[0:31] Good afternoon. Welcome to the board of commissioners bud budget workshop number

[0:36] five. Today is Wednesday, August 26, 2026 and it is 2 p.m. City clerk, would

[0:43] you call the role, please? >> Yes.

[0:47] » Mayor Brooks >> here. Vice Mayor McGee

[0:50] » here. >> Commissioner Tagarini

[0:51] » here. >> Commissioner Dylan

[0:54] » here. >> Commissioner Gavay

[0:55] » here. >> All are present.

[0:59] » With no public in attendance, we will move on to discussion items. Fiscal year

[1:04] 2027 budget workshop number five. And I will hand this over to our finance

[1:11] director. >> Great. Thank you. Okay. Okay, this is

[1:16] our last workshop before our our uh first reading of the approval of the

[1:21] millage rate and the and the proposed budget book. And we'll do two readings

[1:26] in September. So, this is the last workshop. So, if

[1:29] there's any concerns, questions, issues, things we need to update or change, um

[1:33] now is the time um to voice those. This is still a live document that is can

[1:40] certainly be subject to change if there's anything that you um feel that

[1:44] needs amending. But this is the the the tenative budget book. So the full

[1:48] deliverable, it's 163 page uh document. We're going to go over every single page

[1:53] in great detail. Just kidding. I've got just a few things. Uh and there's a lot

[1:59] of there's a lot of content here. And so a lot of what we've presented thus far

[2:03] that I presented has been a lot of numbers throwing numbers at you. here

[2:06] has a lot of narrative from our strategic goals and objectives. Um

[2:12] reasons for changes in in bud in in budget from one year to the next. Um a

[2:18] summary of our revenue sources and where those come from and by fund. Uh our

[2:22] capital improvement plan, some narrative around that. Just community statistics.

[2:26] We've got a lot of narrative in various parts and sections of the the budget.

[2:30] It's a departure from previous year's budget documents. There's what's called

[2:34] the uh GFOA distinguished budget award present uh uh the GFOA distinguished

[2:41] budget award. Uh the GFO is the government finance officers association.

[2:46] They we are uh annual what we call our ACER our annual comprehensive financial

[2:52] report. That's our annual audited financial statements. We present th that

[2:57] annually to the GFOA and they give us an award for excellence um or certificate

[3:02] of achievement and excellence in financial reporting. We've never

[3:05] submitted our budget because it never qualified because it's got to have

[3:08] certain sections and and content. And so this is the first year I said, "Well,

[3:13] let's prepare the budget book a little bit differently this year." Um and in

[3:17] accordance with the GFO requirements. So you'll see a lot at the top of various

[3:22] sections it'll say like GFO O2 department fund relationship because

[3:26] that's what it wants you to cover. Not to say we're going to submit this for an

[3:30] award. We certainly could now now that we're presenting a more GFO compliant

[3:35] budget book. So if you try to look at the budget book last year and the budget

[3:38] book this year the the the table of contents and the

[3:43] underlying content within is is definitely different. But um I think

[3:47] this tells a good story and what I just want to do is kind of focus on maybe

[3:51] certain certain areas where we just really kind of get into the highlevel

[3:56] numbers and what they mean. And then um so I've got kind of a prepared

[4:00] presentation for I don't know 30 45 minutes to an hour tops and then turn it

[4:05] over to you all if you all have any specific areas that you want to cover in

[4:09] in greater depth. So, I figured we can start with my presentation and walk you

[4:13] through certain pages that I want to highlight and then at the end and

[4:16] certainly we'll go through dialogue and do some Q&A as we talk through that and

[4:20] then at the end if there's any section out of this 163page document that you

[4:24] want to dig into further um because I'm sure you all read it cover to cover uh

[4:28] then we can certainly uh cover that uh and if if there are none then this will

[4:33] adjourn early. Okay. Okay. So, are we ready to explore

[4:38] then? Let's go to uh what I first just want to start is let's look at just

[4:43] again the the the financial structure of the city, its funds and its departments.

[4:47] So, that's in the department and fund relationship section and that is on page

[4:52] 25 of your packet which is page 23 of the budget book.

[5:04] So this shows our our general fund and all the uh departments within the

[5:09] general fund and then we go into the other funds. And so if we just start

[5:13] with general fund, this just gives us a quick overview of okay, what are all the

[5:16] departments that we have within the general fund? Um what do they do? What

[5:21] are their goals and objectives? We've got all that information and in um

[5:25] departmental goals and objectives summary. Um, but if we're just focusing

[5:29] on that and all that's great reading to understand like, okay, what are what are

[5:34] accomplishments of the community development department and what are

[5:37] their initiatives, you know, going forward. We have all that narrative

[5:40] explained throughout the uh within the budget document. But if we just focus on

[5:44] the numbers here, uh, let's look at general fund and the

[5:49] department. So, we're about 20,611,965. That's what we have budgeted in expenses

[5:56] uh, for the general fund. Now, if you wanted to dig into that and say, okay,

[6:00] well, geez, what's comprising most of that? Well, looks like fire EMS is

[6:06] 7,371,940. That's 35.8%

[6:11] of of the general fund. So, what does that consist of? So, I just want to show

[6:15] you like how to navigate through this and look at some highle information and

[6:19] then be able to uh drill into specific accounts and and understand what ma what

[6:27] comprises um certain of these department expenses. And maybe we can just hit the

[6:32] just for an example just kind of hit the two uh the two or three largest ones

[6:37] like fire and um non-EP departmental and maybe recreation. So, if you look at

[6:42] fire, so that's about a $7.3 million budget. And if you look at fire, that's

[6:47] on going to be on page 134 um of your or I think it's maybe 13 page

[6:56] 136 of your packet 134 of the document.

[7:03] So, this is towards the end. This gives you all the departmental detail. And so

[7:08] in all these budget table presentations, we've got the first two columns are

[7:13] actuals that were those are actuals audited. So audited 2024, actual audited

[7:19] 2025. And then the next is your fiscal year budget minus one. So that's your

[7:24] current budget of 2026. And then your last column, we have a header legend at

[7:28] the top there that shows that is your 2027 proposed budget.

[7:33] So we start with revenues. So the fire department does generate revenues. Um so

[7:39] it has uh

[7:43] most of that revenue is $3 million. So I want to be clear on a $7 million fire

[7:48] budget and $4 million revenue. Let's take 3 million out of that because that

[7:52] is the cons the remaining budgeted cost of construction of the Readington fire

[7:58] station. Um that is just an in-n-out. It's not our asset. So, it's being

[8:03] treated as an operating expense and other current charges. Um, and the

[8:07] revenue, it's still our expense because we're incurring it. We're um managing

[8:12] the project. Obviously, we're receiving the invoices. We're paying the vendor.

[8:16] Then, we're getting reimbursed by Panelis County. So, it's an in-n-out

[8:19] from that standpoint, but on grossed out basis, it's 3 million of revenue, 3

[8:23] million expense. So, the true operating budget of the fire EMS,

[8:28] not necessarily that 7.3 million. I would reduce that by 3 million to uh

[8:33] about 4.3. And then you can see the sources of

[8:37] revenue on from our main sources are going to be the Readington Beach fire

[8:42] contract and the and the Penllis County EMS to help support our our that

[8:46] Readington Beach EMS station.

[8:51] And then you can just look and compare and say, okay, yeah, you know, what do

[8:55] expenses look like uh in the fire department? And it is our largest

[8:59] expense in any single department in the city operationally. If you add capital

[9:05] like storm water that's more but those are big capital storm water drainage

[9:09] improvement projects. So a fire EMS is the is the largest um expense of the

[9:15] city operationally uh and most of that is personnel. So you

[9:20] can see we've also had headcount increases. If you just look on the

[9:24] bottom of page 136, 134 of the document of the of the budget

[9:30] book, salaries and wages, you can see from 2024 actual of 1.35 million, now

[9:35] we're at 2.28. So, we have had some increases in headcount uh more recently

[9:41] um uh which we've already talked about as a

[9:45] group of of hiring more um uh firefighters um to go out on calls. So

[9:52] we have had year-over-year increases in costs in in fire. So that's been a a

[9:57] contributor a larger contributor to the 20 million. Then the next would be

[10:02] non-EP departmental. So uh that's the next largest expense of the general

[10:07] fund. So if you want to dig into the numbers within non-EP departmental

[10:13] and let me stop and take a breath.

[10:18] So we can go well we can go right to the non-dep departmental section. So what I

[10:22] did I showed you these are all your in your department fund relationships. Your

[10:26] first table there is all your expenses in total budgeted for all your general

[10:32] fund departments that comprises a $20 million um roughly $20 million expense

[10:40] budget. I've already showed you. Well, take away three of million of that

[10:44] because that's not a recurring operating because that was just that's going to be

[10:46] a one-time um expense to build out finish building out the um the

[10:52] Readington Beach fire station. So, we're kind of looking at 17 million

[10:58] and change in just in what's the operating um budget for the general

[11:04] fund. There's hardly any capital in the general fund as well, but I'm going to

[11:07] add a separate table to show you operating versus capital on a fund by

[11:10] fund basis. I'll show you that momentarily. I just want to finish this

[11:14] analysis so you can see departmental costs in total and then how you can see

[11:18] that breakdown to prior years of actual current year budget and next year

[11:23] proposed budget.

[11:27] before I dig into non-dep departmental any questions on what I presented thus

[11:30] far or >> so I'd like to just for and I I'll do it

[11:35] now instead of waiting just for clarification where in the public uh

[11:40] there have been comments made that we our budget is blown out of sight we're

[11:45] spending over $40 million a year and all this page shows the actual cost of doing

[11:51] business in MadiRaa Beach at about $17 million a year and Everything above that

[11:58] when you look at our overall budget is capital improvement projects or projects

[12:04] purchasing the land doing things like that. Would that be a fair assessment

[12:09] Andrew? >> It would. Yeah. And we have a table that

[12:11] that expresses that explicitly. So that's just the on page um 26 of your

[12:17] packet 24 of the book. There's an what's called aggregate view across all funds

[12:22] operating and capital analysis governmental funds. So that'll show you

[12:26] what we have budgeted for revenues, fund over fund, then what we have budgeted

[12:31] for expenditures, less capital outlay, and then we have a line for capital

[12:35] outlay. So, I bring it up because um when you're having a conversation with

[12:42] someone and they talk about us spending $48 million this year in a budget,

[12:49] although that is what the number is, that's not really a factual statement in

[12:55] that if you looked at everything over the 17 million, the 17 million is the

[13:01] cost to do in business, keeping the lights on, paying the staff, maintaining

[13:04] the day-to-day days and everything else is road projects, building something,

[13:10] doing something. And if we wanted to reduce our budget to a $20 million a

[13:15] year budget, we would no longer be paving roads or doing storm water

[13:20] repairs or any of the other various things that we do that are

[13:25] projects, maintenance projects.

[13:29] » Exactly. So when you see something in past budget documents, let's say we have

[13:33] a 40ome million budget, we would show an ambitious capital improvement plan that

[13:39] might be 20 plus million with all our storm water projects, some recreation

[13:45] things, some you know um you know public works projects. when you

[13:50] add them all up, yeah, there could have been a 20 plus million dollar capital

[13:54] alone of which we often only, you know, actually

[14:00] incurred a small subset of those kind of proposed projects. The true operating

[14:06] budget is, as you see here on page 24 is more in that uh for the general fund

[14:12] about 17 million across all your governmental funds about 2021 million.

[14:19] » Thank you.

[14:22] And so that's the that's the governmental funds. We also have our

[14:25] proprietary funds. And our proprietary funds are are more intended to be

[14:30] self-sufficient. So we've got marina parking, sanitation,

[14:34] and storm water. And the first three are definitely

[14:38] self-sufficient. Marina parking have been operating at a at a at a positive

[14:42] profitable clip uh for a number of years.

[14:47] And you can see what those both revenues, expenditures, and then capital

[14:51] outlay, which again is not s is not significant for any of the funds or

[14:56] departments except for storm water with a $4.9 million proposed capital outlay.

[15:02] And I know we've had strategic planning, we've talked about projects, you're

[15:05] like, well, wait a minute, shouldn't we have a lot more in projected capital

[15:09] outlay costs? We'll I'll cover that when we get into the capital improvement plan

[15:13] section of the book because it's specifically I'll I'll point you to a

[15:16] paragraph where we talk about kind of that the the uh plan around development

[15:22] and and um and future plans.

[15:29] So that's so that's a good distinction. you know, expenditures operating and

[15:35] operating consists of mostly personnel within just your operating expenses,

[15:40] maintenance, repairs, contractual services, professional services,

[15:46] um you know, accounting and auditing, um uh

[15:52] department supplies, office supplies, those kind of things. are operating.

[15:56] Capital means I'm uh either buying an asset of something that's greater than

[16:02] $5,000 and has a useful life of more than one year that I will the city will

[16:07] own. Uh so that's like equipment and vehicles or projects. So improving

[16:12] infrastructure or improvements to a building or to a park um that has a

[16:17] multi-year value. So that's those are what we call capital nature. That's the

[16:21] distinction between operating and capital.

[16:27] So going back to just those that general fund and those um departments and their

[16:31] expenditures, the highest was fire. So the next highest is 2.86 million is

[16:36] non-EP departmental. I'm not going to go through every department and go through

[16:39] every line item. We'll be here forever. But I just want to show you like if you

[16:43] feel like, geez, I'm lost in this 163 page document. I want to be able to just

[16:47] understand better how much is, you know, what are we paying? What is non-EP

[16:52] departmental 2.8 million? What does that consist of? City manager 914,000. What

[16:56] does that consist of? Finance 787,000. So we have all that detail at the

[17:01] departmental level um towards the back of the book. So if we look at non-EP

[17:05] departmental, that's going to be on page uh 148 of your agenda packet 146 of the

[17:12] book.

[17:18] So the expenses for non-EP departmental start kind of lower towards the end of

[17:22] the page. So for the first year in non-EP

[17:25] departmental, we are having a uh a budgeted position. Um we've never had

[17:32] personnel in non-EP departmental, but that's the facilities and project

[17:36] coordinator um that your city manager um as we he and I discussed is going to be

[17:42] allocated to a number of different projects for a number of different funds

[17:46] and departments. So instead of trying to allocate his time 72 different ways,

[17:50] we're just placing that individual as in our non-EP departmental and then through

[17:54] an overhead allocation process, we'll be charging out the other uh participating

[17:59] funds using that individual's time. So that's the fir our first personnel um

[18:05] uh related budget um for that position. But far and away the largest expense is

[18:14] going to be towards the end and that's on page

[18:18] 150 of your packet 148 of your book. And there's two large uh transfers.

[18:26] There's a transfer to debt service fund and there's a transfer to the stormwater

[18:30] fund. Below that was a transfer to the

[18:33] Archabald fund and that happened back in 2024 for 2.2 million. that was to help

[18:41] uh fund and provide funding to the Archabald Park Fund for the beach

[18:44] growing renourishment project. Um because we did get some grant money for

[18:48] that, but we had um our own uh expenditures incurred by the city far in

[18:55] excess of what we re received in grant money. So we needed that general fund

[18:59] infusion of 2.2 million, but nothing budgeted since the consistent budgeted

[19:04] transfers out of the general fund. So that's included now in our operating

[19:08] that's 17 million technically you know 20 million but you minus out the 3

[19:14] million from the um from the Readington station that's offset by 3 million of

[19:19] revenue about 17 million of that general fund expense. So, we got about 1.5

[19:24] million 1,495,000 that's going to debt service to the

[19:28] stormwater fund to pay debt service from that uh 2019

[19:33] um $15 million debt um issuance that's being paid over a multi-year

[19:39] period. Also, uh about 300,000 to the debt service

[19:45] fund. That's for the the city center construction and everything you see here

[19:50] that occurred back in 2013 I believe is when that was issued. So we have about a

[19:55] $1.7 million debt service requirement on top of our other operating obligations

[20:02] personnel and operating cost supplies maintenance etc.

[20:08] So that's why that those debt service requirements are that's being borne by

[20:12] the general fund are included in non-EP departmental. So that's why it ranks

[20:17] number two in our largest um uh departments in terms of spend.

[20:25] And then number three is recreation. And so that one's going to be on page 155 of

[20:30] your book of your packet 153 of your document.

[20:41] So you can see we start with just with just I I wanted to just show you revenue

[20:45] so you can see what a department might be individually generating in addition

[20:49] to its expenses. I know we I we we I report this in a number of different

[20:54] places but I thought it's good to also have here so you can see revenues

[20:58] compared to expenses. So you can see all the uh special event fees, recreation

[21:04] program, after school program, summer program, etc.

[21:07] the uh totaling 1438,500 in revenues. And then the cost of the

[21:13] recreation is going to be at the the total at the bottom of your budget

[21:17] expenses, which is 1,715,500.

[21:23] And we can compare that over a multi-year period. So we can compare the

[21:26] far left column. So, I'm on the bottom of uh page 157 of your packet 155 of the

[21:35] book. That's 2024 actual is 1.46 million. 25 actual is 1.47 million. And

[21:43] then we budgeted 1.58 uh million in 26 and then 1.715

[21:50] and 27. So a lot of that increase is mostly in personnel and we didn't add a

[21:55] lot of positions but towards the end of fiscal year 25 beginning of 26 we went

[22:01] through a salary study if you all recall and the one department that had I

[22:06] believe the most um uh uh pay rate changes

[22:12] um were was in recreation. So a lot of those lower wage positions that that

[22:17] increased uh more substantially. So recreation saw the big had the biggest

[22:23] impact on that salary study. Um so if you look at the first expense

[22:30] in

[22:33] from 468 uh salaries and wages I'm at page 155 of

[22:39] the packet 153 of the book. that first line salaries and wages 468,000 actual

[22:45] 493 actual and it's bumped up to 633,000 um budgeted

[22:52] and those reflected the the newer pay rates that went into effect um and I

[22:57] believe the beginning of 2026.

[23:05] So that's just the blueprint for you to be able to go and if you have any

[23:08] questions, you know, at the end of this or even if you want to ask me

[23:11] individually, I'm digging into your finance department, buddy boy, I'm going

[23:16] in all your line items. I want to and so you have that basis of comparison to see

[23:20] two years of actual history, what we budget in 26 and what we budget in 27.

[23:24] And then you get the macro view like I showed you on page 20 um five of your

[23:30] packet what all those departments and their budgeted expenses are for fiscal

[23:35] year 27 within the general fund. And after that we go into the um

[23:43] the different funds. So, like I showed you on page 24/26,

[23:48] if we go back up there, that operating versus capital analysis.

[23:59] » Sorry, page 26 of your packet. Page 24. So, that

[24:03] » is

[24:06] uh 24 is the booklet, 26 is the packet. Yeah.

[24:10] » Whatever I say, it's always going to be a two-page difference, which is which is

[24:14] at least good. were consistent. >> Gotcha.

[24:22] » Andrew, I have a question for you. >> How do you figure out

[24:27] how to budget

[24:31] a a certain cost? I mean we we look at let's say the past

[24:37] three years of the expenditures and then it's like

[24:43] let's say 400 some odd,000 and then the budget is 600 and plus. So

[24:48] how do you how do you drive from what we have been spending versus the budget?

[24:57] How do you figure that out? So for for budgeted expenses,

[25:04] we've got either kind of one of two methods. One's either what I would call

[25:07] like specific identification and what that we generally budget all of

[25:12] our personnel and capital under that specific identification method. What

[25:15] does that mean? We have in our our budgeting module within our ERP system,

[25:20] we have what's called budget position control management. That's a basically a

[25:23] roster of all of our filled and vacant positions and we assign them a pay rate,

[25:29] whatever their pay rate is. Now we also include a coal increase, merit increase,

[25:34] so projected increases for the next year. We assign them to their respective

[25:39] fund department combination. And then we also have what's called budget benefits

[25:44] that will say okay well they're also entitled to health insurance and which

[25:48] employees get health insurance and how much how much retirement FRS um and then

[25:55] we have you know workers comp rates as well um that fluctuate depending on the

[26:00] nature of work they do. So those are all like specific employees either filled or

[26:07] vacant. It could be vacant positions or their actual employee with their real

[26:11] information and that develops our personnel budget. So that's not just a

[26:15] well shoot. We spent this department had 342,000 of salaries last year. Let's

[26:22] just do 360,000 this year. Let's just do a little bit of a bump. Um no, it's very

[26:26] specific. We go employee by employee. Have all that information into our

[26:30] budgeting module. And that's and so then and then that's where I'm generating

[26:34] these reports and the system's calculating all of the actual budgeted

[26:38] salaries and wages. It's based on actual calculated um figures.

[26:45] Same with capital. Capital is not like well we spent 3 million last year in the

[26:50] Archabald fund or in the Sorar fund. Let's maybe spend four million this year

[26:53] and and you know it's kind of a field. No, we identify specific projects and

[26:59] then we have a multi-year capital plan. Here's what in 20 um well spent in 27 28

[27:07] 29 30 and you project it on a project by project basis and the sum of all those

[27:12] projects for a particular fund department then translate to my capital

[27:16] budget you know on a highly summarized level. operating is where we've got a

[27:22] couple options and some diff different um department heads do it a little

[27:26] differently. Some look at what we've budgeted what they budget in the past.

[27:30] They look at some of their past expenses and then they make their best estimate

[27:33] of the next year's budget. Others an other option could be again specific

[27:38] identification for the finance department accounting and auditing. I

[27:42] know we've got our audit firm and our fees. So I identify that in the system

[27:46] and here's our project projected audit fees. we pay our

[27:51] our um uh FA, our municipal advisor, we pay them this amount. And I'm

[27:56] specifically going through line item by line item what those are. And so those

[28:00] are a couple different ways that we can then create um a budget for operating

[28:05] costs. um either by looking at past year trends

[28:08] and saying here's what we budgeted last year, let's do a 5% increase or maybe a

[28:13] decrease depending on what I what I think is going to incur in the next year

[28:16] or specifically identifying um expenses that you know are going to uh occur next

[28:22] year. So that's for personnel and capital. It's very specific to the

[28:28] employee and to the project. for operating it's a bit more of an estimate

[28:31] since that can occur from a number of different vendors and different types of

[28:35] expenses and then revenues is more of the projection how you know my advalorum

[28:41] taxes that's a pretty good calculation here's my you know what the property

[28:46] appraiser is saying is our our taxable values here's our millage rate um times

[28:51] a percent you know 95 96% for collection rate and here's our proposed um

[28:57] advalorum tax revenue For other revenues, it's more looking at

[29:01] historical trend information. What have we been collecting in prior years? Do we

[29:04] is there any environmental factors that might change as a result of that that we

[29:08] put our best estimates forward for revenues?

[29:10] » So, if if the expenditure is less than the budgeted cost at the end of the uh

[29:16] budget year uh fiscal year, you can put that funds back into like general

[29:24] funds. >> Good question. That's next thing I'm

[29:27] going to go on go is we're going to look at fund balance analysis. So I want to

[29:30] go through uh a page of called that's called fund balance analysis. So and

[29:35] that's exactly what happens. You have your actual fund balance then you have

[29:39] your year's results and then that fund balance either increases or decreases.

[29:44] You increase your reserve or you decrease them. Then you have your

[29:47] budgeted results and then here's our budgeted ending fund balance at the next

[29:52] year. And that I'll show you a schedule that'll depict all that. And I kind of

[29:56] want that's my next great segue. That's what I want to talk about next. And

[30:00] going through on a fund by fund basis what reserves, beginning reserves,

[30:04] ending reserves look like, ending budget reserves look like fund by fund and some

[30:08] that um um that merit some additional explanation. I'll go through that.

[30:17] Any other questions or do you want to walk through that now?

[30:22] Okay, good. You haven't lost me completely yet. We're we're still

[30:26] hanging on by a thread. All right, good. Let's go to page uh 60 of your agenda

[30:33] packet, page 58 of your budget book,

[30:42] fund balance. And this isn't in this is not in prior year's books, our budget

[30:47] books, because again, we this is a newly prepared budget book that I I created.

[30:52] um to be more aligned with the government finance officers association

[30:56] GFOA distinguished budget award program. And so they have a whole section fund

[31:00] balance that that shows this information and I like it because I think it it

[31:04] presents very valuable information on well gez we're our expense our budget

[31:08] expenses are higher than our budget revenues. Can we afford that? Well yes

[31:12] if we have sufficient reserves to capture it. Um so this goes through you

[31:17] know um if we look at this table here on this in this page let's kind of just

[31:23] take this fund by fund. So in the Archabald Park fund we'll

[31:28] start we'll start first um we have 2025 ending fund balance net

[31:35] position. So this is based on audited figures. So that's this is done 2025

[31:41] already done audited. So these you could agree to your audited financial

[31:45] statements uh fund by fund this is the are basically ending fund balance right

[31:50] it's the difference between assets and liabilities

[31:53] um and what either increases fund balance every year or decreases it it's

[31:57] called change in fund balance that's revenues minus expenses

[32:02] so starting in 2026 end of 2025 we're at 663,000

[32:08] so thus far in 26 we had some um some beautifification projects, park pocket

[32:14] park improvement projects. We have been spending some capital

[32:18] had had some capital expenditure in the arch ball park fund and that's um you

[32:23] can see this is year to date as of like early August when I kind of put the

[32:28] finishing touches on this. So these are near actual numbers to date. um maybe

[32:35] just a few weeks outdated, but otherwise this is capturing actual activity year

[32:40] to date in fiscal year 2026, which started October 1st to early August.

[32:47] So, you can see we do have a a a pretty wide gap there from 539,000 revenues

[32:54] to 1.1 million in expenses. So, that's now we're that's depleting

[33:00] our fund balance. Then in 2027, more of the same thing. We're at 577,000

[33:07] of budget revenues to 1.45 or 1.46 million expenses. So budgetarily, the

[33:13] math isn't going to work. It's not working long term, right? We're

[33:17] expending, we're proposing to expend much more than what we're generating in

[33:23] revenue. So let's go take a little deeper dive and to see what what's

[33:26] causing that. What does that look like? So, let's go down to page uh 35 of your

[33:33] packet, page 33 of your book.

[33:49] Okay. So, start it starts. So this is all this

[33:54] is shows you revenues and expenses by by fund for all of your other funds outside

[33:58] of the general fund. So starting with Archabald Park, Archabald Park,

[34:02] Archabald fund is fund 110 and then the first table is all of your

[34:08] revenues. The next table is all your expenses.

[34:12] So the main primary source of revenues in the uh for Archabald Park is your

[34:18] parking meters. So, we have that modestly budgeted at uh

[34:23] 550,000.

[34:27] Um

[34:30] I think 2024 is probably a better estimate of what your true revenue

[34:34] potential is and that was almost 600,000.

[34:38] You see in 2025 it went down to 383,000. But remember, we had a giant mound of

[34:45] sand for a period of multiple months before we even opened up that lot. So

[34:52] that ate into a lot of our revenue potential

[34:55] in 2025. I'm impressed that we had the recovery that we did and got 383,000.

[35:00] So I think 550,000 for 27 and 26 and 27 budget is even a little conservative.

[35:09] Uh, if you want to give me a moment, I can even pull up

[35:13] um what our actual revenue is thus far in just that one account

[35:23] because I'm curious myself.

[35:28] So, we're at f $515,95 just on the Archabald uh beach parking

[35:34] meters. So, I think we'll definitely meet or

[35:38] exceed the 550,000 budgeted um by the end of September.

[35:44] So, it probably maybe get closer to about 600,000,

[35:48] more in line with what we were at in 2024.

[35:53] And then we've got the beach walkover chair rentals. That's a $12,000

[35:57] um annual. And then some interest. We also, if you see above that was a

[36:04] concession snack shack. So that was a good $102,000 and then that frigin

[36:09] hurricane hit and now we're at nothing. Right? We budgeted in 26 I think at the

[36:15] time when we went through the budget process in 2025. We thought we could

[36:19] slap some repairs together and and rent it out, but realistically no. We've got

[36:25] um more work to do on that. So conservatively, we haven't budgeted any

[36:28] revenue for Snack Shack. That's not to say we can't um

[36:35] um make the the the needed repairs and actually have the tenant in and and rent

[36:40] that out and actually generate some revenue in 2027. So revenue is possible.

[36:45] At baseline, it was about $100,000 a year. So hopefully we can get back to

[36:48] that at some point. >> So Andrew, the FEMA fund, did that is

[36:54] that included anything in in in anything in here?

[36:59] the FEMA.

[37:07] So, our our FEMA reimbursements I think were uh at least thus far have just

[37:12] recorded all in the general fund even though I know some of it is maybe

[37:17] general fund related and some you can maybe carve out to other funds. I think

[37:20] when we got the check we have a a a FEMA grant revenue account in the general

[37:25] fund and that's what we parked it. We can certainly dig into that number more

[37:29] and and and allocate it to to different funds

[37:31] » because you can only spend that money in a certain way, right, for construction.

[37:36] » Well, so those those FEMA funds is that's a reimbursement. So we've already

[37:39] already incurred the um the damage and the costs. Um and so

[37:46] essentially that's just a reimbursement for the cost that we've already

[37:49] incurred. We've had to show FEMA. It's a pretty arduous process pulling up all

[37:54] the the the documentation that they want. That includes evidence of of of

[38:00] damage, pictures, and costs, rehabilitation costs incurred. So, we've

[38:04] already incurred those costs. We're just looking to we're looking to get

[38:07] reimbursed. So, we're keeping that out of the out of

[38:11] the um we don't I don't believe we have any FEMA revenues

[38:16] um budgeted, but that's not to say we cannot we won't be getting FEMA revenues

[38:22] trickling in over the next fiscal year or two years, but it's just a little

[38:26] unpredictable based on what they reimburse and the timing that I think we

[38:31] excluded from from the budget.

[38:35] Um so then getting back so realistically if everything's operating normally we'd

[38:41] have about 600,000 and 100,000 from the uh parking meters and the snack shack

[38:49] respectively. So that puts us at about, you know, 800 uh, excuse me, 700,000

[38:56] plus interest and the chair rentals 7 maybe 750,000.

[39:01] And that can as long as we're just doing pure, you know, or in our personnel

[39:06] costs, we're allocating um, either part uh, part of maybe public

[39:13] works and maybe one one or so dedicated employees that handle parks. that's

[39:18] that's getting absorbed into the salaries and wages expense. So some

[39:22] those are the personnel costs that are pretty fixed year-over-year.

[39:26] Uh we do have a large if you look at the bottom of page 36 of your packet 34 of

[39:32] the book maintenance building DAV I believe those are the budgeted costs for

[39:38] the um for the snack shack um uh repair.

[39:44] So that would be nonrecurring. So, if you take out that, that's non-recurring.

[39:50] Um, and then you look at the end of the the last page, we don't really have we

[39:56] have $60,000 in capital. So, you take out five $560ish,000.

[40:02] Just the pure operating expenses can be more like $800,000. So, we can maybe ek

[40:08] out close to break even if we're not incurring any capital costs or we don't

[40:12] have any large um maintenance work that we have to do.

[40:18] And then our biggest maintenance expense is maintenance grounds parks. That's at

[40:24] 150,000 um budgeted that that's on that last page that I'm I went over page 37

[40:30] of your packet 35 of the book. That's your besides the maintenance to that to

[40:37] the snack shack which was more one-time hurricane induced um your ongoing

[40:42] maintenance expenses is more on the um maintenance grounds parks. So we have

[40:46] budget 150,000. So it's not barely probably not breaking

[40:53] even uh on an annual recurring basis as as long as we don't have any capital

[41:02] needs. But as soon as we do, then we know that this Archabal park fund is not

[41:06] self-sufficient. And I'm not sure that's exactly the

[41:11] desire that we need that that fund to be self-sufficient because we care about

[41:14] our parks. Um just presenting the reality that periodically we might need

[41:19] to like we had that $2.2 $.2 million general fund transfer into the Archabald

[41:24] Park to help fund the beach groin reconstruction project based on just

[41:30] these operating needs, the lack of revenue on the snack shack. Now, um and

[41:36] the the maintenance or repairs and maintenance costs to to u renovate

[41:41] damaged areas. um we'll need another another infusion from the general fund

[41:47] and then hopefully on a long-term basis we can be at or close near near break

[41:51] even but that one's that one's tight. >> So you said it's non self-sufficient

[41:56] correct? Well, currently right now in this in

[42:00] this we have some one time I'm saying what's in the long-term horizon on the

[42:04] Archabald Park Fund if we wanted to fund those those personnel costs and fund all

[42:10] the the maintenance around all the parks around the entire city. Um those two

[42:15] revenue sources are barely sufficient to do that. Well, I'm not sure that this is

[42:21] the exact time to bring this up, but I do believe one of our residents or

[42:26] commercial people was talking about doing a long-term lease on the building

[42:32] if and he would be responsible for the interior

[42:36] um building things and if there would be

[42:40] another hurricane or storm, he would make it such that it could be removed.

[42:46] And once again, like I say, as we're talking budget, you know, it's kind of

[42:51] putting the cart before the horse, but um is that something that it could

[42:56] become, you know, a revenue if we had a

[43:02] long-term lease, I believe, and that's why I'm just

[43:07] bringing this up at this point.

[43:12] » Open form if anyone wants to address I mean, anything that's at least that

[43:15] we're >> So, I will. So, Archabald, the snack

[43:18] shack, has always had a long-term lease up until the hurricane when the it

[43:25] became uninhabitable and needs repair. So, once we repair it, it will go back

[43:31] out to bid for a new lease on it and that person would be responsible in a

[43:37] triple net lease to maintain it and take care of it.

[43:41] So, that will happen again. That revenue will come back, but it won't come back

[43:44] until we repair the building and make it where someone else can come in. When

[43:49] they go in, the building will be white boxed. They will be responsible to bring

[43:52] in all the equipment for it to be a restaurant and to be a retail

[43:56] establishment. That's required by the lease. So, that'll happen.

[43:59] » Thank you. >> Yeah.

[44:05] » Hopefully sooner than later.

[44:10] » Okay. Okay. So then back to page 60 of your packet. Oh no, sorry. Uh yes, page

[44:15] 60 of your packet 58 of the document. So that's the Archabald Park fund. I

[44:23] just wanted to give you kind of a realistic overview of where it's at

[44:26] currently. Um and kind of long longer term projections.

[44:32] Um building fund next. That one um we've

[44:36] already talked about to a degree. uh the 2025 ending fund balance of almost

[44:43] $70,000. It had a much higher fund balance before um but then we had the

[44:48] hurricane hit and we had uh the um waving of the permit fees as you know.

[44:53] Um some of that bled in a little bit in 2026. Um but um overall our permit

[45:02] revenues definitely increased. I think it was maybe 400 something,25

[45:07] 26 is already trending to 700,000 plus. Um but we have incurred a lot of

[45:12] expenses 1.1 year to date on expenses in the building fund

[45:19] and a lot of that because we had you know uh turnover and we had uh

[45:23] outsourced positions that were full-time in terms of the role that were uh

[45:29] outsourced to an external uh third party. And so that by by nature is a

[45:37] more expensive proposition um when you have a third a third party

[45:42] doing a full-time role within your organization. So we're making strides on

[45:47] on hiring and filling positions internally. So that is going to reduce

[45:51] our professional services expenses and get us more um into a better position in

[45:56] terms of personnel costs both contractually and uh internal FTEEs.

[46:03] But then the other thing that we need to do is is and we've already talked about

[46:06] this so I don't want to belabor it is just reevaluate the permit fees that are

[46:10] being charged. They were at 2% of um of of of total permit value. that got

[46:17] reduced down to 1% and currently that's not sufficient to meet the operating

[46:22] needs of this department. Um plus the state has now come out with regulations

[46:27] that make our our require compliance over time to be more

[46:32] of a um service model like looking at our actual um time and materials and

[46:39] expenses that go into the work to generate the permit. So, that's all in

[46:45] progress and Marcy's here if you have any other specific questions on that.

[46:49] Ultimately, the long-term trend is that this is uh a a break even proposition.

[46:55] And so, it it's not currently, but that's that's the goal of the future.

[46:59] And so, we've got a team in place that'll be working on that. But um where

[47:04] you see this the fund balance and projected negative 1.57 million. Yes,

[47:11] that's concerning, but that's something we'll be coming back to you all with

[47:14] with proposed fees changes on our on our um permitting and all of our community

[47:19] development fees. Uh I'll skip over debt service fund and

[47:25] the gas tax fund. Those are um gas tax fund is largely kind of break even.

[47:30] There's not a lot of expenses running through that. We have some gas tax fees

[47:33] and then we've got some um kind of lighting and and street maintenance

[47:37] expenses that go into that. Debt service is just taking that general fund

[47:41] transfer. It's increasing its fund balance because it's earning interest um

[47:46] on its on its pulled cash balance. Um but ultimately it's taking in the the

[47:51] the transfer in and then making the debt service payment for the the 2013 bonds

[47:57] that were issued. So then you've got the general fund

[48:04] where we were at end of 2025 almost $19 million pretty healthy fund balance. Um

[48:13] and so then as you're aware that did get um

[48:18] uh largely depleted if you look at your 2026 revenues year to date and 2026

[48:23] expenses year to date. And I walked through this if you all recall from last

[48:27] Friday our strategic plan meeting. We talked about this a little like where

[48:30] does general fund sit currently. So if you just look at those two numbers

[48:35] 32,223,791.

[48:39] So if I actually take those two numbers and I'll just do the little math on my

[48:43] own and let's pull that up and and run it through. So we've got some

[48:47] reconciling items to contend with. So you've got 32 million

[48:53] 223791 in expenses minus 18 million488

[49:02] uh 287 in revenues. That's a 13,735

[49:09] um,000 difference. And then you add back in $18

[49:15] million or or back that out $18 million 120,000 the closing cost included.

[49:26] That's the purchase of the 555 property. Now you're at plus 4.3 million.

[49:33] And we received that emergency from that emergency bridge loan program.

[49:39] Uh we received

[49:43] I'm drawing a blank on on how much we got. I believe it was 3.

[49:54] Pulling that up now. Give me one second.

[50:03] 3 million48,500.

[50:07] So, if I add back 3,148 um 5,3148500,

[50:16] I'm at 1.2 million ahead. So, what did I just do? I took basically

[50:22] our our our results thus far year to date in the general fund across all

[50:27] departments, all of our revenues, taxes, charges for services, everything, minus

[50:32] all of our expenses in the general fund. and we were at a $13 million deficit.

[50:38] Why were we at a $13 million deficit? Well, we spent $18.12 million on buying

[50:42] a property, but then we also received $348

[50:49] million resulting from the hurricane damage um when you all approved this

[50:55] emergency bridge loan program, which is great for us, right? No repayment terms,

[50:59] no interest acrewing, keep the money, pay us back over 10 years. maybe they

[51:04] won't even make us pay it back. Um, so you factor in taking those two rec those

[51:09] two reconciling items into account, you're at about a one $1.2 million on

[51:14] the profit side. Now, what I want to see is the general fund operating at at

[51:20] around break even. Um, and so where we're at then in 2027, we

[51:28] are at about a a 3 million or so. um deficit budgetarily, right? Budgetarily

[51:37] a deficit and and most of that's just personnel costs. Um there's not a whole

[51:42] lot of capital in the general fund that we're um that we're budgeting for. So a

[51:48] lot of just operating expenses exceeding our budgeted revenues. Um but like I

[51:53] said, actual results typically always fall in less than

[51:58] budget. and then so we'll see as as the actual plays out. But if you look at

[52:03] that and you're concerned, I totally understand. Um there's just not much to

[52:08] cut out of the general fund unless you want to cut um positions. Um

[52:19] so that's the that's the stark reality. Even with that budgeted 3 million

[52:22] deficit, we're still at 1.7, you know, million remaining of of budgeted fund

[52:29] balance. If if actual plays out exactly the way budget does.

[52:35] So again, I'm not I'm not sounding alarm bells like, okay, we got 17 million

[52:40] budget revenue, 20.6 budget expenses. Um because I know our our actuals always

[52:46] come in lower. We budget very conservatively on health insurance. Um,

[52:50] so our actual health insurance costs are always typically lower than budgeted. We

[52:54] have vacant positions that don't get filled. So invariably we don't incur all

[52:59] the costs that we budget in the general fund. Nevertheless, I always like to

[53:03] budget actual revenues to be at least somewhat in line with expenses. So I

[53:07] just want to keep an eye on that. Um, nothing I want to sound the alarm bells.

[53:11] Um, but we want we want budgeted inflows and the general fund to be at least

[53:17] somewhat in line with budget outflows.

[53:22] Okay, moving on. Impact fee fund.

[53:27] And remember, there used to not be a parking fund. We

[53:31] used to have parking parking all parking revenues in the general fund. So, if I

[53:34] just did that, general fund would look a lot different. Instead, and I'm going to

[53:38] get to that at the end. Well, geez, we also have two very profitable

[53:42] uh operations at marina and parking that if we just said, well, let's just put

[53:46] all the revenue Oops, excuse me. In the general fund, then we wouldn't be seeing

[53:50] a three, we would have 3 million or so higher of revenues and we would show um

[53:55] even budgeted profit in the general fund. So, the sky is not falling. I just

[53:58] want to I'm just presenting factual numbers here to you of actual results as

[54:02] well as what we're budgeting next year on a fund by fund basis so you can see

[54:06] what our budget reserves are at the end of the next year. I just think this is a

[54:10] very helpful table to kind of go through this fund by fund

[54:15] impact fee fund. We just keep increasing our our reserves and impact fees in the

[54:19] impact fee fund. So this is one that we can if the project qualifies we can

[54:24] designate it. We don't have any budgeted expenses in the impact fee fund. But

[54:28] that's not to say we cannot spend out of the impact fee fund. We would just need

[54:31] to put forth in a budget amendment to you all to say we've got a great

[54:34] eligible project that we want to pay with impact fee dollars. Um whether

[54:39] that's a a future um recreation project and close a basketball court or um

[54:46] anything that can be um that would apply that um based on the statutory

[54:52] requirements on how we can spend impact fees. We've got money there to the point

[54:57] where it's getting to about 1.4 million of of available funding. So that's not

[55:01] pocket change. >> Andrew, um yeah, the impact fee fund is

[55:06] that because I know there's always impact fees for water and sewer and

[55:12] water and sewer we don't own. County does. So that portion of the impact fees

[55:19] we still collect, but then we have to pass it on to Penelis County.

[55:24] So the impact fee fund that we have is basically the net

[55:30] amount that is paid to us. Is that correct?

[55:36] » Yeah. To a degree, yes. So we have uh three types of impact fees. And Marcy,

[55:41] you know better than this, so if I misspe, throw something at me. Uh we

[55:45] have a a public safety impact fee, a recreation impact fee, and a

[55:48] transportation impact fee. That was uh only within the last I think three to

[55:54] four years when we put forth an impact fee ordinance that the commission at the

[55:59] time approved and so there's a calculation methodology to that. What

[56:04] has been under scrutiny more recently that we rescended was the transportation

[56:08] impact fee the county already charges and within that transportation impact

[56:12] fee there's a penelis county portion and a city madiraa beach portion and then we

[56:16] were charging another transportation impact fee on top of that. So, um I

[56:22] believe that that transportation impact fee, um we're no longer charging, but

[56:28] the county when we are, we do have to send the county that portion that the

[56:33] the county's portion of that that belongs to them. We do that annually in

[56:36] October every year. That's report that as a liability in our in our accounting

[56:42] system. So, we know this is not a revenue, this is a liability. But all

[56:45] the other impact fees that we collect, recreation, public safety, and then the

[56:49] transportation related impact fee that we can keep, um, that is available, uh,

[56:53] for the city to spend. >> Yeah.

[56:55] » And that's that number I showed you is the true revenue.

[57:04] » Okay. So then even better, again, we have capital needs in the future. What

[57:08] are funding sources? Impact fee fund definitely is a funding source. A couple

[57:12] years ago, it wasn't as much because we're just collecting, you know, a few

[57:14] hundred,000, but now it's it's adding up to where we've got budgeted about 1.4

[57:18] million. Another one that we have budgeted rather aggressively in the

[57:23] past, but never really it's have spent as much as we've uh planned has been the

[57:29] local option sales tax fund. That's like the penelli penny for panelis. So, you

[57:33] can see that fund balance, that actual fund balance is 3.2 2 million as of

[57:39] fiscal year ended September 30, 2025. That's that's not projected. That is

[57:44] actual remaining fund balance. Assets minus liabilities.

[57:49] Uh and then we've got revenues in 2026. That's the discretionary sir tax that

[57:57] penalty penny for penalis money that we do collect. I believe we get that on a

[58:01] monthly basis. Um, and then we've got some small

[58:06] capital related expenses, 182,000 year to date in the lost fund.

[58:13] Then we've got budgeted next year for 27,765.

[58:18] And we did not have a long laundry list of projects. We just have $100,000

[58:23] budgeted in 27 for expenses. So now we're at budgeted of almost $4.4 $4

[58:28] million available for future projects in the lost fund

[58:34] of which many or most capital projects um do apply. So there are some minor

[58:40] restrictions um but for the most part infrastructure improvements, government

[58:44] building improvements, public safety vehicles, those are the main things that

[58:48] we can spend with lost fund dollars. And so that fund balance has been increasing

[58:52] over time. >> Andrew, I'm sorry. I I was trying to

[58:56] follow you and I I Could you tell me what

[58:59] » page I'm on? >> Yeah, sorry.

[59:01] » No problem. Page 60 of your uh packet >> 60 of your packet, 58 of your um

[59:07] » Thank you. Sorry. >> of your document.

[59:10] » So, this is this fund budget year fund balance. I really like this. It shows

[59:14] you where we were historically. How much money do we have in each of these funds?

[59:18] You can kind of say that's kind of your fund balance like how much you know

[59:22] reserves um you know what's available in it. You know what's available in it is

[59:29] whatever the balance was last year plus revenues minus expenses this year and

[59:33] revenues minus expenses each year after that.

[59:37] So those are those are positive attributes and those capital

[59:43] intensive funds impact fee fund and the lost fund that we do keep increasing our

[59:48] available fund balance in those funds. Then we've got Marina fund another big

[59:55] winner thanks to Krabby and his team. Uh that's been increasing 4.5 million.

[1:00:02] That's where uh fund balance net position was in 2025 actual audit

[1:00:07] results and then we just keep the marina fund

[1:00:12] keeps making money. So 1.5 million yeartoate actual revenues 820,000

[1:00:17] yeartoate as of a couple weeks ago expenses and then we're budgeting for

[1:00:22] more profit. We're budgeting 1.725 million of revenues and 1.379 million of

[1:00:28] expenses. Why are those we expenses so high? We do

[1:00:32] have I believe the budgeted um capital project. We'll dig into that in the

[1:00:36] capital improvement plan. I think that's for the um the seaw wall or the the the

[1:00:41] docks uh the city hall docks. Yeah. So now we're at 5.5 million um available

[1:00:49] in the marina fund. Then uh then parking fund again um

[1:00:57] that's been that the parking fund only began its existence I think three years

[1:01:02] ago in 2022 or three. It was all a part of the general fund. Then we pulled it

[1:01:06] out to to uh report it separately in its own fund. 5 million was available fund

[1:01:13] balance. Then we're adding 3.2 million revenues to 1.5 expenses. That's actual

[1:01:18] year-to- date results. 3 point almost 3.2 2 3.3 million in um projected

[1:01:25] revenues, which looks conservative since we're already at 3.2 million actual in

[1:01:31] 26. So, barring another unforeseen storm or incident that drives people away from

[1:01:36] the city of Mader Beach, um that's probably a very um conservative estimate

[1:01:42] on the revenues for 2027. And then only one and then 1.8 8 million

[1:01:49] of expenses um out of the parking fund. So now we're at 8 million in fund

[1:01:55] balance net position in the parking fund.

[1:02:00] So a 3 million deficit in the general fund feels a lot better when I see those

[1:02:05] results in the parking fund, the marina fund of which those are not restricted

[1:02:09] monies that are that we have to restrict. I mean, those can be um

[1:02:15] transferred to the general fund to help to help offset general fund expenses,

[1:02:20] but ideally, we want to build those marina and parking fund reserves because

[1:02:25] we've got an ambitious long-term capital improvement plan with various

[1:02:31] projects that those funds can help um support ongoing debt service payments in

[1:02:37] the future if if and when we issue debt for for various development efforts.

[1:02:42] So money is there to that extent certainly

[1:02:46] in those two funds. And then the last two um sanitation

[1:02:52] fund. So again sanitation fund um since we're

[1:02:59] charging charging residents we don't want to overcharge to help fund

[1:03:03] non-sanitation related expenses. Um that is intended to be a bit of a break even

[1:03:09] analysis. We've actually been building up our reserves in the sanitation fund

[1:03:13] more recently when we had enacted a fee increase in I think fiscal year 22 um

[1:03:20] because we were operating at break even or a deficit um previously. So we're at

[1:03:26] 2.8 million actual net position and then revenues and expenses 1.6 and 1.4 so

[1:03:35] far. Um which at 1.4 4 includes any capital related out outlay. And then in

[1:03:41] 27, we've got 2 million revenues and 2.4 million expenses. But that 2.4 and we

[1:03:47] can dig into the sanitation uh revenue and expense detail if you

[1:03:51] like, but I we'll look into what what comprises that number out of capital. So

[1:03:57] there are some vehicle replacements, I believe, that that um contribute to that

[1:04:02] 2.4 million expenses. But overall, we're we've been trending nicely in sanitation

[1:04:06] fund and continue to do so. And then storm water fund, 5.4 million

[1:04:13] ending fund balance. Um, a lot of that is just is kind of your your your uh

[1:04:21] project costs that were capitalized. So that's not like true cash. That's that's

[1:04:27] capitalized project costs. um 26 revenues so far, 578 million thousand,

[1:04:35] excuse me, compared to 4.3 million of actual expenses. And that's a lot of the

[1:04:39] the storm water projects we've been working on. And so again, this one is is

[1:04:44] more of the same 5.7 million budget and revenues. And a lot of that revenue

[1:04:49] uptick is is um as uh grant funded revenues. So getting different funding

[1:04:57] sources for some of our project our storm water projects we're anticipating

[1:05:01] in fiscal year 27 and then there's your 7.5 million in expenses. Most of that is

[1:05:07] your project cost that we'll cover in capital.

[1:05:12] » Andrew question um as far as consultant fees how does that

[1:05:18] fit in this budget? How do you designate consultant fees that we pay for design

[1:05:25] of let's say storm water? >> Sure. So it depends on the nature of the

[1:05:30] consultant fee. If it's like to do a study to in um evaluate options or

[1:05:36] alternatives that's typically an operating expense that we would put in

[1:05:39] like professional services because it's not tied to a specific project like a

[1:05:43] design or engineering plan. It's more like an evaluation. Um it's so it's not

[1:05:49] capital, it's a piece of it's a document. So it's not a fixed asset and

[1:05:54] it's not tied to a specific project versus design and engineering work on a

[1:05:59] particular project. So that's going to be like an infrastructure asset or a

[1:06:03] building improvement asset. Um that will that will be would be capitalized and

[1:06:10] those particular consulting costs would be a part of if you look at our account

[1:06:16] your account level detail would be a part of capital improvement. And so

[1:06:21] you'd see that in your in your capital costs as part of your capital

[1:06:24] improvement plan. And we would embed those engineer professional engineer

[1:06:29] architectural design work. That's all part of the the the capital project

[1:06:34] » and the grants that we receive is somehow associated with that.

[1:06:38] » Yeah. And very important to know we don't we wouldn't offset. So we would

[1:06:42] never reduce our expenses. We would gross up whatever that grant revenue is.

[1:06:46] That's your revenues um compared to the the uh expenses and those would be

[1:06:51] displayed separately. And that's a good point. Why don't we actually go to this

[1:06:54] the storm water fund and we can look at that

[1:06:58] just real quick. And that's going to be on page

[1:07:03] 57 of your packet 55 of your book.

[1:07:20] So um you can see some of the the the non-recurring

[1:07:27] revenues. So the first two lines, one storm water grant, the next Panelis is

[1:07:30] Penelis County. So I imagine the Penllis County one for 1.485 million is like a

[1:07:35] JPA joint participation agreement that we have with Penllis County. Megan Web

[1:07:41] could share with the details of the actual project for that. So that's their

[1:07:44] involvement um in that for you know whatever reason and we would get the we

[1:07:50] would get we would invoice Panelis County for their share of the project

[1:07:54] work and we would absorb the entire project cost pay those invoices and all

[1:07:59] those would go to a particular that capital improvement we call it in the

[1:08:04] storm water fund most of that goes to what's called the drainage and roadway

[1:08:07] improvement capital um related expense that's on page 5 uh8 of your

[1:08:17] packet. Oh, sorry. It's at the way end there. Page 59 of your packet. Page 57

[1:08:23] of the book. You can see an expense here called

[1:08:28] 404920056305 drainage and roadway improvement.

[1:08:34] And that's where we generally um budget our capital related expenses in that one

[1:08:40] in that one account. And then when you say, "Well, geez, how

[1:08:45] does if it all just goes to that account, how do we know how much we're

[1:08:48] spending on area 3 versus area 5 versus area 7?" We have a separate projects and

[1:08:53] grants module in our ERP, in our accounting system that we tag those

[1:08:58] transactions that hit that GL account and say, "Hey, it also relates to this

[1:09:02] project." So, we can run an annual or a multi-year project report. And so we can

[1:09:07] see by project. Hey, show me for area three. How much have we spent in 2024,

[1:09:12] 2025, 2026, how much revenue have we generated on a on a project by project

[1:09:18] basis, but we keep the accounting simple uh for budgeting purposes. This that one

[1:09:24] account is inclusive of all of those project costs.

[1:09:29] I just want to bring up at this time originally when we were talking this I

[1:09:33] did not want to look at raising the storm water storm water prices because I

[1:09:40] was not going to come into office and say okay well yes let's raise this but I

[1:09:45] got an article and I just want to you know from the paper on August 6 that

[1:09:51] city sewer bills in St. beat Beach Beach could jump 64%. And I thought, well, big

[1:09:57] deal. But yet what they're paying right now is $11059 a month and it's going to

[1:10:03] 128. So for us going from 10 to $20 is minimal. I mean, you know, so seeing all

[1:10:11] this information, um, you know, it it's Madera Beach is

[1:10:16] still very cheap for their storm water and let's kind of get back in line of

[1:10:21] getting this back in place.

[1:10:28] Yeah, we certainly in incur incur costs in our storm water fund and

[1:10:33] storm water cannot be neglected given just the the basic geography of

[1:10:40] where we're at. So >> most of the increase in the funds are so

[1:10:45] that we can pay the debt service and take that out of a debt service that the

[1:10:50] general fund has been paying for. Is that correct?

[1:10:55] It helps and even with that we went through the math together previously

[1:10:59] with our existing debt service and our and our operating costs which included

[1:11:03] personnel and maintenance on the storm drains and everything irrespective of

[1:11:06] capital. We're still not projected to be quite there. I'll be curious when this

[1:11:10] when it the fee increase goes into effect and and run analysis as we go

[1:11:15] through fiscal year 27 actual results just how close we are. But we're not

[1:11:20] we're getting better. So we're certainly closer to that. Um, but we're not quite

[1:11:26] covering all of our operating and debt service costs even with this increase.

[1:11:30] More reason I feel it's necessary. >> Oh, please join.

[1:11:39] » You are doing such a great job. >> I mean, I need a break. So, thank you.

[1:11:43] » Good afternoon, everyone. I think um, Commissioner Kavahi, I think what you

[1:11:46] were asking about was the professional services in the storm water. That

[1:11:51] $235,000 is for the VA and the AP grant that we

[1:11:55] received from FT. So, as Andrew stated, the revenue is shown on the revenue and

[1:12:03] outflow, but then we have to show the cost

[1:12:06] on on the professional services side. So, we have $250,000 budgeted for 26.

[1:12:13] The whole project was $485,000 which is a complete 100% reimbursement

[1:12:18] but it's going to flow into 27. >> So when you budget

[1:12:25] for a professional fee for a professional services

[1:12:30] all the consultants know what the budget is, right?

[1:12:34] » So we received a full 100% grant for this. So I think we're talking about two

[1:12:39] separate things. It depends on the project.

[1:12:41] Yeah,

[1:12:45] the the only concern I have is I mean I understand what you just said, but one

[1:12:50] of my concerns with budgeting certain professional fees is that all the

[1:12:57] consultants are going to look at the budget. and say, "Oh, you know, they've

[1:13:01] budgeted this much money for these services, so let's just reduce our fees

[1:13:06] by 10% and, you know, 10% less than the budget and um propose that to you and,

[1:13:15] you know, there's just just really not a uh

[1:13:21] in my opinion, not the best way to to get competitive fees,

[1:13:27] » professional services, and I can speak only for my department. Um, typically in

[1:13:31] that budget, I have just money just in case I need engineering on a failed

[1:13:36] storm drain or something along those lines. So, often times I don't 100% have

[1:13:42] a set budget for design fees. Um, it's built in within a whole entire project.

[1:13:48] So for we talked about the pocket parks and and the Bokea neighborhood. I did

[1:13:54] not have a plan to have a consultant engineering fee for that. That just came

[1:14:00] out of my complete overall budget. >> Yeah. Small things I don't worry about.

[1:14:03] It's the big big ticketed items that I worry about like couple hundred,000 or

[1:14:08] half or whatever for you know whatever project. That's that's what I am

[1:14:13] concerned with. So >> I think where the challenge comes in in

[1:14:17] that, if I may, is that we are a government agency and so we have to be

[1:14:23] transparent and everything has to be in the sunshine. So before Megan can take

[1:14:27] something out to bid, she has to bring it to us and she has to ask for

[1:14:31] approval. So there's really not a way to not tell it. However, um I also don't

[1:14:40] think that that would be my experience just thinking about bids in general that

[1:14:46] we've gotten and they come in all over the place.

[1:14:50] » The Valve grant is a great we they asked during the bid process before the bids

[1:14:56] were due what my budget was. My budget was $200,000. I received one bid out of

[1:15:04] seven, I believe, that was within $6,000 of my my project. Everything else was

[1:15:10] well over $100,000 more. So, I think sometimes people do ask because

[1:15:15] obviously if we don't have the budget for it, then they're not going to waste

[1:15:19] their time nor waste our time or even bid because that process is quite

[1:15:25] lengthy. So it it totally is dependent on the project on what you're looking to

[1:15:30] do. I understand what you're saying, >> but it is hard to not have a budget if

[1:15:36] they ask for it. >> Well, can that be a part of let's say

[1:15:39] general fund budget? In other words, can we not draw consultant fees out of a

[1:15:48] general fund fund budget

[1:15:53] and not have to say, "All right, we're going to be building this road.

[1:15:59] Let's budget $300,000 for the consultant fees."

[1:16:04] and then let everybody know that we're ready to spend $300,000 on the

[1:16:09] consultant fees. Um if if we can just say, "All right, let's just put this

[1:16:14] much money in the budget and then in in a general general fund and then let the

[1:16:21] consultants have that competitive fee, whatever that may be, to present to us."

[1:16:28] Are you are you talking about the actual construction cost? Are you look No,

[1:16:36] you're talking about just the consultants. Well, consultant uh

[1:16:40] contracts are not based upon price. They're based upon qualifications. Once

[1:16:47] you get that qualifications in and we select the top one, then we go into a

[1:16:52] negotiation for unit pricing. So what we would do is we would we would um

[1:16:58] negotiate what the you the rates are for the professionals. Once the rates of the

[1:17:03] professionals are then set, we go into an effort-based analysis. Meaning here's

[1:17:11] the five scope of work or five tasks we need you to do. I'll give us a price on

[1:17:16] that. Once we get to that price, we negotiate again. Maybe they have it too

[1:17:21] much in one area or not. So then we try to get down to where we feel is the best

[1:17:27] price. If we can't, we throw them out and we go to the next one.

[1:17:33] » But we also have contracts with many different consultants so that we do not

[1:17:38] have to go out to bid dependent on the size of the project. So same same

[1:17:44] process as Mike just stated, but we don't have to go out to bid again. We

[1:17:48] already have them under contract. We also know what their disciplines are.

[1:17:52] Not all cons consulting firms specialize in transportation or specialize in road

[1:17:58] projects or or storm drain or or Marcy needs, you know, many different planning

[1:18:03] studies or whatever it may be. So, it's all there's a lot of different factors

[1:18:07] when it comes into selecting a consultant for a project. We have many

[1:18:13] different projects. >> I think I know exactly what you're

[1:18:16] talking about. having the public know exactly how much money we are and I

[1:18:20] think it would be a great idea to discuss it but not at this point. I

[1:18:24] mean, you know, I think like you say, all of our projects if we have a fund

[1:18:29] and it maybe say put a million dollars in for work related to projects that

[1:18:35] need to be come up and that would be I think a different discussion. You know

[1:18:39] that Yeah. I because just like uh Crystal Island project, we said we got

[1:18:44] $15 million for that project. Well, of course, all your bids are going to be

[1:18:48] coming in around $15 million. So that's what I believe you're trying to

[1:18:55] keep. But but it's like we still have to be

[1:18:59] open book. So we have Yes. So >> we have a budget.

[1:19:04] » It's listed. Everyone asks. We can't not give them the information that they

[1:19:09] asked for. >> And this is because this is becoming a

[1:19:13] greater conversation today. We're talking about budgets. If you want to

[1:19:17] drill down on how we go about getting a bid, that's a completely different

[1:19:23] conversation than today because that would be a conversation when we get

[1:19:27] ready to take something out to bid to try to scrutinize it. Today, we just

[1:19:30] need to try to get through the budget because the budget's the budget. How

[1:19:35] they bid is is not budgetary related. >> Yeah. Thank you. No, it definitely will

[1:19:42] be eventually, but I think you know down the line and where potentially a

[1:19:47] workshop or Yeah. How not today. Yeah. If we can indeed kind of keep the money

[1:19:53] that we have closer to the >> No, I I wasn't trying to solve problems

[1:19:56] today. I was just trying to really understand, you know, the mechanism

[1:20:02] as to how we get competitive. So, can I recommend that you make an appointment

[1:20:09] to sit with Megan and the city manager and have that discussion because you

[1:20:14] could really dig into a discussion with the two of them and I think that would

[1:20:17] be helpful for you and for them. >> Yeah, more than happy to.

[1:20:20] » Okay. >> There's there's state state statutes

[1:20:23] that we have to abide by when you start to to procure uh professional services

[1:20:29] and that's really what is running it. >> Yeah.

[1:20:33] » Yeah. >> Thank you. Any

[1:20:37] other questions on anything I covered? If not, I'm just going to finish with

[1:20:40] our five-year capital improvement plan. We can just walk through that uh real

[1:20:44] quick and then go ahead.

[1:20:49] » Um it just I probably just need to be explained in the on page in the P not

[1:20:54] the packet the the documents page 58. uh going into 59 maybe the budget year

[1:21:03] fund balance uh we have the 20 27 ending budgeted

[1:21:07] fund balances for those different departments but then when I look down at

[1:21:11] the narrative uh there's there's a couple that aren't

[1:21:16] that don't line up that they're not the same like on page 58 shows the general

[1:21:21] fund has a million737904 but in the narrative it says million7282

[1:21:29] 288. Uh, and is that supposed to be the same number? And the same thing with the

[1:21:34] marina fund, parking fund, and building fund. They have discrepancies in the

[1:21:40] narrative compared to the chart. Am I meeting am I

[1:21:44] reading that wrong? I must just >> um So, let's talk. So, general fund, it

[1:21:49] says the FY27 budgeted ending fund balance declines from the FY25 ending

[1:21:54] balance of 18,987 389. that sentence that that paragraph.

[1:21:59] » Yes. >> Okay. So, the 18987 389

[1:22:04] is the 2025 fund balance. >> Wait, sorry. The 18

[1:22:10] I'm not I'm not I'm not I'm not saying I don't think we're on the same place.

[1:22:14] Okay. Yeah. The 18. It's the

[1:22:20] » You look at it. >> I Yeah, I've got it. I got it right

[1:22:23] here. So in in the chart get the G is it did I say general fund general fund uh

[1:22:32] the 2027 ending budgeted fund balance. >> Mhm.

[1:22:36] » Says it's 1 1,737904.

[1:22:42] Am I reading? Is it right? >> No. Yeah. But then in the narrative

[1:22:48] which is the next page it says significant changes general fund uh 1

[1:22:55] million728 288. It's close here.

[1:23:00] » So your question that $6,000 difference that could be an actual result that

[1:23:04] maybe came in. I had the narrative there and then it didn't get updated for

[1:23:07] something. I can check on that. >> Oh okay. So it's all right. Would you

[1:23:11] would you check also marina fund, parking fund and building fund? bills

[1:23:16] have the other ones line up but I just was desperately trying

[1:23:22] » the 1 million in the narrative the 1 million728

[1:23:26] 288 compared to the 1,737

[1:23:33] » 904 so about 9,000 that $9,000 difference

[1:23:37] » and then Marina is 5 there's a big one in the marina 5 million 590 544 and in

[1:23:43] the narrative it says 8 million in uh 804714.

[1:23:50] So that's a bigger >> Yep. I'll check on that.

[1:23:53] » And I just was noticing as we're going

[1:23:57] through here, parking fund is uh 8,94 387 and then it's just less of a

[1:24:04] difference there. 8,93 767 and same with the building fund. Not

[1:24:10] that much difference. The biggest one is the marina. And I just those should be

[1:24:14] the same, shouldn't they? >> Yeah, in theory. Yes. So I might have

[1:24:17] rerun the because the analysis the act the 26 actuals are continually changing.

[1:24:23] » Okay. All right. >> So maybe the last time I updated that

[1:24:26] table the significant changes narrative didn't update.

[1:24:31] » I got you. Okay. I just I'm struggling to hang on here. So I want to make sure

[1:24:34] I understand. >> That's I love I love the attention to

[1:24:36] detail. I'm proud of you. >> Thank you.

[1:24:43] I've got >> I've got one little one.

[1:24:46] » Okay. >> The backend parking fee. Did we get rid

[1:24:49] of that? >> Yes, we did.

[1:24:54] » Okay. >> That is I mean,

[1:24:56] » as I see all of this in here, you know, it's it's just like we have it, then we

[1:25:01] lose it, and then >> But that's not in the budget. That's in

[1:25:04] the fee schedule. >> Yeah.

[1:25:05] » But that's part of the budget. >> We did not budget for back in back-end

[1:25:09] parking. I think the parking manager could attest. It's only if we see Chuck

[1:25:14] Dylan's car backed in, we're going to take it.

[1:25:16] » All All others are exempt.

[1:25:22] » Yeah, we don't we don't budget for uh fines.

[1:25:30] » But isn't that in the fee schedule? The fee schedule, there is a fine in that

[1:25:36] fee schedule. But when we look at revenue, we're not estimating what the

[1:25:43] revenue from uh tickets are.

[1:25:48] » Okay. We're just take Yeah, we have if you look at the parking fund,

[1:25:56] we have we're just looking at it's on page 49 of the book 51 of the packet

[1:26:04] just all the revenues and the parking. We just have one line item called

[1:26:07] parking fines that includes a variety of different things and we basically budget

[1:26:11] that just based on looking at trends and we can might take in effect take into

[1:26:15] account some increases around that but we just look at you can see it was

[1:26:19] budgeted 550,000 in um 2026

[1:26:26] and budget now at 525,000. So modestly in line with what we had in in 206

[1:26:34] budget 206 actual year to date. Let's take a look.

[1:26:41] Let's pull that up.

[1:26:44] See how hard Jamal and his team have been working.

[1:26:49] » That is not I don't think that that is the proper verbiage we should be using.

[1:26:56] Strike that from the record. >> That's a terrible mindset in my view.

[1:27:02] » Strike that from the record. Let's see the results of the infractions in fiscal

[1:27:07] year 2026 thus far. And that is at $672,287

[1:27:15] year to date in 26. So, I'd say 525,000 as an estimate for budget revenue in 27

[1:27:24] is conservative to say the least. >> So, if our parking fines keep going up,

[1:27:29] then we might need to spend some time in discussion on how to better educate our

[1:27:34] visitors before we're writing so many tickets. Because to see an increase of

[1:27:39] that large of a number in parking fines to me says, are you really a friendly

[1:27:46] community or are you a community that's looking to write a ticket the minute I

[1:27:50] walk away from my car or if I'm 10 minutes late to my car? So, I think that

[1:27:54] is definitely a discussion for a workshop in the future to decide what's

[1:27:59] more important to us. >> Yep.

[1:28:06] » Perfect. Any other questions on anything we've covered or am I you would you

[1:28:09] going to good with me wrapping up on capital?

[1:28:13] Perfect. And we will I will look at those good catch on the um fluctuation

[1:28:19] analysis and I'll I'll look at those numbers for sure.

[1:28:24] Okay. Then capital is going to be on page

[1:28:30] um shoot I just had it. Okay. Okay. It's on

[1:28:35] page 79 of the book, 81 of your packet.

[1:28:50] So, we it's just starts with a a the five-year capital improvement plan. Just

[1:28:55] some narrative overview of the program. What is a capital expenditure? We talked

[1:28:59] about that. an an any asset with an initial cost of $5,000 or more and

[1:29:06] useful life of two or more years. It could be a physical piece of equipment

[1:29:12] or vehicle or it could be a infrastructure improvement to an

[1:29:17] existing asset. And then just gives you some narrative

[1:29:22] highlights. Storm water infrastructure, marine and waterfront, we talked about

[1:29:26] that. City Hall dock construction budget $400,000 through the Marina Fund will

[1:29:33] improve waterfront access and support the city's marine operations and public

[1:29:36] use of the city hall waterfront.

[1:29:43] Then sanitation. We talked about some of the costs that we saw in the fund

[1:29:46] balance net position analysis for sanitation. So we've got 400,000 for

[1:29:51] replacement of unit 26, the 2020 Kenworth T880 solid waste vehicle.

[1:29:57] Maintaining a reliable fleet is essential to un uninterrupted solid

[1:30:01] waste collection service for residents. Then we do some highlights of future

[1:30:07] fiscal years 28, 29, 30, and 31. So when you do highlights, Andrew, um

[1:30:18] that's just for somebody to read because the 2028 highlights are not that's not

[1:30:24] something we're going to do. Um we talked about that in a previous meeting

[1:30:30] because until we do something with parking, we're not building anything

[1:30:34] else at Rock Park. It would be there' just be no way. They're struggling now

[1:30:38] with parking for the events that they have. I'm only saying that because I

[1:30:43] don't want anybody to say that we agreed to do what these highlights are for 2028

[1:30:49] because I think they're very inaccurate. >> We can go through those before the um

[1:30:54] » final >> before the final.

[1:30:56] » I think we should I think that >> we'll do a better idea. Yeah, I think it

[1:31:00] should align more with what we discussed in the strategic planning um for for

[1:31:07] anyone who's reading it to have a vision of what the commission is thinking and

[1:31:11] what the city's working towards. >> Yes. And it's also a good place if we're

[1:31:16] looking at grants. We need to have those in our future. Uh

[1:31:22] » I'm not saying I want it to go away because I know that if we were going to

[1:31:26] do something like this, if we were going to build these projects, you would want

[1:31:30] to have them so that they could be shown to the grant, you know, that we were

[1:31:34] applying for that we've we've been talking about it. But there's no way

[1:31:38] that we would start this in 2028 because we need parking to be addressed prior to

[1:31:43] being able to start the idea of building um a new structure. And if something ma

[1:31:49] miraculous happened and we were able to build a parking garage or or or

[1:31:53] reimagine parking or whatever we do for parking at Rock Park for, you know, we

[1:31:59] could do that in the next year and then you could do that in 2028. That'd be

[1:32:03] fantastic. But it seems highly unlikely that we would be able to fund that.

[1:32:09] » And it says that it was going to be funded from the loss fund. And the loss

[1:32:12] fund is going to not have any money in it in 28.

[1:32:16] » It'll be broke. >> Yeah. We'll we'll go through those

[1:32:19] before the next meeting. And then on the next page 81 of the

[1:32:25] book, 83 of the packet, there could be questions either from you

[1:32:31] all or from residents or both like, well, we bought the $18 million

[1:32:36] property. What why is or no development plans? And so we have a specific

[1:32:40] paragraph that addresses that that 555 avenue vacant waterfront property. I'll

[1:32:46] just read it. City's 5-year capital improvement plan does not include any

[1:32:48] capital expenditures relating to the development of the 4.6 6 acre vacant

[1:32:53] waterfront property acquired at 555th Avenue. City is still in the early

[1:32:58] stages of its planning process and has not yet developed concrete conceptual

[1:33:01] design plans or realistic estimate of development costs. Given the scope and

[1:33:06] significance of the property, it would be premature to budget capital

[1:33:09] expenditures at this time without a well- definfined and costed plan. Should

[1:33:13] any capital expenditures relating to the development of this property become

[1:33:16] necessary during FY2027, a budget amendment can be formally

[1:33:21] approved and adopted by the board of commissioners at that time.

[1:33:25] Any concerns with that disclaimer?

[1:33:29] Perfect. Okay. And then this just kind of goes through

[1:33:35] your your capital year improvement plan schedule.

[1:33:43] with 24 actual, 25 actual, 27 budget, 26 budget, current year CIP by fund. You

[1:33:52] see very light except for the storm water on a fund by fund basis. Just a

[1:33:58] couple, you know, projects here and there and then mostly vehicle and

[1:34:02] equipment purchases. And then the five-year capital plan

[1:34:07] shows the fund and then the project and then what year it's hitting. And

[1:34:13] obviously there's nothing of form as we discussed formally budgeted in 2029

[1:34:17] 30331. That's just plan that doesn't it's not binding or in any way or you're

[1:34:23] not appropriating money for those future fiscal years. That's done annually

[1:34:27] through the adoption of the budget. So that's justformational only. But to the

[1:34:30] city manager's point, we can look at some projects that

[1:34:35] at least if they're under question or scrutiny, then we can remove to dis, you

[1:34:41] know, remove any potential confusion or or

[1:34:46] um concern from the public.

[1:34:53] And I we've been through this before. we had a a a capital specific

[1:34:59] budget workshop, but I know it's been a few months. So, um

[1:35:04] just wanted you all to be able to see that again.

[1:35:13] And that's all I have officially planned is if there's any questions on capital,

[1:35:17] I'll take them or any other section of the document. I know, like I said, we've

[1:35:21] got a lot of different a lot of added material on

[1:35:27] fund descriptions, strategic priorities, um, community profile,

[1:35:33] all of our main policies, all our financial policies,

[1:35:38] what's a budget balance, our purchasing ordinance, our investment policy, cash

[1:35:42] receiping, handling policy, capital assets policy,

[1:35:46] grant management policy, our budget process, goes through all the different

[1:35:51] workshops and what we covered. Um and then the the um the budget calendar with

[1:35:58] the two public um public hearings

[1:36:03] detail on FTEES, personnel costs, and then a whole section on department

[1:36:09] program goals and objectives broken out by departments. all your general fund

[1:36:14] departments showing accomplishments, goals, and

[1:36:17] objectives. A whole section on that.

[1:36:25] So, happy reading on on something reading something other than numbers.

[1:36:29] We've got a lot of narrative descriptions on

[1:36:32] things as well and even performance measures.

[1:36:42] Commissioners, do you have any questions or comments?

[1:36:46] » Very well put together, nicely, very detailed. Thank you.

[1:36:50] » Thank you. >> I've got one. I believe we've got two

[1:36:55] more. So, are we going to do it be two more discussions on this and the final

[1:37:01] votes going to be September 18th, I believe.

[1:37:05] So that'll be Yeah, let's actually go to that page just so you can see

[1:37:10] that's going to be on page I just passed it. The the budget process is on page 97

[1:37:16] of the book 99 of the packet. This just gives you an overview of how

[1:37:22] the budget works. What's the process? Gives you a budget calendar. So those

[1:37:26] are your two dates.

[1:37:30] Clara, hopefully I'm not inaccurate on that. We got September 9, 2026 at 5:45

[1:37:35] p.m. >> Correct.

[1:37:37] » And then September 18, 2026 at 5:05 p.m. Those will be the two um

[1:37:42] » budget meetings, >> the two special meetings where you'll

[1:37:45] approve the adoption of the millage rate at 2.75 mills, the same it's been for

[1:37:49] the last 6 plus years, and then the approval of this uh tenative budget

[1:37:54] book, and then the final will be the adopted budget book.

[1:37:58] I expect that to be um a very uneventful evening that

[1:38:03] » right after >> it's just going to be a quick two to

[1:38:06] five minutes but please so if there's anything that you might suggest you want

[1:38:10] to bring up concerns >> I'm trying to clarify that because

[1:38:14] everybody just got their tax statements or if they haven't gotten them they

[1:38:19] should be getting them so the millage rate is not planning on changing

[1:38:24] » not planning on changing correct if we wanted to increase the miller rate at

[1:38:28] this time. It would be a huge administrative undertaking of resending

[1:38:32] out trim notices and that that's not good. Anyways, but

[1:38:36] » just some some comments I've I wrote down as we're going on. Appreci I I do

[1:38:42] like the narratives at the end of the charts. I respond I just respond a

[1:38:46] little better to words than numbers. I guess

[1:38:49] » the analysis. Yep. Nice. So, uh I I appreciate the uh

[1:38:55] that this budget is starting to look more normal with the exception of a

[1:38:59] couple of uh departments after the hurricane. We're looking at something

[1:39:03] that's uh normal operations somewhat. We're getting back to that. That was

[1:39:08] nice to see. And that we're acknowledging future risks rather than

[1:39:11] ignoring them, including the 555 property uh and the storm water. I I

[1:39:17] know we're putting a big push towards that, but that seems to be

[1:39:22] it seems to be a concern of the residents that we have long-term

[1:39:26] drainage and resilience. And I appreciate the the community

[1:39:31] conversation we've had over the last year uh that we reflects those

[1:39:35] conversations that we've had with the community. So overall, I I've see some

[1:39:39] positive things coming out of this report. So, thank you for your attention

[1:39:42] to all the detail.

[1:39:46] » Is that all, Andrew? >> Nothing further.

[1:39:50] » Then it is 3:39. We're adjourned.

August 26, 2026 BOC Budget Workshop Meeting 2pm

Transcript