►
Description
Agenda Items include a Tax Presentation.
A
Good
evening,
I
think
I'll
get
started
here,
I'm
talking
to
the
back
of
heads,
but
only
momentarily
I'll
be
moving
up
front
in
a
moment,
but
just
get
through
some
of
the
business
here,
I'd
like
to
call
to
order
the
City
Council
meeting
of
Tuesday
November
27th
2018.
This
is
a
special
meeting
and
please
rise
and
join
me
in
the
Pledge
of
Allegiance.
C
C
C
B
C
C
A
You
the
first
item
on
the
agenda,
is
the
public
comment
period
and
this
is
a
time
for
people
to
come
forward
if
they
have
something
they
want
to
talk
about.
That
is
not
on
the
agenda.
You
can
do
that
here.
Is
there
anyone
that
wants
to
do
that
see.
None
we'll
move
on.
The
second
item
on
the
agenda
is
approval
of
the
agenda.
Is
there
a
motion
and
second
for
approval,
so.
D
A
I
would
like
to
thank
everyone
for
coming.
This
is
such
a
great
turnout,
and
that
tells
me
this
is
an
engaged
community
when
people
come
out
of
their
warm
cozy
homes
on
a
cold
winter
night
to
come,
watch
a
presentation
about
taxes-
that's
remarkable,
so
thank
you
for
being
here
and
I
also
would
like
to
thank
councilman
Don
Roby.
This
was
his
idea
and
I
think
it's
a
great
idea
just
to
give
the
public
an
opportunity
to
hear
about
how
we
collect
our
taxes
and
so
on
what
we
do
with
them.
A
This
is
an
informational
meeting
and
it
was
a
great
plan.
I
think
to
do
this
I'd
like
to
do
this
periodically
too,
with
different
topics
and
also
Kristen
Bob,
seeing
the
Finance,
Officer,
Kristen
and
Don
did
a
lot
of
work
to
put
all
the
details
together
and
the
three
of
us
will
be
jointly
making
this
presentation
I'd
also
like
to
thank
the
assistant,
finance
officer,
Christine
kromm.
She
did
a
lot
of
work
to
to
put
this
together.
So
thanks,
everyone
for
coming
and.
A
Oh
gosh
you're
done
someone's
saving
power
by
turning
the
clicker
off
good
thing,
so
the
agenda
tonight.
The
first
thing
is
the
objective
which,
as
I
said,
is
just
to
give
the
public
an
idea
of
what
we're
doing.
Transparency
is
a
very
important
thing
to
all
of
us
here
and
we
want
you
to
know
that
your
elected
officials,
the
mayor
and
the
council
and
the
city
staff
are
all
working
to
the
betterment
of
the
community,
and
so
this
is
just
to
give
you
an
opportunity
to
see
that
and
ask
questions.
A
A
We'll
be
talking
about
the
1st,
2nd
and
3rd
penny
sales
taxes
we'll
be
talking
about
sales,
tax,
history,
we're
talking
about
property
tax
a
little
bit
and
we'll
be
talking
about
our
funds,
the
general
fund,
the
capital
improvement
fund
and
the
bed
board
and
booze
rbbb
fun
well
also
talked
a
little
bit
about
our
budget
considerations
and
the
health
of
the
city
is
just
intimately
tied
with
sales,
tax
revenue
and
actually
the
sales
tax
revenue.
Both
is
the
cause
and
the
result
of
it.
A
So
let
me
explain
that
a
little
bit,
if
you
have
an
economically
healthy
community,
people,
are
developing
they're
spending
their
money.
That
money
is
coming
back
into.
The
economy
comes
back
into
our
coffers,
so
we
can
offer
a
higher
level
of
service
and
we
can
offer
more
amenities
and
that
causes
people
to
spend
more
money.
So
it's
an
upward
spiral
that
can
also
be
a
downward
spiral,
so
need
to
pay
attention
to
that.
A
We
in
watertown
are
very
fortunate
that
we
have
an
economically
sound
community
I,
don't
want
anyone
to
get
the
idea
that
we're
doing
this
presentation
to
unveil
some
bad
news
about
our
economic
health.
We
are
very
economically
healthy
in
watertown
and
that's
due
to
the
efforts
and
planning
and
strategy
that
goes
back
many
many
many
years.
The
setup
that
we
have
here
is
remarkable.
A
A
So
today's
presentation-
we're
gonna,
be
talking
about
these
things:
sales,
tax
revenue,
property
taxes,
general
fund
capital,
improvement
fund
and
the
BBB
fund.
What
we
are
not
going
to
be
talking
about
are
the
enterprise
funds,
which
are
the
funds
where
we
keep
the
money
we
get
for
the
services
that
we
provide,
like
the
sewer,
solid
waste,
electric
water,
gas
and
air
port.
We're
also
not
going
to
be
talking
about
our
special
revenue
funds,
that's
for
a
different
day,
and
we
aren't
talking
about
any
one
specific
project.
That's
not
our
intention.
A
We're
also
not
going
to
be
talking
about
making
changes
to
the
way
we're
doing
things
tonight
is
devoted
just
for
information
about
how
we
do
things
now
and
hopefully,
it'll
lay
the
groundwork
for
future
conversations.
When
we
do
talk
about
making
changes,
if
we
want
so
oops
I
will
hand
it
over
to
Don.
E
Anybody
hear
this:
okay,
all
right,
Thank,
You
mayor.
If
you
look
at
Watertown
as
a
business,
we're
about
a
40
million
dollar
a
year
enterprise
and
tonight,
as
Sara
said,
what
we
are
going
to
aren't
are
not
going
to
talk
about
we're
going
to
talk
about
half
of
that
business,
and
that
involves
mainly
our
sales
tax
revenue.
A
little
bit
about
property
taxes.
E
Then
the
funds
with
the
I
should
say
the
funds
that
get
fed
by
those
taxes,
as
you
may
or
may
not
know,
we
have
three
pennies
of
sales
tax
in
Watertown
when
I
ran
for
Council
five
years
ago,
I
put
together
a
presentation
which
I
found
a
lot
of
people
really
didn't
want
to
listen
to
when
you're
running
for
office.
But
I
did
give
that
presentation
three
times
and
what
I
found
was
a
lot
of
people
were
like
me.
E
They
kind
of
knew
what
we
had
for
taxes,
I
kind
of
got
it
I
kind
of
didn't
they
weren't
quite
sure,
and
that
was
kind
of
the
impetus
of
really
wanting
to
get
into
some
of
this.
So
we
hope
you
ask
a
lot
of
questions.
We're
going
to
take
questions
at
the
end,
but
if
something
pops
up
the
middle,
we
glad
to
address
that
question
on
the
spot.
So
we
have
free
pennies
of
tax
here
in
Watertown.
E
The
first
and
second
penny
are
subject
to
anything:
that's
taxed
by
the
state
of
South
Dakota,
so
pretty
much
all
merchandise,
groceries,
activities
and
services
are
charged
to
first
and
second
penny.
The
third
penny
has
two
more
to
do
with
lodging
and
dining
if
you're
going
out
on
the
town,
you'll
pay
that
third
penny
of
tax,
so
those
are
the
three
we're
going
to
break
those
apart
individually,
but
just
to
give
you
a
snapshot
in
totality
of
what
happens
when
we
do
tax.
E
If
you
go
downtown
to
buy
some
merchandise,
you're
gonna
buy
a
new
shirt
or
new
pair
of
shoes.
You're
gonna
pay
the
four
and
a
half
percent
state
tax
that
used
to
be
4%,
if
you
remember,
but
we
had
in
the
election
there
an
event
that
went
to
the
vote
of
the
people
and
we
voted
a
half
a
cent
raise
in
that
tax.
For
the
teacher
funding
with
then
we
have
our
first
penny.
E
Our
second
penny:
our
third
penny
there's
also
a
tourism
tax
out
there,
but
if
you
buy
something
downtown,
you're
gonna
see
those
first,
three
taxes
come
into
place.
So,
if
you
look
at
your
receipt
next
time,
you're
downtown
or
out
one
of
the
stores
shopping,
locally,
you're
gonna
see
a
six
and
a
half
percent
tax
on
that
purchase.
E
If
you
go
out
and
have
dinner,
you're
gonna
see
that
same
six
and
a
half
percent
except
you're
gonna
have
that
third
penny,
which
is
the
infamous
bed
booze
and
bored
tax.
So
we
all
hear
about
the
BBB
tax
if
you're
gonna
have
a
drink
or
if
you're
going
to
go
out
to
dinner,
you'll
get
charged
that
extra
penny.
So
your
taxes
on
that
purchase
are
going
to
be
about
seven
and
a
half
percent
and
then
lastly,
the
last
example
is:
if
you're
going
to
go
out
to
an
event.
E
You
know
tourism
is
the
second
largest
industry
in
South,
Dakota
being
only
behind
agriculture
and
the
state
Bill's
out
about
over
two
billion
dollars.
We
get
for
sales
taxes,
one
of
the
taxes
they
have.
In
addition
to
the
standard,
four
and
a
half
is
that
tourism
tax,
so,
for
instance,
if
you
go
to
the
zoo
in
Watertown,
you're
gonna
pay
the
state
tax
of
four
and
a
half
all
three
pennies
of
city
tax,
and
in
addition,
for
that
admission,
there's
another
percent
and
a
half
for
the
state
tourism
tax.
E
So
that's
kind
of
a
full
picture.
Let's
break
those
apart
one
by
one:
look
at
some
of
the
history
of
those
three
pennies,
so
quick
review!
Anything
is
subject
to
the
sales
tax,
most
merchandise
purchases.
Are
you
going
to
get
that
first,
penny?
If
you
look
at
a
fifteen
year
period
and
we
broke
this
out
back
to
2003
broke
it
into
three
segments.
E
We
that
fund
grew
or
that
tax
receipts
grew
at
about
4.8%
on
average
for
that
five
year
period,
the
green
bars
in
the
middle
that
grew
from
2008
to
2012.
At
three
point,
one
two
percent
and
from
2013
to
2017
it
grew
to
one
point:
seven,
six
percent,
so
we
expect
some
volatility
in
sales
taxes,
because
we
can't
necessarily
control
that
we
can
do
things
to
try
and
enhance
it
and
get
more
sales
tax
revenue,
but
the
work
I'm
at
the
mercy
of
what's
going
on
in
the
economy
a
little
bit.
E
The
only
thing
I
would
point
out
there
is
that
growth
rate
is
decreasing.
Now,
that's
not
a
fire
alarm.
That's
not
a
red
flag,
it's
more
of
kind
of
a
light,
pastel
yellow
flag,
our
growth
rates,
we're
still
growing
that
tax,
but
it's
growing
at
a
slower
rate.
Sales
taxes
are
cyclical.
You
can
expect
them
to
go
up
and
go
down,
but
obviously
we
want
to
watch
that
trend.
We
want
that
trend
going
up
so
that
the
most
recent
trend
is
it's
growing,
just
not
as
much
as
we
like
for
budgetary
purposes.
E
What
we
do
downtown
is
we
usually
look
at
about
2%
a
year
growth
in
our
sales
tax.
So
that's
just
a
little
bit
below
what
we
typically
budget
at
now.
The
second
penny
again
subject
to
the
same
things
of
the
first
panic:
those
two
pennies
mirror
each
other,
except
if
you
go
back
in
history,
so
starting
about
2009,
they
started
mirroring
each
other.
So
there's
a
little
bit
of
a
discrepancy
in
the
two
charts.
E
I
want
to
point
that
out,
but
about
2009
they
did
mirror
those
up
and
that's
the
way
it
will
be
going
for
the
foreseeable
future.
But
we
have
the
same
data
here
million
dollars
at
a
time
going
up
6.9%
in
the
blue
three
point,
three
one
percent
in
the
green
and
and
that
matches
between
13
and
17
at
one
point:
seven:
six
percent.
So
again,
second,
penny
now
mirrors
the
first
penny
still
going
up,
just
not
as
much
as
we
like
it
to
Don.
C
E
There
were
some
other
things
the
way
they
account
for
that
back.
You
know
ten
years
ago
a
little
bit
differently.
They
did
tax
it
always
as
evenly
as
we
do
now,
good
all
right.
So
the
third
penny
again
lodging
dining
entertainment
type
things.
Our
scale
has
changed
here.
Our
scale,
isn't
that
a
million
dollars
a
tick.
Now
it's
up
at
a
hundred
thousand
dollars
a
tick
but
same
analysis
2003
to
2007.
It
grew
at
seven
point:
one
percent,
that's
pretty
healthy!
That's
a
good
looking
chart
in
the
blue
times
are
pretty
good
back.
E
Then,
look
at
2008
to
2012.
It's
growing
at
one
point:
seven,
seven
percent,
so
a
little
bit
of
a
dip,
but
in
the
last
five
year
period.
That's
about
four
point:
seven,
eight
percent,
our
BBB
tax.
Actually,
this
year
we're
gonna
finished
about
eight
hundred
and
eighty
thousand
last
year,
we're
gonna
exceed
that
this
year,
we'll
get
over
nine
hundred
thousand
dollars
this
year
and
I
will
say,
there's
some
neat
things
going
on
in
town,
we've
got
I
think
a
little
better
coordination
going
on
with
some
of
our
organizations.
E
Cvb's
doing
some
really
neat
things
behind
the
scenes:
a
lot
of
data-driven
decisions,
so
we
hope
to
see
that
improve
and
we're
confident
that
it
will
so
this
chart
combines
all
three.
When
you
combine
all
three,
you
see
a
little
more
volatility
volatility
going
up
and
down.
But
again
what
I'm
going
to
point
out
is
we're
still
growing
in
this
case,
when
you
put
it
all
three
together,
it's
at
one
point:
nine
one
percent,
the
last
five
years:
that's
okay,
we'd
like
to
see
it
more,
but
the
trend
is
this
decreasing?
E
So
when
you
look
back
to
what
I
example,
I
gave
earlier
how
your
taxes
are
purchased,
there's
there's
three
pennies.
You
can
see
how
they're
laid
out
and
you
see
all
the
state
taxes
come
in,
but
these
three
pennies
do
drive
three
of
our
major
funds
that
we
work
with,
which
Christian
is
going
to
talk
about
here
in
a
minute
we
do
want
to
talk
a
little
bit
about
property
taxes,
I
think
property.
E
Taxes
are
misunderstood:
we
do
get
revenue
from
property
taxes
on
city
properties
and
here's
kind
of
a
general
breakdown
the
school
actually
when
they
levy
their
taxes
on
property.
They
take
about
58
percent
of
the
total
taxed
in
watertown
and
again
this
is
just
city,
not
county.
If
you
look
at
the
county,
they
get
twenty
four
percent
of
that,
because
a
CD
of
course
is
part
of
Coddington
County.
You
look
at
that
blue
piece
of
the
chart.
E
The
blue
piece
of
pie
over
there,
that's
about
19
percent,
so
the
city
does
get
revenue
from
property
taxes.
It
was
about
three
point
three
million
dollars
last
year.
Now
you
contrast
that
to
how
much
we
got
into
the
first
second
and
third
penny.
So
this
is
three
point:
three
four
million.
We
got
about
fifteen
point
two
fifteen
point
three
last
year
from
our
three
penny
sales
tax,
so
it's
significant
not
as
significant
as
our
sales
tax
revenue,
but
nonetheless
it
does
add
to
the
coffers.
E
E
Those
and
Brookings
just
beats
us,
but,
as
you
can
see,
other
cities
that
we
compare
ourselves
against
they're
charging
quite
a
bit
and
comers
of
mill
levies
for
property
taxes,
I,
don't
think
that's
very
well
understood
in
Watertown
I
mean
nobody
likes
to
pay
taxes,
but
in
terms
of
what
we
pay
compared
to
others.
That's
pretty
competitive
and
one
reason
that
is
is
we
have
good
sales
tax
revenue.
E
As
long
as
we
have
a
healthy
sales
tax
revenue,
we
don't
have
to
go
back
and
look
for
ways
to
increase
our
property
taxes
and
by
the
way,
the
state
really
dictates
that
we
can
only
do
so
much
in
raising
property
taxes,
that's
covered
by
the
state.
If
an
example
community
wants
to
go
outside
that,
then
they
do
what's
called
an
opt-out
and
you've
probably
heard
that
phrase
before
the
city.
Sioux
Falls
just
did
a
big
opt-out
to
finance
some
of
their
new
high
schools
at
mana
belt,
and
we
have
not
done
that
here.
E
So
we
have
a
very
competitive
property
tax
situation.
It
does
play
into
and
does
fund
a
lot
of
our
doings
in
the
city,
so
property
taxes,
as
you
would
expect
property
tends
to
be
pretty
stable.
It's
a
lot
more
stable
than
would
be
again
our
sales
tax
revenue.
So
if
you
look
at
the
last
15
years
and
you
can
see
the
corresponding
growth
rates-
it's
pretty
steady
now
you
can
look
at
that
and
say
gee.
My
taxes
keep
going
up.
Well,
they
do
go
up
a
little
bit
most
years,
but
really
what
affects
that
change?
E
The
most
is
we're
adding
new
properties
to
the
tax
roll.
So
when
somebody
builds
a
new
house
or
we
add
a
new
business
or
build
a
new
building,
our
property
tax
base
increases.
Therefore
we're
going
to
collect
more
property
taxes,
but
that's
a
pretty
good
story
for
us.
It's
it
does
generate
revenue
from
that
helps
operate
the
city,
but
it's
very
competitive
throughout
the
state.
E
I
wanted
to
make
a
point
on
compound
interest.
It's
kind
of
a
simple
concept,
but
compound
interest
has
been
described
as
the
most
powerful
force
in
the
universe.
That's
accredited
to
Albert,
Einstein
and
I've
researched.
That
and
I'm
not
sure,
that's
exactly
right
there.
There
there's
questions
about
that.
But
when
you
talk
about
compound
interest,
you
think
about
when
you're
doing
a
savings
account,
you
put
money
in
the
bank
if
you're
getting
a
CD.
What
have
you
every
year,
you're
getting
interest
on
your
interest?
E
In
other
words,
it's
compounding
so
in
a
very
simple
example:
if
I
have
$100
at
5%
at
the
end
of
year,
one
I
have
one
hundred
and
five
dollars,
but
I
start
beginning
of
year,
two
I
start
with
one
hundred
and
five
I.
Don't
go
back,
200,
I
compound
and
again
get
interest
on
my
interest,
so
I
wanted
to
make
that
concept
at
least
part
of
the
conversation.
E
Because
if
you
look
at
that
from
an
extensive
expense
standpoint,
then
it
kind
of
makes
you
think
a
little
bit
because
really
what's
happening
in
some
cases
is
we're
having
some
of
our
expenses
compound
each
year.
We
can't
compound
our
sales
tax
revenue.
It
goes
up.
It
goes
down,
but
there
are
certain
expenses
that
never
go
down:
healthcare
costs,
personnel
costs.
Those
things
tend
to
go
up
so
compound
interest
is
something
that's
your
friend.
E
If
it's
revenue
coming
in,
it's,
not
your
friend,
if
it's
expenses
going
out
and
I
wanted
to
give
you
an
example
of
what
happens
when
we
have
a
negative
year,
so
I
got
a
lot
of
lot
of
things
on
this
chart,
so
bear
with
me.
This
example:
I've
got
four
years
going
across
the
bottom
I'm
going
to
use
an
example
of
a
hundred
dollars.
E
So
it's
dollars
in
increments
of
ten
going
south
to
north
if
I
start
out
year,
one
with
a
hundred
dollars
and
I
increase
that
at
ten
percent
a
year
I
end
up
going
to
110,
121
133,
so
I'm
compounding
my
growth
because
again
I'm
getting
interest
on
my
interest
flip
that
over,
if
you're,
if
that's
a
tax,
if
the
first
penny
sales
tax,
if
it's
going
up
every
year,
it
works
great.
But
what
happens
if
you
have
a
down
year
so
for
this
example
I
again
in
the
yellow
start
out
at
$100?
E
But
let's
say
it
goes
down:
10%
I'm
down
to
$90
and
then
I
pick
back
up
my
10%
of
your
growth
from
that
point
forward:
you'll
never
catch
up,
and
not
only
will
you
not
catch
up.
They'll
actually
grow
apart,
because
you're
compounding
on
a
smaller
number.
So
when
you
have
a
down
year,
you
can't
just
keep
growing
at
the
expected
rate.
You've
got
to
make
up
for
it
either
the
next
year
or
in
several
subsequent
years.
The
third
example
I'm
going
to
show
you
same
starting
point
in
the
green.
It's
a
hundred
dollars.
E
It
goes
down
to
90
the
first
year
if
I
want
to
catch
back
up
in
that
first
year
after
my
down
year,
I
have
to
get
a
return
of
thirty-four
percent.
I
have
to
more
than
tripled
my
return
so
again
back
to
these
two
years,
I'm
down
to
90,
to
get
back
up
to
121
and
get
back
on
course.
I've
got
to
have
an
increase
of
like
34
percent.
E
That's
a
big
number!
If
you
put
that
in
the
context
of
a
sales
tax,
our
first
penny,
we
typically
grow
about
two
percent
a
year.
If
we
lose
2%
on
a
particular
year,
we
have
to
get
about
6.2
percent
growth
the
following
year,
just
to
get
back
on
track
and
again
that's
a
simple
but
important
concept.
Because
again,
we've
got
a
lot
of
our
expenses
are
compounding
over
time
and
we
don't
always
get
the
advantage
of
compounding
when
you're
revenues
going
up
and
down.
E
E
E
But
if
you
watched
any
of
our
budget
means
which
I'm
sure
all
of
you
saw
every
one
of
those
meetings
last
time
we
had
some
talk
about,
maybe
just
being
cautious
a
little
bit,
not
because
we're
in
trouble,
but
because
we
don't
ever
want
to
get
in
trouble
when
you
look
at
municipalities
have
gotten
in
trouble
time.
You
saw
the
statistics
since
2010
61
municipalities
across
the
country
has
gone
bankrupt,
so
city
a
County.
E
It
went
bankrupt
that
happened
because
they
weren't
looking
down
the
road
when
they
start
seeing
trends
that
working
that
we're
working
against
them.
They
didn't
worry
about.
They
just
looked
right.
What's
in
front
of
them,
address
the
problems
today,
let's
not
worry
about
the
future.
We've
never
done
that
in
water
time.
We've
had
a
pretty
good
track
record
of
being
conservative
and
how
we
budget
we're
trying
to
look
out
the
point
we're
so
in
10
or
15
years.
It
doesn't
become
a
problem.
Yep
I.
D
Just
like
to
interject
just
to
put
a
couple
numbers
to
it:
I
want
to
talk
about
our
general
fund
for
just
a
minute.
I
apologize
for
interrupting
here,
but
I
thought
it
might
be
a
good
point.
Our
general
fund
at
the
end
of
2017
was
like
our
unabated
general
fund
balance
like
7.2
million,
something
like
that.
Our
2019
budgeted
general
fund
expenditures,
roughly
19
million
dollars.
You
do
the
math
on
that.
What
that
means
is
we've
got
about
five
months
worth
of
general
fund
expenditures
sitting
in
our
general
fund
now.
Are
we
gonna?
D
E
And
we
do
have
fun
reserves.
Kristen's
gonna
address
some
of
that,
because
if
you
look
at
her
taxes,
not
every
year,
do
we
get
enough
taxes
to
cover
all
expenses.
So
when
we
have
expenses
greater
than
our
revenues
will
go
into
reserves
to
cover
that
difference,
but
there's
also
years
where
we
have
revenues
that
are
greater
expenses
and
then
that
feeds
into
the
reserves
for
the
next
time
the
rate
that
the
rain'
decides
to
come
so
I'm
gonna
turn
over
the
Kristen
I've
talked
about
where
the
pennies
come
from.
B
Thank
you,
okay,
so
we
have
just
went
over
as
councilman
Roby
said
how
we
get
our
money
and
now
we're
going
to
talk
about
where
it
goes.
So.
The
first
penny
of
our
sales
tax
in
the
property
tax
are
all
placed
into
our
general
fund.
The
second
penny
tax
goes
into
the
Capital
Improvement
Fund,
and
the
third
penny
is
placed
into
the
BBB
fund.
So
when
we
look
at
the
general
fund,
I
always
like
to
think
of
our
general
fund
is
basically
our
operating
fund.
That
is
the
fun
that
houses
our
public
safety.
B
Our
public
works
our
administration,
that's
our
engineering,
our
finance
attorney.
Those
are
those
items.
So
when
we
look
at
the
general
fund
think
operating
it's
the
running
of
the
city,
when
we
look
at
the
revenue
side
of
the
general
fund,
the
first
penny
sales
tax
on
average
is
putting
about
46
percent
of
the
revenue
into
that
fund.
The
property
tax
on
average
is
around
the
20%
that
goes
in
for
revenue,
and
our
transfers
in
are
around
11%
the
other
sources.
There's
lots
of
different
things.
B
When
we
flip,
when
we
look
at
the
expenditure
side,
the
personnel
services,
that's
our
wages
and
benefits
to
our
employees
there
again,
a
lot
of
the
personnel
services
are
the
public
safety.
That's
for
your
police,
your
fire,
the
street,
the
snow
removal
stuff,
like
that,
when
you
think
of
your
operating
expenditures,
that's
where
again,
you
want
to
think
of
that
day-to-day
running
of
the
city.
That's
going
to
be
the
different
utilities,
that's
the
fuel,
that's
the
supplies
for
the
many
different
departments
that
house
that
are
housed
in
the
general
fund,
the
capital
equipment
expenditures.
B
Those
are
some
a
couple,
big
ones
that
you
can
think
of
when
you
think
of
that
is
the
street
equipment.
We
got
the
motor
graders
the
loaders,
and
then
the
general
fund
also
does
help
out
the
park
and
Rec
and
the
airport
on
some
of
their
day
to
day
operations
in
2018,
1.7
million
dollars
was
transferred
out
of
the
general
fund
to
the
park
and
Rec
funds.
B
Next
fund
that
we'll
talk
about
is
the
capital
improvement
fund
when
you
think
of
the
capital
improvement
fund.
Think
of
the
infrastructure
improvements
throughout
the
city,
think
of
those
big
things:
you're,
building
roads,
you're
building
new
buildings,
remodeling
some
of
the
other
ones
we
have.
So
that's
what
the
capital
improvement
fund
is.
The
capital
improvement
fund
has
some
restrictions.
It
is
actually
restricted
by
city
ordinance
for
what
can
be
spent
out
of
the
capital
improvement
fund
on
the
revenue
side,
the
capital
improvement
fund.
B
You
can
see
84
percent
on
average
of
the
revenue
that
goes
in
there
is
from
sales
tax,
so
it
relies
heavily
on
sales
tax
revenue
when
we
flip
to
the
expenditure
side.
There
again,
like
I,
said
the
capital
improvement
fund
is
the
one
where,
when
we
build
new
roads
when
we
redo
our
roads,
this
is
the
one
that
we
we
look
to
for
this.
It
also
can
buy
ordinance,
pay
for
our
ambulance
and
our
fire
trucks.
The
other
thing
that
I
want
to
touch
on
is
the
debt
service.
B
B
I
do
want
to
reiterate
the
point
that
the
city
does
not
use
its
capital
improvement
dollars
for
operating
expenditures,
as
I
said
that
capital
improvement
dollars
are
restricted
by
city
ordinance
for
only
capital
expenditures,
the
infrastructure,
fire
trucks,
ambulance,
contribution
to
9-1-1
and
debt
so
and
the
last
one
we'll
talk
about
is
our
BBB
fun,
our
BBB
fund?
When
you
think
of
that,
you
want
to
think
of
your
advertising
and
promotion
of
the
city,
your
recreation,
that's
what
the
BBB
fund
was
for,
as
you
can
see
from
this,
that
is
pretty
much.
B
B
On
the
expenditure
side,
the
BBB
fund
helps
to
support
the
Wiarton
Events
Center.
It
helps
to
support
the
Convention
and
Visitors
Bureau,
the
Watertown
Chamber
there
again
those
help
us
in
our
advertising
and
promotion.
We
want
to
promote
the
city
of
Watertown
and
bring
in
the
recreation
so
with
that
I
think
it's
back
to
councilman
Roby
I.
E
Get
to
do
all
the
graphs
so
so
quick
review
the
general
fund
day-to-day
operations,
we
open
the
doors
we
close,
the
doors
which
we
pay,
our
employees,
the
Kaplan,
Improvement
Fund,
we're
building
the
city,
it's
our
infrastructure,
the
BBB
fund,
entertainment,
dining
need,
etc.
So,
let's
look
at
just
the
revenue
side
of
those
three
funds.
Our
graph
here
again
is
15
years
along
the
bottom.
We
go
up
to
30
million
on
top
and
five
five
million
dollar
increments.
E
So
those
three
funds
combined
again
just
to
look
at
the
average
growth
that
first
five-year
period,
o
307.
It
was
9.38%.
If
you
remember
from
our
past
charts,
though
that
was
a
good
period,
economy
was
working
pretty
well.
At
that
time
you
look
at
a
8
2012,
it's
still
growing
over
5%.
If
you
look
at
2013
to
2017,
we
actually
grew
at
a
slightly
negative
percent.
So
if
you
look
at
the
chart
we're
at
in
17,
it
is
slightly
below
where
we
were
in
2012.
E
Now
these
things
are
cyclical,
so
again
we're
in
good
health,
the
city's
doing
very
well,
but
that
has
certainly
caught
our
attention.
I
referenced
earlier,
when
we
had
our
budgeting
sessions
going
through
early
this
year.
You
know
we
saw
we
did
have
a
few
cuts
here
and
there
we
were
trying
to
get
position,
we're
just
being
cautious,
we're
confident
that's
going
to
be
on
the
upswing
again,
but
that
does
grab
our
attention
a
little
bit.
We
definitely
want
those
to
be
positive
numbers,
so
that
again,
is
the
revenue
for
those
three
major
funds.
E
Now,
if
you
look
at
the
expenditures
for
those
three
major
funds,
combined
again
that
bounces
around
a
little
bit
more
when
you
put
them
all
three
together
but
look,
this
is
what
our
expenditures
growing
at
a
little
over
7%
in
the
blue,
a
little
over
4%
in
the
green
and
just
barely
negative
in
the
yellow.
But
the
thing
you
learn
from
look
at
these
two
charts
is
from
2013
to
2017
at
negative
4
point
2
negative
0.24%
for
our
revenue.
It
was
a
negative
0.02
percent
for
expenditures.
E
E
This
chart
is
a
combination
of
the
first
two
we
just
had
so
this
has
both
the
revenues
and
expenditures
for
those
three
funds
combined
and
what
you're
going
to
see
there
is
now
you
start
to
see
where
they
start
bouncing
around.
We
have
some
years
where
we
have
more
revenue
within
expenses
we
have
some
years.
We
have
more
expenses
than
revenue
again.
If
we
have
excess,
revenant
goes
into
reserves.
If
we
have
excess
expenses
or
don't
have
enough
revenue
to
cover
our
expenses,
we'll
go
dip
into
reserves.
E
F
E
When
we
start
the
year,
it
never
matches
at
the
end
of
the
year,
but
we
look
at
these.
There
are
some
things.
Were
you
look
at
this
year
in
2006
or
you
get
a
big
spike
in
revenue?
What
those
spikes
typically
mean?
Is
we
probably
refinanced
some
debt?
We
maybe
had
some
debt
for
some
other
infrastructure
projects.
When
we
refinance
that
debt
we
get
all
the
money
back
in
again
and
it
comes
in
as
revenue.
E
So
if
we
refinance
a
million
dollars,
we
get
a
million
dollars
of
revenue
or
whatever
the
balance
is
left,
and
then
we
spread
that
out
over
time
and
expenses,
so
those
spikes
are
a
little
bit
misleading
but
again
there's
times
also
where
you
see
the
expenses
are
a
little
more.
Maybe
we
had
a
project
that
wasn't
budgeted
for
and
we
had
to
get
that
project
done
now
as
an
emergency
we
had
to
do
it.
We
had
a
dip
in
reserves
to
do
that.
E
Reserves
have
come
up
a
couple
times,
we're
not
going
to
talk
about
that,
but
we
typically
keep
about
four
months
in
our
reserve
funds.
That's
a
conservative
way
to
do
that.
Glenn
touched
upon
some
of
that
earlier,
we've
always
done
a
good
job
of
that
with
a
city
I'm,
keeping
her
reserves
where
they
should
be
so
again
we're
in
good
financial
shape.
The
trends
are
trending
a
little
bit
the
way
we
don't
want
them
to
we're,
just
keeping
a
close
eye
on
it.
A
Those
doggone
taxes
are
so
unpredictable.
That's
our
challenge
and
not
much.
We
can
do
about
it,
but
live
with
it.
Do
the
best
to
try
to
budget
around
it
and
our
expenses,
some
of
them
are
compounding
so
we
need
to
pay
close
attention
to
that
and
the
current
trend,
where
some
of
our
expenses
are
growing
faster
than
our
revenues,
that's
something
we
really
watch
like
a
hawk
because
we
don't
want
those
two
lines
to
intersect.
A
So
what
can
we
do
about
that?
We're
fortunate
that
we're
in
a
good
situation?
Now
the
city
is
healthy,
we're
economically
sound.
Our
fund
balances
are
strong,
we're
not
exceeding,
or
even
coming
close
to
our
debt
capacity
and
sales
taxes.
This
year
are
looking
really
good
and
I
can
say
we
expect
to
get
if
you
take
what
we
did
last
year
in
those
last
couple
months
and
add
it
to
what
we've
done
this
year.
So
far,
we
should
come
out
about
15
million
nine
hundred
thousand
dollars,
which
is
about
3.2
percent
better
than
2017.
A
So
that's
a
good
thing.
On
the
average
over
the
last
five
years,
we've
been
growing
at
slightly
under
2%,
so
3.2
percent
is
good.
We
like
that.
So,
when
we're
budgeting,
we
always
try
to
be
conservative
and
that
way,
we're
safe.
But
even
when
we
budget
conservatively,
there
are
times
when
our
revenues
are
less
than
our
expenses
and
we
might
have
to
make
some
adjustments.
A
So
we've
we've
done
that
we
had
to
do
that
this
last
budget
year,
just
to
make
everything
balanced
and
it's
normal
to
have
to
do
that
if
you're
not
doing
that,
you
run
out
of
reserves
and
so
we're
not
going
to
run
out
of
reserves.
So
what
I'd
really
rather
do
then
cut
expenditures
is
increase
our
revenues.
A
So
the
city's
been
working
very
closely
with
the
Watertown
development
company,
with
the
Convention
and
Visitors
Bureau
and
with
the
Chamber
of
Commerce,
to
look
for
ways
to
increase
our
revenues
and
we're
putting
a
lot
of
energy
and
effort
into
doing
that,
and
we
have
been
I
mean
the
amenities
that
we
have
in
our
community,
like
the
new
Wellness
Center,
for
instance.
That
is
helping
us
to
generate
revenue
and
we
need
to
keep
looking
for
those
things.
The
vision,
vision,
h,
2020
that
we
did
in
2012.
That
was
a
fantastic
tool
for
us
to
do.
A
So
there's
one
thing:
I
want
to
point
out:
I,
don't
know
if
you've
walked
through
the
hallway
coming
into
the
finance
department,
there's
a
whole
bunch
of
certificates
on
the
wall.
Our
finance
offices
last
year
received
the
certificate
of
achievement
for
excellence
in
financial
reporting
from
the
government,
finance
Officers
Association,
and
what
that
signifies
is
that
our
finance
report
goes
above
and
beyond.
What
it
has
to
transparency
is
very
important
to
us.
So
we
don't
just
report
the
bare
minimum.
A
We
report
a
lot
more
and
it's
the
whole
city,
including
municipal
utilities,
we're
doing
a
good
job
of
reporting.
What
we
need
to
report,
plus
more
and
actually
last
year
only
for
municipalities
got
that
award.
It's
not
like
everybody
gets
it
and
in
fact,
for
the
last
35
years,
we've
gotten
that
award
every
single
year.
So
that
should
give
you
some
confidence
in
our
city,
finance,
department
and
staff,
and
the
municipal
utilities.
They've
done
a
great
job,
they're,
very,
very
careful,
and
but
it
isn't
just
them.
A
It's,
though,
all
the
city
departments
as
well
and
I
have
to
say
the
departments
do
have
to
obey
the
finance
officer
she
rules
with
an
iron
fist,
but
because
of
that,
we're
in
good
shape,
and
this
thanks
to
all
the
city.
Employees,
for
that,
and
things
are
great
in
Watertown.
It's
really
a
good
place
for
us
to
be,
and
I'm
actually
very
excited
about.
Some
of
the
things
that
are
developing
and
our
potential
for
growth
is
great
and
I.
Think
we're
gonna
see
it
in
the
next
few
years,
so
things
are
really
good
and
I.
A
G
I'm
trying
to
figure
out
how
best
to
award
this
the
trend
that
we're
seeing
in
terms
of
decreased
percentage
of
an
increase
is
that
something
that's
happening,
statewide
or
even
nationwide,
or
is
that
somehow
unique
to
Watertown?
What
do
we
know
about
other
municipalities?
Does
that
reflect
something
that's
going
on
statewide.
B
E
I
would
just
add
from
a
national
standpoint
if
you
go
back
to
oh
wait
when
the
recession
hit,
you
saw
a
lot
of
cities,
states,
other
municipalities,
other
parts
of
the
country
really
take
a
big
hit
and
we
we
went
through
that
in
pretty
good
shape.
We
took
a
dip
recovered
very,
very
quickly.
The
Midwest
overall
did,
and
the
other
part
I
would
add
to.
It,
though,
is
worse,
we're
very
egg
tide.
So,
as
egg
goes,
we
typically
go
and
eggs
having
a
tough
go
over
right
now.
E
H
And
maybe
just
to
echo,
on
top
of
that
dime
we
had
this
conversation
as
well.
Many
of
the
communities
that
are
what
I
would
call
economic
centers
for
the
region's
they're,
all
tied
to
a
specific
geographic
trade
area,
and
if
you're,
finding
population
decreases
in
your
Geographic
trade
area,
those
people
all
come
to
the
central
hubs
for
most
of
their
shopping,
and
so,
while
in
our
geographic
trade
area
hasn't
grown,
hasn't
shrunk,
we
have
been
seeing
a
population
decrease
in
our
area.
E
To
take
that
just
a
step,
further
I
came
from
a
community
map
before
I
moved
back
in
Oh
three
was
a
suburb
of
Minneapolis
brand-new
suburb,
very
little
industry.
What
do
you
think
happened
to
their
property
taxes
because
they
had
to
build
schools
for
all
these
people
moving
in
with
kids,
so
their
property
taxes
were
going
up?
We
have
the
benefit
of
having
a
pretty
strong
industrial
base,
pretty
good
retail
sector.
We
were
we
service
there
about
a
hundred
thousand
people
and
we're
able
to
spread
that
out
amongst
those
different
tax
sources.
I.
A
Think
it's
really
important
to
point
out
how
shopping
locally
really
affects
us.
It
has
a
huge
impact
on
us,
so
we
need
to
make
sure
that
we're
doing
that
ourselves
and
looking
for
opportunities
to
grow
that
in
any
way
that
we
can
and
the
early
planning
that
was
done
in
this
community,
with
our
municipal
utilities
being
separate
but
part
of
our
organization,
a
separate
board
that
was
really
really
smart
and
having
a
Watertown
development
company
since
1940
or
something
like
that.
A
E
If
I
could
chime
in
to
that,
the
point
was
made,
we
don't
commingle
at
the
Capital
Improvement
Fund
with
the
general
fund.
Some
cities
do
that
we
don't
we've
been
very
consistent
about
that.
If
you
look
at
our
Capital
Improvement
Fund,
there
are
times
we've
used
debt
to
supplement
that
the
Wellness
Center
is
a
good
example,
but
there's
also
times
we've
used
that
Capital
Improvement
Fund
to
build
the
facility.
E
A
good
example
is
our
Police
Department
we're
building
that
fund
up
as
we
move
forward
when
that
mission,
when
that
building
was
put
together
and
built,
we
pay
for
that.
We
were
saving
for
that
in
advance.
So
it's
like
we're
getting
ahead
of
the
game,
because
we
know
the
expense
is
coming
so
hats
off
to
the
city
for
doing
that,
and
that's
true
with
the
fire
department
as
well.
E
A
Would
like
to
add
to
that
as
we
build
these
new
facilities
like
the
softball,
complex
and
tournaments,
come
here,
and
we
used
Capital
Improvement
funds
to
build
those,
but
then
the
people
that
come
here
and
spend
money.
A
lot
of
that
goes
back
into
that
BBB
tax,
which
is
set
by
state
law.
How
we
can
use
that
BBB
money
and
we
don't
do
it
differently
than
the
state
law.
A
B
Get
to
play
the
unknown
card
again,
I
think
that's
a
tough
one.
I
think
everybody
likes
to
think
it's
gonna
have
a
huge
increase,
but
I
don't
know
if
anybody's
really
comfortable
saying
what
it
is.
Until
we
till
we
see
it's
it's
a
big
unknown
because
it
hasn't
really
been
monitored
up
until
now.
So
I
think
with
that
I
have
to
say
it's
an
unknown
I'm
hopeful
that
it's
really
high
but
I,
think
it's
unknown.
Kristin.
B
Yeah,
as
far
as
how
it
ranks
there
again,
this
presentation
wasn't
really
designed
to
compare
ourselves,
there's
so
many
communities
that
do
think
so
much
differently
than
we
do.
What
we
wanted
to
do
was
just
to
break
down
how
the
city
of
why
our
time
is
doing
as
far
as
the
forty
percent
I
feel
that
it's
it's
a
very
comfortable
spot
that
we're
in
at
forty
percent
I
don't
feel
like.
As
the
mayor
stated,
we
have
plenty
of
debt
capacity
as
far
as
2018.
B
We
could
still
legally
go
to
forty
seven
more
million
dollars
now
what
I
feel
comfortable
with
that?
No,
but
where
we're
sitting
right
now
as
far
as
paying
the
principal
and
interest
back
I
think
the
forty
percent
is
is
accurate.
The
other
thing
is
comes.
When
Roby
mentioned,
we
do
restrict
our
capital
improvement
fund
for
simply
infrastructure.
So
to
me,
that's
what
it
was
designed
for.
B
E
Add
that
I
see
Rick
hone
sitting
here
in
the
audience
here,
but
we
just
built
the
brand
new
middle
school
here
in
Watertown
and
they
have
the
same
discipline
with
their
capital
fund
at
the
School
District,
as
we
do
here
in
the
city.
So
when
we
built
that
new
school,
your
property
taxes
didn't
go
up
because
they
have
been
planning
for
that
and
the
way
they
have
revenues,
expenditures
and
savings
and
and
such
so
there's
another
example
we're
planning
for
that.
E
In
the
sense
of
borrowing,
though,
we
did
borrow
and
then
bond
out
for
the
Wellness
Center,
which,
by
the
way,
is
bringing
in
more
revenue
than
it,
then
we're
having
an
expenditures
which
is
great
news
and
it's
also
bringing
people
to
town.
But
with
the
Wellness
Center
and
such
you
know.
We
are
well
within
our
capacity
on
that.
We
also
borrowed
at
very
low
interest
rates
and
that's
the
timing
that
worked
out
very
well
for
the
city.
K
A
It
takes
time
it
takes
time
and
people
are
not
building
brick
and
mortar
stores
right
now,
they're
in
the
process
of
closing
them
all
over
the
country,
so
isn't
just
water
tone,
it's
all
over
that
we're
seeing
those
trends
and
we're
trying
to
stay
on
top
of
it.
So
yes,
it's
a
it's
a
very
big
concern
for
us.
You
want
to
add
other
questions.
E
So
the
CVB
is
really,
you
know
actively
working
a
lot
of
times
it's
outside
of
our
community
to
try
and
bring
those
people
into
our
community
and
I.
Think
I
alluded
to
this
earlier,
but
they're
doing
a
lot
of
things
with
social
media,
very
data-driven
decisions
where
they're
getting
very
specific
on
who
they
go
after
and
how
they
go
after
them,
and
I
think
that
we're
starting
to
see
the
fruits
of
that
effort.
I.
M
Matt,
you
won
the
bet
Kristin.
We
talked
about
the
40%
in
our
debt
capacity
that
we're
paying
out.
Now
we
do
have
a
payoff
that'll
be
coming
within
the
next.
What
four
or
five
years
I
believe
it
is
that
will
pay
off
the
debt
for
the
event
center.
Is
that
correct?
Yes,
I?
Believe
it's
five
years
four
years,
yeah.
M
C
B
G
Do
we
have
any
way
of
analyzing
areas
or
regions
of
town
or
industrial
parks
or
whatever
it
is?
Do
we
have
any
way
to
analyze
revenue
generation
versus
expenditures,
or
does
that
factor
in,
especially
when
we're
thinking
about
increasing
or
trying
to
strategize
to
increase
sales
tax
revenue
generation,
I
mean
how
do
we
target
areas?
What's
the
low-hanging
fruit,
the
the
low-cost
high-return
areas.
A
There
are
ways
to
do
that,
and
we've
been
thinking
about
going
about
a
study
such
as
you
described
where
we
can't
get
specific
numbers
from
the
Department
of
Revenue.
They
won't
tell
us
what
any
one
business
generates
in
revenue,
but
they
will
tell
us
a
group
and
if
we
give
them
a
list
of
businesses,
they
will
tell
us
the
revenue
generation,
and
we
could
do
that
in
in
various
different
sectors
of
our
tone
and
compare
it
to
you
know
what
the
infrastructure
costs
are.
What
the
tax
generation
is
from
property
tax.
A
We
can
add
all
that
together
to
see
what
the
bang
for
the
buck
is.
So
to
speak,
I
mean
when
you
have
a
concentrated
central
business
district
where
you
have
all
of
the
land
is
utilized
for
buildings
outside
of
the
right-of-way.
In
other
words,
parking
is
not
provided
on
private
property,
but
within
public
property.
It's
highly
concentrated
buildings
and
usually
several
storeys
up
there.
That's
usually
intensely
revenue
rich
and
in
watertown.
A
A
And
and
if
you
look
around
and
I've
seen
these
charts
on
many
many
different
communities,
because
I'm
interested
in
this
kind
of
stuff
downtown's
are
really
worth
the
investment
because
they
are
rich
in
intense
development
and
revenue
generating
pockets
purses.
What
we
have
to
pay
the
limited
amount
that
we
pay
to
maintain
roads
to
them,
they're
all
sharing
the
roads,
and
so
that's
a
generally
a
good
place.
You
get
a
good
return
on
your
investment
and
it's
you
know
old
buildings
generally
in
anybody's
downtown.
A
Those
are
the
first
parts
of
the
communities
that
developed
and
so
the
buildings
are
very
old
and
they
they're
the
heart
of
almost
any
community,
but
the
investment
that
you
make
there
pays
off
quickly,
and
so
that's
part
of
the
reason
that
I
think
it's
really
important
that
we
focus
on
our
downtown.
Not
only
is
it
the
heart
of
our
community,
but
we
do
get
more
bang
for
the
buck.
A
We
don't
have
a
two
mile
stretch,
a
road
with
three
or
four
box
stores
on
it,
which
you
know
if
we
follow
some
of
their
standard
operating
procedure,
they'll
be
there
15
years
or
20
years,
and
then
they'll
abandon
the
building.
We'll
still
have
to
maintain
that
road
and
that
road
only
leads
to
them
in
some
cases.
So
you
know
this
is
urban
planning
what
Liam's
talking
about
other
questions
or
comments?
A
A
Okay:
let's
go
ahead
and
wrap
this
up.
Is
there
any
old
business?
Seeing
none?
Is
there
any
new
business?
No
new
business?
Are
there
any
liaison
member
reports?
None.
We
have
no
reason
to
go
into
executive
session
pursuant
to
SDC
l1
25.
So
I
look
for
a
motion
to
adjourn
circle
by
y
ii
by
l'olam
any
discussion,
all
those
in
favor
signify
by
saying
aye.
Those
opposed
signify
by
saying,
nay
motion
carries.