City Council - Regular Meeting

I think she's now 15.

It's 9 a.m., so we'll go ahead and we'll call the meeting to order. Please let the record reflect that all city council people are present. The first item that we have on the agenda is public input. Seeing that we have no public here, we'll move along to the 2A, which is the fiscal 2027-2031 Utilities Capital Improvements Program and 27 budget.

Thank you.

Good morning, Chris and Simeone. We are just going to go over the budget for the utilities construction and OM&R funds, just so you have a preview of what will be on Wednesday. And that way, if you have any questions between now and then, we'll be able to answer them as well. I'm just trying to get just a little bit. There you go. So first we have our utilities construction fund and there's nothing too new here. They are all projects that you have seen and we have accounted for as either using changes for the state grant funding for the Helene and Milton that we received on the water RO project as well as the lift station 30 BPF MPF and a force main project. 10 million there so we we put that and we kind of separated it out so you have your estimated grants and then you also have your amounts for the financing and those were in fiscal year 26 we are still awaiting the grant agreements but they have said we can keep moving along on the project And then we have our expenditures and the various projects. So you can see it's pretty heavy the first couple years, and then it lightens up a little bit. But again, when you look at the OM&R fund, you'll see the debt service that is in those outer years. So the first portion of our capital outlay program are the annual amounts that are set aside for specific types of projects which is like utility relocation replacement and renewal of water mains some valve projects gravity sewer lift station inflow abatement and force main renewal and replacements as well and that's part of our policies of 1.1 to cash fund those types of And the next slide is our wastewater project. So currently we have septic sewer in there and it's been moving up from outer years, but it might still need to be moved out a little. So just be aware of that. We've had other higher priorities and as we are don't still have the design yet, even though we have a grant for that and Tom is working on that, we might want to move some of that construction out a little bit.

Yeah, I just wanted to mention that from my meeting with the EPA panel, that there's a considerable amount of money available for septic to sewer that we can look into.

Great. We'll work on that as well. and again some of the timing of again for cash flow purposes and budgeting purposes because it's really both you'll see that we moved up the RO project first and then the rehabilitation of the regular plant was moved out a little bit towards fiscal year 27 and I'm sorry that's going to be on the next page because that's the water side But everything else you've again are pretty standard projects here that have been on our radar. And then here are the water projects. Again, nothing too new. I think there was maybe one particular project that was new. Let's see what it was. And it may not even be on here. I think it was a water main. And again, we may have moved it up to 26, so that's why you might not be seeing it. But this is where you see the surface water plant has a little more in fiscal year 27, where before it was more even between the RO plant and the surface water plant. Any question on capital projects? OK. So then we get into the pro forma for operations, and we have our operating revenues, which is mainly the water and sewer rates that we receive. Obviously penalties or anything like that are also included in there. Fines are in there as well. Then you have your transfers from water and wastewater impacts. that will be starting in fiscal year 27 we have been having transfers from water for the RO debt and then in 27 we'll be starting to pay on the wastewater debt for the SRF loan so we have impact fees from wastewater coming in to help with those expenditures you do see increases in wastewater billings for septic to sewer and again that would get pushed out if we move the project out and same with the annual assessments On the operating side, you see the increases, and again, it's our standard increases, 4% for merits, 6% on health insurance, 3% on operating, 5% on general liability, things like that. You see the renewal and replacement of infrastructure that's the transfer to the utilities construction and then you have Other transfers to utilities and constructions for other projects. So again, it's a little lower in 27 in 2029 and that's due to the estimated use of financing which is budgeted in the construction fund and The RO debt service you can see is there. Transfer to, again, we keep a reserve as we're required to by SRF. So whenever we have SRF financing, we wanna budget in when the timing of when we need to move those funds over to keep that one year's debt reserve. So you'll see increases or decreases as needed. So in this particular pro forma, they're all increases because again, we're doing a lot more additional debt. you have your estimated new debt for your wastewater treatment plant improvements hopefully by the end of the fiscal year or early in the next fiscal year we'll have that one settled and have our final amounts on that the septic to sewer area we've talked about the AMI equipment this will be after the million dollar grant You have water treatment plan, RO expansion, the debt service for MPF, BPF, and the force main. And again, this is the amount over the SRF that we'll already be doing, the 50% grant and the 50% 0% loan. and then new debt service for water treatment plant filtration rehabilitation so you can see we're going to be increasing our debt and so we have that on the revenue side we did do follow the recommendation by the consultant to increase rates 12 percent At some point, we actually may be able to lower that, but just while we're still doing all of these projects, it's good to continue moving forward with that path. So in the pro forma, we do leave it at the 12% and 5% starting in 2030. In 27 through 2031, we do use a small percentage for growth and we do use averages for consumption because again, each year can be different. So we're trying to be very conservative and not over budget for revenues that would cause us to come short. later on. Water and wastewater impact fees can fluctuate widely. They were also included in the rate study and we're using those new rates now. Here are our revenues for impacts since 2017. Just so you can kind of see again how they fluctuate. It just depends what's in the hopper and what comes online in any particular year. And then we have our current projections for this year. Again, the assumptions continue the transfer for debt service, wastewater for some debt service, estimated annual assessments might get pushed out for that subject to sewer project. We've talked about the assumptions. personnel updates we just wanted to kind of bring up for there's no increase in positions but the division Tom has requested that a trainee position was reallocated from the wastewater treatment plant to an admin assistant for fleet so that has occurred and And then for water distribution maintenance worker position, it'll be changed from a maintenance worker to a hydrant tech position. So again, net zero, but allowing us to move forward with the needs of the departments. On the expense side, for fiscal year 27, our per departmental request was mostly flat. We did have computer overhead flat and admin charges at 3% increase. And that final will be determined when all budgets are completed. General liability insurance is estimated at 5%. And in fiscal year 28 through 31, we used 3% exception reliability insurance at 5%. And then kind of the things we did want to just point out is an additional lobbyist request for $75,000 per year, electrical and fuel increases. And we've kind of talked about those before. Electrical is about 5%. Fuel has been a little bit higher. Start seeing a little bit coming down, but not quite where it was yet. Tank washing at the water treatment plant had an increase of 137,000, and sludge hauling had an increase of an additional 150,000 per year. Any questions on that so far? And Tom is here to answer any questions for his division. Then we have their capital outlay program. So again, this is for the five year capital outlay needs of the divisions, not necessarily the construction program. So you can see which divisions have replacement scheduled over the next five years. We will update the unspecified equipment needs we generally try to keep it at least at a 700,000 and again We may need to push that up a little bit more because obviously costs have gone up since we started using that 700,000 per year as a guide Other assumptions are to continue using current revenue and operating reserves to fund the five-year CIP for certain expenditures. Again, we're following our estimated debt service Some of them are using SRF financing. Some are using traditional bank financing. And as we accumulate all of these, we're gonna explore using bonds as well and see if we can extend some of that financing. But again, sometimes it's a little harder, especially with the SRF. If we're getting a really good interest rate, you know, sometimes it doesn't make sense because there's a lot more expense involved in going out for bonds. We did talk about the estimated debt service for the various other projects So again, we tried to say if it had a grant it has SRF financing and bank financing on that particular project Subject to sewer was currently. I'm just using bank financing. But again that might get pushed out And again, we have our requirements for our reserves and Currently our reserve assumption for the utilities OM&R fund is a $3.1 million operating reserve. I do believe that should be raised and I would hope to see if council would wanna do that on Wednesday. Maybe do the 16.7 like we do for the general fund or even maybe a three month operating for utilities because again, they're very, they have to keep the water going so. We do also have a 1.5 million R&R capital reserve. We previously had that established for bonded debt covenant and when that bonded debt covenant was paid, it was determined at that time to keep that set aside for emergencies or if we do go out for bonds, we already kind of have that set aside to start with. Considerations for utilities is again, there's volatility in water and wastewater revenues. It could be based on rainfall, drought conditions, watering restrictions, economic conditions. You have uncertainty of economic forecasts and continued increases in some commodities such as chemicals. Again, we continue to work with our consultants to explore alternative financing for all projected financed projects. Again, whether the best option is SRF bonds or bank financing, we continue to look for grants as well. Legislative changes, again, regarding a surcharge for unincorporated county customers. We think that'll keep coming back, so we wanna be prepared for something like that. Our assumptions for septic to sewer could not be accurate. So again, we thought we would get a 25% grant. And again, we will continue to pursue it, but whether the timing is right at this moment or not, or if we have to push that out a little bit, we will continue to look for that. We continue to pursue opportunities with Charlotte County to kind of add these areas to their master plan for some possible road and drainage funding to be contributed to the project. And the timing of subject to sewer projects obviously could probably be increased. These numbers are a little old, but they've been what we've been using for the last several years. Any discussion at this point? Okay, thank you.

Okay, the next item that we have on the agenda is the Florida Water Professionals Month. Who would like to read that proclamation? All right, and then we have the public hearing regarding the operation of golf carts on the Tidal Creek Bridge. Any questions on that?

yeah i have a few so after kind of looking into this my what i'm reading is that council back in 2019 allowed for golf carts basically to go between you know i'm assuming like fishville or any other you know buildings that are around military heritage things like that there's not been any issues whatsoever um and from what i've i've been told basically it you it's allowing for um our citizens to be able to go from fishville to military heritage and back and forth especially in the hot weather and whatnot keeps them off of marion so i guess i'm just kind of wondering why this is being brought up

when it came up during one of the other presentations about golf carts council had a consensus that they wanted to discuss the item okay it was my impression that it was kind of a fairness issue basically we were allowing one business to or a partnership between two businesses to utilize that title creek bridge where we didn't have that available to others within the community So it is on here for council discussion and you certainly can discuss further today or have that discussion on Wednesday.

So technically if there is, I don't know if there is, but if there is other business entities that could also want that, they could come to council and ask for that as well, correct? Right now that's just the only one we haven't agreed with.

Certainly correct, yes.

And I was also curious if maybe Captain Norm could give a little information. I always like to hear from the police as far as what they're seeing. And that's it.

Captain Norm Naurup, Magura Police, just for the record. So we have not had any complaints in reference to this since it's been allowed. And my concern is if it's taken away, you're gonna have people driving from Fisherman's Village to military heritage museum which we all know a lot of people like to make a left turn out of there and it's marrying avenues in one way so that puts the public in danger um fisherman's village could easily register their vehicle and drive they'll have to you know go up ma to olympia and do all that which now you're pointing more people in danger. Since there's been no complaints on it, it really does provide a lot of safety for the community. We have a retirement community, a lot of veterans. And that's the whole purpose of them asking for permission to do this. I will tell you, I've been to Fisherman's Village for several events over the years, and I have personally witnessed, they abide by everything. They'll sit there for five minutes and wait for all the pedestrians to cross. They're not putting anybody in danger.

Thank you.

Questions?

So I thought we were bringing this up because it's a liability issue, the fact that we even have this on the books.

opens us up to a liability if something god forbid were to happen because we allow it our ordinance allows it and that's why this was brought forward so is there anything that if that's a concern mr leskovich that we could do to have a hold harmless or something something in writing just like we do for other public right-of-ways or other you know city properties there is a whole heart i mean yes there is a liability concern

that if something happens the city potentially could be held accountable you could potentially have a hold harmless as well with fishville and or military heritage museum the issue is is if someone is going in between the two establishments on that bridge there how are they going there how are we going to be able to say they're going from point a to point b and not just using it as a pass-through but you could do a hold harmless.

Do you feel like the liability could be cured?

Only between Fishville and Military Heritage Museum.

Because that's what the agreement is.

Because that's what the agreement is, but it doesn't expand to everybody else. Right, okay.

Thank you. That's all I have.

Anyone else? All right. Then we have the Auditor Selection Committee. Have you all had a chance to think about that a little bit and have people in mind? Okay, so we'll be ready for one.

Has it been advertised?

It has not, no.

Would it have to be advertised? Oh, she's gonna answer that.

City Clerk Sarah Walsh, for the record, no, this resolution does not require advertisement.

consent agenda any questions on anything on consent okay now we're to the regular agenda the fiscal 2027 budget status update for sanitation building and gas tax

OK, so the first section was the sanitation budget. I'm Kristen Simeone, for the record. And we do have Jennifer Dahmen here, who is the supervisor for sanitation. We kind of just give you a little history from 2006 to 2026, where we were at and what's increased and how much. So you can see over the 20 years how much it's increased, 113.7% overall, with the biggest area being in the recycling. Staff has not grown during that time very much, except 21. We went from 19 to 21, so two employees in that time. And that was 10.5%. And then the number of residential units has increased 29.1% during that time. And that should say 26, just mischanging the title of the column. Here's our rate history for that same timeframe as well. So again, we've had a 57.3% increase during that time. Here's our original fiscal year 26 budget compared to the proposed 27 budget. So again, they did try to keep it very low as much as possible. For recycling, the rates are staying the same, but they still have a little bit of an increase due to growth and new properties coming on board. So the current fee is $30.20. We still recommend moving ahead with the $1.50 refuse yard waste fee increase to $31.70. And that is, you know, again, we have to maintain the vehicles, the packers, and have replacement schedule in place for that as well. For fiscal year 27, it's balanced with the recommended increases. Salary and wages increased up to the 4% merit increases. Health insurance, so right now it shows the 8.5%, but that will be reduced to the 5.5%. We're working on getting those all entered into the system. The defined benefit plan is per the actuary spread over all funds on active employees, and defined contribution plan for anyone that is still in that plan is per their elections. Workers' comp is estimated at 10%. Administrative charges, again, are estimated at 3% and computer overhead flat, and that will be determined once all the budgets are completed, we do the full spread. Again, we talked about the recycling is at the current price with a slight increase for growth. Contractual services for temporary labor is at 60,000 to cover vacations, sick, FMLA, injuries, or employee turnover. And I'm so sorry, I have Jen here. Did you want her to go through the expenditures with you or you're okay with me just moving forward?

I'm okay.

Okay, thank you. General liability insurance increase is estimated at the 5%. Repairs of packers and equipment has an approximate 3% increase. Landfill fees are based on the estimated tonnage and increase in rates, which is an approximate 10% increase over the prior year. Fuel cost is currently estimated at a 14% increase due to the prices. But again, we may be able to reduce that as pricing continues to come down. Capital outlay is per the updated five year plan, which is right here. So again, we're trying to replace one packer per year. So that way, instead of having groups of packers that all age around at the same time, if we can do one per year, we'll always be having a turnover and having newer packers in our fleet. They also were requesting the loader replacement in 27. That has been planned. That was a 2012 clamshell loader. And they have a pickup truck out in 2031. With that information, the pro forma, with the increases, which you'll see on the next slide, we are able to maintain with still having adequate reserves. So even though the reserves are about 12% and 27, again, each fund doesn't spend exactly everything that they project, so we would hope that with those savings, we'll be closer to our 16.7% there. It's just not a need for concern at the moment. So then we have our estimated increases over the next five years as well. So again, we have the $1 50 per year on refuse and yard waste and recycling is flat until 29, which then starts using a 3% CPI increase. We did a comparison with surrounding communities and I added the column one pickup versus two just so it was on this slide as well. I know it's in our budget book, but I thought it'd be easier to see here as well and whether they're outsourced or not. So as you can see, I was able to find certain communities that already have their proposed fiscal year 27 as well out. So we did add that to the chart. So you can see on the borders, not quite at the top, but they're not at the bottom either. But we do have a very responsive department for all the citizens needs. did want to point out for the city of Sarasota their proposed increase of three dollars and sixty three cents per month is to fund a natural disaster debris collection reserve and then Northport is proposing a one-time not to exceed amount of a hundred and twenty eight dollars and one cent for fiscal year 27 so just be aware of what those increases are there No, there's, I'm so sorry, I should have written what that one was about. I'll go back to my notes at the office and get that and have it for you for Wednesday or get it out later today. and then um you know the once per week pickup so currently our staff does two pickups per week at 380 390 dollars and 40 cents per year that's the annual cost if we did option one city staff doing once per week the estimated reduction is two positions in one packer so that would reduce a dollar ninety per month that includes the insurance, some fuel, the the two employees, things like that. Option two. And again, this is just using the estimate from Charlotte County. Their current estimate is 336 85. um for the year whether we could either piggyback or be able to obtain the same rate if we went out to bid we wouldn't know until we did that but it's just something to give a little comparison to On option one, there is a possibility we could reduce one more team. However, we do not have a routing software currently that could actually do that work for us to determine if we could do it. Because again, those Packers are gonna get filled filled quicker and so there's gonna be more trips in time away from picking up because they'll have to be going offloading their debris in the middle of the day and then coming back and then starting the next route which may require them to hold that Debris until the next day to go and dump it. So again, until we have a good routing software or a consultant that could redo the routes, we can't make the determination that yes, we could definitely do two routes. We know we could do one, possibility of two.

has there been any option or thought about during the summertime when it's not as heavy maybe to go to once a week instead just during that time I think you were saying though that's when a lot of staff takes vacation though a lot of staffs on vacation and I think if I'm not mistaken some of the

reasons that were given for maybe not doing that during the summer is that's the time where it's the hottest so that garbage is starting to get it's worse than during the winter so for the residents they would prefer the two and two during the summer but if we do have to deal with issues due to funding with property tax it's a simple solution

I mean, I just pack my garbage up nice and tight. I rinse the nasty stuff out, and I don't have problems with smell. So there's ways to deal with it. See what happens.

So this particular fund is only funded by the rates of the ratepayers, so it's not affected by the property tax reform. That's true.

Kristen, can I ask you one more question? Sure. It seems every year workman's comp has increased by 10% every single year. Is that a norm and an average? And have we had a lot of workman's comp suits that actually have needed this?

So we just use an estimate of 10% during our budgeting process. That's not necessarily what comes in. It just comes in too late for us to bring to you. So we have to use an estimate to start. between workers comp and the general liability, sometimes like workers comp will come in under the 10%, but then the general liability comes over the 5%. So, but we do make that, we do base it on actuals when we actually obviously get our premiums. But for budgeting purposes, we've just been using 10% because we don't know at the time we're doing our budgeting.

and i think that's was where i was coming to is that you actually adjust it so that the next year it's not like a 10 in the next year you just add 10 in the next year you have 10 you actually adjust it to the proper amount and then at 10 yes perfect that's perfect thank you so any other questions on sanitation

and i do have ron kahowitz here for building department um if you'd like him to come up and speak um i can let him go over the expenditures if you like or if you'd like me to just keep moving and then just have any questions for ron what would you prefer Just keep me going? Okay.

Unless he wants to talk. Doesn't matter.

Do you prefer? Okay. So for fiscal year 27, this fund is balanced. No change in fees are currently proposed, but they are being reviewed for future updates. So we are looking at the various fees that this department charges and see where we can make some adjustments. personnel estimates are the same as we've talked about we will be reducing the health insurance to the five and a half percent for fiscal year 27 and then we use the estimate of six percent for the rest of the years they have requested to reclassify reclassify a position to the floodplain coordinator pending the pay and classification study Operating estimates are per the departmental request Computer overhead is flat and administrative charges are at 3% increase And again, we will reallocate that once all the budgets are done liability insurance 5% The fund has requested Contractual services for scanning is still needed and temps for any weather events so they have budgeted a hundred thousand for those those two needs and In fiscal year 28 through 31, the operating increases are 3% except general liability at 5%. Contractual services we did bring down to 60,000 per year and training to 25,000 per year. They do have scheduled pickup truck replacements of 70,000 in 27, 29, and 31. All these replacements will upgrade their current pickups, which are half-ton crew cabs. I'm sorry, they're quarter-ton crew cabs, and they'll go up to a half-ton crew cab and 4x4s. Again, the department will continue to monitor and adjust the staffing if activity warrants and revenues and reserves allow. Operating reserves are maintained for future stabilization and additional rate increases and or reduced operating may be needed by 2031. And that's just because we currently see a little bit of a negative, but again, we'll keep our eye on that as we move forward through the next five years. The budget is to be reviewed by the building board for recommendation to maintain those excess operating reserves. We do bring that to them every year. So here's the pro forma and you can see in 2031 is where we just get too low and actually show a negative so we would have to do something before then to resolve that issue. This particular chart kind of just shows the actual permit revenue ending reserves and positions through fiscal year 2025. It's projected in 26 through 31. So you can kind of see that in 25 our revenues have come down from a high back in 2023. We are still projecting a little lower year for fiscal year 26 and then going back up again in fiscal year 27 based on particular projects that they know about at this time. Any questions?

Where do we stand on moving to the automated permitting system?

so bronco how it's building i mean we have the funds allocated for this year so hopefully that will be done this year i think we're down i don't know how much i can say but we're down to seven companies and we start that process about the second week of july of going through those awesome thank you

So next is the gas tax funds. And we do have Dave Myers here from right of way for any questions related to that. the first part is our five cent gas tax fund this is the one for the pavement management program so we have our total revenues and our total expenditures and you can see they're a little bit more in 27 to kind of get caught up on a few things but then it's going down based on the needs assessment study that they did they are moving from the like a full repavement to rejuvenation for a lot of the roads because they're in pretty good shape. So in the additional five cent gas tax funds, the funds are at 285,000 estimated for 27. We are still waiting on the state estimates that come out in July, in August, so we'll keep an eye on that. We may have to adjust it for your August 15th proposal that we send out, or it may be between the proposed and the final that we have to make that change. It just depends on when they give us those numbers. We do estimate 2% per year increase. And then in fiscal year 27 through 31, the general fund ad valorem was decreased from $709,000 to $459,000 per year. It's just a little chart kind of showing you the two sources. That's the fun one for finance. So that's on the pavement management program. And then we have our six cent gas tax fund, which is kind of like a lot of the other items that are needed to take care of our roads and sidewalks. It is balanced with use of reserves through fiscal year 27. We will need either a general fund subsidy or an assessment district if revenues do not increase above the projections or expenditures are not reduced. Again, they do have a increase in there for fuel, so if that comes down, that'll help a little bit as well for the next years. So their estimate of gas tax revenue is $693,600, and we have 2% growth per year. Other revenues are per contract, and that's like the traffic, except for one contract, which council previously, earlier this year, transferred to the county, and that was the traffic signal maintenance. For the expenditure side, they're per division request. Administrative charges, as we've talked about, 3% increase, but will be adjusted based on all updated budgets. Electric is estimated at 5% increase due to the FPL rate increase schedule. they've had increases in street sweeping right-of-way railroad crossing the gasoline department material supplies traffic signs and street patches and bridge repairs they're all increased over the original fiscal year 26 budget due to increase in just in the cost of services and the supplies due to inflation Fiscal year 28 to 2031 about half the expenditures. We're trying to hold flat Completely and the other half we have estimated 3% increase again. We're just trying to get those costs down a little bit But as we mentioned we may need to talk about subsidies or an assessment district if we cannot Maintain that just with gas tax funds. I

any questions there okay then we're on to the budget update for marina special use and city leased real estate before you start that kristen i have a rj gorman status hearing at 10. so i'm going to head out but i don't think anything else on here has any questions for me thank you thank you i'll see you guys wednesday morning thank you

Did you have anything to say to us otherwise?

No, just you guys have the binders here. We'll go through that just to give you some preliminary stuff to talk about on Wednesday, though.

Did Sarah have you sign anything this morning?

No, ma'am. She's about to, though. Okay, thank you.

Okay, for the Special Use Fund, the fiscal year 26 revenues from insurance recoveries and FEMA reimbursements, some are estimated based on pending obligations. Other revenues for fiscal year 27 through 31 are the interest on our fund balances and Punta Gorda Housing Authority loan repayment. The reappropriations and appropriations will be brought to council in August. We're just still trying to gather all that data. Transfers as approved in prior years will be brought forward in the reappropriations. Additional appropriations will be made as FEMA obligates more projects in fiscal year 26 and fiscal year 27 for hurricane projects. So we did show you the projected 26 just because it also has a lot of the detail for what's currently going on, right? So those transfers for general construction, we transfer them when we actually expend those funds. Since they haven't been expended, we haven't transferred them over. So if they're not expended by the end of the year, we'll reappropriate them again in 27. Same thing on the Transfer to General Fund. That was for the LDRs, so there was a little bit of money left there. Hurricane projects, again, we're at about 4.5 million there. We'll carry those over for whatever's not complete. So this fund is doing okay. Then we go on to our city lease property fund and we currently have two divisions there We have the Herald Court operations division and then we have the non-departmental division in the Herald Court division it's more mostly operations and maintenance of the parking structure and the public facilities and tenant common areas our revenue sources are the leases and common area maintenance fees and So we assume that we have reduced leases at this time for the Punta Gorda chocolate and wine and Punta Gorda coffee and tea. But we do assume that the city is going to continue to use the FGC units at least through fiscal year 27. And that will also have the use for the fire administration down there below beginning in fiscal year 27. They're going to use the Punta Gorda bowls and Punta Gorda coffee and tea area. We do assume that the Punta Gorda chocolate and wine location pending council approval might be filled, so we did put that in the pro forma. Operating expenditures are per 27 requests. And in 28 through 31, again, we have to try and leave some flat, some with an estimated 3% increase, and then insurance at 5%. Again, we are trying to accumulate funds for larger capital projects for the common areas and allocated portion of the parking garage. We will be reviewing CAM to see if we should be doing an increase. And that might help a little bit for the short term. But we may need subsidy from non-departmental division or the general fund due to use of rentable units by the city. So again, if they were fully leased, we would have those additional funds accumulating for use. But because we're not leasing those and the city is using those properties, besides the common area maintenance, we're not charging ourselves lease revenue. So again, it is fine through fiscal year 27, just a tad short in 28. But again, when we budget conservatively, we hope to get another year out of that. And again, if City Hall is put back as soon as possible, we would move and you would have that space to rent again. For the non-departmental division, we're using some of the remaining fund balance and lease revenues towards projects previously funded by the CRA. So one of the projects that's currently being done is the resealing of the parking garage. So again, it's using some of those savings that were from the Herald Court division and a larger portion from the non-departmental because again the parking garage is for all citizens it's used by everyone not just the tenants and again revenue sources are land leases and interest income So the land lease revenue is the marina ground lease, wine set lease, and Synovus ground lease. And again, we can use those accumulated funds toward marina repairs, Herald Court Center repairs, or other property previously funded by the CRA. And here's their non-departmental division. And again, you can see the balance there is pretty good. So that will help us in the short term if we have to help out the Herald Court Center area. And we're gonna move on to marine operations unless you had any more questions on that, okay. So the projected slip revenues are in fiscal year 26 and 27 have increased a little bit due to the additional slips that were repaired and with permission from the state allowed to be rented now. Fiscal year 27 projects, projects, No mooring field usage due to repairs to be completed within the fiscal year. Fiscal year 28 through 31 projects mooring field usage for the full year at 50% occupancy until estimated usage can be calculated. So until we see how full our marina gets and how many people want to use that, we did use 50% at this time. in fiscal year 29 through 2031 we do project that all slips should be back in use includes estimated grants for operations of the pump out boat in fiscal year 27 through 31 we also have ship store rental revenue and we estimated a certain amount for community room rentals We are still awaiting FEMA obligations for Hurricane Ian and Hurricane Milton repairs. We adjust rental rates as needed for the mooring field and slips when back in service. So again, we'll review the area rates for comparison as well. But at some point, those do need to be increased as well. And we're working on the boat ramp parking and or boat ramp fees, ordinances, and rates.

I don't know if the rest of you were invited. Senator Moody is having a press conference on Wednesday, over a billion dollars that she's bringing to Florida.

And so for fiscal year 26 through 28, again, there's a reduced budget to minimal service. Continue to review for service level reductions while maintaining requirements of the submerged land lease. In 29 through 31, we started putting funds back for dredging and the dock mooring field repair and maintenance. These two particular accounts were always, if it wasn't used, continued to carry over to increase and have a balance to make repairs as needed that might be larger in any given year. So again, that it doesn't affect one year only, you're continuously already saving for it. Other operating is at 3% estimated increases, except for liability insurance at the 5%. Again, we talked about considering the use of city leased property reserves to supplement if needed. And the marina management of facilities is on month to month contract currently. So here's the pro forma. And it's, again, being very conservative and trying to maintain what we have. We're good through fiscal year 28. But in fiscal year 29, we're a little short. So again, we would be looking at what else could we do. Any questions on the marina? No? OK.

And we're on to the military discussion.

Okay. So this first slide just kind of gives you a history of taxable values starting in 27 and moving up through fiscal year 27. So in fiscal year 26, the final number was approximately and these are in thousands. So you talk about five point billions, $5.2 billion, right? And that was a 2.7% increase over 25. For fiscal year 27, our July 1 number is coming in under that number, so it's a 3.1% decrease from the prior year. new construction changes were 18.5 million. So we are still having some new construction despite some. Your items coming off the roll are coming in under the estimates the taxable values. I did want to bring up the general fund pro forma. It's the same one that you last saw. The estimated insurance savings will be approximately $140,000 and that will go through the full pro forma once we plug in that number. But I just wanted you to have that for information. For millage rate discussion, we have our current rate and what that ad valorem would look like, a rollback rate, which is higher. It's at 4.0074, and a rate to provide flat ad valorem. So if you were trying to keep it exactly the same, what would that rate look like? So those are the three options that we probably would be discussing on Wednesday. Rollback rate would allow additional revenue that's provided by the new construction. So you'd have $135,000 extra revenue. The current rate would be 3.46 below the rollback rate. That revenue would reduce our revenues almost $540,000. The rate to provide flat ad valorem is .69% below the rollback rate. So that revenue is essentially flat. It would increase approximately $280 and that's just because you can't go out any further with the digits. The proposed rate provided on truth and millage notices would still allow for decreases, but once you've picked a number for that trim notice, you cannot go above it. So again, when we're talking on Wednesday, if there's any thought and you're unsure, you could always start with the rollback rate and still come down for final. I did also want to provide this pro forma again. This one was the one that shows legislative reform, if approved, so you can see the decreases that would be expected in 28 and 29. In 30 and 31, again, we've estimated additional decreases, but the legislature would be working on what those actually would be. Again, just showing what was used in the pro forma for these estimates. We did want to talk about the MSU timeline. So for an MSBU to be on the 2027 tax roll, which is our fiscal year 2028, council must adopt an authorizing ordinance and assessment rule by January 1, 2027, meaning this deadline will be difficult. We would need to get a consultant on as soon as possible to develop preliminary assessment role in the summer for public hearings and notice requirements to be met before January 1, 2027. I did also speak to the county on Friday, Diane from their MSB unit, and they have their own Timing requirements as well and they need to have the boundaries and properties by October 31st So they can be keying them from October from that October 31st through December 31st They're concerned. They're not going to have enough staff at this point They're not sure yet. But the county is also going to be talking about additional MSP use so depending on how many are Provided to them. They're they're a little worried on that end. I So we may have to focus on our highest priority MSBUs first and add others in the following year. The challenge is many agencies are starting this process and availability of consultants may be limited for such a short timeframe to complete. so we kind of gave you some options do we want to begin the process now in an effort to create one or more msbus for fiscal year 28 if possible begin the process now but for the 2028 tax roll which would be fiscal year 29 so just starting to plan in advance or delay until november 2026 pending the outcome of the vote and that'll be for your discussion do you have kristen do you have um what you think are priorities for msus do you have a list of we would think drainage would be one of our highest priorities um like storm drainage roads fire assessment might be third And the only reason I would put that one third and not first is just that the reform allows those property taxes to be used for public safety. So those are the first ones I would say. You'll have to talk about lighting too, you know, like anytime there's lighting needs, maintaining the lightings. I don't know if parks can be an MSPU or not. I haven't seen many people do parks as an MSPU. But that's one I keep trying to think, what would we use to cover our park services?

Any comments or questions at this point?

Okay, thanks Kristen. Appreciate the Kristen show.

Okay, then we are on to the agreement award to Johnson Engineering to plan design permit and construct improvements for the booster station and water mains. Questions on that? Water main improvements and a preliminary design report for the booster facility improvements. That's an award to Johnson Engineering as well. Questions? Okay, approval to piggyback the state of Florida alternate contract for networking upgrades. Any questions on that? No. Florida League of Cities voting delegate.

Why is this even on the agenda?

Because you have to designate one person to be able to vote at the meetings.

Yeah, I'm already that person.

Oh, did we already, Sarah?

I've been the voting delegate for a year and a half. And I am the council rep to the League of Cities.

As part of the annual conference process, they ask that we designate who we wanna have be the member at that meeting. It's just an annual thing they do.

Okay, and boards and committees? Okay, Sarah, did you have any comments? Nope, okay, I do not have any comments. Vice Mayor Polk?

No, no comments, thank you. Council Member Julian, Vice Mayor? Nope.

Nope, nope, nope. No public for public comment, so we are adjourned.