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Good afternoon. Welcome to the board of
commissioners bud budget workshop number

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five. Today is Wednesday, August 26,
2026 and it is 2 p.m. City clerk, would

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you call the role, please?
>> Yes.

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» Mayor Brooks
>> here. Vice Mayor McGee

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» here.
>> Commissioner Tagarini

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» here.
>> Commissioner Dylan

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» here.
>> Commissioner Gavay

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» here.
>> All are present.

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» With no public in attendance, we will
move on to discussion items. Fiscal year

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2027 budget workshop number five. And I
will hand this over to our finance

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director.
>> Great. Thank you. Okay. Okay, this is

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our last workshop before our our uh
first reading of the approval of the

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millage rate and the and the proposed
budget book. And we'll do two readings

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in September.
So, this is the last workshop. So, if

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there's any concerns, questions, issues,
things we need to update or change, um

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now is the time um to voice those. This
is still a live document that is can

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certainly be subject to change if
there's anything that you um feel that

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needs amending. But this is the the the
tenative budget book. So the full

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deliverable, it's 163 page uh document.
We're going to go over every single page

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in great detail. Just kidding. I've got
just a few things. Uh and there's a lot

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of there's a lot of content here. And so
a lot of what we've presented thus far

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that I presented has been a lot of
numbers throwing numbers at you. here

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has a lot of narrative from our
strategic goals and objectives. Um

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reasons for changes in in bud in in
budget from one year to the next. Um a

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summary of our revenue sources and where
those come from and by fund. Uh our

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capital improvement plan, some narrative
around that. Just community statistics.

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We've got a lot of narrative in various
parts and sections of the the budget.

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It's a departure from previous year's
budget documents. There's what's called

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the uh GFOA distinguished budget award
present uh uh the GFOA distinguished

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budget award. Uh the GFO is the
government finance officers association.

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They we are uh annual what we call our
ACER our annual comprehensive financial

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report. That's our annual audited
financial statements. We present th that

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annually to the GFOA and they give us an
award for excellence um or certificate

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of achievement and excellence in
financial reporting. We've never

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submitted our budget because it never
qualified because it's got to have

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certain sections and and content. And so
this is the first year I said, "Well,

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let's prepare the budget book a little
bit differently this year." Um and in

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accordance with the GFO requirements. So
you'll see a lot at the top of various

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sections it'll say like GFO O2
department fund relationship because

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that's what it wants you to cover. Not
to say we're going to submit this for an

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award. We certainly could now now that
we're presenting a more GFO compliant

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budget book. So if you try to look at
the budget book last year and the budget

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book this year
the the the table of contents and the

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underlying content within is is
definitely different. But um I think

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this tells a good story and what I just
want to do is kind of focus on maybe

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certain certain areas where we just
really kind of get into the highlevel

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numbers and what they mean. And then um
so I've got kind of a prepared

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presentation for I don't know 30 45
minutes to an hour tops and then turn it

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over to you all if you all have any
specific areas that you want to cover in

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in greater depth. So, I figured we can
start with my presentation and walk you

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through certain pages that I want to
highlight and then at the end and

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certainly we'll go through dialogue and
do some Q&A as we talk through that and

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then at the end if there's any section
out of this 163page document that you

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want to dig into further um because I'm
sure you all read it cover to cover uh

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then we can certainly uh cover that uh
and if if there are none then this will

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adjourn early.
Okay. Okay. So, are we ready to explore

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then? Let's go to uh what I first just
want to start is let's look at just

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again the the the financial structure of
the city, its funds and its departments.

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So, that's in the department and fund
relationship section and that is on page

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25 of your packet which is page 23 of
the budget book.

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So this shows our our general fund and
all the uh departments within the

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general fund and then we go into the
other funds. And so if we just start

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with general fund, this just gives us a
quick overview of okay, what are all the

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departments that we have within the
general fund? Um what do they do? What

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are their goals and objectives? We've
got all that information and in um

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departmental goals and objectives
summary. Um, but if we're just focusing

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on that and all that's great reading to
understand like, okay, what are what are

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accomplishments of the community
development department and what are

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their initiatives, you know, going
forward. We have all that narrative

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explained throughout the uh within the
budget document. But if we just focus on

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the numbers here,
uh, let's look at general fund and the

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department. So, we're about 20,611,965.
That's what we have budgeted in expenses

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uh, for the general fund. Now, if you
wanted to dig into that and say, okay,

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well, geez, what's comprising most of
that? Well, looks like fire EMS is

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7,371,940.
That's 35.8%

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of of the general fund. So, what does
that consist of? So, I just want to show

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you like how to navigate through this
and look at some highle information and

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then be able to uh drill into specific
accounts and and understand what ma what

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comprises um certain of these department
expenses. And maybe we can just hit the

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just for an example just kind of hit the
two uh the two or three largest ones

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like fire and um non-EP departmental and
maybe recreation. So, if you look at

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fire, so that's about a $7.3 million
budget. And if you look at fire, that's

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on going to be on page 134
um of your or I think it's maybe 13 page

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136 of your packet 134 of the document.

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So, this is towards the end. This gives
you all the departmental detail. And so

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in all these budget table presentations,
we've got the first two columns are

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actuals that were those are actuals
audited. So audited 2024, actual audited

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2025. And then the next is your fiscal
year budget minus one. So that's your

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current budget of 2026. And then your
last column, we have a header legend at

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the top there that shows that is your
2027 proposed budget.

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So we start with revenues. So the fire
department does generate revenues. Um so

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it has
uh

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

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budget and $4 million revenue. Let's
take 3 million out of that because that

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is the cons the remaining budgeted cost
of construction of the Readington fire

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

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treated as an operating expense and
other current charges. Um, and the

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revenue, it's still our expense because
we're incurring it. We're um managing

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the project. Obviously, we're receiving
the invoices. We're paying the vendor.

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Then, we're getting reimbursed by
Panelis County. So, it's an in-n-out

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from that standpoint, but on grossed out
basis, it's 3 million of revenue, 3

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million expense. So, the true operating
budget of the fire EMS,

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not necessarily that 7.3 million. I
would reduce that by 3 million to uh

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about 4.3.
And then you can see the sources of

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revenue on from our main sources are
going to be the Readington Beach fire

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contract and the and the Penllis County
EMS to help support our our that

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Readington Beach EMS station.

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And then you can just look and compare
and say, okay, yeah, you know, what do

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expenses look like uh in the fire
department? And it is our largest

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expense in any single department in the
city operationally. If you add capital

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like storm water that's more but those
are big capital storm water drainage

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improvement projects. So a fire EMS is
the is the largest um expense of the

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city operationally
uh and most of that is personnel. So you

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can see we've also had headcount
increases. If you just look on the

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bottom of page 136,
134 of the document of the of the budget

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book, salaries and wages, you can see
from 2024 actual of 1.35 million, now

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we're at 2.28. So, we have had some
increases in headcount uh more recently

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um
uh which we've already talked about as a

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group of of hiring more um uh
firefighters um to go out on calls. So

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we have had year-over-year increases in
costs in in fire. So that's been a a

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contributor a larger contributor to the
20 million. Then the next would be

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non-EP departmental. So uh that's the
next largest expense of the general

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fund. So if you want to dig into
the numbers within non-EP departmental

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and let me stop and take a breath.

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So we can go well we can go right to the
non-dep departmental section. So what I

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did I showed you these are all your in
your department fund relationships. Your

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first table there is all your expenses
in total budgeted for all your general

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fund departments that comprises a $20
million um roughly $20 million expense

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budget. I've already showed you. Well,
take away three of million of that

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because that's not a recurring operating
because that was just that's going to be

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a one-time um expense to build out
finish building out the um the

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Readington Beach fire station.
So, we're kind of looking at 17 million

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and change in just in what's the
operating um budget for the general

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fund. There's hardly any capital in the
general fund as well, but I'm going to

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add a separate table to show you
operating versus capital on a fund by

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fund basis. I'll show you that
momentarily. I just want to finish this

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analysis so you can see departmental
costs in total and then how you can see

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that breakdown to prior years of actual
current year budget and next year

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proposed budget.

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before I dig into non-dep departmental
any questions on what I presented thus

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far or
>> so I'd like to just for and I I'll do it

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now instead of waiting just for
clarification where in the public uh

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there have been comments made that we
our budget is blown out of sight we're

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spending over $40 million a year and all
this page shows the actual cost of doing

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business in MadiRaa Beach at about $17
million a year and Everything above that

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when you look at our overall budget is
capital improvement projects or projects

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purchasing the land doing things like
that. Would that be a fair assessment

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Andrew?
>> It would. Yeah. And we have a table that

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that expresses that explicitly. So
that's just the on page um 26 of your

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packet 24 of the book. There's an what's
called aggregate view across all funds

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operating and capital analysis
governmental funds. So that'll show you

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what we have budgeted for revenues, fund
over fund, then what we have budgeted

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for expenditures, less capital outlay,
and then we have a line for capital

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outlay. So, I bring it up because um
when you're having a conversation with

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someone and they talk about us spending
$48 million this year in a budget,

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although that is what the number is,
that's not really a factual statement in

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that if you looked at everything over
the 17 million, the 17 million is the

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cost to do in business, keeping the
lights on, paying the staff, maintaining

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the day-to-day days and everything else
is road projects, building something,

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doing something. And if we wanted to
reduce our budget to a $20 million a

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year budget, we would no longer be
paving roads or doing storm water

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repairs or any of the other various
things that we do that are

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projects, maintenance projects.

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» Exactly. So when you see something in
past budget documents, let's say we have

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a 40ome million budget, we would show an
ambitious capital improvement plan that

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might be 20 plus million with all our
storm water projects, some recreation

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things, some you know um
you know public works projects. when you

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add them all up, yeah, there could have
been a 20 plus million dollar capital

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alone of which we often only, you know,
actually

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incurred a small subset of those kind of
proposed projects. The true operating

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budget is, as you see here on page 24 is
more in that uh for the general fund

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about 17 million across all your
governmental funds about 2021 million.

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» Thank you.

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And so that's the that's the
governmental funds. We also have our

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proprietary funds. And our proprietary
funds are are more intended to be

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self-sufficient.
So we've got marina parking, sanitation,

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and storm water.
And the first three are definitely

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self-sufficient. Marina parking have
been operating at a at a at a positive

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profitable clip uh for a number of
years.

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And you can see what those both
revenues, expenditures, and then capital

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outlay, which again is not s is not
significant for any of the funds or

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departments except for storm water with
a $4.9 million proposed capital outlay.

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And I know we've had strategic planning,
we've talked about projects, you're

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like, well, wait a minute, shouldn't we
have a lot more in projected capital

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outlay costs? We'll I'll cover that when
we get into the capital improvement plan

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section of the book because it's
specifically I'll I'll point you to a

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paragraph where we talk about kind of
that the the uh plan around development

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and and um and future plans.

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So that's so that's a good distinction.
you know, expenditures operating and

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operating consists of mostly personnel
within just your operating expenses,

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maintenance, repairs, contractual
services, professional services,

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um
you know, accounting and auditing, um uh

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department supplies, office supplies,
those kind of things. are operating.

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Capital means I'm uh either buying an
asset of something that's greater than

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$5,000 and has a useful life of more
than one year that I will the city will

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own. Uh so that's like equipment and
vehicles or projects. So improving

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infrastructure or improvements to a
building or to a park um that has a

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multi-year value. So that's those are
what we call capital nature. That's the

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distinction between operating and
capital.

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So going back to just those that general
fund and those um departments and their

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expenditures, the highest was fire. So
the next highest is 2.86 million is

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non-EP departmental. I'm not going to go
through every department and go through

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every line item. We'll be here forever.
But I just want to show you like if you

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feel like, geez, I'm lost in this 163
page document. I want to be able to just

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understand better how much is, you know,
what are we paying? What is non-EP

206
00:16:52,160 --> 00:16:59,360
departmental 2.8 million? What does that
consist of? City manager 914,000. What

207
00:16:56,399 --> 00:17:04,160
does that consist of? Finance 787,000.
So we have all that detail at the

208
00:17:01,360 --> 00:17:08,400
departmental level um towards the back
of the book. So if we look at non-EP

209
00:17:05,839 --> 00:17:15,400
departmental, that's going to be on page
uh 148 of your agenda packet 146 of the

210
00:17:12,400 --> 00:17:15,400
book.

211
00:17:18,240 --> 00:17:23,919
So the expenses for non-EP departmental
start kind of lower towards the end of

212
00:17:22,000 --> 00:17:28,319
the page.
So for the first year in non-EP

213
00:17:25,439 --> 00:17:34,720
departmental, we are having a uh a
budgeted position. Um we've never had

214
00:17:32,080 --> 00:17:39,360
personnel in non-EP departmental, but
that's the facilities and project

215
00:17:36,240 --> 00:17:44,240
coordinator um that your city manager um
as we he and I discussed is going to be

216
00:17:42,720 --> 00:17:47,840
allocated to a number of different
projects for a number of different funds

217
00:17:46,320 --> 00:17:52,640
and departments. So instead of trying to
allocate his time 72 different ways,

218
00:17:50,240 --> 00:17:56,960
we're just placing that individual as in
our non-EP departmental and then through

219
00:17:54,559 --> 00:18:02,160
an overhead allocation process, we'll be
charging out the other uh participating

220
00:17:59,120 --> 00:18:11,679
funds using that individual's time. So
that's the fir our first personnel um

221
00:18:05,919 --> 00:18:16,000
uh related budget um for that position.
But far and away the largest expense is

222
00:18:14,000 --> 00:18:22,400
going to be towards the end and that's
on page

223
00:18:18,000 --> 00:18:28,400
150 of your packet 148 of your book. And
there's two large uh transfers.

224
00:18:26,480 --> 00:18:32,480
There's a transfer to debt service fund
and there's a transfer to the stormwater

225
00:18:30,160 --> 00:18:35,919
fund.
Below that was a transfer to the

226
00:18:33,919 --> 00:18:42,880
Archabald fund and that happened back in
2024 for 2.2 million. that was to help

227
00:18:41,039 --> 00:18:47,360
uh fund and provide funding to the
Archabald Park Fund for the beach

228
00:18:44,799 --> 00:18:52,799
growing renourishment project. Um
because we did get some grant money for

229
00:18:48,960 --> 00:18:57,760
that, but we had um our own uh
expenditures incurred by the city far in

230
00:18:55,679 --> 00:19:01,760
excess of what we re received in grant
money. So we needed that general fund

231
00:18:59,200 --> 00:19:06,880
infusion of 2.2 million, but nothing
budgeted since the consistent budgeted

232
00:19:04,880 --> 00:19:13,120
transfers out of the general fund. So
that's included now in our operating

233
00:19:08,880 --> 00:19:17,679
that's 17 million technically you know
20 million but you minus out the 3

234
00:19:14,960 --> 00:19:21,200
million from the um from the Readington
station that's offset by 3 million of

235
00:19:19,280 --> 00:19:26,480
revenue about 17 million of that general
fund expense. So, we got about 1.5

236
00:19:24,240 --> 00:19:30,799
million 1,495,000
that's going to debt service to the

237
00:19:28,320 --> 00:19:37,600
stormwater fund to pay debt service from
that uh 2019

238
00:19:33,200 --> 00:19:42,320
um $15 million debt um issuance
that's being paid over a multi-year

239
00:19:39,039 --> 00:19:47,760
period. Also,
uh about 300,000 to the debt service

240
00:19:45,600 --> 00:19:53,440
fund. That's for the the city center
construction and everything you see here

241
00:19:50,000 --> 00:19:59,360
that occurred back in 2013 I believe is
when that was issued. So we have about a

242
00:19:55,679 --> 00:20:05,440
$1.7 million debt service requirement on
top of our other operating obligations

243
00:20:02,480 --> 00:20:10,640
personnel and operating cost supplies
maintenance etc.

244
00:20:08,160 --> 00:20:15,280
So that's why that those debt service
requirements are that's being borne by

245
00:20:12,720 --> 00:20:21,440
the general fund are included in non-EP
departmental. So that's why it ranks

246
00:20:17,360 --> 00:20:25,640
number two in our largest um uh
departments in terms of spend.

247
00:20:25,840 --> 00:20:36,159
And then number three is recreation. And
so that one's going to be on page 155 of

248
00:20:30,799 --> 00:20:39,120
your book of your packet 153 of your
document.

249
00:20:41,280 --> 00:20:47,520
So you can see we start with just with
just I I wanted to just show you revenue

250
00:20:45,679 --> 00:20:52,880
so you can see what a department might
be individually generating in addition

251
00:20:49,760 --> 00:20:56,480
to its expenses. I know we I we we I
report this in a number of different

252
00:20:54,880 --> 00:21:01,120
places but I thought it's good to also
have here so you can see revenues

253
00:20:58,080 --> 00:21:05,760
compared to expenses. So you can see all
the uh special event fees, recreation

254
00:21:04,000 --> 00:21:10,480
program, after school program, summer
program, etc.

255
00:21:07,200 --> 00:21:15,360
the uh totaling 1438,500
in revenues. And then the cost of the

256
00:21:13,280 --> 00:21:19,200
recreation is going to be at the the
total at the bottom of your budget

257
00:21:17,120 --> 00:21:22,600
expenses,
which is 1,715,500.

258
00:21:23,200 --> 00:21:29,840
And we can compare that over a
multi-year period. So we can compare the

259
00:21:26,960 --> 00:21:39,600
far left column. So, I'm on the bottom
of uh page 157 of your packet 155 of the

260
00:21:35,280 --> 00:21:46,240
book. That's 2024 actual is 1.46
million. 25 actual is 1.47 million. And

261
00:21:43,679 --> 00:21:53,520
then we budgeted 1.58
uh million in 26 and then 1.715

262
00:21:50,400 --> 00:21:58,240
and 27. So a lot of that increase is
mostly in personnel and we didn't add a

263
00:21:55,840 --> 00:22:04,559
lot of positions but towards the end of
fiscal year 25 beginning of 26 we went

264
00:22:01,280 --> 00:22:11,440
through a salary study if you all recall
and the one department that had I

265
00:22:06,799 --> 00:22:15,360
believe the most um uh uh pay rate
changes

266
00:22:12,960 --> 00:22:20,480
um were was in recreation. So a lot of
those lower wage positions that that

267
00:22:17,600 --> 00:22:26,799
increased uh more substantially. So
recreation saw the big had the biggest

268
00:22:23,039 --> 00:22:33,720
impact on that salary study. Um so if
you look at the first expense

269
00:22:30,720 --> 00:22:33,720
in

270
00:22:33,840 --> 00:22:42,240
from 468
uh salaries and wages I'm at page 155 of

271
00:22:39,280 --> 00:22:50,000
the packet 153 of the book. that first
line salaries and wages 468,000 actual

272
00:22:45,280 --> 00:22:54,159
493 actual and it's bumped up to 633,000
um budgeted

273
00:22:52,000 --> 00:23:01,559
and those reflected the the newer pay
rates that went into effect um and I

274
00:22:57,679 --> 00:23:01,559
believe the beginning of 2026.

275
00:23:05,120 --> 00:23:10,080
So that's just the blueprint for you to
be able to go and if you have any

276
00:23:08,240 --> 00:23:14,240
questions, you know, at the end of this
or even if you want to ask me

277
00:23:11,679 --> 00:23:18,480
individually, I'm digging into your
finance department, buddy boy, I'm going

278
00:23:16,400 --> 00:23:22,159
in all your line items. I want to and so
you have that basis of comparison to see

279
00:23:20,559 --> 00:23:27,120
two years of actual history, what we
budget in 26 and what we budget in 27.

280
00:23:24,799 --> 00:23:33,280
And then you get the macro view like I
showed you on page 20 um five of your

281
00:23:30,559 --> 00:23:39,200
packet what all those departments and
their budgeted expenses are for fiscal

282
00:23:35,120 --> 00:23:45,760
year 27 within the general fund.
And after that we go into the um

283
00:23:43,840 --> 00:23:50,880
the different funds. So, like I showed
you on page 24/26,

284
00:23:48,480 --> 00:23:54,679
if we go back up there, that operating
versus capital analysis.

285
00:23:59,760 --> 00:24:06,600
» Sorry, page 26 of your packet. Page 24.
So, that

286
00:24:03,600 --> 00:24:06,600
» is

287
00:24:06,799 --> 00:24:12,080
uh 24 is the booklet, 26 is the packet.
Yeah.

288
00:24:10,880 --> 00:24:17,039
» Whatever I say, it's always going to be
a two-page difference, which is which is

289
00:24:14,000 --> 00:24:20,039
at least good. were consistent.
>> Gotcha.

290
00:24:22,159 --> 00:24:31,559
» Andrew, I have a question for you.
>> How do you figure out

291
00:24:27,919 --> 00:24:31,559
how to budget

292
00:24:31,600 --> 00:24:40,240
a a certain cost?
I mean we we look at let's say the past

293
00:24:37,520 --> 00:24:45,840
three years of
the expenditures and then it's like

294
00:24:43,200 --> 00:24:53,039
let's say 400 some odd,000
and then the budget is 600 and plus. So

295
00:24:48,960 --> 00:25:00,960
how do you how do you drive from what we
have been spending versus the budget?

296
00:24:57,279 --> 00:25:06,080
How do you figure that out?
So for for budgeted expenses,

297
00:25:04,480 --> 00:25:10,080
we've got either kind of one of two
methods. One's either what I would call

298
00:25:07,600 --> 00:25:14,000
like specific identification
and what that we generally budget all of

299
00:25:12,159 --> 00:25:18,159
our personnel and capital under that
specific identification method. What

300
00:25:15,760 --> 00:25:21,840
does that mean? We have in our our
budgeting module within our ERP system,

301
00:25:20,320 --> 00:25:25,760
we have what's called budget position
control management. That's a basically a

302
00:25:23,679 --> 00:25:30,960
roster of all of our filled and vacant
positions and we assign them a pay rate,

303
00:25:29,039 --> 00:25:36,880
whatever their pay rate is. Now we also
include a coal increase, merit increase,

304
00:25:34,880 --> 00:25:42,880
so projected increases for the next
year. We assign them to their respective

305
00:25:39,440 --> 00:25:46,480
fund department combination. And then we
also have what's called budget benefits

306
00:25:44,960 --> 00:25:50,559
that will say okay well they're also
entitled to health insurance and which

307
00:25:48,880 --> 00:25:56,960
employees get health insurance and how
much how much retirement FRS um and then

308
00:25:55,120 --> 00:26:02,640
we have you know workers comp rates as
well um that fluctuate depending on the

309
00:26:00,240 --> 00:26:08,880
nature of work they do. So those are all
like specific employees either filled or

310
00:26:07,039 --> 00:26:13,039
vacant. It could be vacant positions or
their actual employee with their real

311
00:26:11,039 --> 00:26:18,400
information and that develops our
personnel budget. So that's not just a

312
00:26:15,039 --> 00:26:24,240
well shoot. We spent this department had
342,000 of salaries last year. Let's

313
00:26:22,000 --> 00:26:29,120
just do 360,000 this year. Let's just do
a little bit of a bump. Um no, it's very

314
00:26:26,720 --> 00:26:33,279
specific. We go employee by employee.
Have all that information into our

315
00:26:30,880 --> 00:26:36,720
budgeting module. And that's and so then
and then that's where I'm generating

316
00:26:34,799 --> 00:26:41,360
these reports and the system's
calculating all of the actual budgeted

317
00:26:38,799 --> 00:26:48,000
salaries and wages. It's based on actual
calculated um figures.

318
00:26:45,679 --> 00:26:51,919
Same with capital. Capital is not like
well we spent 3 million last year in the

319
00:26:50,080 --> 00:26:56,559
Archabald fund or in the Sorar fund.
Let's maybe spend four million this year

320
00:26:53,440 --> 00:27:03,520
and and you know it's kind of a field.
No, we identify specific projects and

321
00:26:59,840 --> 00:27:10,480
then we have a multi-year capital plan.
Here's what in 20 um well spent in 27 28

322
00:27:07,279 --> 00:27:14,320
29 30 and you project it on a project by
project basis and the sum of all those

323
00:27:12,799 --> 00:27:19,039
projects for a particular fund
department then translate to my capital

324
00:27:16,880 --> 00:27:25,279
budget you know on a highly summarized
level. operating is where we've got a

325
00:27:22,400 --> 00:27:28,960
couple options and some diff different
um department heads do it a little

326
00:27:26,720 --> 00:27:32,320
differently. Some look at what we've
budgeted what they budget in the past.

327
00:27:30,640 --> 00:27:36,320
They look at some of their past expenses
and then they make their best estimate

328
00:27:33,840 --> 00:27:40,960
of the next year's budget. Others an
other option could be again specific

329
00:27:38,720 --> 00:27:44,559
identification for the finance
department accounting and auditing. I

330
00:27:42,720 --> 00:27:48,720
know we've got our audit firm and our
fees. So I identify that in the system

331
00:27:46,480 --> 00:27:55,360
and here's our project projected audit
fees. we pay our

332
00:27:51,120 --> 00:27:58,240
our um uh FA, our municipal advisor, we
pay them this amount. And I'm

333
00:27:56,559 --> 00:28:01,760
specifically going through line item by
line item what those are. And so those

334
00:28:00,320 --> 00:28:06,799
are a couple different ways that we can
then create um a budget for operating

335
00:28:05,120 --> 00:28:10,240
costs.
um either by looking at past year trends

336
00:28:08,799 --> 00:28:14,960
and saying here's what we budgeted last
year, let's do a 5% increase or maybe a

337
00:28:13,120 --> 00:28:20,080
decrease depending on what I what I
think is going to incur in the next year

338
00:28:16,720 --> 00:28:25,919
or specifically identifying um expenses
that you know are going to uh occur next

339
00:28:22,159 --> 00:28:29,520
year. So that's for personnel and
capital. It's very specific to the

340
00:28:28,080 --> 00:28:33,760
employee and to the project. for
operating it's a bit more of an estimate

341
00:28:31,679 --> 00:28:38,000
since that can occur from a number of
different vendors and different types of

342
00:28:35,360 --> 00:28:43,440
expenses and then revenues is more of
the projection how you know my advalorum

343
00:28:41,440 --> 00:28:48,159
taxes that's a pretty good calculation
here's my you know what the property

344
00:28:46,080 --> 00:28:54,960
appraiser is saying is our our taxable
values here's our millage rate um times

345
00:28:51,600 --> 00:28:59,279
a percent you know 95 96% for collection
rate and here's our proposed um

346
00:28:57,279 --> 00:29:03,200
advalorum tax revenue
For other revenues, it's more looking at

347
00:29:01,279 --> 00:29:06,640
historical trend information. What have
we been collecting in prior years? Do we

348
00:29:04,960 --> 00:29:09,919
is there any environmental factors that
might change as a result of that that we

349
00:29:08,720 --> 00:29:13,279
put our best estimates forward for
revenues?

350
00:29:10,320 --> 00:29:21,600
» So, if if the expenditure is less than
the budgeted cost at the end of the uh

351
00:29:16,880 --> 00:29:25,760
budget year uh fiscal year, you can
put that funds back into like general

352
00:29:24,240 --> 00:29:28,720
funds.
>> Good question. That's next thing I'm

353
00:29:27,120 --> 00:29:33,760
going to go on go is we're going to look
at fund balance analysis. So I want to

354
00:29:30,880 --> 00:29:37,919
go through uh a page of called that's
called fund balance analysis. So and

355
00:29:35,679 --> 00:29:42,559
that's exactly what happens. You have
your actual fund balance then you have

356
00:29:39,679 --> 00:29:45,440
your year's results and then that fund
balance either increases or decreases.

357
00:29:44,080 --> 00:29:50,720
You increase your reserve or you
decrease them. Then you have your

358
00:29:47,200 --> 00:29:54,880
budgeted results and then here's our
budgeted ending fund balance at the next

359
00:29:52,880 --> 00:29:59,440
year. And that I'll show you a schedule
that'll depict all that. And I kind of

360
00:29:56,880 --> 00:30:02,480
want that's my next great segue. That's
what I want to talk about next. And

361
00:30:00,720 --> 00:30:06,240
going through on a fund by fund basis
what reserves, beginning reserves,

362
00:30:04,159 --> 00:30:12,240
ending reserves look like, ending budget
reserves look like fund by fund and some

363
00:30:08,640 --> 00:30:16,440
that um um that merit some additional
explanation. I'll go through that.

364
00:30:17,520 --> 00:30:22,279
Any other questions or do you want to
walk through that now?

365
00:30:22,799 --> 00:30:30,559
Okay, good. You haven't lost me
completely yet. We're we're still

366
00:30:26,799 --> 00:30:38,200
hanging on by a thread. All right, good.
Let's go to page uh 60 of your agenda

367
00:30:33,279 --> 00:30:38,200
packet, page 58 of your budget book,

368
00:30:42,799 --> 00:30:49,600
fund balance. And this isn't in this is
not in prior year's books, our budget

369
00:30:47,679 --> 00:30:54,559
books, because again, we this is a newly
prepared budget book that I I created.

370
00:30:52,240 --> 00:30:58,799
um to be more aligned with the
government finance officers association

371
00:30:56,399 --> 00:31:02,559
GFOA distinguished budget award program.
And so they have a whole section fund

372
00:31:00,480 --> 00:31:07,120
balance that that shows this information
and I like it because I think it it

373
00:31:04,399 --> 00:31:10,159
presents very valuable information on
well gez we're our expense our budget

374
00:31:08,799 --> 00:31:13,919
expenses are higher than our budget
revenues. Can we afford that? Well yes

375
00:31:12,399 --> 00:31:20,640
if we have sufficient reserves to
capture it. Um so this goes through you

376
00:31:17,600 --> 00:31:26,640
know um if we look at this table here on
this in this page let's kind of just

377
00:31:23,600 --> 00:31:33,039
take this fund by fund.
So in the Archabald Park fund we'll

378
00:31:28,720 --> 00:31:38,320
start we'll start first um
we have 2025 ending fund balance net

379
00:31:35,679 --> 00:31:43,600
position. So this is based on audited
figures. So that's this is done 2025

380
00:31:41,760 --> 00:31:48,159
already done audited. So these you could
agree to your audited financial

381
00:31:45,200 --> 00:31:52,000
statements uh fund by fund this is the
are basically ending fund balance right

382
00:31:50,080 --> 00:31:56,000
it's the difference between assets and
liabilities

383
00:31:53,519 --> 00:31:59,360
um and what either increases fund
balance every year or decreases it it's

384
00:31:57,760 --> 00:32:06,399
called change in fund balance that's
revenues minus expenses

385
00:32:02,320 --> 00:32:12,720
so starting in 2026 end of 2025 we're at
663,000

386
00:32:08,399 --> 00:32:16,480
so thus far in 26 we had some um some
beautifification projects, park pocket

387
00:32:14,799 --> 00:32:20,480
park improvement projects. We have been
spending some capital

388
00:32:18,640 --> 00:32:26,240
had had some capital expenditure in the
arch ball park fund and that's um you

389
00:32:23,519 --> 00:32:31,360
can see this is year to date as of like
early August when I kind of put the

390
00:32:28,080 --> 00:32:37,840
finishing touches on this. So these are
near actual numbers to date. um maybe

391
00:32:35,039 --> 00:32:43,120
just a few weeks outdated, but otherwise
this is capturing actual activity year

392
00:32:40,799 --> 00:32:49,600
to date in fiscal year 2026, which
started October 1st to early August.

393
00:32:47,519 --> 00:32:58,320
So, you can see we do have a a a pretty
wide gap there from 539,000 revenues

394
00:32:54,480 --> 00:33:04,399
to 1.1 million in expenses.
So, that's now we're that's depleting

395
00:33:00,080 --> 00:33:11,519
our fund balance. Then in 2027,
more of the same thing. We're at 577,000

396
00:33:07,600 --> 00:33:15,279
of budget revenues to 1.45 or 1.46
million expenses. So budgetarily, the

397
00:33:13,840 --> 00:33:19,840
math isn't going to work. It's not
working long term, right? We're

398
00:33:17,360 --> 00:33:25,120
expending, we're proposing to expend
much more than what we're generating in

399
00:33:23,279 --> 00:33:29,760
revenue. So let's go take a little
deeper dive and to see what what's

400
00:33:26,880 --> 00:33:37,880
causing that. What does that look like?
So, let's go down to page uh 35 of your

401
00:33:33,200 --> 00:33:37,880
packet, page 33 of your book.

402
00:33:49,840 --> 00:33:56,720
Okay.
So, start it starts. So this is all this

403
00:33:54,480 --> 00:34:00,880
is shows you revenues and expenses by by
fund for all of your other funds outside

404
00:33:58,480 --> 00:34:07,120
of the general fund. So starting with
Archabald Park, Archabald Park,

405
00:34:02,399 --> 00:34:10,399
Archabald fund is fund 110
and then the first table is all of your

406
00:34:08,879 --> 00:34:16,320
revenues. The next table is all your
expenses.

407
00:34:12,960 --> 00:34:20,879
So the main primary source of revenues
in the uh for Archabald Park is your

408
00:34:18,639 --> 00:34:26,919
parking meters.
So, we have that modestly budgeted at uh

409
00:34:23,919 --> 00:34:26,919
550,000.

410
00:34:27,200 --> 00:34:30,200
Um

411
00:34:30,399 --> 00:34:36,399
I think 2024 is probably a better
estimate of what your true revenue

412
00:34:34,879 --> 00:34:42,960
potential is and that was almost
600,000.

413
00:34:38,079 --> 00:34:49,280
You see in 2025 it went down to 383,000.
But remember, we had a giant mound of

414
00:34:45,679 --> 00:34:53,679
sand for a period of multiple months
before we even opened up that lot. So

415
00:34:52,159 --> 00:34:58,079
that
ate into a lot of our revenue potential

416
00:34:55,919 --> 00:35:05,520
in 2025. I'm impressed that we had the
recovery that we did and got 383,000.

417
00:35:00,800 --> 00:35:11,599
So I think 550,000 for 27 and 26 and 27
budget is even a little conservative.

418
00:35:09,440 --> 00:35:18,640
Uh, if you want to give me a moment, I
can even pull up

419
00:35:13,760 --> 00:35:22,520
um what our actual revenue is thus far
in just that one account

420
00:35:23,200 --> 00:35:27,079
because I'm curious myself.

421
00:35:28,480 --> 00:35:36,560
So, we're at f $515,95
just on the Archabald uh beach parking

422
00:35:34,880 --> 00:35:41,359
meters.
So, I think we'll definitely meet or

423
00:35:38,320 --> 00:35:46,320
exceed the 550,000 budgeted um by the
end of September.

424
00:35:44,400 --> 00:35:50,240
So, it probably maybe get closer to
about 600,000,

425
00:35:48,079 --> 00:35:54,720
more in line with what we were at in
2024.

426
00:35:53,119 --> 00:36:02,320
And then we've got the beach walkover
chair rentals. That's a $12,000

427
00:35:57,680 --> 00:36:07,040
um annual. And then some interest.
We also, if you see above that was a

428
00:36:04,640 --> 00:36:12,880
concession snack shack. So that was a
good $102,000 and then that frigin

429
00:36:09,839 --> 00:36:16,560
hurricane hit and now we're at nothing.
Right? We budgeted in 26 I think at the

430
00:36:15,280 --> 00:36:22,240
time when we went through the budget
process in 2025. We thought we could

431
00:36:19,119 --> 00:36:27,359
slap some repairs together and and rent
it out, but realistically no. We've got

432
00:36:25,200 --> 00:36:30,640
um more work to do on that. So
conservatively, we haven't budgeted any

433
00:36:28,880 --> 00:36:38,720
revenue for Snack Shack. That's not to
say we can't um

434
00:36:35,040 --> 00:36:41,920
um make the the the needed repairs and
actually have the tenant in and and rent

435
00:36:40,240 --> 00:36:47,599
that out and actually generate some
revenue in 2027. So revenue is possible.

436
00:36:45,119 --> 00:36:49,680
At baseline, it was about $100,000 a
year. So hopefully we can get back to

437
00:36:48,960 --> 00:36:57,520
that at some point.
>> So Andrew, the FEMA fund, did that is

438
00:36:54,079 --> 00:37:03,160
that included anything in in in anything
in here?

439
00:36:59,839 --> 00:37:03,160
the FEMA.

440
00:37:07,440 --> 00:37:15,680
So, our our FEMA reimbursements I think
were uh at least thus far have just

441
00:37:12,880 --> 00:37:18,640
recorded all in the general fund even
though I know some of it is maybe

442
00:37:17,119 --> 00:37:23,119
general fund related and some you can
maybe carve out to other funds. I think

443
00:37:20,240 --> 00:37:27,440
when we got the check we have a a a FEMA
grant revenue account in the general

444
00:37:25,200 --> 00:37:31,359
fund and that's what we parked it. We
can certainly dig into that number more

445
00:37:29,040 --> 00:37:33,520
and and and allocate it to to different
funds

446
00:37:31,680 --> 00:37:37,920
» because you can only spend that money in
a certain way, right, for construction.

447
00:37:36,160 --> 00:37:42,320
» Well, so those those FEMA funds is
that's a reimbursement. So we've already

448
00:37:39,359 --> 00:37:48,240
already incurred the um the damage and
the costs. Um and so

449
00:37:46,800 --> 00:37:51,839
essentially that's just a reimbursement
for the cost that we've already

450
00:37:49,280 --> 00:37:56,800
incurred. We've had to show FEMA. It's a
pretty arduous process pulling up all

451
00:37:54,640 --> 00:38:02,240
the the the documentation that they
want. That includes evidence of of of

452
00:38:00,240 --> 00:38:06,160
damage, pictures, and costs,
rehabilitation costs incurred. So, we've

453
00:38:04,720 --> 00:38:09,760
already incurred those costs. We're just
looking to we're looking to get

454
00:38:07,760 --> 00:38:14,079
reimbursed.
So, we're keeping that out of the out of

455
00:38:11,280 --> 00:38:19,520
the um we don't I don't believe we have
any FEMA revenues

456
00:38:16,800 --> 00:38:24,400
um budgeted, but that's not to say we
cannot we won't be getting FEMA revenues

457
00:38:22,079 --> 00:38:29,359
trickling in over the next fiscal year
or two years, but it's just a little

458
00:38:26,640 --> 00:38:35,400
unpredictable based on what they
reimburse and the timing that I think we

459
00:38:31,200 --> 00:38:35,400
excluded from from the budget.

460
00:38:35,599 --> 00:38:46,240
Um so then getting back so realistically
if everything's operating normally we'd

461
00:38:41,920 --> 00:38:51,680
have about 600,000 and 100,000 from the
uh parking meters and the snack shack

462
00:38:49,040 --> 00:38:58,800
respectively. So that puts us at about,
you know, 800 uh, excuse me, 700,000

463
00:38:56,320 --> 00:39:04,240
plus interest and the chair rentals 7
maybe 750,000.

464
00:39:01,760 --> 00:39:10,240
And that can as long as we're just doing
pure, you know, or in our personnel

465
00:39:06,320 --> 00:39:16,560
costs, we're allocating um,
either part uh, part of maybe public

466
00:39:13,200 --> 00:39:19,760
works and maybe one one or so dedicated
employees that handle parks. that's

467
00:39:18,320 --> 00:39:24,320
that's getting absorbed into the
salaries and wages expense. So some

468
00:39:22,640 --> 00:39:29,200
those are the personnel costs that are
pretty fixed year-over-year.

469
00:39:26,960 --> 00:39:36,240
Uh we do have a large if you look at the
bottom of page 36 of your packet 34 of

470
00:39:32,480 --> 00:39:42,480
the book maintenance building DAV I
believe those are the budgeted costs for

471
00:39:38,400 --> 00:39:47,359
the um for the snack shack um
uh repair.

472
00:39:44,960 --> 00:39:53,599
So that would be nonrecurring. So, if
you take out that, that's non-recurring.

473
00:39:50,880 --> 00:39:59,680
Um, and then you look at the end of the
the last page, we don't really have we

474
00:39:56,400 --> 00:40:04,880
have $60,000 in capital. So, you take
out five $560ish,000.

475
00:40:02,800 --> 00:40:10,560
Just the pure operating expenses can be
more like $800,000. So, we can maybe ek

476
00:40:08,800 --> 00:40:14,640
out close to break even if we're not
incurring any capital costs or we don't

477
00:40:12,480 --> 00:40:20,880
have any large
um maintenance work that we have to do.

478
00:40:18,320 --> 00:40:27,599
And then our biggest maintenance expense
is maintenance grounds parks. That's at

479
00:40:24,160 --> 00:40:34,240
150,000 um budgeted that that's on that
last page that I'm I went over page 37

480
00:40:30,480 --> 00:40:39,599
of your packet 35 of the book. That's
your besides the maintenance to that to

481
00:40:37,200 --> 00:40:45,040
the snack shack which was more one-time
hurricane induced um your ongoing

482
00:40:42,000 --> 00:40:49,440
maintenance expenses is more on the um
maintenance grounds parks. So we have

483
00:40:46,400 --> 00:40:58,880
budget 150,000.
So it's not barely probably not breaking

484
00:40:53,520 --> 00:41:04,480
even uh on an annual recurring basis as
as long as we don't have any capital

485
00:41:02,880 --> 00:41:09,599
needs. But as soon as we do, then we
know that this Archabal park fund is not

486
00:41:06,880 --> 00:41:12,640
self-sufficient.
And I'm not sure that's exactly the

487
00:41:11,040 --> 00:41:16,960
desire that we need that that fund to be
self-sufficient because we care about

488
00:41:14,000 --> 00:41:22,880
our parks. Um just presenting the
reality that periodically we might need

489
00:41:19,359 --> 00:41:26,960
to like we had that $2.2 $.2 million
general fund transfer into the Archabald

490
00:41:24,800 --> 00:41:31,760
Park to help fund the beach groin
reconstruction project based on just

491
00:41:30,000 --> 00:41:38,240
these operating needs, the lack of
revenue on the snack shack. Now, um and

492
00:41:36,000 --> 00:41:44,960
the the maintenance or repairs and
maintenance costs to to u renovate

493
00:41:41,359 --> 00:41:49,599
damaged areas. um we'll need another
another infusion from the general fund

494
00:41:47,200 --> 00:41:54,240
and then hopefully on a long-term basis
we can be at or close near near break

495
00:41:51,680 --> 00:41:58,560
even but that one's that one's tight.
>> So you said it's non self-sufficient

496
00:41:56,560 --> 00:42:02,480
correct?
Well, currently right now in this in

497
00:42:00,160 --> 00:42:07,119
this we have some one time I'm saying
what's in the long-term horizon on the

498
00:42:04,160 --> 00:42:12,560
Archabald Park Fund if we wanted to fund
those those personnel costs and fund all

499
00:42:10,880 --> 00:42:18,960
the the maintenance around all the parks
around the entire city. Um those two

500
00:42:15,839 --> 00:42:23,680
revenue sources are barely sufficient to
do that. Well, I'm not sure that this is

501
00:42:21,520 --> 00:42:28,319
the exact time to bring this up, but I
do believe one of our residents or

502
00:42:26,079 --> 00:42:35,200
commercial people was talking about
doing a long-term lease on the building

503
00:42:32,000 --> 00:42:38,480
if and he would be responsible for the
interior

504
00:42:36,960 --> 00:42:44,400
um
building things and if there would be

505
00:42:40,880 --> 00:42:48,560
another hurricane or storm, he would
make it such that it could be removed.

506
00:42:46,960 --> 00:42:54,000
And once again, like I say, as we're
talking budget, you know, it's kind of

507
00:42:51,359 --> 00:42:58,400
putting the cart before the horse, but
um is that something that it could

508
00:42:56,560 --> 00:43:05,040
become,
you know, a revenue if we had a

509
00:43:02,079 --> 00:43:11,400
long-term lease,
I believe, and that's why I'm just

510
00:43:07,359 --> 00:43:11,400
bringing this up at this point.

511
00:43:12,160 --> 00:43:15,680
» Open form if anyone wants to address I
mean, anything that's at least that

512
00:43:15,280 --> 00:43:21,280
we're
>> So, I will. So, Archabald, the snack

513
00:43:18,160 --> 00:43:28,319
shack, has always had a long-term lease
up until the hurricane when the it

514
00:43:25,440 --> 00:43:34,800
became uninhabitable and needs repair.
So, once we repair it, it will go back

515
00:43:31,599 --> 00:43:39,359
out to bid for a new lease on it and
that person would be responsible in a

516
00:43:37,440 --> 00:43:43,359
triple net lease to maintain it and take
care of it.

517
00:43:41,440 --> 00:43:46,800
So, that will happen again. That revenue
will come back, but it won't come back

518
00:43:44,720 --> 00:43:50,640
until we repair the building and make it
where someone else can come in. When

519
00:43:49,040 --> 00:43:54,319
they go in, the building will be white
boxed. They will be responsible to bring

520
00:43:52,400 --> 00:43:58,240
in all the equipment for it to be a
restaurant and to be a retail

521
00:43:56,560 --> 00:44:00,240
establishment. That's required by the
lease. So, that'll happen.

522
00:43:59,760 --> 00:44:03,240
» Thank you.
>> Yeah.

523
00:44:05,760 --> 00:44:09,640
» Hopefully sooner than later.

524
00:44:10,000 --> 00:44:21,839
» Okay. Okay. So then back to page 60 of
your packet. Oh no, sorry. Uh yes, page

525
00:44:15,440 --> 00:44:24,720
60 of your packet 58 of the document.
So that's the Archabald Park fund. I

526
00:44:23,599 --> 00:44:30,079
just wanted to give you kind of a
realistic overview of where it's at

527
00:44:26,400 --> 00:44:33,760
currently. Um and kind of long longer
term projections.

528
00:44:32,160 --> 00:44:40,560
Um
building fund next. That one um we've

529
00:44:36,960 --> 00:44:45,599
already talked about to a degree. uh the
2025 ending fund balance of almost

530
00:44:43,040 --> 00:44:51,200
$70,000. It had a much higher fund
balance before um but then we had the

531
00:44:48,079 --> 00:44:56,240
hurricane hit and we had uh the um
waving of the permit fees as you know.

532
00:44:53,839 --> 00:45:04,720
Um some of that bled in a little bit in
2026. Um but um overall our permit

533
00:45:02,160 --> 00:45:11,200
revenues definitely increased. I think
it was maybe 400 something,25

534
00:45:07,359 --> 00:45:16,800
26 is already trending to 700,000 plus.
Um but we have incurred a lot of

535
00:45:12,640 --> 00:45:20,720
expenses 1.1 year to date on expenses in
the building fund

536
00:45:19,200 --> 00:45:26,240
and a lot of that because we had you
know uh turnover and we had uh

537
00:45:23,200 --> 00:45:32,160
outsourced positions that were full-time
in terms of the role that were uh

538
00:45:29,520 --> 00:45:39,760
outsourced to an external uh third
party. And so that by by nature is a

539
00:45:37,280 --> 00:45:44,720
more expensive proposition
um when you have a third a third party

540
00:45:42,240 --> 00:45:49,359
doing a full-time role within your
organization. So we're making strides on

541
00:45:47,520 --> 00:45:53,680
on hiring and filling positions
internally. So that is going to reduce

542
00:45:51,440 --> 00:45:59,119
our professional services expenses and
get us more um into a better position in

543
00:45:56,720 --> 00:46:05,200
terms of personnel costs both
contractually and uh internal FTEEs.

544
00:46:03,839 --> 00:46:08,800
But then the other thing that we need to
do is is and we've already talked about

545
00:46:06,880 --> 00:46:14,480
this so I don't want to belabor it is
just reevaluate the permit fees that are

546
00:46:10,640 --> 00:46:20,560
being charged. They were at 2% of um of
of of total permit value. that got

547
00:46:17,359 --> 00:46:25,680
reduced down to 1% and currently that's
not sufficient to meet the operating

548
00:46:22,640 --> 00:46:29,599
needs of this department. Um plus the
state has now come out with regulations

549
00:46:27,280 --> 00:46:36,880
that make our our
require compliance over time to be more

550
00:46:32,480 --> 00:46:42,480
of a um service model like looking at
our actual um time and materials and

551
00:46:39,200 --> 00:46:47,280
expenses that go into the work to
generate the permit. So, that's all in

552
00:46:45,760 --> 00:46:52,000
progress and Marcy's here if you have
any other specific questions on that.

553
00:46:49,119 --> 00:46:57,520
Ultimately, the long-term trend is that
this is uh a a break even proposition.

554
00:46:55,200 --> 00:47:01,520
And so, it it's not currently, but
that's that's the goal of the future.

555
00:46:59,680 --> 00:47:08,079
And so, we've got a team in place
that'll be working on that. But um where

556
00:47:04,640 --> 00:47:12,560
you see this the fund balance and
projected negative 1.57 million. Yes,

557
00:47:11,040 --> 00:47:17,119
that's concerning, but that's something
we'll be coming back to you all with

558
00:47:14,480 --> 00:47:22,480
with proposed fees changes on our on our
um permitting and all of our community

559
00:47:19,200 --> 00:47:28,640
development fees.
Uh I'll skip over debt service fund and

560
00:47:25,280 --> 00:47:31,839
the gas tax fund. Those are um gas tax
fund is largely kind of break even.

561
00:47:30,560 --> 00:47:35,680
There's not a lot of expenses running
through that. We have some gas tax fees

562
00:47:33,359 --> 00:47:39,599
and then we've got some um kind of
lighting and and street maintenance

563
00:47:37,359 --> 00:47:43,520
expenses that go into that. Debt service
is just taking that general fund

564
00:47:41,040 --> 00:47:49,839
transfer. It's increasing its fund
balance because it's earning interest um

565
00:47:46,160 --> 00:47:53,760
on its on its pulled cash balance. Um
but ultimately it's taking in the the

566
00:47:51,280 --> 00:48:00,079
the transfer in and then making the debt
service payment for the the 2013 bonds

567
00:47:57,520 --> 00:48:07,680
that were issued.
So then you've got the general fund

568
00:48:04,079 --> 00:48:17,119
where we were at end of 2025 almost $19
million pretty healthy fund balance. Um

569
00:48:13,359 --> 00:48:20,880
and so then as you're aware that did get
um

570
00:48:18,880 --> 00:48:26,079
uh largely depleted if you look at your
2026 revenues year to date and 2026

571
00:48:23,760 --> 00:48:29,520
expenses year to date. And I walked
through this if you all recall from last

572
00:48:27,760 --> 00:48:33,359
Friday our strategic plan meeting. We
talked about this a little like where

573
00:48:30,800 --> 00:48:38,839
does general fund sit currently. So if
you just look at those two numbers

574
00:48:35,839 --> 00:48:38,839
32,223,791.

575
00:48:39,680 --> 00:48:46,400
So if I actually take those two numbers
and I'll just do the little math on my

576
00:48:43,200 --> 00:48:50,480
own and let's pull that up and and run
it through. So we've got some

577
00:48:47,440 --> 00:48:55,839
reconciling items to contend with.
So you've got 32 million

578
00:48:53,760 --> 00:49:01,720
223791
in expenses minus 18 million488

579
00:49:02,240 --> 00:49:08,839
uh 287 in revenues.
That's a 13,735

580
00:49:09,040 --> 00:49:21,920
um,000
difference. And then you add back in $18

581
00:49:15,440 --> 00:49:29,200
million or or back that out $18 million
120,000 the closing cost included.

582
00:49:26,319 --> 00:49:35,680
That's the purchase of the 555 property.
Now you're at plus 4.3 million.

583
00:49:33,119 --> 00:49:42,839
And we received that emergency from that
emergency bridge loan program.

584
00:49:39,200 --> 00:49:42,839
Uh we received

585
00:49:43,839 --> 00:49:51,720
I'm drawing a blank on on how much we
got. I believe it was 3.

586
00:49:54,800 --> 00:49:59,800
Pulling that up now. Give me one second.

587
00:50:03,440 --> 00:50:06,839
3 million48,500.

588
00:50:07,520 --> 00:50:15,319
So, if I add back 3,148
um 5,3148500,

589
00:50:16,160 --> 00:50:25,520
I'm at 1.2 million ahead.
So, what did I just do? I took basically

590
00:50:22,640 --> 00:50:30,559
our our our results thus far year to
date in the general fund across all

591
00:50:27,520 --> 00:50:35,280
departments, all of our revenues, taxes,
charges for services, everything, minus

592
00:50:32,880 --> 00:50:40,079
all of our expenses in the general fund.
and we were at a $13 million deficit.

593
00:50:38,160 --> 00:50:44,800
Why were we at a $13 million deficit?
Well, we spent $18.12 million on buying

594
00:50:42,960 --> 00:50:52,079
a property,
but then we also received $348

595
00:50:49,280 --> 00:50:57,119
million resulting from the hurricane
damage um when you all approved this

596
00:50:55,119 --> 00:51:02,559
emergency bridge loan program, which is
great for us, right? No repayment terms,

597
00:50:59,760 --> 00:51:07,599
no interest acrewing, keep the money,
pay us back over 10 years. maybe they

598
00:51:04,400 --> 00:51:12,079
won't even make us pay it back. Um, so
you factor in taking those two rec those

599
00:51:09,839 --> 00:51:18,240
two reconciling items into account,
you're at about a one $1.2 million on

600
00:51:14,240 --> 00:51:24,960
the profit side. Now, what I want to see
is the general fund operating at at

601
00:51:20,720 --> 00:51:34,319
around break even. Um,
and so where we're at then in 2027, we

602
00:51:28,720 --> 00:51:40,000
are at about a a 3 million or so. um
deficit budgetarily, right? Budgetarily

603
00:51:37,839 --> 00:51:44,559
a deficit and and most of that's just
personnel costs. Um there's not a whole

604
00:51:42,480 --> 00:51:50,720
lot of capital in the general fund that
we're um that we're budgeting for. So a

605
00:51:48,000 --> 00:51:56,880
lot of just operating expenses exceeding
our budgeted revenues. Um but like I

606
00:51:53,920 --> 00:52:01,440
said, actual results
typically always fall in less than

607
00:51:58,640 --> 00:52:05,040
budget. and then so we'll see as as the
actual plays out. But if you look at

608
00:52:03,680 --> 00:52:09,680
that and you're concerned, I totally
understand. Um there's just not much to

609
00:52:08,079 --> 00:52:15,720
cut out of the general fund unless you
want to cut um positions. Um

610
00:52:19,200 --> 00:52:26,160
so that's the that's the stark reality.
Even with that budgeted 3 million

611
00:52:22,960 --> 00:52:31,680
deficit, we're still at 1.7, you know,
million remaining of of budgeted fund

612
00:52:29,119 --> 00:52:38,000
balance. If if actual plays out exactly
the way budget does.

613
00:52:35,040 --> 00:52:44,079
So again, I'm not I'm not sounding alarm
bells like, okay, we got 17 million

614
00:52:40,480 --> 00:52:47,760
budget revenue, 20.6 budget expenses. Um
because I know our our actuals always

615
00:52:46,000 --> 00:52:52,480
come in lower. We budget very
conservatively on health insurance. Um,

616
00:52:50,319 --> 00:52:56,319
so our actual health insurance costs are
always typically lower than budgeted. We

617
00:52:54,559 --> 00:53:01,040
have vacant positions that don't get
filled. So invariably we don't incur all

618
00:52:59,520 --> 00:53:05,200
the costs that we budget in the general
fund. Nevertheless, I always like to

619
00:53:03,599 --> 00:53:09,280
budget actual revenues to be at least
somewhat in line with expenses. So I

620
00:53:07,119 --> 00:53:16,160
just want to keep an eye on that. Um,
nothing I want to sound the alarm bells.

621
00:53:11,760 --> 00:53:22,040
Um, but we want we want budgeted inflows
and the general fund to be at least

622
00:53:17,760 --> 00:53:22,040
somewhat in line with budget outflows.

623
00:53:22,400 --> 00:53:29,680
Okay, moving on.
Impact fee fund.

624
00:53:27,839 --> 00:53:33,440
And remember,
there used to not be a parking fund. We

625
00:53:31,680 --> 00:53:36,880
used to have parking parking all parking
revenues in the general fund. So, if I

626
00:53:34,880 --> 00:53:40,480
just did that, general fund would look a
lot different. Instead, and I'm going to

627
00:53:38,319 --> 00:53:45,359
get to that at the end. Well, geez, we
also have two very profitable

628
00:53:42,960 --> 00:53:48,000
uh operations at marina and parking that
if we just said, well, let's just put

629
00:53:46,400 --> 00:53:52,720
all the revenue Oops, excuse me. In the
general fund, then we wouldn't be seeing

630
00:53:50,800 --> 00:53:56,640
a three, we would have 3 million or so
higher of revenues and we would show um

631
00:53:55,119 --> 00:54:00,720
even budgeted profit in the general
fund. So, the sky is not falling. I just

632
00:53:58,960 --> 00:54:04,559
want to I'm just presenting factual
numbers here to you of actual results as

633
00:54:02,960 --> 00:54:08,480
well as what we're budgeting next year
on a fund by fund basis so you can see

634
00:54:06,800 --> 00:54:12,640
what our budget reserves are at the end
of the next year. I just think this is a

635
00:54:10,319 --> 00:54:17,280
very helpful table to kind of go through
this fund by fund

636
00:54:15,359 --> 00:54:21,440
impact fee fund. We just keep increasing
our our reserves and impact fees in the

637
00:54:19,520 --> 00:54:26,400
impact fee fund. So this is one that we
can if the project qualifies we can

638
00:54:24,480 --> 00:54:30,240
designate it. We don't have any budgeted
expenses in the impact fee fund. But

639
00:54:28,559 --> 00:54:33,200
that's not to say we cannot spend out of
the impact fee fund. We would just need

640
00:54:31,599 --> 00:54:37,119
to put forth in a budget amendment to
you all to say we've got a great

641
00:54:34,800 --> 00:54:43,599
eligible project that we want to pay
with impact fee dollars. Um whether

642
00:54:39,520 --> 00:54:50,000
that's a a future um recreation project
and close a basketball court or um

643
00:54:46,240 --> 00:54:54,559
anything that can be um that would apply
that um based on the statutory

644
00:54:52,720 --> 00:54:59,520
requirements on how we can spend impact
fees. We've got money there to the point

645
00:54:57,599 --> 00:55:03,839
where it's getting to about 1.4 million
of of available funding. So that's not

646
00:55:01,760 --> 00:55:09,920
pocket change.
>> Andrew, um yeah, the impact fee fund is

647
00:55:06,960 --> 00:55:14,240
that because I know there's always
impact fees for water and sewer and

648
00:55:12,319 --> 00:55:21,119
water and sewer we don't own. County
does. So that portion of the impact fees

649
00:55:19,280 --> 00:55:27,280
we still collect, but then we have to
pass it on to Penelis County.

650
00:55:24,240 --> 00:55:34,960
So the impact fee fund that we have is
basically the net

651
00:55:30,800 --> 00:55:39,760
amount that is paid to us. Is that
correct?

652
00:55:36,640 --> 00:55:42,800
» Yeah. To a degree, yes. So we have uh
three types of impact fees. And Marcy,

653
00:55:41,760 --> 00:55:47,119
you know better than this, so if I
misspe, throw something at me. Uh we

654
00:55:45,040 --> 00:55:52,319
have a a public safety impact fee, a
recreation impact fee, and a

655
00:55:48,240 --> 00:55:58,000
transportation impact fee. That was uh
only within the last I think three to

656
00:55:54,240 --> 00:56:02,000
four years when we put forth an impact
fee ordinance that the commission at the

657
00:55:59,920 --> 00:56:06,720
time approved and so there's a
calculation methodology to that. What

658
00:56:04,720 --> 00:56:11,200
has been under scrutiny more recently
that we rescended was the transportation

659
00:56:08,799 --> 00:56:14,559
impact fee the county already charges
and within that transportation impact

660
00:56:12,880 --> 00:56:18,480
fee there's a penelis county portion and
a city madiraa beach portion and then we

661
00:56:16,720 --> 00:56:24,480
were charging another transportation
impact fee on top of that. So, um I

662
00:56:22,000 --> 00:56:29,839
believe that that transportation impact
fee, um we're no longer charging, but

663
00:56:28,079 --> 00:56:34,720
the county when we are, we do have to
send the county that portion that the

664
00:56:33,119 --> 00:56:39,520
the county's portion of that that
belongs to them. We do that annually in

665
00:56:36,720 --> 00:56:43,599
October every year. That's report that
as a liability in our in our accounting

666
00:56:42,319 --> 00:56:47,040
system. So, we know this is not a
revenue, this is a liability. But all

667
00:56:45,440 --> 00:56:51,040
the other impact fees that we collect,
recreation, public safety, and then the

668
00:56:49,280 --> 00:56:55,280
transportation related impact fee that
we can keep, um, that is available, uh,

669
00:56:53,680 --> 00:56:57,119
for the city to spend.
>> Yeah.

670
00:56:55,680 --> 00:57:00,440
» And that's that number I showed you is
the true revenue.

671
00:57:04,319 --> 00:57:10,400
» Okay. So then even better, again, we
have capital needs in the future. What

672
00:57:08,720 --> 00:57:13,680
are funding sources? Impact fee fund
definitely is a funding source. A couple

673
00:57:12,319 --> 00:57:16,559
years ago, it wasn't as much because
we're just collecting, you know, a few

674
00:57:14,799 --> 00:57:22,240
hundred,000, but now it's it's adding up
to where we've got budgeted about 1.4

675
00:57:18,640 --> 00:57:26,319
million. Another one that we have
budgeted rather aggressively in the

676
00:57:23,839 --> 00:57:31,359
past, but never really it's have spent
as much as we've uh planned has been the

677
00:57:29,440 --> 00:57:35,520
local option sales tax fund. That's like
the penelli penny for panelis. So, you

678
00:57:33,680 --> 00:57:42,319
can see that fund balance, that actual
fund balance is 3.2 2 million as of

679
00:57:39,200 --> 00:57:46,960
fiscal year ended September 30, 2025.
That's that's not projected. That is

680
00:57:44,400 --> 00:57:55,359
actual remaining fund balance. Assets
minus liabilities.

681
00:57:49,680 --> 00:57:59,119
Uh and then we've got revenues in 2026.
That's the discretionary sir tax that

682
00:57:57,359 --> 00:58:03,119
penalty penny for penalis money that we
do collect. I believe we get that on a

683
00:58:01,280 --> 00:58:09,839
monthly basis.
Um, and then we've got some small

684
00:58:06,319 --> 00:58:16,799
capital related expenses, 182,000 year
to date in the lost fund.

685
00:58:13,440 --> 00:58:20,880
Then we've got budgeted next year for
27,765.

686
00:58:18,400 --> 00:58:26,400
And we did not have a long laundry list
of projects. We just have $100,000

687
00:58:23,680 --> 00:58:32,000
budgeted in 27 for expenses. So now
we're at budgeted of almost $4.4 $4

688
00:58:28,799 --> 00:58:38,000
million available for future projects in
the lost fund

689
00:58:34,640 --> 00:58:43,280
of which many or most capital projects
um do apply. So there are some minor

690
00:58:40,480 --> 00:58:46,400
restrictions um but for the most part
infrastructure improvements, government

691
00:58:44,880 --> 00:58:50,319
building improvements, public safety
vehicles, those are the main things that

692
00:58:48,319 --> 00:58:54,480
we can spend with lost fund dollars. And
so that fund balance has been increasing

693
00:58:52,319 --> 00:58:58,319
over time.
>> Andrew, I'm sorry. I I was trying to

694
00:58:56,640 --> 00:59:00,240
follow you and I I Could you tell me
what

695
00:58:59,440 --> 00:59:04,880
» page I'm on?
>> Yeah, sorry.

696
00:59:01,119 --> 00:59:08,319
» No problem. Page 60 of your uh packet
>> 60 of your packet, 58 of your um

697
00:59:07,359 --> 00:59:12,480
» Thank you. Sorry.
>> of your document.

698
00:59:10,160 --> 00:59:16,559
» So, this is this fund budget year fund
balance. I really like this. It shows

699
00:59:14,240 --> 00:59:20,160
you where we were historically. How much
money do we have in each of these funds?

700
00:59:18,799 --> 00:59:26,480
You can kind of say that's kind of your
fund balance like how much you know

701
00:59:22,480 --> 00:59:31,599
reserves um you know what's available in
it. You know what's available in it is

702
00:59:29,280 --> 00:59:35,440
whatever the balance was last year plus
revenues minus expenses this year and

703
00:59:33,599 --> 00:59:41,040
revenues minus expenses each year after
that.

704
00:59:37,599 --> 00:59:45,520
So those are those are
positive attributes and those capital

705
00:59:43,359 --> 00:59:52,480
intensive funds impact fee fund and the
lost fund that we do keep increasing our

706
00:59:48,319 --> 00:59:58,880
available fund balance in those funds.
Then we've got Marina fund another big

707
00:59:55,280 --> 01:00:04,240
winner thanks to Krabby and his team.
Uh that's been increasing 4.5 million.

708
01:00:02,079 --> 01:00:09,280
That's where uh fund balance net
position was in 2025 actual audit

709
01:00:07,760 --> 01:00:14,640
results
and then we just keep the marina fund

710
01:00:12,240 --> 01:00:19,839
keeps making money. So 1.5 million
yeartoate actual revenues 820,000

711
01:00:17,680 --> 01:00:25,040
yeartoate as of a couple weeks ago
expenses and then we're budgeting for

712
01:00:22,240 --> 01:00:30,240
more profit. We're budgeting 1.725
million of revenues and 1.379 million of

713
01:00:28,720 --> 01:00:35,119
expenses.
Why are those we expenses so high? We do

714
01:00:32,480 --> 01:00:38,880
have I believe the budgeted um capital
project. We'll dig into that in the

715
01:00:36,799 --> 01:00:46,000
capital improvement plan. I think that's
for the um the seaw wall or the the the

716
01:00:41,280 --> 01:00:53,280
docks uh the city hall docks. Yeah.
So now we're at 5.5 million um available

717
01:00:49,520 --> 01:00:59,680
in the marina fund.
Then uh then parking fund again um

718
01:00:57,280 --> 01:01:05,040
that's been that the parking fund only
began its existence I think three years

719
01:01:02,079 --> 01:01:09,520
ago in 2022 or three. It was all a part
of the general fund. Then we pulled it

720
01:01:06,480 --> 01:01:16,079
out to to uh report it separately in its
own fund. 5 million was available fund

721
01:01:13,119 --> 01:01:21,680
balance. Then we're adding 3.2 million
revenues to 1.5 expenses. That's actual

722
01:01:18,799 --> 01:01:28,400
year-to- date results. 3 point almost
3.2 2 3.3 million in um projected

723
01:01:25,680 --> 01:01:34,319
revenues, which looks conservative since
we're already at 3.2 million actual in

724
01:01:31,119 --> 01:01:39,200
26. So, barring another unforeseen storm
or incident that drives people away from

725
01:01:36,319 --> 01:01:46,720
the city of Mader Beach, um that's
probably a very um conservative estimate

726
01:01:42,319 --> 01:01:52,720
on the revenues for 2027.
And then only one and then 1.8 8 million

727
01:01:49,040 --> 01:01:57,760
of expenses um out of the parking fund.
So now we're at 8 million in fund

728
01:01:55,680 --> 01:02:03,680
balance net position in the parking
fund.

729
01:02:00,640 --> 01:02:07,599
So a 3 million deficit in the general
fund feels a lot better when I see those

730
01:02:05,760 --> 01:02:11,920
results in the parking fund, the marina
fund of which those are not restricted

731
01:02:09,119 --> 01:02:17,440
monies that are that we have to
restrict. I mean, those can be um

732
01:02:15,520 --> 01:02:23,040
transferred to the general fund to help
to help offset general fund expenses,

733
01:02:20,240 --> 01:02:29,440
but ideally, we want to build those
marina and parking fund reserves because

734
01:02:25,520 --> 01:02:34,559
we've got an ambitious long-term
capital improvement plan with various

735
01:02:31,200 --> 01:02:39,760
projects that those funds can help um
support ongoing debt service payments in

736
01:02:37,119 --> 01:02:44,960
the future if if and when we issue debt
for for various development efforts.

737
01:02:42,559 --> 01:02:49,280
So
money is there to that extent certainly

738
01:02:46,559 --> 01:02:55,440
in those two funds.
And then the last two um sanitation

739
01:02:52,640 --> 01:03:01,680
fund.
So again sanitation fund um since we're

740
01:02:59,359 --> 01:03:07,440
charging charging residents we don't
want to overcharge to help fund

741
01:03:03,119 --> 01:03:11,280
non-sanitation related expenses. Um that
is intended to be a bit of a break even

742
01:03:09,599 --> 01:03:16,720
analysis. We've actually been building
up our reserves in the sanitation fund

743
01:03:13,359 --> 01:03:22,480
more recently when we had enacted a fee
increase in I think fiscal year 22 um

744
01:03:20,240 --> 01:03:31,280
because we were operating at break even
or a deficit um previously. So we're at

745
01:03:26,720 --> 01:03:39,280
2.8 million actual net position and then
revenues and expenses 1.6 and 1.4 so

746
01:03:35,760 --> 01:03:45,599
far. Um which at 1.4 4 includes any
capital related out outlay. And then in

747
01:03:41,839 --> 01:03:50,079
27, we've got 2 million revenues and 2.4
million expenses. But that 2.4 and we

748
01:03:47,839 --> 01:03:54,880
can dig into the sanitation
uh revenue and expense detail if you

749
01:03:51,760 --> 01:03:59,039
like, but I we'll look into what what
comprises that number out of capital. So

750
01:03:57,359 --> 01:04:04,880
there are some vehicle replacements, I
believe, that that um contribute to that

751
01:04:02,000 --> 01:04:10,400
2.4 million expenses. But overall, we're
we've been trending nicely in sanitation

752
01:04:06,640 --> 01:04:17,680
fund and continue to do so.
And then storm water fund, 5.4 million

753
01:04:13,760 --> 01:04:24,240
ending fund balance. Um, a lot of that
is just is kind of your your your uh

754
01:04:21,359 --> 01:04:31,280
project costs that were capitalized. So
that's not like true cash. That's that's

755
01:04:27,119 --> 01:04:37,680
capitalized project costs. um 26
revenues so far, 578 million thousand,

756
01:04:35,119 --> 01:04:41,839
excuse me, compared to 4.3 million of
actual expenses. And that's a lot of the

757
01:04:39,599 --> 01:04:48,160
the storm water projects we've been
working on. And so again, this one is is

758
01:04:44,960 --> 01:04:54,319
more of the same 5.7 million budget and
revenues. And a lot of that revenue

759
01:04:49,760 --> 01:04:59,200
uptick is is um as uh grant funded
revenues. So getting different funding

760
01:04:57,280 --> 01:05:04,240
sources for some of our project our
storm water projects we're anticipating

761
01:05:01,280 --> 01:05:09,359
in fiscal year 27 and then there's your
7.5 million in expenses. Most of that is

762
01:05:07,200 --> 01:05:16,400
your project cost that we'll cover in
capital.

763
01:05:12,240 --> 01:05:23,760
» Andrew question um
as far as consultant fees how does that

764
01:05:18,960 --> 01:05:29,119
fit in this budget? How do you designate
consultant fees that we pay for design

765
01:05:25,920 --> 01:05:32,559
of let's say storm water?
>> Sure. So it depends on the nature of the

766
01:05:30,559 --> 01:05:37,839
consultant fee. If it's like to do a
study to in um evaluate options or

767
01:05:36,400 --> 01:05:41,920
alternatives that's typically an
operating expense that we would put in

768
01:05:39,440 --> 01:05:46,480
like professional services because it's
not tied to a specific project like a

769
01:05:43,920 --> 01:05:51,520
design or engineering plan. It's more
like an evaluation. Um it's so it's not

770
01:05:49,839 --> 01:05:56,079
capital, it's a piece of it's a
document. So it's not a fixed asset and

771
01:05:54,160 --> 01:06:01,200
it's not tied to a specific project
versus design and engineering work on a

772
01:05:59,440 --> 01:06:07,520
particular project. So that's going to
be like an infrastructure asset or a

773
01:06:03,520 --> 01:06:13,920
building improvement asset. Um that will
that will be would be capitalized and

774
01:06:10,880 --> 01:06:19,280
those particular consulting costs would
be a part of if you look at our account

775
01:06:16,799 --> 01:06:23,520
your account level detail would be a
part of capital improvement. And so

776
01:06:21,920 --> 01:06:27,039
you'd see that in your in your capital
costs as part of your capital

777
01:06:24,960 --> 01:06:31,680
improvement plan. And we would embed
those engineer professional engineer

778
01:06:29,440 --> 01:06:36,160
architectural design work. That's all
part of the the the capital project

779
01:06:34,160 --> 01:06:40,079
» and the grants that we receive is
somehow associated with that.

780
01:06:38,559 --> 01:06:44,640
» Yeah. And very important to know we
don't we wouldn't offset. So we would

781
01:06:42,240 --> 01:06:49,200
never reduce our expenses. We would
gross up whatever that grant revenue is.

782
01:06:46,720 --> 01:06:53,200
That's your revenues um compared to the
the uh expenses and those would be

783
01:06:51,440 --> 01:06:56,480
displayed separately. And that's a good
point. Why don't we actually go to this

784
01:06:54,880 --> 01:07:00,240
the
storm water fund and we can look at that

785
01:06:58,240 --> 01:07:09,720
just real quick.
And that's going to be on page

786
01:07:03,760 --> 01:07:09,720
57 of your packet 55 of your book.

787
01:07:20,400 --> 01:07:29,119
So um you can see
some of the the the non-recurring

788
01:07:27,200 --> 01:07:33,440
revenues. So the first two lines, one
storm water grant, the next Panelis is

789
01:07:30,880 --> 01:07:38,319
Penelis County. So I imagine the Penllis
County one for 1.485 million is like a

790
01:07:35,920 --> 01:07:42,319
JPA joint participation agreement that
we have with Penllis County. Megan Web

791
01:07:41,039 --> 01:07:47,520
could share with the details of the
actual project for that. So that's their

792
01:07:44,160 --> 01:07:53,039
involvement um in that for you know
whatever reason and we would get the we

793
01:07:50,160 --> 01:07:56,880
would get we would invoice Panelis
County for their share of the project

794
01:07:54,880 --> 01:08:02,559
work and we would absorb the entire
project cost pay those invoices and all

795
01:07:59,920 --> 01:08:06,240
those would go to a particular that
capital improvement we call it in the

796
01:08:04,240 --> 01:08:10,960
storm water fund most of that goes to
what's called the drainage and roadway

797
01:08:07,760 --> 01:08:20,719
improvement capital um related expense
that's on page 5 uh8 of your

798
01:08:17,199 --> 01:08:26,719
packet. Oh, sorry. It's at the way end
there. Page 59 of your packet. Page 57

799
01:08:23,600 --> 01:08:31,520
of the book.
You can see an expense here called

800
01:08:28,799 --> 01:08:37,839
404920056305
drainage and roadway improvement.

801
01:08:34,480 --> 01:08:44,000
And that's where we generally um budget
our capital related expenses in that one

802
01:08:40,799 --> 01:08:46,799
in that one account.
And then when you say, "Well, geez, how

803
01:08:45,359 --> 01:08:51,199
does if it all just goes to that
account, how do we know how much we're

804
01:08:48,239 --> 01:08:56,080
spending on area 3 versus area 5 versus
area 7?" We have a separate projects and

805
01:08:53,679 --> 01:09:00,719
grants module in our ERP, in our
accounting system that we tag those

806
01:08:58,719 --> 01:09:05,279
transactions that hit that GL account
and say, "Hey, it also relates to this

807
01:09:02,640 --> 01:09:09,679
project." So, we can run an annual or a
multi-year project report. And so we can

808
01:09:07,679 --> 01:09:15,920
see by project. Hey, show me for area
three. How much have we spent in 2024,

809
01:09:12,719 --> 01:09:21,600
2025, 2026, how much revenue have we
generated on a on a project by project

810
01:09:18,080 --> 01:09:26,159
basis, but we keep the accounting simple
uh for budgeting purposes. This that one

811
01:09:24,400 --> 01:09:31,440
account is inclusive of all of those
project costs.

812
01:09:29,199 --> 01:09:37,040
I just want to bring up at this time
originally when we were talking this I

813
01:09:33,839 --> 01:09:42,719
did not want to look at raising the
storm water storm water prices because I

814
01:09:40,319 --> 01:09:47,920
was not going to come into office and
say okay well yes let's raise this but I

815
01:09:45,600 --> 01:09:54,320
got an article and I just want to you
know from the paper on August 6 that

816
01:09:51,920 --> 01:09:59,280
city sewer bills in St. beat Beach Beach
could jump 64%. And I thought, well, big

817
01:09:57,120 --> 01:10:09,040
deal. But yet what they're paying right
now is $11059 a month and it's going to

818
01:10:03,520 --> 01:10:13,520
128. So for us going from 10 to $20 is
minimal. I mean, you know, so seeing all

819
01:10:11,600 --> 01:10:18,480
this information,
um, you know, it it's Madera Beach is

820
01:10:16,640 --> 01:10:26,280
still very cheap for their storm water
and let's kind of get back in line of

821
01:10:21,040 --> 01:10:26,280
getting this back in place.

822
01:10:28,960 --> 01:10:36,400
Yeah, we certainly in incur
incur costs in our storm water fund and

823
01:10:33,920 --> 01:10:42,400
storm water cannot be neglected
given just the the basic geography of

824
01:10:40,320 --> 01:10:48,239
where we're at. So
>> most of the increase in the funds are so

825
01:10:45,120 --> 01:10:53,920
that we can pay the debt service and
take that out of a debt service that the

826
01:10:50,719 --> 01:10:57,199
general fund has been paying for. Is
that correct?

827
01:10:55,440 --> 01:11:01,440
It helps and even with that we went
through the math together previously

828
01:10:59,440 --> 01:11:04,960
with our existing debt service and our
and our operating costs which included

829
01:11:03,280 --> 01:11:09,199
personnel and maintenance on the storm
drains and everything irrespective of

830
01:11:06,480 --> 01:11:13,280
capital. We're still not projected to be
quite there. I'll be curious when this

831
01:11:10,880 --> 01:11:18,159
when it the fee increase goes into
effect and and run analysis as we go

832
01:11:15,360 --> 01:11:22,560
through fiscal year 27 actual results
just how close we are. But we're not

833
01:11:20,880 --> 01:11:28,480
we're getting better. So we're certainly
closer to that. Um, but we're not quite

834
01:11:26,320 --> 01:11:34,560
covering all of our operating and debt
service costs even with this increase.

835
01:11:30,719 --> 01:11:38,760
More reason I feel it's necessary.
>> Oh, please join.

836
01:11:39,600 --> 01:11:45,360
» You are doing such a great job.
>> I mean, I need a break. So, thank you.

837
01:11:43,520 --> 01:11:48,480
» Good afternoon, everyone. I think um,
Commissioner Kavahi, I think what you

838
01:11:46,960 --> 01:11:52,880
were asking about was the professional
services in the storm water. That

839
01:11:51,360 --> 01:11:59,520
$235,000
is for the VA and the AP grant that we

840
01:11:55,840 --> 01:12:05,199
received from FT. So, as Andrew stated,
the revenue is shown on the revenue and

841
01:12:03,120 --> 01:12:09,199
outflow, but then we have to show the
cost

842
01:12:06,880 --> 01:12:15,679
on on the professional services side.
So, we have $250,000 budgeted for 26.

843
01:12:13,040 --> 01:12:21,840
The whole project was $485,000
which is a complete 100% reimbursement

844
01:12:18,159 --> 01:12:28,000
but it's going to flow into 27.
>> So when you budget

845
01:12:25,040 --> 01:12:32,400
for a professional fee for a
professional services

846
01:12:30,480 --> 01:12:36,960
all the consultants know what the budget
is, right?

847
01:12:34,080 --> 01:12:40,560
» So we received a full 100% grant for
this. So I think we're talking about two

848
01:12:39,120 --> 01:12:44,920
separate things. It depends on the
project.

849
01:12:41,920 --> 01:12:44,920
Yeah,

850
01:12:45,760 --> 01:12:53,920
the the only concern I have is I mean I
understand what you just said, but one

851
01:12:50,880 --> 01:12:58,880
of my concerns with budgeting certain
professional fees is that all the

852
01:12:57,440 --> 01:13:03,040
consultants are going to look at the
budget. and say, "Oh, you know, they've

853
01:13:01,040 --> 01:13:10,560
budgeted this much money for these
services, so let's just reduce our fees

854
01:13:06,159 --> 01:13:18,400
by 10% and, you know, 10% less than the
budget and um propose that to you and,

855
01:13:15,040 --> 01:13:21,400
you know, there's just just really not a
uh

856
01:13:21,440 --> 01:13:29,040
in my opinion, not the best way to to
get competitive fees,

857
01:13:27,360 --> 01:13:34,400
» professional services, and I can speak
only for my department. Um, typically in

858
01:13:31,520 --> 01:13:38,800
that budget, I have just money just in
case I need engineering on a failed

859
01:13:36,560 --> 01:13:45,760
storm drain or something along those
lines. So, often times I don't 100% have

860
01:13:42,080 --> 01:13:51,280
a set budget for design fees. Um, it's
built in within a whole entire project.

861
01:13:48,880 --> 01:13:57,760
So for we talked about the pocket parks
and and the Bokea neighborhood. I did

862
01:13:54,400 --> 01:14:01,760
not have a plan to have a consultant
engineering fee for that. That just came

863
01:14:00,000 --> 01:14:05,600
out of my complete overall budget.
>> Yeah. Small things I don't worry about.

864
01:14:03,199 --> 01:14:11,679
It's the big big ticketed items that I
worry about like couple hundred,000 or

865
01:14:08,880 --> 01:14:15,679
half or whatever for you know whatever
project. That's that's what I am

866
01:14:13,600 --> 01:14:21,199
concerned with. So
>> I think where the challenge comes in in

867
01:14:17,440 --> 01:14:25,280
that, if I may, is that we are a
government agency and so we have to be

868
01:14:23,520 --> 01:14:29,440
transparent and everything has to be in
the sunshine. So before Megan can take

869
01:14:27,840 --> 01:14:35,520
something out to bid, she has to bring
it to us and she has to ask for

870
01:14:31,280 --> 01:14:43,280
approval. So there's really not a way to
not tell it. However, um I also don't

871
01:14:40,080 --> 01:14:50,000
think that that would be my experience
just thinking about bids in general that

872
01:14:46,239 --> 01:14:54,640
we've gotten and they come in all over
the place.

873
01:14:50,880 --> 01:14:59,440
» The Valve grant is a great we they asked
during the bid process before the bids

874
01:14:56,880 --> 01:15:07,679
were due what my budget was. My budget
was $200,000. I received one bid out of

875
01:15:04,080 --> 01:15:13,199
seven, I believe, that was within $6,000
of my my project. Everything else was

876
01:15:10,000 --> 01:15:17,120
well over $100,000 more. So, I think
sometimes people do ask because

877
01:15:15,520 --> 01:15:22,880
obviously if we don't have the budget
for it, then they're not going to waste

878
01:15:19,679 --> 01:15:28,239
their time nor waste our time or even
bid because that process is quite

879
01:15:25,040 --> 01:15:33,600
lengthy. So it it totally is dependent
on the project on what you're looking to

880
01:15:30,320 --> 01:15:36,960
do. I understand what you're saying,
>> but it is hard to not have a budget if

881
01:15:36,000 --> 01:15:43,360
they ask for it.
>> Well, can that be a part of let's say

882
01:15:39,120 --> 01:15:53,719
general fund budget? In other words, can
we not draw consultant fees out of a

883
01:15:48,800 --> 01:15:53,719
general fund fund budget

884
01:15:53,920 --> 01:16:02,320
and not have to say, "All right, we're
going to be building this road.

885
01:15:59,520 --> 01:16:06,320
Let's budget $300,000 for the consultant
fees."

886
01:16:04,560 --> 01:16:12,640
and then let everybody know that we're
ready to spend $300,000 on the

887
01:16:09,280 --> 01:16:17,760
consultant fees. Um if if we can just
say, "All right, let's just put this

888
01:16:14,239 --> 01:16:24,880
much money in the budget and then in in
a general general fund and then let the

889
01:16:21,679 --> 01:16:34,080
consultants have that competitive fee,
whatever that may be, to present to us."

890
01:16:28,880 --> 01:16:38,080
Are you are you talking about the actual
construction cost? Are you look No,

891
01:16:36,239 --> 01:16:44,480
you're talking about just the
consultants. Well, consultant uh

892
01:16:40,719 --> 01:16:49,360
contracts are not based upon price.
They're based upon qualifications. Once

893
01:16:47,360 --> 01:16:55,760
you get that qualifications in and we
select the top one, then we go into a

894
01:16:52,400 --> 01:17:01,440
negotiation for unit pricing. So what we
would do is we would we would um

895
01:16:58,400 --> 01:17:07,600
negotiate what the you the rates are for
the professionals. Once the rates of the

896
01:17:03,840 --> 01:17:13,840
professionals are then set, we go into
an effort-based analysis. Meaning here's

897
01:17:11,199 --> 01:17:18,880
the five scope of work or five tasks we
need you to do. I'll give us a price on

898
01:17:16,000 --> 01:17:24,480
that. Once we get to that price, we
negotiate again. Maybe they have it too

899
01:17:21,520 --> 01:17:31,120
much in one area or not. So then we try
to get down to where we feel is the best

900
01:17:27,760 --> 01:17:36,080
price. If we can't, we throw them out
and we go to the next one.

901
01:17:33,440 --> 01:17:41,440
» But we also have contracts with many
different consultants so that we do not

902
01:17:38,480 --> 01:17:46,560
have to go out to bid dependent on the
size of the project. So same same

903
01:17:44,480 --> 01:17:50,880
process as Mike just stated, but we
don't have to go out to bid again. We

904
01:17:48,960 --> 01:17:55,760
already have them under contract. We
also know what their disciplines are.

905
01:17:52,880 --> 01:18:01,360
Not all cons consulting firms specialize
in transportation or specialize in road

906
01:17:58,080 --> 01:18:05,280
projects or or storm drain or or Marcy
needs, you know, many different planning

907
01:18:03,199 --> 01:18:10,080
studies or whatever it may be. So, it's
all there's a lot of different factors

908
01:18:07,679 --> 01:18:14,560
when it comes into selecting a
consultant for a project. We have many

909
01:18:13,440 --> 01:18:17,920
different projects.
>> I think I know exactly what you're

910
01:18:16,000 --> 01:18:22,320
talking about. having the public know
exactly how much money we are and I

911
01:18:20,480 --> 01:18:26,800
think it would be a great idea to
discuss it but not at this point. I

912
01:18:24,719 --> 01:18:31,520
mean, you know, I think like you say,
all of our projects if we have a fund

913
01:18:29,520 --> 01:18:37,679
and it maybe say put a million dollars
in for work related to projects that

914
01:18:35,120 --> 01:18:42,640
need to be come up and that would be I
think a different discussion. You know

915
01:18:39,920 --> 01:18:47,280
that Yeah. I because just like uh
Crystal Island project, we said we got

916
01:18:44,560 --> 01:18:52,000
$15 million for that project. Well, of
course, all your bids are going to be

917
01:18:48,560 --> 01:18:57,199
coming in around $15 million. So that's
what I believe you're trying to

918
01:18:55,120 --> 01:19:03,040
keep.
But but it's like we still have to be

919
01:18:59,760 --> 01:19:07,840
open book. So we have Yes. So
>> we have a budget.

920
01:19:04,400 --> 01:19:09,840
» It's listed. Everyone asks. We can't not
give them the information that they

921
01:19:09,280 --> 01:19:15,840
asked for.
>> And this is because this is becoming a

922
01:19:13,600 --> 01:19:20,000
greater conversation today. We're
talking about budgets. If you want to

923
01:19:17,440 --> 01:19:25,840
drill down on how we go about getting a
bid, that's a completely different

924
01:19:23,520 --> 01:19:28,960
conversation than today because that
would be a conversation when we get

925
01:19:27,440 --> 01:19:33,920
ready to take something out to bid to
try to scrutinize it. Today, we just

926
01:19:30,960 --> 01:19:40,640
need to try to get through the budget
because the budget's the budget. How

927
01:19:35,760 --> 01:19:45,600
they bid is is not budgetary related.
>> Yeah. Thank you. No, it definitely will

928
01:19:42,960 --> 01:19:50,560
be eventually, but I think you know down
the line and where potentially a

929
01:19:47,679 --> 01:19:54,880
workshop or Yeah. How not today. Yeah.
If we can indeed kind of keep the money

930
01:19:53,360 --> 01:19:58,239
that we have closer to the
>> No, I I wasn't trying to solve problems

931
01:19:56,800 --> 01:20:06,560
today. I was just trying to really
understand, you know, the mechanism

932
01:20:02,000 --> 01:20:11,600
as to how we get competitive. So, can I
recommend that you make an appointment

933
01:20:09,199 --> 01:20:15,840
to sit with Megan and the city manager
and have that discussion because you

934
01:20:14,080 --> 01:20:19,360
could really dig into a discussion with
the two of them and I think that would

935
01:20:17,360 --> 01:20:20,960
be helpful for you and for them.
>> Yeah, more than happy to.

936
01:20:20,480 --> 01:20:26,320
» Okay.
>> There's there's state state statutes

937
01:20:23,679 --> 01:20:31,600
that we have to abide by when you start
to to procure uh professional services

938
01:20:29,600 --> 01:20:34,480
and that's really what is running it.
>> Yeah.

939
01:20:33,280 --> 01:20:38,640
» Yeah.
>> Thank you. Any

940
01:20:37,199 --> 01:20:42,960
other questions on anything I covered?
If not, I'm just going to finish with

941
01:20:40,480 --> 01:20:48,920
our five-year capital improvement plan.
We can just walk through that uh real

942
01:20:44,719 --> 01:20:48,920
quick and then go ahead.

943
01:20:49,360 --> 01:20:59,760
» Um it just I probably just need to be
explained in the on page in the P not

944
01:20:54,960 --> 01:21:05,280
the packet the the documents page 58.
uh going into 59 maybe the budget year

945
01:21:03,440 --> 01:21:09,679
fund balance
uh we have the 20 27 ending budgeted

946
01:21:07,760 --> 01:21:13,600
fund balances for those different
departments but then when I look down at

947
01:21:11,600 --> 01:21:19,040
the narrative
uh there's there's a couple that aren't

948
01:21:16,800 --> 01:21:25,120
that don't line up that they're not the
same like on page 58 shows the general

949
01:21:21,840 --> 01:21:32,560
fund has a million737904
but in the narrative it says million7282

950
01:21:29,199 --> 01:21:37,520
288. Uh, and is that supposed to be the
same number? And the same thing with the

951
01:21:34,960 --> 01:21:41,760
marina fund, parking fund, and building
fund. They have discrepancies in the

952
01:21:40,159 --> 01:21:47,600
narrative
compared to the chart. Am I meeting am I

953
01:21:44,640 --> 01:21:51,760
reading that wrong? I must just
>> um So, let's talk. So, general fund, it

954
01:21:49,520 --> 01:21:57,920
says the FY27 budgeted ending fund
balance declines from the FY25 ending

955
01:21:54,880 --> 01:21:59,840
balance of 18,987 389. that sentence
that that paragraph.

956
01:21:59,199 --> 01:22:07,440
» Yes.
>> Okay. So, the 18987 389

957
01:22:04,480 --> 01:22:13,120
is the 2025 fund balance.
>> Wait, sorry. The 18

958
01:22:10,159 --> 01:22:18,320
I'm not I'm not I'm not I'm not saying I
don't think we're on the same place.

959
01:22:14,400 --> 01:22:22,080
Okay. Yeah. The 18.
It's the

960
01:22:20,400 --> 01:22:28,800
» You look at it.
>> I Yeah, I've got it. I got it right

961
01:22:23,679 --> 01:22:36,239
here. So in in the chart get the G is it
did I say general fund general fund uh

962
01:22:32,480 --> 01:22:38,719
the 2027 ending budgeted fund balance.
>> Mhm.

963
01:22:36,880 --> 01:22:42,520
» Says
it's 1 1,737904.

964
01:22:42,560 --> 01:22:51,600
Am I reading? Is it right?
>> No. Yeah. But then in the narrative

965
01:22:48,960 --> 01:22:57,600
which is the next page it says
significant changes general fund uh 1

966
01:22:55,520 --> 01:23:02,000
million728
288. It's close here.

967
01:23:00,159 --> 01:23:06,560
» So your question that $6,000 difference
that could be an actual result that

968
01:23:04,880 --> 01:23:09,760
maybe came in. I had the narrative there
and then it didn't get updated for

969
01:23:07,840 --> 01:23:13,280
something. I can check on that.
>> Oh okay. So it's all right. Would you

970
01:23:11,679 --> 01:23:19,040
would you check also marina fund,
parking fund and building fund? bills

971
01:23:16,320 --> 01:23:24,639
have the other ones line up
but I just was desperately trying

972
01:23:22,639 --> 01:23:28,239
» the 1 million in the narrative the 1
million728

973
01:23:26,639 --> 01:23:31,960
288
compared to the 1,737

974
01:23:33,120 --> 01:23:39,840
» 904 so about 9,000 that $9,000
difference

975
01:23:37,280 --> 01:23:47,199
» and then Marina is 5 there's a big one
in the marina 5 million 590 544 and in

976
01:23:43,920 --> 01:23:50,360
the narrative it says 8 million in
uh 804714.

977
01:23:50,800 --> 01:23:55,280
So that's a bigger
>> Yep. I'll check on that.

978
01:23:53,520 --> 01:24:01,760
» And
I just was noticing as we're going

979
01:23:57,040 --> 01:24:06,400
through here, parking fund is uh 8,94
387 and then it's just less of a

980
01:24:04,239 --> 01:24:12,000
difference there. 8,93
767 and same with the building fund. Not

981
01:24:10,320 --> 01:24:15,520
that much difference. The biggest one is
the marina. And I just those should be

982
01:24:14,239 --> 01:24:20,320
the same, shouldn't they?
>> Yeah, in theory. Yes. So I might have

983
01:24:17,840 --> 01:24:24,639
rerun the because the analysis the act
the 26 actuals are continually changing.

984
01:24:23,760 --> 01:24:30,480
» Okay. All right.
>> So maybe the last time I updated that

985
01:24:26,800 --> 01:24:32,639
table the significant changes narrative
didn't update.

986
01:24:31,040 --> 01:24:35,040
» I got you. Okay. I just I'm struggling
to hang on here. So I want to make sure

987
01:24:34,320 --> 01:24:40,880
I understand.
>> That's I love I love the attention to

988
01:24:36,880 --> 01:24:44,880
detail. I'm proud of you.
>> Thank you.

989
01:24:43,679 --> 01:24:47,040
I've got
>> I've got one little one.

990
01:24:46,639 --> 01:24:51,760
» Okay.
>> The backend parking fee. Did we get rid

991
01:24:49,440 --> 01:24:54,239
of that?
>> Yes, we did.

992
01:24:54,000 --> 01:24:59,120
» Okay.
>> That is I mean,

993
01:24:56,639 --> 01:25:02,400
» as I see all of this in here, you know,
it's it's just like we have it, then we

994
01:25:01,199 --> 01:25:05,040
lose it, and then
>> But that's not in the budget. That's in

995
01:25:04,000 --> 01:25:07,360
the fee schedule.
>> Yeah.

996
01:25:05,679 --> 01:25:12,239
» But that's part of the budget.
>> We did not budget for back in back-end

997
01:25:09,520 --> 01:25:15,440
parking. I think the parking manager
could attest. It's only if we see Chuck

998
01:25:14,000 --> 01:25:21,000
Dylan's car backed in, we're going to
take it.

999
01:25:16,639 --> 01:25:21,000
» All All others are exempt.

1000
01:25:22,400 --> 01:25:28,040
» Yeah, we don't we don't budget for uh
fines.

1001
01:25:30,719 --> 01:25:39,360
» But isn't that in the fee schedule? The
fee schedule, there is a fine in that

1002
01:25:36,639 --> 01:25:45,120
fee schedule. But when we look at
revenue, we're not estimating what the

1003
01:25:43,040 --> 01:25:52,560
revenue from
uh tickets are.

1004
01:25:48,800 --> 01:25:56,520
» Okay. We're just take Yeah, we have if
you look at the parking fund,

1005
01:25:56,880 --> 01:26:06,159
we have we're just looking at it's on
page 49 of the book 51 of the packet

1006
01:26:04,239 --> 01:26:09,760
just all the revenues and the parking.
We just have one line item called

1007
01:26:07,600 --> 01:26:13,679
parking fines that includes a variety of
different things and we basically budget

1008
01:26:11,760 --> 01:26:17,920
that just based on looking at trends and
we can might take in effect take into

1009
01:26:15,440 --> 01:26:22,880
account some increases around that but
we just look at you can see it was

1010
01:26:19,920 --> 01:26:30,080
budgeted 550,000
in um 2026

1011
01:26:26,560 --> 01:26:37,440
and budget now at 525,000. So modestly
in line with what we had in in 206

1012
01:26:34,480 --> 01:26:44,760
budget 206
actual year to date. Let's take a look.

1013
01:26:41,040 --> 01:26:44,760
Let's pull that up.

1014
01:26:44,800 --> 01:26:51,840
See how hard
Jamal and his team have been working.

1015
01:26:49,360 --> 01:26:57,600
» That is not I don't think that that is
the proper verbiage we should be using.

1016
01:26:56,719 --> 01:27:03,920
Strike that from the record.
>> That's a terrible mindset in my view.

1017
01:27:02,239 --> 01:27:10,639
» Strike that from the record. Let's see
the results of the infractions in fiscal

1018
01:27:07,199 --> 01:27:13,639
year 2026 thus far. And that is at
$672,287

1019
01:27:15,360 --> 01:27:25,840
year to date in 26. So, I'd say 525,000
as an estimate for budget revenue in 27

1020
01:27:24,159 --> 01:27:31,600
is conservative to say the least.
>> So, if our parking fines keep going up,

1021
01:27:29,040 --> 01:27:37,520
then we might need to spend some time in
discussion on how to better educate our

1022
01:27:34,560 --> 01:27:43,520
visitors before we're writing so many
tickets. Because to see an increase of

1023
01:27:39,840 --> 01:27:48,400
that large of a number in parking fines
to me says, are you really a friendly

1024
01:27:46,080 --> 01:27:52,800
community or are you a community that's
looking to write a ticket the minute I

1025
01:27:50,000 --> 01:27:56,880
walk away from my car or if I'm 10
minutes late to my car? So, I think that

1026
01:27:54,719 --> 01:28:02,000
is definitely a discussion for a
workshop in the future to decide what's

1027
01:27:59,840 --> 01:28:05,000
more important to us.
>> Yep.

1028
01:28:06,000 --> 01:28:11,760
» Perfect. Any other questions on anything
we've covered or am I you would you

1029
01:28:09,760 --> 01:28:14,960
going to good with me wrapping up on
capital?

1030
01:28:13,360 --> 01:28:21,120
Perfect. And we will I will look at
those good catch on the um fluctuation

1031
01:28:19,440 --> 01:28:27,679
analysis and I'll I'll look at those
numbers for sure.

1032
01:28:24,639 --> 01:28:33,120
Okay. Then capital is going to be on
page

1033
01:28:30,639 --> 01:28:37,360
um
shoot I just had it. Okay. Okay. It's on

1034
01:28:35,040 --> 01:28:43,320
page
79 of the book, 81 of your packet.

1035
01:28:50,320 --> 01:28:57,840
So, we it's just starts with a a the
five-year capital improvement plan. Just

1036
01:28:55,760 --> 01:29:03,199
some narrative overview of the program.
What is a capital expenditure? We talked

1037
01:28:59,679 --> 01:29:09,440
about that. an an any asset with an
initial cost of $5,000 or more and

1038
01:29:06,159 --> 01:29:15,520
useful life of two or more years. It
could be a physical piece of equipment

1039
01:29:12,320 --> 01:29:21,280
or vehicle or it could be a
infrastructure improvement to an

1040
01:29:17,920 --> 01:29:25,199
existing asset.
And then just gives you some narrative

1041
01:29:22,719 --> 01:29:30,080
highlights. Storm water infrastructure,
marine and waterfront, we talked about

1042
01:29:26,880 --> 01:29:35,040
that. City Hall dock construction budget
$400,000 through the Marina Fund will

1043
01:29:33,360 --> 01:29:40,920
improve waterfront access and support
the city's marine operations and public

1044
01:29:36,880 --> 01:29:40,920
use of the city hall waterfront.

1045
01:29:43,360 --> 01:29:48,159
Then sanitation. We talked about some of
the costs that we saw in the fund

1046
01:29:46,719 --> 01:29:53,840
balance net position analysis for
sanitation. So we've got 400,000 for

1047
01:29:51,120 --> 01:29:59,600
replacement of unit 26, the 2020
Kenworth T880 solid waste vehicle.

1048
01:29:57,679 --> 01:30:05,120
Maintaining a reliable fleet is
essential to un uninterrupted solid

1049
01:30:01,920 --> 01:30:12,639
waste collection service for residents.
Then we do some highlights of future

1050
01:30:07,440 --> 01:30:17,960
fiscal years 28, 29, 30, and 31.
So when you do highlights, Andrew, um

1051
01:30:18,960 --> 01:30:27,120
that's just for somebody to read because
the 2028 highlights are not that's not

1052
01:30:24,639 --> 01:30:32,320
something we're going to do. Um we
talked about that in a previous meeting

1053
01:30:30,239 --> 01:30:35,840
because until we do something with
parking, we're not building anything

1054
01:30:34,000 --> 01:30:40,639
else at Rock Park. It would be there'
just be no way. They're struggling now

1055
01:30:38,320 --> 01:30:46,480
with parking for the events that they
have. I'm only saying that because I

1056
01:30:43,360 --> 01:30:52,239
don't want anybody to say that we agreed
to do what these highlights are for 2028

1057
01:30:49,600 --> 01:30:55,360
because I think they're very inaccurate.
>> We can go through those before the um

1058
01:30:54,719 --> 01:30:57,920
» final
>> before the final.

1059
01:30:56,320 --> 01:31:02,960
» I think we should I think that
>> we'll do a better idea. Yeah, I think it

1060
01:31:00,960 --> 01:31:09,760
should align more with what we discussed
in the strategic planning um for for

1061
01:31:07,280 --> 01:31:13,760
anyone who's reading it to have a vision
of what the commission is thinking and

1062
01:31:11,760 --> 01:31:19,520
what the city's working towards.
>> Yes. And it's also a good place if we're

1063
01:31:16,800 --> 01:31:24,159
looking at grants. We need to have those
in our future. Uh

1064
01:31:22,320 --> 01:31:28,800
» I'm not saying I want it to go away
because I know that if we were going to

1065
01:31:26,960 --> 01:31:32,719
do something like this, if we were going
to build these projects, you would want

1066
01:31:30,400 --> 01:31:35,760
to have them so that they could be shown
to the grant, you know, that we were

1067
01:31:34,400 --> 01:31:40,880
applying for that we've we've been
talking about it. But there's no way

1068
01:31:38,159 --> 01:31:46,480
that we would start this in 2028 because
we need parking to be addressed prior to

1069
01:31:43,520 --> 01:31:51,280
being able to start the idea of building
um a new structure. And if something ma

1070
01:31:49,600 --> 01:31:57,040
miraculous happened and we were able to
build a parking garage or or or

1071
01:31:53,920 --> 01:32:01,760
reimagine parking or whatever we do for
parking at Rock Park for, you know, we

1072
01:31:59,440 --> 01:32:07,040
could do that in the next year and then
you could do that in 2028. That'd be

1073
01:32:03,760 --> 01:32:10,960
fantastic. But it seems highly unlikely
that we would be able to fund that.

1074
01:32:09,600 --> 01:32:14,239
» And it says that it was going to be
funded from the loss fund. And the loss

1075
01:32:12,560 --> 01:32:18,560
fund is going to not have any money in
it in 28.

1076
01:32:16,560 --> 01:32:23,120
» It'll be broke.
>> Yeah. We'll we'll go through those

1077
01:32:19,920 --> 01:32:29,760
before the next meeting.
And then on the next page 81 of the

1078
01:32:25,040 --> 01:32:33,600
book, 83 of the packet,
there could be questions either from you

1079
01:32:31,440 --> 01:32:38,719
all or from residents or both like,
well, we bought the $18 million

1080
01:32:36,000 --> 01:32:43,440
property. What why is or no development
plans? And so we have a specific

1081
01:32:40,480 --> 01:32:47,520
paragraph that addresses that that 555
avenue vacant waterfront property. I'll

1082
01:32:46,000 --> 01:32:50,560
just read it. City's 5-year capital
improvement plan does not include any

1083
01:32:48,800 --> 01:32:56,080
capital expenditures relating to the
development of the 4.6 6 acre vacant

1084
01:32:53,360 --> 01:32:59,920
waterfront property acquired at 555th
Avenue. City is still in the early

1085
01:32:58,159 --> 01:33:03,840
stages of its planning process and has
not yet developed concrete conceptual

1086
01:33:01,679 --> 01:33:07,760
design plans or realistic estimate of
development costs. Given the scope and

1087
01:33:06,400 --> 01:33:11,440
significance of the property, it would
be premature to budget capital

1088
01:33:09,280 --> 01:33:15,600
expenditures at this time without a
well- definfined and costed plan. Should

1089
01:33:13,840 --> 01:33:19,600
any capital expenditures relating to the
development of this property become

1090
01:33:16,880 --> 01:33:22,960
necessary during FY2027,
a budget amendment can be formally

1091
01:33:21,199 --> 01:33:29,320
approved and adopted by the board of
commissioners at that time.

1092
01:33:25,360 --> 01:33:29,320
Any concerns with that disclaimer?

1093
01:33:29,760 --> 01:33:37,840
Perfect. Okay.
And then this just kind of goes through

1094
01:33:35,760 --> 01:33:40,840
your your capital year improvement plan
schedule.

1095
01:33:43,840 --> 01:33:55,040
with 24 actual, 25 actual, 27 budget, 26
budget, current year CIP by fund. You

1096
01:33:52,000 --> 01:34:00,159
see very light except for the storm
water on a fund by fund basis. Just a

1097
01:33:58,719 --> 01:34:04,719
couple, you know, projects here and
there and then mostly vehicle and

1098
01:34:02,239 --> 01:34:11,760
equipment purchases.
And then the five-year capital plan

1099
01:34:07,600 --> 01:34:15,440
shows the fund and then the project and
then what year it's hitting. And

1100
01:34:13,760 --> 01:34:20,639
obviously there's nothing of form as we
discussed formally budgeted in 2029

1101
01:34:17,760 --> 01:34:25,199
30331. That's just plan that doesn't
it's not binding or in any way or you're

1102
01:34:23,600 --> 01:34:29,040
not appropriating money for those future
fiscal years. That's done annually

1103
01:34:27,120 --> 01:34:33,360
through the adoption of the budget. So
that's justformational only. But to the

1104
01:34:30,960 --> 01:34:38,400
city manager's point, we can look at
some projects that

1105
01:34:35,920 --> 01:34:44,960
at least if they're under question or
scrutiny, then we can remove to dis, you

1106
01:34:41,920 --> 01:34:52,760
know, remove any potential confusion or
or

1107
01:34:46,960 --> 01:34:52,760
um concern from the public.

1108
01:34:53,679 --> 01:35:01,280
And I we've been through this before. we
had a a a capital specific

1109
01:34:59,280 --> 01:35:05,679
budget workshop, but I know it's been a
few months. So, um

1110
01:35:04,320 --> 01:35:08,920
just wanted you all to be able to see
that again.

1111
01:35:13,920 --> 01:35:19,440
And that's all I have officially planned
is if there's any questions on capital,

1112
01:35:17,360 --> 01:35:24,800
I'll take them or any other section of
the document. I know, like I said, we've

1113
01:35:21,600 --> 01:35:31,360
got a lot of different a lot of added
material on

1114
01:35:27,040 --> 01:35:36,000
fund descriptions, strategic priorities,
um, community profile,

1115
01:35:33,920 --> 01:35:40,000
all of our main policies, all our
financial policies,

1116
01:35:38,080 --> 01:35:44,400
what's a budget balance, our purchasing
ordinance, our investment policy, cash

1117
01:35:42,719 --> 01:35:49,520
receiping, handling policy, capital
assets policy,

1118
01:35:46,560 --> 01:35:54,320
grant management policy, our budget
process, goes through all the different

1119
01:35:51,120 --> 01:36:03,159
workshops and what we covered. Um and
then the the um the budget calendar with

1120
01:35:58,080 --> 01:36:03,159
the two public um public hearings

1121
01:36:03,840 --> 01:36:12,000
detail on FTEES, personnel costs, and
then a whole section on department

1122
01:36:09,600 --> 01:36:15,920
program goals and objectives broken out
by departments. all your general fund

1123
01:36:14,000 --> 01:36:19,600
departments
showing accomplishments, goals, and

1124
01:36:17,760 --> 01:36:23,560
objectives.
A whole section on that.

1125
01:36:25,040 --> 01:36:31,199
So, happy reading on on something
reading something other than numbers.

1126
01:36:29,199 --> 01:36:35,600
We've got
a lot of narrative descriptions on

1127
01:36:32,719 --> 01:36:39,639
things as well
and even performance measures.

1128
01:36:42,560 --> 01:36:48,960
Commissioners, do you have any questions
or comments?

1129
01:36:46,320 --> 01:36:53,360
» Very well put together, nicely, very
detailed. Thank you.

1130
01:36:50,480 --> 01:36:58,880
» Thank you.
>> I've got one. I believe we've got two

1131
01:36:55,840 --> 01:37:03,760
more. So, are we going to do it be two
more discussions on this and the final

1132
01:37:01,600 --> 01:37:07,280
votes going to be September 18th, I
believe.

1133
01:37:05,360 --> 01:37:13,119
So that'll be Yeah, let's actually go to
that page just so you can see

1134
01:37:10,480 --> 01:37:20,239
that's going to be on page I just passed
it. The the budget process is on page 97

1135
01:37:16,400 --> 01:37:24,080
of the book 99 of the packet.
This just gives you an overview of how

1136
01:37:22,159 --> 01:37:30,119
the budget works. What's the process?
Gives you a budget calendar. So those

1137
01:37:26,560 --> 01:37:30,119
are your two dates.

1138
01:37:30,400 --> 01:37:36,480
Clara, hopefully I'm not inaccurate on
that. We got September 9, 2026 at 5:45

1139
01:37:35,920 --> 01:37:40,719
p.m.
>> Correct.

1140
01:37:37,040 --> 01:37:43,199
» And then September 18, 2026 at 5:05 p.m.
Those will be the two um

1141
01:37:42,320 --> 01:37:47,520
» budget meetings,
>> the two special meetings where you'll

1142
01:37:45,360 --> 01:37:52,239
approve the adoption of the millage rate
at 2.75 mills, the same it's been for

1143
01:37:49,840 --> 01:37:55,920
the last 6 plus years, and then the
approval of this uh tenative budget

1144
01:37:54,560 --> 01:38:02,400
book, and then the final will be the
adopted budget book.

1145
01:37:58,000 --> 01:38:04,560
I expect that to be um a very uneventful
evening that

1146
01:38:03,760 --> 01:38:08,159
» right after
>> it's just going to be a quick two to

1147
01:38:06,639 --> 01:38:12,560
five minutes but please so if there's
anything that you might suggest you want

1148
01:38:10,719 --> 01:38:17,600
to bring up concerns
>> I'm trying to clarify that because

1149
01:38:14,080 --> 01:38:22,159
everybody just got their tax statements
or if they haven't gotten them they

1150
01:38:19,360 --> 01:38:26,800
should be getting them so the millage
rate is not planning on changing

1151
01:38:24,639 --> 01:38:30,239
» not planning on changing correct if we
wanted to increase the miller rate at

1152
01:38:28,320 --> 01:38:34,239
this time. It would be a huge
administrative undertaking of resending

1153
01:38:32,400 --> 01:38:39,040
out trim notices and that that's not
good. Anyways, but

1154
01:38:36,719 --> 01:38:43,600
» just some some comments I've I wrote
down as we're going on. Appreci I I do

1155
01:38:42,000 --> 01:38:49,280
like the narratives at the end of the
charts. I respond I just respond a

1156
01:38:46,880 --> 01:38:52,400
little better to words than numbers. I
guess

1157
01:38:49,600 --> 01:38:57,440
» the analysis. Yep. Nice. So, uh I I
appreciate the uh

1158
01:38:55,119 --> 01:39:01,520
that this budget is starting to look
more normal with the exception of a

1159
01:38:59,280 --> 01:39:06,880
couple of uh departments after the
hurricane. We're looking at something

1160
01:39:03,440 --> 01:39:09,840
that's uh normal operations somewhat.
We're getting back to that. That was

1161
01:39:08,239 --> 01:39:13,600
nice to see. And that we're
acknowledging future risks rather than

1162
01:39:11,840 --> 01:39:19,119
ignoring them, including the 555
property uh and the storm water. I I

1163
01:39:17,600 --> 01:39:24,560
know we're putting a big push towards
that, but that seems to be

1164
01:39:22,639 --> 01:39:29,119
it seems to be a concern of the
residents that we have long-term

1165
01:39:26,239 --> 01:39:32,560
drainage and resilience. And I
appreciate the the community

1166
01:39:31,199 --> 01:39:37,119
conversation we've had over the last
year uh that we reflects those

1167
01:39:35,280 --> 01:39:40,719
conversations that we've had with the
community. So overall, I I've see some

1168
01:39:39,360 --> 01:39:45,719
positive things coming out of this
report. So, thank you for your attention

1169
01:39:42,159 --> 01:39:45,719
to all the detail.

1170
01:39:46,639 --> 01:39:55,880
» Is that all, Andrew?
>> Nothing further.

1171
01:39:50,719 --> 01:39:55,880
» Then it is 3:39. We're adjourned.