Now, >> do I need to open this back up? >> Do I need to open this back up? >> Yes, please. >> Okay. Good morning, everyone, and welcome to this workshop. The date is July 8, 2026. The time is approximately 10:08
a.m. We welcome everyone. And with that, Commissioner Moore, if you would please lead us in our invocation. Stand if you are able. Let's bow our heads. Dear heavenly father, once again we want to thank you for arising on this morning. We thank you for your grace and
for your mercy. We also thank you for looking over us all night long keeping us safe from all hurt and the seen and unseen. We ask that you be with us today. We ask you to bless every heart, soul and mind that present on today. Even those that attempted to come on
today was not able. Give them grace and mercy also. Father God be with us today as we do make decisions as we go over things today. Help us to make the best decisions. Do those things that will be pleasing in your sight. We forever praise you and give you the highest praise. These blessings we ask in Jesus
name. Amen. >> Amen. And the pledge of allegiance. I pledge aliance to the flag of the United States of America and to the republic for it stands one nation indivisibley
and justice for all. So, thank you everyone. Yes, I have a request. Um, I would like to thank you for a couple Oh, are we on? >> We are. We're on. >> We're on. >> Okay. Um, yes. I'd like to thank you for
a couple things if you don't mind real quick. >> Okay. Go ahead. Thank you. >> We're on a work. Um, are we getting this on tape? >> Yes. Okay. First of all, uh it's been on my mind to say ever since Catfish, um
the signs at the entrance to the city on 17 north and south, they look very, very nice and um it was group effort. It was a group effort. You led the initiative and I particularly um I like the white frames. I think they go as we've talked
about previously with architecture and I did get one comment from a local resident who's an architect who said that um they're very nice but they would be improved with some very inexpensive little finials on top. Yes. But he wasn't specific to me. And then uh
obviously thank you for delivering um the proclamation to the post office and getting the frame and for everything that you are doing for the proclamation and uh the reception that we'll be having tomorrow because you're doing a lot on that. So >> well thank you Commissioner Dito but it
takes a village. It's not makeup believe me and that design took a lot of effort. Um Melanie recommended and I think this is something for us to think about too. it would be very easy for us to put on each side of it. Um, planters, hanging
planters with with flowers, >> flowers in it, >> much like we have, you know, kind of out here. And that would just kind of dress it dress them up a little bit. >> Only if you take care of them. >> Well, these you don't will you wouldn't have to. >> Okay. If you
>> Yes, exactly. And then just to follow up if I could um Commissioner Buren opened our last budget workshop with um a statement and a bit of a challenge to people about they're complaining about things we do but they're not here. Um
and my suggestion would be that we let people know that they are welcome that we are going to listen to their comments. Um, obviously they can listen online. U, many people do. And I believe Commissioner Burton mentioned this. Um,
but just to reiterate, we all have email addresses. People can email us. Um, and some of us have our phone numbers listed. So, um, you know, if they're not here, they're I mean, you always welcome everyone and they really are.
>> Absolutely. They're welcome. That's what I did that yesterday. I said you know was with a with a resident he and I said you know if you you've got concerns if you've got something you need to share please come and share it you know because otherwise if you share it with one of us
you know it doesn't it doesn't necessarily of course you have to share it really you need to share it with all of us >> because individually we're only one vote but together we're a team and um so you need to really do that thank you commissioner for bringing that to everyone's attention because that is
important um we are listening um I know that you know even on email um I get complaints often that I don't engage I don't engage on email if you if you really want to talk to me talk to me you know it's it's
it's open communication so it goes both ways so thank you and and we welcome everyone to come in and express their concerns and and or their pleasures you know we definitely welcome that as Well, um I think together we as a
commission, we work we all work very hard to try to move the city forward and to do what's in the best interest of the city. Um we try to get it right. Sometimes we miss it a little bit, but that's not because we didn't try. And I think everyone here um I take great
pride in working with each and every one of these commissioners that um we all have the best interest of this city and and we don't see personal personal you know um agendas and so
thank you all each and every one of you and this is going to be a long day so let's get it started. Thank you Commissioner Dvito. Okay it's on you. >> Thank you mayor I appreciate that. Thank you commission for being here. Um, you all received my email yesterday, excuse me, and um, I found out that FGU was
actually going to be here with some of their engineers working with Dave on uh, some forward thinking, some progress, some planning and looking at some of our uh, grants and where we are. So I kindly asked if they could um in in the essence of trying to maybe um keep our meeting
short Thursday because we had a lot a very heavy agenda if they could come and and talk since we're going to be discussing the enterprise funds and gas and looking at the budget if they could talk about the financing financial hedging and a piece of the um overall
plan that we're kind of put in place and ask this commission to look at to um suppress some of the pricing and cost as we move forward into this next fiscal year. So, they're here today. Miss Katie Hall's here to do presentation. I'm going to take a break from this mic and drive uh for her to do that presentation
and then we'll move directly into our gas fund first. Okay. Thank you very much. >> Thank you. Welcome. >> Thank you. >> Good morning. Thank you for having us. >> I I did bring as you guys have noticed like half of my team. Um, so I do have
with me I have Steve Praau is our finance manager, Megan Santiago is our middle office analyst. So they work on our rates and then we have Robert uh Graves is our member services manager and Alex Rodriguez is our newest addition. He is our member services
operations specialist. So he will help um if Dave has any questions out in the field or help with audit things like that. So cool. >> So I had to bring them all for different reasons. So yes, you have you have our whole team here. Um all right. So, as we're going to jump into this, so this is ongoing as we've been discussing,
you've had me up here in front of you many times talking about the sustainability plan for your gas system moving forward. And this is kind of the next step into that plan. So, feel free to stop me anywhere along the way. This is kind of a complex topic, so feel free to ask questions.
So, let's begin with what is hedging? So, hedging is simply an investment that reduces the risk of adverse price reactions. That's what it's that is basically what it boils down to. You can hedge virtually any commodity. So corn and apples and gasoline and of course
natural gas. There's multiple products out there available, but we're going to start very simple and we're just going to talk about two products that we would recommend the city use going forward and those are futures contracts and call options. >> Can you see Commissioner Dvita? Are you
okay? We'd have to change. Thanks. Good. Thank you, mayor. Okay, that's a good idea. >> Is that a little better? >> That's better. And I will move just slightly. Thank you, mayor. >> We're good. Thank you.
>> This is one of the most important slides on this deck is the reason why we hedge. And this is the part I want to get across more than anything is this is not an attempt to beat the market. I'm going to repeat that because it's so important. We're not trying to get the lowest price. We're trying to get a
stable price that people can use for budgeting and and rate stability. That that is our number one goal here is to meet your budget and have stability, not trying to get the lowest price available. So, think of it as an insurance policy. All of you, I'm sure,
have homeowners insurance. You pay it every year and you don't think twice about it. Are you upset that your house doesn't burn down? No. Right? You pay it and you are glad that your house didn't burn down and you will pay that every day. You don't look at the end and say, "Hey, my house didn't burn down. I ended up paying more at the end of the year than I would have." Right? So, think of
it in that regard regard. The other important thing is when should we hedge? Unfortunately, what we've seen in the past is cities respond reactively once we see volatility in the market. Natural gas is one of the most volatile um commodities out there and people react once they see that volatility.
What we're recommending is to get ahead of it. And now is the time to hedge when things are a little more stable and complacent and you can get better long-term stability in your hedges right now. So we deal in decor. You probably bill in either therms or 100
cubic feet. But for the decor price, it's three to four dollars a decaderm on the market, which equates to about 30 to 40 cents a 30 cents a to your customers is a great price that they will never ever complain about. Anything below 30
cents a therm, the supply, the uh drillers are basically losing money. They're operating at a loss. So, you'll see it drop below 30 cents occasionally or $3, but it doesn't last long because they're not making any money. >> Um, however, these are some of the
things that we're we're watching that might affect prices. So, LG is liqufied natural gas. There's a big push for LG right now. They use it for um cruise ships, rocket ships. LG is in the in the news right now because they're talking about sending it overseas. That's what
um when they're with all the war stuff going on, LG is how you can move this across the world. >> We also obviously everybody's hearing about data centers. Those are big big users. So the data centers and LG each one of those can use almost a third of what the entire state of Florida uses in
a day. They're big users. The problem with this is those gas infrastructure isn't it doesn't keep up. They don't build it knowing that the load's coming. They wait for the demand to be there and then they build. So what that does is that creates this restriction. So we have enough supply and we have the
demand but we don't have the infrastructure in place to get it from the supply to demand and that raises prices. Uh we also know we have that crazy cold snap this winter. It set records on what people will pay for pricing. Unfortunately what we've seen
is once you hit that, it knows that the market will go there and then you're more likely to get there quicker in future. And then of course we're monitoring the the war in Iran. So, some things to be paying attention to. Um, all these two slides or these two graphs
here to show you the one on the left is a one-year curve. This is what you can buy based on. Um, the one on the right is a three-year curve. All I'm wanting to show you here is that we always see it go up a little bit over the winter. That's very normal. But what I want to point out is if you look at the three years is they're not really showing
these prices increase year after year. Normally, you see it steadily increase. it's not really showing that which is great for locking and hedging because you can then lock this in for a longer period of time and we know we can keep that stability. I would bet money that that is not what it ends up actually
being when we get three years out. So, and here's here's an example of why. So, on the left hand side of this graph, those are actual prices. See the volatility? It jumps all over the place. to the right. Those three graphs are showing obviously this three-year forward curve, but the blue line towards
the bottom is the one that just came out this May, where the orange line was made a year ago. So, you see that it is dropping, but they're still all ending up in the same spot. But, if you just ride the daily market, you see way more volatility there.
So, let's talk about those couple of products that we mentioned in the beginning. The two products we want to focus on today is a futures contract. That's a set price. You will pay that price regardless of what the market does. A call option though is setting a ceiling. And we'll talk about why that might when that would go into effect
when you would want to use a call option. But that sets a ceiling of the most you will ever pay. But there is a premium to that. So let me show you what that looks like. On the left, that's a futures price. That orange line is the price you set. The blue is whatever the market does.
You don't care. You pay that set price regardless. On the right hand side though, the orange line is your call option, which is that ceiling. So when the market goes above that, it caps you, but if it drops below, you would get the benefit of that lower price.
The next slide is going to show you when this would go into effect or when you would want to use that. So this were these are actually prices that happened in 2022. This was probably we call it the basis blowout. This was some of the most volatile period in recent history um that the gas market has seen. On the
left side is that futures. You lock in that price. Who cares what the market does? That's what you pay. But on the right hand side, you can see it protects you from the call option protects you from the high prices there, but then you get those benefits of when it drops down. And and that is a $7 call option
right there. So $7 is really high to be paying, but the but the likelihood of it going down is much higher where a call option at like $3, there's not much chance of it going down. So, it doesn't make sense to pay the premium when you're not going to offset. There's not enough market to go down to offset that
premium. Naturally, you would ask me, what does that premium look like? So, it it's tied closely to a futures price. Right now, a futures one-year strip is about 350, but closer you are to that futures price, the higher the premium. So, go 50 cents
out, you're at $4. Your premium there is about three cents a therm which is 8%. But if you give yourself a little bit higher so go like $5. So you're giving yourself a $150 or only 15 cent wiggle room it drops to just under two cents which is only about 3%.
If we're talking $6 gas to pay a premium of three cents when when we saw prices drop 30 cents it makes sense every day. But if we're sitting at 350, the chance of it going down, you know, why would you pay three cent premium, 4 cent
premium for it to maybe go down only five cents? It just it just doesn't make sense at that point. Quantity is the other parameter we would set. So, we're proposing that you can lock in up to 75% of your average daily
use for one year out, up to 50% two years out, and up to 25% 3 years out. And the reason we have that is then they stair step and then you can build on them as you go. So you're just always kind of reducing some of that volatility as we go.
>> So um on that last issue the the quantity and it goes down every year but so we get to readjust our contract for our range every year. >> Yes. And so what we do and this is um this is in a perfect world you would lock this in with one hedge. What we
found is that doesn't normally happen. So, for instance, right now the winter prices that we're looking at this upcoming winter are still reflecting last winter's prices. So, we're not hitting our strike price, which is we're going to talk about in a minute. So, what we do is we'll block in maybe a season or we kind of fill in when we hit
our parameters. So, you don't lock it in all at one time. We're going to kind of fill in the pieces as it makes sense. And all of it has a city manager's final approval. So, we'll call when we hit these parameters and we'll say, "Hey, we like what the availability is right now." we'll call him and say, "Here's what we're seeing. Do you want to select
it in?" And he says yes or no. But yes, this would be an ongoing program. So this would once you set you set up parameters for us and we operate within that and we just keep chugging along and we can provide um I presented this last night in Mariana and what they ask for is quarterly reports to just show what
what we've been doing, what's locked in, what that looks like. So that's clearly something we can do. >> So mayor, one more kind of dumb person's question. May I? >> Okay. that I can be dumb if I want. So, um, when you're saying you called the
city manager to to lock in these prices, we have to have the money to pay, correct? >> Yep. So, this is a financial transaction on top of your gas. So, this is not a dumb question. This is actually a very good question. So, we still go and we
buy your gas, the physical gas for whatever price the market is. >> Okay? This is then a financial hedge that we lock in with just a clearing house. Then before we send you your bill, we net those. So whatever whatever
the difference is, that's transacted with the clearing house. So then you only pay on the financial side. >> Okay. But still, when you're doing a hedge, you're going to pay a little more. >> No, you're going to pay whatever price you locked in. So, okay. So, on any
given month, you could either pay more than if you wrote this the spot price or you can pay less than if you wrote the spot price, but you're just locking in the price that you're comfortable paying. >> But you paid at the end of the month just like we hand you your normal bill. >> Okay.
Did I confuse you on that? No. >> Okay. Just make sure. >> Yes. So, this is just p the next slide is pictorially what this looks like. So the um kind of orangey color line, that's your average use. And so you can just see what 75% 50% 25% looks like. So
you still have a little exposure to spot prices, but it just reduces how much exposure you have. The strike price, this is when we would call and say, "Hey, we've we've hit the the parameters that we want to meet." So it's based on your price perm.
What that why that's so important is a lot of your either commercial customers or fixed income residents, they look at that budget so they know what they're going to be looking at for the year. And so for commercial customers, for instance, they can price their products accordingly. They know what their fuel and prices uh input is.
If we can meet that budget or come in below that, why would we not lock that in? Right? You're you're meeting or doing better than budget. That makes sense all day long, especially if it's nice and stable. Your phones will not be be ringing with people complaining about their bills. If they're used to a $40
gas bill and then the next month it's 42 and the next month's 39, the next month is they will not be calling. It's only when it jumps all over the place that they start calling. Right? So this kind the sorry go back one more time. Um the middle part there is again we have monthly, seasonal or yearly
options to hit these targets. So you can lock in there's lots of parameters on the the term of when we would hit these. So, if we're in the money for maybe this summer, we can just lock in this summer. If we hit the money for the whole next year, we can lock that in. If we're just in for one month, we can also lock that
in. So, there's lots of flexibility. And you can stack multiple positions. So, if we're under budget and you're like, it looks good, but I think we can do better. Maybe only lock in 25% of that 75 and wait for the market to get better. So, you can lay you don't have
to do all 75 at one time. Go ahead. So, I just want to during the winter months when we had the the gas y, >> our commercial customers were significantly impacted. >> Yep.
>> Um, how would this would this be better for them as far as how would that >> take care of that? >> So, I will tell you we have and two of the other things I'm going to talk about today if we have time. Um, our cities that had these programs in place, their
bill from this January to last January was virtually the same. >> Cities that did not have these in place, we saw them almost quadruple. Yeah. From last January to this January. So, we know this works. >> Yep. >> Yes.
>> Yeah. Yes. I mean, because I I know that some of them they said that they did >> quadruple. Um, I don't know. Not exactly. >> Okay. >> But but essentially the ones that had it, we had $3 gas locked in. >> And I can tell you delivered price, we
hit $88, I think was the record, $88. And we had cities that were locked in $3. >> So they still had again that little bit of expense, but to only have maybe 25% of $80 gas versus 100% of $80 gas is a huge difference.
>> And that's about us basically educating. >> Exactly. >> Yep. and nobody they're going to understand your customers if it's cold they're going to say we know we used more volume but what happens is they have more volume and higher price at the same time and they're getting hit on their electric because that's you
they're using gas they're getting hit all across the board >> and that's what they were saying is that they weren't using any more gas than they had been using >> correct restaurants okay >> yep um so the next slide these are just
things you consider so flexible parameters take so in the past we've come to cities and said here's a hedge lock in this actual hedge we've since changed that and we're saying have this rolling directive um so it's this program that just is always ongoing and
the reason for that is it gives us flexibility because to get in front of you guys takes time so when we see something in the market favorable that window might close by the time we can get in front of you present it and a perfect example of that was when the uh news about the tariffs came into place
about I guess a year or so ago. Um we had one of our cities give us a target of 370 that they wanted to hit. We were at 374 in the market. We said let's hold tight. It'll probably come down. That was right when they made the announcement about tariffs and the market shot up and we said we're not even close to in the money. Well then it
said oh just kidding. Everything's on pause for 90 days. It tanked at 311. We called them. We said hey we're at 311. He goes lock it all in. We locked everything in. Two hours later they said, "Oh, actually it's back on except for these couple of countries." Market went right back up. We had literally a
twohour window that we went from over $4 gas to 311. >> When we see that, we called everybody that had hedging parameters in place and said, "Guys, it's 311 for a year. Let's lock that." And they all did. So that's something that we pay attention to that. We could have made one phone call to
him. He could have said locked it in. It's just to give us that ability to go fast, right? So those things don't happen all the time. That's just an example of of one that people can relate to. >> So we as the commission though would have to give that permission to him.
>> Blanket. >> Yep. >> You have the authority. >> And so that's something that that Derek will have to make sure that we that's part of all that we decide to go that direction. >> And that's exactly what this is. That's what the recommendation is is it's a
directive that hits these parameters. So, it says that we would be allowed to lock in either a futures contract or a call option. Um, it would give us those quantities that we can go up to 75% for year 1, 50% for year two, 25% for year three, and it has to be at the strike
price or better. So, better or at the budgeted price for Thurm. With that, we would call him and say, "Hey, we've checked the box on all these things. Here's what we have presented. Can we lock it in?" And he would have the final say to say yes or no. So that's exactly what we're asking for is a directive that outlines those parameters moving
forward. And then we can bring you like I said quarterly reports or twice a year whatever you would want to see and just kind of show you what that looks like. Any questions on the hedging? >> Yes, that's the director I say. >> Okay. All right. Well, I got a couple other things for you. You guys have
time. These are quicker. That was the most complicated. We started hard. Okay. So, rate stabilization fund. This is something because every there's the elephant in the room, right? This is what you just re you just referenced in January. So, the left hand side we have just the dates for the last fiscal or
the last 12 months. The invoice, that's what FGU sends a city, your cost of gas. The burns, these are the therms that you guys read the meters. That's how many therms your customers use. So it's simple division. We take the invoice divided by the therm. That gives you your average cost per therm. You can see
especially in the summer it stays pretty stable. >> Yeah. >> Then you get to the winter and that it jumps all over 68 cents. It over pretty much doubles in January. Then it goes back down to 85, you know, but you have that spike and we'll show you in a graph form what that looks like. So what we're recommending is this. We call it a rate
stabilization fund. Now this is this is not to do with your rates. I want to keep this is just the cost of gas. This is just the commodity price. So again, we have your invoice from us. You have your therm is what you just saw. So you have your actual price per therm. So that's where it just simple division.
The yellow column though beside it is what we would kind of we would manipulate that to just smooth that curve out. And you basically have this fund that you create. And we're recommending a target of somewhere between 21,000 35,000. There's nothing magic to that number. You guys can raise
that, lower it, make it wider. Um, that's just what we threw out as a starting point. But basically, you have that fund there and essentially you can then add to it mostly in the summer. You over collect a little bit in the summer and then you use that to offset any increases over the winter. And this one
here, we're saying we're starting at a zero balance, saying that this is how we would show you to build this fund. And if you look at the bottom, um, you have that the 68 cents is if you that's the average if you actually pass the cost through your customers. So for this first year to build the fund, we're only
talking about three cents on average more per the really negligible your customers, but that builds it. That gets you your kitty. There's other alternatives that we can use to build this fund. But if you want to start with zero and just build it organically, this is how we we show
that. On the next slide, this is if once you get there, you're 21,000 starting. You can see that now they're even. So it it's not any incremental increase to your customers at all. It just smooths it out. And so you can see then to the side, you have the gain loss. This is
where you over under collect January. So there's one to point out there. If you had this in place, you would have almost used $23,000 to offset that high increase in January, but it would have kept that your rates to your customers. This is just again on the commodity side. It would have smoothed that over
and then we keep a balance on the right hand side. So you just kind of see that you use it more in the winter and then you build it back up in the summer. >> The next slide tells the story. This is this is really the the crux of it. The lefth hand side is if you just ride that, pass it through. You see that big spike, that's when all your customers
call or complain. The right hand side shows that. So it's it's okay to go up a little bit over the winter, but it's really smoothed out over the year and ultimately they pay the same amount. So really, we're just asking for a recommendation to create this. Again, that range we just put forward, that's
you can change that, but we're just saying 21,000 to 35,000 to help be able to have enough money to play with to smooth those costs out to your customers. >> We approve that. >> I thought, >> yeah, I thought we had discussed do the rate stabilization. >> We talked about it. I don't think we took any formal action on it. So, I just
wanted to bring it up again to show you real numbers because now January hit. So, >> but that can be something if you want to take um actual action on it today or tomorrow, I guess. Yeah, tomorrow. >> So, any questions on that?
>> I do have um actually for both of these things. So for the the previous issue, the um the call option, the hedging, >> um would we have to be specific about
like we're budgeting today. Would we need to be specific and give our city manager our budgeted price per therm? >> So typically that comes actually from us. We look at and we give all of our cities here's what the market looks like and then you include that in your
budget. And so we would take that into account when we call and say, "Hey, we we recommend putting in a call option." We include the premium with that. So that has to match your budget or be below that. So we kind of do that for you before we would call him and say, "Hey, we're within that straight." Okay,
that's usually you do the hard work. So and then again for this one, um would you want this would this commission need to establish the amount for the rate stabilization fund? Yes. Are you willing to choose the amount?
>> Yes. And you can always change it, right? You can start with what's proposed and play with that for a year or two and then decide if you need to make adjustments or you can make adjustments right out of the gate. That's completely up to you. >> Okay. Thank you. Thank you, ma'am.
>> So, your proposal is the 25,000 the next 25 >> 21 to 35. Okay. That's what you were proposing for. >> Yes. And the reason just to show you where that came from is if you look in
January that it was about 21,000 that you would have had to offset. So that's that's where we pull it from. Okay. >> So we want to be able to handle that. >> If if we went up from that 30 >> and then there is and then we find at the end of the year um that we haven't
used that. >> What happens with that? It rolls over. Okay. So it rolls over. not a rolling curve. >> So, it will continue to build and that will be even a better benefit for our customers down the road because Okay. Correct. >> All right. Last but not least, gas rate
study. And I do have Steve here, so if you have any complicated questions, he he did all of this, so feel free to ask the hard questions. But basically, we've done a couple rate studies for you in the past. Um, the last increase that you guys implemented was in October 2025 where
you did increase your customer charges $2. Um, and the residential, I'm sorry, for residential and commercial $2. Um, we were ready for another rate increase, but we wanted to cons have some other considerations before we brought this forward. So, here is what we wanted to include in this, and this is based on
the conversations that we've had with you over the last several months. So we wanted to include the general fund transfer because even though the gas system we were not putting anything into that. So this includes money for the general fund transfer. We also wanted to create a small commercial and large
commercial rate classification. Right now you just have all of it under one commercial rate. >> Right. >> We also wanted to ensure that customers outside the city limits had a 10% higher um the variable charge was 10% higher. So that utility tax. And then we wanted
to include some money for capital outlay. So, with those adjust all of those adjustments in place, there's a shortfall of about 78,500 per year. But we have some good news for you. >> Um, we did include, as you know, we did approve higher salary ranges for the gas
employees because we know you're going to have um a big transition going on with that. And good news, I guess you've hired some pretty spectacular hires. So, all good stuff there, but we did include those higher ranges. Um, one thing to also consider that's not in here is we have our accumulated net revenues that
we return to you at the end of the year, which is about $29,000 or more that we will be giving you this year. So, keep in mind you can use that for anything you want. You can put it into rates or you can use it to buy stuff. Um, but all of this the next step on the sustainability plan is a really strong
focus on growing the system. This is kind of the last step we need to implement and then we can just focus on growth. So, here's current versus the proposed rate structure. So, you can see that the customer charge does go up um $45 for
the residential. It goes up, let me do that math, $13 for the commercial and then it does go up $28 on the large commercial. And the reason for that, so there's not that many large commercial and for them, we'll show you a comparison. $28 is not is not going to make them that excited. Don't worry
about it. Um the usage, sorry, go back one more. Sorry. >> Yeah, you're good. The usage, we didn't touch that except for the 10% outside of city limit. So, we did not move that. And the reason for this is when you're billing your customers for two reasons here. One is you want more on that fixed
rate because you're this is to cover your O and M expenses. Those are going to happen regardless of how much gas they use. So, you want to make sure that you know that revenue is coming in. Secondly, customers can then also budget for this, right? They're not worried about it. So, this is a win-win for both
the city and the customer. So, don't don't be so concerned that it's mostly just on the customer side going up, but that's the reason why. All right, next slide. So, here's where that breaks down what I just said. So, it's only really going up um on the
customer uh charge there. And that will generate just that alone will generate your $78,500 shortfall. Okay. a question. >> Okay, so Katie, the 10% higher charge for
>> customers outside the city limit. >> Um, there were slew of bills in the legislative session last year. So, I'm assuming that currently we're not prohibited from charging more now. Is
that still a possibility in the future? And don't we have to have hearings? >> So, you will have to do the hearings regardless. >> Right. Right. Yep. You'll have to do that regardless. And so, this is it's saying that your right on the utility tax is to go up to 10%. So, we're just basically implementing what almost every
other city does. >> Sure. No, I have no problem with that. I just know there was constantly turning >> that very typical rate in ordinance that was what we'd have to do here. >> Yeah. Um
>> yes. >> And so um the outside is that everybody outside present city city limits is that people in park and or >> Yes. >> Okay. So everybody outside whether they're incorporated or uninccorporated. >> Correct. Well, the way we're charging
now is Crescent City, Walaka at the moment, they get the Crescent City rate, right? >> You know, as far as the tax and everything, but as far as everything else, um, as far as our large commercial, >> Katie, what are you considering large
commercial as far as a monthly? >> Do you remember? >> We can get that for you. I don't know off the top of my head. >> So many of our commercials that they call commercial, you can turn the said they don't use that much. He He's with us.
>> He's the guy that's going to sling all the dirt for us. >> Yeah, that's right. >> But as far as our commercial, we only have probably 18 customers that use maybe anywhere from 150 thems. >> Yeah. >> So that's the problem. Depends on where
we want to draw the line. >> Yeah. There's >> and this is also the setup for if you have more commercial because growth is going to be coming in the area. So this is also preparing yourself and that's very normal to have a differentiation between small and large. Some even have a medium size. I don't really recommend
it for you but they do bring that up. Yeah. >> Okay. One more question. Sure. By us going up for those um outside like those in Pomona and those in Malaca, do the municipalities there benefit in any way
from that increase? No, >> they wouldn't. >> We would they would not. >> Okay. Okay. I just want to make sure they do through their their tax the taxes utility tax. That's true. That's where I would that's where I would Yeah. >> Okay.
>> So they would >> So they would benefit that. >> Yep. But that would be the only benefit that they would that would be. >> So I know this is really hard to see and we can give you guys handouts of this but the number one question we get is how do these compare? So the right hand
side is Crescent City. This is for your residential. This is based on average usage. So really just look at the bottom line there. So the $45.38 is is what your average bill would be to your residential customer. the far side,
kind of that tinted green color. Those are your investor owns. And the reason I put those up here is if you were to ever contemplate selling your system, likelihood that one of them is the top buyer is high. So they're way higher, right? So even the lowest one there is almost $15 more than what you would be
charging per month. The other one I highlighted is Palaca just because they're right next door. So you can see you are a little bit higher than them at 38.55, but I don't think that that's insurmountable. I don't think anybody's going to really call and complain about that. You're pretty close, but you can still see for other municipalities, you
know, they're kind of all over the board. You're a little bit on the high end there, but you have the biggest >> physical area to cover. So, your O and M expenses are higher just to cover the geographic footprint. So, I just wanted to make sure we point that out that you are still way below the investors, but
you're right in line with the um other municipalities. >> Okay. Same thing here on the we just did small commercial just because that's easier to compare. So again the lefth hand side the green you can see. So so we gave you a range here. We did your um small to
large. So that's where the 263 to 276 is is small to large. >> Compared those on the lefth hand side you're still again way below the investors and you're kind of right in the middle of the pack of the other munis. So, I know that you guys might feel like it's a little bit of a big
bump compared to what you've been doing, but you're really just trying to keep up with everybody else. So, don't if you're you were seriously contemplating selling your system, anybody that buys it is going to do this. They're going to bump the rates up. So, you might as well get the money yourself.
>> Yes. One question. Um at at any point as we are um increasing our rate to make us financially viable um do any of these increases run the chance of causing new
customers or potential new customers or existing customers um to choose not gas. No, you don't think that will make any difference? >> No. Um and for a couple reasons. One is part of this will help with capital outlay as well so we can continue to
grow your system. If you continue to grow your system, that's just more and more money to help keep rates low. Yes. So right now it's a squeeze, but then you'll have the benefit of that in the long run. Additionally, this is why we're talking about this with the hedging and the rate stabilization fund is all of those things together help
mitigate a big spike and and it keeps it very competitive with propane or all electric. >> Yeah. And those that are already I mean when they're using they already have those appliances that are using that gas infrastructure
>> they're not going to I mean and especially those that have the generators they're not going to do anything to jeopardize those generators and they they're not going to convert to a propane >> y >> um a lot of people that have gas stoves they've chosen a gas stove because that's what they want to cook on
>> better >> and to replace that it's going to be even more expensive anyway. So I I think that that's that's again education. >> Yeah. And one thing just to point out just because for education purposes, when you use direct to use gas as a fuel
source, it's 97% efficient. You get 97% of that gas to heat. When you convert it to electricity, it drops down to 33% efficient. So it takes almost three times as much on the electric. So that's from a cost perspective. That's why you'll never the electric will always
cost more money. again education. >> So this is the final recommendation we have that hope you'll move forward with tomorrow is to approve these proposed rates and we're saying effective October 1 started the school year. Um and included in that is the small commercial
and large commercial rate classifications and that 10% utility tax for outside customers outside city limit customers. So lots of information for you today but hopefully
No, I have a question for the city manager though. >> They'll go there. They'll go first. >> Okay. >> Go ahead. >> Thank you, mayor. So, these slides um I don't know whether they're in the materials that were on our desk or whether we will or the do we already
have >> those slides were provided in the agenda for Thursday. >> Okay. So, they're in this agenda binder. Yes, ma'am. and in your email and then um I guess that was and then for the city
manager and the commission. So whatever we approve tomorrow, we still have to do an ordinance for all these rates. Correct. >> Yes. Yes. >> For the rates. Yes. Which will be a different meeting >> which would be we would do that just like we did in September. We did September rate increases. Yes. Just to
clarify, the customers will have the opportunity to see the advertised ordinance, but for the other permissions, those we can give to the city manager right away. Those are those are operational. >> Yes. And I have the hedging document that Don's already looked at and
approved, ready to for your vote. Um, which is the hedging directive. That's the first main main goal on Thursday. >> Okay. >> Can I make a comment? >> Yes. with our our and this is to the commission really for our rate changes. Can we besides just advertising the
ordinance that we're going to have rate changes, could we do some other notification of our customers instead of just October 1st we jack the rates up? >> Oh well we would want to >> yeah every year we just kind of wait and
we pass that ordinance and then October 1st the rates go up. Can can we put it on the website as proposed or should we have a workshop? I what do you all want right now? >> Say somethingification. >> Um, okay. >> I think Commissioner Lori has raised a
really good point and it's again what you said about education. Um, essentially the message that Katie has explained to us and maybe this is where Commissioner Roy is going. I think it would be beneficial to have a narrative
and I was going to say something about some of these water things we get um that are technical to have a narrative that explains what FGU has explained to us that we are taking these particular steps to um make our system more stable
to allow us to grow in future which could potentially keep our rates more stable or even knock on wood to possibly >> shave them off a little bit. I don't know. Um, and what was the other point that we're that we're doing everything
we can to keep prices low and stabilize the system. And I think that's a great idea because um I I would not use the term >> sorry the price because we're we're doing the best we can to kept the prices as low as possible but
>> not hit them not surprise them I guess >> right not surprise them but also make them understand that we've done everything we can to operate very efficiently. The city as a whole the general fund has absorbed some cost. Oh I know what my other point was that's so
important. Um, we could even I think it's also important and we can I guess we'll call in the details if everyone agrees um where we are that we're in the mid-range of municipalities and we are well below the commercial rate so that
people will be fully informed and know why we're doing it. I think right on the money >> always as we were when we were sitting here and listening of course to Katie because she she puts it in very simple
terms for everybody to understand. I was thinking because we've talked to Derek about bringing back the mayor videos >> and I think this would be a good opportunity for, you know, to do one kind of like a PSA and say, I'm, you
know, Katie, would you please, you know, you >> would you please give us a presentation? >> Sure. put you on there and have her kind of I think like you know like like you both said have her explain to them what we're
trying to do that everybody felt this last year what we're doing right now is trying to prevent that from happening and also if we can keep our gas system in good shape. If we can keep it
sustainable and make it sustainable, then we're not subject to having to sell it out to the private investor. >> We're trying to sub to stop subsidizing too with general, which is something we've been doing since I've been
>> so hopefully that will start follow. And so if Miss Hall wants to be on video, that's great. But um some people don't want to take the time to watch a video. Some people prefer a video. But I also think it's it's not
it's pretty easy to take that basic information that was on a slide and just put it in a one pager. We can send it out with the gas bill. We can make it available on the website. >> Absolutely. >> We have a bill insert that we've used for this exact thing. And so we hit the
efficiency, we hit safety. it's to keep the system safe and reliable and all the key words that you guys just said. And so we have that and it just is also a reminder of what the city's um responsibilities are versus what the homeowners responsibilities are. So it's kind of again like a little bit of a
public awareness campaign at the same time, >> but we have that and you do that for us and and we've talked about that before that you would do that for us. So I think that's but I I I do also think just a just a snip for people to listen
because a lot of people read people take in information differently you know so that people take you know >> information differently. >> It's our responsibility to get there anywhere we can. >> Okay. Absolutely. >> Everywhere we can. >> Um and then I just want to talk about
just real fast while you're still here. Um, you know, Dave, bless his heart, he's pushing for 50 years here with the with the city. >> 55, 60 years here with the city. He's
been trying to tell us and we won't let him go. >> Um, we know that that's going to eventually he is eventually going to say, "Okay, guys, enough is enough." >> Right. >> And my understanding you're you're helping get us ready for that, correct?
>> Yes. I have a couple of leads that I'm working on. I was hoping I have a little bit more information for you today. Um, but I don't want to oversell. So, um, but I am actively working on that. >> Okay. I mean, want to put you on the spot. >> No, no, you're making sure that because we have throwing you under the bus, I
guess. >> She's waiting on a little info from me and I'll I'll get it to her today. >> Okay. That's just something that's, you know, um, and being in, you know, >> respect his time. >> Yes. They love him, but he deserves a
>> He does. He does. While he can still enjoy retirement. That's what everybody's goal is. While they can still enjoy retirement. >> Yeah. >> Okay. >> One of one of her candidates that I know real well would be an excellent fit. It's just a matter of the numbers. But
he'd step right in here like I never left. He knows everything I know and he knows 100% more and he's very well polished. But you know what I'm talking about. >> Yes. And we are working. But yes, we're trying to make it affordable and yes,
>> make it work numbers. >> Okay. >> Okay. >> Do we have anything else? Okay. Well, just um my comment before and
Miss Paul has said this, more customers help spread the cost over our system. And I just want us to be mindful the more we think about um infill in our city limits, we have plenty of vacant lots, residential and commercial um that
has the potential to help our all of our utilities, not just gas. All of our utilities. So that's I say that's probably music to Jeff's ears because he would love to be running service lines for you all these cities. Yeah. So for all these customers, so
>> we have we have vacant lots on service line. Sorry, Jeff. Um I mean for water and sewer and gas, we we have infill potential. We do. >> Yeah. And and you were perfect. You were right on. And this, like I said, today
was the last kind of money stuff we have to talk about. And now we get to Yeah. go out there and and start doing that. That'll be our focus. But you are. So that's something too in thinking about that to do incentive type programs for new for new builds. >> Yeah.
>> For new builds coming in um if helping us with that too. So >> we have lots of >> Yep. We just had to we just had to get all this had the groundwork laid and now we can focus on that. We have a great marketing person that the one person I probably didn't bring today. Um so but
we have a great person focused on that. So that is her entire responsibilities to help these systems grow. >> Yep. >> Well, thank you all for so much of your time today. >> I will not be now since I just gave you the whole spiel today unless you visit. But um hopefully take action on those
three things and >> make sure that we have that listed so that we know what we're supposed to be approving. >> Yeah. >> It's on the agenda. >> Yeah. >> Tell me just >> so we approve it all >> because I think we haven't done that before sometimes. Go ahead.
>> We don't actually have to make the noise, but a silent round of applause for everyone here. >> Yeah. I I think that, you know, when you look out here, so we look at, you know, our gas department and thinking that it's very small, but then
when you look at this, it gives us a different comfort level. It gives me a different comfort level. I hope it gives all of us a different comfort level. Yes. that um the work behind the works that's >> always say we're an extension of your staff so you have a whole group of us to support you and yeah they I don't always
bring them with me but there are lots of people yeah working on your behalf all the time so >> and and you know Katie we we um you've been a cheerleader in this in keeping us going keeping this gas department um so you still have that
same belief in our gas department >> very much so you Yes, I I love I would love nothing more than to keep your system and grow it and show it be this very profitable entity in the very near future. I mean that is that is why I do my job right is for these types of
stories. So I will promise you they hear it all the time. They're probably like rolling their eyes how many times like okay how what can we do for them? So absolutely we are fully dedicated to uh growing your system and and make it very profitable for you. Thank you. >> Appreciate it. >> Thank you all so much. Thank you. Thank
you all. >> Mayor, can we do a five minute recess? Just a five five minute. >> Um, I'm going to do a five minute recess. on. >> Micbody. >> Yeah. Yeah. That's what makes our life. If it made a noise and turn off then you
just had to stop it. >> Yeah. But I can't I only have the first section. It doesn't continue. It only >> does right. So that's >> we'll have to figure that out. >> Are we ready?
>> Yes, ma'am. Go ahead. Okay. >> We are back in session. Let's get started. Mr. Martin, we're going to start with our gas enterprise funds. Correct. >> Yes, ma'am. We are. Got it up on the screen. Um, am I ready? Am I?
>> Yeah. Okay, I'll speak a little loud so we can uh hear on the mics. We'll start out uh with our gas fund. Uh just looking at this um Steve and I have given you guys the 24 audited, the 25 unudedited, the adopted, 26 budget, and
the year-to- date which we have. Um and I don't recall is it May or is that is it May or is it June that we have in here because it is still May. Okay. So, we're still mid year um with some of the numbers. So you can have have that in your back pocket to look at this. Um, of
course we utilized uh most of the back budget and then kind of extrapolation um for the rest of the year. Um the first line item is our current minimum charges. Right now they're at 16 or 18 I'm sorry. And that is what we utilize
for um for our gas sales non tax resident sales and usage. I got with Joselyn. We looked at the numbers um and we extrapolated those out four more months based on what we've taken for the whole year. She felt comfortable with um this. It's probably a little under. Of
course, if we go with a rate increase, that number of 531851 is going to increase um significantly. Right now, we're using 18 in lie of I believe the new rate was 20 or 22 for that. >> 20. Yeah.
So, uh that's an increase of 11%. If you go into your packet, I know that I've printed it out for the mayor and for commissioner Devito. The others are in digital. You can see the breakout under the gas for the differences from last year and this year. It's real real easy
to kind of follow along, but that's an 11 11% increase based on last year's numbers. Um the next line item is a actual 5% decrease. Um this is current minimum charges of $22 that needs to be adjusted. Um but that also accounts for
usage and um that's for the taxable uh commercial sales and usage. That's 139,342. >> Um are we on target? Does she feel like with the gas sales are we on target for where we budgeted for last year? >> She feels so. Yes.
>> Yes. >> Um so moving forward, we have the gas sales for the commercial non-ax. That's churches and schools. Um, that was an increase of 5%. That's using the current minimum charges on usage and and u and
usage. So, that's an increase of around $3,000. And then we had the miscellaneous sales tax. This was a number I I literally put in. This was the only one that we didn't um go into see how it was looking. I mean, right now, as of May, you were
pulling in almost 5,000. We had uh 7,800 in the budget. I use 7,800 in this in this 2027 budget as well. And last year it we put 5% over the actuals for 2025. So we're just kind of maintaining that. It's being a little
conservative. >> The next increase of 64%. >> Yeah, it was the same. >> No, no, no. This 5% >> miscellaneous tax sales. You've got it increased up to >> It says 64% correct in 3000. Why is
that? >> From adopted budget. See, you've got 78 from last year. That >> it's just a >> There you go. >> That's it. >> No, that's still not right. >> It shouldn't be shouldn't be an increase or decrease at all because it seems like you're keeping it constant with where we
are this year. >> Yeah. >> So, it's the same. >> Okay. But it's still not doing right. right there. I mean, so right next to your dollar increase and decrease >> now you're 100%. Yeah. >> Yeah. It's It's your dollar increase decrease in
I don't I'm not sure. >> See your dollar see in the in the yellow, not the orange >> or >> the olive, not the Yeah, >> you're saying it says 3,00 $57 and then 64%. >> And so what I think you're doing is
you're putting it over >> the L column. Yes. >> Go over one cell >> from the from the current >> from the actual. It looks like you're doing it from the actual. >> Yes. >> And not from the budgeted. >> Yes. And because the percentage comes from
that you're in the wrong cell. Go over to the 3000 cell right there. >> Right. Right. >> Right there. Fix. Where does that formula come from? >> There it is. Sorry. Yeah. >> I have to fix these. I saw this on another one and we
>> There it is right there. >> Okay. >> All right. So, the 5% was again talking about from last year. That was a note that was that was older. We just left it in there for um so we had an idea of what we did last year. I didn't want to erase that one.
>> The admin fees. Um, this was something that we put in. This is service charge. I have to finalize this um with Joselyn, but she felt that we should leave it at 30,000. We've taken in more this year. Um, I believe uh 39,000's for the gas
service for Mr. and Miss Grath residents. U Steve put this note in there. Length of driveway required underground bore looking into remaining balance. Um, but there were some other items that uh that we did this year um that caused that to go up. Yeah, Josh
said there were service charges. So, I just wanted to get I want to get more in detail what they were. >> So, we're going to be conservative with growth. You're going to have more service charges, but uh we feel confident that the 30,000 will still >> if you're going to keep 30 again, the 600 over there needs to be fixed.
>> Yeah. >> Because you're keeping it the same. >> Yeah. Sorry about that. So, and right now it looks like we've done 50 over $55,000 in service charges. And that's what you're saying attributed a lot down
there to the house right outside of the city or the several houses. They couple of houses. >> Correct. Correct. It's extra work. >> Correct. >> So, that's not something necessary budget for. >> Right. Right. And and when you do these service
charges, just just a a side note for that, the service charge, >> that's um that's the actual charge. That's not >> We don't mark it up. >> We don't mark it up. That's not That's
not profit. That's the actual charge. >> That's the actual work. >> Okay. >> And and they reimburse for that. >> And they reimburse for that work. Okay. Right. And mayor, it's my recollection that in prior years our charges kind of lagged and we didn't we
just started charging for actual work, didn't we? >> Well, which is helpful. >> Yes. I think for any of that though, I think they had to especially with something to that to that degree >> right it was >> that we would have to I don't know that
that's something we just started. I think that's something that if >> No, I think >> if they had to that that we that the gas department didn't couldn't afford to do that. >> Exactly. >> So, right. But I'm saying I think several years ago we made sure that yes,
we could Yeah. charge those actual charges. >> So, moving forward, other income, sale of surplus equipment, all at zero. Um didn't have anything in there. Um, if you look at the year-to- date actual, um, under other income, you'll
see 88,000. That was for the elementary school gas hookup as well. And those are items that we just, you know, >> would that have not service charge, >> right? >> It would have gone into a service charge. >> I believe that was different because the service charge are usually flat. I'd
have to get with finance on that. Service charge usually a,000 to,500. I believe this work was different because of the type of work. Whatever was charged for that one out there was thousands of dollars out here. >> That that out here right at the at Crystal's house, that was thousands and
thousands of dollars. Okay, that's where it looks like you put that in there was a service charge. There's no way if we if you're talking thousands and I mean a,000 to $1,500, there's no way we would have had >> a $55,000 service charge increase over
our budgeted amount. Even if you look at what we've done in the past, 24 and 25. So that >> those are just minimum charges. The the,5 minimum, I believe, and I'd have to give ask Steve on this. We looked at this yesterday to see where the on this
other income why that was where it was and it was the new elementary school, the work that we did out there, >> but I'm not It's the $88,000 school. And I'll have to get with Joel, too, because she like when she >> Yeah. When she coded it. Yeah. We could have went either way. So, I'll talk with
Joselyn just find out why. >> But again, for simplicity sakes, you know, rather than go into other income and us have to figure out what that was, >> put it under service, >> look at how it could be in service
charge because you probably didn't and you didn't probably charge them >> um outside of our cost, right, >> for that either. >> Correct. So, Should so it should have gone into service. >> We can move that. >> I mean it just seems like >> I mean make sure that that's what
>> we will >> that it is. Yes. If I could um to me it makes sense the way they have it here because for a couple reasons. Number one it's such a large amount. Um secondly
they they identified it in the notes. I mean, it's such a large amount, it's unlikely that we will have another one-time thing. And if anything, um, instead of calling it other income, I I think it
would make more sense to keep it separate and to say, um, just, you know, one customer service charge so that we would know that it was exceptional. >> Well, then if that's the case, >> Yeah. If that's the case now, they could
take that note and put it up here overage or larger because that same thing happened out here. I keep and maybe mine's different, but I'm showing that in service charge here, we have a $55,363
for for just one. >> We don't we don't but I know it was a large amount that they had to get 39. I guess that my to me it would make more sense to put anything that was extraordinary in a separate you know
significant one-time service charges to put all those in >> well and that's that's what I'm trying to say is that they need to be lumped together and not separated out like that >> but not we'll look into the into that side with Jocelyn and the billing or the the coding
could do and I think this is where the confus confusion is maybe Commissioner Devito with us is because he's saying 1,500 that's a standard just service charge and the different things that they do for the services that they charge. This would be a connection charge.
>> So these are more connection charges. So maybe you need to name it something differently and name it new connection charges. Something like that. >> Something like that. >> Okay. um and zero it out because I mean as far as from a budgeting standpoint because we don't know >> right
>> how many people are going to sign up for that that's just something and it's kind of a pass through >> it's not really it's from an income standpoint it's a pass through because like you said it's the actual cost >> right >> but and mayor also if you if you keep
the more normal service charges in one place that just for budgeting purposes that tells us more about what our customers are needing as opposed to the extraordinary which are to be celebrated of course. Um but it yeah I think you're right very much
if you look at it year-over-year we budgeted for 30,000 right >> and the year prior it was 23 even though it's un audited the year prior to that it was 27. So, are we overbudgeting? We don't know that because we've had these significant >> um
>> oneoffs. >> Oneoffs. So, they need to be separated as commissioner BS. >> Okay. >> All right. I made a note of that. We'll take care of it. >> Okay. >> Uh moving forward. So, if you look your total revenues right now, um budgeted at
$773,422. Um I'll fix these later for percentages. >> Did we transfer last year? >> Did we transfer 185,000 to the general fund last year, Steve? >> Um, >> did you make that transfer
>> in 2025? I believe so. Yes. >> That amount. Were you trying to make up the difference from ours because we didn't >> Oh, you know what though? I don't I think we did maybe half last year because um >> So, this is transfer from the general
fund into into ours. >> So, that's a transfer from the general fund to the gas, >> right? This is revenue side. >> Yeah. To the revenue side. So, >> why is that? >> Why did we do that? Why did we Why did
the general fund transfer money into >> the gas fund? the gas line. >> Yeah, I'll take a look at that. >> Shouldn't have done that. >> Yeah, see what that was >> there. I fixed those uh line items that
that macro that equations. So, we're good there. What line item were you looking at? The transfer >> transfer for 2025. >> Actually, there's not a number mayor if I could, but it would be 20. There's actually a gap there. It's 41381-100.
>> Yeah, mayor. That doesn't really make any sense. >> But >> okay, so we've got the FSMA grant. We've talked about that. Um gas re relocation $0. Of course, that um that's out. But
the grant, the FSMA grant, we put it back in. We've spent approximately, if you look at the note on the side, we've spent approximately 51,353 as of July 7th. Um rather than parse that out, that work is going to continue into this next fiscal year. So, we put
the one and a half um million back in there for this budget. So, total revenues and grants right now is an increase of 6% or $49,000. >> What? >> Let's I'm sorry.
>> Sorry. Let's go back to line 23. State is holding approximately $40,000 highway 17 future use. Did we expend did we have to Is that any money that we've expended? Do we know? >> I don't believe we have expended any of that money. What I was told from Keith
before and from Dave is that that was that that was they were holding that. We haven't expended anything on that yet. Um it's to be set for future work. That's what the notes uh what we put in here and design changes but that um as far as I know there's nothing has been
moved on that as of right now. >> Okay. So the gas the gas line relocation back in 2024 it shows a revenue of a million and then we're coming to 2026 we've got 1.5.
>> Um we had zero in 2025. So why is this 2026? Are we putting this? I just want to make sure for clarity purposes. >> Yes. If you look at the FSMA grant, >> yeah, >> it that is that that takes place of the
1.5. You can see where it zeros out there. So we've put it under consolidation under line item 24 for FSMA grant >> because that's what it was for, >> right? >> The gas line relocation is all done, >> right? >> Yeah. Yeah. So that 1.5 million should
never be under FISMA. Yeah. >> Yeah. >> Should be under FISMA or should it be under grant gas line relocation? >> It should be under FISMA. >> Should be under FSMA. >> So you've changed it, right? >> So you just changed it, >> correct? >> Yeah. Because the gas line has been done
by location. >> That's why I'm asking. >> Yeah. Yeah, you're correct. >> Okay. Okay. So, mayor, if the gas line, May I ask this question? >> Absolutely. Okay. If the gas line is done, so what what does BISMA actually
stand for and what's the 1.5 million for 2027? >> That's the the pipeline health and safety >> pipeline hazardous material safety administration. >> Thank you. >> Okay. So, that's something completely separate. >> It's a federal grant, >> right, from the gas line relocation.
Yeah. So that's correct. >> So the way I'm reading this, the note um in line item 23 means that there's for gas line relocation, there's an outstanding $40,000 waiting to pay us for future work. Do I have that right?
>> I believe so. >> Okay. Because the gas lines run at 17 and when they do when DOT does that portion, then they will have >> they'll release that. Correct. Correct. And I believe last year it was a mistake most likely on my end putting the 1.5
for FSMA under the line relocation which is why it was taken out zero uh you know a new line item for FSMA directly for 1.5 1.5. So again going back to totals total grant revenue uh re revenue or total
revenues and grants this year's 2,273,422 compared to the adopted budget of of last year of $2,224,025. So that total difference is $49,397 or 6% increase.
Um, >> so your total revenues and grants, what do you have now? 15, just theif the 1.5, right? >> To total revenues in grants would be 2.273 million. >> Okay. Total grants though is the 1.5.
>> Yes. Total grants is 1.5. Yes, ma'am. >> Okay. >> Yeah. Then total revenue is the is 773,422. Great. for say that where do we find separated at the bottom of page lines 22. Yeah,
that's right. Okay, got it. >> Thank you. >> I thought Okay, wait a second. >> Sorry. Sorry. >> Okay. >> Okay, you're right. Okay. >> All right. Um I left the notes in here.
I talked about that with Dave. This is moreformational just as um for for a read ahead or some history on the regulator stations and the work that that um is continuing to to take place um from last year probably year before and then moving forward in the future.
Um moving forward uh going under expenditures. Um if if Steve if you have anything to say but uh we we did put in the 5% as we did for the general fund for COLA and cost of inflation. Um all
of the numbers have been updated. Um we held the same uh basically for the Christmas bonus at five employees are $100 each. Um the incentives stayed the same. Standby pay stayed the same. We had a little increase in the FICA, Medicare, pension, healthcare, of
course, uh, with the 5% increase for the salaries. The overtime though, I did go up $500 from a,000 last year to,500. Um, as it expands, as we have um, bad weather, wintertime, different things, those guys are going out. Um, they've
already spent as of through May this year $1,500. We'll try to watch a little bit more um next year, but uh I figured 1500 would be okay for our budget this this upcoming FY. >> Um two things. If you'll go back to page
three, you read in those notes and because it's I think that I understand you want to keep that in the notes, but if you look up where it says on line E, the gas line to Satsuma is completed and not included in fiscal year 2024.
you might want to was not God bless you and was not included in fiscal year 2024 just to make this a more current note >> and not a leftover note that could cause confusion to look like >> what what do you want me to state on there mayor sorry
>> and commission look at this and see if you agree but the line to set is completed and was not included in fiscal year 2024 >> right mayor I agree that is outdated information and >> obviously >> changed the Yeah. Yes. Well,
>> not not necessarily the year, but no. >> Adding the word was >> was >> not. I've got it. It's done. >> And was not. Yeah, that's >> it's done. Thank you. >> And then when you come on to page four, executive salaries, the 67, and that's
with a cola um at 3.8. That's not of course the 5%, but what are we doing as far as with Dave? Um, I mean, should we should we set a higher budget for salary dollars since we know that we might have
to if Dave should retire, which I'm sure that by we get to this fiscal year, he is going to be ready. Um, he he is and he isn't. Um, but yes, I I think we should. And the reason um that Katie
Hall uh came in and got involved um this early and kind of looked at their sustainability plan was so we could balance and get somebody in here that we can pay and we can afford. Um I haven't had direct conversation with the
individual. I know who the individual is. Um I would say a rock star in that world. Dave feels the same way, but I can tell you he's going to be in the 90s all day long. He's going to be in the 90s. And I don't know where in the 90s. I just know
it's going to be in the 90s for us to to to get him here. >> Okay. He's going to be in the for us to replace Dave, which we all know we have to have a replacement. Yes, >> we all know it's going to cost us more. >> Yes. You have been what a what a >> you know, >> blessing.
>> True loyalty. Um, >> we know that. You also know that you're going to have an overage where they're going to overlap because there's going to have to be a training period. >> Correct. >> So, that's going to drive your dollars up. Andre, what we've done the last,
especially the last year, maybe even the last couple of years, is as one's gone out, we've not accounted for that overage. That's hurting us. Yes. significantly in these contractual agreements that that we've done to keep
people in to help get the next person ready. We're not accounting for that in our budget. Correct. >> You're not accounting for it here. And as we go forward in the next year, I think it would be um irresponsible for us not to do that, knowing we're going
to to need to do something to that, you know, because we don't want to go into a budget knowing immediately we have to go into a budget adjustment in order to make it work >> to make it work. Right. >> So, I don't know. Commission, how do you feel about that? >> May I? >> Yes. I'm glad you brought that up
because it was on my mind because Dave had said specifically, I mean, number one, you're absolutely right. I think we need to budget for the new selling. Secondly, um Dave has talked before about a transition period. Um I don't
think particularly for gas department, we expect the new person to educate themsself. and Dave specifically spoke to us about that transition period and that he would be willing to work on a contract basis. But I think you're
right. To me, we would need um to have finance department, our city manager speak today and see, you know, what would be the rate he would expect and how many hours would he anticipate that transition to take because we should know,
>> don't. Well, I keep hearing that this new guy we're bringing in is the pop star. >> That's right. >> Okay. So, I think the type of training you would need is just how we do our business here in Crescent City. >> Well, that's what I was saying. We don't >> And I don't think that necessarily will
take all that long, quite frankly. >> So, a couple weeks a couple weeks. >> Yes. And so much more than that. >> We haven't gone down too far, but we we put in the budget last year. We exceeded the numbers because of the school. We'll
get down there to it, but I want to tell you, um, I did put in $15,000 specifically for consulting calls for Dave. It's under it's under other charges in the in this fund. We're $28,000 off from what we are budgeting
today for 67,000 versus 95,000. Now, that doesn't include the um insurance and other things like that. We need to look at the fringe. That's where Katie and I have been trying to get a couple things figured out. I asked for the five minute break so I could introduce her since she was here and her and Sheila
could exchange cards. Um, you know, we've we've had a short week last week, all that stuff. So, I'm working on finalizing that with her, but it's $28,000 swing, give or take, for for a salary for the the other gentlemen right now. Um, and we do have
>> That's what she is that she has said, Katie. >> Yes. Okay, >> that's what she said. Yes. >> And I think that's an industry standard. I think >> pretty pretty standard for the individual. Now, I will tell you that the individual um was uh very excited at
the opportunity to come down here to Crescent, loves Crescent City, and feels that he could grow and make the uh gas department um lucrative and efficient and run efficient and and make more money with it, grow it. he feels that
it's uh it's uh it's good where it's at, but it could be much better and has some ideas to grow the actual system. And you have to think about that too in an enterprise fund that if you've got somebody that has that ability and can
grow that system and you're paying them more, it's kind of an offset. Yes, it is. >> Because if they can bring more in, it's kind of like an employee. Yeah, >> you get an employee that's a high producer, >> you know, it they're paying for themselves. That's right. They pay for
themselves. >> Building on that, too, this does not have the new rate adjustment. >> Correct. We don't have that in here. We were using last year's number. >> Yeah. >> She was she was kind of allowing for that. So, when that's incorporated in the budget, that 28,000, >> it'll be fine.
>> It'll be fine. >> Yeah. >> Okay. >> Yeah. So >> yeah, today is I'm just bringing you based on what we had last year uh for those rates and and that's why I wanted her to come in and we discussed it today. Um I'll have the documentation like I said, Don's looked at for the
hedging and the other portions we can set as we move into finalizing our rate discussion. So um going back up to the top though, um starting out with those salaries we did put in the 67,000. Um that's where we're at on that 169 for the staff salaries. We're fully staffed
right now. We've got some really great individuals. As Katie was saying, Dave's been very excited about them, very proactive, willing to learn, ask asking for extra work, and uh it's been working out really well. I'm very pleased with those hires >> with the staff salaries with all the
salaries. Do you have the um do you have the increase? >> Yes, I do. >> That's already incorporated in. >> It's in here. >> Not just the 3.8. >> No, that's cost of inflation as well. It's all at 5%. We Steve went through and made sure everything was 5% increase
from last year. >> Correct, Steve? >> Yes. >> Okay. Just making sure. >> Okay. So, it's three 3.8 plus >> cost of inflation >> 1.2. >> Okay. I mean, is that >> you just change the note to say plus 5%. >> So, it matches everybody else. >> Yeah.
>> Yeah. It it says 5%. I can just put on here 5%. >> Right. I mean, you have the cola 3.8 plus. >> Yeah. which it doesn't say. >> Got it. It's all in. >> Um, and we also I mean the other thing to
think about this is something else to think about where you've got in here Dave the Medicare. So Dave has the Medicare, the new employee would not they would go on to the insurance. That's a savings for us when they go on to Medicare. But um make sure that that
we've got that built into our health and life insurance too that we've gonna have to fund that. >> Yes, ma'am. >> That we're gonna have to fund that. >> Yes, ma'am. >> And those final numbers will roll out once once we move >> further in the process with him.
>> What do you mean with him? >> With the individual with the insurance, I I'll have all of that accounted for in in the pay. >> Okay. >> And everything adjusted. I want it in this I want it in this year's bud I mean in our the budget that we're going to approve. >> Yes, absolutely. >> Okay. Oh, absolutely. Sure. Okay.
>> We're actively working. >> I don't know about the other commissioners, but I think >> we're going to we're going to make sure >> we all want it in this in this budget that you've taken care of that. >> Yes. Mix up. Yes. >> Absolutely. >> All right. So, moving forward, um going
under operational expenses, um medical testing stayed the same. Um, other professional services stayed the same. Uh, we reduced audit fees down by $1,000. Um, it wasn't utilized as much last year. We may have a little bit more
in there than we need. Um, but I shaved $1,000 off of that. On other contracts, um, we've used $600. So far this year, we had 2,000 budgeted. I dropped that one as well. The gas regulatory assessment fee, uh, reduction. I had the
discussion. This this is for the gas regulatory assessment. Pete, I talked with Dave about the reduction. He felt that he was he was comfortable reducing it to 1,200 from 2000. Looking at history and the usage for that line item. >> I'm sorry. I I'm I'm so sorry. Um Okay.
No, I'm not really go back to 42. >> 42. >> Line 42 >> for audit. >> Uhu. >> Okay. >> Um Steve, did they break down the audit charges per the enterprise? Do they give us an actual They don't. >> Yeah, they just give you a lump sum. >> A lump sum. So why knowing where we are
in our audit fees, why are you reducing it? Um why are you reducing it? >> Just because the l the lack of use and I figured we could >> What do you mean lack of use? >> Well, the audit. It's the audit. >> It's the audit. >> We get the audit. It separates out. >> We we separate and charge it across the
enterprise fund. So it doesn't all paid for by the general fund. There's no reason that we should not be charging more >> or an equal amount to this enterprise fund. >> Yeah. Do all all three enterprise funds should be >> but they're not all equal throughout each one.
>> I think what they what was doing before I I think what they were doing before I got here is I think whatever if the owner spent a little more time in one enterprise fund than the other then that one got a little more I think that's what the allocation >> but that's what I'm asking in the billing cycle I mean when they bill us
do they bill us according to that how do we know that >> bill one they just bill us alone? Yeah. >> So then so then we equally spread it out between all I was looking at how much we spent this year which was out of the 6,000 budgeted through May. We only spent 1,400 for the
>> You don't know that. How do you know that? >> Well, that's the numbers he gives. >> I mean, you see what I'm saying is because he's they're not giving us an itemized audit for for this enterprise fund. We're doing that on our own. We're we're saying that on our own. But if
you're going to divide it up, I think you need to >> divide it. Yeah, >> I'll put it back at >> the general fund. Otherwise, >> and we'll let's let's get a handle on that to know how it's >> Yeah, we get itemized invoice and then we can it'll help us better for next
year. We'll do that. I put it back up to 6,000. >> I don't know that we need to do that either. >> We just need to split it along. I mean, >> take the total cost and split it evenly between the the enterprises >> because that's what we've done in the past. So, I just don't know why >> just because this year it's 1450. It just didn't get charged enough to
decide. >> It just didn't get charged enough. >> It needs to be >> okay. I put it back to 6,000. >> Leave it because I mean that's the way we broke it. >> And we don't even have and that's what the actual current we don't even have the final bill from them for the 2025. >> Do we see we don't have that? Because
they haven't finished it. >> They finished it. They're still Yeah. still work on it. Yeah. >> Commissioner Devita, even though they told us they had it by June. We probably got a record on the final bill. >> Yeah, that's a separate topic. I have no problem moving it back up and to be
discussed further, but moving it back up does not hurt any >> No. >> Okay. But except that that leaves us those dollars short at the end. >> Well, he can adjust. >> Oh, I'll make the adjustments.
>> Yeah, that's no problem. Yeah, you can take that note out too. The audit line that's over there. >> I mean, look at what it was. Look at 2024 and >> Exactly. >> Yeah,
>> but you're right. We haven't They haven't finished this year audit, so there's still costs to come in. >> No significant changes. Um, as we continue, um, unless there's any other questions, I was going to continue with line 48, building repair and maintenance. Um, there are some roof
repairs that need to be taken place, just some patching and some other work. Um, that Dave talked to me about, we we decided we had 500 budget last year. I added 500 in there for $1,000. Um, vehicle repair and maintenance. This
is something that we're continuing to look into those lease options. I'm waiting for that company to get prices back to us on that. I think if we were to do a lease option, we'd look at saving significant amount of fuel as well. Fuel economy would be much better in a newer
truck. But right now, um we um we we increased it from last year uh to $5,000. We've spent a little bit more this year, but those trucks have been taken care of. So, I don't foresee them continuing to get worse when they we've taken care
of most of the bigger problems. Um, equipment repair and replace. Um, on this one, I increased to $1,000. Last year, we had a computer fusion machine that went out. The cost for it alone was $1,800 just for a cord. Um, it was definitely a one-off, but I wanted
to add $1,000 just in case we have another one-off next year, we're covered. Moving forward for advertising, um, this is paper and internet advertising costs are increasing. Uh, we have to advertise for 811 for 811 and call before you dig
and also emergency items such as disasters and special billings. We just added $500 to that. Um, as of May, we used almost 1,200. Uh the next one is one we just talked about. Um this is the other charges. You'll see $114,000
there. Um and budgeted of $15,000 for um for that. The reason being is because of the 75,000 for the elementary school gas line and 37,000 um um
we had 37 I forgot to write that. The gas line extension. Sorry about that. And >> okay, that's >> those are all reimburseables. >> Those that's where the charges came in at the top. >> Yes. >> When we had >> correct >> to the McGraths and then Correct. >> Correct.
>> Um but that is where the $15,000 is or was last year for for Dave that we put in and then also for um this year's budget I put in 15 which um give or take it depends on how long he'll be in. But if we if we have the right individual or
the individual that we're thinking of, there won't be too much of an overlap. Um it's more or less here's where the information is that you can find and and we go from there. >> Um >> can I just make a statement? >> Yes, sir. >> Um if that $75,000
went in for the elementary school, we had that in the special or the other other charges, right? Other income. >> Yeah, it was up top. >> Yeah. And then if that 37,000 for that gas extension was in whatever that was in, we should probably put that in other income then too so
that it goes out in other charges just to make it match up. Just a thought. >> Does that make sense? >> Do you comment? >> Well, we had this the elementary school separate. It was in other we'll make it >> that we already said we need to combine
those. >> Yes. But I thought but so that that stuff on the the graphs needs to go down into the other. >> We already said that that we needed >> and what we'll do is we'll put a note we'll put it in the notes for the breakdown of that but we'll have it in one item >> and not and not in
>> and not split out between other incomes >> and not in service charges separated out from service charges. But you have over here that we got that there was 88,000 >> for the school for the new elementary
school gas hookup. And then you've got over here 75,000 consulting cost elementary gas line extension. >> No, I think that that's natural gas director. >> That's consulting cost. >> Wait, wait, wait, wait. Let me just
>> It says a new natural gas is hired consulting cost. That's his. Okay. So you've got it it carries over. See how you have a period and then you have consulting cost. So you need to separate that out from the 75,000 because it looks like
>> I I'll just put some >> gas line extension. You could put just move the gas line extension up above 75,000 35,000 for individual resident but still 75,000 for the elementary school. Um,
how much did it really how much did was it really for the elementary school? Because there's there's a $13,000 difference that from what you got from revenue that this year. >> Yeah, we'll verify. I'll go through there with Dave and with Steve. We'll
verify make sure they charge. >> Yeah. >> Yeah. Because you're going to have to do a budget. So, because you have to do a budget adjustment anyway. So, you just want to make sure that those balance >> match. Okay. >> You right. You got that, Steve. >> Yeah. Thank you, Lisman. Um, so moving forward, IT support, IT license, no
changes to those as of right now. Um, office supplies, we added $500 to that. Uh, we went over a little bit. Dave Dave seems to feel that he's ordering for some other people, but he's going to tighten that up. Uh, we just included another $500 for that. Um, operating
supplies. This was also important. I added a little bit more here. um he's having to order more things uh than than before, but he's getting reimbured for those items that he's ordering. So, it's it's kind of a pass through because it's
just there to have. So, when people need certain items, we get them and then they pay us for those items. So, I just wanted to to add a little extra there for him. >> Yeah, that's always been a thing in operating >> and that comes into the service the service charges when you go out and do things on a service charge basis.
>> Correct. Yes, Commissioner DeA. >> Okay. So, for those operating supplies on that note when you say we need things you're talking about to do the service >> calls >> like little >> it could actually be items. It could be I mean we're all talking about machines
and stuff as well that they're >> things that they need to do >> parts and correct and people pay for that. >> Got it. >> Yes. >> Um >> do they I mean >> that's what Dave told me. They pay for it in the bill. >> We we Yeah. I'm sorry. Sorry. >> So, well, I know that like they'll come
out and they'll flush your they'll come out and they'll flush your if you have um like I have on demand. >> Yeah. >> And they and they water heater and they come out and they flush it, >> but there's a charge for that. Now, if they and they had to replace a part, but I wasn't char there was a piece that but
they're not charging for that particular piece. >> So, that's what I'm asking. Is it a flat service charge that they're charging? >> No. They're adding on >> They're adding on the Let's say it's a part. >> Would you make sure? >> Yes, I will make sure. But that's what Dave That's what Dave told me. I'll
verify. >> Yeah, because I know he buys like sto he literally like you know those inserts that have the the holes and I don't know all the names of the apertures and all that. He orders that for a part like Steve was saying for stove. They do
their service. People pay for that. >> Oh yeah. >> Yeah. >> We have a little sidebar over here. I just want for the record for transparency purposes. I pay what everybody else pays and so does Commissioner Lori >> and you too to have those to have those
things >> um flushed. Okay, just for the record. I want everybody to know. >> That's right. >> Thank you, Commissioner Lori, for bringing that to our attention. >> All right, the next one. Uh gasoline. You all know you're feeling your pockets like I am. Cost of fuels increase and as
the system expands, we'll need more fuel. Um, and for the for the guys to to run out further in the system. I mean, I tried to get them in here for some pizzas and they're they're out of town. So, you know, those guys are driving all over for the system.
>> Are we we are buying our gasoline now? Not not from the gas stations, right? >> Not from the gas stations. >> That's only an emergency. We are doing it through our fuel master system at the uh yard. >> And so, that does that reduce the taxes that we pay on it? We off we get
>> I I still think we when they drop that off I still I I don't I don't know but I would imagine there taxes involved with that >> but we but we can we can we get an offset >> yeah we submit to the state we get reimbured for that and actually birdie's got that >> she's been working on that I know it's
been the line item that we've had there we've never really done it >> we're doing it now >> so we got the right >> that's right >> that's all >> so that that cost increase 29% or 2500 um uh dollars from 7,500 last year to
10,000 this year. >> Fuel, you've got diesel fuel in here. Don't look like we've used diesel fuel and our trucks diesel. >> We have not, but the diesel fuels for they'll they maybe get it for cleaning and other things. Um small tools, the trencher. So, $200, but that's it.
Nothing more. Um natural gas purchase, we're going to talk about this more on the hedging and all that. I'll get a solid number. But based on last year's numbers, we had a huge increase um in January for the purchase. I've increased it 15% for this projection. As we move
forward in this process and work out the deal with FGU, that'll that that number will change. It'll change. >> But currently right now, we're over we're over budget. >> Currently, right now we're over budget. >> $30,000 in January.
>> Yes. And that was three months ago. And you look at the the the shortfall. She talked about the 21 to 30. That's why I put that in there at that cost. Dave actually wanted a little higher, but I didn't have much room in the budget for for it. So, when we get with Katie, we'll we'll tighten that up. Um resale
items. This is something that um part sales 25%. This was a number from last year, but demand for gas parts and appliances are increasing. Um, this is parts that we purchase and those parts are then sold to customers when needed as well, which is
>> that goes back to what I was talking about earlier where you said >> um >> going back to the operating supplies, >> operating supplies. >> So, okay. So, there is a line for the resale items and operating supplies are
things that they regular >> operating supplies, >> but they they do share that cost. I was told from Dave that that cost is shared on the building. So people reimburse for those. But I'll verify that with >> resale items when they're actually >> resell items are are those items
specific that we resell. We buy ahead of time and then sell those items. >> Those two different things. So, mayor, if I could just to clarify >> what we are saying, but you're going to verify is that >> the
some or all of the amounts in line 56 operating supplies as well as I guess 100% of the amounts in line 60 are recovered to the city under service charge revenue. Would that
be >> I I will verify. >> Okay. But we're talking about lines 56 and 60 potentially. >> Yes. >> Okay. But I want to know with this because if we got this and it looks like
last year we we spent already this year$7,000. We only budgeted 4,000 last year. Why are we why are we up so much this year over budget? So, right now you're over and again it says um
you're over and we're still only going a thousand when we know already this year we've spent and the year before we spent 5800. Parts are not going to go down. They're only going to go up. And then I want to know in revenue where revenue is
where are we getting that money? Where's that money coming back to us where they sold it? So, is there a separate shouldn't there be maybe a separate item for that? >> Right. Isn't Mayor if I may, isn't that
that's the service part of the service charge line. You're asking is it included in the service charge line or do we find it in a separate place? >> Yeah, it's not currently we don't find it in a separate place. So where would we
>> right >> because we got to know because we have to know that. So what we have to know is that whatever we're investing in buying these parts which are really for the customers not for our operating supplies. >> Correct. >> These are customers for the customer's
benefit. Where is that money coming from a business standpoint? Where is that money coming back into us? Right. So, so we know that we're getting that money back >> because I mean this year it says year-to- date actual it's 85,000 363 for
service charge and we adopted 30,000 >> so that's like >> normal is 30,000 right >> the 80 >> 85 is what we've had this year >> usual >> right so I'm just saying that there's been an increase on that and
>> but what I think charges >> so the mayor saying Here we have these parts charges for lack of better word. And what we don't know is do we find the
recovery for those parts in revenue number line 16? >> Well, the reimbursement for those parts from customers and that's the mayor is saying where we >> we should almost have a line item because I think what it is is it's it's locked in some of those other larger
numbers in the service charges and some of those other ones that have >> broken out. easily broken out. I I put a note in here for Dave and Steve and I to work on that. And >> we're not making projections like this is what we might be, >> right? Okay. Now, we got a pile of parts that are sitting there. Is that what's
happening? >> No, they're they're typical parts that they use for >> No, I don't want to hear that. They're typical. If they're if they go in and they're making a repair and then they have to go get a part, >> right, >> to make that repair, they come, they make the repair and they put it on
>> the build. >> Okay. So, if they're projecting that they might need this part or they might need that part and we're buying parts and stop putting them in a stockpile somewhere, you know, wherever, right? >> Okay. We while we used to have this, we use this, we might use this. Is that
what we're doing? >> I'll get with Dave to get that answer to you. I don't believe they're stockpiling. >> Kind of seems like, >> right? I don't believe they're stockpiling, but they want the budget to make sure they have it to go to go purchase it. But I will verify with Dave. I will verify with him on that. >> Yeah, because this year they spent
You're going to have to do a budget adjustment on that one, too. >> Yeah. Because they spent a little bit more. >> They spent more. And so, we got to just make sure that if they're spending that money that it's coming back, >> right? And that's and that's what they're telling me >> to look at and keep in mind from an
enterprise. You you have a business. You understand everything in this. So, if you're buying a supply, you got to be able to >> to get it sell that supply. That's right. >> Okay. You got to be able to make money on it. >> Well, that's why I was bringing up the increase in ser budget.
>> We just probably need to break that out >> and I'll work on getting that breakout. Steve and I and Dave will get that taken care of. >> There's nohere. Just tell us where it's coming back in the service >> and make sure it's there. I still want to I still think we need to have it broken out. if they can break it out, it
still needs to be broken out because we've got to be able to make sure that if we're buying that >> one way or another, we'll we'll make a notation and and break it out. Even if it's not in a specific line item, and even if it's in the notes, we'll break it out. It'll all match. It'll be even.
I'll tell you exactly where it's at. We'll we'll work on that. Um, mayor, if I could just about that line 60, the resale items. >> Um, I I don't think it's a matter regardless of what we budget, just to clarify, I
don't think it's a matter that they're necessarily stockpiling, but when they purchase items, they have to have a budget item for the finance department to to pay it from. And it does make sense that they are creating a separate
line item for those resale items so that we know >> what's help you know being used for the customer service and then what's um for operations. That that makes perfect sense. It's a simple thing of when you when you give the customer the bills, they pay for it and you and you now you
put the receipt that you got from pay with that bill to say that it's all, you know, it all comes out in the wash. But >> yes, >> you know, it's doesn't look that way from the way you're doing this. >> Okay. >> Way back in the day, they might they
used to even Didn't they used to even purchase appliances? They purchased appliances that they would resell to customers at at a discounted price >> because we could get a better deal for them. >> And that encouraged people to go to gas,
>> right? >> Absolutely. >> I'll take care of gas because they went bad. >> Well, the technology was malfunctioned. >> So, the next item is membership and training. I got with um with uh Dave on
this and even though there's no money in there right now, he's not sure as to why, but each employee actually um we we pay FGU and FMGU and and Shrimp and these are associations. Dave felt that we needed to add significant amount of
money in there for that especially with the new employees and and the membership. So, we added 1,500 to that item uh to make it a total of 2500 compared to $1,000 of last year. I've got a note in here. I think I had talked to the mayor about this the other
day. Um the percentage Steve and I are actively investigating the percentage um that was utilized and how it was utilized for the general fund transfer. >> We need to stop calling it a general fund transfer though because it's not a general fund transfer. >> Okay?
>> It's not because a general fund transfer cost allocation of the year that you transfer over. It's an indirect cost. >> It's administrative cost. So, it's really it's more a general fund administrative cost, >> right? It's it's for them being in the building here. It's basically rent for
being under and for using the finance department and that kind of stuff >> for them answering the phone, the finance department from Sheila paying. It is a reimbursement for administrative services and the overhead because >> if they were in a separate building
hiring their own staff, >> right? >> That would be a very direct and additional cost. >> But that's very different than a general fun >> which is very much like I think black and gas does. They off they they they perform completely
separate from the city. Um, so that's really the way it should be eventually. >> Eventually, >> much larger platform. >> Well, eventually that's their their own enterp. It's an enterprise. It's their own business.
>> This this individual this individual that that FG's talked to says he can do it. >> Okay. >> He feels very confident. >> Okay. Um >> again, so Steve
audit in 2024, did the gas department actually expend to um the general fund $113,000 >> for this year? >> No. >> 2024 audited >> 2024.
>> Uh yeah, >> it did. >> Audited. >> Okay. So last year though, it looks like it only expended 35,000. >> Yeah. Julie and I got together on that and it really that's basically all it can really afford. So that's what we did. >> So they're still in the hole from years
prior. Correct. >> So do we know what that carryover balance is that they still because I don't think that we have don't think we have ever forgiven that. >> Correct. Um I I don't have it in front of me but I can get that. >> Okay. So we need to know that and and so
we're still you know we're hoping that they can this year of course you haven't done that you won't do that till what the end of the fiscal year when you do the transfer >> the transfer in for administrative services correct towards the end of the year
>> and and and it may have been more and just updated in this spreadsheet only because there's a note in here that said that Julian Klein didn't think the enterprise funds had the cash balance point the transfer so only half was done. So, I don't know if that needs to be updated and and uh there could have
been more. It could have been, you know, 70,000 or >> 60. We just need to move forward now. >> Yeah. >> But we need to make sure we have an accurate We have an accurate number from 25. >> Correct. >> Correct. >> That but it's
>> So, moving forward on the next item is bond interest. I just held to last year's adopted budget, the 2026 budget 27,000. This is uh paying 5% interest. Um yearly payment we do for 1997 work on the 6-in steel gas man on Highway 17,
>> which is >> so if I could. Yes. So what I see >> there's no actual payment so far. When do we usually make that payment? >> Oh, some of them come in the beginning like the beginning of the year and I
think one comes in at the end of the year. I'll have to take a look. Um I know we did one already. Um, >> but it doesn't show anything for year to date actual. >> Correct. One one may come later this year. I'll have to see when we >> Okay. I'm just a little confused. If one already came earlier,
>> yeah, >> why as of May would there not be anything in that column year to date? May year to date actual as of May. Right. >> Well, one is for the sewer. I believe it was the sewer. The one payment I'm
talking about I think we made earlier this year was for the sewer um conver I forget what it is sewer conversion we may not have done the we may not have done the cash yet what I'm asking is hopefully we're not behind and we do have the money to make
that payment >> correct >> so let me let me ask let me ask another question on that so it looks like in 2024 we paid 25 2025 26. >> We're budgeting for 27.
>> Does it need to go up? >> Does it >> shouldn't be going up? >> It should be going down. It should be going down. And how are we paying that? And >> should we >> be a little more um aggressive on this?
Do we have that ability with this bond to pay it down? Because this is an obsolete system that we're paying. This is we're basically >> I I think and and I'd have to get with Steve and look at this a little further from a
>> a financial standpoint, but we have more money than just the million dollar set aside in our whole entire budget. If if we were able to get approval and looked at it and built a plan for you all to see it, it would be good to take all
available money that we have and put it into prime to get interest on that money. >> Another thing, I know you and I talked about this mayor, but is if we were able to create some sort of loan program for some of these people as well, creating interest revenue um for some of these
monies, that would also be helpful. We could look at a larger uh which I'm working on right now CIP but of course financial outlay as well saying hey we're going to pay this off faster with some of this interest that we're making on our money and get rid of the debt. Uh but that's something I whenever the
conversation needs to take place because this is enterprise and there's general >> it's different. Right. Right. Right. >> Yes. So in the past um we did it would be helpful to know to have in our notes
mayor um how much the bond is what the principle is um what the interest is and I forget is there a prepayment penalty because in the past um there was an
emergency expenditure and I think there was one other expenditure the general fund actually loaned the guest apartment or whatever and we can charge them interest. So, and one
thing I have suggested is although it doesn't I'm not sure it would really be feasible um is that when we float um part of the administrative expense cost that we do keep track of that and
that we formalize an arrangement with the gas department to make it a loan so that if it did become more profitable we could pay back the general fund with with interest >> of course and as well at a reasonable
rate I don't want this to happen but in the event that the gas department was sold then whoever bought it would hopefully pay back the general fund. So, that's just one more level of
recordkeeping. And, you know, we could either forgive the loan if we had to or maybe that's that's a very good um >> that's good because we do we you're absolutely right. We should establish that especially if we were to go into a a sale that we should establish that
there is a loan amount that the general fund has given to the gas department. >> And that is not my preference because >> No, it's not. Well, it's not, but it's clearly that we are benefiting our customers. >> It's something that we Yeah. >> But I guess
>> but to be fiscally responsible and do the right thing for the general fund, um, we could keep track of that and formalize that relationship with the gas department. And then I I would like to know um I don't remember the details of the bond
um but there's got to be a principle, there's got to be interest, and there's got to be bond terms. Okay, depreciation. If we go down to depreciation, there's zero for this year, zero for
this current year, but we had depreciation in 24 and 25. >> Yes. calculated by the auditors >> by the auditors. Correct. Okay. So, we'll add that in done that. >> This is not actual money. >> No,
>> it's just a depreciation. >> So, right now, continue to run down through the line some with where we're at. The one change we made up top um going back to 6,000. This budget is is off just $1,000, but there's still a
little bit of work to be done with the rates and a couple other things on here. So, I will bring that back to you all with the answers to the questions and the clarity on some of the line items as well. >> Okay. Do we have anything else on gas? >> Um, I do have one question. Wrote it
down blah blah. Um, so um I am just wondering this is only So very shortly after the Windixie enclosure, very shortly after the lock
side opening. Um it would just be nice to know in subsequent months if there's any assessment of what those openings and closures have done to our commercial revenue. I would be interested in
finding out and >> they were a big customer. >> Big gas customer. We discussed that the deli >> they cooked >> and they cooked and they and I think some of their other things might have been gas powered. >> They could have been hot water.
>> Yeah, I'm sure they use a lot of hot water. >> All of those holding pans for all that food was all gas as well, >> right? Which was a lot. So um it would be I think it would be in very informative to see the change in
commercial revenue because we had one >> and the other come back on and the school probably won't be up to speed. >> Actually it will come online maybe a little delayed so that we could actually see it. Well, and I don't know because
the old school was operational through the end of the year just like it would have standard like it would have been in standard for years and a new school is going to come on just like the old school came on. So, but it it'll be a difference to see if it's more
efficient. Yeah, that's more >> um but I would just be interested to know while we have the window at the grocery store. >> You can get that. You can get that from >> Yeah. So, what the way we got the the revenue numbers of course with was
reports Jocelyn had in there and the taxes and the gas usage. >> What Steve's going to do is get with her and just have the same report ran for the year prior and then I'll be able to give you all a delta between the two. >> We'll see it. And then mayor, did we get a final report on the extended gas
payment plan such as like how many people used it and have are they all paid up? >> I don't I haven't seen that. >> Um, we can we can get that information and I don't believe there was too many as it were. >> Yeah.
>> Um, so just make just make sure see where everybody is because by >> can you check on that too? that they might have had. It might still not be but through August. I think August would have been >> we said a max >> the max at August. Okay. So, we can be able to tell that. >> No, I would just like to know was that
heavily used, not you know, was it barely used? Yeah. How many people actually >> We'll do it. Pizza and lunch is here. >> I'm going to go on a um I'm going to go ahead and we're going to lunch
>> take a recess and we will come back. Bathroom session. Yeah. did not take a good time. We also You don't have to do all that. I just
>> seal it. Just to seal it. That's all. >> Okay. Okay. >> You ready? >> Ready. >> Solid waste. >> Yes, ma'am. We're going to start off with solid waste. >> Okay. >> Um going on to our fees, we did receive a letter um from Waste Pro. They're
increasing to uh 20 uh from 2467 uh to 26 uh 2667. And let me verify. >> I'm sorry. >> No, hang on one second. I got the notification >> increase from them last year also. They
went years without increasing. >> Yeah. So, we're going >> we're going to 20 2467 is the is the current um adjustment that they're going to be doing in October on October 1st. >> 22467
>> 2467 >> up to >> No, it is 20. That will be the new >> This will be the new $2467, >> right? But then that doesn't include our $2 administrative fee. Correct. >> Correct. >> Okay. But also, mayor, if I could,
>> we actually Aren't they requesting that we approve that? It's my understanding from the contract that we have to vote to approve that. >> This This is for budget purposes. We will be doing that when we do the rate increase and we go through that. That's that's going to be all together.
>> It'll all be Right. >> Right. But they don't just automatically get to start charging it. We actually have to >> correct and that's why >> they apply to us >> and that's why it'll be October 1. It'll be after we do our our rate increases. >> We'll approve it prior to that because
it has to go into our ordinance. So prior to it going into our ordinance, it'll have to come to us for approval to do so and then it'll go into our rate our rate. >> Yes. Approval. >> Yes. So, for the practice of putting together the budget, I went with a 24.67
plus the $2 um Cresant City admin fee for a total of 26.667 per month. We have 575 customers times 12 is our yearly total, which is uh $184,23. That's our total for charges for
service. >> That's a 2% increase. >> Just for reference, right now we pay 2606. >> Yes. So, I think I would put that on there. 2606 >> and the $2. We're not increasing our $2
fee. We're keeping that the same. So, >> we probably just need to make for for the public's per um understanding that we're not increasing that. And I So, you might just want to put that waste pro
increasing by the amount they're wanting to increase. And this will make the total the total be this amount. Does that make sense? So they don't so it doesn't look like we're increasing. Is that correct? >> Does this include picking up old
furniture on the side of the road on our sides? >> Yes. >> We have a couch over here. >> I just thought I'd you know let you know it's been there for a month. >> That's going to be in front of the magistrate.
>> It is. It is ran by it yesterday and I asked about it. It's going to be in front of the magistrate next week. >> Yeah. >> Okay. >> That property. That entire property. >> Yeah. >> All right. Because I was going to say um I I see not just that house, but other >> other items >> items that just kind of hang out
forever. >> What I'd like to see is commercial. So they're going to treat that they treat that separate. That's not under art. That's not included in this. >> They pay separately. >> That's what Okay. All right. Well, that's good to know. And I'm gonna I'm gonna talk to them as well. I would like
to see more tagging of things. If they're not going to take it, I would like them to notify people as well, so people don't feel like, "Oh, I put it out. Nobody's giving me nobody told me they weren't going to pick it up." >> We should see different tags and even color tags based on what type of track >> animal control.
>> Oh, no. They're just passing through. >> Go ahead. >> Wait a minute. Um, I'm not really understanding here. Commissioner Rory says that our current bill is >> 606 >> for for trash pickup. Correct.
>> $24. >> That's that's with the $2 service charge. >> So it's 246 is what they currently charge us. >> Correct. They're going up 52 cents. >> Correct. >> Or 51 cents. Sorry. Six. >> 2%. >> Okay. So they're they're they're going
up. The increase is less than a dollar. >> It's 2%. Yes. Less than a dollar. >> Okay. Okay. I've heard something different. So, the increase is less than one full dollar. >> Derek, on that that letter they sent you, did they send you the worksheet
that shows the determination of the CPI? >> I'd have to go back, but yes, I they did send me that worksheet. >> I can't. Yes, sir. >> They've in the past not done that correctly. >> Yes, sir. >> Well, and any error should be construed,
you know, if it's favorable to us. No, it was not favorable. >> If it's not, I should just I can't >> The next the next line item is the garbage contract under expenditures. Um, and that of course is the 575 and that's
at 2467 for 12 months. I will forward that other determination letter or it's I believe it's like an Excel spreadsheet. I'll send it over to you. >> Yeah, I just want to double check for >> Yep, no problem. And then of course our uh there's $13,800.
Uh I verified this. This is a month cost back to general fund. Um the the line item in here for the 115157 was what we had in last year. Um and um and this year
this year I went in at $2. I just put this 575 * $2 time 12 months for that calculation. >> So let me let me ask you this solid waste fee is that what through the is that what
and the garbage contract those are two different those are two different >> two different ones. >> Are you talking about the solid that that actually so one of them is the if the revenues is what we're bringing in and the other one's I'm sorry cuz I'm like where are the
Okay, I see it. I apologize. >> No, no worries. And and if you break them both out, the one below for 13,000 is just a $2 admin fee. That's it for the 575. >> I was looking for expenditures and so Okay, >> this is the probably the most straightforward one out of all.
>> Yeah. Yep. >> Yeah. Okay. >> Did anybody have any more questions on this? And are they g are they giving us an are we giving them a number of households every month? >> Yeah, that is that okay email every
month. I don't know how many customers >> I just want to make sure that that because there was for a while you know just back 20 years ago but we they just picked a number and we stuck with that number for like a whole year and it was way off but yeah so I mean because we're and we're billing every month so we should know what they should be
>> billing us. That's good. I just want to make sure that like it's cuz sometimes things don't don't happen like that. >> Okay. Any other questions on this one? >> I just have one and I was going to look with Joselyn, but do you all know when
this was um if if it's ever been put out for bid again or when the last time >> can't you can, but >> we're not going to find anybody. >> They they've got a contract county. They've got a contract for the county. >> Okay. and for the landfill.
>> And for the landfill tipping fees for >> I wasn't sure. I think we're three years into this new >> We should be three. I think we did it in 2023 is when the last time we had the contract >> and I think it's a 5year contract. >> It's a fiveyear contract.
>> It's but now mind you, they they were the ones that gave us the advice that we shouldn't bid it out which, you know, kind of seems interesting that they're telling us that we shouldn't do it. I mean, we could always bid it, but I don't think we're going to get anything cheaper. There's
nowhere else around here. And they do all of Putham County. >> Okay. >> And they run the landfill. >> The only thing that you would get is from Northwest Valuchia because they service Seville and Pearson. So, um, and that's not wast I mean, when we're at the annual convention, you can talk to
the people and they're always like, they'll do anything. And I'm like, yeah, okay. Well, how much is it going to cost? >> Yeah. Everything comes with a dollar. >> Yeah. >> Yeah. Although I do think that I don't know why honestly in my head I don't know why our our prices are going up this year when they're running one less
truck not having a recycling truck. Um >> price of price of fuel for them. I mean I imagine that's what they're going to come back. >> Well, we pay for Okay. We pay for an additional pickup in Crescent City. So they do Monday and Thursday whereas in the county you only get one. But we also
were getting recycling picked up on was it both days? No, just Monday. We're picking it up on Monday and then we get waste pick I mean yard waste picked up >> on Wednesday. Yeah. And then white goods they can pick up any any time during the week apparently. Um but so that's one
less truck that they run on Monday. So to me that's a big savings on their part. But that's um something else to consider though is and we know we've had this discussion before that if they continue to increase
um while this is not you know a big increase but it's still an increase. Everything is an increase >> that you know and and the and the public here for for the most part has spoken and said they want that Thursday pickup. That's an option for the community. Yeah. You know, because we get a couple
of people say, "We want that Thursday pickup." And they're speaking for the entire community. >> And you know, how many people seldom do I ever put something out on a Thursday? >> It's a convenience. It's a convenience fee >> uh con convenience pickup that we have
here in town. Okay. >> But that's always something that, you know, for the community to know that we can always revisit that. My my biggest question is I thought all commercial customers should have a dumpster and not use curbside pickup and I'm thinking
specifically about the laundromat at my house. They pile up a huge pile of trash out there >> pretty big >> every Monday and every Thursday >> and to me they're a commercial customer. They should be paying and having a dumpster. I don't know that it's required that they have a dump the dumpster fee is very expensive and so
for a small business >> do we have a commercial um pickup fee that >> that we don't No they pay that privately. >> Okay. But that's do they pay if they don't have a dumpster they pick up they pay to have it picked up curbside?
>> Yeah. >> And that's something that they do separately. >> They have to do separately from us. >> Okay. But but then there must be a different truck that comes and picks up when they do the dumpsters because the dumpster >> it's a dumpster truck that comes and picks up when it does the dumpsters and
they pay for that. We don't that's not part of this >> because we get franchise fees off that. >> Yes. >> But I'm talking about they put that out on Monday and Thursday and it's a big pile of trash and they come and pick it up just like with our yard with our regular residential waste. So I mean I'm
just making sure to me that's that's that's a lot more money and they should be paying for that. They're not paying, they shouldn't be paying $24 a month like I do. >> Well, we don't know. They are paying more because it's a commercial pickup. >> But how will we how do we know that? Because I mean >> because they're doing that, >> it's not going on the utility bill
>> because well I you know I don't know that's something that Waste Pro and Waste Pro has gotten so sophisticated with their monitoring systems and their knowing where those trucks are and they have cameras on them. So, if it's a commercial, they'll go right if they
haven't paid for it, they'll go right by it. That happened over here at the chiropractor's office. He didn't realize he had to pay for commercial pickup and they were going right by it. I'm pretty sure that happened. That's what happened. They were going right by it. So, if they don't have that account,
they don't automatically stop. But that's something that we not involved in that they have to do. And if they have having issues being picked up in their commercial property, they have to set that up with um with Waist Pro. And there it isn't it is an a higher expense
that Waist Pro charges. And >> um >> because like our restaurants down here, the restaurants down here, um they put out, you'll see they put it out, but they don't have a dumpster. They're not using a dumpster. >> Fruit Bananas has a dumpster. Um,
um, Blockite, they have a dumpster. >> Blockite has one, >> but I don't know that it's it's not a requirement that I'm aware of that you have to have a dumpster in order to have commercial >> because you have you have to have a contract on contract >> because we're not putting that on our utility bills.
>> No. >> So, there's not a commercial fee. So, if you're not paying fees, so they're not paying residential fees. >> Should not be. No. >> Okay. That's I just want >> and they'll they'll verify that address too when they set that up. >> I just want to make sure that yeah people
>> I just wanted to follow up on Commissioner Lor's comment about maybe commercial should be required to have a dumpster was very expensive as well. It takes up a lot of room. >> Very not everyone has space for a dumpster. And as well, if you live near
them, dumpster pickup is very noisy. >> And so, you know, they kind of >> depending on the business, they can smell too. >> If you live close to >> saying a dumpster is not always the option. >> It's just to me, >> I would do away with our dumpster back
here because it's just a local dump. I just would prefer it to instead of being all the trash every day twice a week. >> Plus, yeah, plus the only trash that comes in there is from the from the garage next door, >> right? But anyway, if things are piling
up or they don't smell good, it's not really a code issue. >> Okay. >> Yeah. >> Right. >> Thank you. >> Next in your packet, I believe, is wastewater. >> Okay. Very good. So, we'll move on to wastewater.
Um, looking at our wastewater charges, we're supposed to do a 5% increase on wastewater every year. This will also be um part of our rates change. Um, last year we budgeted 521,94 $498. 5% increase for that line puts
that $26,000 increase from last year to $547,573. >> When did you pass that ordinance with those rates? um last year. >> No, no, the original one. >> That was the recommended rate study and I believe that was in 2024, 2023.
>> It was before I was elected. >> 2020 must have been 2023. >> 2023. >> It was 155 and then it dropped to five. Is that >> I just wanted to make sure that we're following. So, make sure though if you would, Derek, if you will look at it and
just make sure that it's it's each year following and then it doesn't have a stopping year. Yes, ma'am. When we catch up, but I don't think it >> I didn't see a stopping year. The only thing I saw was there is one that goes every other year. This one is >> that's going to be our occupational. Yeah, that's that's our business tax.
>> Correct. But there is an ordinance that we passed that has these water and waste water rate increases in. >> So the cut in charge moving forward the cut in charge um we held the same as
last year um that's 800 per customer. And so our total charges for services this year sitting at um 550773 of course a 5% increase because of the
increase in the wastewater charges. So total revenues at 550,773. >> So what about the the 10% sales for maintenance? That should be the um repair and replace fund. >> Yes. And that's where we posted in
wastewater repair and replacement fund. I had a note for Steve to check on that. >> Yeah, just not budgeting anything. >> Although I mean it really shouldn't be budgeted as goes into the parent place fund. >> Correct. I mean it shouldn't be budgeted
as a revenue >> and we have a year to date in that line. I mean again I have I have Steve I have a note here for Steve. We're gonna go and look at that but we've got 36,000 intake on that this year. Right. So it does come in and it should be there and it's build on our >> our utility bill separate as a 10%
correct placement fund but it so it should come in but it should not be spendable. So it shouldn't show up here >> because it's not a revenue for us to spend. It goes into the repair and replace fund >> but it's got to show it has to show balance. So it has to be there has to be
>> yes somewhere you got to put it somewhere >> right but it should be >> especially if it's going into that fund if you need to set do a separate you still have to show it as revenue >> same thing on water >> and then a transfer >> we water yeah
>> um so moving forward um as far as the grants this year um we've got the Bay Street um I'm sorry The Bay Street CDBG we put at zero dollars. Um, >> right. Time, >> right? That was to take place this year
and it's still on track to be done this year. I've talked to Keith. So, it's out of next year's budget. I'm sorry. >> Waiting on the generator, >> I believe. So, >> that's what the letter sent to us. >> Yep. So, what we have in wastewater is we did get a $50,000 approval for the
design for a wastewater treatment facility improvements of our state appropriations. So that is in here at $50,000. >> So total revenues and grants this year are are at $600,773
or 14% increase from last year um for $76,75. >> Mayor, I have a question. Uh-huh. So for the for the gas department budget, we had yearto date May
actual. For the solid waste fund and the wastewater fund, that's a column we don't seem to have, which is yearto date actual. >> Yes. And I apologize. I I I have it up here for you all to look at as we're rolling through this. Uh, when I printed it this morning, I realized I didn't
have that line or that that line in. So, I'm sorry. >> Okay. Because those I'm not going to be seeing that. There's just no way. Okay. >> There was a print error for me. If you have a question on the actual, I'll be more than happy to tell you >> that if you would to the revenue, if if
you would on that for the actual >> so far this year for the wastewater 378,645. Awesome. And that is up through May. We have two months. May >> Yeah. >> Yeah. We're looking We're looking We're
looking good. >> Okay. >> Yeah. >> All right. So, we're getting down to expenditures now. This is under personnel services. The comments on the side, y'all can see. Um, we've broken this down for a third for Keith Harris,
our director, the open position at $17 where Ronnie Grant retired and uh and then we have um we have Mr. Van Dyver out at the plant remaining twoth3 for Keith Harris allocated public works, streets, and water departments. So, the allocations are correct here. Um I
believe because we had a change in staff, that's why it went down, but there is a 5% increase for the staff that is still here that is included. That's correct, sir. >> Correct. >> Okay. Thank you very much. And all of the associated time with that um has uh
has been uh adjusted as well. There was uh overtime cost at $2,000 that I put in. We haven't used a lot out of this budget for that, but um Keith and I both feel that it's necessary to keep that in there um as we do work with the
wastewater treatment facility and other other jobs that may need some of that overtime. This >> go back again. Let me go back to 17 >> 17 line item >> 17 staff salaries. You're reducing it by
$5,800. I understand what you're saying, but you also hired somebody and while he might not be making as much, um I I'm not sure that that's that we should be doing a reduction in
the salary dollars there. >> Okay. >> I don't know, Commissioner. What? And and is Jason not included in this? Jason, any portion of Jason's salary is not included in this at all. So he's water. >> He's under water. >> Water completely.
>> Okay. >> You guys calculated. >> Yeah. I just want the actual salaries. >> Yeah. What we have what we're right >> but >> how many people how many people in in this >> and the only reason it went down mayor is because Grant or I'm sorry Mr. Grant
Mr. Grant was at 22 or $23 an hour something like that. And the replacement that came in for him is at $17 an hour. >> I understand. >> Yeah. That so we just put the actuals. I had Steve put it, but if you'd like me to increase it back, we can for sure. That's not a problem at all. We can do
that. I just it it just seems odd to me that we had those three employees back in 2024 and the salary was 695 and then it jumped up to 884 in 2025 and then we jumped it up
to 92 in 2026 and even though Ronny's was it wasn't that significant of a of a jump and I I don't this these numbers just Even if you go back to 2023, it was 39,000 >> historic numbers.
>> Yeah. So, I'm just not sure. And and you don't want to underbudget yourself in your salary. >> Um just depending on and maybe maybe what you need to do possibly is take those dollars and put that put that into
your overtime pay. Where are you on overtime this year so far? >> Sure. that we know of >> in in the in we're we're so water we're over and I'll explain that when we get there. Here we're not we're we're under this year. Um but we put the dollars
back in. Um we've only expended $272 out of a $2,000 budget from last year. I put the $2,000 back in this year um only with anticipation of some other work being done at the plant. And and I also have an initiative to do some cleanup
over there that we may need some extra dollars on. I don't know when the last time y'all went over there to that plant, but it it needs a good some good elbow grease over there. >> Yeah. >> It's in bad shape. >> Yes. >> Just from a cleanliness standpoint. >> Yeah. >> So
>> So is it over here? Really? That building is >> the one that's the one that's not being used anymore. >> Yeah. It's it's not in great shape either. Um, so I don't know. That's that's I'm making a do that. I just wouldn't lose those dollars
>> if you if you don't have to. >> Yes, ma'am. >> Okay. >> But that's that's me. I don't know how the other commissioners feel about it because I'm just one. But >> I mean, we can we can adjust that back. can be one thing that that we have to take in consideration and thank you for
bringing it up because I didn't think about it till just now and that's what this whole process is. Chip Chip could retire next year. >> So could Keith >> I so could Keith I've asked Chip um and we had a meeting on succession planning and everybody got a succession plan
internal policy for the directors to talk about. Chip was on there. Chip doesn't plan on going anywhere right now, but Chip is 70 I think 71 uh 70 years old. So, >> are we saying this? >> We all Yeah, we all never plan to go
somewhere. >> Um and so we never know what the future holds. >> We're all going to the same place. >> Should somebody should somebody end up should somebody end up retiring, right? for whatever purposes, all of a sudden
they decide to retire. You know, you're just leaving yourself because, you know, to replace, >> right? >> The plan and and this is strategic um discussion because we've already we've had this discussion. Jason is dual licensed.
>> The the plan is to increase Jason's pay without having to hire somebody, but we may need to hire somebody. We just don't know. Anything can happen. So, I agree, mayor. I think we should probably put the dollars back in. >> Can one person run both? >> I agree. I didn't think about that. I'm sorry. >> Can one person run both plant?
>> Absolutely. As long as they're licensed that can do the testing. That's it. That's all you need. >> Physically like actually >> physically. Yes, of course. >> They don't have to be present most of the time or anything. >> Yeah. >> Because we have a scattered thing, right? So, it's removed, >> right? >> Um, mayor. Yes.
>> So, I agree with you. I don't think we should underbudget on Sally. If anything, we should overbudget because these are essential personnel for water, wastewater, all public works are absolutely essential. So, yes, we're better to over
Thank you. >> Okay. If we were to add to the 92 that was budgeted last year 5% it would put us at $97,508 for an increase of $4,643.
I went ahead and made the change Steve just in there and I'll make a note. We'll go back through it later and adjust the other items. >> Yeah, the notes in there already. >> Okay. Do >> we have anything else on this page? So then we go down to operational
expenses. Um, this is something I've talked to Keith about. I think probably since the second month I was here, we've looked at it. Um, I even talked to outside entities that do the same work, other directors. We're using a
significant amount of bugs. I'm not sure why we're buying so much bugs, but we are. We're spending a lot of money on it. >> You've seen the >> I'm sorry. You've seen the reports though from them, right, too? >> Yes. >> They're not healthy. It's not healthy. >> The bugs aren't eating everything that's
like they're supposed to. >> Well, are the systems healthy? I mean where's >> No. >> We are. >> When I brought it up, Chip brought up to me that it would not take much of an investment from the city side to get us
to a certain classification that we would be allowed to sell um our our bio yeah the biomass. We spread it out. >> The problem is is that we don't have enough space to do a spread out. Um, and
we don't want to pay for a hauloff, but if we got certified at that other level, we could we could find it. We could figure it out and we could actually sell the material. There's companies that will buy it for, you know, uh, >> compost for fertilizer.
>> So, I'm I'm going to work into that. Going to bring that back to you all later. That's something because 70,000 a year, it's a throwaway really, and I don't want to do that. I think we we could be able to make some money there. And it keeps us from having it keeps from having >> it's not a throwaway.
>> Well, you know, you know, >> I know I know because we're we're already saying that it could be cost prohibited for us to we don't have the space to spread and nobody really >> we they fought that down here as far as you know this is a class B bioolid, >> right?
>> Um and so >> then it goes into some other county that somebody's buying it somewhere else, >> right? >> Um so we don't have that. and then to haul it somewhere else. So that's a cost also. So what's your best alternative or
least expensive alternative that is still efficient for our system, right? >> And so that's that's where we are. So if it turns out that that the bugs are um you know and it doesn't I mean it looks like when you say other professional
services is this only for for the bugs? I mean this price that we're paying is only for >> only that's only for the bio bio biofermentation lab services. Yes. And I have um when we got the the the money
here for the design on the wastewater treatment facility, >> it was brought up with them about that there's new innovative technology that we could get designed for the future that could possibly eliminate um the use of that. >> Okay. >> Uh through other means. So, we'll be
working on all of it and things that I'll bring back to you all. >> To me, it seems like it's working. It's It's worked for how many years now? >> It has. >> We're not hauling off biolets. >> Correct. >> Um, which when we built that plant in 1999, we didn't realize that was going
to be an expense. And for years, we tried to figure out what to do. So, we weren't paying 30,4 $50,000 a year to haul out because that's a throwaway. I mean that's contracted and literally you're throwing it away howling it to a landfill. So I mean this is a
>> this is an option and I mean if your date actuals are correct it looks like we probably aren't going to spend that this year the 67,000 unless somehow it's going to be really expensive the last four months. So I mean to me find another option but it's working for
now. >> Yes. and and we've got in the budget >> and and check if you would with him just for just for our ownformational purposes in 2023 why it was you know $30,000 more than it was in 2024 what happened then
>> honestly I believe that has to do with cost of material but I will get the answer to you there was a huge spike in some other >> okay if you would ask >> I will find out >> um mayor if I could >> yes so this was an innovation of Patrick
Kennedy's sometime before he left. And I I just have to say it this is far preferable to shredding or hauling it away. No one there were issues. Um, the
longer the hall is, the more cost. >> And I believe some people were very unhappy that our waste was being spread near bodies of water. with the increasing population and the increasing
pressure of nutrients on our the lakes in this area and the rivers. Um I'm not so sure that I mean this was seen as just a godsend and a big improvement because there were
a lot of objections to this. No one wants it near them >> because we're not class A to create class A is very expensive. Um that's why people want to spread less than class A bioolid, you know. So um
>> I don't know unless there's some other company that is more competitive where there's new technology. Um I I'm happy that we have this. I people were not happy with what we had before and I don't blame them. >> I made a note.
Um so moving forward um no change in any of the audit numbers, telephone, utility, rental leases, auto insurance. >> The electricity looks down for the >> uh as far as the usage. >> Yeah. >> Yeah, it may be down, but I I did not
make any change to the budget. The budget's staying where >> Yeah. rates gone up. >> Yeah. >> You know, we're going to go back to the audit. So in here, you're charging $10,000 for the audit. Mhm. >> Um look at your revenue based on that
and the amount of I mean the amount of employees that we have in gas and to be audited and then in the audit up here in gas we're >> you got it 6,000 >> right? >> So I think you need to be Yeah. What is
we need to have a formula what is it what is it based on? Well yeah because this is more I mean gas gas has higher revenue >> and we've talked about it. I I I've asked for the breakdown of how we come up with that and I believe Steve has a calculation for it, a spreadsheet for
that for the spread out of the of for the calculation of the audits that we insurance and all that. >> Need to just re reook it. >> It needs to be equitable across >> I agree and I've got a note on here to look at that >> and and what we've done last year >> based on revenue would be
>> Yeah. Are you agreeing mayor that >> not necessarily because you have more revenue and less employees. Some of those should be based on the >> employee. So I think it's staffing and operations. >> I agree. And I know what happened. We came in. I came in last year. We went off of the year prior and so this year
is going off of last year. So it's been a a snowball effect that make sure that >> we'll look at that for reallocation. >> Um so moving forward um building repair. This was actually up significantly from
last year. Um there are needed repairs to the facility. It was constructed in the early 2000s. Um we do not have a deferred maintenance program right now, but cost for repairs are increasing for materials. So we've already spent as of
May to May on the facility on the building $4,400. We budgeted 2500. Um I've increased that by 1500 this year to to $4,000. The next item is vehicle repair and maintenance. Um, this includes $2,500
for tires and oil. There's only one vehicle for that, um, which is Chips's vehicle that this is for. I kept the same line item that we had last year. We spent almost $1,400 this year. >> Well, wait a second. >> Sorry.
>> We spent on one vehicle on tires $2,500 in oil for for that for that in oil. That's what include that's included >> on one vehicle. Number one, he doesn't drive enough to >> to go through. How many How many sets of tires did he go through?
>> I think just one, but I believe >> before we only spent $1,300 the other day on >> Right. It's just what's in the budget for tires and oil. Um, but we've only spent to date, 1300 this this up to May. >> This is repair and maintenance. This is
maintenance. >> Yeah, vehicle repair and maintenance. Let's just make sure that when we're putting tires on these vehicles, I mean, I'm I have trucks and we put tires. We just put a set of tires on and we sure didn't pay >> that kind of money for for you know,
>> and oil changes are about 100 bucks a tire. >> About 100 bucks a >> 6,000 5,000 6,000 miles depending on the age of the vehicle. >> Don't we do them ourselves? >> I don't know. Are we doing them ourselves now? The the oil changes? No, we're not. >> No. Okay. No, we're not.
>> I didn't know. Maybe not. >> Yeah, I don't think so. And when I Well, we'll get to that to the lease vehicles. They'll they'll take care of all that. >> We probably could get together and show them. They'll tell you where we bring our cars and our trucks and whatever for
oil and tires and Yeah. >> It does not cost this cost this kind of money. >> Okay. >> And we and we buy the good stuff. >> Yes. >> Yeah. >> Okay. equipment repair and maintenance. Um,
this is really important. There was a lift station that needed repair. It cost the city a lot of money that and and the city wasn't ready for it. Um, I included an additional $26,000 for that said reason. Lift station repairs needed throughout the city. I know that
there are some uh down at Fletcher Park. We have an issue with the lift station down there. It's why the bathrooms been closed. Um and then of course any unforeseen um unforeseen items that come up um the system is aging and without full
replacement some of these things are going to they're going to die and we're going to have to have funds to replace some of them before they die. >> Yeah. >> I'm sorry. >> Can we replace some of them before they die? >> Well, that's the that's the plan. >> Okay. But wait a minute wait a minute. So, is there going to be some place in
this budget that we are going to have an estimate of when these things are aging out and how much they're going to cost and when those costs will be needed? >> I can work on that, but right now we have to have a placeholder in there. And so, balancing the budget with what we
had, I put the extra 30,000 or 26,000 in this line item because previously there was only 23,000. We've used this year 17,000 up to May out of the $23,000 that we had budgeted last year. I talked to Keith. It it is good to have a buffer in here in case something happens because
they don't necessarily need full replacement, but you'll need to replace parts and pieces and the work is very expensive. You need a capital improvement replacement fund for this that we are >> and I'll get with you. >> You should have and you should also have
an inventory and >> you should have a running inventory aging so that we know I mean there's no reason why we should have any of our lift stations >> be subject to >> correct >> sudden death or to have to be pumped out
several times a week. Mhm. >> If I could be recognized. Yes. >> Okay. Since I came to this commission in 2019, there have been several city managers and I have asked and Harry Banks agreed
with me and I think Commissioner Lori has agreed with me and our very briefly here finance director Dale Walker said he could do this and he showed us I think it was Keystone Heights book that had this We desperately need for long
range planning and to do budgeting. We need what the mayor just said. We need the capital improvement plan that includes I think it's supposed to include all equipment that costs over5 or $10,000. Mhm. >> I was promised, the whole commission was
promised a schedule of a listing of that equipment and when it would be expected to age out so that we could appropriately budget and judge our expenditures from the better place plan. And this has been something that has
just not happened. But um the lift stations are one of the most key things in the entire city. >> And and just so this group knows, so I I dug in the computer. I did find the digital copy of the CIP that was created in 2022.
I've taken that extrapolated out to 31 from now and I've started filling it out. I've sent it also over to Jason Shepler and to Keith Harris to fill in the the wish list. The items for the um the items for the uh the lift stations
will be added. It's of course uh something important for years moving out. Paving, asphalt work, all those types of items are are things that are going to be on there. And then of course our future appropriations are the jobs that we have kind of cycling right now. So, I plan on having that to you all
very soon and we'll definitely have it approved. The plan will be approved with our budget this year. That is my goal. So, we will we will have it. >> Mayor, if I could, you know, even before we get to a wish list, what is our essential equipment that
>> Well, that's what I mean by a wish list. It'll be all the essentials. Everything will be there that you're looking for. >> I don't see any of it. To me, a wish list is something optional. What I am very keen to know about and I would imagine the rest of the commission would
be is what is the essential operating equipment and how you know what life is left and how much are the replacement cost. >> Yeah, those are those are key components that are a part of the CIP which would be under your equipment. But the CIP is
in fact a wish list of the items that you want to complete years out. Whether they're a large project, you could you set the threshold 25,000 or more. >> I think what she's I think you're you're talking really kind of about two different You're talking about two different things. She's talking about
what we currently have, our equipment that we currently have in place >> and having a capital improvement, maintenance, repair, whatever um budget for that so that we have an idea. Yeah, >> you're thinking I mean >> that's a deferred maintenance program.
>> It's a Exactly. So what you're talking about is all the all the projects that we would like to see happen in our city. what she's talking about is something that should be ongoing and y'all should have that in those departments >> and we've started so you know internally
>> commissioner um you're absolutely correct but before the city manager continues I just would like to bring us back to um reality right now I I don't think it's a good idea to use the words
wish list in particular we have on the upcoming November general election ballot um a property tax reduction um constitutional amendment and my point about that is um I don't think the
sentiment of the general public is really with us to be talking about wish lists if we if it's things we need in the future that's one thing but uh public sentiment and we are governed by
what public wants to do I'm just you You know, I understand the concept of a wish list, but I just don't think it necessarily fits with what the public wants to see. >> Let's not get hung up on words. >> Use that.
>> I won't use that. >> It's going to be in line with objectives and goals that the city has already set forth, things that are in the master plan, things that are in the CRA master plan and comp plan. So it >> I think what bothers me though is it seems like we just let things go until
they really die. It's like we are we are not really on any type of maintenance schedules on anything here. >> Correct. >> In the city. I mean this is just one thing like go cars, trucks, whatever, >> right? >> Um crisis management.
>> Yeah. Is crisis. We don't reactive. It's reactive. It's reactive. We have >> most of the money to replace all this stuff unfortunately comes from the better place plan it seems and that's not really what I don't I don't think
that's what that's for is this crisis management that we have all the time. We bought more trucks and and and everything else out of that budget than anything else that I can see where where I think we better spend it in other places. I mean, you need a lot. Okay.
But but one thing you need to do is learn how to put things on >> schedules. Okay. Go check out the O-rings. Go check out the oil. Change the oil every 6,000 miles. >> Sure. >> We just don't do those things. So, that's that's the only thing I have to
make a phone call, by the way. >> Okay. >> But I I I totally agree with Commissioner Martin. >> Um that the Better Place Plan was not meant to be a slush fund. And I I had this conversation with Mr. arrived multiple times. It should not be something pops up and we go and do it,
but it should be for funding infrastructure projects through that extra bit that we can't afford without it. It's a, you know, it's a onecent sales tax that's added on to all of our bills, you know, with everything you buy and it's supposed to be for infrastructure and it's supposed to be a bonus, a cherry on top really.
build us sidewalks that we couldn't afford before and not but not pay for lift stations and trucks that we should really be planning to pay for out of an enterprise fund when that's what they're for, right? The enterprise fund is what's using these and so we need to
have a plan and that starts with inventorying all of our lift stations and let's know the age of them and know what's going on, right? Um, so I mean, and that's up to your guys, but we need to have that because I mean, we should know if we need to expect to replace three pumps next year and and then three
pumps after that. I mean, that we can plan for. If we wait until they all burn out, then it's too late. And that's why we used the better place fund. And that's not I know that's not why I voted for it first time or the second time. It was not the idea behind it. It was for
better parks and libraries and sidewalks and all those things, >> right? >> And we're not beating you up either. I mean, this is not this is something that you It's been It's been ongoing for years before me, before most of us as commissioners, they've never been
reactive. >> Yes. And so I think going forward though that we especially >> in light of what we're possibly faced with, Sure. We need I I I still believe we still need to have goals and objectives. We just because things
happen doesn't mean we we get stagnant. We need to continue moving forward. We need to figure out a way to make sure that these enterprise funds because this is where it's going to affect general revenue is what's going to be affected. These enterprise rise funds need to be
able to make sure that they can sustain themselves >> they're generating >> and not because there will not be those monies to take out in the general revenue. If we do have additional in the general revenue that's where our goals and objectives can be improved. >> Okay. >> But that do y'all feel that same way?
>> And I mean and enterprise funds are paid for by rateayers, not by citizens. It's not by residents. It's the people that have those services. If you don't have water and sewer and you're in the city, you're not paying towards that. So, it needs to support the services that it provides. And if you have gas, you
should be paying for the system to run it. So, I mean, and that's how they that's why they're different um between the >> and the general funds like what's going to be under pressure if things change with property taxes. So, we need these things to be able to handle themselves
and stand on their own. So, I would recommend as soon as as soon as you can, you Jason Shepler, Keith, um, Jason, whoever, y'all go out and you start making an inventory and assessment
of all of these lift stations, everything that we have, making sure that they have proper gener generators, too, right? Because if we have a storm, just like we did two years ago when we had those backtoback storms, I was out there with the guys. They were having to
go from lift station to lift station >> with generator with a generator just to pump them down daily and I was getting phone calls from the residents. Can you get over here and get us pumped down because they didn't have a generator on, >> right?
>> If I could, this was a question I never got answered the storm. >> Yes. >> But you said the the inventory and the assessment of the lift station. The question I never got answered was, "Do we have enough generators?" >> Well, >> no, they don't allow generators. >> No, we answered that. They answered that
that we never have enough generator. >> I mean, really, >> okay, >> that would be an ideal world, >> but that's a lot of money. And we're not going to be able to I mean, we didn't have any >> How much have they cost in the past before? >> It's not necessarily in an ideal world. I mean, I think it could be done. What >> how much did the generators cost for
each one in the past? >> It depends on the size. It really depends on the size of the lift station. What was the worst case that y'all don't know? >> No, I'll find out. I'll find out. >> 60,000. >> I was thinking how much? >> I think 50 or 60. Didn't we just buy one
in the last year under CDG or something? >> I think they're replacing one, but that was for the That's for the water plant. >> I think that was for the water. These are individual. >> These are these are smaller, but I'm going to find out. I've got it listed here. >> Okay. So what I didn't get an answer for
was how much are the generators. What I would like to see us do is assess what can we afford in generators to put us in the best position we can be in so that we are not in a crisis mode. Um just I
mean in other words what's the most feasible best condition so that we're not in hopefully in that bad position because other communities I've seen if your lift stations fail >> people
destroyed >> well they can become fightable and just but the thing um the other thing is when you're doing our wastewater water renewal, our wastewater license renewal.
Don't you have to have a plan as part of that for the emergency? >> Yes. >> And and we're actively about 90% >> done with that plan. >> Piggy back on that. Should be easy to be able to inventory and tell us the ages of those. >> I believe all that work is actually
being completed right now. >> Sorry if I'm not staring at you. We're not making eye contact. The sun behind you is too bright. >> Sorry. >> All I see is black outline now. >> It's my halo. Yeah. >> No, it's not true.
>> That's an illusion. Um, okay. So, let's go to other other charges. 15,000. You've got on here a new electric security gate. >> Yes, that was something that you all were approving for us to do um this year
with the funds that we had in there at 15,000, but that was not approved by the the Yes. the D. >> That was the inind project. That was an incind project that was not approved. So, I left it in here because it's something that we need to have there at that facility and we already have the
quotes and everything ready to go. And if it's uh something that we can keep >> Did we Did we actually put that into last year's budget? >> We did the $15,000. Yes, ma'am. Yes, ma'am. >> For the fine, but not necessarily for the new security gate. >> Not security.
>> We're adding on there. That's the new security gate. Yes, ma'am. Where's that 15,000 for the fine? That's in last year's budget. >> Oh, yeah. Around here, >> but we're on this year's budget. So, we haven't paid it yet. We haven't done it. >> We haven't paid it. And that's I'm I'm I'm getting approval from them right now
on two in projects that will be paid for this fiscal year. >> Where's the line item? It's 15,000. >> But yeah, it's project in L of fine. Right. >> Right. Right. >> But >> but is that all in here? Should that be in here? >> It's it's >> I figure it's two separate years and two
separate funds. You have >> the budget for this year. >> I'm here. >> Yes. Right here. >> Where is it? >> It's You're saying to put 30,000 there. >> No, >> she's just asking where it was. >> Oh, okay. >> It's 15,000. >> That's it right there. >> Right there. >> That's it right there.
>> But you have Okay. >> He's carrying it forward to 15,000. >> Well, he's leaving the same >> leaving it the same. Right. But it's going to be for two different things. >> Correct. So, if we put that in there, are you positive you I mean, you're dealing with D. Are you positive you're
going to get you've been working on this for how many months trying to get >> It's been It's been a little bit. Yes. Because we've gone back and forth. It's about three months on back and forth on projects, but >> don't get it done. >> Yeah. This last one though, these last two projects I did was right out of their book. I don't see why they
wouldn't. And it's projects that we need and it's >> Can they be funded this year? >> Absolutely. But when I say this year, by September, >> by September 31, 30 30th, yes, I can do it. Yes. If they give me approval, I'll I'll cut everything loose and and get
everything done. I'll get you guys to approve it and we'll be we'll be rolling. >> That's perfectly fine. >> And is it going to be more than 15,000? >> No, it will not. >> Okay. >> It will not. >> Okay. Bad debt. It doesn't look like we're we're doing anything. Are we going after
any of that? >> Yeah. >> Where where are we even? >> Our debt has been Yeah, it's been accumulating. I thought we were giving it to a >> collection collector and then every month in the city manager report I see >> nothing added. It's just what's going on with that.
>> Maybe they've got it underwater. Do you have it underwater? >> I think Jos been backed up too because I've been I kind of asked how how that was going. I think she's just she's kind of backed up in that whole process. Um, it's just every, you know, every month that goes by, there's less of a chance we're going to get
>> that's not and and quite honestly, I mean, >> I understand being backed up and I'm not being critical in any way. >> If you haven't paid your debt and we need to have a policy, you need to have a policy in place. If you haven't paid this collection from us within six
months, >> it's an automatic. It goes to the collection agency. You just send that on. It's just a a a continuous, >> right? It should always be going >> every month. You send it on whoever has it in that sixmonth period. >> We don't have any water either. I don't have anything in the water either
>> for bad debt, >> right? Well, I mean, >> so you know what kind of message we're sending? >> It doesn't matter. >> Yeah. You can just run off and not pay across the city. >> So, >> I've got a note in here >> and that and that's part of your
mayor. >> Yes. In prior years, we have spent a lot of time on this issue. >> Yes. I mean, we've discussed the importance >> and we've raised customer deposits, >> collecting >> many multiple times, and we still have >> and I'm sorry,
>> I don't see what line item it is. >> It's line item 37. >> Okay. But it it continues to build up. Yes. >> And I agree with you that um Wait a minute. that um so this means there's no
>> this was on this is listed as on the expense site. >> Yes. >> Line 37 >> because we're not right we haven't written anything off. >> We haven't written anything off nor have we paid any collection the collection agency because there's a fee to do so. >> Oh yeah. Okay. And so the bad debt and
it doesn't look like when you come in here into revenue, you don't even um >> past >> you don't even have anything in here for >> you know for that >> past debt. Yeah. >> Right. >> So you need to have a line for that too.
And unfortunately, this is happened in the past and has happened in the recent past when it gets to be five years worth and it's hundred and something thousands that then they come, you know, Jos comes forward and asks us to just
>> wipe it off. >> Here's the thing. I I've got I've got an option and met a company, a person of people down in the ICMA. >> You know a guy. Go ahead. >> Know a guy? Yeah, he knows God. He knows God. >> Well, he came in and showed a whole
program for us. He's emailed a couple of times. I brought him to Jocelyn. Jocelyn and I I respect her and her position. I go to my people, say, "If you like it, I'll back it up. Let's do it." She didn't want to do it, but I will I will call the guy again and have him come in
and present to you all, and if you all direct me to do it, then I can I can move forward. But they have a service that they go and it's not a debt collector, but they go and get those funds and that's how they pay themselves out of that and the collection amount is pretty significant.
>> Derek, I don't think that that's up to us. That's you as the city manager to say regardless of whether you like it or not, we need to do something to to collect our debt and this is how we're going to do it. >> Look at that number. >> I mean, every every every manager's
report, it's in there. Okay. And >> that just it makes them sick sometimes. >> Okay. >> Because, you know, we're sitting here and we're budgeting and we're hming and hawing over a few thousand dollar when >> Yeah. >> There's people that owe us, >> you know, and it all adds up. And I know that it's just a little bit here and
there, but if you're an ongoing customer, you pay even if your water your your gaskets cut off, you pay to have it turn back on. It's the people that are leaving moving and leaving people hanging. >> And I mean, there's got to be a better way to go after.
I'll I'll resume the conversation. >> That maybe that came across a little harsh and commissioners, I don't know if you might disagree with me. >> But I don't think that that's something that we need a presentation on. Figure out how to collect this and get it collected. That's >> you got it.
>> Right now there's a significant cost that's not going to be covered through those collection. >> The cost is actually covered through the collection. So it doesn't cost us anything. But you've got three people over there, >> right? >> Okay. >> Okay. I'll take care of it.
>> Yep. >> I don't know. To me, it seems like that's >> Sorry, >> you're good. >> A little harsh, but >> you're good. I'll take care of it. >> Thank you. Uh, so let's see. Where are we at? >> IT support.
>> IT support, no changes there. Office supplies, no changes there. uh going on to operating supplies. This is a change because of a significant increase in the cost of chlorine. Not necessarily the amount that we're using, but the cost of chlorine itself has gone up
significantly. >> Um we're already at almost our budget in year to date at May uh for this year. And so I'm increasing that by 43% or $6,000 to a total of $20,000 this year. >> Have to do that. So
>> the uh cost of fuel is the same way. Diesel held the same. I think I went up $100 just to make it 500. I didn't like 400 sitting there. Um that of course is small tools and other things they use cleaning. But the gas itself um that went up to uh to $1,500 or $150 more.
>> You know, you're going to spend more than that. >> I I I think I think gas itself is starting to come down >> and that really has to do with the with things that are outside of our country. But >> yeah, >> but it's going to go back. I can guarantee you based on the last couple of days
>> it's about to go back up again. >> So you just need to be prepared for that. >> Okay. >> We might as well be over here. >> Okay. >> Because it does it seems like cost of gas we are always >> Yeah. >> We always are over we always spend more than what's budgeted. You might as well
budget higher. And also what you've got in the cost of gas here is that for a good portion of the year or for some period of the year, y'all were going and you were buying it. >> Yeah, correct. >> Up there. We weren't doing it down here, >> right? >> Everything you're you're assured that
everything's being done down here and does everybody have we know exactly the code that everybody's how much everybody's using. >> That is what >> is that monitor? >> That is what I'm being told. Now, as far as monitoring, I I'm not personally monitoring. That's something that Keith has been doing and everybody's been getting gas out.
>> A report. >> I should be able to get a report. >> You need to get a report. >> Well, you should always have a report. >> You should always have a report >> and it should be weekly >> to know if somebody's using more. So, if somebody's >> We have to be able to control that too
to make sure that there's not that we would ever anybody would ever, >> right? >> But you just want to make sure >> there's no Yeah. You know, it's gotten many an in agency in trouble before because they're not monitoring the usage.
>> Don't we have GP? >> No, we don't. >> Okay. >> We don't have that cameras. We don't have anything. >> I don't know why I asked that, but I just >> like being in the 1960s. >> I'm sorry. I keep trying to turn this down. >> Mayberry. They had Barney. He took care
of all that >> membership. Andy >> membership and training. We're at for Florida Rural Water Association renewal $500. >> The best time. >> Um
yeah, for sure. Uh cost allocation general fund. Um same as last year. >> Holding on that. Nothing's changed. Equipment and machinery. Um there needs to be a couple
upgrades here. Um, I put in uh an additional 61 and I was balancing the budget, but there that that number has gone from 5,000 to 11,182 for equipment and machinery. >> So, right back here on cost allocation
general fund, make sure that you're consistent across all of these enterprises with the correct verbiage. >> Yes. Okay. >> Remember we talked about that administrative. Yeah. indirect cost >> and and I guess again we still don't know what the formula is.
>> Is this indirect cost allocation? >> Yes, because you look at this it's 145 and then how much in gas are we I mean >> I don't know >> we're we're we're need to make sure we can back that up. Yeah. So that's part of our question and
>> I'm surprised our auditors Yeah, that's part should be part of our audit. All right. >> Um, this one has the uh the bond payment interest over a solid state. >> Kept that same as last year. 251. No
change there. Total operating expenses have gone up by 10% or $40,27 for a total of $429,900 >> on that bond payment. Can we find out how much we >> payment is and all that stuff? I'll get all the data for you.
>> And again, Derek, let's go back to our cost allocation general fund. So, you've got it budgeted for gas at 113,100. >> Okay. >> Five employees. Four, four or five employees. >> Over here, wastewater, you've got it at
145,000. >> We didn't come up with those numbers. >> It's not equitable. So, we need to figure that out. And again, the reason we're saying this too is keep this in mind is we need to make sure that these
enterprise funds, if we lose general revenue next year, that they're paying their share. >> Okay, >> that's that's important. So, >> okay, >> you need to figure out the formula that best suits that and it needs to be across the board for all of them. >> You got it. and and there needs to be
some basis and backup for it so that in case we ever get challenged because of the changes in legis state laws saying that you can't do >> general fund transfers. That's why I saying we don't need to use that word because it's not a general fund transfer. >> Okay. >> It's an indirect
>> indirect cost allocation. And so we but we need to be able to back up that with some sort of reasoning >> just like with the CRA. >> Okay. I've got a note on there. I mean, somebody at some point came up with a number and we just keep using that
number. But I'm sure there was a reason that >> there has to be a percentage something of us. >> If not, we'll we'll create another and we'll we'll bring it to >> another number, but we need to have some sort of >> create another number. >> Yeah, >> it's based on square footage, based on something >> with some basis.
>> Yeah. >> Um, so moving forward, Bay Street was taken out of here. Um, I've talked to Keith. that's going to be completed this year before September, >> uh, the end of September. And so we've got the wastewater treatment facility improvements design,
the new grant that's in there at 50,000. And so our total operating expenses and grants is at $479,900. Um, right now though, because of those changes that I made, we're over. So I need to make I need to make some changes
to this budget to balance it out. But I'll do that. >> Well, we change because we changed the um >> I know we changed but our what was our revenue? What's our revenue? I don't
know. We budgeted to begin with >> Yes. I mean it looks like I don't Well, >> no. Mine says zero. I showed it. >> Mine says it it was um >> Mine says it it balanced. I was looking the adopted budget >> for
last year it said was in the red 52,000 but I I don't have a spreadsheet actually. >> So because you're showing the budgeted revenue at 600,773 and then you come over here and you're telling us that the budgeted expenses
are 479,900. Yeah. So, you've already you're not you're not balanced there. Your expenses are are already way under. And that's with with not doing >> the additional checks. >> Yeah, I'll check them.
>> Yeah, I could. My total operational expenses line 51 on my sheet. It says 429,000 >> 900 plus the 50,000 that you have for the grants. >> Yeah. So, the total at the bottom it should or not. >> Oh, I see. Got it. Got it. So yeah,
should be in another different line. >> So we're taking out you've got 133,000 in for personnel services as well. And so that's that's where the difference is. You've got >> well your your total is 479. Your total on revenue is 600.
>> And then add the 133 for the personnel services. That's not included in there. >> That should be under your total operational expenses and grants should be all your operational expenses and your grants. >> So it's it's It's not. It is total operational, but
in here that does not include personnel services. You can see on line 25. >> Why doesn't >> because that's total. So it's total personal >> that's all your labor expenditure. So you have to add that. I I'll fix it. There's we made some changes that need to be balanced out.
>> But that 133 is not included in that number. >> Correct. >> So that's why it doesn't matter. >> Correct. >> It it just it doesn't include the personnel part. That one page where it says personnel expenses. That's not included. That that number at the bottom >> 120. Yeah.
>> Yeah. That that number 4333 is just your operational expenses. So you got to add those two numbers >> together and subtract it from your total revenue. >> Why' you do >> that's what that's what they've done on the other pages. We just paying attention to it >> I guess. >> Okay.
We just change that and make the >> No, you always do the whole thing. You that's part of your those are part of that should be part of your expenses. >> Okay. We'll take care of it. We'll make it easier that way. Total expenses >> like you have total revenue >> because it does usually on the other ones.
>> So we can take this one in the other one. >> It's with that in it. This right here total operational expenses, >> right? But that operational expenses don't include the personnel. >> That's why so it needs to have >> you need the personel to operate. Right.
It should have Well, yeah. But it should have a lot of total expenses. >> Like it does have allowance as total revenue at the top minus >> that's how that's how we figure out what their balance is. >> Yes. >> Yes. I mean I agree with what you said. >> I just did it. >> Okay. >> So now it's
>> it's just >> although you don't need to do that. >> It's just those two. make another line item that just says total expenses. That adds the total operational expenses and grants and the total personnel. >> Okay, I got it.
>> I mean, do we got all that folks? No. >> Okay, let's move on. If you're done, are you We're done with that. Let's move on to water. I guess. >> There we go. >> You ready for water?
>> I'm ready for water. >> Okay, let's do water. >> 5% increase in water rate um um from last year. 465. That takes us to $488,421. Up through May, we received $340,000.
That's an increase of 23,258 from last year's budget. Um service charge, we held strong, same because admin fees and 15 per instance for water turn off and on on and off. We've taken in this year $8,272.
Uh we feel that 10,000 is a good conservative number. cut in charge stayed the same. The price varies depending on the meter size, but um that has taken in midyear $1,200. So, we're we're feeling pretty good about that one as well. Um
you have a total revenues of $51,971 with for an increase of 23,258 and that's a total of 5%. The grant for the waterline replacement, that's at zero. We've moved that. Um the
significant change on this budget of course from last is the north main CDBG that actually is is being worked on right now as we speak. It'll be done by October of this year. That's 585,000 that's out of the budget for this year. Um everything else is zeroed out. All
the projects have been completed. Um the new city uh Lake Street and um or Lake Street Southwater tower water main improvements $112,000 appropriations have been put in. That gives you a total for revenues and
grants of $613,000 or $613,971 and that is a decrease of 66% or $1,29,742. And that's because of the projects that have been taken out and completed Lake Argenta North Water Main and the uh
CDBG. >> Wait, mayor, I have a question. >> So, you sent us an email from I think Representative Sap's office that told us we received two projects. >> Yes, ma'am. >> One was the $112,000
was the wastewater. The other one was >> design that we just went over. >> But so where what will $112,000 do for us? >> Design. It'll be designed for the prospect of South South Lake Street for Lake Street and the South Water tower
design. Okay. >> Water the loop and then it goes all the way down. >> Okay. My question is for the city manager. I'm sorry. Is that sufficient for >> Is that sufficient for design? >> I'm not an engineer. I I would assume that it would be for what they have and
they've already started some of the work. I know it's things that they've already had some things moving around. So, uh for the next phase of their design, I would say yes. >> Came from CPH. >> Good. That that came from them. Correct. >> Okay. So, that's what I wanted to know. The amount appropriated by the
legislature matches something defined that we gave them. It's what we gave them. Our our top two projects, they did not get funded. Cherry Street didn't. And that's something I I meant to bring up when we were talking about wastewater because that's going to be we haven't
put we need to figure out where we are on that because >> the which one >> Cherry Street. Yes, ma'am. Um that's something y'all received an email on that we're going to be talking about um on Thursday. >> Okay. >> Yeah.
We know what our balance is and repair and replace because that can be used to extend the system. >> Yeah. have to be replaced under >> and I believe the total project cost was a little under 400,000 like 380 >> the final quote
>> we had talked to them about initially um we talked to them about doing a split with us >> on that but >> if we if we were to pay it ourselves >> and and and go about doing that ourselves there there may be some
negotiation there for 50% share I'm not sure where they're at but I know they want to building on it, they would have to pay well more than that for each of the homes for septics. So that may be still a negotiating point if we have that if we have those funds in there because half is going to put you around
180 to 190 somewhere around there. So I think the cost came in at either 360 or 375. It was under 400,000 the lowest bid that we got. Um and they're still holding by the way. We've talked to them even after the appropriation.
>> So moving on um on this I'm sorry. >> I'm sorry. If we go back in here. So, it looks to me, and I don't know what's going on with our water sales, but it looks to me if we're at 340 so far for the year in May, that's five months into the year, we're doing about averaging
about $68,000. Yeah. That's looking at about 612. >> No, that's more than five months. We got October, November. >> Oh, that's true. >> Okay. >> So, we have four months left. I did I did it based on that like we
might be coming in over a little over >> a little over I believe so and and >> we're still just kind of be conservative on this >> if we go over it would be wonderful >> that's what I was going to say hopefully we'll go over for this year >> yeah
so then moving on um going down to um personnel services um Steve's gone through again on this one I'm going to go back up I'm I'm going to add just like we did on the other instead of having a decrease um because of the change in salaries, we're just going to
keep it where it was and go 5% up. So, I'll make that note, Keith, or Steve, and then you can just kind of roll through and do all the rest. So, instead of having the negative number, it's actually going to increase by $5,000 and then we'll have some other
increases there. Now, the big the big item here is the next item on on line item 24, which is overtime. >> This year, we went significantly over. It wasn't planned and it wasn't on purpose, but there was an issue with our contractor when it came to the uh water
plant. And when we were getting that all cleaned and painted, Jason had to go down there for a few months and manually operate the plant. It wasn't foreseen, but it had to be done. um till night or something. >> He worked through the night. He worked
on the weekends. It was insane. He kept a I mean I don't think it said enough and it and and I need to and I know Keith has but just praise him for the work that he did. He got paid for it but no I mean 2:00 in the morning he's over there. >> He was down there. >> He was down there. Um so we went over.
Not that we're going to have that again this year, but I think it's important for us to make sure that we have dollars involved in there. I balanced it out here with 15,000 in the budget for this year, which is a $10,000 increase from last year for unforeseen items.
>> Uh, no other change. um Christmas pay, all the other stuff is really just associated with the change in the in the pay that um Steve's going to go back through there for the FICA, Medicare and all that and get that adjusted. Um moving on to the operational
expenses, a $3,000 increase in the budget. Um last year we had 7,000 in for other professional services. This is for our water testing services. Um we had overages taking place from extra testing with the
schools that we're in. But um and and that's really us taking the test to the county or to the place that we get the testing done. It's just extra work that we did because of that that work. But I'd like to increase that $3,000 to cover testing for next year. As we
continue to grow and have other businesses coming in and doing testing, it would be nice to make sure we have the budget set for it. Um, Commissioner, if you I could also I know we have our regular water report, but you know, one thing that concerns me
is is that we're on top of this because earlier this spring, we got a letter that said we had the treatment chemicals were over the levels they should be for a quarter. Wasn't that this year? >> That that that letter went out this
year, but it wasn't that they were over. What happened was we were seven days late on turning the test in. All the numbers came in at the level that they needed to be in. No, nothing has ever been foul on any of the water test. >> Well, as part of the right Okay. Well,
regard be that as it may, when I read that letter, that is exactly what it sounds like. So, um, and the next, so number one, um, so we had to send the letter because the test wasn't timely.
Is that right? >> Correct. And I >> So, hang on, hang on. Regardless, um, there's some very unpleasant information in there about um that it's not good to be exposed to these chemicals, you know, long term. So, I guess one, um,
you know, I'd be interested in us evaluating does Jason or whoever have the time to to do this because obviously if he's spending overtime somewhere else or whatever, if there are other demands, I think we need to make sure our tests are
timely. And the other thing is related to what the mayor was saying about education and commissioner Lori was saying about um educ, you know, telling our story. I think in the water department, we really need to do a good
job of telling our story. I'm not necessarily saying this should all should fall on water department personnel. Um but there's always rumors circulating about city water and actually I got phone calls yesterday
>> right but this this is the very important part it's not something that people understand and actually city water should be a selling point for us if we tell our story and there's a story
to tell because we most people around here who don't have city water have wellwater Okay. Most people who have well water don't do the level of testing that sitting water does that. I mean there's two things. We test in a way
that would be very costly and also um when the power when the power goes out I mean our water our water has to meet certain standards and also when the power goes out we generally have water. we have that is a great selling point for people to move into the city and I
can't go on Facebook and correct people or say this. I can't do it because I can't pay500 or $600 a month to archive whatever I post. But it's a selling point for the city. So to the rest of the commission I say I was going to put
this down when we got to the other part of the budget. Um it really should be a selling point for the city. And when people say, "Oh, just, you know, dig your own well. Move outside the city and dig your own well." >> It's the same water.
>> It's just not tested. >> Well, it's not treated. >> And it's not treated. >> Exactly. It's not treated. I understand treated nor is it tested. That's why people that especially in this area, right, especially if they're close to agriculture, I understand they drink out every I mean,
>> my parents, you know, how much money they go through just in bottled water. So yes, >> I understand this, but I guess what I'm saying is if we're going to be educating the public, that's an easy education and it should bring it home, you know, how beneficial it is to actually live here
and have treated, tested water. Yeah. So there you go. Um and I'm glad to know that there wasn't an overage. But no, >> the other thing is um we really need to be careful about the letters we send out because >> you know you need to make sure that they
hit people with the message that we want them to get. >> If if I may on that. So >> there was a recommendation a recommended date uh and time for putting in the test.
Jason uh because it was recommended and not required took a couple extra days. We didn't even know about it being an issue until they sent the letter. We were actually given the letter and provided the letter by the
>> D to put out. We had nothing to do with that particular letter. We were required to send that letter out as notification. >> Right. >> What that letter stated was that these items are what any municipality tests for. And if you're over these items for
a long period of time, it's unhealthy. Our test came back perfectly fine. I just want to put that out there because we brought it up. Our test came back perfectly fine. The letter that we had to put out was provided and required for us to send out which we did in a timely manner to be in compliance with the state. The test that we put in came back
perfectly fine. So everything's everything is kosher uh with that. >> Okay. But this is exactly my point. I understand about letters that we are required to put out. We DP tells us we have to send that letter out. Sure, we have to send that letter out. But we're
not prohibited from shorter, more clear communication. I mean, we can tell our >> Are you saying an extra understand? >> That's what I'm saying. But it was >> okay. >> It was no offense to D. It It's not a
very reassuring or helpful letter. It's legally required, right? But anyway, we can >> We also, just to let y'all know, we also received a letter from the D, >> right? saying that that they didn't disagree with what Jason assumed the
requirement or the recommendation was and that they were now going to change their language to requirement versus recommended because that was very confusing for us. >> Well, and D has been confused before, but anyway, I didn't mean to get into this. kind of that at a different time,
but moving >> the story, >> moving forward, >> telephone, postage, um all of the items um going down, rental leases, auto, property, insurance, um they're all staying the same. >> Building repair, >> building repair is the one that that
I've added some money to that because we need a little extra cash in there to cover any expenditures. the buildings are the facilities are getting older, whether it's, you know, painting or other items that need to be done. I wanted to have some funds in there. We had zero dollars in there um last year
and it looks like we had $1,25 amended budget, so I wanted to add that back. Um vehicle repair and maintenance is $2,000. We've had that last year. We've only expended $620, but Jason's truck is getting older. That is one truck. And so
that's why that's there. equipment repair and maintenance. Um this is quarterly. Um this is uh water plant south tower inspections annual inspection of Walnut Street water tank. It includes miscellaneous repair items. I put a note on here need to increase
based on billing this last year and aligning closer to the 2025 original amended budget. Um and so I tried to increase that. I I put in 21% $6,275 more than last year's budget of $30,000.
We have a total of 36,275. >> Yeah. Uh other than that, all the the fire hydrant repair that was ARPA that's been done. Although um >> it still needs to be >> there still we're working on getting a number. I believe it's four of them that need to be completed. So this may
change. We do have that money in there for that. So I may add that in here back, but >> Okay. If it comes in here, remember, you've got to put it on the front end, too. >> Yes. Correct. On the revenue side. Yes, ma'am. Um, other than that, no changes except for operating supplies. Again,
this is the cost of chlorine. They've gone up significantly. You can see how much we've spent so far this year. On the water side, 45,000 as of May. I think we'll we probably will tip into the 60,000 range, but I'm asking for
60,000 this year. It's a 10,000 increase from the budget of last year. So we pump the water out of the ground and we chlorinate it and then we take the waste water, we treat it the effluent and then we chlorinate it and dump it in the ribs. Right.
>> It's a smaller amount of chlorine but yes it gets chlorinated as well. >> Yeah. >> Different different levels for different outcomes. >> Have enough chlorine. >> I don't know. I was a swimmer in high school. I got plenty of chlorine. Your hair would turn green.
Gas of course. Ga >> and gas of course. Um increase there a little bit on that. We've used a significant amount this year. Um I'm asking Keith to go back to take a look at that. I've made a note with him uh
because we budgeted 3,300 and we've doubled that um this year. So >> you I didn't hear you. The motorcycles outside. >> Oh, just gasoline. I'm having Keith take a look at that. And we we've doubled that number from the budget. Last year I added 1,700 to this budget. Um we'll
hopefully level that off next year. Um but a lot of that had to do with our increase of testing because Jason is driving those tests to the facilities to get tested and we had an ample amount of more testing done because of the high school and the and the elementary school. That's
>> Can we find a closer testing spot? >> I I wish. >> Where where is it? >> I believe it's in there's one in Palaka and there's one uh I think there's Ocala. >> He goes to Okala. I was going to say >> yeah it's a little further. So yeah >> um somewhere over in Marian I thought. >> Yeah.
>> But the gas So the gas also keep in mind gas we had a big gas fight this year. Yes. >> And they were getting it from the >> from the pump. >> From the pump. >> Yeah. Yeah. And so again I think being conservative $5,000 we should be able to cover next year if we tighten that up.
400 no change to the diesel. Uh membership and training no change. That's for rural water association. the Florida Rural Water Association. Say that 5,000 times fast. Um, and then of course I'll have the language changed in there for our
allocation on this and we're going to work on the um the percentage to make that even and equitable. >> Um, so we have a total of operational expenses at 331,973 with the changes of the grants. That's a
That's uh down 32% or 157,339 157,339 from last year. Um >> grants are down there separate. >> The grants are down there separate. So that should change. >> Oh, I'm sorry. You're right. >> This is the change from the the garbage
uh garbage >> garbage contract came out. >> Yeah, >> because that's always separate. >> Yeah. And I'll make sure I I double check that, but the total is correct. And then we've added the Lake Street, which is
$112,000 for the grant. And so our total operational expenses and grants is $443,953. And the net position change right now, we're a little 14,000 in the red, but that's when the change is made. So I will make sure I get that uh balanced
out. How much are you showing in grants? >> 100 112. >> Okay. >> Right here. 112,000. >> The total revenue in grants was 61371.
So when you do the total grants and the operational and the you need to put a total expenditure line. >> Yeah, I'll I'll fix that for you're talking about adding the 184,000 for the personnel expenses. >> Adding all three >> expenses. Yeah. Now, um
>> I'll do it like I did the other one and >> I'll fix it. >> Total expenditures because we have to revenue >> there. There was a reason we split that out last year and I can't remember why >> but there was a reason we did >> exception sent is fine, but you still should have one that has all of them combined.
>> So, you can look to it should match. >> I got it. >> I mean, you're doing that in your formula, but that doesn't help us see a number, correct? >> Yes, sir. Yes, sir. I mean, I do like that you have the personnel separate because that way that's really our
biggest expense, you know, in each in each fund and it should be besides buying water, you know, paying for gas and water, you know. >> Okay. Are we do we want to So, you're done. Do we have any more questions on water? Anybody?
>> Okay. Do you want to trudge on through or does somebody need a break? >> I just need two minutes for the restroom. That's it. >> Mayor, two minutes. Yeah. Okay. We always have to stand in line. >> So we advertise for today
um the enterprise funds and or we look at the general fund, right? >> What did we advertise for all of the budgets? >> All all the budgets which would include the better place and the CRA. >> Okay. That's not what was on my agenda.
My agenda said >> what did we what did we advertise for? I thought >> agenda says >> I thought we were doing >> all of them >> because remember we had this issue last time. We said we would just put on there just a blanket
>> and then I ran the um when I ran the agenda by you it said enterprise fund and >> general fund update. >> Okay. My that's that's what the agenda said. It said an enterprise funds and journal funds update. But before I posted it,
>> regardless regardless of what it said, >> we have been here five hours and we did not >> get these things before we walked in this morning or at least I didn't. Um, personally, I think we would be better off and do a better job.
>> Um, if we could set a time to come back and look at better place and CRA budget because we have been here a long time and I think the time was well spent >> the justice enterprise and general fund update, >> right? I think
>> so we can't do CRA and enterprise. But I think the time this morning on the gas um the gas issues was very well >> spent. We'll be >> okay. So everybody get your calendar out
because calendars have clean or are filling up. So that would make us done unless you need to go over something with us on the general budget. Do we need to >> Yes, I do have something I want to pass out to everybody to look and >> get that done. >> I will email later. Um, since we're
talking general fund, um, I'll I'll speak real quick. So, we got the, um, the DR420 from the county and verify, but we we do have a roll back rate. I'm going to pass around the roll back rate. This first sheet that you're going to
have is what we have now. The second is our roll back rate. And so, if the commission would like me to work on a budget associated with that rate to bring back, I can. But right now, we're working off of our max rate, which is our current rate today.
>> That up there so that we can just >> You're just passing it around and I'm going to email a copy to all of you. >> Okay. >> Yeah. >> Well, it's giving you You have both of them, correct? >> Both current and the roll back.
>> If we were to do the roll back. >> Yes. I believe it's around a 78,000 70 somehat thousand difference between the two. Yeah. >> I'll I'll email them. I'll email them to you, Commissioner.
>> I have So, wait. These are >> That's the DR420s from the county, the roll back rate and their current rate. >> Okay. So, you're going to email these documents to us? >> Yes, I will. >> You can make a copy. We make you a copy because you sent them an email.
>> Okay. too long. I mean there it's short. I mean it's fine. Um so basically the roll back is >> 8.17 34. >> Um
>> okay. So you want me to send these back the other way? >> Okay. >> I could have done a better job than that. Sorry. >> Hey, everybody have the calendar out. >> Speaking of calendars, will you write it to the
>> I was going to announce that? I'm going to announce that. I've got that on my list of things to announce. >> And I don't know that wasn't up to me, >> but >> but I I asked >> I asked yesterday
>> and um was told to please Yes. invite the commission. that they've got tomorrow morning they've got the ribbon cutting at 9:00 in the morning. What? >> At the elementary school. >> Oh, at the elementary school at 9:00 a.m. >> Oh, nobody told me.
>> There was not Well, nobody told me >> they had they had a new public relations person working at the district is what I understand. >> And I got mine through a thing through a thing through a thing. Ashley Mcool's been doing this so she knows >> which she's not there anymore. >> No, I know.
>> Yeah. So, I mean, that's why we weren't >> um but >> I got through your day yesterday. >> I've got things things and um it came that's how it came to me. And so, I sent out the request yesterday. I think it was yesterday. Yeah, it was yesterday. Do I need to let the commission know and
I'll be with them on Wednesday and she said, "Yes, please let the commission know if they don't already know." Um and I let the other mayors know also. Um and I don't know if I was, but I I let the other mayors know. So, tomorrow morning 9:00, I don't know where. I'm just going
to show up and go wherever the cars are. >> There's one entrance as you turn on Union. That's the first entrance that goes to the parking lot. The second entrance for buses >> the um open to the public on the I believe it's on the 13th. >> Community
night. >> I was going to mention this um at the Lens Club. >> Yeah. but board meeting. Um, a retired teacher who works with the schools told us that community night is this Thursday, the 16th.
>> Let me see. I've gotten several dates for that, too, >> cuz I was going to ask. >> Maybe it is the 16th. >> The She said there was an earlier night that was for personnel. >> Um, and that might be the 13th. That
might be the 13th. I was told originally that tomorrow night was going to be their night and then they retracted that the 16th is for family night. >> So the 16th is going to be for open to the public >> because I was going to say if you have a
different date I would get back but the 13th is the one that's private. >> 16th and does it start at 5? >> 5. Okay. So everybody has their calendar out when when do we want to do our next workshop?
>> All right. And we How much time do we need to >> You've got better place and you have CRA, >> right? But I'm saying we don't um because I have next week >> I would say an hour for each at at the most. They shouldn't take that long.
>> I'm looking at days. I'm not available on Tuesday the 14th at all. I have a medical appointment. >> And then Commissioner Lori and I are going to the >> preservation on Main Street from Tuesday
the 21st to Thursday the 24th. Although I'm probably not leaving until lunchtime on Tuesday the 21st. >> You're going to stay. You're going to stay over or you going to drive back? >> Oh, no. cuz they go they go start early
to mid. Right. Right. >> Yeah. >> And this time it's not like walking distance, you know. >> No, I'm sure. What dates were those? >> The 21st to the 24th. >> 21st to 24th. >> Next week is good. >> My question is do we I guess we have
enough time to notice it if we meet Thursday or Friday. Yeah, we have enough time for a workshop. Okay. >> Don't we have enough time? You can't do the 21st. You have that um orientation. >> I I do, but they they don't either. They can't either on the 21st. So, the week
of the 20 I mean the 21st to the 24th is out. >> The 20th would be the only >> the 20th we could do it that Monday. >> Or we could do it that Thursday the 16th. >> Right. >> We still do it next week. We just
>> What about Monday or Wednesday next week? >> Yeah, Wednesday next week I think. 15th. >> The 15th, >> right? I can do Wednesday the 15th. >> I can't do Wednesday. >> Can anybody do the 22nd? >> No.
>> So, will the some of the staff >> Monday the 13th? Is that >> Thursday the 16th doesn't work? >> The morning of the >> It doesn't work for you, Commissioner. >> No, I'm sorry. The 20th. >> No, we're talking >> the 16th. What does the 16th look like?
Well, it's that's fine with me. >> They do have a PNZ and historic preservation that evening, right? >> PNZ is on the 16th at 6 o'clock. >> We're talking about the 16th, >> but we could do that morning. >> Have a staff meeting at 9:00. That
should be done by 10:00. >> Yeah. >> Let's see. Let's do Friday. >> Let's do 11. >> But I'm just thinking I mean I would >> Yeah. 11 Thursday. Okay. >> Okay. Breakfast. >> No lunch. We're gonna work right through it so we can get it done. Okay.
>> To have a have a hearty breakfast >> or just bring snacks with you. >> Okay. Now, I'm going to be very specific on this. CRA CRA better place. >> They'll be ready. >> They're already ready.
>> Just in case, do you need to put on there something that generalizes and uh the and the general budget? >> Yes. Do you all want >> and the overall just put Why don't you put the overall 20 just put those you can put those and then at the end put
the overall 2627 budget just in case anything comes up between now and then and you've got it covered. >> Okay. Um >> just put overall budget. >> Does the commission wish for me to run the numbers up looking at an alternative
general? >> Yes. >> With a point with a roll back rate? Yes, >> I can do it. Does it We can do it. >> I mean, >> mayor, but that's up to the group. >> I recommend that. And I didn't bring the legislation today. I think it was House
Bill 1329 that passed and is signed into law. As for next year, start goes effective January 1st. So, it'll be for next year's budget. Cities and counties will be required to do a 10% cut exercise. So to me, um,
may as well get started on that. >> My >> the first commission in >> I'm not saying years and years and years that will have done a roll back three have rolled back three times. >> This be that would be the third roll
back. But I'm just saying so for those out there that you know are critical of that just so they know that that this commission will have done a roll back. If that's the case, if y'all decide we need to do a roll back, >> then that will be a a third roll back. >> I'm going to tell you, we're going to
get a roll back pretty quick. Yeah. And it's called November. It's November when it's voted on that there's going to be no property taxes. We're going to get real. >> Wait a minute. Wait a minute. It's home homestead only. >> But I know, however, but keep in mind
that that's also for commercial. But they right now have a 10% it'll be a 5% increase >> right I know their increase is lower but they are not they are not absolved the financial their valuation will >> the the financial impact on year one if
it's passed is double what this roll back is >> yes >> it's double the second the second year it's almost triple >> right >> to remember that so I I personally I mean looking at it you have the max and then you have a roll back. You don't necessarily have to go all the way to
the roll back. Maybe if you decide as a group, maybe you go in somewhere in between where numbers were origin. I I don't know. I don't know. >> I don't know. All I know is Putton County. Putting County is a county. >> Yes. >> Okay. It's going to be $17 million. >> Just keep it all in line there.
>> Yeah. >> It's going to have to be made up somewhere. >> So whether it's in property taxes, it's going to have to be made up somewhere here in county. I >> because if we if you go down now >> and then you go you're going to have to go back up >> and that might be a real big problem
>> the last meeting and that's a concern of mine that that we do that and how is that going to look so you've got to look at your optics because if we do that in the next year we have to go up because we're not able to meet those services that are required for us to meet
>> because we this coming in going into this year we decided it's just something for everybody to think about. I understand y'all wanting to do that and to show that, but I also think that we've um you know, you know, I'm all one for saving money.
Don't get don't get me wrong, but I'm also I like services and maybe to save money, maybe the state should have thought about getting their act together on insurance, home insurance or some of those >> insurance in general. Yeah.
>> Yeah. other services or, you know, lobbyists, you know, uh to to save us money to do that. >> I want to also bring to everyone's attention, you probably already saw this, but um there's the webinar next
Monday, the 13th at 10:00. Make sure if you if you're interested in it, it's going to give you >> um it's at 10:00. you have to register for it >> through the Florida League and it's going to give you their their you know overview and >> and we have to be very careful everyone
I'm going to caution everyone about advocating you we've got to be very very careful that we're not um >> very we are educating we don't advocate right >> yes well yes you have to be very clear we
can give facts no opinions And that's it. >> Ma'am, I have one issue that I wanted to bring up. And then there was I don't know how many of y'all saw a news story or an alert that there is now rabies in cats in one particular area of Valuchia
County. And the reason I bring this up is a there's several people here who do cat rescue and probably more who feed cats. Um, and then there's the issue. Um, this is just something to put on our
radar screen. I don't know, um, if we're going to follow it or what, but, um, y'all probably all got the letter that was sent to the commission that ARK is not going to operate the mobile unit. >> I don't know what's going to happen to it. Um, but the cat overpopulation
problem and the dog over population problem, I think cats are worse, is significant. And was it I looked up the figures. Every female cat can result in at least 100 cats over.
>> Interesting. Every male catate, >> every female. I know. I know, but I'm just saying right now. >> Easier. Just go after one. >> The problem is with articles that they still were not going after any of the
>> I know that. But that's the whole we we donated $5,000 and so did the other, >> right? And the county uh gave more >> more tax money, >> right? The public entities gave tax money for this mobile unit. So my hope
is that it will wind up with I know the letter said Mark is trying to get it placed for the entity. I certainly hope it is an entity that will either be in or serve county. That's that's a just a
huge concern. Um, so anyway, but just please remember if you are assisting cats that there is right before. >> Well, I'm the one I rescue cats. I take cats. I right now I'm working on the boys. Okay. If I can help it.
>> I got a little boy in mind. >> Yeah, I'm working on the boys primarily because those are the ones I see here most often. >> But I'm just saying be careful. be on the lookout because if it's in Valuchia, >> you know, hopefully it will not reach
Putham County, but just be careful. >> We're in Valuchia. >> Well, we're it's >> a very big county. >> I know, but that they identified a specific area in East Valuchia, >> but I'm just saying just be aware of that. Um,
all of our girls are are fixed in our area except for we do have a little boy right now who's >> we're talking about Cats, right? trying. Yeah. He's trying he's trying to make to trying He's trying to find one that might not be. >> That's right. >> They're wandering right now.
>> They're wandering right now. >> All the boys are wandering. >> And we've got a lot of And we have a lot of baby peacocks right now. >> We saw one yesterday morning. Five little ones. We even have baby turkeys right now. >> Yeah, you got babies. We're going to
>> turkey cats. >> No, they're not. No, they're not messing with the >> peacock. Good. >> What were you going to say? >> I need the uh performance review from Commissioner Moore. We have everybody. >> Okay. Thank you. >> Okay.
>> Just choose. >> And then mayor, tomorrow it's on the agenda that we are going to um set the dates. Um I think city manager is going to have for us dates that we have to set for the
official adoption meeting. Did you find out the county and the >> county is the only thing I'm waiting on. I've got the school. >> I haven't gotten Yeah, I haven't gotten the counties. I don't think so. And they're gonna They will >> They will. So that's why we just have to make sure. So I I'll I'll as soon as we
get done here, I'll I'll do that. >> Okay. >> Um and remember tomorrow afternoon 4:30 4:30ish to 6, you know, just for meeting for anybody that wants to have some personal time with him after that. And if we can, um, I've asked that we just
because we don't know what kind of crowd we're going to have that before public comment, before any of that, that we just move that presentation right to the very beginning of the agenda. So, I'll ask that at the beginning of the meeting tomorrow. I just want to give you all a heads up. So, it's something for you to think about for tomorrow. >> Yeah. I don't know if I'll be right up
to 4:30. I hope that's okay. >> No, I wouldn't. I mean, you know, whenever. I just wanted to give people enough time that, you know, probably 4:30 is even a little early, but you never know how many, you know, who's going to show up. So, but you're saying logistically speaking, we want we're going to do them immediately with that
and then it will be >> Why don't you turn the projector so we don't see how >> Sorry. >> It's fine. No, you're making good use of your time. >> I'm working. >> Sorry. >> Do we have anything else? If there's nothing else, this workshop is a
journey. Thank you very much. >> Yes. I don't know if I can make that interest.