is now workshop is now called to order. Everybody ready? Okay, we will commissioner more you would please lead us in our invocation. Stand if you are able. Okay, let's bow our hands. Dear heavenly
father, once again we want to thank you for allowing us to come together. We thank you for life, health, and strength. We thank you for waking us up to a brand new day. one we've never seen and we won't see again. We ask that you give us grace and mercy. Help us to do those things that are pleasing and not in your sight. And Lord, we ask you
bless each and every one of us that are present on today. Give us strength, understanding, and knowledge to do your will. In all these blessings, we ask bless Jesus name. Amen. Pledge allegiance. I pledge algiance to the flag of the United States of America
and to the republic for which it stands. One nation under God, indivisible with liberty and justice for all. Thank you everyone for being here this morning. You ready to get started?
We did print up some updates um mayor and that's on your on the dis for you. I know you probably have some notes of what we had discussed before as well. Um a lot of those changes were made and um are observed in these new copies that we have. Um we can start at any one that
you want but um I don't know what's at the top of your list. I have waste water if you want to start waste water. Okay. Yeah. Clarification before we start. Sure. Um just from the city manager.
Okay. So the printouts that you just handed out, they have some changes from what we were given over the weekend. Correct. We we found some errors in in some of the tiebacks to um some wrong cells that
were utilized for the basis of our um for for what we utilize in the budget. So instead of being tied back to let's say 2025 amended budget, it was tied back to a a different allocation, different cell, and we we found the error. Um the numbers are still pretty
close, but we just wanted to make sure that it was right. Okay. Um All right. Just I guess if it comes to any place crucial as we go along, if you could point out where you made an update. Sure.
Okay. Thank you, ma'am. Okay. Go ahead. All right. So, we're going to start with gas. Um we can start from the top and move down these items. Um uh I believe have a zero
in them. Um the actual dates and we want to talk to those charges for services on the utility tax for promoting those franchise fees. Those are just pass through. Correct. Okay. So we have a note on there on the side. Um the next one is the gas sales
non- tax residence. Um, I I've gotten schooled on this and learned a little bit about this because originally on the note, it just talked about a charge. Um, these charges that you see here, um, at $16 is the current minimum charges, meaning that it can be you can go up
from that. And as well, there was no note on there that usage was part of this. So, I added that note as well to be clear because if you do the math, it's very much lower than what we have. And you can see that we've taken in so far year to date on June $386,18.
Um we have included uh our number to it to uh have a a increase from the unodudited 2024 at 434. And so we're we're budgeting $456,526
based on those numbers and the $16 minimum charge. But when you look back those unedited numbers, we didn't have the $16 charge in place. That was new. So I think that seems like it's kind of low. Are we not going to get Are we not
not going to reach the budget for this year? 527. Well, that's a 527. I think you did in a you did that through your cell. Correct. Correct. doing originally we added but again here here's here's where we're at with this
and and kind of lesson learned from before. We didn't want to overshoot on revenue. So we're trying to be as conservative as possible. We utilize the known numbers for 2024 and not necessarily even a year to date or a projected number which we thank God took
that out of this uh out of this spreadsheet so we don't get confused on projections. But we we went with a known number, felt that it was safe to do for the 2024 um unodudited version and and then put our increase on that. So 456 is
the number we came up with. If you want to add, we can I can put in the adopted budget for 2025. I'm not sure. I can't speak to um exactly what we're going to have. I know that currently up to June we've taken in $386,000 which were 43,732
over where we were last year at the same time. Yes, ma'am. Okay. Well, mayor, I have a question. So, and this is what I meant by police flag it. So in line nine in gas for gas sales,
you made an adjustment in the budget for 2026 that was quite a bit lower than what we had on Saturday. And so then instead of dollar um 0 increase or decrease, it's now a $70,000 decrease.
Yes, ma'am. Okay. So when you go on to page five, looking at the net position, instead of a positive 60, 732 net position and the black, it's
projecting a 43,346 negative. Can't be where we can and we can't have that. Yes. And we do have a couple things that we are working on as well. um such as our insurance costs for healthcare which will have an impact and a savings. This
does include uh our new uh insurance um totals that we received from Brown to Brown and that was allocated uh as well. Um and again this is a first round for us to have that discussion. I feel that we could modify those um revenues, but
to be on the safe side, we should probably look at it more of a uh a conservative look on on the revenues on the revenues on the revenue. And that means when we go into the expenditures, we're going to have to look at some areas where we can back off possibly on the expenditures. Yes, ma'am.
Does Steve believe that we're Well, Steve's not here. Steve just ran out real quick just to get Dave in case there's some questions with the gas so he can answer those. I mean, I think the biggest question is we shot high 527 last year. We're only at this point 43,000 over where we were at
this time. Yes, ma'am. Last year at the same time we're making this decision. So, does he believe that we're going to come in that we're going to come in at the 527 or does he believe we're going to come in higher and and our our biggest gas
usage has probably already occurred. Um because that would be is that correct Dave? Our biggest gas usage is during the winter months. Yes, most definitely. So, our biggest gas usage have already has already occurred. Yes, ma'am. So, we're seeing that as far as this budget. Yes.
Okay. So, right now you budgeted last year 527,000 is what we budgeted. Steve, what are your what are your thoughts given where we currently stand? Um are we going are we going to reach that? Because if you feel that we're going to reach that,
then it's then probably we're going to reach it this coming year. No. What do you think about that, Dave? We budgeted $527,000 last year and as of June, we're at 386,000. So, um
there's three months of the year, but they're the hottest, right? They're they're our lowest consumption. Most definitely. And um it's really going to be based on the cost of the gas and everything because I mean our markup's going to be the same, but
we could we could just barely make it or we might be a little short. We might be a little short. We might be short. Okay. So, is there a more reasonable number if we were to go up from the from this um 456 526?
Is there do you have somewhere should we come somewhere in the middle between that and the and the 527? That would be comfortable to go somewhere in the middle because consumption is going to be about the
same. I mean the cost like I said it doesn't really matter because the markup is the same but um I don't see any big load changes to be honest with you. Um, the only thing that would make any difference would be our generators. If
there's ever a we've got 225 generators out there, so it can make a big spike for that month, but um I don't see that. What is our building for this last month? Do we know for the new build for
for gas? I think it was like 15,000. Well, that's what our bill was. Yeah. We build our customers because we're looking at the the gas sales and the budget. So, I'm just wondering three more months we based on what excuse me June was
for the month of June. Do we know what the billing was for the month of June? I'd have to get with I don't know what's the top. Yes. It was like 1580. I look that's what we that's what we build out to our customers. No, that's what we Okay. So, that's what what did we what
did we build out? I do not have that number. Okay. with Jo with Joselyn. I can go look or even July. If she has July, that would even be better. By chance, she has July. Yes.
That'll kind of give us more of an idea. So you want we can do you have um you want to continue? Sure we can continue. If we go to the next line item there uh that's going to be our gas sales taxable commercial that
is sales and usage as well. Um this number um we treat it a little bit differently. Um we went with the um to be on the safe side of that with the adopted budget 2025. So we held that number at 146796
we're at we we've collected 105 uh up to this point on that and this is commercial yes commercial that also we raise the minimum charges on that one too so I would think that we're going to meet that budget yes
and we'll continue to any questions on that one okay the gas sales commercial non- taxes is our churches and schools, fire department, city hall, etc. Um we we had an increase on that. That is of course
uh usage plus minimum. That's $20 charge uh is the minimum charge on that. We had um budgeted 61,000 in 2025 and uh we were up to 56,000 as of June and 64,000
is the number we put in there for for that for the budget for 26. Mayor, I have a question. So, we've asked Ford Gas Utilities to do a rate study and I think we discussed it, but I
don't remember if we revised our rates to help us cover the cost of operations. [Music] No, no, I don't. But she said I think she said if we revised the rates, right? So, um I'm not remembering what
the potential time frame of that would be. Like would it hit midway through the fiscal year? Did we say six months that it would take us to do that when this hall was
she's going to try to bring it back to us and we would have it for the budget so that we could possibly add it figure it out into the budget. But I'm just kind I guess I'm just kind of trying to bring this forward. It's as I understand it. So I want to make sure that I'm
evaluated yet here. The rate study is to let us know um what we would need to charge to cover cost of operations. Do I have that correct? Okay. So, they were going to do the rate study, bring it back to us, and then
now that I'm thinking about it, um, and I could be wrong, I thought they said that we could do I may be thinking of another issue that we could get that accomplished for the next fiscal year within like a six-month time frame. But
I may be thinking of some other issue. No, I think we could do it sooner. We can do it sooner. I think we could do it sooner. And then if that's the case, if we come in and we determine we need to, right? Um, you know, if we need to adjust, we could adjust later on.
Exactly. But Dave's out of the room right now. My next question or my overall question for Dave is a lot of our expenses from gas are pretty fixed of employee salaries or salaries and the equipment is very expensive. And um I
wanted to say this when Dave was in the room. I mean there's just you know they're constantly on top of um improving bringing things up to date meeting the industry standard. Um so I was going to ask Dave, you know, where
would he recommend we make a cut? It's hard but he he'll be back. So when we go back when he comes back in I want to ask him about this because when you go back historically and we look at our gas sales and not commercial non- tax which
is our churches our you know our schools um we didn't meet we set that the year um and 2023 um let me see in 20 we set it at
58,000. I'm sorry. We made came in at 50,690. 2024 we set it at 58,000. We came in at 43,676. Um, and this time last year we were at
34,214. This time we're at 56,117. So that's about 22,000 almost 22 just short of 22,000 more this year um making us closer which
also surpasses the um unodudited of 43,000. There was a drop in 2024 um and so I'm wondering what happened in 2024 um and what has spiked it this year to
where it is where it is. So when Dave comes in I would like to know that. Um and I'm of the opinion I don't know where everybody else is that you know with this you're concern you know especially with the revenue that we be as conservative as we can so that we
don't have a shortfall. I agree. So, we're not in a situation. Um, I know there's there's um formulas out there to use, but you know, if we need to if we if he
feels like we need to bump that up um in that one, I think we're probably have to bump up if we're going to study and read. We would have to when that comes in. I mean, it's kind of silly to sit here and
look at it now. until we get three. I mean, well, no, it's not silly because we might not get that rate study in in time for the budget and we've got to have something, right? So, we So, it's not silly. I mean, it'll go up is what I'm saying because we're going to increase the rates. That's what study is going to say.
But, mayor, if I could Yes. Um, I think it's beneficial for us to understand where we are now before the rate study comes in and at least we know how we sit with current rates and we understand the ins and outs. Like you've raised the question, you know,
why was what's what's the reason for a drop? And you're talking about line 12, aren't you? When you say it went from $50,000 in 23 to and that that is un audited in 2024, but
it should be reasonably accurate. Yes. Um and that was because we budgeted for that 58,000. Oh, where did you see that? I saw that I have my old budget.
Okay. All right. This page. Okay. So, we budgeted 58 for 2024 and we came in at 60 43 676 which is significance. That's almost 12,000 almost $12,000
difference, right? Short short of what we budgeted for. So, is it possibly a warmer winter? You know, maybe that was maybe that's as simple as it is. David they would know what it we had storms last year too. Keep in
mind that well it was for churches and schools. Maybe it was warmer on Sundays. Who knows? We have very cyclical weather. It's hard to it's hard to say. Um and I I don't know what the gas for
resial were fine and not just schools. Like I said, my favorite was warmer on the weekend. Hey D. Okay. Sorry about that. In June, we build out 52,585.
How much that just presidential? That's everything. That's the whole bill. Okay. And then in July, we build out 48,346. That's in total. Yes. That's gas sales. That's also the minimums because just in June alone, the
minimums were over 21,000 minimums. And that's the 16 and the $20. So how much? 21,000 is the minimum. For June it was 21,276. That's the $16 and the $20 fee. That's commercial and residential.
Does she I I hate to ask her this, but does she have it broken down into residential? Can she do it into residential? I'm sure she can. Commercial. Yeah. Because our audience here has gas sales, non- tax resident, gas sales, taxable, commercial.
And a lot of that the non all that there's a lot of stuff needs to be stripped out of the budget. The way it's verbalized. It's crazy the way it's just it's confusing. A lot of it's confusing and it's just most of it if it's commercial, okay,
schools, churches, things like that, they're non- taxable, but most of it's going to be taxable. Complete breakdown probably done that way because it goes up possibly because it's up into the utility taxes up in the top. Sure. They have to be able to do that.
If she does a complete print, it's about 30 pages long, you know. So, and she can strip it all up for you. I mean, when I do my calculations, I divide them up by residential, commercial, in town, out of town rates, and come up with a cost. I
control the minimums and figure out what that cost is. As far as the taxes and all that, I don't include that in any my reports, even the government, because they'll say, "Is this tax?" And I would say there's no tax involved in this. Come back to somebody else for it. and
they're fine with it cuz they know that's real numbers. None of us. So I guess what we if we can how long would it take her to get us to break that down by residential and commercial? As far as June, I'm sure she already Well, she may already have both of them. I can go back and talk to her. She'll
have to highlight it, but Okay. So you want to know residential, commercial in and out because we're trying we're trying to figure out, you know, where we need to be um from a revenue stream where where where we are currently.
Sure. As we go forward for these next couple of months, each one just gas sales only. Yes. And not minimum. Just the gas sales only. Yeah. How much did how much how much was
build to to residential and how much was build to okay the commercial and then and then non tax and then non- tax commercial which is your churches and schools those three those three numbers let me go talk to her and see what she can tell her thank you please
send [Music] Um, okay. While we're waiting while we're waiting on that, do we want to go into um I guess you're keeping the service fee. You dropped that 600 $600.
Yes. From the service fee. Okay. Last year we were at this time we were at 18086. This year we're at 25378, but we still didn't meet the
the budgeted service charge of 29,000. Looks like our unodudited came in at 23306 for 2024. So something happened in 2024. Something happened. We also increased. We increased that as
well. Service char. higher. That's why we're at our position. Hey, I take longer showers now. That's that's my contribution. Mayor, while we're waiting for Dave, um I have one note that I would like to
share with city manager. Um there's for every enterprise fund there's a footnote on the first page that says the non-recur recurring grant revenue was excluded from total revenues in order to get a clear picture of how much revenue the department is generating. I really
appreciate that being done so that you know when you mix the grant revenues in it skews your idea of the normal revenue for the normal operating charges. That's a standard footnote we had in last year's budget. Yeah, we haven't always had that, but
it's very helpful. Okay, we'll continue because you you want to know well I think I mentioned that before, but you you want to know how you're doing on your regular operating income and then of course rent is nice, but it doesn't
usually help with regular operations, right? So that's really helpful. Um, and I guess one can get back in more. We'll come back to this. Why don't we go over to our expenses? Yes. Okay. I I was just going to say at the at the bottom of that page, um, the the
the pipeline hazardous material safety administration that is Yes. Um, I I got an answer on the $1.5 million. So, this was something that FGU um went after the group. The grant was
released approximately June. Um, FGU is going to hold on to those funds. And what they do is they they hold the funds, they send a bill, we pay that back with a 10% interest. It's kind of like a a grant loan through them. But that that's what the $1.5 million is
right there. And that's to rebuild regular stations, correct? City floor. So mayor about that. So where does the 10% interest come from? That's what I was.
Yeah. Where does that 10% interest? Do we have that over here in the should I saw something? I think they did that. Yeah. Interest debt service. It looks like that's the 5%. That's the 5% on the
steel gas. Um I'm wondering if that's where interest expense FGU gas line of credit if that's where it needs to go where it's been zeroed out. So if that's where it's going to have to go, we're going to have to talk to Dave about that because that seems like that would be the line for
that because it's going to FGU. So we're going to have to put that into our expenses. Which line item are you on, ma'am? You're on line 62. Okay. But there's What on earth was it? What did they have the money? There's Isn't
there something else besides the PH MSA grant? Well, they were doing it for the DOT. The DOT for the treatment. Well, no, for the four lane from Dun Creek Bridge to Santa when we moved the
gas line, they were loaning us money and then FD was paying back that and the interest, right? They're also doing it for I think for this coming year they're doing it for we just approved them doing that. I think it's for the tree clearing for the safety, right? They were going to be
paying them something back for that. They're charging us interest on on that, right? It's a good rate. $5,000, right? It's a good rate, but that has to be reflected somewhere. I mean, that's the best rate we could get.
Um are we moving on to expenditures under personnel services? Um mayor I have one more question in this general area. Um so on line 64 which is right there what we were talking about the bond interest
that we pay. Wait a minute. Are we done with that? Are there zeros in there for the bond interest? Yes. Okay. So, what did we pay on? It looks like where it says interest,
the debt service on 61, looks like that should probably be down like where bond interest is. Oh, yeah. Something got moved because on my I'm looking at the new copy, I think. Yeah, on my prior copy.
So, we haven't we haven't paid off 64. No, no, no. Okay. So my question was what is the outstanding um balance? So bond interest last year was line 62 and it was the unodudited. We didn't
have anything for 2024 nor did we have anything for 2025. Yeah. It jumped to interest. I remember talking about this last year. Wasn't there a reason why you
when we did it? Keeping you on your toes first thing in the morning. I'm telling you, someone's got to keep me on the toes. Thank you for so much for just dropping everything and helping us with this.
You have questions about break down. Unless I print them individually on reports, then it's not going to break down. On these two reports, it breaks down to the individual um totals, just the totals for like
inside the city limits of Pona Park, inside the city limits of WA because they have the same rates that we do and inside the city limits of Crescent City would all be separate totals. Um commercial is we have non-t taxable and
taxable. Your non-t taxable is going to be your schools, your churches, and things of that nature. Um and rest taxable would be your restaurants and stuff like that. And so can you tell us what we build out for the last month in each one of those
categories? Because like on the budget, we have a line item for gas sales, residential, and that's everywhere apparently, and then gas sales taxable for commercial, and the non-t taxable commercial. That's those are the three lines, and we're just trying to estimate through the end of the year how much
revenue we're going to get in. So, we want the totals because I have a report that does that. Yeah. What you got there? Once or two. You can just read it out to us. You don't have to give it to us. Well, I was going to make copies for both, but they didn't understand.
So, here you have your gas residential. Here's your That's why I asked everybody and that was for June, correct? That was for July or June? June. June. So, that was June. So, we're at 27,17563.
That includes the minimum charge in there, too. includes add that's an additional 81 possibly 81,000. You don't have to add the totals. 526 and I can do that if you want.
So this different cycles to create a different rate, right? So it does have to do. Yeah. So at an estimation on that, we're probably it might be closer to 460 460 right
cities. Yes. I think it's like five cents difference or six cents difference. But that's the total correct for everybody. This is the total for
you have to add the rest of them too. If you wanted a full total say it's depending on exactly how you want it down. We just want the full We just want the full res all res [Music]
plus 820. 20 doing this. So 820 and then 156. Okay. That's commercial. 37. So that's okay. Okay.
So that's it. So we're at 32,34685 for That was June. That was June's number for what? For gas resial. For gas res. So we just assume for next month. So that's 97. So that would be about
97,000 um 40 55 um plus where we are currently. So that's 483,14855 and we already believe don't you said didn't you say Dave that July seemed to
come in lower this is July just a hair just a hair that's 2000 oh you got July the only reason why July and August changes because the schools are closed they're not working on gas that's really
changes the system itself and join your numbers to include the the 16 the $20. That's the building total. Okay, cool. That's there, not the usage total. However, the usage is shown on there as well. Thank you. That actually helps.
We sell more gaslight. I have several restaurants. Thank you. So, mayor, after the meeting, can everybody have the highlighted sheets that Jo? Yeah. Where's the rest of where's the rest of July?
on that. So that came in at 30,35204 for July, which is right almost $2,000 less than than June. So I think if we use that 30,352
or 30, 350, right? Um number. Okay. So where's that correction exactly? We're looking at residential sales. Yeah. So then let's look at let's just look at
so when we go to commercial. So here we are with commercial. This is a non- tax. Yeah. [Music] There's the second line down. [Music] Um, so here we go. So, so that's
taxable. Gas sales commercial, that's taxable. [Music] commercial [Music] and that's not so that's 11,749
1174927 um [Music] 35,000 35 5,000 247 * 35, right? 35,000.
So then let's look at our non our non- taxable here. July you have July. [Music] Okay. That's pretty small number, right?
A lot of churches churches and right now school's out. I mean, school's back in now. So, right. So all their cooking and they do it's back on. I believe the gas back on at the high school.
Oh yeah. Construction. It was crazy things going on up there. Well, some of the contractors, you know, it's like they run everything. It's amazing. Well, there's a lot of temporary
infrastructure hanging from walls and here and there. That's kind of a shortfall in 2024. Why is that so different from what was they don't like us anymore?
Find out how many customers we had in 23 versus 24. Okay. Thank you. They were saying the possible decline the revenues in 24 was people left gas and went to electric. Yeah. Because I mean our profit margin is the same. But if if a customer sells
their house and it stays empty, there's nobody burning gas. There's a heater there, but they're just not using gas or they pull out an old trailer from the 70s. Most trailer companies do not offer gas anymore. It's electric only on trailers. So, they're not going to fight
them. they're going to go all electric. So, but the power lobbyists have deep deep pockets and they're spreading their money. So, okay, ours deep. So, mayor, could I ask a question while we're calculating your calculating?
Thank you. Um, my my question was that was one of my that I had here. There's wonderful data on your page two of the gas department information, but that was exactly my question. and it says we have 1300 active customers. So, um I was
wanting to know is that a change up or down from the prior year? It's averaging about the same. I mean, we gain five, we lose two. I mean, and and a lot of that data that you get where we lost customers, we lost them over 10 years
ago, but the public service commission says after 10 years, you have to abandon the service actually terminated. So, then we lost this customer. That's why I say 1300 active, but we actually have like 1425, but at least a hundred of them are up to be killed.
Well, and to me, I think it's right to say just the active because we're budgeting. Yes, it's about the same, right? So, we don't think it's necessary to go back and get the number like the city manager was saying, how many
activives did we have in um 2023 or 24, but you're saying about the same? Yes, within 10 within only 10 that changed. This year we put in 14 services. Last year we put in 12, but the year before we put in 32. So,
but the the active stays about the same. And Josen's billing report shows that it varies maybe three customers to a year up and down. And that's because they're there, but they're off final. Little Snowbird comes in in winter. Okay. It's active now, but the the service is
there. It's just not active. Sure. And like you're saying, the seasonal really um makes it hard to pin that down. Especially right now. Now, come about November, we'll probably be at our highest point per month as far as active
customers, and it'll vary. And then come spring, it'll start to drop off. What's this the spread? Like, how many more customers do we have active during the winter months than we do now? Maybe 25. That's the same with water.
Yeah. you know, um, something else, and I I found this out this past week, and we're constantly, you know, with with Dave telling him, you know, we need to add more customers. We need to add more customers. Um, I there's there's a house
being built right on the outskirts of town and had dinner with them. And they also have they're also rehabbing Melissa's house. They bought that house. Um, and they have a guest house. So, they have three houses that they want to
put gas to that do not have gas. They're right on the outskirts of town. Can't get it. Well, I can get I did I did get your numbers and she sent her she sent the email. It would cost just to run the line with no labor included
was $19,000 just to run the line to the driveway to the driveway. And so that's where we are running into a big issue. Sure. I mean that's right on the outskirts of town and and there's no markup on any of that
cost. That's the exact cost markup. And most of that is from the directional board company which we've lost another one. I just got another bid from another board company. We were charging 250 for a customer to get up underneath the road. They want $560 now to go from one
side of road to another. Wow. And and they were going to do they were they do stove, water. I mean, she does they do everything gas and generator. Sure. So, they wanted all three houses to have that. And and it's just you would be looking at at least
at least 10 years to break. If we said we were going to do it all oursel, not charge them other than the driveway, it' be at least 10 years and make money off of it. Now, on the other side, right behind them, that um what is that road? Oh, no. Pipe
pipe road. Well, they estimated from that and it would be more expensive. They have it down there. They have it down there. One observation I have. Thank you very much. Um, while you're on that point of some
locations are basically inaccessible for serving new customers unless they're willing to pay a very exorbitant fee. Um, we have lots in Crescent City. Crescent City is down in population from what it
used to be. We have vacant lots that are served by water and sewer. And I have felt for some time that it would be important not just to market our gas service because that's not economically feasible everywhere unless there's
subdivision, but it would make sense to market in town Crescent City as a good place to buy a lot that has utilities because there's much higher likelihood if someone buys a lot in town and
they're just there are a lot of vacant lots with driveways and sidewalks under their house. Much more likely that those people will become a gas customer and that would help us that would help us in two ways. They would help pay for everything else um that we provided
services and gas. So, so just a um reminder that we also can market our home sites in town. Well, in Crescent City, too, probably 90% of the streets in Crescent City have a gas man on them. Now, they may be on the other side of the street, which
therefore is that $560 charge. But if they have a neighbor next door to them, maybe we can come off of that. But that's really the the target area Crescent City needs to look at is the areas where we already have infrastructure work on those and
preferably not Lake Crescent Estates because it's underwater. It's just a nightmare. Dun Creek isn't much better, but water is it's a major problem. But Crescent City, it's high in the grass sand here. But yeah, um but you want your customers and about
what you can do, but it's just harder to get in the ground. Well, I mean, gas was originally provided in town because you had a house close together. Sure. So, there you go. But the thing is, let's go let's go let's go back to this because
let's go back to our budget if we can. Let's go. Um, so we're so now we're at non- tax residents and it looks like from this guesstimate um of where we are currently, you probably may be right in that 470 475 range.
Okay. Commission, how do you feel about that? That would add probably um if he was to go to 475 just to be conservative. Sure. You've been crunching the numbers and you feel good about I've got 477 158 but that's
So I think if we go to 475 Okay. And you're saying that would be where what line would you plug that into? That would be on line nine. Okay. I've notated that. We'll take care of that. Non- tax. So we want that for
non- tax res. Okay. And then that's going to take us So, um, so that leaves more like a $50,000 negative.
Yeah, that's an $18,000 $474 difference. Okay. So, um, so if you take 70 874US 18 474, so that's
Hold on. I messed that up. I a 52,400 is the ne the new negative. Okay. But if we say it's improved by 18474,
the negative net position on very does change by that. It will change by that. Yes. Wait, it will change. Wait, I thought it would change by it would change by 1847. It would. Okay. Yeah. But that still leaves So that still
leaves quite a bit of negatively. So then if we go to the next one, we go to our commercial and we've got that at 146796 and I'm estimating 14968. Um,
and we put 150 in there. Well, no, I'm estimating 140. So that's just on the estimate. So what does everyone feel as far as where that's concerned with our commercial? because I'm showing a commercial could
be a possible 35,247 more than what we currently have. Um, so you want to increase that from we're talking about line 11 where currently it says 146796
and you want to increase that. I think we we might either keep it the same or decrease it because I've come up with 14968. Okay, that's your new estimate. I would keep it the same. You mentioned the 30,000 something in there.
35,247 is what we're projecting in revenue. Okay. Okay. I see what you mean. Yeah. Projected in revenue. So we want to keep it the same. Um we came in at 135833 last year. Um we
did. So I I they can that's up to the commission. Leave that part. I would leave it the same. Okay. So then when we come into our non our non-t taxable, we're at 64,422. I'm estimating possibly 68,672.
So the schools have um have come back in. I don't know because we going to have probably a net loss. We're probably going to have a loss in the commercial that we're not changing and we might have an increase there. Right now we're four $4,000 a little over 4,000 over
what we've projected. So, do we want to keep that the same just in case or do you want to go up to um last year I mean even in 2023 we came in at 50,590 um
2024 43,676 and we're at 56 now and I did that estimate with that you're talking about $4,000 correct but I would say if if It's within less
than $5,000. We should just leave it the same because we're just I think so, too. Yeah, we're just estimating. And what's next? You know, it's tight budget. Is the high school going to be on generators or are they going to be connected to the gas
for their heat when they finish those buildings? That's a big I'm sure that's a lot of income coming from them. The only thing that runs heat and all that, the generator is only the cafeteria, cafeteria, and the main boiler. Do you think that's going to have an impact on this budget with them being down? Okay.
The new school is coming in. When when did when does all that get turned on? That's gas. All the new school. No, none of it. It's all electric because the school now is all electric. The only thing that's gas is the cafeteria, the boiler room, and the backup generators. That's all it's
ever What about the elementary school? The new elementary school is pretty much going to be kitchen only. Kitchen only. Okay. And that's going to come online in the fall of 2026. So it's right at the right towards the very end of our budget. Okay.
Yeah. Because that school, this elementary school now is kitchen only. So there will be kitchen only. They may have more appliances. I have a bigger generator. So they could use more gas. But as far as the school itself, it's all electric. Okay. So Dave, let me just I just want
to ask you I just want to ask you one a question. Um where we came in and and you might have already answered it when I was doing my my equations. The churches and schools for the non-t taxable commercial, we
came in much lower in 2024 at 43,676. Which line you at? That's on line um 12. 12. Okay. When you look at we had budgeted 58,000 because the year prior we'd come in at 50,690.
What do you think was that? I mean that's churches and and that's your nonprofits and I mean churches and schools. Most of the churches was all it's either heat or it's cook stoves. Okay. Most churches aren't doing breakfast anymore. So that's
where I went, you know, church doing breakfast anymore. your heat. It just depends on how cold it is. And does the cold fall on a Sunday? If cold falls on a Wednesday, they're not going to have the heat run. But come Sunday, we got to keep everybody warm and views there. So, I'm so proud of myself. That was just
what I said. You never know when the cold front ever come to be because most places they're really tight with their thermostats. They will turn them off, which I've told them. I said, "If you're concerned about your bill, turn the thermostats off." But yeah, but you know, they come in the day before, Saturday night, turn the heaters
on, so they'll be warm come Sunday morning. But um but a lot of functions in their kitchens, yeah, they're not having those functions anymore. So they're not using any gas. That's true. They're not having that Wednesday night dinners and all of those that they used to have. Okay.
Okay. Thank you. Sure. So we're going on to the next to the next page. Um, oh Dave, another question we had down here with the grants. Okay. The the 1.5.
We What happened with the one? Remember last year that was the 7.3. We haven't received that. We haven't received that. Well, we haven't we haven't been awarded. We I was going to say we haven't been awarded. I didn't think we haven't. The 1.5 we've been awarded. We don't have the money. the money's been
released, but I don't think we ever are going to have that in our pocket. That's going to go through FGU. So, when they bill us, say, on a $50,000 increments, they supply the money, we send it back to them, but we have to pay them interest on that because they're holding
that line of credit for us, especially when it comes to the 7.5 million. Yeah. You know, that's all going to be on their credit. So, that interest, where are we getting that interest? That all comes from the grant. So we So it doesn't cost us anything. It all comes from the grant. So the So it's generated that just
doesn't if it seems odd that if it's 1.5 and then you pay interest on that that it's all part of the grant, you know, it's all So they pull it out of the grant. So it's not a full 1.5. So they're going to pull that interest out of that grant. Exactly. Along with the engineering,
there's so many line items that get pulled out. It's like, okay, I got a$125 left by the time everybody does all the We didn't put the seven. We didn't put the 7.3. We didn't put it in this year. So, you don't think that? That's still on the wish list.
Any more questions on that page? There was also a note that we added last night. They let me know about it. It's the one above that for the gas line relocation. If you could just quick explanation for that. That was the $40,000 hold from the state. That was the fourlane project from Satsuma to Dun
Creek that was completed back in that was either December of 22 or January of 22. The project is complete. DOT put it on the side burner. That job was supposed to start 2024. They kicked it back to like 2027, 2028 now.
But when DOT sets a project, designs it, and you do your designing, you build it, they have time to go, hm, maybe we can make this better. and they messed things up and they're already talking about that in the curve in Satsuma because there's no bottom there. It's just a
muck pit. They've never hit bottom there. So, they're redesigning that. So, it's probably going to conflict us. So, they put 40,000 aside. So, if we have to move our brand new gas main money is there so DOT will have to pay for any changes to that. Okay.
And I have not seen any final plans. Last I heard they're talking about doing a low clearance bridge there like track source Pete out there in 100. There's a low bridge there because there's no bottom. And um what they proposed was
even from not my standpoint was a joke and they told me I didn't know what I was talking about but two years later it's like we can't do that. Oh I see. So they're changing their minds. Okay. Any other questions on page one? Um I think I did have it that um the
interest debt service issue. We still were paying interest on bond, right? That's on another page. That's Oh, what page? I'm on page one. Okay. I thought we were talking about Let's go back to page one if we can. Everybody on page one
and then we're going to go to um page two. Do we have any questions on page two? Um yes. Have one question. So, um, this good information Dave said calculated out that we have we average 325
customers per employee. We have five employees. Um, where does that put us? Do you have any idea like how we compare to other gas utilities? Gas utilities like us, right? They they may have three, but the only
problem is they will be like the size of Crescent City. Yes. We're spread out. We've got, you know, like 134 miles of main and services. So, we're spread out so far. Do the PSC will not let us go under four employees. That doesn't count me sitting
in the office, but actually in the field, you cannot go below four employees or they won't do a violation on us because we're so spread out, right? So, they're always on about that. So, well, I was assuming that we did a lot with few employees. And you're saying
it's not just you don't just rate it by average number of customers per employees, but is an actual PSC standard for how many miles you're coming. Well, just how spread out you are is that's the issue. I mean, knowing the amount of customers, yes, you may need more if you really like Palaca. They
have like 5,000 customers just in Palaca. So, here we are with 1300, but we're spread out, right? So that's what they're concerned about and that's mostly if you have a major gas leak or a cut line. How fast can you get there employees through the system?
So I know how long it takes me to get you know wherever it is. Okay. That was all I have for that page. Thank you. Okay. Does anybody else have anything on two? If not, let's move on to three. Okay. said we're at three3.
[Music] Um I had a question about line 33. Okay. So we budgeted $42,000 for life and health insurance, but it shows year to date June we've
only paid 7,278 of that. Um, is that normal? Do do we pay it at the end of the year? It's paid that quarterly. It's paid quarterly because that's
it's just not allocated properly. And then we're we're budgeting the same for this year as we did um for last year. So, we're we're thinking life and health will stay the same. Actually, um
Sheila, I think just got some quotes in for what we have for our health insurance and she shared with me that it's actually looks like it's gone down that it's possibly gone down for this year. Um, yeah, we're waiting on a couple quotes
and then she's going to put together a little spreadsheet so we can see. Yeah. And that's why we put on here waiting on you quote. We will be updating these numbers based on on the numbers we we receive. And I I find it odd because last year, if you look the year prior in
2023, we paid 38,220 and then last year 11,134. What happened? And and that's something when we were going through these numbers, we saw Steve's been digging into finding out what the issue is with that. And so we we'll definitely have an answer to that. That's a question that
we we posed ourselves as well separately. We take the number and then allocate it to each department. Correct. But we need to make sure the Christmas bonus. Why is it that we
have budgeted for everyone to get Christmas bonus? No one got one. I saw that too. I had that online as well. That's another allocation issue because we did get Christmas bonuses. You didn't? It's not build out of your
bonuses. Well, I have a question too on the on the health insurance. Okay, I'm on Medicare. It's cheaper for y'all to pay my Medicare than to pay for my insurance. So, when I leave, if an employee takes my place, if it go back to five, is that going to mess up your
health insurance line or be a drastic amount, but there will be some change. Well, it's probably gonna it's gonna mess that up, but your Medicare line that Medicare line will probably kind of remain the same. It it'll probably be kind of a wash
between the two. Hopefully, it should it should be a wash, but thank you for bringing that to our attention. Well, my how is it a wash if Medicare is cheaper for us than Well, it won't be a wash conventional,
but hopefully if it goes down, if our insurance goes down, it won't be so much, right? Won't be that big of a shock. Um, it won't be an equal wash, but it'll be it'll be it should be closed. Um when
you have in here I just let's go back up to our salaries and um where we have in here. What do you have in there as a five what do you have as far as an increase? It looks like we have a 5% increase compared to the
amended budget in 2025. Um, we also, um, have an area down further where, um, well, we'll get to that, but to paint the picture, Dave is most likely retiring in the spring next year. Hopefully, I can talk to stay a little
longer. Um, but we need to be cognizant of that of that pay for that individual. Um, we we have gold here and um, whoever comes in, we need to be competitive as well. Um, we've also, as we work in this budget, have worked in a line item for
consulting services in hopes that if we do find an individual, Dave will also be able to come back and help bridge that divide until that person is up to speed. Um, so we did include a little bit more funds in here for the executive salaries, which would cover um, uh,
Dave's position as well. Um, there was a a small increase or decrease in the staff salaries. we basically maintain the the same and I believe we just had that down when we were trying to um balance out originally when we were first working through our numbers.
That's why that there's a little delta there. But wait a minute, mayor, I have a question. So there's not if we're keeping the executive salary almost the same with just a slight difference and we're keeping staff salaries the same.
When Miss Hall on FGU made her presentation, didn't she have a page that showed we would need to pay significantly more for both the um director and the staff to be competitive
because according to that presentation, everybody's retiring within the next year. Did I get that right? Yes, ma'am. Okay. So, not everybody. Not everybody. Just two. we have right day and possibly
too. Now, with that being said, um we do have somebody that we believe I believe you can speak to that and someone that we hire that has background that Dave can bring up to speed inhouse versus outside Duke. He's worked here
before. He worked here about 10 years ago. I mean, to me, he's our only option for me to train because Logan Logan's Logan. Logan's a big kid. I like this is all recorded. Okay.
You know, Dave, um, you've got what, four months or so to start training this gentleman till March. Well, I'll be here probably till March, late March, so I'll have time. But there's a lot of things that I, you know, you're just going to have to it's
going to have to happen for you to really understand what's going on. Which already come through a couple things already, but Brandon, he he's a single father. He lives with his parents. His parents were wanting to move. So when he leaves, they leave, he goes with them.
JT's health is not good. He's going to have open heart surgery here in two weeks. So we don't know what his outcome may be. So it only it only leaves Mike. So he can be trained in the meantime to go over things. If the public service
commission comes in and says, "No, he doesn't have enough training. We have to have somebody more qualified." And how do they determine whether or not he has enough training? Based off courses that he would take, how many years experience? Um, but the
other other route we could take is Katie could possibly apply somebody that maybe comes in once a week, oversees what's going on or if there's forms that need to be filled out, can assist in that. How much we'd have to pay them. I don't know.
They wouldn't be an employee. That mean like with the budget and everything, we'll get people to come in and assist y'all on the side and everything. Possibly something like that. Um, there's schools that Mike could go to to get training, everything because we used
to have a gas school we send all our guys to. I went there at Sanford. We went there all the time. We got all of our training and everything. Gas industry changed. They did away with the school. Well, now I hear the land natural gas has just built a new school there, but it's for the only employees
right now, but they're possibly going to open that up to other gas systems. So, you know, you're 30 miles down the road. those guys need to go down there for a week of training and all that. It's it's great. That's great experience. But,
you know, it depends also too how in depth y'all want my position to be. I mean, management, I learned the hard way. It just happens. But, as far as financials and all these questions you're asking about the non-t taxable, this I know the basics, but the fine
lines. I'm not a finance director. This guy is JSON. That's her job. But my job is to keep the gas flowing, keep track of the money, understand the system. Yes. Yes. I mean, because we have a big system. There's a lot of stuff out there.
I will say this. I've reviewed uh some of the documentation and Dave has done a wonderful job in making sure that there are um SOPs set in place for people, making sure that there's policies and procedures for every action out in the
field. I I feel 100% that if Dave were to put trust in Dimitu um and got him trained up that there would be enough information there for him to take it and run with it. Um one of the line items that I did put in here that was a zero for the last few years was employee
incentives. I put $1,000 in there. Um that's not $1,000 one single payout, but it's separate pay for certifications and associations. Whoever gets in that spot, we could incentivize to say, "Hey, if you go get a certification, we'll give you a 200 bucks extra on your paycheck."
You know, something to that effect. Mayor, could I ask a question? Yes. When you say that spot, are we talking about Dave's director position? Yes, ma'am. Okay. So, you're saying that um the person we would be potentially looking
at for Dave's replacement would be a current employee named Mike Yes, ma'am. Okay. That was not clear, but potentially we would still need three or four more employees, right?
Well, when I leave, if Mike takes my place, yes, that opens up a position in the field. Of course, when I say we're going to cross train, he can still work in the field, kind of go back and forth. If JT does not come back, that's going to be an instant open position before I
leave. So, yes, we're back to the same scenario. And if um Brandon, if his parents move, we've got another opening. So, then we're back to square one of employees. Because if Mike's sitting in the chair and going back and forth out
in the field, he has no staff. He has no help. So, well, we can't take that chance either. PSC would PSC would come in and slam the door on us real quick. And so that's this is a hard conversation that I think that I as much as we
I know this is a hard conversation that we probably need to to explore after the budget's over with, but we definitely need to explore and with Katie, you know, what direction what direction is in the best interest of of um of the
city where it comes to where it comes to comes to this. And I believe that FGU also said that they would be able to help to find those employees as well. Is that correct, Dave? Well, they can. And it's like Commissioner Dvito said, well, that it's more expense. Sure, it's more expense because you're going to have to pay a
higher level to have someone come in that's trained, but Tom has a scenario all set up. The gas department can make more money if we stick to a straight formula across the board. Yes, the customers are going to have to pay more.
That's a fact of life. We go to the grocery store, we got to pay more. Yeah. I mean, that's just the way it is. I'm a gas customer. Well, my other house is a gas customer, but I know how it is. But if we want to keep the gas department, there's no ifs, ands, or buts. We have
to face the reality of those charges and upcharges. They're going to be there. Otherwise, we have to take reality, too. And um it may be a different route, but there may be a route in between that too. Partial
health, certified partial help. But Katie is your she's your angel there. Katie Katie Katie because our system is major to us, but to her it's nothing. It's it's a drop in the bucket compared to the systems they deal
with. Ma'am, could I just make an observation here? Yes. Um Katie gave us a scenario of staff replacement to deal with the retirement and everyone else leaving. Um
I have a lot of concerns. I think if we're talking about total staff turnover, um even if Dave says he's not the budget person, I'm very concerned that we promoted a fairly new employee who doesn't have a lot of certifications
to replace our existing director who understands the regulatory framework, the the PSC rules backward and forward. To me, with this much turnover, we need to replace our director with someone with some significant experience,
including in hiring and training. Well, that's that's that's easier said than done. Number, but well, Katie gave us Katie Hall from FGU. She gave us a figure and she did say um you know that they could assist
because I asked about the League of Cities new um jobs website which is and she said that they would have better connections but I think we're taking a risk if we don't have
someone experienced come in whether they're on contract or um or an employee. I think we need that to basically reestablish our gas department. And I don't think there's anything wrong um with having this
existing employee be the second in command because you have to plan for eventualities. Well, he could be your your inim your interim. I mean, every manager should have an assistant. Sorry. Yeah. Just for time constraint, I think
we should go back uh our mayor suggested that we talk about this after we get so back on track and get through what we're talking about. It impacts the budget that and we are going to have to and
when that happens, we are going to have to take a harder look at this. Right now though, I do want to bring something I do want I do want to bring something up. Um and and this again is a very it's a it's a very difficult um
but when we're talking right now across the board with where we are financially um everything now it doesn't look like you put a 5% increase in here because you're keeping it the same as where our amended budget was.
Yeah, I noticed that from this last year. So there's not an increase. When you look at line when you look at staff at line 25, you've kept it where it where it was. Actually, you reduce it by $45. Okay.
So that means that we're keeping at this point in time salaries are going to stay for this next year. Um our employees and every year since I've sat here, we've we've given an increase. Um we've got they've gotten an increase either a cost
of living or performance. Um this last year they got a 7% just across the board and if their performance they got a 5%. So this last budget they got most all of them I think got a 12% increase. Okay.
We're we as a commission given where we are and this is a really difficult because we value our employees and we I hope we've shown them that in the last 40 years. This year's a little different and you know, we've got the tax the
taxpayers here and and where we're going to have to do what we're going to have to do with our um making sure that we can hopefully come down in our millillage from what we set it at. Um that might be something that we're going to have to really look hard at as we as we move forward through this budget
process that um possibly this year. I mean, I know for years the state, you know, unfortunately the state there was there was no increases, no cost of living, meant nothing from a state standpoint. We've also got Doge that's going to be in here looking um at
everything and and and that's and that's that's a good thing because it does it does show us, you know, are is there waste? Do we have waste? Um we have fiduciary responsibility to our citizens. But um I just think that as we go forward, so it doesn't look like
you've added it in here, but it's it's added other in other departments. This particular department, we went flat on the staff salaries only because of the known issues that we're going to have in the springtime next year of losing Dave and adding uh around
I believe 30 or 40,000. We have to get into the budget again. Um but we added at least $30,000 in for consulting fees. Yeah. 35,000 you put in there was 35,000. So to balance it out, we we did carry over what we had um previously budget
and amended budget which does include the increase from from last year. And I'm not even sure where the Christmas bonus is. So in the past, what have we done, Steve? 100. Yeah. 100 spent for the Christmas bonuses. Correct. And on this one, it was thinking too if it's flat, we're going to give them a little bit more. You
know, these guys are in the field doing hard work. I don't know when we have done that. Yes ma'am. Um but mayor just one observation. Okay. So to keep the gas department it seems to me that the standard for um expertise
that you need um for your utility funds that we have we have to pay the industry standard. I mean Katie said she didn't she didn't think that we'd be competitive and she showed an increase. So, at some point, um it seems like
we're going to have to show that. And to me, um it doesn't seem like it makes sense since it's an enterprise fund to use the same, you know, five whatever 5% standard. We need to gear it toward
being competitive in that particular industry. But we we're not there yet. Okay. I'm not there yet. And then pension. You'll notice as you go through these um everybody our pensions like where was that jump? If you'll remember when we didn't go with
the FRS we compensated employees through that up to that 8%. Um and so that's why you have a jump in our pension in our pension cost because you'll see throughout there's a significant jump there. And explain to me why you didn't change
over to the employees. I guess my understanding was when they were looking at that is that the employees so many of our employees are are retiring out retiring out and it was not
beneficial to them to go over to the FRS. That's something I think that as we get new employees in that we really should consider because that to me is a big bonus a benefit because if they were to move on to another agency with that
FRS they can carry that with them. Yeah, I think that's a real big deal too. But at the time at the time that was the concern is because um we have you know you've got Dave you've got Keith you've got
a lot of JT a lot at the time all of them to switch over was not beneficial. Yeah. But most companies, especially with new people coming in, give you an option at this point. You stay with the old one like like I did, right?
Because I had too many ears in or the new people coming in changed over to the different uh pension and that's something that we really need to discuss. I mentioned that to the city manager to look into if we can do a a
if we can have a a both. Yeah. If we can offer if we can offer both and if if we can that that would be that would be advantageous I think and and possibly um you know a big bonus for people looking to come to the city. I think I remember Charles Rug saying that
it wasn't possible to goart us because they wouldn't take us unless everyone went and they couldn't accommodate our senior management. It's worth having the discussion again though. it really is worth having
and just looking into it. um never give up. And then a lot I don't know I don't know what the breakdown is but in in the Florida retirement system which is state and county and some
municipalities um the employees now have the option to have defined benefit or to have the um defined contribution that's portable and so I don't know how that would affect us. we could I don't either, but I think that's a that's
worth exploring again, especially as we get new employees. Um, okay. So, we have any other questions on page three of five? Okay, then let's move on to five.
What's nothing? Um, you ready to start? Operational expenses at the top. I I had this highlighted trying to figure out where this came from and what that $175 charge was. Dave had kind of an idea of what it could have been, but then we kind of ruled that out. Um what's other
postmploy benefits? It's every year we get audited on that and that probably should have been down in the audit under audit expenses. Okay. So that's where that came from. Okay. Yeah. Because it wasn't in last year. So it was I don't know where it came from. Yeah, that's what that is though.
Okay. Dave, can you explain how the Sunshine State call thing works? Well, I mean, everybody in the any kind of utility, whatever, has to be a member of it. You want to dig in your yard, you call 811, they call us, we respond out there.
They charge us, they take all the calls they have for a year within the state and they divide it up by how many companies are in it and how many calls you have determines what they charge you per call. So then you get a monthly bill, but that system you have to go in
there and highlight where utilities are. If you put in a big new development and you don't highlight that in there, they're not going to get locates in that area. But you know, it's fantastic. You need it. A lot of people never use it. They just go out there and dig anyway,
cut your lines, scream and cut that one and call that you come out and you come out and relocate all of it or just the gas gas only because comes out and does the water or do Yeah, most of the groups want us to do
our gas. I said no, we're not going to accept that liability because you get some new guy and if he doesn't have a current sheet on maps, he's not even going to know it's there. So, we do our own little But it's like I tell them, if you don't call 811, you're going to end up calling
911 because you're going to have problems. But I just have little kids next door that take the little flags and throw them off in the yard. So that doesn't help. Um I guess the more building that you have, the
more 811 calls you're going to have. We have uh a couple things that are going to be coming up in this next year. uh new commercial um and residential of course. Um so people will be calling in um for that. So we added $2,000. I know on the expense side we may be a little
bit higher. We could reduce it a little bit. Um but we are going to anticipate growth with new projects and there will be more calls. Well, it's like when the highway light widening finally does start, those locates are non-ending. They'll go the length of the project. So they may go
two years. So you're constantly every 30 days that locate has to be updated by the law. So they legally have to go out there, repaint it, restripe it, and some of those jobs have to be done every day because the trucks and equipment are just wiping the marks out. So you have
to relocate every day. So you spend a lot on paint and don't let them out on purpose because it's a huge fine. I think you can go to jail. You can, especially if it's a high priority, like a high priority phone or gas, somebody.
So, if we drop down to line 44, let's go down to line 44, auto property, general insurance. Last year, and in 2024, we it was 56,101. We budgeted 55,000. Looks like 32,000
um has already been expended and now we're dropping it to 22,000. Yes. The reason that that's dropped significantly is that also includes the savings that we are getting uh with the new um brown to ground quote that we received. Um and the other difference is
is that we have an allocation spreadsheet that was utilized this year to try to fine-tune that. It wasn't utilized the years prior. Um but I went with Steve. We looked at that. We feel very confident that that number is solved. Well, I I I I obviously
something was was allocated correctly because it was 55,500 and it was 56,100 is what was actually the unodudited for 2024. So that's only a $600 difference. So it came in pretty close. I'm concerned with this 22,000.
I know you said you've gotten a savings, but we talked about this last night to make sure that everything is apples to apples and it's the exact same exact policy. Before we move forward with any of that, they're going to come and do a presentation for you all and explain
every line item in there. that we were and I confirmed given a quote that was apples to apples to what we have currently what we have currently we had to provide them before we even got a quote so they could get in and figure out exactly what was we were getting covered so
so you were saying it looked like about a $60,000 savings where right now you're that's about 32,000 of that correct and that doesn't leave much more the reason that that's there is because it's it's tying back what the cost is
now compared to 2025 adopted budget. But in the $56,000, I can't speak to the allocation of that in that year. That would be Steve. He can probably talk to that. I don't know if if uh if funds got in there from something else and was paid out. I can't talk to that. I can
only speak to what the cost is going to be based on that allocation spreadsheet and how it was um you know, utilized through all of the funds and and spread. And we do feel confident that that 22,000 is the number. Um I will also say this um since it was brought up. I did
not know when we received the quote that they were bearing their differences or their delta and the numbers by 2024 versus 25 or today versus their 202425 quote. Meaning that we did receive our general liability quote this year from
ETH and it went up $30,000. So, by going with Brown and Brown, we're actually going to be saving $90,000, not 60. Um, this the savings though, um, you know, is allocated put in the spreadsheet and reviewed through um, what are they going to come after the
presentation? Uh, as soon as I get the healthcare, that's all we're waiting on right now. we provided all the information, but they're also um brokering a healthcare uh deal number right now through a couple of the only reason is because we're in budget right now and so we need to know
we need to know that this is that this is something we're going to go with otherwise we're going to have to um accommodate that $90,000 back into or that 60 90,000 back into this budget. My plan is to
have them present uh do a presentation for you all at September 10th meeting that we have or I believe it's the 10th and that that is the date that I've set for them and so they have a deadline. We've and I would say Sheila jumped on it so fast and got everything to them
and we're almost done with the requirements of what they needed. So that's all we're waiting on. Okay. And that's September 10th is the first reading of the budget, right? Okay. So, mayor, I had a question about
line 39 audit. Okay. So, just there's quite a bit of difference between yearto date June actual with what we amended and what we spent in 2023.
It's showing year-to- date actual 4,335. [Music] Um, we budgeted 10,400 and we're budgeting 10,400 again. [Music] He had 5,000 on the on the one that you got over the weekend. Now they changed
it back up to 10,000, right? Um, I'm looking at the new one and where they were in um because where they were in 2024
for their audit was 16,290 at the same time um last year and that's what it came in at 16290 as their audit. un audited for
right and the reason the reason for that that big jump or the 2024 audit was they were they were doing multiple audits at that time I believe it was 20 you would say 2122 or 22 year to year 22 23 23 24
I believe so yeah there was there was multiple years across there maybe yeah I think it was 21 22 then 22 23 okay okay but so my question is right now we're showing year to date June actual we've only paid 4,335 Are we expecting to pay more to pay our
gas department share of the auditors? Correct. Yes, we Okay. Also, if you go down to if you'll go down to line 59, cost allocation general fund. you said unodudited 35,75
for 2024, but actually the year to date for that um was 56,550 and so I don't know what happened what happened there but still it should have been the cost allocation 113
currently we're 56550 and that's across the board to everybody that is mayor and that the adjustments been done so that now is on 13100. So it has been done in July. So So it's So So you're done. So you're good with that. Okay. I just want to make sure and
I'm not sure what happened in 2024. I think that I think there was an adjustment done in 2023 that shouldn't have been done. And then I think Julian was worried about cash flow in 2024. So
So they didn't pay there. So it did no it's been done for this year for this current not for 2024 but for this current. So that looks to me like then if the gas didn't pay their full allocation
that's happened several times. Um correct. Yes I remember that did happen. Yes I talked about it. Okay. We just want to make sure that um and then you've put in here I guess um
you showed that our resale items um have gone up significantly. So you've increased that to 5,500. We're currently at 4342 where we only budgeted a thousand last year. Um, and that's kind of stays in line with
the resale. In 2024, you spent 5809. So, I I put a note on here after talking with Dave on that. So, there is a premium for these parts. Um, the parts that we're talking about here are ones that we purchase, but then we
sell at a at a premium to the customer. Correct. Yes. Okay. That money's brought back but doesn't go back into budget but it goes somewhere but it's paid for and probably 35% on top of that is wonder
side the um interest service part answer um and it says paying 5% interest in yearly payment for 1997 6 in steel gas main highway 17 do we know how much more we owe on that and when it returns
Yeah, I' I've sent um Derek over the spreadsheet goes up to like 20 38 paid off. I thought it was Yeah. 2038. Is there a way we can look into refinancing that or paying that off early?
Well, it wouldn't refinance it because it's obsolete. They're obsolete. Yes. 7,000 a year. Half that main doesn't exist anymore because phase two of the fourlane project got rid of it
from East Black all the way up to We were talking about that with this year whether it's worth continuing to drag that out or if we could look into options well sure it'd be great if we could get a loan I mean another loan just to cover a lower rate
right get rid of it and not be paying interest on top of money But that was my earlier question. What what is the principal amount that we owe? I I don't have that number. I believe I believe it was in one of my
city managers recent city manager report and I can go and find that and get that out to you all. But I know we we did report that seems like it would be a lot cheaper to be able to pay off the principal and not have to 1238.
Right. The problem is what you say. It could be 2037. The spreadsheets here at it was 1997 when we took that on loan. So 40 year. So the problem is
how much is the principal and and can it pay off? When I get back to my office, I'll shoot I'll shoot you sent it to me. We have it. I'll send over to Mill and she can shoot out each one of y'all. shows the spreadsheet as far as everything.
Okay. You feel like the natural gas purchase, the 190, we budgeted that last year. Um, right now we're at 153. It'll be within $10,000. Within 10,000. Okay. It could be up around 198, but
So, you think it's going to go higher than it is than it has? Not by much. I mean, it's like I say, a hurricane could change that, but I it's fine. We can stick with that number. Okay. Well, in 2024, an audit is 152, right?
So, okay. Have they started the tree project yet? All done. Do we have all done except for three trees, which I have to give to somebody else to take down as owner or somebody else. I'm going to put that in my report.
I just haven't. So, We have um this green and the red um as we go forward. That dark green makes it hard to see. It's hard to see. So, if you could come up with like a teal or
Yeah. And that was really for us. I should have taken that out, but yeah, I I'll fix that. I'm sorry. highlighting is good, but it it needs to be something light and actually I think you know red. So if you keep it as it is, we still
looking at 26,000 26,900. Okay. that you're going to have to so basically you're saying we're 26,900 short and we have overall budget needs
and um my guess is we're going to have to address some of that after we have the rate study. So, I I do want to point out, we already talked about it one time, but something that we put in here that was not on any of the other budgets for the last few years is the other
charges. We put 35,000 in um for consulting costs. So, you know, that's your biggest addage right there. Um and we'll have to look at the budget and hole and we'll balance it and figure it out. Yeah. I mean, the only thing I see where
you may want any input from me is if we do get to 7 and a half million because that's 28 miles of pipe and that 28 miles of pipes in like 50 different places. It's not just 28 miles of pipe and this that and the other. But I mean,
I've done reports on it. I have a notebook probably 200 pages long of the project. It's already scoped out. It's waiting. But um and as Derek was saying, I send out a
it's a 26 page daily, weekly, monthly, yearly process of what I do in my job and things you have to have by the end of the year, but it's 26 pages long and uh but I have to send y'all new ones because I updated I had formal things.
But they pop up to me in the middle of the night. I'm um I mean that's that's quite a I mean that's quite a big difference especially with us not knowing having a positive on the um insurance
on the on the insurance. Um well one other issue you have too is I'm down a truck. I've put in probably $15,000 on this one truck since we bought it. We bought it used, but I said, "Parker, we're not giving
Shepherd's Garage any more money. It's just it's died. The transmission blew up." So, you're probably looking at $1,500. It's a 2006 and the money's tight and all of that. When I leave, my truck's going to be there for the driving. But if we start
getting employees, they have to ride two by two or single trucks. Riding together, there's nothing wrong with that. They're training. But if something happens one end of the system versus the other and you got one truck. Yeah. What are you gonna do? You know, you got
to split up. We talked about it. I know that's another issue another time. I'm just saying, but that's something for us to keep in mind that as we go forward that we're the truck. Okay. My trucks get driven. But well, the
worst would be the meteor reader truck. interior truck. Constant mileage every day. Constant. But other than that, it's the gas department trucks. Okay. Well, y'all got a job ahead of you to try to figure that out how we're gonna how we're going to do that.
Yeah. With that, if it's okay with everyone, I'm going to take a recess. Are we done with And we're going to move on to which one are we moving on? Water. To water. Yes. That's not solid waste next.
Can we get solid waste out the way? Sure. This was under waste water. Correct. Took it out. No, wait. So, solid waste we we um we decided to just create its own separate spreadsheet
and fund. It was originally in with um with water. Um these are basically um the fees um and the charges that we have had. Um I believe we've looked back at the garbage contract as well and um and have that
base contract. We received a letter on July 1st, 2025 for that and so we put in the number 166. Um, he's not provided us with a copy of that letter. Um, so if you want to explain that
letter to everyone and please bring your microphone down so people can Sorry. That's okay. We did receive a letter from our uh garbage contract and um waste pro and based on fees for their new contract. I will provide you all with that letter. It was just received I
believe last week was it I believe July 31st. July 31st I believe so. Okay. I know I gave it to Steve and and we updated it based on that that letter. So I will get that to you all. Um [Music]
yes, it was just a letter just explaining the rate increase. Okay. Well, they are doing a rate increase. Yes. Wait a minute. Wait a minute. We have to pass ordinance for that. Well, do we have to pass the ordinance for the rate? Yes. Yes, we I know
for the rate increase. So, that's going to have to be a discussion that we're going to have to have because Yes, we do. that's going to be more that the residents are going to take on and we probably need to get that advertised as soon as possible because it might be that the residents they
might say let's do away with the Thursday I mean we've talked about this before talked about this and if we do away with the Thursday because depending on what that rate increase and just to get from waste pro what the difference would be if we were to do away with it with the Thursday as a
savings for you know the residents. Um I know a lot of residents like that Thursday pickup. Um I seldom know I have much, but I guess waste pro can also tell us. Um they can tell us, they know pretty much the difference from the Monday pickup to
the Thursday pickup. Couple things before we hop to Thursday issue. Um normally the letter from waste pro is distributed to the commission. Secondly we it has to be verified that the formula they used for their increase
has to comply with the contract because there's a figure in the contract and I know commissioner commissioner lawy is very familiar with the contract and the figure and one year they did not do it correctly. So, and also as has been pointed out, yes, we have to set our
fees by um ordinance. So, letters like that really should come to the commission immediately um so we can get all that in motion. But the the other thing is um it's my understanding that the county's
recycling discontinues at the end of the fiscal year. October first and um I was just looking the other day at the difference in volume that and what we put out by that curve. There's going to be a considerable difference in volume as to
what goes into the trash cans versus when they quit recycling. there there's got to be a lot more money. Steve's gonna go ahead and he's grabbing a letter right now. Um, and I'll be honest with you, commission, I was unaware that it needed to come in front of you all, but as soon as I did find out, it is uh going to be on their
September uh agenda. It needs to that needs to be brought to the committee. And it it is on the September agenda, but before then, I mean, we need to see this and y'all need to verify that the contract that they've followed the
contract. And when does it do you recall when it says it was going to increase? October 1st. Yeah, I believe it's the next fiscal year. It's October 1st. We should try and get a comparison whether you know they pick it up one day
or two days. We really need that comparison. I run into um Heather. No, Heather wasn't there, but they um Dana was there. Well, Heather was there. I saw Heather was there cuz she saw that
night. Um, but I talked to Dana the next day and had mentioned to her about our dumpsters, um, and that the fact that we were, you know, gonna be discussing maybe in the future the dumpster conditions and she said that she would get with Heather maybe and look at them
and see if they could repair some of them, clean some of them up. So, I said that would, you know, be probably helpful since we're going to be discussing it in the future. So, I just mentioned it to her. Um I I know her from El um she's been over before to um
she was very understandable when we were getting the to she was part of that but I also asked her um about smaller toers because apparently there are they do have smaller toers and she said that it might be possible if we have people that are disabled or or elderly that
don't want such a big one. um she could set up a program with city hall approving it and then them bringing out smaller jitters for those certain customers. I said, "Well, that sounds like a really great idea. You know, bring that back to the commission."
But people complain about that. Do the trucks have the automatic? Not the arm. It has a tipper on the end. The tipper. They set it on the tipper. Yeah. Now, I was like I was in Naples a couple of weeks ago and they had an arm and it actually came in as they were
going down the road and dumped it. But ours is a tipper on the back. So, someone has to Yeah. Put it on there. Yeah. Take some personal work. Yeah. I also asked her too about the the doors, the gates on the enclosure. And she said, "Well, that's what we do. We
open enclosures and get the dumpster." And that's that's Yeah. Okay. So, did you have a copy of the letter? Did you make copies? He did not, but I will go. Just go ahead and give us the gist of it if you would. Yeah. And it says, "According to the first addendum to our solid waste
collection service agreement, this letter serves as a petition for our annual cost of living rate adjustment due to the increase in cost of fuel wages, insurance, cost, equipment, parts, and shipping. We have conclude we have uh we have been incurring over the last several months. The rate will
adjust to $24.6 per house starting October 1st, 2025 based on the current CPI calculation. Waste Pro is proud to be community partner to the city of Crescent City. We really appreciate your business. Should you have any questions or concerns, please contact us
calculation spreadsheet? Yes. And there's a calculation spreadsheet as well. We'll make copies. I will email this to you all today if that's okay. A PDM copy. And this is also part of our agenda um for September. Okay.
So, so you put that new calculation in here for the charges for How much of an increase is that right? On the other page about a dollar for waste water. So then we have our $2 um administrative
fee. Correct. Yeah. So that would take it up to 2606. Correct. Okay. And that's a calculation there to the comments to the right. That's that's how we came up with our number. Um I think here when you're looking at
this um where it says total charges just so there's no confusion. It's because it's all on one page. I would probably highlight that total charges for services. It it was a Okay. Yeah, oversight on my side is supposed to be there's a delineation
there. It's supposed to be bold. So then we go into our expenditures and the garbage contract and that's how much that increase is going to be. Steve is the one is the 6,000 or
I guess $5,700 $5,700. That's the increase. See? Oh, yes. Yeah. Okay. And from that, that's what goes back to the to the general fund. So we decreased
that. We decreased that back to the general fund, the 13 by $586. Why did we Why did we decrease that? I just think the amount we had the prior year is probably just a little bit high.
If you look at if you look at two 2023, it was 15,000. You look at 2024, it was 13. So we're probably right there in the middle. Okay. Okay. Even with the antifreeze. Thank you. Yeah.
Okay. So, mayor, I just had one question. Our council. Yes. So, I'm sure I could find this if I looked on last year's budget, but it's showing 575 customers. Um, do we know
how many customers we had last year? And that's a number that we give them every month, right? Yeah, we get that number and that was just based off of um I think I believe May. Okay. So that does vary.
Correct. Back in 2005, they just picked a number and stayed with it and it was way too much because we stopped updating them every month. So yeah, that was an actual number from Jos. Okay. Do we have any other questions on
this? I have questions. It's just a 77 increase to to our residents is what about how much? 70s. 70
to know. Yeah. I don't think I have anything else for Oh, except I will say I do believe the last time they raised the weight and I noticed they say it's a petition
because I think we have to approve that too in addition to the ordinance. I think we have to make the decision as whether to approve it. Um but I think the last time we did this um
we weren't timely for the budget and the um ordinance was retroactive for the start of fiscal year. You'll check on that please before you bring it in September. Waste water rate increases. So are we going to go to water or waste
water now? Water. So we're going to go to water. waste water. Let's go to waste water. Mine got all mixed up. All right. We were we were scrambling to get larger uh sheets in for everybody so
they would be a little easier on the eyes. Um all right. So we'll start at wastewater charges. Um as the note says a 5% increase in water rate. We've decided to be conservative here and utilize the last known audited number of the 496,000
in the 2024 unudited version and and increase that by 5%. And that takes us to the 521. Yes. Interesting. Um, okay. Okay. So, our year to date last
year was 371 and we're at 407 now. So, we have had a we have had an increase and we budgeted how much did we budget for that? 450 450,000
and we came in at 496 in 2024. Okay. Now, this next line, the the 10% sales for maintenance, is that the repair and replace fund? 10% replacement because then that does not need to be going into the budget. We
can't be spending that money that needs to go out. Oh, the 521. Okay. That's a separine item that has to go to a separate fund for maintenance and repair and replacement of the system both water and waste water. It sounds
been problem. Yeah, we haven't budgeted. It was budgeted. We haven't budgeted that. That doesn't go into the budget. Right. What line are you? Line 33. So it needs to come out. It shouldn't come in there. It needs to
come back out and go into a separate fund. Did y'all look at the historic I mean how how we've done these like last year's Did you look at last year's budget when you were doing this? Yeah. Okay. The spreadsheets from the same spreadsheet.
I don't know why we put that in there. And I thought on one version you had it out. Maybe it's on the water side. But yeah, that 10% you just can't count that as operating income. It has to have a separate. Okay.
So our cut in charge though, you're expecting we're going to get more cut in. We're going to get more services. We do. Um we're expecting more services. There are um more homes coming in, a couple planned developments. So, yes,
if they come in this year. So, come in this year. Okay. So, you need to back out of that. So, you need to back out of your total revenues of 576 of 52150. Yes. Hold on a second.
So, what does that do? 24698 is what that number comes in at. So, when we go back over to taking out the 52. Yeah. Okay. And you've got to um
got to try to on these next pages. And I know that but it would be see if I on there. There it is on the last page. And I know it's a carryover on that last page with the titles.
So you're showing 46. So, we need to back that we need to back that number down right as we're going forward right now. Um 46 97. Hey, so we have a 5,163
deficit. Are you on line item 61? No. net position. Okay, I must be missing that. Okay, so do we have um as we go down this
page, do you have any more? There's a question I had on the Bay Street that was for 2025 doesn't seem that the money not come in. What happened? And now it says it's going to take place in 26.
So that under for where is the money? CDG. Yeah, that C CDG. Didn't you say the project was going to it was happening here? Oh, Keith. I'm sorry, Keith. You were hiding over there. I couldn't see you.
I would see you. I can't believe I could not see you, Keith. You're getting so small over there. I don't know how you missed me. Um, yeah, that's going to be CBD when it comes in. Uh we're hoping it's gonna it
could release this year. We're waiting on them right now to do their final review of the paperwork. Is that part of the north? Yes. Yeah. We had to for that grant we had to include something to do with wastewater
right to get the qualification. So we're going to do a lift generator chain link fence um all underground service. They're going to redo the panels and it's also going to have a
um dial up phone system dial call if there's a problem. But that's going to be a cost too that's going to be added because we got to put in the phone line. Yeah. So, okay. But we don't have to do it yet.
I know. But I want to hear from him. Yeah. Uh that's I mean I mean it would be nice if we had it on all of our stations but it's not in the budget this year. So we had it in last year's budget because we were expecting to get the
grant but it just drove on and drove on. Okay. And now, um, like I said, they're Jason's waiting on them to send the paperwork back. And once they get it, they'll send us letters to put in the
newspaper and on the website to advertise and then they'll go out the bids. Okay. So, but we do think we're going to get it this year. We should if they hurry up and get done studying
it again. That all started when we started watering. We've been working on this one for a couple years actually way before we started all these other ones. You were you're involved with this, right?
I was. In part of it is the there's a flood plane management thing or something that was weird and they had to go back to get it all reapproved. I think I read that somewhere in your manage report but it is moving forward. I know we didn't advertise that already,
right? Under so it's it is moving forward. It's just taking forever slow. Yeah. Very slow. Yeah. Okay. Do we have any other questions on this on this page? I'm okay now.
Okay. Well, um just in Yeah, I had just one general question, maybe two. Um Okay, John. Well, just a general question about the whole system. Um for wastewater, do we have any customers
outside the city limits? keep the wastewater customers. Yes. Um well, we do we got the schools. That's right. Okay. Yeah. So, we have the schools and then um someone asked me this the other day
about both wastewater and water and I don't know the answer. Um do we have is one or more of our personnel certified and wastewater operation? Yeah, we had two dual licensed operators. Okay.
Jason and Chip. Okay. Jason and Chip. Yeah, we have to have that, correct? That's what I thought, but I did not know who. And what is Chip's last name? Vand. That's Mand. Okay. Because that's what he goes by Chip.
Yes. Name's Hersel. Got it. What if they class A or B or what is our license? That was um I know they're what is it? They go in between each right.
Yeah, both of them can run either plant and they can go anywhere else they want to and run a plant. I wasn't here. I was pretty confident we had the correct certifications. I just couldn't say who it was. And the person who was
asking seemed very skeptical for some strike reason. Um I can't imagine that. I'm just telling you they were asking you. I was very very positive that we had that. Um okay. No, I have a question, but it's
on a line on the next page. [Music] Going to go up to page two. uh personnel services staff salaries we uh gave you the split out there um
and I believe that does hold increase correct yes okay 5% is what we were at so that does have 5% increase for salary for staff members well you say that um but for the okay
for the amended budget it's 88,443 and I'm looking at 87,998. That's a decrease and I believe do we pull it off of the adopted budget or not? Difference between adopted.
Yeah. And then we got to add 5% top that and we're yeah the the dollar increase decrease that's off what that's 4,598 but that's not that much of an increase but it's a decrease in the budget. Yeah. We wrote off the adopted budget there.
Yeah. For some reason it's going off of the adopted budget for 25. Yeah. So that line item has a small decrease. So if that's the case,
that's an additional four $4,598 that we've got to No. Well, it's showing there that that's a um it's the same as the country.
So it's not increase the same. No, but he's showing here in his dollar increase. It's not going to show over here, but he needs to change it over here because that's another to show it as a It should be increasing by $4,422.
That's what you want to increase the 87998 to. It should be around It should be around $92,800. Let me see. We went through this several occasions and it must have we must have slid over
a into a different cell when we were doing the uh the math. So I said 92,596. So then again, we come over here. That puts us in an additional 45,598
deficit on top of the 55100 we already have. Right. And mayor, I apologize if y'all already went over this and I must have been looking on a different page. The
the revenue for the wastewater department, these numbers are quite There's a new version. Well, whatever. I just have a general question. The revenues are predicated on
us adopting an ordinance increasing waste water rates by 5% for this year. Okay. So, we're assuming we're going to raise those rates. Pass ordinance and said they wouldn't raise the rates. So it's it's on that plan for
association gave us I think it's still two more years that we raise and then we go back to CPI after that then yeah then we drop down to the CPI just want to make sure I was straight on that and I had a question about line 17
um which I think is overtime which when I look at this That seems we What did we budget for over time? The amended budget was $2,000. We've utilized $341 this year. Um $2,000 is
definitely a placeholder for overtime. As Keith can tell you, we can have stations go down um in the middle of the night on the weekend. That's what that pays for. Hurricane, you know, in the evenings when they're having to be out there pumping in the evenings. I mean, so my
my question was, is it enough? Um, yeah, in 2024 it was 1228. Yeah. And it's spread out between that and and the other department. So I I think that probably is enough. Right now we're at 341
[Music] just because I mean we haven't hit the bad part of here as far as storms. Um, okay. Just checking on that one. No, but we did in 2024. So,
and we still stayed within budget. Now, you come down again, you've got a $300 Christmas bonus. Um, and you you've spread that out over these. I had a question from I had a
question from before um from last year's budget because when we looked at last year's budget, it said one/3 for Keith Harris, oneird for Ronnie Grant. Now we're going to one half for Ronnie Grant,
oneird for a vacant position, and 100% for Chip. Um, so this vacant position, what's happened with that? Where's that vacant position? That was from last year's budget, Keith. Because we don't have a vac. We don't
have a vacancy right now. Yeah, we're full of time. I don't know why that was in there. Okay. One-third vacant position. It might have been Did we have a vacant position somewhere in public works last year that spread out? Yes.
Okay. So that's what it So that's where it was from last year. So this year that position's been filled, but I don't see it accounted for here. It was filled up by I think three months ago, that final position. Yeah. You see what I'm what I'm saying is last
year we took that into account. Their salary was still included in this. And I don't see in this area right here that it's still um Okay. So if you would please. So that's a third for that vacant position to see
how that fit position's actually funded. Yeah, we probably really need to get with Sheila on that too to find out exactly who is getting paid out of what department. Yeah, she'll know more of that than anybody
and cuz I know I'm paid out of waste water and Yeah, you got a third. You're out of it. Yeah. Okay, mayor, I have a question. So are you saying are you in line 16 with the notes on the side? Yes. So are you saying that we actually have
an additional person last year in our budget when we budgeted last year? Yes. One third for Keith Harris. One third for Ronnie Grant. We've changed that to one half for Ronnie Grant. Right. One third for a vacant position and 100%
for Hershel which is Chip. Okay. Right. So my question is from what I've heard we did hire the person. We did it. And so who are they and what box did they fit into? Well, that's what I want to know. It
looks to me like possibly what what you did is you took that vacant that one-third out and possibly moved Ron um Ronnie into that because he was oneird last year and now he's one half this year in wastewater. I just want to make
sure that if that vacant position that we've accounted for that vacant position somewhere in in the budget. Yeah. And we will we will I have a question for the commission though. Um
I'm working off of somebody else's work trying to get history for what's been done prior to myself being here. I've updated a lot of the notes. Um this we worked on. We we updated some, but the vast majority of this note was in here.
Is it confusing to have that there and to have sidebar conversation on that piece? Should it be out and we talk about the budget from what was spent before? You want to see those breakouts on the side of I want to see it because honestly I mean for me
looking at it you you you see a comment that says one/3 Keith one half run you know 2/3 Keith Harris you know here and there but there's no cost difference in line items for that. So you're still looking at a total amount. So that's what I'm getting. I don't want to
confuse you guys and I want the process to be smooth but and have information but I'm just wondering if it's too much information and we're getting down a path. Never give us too much information. All right. Transparency standpoint and I think that's where everybody understands that
oneird of key salary is going to come out waste water. Okay. Well, is the question really do you want to see what that oneird actually is? Correct. That's my question. I don't want to give too much but do you want to break out you would get five bucks?
Correct. I'm worth every bit of that. So in the next page you own you get your other third. So now we're up to 10 bucks. Okay. So that's what that's what it's looking like. So we want that broken out like that. So yeah. Okay. So we would have the salaries and
we would just put position 1 2 3 4. Break that cost out. And is would that be sufficient for you all? Yes. Okay. Not position one two three four. You have to we need to Yes. Just couple. Well, number one, I
still don't see where what is the name of the person who works either in streets, wastewater, water. Who's the new person who was hired? Uh, Joey. Joe. Jodicy. Like the singer. Jody. Well, that didn't help me. But is that
the last name or the first name or the whole first name? Jodicy. Okay. His last name. And but anyway, so this new person Joy um works in which department? He's in parks and streets.
Okay. So that that's something I said we need to get with Sheilon to see who's getting paid out where. Yeah. And it looks like possibly that's been moved because I think that oneird we just need to make sure that that vacant position is funded is properly funded
where it needs to be funded. Looks like it got moved from Ronnie because there was probably he does he's not doing anything with waste water. Ronnie's really Yeah, Ronnie's water and waste water. He's a little bit everything. I mean,
um, Cecil might still be in waste water. He was at one time, but it probably should be taken out of it and put in basically. Yeah. None of these notes are correct. Yeah. We're just looking at we don't see Well, it's something that just keeps rolling over every year. Yeah. Yeah.
Clean that up. So what to me what would be helpful is yes put um the positions and what the actual amount so it will be clear that they add up and you didn't omit anyone's salary um as you move between the
departments. And then particularly for these enterprise funds where there's the shared employees and then you need a notation. It would be helpful to have the names of the positions like just a separate page that says who they are and
that shows the split. So, you know, you can see that on on one page. Would the commission be okay if we added uh notes underneath like we have on other pages with the breakouts there. Keep the line items the same with the proper code and then just have the breakout underneath.
Is that okay for you all? Yes. I'll I'll do that and then we'll we'll update the note as well. Okay. Because you know when you write down um Okay. So, as we go as we go down this Medicare, is there someone that's
getting a Medicare supplement who would be getting a Medicare? None of these three. No, none of them. No, I'm not. Get I turned I turned 65 this year. Um Chip's almost 70, right? So, is that why that's been put in there, Steve? For the
Because we haven't expended any this year and you and we've got it last year's 1513 and we're doing 1276 is what we're budgeting. This is probably an allocation issue. It's up it's up in FICA. Medicare is up in FICA. But I'm I'm I'm thinking that
the Medicare is possibly the supplement that we give that we pay when someone's gone to Medicare because it was like that way in gas because we do that with um Dave with Dave. I think it's I think it's chip chip. It's chip.
So chip is So we supplement chip. Okay. That's what we needed to know. Okay. I'll put a note to the side there. Just make sure. May I have a question for you? Okay. As I understand it, I wasn't you said it's a supplement, but I was
thinking we pay their Medicare in lie of them taking our health insurance. That's that we reimburse. Yes. Right. But in other words, their Medicare is completely in lie of the the employee health insurance. Is that how it's working?
Okay. So for that person, we don't have a health insurance cost. Um they're but we are paying their Medicare. Or have we added keys in because you turned 65 in October. Okay. So for the full year. So we need
to add keys in. Yeah. For this don't next year's budget. Don't the employees have a choice? They have a choice. I don't know. I mean I think that would be whatever you determine. I know I I don't know what your plan is. So if we need to add that
back in, we need to add that in. Please make sure that before we finalize this budget. Okay. Actually, I believe I'm just going to take Medicare A. That way it don't cost nothing. Right. Mayor Cecil's on Medicare A. Okay.
And he's not getting any reimbursement, but Dave's on uh A and B. So that's where the cost is coming in at. Okay. Right. And so is Chip. Mayor, it's my
understanding um when you turn 65, if you're working, you can either choose to go on Medicare or if you have qualifying health insurance, you can stay with your employer health insurance as long as
you're employed. And if you get family coverage, you would pretty much have to stay with your health insurance because if you went to part B Medicare, then I don't I don't know what would happen to your family. We're not healthcare. So, let's make
sure that you've taken care of this before we go into Well, the gentleman explained to me last week about it. He just said, "Are you going to stay employed?" I said, "Yeah, I have no choice." He said, "We'll take Medicare A, right? But that's hospital and it doesn't cost anybody,
right? That's automatic, right? If I take B, he said it would be like 160 40 or something 40 or 50 bucks a month. I'd like to budget that in there per Well, just make sure before we do that,
but we need to make sure that this is because you just said you thought Chip was on a and if that's the case, then we still have a Medicare We need to know what this Medicare expenses chip is on. Yeah, onip chip is on a
I just want to make sure. And I guess the whole point of what I said was is correct. It may make a difference for somebody somebody who has family coverage. That's true. I'm sorry. We are This is This is
public. We're on public record. It's not their insurance. I'm not speaking to any one person. I'm just saying as the commission and for our city manager and doing the budget, you we may not want to automatically assume that every employee who turns 65 that it will be beneficial
to them to take Medicare. So that's I think that might be an individual decision. So if you'll just get clarification. Yes. And and and we don't and and you're absolutely correct. Thank you, Christina, for bringing that to our attention. That this is not um
So, and we get down to health and life insurance. Um it looks like we've expended out already this year 16,239, but we're only budgeting 11,200. Now, we do believe there's going to be um
a a a reduction, but still we and Sheila was looking into the differences. I I couldn't tell you right now why. um and um and her and and Steve both are are looking into that right now as we speak.
Okay. Um so I have an answer on our second read on that. And with this with the with the budget of 2026, it doesn't appear that there is an increase in that. Correct. Nope.
Correct. Okay. Okay. Do you have any more questions on page two? No, I don't. Anybody? Let's move on to page three. Um, I have a question on line 36.
[Laughter] Um, yes, that's it says bad debt. Uhhuh. Um, okay. We have We constantly have is that is that folded in to the water shops
because we constantly have a running total of bad debt in the utilities department. I think that's more collection of bad debt. So that's the collection fee we would pay for bad debt. Well, no, it's the unpaid. We have
unpaid. I know that. on that line 36 collection agency. Why would that be? Zero zero. There's zeros and I don't know why unless it's just a placeholder there.
I'm saying is that do they lump it all together? It's not un audited. So, back in 2023, that's why it's probably still there because back in 2023, there was $21,244. Um, we're in line 36. No, in the previous budget,
previous budget in 2023, it was $21,244. Have we not collected? Have we not last time that we adjust went to the collection? Okay. I'm just I'm just saying what is the status of that? I don't see anything for bad debt.
We always have a running total some kind of utilities bad what the answer is. Okay. Um and then also we have a bond debt at
line 48. That's the waste water. That's the money for pain rural development, right, for the wastewater treatment plan. Yes, sir. It was $14 million. Half of it was a grant, half of it was a loan. Yes, sir.
You know, when we pay it off like I don't know. Can we get some information on that so that when we do? Um, and we put in there, um, I guess 27, but shouldn't that go shouldn't that go
down year-over-year? And it has over the last It has. So, it should go down um year over year and we're going up. So, we've gone up $1,900. I need the payoff info for that.
And I would think that would be going down. So, if you would check on that, that's possible that we could I know in the past we've gotten trouble with the auditors from emptying for not having that money set aside. I don't know if it was this bond or
other ones, but we need to keep an eye on that. Make sure that that's allocated properly that we have the right correct. How much how much has to be set aside? Correct. Yeah. And they do a whole test on that. Right. Okay. And we have it set aside. Correct. The way it was supposed to.
Yeah, I believe so. Yeah. because we got our we got our they figured that out last year. One one thing I want to uh bring um attention to is is line 35. We have nothing in this line item right now because I'm actually waiting on a cost
from CPH or Midtower as you guys refer to them. Um this is because of the loan consent order from the FD that I brought up to you all in our last meeting. Um the fine is $15,000. I'm not sure what the stud is going to cost, but I assume
that the cost could be in excess of that. Um, it's an awkward situation if you ask me. I'm not quite sure. Awkward in what way? Just because the way it happened and Keith could probably tell you, but I mean the state told you where at one
time a few years ago where to put those wells. They didn't have the right information and now we're popping off uh, you know, nitrates and the numbers aren't right. and they didn't know where they selected the area to be, but it was right next to a an old drain field. It's
not fair in my opinion that the city takes direction from the state on where to put something and then they turn around and find you for it. So, we're looking at a fine of 15,000 and you're thinking that there might be more that we're going to be paying more than that for what? For a groundwater study through our
engineer and what we were told was that we wouldn't get fined if we opened up a permit and had the study going. We were also told that we would only be fined one time, a one-time fee, a onetime fine, even if it popped in test down the road. That's just a good stop though to
me. Well, Chip has been fighting this, I think, hasn't he? Yes, she's done for this. Yes, Commissioner. Um, it just occurs to me perhaps this is an item that we should ask our state representative or state
senators to look into how you can have this illogical um system that does not have a provision for relief. Um, because that would be something that they could potentially address um or
even um maybe decide to give us a credit for the legislative appropriation. But if it's if it's really um if we're really in a box that FD may maybe they would want to address that. I don't know if we'd be the only ones.
I think didn't he say there's only one other one in the state like this? Rare situation. There's only one other one in the state like this. Has FDA have have we gone to who have we gone to at FDP? Um as far as how far up the chain have we gone to discuss this issue? I mean,
chips went quite a ways. Did you you talked to her ass soon, right? Not yet. He was going to try to get a meeting together with us. Yeah, I think that's that's where we start. Um, and then Commissioner Devito made a very good point that if that doesn't work, um,
I mean, they might be able to make an inquiry for us and they could make an inqu they could do an inquiry for us. Um, but I think we start and we go to the head of of D if we have to. And there was only a couple places that had
these wells and one of them was um the golf course in Balaka which there's are doing the same thing but now they do deal with fertilizer. Um, we have noticed that Chip said cuz we haven't been mowing it. Well, when we
mow it, that grass rots and then it puts out nitrogen and of course it spikes the wells. Yeah. So, we're looking into We have to move the ribs, right? Yeah. And we're looking at somebody to come in and cut the grass and haul it off
whether they do it in hay bales or whatever. And the D said we are allowed to do that. We just have to keep track of how many bales they haul off. You know, I don't know a lot about how these well wells are actually installed,
but they don't seem to be enough well and then grass is around. Well, they got rock around them, but it's just like a well house. Okay. They're shallow 50t. I mean, when you say they got rock
around them, how how much? probably two to three feet. You know, I mean, I was just going to suggest, does that have to be further? Does it need to be six feet? I think it's just cuz it leeches into the ground when it rains and everything rots and then the dead grass still lays
on top. Okay. A lot of it never goes away. The whole idea is to monitor make sure the water between the ribs is not it's not it's not too high in nitrogen and not per. So that's so that's something that quite
possibly we're going to have to find that money if it comes in. When will we think that they would be finding us? Would it be this year? We don't know. A couple years already. Yeah. Chip said he believes that it could be as early as September this year.
This year they could find us. Um, that's something I think that we need to reach out to the higherups at D and and see if we we need to have a conversation even if we have to go to Tallahassee and meet with them. We, you
know, we start with them and explain to them. I'm sure Chip's got enough um documentation to show that everything that we've done he does. Um, I have a full write up on it and explanation, but yes, he does. Um because that's at a staff level that
they're that they're that they're doing that. So we need to Yeah, I think Mount Door or either a Popka has these same wells and they've had a big problem with it, but I think they pop. We can probably It's
a pop. I can't even Yeah. Well, they have all that, you know, from like a popka. All that. Yeah, it's pretty pretty good. Those nitrates. Um, when we come into here, there was something else. And I guess up
here, this equipment repair and maintenance, we put 50 in it this year. Um, I guess that lift station 67,000 we had to take out of there, but we didn't have we didn't have enough in there. Um,
so somehow or another, Steve, that we're going to have to account for that. in this year's in this year's budget because that's going to be because we only account had $23,000 budgeted and that was 60. How much was that lift
station? 67,000 67,000. So you're at 89,110 and we just need to find out where we're counting for that shortfall for this year. I thought we were going to take it out of the wastewater emergency room right
here. I thought that too and I asked that I asked him yesterday about are we sure that's the funds that that should come out of because I thought that was coming out of that's well that's yeah that's for maintenance improving
system so that that's qualified to come out so so that's the end of the top we took out yes yeah yes so probably just make sure that we see
that that's correct properly. Yeah. Um is there anything else on this page? Um I just wanted to get a quick clarification about line 43 where it
says membership and training. So, do we um that's the Florida Rural Water Association renewal. So, I'm assuming part. All right. What does it say? It has what? Florida rule water association renewal.
That's what she was saying, right? So, what what I'm Yeah, it's the same thing. So what I'm asking is like three places on the top, right? Do we do we divide that? There's another one in water is the total 600 and we just divide it between the water and waste water.
Is that what you've done, Steve? Excuse me. 43 with the Florida Rural Water Association renewal. Did you divide that up amongst waste water and water? I believe so. I think that's what it should be. Okay. Okay. probably want to make a note if you'll
make a notation somewhere that this is one half. Yeah, the other half of the annual of the annual fee, right? Just so there's a notation there so there's no confusion. And the other half is
um again if you go to line if everybody goes to line 44 cost allocation general funds. Yeah. So the number is actually over correct? Yeah. $760 over 145 was $760. Correct.
So I just need to back out $760. It's been done. It's been done. No, I know, but I'm looking at last year. [Music] Oh, 72500. Yep. It was the same same issue as previous where we probably need to do it because
of cash. So again, they they've had a shortfall there. something happened there. Correct. So, we need to find out to make sure that we don't have that. But the problem is they're going to replace $52,000 that's always been put in there as revenue.
And so, we look at it and it's all balanced, but that 10% replaced doesn't come in. It wasn't in last year's. It wasn't. It wasn't last year. [Music] [Music] Well, we can't. Well, we haven't. So,
that's why I'm saying what's going on. What's going on here? Let's make sure that our numbers are And so, mayor, I have just a question about the audio and everything. Um cuz I noticed um Steve's microphone is not
right in front of him. Is the sound system picking him up? Yes, it is picking up. Okay, thank you. Okay, do we have anything else? Depreciation. Are we we're zeroed out on depreciation and we depreciated out
everything? We don't budget for depreciation. We don't budget for Okay. I just want to make sure we did back in. I guess that's just that was the unodudited. Okay, that's I'm asking him. That's the Okay, thank you. Yeah, auditors do end up
for clarification on that. Okay, the auditor send that as part of their they'll send that for our depreciation. Okay. Yeah. Okay. Is everybody done with wastewater? If so, when we want to find water, I think he want to do water first, didn't
he? Our city manager has been trying to do water since we sat down. Excited about water. There's something exciting about water, right? But Mary, before we leave waste water, so you've been adding it up. We we do have we don't have a net positive
end position. We have um we have something to make up. Yes, we have I'd say 97 thou 9761. Okay. Commissioner Lori, what do you did? You have something else? How much? I have 9,761.
Okay. We're going to have to make up. You're have to make up somewhere. Okay. Water. Exciting. We're going to take that out. Line five comes out.
Yes. Um, mayor, I just have my standard question. How many customers do we have? And um do we have any outside the city limit besides the school?
It's just gas. You're right. Water gas. That's just gas. And if we don't know, could we just know later? And someone who has a business and is over by 309 told me they pay a
city water bill. Do we have a water bill? Well, over in Fland. No, I I cannot imagine. Okay. Do we have water? No, I don't think so. No, that's um
um I can't think of the name of the utilities, but it's in River Park. River Park utilities don't. Anyway, so much for that. I just wanted to see if I had missed something all these years because I did not water
that far out. A lot of them get confused because it's addressed city address. Well, I know that and I all about that. So, that's that's what gets everybody confused. They think they're they call here every time they want water in Drupland. Yes. And you got to tell them to call the
park utilities and permit. But anyway, but we do not. The We do not. But we do serve the school for water. Yes, ma'am. Yes, we do. Okay. The school uh the old YMCA
[Music] um what is that? Asia Hill. It's out there. And then um got a couple houses on that road and then we'll have the new school um fire station there too. We throw that.
Not yet. They never did do it. I guess cuz we were in the process of building this new one eventually. Okay. And um the coffee shop, Cindy. Oh, yeah. their own work.
Um, and then like I said, the new school and not the new school, there's going to be a tank and a pressure transition system. Yes, sir. Okay. Because to keep the water pressure and the flow going out there, supposed to help both ways. Supposed to help this, you know, the high school
land supposed to help bring pressure back into town. This be will be just a ground level tank or is it going to be elevated? No, it tank with high surface pumps. Okay. and they're in schools building that and then dedicating it to us.
Yeah. Um service charge. So the service charge looks like in 2024 it was 13,000. We still want to keep it at 10,000. We feel like that's
that's pretty accurate. We're at 8,300 now. Okay. That's conservative. Keep it there. It's conservative. Um, cut and charge 3,000. Do we have anything? Do we have anything
else there? Okay. Come down to the to the grants. Um, looks like that 500 that North Main CDBG that hasn't
I but with that it looks like that we've paid out 6280 on that. Yes, ma'am. The midtower. And where did that come out of? Do we know? They actually we had I'm pretty sure we had to open up a checking account and some money went into that.
Open the checking account for us. Yeah. And then they they wrote a check to midtower for some of the work that they had done on the CDBG. Okay. But Okay. And this one
I guess with a South Main with all of that. That was that was when we were mixing because one came in higher, one came in lower. Is that right? Remember with the other grants, the main the main street and and
Prospect. Yeah. Um I think main came in higher, Prospect came in lower or but maybe vice versa. No, Prospect would have been higher. Higher. And then um then we added Main Street. We used some of the uh appropriations
money pay help pay for that. Okay. Cuz that the grant for that side was a little lower and we got permission from the state to use. I remember it was one of that we were able to gave us permission for that. Okay.
We've got our 700,000 in there for the lake agent that from the appropriations. Yes, ma'am. Okay. Any other questions on this? Okay. I mean, we asked for twice that million,
but the state gave us half of it. Do we currently have a plan for what we're doing? We're we're working with our engineer, correct, to come up with a plan based on the money that we're allocated for.
[Music] But we're also doing a cost share. Okay. St. John's Rehab is going to pay some of it. So, that's going to help us get a lot done on Walnut Street and then help us most likely. You know, we'll be able
to finish out Leta. Okay. That's what it is. Good job. Make it work. Okay, let's go over if we can. Let's go over to page three unless anybody has a question on page two. This really got messed up on that
salary. We have the same thing on the salary here that happened on the other. I'm not I'm not pleased with that. Um but so we need to we need to get that fixed and we'll take care of that. that
is going to increase that. Okay. Some of this we've just covered with the rest like insurance. They're waiting for the quote kind of tracks the others on the staff salaries. That should be 101437.
And that's based on 5% increase from the amended 2025 budget. How that changed? I'm confused how that happened because I could have sworn we checked that. And also if you'll check on if you'll check on this from the Wow.
Is your looks like your FICA your FICA is going to have to change too. All of that's going to have just um insurance
[Music] I guess. Is there anything else on this on this page? Couple of the things that uh one thing that I I was putting in here for the for the guys uh on water of course is updated training with the state
certifications. So just put $2,000 in there for the employee incentives for those state certifications and other classes that might need to be taken. Okay. I think that was in the notes on one of the other enterprise funds and
that's that's certainly helpful. I mean particularly when this is put um put on the website so people will know what that means. Yes. That it's not just employee incentives that it's certification. Yes. Certification training or however you
want to I'll just copy the other on that. Yes. Um the we will talk on the Christmas bonus capital we um they had 300 in here. Um I have been
1500 but there's an overlap in the personnel. Sorry there's an overlap. It's the same personel. Correct. It would have to be split out between Jason's added into this one um instead
of chip. Right. So, but it's still at 100%. And we'll fix those notes as well and add the same notes down at the bottom. Split out. I'm not sure how this splits out, but it's some some overlap. Okay. Um
Yeah, because over here because when you look over here in wastewater, which these same employees, you put um 300. You've put 300 there. you budgeted 300 there for the Christmas bonus
and then over here you've budgeted um the 1,500. So that's 1,800. Yeah. And I think for employees going back and forth we were I was trying to think about what we could do for the employees at at at each employee getting at least around $300 for a
Christmas bonus. Seems like a mistype. It was a mistype. It was a mistype. Is everybody done with page three? Okay, let's go to page four. Okay, I guess my only question about um well other profess the money in line
28 for water testing and miscellaneous services. Um we haven't spent what was in the amended budget. So I'm just I just want to make sure we allow enough for any inflation or increase testing
costs since that's a that's a must do. As long as as long as we're sure that's accurate. Are you on line 28? Yes. Came in in 24 at 7,269. Um
and and I can say the water testing on all they have to have a certain amount of testing done per month. And so this is fees that that we incur every month. We we felt confident going in with the amended budget amount which was close to
the expended amount of 24 as well. Right. I'm just saying since that's a mustdo, we have to make sure that that's accurate. You can't you have to do it. Correct. Um and then if something I understand it because we had this in the prior year, if something comes up um
bad, then you have to do more testing. So that adds to it and that so that's an unknown. um had a question or observation about line 39 the um fire hydrant maintenance and repair. Was that
was that the archive? Yes. Okay. So to me it would be helpful to note that that was ARPA file. I put that note on there. Sorry. On I made my notes on my original
one that I was given. So it does say ARPA but then um also with respect to ARPA um we had to obligate it all last year we did that while Mr. Brohart who's our manager. Um, do we have a status?
Have we spent all the ARPA the funds right? We haven't I don't know that we've spent all the ARPA but we have definitely designated all the ARPA had to be designated by December of last year. Correct. We have designated and we have designated that
because it has to be spent by this December right or I don't think it has to be spent I think you just had to allocate it wellated by last year but it has to be spent by this there is a there is a deadline to spend it this summer
um that's kind of what I thought too so I'm a little worried about that um it seems like it would be helpful to have make sure I thought it was 2026 For some reason, I thought it was April 2026, whatever it is.
So, let's make sure. Let's just Steve, if you'll just check on that for the art funds to make sure, right? But there is a deadline, right? There's there's a deadline. And since it's what we obligated it for was pretty significant um infrastructure
projects. You got to get your ducks in the road to make sure that um you're going to be able to spend it. The only issue deadline is December from 2024. The spending deadline is December 31st, 2026. 2026. I thought it was 2026. So, we still have
a year. Okay. But it would be helpful if we had a listing of what we spent and what does We do need to have that. We do need to have a budget on I mean a page on that so that we have um so we know where we
are on on the art funds. That's very important. You need to spend it. We did report. I did. You did Michael at the December the December obligation line deadline.
Michael started it and I finished it right after you left. I remember you and Steve did a report and ensured that that report got where it needed to go. Yes. Thank you. So, if we go to um Keith, if we go to line 45 and it says operating
supplies, um in 2024, we spent 77,659. Um we budgeted 63,000. And again, we budgeted, you know, when we set this budget, we didn't have those final numbers for 2024. So, now we're
still at 63,000. Where do we think we're going to come in? We're at 46,853 right now. So, we want to make sure that we've taken that we've accommodated that. [Music] Yeah, the thought the thought the
thought process behind the number was to hold what we had last year. We haven't quite gotten there this year. We still have a few months left. Um, this like other materials, I think Keith and I have talked about shopping. We've already started doing that with some of our asphalt materials um and patch um
cold patch materials which we found significant cost savings there. Um I think inline items like this we're just going to even if we go lower but where it's at right now we're going to look for cost savings everywhere we can. So, mayor, I have a question about
speaking of ARPA line 51. It says water main on Main Street Design ARPA. It says we spent $438, [Music] 92 on that this year. Did that come from
ARPA? cuz the we the AR money total was $768,000 the I know we spent some on fire hydrants and we spent a significant amount on the
new moon lodge. Correct. Did we used our fun? No, we used it for the middle school. Well, we used it for the middle school, but I'm pretty sure it we did use it for the um 50 not 50,000.
We used it for the other for Yeah, we we used it for the one they gave the conceptual design and the analysis. I'm just saying there's a little note there that says ARPA and is it correct that
this all of the $438,000 ARP for money? I'll report back to you on that. We made a note of it. We're going to hunt it down. It could be. Did y'all say and you we separated out you know solid ways was separated out last year too. Correct.
Yeah, it was separated out. It was here. Okay. Just wanted to make sure. I thought y'all said you you just did that. Um, when we go to our when we go to the waterfront, I just want to check on this real fast and see where we
are compared to where we were. Um, so last year we were at this time 58,399 and that's in our operating supplies. This year we're at 46,853. So we're a little less than where we
were last year at the same time. Okay, just want to make sure that we've counted enough at 63,000. [Music] I have a question. I have a question on line 57. We have the South Main site
appropriation of um 439 145 uh I'm just thinking about what I'm thinking here. Um, did we have to did we have to use the that ARC money as as a
matching type grant to go with that grant? That's what Commissioner was just asking if they're going to look into that and get back to us. They're not sure where that number came from. Well, Commissioner Burton was saying her question I thought was a little
different. She's asking did we have to provide a match? Um I don't think that was straight. That's why somebody question I'm just curious the the dollar dollar amounts are so close.
I'm just And this was for a design for the water project and then this was part of the water. [Music] So I just [Music] hope I don't
That's okay. I'm going to recess for [Music] I think I think we're kind of done. Do we have anything more um on page four? Yeah. Um, as we go into,
let's go to page six. So, on page six, keep in mind that you're going to have to back out um that you're going to have to back that um 101st. Um, no. You're going to have to back out
the 46,000 46516, right? Um, so that's to back that out plus the plus you have the change in the expenditures for the labor as well. Yeah. And then the cost allocation again
in 2024 cost allocation. Um, these doesn't look like that. And I think that one's at 1328 as well. Can we check your spreadsheet real quick? It is 1328. But the transfer was only 438 811 in
2024. So last year that's you'll just check on those C just to make sure because it doesn't look like they're meeting those none of them are meeting those cost allocations. And we just
verified that we did transfer the 13280 for this year. We haven't you you've already transferred the full amount this year. You did the rest of July. Yes. You did everything in July. Correct. So it's all gone in July for this year but not for last year. Correct.
Okay. Mayor. Yes. With regard to those transfers and basically the city just floated it to them in prior years. At one point I made the suggestion that we treat that as loan to be maybe paid back in the
future. Um I think you said will they already owe us money? Um I know but um that's something to consider because if we do get more customers and we do get into a better position then ultimately it could be
paid back to the city. Um that's just something we could consider. That's something we need absolutely that we need to make sure that we're keeping a a um an accounting on that to know and we have that from prior that I don't
believe we have not written off either we had considered that and and just moving us forward that we would write those those off in the past because there was quite a balance in the past. Um, and we had
talked about that if we could write those off or not. Remember that Steve? Correct. Yeah. And where are we on that? We don't. Did you ever vote on that? How are we going to do that? I don't know. Let's Let's look into that and see. But as we go forward, we need to make sure that we're keeping up with that
because like what Commissioner Vito said, if we do end up having a um landfall at some point, then that's something that should be and then how it can be compensated back to us, right? Because we're Mary, you made the
point before. We're talking about utility users. They're supposed to do their own way although they are. Yeah. These are enterprise funds and they're supposed to be paying for themselves plus as opposed to, you know, if we ever did repay the money, then that could help the general fund itself, right?
Really should be making money. I mean, ultimately, and that's what I know with us trying to get these, and I know we're not the only municipality. I know just across the board, you hear from multiple municipalities, they've gone through rate studies and they've held off on doing rate changes. Um, and they've had
to catch up. So, they're doing catchup now just like we are. Thankfully, we're ahead of the game from where we were, but um just we need to make sure that we keep that we keep up with that. We have anything else.
Um Christina, you wanted to talk about um the colors that we were going to get some colors. Yes. As far as the painting of the two city buildings, we'll um be taking some paint sample the three paint samples up
today and painting the swatches on the wall so that you all can decide on the color. Well, and also so they're going to be on the outside. Well, I don't know. We could put an easel up and you know some chalk and let people make a vote. I mean, we could let
the general public know. Oh, it ask for comment. I don't care. I mean, it's good, bad, ugly. They want to get it painted. And she doesn't want to lose her cloak either. So, I'm sure that be painted on the outside of the building. We will get
very I'm sorry. Whenever Christina is done, I have something quick to say. Yeah. Good. Okay. So, Mr. War and I went to the annual conference. Uh each of us brought back quite a bit of information. Some of it's for the city manager, but
some of it we probably should share with the rest of the commission about Commissioner Roy shared some today about waste pro um about grants that may be available and other things. Um we went to some very good sessions and
Commissioner Lori um we went to two sessions on Doge and one of the well Doge and um the policy committees. Did any of y'all go to Commissioner Burton? Did you come and go to the policy committee? I did not.
Okay. So the policy committee meeting and this is quite important covered um two things and some of it was covered in the Northeast Florida meeting. um they're very concerned about the select committee on property taxes and they emphasized to us that our opportunity
our best opportunity to communicate with our state legislators is before January 1st um before they enter into session because then they'll be talking about putting something on the ballot. So um and they have material they have package
of materials that was Jeff Branches who he gave that to right and then as well for Doge um there was quite a bit of information um that was available for download. I don't think I properly saved it on my I would ask for it.
Yeah has it. Okay. Um and it may be on the FLC website but there's two parts to this. Number one, um the local government audits are going to be completed by the Department of Government Accountability by September
30th. They were very adamant they come to your house to be to audit. Don't change anything. Don't erase anything. Just leave it the way it is. Um Interlockans getting a doge visit. Um then the governor wants report for
January 1st and he wants some legislation. So, we are going to have to be prepared for that. And then apparently um under the new law that was passed the com the controller um whoever
former senator or whatever inia is um our new controller. Yes. Controller. Um he retains auditing authority. So the governor's office audits are going to be completed in the
fall, but the controller retains continuing authority. So that that's an important thing, but apparently it's likely we will be looking at legislation. Oh, I'm sure. So, but they were um
you know very clear that they want us all to um to do our part about the property tax issue and the educating of our legislators. So, okay. I've asked for that and we've also asked um requested that and and Betsy is working
on that. I asked her if she could get um a um I think at the Palaca hopefully at the Palaca when they're going to do a Doge um I can have a speaker there on the North Florida League of Cities.
Oh, got it. Got it. Got it. For the September meeting. For the September meeting. Yes. And may I ask I haven't kept up with it, but are I keep hearing DOA's coming again. We've I've seen two exercises now with them and getting the information. But is it something that they mandated
the governor's mandated to go to every municipality or we being it's in the PowerPoint. The details are in the PowerPoint. You may or may not get a visit. Um there's act as if you're going to get one. Is that correct? Pardon?
Act as if you're going to get one. Yes. And quite frankly, um, this was about an hour and a half of presentation from the director of the governor's department of government accountability department. And after there was so much
detail, um, I quit writing and I don't have to look at the PowerPoint to see what additional requests for information andor visits will be coming. So that's in that's in the PowerPoint, but it's very detailed. Thank you.
Don't worry, we're not we're not considered a blue city. The blue cities seem to be getting big already. Well, I was told that that was not totally it. That's the purpose of looking at the PowerPoint. And in Interlockan is
getting an in-person visit. So, apparently, um staff was very, uh clear about this. You don't have to be blue. Yeah. Well, I'm saying that, but I'm just saying that. No, I know we're not got hit pretty hard, right? But apparently that was the first
round and they're not leaving. I think several um um it looks like they're moving they're moving through and they're just anything that's throwing up red flags. Um so we
just need we just need to be um ready. They're going to get us by getting rid of the taxes. No more property taxes and I think that's something that with DOE that's probably uh veto did they talk about that because
they are looking at how as what that impact's going to have and if there is waste in municipalities and counties based on property taxes that's what I'm most worried yeah honestly well the the objectives I
mean the request from the league of cities and I think it's very smart once something gets on a ballot. Local governments can't spend any money to oppose um a ballot question. That was put into law years ago. So, your main
opportunity to let your um legislators know about what you use your tax money for and how much of it goes to police and fire and non-negotiable things like roads is very very important. Um the
strange thing was they talked about um are you getting a return on investment from your local government expenditures? This was from the head of Doge. Um they talked about have you looked at your contracts lately? They talked about specifically um are you making payments
in line with your contracts? Apparently they look at everything. Um some of the things I thought the um you know the chicken was calling the duck a bird and they were crit critical of local
governments for some things that I think state government does. Um you know because the state puts a lot of requirements on us but they talked about a lot of specific things like how much are you spending on contracting versus inhouse for example. Well, state contracts have a lot.
Yeah, but those they were looking at very he was saying they were looking at very operational things. Okay. Um Lori is fine. He's with Rachel. Okay. Great. Thank you. Thank you very
much for the update. Do we have anything else? Anybody else? We good. Uh we'll see everybody next. Um our next one's next week, correct? It's Thursday, I believe, at 10 a.m.
I recommend you bring snacks. Okay, with that, I'm going to go ahead and we're gonna work. Thank you all very much. Thank you, Mayor.