Budget workshop centers on pay, policing staffing and infrastructure needs

City staff opened a budget workshop outlining revenue trends, one-time funding sources and multiple capital and ongoing personnel requests that council must weigh as it prepares next year's budget.

Staff said franchise revenues (electric, gas, cable, telephone) have trended downward and projected continuing declines of about 5% annually; property tax collections include an option to adopt a "no new revenue" rate and a voter-approval rate (staff quoted the voter-approval threshold as 3.5 percent) that together constrain how much new revenue can be raised without triggering a petition or election. Staff estimated the immediate new money available without triggering an election at roughly $102,000 ($30,000 from the no-new-revenue calculation and roughly $69,000 from the voter-approval threshold), and said new construction valuations could add about $30,000 under a no-new-revenue rate.

The Economic Development Corporation (EDC) wind-down was a recurring topic: staff said the half-cent EDC sales tax generates about $750,000 a year and that current obligations include roughly $2 million tied to the Votec center and other previously approved projects; those obligations constrain how EDC funds may be used going forward and require budget amendments aligned with the wind-down resolution.

One-time ARPA funds (American Rescue Plan Act) were highlighted as available for capital, one-time purchases or projects but not sustainable recurring personnel costs. Staff said ARPA has already funded items including police vehicles and pavilion repairs and that remaining ARPA balances would be reported back to council.

Public safety and staffing emerged as the most prominent discussion items. The Police Chief presented a package of requests including officer pay increases, officer proficiency pay, and equipment (portable/mobile radios and vehicles). The chief urged the council to address entry-level pay and retention, noting the department's difficulty competing with nearby agencies and private-sector opportunities. He proposed adding five patrol officers through a federal grant that would pay full salary Year 1, with the city paying 25% in Year 2, 50% in Year 3, 75% in Year 4 and 100% in Year 5 if council continued the positions; the chief said this staggered funding is intended to expand patrol capacity while limiting the city's immediate budget impact. The packet included quotes and cost scenarios for radios (Motorola and lower-cost options), vehicles and a proposal to remodel or add 1,400-1,500 square feet to address a property/evidence room shortage.

The Fire Chief described volunteer shortages and the operational challenge of meeting a 2-in/2-out safety requirement when only a small volunteer roster responds. The fire chief said mutual aid helps but that volunteer numbers are aging and that grants, a junior firefighter program and stronger recruitment (including social media outreach) are part of a proposed plan to bolster paid and volunteer staffing.

Other capital and maintenance requests discussed included: repairs and painting at City Hall and the Civic Center (to improve acoustics and finish work), replacing toilets and fixtures at the Ag Arena (estimate ~$21,000), security camera systems for the civic center and fire station, a used pad-foot steel roller (estimates $50,000$70,000) to improve road base compaction, lift-station repairs at a South 19th Street wastewater site, and vehicle reassignment to better match department operational needs.

Council members repeatedly raised the tension between hiring additional staff and funding pay increases to retain existing employees. Several members said they supported improving pay for entry-level positions to reduce turnover; others emphasized infrastructure and street maintenance needs and worried about increasing taxes for vulnerable residents. Staff recommended continuing discussions and returning to the next regular meeting with updated revenue projections, EDC budget amendments consistent with the wind-down resolution and more detailed cost estimates for prioritized capital items.

Staff said health insurance estimates were flat for the coming year and that cost-of-living adjustments (COLA) scenarios for all city employees were presented as a 3% ($115,000 estimated total cost) and a 5% ($191,000 estimated total) option; staff said any salary change affects fringe benefits and retirement contributions and would be reflected in final projections. Council directed staff to return with clearer revenue/expenditure projections and more detailed proposals for personnel and capital priorities at the next regular meeting.