this public hearing on the proposed Ellsville 2027 budget. That is now 630. What is this, the fifth?
As noticed. So present. Yes, sir. Trevor Sanger. Here. Scott Goldham. Here. Dan Swafford. William Ellis.
Here. Pamela Samples. Okay. A little bit different format than what you see in our normal meetings.
We're just going to jump right into a presentation by town manager and staff concerning the proposed
budget for 2027. Like Scott said, we're doing our 2027 budget. I think anybody involved in the budget
process would agree. We've had plenty of transparency and community focus as we went about doing our
budget this year just because of fire territory and reorder and what have you.
As always, this is my 28th budget. So as always, we put a lot of time and effort into this, but if ever
there was any more effort than this year, I don't know what it was. We probably had 50 meetings and
we tried to figure out how many meetings we had about this year, but there's no way to count them. Anyway,
appreciate everybody's attention to getting the budget together and we're looking to,
invest in infrastructure and and and you know we we really want to expand our services as we move forward
and so no one else going to put together the budget and tell us all about it. I'd ask that everybody
hold questions until the end of the presentation then we'll slide back through it again make notes and
we can ask questions and get into the weeds if you will if we need to.
Thank you. I did want to make one note that Cats TV is not currently present this evening. This video
is on Zoom. I will be uploading it to Cats and they said that they have it available tomorrow by noon.
And with that, tonight is the public hearing for the Town of Belksville proposed budget for 2027. I'm
going to start with the overall financial plan and we'll walk through the major departments with the
funding sources so everyone can see what is being budgeted, but also where those dollars are coming from.
One thing to keep in mind throughout the presentation is that there are proposed appropriations. This
budget establishes spending authority, but it does not mean that every dollar will necessarily be spent.
For the council on their packets, each half will start the beginning of the additional appropriations
for each fund. And so with that, the next meeting for the budget will be October the 19th. This is a
special meeting as well at 6.30 p.m.
So on to the next slide. So this first table gives you a town-wide overview. You have the estimated
beginning cash, the estimated 2027 receipts, and the proposed appropriations. The difference between
the estimated receipts under the proposed budget, and then the projected ending balances. So one thing
I did want to draw your attention to,
When you see a negative number under the problem with the budget surplus or deficit, that doesn't
automatically mean that the fund is insolvent. It means that the proposed appropriation exceeds the
revenue estimates for that dealer, so some existing cap is going to be available to support mass spending
authority. You will also know that some of the new funds created for 2027 begin with no beginning balances,
and so that's going to affect how the projected ending of balances here on this table as well.
So I'm going to explain the major funds individually as we move through the presentation rather than
trying to unpack everything on the one side. So that's why I can now see the third tab for the council
of DTH track. The first department we'll cover is the fire department. So I did want to note there are
two separate fire slides tonight because the 2027 structure depends on the outcome of the November 3
reorganization.
This slide shows the municipal fire structure. So this total proposed funding shows $4,242,455 that
is supported through several funding sources rather than just the annual funds. I did want to draw your
attention to the largest piece, the municipal fire at just over $3.1 million.
and it has additional support from global income tax. It would have fired CCD and our economic development
tax. So if the reorganization is approved, this is the municipal structure that would apply, subject
to the remainder of the budget and then the OGM process. This is important to point out because this
is one fire funding scenario. The next slide is the alternative scenario. So here you will see the special
fire protective tariff.
This slide is $4,168,425. It consists of the Spinal Fire Protection Care for a General Fund and the
Equipment Replacement Fund. So if reorganization is not approved by November 3rd, this is the alternative
fire funding structure that will be reflected in the proposed budget in excess.
I wanted to keep these two scenarios extremely clear because we are not providing the municipal buyer
budget on the previous slide, buyer territory budget. If reorganization happens or doesn't happen, it's
going to be one or the other. So moving right along to the police department. Again, this is another
new fund that will be created for 2027.
and the department is funded from several sources. The primary police fund, just about 2.2 million,
would have additional funding from local income tax, public safety, human capital development, and economic
development income tax. And so rather than concentrating on the entire cost of the department into a
single fund, this slide shows the available revenue sources for the purpose of the activities. The new
municipal police fund is also one of the five you saw on the summary side.
Summary 5, excuse me, that begins 2027 without an existing balance, which is important when you're looking
at the projected ending of this. So moving along to township assistance. This is another component of
the proposed 2027 budget associated with reorganization. The total proposed budget is $530,000. Of that,
$450,000 is within township assistance.
and another 80,000 is supported through economic development income tax. This is being shown separately
so that the cost of providing these services is transparent rather than being absorbed into another
department. And then we move on to the administration for which we're just on the first side. And the
proposed budget for this is $1,080,460. It is supported primarily with the general fund as well as CCDs,
development tax. One thing I just want to draw your attention to in this budget is because of the changes
within 8.2.0, the planning vehicle and the planning computer and software expenditures that appear within
the administration budget for reporting purposes, it still wants operational needs the planning department.
So I just wanted to bring that to the council's attention and the planning will still be the one that
Appropriates those funds, but for account services, it needed to go to the administration. You move
in along with the planning. So planning and zoning has a proposed budget for 2027, $589,159
funded exclusively through the general fund. This represents the operating budget for the department.
So the great great farmer.
The Department of Public Works. I think we're gonna spend a little bit of time in this fund because
the proposed public work budget shown here is $1,661,324, which is supported by motor vehicle highway
and being restricted, local road and street, cumulative funds, municipal cert tax, and eventually the
new municipal wheel tax. So you'll notice that we have budgeted zero expenditures from the municipal
wheel tax fund in 2027.
This was intentional because it is a new revenue source. The plan was to allow the fund to begin to
accumulate cash rather than immediately building expenditures around it. And then on the summary page,
I wanted to highlight that it shows an estimated ending balance of negative ninety thousand four hundred
and two, but that number of these contacts.
The 2027 appropriations were intentionally built with sufficient spending authority to address the additional
road responsibilities that have been contemplated under reorganization. At the same time, the revenue
estimates were conservative. So historically, MVH has also not spent every dollar that has been appropriated.
So for perspective, in 2023, the fund ended with $337,000 in cash and ended 24 with $373,000 in cash.
So we will continue to monitor that from both these actual revenue and expenditures in all of the 2027.
But the projected budget was basically on low appropriations being available for expenditures. So parks
and rec, again, pretty straightforward. The parks budget for 2027 proposed is $112,400 funded through
the Parks and Remuneration Fund.
You can see on the front line summary that the parks is projected to maintain their positive managing
tax balance, even though that we've proposed expenditures are slightly greater than the estimated receipts
for the year, but that's been seen a whole five of the leading tax balance matters in the delivery of
these funds. So we'll get through the rest of these super quick. Then last one, I wanted to separate
these out just for the council to see. They could be a general line purchase associated with redevelopment.
And I like to isolate that because
Since the tests have not generated any revenue yet, we are still continuing to track redevelopment commission
funds that are used separately so that we can pay back the general once the tip starts receiving revenue and also.
I wanted to highlight the Building and Construction Related Fees Fund. This is a new fund that came
through the legislature that we have to put all of the funds in there and isolate it now for very specific
uses. I also want to highlight the law enforcement, continuing education, and the restricted and unrestricted
mobility funds. Since these funds have very specific revenue sources and specific purposes, I want to
keep them separate so that we can see it in a non-significant way in the general way.
This should be very similar to what we saw in 2026. The proposed debt appropriations totals $379,349,
consists of $119,000 in debt service and $206,000 in lease rental payments. And then this will bring
us back to the Townwide financial summary that we started with. I don't want to go back through everything,
but I know we're going to have questions at the end, but I did just want to
say that a negative number in one column does not tell the whole financial story, especially since we
started the new funds this year, then you'll have the beginning cash balances. As always, we'll continue
monitoring all the actual cash revenues and expenditures throughout the year, just as we've always done.
And then I did want to follow up with our next meeting for the budget. It will be Monday, October the
19th at 6.30 PM, with our two regular council meetings occurring in between.
Thank you, and we don't have too many questions. Any other questions at this point for the council?
Bring it over here. Well, if we have no questions, I believe we're done.
I don't, because a lot of this, we've kind of gone over the piece, you know, over the last eight months,
so there's no surprises here. No, I'm good with that too. I guess, just help me wrap my head around
the fire portion of the November election. So, we'll have, if reorganization passes, the municipal fire
will be the budget.
so and I don't have that in front of me but the budget we're separating out municipal fire will become
the budget. If re-organization is not to pass we will go in and we will reduce a lot of the simple budget
so the administration, the planning, the parks, all the other municipal budgets and we will use for
fire the special fire territory protection budget which only has that general fund
and the equipment replacement fund together. So if you look, there's a little bit of a difference. It's
about 74,000 and some change. And that's in the municipal budget. That's the only difference. And that
was just because there was a little capacity of letting you for the fire to pick up. I guess. And Trevor,
that's one of the reasons why public really needs to know that a no vote gives them fire territory.
So tax is a big concern.
Fire territories, their tax bill is going to be high. Other than in the town, you'll save $2 this year.
But then as soon as we have any new development, that flips down the downward trend. Well, that was
a question that I had got this week. So again, walk us through this, because you understand it as well
as we can. So let's assume that everything goes through. Solidation goes through. This budget is on tape.
We have a tax increase, but not a huge one, but a tax increase. Assumes for a second it failed
and consolidation does not go through. There's still a tax increase to make up the buyer apartment.
Do you know the difference between the two standards? Absolutely. On a $200,000 home in the town of
Ellipsville, if the yes carries, it's a $66 a year or more increase on an average $200,000 home. For
consolidation?
Yes, for consolidation. If it's no and the fire territory, it's $64 of an increase. So we're talking
about $1.50. Correct. Okay. Now on the township, it's like night and day. The township on a $200,000
home is $115. And that's it. For consolidation? For consolidation, yeah. So it goes less than $10 a
month. Yes. And let me get the actual
Do you have the figure for the $200,000 homeowner chance? Not for the township side. I think that's
an important thing. And again, Kevin, please forgive me. Because of the way we've had to deal with the
fire department and some of the pressures coming from external to the town to keep the fire department
running, we're forced with a tax increase no matter what we do or not.
Right. It's going to be just about the same within $10, $15 a year. I have various dollar amount homes.
I'm going to read those for the record real quick. Let's just call it $300,000 home. Okay. $300,000
home in the town won't cost anymore. Okay. Salvation or the fire territory. That is correct. The difference
is long-term, the fire territory does not offer any mechanism for the taxes to go down. Right.
for the township for a $300,000 home, we're looking at, that's looking like 173 and 288, and I'm not
sure, can you verify that, because? 173 consolidation goes through and 288 if it does not. Yes, right,
okay. Let me check on that. The one thing I would like to caveat this with is that
property tax rate will only depend on the assessed value and the levies and the DOGS certification.
So we are within the range of error. But I really want to steer away from using exact figures that may
not come to fruition because each individual tax bill is going to be different. We have to stay on average.
But I think that, again, I know what you're saying. The unfortunate thing or fortunate thing for most
people is that they don't care what you just said.
What they care is, what did my bill go up to here? And so if I walk this back just a little bit, we
got window position, what was it? December 27th. June, someone out there where we've told, if you don't
have fire territory, we're gonna push another fire department completely. No, that was December of last
year, the same day we had our first rehabilitation meeting. So to preserve your fire department, we
were forced as a council of no choice between do nothing and essentially,
and not the fire department's fault, let it bankrupt town, or start a fire territory, which was under
the law, what we were required to do, rather than just letting this continue to go as it's going through
almost 70 years now, where you had adequate fire protection, and you were paying a given cost for it,
but you hadn't adequate fire protection. So in the end, we had to pass the fire territory, which means
you're gonna have a several hundred dollar a year increase
upfront for the people in the township. For the people in the township, we also, at that point in time,
were asked about consolidation. And again, guys, correct me if I'm wrong here. We just said, yes, let's
look at consolidation. That way everybody gets a vote. Everybody gets to talk about what happens in
the town. And in doing so, you still have a property tax increase or you have tax increase, but it's
less to do that than it is to go with fire territory where you don't get a vote at all.
It would be absolutely clear on that. And again, it's individual's job duty to think about consolidation.
But I've heard a lot of things this week about, oh, this has been across so much more money. It's been
in blah, blah, blah, blah, blah, blah, for people who really don't know what they're talking about.
So the choice is A, I pay more and I get less, or B, I get more and I pay less. So again, it's up to
each individual deciding whether you want to consolidate or not. And like I told you in front of you,
I had those hearings.
We're not promising you a rose garden. We're gonna lay all our care cards on the table face up.
Here they are. If we do not consolidate, we have a bigger problem, or we have a bigger tax bill for
the fire department, right? If we do consolidate, then everybody throws in the money and we actually
have a lesser increase for everybody involved. And everybody did get some money for what goes on. Okay.
Well, to be clear, no matter what the deductions are, we're only talking about yes versus no. No is
still more expensive.
Remember, rate? Show of hands, anyone that pays their bills in rate? No one. Okay, thank you. I know.
It's hard for me to get away from it. I get that. But rate is a trick that politicians use to hide their
tax increases. And we are not going to do that here. But I have a different number. The reason I've
been given the $200,000 example more often because at $300,000, the Aliceville residents don't see an increase.
So people are going to say, oh, you're just hiding the increase. At $200,000, we can kind of see. Now,
$245,000, that is where, approximately, where the last, before budget, your tax caps start to kick in.
And I mean, I can, at a $245,000 home, rural would be $141,000 with,
So essentially $12 a month. And $235 without reorganization. So about $20 a month. Correct. And the
town would be $81 with reorganization and $78 without. So they've saved three bucks. But again, because
of the way they're urban and rural tax districts, the moment there's new construction in one of those
agricultural lands, as it was in the urban, that's going to lower everybody's taxes and then
This becomes a big thing. And the reason I'm bringing this up here is because we're truly looking at,
I don't know how to say this, almost a budget that is split that we really can't predict. So we have
to give everybody the, this happens, then this is your budget. This happens, then this is your budget.
And I don't want there to be any kind of push by anybody to either consolidate or not consolidate. I
just think that literally we need to lay the numbers on the table and say, here's what you're gonna
get either way.
Are you going to get a quality fire department anyway? You most certainly aren't. You most certainly
aren't. If we consolidate, you get less. If we don't, you get it for more, but you still get the same
one you've had for almost 70 years. And when somebody comes up with the question, well, why did you
do that? Because we were pushed into it by other entities existing in this county. It was not our choice.
So here we are as a town having to plan, not knowing what's going to happen in the two minutes between
1159 in December the 31st,
and 1201 on January 1st. And that's what it boils down to is what do you people want to pay for? Because
there's nothing to get here. If you've got questions, come ask. Here's the budget. It went live at 630,
correct? Yes, sir. Please, by all means, take this thing apart. Ask the questions of everybody you need
to ask, because we need to know. And we need to ask those questions ourselves as to did we miss something?
Because we are literally preparing two different budgets here.
One for Envision Town and one for the current town that, oh yeah, we gotta have to do X, Y, and Z to
make it still work despite what we've done for the last 70 years. So please, everyone, take this budget
apart. Look at it very closely. Ask your questions. Even the people in the room who helped put it together,
go back to it again. Make sure we did not drop a combo. We did not have a placeholder move. Because
this is so odd. Usually the budget's here for
I've been doing them with you, Mike, now for almost 20 years. They've been pretty simple every year.
It's up down in this category, up down in this category. This, this is a whole new wave. So let's make
sure we disagree with that, folks. And with that, one question people have asked me, the rates are similar.
Why is the fire territory dollar amount so much higher? Well, good analogy is if you're on, you have
a phone plan, you and your spouse each have a separate plan. Well, those plans are going to cost quite
a bit for each of you.
But if one of you drops their plan and goes on the family plan, that's just a little bit more.
So reorganization is like getting on a family plan. Well, you're going to be running three nights a
weekend, so that was a long time. Three nights, no. Nobody's here. Yeah. Calling after nine, yeah. OK.
OK, again, before we end this tonight, anybody want to chime in with anything or any concerns for any
of you, I know you all had to do a lot of work this year to prepare it.
and thank you. Yes, absolutely. Is there any concerns at all? Anything you want to see changed? Anything
that hangs over our head that we just haven't seen yet? So we're not waiting on numbers to drop from
DLJF or over from the state or anybody like that, right? Yes, sir. All right. Our next meeting is again
the 12th or 6th. What'd you say it was? 1990. I apologize. Yes. So again, folks, please take this apart.
Look at it very carefully.
I don't know. I don't know. I don't know. I don't know. I don't know. I don't know. I don't know. I
don't know. I don't know.
So do we have any questions? All right. So you know, for the visit for council for journey.