Well that's what I got.

Whoever you pick probably double the other two handle the top three looking back from then we had one metal house.

Yeah, yeah.

Oh absolutely.

Absolutely.

Say we're there.

Absolutely.

That works out.

Actually, that's a good thing.

Oh my gosh, one maybe I'll never do it.

Okay.

I can't say that we are okay.

Server is not necessarily sick.

Yeah.

West side of the app.

Is that the same as this?

No, that's yeah.

Whatever.

I don't think that's I would change it.

Yeah, absolutely.

So then I'd have to decide whether it was.

Yeah.

Yeah.

Sometimes we talk about that.

No questions.

No questions.

Well, let's see if it's just sometimes a lot of things.

She was, actually.

It's hard to take that step.

Probably there are actually what one and I point it running on the Sunday or Saturday.

Saturday, right?

Actually, Saturday or something.

Well, thank you very much.

Good evening, everyone.

Welcome to the Eloy City Council budget session.

Tonight is Monday, May 18th, 2026.

The time is 5 p.m.

Madam Clerk.

May I get a roll call, please?

Councilmember Lajoska?

Here.

Councilmember Curtis.

Here.

Vice Minister Rango.

Here.

Councilmember Schneider.

Here.

Councilmember Garcia.

Present.

Councilmember Galindo.

Here.

Mayor Sutton.

Here.

Thank you.

Can we all please rise for the Pledge of Allegiance led by Councilmember Snyder?

Thank you very much.

We have no one scheduled appearances, I take it.

All right.

Well, that will bring us right to all discussion items.

And I'll stop present to Mr.

Bryan right.

Thank you, Mr.

Mayor.

Uh members of the council.

I'll sit over here.

Don't mean to make your next go one way or the other.

So no, tonight uh I'm gonna present uh the council, the uh FY2627 budget.

Kind of the format of tonight is um I'll go over the the budget overview of it, kind of then you know, talking about uh the budget, the expenses within some of the funds, some of the major stuff.

Um touching on the revenues.

Uh we've already went over the revenues um at a previous meeting, but I'll touch on some of that those um and then we'll talk about the personnel um highlights, the personnel changes that we have, and then from that point we'll jump into by fund.

We will go through I gave counsel on the at your dias um a uh little summary sheet, and what this will do is help follow.

We'll we'll we'll start with the streets fund and work down all the special revenues into the capital projects and to the enterprise funds, and then last we will go into the general fund.

Um so at any time that there's a question, what I'll end up doing is I'll go through and and uh address the fund what the uh overall budget is, you know, and then talk about the what the changes and then talk about the major changes over five thousand dollars and um address any of the descriptions with it, and at that point I'll ask council is there any questions?

If I don't hear any, I'll go to the next fund with it.

If you have any questions, I can address those at the time.

Um and then at the very end, I'll just give a brief overview of again over the capital projects.

Not much has changed since we uh presented capital projects.

We did add a couple um and I can address those at the time um with the with the council.

But um that's kind of the format of tonight.

But if if we nobody has any questions, we'll get started.

Uh we'll just go over the budget um the highlight.

You know, this this year's budget, the FY2627 budget, it's a it's 105 million six hundred and twelve dollars 105 million six hundred and twelve thousand five hundred and forty dollars.

This is actually a ten million dollar reduction over last year's uh budget, which was around a hundred and fifteen million.

The reason the primary reason for that reduction is the you'll see in the general fund the transfers out that we're doing uh the uh from the general fund.

The general fund is down about twelve million, and that's because we transferred so many funds out of our reserves into water and wastewater for capital projects.

Those have been completed, so that's the main reason the pretty much the primary reason for this reduction in between last year's budget and this year's.

But the general fund still is a major one of the major one uh funds.

It accounts for about uh twelve around twenty-six percent of our overall budget.

The largest funds are our really our special revenue funds and capital projects funds.

Um those are around the special revenue funds are about 33 percent of the budget, and uh capital projects funds are about 20 28 percent.

Enterprise funds still make up about 12 percent of our overall budget.

And last but not least, the lonely perpetual care fund.

That's barely you know 2% of the overall budget at uh 23,000.

But overall, this is a very fiscally sound budget.

Uh expenses match revenues, you know, instead of revenues matching expenses.

So we we've built in contingencies within this budget in funds that need the um oversight to it, and namely like the general fund, and we'll talk about that.

But all these funds have their appropriate fund balances if we want to call it like the reserves built into the budgets.

That way, if something comes up within those funds, we have the budget capacity to uh make any of those necessary purchases.

But just going on to page 10.

Uh, this page just showed some grass.

Going on to page 10, the revenue outlook.

Um, like what we talked about earlier in the revenue presentation and uh in March, is that you know, overall the revenues are up within the general fund slightly.

Um city sales tax is um uh up about 300, a little over 300,000.

But the main things this year, and I'll get a little more into the general fund.

The main things within the enterprise funds, uh, we have our water wastewater increases scheduled for November 1st.

That uh is the second of five that uh we have adopted, and also effective July 1st is the 4.8 percent for uh sanitation, that is the uh annual increase from waste management, and and that is programmed within this budget.

So just kind of going through.

We I'm just gonna kind of roll through and talk.

We're gonna go ahead and jump into well.

I'm gonna jump into kind of the city sales taxes briefly.

Our city sales tax, yes, we are seeing a little increase.

A lot of it is gonna be in the construction manufacturing side of things.

Um, retail sales tax is really stagnant, you know, but still growing up about one, one and a half percent.

We just don't have any new retail sales coming in industry, so most of it is you know online, and you know, with some of the manufacturing that we have going on, we get some of that tax on it.

But overall, it it is going up.

Um we look at um, I'm gonna just go into the primary property tax.

What we talked about, primary property tax rate is going up, you know, slightly, it's going up to 9848 from 9769.

Very nominal.

We are anticipating bringing forward a council, the maximum uh collection amount that we can do, and so that uh even with the slight increase, it's it should be very nominal, probably less than a dollar to the uh home that is valued at 100,000.

Uh state shared revenue.

We talked a lot about this state share to revenue uh that we get in.

We will see decreases this year, namely from Santan Valley Incorporation.

Um, we did receive um we're kind of being cautious on this because there's still the uncertainty at the state when it comes to how the state's um tax code will be will they mirror the federal.

They haven't come to decision on that within the budget.

So when the the league put out the estimates to us, we decided we're gonna be cautious, we're gonna be conservative and just take the same budget amount as what we did last year.

That is they're coming in roughly let's say four million dollars that they're gonna they're gonna give us through state the state income tax, but without their adoption of their budget and knowing which way the legislator or the governor's proposal will be on that, we decided let's know what we're gonna do.

We know we're gonna get 3.6 million, we know that is a conservative, but it's a good number.

If they adopt whatever model, we will still be good.

We wouldn't have to come back going, okay.

They took a lower amount, we've got to figure out because we took a more aggressive approach on it.

So the 3.6 million uh that we have in there, we will be above that probably throughout the fiscal year, but we just don't know what the final number is, and normally the league doesn't give us that until almost end of June of the first part of July.

So we balanced our budget, everything based upon the these uh state shared numbers.

I'm gonna just briefly talk about we're gonna get in a lot of general fund expenditures when we get into the departments, but overall the general fund is at 28 million, just over 28.1 million.

This is actually a decrease of about 12.3 million.

A lot of that, like I mentioned, that's just the reduction of other transfers out to water and wastewater for the capital projects for that we were completing this year.

So we're we're not having to annualize those back into the the budget.

So that's why you'll see a decrease in the general fund.

Um overall, and we'll we'll talk about this when we get to the contingency, but the general fund does have a contingency of about 2.7 million.

That way, if there is an unforeseen circumstance that happens, we do have the budget capacity to say we're gonna make the cuts here without cutting any programs or services in there.

Uh lastly, just talking about fund balance.

Um, you know, we're gonna use about 5.4 million of the general fund balance.

It's roughly, you know, using that, we still will have a healthy about probably close to about 18, 19 million dollars after the fact with that.

But the out of that 5.4 million, 2 million is gonna be looked at just for that contingency in the reserve.

3.1 million would actually go to the uh wastewater department to complete the last phases of the odor control and the belt press installation, those are in with the 80s Q for design, they've got to go through work through that, and then the construction will happen to finish that off.

And then the last bit the 3.5, 350,000 to the water fund.

That's just in case there's a retainage left over from any of the projects that we're completing right now that might just roll over, but we anticipate that to all be done, but that's just a placeholder in case there was something rolling over from those projects.

So next I'm gonna kind of talk about, and this is kind of throughout the whole budget, the employee compensation and benefits.

Um, you'll see in this budget throughout all the funds that have salary and benefits, um, a general increase, a cost of living, if you want to call it.

Each of those will have that.

You'll see that, but our we're looking at um all the this budget having a four percent general increase for all uh employees affected July 1st, along with the market adjustment for those positions identified through the cop and class study.

Those have been identified programmed into the budget.

There's also that one percent that we that uh we addressed with council saying if we continue to do the uh the Christmas um incentive, we have that program for in the budget as well.

When we look at uh employees benefits this year, uh we've we have about a four point a little over 4.8% increase, like about 5% increase in health insurance.

So that's programmed in uh to this budget.

Arizona state retirements go going down from about 12 to 11.97, so three tenths of a percent on it.

So those are some of the major things with the benefits.

But when we go through everyone's individual budget, if you see salaries or benefits going up, those are the cost drivers within that increase from the general increase, or the health insurance going up on it.

Some of the key cost drivers into this budget.

We look at is what we talked about is a 4% wage increase.

Um including benefits, that's around 430,000.

Uh the market base, which we talked about, that would be about 204,000, including benefits.

Um minimum wage is programmed at 1515 going up.

Uh staffing changes.

We did add two positions.

We added a public works inspector that will be allocated throughout the um streets, water, wastewater, and a portion of the general fund with the benefits.

That's about 107,000.

And then a police dispatch position.

The chief is met with uh Chief Weddle and the fire department has agreed to up their allocation to cover another position.

So we programmed in that position, you know, within the budget.

So that would give that's probably including salary and benefits around 89,000.

Um there's uh throughout the budget, there's um uh one-time cash payouts there um for retirements that's about about 91,000, and then we talked about the retirement contributions going down, and then we uh public safety retirement, that's uh will remain about 12 percent of the city's contribution.

So overall, it you know, we've looked at all the positions.

Um you know, staff uh submitted their like their requests, but these these two are the ones that we felt were the public works inspector was really uh needed with a lot of our projects and uh spreading thin the current person doing it.

So McKinsey felt this was a very important position.

Uh other positions were evaluated, and we're kind of looking at that this year and seeing what we could afford going next year and where they fall in place with job functions and stuff of that nature.

Um the next several slides.

I'm just gonna go through their kind of some grass with it.

Um the next one, the enterprise funds.

Uh we talked about the the rate adjustments.

You know, that's built in.

You'll see that within the inner the expense side of it, and along with the sanitation fund of going up 4.8%.

So I'll address the water fund and all those, get in more detail as we go on with the those funds.

Um I'll talk about the special revenue funds a little more.

That way we don't kind of drag on with that.

But right now, I'll just go to page 25, which is a capital projects, just to talk about it.

You know, this the CIP budget that we have, we have about 42 capital projects that equal about 37 million.

Uh 37.1 million.

These projects, majority of this is the water and wastewater.

These are the um we're gonna issue that 22 million dollar utility obligation bond.

That's gonna cover numerous important projects for water and wastewater.

Um, it also will finish up the um the current belt press that's in here.

Uh we have about nine million in streets.

That the majority of this, you have about a million for the street preservation, but you also have the uh Sunland Gin uh Erica Road improvements out there, and so that will be a can probably about a year and a half, two-year project, you know, once they start it, but that's programmed in here for us to uh do the work.

The airport is about 2.7 million, and like I said, with the airport, when we look at it, it all depends.

They may come through and say, hey, the uh the runway, the paving is going to be postponed, but we had to plan for because it's on the current five year.

They adjust that five-year master plan of the airport a lot.

So some of it may happen, some of it may not, but it's at the recommendations of the state or the federal government on when they release that funding on it.

So we can go into a little more capital project if council has that uh towards the end of the presentation.

Um I'm not gonna go ahead and talk about personal highlights.

We already did that, but these next several pages for council, if you go through, it just gives a more uh description of breakdown of where they are, the projects or the the funding for departments, um, how it looks at throughout everything.

So, unless council has any questions on the personnel stuff, I'll just start moving on to the the funds if if there's any uh desire to talk about the the personnel stuff.

Okay, I'm gonna go ahead and if you want to follow.

I'm gonna go the column that says revised budget book changes on the form I give you.

That's gonna match the presentation on your screen.

If you have your budget book, it would be the second column because that was the pages in the budget book, just to let council know, depending on which one you're looking at.

So we're just gonna go ahead and go to the streets fund.

That's on page 70.

Uh, the streets fund, their budget looking at is five eight million five hundred and eighty-four thousand five hundred dollars.

This is about a four point one million dollar increase.

It how is this made up?

Personnel went up by 59,000.

Uh you have your benefits increasing by 20,000.

Repair and maintenance of equipment and vehicles are increasing by 45.

This is due to like a lot of the cost of parts and equipment going up.

Um, due to the aging fleet with streets.

You have an increase in the streets, uh capital streets by 16,200.

This one is our portion of the sidewalk, the tagular road, the the the funding on that.

So if it gets paid this year, it won't happen next year, but we need a the budget authority line item for that, and then an increase in operating maintenance by 395,000.

This is increase the cost of supplies, street light maintenance, and also budgeting for a contingency of the streets.

One of the things that with the streets fund that we still, if you want to say a red flag that we're still waiting on, we don't know what Pennell County is going to be doing with the our current half cent sales tax.

So we put in a contingency for that.

That way the street preservation or any operations won't be affected by that.

So that's why we built in a little bit of a conjug uh a contingency in into this budget for that.

Um then also you'll see capital three and a half million.

This is for the Sunland Gin Arcadia Road Project.

That's the city's portion of the um to complete the project from that grant.

And lastly, you'll see street operations going up by 147,000.

This is mainly due to uh road striping and and culvert improvements throughout the city.

Is there any questions with the streets budget?

Okay, okay, hearing none, we'll go to streets one time.

The streets one time, is that better for the audience?

Um the streets one-time fund, that is about 1.9 million.

This is about 162,000 increase over last fiscal year.

The main changes in this within the streets operation budget of there's an increase of 796,450.

This is just, and you'll see this too at the budget where it says change in the fund balance.

The we have to account for the fund balance.

So if we come up with a project for like this fund that is not identified, if we only budget for what we're getting in revenue and not the fund balance, we couldn't do it.

So that's where if you see comments or I say it's just the change in the fund balance, it's just accounting for what's in the fund balance plus the annual revenue to equal that.

So that's what that is on that portion that makes up the 1.9 million.

But capital went down in this one by 300 or 633,000 because we purchased the the paver and uh a loader uh this last year.

Any questions with the streets one time?

There's really nothing identified at this time, but this is a good fund for if something happened, that Pennell County half cent sales tax, and we needed a half a million to complete something.

This this streets one time doesn't have anything identified that we can use money on for roads.

Okay, and hearing none.

The next one is the LTAF.

The LTAF is the uh the budget's uh 11,860.

Really no significant changes identified within this budget.

It's just this is for transportation purposes that we got funds many years ago, and so if we end up having a traff uh transportation study, we're like, hey, we need about an $11,000 match, we have it right here.

We wouldn't have to be looking for anything on it.

Any questions with the LTAF budget?

Just real quick to the growth in that funder is just from interest.

Correct.

The next one is the economic and community development fund.

This one again uh for the audience, this is uh our food for home based consumption tax.

This is where that's in there.

Um this year, where there's really nothing.

Uh this budget's two million six hundred and ten thousand four hundred and ninety.

It's an increase of 188,110 dollars.

There's nothing really identified out of this as far as a major, but there are some rollover projects that were plant that were added this year that we're rolling over into next year.

Some of those are finishing with the general plan update.

Those were identified as CIP projects.

And this year, we didn't get them completed, so we're rolling them over.

After that, that there's nothing been identified on that.

But if we have any anything related to community development or economic development, we could utilize this fund for community-based projects or uses.

Any questions with uh this budget?

Okay, hearing none.

Yes.

How much does that grow each year?

Um how much does it grow each year?

Yeah.

Uh if we don't spend it, yeah.

We get around about 450,000 from the two percent, and then plus the interest that that's allocated to it.

So maybe about 450,000, you know, annually, depending on on what it is, but it's been pretty consistent around the 400 to 425,000 annually.

The next special revenue fund is the police impound fund.

This one is geared, only can be used for police expenditures.

That budget is about 13,490.

It's an it's an increase over last year about 790, 7,990.

There's nothing identified, but if there is, it's only can be used for public safety expenses and uses.

Any questions with the police impound fee?

Okay, the next one is the public safety equipment fund.

Um, this budget is 11,265, an increase of 5,265 over the prior year.

Um, as noted in here, nothing's been identified, but again, if it does, it only can be used for public safety purposes.

Any questions with the police impound fee or the police equipment safety fee fund?

Okay, the next one, the grants fund.

The grants fund's overall budget is $14,690, $14,690,000.

It's an increase of about $1.8 million.

Um, some of the significant changes.

We do have three personnel grants out of here, they're grant-related, the Git them, HIDA, and SRO.

So you'll that's why there's personnel increases and and benefits there.

But within the grants of about $1.7 million, that's just giving us, you know, it's covering the the Sunland Gen Erica, the grant that we have in there.

That's that $4.8 million.

We have the airport grants out of here.

We have our CDBG grants.

We also budget, you know, for all the uh governor of highway safety grants that the police get, but we also have enough budget capacity.

If we do get a grant that in for three million dollars, we have the budget capacity and budget levels to take on this grant at any time.

I kind of budget high within this fund just in case because you never know if we get lucky and we get to spend money this year on it.

So that's what the this grant is.

And actually, as we move as the Sunland Gin starts to spend, this grant will get next year, will hopefully be below because we're we're moving forward on that grant for the road Sunland Gen.

Any questions with the grant fund?

Just real real quick.

Um, personnel and the benefits.

How many people do you have that uh are part of that grant?

Uh there's a total of three.

Yeah, the police department has one in Githam, one in HIDA, and one as an SRO.

So they have them currently they're all filled.

Actually, currently there are two code, which is the SRO.

We have the GitHub tech orderly field and we have the replacement.

So any other questions with the grant fund?

Okay.

The next one is the JCF fund on page 97.

Uh this budget is $67,680, increase of $9,480 over last year.

Uh there's really nothing identified.

These expenses here have to be related to court related purposes.

So if they they want to do get their air conditioning replaced, we can use this fund for it.

They need new computers, they can look at it here, but it has to be court related.

It can't be for salary and benefits, but it can be used for contractual work or anything of that nature.

One of the things I think you'll probably see come before you from the judge, probably utilizing this fund or the uh court recovery, the next one, would be you know, they need to enhance their security.

You know, they can buy a cameras out of there, they can use it out of these funds out of it.

So you might see that coming up here in the near future on it.

Is it so I understand that we share uh services?

And they use the office.

Uh yeah, so Mr.

Mayor, Councilman Glindo.

The court we do share the court, the judge's salary, it's split between us and Florence, but that's out of the magistrate court's budget.

You know, when it comes to that.

Uh we actually pay for all the salary, but we receive in revenue a about eighty thousand dollars a year from uh Florence.

This fund here is just only for our building and our uses, not for another municipality.

So thank you.

The next one is the court recovery, uh, another court related expense.

Their budget's about 192,130.

Uh this is an increase about 33,335.

Uh this is a change in the fund balance and uh to reconciling the the contributions through the year that we receive in court recovery expenses, and these are from fines and stuff that we get, but it's dedicated to this fund.

Any questions with the court recovery?

Okay, the next one.

Um, in your budget book when when I was previous given out, I it was in our budget, but I forgot to uh to attach it, so that's why there's a kind of a change in the the page numbers on it.

But this is the opioid settlement fund.

This is the city receives funds from the opioid settlement, so we are establishing the budget.

We're doing about $500,000 on that.

So this is gonna be any time that we've already seen the police department come before you with the AEDs.

Uh so that will be spent out of this fund, and the revenues from the settlement would come in to this fund for it.

So it will always be a wash on the expense side of things, but this is just establishing a budget for for that, and we're putting a $500,000 budget on that.

Overall, I think at the I think our settlement amount right now is a little over 2.1 million 2.3 million.

So we're not recognizing it at all.

We're just saying a 500,000 at this time until we start getting more and uh into the appropriate expenses on it.

So it has to be related to the opioid, you know, opioid use and and stuff then and the police department along with the city attorney and city manager identify if these meet it, then they they move forward with the expenses.

Brian, do we have a limit as to how long we can we have to spend this funds, or are these funds gonna stay there until we these funds will be coming in for the next 20 years?

I mean, so these funds will probably be coming in longer than our our lifetime up here.

So it's Paul Paul and Chando may still be here when it's happening, but I think we all may be gone.

So and Brian, so these are like uh cash reimbursements, right?

We do we spend the money and then they reimburse us for it.

Yeah, we we spend it, then it's just we send it in that hey, it gets approved, we spend it, and then they they ship us the money, so it's a okay on it.

They don't give us the money, then we spend it on that.

Any questions with uh the opioid settlement fund?

Okay, the next one is the economic incentive fund.

This is that five million dollars that council adopted by resolution for just development purposes.

The five million there, we nothing's been identified, nothing's been spent.

So the only way this will be spent is uh it will come before council with any uses for that money to be spent out of there.

So at this time, nothing's been identified budgetarily for any funds to be spent out of there.

What up to the interest on that money?

This one with it coming over, we'll be allocating that this year on it.

And most likely what I I'll end up doing is uh with either Western Alliance or a bank just setting up its own savings account on it and letting it just fluctuate on that, you know, for purposes, it's easy tracking and stuff of that nature instead of being commingled with the overall checking or PFM accounts that we have on it.

Uh the next one, the Smart and Safety Fund.

The Smart and Safety Fund.

This is a uh again another this is the marijuana money, if you if you want to tie it back to, but it only can be spent on public safety expenses.

That budget's about 230,425.

This is an increase about 35,115 over last fiscal year.

Um, nothing's identified, they go through and they may come up with some expenses throughout the year that they might need related to police uh operations, and they can get it out of this fund as well.

Any questions with the uh smart and safety fund?

Okay, here none.

We will go to the next one.

This is the water allotment fund.

This fund here is um with uh LINMART, they they have a an agreement that was signed, and this is set up just for that water allocation on it.

Um if this fund is can't that agreement is canceled at any time, the fund is set up so it's not in intertwined with the water fund expenses.

So if it's canceled, we have the fund already set up to reimburse the the developer that paid into it.

But that but this budget's about 130,000 um increase about 45,000 over last year.

Um, but nothing's been identified but the current member on this um is Linmark on that agreement.

And this was set up five years ago uh with Harvey Krauss, the city manager, it was brought before council on that um agreement.

Brian, you said the fish canceled, the money gets reimbursed to uh Linmark.

Yeah, McKinsey can uh yes it is uh council member Snyder.

So essentially what this is is almost like a holding account for them to keep their allocation of water with the city, and so they're paying uh on their associated CAGRD fees with the property.

And so this was an agreement that was negotiated back when Harvey was here, and that was one of the commitments to the project is that it is only going to um be allocated to the city if they actively develop it.

So if they decide to pull out and they transfer those rights, whoever the new owner is can either decide if they want to continue to pay in to the city to hold those like a thousand acre feet a year of water allocation, or they can say nope, we're out of it, we don't want it anymore, and then they get all their money back.

Do we as a city pay for that allocation today?

We do not because it's not developed, but if they activate it, then it would trigger that based on the size of their development.

Is there any further questions with the water allotment fund?

Okay, the next one we'll go into is the cemetery fund.

Um I always say it it's a it's a dead fund, but um, that's my joke for the night.

Bad dad joke, bad dad joke.

Um this budget is two hundred and thirty-seven thousand four hundred and sixty-five dollars.

It's a decrease of a hundred and seventy-six thousand seven oh five.

The reason why is we completed some capital projects within this fund.

Um for example, personnel decrease, and this is normally just the reallocation of you know how positions are allocated and stuff.

There is one full-time position strictly out there uh from recreation use uh that they have out there.

It's a cinto out there, so we do have an employee out there uh full-time.

You also have a decrease in contractual services of 17,000.

This is due to the completion of the planning of some vegetation, desert vegetation and some trees out there that were done this year, and then also a decrease in capital of 150 because in this year budget we purchased a backhoe, so that's why the decreases so between the vegetation and the the capital of the backhoe, that's why you'll see the decrease of 176,000.

Is there any questions with the overall in the cemetery budget?

Okay.

The next one is the airport budget that's on uh page 126.

Uh this budget is 1,064,725.

It's an increase of about 656,000 over last fiscal year.

The main reasons the two made is the capital airport capital 150,000.

That is pretty much primarily due to uh contracting workout for updating the airport policies, guidelines, you know, and trying while updating the the new leases and attendance.

So we're going through and the update those.

We're gonna get the 10, all the leases, the leases are all out of date, so we need to get new leases.

Christina's been working on that uh, you know, on top of her jobs over at public works.

So that should be coming here probably within the next three to six months, you know, to counsel for all new airport leases.

Um, and then it will also help with the you know, updating our policies at the airport.

Those will all probably be done, get all contracted out, get them done, you know, up to today's standards on it.

So, you know, budgetarily um that is one of the projects within the CIP for the airport fund that that's in it.

The other one, the increase in capital of 506, that's pretty much primarily due to uh providing efficient funding to cities portion of the grants while establishing you know anything unforeseen.

That's with the the fund balance on it.

Don't know if you get a major storm and knocks out something, we need the uh those expenses to cover that.

We have that capacity within the airport fund on it.

So um any questions with the airport fund at just over a million dollars.

Okay, hearing none.

Then the last one in the special revenues are perpetual care.

Uh the perpetual care budget's 23,835.

This is a decrease of last year of 5400.

Uh this decrease just is reflect because of the what's coming over from the uh cemetery fund of the from the plot sales.

So overall, the the perpetual care is one that is driven by the 10% of plot sales and interest on that on a yearly basis.

So we're gonna jump into I call it the capital projects fund.

We have a fund called capital projects, but the capital project funds, you know, within our our audited financial statements, these funds are the ones that identified as capital projects.

So we'll talk about the capital projects fund itself, impact fees, and then uh utility obligation bond.

Um, so within our CIP, it starts on page 136 under the capital projects.

This budget is around 3.2 million.

These projects are um we've went over those in our CIP, but these are the ones that are driven by the police department, community services, general administration, community development, um, public works administration projects for those general administration capital projects.

Um why water, wastewater, they are funded out of their own funds because of enterprise purposes, and so is streets out of streets.

So this capital projects fund is just for general, I call it general administration purposes.

But uh we've identified uh those um those departments you'll within that.

Um but primarily you'll see like the where I said the public safety, that's that's print uh primarily going down 79,000, and that's the completion of some of the police vehicles from one year to the prior.

Uh the increase in we say streets, um, that's for the renovation of the senior center.

That's kind of um I mentioned to council earlier.

That's just a title that within the program, it should just be under capital, but it labeled as streets.

We're gonna be fixing that and moving it under the the correct title uh for that, but but for right now, we have to work with clear gov to get that done.

Um streets or just normal capital is increasing by twelve thousand eight hundred, and a lot of this is current in rollover projects with it, and then uh we end up having with that also gives us some flexibility within this where it says capital of some unspent fund balance within there.

So if we have a major capital project that popped up, like we got a grant through the parks and rec for a playground, and we're like, hey, we can take that, we can budget out of the unforeseen that would come before council before we can spend it.

So we do have budget capacity within this fund for any capital projects that might come up, but that aren't budgeted on here.

We have um we can go over that in the CIP if we want to, but uh this is where all those projects are for the general fund the general administration.

The the next one, Mr.

Mayor, is the next uh five, these are impact fees.

Impact fees can only be spent for new development, cannot be spent.

These expenses cannot be spent for uh maintenance and operation.

If we spend it, it has to be you know, like for parks, you know, we can maybe spend it on something that growth has pushed us into for growth purposes, um, a splash pad, uh uh a park.

If we go out to bond for a park and help pay for the debt on a park, you know, through those impact fees.

So each of these, if it's the police, the police, the streets, all these next ones are related to growth purposes.

But on page 144, what says the parks uh impact fee?

That budget's one point one million one hundred and ninety-eight thousand five hundred dollars.

It's an increase of about a hundred and eighty-nine thousand six hundred dollars.

The this primary changes uh is due to the fund balance change, but nothing has been identified.

If we do bring a project before to use these funds, it would come before council for spending on it.

What's the last thing in this fund?

I'm sorry.

When's the last we've used anything from this fund?

Um this last year, right now, through this year, we used about $15,000 of it, and that was to help cover due to a growth in a park, you know, in the for the shade covering that we were allowed to use it for for a portion of our our expenses on it.

We did that.

Um other than that, um, we really have to be careful in looking at the uh guidelines of what's in our CIP that's growth related versus just repair and replacement.

So we haven't had a lot of uh growth aspects to that be we can use for the parks uh impact fee on this one yet.

Could it be used for a new park?

It could be used for a new park if uh if it's we're the demands there from uh you know the the public for it for that space, yes.

And a lot of times they they use this.

You go out and do a bond and it's a million dollars, and you're you're getting a lot of impact fees from the built home building.

You can help they use the the impact fees to help pay the debt payment on that.

Um other questions of the park impact fee.

The next one, the police impact fee fund.

Their budget is one million one hundred and twelve thousand five eighty-five.

This is an increase about 7272,185.

Nothing's been identified, but again, it has to be um for police related purposes.

The last time time to go off of uh your question earlier was when we built the police station, we used uh about a little over half a million dollars towards into the police station on that.

The next one is the uh water impact fee fund.

This fund we really don't we don't have a water impact fee right now, those move to capacity fees, but this is just the budget that's still remaining.

We will be utilizing this budget this year.

Probably if it's not spent, it will be spent next year.

Uh but the impact fees here, this budget's 378,380.

So when we actually do some of these improving lines, like out in certain areas, those are you know, oversizing a line, extending lines.

That's when impact fees can be used for.

So this will be used up probably within the next you know, year and a half on some of our projects that we're doing with uh water impact fee.

Uh the next one, the wastewater.

There's no budget, that's why I still have to identify it.

That decreased by 437,100.

We use the funds this year when we did the oversizing coming out of the main from the plant.

We use uh we we used up our impact fees on that.

So that was an appropriate use of project on that.

And the last uh impact fee is the streets impact fee, streets impact fee is uh their budget's one million what 212,000 twenty-five dollars.

This is an increase about 158, uh 158,465 dollars.

Nothing really identified.

Um, we will be identifying when like a a use that we've identified, depends if it's uh finished this year or not, is the um road along outside on the side of uh ropes and ranch that we're improving.

That's an appropriate use of those funds because that's a growth of that road, you know, due to the that development.

Or if we have a new road that we need to expand, we have a development come in, and we want to do the other half of the road due to the growth.

We can we impact fees can be used there too.

But at that, and then the last one is the utility obligation bond.

This budget is 22 million.

Uh what we talked about.

Um, this is between operating maintenance, that's just the category, you know, that you might have some designs go into or uh bond fees or anything like that.

That's kind of into this total, so it's just how it's categorized within the budget.

But overall, this is a 22 million dollar um up to the 22 million dollars for the water wastewater improvements.

What we're gonna do.

Is there any questions with the utility obligation fund?

Okay, we will jump into the enterprise funds.

These have a lot more detail, but uh it starts on page 172.

Uh, the overall budget here is 4 million 732,550.

This is a decrease of 3,733,460.

Um, some of the you'll see the increases in personnel.

That's due to the market adjustments, the general increases, adjustments and benefits.

You'll see grounds and repairs going increasing or decreasing by 10,000.

And this is due just shifting funds within the budget, you know, based upon historical spending.

So that's the direction on the $10,000 reduction for the water system operations increasing by $58,800.

This increase is due just to the cost of maintaining the water system boosters and wells.

Additionally, costs are rising, you know, with chlorine chemicals, piping, and other uh costs to maintain the system.

So uh that's the justification on the $58,000.

The decrease in operating maintenance by 204,005, that is primarily due to a reduction in the contingency line, because this last year in this year's budget, we had a we had about one point, let's say two million in this fund because that was there for paying off the two water two loans from the water department that we did.

So with the establishing the new contingency for this budget, which is a little over 600,000, that reduces that contingency line.

That's what the reduction is in this budget, is due to the fluctuation in the contingency fund.

This fund does because of the utility obligation bond.

We do have that.

I get we put it in contingency.

Contractual services increase is 73,000.

This is due to uh retirement of employee moving and moving the salary and benefits to the contractual for the ESI contract.

Uh you'll see the same line item increase in the wastewater fund as we move forward.

And then lastly, also within that fund, we established a $25,000 engineering consulting line.

Um, you know, because that way, if we need the water wastewater, have any services that need engineering expenses or contracts, they have a line item for engineering involved with it.

The last two on this within this fund is uh capital is decreasing by three million four hundred and ninety-five thousand.

This is this decreases because we completed those those projects within the water wastewater that were identified in the budget.

Well, three, um, pump station two, the houser water line project, uh, the nitrate facility, you know, those are the things that have been completed with it.

So that's what the main reason for that decrease.

And then lastly, it says debt service, a decrease of 210.

That's due to the paying off of those loans.

That's why the it's it's it's been reduced.

Next year's budget, you know, in the 2728, you'll probably see that go up because we're gonna recognize the new bond payment.

So you'll see where the contingency that dropped, but the bond the debt service go up.

Is there any questions with the water fund itself?

Okay, the the next one, Mr.

Mayor, is the wastewater fund that starts on page 180.

Uh, this overall budget is 5,219,000 and 250 dollars.

This has a decrease of 9,794,185.

Um starting off, personnel benefits are going up 23,000, and then benefits, you know, six thousand.

Uh water operations is going up 28,000.

And this is due just to the higher cost to maintain the water system mains and and system repairs, uh additional cost for their piping and chemicals that they have at the the operation of the treatment plant.

Um rating maintenance is decreasing by 849,000.

The reason for this is just like in the water fund, we had a to pay off the bonds.

The the two WIFA loans that we had on there, we had that to in the as a line item as a contingency as a placeholder when we paid them off.

So that's being reduced down for because of the payments we don't need anymore for paying off the bonds, but this fund still maintains uh over a $650,000 contingency line item budget for the bond payments for next year on it.

Uh we identify it there on within this budget.

It's a one, it's a contingency as a placeholder for next year's bonds.

So that's where that's pretty much the reduction in the operating maintenance on that line item.

Um, and then additionally going down under contractual services, that's going up 68,000.

That's going up uh like I mentioned the water for the retirement of employee and the salary and benefits moving to the ESI on it.

And then last the next couple travel and training going up 5,000, doing the cost of seminars and trainings for the employees within the water and wastewater department, and then lastly, a decrease in capital of uh 8,555,000.

It's just the completion majority of this is the completion of the sewer gravity main from the plant, and then uh the belt a little bit of the belt press, but the rest of the belt press will be constructed this year on it.

So, you know, it as you notice the 11 miles open, you know.

So saw that uh so you know that that's a great indication that you know that that project is been completed on it.

So and then debt service going down by five five hundred and twenty-four thousand three sixty, and this is uh when we paid off the two with the WIFA loans this this year.

So that makes up that nine million dollar reduction in the budget in the wastewater fund.

Is there any questions with the sewer fund?

Going on to the uh next one, which is the sanitation fund.

Sanitation funds budget this next year is three million forty-nine thousand five hundred and seventy dollars.

This is a decrease of six hundred and seventy-four thousand one hundred and ninety-five dollars.

Um personnel is going up nineteen cost of uh the general increase in market, uh the benefits are going up sixteen repair and maintenance of for equipment and vehicles is going up 30,000.

And this is just cost of parts and supplies to remain the the sanitations fleet.

Um a lot of the heavy equipment if it does break down, costs a little more than the average normal vehicle, so the costs are going up on that.

The sanitation services going down by 526 uh 250 dollars.

This right here is recognizing that when we when we went with waste management, um our commercial and roll-off accounts we thought would probably come in a little higher than what it did.

The commercial and roll-off accounts do not have to come over to city billing like residential, so a lot of commercial and sanit uh roll off went with the other companies out there, so we don't collect it, we don't bill it.

So this is recognizing the normal budgetary expenses for um annualizing it on uh what we're doing right now on commercial and roll-off and residential billing.

Brian, I have a question just uh that commercial went away to maybe some like uh Arizona City sanitation, and they use our landfill, so we're getting some of those back, maybe by a landfill fees, even though we've lost it on the commercial site.

Um council member or Mr.

Mayor, Council Member Snyder, if they went to Arizona San City Sanitation, we might get some of it back, but a lot of them went with RAD, stayed with RAD.

They kind of would undercut those rates that what was ours.

So I think majority of them stayed with RAD on it.

Um the next one, the operating maintenance uh line item went up 80,265.

This is primarily establishing a contingency fund within the sanitation uh for any unbudgeted expenses that are out there.

So that went up about 80,000, and then lastly, a decrease in capital at 300.

Uh this is uh lowering it.

This is we still have one capital project that we're still doing, uh finishing up, which is the landfill rate and fee study.

That should be within the next several months, and then we'll be brought before council in a work session and and discuss, but that's the major the 150,000 left that you see in the budget is is for that.

Is there any questions with the uh sanitation fund?

Mr.

Mayor, at this time before we get in the general fund, do you want to take a five-minute break or do you just want to jump into the general fund itself?

Okay.

Um you'll see on your handout, it will still follow the same order on it.

Um we're gonna get into the general fund departments, and then we'll get into the community services, the public safety, then the public works uh departments within it.

But the economic development, this is on page 290 or 207.

Uh this is uh this budget is 283,380.

This is a decrease of 70,610 dollars.

The reason why is we moved an employee from the city, the economic development and management analyst from the this department into the city manager's budget.

So we recognize that uh shift in personnel expenses.

Any questions with the uh economic development?

Okay.

The next one is city council.

Any questions?

No.

Um this budget, yeah.

This budget's 350 352,500.

It's an increase of 31,700.

Uh the the changes in this one, uh, additional 8500 is due to uh funding of the league city events for like swag handouts and also with operational supplies that have it are in this increase with it.

And then the 30 23,200.

Uh this is primarily due to an increase in the community programs uh category of 8,000 and then an increase in the partnerships category about 15,000.

Um here within this next week.

Um, I'll be making all the necessary copies for council for the the community program one and to disseminate so council can review those, and then we'll set up meetings for uh council to discuss those.

Any question with the city council?

The next one is human resources budget.

Their budget is 545,360.

Uh, this is an increase of 91,810.

You'll see a decrease in personnel and in benefits.

This is uh due to move an employee half a year under the ESI on that.

So you'll see under contractual services when we get to that, you'll see an increase in that, and that's due to the salary portion of that ESI contract.

But um, under operating and maintenance, that's increasing 580.

Uh this is due to a little higher renewals of software subscription and additional funds for citywide testing.

Um mentioned it just a moment ago, an increase of contractual services of 130,000.

Is this due to moving uh expenses over to the uh for the under the ESI contract?

Any questions with the HR human resources budget?

Okay, hearing none city clerk's budget.

The city's clerk's budget is six hundred and fifty-five thousand seven hundred dollars.

This is an increase of one hundred and eighty-eight thousand six ninety.

Uh the biggest the biggest change besides just the normal general increases is moving an employee from the city manager's budget to the city clerk's budget is the management analyst position.

So it went from one budget to the other.

Um, under this one, that's what the you'll the significant changes in personnel and benefits are.

Um, the operating maintenance, an increase of 66,400.

That's due to uh a new annual support fee for E1.

Once we do the upgrades to the council chambers, um that will probably start.

It will actually be after the first meeting in uh July when the council voted to not have the second meeting, kind of go on a summer break.

We're gonna get that project initiated during that dead period.

But with ES with E1, their annual maintenance for a year was about $27,000 for a maintenance contract, and we felt the first year, let's get that.

That way, if there's anything going on, it's a 24-hour customer support, all this that we felt it was worth it to add it into the budget for that year.

So that was the main um reason for that increase within this budget, along with some increases in the city clerk's annual support fees for subscriptions, um, and then uh the general the risk retention pool is uh told us our rates are going about 15 percent and city's clerk budget carries majority of the uh general liability, so that's what the increase on that is Brian.

The elections things uh we have the general plan coming on the uh budget.

Anything the city does their expenditures is that going the clerk's uh budget is generate or where does that end up?

Mayor comes from Snyder so if it's anything with the general plan that's gonna come out of the that community the food the fund 19 where we're right now paying all the general plan expenses on it for anything to deal with that that the city clerk has to come up with expenses for the general plan and then also the other one is on our election is the AP um yeah APS they fund they fund that any questions with the city clerk's budget okay the next one is the uh magistrate court magistrate courts budget is six hundred and seventy five thousand five thirty this is actually a decrease of five thousand one hundred and twenty dollars uh this right here um personnel went up you know based upon the general increase the benefits went down that's just recognizing the current benefits within it uh when if they last year I believe they had a vacancy on it so when we do a lot of vacancies throughout any budget we budget for like family uh you know the highest level if they come in at employee only we adjusted down so you would see that savings so it's just recognize the savings within that budget on their benefits and then operating maintenance that decreased by 14,500 um the reason that decreases that's just the annual historical what we're paying right now and the the fees to the for the custody of prisoners so we reduced it based upon current uh spending patterns and then talking the judge of what what he looks at coming forward and so we reduced it to that that level and then there's an increase in utilities uh to the court facility and that's for electrical and other utility uses any quote any question with the magistrate court budget okay the next one city's manager's budget so if you have a lot of questions please do them right now um the city manager's budget is six hundred and seventy seven thousand three hundred and twenty uh you'll see this is an increase of 11160 uh as mentioned moving over a position from the economic development um also contractual services are going up 40,000 and this is due to like increasing of legal outside to cover legal expenses you know related to any development things or any water issues that we may have come up so we we're looking at that for those types of expenses any questions with the city manager's budget the next one finance any questions no um I tried it didn't work chief so that's right have to learn from you on that one um the finance budget is one million two hundred and forty four thousand eight oh five uh you'll see a decrease in personnel of 17700 and the reason for this decrease is during this year's budget um it was noted of a one-time payout for some salaries or some from PTO from a possible retirement it didn't happen so that came out of it which prompted the um reduction in salaries the operating maintenance went up by twelve thousand six hundred that change is due to higher software subscription renewals supplies and materials um you'll see that probably throughout a lot of the department's budgets just to make note is software subscriptions that's a new way that a lot of the computer programs and everything that the city uses from police to finance to city clerk they they are just increasing these software subscriptions annually by three to five percent just that's their new way of doing it so it seems like uh so you'll see a lot of these software subscription renewals going up in everyone's budget um contractual services are going up 52300 uh the primary reason is the annual um audit contract IT services and other contractual services that are administrated by my department so um on that and then lastly um that's the last one to make note on on the finance department's budget is there any questions with the the finance department okay hearing none the next one is legal uh legal's budget's 214845 there's no change no no to change within this department's budget uh

So on that, and then lastly, um that's the last one to make note on the finance department's budget.

Is there any questions with the the finance department?

Okay, hearing none.

The next one is legal uh legals budgets 214,845.

There's no change, no to change within this department's budget to be noted.

The next one is the community development.

Community developments budget is two million seven hundred and three thousand six hundred and twenty dollars.

This is an increase of four four hundred and sixty thousand three seventy.

Uh, you'll see increases of salary and benefits due to the the changes within our our COLA and general increase in benefits.

The biggest one is a change in contractual service of 375,500, and that changes due to contractual services for outside plan review and commercial inspections for commercial projects.

So if we collect the money for outside plan review, we have to we'll spend it.

So if we don't get it, we don't spend it.

So if there's a a lot of this is a built-in factor.

Uh, if we get it, we have the budget authority and the well the knowledge or the the payment method to have that this budget for it.

So um, and then lastly, you know, that's that's pretty much the the major change within the community services or community developments budget.

Any questions with that department?

The last one is it's a department, but this is our contingency debt transfer.

This is where we we have our debt payments, we have our unfunded liability payments, contingencies, transfers out.

So this I call it fund department, you know, with it is uh this budget is set nine million seven hundred and eighty-three thousand four hundred and fifty.

Um the increase in it says operating maintenance one million two hundred and eighty-six thousand seven hundred and fifty-five.

This establishes that about an increase in our contingency.

This is increasing our contingency to 2.7 million.

This it's an increase there of about 1.3 million over this year's budget in our contingency.

Um in addition to the contingency fund, we've established a line item about 200,000 for improvements to the veterans park because we received a grant from APS.

If we have to spend a little more, it's like where do we get it?

We established a line in case we need to do any additional engineering with it, you know.

It's kind of an unknown at this point.

So we established a line item just for that.

Um we've established a line item for 50,000 for the 250th, 4th of July celebration.

So community services is planning, you know, doing things with that.

So there's a little more line on top of what he uh they normally do, they can expand some of that.

So they have funding to for that 250th.

Um, and then we also have uh you know our our normal unfunded um other contingencies of unfunded liability that we have in there, so you know, for insurance that we have.

Um, but also you'll see transfers to other funds decreasing by 15.5 million.

That decreases because we're not you we're not transferring out to water and wastewater anymore.

So our our transfers out have dropped tremendously on that.

And just kind of note to the public, Mr.

Mayor is uh when we do we don't support the enterprise funds for the operations.

These these are the funds that we decided on the transfer and out that the general fund was going to contribute for some infrastructure paying off debt for those funds, not for operational purposes but for one-time purposes, and that falls in line with our like fund balance uh policy that we have in place.

So that's pretty much what makes up the um this the contingency debt and transfer fund on it.

Um next one is the we're gonna jump into the community facilities budgets.

Um the first one is the community services administration, page 257.

This overall budget is 671,415.

Um you'll see personnel and benefits dropping.

Uh, this is due to um moving an employee to the ESI uh program, and that's where you're gonna see the contractual services as we get to it going up by 600 168,000.

So it's shifting the cost from one line item to the other uh for it.

Umperating maintenance is going up 5,865.

That's due to the supplies software subscriptions going up this next year, and then under contractual, like I just mentioned, that's just uh shifting it to the retirement of employee and moving their selling benefits to the ESI contract.

Any questions with the uh city administration?

Okay, hearing none.

The next one is park maintenance.

Parks maintenance budget is six hundred and eighty-seven thousand three hundred and sixty dollars.

This is an increase of 40,120.

Uh majority of this is personnel and benefit increases, but under the operation and maintenance, their budget's going up six thousand six hundred dollars, and that's just recognizing the cost increase for pool chemicals and supplies.

Any questions with park maintenance?

Okay, the next one is uh recreation programs.

Recreations programs this next year is 1,108,360.

They're recognizing salaries going up 42,000, benefits going up 24,000.

Under operating maintenance, it's 19,500.

And this increase is primarily due to additional programming for like 4th of July, Harvest Festival, Easter, giving them additional funds so they can do additional you know, increases there because their inflatables go up.

All these other things that they they do they provide to those festivities are going up, and that's recognizing those costs.

And then the next one is an increase to contractual services by $16,500.

And that's that's to expand programming for the community, like more classes, more activities, additional concert in the park for the community.

So uh expanding those those programming.

Any questions for uh on the recreation programs budget?

Is there any questions or other other salaries?

There's not a whole lot of money being spent there within the the community services.

I mean it's increasing the the contractual on it.

I mean, did you have a like question with Paul in it, or do you is it just a general comment or just general comment?

Okay.

The next one, library services or library department.

They're their budget's $308,000 eighty dollars.

This is an increase of $11,820.

Uh just the adjustments to personnel and benefits is the difference.

We get a lot of supplies through the Pennell County Library District still.

Um, one of the things that will be coming forth within this next fiscal year, it's not gonna have a direct impact on the library budget, but it's gonna be more within the finance budget.

Is uh the library Pennell County for years have always paid for and maintained the internet into the library and all the computers.

They've informed the city, they've been informing all the library district, like Florence, Maricopa, Coolidge, and they've informed us that they are going away from supporting those computers, paying for the internet, and so we have to maintain and take over those ownership of it.

When we do that, Pennell County is going to give us all the they're replacing all the computers, brand new, giving us brand new computers, but we will need to now maintain the services, maintain the firewalls, you know, because it's you got to be very strict on it, maintaining those.

And then also the internet.

Well, luckily, when we had fiber pulled to the buildings long ago, we did a drop into the library at that time.

So we don't have to figure out how to run fiber into that building because fiber is already run.

We just will need to buy a new switch.

So Cyberworks is looking at what switch we need to buy, working with Pennell County and say this is the switch you need for it.

So we have to buy some little bit of one-time capital for it, not much, but that takes our increase to computers.

We have about maybe 110 citywide, you know, laptops, desktops.

They have 33 alone within that within the library.

So they will be maintaining now another third of the computers that they currently have on it.

So that's something Pennell County has informed us.

So between community services, you know, what they would have to look at to the IT, they've been working on that, but it won't affect the library budget.

Um we'll have to look in probably three to five years of putting increasing computer costs to replace those computers at the library, you know, in the near future.

In the library in the teens section, they have the uh 3D printers.

Now, was Pennell County taking care of those or were we?

Um, Paul, if I on the 3D printers, that was done through a grant.

Is that through a warranty still?

So that the 3D is on that, but so they wouldn't maintain because that was through a grant that we got that.

So eventually we would end up needing to budget within the IT repair and maintenance, you know, replacement for those things on it.

So all those, you know, computers that Pennell County did, yeah, they it's like they're moving away, so that's just something the county's going now.

You guys maintain, but our property tax rates still not going down from them.

So Brian, those would become our assets then?

Yes.

Okay.

Yeah.

So Brian, um, even though the municipalities have a library within their city limits, they're still part of the Penell County public library, right?

They're considered Panell County Public Libraries.

Would that still continue or will they now just become property of the city?

Um, Mr.

Mayor, Councilman Glindo.

So when it with the library district that is out there, they buy a lot of they pretty much buy all the supplies, if I'm not mistaken.

They don't they don't pay for salaries, benefits, they just do the supplies, the um catalog.

They will still maintain the the catalog system.

We won't have to pay for that.

That is paid by Pennell County and through the the district itself, library district, the the money they get in from that.

So really we just we don't have to buy any curriculum, anything.

That's why you'll see in our budget, there's very little for like books and line items for that because it's all paid through the district on that, but it's still a city library.

Any questions with the library department?

It's budget.

Okay, the last one within community services uh is the facility maintenance.

Uh this budget is 562,560, an increase of 55,190.

You'll see an increase in personnel, you know, due to the general increase, um, slight increase for benefits, but repair and maintenance and equipment of vehicles is going up 20,000.

Uh this increase is due to kind of replacing this next year about 31 ozone-free bulbs associated with the four air scrubbers.

Um, if council remembers about four to five years ago, we got a grant from Pennell County to install air scrubbers within four buildings.

And so every about five years, you need to replace those bulbs, so you still it will still scrub in the air and and providing a fresher air on that.

So it's this building, community services, library, and the senior center.

So those public buildings have those this um air scrubber um system in it.

That's why we maintain such a very little sick in this building because no.

Um the other one is uh an increase in repair and maintenance for building and grounds for 15,000.

And this increase is due to funding a little more in the HVAC uh replacement program for the city buildings.

So that's the main is there any questions with the facility maintenance budget.

Okay, hearing none.

Um police department.

Any questions?

Still doesn't work, Chief.

I tried it for you.

Um police administration.

Police administration's budget is uh 2,197,985.

Personnel going up 131.

Uh primary reason is with the new position for the dispatcher, plus the general cost increases or any market adjustments.

Benefits are going up 17,000.

Account for the new position loss, also adjusting of benefits.

Uh, you'll see operating maintenance going up 66,000.

This is primarily due to uh um increase in software uh agreements, but you know, the cost drivers within this are pretty much the maintenance and licensing of our CAT RMS, you know, continue operation of target expansion within the flock.

Uh they'll explain the flock cameras out in the public um by eight to ten, I think it was in there.

Um but also uh another increase in this is Pennell County again informed the PD.

One of the systems that Pennell County used to pay, they're shifting the cost over to the city about 22 to 25,000 for another software subscription that they informed the police department on.

So that's also accounted for in the 66,000 increase.

Um the other one is contractual services are going up about 8500, and this is due to increasing costs uh that supports specialized services for compliance, operational support and professional services that they can't be performed in-house.

Um that includes like consulting training, mental health and support, uh wellness support.

And lastly, an increase of costs and to travel and training by 5,000 just due to the higher cost of travel and training and uh you know keep uh the you know training available for the police officers and support.

Any questions with uh police administration?

Just a comment about Pennell County being such a great point in this.

Um I have a question.

When we um had the presentation from about an animal kennel and stuff, it I mean I brought up the fact that what we're not addressing it is the issue with animal control in Eloy and in all the communities, and and that's to have a animal control officer, having somebody out on the streets that's that can serve the citizens.

I even suggested that we maybe uh develop a a small ad hoc committee that can look at the services that we could utilize through the Panel County Kennel kennel and and you know, using seeing if we can get an animal control officer, how we could work with uh animal control with Pinell County.

Um are we looking into that?

Is that something that maybe we can adjust this year?

Maybe that's something we can look in and bring into next year's budget.

But I think there's a lot of discussion that's going on.

We we know that it's something that the citizens of Eloy are truly uh making remarks that that it's definitely needed.

So I just would like to see us somehow go forward on this issue.

And uh Mr.

Mayor Councilman Gundo, I'll probably jump into that once it's in the we hit the animal control budget.

It might help answer your questions.

That's uh not this budget, but the next one.

Yeah, and Brian, I'm not gonna talk too much about it because Brian will get into it, but there have been multiple conversations that we've had.

Uh the chief and his captain staff just met with Penell County last week.

They've identified some potential solutions for us of how we can partner with them, and Brian will show, you know, we heard it loud and clear from council's direction that you guys want to see uh in-house animal control officers on staff.

So we do have some funding that's gonna be available not only for positions, but also looking at some of those capital improvements that might be associated with that, including vehicles, potentially upfitting some of the uh the old building over by the blue tank, uh things like that.

But Brian will get into that more as we go on to the next budget items.

Yeah.

So uh field operations budget's the next one.

The field operations budget is uh four million six hundred and fifty-two thousand five seventy.

Um this is an increase of four hundred and three thousand four eighty majority of it is all in salary and benefits, you know, with uh within the PD.

They do have operating maintenance going up, thirteen thousand.

And this is this one's just more accounting for your you know, cost of essential fuel supplies, ammunition, you know, kits, evident kits, and stuff of that nature.

So not a not a large, but all their increases in the salary and benefits portion of it.

And then uh any questions of the field administration.

And the next one, animal control.

Their budget's 300,000.

This is a hundred thousand dollar increase over last fiscal year.

Um it's all in contractual services right now, because when we adopt this, we're adopting it on a budget level or a department level.

The departments three hundred thousand.

Once this we increased it a hundred thousand dollars to account for um at least two positions, because each position probably with benefits is in between, it could be eighty to ninety thousand dollars, depending on benefits, um, the position.

So if we say two positions, that would be about a hundred and eighty to a hundred and ninety thousand dollars.

We have the budget capacity, it's not identified as personnel and benefits right now because until it is brought back before council, which will be next fiscal year, we have the budget capacity for the personnel to maintain even contractual services with Pennell County, because right now we pay Pennell County 7,000 a month average for the Kennels that what we do, and for on a monthly basis.

So you still have a budget capacity with that for personnel, but additional for the if council decides we're the method of we're starting it back up with personnel within the contingency fund that I mentioned the 2.7 million.

We put about the 500, 600,000.

So it could that's you that we have to have the startup cost.

You gotta buy vehicles, you gotta buy equipment, you gotta buy uniforms, equipment for the animal control.

You gotta have money to if we've got to um rehabilitate the existing facility.

We don't know what that is, but we do that's what the why the contingency fund is at the level it's at for those unknowns.

So once council decides the method and you know, it's brought forward.

We figured the 300,000 would be enough for just this year for the salaries itself, but any operational costs, you know, we would be having to utilize the contingency, all that would be brought before council.

We would know an estimated cost and it would be used out of the contingency fund on it.

And then two, if we had to um you also could have the community economic development fund that doesn't have anything planned because that's a community issue as well.

So we could use some funds out of there if if looking at it.

So um I hope that answers your question on uh with that.

But at this point, I'd give it up to uh look uh if there's any questions with this budget for for council um it'll okay.

Lastly, we will get into the public works.

There's we're we're three away.

if if looking at it so um i hope that answers your question on uh with that but at this point i'd give it up to uh look uh if there's any questions with this budget for for council um on it okay lastly we will get into the public works there's we're we're three away and you don't have to hear me speak anymore no um the next one is the GIS budget that's on page 305 um this budget is 67330 there's no major changes over 5000 you have to remember this fund vehicle maintenance public works administration these budgets here are allocated a portion of all their operations because they're allocated between all the funds the streets water sewer sanitation so you know just to let the the public know on that but uh this fund here 67320 dollars this next year no major um changes over 5000 to be noted hearing no questions um the fleet services this one we used to be called uh it's kind of been retitled it used to be called vehicle maintenance now it's uh they wanted it uh retitled to fleet services they want it to be coming up in the world I guess um that was actually cookies like I want fleet services okay sir I'll give you fleet services uh the the fleet services budget is three hundred and seven thousand one twenty five uh this is a change of twenty nine thousand nine twenty-five um majority of this that there's a increase of five fifty eight hundred for personnel benefits are going down five thousand that's just a change of the a person on how we budgeted and what they came in on benefits um repair and maintenance of equipment and vehicles is going up by 10,000 and this is due to the fleet shop uh equipment maintenance you know of the yearly inspections for like the post rack and uh replacement of like a tire changer you know more jacks more just more equipment within for them on supplies you'll see an increase of uh 17,525 for uh operating and maintenance and the and they're looking at getting a new tire alignment machine some shop supplies tools and service agreements uh for their necessary equipment so that's the major changes within uh that department on it Brian really quick does fleet maintenance also service the police vehicles yes uh the fleet maintenance is budget does all of parks all of police and any general administration uh community development vehicles within all the other funds you'll see their own operating light items for equipment repair but they also supply those but those funds are out of those for those vehicles are out of those funds this is just general government vehicles expenses and then the last one is public works administration uh their budget is 14420 an increase of 10280 over the prior year it's pretty much all out of personnel of 10800 uh you'll you will see utilities decreasing by 5000 that's just decreasing it based upon historical spending and in use on that so um that's our rule that's our last department um within the general fund to go over um uh we've gone over um all the departments all the funds uh major changes and addressed it by uh the fund the overall budget um just to give an council idea before I could just touch base on capital is the next the next step after tonight is June 8th I will um bring forth a resolution to the city council um based upon the the schedule A through G that we need we have to adopt by resolution that sets the the tentative budget that sex sets the maximum limit that we set our budget at from that point on we publicize this budget for two weeks after two weeks we will hold a special meeting on June 25th and at that time we'll hold a public hearing on the property tax public hearing on the the budget and then we adopt the final budget at that time so um that's kind of the next scheduled date um I do have the calendar um budget here just uh to show council that we have the adoption of the tenant budget on June 8th I publicize it for two weeks and that's by a state statute and then based upon the timing of it uh we hold a special council meeting on the June 25th and we usually do that like at five o'clock if council wishes to do it right at that time or 530 uh whatever council uh wishes to do it

Just uh to show council that we have the adoption of the tenant budget on June 8th.

I publicize it for two weeks, and that's by a state statute.

And then based upon the timing of it, uh we hold a special council meeting on the June 25th, and we usually do that like at 5 o'clock.

If council wishes to do it right at that time or 5:30, uh whatever council uh wishes to do it, it usually takes 10 to 15 minutes at the most.

We open up for a public hearing.

Um if anybody speaks on it, then we close it the final then we do it for the budget and then adopt the final budget that night.

And then we adopt the property tax levy on July 13th, which is a regular council meeting.

So that's kind of the next steps within this budget process that we have going on.

Yes, and we do that uh councilmember Schneider, is because by law we have to go back with so many dates between when we adopt the tentative, and since we don't have with it being on a Monday, the dates fall on that.

Yeah.

Yep.

So is there any questions with the overall budget that we just went through and and everything, and uh the next steps with it.

I mean, does council want me to go over a little bit over the CIP briefly, or is Council good kind of we we went over the CIP several times, but uh just the only changes that happened on the CIP since we've addressed it and brought forth is there's two projects we added to the five-year CIP, the animal um facility.

We added that to uh year five right now, and then we added um into this CIP is uh the permits and uh for Dan's a software application for upgrading their software for um community developments fee up, I guess you could say uh planning building application, yeah.

Just like permitting software, yeah, printing software.

Couldn't get that out of my mouth.

Um, those are the only things that change within the CIP since we presented it to council back in March, and what we addressed in uh um at the budget retreat in February, but I could bring it up if council wishes to look at it.

I think council looks satisfied.

And on behalf of council, thank you and you team for doing such a great job with this.

You guys did.

I I know this is a lot of work, and and the award you get are are really difficult to obtain.

And we thank you to break it down to a nice digestible form.

Thank you.

Well, thank you.

And I I'll I'll give uh the finance intern Abe Mays, you know, he's he's helped me out a lot on this.

Um our budget book in the clear govern this year, so he's been a tremendous help to me on this.

So hopefully it's been a good experience for him on it because a lot of cities are using these platforms now as like clear go.

So for his experience, I think it would have been a good one, but it really helped me out.

So I like to give him a shout out as well.

And to all the departments, you know, with their their help and getting things in on a town timely manner.

Even the city manager beat record, you know, pace of last year.

You know, that budget was submitted in a much more timely fashion by two days.

You mentioned uh community uh uh donations, whatever we're gonna have a special session.

When is that planned?

Is that a gonna be a uh work session, or is that be a part of a general meeting, or what's your plans on that?

Yeah, um this one uh council member signer.

So that's actually gonna be a separate meeting, it's not gonna be a public meeting.

You'll we'll have a separate meeting for all council members to go over the packets that we receive for the community outreach program.

Do you have a date on anything?

We don't yet.

I think Brian just got the applications last week, so then we're gonna schedule them this week sometime this week for you guys to plan for the coming weeks.

So it'll be in June.

Likely, yeah.

Is there a better date for some people than not?

I mean, because we're um we're just we'll probably end up sending that out.

I mean, is there something better a better week as people look in June than others?

Uh I had uh the 15th of June just it was with that third Monday just for a potential work session, and we haven't been having them, but that's you know that's a potential the 15th of June.

If it's too soon, I don't know.

But that's because we the 22nd is a general meeting, and so is the eighth, and so uh and unless you don't have it on Monday.

Can it be like uh prior to a council meeting kind of meeting or on the 22nd?

We can do it any time you guys want.

That's why we were gonna kind of send out an email to ask you all what your preference was.

If we want to address it right now and try to select a date on the dais, we can.

It's up to the wish of the council, really.

But I know some of you work, some of you guys have full-time jobs, so it's not as easy to just your own break, okay.

So tomorrow.

All right, there we go.

I vote for the 22nd prior to the council meeting.

We don't foresee this as a long meeting, right?

Okay, 20 second prior to council.

Yeah, I thought we were all gonna meet separately first about you mentioned we weren't it wasn't going to be a regular public meeting.

Yeah, you were just gonna meet with us in general separately, so to go over it.

Yeah, this this isn't gonna be a public meeting.

Right.

This this is a separate meeting that's gonna be just between the council members.

We'll have to have it posted, obviously, but it's gonna be behind closed doors so council can assess the community outreach applications that we received, and then it will be brought before another council meeting once those decisions are made.

Since Steve isn't here, I've asked a question.

Can we do it behind closed doors?

Is it is it qualify as one of those things we can do it without a public meeting?

Or do we have to break it up into like groups?

Groups?

We potentially might have to break it up into like three or four.

Like yeah.

Yep.

Um, I have a meeting on the 22nd till 4 30, but it's Zoom, so if we wanted to meet 445, five o'clock.

I'm I'm good, but um I have appointments up till 4 30 and Brian, will that give you enough time to make adjustments to the budget since we'll do the final vote on the 25th?

That's three days.

Um Mr.

Mayor, Councilman Grosse, we've already built into the budget what these allocations are.

So these are this won't have any impact on the budget.

Let's go by email and figure out that's what I was gonna suggest.

Why don't we go with the original idea of just sending out an email and then you can figure out the groups?

That works for us.

All right, if there's nothing else, department heads like to thank all of you two for all you guys did to bring this to fruition.

Anybody have anything they'd like to add or throw in here?

I see everybody nodding.

Yeah, okay.

You want to stay later?

Again, thank you.

Thank you guys for all your input.

Uh Brian, are you uh you done?

All right, with that.

Anybody else have anything?

Yeah, what go ahead, Dave?

Yeah.

Uh I didn't maybe I missed it, but uh something that was kind of in the background was uh the building we're gonna buy from HUD, which is uh across the police station.

Whatever happened with this, that's still in process, or we haven't budgeted in the budget any place that for that purchase.

Um Ryan, if you want if if uh that purchase would have been it would be in our capital projects fund, you know, that's still out there.

Okay, it's just HUD is gone through a lot of transformations, and they're with the housing authority, they've got to um work with HUD.

Um I know in talking with Dave, I saw him, and he gave me he was saying that within HUD, everybody that we worked with is gone.

projects fund you know that's still out there it's just HUD has gone through a lot of transformations and they're with the housing authority they've got to um work with HUD um I know in talking with Dave I saw him and he gave me he was saying that within HUD everybody that we worked with is gone so they they're having a hard time getting the w the process going again so that is in our CIP oh I didn't know it was there that's what I was asking if it within that fund the capital projects or even our contingency fund we have the capacity on any of those funds to pick that up if it ever happens yeah it would be with it would be within that fund itself all right everybody thank you all and have a good night hey Paul understanding that would have been like this I can give you this one.