[0:31] Good afternoon. Welcome to the board of
commissioners bud budget workshop number
[0:36] five. Today is Wednesday, August 26,
2026 and it is 2 p.m. City clerk, would
[0:43] you call the role, please?
>> Yes.
[0:47] » Mayor Brooks
>> here. Vice Mayor McGee
[0:50] » here.
>> Commissioner Tagarini
[0:51] » here.
>> Commissioner Dylan
[0:54] » here.
>> Commissioner Gavay
[0:55] » here.
>> All are present.
[0:59] » With no public in attendance, we will
move on to discussion items. Fiscal year
[1:04] 2027 budget workshop number five. And I
will hand this over to our finance
[1:11] director.
>> Great. Thank you. Okay. Okay, this is
[1:16] our last workshop before our our uh
first reading of the approval of the
[1:21] millage rate and the and the proposed
budget book. And we'll do two readings
[1:26] in September.
So, this is the last workshop. So, if
[1:29] there's any concerns, questions, issues,
things we need to update or change, um
[1:33] now is the time um to voice those. This
is still a live document that is can
[1:40] certainly be subject to change if
there's anything that you um feel that
[1:44] needs amending. But this is the the the
tenative budget book. So the full
[1:48] deliverable, it's 163 page uh document.
We're going to go over every single page
[1:53] in great detail. Just kidding. I've got
just a few things. Uh and there's a lot
[1:59] of there's a lot of content here. And so
a lot of what we've presented thus far
[2:03] that I presented has been a lot of
numbers throwing numbers at you. here
[2:06] has a lot of narrative from our
strategic goals and objectives. Um
[2:12] reasons for changes in in bud in in
budget from one year to the next. Um a
[2:18] summary of our revenue sources and where
those come from and by fund. Uh our
[2:22] capital improvement plan, some narrative
around that. Just community statistics.
[2:26] We've got a lot of narrative in various
parts and sections of the the budget.
[2:30] It's a departure from previous year's
budget documents. There's what's called
[2:34] the uh GFOA distinguished budget award
present uh uh the GFOA distinguished
[2:41] budget award. Uh the GFO is the
government finance officers association.
[2:46] They we are uh annual what we call our
ACER our annual comprehensive financial
[2:52] report. That's our annual audited
financial statements. We present th that
[2:57] annually to the GFOA and they give us an
award for excellence um or certificate
[3:02] of achievement and excellence in
financial reporting. We've never
[3:05] submitted our budget because it never
qualified because it's got to have
[3:08] certain sections and and content. And so
this is the first year I said, "Well,
[3:13] let's prepare the budget book a little
bit differently this year." Um and in
[3:17] accordance with the GFO requirements. So
you'll see a lot at the top of various
[3:22] sections it'll say like GFO O2
department fund relationship because
[3:26] that's what it wants you to cover. Not
to say we're going to submit this for an
[3:30] award. We certainly could now now that
we're presenting a more GFO compliant
[3:35] budget book. So if you try to look at
the budget book last year and the budget
[3:38] book this year
the the the table of contents and the
[3:43] underlying content within is is
definitely different. But um I think
[3:47] this tells a good story and what I just
want to do is kind of focus on maybe
[3:51] certain certain areas where we just
really kind of get into the highlevel
[3:56] numbers and what they mean. And then um
so I've got kind of a prepared
[4:00] presentation for I don't know 30 45
minutes to an hour tops and then turn it
[4:05] over to you all if you all have any
specific areas that you want to cover in
[4:09] in greater depth. So, I figured we can
start with my presentation and walk you
[4:13] through certain pages that I want to
highlight and then at the end and
[4:16] certainly we'll go through dialogue and
do some Q&A as we talk through that and
[4:20] then at the end if there's any section
out of this 163page document that you
[4:24] want to dig into further um because I'm
sure you all read it cover to cover uh
[4:28] then we can certainly uh cover that uh
and if if there are none then this will
[4:33] adjourn early.
Okay. Okay. So, are we ready to explore
[4:38] then? Let's go to uh what I first just
want to start is let's look at just
[4:43] again the the the financial structure of
the city, its funds and its departments.
[4:47] So, that's in the department and fund
relationship section and that is on page
[4:52] 25 of your packet which is page 23 of
the budget book.
[5:04] So this shows our our general fund and
all the uh departments within the
[5:09] general fund and then we go into the
other funds. And so if we just start
[5:13] with general fund, this just gives us a
quick overview of okay, what are all the
[5:16] departments that we have within the
general fund? Um what do they do? What
[5:21] are their goals and objectives? We've
got all that information and in um
[5:25] departmental goals and objectives
summary. Um, but if we're just focusing
[5:29] on that and all that's great reading to
understand like, okay, what are what are
[5:34] accomplishments of the community
development department and what are
[5:37] their initiatives, you know, going
forward. We have all that narrative
[5:40] explained throughout the uh within the
budget document. But if we just focus on
[5:44] the numbers here,
uh, let's look at general fund and the
[5:49] department. So, we're about 20,611,965.
That's what we have budgeted in expenses
[5:56] uh, for the general fund. Now, if you
wanted to dig into that and say, okay,
[6:00] well, geez, what's comprising most of
that? Well, looks like fire EMS is
[6:06] 7,371,940.
That's 35.8%
[6:11] of of the general fund. So, what does
that consist of? So, I just want to show
[6:15] you like how to navigate through this
and look at some highle information and
[6:19] then be able to uh drill into specific
accounts and and understand what ma what
[6:27] comprises um certain of these department
expenses. And maybe we can just hit the
[6:32] just for an example just kind of hit the
two uh the two or three largest ones
[6:37] like fire and um non-EP departmental and
maybe recreation. So, if you look at
[6:42] fire, so that's about a $7.3 million
budget. And if you look at fire, that's
[6:47] on going to be on page 134
um of your or I think it's maybe 13 page
[6:56] 136 of your packet 134 of the document.
[7:03] So, this is towards the end. This gives
you all the departmental detail. And so
[7:08] in all these budget table presentations,
we've got the first two columns are
[7:13] actuals that were those are actuals
audited. So audited 2024, actual audited
[7:19] 2025. And then the next is your fiscal
year budget minus one. So that's your
[7:24] current budget of 2026. And then your
last column, we have a header legend at
[7:28] the top there that shows that is your
2027 proposed budget.
[7:33] So we start with revenues. So the fire
department does generate revenues. Um so
[7:39] it has
uh
[7:43] most of that revenue is $3 million. So I
want to be clear on a $7 million fire
[7:48] budget and $4 million revenue. Let's
take 3 million out of that because that
[7:52] is the cons the remaining budgeted cost
of construction of the Readington fire
[7:58] station. Um that is just an in-n-out.
It's not our asset. So, it's being
[8:03] treated as an operating expense and
other current charges. Um, and the
[8:07] revenue, it's still our expense because
we're incurring it. We're um managing
[8:12] the project. Obviously, we're receiving
the invoices. We're paying the vendor.
[8:16] Then, we're getting reimbursed by
Panelis County. So, it's an in-n-out
[8:19] from that standpoint, but on grossed out
basis, it's 3 million of revenue, 3
[8:23] million expense. So, the true operating
budget of the fire EMS,
[8:28] not necessarily that 7.3 million. I
would reduce that by 3 million to uh
[8:33] about 4.3.
And then you can see the sources of
[8:37] revenue on from our main sources are
going to be the Readington Beach fire
[8:42] contract and the and the Penllis County
EMS to help support our our that
[8:46] Readington Beach EMS station.
[8:51] And then you can just look and compare
and say, okay, yeah, you know, what do
[8:55] expenses look like uh in the fire
department? And it is our largest
[8:59] expense in any single department in the
city operationally. If you add capital
[9:05] like storm water that's more but those
are big capital storm water drainage
[9:09] improvement projects. So a fire EMS is
the is the largest um expense of the
[9:15] city operationally
uh and most of that is personnel. So you
[9:20] can see we've also had headcount
increases. If you just look on the
[9:24] bottom of page 136,
134 of the document of the of the budget
[9:30] book, salaries and wages, you can see
from 2024 actual of 1.35 million, now
[9:35] we're at 2.28. So, we have had some
increases in headcount uh more recently
[9:41] um
uh which we've already talked about as a
[9:45] group of of hiring more um uh
firefighters um to go out on calls. So
[9:52] we have had year-over-year increases in
costs in in fire. So that's been a a
[9:57] contributor a larger contributor to the
20 million. Then the next would be
[10:02] non-EP departmental. So uh that's the
next largest expense of the general
[10:07] fund. So if you want to dig into
the numbers within non-EP departmental
[10:13] and let me stop and take a breath.
[10:18] So we can go well we can go right to the
non-dep departmental section. So what I
[10:22] did I showed you these are all your in
your department fund relationships. Your
[10:26] first table there is all your expenses
in total budgeted for all your general
[10:32] fund departments that comprises a $20
million um roughly $20 million expense
[10:40] budget. I've already showed you. Well,
take away three of million of that
[10:44] because that's not a recurring operating
because that was just that's going to be
[10:46] a one-time um expense to build out
finish building out the um the
[10:52] Readington Beach fire station.
So, we're kind of looking at 17 million
[10:58] and change in just in what's the
operating um budget for the general
[11:04] fund. There's hardly any capital in the
general fund as well, but I'm going to
[11:07] add a separate table to show you
operating versus capital on a fund by
[11:10] fund basis. I'll show you that
momentarily. I just want to finish this
[11:14] analysis so you can see departmental
costs in total and then how you can see
[11:18] that breakdown to prior years of actual
current year budget and next year
[11:23] proposed budget.
[11:27] before I dig into non-dep departmental
any questions on what I presented thus
[11:30] far or
>> so I'd like to just for and I I'll do it
[11:35] now instead of waiting just for
clarification where in the public uh
[11:40] there have been comments made that we
our budget is blown out of sight we're
[11:45] spending over $40 million a year and all
this page shows the actual cost of doing
[11:51] business in MadiRaa Beach at about $17
million a year and Everything above that
[11:58] when you look at our overall budget is
capital improvement projects or projects
[12:04] purchasing the land doing things like
that. Would that be a fair assessment
[12:09] Andrew?
>> It would. Yeah. And we have a table that
[12:11] that expresses that explicitly. So
that's just the on page um 26 of your
[12:17] packet 24 of the book. There's an what's
called aggregate view across all funds
[12:22] operating and capital analysis
governmental funds. So that'll show you
[12:26] what we have budgeted for revenues, fund
over fund, then what we have budgeted
[12:31] for expenditures, less capital outlay,
and then we have a line for capital
[12:35] outlay. So, I bring it up because um
when you're having a conversation with
[12:42] someone and they talk about us spending
$48 million this year in a budget,
[12:49] although that is what the number is,
that's not really a factual statement in
[12:55] that if you looked at everything over
the 17 million, the 17 million is the
[13:01] cost to do in business, keeping the
lights on, paying the staff, maintaining
[13:04] the day-to-day days and everything else
is road projects, building something,
[13:10] doing something. And if we wanted to
reduce our budget to a $20 million a
[13:15] year budget, we would no longer be
paving roads or doing storm water
[13:20] repairs or any of the other various
things that we do that are
[13:25] projects, maintenance projects.
[13:29] » Exactly. So when you see something in
past budget documents, let's say we have
[13:33] a 40ome million budget, we would show an
ambitious capital improvement plan that
[13:39] might be 20 plus million with all our
storm water projects, some recreation
[13:45] things, some you know um
you know public works projects. when you
[13:50] add them all up, yeah, there could have
been a 20 plus million dollar capital
[13:54] alone of which we often only, you know,
actually
[14:00] incurred a small subset of those kind of
proposed projects. The true operating
[14:06] budget is, as you see here on page 24 is
more in that uh for the general fund
[14:12] about 17 million across all your
governmental funds about 2021 million.
[14:19] » Thank you.
[14:22] And so that's the that's the
governmental funds. We also have our
[14:25] proprietary funds. And our proprietary
funds are are more intended to be
[14:30] self-sufficient.
So we've got marina parking, sanitation,
[14:34] and storm water.
And the first three are definitely
[14:38] self-sufficient. Marina parking have
been operating at a at a at a positive
[14:42] profitable clip uh for a number of
years.
[14:47] And you can see what those both
revenues, expenditures, and then capital
[14:51] outlay, which again is not s is not
significant for any of the funds or
[14:56] departments except for storm water with
a $4.9 million proposed capital outlay.
[15:02] And I know we've had strategic planning,
we've talked about projects, you're
[15:05] like, well, wait a minute, shouldn't we
have a lot more in projected capital
[15:09] outlay costs? We'll I'll cover that when
we get into the capital improvement plan
[15:13] section of the book because it's
specifically I'll I'll point you to a
[15:16] paragraph where we talk about kind of
that the the uh plan around development
[15:22] and and um and future plans.
[15:29] So that's so that's a good distinction.
you know, expenditures operating and
[15:35] operating consists of mostly personnel
within just your operating expenses,
[15:40] maintenance, repairs, contractual
services, professional services,
[15:46] um
you know, accounting and auditing, um uh
[15:52] department supplies, office supplies,
those kind of things. are operating.
[15:56] Capital means I'm uh either buying an
asset of something that's greater than
[16:02] $5,000 and has a useful life of more
than one year that I will the city will
[16:07] own. Uh so that's like equipment and
vehicles or projects. So improving
[16:12] infrastructure or improvements to a
building or to a park um that has a
[16:17] multi-year value. So that's those are
what we call capital nature. That's the
[16:21] distinction between operating and
capital.
[16:27] So going back to just those that general
fund and those um departments and their
[16:31] expenditures, the highest was fire. So
the next highest is 2.86 million is
[16:36] non-EP departmental. I'm not going to go
through every department and go through
[16:39] every line item. We'll be here forever.
But I just want to show you like if you
[16:43] feel like, geez, I'm lost in this 163
page document. I want to be able to just
[16:47] understand better how much is, you know,
what are we paying? What is non-EP
[16:52] departmental 2.8 million? What does that
consist of? City manager 914,000. What
[16:56] does that consist of? Finance 787,000.
So we have all that detail at the
[17:01] departmental level um towards the back
of the book. So if we look at non-EP
[17:05] departmental, that's going to be on page
uh 148 of your agenda packet 146 of the
[17:12] book.
[17:18] So the expenses for non-EP departmental
start kind of lower towards the end of
[17:22] the page.
So for the first year in non-EP
[17:25] departmental, we are having a uh a
budgeted position. Um we've never had
[17:32] personnel in non-EP departmental, but
that's the facilities and project
[17:36] coordinator um that your city manager um
as we he and I discussed is going to be
[17:42] allocated to a number of different
projects for a number of different funds
[17:46] and departments. So instead of trying to
allocate his time 72 different ways,
[17:50] we're just placing that individual as in
our non-EP departmental and then through
[17:54] an overhead allocation process, we'll be
charging out the other uh participating
[17:59] funds using that individual's time. So
that's the fir our first personnel um
[18:05] uh related budget um for that position.
But far and away the largest expense is
[18:14] going to be towards the end and that's
on page
[18:18] 150 of your packet 148 of your book. And
there's two large uh transfers.
[18:26] There's a transfer to debt service fund
and there's a transfer to the stormwater
[18:30] fund.
Below that was a transfer to the
[18:33] Archabald fund and that happened back in
2024 for 2.2 million. that was to help
[18:41] uh fund and provide funding to the
Archabald Park Fund for the beach
[18:44] growing renourishment project. Um
because we did get some grant money for
[18:48] that, but we had um our own uh
expenditures incurred by the city far in
[18:55] excess of what we re received in grant
money. So we needed that general fund
[18:59] infusion of 2.2 million, but nothing
budgeted since the consistent budgeted
[19:04] transfers out of the general fund. So
that's included now in our operating
[19:08] that's 17 million technically you know
20 million but you minus out the 3
[19:14] million from the um from the Readington
station that's offset by 3 million of
[19:19] revenue about 17 million of that general
fund expense. So, we got about 1.5
[19:24] million 1,495,000
that's going to debt service to the
[19:28] stormwater fund to pay debt service from
that uh 2019
[19:33] um $15 million debt um issuance
that's being paid over a multi-year
[19:39] period. Also,
uh about 300,000 to the debt service
[19:45] fund. That's for the the city center
construction and everything you see here
[19:50] that occurred back in 2013 I believe is
when that was issued. So we have about a
[19:55] $1.7 million debt service requirement on
top of our other operating obligations
[20:02] personnel and operating cost supplies
maintenance etc.
[20:08] So that's why that those debt service
requirements are that's being borne by
[20:12] the general fund are included in non-EP
departmental. So that's why it ranks
[20:17] number two in our largest um uh
departments in terms of spend.
[20:25] And then number three is recreation. And
so that one's going to be on page 155 of
[20:30] your book of your packet 153 of your
document.
[20:41] So you can see we start with just with
just I I wanted to just show you revenue
[20:45] so you can see what a department might
be individually generating in addition
[20:49] to its expenses. I know we I we we I
report this in a number of different
[20:54] places but I thought it's good to also
have here so you can see revenues
[20:58] compared to expenses. So you can see all
the uh special event fees, recreation
[21:04] program, after school program, summer
program, etc.
[21:07] the uh totaling 1438,500
in revenues. And then the cost of the
[21:13] recreation is going to be at the the
total at the bottom of your budget
[21:17] expenses,
which is 1,715,500.
[21:23] And we can compare that over a
multi-year period. So we can compare the
[21:26] far left column. So, I'm on the bottom
of uh page 157 of your packet 155 of the
[21:35] book. That's 2024 actual is 1.46
million. 25 actual is 1.47 million. And
[21:43] then we budgeted 1.58
uh million in 26 and then 1.715
[21:50] and 27. So a lot of that increase is
mostly in personnel and we didn't add a
[21:55] lot of positions but towards the end of
fiscal year 25 beginning of 26 we went
[22:01] through a salary study if you all recall
and the one department that had I
[22:06] believe the most um uh uh pay rate
changes
[22:12] um were was in recreation. So a lot of
those lower wage positions that that
[22:17] increased uh more substantially. So
recreation saw the big had the biggest
[22:23] impact on that salary study. Um so if
you look at the first expense
[22:30] in
[22:33] from 468
uh salaries and wages I'm at page 155 of
[22:39] the packet 153 of the book. that first
line salaries and wages 468,000 actual
[22:45] 493 actual and it's bumped up to 633,000
um budgeted
[22:52] and those reflected the the newer pay
rates that went into effect um and I
[22:57] believe the beginning of 2026.
[23:05] So that's just the blueprint for you to
be able to go and if you have any
[23:08] questions, you know, at the end of this
or even if you want to ask me
[23:11] individually, I'm digging into your
finance department, buddy boy, I'm going
[23:16] in all your line items. I want to and so
you have that basis of comparison to see
[23:20] two years of actual history, what we
budget in 26 and what we budget in 27.
[23:24] And then you get the macro view like I
showed you on page 20 um five of your
[23:30] packet what all those departments and
their budgeted expenses are for fiscal
[23:35] year 27 within the general fund.
And after that we go into the um
[23:43] the different funds. So, like I showed
you on page 24/26,
[23:48] if we go back up there, that operating
versus capital analysis.
[23:59] » Sorry, page 26 of your packet. Page 24.
So, that
[24:03] » is
[24:06] uh 24 is the booklet, 26 is the packet.
Yeah.
[24:10] » Whatever I say, it's always going to be
a two-page difference, which is which is
[24:14] at least good. were consistent.
>> Gotcha.
[24:22] » Andrew, I have a question for you.
>> How do you figure out
[24:27] how to budget
[24:31] a a certain cost?
I mean we we look at let's say the past
[24:37] three years of
the expenditures and then it's like
[24:43] let's say 400 some odd,000
and then the budget is 600 and plus. So
[24:48] how do you how do you drive from what we
have been spending versus the budget?
[24:57] How do you figure that out?
So for for budgeted expenses,
[25:04] we've got either kind of one of two
methods. One's either what I would call
[25:07] like specific identification
and what that we generally budget all of
[25:12] our personnel and capital under that
specific identification method. What
[25:15] does that mean? We have in our our
budgeting module within our ERP system,
[25:20] we have what's called budget position
control management. That's a basically a
[25:23] roster of all of our filled and vacant
positions and we assign them a pay rate,
[25:29] whatever their pay rate is. Now we also
include a coal increase, merit increase,
[25:34] so projected increases for the next
year. We assign them to their respective
[25:39] fund department combination. And then we
also have what's called budget benefits
[25:44] that will say okay well they're also
entitled to health insurance and which
[25:48] employees get health insurance and how
much how much retirement FRS um and then
[25:55] we have you know workers comp rates as
well um that fluctuate depending on the
[26:00] nature of work they do. So those are all
like specific employees either filled or
[26:07] vacant. It could be vacant positions or
their actual employee with their real
[26:11] information and that develops our
personnel budget. So that's not just a
[26:15] well shoot. We spent this department had
342,000 of salaries last year. Let's
[26:22] just do 360,000 this year. Let's just do
a little bit of a bump. Um no, it's very
[26:26] specific. We go employee by employee.
Have all that information into our
[26:30] budgeting module. And that's and so then
and then that's where I'm generating
[26:34] these reports and the system's
calculating all of the actual budgeted
[26:38] salaries and wages. It's based on actual
calculated um figures.
[26:45] Same with capital. Capital is not like
well we spent 3 million last year in the
[26:50] Archabald fund or in the Sorar fund.
Let's maybe spend four million this year
[26:53] and and you know it's kind of a field.
No, we identify specific projects and
[26:59] then we have a multi-year capital plan.
Here's what in 20 um well spent in 27 28
[27:07] 29 30 and you project it on a project by
project basis and the sum of all those
[27:12] projects for a particular fund
department then translate to my capital
[27:16] budget you know on a highly summarized
level. operating is where we've got a
[27:22] couple options and some diff different
um department heads do it a little
[27:26] differently. Some look at what we've
budgeted what they budget in the past.
[27:30] They look at some of their past expenses
and then they make their best estimate
[27:33] of the next year's budget. Others an
other option could be again specific
[27:38] identification for the finance
department accounting and auditing. I
[27:42] know we've got our audit firm and our
fees. So I identify that in the system
[27:46] and here's our project projected audit
fees. we pay our
[27:51] our um uh FA, our municipal advisor, we
pay them this amount. And I'm
[27:56] specifically going through line item by
line item what those are. And so those
[28:00] are a couple different ways that we can
then create um a budget for operating
[28:05] costs.
um either by looking at past year trends
[28:08] and saying here's what we budgeted last
year, let's do a 5% increase or maybe a
[28:13] decrease depending on what I what I
think is going to incur in the next year
[28:16] or specifically identifying um expenses
that you know are going to uh occur next
[28:22] year. So that's for personnel and
capital. It's very specific to the
[28:28] employee and to the project. for
operating it's a bit more of an estimate
[28:31] since that can occur from a number of
different vendors and different types of
[28:35] expenses and then revenues is more of
the projection how you know my advalorum
[28:41] taxes that's a pretty good calculation
here's my you know what the property
[28:46] appraiser is saying is our our taxable
values here's our millage rate um times
[28:51] a percent you know 95 96% for collection
rate and here's our proposed um
[28:57] advalorum tax revenue
For other revenues, it's more looking at
[29:01] historical trend information. What have
we been collecting in prior years? Do we
[29:04] is there any environmental factors that
might change as a result of that that we
[29:08] put our best estimates forward for
revenues?
[29:10] » So, if if the expenditure is less than
the budgeted cost at the end of the uh
[29:16] budget year uh fiscal year, you can
put that funds back into like general
[29:24] funds.
>> Good question. That's next thing I'm
[29:27] going to go on go is we're going to look
at fund balance analysis. So I want to
[29:30] go through uh a page of called that's
called fund balance analysis. So and
[29:35] that's exactly what happens. You have
your actual fund balance then you have
[29:39] your year's results and then that fund
balance either increases or decreases.
[29:44] You increase your reserve or you
decrease them. Then you have your
[29:47] budgeted results and then here's our
budgeted ending fund balance at the next
[29:52] year. And that I'll show you a schedule
that'll depict all that. And I kind of
[29:56] want that's my next great segue. That's
what I want to talk about next. And
[30:00] going through on a fund by fund basis
what reserves, beginning reserves,
[30:04] ending reserves look like, ending budget
reserves look like fund by fund and some
[30:08] that um um that merit some additional
explanation. I'll go through that.
[30:17] Any other questions or do you want to
walk through that now?
[30:22] Okay, good. You haven't lost me
completely yet. We're we're still
[30:26] hanging on by a thread. All right, good.
Let's go to page uh 60 of your agenda
[30:33] packet, page 58 of your budget book,
[30:42] fund balance. And this isn't in this is
not in prior year's books, our budget
[30:47] books, because again, we this is a newly
prepared budget book that I I created.
[30:52] um to be more aligned with the
government finance officers association
[30:56] GFOA distinguished budget award program.
And so they have a whole section fund
[31:00] balance that that shows this information
and I like it because I think it it
[31:04] presents very valuable information on
well gez we're our expense our budget
[31:08] expenses are higher than our budget
revenues. Can we afford that? Well yes
[31:12] if we have sufficient reserves to
capture it. Um so this goes through you
[31:17] know um if we look at this table here on
this in this page let's kind of just
[31:23] take this fund by fund.
So in the Archabald Park fund we'll
[31:28] start we'll start first um
we have 2025 ending fund balance net
[31:35] position. So this is based on audited
figures. So that's this is done 2025
[31:41] already done audited. So these you could
agree to your audited financial
[31:45] statements uh fund by fund this is the
are basically ending fund balance right
[31:50] it's the difference between assets and
liabilities
[31:53] um and what either increases fund
balance every year or decreases it it's
[31:57] called change in fund balance that's
revenues minus expenses
[32:02] so starting in 2026 end of 2025 we're at
663,000
[32:08] so thus far in 26 we had some um some
beautifification projects, park pocket
[32:14] park improvement projects. We have been
spending some capital
[32:18] had had some capital expenditure in the
arch ball park fund and that's um you
[32:23] can see this is year to date as of like
early August when I kind of put the
[32:28] finishing touches on this. So these are
near actual numbers to date. um maybe
[32:35] just a few weeks outdated, but otherwise
this is capturing actual activity year
[32:40] to date in fiscal year 2026, which
started October 1st to early August.
[32:47] So, you can see we do have a a a pretty
wide gap there from 539,000 revenues
[32:54] to 1.1 million in expenses.
So, that's now we're that's depleting
[33:00] our fund balance. Then in 2027,
more of the same thing. We're at 577,000
[33:07] of budget revenues to 1.45 or 1.46
million expenses. So budgetarily, the
[33:13] math isn't going to work. It's not
working long term, right? We're
[33:17] expending, we're proposing to expend
much more than what we're generating in
[33:23] revenue. So let's go take a little
deeper dive and to see what what's
[33:26] causing that. What does that look like?
So, let's go down to page uh 35 of your
[33:33] packet, page 33 of your book.
[33:49] Okay.
So, start it starts. So this is all this
[33:54] is shows you revenues and expenses by by
fund for all of your other funds outside
[33:58] of the general fund. So starting with
Archabald Park, Archabald Park,
[34:02] Archabald fund is fund 110
and then the first table is all of your
[34:08] revenues. The next table is all your
expenses.
[34:12] So the main primary source of revenues
in the uh for Archabald Park is your
[34:18] parking meters.
So, we have that modestly budgeted at uh
[34:23] 550,000.
[34:27] Um
[34:30] I think 2024 is probably a better
estimate of what your true revenue
[34:34] potential is and that was almost
600,000.
[34:38] You see in 2025 it went down to 383,000.
But remember, we had a giant mound of
[34:45] sand for a period of multiple months
before we even opened up that lot. So
[34:52] that
ate into a lot of our revenue potential
[34:55] in 2025. I'm impressed that we had the
recovery that we did and got 383,000.
[35:00] So I think 550,000 for 27 and 26 and 27
budget is even a little conservative.
[35:09] Uh, if you want to give me a moment, I
can even pull up
[35:13] um what our actual revenue is thus far
in just that one account
[35:23] because I'm curious myself.
[35:28] So, we're at f $515,95
just on the Archabald uh beach parking
[35:34] meters.
So, I think we'll definitely meet or
[35:38] exceed the 550,000 budgeted um by the
end of September.
[35:44] So, it probably maybe get closer to
about 600,000,
[35:48] more in line with what we were at in
2024.
[35:53] And then we've got the beach walkover
chair rentals. That's a $12,000
[35:57] um annual. And then some interest.
We also, if you see above that was a
[36:04] concession snack shack. So that was a
good $102,000 and then that frigin
[36:09] hurricane hit and now we're at nothing.
Right? We budgeted in 26 I think at the
[36:15] time when we went through the budget
process in 2025. We thought we could
[36:19] slap some repairs together and and rent
it out, but realistically no. We've got
[36:25] um more work to do on that. So
conservatively, we haven't budgeted any
[36:28] revenue for Snack Shack. That's not to
say we can't um
[36:35] um make the the the needed repairs and
actually have the tenant in and and rent
[36:40] that out and actually generate some
revenue in 2027. So revenue is possible.
[36:45] At baseline, it was about $100,000 a
year. So hopefully we can get back to
[36:48] that at some point.
>> So Andrew, the FEMA fund, did that is
[36:54] that included anything in in in anything
in here?
[36:59] the FEMA.
[37:07] So, our our FEMA reimbursements I think
were uh at least thus far have just
[37:12] recorded all in the general fund even
though I know some of it is maybe
[37:17] general fund related and some you can
maybe carve out to other funds. I think
[37:20] when we got the check we have a a a FEMA
grant revenue account in the general
[37:25] fund and that's what we parked it. We
can certainly dig into that number more
[37:29] and and and allocate it to to different
funds
[37:31] » because you can only spend that money in
a certain way, right, for construction.
[37:36] » Well, so those those FEMA funds is
that's a reimbursement. So we've already
[37:39] already incurred the um the damage and
the costs. Um and so
[37:46] essentially that's just a reimbursement
for the cost that we've already
[37:49] incurred. We've had to show FEMA. It's a
pretty arduous process pulling up all
[37:54] the the the documentation that they
want. That includes evidence of of of
[38:00] damage, pictures, and costs,
rehabilitation costs incurred. So, we've
[38:04] already incurred those costs. We're just
looking to we're looking to get
[38:07] reimbursed.
So, we're keeping that out of the out of
[38:11] the um we don't I don't believe we have
any FEMA revenues
[38:16] um budgeted, but that's not to say we
cannot we won't be getting FEMA revenues
[38:22] trickling in over the next fiscal year
or two years, but it's just a little
[38:26] unpredictable based on what they
reimburse and the timing that I think we
[38:31] excluded from from the budget.
[38:35] Um so then getting back so realistically
if everything's operating normally we'd
[38:41] have about 600,000 and 100,000 from the
uh parking meters and the snack shack
[38:49] respectively. So that puts us at about,
you know, 800 uh, excuse me, 700,000
[38:56] plus interest and the chair rentals 7
maybe 750,000.
[39:01] And that can as long as we're just doing
pure, you know, or in our personnel
[39:06] costs, we're allocating um,
either part uh, part of maybe public
[39:13] works and maybe one one or so dedicated
employees that handle parks. that's
[39:18] that's getting absorbed into the
salaries and wages expense. So some
[39:22] those are the personnel costs that are
pretty fixed year-over-year.
[39:26] Uh we do have a large if you look at the
bottom of page 36 of your packet 34 of
[39:32] the book maintenance building DAV I
believe those are the budgeted costs for
[39:38] the um for the snack shack um
uh repair.
[39:44] So that would be nonrecurring. So, if
you take out that, that's non-recurring.
[39:50] Um, and then you look at the end of the
the last page, we don't really have we
[39:56] have $60,000 in capital. So, you take
out five $560ish,000.
[40:02] Just the pure operating expenses can be
more like $800,000. So, we can maybe ek
[40:08] out close to break even if we're not
incurring any capital costs or we don't
[40:12] have any large
um maintenance work that we have to do.
[40:18] And then our biggest maintenance expense
is maintenance grounds parks. That's at
[40:24] 150,000 um budgeted that that's on that
last page that I'm I went over page 37
[40:30] of your packet 35 of the book. That's
your besides the maintenance to that to
[40:37] the snack shack which was more one-time
hurricane induced um your ongoing
[40:42] maintenance expenses is more on the um
maintenance grounds parks. So we have
[40:46] budget 150,000.
So it's not barely probably not breaking
[40:53] even uh on an annual recurring basis as
as long as we don't have any capital
[41:02] needs. But as soon as we do, then we
know that this Archabal park fund is not
[41:06] self-sufficient.
And I'm not sure that's exactly the
[41:11] desire that we need that that fund to be
self-sufficient because we care about
[41:14] our parks. Um just presenting the
reality that periodically we might need
[41:19] to like we had that $2.2 $.2 million
general fund transfer into the Archabald
[41:24] Park to help fund the beach groin
reconstruction project based on just
[41:30] these operating needs, the lack of
revenue on the snack shack. Now, um and
[41:36] the the maintenance or repairs and
maintenance costs to to u renovate
[41:41] damaged areas. um we'll need another
another infusion from the general fund
[41:47] and then hopefully on a long-term basis
we can be at or close near near break
[41:51] even but that one's that one's tight.
>> So you said it's non self-sufficient
[41:56] correct?
Well, currently right now in this in
[42:00] this we have some one time I'm saying
what's in the long-term horizon on the
[42:04] Archabald Park Fund if we wanted to fund
those those personnel costs and fund all
[42:10] the the maintenance around all the parks
around the entire city. Um those two
[42:15] revenue sources are barely sufficient to
do that. Well, I'm not sure that this is
[42:21] the exact time to bring this up, but I
do believe one of our residents or
[42:26] commercial people was talking about
doing a long-term lease on the building
[42:32] if and he would be responsible for the
interior
[42:36] um
building things and if there would be
[42:40] another hurricane or storm, he would
make it such that it could be removed.
[42:46] And once again, like I say, as we're
talking budget, you know, it's kind of
[42:51] putting the cart before the horse, but
um is that something that it could
[42:56] become,
you know, a revenue if we had a
[43:02] long-term lease,
I believe, and that's why I'm just
[43:07] bringing this up at this point.
[43:12] » Open form if anyone wants to address I
mean, anything that's at least that
[43:15] we're
>> So, I will. So, Archabald, the snack
[43:18] shack, has always had a long-term lease
up until the hurricane when the it
[43:25] became uninhabitable and needs repair.
So, once we repair it, it will go back
[43:31] out to bid for a new lease on it and
that person would be responsible in a
[43:37] triple net lease to maintain it and take
care of it.
[43:41] So, that will happen again. That revenue
will come back, but it won't come back
[43:44] until we repair the building and make it
where someone else can come in. When
[43:49] they go in, the building will be white
boxed. They will be responsible to bring
[43:52] in all the equipment for it to be a
restaurant and to be a retail
[43:56] establishment. That's required by the
lease. So, that'll happen.
[43:59] » Thank you.
>> Yeah.
[44:05] » Hopefully sooner than later.
[44:10] » Okay. Okay. So then back to page 60 of
your packet. Oh no, sorry. Uh yes, page
[44:15] 60 of your packet 58 of the document.
So that's the Archabald Park fund. I
[44:23] just wanted to give you kind of a
realistic overview of where it's at
[44:26] currently. Um and kind of long longer
term projections.
[44:32] Um
building fund next. That one um we've
[44:36] already talked about to a degree. uh the
2025 ending fund balance of almost
[44:43] $70,000. It had a much higher fund
balance before um but then we had the
[44:48] hurricane hit and we had uh the um
waving of the permit fees as you know.
[44:53] Um some of that bled in a little bit in
2026. Um but um overall our permit
[45:02] revenues definitely increased. I think
it was maybe 400 something,25
[45:07] 26 is already trending to 700,000 plus.
Um but we have incurred a lot of
[45:12] expenses 1.1 year to date on expenses in
the building fund
[45:19] and a lot of that because we had you
know uh turnover and we had uh
[45:23] outsourced positions that were full-time
in terms of the role that were uh
[45:29] outsourced to an external uh third
party. And so that by by nature is a
[45:37] more expensive proposition
um when you have a third a third party
[45:42] doing a full-time role within your
organization. So we're making strides on
[45:47] on hiring and filling positions
internally. So that is going to reduce
[45:51] our professional services expenses and
get us more um into a better position in
[45:56] terms of personnel costs both
contractually and uh internal FTEEs.
[46:03] But then the other thing that we need to
do is is and we've already talked about
[46:06] this so I don't want to belabor it is
just reevaluate the permit fees that are
[46:10] being charged. They were at 2% of um of
of of total permit value. that got
[46:17] reduced down to 1% and currently that's
not sufficient to meet the operating
[46:22] needs of this department. Um plus the
state has now come out with regulations
[46:27] that make our our
require compliance over time to be more
[46:32] of a um service model like looking at
our actual um time and materials and
[46:39] expenses that go into the work to
generate the permit. So, that's all in
[46:45] progress and Marcy's here if you have
any other specific questions on that.
[46:49] Ultimately, the long-term trend is that
this is uh a a break even proposition.
[46:55] And so, it it's not currently, but
that's that's the goal of the future.
[46:59] And so, we've got a team in place
that'll be working on that. But um where
[47:04] you see this the fund balance and
projected negative 1.57 million. Yes,
[47:11] that's concerning, but that's something
we'll be coming back to you all with
[47:14] with proposed fees changes on our on our
um permitting and all of our community
[47:19] development fees.
Uh I'll skip over debt service fund and
[47:25] the gas tax fund. Those are um gas tax
fund is largely kind of break even.
[47:30] There's not a lot of expenses running
through that. We have some gas tax fees
[47:33] and then we've got some um kind of
lighting and and street maintenance
[47:37] expenses that go into that. Debt service
is just taking that general fund
[47:41] transfer. It's increasing its fund
balance because it's earning interest um
[47:46] on its on its pulled cash balance. Um
but ultimately it's taking in the the
[47:51] the transfer in and then making the debt
service payment for the the 2013 bonds
[47:57] that were issued.
So then you've got the general fund
[48:04] where we were at end of 2025 almost $19
million pretty healthy fund balance. Um
[48:13] and so then as you're aware that did get
um
[48:18] uh largely depleted if you look at your
2026 revenues year to date and 2026
[48:23] expenses year to date. And I walked
through this if you all recall from last
[48:27] Friday our strategic plan meeting. We
talked about this a little like where
[48:30] does general fund sit currently. So if
you just look at those two numbers
[48:35] 32,223,791.
[48:39] So if I actually take those two numbers
and I'll just do the little math on my
[48:43] own and let's pull that up and and run
it through. So we've got some
[48:47] reconciling items to contend with.
So you've got 32 million
[48:53] 223791
in expenses minus 18 million488
[49:02] uh 287 in revenues.
That's a 13,735
[49:09] um,000
difference. And then you add back in $18
[49:15] million or or back that out $18 million
120,000 the closing cost included.
[49:26] That's the purchase of the 555 property.
Now you're at plus 4.3 million.
[49:33] And we received that emergency from that
emergency bridge loan program.
[49:39] Uh we received
[49:43] I'm drawing a blank on on how much we
got. I believe it was 3.
[49:54] Pulling that up now. Give me one second.
[50:03] 3 million48,500.
[50:07] So, if I add back 3,148
um 5,3148500,
[50:16] I'm at 1.2 million ahead.
So, what did I just do? I took basically
[50:22] our our our results thus far year to
date in the general fund across all
[50:27] departments, all of our revenues, taxes,
charges for services, everything, minus
[50:32] all of our expenses in the general fund.
and we were at a $13 million deficit.
[50:38] Why were we at a $13 million deficit?
Well, we spent $18.12 million on buying
[50:42] a property,
but then we also received $348
[50:49] million resulting from the hurricane
damage um when you all approved this
[50:55] emergency bridge loan program, which is
great for us, right? No repayment terms,
[50:59] no interest acrewing, keep the money,
pay us back over 10 years. maybe they
[51:04] won't even make us pay it back. Um, so
you factor in taking those two rec those
[51:09] two reconciling items into account,
you're at about a one $1.2 million on
[51:14] the profit side. Now, what I want to see
is the general fund operating at at
[51:20] around break even. Um,
and so where we're at then in 2027, we
[51:28] are at about a a 3 million or so. um
deficit budgetarily, right? Budgetarily
[51:37] a deficit and and most of that's just
personnel costs. Um there's not a whole
[51:42] lot of capital in the general fund that
we're um that we're budgeting for. So a
[51:48] lot of just operating expenses exceeding
our budgeted revenues. Um but like I
[51:53] said, actual results
typically always fall in less than
[51:58] budget. and then so we'll see as as the
actual plays out. But if you look at
[52:03] that and you're concerned, I totally
understand. Um there's just not much to
[52:08] cut out of the general fund unless you
want to cut um positions. Um
[52:19] so that's the that's the stark reality.
Even with that budgeted 3 million
[52:22] deficit, we're still at 1.7, you know,
million remaining of of budgeted fund
[52:29] balance. If if actual plays out exactly
the way budget does.
[52:35] So again, I'm not I'm not sounding alarm
bells like, okay, we got 17 million
[52:40] budget revenue, 20.6 budget expenses. Um
because I know our our actuals always
[52:46] come in lower. We budget very
conservatively on health insurance. Um,
[52:50] so our actual health insurance costs are
always typically lower than budgeted. We
[52:54] have vacant positions that don't get
filled. So invariably we don't incur all
[52:59] the costs that we budget in the general
fund. Nevertheless, I always like to
[53:03] budget actual revenues to be at least
somewhat in line with expenses. So I
[53:07] just want to keep an eye on that. Um,
nothing I want to sound the alarm bells.
[53:11] Um, but we want we want budgeted inflows
and the general fund to be at least
[53:17] somewhat in line with budget outflows.
[53:22] Okay, moving on.
Impact fee fund.
[53:27] And remember,
there used to not be a parking fund. We
[53:31] used to have parking parking all parking
revenues in the general fund. So, if I
[53:34] just did that, general fund would look a
lot different. Instead, and I'm going to
[53:38] get to that at the end. Well, geez, we
also have two very profitable
[53:42] uh operations at marina and parking that
if we just said, well, let's just put
[53:46] all the revenue Oops, excuse me. In the
general fund, then we wouldn't be seeing
[53:50] a three, we would have 3 million or so
higher of revenues and we would show um
[53:55] even budgeted profit in the general
fund. So, the sky is not falling. I just
[53:58] want to I'm just presenting factual
numbers here to you of actual results as
[54:02] well as what we're budgeting next year
on a fund by fund basis so you can see
[54:06] what our budget reserves are at the end
of the next year. I just think this is a
[54:10] very helpful table to kind of go through
this fund by fund
[54:15] impact fee fund. We just keep increasing
our our reserves and impact fees in the
[54:19] impact fee fund. So this is one that we
can if the project qualifies we can
[54:24] designate it. We don't have any budgeted
expenses in the impact fee fund. But
[54:28] that's not to say we cannot spend out of
the impact fee fund. We would just need
[54:31] to put forth in a budget amendment to
you all to say we've got a great
[54:34] eligible project that we want to pay
with impact fee dollars. Um whether
[54:39] that's a a future um recreation project
and close a basketball court or um
[54:46] anything that can be um that would apply
that um based on the statutory
[54:52] requirements on how we can spend impact
fees. We've got money there to the point
[54:57] where it's getting to about 1.4 million
of of available funding. So that's not
[55:01] pocket change.
>> Andrew, um yeah, the impact fee fund is
[55:06] that because I know there's always
impact fees for water and sewer and
[55:12] water and sewer we don't own. County
does. So that portion of the impact fees
[55:19] we still collect, but then we have to
pass it on to Penelis County.
[55:24] So the impact fee fund that we have is
basically the net
[55:30] amount that is paid to us. Is that
correct?
[55:36] » Yeah. To a degree, yes. So we have uh
three types of impact fees. And Marcy,
[55:41] you know better than this, so if I
misspe, throw something at me. Uh we
[55:45] have a a public safety impact fee, a
recreation impact fee, and a
[55:48] transportation impact fee. That was uh
only within the last I think three to
[55:54] four years when we put forth an impact
fee ordinance that the commission at the
[55:59] time approved and so there's a
calculation methodology to that. What
[56:04] has been under scrutiny more recently
that we rescended was the transportation
[56:08] impact fee the county already charges
and within that transportation impact
[56:12] fee there's a penelis county portion and
a city madiraa beach portion and then we
[56:16] were charging another transportation
impact fee on top of that. So, um I
[56:22] believe that that transportation impact
fee, um we're no longer charging, but
[56:28] the county when we are, we do have to
send the county that portion that the
[56:33] the county's portion of that that
belongs to them. We do that annually in
[56:36] October every year. That's report that
as a liability in our in our accounting
[56:42] system. So, we know this is not a
revenue, this is a liability. But all
[56:45] the other impact fees that we collect,
recreation, public safety, and then the
[56:49] transportation related impact fee that
we can keep, um, that is available, uh,
[56:53] for the city to spend.
>> Yeah.
[56:55] » And that's that number I showed you is
the true revenue.
[57:04] » Okay. So then even better, again, we
have capital needs in the future. What
[57:08] are funding sources? Impact fee fund
definitely is a funding source. A couple
[57:12] years ago, it wasn't as much because
we're just collecting, you know, a few
[57:14] hundred,000, but now it's it's adding up
to where we've got budgeted about 1.4
[57:18] million. Another one that we have
budgeted rather aggressively in the
[57:23] past, but never really it's have spent
as much as we've uh planned has been the
[57:29] local option sales tax fund. That's like
the penelli penny for panelis. So, you
[57:33] can see that fund balance, that actual
fund balance is 3.2 2 million as of
[57:39] fiscal year ended September 30, 2025.
That's that's not projected. That is
[57:44] actual remaining fund balance. Assets
minus liabilities.
[57:49] Uh and then we've got revenues in 2026.
That's the discretionary sir tax that
[57:57] penalty penny for penalis money that we
do collect. I believe we get that on a
[58:01] monthly basis.
Um, and then we've got some small
[58:06] capital related expenses, 182,000 year
to date in the lost fund.
[58:13] Then we've got budgeted next year for
27,765.
[58:18] And we did not have a long laundry list
of projects. We just have $100,000
[58:23] budgeted in 27 for expenses. So now
we're at budgeted of almost $4.4 $4
[58:28] million available for future projects in
the lost fund
[58:34] of which many or most capital projects
um do apply. So there are some minor
[58:40] restrictions um but for the most part
infrastructure improvements, government
[58:44] building improvements, public safety
vehicles, those are the main things that
[58:48] we can spend with lost fund dollars. And
so that fund balance has been increasing
[58:52] over time.
>> Andrew, I'm sorry. I I was trying to
[58:56] follow you and I I Could you tell me
what
[58:59] » page I'm on?
>> Yeah, sorry.
[59:01] » No problem. Page 60 of your uh packet
>> 60 of your packet, 58 of your um
[59:07] » Thank you. Sorry.
>> of your document.
[59:10] » So, this is this fund budget year fund
balance. I really like this. It shows
[59:14] you where we were historically. How much
money do we have in each of these funds?
[59:18] You can kind of say that's kind of your
fund balance like how much you know
[59:22] reserves um you know what's available in
it. You know what's available in it is
[59:29] whatever the balance was last year plus
revenues minus expenses this year and
[59:33] revenues minus expenses each year after
that.
[59:37] So those are those are
positive attributes and those capital
[59:43] intensive funds impact fee fund and the
lost fund that we do keep increasing our
[59:48] available fund balance in those funds.
Then we've got Marina fund another big
[59:55] winner thanks to Krabby and his team.
Uh that's been increasing 4.5 million.
[1:00:02] That's where uh fund balance net
position was in 2025 actual audit
[1:00:07] results
and then we just keep the marina fund
[1:00:12] keeps making money. So 1.5 million
yeartoate actual revenues 820,000
[1:00:17] yeartoate as of a couple weeks ago
expenses and then we're budgeting for
[1:00:22] more profit. We're budgeting 1.725
million of revenues and 1.379 million of
[1:00:28] expenses.
Why are those we expenses so high? We do
[1:00:32] have I believe the budgeted um capital
project. We'll dig into that in the
[1:00:36] capital improvement plan. I think that's
for the um the seaw wall or the the the
[1:00:41] docks uh the city hall docks. Yeah.
So now we're at 5.5 million um available
[1:00:49] in the marina fund.
Then uh then parking fund again um
[1:00:57] that's been that the parking fund only
began its existence I think three years
[1:01:02] ago in 2022 or three. It was all a part
of the general fund. Then we pulled it
[1:01:06] out to to uh report it separately in its
own fund. 5 million was available fund
[1:01:13] balance. Then we're adding 3.2 million
revenues to 1.5 expenses. That's actual
[1:01:18] year-to- date results. 3 point almost
3.2 2 3.3 million in um projected
[1:01:25] revenues, which looks conservative since
we're already at 3.2 million actual in
[1:01:31] 26. So, barring another unforeseen storm
or incident that drives people away from
[1:01:36] the city of Mader Beach, um that's
probably a very um conservative estimate
[1:01:42] on the revenues for 2027.
And then only one and then 1.8 8 million
[1:01:49] of expenses um out of the parking fund.
So now we're at 8 million in fund
[1:01:55] balance net position in the parking
fund.
[1:02:00] So a 3 million deficit in the general
fund feels a lot better when I see those
[1:02:05] results in the parking fund, the marina
fund of which those are not restricted
[1:02:09] monies that are that we have to
restrict. I mean, those can be um
[1:02:15] transferred to the general fund to help
to help offset general fund expenses,
[1:02:20] but ideally, we want to build those
marina and parking fund reserves because
[1:02:25] we've got an ambitious long-term
capital improvement plan with various
[1:02:31] projects that those funds can help um
support ongoing debt service payments in
[1:02:37] the future if if and when we issue debt
for for various development efforts.
[1:02:42] So
money is there to that extent certainly
[1:02:46] in those two funds.
And then the last two um sanitation
[1:02:52] fund.
So again sanitation fund um since we're
[1:02:59] charging charging residents we don't
want to overcharge to help fund
[1:03:03] non-sanitation related expenses. Um that
is intended to be a bit of a break even
[1:03:09] analysis. We've actually been building
up our reserves in the sanitation fund
[1:03:13] more recently when we had enacted a fee
increase in I think fiscal year 22 um
[1:03:20] because we were operating at break even
or a deficit um previously. So we're at
[1:03:26] 2.8 million actual net position and then
revenues and expenses 1.6 and 1.4 so
[1:03:35] far. Um which at 1.4 4 includes any
capital related out outlay. And then in
[1:03:41] 27, we've got 2 million revenues and 2.4
million expenses. But that 2.4 and we
[1:03:47] can dig into the sanitation
uh revenue and expense detail if you
[1:03:51] like, but I we'll look into what what
comprises that number out of capital. So
[1:03:57] there are some vehicle replacements, I
believe, that that um contribute to that
[1:04:02] 2.4 million expenses. But overall, we're
we've been trending nicely in sanitation
[1:04:06] fund and continue to do so.
And then storm water fund, 5.4 million
[1:04:13] ending fund balance. Um, a lot of that
is just is kind of your your your uh
[1:04:21] project costs that were capitalized. So
that's not like true cash. That's that's
[1:04:27] capitalized project costs. um 26
revenues so far, 578 million thousand,
[1:04:35] excuse me, compared to 4.3 million of
actual expenses. And that's a lot of the
[1:04:39] the storm water projects we've been
working on. And so again, this one is is
[1:04:44] more of the same 5.7 million budget and
revenues. And a lot of that revenue
[1:04:49] uptick is is um as uh grant funded
revenues. So getting different funding
[1:04:57] sources for some of our project our
storm water projects we're anticipating
[1:05:01] in fiscal year 27 and then there's your
7.5 million in expenses. Most of that is
[1:05:07] your project cost that we'll cover in
capital.
[1:05:12] » Andrew question um
as far as consultant fees how does that
[1:05:18] fit in this budget? How do you designate
consultant fees that we pay for design
[1:05:25] of let's say storm water?
>> Sure. So it depends on the nature of the
[1:05:30] consultant fee. If it's like to do a
study to in um evaluate options or
[1:05:36] alternatives that's typically an
operating expense that we would put in
[1:05:39] like professional services because it's
not tied to a specific project like a
[1:05:43] design or engineering plan. It's more
like an evaluation. Um it's so it's not
[1:05:49] capital, it's a piece of it's a
document. So it's not a fixed asset and
[1:05:54] it's not tied to a specific project
versus design and engineering work on a
[1:05:59] particular project. So that's going to
be like an infrastructure asset or a
[1:06:03] building improvement asset. Um that will
that will be would be capitalized and
[1:06:10] those particular consulting costs would
be a part of if you look at our account
[1:06:16] your account level detail would be a
part of capital improvement. And so
[1:06:21] you'd see that in your in your capital
costs as part of your capital
[1:06:24] improvement plan. And we would embed
those engineer professional engineer
[1:06:29] architectural design work. That's all
part of the the the capital project
[1:06:34] » and the grants that we receive is
somehow associated with that.
[1:06:38] » Yeah. And very important to know we
don't we wouldn't offset. So we would
[1:06:42] never reduce our expenses. We would
gross up whatever that grant revenue is.
[1:06:46] That's your revenues um compared to the
the uh expenses and those would be
[1:06:51] displayed separately. And that's a good
point. Why don't we actually go to this
[1:06:54] the
storm water fund and we can look at that
[1:06:58] just real quick.
And that's going to be on page
[1:07:03] 57 of your packet 55 of your book.
[1:07:20] So um you can see
some of the the the non-recurring
[1:07:27] revenues. So the first two lines, one
storm water grant, the next Panelis is
[1:07:30] Penelis County. So I imagine the Penllis
County one for 1.485 million is like a
[1:07:35] JPA joint participation agreement that
we have with Penllis County. Megan Web
[1:07:41] could share with the details of the
actual project for that. So that's their
[1:07:44] involvement um in that for you know
whatever reason and we would get the we
[1:07:50] would get we would invoice Panelis
County for their share of the project
[1:07:54] work and we would absorb the entire
project cost pay those invoices and all
[1:07:59] those would go to a particular that
capital improvement we call it in the
[1:08:04] storm water fund most of that goes to
what's called the drainage and roadway
[1:08:07] improvement capital um related expense
that's on page 5 uh8 of your
[1:08:17] packet. Oh, sorry. It's at the way end
there. Page 59 of your packet. Page 57
[1:08:23] of the book.
You can see an expense here called
[1:08:28] 404920056305
drainage and roadway improvement.
[1:08:34] And that's where we generally um budget
our capital related expenses in that one
[1:08:40] in that one account.
And then when you say, "Well, geez, how
[1:08:45] does if it all just goes to that
account, how do we know how much we're
[1:08:48] spending on area 3 versus area 5 versus
area 7?" We have a separate projects and
[1:08:53] grants module in our ERP, in our
accounting system that we tag those
[1:08:58] transactions that hit that GL account
and say, "Hey, it also relates to this
[1:09:02] project." So, we can run an annual or a
multi-year project report. And so we can
[1:09:07] see by project. Hey, show me for area
three. How much have we spent in 2024,
[1:09:12] 2025, 2026, how much revenue have we
generated on a on a project by project
[1:09:18] basis, but we keep the accounting simple
uh for budgeting purposes. This that one
[1:09:24] account is inclusive of all of those
project costs.
[1:09:29] I just want to bring up at this time
originally when we were talking this I
[1:09:33] did not want to look at raising the
storm water storm water prices because I
[1:09:40] was not going to come into office and
say okay well yes let's raise this but I
[1:09:45] got an article and I just want to you
know from the paper on August 6 that
[1:09:51] city sewer bills in St. beat Beach Beach
could jump 64%. And I thought, well, big
[1:09:57] deal. But yet what they're paying right
now is $11059 a month and it's going to
[1:10:03] 128. So for us going from 10 to $20 is
minimal. I mean, you know, so seeing all
[1:10:11] this information,
um, you know, it it's Madera Beach is
[1:10:16] still very cheap for their storm water
and let's kind of get back in line of
[1:10:21] getting this back in place.
[1:10:28] Yeah, we certainly in incur
incur costs in our storm water fund and
[1:10:33] storm water cannot be neglected
given just the the basic geography of
[1:10:40] where we're at. So
>> most of the increase in the funds are so
[1:10:45] that we can pay the debt service and
take that out of a debt service that the
[1:10:50] general fund has been paying for. Is
that correct?
[1:10:55] It helps and even with that we went
through the math together previously
[1:10:59] with our existing debt service and our
and our operating costs which included
[1:11:03] personnel and maintenance on the storm
drains and everything irrespective of
[1:11:06] capital. We're still not projected to be
quite there. I'll be curious when this
[1:11:10] when it the fee increase goes into
effect and and run analysis as we go
[1:11:15] through fiscal year 27 actual results
just how close we are. But we're not
[1:11:20] we're getting better. So we're certainly
closer to that. Um, but we're not quite
[1:11:26] covering all of our operating and debt
service costs even with this increase.
[1:11:30] More reason I feel it's necessary.
>> Oh, please join.
[1:11:39] » You are doing such a great job.
>> I mean, I need a break. So, thank you.
[1:11:43] » Good afternoon, everyone. I think um,
Commissioner Kavahi, I think what you
[1:11:46] were asking about was the professional
services in the storm water. That
[1:11:51] $235,000
is for the VA and the AP grant that we
[1:11:55] received from FT. So, as Andrew stated,
the revenue is shown on the revenue and
[1:12:03] outflow, but then we have to show the
cost
[1:12:06] on on the professional services side.
So, we have $250,000 budgeted for 26.
[1:12:13] The whole project was $485,000
which is a complete 100% reimbursement
[1:12:18] but it's going to flow into 27.
>> So when you budget
[1:12:25] for a professional fee for a
professional services
[1:12:30] all the consultants know what the budget
is, right?
[1:12:34] » So we received a full 100% grant for
this. So I think we're talking about two
[1:12:39] separate things. It depends on the
project.
[1:12:41] Yeah,
[1:12:45] the the only concern I have is I mean I
understand what you just said, but one
[1:12:50] of my concerns with budgeting certain
professional fees is that all the
[1:12:57] consultants are going to look at the
budget. and say, "Oh, you know, they've
[1:13:01] budgeted this much money for these
services, so let's just reduce our fees
[1:13:06] by 10% and, you know, 10% less than the
budget and um propose that to you and,
[1:13:15] you know, there's just just really not a
uh
[1:13:21] in my opinion, not the best way to to
get competitive fees,
[1:13:27] » professional services, and I can speak
only for my department. Um, typically in
[1:13:31] that budget, I have just money just in
case I need engineering on a failed
[1:13:36] storm drain or something along those
lines. So, often times I don't 100% have
[1:13:42] a set budget for design fees. Um, it's
built in within a whole entire project.
[1:13:48] So for we talked about the pocket parks
and and the Bokea neighborhood. I did
[1:13:54] not have a plan to have a consultant
engineering fee for that. That just came
[1:14:00] out of my complete overall budget.
>> Yeah. Small things I don't worry about.
[1:14:03] It's the big big ticketed items that I
worry about like couple hundred,000 or
[1:14:08] half or whatever for you know whatever
project. That's that's what I am
[1:14:13] concerned with. So
>> I think where the challenge comes in in
[1:14:17] that, if I may, is that we are a
government agency and so we have to be
[1:14:23] transparent and everything has to be in
the sunshine. So before Megan can take
[1:14:27] something out to bid, she has to bring
it to us and she has to ask for
[1:14:31] approval. So there's really not a way to
not tell it. However, um I also don't
[1:14:40] think that that would be my experience
just thinking about bids in general that
[1:14:46] we've gotten and they come in all over
the place.
[1:14:50] » The Valve grant is a great we they asked
during the bid process before the bids
[1:14:56] were due what my budget was. My budget
was $200,000. I received one bid out of
[1:15:04] seven, I believe, that was within $6,000
of my my project. Everything else was
[1:15:10] well over $100,000 more. So, I think
sometimes people do ask because
[1:15:15] obviously if we don't have the budget
for it, then they're not going to waste
[1:15:19] their time nor waste our time or even
bid because that process is quite
[1:15:25] lengthy. So it it totally is dependent
on the project on what you're looking to
[1:15:30] do. I understand what you're saying,
>> but it is hard to not have a budget if
[1:15:36] they ask for it.
>> Well, can that be a part of let's say
[1:15:39] general fund budget? In other words, can
we not draw consultant fees out of a
[1:15:48] general fund fund budget
[1:15:53] and not have to say, "All right, we're
going to be building this road.
[1:15:59] Let's budget $300,000 for the consultant
fees."
[1:16:04] and then let everybody know that we're
ready to spend $300,000 on the
[1:16:09] consultant fees. Um if if we can just
say, "All right, let's just put this
[1:16:14] much money in the budget and then in in
a general general fund and then let the
[1:16:21] consultants have that competitive fee,
whatever that may be, to present to us."
[1:16:28] Are you are you talking about the actual
construction cost? Are you look No,
[1:16:36] you're talking about just the
consultants. Well, consultant uh
[1:16:40] contracts are not based upon price.
They're based upon qualifications. Once
[1:16:47] you get that qualifications in and we
select the top one, then we go into a
[1:16:52] negotiation for unit pricing. So what we
would do is we would we would um
[1:16:58] negotiate what the you the rates are for
the professionals. Once the rates of the
[1:17:03] professionals are then set, we go into
an effort-based analysis. Meaning here's
[1:17:11] the five scope of work or five tasks we
need you to do. I'll give us a price on
[1:17:16] that. Once we get to that price, we
negotiate again. Maybe they have it too
[1:17:21] much in one area or not. So then we try
to get down to where we feel is the best
[1:17:27] price. If we can't, we throw them out
and we go to the next one.
[1:17:33] » But we also have contracts with many
different consultants so that we do not
[1:17:38] have to go out to bid dependent on the
size of the project. So same same
[1:17:44] process as Mike just stated, but we
don't have to go out to bid again. We
[1:17:48] already have them under contract. We
also know what their disciplines are.
[1:17:52] Not all cons consulting firms specialize
in transportation or specialize in road
[1:17:58] projects or or storm drain or or Marcy
needs, you know, many different planning
[1:18:03] studies or whatever it may be. So, it's
all there's a lot of different factors
[1:18:07] when it comes into selecting a
consultant for a project. We have many
[1:18:13] different projects.
>> I think I know exactly what you're
[1:18:16] talking about. having the public know
exactly how much money we are and I
[1:18:20] think it would be a great idea to
discuss it but not at this point. I
[1:18:24] mean, you know, I think like you say,
all of our projects if we have a fund
[1:18:29] and it maybe say put a million dollars
in for work related to projects that
[1:18:35] need to be come up and that would be I
think a different discussion. You know
[1:18:39] that Yeah. I because just like uh
Crystal Island project, we said we got
[1:18:44] $15 million for that project. Well, of
course, all your bids are going to be
[1:18:48] coming in around $15 million. So that's
what I believe you're trying to
[1:18:55] keep.
But but it's like we still have to be
[1:18:59] open book. So we have Yes. So
>> we have a budget.
[1:19:04] » It's listed. Everyone asks. We can't not
give them the information that they
[1:19:09] asked for.
>> And this is because this is becoming a
[1:19:13] greater conversation today. We're
talking about budgets. If you want to
[1:19:17] drill down on how we go about getting a
bid, that's a completely different
[1:19:23] conversation than today because that
would be a conversation when we get
[1:19:27] ready to take something out to bid to
try to scrutinize it. Today, we just
[1:19:30] need to try to get through the budget
because the budget's the budget. How
[1:19:35] they bid is is not budgetary related.
>> Yeah. Thank you. No, it definitely will
[1:19:42] be eventually, but I think you know down
the line and where potentially a
[1:19:47] workshop or Yeah. How not today. Yeah.
If we can indeed kind of keep the money
[1:19:53] that we have closer to the
>> No, I I wasn't trying to solve problems
[1:19:56] today. I was just trying to really
understand, you know, the mechanism
[1:20:02] as to how we get competitive. So, can I
recommend that you make an appointment
[1:20:09] to sit with Megan and the city manager
and have that discussion because you
[1:20:14] could really dig into a discussion with
the two of them and I think that would
[1:20:17] be helpful for you and for them.
>> Yeah, more than happy to.
[1:20:20] » Okay.
>> There's there's state state statutes
[1:20:23] that we have to abide by when you start
to to procure uh professional services
[1:20:29] and that's really what is running it.
>> Yeah.
[1:20:33] » Yeah.
>> Thank you. Any
[1:20:37] other questions on anything I covered?
If not, I'm just going to finish with
[1:20:40] our five-year capital improvement plan.
We can just walk through that uh real
[1:20:44] quick and then go ahead.
[1:20:49] » Um it just I probably just need to be
explained in the on page in the P not
[1:20:54] the packet the the documents page 58.
uh going into 59 maybe the budget year
[1:21:03] fund balance
uh we have the 20 27 ending budgeted
[1:21:07] fund balances for those different
departments but then when I look down at
[1:21:11] the narrative
uh there's there's a couple that aren't
[1:21:16] that don't line up that they're not the
same like on page 58 shows the general
[1:21:21] fund has a million737904
but in the narrative it says million7282
[1:21:29] 288. Uh, and is that supposed to be the
same number? And the same thing with the
[1:21:34] marina fund, parking fund, and building
fund. They have discrepancies in the
[1:21:40] narrative
compared to the chart. Am I meeting am I
[1:21:44] reading that wrong? I must just
>> um So, let's talk. So, general fund, it
[1:21:49] says the FY27 budgeted ending fund
balance declines from the FY25 ending
[1:21:54] balance of 18,987 389. that sentence
that that paragraph.
[1:21:59] » Yes.
>> Okay. So, the 18987 389
[1:22:04] is the 2025 fund balance.
>> Wait, sorry. The 18
[1:22:10] I'm not I'm not I'm not I'm not saying I
don't think we're on the same place.
[1:22:14] Okay. Yeah. The 18.
It's the
[1:22:20] » You look at it.
>> I Yeah, I've got it. I got it right
[1:22:23] here. So in in the chart get the G is it
did I say general fund general fund uh
[1:22:32] the 2027 ending budgeted fund balance.
>> Mhm.
[1:22:36] » Says
it's 1 1,737904.
[1:22:42] Am I reading? Is it right?
>> No. Yeah. But then in the narrative
[1:22:48] which is the next page it says
significant changes general fund uh 1
[1:22:55] million728
288. It's close here.
[1:23:00] » So your question that $6,000 difference
that could be an actual result that
[1:23:04] maybe came in. I had the narrative there
and then it didn't get updated for
[1:23:07] something. I can check on that.
>> Oh okay. So it's all right. Would you
[1:23:11] would you check also marina fund,
parking fund and building fund? bills
[1:23:16] have the other ones line up
but I just was desperately trying
[1:23:22] » the 1 million in the narrative the 1
million728
[1:23:26] 288
compared to the 1,737
[1:23:33] » 904 so about 9,000 that $9,000
difference
[1:23:37] » and then Marina is 5 there's a big one
in the marina 5 million 590 544 and in
[1:23:43] the narrative it says 8 million in
uh 804714.
[1:23:50] So that's a bigger
>> Yep. I'll check on that.
[1:23:53] » And
I just was noticing as we're going
[1:23:57] through here, parking fund is uh 8,94
387 and then it's just less of a
[1:24:04] difference there. 8,93
767 and same with the building fund. Not
[1:24:10] that much difference. The biggest one is
the marina. And I just those should be
[1:24:14] the same, shouldn't they?
>> Yeah, in theory. Yes. So I might have
[1:24:17] rerun the because the analysis the act
the 26 actuals are continually changing.
[1:24:23] » Okay. All right.
>> So maybe the last time I updated that
[1:24:26] table the significant changes narrative
didn't update.
[1:24:31] » I got you. Okay. I just I'm struggling
to hang on here. So I want to make sure
[1:24:34] I understand.
>> That's I love I love the attention to
[1:24:36] detail. I'm proud of you.
>> Thank you.
[1:24:43] I've got
>> I've got one little one.
[1:24:46] » Okay.
>> The backend parking fee. Did we get rid
[1:24:49] of that?
>> Yes, we did.
[1:24:54] » Okay.
>> That is I mean,
[1:24:56] » as I see all of this in here, you know,
it's it's just like we have it, then we
[1:25:01] lose it, and then
>> But that's not in the budget. That's in
[1:25:04] the fee schedule.
>> Yeah.
[1:25:05] » But that's part of the budget.
>> We did not budget for back in back-end
[1:25:09] parking. I think the parking manager
could attest. It's only if we see Chuck
[1:25:14] Dylan's car backed in, we're going to
take it.
[1:25:16] » All All others are exempt.
[1:25:22] » Yeah, we don't we don't budget for uh
fines.
[1:25:30] » But isn't that in the fee schedule? The
fee schedule, there is a fine in that
[1:25:36] fee schedule. But when we look at
revenue, we're not estimating what the
[1:25:43] revenue from
uh tickets are.
[1:25:48] » Okay. We're just take Yeah, we have if
you look at the parking fund,
[1:25:56] we have we're just looking at it's on
page 49 of the book 51 of the packet
[1:26:04] just all the revenues and the parking.
We just have one line item called
[1:26:07] parking fines that includes a variety of
different things and we basically budget
[1:26:11] that just based on looking at trends and
we can might take in effect take into
[1:26:15] account some increases around that but
we just look at you can see it was
[1:26:19] budgeted 550,000
in um 2026
[1:26:26] and budget now at 525,000. So modestly
in line with what we had in in 206
[1:26:34] budget 206
actual year to date. Let's take a look.
[1:26:41] Let's pull that up.
[1:26:44] See how hard
Jamal and his team have been working.
[1:26:49] » That is not I don't think that that is
the proper verbiage we should be using.
[1:26:56] Strike that from the record.
>> That's a terrible mindset in my view.
[1:27:02] » Strike that from the record. Let's see
the results of the infractions in fiscal
[1:27:07] year 2026 thus far. And that is at
$672,287
[1:27:15] year to date in 26. So, I'd say 525,000
as an estimate for budget revenue in 27
[1:27:24] is conservative to say the least.
>> So, if our parking fines keep going up,
[1:27:29] then we might need to spend some time in
discussion on how to better educate our
[1:27:34] visitors before we're writing so many
tickets. Because to see an increase of
[1:27:39] that large of a number in parking fines
to me says, are you really a friendly
[1:27:46] community or are you a community that's
looking to write a ticket the minute I
[1:27:50] walk away from my car or if I'm 10
minutes late to my car? So, I think that
[1:27:54] is definitely a discussion for a
workshop in the future to decide what's
[1:27:59] more important to us.
>> Yep.
[1:28:06] » Perfect. Any other questions on anything
we've covered or am I you would you
[1:28:09] going to good with me wrapping up on
capital?
[1:28:13] Perfect. And we will I will look at
those good catch on the um fluctuation
[1:28:19] analysis and I'll I'll look at those
numbers for sure.
[1:28:24] Okay. Then capital is going to be on
page
[1:28:30] um
shoot I just had it. Okay. Okay. It's on
[1:28:35] page
79 of the book, 81 of your packet.
[1:28:50] So, we it's just starts with a a the
five-year capital improvement plan. Just
[1:28:55] some narrative overview of the program.
What is a capital expenditure? We talked
[1:28:59] about that. an an any asset with an
initial cost of $5,000 or more and
[1:29:06] useful life of two or more years. It
could be a physical piece of equipment
[1:29:12] or vehicle or it could be a
infrastructure improvement to an
[1:29:17] existing asset.
And then just gives you some narrative
[1:29:22] highlights. Storm water infrastructure,
marine and waterfront, we talked about
[1:29:26] that. City Hall dock construction budget
$400,000 through the Marina Fund will
[1:29:33] improve waterfront access and support
the city's marine operations and public
[1:29:36] use of the city hall waterfront.
[1:29:43] Then sanitation. We talked about some of
the costs that we saw in the fund
[1:29:46] balance net position analysis for
sanitation. So we've got 400,000 for
[1:29:51] replacement of unit 26, the 2020
Kenworth T880 solid waste vehicle.
[1:29:57] Maintaining a reliable fleet is
essential to un uninterrupted solid
[1:30:01] waste collection service for residents.
Then we do some highlights of future
[1:30:07] fiscal years 28, 29, 30, and 31.
So when you do highlights, Andrew, um
[1:30:18] that's just for somebody to read because
the 2028 highlights are not that's not
[1:30:24] something we're going to do. Um we
talked about that in a previous meeting
[1:30:30] because until we do something with
parking, we're not building anything
[1:30:34] else at Rock Park. It would be there'
just be no way. They're struggling now
[1:30:38] with parking for the events that they
have. I'm only saying that because I
[1:30:43] don't want anybody to say that we agreed
to do what these highlights are for 2028
[1:30:49] because I think they're very inaccurate.
>> We can go through those before the um
[1:30:54] » final
>> before the final.
[1:30:56] » I think we should I think that
>> we'll do a better idea. Yeah, I think it
[1:31:00] should align more with what we discussed
in the strategic planning um for for
[1:31:07] anyone who's reading it to have a vision
of what the commission is thinking and
[1:31:11] what the city's working towards.
>> Yes. And it's also a good place if we're
[1:31:16] looking at grants. We need to have those
in our future. Uh
[1:31:22] » I'm not saying I want it to go away
because I know that if we were going to
[1:31:26] do something like this, if we were going
to build these projects, you would want
[1:31:30] to have them so that they could be shown
to the grant, you know, that we were
[1:31:34] applying for that we've we've been
talking about it. But there's no way
[1:31:38] that we would start this in 2028 because
we need parking to be addressed prior to
[1:31:43] being able to start the idea of building
um a new structure. And if something ma
[1:31:49] miraculous happened and we were able to
build a parking garage or or or
[1:31:53] reimagine parking or whatever we do for
parking at Rock Park for, you know, we
[1:31:59] could do that in the next year and then
you could do that in 2028. That'd be
[1:32:03] fantastic. But it seems highly unlikely
that we would be able to fund that.
[1:32:09] » And it says that it was going to be
funded from the loss fund. And the loss
[1:32:12] fund is going to not have any money in
it in 28.
[1:32:16] » It'll be broke.
>> Yeah. We'll we'll go through those
[1:32:19] before the next meeting.
And then on the next page 81 of the
[1:32:25] book, 83 of the packet,
there could be questions either from you
[1:32:31] all or from residents or both like,
well, we bought the $18 million
[1:32:36] property. What why is or no development
plans? And so we have a specific
[1:32:40] paragraph that addresses that that 555
avenue vacant waterfront property. I'll
[1:32:46] just read it. City's 5-year capital
improvement plan does not include any
[1:32:48] capital expenditures relating to the
development of the 4.6 6 acre vacant
[1:32:53] waterfront property acquired at 555th
Avenue. City is still in the early
[1:32:58] stages of its planning process and has
not yet developed concrete conceptual
[1:33:01] design plans or realistic estimate of
development costs. Given the scope and
[1:33:06] significance of the property, it would
be premature to budget capital
[1:33:09] expenditures at this time without a
well- definfined and costed plan. Should
[1:33:13] any capital expenditures relating to the
development of this property become
[1:33:16] necessary during FY2027,
a budget amendment can be formally
[1:33:21] approved and adopted by the board of
commissioners at that time.
[1:33:25] Any concerns with that disclaimer?
[1:33:29] Perfect. Okay.
And then this just kind of goes through
[1:33:35] your your capital year improvement plan
schedule.
[1:33:43] with 24 actual, 25 actual, 27 budget, 26
budget, current year CIP by fund. You
[1:33:52] see very light except for the storm
water on a fund by fund basis. Just a
[1:33:58] couple, you know, projects here and
there and then mostly vehicle and
[1:34:02] equipment purchases.
And then the five-year capital plan
[1:34:07] shows the fund and then the project and
then what year it's hitting. And
[1:34:13] obviously there's nothing of form as we
discussed formally budgeted in 2029
[1:34:17] 30331. That's just plan that doesn't
it's not binding or in any way or you're
[1:34:23] not appropriating money for those future
fiscal years. That's done annually
[1:34:27] through the adoption of the budget. So
that's justformational only. But to the
[1:34:30] city manager's point, we can look at
some projects that
[1:34:35] at least if they're under question or
scrutiny, then we can remove to dis, you
[1:34:41] know, remove any potential confusion or
or
[1:34:46] um concern from the public.
[1:34:53] And I we've been through this before. we
had a a a capital specific
[1:34:59] budget workshop, but I know it's been a
few months. So, um
[1:35:04] just wanted you all to be able to see
that again.
[1:35:13] And that's all I have officially planned
is if there's any questions on capital,
[1:35:17] I'll take them or any other section of
the document. I know, like I said, we've
[1:35:21] got a lot of different a lot of added
material on
[1:35:27] fund descriptions, strategic priorities,
um, community profile,
[1:35:33] all of our main policies, all our
financial policies,
[1:35:38] what's a budget balance, our purchasing
ordinance, our investment policy, cash
[1:35:42] receiping, handling policy, capital
assets policy,
[1:35:46] grant management policy, our budget
process, goes through all the different
[1:35:51] workshops and what we covered. Um and
then the the um the budget calendar with
[1:35:58] the two public um public hearings
[1:36:03] detail on FTEES, personnel costs, and
then a whole section on department
[1:36:09] program goals and objectives broken out
by departments. all your general fund
[1:36:14] departments
showing accomplishments, goals, and
[1:36:17] objectives.
A whole section on that.
[1:36:25] So, happy reading on on something
reading something other than numbers.
[1:36:29] We've got
a lot of narrative descriptions on
[1:36:32] things as well
and even performance measures.
[1:36:42] Commissioners, do you have any questions
or comments?
[1:36:46] » Very well put together, nicely, very
detailed. Thank you.
[1:36:50] » Thank you.
>> I've got one. I believe we've got two
[1:36:55] more. So, are we going to do it be two
more discussions on this and the final
[1:37:01] votes going to be September 18th, I
believe.
[1:37:05] So that'll be Yeah, let's actually go to
that page just so you can see
[1:37:10] that's going to be on page I just passed
it. The the budget process is on page 97
[1:37:16] of the book 99 of the packet.
This just gives you an overview of how
[1:37:22] the budget works. What's the process?
Gives you a budget calendar. So those
[1:37:26] are your two dates.
[1:37:30] Clara, hopefully I'm not inaccurate on
that. We got September 9, 2026 at 5:45
[1:37:35] p.m.
>> Correct.
[1:37:37] » And then September 18, 2026 at 5:05 p.m.
Those will be the two um
[1:37:42] » budget meetings,
>> the two special meetings where you'll
[1:37:45] approve the adoption of the millage rate
at 2.75 mills, the same it's been for
[1:37:49] the last 6 plus years, and then the
approval of this uh tenative budget
[1:37:54] book, and then the final will be the
adopted budget book.
[1:37:58] I expect that to be um a very uneventful
evening that
[1:38:03] » right after
>> it's just going to be a quick two to
[1:38:06] five minutes but please so if there's
anything that you might suggest you want
[1:38:10] to bring up concerns
>> I'm trying to clarify that because
[1:38:14] everybody just got their tax statements
or if they haven't gotten them they
[1:38:19] should be getting them so the millage
rate is not planning on changing
[1:38:24] » not planning on changing correct if we
wanted to increase the miller rate at
[1:38:28] this time. It would be a huge
administrative undertaking of resending
[1:38:32] out trim notices and that that's not
good. Anyways, but
[1:38:36] » just some some comments I've I wrote
down as we're going on. Appreci I I do
[1:38:42] like the narratives at the end of the
charts. I respond I just respond a
[1:38:46] little better to words than numbers. I
guess
[1:38:49] » the analysis. Yep. Nice. So, uh I I
appreciate the uh
[1:38:55] that this budget is starting to look
more normal with the exception of a
[1:38:59] couple of uh departments after the
hurricane. We're looking at something
[1:39:03] that's uh normal operations somewhat.
We're getting back to that. That was
[1:39:08] nice to see. And that we're
acknowledging future risks rather than
[1:39:11] ignoring them, including the 555
property uh and the storm water. I I
[1:39:17] know we're putting a big push towards
that, but that seems to be
[1:39:22] it seems to be a concern of the
residents that we have long-term
[1:39:26] drainage and resilience. And I
appreciate the the community
[1:39:31] conversation we've had over the last
year uh that we reflects those
[1:39:35] conversations that we've had with the
community. So overall, I I've see some
[1:39:39] positive things coming out of this
report. So, thank you for your attention
[1:39:42] to all the detail.
[1:39:46] » Is that all, Andrew?
>> Nothing further.
[1:39:50] » Then it is 3:39. We're adjourned.