CITY CLERK’S NOTE: A notice of the public meeting was posted on the bulletin board in the City Office and was displayed on the City’s Cable TV access channel. A notice was also given to the Advertiser Courier and e-mailed to KWWR Radio, KWRE Radio and KLPW Radio. The notice stated that there would be a Budget Workshop on May 17, 2021 at 7:00 p.m. The notice also stated that the meeting would be held in the City Hall Board of Aldermen room, 1902 Jefferson Street, Hermann, MO. 65041. A copy of the notice is on file in the City Clerk’s office. Notice posted May 13, 2019 at 4:20 p.m.

BUDGET WORKSHOP

May 17, 2021

Mayor Cox called for a Budget Workshop to be held in the meeting room, City Hall, 1902 Jefferson Street, Hermann, Missouri, on May 17, 2021 at 7:00 p.m.

Mayor Cox called the meeting to order with the following Aldermen present: David Faerber, Jim Schirmer, Derek LeRoy and Susan Lenger. City Administrator/City Clerk Patricia Heaney, Tourism/Eco. Dvlp. Director Tammy Bruckerhoff, Police Chief Marlon Walker, Street Foreman Todd Lensing, Gas/Water/Sewer Foreman Darren Rector, Electric Foreman Jesse Geltz, Park Foreman Ben LaBoube, former Mayor Robert Koerber and Tourism Commission President Mary Kunstmann were also present. .

City Admin. Heaney gave an overview of the Budget Summary Estimate spreadsheet. There was discussion about carry over balances, anticipated revenues, and requested capital expenses for each department. This first draft of the budget was presented with all funds in the black.

MAJOR TOPICS OF DISCUSSION

GENERAL FUND – The General Fund balance is much healthier this year due to the 8% increase in sales tax, moving the remaining $18,000 of the Tourism Director’s salary to the Lodging Fund, the Arts Council not requesting any funds and the conservative budgeting last year.

POLICE/DISPATCH DEPARTMENT – No capital requests this year. The 2nd of five lease payments will be made on the vehicle purchased this year. This will be the last $35,000 yearly payment on the radio equipment. Next large expense will be to replace the aging tower. The Aldermen approved raising the Dispatcher base rate by $1.00.

ARTS COUNCIL – Due to COVID all their events this year were cancelled; therefore, they did not request any funds for the new budget year.

STREETS – Street Foreman Todd Lensing presented the street replacement projects budgeted from the 7/8 cent sales tax. The Aldermen accepted them as presented. Clerk’s note: The next day Todd asked for another block on W. 7th Street to be added. The Aldermen agreed

ELECTRIC – The polar vortex increased the March power bill by $338,000. Capital projects and equipment were explained.

WATER – The See Tal booster pump will be approximately $100,000. The American Rescue Plan funds of $431,000 can be used for water, wastewater and storm water infrastructure. It will be received in two equal payments, of which the first should be received this summer.

WATEWATER – The bond rate covenant requires a rate increase of $2.60/connection. The Aldermen agreed to add $1.50 to the base and the remaining $1.10 to the rate. The ordinance will need to be approved in June.

CEMETERY – The $5,000 budgeted for 20/21 was transferred to the Cemetery fund this month. Another $5,000 was budgeted for 21/22.

PARK – The Park has also benefited from the increase in sales tax, and camping fees have increased $15,000 year-to-date. Capital projects were approved as presented. The concession stand deck was not included this year, due to high cost of building materials. It has recently been discovered that one of the ball field light poles has a hollow. These are old and need replacing, but it will be expensive. These light and pole replacements are not included in this budget.

POOL -- $10,000 has been earmarked and moved to a cash line for pool improvement funds for the 20/21 budget, and this amount was also budgeted for 21/22.

May 17, 2020

BUDGET WORKSHOP CONTINUED--------------------------------------------------------------------Page 2

AIRPORT - We are still supposed to receive the 90/10 state grant for a new apron, but the state does not have the funds and cannot tell us when they will become available. Budget amendments will need to be made if the grant comes through.

LODGING TAX – The largest expenditure will be a new website costing approximately $83,000. Two part-time Tourism Services Assistants were approved. Lodging tax increased 16% over last fiscal year.

NATURAL GAS – Discussion was had regarding the polar vortex price gauging that resulted in an additional $562,000 on our gas purchase bill. The Aldermen tentatively agreed that recouping the money was necessary. They thought adding it to the rate over the next three years was the best option. This will be placed on the next Board of Aldermen agenda for further discussion.

EMPLOYEE RAISES - A 3% across the board increase was built into the budget.

Mayor Cox announced the Closed Session on the agenda was not needed.

No other business to come before the Aldermen, the meeting was adjourned around 9:00 p.m.

The next scheduled regular Board of Aldermen meeting will be held on May 24, 2021.