WEBVTT METADATA Video-Count: 2 Video-1: youtube.com/watch?v=lln9Zoz976A Video-2: youtube.com/watch?v=vSSdH8xNVSc NOTE MEETING SECTIONS: Part 1 (Video ID: lln9Zoz976A): - 00:00:00: Pledge of Allegiance, Roll Call, Agenda Adoption - 00:01:43: Proclamations: Building Safety and Mental Health Awareness - 00:05:00: Consent Agenda Items and Pulling Items G and J - 00:06:46: Public Comment: Concerns Regarding Lights and Algae - 00:09:50: Special Event Permit: Invisible Wounds Car Show Discussion - 00:12:36: Fire Inspector Classification Update and Understanding - 00:15:20: Public Alley Private Improvement Process Discussion Begins - 00:23:28: Public Alley Improvement: Council Questions and Motion - 00:29:52: City Manager and Department Reports and Updates - 00:34:47: Commissions, Committees and EDA Meeting Update Part 2 (Video ID: vSSdH8xNVSc): - 00:00:19: Meeting Call To Order and Agenda Adoption - 00:00:51: 2026 Budget Update: General Fund Overview and Projections - 00:05:12: General Fund Revenues and Police Savings Discussion - 00:09:32: Enterprise Funds: Water, Wastewater, Electric, and Solid Waste - 00:14:28: Solid Waste RFP, Contract Negotiations, Rate Stability - 00:17:13: Fiber Optic Fund Deficit and Financial Planning - 00:19:11: Public Comment: Addressing Fiber Fund Deficit Concerns - 00:24:06: Bonding Agencies, Auditor Concerns, And Fund Balance - 00:25:58: Discussion On Fund Balance And Potential Caps - 00:31:16: How Debt Creates Positives in Other Balances - 00:32:29: State of Fiber Optic Fund, Obsolete Equipment - 00:36:01: New Fiber Companies Using Existing City Conduits - 00:37:08: Net Position, Fund Balance, and Cash Analysis 2025 - 00:40:41: Clarifying Surface Fund Balance Versus Cash Changes - 00:42:06: Electric Fund: Net Position, Cash, and Power Adjustment - 00:47:20: Proposed Power Adjustment Cap for Summer Months - 00:51:21: Electric Revenue Savings Discussion and Future Planning - 00:55:54: Rate Stability and Future Actions - 00:58:09: Assessor Report: Property Value Trends in Ramsey County - 01:02:00: Penny's Going Away, Utility Billing Change Policy - 01:03:54: Staff Updates: Retirement and New Hires - 01:09:19: Meeting Adjournment, Appreciation for Information Part: 1 1 00:00:00.000 --> 00:01:12.799 --------- Stand for the pledge of allegiance. Please aliance to the flag of the United States of America and to the republic for it stands one nation under God indivisible with liberty and justice for all. 2 00:01:12.799 --> 00:01:28.560 >> Thank you much. Uh roll call please. >> Council member Nordby >> here. >> Council member Woods >> here. >> Council member McKenzie >> here. >> Council member Schwear is absent. Mayor Mongi >> here. Thank you very much. May I get a 3 00:01:28.560 --> 00:01:43.920 motion to adopt the agenda, please? >> So moved. >> Woods. >> Second. >> Second. Norby. All those in favor say I. >> I. >> I. >> Thank you very much. We have presentations that uh city manager Frandle is very kind to read for me. 4 00:01:43.920 --> 00:02:00.640 >> First proclamation is building safety month. Um whereas the city of North St. Fall is committed to recognizing that our growth and strength depend on the safety and essential roles of our homes, buildings, and infrastructure play both in everyday life and when disaster strikes. And whereas our confidence in the resilience of these buildings that 5 00:02:00.640 --> 00:02:17.440 make up our city is achieved through devotion and vigilant guardians. uh building safety and fire prevention officials, architects, engineers, building uh builders, trades people, design professionals, laborers, plumbers, and others in the construction industry who work year round to ensure 6 00:02:17.440 --> 00:02:33.920 the safe construction of buildings. And whereas these guardians are dedicated members of the International Code Council, um a nonprofit that brings together local, state, territorial, tribal, and federal officials who are experts in the build environment to create and implement the highest quality 7 00:02:33.920 --> 00:02:49.920 codes and standards to protect us in buildings in the buildings where we live, learn, work, and play. And whereas these modern building codes and standards include safeguards to protect the public from hazards such as hurricanes, snowstorms, tornadoes, wildland fires, floods, and earthquakes. 8 00:02:49.920 --> 00:03:06.640 And whereas the ICC sponsors building safety month to remind the public about the critical role of our communities largely unknown protectors of public safety, our code officials who assure us of the safe, sustainable, and affordable buildings that are essential in our prosperity. And whereas built to last, 9 00:03:06.640 --> 00:03:23.680 the theme for the building safety month 2026 ensures us all to get involved and raise awareness about building safety in a personal, local, and global scale. Whereas each year in observance of building safety month, people all over the world are asking to consider the commitment to improve building safety, 10 00:03:23.680 --> 00:03:39.360 resilience, and economic investment at home and in the community. And to acknowledge the essential services provided to all to all of us by local, state, tribal, territory, and federal building safety and fire prevention department in protecting lives and property. Now therefore, the mayor of 11 00:03:39.360 --> 00:03:55.440 North St. Paul does hereby proclaim the month of May 2026 as building safety month. Next up, we have proclamation for mental health awareness month. Whereas mental health is essential in the well-being and quality of life of individuals, 12 00:03:55.440 --> 00:04:11.120 families, and communities, and promoting understanding and acceptance, helps reduce stigma, and encourages people to seek support when needed. And whereas the cities or the nationwide 988 suicide and crisis lifeline provides 247 free and confidential support for individuals 13 00:04:11.120 --> 00:04:27.840 in emotional distress or experiencing a mental health or substance use crisis. And whereas organizations such as the National Alliance on mental illness along with other local national partners provide ongoing advocacy, education and support for individuals and families 14 00:04:27.840 --> 00:04:44.479 affected by mental health conditions. And whereas cities play an important role in promoting awareness of mental health resources, encouraging residents to seek help without stigma or hesitation. And whereas the month of May is nationally recognized as mental health awareness month dedicated to 15 00:04:44.479 --> 00:05:00.960 promoting mentalware mental aware wellness and reducing stigma for all. Now therefore, on behalf of the city council and the city of North St. Paul, the mayor for the city of North St. Paul, Minnesota does hereby proclaim the month of May as mental health awareness month. Well, you made the meeting 10 16 00:05:00.960 --> 00:05:22.360 minutes shorter, so thank you. >> All right, on to the consent agenda. Uh, item A, May 5th, 2026, city council workshop regular meeting minutes. Item B, general claims of1,312,455. Item C, H claims of 27,275.64. 17 00:05:23.520 --> 00:05:38.479 Item D, building permits for April of 2026. Item E, resolution accepting donations for April of 2026. Item F, resolution of support for reallocating of state bonding funds to the new water tower project. Item G, 18 00:05:38.479 --> 00:05:54.160 special event permit, invisible wounds car show. Item H, uh, purchase of one and for primary underground cable. Item I, electric utility power adjustment. And item J, fire inspector classification update and memorandum of 19 00:05:54.160 --> 00:06:11.560 understanding with Live essential group. >> All right. Thank you so much. Would any member like to pull anything at this time? >> Yeah, I want to pull G and J. >> G and J. 20 00:06:13.360 --> 00:06:29.440 All right. We good on that? Yep. All right. Now we have open to the public next and John Schmall. Mayor, I'm sorry. >> Can we approve the ones that >> Oh, yeah. We got 21 00:06:29.440 --> 00:06:46.319 >> Sorry, John. Have us just have a quick little Yeah, just a quick seat. Should finish that up, right? We better do those >> there. We'll finish that up. All right. Motion. >> So moved. >> So move. Council member Normmy. >> Second. >> Second. Woods. All those in favor say I. >> I. >> Thank you for catching that. 22 00:06:46.319 --> 00:07:01.919 >> I was John. This time I promise I'm not lying. You >> didn't lie. Just made a mistake. John Schmall, 2750 Chisum Avenue, North St. Paul. Uh helping my neighbor 23 00:07:01.919 --> 00:07:18.080 out uh clear up some uh brush whatever on her property and started the conversation with uh did you answer or did you receive and did you answer the uh little postcard from the watershed 24 00:07:18.080 --> 00:07:34.960 district? They wanted input about water or shoreline property owners. It's exclusive group shoreline property owners and it isn't Casey isn't a lake according to them and uh Ron could uh 25 00:07:34.960 --> 00:07:51.680 agree with that because he was there also when they brought that up. Anyway, she said, uh, I said that I'm unhappy with them, with the algae growth. And she said, I'm unhappy with those damn lights that are on the, uh, on Casey. I 26 00:07:51.680 --> 00:08:08.960 said, well, what's the problem? She said, I went to a seminar on dark skies and those damn lamps out there, they have no cover over the top. It's just one big light. and she said that it 27 00:08:08.960 --> 00:08:27.599 causes the growth of algae and other problems. And I went, "What?" And she said, "That's what they taught us at this seminar." So, um, I'm losing my artificial light um, connection here. And I said, "Well, 28 00:08:27.599 --> 00:08:44.720 you got to go in and talk to the city about that. They do this on every meeting. You can go in." Couldn't convince her. Not going to go not going to go in. So I thought, how can I bring this up? Because what I've heard is hearsay. I don't have it. Except there's 29 00:08:44.720 --> 00:09:02.560 Google. And here is Google. Artificial light near water directly fuels algae growth by driving photosynthesis. When lakes and ponds are exposed to night lighting or dock lights, cyanobacteria, blue green algae and phytolankin grow 30 00:09:02.560 --> 00:09:18.959 more rapidly. The localized light pollution exacerbates nutrient pollution leading to damaging or deranging well and toxic algae rooms. So, can we do something about those lights? The 31 00:09:18.959 --> 00:09:34.480 sign says that the park is only open till uh 10:00. Turn the damn things off. Let's do something environmentally friendly. Can we? And sec lastly, what's happening with that hole that they're 32 00:09:34.480 --> 00:09:50.480 digging? They've stopped. What's going on with that big area? It put something in the um uh newsletter. What's going on? The the trail is closed. Have you been over there? Have you tried to walk around the lake? 33 00:09:50.480 --> 00:10:13.360 >> Thank you. >> Thank you, John. >> All right. >> All right. On to city business. Um, we will go back to item G from the consent special event permit for invisible wounds car show. 34 00:10:13.360 --> 00:10:29.200 I just want to make sure that everything is all in line, that you guys have got all your your um site plan and the fire department's got all their codes up to date with the food trucks and all this ready to go. 35 00:10:29.200 --> 00:10:43.839 >> Yeah, we have uh >> Hi, Russ. How's it going? So, it's my brother Chavis, Brian, they're part of the group that's going to run the show. Okay. >> Um we do have our site plan submitted. Um, we've been going through the special 36 00:10:43.839 --> 00:11:00.720 event permit stuff online. Uh, all of our food vendors stuff was over to uh Jordan and sounds like well a lot of the vendors are >> a lot of them are repeat although 19 of the vendors because of just the way 37 00:11:00.720 --> 00:11:16.560 things went >> and and the every other a lot of 19 of those vendors are not doing it. So, we're working on back filling >> um at this point because of the timeline of um the city needing the stuff by the 38 00:11:16.560 --> 00:11:31.600 20th so that they can get all their permitting. >> Um we've already cut that off at this point as far as food vendors go. So then >> the the fire department uh sounds like they will be doing on the 5th they would do their walkthroughs. 39 00:11:31.600 --> 00:11:48.720 >> Okay. and approvals of each >> what the city side of of the permits need to be. >> And then for road blockades, what are the what's going to happen there? >> Well, so we have we have our own we're going to be having our own blockades. Um 40 00:11:48.720 --> 00:12:05.519 and I talked to Brian earlier. Um, originally I had uh the assumption or had the communication that I thought there were blockades already available, but I mean blockades like that are 41 00:12:05.519 --> 00:12:21.279 pretty easy to make. I mean, I think we could probably pound out a hundred of them in a 4h hour period with our wood shop. So, it's not going to be a big deal. >> Okay. Well, I just want to make sure you guys good luck and have a good summer 42 00:12:21.279 --> 00:12:36.320 out there. So, >> yeah. So, good. Appreciate it. >> Any other to ask anything or >> Thank you again for all that you do. >> Just wish you >> really looking forward to this partnership. >> Yeah, >> I appreciate it. Thank you. >> Thanks. >> Thank you. 43 00:12:36.320 --> 00:12:51.680 >> Thanks. >> All right. You're good with that now? Okay. We'll move to for that motion which is Let me go up there. of the special permit for the invisible wounds. Can I have a motion, please? >> So move. >> So move. McKenzie >> second. 44 00:12:51.680 --> 00:13:07.680 >> Second. Norby. All those in favor say I. >> I. >> All right. Thank you guys. >> Thank you. >> All right. Next up is the uh item J that was pulled, the fire inspector classification update and memorandum of understanding with the ask me council 5 essential group. 45 00:13:07.680 --> 00:13:24.760 I'm just asking for this fire inspector's position that that was pro made for an individual that had moved out of our city. 46 00:13:24.959 --> 00:13:41.279 And I'm not sure what his status is, if he's going to stay or if he's going to go, but if he's is he going to be getting another person underneath him or is it a position that we really because we've never had an inspector 47 00:13:41.279 --> 00:13:59.360 prior to this uh firefighter moving out of our district here? Is this something that we need to hold on to? So that's my question is >> earlier the uh that position has been around for a while that we uh added one. 48 00:13:59.360 --> 00:14:15.600 There is a separate position that does the fire um or the uh code enforcement. Uh this is going to be um a fire what's the marshall not marshall fire um >> inspector >> inspector position but there's always 49 00:14:15.600 --> 00:14:32.560 been two of them. Uh Brent was upgraded to the fire marshall position and uh so this is if uh they're looking to an internal opening of that position for internal um I think currently as of now we have one person that qualifies for it with the training that they've had and 50 00:14:32.560 --> 00:14:49.279 then what will happen is another position will be open for the fire inspector. The reason it's in here is a change because the title used to be fire inspector fire inspector captain position um and uh that's part's going to go away. So, it's actually going to be a downgraded position that doesn't 51 00:14:49.279 --> 00:15:04.560 pay what it used to. So, um it'll be a savings for that position. So, >> right. All right. Okay. Yep. You're good. All right. Can I have a motion on that, please? >> So, move. >> So, move. Mackenzie. >> Second. >> Second. Norby. All those in favor say I. 52 00:15:04.560 --> 00:15:20.800 >> I. Thank you very much. >> All right. Next up is the public alley private improvement uh process and approval. We have community development director Ken Roberts here to explain. Mayor, city council members, this is a continuation of our discussion that we 53 00:15:20.800 --> 00:15:38.959 had on May 5th during the workshop about public alleys and private improvements and the process approval uh that staff is proposing as a brief uh review. the 54 00:15:38.959 --> 00:15:55.680 council. We discussed uh at that meeting earlier in May that city staff had been approached by devel or not developers, property owners that wanted to improve their gravel alley with blacktop or patuminous. Unfortunately, we don't have a process or 55 00:15:55.680 --> 00:16:12.079 method on the books to say yes, you can do that or no, you can't. And so that spurred on this whole uh discussion and research and uh information that I'm providing to you that I provided at the last meeting and again tonight. So again, we don't have 56 00:16:12.079 --> 00:16:27.839 uh process or policies on the book and so it's our belief as staff that we should and that's why I'm presenting tonight. And again, as a review uh from the May 5th workshop, it seemed to at least staff's impression, council was supportive of putting in 57 00:16:27.839 --> 00:16:45.839 place policies and procedures to allow private property owners to make improvements into a public alley with several conditions and we briefly went over those. So tonight I'm looking for direction and hopefully a confirmation from city council that we should put 58 00:16:45.839 --> 00:17:01.519 these into place, put them into action and we will then have them for people that ask the question coming up in for the future. So again, the uh alleys are there's two really two types of alleys. 59 00:17:01.519 --> 00:17:17.679 We're we looked at last time the through alleys which go from street to street and then segments or portions of alleys which are really more common where I think this will come up. Uh some alleys clearly are improved and they're paved 60 00:17:17.679 --> 00:17:32.400 and they're fine, but there are many that are under improved with say only gravel or minimal black top. Some only have grass, some have a mix, but yet people try to use them and do use them for access to the rears of their 61 00:17:32.400 --> 00:17:49.919 property. And again, this map here will show it a little better. This is one sample area where there's this is Margaret Street here on the east end. There's an alley here where these three properties for sure access use the 62 00:17:49.919 --> 00:18:05.919 alley for access to garages or sheds. And there's some access at the other end that's in place now. Again, not improved, just as gravel on its good days, which doesn't always hold up, especially in the spring. 63 00:18:05.919 --> 00:18:20.960 I walked through at the last meeting some uh high level thoughts on what should be done or what could be done by the city. And for through alleys again, which would go from street to street, it's uh staff's opinion that that really 64 00:18:20.960 --> 00:18:37.360 if if an improvement was proposed for an entire through alley, that that should be done as a public improvement project, not taken on by private individuals. >> And that's really not what our focus is for tonight. If we get a petition and 65 00:18:37.360 --> 00:18:52.400 the engineers get involved, then that would come back to council again for a through alley for improvement. What I'm what the rules I'm proposing and staff has worked up are more if the example if these folks here wanted to pave two or 66 00:18:52.400 --> 00:19:09.919 300 ft of this alley as an example for uh better access to their properties. So that's really an alley segment and what I'm going going to go through here are really all the things we talked about the last meeting. the process with 67 00:19:09.919 --> 00:19:28.000 a uh several steps and involve uh a pre-application meeting on the site with the public works director, possibly a city engineer to look it over and for lack of a better term, get the lay of the land, see if it looks even possible 68 00:19:28.000 --> 00:19:43.919 or feasible from a high level visible uh site visit. And then if so uh in turn then the applicant or the property owners would make application to the city. And I view it similar to if we had a request for a variance or conditional 69 00:19:43.919 --> 00:19:58.880 use permit there be some paperwork some drawings a uh statement saying why they want to improve it exactly what they want to do. There would be I'm proposing an application fee of $500 plus an escro 70 00:19:58.880 --> 00:20:16.160 fee of $1,000 to cover if there's legal there will be legal costs and potentially engineering costs. And those are the same fees again we charge for a variance or conditional use permit would just be an addit a new fee that we don't have currently. And that's one thing 71 00:20:16.160 --> 00:20:31.440 different than uh was brought up during the workshop. We didn't have a fee in mind at that time but we do now. That's what I'm proposing. Uh the rest of these steps are again all the same that we talked about and I briefly spoke to the 72 00:20:31.440 --> 00:20:47.280 city attorney about number seven here and we had originally called it a license agreement and it's his opinion it's probably more likely an encroachment agreement but again that's a legal document that the city gives the owners the permission to do what they 73 00:20:47.280 --> 00:21:04.640 want to do subject to conditions including that the city can use still use the alley uh they put in all the improvements at their own expense uh and it gets recorded the legal agreement gets recorded against the titles of all the 74 00:21:04.640 --> 00:21:20.480 affected properties. So future owners in theory should know about it. So 10 15 years from now somebody wouldn't come back to the city and say well this alley is falling apart you need to improve it. There should be a recorded agreement says no, it was a private agreement, 75 00:21:20.480 --> 00:21:35.679 private improvement. The owners are responsible for that and the city is not. >> And that's one of the many things that would be included in that agreement. And it again would be drafted by the city attorney and uh approved by a 76 00:21:35.679 --> 00:21:52.240 council if somebody got down that far down the road. Uh we would have we have minimum minimum specifications. City engineer would make inspections and we would require a final inspection when 77 00:21:52.240 --> 00:22:09.360 the project's done. We talked a little bit about the minimum construction standards including removal disposal of top soil or and organic materials and these are primarily for paving the installation of a minimum base 78 00:22:09.360 --> 00:22:25.840 material of 8 in gravel and or sand uh that would be compacted. There have to be at least three inches of batuminous paving or five inches or six inches, excuse me, of concrete. The pavement would be 12 feet wide a 79 00:22:25.840 --> 00:22:42.640 minimum unless the public works director approved a narrower width and most of the alley rights away or 20 feet. So we don't want real wide. We don't need a freeway going down the alleys. But yet want to leave some room on each side for drainage, some grass areas, that kind of 80 00:22:42.640 --> 00:22:58.720 thing. Snow to pile up if they plow it. That that those situations. City would not accept gravel or class 5 as a finished material. would have to be paved with a imperous surface of some type. Uh if there are street connections 81 00:22:58.720 --> 00:23:13.919 that would need to be made, there would be have to be a concrete apron that meets our current engineering standards. Uh they have to maintain the existing drainage patterns and there would have to have erosion control uh installed and 82 00:23:13.919 --> 00:23:28.720 maintained during the life of the project. So what I'm asking for tonight with the council is first of all or I can take questions but our recommendation and I have a motion here is that uh council 83 00:23:28.720 --> 00:23:45.360 review these items the information and if you find the procedures and criteria acceptable make the motion to approve the procedures criteria standards and application fees as outlined in the report tonight and then 84 00:23:45.360 --> 00:24:05.440 direct us to make uh make it also and implement this process. Excuse me. And with that, I'll take questions between Margaret and Helen. What's the center of the alley? Is that all tree overgrowth or is it is it graded into 85 00:24:05.440 --> 00:24:22.640 the point where it would be an alley or is from one end to the other? because I know from Margaret Street what three houses in they want to do the uh >> in here >> improvements in that >> right >> and from the other end I don't think 86 00:24:22.640 --> 00:24:38.720 they were asking for anything but they would give them the opportunity to do it also if they wanted >> correct but I I mayor and council I have not investigated specifically the middle section here >> okay that's why I was just wondering because if the residents in the middle 87 00:24:38.720 --> 00:24:56.400 want to get up and down that alley they'll be able to do it because you it's it's an unapproved alley anyway. So, anybody can basically drive back there >> as Yeah. As long as the turf or grass, >> right, >> holds up. Yeah. 88 00:24:56.400 --> 00:25:16.080 >> Right. Exactly. Yeah. So, I mean to me if they want to do the the uh partway alleyway, I would, you know, like the class 5 is not a recognizable product, but the reg grind that they grind up from the 89 00:25:16.080 --> 00:25:32.080 asphalt and concrete and all that, that would be your better base and it would be a lot cleaner base for them to drive on, providing they don't want to put a concrete driveway in. That would be a be that would be the best base to put down. It's solid and it 90 00:25:32.080 --> 00:25:49.520 generally the base they put underneath roads now anyways. >> And whatever if this goes forward we work with our city engineer public works director to make sure we have the the best specifications and all this. I 91 00:25:49.520 --> 00:26:05.679 mean, I went through this with our alley back 20ome years ago, and I was fortunate enough to have the neighbor that sold us the property, he did put a drainage in that attack attaches into First Street. So, we were able to put 92 00:26:05.679 --> 00:26:21.039 the alley in being that the drain the drain tile from the city sewer or the waterway was there. So otherwise, yes, these guys would have a lot more cost involved by putting a sewer culvert in one end of their alley. 93 00:26:21.039 --> 00:26:38.320 So, but I would be okay with them using a CL a solid base underneath it. >> And I would think most people would want a solid base so it doesn't fall apart after three years. >> Yeah. Right. Right. I was just thinking 94 00:26:38.320 --> 00:26:55.120 as this was going on, um, what about signage? cuz you you're going to see it's paved. Somebody's going to turn and say, "Oh, this is an alley and start driving." Well, it's only an alley until >> 3T >> the pavement stops, right? So, to me, it's like this is a dead end dead end or there has to be some kind of signage. So, people all of a sudden decide that, 95 00:26:55.120 --> 00:27:10.880 oh, it's, you know, it's paved. I'm going to start driving back there and figure out you can't be you can't put a sign anything back there because our public works has got to be able to get their uh >> I'm talking just a sign at the beginning of the alley, you know, dead end, you know, so people turned on the black top 96 00:27:10.880 --> 00:27:27.039 and they realized they they shouldn't keep going off, you know, where the black top stops. >> All of a sudden it's, you know, I don't want to be invited for all of a sudden people start driving through because it's they oh just keep going and just go down the other end. >> We could we'll certainly make that up. I just think that's just to warn people 97 00:27:27.039 --> 00:27:42.799 when it turns this is hey this ain't a through this is something that this is only a little part or yep private alley because they they're paying for it you know of course private is really because we use it for utilities so probably not that but just something to to know that you know we don't expect traffic down here 98 00:27:42.799 --> 00:28:00.000 >> or not a through street or >> yes >> yeah we'll we'll add that into the mix >> um one other thing that um I would like your guys's opinion that I think we should direct staff to had is some sort of a notification process for the alley 99 00:28:00.000 --> 00:28:14.559 segments for all the properties that are abuing the alley. So they have a period of time to go back to the city to go, "No, we want to get together and do the whole alley or no, I want 100 00:28:14.559 --> 00:28:31.120 >> to contest this or or whatever reason, but but some sort of notification and period where they could contact the city staff. Um >> I agree >> about their thoughts on that. >> Might have been thinking about it' be nice to have a through rally." All of a sudden, it's like, okay, let's all get together instead of just doing a piece of it and then everybody asking later, 101 00:28:31.120 --> 00:28:47.360 you know, why didn't we just go through or we don't want this cuz we don't want anybody back there. >> Because it's amazing the folks in the middle of the alley, if they need to get into the back side of their alley and it's un unapproved, they're going to have a harder time. And if these guys all get together, band 102 00:28:47.360 --> 00:29:03.840 together as the residents, say, "All right, let's pay this amount of money." What we did is we paid a same amount all the way across one fee. One time the alley was done by the city Kais come in and had the uh project done and was done by shipskies and that was it. We're 103 00:29:03.840 --> 00:29:19.799 done. >> So >> I like the notification and be able to add to it if people want it. >> I think they should go around and just get the feedback from other residents at >> least notice. Yeah. >> All right. 104 00:29:22.320 --> 00:29:37.039 Troy's thinking. I see it. No. >> Oh, don't took his hand off the keyboard. Even I'm thinking. Anything else we want to Are we Are we everybody good moving forward with the way this is now? So, can I have a motion, please? >> So moved. 105 00:29:37.039 --> 00:29:52.799 >> So moved. Council member Woods. >> So second. >> Second. Council member McKenzie. All those in favor say I. I. >> All right. >> Thank you much. >> Thank you. Thanks. All right, reports from the city manager and departments. 106 00:29:52.799 --> 00:30:09.120 Uh we have staff meeting today. Uh one update is the parking lot uh between Sidewinders and the tattoo shops now done. Um they'll be adding the what do you call them? Parking barricades, if you will. >> Curb stops. 107 00:30:09.120 --> 00:30:25.200 >> Curb stops. There you go. So they don't run into the walls. Um but yeah, it looks good. um electric department. They're working with the contractor down there at the Northwood Park area. Um bore contractors got I think most of their uh conduit in now. They're working 108 00:30:25.200 --> 00:30:42.399 to the aerial part of that project. Um underground installation contractors expected to begin work near North Tower Park uh during the first week of June. Um full-time job offers been offered to uh a lineman that they um interviewed. 109 00:30:42.399 --> 00:31:00.399 Um should be a good addition to the team. uh communication has been busy planning for the summer events. They have uh first ones coming up here soon, first car show on June 5th and then they got two workouts in the park events that she's been pushing right now. Um we got 110 00:31:00.399 --> 00:31:16.720 a blood drive coming up here on May 28th that still has slots available. So, anybody interested in that? Um, we're doing doing the increased communications coming up for the uh plan for the time capsule project of pulling that out of the ground and then having 111 00:31:16.720 --> 00:31:33.520 that program. So, that'll be pretty exciting. 50 years has been in the ground. Um, public works been busy with the student build house. Students were done as of last Friday of their school year. There's still a little bit of work left to do. It's uh contractor work 112 00:31:33.520 --> 00:31:49.760 whether or not it's uh they have some cabinets. We have uh cabinet tops. Uh then we have what? Some flooring. And we're going to get the sewer and water in tomorrow. And then uh a little bit of 113 00:31:49.760 --> 00:32:07.760 uh doing the grass work and landscaping, wrap it up. Hopefully have it on the market um come July. >> Wow, that's awesome. >> Um they also had a new hire that starts next Tuesday. Um so they're looking forward to that. 114 00:32:07.760 --> 00:32:24.640 Uh seasonal staff has been on board. I believe they have four of them that have started already. Um milling and paving work is uh started and progresses with uh hopes of completing sometime before the holiday weekend. Is that correct? 115 00:32:24.640 --> 00:32:39.600 And uh community development's been uh busy with many things, but uh we did have a a good successful cleanup day. um a lot less vehicles, but uh took care of a lot of stuff. And now that we're next council meeting, we'll be talking about 116 00:32:39.600 --> 00:32:56.880 the solid waste program and uh see what it means moving forward with the uh cleanup day. But uh that's all I got for you. >> What was the total car count? >> 74. >> 74 car count. >> Yep. 117 00:32:56.880 --> 00:33:13.120 >> Compared to last year, it was well over 300. >> Yeah. >> Yeah. I think we were at a well organized this year. No one showed up. >> Yeah. >> I think you you mentioned that the people that showed up were very happy that they didn't have to wait in line. Even paid a little bit, they were still 118 00:33:13.120 --> 00:33:29.039 happy. >> Indeed. >> Very much so. >> Okay. Thanks. I'm Before I go, I want to ask you a question, young man back there. Take your three steps to the microphone. How many spots I tried to keep count, but I I lost interest or I couldn't figure it out. How many spots are we 119 00:33:29.039 --> 00:33:44.960 getting between Sidewinders? Do you know how many spots car spots are? >> They got me on the spot. I don't know the number. >> Oh, all right. >> I got up to 20 and then I lost count. I couldn't remember if that was 19 or 20, so I gave up. >> The striper, I was on the phone with Randy quite a bit on Friday night and 120 00:33:44.960 --> 00:34:01.200 they tried to utilize or they put as many in there as >> I like that diagonal coming in against the building so it gives you some more room. >> Yep. That's just because that that curb cut there with the way the parking lot laid out, you know, we just kind of had to make uh something work there. So I I sorry I don't 121 00:34:01.200 --> 00:34:16.720 >> it's fine. I was just I was looking I thought man it's a lot of spots. I saw them park over yesterday and boy I was talking to somebody. I said I've been trying to do that for 20 years getting that pavement done and man it just makes the whole area look better. Just really brought a lot >> really nice and it gets striped and 122 00:34:16.720 --> 00:34:32.800 >> doesn't look like a crater you know a bomb hit there and just left a hole >> and I think it'll get well utilized you know being what it is now. So >> I can uh give you an update uh number tomorrow. I was just like I said I I pulled over started counting then I got to 20 and I couldn't I'm done. Goodbye. 123 00:34:32.800 --> 00:34:47.679 >> Well, if you talk slow I can run out there. >> We'll hold the meeting for you open until we get back. >> All right. Well, thanks go to the window in the back room here and count them. >> All right. Thank you for city manager 124 00:34:47.679 --> 00:35:04.480 for your report. So, now we're going to go on to commissions, committees, and all that fun stuff. Um, our EDA meets June 9th coming up and uh that's all I got here. I was going to go to the historical group last 125 00:35:04.480 --> 00:35:20.640 night, but I just didn't feel up to it. >> Okay. Yeah, this is going to be a good one. Installments group. Yeah. >> You have anything, sir? >> Um, I've got nothing. >> Nothing. >> The next planning commission will be on June 4th. >> That sounds good. Are you going to 126 00:35:20.640 --> 00:35:35.920 mention the water tower at all with this thing or It was in the consent agenda. >> Governor, I can give you some. >> Yeah. Well, let's give it some We know that uh it's just to that point. >> I just got a text from Randy. He thinks 127 00:35:35.920 --> 00:35:51.760 about 56. >> All right. Thanks, Randy. >> Uh yes. So, we were very fortunate. We were able to reallocate the 4.5 million that we initially were going to look at putting into the uh community center and we can reinvest that into the water 128 00:35:51.760 --> 00:36:08.400 tower. uh went down and testified uh the mayor and Jack. Thank you very much for that. Um they did agree to that both Senate and House. It's just needs to be signed off by the governor. Um we're hoping for so it'll be an upside. So we 129 00:36:08.400 --> 00:36:25.119 have what 300,000galon tank there. Now it'll go to a 750,000galon tank which uh will add to the fire safety that we have for the coverage. Um, it also, normally what they want you to do is have enough um, reserve that would cover what a day's use would be, 130 00:36:25.119 --> 00:36:40.960 which it doesn't at this point, but it this will take care of that. Um, it's going to add pressure to areas that have low pressure on our system. It's just kind of a win-win. Um, by having this grant as well, we won't have to raise rates to uh, have people pay for this um, water tower. I mean, this is just 131 00:36:40.960 --> 00:36:56.800 great all the way around. Uh, this tower that's up there now has been there for almost 80 years. These new towers are can are expected to last up to hundred years. So, this is a really great thing for our community and uh very much appreciated. >> That's great. Yeah, I I mean it's something that the whole everybody's 132 00:36:56.800 --> 00:37:11.760 going to benefit from. So, I appreciate everybody's hard work, staff, everybody being able to support this. It was a tough decision. I mean, we worked on this thing since we got the grant in 23 till now. And you know, we were able to repurpose and we thank uh uh 133 00:37:11.760 --> 00:37:27.200 Representative Lily and Representative and Senator Zhan >> Zong, sorry, that uh they stepped up and helped us. So, it was uh it was a great effort for everybody. So, I uh appreci I really appreciate it and looking forward to that getting started. And so, thanks everybody. 134 00:37:27.200 --> 00:37:43.440 >> Absolutely. >> Any new business? We kind of took care of that there. How about you? >> Nothing for me. Everything. Well, you got to say something before before you get paid. So, I wanted to make sure you at least said something. Good. How about anybody else? 135 00:37:43.440 --> 00:38:00.560 >> Um, last Friday on the 15th, I had the honor of giving, uh, a city update to the local Maplewood, North St. Paul, and Oakdale Rotary Club. >> Oh, great. >> Um, uh, it it was well attended and it went very well. Um, Sue Springborn was there. Um, >> nice. 136 00:38:00.560 --> 00:38:17.200 >> So, that was always nice. But uh just a wonderful um group of people that do do some great things for the local community. >> Yeah, they are a great group and I appreciate you. They heard from me for three years. So you could have a fresh face and a fresh person to do that. So thank you for doing that. >> Absolutely. 137 00:38:17.200 --> 00:38:33.520 All right. Nothing else. I'll call for adjournment. >> So move. >> So moveie. >> Second. >> Woods. All those in favor say I. >> I. Thank you all. Uh June 2nd is our next meeting and everybody have a great week. >> You too. Thank you. 138 00:38:33.520 --> 00:38:36.520 >> Thanks. Part: 2 1 00:00:19.039 --> 00:00:34.640 You have the chairs at the vets park on Monday. Then >> call the meeting to order. Roll call, please. >> Council member Nordby >> here. >> Council member Woods >> here. >> Council member McKenzie >> here. >> Council member Schwear is absent. Mayor Mongi >> here. 2 00:00:34.640 --> 00:00:51.200 >> Thank you very much. Agenda. Adopt the agenda. Motion. How we start with that? So move. >> So move McKenzie Woods. All those in favor say I. I. >> I. >> All right. Thank you. Topics. >> Thank you, Mayor. Um, we have three topics up tonight. The first one up is 3 00:00:51.200 --> 00:01:09.119 the first quarter 2026 budget update. We have finance director Dan Wick here to discuss. >> Good morning. Uh, good morning. Hey, >> you didn't go that long. We're not morning again, are we? >> I told you I could speak for an hour. No kidding. I can't talk for an hour 15 4 00:01:09.119 --> 00:01:26.240 tonight, but uh mayor and council members, uh tonight we're just going to kind of go over where we're at right now with kind of uh our 2026 budget. Um we'll take a look at the where the general fund is now and then I kind of do a a conservative projection for the remainder of the year. Uh again, a lot 5 00:01:26.240 --> 00:01:40.720 is unknown at this point in time and how spending will will uh will go. Um but uh that and then our enterprise funds and then we'll take a look back at um how we ended 2025 because I want to look at the 6 00:01:40.720 --> 00:01:57.040 net position and the cash as net position as a comparison to what we had in our financial plans and then also cash and then there's a difference between the two of them and it's really going to be illustrative when we get into looking at item number C which is 7 00:01:57.040 --> 00:02:14.239 the electric utility power adjustment. um because there are a number of things in an enterprise fund that you do from an accounting perspective really do not impact cash. Um but there are some liabilities and journal entries that we have to do in how we report um 8 00:02:14.239 --> 00:02:31.280 enterprise funds because they're business enterprises and um so it does impact your net position yet it really doesn't impact your net position in sort of way as far as cash is concerned. So, we're going to kind of walk through through those. Um, there this will not 9 00:02:31.280 --> 00:02:47.200 take 1 hour and 15 minutes. There are a couple of other things if we do have some time, even though they're not on the topics that I would like to just kind of have an open discussion and kind of seek some direction from um the council um on some some things. one 10 00:02:47.200 --> 00:03:04.319 being um the penny uh the penny is going to be going away. Um and so some cities have well retail cu uh businesses have already made some changes. Um cities have also adopted some different policies and changes and so kind of want to throw out some concepts to you and 11 00:03:04.319 --> 00:03:20.000 see what you kind of favor of how we move forward with that. um and and also being as fair as possible um that we can with our uh residents um especially when we come to utility um payments. Um so 12 00:03:20.000 --> 00:03:36.000 kind of have a discussion on that and then kind of want to just uh kind of show you uh where uh the assessor's report for 2026 which those values they get adjusted as we're moving forward um because they're they're uh figured as of 13 00:03:36.000 --> 00:03:52.000 January 2nd of 2026 and there's still a lot of process of open book um there's petitions um that can adjust the values but kind of want to show you where the values are looking at and and we've had years of growth both on the residential 14 00:03:52.000 --> 00:04:08.239 and commercial side to it. Um, and we're seeing in the past few years that residential has been just barely kind of growing 1 2%. Now we're actually going to we're seeing a decrease. Um, and so that's something to be aware of especially when we go into 15 00:04:08.239 --> 00:04:26.160 looking at the 2027 budget. Um, and then kind of just want to talk about where we're at in the budget process and when we intend to be coming in front of city council with kind of like a budget kickoff. Um, so we'll kind of walk through those different pieces. Um, the 16 00:04:26.160 --> 00:04:41.120 first item that we're going to kind of talk about tonight is the first quarter of 2026 budget update and kind of gave a little summary there, but we'll kind of go right into like the general fund. Um what we're looking at overall for our 17 00:04:41.120 --> 00:04:57.040 revenues um right now projected for for the year, we have a an adopted budget that had our revenues for the general fund at about $10.1 million. Um we're projecting that uh we'll get um about 18 00:04:57.040 --> 00:05:12.479 $26,000 less right now. And again, I look at things from a conservative standpoint. Um, so bottom line is we're looking at that we're going to pretty much meet our our revenue um that we estimated for and we budgeted for in the 19 00:05:12.479 --> 00:05:27.840 2026 budget. On the expenditure side um again we had a balanced budget. So we've got a 10.1 million um expenditure. Um as of the end of the first quarter in March um we had expended a little over $2 20 00:05:27.840 --> 00:05:44.800 million. Um I project that uh we're kind of looking at that we'll end up with at least $130,000 savings. I anticipate that to grow as the years go on. We we've seen very um you know like this past year I think we ended up u being 21 00:05:44.800 --> 00:06:00.960 like $900,000 under budget. Um the last few years we've been in the tune of $800,000 or or better. Um I anticipate us not being as good as that. um and particularly is because we finally have a police force that's pretty much uh 22 00:06:00.960 --> 00:06:16.800 fully occupied. I mean, right now we have one vacancy. In the past when we've had these meetings, we've seen ourselves in the position of two, three, four, five um officers down. Um so, we're in a much better position as far as our 23 00:06:16.800 --> 00:06:34.880 compliment um is considered. Um and so, uh we're not going to see the salary savings that we've seen in the past. Like last year, I think the police salary savings had over $200,000 in in savings even though they exceeded their um overtime budget. Um you know, that 24 00:06:34.880 --> 00:06:51.759 kind of offset some of the savings of the vacancies, but still um you know, they've done very very well. We're not going to see that coming up in the 2026 if things stay the way they are, which is a good thing um because it means that we've got uh pretty much a complete uh 25 00:06:51.759 --> 00:07:08.479 you know um force out there. um to protect our residents. So, right now we're kind of looking at the general fund at it being about $130,000 to the positive again on a conservative basis. Um also supplied um each one of our um 26 00:07:08.479 --> 00:07:23.919 departments that are are showing there and I'll kind of just go down to the police right now. I'm projecting the police is you know um only at about a $5,000 savings. um personal services um only being about a $20,000 savings and 27 00:07:23.919 --> 00:07:41.680 that's because for the first quarter they actually were in full complement. Um we've just lost an individual more recently um in the going into the second quarter. So there'll be a little bit of savings onto that. And then if we take a a look at so it'll 28 00:07:41.680 --> 00:07:58.080 give you all the revenues. It'll show you everything where we were at 331. Um and again a lot of our revenues again to kind of a reminder um you know our property taxes um aren't collected and distributed normally at 29 00:07:58.080 --> 00:08:12.960 the end of June is usually when we see a payment with a final distribution of property taxes to the city in July. that's been delayed this year um because of um ICE. Um and so the county had 30 00:08:12.960 --> 00:08:28.479 allowed um underneath certain qualifications for um individuals to that are homeowners to actually apply um and then actually extend their payment date by a couple of months. And so the 31 00:08:28.479 --> 00:08:45.600 whole um settlement is what it's called when we finally get our our payments is being delayed a little bit. um which can be which could be hard um for many cities um because if you remember that um that's about uh a good 40% of our 32 00:08:45.600 --> 00:09:00.880 income and if we don't have fund balance we'll end up going negative. But as we saw um when the auditor was here and we saw how our financial position is we're sitting at a 67% of our subsequent year's budget um in our fund balance. So 33 00:09:00.880 --> 00:09:18.000 we have enough cash to be able to float ourselves through. Um Ramsey County did something very similar to this during the CO time. Um they kind of delayed payments to to help residents. Um which but then the burden actually shifts to the city because we don't collect our we 34 00:09:18.000 --> 00:09:32.720 don't get our money uh to help us cash flow. But we're in a much better position. We were only at 30% back in 2020. We're at 67% today. So we're in a much better financial position overall. take kind of a look at our enterprise 35 00:09:32.720 --> 00:09:49.839 funds one by one. The water fund, um we were um from a budgetary standpoint, we were projecting about a $23,000 decrease in our our net position or our fund balance. Um right now um looking at everything and projecting it, I believe 36 00:09:49.839 --> 00:10:04.160 that we're going to end up reversing that. Um, and we're going to end up about a uh 216,000 um to the good, which means total um about $240,000 to the positive side to 37 00:10:04.160 --> 00:10:22.240 it. Um part of of a lot of that additional component to it is other revenues. What you're going to see, and you'll see it when I when we go down and we look at the electric department a little bit closer, that it has been historical that his um historically we 38 00:10:22.240 --> 00:10:39.920 have not budgeted our interest um that we have our interest income. There's good and there's bad to that. Um the good part to it is is it does allow us to accumulate a fund balance. The bad to it is is that you could incorporate that into your rates and lower your rates 39 00:10:39.920 --> 00:10:55.200 down. Here's here's the other flip side to it. Right now, we're seeing, you know, a five-year bond um I think is at about a 4.2% um interest rate. Um, if you were to invest for five years, 40 00:10:55.200 --> 00:11:11.680 when I came here during just coming in 2021 off of the COVID years, you couldn't get a bond for more than6%. So, what happens if it flips the opposite way and all of a sudden you put a dependency hugely on that interest 41 00:11:11.680 --> 00:11:27.600 income? Then now all of a sudden you've got a shortage and you're going to have to make drastic increases in your rates. Now, for us at this point in time, it's worked out very well for us because we've had those 10-year plans. We haven't had to um every time we end up 42 00:11:27.600 --> 00:11:42.079 in a better position at a year end, it just means that we can keep delaying doing any increases in our utilities. Um we've been able to fund our three main categories of our infrastructure from our general fund and levy components to 43 00:11:42.079 --> 00:11:59.200 it. um meaning you know our streets um our parks um and um what is that third piece to it um I'll get to that if I can remember but we've actually put ourselves in a better financial position overall now some of the question as we 44 00:11:59.200 --> 00:12:15.279 get into the electric piece to it is is that we've been seeing some huge savings that have been part of the electric and so I kind of want to dive into that one a little bit more and that's item the third item because what we're going to make a suggestion is that we try to we 45 00:12:15.279 --> 00:12:30.959 will cap our power adjustment. It means we're going to be calculating some losses, but I think we can absorb those losses, but we'll get to that in a second. So, we're seeing that the water right now is is looking that we're going to end up pretty good for this upcoming year. 46 00:12:30.959 --> 00:12:48.399 Um, wastewater, um, we were looking at from a budgetary standpoint of change in our fund balance of about 94,000. Um, I'm projecting about 183, which is another $90,000 positive that we're seeing in our wastewater. 47 00:12:48.399 --> 00:13:04.720 Again, good news. Um, our electric fund, we were looking at about a $264,000 compared to our adop adopted budget. Um, I'm projecting at about a 472 um to the positive, an additional $28,000 on the 48 00:13:04.720 --> 00:13:23.519 positive side to it. the surface water we were looking at having a negative of about $187,000. I'm looking at it that it'll be about a negative of about 128. Again, a $58,000 improvement from what we have from a budgetary standpoint. So, so far 49 00:13:23.519 --> 00:13:38.480 everything is trending in a very positive light from the general fund to the four enterprise funds that I've talked about so far. Then we look at solid waste. If you remember, we've been running negative in our solid 50 00:13:38.480 --> 00:13:54.240 waste. Um, we've had fund balance in there. Um, I think back in 2021, we had about $650,000 of fund balance. Um, we have enough to cover our cash flow. Um, we don't have a lot of capital expenditures. The only capital component 51 00:13:54.240 --> 00:14:12.160 that we end up spending um on our our our garbage um hauling services is uh is carts. um we spend about 20,000 $25,000 a year on on you know building up our stock of of of the carts um themselves. 52 00:14:12.160 --> 00:14:28.240 So there isn't a huge need as far as you see some of the like you know like our our water or wastewater surface water that have a street component to it that have some huge needs and you're going to end up bonding for a major project and you're going to have debt service. You don't see that in the solid waste. So 53 00:14:28.240 --> 00:14:45.440 that allowed us to buy down that that fund balance for a number of years. Part of looking at that is that our city manager um in in consultation with city council, we had made the decision that we were going to go out for an RFP um in 54 00:14:45.440 --> 00:15:03.120 a few years, which we are currently we've gone out for the RFP where we um came back here in a workshop. We talked about uh the findings of the seven proposals. We made a recommendation to um bring in just two of those vendors um 55 00:15:03.120 --> 00:15:18.800 for a second, you know, for a real formal interview. There were four items that we kind of discussed with city council. Um you know, the customer service component, um the uh uh if there was an app or not having an app, truck 56 00:15:18.800 --> 00:15:36.480 technology, and then um bulky waste. So, we have met with those um two um and we threw out those four items in in a number of questions for each one of those vendors and we're wrapping everything together and we're in negotiation with one of them. Um again, 57 00:15:36.480 --> 00:15:51.600 can't make any of that public at this point in time and we'll be we're planning on bringing that back um to city council in June. The nice part about it, our rates um appear from what they're going to charge us are going to be going down significantly from what 58 00:15:51.600 --> 00:16:06.240 we're being charged today. Again, we had a very good um RFP where we had seven responses. And so it looks like we will not have to change our rates, but we should be closer to a break even point 59 00:16:06.240 --> 00:16:22.399 um to where um it won't require us to keep drawing down our fund balance nor increasing it um and not having an impact on our residents. And then we're going to also see that we're we're going to get some additional benefits, I think, for our residents um that we're 60 00:16:22.399 --> 00:16:39.279 pretty excited that to show you in June when we get to that point to it. But right now, um, we're pretty much where we kind of, uh, planned from an adopted budget, looking at a a negative approximately 197,000. I'm projecting we're going to be at about 198. That is 61 00:16:39.279 --> 00:16:55.360 not including the new contract that would go into place on September 1st. Um, so this is this is based upon our current contract. Um so this will actually go we won't get this negative 62 00:16:55.360 --> 00:17:13.520 um with the new contract in place and then in 2027 when we get to the budget u pieces we'll be much more even um to where we're uh where we where we want to be without a rate increase. Uh fiber optic um fund we love the fiber optic 63 00:17:13.520 --> 00:17:30.400 fund. Um again um you know we we look at you know that the fund balance should change to a positive about 74. I'm seeing it staying about the same at about 75. There's not a lot of variables that are really um within this. Again you know it's been brought up u year 64 00:17:30.400 --> 00:17:46.400 after year in our um by our auditor. You know this has a negative balance. It's going to take us another 20ome years to pay it off at this rate to break even. Um so um not a the greatest situation you know um if you remember there were I 65 00:17:46.400 --> 00:18:03.280 think three funds that were negative um this being one this one enterprise. The other two um actually are tiff districts and and um the money is being borrowed uh by uh the electric fund um to cover those. But they're negative, but they 66 00:18:03.280 --> 00:18:19.679 have a solid plan for payoff. Um because they're in tiffs and the tiff is generating, you know, um you know, property tax tiff coming in revenue on an annual basis that is dropping it down significantly and those will be paid 67 00:18:19.679 --> 00:18:37.200 off. Um and those will not be negative over time. This one is going to take is is really kind of our Achilles heel um piece to it. So, that's kind of a look at kind of our projection um right now of how we're looking at our enterprise 68 00:18:37.200 --> 00:18:53.520 funds and our general fund for the first quarter. Again, all of it looks good. We're trending in the right direction. One more time. Um and again, the credit goes to city council, it goes to our our uh city manager, and it goes to our department heads. um because they are 69 00:18:53.520 --> 00:19:11.520 very conservative and they really do a really good job not only in the budget process but also monitoring it throughout the year. The second item that we kind of talked about is kind of want to and if you have any questions please anytime uh so on 70 00:19:11.520 --> 00:19:26.960 this last stuff on the first quarter let's have some questions and and any dialogue that we need to have on that. So, would there be any value to being more aggressive with paying off the fiber fund? >> I mean, that's a good question. Um, 71 00:19:26.960 --> 00:19:44.080 would it be more aggressive? Uh, the fund itself, um, the real the only unless there's other revenue sources out there for people to get onto that fiber, which just has not shown itself. Right. 72 00:19:44.080 --> 00:20:01.840 >> Um the only way to generate additional revenue is by charging what we charge our departments to being on the fiber, >> right? >> Um so then you know we're hurting every one of our funds. Um because it's allocated um based upon the number of employees. Um so then it it would end up 73 00:20:01.840 --> 00:20:17.520 hitting the general fund, water, every one of the enterprise funds. Um so it's that's the only way to gener generate the revenue. Um the other way to do it is to transfer it from another fund. Um and again all of these actions require 74 00:20:17.520 --> 00:20:34.640 city council. Um the city manager and myself um did look at this uh probably about a year and a half ago. Um but at the end of the day, yes, it it's it's a negative fund balance. Um it's going to take 20ome years, but really what do you really 75 00:20:34.640 --> 00:20:51.760 gain from making it positive? You really don't. it it doesn't help you in any way. And and and kind of a I think the the proof of it really came out when we did this last bond rating. It's there. 76 00:20:51.760 --> 00:21:08.880 They get our whole financial statement. They see the comments that the auditor has put out there. It's a negative fund. Um there's a plan. It just takes a long time to, you know, to to pay it off. And yet our financial position in all the 77 00:21:08.880 --> 00:21:25.039 other areas are so strong that we ended up seeing an increase in our rating. So I guess to you know to a you know to answer that directly um we looked at it and we came to the conclusion that it really wasn't going to get 78 00:21:25.039 --> 00:21:40.720 >> okay >> a huge benefit and that's where we kind of decided well we went into that bond rating and he's got a and then our city manager has a smile because we went on the bond we went into the bond rating and we looked at how we've been performing and where we were at from the 79 00:21:40.720 --> 00:21:57.440 previous um bond rating and we said I can't see why we're not going to an upgrade and he was animate about it and our consultant said yeah no kind of oh no we'll be staying the same and he kept going no I don't understand that I don't see how we're we're going to do this and 80 00:21:57.440 --> 00:22:13.760 I said well I want to push for it so when we went in there we we you know you've got a number of information you have to provide the bond council ahead of time you have to go through and answer a whole bunch of questions and then you actually have a meeting with them um and they ask a whole bunch of 81 00:22:13.760 --> 00:22:28.240 other questions And what really came out of that to me that really sold to them was our conviction and our commitment to making sure that we were going to keep those 50% fund balance policies in place and 82 00:22:28.240 --> 00:22:44.080 that we've achieved them and that we're continuing to to achieve them. And and both um the city manager and myself in those meetings basically said as long as we're here, that is what we promise to keep. Um, and we're going to fight to to 83 00:22:44.080 --> 00:23:00.000 do that. We haven't had to fight with that because our city council has been so supportive of that. But that really was what really changed I think that that rating um and um and it's just the position that we've we've moved ourselves into from a pure financial. 84 00:23:00.000 --> 00:23:16.720 And then I think um I you know definitely the tenure planning was something that was brought up that they were very interested in. And so we had to send all of that to them supple um you know like supplemental information. They wanted to see all of that. Um and then it's it's um the support that we 85 00:23:16.720 --> 00:23:33.679 get from city council and and having these quarterly, you know, the quarterly updates on on the budget and getting your insight onto it and then our whole budget process. All of that um I think all weighed into um the very positive results. So, at the end of the day, Ryan 86 00:23:33.679 --> 00:23:48.880 and I said to one another that we're going to roll the dice and we're going to see what the results are. We're going to push to get an upgrade and see how it goes. If we get that upgrade, it kind of takes us back to the point of we don't see the value of of like transferring 87 00:23:48.880 --> 00:24:06.000 the money from some other fund to be able to cover that. So unfortunately, mayor, um that you're going to keep see seeing that uh that report in our financial statement for for I think a few years. >> So in terms So the bonding agencies, 88 00:24:06.000 --> 00:24:22.080 it's not a negative to them. The auditor kind of came back and said, "Yes, it's a negative fund, but we have a plan to pay it off." There's really no from a visit visibility perspective. There's really no like concerns with anybody saying, 89 00:24:22.080 --> 00:24:36.480 "Oh, well, you've got this and you should really be doing something about it." >> We are slowly >> Yep. >> Okay. and and and if you and part of the comment that our auditor um had said is 90 00:24:36.480 --> 00:24:54.400 that and and rightfully so, it does need to be brought up, you know, specifically to your attention so that you're fully aware that there are these negative balances that are out there. It also encourages to continuously look at the 91 00:24:54.400 --> 00:25:09.520 plan. How are you actually going to pay this off in which we have? And then on the flip side to it is that it is a worse situation if we didn't have fund balances in other areas. If if we were barely squeaking by everything and we 92 00:25:09.520 --> 00:25:25.279 were running negative on an annual basis in our general fund, in our enterprise funds and we were drawing everything down further and further, now your negative is now collectively it's a bigger portion. For us that 93 00:25:25.279 --> 00:25:42.640 hasn't been the case. Um we do have a plan. It's just a long plan. Um, but it is dropping down, but our other fund balances are increasing. So, from a percentage standpoint, it's low, it's gotten lower as an overall organizational, 94 00:25:42.640 --> 00:25:58.880 >> you know, percent. >> Um, so we are in a better position. Yeah. But it it's rightfully so that it needs to be brought up each and every single time and it's part of, you know, it's good >> technology elephant in the room. >> Absolutely. and to have these discussions that are are Yeah. Are are 95 00:25:58.880 --> 00:26:16.559 are we going to get there someday? >> Yeah. >> I mean, do we Sorry, Jason. >> Oh, no. You're you're good. >> Do we put I mean, I know the desire we're at 67% >> Mhm. >> 67% of our annual budget is what we maintain um or what we have currently. 96 00:26:16.559 --> 00:26:32.559 Correct. >> Correct. At the end of the year. >> And I know the desire is to keep at least 50%. 67 is awesome. Do we put a cap on that? And then anything that we hit above that I mean is there I mean could we say anything above 70% then that we throw in here to kind 97 00:26:32.559 --> 00:26:47.440 of >> we certainly can >> extra payment so to speak or something like that I don't know >> that that's that's an that's excellent. Um so if if you remember >> when out options >> no no that's fantastic. So, in my mind, 98 00:26:47.440 --> 00:27:01.840 um, as we were going into the 2027 budget, um, because over and over again, you know, I've been saying because of the infrastructural needs that we that we have. Um, and, uh, the third component now I remember is buildings. 99 00:27:01.840 --> 00:27:17.840 Um, so to me it was to me I would like to see us at least at that 60% level. Um, so that additional 7% to where we're at, we could comfortably um take out of the general fund about a 100 00:27:17.840 --> 00:27:34.159 half a million dollars um and still be above that 60%. To me, that and we haven't gotten quite to the end of of where we're going to flush out at until after the department heads um you know um get an opportunity to go through and present their budgets 101 00:27:34.159 --> 00:27:50.559 um to the city manager and myself before we present it to city council. I want to see where we're going to be at. Um, if you remember, part of what we're going to target for is no more than a 6% levy increase this upcoming year. What I've been saying is that you take those three 102 00:27:50.559 --> 00:28:07.120 components, the buildings, the streets, um, the parks, we're already looking at pretty dog on close to a 6% increase. You know, we've got cost of living. Um, we're in the third year of union contracts. The cost of living is 3%. Um, you have other costs that are rising. 103 00:28:07.120 --> 00:28:22.640 So, how do we first of all just get to that 6%. Um, you know, as a levy increase and that's where, you know, my initial thoughts were that that half a million dollars could be utilized and moved into one of those 104 00:28:22.640 --> 00:28:37.520 three buckets so we don't have to levy quite as much um into in into there. Now, if we can achieve in my mind, if we can achieve that 6% and we still had that half a million dollars left over, 105 00:28:37.520 --> 00:28:53.919 this is this is a great avenue to to put it into if if if the city council so desires or you still can put it into those buckets and offset it in future years um the levy needs to it. So, those will be part of the discussions as we 106 00:28:53.919 --> 00:29:10.240 get into the budget. Do we want to do any of that? Um, at that point it first will be do we need to to get it to a 6% and then if we don't need to or part of it, do we want to move it to some other funds and any option that's open? Um, 107 00:29:10.240 --> 00:29:26.720 totally totally open with >> this originally came from electric. Is that where this came from? The fiber money. >> Yes. >> So we're paying ourselves back then pretty much. Right. >> Pretty much. Are we paying interest to the electric or is there interest is it interest free or how is 108 00:29:26.720 --> 00:29:45.200 >> well act actually the the um it it is not it it's actually on the financial reporting it is not coming out of the electric it's being split between um two of our enterprise funds I think it's wastewater and water or I I can't 109 00:29:45.200 --> 00:30:01.520 remember exactly the two of them they they split and they show the advance showing in in in out of there the electric fund is has loans out to the two tiff districts that also have negative and that is getting interest. Um, and I believe the interest rate on 110 00:30:01.520 --> 00:30:17.200 those is 4%. >> Okay. This this fiber is there, but we're not paying anybody else interest. We're not paying banks or anything. It's just how money's moving around. >> Okay. >> And I guess at the end of the day, it's >> you know >> what >> what did you say Brian? I'm sorry. 111 00:30:17.200 --> 00:30:33.760 >> Came from the electric department though. It was later separated out uh by because of the debt that the electric was seeing that it might affect their bond rating had they go out for any kind of bonds but it originally came from there. >> Okay. Yeah. I mean it's just a money shift. 112 00:30:33.760 --> 00:30:49.919 >> Yeah. Okay. All right. >> So currently when you talk about the other balances this creates a positive in other balances. Correct. >> What creates a positive? Well, if if 113 00:30:49.919 --> 00:31:06.320 we're paying ourselves the I'm sorry, what's the total debt that the fiber is at? >> Um I think it was somewhere about 1.9 million. >> So So this 1.9 million shows up on other line items and other funds as positives. 114 00:31:06.320 --> 00:31:21.760 >> Uh shows up as negatives. It it shows up as a negative advance. Um so it actually is offsetting the cash that's available in those other funds. because we can't >> a lean against the fund pretty much. 115 00:31:21.760 --> 00:31:38.559 >> Exactly. And the same thing. So this one has the lean against two other enterprise funds. The two tiff districts have lean against the electric fund. So if I if I were to go out and look at how much cash is actually in so what we 116 00:31:38.559 --> 00:31:53.279 report what you're going to see in the cash is net of these negativities. Um, but if I were to go pull up on our system today, you'll see the caches are higher because we just show it from a 117 00:31:53.279 --> 00:32:10.880 from a um a reporting component to it than negative. So really right so in other words we have to make it whole when we do the publication itself. It can't show 118 00:32:10.880 --> 00:32:29.200 negative. Bottom line, this fund has no cash in it, but and then it fund balance is negative, but it bottom line is zeroed out because it has an advance. >> Even if we paid it, I mean, I guess 119 00:32:29.200 --> 00:32:46.399 ultimately we would would we ever have a we would never really want a positive balance in this fund anyway, right? you know, I really can't answer that. I >> given the state of the fiber as it stands now and everything. 120 00:32:46.399 --> 00:33:02.720 >> I would my my my my opinion would be no because you're not trying to utilize it in different ways. You're not trying to market it. You're not trying to make it a true ongoing business. It's more or less >> most of it's obsolete right now. The >> equipment. Yeah. We're just it's just 121 00:33:02.720 --> 00:33:17.440 dying on the vine. We're just waiting for it to be done. Done. >> Yeah. And you know, from the original standpoint, you know, there's um you know, because there's um contracts that'll be expiring and probably because this will get even worse um as far as 122 00:33:17.440 --> 00:33:34.000 being po, you know, having the $75,000 to the positive, you know, each year because you originally um you know, signed up um like Oakdale um Maplewood. Um, so there's a part that 123 00:33:34.000 --> 00:33:50.720 they advanced. So then you recognize over the 20 years. Well, you got about seven years left and those 20 years are all done. Um, and there's no additional revenue coming from them. And then um originally there were um a number of 124 00:33:50.720 --> 00:34:06.559 state of Minnesota contracts that were signed um for you know uh different police agencies. Uh a lot of them sunseted after eight years. Um and so right now we only have I think one still in existence. Um and that isn't for a 125 00:34:06.559 --> 00:34:23.919 lot on an annual basis. Uh the library used to be a part of this. The library went away from the fiber. So we we've lost streams. >> So and then we have we we have we distribute some of the cost for our own 126 00:34:23.919 --> 00:34:40.960 utilization from our city departments. Um but yeah, >> that's what I appreciate. Uh most of the time I think something like this would be glossed over with a city or a council because it's not doesn't make us look good, >> right? >> But you know what, we talk about it. We want to make sure it doesn't happen again. Stuff like that and we need to 127 00:34:40.960 --> 00:34:55.839 address it. So that's I'm very happy with the council and staff is you know what, we talk about things that work and we talk about things that that aren't great. >> Absolutely. Um, and I think that's, you know, at least in my time here, that 128 00:34:55.839 --> 00:35:13.359 open dialogue is what's put us in a very positive position. And it's really not just one fund, it's across the boards. Um, and I think it's, you know, um, that and the willingness to do the planning and and looking out and making those tough decisions and tough calls. And 129 00:35:13.359 --> 00:35:28.960 again, you you you have to make some very tough decisions, especially when it's having impact on our residents. um because again we have a heavier reliance on that property tax. Um but we're putting ourselves in a better and better position um to make sure that we're 130 00:35:28.960 --> 00:35:44.880 covering all of the needs in the city and we're we're not not to to coin a phrase um but I guess I will kicking the can down the road. Um, so we're addressing those those needs and and to me, um, I'm very impressed by that and again, a lot of the leadership from from 131 00:35:44.880 --> 00:36:01.599 my side on on a daily basis comes from our city manager and the planning process and then it's totally supported by city council. So I think we're in a very good direction and and in a good position. Um, so I thank everyone for that. Well, would it benefit our city if 132 00:36:01.599 --> 00:36:19.440 any of these new fiber companies coming through would extend through our lines to go through our our >> conduits? >> Conduits that we already have in place to reuse what we have put in years ago. 133 00:36:19.440 --> 00:36:35.200 >> I know Brian's been working with the groups and it's hasn't been going well for that part. I'll I'll defer that to the city manager because he has been more active in that side to it. Um >> we did try um they were installing some fiber in town here. U the path that they 134 00:36:35.200 --> 00:36:50.000 were going it met like part of the path but not all the path. So and where they're starting stopping didn't turn out to be exactly where the conduits were. So they just it was easier to not use it and put their own in which is unfortunate but so we try when we can. 135 00:36:50.000 --> 00:37:08.160 >> That would have saved us a lot of money. Okay. >> Any other questions on the quarterly update? >> No. >> Looking good. Appreciate it. >> Then we're going to move and and kind of look at net position and cash. Um and so 136 00:37:08.160 --> 00:37:24.560 what I've done um is just kind of to to show you where the change in the net position. Um and you'll see from the 2025 budget um the then the 2025 actual and then what the variance is. Um and 137 00:37:24.560 --> 00:37:41.200 you can see you know what I kind of mentioned before in that general fund um we were looking at you know you know at the end of the budget and the amendments um that we were looking at being a minus 20 uh we ended up being 1000 or $910,000 138 00:37:41.200 --> 00:37:56.240 to the positive. So, it becomes a variance of $930,000 to the positive. You can look at we have all of our our funds that are are budgeted um shown here. And you can see that um for the most part they're all 139 00:37:56.240 --> 00:38:10.800 positive. We have a couple of negatives, the the water and the wastewater um surface water and fiber optic um funds. Um but you see one that to me really stands out a lot is the electric fund and that's why we will dive into that 140 00:38:10.800 --> 00:38:27.440 electric fund um in a little bit. Um kind of want to go through and kind of look at um you know when we look at fund balance fund balance has different categories. Some of it can be restricted for specific uses. Um some of it's unassigned or unrestricted. In other 141 00:38:27.440 --> 00:38:44.800 words, it can be used for for anything. Um and that's what this next um um page will show is is of that change for the year. What is truly unrestricted, unassigned um and you can see when we look at it from that standpoint again um 142 00:38:44.800 --> 00:39:00.079 you're seeing mostly positive amounts across the board. um which is you know the biggest one that has a negative is this again that solid waste which that's what we had planned um is to buy down some of that um fund balance or net 143 00:39:00.079 --> 00:39:17.200 position um until we went out for an RFP and and hopefully we would get um better rates um that and and not have a a significant impact on our residents and then when we get into our financial planning one of the biggest things that I do is I don't necessarily like to look 144 00:39:17.200 --> 00:39:32.000 at net position because there's other components that are a part of it. It's really looking at what do we have in cash. And so this shows how we we ended up changing our cash. Um it'll show what our beginning cash balances were. It'll show what our what our ending cash 145 00:39:32.000 --> 00:39:50.240 balances are and what the change um was. And again, you can see from a cash um perspective, we're seeing a lot of positives across the board. Um, solid waste again is the one that's negative, but again, that's kind of what we anticipated as we went in there. Um, but 146 00:39:50.240 --> 00:40:06.240 again, you can see, you know, if I just go back one, you can see unassigned in the electric is 1.8 um million, but then it's 1.4 when you get into looking at the actual cash change. Uh again, some of that is is due 147 00:40:06.240 --> 00:40:22.960 to some accounting principles um that have to be incorporated and we'll get into that when we go into our next item. Um but again, across the board, whether we look at it from, you know, overall net position fund balance to unassigned fund balance and cash, we really did 148 00:40:22.960 --> 00:40:41.200 perform very well in 2025. >> Can you I'm again I'm not an accountant, but maybe you can explain it to me. the surface fund um is the unassigned unrestricted, you 149 00:40:41.200 --> 00:40:57.599 know, we're at, you know, 301 net change, but then the change in cash is 1.1 million. >> Yep. Um you'll see uh a bigger difference between those two components looking at unassigned and then cash um 150 00:40:57.599 --> 00:41:14.319 in the water surface water and the wastewater. Um and that's because of the bond. >> Oh. >> Um because the cash will reflect the bond money that hasn't been spent as as of year end. >> And so you and that one I'm glad you 151 00:41:14.319 --> 00:41:30.880 caught caught that. And that's the thing. >> So when I do the when I do the 10-year plans, I will reduce cash and I'll show it on a line. I reduce the cash by what bond is outstanding because that bond is really and that's why it's not unassigned. It's restricted. it's 152 00:41:30.880 --> 00:41:47.200 restricted for a specific use even though it's in your cash, right? >> So, I'll reduce the cash by that amount of that balance. So, when we're doing our future planning and looking at everything and our needs, we're not incorporating something that's really should be being spent. Um, it's just a timing piece to it. 153 00:41:47.200 --> 00:42:06.160 >> Okay, >> good catch. Excellent. And then this next um item kind of want to show you the electric fund and kind of show that net position in cash and kind of break it down into some different 154 00:42:06.160 --> 00:42:23.920 categories and kind of show you a little bit more about it. But more importantly at the end of the day, um this item and then it it is on um the consent item for city council for tonight is that we would really like to uh move to capping 155 00:42:23.920 --> 00:42:40.640 um the power adjustment um for the summer months. um and show you through here that we believe, you know, it it's a start in the right direction um to to be able to um I guess more equalize the 156 00:42:40.640 --> 00:42:56.079 rates um that we're seeing in the electric. Um it's and I think it's a beginning. Um but we'd like to try start it here, see how this plays out and then look in the future for some other different adjustments and and I'll kind of walk through that part to it. But 157 00:42:56.079 --> 00:43:12.560 when we look at our net position, you know, um changed um you know, $2 million um overall our cash about 1.4. Um again, some of the items that you'll see that we have investment income and we don't budget that. Is that something city 158 00:43:12.560 --> 00:43:27.599 council wants to do in the future? There's pros and cons to it. Um can we do some of it from a conservative standpoint? Yeah, I'm not going to disagree with that. That might be a good idea. We want to do all of it. Um when we're sitting, you know, at, you know, 159 00:43:27.599 --> 00:43:43.760 rates, investment rates over 4% where what happens if they all of a sudden end up uh being a half a percent again someday? Um then we've got a hole of, you know, a half a million dollars. Um there's uh so these are looking at it 160 00:43:43.760 --> 00:44:00.000 from different budgetary line items. Um so our energy power sales um from what we budgeted was down about 204,000. It either and I put them in categories. Does does it affect net position? Does it affect cash? Some of these affect 161 00:44:00.000 --> 00:44:16.480 both. Some of them only affect net position um uh personnel um services. In other words, uh costs for our personnel was under budget by 106,000. Um processing fees weren't budgeted. They were 130. the air budget in the 162 00:44:16.480 --> 00:44:33.680 2026 budget. Um other changes um that are non-cash were 246. There's a whole list of small items that make up that 246,000. Inventory uh $276,000 increase 163 00:44:33.680 --> 00:44:48.800 cash. We actually did the outlay of the cash. Um but but when you do a financial statement um you do an inventory um as of December 31st um our inventory grew $276,000. 164 00:44:48.800 --> 00:45:06.400 So we don't recognize that it becomes an asset um until um we actually utilize that. Um so that's where that shows again it's an accounting um component to it. Um power purchase line item was under budget 501,000. Uh we don't budget 165 00:45:06.400 --> 00:45:23.920 depreciation, but depreciation um you know was $151,000 for the year. Capitalized assets. We paid $125,000 for assets that we capitalized. But what do we do? They show up as an asset and they get depreciated over time. So then you 166 00:45:23.920 --> 00:45:38.560 know the the capitalized asset and depreciation work together over the useful life of an asset. Um but it does impact your net position. um pension and oped reductions. Um we 167 00:45:38.560 --> 00:45:55.760 have an actuary that does our pension liabilities. Um it actually did a reduction of $174,000. So it shows as a reduction in our expenditures as a journal entry that you do for it. It didn't affect cash um but 168 00:45:55.760 --> 00:46:11.839 it affects your net position. Now things can change. Uh inflation, you do it actu uh you do the actuary next year and all of a sudden before you know it you this could be um uh increase $400,000 169 00:46:11.839 --> 00:46:27.920 um and all of a sudden 330. So our net position could actually drop $330,000. Doesn't impact cash, but it how it's reported will end up changing. um contractual services um that were budgeted but weren't spent about 116,000 170 00:46:27.920 --> 00:46:42.960 and then there was capital that was budgeted that wasn't spent of 147. If we add all those in the net position it'll come to that $2 million yet what impacted actual cash was less um and came to that 1.4 for. And so then I kind 171 00:46:42.960 --> 00:46:59.119 of broke it down into different categories to kind of illustrate a little bit differently and saying what's not budgeted, what's over or under budget, and then what's purely a financial reporting. Um, and so if you added up the not budgeted and over and 172 00:46:59.119 --> 00:47:20.560 under, you would end up um getting um what the cash is and then the financial reporting and the cash is what ends up coming to your net position. power adjustment. As we see by the the graph, 173 00:47:20.560 --> 00:47:38.000 when we look at our our power adjustment that we then add on to the rate um for utilities, it it spikes and it spikes in the four summer months, June, July, August, and September. 174 00:47:38.000 --> 00:47:54.480 Um, I've got this nice spreadsheet that I can can show you. And actually, I'll kind of pull it up real real quick. Um, these numbers are based off of this spreadsheet. Um and in this spreadsheet we take all every 175 00:47:54.480 --> 00:48:14.960 residential service that we build, every commercial service that we build, um all the number of services that are build that every single month month in the consumption. We have the monthly service charges, the annual service charges. We have the KWH 176 00:48:14.960 --> 00:48:33.440 rates that are given um each month. Um, we annualize that. Um, there's another component that ends up coming into this and that's at the end. It shows that as a bill, it can either be known as the 177 00:48:33.440 --> 00:48:50.000 fuel clause, but it's shows up as a power adjustment on on an individual residential bill. And in our rate, it was always structured to cover 6 cents. um as rates have gone up um and no 178 00:48:50.000 --> 00:49:05.920 longer um it exceeds that. Um, and so you can see in this um column right here um that that's what it's over um that six cents because here's the actual average. 179 00:49:05.920 --> 00:49:22.880 And then in addition there is by our our supplier MMPA there's an additional adjustment that they put on and that's what it amounts to percents. So when you add up this what's over and this you'll 180 00:49:22.880 --> 00:49:39.119 end up getting what is the fuel clause or the power adjustment and you can see in January it was it was zero it was 1 12 cents 18 23 36 then you get in the summer months it's you know it's almost 181 00:49:39.119 --> 00:49:56.800 58 46 46 52 3117 well our rate already increases when we're in the summer months. In the summer months, it it goes from 11:43 to 1251. So, if you add up those two 182 00:49:56.800 --> 00:50:14.240 together, we're getting, you know, higher spikes in those summer months in addition to usually consumption is up during that time. Um, and so many of our residents are experiencing a significant increase in their utility bills during those summer months. So, what we would like 183 00:50:14.240 --> 00:50:30.400 what we're proposing and it's also again on city council for in the consent is to kind of to to do kind of a pilot test and kind of and make this go into effect for this summer um to see if we were to cap that off what type of impact that 184 00:50:30.400 --> 00:50:46.640 would end up having. And then down below is the commercial. So, just did a tab with all of the same information. And what I did was that in the fuel clause I've highlighted right here is that during the summer months I cap it 185 00:50:46.640 --> 00:51:02.640 at 4 cents. Um instead of being 56 58 or whatever it would be it's at 4 cents. If we do that it'll result in a change of a loss of of revenue of $171,000 186 00:51:02.640 --> 00:51:20.760 for our residents. This is based upon 2025 consumption and for commercial it would be a reduction in revenue of about $16,000 for combined reduction in revenue of about 277. 187 00:51:21.599 --> 00:51:38.480 I think you've already seen that we should be okay in this fund to be able to do that and and and we may after this want to do it even differently. Um but we want to try something to start out. It was kind of 188 00:51:38.480 --> 00:51:55.680 interesting. I kind of looked at the total rate that we have today and the revenue that we generated and where our revenue is. And it was kind of interesting that our total revenue comes out to about 11.4 million based upon the 189 00:51:55.680 --> 00:52:12.000 consumption of 2025. And then I compared that to what we have for our budget for 2026, which is um almost 11.5. Right now, our rate is showing if we have all of those revenues that we would end up having a difference of about $87,000 190 00:52:12.000 --> 00:52:28.480 negative. That's just the rate part to it. That's not any of the other revenue items that we we do. So, in certain ways, it shows that our rates are okay, which really get building up our fund balances year after year is that we don't we don't we do not at this point 191 00:52:28.480 --> 00:52:43.839 in time budget that investment, which was like $588,000. um last year um you know we're we're now budgeting a couple of other items and we've had savings um from where we budget. So that's part of as we go into 192 00:52:43.839 --> 00:52:59.200 the budget process. We we need to make sure that we've got our budgets as tight as possible that we're not, you know, having extra money so we're not having these um we're spending considerably under our budgets. If we can prove that out over a year that we we get through 193 00:52:59.200 --> 00:53:14.960 and we're we're lowering where we're at, then we could actually drop our overall rates um you know and and do more of an analysis. But right now, just at a high level, our rates are really where they should be to support the operation. Um 194 00:53:14.960 --> 00:53:30.880 the revenue savings are coming from other sources and that's something for a future discussion with city council. Do we want to start moving towards budgeting some of that? That's where the city manager and myself said, "Okay, in in a roundabout way, that's what we're going to try to do by projecting about a 195 00:53:30.880 --> 00:53:48.400 $280,000 loss in revenue that we know that we can absorb and also help the residents during those summer months. Um, and so that's kind of we'd like to try it here and try it this summer and see what the results are. Um, and see if residents notice it. Um, see kind of how 196 00:53:48.400 --> 00:54:02.880 things kind of flush out, what the reality of the loss really is. Um and then um look at as we're going into next year maybe making different types of changes maybe in the rates maybe more of this capping um of that fuel cost 197 00:54:02.880 --> 00:54:20.160 adjustment piece to it. Um so those are kind of the thoughts uh and definitely we'll open it up for kind of discussion on to that. But that item is also with the same documentation showing up on city council for consent um for hopefully to have city council approve 198 00:54:20.160 --> 00:54:35.280 it so we can put it in place this for these summer months. >> When was the last time we had a rate increase again for electric? >> Uh I think it was 20 maybe 22. >> Yeah, 199 00:54:35.280 --> 00:54:51.920 >> that's good. I mean that's plateauing now. can see from there without >> making a radical change. Yep. Yeah. And that's where we're trying to this was kind of >> not like we raised it last year, now we're giving away, we raised it the year before, we've had a good level where we've been. I like that. >> And that's what we're trying we're 200 00:54:51.920 --> 00:55:08.079 trying this out to see. Um, and part of it is is is that when you do look just from a I always equate it to myself. Well, also when I open up my Excel bill and all a sudden I see a bigger spike when it comes in the summer months because my 201 00:55:08.079 --> 00:55:24.079 consumption's up too. Um, it's kind of hard to handle. Um, and this we're trying to even that flow a little bit and see how this goes. Um but it's amazing um when you just adjust something just like a scent um across the board. 202 00:55:24.079 --> 00:55:40.480 It can we were we were entertaining looking at instead of having that including six cents um in the budget uh or in the rate to move it up to seven cents equates to like a million dollars um in loss of revenue. And I was like 203 00:55:40.480 --> 00:55:54.880 okay we got to come up with a different plan here and kind of look at that. And that's where we looked at those summer months and kind of decide, okay, let's start here and target that first. Um, and see how that plays out. Um, and then we can expand upon that, you know, in future years. 204 00:55:54.880 --> 00:56:12.400 >> Yeah. This will go into effect by the May billing or June billing. >> It'll go for June consumption that actually goes out in July. Okay. >> Because we we bill after the month of consumption. >> Uh, Dan, thank you very much for this. I I appreciate this. And I think this is 205 00:56:12.400 --> 00:56:29.200 implied. I just want to hear it. With this plan, you you believe that we the city will not seek a rate increase in the next budget cycle. Is that >> Oh, guarantee it. >> Okay. >> There you go. >> And it was implied. I just wanted to 206 00:56:29.200 --> 00:56:46.079 make sure we're on the same page. >> Oh, yes. Yep. Yep. >> Yep. Absolutely. Yep. >> I think it's a safe way to dip your toe in and see where we got >> and see how it see how it plays out. Yeah. >> Well, as long as the residents save a little money I'm sorry. >> As long as the residents can save a 207 00:56:46.079 --> 00:57:02.319 little money, that's the biggest thing. >> Exactly. And that's what we're just trying we're trying to to to help out um a little bit and kind of even I I always look at things, you know, I mean, if I could pay the same amount, I can budget for it and then all of a sudden you get these big, you know, hiccups. That's 208 00:57:02.319 --> 00:57:19.119 what I think creates more issues for at least for myself and I think for other individuals and that's where we're trying to ease that a little bit um and see how that plays out. But um and yes, there will be no rate increase in 2027 on the electric side. >> Good. >> Right. Right. City manager, 209 00:57:19.119 --> 00:57:35.520 >> that's correct. >> And well, unfortunately lost when we had our we had an AC control program once upon a time a while back, but uh we no longer got credit for that program through our power agency. So that went away, but that helped with these summer spikes. Um, so this is a nice 210 00:57:35.520 --> 00:57:55.440 alternative. >> That's the one where they could cycle it on you. >> Yep. >> Yeah. I would be giving my AC a bear hog. Nobody's going to turn that off. >> And so, so again, this documentation here um will be um you know, in city 211 00:57:55.440 --> 00:58:09.760 council on the consent item. Um hopefully that uh you'll you'll pass that. Again, we're looking at uh an approximate savings to residents about 171,000 and for commercial owners about 106 for a total savings about $277,000. 212 00:58:09.760 --> 00:58:27.200 Um so that item will will be um not on your not on your scheduled program, but we have a little bit more time a little time left. Can't believe I talked this. >> Thank you for the explanation. That was great for what we're doing with the with electric. So that's that's a lot of 213 00:58:27.200 --> 00:58:43.440 questions that would have came up. >> Yeah. Yep. >> So now you're going in extra innings. >> We're going to go into extra innings. Just kind of want to show you this is kind of uh this is Ramsey Countyy's assessor's report for 2026 which is will be applicable for pay 27 which we'll be 214 00:58:43.440 --> 00:59:00.680 working on the budget. And you can see here that um you know overall with all for nursing pay for all different types of properties that we're going to see about a 1.6 6 uh% decrease. Um, 215 00:59:00.799 --> 00:59:19.920 >> sorry, I'm just laughing at the because the projector or the screen down here is just showing the mayor. >> Oh, is that what I look like? Going to say, who's that old guy on the screen? >> There we go. Thank you. >> If we look at uh residential, um, we're 216 00:59:19.920 --> 00:59:35.440 going to end up seeing about a 1.2% 2% decrease in our median value from 25 to 26. So this is the first decrease that we've seen in residential property in in a number of years. Um so you see that things are tightening up there. There was an article um I think in the Star 217 00:59:35.440 --> 00:59:52.480 Tribune today that shows kind of uh the last um I think it was a couple of months of of sales um that have shown like a 3% decrease in um price um on homes. Um, and so we're seeing, and I've 218 00:59:52.480 --> 01:00:09.440 read a number of articles and they're projecting that we're going to see home prices decrease, especially as interest rates stay the same or increase a little bit. I think they're right now, I think, 30 years at somewhere at about a a 6.4% interest. Um, and they see that's going 219 01:00:09.440 --> 01:00:26.640 to kind of if it goes up a little bit, we're going to see the prices dropping down a little bit more on on >> My wife's still seen them go up, so that's good. >> Yeah. Um and then we do see and I'll just kind of just show you real quickly the um commercial um commercial is actually 220 01:00:26.640 --> 01:00:42.799 increasing um which is a good thing because then it shifts some of the burden um >> you know on any potential uh levy or whatever um you know to commercial from residential um but again we don't have a great deal of of commercial 221 01:00:42.799 --> 01:00:58.160 >> and this is Ramsey County. >> This is Ramsey County. I >> was even taking St. Paul downtown St. Paul into a account for this. >> I'm only looking right here just at North St. Paul his area to it and that stuff. >> I didn't know if Ramsey County if they just you know how that takes if it's just a snapshot for so yeah glad to see 222 01:00:58.160 --> 01:01:14.079 ours are going up. >> Yeah. And we can definitely look at what what's uh well they they break it down into different areas. >> Yeah. I just just hear the horror stories about what's selling down there commercial wise and downtown. So >> it's kind of kind of funny that you know here's the downtown in St. Paul that 223 01:01:14.079 --> 01:01:29.200 they're saying it's a 26% increase, but we know that that's not true because the most recent articles that they're selling things uh lot lower than >> the estimated value. So with that um is 224 01:01:29.200 --> 01:01:44.240 where it ends up coming. If if uh you know a business purchases a downtown business for a lot less then what does the owner do? They they go in and they petition. And what do they do? you can abate the taxes um for three pri for the 225 01:01:44.240 --> 01:02:00.799 current year and two priors. Um so um then we end up seeing adjustments on on what property tax gets distributed. So, um, that kind of shows you the market values. And Dan, I have kind of just get a quick input on >> we're good, 226 01:02:00.799 --> 01:02:17.119 >> uh, quick input on, um, I think as everybody's aware, um, that the pennies going away, which kind of creates kind of an issue um, for both, you know, you know, for all businesses and we're not going to 227 01:02:17.119 --> 01:02:35.040 have pennies eventually to give out to people has changed. So, it's kind of like what do we want to do with that um kind of component to it and um a number of cities and and have one just in front of me that force lake um did a you know 228 01:02:35.040 --> 01:02:51.680 staff report to uh their mayor and city council members at looking at kind of two options. One was a a no change policy um with utility billing um credit option. So, in other words, um, if somebody came in, you know, so the 229 01:02:51.680 --> 01:03:07.040 calculation is going to run the same way, but it it ends up we they give no change. It just goes a credit on their bill. >> That makes sense. So, I came up with $130 and it was $129.50. That 50 cents would go on the next time, so they credit it. >> And again, if they move if they move out 230 01:03:07.040 --> 01:03:22.960 of North St. Paul, you know, they get a refund check of their full amount. Um, that way we're not shorting um, you know, the individual at all. The other option, you know, and a lot have done is you go to a rounding policy, which creates so many other issues. Um, and so 231 01:03:22.960 --> 01:03:38.480 really they recommended going with that no change um city. And for the most part, you know, everything that's being charged on um for uh you know, at least our rates for um parks and um the 232 01:03:38.480 --> 01:03:54.480 permitting and that stuff is all zeros at the end. It's really the utility billing component to it. Um, and so really that would be kind of, you know, you know, seeking your direction, but kind of like to move into a no change policy. And so then we do away with 233 01:03:54.480 --> 01:04:10.720 change. Um, but then it just goes as a credit. And again, um, when somebody moves out, they get the full refund. Um, it shows the pennies show up there. Um, it helps us out with balancing. It helps us out with everything else on a daily basis. We don't have to look at um, sort 234 01:04:10.720 --> 01:04:26.319 of rounding mechanisms in our in our systems. Um and it just it just it doesn't increase our costs at all. Um and it would be something that you know we would advertise you know um you know for a month or two months u before we 235 01:04:26.319 --> 01:04:43.520 would actually implement it. Um and you know um we wouldn't just throw it on people tomorrow. Um but that'll be an item if if uh city council's up you know um for it. It' be an item that would go in front of city council to be accepted with a policy. I see that as being very 236 01:04:43.520 --> 01:04:58.720 fair. >> Okay. >> Yep. Rather than trying to keep track of things. >> Okay. Fantastic. I can't believe I made it this long. Brian told you I could talk this long. Uh >> we didn't even get a seventh inning 237 01:04:58.720 --> 01:05:13.599 stretch. >> I know. Uh and then the the last thing I just kind of want to let everybody know, uh staff updates. We have uh an individual who's been with us for 10 years that'll be retiring on Friday. Um, thanks to um the support um from our 238 01:05:13.599 --> 01:05:30.960 city manager um and then from Jenny from from our HR perspective because she wears multiple hats in our organization. um that um we um went out and posted that position um early um and um we did 239 01:05:30.960 --> 01:05:46.240 uh um the initial part to it was promoted uh an internal posting and so we have an individual who's working on their accounting degree um and they got promoted into um Jackie's uh position and the two of them have had the ability 240 01:05:46.240 --> 01:06:01.520 to work together uh for about a month and a half Um and uh she's all ready to go. Um and so we should have no we should be pretty seamless. We should have no hiccups um on that. And then that leaves a vacancy that'll be vacant 241 01:06:01.520 --> 01:06:18.480 um after Friday. Um we went out and posted that position. Um and uh we had 89 applications. Um and uh we uh three of us went through each and every one of the applications. We combined our our 242 01:06:18.480 --> 01:06:34.319 ranking. Uh we offered um I think 14 or was it 14 interviews. Um some um declined um I think we ended up interviewing nine and then we brought uh three excellent candidates back in for a 243 01:06:34.319 --> 01:06:51.359 second round interview. Um we um were split. We had we had four on the interview. We were split two two uh and we had each had one and two you know in reverse piece to it. Um but we did uh go and offer to one individual. Um we could 244 01:06:51.359 --> 01:07:08.720 not um reach agreement on salary. Um and part of the way I look at that is that I'm I I don't want to upset the apple cart as far as our existing staff is concerned and pay somebody more who's already been here for years. Um and so we weren't able to make agreement um with that. So we went to the next 245 01:07:08.720 --> 01:07:25.359 candidate. Um and uh we have again that person was first on on two of our lists. Um we offered that position. They have accepted. They have gone through the background check and the financial check and everything's coming out really good. And they'll be in place on June 1st. 246 01:07:25.359 --> 01:07:40.880 They'll be uh coming and joining uh this wonderful nurse St. Paul um team. And so uh yeah, so very excited about that. Um we will miss Jackie uh quite a bit. Um she's done an excellent job. She's been um responsible for our accounts payable, 247 01:07:40.880 --> 01:07:57.599 our payroll. Um and she's done a fabulous job in in uh in her time here. Um but um I think we're sitting in a very good position um and moving forward and I think we've got a strong candidate now coming in um to replace um Melissa 248 01:07:57.599 --> 01:08:14.400 who moved over to Jackie's uh role. Um, and so I think we'll um we're I think we're stronger now with duplication of of uh services um than we've ever been in the past and we're continuously improving that. And so I thank city 249 01:08:14.400 --> 01:08:31.120 council for all the support that you've given to me and for u my team. Um and I want to give a lot of uh thank you to the city manager for allowing us to be able to move ahead of the process um instead of waiting for a vacancy. um we didn't create any additional costs um to 250 01:08:31.120 --> 01:08:47.520 our budget doing it this way um but um he helped out greatly and then Jenny um for doing all of the HR stuff and then um making herself available on the interviews um and unfortunately we weren't the only ones who were interviewing police was interviewing 251 01:08:47.520 --> 01:09:03.440 public works was interviewing electric was interviewing so uh she was running all over the place and this is the first time I think that Jenny really realized how lucky it was that the city's not like 30 miles by 30 miles cuz she would have been all over the place. But yeah, 252 01:09:03.440 --> 01:09:19.359 so no uh so eventually um you know hopefully you'll have a chance to to come down and um see um our new staff member and and uh yeah, we're a friendly group. >> Great. >> Yeah, we're good. 253 01:09:19.359 --> 01:09:34.640 >> So with that, if there's any follow-up questions, I think I >> No, I'm good. >> You're pretty good. >> I give you six minutes back. Oh, good. Well, appreciate all the great information and thank you so much as usual. Always learn a lot and know how 254 01:09:34.640 --> 01:09:51.719 to move forward. So, if there's nothing else, I'll ask for adjournment. >> So, move. >> So, move McKenzie. >> Second. >> Second. Norby. And we'll start up in five minutes or so. All those in favor say I. I. Thank you. Thank you.