1 00:00:04,675 --> 00:00:08,490 >> I call to order the city of Edgewater Budget Workshop 2 00:00:08,490 --> 00:00:10,490 for August 10th 2026. 3 00:00:10,602 --> 00:00:12,602 Roll call. 4 00:00:15,770 --> 00:00:17,770 [Roll call] 5 00:00:22,970 --> 00:00:24,970 >> City clerk Kilburg. 6 00:00:25,650 --> 00:00:30,143 >> I don't think you're microphone was on so that was 7 00:00:30,143 --> 00:00:31,275 just roll call. 8 00:00:31,275 --> 00:00:33,330 Item one budget presentation discussions 9 00:00:33,330 --> 00:00:36,330 item a city wide recap. 10 00:00:36,410 --> 00:00:40,450 >> Good evening mayor and council Bridget asking here 11 00:00:40,450 --> 00:00:42,385 finance director with the city of Edgewater. 12 00:00:42,385 --> 00:00:46,880 We have our amazing team here present throughout the budget 13 00:00:46,880 --> 00:00:50,550 workshop as they put so much effort into it and huge thanks 14 00:00:50,550 --> 00:00:52,610 to the entire team for helping with this. 15 00:00:52,610 --> 00:00:56,270 So this afternoon August 10th 4 p.m. 16 00:00:56,270 --> 00:00:59,370 We're just going to be going through a recap 17 00:00:59,370 --> 00:01:02,970 of like highlights from the June and July workshop. 18 00:01:02,970 --> 00:01:05,530 Handful of some pretty significant changes 19 00:01:05,530 --> 00:01:07,240 from the last workshops. 20 00:01:07,240 --> 00:01:09,220 Working budget. 21 00:01:09,220 --> 00:01:12,903 We should have maybe some just minor fluctuations between now 22 00:01:12,903 --> 00:01:14,530 and September budget. 23 00:01:14,530 --> 00:01:18,730 Finalizing the budget for September public hearings. 24 00:01:19,490 --> 00:01:21,490 So. 25 00:01:26,330 --> 00:01:29,330 So again, work in progress. 26 00:01:29,490 --> 00:01:32,470 We're still waiting on the final data related to the compensation 27 00:01:32,470 --> 00:01:33,870 and classification study. 28 00:01:33,870 --> 00:01:36,460 But we have received preliminary estimates 29 00:01:36,460 --> 00:01:38,830 to incorporate into our budget model. 30 00:01:38,830 --> 00:01:41,396 So we have incorporated that. 31 00:01:41,396 --> 00:01:45,600 Additional updates may be needed prior to the budget presentation 32 00:01:45,600 --> 00:01:47,110 in September, management team are 33 00:01:47,110 --> 00:01:50,338 reviewing the potential impact of tax reform legislation. 34 00:01:50,338 --> 00:01:52,500 And are taking proactive measures 35 00:01:52,500 --> 00:01:55,500 during the current fiscal year. 36 00:01:57,290 --> 00:02:01,378 So the tax homestead reform financial impact 37 00:02:01,378 --> 00:02:05,330 as most are aware, legislation was recently passed 38 00:02:05,330 --> 00:02:07,290 and they're planning on putting on the ballot 39 00:02:07,290 --> 00:02:09,420 some tax reform measures that would 40 00:02:09,420 --> 00:02:13,620 increase homestead exemptions to homeowners throughout Florida. 41 00:02:13,850 --> 00:02:17,850 The estimated impact of this ad valorem revenue reduction 42 00:02:17,850 --> 00:02:20,889 would be approximately 5 million within the first couple 43 00:02:20,889 --> 00:02:22,690 of years of implementation. 44 00:02:22,690 --> 00:02:28,900 3.5 million for fiscal year 28 and 1.5 million for fiscal year 45 00:02:28,612 --> 00:02:29,530 29. 46 00:02:29,530 --> 00:02:31,994 Smaller reductions in years thereafter. 47 00:02:31,994 --> 00:02:37,310 So what are ways that we can offset that? 48 00:02:37,310 --> 00:02:40,500 A potential offsets for the revenue reduction 49 00:02:40,500 --> 00:02:42,190 include estimated fire assessment increases, 50 00:02:42,190 --> 00:02:45,190 currently our fire assessment is $50. 51 00:02:45,540 --> 00:02:48,530 If we were to increase it to around 300 52 00:02:48,530 --> 00:02:53,100 per home which would be closer to the full burden of fire 53 00:02:53,100 --> 00:02:56,120 services, it would be approximately $300 million 54 00:02:56,120 --> 00:02:57,870 of increased revenue. 55 00:02:57,870 --> 00:03:00,610 Other areas that we have within our control 56 00:03:00,610 --> 00:03:04,130 would be increasing the millage, a half mill 57 00:03:04,130 --> 00:03:06,130 increase from 6.33 to 6.83. 58 00:03:06,890 --> 00:03:10,650 Would be an increase in revenue of approximately 650,000 59 00:03:10,650 --> 00:03:13,650 for just the non-homestead properties. 60 00:03:13,903 --> 00:03:16,770 We wanted to evaluate it without the homesteaded properties 61 00:03:16,770 --> 00:03:21,170 knowing that they would have much less revenue impact. 62 00:03:21,170 --> 00:03:24,250 Reduction in level of service and staffing levels 63 00:03:24,250 --> 00:03:26,780 is another area that is within our control. 64 00:03:26,780 --> 00:03:31,143 Reduction in wages falling below recommended compensation study 65 00:03:31,143 --> 00:03:31,830 salaries. 66 00:03:31,830 --> 00:03:35,474 And reduction in capital, parks paving and equipment. 67 00:03:35,474 --> 00:03:37,770 So we're all watching and monitoring 68 00:03:37,770 --> 00:03:41,510 the upcoming legislation and having internal discussions 69 00:03:41,510 --> 00:03:43,510 to be prepared. 70 00:03:46,730 --> 00:03:50,330 The fiscal year 2027 budget proposed budget 71 00:03:51,790 --> 00:03:56,515 is balanced based on holding the millage flat at 6.33. 72 00:03:56,515 --> 00:03:58,515 Estimated revenue $14,192,630, approximately 42.26 73 00:04:03,986 --> 00:04:08,556 of our general fund recurring revenues is made up of ad 74 00:04:08,556 --> 00:04:09,543 valorem taxes. 75 00:04:09,543 --> 00:04:13,118 The fire assessment based on the $50 per resident, 76 00:04:13,118 --> 00:04:16,796 also the per square foot application for commercial 77 00:04:16,796 --> 00:04:19,196 industrial and institutional properties, 78 00:04:19,223 --> 00:04:22,223 has an estimated revenue of $641,771. 79 00:04:26,730 --> 00:04:30,890 So the chart this evening here is the general fund recurring 80 00:04:30,890 --> 00:04:34,593 revenues, we isolated the one time grant amounts, 81 00:04:34,593 --> 00:04:36,880 that way it's a more representative picture 82 00:04:36,880 --> 00:04:39,418 of the recurring revenue streams. 83 00:04:39,418 --> 00:04:41,418 Again 42% ad valorem. 84 00:04:42,600 --> 00:04:46,860 The charges for services, other taxes, sales tax, 85 00:04:47,610 --> 00:04:51,210 Intergovernmental such as state shared revenues. 86 00:04:54,500 --> 00:04:56,501 And a lot of these slides come up 87 00:04:56,501 --> 00:04:58,746 because there were a lot of areas that held constant 88 00:04:58,746 --> 00:05:02,834 from the prior two workshops, go through pretty quickly, 89 00:05:02,834 --> 00:05:05,763 but if you do have areas that you want me to slow down, 90 00:05:05,763 --> 00:05:07,390 please let me know. 91 00:05:07,390 --> 00:05:11,498 The general fund staff, we are using existing staff for budget 92 00:05:11,498 --> 00:05:13,194 this fiscal year 27. 93 00:05:13,194 --> 00:05:16,800 No staff are currently being added, 94 00:05:16,800 --> 00:05:19,330 as positions become vacant will be reviewed on a case by case 95 00:05:19,330 --> 00:05:20,970 basis before filling. 96 00:05:20,970 --> 00:05:24,570 Preliminary estimates from the compensation classification 97 00:05:24,610 --> 00:05:27,470 were included in the updated proposed budget. 98 00:05:27,470 --> 00:05:31,420 The estimated impact to General fund is 9.1%. 99 00:05:31,420 --> 00:05:35,620 This includes estimated increase of 7% for health 100 00:05:36,483 --> 00:05:38,483 and dental insurance. 101 00:05:39,810 --> 00:05:43,410 The General fund expenditure by type, 102 00:05:44,666 --> 00:05:48,270 again salaries and benefits are a huge portion 103 00:05:48,270 --> 00:05:49,839 of the General Fund. 104 00:05:49,839 --> 00:05:55,350 So 63, almost 64% of the general funds budget is personnel cost. 105 00:05:55,350 --> 00:06:00,150 Operating line items 24.47%, and then other debt service 106 00:06:01,663 --> 00:06:03,818 transfers capital purchases, making up 107 00:06:03,818 --> 00:06:07,130 a smaller portion of the general fund expenditures. 108 00:06:07,130 --> 00:06:10,730 For fiscal year 2027, capital outlay that 109 00:06:12,586 --> 00:06:14,994 has been included in the proposed budget. 110 00:06:14,994 --> 00:06:19,516 We have a handful of vehicles for economic development 111 00:06:19,516 --> 00:06:20,890 services. 112 00:06:20,890 --> 00:06:23,270 Fire Department, streets department, 113 00:06:23,270 --> 00:06:26,870 mower for streets, parks and rec, 114 00:06:28,900 --> 00:06:33,810 to Utvs, two trucks, and a three quarter ton truck, 115 00:06:33,810 --> 00:06:36,996 parks right on sand bunker rake and police department 116 00:06:36,996 --> 00:06:39,300 docking stations for mobile units. 117 00:06:39,300 --> 00:06:45,630 So a total of 559,480 in capital equipment needs for fiscal year 118 00:06:45,962 --> 00:06:46,514 27. 119 00:06:46,514 --> 00:06:49,170 There are additional vehicles and equipment 120 00:06:49,170 --> 00:06:52,730 reviewed on later slides qualifying for police impact fee 121 00:06:52,730 --> 00:06:54,730 use. 122 00:06:55,500 --> 00:06:59,250 For the general fund reserves, as of 930 2025, 123 00:07:00,243 --> 00:07:02,243 there was $17,833,178. 124 00:07:02,956 --> 00:07:06,556 Charter reserves minimum 15% requirement is 4.6 million. 125 00:07:09,558 --> 00:07:14,540 Use of fund balance in our fiscal year 27 proposed budget 126 00:07:14,540 --> 00:07:16,540 includes using 1.2 million. 127 00:07:17,400 --> 00:07:22,800 The designated Fire ladder truck set aside in 25 was 300,000. 128 00:07:23,400 --> 00:07:27,714 Designated fire ladder truck set aside for an internal loan 129 00:07:27,714 --> 00:07:31,810 to be repaid with impact fees, 1 million. 130 00:07:31,810 --> 00:07:36,850 Park Town Phase two and three obligation of 1.3 million. 131 00:07:36,850 --> 00:07:40,450 Cash flow major grants stormwater loan 2 million. 132 00:07:40,450 --> 00:07:43,950 Transitional funds for tax reform, 2 million. 133 00:07:43,950 --> 00:07:48,750 Estimated operating reserves at 17% for two months, 5.2 million. 134 00:07:49,570 --> 00:07:53,770 Leaving an unassigned fund balance remaining of $91,804. 135 00:07:54,370 --> 00:07:59,170 We also have designated City Hall balance of $489,133. 136 00:08:06,290 --> 00:08:11,900 Within the Capital Projects Fund for fiscal year 27, 137 00:08:11,156 --> 00:08:14,480 we have paving projects included of 800 000, 138 00:08:14,480 --> 00:08:19,146 of that amount approximately 290,000 is estimated to be local 139 00:08:19,146 --> 00:08:20,920 option gas tax funded. 140 00:08:20,920 --> 00:08:25,120 We have dirt road reduction, sidewalks, central, 141 00:08:25,510 --> 00:08:28,621 Hawks Park rotary Park and Boat ramp 142 00:08:28,621 --> 00:08:31,250 are some of the major capital projects. 143 00:08:31,250 --> 00:08:33,620 The boat ramp is anticipated to be funded 144 00:08:33,620 --> 00:08:35,514 through grant and impact fees. 145 00:08:35,514 --> 00:08:40,490 So total capital projects included in the proposed budget, 146 00:08:40,490 --> 00:08:42,490 $11,508,330. 147 00:08:43,250 --> 00:08:49,250 We have 834,400 and Parks and Rec impact in current fiscal 148 00:08:49,250 --> 00:08:52,778 year that has been earmarked for that boat ramp project to carry 149 00:08:52,778 --> 00:08:55,178 forward into next year. 150 00:08:59,210 --> 00:09:02,600 No major changes for the Special revenue funds 151 00:09:02,600 --> 00:09:03,950 since last workshop. 152 00:09:03,950 --> 00:09:08,150 A multimodal impact fees estimated available 1.5 million. 153 00:09:08,490 --> 00:09:13,290 Anticipated uses include Jones Fish Camp Road and Silver Palm 154 00:09:13,290 --> 00:09:14,990 Sidewalk. 155 00:09:14,990 --> 00:09:17,990 Police impact fees estimated 410 available. 156 00:09:18,359 --> 00:09:21,355 We have training station and boat ramp 157 00:09:21,355 --> 00:09:23,693 identified as potential uses. 158 00:09:23,693 --> 00:09:28,493 Fire impact fees, we are estimating setting aside 350 000 159 00:09:30,450 --> 00:09:33,849 additional in upcoming fiscal year for the fire truck. 160 00:09:33,849 --> 00:09:37,306 And then that would leave a remaining 296 available 161 00:09:37,306 --> 00:09:40,902 as we review and get closer to receiving the truck we'll 162 00:09:40,902 --> 00:09:42,610 review the available balance and how much 163 00:09:42,610 --> 00:09:45,100 we would need remaining. 164 00:09:45,690 --> 00:09:48,690 Recreation impact fees estimated 32,000 available. 165 00:09:49,858 --> 00:09:53,490 Again we set aside a portion for the boat ramp. 166 00:09:53,490 --> 00:09:57,690 Projects are being reviewed assumes that additional 132,829 167 00:09:58,430 --> 00:10:03,436 impact fee collections prior to the start of that project. 168 00:10:03,436 --> 00:10:06,194 General governmental buildings impact fee of 184,000. 169 00:10:06,194 --> 00:10:10,394 The CRA or Community Redevelopment Agency has 886,000 170 00:10:11,783 --> 00:10:13,783 and estimated revenues. 171 00:10:13,806 --> 00:10:16,863 And that's going to be used towards land acquisition 172 00:10:16,863 --> 00:10:18,630 and streetscape projects. 173 00:10:18,630 --> 00:10:22,230 Tree Mitigation Fund currently has about 7599, 174 00:10:24,538 --> 00:10:28,178 if you all recall during one of the budget amendments this year, 175 00:10:28,178 --> 00:10:30,870 the allocated a portion of the tree mitigation funds 176 00:10:30,870 --> 00:10:34,470 to various projects throughout the city. 177 00:10:36,770 --> 00:10:38,770 The -- . 178 00:10:39,930 --> 00:10:44,270 >> Just one question so the Tree Mitigation fund is that like 179 00:10:44,270 --> 00:10:47,690 if a developer comes in and wants to clear down a facility 180 00:10:47,690 --> 00:10:50,690 like we've seen recently it would go into that fund? 181 00:10:50,690 --> 00:10:57,290 So we only have 759 9000 -- $7,599 in that fund so we can 182 00:10:59,122 --> 00:11:01,522 potentially have it 100 000 so. 183 00:11:01,930 --> 00:11:05,170 >> That is correct keeping in mind that we did have 184 00:11:05,170 --> 00:11:09,363 approximately 180 thousand that we allocated in current fiscal 185 00:11:09,363 --> 00:11:10,150 year budget. 186 00:11:10,150 --> 00:11:13,150 That is in the process. 187 00:11:14,250 --> 00:11:17,850 The scholarship fund has estimated available 5000. 188 00:11:19,760 --> 00:11:24,100 We do receive quite a bit during the Princess Ball each year, 189 00:11:24,100 --> 00:11:27,794 and that goes into that fund for scholarships being given out 190 00:11:27,794 --> 00:11:29,786 for Edgewater students. 191 00:11:29,786 --> 00:11:33,590 A special law enforcement trust fund estimated available 47000. 192 00:11:33,590 --> 00:11:37,190 Opioid Settlement Trust Fund, estimated available 800. 193 00:11:39,890 --> 00:11:44,583 The grant fund currently has a million earmarked for city metro 194 00:11:44,583 --> 00:11:48,180 requested for appropriations for stormwater projects and then we 195 00:11:48,180 --> 00:11:52,188 have 1,079,000 that was set aside for the canal armoring 196 00:11:52,188 --> 00:11:54,188 Cdbg 386 match. 197 00:11:54,610 --> 00:11:58,210 Arpa Economic Impact Fund estimated available 784,730. 198 00:12:04,250 --> 00:12:06,250 Citywide debt is $29,650,386. 199 00:12:16,490 --> 00:12:22,490 For the enterprise funds, we have fee resolution that was 200 00:12:22,730 --> 00:12:25,850 approved at the August 3rd meeting. 201 00:12:25,850 --> 00:12:28,794 That was incorporated into fiscal year 27 proposed budget. 202 00:12:28,794 --> 00:12:32,210 The rates were held flat in prior year, 203 00:12:32,210 --> 00:12:35,634 so water and sewer fund proposed 4.5% increase 204 00:12:35,634 --> 00:12:37,610 for water and sewer. 205 00:12:37,610 --> 00:12:41,450 That includes 42.4 million in debt for the wastewater 206 00:12:41,450 --> 00:12:45,203 treatment plant and fiscal year 31, and 10 million 207 00:12:45,203 --> 00:12:48,850 in waterline and other projects in fiscal year 29. 208 00:12:48,850 --> 00:12:52,314 Charges for service increased an estimated 1.2 million, 209 00:12:52,314 --> 00:12:55,650 a portion of which relates to a new counts. 210 00:12:55,650 --> 00:13:01,330 For the solid waste one proposed a 3% increase for refuse charges 211 00:13:01,330 --> 00:13:03,330 currently 29.71 residential to 30.60. 212 00:13:05,810 --> 00:13:09,850 Estimated increase in charges for service is $333,965. 213 00:13:09,850 --> 00:13:14,500 This also includes the new account additions. 214 00:13:16,900 --> 00:13:18,570 The recycling side of solid waste fund 215 00:13:18,570 --> 00:13:21,630 is anticipated to remain at $8 monthly, 216 00:13:21,630 --> 00:13:25,730 keeping in mind that verbiage was added to the November ballot 217 00:13:25,730 --> 00:13:29,602 and that is to get feedback on if customers would like 218 00:13:29,602 --> 00:13:31,240 to retain recycling services. 219 00:13:31,240 --> 00:13:36,540 The stormwater fund proposed a $5 and three cent increase 220 00:13:36,540 --> 00:13:38,940 from its current $14.58 residential. 221 00:13:40,596 --> 00:13:44,196 The estimated increase would generate 1 million 222 00:13:44,482 --> 00:13:46,882 in charges for service. 223 00:13:51,530 --> 00:13:55,716 For the water and sewer fund operating expenses, 224 00:13:55,716 --> 00:13:59,530 the preliminary estimates were included from the compensation 225 00:13:59,530 --> 00:14:00,303 classification. 226 00:14:00,303 --> 00:14:03,978 The estimated impact to the water and sewer fund 227 00:14:03,978 --> 00:14:07,850 is 7.5%, dependent on approval of the budget. 228 00:14:07,850 --> 00:14:09,970 Majority of the operating expenses 229 00:14:09,970 --> 00:14:13,346 had inflationary increases plus or -5%. 230 00:14:13,346 --> 00:14:16,330 There were no new staff added for this fund. 231 00:14:16,330 --> 00:14:20,530 And the total outstanding debt is currently $18,308,269. 232 00:14:20,910 --> 00:14:24,510 Water and sewer capital outlay that 233 00:14:27,510 --> 00:14:30,590 was included in the fiscal year 27 proposed budget, 234 00:14:30,590 --> 00:14:33,730 includes a tilt deck equipment trailer. 235 00:14:33,730 --> 00:14:37,930 Light duty pickup, 4x4 extended cab truck, 236 00:14:38,180 --> 00:14:41,738 Taylor caddy terminal tractor, three quarter ton truck utility 237 00:14:41,738 --> 00:14:46,650 body with crane and a trailer caddy terminal tractor. 238 00:14:46,650 --> 00:14:48,650 Total capital equipment $455,749. 239 00:14:50,580 --> 00:14:56,658 For the water and Sewer Projects fund or replacement and renewal 240 00:14:58,330 --> 00:14:59,310 projects fund. 241 00:14:59,310 --> 00:15:01,500 There were quite a few projects I 242 00:15:01,500 --> 00:15:03,250 won't go through the entire list with you. 243 00:15:03,250 --> 00:15:06,770 But some of the major ones include 6.6 million 244 00:15:06,770 --> 00:15:11,100 in wastewater treatment plant design which is grant funded. 245 00:15:11,100 --> 00:15:15,210 Sewer lining Cdbg Florida Commerce of 1.5 million 246 00:15:15,530 --> 00:15:19,343 which is also a good portion grant funded. 247 00:15:19,343 --> 00:15:21,343 Total projects 12,765,000. 248 00:15:25,530 --> 00:15:29,730 For the Solid waste fund, expenses preliminary 249 00:15:32,236 --> 00:15:35,600 estimates from the compensation classification 250 00:15:35,600 --> 00:15:36,890 incorporated into the budget. 251 00:15:36,890 --> 00:15:39,130 The estimated impact to the Solid Waste Fund 252 00:15:39,130 --> 00:15:43,210 is 8.2%, dependent on the approval of the budget. 253 00:15:43,210 --> 00:15:45,103 Majority of the operating expenses 254 00:15:45,103 --> 00:15:48,703 had inflationary increases plus or -5%. 255 00:15:49,210 --> 00:15:52,970 No staff was added to the next year budget. 256 00:15:52,970 --> 00:15:57,170 Capital outlay request to refuse trucks at 611,600. 257 00:15:57,410 --> 00:15:59,810 Total outstanding debt 4.5 million. 258 00:16:05,450 --> 00:16:06,794 Stormwater updates. 259 00:16:06,794 --> 00:16:11,938 So he was one of the major updates since the last two 260 00:16:11,938 --> 00:16:13,230 budget workshops. 261 00:16:13,230 --> 00:16:17,900 For the stormwater we had the rate consultant present rates 262 00:16:17,900 --> 00:16:19,470 and impact fees at the June workshop. 263 00:16:19,470 --> 00:16:23,700 After extensive further review by staff, 264 00:16:23,126 --> 00:16:26,225 it was determined that the five year Capital Improvement 265 00:16:26,225 --> 00:16:29,390 plan should be divided among several projects 266 00:16:29,390 --> 00:16:32,700 into design, engineering and construction phases. 267 00:16:32,700 --> 00:16:35,923 And prioritize them according to an achievable timeline. 268 00:16:35,923 --> 00:16:42,523 So the five year CIP was reduced from 103 million to 57 million. 269 00:16:43,883 --> 00:16:47,682 The following table gives you the high level revisions 270 00:16:47,682 --> 00:16:49,682 of the CIP. 271 00:16:52,970 --> 00:16:55,602 So as you see from the last version, 272 00:16:55,602 --> 00:16:59,970 we have allocated to design engineering and construction 273 00:16:59,970 --> 00:17:03,322 all of these projects highlighted in the Stormwater 274 00:17:03,322 --> 00:17:06,795 Master plan, and we have stretched out 275 00:17:06,795 --> 00:17:08,378 the timeline on some of these projects 276 00:17:08,378 --> 00:17:12,578 to make them more realistic and achievable. 277 00:17:14,570 --> 00:17:20,190 So for those stormwater updates we reached out to the consultant 278 00:17:20,190 --> 00:17:23,250 to have him refigure the numbers. 279 00:17:23,250 --> 00:17:28,300 The previously proposed rates compared to the revised rates, 280 00:17:28,300 --> 00:17:31,690 for fiscal year 27 we're holding that $5 and three cent 281 00:17:31,690 --> 00:17:34,286 increase for stormwater, but you'll 282 00:17:34,286 --> 00:17:38,162 notice that the four outer years, approximately five half 283 00:17:38,162 --> 00:17:39,903 of the original right path. 284 00:17:39,903 --> 00:17:42,390 And then for the impact fees update, 285 00:17:42,390 --> 00:17:46,590 the previously proposed 1450 is now revised to 870 000. 286 00:17:52,100 --> 00:17:55,100 So operating expenses, excuse me. 287 00:17:56,780 --> 00:17:59,290 Preliminary estimates on the compensation classification. 288 00:17:59,290 --> 00:18:03,322 The estimated impact for the stormwater fund is 5.9%. 289 00:18:03,322 --> 00:18:06,690 Again dependent upon approval of the budget. 290 00:18:06,690 --> 00:18:09,210 Includes capital outlay and projects, 291 00:18:09,210 --> 00:18:11,650 timing other projects vary year to year 292 00:18:11,650 --> 00:18:15,520 so you'll see fluctuations for this project fund. 293 00:18:15,520 --> 00:18:20,320 For stormwater staff requested constant from prior year, 294 00:18:21,530 --> 00:18:23,930 total outstanding debt 3.4 million, 295 00:18:24,330 --> 00:18:26,730 capital outlay walking excavator, 296 00:18:27,140 --> 00:18:33,740 dump body truck and tilt tech trailer for a total of 771,820. 297 00:18:38,810 --> 00:18:40,810 Stormwater projects. 298 00:18:41,236 --> 00:18:46,636 The capital projects include for fiscal year 27, pump station 299 00:18:46,930 --> 00:18:51,563 design from mango and Queen, 27 to 9 Canal engineering. 300 00:18:51,563 --> 00:18:53,963 18 Street Canal improvement design, 301 00:18:54,740 --> 00:18:57,290 refuse pond pump mango 12th design, 302 00:18:57,290 --> 00:18:59,276 stormwater infrastructure upgrades, 303 00:18:59,276 --> 00:19:02,130 for total projects of 6.8 million. 304 00:19:02,130 --> 00:19:05,638 You will note that the approved CIP 305 00:19:05,638 --> 00:19:09,103 is dependent not only on the five year rate path, 306 00:19:09,103 --> 00:19:12,210 but as well as the stormwater impact fees. 307 00:19:12,210 --> 00:19:15,250 So they go hand in hand when funding the CIP program 308 00:19:15,250 --> 00:19:17,250 before you. 309 00:19:18,500 --> 00:19:21,500 For the internal service funds. 310 00:19:21,810 --> 00:19:25,350 So these are the funds that are working 311 00:19:25,350 --> 00:19:28,330 for all of our general fund and enterprise funds. 312 00:19:28,330 --> 00:19:31,930 So we have information technology, fleet, 313 00:19:32,290 --> 00:19:35,200 property liability fund which is your insurance for all 314 00:19:35,200 --> 00:19:37,990 of your properties and vehicles, health Insurance fund 315 00:19:37,990 --> 00:19:40,450 which tracks all of the health insurance costs, 316 00:19:40,450 --> 00:19:42,450 and workers compensation. 317 00:19:47,930 --> 00:19:52,580 In summary, proposed budget is based on 6.33 318 00:19:52,580 --> 00:19:54,570 holding the operating millage flat. 319 00:19:54,570 --> 00:19:56,570 Taxable value $2,360,128,081. 320 00:19:57,210 --> 00:20:03,810 The voted debt service for the Gopher Parks debt service is 321 00:20:06,730 --> 00:20:07,680 0.050. 322 00:20:07,680 --> 00:20:10,800 City wide balanced budget $128,179,325. 323 00:20:12,603 --> 00:20:16,203 Again it's a minor fluctuations expected 324 00:20:18,310 --> 00:20:19,862 between now and September. 325 00:20:19,862 --> 00:20:22,370 But we'll provide that updated information. 326 00:20:22,370 --> 00:20:27,170 General Fund budget 42 million, 1.9 in Special revenue funds, 327 00:20:28,260 --> 00:20:31,860 the Debt service 396 thousand, capital projects 10,673,930, 328 00:20:34,210 --> 00:20:39,100 Enterprise funds 64 million, and 8.6 million in internal service 329 00:20:43,470 --> 00:20:44,120 funds. 330 00:20:44,120 --> 00:20:49,500 So high level summary of the entire operating budget, 331 00:20:49,500 --> 00:20:51,810 budget workshops for the public hearing will be September 14th 332 00:20:51,810 --> 00:20:55,410 and September 28th at 6 p.m.. 333 00:20:56,630 --> 00:21:00,263 And hopefully I didn't go too quickly, 334 00:21:00,510 --> 00:21:03,250 get to have a cream at lunch. 335 00:21:03,250 --> 00:21:10,450 Can I answer any questions or defer to team for any questions? 336 00:21:16,573 --> 00:21:18,973 >> Are there any questions? 337 00:21:23,713 --> 00:21:29,113 >> For page 27 the revised five years (Indistinct) just taking 338 00:21:29,718 --> 00:21:34,000 it in -- page 27 the revised five year CIP we're just taking 339 00:21:34,000 --> 00:21:36,930 projects and spreading them out over a longer period of time? 340 00:21:36,930 --> 00:21:38,930 >> Yes Ma'am. 341 00:21:39,730 --> 00:21:43,450 >> All that design engineering is going to be in this next 342 00:21:43,450 --> 00:21:44,930 fiscal year? 343 00:21:44,930 --> 00:21:48,823 Construction for example mango Pond is not till 2029 2030. 344 00:21:48,823 --> 00:21:51,610 Been a few years ahead of us. 345 00:21:51,610 --> 00:21:53,610 >> Yes Ma'am. 346 00:21:54,530 --> 00:21:58,970 >> What projects do we do out of the tree fund last year? 347 00:21:58,970 --> 00:22:04,370 >> Last year in 25, Ryan or Jeff do you -- 348 00:22:04,467 --> 00:22:07,900 I know there was -- so Merchants Park was either last year 349 00:22:07,900 --> 00:22:10,550 or the year before I know we spent approximately 3000 350 00:22:10,550 --> 00:22:14,150 in matching funds to some grants. 351 00:22:14,623 --> 00:22:17,803 Out of the tree fund yes sir. 352 00:22:17,803 --> 00:22:21,690 And then for current fiscal year in 26 that 180,000 that I 353 00:22:21,690 --> 00:22:24,900 mentioned earlier, let's say. 354 00:22:24,370 --> 00:22:30,500 Menard may landscaping but for future city hall, public works 355 00:22:30,500 --> 00:22:33,690 utility staging lot landscaping, public works site landscaping 356 00:22:33,690 --> 00:22:38,690 park town landscaping so quite a few uses for Citywide projects. 357 00:22:38,690 --> 00:22:41,690 >> 100,000 that we could have received. 358 00:22:41,780 --> 00:22:42,990 Gotcha thank you. 359 00:22:42,990 --> 00:22:45,990 Just wanted to make sure. 360 00:22:46,130 --> 00:22:51,272 >> Another question I'm sorry -- if we did not improve 361 00:22:51,272 --> 00:22:55,570 the utility increase can you tell me example what could have 362 00:22:55,570 --> 00:22:59,650 happened as far as the CIP in the next five years? 363 00:22:59,650 --> 00:23:02,650 >> Sure so combination of variables. 364 00:23:02,890 --> 00:23:06,170 If we did not increase the rates at all this year we would have 365 00:23:06,170 --> 00:23:08,730 had to go back for stormwater we would 366 00:23:08,730 --> 00:23:11,258 have had to remove pretty much all of the projects. 367 00:23:11,258 --> 00:23:12,880 Within the CIP plan. 368 00:23:12,880 --> 00:23:15,910 Water and sewer, we would have had to review that 369 00:23:15,910 --> 00:23:17,700 completely again. 370 00:23:17,700 --> 00:23:20,938 CIP projects being a large portion of those funds. 371 00:23:20,938 --> 00:23:24,390 And then further, if you recall the rate consultant 372 00:23:24,390 --> 00:23:27,450 presented that even to fund current year wage 373 00:23:27,450 --> 00:23:30,450 increases for employees, and then 374 00:23:30,503 --> 00:23:33,503 operating operational lines, potentially level 375 00:23:33,790 --> 00:23:35,402 of service impact. 376 00:23:35,402 --> 00:23:35,958 So. 377 00:23:35,958 --> 00:23:39,570 Those are the types of things that by not increasing 378 00:23:39,570 --> 00:23:42,810 the rates, we would have to go back to the drawing board. 379 00:23:42,810 --> 00:23:46,390 >> Which would be detrimental to the city so I just wanted 380 00:23:46,390 --> 00:23:48,890 to kind of get an overview of what could have happened if it 381 00:23:48,890 --> 00:23:50,610 had not paid us so thank you. 382 00:23:50,610 --> 00:23:54,270 >> What it comes down to is that's one of our only sources 383 00:23:54,270 --> 00:23:57,730 of income which is kind of sad and we're playing a lot 384 00:23:57,730 --> 00:24:01,170 of projects in the past and we are where we are, 385 00:24:01,170 --> 00:24:03,490 well funded in the past but. 386 00:24:03,490 --> 00:24:06,490 >> We could have jeopardized grants. 387 00:24:08,408 --> 00:24:10,450 >> -- versus regular tax. 388 00:24:10,450 --> 00:24:14,150 >> We could have jeopardized receiving grants because just 389 00:24:14,150 --> 00:24:17,878 like any loan applicant, they want to see your income. 390 00:24:17,878 --> 00:24:19,870 If you don't make enough money, you're 391 00:24:19,870 --> 00:24:21,898 really going to get a higher interest rate 392 00:24:21,898 --> 00:24:24,616 or you're not going to get anything. 393 00:24:24,616 --> 00:24:28,250 We want to be in a stronger loan to value I guess it's called 394 00:24:28,250 --> 00:24:29,410 or -- 395 00:24:29,410 --> 00:24:33,370 >> Absolutely so our reserve balances as well as our income 396 00:24:33,370 --> 00:24:36,690 streams are reviewed in any financing opportunities. 397 00:24:36,690 --> 00:24:38,410 Including grant opportunities. 398 00:24:38,410 --> 00:24:41,370 So it does have an impact on those opportunities as well. 399 00:24:41,370 --> 00:24:42,170 Yes sir. 400 00:24:42,170 --> 00:24:45,770 >> And my main question is because we are a government 401 00:24:45,770 --> 00:24:49,554 and one of the things is scariest in the United States is 402 00:24:49,554 --> 00:24:50,882 our debt. 403 00:24:50,882 --> 00:24:54,210 How successfully are we managing ours? 404 00:24:54,210 --> 00:24:58,466 I mean plan to get it down or is it always -- 405 00:24:58,466 --> 00:25:01,796 over key question are we always going to have a decent amount 406 00:25:01,796 --> 00:25:04,948 of debt is our goal to like, we're never going to be debt 407 00:25:04,948 --> 00:25:07,972 free but I'm just curious (Indistinct) 408 00:25:07,972 --> 00:25:09,403 >> Filed for bankruptcy before. 409 00:25:09,403 --> 00:25:11,690 Good job of getting it down. 410 00:25:11,690 --> 00:25:13,690 >> Really? 411 00:25:14,900 --> 00:25:18,634 >> So as a municipality we have done a tremendous job over 412 00:25:18,634 --> 00:25:22,650 the years of refinancing debt, bringing on debt that is 413 00:25:22,650 --> 00:25:23,920 realistic manageable. 414 00:25:23,920 --> 00:25:26,495 And in good purpose right? 415 00:25:26,495 --> 00:25:28,836 So typically speaking, you would look 416 00:25:28,836 --> 00:25:30,856 to, as a person right individual, 417 00:25:30,856 --> 00:25:34,362 would mortgage their home, they would finance a vehicle, 418 00:25:34,362 --> 00:25:36,490 but you typically don't want to finance 419 00:25:36,490 --> 00:25:40,340 your ongoing going to the grocery store, 420 00:25:40,340 --> 00:25:41,890 buying fuel so forth. 421 00:25:41,890 --> 00:25:43,960 We all use the credit cards to pay for that 422 00:25:43,960 --> 00:25:46,930 and turn around and pay that off right? 423 00:25:46,930 --> 00:25:49,564 But for fiscal sustainability, some of the major areas, 424 00:25:49,564 --> 00:25:50,500 it is appropriate. 425 00:25:50,500 --> 00:25:53,630 It is sustainable to take on debt. 426 00:25:53,630 --> 00:25:54,370 For realistic areas. 427 00:25:54,370 --> 00:25:57,270 But to finance for ongoing operations 428 00:25:57,270 --> 00:25:59,810 is not necessarily a good practice. 429 00:25:59,810 --> 00:26:02,290 So I think overall the city of Edgewater 430 00:26:02,290 --> 00:26:04,922 has done a tremendous job of finding that balance 431 00:26:04,922 --> 00:26:08,330 and making sure that we're not overextending ourselves. 432 00:26:08,330 --> 00:26:13,595 >> Because another way that we could lower our costs is to have 433 00:26:13,595 --> 00:26:15,365 less interest. 434 00:26:15,365 --> 00:26:19,632 Like getting a 0% credit card and paying off a high -- 435 00:26:19,632 --> 00:26:22,762 I mean there's probably manage it in ways, 436 00:26:22,762 --> 00:26:27,480 that's why I'm just wondering how we go about -- 437 00:26:27,480 --> 00:26:29,980 >> There's also the balance too if you know of the long term 438 00:26:29,980 --> 00:26:30,605 infrastructure. 439 00:26:30,605 --> 00:26:32,594 So again the mortgage and vehicle examples, 440 00:26:32,594 --> 00:26:35,880 for some of the projects that are going to be longer term, 441 00:26:35,880 --> 00:26:38,469 that actually helps you smooth out the rate impact. 442 00:26:38,469 --> 00:26:44,530 So as you're taking on debt for a big project that's 443 00:26:44,530 --> 00:26:47,101 going to last the next 20 to 30 years, 444 00:26:47,101 --> 00:26:50,596 then that debt payment is over the next 20 to 30 years. 445 00:26:50,596 --> 00:26:53,416 Again back to your other note of making sure 446 00:26:53,416 --> 00:26:55,565 that we're balancing the interest rates, 447 00:26:55,565 --> 00:26:58,813 the cost associated with financing and doing 448 00:26:58,813 --> 00:27:02,146 so that is in the best interest of the ratepayers 449 00:27:02,146 --> 00:27:04,530 in the taxpayers of the community. 450 00:27:04,530 --> 00:27:06,530 >> I'm just curious. 451 00:27:07,112 --> 00:27:10,238 I have no idea who we borrow money 452 00:27:10,238 --> 00:27:11,970 from other than the government. 453 00:27:11,970 --> 00:27:14,470 What kind of rate does the city normally get? 454 00:27:14,470 --> 00:27:18,170 Is it like ten or is it like 17 like a credit card or? 455 00:27:18,170 --> 00:27:21,170 >> It depends on the economy. 456 00:27:22,370 --> 00:27:23,950 It depends on so many variables. 457 00:27:23,950 --> 00:27:28,750 So our current fiscal picture if you will. 458 00:27:29,323 --> 00:27:32,200 It varies on how your financing right? 459 00:27:32,200 --> 00:27:34,630 So water and sewer projects can oftentimes 460 00:27:34,630 --> 00:27:39,210 be financed through SRF or the state revolving fund program. 461 00:27:39,210 --> 00:27:41,380 They have much lower interest rates. 462 00:27:41,380 --> 00:27:44,380 You're talking around the 1% 2%, sometimes 463 00:27:44,490 --> 00:27:47,418 you can even get grant forgiveness. 464 00:27:47,418 --> 00:27:50,290 So they give you a loan but then they turn around 465 00:27:50,290 --> 00:27:52,330 and say okay we're going to, it's 466 00:27:52,330 --> 00:27:53,958 a principal forgiveness loan program 467 00:27:53,958 --> 00:27:55,250 so they'll forgive the balance. 468 00:27:55,250 --> 00:27:57,875 So that is something that we're looking into for the wastewater 469 00:27:57,875 --> 00:27:58,570 treatment plant. 470 00:27:58,570 --> 00:28:02,626 We have approximately 19 million worth of grant forgiveness 471 00:28:02,626 --> 00:28:04,234 type of loan. 472 00:28:04,234 --> 00:28:07,438 Now other areas, if you're going out for, 473 00:28:07,438 --> 00:28:11,170 we always go out for solicitation for debt right? 474 00:28:11,170 --> 00:28:13,660 So we work with financial advisor. 475 00:28:13,660 --> 00:28:15,962 And we will broadcast that solicitation 476 00:28:15,962 --> 00:28:18,763 to get the best rate possible for the city. 477 00:28:18,763 --> 00:28:22,720 Now over the years, that rate has fluctuated for governments. 478 00:28:22,720 --> 00:28:26,762 Typically a much better interest rate for governments right? 479 00:28:26,762 --> 00:28:31,936 So we can get tax benefits for our borrowing. 480 00:28:31,936 --> 00:28:34,356 We also have to go through loops of tax rebate 481 00:28:34,356 --> 00:28:37,570 but I won't bore you because that's accounting geek stuff. 482 00:28:37,570 --> 00:28:41,530 But we do get much lower rates, currently anywhere 483 00:28:41,530 --> 00:28:44,795 between 3 to 5% on some of these major borrowings. 484 00:28:44,795 --> 00:28:47,290 But again, it varies about the time 485 00:28:47,290 --> 00:28:48,906 that you're going out for financing, 486 00:28:48,906 --> 00:28:52,803 it matters how much do you have in reserves? 487 00:28:52,803 --> 00:28:53,841 How do your revenues? 488 00:28:53,841 --> 00:28:55,292 How does your balance sheet look? 489 00:28:55,292 --> 00:28:56,930 They look at all of those variables. 490 00:28:56,930 --> 00:29:01,143 >> So the city has like a credit rating and from your answers I 491 00:29:01,143 --> 00:29:04,250 can tell your rate shopping constantly so thank you. 492 00:29:04,250 --> 00:29:06,250 >> Yes sir. 493 00:29:08,490 --> 00:29:10,890 >> And we are adjourned.