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The consensus of the Council was to move forward with the fund balance policy as proposed. <br /> 2.02: Review 2025 Budget& Levy Before Final Adoption <br /> Finance Director Lund reviewed the Staff report concerning the 2025 budget and levy with the <br /> information received from the County. <br /> City Administrator Hagen discussed the rental licenses fees for 2025 and if they would be <br /> discounting this fee for anyone who paid for their rental license in 2024 at the higher rate. He <br /> shared that an estimated $100,000 in revenue will be lost if they discount the fees for 2025. He <br /> explained that they would have to make up for this in the levy. <br /> Councilmember Musgrove asked if they are looking at doing a refund of these license fees or <br /> spreading out the overage as a credit over the next upcoming years of licensing fees. <br /> City Administrator Hagen shared that they discussed both. He noted that if they wanted to issue a <br /> refund for the licensing fee, time would be limited to get this done and these fees are adopted by <br /> ordinance. He noted the discussion shifted to offering these rental license holders a discount next <br /> year to make up for the overage this year. He added that they also discussed spreading out the <br /> overage over the next few years. <br /> Councilmember Woestehoff asked if the budget they are reviewing accounts for the $200 fee. <br /> City Administrator Hagen said yes. <br /> Councilmember Howell noted a refund for 2024 would not make a whole lot of sense. She <br /> explained that the high amount that was paid for the license in 2024 does not reflect what the <br /> license holders got out of it. She said doing a credit for 2025 makes the most sense to her. <br /> Councilmember Musgrove said it would be cleanest to do a refund. <br /> Councilmember Woestehoff said he is not comfortable with this. <br /> Councilmember Specht asked if they have any ideas as to where they could make up the $100,000 <br /> in missing revenue this credit would cause. <br /> City Administrator Hagen stated the most likely solution is from building permit revenue. He noted <br /> they generally bring in more building permit revenue than they budget for. <br /> Councilmember Woestehoff asked if the building permit fees are changing in 2025. <br /> City Administrator Hagen said they are making minor adjustments to the building permit fees. <br /> Councilmember Woestehoff asked if there are other areas where they could slightly increase rates <br /> and fees to offset the lack of revenue. <br /> City Council Work Session/November 12, 2024 <br /> Page 2 of 9 <br />