>> I call to order the city of Edgewater Budget Workshop
for August 10th 2026.
Roll call.
[Roll call]
>> City clerk Kilburg.
>> I don't think you're microphone was on so that was
just roll call.
Item one budget presentation discussions
item a city wide recap.
>> Good evening mayor and council Bridget asking here
finance director with the city of Edgewater.
We have our amazing team here present throughout the budget
workshop as they put so much effort into it and huge thanks
to the entire team for helping with this.
So this afternoon August 10th 4 p.m.
We're just going to be going through a recap
of like highlights from the June and July workshop.
Handful of some pretty significant changes
from the last workshops.
Working budget.
We should have maybe some just minor fluctuations between now
and September budget.
Finalizing the budget for September public hearings.
So.
So again, work in progress.
We're still waiting on the final data related to the compensation
and classification study.
But we have received preliminary estimates
to incorporate into our budget model.
So we have incorporated that.
Additional updates may be needed prior to the budget presentation
in September, management team are
reviewing the potential impact of tax reform legislation.
And are taking proactive measures
during the current fiscal year.
So the tax homestead reform financial impact
as most are aware, legislation was recently passed
and they're planning on putting on the ballot
some tax reform measures that would
increase homestead exemptions to homeowners throughout Florida.
The estimated impact of this ad valorem revenue reduction
would be approximately 5 million within the first couple
of years of implementation.
3.5 million for fiscal year 28 and 1.5 million for fiscal year
29.
Smaller reductions in years thereafter.
So what are ways that we can offset that?
A potential offsets for the revenue reduction
include estimated fire assessment increases,
currently our fire assessment is $50.
If we were to increase it to around 300
per home which would be closer to the full burden of fire
services, it would be approximately $300 million
of increased revenue.
Other areas that we have within our control
would be increasing the millage, a half mill
increase from 6.33 to 6.83.
Would be an increase in revenue of approximately 650,000
for just the non-homestead properties.
We wanted to evaluate it without the homesteaded properties
knowing that they would have much less revenue impact.
Reduction in level of service and staffing levels
is another area that is within our control.
Reduction in wages falling below recommended compensation study
salaries.
And reduction in capital, parks paving and equipment.
So we're all watching and monitoring
the upcoming legislation and having internal discussions
to be prepared.
The fiscal year 2027 budget proposed budget
is balanced based on holding the millage flat at 6.33.
Estimated revenue $14,192,630, approximately 42.26
of our general fund recurring revenues is made up of ad
valorem taxes.
The fire assessment based on the $50 per resident,
also the per square foot application for commercial
industrial and institutional properties,
has an estimated revenue of $641,771.
So the chart this evening here is the general fund recurring
revenues, we isolated the one time grant amounts,
that way it's a more representative picture
of the recurring revenue streams.
Again 42% ad valorem.
The charges for services, other taxes, sales tax,
Intergovernmental such as state shared revenues.
And a lot of these slides come up
because there were a lot of areas that held constant
from the prior two workshops, go through pretty quickly,
but if you do have areas that you want me to slow down,
please let me know.
The general fund staff, we are using existing staff for budget
this fiscal year 27.
No staff are currently being added,
as positions become vacant will be reviewed on a case by case
basis before filling.
Preliminary estimates from the compensation classification
were included in the updated proposed budget.
The estimated impact to General fund is 9.1%.
This includes estimated increase of 7% for health
and dental insurance.
The General fund expenditure by type,
again salaries and benefits are a huge portion
of the General Fund.
So 63, almost 64% of the general funds budget is personnel cost.
Operating line items 24.47%, and then other debt service
transfers capital purchases, making up
a smaller portion of the general fund expenditures.
For fiscal year 2027, capital outlay that
has been included in the proposed budget.
We have a handful of vehicles for economic development
services.
Fire Department, streets department,
mower for streets, parks and rec,
to Utvs, two trucks, and a three quarter ton truck,
parks right on sand bunker rake and police department
docking stations for mobile units.
So a total of 559,480 in capital equipment needs for fiscal year
27.
There are additional vehicles and equipment
reviewed on later slides qualifying for police impact fee
use.
For the general fund reserves, as of 930 2025,
there was $17,833,178.
Charter reserves minimum 15% requirement is 4.6 million.
Use of fund balance in our fiscal year 27 proposed budget
includes using 1.2 million.
The designated Fire ladder truck set aside in 25 was 300,000.
Designated fire ladder truck set aside for an internal loan
to be repaid with impact fees, 1 million.
Park Town Phase two and three obligation of 1.3 million.
Cash flow major grants stormwater loan 2 million.
Transitional funds for tax reform, 2 million.
Estimated operating reserves at 17% for two months, 5.2 million.
Leaving an unassigned fund balance remaining of $91,804.
We also have designated City Hall balance of $489,133.
Within the Capital Projects Fund for fiscal year 27,
we have paving projects included of 800 000,
of that amount approximately 290,000 is estimated to be local
option gas tax funded.
We have dirt road reduction, sidewalks, central,
Hawks Park rotary Park and Boat ramp
are some of the major capital projects.
The boat ramp is anticipated to be funded
through grant and impact fees.
So total capital projects included in the proposed budget,
$11,508,330.
We have 834,400 and Parks and Rec impact in current fiscal
year that has been earmarked for that boat ramp project to carry
forward into next year.
No major changes for the Special revenue funds
since last workshop.
A multimodal impact fees estimated available 1.5 million.
Anticipated uses include Jones Fish Camp Road and Silver Palm
Sidewalk.
Police impact fees estimated 410 available.
We have training station and boat ramp
identified as potential uses.
Fire impact fees, we are estimating setting aside 350 000
additional in upcoming fiscal year for the fire truck.
And then that would leave a remaining 296 available
as we review and get closer to receiving the truck we'll
review the available balance and how much
we would need remaining.
Recreation impact fees estimated 32,000 available.
Again we set aside a portion for the boat ramp.
Projects are being reviewed assumes that additional 132,829
impact fee collections prior to the start of that project.
General governmental buildings impact fee of 184,000.
The CRA or Community Redevelopment Agency has 886,000
and estimated revenues.
And that's going to be used towards land acquisition
and streetscape projects.
Tree Mitigation Fund currently has about 7599,
if you all recall during one of the budget amendments this year,
the allocated a portion of the tree mitigation funds
to various projects throughout the city.
The -- .
>> Just one question so the Tree Mitigation fund is that like
if a developer comes in and wants to clear down a facility
like we've seen recently it would go into that fund?
So we only have 759 9000 -- $7,599 in that fund so we can
potentially have it 100 000 so.
>> That is correct keeping in mind that we did have
approximately 180 thousand that we allocated in current fiscal
year budget.
That is in the process.
The scholarship fund has estimated available 5000.
We do receive quite a bit during the Princess Ball each year,
and that goes into that fund for scholarships being given out
for Edgewater students.
A special law enforcement trust fund estimated available 47000.
Opioid Settlement Trust Fund, estimated available 800.
The grant fund currently has a million earmarked for city metro
requested for appropriations for stormwater projects and then we
have 1,079,000 that was set aside for the canal armoring
Cdbg 386 match.
Arpa Economic Impact Fund estimated available 784,730.
Citywide debt is $29,650,386.
For the enterprise funds, we have fee resolution that was
approved at the August 3rd meeting.
That was incorporated into fiscal year 27 proposed budget.
The rates were held flat in prior year,
so water and sewer fund proposed 4.5% increase
for water and sewer.
That includes 42.4 million in debt for the wastewater
treatment plant and fiscal year 31, and 10 million
in waterline and other projects in fiscal year 29.
Charges for service increased an estimated 1.2 million,
a portion of which relates to a new counts.
For the solid waste one proposed a 3% increase for refuse charges
currently 29.71 residential to 30.60.
Estimated increase in charges for service is $333,965.
This also includes the new account additions.
The recycling side of solid waste fund
is anticipated to remain at $8 monthly,
keeping in mind that verbiage was added to the November ballot
and that is to get feedback on if customers would like
to retain recycling services.
The stormwater fund proposed a $5 and three cent increase
from its current $14.58 residential.
The estimated increase would generate 1 million
in charges for service.
For the water and sewer fund operating expenses,
the preliminary estimates were included from the compensation
classification.
The estimated impact to the water and sewer fund
is 7.5%, dependent on approval of the budget.
Majority of the operating expenses
had inflationary increases plus or -5%.
There were no new staff added for this fund.
And the total outstanding debt is currently $18,308,269.
Water and sewer capital outlay that
was included in the fiscal year 27 proposed budget,
includes a tilt deck equipment trailer.
Light duty pickup, 4x4 extended cab truck,
Taylor caddy terminal tractor, three quarter ton truck utility
body with crane and a trailer caddy terminal tractor.
Total capital equipment $455,749.
For the water and Sewer Projects fund or replacement and renewal
projects fund.
There were quite a few projects I
won't go through the entire list with you.
But some of the major ones include 6.6 million
in wastewater treatment plant design which is grant funded.
Sewer lining Cdbg Florida Commerce of 1.5 million
which is also a good portion grant funded.
Total projects 12,765,000.
For the Solid waste fund, expenses preliminary
estimates from the compensation classification
incorporated into the budget.
The estimated impact to the Solid Waste Fund
is 8.2%, dependent on the approval of the budget.
Majority of the operating expenses
had inflationary increases plus or -5%.
No staff was added to the next year budget.
Capital outlay request to refuse trucks at 611,600.
Total outstanding debt 4.5 million.
Stormwater updates.
So he was one of the major updates since the last two
budget workshops.
For the stormwater we had the rate consultant present rates
and impact fees at the June workshop.
After extensive further review by staff,
it was determined that the five year Capital Improvement
plan should be divided among several projects
into design, engineering and construction phases.
And prioritize them according to an achievable timeline.
So the five year CIP was reduced from 103 million to 57 million.
The following table gives you the high level revisions
of the CIP.
So as you see from the last version,
we have allocated to design engineering and construction
all of these projects highlighted in the Stormwater
Master plan, and we have stretched out
the timeline on some of these projects
to make them more realistic and achievable.
So for those stormwater updates we reached out to the consultant
to have him refigure the numbers.
The previously proposed rates compared to the revised rates,
for fiscal year 27 we're holding that $5 and three cent
increase for stormwater, but you'll
notice that the four outer years, approximately five half
of the original right path.
And then for the impact fees update,
the previously proposed 1450 is now revised to 870 000.
So operating expenses, excuse me.
Preliminary estimates on the compensation classification.
The estimated impact for the stormwater fund is 5.9%.
Again dependent upon approval of the budget.
Includes capital outlay and projects,
timing other projects vary year to year
so you'll see fluctuations for this project fund.
For stormwater staff requested constant from prior year,
total outstanding debt 3.4 million,
capital outlay walking excavator,
dump body truck and tilt tech trailer for a total of 771,820.
Stormwater projects.
The capital projects include for fiscal year 27, pump station
design from mango and Queen, 27 to 9 Canal engineering.
18 Street Canal improvement design,
refuse pond pump mango 12th design,
stormwater infrastructure upgrades,
for total projects of 6.8 million.
You will note that the approved CIP
is dependent not only on the five year rate path,
but as well as the stormwater impact fees.
So they go hand in hand when funding the CIP program
before you.
For the internal service funds.
So these are the funds that are working
for all of our general fund and enterprise funds.
So we have information technology, fleet,
property liability fund which is your insurance for all
of your properties and vehicles, health Insurance fund
which tracks all of the health insurance costs,
and workers compensation.
In summary, proposed budget is based on 6.33
holding the operating millage flat.
Taxable value $2,360,128,081.
The voted debt service for the Gopher Parks debt service is
0.050.
City wide balanced budget $128,179,325.
Again it's a minor fluctuations expected
between now and September.
But we'll provide that updated information.
General Fund budget 42 million, 1.9 in Special revenue funds,
the Debt service 396 thousand, capital projects 10,673,930,
Enterprise funds 64 million, and 8.6 million in internal service
funds.
So high level summary of the entire operating budget,
budget workshops for the public hearing will be September 14th
and September 28th at 6 p.m..
And hopefully I didn't go too quickly,
get to have a cream at lunch.
Can I answer any questions or defer to team for any questions?
>> Are there any questions?
>> For page 27 the revised five years (Indistinct) just taking
it in -- page 27 the revised five year CIP we're just taking
projects and spreading them out over a longer period of time?
>> Yes Ma'am.
>> All that design engineering is going to be in this next
fiscal year?
Construction for example mango Pond is not till 2029 2030.
Been a few years ahead of us.
>> Yes Ma'am.
>> What projects do we do out of the tree fund last year?
>> Last year in 25, Ryan or Jeff do you --
I know there was -- so Merchants Park was either last year
or the year before I know we spent approximately 3000
in matching funds to some grants.
Out of the tree fund yes sir.
And then for current fiscal year in 26 that 180,000 that I
mentioned earlier, let's say.
Menard may landscaping but for future city hall, public works
utility staging lot landscaping, public works site landscaping
park town landscaping so quite a few uses for Citywide projects.
>> 100,000 that we could have received.
Gotcha thank you.
Just wanted to make sure.
>> Another question I'm sorry -- if we did not improve
the utility increase can you tell me example what could have
happened as far as the CIP in the next five years?
>> Sure so combination of variables.
If we did not increase the rates at all this year we would have
had to go back for stormwater we would
have had to remove pretty much all of the projects.
Within the CIP plan.
Water and sewer, we would have had to review that
completely again.
CIP projects being a large portion of those funds.
And then further, if you recall the rate consultant
presented that even to fund current year wage
increases for employees, and then
operating operational lines, potentially level
of service impact.
So.
Those are the types of things that by not increasing
the rates, we would have to go back to the drawing board.
>> Which would be detrimental to the city so I just wanted
to kind of get an overview of what could have happened if it
had not paid us so thank you.
>> What it comes down to is that's one of our only sources
of income which is kind of sad and we're playing a lot
of projects in the past and we are where we are,
well funded in the past but.
>> We could have jeopardized grants.
>> -- versus regular tax.
>> We could have jeopardized receiving grants because just
like any loan applicant, they want to see your income.
If you don't make enough money, you're
really going to get a higher interest rate
or you're not going to get anything.
We want to be in a stronger loan to value I guess it's called
or --
>> Absolutely so our reserve balances as well as our income
streams are reviewed in any financing opportunities.
Including grant opportunities.
So it does have an impact on those opportunities as well.
Yes sir.
>> And my main question is because we are a government
and one of the things is scariest in the United States is
our debt.
How successfully are we managing ours?
I mean plan to get it down or is it always --
over key question are we always going to have a decent amount
of debt is our goal to like, we're never going to be debt
free but I'm just curious (Indistinct)
>> Filed for bankruptcy before.
Good job of getting it down.
>> Really?
>> So as a municipality we have done a tremendous job over
the years of refinancing debt, bringing on debt that is
realistic manageable.
And in good purpose right?
So typically speaking, you would look
to, as a person right individual,
would mortgage their home, they would finance a vehicle,
but you typically don't want to finance
your ongoing going to the grocery store,
buying fuel so forth.
We all use the credit cards to pay for that
and turn around and pay that off right?
But for fiscal sustainability, some of the major areas,
it is appropriate.
It is sustainable to take on debt.
For realistic areas.
But to finance for ongoing operations
is not necessarily a good practice.
So I think overall the city of Edgewater
has done a tremendous job of finding that balance
and making sure that we're not overextending ourselves.
>> Because another way that we could lower our costs is to have
less interest.
Like getting a 0% credit card and paying off a high --
I mean there's probably manage it in ways,
that's why I'm just wondering how we go about --
>> There's also the balance too if you know of the long term
infrastructure.
So again the mortgage and vehicle examples,
for some of the projects that are going to be longer term,
that actually helps you smooth out the rate impact.
So as you're taking on debt for a big project that's
going to last the next 20 to 30 years,
then that debt payment is over the next 20 to 30 years.
Again back to your other note of making sure
that we're balancing the interest rates,
the cost associated with financing and doing
so that is in the best interest of the ratepayers
in the taxpayers of the community.
>> I'm just curious.
I have no idea who we borrow money
from other than the government.
What kind of rate does the city normally get?
Is it like ten or is it like 17 like a credit card or?
>> It depends on the economy.
It depends on so many variables.
So our current fiscal picture if you will.
It varies on how your financing right?
So water and sewer projects can oftentimes
be financed through SRF or the state revolving fund program.
They have much lower interest rates.
You're talking around the 1% 2%, sometimes
you can even get grant forgiveness.
So they give you a loan but then they turn around
and say okay we're going to, it's
a principal forgiveness loan program
so they'll forgive the balance.
So that is something that we're looking into for the wastewater
treatment plant.
We have approximately 19 million worth of grant forgiveness
type of loan.
Now other areas, if you're going out for,
we always go out for solicitation for debt right?
So we work with financial advisor.
And we will broadcast that solicitation
to get the best rate possible for the city.
Now over the years, that rate has fluctuated for governments.
Typically a much better interest rate for governments right?
So we can get tax benefits for our borrowing.
We also have to go through loops of tax rebate
but I won't bore you because that's accounting geek stuff.
But we do get much lower rates, currently anywhere
between 3 to 5% on some of these major borrowings.
But again, it varies about the time
that you're going out for financing,
it matters how much do you have in reserves?
How do your revenues?
How does your balance sheet look?
They look at all of those variables.
>> So the city has like a credit rating and from your answers I
can tell your rate shopping constantly so thank you.
>> Yes sir.
>> And we are adjourned.