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7/16/2024 Minutes OFFICAL PROCEEDINGS MINUTES OF CITY COUNCIL STUDY SESSION (BUDGET) July 16, 2024 CALL TO ORDER Pursuant to due call and notice thereof, a Study Session (Budget) of the City Council of the City of Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First Street, on July 16, 2024. Notice of the meeting was given in The Grand Island Independent on July 10, 2024. Mayor Roger G. Steele called the meeting to order at 6:00 PM. The following City Council members were present: Maggie Mendoza, Bethany Guzinski, Chuck Haase, Jack Sheard, Mike Paulick, Michelle Fitzke, Mark Stelk, Mitchell Nickerson, Doug Lanfear. Jason Conley was absent. The following City Officials were present: City Administrator McAloon, Deputy City Clerk Sonya Cisneros, Assistant City Administrator/Finance Director Patrick Brown, Finance Director Matthew Gleason, City Attorney Kari Fisk. INTRODUCTION 4.a) Assistant City Administrator/CFO Brown provided an introduction to the General Fund Overview. He reported that FY24 General Fund Budget was $56,688,379 and projected FY24 Actuals are $54,560,254 in a savings of $2,128,125. Funds were budgeted for Fire Station #3 (cash reserves) but were not spent and those funds would be coming from a debt issuance if Council approves in the near future. Vacancy savings were not calculated into the FY24 Projected expenditures. Estimated vacancy savings for FY24 was $800,000 based on 2% vacancy rate. Discussed were possible future use of vacancy savings. FY25 General Fund reflects a balanced budget proposed from Administration. • Budgeted FY25 Revenues were $53,792,230 or 1.1% increase over FY24. • Budgeted FY25 Expenses were $53,792,230 or 3.4% increase over FY24. This increase was in line with the current inflation rates. There were 15 FTE requests for FY25: • Police Department requested 7 police officers, 1 police sergeant, 1 police lieutenant • Library requested 2 Library Assistant I's • Community Development requested 1 plumbing/mechanical inspector, moving an administrative assistant from part time to full time,part time accounting tech • Parks requested 1 full time maintenance worker • Fire &Ambulance requested 1 Fire Captain. After internal discussions with Department Directors Administration is recommending 5 additional FTE's based on projected available revenues as follows: • 2 police officers • Plumbing/mechanical inspector • Moving part time Admin Asst for Building Inspection to full time • Fire Captain ITEMS FOR DISCUSSION Page 2 of 4,City Council Study Session,July 16,2024 5.a) FY2025 Mayor, City Council, Administration, Legal, City Hall and Clerk Budget Presentation Assistant City Administrator/CFO Brown reported that the Administration budget total operating expenses would increase 9.4% or $20,000 increase contract services for Strategic Planning Consultant. Personnel expenses would increase 14.5%, splitting the legal secretary 50% with the legal department. This included step increases and 3$ COLA for Non-Union employees. The Mayor and City Council personnel expenses would have a 0% increase. Travel, training and other expenditures were recommended to stay at $10,000 to provide for participation in League of NE Municipalities and National League of Cities. The Legal department budget would have an operating expense increase of 32% or $21,000 due to increases in Dues and Subscriptions (software licensing) and Travel & Training (staff of 1 to staff of 3). Personnel expenses would decrease by 0.7% by moving 50% of Legal Secretary compensation to Administration. The City Clerk's budget personnel expenses would decrease by 11.1% or $30,000 due to retirement of clerk and staff being at lower pay steps. Operating Expenses increased by 235.3% or $89,600 due to the election costs for the Special Election. An increase in travel and training and office supplies of$1,000 and $3,000. City Hall's budget personnel expenses increase by 4.4% or $6,200 due to step increase and COLA. Operating Expenses would increase of 4.5% or $10,800 due to increased costs in City Hall maintenance and upkeep. 5.b)Human Resource Budget Presentation Human Resources Director Schmid reported the personnel services would increase 4.84% due to overtime and step increases. Operating expenses would increase 32.18% due to consulting services due to four array studies in 2025 for Non-union, AFSCME, FOP, IBEW WWTP. Increase contract services due to increased cost of EAP.No capital projects or equipment. 5.c)Finance Department Budget Presentation Finance Director Gleason reported personnel services would increase 2.98% which is lower than expected due to reorganization and retirements. Operating expenses would increase by 3.00%. 5.d) Information Technology Budget Presentation Finance Director Gleason reported personnel services would increase 6.32%, which would include the reclassification of Systems Tech to a Enterprise and Systems Administrator and a GIS Coordinator to GIS Administrator which was approved by Council on June 11th. Operating Expenses would increase 0.88%. IT Manager Stephanie Gosda spoke about cyber security upgrades to our firewalls and hardware. She explained how taking this to another level and upgrading our switches to an even more secure switch. 5.e) Community Development Budget Presentation Page 3 of 4,City Council Study Session,July 16,2024 Community Development Director Chad Nabity reported that the Regional Planning personnel services would increase 7.32%. This included one FTE for an Administrative Assistant. Building Services have been paying 10% of the salary and benefits for the Planning Admin. With the increase of the Building Admin. the funds are shifted back to that position. Operating Expenses would increase by 0.62%. He reported there would be no Capital Projects or Capital Equipment. Assistant City Administrator/CFO Patrick Brown spoke about software upgrade and what will be accessible for the county to view. The Building Services personnel services would increase by 18.95%. This included an increase in FTE's for Plumbing/Mechanical Inspector and Administrative Assistant. Operating expenses would increase by 35.93% due to dues and subscriptions, contract services and computer services. There would be a Capital Equipment purchase of a new inspection vehicle in an amount of$30,000 and an I-Plan Electronic Plan Review Table in an amount of$11,000. Chief Building official Ed Klimek spoke about fee adjustments and how they fix themselves by the estimated value of the project. When the cost of construction goes up the minimum fee goes up. Chief Building official Ed Kliment spoke on what they are looking for in a mechanical inspector. The CDBG would have a personnel service increase of 10.81%. Operating expenses would increase by 0%. There would be no Capital Projects or Capital Equipment. 5.0 CRA Budget Presentation Community Development Director Nabity reported the CRA was requesting property tax revenues of$791,079. CRA Budget Highlights were as follows: • Façade Improvement of$450,000 • Conestoga Marketplace of$200,000 (payment two of twenty payments) • Husker Harvest Days of$200,000 (seventh payment of ten) • Other projects of$150,000 • Fire/Life Safety of$200,000 ($100,000 CRA and $100,000 City) • Land Purchase of$100,000 CRA Carry Over Projects: • Hedde Building Life Safety Grant($105,000) • Façade Project Elks Building($100,000) • Fire Life Safety Office Net($100,000) • Fire Life Safety Tower 217 ($35,000) • Fire Life Safety left to allocate ($65,000) • 4th Street BID Streetscape Plan ($20,000) Mentioned were projects paid since last budget included: • Conestoga Marketplace Grow Grand Island($500,000) • Conestoga Marketplace ARPA($1,487,506.12) • Facade OfficeNET ($100,000) • Façade 106 North Locust($100,000) • Façade Long Johns Silvers ($100,000) anticipated Page 4 of 4,City Council Study Session,July 16,2024 • Facade Prairie Pride ($96,370) anticipated • Hedde Building Life/Safety partial($160,000) anticipated • Life Safety Artisan's Alley ($35,000) Also mentioned were TIF projects Final Payments: • Token Properties Carey Street(2024) • Wenn Housing Project(2024) • Poplar Street Water Line (2024) • Casey's Five Points (December 2024) • Baker Development(2025) • Mainstay Suites (2025) ADJOURN The meeting was adjourned at 7:32p.m. Sonya neros Deputy City Clerk