Council hears budget options and adopts policy to apply internal utility rate for nonprofit daycare

City staff presented the draft 2025 budget and proposed a recommended mill levy of 39.577, which staff said would reduce the typical tax bill for a $100,000 home by about $15 compared with the current levy. Staff noted the revenue-neutral rate would be 37.989 and outlined possible options to reach that level (reducing modest discretionary items, trimming capital transfers, or delaying wage increases), while warning deeper cuts would reduce services.

Staff emphasized that the city has secured roughly $4.6 million in outside grant funding during the administration’s tenure for projects such as childcare, street improvements and park amenities. The presentation included a breakdown of general fund expenditures (personnel about 67% of the fund) and a review of discretionary cuts staff could propose if council wished to further reduce the levy.

Related to the budget priorities, the council considered Municipal Policy 1-10 to put the nonprofit childcare center (H4C) on the city’s internal utility rate (city internal electric rate cited as 6.5¢ per kWh). City Administrator Stiles said the change is intended to support the center and estimated the policy would save the center about $15,000 per year while the city would recover its internal cost. The policy specifies eligibility — the discount applies only while the facility remains a nonprofit childcare provider — and staff promised an annual report to council showing usage and savings.

Council discussed traffic and safety concerns around the daycare site (possible speed, crosswalk or signage measures) and asked staff and the police chief to study enforcement and whether a school/traffic zone or other traffic-calming measures are appropriate; staff said any speed-limit change may require ordinance action and pledged follow-up.