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HomeMy WebLinkAboutCouncil Minutes Building Safety Budget Meeting - May 18, 2026 (208) 359-3020 35 North 1st East Rexburg, ID 83440 Rexburg.org | Engage.Rexburg.org City Council Fiscal Year 2027 Budget Meeting Minutes – May 18, 2026 Mayor Jerry Merrill Council Members: Bryanna Johnson David Reeser Colin Erickson Bill Riggins Eric Erickson Alisha Tietjen City Staff: Spencer Rammell – City Attorney Matt Nielson – Finance Officer Keith Davidson – Public Works Director Alan Parkinson – Planning & Zoning Administrator Scott Johnson – Economic Development Director Deborah Lovejoy – City Clerk 2:30 P.M. Fiscal Year 2027 Budget Meeting – Building Safety, Planning & Zoning, Economic Development, and Geographic Information Systems.  Finance Officer Nielson reviewed the Building Safety Budget Report. Revenues, in 2024, the department brought in approximately $1.4 million in revenue. In 2025, revenue totaled about $1.3 million. For the current year, after subtracting the carryover amount of $18,780 from the projected total of $1,533,490, revenue is estimated at approximately $1.5 million. This represented some growth over the previous year. For the following year, revenue is projected at about $1.4 million Additional permit data supported this projection. As of May 18, permit activity has been reviewed for the period from January 1 through May 18. On May 18, 2025, the total number of permits issued was 477. On the same date in the current year, the total was 589 permits, representing an increase of 112 permits over the prior year. Finance Officer Nielson said historically, the Building Department has observed a pattern in which commercial development increased while residential development decreased, with the two trends typically not occurring simultaneously. However, current conditions differed from that pattern. Residential activity has not experienced the expected decline, while commercial activity has increased. As a result, both markets are performing well at the same time, which is reflected in the permit numbers. The Building Department, permit fees are collected at the beginning of a project, while the associated work and inspections occurred over an extended period. A large permit fee might be paid upfront, but inspections and project oversight could continue well into 2027 or beyond. Therefore, revenue collection and workload did not always occur within the same timeframe. Salaries, the staffing list includes the department head, five inspectors, one permit technician, and a permanent part-time position. Certifications and training, an additional $5,000 has been included in the budget for certifications, primarily to account for anticipated credentialing efforts. Overtime, costs remain relatively low. The previous year's budget had included approximately $120,000 to add a new employee, and those costs had now been incorporated into the appropriate salary and benefit accounts for future years. Part-time wages are budgeted at approximately $32,000 for the upcoming year, largely reflecting permanent part-time position. Employee cash-outs and benefit costs showed a noticeable increase compared to prior years, primarily due to the addition of new staff members. The department continued to maintain a strong workers' compensation record with relatively few claims. As a result, the department received favorable workers' compensation adjustments, which helped reduce overall costs. Expenses, including uniforms, budgeted at $2,500, and wellness expenses, budgeted at $1,900. Additional discussion focused on supplies and equipment. The supplies account primarily covered small tools, equipment, and technology purchases rather than travel expenses. This included items such as tablets used by inspectors in the field. Several tablets will likely need replaced soon. The budget forecast anticipated these technology upgrades over the coming years, although there is recognition that replacements will likely need to begin sooner rather than later to ensure building staff had reliable equipment for inspections and fieldwork. Hired work, a relatively large amount has been included in the upcoming year's budget to account for the potential implementation of new software. The estimate includes approximately $30,000 in one-time implementation costs, which would cover the setup and deployment of the new system. Finance Officer Nielson suggested that the budget be increased by an additional $10,000, bringing the implementation estimate to approximately $40,000. This adjustment would provide a buffer against unexpected costs and help avoid budget shortfalls later in the year. Discussion regarding the new software and whether it will support permitting, licensing, land-use management, and related departmental functions. Because the Building Department operated as an enterprise fund rather than relying on the General Fund, accommodating the additional implementation expense is viewed as more manageable. The department's current software provider, Cityworks, implemented a system update the previous October. The vendor has not adequately communicated the extent of the changes associated with that update, contributing to ongoing frustrations with the software and reinforcing the department's interest in exploring alternative solutions. Travel and training expenses have increased slightly to account for the addition of a new employee and the associated training requirements. Overhead charges were reviewed, including costs associated with Geographic Information Systems (GIS), shop services, and general administrative overhead. The Building Department has been assigned a relatively significant share of overhead expenses. However, because the department generated its own revenue through permit and inspection fees, it was considered appropriate for those revenues to help support broader organizational costs. Vehicle, replacement planning was also discussed. The department typically budgets for the replacement of one vehicle each year. With seven full-time employees, this replacement schedule effectively rotated vehicles approximately every seven years. This approach ensured that inspection staff have reliable transportation while also creating opportunities for other departments to acquire retired vehicles. Older inspection vehicles are often reassigned to departments such as the Parks Department, extending their useful life and maximizing the City's investment. Discussion regarding the estimated cost of approximately $52,000 per vehicle. City Staff noted that government purchasing contracts allowed the City to obtain vehicles at significantly reduced pricing compared to retail market rates. While vehicle costs remained substantial, the trucks purchased are considered reliable and well-suited to the department's operational needs. Because inspectors relied on their vehicles daily to conduct field inspections and serve customers throughout the community, vehicle downtime could directly impact departmental operations. HVAC, there is some funding in the finance budget that was reviewed and $65,000 is allocated for this project from the Building Safety Department. Discussion regarding replacing the City Hall roof, it was installed in 2009 and is nearly 17 years old, exceeding its expected 15-year lifespan. City Building Maintenance Tim Bowman evaluated the condition of the roof; the consensus is to prioritize replacing the aging HVAC equipment before undertaking major roof work. The existing Daikin HVAC units are nearing failure and now require daily resets, compared to weekly resets previously. There is concern that the system may not make it through another winter without significant issues. The project has been budgeted for several years and was carried forward into next year's budget. With the new fiscal year beginning in October, scheduling most of the work around that time would place most of the expense in the next fiscal year's budget. The preferred schedule is to bid the project in June or July and begin construction in August. This timing minimizes HVAC downtime and reduces the risk of losing heat during the winter months Finance Officer Nielson noted that $125,000 of the department's $650,000 allocation was charged toward the City's purchase of the property near the library.   Finance Officer Nielson reviewed the Planning and Zoning Budget Report. Salaries FT: the department currently has approximately 2.75 full-time equivalent (FTE) positions. This figure reflects shared staffing arrangements between departments. A portion of Planning and Zoning Administrative Assistant Kaite Saurey’s position is charged to the Building Department because she also serves as the backup Permit Technician. Planning Assistant Kyle Baldwin’s position is shared with the Public Workds Department, which covers 25% of his salary. This cost-sharing arrangement contributes to the 2.75 FTE total. Revenue for the department is generally limited. While revenues are expected to reach approximately $45,000 this year, the budget is conservatively set at $40,000 because historical revenues have typically fallen in the low- to mid-$30,000 range. Salary projections include a 2.73% Cost of Living Adjustment (COLA), which has already been incorporated into the budgeted salary figures. Certifications Raises – Budget: particularly in anticipation of onboarding a new employee to replace Katie and supporting professional development needs. Kyle is expected to pursue and complete his AICP (American Institute of Certified Planners) certification this fall. Any related expenses would be paid from the current budget. The certification process will likely include a study course costing approximately $300. The course is considered worthwhile because it helps improve exam preparedness and reduces the likelihood of needing to retake the test. Overtime: costs for the department are minimal and are intentionally kept to a minimum. Approximately $1,100 has been budgeted for overtime, while actual overtime expenses this year have been about $354. The budget also includes funding for accrued leave and employee benefits. Total employee benefits are projected at approximately $148,700 for the upcoming year. Health Insurance: costs are the primary factor driving the higher benefits budget. PERSI retirement contributions have also been included in the budget projections, although there is uncertainty about whether a planned rate increase would be delayed. The budget will be reviewed and adjusted if necessary once updated information becomes available. Operating costs and supplies, with a focus on computer replacement expenses. A budget of approximately $4,000 is initially proposed for next year to account for potential PC replacements. Two computer replacements were completed during the current year. The only remaining potential replacement of one more computer. Because supply expenses are already approaching $2,900 and include computer purchases, the supplies budget may be increased to approximately $3,500 for the current year. Finance Officer Nielson said any opportunity to reduce supply costs would benefit the General Fund. Fuel and oil: budget is projected at approximately $1,700. The department currently operates with one vehicle, a Chevrolet Traverse. The previous vehicle, a Trailblazer, was removed from service. Hired Service: the department has historically budgeted a small amount for hired services, although actual expenditures in this category have been very limited. Current-year hired work expenses total only about $25. Staff noted that they have rarely incurred significant hired work costs. Some hired service expenses are shared among multiple departments. Past charges included costs related to replacement services and recordings, which were likely split between departments. Travel and Training: expenses significant reductions have been made to travel and training costs. Instead of both planners attending the National Planning Conference, Kyle and Planning and Zoning Administrator Parkinson will alternate attendance in future years. Planning and Zoning Administrator Parkinson added that he will be the only employee attending the AICP-related conference, further reducing travel expenses and Kyle will attend the APA Idaho conference for professional development purposes. National planning conferences have become increasingly expensive, with recent attendance costs exceeding $3,000 for a single attendee. Based on the revised travel strategy and reduced conference attendance, staff believe the proposed budget should adequately meet training and travel needs. Planning and Zoning Commission: member compensation is budgeted at approximately $3,600 and is based on the number of meetings held. Commission members receive $25 per meeting, while the Chair and Vice Chair receive $50 per meeting. The budget includes funding for required public notices and publishing costs. Some publication expenses are initiated by the department, while others are initiated by applicants and later reimbursed by those applicants. Software Maintenance: costs are budgeted at approximately $11,900. Discussion focused on a potential new software system that would be shared across multiple departments, including Planning and Building. If the new software is implemented, budget allocations may need to be adjusted to account for Planning's share of the costs. The implementation cost for the new software is expected to exceed $30,000. Staff are still determining how to allocate software costs among departments. Potential allocation methods include distributing costs based on the number of users ("seats") in each department. Preliminary discussion indicated that Building would have approximately eight users, Planning would have three users, and Compliance Officer Natalie Powell will also need to be included in the allocation calculations. Finance Officer Nielson noted that if the Building Department is willing to absorb the implementation costs, that may be preferable because Building operates differently from the General Fund, reducing the financial impact on Planning's budget. Overhead Charges for Shop and GIS (Geographic Information Systems): costs have recently been allocated more aggressively to the Building Department because staff determined that the department is using GIS services more extensively than had previously been reflected in billing. Within the General Fund, GIS costs are budgeted through this department and then allocated to other departments that utilize the service, including Streets, Sanitation, Water, Wastewater, the Building Department, and Planning. Finance Officer Nielson said the department's total proposed budget is approximately $497,000, or just under $500,000. Planning and Zoning Administrator Parkinson raised the need to begin planning financially for the next Comprehensive Plan update. The current plan is approximately four to five years into its lifecycle, and comprehensive updates are typically completed every ten years. He suggested that the department begin setting aside funds gradually over the next several years to build a reserve for the future update rather than facing the entire expense at once. The previous Comprehensive Plan update cost nearly $60,000. The City received a $50,000 grant from the Blue Cross Foundation to help fund the last update, leaving the City responsible for roughly $10,000 of the total cost. Given the uncertainty and long-term nature of the project, a placeholder amount of $70,000 was added to the CIP for both 2032 and 2033 to account for a future Comprehensive Plan update.   Finance Officer Nielson reviewed the Economic Development Budget Report. Salaries FT: the department budget includes funding for two full-time employees. Funds have been set aside for professional certification expenses because Aaron Denney is expected to complete his certification process this fall. Aaron is pursuing the Certified Economic Developer (CEcD) designation and has one remaining examination requirement before earning the certification. The department does not anticipate needing any part-time employees during the upcoming budget year. Because part-time staffing is not expected to be utilized, the part-time salary budget can be reduced to zero, generating a small cost savings. Accrued Leave and Vacation buyout obligations: Employee benefits are projected at approximately $90,000 for the next fiscal year. Changes in benefit costs over recent years are largely attributed to organizational staffing changes, including Communication Specialist Sarah Kennett-Cromwell’s transfer to the Customer Service Department and the removal of a part-time position from the department. Most remaining operating expenses are considered routine and consistent with prior years. Discussion: continuing support for the Maker Space program and agreed to keep funding in the budget. The allocation was reduced slightly to approximately $1,200, which staff felt was adequate. There may be a future reevaluation of Maker Space funding because it was previously connected to the Rexburg Business Development Corporation (RBDC) structure. Economic Development Director Johnson reviewed software expenses and identified Placer.ai as one of the department's largest software costs. The decision was made to remove Placer.ai from the budget for the upcoming year as a cost-saving measure, although it has been a highly valuable economic development tool. Placer.ai uses anonymized location data collected through third-party mobile applications to analyze visitation patterns, consumer behavior, and traffic flows. The software has been instrumental in recruiting businesses to Rexburg by providing data on customer travel patterns, market demand, and retail activity. Staff cited its use in attracting businesses such as Home Depot and other retailers. Lease Interest Expenses: the budget includes approximately $1,500 for lease interest expenses related to the department's website. Due to accounting requirements, the website agreement must be treated as a lease and reported separately. Madison Economic Partners, Inc. (MEPI) reimbursement is budgeted at approximately $10,500. Historically, this amount was closer to $10,000, but actual recent expenses have been slightly higher. MEPI serves as the countywide economic development organization. In addition to managing economic development efforts for the City, department staff also support economic development activities throughout Madison County. Prior to the City's hiring of an Economic Development Director, economic development services were provided through MEPI as a nonprofit organization. When the City assumed responsibility for economic development activities, support for MEPI initially declined. However, neighboring communities and county leaders later requested continued assistance, leading the City to resume its involvement. Economic development efforts through MEPI were reduced during the COVID-19 pandemic as staff focused on other priorities. More recently, county leaders requested that the partnership and related services be reactivated, resulting in renewed budget allocations. Discussion: the budget reflects the elimination of the City's previous $3,000 contribution to the Rexburg Business Development Corporation (RBDC). That funding was removed during the current year and will not continue in the upcoming budget. City Staff were uncertain about the current status of RBDC activities and indicated they had not received recent updates regarding the organization's plans. Lease principal payments associated with the website are budgeted separately from lease interest in accordance with governmental accounting standards (GASB requirements). Hired Work: budget remains difficult to predict because expenditures vary significantly from year to year. A budget of approximately $2,000 was considered appropriate. A current project involving a college class that is receiving some compensation for work performed. Because of this anticipated expense, the department agreed it would be prudent to leave the hired work funding in place for the current year. Website-related lease expenses, ongoing support for countywide economic development efforts through MEPI, the removal of RBDC funding, and maintaining a modest budget for contracted services and project assistance. Insurance: expenses were reviewed before moving into the travel and training budget. Travel and Training costs were higher in the previous year because Aaron attended multiple certification and professional development sessions. The travel and training budget has been reduced to approximately $4,500, which is considered a more typical annual amount. At that funding level, the budget effectively provides about $2,250 per employee for training and professional development. Dues and Memberships: budget was increased to approximately $700. The increase is primarily due to membership in the Idaho Energy Coalition, which was requested by the Governor's Office. The annual membership fee for the Idaho Energy Coalition is approximately $500. City Staff had previously committed to joining the organization and authorized the coalition to send an invoice for the membership dues. Power for the community billboard and computer software maintenance. The power expense is associated with the Chamber of Commerce billboard. The City has historically paid this cost, although staff were uncertain about the exact cost-sharing arrangement and believed the City may be covering all of the electrical expense. Discussion regarding a separate $12,000 lease expense. Finance Officer Nielson clarified that this amount is for the department's website software. Due to Governmental Accounting Standards Board (GASB) requirements, the website agreement must be treated as a lease because it is a multi-year contract rather than a year-to-year service agreement. The computer program and software maintenance budget covers ongoing software subscriptions and technology services, including products such as Microsoft software, Adobe subscriptions, and other computer-related applications. Software maintenance expenses were significantly reduced for the upcoming budget year. The primary reason for the reduction is the removal of the Placer.ai subscription, which had been one of the department's most expensive software tools. Although current-year software expenditures appear high—approximately $29,000—the majority of those costs were attributable to the Placer.ai subscription that was paid during the current budget cycle. The budget adjustment was confirmed, reducing the computer program and software maintenance line item from $14,000 to $12,000. Discussion: on the proposed wayfinding sign project, which has been under development for several years. The project involves replacing outdated directional signs located at major entrances to the city and along key corridors such as Main Street and 2nd East. BYU–Idaho has committed to contributing approximately $20,000 toward the project. The lowest bid received for the sign installation is approximately $35,000, leaving the City responsible for the remaining cost. The proposed sign structures will be approximately 16 feet tall and will direct visitors to major destinations such as BYU–Idaho, downtown Rexburg, the Tabernacle, Riverside Park, the pool, and other community attractions. The design allows individual sign panels to be replaced as destinations or information change, eliminating the need to replace an entire sign structure in the future. Discussion regarding ticket sales and revenue performance for the upcoming concert, noting that sales have been averaging more than $1,000 per day and occasionally reaching $2,000 per day. At the time of the discussion, approximately 1,300 tickets had been sold, with an additional 114 tickets on hold. If those pending purchases are completed, total ticket sales would approach 1,400 tickets. Concert revenue had reached approximately $66,000–$67,000. General admission tickets account for the largest share of sales, with approximately 867 bleacher seats sold. Higher-priced ticket options have performed particularly well. More than 200 VIP standing tickets near the stage had already been sold, and the premium "bucket seats," priced at approximately $100 each, sold out first. Based on current assumptions, city staff estimated the event would need approximately 6,500 attendees to reach its break-even target, although the exact number depends on the final average ticket price. Revenue projections were estimated between approximately $230,000 and $250,000.   Finance Officer Nielson reviewed the GIS Fund 29 Budget Report. Attendees introduced themselves at the start of the meeting. Participants included: Lori Hicks, Madison County Clerk Cole Hibbard (GIS Department Head) Alicia Tietjen, City Council Member Sean Boice, Madison County Assessor Bill Riggins, City Council Member J erry Merrill, Mayor Matt Nielson, City Finance Director Discussion regarding an overview of the GIS program and its funding structure. The City and Madison County operate GIS as a joint venture under a formal intergovernmental agreement that was last reviewed relatively recently and dates to approximately 2018. The agreement automatically continues from year to year unless either party proposes changes, although staff noted that updates could be considered if necessary. GIS Revenues: are relatively small and are first applied against operating expenses. After revenues are deducted, the remaining net operating cost is divided equally between Madison County and the City of Rexburg. Madison County pays its share through a direct contribution to the GIS operation. City's share is allocated internally to departments that utilize GIS services, such as Planning, Building, Public Works, and other major users. These departmental allocations are treated as overhead expenses within each department's budget. Finance Officer Nielson emphasized that the presented budget figures are recommendations and that this meeting is the appropriate time to discuss and recommend any changes before the budget proceeds to the City Council and County Commission for final approval. For the upcoming fiscal year, Madison County's projected contribution is approximately $307,500. Historical contributions have steadily increased: Approximately $260,000–$270,000 in 2024. Approximately $284,000 projected for the current year. Approximately $307,500 proposed for next year. The increase reflects the continued growth of GIS operations and associated costs over time. Combined revenues from Madison County, City departmental allocations, and miscellaneous income are projected at approximately $615,700 for the upcoming year, which is intended to fully offset GIS operating expenses. Salary FT: expenses are budgeted at approximately $324,300. The GIS department currently consists of four full-time employees, a staffing level that has remained unchanged since 2021. The proposed salary budget includes the City's 2.73% Cost of Living Adjustment (COLA). Addition to the COLA, some employees may receive merit increases based on performance and eligibility. Because merit increases occur at different times throughout the year, their budget impact varies depending on when they take effect. Overall, salary expenses are projected to increase by approximately 3% from the previous year. The personnel costs remain the largest component of the GIS budget and are the primary driver of the overall budget increase. Part Time Employes: the GIS department does not anticipate needing part-time employees, and the part-time salary budget will remain at zero. The budget includes funding for accrued leave buyouts, which primarily cover the City's program allowing employees to cash out a portion of unused vacation leave at year-end. Employee benefits are currently budgeted at approximately $170,000. Historical benefit costs were approximately $160,000 and $165,000 in the previous two years, suggesting that the current projection may not fully capture the upcoming increase. Worker’s Compensation: the GIS department has an excellent safety record and receives a small annual workers' compensation safety credit of approximately $100. The budget includes funding for the City's wellness and recreation program, which allows employees and their families to participate in City recreation programs and activities. This expense totals approximately $1,000 annually. Shared office supplies are budgeted separately and cover common items such as paper, pens, and other consumables that employee’s access through centralized City purchasing. The department also maintains a dedicated GIS supplies budget of approximately $3,000. GIS supply expenditures are primarily used for computer equipment and technology purchases rather than traditional office supplies. Computer replacements are managed through a planned rotation schedule, with each employee receiving a replacement approximately every five years. Janitorial Supplies: the GIS budget includes charges for janitorial supplies and services. City provides cleaning supplies, and a contracted janitorial service cleans the office approximately five days per week. The department does not maintain a vehicle, so no fuel and oil expenses are budgeted. No funding is currently planned for small tools or equipment. These purchases typically involve specialized GPS or GIS-related field equipment, but no such needs are anticipated this year. Hired Work: expenses are expected to remain minimal. Insurance costs are under review and may ultimately be lower than the current budget estimate of approximately $9,300 due to favorable insurance results. Travel and training expenses are budgeted at approximately $9,000, an amount staff agreed is appropriate. The department's training strategy is to provide professional development opportunities for all four employees. Typically, two employees attend a conference in the spring, and two employees attend a conference in the summer, ensuring that each staff member receives at least one training opportunity annually. One of the primary conferences attended is the annual Esri GIS Conference in San Diego, which is considered one of the most important professional events for GIS professionals. Additional training opportunities may include local Idaho conferences or other specialized GIS-related events. Telephone and Internet: The GIS budget includes standard expenses for telephone and internet services, along with building and grounds maintenance. Building and ground repairs are budgeted at approximately $4,000. However, departments are only charged for actual repair costs incurred during the year. Actual building repair expenses have been minimal, with only about $332 spent so far during the current fiscal year. Equipment Repairs: are budgeted at approximately $500 and following the same approach—funds are available if needed, but only actual costs are charged. Computer software maintenance remains one of the department's largest operating expenses, with approximately $62,000 budgeted for the upcoming year. City Staff reviewed the software budget and agreed that $62,000 should adequately cover anticipated expenses for the coming fiscal year. The largest software expenses are Esri and VertiGIS, the department's two primary GIS platforms. VertiGIS accounts for approximately $15,000–$18,000 annually, while Esri costs approximately $37,000 annually. Additional software costs include smaller subscriptions and technology services such as Microsoft products, timekeeping software, and other operational systems. The department currently operates under a three-year Esri contract, which helps provide cost stability through the current budget cycle. Finance Officer Nielson reviewed a new budget line item of overhead allocation charge to the GIS operation. Departments and operations with funding sources outside the General Fund are typically charged a portion of the City's administrative overhead costs. The City's annual overhead expenses exceed $3 million and include services such as: Finance and accounting Payroll administration Human Resources Legal services Information Technology (IT) Other centralized administrative support functions Although GIS performs some of its own technical support and IT-related work, he noted that the department still receives support from City administrative services. The City's overhead allocation methodology distributes costs based on the operating expenses of departments and programs receiving those services. When GIS was run through the City's allocation formula, the calculated share of overhead costs was approximately $80,000 annually. Rather than charging the full calculated amount, Finance Officer Nielson proposed charging only 25% of the allocated overhead, or approximately $20,000 per year. Finance Officer Nielson emphasized that the proposal is intended to recover a portion of the actual administrative costs incurred by the General Fund rather than fully charging GIS for all support services received. The discussion concluded with Finance seeking feedback from GIS and County representatives regarding the proposed overhead allocation and its potential impact on the joint GIS operation. County Representatives acknowledged the City's concerns but emphasized that Madison County is also experiencing rising costs across its operations. The County highlighted recent investments in aerial imagery and mapping technology, including a new one-inch-pixel aerial flight program that provides significantly higher-resolution imagery. Enhanced imagery allows users to identify infrastructure details such as sewer features, roadway conditions, and other assets with much greater precision than previous flights. County officials noted that these aerial flights represent a substantial and growing expense for the County. Finance Officer Nielson responded that the city already contributes to the cost of aerial photography through GIS-related charges paid by City departments. Recent City payments included approximately: $13,700 for a recent aerial flight invoice. Nearly $50,000 in catch-up payments covering aerial flight costs from 2022 through 2025 that had not previously been billed. Finance Officer Nielson explained that the primary concern from the City's perspective is that the General Fund continues to absorb significant administrative costs, including finance, payroll, HR, legal, auditing, and IT support—without receiving reimbursement from the GIS operation. County officials noted that the County also incurs administrative, and support costs related to GIS and argued that both organizations contribute resources to the partnership. A County representative suggested deferring implementation of the proposed overhead charge for another year and revisiting the issue during the next budget cycle. Finance Officer Nielson indicated that the proposed overhead allocation would remain in the City's budget recommendations, while further discussions with County leadership would likely occur before final budget approval. Discussion continued around the financial challenges facing both the City and Madison County, particularly related to transportation funding. Finance Officer Nielson staff noted that roadway funding has been significantly reduced across many jurisdictions, affecting both City and County budgets. County representatives confirmed that Madison County's Road and Bridge program is facing an estimated revenue reduction of approximately $1.6 million. These reductions have placed significant strain on street maintenance and infrastructure programs. Finance Officer Nielson noted that a road and bridge funding source that previously provided approximately $900,000 annually to the city has been substantially reduced over time. He expressed concern that declining transportation revenues are contributing to deteriorating street conditions and limiting the City's ability to maintain infrastructure.  Adjournment APPROVED: ________________________________ Jerry Merrill, Mayor Attest: ________________________________ Marianna Gonzalez, City Deputy Clerk