[0:04] uh to order and if I can get a motion to approve the order of the agenda. So

[0:11] moved by Mr. Tisdale. Do I have a second?

[0:15] Second. I got to get used to all these names now. Second by Mr. Curly.

[0:20] Mr. Tisdale. Uh nothing. I just say we call for the

[0:25] question. All right. If there's no other discussion, we'll go ahead and call for

[0:28] the question. Call for it. Those opposed.

[0:33] Motion carries.

[0:44] All

[0:58] right. Presentation agenda.

[1:03] Should we start? Yeah. No report. Welcome to the new council members and

[1:07] this is I'll start every meeting but this meeting no report. All right. uh

[1:12] generally would go into council report but uh I would suggest that we hold our

[1:17] council reports uh you know till the following meeting but we'll go ahead and

[1:22] call for council reports

[1:29] no report

[1:32] no report okay great

[1:38] all right and our topic is budget. We'll go into the revenue part of it.

[1:46] [Music] Good public agenda.

[1:51] All right. Uh we do have uh at this special meeting, we also have uh our our

[1:58] public comments. Uh if there's anyone that would like to be recognized, raise

[2:02] your hand.

[2:06] All right. No one wants to be recognized as part of the agenda is closed.

[2:15] All right. Policy agenda.

[2:21] Clerk would read the policy agenda. Subject matters to discuss the fiscal

[2:27] year 2526 municipal budget. All right. I'll entertain the floor. Anybody want

[2:33] wants to make comments? Well, I think you have the spreadsheet.

[2:39] I know it's kind of small to to read, but I think you have it on your screen,

[2:43] too. Uh for Diana will for our new council members to come is is the the

[2:49] guru when it comes to categories and and uh uh projections which you have is is

[2:55] what we're looking at for 26. That's the right hand column. I think that was

[3:00] project based on last year's and the performance of this

[3:04] year. what we project at the end of uh September and u also what we think uh in

[3:12] in in a few is pretty flat and uh we're going to have you know we'll go over any

[3:17] questions that uh that you would have but about 75 million is what the bottom

[3:24] line is and there have been some increases in

[3:27] some categories and some things that uh u

[3:32] you know we did I think one big hit item was is the diversion. We estimated that

[3:37] you know the uh the insurance uh revenue didn't didn't pan out because of a lot

[3:43] of things. So that was a pretty significant uh

[3:48] decrease in at least the budget of of the uh revenue and uh we're open to

[3:54] question Dian probably be the one who deliver answers to anything you might

[3:59] see on that spreadsheet. It's it's we started this spreadsheet is

[4:05] from the high hitters to the ones that generate the most revenue of course the

[4:09] gaming you see 23 million and that was a record year that we we budgeted in the

[4:15] past and we're probably going to be at that same uh guess as far as that

[4:21] category of revenue then taxes and then some of the sales tax and use taxes but

[4:26] they get up at the top part of your spreadsheet. All right. Uh I'm going to

[4:31] start with uh Mr. Tisdale. You want to open some remarks, Mr. I do. I have some

[4:37] uh some preliminary comments if you would.

[4:41] Um I I I would hope that we would use a consistent revenue format

[4:47] um that we've used in past years. I'll explain that a little more. I mean for

[4:54] example this list of revenues from greatest contributors or the least

[4:58] contributors that doesn't help me much. Okay I think

[5:04] sheare be bear with me bear with me. Um so I'd

[5:09] like a slightly different format and I'll I'll make the copy available

[5:14] uh of which we've done in past years. I think it would be a detailed revenue

[5:19] report similar to what we get in the monthly financial reports.

[5:24] Um that's the first thing. Also the the next thing is any handouts or documents

[5:30] we're going to receive at budget workshops that we would receive them by

[5:34] Friday at noon so we have time to look over them, check on some things, several

[5:39] days to check on some things and enjoy our weekend. Uh but that didn't always

[5:44] happen in past years. Um, I would like for those documents

[5:50] that we receive to be mailed to us in a PDF format. Typically, they are, but

[5:56] also if they're spreadsheet or a word, I would love that document in an Excel

[6:02] format or a word format as well, not just a PDF. And that hard copies, well,

[6:07] the clerks could prepare hard copies for us. Um during workshops I would like for

[6:14] the documents that are being discussed be displayed on the screen up there. The

[6:18] panel up there the digital panel folks can follow at home and folks out here in

[6:23] the audience can follow as well. I I'll give give you a copy of all these Mr. P.

[6:28] Um the documents like the combined fund

[6:32] statement should be enlarged so that the numbers can be read comfortably.

[6:38] uh you put them on an 11 and a I think it'll what it's 11 by 17 and it's still

[6:44] it's just difficult to read it. We got to spread it over two or four of those

[6:47] sheets. That's fine. Uh just so we can read them. Um

[6:54] and for the the public budget hearing, we're a ways from that yet, but I would

[6:58] like for these documents to be available for comment. The statement of revenue is

[7:03] all funds which we typically do. I think the combined fund statement which we

[7:07] typically do a summary of department budgets which we typically do uh non-EP

[7:14] departmental appropriations sometimes it's referred to as discretionary

[7:18] spending which we typically do and a list of the capital projects

[7:23] uh that show the funding sources and the amount for each project. And I would

[7:28] suggest we include the CDBG projects and just on a single line,

[7:33] maybe the FEMA infrastructure project. I know a lot of that is done, but there's

[7:38] there's still a balance there. Um,

[7:43] and a question dealing with non-EP departmental requests.

[7:48] So, if we're going to we're we're going to discuss that at some point on the

[7:52] calendar that we received I think in June. And I'm thinking h how do the

[7:58] folks who might want to request something or the folks who typically

[8:01] request something how do they know that it's time to make a request? Does your

[8:07] does your office do that? Okay. You know again as we go through

[8:13] departmental departmental

[8:17] usually the last capital request within department detail

[8:23] things that might be abused to say in this department I need $2 million in

[8:28] capitaliz

[8:36] usually do two or three departments in a session Right. Great. And I I I noticed

[8:44] looking at the topics on the calendar that capital projects was not in there

[8:49] anywhere. I don't know. Could be with engineering for that

[8:54] matter when we the capital projects that we that you might be looking to create

[8:59] in fiscal year 26. I'd like to know if we have capital projects that are going

[9:04] to be launched in fiscal year 26. like to know what they are and where

[9:09] where the funding sources are, the cost broken out, things like that. Um,

[9:16] also this uh just in looking first time we've seen on the handout that you gave

[9:23] us on the big sheet. Thank you very much. We have uh for fiscal year 26

[9:28] we're looking at a total general fund figure of 75,350,000.

[9:34] And then there's um transfers of 10 million almost $10.5

[9:42] million. What? Yeah, Diane, if you would explain,

[9:46] and I've never fully understood transfers, so go slowly for me. There is

[9:51] ARPA money and infrastructure money in the general fund that is funding capital

[9:55] projects and that is part of the total value. There's more than just that in

[10:00] there, but that is the majority of it. So if those projects all finished within

[10:05] 26, that would be the amount needed. We carry it all because we don't know how

[10:10] quick the work is going to go and when it's going to be used. So we recognize

[10:15] every bit of it. Okay. Next question is so basically I

[10:20] understand the transfers for the most part are going to ARPA projects and

[10:25] infrastructure infrastructure projects. Might that be FEMA related?

[10:30] No, it it's yeah the infrastructure money is a little different. It it's

[10:35] could be used for pops fairy. It could be used for patch and replace.

[10:40] It could it can be assigned to various items.

[10:44] Okay. Thank you. But the general fund also funds other

[10:49] projects like the baseball maintenance fund. Correct. And and that's all in

[10:53] that number as well. Okay. Do we do we have a projected carryover or ending

[10:58] balance of the general fund at this point in time for from fiscal year 25 to

[11:04] 26? Okay. Uh and the revenue figure

[11:10] um total general fund would be 75 million. That's is that number going to

[11:16] change in the future or is this the market we want to use to set our our

[11:21] revenue? It could possibly be tweaked a little bit, but it's pretty close to

[11:25] where it's going to be. Okay. And and that 75 million again includes

[11:31] almost 10.5 million for AR and infrastructure issues. Um

[11:37] Okay. The proceeds of note for 2 million. Explain that. We ordered a fire

[11:42] truck this year that takes three years to build and when it comes in the note

[11:47] will offset it because the expenses on the other side we carry the revenue on

[11:51] this side. Okay. Fire truck. Thank you. Thank you very much. Um that's all I

[11:57] have at this time. Uh Mr. President, thank you. All right. Uh the chair uh

[12:03] will recognize anyone else that would like to make comments. We realize that

[12:07] we have four new members. This is a a new process, but uh any questions, any

[12:13] comments, if you got something, throw it out there. Okay, that's the only way

[12:17] we're going to learn. Let me say we just pass this is that's

[12:22] not data in in categories, which is the same numbers. This is by

[12:29] Thank you. Thank you. And and yeah, this is great. I'd like something a little

[12:34] more detailed. Again, I'll get you a copy of what I'm talking about. Let's

[12:37] see what Thank you. All right. Anybody have any questions on

[12:42] revenues as you look down this list?

[12:47] And this does not any council members. Yeah, this this does not pertain to

[12:53] proprietary funds, ports and and water and sewer. This is just general fun.

[12:58] Thank I I do have uh some questions if my colleagues are still reviewing this

[13:03] at this time. Uh as it uh relates to the sales tax rebate. That's our portion

[13:11] that we get from sales taxes from the state. Is that what that is? Sales tax

[13:16] rebate. So they're they're changing they're changing our sales tax

[13:20] structure. Correct. Yes. On what we get. So of whatever the sales tax charge we

[13:26] now get whatever they're charging whether they

[13:29] charge for sales tax 6% or or whatever 7% 7% but 5% on groceries but we were

[13:36] told we will be made whole for that difference in that right so the

[13:41] groceries are are not I think all SNAP related items that are sold at grocery

[13:45] stores will have a 5% charge and then you know the the

[13:53] 1.29 will be made whole which is not percentage of that 7%. So we still

[14:02] Yeah. So here's my question. Uh when this was when it was originally being

[14:08] proposed to revamp our sales tax and they said all things being equal,

[14:14] our our actual uh take would be more. In other words, our share would be even

[14:22] more. All things being equal the way they were restructuring it. And I know

[14:25] we got it flat in this budget. Um, should we consider that or do we need to

[14:31] look at a model? Because I thought it was going to be an increase. But they're

[14:34] going to be collecting less and when they collect less, we're getting a

[14:38] higher percentage because it equals out. I did the math and it comes out the same

[14:41] numbers. Okay. Looked at a prior year and then I converted it to the new

[14:46] formula and it was exactly the same. And and that's mainly because of the

[14:51] reduction in the grocery tax. It's reduction. Yeah. The overall tax from 7%

[14:56] to 5%. Okay. So then they raised our share so that we got in essentially the

[15:02] same amount. One one model I saw early actually saw that we would show a little

[15:07] bit of an increase. So but I'm trusting you on that and I appreciate the

[15:12] explanation. Um let's see going down to the diversion fees. Can

[15:19] you kind of bring me up to speed because that's a big swing. So why is that a big

[15:23] swing? We enter in into the year with Secure X. We had some uh some experience

[15:29] for a few months in the prior year and we projected 600,000 over the year and

[15:35] we you know we wind up with 6,000 because of some lawsuits and some things

[15:39] that we suspended that that's uh that component. So that's not in the budget.

[15:45] Okay. We have received no money all year except for one month. No worries. And

[15:50] then uh this is a minimal amount and I still want to question it because it may

[15:54] relate uh to another part of the budget when we get to it later on. Um when we

[16:00] get deep into the process rent on the old uh Lexi Library second floor, we're

[16:05] just not renting that anymore. It is not rented at the moment. I believe it needs

[16:09] renovations to be rented. Okay. So that's why we struck that out of the the

[16:15] equation. Thank you. Thank you for that. um county bond or county road tax

[16:21] sharing that's changed 125,000

[16:27] in I think it was fiscal year 24 let me see we had a huge increase one year I

[16:34] think it was 24 so we planned for 25 to be similar to 24 because we get no

[16:40] support for backup on this and 25 is not following 24's format so we've taken 26

[16:47] 26 similar to 25 which is similar to 23 in years prior.

[16:52] Okay, makes sense. Recoveries

[16:56] big swing in there. Recoveries had some extra money in it

[17:03] for fees that we were going to charge to third parties that did stuff within the

[17:08] city and that has not come to fruition. So, I did not include that in 26 budget.

[17:15] Uh and then there was some interest in uh investments.

[17:22] I thought investments I thought we did all high today. Well, stock market

[17:26] interest changes and has gone down a little bit over time. So, I was planning

[17:30] for it to continue next year. I mean, I magic eightball doesn't always work

[17:34] right. Um but we also are going to have some decrease in cash if the funds go

[17:40] out for the Popsberry. It's not working as hard. So I'm Yeah. And I'm planning

[17:46] for less cash, so less interest.

[17:52] All good. All very logical explanations. Appreciate it. Um that's all I have at

[17:58] this point, Mr. Ker. Does this include grants? Yes, it does.

[18:05] Tyl grants from the capital projects fund.

[18:09] This is only the general fund. Thank you.

[18:13] If you if you look at your schedule, everything that shows in the white tile

[18:16] that looks like 20 number, those are grants. GR signal about midway you

[18:21] through CGR one such as a grand revenue. Let me explain something to you Jamie.

[18:27] We have multiple funds, but you can only have one general fund, and that's what

[18:32] this is. The general fund is our primary fund where the majority of the city

[18:36] operates out of. It is a governmental fund. And um it it is our main fund.

[18:44] Every single thing from employees for cleaning and admin it's all in here.

[18:51] Then we have two proprietary funds which is the port and water and sewer. Those

[18:56] both act like an actual business. They are considered enterprise funds and go

[19:01] on full acral basis. And then we also have other funds that are like special

[19:07] project funds or special revenue funds. Um, when the police department gets

[19:12] seized money, that goes into a special revenue fund and it stays separate. The

[19:17] fire department gets fire rebate money, it goes into a separate fund and things

[19:21] flow in and out of that fund and it may fund the general fund, but it's reported

[19:25] in a separate fund. They have to get permission to use it or they have

[19:29] guidelines to follow. And then there's a capital projects fund

[19:33] where we do all the major things like the copsberry road extension or

[19:37] tidelands money restore mea those are all in a separate fund and then we have

[19:43] some agency funds and some internal funds our insurance or self-insured

[19:49] those are in self um internal funds and those funds will actually build back the

[19:54] general fund and the proprietary funds for their cost and their portion of the

[19:59] daily bills.

[20:03] Okay. Um on gaming tax and you know it's relative you know I believe to how the

[20:10] hotels are performing. Uh year to date hotels are slightly up. They're slightly

[20:16] up and and I know we're trying to be conservative here to for forecast

[20:21] something relatively flat. Um, and if I'm reading this correct correct year to

[20:27] date or fiscal year collected 66%, right? And we're into how many months of

[20:35] the fiscal year? This was except period 8. So we're through 9 months. So we got

[20:40] three more months to go, right? All right. So we we're we're kind of on

[20:44] track if you all things considered equal. However, the the next three

[20:49] months are our biggest banner months as far as tourism, gaming, you know, etc.

[20:55] So, I'm just wondering that that could be a slightly conservative a little bit

[20:59] more conservative figure. And I ask this question every year. I'm always wanting

[21:03] to push the envelope, push it a little bit higher, make sure we get that and

[21:08] and we don't want to be irresponsible and push it too high. And we got to come

[21:11] back and do budget amendments when when we fall short. But when I did the

[21:16] budget, I looked at where we were year two and we're at4% increase for the

[21:21] prior year for the first 9 months and then I forecasted what I thought the

[21:26] next 3 months were going to be to arrive at the figure and it pretty much comes

[21:29] with the 23 million give or take a few dollars. So I just picked 23 million.

[21:34] Okay. But but we've collected 66% right of of what we projected. Is that what it

[21:41] is? Well, it might be a little more now from when this was done cuz I I can't

[21:45] keep updating where we were and then use it to May and then I forecast what I

[21:51] think June, July, August, and September are going to be. Okay. Which are our

[21:55] banner months and that's that's what I'm just saying. I mean, those are that's

[21:59] our 100 days when we make the majority of our money in the tourism industry.

[22:03] I'm just wondering if that may be a little conservative.

[22:07] I'll look at it again. Okay. No disrespect, but you know, I certainly

[22:12] appreciate the they do. I think the number of weekends impact those three or

[22:16] four months too, you know, as far as GR

[22:22] anyway. No, sure been very last year 23 million was a record and and I think as

[22:28] far as GR we were at a million 90 a billion 91 million and I think this last

[22:34] year was a billion 69 million. So we're right at where we were recordwise

[22:40] across all 8%.

[22:44] I I would just ask consideration to take a look at it being that this next 100

[22:48] days is our biggest revenue producing months. Just take another look at it if

[22:52] you will. I know you I know you got professional care that's beyond

[22:57] reproach. I'm just asking from from a tourism lens if you take a look at it.

[23:02] Okay, that's all I have gentlemen. Any any other comments? Just

[23:08] M just M just M just M just M just M just M just M just M just M just

[23:09] question I don't know if you guys know but any word on last year's audit when

[23:13] we may receive that? Yes, it'll be presented at next week's budget meeting.

[23:18] Okay, great. It's done and we'll file the reports that we're in compliance for

[23:22] George Martin.

[23:26] We don't have a council meeting next week, but we will have a budget workshop

[23:30] next week. presented at the budget workshop and what I'm assuming that'll

[23:33] be at 1:30. Does that work for everybody? Okay,

[23:38] thank you. Just want to be clear on it. Thank you. All right. Uh generally this

[23:43] process will will certainly change. This is a a starting point on the revenues.

[23:48] Um it certainly can go up or down a little bit. It's pretty fluid. Uh but

[23:52] this is the beginning of getting into the nuts and bolts of of our budget for

[23:56] this year. If there's no other comments. If there's no

[24:04] Yes. I need a motion. So move. Do I have a second?

[24:10] Second by Mr. Shoemaker. 1:30. Next week? Y'all got the date? Okay.

[24:17] Everybody good with that? On what's that?

[24:21] July. Tuesday, July 8th. Tuesday, July 8th. Call for the question. All in

[24:27] favor? Those opposed? Motion carries.

[24:33] Any other comments? Entertain a motion to adjourn. So move.

[24:39] I need a second. All right. Seconded by Mr. Gray. Any other discussion? All in

[24:45] favor? Those opposed? Special meeting is closed.

[24:51] [Music] Oh,

[25:01] [Music]

[25:16] welcome.

Special Called meeting July 1, 2025

Transcript