July 25, 2025 · 8:00 AM

Personnel and Finance Committee

The committee got an early warning on two budget pressure points: police overtime is already over budget at mid-year, and inspections part-time wages are far above plan. They also kept moving toward a full-time building inspector plan and a rewrite of the city’s residency rules, but didn’t vote on either yet.

Key Decisions

Mid-year budget check showed police overtime already at 101% of the yearly budget ($81,941) by June 30, with the city saying some overtime work should be partly offset by grant revenue. That’s a real red flag for the rest of 2025 because overtime overruns tend to snowball if staffing and workload don’t change.

Inspections part-time wages were at 160.5% of budget ($88,756) at mid-year, and the City Manager said the inspector hours have been under-budgeted for multiple years. This is the kind of “we knew the number was wrong” budgeting that makes it harder for residents to trust the city’s spending plan.

Staff said there isn’t much room in the 2025 budget to add a full-time building inspector, and floated a short-term patch: moving money from the Economic Development Fund (where a position is vacant). They also flagged longer-term options like raising permit fees and possibly sharing the position with the Town of Two Rivers.

Public Input

No public comments or communications recorded for this meeting.

Agenda Items

Review Status of 2025 General Fund Budget at Mid-Year:; June 30, 2025 Status Report

Staff told the committee overall spending was about on pace (50.3% spent at mid-year), but two areas were already far off track: police overtime and inspections part-time wages. Police overtime was at 101% of the annual budget by June 30, and the city circulated an email from the police chief explaining causes and saying some overtime should be offset by grant revenue. For inspections, the City Manager said the city has been under-budgeting the part-time inspector wages in the current and prior years—meaning the budget problem is partly self-inflicted, not a surprise.

📄 See in official document: Page 1

Continue Discussion of Funding Options for Full-time Building Inspector Position: Possible Recommendation to City Council

The City Manager said the 2025 General Fund doesn’t have much flexibility to fund a full-time building inspector. He suggested a possible stopgap: transferring money in from the Economic Development Fund because a position there is vacant, while acknowledging that approach isn’t sustainable. Longer-term, staff pointed to raising permit fees and exploring a shared position with other local governments, with the Town of Two Rivers showing interest.

📄 See in official document: Page 1

Continue Discussion of Possible Amendment to Personnel Policy Regarding Residency Restrictions; Possible Recommendation to Citv Council

The City Manager said he reviewed a draft residency-policy amendment with the city’s labor attorney. He plans to bring an updated draft and a proposed resolution to the next meeting for possible committee recommendation. For residents, the key takeaway is timing: the committee is setting up a policy change, but the actual details weren’t presented in these minutes.

📄 See in official document: Page 1

Update on R.W. Baird Review of City Tax Incremental Districts

The City Manager said R.W. Baird was still working on its analysis of the city’s tax incremental districts and expected to have a report ready for staff review by mid-August. No findings were shared yet, so residents don’t have enough information to judge what changes—if any—might be recommended. This is a “watch for the next document” item.

📄 See in official document: Page 1, Page 2

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