On their first night of examining proposed budgets for 2024, the Warsaw Common Council reviewed 25 budgets from seven departments during the course of its nearly three-hour meeting Monday night.
Before they began, Mayor Joe Thallemer commented, “Looking back at our history, from 2013, the past 10 years, our rate has only been lower than what it is now two times. So we’ve been very successful - and I can tell you our budget has increased, the levy has increased from $10 million to $16 million - but we kept our rate down almost at the 2013 level. The 2013 (tax rate) level was $1.17 (per $100 of assessed valuation) and in 2023 the rate was $1.18.”
He said they’ve been able to keep the rate down because of stimulated investment in the community, noting that there’s also the factor of reassessments.
“Our hope is this year we’ve got a 4% levy growth factor that we are allowed, which means that we can raise an additional 4% from last year’s maximum levy, both on fire territory and on the city. That 4% is designed to handle across the living adjustments, increases in the cost of goods and services,” Thallemer said, but it can’t increase without increasing the tax rate unless the city’s assessed valuation is broadened.
The city did not have its certified assessed valuation as of Monday, but the city has been able to provide services at a pretty flat tax rate and they want to continue to be able to do that.
He also told the council the departments figured their budgets with employees receiving a 3% increase in their pay across the board. Instead of overbudgeting the city’s health insurance payments at 12-14% for next year as has been done in the past, and then making cuts later, Thallemer said he wanted to be more realistic this year and health insurance budget increases were kept at 4%. Preliminarily, the rate increase for 2024 is expected to be 2.6%, but the city will know for certain by next week.
Airport Manager Nick King presented his two budgets first, starting with the airport general operating fund. It’s proposed at a total of $1,751,461 for 2024, a 45.12% change from the 2023 budget of $1,206,922.
A large reason for that increase is due to capital outlays.
“So you guys will see a very large increase there and that is due to the several projects that we have ongoing at the airport,” King said.
The airport is in the middle of the power line lowering projet and all of the steel has been ordered for it. It is hoped they will break ground in the spring and be completed by November 2024. There will be some big drawdowns on that project.
The airport is working on a runway safety area improvement program, which was a big push by the FAA. That project is about 55-60% complete, but will likely carry over in 2024.
A corporate taxi lane is being rehabilitated. It is 43-44 years old and has never been reconstructed or repaved, King said. Working with state Rep. Craig Snow, he said they received a $2 million grant from the state for that project, but the 2024 budget includes $200,000 in contingency funds.
They also will be starting the environmental and design portion for the north/south taxiway, the second oldest pavement on the field. King said they’re hoping to get that reconstructed in 2025. The airport also is due for a wildlife hazard and assessment study, as required by the FAA and they have a grant for that.
The airport also received a $1 million grant from the IEDC to go toward whatever project is most needed, and King said that is most likely going toward the Instrumental Landing System.
In total, the airport will be bringing in just shy of $12 million in grants in 2024 between the state and federal government.
His other budget is the aviation deprecation fund, budgeted at $170,000 for 2024 to help cover the capital improvement projects.
Oakwood Cemetery sexton Hal Heagy presented two budgets. The cemetery budget is proposed at $858,471 for 2024, up 7% from the 2023 budget of $802,997. The permanent fund budget was proposed at $101,500, up 23% from the 2023 budget of $82,000.
The big item in his first of three budgets - the Park and Recreation Fund - according to Parks Superintendent Larry Plummer, was $80,000 for the asphalting, sealing and striping of the basketball courts at Boggs. He said it’s been about 20 years since anything has been done out there. Another $30,000 is budgeted for fence replacement at the Kelly Park courts.
The total budget proposed for 2024 for the Park and Recreation Fund is $2,964,700, a 3% increase above the 2023 approved budgets.
The park non-reverting fund is proposed at $23,350, while the park non-reverting fund is proposed at $45,000. The parks board approved all the budgets at their June meeting.
Human Resource Director Denny Harlan had the least amount of budgets to present Monday - one. It’s proposed at $334,907 for 2024, an increase of $74,783 over the 2023 budget of $263,124.
One reason for the increase is that it was decided the part-time custodian at City Hall will become a full-time position, which also will include PERF, insurance and all the other fringe benefits. Just the salary budget for the janitor/maintenance position will be $54,000 for 2024.
Thallemer said the position will be more of a maintenance position than a janitor position.
“This building is subject to maintenance issues almost on a constant basis,” he said. “... Having someone to be able to stay on top of them could potentially save us and we have needed this a long time. It’s time to pull the trigger.”
Fire Chief Brian Mayo presented four budgets, including one of the biggest budgets for the city.
The fire territory operating fund is proposed at $5,779,363 for 2024, a 6.84% over the 2023 budget of $5,409,363. The equipment replacement fund is proposed at $1,661,268, a 19.19% increase over the 2023 budget of $1,393,829. The fire pension fund was presented at $275,117 for 2024, while the fire territory hazardous materials response fund was given at $1,200.
Thallemer asked Mayo to give the council a “high-level” report on his concerns about fire station No. 2. Thallemer said they didn’t have solutions yet for the building, but he wanted the council to be aware of the building’s issues.
“Station 2 is 50 years old. It has been refurbished, rehabbed and redone over the years. It is definitely what I would call its end of life cycle. We can’t go up because the footers are too old. The way they were designed, it was designed one story, so we don’t really even have the capability of adding out or up because of the design features,” Mayo said.
He said the crews have done a phenomenal job of “band-aiding” the building over the years.
There’s a rough sketch of what is needed thanks to a local design firm. The bays can be saved, but the interior needs redone and the old living quarters need destroyed. Parking will be a challenge because the footprint is limited. The plan is build a fire station there and build up with the right footers, but how that will look and the financing are in discussion. Mayo said they are exploring options.
Thallemer said something needs to be done, but there aren’t any current plans and nothing is in the budget. He said station 2 will be where it’s at because it has a good response time, but it’ll just look a little different.
Clerk-Treasurer Lynne Christiansen presented four budgets. Her clerk budget was proposed at $192,195, a 4.56% increase over the 2023 budget of $183,610. The general obligation 2016 bond fund, which was used to building fire station 3, was presented as $259,200. The bond is scheduled to be paid off in August 2031. The park district bonds, used for the construction of the park office building, is budgeted as $341,507 in 2024. That bond is scheduled to be paid off in January 2032 and 2024 will be the first year for a payment. The last budget Christiansen presented was for the cumulative capital improvement fund at $70,000.
Thallemer presented the most budgets - nine - to the council, which included several new ones.
The mayor’s general budget was presented as $253,079, a slight increase from the 2023 budget of $258,437.
The common council’s budget was proposed at $2,180,720 for 2024, a decrease from 2023’s $2,284,296. It includes contract services with organizations like the Animal Welfare League and $30,000 for a Main Street coordinator. That $30,000 is just a place holder for the position at this time, Thallemer said. The coordinator position would not be a city employee but the city would pay toward the position’s wages.
The Economic Development Income Tax (EDIT) budget is proposed at $1,979,700, a slight increase from the 2023 budget of $1,915,452. The riverboat fund is proposed at $500,000, an increase from the $300,000 budgeted for 2023.
Two new budgets are related to the national opioid settlement. The unrestricted budget is proposed at $53,000, while the restricted budget is proposed at $135,000. The restricted budget is primarily for treatment and prevention programs.
The city’s American Rescue Plan Act (ARPA) budget is proposed at $995,000 for 2024. ARPA funds have to be earmarked by the end of 2024 and spent by the end of 2026.
For the EDIT Revolving Loan Fund, $200,000 is proposed for 2024, while for the Cumulative Capital Development Fund $825,000 is proposed.
The next night of budget review will begin at 5:30 p.m. Aug. 21.