[0:04] >> I call to order the city of Edgewater Budget Workshop
[0:08] for August 10th 2026.
[0:10] Roll call.
[0:15] [Roll call]
[0:22] >> City clerk Kilburg.
[0:25] >> I don't think you're microphone was on so that was
[0:30] just roll call.
[0:31] Item one budget presentation discussions
[0:33] item a city wide recap.
[0:36] >> Good evening mayor and council Bridget asking here
[0:40] finance director with the city of Edgewater.
[0:42] We have our amazing team here present throughout the budget
[0:46] workshop as they put so much effort into it and huge thanks
[0:50] to the entire team for helping with this.
[0:52] So this afternoon August 10th 4 p.m.
[0:56] We're just going to be going through a recap
[0:59] of like highlights from the June and July workshop.
[1:02] Handful of some pretty significant changes
[1:05] from the last workshops.
[1:07] Working budget.
[1:09] We should have maybe some just minor fluctuations between now
[1:12] and September budget.
[1:14] Finalizing the budget for September public hearings.
[1:19] So.
[1:26] So again, work in progress.
[1:29] We're still waiting on the final data related to the compensation
[1:32] and classification study.
[1:33] But we have received preliminary estimates
[1:36] to incorporate into our budget model.
[1:38] So we have incorporated that.
[1:41] Additional updates may be needed prior to the budget presentation
[1:45] in September, management team are
[1:47] reviewing the potential impact of tax reform legislation.
[1:50] And are taking proactive measures
[1:52] during the current fiscal year.
[1:57] So the tax homestead reform financial impact
[2:01] as most are aware, legislation was recently passed
[2:05] and they're planning on putting on the ballot
[2:07] some tax reform measures that would
[2:09] increase homestead exemptions to homeowners throughout Florida.
[2:13] The estimated impact of this ad valorem revenue reduction
[2:17] would be approximately 5 million within the first couple
[2:20] of years of implementation.
[2:22] 3.5 million for fiscal year 28 and 1.5 million for fiscal year
[2:28] 29.
[2:29] Smaller reductions in years thereafter.
[2:31] So what are ways that we can offset that?
[2:37] A potential offsets for the revenue reduction
[2:40] include estimated fire assessment increases,
[2:42] currently our fire assessment is $50.
[2:45] If we were to increase it to around 300
[2:48] per home which would be closer to the full burden of fire
[2:53] services, it would be approximately $300 million
[2:56] of increased revenue.
[2:57] Other areas that we have within our control
[3:00] would be increasing the millage, a half mill
[3:04] increase from 6.33 to 6.83.
[3:06] Would be an increase in revenue of approximately 650,000
[3:10] for just the non-homestead properties.
[3:13] We wanted to evaluate it without the homesteaded properties
[3:16] knowing that they would have much less revenue impact.
[3:21] Reduction in level of service and staffing levels
[3:24] is another area that is within our control.
[3:26] Reduction in wages falling below recommended compensation study
[3:31] salaries.
[3:31] And reduction in capital, parks paving and equipment.
[3:35] So we're all watching and monitoring
[3:37] the upcoming legislation and having internal discussions
[3:41] to be prepared.
[3:46] The fiscal year 2027 budget proposed budget
[3:51] is balanced based on holding the millage flat at 6.33.
[3:56] Estimated revenue $14,192,630, approximately 42.26
[4:03] of our general fund recurring revenues is made up of ad
[4:08] valorem taxes.
[4:09] The fire assessment based on the $50 per resident,
[4:13] also the per square foot application for commercial
[4:16] industrial and institutional properties,
[4:19] has an estimated revenue of $641,771.
[4:26] So the chart this evening here is the general fund recurring
[4:30] revenues, we isolated the one time grant amounts,
[4:34] that way it's a more representative picture
[4:36] of the recurring revenue streams.
[4:39] Again 42% ad valorem.
[4:42] The charges for services, other taxes, sales tax,
[4:47] Intergovernmental such as state shared revenues.
[4:54] And a lot of these slides come up
[4:56] because there were a lot of areas that held constant
[4:58] from the prior two workshops, go through pretty quickly,
[5:02] but if you do have areas that you want me to slow down,
[5:05] please let me know.
[5:07] The general fund staff, we are using existing staff for budget
[5:11] this fiscal year 27.
[5:13] No staff are currently being added,
[5:16] as positions become vacant will be reviewed on a case by case
[5:19] basis before filling.
[5:20] Preliminary estimates from the compensation classification
[5:24] were included in the updated proposed budget.
[5:27] The estimated impact to General fund is 9.1%.
[5:31] This includes estimated increase of 7% for health
[5:36] and dental insurance.
[5:39] The General fund expenditure by type,
[5:44] again salaries and benefits are a huge portion
[5:48] of the General Fund.
[5:49] So 63, almost 64% of the general funds budget is personnel cost.
[5:55] Operating line items 24.47%, and then other debt service
[6:01] transfers capital purchases, making up
[6:03] a smaller portion of the general fund expenditures.
[6:07] For fiscal year 2027, capital outlay that
[6:12] has been included in the proposed budget.
[6:14] We have a handful of vehicles for economic development
[6:19] services.
[6:20] Fire Department, streets department,
[6:23] mower for streets, parks and rec,
[6:28] to Utvs, two trucks, and a three quarter ton truck,
[6:33] parks right on sand bunker rake and police department
[6:36] docking stations for mobile units.
[6:39] So a total of 559,480 in capital equipment needs for fiscal year
[6:45] 27.
[6:46] There are additional vehicles and equipment
[6:49] reviewed on later slides qualifying for police impact fee
[6:52] use.
[6:55] For the general fund reserves, as of 930 2025,
[7:00] there was $17,833,178.
[7:02] Charter reserves minimum 15% requirement is 4.6 million.
[7:09] Use of fund balance in our fiscal year 27 proposed budget
[7:14] includes using 1.2 million.
[7:17] The designated Fire ladder truck set aside in 25 was 300,000.
[7:23] Designated fire ladder truck set aside for an internal loan
[7:27] to be repaid with impact fees, 1 million.
[7:31] Park Town Phase two and three obligation of 1.3 million.
[7:36] Cash flow major grants stormwater loan 2 million.
[7:40] Transitional funds for tax reform, 2 million.
[7:43] Estimated operating reserves at 17% for two months, 5.2 million.
[7:49] Leaving an unassigned fund balance remaining of $91,804.
[7:54] We also have designated City Hall balance of $489,133.
[8:06] Within the Capital Projects Fund for fiscal year 27,
[8:11] we have paving projects included of 800 000,
[8:14] of that amount approximately 290,000 is estimated to be local
[8:19] option gas tax funded.
[8:20] We have dirt road reduction, sidewalks, central,
[8:25] Hawks Park rotary Park and Boat ramp
[8:28] are some of the major capital projects.
[8:31] The boat ramp is anticipated to be funded
[8:33] through grant and impact fees.
[8:35] So total capital projects included in the proposed budget,
[8:40] $11,508,330.
[8:43] We have 834,400 and Parks and Rec impact in current fiscal
[8:49] year that has been earmarked for that boat ramp project to carry
[8:52] forward into next year.
[8:59] No major changes for the Special revenue funds
[9:02] since last workshop.
[9:03] A multimodal impact fees estimated available 1.5 million.
[9:08] Anticipated uses include Jones Fish Camp Road and Silver Palm
[9:13] Sidewalk.
[9:14] Police impact fees estimated 410 available.
[9:18] We have training station and boat ramp
[9:21] identified as potential uses.
[9:23] Fire impact fees, we are estimating setting aside 350 000
[9:30] additional in upcoming fiscal year for the fire truck.
[9:33] And then that would leave a remaining 296 available
[9:37] as we review and get closer to receiving the truck we'll
[9:40] review the available balance and how much
[9:42] we would need remaining.
[9:45] Recreation impact fees estimated 32,000 available.
[9:49] Again we set aside a portion for the boat ramp.
[9:53] Projects are being reviewed assumes that additional 132,829
[9:58] impact fee collections prior to the start of that project.
[10:03] General governmental buildings impact fee of 184,000.
[10:06] The CRA or Community Redevelopment Agency has 886,000
[10:11] and estimated revenues.
[10:13] And that's going to be used towards land acquisition
[10:16] and streetscape projects.
[10:18] Tree Mitigation Fund currently has about 7599,
[10:24] if you all recall during one of the budget amendments this year,
[10:28] the allocated a portion of the tree mitigation funds
[10:30] to various projects throughout the city.
[10:36] The -- .
[10:39] >> Just one question so the Tree Mitigation fund is that like
[10:44] if a developer comes in and wants to clear down a facility
[10:47] like we've seen recently it would go into that fund?
[10:50] So we only have 759 9000 -- $7,599 in that fund so we can
[10:59] potentially have it 100 000 so.
[11:01] >> That is correct keeping in mind that we did have
[11:05] approximately 180 thousand that we allocated in current fiscal
[11:09] year budget.
[11:10] That is in the process.
[11:14] The scholarship fund has estimated available 5000.
[11:19] We do receive quite a bit during the Princess Ball each year,
[11:24] and that goes into that fund for scholarships being given out
[11:27] for Edgewater students.
[11:29] A special law enforcement trust fund estimated available 47000.
[11:33] Opioid Settlement Trust Fund, estimated available 800.
[11:39] The grant fund currently has a million earmarked for city metro
[11:44] requested for appropriations for stormwater projects and then we
[11:48] have 1,079,000 that was set aside for the canal armoring
[11:52] Cdbg 386 match.
[11:54] Arpa Economic Impact Fund estimated available 784,730.
[12:04] Citywide debt is $29,650,386.
[12:16] For the enterprise funds, we have fee resolution that was
[12:22] approved at the August 3rd meeting.
[12:25] That was incorporated into fiscal year 27 proposed budget.
[12:28] The rates were held flat in prior year,
[12:32] so water and sewer fund proposed 4.5% increase
[12:35] for water and sewer.
[12:37] That includes 42.4 million in debt for the wastewater
[12:41] treatment plant and fiscal year 31, and 10 million
[12:45] in waterline and other projects in fiscal year 29.
[12:48] Charges for service increased an estimated 1.2 million,
[12:52] a portion of which relates to a new counts.
[12:55] For the solid waste one proposed a 3% increase for refuse charges
[13:01] currently 29.71 residential to 30.60.
[13:05] Estimated increase in charges for service is $333,965.
[13:09] This also includes the new account additions.
[13:16] The recycling side of solid waste fund
[13:18] is anticipated to remain at $8 monthly,
[13:21] keeping in mind that verbiage was added to the November ballot
[13:25] and that is to get feedback on if customers would like
[13:29] to retain recycling services.
[13:31] The stormwater fund proposed a $5 and three cent increase
[13:36] from its current $14.58 residential.
[13:40] The estimated increase would generate 1 million
[13:44] in charges for service.
[13:51] For the water and sewer fund operating expenses,
[13:55] the preliminary estimates were included from the compensation
[13:59] classification.
[14:00] The estimated impact to the water and sewer fund
[14:03] is 7.5%, dependent on approval of the budget.
[14:07] Majority of the operating expenses
[14:09] had inflationary increases plus or -5%.
[14:13] There were no new staff added for this fund.
[14:16] And the total outstanding debt is currently $18,308,269.
[14:20] Water and sewer capital outlay that
[14:27] was included in the fiscal year 27 proposed budget,
[14:30] includes a tilt deck equipment trailer.
[14:33] Light duty pickup, 4x4 extended cab truck,
[14:38] Taylor caddy terminal tractor, three quarter ton truck utility
[14:41] body with crane and a trailer caddy terminal tractor.
[14:46] Total capital equipment $455,749.
[14:50] For the water and Sewer Projects fund or replacement and renewal
[14:58] projects fund.
[14:59] There were quite a few projects I
[15:01] won't go through the entire list with you.
[15:03] But some of the major ones include 6.6 million
[15:06] in wastewater treatment plant design which is grant funded.
[15:11] Sewer lining Cdbg Florida Commerce of 1.5 million
[15:15] which is also a good portion grant funded.
[15:19] Total projects 12,765,000.
[15:25] For the Solid waste fund, expenses preliminary
[15:32] estimates from the compensation classification
[15:35] incorporated into the budget.
[15:36] The estimated impact to the Solid Waste Fund
[15:39] is 8.2%, dependent on the approval of the budget.
[15:43] Majority of the operating expenses
[15:45] had inflationary increases plus or -5%.
[15:49] No staff was added to the next year budget.
[15:52] Capital outlay request to refuse trucks at 611,600.
[15:57] Total outstanding debt 4.5 million.
[16:05] Stormwater updates.
[16:06] So he was one of the major updates since the last two
[16:11] budget workshops.
[16:13] For the stormwater we had the rate consultant present rates
[16:17] and impact fees at the June workshop.
[16:19] After extensive further review by staff,
[16:23] it was determined that the five year Capital Improvement
[16:26] plan should be divided among several projects
[16:29] into design, engineering and construction phases.
[16:32] And prioritize them according to an achievable timeline.
[16:35] So the five year CIP was reduced from 103 million to 57 million.
[16:43] The following table gives you the high level revisions
[16:47] of the CIP.
[16:52] So as you see from the last version,
[16:55] we have allocated to design engineering and construction
[16:59] all of these projects highlighted in the Stormwater
[17:03] Master plan, and we have stretched out
[17:06] the timeline on some of these projects
[17:08] to make them more realistic and achievable.
[17:14] So for those stormwater updates we reached out to the consultant
[17:20] to have him refigure the numbers.
[17:23] The previously proposed rates compared to the revised rates,
[17:28] for fiscal year 27 we're holding that $5 and three cent
[17:31] increase for stormwater, but you'll
[17:34] notice that the four outer years, approximately five half
[17:38] of the original right path.
[17:39] And then for the impact fees update,
[17:42] the previously proposed 1450 is now revised to 870 000.
[17:52] So operating expenses, excuse me.
[17:56] Preliminary estimates on the compensation classification.
[17:59] The estimated impact for the stormwater fund is 5.9%.
[18:03] Again dependent upon approval of the budget.
[18:06] Includes capital outlay and projects,
[18:09] timing other projects vary year to year
[18:11] so you'll see fluctuations for this project fund.
[18:15] For stormwater staff requested constant from prior year,
[18:21] total outstanding debt 3.4 million,
[18:24] capital outlay walking excavator,
[18:27] dump body truck and tilt tech trailer for a total of 771,820.
[18:38] Stormwater projects.
[18:41] The capital projects include for fiscal year 27, pump station
[18:46] design from mango and Queen, 27 to 9 Canal engineering.
[18:51] 18 Street Canal improvement design,
[18:54] refuse pond pump mango 12th design,
[18:57] stormwater infrastructure upgrades,
[18:59] for total projects of 6.8 million.
[19:02] You will note that the approved CIP
[19:05] is dependent not only on the five year rate path,
[19:09] but as well as the stormwater impact fees.
[19:12] So they go hand in hand when funding the CIP program
[19:15] before you.
[19:18] For the internal service funds.
[19:21] So these are the funds that are working
[19:25] for all of our general fund and enterprise funds.
[19:28] So we have information technology, fleet,
[19:32] property liability fund which is your insurance for all
[19:35] of your properties and vehicles, health Insurance fund
[19:37] which tracks all of the health insurance costs,
[19:40] and workers compensation.
[19:47] In summary, proposed budget is based on 6.33
[19:52] holding the operating millage flat.
[19:54] Taxable value $2,360,128,081.
[19:57] The voted debt service for the Gopher Parks debt service is
[20:06] 0.050.
[20:07] City wide balanced budget $128,179,325.
[20:12] Again it's a minor fluctuations expected
[20:18] between now and September.
[20:19] But we'll provide that updated information.
[20:22] General Fund budget 42 million, 1.9 in Special revenue funds,
[20:28] the Debt service 396 thousand, capital projects 10,673,930,
[20:34] Enterprise funds 64 million, and 8.6 million in internal service
[20:43] funds.
[20:44] So high level summary of the entire operating budget,
[20:49] budget workshops for the public hearing will be September 14th
[20:51] and September 28th at 6 p.m..
[20:56] And hopefully I didn't go too quickly,
[21:00] get to have a cream at lunch.
[21:03] Can I answer any questions or defer to team for any questions?
[21:16] >> Are there any questions?
[21:23] >> For page 27 the revised five years (Indistinct) just taking
[21:29] it in -- page 27 the revised five year CIP we're just taking
[21:34] projects and spreading them out over a longer period of time?
[21:36] >> Yes Ma'am.
[21:39] >> All that design engineering is going to be in this next
[21:43] fiscal year?
[21:44] Construction for example mango Pond is not till 2029 2030.
[21:48] Been a few years ahead of us.
[21:51] >> Yes Ma'am.
[21:54] >> What projects do we do out of the tree fund last year?
[21:58] >> Last year in 25, Ryan or Jeff do you --
[22:04] I know there was -- so Merchants Park was either last year
[22:07] or the year before I know we spent approximately 3000
[22:10] in matching funds to some grants.
[22:14] Out of the tree fund yes sir.
[22:17] And then for current fiscal year in 26 that 180,000 that I
[22:21] mentioned earlier, let's say.
[22:24] Menard may landscaping but for future city hall, public works
[22:30] utility staging lot landscaping, public works site landscaping
[22:33] park town landscaping so quite a few uses for Citywide projects.
[22:38] >> 100,000 that we could have received.
[22:41] Gotcha thank you.
[22:42] Just wanted to make sure.
[22:46] >> Another question I'm sorry -- if we did not improve
[22:51] the utility increase can you tell me example what could have
[22:55] happened as far as the CIP in the next five years?
[22:59] >> Sure so combination of variables.
[23:02] If we did not increase the rates at all this year we would have
[23:06] had to go back for stormwater we would
[23:08] have had to remove pretty much all of the projects.
[23:11] Within the CIP plan.
[23:12] Water and sewer, we would have had to review that
[23:15] completely again.
[23:17] CIP projects being a large portion of those funds.
[23:20] And then further, if you recall the rate consultant
[23:24] presented that even to fund current year wage
[23:27] increases for employees, and then
[23:30] operating operational lines, potentially level
[23:33] of service impact.
[23:35] So.
[23:35] Those are the types of things that by not increasing
[23:39] the rates, we would have to go back to the drawing board.
[23:42] >> Which would be detrimental to the city so I just wanted
[23:46] to kind of get an overview of what could have happened if it
[23:48] had not paid us so thank you.
[23:50] >> What it comes down to is that's one of our only sources
[23:54] of income which is kind of sad and we're playing a lot
[23:57] of projects in the past and we are where we are,
[24:01] well funded in the past but.
[24:03] >> We could have jeopardized grants.
[24:08] >> -- versus regular tax.
[24:10] >> We could have jeopardized receiving grants because just
[24:14] like any loan applicant, they want to see your income.
[24:17] If you don't make enough money, you're
[24:19] really going to get a higher interest rate
[24:21] or you're not going to get anything.
[24:24] We want to be in a stronger loan to value I guess it's called
[24:28] or --
[24:29] >> Absolutely so our reserve balances as well as our income
[24:33] streams are reviewed in any financing opportunities.
[24:36] Including grant opportunities.
[24:38] So it does have an impact on those opportunities as well.
[24:41] Yes sir.
[24:42] >> And my main question is because we are a government
[24:45] and one of the things is scariest in the United States is
[24:49] our debt.
[24:50] How successfully are we managing ours?
[24:54] I mean plan to get it down or is it always --
[24:58] over key question are we always going to have a decent amount
[25:01] of debt is our goal to like, we're never going to be debt
[25:04] free but I'm just curious (Indistinct)
[25:07] >> Filed for bankruptcy before.
[25:09] Good job of getting it down.
[25:11] >> Really?
[25:14] >> So as a municipality we have done a tremendous job over
[25:18] the years of refinancing debt, bringing on debt that is
[25:22] realistic manageable.
[25:23] And in good purpose right?
[25:26] So typically speaking, you would look
[25:28] to, as a person right individual,
[25:30] would mortgage their home, they would finance a vehicle,
[25:34] but you typically don't want to finance
[25:36] your ongoing going to the grocery store,
[25:40] buying fuel so forth.
[25:41] We all use the credit cards to pay for that
[25:43] and turn around and pay that off right?
[25:46] But for fiscal sustainability, some of the major areas,
[25:49] it is appropriate.
[25:50] It is sustainable to take on debt.
[25:53] For realistic areas.
[25:54] But to finance for ongoing operations
[25:57] is not necessarily a good practice.
[25:59] So I think overall the city of Edgewater
[26:02] has done a tremendous job of finding that balance
[26:04] and making sure that we're not overextending ourselves.
[26:08] >> Because another way that we could lower our costs is to have
[26:13] less interest.
[26:15] Like getting a 0% credit card and paying off a high --
[26:19] I mean there's probably manage it in ways,
[26:22] that's why I'm just wondering how we go about --
[26:27] >> There's also the balance too if you know of the long term
[26:29] infrastructure.
[26:30] So again the mortgage and vehicle examples,
[26:32] for some of the projects that are going to be longer term,
[26:35] that actually helps you smooth out the rate impact.
[26:38] So as you're taking on debt for a big project that's
[26:44] going to last the next 20 to 30 years,
[26:47] then that debt payment is over the next 20 to 30 years.
[26:50] Again back to your other note of making sure
[26:53] that we're balancing the interest rates,
[26:55] the cost associated with financing and doing
[26:58] so that is in the best interest of the ratepayers
[27:02] in the taxpayers of the community.
[27:04] >> I'm just curious.
[27:07] I have no idea who we borrow money
[27:10] from other than the government.
[27:11] What kind of rate does the city normally get?
[27:14] Is it like ten or is it like 17 like a credit card or?
[27:18] >> It depends on the economy.
[27:22] It depends on so many variables.
[27:23] So our current fiscal picture if you will.
[27:29] It varies on how your financing right?
[27:32] So water and sewer projects can oftentimes
[27:34] be financed through SRF or the state revolving fund program.
[27:39] They have much lower interest rates.
[27:41] You're talking around the 1% 2%, sometimes
[27:44] you can even get grant forgiveness.
[27:47] So they give you a loan but then they turn around
[27:50] and say okay we're going to, it's
[27:52] a principal forgiveness loan program
[27:53] so they'll forgive the balance.
[27:55] So that is something that we're looking into for the wastewater
[27:57] treatment plant.
[27:58] We have approximately 19 million worth of grant forgiveness
[28:02] type of loan.
[28:04] Now other areas, if you're going out for,
[28:07] we always go out for solicitation for debt right?
[28:11] So we work with financial advisor.
[28:13] And we will broadcast that solicitation
[28:15] to get the best rate possible for the city.
[28:18] Now over the years, that rate has fluctuated for governments.
[28:22] Typically a much better interest rate for governments right?
[28:26] So we can get tax benefits for our borrowing.
[28:31] We also have to go through loops of tax rebate
[28:34] but I won't bore you because that's accounting geek stuff.
[28:37] But we do get much lower rates, currently anywhere
[28:41] between 3 to 5% on some of these major borrowings.
[28:44] But again, it varies about the time
[28:47] that you're going out for financing,
[28:48] it matters how much do you have in reserves?
[28:52] How do your revenues?
[28:53] How does your balance sheet look?
[28:55] They look at all of those variables.
[28:56] >> So the city has like a credit rating and from your answers I
[29:01] can tell your rate shopping constantly so thank you.
[29:04] >> Yes sir.
[29:08] >> And we are adjourned.