 So as in in our city's mission statement as you can see This is pretty much going to be similar with our mission and our vision and our stairs due to the Carlson due to our Thank you our strategic plan. That's being undergone at this time. So we'll just skip through that Oops All right, there we go. All right, and now obviously our stairs approach, which is our core values with our service our Teamwork our accountability or innovation and our respect in our stewardship, which is also our fiscal responsibility These are our core values that we look at and use in our day-to-day activities as and especially with our implementing of DEIB DEIB is in our our stairs and our core values So having said that We're going to talk a little bit about our state and city constraints as you can see our state state law our Tax levy limits our state shared revenue our city city's budget parameters Our expenditure restraint which you hear us talk about quite a bit Our which is also ERP and our minimum fund balance, which we have of a limit at this time of 25% So Aillers did review this in in quite detail in our last meeting with them So as we move on to our state shared Revenue we basically want to talk about how that's gone up to 628,062 dollars overall reduction in the in the past six years and again This is six years versus five years, which you've seen in past past presentations So our 2023 allocations did increase 97,833 dollars our utility aid payments Reduction is postponed due to the Edgewater or Alliance Facility continuing operations and that's planned through 2025 now I do want to make sure everybody understands that's planned that doesn't necessarily mean that it could come sooner It was supposed to close this November if we recall But it was pushed out to 2025 so again that just means that we didn't lose the money That when it closes will happen. So again, just to keep it keep that in the forefront main drivers of increase is the expenditure restraint program where we had 83,149 dollars That's more than last year But we do need to stay in this program at this time So I know there's been discussion should we get out of the expenditure restraint not at this time So here's a nice graph for you to see it allows you to better understand where we were in 2018 and how we dropped significantly from 18 to 19 again, that was the Alliance Edgewater where they closed down a portion of it and we lost over a half a million dollars in revenue in 2020 we obviously you can see we went up or went continue to go down just a little bit and then 2021 and in 2023 we're expecting to go up just a little bit and that is by a small increase of $97,000 so expenditure restraint program and tax levy limits Which is kind of the the teeter totter of shaboy again, right? So a balancing act to stay within limitations relative to our to both both areas the Obviously the expenditure restraint and the and the levy and again the levy is set by state statute calculations for very We're thoroughly vetted in this process and Our expenditure restraint program ERP allows allows the increase of the general fund expenditures by 60 percent of the Of the percentage increase of the city's net new construction and allowable see a CPI Again in 2023 our budgets state confirmed a seven point seven percent allowed increase in expenditure per CPI Cities allowable increase for 2022 is eight point five We could increase but the general fund expenditures and levy supported funds are in that eight point five Used to saying that Tax levy limits the state the state law restricts the percentage increase of city's tax levy based on previous year Tax levy our net new construction, which was significantly lower to this last year our Actual tid closures, which we closed six tids if you recall our tids subtractions and our debt service levy Which won't happen until next year for the tids. Thank you So our tax levy which and you can see it here in our in our graph here You can see the differences. So what what we did was we put it into general our debt our capital Library transit and I just want to call out that in 2022 and 2023 Transit was at a zero that was because of the fact that transit had CARES acts through ARPA and that in that Those CARES acts acts money the money from that that we normally allocate to transit was put into the capital Capital fund we will need to replace that in the upcoming years again CARES act money was only for a short period of time So you can see that the general fund actually has gone down in tax levy or gone up. I'm sorry Just a little bit the two hundred twenty two thousand three hundred one dollars our debt again that fluctuates depending On the principal and interest payments that we have year over year our capital That stayed the same so that's zero difference and Then the library which actually ended up receiving the most from More than general fund you can see they they actually went up two hundred and sixty four thousand and fifty seven dollars and This all of this does include in the twenty twenty two numbers. It does include the Hundred and fifteen thousand for the library for the wage study difference So moving forward here's a better better view of it from a From a graph perspective you can see the breakdown and property tax levy is and amongst all of the funds Moving forward our assessed tax rate again. This is a little bit in the Inflexuation right now you can see in twenty twenty one to twenty twenty two again the decrease is due to the Revaluation you can see that the levy spread spread out on the larger city values So again as we talked about our tax base During the revaluation because the city actually grew in value the mill rate will actually drop so the per thousand Per homeowner actually will reduce so we're anticipating and again. This is just Right now. It's preliminary. We're looking at going from ten dollars and fifty six cents in twenty twenty one To eight dollars and seven cents. But again, please remember final assessment numbers Are not available from the Department of Revenue. So again, it's kind of it's going to fluctuate That's why this is a preliminary presentation today So we do need final assessments from the Department of Revenue to lock it in So twenty twenty three employee wage and benefits So the following wage wage adjustments are currently built into the twenty twenty three budget as you can see the fire union two and a half percent increase and the police officer and supervision unions they have a One one percent increase in January and then they also have a two percent increase in June of twenty June 25th Again, so that equates to a three percent But the cost to the city is about a two and a two and a half percent We are in the middle of union union negotiations with transit. So those are still ongoing and then non reps We are Looking at a two percent cola cost of living adjustment and a potential one-step increase is what we're looking to we're planning on Accomplishing so again when we look at the fire union and the police unions those negotiations Are going to again start up in twenty twenty three We will be at the last year of the negotiations or the contracts So twenty twenty three employee wage benefits the following benefits adjustments are currently built Built into the twenty twenty three budget as you can see there's no change in health or dental Insurance premiums. We were able to negotiate and hold those costs this year and actually Improved some of the benefits that are received by our team members Wisconsin retirement system pension increases. This is basically to help you help everybody understand that In twenty twenty three, you'll see a one point seven percent Which basically is a contribution of eighteen point one percent from the city Again police is increased by one point two non rep is point three and then employee contributions overall Are increased by point three zero percent of wages So again, we pay into pension the eighteen point one the thirteen point two and the sixteen point eight as an example. I Also do want to point out that the city will continue to give the HSA contribution For twenty twenty three and that was fifteen hundred dollars for family and seven hundred fifty dollars for single So that's very beneficial to the employees Twenty twenty three personal Personnel changes the only personnel changes that we have at this time are two additional positions budgeted for the the uptown social I Do want to point out that these are positions that were part of the TO so a table of organization They were not budgeted in twenty twenty two Financially because of the fact with the new construction of the facility We didn't need the positions filled because we weren't going to be having the facility available So these positions are part of the organizational table of Table but not budgeted. So this is an engagement coordinator for uptown social and a custodian Part time for uptown social, but we also had a position at public works. That was part time So it's going to create one full-time position At that at this time all other positions including vacancies are built into the budget But we'll be reviewed as we as we move forward with the budgeting process So twenty twenty three preliminary budget as of ten three twenty twenty two. So that's today So we do have a deficit and that's what we all need to understand. We have a hundred ninety two thousand five hundred eighty dollar deficit Currently in the general fund so a general fund. So that's the adjustment can be made To other other funds again, we don't know exactly where we're going to find that $192,000. So we didn't want to be moving it around much There are some assumptions the Ambulance and municipal court fees move to general fund Carlson Detman wage study Implementation is included in this Information technologies that'll be a service changes to other departments remains flat general fund contingency is also being decreased by $250,000 and the increment from the TID closures Transferred to affordable housing fund. So those are all included in our preliminary Budget so far So additional twenty twenty three outstanding items department of transportation Again, this is what we need to complete the budget So the department of transportation the connecting highway highway aids the general transportation aids Those should be coming in any day. They tend to take a little bit of time from the from the state the state of Wisconsin Department of Revenue manufacturing Assessed values those assist us in the tax rate at the end of October. Hopefully we'll have those Locked in and the final final balancing of budget Policy requires a balanced budget with no fund balance use again. This is very important We the city cannot have an unbalanced budget So no matter what and we cannot use fund balance for operations So in other words operating expenses cannot be covered by fund balance So even though we got money in the piggy bank, we cannot use that for operating funds for operations Yeah, that's an adopted policy So moving forward a fund balance the city's goal to maintain a fund balance Fiscally responsible safety net. Our target is 25 percent of budgeted general fund expenditures our 2023 proposed budget again our Exceeded target of thirty four point eight percent of the budgeted general fund expenditures and we've talked about that in the past We are consistent with Moody's credit service recommendations So we're doing very well from that perspective And here is a fund balance unassigned. So this graph helps Everyone here to better understand where we are when we look at 2020 2021 2022 and the projected budget of 2023 so you can see that for 2023 we're projecting a fund balance of 15 million 614 again, we'll see what happens in the closure of 2022 We tend to have a little bit of overflow from from one year to the next but right now we're projecting it to be around the 15 million and The red line is basically a representation of where we need to be with our policy Moving forward debt service fund notables so property tax levy increased Well levy increase is forty two thousand eight hundred and ninety five dollars We still maintain our Moody's double a two and again Double a two is the best rating that the city of Sheboygan can have with our population and economics 2023 planned geo debt Issuance which is our general obligation borrowing we have four million three hundred and twenty one thousand five four million three hundred and twenty one thousand five hundred for approved twenty twenty three capital improvements projects and two two million one hundred and twenty six thousand five hundred is the increase over 2022 so in 2022 we use general fund balance towards projects to reduce the debt issuance amount so debt service funds as of December 31st you can see Where we are with that our net net debt outstanding from 2020 2021 22 and 23 you can see that our net debt outstanding is at the fifty eight million This includes payoffs and new planned issuance So we are compliant at a thirty point zero five percent For the city so that's a very good thing So budget next steps our current budget summary documents to be presented at the committee committee meetings the week of October 10th through the 12th We will be doing adjustments after final numbers are received from the Department of Revenue and Department of Transportation Proposed budget with amendments to be considered at the committee of the whole so we'll be presenting the final budget at that point And then we'll be publishing and distribution of the 2023 proposed budget in brief at that time So I know everybody's sitting on the edge of their chair. They're so excited and hopefully you're still with me But this is our Budget update at this time for the for the council any questions Otherwise I'll turn him back over to Older Feldy Roberta Fulby Ninsky, thank you. Thank you very much When do we expect to get the numbers from the Department of Revenue? I heard about transportation, but when when do we get those for real? Sure, so the Department of Transportation. I actually was thinking we'd get it today I got an email from them earlier, but it had the wrong attachment on it So now we're waiting for them to send the correct attachment So I'm assuming it will be in the next few days here the Department of Revenue That will be closer to the end of the month They take quite a while to get those manufacturing assessments to us We can finish the budget without the Department of Revenue piece But for the council to have all the information related a tax rate and the impact on the residents here That's why we say it's kind of contingents on that because if you tell us that the tax rate Adjustment for 2023 is too high We would have to go back to kind of the drawing board and make sure that we make the adjustment to get to a tax rate That's acceptable Thank you Roger So the contingency funds are going to go down $150,000. Is that all the Pirella, can you sorry for that? So contingency funds go down $250,000 What is that fund all together and what so what's the percentage that goes down and how bad is that? What are the implications of that? So the contingency line item in the budget is actually a planned use of fund balance for if it's one-time projects or Emergency type situations that might happen throughout the year for example the pipe that burst at the police department Utilized contingency which was fund balance to pay for those repairs so that the police department didn't have to come up with Thousands of dollars from within their operating budget. So for 2022 I and actually I believe in 2021. It was a million dollars of planned use 2022 with 750,000 so now we're going down to 500,000 I believe and I can have administrator will jump in if you would like But I believe it's the thought that we have had several projects that have gotten Taking care of so the subs the substantial amount that we've been having on budgeted for that in case of Emergency or those one-time projects That has been getting reduced because we have been completing quite a few of those items So it is actually a positive in a way because we aren't going to be using fund balance on these one-time items We're going to be having that fund balance available for other things such as capital projects Thank you, and then will you share the presentation, please sure. Thank you any others