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8/20/2024 Minutes Study Session OFFICAL PROCEEDINGS MINUTES OF CITY COUNCIL STUDY SESSION (BUDGET) August 20, 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 August 20, 2024. Notice of the meeting was given in The Grand Island Independent on August 14, 2024. Mayor Roger G. Steele called the meeting to order at 6:00 PM. The following City Council members were present: Bethany Guzinski, Chuck Haase, Jack Sheard, Mike Paulick, Mark Stelk, Mitchell Nickerson and Jason Conley. Maggie Mendoza, Michelle Fitzke and Doug Lanfear were absent. The following City Officials were present: City Clerk Jill Granere, Assistant City Administrator/Finance Director Patrick Brown, Finance Director Matthew Gleason, City Attorney Kari Fisk and Public Works Director Keith Kurz. ITEMS FOR DISCUSSION 4.a) FY2025 Parks & Recreation Budget Proposal Parks and Recreation Director Todd McCoy reported personnel services would increase by 6.4% ($3,588,148) and was not requesting an FTE. Operating expenses would increase by 3.6% ($1,358,509). Recently Completed Projects mentioned: • George & Ryder Park Restrooms • Ryder Park Parking Lot • Pirnie Playground • Stolley Irrigation System • Sterling Park Backstop • Ryder Picnic Shelters • George Park Field Renovation • Lincoln and Grace Abbott Park Playgrounds • Stolley Park Roads and Parking Phase I Improvements Capital Projects mentioned: • Ashley Park Backstop & Drainage Improvement: $295,000 • Buechler Park Tennis Court Resurfacing: $30,000 • Eagle Scout Trail Renovation: $900,000 • Cemetery Asphalt Road & Parking Improvements: $100,000 • Cemetery Columbarium: $22,000 • George Park Playground Replacement: $150,000 • Island Oasis Renovation: $2,000,000 • Parks and Recreation Master Plan: $70,000 • Skate Park Renovation: $900,000 • Parking Lot Improvements: Lincoln& Sucks Park: $150,000 • Stolley Park Roads & Parking Upgrade Phase II: $750,000 • Shelters: Grace Abbott& Lincoln Park: $70,000 Page 2 of 6,City Council Study Session,August 20,2024 • Ryder Baseball Field Improvement: $1,000,000 • Stolley Train Area Improvement: $2,250,000 • Trail Development West Connector: $75,000 • Park Projects Contingency: $100,000 Capital Equipment carried over from previous FY: • Parks Bucket Left Truck(on order): $155,669 Capital Equipment for consideration: • Parks Used Air Compressor: $14,000 • Parks Lift Gate Lifts x2: $10,000 • Parks Bobcat Mower/Snowblower: $57,866 • Parks 11' Mower#1: $93,728 • Parks 11' Mower#2: $93,728 • Cemetery Track Loader(Bobcat buyback): $9,000 Discussed was Park Projects FY2024-2025 Funding Sources. Mentioned was the Parks and Recreation Master Plan initial public engagement summary: • Public Open House had 115 visitors • Online Participation was 1,909 • Stakeholder Meetings held 11 interviews Discussion was held on survey responses. Recreation recommendations were: • Non-athletic programs for youth and adults • Programs for active adults and seniors • Consider childcare services • Teen programming • Secure indoor aquatic venture • Multi-generational community center Mentioned was the next review meeting would be held the end of September and the findings would be presented in December. Derek Hansen spoke in regard to hiring of more Parks personnel to help with maintenance and preparations for league games and tournaments. 4.b) FY2025 Jack Rabbit Run Golf- Landscapes Budget Proposal JackRabbit Run Golf Course Manager Sadonna Manfull mentioned comments made by the customers and their experiences. Discussion was held on 2025 key strategies for the golf course, year over year comparison and FY2025 Budget Summary. Mentioned were FY2025 Proposed Equipment & Improvements: • Pick-up Truck with Snow Blade-State Bid if not leasing Page 3 of 6,City Council Study Session,August 20,2024 • Spin Grinder(carry over from FY24) • Groundsmaster 4000-D Mower-Purchase using Sourcewell if not leasing • Maintenance Building Ceiling Repair: $30,000 • Possible carryover of$10,000 for snack bar improvement • Continue Tree Removal/Planting (Multi-Year Project): $45,000 • Project to renovate lake on hole#4 (carry over from FY24): $130,000 • Concrete pad, repair of multiple cart paths on course: $18,000 • Range ball dispenser: $17,000 • Mats for driving range: $19,000 Mentioned were FY2025 —Items on the Radar: • Landscapes Gold Management Contract 12/13/2025 • Airport Lease Renewal 4/30/2026 Clubhouse, Cart Bar, Deck: • Going on 50 years old • Hooking to City sewer and water (septic system 48 years old, life expectancy is 15-40 years) • Storage • Consistently turning away business • Cart barn protection of the carts. • Quality simulators to generate revenue year round On-Course: • Age and condition of irrigation system (original system is 48 years old, inside rough installed 39 years ago, outside rough & driving range is 31 years old) • Reconfigure holes 10-12 (need to get off landfill which would eliminate maintenance issues) 4.c) FY2025 Heartland Public Shooting Park Budget Proposal Neil Davies and Tom Busch reported the economic impact of the 4'H Shooting Sports Event in June 2024. Busch reported there were 2,100-3,500 attendees with total business sales for City of Grand Island was $2,294,740 which included lodging, transportation, food, retail, recreation, space rental, and business services. In the last 12 months the HPSP had 47,100 visitors. 2023 City Park Budget: • Total Revenues: $377,477 • Total Expenses & Capital: $701,129 • Total Cashflow Loss 2023: $339,652 Hornady operating the park saves the city approximately $340,00 per year. Mentioned was the maintenance services in the contract stating: Major repairs to facilities and real estate shall be a capital expenditure that is agreed upon by both parties. Mentioned were the total losses from 2018-2023 were $1,679,202. Page 4 of 6,City Council Study Session,August 20,2024 Mentioned were goals to enhance the previously neglected aesthetics as well as the function of the park: • Trap/Skeet Controllers—Water damaged • Trap/Skeet Houses —Vast potential but must be enhanced and maintained to meet customer demand. 12 doors need repaired and 15 doors need replaced. • Weathered and deteriorated structures Capital project request totals: $195,983.55. Mentioned was the park residential house and state of condition: • Water intrusion (mold, no gutters, water build-up around foundation, low spots, allows water into the basement, porch settling and separating from foundation) • AC Unit(worn out and not properly mounted) • Siding Damage (weathered and deteriorating) • Interior Updates (flooring, lighting structures, wall repairs) Capital Project Request totals: $100,000. Mentioned was Bay Ara Expansion: (to meet current demand): • Accommodate 4-H growth • Increases capabilities for multi-gun matches Project Request total: $50,000 Total Capital Project Request Grant Total: $345,983.55. Discussion was held on future programs they would like to get to come to the Shooting Park. 4.d) FY2025 City Financials Presentation Assistant City Administrator/CFO Patrick Brown presented an overview of FY2025 City Financials: General Fund: FY2024 Revenues: For fiscal year 2024 the revenues were projected to be $1,273,272 higher than budgeted revenues. While Sales Tax revenues would fall slightly short of budgeted revenues, it would exceed previous year Sales Tax Revenues by approximately 2%. Building permits and other revenues were attributable to higher revenues. FY2024 Expenses: For fiscal year 2023, vacancy savings were projected at$2,435,217 of which the Public Safety departments make up almost all of the vacancy savings. Health Insurance would be budgeted too high in FY2023 for some departments so that would be adjusted in FY2024. Ending Cash for the General Fund was projected to end at$38,421,872 which was $21,275 higher than beginning General Fund Cash. Per the City's fiscal policy, cash reserves should be at 30% of Total Appropriations which was $12,918,243. The difference in ending cash and fiscal policy reserve was excess cash and could be spent on one-time purchases. The amount available for one-time purchases is $24,503,629. FY2025 Revenues: Property tax revenues would remain the same as they were in FY2024 at$12,086,673. Sales Tax revenues were projected at a 1.5% growth over forecasted sales tax revenue for FY2024. Sales Page 5 of 6,City Council Study Session,August 20,2024 tax revenues were projected to be $18,210,966. Overall, the General Fund revenue projection was $53,606,230, a slight increase over FY24. FY2025 Expenses: Personnel expenses was budgeted for a 3% increase to $41,046,181 from $39,826,942. This included the FTE's brought forward in budget presentations to City Council. The recommended FTE's were two sworn officers, Plumbing/Mechanical inspector, Fire Captain, and moving a part-time Admin Assistant to full-time for Community Development. Operating expenses was budgeted for a 29%reduction. The reduction was due to the Camp Augustine/Fire Station#3 funds budgeted in FY24. Operating expenses were budgeted at $9,890,559. Overall, the FY 2024 budget was within$42,490 of the City's fiscal policy of budgeting Revenues equaling Expenses. The final budget would vary slightly from now to adoption but would be in line with fiscal policies. Cash Position: General Fund projected ending fund balance for FY24 was $42,386,149. Cash reserves (Fiscal Policy states between 20 and 30%)was projected at $13,390,064 (25%) with the remaining balance of$28,996,086 available for one-time projects. These remaining funds could be used for the following: • Fire Station#3 rebuild(in progress) - $5,393,721 • Ladder Truck- $2,340,000 • Ambulance - $409,000 • Police Vehicle Storage & Training Facility- $1,900,000 These one-time expenditures total to $10,042,721. The remaining balance was still in excess of cash reserves, but it's recommended to keep those funds until property and sales tax discussions at the State level become relatively stable. Casino Tax: For FY24, Casino Tax projected revenues were $830,000 which is 10.7%higher than budgeted revenues of$750,000. With the Hotel/Casino opening in February of 2025, projected revenues for FY25 were $1,200,000. These funds are currently part of the General Fund and used for general governmental services. Food& Beverage Occupation Tax: Food and Beverage Occupation Tax revenue projection for FY24 was $3,229,907 which was 4.8%higher than FY24 budgeted revenue. Projected FY24 expenditures were $4,221,420. Year to year expenditures out of Food & Beverage Tax included. • Husker Harvest Days - $200,000 • Lottery Match (10% due to State Fair being held in Grand Island) - $575,000 • Grow Grand Island - $500,000 • Vet's Complex Debt Payment- $574,166 (debt will be retired in October 2027) • Other Expenditures of$1,000 • The remaining funds are used for Parks Projects (on average $1,285,834 annually) Page 6 of 6,City Council Study Session,August 20,2024 For FY25, budgeted revenues were $3,336,000 which was 7.6%higher than FY24 budgeted revenues. In addition to the above expenditures, $3,548,085 would be available for projects due to spending down excess cash reserves in the Food & Beverage Occupation Tax Fund. KENO Fund: Projected FY24 funds from KENO proceeds was $326,000 with projected FY24 expenditures of $718,265. For FY25, budgeted revenues were $340,000 with budgeted expenditures of$954,000 (due to spending down cash reserves). ADJOURN The meeting was adjourned at 9:04 p.m. ,G�-f Gr�•�.�,-e_ Ji Granere City Clerk