] >> Is that correct?

[1:08:32] >> The what?

[1:08:33] >> The the demolition of the

[1:08:35] >> the last budget adjustment. We put some

[1:08:36] money in there, didn't we?

[1:08:37] >> Did we did that include the asbestous

[1:08:40] mitigation?

[1:08:41] >> Yes.

[1:08:42] >> Yeah.

[1:08:43] >> I I think that needs to come down as

[1:08:45] soon as possible. The only reason it's

[1:08:46] not down, I wish it was down because I I

[1:08:48] was promised by he's not here. I get to

[1:08:52] take the first swing with the track, but

[1:08:55] the only reason it's not down is because

[1:08:56] of that that

[1:08:58] >> asbestous mitigation

[1:09:00] >> and we we had no idea there was

[1:09:02] asbestous. That building was built so

[1:09:04] many years ago. But

[1:09:05] >> you have to follow it. It's expensive. I

[1:09:08] mean, $40,000 to make mediate before you

[1:09:12] tear it down is just crazy to me. That's

[1:09:14] such an old

[1:09:16] >> building actually

[1:09:19] get down the sooner we take that down.

[1:09:23] >> The other thing just on this is that 5

[1:09:25] million sewer bond there's a parameter

[1:09:27] resolution that will come to the

[1:09:28] council.

[1:09:29] >> It's when we did a parameters resolution

[1:09:32] before we started this sewer bond the

[1:09:35] council approved up to 70 million. I

[1:09:37] think Bob was on the council.

[1:09:39] >> This five is not in addition to the 70

[1:09:41] million. this will get us to the 70

[1:09:43] million, but the bond council said since

[1:09:46] it's been so long since that parameters

[1:09:47] resolution, we have to do a new one. I I

[1:09:49] didn't feel like we had to do a new one

[1:09:51] because we already had approval from the

[1:09:52] council, but because of the time lapse,

[1:09:54] they're saying we got to go back to that

[1:09:56] additional 5 million even though it's

[1:09:58] within the number the council approved

[1:10:01] three years ago or

[1:10:02] >> it started out at 65 and they approved

[1:10:04] it up to 70.

[1:10:05] >> The council approved the the cap at 70

[1:10:08] million. We kept it. We didn't think

[1:10:10] we'd ever get to that high, did we?

[1:10:13] >> But then we started hearing the horror

[1:10:14] stories of Logan and Provo and Spanish

[1:10:17] Pork. Spanish Pork budgeted 76 and they

[1:10:21] ended up at one 109.

[1:10:24] >> They're 110. Provo's up to like 160

[1:10:27] million.

[1:10:29] >> Somebody's making a lot of money through

[1:10:30] this co everything blamed on CO.

[1:10:33] >> But just so you know, it's not something

[1:10:35] we're asking more than the 70 million.

[1:10:38] But but we have to do the rest of

[1:10:39] >> something we got we got to do.

[1:10:42] >> Yeah, we're going to have to use that to

[1:10:43] finish up the plant by the end of the

[1:10:44] year.

[1:10:47] >> But some good news is we actually

[1:10:49] because of the bonds we already took out

[1:10:51] that we actually gained a lot of

[1:10:53] interest with them sitting there. So we

[1:10:56] paid millions in payments through that

[1:10:58] interest.

[1:11:00] >> Very good.

[1:11:00] >> The other thing we might have to deal

[1:11:01] with the arbitrage and it depends on how

[1:11:04] fast we spend it. that that's when you

[1:11:06] have tax exempt bonds. If you hold it

[1:11:08] and you make so much interest,

[1:11:10] >> you have to go through an arbitrage

[1:11:11] calculation. And if you've made too much

[1:11:12] interest, you have to pay some of that

[1:11:14] back.

[1:11:15] >> The IRS to

[1:11:17] >> we want to spend it quick enough. We

[1:11:19] have made some good interest to help the

[1:11:20] bond payments, but we might have to I

[1:11:23] mean, we're doing a calculation right

[1:11:24] now on on that. We might have to owe a

[1:11:26] little bit, but it's not near what we gained.

[1:11:31] >> It's pretty smart.

[1:11:33] >> There's one more thing. It's not

[1:11:34] budgetary that's coming down the pike

[1:11:36] because we might have to adjust the the

[1:11:38] pit agreement red bridge.

[1:11:41] >> So that will be coming the state

[1:11:43] auditors

[1:11:45] interpreting the pit legislation

[1:11:47] different than we have

[1:11:48] >> and so

[1:11:49] >> the news has got hold of that lately

[1:11:51] >> have they they're beating it up.

[1:11:54] >> Yeah. What what

[1:11:56] >> what what the argument is is we've u

[1:12:00] when we do a pit the council has to

[1:12:02] approve the initial pit.

[1:12:04] even though we're not part of the board,

[1:12:06] we're not part of the organization

[1:12:08] and and they're a standalone. They don't

[1:12:10] have to come to us for,

[1:12:13] you know, to expend money and stuff like

[1:12:14] that. But since the pits have been

[1:12:18] created, uh there's one in Castle,

[1:12:21] >> Coleville

[1:12:21] >> or Coleville, there's one in Coville and

[1:12:23] one in Ivans or Santa Clara that have

[1:12:27] gone bankrupt.

[1:12:28] And so the state auditor position is you

[1:12:31] guys created it. It needs to be added to

[1:12:33] your financials as a component unit at

[1:12:35] the city. And we're fighting that and

[1:12:38] the cities are fighting that and the

[1:12:39] leagues helped fight that. But the state

[1:12:41] auditors just nope.

[1:12:44] >> And we don't even want to go there

[1:12:46] because they said it's not going to cost

[1:12:47] you anything. But once you get the nose

[1:12:50] of the camel, it's it's a component unit

[1:12:51] and they go bankrupt and they're going

[1:12:53] to come to the city.

[1:12:54] >> Well, you have to recognize that.

[1:12:55] >> You have to recognize the debt,

[1:12:56] >> the liability and the debt. And that was

[1:12:59] something that's not even anticipated in

[1:13:02] the original

[1:13:03] >> our our bond attorneys that helped with

[1:13:05] that. They're they're going to propose

[1:13:07] some language to go back and amend our pit agreement and put some language

[1:13:11] in so that it's not anything moving

[1:13:13] forward. But it it's been a battle.

[1:13:15] There have been several long meetings on

[1:13:18] Zoom with the state auditor's office and

[1:13:22] legislators and a lot of cities trying

[1:13:24] to figure out why is the state auditor doing this?

[1:13:29] >> Well, good hell that that Utah state set

[1:13:32] the parameters. I mean, they allowed

[1:13:33] this to do it. Well, in the state of

[1:13:36] Utah past saying it's not that way, but

[1:13:38] the state auditor position right now is

[1:13:41] um they follow Gazsby, the government I

[1:13:45] don't know what it stands for, Gabby.

[1:13:46] >> Governmental law accounting standards

[1:13:48] board.

[1:13:48] >> Yeah,

[1:13:49] >> that's that's a standard that that the

[1:13:52] auditors supposed to look to when they

[1:13:54] audit governmental entities and they're

[1:13:56] saying we have to abide by that even

[1:13:58] though the state hasn't adopted Gazsby

[1:14:00] and the states has other laws, but

[1:14:02] they're saying no Gatsby trumps. So

[1:14:04] there's been a little battle with the

[1:14:07] legislators, the legislators that are against that and then the state

[1:14:12] order. So it's it's been a battle.

[1:14:13] >> So was it the city agreed to it and then

[1:14:16] they're saying that the city council was

[1:14:18] supposed to agree to it? Am I

[1:14:19] understand?

[1:14:20] >> No, they're explain that. Sorry. They're

[1:14:22] saying that they're a component unit

[1:14:23] because we exercise

[1:14:26] um control through having them do

[1:14:29] reports and according to the appointing

[1:14:33] to their board. Even though we don't do

[1:14:35] that,

[1:14:37] the state auditor is saying because of

[1:14:38] the structure of the pit that it is a

[1:14:42] component unit and we're fighting that

[1:14:43] saying no, we've never done these things

[1:14:45] and we don't exercise control. What the

[1:14:49] watchd dogs are saying right now on the

[1:14:51] news is that there is not an elected

[1:14:54] body that is controlling the funds that

[1:14:57] it's just

[1:14:59] a construction the other day about a

[1:15:01] develop.

[1:15:10] » Yeah, I was like I thought that's what

[1:15:11] they wanted.

[1:15:12] >> That that's what the legislator wanted.

[1:15:15] They wanted basically they wanted the

[1:15:17] city to create it so you could have that

[1:15:19] public

[1:15:20] >> infrastructure district so you could

[1:15:22] have the public part of it access the

[1:15:24] public bond market.

[1:15:25] >> You go back and read the minutes we

[1:15:27] approved it. I think it was several

[1:15:30] council members that were saying as long

[1:15:32] as it doesn't have anything to come back

[1:15:33] on the city

[1:15:35] >> and then now

[1:15:36] >> well that's the way the legislature sold

[1:15:37] it when they created the law. It's like

[1:15:39] they can have access to to governmental

[1:15:42] bonding

[1:15:43] >> because it's a public infrastructure

[1:15:45] district but

[1:15:47] >> but cities you're not liable in any way.

[1:15:50] You just have to create it because

[1:15:51] that's what the state law said we had to

[1:15:52] do and then they're on their own.

[1:15:54] >> So you think this will end up in court

[1:15:56] then? I think it's going to have to.

[1:15:59] >> I think I think she has immunity though.

[1:16:01] I mean, she's government entity and

[1:16:02] they're saying that the attorney general

[1:16:04] defends her. So, but the attorney

[1:16:08] general also defends the other

[1:16:11] legislation. So,

[1:16:13] >> so I think her her real her argument is

[1:16:16] that the pit is creating a public

[1:16:19] benefit from the infrastructure, but by

[1:16:21] the time we get that and it's dedicated

[1:16:23] to us, it's a liability.

[1:16:24] >> We have to take care of it.

[1:16:28] So Kathy, I say this is coming soon. Are

[1:16:30] you anticipating these things will be

[1:16:33] included in the budget?

[1:16:34] >> They're not in the budget now, but

[1:16:36] you're anticipating that when the Canada

[1:16:38] budget goes or when the budget's adopted

[1:16:40] just in case.

[1:16:40] >> Well, I don't even know when the

[1:16:41] budget's adopted. I just wanted to

[1:16:44] >> to put it on the radar that we will be

[1:16:47] having to face some of these things or

[1:16:48] address some of these things.

[1:16:49] >> It may not be the next budget year.

[1:16:54] » You were town, Bob. property property

[1:16:57] around

[1:17:01] » which I think we give it to Tracy and he

[1:17:03] opens another RV park

[1:17:04] >> boom

[1:17:05] >> and expanding

[1:17:11] take it back. I give it to Carl.

[1:17:14] >> Carl got the whole damn mountain.

[1:17:24] » Sorry.

[1:17:25] >> If we put that part forward, we could

[1:17:27] get a grant to pay for all that. We

[1:17:29] didn't have to pay for it. That's our

[1:17:30] hope.

[1:17:31] >> That's our land.

[1:17:33] >> The the owners came to him and ask

[1:17:35] >> to do the what?

[1:17:36] >> Find that land. We do land

[1:17:40] from the federal government

[1:17:43] dollar sign.

[1:17:48] » I reached out to the one and say how

[1:17:50] much would you sell it for?

[1:17:52] So just as a reminder when you adoptive

[1:17:55] budget

[1:18:02] » so when you adopt the tenative budget

[1:18:04] you must set the time de date in place

[1:18:06] for transfers salary increases public

[1:18:09] hearings budget adoption and certified

[1:18:11] tax rate and we've tenatively scheduled

[1:18:14] the budget adoption for June 17th at 6

[1:18:17] o'clock. We're hoping we have the CTR by

[1:18:21] then. Sometimes it comes in a little bit

[1:18:22] later, but we're hoping that they work

[1:18:24] with us and we'll have that available

[1:18:26] for us for both.

[1:18:28] >> Do we need to hold the truth in taxation

[1:18:29] before that?

[1:18:31] >> No, because we're not doing. So, really

[1:18:33] the survey tax rates what it is, right?

[1:18:35] I mean, we we won't need that to make a

[1:18:37] adopt the budget.

[1:18:38] >> Okay.

[1:18:39] >> It's whatever it is.

[1:18:40] >> Okay.

[1:18:41] >> But it be nice for us to know if we

[1:18:44] projected revenues correctly.

[1:18:45] >> Yeah. So, that's all we've got for

[1:18:47] tonight.

[1:18:48] >> That's it.

[1:18:55] » Is there any other questions or concerns

[1:18:57] or thoughts?

[1:18:58] >> They'll come.

[1:18:59] >> And and between like next

[1:19:01] >> Yeah. Let us sleep.

[1:19:02] >> Yeah. Next Wednesday we adopt the

[1:19:04] tenative budget and then we've got till

[1:19:06] June. So, we got a little over a month

[1:19:08] we can have more of these meetings. We

[1:19:10] can have individual meetings. We can

[1:19:11] talk about any budget and if we want to

[1:19:14] change or adopt or put anything else in

[1:19:16] there, take things out, we're sure

[1:19:18] willing to listen.

[1:19:19] >> No, I have one.

[1:19:26] » Thank you. Everybody, staff, everybody,

[1:19:29] >> do we need to adjourn?

[1:19:31] >> Y

[1:19:33] motion to adjurnn.

[1:19:34] >> I move that we journ.

[1:19:36] >> Second. All in favor say I.

04 29 2026 CCWS Video

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