us for the city council workshop meeting for   May 27th May we please stand  for the pledge of allegiance that I pledge algiance to the flag of  the United States of America and to the   republic for which it stands One nation under  God indivisible with liberty and justice for all Thank you all I call this meeting to order  Madame clerk can you please call the first item approve the minutes of the regular meeting  May 20th 2025 Are there any corrections to   those minutes i see none I move to approve  the regular meeting minutes for May 20th   2025 Second Motion and a second Any further  discussion i see none All those in favor say   I I All those opposed same sign Motion passes  70 Madame clerk please call the next item public agenda Uh the public agenda um I'm sorry I forgot to bring the the public  agenda No no action will be taken relative to   the items on the other on the agenda other than  the referral to the city manager for information   Requests will be placed on the agenda on a  first come first- serve basis Each speaker   will be allowed five minutes to speak Um there  will be a timer on the wall uh displaying the   amount of time There will be allowed up to  five speakers We do not have any scheduled   public agenda members this morning Would anyone  in the audience like to address the council i see   none We will move on from public agenda Madame  clerk please call the next item Consent agenda   items 1 through 31 Council members are  there any items to be pulled for further discussion i have one consent agenda item number 16 It's both 16 and 17 It's the same similar  item It's the homeless care coordination team Excuse me mayor Before we get to that one did  you want to make the motion to approve the other   items i will I just wanted to see if there's  any other items So 16 and 17 I am pulling but   I'll discuss them as one item and then pass them  individually I see none other So I will move to   approve the consent agenda without number 16  and 17 Second motion and a second Any further   discussion i see none All those in favor say I I  All those opposed same sign Motion passes 70 We   will go in numerical order Starting with item  16 I'd like to know uh if someone can explain   how this homeless care coordination team is being  run Um this will now be funded by liquor tax sales   uh if we can have information regarding this team  please Sure Um my name is Steve for the record I   am the assistant director of the department of  housing and community services This is a project   that has been ongoing and has been funded by  liquor tax um in the care coordination teams   for about three years and two years And this  is a budget revision item to allow the care   coordination team to add another person in order  to complete the spending The project is being   managed by the department of housing and community  services And these individuals walk alongside our   uh social work interns our case managers and our  housing navigators in order to assist those who   are experiencing homelessness to get housed  How is this uh working in collaboration with   the police department's homeless outreach  team the homeless outreach team is a member   of our community's uh street outreach part  of our care coordination teams part of our   uh uh everything that we do working  with those experiencing homelessness   I have had a lot of questions from community  members regarding um our encampment ordinance   as well as um the challenge regarding homelessness  So I wanted to see how item number 16 and 17 both   help individuals who are facing homelessness  um get connected to not just the sheltering   services that the city has invested in  but also other opportunities for housing   the care coordination teams in the department of  housing and community services They participate   in coordinated street outreach They participate  in the coalition to end homelessness in Witchah   Cedric County They go to case conferencing They  meet the individuals who are on the streets who   are in encampments and identify housing resources  for those individuals Each care coordination team   is made up of a housing navigator um who is a  case manager a social work intern a peer recovery   specialist in order to properly identify and be  able to engage and work with those individuals in   identifying housing resource Couple more  questions I know that uh earlier this year   in January there was a homeless uh point in  time count um and last year the number was 691   The year before that was 702 So there was a  reduction in the number When will we get the 2025   numbers having been responsible for those numbers  in the past I can tell you historically the   numbers are difficult to calculate Prior to HUD  opening up the portal which does its own math So   the numbers are sitting at the United Way of the  Plains with the HMS administrator and she is busy   uh the HMS administrator who took over for me is  currently entering that data now We expect that   she's probably going to finalize that and submit  it by June 13th and then there is a period of time   in which HUD has the right to accept deny or ask  questions So the United Way of the planes may wait   until after June 13th and they may then again wait  until they hear back from HUD that those numbers   are accepted or not So there will be a delay then  in numbers because I know that in previous years   by June 1st we would already know those numbers  Um I believe last year we took a little bit of   a risk and we published them uh early because  we felt like we were um solid with our numbers   and that was after we'd already submitted them  to HUD which did happen earlier last year There   was a delay in HUD opening the portal and the  deadline for entering the data is June 13th Thank you very much Steve  Any further questions for   staff i see none We will now open it up for public comment I see none I'll bring it back to the  bench Uh before I move this item I just want   to make sure that again this coordination team uh  has greater communication and collaboration with   the police department's uh homeless outreach  team as they are going out into community   uh interacting and interfacing with individuals  facing homelessness I will move to approve   consent agenda item number 16 Second motion and  a second Any further discussion i see none All   those in favor say I I All those opposed same  sign Motion passes 70 For item number 17 a lot   of the questions I had already asked And again um  I know that this is an increase in the salary or   the hourly pay for these individuals Can you uh  explain again what it was previously and what it   is now the original contract um suggested that  they were to pay the peer recovery specialists   $10.50 50 cents an hour and there were three  of them that they were to hire and then over   time they were only able to give us one because  they were unable to find additional peer recovery   specialists and this is by their story at  that wage So they believed that they would   be able to increase to the three that they'd  originally promised if they could increase the   uh wage to $14 an hour However that required  uh city council approval to make that change   in the contract And Steve uh these positions since  they are peer uh positions these are individuals   who've have faced homelessness before Can you  tell us a little bit about the criteria of whom   you're looking for yes we're specifically looking  with for individuals with lived experience and   that could be substance abuse mental health and  homelessness Although they are often all three but   specifically the ability for somebody who has been  in their shoes really assists in the engagement   process with somebody out in the community  in order to communicate them and convince   them that housing is something they may actually  want to pursue And can you also explain this is a   contract with the individuals across the street  from the now called Second Light campus Is that   correct correct This is a contract with Episcopal  Services uh DBA Breakthrough Thank you very much   You're welcome I see no further questions We  will now open it up for public comment I see   none I'll bring it back I will move to approve  consent agenda item number 17 Second motion and   a second Any further discussion i see none All  those in favor say I I All those opposed same   sign Motion passes 70 Madame clerk please call  the next item Petitions for public improvements Good morning mayor city council members  Paul Gunsman public works and utilities   For the record I have one revised petition  location for you this morning Signatures on   the petitions represent 100% of the improvement  districts and the petitions are valid per Kansas   statute Buffalo Pines edition located in district  2 On January 16th 2024 the city council approved   paving improvements required for a new residential  development The developer has submitted revised   petitions with revised budgets to meet current  market conditions It is recommended that the city   council approve the revised petitions and budgets  adopt the amending resolutions and authorize the   necessary signatures And as a reminder these will  be paid for by special assessment That I'll stand   for questions Thank you Paul Questions for staff  um I have just one If you go back to slide number   four this revised budget now has increased  by um a quarter of a million dollars Can you   share if construction costs have continued to rise  obviously but um are you going to be seeing more   of these revisions they they have been rising  and and this petition was you know it's almost   uh 18 months old now Um I am planning to meet  with the platting engineers um here in the next   few weeks to discuss some of these items as we  have seen you know revised petitions come back   as well as some of the overestimates on the bids  So we are meeting with them to kind of get their   thoughts on some things Thank you Paul I see no  further questions for staff and this does not   get public comment So I will move to approve the  public improvements petitions Second motion and   a second Any further discussion i see none All  those in favor say I I All those opposed same   sign Motion passes 70 Madame clerk please call  the next item approved that pursuant to section   204090 Council Member Johnson's travel expenses  as estimated on the travel authorization and   expense form to attend the multif family housing  conference in Dallas Texas on October 21st through   24th 2025 for the purpose of representing the city  of Witchah consistent with AR 3.1 be approved Upon   approve upon return from travel actual expenses  shall be reported to the controllers's office I will just add that a couple of weeks ago we  asked staff to now put all travel whether paid   for by the city or paid for by another  entity to be put online It is available   on witchah.gov/city councsil I will approve  the travel for council member Johnson Second   Motion and a second Any further discussion i  see none All those in favor say I I All those   opposed same sign Motion passes 70 Madame clerk  please call the next item Approve that pursuant   to section 204090 Mayor Woos travel expenses  as estimated on the travel authorization and   expense form to attend the city to city in  Detroit Michigan October 7th through October   9th 2025 for the purpose of representing the  city of Witchah consistent with AR 3.1 be   approved Upon return from travel actual expenses  shall be reported to the controllers's office I will move to approve my travel I'll  second Motion and a second Any further   discussion i see none All those in favor say I I   All those opposed same sign Motion passes  70 Madame clerk please call the next item Approve that pursuant to section 204090 Council  Member Glascock's travel expenses as estimated   on the travel authorization and expense form to  ascend city to city in Detroit Michigan October   7th through October 10th 2025 for the purpose  of representing the city of Witchah consistent   with AR 3.1 be approved upon return from  travel Actual expenses shall be reported   to the controllers's office I move to approve  council member GlassCox's travel Second motion   and a second Any further discussion i see none  All those in favor say I I All those opposed same   sign Motion passes 70 Madame clerk please call  the next item Council member appointments and   comments Do we have council member appointments  or comments i will begin with comments Um I would   like to ask staff how many uh applications did  we receive for the city manager uh consultant process may Mayor I don't know I know that closed  at 5:00 on Friday I have not talked to HR this   morning We'll get that out to you just so that  everyone's on the same page Again this is just   for the consultant to help with the city manager  selection process Again applications closed on   Friday at 5:00 p.m and we will receive as a  council how many applications um were accepted   In addition we will continue having discussion  regarding how the selection process will work   Uh there will be full uh community engagement  over time Um so again uh I appreciate getting   that update or we will be getting that update  soon Any other comments from council members   i see none We will I will move to adjourn this  meeting Second Motion and a second Any further   discussion i see none All those in favor say I  I All those opposed same sign Meeting adjourn 70   City Manager you can begin the workshop now Thank  you Mayor Um we have uh some items related to our   um budget recommendations for 2026 and 2027  We're at a very preliminary stage but thought   this is really appropriate an appropriate time  to check in with the council um on our progress   and some issues that we are um working through  The first of all what we'll do is we will share   with you and we've already sent it out and is  available to the public as well the pillars and   the goals and the work that's been done uh towards  implementation of those You'll notice uh in this   document a difference from previous documents and  that now there are tactics in order to achieve the   strategies So we'll go through that briefly with  you Be glad to answer any questions Again work in   progress Um we'll finalize it when we get to the  budget Um but hopefully it's reflective of your   uh desires based on uh previous uh direction  After that we'll then go through some uh budget   reduction options Council had um instructed  us to do two budgets Um so we basically have   a base budget and then we have some targets for  reductions based on a a different scenario which   would limit our property tax revenue Uh we  have some preliminary thoughts on not just   um what that looks like from a uh  revenue and expenditure standpoint   but what it would take in order for us to  be balanced in both cases So we have some   uh items for you to discuss and give us some  direction on Again preliminary So um appreciate   your thoughts before we go further in the budget  process And the last based on your discussion   um during previous workshops is a uh thought  piece regarding a local sales tax So um there's   a lot of information that is in in the attached  report and then we'll summarize that for you in   today's presentation So a lot of moving pieces  and with that mayor we're ready to get started Sha is it on the next slide okay just just Oh  great Well good morning everyone I'm Elizabeth   Golry from the finance department and um  as the city manager mentioned we're having   a budget workshop today Um and he I I will skip  this slide with the overview because I think he   did a great job of describing all um the outline  for the presentation today Um there's been a lot   of strategic planning that's been ongoing this  year And um this graphic here on slide on this   slide slide 11 is um I think sometimes when we  have these workshops every month it's good to   just provide a little context of where we've been  so far and where we find ourselves in the process   So at this point um in 2025 um there's been a lot  of work that's happened to date but at this point   um the tactics have been drafted and those  materials you have and then the next step is   um working towards the performance ma management  framework um and building capacity in the   organization for that and that will be really  illuminating perhaps in for the budget process   this year but definitely for the budget process  next year um at the workshop in April we shared   some um pillars goals and strategies and we also  shared those at all six of the DAB meetings that   we attended I think we shared an example of  three of them Um and I felt that the feedback   that we got at the DAB meetings that those um  pullers goals and strategies resonated with the   community So I feel like that's that's  a good sign of progress moving forward Okay So what these things if you're new to  this pillar goal strategy tactic language um   the pillars are the really highlevel elements of  our mission statement There was a lot of work done   on that early in the year and the same is true of  the goals and then the strategies were shared last   time and then this time um we're diving into the  tactics and as you can imagine um there are there   are 46 strategies So every strategy has at least  one tactic So I think there's about 60 tactics   So there are a lot of them And so there's a  handout that has been distributed and it includes   um the tactics and a lot of them include timebound  elements to them So this will happen in 2025 or   that will happen in 2026 or by this point in the  process this will occur Um and so they're they're   pretty concrete So um I guess this would be the  right time to go through those Um just starting so   it looks I I can this one starting on that page So  for example the first pillar that we have is the   well-run city pillar So the goals are over on the  left side and you'll also notice with the goals   that there's some highlevel outcome measures with  each of them Um on the well-run city the goal 1.1   it's related to um that goal is really related  to financial condition So that outcome measure   is related to fund balance But then on some of the  others what we've done in that column is that the   outcome measures are related to the community city  survey So for these highlevel goals that we're   using um feedback from the community to guide to  to determine um how that implementation is going   But as you go through each of the tactics  for example the first one all departments   will inventory activities and determine their  placement on the cost recovery pyramid by 2025 So   we're getting into things at this point that are  very concrete very actionable and time bound So   um should we go through all 60 of them so um  I I don't know if there's any particular goals   or strategies that are of more interest than  others Um but we have a lot of these tactics I   appreciate the work that the departments have done  to get us to this point Um again the the tactics   are extremely important because this is how we're  going to implement your goals and your strategies   and we're uh open to any feedback you have I  didn't expect we'd have a real robust discussion   over 60 tactics today but if there are any that  jump off the page more than happy to visit about   those Also more than happy as on an ongoing basis  to discuss those I meet with all of you weekly and   love to have any discussion on those items and  ultimately we'll bring this back um for uh your   discussion as we start to finalize the budget  One thing that's important is that this these   uh tactics help shape the budget and so your  priorities are reflected as we are drafting   the budget recommendations We're trying to give  priority to these tactics and recognizing those   that aren't necessarily in alignment with your  strategic initiatives so far So and as a reminder   too we have a workshop scheduled for June 25th So  in addition to um feedback on an ongoing basis if   that was your interest we'd have an opportunity  to really dig in then as well I have a couple   questions I'll start off with um for tactics  in particular since these are very finite   I would like to see moreus um written and whether  it's for instance MABCDUs making sure that those   are intact in place and uh everything has been  documented um if there are any otherus that need   to be um created or really worked out I encourage  that in the tactics um the other is since there   are 60 of these tactics can you just go over  high level the the pillars Sure And just um   just I know not everyone in the community might  be able to see these documents I think there's I   think there's copies out in the hallway though too  So but if people aren't joining us online Yes So   the five pillars the first is well-run city Um  and so that is related to financial management   human resources technology staff training And  so there's tactics here related to financial   management um uh data governance and um community  engagement and um public information as well as   um supervisory training And so the other thing too  I think the comment about is so germanine because   a lot of these things that are in the tactics  are things that are very interdep departmental   and interdisciplinary and they also really  address things that are in the lower right   hand quadrant of the community survey um nearly  all of those topics so crime prevention economic   development homelessness services affordable  housing um they they're not just the work of   one department right so there is a lot of work  here that will requireus and also potentially   administrative ARS administrative regulations as  well Um and then the next one pillar number two   is keep witchah safe Um so that one has a number  of goals and one of them that's in that is um is   related to partnering with residents um and crime  prevention and has a lot of focus on reaching out   to neighborhood groups and homeowners associations  and DABs And so there's tactics and that would   be on page four of the handout So as an example  there's tactics there that are very concrete Um   so instead of it just being kind of a theoretical  concept that there are very concrete tactics about   initiatives and community listening sessions  um and infographics So those would be things   um to expect um to see what that you know those  as those roll out during um over the course of   the year Um and then pillar number three is go our  economy and that's um another topic that's um on   our community survey is economic development is  something that's of great interest to residents   So some of the concrete things on this one would  be um cultural arts is part of the economic   growth this in this um in this pillar and their  strategies related to that So they're looking at   revamping the cultural funding program as part of  the cultural arts strategy plan So again that's   another thing Um there would be a plan and city  council action and something that you would see   in the future So if you don't think your meetings  are interesting enough there'll be even more right   there's going to be a lot of activities that are  generated by this And the afford and the maintain   it build and maintain dependable infrastructure  Um that's another priority for the community   Um there's been a lot of work done in the public  works and utilities department regarding asset   condition and maintenance And there's um if you  remember back to the last um budget workshop um   so much of go and LST funding is directed toward  maintenance activities But the tactic here that's   very concrete is to um bring in another asset  class when it comes to um asset condition and   that would be park and recreation assets and  that dovetales nicely with the park master plan   um efforts that are will be underway And then  the last I think the last pillar is living well   So an example there So um that has to do with  safe neighborhoods um access to educational and   recreational opportunities literacy and also  that's where um providing shelter and to for   residents experiencing homelessness follows in the  living well um pillar Um so one strategy that was   mentioned last month and at the DAB was to work  upstream to prevent homelessness by implementing   workforce development and affordable housing  initiatives And um a tactic there that would   certainly come back to the city council is to  review the zoning code to better align community   goals and regulations So that's something that  would certainly result in city council action Um   so I think what's just we've you know is that in  the budget office we work with we are in contact   with all departments and we've been collecting all  of this information Um and it's it's I think that   one thing um that's true been true of this process  is that there's been a sort of reorienting um of   focus and I think that sometimes the focus isn't  drastically reoriented but putting it all together   into the strategic planning documents the pillars  and the strategies and connecting people even more   um has been an interesting process So I feel um I  review budgets every month which is an interesting   thing that I do I feel that um because our budgets  reviewed and vice versa I feel that when I review   budgets I can tell when depart when organizations  have cross departmental efforts and things going   on with the community And I would say that I feel  that the city of Witchah has always um excelled   at that But this strategic plan just takes this  strategic planning effort really just takes those   um that collaboration to the next level So if  I can build on Elizabeth's comments especially   those closing comments the I think the what this  document rec recognizes is the complexity of   the issues that we are facing as a community and  that it's going to take different approaches and   strategies in order for us to be effective It's  going to take partnerships which goes back to the   comments that Elizabeth and the mayor made It's  not justus but everything that we do to partner   with agencies outside of our organization as  well as Elizabeth said across departmental lines   It's going to take a lot more data uh driven  decision- making It's going to uh require us   to better utilize technology and to look at best  practices and actually create best practices where   um necessary in order again for us to be able to  really address these complex issues that we're   facing There are not a lot of simple issues  that are outlined in your strategies and then   uh tactics are probably a little more finite  because we're trying to implement those   But uh if you look through the work that  the departments are suggesting be their   priorities for this next year there's some  really exciting things Um but uh probably   more importantly a lot of um uh leveraging of  resources in order to be able to accomplish   uh desired outcomes And that's the other  thing that's exciting is we're focusing   on outcomes And that is has not always been  the case in the past And I I think uh the   staff has done a wonderful job of embracing  that as this document's been put together I appreciate the work that uh not just  the finance department did but also   intercolaboration department conversations  that have happened over the last few months   Um so I would like to highlight I know that  um the pillars are whether it's well-run   city safety economy infrastructure and then  living well I would challenge and say that   infrastructure number four should actually  be number three but this is just a personal   um opinion Uh because I know that we talk a lot  about water sewer the streets and that really   is based off of our community survey Streets is  number two in terms of priority First is crime   second is streets which is infrastructure  So my challenge then would be with these   pillars I know that you're not taking them as  priority one through five but I would challenge   and say that that should be um I think that the  community is expecting that we have a well-run   city that would be managing the assets that  we have But then second and third really are   safety and infrastructure So can I ask how some  of the uh tactics regarding economy how they are   not necessarily the city of Witchah that's not  really government can you explain some of the   tactics and how you're working with really the  private sector who should be driving economy that's a good point mayor u and one that's  sometimes lost um on folks when they're   discussing the city's role in economic  development um if you look at the pillar   grow our economy Uh the first strategy talks  about a partnership with the greater Witchaw   um development or greater witchah partnership  and the we also then are working with   um uh the internally with way to work in  terms of getting uh new partnerships and   bringing people in from the outside Uh we  also are working with others in the cultural   uh arts uh in the community in order to get  get a more robust offering for our community   but also make it affordable for those who have  income challenges Uh we have partnerships with US   uh USD 259 and Witchaw State uh to um prepare our  youth for uh uh jobs in the community And then   uh Elizabeth has already talked about uh embracing  a partnership with the building community on a   revision to our uh policies our regulations  governing uh construction and development So   that's just gives you a little bit of an idea  A number of agencies are listed in that area   that area But again we don't create jobs We just  try to provide an environment for the public or   for the private sector to be able to do that Yeah  this is such an interesting topic too Um with the   community survey it's commissioned in communities  across the country and almost universally the top   two the one and two will be different from place  to place The priorities though for residents are   um economic development or economy and safety  And so it's an interesting role I think that we   I think the staff's done a great job of pointing  those things out um where we can where we can   participate I think too just going back to all the  work that I was involved in with ARPA for a number   of years that there were already things that were  happening and that we provided support or um I   don't know we will have that much support in the  future It was pretty considerable award but that   that knowing that every player has a different  role and I think that's true of the homelessness   work too There's just so many different people  who have bring different skills and um I don't   know gifts is the right term but we all bring  different things to the table So but it is an   interesting lots of interesting PCO conversations  about this topic because it does rise to the top   but it's like it's not like infrastructure where  it's really evident what we're what we're supposed   to be doing you know paving streets and taking  care of buildings and mowing parks and what have   you So can I ask further the collaborative effort  to try to engage because pillar number three grow   our economy has fewer tactics than the other  more robust like keeping the community safe   um the engagement with partners like Greater  Witchaw Partnership I think you mentioned the arts   in here as well Transportation is a function of uh  the city of Witchah But um my question really is   more about whom have you engaged outside of  city hall to talk about growing our economy Troy you may want to talk about what we've done  in the small business arena because that's where   council's resources have been targeted the last  year and we anticipate that will be continued   going forward Yeah So I'll um expound on that  a little bit try to put it into a couple of   different tanches right obviously we have  largecale economic development initiatives   right about attracting and retaining business at a  very large sort of macro scale Um and that's where   uh our community partners like Greater Witchaw  Partnership Chamber of Commerce really come   alongside uh Carrie Water in regards to  the attraction and retention of largecale   macroscale business Um they also come alongside  us in helping identify opportunities to uh rem   remove barriers as it relates to um keeping  retaining and attracting talent right um the   next sort of mid level we have around sort of main  street business right and supporting main street   businesses We know that small business is kind of  the lifeblood of communities and so we uh partner   with communities uh or organizations like uh  Witchaw Independent Business Association Weeba Um   we support create campaign Um again even even some  of the groups like the chamber also come alongside   and help us identify where there's opportunity  in sort of the main street business environment   uh we're in we're we're also having really good  conversations in sort of the incubator space   the accelerator and the incubator space right we  went through uh the grant program with Nexus uh   a year or so ago you just heard about the success  that Nex has had when we came alongside them and   supported them in accelerating you know businesses  that have shown uh a product or a service that   can be scaled right and so uh accelerated programs  that that last sector is one we're really starting   to dive into and that's incubator space right  so we've had really good conversations uh with   Witchaw State University Barton School of Business  Center for Economic Development Business Research   right about how we come alongside and help support  the incubator space right and not just incubating   businesses for the sake of creating more  businesses right but really trying to identify   those holes in our um in our community and in  our region where we need to try and backfill a   very specific type of business right and then  being very intentional around how we can maybe   uh develop and help incubate a business to  fill some of those You've heard a little bit   about the the scorecard the WA scorecard right  and so we're trying to be really intentional   across the entire spectrum not only of reta  uh retaining and attracting business retaining   and attracting talent um but also uh all of those  are contingent upon quality of life which is kind   of a whole pillar in and of itself right roads  transportation affordability all of those kind   of things And that's where we're connecting not  just within those businesses that are primarily   tailored towards economic development and  business and talent but just improving   the quality of life for WTOs in general I would  challenge and say that another piece that should   um be activated and really talked about is  the talent of 18 and below So uh working with   USD 259 in the future ready centers Future Ready  already has advanced manufacturing at North High   Then you have healthc care down south uh Harry  and Oliver and then it is going to be the next   one I would challenge and say that that is where  um even some of our uh investment should go when   it comes to growing the economy It's talent  and keeping these graduates that literally   just graduated this month to stay in Witchah Um  so I would see that there's uh opportunity with   USD259 Uh next week on Wednesday we will have our  first town hall that brings together the county   USD259 and the city to just talk about some of  these uh opportunities between the three of us   between the two of us Um and I think that that  should be part of the conversation too Yeah Mayor   I I think we recognize that And uh Elizabeth help  me if uh with a number Do is it about $3 million   that we put into the two readiness centers with  ARPA yeah that seems about about $3 million that   we did previously plus we are negotiating or we  have negotiated that agreement with WSU Tech for   their facility out at Jabara and the council gave  a discount of about $1.6 million in order for that   facility to be able to be built So again I think  we do recognize that we need to grow our workforce   uh our available workforce and those are ways  the council has I think prioritized th that   type of partnership I would also add since you  mentioned that the biomedical campus itself also   uh maybe not USD 259 per se but it is WSU  KU and WSU Tech So I see us having a more   uh another portion within this pillar talking  about our collaboration with education while we   don't take care of education with property taxes  Property taxes do go to schools separate entity   uh but they can be part of this uh  pillar as well So just a challenge   that we should also talk about education Thank  you Elizabeth Any further questions for staff   yeah just one follow up on that Uh since the  mayor brought it up we also participated in   project witchah with downtown So we may follow  up with them and see one of the final committees   I believe was talent retention So kind of does a  lot of what the mayor was talking about maybe just   working to get updates on that And they worked  I believe with Dr Utach as well as we looked at   trying to rearrange our education system here at  all levels So it might be a good refresher on that All right Ready to move on to the budget part  all right I mean it's all the budget part but   then the part with the the financials So as we've  promised you every month we've promised it we'll   come back the next month with a with a budget  update And that's what we've we've got here for   you Um we've made some modest revenue adjustments  based on Q1 performance and that first quarter   report was presented to you earlier this month  Um expenditure items we continue to review them   with department staff to make sure things are  technically accurate And um overall it appears   that the forecasting risks are still are the same  and I will um walk you through those particularly   for people joining us the first time Um it's  funny because I'll get emails or things They're   like "It's you know from other entities or people  say,"Oh you're moving into budget season." Like   we had our first workshop in January So it could  be people are joining us for the first time if   they think this is budget season too Um we are we  have an evergreen budget season it seems like Um   so some of our forecasting risks in the budget are  position vacancy rates I went through and recently   um um we we do this pretty regularly for month  to month and look at how many vacancies we have   compared to the prior year Um changes in economic  conditions impact our budget outlook Changes in   monetary policy have an outsized impact on our  interest earnings projection Um property tax   growth rates which we will receive that notice  next month And then higher than expected labor   rates in 26 and 27 Um and this is an um important  variable to remember just because the general fund   so much of it is salaries and benefits So it has  an outsized impact on the general fund compared   to other funds Elizabeth yes Um how much does um  kind of the expected rates with tariffs factor   into any of our spending here um so that would  probably there would be two places where that   would impact us Um it could well really three  it could impact us when it comes to commodities   costs but just to keep in mind commodities are  relatively small portion of the general fund for   materials Um it could impact us when it comes  to contracts Um and so that would be ongoing   contracts that we have for things like maybe um  fertilizer at golf courses or it could impact us   um when it comes to construction contracts And  you all would see those larger contracts you   would see that starting to happen um because  board of bids happens every week Um the other   place where we would expect um something like  that to impact us um and that would be in sales   tax collections and those there's a very short  lag when it comes to sales tax collections So we   should be receiving a distribution this week and  that would be for activity that occurred in March   So those are the so materials we purchase  directly contracts that we have with other   with other businesses where the materials are  part of the contract and then revenue Okay So um   have we looked at building that is that kind of  built into the CIP just kind of any of the cost   changes that we might expect and then the second  part of the question is would we expect the sales   tax revenue to be higher because of the the the  tariffs and new rates Yeah So the first part of   that when it comes to the CIP most likely what  what hap because this is all very there's a lot   of variability right now right um and I think that  we do best when we focus on things at the city of   Witchah rather if I if I had the skill set to be a  macroeconomic predictor it probably not be in this   role anymore run into the same thing with um like  natural gas prices for example I mean um there's a   lot of factors that play into that um if you were  to start seeing project costs that came in above   the engineers estimate what would most likely  happen is um that project budgets would be moved   around and that projects would be um that weren't  ready for design or weren't ready for bidding yet   would be moved into the future That's what we  did during um there was a period of inflation   um 2022 2023 inflation and that's what we  did and I would expect that would be our   practice again Um it could also be the case if  something um maybe a project would be rebid or   um if there weren't many biders or there's a a  number of different strategies but just from a big   picture perspective that's most likely what would  happen And then you asked about sales tax Um so we   have a very broad sales tax when it comes to local  sales tax in Kansas Um it really just depends on   consumer confidence and consumer spending and  whether people hold back on spending and maybe   delay purchases maybe there was something that  someone a bigger purchase someone was a family was   planning on buying and they're going to delay  that or if things are really more inelastic   and it's something that needs to be purchased  immediately So um I think it's really too soon   to tell but I think that they're probably there  could also be the flip side could be happening   with the March collections which will get the  distribution in May It could be that people are   um buying things now that they were planning to  buy later because they're afraid that prices will   be going up for some maybe kind of things  you don't buy every week right so some of   those items So I think it's too soon to tell  but we you know the the most important thing   that we can do is monitor and to continue to  adapt And we have um as you all know we have a   proven track record doing that So we'll just stay  the course with that Appreciate it Thank you You bet So okay So when the budget was approved last  year um there were a number of initiatives that   were included um that came from the bench and  those were included in the 2025 revi 2025 adopted   budget and are ongoing And I just share these  items with you for two reasons to share that   they've already been included in the budget and to  share that they won't you won't see them again on   the list of reduction concepts except for um court  staffing So there was a some the item in your on   your handout for court stamping court staffing  is an addition to what was approved last year Um   there are some cases where concepts are presented  to you and the entire amount that was included in   the budget was not captured as savings for these  ideas during in 2026 simply because there wasn't   there an alternative was approved and so when  you see that the 2026 deficit is slightly higher   that's part of the reason why so those were for  I facilities and street maintenance and also   um park maintenance which should be on that list  but so much maintenance So those are those three things Some other updates since April 22nd um  the safer grant local match adjustments um that   has to do with the wage rate when the grant was  approved and the wage rate currently Um our two   big internal service funds that support our whole  organization are the IT fund and the fleet fund   and adjustments to rates were made to those And  then we made some other expenditure adjustments   um across the general fund On the on the revenue  side um franchise fees were increased for 2025   Um we've um that's another one like sales tax  that we receive the revenue relatively quickly   um after the activity occurs and natural  gas revenue for the first quarter is very   high due to the winter weather but that's  not something that we can necessarily you   know predict or expect in the future Um the  sales tax base was changed and um interest   earnings were reproed um dur due to the current  environment So here's what it looks like as a table So what you'll see is with all of  that in 2026 um we projected a deficit   of a million dollars la in a month ago  feels like more than a month ago A month   ago And now we're projecting a deficit  of $2 million in May Um and but in 2027   um it's pretty similar And that's because if  you see that safer position adjustment that's   a bigger it doesn't impact 2027 just 25 and 26 So  that's the reason why that would happen that way So on to balancing the budget You some handouts  have been provided um and these list a lot of some   scenarios um some ideas that were provided  to us by department staff Um at this point   um the scenarios um are of varied impact um  some of them have less impact on internally   and on residents Some of them will have impact  on us internally as staff and how we do our   work and then some of them have impact  directly on residents in the community   So they're placed in order that way Um and  so reductions in areas um this might seem   like a lot of ideas but we've received even  more ideas from departments Um so this is   um these items were considered with with  regard to the community survey priorities from residents So quickly um the first one here  is health insurance costs Um health insurance   experience So we're self we're self-insured as it  mentions in the handout Self- insurance experience   um our expenditures have been less than projected  So rate in we budget for rate increases of 6% a   year So those rate increases could be less in the  future So that's that one So it have no impact on   it would have an impact on employees that rate  increases would be less but it wouldn't have   an impact on the community or the organization  Um likewise um finance department pays for all   the postage for the organization and people  are just mailing less So that's a place that   could be reduced um park uniforms Um that was  included in 2022 in the budget to standardize   their uniforms and expenditures um we gave  them some time to get the program implemented   and expenditures have been less um than budgeted  So again that would have no impact And then the   last one is some HR contractuals costs based on  them evaluating their budget and where they have   um pretty typically have under spending  So could we touch on um item one again   is that expected savings or is that something  we would have to go and the savings have already   occurred does that make sense So the experience  last year so at a point last year the rates were   set for this year and so from that period  from the time the rates were set to now   um the experience has been such that the rates  for next year could be less of an increase   than budgeted Okay So there's no impact to the  percentage that employees would have to make No   there's no plan changes here That's something  that I think I would consider in a lower We   don't have that concept We talked about it last  year but that that is I think referenced though   um in the tactics um rel relative to benefits  like how benefits are structured So that's a   bigger bigger conversation Okay And have these  savings been figured into the the previous   um the previous slide here no Okay So  here we are with number 19 So -2 and 5.5 And so these get you closer if you think of  it as a number line these get you closer to zero   Okay so these these savings right here that'd  be roughly half of the deficit that we have   for 26 Well 20 yes 26 is 2 million So yes Okay  I'll ask that question as kind of a follow-up   So in the individual packet we have I think  page one said the modified assumptions or the   strategic reevaluations are at 0.9 Is this the  0.9 we're talking about yes Okay So that these   are already taken in consideration which helps  get us to the net of zero under modified these   are ways to get you to zero Okay And these are  already being implemented just in practice We   want well these things with the health insurance  rates So the question here is we we budget the   the budget right now the one that's in the  computer right it's 6% increases per year   And generally we would come somebody would come  to you in the fall and set the rates based on   experience And what we're saying here is are you  all are asking are you all comfortable having a   lower assumption in the budget projection than  6% based on experience because we think by the   time we get to you this fall that that would be  the case Okay So these are assumptions Number two   specifically the postage cost Is that primarily  I would imagine water bills being sent out to   people what water bills in court good question  Yeah So water pays for their mail directly Okay   So this is everybody else um except for planning  pays for theirs a lot They have a lot of mailing   requirements So they have their own Um but this  is just here and there letters and we recover it   through the our indirect cost allocation plan  So we're not as generous as we sound but yes   Okay Yeah people are just mailing less I don't  I would when I have to find an envelope in the   office I'm like where are the envelopes right  Thank you So any other questions on this slide 22 all right So um and this one on on page three  there's more We we've split them into two slides   So um the total's on the next one Um the first  item is an a concept provided by library Um there   are some things that um that they some formats  that don't get used as much and these are for   um newspapers and some audio collections that  adults don't use as much So this would be   reducing those types of formats The next one also  from the library um they're planning on doing a   study starting in 2026 on technology um once all  of the new branches are located opened and looking   at what computers get used what types of you know  how many need distributed and also looking at the   selfch checkout machines So it would take  some time to generate savings here because   um there might be contracts for some of the selfch  checkckout machines like you're under contract for   a year for so many of them and what have you So  that's why that one takes a little bit longer   And the next one is um the library told us that  their local history section is staffed with three   and a half positions and that they that they  would um be able to shift staff to other areas   Instead we program that in as a reduction to the  budget since we're attempting to reduce the budget   Um and so that's what the genealogy partnership is  So the the library staff would be maintaining the   collection and then the genealogical partnership  Um they would be helping more with the customer   service like if people came in with a question  about a person who had lived in Witchah or what   have you So those are three library items Um the  municipal court one is interesting I think that   you all have talked about this in the past some um  the number of traffic citations is significantly   lower than it has been in the past Um and so  that this concept here is to reduce some more   um contractuals related to collections activity  because there's fewer citations and also   eliminating a position once um the interface  between the police and court systems is um   automated But the other concept here is to reduce  one courtroom based on activities So that would   result in the elimination of three positions And  again this is savings for 2026 This is not savings   immediately You know this is something that would  be transitioned to So that's the concept there   Mayor if I can add a couple of items a couple  comments Uh number seven I just want to this is a   work in progress and so there are some variations  from what the department submitted to where we are   right now with you looking for feedback We also  need to refine these concepts with the departments   Uh on number seven the genealogy partnership  that when that was discussed by the library   it was primarily to be able to free up additional  resources for literacy programs Um but what we've   done and try to get balanced is capture those  positions not move them into the literacy work um   but instead to take that that savings Wanted you  to know about that because that's an issue that's   a policy issue and the enhanced literacy efforts  are included in your strategic plan So I wanted to   highlight that The second is in terms of reduced  citations The department had submitted a savings   primarily uh due to some um technology changes  that have been made and some positions that could   be eliminated or reduced in scope because of the  technology But this continued decline in citation   activity caused us to also question whether or not  we can support the courtrooms the way that they   are right now And so we're actually recommending  a serious look at reducing as Elizabeth said one   courtroom but I wanted you to know about that as  well It's not fully vetted yet at this point but   this that's a we I think we do have to recognize  there are some workload issues that are associated   with not having the kind of citation activity  we've have in the past I just speaking up on   the um the literacy aspect I do think that's one  of the things that is very vital to the library   system especially moving forward So I'd like to  see if we can smooth that that cut a little bit   there and make sure that we're still trying to  kind of get into again the biggest what is it the   biggest indication of a child's future is a third  grade literacy So I think that is something that   is very instrumental to our library system So not  saying we can't look at cuts or moving it around   It's just make sure that we keep that you know  kind of keep that peg in the board there too and   try and accomplish that goal Bob is that already  being accounted for though what I'm understanding   from what you just said regarding um literacy  is there's already budgeted items for literacy   within the libraries These are a savings of three  and a half individuals um in libraries if we just   did not do this part You don't have to reallocate  them to um reading or literacy initiatives There's   already literacy initiatives that are happening  Correct Mayor that is correct It's one and a   half positions if I remember correctly um that  represent the $100,000 Um I think the question   probably is more about our ability to achieve  what's in the strategic initiatives and there are   a couple of literacy and uh programs that would be  above and beyond what we're currently doing to try   to achieve your goals and that's reflected in the  tactics Um so we would probably make less progress   on that with this $100,000 being taken as savings  I would just say ditto to council member Hohheisle   um support on that and also um would reducing  one courtroom impact anybody's right to a speedy   trial would it make things longer or harder  going to let Dante and Nathan talk about that Good morning Mayor and Council And thank you  for your question Council Member Johnson I   don't want to speak for Nathan because he's in  the room but um the court does keep measures as   far as time to disposition clearance rates  So as the manager talks about thoroughly   reviewing the impact of potentially reducing a  courtroom that'll be a consideration The other   part of this is in addition to case filings  court cases have gotten more complicated We   have competency hearings with recent changes in  state law We're have more tools available to us   in regard to driver's license suspensions  So it's those sort of questions that have   to be answered before any recommendation or  decision is made in regard to a courtroom All right are we ready for the next slide okay Um  and these are all in that same table So the next   one is reduced tree planting And so um the tree  planting is currently budgeted at 225,000 a year   Um based this reduction um would probably not  in this time period might not have as dramatic   as an impact as it would have in the past due  to drought restrictions If those restrictions   were to change this is something that could be  revisited but um it's really a reflection of   that those restrictions Um the next one the next  one is related to athletics scheduling and this   has to do with the scheduling of athletics  officials um referees and so this would   um their idea here is that park and recck  starting in 27 would optimize the way they're   scheduling to save costs and referees Um and  then the last park one and there's a pretty   um extensive write up here Um the city of  Witchah has been mowing right ofways that   are just adjacent to private property Um and you  can read more in the handout about that The idea   would be to discontinue that mowing starting  in 2026 because if it's adjacent to private   private property it's the private property owner's  responsibility Um and the planning department is   um proposing an application fee increase for  26 and then 27 And then um number 13 connects   directly to um one of the tactics that I read  earlier which is a cost recovery study um and   that would be implemented in 2027 and that would  focus probably largely on licenses and permits curious on the uh right ofway mowing um about how  many properties is that do we have any sort of   ballpark estimate i don't know Do we have some do  you want to come forward Gary so they can hear me thankfully our expert on rideway mowing is here  Gary thank you Gary Ferris park and recreation Uh   I do not have a specific number of properties that  will be affected today I as we do the analysis to   find the complete impact that number will become  apparent and will be shared Okay Yeah I'm curious   about that I mean it's more than 10 probably less  than 500 Okay Well that's not as bad as in my head   So I appreciate that We'll look at that number  as you develop it more Thank you Well one other   question on that and it may end up costing money  but have we ever thought about in right of ways   just having like creeping time it only grows  to be about 2 in You don't have to cut it It   just stays like that So that just eliminates a  need for any mowing of it at all Well and these   are the ones that these aren't the right ways  that are the medians These are the one like or   on Kellogg That's still our responsibility These  are the ones that are adjacent to private property   Okay I was thinking more of the medians compared  Yeah And that's a Yeah And that and that's we've   been having some discussion too Is it there  probably will be less expenditures for water in   the park department due to drought restrictions  And do we take this time and those savings and   look at different ways of of different ways of  having different I guess they're called turf   conversions Yeah So looking at those things  Yeah Is that something we could plant like   wild flowers on and kind of beautify it that way  that way it would snuff it out and require less   maintenance Yeah So um I was the budget analyst  for the park department for a long time So I'm   full of interesting stories Apparently there  are situations where when they've done that   people come out and they say "Don't worry we  mowed that for you." Does that make sense so I   think there's an educational component of it as  well Okay So that we've we've switched over to   that and you know and sometimes and then getting  there it's a little scraggly once you get there   it looks good but those are always fun stories  Are you all ready to move on to the next group   no Okay Um I just want to go on the record and  say I am opposed to reducing the tree planting   Um I do realize that we're in a drought but  um last year I believe is the first year that   we planted more than we removed And so while  I think it's a short-term budget fix I think   it's irresponsible long-term to continue to keep  on putting off um tree planting So um I assume   as we come out of this drought I would like  to keep that money allocated and do a lot of   planting all at once if that's what the schedule  um looks like depending on what happens with the   drought but I definitely think it's important  to leave that money allocated So thank you   I agree with council member Ballard but I would  also like to see how we can lower that cost by   working with community partners as well if that's  something if we can continue our partnership with   ICT trees and whatnot and maybe if they'd  like to take some of that load off of us So all right Okay we ready now for the next one okay  Um so the next one these are things that start to   um have an even greater impact on the community  Um the first item number 14 would be to cap growth   um for the support of the cultural institutions  at um 2% Um this would not impact all the the   cultural arts grants as a clarification Um number  15 is eliminating um kind of a mid-level position   in the city manager's office and duties  would either be eliminated or reassigned 16   um would be to reduce the amount of public art  in the CIP You may be asking yourselves well how   does that impact the general fund because they're  different funds But if we were to program in the   C that in the CIP for future years there could  be a mil levy shift from the debt service fund   to the general fund Quick question regarding a  mill levy shift That would only be like if it's   projected at 900,000 So that' be like 15th of a  mill of a shift Is that correct it is not very   much It is something along those lines So let's  say we shift 1 mill from the CIP to the general   fund That frees up about $5 million in general  fund operations that would just deplete the CIP   of 5 million Would that be correct roughly Yeah  roughly The the trick with doing the trick with   if you have a pro if you have projects that you're  not doing and doing and identifying those savings   um makes that sort of a shift more tenable Um the  difficulty of doing a shift of that magnitude is   that we have outstanding debt So you would really  if you wanted if that were the direction to go   that direction and shift from the debt service  fund to the general fund it would need to be   phased in as that debt were amortized but were  amvertised quickly over a 10-year period or or   you'd be able to have another mechanism that  could fund debt service projects Yes Correct   more cash fund projects if we do that shift over  Right Right We can and that's going to be part of   the next discussion But I think the takeaway  is without that additional revenue source we   really don't have much flexibility in 26 and 27 to  take out of the CIP because of our existing debt   service obligations and some projects that are  already anticipated to be constructed So we won't   we're really tight in those uh those two years So  we couldn't shift more than a fifth or what would   be a fifth of a mill unless there was another  mechanism Well this was this was specific right   because it was taking from 2% to 1% the public art  piece of the CIP Okay Um we'd have to look at what   what projects are available especially in 27 if  there's any delays short of having another revenue   source but I think it would be pretty tight Okay  Thank you Um let's see Oh neighborhood inspections   Um that's number 17 Um there had over the past  few years um budget has been added to this to   the MABCD and the general fund for abatements and  demolitions Um if you've been on the council long   enough you probably remember that there were a  lot of year-end agenda budget adjustments related   to MABCD The budget was increased um last year  For the first time in quite a while they came   in under budget for demolitions and um abatements  and what have you So this concept would be a small   curtailing of the budget for that area Um the next  item number 18 um the park department has already   adjusted operating hours for the 25 season um  based on the last few years they have um data on   what times of day days of weeks that parks are you  um pools are used and they've adjusted their hours   So this change here would be um including those  what they've done in the budget So So and then   number 19 would be to discontinue animal control  field operations starting in 27 Um this proposal   came to us from the police department We had to  move around the number sum between the different   tables So um in the different years um departments  proposed ideas to us and then we put everything   all together So I'll do my best here Um this  amount here represents the animal control division   no longer providing field operations So no field  responses to neighborhood complaints bites and   animal cruelty investigations The shelter would  just become a dropoff facility But in this   scenario the shelter would still be operational  Quick question about this So what would be let's   say someone gets bit by a dock would this just be  a patrol officer answering that call instead of   an animal service officer answering this call  would it just be a field response joe I think   we have some staff from police I don't think  animal control can afford to lose any personnel Councilwoman I couldn't agree with you more Um  we had to make offer something sure to give some   options for budget cuts and we looked at our core  functions what would not impact 911 emergency   response and we prioritize violent crime We have  been doing well in terms of violent crime We don't   want to go backward but yes this would require  police officers to respond to these calls and   and conduct these investigations And obviously  it wouldn't be done as well as it's being done   now So this is not a this is not a recommendation  This is simply an option Thank you That answers   my question as well But and I agree with council  member Ballard as well Um would this under this   scenario this would mean county would pick up on  pretty much all of animal services duties as we   have this outlined we would operate the shelter  So probably and all no it probably would be the   emergency calls would be answered by the police  department but then we would continue to take   animals into our facility So I have a follow-up  question then What are the conversations that   have been had or give me some history regarding  Cedric County being part of animal control um I   know that there are sometimes individuals that  will find an animal not within city of limits   of Witchah but will bring an animal to the city  limits and then Witchans will have to pay for that   care And so what are what are theus we currently  have with central county or other entities outside   of the county in addition to how are we cost  recovering that then yeah we do have someus in   place um for the animal shelter Um we receive  some revenue It's not a significant amount of   revenue but we do receive revenue for caring for  animals that are brought to us from other agencies   Um there's quite a few up up until we've gotten  to the list here I think that there's a lot of   things like for example the cost recovery concept  that connects directly back to implementation of   a tactic Um we did get a lot of ideas from  departments and um a lot of them connect to   implementing tactics and some of them don't Um  and I don't think that there's a tactic in the   framework per se related to animal control  but um you know we present ideas and we get   your feedback And so just know that this is one  of the concepts that's used to model a balanced   budget in 2027 So if this were something that  weren't um there weren't support for that we   would need to look for savings elsewhere I have a  I guess that's just a neutral you know budget you   know just from a neutral standpoint of being  a person who puts the budget together Quick   question So fast forwarding to 21 you don't  have to move the slide but 21 goes on and   says discontinue shelter operations by 2027 And  part of it talks about uh the impact of Central   County operating opening and operating of animal  service facility to service county area How many   municipalities and I imagine this research was  done when we looked at privatization of animal   control previously how many municipalities have  animal service operations opposed to just county   operations just as a state very few have their own  operation in in the county that my recollection   I believe they have contracts with us limited  contracts because they don't pick up many animals   So starting or statewide how many municipalities  verse counties would have it we'd have have to go   back and look at the work that we did previously  Does Lanexa have one or is it a Johnson County   shelter that's really my question Yeah Yeah And a  lot of times in smaller organizations the animal   control the field function is embedded into like  a code enforcement function Does that make sense   it's not a standalone animal control officer but  someone who wears many hats Do does a animal do   the county animal does a county animal control do  they drop animals off at our shelter as well yes   Yes Okay So they're already pretty much using it  just like a regular shelter I'd love to explore   consolidation on this one if county really wants  to to talk about it Um but yeah I I mean I think   we need to have our officers out there our  animal control officers out there looking for   stray dogs I know we've gotten some uh positive  momentum in my district as far as just keeping   dangerous dogs off the street So yeah So just  for feedback I'm supportive of what Council   Member Hoisel said but I'm generally opposed to  everything else A lot of this impacts quality of   life in a way that I think is really negative  for the city So I'm not supportive of those With the swimming pool hours I mean um it's  actually something that is affordable to uh many   kids or families to do Um and it's so seasonal  that um I think it's incredibly important not you   know my 15-year-old son is not going to want to go  to the splash pad So um while those are great um I   think the pools are incredibly important We made a  huge investment in them recently and I think that   um we should maybe try to look at other areas  I do have a question with 18 though because   it looks like it's a modified assumption and it  says that these changes have not been reflected   in the budget but that we're already implementing  this now So would it just be more in the modified   assumption instead of a reduction because we're  currently doing it that's correct Uh council   member great point I I actually I think I shared  this information with you about a month ago the   uh Reggie and his staff have right-sized the  pool operations starting this year based on   data they had for the last several years and  or last few years to show that there are times   where I don't want to exaggerate but we've  almost had more staff members than we've had   users So what they're trying to do is put the uh  staff in the hours where the public really wants   to use the pools And I I think it was a really  good business recommendation and I don't think   that there's a significant drop off in terms of  service levels for our um users especially our   youth Um and Reggie can talk about that if you'd  like Um could we also maybe move that to the   modified assumptions then because it is a modified  assumption rather than what would be listed as   reduction of service levels if it's already being  implemented would be my understanding Yeah Rick the madam uh mentioned that we did look at  data for over the last several years looking   at usage at certain times of the day when we  had more people in the pools uh and adjust   the staffing levels to make sure we accommodate  for that So some areas the evening swim time uh   may have been moved and moved to the weekend time  frame where we had more users that are there part   of it as well as with McAfee with this year but  having some of the high funds with free swim days   that are offered there It gives opportunities for  uh young people to come there as well So when we   did that we looked at our swim lessons and those  things that we got with partnership with uh with   American Red Cross and make sure we maintain  those hours so that those safety measures that   we're doing for learn to swim and things weren't  impacted And then evening time frames we do still   have the option for those who want to rent the  facility they can do that And there direct cost   recovery for staff when they're there at that time  Yeah And it was pretty terrible weather yesterday   So I didn't look at the website for hours but  were the the hours already posted on the website   they are Everything's posted on there and we  didn't officially open yesterday just with the   weather and the temperature So we'll probably be  in the same situation today as well Yeah But yeah   if people are interested in knowing what is the  impact of this it be on the aquatics I think you   can just search for aquatics on our website and if  you also if you download our app and you have it   it sends out notification whenever there is any  changes with the operating hours or when splash   pass may open or close for uh maintenance as well  so that people will know ahead of time before they   go to those locations and while you are up there  Reggie couple more questions because I think this   is a misnomer calling it a reduction it's really  a modification already uh last year the swimming   season actually ended early because of the drought  and so these are things that we need to take into   account and I think where council member Glascock  is asking is this is already a modification that   has been happening since the 24 season and now  again in the 25 season again due to the drought Um   I think instead of going all the way to Labor Day  weekend you ended the swimming season a little bit   earlier because kids were already back in school  So these are really already modifications They're   not a necessarily a reduction is just adjusting  to what um has been happening with supply and   demand So can you address why it's or maybe it's  more an Elizabeth question why is that not in   the modified assumptions instead of a reduction  um recommendation and just for clarification as   well the red reduction in the time frame that we  uh closed the pools earlier did start last year   and that's continued again for this year with  the uh drought restrictions but the staffing   levels and the adjusting hours is something that's  being implemented this year It wasn't last year   Yeah I would say as far as putting it in this  table and not the modifi modifications table   um we can certainly usually what we do after we  present all these concepts is we get some more   details for things that were maybe mo missing and  then remove things or move them around So we can   certainly move that to the diff a different table  for the final version or the next the next version   So we're and again thank you Reggie and your  team because again you were adjusting to the   drought which uh stage two went into went  into effect August of 2024 and immediately   you guys were able to adjust so that again you  were being considerate of the drought but also   kids were already back in school Um and then  second thing is you you're thinking outside of   um reduction It's really a modification We're not  closing swimming pools It's just an adjustment   to when there's actual demand You mentioned  sometimes evening didn't have as much demand   but there was definitely a demand on the weekend  So you see where staffing levels should actually   go So I'm appreciative that we're thinking  more data driven and the data showing okay   well not as many come here but they do come  during the weekend So how do we staff there there's a good pause point here Mayor Um any other  comments because this would bal what we gave you   would balance the budget um if we uh used our  existing tax levy rate So are there any other   comments you want us to uh incorporate into our  thought process as we come back to you i'm hearing   some reservations about uh tree planting animal  control operations um the literacy in the library   We're going to go back and look at the courts Um  anything else that I'm missing bob I just want   to highlight too I'd like to have a further  discussion about the public arts Public art I guess more specifically um outside of my general  opposition I definitely would like to not see   MABCD touched because we pushed really hard to get  more funding there and we never know depending on   the year when that demand may go up or not I'm  glad that they had some savings but just some   of the general complaints I just received over  the weekend Just never know where that might go   Um definitely supportive of keeping public art  where it's at Um I know in the manager's office   everyone in there is very important especially  with us talking about the things that we are   working to do in the community So I'm not  supportive of that Cultural institutional   growth I'm supportive of keeping it where it's at  And pool hours I appreciate the modified plan that   park and wreck is doing um still hesitate cuz  if demand increases on that and then we start   getting pushes for more hours if we've eliminated  the ability for them to do so that's a concern   of mine as well but I do agree with partnering or  trying to work towards a potential partnership and   having a conversation with Sed County on animal  control So just wanted to be specific on each item   So okay So I'm not sure how I balance a budget  but um but that the one thing I would ask are   priorities if if if you could give me a sense of  priorities as we go forward because I we do have   to find 2 million and 5.5 million And I know  there's going to be hard decisions that have   to be made in order to get us there Are there any  can you at least give me a sense of priorities as   you know as I go forward here what do I have  to leave or reduce in a different way as I go   forward just on that chart um the reductions  MABC as a really in all of it I guess because   there were comments in some other tables as  well Okay I'll make a list Do you want that   list by this weekend or So Mr Mr Manager I'm  confirming that the only way to balance the   budget with current existing mill levy would be  to take these recommendations as presented unless   comparable recommendations could be presented from  the council to supplement the list that's or you   challenge us and say "Okay 2 million of what  you've offered is unacceptable Go back to the   drawing board." That's what you're looking for I  don't need you to to try to come up with tangible   um projects or programs right now but I do need  to know what is untouchable in your mind or needs   to be at a different level than what's being  proposed Animal control is definitely a public   safety issue as well as a humanity issue with  the animals in the shelter So unless we come up   with a new strategy again maybe consolidation  with county I think the animal control aspect   of this is something that should be of the  highest priority for us It's interesting too   when I build the simulator every year it has  increases and decreases that are you know 5   10 15% or less Does that make sense and a lot of  these are kind of along those lines of trimming   things using prior year actuals using data from  other you know non-financial data but the animal   control field operations is a deviation from that  because it's not just reducing something or having   slower response it's discontinuing the activity  So yeah you're still gaining feedback from all of   us and I think um I know that the staff worked  really hard in trying to find ways to cut and   I am comfortable with most of these including  and not limited to the public art situation I   have heard from community telling us when you're  in a budget crunch why are we focusing on public   art and so this is again one opinion out of seven  Um so I'm comfortable with moving forward to try   to balance this budget And again this is these  are recommendations simply to keep the mill levy   the same I actually wanted something that would  reduce the mill levy And we're about to talk about   that next And I guess this is a great place to say  raise the mill levy And confirming that state law   requires a balanced budget So difficult decisions  have to be made in some way or another Correct And it sounds too that the two well two things  that there's been the most discussion about public   art and animal control I think are the ones  where there's been the most discussion those   are in 2027 is that whereas most of the 2026  items it looks like there was discussion about trees Elizabeth I just have a question slash  comment slash observation Just make sure I'm   on the right track So let's say for public art  for example we're saying in 2026 keep it intact   And and I always like to remind people it's  not public art We're not putting statues on   the side of bridges or you know whatever We're  just making our infrastructure aesthetically   pleasing And that can be through murals It can  be through design work in terms of you know how   um lighting is placed whatever So I I try and  caution people from it's not art it's just making   sure that our design are aesthetically pleasing  for the community But in 2026 for example and I   could go through any of those 14 through 19 I'm  just pulling out 16 We're saying keep it intact   for 2026 And then in 2027 potentially cutting it  in half Correct Okay Keep in mind and I've said   this before every year that I've been on council  since January of 2019 we've had potential budget   deficits and we are able to always work with staff  to be you know with finance to be able to come to   solutions So even if we said you know right now  potentially that's there there could be a scenario   where things revenue increases other other costs  decrease So that we we're voting on we'll be   voting on the 26 budget and not the 27 budget  Correct That's correct Yes So TW I'm keeping my   eye on 26 more than even 27 because that's what's  the first immediate goal that we need to address   I like the way we were being forward thinking I  like the fact that we're taking all things into   consideration but 2026 is what our main focus  needs to be I think I think a way to to the   way I feel the way I think about it is my charge  is to balance 2026 and to do what we can to make   2027 as balanced as possible and to not make  any decisions that would make 2027 worse Okay   Thank you so much Does that make sense yep That's  last question up to this point would be exceeding   revenue neutral is balancing the budget exceeding  revenue neutral is what this is Yes And I've got   some slides on revenue that are forthcoming So  just for public sake I guess the tree planting is   maybe the only thing that I have a major concern  with in 26 Aside from that I think the rest of it   Looks all right Yeah And we haven't you know  because we've not implemented the completely built   out strategic planning performance management  framework I think it's kind of a leap to think   about it now But eventually we'll be using data  on an ongoing basis not just to guide the budget   as putting the budget book together but guiding  operations throughout the year So if there were   big changes in swimming pool usage or big changes  when it comes to drought restrictions what that   management that performance management framework  allows you to do is to make to be more data   informed on a not just once a year but an ongoing  basis So um that requires I realize a lot of trust   but um that's that's where we're that's where  we plan on going So thank you Okay the next one   um this is this represents a second budget um that  there's been talk about Um so just some background   on property tax The final estimated valuation will  be available to the city of Witchah by June 15th   by state statute The revenue neutral rate or RNR  statute remains in effect There were some there   was some discussion during the legislative session  but there were no changes for this budget year   and so any growth over 2025 would re exceed the  revenue neutral rate So um our valuation for last   year was around five billion If our valuation was  a dollar over that amount we would not be able to   um capture that growth unless the city council  voted to exceed the revenue neutral rate   Um this most likely because we're expecting growth  in assessed valuation this would lower the mill   levy and the solid city's mil levy rate and it  would reduce general fund revenues So so these   are components of assessed valuation Um new  construction um was 1.3% for this year We're   expecting one and a half percent Um something  that I like to point out like for example   um we funded improvements at the Empower Evergreen  facility on 21st Street and I recently went to do   our ARPA site visit for grant compliance Um  that if you've been to that facility you know   that for all intents and purposes it's a new  facility but that wouldn't be considered new   construction because the envelope of the building  was already in place And there's quite a bit of   that that occurs in Witchah um expiring exemptions  These are for the mostly for the um the expiration   of tiff districts um reappraisal So this is this  is any well except for the other category this   is any other growth So we're expecting um 5.9%  um estimating 5.9% this year which is 2% lower   than last year Um but then we provide that was  our initial scenario Then we provide you another   scenario which is slightly higher AV growth which  is 7% Um the county appraiser provides an update   to the county commission each year just of the  mass appraisal report So it's kind of difficult to   backtrack from there to what the city of Witchah  appraisal will be um based on um that information   um a slightly higher amount is built  into the budget currently So in 2026 um in 2026 there'd be a considerable decrease in  revenue received if you went with an RNR budget It   would be less if you went with only capturing  new construction and then a CPI increase on   reappraisal So those are two different numbers  So they're not cumulative They're just different   numbers Synthesizing this for everybody else  as well Even with what's going to be presented   through items 20 through 25 we would still have  to exceed revenue neutral But it would be revenue   neutral just capturing construction and CPI That's  great But we would still have to issue a exceeding   revenue neutral letter to the state to say that  we have the intent to exceed revenue neutral Yeah   To to the to the county Yes To the county Yeah  And if we don't and let's say there is no intent   to exceed revenue neutral instead of items 20 to  25 in 2026 cutting 2.8 we would have to cut 7.3   Correct Yes Correct And then in 2027 we would have  to cut 19.2 with current projections Yes Okay And   then last question I have regarding that too The  CPI plus new construction at 4 4.1% growth That's   around the growth of what the private sector would  be in those same periods Correct In 2026 and 2027   That's the same Could you repeat that it would  be the same growth as the private sector of new   construction plus um the CPI Yeah The C this would  be a look back on what the CPI was for the period   that the the appraisal period to be projection of  what the private sector grew at Yeah And and so I   think that's you know we've talked a lot about  timing like I mentioned with franchise fees and   sales tax the timing is very quick from when the  activity occurred to when um when we received the   revenue This one is different because there's  such a lag too I think that that's also part of   the challenge is that people are operating in 2025  This will be taxes paid in 2026 but it's based on   activity that happened in 2024 Correct And I think  that that's also part of the challenge because   largely we'll always remember 2024 right maybe or  maybe not but a lot of times that's behind when   people are paying their tax bill they're like "Oh  2024 was a great year." You know okay So I think   that's some of the challenge too Thank you I I  want to make sure that that we're clear too Um   on the RNR compliant number the 7.3 is an addition  to the 2 point the two million in the base Is that   correct Elizabeth is it yeah it's on top And the  same with the 19.2 you need to add another five   what 5 million Yeah From the base 5.8 Right Right  Okay Thank you Yeah So just Yeah And that matches   how on page the cover sheet of your handout which  is the modified growth assumption you have the 2.8   million is the top line you know on the top 2.8  and 5.2 so that matches the bottom line of this table So okay so these are modify growth  options Now some of these concepts we put   them here We put things in different  tables [Music] Um and and obviously   we can change them So if there are things  here that you would like to have moved to   a different table we can do that  Um but the first concept here is um discontinuing stump removals Um this is  there's $250,000 budgeted a year for this is   dead trees dead dead stumps um a list of them  is bid out and there would be about 800 to 850   fewer tree stumps removed per year Um the next  one is that concept from police um which is in   in instead of impacting emergency response and  person's crime investigations which would be   to discontinue all shelter operations by 2027 So  this is on top of the field operations concept Um   number 22 and there's quite a bit of text here  um in background information that was provided   to us by the department Um it's to eliminate city  hall security in 2027 Um this would be there have   been discussions in the past about how city hall  security is provided Um what kind of staff what   hours and so forth Um but this would be um moving  this from being a police department function to   moving it to being a public works um function Um  there's not been I don't know that there's been   any discussion of this concept This would be the  first time This is a you you might complain that   you see the same things over and over again  but not this one This is a fresh one for you   to consider Um the next one number 23 this would  be reverting to aerial truck staffing as it had   been in the past Um because of the safer grant two  trucks were added to get to a total of seven And   then the staffing on those two new trucks and the  existing five was increased from three to four And   as I understand it that makes firefighting more  effective because instead of three people being in   one group they can split into two groups you now  have two groups of two for the sake of safety So this yeah this is the this is the this is a  model that was used before the safer grant   and we've got data that shows the impact of the  additional positions and what that's done in terms   of response time and on ground operations but this  would just roll back to what we had had previously   I'm we're not saying these are all easy decisions  and there are ramifications on all of these So   but I just you know again we're dealing with  pretty big numbers and we're trying to figure   out how to get there Okay I my my input here Uh  stump removal man I hear it in my district all   the time Um animal control already Yeah Not not  on board with that um aerial truck staffing I I   think that's a public safety issue especially with  the firefighters on the truck Um so the 26 numbers   here I don't I'm not on board with any of those  I'll also go on record I have no interest in item   number 23 I think that's an essential function  Um and I do have concerns about the other ones I   know we've talked about the only way that we're  going to be able to do that We could look at   other revenue streams but I have no interest in  eliminating um personnel from three units to or   from four to three Uh so that would just be a  non-starter for me A question So given that we   have a communitywide survey and we have the lower  right hand corner being the most important and   um or anything on the right side being important  from police services to fire services those are   our core functions then you have the lower 50%  why are there no suggestions from the lower 50%   in these scenarios so I would like to see the  matrix again and base it off of where people   in our community believe importance of services  are police and fire are the most important That's   public safety But then you have under 50% no  offense to you JB Johnston but golf being on   the lower 50% So can we talk about maybe the  things that are of lower importance and that's   where we would focus on reductions No that's yeah  that's a good point when we put assigned things to   the different tiers or the different tables that's  one of the concepts That's one of the frames that   we use to assign things So that's why you'll see  more park items that were in the first round than   over here right and so we get to the very very  bottom of the list and that's where this fired   truck staffing item appears Um when it comes to  golf that golf fund doesn't receive any general   fund support So but there are some other items on  the left side like planning is over there and they   have a revenue increase MABCD um swimming pools  we've already touched on trees are on the left   side and we've got two tree items I'm just seeing  the survey in my mind Animal controls on the left   side Animal control Actually everything on this  list except for the aerial truck staffing is on   the left hand side I believe Um yeah storm water  is close Yeah it's in the middle I'd also like to   point out left side of the list is that 65% Is  that how we drew up the quadrants i think it's   around is it six well I think it is in the 60s  Yeah I think theart library is close to there and   library is barely on the right side Right So it's  kind of an arbitrary line that we've drawn up as   far as the quadrants go because it could still be  55% over half of the city wants it to be increased   or sees the necessary um how necessary it is Um  but just because it we drew the line at 65% I   think that's just something to keep in mind moving  forward is that's the kind of the line that we   drew in the sand there not necessarily the line uh  most residents of Witchah have drawn It's a median   It was a median of results Um so the last two  items this next one here is to adjust the ERU fee   Um so the general fund the city of Witchah and  Sedu County both fund flood control It's in a   city county fund and it's a 50-50 split And so the  general fund that comes out of taxpayer support   The concept here would be to raise the ERU um  to so that the storm water utility transferred   into the city county fund for its 50% Um  and so in the case I know there's also been   discussion about neighborhood improvements  um being funded out of the eru Oh here we [Music] go Um so there al there's been discussion  about neighborhood improvements more neighborhood   improvements being um funded out of storm  water So either this increase if there was   an increase just for floodway those neighborhood  improvements would be pushed into the future or   there would have to be an a both an increase in  the ERU for both So that's what that concept is   Um and then the last thing um there's already $3  million a year budgeted to transfer in from the   stabilization reserve to the general fund  um for these three years um this would be   um just 282,000 on top of that Um we use that  to get to the 2.8 million that it would take to   implement this change So of course I mean these  are estimated amounts based on how much that we   expect in new construction and reappraisal growth  from our AV notice We haven't received that yet   We'll receive that in June and I know that will  be a big focus of the workshop that's at the end   of June But for for now these are concepts that  we have received from departments So wrapping   a bow on all of this and maybe leading  into the next discussion point as well   If we will still have to exceed revenue neutral  but let's say that we just wanted to collect CPI   new construction and we didn't want to make  all these cuts on this page and we didn't   have suggestions that supplemented these cuts  then the only other way would be to increase   revenues from another source Yeah or something  like a big hiring freeze you or coming up with   instead of doing this strategically you would  what we've done in the past when we've had big   revenue decreases is we just delayed hiring  So this is the more strategic approach So it   there's a there you'll see in the handout or  in the presentation that if one were to pursue   um a different source of revenue there's time  involved in it too So it would probably be a   relatively risky maneuver if you were planning  on balance if you if if the charge is to balance   2026 and you don't have an alternative revenue  source in place and you haven't picked these   concepts you probably need to pick some others  So you look at either other revenue sources like   a sales tax or like Councilman Johnson wants a  property tax increase Those would be the other   options to increase revenues for 2026 Yeah I think  that and even if a sales tax increase Mark will go   into there's there's timing issues I think that  even if you were to have a referendum this fall   I don't think he would start receiving revenue  until quite a ways into 2026 Okay Thank you So   it's the old adage about a bird in a hand worth  more than two in the bush Isn't that the adage so   yeah it's it's it's it's trick So those are the  concepts for 2026 Um just for clarification for   anybody watching we only would have to make these  decisions if we took in less than the total AV Yes Or if you needed if you removed  some items from the previous list   and you needed to plug your  hole you could consider one   of these But if we took in the total  AV we don't have to worry about this Yeah you wouldn't But but I think you took some  things off of the the first list didn't you but   I think they're mostly 2027 things I just I just  wanted to clear it up for anybody watching who   might be terrified of like number 23 or the people  who pay attention to the death threats some of us   have got here at city hall like that These only  really are serious if we don't take in a total   AV So if we go with a modified AV then we really  got to get serious about some of these items Or go   back and find different ideas Yeah Okay So city  manager can you address just the the situation   we're in i think um yes we're trying to balance  the budget for 26 but while I know that there are   suggestions to balance it in 26 I'm actually more  concerned about 27 And so we we still have to make   tough decisions So can you address how you're  using whether it's the matrix to make decisions   to address it with your 16 departments or because  I know that one of the suggestions that Elizabeth   mentioned was a hiring freeze and when I hear  it from community they tell me that the most   important thing is they want to make sure that  when they call 911 a police officer a firefighter   or an EMS worker will come out to answer that call  So can you address I guess how because these are   tough decisions No matter how you put it someone's  not going to be happy about the decisions that are   going to have to be made by this council How are  you prioritizing well Mayor the our priorities   have been set by you the council in terms of  your strategic direction And so you're right   We what's been in the magenta um over the  last few years has driven our budget process   and including the uh thought process that  we went through in trying to bring to you   uh some initial um uh recommendations or thoughts  for balancing the budget The if you look at what's   in the green and the blue we have brought uh some  recommendations to you We've also there have been   a number of program options that were subjected  suggested by departments that are not included   in this budget because they're not in the higher  priority areas Uh where we have some difficulties   are conflicts between those colored quadrants  and some of your um uh goals and strategies Uh   for instance if you look at the work that's being  done by the library library isn't necessarily well   actually I think library is kind of on the edge  isn't it where it's yeah right there libraries   actually moved uh uh from previous years let's say  parks for instance there are certain things that   uh and parks that we are not bringing forward to  you but at the same time you've got tactics about   making services available to low and moderate  income residents those who have the least ability   to um uh pay for our services that we and offer  them we still offer them park and recreation   opportunities So we can't just do a a complete  gut of the program so to speak The issue of   um uh a hiring freeze is one that we've kicked  around for the last 30 days but if you do it it   can't look like the traditional hiring freeze  It has to be done from a strategic standpoint   and be reflective of your goals So it would be  it would require a lot of review work Um the the   a hiring freeze is not um um what do I want to  say it it's not always fair to the organization   or more importantly to the mayor and council  because you may have high turnover in some of   your highest priority departments And so um and  we saw this during the recession when we did do a   hiring freeze We had a number of departments that  had a significant number of retire retirements   And so we lost a lot of expertise as a result  of that And those positions were frozen for   an extended period of time because the only ones  that were tr truly exempted were our field staff   on in police fire and somewhat in public works  Although public works still took a significant   amount So if we went to a hiring freeze we'd want  to follow your priorities both in this document   and there and then it would have to be we'd have  to have a target number that we're going to try   to achieve in that regard Uh but it's a it's one  way of downsizing the organization But there are   outcome problems with that and that's what we  would have to identify you for you If we were   to eliminate uh x number of positions in parks for  instance we'd have to explain to you what we could   not get accomplished changes we'd have to make in  park maintenance probably changes in recreational   subsidies some things like that So there a lot of  moving pieces Um but I will will tell you as we   put it together we were pretty mindful of what you  approved in the strategic plan as well as what's   um what we've heard now from two two years of  doing this exercise on our budget or our survey Sorry All right I think that you  all are ready to talk about sales   tax Already been hearing a little bit of  it So I'm going to pass the podium off to Mark Well good morning Mark Manning with the  Department of Finance So today my task is to   provide you about 40 years of history on the  sales tax hopefully in about 15 or maybe 20   minutes or so depending what your preference  is Uh so as you know in the city of Witchaw   we do not have a city sales tax Uh we are in a  minority in the state of Kansas in that regard   particularly with the largest cities in the  state We do of course have a countywide sales   tax from which the city of Witchaw receives a  portion That countywide tax was approved in 1985   here in Seduitick County Now that countywide tax  generates somewhere in the neighborhood of $140   million a year However what the city of Witchto  receives from that is based on state statute And   that statute allocates that sales tax revenue  half based on our population as a ratio to the   county And that's been pretty constant over the  years at somewhere in the neighborhood of 75%   a little higher a little lower but generally  75% The other half of that formula is based on   the amount of taxes each city levies relative  to the other cities That percentage has gone   down significantly for the city of Witchto over  the last 30 years which is to say that currently   we receive about 57% of the countywide sales tax  When it was implemented in 1985 we received about   65% So that percentage has been decreasing over  the years for the city but right now we get about   57% of it Now our sales tax here is what they call  a general purpose sales tax which means it's not   restricted for any specific use by the referendum  that was approved by the voters in 1985 However   a number of pledges were made in 1985 including  by the city And that pledge in 1985 was to spend   half of it for property tax relief and half of  it for roads bridges and freeways And the city   actually codified our pledge in an ordinance that  was adopted in 1985 And as I'll show you here in   a few minutes the city has basically adhered to  that pledge for the last uh 30 39 years I guess   So this is what the city's mill levy rate looks  like Remember 1985 is the pre-sales tax year Uh   you can see our mill levy rate was somewhere in  the neighborhood of 42 mills Uh you can see the   line drops significantly in 1986 That is the 8  mil drop that the city of Witchto implemented   after the sales tax was approved and began to be  collected Now the noise there in the next couple   years is mainly due to reclassification and  reappraisal that occurred at the state level   Uh there's a lot of girrations that happen in  the mill levy which would be a long topic for   a different day Uh but suffice to say that our  mill levy stabilized in roughly 1993 and as you   can see it's essentially been flat since 1993  and it's been flat at a much lower level than   it was in 1985 And again all of that what you're  seeing on this slide is a representation of the   city using one half of the countywide sales tax  to reduce our property taxes here in the city of   Witchto So I have a couple of slides to show you  the sales tax rate in Witchaw compared to a number   of our peers And again every city has different  needs Every city has different tax policies Uh   so this isn't to say the city of Witchaw is  good or better than any other city is just   to demonstrate the differences in the tax policy  here in the city of Witchaw compared to some of   our peer cities So there's 26 first class cities  in Kansas First class is generally larger cities   Of those 26 cities two do not have city sales tax  and that's Witchaw and Newton This graphic shows   you what the sales tax rate in those other 25  cities is Now obviously I'm combining the 24 that   uh that have a city and county sales tax in the  bar to the u to the right Uh but the takeaway   is the sales tax rate here in city of WTO is 7  and a half% 6 and a half from the state 1% from   the county In Newton it's eight and a half 6 and a  half from the state 2% for the county In the other   24 cities combined it's an average of somewhere in  the neighborhood of north of 9% And that's because   those 24 cities have an average sales tax rate of  about 1.47% and they have an average county rate   of about 1.25% And again they vary significantly  Yes ma'am Mark just also for context the mill   levy in Witchah is about 32.743 Newton's mill levy  is 72.361 just for context while we're comparing   Witchaw Newton Mayor I think you're about one  slide ahead of me but yes ma'am you are correct   Uh so anyway takeaway is we have the lowest sales  tax rate of any large city in the state of Kansas   and it's by a significant amount for the most part  uh particularly when you consider the uh cities up   in the Kansas City metro area which tend to have  sales tax rates in the plus 9% range So let's look   at uh just in Sedwick County There's 20 cities  in Sedwick County of which the city of Witchaw   is one 10 of those 20 have a local sales tax a  city sales tax You can see it's 1% everywhere   except for the city of Sedwick which is a half  percent So in other words there's nine cities   in Sedwick County that currently have a sales  tax rate of 8 and a half% Uh and again you can   see the city has no bar because we have no city  sales tax rate So what I did on this chart and   hopefully it's readable but I did plot the mill  levy rates of those cities in Sedick County that   have a city sales tax And the takeaway is they are  all higher than the city of Witchaw As the mayor   mentioned we're at about 32.7 somewhere in that  neighborhood Uh Kchi is down around 36% they're   by far the closest one Hazesville is about 40 Uh  but you can see the mill levy rates in some of the   other cities is a little bit higher than our 32  uh mills By the way we are the second lowest mill   levy rate within all the cities in Seduit County  Uh Viola Kansas is about 10 mills lower than us   They're at about 21 mills but I would point out  that they levy about 1,000th of the amount of   taxes that we levy So they're I don't know that  I'd consider them pure but they are lower than us   So let's do the same thing and expand out to the  MSA MSA I'm looking at Butler County Sumar County   Harvey County Reno County Sedick County Uh so  these are the largest cities in the MSA And   uh same story Uh these cities all have uh city uh  sales taxes Now Butler County is one of the seven   counties in the state of Kansas that does not have  a countywide levy Uh so you can see El Dredo for   example they're equal to us but that's because  they have the six and a half percent rate and a   1 cent city sales tax but no county sales tax But  takeaway is in the region uh the city of WTO is on   the lower end of the larger cities in our area And  I also plotted the mill levy rates and you can see   the uh same story there our mil levy rate is lower  than all the other larger cities in in our MSA area So with that I want to pivot to how  the actual sales tax works And you know   I I won't go into a lot of detail I'm not an  attorney but I can tell you how it works from   our standpoint And that is that the Kansas  Department of Revenue administers the entire   sales tax for the state of Kansas Uh there is no  flexibility uh there is no uh ability for locals   to interject themselves in that process It is  entirely uh regulated and administered by the   department of revenue and all that's based on  statutory provisions Now statutes have a number   of carveouts on what is exempt from the state  sales tax Uh they're voluminous Uh so the state   administers that the state statute also has  a few areas that are applied only to cities   and not to the state of Kansas Uh there's  generally about four areas there Uh one is   utilities Uh but the other one that's probably  the most relevant is food and food ingredients   which I'm going to call groceries Food and food  ingredients is what it's called in statute but   effectively it's groceries Now you may know the  state of Kansas exempted their sales tax from   groceries and phased it in over a couple years  and I think it took effect finally in January   of this year Uh but based on state statute local  taxes are still applicable to groceries So for   example if you go and you know buy your groceries  at a local grocery store right now you will see   a 1 cent 1% sales tax on your receipt That is the  countywide 1% sales tax that you're being taxed on   And again that's based on state statute There is  zero flexibility for local units to uh change that   It would have to be a statutory change You might  wonder how much of that impact does that have on   a family in Kansas Now every family in Witchaw is  different in Witchaw I should say Every family is   different So I am you know I'm doing a gross  average And I recognize that many differences   but if you look at an average family uh we would  estimate that an average family would spend around   $5,000 a year on groceries Again wide variation  but that's that's what the average family would   spend By the way I did a lot of research but  one thing that was particularly useful was some   research that the Kansas Health Institute did when  the state was considering their sales tax And I I   uh trying to think what the right word was I don't  want to say I plagiarized but let's just say I uh   utilize how about utilizes better I utilize some  of their research in this regard I also looked   at a lot of census data United States census  provides a lot of income data and stratifies   it by source So again this is the best we can do  We would estimate that a half cent sales tax for   example would cost an average Witchto family about  28 bucks a year which means the countywide tax is   char is costing an average family about $56 a year  right now So is that a family of five uh you're   getting into a level detail I can't answer It's  a average family That's the statistical average   family that the United States Census uses So okay  So family of 4.4 I guess probably Yes Like I said   if you're you know if you're a senior on your own  your family size will be different If you have 10   kids your family size will be different But it's  just a homogeneation of a bunch of data to come up   with an average Thank you Anyway takeaway is half  cent sales tax would be roughly about 28 bucks   a year to a average family So how is a sales tax  implemented and again everything here is based on   state statute And there's a number of things that  have to occur in a certain sequence And there's a   number of statutory dates that have to be adhered  to But the first thing that has to happen is the   governing body has to adopt a resolution  authorizing a referendum And again that's   what happened in 1985 here Uh once that occurs uh  the next step is to coordinate with the elections   officer across the street and place it on the  ballot Again the election officer has certain   timelines in which they want it prior to uh the  next election cycle uh but has to be provided to   the election officer And then finally obviously it  is put on the ballot uh at the next election for   voters to approve or disapprove Uh this process  generally takes somewhere in the neighborhood   of 90 days from start to finish Uh you know it  could take a little longer although if I remember   correctly I think the statute requires it to  occur within six months of a referendum uh being   approved So takeaway is this process would take if  if if a city decided today to approve a referendum   maybe it would be approved 90 to 180 days out So  a quick question mark Um now there were there was   a new law passed on the state legislature last  year that consolidated I believe all elections   into the fall Um so I I we might look into this  This is something that they did pass last year   Yeah So it's pretty new I don't know if this would  fall under that So if we went along this timeline   and got it placed let's say next year it would be  would it be the primary in August or would it be   the general election in November just a question I  think to to look into or is this that we can still   do it whenever we want to I guess I'd answer you  this way What I'm telling you is what the timeline   is from approval referendum to the election But  what I what I'm not telling you is the answer to   your question What are the options for what  a election date is and I'd have to defer to   uh others or do a little bit more research  to find out what those options are but Okay   Appreciate that Now I imagine the political  landscape has changed quite significantly since   1985 but the results of the 1985 election  to were 54.66 in favor and 45.34 opposed So this is what would get something on the ballot  to get approved Unfortunately that is not the end   of the process Oh by the way a few things that  to take into consideration in a referendum Again   the city based on state statute can have a  general purpose tax any city of up to 2% For   example I noted Newton had a 2% uh sales tax  In addition to that the state statutes allow   a city to have a special purpose sales tax of  up to 1% So in theory a city could have a 3%   sales tax Now I'm not aware of any I didn't have  looked at every city but I'm not aware of a city   that has a three% city sales tax but it would  be possible under statute Uh sales tax can be   uh approved in increments of 120th For example you  could have a 0.05 or 120th percent of a sales tax   if you chose to That's pretty uncommon uh but it  is common to have a you know a one and an eighth   percent sales tax which is 1.125 for example  So basically that statuto provision allows   you to do sales tax in eights if you choose to  Uh now once a referendum is approved there's   another lag time after that The next thing  that the uh entity has to do is notify the   uh department of revenue because they're  responsible for collecting it Department   of Revenue requires 90 days of notification prior  to implementation but they also only imple they   also only implement on the first of a quarter  So again depending on your timing it could be   another 180 days from the Department of Revenues  actual implementation from when a referendum is   approved And then finally on top of all that when  Department of Revenue starts collecting it usually   usually takes about two months for that revenue  to reach the local unit So the bottom line is   uh you're looking at a lag of maybe 10 months  maybe 12 months maybe nine months Hard to say   but it's it's not immediate I guess would be the  point I would make Uh so let's talk about the two   kinds of sales tax briefly Special purpose and  general purpose Again a special purpose as the   name implies is for a specific thing Uh think of  the interest bank arena sales tax that the county   uh implemented in 2005 That was a specialurpose  sales tax It was specifically to develop the   interest bank arena Uh it also had an expiration  It expired in 30 months Uh so it's an example of   a sales tax had an expiration By the way special  purpose sales tax by statute have to expire in   at least 10 years They can expire sooner Uh but  a special purpose tax must have an expiration   Contrast that to a general purpose sales tax which  again is what we have here in Seduit County Uh   that obviously is for general purposes although  it's not uncommon for the intent to be expressed   by an ordinance or a pledge which again is what I  mentioned earlier that the city of Witchto did in   1985 And so the 85 Sedick County sales tax is  a good example of a general purpose sales tax So let's pivot to how much money a sales tax would  generate here in the city of Witchaw And the first   thing I would tell you is it's a little bit of  a challenge to estimate uh because the city of   Witsaw is not a specific taxing district for  sales tax So you have to take a lot of data   from the Department of Revenue and kind of make  some estimates based on it And I would also tell   you that a lot of the data that the Department of  Revenue has as you would expect is confidential So   we have to be careful on what we do and say with  that data Uh but the bottom line is we believe   a 1% sales tax in Witto in 2027 and I use that  because of the lead time would generate somewhere   in the neighborhood of $115 million a year And  you can see I just did the math and provided   uh different options for different uh portions For  example a half cent maybe generates somewhere in   the 55 $60 million range Uh I mentioned earlier  the city gets about 57 and a.2% of the countywide   sales tax One estimate I used in this table  is department of revenue estimates that of   the local sales tax here about 76% is actually  generated in the city of Witchdaw And that's   basically what this estimate is reflecting here  So in other words we get what 20% less than the   sales tax that's currently generated within the  city of Witchdaw Uh the other thing I probably   should have pointed out I mentioned the county  generates about 140 million in sales tax Now   uh there's a thing that they call the pull factor  that Department of Revenue does a lot of reports   on every year The pull factor is how much sales  tax are you sucking into your community from folks   that live outside the community and that's going  to vary around the state uh in Witto Department of   Revenue they have several methodologies but they  estimate the pole factor here to be somewhere in   the 20 to 30% range Meaning that $140 million 80%  of it is paid by local residents for example and   maybe the other 20% or so is is paid by visitors  to our community Of course we are a a economic hub   for South Central Kansas There's about a million  a little over a million people that uh live   uh within 100 miles of city Witchaw So it stands  to reason that we would have a fairly significant   pull factor here So I want to finish up here with  just some examples on how a sales tax could be   used And these are obviously as you'll see kind  of based on what happened in 1985 Uh one thing   a city sales tax could be used for is to reduce  our mill levy rate Uh again we did that 1985 we   use five million for a mill you know recognize  that number is going to go up every year and   but somewhere in the neighborhood of five five  and a half million a year probably is what a a   mill generates Uh there's a couple complications  You know our tiff districts would suffer if our   mill levy decrease because that increment is  based on our city mill levy So it would be a   marginal effect on the tiffs but we'd probably  want to think about that a little bit Uh motor   vehicle tax is a very complicated formula but  it's based on the average mill levy in the county   So if the city reduced our mill levy the average  mill levy would go down So our motor vehicle   would decrease a little bit These are marginal  around the edges things but just things that we   would certainly want to consider Final thing  I should point out is I mentioned the state   statutory formula that allocates how sales tax is  distributed to the city and I mentioned half of   it is based on taxes levied So obviously if the  city reduces our taxes levied that portion of   the formula would decrease which means we'd get  less of the countywide mill levy Except you may   remember last year the legislature uh worked with  Sedwick County our partners are at Seduit County   and actually amended that statute to freeze the  taxes levied portion uh because the county raised   a good point and that is that cities are penalized  for and the county for reducing their mill levy   rate And so the legislature actually froze that  half of the formula uh which means that the city   would not be faced with that if we ro reduced our  mill levy which would be a good for the city Uh I   just point that out because you know that formula  is subject to the uh will of the legislature So   if that formula was ever amended again it could  be problematic for the city But currently that   formula is not problematic for the city We would  just want to look out for the impact on tiffs and   maybe a little bit on motor vehicle taxes So what  would a half cent sales tax cost for an average   family in Witchaw this is my hypothetical average  family Again uh we mentioned the food portion   uh an average family in which again I'm going  from the data $70,000 roughly they spend if   you stratify that by what's taxable and what's  not taxable roughly half of that consumption is   taxable you know things like your haircut or  your mortgage payment or your rent payment or   your doctor's office co-pay and a variety of other  things is not taxable based on state statute but   roughly about 50% is so maybe an average family  has about $35,000 worth of consumption that is   taxable Uh so if you do the math there that means  that a half cent sales tax would probably cost an   average family somewhere in the neighborhood of  maybe $176 Again recognizing there could be wide   variations based on what the actual income level  was But again I you know I'm just providing you a   homogenized estimate of what a half cent sales tax  would cost an average family To kind of put that   in perspective what's an average family that owns  a home here in Witchaw what do they spend in city   property taxes of course they have to pay county  and state taxes of which we have no control Uh   but currently an average home in Witchaw pays  somewhere in the neighborhood of $816 a year in   annual property taxes to the city of Witchah  So just to put uh all that in perspective on   this slide here Mark may I pause and just ask a  very quick question and so what I hear this slide   saying is is that the average family pays $860$16  in property taxes And if we did a half cent sales   tax it would be 176 So it looks like a a great  savings Correct Well not exactly Sorry The 816 is   based on our current mill levy of 32 mills So it  would depend on how much lower that mill levy was   lowered compared to 175 Okay And I think you're  a slide ahead of me too Okay I'm sorry And then I   I'm 99.9% sure I know the answer to this question  but I'm just going to throw it out there I think   of maybe some of our um you know seniors or or  vulnerable populations who don't pay property tax   They have rental or other you know arrangements  Granted if property taxes go up landlords renters   renters usually you know pass that along but  that this is that isn't taken into account in   this in any way Correct Uh yes ma'am you are 100%  correct I'm not 99.9 100% Okay Thank you I'm just   using average data to demonstrate hypothetical  situations but you're right There are a number   of of nuances that would impact this at all Uh so  I guess since you mentioned that council member   Tuttle I'll go ahead and uh I'll go ahead and  uh tell you the uh what's coming up in the next   couple slides uh about a six mill decrease would  be roughly the $176 on an average home in Witchto   Um real quick uh can we get a is there a way we  can get a breakdown on how this impacts people   more by economic levels like a family who makes  $40,000 a year as opposed to 70 Is there any way   we can get some numbers akin to that you know  that's a real challenge because I I just don't   have the data The census data is based on an  average family and you know I'd have to know   what an average family that earns $40,000 a year  or what they spend their money on No doubt that   mix is going to be different than what the average  census family is that you know I just you know   it's it's difficult to do that but a six mill  decrease to uh property taxes would equal about   176 ballpark Yes sir Yeah I if you Yeah if you  own the property Well right Yeah Your couple slide   I'll get to that slide here in a couple minutes  but yes you kind of you uh so what's another   option for the sales tax again we used it in 1985  for uh capital infrastructure Uh that is an option   Uh now we have a significant amount of public  safety infrastructure needs over the next five or   six years or so uh this is uh police stations fire  stations fire apparatus police equipment police   training centers and a variety of other things  Now currently these will be funded from general   obligation bonds within the CIP We do have limited  capacity there and what you're going to see there   is that's going to impact our ability to fund this  91 million in a timely manner Projects may get   pushed out into latter years uh may get deferred  uh you know we've committed again to station   building programs some other things but all I'm  saying is since it's general obligation funded and   since there's limited capacity there it will be  a challenge to incorporate that entire 91 million   uh within the uh proposed CIP that we will present  to you in July Uh you know we'll do the best we   can but it it likely some things will be deferred  or pushed out Obviously uh a sales tax would   change that scenario significantly if it was uh  used for public safety infrastructure Uh it would   do a couple things It would reduce our general  obligation cost of providing this infrastructure   which means we would need to borrow less money  paid back by the debt service fund which is   supported by the property tax mail levy It would  also provide us the ability to accelerate those   project as I noted before because we wouldn't  have the funding constraints necessarily that   we would have with using geo funding And finally  more than likely we would pay cash for all of   these improvements Uh that's probably how we would  time it Uh so that would significantly improve the   viability of the debt service fund by lowering  our debt lowering our future uh debt service   requirements and allowing us to pay more cash for  go projects which again just kind of perpetuates   itself So now council member Glascock brought up  some questions about the mill levy debt service   fund Excellent questions Uh I'd have to model a  lot of that but fundamentally what I'm telling you   is a debt service fund would be in a lot better  shape progressively as the years went on and there   would be some flexibility probably to look at mill  levy rates in the debt service fund at some point   into the future Uh finally and you know obviously  this is coming from a finance person because we   like to have stabilized city finances Uh but  a sales tax would have some advantages to our   financial structure here at the city of Witchaw uh  advantages as I noted previously that we typically   do not have compared to a lot of our peer cities  in the state of Kansas and in the region Sales   tax revenues would actually smooth out our ups and  downs in our general fund And that's because on a   correlation basis the ups and downs of a sales  tax are not well correlated with the ups and   downs of a property tax which is good That means  when property tax goes up a lot sales tax doesn't   go up so much when property tax goes down sales  tax generally doesn't go down and vice versa Now   I think statistics was one of the classes when I  took at the university that I did not make an A or   B in So I am by no means a statistician Uh but I  do know how to do regression analysis And you know   the R squared if you're up in the high 90s that's  very highly correlated That means if something   goes up one the other variable is probably going  to go up about 90.99 the correlation of sales tax   uh revenues to our property tax revenues is 05  which is clear down on the other end of the scale   which tells you again that they're not highly  correlated The benefit to the city more smoothness   in our revenue streams over time which helps us  maintain stable service levels and we kind of get   away from some of this up and down that we've  had the last few years Again would also allow   us to focus on strategies that are important to  the city council i.e Uh we mentioned earlier one   of the pillars is keep WTO safe Uh I mentioned the  amount of capital investment that we have upcoming   in our public safety and particularly our law  enforcement uh arena And then finally I mentioned   it would help us stabilize our general fund You  know the challenges there Elizabeth provided a   whole bunch of slides on that so I won't go into  that So it would stabilize our general fund but   it would also stabilize and improve the situation  significantly of our debt service fund which are   two things that would be really beneficial I  guess that's my last slide So I know I threw a   bunch of information and I think I probably took  a lot longer than 15 minutes So sorry about that   Uh but I'd be happy to answer any more questions  if you have any I think you have a thought piece   It's six or seven pages long too So few additional  just quick questions Mill levy this body could do   and just dictate to the public an increase However  sales tax require the public buy in of what their   level of taxation would be That is correct  Sales tax requires a vote by the electorate   in a referendum and property tax can be set by  the governing body when they adopt the budget   Okay So I did try to do some quick math here just  for talking point So let's say we do a transfer   of let's say it's a 1% sales tax and it's at six  mills which would stabilize what their an average   family would pay in property tax versus that That  would leave about $34 million a year to cash fund   projects Would that be correct 1% Yeah Well 1%  would generate somewhere in the neighborhood of   115 million Uh so depending on how much you wanted  to divert to capital improvement infrastructure   but I think your mill levy reduction probably be  significantly higher than six mills again based on   the policy direction because everything I showed  you here including six mills was based on a half   cent Okay Thank you Mark One thing Um Yes sir Are  we pretty similar to Johnson County with structure   or not similar in what regard as far as a county  and cities cities within the county Well I think   I think Johnson County has a lot less rural area  than Seduit County does for one thing And they're   a little bit more affluent up there and their  assessation is considerably higher than ours   per capita If that if that answers your question  I I just noticed their mill levy was substantially   lower than ours That's because they have a  significant amount of assessed valuation up there   Their property valuation is significantly higher  per capita than here in the city of WTO Yeah Okay   Yeah Okay Thank you Mark I'd be very interested in  looking at pursuing this if it if the will of the   body is there given that we could also reduce  the property tax evaluation for individuals   some of the points in your handout that you gave  us as well that I'll just highlight and you talked   about it but I think this is highlighting again  for the public balancing these two sources would   likely produce more consistent and less variable  revenue growth in the general fund over the long   term which I think would help stabilize a lot of  our um service levels in the future uh you talked   about this to create a more balanced revenue  portfolio and then you conclude and I think   this is significantly important as well is the use  of a city sales tax to cash fund CIP expenditures   would likely be viewed very favorably by the  capital markets and rating agencies This would   significantly reduce the city's general obligation  debt provide flexibility to cash fund future   capital improvement projects beyond 2031 and we  would be letting the voters determine uh whether   or not they want to move forward on this So those  are I think some highlights that I wanted to pull   out from the presentation and thanks for your work  in preparing this too We don't uh we don't have   any room to improve with S&P but uh I would hope  that the other rating agency which does not have   us rate rated the top tier would look favorably  upon us if we did something like that We would see   just a couple of thoughts here Um there's a lot  about this that I do like I do like the emphasis   on public safety I think that's definitely  something we need to uh look into The concern   is the $176 for the average family And I know  that if you're a property owner that's balanced   out essentially zeroing that increase out Um but  I I think about the families that are renters you   know and how much of a bite that's taking out of  their budget So if we move forward on this I would   like to explore a little more about you know for  instance making the homestead um tax exemption   permanent Um that's something we have done in the  past but that would be for low-income seniors and   whatnot Um potential rebates you know if we could  set up some sort of rebate for families who do   get hit a little harder with this Also um I don't  know I know it's late May probably a little early   to get on our legislative agenda at this point but  maybe if we can make it a point with the the state   legislature to allow us to take off the taxes on  foods that way we're not required to it Um I had   a little more giddy up in my step about this when  uh before I I knew that um the tax would still be   on food So um that is something I think maybe we  can discuss here as a a body if we continue to   move forward on this And I'd also be interested  in lobbying the state to look at the sales tax   exemption for food Thank you Mark and Elizabeth  Really appreciate all your work Mark I may set up   a time for us just to maybe go over it I have some  questions that I won't you know drag everyone else   down with just so I can make sure that I get my  knowledge level up I like the idea I think it's   an interesting concept My only concern and and  I've said from the bench consistently that I would   never want a sales tax increase to fund operation  of police and fire right and I know that's not   what this is This is for capital for police and  fire but I would want to see maybe some backup   plan contingency I'm not sure what the word is  And you and I can have another conversation What   if we did have another recession and we capture  less sales tax meaning even for capital projects   for police and fire could have to be delayed or  halted That's just a little bit of worry I'm not   saying we can't get through that I would just want  to see that I worry as much about operations of   our police and fire as I do our capital projects  So I just I'll get with you and we can have some   further discussion I I will address both those  because those are both very good points and I   think it's in the material but I didn't talk about  it specifically Uh I would agree with you using a   dedicated sales tax to fund a specific operating  purpose I don't know that that would be the best   idea because of exactly what you said You know a  lot of our operational costs go up consistently   year-over-year particularly ones with a lot  of staff you know staff is 75% of our general   fund and I think you would be putting yourself in  risk if you funded a ongoing operating cost with   a revenue stream that we know has variability Uh  but that is exactly why it is better suited in my   opinion for more uh general fund as large purposes  or specific capital improvements because we could   easily manage the cash flow needs on capital  improvement projects over the up and downs   of a sales tax And in fact we've been doing that  for 40 years on Kellogg for example Uh but that's   one thing I would uh mention I would also talk  about I should talk about limited term A limited   term as I noted is much better suited for capital  improvement projects like the interest bank arena   Uh it is not well suited for ongoing uh programs  like a property tax relief program or a operating   budget program Uh in fact that would be a very  bad sign probably to our rating agencies if we   did something like that because by definition  it's going to expire at some point which means   our f future would be somewhat perilous if we if  we funded operating costs with a non-recurring   source But those are two nuances that I think are  in the report but I didn't mention So I'm glad you   brought that up Thank you I am supportive of going  forward with this Um as I've shared my concerns   about our city budget this is a potential solution  So I am supportive of going forward with the   conversation and coming up with some more concrete  things that would be funded Mark I do ahead I   do have one question So let's you know I think I  feel some energy that this is maybe a direction we   should explore But ultimately it's our residents  who make the decision So do we build do we build   the 26 budget without this and just assuming it's  status quo and then we assume that this would   happen in 27 is is that assumption correct i think  you have to because on July 15th you will set the   maximum levy in your taxing funds Now you can go  down from that but you can't go up and then you   will approve those levies on August 25th Well you  know I'd mentioned the time frame for a referendum   It's likely not going to happen by August 25th So  you probably don't want to base your taxes levied   for next year based on any presumption at all  Which is to say the answer to your question is   no You probably don't want to base a 26 budget  on any prospective sales tax and based on other   communities I mean sometimes it takes them years  to get per the community educated on I mean so   it could potentially not even be this November's  referendum Okay Thank you Yeah I wouldn't support   anything until the voters actually vote for it but  uh I'm very interested in this Uh I would rather   uh fund CIP projects through cash rather than  borrowing Um I think it's a definite need Uh   if anybody's gone through some of our firehouses  and police stations it is a huge need uh that we   need to to rebuild those and uh and refurbish  them because they're they're not in good shape   So I would be in favor of funding those And also  we we do need property tax relief We do People   have been screaming about that It's consistent  It's loud Um we do we do need that as far as uh   lower income individuals and you know we we serve  those individuals at Gualupe Clinic every day and   uh they they spend almost all of their income on  rent and food So eliminate that 1% yes that would   be good if we could lobby the state to do that but  they're not going to be affected by this but very   much so they don't have a lot of disposable income  So uh I think this is a good strategy to uh fund   uh projects with cash uh number one Number two  reduce uh property taxes and uh it it could give   us additional revenue too I think And 20 to 30%  of it's going to be paid by people outside of   Witchaw I've said this for a long time that the  bedroom communities around Witchaw and I know   some people live here in those bedroom communities  but you know the maze the GDDARD the the Valley   Centers the Andovers the Hazesvilles they all  use our services they all use our streets they   use our library they they use a lot of things  that we have our park systems um and and they   don't they don't pay much for them so it would  capture some some of that revenue from them also Mark I would be interested in more information  before I even make a decision because um the last   time that we had a sales tax really was Interest  Bank Arena and that sunset it So one of the things   that worked with that sales tax was there was  something promised money raised and the project   completed So there was a a success record Um and  I think that that's part of the reason why I think   some of the council members mentioned they're  okay with this because it's a capital improvement   project So you see land nothing there you make  a promise there's going to be a fire station a   police station and then it gets built and it gets  sunseted So I I would like more information on   um if you can find I think we had another uh  question posed to this community after the   interest bank arena uh tax but it failed So I  think we need a little bit more information on   why it failed what was promised back then  that didn't um didn't meet what community   wanted because I think that again when it comes  to public safety that is what community wants us   to focus on and I said it earlier when they call  Cedric County 911 they expect Cedric County EMS   or Witchaw police or Witchaw police uh Witchaw  police or fire to arrive So I really think that   when it comes to things like this if they go back  to what our core services are we can communicate   um about the need but also a sunsetting of that  specific tax Again mayor I would agree with you   Uh if the objective is to have a limited term  it's much better suited to exactly what you said   tangible physical capital improvements I just add  a couple comments um that we've seen the last two   um attempts at the um the school bond and  the previous um sales tax that failed Um and   personally I believe that it was didn't have good  strategic campaigns that all seemed very rushed   I feel like November is a little bit rushed but  I am interested in learning more I just want to   make sure that people have enough time to engage  get all the information that they need um before   they vote And I would say um as a council we need  to have a clear understanding on how it would work   what it would fund how it would fund it and if it  sunsets or not And until we can the majority of   us can agree um I don't think we should be moving  forward I want to make sure that we're all able   to articulate well to the public um especially  before we ask for their support So thank you   Quick question Mark regarding the mayor and I  think uh Councilwoman Ballard's um question about   suns setting Could a portion of the mill levy  reduction be permanent to help with um ratings   and then the CIP portion be sunsetted so the mill  levy reduction could go in perpetuity and the CIP   could be sunseted That is a fantastic question  which I did not anticipate Uh so I do not know   the answer whether that'd be one referendum or  two Uh it's probably something we'd have to take a   look at Okay But I understand exactly what you're  saying So it' be one question And then uh second   question this theoretically if we brought it back  before the public and obviously more discussion is   going to have to happen before we do that anyway  If we tie this to mill levy reduction as well both   the bond issues that failed recently did not tie  that to a mill levy reduction Correct That's my   understanding Yes sir Thank you And I will say  that council member Valor and the mayor's points   are very good because we've studied a lot of other  cities Oklahoma City is a fantastic city to study   if you want to study sales tax and they do exactly  what you're suggesting They have long runways of   engagement uh they find out what the community is  interested particularly in the capital improvement   space and then they issue referendums and you know  they do that consistently continually actually and   some pass and some fail but they implement what  is the will of the population Think of the maps   area downtown Oklahoma City Yeah I've I've studied  that and looked into it a little bit Um I think it   um shows that it has been successful in other  areas and I think that it has the potential to   be successful in Witchah I just want to make sure  that we're doing enough community engagement and   asking for feedback because these are essentially  the people that will need to be supportive of it   So thank you And just to follow up on that from  we did a city to city tour to Oklahoma City   several years ago through the chamber and it's my  understanding and please anyone correct me if I'm   wrong but the city of Oklahoma does not lead the  sales tax um education campaign right it's done   by a local grassroots coalition So even if this  is something that was our desire that it would   be a ballot initi initiative you know to go on and  like I said I don't even think it would happen in   November 2025 It would probably take longer But  if that's something that the community felt was   important they would have to lead that initiative  The city of Witchaw couldn't champion it Y Okay Well thank you I apologize I think  I went a little bit over my 15 minutes All right Um so what happens next this is an  an interesting way to start the week Come back   from a three-day weekend We're going to  continue monitoring revenue data and all   these strategy alignments across divisions  We'll be working on that And then also we've   been working on resident engagement The budget  simulator has been open since earlier this month   that'll be open through August And so far  we've received quite a bit of engagement   um through that tool And then also we have more  I think preliminarily there's some community   engagement that's being considered for June So  your budget calendar So in addition to there   will be a final budget workshop in June Um we will  share the assessed valuation at that time Um and   we will update the handout that we shared today  based on the feedback that we've been getting   Um so that workshop's on the 24th and then on the  tw it seems it seems like a long time but it goes   very quickly The budget will be presented on July  15th Um and that at that meeting um you will take   it it's one agenda report but you'll take action  on the authorization to exceed the revenue neutral   rate So that is a thing that um results in a form  going to the Sedric County clerk that says you're   considering exceeding the revenue neutral rate  and also that time um the publication of notice   is approved and the maximum taxes to be levied So  that sets the ceiling for taxes to be levied for   2026 on that day Um and then we have a number  of public hearings um in addition to what's   required of state statute Um there's an evening  one on August 7th Um there's one on August 19th   which is really the last best time for people  to provide feedback on the budget Um and that's   also when the simulator closes And I say that's  the last best time because it's really hard if   people provide us feedback for the first time on  the August 26th to turn around and include that in   the adopted the budget that will be adopted by the  city council Um just a little bit on the simulator   So far I think we're we've topped 200 people  who've um completed budgets Um the feedback   has been it's really difficult to complete a  budget and none of these ideas are good ones   So it's kind of like the workshop So um but just  you know it we it's it's a trick because people   can go up and down on those high priority areas  and just decrease on the lower priority areas   Um there's just generally speaking a lot of  support for street maintenance and things   that are associated with street maintenance um and  for parks and so that's some feedback we've been   getting so far But yes we're like yeah I'm a real  popular person So um so then on August 26th um in   accordance with state statute we have to adopt  the budget between a certain certain dates Um   so that's when there will be the public hearing  Um and then you will set um the tax rate for next   year and adopt the budget So that's what's coming  up next Um just what what you'll see what we'll   be working on is um I think we'll confer on the  feedback that you provided today regarding those   the tables of options and start incorporating  some of the ones that like the health insurance   rates that there was consensus on um bring back  more concepts next time and let you all know what   we're seeing in the simulator and then what um ESS  valuation notice is So um there's a lot to be done   I'm really appreciated appreciative I think we're  all appreciative of your feedback and guidance   and your attention It's a long workshop but um  it really does touch everything So thank you Mayor That's uh that's it Thank you again  Elizabeth and Mark for the presentation A   reminder on that slide August 7th is not a  Tuesday it's a Thursday That is due to the   elections that are happening for August 5th And  so that is the third nighttime meeting The second   nighttime meeting is actually next Tuesday So next  Tuesday again will not be at 9:00 a.m So uh tune   in or come to city hall Tuesday Maya uh June 3rd  June 3rd at 6 p.m Thank you Mayor I will just for   those who are watching um our primary topic on the  June 3rd will be a property maintenance code and   revisions to our current property maintenance  uh rules and regulations and ordinances