##VIDEO ID:YRWO_ADd4qc## good evening everyone today is September 3rd 2024 it is Tuesday 5:30 p.m. we are at the city hall council chambers 100 PK Avenue in Cape canaval Florida for this Cape Canaveral city council special meeting I do call this meeting to order with that council member Willis would you please lead us in the pledge flag of the United States of America and to theic for which it stands one nation under God indivisible with liberty and justice for all thank you Council City staff and public who are joining us today we appreciate everyone taking the time to be here and those listening online if you do intend to speak we ask that you please fill out a a public comment card and uh those you online will instruct in a moment city clerk would you please call the role council member Davis here council member Jackson here mayor protim Kellum here mayor Morrison here council member Willis here everyone's here thank you Council approval of agenda as written or with amendments we have two items tonight uh we have obviously public participation public hearing with the two items a resolution and ordinance and then we would or scheduled to adjourn make a motion to approve as written awesome any further discussion got a motion by council member Willis as second by council member Davis seeing none city clerk council member Davis four council member Jackson four mayor protim Callum for mayor Morrison four council member wellis four okay public participation portion of the meeting for those of you who are listening online we'll get to you in a moment uh but we do ask that you please raise your hand I do not have any cards however it is a public hearing item if anyone would intend to speak please come forward or raise your hand if you filled out a card and we did not get you seeing none those of you online if anyone would like to speak we ask that you please raise your hand seeing No Hands raised we'll go ahead and close public participation portion of the meeting now for the actual public hearing portion of the meeting the first item is resolution number 20249 Mr your city manager or City attorney I don't know if he City attorney needs to read this one I think the ordinance he will but the resolution resolution okay this uh this is adopting a tentative millage rate for the levy of abdor taxes for fiscal for fiscal year 2024 2025 on all taxable property located within the City of Cape canaval Bard County Florida providing for an effective date city manager any uh yes sir bead comments thank you yes sir so where we last left off with the uh the millit rate was a middle of the road rate of 3.49 41 combined so that's the combining the general government millage of 3.41 519 and library of 0422 Mills that's how we get there a lot of discussion is held in my budget Workshop since then about uh what we would want to cut if we were to explore going lower than that so uh CRA board me and they moved some things back and I'll ask Joey to talk about those just kind of recap where we are and the your uh latest version of your budget was distributed last week um with the changes that we are aware that Council identified and that the CRA board identified as expenses that could be cut and um so before I turn it over to Joey I just want to mention that he's prepared to also talk about different scenarios um that the council could consider in other words what would roll back look like how much would have to come out if we went below roll back how much he even want to say what if we went halfway above or halfway below he's ready to talk about all those options and how much would have to be cut so it's all on the table today to talk about where we want this budget to go is up to this council tonight and U if it's okay mayor I'd like for Joey to just kind of give an overview of the changes of the budget b based on the input of the councilman si repard yes please and I assume that will include some of the um documents we had in front of us here yes thank you Mr city manager Joey floor is yours so I'll start off um the general fund contingency is currently at um 810,000 and the CRA contingency is at 418,000 um those are those are high numbers and those numbers are so high because of what the changes we've made at the last CRA meeting um moving what used to be in the general fund um the oaklane project into the CRA so essentially um loosening up 550,000 of funds in the general fund so that's why it went up from 300,000 to um 850 and then with um an increase in an expense an operating expense within the city took it down 40,000 so that's how we end at that 810,000 of contingency in the general fund um and in the CRA um moving out the Civic Hub which was a a million doll project 1,50,000 uh opened up a lot of funds and moving in the Oak Lane project used up 550,000 of that 1,50 um add we added the Nancy Hansen project for um 100,000 um of note that was added in this budget as 100,000 um not 115 which it originally was in the CRA meeting because the um the traffic art installation project was was $155,000 but was Grant funded by 10,000 so that means the city we only had to pay 5,000 so putting that cost is an extra is really loosening up 5,000 instead of 15,000 so Todd and I talked and um he said to have it in at 100,000 instead of the 115,000 so that explains that why it's 100,000 and not 115,000 um so I think that's a overview of um the contingency numbers um you should have in front of you a um a piece of paper that has the future mill rate options on it um us and finance have prepared this um it shows three highlighted um options where we currently are which in the big picture is the middle of the road and then you have the roll back and then you have below that the 3.2 potential general fund millage um um in the middle of the page kind of the second the second part from the top it shows you how much uh Revenue you will lose if you lower taxes and then the the part most towards the bottom shows the effect on the contingency so as I said we're currently at 100 or the general fund has 810,000 the CRA has 418,000 and then we show the effects if you go to roll back or 3.2 how much money you will have left in contingency um does anybody have any questions Joey thank you Council any questions at this time council member Jackson just a quick question Joey on the future contingency with those numbers how what was calculated in that those figures because it's roughly 500,000 if we went all the way back to 3.2 right so can you let me know explain that for me yeah like how we calculated those numbers yeah we have a um an Excel sheet with an equation that lets us know how much income we will get how much revenue we will get at what millage it multiplies the millage rate versus or by the um taxable value in the city and so we just input the um 3.2 versus 3.4 or whatever 3 something number and it will show us and tell us the revenue we will get so that's how these numbers are calculated so really it's just sorry about that really it's just looking at the millage rate the decrease in that as far as what would end up going into our con yeah I believe so if you're saying um this sheet is showing if we lower taxes how that will affect the contingency does that make sense yes thank you mhm Mr Mayor yes council member Willis um Joey on the future contingency that is the actual funds that would be in contingency not a decrease of that correct correct okay yes the future contingency will be how much contingency we have in the future at um as a balance as a balance correct as opposed to the middle one which is decreas in R those are the numbers that would have to come [Music] out does this take into account any contingency we have now or is this an addition to contingency we have now this does take into account um so I'll go over kind of the middle part it that the middle part shows the decrease in revenues so the current proposed the top highlighted one it shows zeros because we're currently there so if we stay there we don't lose anything um and then the next highlighted one in the decrease in revenues is roll back and it shows we will lose $259,000 in the general fund if we go to roll back um and then the third lowest part takes into account the current contingency which is 810,000 and subtracts how much we will lose um if we go to rollback and it shows that future balance I guess that's what I don't understand is if we've got 810 right now 145 and we go to 3.2 MH I don't understand if we're adding to are we if we're adding to the contingency at all why would it reduce it I guess is question I understand okay so the middle part is saying how much money we will lose and the bottom part um shows how much money we will have in the future so so specifically talking about the 3.2 option the future contingency the part most of the bottom says you will only have $314,000 in contingency if you go to 3.2 you know what I think I just got it let me ask one question to clarify that I did okay what is the balance of the contingency today 810 you mean that will be I'm sorry to clarify that will be the balance on October 1st if the budget is approved at middle of the road rate correct So when you say today I think it October 1st well right no I mean right now is there money in contingency and what is that balance I if I understand I believe you're asking currently at the proposed millage rate the current proposed contingency we would have would be $810,000 in the general fund I think um so we passed the budget last year and there was an amount in last year's budget that had a contingency if we know that amount how much of that that we budgeted for today year-to-date actuals ideally up to August I think the latest we've seen are June year to date and so what is what was the budget for the contingency and what do we have left balance on hand yeah so for this current fiscal year we budgeted uh 229,000 in contingency um and I don't have access to the current balance right now but off the top of my head I want to say our current balance of contingency for this fiscal year would be about in the high 100,000s so close to 200,000 left over so we've spent roughly 30 to 40,000 off the top of your head understood MH okay so there is a balance and so does the balance the balance would be in addition to the 810 if we went with the current proposal ah uh that is incorrect we do not add we do not roll it over so this number would stay the same this I can will the 200,000 that is left over does that if the if the 800,000 at the rate today in does that include the 200,000 or are we saying we're going to spend spend that or we might use it it assumes that we spend the remaining 200,000 correct correct what goes unused this year will not be added on top of next year's potential contingency balance thank you very much and I just want to uh say thank you for this uh future milit rate option sheet this is really helpful and I think that the the revenue balances up at the top as you were saying earlier kind of go alongside with those decreases and the contingency is just a a great indicator for some some extra funds if you had to pull one line item out to say you know what's but just want to say thank you for uh correlating the different options with the how it impacts the the funds and I don't know I know you paus to ask for questions Council we're still going back and forth council member Willis no I think uh Joey answered that it would be interesting to know exactly where does remaining contingency go question too so what what you have left over from this year what happens to it um off the top of my head um I know we find out those numbers in the annual audit we do an actual audit of how much we spent and made over a year um so that that shows us the true number of contingency in case some projects went over some went under um so that kind of touches your question um in the annual audit we find out the actual Revenue minus expense um so those those funds actually get reallocated to projects that go over or possibly under correct okay yes so it it's basically of your accounting maneuver to disseminate those leftover funds correct yes all funds will potentially be used and obviously we want some um um in case there's a um an accident or um catastrophe Council are there any more questions at this time enjoy I don't know if there was more that you wanted to work through you just paused for a question is there anything no nothing that I think we should work through um I think I give a summary um if you would want me to talk more about the budget I could I think we might have some questions but just wanted to make sure you got through and it was this sheet and is that the only sheet we had okay just making sure thank you very much council member Willis so just just for clarification our contingency funds are going to keep us from uh overages we're accounting for overages so it's it's a a stop gap for inflationary increases and any uh additional cost and materials and Etc so uh the mere fact that we're looking at a large number doesn't mean that's going to stay there it doesn't mean that it is money that we can just go and uh find new things to spend it on so just wanted to clarify that thank you yes council member Jackson Joey I'm really throwing you under the bus here I don't mean to but I'm curious because I like analytics and patterns do we know how much we had in our contingency fund the year prior to 2024 for that annual budget you may not know that but patterns make a difference to me because if we um went in and we had 229 last year and we used 30 that's a kind of you know we didn't really we were way over budgeted on that we over budgeted for that piece of it so I'm wondering what the patterns are like and you may not know that right now yeah that's a good question and I don't know off the top of my head um but just good accounting financial planning practice is to have a sum of money in case something unforeseen happens like worst case scenario Cape Canaveral hurricane um so always we always have that in the back of our head okay and if we had a hurricane because that's real real world there what other funds do we have that we draw from that we would have to draw from besides just the contingency um what is it um the other funds that we would have would we would reach out to FMA oh sorry thank you I didn't mean to throw y'all under the bus but I'm I'm trying to understand push this something um the other funds we would have would we would reach out to FEMA at that time but FEMA money does not come in right away so we have to cover certain things we have to cover payroll we have to cover if the air conditioner goes out if you know a lot any damages that are done we have to cover that first then we reach out to FEMA and then FEMA comes in and reimburses and it's not as easy as everyone thinks we go through a lot of red tape to get money back we're still waiting for money money I think for is it Ian I think yeah we're still waiting for money from Ian and they just announced this year that they're already out of funds yeah so that's why I'm trying to understand how this is all working together to make sure we're not you know that we're covered so so no other funds in the city that we would have storm water or anything else nothing we can't really allocate for we can't out to another account to to cover General funds okay we have to make sure we have enough money in general funds to cover those emergencies okay thank you you're welcome luckily the weather's nice yeah and I think um yeah I think Irma was hitting when we were waiting on Matthew money yeah yeah and that sort of sank in the reality of that reimbursement really that from the f fedal FEMA fund mayor yes want to add to council member Jackson's question there's there's still the undesignated unobligated reserves MH right which is the 3.2 million that is set up for roughly 3 million for these types of emergencies yes so we have three million to make payroll or any other things um that's good okay okay and we could transfer from another fund I think it takes the council to go from one entire fund to another we could yeah yeah it's just not something that we can do we have to like you said we have to go to council do a transfer of funds okay thank you you're welcome I think page 13 of the budget book um if we can go there shows the contingency actuals for 21 and 22 addressing council member Jackson's question um yeah so the very last line item in total expenditures there out of that we can see we can go back to the now this is actually what was expensed um the first two columns to the left for each year so the 2122 we we passed a budget that year for contingency however those expenses I'm assuming and I think this is correct cuz I remember take looking at this in I think last year I don't I do not think we expended any money out of that which I think happened again in 2223 and then we passed a budget of a contingency of 1.2 million and then I I don't know what amended means um I think that's I mean I of course amend means change it looks like it increased by 300,000 but I guess we we amended the budget and then what is proposed today is 1 5 million that is correct yes um the amended budget um I haven't been here for a full year cycle but I believe um about 6 months after the uh budget is adopted we go through again and re-budget to be more accurate so I believe that is what the amended budget is and is this number is the 800,000 the balance is current proposed included in this number and I guess why is this one Higher does this include uh con contingency for expenditures in other funds that is correct yes it would include the uh CRA contingency um and the waste water and storm water okay so when we take the current proposed 810,000 and we add it to the CRA in the sheet that was provided that that lines up with the one point um on yeah the um so the general fund and the CRA is the lines share um of that contingency but we also have contingency for other special Revenue funds and our Enterprise funds um so let's just say between the general fund and the CRA we have 1 Point 2 million and so we have about 200,000 in um contingency and the other five six specific funds that we have okay got it and as a percentage of the total budget which that far right hand column contingency about 4% of the 38 million and prior years I believe it was much l lower have been wrong but that's a good indicator to look at as a percentage of budget um I have um this current Year's budget in front of me and um this current Year's budget was the contingency was 3.4% mhm 3.4 MH the one we we adopted mhm so the historical data I guess okay so the total contingency is is 1.5 million in all funds in which 800,000 of it's the general fund and we do know that 418,000 will be CRA if at the current and so the lowest uh at 3.2 would um I I assume would reduce the other funds as well uh in addition to the general fund and CR but it's roughly going to be cut in half right so one point the current proposed balance 810,000 48 is roughly 1.2 and then it would go down to 3.2 600,000 yeah I believe so if yeah just to redo the math it's let's say we're about at 1.5 million in contingency now mhm and we take um if we go down 2 3.2 that means we're losing about 500,000 in the general fund plus 117 in the CRA so let's say 615 um so we'd be losing $615,000 in potential contingency so 1.5 minus that 615 would be uh slightly less than 900,000 yeah it's almost 50% perfect right well in in the last years we have not used we did not expense anything out of the contingency 21 22 and 22 23 and 23 24 we at least know that probably 20,000 out of the 200 something thousand has been expended off the top of your head um um I think um so those far left columns the actual columns so we show 2 years with their actual data nothing um yeah nothing shows for contingency um but we do show the actual revenues and expenses for that year and then at the very bottom we show the total revenues minus expenses so that's kind of a kind of a different way to think of it um so that's why it shows up as we're not spending the contingency money thank you and the year before 2021-22 um we had 780,000 of excess revenues ere expenses um so you can look and see the actual revenues over expenses over the past uh three years is about 780,000 and then 3.3 million and then 1.2 million you council member Davis this for Tim I know you had asked I think one question anything else this time yeah just a quick question um the decrease in revenue for the current position and the columns here so like halfway or roll back these are um things that would be have to be cut from the budget that amount of money would have to be cut to balance the budget that is correct and the the third part the lowest part is assuming that the money we lose would be directly taken out of contingency thank you for this this is really very helpful thank um that's all I have right now okay so I think the um well the CRA meeting that we had last time we went through and discussed uh the Civic Hub project which I think was a was it 1 million or 1.2 1,50,000 and the email I think our finance director sent out today short email dating that I I thought I had it I don't um 2.88 in general fund cips have been moved to out to a future year include that so yes and in Total 1 million 55,000 in C C CR ACS have been moved out to Future years okay so the 28 2.2 million in gen general fund cips have been moved out to Future years those two are thank you yep that's the one do we know which projects I the Civic Hub is a part of that yes I have a list in front of me can we I guess are those that 2.2 million in cips is currently in this printed budget yeah that number the 2.2 uh million in CPS that have been moved out since the original um CIP Workshop in April um that is the number of original projects that uh were potential projects in April and that have been moved um to Future years um as of now so it's saying $2.2 million in projects has been moved in the general fund and 1 million5 5,000 in the C and that is reflected in this budget the printed one okay thank you so the CIP section of the budget Capital Improvement program page 23 has the uh Civic Hub listed into another year wh uh which page council member Willis 123 123 thank you I was at 82 but I think let's see that 123 is the Civic Hub saying is is still in here it's moved out to moved out thank you yep so that's summary and then was it the presidential streets I think the other 5,000 comes from page 125 on the uh public art installation it got moved out to 2526 as well so those are both the CRA moves yes page 123 and 125 and 125 and then the general fund moves [Applause] um I have a list in front of me that I can um read out that sounds great thank you um out of the general fund I think an easy way to for all of us to go over this is to go to the um general fund summary of the cips uh let me look for that page yeah should be page 82 so from top to bottom um fire fire rescue um four for 450,000 has been moved out one year that used to be um to be purchased in this or in the upcoming fiscal year um um so the fire the new Fire vehicle has been moved out it is currently fr4 so that one was moved out yeah um cipf fr4 the new Fire vehicle um the next one is im1 the IM building replacement that was originally planned for 500,000 for this upcoming fiscal year and the next one that has been moved out is um IM5 the city hall air conditioning replacement oh I'm sorry um yeah so IM5 for 350,000 has been moved out one year um im7 roadway repair and replacement has been moved out that was 250,000 and I am8 the new bucket truck has been moved out let me know if you want me to go faster or slower think they're doing great okay um the next one that was moved out was im12 it was originally planned to be 108,000 so 58,000 was cut and then the next one is um The Parks and Recreation uh pca1 um their department vehicle replacement that was originally planned for $40,000 that has been moved out um the next one is PRCA 5 Rovers space West for $90,000 that was moved out and then PRCA number eight the gymnasium Court dividers for 20,000 was has been moved out and then all of PRCA 10 11 and 12 has been moved out for their total values of 990,000 70,000 and 10,000 and the total of all of those is 2,1 88,000 that has been moved out since the um April CIP Workshop please let me know if you want me to repeat any of those just want to go down the line I think I'll say them back to make sure thank you f fr4 i am1 i am5 i Am 7 I am 8 I am 12 I'm actually 41 just in case you I had to uh then we go to Perka 1 5 8 10 11 12 that is correct thank you and of note im12 uh was originally 108,000 so it has been cut $58,000 so the number that has been moved out changed for im12 is 58,000 that was for number Parker 12 uh that is i12 oh I im2 sorry MH got it so that one was reduced but there the the 58,000 it was reduced for whatever reasons that is not needed in the next year correct okay mhm there was a few others that were reduced I believe like the Perle one from 40 to but but it was moved and reduced um I think that was just moved to two years yeah that one was it was split yes split okay I I see it so Joey this is this is all being moved if we drop the millage rate correct um if we stay at the Cur if we stay at the um 3.45 it does not have to be dropped yes this the things that were moved and or reduced were to get us to the the 3 4941 middle of the road current proposed millit rate so th those are accomplishments we've already done to get there thank you and so the well I think that yeah that's the two18 and that that's the number our finance director what yeah I think this is it's it's from April but it also includes up to the most current yeah okay I have a question Mr Mayor May Pro Tim um the Nancy Hansen Recreation Center maintenance 100,000 is that 100,000 going to apply to the tennis court that needs to be fixed no ma'am uh that that's specifically for the building the Recreation Complex building and um Molly can certainly talk more about that but I don't think she would have any problem spending $100,000 on that and she would probably be happy for more so the 70,000 that we cut out is that I mean we is was that the money that we were going to fix the tennis court with the tennis courts is a separate item um PRCA 4 the 100,000 was for the roof and okay I see tennis court resurface okay okay so if we go to back to page 13 please that was the one that has the city Consolidated Financial overview kind of everything in in one page 13 in the thank you the so the expenditures here the 5 point 6 5,591 35 down in the expenditures kind of the third one down and the 2122 column um it the way that I I look at this is the operating budget what we right above it and so we could take I think operating and add it to personal expenditures it's roughly 16 million and then The Debt Service is 17 and then we separate the capital outlay and the transfers I think and we're roughly at just under 20 million is what but I think our expenditures were what we'll kind of call operating to run not including Capital expense expenses or any transfers out but like in the state of the city one the big high level is we spend about $18 to $20 million a year and operating operating in Personnel yes and so in the uh if yeah if we looked at prior years just taking out the capital outlay we spend 18 to 20 million I think on on average what we're calling I guess operating expenditures and so the yeah the if we let's just take one item op the actual one that says operating there because operating is used in another way where we add all those up I think when we talk about total expenditures but the 12.8 million that happened in 2122 then the next year we actually spent 10.4 million so there was a reduction in that particular particular line item for whatever reason then this year we passed a budget that was 13.1 million so went up higher than the the year prior and and a little bit above two years prior but we do not know what we what we're at right now actual in that particular line item I don't think that's just saying the budget we passed was 13.1 and then amended to 13.15 but we don't I think know the actual and the reason why is because the actuals can be a lot different than than what the budget is and I think the last actuals we saw was July um or June I think June and I think we were a month or two behind so we would expect I guess um the July one next but from a a 12-month perspective it's we really have we don't have 25% of the year and I think we have one more month or I guess the end of this month would be the end of the year and so we've been through 11 months we're closing in on the final month but we really have until June to to make decisions on the actual so I know that those things take time but do we have any indication on where like just the operating budget is or just even the total expenditures because when I see this the percentage of total is really breaking down yeah the allocation but there's one page where it does increase decrease oh it's page well it's the page prior but that's okay we we're we're looking at a 15 or yeah 14.8 million and so yeah that's a that's a lot of money and I and I want to see is 14 8 is much higher than the last actual we had the last actual was 10.4 that was the last one and so I think this year's actual would really help or year to date no and that same rationale is sort of what I have tried to apply on every line item and as much as I can especially on the big ones but get is there any year-to dat actual at least the bottom line number on how we are on expenditures we passed a $37 million budget but do we know if if we're I just don't want to yeah what is our actual to the most current that we know I guess on on the on the bottom line um I'm currently looking up the last Financial reports that we did which would be for July mhm so I can um look for a number thank you very much appreciated and the Mr Wild Joey and you can interrupt anytime you're ready looks like you might be okay yeah I found a number so as of July total expenditures were 17 m715 th000 17,7 15,000 715,000 but yeah 17 million and over 700,000 and we budgeted for that um what was the budgeted amount out uh 13 million so we budgeted 13 million okay so it's that exact line item the operating we budgeted 13 13,1 153,000 and we are our actual expenditures is 17 million um that might include the capital out um that's just general fund um which this the numbers on the screen are general fund and all the other funds um so I'm looking at just the general fund um I can pull up the general fund budget um the expenses would be 22 million so as of July there was 17.7 million spent and out of a total year budget of 22.3 million as of July that's total expenditures that is just the general fund the total expenditures yes where can we go to see that 22.3 million in this budget book um I'm looking at at this year's budget that's where I got that number from okay general fund [Applause] oh I think I found it Joey page 23 of the bu budget book this is the line item and this actually shows the increase decrease so down at the bottom and this is a better example well that's revenue is 23 and that would be that would be what was budgeted as expenses too since we match the revenues to the expenses okay so you're saying the actuals would have been the same that year the actual revenue for 2122 the First Column of 19 m916 yeah and this again this is just this is just the general fund yes so now we're focusing in on um just the general fund and not the numbers that we were prior that we were looking at before no this is great thank you I think yeah so this n roughly this when I earlier I said we spend roughly 20 million I think uh is this same page though showed it on expenditures I thought I saw that I get as a total the same or is it does it then break out into all the Departments yeah it'll in it breaks out into all the Departments okay um yeah so those expenditures the going back to page 23 just the general fund was1 million or that's the revenue mhm but that was what was spent um to find Total expend expenditures is on page 45 so then we can compare total general fund Revenue to Total general fund expens expenses so page 23 for the revenues and page 45 for the expenses perfect so 45 is non- departmental but no it's you're saying it's the bottom line here that totals everything up which so 2122 we actually spent 18.1 million is is that right 18 ,1 3,564 that's what that's saying that is correct yes okay this is great so that's what I was saying earlier we spend roughly under about a little under 20 million then then the next year 2223 we spent less we expended 17,350 9,473 now so the actual Revenue in in 222 was 19.9 roughly 20 and our expenditures was 18.1 the actual Revenue was 15 million in 2223 15.6 but our expenditures were 17.3 so we actually I think had a a deficit there um and then in but that's the end of actuals we don't have well no you just provided as of July you said we were at 17.7 million yes okay so year to date is 17.7 million we passed a 21 or a 22 roughly million doll budget and this year we want to do the same a 22 yes so the 22.7 is is is I guess about a million dollars a little less than a million doll6 or 700,000 more and I think my point here is that the actual is 18 million 17 million we're at 17.7 today we only have August September October no we we have two more months left do we think we are going to end up increasing the 17.7 all the way to the 20 1.3 cuz that's four I'd say it's pretty on track to the 3 to four million because as of July we were at about 79% of the budgeted expenses and um off the top of my head I think July that is 80% through of the fiscal year um so it's pretty on track okay and the 7% on the far right is an increase of the proposed budgeted this year verse the budgeted last year not an increase from the actual well correct yeah that's the increase of how many expenses we want to have versus the um the last version of a budget we had got it okay so that 18 million 17 million we're at 17 sounds like we might be at 20 but there's there's a lot of money there still I think um the city manager and I had a chance to kind of do this on a couple uh well I think it was parks and R was just the one of the first ones we went to and he was explaining sort of how the budget cycle goes to the department directors and comes back and one of the questions that mayor ptim asked in the budget meeting was it could a 10% reduction in the operating cost and that line items that we were just went through when you said that that was where I was thinking in my head not Capital Improvement projects but when the city manager and I were talking about uh reductions um can we find them in the operating budget page 41 um is a is a is what we went through and and literally went all the way down the line as as an example if we can go to page 41 please um and one of the things I don't have that ver version that I was marking up but now that we know that the actuals are the first two columns 21 22 22 23 we can just apply the same thing to this particular department and I think it could be applied really to any and the first column we saw some scenarios where like this is a small one and I just jumped because I remember this one in the operating budget there's one called printing right in the middle do we see that one and I think this might have been brought up I don't but just as printing is 7, $125,000 that's actually what happened in 2122 and then the next year it was $2,000 left [Music] $5,151 13,000 and then we are keeping that at 13,000 and so it's hey we're holding that budget at 0% I don't know where the actuals are on this today but the two years prior were were much less uh about half now that's obviously not an amount of money but you can do that on on all of these and some of them made sense some of them not as much and I certainly understand things decrease and increase but those first two columns on the actuals I think are the strongest indicators and there were some I think that did not make sense to to me I'm trying to find it so yeah Special Events 16,000 is what we spent and then we spent 28,000 and then we passed a budget for 40 now we're at 46,000 um I'm having a hard time finding the one that that I had a note because the new budget book but I I think my big point in this is there [Music] there there are reductions in I believe in in just this small budget and I think would when I look at the actuals because that percentage increase on the right is just based on the budget of this last year and I and I can't emphasize that enough and I think it's there are opportunities to to reduce when for me only when I look at the actuals um now if it goes up and it's j and it makes sense I think that that's fine uh and things should should go up on certain areas but some of these and going through the the budget is is really where I hope um we can take a different approach uh moving forward and I think this is more of a higher level conversation but the higher level from the budget not down and and in on necessarily Park or any particular Department that bottom line number um if there are no opportunities there and I think that's what we discussed last time and then we concluded that well we need to just go to the CIP I think we found opportunities in the CIP to to reduce um and I think yeah we took the million dollars from the Civic Hub pushed it forward then we said let's allocate a certain amount of that uh to to fund for Nancy Hansen and some other things and then we we decided that we would Circle back I think at the the next CRA meeting and a lot of it depends on what happens I think in here my goal is that we 100% try to provide a tax decrease and I cannot thank Joey and the entire Finance team enough for putting together this one sheet because every year I'm over trying to scribble this out and because I know it's a moving number but this has served me very well so thank you and when I can see the balance up at the very top right um that you had put together in the [Applause] sheet the 6.7 million in Revenue this year or 6.8 million it's really if we go to 3.2 we're down to 6.3 million in revenue and last year that's higher than last year's um thank you yep that's the one and so I think 6.3 million is is is really good uh for the City of Cape Canaveral and we've seen an increase in property values and I hope that we if there is a will to to decrease the taxes um my hope is that like the city manager and I did in the operating budget for one and I we we'll find a few of them there and but there if there are opportunities in other departments great um and then I think we did identify opportunities in the capital Improvement projects really based on our priorities that the Civic Hub is a very beautiful project but it doesn't fix the major problems in to in our neighborhoods today around storm water and flooding and so my My Hope Is that we can allocate the capital Improvement projects to those priorities uh we make sure that Public Safety is is topnotch and then go in and really try to Implement what we discussed at a minimum and if there are opportunities in the operating budget find those as well but I would like to see us give it a shot and see what would that would do I guess it is and that's 3.2 even just 3.20 there's no the millage rate was ran that's just general fund it's exclusive of the library fund thank you so the combined millage rate 3.2 the combined milit rate would be 32422 3422 3.2 422 3.2 422 is the combin that number that combined number is on the sheet um that you have in front of you yes up at the top where it says future options and then the next columns say library general fund and total I see it thank you the 3.24 is what percentage below the roll back rate uh I would need to do the math on that really quick because if well I think the resolution that's before us today is a is a millage rate of um yeah 34519 General 042 it's a uh combined 3491 or uh 34941 3 4 941 and that says it's going to bring in that 68 million a little higher than $100,000 higher oh that's at a 95% um that number the agenda summary sheet shows Financial impact of 6.8 million but the actual resolution page one resolution 20249 section one that language represents an increase of 3.99% the last line of section one this millage represents an increase of 39973 so if we went to the 3.24 4 22 this is the middle of the road rate in the resolution right yep I can match that up I need to what a little off 3.49 yeah I guess that's that's the first question is the table shows 3 4 941 that matches roll backs 3.36 okay so it's just the change from 3.36 to 3.24 because that that's the percentage that would have to be written into the resolution I would assume if this section one statement was to say to be amended in to to state 3.2 what would the what would we need to amend the percentage to be um according to the quick math I'm doing right right in front of me right now um it looks like it would go down it would be below roll back by 3 point around 3.5% so it's a four roughly a 4% increase today but if with the 3.2 would o it's a 4% increase over roll back rate this would be a 3 and a half% decrease below the roll back rate that would leave us with a contingency of 600,000 at least for that portion not including the others and um about 500,000 in revenues I think we found close to that number and so do we need to do anything in this budget gu where I'm confused is if the do the budget line up with this resolution because this resolution shows middle of the road but the budget has made the the Amendments that we talked about earlier the budget is middle of the road does that make sense the current proposed is this middle of the road which is 34519 and is that because that's what we voted before even though we stripped things out during the last budget meeting that is correct okay the effect of stripping those things out you see in this sheet where the contingency went up okay okay I thought that we were stripping stuff out to to go to the roll back rate though we're just trying to make a budget based on the middle of the road rate cuz we that's the way we have to do it if if we say we want to go to some other millitary this sheet shows you the corresponding impacts so we can always present a balanced budget we don't want to present an unbalanced budget and so we'd need to make a motion in this meeting if we want to go to something other than middle of the road in order to get the resolution brought back to us with the correct verbage yeah and then Joy's presented how it would impact based on where you want to go and that's what you would see at the next meeting adjusted like that yeah how the budget currently is it balances with a very large and healthy um contingency so if you guys choose if you're happy with middle of the road you see the numbers where we're at now then you can choose and have that contingency and even with the large contingency we have now if you're happy with this then you can choose to reallocate some contingency on the projects that have been cut in the past I think another way to say it is you voted to move things out of expense columns move them out push them down and you didn't specifically ask for contingency to be increased but we had to show it as an increase to present a balanced budget so the the non we talked about non-designated or City attorney basically it was just moved to now it all makes sense thank you that was my biggest confusion so the in contingency I guess sort of increased it's it's the thing that moves and flexes with your decisions until you make the final decision then that affects the contingency thank you very much if there's a desire to go to the 3.2 um I spend as much time talking through that as we need but I I I don't think I'd like that oh sorry I thought you were done I think we need to keep a healthy budget healthy contingency so I'm not for rolling back where we take away all those funds because if something happens we don't want to make the city put the city in a tough spot I think we need to keep it healthy thank you council member Davis Mr Mayor yes council member Willis I could see I could see supporting the roll back rate of 33199 um because basically what we're looking at is any reductions in the contingency and like uh council member uh Davis has said I want to see a healthy contingency now if we wanted to be able to reduce some operating cost that would be great that would help improve our contingency but we can't count on those operating costs being able to come down so I think this past year shown us that we're having to spend contingency based upon inflation and cost increases across the board so I originally voted for the current proposal of 3.45 one9 but I see that we could go to roll back and I would be willing to support rollback to maintain the uh healthy contingencies and let uh departments search for operating cost reductions but I think going further down might put us in a bad spot and possibly uh result in having to increase other fees for the waste water and storm water in the future if we have uh negative impacts during the year council member thank you council member Willis council member Jackson well I'm actually willing to go to the 3.20 and the reason I say that is if you look at the amount that we would be cutting out of the future contingency you're talking about you know right around $500,000 well we've got 3 million in um undesignated unobligated reserves and so with the way the economy is now for our citizens to me it makes sense to go to do a cut because when you looked when I look at how much this budget has gone up in the last four to five years it's had tremendous leaps in it and we have that un unobligated undesignated reserved sitting there so I don't see how going up on T or hitting roll back leaving it at a high tax rate or an increased tax rate from the prior years really does that much because we're talking about 500,000 that that we're looking at in those funds other than there's a difference of about 117 on the CRA but we have millions sitting that are not obligated so if an emergency happened we do have something to pull from if we needed to so to me with the economy the way it is is and the um off the charts inflation for people in this city and in general um I think looking at you know taking it lower than roll back is a possibility If These funds weren't sitting on the side then I'll would be saying don't go lower than rollback but we've got these funds sitting on the site and um I'm also you look at some of the operational budget and you look at promotional I mean I don't know what all that's for but it takes a pretty big jump of close to a 50% jump um special events same thing taking a a really large jump so and Pay Pal program I don't know what that is what is pal program but there are things that you see some fairly large jumps and that might be inflation inflationary you know no increases but when you look at those things operational we might be able to find some things there that we could lower council member Davis yeah when you talk about having the 3 million extra I mean and it sounds like oh that's great we have 3 million but that 3 million will go quick if there is an emergency or disaster or hurricane or anything that 3 million is nothing and if you think about rolling back now I mean I'm I don't like to see taxes go I pay taxes in the city all of us pay taxes in the city but if you don't do it now think about a couple years from now because if I'm not if I'm not mistaken they we will eventually have to raise the taxes and it'll probably be even more a bigger jump if by by not going or by going to roll back now so in a couple years you're going to add you're going to really hit them with a big tax increase so I I'm not for going to the 3.2 and I think the 3 million will go like that so I don't think that's enough to to count on thank you I would like to point out and just reiterate and I put the information out there um so the proposed millage rate where it currently is um based on how much a taxpayer in Cape Canaveral paid for for this current fiscal year at theate rate at the proposed rate for this upcoming fiscal year if a homeowner owns a $300,000 property in the city at the proposed rate they would save $3.7 so it's pretty much the same but they save money compared to um year on year on year and if it went to roll back a homeowner who owned a $300,000 property would say save $43 compared to the year before thank you may Tim Kell if you yes thank you mayor um I'm inclin to agree with the 3.2 um militate um we have we would still have 314,000 in contingency and 300,000 in the CRA contingency I think that's important um and we have that unobligated funds I think at this time and this economy um we have to do the best we can for the residents to you know bring taxes down I know insurance and everyone's houses are going up crazy amounts um but I think if we can still get the projects done that we need to do have a a decent contingency I think we budgeted it we had it shown up here before um last year's contingency was I don't know what page that was Joey if we could pull it up I'm sorry the um the page that showed the contingency that we had last year and what is proposed this year thank you I don't remember what page that was page 45 45 yeah yeah we had 229,000 budgeted for last year the actuals where we are now Joey do you know we do we have to spend any of that 229 um off the top of my head I don't know but I want to say we've spent we have left uh we're in the 100,000s that we have left mhm so the the 810,000 is a 24% increase to me if we can give part of that 254 increase back to the resid in a tax cut and we have the unobligated funds to back us up if we need it it would be worth it to me um as a taxpayer here and you know as trying to do what's what's good for the residents um you know our budget increases have happened a lot over the past years and our residency the number of people that live here has not increased we have not really um grown as as a city I look was looking up some other stuff and in in 1960 um at the census we had 9,980 people in 1960 I think we just hit 10,000 so in 10,1 and you know all the things that are increased you know the to me the budget is important to keep as low we can because we have all these hotels that we promise people if we have these hotels our taxes will stay low they are low but if we can do as much as we can to keep them as low as we can we've added 80,000 hotel rooms we've had to put more fire um and police in our city because of those hotel rooms um when I talk to people they go I don't understand why we have all these hotels and we have and we have tax increases so if we can do whatever we can to keep them low and keep you know within our means I I think that's the best thing we can do for the residents um and like I said uh our budget has increased a lot when I went through the um operating budget I don't have it in this new book but um 10% off of each department you know and again we talked about it and we'd have to look at each line item but it it came up to roughly 305,000 if we just cut 10% from each operating um fund and there's a lot of things that you know like the mayor was saying the actuals from a couple years ago into how much it's increased um an example is you know we went from on the IM we went and I know I talked to June about it we went from I think it was 6,000 in sign Edge to 42,000 and I think for 25,000 we can get a lot of signs still and build up to what we we need you know things like that are important to look at and try to you know make sense of it and and do what we can to uh keep the taxes low that's all I have right now thank you thank you and one comment as far as the need to increase taxes in the future um page 78 of the budget book this is another very nice thing our finance department put together uh which I appreciate first time we never saw this in the past this way this has improved I do think it would be good to go back in time further but either way over the past 10 years um we show an increase decrease in final to roll back rate so that fourth column to the right the percentage increase decrease and final this is the the actual and so we increased taxes last year by 72% the year before we're at 3.85% we had a true uh roll back two years in a row and I can't get past the the 17 18 that 20% and that that upset some folks and and I know that the next year we started taking on a lot of debt uh that we are now working towards paying down but a lot of those were as we've talked about about the C5 and those things that since that 19% increase and if you stretch that out you can when you do a big increase like that it basically allowed for you know four years and just the 10year increase when you add all that up I don't the the 3.8% there's another the last 2 years 10% and so taxes over time over at least going back to well heck that's when I I the next year was my first term the 2018 really is late 2017 and then may PM you came on a year later and uh just wanted to complement this and point this out that we we just went through to 10% tax increase or the two over the past couple of years and so now we're proposing another four and and that um I think we can we can decrease and that amount of money does stay in the homes of their contingencies their plans and I know that I think it was $45 on a $300,000 home but it's 70 I think or $80 on a a $500,000 home roughly that is correct and and I know that's that example is discussed uh every year um and the per capita it doesn't seem like a lot but we know properties are more expensive than that too and we also know uh that are small businesses all along A1A um pay a lot of taxes and Cape Canaveral is different than a lot of these other cities We compare we do have a low Homestead right and so we do have a we do get full value out of these non-homestead tax bills a short-term rental tax bill um is you know they don't get Homestead exemptions obious I think and so I feel very good about it I hope we can do the 3.2 I think it's going to be very good for the community and it's something um that I have have tried to advocate for every year and I just cannot appreciate City staff putting together this sheet the table we saw today to help get to a a a decision and I agree with everything I've heard uh as far as being covered the the the the reserve is over the 20% I think we're at 20.5 so there's a a little bit there even that's just not even going to terminate our city manager has the ability to go down to to 177% we spent some time looking at the mechanics of what that actually would look like and just historically we haven't really spent the contingency and we haven't had anything that's cost us I think to to my knowledge a $3 million scare could it happen well we've had some Irma was a bad hurricane I mean if if that's a cat five coming toward just the went North if maybe that but it still had a bad it was bad damage thankfully it veered um but we have to use the data and and know that I think every line item and the the year-to-date actuals the third thing I will complement Finance on that's been really helpful is the uh every month in the back of our book were given the cips over $100,000 I ripped this out of the the July this was the the last regular meeting was in the very back and I didn't get a chance to look at it there but a lot of these projects the actuals um some of them are depending on on grants but some of them say 100% complete is I think we were talking through and they're well under budget and that's awesome that is really good that is something that uh just every Department who who can make that happen and and no shame in going over budget it is important to to get it right and and we know that things cost more I certainly pay more than I want to in many occasions so I I understand that too but it is good to see uh that it doesn't put all the pressure on the contingency I think the reasons that those contingencies may have not have been spent that year was because other things went under budget and they were able to to get paid for and I think that's another way it doesn't just depend on the contingency one goes under one goes over and this has been a very helpful tool and with that um that's all I have to say so if there is a will to lower it we are on resolution uh the first one uh 20249 is there any uh further discussion on this Council a motion city manager City attorney I'd like I'd like to make a motion that we do excuse me I had my hand up which I was ignored but I I I'm promise you I'm not ignoring you well that's fine I'm I'm I have nothing I'm looking the other way you say mayor council member Davis okay thank you got it no I'm fine okay I'd like to make a motion that we accept adopt the 3.2 o millage rate um for if I could clarify um is the motion to adopt a combined millage rate of 3.24 22 that's it sir thank you thank you I'll second got a motion by council member Jackson and a second by mayor protim Kellum council member Davis if you had something we are still gonna say I can I would go with the 3.31 I think going to the 3.2 just puts us um in a position we may not want to be so I I can go to the roll back but I will not go to the 3.2 I think it puts the city in a bad situation because when we don't have the money is when something will happen are there any other discussion on this city manager any comments I think you clarified the the combined yeah that's that's the clarity we need thank you City attorney are we okay from your perspective at this point yes and I section one is there any other sections yeah section two I me staff's going to have to recalculate the the aggregate total um based off the 3.2 and 0422 and then they'll have recalculate percentages so that the millage rate allows you to do the rest of it yes thank you okay city cler council member Davis against council member Jackson for mayor protim Kellum for mayor Morrison for council member Willis against Okay resolution 20249 passes 3-2 which brings us to our next item ordinance number 19 2024 we obviously just spend a lot of time in the budget to help determine the resolution Mr City attorney or do we want to take a quick break at 7:10 typically we try and come back and try to knock this out that be okay good let's let's take what five and we can come back and I think move through this it's 711 we'll try to be back by 7:15 716 e e e e e e e e e e e e e e e we will need the City attorney to read I think the ordinance but I get started in a minute as soon as he returns okay well there's two things things if you can read it that's excellent I also would like for him to weigh in when we reconvene why don't we go ahead and reconvene and then uh if you can read that's great but I want to address something else so if we're ready city clerk yeah all righty it's 7:19 I call the meeting back to order we are in our special meeting here uh after taking the one of two items that are a public hearing item we just finished resolution number 20249 um at the beginning of the meeting during public participation I think from the end I did not see any hands raised for anyone who intended to speak I also did not see any citizens but if there are any folks here who intended to speak uh these are both public hearing items and I also checked online um there's a couple of folks online if you intended to speak um ask that you please raise your hand or come forward now and we'll make sure that you're heard and uh follow any other guidance our City attorney has so with that I'll say it again resolution 20249 which was a tentative millage rate uh for the levy of adval arm taxes to fiscal year 2425 was just voted on however it is a public hearing item and in the event we did have someone who wants to to speak on this please raise your hand or come forward seeing none Mr City attorney um before going on to ordinance number two is that okay thank you alrighty Council are we okay with that thank you this is ordinance uh item number two public hearing ordinance number 19 2024 City attorney this is ordinance number 19-22 an ordinance of the City of Cape canaval barar County Florida adopting the annual general fund Wastewater Enterprise fund stor water Enterprise fund Enterprise Capital fund special Revenue funds Capital project funds and agency fund budgets for the fiscal year beginning October 1 2024 and ending September 30th 2025 providing for an effective date this is first reading of this ordinance which is actually your tenative budget hearing um that was advertized in the um in the tax notices so Mr thank you very much Cil this is I'd like to go to public hearing with this but before so are there any technical questions or any anything for city staff and when we come back we can discuss it further but any questions at this time council member Jackson okay so we just changed that millage rate and this resolution has the old millage rate so how do we handle that because this is talking about a 3.25 increase and the budget for for the year so does that change this resolution what we just did on the first and mayor would help I think if we turned over to staff and let Joey talk about how the operates from here how to get there sounds good thank you yeah um from here on so that total number that we see that 38 M365 131 that will be changed by um us dropping the general fund and CRI contingency um to round those differences so that will be updated and then we'll update the um percent increase on the on the 2B budget compared to last year so those numbers will be updated for the next budget hearing um and then to confirm to go to the um general fund millage of 3.2 we will be changing the budget and taking the general fund contingency down to 314,000 and the CRA contingency down to 301,000 so mayor that that's how it can be presented next time you see it um and next time you see it as a second and final time um and that's before you would approve the ordinance you'll have one more look at this as proposed as Joey just explained but that's how we get there for tonight if you wanted to that's a simple way simple way to get there that's great thank you council member Jackson that was my my question I just was wondering if we needed to vote on this tonight because it just changed and how we'll handle that because ordinances take two readings okay so to vote on that we would need to preface that motion with the fact that there's uh the millage rate that it will be 32422 instead of a 3.25% increase is that correct I mean you can direct staff to bring back the uh budget the motion would be to approve the budget as amended by staff with at the 3.2 rate by bringing the general fund contingency down to 34,1 126 and the CR contingency to $ 31,48 and present that at the second and final budget hearing okay so that would be an appropriate motion okay so does we need that that's the motion we' need okay but this ordinance doesn't reference any of those numbers so what why do we I mean we would just adopt the ordinance wouldn't we and so you you adopt the ordinance as the manager indicated the the exhibit a is actually the budget so staff's going to go in and modify the budget pages to reflect the reduction in contingency based on the 3.2 uh general fund millage rate that the council approved at the tenative millage hearing right I mean that's all I mean that's all staff does and then you get another look um at the Mig and budget at the final hearing um just out of curiosity Joe how quickly could that budget book be turned around and presented to council members and me uh I could have it done by tomorrow couldn't ask for more than that thank you yes because exhibit a does give those numbers from before or gives the [Music] total so when it was advertised it'll show one of these numbers are all and then on the second one it would reflect the new changes that we voted on tonight okay okay this is a public hearing item are there any other questions first city staff at this time seeing none we go to public hearing if anyone would like to speak on ordinance 19 2024 please come forward and for those of you who are listening we ask that you please raise your hand and we will unmute you do not have any cards up here I do not see any hands raised and with that see no hands online we'll go ahead and close public hearing bring it back to the council to discuss so that motion if you like or if there are any comments Council mayor protim council member Davis did did we make do we have a motion on the floor not yet from the public and then bring back we can do a motion now I'll make a motion that we adopt ordinance number 19 2024 with the changes in the milit rate contingency those changes are $314,318 would be the CRA contingency with that motion I'll second a motion by mayor Pro Tim Kellum second by council member Willis any further discussion seeing none City staff any final comments or anything that we need to know no sir thank you for all the the fine input and Clarity that you provided tonight Council we really appreciate all that I also want to thank John Deo Joey blacker chery poo and the whole staff for putting together a terrific budget and working so well with staff thank you and can I say one thing I'd like to thank staff because I know a lot of people that looked really hard at this early on and they removed projects from the very beginning that they felt like they could push out and the amount of information y'all gave us was just tremendous so I really appreciate that as well but I wanted to say that because you brought it to us with things that the all of the Departments made proactive choices in the beginning and started looking at how they could work with us on this so I'm appreciative for those things you city clerk council member Davis for council member Jackson for mayor protim Kellum for mayor Morrison for council member Willis for right ordinance 19 2024 passes 5 and with that looking for motion to adjourn I'll make a motion we adjourn okay meeting adjourned