River Heights budget workshop: staff advise conservatives on school rent, warn of stormwater needs and schedule truth-in-taxation hearings

River Heights council members and staff spent more than two hours April 30 working through the draft 2025–26 budget, adjusting several revenue and expense lines, confirming a schedule for public hearings and flagging stormwater and capital needs that could require short‑term borrowing.

Finance Director Dave Sanderson and staff briefed the council on key revenue assumptions and expense updates. Staff said a property manager reported a figure of $10,002.64 (the manager’s number was described as not fully documented), which the council’s finance team described as roughly equivalent to about $120,000 a year for the school building rental. Because details of that figure remain uncertain, the staff recommended a conservative revenue assumption of $25,000 in the draft budget so the city would not plan capital spending on money that might not arrive.

On personnel costs, staff said they had already built a 3% across‑the‑board pay increase into the draft; they also flagged that historical tracking of some payroll lines had been inaccurate and that health insurance and retirement contributions were higher than previously budgeted. City Recorder Sheila confirmed she will not invoice the city for volunteer work on Apple Days and staff recommended reallocating previously held line items for community events accordingly.

Budgeted election costs reflect the county agreement approved earlier in the meeting. Sanderson told the council the county’s per‑voter price sheet shows $2.17 per voter; the draft budget contains a $6,000 election appropriation meant to cover municipal election expenses in an election year. Staff noted the city pays the county after the election and that costs will be lower if there is no primary.

Stormwater and capital projects were the workshop’s most significant funding topics. Staff presented a stormwater repair that they estimate at roughly $60,000 to $65,000. The city’s stormwater fund balance stood at roughly $35,000 at the time of the workshop, leaving a funding gap. Staff outlined two options: (1) transfer general fund dollars into the stormwater fund (a transfer of that size requires a public hearing), or (2) create an interfund loan — borrowing from another city fund and repaying it over several years — which staff said would avoid an immediate public‑hearing requirement for a fund transfer. Council directed staff to get a final engineer’s estimate and to return with options the first week of June.

Council and staff also reviewed capital project finances tied to the new Stuart Hill Park pavilion. Staff said the city has a roughly $33,000 capital fund balance and is expecting a $120,000 award from a grant source referenced in the meeting as “wraps” (staff described it as not yet formally in hand). The pavilion contractor has submitted change orders; staff said final concrete, sod and sprinkler work remain and that the concrete work is scheduled to be completed in the near term.

Other operational notes at the workshop included: - Riverdale Road grading: county equipment and operator shortages will delay grading; staff said a county grader rate of $125 an hour was quoted and that the immediate cost for the Riverdale job will be about $2,500, well below an earlier $7,000 estimate in the file. - Street lighting: staff identified a $22,000 charge from Golden Spike Electric on the street‑lighting account and recommended reducing the recurring street‑lighting budget line to $15,000 after accounting for that one‑time invoice. - Class C roads: the city’s Class C road fund carried a year‑to‑date cash balance (staff said roughly $164,000), which staff noted provides flexibility for road repairs and sidewalk grinding planned for spring and early summer.

Staff proposed a tentative budget timetable: continue review on June 3; hold the tentative budget and related public hearings (including any amendments to the current year’s budget) at the council meeting on June 17; and hold truth‑in‑taxation hearings and adopt the final budget at the August 10 meeting. Staff reminded council that the tentative budget must be adopted before the June 30 statutory deadline.

Council did not adopt the final budget at the workshop. Staff will revise the draft to incorporate the changes discussed, seek a firm engineering estimate for the stormwater project and prepare draft public‑hearing materials for the June meetings.