>> To our new setting yes.
When I think the police
department for allowing us to
conduct our meetings are
temporarily. And of course,
want to thank city staff for
building this beautiful dais,
we'll remain probably a
permanent fixture going
forward. You after we builder
new City Hall. Pretty nice
right? Anyway. Let us begin
the meeting. We're going to
start with our our joint
workshop with the Budget
Advisory Board MR. Clerk,
would you please call the Roll
the commission Commissioner
Herbst as commissioner,
Glassman here, Commissioner
Beasley here, vice mayor sort
hear front office and the
chair of the Budget Advisory
Board want to call the role of
your committee.
We have a
quorum break. City manager.
>> Please proceed.
>> Great. Thank you, mayor. So
we're going to start with the
presentation from staff with
Laura Reis. And just before we
get started, I just want to
acknowledge the work of the
budget advisory board and
Chair Brown. You'll see in the
work program in the backup.
This team, this committee in
particular has put Done a
tremendous amount of work this
year to get us to where we are
now. And we are just grateful
for their support.
>> Thank Good afternoon, Mayor
Vice mayor commissioners Laura
Rees. Hope you enjoyed your
summer. We're very excited to
be back with you as you now we
have a regular cadence. Of the
Budget Advisory board meeting
with the City Commission
happens 3 times a year. This
is that 3rd of 3 meetings that
they have at this point. The
city the city commission is
set the maximum millage rates
and the budget advisory board
spent the summer Wayne and on
the budget and making
recommendations at their last
meeting. So before we turn it
over to the charity, get going
and we have the tentative
budget presentation so before
we turn it over to the chair
to share their presentation
and their recommendations
staff would like go over some.
Summary information of changes
that happened between when we
met with you last time in JUNE
at the Joint Workshop and this
meeting because we got new
taxable values and a few
things changed over the
summer. So we want to make
sure that we're all on the
same page. The Budget Advisory
board has already received
this information at their JULY
meeting. So I'll quickly go
through it just to make sure
we're all aligned where we're
starting. So today I'll be
going over taxable value
growth tax bill comparison of
the operating budget by fun.
And we'll talk about the
general fund a little bit
more. That's really where we
focus our time and in JUNE
when we had our joint meeting
with you, we'll talk about
where the money comes from
where it goes. Some key
changes since the proposed
budget. And the General Fund
2027 tentative Ft. Snapshot
will share with you the
projected budget. And the
capital improvement plan. Some
strategic budgeting, balancing
strategies that we implemented
since we met in JUNE and which
were part of the proposed
budget that was shared with
the commission at your JULY
meeting and then some key
takeaways for the budget. So
the first item is the change
that we got between JUNE and
JULY. So our proposed budget
was based upon that taxable
values as of JUNE first, which
we got from the property
appraiser. The city is
required to use the JULY first
values that we've received
from the property appraiser as
part of the adopted budget
that we bring forward at the 2
public hearings in SEPTEMBER.
So the good news is that when
at so in JUNE we shared 67.3
billion dollars and that has
now and increased which will
result in 700 and 56 $1000 in
additional revenue to the
general fund. One thing that's
kind of cool to know, isn't
that new construction increase
this year is the highest it's
been in. But over 5 years. So
that's a good indicator of the
economy in Fort Lauderdale.
When you say this year 2025.
So the tax bill for 2026 is
what we use. So it's as of
JUNE as of JANUARY. 1st. So it
would reflect any growth that
happened the year before
JANUARY. 1st. And so it grew
by 1.0, 7, 5, billion dollars.
Okay. Thank you. Welcome. And
so we shared with the u we
shared with you this tax bill
comparison for illustrative
purposes in JUNE sharing. And
again, that really hasn't
changed but just as a
reminder, tax bills will are a
term notices will be going out
to residents within the next
week. And so those start
seeing their trim notices. A
part of that is the city's tax
rate in the city's
assessments. So for a $640,000
taxable value. The amount that
comes to the city on the tax
bill In 2026. Was $3,493. The
increases that are being
proposed on the tax bill this
year, millage rate stays the
same. But because there's
that. Cpi cap or the cpi
growth said it value that will
go up by 2.7% this year. $69
voter approved. That goes down
because the taxable value went
up and that's the calculation
of. But what it takes to make
that payment. So that'll go
down my for approximately $5.
Storm water assessment is
scheduled to increased by $75
or 20% to support the new debt
that will be issuing and buyer
assessment that full cost of
service true-up was $41 or
10.2% increase. So the total
increase for the city's
portion of the bell will be
$180 or 5.2% So the total
operating budget for the city,
the tentative operating budget
is 1.3 billion dollars. The
general fund is the largest
portion of that bill are of
that budget at 561. Million
dollars or 43%. And the second
largest is water, sewer and
central regional wastewater
system at 310 million dollars.
In the general fund.
Approximately 50% of our
revenue comes from property
taxes or 47.6% And that the
rest come from fire assessment
fees, utility taxes and other
revenues to support the
general fund. Share every year
that this is a pretty good
place to be where we have a
diversified revenue sources so
we think this will position us
well, even if property tax
reform occurs, I'm like some
municipalities that Even more
reliant on property taxes. And
police and fire drive the
largest portion of the general
fund budget over 60%. Followed
by parks and recreation,
Community services and other.
Functions that are funded
through the general Fund.
There are some key changes
that we wanted to highlight
for. You sense. The proposed
budget went to the city
Commission on at the beginning
of JULY. He revenue changes
are the increase in ad valorem
that we spoke about 756,000 in
additional revenues. We are
proposing to some costs and
the city attorney's office,
there are 2 positions that are
being recommended to be funded
in the city attorney's office
through an offset were
reduction and the risk
management charges for
external counsel. So that will
come in as a revenue to the
general fund for a service
charge and will be used to
support those and then another
item is will manners has
requested additional position
to be dedicated to the fire
rescue contract with them. So
that's $194,000 to support one
new ft. And so that's a class
Nate. Both of those are cost
neutral proposals to the
general fund. Additional
expenditures are increased
transfer to the Capital
Improvement $450,000. We
talked about the city attorney
and paralegal position that
will help to offset some
external expenses related to
auto liability in general
liability cases. The fire
safety captain position for
manners? Additional
contractual services and
operating expenses and parks
and recreation to offset some
positions that were reduced in
that area. And increase in tax
collector payment related to
the true-up in the fire
assessment and increase in
transfer that this based upon
those JULY first values. So
those the changes that will
you'll see when you vote on
the budget in SEPTEMBER, if
anything ounces added will add
that to change list that we
bring forward. East nap shot
remains the same as what we
shared in JULY with the
exception of the 3 positions
we just shared. And so then
that increase in the general
fund is and that 2 new
positions. And again, 3 of
those are fully supported
reductions and other expenses
or revenue from what manners?
As part of the city auditors
review of the budget. I
believe he'll speak more about
our fund balance. We've spent
some time with them over the
summer. So I'll leave that to
him by our estimate. Is that
9.4 million dollars about our
25% target is available and
the General Fund Fund balance.
And 4 cip. This also really
remains largely unchanged
since or JULY. Meeting. 8.1
million dollars and seawalls
we have funding for sidewalks
streets. 5 million dollars is
kind of a key number for the
bond parts bond. The gaps. So
if there's shortages in the
park's pond program, we can
turn to those funds to help to
fill the gaps funding repair
maintenance for city
facilities remains in the
budget and traffic mobility
and bike lane improvements. So
when we shared this general
fund forecast with you in
JUNE. We share that there was
8.9 million dollar projected
deficit and the general fund
due to some new expenses that
we're coming online, including
the new City hall, including
some new fire arson fire
grants that we're going to be
expiring. But we spent some
time in the month of JUNE.
Developing strategies to fill
those gaps. And those were
incorporated in the proposed
budget ahead of the decision
related to city Hall. And so
here are some key things that
were implemented. Revenue
enhancements for a fire
ambulance, transport fees,
interest earnings. We reduced
6 vacant positions in the
general fund and payroll
attrition was budgeted in
areas with a history of
vacancies. All of those were
incorporated in the
preliminary budget. In the
proposed budget. We added some
additional strategies, a shift
to internal pension bomb
payment. 2.1 million dollars,
2 million dollars for
interests in General Capital
projects. Fund. We eliminated
the subsidy for health. Health
insurance, administrative
costs, reduce fleet
replacement charge. So we have
to extend the life of those
vehicles or rely upon interest
in those funds were reducing
the fire rescue department
overtime budget. As we briefly
mentioned and a reduction for
grant writing services. So the
total balancing strategies
implemented. We're 10.9
million dollars in that 2027
budget. And that was really to
prepare us for 2028. So the
new model shows that we're
balanced essentially for 2028.
We started a neutral position
heading into that year as
well. And so our key takeaways
for the 2027 tentative budget
is it addresses the city
commission's priorities. We
spent a lot of time
identifying city manager's
message. The key ways where
each of your priorities are
funded. It's structurally
balanced accelerates the
completion of he capital
projects. It maintains a
healthy balance and prepares
the city for the future. Any
questions? Okay. Technically a
presentation that completes my
presentation. Okay. Is anyone
from the Bush advisory board
want to add to this
presentation or comment at
this point?
>> They have wait till. You
have you have your
presentation, ok? Very good.
Anyone from the commission
have any questions of war? At
this point? Thank Az job. I
see you. You did your made a
very serious attempt to reduce
our expenditures by almost
11 million dollars. So that's
that's great. And I know a lot
of work went behind all Want
to thank you and the entire
staff. The team that works for
the city and in making this
happen. So thank you so much.
>> Thank you. Mayor and
commission and thing said the
manager, assistant city
manager and the whole team. We
appreciate it. Great. This is
city manager.
>> If there's no further
questions for our staff will
turn that over to a chair.
Brown for the Budget Advisory
Board.
>> Welcome Instrumental on
building the diocese and it
looks fantastic. Can thank
you. So ones will get to the
slide deck First of all, I'd
like to opening with the
Budget advisory board members
this past year. They've spent
a tremendous amount of time
working with key identified
staff from omb on special
projects, too, to look at, you
know, like affordability
operations in each one of us
took a section on like revenue
enhancement area son,
everything. So we presented
that at our last workshop. So
today we're going to focus on
the future and kind of set the
stage to help you in JANUARY.
When you have your next works
for the Priority Workshop. As
a commission. And also I'd be
remorse of the vice chair. Let
the commission everyone know.
It's her birthday today. Happy
listen. Happy birthday.
>> What a way to spend
>> so during our summer
meetings, we focus a lot
working with staff on the the
physical year Fy 27 budget,
which was just proposed budget
I don't budget presented to
you earlier and then we took a
look at the city hall. Talked
about property tax reform. If
that were to pass, certainly
met with strategic
communications. They came and
did their presentation on the
public outreach of that.
Referendum and then also the
balancing act, which is online
and trying to engage the
general public. We come here
before you as a board to
endorse the Fy 2027 budget as
presented by staff by
unanimous vote from our last
meeting. Present is real
estate gets a responsible
budget that meets all the
city's current Sneads and it's
also balanced as required to
for 2027 with priorities for
public safety and supporting
the initial costs that general
fund costs for the new city
hall. I believe it's
11 million, 8 next year in
this budget. I'm not mistaken.
And then it includes
reductions that was addressed
to concerns for 2028 as staff
presented. As I mentioned,
we're looking as a citizens
advisory board to help you and
the commission to meet the
goals and your priorities and
what we feel. The residents
and taxpayers. Are most
concerned about. And we've
identified 5 key areas that we
feel we're all have to roll up
her sleeves as we move forward
for 2028. That's
affordability. The millage
rate in the fees. Do we keep
continue to keep them the
same? Same? Or will there have
to be increases property? Tax
reform comes in development,
slows down. We're talk about
development. We also are
concerned about keeping the
business a business friendly
environment. Any time you
raise business taxes or fees
and permits. It's a double
edged sword. What what are
those developers? One of those
business landlords to they
raise the price back on their
tenants its sort in essence is
an increase in the rents and
that has some effect. Same
with affordability. When you
have more cost involved, then
the landlord will always raise
the prices on their tenants
and the big else in the room.
This property tax reform. We
won't know till like we said
until NOVEMBER. How that's
going to play out. But we do
have concerns. So here's what
we do know. Affordability,
approximately somewhere It
says 49, there are some 46
49%. The average income
household income are below the
thresholds of basic cost of
living poverty standard here
in Broward County. The housing
costs and Fort Lauderdale, the
medium, a cause for a home now
to this was in 2025. Is
530,000. And the fair market
rent for a bedroom 2025. Is
$1900. The impacts of those
have is is is increasingly
challenging for young young
people, Move in here.
Specially first-time home
buyers and make a living in
Fort Lauderdale, achievable
and affordable. Well, I know
we have housing affordability
board that works on citian
certain issues. We have to
keep in mind any impacts that
we recommend to this
commission will have an effect
on affordability. Some
businesses are having trouble
finding the availability of
work workers and we at and
we'd like to keep our
workforce here in our own city
because are spending their tax
dollars. In Fort Lauderdale's
had the opportunity strengthen
its appeal to promote Fort
Lauderdale and it's a place to
live in a vibrant community.
As we now the current millage
rates been maintained. Now,
this budgets approved for 20
years. And and the other
cities have seen a substantial
increases communities around
cities around Fort Lauderdale
the military have originally
trade has increased 36% over
that time period. And we have
those seeing Costa fees as
section the fire assessments
feet of storm water, utility
rates. And the impact. All
this has is. You know it. It
affects a holistic preparation
of future budgets and
proactive addresses,
affordability challenges we
must take into concern. New
construction as we just
discussed we had a good year
with new growth coming online.
We had believe this, Elaine.
They came on the tax rolls
this year. That was 2
high-rise condo 30 story
buildings down on the beach.
And I think Flagler Village
had a couple projects. And
there's a couple more still.
Well for aging. That village
will. Yeah a is is going to be
an intense development project
that's going to has
significantly to the tax rules
tournament when when the year
the year which to finally gets
his co.
>> Corrected that. And that's
kind of leads me what we're
concerned about because
currently worse and a slow
down the development market
due to high construction costs
in the interest rates. Just
give you an example. I'm sure
you're aware that planning and
zoning typically on a good
month. We'll have. 3 to 5.
Zoning development projects
come before them month of
JUNE. They had one month of
JULY. They had 2 on their
agenda. Month. AUGUST 0. So
what's that tell you? We're
seeing a slowdown, but
everything is sent to go. We
understand that in the
construction where we have to
take that in into
consideration as we do future
planning for budgets. So but
we also have to be cognizant
when we have that downturn and
we don't see those 7 and a
half percent increases in
assessed value. If if it were
to drop below 5% in any given
one year. Historically,
looking at a 5% increase will
be eaten up just in salaries
and benefits of our workforce.
Fort Lauderdale. That, you
know, that's what giving
future races and pay the
health insurance costs and
everything else. So that
that's pretty staggering
number 5%. Automatically up in
personnel costs benefits. As I
mentioned earlier, keeping a
business friendly environment.
We get increase the property
or business tax by 5%. And
that made it. That's within
the Florida statute and that
the every year can go up 5. As
as I mentioned, has a double
edged sword there. When you do
that and we have to take that.
So as we look at future
budgets, we can't just say,
ok, we go out here and raise.
Start raising the permit fees
and business taxes and things.
Without fully taking in
consideration. The impacts of
those will have. And to our
next big one property tax. We
all know what's being proposed
taken Homestead up from 50,000
next year, too 150,000 with
2028. Going to to 50 or to
pass 5 year residents,
five-year residency. If you
move here, you can't will be
able to home set for 5 years
after the and of the year. And
then that non homestead
properties will no longer be
taxed. Maximum 10% drops to 5.
So we know it. 2028, if this
were to pass 17 Million. We
know. 2029 and a production of
27.3 million. So is off off to
offset all this. We have to
come up with some strategic
productions and or increase
the millage rate. It's pretty
simple. We're not advocating
an increase in mileage rates
to do it, but we're going to
make tough decisions as a
community and as a commission
and has a visor report.
Doesn't mean we start cutting.
Services or does it mean we
start the funding non for
profits. Next year. You have
to take a look at that. Cra.
It was a two-year proposal,
come back and look at it being
funded at 50%. Maybe a choice
has to be made. You don't fund
it for the next 2 years. A 50
person that 50%. Those are
some of the things not that
we're saying this has to be
done, but we're going to have
to really, really take a hard
look at the hard dive. To
balance a budget next year.
Property tax reform passes.
And that's why we're setting.
As I mentioned stage as we
move to the were your workshop
in JANUARY on what the
priorities are going to be.
And that's going a lot of the
party's going to be driven.
What happens? Property tax
reform keeping in mind public
safety is always priority
number And that concludes my
presentation. Okay. Great. Any
questions of MR. Brown, do
have a question. Please go
ahead us on the on moving
forward and looking at those
areas we MAY need to reduce.
He says services. What
services are you?
>> Suggesting that we reduced?
>> Maybe the programs at the
parks offer might have to be
reduced. Services that we do
for for the special events for
district certain The parades,
you know, those who carry a
big impact on services city
services and the cost of
those. So I'm we're not
saying. We're cutting anything
at this point, but we think.
Collaboratively we have to
also down and figure out what
is the best model that works
best. And we do know police
overtime. You'll hear about
following this presentation is
high fires reduce theirs. But
one of the reasons is. Police
overtime. We're seeing more
protest. So requires public
safety support than we've ever
seen in the past in our
community. So that drives up
overtime costs. You can't cut
those types of services
because those are still
required. For for certain
types of security measures. So
I think at this point I know
the the previous city manager
presented a list some
strategic folk thoughts her
and the staff at the time that
maybe if property pay tax
where the past we'd have to
take a look at. But I think
overall. I don't want I don't
want to protect to what's
going to happen. But just
hearing and seeing it really
people don't understand the
impact if really happens. And
hopefully, you know, we're
trying to educate strategic
communications and a great
job, but we just got to keep
pushing that message out. One
voters will decide. And I
think that's the message
voters are hearing great. Tax
bills will go down. That might
on the side. But services
still have to be. Provided if
they want that same level of
service.
>> And that was the reason I
was asking me, say service.
That's broad statement. So
that's why I asked what where
are you saying the services
that would be? Suggested maybe
or what we need to look at
specifically. All right. That
was the reason for my
question, right? And at this
point, we we really don't.
>> Have a looked at particular
yet. And hopefully once we
have clear guidance from your
workshop in JANUARY, what the
priorities will be. I think
we're going to clear guidance
NOVEMBER. We put that. But
then you're the priorities
will have to be built around
that budget and that resource,
right? You know, it will set
meetings and and try to
determine what the priorities
of the community are and and
then make decisions going
forward. So whether it be
services, whether it be
staffing.
>> Whatever it MAY be, you
know, commission would have to
make a decision about the
millage rate and any other
fees that we charge. You know,
these you know, have to be
answered some point. You're
right. We agree with you. But
you it's gonna have an impact.
You know, my my windstorm
insurance in swat up about
$3,000. So there goes my
savings.
>> OCTOBER, OCTOBER NOVEMBER,
the historically we are this
year, too. The board is not me
because we've met so much
throughout the year were one
of the boards that have
probably one of the most
meetings throughout the year.
And so we we give gifts. Staff
a chance not only to take a
take a rest from having too
work closely with the board.
But then they all sort of the
process of doing every year in
close out for the previous
physical for that physical
year were coming off of so.
But then possibly come back in
DECEMBER. If we see a need to
and then the course in JANUARY
and will fit, we'll hit the
ground running again, mayor,
as you said, will definitely
know by NOVEMBER. And I think
once we know that the number
will probably need DECEMBER.
>> Very good at any of
question. If I MAY. I just
also want to echo everyone
sentiments. Thank you so much
to you and your entire board
for the work that you do
enough throughout the whole
year. I mean, it really is
amazing to track what you guys
do, how it all starts the
process. And I really hope the
public understands the
commitment that you guys all
make and the work that you all
put into it. It's very night.
I you know, I I'm really happy
that it's chiming with the
tentative budget that was
proposed by Laura want to
reiterate. So you aboard is
firmly and support of the
tentative budget as proposed.
Yes, asleep. Okay. Excellent.
And I do look forward to the
work. We are going to have to
roll up our sleeves,
especially if this passes. But
I think we'll get there. I
what I really feel sorry for
all the small communities in
our state that so much rely on
ad valorem tax that that that
homestead attacks that they
collect, which really is their
entire budget. We are
fortunate that we are a
diverse economy. We are
diverse revenue sources for
taxes. It's going to be very
interesting to see if this
passes. What happens to those
smaller communities, towns and
counties in our state? I
really don't know how they
survive, actually, but well,
one of those cities might be
something like Parkland, which
has 75 to 80% of their tax
base center properties site it
become they become
unincorporated. Today emerged
with another town and Broward
County. I mean, what happened?
So, you know, we'll Luckily
for us, we're not in that
position, but I I do hope that
everyone understands the
ramifications for the entire
entire state and what can
happen. And it's interesting,
man that you mention the
increase in your wind storm.
We we seem to not think of
those The state doesn't think
of those things that it's
easier just to say. Let's cut
your property taxes. And in
the meantime, the other issues
that affect us so greatly like
property insurance. As you
mentioned, windstorm, those
all get no attention so that
this almost becomes like the
out for the state without.
Basically focusing on a lot of
issues that effect day today
as citizens of the state. So
it's an interesting concept.
We'll see how it plays out.
But again, I want say thank
thrilled that you 100% behind
the budget as proposed again.
Thank you for your You'll have
a few months off now. We'll
see you in DECEMBER. Thank
you. And just closing, I can't
emphasize enough. Per the
staff and omb. I mean there
and then not not to a to any
other department, but we have
energy contact directly
contact with that staff. They
are tremendous. I know even a
former board member mentioned
came from the private sector.
>> Was always so amazed at how
and be and how they were
always on top of things and
the kudos and I think they
deserve a round of applause.
>> And I ask to stand up
tomorrow.
>> Mayor had couple built
before you sit down just
couple questions. One, thank
you again for working n
especially in partnership with
on be how is that house and
process been going? Because
you all day deep into
department spending so forth
is the is how are
collaborating and working
together and working with
staff is icon. Well, is there
anything we can do from a
commission standpoint staff
point sampling to do better. I
think it's working well of
everything we've asked for. Up
members have been supplied.
Yeah, great. What I think. I
think as we move forward.
What's the health and in the
room, Essex rights on the
property tax. That's one when
things are really going to
get. Figuring it all out,
right? Yeah. And that's that's
one of the questions I get
from neighbors regularly is is
there other savings now that
we could be putting in place
and not waiting until
NOVEMBER? And so you all of
obviously diggin and so forth
will be your response to that.
Sure a couple of the savings
possibilities feeling. And,
you know, it's always been
commissioners, the
not-for-profits. Yeah, we've
always had concerns. There's
not been a really good vetting
system for those. Some of the
non for profits feel like it's
an entitlement program. You
know where you guys come up
with 11 million dollars of
Yeah. So that's a right? Yeah.
a good a good start.
>> Yeah, I'm either those
vacant positions. Those those
funds were always carried on
the books. So in essence, when
you eliminate 6 vacant
positions off the books have
freeze up that money that all
ultimately would at the end of
every year go back into the
general fund to be used for
other things throughout the
year that explained properly
yet. Yeah. So so like like you
said, mayor, that was a big
savings right there. Yeah, not
re absorb basically, right?
Yeah. So those some of the
things and it's, you as I
mentioned, non for profits and
cra, you know, if the cra has
a lot of money in that
account. We can maybe hold off
another 2 years, especially
with development, not moving
right now. Maybe that might be
a time to take a pause. I
mean, that's that's a
strategic. Decision this
commission to make a discuss.
We have a meeting after this
it's issue that I would like
address also because I
understand was a 6 million
dollars a that we generate
approximately 6 billion a
year. And that's just city
funds, you know, doesn't
include the funds were used
take advantage of when we had
the full complement of of
taxing authorities that were
contributing to this. So
something we think about. Look
at the schedule of
opportunities that we have in
the cra's. What our
expectations are. What are
what the opportunities are and
what we can afford. And and
maybe that would be another
source of So you see, great,
but I think we all have to
agree that we have to keep in
mind set as we move forward is
everything should be on the
table, excluding the key
elements public safety,
providing good quality water,
sewer.
>> Storm water. Protect this
community for the
infrastructure needs at those
that are required in the
interest life safety and
sustainability. After that, we
should be able look at
everything on the table get.
Thank you. Thank you. Thank
you. Appreciate. Thank you Any
other yes, a lot of us. The
Brown we can or come Laura
JULY coming back up for
second.
>> Thank again. Thank you to
everyone and all the input to
reports in that time that has
been shared and added to
opportunity this afternoon.
But I want us to roll back a
little bit and I want us to
really for the record and for
the room. Let's dive a little
deeper around and really say
the sources of new 11 million
dollars has identified. We
could say what, but it's
exactly how much money is
coming from these Are they in
a sense convert on comber?
What what is this money?
Because I want to know, you
know exactly where it's coming
from. And then how else MAY
need to look at using it going
forward, thinking about
property tax referendum. Thank
you, commissioner. Just
reiterate some answering the
cracks questions. So in the
proposed budget, there are
10.9 million dollars in
strategic productions that are
incorporated. Are you asking
for me that talk about those?
Yes, Absolutely. The first
item on the list is revenue
enhancements. And so we've
been partnering throughout the
year with departments and with
the Budget Advisory Board
bringing forward then to the
commission's certain revenues
and fee increases. One of the
main ones that was
incorporated was fire
ambulance, transport fees that
were increased and that was
already implemented. And then
by rescues really spend some
time trying to enhance
collection efforts in that
area. So with the revenue
enhancements, which included
interest earnings and new
program that finance put
together to enhance interest,
earning program business tax
fee increases and fire
ambulance fees for like the 3
major ones. That was 3.2
million dollars in revenue
enhancements. The second item
that we pointed to in this was
incorporated in the
preliminary budget was a
reduction of 6 vacant
positions. So many of them had
been vacant for over a year
example, we pointed to was
parks and recreation had
recruiting for plumber
position. Some of those
technical positions. So we did
add some contractual services
later, but we did reduce
positions to the tune $767,000
for 6 positions and that
reduces the ongoing increase
in growth wages for those
positions in our modeling as
well. The next item is chair
Brown was talking about, which
was the attrition we
previously used a budget for
positions at the full amount,
even though we realized there
was vacant positions
throughout the year. So now we
factored in an attrition
factor for departments that
vacancies from year to year
that allowed us to budget for
$550,000 in General fund for
attrition. And so that reduces
our expenses, meaning we don't
have to actually cut
positions. But we're just
budgeting for less salaries.
So those are the ones that
were incorporated in
preliminary. And we talked to
about those in But since then,
we added some enhancements and
for proposed budget. The first
one, really what we're trying
to do, our strategy was to
impact services in the least.
Lisa Mount possible by looking
to the resources that we are
ready have one of the things
we identified in concert with
finance was that are we issued
pension obligation, bonds and
they have a limited life. I
believe 7 years, 7 around 7
years left and we had a fund
balance that was reserved for
payment purposes. We that one
12th every month for cash
flow, our cash flows really
strong in the city right now.
So we can do are transfers
from the various funds into
that fund on OCTOBER. 1st. And
that phrase at the fund
balance we had in that fund
and we can spend it down over
the last 7 years of the bond
and that freed up 2.1 million
dollars a year. So that was
financing strategy using our
own money to reduce tax pence
question just is that
considered operational?
>> Or is that falling under a
different My it's yeah. So
we're repaying debt. Okay.
>> And so we have a separate
fund set up for debt and let's
say the police department's
portion of that debt to
support the unfunded
liability. Let's say it was
million dollars. We would have
spread or 1.2 million dollars.
We would it. But $100,000
every month into the account
to make the payment. Now we're
going to pay it all at the
beginning of the year so that
we don't have to have. It's
kind of like a nascar for your
mortgage. We don't need ask
for any more. We can spend
that down take advantage of
funding that we have in place
by pain for at the beginning
of the year. And so that was
2.1 million dollars over the
next 7 years. We were able
realize the next item is
budgeting for interest in
capital projects. Account. So
previously, we didn't include
a budget for interest, but are
capital projects balances have
grown over the years and our
interest program is better. So
we're earning pretty
consistently 2 million dollars
a year. We're going to start
budgeting for that to offset
how much we need to actually
cash contribute to fund our
capital. So if we have
10 million dollars projects,
we only need to budget for
8 million because the fund
itself is generating 2 of the
million. So that was one of
our strategies that got us and
additional 2 million dollars.
The next item is related to
our health fund where
self-insured for health. But
previously, the city also paid
for the administrative costs
related to the health fund.
The health funds now and a
healthy enough position where
we don't need to do that. So
the general fund portion that
we won't have to pay is
$850,000 with no increases to
employees, premiums. So that
solution with 850,000 the next
item is $882,000. And it it's
similar to the other funding
that we talked about. It's
reducing the fleet replacement
charge. So. Our city has an
internal service fund that set
up to replace our full fleet.
So if I just general fund
position like somebody in code
if we purchase a vehicle for,
oh, let's say $20,000 we put
money aside every year so that
when that vehicle it needs to
be replaced, that we have
money saved to replace the
vehicle. What we were doing
before as we're funding and
95%. And that took into
account that we could sell the
vehicle for 5% of its costs to
offset it. We're seeing that
we're getting higher prices at
auction and we're learning
interest in that fund. So
we're able to reduce the
amount that we put aside for
placement by 5% to 90%. So
again, that was. Change in
mechanism would be $882,000 in
savings. 2 more to with
$350,000 reduction in Fire
Rescue over time by rescues
implemented some release
strategic approaches to how
they filled their vacancies.
They're experiencing ongoing
So the city manager
recommended $350,000 reduction
to their overtime, which is an
ongoing savings. And then the
last one was a pot of funds.
We used to budget for grant
writing services. The city
always wants to be prepared to
leverage grant funds. We had
$250,000 set aside for that.
What we've seen is really only
around 50,000 was So we're
reducing the amount. And if we
have a higher out, we'll have
to come to you to ask for
permission through a budget
amendment. Where I'm going
with him trying to ok, bottom
line. Where's this money?
Capital Operation Operating,
ok? All right. So we're
looking at operational, right?
This is where the majority of
this fund is coming from.
>> We're looking at the
NOVEMBER tax property tax
referendum. If that goes into
effect, how is this going
affect Operation?
>> So these strategic
redactions prepare us for
before property tax reform. If
in we see an additional
17 million dollar reduction in
revenues. We'll have to
implement additional
strategies. We'll try to look
to something similar to this
you know, we'll try to impact
services and the least way
possible. You know, it'll be
collaborative will have to
bring ideas with departments.
We work really closely with
all of our operating
departments to come up with
ideas. But I am. But we will
have to bring additional
ideas. This only gets us to
2028. And what are we gonna
use this 11 Million? What are
we as of this is already
incorporated into the budget
to into the proposed budget.
So it's, you identify, So the
primary thing we are able to
do was to enhance or capital
contributions because we don't
want to add to ongoing
operating expenses. So one of
the things I point to as
5 million dollars for park's
pond place holder and items
like that. So we didn't
operating programs based on
these reductions because we're
specifically trying to.
Balance for 2020. It further
questions. Yet this time the
formal the question passes
formalizing. These are
recurring savings. Just one
time saying, is a recurring
every year. Yes. Yeah.
>> Yeah. So the structural
balance budget means ongoing
revenues tied ongoing
expenses. We do so find a
>> large amount of capital
which is one time cost. We
have the opportunity to reduce
that as well.
>> And I ask that you can ask.
Well, yeah, because something
that's one of direction I want
to go in. Cause is this board
they've really done amazing
job with precinct in the
presentation. And I'm hoping
I've talked to some of you and
you all have had some great
input and Mares is an
opportunity now that we allow
some of the board to share as
well. I would I would love to
hear from all over if they
have, if they something, they
want Ionescu was all over. I
don't know if he has something
to say but would to more is up
it can I just yes, Thank you
so much to Laura. I just want
to talk about the grant
writing services because I
don't want to cut off our nose
to spite our face. If we are
facing some really heavy
decisions next year.
>> What what are the
opportunities? I want to make
sure that we're still going to
be able to fund, but we need
because I'm thinking that we
need to go after as many
grants as possible even maybe
accelerate what we've done in
the past. I don't know right
now what the temperature is
out there world of grants. But
it seems to me that that's
something we're going to have
to be really aggressive about
and making sure that we don't
leave any, you know, any grant
out there that we don't go
after. Obviously, especially
if we're going to be facing,
you know, some cuts. So we so
prepared to be as aggressive
as possible grant writing,
even though we are looking at,
you know, that reduction of
$200,000 yet. Commissioner, I
think this so.
>> You know, we are and you
need to be aggressive in a
grant program. There are a lot
of grants out there that we
don't need that grant reading
assistance force think sea
grants, for example, are
usually completed by staff or
we don't need that acts. That
external are basing this
reduction on our historic
transfer. We've actually
needed the assistance for in
these cases. And we think that
that will be adequate going
forward. Now, if we see new
grants come out if the federal
or state governments start to
create new programs and we
need to get more assistance is
Laura said we can come back
with a budget amendment to
seek those funds. If we see
uptick and what we need.
>> Okay, great. Thank you. I
again, I just want to make
sure that we're as aggressive
as possible, especially, you
know, facing the climate that
we going face. Thank Even even
with that aggressiveness.
>> Awareness what is actually
where possibly pay thing of
sitting here because really in
a personal moment.
>> remembering him a calling,
just just being a homeowner
being the person. Well, I am a
resident in the city and just
living from day to day what
I'm facing, what I base in the
remembering a time when I had
to look hard at my personal
budget making true decisions
and being real with myself I
need to do some things
differently. And being humbled
enough say this is not the
time, but what I'm I'm hoping
to do. So having a out of body
experience. If you want to say
really, really taking this and
because,
>> you know, you all gave us 6
weeks off so what we did with
that time, some of us MAY not
admit it, but lot of it. I'm
reading here, but with that
being said, I'm with the fact
that we definitely lead to be
aggressive. But what we're
doing. But at the same time
with that aggressiveness
possible with our what we're
moving forward and not acting
like NOVEMBER isn't something
that more than likely is not
going to be. What we consider
to be. I'm gonna get up so box
right now. Couple of things in
a since I haven't had a chance
yet. I want just a statement.
This is not a question but a
response MR. Brown's
statement.
>> So one of the things that I
haven't heard yet and this in
line with with your statement,
but it's also in line with
everything that I've read, all
the editorials that I've read,
all the speeches that I've
made by my elected colleagues
here locally and throughout
the state. Never once never
once have. I heard anybody
ever mention the word we're
going to be more efficient.
All I've heard is we're going
to raise fees. We're going to
raise taxes. We're going to
cut services. We're going to
cut police and fire. And never
once have I ever heard anybody
mention that we're going to
get more efficient. And I
think that's just a travesty.
And this is a global issue. Is
not just with us here. Again,
I spent a lot of time
consulting in the private
sector. I have a lot of
clients. I work with. And when
our revenue drops. The first
thing we do is we look at ways
that we can do things more
efficiently. Look at ways that
we can do more with less. I
don't start thinking about.
How I'm going to, you know,
look for ways to, you know,
keep my staff employed while
my revenue plummets. You know,
i'm thinking about how am I
going to do more with less? I
don't say I'm going to cut
services. I'm going to cut
product offerings. I look at
how many going to continue to
deliver on the expectations of
my customers. Well, I have
less revenue coming up because
that's how you grow your way
out of a problem. You know,
grow your way out by by
saying, you know, we're just
going to cut of our We're
going to put our clients at at
risk because, you know, the
residents, our clients. And so
we can't say we're going to
cut our services for clients
that that's not the answer.
And we can't simply say we're
going charge of our clients
work. That's not the answer.
The answer has got to be that
we're going to do better and
we're going to do more with
less. And never seems to be
the answer government
government has this unique
monopoly where we just say
great, we're going to charge
you more. And I just think
that that's a shame. And I
think we need to be thinking
more about again, how we drive
efficiency and how we can
implement again. The thing I'm
doing right now is I've
incorporated ai and everything
that I do. My work is 50% more
efficient than it was a year
ago. I've increased my
productivity, my output, the
quality of what I do because
I'm using chat music. Lord,
I'm using grok every single
day. Multiple times a day and
every single thing that I do
and again, I I encourage our
our city staff here to do that
and they're doing it. I know
they're doing training classes
on copilot. And I thank you
all for for embracing that.
Over time. Our workforce is
going to decline naturally
through attrition. And also
it's going to have to be
through strategic Lagos, where
we're just going to simply
find that we don't need as
many people to do the job that
we're doing today. And we only
have remember. That government
is not an employment agency.
We don't exist to employ
people. We exist to provide
services to our residents at
the lowest cost possible. And
we lose that. We lose that
concept all the time. I'd
never hear people say that.
That's our role. But I always
hear people say we can't lay
off staff. We can't cut staff.
We can't do this. We can't do
that. I never hear people say
here's what we can do. And so
I just want encourage us all
to have a different mindset.
When we're looking at this
scarcity. Drives improvement.
Nothing focuses the mind like
scarcity. I learned a long
time ago when I was working
for a company that was
experiencing financial
distress. And I will tell you
nothing focuses your attention
like bankruptcy. You know, I
would encourage us all to look
at this, not as as a crisis,
but as an opportunity for us
to get better and to be more
focused. It's a challenge to
us to get better. What we do
so and I would love to hear
from Olivia, so live If you
would care to share your
thoughts. Can you hear Thanks
for gt. Commissioner vice
mayor and commissioners.
>> When the CHAIRMAN Brown
described the unanimous vote
on this budget. I want to
mention that that was not able
to vote because I was stuck in
the Italian rose and I can.
But just a few messiah at That
said, if it out play out
reason I was there a before I
would have been able to do and
I was thinking, oh, so grab
these.
>> Mayor Trent Dallas, courage
to everybody to question to
uncover the true Self
knowledge. I still always
logic in politics and I think.
It reminded me of the fact and
I've tried to champion this
approach for the past 2 years.
We some degree of success
among my peers and talking to
some of you at the commission
is to try to bring ideas. The
dock on Crete and anchored in
the reality of numbers and
putting into perspective what
we have done for the past 3 or
4 years. And I put a lot now
that takes on the table shed
was my colleagues to see the
trends and and folks, Alice,
and I just we can't blame
staff for a new government for
doing that. But to a cool
comments bless you. There's a
there's tendency to cut the
pace from one unit to another.
And generally we see of the
general fund and lot more on
charges, fees, cetera, et
cetera. And we have incurred a
lot of burden on our
residents. And I was
advocating all this year some
desk assignment from everybody
to gather ideas in
anticipation of the loss of
revenue, how to stimulate our
revenues. And there is a lot
of ideas, fund staff as well.
We can do better in positive
and then spent of revenue. Now
the other side of the equation
is how do we save money? And I
say Inc, we need to get better
for you to make the
arbitration that you have to
make and anticipate that
before. Next year old before
2029, when we have 15 million
deficit, we start from pretty
and city whole because we had
at City Hall the very
difficult time. And we have to
it was this is the worst
timing to actually commit to
city Hall, which is funny, not
the same amount on the load on
the budget year as as the the
property impact. So.
Basically, I don't think the
budget this year I would have
voted to approve it because I
think we didn't anticipate
enough structural reform that
we could have done. And I sing
waiting for next year when we
will be in more difficult
position and the year after is
going to be a little late, I
think we had a poor tee tee to
green solutions year. I'm
hoping that as we start a new
cycle will do go deeper as a
group into a pushing stuff to
get better ideas and and more
announcements and we can't
create miracles. I think we
need to cut some budgets. I
don't think that's going to
off the table. Maybe some
service level changed in
General City whole seems to
be. The wrong decision of the
wrong time. We adding a lot of
weight to 270 million dollar
baseline. And we still very
expensive per square footage.
Commissioner Glassman, you
last commission meeting. You
mention sunrise, you mentioned
the as the cities around us
and I looked at the numbers
and the price per square foot
is still much less what are we
going pay. And we all know
that like building, if we
budget 100 million dollars, it
might land at 150. So what
about the 217, especially when
the design is not finalized,
this trainees is moving a
family, but I think this was
the the worst idea for the
worse time. My concern for the
budget next is that we should
put a foot of 18 other gimmick
or word, but really at the
center of our budget process
and we stuff. I think we
should help residents to get
some some sort of relief and
find ways to not increase. You
know, beyond if cars sent 4,
1, 1, 9, 3, manager, 8, which
provides more revenue as we
expand a tax value. We have
taxed out residents. We spire
assessment. We storm water.
Those increases are, you know,
Jack Antic. I made a
calculation on the budget
based upon a 640 j Home State
House. And it's staggering,
you know, per year. It's not
the numbers that I've seen a
previously. So I think we
missed opportunities this year
to go further in structural
reforms and there's positive
revenue announcement positive,
the use of ai. I'm tired of
hearing about ai and we're
training and we learning I'd
like to show me the money. How
much are we going to save? We
say aye rather than cutting
some jobs, but eventually I'm
Fred, that if this commission
doesn't do it, the next mayor
with the next commission is
going do that dirty job of
cutting a cutting jobs
employment. Remember, we are
he would well funded and we
have a lot of the employees.
They cost a lot of money every
year. The cost of those
employees is increasing.
Structurally out even
increasing the budget. So I
think we need to really go
deep. And I'm calling this out
of buddy a sentiment
commission to be sleepy Mena
had is that we need to be more
concrete as Bob and pushing
stuff to what's more tangible
solutions positive. And also
sometimes part solutions.
That's all I want say. Thank
you so much. I do have one
question now. When bad meets
will the departments? I think
because you've mentioned that
you think need to go So have
you had those discussions with
staff or have you look at the
departments?
>> Where do you see the bloat?
Where do you see the need to
cut a departments staff?
>> When you see the need to
cut positions, have you have
you been able to have those
discussions? Yeah, another
takes at the beginning of the
year that I shared my
colleagues and staff of the
U.S. Lee.
>> About the ratio you know,
per capita in terms of
employees, budget looking at
other cities in Florida across
the nation of do the same
thing we see deal cost square
footage. What we saved a
little money. We went down on
the proposal of city all, but
we're still the we still
better innovation across the
nation. I'm talking about
staff about I don't care about
I'm asking you about staff and
we are have you dug in.
>> To say this department is
over These these positions are
too many for this department.
This is where we need to cut.
>> This is where we have some
below. Have you done that?
Yes, I have done Commissioner,
you see that. And I so that
the city manager's office city
manages I've seen Those
developments have grown a lot
in the past 3 or 4 years
budget.
>> Even if you look at and I
don't want to put the public
safety on the spot, but the
office of the chief of police
has grown a lot. There might
be some good reason and I will
hear more about tomorrow
because we're meeting with
chief of police on not and to
keep eyes and the performance
of the the police department
compared to the the
well-funded budget that keeps
growing. But I have identified
and share my colleagues. I
think what we need to do
better as as as a board is to
take Zoe's and it takes and
hard numbers and renew some
you know, Inc in inside a
solution. And we need to get
better. That challenging staff
and heads of department how
you can do better. We less I
think it's not a private
sector versus public sector. I
think we should get on board.
By the way, Miami-Dade, Rowan
County, the school board all
have done some saying too,
better less money, cut jobs
and the even provide some
degree of relief for residents
in terms of And while the
school board has seen drastic
reductions of students to
service as opposed to our city
where we've seen increase in
population increase growth.
>> So I can't see how we can
compare ourselves to the
school board. Plus, the school
board is exempt from the
property tax reform. Lucky
them and also the school board
has another ballot initiative
on NOVEMBER, even raise more
money. In addition to the
millage rate money that they
raise. Is true? He was one of
the example I cited. We revert
to Miami-Dade and County. I
think there's an effort to
made.
>> In terms of heart measures,
you should also all of the
bill. Now you might have to
have surgery later. So I think
we need to and I say did 6
months ago in front you, we
need to go on a diet. We get
into a of your diet about can
help you find some solutions.
You have to direct staff to be
serious about it. Whatever the
city manager in charge
previous and current. I think
this is a hot job hawk feel
that we need to swell week now
because in the next 2 years
we're going to be in a
difficult situation and we
can't accept the c#
#
see, I
don't want to be an alarmist,
but I think we need to to do
better and I hope we can start
the next budget process my
colleagues to actually be more
of what we should be, which is
a sort of the consultant that
help beyond city stuff. Penn,
some will question and ideas.
We want to be more proactive.
We want to push staff. I see
that should be our role. And
also residents of the center
of out process affordability
should be not as nice where on
the slide, it we should
actually do something about
And if we can't, if we don't
raise the millage rate, don't
cheat. The residents wellness
to paid by seeing if iss month
on citation a fee all they
want fewer. It goes so so much
higher than 2 years of those
numbers as well to share with
you later. She okay. Great.
Thank you so much. Thank you.
I look forward to that work.
Actually. I why I'm really
curious to see those numbers
and that that that outlook
from you because I
>> you know, just mentioning
the city manager's office or
extract com, those those are
in significant numbers in
terms of our overall budget.
So we need to see definitely a
lot more than that. But I
definitely look forward to
that work. I think it's
important. But I think staff
would be very happy to, you
know, basically work along
those We're all going to be in
a position where we need to
dig deeper. I don't doubt
that. I just saying that our
role as Bob is not to
>> do come by all and it we
questions. And that's part of
our role sent to residents. We
are a budget advisory board.
So let's visor job. It
requires lot. So a lot of work
and research, but I think we
have bright minds on these
courts. It's not leadership
and and really pushing hot. So
I think we need to get you
that we'll meet. We lightly
was chosen not to take that. I
presented to colleagues to 6
months ago. Excellent. I look
forward to that. And by the
way, can buy has not
necessarily a bad thing. If
you actually agree with what
the staff is doing.
>> You can be come by. I any
us do. It's great. And I think
I worked well. We staff we
meet. We taught it doesn't
mean that we can't challenge
it is to have a different
perspective from the city
stuff and it's okay. We can.
We can disagree. We can have a
different reading of the
numbers. I think the problem
so often is that.
>> We go one year next year
and we don't take the time to
take perspectives to takes,
you know, some. Some longtime
perspective. And I think we
need to do that. And I think
Biden has an apology to those
that more. No. And I
understand, although the
projections that we see do go
out into the future so we can
continue the discussion. I
look forward to it. We're all
gonna have to roll up our
sleeves and work really hard.
>> When this next cycle comes
commissioner the projection
from Saint take steal a show
negatives in 2008 to 28 29,
right. So get it. Love it will
get to that. Let's just let's
just focus on what we're doing
today. And I and we appreciate
you your your perspective.
Yes, bill, last word. Going to
conclude this meeting? Very
quickly. The question about
department heads and
efficiency this past year.
They've been more efficient
than I've seen a long time.
Accountability and government.
>> What are the things
previous city manager did and
I make this suggesting not
coming from the bad but
because we've not taken a
position. But I think the
previous city manager didn't
exercise. What if it ever
would had if you had to cut
5%? I don't know if that was
shared with his diocese or was
it ever share with the board?
We can't direct staff or
something we can as but that
doesn't mean I think it who've
us all to take a look at that.
It has because this has become
a nation, too 5% off of
police, 5% off every
department. I yet. How was the
exercise can? All right. Let's
not go there. All But it would
be interesting, actually. What
think? That's a great idea.
I'd love to see that. I'd love
to actually see whatever was
put together. If if staff is
already done that exercise.
Please share that with me.
Thank you.
>> Yeah, we have not seen. All
right. That because that's
going to that could help the
foundation moving forward for
dental care. Thank you. Very
good. All right. City manager.
Yes, you have one more item on
agenda, which is the auditors
for you of the budget. But
>> for this again, want to
thank the bad chair, Brown and
the entire team for their work
this year. It was really great
to participate with you and
thank you for bringing us
recommendation today. MR.
Good
afternoon, mayor and
Commissioners.
>> City auditors all office
has performed review of fiscal
year 2026. 2027. Proposed
budget. The budget is compact
compiled by the city manager
pursuant to Section 4.0 9 of
the city charter. We had
several objectives for our
review of the fiscal year
proposed budget, the primary
focus of our review was to
ensure that the budget is
balance, revenue and
expenditures. Estimates are
reasonable. And truly correct.
And that the priority
established by the City
Commission's priorities. Also
funding allocations in the
coming year and that the
propose millage rate is in
compliance with Florida
statutes, the scope and
methodology of our review
consisted of the following.
The city auditor's office
perform various analytical
procedures, reviewed budget
support, worksheets invading
course to omb as needed.
Additionally, the co compared
the line item detail from the
proposed budget to the
projections, actual
expenditures through
SEPTEMBER. 2026. Furthermore,
the city and allies trends in
variances of the 3 prior
fiscal years. Budget versus
actual to gain a historical
perspective to identify
opportunities. 2. To look to
see that the accuracy and
revenue of 6 of the
expenditure estimates. The
documents reviewed also
included the executive
summary. We review of reports
that were provided through the
software system and it reports
that we were able to request
from omb. The. Again, finally
as part of our audit work, Co
all budget meetings and
relevant meetings as a related
to the development of the new
budget. This participation.
Further, give us further
insight as to the conditions
and of recommendations of that
were being prepared for this
year's budget. As I mentioned
prior years, the city budget
review. Feels pleasure.
Reviews perform each year. The
committee, the communication
between Management Bat Cao and
the city's commission, our
frequent throughout the year
and the budget office has
continuity of senior staff
within the department and in
prior years, no material
errors were noted on previous
reviews. The SEALs conclusion
is that the fiscal year 2026?
2027 proposed budget of the
city of Fort Lauderdale is
considered a balanced budget
as presented. In addition, the
priorities established in the
city's commission priorities
also show funding allocations
in the coming year and the
proposed millage rate is in
compliance with Florida
statutes. The areas of concern
Section noted in our memo
which is not not all
inclusive, but currently
represents areas. The ceo
deemed important enough to be
brought to the city's
commission. 2 brought to the
city's attention. These
concerns are related to
ongoing events and mate. MAY
impact the budget in the city
resources going forward. Areas
of concern over time trying to
take we are parties. No more
for the JULY. No more Great
American Beach When you see if
that's what evening.
>> I'm You know, depending you
know, think things that we MAY
in the future. My there's some
that were I don't believe
we're ever going
>> cut out. But there's some
want to or not. It's I'm open
any because it show bill on
this. You know, rethink this.
Yeah, I know. You know, thing
is we're hearing a lot of very
nice sounding things. But when
it comes down nitty-gritty,
what are we talking about?
Versus fission season
departments. That means.
>> That telling people to work
longer hours are doing better
at their job or were laying
off people. Those are the
realities. So, you know, and
we can dance around those
those those topics. But those
are the realities and people
that want to say it or they're
here. But that's ultimately
what it comes down to. If we
have x amount of dollars and
we're going to have x
17 million right? Will Dean's
we got to cut somewhere is
going to be staffing is going
to be events is going to be
contributions. It's going to
be all that all those And
that's why we have to reach
out to the community to decide
what are the choices and those
the priorities that that the
commission would have to
follow. I'm sorry. Go ahead.
>> All First concern that we
had was was over time. The ceo
continues to note a
significant amount of city
funds allocated to overtime
based on current operating
practices, actual overtime
expenses consistently exceed
the amounts included in the
proposed budget. Police
department over time remains a
primary contributor that to
the projected budget which are
the largest apartment. It
would make sense that they
would have the most but during
the the fiscal year 2026, the
projected. This is the final
year of the fiscal year. 2
it's projected that over time
for the for the police will be
30 million dollars and it is
underfunded by approximately
1.9 million dollars currently.
Current operating practices.
The total talking about all
the different departments, the
fiscal year 2027 overtime
costs, including Associated
6.5 in 5 because of projected
to be approximately 26 million
dollars. Accordingly. The
overtime amounts included in
the fiscal year 2020, proposed
budget do not appear to
reflect anticipate expenditure
that MAY require reliance on
salary savings from funded
vacancies or other available
appropriations to cover
overtime costs. Next item was
the capital Improvement. Plan
Garcia. Sorry, City. Are you
just pause or what mayor, if
its ok, I'd like take these
kind of in terms the city
manager responded to your
concern about overtime, which
I think it's a valid concern.
>> just want to hear a little
bit from the city manager
Mary. That's right. Sure. So,
Chris, you know, given this
concern, if you could just
share with everyone especially
folks who maybe haven't read
your response. On overtime.
What's how we're addressing
that? Yeah, thank you, Vice
mayor. So I will say start off
with we largely agree with the
areas of concern that MR.
Reilly and his team identified
and that response you'll see.
>> Alignment as well as things
that we've done to address
these areas as well. So saw in
our reductions for next year's
budget looking at the fire
department over time where
they were able to find more
efficiencies in their service
and scheduling. We've proposed
reduction to that budget next
year. Police and fire. We
continue to work on site,
please. They continue to work
with our police department. I
worked with the chief. We
review those overtime
statistics monthly. We go over
the causes and the needs that
that department MAY have to
overcome those overtime
challenges. I will say we're
also looking for ways to
recover those costs. You'll
see later tonight on the
agenda. Agreement with the
fifa host committee to
recover. Now 1.7 million
dollars overtime expended by
the police department. So this
is ongoing. It's something
we're very aware of. And we've
been working internally to try
to alleviate and find ways to
adjust that we can have less
overtime occurrences, although
we know, you know, public
safety, especially we're going
to see a need for overtime
from time to time. Yeah, thank
you. And what, Chris, patterns
are you seeing in overtime? In
other words, is it event
driven? Is it gaps for shift
work where we're down a person
or to what's sand?
>> Yeah, I would say in the
police department particular
it's it's a combination of
some vacancies and those
vacancies kind of go up and
down depending on what we have
classes graduate, we can fill
those vacancies right now are
probably in the 20 vacant
position ranges. But we're
waiting for that class to
graduate. If they haven't
already to be able to recruit
and fill those positions,
you've got everything from
that family leave its large
departments that can affect
scheduling as well. And just
stay cations absences and
things like that with the
events. We usually recover the
costs. So if we expend over
time for a special event
that's approved and that we
have awareness of, you know,
we're able to cost recover
when we have situations where
there's an unforeseen thing,
if you know protest pops up
for their some unrest or
something that the police has
to deal with. You know, that's
something we would have to
cover those are the things we
budget for.
>> And how do we if you are
kind of rack and stack versus
city our size police force of
our size in terms of overtime
a week kind of similar to
other cities similar size.
Yeah. So I haven't looked the
data compared to other cities.
You know, we are unique. We do
experience a lot of different
factors. Other cities don't
side with the scene where a
bit ahead of the curve in
terms of the overtime We have
a spring break season. We have
some other season require some
overtime staffing. So
>> I would assume I don't like
to assume, but I would assume
that because we have some of
those factors of their
communities. Don't have that.
We do expand a little bit
overtime than your average
community. Thanks. That based
on that as want to get your
feedback, the response,
>> Comfortable.
>> I mean, I managers made
some points or there's other
different factors to consider,
too. Not scheduled that we
prepared. You can see over the
last several years just over
time. This exponentially
increasing. So there certain
things to that. Are in, you
know, certain contracts win
over time, kicks in before 40
hours of work has completed.
But, you know, you could
include Days Inn vacation days
as part of your 44 kicks in.
And there's there's certain
things like that. Regarding
when when the overtime kick
some b#
#
, I I understand
that, you know, police
department definitely in fire
will have more over time. They
have more emergencies and MR.
Brown mentioned, you know,
sometimes jurors was a lot
more, you know. And the
committee that was unexpected
relating to a protester and
things like that. So they have
to be out there regardless o.
But, you know, I think there
are some things that could be
done. Sounds like going
through the collective
bargaining. Something process
is what you're suggesting it.
You know, Great that. That's
good for that one. Yet
question coming I'd just also
talk about that a little bit.
So either patter city manager.
So when we talk about overtime
and police, first of all,
>> we adequately you know,
operational needs and the
police department. So as the
chief to come up an answer
from his perspective, I know
we.
>> We discuss this and, you
experience that they can a few
years ago that were driver
over time. But I think for an
hour. For more staff.
>> chief thank you for being
here and thank you for hosting
us today as well and into the
future. What I'm what I'm
concerned about is when we
talk about over time. I got
all that money was spent on
overtime. First, I want to
know if maybe we should be a
larger department to meet
growth of our city. The growth
in the number of people that
visiting our city, the growth
and events, the growth. And
that was mentioned earlier
when we have to go out and we
have to help with, you know,
if there's a state or a
national protest, whatever it
is, because I think when we
look at over time, correct me
if I'm wrong. But the rate
that we pay for overtime is
less than if we were actually
hiring more people. Correct.
So while it sounds like an
exorbitant number, actually,
it is less than if we went out
increased staffing. Correct me
if I'm That is correct. Good
afternoon. Mayor Vice Mayor
Commission Schulz chief,
please several things that you
brought up. That is correct.
Over time is less expensive
than a full-time employee
overall. Currently we have
about 31 sworn vacancies
within the department and then
you add on to as the city
manager mentioned, fmla at any
given time in our department
alone. And I'm sure the other
departments have similar
concerns. We have 20 to 30
individuals morning.
Vegetables who are not able to
report to regular duty. So you
add that to the 30 or so
vacancies we currently have.
That's a good chunk of
officers that are there. Now
to answer your question, how
do we compare with the full
time employees full-time staff
of officers? We are currently
beginning a process where
we're going to an updated
comparison to cities of our
size. As you mentioned, Vice
mayor to include various
issues. We're looking to see
if we can get those our time.
Statistics. We also see where
they are with their sworn
staff. I've conversations with
my colleagues, the other
chiefs around the state and it
appears that cities that are
similar or comparable to our
size do have parsed warrant
officers. So that's where I
want to really compare and
contrast what levels of
staffing are compared to what
our levels are people are to
make a recommendation on that.
That's very helpful. That's
what my next question is going
to be, because I think it's
really important. I think
people understand that the
number of swat officers that
were working with now, what is
that number right now? We're
at 5.71, 5, 7, Yes, I Right
now we have 30 31 vacancies.
We are in the process of
processing certified officers
who apply. But I have yet to
hire any of those as those
miles are just about will have
about 8, but I'll be able to
sign in the near future. I
think when you look at all of
those other cities that you've
mentioned, you're going to
find that we probably are
understaffed. I would not be
surprised if we're
understaffed by even maybe
100. And I just think it's
important as we go forward and
we consider everything else
that we have to consider
public safety being what it
is. We have to be cognizant of
that. But I just want to make
sure that we're putting the
overtime into perspective
because, again, it was
spending less right now on
overtime. And we would if we
were paying for those
full-time positions, that's
all that is correct. Then what
I'm going to look at as I look
at this, I want to make sure
we are doing apples apples
here we are a beach community
with a lot of interest. A lot
of special events, potential
for severe weather impacts. So
I want to compare us to those
same cities. Size percent
France. It I know for off the
top of my head, they have over
600 sworn and Saint Pete. So
that's what we'll be looking
at. And I'll be happy to
report back to says that's not
I look forward to that. And I
do want to just thank you for
your service and the entire
department because I think for
the numbers that we're talking
about in our department, you
guys do an incredible job.
Just want to say thank you.
Thank you, sir. And also to
add to this conversation. Yes,
thank you for the great
service that is given to the
city.
>> a little on sure about
what's being said about that
over time in it Less than the
hire full-time employee
thinking about those employees
who have seniority. This at a
high of a raid, then some that
way below or so. Is that
hapless apples? When we say
that we are paying less?
>> For the over time.
>> Then it is to actually hire
someone that we can utilize in
that space. She wears that
balance is that was a
generalization. And let me
clarify if we had more sworn
officers, we would have more
officers available to cover
her, say the vacancies and the
that regular duty that we
currently see. So that's where
that would come in to it. Come
into play. When we were
talking about what the status
is right now. That was the
comparison of the overtime
versus the full-time employee.
But if you have more full-time
employees that gives us the
ability to have that at
backfill. So to speak, right?
Ok, thank And welcome. Could
could also chime in on that,
too, because, you know, we're
vacancy rate has fluctuated.
So and, you know, last 2
decades, I know when I first
got here, no 6, we are under
Chief Roberts were running a
very high vacancy rate back
then. But out of that had to
do with the fact that we are
in the middle of the war.
>> And a lot of the people who
would otherwise have been
interested in becoming police
officers were over fighting in
Iraq it they weren't. They
weren't signing up to become
police officers. And so it was
very difficult for us to
recruit at that point in time.
Not too long ago. I think
within the last couple of
years we were at like 0
vacancies. So I'm actually
surprised to hear we're back
up at 31. I mean, obviously we
have retirement. We've got
people in dropping so, but I
know I know statistically
speaking, it has been my
experience over last several
decades in various cities that
intends to run about 68%. Has
to be about that number,
right? So that's not unusual
to be to be roughly 6%, which
is where you are just in terms
of the pure vacancy number,
not county fmla. All right.
You know the the issue that
Commissioner Glassman brought
up, there's there's there's
some truth to it, but not
entirely right. So we see this
a lot in the manufacturing
sector where, for example, on
the manufacturing line, your
Ford Motors and demand
increases and we want to
increase productivity,
production opportunity it's
cheaper to pay overtime on a
production line to increase
output that is to hire new
employees. But that's within
what we refer to as a relevant
range at a certain point that
no longer works for 2 reasons.
One, you spent too much on
overtime and to you burnt out
your employees, right? So
there's a significant decrease
and performance amongst your
staff when you start having
them work. Double shifts on
regular basis. So falls apart
at a certain point and also to
Commissioner Beasley pigments
point. If you have, you know,
sergeants and lieutenants out
there working overtime that
six-figure plus as opposed to,
you your your new recruit out
there running and going on the
street. The numbers change
dramatically. So it's it's
it's a much more nuanced
question then simply overtime
to cheaper people. So I think
we need I think we need a much
more robust analysis on this
to to really have an answer to
that question. A great. Any of
the questions of the chief.
Thank you, chief. You're
welcome. And I will take this
opportunity, please thank and
commend my officers. They have
been working diligently,
especially over the 5 to 6
weeks of fifa World Cup I
unfortunately to cancel their
days off. Hopefully they are
given a buy now. But I do
enough or I didn't want to let
that parties their Exactly.
Okay. All right. Thank you,
chief on that on that point
about World Cup matches from
what I saw heard an
experience. You all did a
fantastic job. There So I just
want to give you thank you.
>> They did. Because there are
there are several instances in
my understanding where we have
large crowds gathered in
anticipate the size and scope.
And so just amazing job
officers that to handle so
well. So too, got some
feedback. Some my my friends
with the fbi. And they said
that the coordination and
collaboration was just
outstanding. So to all your
guys and good ladies against
thank you, Commissioner. Thank
you, Jus. Thank you, Jacob.
>> MR. All you want to proceed
with Yuri presentation? We
have to wrap this up soon. We
have 2 other meetings related
thank you. The next. The next
item is couple improvement
plan. You know, again this
this is something I've
mentioned past, but regarding
projects starting projects in
completing projects in.
>> Additional.
>> Change orders and delays
having big significant effect
on the amount that's added to
the cost of these these
projects. And I think, you
know, we've made some. Strikes
this year because we've broken
out that department, there's a
lot more activity gone. Money
is transferred to cip to move
some of older projects to get
those because, you know, the
longer you wait, it's going to
cost more. So, you know, so
some of the some of the
examples that we we saw listed
it in my in my memo. But, you
know, we have some, you know,
significant change orders
related to the water and sewer
projects that we had to
increase and some couple
things that the water
treatment plant. We have some
things with parks and bond
projects. As you know, we've
definitely of understated what
we really needed for that been
a lot of it is because it was
long delay and designed in
getting things getting things
rolling getting in the
construction. So that's kind
of general comments on cip
area. Next item Reserves.
General fund unrestricted fund
balance again. We talk about
this often the reserve balance
for municipality. As for the
government Finance Officers
Association having
expenditures of approximately
16.7 percent of your revenues
expenditures. The city has
established a reserve balance
of 25% of the expenditures as
2 months trying to get 2
months of reserve and and keep
it the restricted balance,
unrestricted at a reasonable
rate during that review of the
budget to see it was able to
confirm that the current
balance of the of bounce for
the city or the monetary
difference. It's an excess of
the 25% that we've established
by 2%. And that represents
approximately 9.7 million
dollars in additional funds
that they could be used for.
You know, various things is
pay down debt, possibly paying
down the. Cola increase that
we had last year for the
General employees, retirement
system, pension plan. And
there's other things mention
even the allocating some of it
to a new fire station, which
had somewhat to do with that.
You know that we have to pay
for the assessments of fire
assessments. We've added fire
stations in there. So that
could reduce future of fire
assessment fees. Then no, it
the last thing I just wanted
to go versus the union
negotiations know as you need
to go since are currently
underway. You know, we feel
that at this point interesting
because at this point time
even there's only one really
union left to go and
successfully got those 2 of
them completed before expired.
Richard in our standing as
this state, the fire is is
coming forward with a
tentative agreement today. So
it's really mainly with the
police departments.
Negotiations. And, you know,
we had a mention with meetings
with budget and city manager,
some ideas while that's still
open, that could be a.
Considered there. We're just,
you know, hoping that, you
know, we can get that one done
before SEPTEMBER. 30th 2026.
But, you know, not sure if
that's still possible, but,
you know, one of the things
that we have mentioned in the
passes that the idea of and
I've seen others, other
cities, some other cities do
of some of the city. Stone is
have a point in time where you
won't be ready to actively
paying the changes to to the.
Increases are showers and
that. This year we're trying
to encourage to get everything
in by the, you know, maturity
of the existing contract. But
that's something that MAY be
kind of look at what we're
still negotiating to see if we
can speed that ups because
believe the last time it went
3 years before we finalize
the. The contract and it was
retroactive for 3 years. So
those are the kind of the many
things that just last they
like the recognize the office
of Management Budget. The that
Matthews recent their staff
helping us go through process
of reviewing the budget. And I
also have our staff City
staff, that they're a great
job in putting that all
together. And I guess I think
Joey's for giving us a
courtside seats over I the
thing with everybody, though.
So. At this address any
questions you MAY have anyone
else have any additional
questions of MR. Brown.
>> They're being none. Thank
you. Thank you so much for
your great working for the
team that you work with. We
appreciate. Is that that
Matthew's here? I don't see it
they went back. Okay. All
right. Great. Thank you, Pat.
Thank you so much. This is
city manager. Does that
conclude our presentation and