[9:59] [ambient conversation]
[10:30] >> The time is 630.
[10:32] I'd like to call the Bal Harbour Village Council first budget
[10:36] meeting to order.
[10:37] Mr. Clark with the roll.
[10:43] [calling roll]
[10:47] Thank you.
[10:48] We have a quorum.
[10:52] >>
[10:52] >> Thank you Mr. Clark.
[10:54] Everyone please rise for the pledge.
[10:57] >> I pledge allegiance to the flag of the United States
[10:59] of America and to the Republic for which it stands,
[10:59] one nation under God, indivisible,
[11:00] with liberty and justice for all.
[11:13] >> Thank you everyone for joining us tonight.
[11:14] I would like to recognize our new village clerk.
[11:19] This is actually his first council meeting
[11:22] that he's clerking.
[11:25] So I thank you for joining us.
[11:27] Welcome to the team and looking forward
[11:30] to having a nice long tenure with you
[11:34] here in Bal Harbour village.
[11:37] >> Thank you Mayor.
[11:39] I'm excited to get to work.
[11:42] >> Requests for additions comment withdrawals comment
[11:44] and referrals?
[11:45] Seeing none the consent agenda, approval of the manager's
[11:53] purchasing authority.
[11:55] Mr. Manager?
[11:57] >> Well, it is consent.
[11:59] If you would like, I can speak to it if you want.
[12:02] It's only one item on consent.
[12:03] This is our annual-- any contracts that we think might
[12:08] reach the $20,000 threshold in the next fiscal year,
[12:11] we get a pre-approval for those.
[12:13] It may or may not.
[12:15] It is based on budget.
[12:16] But just to avoid any any procurement issues,
[12:19] we bring those to your attention.
[12:21] >> Thank you.
[12:22] Is there a motion to approve the consent agenda?
[12:25] It has been moved.
[12:27] Is there a second?
[12:28] It has been moved and seconded.
[12:30] This is a voice vote all those in favor say aye.
[12:35] Passes 5-0.
[12:37] Now the budget hearing resolutions.
[12:42] I think we usually take R7A and R7B together.
[12:49] Do we need to read any special language to hear those?
[12:54] >> Have the clerk read the item, and then that'll allow me to do
[12:57] the Powerpoint that runs the entire budget.
[13:00] It will encompass all the other items,
[13:02] and then we'll come back and vote on them one by one.
[13:05] >> Okay, perfect.
[13:08] Mr. Clerk.
[13:10] >> Resolution of the village of Bal Harbor Village reducing
[13:13] the proposed military of the fiscal year commencing
[13:15] on October 1st, 2026 through September 30th, 2027,
[13:20] pursuant to section 20.065 Florida statute providing
[13:24] for conflicts, providing for severability and providing
[13:28] for an effective date.
[13:29] >> Thank you.
[13:31] The next one?
[13:33] >> A resolution of the Village Council approving and adopting
[13:36] the tentative budget and Capital improvement plan for Bal Harbour
[13:41] village for fiscal year 26, 27, providing for expenditures
[13:45] in funds, providing for conflicts,
[13:48] providing for severability, and providing for an effective date.
[13:52] >> Thank you.
[13:54] Mr. Manager?
[13:56] >> Mr. Mayor, thank you.
[13:58] Can we fire up the Powerpoint?
[14:00] Great.
[14:01] Some of this we presented in July
[14:06] when you set your tentative millage.
[14:08] But I think it still warrants us to go through it
[14:13] and set the record.
[14:13] You can stop me at any time, but hopefully you
[14:18] have seen this in the past iterations.
[14:19] We try to use the same format.
[14:21] It will get you through and we can open it up for conversation.
[14:25] We have a new cover this year.
[14:27] It's our 80th anniversary.
[14:29] I hope you like the shot.
[14:30] It's a really spectacular shot of our community
[14:32] and the wonderful event we had on July 4th.
[14:37] I'm going to do this a little faster than normal
[14:40] from what we did in July.
[14:41] This is similar.
[14:42] This is the budget process.
[14:44] It does not start today.
[14:46] It actually starts back in February
[14:48] when we first get together during our retreats
[14:51] and you give us a lot of policy guidance and prioritization.
[14:54] The important one is in July you did set a tentative millage.
[14:58] And you set it at a rate that allows
[15:02] for all of our level of service obligations in addition,
[15:08] you set a tentative increase to the Legal Defense fund
[15:12] and Application review fund that was established
[15:14] a couple of years ago.
[15:16] In light of the increase or the expected increase
[15:21] in real litigation costs in this coming fiscal year.
[15:25] In September so we have two hearings.
[15:29] This is the first of two.
[15:31] We'll be back again on September 15th for our second hearing
[15:38] as part of a regular council meeting.
[15:39] Today will be a budget and attentive millage.
[15:41] That locks in place.
[15:42] Year budgeted for the current fiscal year,
[15:45] which begins October 1st or as soon as we start the fiscal
[15:48] year.
[15:48] Then we start the auditing process
[15:49] for the current fiscal year.
[15:51] It's always a continuous Cycle.
[15:54] We also budget two budgets every year.
[16:00] We pass an operating budget and we also pass the capital budget.
[16:04] Trying to see where it's the best way to read it.
[16:08] Our budget is comprised of three separate funds.
[16:11] It is our general fund.
[16:12] It's our special revenue fund, which in this instance
[16:15] is the reserve tax that is collected
[16:17] from hotels and restaurants.
[16:19] And then our utility fund, which is what governs and operates
[16:23] our utility, water, and sanitary sewer.
[16:26] Also we have a fund that we maintain for the gated area
[16:30] to collect the assessment and provide resources
[16:33] to the security and landscaping.
[16:35] Everything we do is predicated on the Bal Harbour
[16:40] experience you set in place several years ago.
[16:43] I'mthrough not going to read through the words for you.
[16:48] But you see it.
[16:49] It's in the agenda.
[16:50] This is the fundamental piece of our operating budget
[16:54] is the valuation that we receive from the property
[16:58] appraiser every year.
[16:59] We get that on July 1st.
[17:02] That is the sum of the value that they estimate or dictate
[17:06] as of December 31st of the prior calendar year.
[17:12] So any property that came online after December 31st is not
[17:16] captured in this.
[17:18] This captures existing properties
[17:20] plus new construction.
[17:23] Generally speaking this year we had about a 4.6% increase
[17:27] in total valuation, which would translate to the millage
[17:34] and therefore what we would expect for the coming year.
[17:37] This is just a reflection of all of the jurisdictions.
[17:41] One of the things you can see here,
[17:43] this is county wide property values went up 5.4%.
[17:49] Slightly more than what we experienced.
[17:52] Percentages are a function of the values.
[17:56] Our values are much higher.
[17:58] They might be a little bit higher.
[18:00] In July we set the tentative millage.
[18:03] On our July Council meeting.
[18:06] And you can see here a history of our millage
[18:08] over the last several years.
[18:11] It remains consistently flat.
[18:13] At 1.9654 for many years.
[18:16] And then in 2025, you see the little yellow increment.
[18:21] That was the increment that we first
[18:23] established for that legal defense fund that I mentioned.
[18:25] We kept it at the same rate for two years.
[18:28] In 27, as we now anticipate significant run up
[18:33] of our expenses from a legal perspective,
[18:36] in July, unanimously voted to increase that substantially
[18:42] to make sure we had proper funding
[18:44] and we also had the proper resources to do the things
[18:50] that this community has asked you to do,
[18:53] which is defend the community at any cost.
[18:55] When you apply that proposed tentative millage of 2.51
[19:02] in relation to other communities in Dade County,
[19:07] this is a list of how the communities in Dade County land.
[19:10] You will see that we have crept up
[19:13] a little bit, which is not necessarily what
[19:15] you would want to be doing.
[19:17] But if you just look at the 1.9654, which
[19:19] is your operating budget, you would be the third lowest.
[19:25] Treat this additional millage increment as a temporary thing.
[19:29] We don't expect it to last forever.
[19:31] But we want to make sure that we have the funds necessary.
[19:35] We segregate those funds.
[19:37] Those are exclusively for that purpose.
[19:41] What do I have next?
[19:45] Let's make sure this is working.
[19:47] I'm sorry.
[19:51] This is an analysis of the values that we got on July 1st.
[19:55] You can get a sense of what is driving that 4.6% increase.
[19:59] Divided by single family, which is--
[20:03] gated community, of course.
[20:05] Condominiums, Multi-families along the rest side,
[20:08] and commercial.
[20:09] You'll see that primarily where the number is incrementing
[20:12] not just this year but in prior years is in your condominiums,
[20:16] primarily the east side of commons, where the greatest
[20:20] bulk of the value is.
[20:21] So it stands to reason.
[20:22] You can also see year to year that the gap
[20:25] between prior month or prior year is significant as well.
[20:31] That is growing primarily on the east side.
[20:35] This is another way to look at it.
[20:37] This is looking at the value of property just versus taxable.
[20:45] This reflects a little bit better the impact
[20:47] of homestead exemptions and other save our homes reductions.
[20:51] You can see that the darker versus the shaded
[20:56] is the difference.
[20:58] In instances you see how there's significant savings
[21:01] along the single family on the condominiums.
[21:04] Though not dramatic, this is basically
[21:07] telling you that our homesteaded properties are generally
[21:10] about 16% of our total value.
[21:14] When we hear about the conversation
[21:17] about this amendment three that is up in November
[21:21] and how it will affect additional increase
[21:24] to the homestead exemption, that is true.
[21:27] It'll be going up to 215,000 if it is approved.
[21:31] But there are fewer homes or condos
[21:35] that are homestead exempted in Bal
[21:40] Harbour than other communities.
[21:42] Second homes, LLCs, and other things that
[21:45] do not have the luxury of being able to be homesteaded.
[21:50] This is a basic summary.
[21:53] As you saw in July, our current 26 rate
[21:56] is 2.143 as proposed for this coming year is the 2.145132.
[22:04] That generate $18,351,000 of tax Levy.
[22:13] Broken up in this manner.
[22:14] The target was to get 4 million from the Defense fund
[22:16] and the 14,000,003 is what our general fund com general
[22:19] operations for the given year will cover.
[22:25] To the Legal Defense fund, this is why you established it.
[22:29] And so when you look at the summary of all funds, operating,
[22:34] reserve tax, the utility fund and the gated community,
[22:38] you can see broken up on the far left
[22:41] is the total operating fund of $38 million
[22:44] broken up by those funds.
[22:47] The second column to the right the first column to the right
[22:51] where you get to --
[22:53] I'm sorry.
[22:54] The third column.
[22:58] This column here where you see it goes up to 69 million,
[23:02] that is operating in capital.
[23:05] That is an unusually large number for us.
[23:08] However, this is the year where we anticipate
[23:11] to be in construction both for the jetty and potentially
[23:15] the trawl.
[23:16] And as a result, we need to have fully funded
[23:19] the budgets for those purposes.
[23:23] That is why that capital line is significant.
[23:26] Next is the $4 million for the defense fund
[23:30] for a total of $73 million in our overall approved
[23:34] expenditures for this coming year.
[23:36] Future years you won't have it at this same number
[23:41] because you don't have the same nearly $80 million
[23:44] worth of capital projects that are earmarked for the coming
[23:47] year.
[23:48] When you look at the operating value, the level of service,
[23:54] day to day operations of the village and what they do,
[23:57] it takes a village like this.
[23:59] General fund a 24 million.
[24:01] Resort tax is about six.
[24:02] The water and sewer fund is about six and a half.
[24:05] And the security and landscape is one and a half.
[24:07] Pretty consistent to what you've had in years past.
[24:10] You can see the pie as it breaks out.
[24:14] This is now broken down by resources.
[24:17] You can see where the revenues are coming up and down.
[24:21] The largest increase is your ad valorem, 4.6%.
[24:25] As I mentioned earlier.
[24:28] And the below the line is capital moneys coming in
[24:32] and the $4 million for the defense fund for a total
[24:35] of $20 million increment.
[24:39] This is by type.
[24:42] That chart in a chart format.
[24:44] Then this is what is driving at.
[24:47] It's $1 million increase in the general fund.
[24:50] Primarily the ad valorem as I mentioned,
[24:52] some solid waste, recreational program fees
[24:55] that are being added, investment income,
[24:58] and the permits and licenses because we do
[25:01] believe that next year is going to be
[25:03] greater activity in the building department due to tenant
[25:07] improvements and the shops that will be upcoming as well
[25:11] as revise anticipated increase.
[25:14] This is the expenditure side.
[25:17] On the expenditure side this is the key departments
[25:20] that you'll see and generally speaking
[25:23] you are in the ones and twos, maybe up to four and five,
[25:27] and average of 4.4.
[25:29] The two large numbers there is the building that goes by 13%.
[25:35] That is the additional day of inspection
[25:38] that we want to add on Fridays that we don't do today.
[25:41] We're trying to do that because we anticipate the increased
[25:44] workload.
[25:44] It'll be paid by permits.
[25:46] The increased workload, we want to add firstly --
[25:51] don't want to adversely affect the residents.
[25:54] We want to make sure all five days are
[25:56] available for inspections.
[25:57] And so that is an increase.
[25:59] The other increase is in IT.
[26:03] It's a large percent at 11% but not a large number.
[26:06] This is additional cybersecurity software
[26:09] that we're being recommended to add
[26:11] as part of the state requirements
[26:13] and enhancement on cybersecurity.
[26:15] Otherwise you will see that the other takeaway here is --
[26:20] obviously the police department is the largest element
[26:22] of your expenditure.
[26:25] This is standard in most communities of our size.
[26:29] The bulk of your expense is public safety.
[26:33] It's a nearly $10 million budget in the police department.
[26:37] The same chart but just in pie.
[26:40] This is what is driving the increase.
[26:43] The million dollars is -- as you know we're in the third year
[26:47] of our collective bargaining agreement with the police
[26:49] department.
[26:50] So we are covering the negotiated 4% cost
[26:54] of living adjustment and any required pension contributions,
[26:58] primarily from the Florida Retirement System.
[27:02] On the limited discretion side, that's
[27:03] those things we don't have a lot.
[27:06] On the enhancements, the things where
[27:08] we have some level of discretion,
[27:09] you'll see the additional inspection day for building.
[27:13] As well as coming out of reserves
[27:16] a software upgrade to allow for electric permit review.
[27:20] We have program enhancements in the Parks Department,
[27:25] additional offense, activities as we
[27:27] start to level out what are the programs that
[27:29] are residents really enjoying.
[27:31] We want to expand those and make more of those.
[27:34] You'll see something that the council asked
[27:36] us to consider is the opening of the fitness gym earlier
[27:42] in the day so that we can allow for folks
[27:44] who go to work to be able to use that facility.
[27:47] We have funded that.
[27:49] As I mentioned the cyber security software
[27:52] that we need to make sure we are compliant with the state.
[27:56] In summary you'll see that the budget
[27:59] covers our ongoing services, all our obligations.
[28:05] Funds all of our fiscal policy improvements
[28:09] come at the various reserves that we set aside
[28:12] for IT, for fleet, for millage stabilization and the like.
[28:18] It captures the capital projects that we have committed to,
[28:22] and then ultimately the enhancements,
[28:26] what I just commented for you.
[28:28] And it is basically a 4.4% increase
[28:32] in your overall spending, which is slightly
[28:34] under the 4.6 of the revenue.
[28:40] On the Resort tax fund side, you have seen this chart before.
[28:43] I've tried to show you that there are generally
[28:46] four buckets that we use for resort tax.
[28:48] There are the tourism and marketing efforts
[28:51] associated with enhancing the community's
[28:53] effort at destination and attracting primarily the payers
[28:58] that pay for the resort tax.
[29:00] The middle bucket is those events, activities, July 4th,
[29:05] Museum access cards.
[29:07] Things that are available to our residents and our guests,
[29:13] and event perspective.
[29:15] The largest of the buckets is the beautification, maintenance,
[29:21] litter control of the beaches, the public elements
[29:23] of our community which enhance the tourism
[29:27] experience in our community.
[29:29] And this first - fourth bucket that
[29:35] covers the Beach Ranger and the Marine Patrol
[29:37] and the police associated with that.
[29:39] While it is showing an arrow down from this year,
[29:41] it's not that we're reducing our resources.
[29:44] We had two retirements.
[29:46] One of whom was a very senior officer in that unit.
[29:49] And so while it is still the same four positions,
[29:53] the salary attrition is reflected.
[29:56] It should not be reviewed as we are reducing our commitment
[30:00] to the public safety there.
[30:03] This shows it in chart form.
[30:06] You can see how the ups and Downs are happening
[30:08] in each of those four buckets.
[30:10] One of the things that we are trying to be careful about
[30:14] is the revenue side of the equation
[30:16] because we did see reduction in at least one restaurant.
[30:22] We anticipate that that will get filled.
[30:24] But we don't know when.
[30:26] There is talk of a pop up or some other activity
[30:31] that will backfill it maybe not at the same level,
[30:35] but still, same token.
[30:37] There is interest and other things that are coming in.
[30:40] And the will be coming on December.
[30:46] Water and sewer rates, this is where we
[30:48] get a little bit of bad news.
[30:50] We buy our water from Miami-Dade County.
[30:54] And then the sewer goes through Miami Beach,
[30:57] and therefore we have to pay Miami Beach and Miami-Dade
[31:00] County.
[31:01] I think we told you last year 0- I
[31:08] know we did that Miami Beach is going
[31:09] to increase its surcharge dramatically last year.
[31:11] And we were able to offset that by splitting it over two years.
[31:17] This is year two of that.
[31:20] And so while we are getting a bit of an increase
[31:23] on the water side, when you see water and sewer from Miami-Dade
[31:27] County, our water rate is not really affected dramatically.
[31:31] It's a $3 a month adjustment based on what they are charging
[31:35] and our cost to continue to operate.
[31:38] On the sewer side you're going to see a significant increase
[31:42] on the per month, about $30 to the average user per month.
[31:47] And this is a result of entirely, if you can see here,
[31:51] this surcharge here goes from $1.18 to $2.36
[32:00] per thousand gallons of sewer.
[32:03] That's what's driving it.
[32:04] There's a significant change as well
[32:05] though not as much from Miami-Dade.
[32:07] Our increase is the 3% that is basically CPI
[32:11] that we do, bring you to this increase of going
[32:15] from 12 to 1450.
[32:16] It ends up being in a blended 20% increase,
[32:20] but you see where the significant aspect is.
[32:26] It has not moved, but it still doesn't make it any softer.
[32:36] This is the operating budget for the utility.
[32:41] As I mentioned, it is pretty basic, continuing our service.
[32:44] There's a couple of enhancements that we
[32:46] are doing to the sewer lift stations,
[32:49] adding additional pump, a new valve, and recording
[32:52] of the valves to make sure there's no infiltration.
[32:55] It's a pretty basic as far as what we are doing.
[32:58] We continue to do -- we approved last year a meter replacement
[33:02] cycle over three years.
[33:03] This would be year two.
[33:05] We are funding that for this year.
[33:08] There's not much really left in the capital utility.
[33:12] It's only about $1 million of the projects that are going on.
[33:17] We have pretty much funded the other work.
[33:19] That should get us through the project seven
[33:21] as I've mentioned to you before.
[33:23] When we get to the security and landscape,
[33:27] you set tentatively the weight for the assessment
[33:31] for the security and landscape.
[33:34] At that time the Civic Association
[33:36] requested that it be advertised and tentatively set at 8500.
[33:41] For the top line, I'm not going to remember
[33:44] the unimproved property or the prior recreation facility,
[33:47] but it was set at 8500 and the others are derivatives of.
[33:52] After further discussions with the budget and working
[33:54] through with the gated community representatives,
[33:56] they have asked that you set it at 7500, and then
[34:01] the commensurate reductions to the improved and private
[34:05] facilities.
[34:06] This is a $1,000 decrease from what was advertised.
[34:10] But it remains a $1,000 increase from the prior year.
[34:15] The representatives from the Civic Association are here.
[34:19] They can speak to that at the appropriate time.
[34:24] But I'm just working through.
[34:25] On the budget side, those resources
[34:27] plus interest earnings and other income
[34:29] gets you a budget of nearly $2.8 million.
[34:32] They have become quite active in their capital program as well.
[34:37] And so this will fund a major lighting replacement
[34:41] program that was requested.
[34:43] It is something that you have to have the full funds.
[34:48] We are actually facilitating that by also forwarding funding
[34:52] from reserves with an expectation
[34:54] that it'll be replenished after the out years.
[35:00] But otherwise, it will continue to do the operations
[35:02] that they are engaged in.
[35:03] I think they are satisfied with this budget,
[35:05] but they will be here to speak to it as well.
[35:08] And then our capital budget, there's a lot of numbers here.
[35:12] You approve a five year capital plan,
[35:15] but you only adopt the first year of that five years.
[35:19] Really look at the outer column of 2027 as proposed.
[35:23] As you can see, the big numbers are reflected here as
[35:28] to do with these two numbers plus the 4.5 million
[35:31] from resort tax.
[35:33] That is the two large numbers associated with the jetty
[35:36] and village hall.
[35:38] Those are the additional appropriations
[35:40] that we need to fully fund as we anticipate.
[35:45] And we are going into bidding for those two main projects.
[35:49] The rest of it is pretty stable and consistent with what
[35:54] you have seen in the past.
[35:56] This is your five year plan.
[35:58] Again, the column that is operative
[36:01] is the 27, which is this one.
[36:06] But you can see there's some prior expenditures
[36:10] along the way.
[36:11] You'll see here the two numbers, 12 and 14
[36:12] added to the previous numbers to get to 39 and 38
[36:18] on those two capital projects.
[36:21] The expenditures of those will begin next year
[36:23] and over the course of the construction of the jetty
[36:25] we anticipate to be two years from commencement.
[36:28] We are hoping we could commence in early calendar year.
[36:34] Village Hall is further in the year,
[36:37] but within the fiscal year.
[36:41] And so if for some reason that's, then any funding
[36:44] that has been appropriated will just
[36:45] be carried forward into the following year
[36:48] and you won't need to reallocate those dollars.
[36:54] You I think in the past have seen this.
[36:57] This is the breakdown of the jetty funding and expenditure.
[37:04] We are at 39 million base primarily in this instance,
[37:09] except for this number here, which is previous general fund
[37:11] surplus.
[37:12] Everything else you'll see is non-tax ad valorem funding.
[37:19] This jetty project is primarily funded
[37:20] entirely double almost entirely out of non property tax
[37:25] funds, which I think is something
[37:28] we should be very proud of.
[37:31] Let's see where the bids come in.
[37:33] And then village hall, we are still early.
[37:36] We're still in the design and development phase.
[37:38] But we do anticipate having permeable drawings
[37:42] in the early calendar year with bidding
[37:44] to take place over the summer.
[37:45] And we should hopefully calm if all goes well,
[37:49] be able to award contract and give notice to proceed before
[37:53] October 1st of next year.
[37:55] That is how that breaks down and where
[37:57] the sources of funds on that is.
[38:02] The other thing I would say is just
[38:04] I want to thank Claudia for the support you give us
[38:08] and the direction you got us with.
[38:10] Claudia and her team in the finance department as well as
[38:13] all the department heads and everybody
[38:16] who has been involved in putting this together.
[38:19] It doesn't start today.
[38:20] It starts in February.
[38:21] And then also the Budget Advisory Committee
[38:23] volunteer their time and go through
[38:27] and I think a pretty good thorough way.
[38:30] They get all of the access they wish to have.
[38:34] They spend a lot of time on the right things,
[38:36] the bigger department, the bigger expenditures.
[38:40] And so Nika Logan, the chair of the budget advisory Committee
[38:47] this year is here.
[38:54] >> Thank you.
[38:55] Before I open it up for public comment,
[38:56] is there any questions from the Council?
[38:59] >> I have a question.
[39:07] >> Is your mic on?
[39:11] >> Yes, hello.
[39:12] If you could just clarify and go to the budget changes,
[39:19] general fund.
[39:23] You mentioned the building, a couple of items in the building.
[39:28] But the budget is up 13%, which is about 320,000.
[39:36] You outlined the staffing, 114, and software, which I guess
[39:44] is 100.
[39:44] Recreation other items falling to other.
[39:47] I'm wondering if there's another large item that
[39:49] was affecting that change.
[39:52] >> Do you guys have that?
[40:09] >> The remainder I'm sure is the 4% COLAs --
[40:14] I don't want to say that's all.
[40:16] Every department assumes the growth of pension and health.
[40:19] But is there any other unique item
[40:22] in building this year other than the software
[40:24] and the additional hours for--
[40:32] >> Not any signifcant --
[40:35] >> COLA is about -- so that's probably it.
[40:41] >> No, no other significant items.
[40:43] >> Thank you.
[40:44] >> We'll give you the exact.
[40:45] That to me seems like the right number is the employee stuff.
[40:49] >> The other question was on the resort tax fund,
[40:53] you mentioned obviously the safety going down.
[40:55] But obviously not reducing of services.
[40:57] But special community events as well down,
[41:00] what is the reason for that?
[41:04] >> Those are due to the one time items last year.
[41:09] >> This year we had significantly increased for 26
[41:13] due to the higher expenditure of the fireworks, for example,
[41:17] and the 80th anniversary.
[41:18] When those come down, we don't need to maintain it
[41:21] at the same level.
[41:22] That is why it's reflected as a down.
[41:24] What we'll do for this year, 27, is comparable
[41:28] at least if not better than 25.
[41:36] That's all I had.
[41:38] >> Thank you.
[41:40] >> Questions -- chairman Logan, would you like to give
[41:43] your committee's report?
[41:52] >> Nika Logan, I'm the chair of the budget committee.
[41:55] Do you need my address?
[41:59] 64 Camden.
[42:01] As always, the staff is very well prepared
[42:04] in presenting the different departments
[42:06] and the enhancements.
[42:07] We use that opportunity to ask them a lot of questions .
[42:13] When we get to this point of the year,
[42:16] we have whittled through all of the various things
[42:20] and are confident with what the staff is presenting.
[42:25] >> Thank you.
[42:27] Any questions from the public regarding either the budget
[42:30] or the millage rate?
[42:31] This is the public hearing.
[42:34] >> You can't do it that way.
[42:38] Because this was just this presentation.
[42:39] We'll open up R7A.
[42:47] >> We already read that.
[42:48] >> So let me read my final.
[42:49] I need to read this before we go into the actual budget
[42:53] public hearing.
[42:55] Your consideration tonight for Bal Harbour
[43:00] villages the proposed millage rate for FY 26, 27.
[43:03] A millage rate of 2.5132 mills is proposed, which is --
[43:08] this is the hard part -- $2.51, 3000/200 or thousandths
[43:13] or whatever that works out to be.
[43:15] $2 and 51.3 $0.02 per $1,000 of assessed property value.
[43:25] The state defines rollback rate is 2.0252 Mills.
[43:27] The proposed millage rate is 24.10% higher than the rollback
[43:34] rate.
[43:34] This rate is consistent with your approval at the July 13th
[43:39] Council meeting.
[43:40] >> Thank you.
[43:42] With that being said, are there any members of the public
[43:45] that wish to address the Council on the millage rate?
[43:54] >> R7A first.
[43:56] >> I'm going to close public comment.
[43:57] Seeing none.
[43:58] I would just like to add, like George said,
[44:03] this process started back in February.
[44:05] We realized that this is not an ideal increase.
[44:10] 24% is significant.
[44:16] But we heard this community loud and clear when we met in April.
[44:18] Really this is all stemming from the additional funding
[44:22] that we are putting towards negation.
[44:25] It is something where we took your wishes very seriously
[44:30] and we really are ready to continue to fight.
[44:41] And we're lawyering up, as they say.
[44:43] And we are doing all this to protect the quality of life
[44:45] that we all love and enjoy.
[44:46] That is why we call Bal Harbour home.
[44:52] So I'm hoping this is a short term thing,
[44:54] but it is a big rate.
[44:55] We realize that.
[44:56] It's a big increase.
[44:57] And we are doing it for the greater good as they say.
[45:00] Those are my comments.
[45:02] Anything else before we get into the voting?
[45:10] >> No.
[45:11] >> Okay.
[45:11] This is just a voice vote.
[45:12] Is there a motion to adopt the proposed military
[45:13] as read by our manager?
[45:15] >> I'll make the motion.
[45:19] >> It has been moved.
[45:20] Is there a second?
[45:20] Moved in second and.
[45:21] Voice vote all those in favor, say aye.
[45:26] Opposed, none.
[45:30] Passes unanimously 5-0.
[45:33] R7B, this is now the adoption of the budget
[45:36] that George just went >> This is the expenditure side of what
[45:43] we were talking >> Is there any public comment on the budget as
[45:51] proposed?
[45:53] Seeing none, going to close public comment.
[45:55] Is there any council discussion?
[45:56] Do I have a motion to -- sorry.
[46:07] >> Jose Viton, 168 park drive.
[46:11] Quick and maybe you've discussed it before I got here very late.
[46:14] In every board meeting that you listen
[46:16] to on every public company, every private company as well,
[46:19] the theme of the last two years has been AI.
[46:25] What are you guys doing to make things
[46:29] more efficient, cost effective?
[46:31] How are you leveraging AI so that the admin rates, all
[46:37] of the budget line items that can be impacted positively
[46:41] or negatively, reduce the cost?
[46:50] What are you doing proactively to make sure that all those line
[46:53] items that have one, 2% ?
[46:57] Police love the 2% increase.
[47:00] On all the other line items, what
[47:02] are we doing to reduce those numbers with AI
[47:09] that every other institution is being tasked with?
[47:11] >> Thank you.
[47:14] Are there any other comments before we can close
[47:17] and then we can address the individual questions?
[47:19] No further comments.
[47:20] Going to close public comment.
[47:22] Mr. Manager, do you want to take that?
[47:29] >> I can.
[47:31] With AI, it's still kind of new, particularly
[47:34] in the government sector.
[47:35] We have been meeting with a number of AI teams.
[47:36] Where there is some interest in focus where you might actually
[47:39] see some difference is in the building plans, review,
[47:42] inspection, things like that.
[47:44] When you look at the budget, if you really dive deep
[47:47] into the budget, the propensity of this budget
[47:50] is your staff cost.
[47:52] There isn't a lot of other things beyond staff.
[47:56] The staff comes all the obligations, fringes, pensions,
[47:59] all that.
[48:01] We continue to try to keep it as lean as we can,
[48:04] and we are not --
[48:05] for example we're not proposing any increases
[48:11] to FTEs or anything like that.
[48:14] Where we can we will.
[48:15] But when you look at what you're engaged in right now
[48:17] for at least the foreseeable, it is heavy capital
[48:20] and you need bodies to manage and do those projects.
[48:25] It's public safety.
[48:27] We're not going to reduce that.
[48:28] We're actually trying to enhance that to the degree we can.
[48:31] The building department does create some opportunities.
[48:34] But in that instance, it is not a tax thing.
[48:37] It's a permit thing.
[48:39] And so you collect the permits for that.
[48:43] The other thing is contractual.
[48:47] Our contracts do have built in KPIs sometimes in escalators.
[48:49] We'll use those opportunities to bid that out and see
[48:52] if we can reduce costs.
[48:53] But what we found recently is that the cost goes up
[48:56] because they are air tight to the market.
[49:01] And so we are exploring AI.
[49:03] Every conference that is a government centered conference.
[49:06] We have a million different AI vendors.
[49:09] But at the end of the day, they are not quite there yet.
[49:13] On the way you can actually substitute AI for bodies.
[49:16] And so that is where I think you'll
[49:18] start to see the real savings.
[49:19] But they are not there yet.
[49:23] >> Thank you for that.
[49:26] And I appreciate that comment.
[49:27] It's very relevant.
[49:29] Do I have a motion to approve the operating budget?
[49:33] >> Yes, make a motion.
[49:38] >> Is there a second?
[49:38] It has been moved and seconded.
[49:40] All those in favor, say aye.
[49:47] Opposed, none, 5-0.
[49:50] Okay, R7C, Mr. Clerk.
[49:54] >> R7C, a resolution of Bal Harbour village relating
[49:56] to the provisions of security landscape services facilities
[49:58] and programs in the gated residential section of Bal
[50:05] Harbour village, establishing rate of assessment,
[50:07] imposing security and landscape services assessments against
[50:08] assessed properties located within the gated residential
[50:11] section of Bal Harbour Village, Florida,
[50:17] approving the assessment confirming the assistant
[50:19] resolution and providing an effective date.
[50:20] >> Thank you.
[50:21] Mr. Manager?
[50:22] >> Yes, I touched on it in your earlier comment but this is
[50:27] the actual assessment.
[50:28] This is the second meeting of this.
[50:30] You passed it initially on first hearing.
[50:32] This establishes the main revenue source
[50:35] for the gated communities special assessment.
[50:40] It was originally set at 8500 in June at the request of the Civic
[50:47] Association, they are asking us to set it at --
[50:56] 3750 per each unimproved property and $30,000
[51:00] for the private recreational facility, the Marina.
[51:04] This coupled with other revenues is
[51:08] what funds the budget that you just
[51:10] approved for the Civic Association
[51:12] and the gated community.
[51:14] And it is a reduction from the prior tentative.
[51:19] The other thing I want to be clear that everybody knows
[51:22] is we are also as part of the budget
[51:24] forward funding their lighting program, which really
[51:27] reduces a lot of the reserves.
[51:29] We've committed to making sure that those focus on getting
[51:32] replenished at the proper time.
[51:35] >> Any questions from council before we open it up for public
[51:40] comment?
[51:41] Is there anyone from the Civic Association
[51:43] to address the Council or the public?
[51:54] You can approach the mic.
[51:56] Please state your name and address for the record.
[52:00] We need you to say it into the mic.
[52:04] >> 128 Camden.
[52:06] I come much to the meetings.
[52:11] So I'm trying to get knowledgeable.
[52:13] Like landscapes and insecurities that
[52:16] are based on decisive properties.
[52:18] >> We'll address questions once public comment is complete.
[52:25] Is there any other public comment
[52:27] on the security landscape assessment?
[52:32] Seeing none, I'm going to close public comment.
[52:36] Does someone want to address that?
[52:38] >> If you'd like, I can address it really quick.
[52:41] When an assessment is established,
[52:44] you need to have a study done to determine the direct benefit
[52:50] implication of the assessment.
[52:52] This assessment was established in 2012.
[53:02] And the study that was done and the methodology
[53:04] that was established was a per unit methodology.
[53:06] If the gated community of the assessment
[53:07] wished to do a different methodology,
[53:10] a study could be done and yield a price
[53:16] preferred, linear frontage, or different methodologies exist.
[53:19] But that would be something that we
[53:21] would task the gated community association to conduct
[53:25] that assessment study.
[53:27] Our legal department would review
[53:28] to make sure that it meets the legal requirements
[53:31] of an assessment.
[53:32] And then it would need to be approved
[53:35] before the end of this calendar year for it
[53:38] to be eligible next year.
[53:40] That is something that the civic Association I think in the past
[53:44] has considered but not really -- at the end of the day they felt
[53:48] this may be the fairest and best way.
[53:51] And so that is what has been done.
[53:53] >> It seems like there is interest to address this
[53:58] question from the Civic Association.
[53:59] So please approach.
[54:01] >> It's a great question.
[54:06] We did look at it.
[54:07] We actually had a study done.
[54:08] And we brought it up in a meeting to the gated community.
[54:17] I can't remember how many people showed up,
[54:19] but I'd be surprised if it was more than two handfuls.
[54:22] There was some back and forth.
[54:25] But honestly, we couldn't really get any buy
[54:29] in for a significant change.
[54:36] But we have reviewed this specifically.
[54:39] Happy to address it again.
[54:40] But I agree with George.
[54:42] After going back and forth and reviewing different ideas,
[54:46] there might be some changes, but the changes
[54:52] happen at the very extremes of the sizes of the homes, if you
[55:02] will, or the properties.
[55:03] If I remember correctly, like 80% or so of the homes,
[55:08] any change would not be really impact them.
[55:10] There would be some major changes
[55:11] on the ends on the barbells if you will of the properties.
[55:19] >> Thank you.
[55:21] Okay, so we have closed public comment on the security
[55:23] and landscape assessment.
[55:24] Is there a motion to approve the budget?
[55:28] >> I'll make the motion.
[55:33] >> Is there a second?
[55:34] It has been moved and seconded.
[55:35] Voice vote all those in favor, say aye.
[55:44] Opposed, none.
[55:46] Passes unanimously.
[55:48] R73, solid waste assessment, Mr. Clark.
[55:51] >> A resolution of Bal Harbour Village relating
[55:55] to the collection and disposal of solid waste and recyclable
[55:58] materials, describing the method of assessment solid waste costs
[56:03] against assessed property located within the Bal Harbour
[56:09] village, establishing assessment,
[56:11] imposing solid waste assessments against assessed properties
[56:12] located within Bal Harbor village,
[56:14] approving the assessment roll, confirming the initial
[56:17] assessment resolution, and providing an effective date.
[56:20] >> Thank you.
[56:23] Mr. Manager?
[56:25] >> Similar to the gated community assessment,
[56:27] the village has another assessment which is to fund
[56:31] the solid waste disposal and >> I see your hand.
[56:39] Will get you as soon as the manager finishes.
[56:41] >> The assessment is supposed to be $344.89 for each dwelling
[56:48] in a multi-family residential establishment.
[56:50] And $737.13 for each single family residential.
[56:55] This is unit based.
[56:57] It is not based on the amount of garbage that
[57:00] is collected or disposed of.
[57:07] Thsi -- this would generate about $993,000.
[57:12] This goes to fund the contract we
[57:15] have with our outside waste hauler and collector
[57:17] for the fiscal year.
[57:18] It is a slight uptick but generally speaking
[57:22] it is the CPI inflation that we have in the contract.
[57:30] >> Perfect.
[57:32] Buzzy?
[57:33] Councilman Sklar, would you like to say something?
[57:35] >> What do we pay as part of that contract for the recycling
[57:37] portion?
[57:39] >> Oh boy.
[57:42] Buzzy, I'm going to have to get back to you.
[57:45] I don't have that broken out in itemized.
[57:46] I can either LTC or call you tomorrow, but I don't have that.
[57:55] >> (indiscernible) second reading.
[57:59] >> Yeah, second reading on this.
[58:00] Do you have it?
[58:09] >> Yeah the rate that we are negotiating is a combined rate.
[58:11] They do not split it out.
[58:18] What we do have is three days of solid waste
[58:20] and two days of recycle.
[58:23] So there is no real split on the dollars, just the
[58:26] >> There has to be some sort of split.
[58:27] Because if we didn't want recycling,
[58:29] it's going to be a different number.
[58:32] The only reason I'm asking is because recycling is not really
[58:37] working, especially in the buildings.
[58:39] There is so much contaminant that
[58:41] goes into those recycle bins that it can never actually
[58:45] go to true recycling.
[58:47] I'm sure the same thing is happening
[58:49] inside the gated community where there is so much contaminants
[58:52] inside the recycling bins that it's not truly
[58:54] going to recycling.
[58:55] So we're paying for a service that is not even getting
[58:59] the proper use out of.
[59:01] I want to know what we are paying for that service.
[59:04] If we don't have the answer, obviously we
[59:11] don't have the answer.
[59:12] >> I don't have it itemized.
[59:12] What I'm hearing is it's part of a double rate.
[59:14] We can go back and try to recalculate that.
[59:16] If that is something that the Council wanted
[59:18] to explore amending the contract or changing the rate,
[59:22] that is a contractual thing.
[59:24] But if you set this assessment at a number,
[59:26] if it doesn't get spent, it just drops to your fund balance.
[59:29] But it is not a number I can off the top of my head
[59:33] tell you what it would be like.
[59:36] >> While you're up there, based on Councilman Sklar's question,
[59:48] I know this came up a few years ago.
[59:50] There was some sort of I don't want to say audit that was done
[59:52] but some sort of -- we got on how much recycling we actually
[59:56] produced.
[59:57] >> I remember that.
[1:00:00] It was a minimal amount.
[1:00:02] That's why I'm bringing that up again because it
[1:00:04] was a minimal amount that we actually put into recycling that
[1:00:07] actually goes to recycling.
[1:00:09] If somebody puts a pizza box in there
[1:00:12] and there's grease in the pizza box,
[1:00:14] that contaminates the recycle bin.
[1:00:16] That's why I was asking the question.
[1:00:18] >> We can request the volume from waste connections for both
[1:00:22] recycle and waste.
[1:00:24] That's something that we can get.
[1:00:27] As far as volume.
[1:00:30] >> At what point in the recycling process do they
[1:00:34] determine that it was contaminated?
[1:00:35] Because I know it has to go from a bin in a garbage
[1:00:39] room on a floor of a condominium down
[1:00:40] to some sort of central recycling container that then
[1:00:47] gets pushed out to the pickup when it happens on Tuesdays,
[1:00:55] Thursdays.
[1:00:56] >> That's not decided by Waste Connections or the people that
[1:00:56] are actually picking it up.
[1:00:57] It does go to the county, to the recycle facility at the county.
[1:01:00] And they do the separation.
[1:01:02] They can figure out what is good, what is bad,
[1:01:07] and then they separate it.
[1:01:09] They compile it.
[1:01:09] And then what they actually do is sell it.
[1:01:12] They sell the recycled material.
[1:01:14] But the answer to your question is that it's not
[1:01:18] done by waste connections.
[1:01:19] They are just picking it up and delivering it.
[1:01:23] >> On that one they are the haulers.
[1:01:28] They are not distributing.
[1:01:29] >> So can't we find out what our contract price would be without
[1:01:34] recycling just so we have--
[1:01:41] >> Of course, we can ask >> Are we allowed to not have
[1:01:45] recycling?
[1:01:45] >> That would be a different question.
[1:01:47] Even if we get a number, but I don't know.
[1:01:51] I'll let Susan answer that.
[1:01:52] >> The statutory standard that most people are not
[1:01:56] in compliance with for the standard percentage recycling.
[1:01:56] It's been a while since we've looked
[1:01:58] at how it applies >> We will look that up, Buzzy.
[1:02:09] >> I appreciate it.
[1:02:10] You know I am all for recycling.
[1:02:10] Want to make sure we're getting what we're paying for.
[1:02:13] If there's a way that we can maybe
[1:02:14] reduce what goes into recycle bins,
[1:02:16] so that we can make sure a higher percentage actually
[1:02:19] gets used, maybe that's a policy decision
[1:02:22] we can make down the road.
[1:02:24] >> Thank you.
[1:02:26] Any further questions from the council before we open up
[1:02:29] for public comment?
[1:02:39] Neca Logan.
[1:02:44] >> Neca Logan I think Buzz's question is a good question.
[1:02:50] But none of the bins are properly labeled.
[1:02:56] So there is an education process that does not exist.
[1:02:59] My understanding when John Oldenburg was here
[1:03:03] was if the bin is contaminated and you put it on the truck,
[1:03:07] now the whole entire truck is contaminated.
[1:03:09] I don't know if that is truth or not,
[1:03:13] but that is what he said back a while ago.
[1:03:16] Another issue that I think we find resolved
[1:03:20] was for people who have excessive amounts of refuge
[1:03:28] that you can order an extra can at a cost.
[1:03:30] So that is offsetting where the trucks are over full at times
[1:03:35] and they can't make the full pickup.
[1:03:38] >> Thank you, Neca.
[1:03:44] Any other public comment on the solid waste assessment?
[1:03:47] Seeing none, I'm going to close public comment.
[1:03:49] Is there a motion to approve?
[1:03:51] >> I'll make the motion.
[1:03:56] >> Is there a second?
[1:03:57] >> I'll second.
[1:04:01] >> It's been moved and seconded.
[1:04:02] All those in favor, say aye.
[1:04:06] Opposed, none.
[1:04:11] Passes 5-0.
[1:04:13] Before we move on to the next item
[1:04:14] I'd like to maybe invite them to come out
[1:04:14] because I know this contract gets
[1:04:14] approved kind of behind the scenes
[1:04:16] and we never really get to see them.
[1:04:18] But maybe have them give a presentation
[1:04:20] on the recycling activity.
[1:04:22] >> The contract comes to you-- we can have them come and say
[1:04:33] this is what we do.
[1:04:34] This is how much we collect.
[1:04:35] Kind of a data dump for lack of a better term.
[1:04:41] And I'm happy to do that.
[1:04:49] # >> R7# establishing sewer and water rates.
[1:04:52] >> A resolution of the village Council establishing sanitary
[1:04:54] sewer and water rates for the 2026, 27 fiscal year,
[1:04:57] providing for an effective date.
[1:04:59] >> Thank you.
[1:05:00] Mr. Manager?
[1:05:04] >> Okay.
[1:05:07] Mr. Mayor, as I presented earlier,
[1:05:09] this is the funding associated with our utility system.
[1:05:12] We collect our water and our sewer.
[1:05:14] I present it to you in the Powerpoint.
[1:05:16] This does represent an increase to our average user's water
[1:05:21] and sanitary sewer.
[1:05:22] >> Thank you.
[1:05:26] Any public comment on the sanitary sewer and water rates?
[1:05:30] Seeing none I'm going to close public comment.
[1:05:32] Any comments from Council?
[1:05:35] Is there a motion to approve?
[1:05:44] >> I'll make the motion.
[1:05:45] >> Is there a second?
[1:05:45] It has been moved and seconded.
[1:05:46] All those in favor, say aye.
[1:05:53] Opposed, none.
[1:05:56] Passes unanimous the.
[1:05:59] R7F, the consolidated fee schedule adoption.
[1:06:03] Mr. Clerk.
[1:06:05] >> R7F, a resolution of the City of Bar Harbor Village,
[1:06:07] adopting a consolidated schedule of fees imposed by the village
[1:06:10] for the provisions of services, providing for conflict providing
[1:06:13] for an effective date.
[1:06:15] >> Thank you.
[1:06:16] Mr. Manager?
[1:06:17] >> This is the last piece for your budget.
[1:06:22] For ease of reference, what we do is approve a consolidated fee
[1:06:25] schedule so that it's clearly indicated
[1:06:28] in all of the fees associated with the village
[1:06:37] are in one place so it's as transparent as we can make it.
[1:06:39] In this instance, the fee schedule
[1:06:41] is being revised, recommended to be revised in three areas.
[1:06:44] One is what you just did, the sanitary sewer and water rates.
[1:06:48] That is reflected.
[1:06:49] The other two areas are the police off
[1:06:54] duty program has not been adjusted since I have been here.
[1:07:00] And we were woefully below our neighboring jurisdictions.
[1:07:04] We are governed somewhat in what the rate can
[1:07:08] be by the development agreement that we have
[1:07:11] with the Bal Harbour shops.
[1:07:16] We can't go higher than a certain number of.
[1:07:17] This brings it to that number so we are still
[1:07:17] in compliance with the obligations we have with that.
[1:07:20] There's two components, with the police officer receives,
[1:07:23] and then an administrative cost associated with each hour.
[1:07:26] That is reflected in their.
[1:07:27] What is it going to become hourly? $95 an hour
[1:07:34] for any off duty.
[1:07:37] This is paid for by either whoever the user is
[1:07:40] of the off duty service.
[1:07:42] So whatever hours are generated, there's
[1:07:46] a corresponding revenue associated with it.
[1:07:48] And then in our recreation Arts and culture program,
[1:07:51] we have fee adjustments for the various programs.
[1:07:55] And so those are reflected in your recreational section
[1:08:01] of the fee schedule.
[1:08:02] I'm happy to go through any of the items.
[1:08:04] But those are the three that are being adjusted this year.
[1:08:09] There are two items I want to tee up if you will.
[1:08:13] I've mentioned before that we are in the midst of a building
[1:08:15] permit fee analysis as required by the State of Florida.
[1:08:19] And so that is underway but not complete
[1:08:23] in time for this approval.
[1:08:24] So we anticipate bringing that to you
[1:08:26] hopefully by the end of the fiscal year
[1:08:29] double or the calendar year if not sooner.
[1:08:31] So in the next couple of months.
[1:08:32] Similarly we have been debated in this Council
[1:08:35] for quite some time the stormwater fee.
[1:08:37] I think we have a resolution on that.
[1:08:39] That will come as well subsequently.
[1:08:43] Not ready for this item based on some final decisions that
[1:08:46] have been made.
[1:08:47] So you can anticipate both of those in the near future.
[1:08:51] It'll be an amendment to this resolution for the fee
[1:08:57] schedule at the proper time.
[1:09:02] >> Okay,s o can I get a motion to approve the consolidated fee
[1:09:05] schedule?
[1:09:05] >> Make the motion.
[1:09:08] >> It has been moved.
[1:09:09] Is there a second?
[1:09:10] Do we need to do any public comment on this?
[1:09:12] Is there public comment on the consolidated fee schedule
[1:09:15] update?
[1:09:16] Seeing none, going to close public comment.
[1:09:22] It has been moved and seconded.
[1:09:23] All those in favor, say aye.
[1:09:31] Opposed, none.
[1:09:31] Passes unanimously.
[1:09:31] Now we have public comment on any item
[1:09:34] that anyone wishes to address to the Council.
[1:09:38] No public comment?
[1:09:42] Going to close public comment.
[1:09:45] Village manager's report.
[1:09:48] >> No report.
[1:09:52] >> Village clerk report.
[1:09:56] >> Nothing to report this evening.
[1:09:59] >> Well, that concludes our first budget hearing.
[1:10:03] Our second budget hearing will be heard as part
[1:10:05] of our September regular council meeting 630 on September 15th.
[1:10:11] Motion to adjourn.
[1:10:21] Okay.
[1:10:30] [ambient conversation]