Based on the context provided, here is the transcribed townhall meeting with speaker names added. [0:03] **Mayor Jim Michalski**: All right, I'd like to open the meeting. This is a Truth and Taxation public hearing for December 19th at 6:01. And first item is the budget presentation. So all of you have received the 2023 final budget presentation in a hard copy form. [0:15] **Ellissa Owens (City Administrator)**: I will at this time go through it. What I'm going to be reading along verbally is the 2023 data. I have included 2022 figures just for representation of year-over-year. If you have any questions along the way, please feel free to stop and ask. [0:50] **Ellissa Owens**: Um, so with that, the budget presentation will start with the revenues. So for general property taxes in 2023, you're budgeting for 640,012 dollars. For sales tax in 2023, we are budgeting for 225,000. [1:10] **Ellissa Owens**: Local government Aid—we've been made aware that it will increase 24,261 dollars for a total of 989,310. In addition, the transfer from Power and Light—this is the general rate extension on everybody's utility bills—this is something that was increased through the previous City administrator, and so with that, those increases and pass-throughs, um, that is moving to 250,000 in 2023. [1:42] **Ellissa Owens**: In addition, Campground fees for 2023 have been budgeted at 150,000 dollars in Revenue. [2:00] **Ellissa Owens**: The expenditures include an operating transfer to the DMV in the amount of 20,000 dollars. A 3% cost of living wage increase is included in the budget. Health insurance budget has been increased 25 percent and the electric utility rates from the budget have been removed in a total of 180,000. [2:28] **Ellissa Owens**: The next slide goes over some of the department expenses. For Department again, I will read the 2023 budget. Any questions and or differences, please feel free to ask. For General government, the total expenditure in 2023 will be 291,800 dollars. The Council budget will be 42,175 dollars. For City Administration, we're looking at 293,300 dollars. Elections has been removed. The Center expenditure budget will be 41,815 dollars. The police department is 682,200. [3:17] **Ellissa Owens**: Building inspector is 26,500. Public Works is 216,950 and the recycle shed is 16,725 dollars. I will note if these are about to capital projects—includes those will be listed later. Some of the highlights as far as what you're seeing the differences if there's any overages: again, the health insurance is really impactful on our 2023 budget, the health insurance premium increases. In addition, our workers' comp insurance premium has gone up, and so we're kind of playing catch-up from a budgeting standpoint with that. In addition, um, there was a wage increase for Council. [4:02] **Ellissa Owens**: And um, the Public Works budget includes 5,000 dollars for Street striping. That's something that hasn't been in the past but that we are going to include for the coming year. It's not a part of capital, just a part of overall expenditures. In addition, we're also including monies for one pet draft Improvement within the Public Works budget. So um, those are all contributing factors. Again, um, any questions specifically I can absolutely answer them as far as differences year over year. Keeping on with additional Department expenses: Depot has a 2023 budget of 9,000 dollars. [4:49] **Ellissa Owens**: The campground has a budget for expenditures of 96,900 dollars. A side note on that one: the difference that you're seeing is we are having to um, we've rebudgeted for sales tax, which is not something that was um included previously. In addition to sales tax, we have some other line items like our credit card transaction fees that have gone up since we're utilizing the online system. Um, our garbage bill has gone up significantly and we've kind of re-accommodated for that, and a little bit of computer and software as well contributed to the overage, and that has to do with us utilizing the new online platform. So that is what you're seeing there in the campground. The garden budget for expenditures for 2023, you're seeing 22,500. For the library, you're looking at 82,550. The cemetery is 19,350. Cable TV 41,497. [5:59] **Ellissa Owens**: And Riverside Arena 87,150. A couple of highlights from this page: um, as far as the cemetery is concerned, what we've done—and this affected the campground budget as well—is we've actually started expensing fuel to each department when it's utilized within that department. So mowing at the cemetery, mowing in the campground, those are all actually being expensed per Department which they have not ever been previously. So it gives us a really good visibility into the operating expense of each department, but it did affect our budgets as far as now we're budgeting for fuel within those departments versus it just kind of disappearing within the general fund. [6:48] **Ellissa Owens**: So that's really significant. When we were looking at a 80,000 deficit and then kind of referencing some of our previous communication from earlier within the regular council meeting, we are attempting to increase our Revenue as well. So the 11,000 dollars from the Hockey Association year over year... at a potential Community partner between that, we're using our expenditures and increasing our Revenue, we're getting really close. So excellent progress within the Riverside Arena Department. Next we'll look at capital projects per department. So um, what wasn't listed in the expenditures previously were these capital projects: the relocation of the recycle shed at 15,000 dollars has been budgeted for as a capital item. A bath house renovation for 14,000 dollars has been budgeted for. We have set aside 150,000 of the 180 from the electric utility expenses for infrastructure development. School property purchased for the old school Forest has been budgeted at 30,000 dollars. Public Works: a toll master trailer at 23,000 and a new trench box for 10,000 dollars. The police department: 15,000 dollars for tasers. And then the community center: we have the um, the purchase of one new rooftop unit which we've been doing year over year and then the installation of two. So the one that was purchased last year but labor was over the top, we've now budgeted for the install of two and then purchasing one more. This is just kind of the next page, it highlights just a different viewpoint and it gives you a year over year as far as those projects per Department. [9:06] **Ellissa Owens**: So um, I won't necessarily go in per because these have been highlighted on the previous slide, but I just wanted you to have visibility into the difference between 2022 and 2023. And then again it gives a department breakdown overall if you're looking at our expenditures—or excuse me, our capital projects—for 2023 versus 2022, very, very closely aligned. The difference is 13,400 dollars, so very close year over year as far as what we are extending for capital projects. The next page is a budget summary. So for 2023, you're looking at a total 2,570,213 dollars. For operating expenditures, you're looking at 2,238,469 dollars. The capital projects have a total of 287,000 dollars. In total expenses, 2,230,469 dollars for a net income of 44,744. [9:53] **Ellissa Owens**: They're trying to utilize as much as we possibly can but this leaves a tiny bit there left, um, and just slowly continue to build our resource back. The next slide has historical money information. I know we've talked about this on a few occasions but I just wanted to kind of demonstrate: this will be the fifth year in a row to which the tax rate does not increase. The total Levy that we have initially set is the 904,391 dollars based off a total tax capacity of one million 305,756 dollars. [10:48] **Ellissa Owens**: The next section is going to be the revenues and expenditures for each Bond. I did want to provide those details for you as far as what you're seeing for a line item and what the revenues and expenditures look like for each. For the 2011 A bond, the total revenue is 76,311.90 and the total expenditures are 74,620 dollars. The end balance is not the difference of the two; the end is the actual fund balance. [11:23] **Ellissa Owens**: Total revenues for 2013: 87,382 dollars and five cents. Expenditures are 135,150 dollars. [11:40] **Ellissa Owens**: For the 2017 A bond, total revenues for 2023 are 58,265 and the total expenditures are 58,265. [11:56] **Ellissa Owens**: And lastly the 2020 A bond, the total revenues are 17,700 and the total expenses will be 17,700. Moving on from the general fund to Enterprise, we're looking at the water fund summary. So local revenues are 372,200 dollars. Water expenditures are budgeted at 308,426.25 for a net income of 63,773.75. Again, I just want to note that in five years the water fund Debt Service obligation will be over 241,000 dollars per year. So what we're doing is following our rate study which depicts a minimum of six percent increase this year in order to be able to meet that Debt Service obligation within that five-year time frame. So the impact from the increase at six percent, you're looking at—we said 20,700 dollars—and at ten percent it would be 34,500 dollars. And you can see the perspective net income change with each other. Um, operating expenditures for 2023: 758,817 dollars for a net loss of 163,865. So the recommendation for the two rate studies that we've done were a 12 to 21 percent increase. Um, a note that the sewer—excuse me, the sewer fund Debt Service obligation is 340,000 dollars in 2023. And so we're attempting to play catch-up with our Debt Service obligation and um... [14:25] **Ellissa Owens**: If you look at the impacts from an increase of 12 percent, you get 16,352. A 21 percent increase gets us 25,116. So um, that just gives you an idea of the percentage versus the actual impact. Water and Sewer consumer for 2023: what we budgeted for is we budgeted for water breaks at 25,000. [14:57] **Ellissa Owens**: In the Water fund, and in addition we have budgeted for continued progress with our GIS mapping and outlets to be able to help facilitation at 13,500 dollars. For the sewer fund, we are looking at a Second Street lift station repair for 10,000 dollars, a 2023 sewer lining project of 100,000 dollars, and then we did budget for a grant match of 50 percent at 4,500 dollars in hopes that we can get another lift station line. I remember the one we got this year was implemented. [15:39] **Ellissa Owens**: On summary, we're looking at liquor revenues in 2023 forecasted for 1,905,000 dollars. Liquor expenditures we're looking at one million 737,000 dollars for potential net income in 2023 of 167,212 dollars. And with that, you'll notice the difference year over year. So we have now met our debt obligation to another fund and so at this point whatever that income is we have moved forward and will be able to utilize it. Vehicle fund summary: the DMV revenues are budgeted at 2,286,900. [16:29] **Ellissa Owens**: The expenditures are budgeted for 2,357,995 dollars and we have a net income for 2023 of a loss of 71,095. So significant difference from 2022 to 2023. These numbers do include a 20,000 dollar operating transfer. What has transpired is um, just simply shifts in um health insurance coverage for our employees. [17:15] **Council Member Douglas Juntunen**: Quick question: what will happen next year at this time at this current DMV operating? [17:21] **Ellissa Owens**: Correct. So what we're doing in Year's End is essentially supplementing with transfers from the general fund because the DMV is its own fund and so then we're pulling from the general fund to operate the DMV. You estimate next in the next year so 71,000—the net loss of 71,000—includes that 20,000 dollars. So it looks at this point in time based on our budget that we will lose almost 72,000 operating the DMV. And the reason we've been able to avoid some of this thus far is the way internally, um, the health insurance was split between employees and now the coverage has split under one employee which is entirely a personal decision. [18:18] **Mayor Jim Michalski**: Can we add this to your list when you talk to our state representative? The state fees are... state fees are even independent of market requirements like everything we gain other places, the state is just prepping it. [18:46] **Mayor Jim Michalski**: Thank you. All right, the rest are our motions we have to make. So do you call... I don't have any questions before I go into the open public hearing portion for Alyssa? I got it, you do. Our liquor store is not paid for, and I know that we're going to be looking at 167,000 extra and we are looking at a 12% increase in the sewer fund. I would like to have some discussion of monies going towards that sewer department or sewer fund from that because your whole purpose... in fact, rates are cheaper reporting liquor store. I'm not talking about it a lot but I mean even if you put the 14,000 you'd be at a 24 percent increase in that fund. [19:40] **Ellissa Owens**: Sure, and that's not a lot. Just as an idea, if Council is open to it, some of the discussions that we've had internally is as we wrap up 2022 here we'll have access to what the um, what the net income was for 2022. So we can come up with ideas and presentations as far as how to utilize that and what stays in that fund for maintenance of the liquor store and then what gets removed and then how it's utilized. So once we have an idea of what those numbers are going to be from 2022, we'll use that to make decisions for the monies that are in the fund balance and or what happens in 2023. [20:41] **Council Member Kris Huso**: Kind of thinking along the same lines and we could—we should probably have an agenda item where we look at where that goes because I was thinking sewer, water, police, lining of our... when I mean sort of the lining of the sewer lines that are played, the old clay stuff. So like we have money designated percentages to like four or five departments and maybe we do a larger amount in some departments. I mean, just look at percentage-wise that way. I think that'd be a real wise thing to do with it to really help with some of these that are struggling all the while, but making sure that we're making that liquor store fund needed for their own repairs and to upgrade and not pillaging it. But at the same time, it is right. [21:35] **Ellissa Owens**: Sure. And in the past, capital projects from the liquor fund have been funded by the general fund, but moving forward, you know, monies can be set aside for the liquor fund to have to fund their own capital projects as well. [21:49] **Mayor Jim Michalski**: It should be, yeah. It’d be a real good agenda item, yes. Any other questions before we move on? All right, I'd like to have a motion to open the public hearing. [21:58] **Council Member Lou Ohly**: Motion. [21:59] **Mayor Jim Michalski**: You have a second? [22:00] **Council Member Walter Lower III**: Second. [22:01] **Mayor Jim Michalski**: All in favor say aye. [22:02] **Council Members**: Aye. [22:03] **Mayor Jim Michalski**: Opposed? Carried. So we're now in open public hearing. Unfortunately, I have no one here at this time. We'll wait five minutes and then I'll decide if we wait another five or if we want to proceed. Entertain us, Ryan, for five minutes. [22:51] **Finance Director Ryan McKeon**: I should go check the door, make sure. [23:01] **Mayor Jim Michalski**: I could ask people... anyone to save it on the water light they need lots. I thought there was an appointment. Thank you, that's such a good sport. Greg, I suppose you've had enough in your service with the water light. How many years did you sit on that Commission? [23:40] **Greg (Citizen/Former Member)**: [Inaudible response] [23:42] **Mayor Jim Michalski**: And four? But yeah, you had black hair before you started too. That we've read it here or with Vietnam? That's why. We also came back nice to have two for two weeks so like a pretty good showers. [24:05] **Mayor Jim Michalski**: Any words of wisdom, Phil? [24:08] **City Superintendent Phil Entner**: Not publicly. [24:10] **Mayor Jim Michalski**: Not publicly. That leaves it up to you, Kris, for the rest of it. [24:31] **Council Member Kris Huso**: Yeah, really it may be exactly what they need. No thank you. [24:47] **Mayor Jim Michalski**: Well we got three minutes to go. Chief, do you got to test those tasers when you get them? [25:05] **Sheriff Kelly Lake**: I might be the one shooting it, right? [25:08] **Mayor Jim Michalski**: Volunteers, really? [25:39] **Council Member**: I like that idea. [25:49] **Mayor Jim Michalski**: Medical expenses, yeah. I'm sure I'll live. Five seconds, yeah, yeah right. Yeah probably. Yeah you probably should. Yeah, if they get shot with one and it's in them and somebody catches them do they get it too? [26:15] **Sheriff Kelly Lake**: I mean if it's still going off and it goes between the two probes but I'm sure you can still get the other person but yeah. [26:45] **Mayor Jim Michalski**: Oh, two more minutes. That up, Padres. We should fundraiser. Yeah, fundraiser to see which council member raises right? Absolutely. We're all hurting for my dog. We're all in this together. I'm screwing. Yeah, hit him again. I'll make a motion everybody under and is willing to play it at the movie theaters. [27:49] **Council Member Kris Huso**: Wow, I was waiting for someone to point out where things go. Look, I'm the only one I guess that's left. [27:56] **Mayor Jim Michalski**: We'll invite your children and your husband down to watch. Yeah, he can even shoot it. [28:05] **Council Member Kris Huso**: Oh, I'm shooting your mom. [28:10] **Mayor Jim Michalski**: I'll take some of those. Yeah, I'll pay 20 bucks right now to see that happen. The pellet, yeah no problem. Everybody's spouse can have a shot. [28:28] **Ellissa Owens**: That's a horrible idea. [28:30] **Mayor Jim Michalski**: Oh, the city's gonna be sitting fat after all this gets done. The meat is just going to be running everybody watching. Well, five minutes are up because nobody has showed up. Everybody fine? Much okay. Um, do you have a motion to close the open public hearing? [29:05] **Council Member Lou Ohly**: So moved. [29:06] **Mayor Jim Michalski**: Got a second? [29:07] **Council Member Kris Huso**: Second. [29:08] **Mayor Jim Michalski**: All in favor say aye. [29:09] **Council Members**: Aye. [29:10] **Mayor Jim Michalski**: Oppose? Motion's here. Now we have some motions we have to do here. Okay all right. The first motion: motion for annual Levy dollar amount. State that again, is at the 904,391 correct? [29:32] **Ellissa Owens**: Correct. [29:33] **Mayor Jim Michalski**: You have a motion? [29:34] **Council Member Douglas Juntunen**: So moved. But to not include that—just I know it's a motion and that's only the money—but can we also include that the tax rate is going to be the same for the five, five years now in your motion there? Is that okay? [29:56] **Mayor Jim Michalski**: Is that okay? Because I couldn't hear them if the motion to include that the tax rate has remained the same and this will be the fifth year in a row that will be okay. 0.6926, correct? Do I have a second? [30:08] **Council Member Lou Ohly**: Second. [30:09] **Mayor Jim Michalski**: All in favor say aye. [30:10] **Council Members**: Aye. [30:11] **Mayor Jim Michalski**: Opposed? Motion carried. Your next motion: for general fund revenue and expenses. [30:21] **Ellissa Owens**: Total revenues is 2,570,213 and the expenditures is 2,238,469. [30:27] **Mayor Jim Michalski**: Do I have a motion? [30:30] **Council Member Kris Huso**: So moved. [30:31] **Mayor Jim Michalski**: Second? [30:32] **Council Member Lou Ohly**: Second. [30:33] **Mayor Jim Michalski**: All in favor say aye. [30:34] **Council Members**: Aye. [30:35] **Mayor Jim Michalski**: Opposed? Motion carried. But the next motion is for Debt Service funds. [30:42] **Ellissa Owens**: Correct. [30:45] **Mayor Jim Michalski**: Motion to approve. Do I have a second? [30:50] **Council Member Walter Lower III**: Second. [30:51] **Mayor Jim Michalski**: All in favor say aye. [30:52] **Council Members**: Aye. [30:53] **Mayor Jim Michalski**: Opposed? Commission period. Motion for water fund rate increase at six percent. [31:01] **Council Member Lou Ohly**: So moved. [31:02] **Mayor Jim Michalski**: Do we have a second? [31:03] **Council Member Douglas Juntunen**: Second. [31:04] **Mayor Jim Michalski**: All in favor say aye. [31:05] **Council Members**: Aye. [31:06] **Mayor Jim Michalski**: Oppose? Carry motion. And Sewer front percentage increase twelve percent yes thank you. [31:25] **Ellissa Owens**: Here is 372,200 and the expenditures is 308,426 dollars. [31:35] **Mayor Jim Michalski**: A motion to approve those figures as submitted there? [31:40] **Council Member Kris Huso**: So moved. [31:41] **Mayor Jim Michalski**: A second? [31:42] **Council Member Lou Ohly**: Second. [31:43] **Mayor Jim Michalski**: All in favor say aye. [31:44] **Council Members**: Aye. [31:45] **Mayor Jim Michalski**: Opposed? Sewer fund... motion for sewer fund rate increase. So consensus in previous meetings was 12 percent. Do you have a motion? [32:06] **Council Member Kris Huso**: How about the recommended 12? It would be understanding that we're going to look at the liquor store income or revenue, excuse me, to possibly raise that significantly. [32:20] **Mayor Jim Michalski**: All right. A second? [32:22] **Council Member Lou Ohly**: Second. [32:23] **Mayor Jim Michalski**: Is that good? All in favor say aye. [32:25] **Council Members**: Aye. [32:26] **Mayor Jim Michalski**: Opposed? Motion for Sewer fund revenue and expense budget figure in the sewer fund is 594,952 and the expenditures are 758,817. [32:47] **Mayor Jim Michalski**: Do I have a motion to accept? [32:50] **Council Member Lou Ohly**: So moved. [32:51] **Mayor Jim Michalski**: Second? [32:52] **Council Member Kris Huso**: Second. [32:53] **Mayor Jim Michalski**: All in favor say aye. [32:54] **Council Members**: Aye. [32:55] **Mayor Jim Michalski**: Motion carries. Motion for motor vehicle revenue and expense forecasted or budgeted for 2023 in the motor vehicle fund are 2,286,900 and the expenditures are 2,357,995. The motion? [33:20] **Council Member Douglas Juntunen**: So moved. [33:21] **Mayor Jim Michalski**: Your second? [33:22] **Council Member Walter Lower III**: Second. [33:23] **Mayor Jim Michalski**: All in favor say aye. [33:24] **Council Members**: Aye. [33:25] **Mayor Jim Michalski**: Opposed? Motion carried. Motion for liquor revenue and expense budget. Revenues for 2023 in the liquor fund are budgeted for one million nine hundred five thousand and the expenditures are budgeted for one million seven hundred thirty seven thousand seven hundred and eighty seven dollars. Have a motion? [33:55] **Council Member Lou Ohly**: So moved. [33:56] **Mayor Jim Michalski**: Is that a second? [33:57] **Council Member Kris Huso**: Second. [33:58] **Mayor Jim Michalski**: All in favor say aye. [33:59] **Council Members**: Aye. [34:00] **Mayor Jim Michalski**: Opposed? Motion carried. One last motion, and that is a motion for the 2023 final budget as presented. [34:10] **Council Member Lou Ohly**: So moved. [34:11] **Mayor Jim Michalski**: Do I have a second? [34:12] **Council Member Walter Lower III**: Second. [34:13] **Mayor Jim Michalski**: All in favor say aye. [34:14] **Council Members**: Aye. [34:15] **Mayor Jim Michalski**: Opposed? Carrier. Okay, I believe everything else... anything else? Any questions by the council? Statements? [34:53] **Mayor Jim Michalski**: Yeah, good job. Motion to adjourn? [34:55] **Council Member Lou Ohly**: So moved. [34:56] **Mayor Jim Michalski**: Second? [34:57] **Council Member Kris Huso**: Second. [34:58] **Mayor Jim Michalski**: All in favor say aye. [34:59] **Council Members**: Aye. [35:00] **Mayor Jim Michalski**: Oppose? Thank you.