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City Council Regular Meeting Minutes August 27, 2024 Page 2 1 Motion carried 4-0. 2 3 VII.PUBLIC HEARING - NONE. 4 5 VIII.REPORTS FROM COMMISSION AND STAFF - NONE. 6 7 IX.GENERAL BUSINESS OF COUNCIL. 8 A.9 2025 Proposed Budget & Levy Presentation. 10 11 Finance Director Deborah Maloney reviewed on June 11, 2025, a revised Street Improvement 12 schedule was presented for the City Council’s consideration of 2025 improvements that included 13 street reconstruction and limited mill and overlay improvements and staff presented the future 14 Street Improvement Plan that reflected extensive mill and overlay project for 2024 and 2025 and 15 the resulting impact on the 2025 debt service levy. At the June 25, 2024, City Council Work 16 Session, the City Council and Staff reviewed the updated Street Improvement schedule and its 17 impact on the 2025 Debt Levy. The Debt Levy provides funding for 2025 debt service payments 18 for the Road Improvement debt, Lease Revenue debt (City Buildings), and the Tax Abatement 19 debt (parks and sidewalks). The proposed 2025 Debt Levy will be part of the requested approval 20 of the Preliminary Levy for 2025 at the September 10 City Council Meeting. 21 22 At the July 9 Work Session, Staff provided the City Council with an early projection regarding 23 the overall levy and General Fund Budget based on known cost increases and inflationary 24 assumptions. Staff continued to analyze actual costs with new information provided by vendors, 25 contractual service providers, and labor negotiation developments and presented an updated 26 overall levy scenario and a detailed 2025 General Fund Redevelopment Authority (HRA), 27 Capital Equipment, Building, Parks and Infrastructure Improvement Funds levies. The Levy 28 proposed below reflects these work session discussions. Council directed Staff to incorporate the 29 items discussed into the 2025 Budget and Levy. Council affirmed the adjustments to the various 30 capital levies that are consistent with the long-term capital plans. No increase in the HRA levy 31 was proposed for 2025. The Levy proposed reflects the culmination of Council meetings/work 32 session discussions to date. 33 34 The proposed 2025 overall levy is $9,601,511 which represents an increase of $410,378 or a 35 4.46% increase compared to the 2024 overall levy. 36 37 Ms. Maloney reviewed the 2025 Budget Calendar in detail along with the 2025 Budget Process. 38 She noted the Cost of Services ($10,290,080) less Operational Revenues ($3,824,450) leaves a 39 funding gap ($6,465,630) which equals the levy need ($6,465,630). Replacement Costs 40 ($350,000 - $1,000,000) less City Generated Revenues ($2,65,500) leaves a funding Gap which 41 equals levy amount ($573,700). Debt Payments ($3,257,030) less Debt Reduction Resources 42 ($694,849) leaves a Funding Gap which equals the Levy Amount ($2,562,181). The Total Levy 43 Amount is $9,601,511. A graph showing the Overall Levy by Fund Type was provided. 44 6