Okay, I'll call this November 20th board work session over joining for moments of budget. Pledge allegiance 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. Think maybe comments. move on to our first discussion item, the lake of fire release benefit
proposal and turn it over chief. That's it. Uh I'm going to pass it off to Dan and reach as far as kind of also we have Ryan on hand as well. Thanks >> everyone for again allowing us to
participate in the discussion around uh the future of our most valuable recruiting and retention tool which is our confined benefit plan. Um really uh this conversation was one that we as a board expected. We just
didn't know exactly when u we were going to come around to this conversation. But we have um city administrator Miller to thank for um motivating us to get serious and start doing our homework about you know what uh the potential really is for uh the state aid funds and
how we can really maximize the utility of those. not only continue to help our uh paid on call uh firefighters, but also help the city and help our brothers and sisters that uh answered the full-time call to service here in the past couple years. So, um I'm not sure
how much time everybody's been able to spend with the memo. Um but I'm happy to provide a a high level overview if that would be helpful and and really just try to answer any questions that you may have. Please do. Okay. So um you know
generally speaking we receive a certain allocation of funds on an annual basis um actually we just received our funds here in the past month um from the state to fund our pension benefits in
Lakeville. uh this year it was roughly um $800,000 that we received and that uh allocation is determined not necessarily by membership within the department itself but the growth of the city um it's demographically based. So um we uh
have thankfully experienced another really great year of fund performance from an investment perspective. So we found ourselves bumping into the same dilemma that we had a few few years ago when we approached you about changing investment strateg
how how can we actually um entertain a proposal where there is a revenue sharing type of um option on the table for us to allocate a certain percentage of our overall state aid to the full-time firefighters. Um, and thankfully after working with Cir Marson
Allen, our third party audit partner um the map came back really favorably and it suggests that um we can do a lot um with these funds. Uh our proposal outlines uh the next two years being a
revenue share of roughly 9% of our state aid allocation um which would cover a good portion of the amount that the city is paying for um right now that isn't picked up by the saber grant. Is that
accurate? >> Correct. >> Um and then once that grant runs its course, which is at the end of 2027, um we outlined a much more substantial contribution of 30% of the state aid to
um help subsidize those funds that um the grant will not be there to to cover. Um thankfully all of those projections or the projections that ran um show that we can do this and the fund will stay well
above that 110% funding level that we committed to at the city. Um and we really do see this as a win-winwin for everybody. um and really uh you know something that provides a path to the next three years
where we're not having to have this conversation year over year with you but um at least gets us through and 2028. Um the ask from the paid on call uh membership and our board would be that
um with this proposal, we uh trim our vesting schedules to be reflective of what we're seeing uh with most of our neighboring cities and that is to trim it to a 10-year uh vest or 100% vesting. Um and then also two incremental
increases over the next two years. um to the benefit level itself, getting us up to the current state u maximum, which is $20,000 per year service at the benefit level. >> Question.
>> So, the last conversation we had talked about kind of moving to the totally different system, >> correct? And dividing contribution. >> Yep. And it just doesn't make less sense not to stay changed. >> Okay. that was what motivated this 180.
Um I think that just in terms of there are certain aspects of contribution that are more attractive um like being able to invest your uh funds before the age of 50. Um but really the math here
supports this being a better option for the defined benefit plan at 20,000 being a better option for firefighters today. So we may pick up that exercise again, but today
question I'm comfortable with this. I mean we've had conversations for the last several years since I am vulnerf just to say yeah. >> Yeah, we need to see them drop off
16 17 I was going to say I agree and I think it's going to help with improvement and I appreciate and look forward to a safer grant uh just the future thought that you folks in the future.
So it sounds like we have consensus that next council meeting we have a motion for 10 year vesting as well as the um phasing in of this state.
Y >> I think it is important to note though that this also goes to vote which is happening at the December 1st meeting um which is next Monday. Correct. >> So uh we wouldn't vote on our
>> we can do it either way. I'll talk with Mike about how we want to do it. I mean we do it contingent upon approval or we can wait till they do it on the 1st and we approve it on the 15th. talking about process how we do that. >> And I only mentioned that because there
was a an info meeting that took place last week and the members that did show up were favorable to this as well and the small chance that well doesn't go this way then there would be future conversations that need to be had. But I I have a feeling that uh the membership
have a strong support for this too. >> I agree. I usually the those in attendance at the Q&A like that are the sweepiest wheels. >> So um we left there feeling really good about everybody's support.
>> I would expect good call. >> Thank you guys for continuing service. >> Yeah, I should note no echo everything. Thank you for doing it. Um I should note that um the 9% which I forget whether it broke out to
it was like 60 or 80,000. Yeah. Um we have factored that in to the budget for next year. So part of the next year reflects the assumption that that was going to happen. So we hope to
get this locked in so that we can start next. Thanks guys. >> Thank you. Appreciate it. >> All right. Turn over to uh our police chief Brad Fals to talk about
deployment of statewide life exp. No, you'll have to join >> the team. >> Yeah. So, uh, Lieutenant Hansen has a a few slides to, uh, put up on the screen and he'll kind of walk us through the presentation here. to speed it up just a
little bit. Um we're here tonight to um discuss license plate reader technology cameras. We did have a conversation with public safety committee uh maybe six weeks ago or so. Uh but all involved thought council work session discussion
would be a good thing to have. So, um, we're here to try to educate on what our technology is, answer any questions that may be out there, what our plans are for potential deployment and what that could look like. Um, you know, we're always
looking at ways to uh to innovate as a police department. It's in our mission statement to do so. Uh, so finding ways to u enhance public safety. Uh, always look at entertaining new technology. uh but also balancing that with uh certain
privacy concerns with with many types of technology. We've been through that before with obvious camera footage, drone technology, uh other types of cameras, and it's no different here with LPR technology. There's always that public um privacy concern, how do we balance code, right?
If we were just 100% in on on technology and disregarding the privacy aspect, that's that's pretty re reckless. If we were on the other side of all we cared about was privacy but never wanted to innovate, that's also pretty reckless. So, how do
we find the middle ground of making our community and public safer uh balancing those concerns about public privacy? And we really think we we found some middle ground here with the VR technology. There are a lot of Azod dear guard rails that are that are baked in place here in
in Minnesota through state statute uh through policy through public facing dashboards. We've worked really hard in our community to establish a level of trust with our community with the technology and equipment we do use. We're pretty outront and transparent about what's out
there. Um, and a big piece of that is so when we do have new things, there's that level of trust already already in place that we can uh move forward with with the new pieces of equipment. Um, so I think the the
biggest things are tonight is to show what this is and how we plan to use it and then obviously answer any questions that I just got up. I will say you'll see in here a little bit some of the neighboring communities that are using this technology. Um that
is important but I think it's also important to note that just because other people are doing it doesn't automatically need or mean that we need to do it. I think we always look at each community each agency has specific needs. So, uh, balancing what we feel like our community needs and our agency,
um, prioritizes and we do feel like this is something that certainly beneficial specific to Lakeville and specific to Lakeville, not just because, uh, other people are using it. Does state statute require a public hearing like
>> and I can just jump in here and when it comes we can go to the third slide but um just to pick off pick up after chief Paulson kind of the background of why this idea came to the forefront um is over the last you know so many
years five years or so we've seen an increase in regional crimes involving stolen vehicles uh catalog and murder deaths and just organize groups of of criminals that come to Lakeville or any other suburban
community and commit crimes in mass. Um LPRs have demonstrated the great success through a lot of other metro agencies that have been for these and not only solving the crimes but also preventing them. criminals see these similarities.
They're not getting um some nearby agencies that have them deployed right now and have success stories are Cry Lake, Egan, Savage, Shockby, and Dakota County. Several others in our area are working through the process of uh
deploying them as well. They've been so successful and it actually uh the OPR technology actually started at the residential level um in homeowners associations, but private businesses have picked them up and now are putting
them in on their private property to help mitigate retail theft, damaged property, things like that. Um, one of the features of these is they provide real-time alerts to officers that are on patrol working. They they
provide investigative leads to detectives that are in the office working on crimes that have already been committed and it just helps us round us out in in regional data sharing with other agencies. You want to jump to the next slide. So,
some of the features of a citywide LPR system would be motion activated image captures. And you'll notice it's image is intentional on there. It's not video capture. It's a singular image of the vehicle. It records the license plate. And you can think of the the image that
it captures as a vehicle fingerprint. So, it looks for the license plate. It looks for the make, model, color, and then maybe a unique characteristic. So, think of a blue pickup truck with a yellow bumper sticking. The it will
capture that. And the important thing with a digital or a vehicle fingerprint is we don't necessarily need the license plate of a suspect vehicle because criminals so often change the license plate. So, when we go steal a license plate of a like vehicle and change that
regularly, it's help your your criminal activity. So if we have that that fingerprint of the vehicle, we can zone in on say just red trucks in this time frame that have a yellow bumper st. That's that's the important feature.
There's a 30-day retention policy. State statute says 60 days. We would uh our policy would say 30 days. Um there's no real-time vehicle tracking with the LPR systems. There's no facial recognition technology
in any of the cameras. Restrict access to your strict data access controls that would be in place for anybody that wants to access weightless data. And we would have full audit logs of every user that does access the data.
That would include a reason why they access the data and so on and so forth. And this is nothing new to our officers because similar things are in place for our body warnings. So there's got to be a reason why you're looking at the
footage. It's it's all it's it's heavily tracked right down the you want to jump to the next slide. Um so this is this would be a an example of what the camera would look like. We in looking or working with some vendors.
Uh, Flock is one we kind of landed on as the one we really liked. It's on just a fiberglass pole. The cameras all ran by solar, so it's there's no wiring or anything like that. And with Flock, you
don't we wouldn't own any of the hard. It's all it's all leased. So, if there's an issue with it, it belongs to Flock. Um, and they would send engineers out to repair it. You want to jump to the next one?
This is an example of might have to make your screen maybe if you can. Uh this is an example of the real time width. So think text message comes to your iPhone. It's very similar. It's just branded in this case with flock. So it would give
you if we were able to zoom in, it gives you the the license plate number of the vehicle, the make uh or the kind. So in this the top one says an amber amber alert blue sedan and then the location of wherever that block
camera is that that captured that. The next one down would be example of if a car came into the city and it had a warrant or the license plate was associated with a person that had a warrant. So it would say a hot ticket. And the
next one down is a saved search. And that's just a match on a blue blue Ford or black Ford focus. And so a saved search is a hot list that would be unique just to wake. So say we had a gas station that was rod and the only thing
we knew is that it was a blackboard focus and we knew that it left in a certain direction. We can jump on frog website. We can enter that into our hotness. And so that would be instantaneously uploaded for all of the
Lakeville officers to be notified if a if a vehicle like that hits one of our flock cameras. So it's kind of a unique kind of a good feature for that instantaneous um getting eyes out there on the road
for for a crime that happened in a vehicle that we want to track down. The next slide will show us a kind of a draft image of what it would look like for flock deploying LPR
cameras uh in the city with a 20 camera deployment. And you'll notice the green dots are all cameras. And you'll notice there's heavy emphasis on ingress ingress to the city. And that's that's
very intentional. There's no plans or ideas to put cameras in neighborhoods or anything like that. It would more focus on think of creating like a digital gateway to the city. And this would give us an idea of criminal activity that was
coming into or leaving the city. And commonly what we see is for example a stolen vehicle coming into the city at 3 in the morning. And they generally, you know, are coming into the city commit crimes. Well, if we're notified of that, even if we don't have cameras in the
center of the city, we know the vehicle's here. So, we can get officers out into our hot areas to try to check for the vehicle. And inversely, we know if a vehicle leaves our city, say they stole a new vehicle and left the city,
well, that that report might not come in until 7 9:00 the next morning, but we can query that vehicle and flock and know approximately how much time it spent in our city and the fact that it left. Um, and again, that's just a draft.
You'll notice there's some gaps on the east side of the city. We would work this to do everything we could with 20 cameras. The next slide is uh more along the lines of the proposed deployment plan if this were supported. So 20 flop cameras
like I mentioned before, we would focus on major access points along I35. Uh secured roadways such as Kenwood trip, honey road 46, Cedar Avenue, County Road 70, and 185th Street. If we
had secondary or cameras extra, we would focus on, you know, entrances to commercial corridors, heavy retail area. We would also pay close attention to bordering agencies so that we can capitalize on, you know, say Prior Lake
to our west as cameras. So, we can capitalize on that. If they have county road 21 covered and we have 185th covered, we would we could through a process of elimination tell if that vehicle was coming into traveled from
Lakeville during its uh criminal activity. And again, these the locations that were on that map before are just in for you guys to to consider. The next slide uh covers the cost of of
what this idea would cost and and the installation fee for 20 cameras would be $7,050 actually which is a 50% savings if we were to act in 2025. >> Black Friday deal
>> Black Friday deal. I think they might give us even um and then after they're installed an annual service fee of $3,000 per camera. Again, if we went with Flock, Flock would own those cameras and charge us
$3,000 to utilize their services. So the total first year cost would be $60,000 $50 for 20 cameras and then each subsequent deal would be $60,000 assuming that we don't raise the price.
Um so if we did that a budget impact we believe would be there would be no impact to the budget uh because we could pay for this using repurpose funds designated for other areas uh that
hasn't been used yet in 25 that would give us 26 to use the system and budget for it the second year actually 27. The next slide is is probably the most important one when it comes to um
concerns in a system like this and that's privacy and oversight. And I'll start start off by saying that much of the privacy concerns can be mitigated by good policy and that's certainly our intention if this were supported. But
just to reiterate on a privacy concern, there's no facial recognition on these cameras and you can't search for people. So, somebody might say, "Well, what if it captures somebody through the windshield of the car?" Well, that could happen. But an officer can't go in and
query um you know, blue truck with a male driver wearing a blaze orange vest. It just it simply can't do that. So, we can't search for for people or a person with a mute or anything like that.
The cameras capture vehicles only from public roadways. So, they wouldn't capture any vehicles on private property. Our cameras would have a 30-day automatic deletion unless it's tied to an active investigation. So, if it's stolen a vehicle that hit off a
camera, that would just follow data retention laws that no. And importantly, all data that we would collect with city of Wakeville cameras would belong to the city of Wakeville and we would dictate who that data is
shared within anybody. And I'll I'll go into a public dashboard and we can talk a little more about that in a minute. But then of course uh the policy would be or the cameras be covered by not only department policy but Minnesota state statute also has some limitations in
there that we would adhere to as well. The next slide is um just an example of uh what I thought was a pretty good policy and that's the city of Woodberries. You can Google it and read it. It's a three-page policy, but it it
follows state statute. The only difference in theirs is they have a 60-day retention policy on their data and and ours would have 30 like I said. And then Alan, I don't know if you're able to click on the Adina PD one. And
this is an example of the Adina PD's frontfacing dashboard. It's just uh another step towards transparency in the what the public can see. The public can log in and u
but I'll just keep talking. So when it does, it'll see it. Um, so the public can log into what's a a front-facing dashboard of block and that would tell anybody who logged into it how long they retain their data. The D9 is 30 days,
the number of license plate reader cameras that are out there. If you look on the right side, you'll see the column that I'm referring to. And so this is real time right now. So there's 23 LPRs deployed anyway. The organizations that they grant access
to their cameras is Hawkins PD, Minnotonka PD, and St. Louis Park. So, it's really important to have those mutual aid agreements with surrounding agencies. And the reason why it is is because it takes just a little bit for
say I report my car stolen for that to get into the system and be a statewide odd list takes a little bit of time. But if we had a robbery at a business, seconds count for that car leaving the city. So if it leaves the city and we're
sharing data with Burnsville, they would be able to get those quickly. So you'll see how they they share with the surrounding agencies. The hot lists that their officers are alerted to are National Center for
Missing and Expoing Children, Amber Alerts, and then the Minnesota BCOS. So thinking garments and things like that. Then if you look further down the vehicles that they've detected in the last 30 days or is 340,269
and of those there were 5,56 hits. Now that might seem like a lot. It's just shy of 2%. But it's all of the warrants and things like that. So, a lot of, you know, there's obviously a lot of data and a
lot of a lot of warrants out there that would be associated with being pushed. So, doesn't necessarily mean an officer responded to all 5,500 hits, but they're there. The next one down is how many times has any dina detective used clock
to query and search or investigate? And in this case, in the last 30 days, it's 154 times. And then if you go a step further down and you can click on that hyperlink that will actually download a spreadsheet and tell you it gives you metadata that would identify
the detective that used it, but then it'll tell you the reason why did they query that data. So stolen vehicle, robbery, whatever it may be. Um, and so it's just a a really good tool and it's
just a transparency piece for the public. >> Which which cities would we do agreements with the ones you mentioned earlier, the shock and fire? Yeah, I think uh I think that would be open to discussion, but I think it would
be real important to at least have mutually agreements with our bordering agencies so that we could capture those. Would we allow an agency to have access even though we're not at open?
>> So you can't they they wouldn't have access what they could do is call one of our detectors and ask them. In fact, Lakeville has done that 57 times this year for various crimes. And we have quite a few success stories that we've
used other people's LPRs to track down our stolen vehicles or even a homicide suspect that uh that flock actually another agency that had helped us with.
Um so go back to the PowerPoint and um the next slide is just how does this fit within Envision Lakefield and we believe that um it fits in two ways in community values uh specifically safety through out the community in the form of
collective crime prevention, increased officer and community safety, citywide situational awareness, and neighborhood level protection without physical intrusion. And that also met strategic priorities. We believe it checks the box of
providing services that add value by delivering a high impact public safety service for a reasonable cost. It adds tangible measurable value for residents. It supports the community's expectation of modern effective services and it
reinforces Lakefield's commitment to being safe. And the next slide just kind of goes over the next steps. So if this were supported, um we would obviously have to finalize our site mapping and obtain any infrastructure approvals or permits to
install them, enter into our preference would be which block and then uh hopefully get some installed by the beginning of this year. Are we able to move them? Let's say we deploy next year and kind of figure out, oh, it makes sense.
You think you want more programs on this side? >> Yeah, they are movable. There's a small cost. Uh I don't know what hundreds of dollars, but they are definitely movable. Yeah, I I guess
I was thinking about like community, you know, I mean like there are some agencies that do that for community events a actually helping our techn we think that 30 days captures
the information long enough for any crimes any major crimes that maybe haven't been able to report it by query the system and it also gives us um yeah we look at this with public
safety maybe a technology like she doesn't have a point where this is just like a major credit and it really helps us helps us address our issues but it also helps us be um with law enforcement agencies. Um I
I'm all for it. Uh one question so you highlighted that some private businesses actually have these and I see like Mexican list there's a lot of shopliftings. Do you know if anybody in Lakeville in terms of a private business?
You do have and I thank you for bringing that up because any private business say if a private business says and you wonder well if if you're sharing that would you share with a private
business. It is a one-way street. So, private businesses can choose to share with public safety, but but it will never go the other way. Public safety will never share
one point you had said something about there's no real time traffic, but there's real time What's the difference? >> So the difference would be when you when when a vehicle crosses a camera.
What it doesn't do is there's no ability for if we want to say figure out if the vehicle is going to stop. Well, unless that vehicle was in a hop, we wouldn't have no idea. So we don't know where a vehicle goes from K to K
unless we do a clear which we need a lot of person there's no it's not there's no way for us to track integration like C I'm not I'm aware of you. I don't I don't I have
not heard it might be something that right now. Yeah. wanted person among the numerous things that are in a squad. I know this is going to be probably a screen in the laptop, but practically speaking, what does this mean for an officer on the road? I mean,
are there new bells and >> Yeah, there could be a portal running in the background. Um, and there would be an audible as you saw in that picture too. So later in the August they would also devices
>> I don't I I don't agencies that use uh the 911 dispatch. I don't think we'll receive this going to be a question that's going to lead to a little bit of a tangent. Does this typer plate back? Are those
folks going to move with the tantrum? I think you got to stay down the front requirement. So that's not your problem. That's a state issue. >> Well, I wonder if it's >> especially on Tesla. >> Well, if you buy online, some
manufacturers don't provide it. It's up to purchaser to put it on like they put it on. >> Roll your eyes. That's the public safety point. But what it makes me wonder though is
are there any state statutes out altering license plates or they've seen these stickers, >> right? So if we did see somebody with that violating
so you can't license or anything you're doing to that know this technology out there that's why the vehicle footprint, not just the license, but it's important to capture
uh you know screen really highlighting criminal aspect of this but success. It's not all kind of criminal activity. there's a there's an increase of people that this technology itself.
I just want to applaud you on this because I do think it's innovative and um I know my company actually is piloting this in a number of not in Lakeville but in a number of locations too because on the retail theft um issue it is to have permission to share
it's a great idea and from when we were speaking about this at the public safety meeting I appreciate the emphasis on the corridors the major corridor just our community ready for
so minor builds in the city quite yet. um not that they were potentially going that direction, but really the the crime especially as are coming
in. So investigating things are happening catching those hotless folks. So I mean we are the gateway. So a lot of stuff is coming through.
I have one more question I forgot to ask. So there's the news right now. There's a lot of discussion of speed cameras and I understand this has nothing to do with that record. All kinds of privacy in the constitution
issues there. Outside of that, if you didn't catch something coming, >> I know, but I mean when it is that 30 stored in the club. >> Yes. Yeah. Yeah. And it's important
to meas Thanks. I I think this makes a ton of sense, especially Yeah. Take a five minute break into special revenue budget.
Yeah, but then search They're so conveniently pass. September Facebook Yeah. Yeah. promise Yeah, we need
so much how much they were talking about how like all the I'm just rather trying this fancy Yeah.
There was conversation about Listen. >> So, do you have one? >> I need that uh >> game tonight to go 47 points or more to beat Daryl. >> We're tied for with 11. Really? >> Yeah. >> We had the exact same picks and he's got
he's got it at 45 and I got 47. >> Johnson. >> I need a Bryce Young breakout game. Well, don't pay attention. >> I usually kind of eye it up and I think I might have a chance and I'll break it down. But
>> different I can do that. All right. So, we'll start with special revenue fund and budget items. >> Mr. Mayor, so this is something a little bit you're not used to seeing these special revenue
funds as a group, but there's changes that are happening based on funds are they have their specific sources and they're legally restricted for different expenditures. So, bringing them to you as a group makes sense. We've got um actually our communications fund for the first time as a tax levy for instance.
So we've got 300,000 in there. Um we've got first center fund will need a general fund transfer of $70 million. So there's activity within these that affect our other funds that and also um just need approval. So bringing them to you as a group like this is sping
awareness to the different uh restrictions on them. Um so the communications fund as I mentioned it's as we well know the revenue sources are are are dwindling a little bit on the cable revenue. So um this is that 300,000
is showing um helping that fund out. Um we still have a decent funding balance of communications of 916,000. Um but um as we go further out in the years there continued support unless something changes dramatically and that
and revenue um that that should be an ongoing need. So for the local affordable housing aid which is the new fund um when we just first got that money in 2024 as you
remember that all went to the county um and the projections are now that we know what's coming in there's going to be more money coming in for that fund. Um the county has we are continuing that that partnership with
the county for to the tune of 250,000. Um there's still a portion of our money that we could use for other things and too big. We'll bring that to you if they just send a discussion. So that one is um I didn't really like lock that in
because to have that discussion um the downtown special service district as you're aware we had that um public hearing for that they said no charge for 2026. Um but just just awareness too has to that
um that it's getting down to the 400 roughly at the end of 2020. Uh the first thing I mentioned um still you know we've got our our capital memberships with the four different cities. Um we're not sure what we're going to get for other preferred
membership I think it's called. Y. >> So the 71,000 from the general fund help those first year operations may or may not be needed and all the revenues go from the other cities. And >> at one point some were talking about
doing one time paying. So that's where the whole >> um >> far loing theirs. >> Yeah. And I don't think that's I don't think they're frontloading. All of the cabinet members do have an initiation
fee, right? But with one agency between retired. Okay. >> Um so that's all that 71,000 to date. Make that a balance budget for the first year. And again, that's looking at the
operations manager starting January 1st. Um applications were accepted through today. Um, and then the actual operations for the part-time positions would start June 1st. So, that's what's built into that budget. Um, real quick, Julie, before we
move on from that, just as a reminder, um, that's basically half a year of revenues um because it's not going to open until June. So, future years will look different than that. >> Um, and also preferred members, uh, Brad and I were talking about that today.
Ember Hills um is looking at expanding into the postcertification program and so um they hope to have a decision on that first quarter of the year. I think in 26 we might wait on expanding the preferred memberships. We want to be
sure that if that were to come forward that they would have enough space. So we just that's still a little different. So fun. Um and then when we get to the opioid um fund, that is such a fun word to say and
we struggle with um initially for the 2025 budget, we had estimated that we was um sort of 140,000 of the opioid money. That um drug task force agent position is actually vacant
for a lot of the 2025 year. So, we're only going to be transferring now 24,500 from the opioid fund to your general fund. So, that's a change from what we budgeted. Um, the position is um being filled and will fully the tax force
agent position will be filled in 2026. So, that's what we're looking at. Budget 26 budget is $100,000 transfer from opioid to the general fund. >> It's not the same. It's very unpredictable.
>> And we just recently entered in some new ones, too. We don't know what those are going to be. >> Can all sorry >> can all the different settlements go into one fun? >> They're all going into the same fund. There's just one settlement
I think it's called. um that is very they have different parameters and it's only $9,000 that we got from that still in the same funding. We just have to watch how we spend on $9,000 because the reporting is different for that one. So those are the special revenue funds
in a nutshell. Um like I said Tina will be talking to you about the law money um costly that a big chunk of that for some exting the microplastics expelment
um 3. >> Yeah, >> that's just just going into our water. >> So that's and it's not there's no reporting tied to it, but we are using it toward um those the water treatment plant those those capabilities are in
the plant. So >> So the definition of a special fund is that there's reporting requirements specific to those dollars >> and it's legally restricted in one way or another. typically that's how they >> I am convinced that >> so I have on your retreat agenda right
now topic so some cities are starting to take a little bit more and aggressive approach due to some recent work events on implementing franchise fees on broadband providers I Um that's why I'm saying it's
interesting. So um there's still some there's wood is one and some others are looking at it. So I just have it as a flag to talk about January. >> Yeah. I'm just
Yeah. session. >> One question about the um downtown social district. >> Yeah. Who will be part of? >> Is that just a city council decision? Does that have to be voted on by?
>> No. The city council can choose to dissolve the taxing district, let it maintain its zero >> or there is there is a mechanism within statute that they could petition. There's a pretty high threshold of um It's pretty high.
>> Yeah, I want to say we don't know property, but the the last I was in meeting, but the last conversation among us BLA folks was I think this year's holiday
some folks and then next year they may >> we've given them some estimates on what the different assessments would be for partial. So, you know, if they were to do a $10,000 budget, what would it cost ace hardware and bear? So, we've given them different scenarios for that. >> And does there does there need to be
the assessment of which parcels are included in that or is that all inclusive of >> No, there's a specific map that shows which parcels are included. >> That part of the problem or >> there's some there's some that don't
feel like that they get the benefit of it. Um but they were established as part of it and um you would have to I think act to change that but then that would change the allocation for the rest of them to do that.
I know it's still covered bill to the last item 2025 year preview and final 2026 packet I'll highlight changes uh we do have some for 2025 documents increases
in revenues uh that were positive So roughly 200,000 in combination of fire and police stated the saber grant will bring in 377,000 more um license and primitive high which is great by about 210,000
and charges for services are always are up as well 820,000 so the 2025 revenue projections are rather um what I'm showing in the little chart where it's showing the adopted budget for 25 million year end
estimates. Notice that transfers out of 1.85 that is sitting in the fund balance right now. We had a designated fund balance that was the 2023 public safety. So, and um so we trans that out of the general fund that went toward the
purchase of 2055. Um, and then um, as we're looking at how we were able to change our 2026 revenues, actually, I'll just I'll step back for just a second. So, our variance is still a positive variance of our
final um, change of roughly 545,000. So, that's what we're looking at for 2025. Um, looking at 2026 revenues, we were able to reduce the levy amount by 300,000. And the things that helped us uh be able
to do that was the increase in the fire relief aid, the 9% that you just heard about tonight. So about 74,000. Our police is estimated to come in roughly 100,000 more than what we originally budgeted. Um and then the fire relief aid, you know, this is the portion they
repeat was up 143,000. If you notice in the chart below for expenditures, the expenditures also increased by 142,000. So, it's an in and out for that 5 portion. Um, we have our fiscal agent fees for Dakota 911 and arenas part of
the $57,000 increase is some um rate calculations that needed to be fixed. And then there's a um slight increase in the uh 911 fees that um their board is looking for their approval at this board meeting is put in here assuming that
they will approve it. Um, and we just bumped up some revenue projections to their licensing for their investment income. And when you miss mostly of that 81,470 with some antenna revenue, uh, T-Mobile
thought they owed us less money by taking credits and, you know, they actually owe us more money. And so we're anticipating that will come in 256. >> So, can I just backtrack one second? Sure. Um, so it says, you know, one of the major drivers for why I make the
point 7. We want to have a conversation about bonding. >> Yeah. I mean, I think >> not just bonding, but other sources. >> Yeah. I mean I I know that we want to be supportive with the 3550 project but I still think that
um and then there were just some minor changes on the expenditure side um in year 2026 from what we saw in September um and those were included in the the chart that chart below. So the preliminary expenditures were at 46,400
46,400 and then we were ending up at 46,500 for those expenditure changes. Um based then on where we're at with the prop the property tax levy. So originally in September with the levy we
were proposing then it was a 7% increase over last year. Um now with these changes it comes down to 6.4 for 20% levy increase and um broke down a lot of you know 1.2 2 million of our levy increase was for the general fund. But
we had some big um challenges. We ra $1 million increase in the building fund, 350,000 increase for the pavement management, 400,000 for the equipment fund, 550,000 for the park and trail improvement, and then that first 10 million for the communications, that's 300,000.
Um and we did have some savings some our debt the depth of spot roughly 628,000. So that's nice. and we really will enjoy that as the levy the park bond levies are now um plateau we were not adding
any more parks but that's going to be part part of the reason why the dead but is now starting to show that reduction so what that leaves us with our our tax capacity rate um for 2025 was 32.7 and now we're up to 33% for 2026 and that
chart that you see with a preliminary tax capacity raise we are still quite a bit lower than all of our other cities and um so we're still winning on that front. >> What's your level of confidence on that chart? I mean
>> those are all based on the um proposed levies. So they they could bring their levies down. Um but all that affects it all if their market valuations changed. They could flow, but usually they don't change a lot from this unless somebody
really >> Yeah. I'm confident that we're still going to be the lowest. >> Oh, yeah. >> And ours is going to be the 33. >> 77%. I know it's it's so and then as we're looking at the
impact what to the medium value of home which our median value home now is $467,000 the annual city taxes will increase $75 $12 of that increases from the levy and $63 of that increases the actual
assessed market value increasing um for our commercial properties if we're looking at a $1 million property property um the existing commercial property saw an increase in market value of 14%. So large jump in their market valuation. So of their annual increase
of $977 924 of that was market value. >> I was in a presentation from the county of about are they feeling that commercial now catching back up to pre dollars or it
took such a decline in valuation? >> Yeah, I don't think I don't remember them talking about that in particular. I think it's um that's part of it. You know, it's just based on comparable sales and >> okay, >> maybe some expansions. I'm not sure if
there's any >> existing business add-ons expansions. >> Um so yeah, from the preliminary till now, our projected tax rate we thought was going to be 33.15
um back in September. are now in the bounded by 43.0%. So it's like the case. Um so and then we just laid out in the packet the um the fund general fund summary. We want to point it out which I
think is on page eight of the PDF. Um the transfer out the 2026 it says final that is missing is 71,000 for the first center. So that will be adopted in the adopted budget that 71,000 transfer allocation open.
So um and then just pointing out too if you looking at the sources and uses for the capital project funds that give you an idea of how the fund analysis of doing each of those capital different funds. Um it shows the tax levies
needed going out in these years ahead. Um when you're looking at the equipment fund um on their page still we've got a tax levy of 40 400,000 but the liquor fund contribution for 2069.5 million liquor fund is anticipating contributing
another 1.2 million in 2027. So the liquor fun is we need to be able to help keep that fun low um parking trail improvement and that's where as we talked about plan retain well
um so right now 6 we're 1.5 million parking trail improvement that is estimated to go up to 2.9 if that that retaining wall is in place if this if we don't have other funding sources. So
just a point of interest too as we were talking with our insurance agent for renewal retaining walls can be covered in our policy. So we're trying to give them that information. I don't I'm not sure what that means
exactly because we just learning this like last week said retaining well cover but I don't know what it means if it's only for retaining walls kit or that true um so that's I just wanted to give you that
those um sources and uses of those funds that I'm using um regularly in tax body support uh are there any questions on those total 9%. >> That's the 74,250.
>> It's the 30% accounted for% years out. Yeah. But it doesn't show any because we don't do multi-year budgeting. It is we will be factoring in 2027 was 9% again.
>> Yeah. >> Um I was looking at the property tax levy tax capacity and tax rate sheet and the tax levy estimates 33 and those project 10%.
>> Um We don't per se. We are using projections of you know the 4% increase in the general fund expenditures. So and they'll implement revenues development. Those could all help reduce how much we
need to revenue. But still it's still looking positive. But again we you know 2027 would be a good year. We have to do long. >> Just a reminder that next year always looks big. >> Robert. Yeah.
>> Yeah. And we always work it down. So, um, >> not to say it's not concerning. Uh, we do have some things we need to to work on, but I don't believe we'd be coming to you with a 14% budget increase. >> Finance.
This is pretty good. our financial sustainability policy where we're at checks all the boxes that are third for negative trends. Yeah, I know. We're we're confident that the policy goal
Wait, what do you mean? Trying to remember one other thing in terms of just balance between uh our commercial, industrial and and residential taxpayers. You know, the
commercial saw the biggest increase. Is there an ideal balance? And how do you really work through that? If there is, you know, a perfect number, what's the perfect uh balance of those three areas?
I mean we we can't control the business that choose to come here but we do zoning and planning and so as we go into this next comprehens I don't I'm not looking for an answer but is there insight into that as we
look at I think someone should look at Yeah, that will change someone with economic conditions and what makes a lot of sense. city has a pretty good system. It is for discussion. updates.
So this happened since it was kind of our inaugural one for us if I wish to go. Um I think I we could talk about more at the retreat I think but I I was thought it was a great experience. Um good topical
handouts here about some of the stability discussions which I think are really important. So again this index thing was the uh the big one that you know speech on just you
know how people invade government. Um, and then there were some really good topics and sessions that I went to. I think ones that stood out was the American 250 thing that I've talked to a number of you about it and there's a lot of community planning other
discussion about that topic of the world today data centers. um some really good um discussion with some um some communities that have a lot of data center discussion which leads me to believe that maybe that's something we need to give some thought to some
ordinance some preemptive ordinance discussions of some of those topics today other than that I think John I don't know what other thoughts you have I I thought it was worthwhile I I was proud that we did not have a quum there
>> some communities take great pride and some things as many Delta can hold and we were very quick response. >> Yeah, I would agree. You know, you go to these conferences and I thought the topical information you were presenting
was is relevant and they really covered it well. What I liked about it was they did it mostly in their own table format. Other cities this um you know they they talked about their
experiences and questions. So there were quite a few but the uh people just some of the issues piece of short700 Um the American 250 one we could
probably do pretty easily but data center one might take some more time to pull stuff together but if you like to we can add that to the December >> and and that is where they might us have a conversation and say this is spend some time. >> Yeah. The one thing the one specific
item that they mentioned was it was too the one big word of advice was make sure you have a mega water user provision in your thing which you know despite the fact that that the treads have kind of changed but that was the thing that just
better be dealing with this in the abstract preparing rather than having to react to actually proposing Thank you. >> Yeah, must be the desert. Anything else?
Um I think most of my work time has been really um delicate balance. state aid. At the end of the day, I was happy to put the pension because we went uh Julie and I were in the Q&A last week
and some tough questions were asked by members and the pension board relief board uh responded with confidence on those answers and didn't really refer to us too much except to support the the
numbers that they were saying. Um, so I just think, you know, a lot of that work takes time and trust and so I think this so thanks for the support and helping move that forward. This is not an official uh city thing committee, but we the city will be
getting a generous gift from the family. Motion a second. Same thing. All in favor say I. I.