City Commission - Regular Meeting

Go ahead and call to order the City Commission meeting of Monday, July 27th at 6 p.m. to order. Can we get a roll call, please?

Commissioner Davis.

Here.

Commissioner Dollison. Here. Commissioner Birdsong.

Here.

Mayor Pro Tem Mercer. Here. And Mayor Yates.

Here. Okay, we have the invocation led by Bishop Willie Mincy of True Holiness Tabernacle, followed by the Pledge of Allegiance led by City Clerk Vanessa Castillo. Please stand to favor.

yeah we pray kind father in jesus name we are grateful for the gift of this wonderful day this is the day you made we will rejoice and be glad in it thank you for your love your mercy your grace and your power thank you tonight that we are gathered in this chamber one more time for this commission thank you oh god that you have blessed us to be here for the business of this city lord i ask that you would give wisdom knowledge, and direction because you see steps of good men were ordered by you. I pray your protection over our city. I ask that you bless it, O God, and keep us by your divine power. Bless the night and all that will be done and said that it will bring glory, honor, and praise to your wonderful name. And we will tell you thank you for all things. We ask it in the wonderful name of our Lord Jesus Christ we pray. Amen.

Amen.

which stands, one nation, under God, indivisible, with liberty and justice for all.

Good evening, Mayor and Commissioners. We have but one presentation for you this evening, and this is a proclamation recognizing Florida Water Professionals Month. We have with us a number of employees from the Winter Haven Water Department. I believe Mr. David Nicholson and others will be joining him at the podium for this receipt of the proclamation. It reads, whereas the Florida Water and Pollution Control Operators Association, organized in 1940, is a nonprofit trade organization that promotes the sustainability of Florida's water utility industry through workforce development to protect the health of Florida's citizens and to preserve the state's water resources. And whereas this organization offers water and wastewater treatment plant operator and water distribution operator training courses required for the state of Florida's operator licenses, eight voluntary certification programs, and continuing education programs for operator license renewals. And whereas this organization is recognizing the importance of the Florida statutes and administrative code that regulate the water industry, acts as a liaison between the florida department of environmental protection and industry personnel and whereas the florida water and pollution control operators association recognizes all who serve all who have played a significant part in operating and maintaining drinking water wastewater and storm water systems in florida by celebrating florida water professionals month which applauds their constant efforts to protect our health and environment and whereas water professionals are essential first responders as defined by Florida Statute 403.865 during storms and other catastrophic events, working to ensure safe drinking water and safe disposal of wastewater for our communities. Now, therefore, William Bryan Yates, Mayor of the City of Winter Haven, Florida, does hereby recognize August 2026 as Florida Water Professionals Month in the City of Winter Haven and asks our citizens to join us in thanking these water and wastewater professionals for their dedication and hard work in providing safe drinking water and protecting Florida's environment and natural resources. And witness whereof he is here unto says his hand and caused the seal of the city of Winter Haven, Florida, to be affixed this 27th day of July 2026. Signed, William Brian Yates, Mayor. Attest, Vanessa Castillo, City Clerk. Thank you.

Honourable Mayor, Commissioners, City Managers, my name is David Nicholson, the wastewater treatment plant manager, and I am proud to stand here before you this evening on behalf of the Water Department to accept this proclamation recognising Florida water professionals. I'd like to sincerely thank you for this recognition. Every day, the dedicated men and women of our water treatment, wastewater treatment, collections, distribution, engineering, customer service and our admin and support teams work around the clock to provide safe drinking water, protect public health, safeguard our environment and ensure reliable service for our community. Much of this work happens behind the scenes, but it is essential to the quality of life we all enjoy here in Windsor Haven. As we recognize the professionals who provide these essential services, we also encourage our community to remember that water is one of our most valuable and finite natural resources. Every drop we conserve today helps protect our lakes, rivers, aquifers, and drinking water supplies for future generations. By using water wisely and supporting responsible stewardship, each of us play an important role in ensuring that this precious resource remains available for our families, our community, and the environment for years to come. Thank you again for your continued support of our water professionals and for recognizing the important work they do every day.

Amen.

You know, they all work for these guys who work at the wastewater plants, so wash your hands. All right. On the count of three.

One, two, three. One more. All right. Thank you.

Okay, we've got no developments of note, no minutes to review. At this time, we'll take comments from the audience. Is there anyone from the audience that would like to speak to anything that is not on tonight's agenda? Seeing none, we'll move forward to Ordinance's second reading, which we have none. And then we have our consent agenda.

Commissioners? Mr. Mayor? Yes. Move approval of the consent agenda.

Motion's been made. Any further questions or discussion about the consent agenda? Seeing none, all those in favor signify by saying aye. Opposed, like sign. Motion carries. Resolution R26-20.

City Attorney? Thank you, Mr. Mayor. Commission Resolution Number R-26-20, a resolution regarding a change in the meeting date for the September 14, 2026 City Commission meeting pursuant to Section 2-26 of the City's Code of Ordinances providing a conflict clause and providing an effective date. Thank you.

City Manager?

Thank you, Mr. Mayor and Commissioners. The Polk County Board of County Commissioners will hold its budget public hearing on September 14, 2026. That happens to be the same day that we would normally have a scheduled City Commission meeting for Winter Haven. In light of that, it's recommended that that meeting be rescheduled for the City of Winter Haven to Tuesday, September 15, 2026, at the same time of 6 p.m. The proposed resolution is presented to the City Commission for its consideration and passage in accordance with the provisions of Section 2-26 of the City's Code of Ordinances, and I'm recommending the City Commission approve Resolution R26-20. Thank you.

Commissioners? Yes, sir.

Go ahead.

Mr. Mayor? Yes. A motion to approve resolution R2620.

Thank you. Motion's been made for approval. We'll close the commission meeting, open a public hearing. Anyone wish to speak to this item? Seeing none, we'll close the public hearing, reopen the city commission meeting. All those in favor, signify by saying aye. Aye. Opposed, like sign. Motion carries. Ordinance first reading. We do have two first readings. However, they will be both voted on this evening. So we'll start off with 026-16, City Attorney.

Thank you, Mr. Mayor. Ordinance number 0-26-16, an ordinance amending Ordinance 23-24, the Winter Haven Comprehensive Plan, by amending the featured land use element, neighborhood preservation, and revitalization element. housing element, transportation element, transportation map series, infrastructure element, infrastructure map series, public school facilities element, recreation and open space element, parks and recreation facilities map series, conservation element, intergovernmental coordination element, private property rights element, and capital improvement element to extend the planning horizon to 2050, repealing all ordinances in conflict herewith, providing for the administrative correction of scrivener's errors, and providing an effective date. Thank you.

Thank you. City Manager?

Thank you, Mr. Mayor and Commissioners. I'm going to request that Eric Labbe, our Director of Economic Opportunity and Community Investment, present this item as it originates within his department.

Yes, sir. Mayor, commissioners. Ordinance O2616 is the administrative request to adopt the 2050 Winter Haven Comprehensive Plan in response to our 2025 Evaluation and Appraisal Report, which is also called the EAR. As part of growth management legislation adopted in 1985, All governments are required to periodically conduct evaluations of their comprehensive plans to ensure that they are consistent with current state law. The deadline for the city's fourth year was October 1st, 2025. We did transmit that. Planning staff completed its review and submitted that on September 30th in response to that year report We are required to make two modifications to our comprehensive plan one is To provide for a 20-year planning horizon So in order to plan for that we're going out to the year 2050 and to update our population projections within that comprehensive plan document those changes have been made we used Kim Lee horn as our professional consultant to do the population and projections. This was presented to the Planning Commission on July 9th, 2026. There were no public comments and they unanimously voted to recommend approval of this ordinance. Staff does recommend approval of Ordinance 02616. Thank you.

Thank you. Commissioners?

Mr. Mayor? Move approval of Ordinance 02616 on first reading.

Okay, motion's been made for approval. We'll close the commission meeting, open the public hearing. Anyone wish to speak to this item? Seeing none, we'll close the public hearing, reopen the city commission meeting. Commissioners, any questions or discussion?

And really the only thing you're voting on is simply it's transmittal to the Florida Department of Commerce.

All those in favor signify by saying aye. Aye. Opposed, like sign. Motion carries. The second reading will be to be determined. Yes. 026-17, city attorney.

Thank you, Mr. Mayor. Ordinance number 0-26-17, an ordinance amending ordinance 23-24, the 2035 Winter Haven Comprehensive Plan by revising the future land use map series by adopting the 2050 future land use map series, repealing all ordinances in conflict to with providing for the administrative correction of discriminators errors and providing an effective date.

Thank you, Mr. Mayor and Commissioners. This is somewhat of a companion ordinance as it also generated from the ear. I'll ask Mr. Labbe to elaborate further.

Yes, sir. We are required to adopt this separately by ordinance. So ordinance 02617 is the request to adopt the 2050 future land use map series. That map series did need to be updated as over the years there are annexations which have been applied a city of Winter Haven future land use. So we have updated reformatted that map series. And they were also presented to the Planning Commission at the same July 9th meeting. And, again, they unanimously recommended approval of adoption of that future land use map series. And staff does recommend approval as well. Thank you.

Commission?

Go ahead. Mr. Mayor, motion to approve Ordinance 02617 on first reading.

Okay, motion's been made for approval to submit this to Florida Commerce. We'll close the commission meeting, open the public hearing. Anyone wish to speak to this item? Seeing none, we'll close the public hearing, reopen the city commission meeting. Commissioners, any questions or discussions? Seeing none, all those in favor signify by saying aye. Aye. Opposed, like sign. Motion carries. Again, second reading on that is to be determined. No votes on this one tonight, but ordinance O-26-18, first reading city attorney.

Thank you, Mr. Mayor. Ordinance number O-26-18, an ordinance of the City Commission of the City of Winter Haven, Florida, relating to utilities. Amending sections 19-80, 19-150, and 19-151. of the Code of Ordinances of the City of Winterham, Florida, adopting a revised schedule of charges and fees for the reimbursement of costs to the City for the treatment of industrial wastewater, providing for an automatic increase of up to two and one-half percent of such industrial charges and fees on the first of each October without the need for hearing, clarifying the applicability of certain rates, fees, and charges to industrial users subject to the industrial pretreatment ordinance, eliminating obsolete industrial cost recovery program requirements and deleting sections 19-176 through 19-180 of the Code of Ordinances of the City of Winter Haven, Florida, providing for the repeal of conflicting ordinances for severability for codification and for the administrative correction of scrivener's errors, providing for an effective date.

Thank you. Thank you. City Manager?

Thank you, Mr. Mayor. We had a lengthy discussion and presentation on this Wednesday evening, but I will review some of the high points of the staff summary report. The Industrial Pretreatment Program, also known as IPP, is a federally mandated program designed to control the discharge of pollutants from non-residential sources into the public sewer system. This program protects wastewater treatment facilities, its workers, public health, and the environment by ensuring that industrial users comply with local, state, and federal regulations. Under the IPP, industries are required to pre-treat their wastewater to remove, reduce, or alter pollutants prior to discharging it into the city's domestic wastewater treatment facilities. Winter Haven's IPP includes surcharge rates to recover costs of treating high-strength wastewater, These surcharges are applied when an industrial user exceeds their permit allotted levels for wastewater flow, biochemical oxygen demand, also referred to as BOD, and total suspended solids, or TSS. The initial ordinance was passed by the city in the 1980s to establish an industrial cost recovery program. In 2004, the city's wastewater plants were modified and expanded without the use of federal grant aid, and accordingly, the capital recover surcharge rates that were in play at the time were modified as a means to recover the capital investment associated with using treatment capacity at the water treatment facilities in excess of the amount contracted for and paid through connection fees. Ordinance 2618 is based on a technical memorandum of July 1st, 2026, together with a draft executive summary dated September 9th, 2025, that was prepared by the city's consultant, Jones Edmonds. The ordinance will take effect on January 1st, 2027. Staff is recommending the City Commission approve Ordinance 2618 and authorize and ratify any actions taken or to be taken by the city manager or designee related to this matter. For a little further follow-up, there are three present-day industrial entities that are permitted as part of our industrial pre-treatment program. Those include Ball Manufacturing, former Florida Can Manufacturing, New Dairy, which was formerly Borden Dairy, and Indian River Transport. Those are the three that have industrial pretreatment permits. The intent of this is to ensure that the costs associated with the treatment of higher concentrated elements within industrial wastewater from those facilities are accounted for within the rates. So Jones Edmonds crafted the rates for that based upon removing the capital recovery cost, as we discussed Wednesday night, but also adding in new surcharges related to total phosphorus, total nitrogen, fats, oils, and greases. And Mark, I'm drawing a blank on the fourth one. Total suspended solids. Total dissolved solids. Total dissolved solids. We already have total suspended solids. Thank you. TDS. So the TDS. There was a question that came about. I responded to all the commissioners earlier today just clarifying that there is a two and a half percent escalator or indexing that takes place on October 1st. That's intended to account for the costs that increase over time just through organic inflation that we incurred in terms of chemicals, electricity, the like. It is also recommended that moving forward that we re-evaluate these fees on a much more frequent basis. My recommendation is that no later than five years those be re-evaluated or when there are changes within either the regulatory aspects of what has to be monitored for industrial wastewater If those become more strict or consider a different type of contaminant within them, or as we make improvements to our wastewater treatment plants, which you know we are making significant improvements there, as we achieve efficiencies related to that, If that brings about a need to adjust those rates accordingly, that we also consider those. So that is the presentation for this evening. I would answer all the technical questions on wastewater that you like, but I think I would rather defer those to Mr. Mark Bombard if need be. Thank you.

So I just have one question on that two and a half percent. So will these go up two and a half percent on this October 1st as well?

They will not. They will take effect. They will increase on October 1st of 2027. They do not go into effect until January of 2027. We were intentional with that. knowing that by adding these additional surcharges and adjusting the existing rates there is a cost increase for those that pre-treatment which is certainly justified and appropriate given the cost of treating such industrial wastewater but we wanted to be mindful of when businesses are contemplating that that we're giving them sufficient notice on that and with

operating years being a january one start this in our opinion gives them sufficient time to account for that within their pro forma for the coming year commissioners any other questions comments all right second reading will be on august the 10th so with that we'll move on to new business we've got the approval of task order number three for water resource facility at pollard road city manager

Thank you, Mr. Mayor. I'll present this one and ask Mr. Bombard and representatives of our consulting team to be on standby to answer questions as need be. So on March 6, 2024, the city issued RFQ 2418 for the progressive design build of the wastewater, I'm sorry, of the water resource facility at Pollard Road and wastewater treatment plant number two abandonment. On July 22nd of 2024, the City Commission authorized staff to negotiate a contract with Wharton Smith. Members of Wharton Smith are with us today. The multi-year project involves the phased upgrade of Plant 3, the conveyance of wastewater flows from Plant 2 to Plant 3, the decommissioning of Plant 2, in the construction of a 12 million gallons per day, or MGD, water resource facility with future expansion capabilities up to 24 MGD. Since the award, the city issued two task orders. Task order one was issued on March 10th of 2025 in the amount of $9.9 million, and it established the project foundation through facility planning, infrastructure evaluation, master planning, and alternative analysis to support future design, construction, and funding opportunities. Task order number two was issued in September of 2025 at a total cost of $1.62 million and provided for the pre-construction services for wastewater treatment plant number two improvements, including the design and permitting for a new electrical building and disc filter improvements. It also included related upgrades to support the future conversion of that plant into a reclaimed water booster pump station. Task Order 3, if approved, authorizes Wharton Smith to provide approximately 20 months of pre-construction services to advance the phased expansion of existing Plant 3 into the One Water Campus water resource facility. Wharton Smith and their design consultant, Kimley Horn, will provide project management, design services, scheduling, constructability reviews, value engineering, cost estimating, construction sequencing, early procurement planning for long lead equipment, funding support, and development of future guaranteed maximum price proposals. This task order will advance the project to approximately the 60% design milestone and allow us to establish a guaranteed maximum price proposal for the initial construction phase. Completion of this task order will further refine the project scope, schedule, and cost. Ultimately, the project will support the planned expansion of the existing facility from its current level of 7.5 MGD to an initial treatment capacity of 12.0 MGD with future expansion capabilities up to 24 MGD. The cost associated with Task Order 3 is $27,783,259 and is estimated to take approximately 20 months to complete. Our recommendation is that the city commission approve task order number three for wastewater treatment plant number three, expansion, pre-construction services for the wastewater resource facility at Pollard Road to Wharton Smith Inc. and authorize and or ratify any actions taken or to be taken by the city manager or designee and take any and all actions necessary thereto. I mentioned Wednesday evening, Total build out of plant three is the water resource facility is in the three to four hundred million dollars when it's all said and done and probably closer to that higher end when you factor in the expansion of that site and the additional facilities that come in the rehabbing of what is now a fifty dollar or fifty year old project i came across an article just recently hillsborough county ironically is advancing a one water, water resource facility. I think that they have been reading our meeting minutes and looking at our proposals. Their project is somewhere north of, I want to say, at least 1.2 billion. I believe it may have been closer to 1.8 billion. And when I read through the parameters of their program and what they're looking to do, it's very similar of having to expand for future growth and to mitigate the challenges presented by 50-year-old infrastructure. In my own mind, I was thinking about the challenges of these types of decisions and when we present the budget, some of the big expenses that are set forth in the 27 budget and for the years that follow. And I empathize with the city commission that is seated now because you have to make the decisions on that. But I also recognize that those are decisions that you get to make that are legacy decisions because hopefully no one that sits in those seats for the next 50 years has to do that, just as those that came before you for the past 50 years have not had to do that. In the 1970s when the city took on Wastewater Treatment Plant 3 in partnership with the county, it was about a 25, $26 million project and was the largest project the city had ever undertaken. and those same commissioners at that time were faced with these same challenges. They're big ticket items. This is a $27.7 million first part of that to design everything and get it ready for a GMP. for a much larger project, but I also think it's important to recognize that these are projects that serve a community for at least 50 years and those costs are recovered over that entire time leading up to when the next decision has to be made on that. long after we're all gone. So I just point that out because these are kind of unique times and in the case with Hillsborough County I think further sends a message that you're not the only ones that are doing this. There are a number of agencies that are in the exact same situation with historic legacy water and wastewater treatment facilities that are now at the point of having to make those improvements. I think that the cost that I've recalled recently for the infrastructural needs across this nation for water and wastewater are in excess of $600 billion. And that's because a lot of these systems came on that are present day in use in the 60s and early 70s and 80s. They don't last forever, and certainly communities grow. So that's a little more editorializing than I had hoped to do this evening, but I just wanted to share that insight with you. My staff and the consultants will certainly stand for any questions you may have. Thank you. Commissioners?

Let's ask one question. Do you think that if we had not grown at the rate that we have the last six years, would we still be looking at this? And my thought we would be just because it's an aging system. It's got to be. So I think a lot of the citizens may wonder, well, gosh, it's because you approved all this growth. And that's probably a part of it, which, you know, to counter that, we're not allowed to really hamper that growth due to

legislative decisions from tallahassee but at the end of the day we'd still have to do something with this plant in this system if we really had not grown at all the last six years is that i think you're absolutely correct mr mayor and that the age of facilities the technologies that come online if you think about just consider something you you're familiar with today an automobile and how different that is from the 1974 era. Things evolve and change and there's greater efficiencies to be realized. We did a lot of efforts with Plant 3 in the early 2000s to take that to an advanced wastewater treatment facility that allowed us to get away from the spray fields that we had out there and brought about the Intermodal Logistics Park. The ability to take Plant 2, which is really in a more residential area, and convert that to somewhat of a master lift station and move all of that wastewater to our south to be treated at Plant 3, I think that that's a A VERY RESPONSIBLE AND INNOVATIVE APPROACH TO ACHIEVE ECONOMIES OF SCALE AND EFFICIENCIES. SO YES, I THINK YOU WOULD BE DOING THAT NO MATTER WHAT. I ALSO THINK THAT TAKING THIS FROM A 12 MGD FACILITY, THAT GETTING IT FROM A 7 1 HALF TO A 12 MGD accounts for combining the two, two and three together. It also takes into consideration the growth that we've seen. And the future expansion to a 24 MGD, really the timing of that hinges upon when you approach that need. But being designed to allow for that, I think, is extremely smart planning on behalf of the team.

Commissioners?

What is the life expectancy there?

Mr. Behan, would you mind coming to the podium? I expect it to be no less than a 50-year project. And I say that because you're using materials that are concrete and steels and things that are impacted by the acidities and the effects of the wastewater traveling through there. But I think a 50-year plant is certainly realistic, if not longer. Mr. Behan, would you introduce yourself? Certainly.

Yeah, David Behan. I'm with Wharton Smith. And previously, I was with the City of Lakeland Water Utilities and been in this industry for about 25 years. So, Team Michael is absolutely right. Your city manager hit it on the head. It's probably about a 50-year endeavor, and the concrete is usually what fails in those cases, yes.

I'd like to go on record that he said T. Michael was exactly right. If the record could reflect that.

We have it from someone who's looking for him. How much is this contract worth? Stop. Stop. Mr. Mayor. Yes, sir.

Mr. Mayor, I move approval of task order number three for the water resource facility at Pollock Road.

The motion's been made for approval. We'll close the commission meeting. Opportunity for public comment. Anyone wish to speak to this item? Seeing none, we'll reopen the commission meeting. Commissioners, any other questions or discussion? All those in favor signify by saying aye. Aye. Opposed, like, sign. Motion carries. All right. Establish a proposed fiscal year 26-27 millage rate. Probably city manager wants to take this one.

Thank you, sir. Mayor and commissioners, each year the city is required to calculate and set an ad valorem millage rate for Chapter 200 of Florida statutes. This is known as the Truth in Millage Act or TRIM Act, and it informs taxpayers of the taxes levied and the amount of tax liability owed to each taxing authority. Per TRIM, the city is required to notify the county property appraiser of the city's proposed millage rate for the ensuing year and provide the date, time, and location of the first public hearing regarding the budget and millage rate. Based upon the certification of taxable value provided to the city by the property appraiser's office, Winter Haven's 2026 gross taxable value is $5,608,674,230. This represents an increase of 4.97% over the prior year gross taxable value. The 26-27 fiscal year budget, as proposed, was constructed using the current millage rate of 5.900 mills. Sorry, 6.5900 mills. At a 96.50% collection rate, along with city funding of the community redevelopment areas, the anticipated ad valorem revenue is $32,753,796. This millage rate provides a balanced budget that is fiscally responsible and aligns with the City's strategic pillars. It maintains adequate reserves to address unforeseen events and balances service demands with available resources without placing an undue burden on taxpayers. The City must notify the property appraiser of the current year's calculated rollback rate. the proposed millage rate and the date, time, and place of the city's first public hearing by Tuesday, August 4th, which is a week from tomorrow. The city is also required to complete the tax increment adjustment worksheet for the Winter Haven downtown and Florence Villa CRAs and maximum millage levy calculation preliminary disclosure. Staff recommends sending back those completed forms with the required information by this Friday, July 31st. The current calculated rollback rate millage rate is 6.5567. The millage rate, once it's set, can be reduced at either public hearing but cannot be increased. So the tentative millage rate is 6.5900. Any millage that exceeds the rollback rate must be advertised as a tax increase, as we've shared with you each year. The total proposed budget anticipates expenditures of $371,845,623. That's an increase of $119,915,550 over the prior year, primarily due to one-time capital investments in infrastructure, as we just discussed. This budget reflects a projected general fund available balance of $28,156,751, exceeding the fund balance reserve policy target of 30% by approximately $1.2 million. I'm not going to go through the entire budget proposal for you this evening, as we did Wednesday night, unless you really, really want to see it again. But I will highlight a few things. As I mentioned, the budget is approximately $372 million as proposed for fiscal year 27, which includes $177.5 million in total capital expenditures tied to infrastructure and major asset investments. The vast majority of that is within your water department. It is a balanced budget using the current millage of 6.59 mills. Our estimated ad valorem revenues increased by about $1.5 million in the general fund from what they were a year ago to bring it to a total of $32.7 million. We do continue to fund our investment in affordable housing through a $250,000 appropriation from the General Fund into the Affordable Housing Trust Fund. We continue to fund our STEP program for our employees. and we've included a cost of living adjustment of 3% to take effect on October 1st. Our budget is proposed with 776 total employees, and you can see on the screen the distribution between full-time and part-time. There are only six new positions to be added next year per the request. Only one of those is within the general fund, and it is funded at mid-year and hinges upon the outcome of Amendment 3 in November. Next slide, please. We did get some updated millage rates from other jurisdictions, so this slide has been updated since you saw it just this past Wednesday. At this time, the only one that we are aware of that is showing a millage increase is the town of Lake Hamilton, going from 7.99 to 8.50. Even with that, Winter Haven remains the eighth lowest millage rate within the area, and as I mentioned, Of those that you see, there are five jurisdictions that in addition to a millage rate also have a fire assessment fee. City Commission has inquired or expressed interest in considering a fire assessment fee as we weigh the uncertainties associated with Amendment 3 and property tax reform. I hope to have that presented to you at one of your two meetings in the month of August. NEXT SLIDE, PLEASE. WHEN YOU CONSIDER LAST YEAR'S BUDGET TO THIS YEAR'S BUDGET, 25, 26, OR CURRENT YEAR BUDGET, I SHOULD SAY, IS ABOUT 252 MILLION. FOR FISCAL YEAR 27, IT'S ABOUT 372 MILLION. First thing we do in determining how much we need to appropriate, we back out the intra-fund transfers so that we don't double count expenses as they show up as an expense when they are transferred and an expense again when they are actually expended by the receiving fund. We end up with a total amount to be appropriated next year of $329 million. The one time significant expenditures in capital, you can see $110 million is within the utility fund alone. That is a business operation and that is supported by the fees that we charge for water and wastewater service. The downtown parking garage is included, the advancement of a pickleball facility, Improvements at Sertoma Park on the football facilities. Improvements to roofing at Normale Hall or the Florida Citrus Building as well as the Ritz Theater. Hardening and improvements to fire stations one, two, and four. The replacement of a fire truck. Our portion of that, after the insurance payout, this is a truck that we did not damage. This was totaled out when another vehicle struck our fire truck. That is going to cost us an additional $720,000. And then other various capital that we have at about $50.7 million. If you back all that out, you can see at the bottom the total amount of personal, operating, and non-capital expenditures rises from $138.6 million to $151.5 million. That's an increase year over year amongst all funds of about 9.3%. Next slide. All of the funds that we operate with are reflected here, and I believe we gave you all a copy, a full printed copy of this presentation Wednesday evening, but this shows you for each fund that we operate, how those dollars are distributed, and post this evening's meeting, if you have any further questions about the projects or the operations within those, or if you have those this evening, I'll be happy to answer them. Next slide. I mentioned many times during our briefings and also Wednesday evening the comment that we often receive in local government of why don't you operate more as a business. And I'm always happy to point out that we do operate as a business where a business operation makes sense. Those are called proprietary funds. That's the water fund, solid waste, dark fiber, storm water, and Willowbrook operations. Those are funds that as they operate, the revenues they receive are intended to sufficiently offset the expenditures that they make for that operation. In Winter Haven's case, business operations account for over 58% of our total budget. The general fund, as you can see, is $85.4 million for next year. And with all the discussion on property tax, that is where ad valorem property tax revenues go is into the general fund. Next slide. IF WE LOOK AT HOW WE EXPEND MONEY, THIS IS A YEAR-TO-YEAR COMPARISON OF THE CURRENT FISCAL YEAR TO NEXT YEAR'S PROPOSED. AND I'LL DRAW YOUR ATTENTION PRIMARILY TO THE GRAPH. THE YELLOW OR GOLD COLORS ARE NEXT YEAR'S EXPENDITURES. AND YOU CAN SEE IN CAPITAL, WE ARE MAKING SIGNIFICANT INFRASTRUCTURAL INVESTMENTS FOR OUR COMMUNITY THAT IN MANY CASES WILL BE 50-YEAR INVESTMENTS IF NOT LONGER, PREDOMINANTLY IN THE WATER OPERATIONS. have very minor changes. In fact, personnel services increase across all funds by less than 5% year over year. Next slide. I mentioned ad valorem is revenue that goes into your general fund, and you can see by the pie chart that ad valorem revenue represents $33.1 million, or 38.79% of the total revenues that come into the general fund. going back to the discussion on property tax reform in amendment three that will go before the voters in november of this year if that were to pass if it's full implementation which would be two years out our estimation based upon numbers provided by property appraiser neil comey is that the city of winter haven would lose 10.4 million dollars the more recent report by the florida Revenue estimating conference suggests that number being north of $13 million. So if you drop, if it did come to that, that number, depending upon what growth looks like, if it happened this particular year, we would go from a $33 million revenue in ad valorem to somewhere between $22 and $20 million would be what the new number would look like. Next slide. And then this is to explain a little further in that general fund how you use those dollars. So you can see once you take out non-departmental expenses, debt, support of other funds, the grant and aid programs, and look specifically at departments, police is just shy of $20 million, fire slightly over $18 million, parks and recreation about $14.5 million, and so on. Again, this is just for comparison purposes, but if you think about when it comes to cutting, what could be the case if you didn't have a revenue replacement strategy, and the Commission has requested a study on fire fees as a revenue replacement approach to be considered, considered I say at this time, but if you did not do that and had to cut, $10.4 million and not touch your police, fire, or safe neighborhoods operation, which are the three legs of the public safety stool, that shows you where you'd have to pull those from. Furthermore, when we talk about ad valorem in comparison to operational costs, Winter Haven's public safety components, have an expense proposed for next year of $38.8 million. Ad valorem revenues, I'll remind you, bring in $33.1 million. That's a difference of about $5.7 million between what ad valorem brings in and what it actually costs just to do public safety. Next slide, please. I mentioned we did do a cost of living proposal within this budget that considers not only inflation, which is presently for the month of June, year over year, the CPI is about 3.53%. I expect that to go up for July. simply because in June with the conflict in Iran, we had gotten to a point where we were at a ceasefire and negotiations were going on in public sentiment in the how it affects inflation and spending improved. However, given more recent events in the latter part of July, I would expect that to have more of a negative effect than raising that CPI for the month present. We won't know that until mid-August. So we look at that. We certainly want to retain as many of our exceptional employees as we can and stay competitive as we do have people that retire or move on that we can recruit new people. But we also have to take into account what is the long-term sustainability And what is our capacity to continue providing the resources associated with employee pay going forward if you have a drop in ad valorem revenues? So decisions you make today, can you continue to provide for that should that amendment go through? We feel that realistically a 3% adjustment does take into account the inflation that we're talking about, particularly when it's combined with the 2.5% step program that we have in play. And this is for all of our non-collective bargaining unit employees. We are still in negotiations with our police union and our fire union, so those numbers remain to be seen. But what we have factored in as a placeholder across the board at present time is at 3%. Next slide. I think this is the last one I have for you this evening. And this is your rainy day fund. This is what you have in savings. This shows that at the end of fiscal year 26, I'm sorry, end of fiscal year 27, we expect to have a fund balance that represents 33%. of the general fund. Our target goal is established by the city commission is 30%. Anything above that 30% we identify as being able to bring back to you for your consideration assignment or appropriation of those funds to handle one-time capital expenses. You can see that on the right-hand text there, that difference between 33% and the required 30%, should say targeted 30%, is $2.5 million. We're recommending that $1.5 million of that go towards the Sertoma Park football facility improvements, and the balance be left alone until we get through Amendment 3. at the ballot and also until we get through our auditing process in the calendar year 27 so we know better where we stand and can have a more, I think, appropriate discussion on what to do with those funds, if anything. And that is just a quick snapshot of the budget. It is, in my opinion, a conservative budget. When we look at the general fund, as I've calculated, if you back out the capital, the one-time expenses, and look at personnel and operations just within your general fund, which is where our citizens and our property owners' taxpayer dollars go, their actual property taxes, The difference year over year for personnel and operation is just over 4%. And to me, I can confidently say that that is a conservative approach to budgeting. So with that, I'll gladly stand for any questions. The item before you this evening for your consideration is to establish your tentative millage rate, which we've recommended you set at 6.5900 mills, and then to also establish your first public hearing to be Tuesday, September 15th, 2026, 6 p.m., in the John Fuller Auditorium at City Hall, located at 451 3rd Street NW, Winter Haven, Florida. Thank you.

Commissioner Davis?

So this is my first rodeo. I've got a few questions 6.59 that is above the rollback. Does that mean we are going to be advertising a tax increase?

Okay, that is correct. And we've we've We've done that and I'm not saying this for to give any precedent to it or sure imply such the city is not adopted the rollback rate at any point. In fact, I think the only time that we were probably below the rollback rate would have been during the Great Recession, when we would have actually had to roll up to meet the prior year's revenues. This is the closest we've ever been to the rollback that I can recall, though, in the difference between the 6.55 and the 6.59 bills.

Do we have numbers on what that difference is?

We do, and I sent that out via email to the commission this afternoon. It is basically the equivalence of what the new ad valorem revenue is, which is about $1.55 million. Okay.

I think that's important because that's part of our messaging when we speak to folks. I mean, obviously, as the cost of living goes up for everybody else, it goes up for our costs of running the city. But I am very sensitive to the fact that property owners, while they may be seeing the increase in their equity, their cost of living is going up as well, and they're not necessarily seeing an increase in their budget. So I'm very sensitive to that, and that's something I want to keep in mind. I think that's the only question I have now. I'll save comments for later.

Any other questions or comments?

Okay. I've got one, maybe two, maybe three.

We'll see. You're the mayor. You can have as many as you want. So the one-time expenditure items, those, even though they're one, well, I guess obviously, let me just ask the question. So like, the Pickleball Courts or Sertoma Football or Normeo Roof or Ritz Theater, are those coming out of funds that are already on board or is the millage rate going into a portion to cover those?

So when we look at, and Mr. Reeder, feel free to weigh in if I misstate anything here, please. But as I mentioned, Sertoma Park, that comes off of our recommendation is that we use some of the available funds within your fund balance for that. Pickleball courts are considered an expanded recreational component, something we don't have at present time, so we are able to use Parks and Recreation impact fees to go towards that. Those are fees that are paid when new homes are constructed in the area, as you're well aware. Other capital expenses are budgeted based upon what's available within the general fund. So in the case of police vehicles and some of our fire equipment, we're able to use some impact fees. Legislatively we're allowed to do that, and we do that wherever we can. If we can use impact fees, we try and move that. You also have grant dollars that come in for some of those one-time expenses. And the rest of it is a balance between what we receive and the ad valorem revenues that come in. It could be off of franchise fees. It could be off of the utility surcharges, communication services taxes, parks and recreation fees. It's not like those are peeled out specifically for... item A, B, or C. It's only when it's, if it's grant money that can go specific towards a project that we've applied for, then yes, it has to be used there. If we can fund a capital project with impact fees, we always want to do that. And the rest of it is you've got basically a singular bucket that you're working from.

And so, so what I'm kind of getting at, and this is another, um, So let's just pick on pickleball courts for a second. So if we were to say no to the pickleball courts, not suggesting that we are pickleballers, don't call me, just using that as an example, the pickleball courts, if we said no to that, that wouldn't be like, okay, well, there's a million five we just found. We can take that out of the millage rate.

No, because that's coming from an impact fee. So it's specific. You'd have that still within your impact fees to use towards other expansion projects when they come to fruition.

Okay. Mr. Labby, I've got a question for you.

What you were trying to ask, though, is what part of the Outlaw Room is basically being budgeted as it relates to a particular project? I think the Sotoma Park project would fit.

So that's coming from your general fund surplus fund balance.

So that particular one, if we said no to Sertoma, that could impact the millage rate. Again, not suggesting that we are. I'm just educating myself.

Well, I would say it's not a recurring revenue. And that's where I would advise you to be cautious because if you're going to take something that is for a capital project and put it towards something that is a recurring expense, you don't have those dollars in future years. That's why we appropriate them towards one-time expenses. They're dollars you have that, particularly in that case of general fund, it's not necessarily going to replenish itself or come back again.

Maybe a better example is grant-made. We said no grant and aid. That money could directly relate to our military.

That is a recurring expense that you have. I think this year your grant and aid is $380,000.

Okay. Plus other things that we contribute towards.

Plus what you give to EDC, Chamber of Commerce, Main Street, et cetera.

Okay. So, Mr. Ladley, I have a question for you, and hopefully this is not a Bruce Lyons moment for you. What's coming into Macy's?

It's an indoor pickleball facility. It will have six pickleball courts and it will be accompanied with what I would call like food hall type uses. There will be food and beverage retailers in there as well as other retailers. There are I believe it's 10 or 11 individual retail spaces that are being developed

along the front of that building so you'll have a mix of retail food and beverage and recreation okay so just and and i'm fine with moving forward you know tonight at the 6.59 and you know probably going all the way with it but just i'm just how i'm just asking these questions to so that we can ponder thought as we move forward through the budget process of what else is going on And, you know, I think even though we, I'm sorry, this is probably going to start the pickleball columns, and that's fine. But I think we really need to think about, you know, is that the right move in the event, let's say, voters in November vote, you know, to reduce millage rate? Is a pickleball facility the right thing to add if private,

the private sector is creating that same facility you're spot on mr mayor and i would say that when we look at capital projects you've got what did i say a hundred and seventy million dollars plus of capital projects those projects don't advance necessarily october first you have time to make strategic decisions on those particularly in light of and I'm not trying to create a sense of fear, but there are communities around this state that in anticipation of Amendment 3, should it pass, of selling off park lands and closing down recreation centers and reducing libraries and those things. I'm not saying that we are. That's certainly an option that any commission could take on. But I think that if it's a matter of do we build new or keep an existing facility that we've already invested millions of dollars into, keep it up and running, I think that's a pretty easy decision to make.

So I think just as we continue through this budget season and beyond, I think those are the things that we need to really continuously think about and consider what direction we want to go forward. And we don't have any crystal balls. I think the last polling that I saw, you know, would indicate that it is starting to scale back towards the probability of it passing. But, you know, there's been presidential polls that said absolutely no way this person's gonna win and they win in a landslide. So I don't trust polls completely. It's at the will of the voter and who shows up

It's kind of like sports, Mr. Mayor.

You got it. So I probably would not place a wager on whether it would pass or not, but it's things that we're going to have to take into consideration and in the direction that we're moving forward and spending public funds, which we do very conservatively now, I might add. But I think when someone picks up this budget, they're probably going to pick out, why are we putting $1.5 million in pickleball courts? Well, That's why I wanted to have this discussion as to, well, it's not impacting your impact fee, and it's not set in stone that we're going to move forward with this. So lots of discussions to be had.

Let me just say, I don't know that I've ever articulated this as such to any commission, but Your budget is a financial plan that is intended via numbers to convey the priorities of the elected body who represent the citizens. It is a plan. And you adopt a budget. And I think that our approach to budgeting is such that if you get to November, and certainly an Amendment 3 does not impact a budget, fiscal year twenty seven operation it would not impact us until fiscal year twenty eight but when we look at can you add positions can you continue to fund uh... cost of living adjustments for the operation of facilities if the dollars are going to be there to do that i would advise that you look at okay what we what we not move forward with that we had hoped we would be able to do I think it's the same thing that any of us in our personal lives is. We want to do things, take a vacation, buy a vehicle, renovate a house, whatever it may be, based upon the income that we have, and that's our plan. But should that occupation that we have cease to be, we don't do those things. And I think the governments are in the exact same boat, that we'll have to make those decisions as we know more. We're kind of in a bit of limbo, but you have a plan for how to advance things in fiscal year 27.

All right. Any other questions or discussion, or is there a motion?

I just – my take on – setting the Avalon rate is we can always lower it, but we can't raise it. And I'm not even suggesting that we would even consider lowering it. My take is that whether we have tax reform or not, I think when I look at a budget and look at what we're proposing to do for the next fiscal year, I'm looking at it from the standpoint of the revenues that we need to provide it. And if I feel comfortable with that, then I'll I'm comfortable, but if I don't, then I won't vote for it. So that being said, I'd like to move that we establish the tentative millage rate at 6.5900 mills and that we have our first public hearing on September the 15th and a subsequent, our final hearing on September the 28th.

Okay, motion's been made. We'll close the commission meeting, open the public comment portion. Anyone wish to speak to this item? Seeing none, we'll close the public comment, reopen the city commission meeting. Any other questions or discussions? Commissioner Davis?

Yes, I just want to add, so I'm I'm going to go along with this for now. I don't have any plans. I don't want to reduce our revenue without having a plan of where I want to see the spending reduced. But I do think that should Amendment 3 not pass in November, I would like to put a good faith effort out there to see if we can maybe go, you know, cut the budget somewhere and come back on the rollback just to show our voters that we do hear them. I understand that this is a part of its talking point, but part of it's also concerned because it's year after year after year. And I would actually, you know, once we get our fire assessment study back, assuming Amendment 3 does not pass, I'd like to see if we were to implement an assessment and then roll the millage back even further to kind of balance it out a little bit so that way there is more of a, you know, pay for use as opposed to just putting on property. So that's kind of where I'm headed. I am fine with going forward with it now with the idea that we could always reduce it later. I do not want to cripple us going in not knowing what's going to happen in November. Thank you, sir.

And I'll just add, I've said similar items, and I think that, you know, I think it's going to be real interesting. I kind of hope November doesn't pass so that we can kind of come back and, you know, look at some different ways and different things, and it's going to be interesting. think a very positive thing for the city going forward and the citizens and and proof that you know local municipalities and commissions can can uh can balance things out and and make it favorable for all and still provide public safety and public services so

Mr. Mayor, can I just add a comment before you all vote on this? And it kind of goes along those same lines. I think you as a commissioner are doing a phenomenal job thinking strategically and fiscally responsibly. Amendment 3 in November is, as we've said all along, is a very rushed approach. What's intended to achieve some level of a haircut becomes a decapitation for many governments who don't have the opportunities for replacement revenue. Keep in mind that it is, I'd say, the first major issue with property tax reform that's going to come before cities, counties, and our constituents. In 2027, the state legislature will impanel the Taxation and Budget Reform Commission, which happens every 20 years. And that is a much more deliberative and research-based look into property tax by not elected officials, but by an appointed panel, appointed by the governor at the time, the Speaker of the House, and the President of the Senate. And they will spend a considerable amount of time further researching property tax reform that would, if there's an outcome from that, would go before the constituents, the voters, in November of 2028, as I understand it. will go through a process this november either i think kind of nullify the effectiveness of the t b r c or if it were to pass or if it doesn't pass i think gives the t b r c a good starting point for their work so i only say that in that if you do consider moving forward with a fire fee that the issue of property tax reform is not over and done with November of 26. There's a whole other chapter to be written yet, and so I just advise all commissions, this and any other I come across, to be mindful of that, that as you make decisions, it may not be the same playing field in two years again. So just throw that out.

yeah my concern is that you know a lot of the talk i think that i think will go into that committee is it'll be a more targeted approach so potentially to you know impact the seniors or impact the working class which many in tallahassee have defined as teachers nurses and and while they certainly are are qualifiable and deserving of those everyone is deserving you know to to live a life of affordability and so that's that's where i worry about come under that commission is being a more select and depending upon who's in the governor's mansion but you know it to me you it's got to benefit all it can't benefit a selected target group and so i hope that that's the the the direction that starts to unfold. But anyways, motion's been made. All those in favor signify by saying aye. Aye. Opposed, like, sign. Motion carries.

Thank you very much.

Okay, liaison reports. We'll start with Commissioner Davis. He looks like he's ready.

Yeah, sure. I'll be quick. We've been here for quite a while. So kind of in the same vein of what we were just discussing, I want to thank the city manager for once again laying out the budget in a way that I think is accessible, it's thorough, it's very detailed, and it shows that we are not using people's homes as an ATM for every wasteful spending scheme imaginable, which is something that we have been alleged of doing this past week. Um, you know, and I also, I, I, I'm, I want to echo what our mayor has said. I, you, you know, the voters have chosen us to make these hard decisions. They've chosen us to listen to the property owners, the business owners, every member of our community to hear how these are, these choices are impacting them, what their burdens are. And that is what we're here to do. And we just want the opportunity to make you proud. We want the opportunity to hear you and to implement what you are telling us you want to see happen. So that's why we keep bringing this up. That's why we keep speaking out against these awful tactics, these talking points that are just not accurate and that really portray us in a bad way. I don't think it's fair. I don't think we deserve that. I don't think our staff deserves that. So I just wanted to comment on that. As far as my activities, it's been kind of a light week. I really the only only couple things that I got to do I attended the leadership Winter Haven luncheon the graduation with the chamber and City Manager I want to thank you again for allowing our staff to participate in that we had quite a good representation from the city there and I'm very proud of our staff doing that I want to encourage anyone who's looking into doing this I think that the deadlines already passed for this year but I think it was July 15th is what I saw in the email. So next year for sure or any other subsequent year. It took me a few years of trying to get a year where I could guarantee that I could do it, but it was a wonderful experience. And also I attended the Leadership Winter Haven alumni event on Thursday. That was a lot of fun as well. So can't speak highly enough of that program. I think quite a few of us sitting up here have all done that program. So, you know, give it a try. We're two weeks away from school starting in my day job. That's all we're working on right now is getting everybody back to school, getting our principals and our schools set up. So I want to wish all the families and children out there a happy two weeks left of summer vacation. It's coming to an end, but I think we have a back-to-school event we're doing with our police department. Is that this Saturday? I want to give a plug for that. I hope to see a bunch of people out there. I plan to be there, and that's all I got.

Mr. Bertson?

I want to have a few things. We had our Front Haven EDC board meeting and welcomed our new executive director. Had a pension board meeting and the pension fund did pretty well this past fiscal year. And attended von Macker-Sand's retirement party and attended a 100th birthday celebration, which was the highlight of my last two weeks.

That's it.

Commissioner Dollison.

I've been out of pocket for a few days. I had to go out of state for some personal matters, but I was able to attend the birthday celebration of Miss Angela Keaton Davis and It was a grand event, and she was all smiles and said, I look forward to seeing you all next year. Yes. So that was certainly encouraging, but I, too, certainly echo the same sentiments, too, that responsible government, and I think, you know, try not to take it so personal. I think that it is business and it is matters that have to be given serious, serious consideration. I think we're doing that. I think you're doing a great job and I want to commend staff for the work that you do. In many ways I think that because of the great efforts you all do and working out the finer details that we're able to see the big picture and be able to assist and help in any way we can and move the city in a positive direction. So that's all I have for tonight. Just glad to be back. Thank you. Mayor Pro Tem Mercer?

Yes, I agree with Commissioner Dollison. They make it really easy for us, and we're all concerned about, I guess, some of the, the funding in the future not even not only here but on a personal level some you know we never like to hear that um also wanted to say i attended the pension board for both police and fire and they're performing very well so i'll leave you on a good note tonight uh how

not repeat everything that was said that i attended so i'm upset enough tonight but uh i'll move forward with the city attorney report nothing this evening thank you city manager

A few things, if I may. Mr. Merritt had communicated with the commission earlier today. My intent is to be away from the office later this week on Thursday, Friday, and then again on Monday of next week during my absence. Deputy City Manager Carnevale, I didn't mean to demote you there, sir. Will be available to handle emergency matters as will assistant city manager Byrd should they be the case? also want to Make note and chief Monroe if you could just give me a head nod, I believe it's August 4th is the kickoff of national night out activities for the city of Winter Haven you'll see more information going out on this if it if you haven't already and National Night Out is a nationwide effort to engage citizens with law enforcement to create positive outcomes and foster healthy relationships. The City of Winter Haven has done this for a number of years. and we identified in our strategic plan the desire to expand those. We do this in a number of different areas of the community, but on that evening of Tuesday, August 4th, we will be doing kind of our kickoff for the things that will happen throughout August, September, and October with an event in Central Park where the chief and deputy chief and their teams will bring out a number of our resources in law enforcement, in public safety, for the community to see and interact with and, again, try and foster strong, cooperative, collaborative relations with all of our citizens. So I believe that's all I have for this evening. Deputy City Manager?

Nothing this evening, sir. Thank you.

City Clerk?

Nothing this evening.

I do have one more thing. We have a very special birthday tomorrow.

Yes, we do.

Our city manager is turning 70.

I'd like to announce my retirement this evening.

So I'll extend a happiest birthday to him. I hope you have an awesome birthday and an awesome time off. Take a break. You've earned it. You deserve it. Happy birthday. With that, we'll adjourn.