City Council

Minutes were approved by the Laconia City Council on June 2, 2025. CITY OF LACONIA - CITY COUNCIL BUDGET MEETING City Hall - Armand A. Bolduc City Council Chamber 6:00 P.M. 5/20/2025 - Minutes 1. CALL TO ORDER Mayor Hosmer called the meeting to order at 6:04 PM 2. SALUTE TO THE FLAG Councilor Haynes led the salute to the flag. 3. RECORDING SECRETARY Hilary Young, Administrative Assistant to the City Clerk 4. ROLL CALL Ms. Young called the roll of the following councilors: Councilor Soucy, Councilor Hoffman, Councilor Haynes, Councilor Bogert, and Councilor Felch. Absent: Councilor Cheney Mayor Hosmer stated 5 councilors were in attendance and a quorum was established. 5. STAFF IN ATTENDANCE Kirk Beattie, City Manager and Glenn Smith, Finance Director 6. PRESENTATIONS 6.A. Department Budget Presentation - Water Department Ben Crawford, Superintendent of Laconia Water Department, presented his department’s budget that was approved by the water commission in February. The water department is an enterprise fund; they are running off water revenue. Health insurance and a new server are two things that they are looking into. Mr. Crawford went over the department’s revenues, they had about 120 more units added over the past year, and consumption has not increased. Councilor Hoffman questioned the interest in savings. Mr. Crawford discussed the status of the department’s bank accounts with the council. Mayor Hosmer asked if there is a best practice or financial benchmark that we should be at based on the overall operating expenses of a department as to how much we should have for cash on hand. Finance Director Smith stated that he has the number for a general fund tax supported services but does not know for an enterprise fund. Mayor Hosmer questions if we should get some guidance from one of the City’s financial advisors. Mr. Crawford stated that Melanson & Heath, our auditors from two or three years ago, recommended the 6-month cash balance in the bank accounts. At the board level, they are looking at a rate increase next year.  overall operating expenses of a department as to how much we should have for cash on hand. Finance Director Smith stated that he has the number for a general fund tax supported services but does not know for an enterprise fund. Mayor Hosmer questions if we should get some guidance from one of the City’s financial advisors. Mr. Crawford stated that Melanson & Heath, our auditors from two or three years ago, recommended the 6-month cash balance in the bank accounts. At the board level, they are looking at a rate increase next year. Councilor Bogert asked for clarification on the balance of the savings account. Mr. Crawford went over expenses; the department is now fully staffed but does have two retirements at the end of the year. They will be dissolving the Controller position and making it a Financial Analyst position. The salaries line increased about 11%. Production expenses had a 6.7% increase Distribution expenses had a 23% increase, the maintenance of mains increased because of a lot of water main breaks this winter. Billing expenses have increased but they are working on electronic billing to help decrease this line. Other expenses- This includes medical insurance which had a 15% increase, but they will be changing insurance by end of the year as Health Trust will be dissolving. They are looking into switching to city insurance and has been working with the City Manager. Mayor Hosmer asked where the department is at with cyber security protecting the SCADA system. Mr. Crawford stated that they went offline in 2021, and it has worked well. They did upgrade their computers through a grant and are able to go back online if needed. 6.B. Department Budget Presentation - Planning Planning Director Rob Mora presented the Planning Departments proposed budget. Department Responsibilities: l Planning l Enforcement l Community Development l Special Events l Administrative Provides staff support and technical training to the following boards and commissions: l Planning Board l Zoning Board of Adjustment l Historic District Commission l Conservation Commission l Downtown TIF Advisory Board l Lakeport TIF Advisory Board l Weirs TIF Advisory Board l Special Events Review Committee l Lakes Region Planning Commission l Master Plan Steering Committee l Technical Review Committee l Capital Improvement Committee Ordinance Updates The Planning Department is currently working on updates to the following Ordinance and Regulations. Ordinance Updates The Planning Department is currently working on updates to the following Ordinance and Regulations. l Impact Fee – Our contractor (DTA) is currently working on our new Impact Fee Study and should be going before Planning Board in the next few months. l Chicken Ordinance – This passed at Planning Board in May and was referred to the Government Operations & Ordinances Subcommittee. l Casinos – This update was tabled at City Council until May. l Short Term Lodging – A Public Hearing will be held at the June 2025 Planning Board Meeting after a Non-meeting with Legal l Rezone of Blueberry Ln – One parcel on Blueberry Ln was rezone to Residential Apartment l Combining the Heritage Commission and the Historic District – The two commissions would like to combine. l Site Plan and Subdivision Regulations – We posted an RFP to have our regulations re- written to which we had no applicants for our proposed price point. l Performance Zoning – Currently working on a re-write to add performance standards. l Unregistered Vehicles/Recreational Vehicles – Legal is reviewing our draft language. Department Goals Master Plan l Update Land Use Chapter and Vision Statement l Add 5 Chapters: ¡ Housing ¡ Economic Development ¡ Energy ¡ Transportation ¡ Natural Hazards ¡ Add Implementation Plan This is currently in the proposed budget for $100,000 Staffing We have seen an incredible amount of development come to the City of Laconia and are expecting more with the redevelopment of the State School property. The Planning Dept. is the first department that sees the increase in demand. In accordance with our 10-Year Strategic Plan, we asked for three additional staff members: l A Project Manager l 1 additional Land Use Tech l 1 part time Secretary Currently in the proposed budget we have a Project Manager position funded for 6 months Planning Budget The Planning Department’s Operating and Internal Service Budget has increased by $2,207 or 3.6%. Our Salaries budget does have a $40,583 increase for our proposed Project Manager position. (This is for 6 months) The Conservation budget has no proposed changes.  The Planning Department’s Operating and Internal Service Budget has increased by $2,207 or 3.6%. Our Salaries budget does have a $40,583 increase for our proposed Project Manager position. (This is for 6 months) The Conservation budget has no proposed changes. Councilor Soucy asked for the estimated amount of impact revenue for the next 4-5 years. Mayor Hosmer stated that he does not want to use impact revenue as a source to fund operations. Councilor Soucy asked if $100,000 is enough for the master plan. Director Mora believes that would be sufficient. Assistant Director Carmicheal went over market trends. 6.C. Department Budget Presentation - Finance Finance Director Smith presented the Finance Department’s proposed budget. The Finance Department is replacing their 20-year-old finance system with Tyler Technologies. The new system will include: General Ledger Purchasing Budgeting Accounts Payable Accounts Receivable Asset Management They plan to go live in September. Councilor Soucy asked if just the City was switching or if any of the enterprise funds/departments are switching also. Director Smith stated that it is just the city, but it was offered to other departments. Director Smith stated that they could always bring in other modules if a switch for other departments wanted it. Director Smith briefed the council on the IT budget that has a $45,000 increase due largely to licensing renewals. They also have expenses incurred to ensure the city website is ADA compliant. Councilor Soucy asked if the system is cloud based and where we stand with cyber security. Anticipated Grants l Process modified to exclude large grants that warrant an individualized public hearing l Process modified to exclude grants for which there is reason to believe that the award may not happen in FY26 l 14 grants totaling $77K, with $13,100 in local match of which $5,000 is in cash match l All anticipated grants are in the Police Department Bonded Debt l No new bonds proposed in the FY26 budget l Currently the General Fund is carrying 23 bonds, counting both City and School l The FY26 budget proposes bond principal payments of $3.4 million, with the City accounting for $2.3 million of this total l This represents a 14% increase from FY25 l No current bonds will be retired until 2028 TIFs- How they work 1. The year the district is formed the value of the properties in the district is measured 2. Every year thereafter the value of the properties in the district is measured again  l This represents a 14% increase from FY25 l No current bonds will be retired until 2028 TIFs- How they work 1. The year the district is formed the value of the properties in the district is measured 2. Every year thereafter the value of the properties in the district is measured again 3. Captured Value = Current value of properties – original value of properties 4. Maximum Retained Value = 1/2 Captured Value 5. Maximum Increment = Maximum Retained Value x Most recent tax rate (not including state education portion) 6. Actual Increment should be set at a value to fund projects approved by Council Tax Increment Financing District – Downtown l Maximum Increment: $483,207 l Recommended Increment: $325,000 l Goals: Fund approved projects Continue to gradually reduce fund balance l Approved projects: ¡ 2015 bond payment (10 years remaining) ¡ Colonial bond interest payment ¡ Colonial condo association fee Beginning Fund Balance: $739,000 Ending Fund Balance: $714,528 Tax Increment Financing District – Lakeport l Maximum Increment: $78,685 l Recommended Increment: $75,000 l Goals: Fund approved project l Approved projects: ¡ Promenade Project Beginning Fund Balance: $54,018 Ending Fund Balance: $4,018 Tax Increment Financing District - Weirs l Maximum Increment: $1,058,331 l Recommended Increment: $230,000 l Goals: Fund approved projects and gradually bring fund balance to approximately $100,000 l Approved projects: ¡ 2016 bond payment (11 years remaining) ¡ Dock improvement bond payment Beginning Fund Balance: $3,171 Ending Fund Balance: $22,671 GENERAL FUND NON-TAX REVENUES  Beginning Fund Balance: $3,171 Ending Fund Balance: $22,671 GENERAL FUND NON-TAX REVENUES l Rooms and Meals tax is projected to increase by $144K, 7.6%, following trend of recent years. l Charges for Services projected to increase by $202,250, 7%, driven largely due to increased tonnage on construction and demolition disposal. l Interest on General Fund Deposits expected to increase, and then plateau l Miscellaneous Revenues increases by $328K due to receipt of reimbursement from Airport Authority, partially offset by transfers received in FY25 that are not repeated in FY26. Welfare l $105,000 increase in City Relief line to accommodate housing crisis. 7. Any other business that may come before the Council 8. ADJOURNMENT Mayor Hosmer adjourned the meeting at 8:06 PM Respectfully submitted, Hilary Young, Administrative Assistant to the City Clerk