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Acting Mayor Riley asked if the status quo budget has capital improvements included and that <br />they would only have to borrow additional capital budget or if this came out of the budget and <br />becomes part of the capital expenditures. <br /> <br />Finance Director Lund explained that since the funding for the new plow trucks was already <br />authorized it was put as part of the status quo budget. She noted that she did remove these items <br />for purposes of the capital equipment certificates. <br /> <br />Councilmember Musgrove asked for a definition of ‘status quo’ in terms of the budget. <br /> <br />Finance Director Lund explained that there have been small line item increases in the regular <br />budget. She stated that it is the sum of all of the budgetary line items that are non-discretionary. <br /> <br />Councilmember Woestehoff asked if 1% equaled $182,000 on the budget. <br /> <br />Finance Director Lund said yes. <br /> <br />Acting Mayor Riley noted that the status quo budget includes items that are already approved and <br />items that have been built in the next year's budget. <br /> <br />Finance Director Lund said that was correct. She discussed what the status quo budget includes. <br />She reviewed the items that were additional requests, including personnel requests and the capital <br />equipment. <br /> <br />City Administrator Hagen stated that rather than paying for the plow trucks up front it can be built <br />into an equipment certificate which would increase the annual debt service levy by $70,000 per <br />year. <br /> <br />Finance Director Lund noted that she did not include the 2025 and 2026 capital equipment in the <br />equipment certificates. She stated that the EDA and pavement management levies stay constant. <br />She shared that the total proposed levy would be $20,545,000, which would be a 12.67% levy <br />increase over last year. <br /> <br />Acting Mayor Riley asked if the 12.67% is the all-in increase if all requests were made. <br /> <br />Finance Director Lund said yes and explained that this takes out the $544,000 which was for the <br />plow trucks which frees up the budget. She noted that she also did not add back the $500,000 for <br />pothole patching, nor the low prior items. <br /> <br />Councilmember Specht asked if they choose to do the debt on the capital equipment if it would <br />only be a 12.67% levy increase. <br /> <br />Finance Director Lund explained that the items for the capital that she just reviewed were for the <br />12.67% increase, including the two plow trucks. <br /> <br />City Council Work Session / July 25, 2023 <br />Page 3 of 11 <br /> <br />